4C- Civquiz #7 Tacit warning to the sellers that,

unless they expressly disclaim any responsibility,

SA L ES A N D L E ASE they will be held liable if the sold items are
found defective in any way or vary from the specifications.
TRUE 1. Dean Jara and Dean Ulan may enter into a sale, lease and mortgage of the same property in one and the
same document without affecting their validity Latin for, let the seller beware. Mirror image of caveat emptor.

di ko po talaga alam ang sagot dito. Huhu. Kung alam nyo po. Palagay na lang. di ko din alam kung saan
hahanapin sagot huhu. But try ko na lang

F A LSE . sale and mortgage on the same property may bring incompatible rights to the parties. Sale is a
transfer of ownership and mortgage is an accessory contract of security.

2. Caveat emptor and caveat venditor apply to voluntary sale, forced sale and lease of things

T R U E. The maxim caveat emptor is still applLFDEOH KRZHYHULQVKHULII¶VVDOHVVDOHVRIDQLPDOVXQGHU

Article 1574, and tax sales (see Art. 1547, last par.) for there is no warranty of title or quality on the part
of the seller in such sales. It also applies in double sales of property where the issue is who between two
vendees has a better right to the property. (see Art. 1544.) (DE LEON)

As to caveat venditor ART. 1653. The provisions governing warranty, contained in the Title on Sales,
shall be applicable to the contract of lease. In the cases where the return of the price is required, reduction
shall be made in proportion to the time during which the lessee enjoyed the thing.

TRUE 3. In a sale of goods, there is a possibility that the vendor may be deemed to have complied with his
prestation even if he does not deliver the goods.

F A LSE. Delivery of the goods, actually or constructively, is one of the obligations of the vendor that
cannot be waived. (Art.1458)

TRUE 4. The Recto law applies to assignment of credit and incorporeal rights.

F A LSE. Recto law is only available for sale of personal property on installment

5. An informal settler (squatter) can validly lease but not sell the land and improvement occupied by him

T R U E. Lessor need not be the owner of the leased propery; a mere possessor or a mere lessee may be a
lessor.

FALSE 6. A contract of lease is consensual, nominate, bilateral, onerous and commutative although exceptionally.
It could be renumenatory.

T R U E. A renumenatory contract os one where a party gives something to another because of some
service or benefit given by the latter to the former where such service or benefit is not due because of
legal obligation. Tingin ko pwede namang service rendered in the past ang maging compensation for a
lease contract. Though hindi ako sure

7. A lease for professional services may be implied because no specific form is required.

T R U E. If no specific agreement is made, the price ins contract of lease of services should be the
reasonable value of the services rendered.(Perez v. Pomar, 2 Phil. 262)
 8. In lease of work, the lessee becomes the agent of the lessor but only with respect to the particular work
performed.

F A LSE. In the lease of work or service, the relation of principal and agent does not exist between them.
(Art. 1644)

TRUE 9. Exceptionally, a portion of the town plaza which is property for public use may be the object of lease.
!"#$%&'($&)*+,&-'&-.&/0012$#
F A LSE. A public plaza is beyond the commerce of man and so cannot be the subject of lease or any other
contractual undertaking. This point was settled as early as in Municipality of Cavite v. Rojas (30 Phil.
0DUFK ZKHUHLQWKH&RXUWKHOG ³7KH&LYLO &RGHDUWLFOH 1271, prescribes that everything
which is not outside he commerce of man may be the object of a contract, and plazas and streets are
outside of this commerce, as was decided by the Supreme Court of Spain in its decision of February 12,
195, which says: "Communal things that cannot be sold because they are by their very nature outside of
FRPPHUFHDUHWKRVHIRUSXEOLF XVHVXFKDVWKHSOD]DVVWUHHWVFRPPRQODQGVULYHUVIRXQWDLQV HWF´
(Villanueva et al v. Castaneda, G.R. No. L-61311, Sept. 21, 1987; See also: Muyot v. dela Fuente, G.R.
No. L-653448; Espiritu v. Municipal Council of Pozorrubio, 102 Phil. 869-870). EWAN KO LANG
.81*0$<(;&(37,21:$/$3$$.20$.,7$1*(;&(37,21$/&$6(«Typo. Erratum
*the commerce of man; 1915.

