Practice question
After an apparent vendor's repurchase period expires, the parties execute another instrument granting a new redemption period. The apparent buyer argues that this renewal can never indicate a security transaction. Under Article 1602, which conclusion is correct?
- Any renewal conclusively proves a donation.
- The new instrument is legally irrelevant under every circumstance.
- The described post-expiration grant is a listed circumstance supporting the equitable-mortgage presumption.
- The apparent buyer becomes owner of all the vendor's property.
- The court must presume that no transaction exists.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Article 1602(3).
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