Friday

Sales - Finals

FINAL EXAMS IN SALES



I

Juliet offered to sell her house and lot, together with all the furniture and appliances therein, to Dehlma. Before agreeing to purchase the property, Dehlma went to the Register of Deeds to verify Juliet’s title. She discovered that while the property was registered in Juliet’s name, it was mortgaged to Elaine to secure a debt of P80,000.00. Wanting to buy the property, Dehlma told Juliet to redeem the property from Elaine, and gave her an advance payment to be used for purposes of releasing the mortgage on the property. When the mortgage was released, Juliet and Dehlma executed a deed of sale. The sale was duly registered and a new TCT was issued in the name of Dehlma. Immediately, Dehlma took possession of the house and lot. Later, however, when Dehlma went to the Assessor’s office to get a new tax declaration, she discovered that the same property was already declared for tax purposes by XYZ Bank who was a buyer in the foreclosure sale. At that time, the property was not yet registered in Dehlma’s name so XYZ succeeded in registering the Sheriff’s Deed of Conveyance in its name.


Who as between Dehlma and XYZ Bank has a better right to the house and lot? (10 points)

II


Filemon and Edna Garcia are newlyweds. They bought a house last month in Antipolo City. They examined the house twice before agreeing to buy the same for P450,000.00. One week after moving in, a storm hit Antipolo City. During the storm, the Spouses Garcia discovered not less than ten leaks in the ceiling.

 (a) Can they sue the seller for breach of warranty? (5 points)

 (b) Will your previous answer he the same if Filemon and Edna Garcia were merely leasing the house? (5 points)

III


Michael is 18 years old. His next-door neighbor Larry, a 12-year old boy, offered to sell him a Portable Playstation for P8,500.00 which Michael accepted. Upon seeing the PSP, Michael’s father took it and returned the same to Larry’s father and asked for the return of the P8,500.00.

May Michael’s father validly demand the return of the P8,500.00? (10 points)

IV


A foreign manufacturer of computers and a Philippine distributor entered into a contract whereby the distributor agreed to order 1,000 units of the manufacturer’s computers every month and to resell them in the Philippines at the manufacturer’s suggested prices plus 10%. All unsold units at the end of the year shall be bought back by the manufacturer at the same price they were ordered. The manufacturer shall hold the distributor free and harmless from any claim for defects in the units.

Is the agreement one for sale or agency? (10 points)

V


Using a falsified manager’s check, Julia, bought a Toyota car from United Car  Sales. The car was delivered the same day. When the seller presented the check for payment, the check bounced. Unfortunately, Julia was nowhere to be found. Meanwhile, the car had been sold and delivered by Julia to Romeo, who knew nothing about the falsified check. When this was learned by United Car Sales, it filed an action for recovery of the car against Romeo.

Should the suit prosper? (10 points)

VI


Differentiate a sale of real property for a lump sum and a sale of real property in unit measure. (10 points)

VII


In December 2006, Ed Ruiz and Wallace Industries executed a Deed of Conditional Sale wherein the former agreed to sell his 5 hectare land to the latter for the price of PlO million payable P6 million down and the balance 60 days after the squatters in the property have been removed by Ed Ruiz. Subsequently, Ed Ruiz filed ejectment suits against the squatters, but in spite of the decisions in his favor, the squatters would not vacate. Thus, Ed Ruiz offered to return the P6 million downpayment to Wallace Industries due to his inability to remove the squatters. When Wallace Industries refused, Ed Ruiz consigned the money in court and filed a case for judicial rescission.

Is the action for rescission meritorious? (10 points)

VIII


Ermelinda is a single mother of six. She owns a real property situated in Sta. Maria, Bulacan. In 2001, she mortgaged the property to her friend, Arlene, as security for a loan in the amount of P500,000.00. One year later, when Ermelinda could not pay for the loan, she and Arlene executed a Deed of Absolute Sale with Right of Repurchase over the mortgaged property, for a consideration of P300,000.00.

(a) In law and equity, what is the nature of the contract entered into by Ermelinda and Arlene? Why? (5 points)

(b) In case the sale is annulled by the court, what can Arlene do to protect her interests? (5 points)

IX


It’s SM’s 3-day Sale once again. While shopping, you found a blazer with a price tag of P199.95. When you went to pay for it, the cashier said it cost P799.95. Should the store sell the blazer to you for the price marked on the tag? (10 points)

X


(a) What is legal redemption? (5 points)

(b) What are the requisites for the exercise of legal redemption by a co-owner? (5 points)


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