Practice question
Does the label earnest money itself establish an enforceable forfeiture clause?
- Yes; every labeled payment is automatically forfeited in all circumstances.
- No; the actual terms and lawful basis must be established.
- Only the seller’s preference matters.
- No contract term can ever concern deposits.
- Every label is a court judgment.
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
Answer this question in flashcards to review your response and continue practicing.