Practice question
A possessor in bad faith paid necessary expenses to preserve a building and also paid for luxurious removable decorations. Upon lawful recovery, the possessor demands reimbursement of necessary expenses and insists on retaining the entire building until paid, citing Article 546. Which answer accurately distinguishes reimbursement from retention?
- Bad faith bars every reimbursement, even necessary expenses
- Necessary expenses are refundable to every possessor, but Article 546 reserves retention for them to a possessor in good faith
- Necessary expenses always transfer ownership of the building
- Every expense, including luxury, gives an identical right of retention
- The recovering owner must abandon the property
Legal references
- Civil Code Articles 523–549: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
Answer this question in flashcards to review your response and continue practicing.