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3 - Extinguishment of Sale
3 - Extinguishment of Sale
OF SALE
Atty. Kaye Patrice Apuyan -Chong
2 nd Semester SY 2021 -2022
Law 13 – Business Laws and Regulations
CAUSES OF EXTINGUISHMENT
1. Same causes as all other obligations;
o Rescission by the buyer in case of breach of warranty against hidden defects (Art.
1567)
o Resale by the buyer of sale of animals with redhibitory defects (Art. 1580)
• Where the period agreed upon is indefinite – within 10 years from the date
of contract.
• In case there is a civil action between the parties – 30 days from the time
the time the final judgement was rendered.
EFFECT OF FAILURE TO REDEEM
• Ownership is consolidated to the vendee.
• Every possessor whose right is derived from the vendee a retro (original
vendee), even if no mention is made in the second contract of the right to
repurchase, provided the right has been recorded in the Register of
Deeds, or even if the right is not registered, but the possessor has
knowledge of the existence of the right.
WHO MAY AVAIL OF THE RIGHT TO REPURCHASE
• The vendor a retro
-However, they cannot make use of the right of redemption against the
vendee, until after they have exhausted the property of thee vendor.
LEGAL REDEMPTION
• Also referred to as “retracto legal”, it is the right to be subrogated upon
the same terms and conditions stipulated in the contract, in the place of
one who acquires the thing by purchase or by dation in payment or by
other transaction whereby ownership is transmitted by onerous title.
INSTANCES OF LEGAL REDEMPTION
• Legal Redemption by a Co -Owner
- If a small piece of urban land which was bought for speculation has
been resold, the owner of the adjoining land has a right of redemption at
a reasonable price.
PERIOD OF REDEMPTION
• Within 30 days from written notice by vendor
EQUITABLE MORTGAGE
• One which lacks the proper formalities, form or words or other requisites
prescribed by law for a mortgage, but shows the intention of the parties
to make the property subject of the contract as security for a debt and
contains nothing impossible or contrary to law
ESSENTIAL REQUISITES OF EQUITABLE MORTGAGE
• Parties entered into a contract of sale
6. In any other case where the real intention of the parties is that the
transaction shall Secure the payment of a debt or the performance of
any other obligation.