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Sales Reviewer Villanueva
Sales Reviewer Villanueva
LAW on SALES
REVIEW
By:
CESAR L. VILLANUEVA, B.S.C., C.P.A., LL.B., LL.M., FAICD, D.J.S.
GENERAL PRINCIPLES
DEFINITION (Art. 1458)
PARTIES OBLIGATIONS
(1) TO TRANSFER
OWNERSHIP
SELLER SUBJECT
Real Obligations
MATTER
(2) TO DELIVER
SALE CONSENT POSSESION
“Meeting of Minds”
Real Obligation
BUYER (3) TO PAY
PRICE
2
ESSENTIAL CHARACTERISTICS OF SALE:
NOMINATE vs. Innominate
3
SALES versus DONATION
CONSENSUAL SOLEMN
(i.e., 4th Requisite of
“Form” for validity)
ONEROUS/ GRATUITOUS
COMMUTATIVE (i.e., “Pure Liberality”
as consideration)
ESSENCE: BOTH INVOLVE THE TRANSFER OF
OWNERSHIP/POSSESSION OF
SUBJECT MATTER
4
SALES versus BARTER:
BARTER IS SALE, BUT WITH THE PRICE BEING REPLACED
WITH AN OBLIGATION TO TRANSFER
OWNERSHIP/POSSESSION OF ANOTHER
SUBJECT MATTER
THEREFORE: BARTER GOVERNED BY LAW ON SALES
BUT: NOT COVERED BY STATUTE OF FRAUDS
5
SALES versus DACION EN PAGO:
DACION IS PROCESS OF EXTINGUISHMENT OF PRE-
EXISTING OBLIGATION (CONTRACTS)
(a) There must be delivery of subject matter in lieu of an
pre-existing obligation;
(b) There must be difference between prestation due and
what is give in substitute;
(c) There must be a clear “meeting of minds” that the
pre-existing obligation is extinguished by reason of
the prestation substituted.
Lo v KJS Eco. Formwork System Phil.,
Inc., 413 SCRA 182 (2003)
DACION NOVATES THE ORIGINAL CONTRACTUAL
RELATIONS INTO A FULLY EXECUTED SALE
ESSENTIALLY: DACION GOVERNED BY LAW ON SALES
6
SALES vs. CONTRACT FOR PIECE-OF-WORK:
K for Piece-of-Work: Service is the Subject Matter
Service
“Ineluctably, whether the contract be one of sale or one
for a Piece of Work, a transfer of ownership is involved
and a party necessarily walks away with an object.”
Commission of Internal Revenue v. Court of Appeals, 271 SCRA 605 (1997)
REPRESENTATIVE
AGENCY Essentially revocable
FIDUCIARY Fruits and of principal
NOT PERSONNALY LIABLE FOR THE
OBLIGATION CREATED BY THE SALE
CONTRACT
AGENT NOT OBLIGED TO PAY THE PRICE
DOES NOT ASSUME THE RISKS OF
OWNERSHIP TO THE OBJECT OF SALE
8
SALES vs. AGENCY TO SELL/BUY Cont’d
THEREFORE:
“AGENT” is deemed to be Seller/Buyer
when contracted to assume Risks and
Obligations contrary to his representative/
fiduciary role:
(a) HE ASSUMES OBLIGATION TO PAY THE PRICE
RISKS OF LOSS
(b) SUBJECT MATTER INSURABLE INTEREST
MAINTENANCE
9
SALE versus LEASE:
10
PARTIES TO A SALE
(The Essential Element of CONSENT)
GENERAL RULE: All Parties Having Capacity to Contract
Can Be Valid Parties To a Sale
EXCEPTIONS:
(a) Minors, Demented, Deaf-Mutes – Sale is Voidable
- Purchase of Necessaries
- Emancipation
(b) Spouses (Art. 1490)
- Sales to Third Parties – Sale by One Spouse Void
- Sales to Each Other – Void
Except: When marriage governed by Complete
Separation of Property Regime
By Pre-nuptials
By Judicial decree
11
OTHER RELATIVE DISQUALIFICATIONS (Art. 1491)
Guardian Wards
Agent Principal
Except: When granted express power
to buy principal’s property
Administrator/
Executor Estate under administration
BUT NOT: Purchase of Inheritance Rights
CERTAIN
3. vs. UNASCERTAINABLE
ASCERTAINABLE
4. MANNER OF PAYMENT vs. UNASCERTAINABLE
16
RULES ON OFFERS:
• Offer is at the complete will of Offeror, who may destroy
it at will prior to acceptance
• Will “disappear” or lapse upon the happening of the
condition or period placed upon it
• When floated unconditionally, will be extinguished
through the passage of reasonable time
• Cannot be accepted partially or even substantially
Counter-offer extinguishes original Offer
5. Legal effect of acceptance is taken only from point of
view of Offeror
Offeror may still extinguish Offer at any time before he has
knowledge of Acceptance
Only a “certain” Offer when met by an “Absolute” Acceptance
will give rise to a valid SALE.
