Jambrich, an Austrian, fell in-love and lived together with Descallar and bought their houses and lots

at Agro-Macro Subdivision. In the Contracts to Sell, Jambrich and Descallar were referred to as the
buyers. When the Deed of Absolute Sale was presented for registration before the Register of
Deeds, it was refused because Jambrich was an alien and could not acquire alienable lands of the
public domain. After Jambrich and Descallar separated, Jambrich purchased an engine and some
accessories for his boat from Borromeo. To pay for his debt, he sold his rights and interests in the
Agro-Macro properties to Borromeo.
Borromeo discovered that titles to the three (3) lots have been transfereed in the name of Descallar.
Who is the rightful owner of the properties? Explain. (5%)

Eulalia was engaged in the business of buying and selling large cattle. In order to secure the
financial capital, she advanced for her employees (biyaheros). She required them to surrender TCT
of their properties and to execute the corresponding Deeds of Sale in her favor. Domeng Bandong
was not required to post any security but when Eulalia discovered that he incurred shortage in cattle
procurement operation, he was required to execute a Deed of Sale over a parcel of land in favor of
Eulalia. She sold the property to her grandneice Jocelyn who thereafter instituted an action for
ejectment against the Spouses Bandong.
To assert their right, Spouses Bandong filed an action for annulment of sale against Eulalia and
Jocelyn alleging that there was no sale intended but only equitable mortgage for the purpose of
securing the shortage incurred by Domeng in the amount of P 70, 000.00 while employed as
"biyahero" by Eulalia. Was the Deed of Sale between Domeng and Eulalia a contract of sale or an
equitable mortgage? Explain. (5%)

A contract to sell is the same as a conditional contract of sale. Do you agree? Explain your answer.
(5%)

dux leased his house to Iris for a period of 2 years, at the rate of P25,000.00 monthly,
payable annually in advance. The contract stipulated that it may be renewed for another
2-year period upon mutual agreement of the parties. The contract also granted Iris the
right of first refusal to purchase the property at any time during the lease, if Dux decides
to sell the property at the same price that the property is offered for sale to a third party.
Twenty-three months after execution of the lease contract, Dux sold the house to his
mother for P2 million. Iris claimed that the sale was a breach of her right of first refusal.
Dux said there was no breach because the property was sold to his mother who is not a
third party. Iris filed an action to rescind the sale and to compel Dux to sell the property

to her at the same price. Alternatively, she asked the court to extend the lease for
another 2 years on the same terms.

a) Can Iris seek rescission of the sale of the property to Duxs mother? (3%)

b) Will the alternative prayer for extension of the lease prosper? (2%)