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X. ACTIONS & REMEDIES FOR BREACH OF AGREEMENT C. SPECIAL LAWS -…

- - - - POLICY: PROTECT FROM
        ONEROUS & OPPRESSIVE CONDITIONS
        Section 2. It is hereby declared a public policy to protect buyers of real estate on installment payments against onerous and oppressive conditions.
        
        AFTER 2 YRS WORTH PAYMENT:
        
        REAL ESTATE SALE/FINANCING
        
        INSTALLMENTS
        a. 2 YRS PAID
        b. DEFAULT ON SUCCEEDING ONES
        Section 3. In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants under Republic Act Numbered Thirty-eight hundred forty-four, as amended by Republic Act Numbered Sixty-three hundred eighty-nine,
        where the buyer has paid at least two years of installments,
        the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:
        
        SALE/ASSIGN/REINSTATE REQS:
        
        UPDATE ACC:
        a. DURING GRACE
        b. BEFORE ACTUAL CANCELLATION
        
        NOTARIZE
        Section 5. Under Section 3 and 4, the buyer shall have the right to sell his rights or assign the same to another person or to reinstate the contract by updating the account during the grace period and before actual cancellation of the contract. The deed of sale or assignment shall be done by notarial act.
        
        ADVANCED PAYMENT
        BALANCE or INSTALLMENT
        WITHOUT INTEREST
        Section 6. The buyer shall have the right to pay in advance ANY installment or the full unpaid balance of the purchase price any time without interest and to have such full payment of the purchase price annotated in the certificate of title covering the property.
        
        CONTRARY TO SECS 3-6:
        NULL & VOID
        Section 7. Any stipulation in any contract hereafter entered into contrary to the provisions of Sections 3, 4, 5 and 6, shall be null and void.
        
        SAVING CLAUSE
        Section 8. If any provision of this Act is held invalid or unconstitutional, no other provision shall be affected thereby.
        
        1 more item...
        
        ANNOTATE PAYMENT
        ...to have such full payment of the purchase price annotated in the certificate of title covering the property
        
        GRACE PERIOD
        WITHIN: 1-MO/1YR PAID
        (a) To pay, without additional interest,
        the unpaid installments due
        within the total grace period earned by him which is hereby fixed at the rate of
        one month grace period for every one year of installment payments made:
        
        CANCELLED -> REFUND CSV (50% TP)
        5 YRS PAST -> +5%/YR
        90% TP MAX
        (b) If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty per cent of the total payments made,
        and,
        after five years of installments, an additional five per cent every year but not to exceed ninety per cent of the total payments made:
        
        COUNTED AS INSTALLMENT;
        
        DOWNPAYMENT
        
        DEPOSIT
        
        OPTIONS
        Down payments, deposits or options on the contract shall be included in the computation of the total number of installment payments made.
        
        "Options?"
        
        CANCELLATION REQS:
        
        30 DAYS AFTER NOTICE/DEMAND
        
        NOTARIZED
        
        FULL PAYMENT OF CSV
        Provided, That the actual cancellation of the contract shall take place
        after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract
        by a notarial act and
        upon full payment of the cash surrender value to the buyer.
        
        LIMIT:
        EVERY 5 YEARS
        Provided, That this right shall be exercised by the buyer only once in every five years of the life of the contract and its extensions, if any.
        
        EXCLUDES:
        
        INDUSTRIAL LOTS
        
        COMMERCIAL BUILDINGS
        
        TENANTS' SALES
        a. UNDER RA 3844 as amended by RA 6389
        
        NOT 2 YEARS TIME
        
        2 YEARS PAYMENT
        
        2 YEARS OF PAYMENT
        In Orbe v. Filinvest Land, Inc. the Court emphasized that “at least two years of installments" means the "equivalent of the totality of payments diligently or consistently made throughout a period of two (2) years.”
        [Spouses Francisco v. Battung]
        
        BEFORE 2 YRS -> 60 DAYS GRACE MIN
        Section 4. In case where less than two years of installments were paid, the seller shall give the buyer a grace period of not less than sixty days from the date the installment became due.
        