17
“CERTAIN” OFFER
(a) CONTAINS A CLEAR PROMISE TO SELL/TO BUY
(b) COVERS A SUBJECT MATTER THAT IS:
Possible thing
Licit
Determinate or Determinable
(c) COVERS A PRICE OR CONSIDERATION
Real
Valuable
Certain or Ascertainable
With Manner of Payment/Performance
agreed upon
18
“ABSOLUTE” ACCEPTANCE
(b) MAY CLARIFY
(c) BUT NEVER TOUCH ON THE
TERMS/COVERAGE OF SUBJECT MATTER
AND TERMS/COVERAGE OF PRICE
19
OPTION CONTRACT:
ACCEPTANCE of OFFER to give on Option to Buy/to Sell
SUBJECT MATTER: Option or Privilege to Sell/ Purchase:
AN OBJECT: AT A PRICE:
- Possible - Real
- Licit - Valuable
- Determinate/ - Certain/
Determinable Ascertainable
22
RIGHT OF FIRST REFUSAL
CONDITION: IN THE EVENT OFFEROR EVER DECIDES
TO SELL IT
Possible thing
SUBJECT MATTER Licit
Determinate/Determinable
PRICE: THAT WILL THEN (HAPPENING OF CONDITION) BE
AGREED UPON
23
DOCTRINES ON RIGHTS OF FIRST REFUSAL
Ang Yu Asuncion v. Court of Appeals
RFR
• Cannot be enforced by specific performance
Not being a Contract, it lacks essence of
“consensuality,” “obligatory force” or “mutuality”
• Breach allows recovery of damage based on Art. 19
principle of “Abuse of right”
24
DOCTRINES ON RFR cont’d
Equatorial Realty Dev., Inc. v. Mayfair Theater
264 SCRA 483 (1996)
• Such RFR, when breached may be enforced, at the
Price at which Subject Matter sold to Third Party
25
DOCTRINES ON RFR cont’d
Parañaque Kings Enterprises v. CA
268 SCRA 727 (1997)
• RFR is complied with by first offering the Subject
Matter to the Optionee and negotiating for a Sale
There is no obligation to reach a sale,
obligation is to negotiate in good faith
26
AGREEMENTS TO ENTER INTO FUTURE SALE
OR SERIES OF SALES:
ESSENCE: Obligations “to do” To enter into a
Contract of Sale
(1) DISTRIBUTION/ SUPPLY AGREEMENT
An Agreement to enter into a series
of Contracts of Sale
- National Grains Authority v. IAC, 171 SCRA 131 (1989)
- Johannes Schuback v. Court of Appeals, 227 SCRA 719 (1993)
(2) MUTUAL PROMISES TO BUY AND TO SELL
(CONTRACTS TO SELL)
27
MUTUAL PROMISES TO BUY AND SELL
(CONTRACTS TO SELL)
28
PERFECTION STAGE
• PERFECTION HAPPENS WHEN A “CERTAIN
OFFER” HAS BEEN MET BY AN “ABSOLUTE
ACCEPTANCE”
• ESTABLISHES THE CONTRACTUAL PRINCIPLES OF:
CONSENSUALITY
MUTUALITY OR OBLIGATORY FORCE
RELATIVITY
29
FORM OF SALE
GENERALLY: None, because Sale is consensual
contract
2. Sale of Movables, at least P500
3. Sale of Immovables, at any price
Subject Matter
(a) Performance Must Price
Touch Upon
Cannot Cover “Other
Consideration”
(b) Must Involve/Compromise “Party Sought to
be Charged”
32
FORMS THAT VOID CONTRACT OF SALE:
SALE OF REALTY THROUGH AGENT:
1.
