Professional Documents
Culture Documents
RIGHT OF REDEMPTION:
Art. 1606. The right referred to in Article 1601, in the
absence of an express agreement, shall last four years from
the date of the contract.
Should there be an agreement; the period cannot exceed ten
years.
However, the vendor may still exercise the right to
repurchase within thirty days from the time final judgment
was rendered in a civil action on the basis that the contract
was a true sale with right to repurchase. (1508a)
TIME WITHIN WHICH TO REDEEM:
1. No time agreed upon 4 years from date of
contract
2. Time agreed upon period cannot exceed 10
years
Art. 1608. The vendor may bring his action against every
possessor whose right is derived from the vendee, even if in
the second contract no mention should have been made of
the right to repurchase, without prejudice to the provisions of
the Mortgage Law and the Land Registration Law with
respect to third persons. (1510)
Art. 1609. The vendee is subrogated to the vendor's rights
and actions. (1511)
RIGHTS OF VENDOR TRANSFERRED TO THE VENDEE:
a. Right to mortgage the property
b. Right to continue prescription
c. Right to receive fruits
Art. 1610. The creditors of the vendor cannot make use of
the right of redemption against the vendee, until after they
have exhausted the property of the vendor. (1512)
NOTES:
The period of redemption may be extended as
long as the total period should not exceed 10
years.
EXAMPLE:
Judgment day November 10
Period to Appeal 15 days (November 25)
November 26 Judgment becomes final and executory
Art. 1607. In case of real property, the consolidation of
ownership in the vendee by virtue of the failure of the vendor
to comply with the provisions of article 1616 shall not be
recorded in the Registry of Property without a judicial order,
after the vendor has been duly heard. (n)
IS THERE A NECESSITY OF A JUDICIAL ORDER FOR
THE CONSOLIDATION ITSELF?
NO. Because the ownership is consolidated by
the mere operation of the law upon failure of the
seller to fulfill what is prescribed for
redemption.
The vendee shall irrevocably acquire ownership
of the thing sold
The vendor loses his rights over the property by
the same token
the vendee, but he shall respect the leases which the latter
may have executed in good faith, and in accordance with the
custom of the place where the land is situated. (1520)
The property should be freed generally from
charges and mortgages
The buyer a retro may mortgage the property,
because he acquires the right o the vendor, BUT
when the thing is redeemed, the vendee must
free it first from mortgage.
If a buyer a retro retains the property although a
redemption has been made, he shall be liable for
damages such as rentals for continued use of
the property.
SECTION 2. - LEGAL REDEMPTION
Art. 1619. Legal redemption is the right to be subrogated,
upon the same terms and conditions stipulated in the
contract, in the place of one who acquires a thing by
purchase or dation in payment, or by any other transaction
whereby ownership is transmitted by onerous title. (1521a)
Legal Redemption the right t 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 any other transaction whereby ownership
is transmitted by onerous title.
LEGAL REDEMPTION, HOW ACQUIRED:
a. Purchase
b. Dation en payment
c. Any other transaction whereby ownership
is transmitted by onerous title.
EXAMLES OF LEGAL REDEMPTION:
1. Art. 1088 Should any of the heirs sell his
hereditary rights to a stranger before the partition,
any or all of the co-heirs may be subrogated to the
rights of the purchaser by reimbursing him for the
price of the sale, provided they do so within the
period of one month from the time they were
notified in writing of the sale of the vendor.
Pre-emption and Redemption Distinguished:
PRE-EMPTION
REDEMPTION
Arises before the sale
Arises after the sale
No rescission because no There can be rescission of
sale as yet exists
the original sale
The action here is directed The action here is directed
against prospective seller
against the buyer
2 rural lands
Area does not exceed 1 has.
The land is alienated
The owner the adjoining land of smaller area
shall be preferred
5. If both lands have the same area, the one who
first requested the redemption
Art. 1622. Whenever a piece of urban land which is so small
and so situated that a major portion thereof cannot be used
for any practical purpose within a reasonable time, having
CHAPTER 8
ASSIGNMENT OF CREDITS AND OTHER INCORPOREAL
RIGHTS
Art. 1624. An assignment of creditors and other incorporeal
rights shall be perfected in accordance with the provisions of
Article 1475. (n)
Whatever rights o the
assignor will be
transferred to the assignee .
Perfection of assignment of credit:
Art. 1475: Meeting off the minds, object, price
Art. 1625. An assignment of a credit, right or action shall
produce no effect as against third person, unless it appears
in a public instrument, or the instrument is recorded in the
Registry of Property in case the assignment involves real
property. (1526)
Effectivity against 3rd persons:
guaranty
mortgage
pledge
Preference
CHAPTER 9
GENERAL PROVISIONS
Art. 1636. In the preceding articles in this Title governing the
sale of goods, unless the context or subject matter otherwise
requires:
(1) "Document of title to goods" includes any bill
of lading, dock warrant, "quedan," or
warehouse receipt or order for the delivery of
goods, or any other document used in the
ordinary course of business in the sale or
transfer of goods, as proof of the possession or
control of the goods, or authorizing or
purporting to authorize the possessor of the
document to transfer or receive, either by
endorsement or by delivery, goods represented
by such document.
(2) "Goods" includes all chattels personal but not
things in action or money of legal tender in the
Philippines. The term includes growing fruits or
crops.
(3) "Order" relating to documents of title means an
order by endorsement on the documents.
(4) "Quality of goods" includes their state or
condition.
(5) "Specific goods"
(6) means goods identified and agreed upon at the
time a contract of sale is made.
An antecedent or pre-existing claim, whether for
money or not, constitutes "value" where goods or
documents of title are taken either in satisfaction
thereof or as security therefor.
(7) A person is insolvent within the meaning of
this Title who either has ceased to pay his
debts in the ordinary course of business or
cannot pay his debts as they become due,
whether insolvency proceedings have been
commenced or not.
(8) Goods are in a "deliverable state" within the
meaning of this Title when they are in such a
state that the buyer would, under the contract,
be bound to take delivery of them. (n)
Art. 1637. The provisions of this Title are subject to the rules
laid down by the Mortgage Law and the Land Registration
Law with regard to immovable property. (1537a)
DEFINITION OF TERMS:
ASSIGNMENT OF CREDIT - the process of transferring the
right of the assignor to the assignee, who would
then be allowed to go against the debtor. It
may be done either gratuitously or onerously