A. In 2019, Nezuko purchased a house from Tanjiro for the amount of P5M. A deed of absolute sale was executed between the parties. A month after the execution of the deed of absolute sale, Nezuko transferred to the house. A year thereafter, Giyu filed a case for eviction against Nezuko on the ground that he had purchased the same house from Tanjiro in 2018, as evidenced by a notarized deed of absolute sale. A judgment was rendered by the court, ordering Nezuko to vacate the property. Nezuko then filed a separate case against Tanjiro for breach of warranty.

1. What are the liabilities of a seller in case of breach of warranty?

2. Will the case filed by Nezuko against Tanjiro prosper?

3. Assuming that Tanjiro is guilty of the breach of warranty, what are his liabilities?

B.D bought a car from E. The amount of the car is P800,000. He paid P200,000 upon the delivery of the car, and the balance is payable by installment. A chattel mortgage was imposed upon the car as security for the payment of the remaining balance. However, D failed to pay 2 installment payments, prompting E to file an action for the foreclosure of the mortgage. The car was sold through a public auction sale, but the proceeds was insufficient to cover the remaining debt. As such, E demanded from D the payment of the unpaid portion of his debt.

1. Is E legally allowed to demand for the portion of the debt that was left uncovered by the auction sale proceeds? Explain.

2. If E chose to foreclose the mortgage, can he still file for the rescission of the contract?