Practice question
An owner sells equipment but remains physically holding it under a new lease from the buyer. All parties intend completed sale and delivery; no reservation or other defect exists. The seller argues unchanged physical location necessarily prevents tradition. Which is correct?
- Constitutum possessorium can implement delivery while the seller remains as a different kind of holder
- Every leaseback prevents transfer as a matter of law
- Only moving the equipment outdoors can deliver it
- The buyer must first become a trespasser
- A sale cannot coexist with any later lease
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1500–1502; no special transfer or registration rule assumed.
Answer this question in flashcards to review your response and continue practicing.