1. When is ownership deemed transferred?

 

2. When is delivery deemed effective?

 

3. One mortgaged a diamond ring to Two as a security for a loan which was to be paid 2 years thereafter. Since One failed to pay Two, he then foreclosed the mortgaged property. However, it turned out that the proceeds of the sale were insufficient, thus, Two filed an action for specific performance. One contends that this is a violation of the Recto law since the foreclosure of the chattel bars subsequent recovery. Is this correct? Please Explain. 

 

4. What is the rationale behind the right of stoppage in transit?

 

5. How is payment made by the buyer?

 

6. Distinguish Condition from Warranty.

 

7. Using a falsified manager's check, Kho, as the buyer, was able to take delivery of a second-hand car which he had just bought from Koi Car Sales Inc. The sale was registered with the Land Transportation Office. A week later, the seller learned that the check had been dishonored, but by that time, Kho was nowhere to be seen. It turned out that Kho had sold the car to Key, the present possessor who knew nothing about the falsified check. In a suit by Koi Car Sales, Inc. against Kho for recovery of the car, plaintiff alleges it had been unlawfully deprived of its property through fraud and should, consequently, be allowed to recover it without having to reimburse the defendant for the price the latter had paid. Should the suit prosper? Please explain.