CHAPTER VII - EXTINGUISHMENT

Multiple Choice
1. It takes place when the vendor reserves the right to repurchase the thing expenses sold with of
the obligation of returning to the vendee the price of the sale, the expenses of the contract, and
the necessary and useful expenses made on the thing sold.
a. Right of repurchase
b. Equity of redemption
c. Conventional redemption
d. Legal redemption
2. A, B and C are co-owners in equal shares of one-hectare rural land, the adjoining owners to
which are D and E, the latter owning the smaller area. A donated his share of the land owned in
common to X who is a rural landowner. Upon the proper notice of the sale, B, C, D and E sought
to exercise the right of legal redemption over the shares sold. Who shall have the right to do so?
a. A and B are preferred to D and E to redeem.
b. E shall have the right to redeem because he has the smallest area.
c. None of them has the right to redeem because the land alienated was not by onerous
title.
d. The first one between A and B to request redemption shall be preferred.
3. The contract shall be presumed to be an equitable mortgage, in any of the following cases,
except:
a. When the price of a sale with right to repurchase is usually inadequate.
b. When the vendor remains in possession as lessee or otherwise.
c. When upon or after the expiration of the right to repurchase, another instrument
extending the period of redemption or granting a new period is executed.
d. When the purchaser retains for himself a part of the purchase price.
4. A, B and C are co-owners of an undivided parcel of land. A sold his 1/3 share to B. Which is
correct?
a. C may exercise his right of redemption within 40 days.
b. C cannot exercise the right of redemption since the sale was made to a co-owner.
c. The deed of sale is unenforceable because it is unauthorized.
d. C may exercise his right of redemption by operation of law.
5. The contract shall be presumed to be an equitable mortgage, in any of the following cases,
except:
a. When upon or after the expiration of the right to repurchase another instrument
extending the period of redemption or granting a new period is executed.
b. When the purchaser retains for himself a part of the purchase price.
c. When the vendee binds himself to pay the taxes on the thing sold.
d. In any other case where it may be fairly inferred that the real intention of the parties is
that the transaction shall secure the payment of a debt.
6. I. In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed
as an equitable mortgage.
II. In case of doubt, courts are generally inclined to construe a transaction purporting to be a
sale as an equitable mortgage, which involves a lesser transmission of rights and interest over
property in controversy.
a. Only I is true
 b. Only II is true
c. Both are true
d. Both are false
7. A sold to X his 1/2 share of the parcel of land he co-owns with B. C owns the parcel of land
adjoining that of A and B. Both B and C want to redeem the share of A which the latter sold to X.
a. B's right as co-owner excludes that of C, the latter being only an adjoining owner.
b. C shall be preferred to B in the redemption from X.
c. C has a better right to the redemption as an adjoining owner.
d. B and C can equally redeem the share of A.
8. One that - although lacking in some formality, forms and words, or other requisites demanded by
a statute - nevertheless reveals the intention of the parties to charge a real property as security
for a debt and contains nothing impossible or contrary to law.
a. Real mortgage
b. Equitable mortgage
c. Chattel mortgage
d. Antichresis
9. I. In conventional redemption, if there is no period of redemption agreed upon, it shall last 10
years from the date of the contract. (4 years)
II. In conventional redemption, should there be an agreement, the period cannot exceed 4 years.
(10 years)
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
10. I. The creditors of the vendor cannot make use of the right of redemption against the vendee,
until after they have exhausted the property of the vendor.
II. The vendor may bring his action against every possessor whose right is derived from the
vendee, even if in the second contract, no mention should have been made of the right to
repurchase.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
11. I. If several persons, jointly and in the same contract, should sell an Undivided immovable with a
right of repurchase, none of them may exercise this right for more than his respective share.
II. If several persons, jointly and in the same contract, should sell an Undivided immovable with
a right of repurchase, the vendee may demand of all the vendors or co-heirs that they come to an
agreement upon the purchase of the whole thing sold: and should they fail to do so, the vendee
cannot be compelled to consent to a partial redemption.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
12. I. Each one of the co-owners of an undivided immovable who may have sold his share separately,
 may independently exercise the right of repurchase as regards his own share, and the vendee
cannot compel him to redeem the whole property,
II. If the vendee should leave several heirs, the action for redemption cannot be brought against
each of them except for his own share, whether the thing be undivided, or it has been partitioned
among them.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
13. The vendor cannot avail himself of the right of repurchase without returning to the vendee,
except:
a. Interest
b. The price of the sale
c. The expenses of the contract
d. The necessary and useful expenses made on the thing sold
14. Is the right to be subrogated, upon the same terms and conditions stipulated in the contract, in
the place of one who acquires a thing by purchase or dation in payment, or by any other
transaction whereby ownership is transmitted by onerous title.
a. Right of repurchase
b. Equity of redemption
c. Conventional redemption
d. Legal redemption
15. It is the right to be subrogated, upon the same terms and conditions stipulated in the contract, in
the place of one who acquires a thing by:
a. Donation
b. Purchase
c. Dation in payment
d. Any other transaction whereby ownership is transmitted by onerous title
16. I. Legal redemption is intended to maximize co-ownership. (minimize)
II. The rule on redemption is liberally construed in favor of the original owner of the property
and the policy of the law is to aid rather than defeat him in the exercise of his right of redemption.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
17. I. The owners of adjoining lands shall also have the right of redemption when a piece of urban
land, the area of which does not exceed one hectare, is alienated, unless the grantee does not
own any urban land. (rural land)
II. Whenever a piece of rural land which is so small and so situated that a major portion thereof
cannot be used for any practical purpose within a reasonable time, having been bought merely for
speculation, is about to be re-sold, the owner of any adjoining land has a right of pre-emption at a
reasonable price. (urban land)
a. Only I is true
b. Only II is true
 c. Both are true
d. Both are false
18. I. In legal redemption, the right of redemption of co-owners excludes that of adjoining owners.
II. The purpose of legal redemption is to reduce the number of participants until the community
is terminated, being a hindrance to the development and better administration of the property.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false