Practice question
A section 4 buyer defaults. On the first overdue day the seller sends a notarized cancellation notice announcing immediate termination. It never grants the sixty-day grace period and argues notarization cured everything. Which answer follows section 4?
- Notarization alone authorizes same-day cancellation.
- The buyer loses grace solely because a document is notarized.
- Every notice sent before grace expires automatically overrides the statute.
- The seller has not followed the required grace-then-notice process; notarization does not replace the sixty-day grace period and subsequent thirty-day interval.
- The contract is necessarily fully paid.
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.