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Philippine Bar review · Question

Practice question: Earnest Money

Multiple Choice Hard

Practice question

The parties' established arrangement reserves the seller's agreement to transfer ownership until the buyer performs specified conditions. A receipt identifies the property, a contemplated price and a sum called earnest money. The buyer argues these words alone eliminate the unfulfilled conditions. Which analysis is consistent with Chavez?
  1. Receipt terminology necessarily eliminates the conditions
  2. The court must determine the actual agreement and cannot use the earnest-money label alone to substitute a perfected sale for the established contract to sell
  3. The buyer automatically acquires title to unrelated property
  4. Every receipt proves delivery of all title documents
  5. The parties' surrounding agreement is categorically irrelevant

Legal references

  • Civil Code Articles 1475, 1477 and 1482: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
  • Chavez v. Spouses Gopez, GR 242366, February 26, 2025, main decision: https://lawphil.net/judjuris/juri2025/feb2025/gr_242366_2025.html

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