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C. Remedies of Seller
Situation Remedy
Seller fails to deliver Seller fails to deliver specific a) Action for specific performance
specific goods goods
Breach of seller’s Breach of seller’s warranty Either:
warranty a) Accept or keep the goods and set up against
the seller, the breach of warranty by way of
recoupment in diminution or extinction of
the price
b) Accept or keep the goods, and maintain an
action against the seller for damages for the
breach of warranty
c) Refuse to accept the goods and maintain an
action against the seller for damages for
breach of warranty
d) Rescind the sale and refuse to receive the
goods or if the goods have already been
received, return them or offer to return them
to the seller and recover the price or any
part thereof which has been paid.
IN LAYMAN’S TERMS:
a) Accept the goods and ask for a discount
b) Accept the goods and sue for damages
c) Don’t accept and sue for damages
Rescind the sale and don’t accept, and if it’s already
been received, return it.
Suspension of Buyer is disturbed in the Suspend the payment of the price until the seller has
Payments in possession/ownership of the thing caused the disturbance or danger to cease, unless the
Anticipation of acquired, or he has reasonable seller gives security for the return of the price in a
Breach grounds to fear such disturbance proper case
by a vindicatory action or a
foreclosure of mortgage
Other notes:
- Recto law doesn’t apply to a situation where there is an initial payment and a balance payable in the future
because it’s not actually an installment, but a “straight sale”
- Recto law also do not apply when there is only one payment to be paid in the future (kasi nga installments,
so it contemplates several payments)
- Contracts to sell movables are not covered.
- Remedies are alternative and not cumulative (exercise of one would bar the exercise of the other). Bawal din
simultaneous.
- What’s a perverse-buyer-mortgagor? – this is when a defaulting buyer-mortgagor refuses to surrender the
chattel to the seller to allow the latter to be able to proceed with foreclosure. The seller, even after actual
foreclosure, may be allowed to recover expenses and attorney’s fees in trying to obtain possession of the
chattel
A. Remedies of Seller
Situation Remedy
Anticipatory breach – seller has reasonable grounds to Sue for rescission of the sale
fear the loss of the immovable property sold
Failure of buyer to pay the price in full within a fixed Action to collect the balance
period Rescind the sale upon judicial or notarial
demand
B. Remedies of Buyer
Situation Remedy
Buyer is disturbed in the possession or ownership of the Buyer may suspend the payment of the price until the
thing acquired, or has reasonable grounds to fear such seller has caused the disturbance or danger to cease,
disturbance, by vindicatory action or a foreclosure of unless the seller gives a security for the return of the
mortgage price in a proper case, or it has been stipulated that,
notwithstanding any such contingency, the buyer shall
be bound to make payment.
Grace period – can only be exercised by the buyer once every five years of the life of the contract.
Cancellation of Contract
Cancellation shall take place after 30 days from receipt by the buyer of the notice of cancellation or
demand for rescission by a notarial act and upon full payment of the cash surrender value to the buyer.