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June 1, 2022

Supreme Court Decisions


Do you have to write all applicable laws in every contract?


 

Basic is the principle that the law is deemed written into every contract, such that while a contract is the law between the parties, the provisions of positive law which regulate contracts shall limit and govern their relations.

 

 

 

Allied Banking Corporation vs. Equitable PCI Bank, Inc., G.R. No. 191939, March 14, 2018, [858 SCRA 627]

 

 

 

 

 

 


What is the effect after a person has assumed the obligation of a nonexistent corporation?


 

A person who has assumed an obligation in favor of a non-existent corporation, having transacted with the latter as if it was duly incorporated, is prevented from denying the existence of the latter to avoid the enforcement of the contract.

 

 

Missionary Sisters of Our Lady of Fatima (Peach Sisters of Laguna) vs. Alzona, G.R. No. 224307, August 06, 2018, [876 SCRA 309]

 

 

 

 

 

 


What is a purchaser in good faith?


 

 A purchaser in good faith and for value is one who buys the property of another without notice that some other person has a right to or interest in such property and pays a full and fair price for the same, at the time of such purchase, or before he has notice of the claims or interest of some other person in the property.

 

Heirs of Macalalad vs. Rural Bank of Pola , Inc., G.R. No. 200899, June 20, 2018, [867 SCRA 150]

 

 

 

 

 

 

 


What is the purpose of earnest money in a contract to sell?


 

In a contract to sell, the payment of earnest money represents the seller’s opportunity cost of holding in abeyance the search for other buyers or better deals.

 

 

Racelis vs. Javier, G.R. No. 189609, January 29, 2018 [853 SCRA 256]

 

 

 

 

 

 

 

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