Quiz - Extinguishment of Sale

It is a cause of extinguishment of sale wherein it means the extinguishment of all other contracts.

It is a cause of extinguishment of sale wherein it is recognized by the law of sales

It is a cause of extinguishment of sale wherein it is given special discussion by the Civil Code

It is the right which the vendor reserves to reacquire the property sold provided the vendor reimburses the vendee of the price, the expenses of the contract, any other legitimate payments made therefor and the necessary and useful expenses made on the thing sold and fulfills other stipulations which may have been agreed upon.

It shows the intention of the parties to make the property subject of the contract as a security for the fulfillment of an obligation

The contract shall be presumed to be an equitable mortgage, in any of the following cases: (Choose the incorrect statement)

• when the price of a sale with right to repurchase is unusually inadequate

• when the vendor remains in possession as lessee or otherwise

• when upon or after the expiration of the right to repurchase another instrument extending the period of redemption or granting a new period is executed

• when the purchaser does not retain a part of the purchase price

The contract shall be presumed to be an equitable mortgage, in any of the following cases: (Choose the incorrect statement)

• when the purchaser retains a part for himself of the purchase price

• when the vendor binds himself to pay the taxes on the thing sold

• the real intention of the parties is that the transaction shall secure payment of a debt or the performance of any other obligation

• when the vendee binds himself to pay the taxes on the thing sold

In a contract of sale with pacto de retro, the price is usually less than in absolute sales for the reason that

• in the former, the vendor expects to reacquire or to redeem the property sold and thus recover the loss the vendor claims suffered by reason of the inadequacy of the price

• in the former, the vendee expects to reacquire or to redeem the property sold and thus recover the loss the vendor claims suffered by reason of the inadequacy of the price

• in the former, the vendor does not expect to reacquire or to redeem the property sold and thus recover the loss the vendor claims suffered by reason of the inadequacy of the price

• in the former, the vendor expects to reacquire or to redeem the property sold and thus recover the loss the vendor claims suffered by reason of the adequacy of the price

What is the presumption in case of doubt?

• Equitable mortgage is favored by law. A contract purporting to be a sale with the right to repurchase shall still be regarded as an equitable mortgage.

• Equitable mortgage is favored by law. A contract purporting to be a sale with the right to repurchase shall not be regarded as an equitable mortgage.

• Equitable mortgage is favored by parties. A contract purporting to be a sale with the right to repurchase shall still be regarded as an equitable mortgage.

• Equitable mortgage is favored by law. A contract purporting to be a mortgage with the right to repurchase shall be regarded as a sale.

Presumption, an exception to the general rule

• that doubts affecting an onerous contract shall be settled in favor of the greatest reciprocity of interests

• that doubts affecting an onerous contract shall be settled in favor of the greater reciprocity of interests

• that doubts affecting a gratuitous contract shall be settled in favor of the greatest reciprocity of interests

• that doubts affecting an onerous contract shall be settled in favor of the least reciprocity of interests