Practice question
A reservation buyer pays PHP 150,000 while waiting for the developer’s promised contract to sell, which never materializes. On facts otherwise matching Empire East, the developer limits restitution to the PHP 25,000 initially named reservation fee. Is that necessarily correct?
- No; restitution can encompass all payments made under the rescinded reservation arrangement
- Yes, the label conclusively limits restitution
- Yes, later payments are always gifts
- Yes, developers never return additional payments
- Yes, the buyer must pay another reservation fee
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
Answer this question in flashcards to review your response and continue practicing.