AGENT’S AUTHORITY MUST BE IN WRITING
OTHERWISE:
SALE VOID: - EVEN IF DEED OF SALE IN
WRITING and/or NOTARIZED
- EVEN IF THERE HAS BEEN
PARTIAL/ FULL PAYMENT
- EVEN IF THERE HAS BEEN
DELIVERY OF SUBJECT MATTER
- EVEN IF SALE REGISTERED
33
SALES OF IMMOVABLES
• PRIVATE DOCUMENT NEEDED TO BE ENFORCEABLE
BETWEEN PARTIES
EXCEPT: PARTIAL EXECUTION/WAIVER
2. MUST BE IN A PUBLIC INSTRUMENT
-TO BIND THE PUBLIC
-TO BE REGISTRABLE WITH REGISTRY OF DEEDS
3. FOR REAL ESTATE, MUST BE REGISTERED TO BE VALID
AND BINDING AGAINST THE WORD
(5) EXTINGUISHMENT
(3) REMEDIES
SPECIFIC PERFORMANCE CONVENTIONAL
(1) PERFORMANCE REDEMPTION
DELIVERY OF
RESCISSION (SALE A RETRO)
SUBJECT MATTER DOUBLE SALES RULE EQUITABLE
SUBDIVISION LOTS & MORTGAGES
PAYMENT OF PRICE LEGAL
CONDO UNITS RULES REDEMPTION
RECTO LAW
MACEDA LAW (4) CONDITIONS AND
WARRANTIES
(2) RISK OF LOSS EFFECTS OF CONDITIONS
EXPRESS WARRANTIES
IMPLIED WARRANTIES
35
OBLIGATIONS OF SELLER
1. TO PRESERVE THE THING WITH DILIGENCE OF A
GOOD FATHER OF A FAMILY
2. TO DELIVER THE SUBJECT MATTER
3. To DELIVER FRUITS, ACCESSORIES AND
ACCESSIONS
4. To COMPLY WITH WARRANTIES
OBLIGATIONS OF BUYER
1. TO PAY THE PRICE
2. TO ACCEPT DELIVERY OF SUBJECT MATTER
36
DELIVERY OF SUBJECT MATTER
TRADITION AS THE MODE
TO TRANSFER OWNERSHIP
- Actual or Physical Delivery
- Constructive Delivery
EXCEPTION: WHEN BUYER TAKES THE RISK
Produces the Same “Magic” of
Actual Delivery
CONSTRUCTIVE DELIVERY
CONSTITUTUM POSSESORIUM
TRADITIO BREVI MANU
TRADITIO LONGA MANU OR SYMBOLIC DELVERY
Public Instrument
DELIVERY FOR Transfer/Negotiation of the “Title”
INTANGIBLES Evidences the Intangible
Enjoyment of Rights and Privileges with
the consent of the Seller
DELIVERY THROUGH CARRIER
- FAS
- FOB
- CIF
DOCUMENTS TO TITLE
39
RULES ON DOUBLE SALES UNDER ART. 1544
FOR MOVABLES:
1.
