Practice question
An apparent absolute sale is shown to be intended only to secure payment of a debt. The apparent buyer argues that Article 1602 can never apply because the deed is labeled an absolute sale. What does Article 1604 provide?
- The label conclusively bars inquiry.
- Every absolute sale is automatically a mortgage.
- Only oral arrangements can be examined.
- The debtor must create a new will first.
- Article 1602 also applies to contracts purporting to be absolute sales.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Article 1602(6), 1604.
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