Caro, Coleen Angelique D.

LAW1301-Sec 27

ASSIGNMENT 1

1. A offered to sell his house and lot for P10M to B, who was interested in buying the same. In
his letter to B, A stated that he was giving B a period of one month within which to raise the
amount, and that as soon as B is ready, they will sign the deed of sale. One week before the
expiration of the one-month period, A went to B, and told him that he is no longer willing to
sell the property unless the price is increased to P15M. May B compel A to accept the P10M
first offered, and execute the sale? GIVE Reason/s.

No, B cannot compel A to accept the first offered worth P10M and cannot execute
the sale because there is no consideration distinct from the price of P10M. As stated in the
Art. 1479 par. 2 “An accepted unilateral promise to buy or to sell a determinate thing for a
price certain is binding upon the promisor if the promise is supported by a consideration
distinct from the price.” Therefore, in this case, only if the promise is supported by a
consideration apart from the price that its acceptance will give rise to a perfected contract
then, B can compel A to sell his house. Furthermore, it was stated in the Obligations and
Contracts specifically under Art. 1324 that “When the offerer has allowed the offeree a
certain period to accept as a general rule the offer may be withdrawn anytime before
acceptance unless, the option is founded upon consideration as something paid or
promise.” In this case, A has the right to withdraw at any time the offer even before the
expiration of the period because there was no consideration made.

2. A sold to B land, which at the time of sale did not belong to A. Is the sale valid? GIVE
REASON/S.

No, the sale is void because the title of ownership does not belong to A at the time
of sale. As a general rule in rules of transferring ownership, at the time of the perfection of
the sale, the seller doesn't need to have the ownership, but it is required that the seller
has the ownership after the perfection of the contract of sale/ at the time of sold because
in the contract of sale seller obligates himself to transfer the ownership and to deliver the
determinate thing. Hence, if A is not the owner of the land at the time of sale, he won’t be
able to transfer the ownership to the B thus, the sale is void.

3. Your buyer bought a 200sqm subdivision lot at P3,000/sqm. He paid 25% down payment. The
balance is payable in 120 amortizations at 21% per annum. He has paid 84 monthly
amortizations totalling P737,612.20 inclusive of penalty interest of P32,000.

Compute for him his Cash surrender Value under the Maceda Law.

CSV Formula
Total payment x % of Refund = Refund or Cash Surrender Value
Down payment: 200sqm x P3,000/sqm x = P 150,000.00
25%
Amortization: (737,612.20-32,000) 705,612.20
Total Payment 855,612.20
x %RF x 60%
Cash Surrender Value or Refund P
513,367.32

4. S sold to B a car for P1M. The condition for the sale is for B to execute a chattel mortgage on
the thing sold. The term of the sale is for B to pay a down payment of P200,00 and the
balance to be paid on July 15, 2020. However, the balance was not paid by the buyer so S
 foreclosed the chattel mortgage on the thing sold. It was sold for P700,000. Can S recover the
deficiency? Give reason/s?
No, S cannot recover the deficiency because the seller has chosen to foreclose the
chattel mortgage on the thing sold. As stated in the Art. 1484 under the remedy of
foreclosure of a chattel mortgage, “the recovery of deficiency after foreclosure is forbidden
and that the seller shall have no further action against the vendee for the recovery of any
unpaid balance of the price and any agreement to the contrary is void.”

5. S sold to B a car for P1M. The condition for the sale is for B to execute a chattel mortgage on
the thing sold. The balance of 800,000 is payable in twenty equal installments. B defaulted on
the succeeding installments. S sued B for the collection of the balance and the court rendered
judgment in favor of S. S by execution of judgment sold the car for P700,000. Can S recover
the deficiency? Give reason/s?

Yes, S can recover the deficiency to B because the seller chosen the fulfillment
upon the buyer’s failure to pay. In accordance with the first remedy under Art. 1484, seller
has the right to recover not only the proceeds of the sale but, as well as the unpaid
balance of the price from the buyer.

6. S sold to B a car for P1M. The condition for the sale is for B to execute a chattel mortgage on
the thing sold. The balance of 800,000 is payable in twenty equal installments. B defaulted on
his 2 or more installments so S foreclosed the mortgage and sold it for P700,000. Can S
recover the deficiency? Give reason/s?

S cannot recover the P100,000 deficiency to B because S has chosen the remedy to
foreclose the chattel mortgage thus, S cannot run after the B as stated in the Art. 1484 in
a contract of sale of personal property, the price of which is payable in installments,
among the 3 remedies, the seller executed the remedy of foreclosure of the chattel
mortgage on the thing sold wherein the buyer failed to pay two or more installments thus,
“no further action against the buyer to recovery any unpaid balance of the price. Any
agreement to the contrary shall be void.”