First to Possess, in good faith
Oldest Title, in good faith
Then: “First in time, priority in rights”
2. FOR IMMOVABLES:
First to Register, in good faith
First to Possess, in good faith
Oldest Title, in good faith
Then: “First in time, priority in rights”
40
REQUISITES FOR ART. 1544 TO APPLY
Cheng v. Genato, 300 SCRA 722 (1998)
Not applicable to Contracts to Sell
42
DOCTRINES ON ART. 1544 DOUBLE SALES RULES
(a) Rules under Art. 1544 are addressed to the
Second Buyer, who is mandated to do
positive things if he hopes to win at all
43
DOCTRINES ON ART. 1544 cont’d
(b) First Buyer wins by virtue of greater
doctrine of “first in time, priority in rights”
(c) Second Buyer must register his purchase
while in good faith if he hopes to win:
(d) First Buyer, who is always in good faith,
when he registers ahead, wins became
second buyer in hopeless
(e) Even if Second Buyer was first to possess
in good faith, the subsequent registration
by First Buyer prevails
(g) However, knowledge of the Second Buyer
of the first sale, would place him not only
in bad faith, but would constitute
registration in favor of the First Buyer
45
DOCTRINES ON ART. 1544 cont’d
46
GLOBAL RULES ON DOUBLE SALE FOR REAL ESTATE
I. First to Register, in Good Faith and for Value, his
Purchase of Land registered under the Torrens
System wins, for registration is the “Operative
Act” (Does not matter whether he is First or
Second Buyer)
47
GLOBAL RULES ON DOUBLE SALE cont’d
• The Rules of Double Sale under Art. 1544 shall
apply, only when the requisites under Cheng v.
Genato are present, as follows:
1. First to Register in good faith
But this can only apply to unregistered
land, because Rule I applies to registered
land.
2. First to Possess in good faith, or
3. Oldest Title, in good faith
48
SALE AND DELIVERY BY NON-OWNER
SPECIAL RULES:
• Sale and Delivery, with subsequent
acquisition of title by owner (Art. 1434), ipso
jure transfers title to Buyer
• Sale by Co-Owner
- particular portion
- whole property
5. Estoppel on the Part of the True Owner (Art. 1426)
49
SALE AND DELIVERY BY NON-OWNER cont’d
• Sales by Court Authority
• Sales in Merchant Stores
• Sales by One Having Voidable Title Prior
to Annulment
• Sale under Documents of Title
50
RULES FOR DETERIORATION, FRUITS
AND IMPROVEMENTS
RULES HAVE NO APPLICATION IS SUBJECT
MATTER IS MERELY DETERMINABLE (Art. 1263)
2. AT TIME OF PERFECTION: Seller (Arts. 1493 and 1494)
52
SUBJECT MATTER LOST: cont’d
3. AFTER PERFECTION BUT BEFORE DELIVERY
Arts. 1164, 1189, and 1262(
LOSS BY FORTUITOUS EVENT: Two Schools of
Thought
Arts. 1480, 1163, 1164, 1165
Arts. 1504, 1538, and 1189
53
SUBJECT MATTER LOST: cont’d
4. AFTER DELIVERY: BUYER BEARS RISK, UNDER
Res Perit Domino
54
REMEDIES FOR CONTRACTS OF SALE
1. REMEDIES OF “UNPAID SELLER” OF GOODS
• Special Right of Resale (Art. 1533)
• Special Right to Rescind (Art. 1534)
55
2. RECTO LAW: SALES OF MOVABLES ON INSTALLMENTS
(c) Nature of Remedies of Unpaid Seller
Remedies under Art. 1484 are not cumulative, but
alternative and exclusive.
