1. Read this case: Province of Cebu versus Heirs of Rufina Morales; G.R. No. 170115; February 19, 2008

Answer the following questions:

a. The Province of Cebu stated that there being no Contract of Purchase and Sale, the sale is not valid. Is their contention considered by the Supreme Court correct? (YES or NO)

b. Defend your answer. Indicate the ruling of the Supreme Court on the first claim of the Province of Cebu.

c. The Province of Cebu also said that the failure of the Heirs of Rufina Morales to pay the balance of the purchase price rendered the sale not valid. Did the Supreme Court agree with this second claim? (YES or NO)

d. Defend your answer. Indicate the ruling of the Supreme Court on the second claim of the Province of Cebu.

2. Read the case: Romulo Coronel versus Court of Appeals; G.R. No. 103577; October 7, 1996.

a. In the same case, what was identified as the most significant distinction between a Contract TO sell from a Contract OF sale?

b. After reading the case, is the Receipt of Down Payment a contract to sell or a contract of sale?

c. With your answer in letter b, what is your basis for categorizing the Receipt of Down Payment as such? Your explanation must be consistent with the findings of the Supreme Court in the case.