Question

1. Mario entered into a contract to purchase a piece of land from Juan. The contract was entered into on January 1, 2020, and the payment was made on the same day. On January 5, 2020, a new law was enacted that increased the tax rates on real estate transactions. Juan, as the seller, insists that Mario should pay the additional taxes imposed by the new law, while Mario argues that the old law should apply since the contract was already perfected before the new law took effect. Discuss the retroactive effect of laws and the application of the vested rights principle in resolving this dispute.

2. Alyssa rented an apartment from Brandon, signing a lease agreement on May 1, 2019. The lease agreement stipulated that the monthly rent would be fixed for the entire duration of the lease, which is 3 years. However, a new law was passed on January 1, 2020, allowing landlords to increase rental rates annually. Brandon, as the landlord, wants to implement the rent increase as permitted by the new law, while Alyssa argues that the rent should remain unchanged based on their existing lease agreement. Explain the concept of retroactivity of laws and discuss how the vested rights principle applies in this situation.

3. Eduardo operates a small business selling electronic gadgets. He imported several units of a popular smartphone model from a foreign supplier and sold them to local customers at a profit. However, on March 1, 2020, a new customs regulation was issued, increasing the import duties for electronic gadgets. Eduardo argues that the higher import duties should not apply to the smartphones he purchased before the new regulation took effect. Analyze the retroactive effect of laws and explain how the vested rights principle applies in this case.