Borbon II v. Servicewide Specialists, Inc., 258 SCRA 634 (1996)
Seeking a writ of replevin consistent with all three
remedies
Universal Motors Corp. v. Dy Hian Tat, 28 SCRA 161 (1969)
56
RECTO LAW: cont’d
(d) REMEDY OF SPECIFIC PERFORMANCE: No bar to full
recovery
Tajanglangit v. Southern Motors, 101 Phil. 606 (1957)
57
RECTO LAW: cont’d
NATURE OF REMEDY OF RESCISSION
(e)
• Inherent “Barring” Effect of Rescission
• Surrender of mortgaged property not
equivalent to rescission.
Vda. de Quiambao v. Manila Motors Co., Inc.,
3 SCRA 444 (1961)
58
RECTO LAW: cont’d
(f) REMEDY OF FORECLOSURE
(i) Third Party Mortgage
Ridad v. Filipinas Investment, 120 SCRA 246 (1983)
(ii) Assignor-Assignee; Financing Transactions
Zayas v. Luneta Motors, 117 SCRA 726 (1982)
59
RECTO LAW: cont’d
(iii) H-V “Barring” Effects of Foreclosure
(iv) Amounts Barred from Recovery
Macondray & Co. v. Eustaquio, 64 Phil. 446 (1937)
(v) Perverse Buyer
Filipinas Investment & Finance Corp. v. Ridad, 30 SCRA 564 (1969)
60
RECTO LAW: cont’d
PURPORTED LEASE WITH OPTION TO BUY:
(g)
“Contracts purporting to be leases of personal property
with option to buy, when the lessor has deprived the lessee
of the possession or enjoyment of the thing.” (Art. 1485)
61
3. MACEDA LAW: SALES OF RESIDENTIAL REALTY
ON INSTALLMENTS (R.A. 6552)
(a) “Role” of Maceda Law
Lagandaon v. CA, 290 SCRA 463 (1998)
(b) Transactions Covered
BUT SEE: People’s Ind’l and Comm. Corp. v. CA, 281 SCRA 206 (1997)
62
MACEDA LAW cont’d
63
MACEDA LAW cont’d
Pursuant to Art. 1253 of Civil Code, in a contract
involving installments with interest chargeable against the
remaining balance of the obligation, it is the duty of the
creditor-seller to inform the debtor-buyer of the interest that
falls due and that is applying the installment payments to
cover said interest. Otherwise, the creditor cannot apply the
payments to the interest and then hold the debtor in default for
non-payment of installments on the principal.
Rapanut v. CA, 246 SCRA 323 (1995)
(c) How Cancellation of Contract Can Be Effected:
Active Realty & Dev. Corp. v. Daroya, 382 SCRA 152 (2002)
64
MACEDA LAW cont’d
OTHER RIGHTS GRANTED TO BUYER
(a) To sell/assign his rights to another person
(a) ANTICIPATORY BREACH (ART. 1591)
(b) RESCISSION ON SALE ON NON-
RESIDENTIAL REALTY ON
INSTALLMENTS (Arts. 1191 and 1592)
(c) SEC. 23 AND 24, PRES. DECREE 957
66
CONTRACTS TO SELL
Versus
CONDITIONAL CONTRACTS OF SALE
Both Contracts are usually bound by same
condition: Full payment of the Price
67
K TO SELL VS. K OF SALE cont’d
Power to Rescind is inherently Judicial
Rescission requires a positive act
Substantial Breach Relevant to Contract of
Sale, Irrelevant to Contracts to Sell
68
K TO SELL VS. K OF SALE cont’d
1. In Contract to Sell Ownership if Reserved by
Seller, while in a Contract to Sell ownership
transfers to Buyer upon delivery.
