Practice question
A contract creates a real right over property. A third person later obtains possession of that property and insists that Article 1311's general relativity rule necessarily excludes every real right created by the contract. Which qualification does Article 1312 provide?
- Possession always erases every real right.
- Land-registration laws never apply.
- Third persons who obtain possession of the contract's object may be bound by the real right, subject to mortgage and land-registration laws.
- Only the contract's witnesses can be bound.
- The third person automatically owns the creditor's other assets.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Article 1312.
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