Redemption Bar Questions

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Redemption; Legal; Formalities (2001)

Betty and Lydia were co-owners of a parcel of land. Last


January 31, 2001, when she paid her real estate tax, Betty
discovered that Lydia had sold her share to Emma on
November 10, 2000. The following day, Betty offered to
redeem her share from Emma, but the latter replied that
Betty's right to redeem has already prescribed. Is Emma
correct or not? Why? (5%)
SUGGESTED ANSWER:
Emma, the buyer, is not correct. Betty can still enforce her
right of legal redemption as a co-owner. Article 1623 of the
Civil Code gives a co-owner 30 days from written notice of
the sale by the vendor to exercise his right of legal
redemption. In the present problem, the 30-day period for the
exercise by Betty of her right of redemption had not even
begun to run because no notice in writing of the sale appears
to have been given to her by Lydia.
Redemption; Legal; Formalities (2002)
Adela and Beth are co-owners of a parcel of land. Beth sold
her undivided share of the property to Xandro, who promptly
notified Adela of the sale and furnished the latter a copy of
the deed of absolute sale. When Xandro presented the deed
for registration, the register of deeds also notified Adela of
the sale, enclosing a copy of the deed with the notice.
However, Adela ignored the notices. A year later, Xandro
filed a petition for the partition of the property. Upon receipt
of summons, Adela immediately tendered the requisite
amount for the redemption. Xandro contends that Adela lost
her right of redemption after the expiration of 30 days from
her receipt of the notice of the sale given by him.
(5%)
SUGGESTED ANSWER:
Yes, Adela may still exercise her right of redemption
notwithstanding the lapse of more than 30 days from notice
of the sale given to her because Article 1623 of the New Civil
Code requires that the notice in writing of the sale must come
from the prospective vendor or vendor as the case may be. In
this case, the notice of the sale was given by the vendee and
the Register of Deeds. The period of 30 days never tolled. She
can still avail of that right.
ALTERNATIVE ANSWER:
Adela can no longer exercise her right of redemption. As
co-owner, she had only 30 days from the time she received
written notice of the sale which in this case took the form of a
copy of the deed of sale being given to her (Conejero v. CA, 16
SCRA 775 [1966]). The law does not prescribe any particular
form of written notice, nor any distinctive method for
notifying the redemptioner (Etcuban v. CA, 148 SCRA 507
[1987]). So long as the redemptioner was informed in writing,
he has no cause to complain (Distrito v. CA, 197 SCRA 606, 609
[1991]). In fact, in Distrito, a written notice was held
unnecessary where the co-owner had actual knowledge of the
sale, having acted as middleman and being present when the
vendor signed the deed of sale.
Assignment of Credit vs. Subrogation (1993)
Peter Co, a trader from Manila, has dealt business with Allied
Commodities in Hongkong for five years. All through the
years, Peter Co accumulated an indebtedness of P500,000.00
with Allied Commodities. Upon demand by its agent in
Manila, Peter Co paid Allied Commodities by check the
amount owed. Upon deposit in the payee's account in Manila,
the check was dishonored for insufficiency of funds. For and
in consideration of P1.00, Allied Commodities assigned the
credit to Hadji Butu who brought suit against Peter Co in the
RTC of Manila for recovery of the amount owed. Peter Co
moved to dismiss the complaint against him on the ground
that Hadji Butu was not a real party in interest and, therefore,
without legal capacity to sue and that he had not agreed to a
subrogation of creditor. Will Peter Co's defense of absence of
agreement to a subrogation of creditor prosper?
SUGGESTED ANSWER:
No, Co's defense will not prosper. This is not a case of
subrogation, but an assignment of credit. ASSIGNMENT OF
CREDIT is the process of transferring the right of the
assignor to the assignee. The assignment may be done either
gratuitously or onerously, in which case, the assignment has
an effect similar to that of a sale (Nyco Sales Corp.v.BA
Finance Corp. G.R No.71694. Aug.16, 1991 200 SCRA 637). As a
result of the assignment, the plaintiff acquired all the rights of
the assignor including the right to sue in his own name as the
legal assignee. In assignment, the debtor's consent is not
essential for the validity of the assignment
(Art. 1624; 1475. CC; Rodriguez v. CA, et al, G. R No. 84220,
March 25. 1992 207 SCRA 553).

ALTERNATIVE ANSWER:
No, the defense of Peter Co will not prosper. Hadji Butu
validly acquired his right by an assignment of credit under
Article 1624 of the Civil Code. However, the provisions on
the contract of sale (Article 1475 Civil Code) will apply, and
the transaction is covered by the Statute of Frauds. (Art.
1403 par. (2) Civil Code)

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