Practice question
A section 3 buyer receives proper notarial notice. Forty days pass, but the seller has paid none of the cash surrender value. All other relevant facts are stipulated. Has the seller completed actual cancellation solely by waiting?
- No, full payment of the cash surrender value remains required under section 3(b).
- Yes, because waiting automatically counts as payment.
- Yes, because notice extinguishes every refund duty.
- Yes, if the seller keeps the refund calculation secret.
- No, because the law forbids every cancellation forever.
Legal references
- https://lawphil.net/statutes/repacts/ra1972/ra_6552_1972.html — RA 6552, sections 3–5 and7.
- https://lawphil.net/judjuris/juri2007/jan2007/gr_167452_2007.html — Jestra Development v Pacifico, GR 167452, January 30 2007, main opinion: section 4 two-step cancellation.
Answer this question in flashcards to review your response and continue practicing.