Practice question
A developer never issues the promised contract to sell after accepting reservation payments. Is the buyer’s refund claim necessarily restricted to Maceda Law cash surrender value?
- No; the governing transaction and cause of rescission must first be identified
- Yes, every refund is capped at half
- Yes, all reservations are installment contracts
- Yes, the developer alone chooses the law
- Yes, civil rescission is abolished
Legal references
- Empire East Land Holdings, Inc. v. Bautista, G.R. No.272556, February 3, 2026, MAIN decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/70374
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