Civil Law, 2013 Bar — Question VI-B

ESSAY

Lito obtained a loan of P1,000,000 from Ferdie, payable within one year, secured by a chattel mortgage on a Toyota Avanza and a real estate mortgage on a 200-square meter property. Lito's failure to pay led to the extra-judicial foreclosure of the mortgaged real property. Within a year from foreclosure, Lito tendered a manager's check to Ferdie to redeem the property. Ferdie refused to accept payment on the ground that he wanted payment in cash: the check does not qualify as legal tender and does not include the interest payment. Is Ferdie's refusal justified?

You can write freely without an account. Sign in to reveal the suggested answer and track your progress.