• To execute a formal Deed of Sale
• Only receipt of payment evidences sale
• Seller retained original titles
69
K TO SELL VS. K OF SALE cont’d
2. “Rescission” of Contract to Sell is a matter
of right upon non-happening of the
condition
Ergo: K to Sell must have express
right to rescind the contract
upon default of the Buyer
A written notice of “cancellation” must be served
upon Buyer even when Contract to Sell
UP v. Delos Angeles, 35 SCRA 103 (1970)
70
CONDITIONS versus WARRANTIES
Power Commercial and Industrial Corp. v. CA
274 SCRA 597 (1997)
(a) Condition goes into root of existence of obligation,
whereas warranty goes into performance of such
obligation, and in fact may constitute an obligation
itself;
(b) Condition must be expressly stipulated by parties,
while warranty may form part of the obligation or
contract by provision of law, without previous
agreement; and
(c) Condition may attach itself either to the Obligations
of Seller, while warranty, express or implied, relates
to the Subject Matter itself or to the obligations of
Seller as to Subject Matter of the sale.
71
CONDITIONS AND WARRANTIES cont’d
Failure to comply with condition imposed upon perfection
of the contract results in failure of a contract, while the
failure to comply with a condition imposed on the
performance of an obligation only gives the other party the
option either to refuse to proceed with sale or waive the
condition.
Laforteza v. Machuca, 333 SCRA 643 (2000)
73
CONDITIONS AND WARRANTIES cont’d
IMPLIED WARRANTIES (Art. 1547)
B.
1. SELLER HAS RIGHT TO SELL
2. WARRANTY AGAINST EVICTION
74
CONDITIONS AND WARRANTIES cont’d
WARRANTY AGAINST NON-APPARENT
3.
SERVITUDES
WARRANTY AGAINST HIDDEN DEFECTS
4.
75
CONDITIONS AND WARRANTIES cont’d
Nutrimix Feeds Corp. v. CA
441 SCRA 357 (2004)
A hidden defect is one which is unknown or could not
have been known to the buyer. Under the law, the requisites
to recover on account of hidden defects are as follows:
a. Defect must be hidden;
b. Must exist at the time the sale was made;
c. Must ordinarily have been excluded from the contract;
d. Defect, must be important (render the thing unfit or
considerably decreases fitness);
e. Action must be instituted within statute of limitations.
76
Investments & Dev., Inc. v. CA, 162 SCRA 636 [1988]
CONDITIONS AND WARRANTIES cont’d
5. REDHIBITORY DEFECTS OF ANIMALS
a. Sale of a Team
b. Animals Sold at Fairs or Public Auction
c. Sale of Animals with Contagious Diseases
d. Sale of Unfit Animals
IMPLIED WARRANTIES IN THE SALE OF GOODS
6.
a. Warranty as to Fitness or Quality
b. Sale of Goods by Sample
77
CONDITIONS AND WARRANTIES cont’d
EFFECTS OF WARRANTIES
C.
EFFECTS OF WAIVERS
D.
G. BUYER'S OPTIONS IN CASE OF BREACH OF WARRANTY
78
EXTINGUISHMENT OF SALE
SALE EXTINGUISHED BY SAME MODES
APPLICABLE TO ALL CONTRACTS
Arts. 1231, 1600
79
CONVENTIONAL REDEMPTION
(SALE WITH A RIGHT TO REPURCHASE)
NATURE OF RIGHT TO REPURCHASE:
Reserved by Seller at the point of
Perfection.
Art. 1601
Villarica v. CA, 26 SCRA 189 (1968)
80
CONVENTIONAL REDEMPTION cont’d
Its Validity is Tied to the Validity of the Contract
of Sale to which appended.
Nool v. Court of Appeals, 276 SCRA 149 (1997)
81
RIGHT A RETRO versus OPTION CONTRACT
(A) Not separate contract, but (A) Generally principal contract,
must be part of main but may be appended in
Contract of Sale another contract valid
PERIOD OF REDEMPTION:
(a)
When no Period agreed upon: 4 years
When Period agreed upon: cannot
exceed 10 years
When Period of “Non-Redemption”
Stipulated
Anchuel v. IAC, 147 SCRA 434 (1987)
Tayao v. Dulay, 13 SCRA 758 (1965)
83
SALIENT MATTERS ON RIGHT OF
REDEMPTION cont’d
Pendency of Action Tolls Redemption
Period
Ong Chua v. Carr, 53 Phil. 975 (1929)
Non-Payment of Price Does Not Affect
Running of Redemption Period
Catangcatang v. Legayada, 84 SCRA 51 (1978)
84
SALIENT MATTERS cont’d
HOW REDEMPTION EFFECTED:
(b)
Only tender of payment is sufficient.
