Philippine Bar review · Question

Practice question: Earnest Money

Multiple Choice Hard

Practice question

A valid agreement expressly requires refund if a specified title-clearance condition fails. The condition fails and all relevant facts apply. The seller argues the words earnest money automatically delete the refund clause. Which is best?
  1. Evaluate and enforce the valid actual terms; the label alone does not erase them.
  2. Every earnest label necessarily cancels all refund terms.
  3. The seller may disregard every written condition.
  4. The condition automatically makes the buyer owner of unrelated land.
  5. Only the amount’s last digit matters.

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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