10. The persons enumerated in Article 1491 are prohibited from entering into a contract of lease of
service.

F A LSE. They are only prohibited from entering into a contract of lease of things with respect to the
property mentioned in Article 1491 because of the similarity between a contract of sale and lease of
things/property. Art. 1646. The persons disqualified to buy referred to in Articles 1490 and 1491, are also
disqualified to become lessees of the things mentioned therein.

11. A right may also be a subject of contract of lease and the compensation is called royalty.

T R U E. This is true with respect to intangible things like mining rights and intellectual property rights
such as copyright.

12. The lessor is obliged to answer even for a mere act of trespass which a third party may cause on the
use of the thing leased but the lessee shall have a direct action against the intruder.

F A LSE. Mere trespass in fact does not give rise to the application of the doctrine of eviction. There is a
mere act of trespass when the trespasser claims no right whatever. The vendor is not liable therefor. In
such case, the vendee has a direct action against the trespasser in the same way as the lessee has such
right. (Art. 1664) (De Leon, p. 322)

12. The lessor is obliged to answer even for a mere act of trespass which a third party may cause on the
use of the thing leased but the lessee shall have a direct action against the intruder.

F A LSE. Mere trespass in fact does not give rise to the application of the doctrine of eviction. There is a
mere act of trespass when the trespasser claims no right whatever. The vendor is not liable therefor. In
such case, the vendee has a direct action against the trespasser in the same way as the lessee has such
right. (Art. 1664) (De Leon, p. 322)
 13. When the lessor repairs the thing leased but the lessee is not satisfied, the latter may suspend payment
of rent.

F A LSE. Art. 1658 provides that the lessee may suspend payment of rent in case the lessor fails to make
the necessary repairs or to maintain the lessee in peaceful and adequate enjoyment of the property leased.
Thus, not in case of dissatisfaction of the repairs made.

14. If the lessee fails to comply with his obligations, the lessor may file an action for rescission but not an
action for damages only.

F A LSE. Art. 1659 provides that lessor may ask for damages only, allowing the contract to remain in
force.

15. If the lessor sells the property leased to a third party in violation of a right of first refusal given to a
lessee, the contract of sale is rescissible regardless of the good faith of the buyer.

F A LSE. A deed of sale executed in favor of a third party not deemed a purchaser in good faith, in
violation of the right of first refusal granted to the optionee is valid but rescissible under Articles 1380 to
1381[3] of the New Civil Code (Riviera Filipina vs CA, Gr no 117355, April 5, 2002). Thus, if the third
party is a purchaser in good faith, then the sale cannot be rescinded. This is because one of the requisites
of Rescission under Article 1385 is that the object of the contract must not have passed legally to the
possession of a third person acting in good faith.

FALSE 16. The lessor has a subrogatory right against a sub-lessee for unpaid rent.

T R U E? Art. 1652. The sublessee is subsidiarily liable to the lessor for any rent due from the lessee.
However, the sublessee shall not be responsible beyond the amount of rent due from him, in accordance
with the terms of the sublease, at the time of the extrajudicial demand by the lessor. (Sorry, ginaya ko
lang yung sagot from the previous sample. Di ko rin alam ano sagot.)

17. A lease extendible by mutual agreement would simply amount to a right of first refusal in favor of the
lessee so that if a third party will offer a higher rent, the lease in favor of the first lessee will not be
extended unless he can match the higher offer.

F A LSE. When a contract of lease provides that the term thereof is extendible, the agreement is
understood as being in favor of the lessee, and the latter is authorized to renew the contract and to
continue to occupy the leased property, after notifying the lessor to that effect. The lessor can withdraw
from the said contract only after having fulfilled his promise to grant the extension of time stipulated
therein, unless the lessee has failed to comply with or has violated the conditions of the contract. It is not
necessary that the extension be expressly conceded by the lessor because he consented thereto in the
original contract. (De Murga v Chan, GR L-24680)
FALSE 18. The lease of a vibrator is not real in character and may not be transmitted to the heirs upon death of lessee.
19. An implied new lease may result even if there is express stipulation to the contrary.

