Possessory Lien Pactum Commissorium

- Creditor has the right to remain in - automatic appropriation by the creditor

possession of the property under the lien
until debtor satisfied his/her debt.
o Goods – sold w/stipulation to
credit.
o Goods – sold on credit but term of
credit expired.
o Buyer = insolvent
Redhibitory Action
- Action to avoid sale on account of some
vice/defect in the thing sold w/c renders its
use impossible – buyer not purchase if
known defect.
of the thing pledged or mortgaged upon
the failure of the debtor to pay the
principal obligation.
Grace Period
- period of time after a payment
becomes due, as of a loan or life-
insurance premium, before one is
subject to penalties or late
charges or before the loan or
policy is canceled.
Remedies under Recto Law

Barring Effect 1.) exact fulfillment by the purchaser of the

obligation
2.) Rescind or cancel sale
3.) Foreclose the mortgage on the
purchased personal prop
Unpaid Seller
Transactions excluded in the Maceda Law
- Whole of price = not paid
1.) Industrial lots
- BoE / Nego instrument = received as
2.) Commercial buildings
conditional payment &condition broken by
3.) Tenants under agrarian reform law
dishonor of instrument
Remedies (breach of sellers warranty)
Foreclosure
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- action of taking possession of a
mortgaged property when the mortgagor
fails to keep up their mortgage
payments.

Lease with option to purchase

- Agreement under which a lessee has

the right to purchase the leased item,
either at the end of the lease term or
within a specified period.