Legaspi v. CA, 142 SCRA 82 (1986)
Consignation is not required after tender is
refused.
Mariano v. CA, 222 SCRA 736 (1993)
But when tender not possible, consignation
should be made.
Catangcatang v. Legayada, 84 SCRA 51 (1978)
85
SALIENT MATTERS cont’d
Simply by Filing Judicial Action
Lee Chuy Realty Corp. v. CA, 250 SCRA 596 (1995)
Seller returning to Buyer:
Price of the sale
Expenses of contract, and any other
legitimate payments made by reason of the
sale
Necessary and useful expenses made on
the thing sold
ART. 1616
86
SALIENT MATTERS cont’d
When Redemption Not Made, Buyer a retro
automatically acquires full ownership.
Oviedo v. Garcia, 40 SCRA 17 (1971)
If Seller proves the transaction a sale a retro, he
is given a period of 30 days from finality of
judgment to repurchase.
Solid Homes v. CA, 275 SCRA 267 (1997).
87
EQUITABLE MORTGAGE
DEFINITION AND ELEMENTS
88
EQUITABLE MORTGAGE cont’d
RATIONALE OF EQUITABLE MORTGAGE
PRINCIPLE
89
RULINGS ON EQUITABLE MORTGAGE
90
Pactum Commissorium principle does not
apply:
(a) When security for a debt is also money in form of
time deposit
Consing v. CA, 177 SCRA 14 (1989)
91
RULINGS ON EM cont’d
92
REMEDIES UNDER EQUITABLE MORTGAGE
SITUATIONS
93
REMEDIES IN EM cont’d
Additional 30-day Period of Redemption is
allowed under Art. 1606, in event courts should
find the sale was not equitable mortgage,
provided:
(a) Honestbelief that it was equitable mortgage supported
by convincing evidence, such as badges under Art. 1602,
or consignation during trial of the amount of the alleged
loan
Abilla v. Gobonseng, 374 SCRA 51 (2002)
Vda. de Macoy v. CA, 206 SCRA 244 (1992)
94
LEGAL REDEMPTION
DEFINITION AND RATIONALE:
97
LEGAL REDEMPTION cont’d
98
INSTANCES OF LEGAL REDEMPTION
(a) Among Co-heirs (Art. 1088)
A co-heir cannot exercise the right of redemption
alone.
De Guzman v. CA, 148 SCRA 75 (1987)
100
INSTANCES OF LEGAL REDEMPTION cont’d
101
INSTANCES OF LEGAL REDEMPTION cont’d
(c) Among Adjoining Owners (Art. 1621-1622)
102
INSTANCES OF LEGAL REDEMPTION cont’d
(d) Sale of Credit in Litigation (Art. 1634) - 30 days
103
INSTANCES OF LEGAL REDEMPTION cont’d
104
INSTANCES OF LEGAL REDEMPTION cont’d
(f) Redemption in Tax Sales (Sec. 215, NIRC of 1997)
105
INSTANCES OF LEGAL REDEMPTION cont’d
(h) Redemption in Extrajudicial Foreclosure
One (1) year from registration in the Registry
of Deeds on Mortgage (Sec. 6, Act 3135).
106
INSTANCES OF LEGAL REDEMPTION cont’d
No right to redeem from a judicial foreclosure sale,
except those granted by banks or banking institutions
GSIS v. CFI, 175 SCRA 19 (1989).
108
INSTANCES OF LEGAL REDEMPTION cont’d
(k) Legal Right to Redeem under
Agrarian Reform Code