        FAIL TO PAY - CANCEL:
        
        30 DAYS AFTER NOTICE/DEMAND
        
        NOTARIZED
        If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act.
        
        "From the date the installment became due" means from demand or from breach?
        Kasi Contract to Sell toh malamang, and from what we know about CTS, ang reckoning point is from demand.
      - EXCLUDES:
        
        INDUSTRIAL LOTS
        
        COMMERCIAL BUILDINGS
        
        TENANTS' SALES
        a. UNDER RA 3844 as amended by RA 6389
    - - ALL BUYERS HAVE A RIGHT TO:
        [GSRAA]
        
        GRACE PERIOD
        
        SALE/ASSIGN
        
        REINSTATE
        
        ADVANCE, NO INTEREST
        
        ANNOTATE PAYMENT
        
        2 YR BUYERS HAVE A RIGHT TO
        
        LONGER GRACE PERIOD
        
        REFUND 50% TP
  - - - c. REMEDIES AVAILABLE TO THE SELLER
        
        d. ELECTION OF REMEDIES
      - NOT COVER STRAIGHT TERMS
        
        EARNEST MONEY IN SALE:
        PART OF PRICE
        PROOF OF PERFECTION
        Article 1482. Whenever earnest money is given in a contract of sale, it shall be considered as part of the price and as proof of the perfection of the contract. (1454a)
  - - - NO OPTION CLAUSE:
        DOESN'T PRECLUDE OPTION TO BUY
        While the agreement does not contain an option to buy, the absence of a purchase option clause does not militate against the idea that what the parties entered into was not a straight sale, but a lease with option to purchase.
        (Here, the demand letter stated that the lessee MAY EITHER PAY the balance + KEEP the equipment OR to surrender it.
        (PCI Leasing v. Giraffe-X Creative)
      - VALID: FORFEIT
        INSTALLMENTS/RENTS
        Article 1486. In the case referred to in the two preceding articles, a STIPULATION that the installments or rents paid shall not be returned to the vendee or lessee shall be valid insofar as the same may not be unconscionable under the circumstances. (n)
        
        EXCEPT IF:
        UNCONSCIONABLE
        
        INSTALLMENTS = "RENTALS" -> FORFEIT
        Can be implied stipulation whereby "installments" are treated as "rentals" which means the installments are forefeited.
        (Delta Motor Sales Corp -> Niu Kim Duan and Chan Fue Eng)
    - - RULES FOR EACH REMEDY
        1 OR MORE:
        
        DEMAND
        
        2 OR MORE:
        
        CANCEL
        a. SELLER RETURNS
        -PRICE - REASONABLE RENT
        -EXC: FORFEIT AGREED ON
        b. BUYER RETURNS
        -THING
        
        FORECLOSE
        -NO FURTHER ACTION FOR DEFICIENCY
        --CONTRARY STIPULATION = VOID
    - - NO TEMPTATION IF THE PRICE IS IN CASH OR PARTLY IN ONE TERM AND ANOTHER
        There is no such temptation where the price is to be paid in cash, or, as in the instant case, partly in cash and partly in one term, for, in the latter case, the partial payments are not so small as to place purchasers off their guard and delude them to a miscalculation of their ability to pay
    - - SPECIFIC PERFORMANCE [1]
        WAIVES FORECLOSURE [3]
        BUT MAY STILL LEVY
        , in the event the seller-mortgagee first seeks the enforcement of the additional mortgages, guarantees or other security arrangements (to exact fulfillment of the obligation – option 1), he must then be held to have lost by waiver or non-choice his lien on the chattel mortgage of the personal property sold by and mortgaged back to him, although, similar to an action for specific performance, he may still levy on it.