Practice question
A contract-to-sell arrangement validly ends and the governing terms require return of the collected payment. No valid forfeiture or separate damages basis is established. The seller relies solely on the receipt’s earnest label to keep everything. Which is best?
- Every labeled deposit is automatically retained forever.
- The label alone does not establish forfeiture contrary to the actual governing arrangement.
- Only a broker may demand a refund.
- The seller may privately invent damages.
- All contract-to-sell payments automatically convey ownership.
Legal references
- Civil Code Articles1306,1475,1482,1490-1492,1504,1522-1523 and1589-1590: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
- Chavez v. Spouses Gopez, G.R.242366, February26,2025, MAIN: https://lawphil.net/judjuris/juri2025/feb2025/gr_242366_2025.html
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