Practice question
What is the next statutory step if a section 4 buyer still fails to pay when the grace period expires?
- Immediate forfeiture through an oral threat.
- Automatic transfer of every buyer asset.
- A private notation retroactively cancelling at the first default.
- A criminal conviction for the buyer.
- Cancellation only after thirty days from the buyer’s receipt of notice of cancellation or demand for rescission by notarial act.
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.