F A LSE. There can be no implied renewal where the parties stipulated that there would be no renewal by
implication. (Ramon Magsaysay award foundation v. CA 1985)

20. An implied new lease will be for the same period as the original lease but a guaranty executed in favor
of the lessor shall cease with respect to the new lease
 F A LSE. Article 1670 of the Civil Code is thus apropos; it provides: "If at the end of the contract the
lessee should continue enjoying the thing leased for fifteen days with the acquiescence of the lessor, and
unless a notice to the contrary by either party has previously been given, it is understood that there is an
implied new lease, not for the period of the original contract, but for the time established in articles 1682
and 1687. The other terms of the original contract shall be revived. The terms of the original contract that
are carried over to the implied new lease, as so aptly ruled in Dizon vs. Magsaysay, cover only those
terms that are germane to the lessee's enjoyment of the premises, such as the rent and terms of
payment...But no such presumption may be indulged in with respect to special agreements which by
nature are foreign to the right of occupancy or enjoyment inherent in a contract of lease.

FALSE21. The failure to make rentals shall make the continued possession unlawful.

T R U E. As period for payment has already been stipulated in the lease contract, failure to perform the
obligation, in this case pay rentals, constitutes unlawful possession.

22. A provision in a contract of lease that improvements introduced by a lessee will accrue to the lessor
upon termination of the lease shall be governed by the rules on sale of property

F A LSE. Governed by 1678. (Basis: Sulo sa Nayon Inc. vs Nayong Pilipino)

We reiterate the doctrine that a lessee is neither a builder in good faith nor in bad faith that would call for
the application of Articles 448 and 546 of the Civil Code. His rights are governed by Article 1678 of the
Civil Code,

TRUE 23. The lessor may terminate the lease when rentals are not paid without court action

T R U E. Irao v. By the Bay (provided there is contractual stipulation empowering lessor to extra judicially
rescind)

F A LSE. (Basis: Aquino civil law reviewer 2014 p. 603) Under Art. 1659, in case of breach of the
obligation of the lessee to pay the price of the lease, the lessor may avail of the following remedies:

(1) judicial rescission plus damages

24. A contract of sale entered into in violation of the right of first refusal is valid. ±

T R U E. ("The rule is that a sale made in violation of a right of first refusal is valid. However, it may be
rescinded, or, as in this case, may be the subject of an action for specific performance." -Tanay Creation
Center vs. Catalina Fausto, GR 140182)

25. The lessee in a lease of rural land has a right to reduction of rental in account of sterility of the land
and for the loss of the fruits due to extraordinary and unforeseen events.

F A LSE, loss must be for more than one half of the fruits. (Art1680)

26. The provision in a contract of lease that all improvements introduced by the lessee will accrue to the
benefit of the lessor without reimbursement is not valid. ±

F A LSE. Autonomy of contracts.

27. The lease for a determinate time ceases upon the day fixed without need for a demand.
T R U E. Art. 1669. If the lease was made for a determinate time, it ceases upon the day fixed, without
need of a demand

28-30. 3 modes of terminating lease (memaid 2015 pg 378)

1. Expiration of the period of lease (art 1673 par1)

1. 2.when the lessor does not have a right to enter into a lease contract (ballesteros vs abion)
2. By the will of the transferee or purchaser of the thing (art1676 par1)
3. By total loss of the thing (art1655)
4. By rescission due to non performanceof the obligation of one of the parties set forth in arts 1654
and 1657 (art1659)
5. Inncase the dwelling place or any other building is unfit for human habitation and is dangerous to
life or health (art1660)

6 no warranty against hidden defects

4 exceptions to suspend payment
7 persons specially disqualified to buy
3 delivery does not transfer title
3 goods no longer in transit
3 implied warranties
3 persons from whom redemption
5 requisites of warranty against eviction