37.

Statement 1. When there is doubt as to whether the contract is a contract of sale with right to repurchase or an equitable mortgage, the presumption under the law is that is equitable mortgage.

Statement 2. In case of doubt, courts are generally inclined to construe a transaction purporting to be a sale as an equitable mortgage, which involves a lesser transmission of rights and interest over the property in controversy.

Both statements are false

Only Statement 2 is true.

Both statements are true.

Only Statement 1 is true.

39

Statement 1. In conventional redemption, if there is no period of redemption agreed upon, it shall last ten years from the date of the contract. Statement 2. In conventional redemption, should there be an agreement, the period cannot exceed four years.

Only statement 1 is true.

Only statement 2 is true.

Both statements are true.

Both statements are false

42

Statement 1. Legal redemption is intended to maximize co-ownership.

Statement 2. The rule on redemption is liberally construed in favor of the original owner of the property and the policy of the law is to aid rather than defeat him in the exercise of his right of redemption.

Both statements are true.

Both statements are false

Only Statement 1 is true.

Only statement 2 is true.

43

Statement 1. Whenever a piece of rural land which is so small and so situated that a major portion thereof cannot be used for any practical purpose within a reasonable time, having been bought merely for speculation, is about to be re-sold, the owner of any adjoining land has a right of pre- emption at a reasonable price.

Statement 2. The owners of adjoining lands shall also have the right of redemption when a piece of urban land, the area of which does not exceed

Both statements are true.

Both statements are false

Only Statement 1 is true.

Only statement 2 is true.