Extinguishment of Sale: How to Terminate a Sales Contract

Extinguishment of sale in general

In general, a sales contract may be extinguished by the same causes as all other obligations and by conventional or legal redemption.[1]

Conventional redemption

Conventional redemption happens “when the vendor reserves the right to repurchase the thing sold, with the obligations to comply with the provisions of Article 1616[2] and other stipulations which may have been agreed upon.”[3] The right to repurchase lasts only for four years from date of the contract unless otherwise stipulated.[4] If there is an express agreement to extend the right to repurchase, it cannot exceed 10 years.[5]

Continue reading here.

Conditions and warranties in sale on seller

Sales contract with suspensive condition

If the sales contract is under a suspensive condition which is not met, the innocent party may refuse to proceed with the contract or he may waive performance of the condition.[1]

Breach of warranty

In addition to the above rule, the innocent party may also consider the non-performance of the condition as a breach of warranty if the other party has promised that the condition should happen or be performed.[2]

Continue reading here.

Rolando S. Abadilla, Jr. v. Sps. Bonifacio P. Obrero

A title issued under the Torrens system is entitled to all the attributes of property ownership, which necessarily includes possession.

G.R. No. 199448, 12 November 2014

Complainant Sps. Bonifacio P. Obrero and Bernabela N. Obrero initiated a case for forcible entry against defendant Rolando S. Abadilla, Jr. Complainants claimed that they are the registered owners of the land in question based on a TCT registered under the name. Continue reading here.