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Extinguishment of Sale

There are three ways a sale can be extinguished according to the Civil Code: 1) by the same causes that extinguish other obligations, 2) by conventional redemption where the vendor reserves the right to repurchase, and 3) by legal redemption which allows certain parties like co-owners or adjacent landowners to substitute themselves in the sale. Conventional redemption requires the vendor to return the price paid plus expenses and legal stipulations, while legal redemption must be exercised within 30 days of notice of sale.

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Angelica Pagaduan
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100 views10 pages

Extinguishment of Sale

There are three ways a sale can be extinguished according to the Civil Code: 1) by the same causes that extinguish other obligations, 2) by conventional redemption where the vendor reserves the right to repurchase, and 3) by legal redemption which allows certain parties like co-owners or adjacent landowners to substitute themselves in the sale. Conventional redemption requires the vendor to return the price paid plus expenses and legal stipulations, while legal redemption must be exercised within 30 days of notice of sale.

Uploaded by

Angelica Pagaduan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Extinguishment of

Sale
How is a sale extinguished?
This provision of the New Civil Code has laid down
three instances on how a sale can be extinguished:

Art. 1600. Sales are extinguished by the same causes


as all other obligations, by those stated in the
preceding articles of this Title, and by conventional
or legal redemption.
What is conventional redemption?
Art. 1601. Conventional redemption shall take place when the
vendor reserves the right to repurchase the thing sold, with the
obligation to comply with the provisions of Article 1616 and
other stipulations which may have been agreed upon. (1507)

*Conventional redemption is the right which the vendor


reserves to himself, to reacquire the property sold provided he
returns to the vendee the price of the sale, expenses of the
contract, any other legitimate payments made therefore, the
necessary and useful expenses made on the thing sold and
fulfills other stipulations which may have been agreed upon.
What is Pacto de Retro sale?
Pacto de Retro sale refers to the sale wherein the seller has the
right to repurchase the subject matter or the property being
sold.The essence of a pacto de retro sale is that the title and
ownership of the property sold transfers immediately to the
vendee a retro. However it is still subject to the resolutory
condition of repurchase of the subject property by a vendor a
retro within the period agreed upon by them, or, in the absence
thereof, as provided by law or else it would vests upon the
vendee a retro absolute title and ownership over the property
sold by operation of law.
What is the redemption period for
pacto de retro sale?
*If there is an agreement: period agreed upon
cannot exceed 10 years and in the absence of the
period, 4 years from the date of the contract. The
vendor who fails to repurchase the property within
the period agreed upon may, however, exercise the
right to repurchase within 30 days from the time
final judgment was rendered in a civil action on the
basis that the contract was a true sale with right of
repurchase.
What is legal redemption?
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 transferred
by onerous title. It must be exercised within thirty
(30) days from the notice in writing by the vendor.
This does not apply to barter, donation, transmission
of things by hereditary title, mortgage, lease.
What is the time provided for the vendor
a retro to redeem or repurchase a thing?
1. If there is no agreement as to the period for redemption- 4
years from date of contract
2. If there is agreed period, it must be done within the fixed
period
3. If the parties agreed as to the period within which to
repurchase but have not fixed a definite period,- 10 years from
the date of the contract to redeem but shall not extend beyond
10 years
4. Vendor a retro may still exercise his right to redeem within
30 days from the time of the final judgment on the basis that
the contract was a true sale with right to repurchase.
What is the rules for legal redemption
by co-owner?
Requisites:

There is c-ownership
There is alienation of all or any of the shares
The sale was made to a stranger
The legal redemption was exercised before partition
What is the rules for legal redemption
by an adjacent owner?
Requisites:

Both lands are rural


The lands are adjacent to each other
There is an alienation
The land are is less than 1 hectare
Rights of adjacent owners:
1. Right of pre-emption which the preferential right to
buy the urban land before the same is sold to a third
person

2. In the event the urban land has been sold, the


adjacent owners have the right of redemption.

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