Extinguishment of a sales contract

1. In general

Extinguishment of sales contract:1) Same causes with extinguishment of all other obligations;2) Those causes under Title VI-Sales;3) Conventional redemption; AND4) Legal redemption

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. (Article 1600, Ibid.)

a. CONVENTIONAL REDEMPTION

Conventional redemption shall take place when the seller 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. (Article 1601, Ibid.)

Cross-referenced article/sThe seller cannot avail himself of the right of repurchase without returning to the buyer the price of the sale, and in addition:1) The expenses of the contract, and any other legitimate payments made by reason of the sale;2) The necessary and useful expenses made on the thing sold. (Article 1616, Ibid.)

Limitation of right to repurchase

⦁ By default: 4 years. The right referred to in Article 1601, in the absence of an express agreement, shall last four years from the date of the contract. (Article 1606, Ibid.)

⦁ If stipulated: 10-year limit. Should there be an agreement, the period cannot exceed ten years. (Paragraph 2, Article 1606, Ibid.)

However, the seller may still exercise the right to repurchase within thirty days from the time final judgment was rendered in a civil a...

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