Practice question
A machine's owner signs a perfected sale and hands the machine to the buyer under an express valid stipulation retaining ownership until full payment. Only half the price has been paid. The buyer argues that physical delivery necessarily overrides the reservation. Which statement is correct?
- Every physical handover defeats any ownership reservation
- Article 1478 permits the stipulated retention of ownership until full payment despite delivery
- A perfected sale can never create obligations
- The machine becomes ownerless until payment
- The reservation automatically makes the buyer a criminal
Legal references
- Civil Code Articles 712, 1475, 1477–1478 and 1496–1501: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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