SOME PARTICULAR KINDS OF SALES
Sale with Right of Redemption
Section 491. Sale with right of redemption is a contract of sale whereby the ownership of the property sold passes to the buyer subject to an agreement that the seller can redeem that property.
Section 492. Where the property sold is redeemed within the period fixed by the contract or by law, or where the person who redeems deposits the price of redemption to a deposit office within the period by waiving the right to withdraw the price, the ownership of the property shall be vested in the person who redeems from the time of payment or deposit of the price, as the case may be.
In the case of deposit under paragraph one, an official of the deposit office shall immediately give notice of it to the redeemed person, whereby the person who redeems does not have to comply with Section 333 paragraph three.
Section 493. The parties may agree that the buyer shall not dispose of the property sold. If he disposes of it contrary to his agreement, he shall be liable to the seller for any injury resulting thereby.
Section 494. The right of redemption cannot be exercised later than:
- Ten years after the time of the sale in case of immovable property.
- Three years after the time of sale in case of movable property.
Section 495. If a longer period is provided in the contract, it shall be reduced to ten years and three years respectively.
Section 496. The period of redemption may be afterward extended by a contract, but if the total period is in excess of the period under Section 494, it shall be reduced to the period under Section 494.
The extension of the period under paragraph one must, at least, have some written evidence signed by the redeemed person. In case of the property whose sale must be made in writing and registered by the competent official, the extension can not be set up against a third person who has, for value and in good faith, acquired and registered his right unless such writing or written evidence is registered or recorded by the competent official.
Section 497. The right of redemption may be exercised only by:
- The original seller or his heirs, or
- The transferee of the right, or
- Any person expressly allowed to redeem by a contract.
Section 498. The right of redemption may be exercised only against:
- The original buyer
- The transferee of the property or of a right on the property, provided that, in case of movable property, he knew at the time of the transfer that such property was subject to a right of redemption.
Section 499. If no price of redemption id fixed, the property may be redeemed by reimbursing the price of the sale.
If the price of redemption or the price of the sale, at the time of redemption, is higher than the real price of the sale more than fifteen percent per year, it shall be redeemed at a real price including fifteen percent per year of profit.
Section 500. Costs of the sale borne by the buyer must be reimbursed together with the price.
Costs of redemption are borne by the person who redeems.
Section 501. The property must be returned in the condition in which it is at the time of redemption, provided that if the property has been destroyed or deteriorated through the fault of the buyer he must pay compensation therefore.
Section 502. The person who redeems the property recovers it free from any rights created by the original buyer or his heirs or transferee before redemption.
If a hire of property held subject to a right of redemption is registered by the competent official, it shall be valid for not more than one year of its remaining duration, provided that it is not made for the purpose of injuring the seller.
Sale by Sample; Sale by Description; Sale on Approval
Section 503. In a sale by sample, the seller is bound to deliver property or properties corresponding to the sample.
In a sale by description, the seller is bound to deliver property corresponding to the description.
Section 504. No action for liability on account of non-correspondence to the sample or description can be entered later than one year after delivery.
Section505. A sale on approval is the selling contract that the buyer having an option to buy when verifying the buying property.
Section 506. To verify the property, if there is no buying deadline, the seller may specify the reasonable deadline period and give a notice to the buyer to accept or reject the buying or not.
Section 507. The property that the buyer having option to verify before delivery, if the buyer does not accept it within the deadline stated in the contract or commercial practice or deadline setting by the seller, the selling contract is unbound.
Section 508. When the property is delivered to the buyer for verifying, the selling and the buying shall be absolutely completed in the following cases:
- If the buyer does not reject the purchasing within deadline specified in the contract or by commercial practice or setting by the seller; or
- If the buyer does not return the property to the seller within the said deadline; or
- If the buyer fully uses all the property or in some parts; or
- If the buyer sells the property or makes any buying signals.
Sale by Auction
Section 509. The auction shall be completed when the auctioneer accepts the final price by knocking the wood hammer or any practical acts in auct ion; otherwise the bidder can withdraw his bid in anytime.
Section 510. During bidding process, the bidder must comply with the bidding procedure that the auctioneer has announced in each bidding.
Section 511. The auctioneer cannot make a bid or let any person to make a bid for his own benefit that he is control the bidding process.
Section 512. The seller cannot make a bid or let any person to make a bid, except specified in the bidding terms and conditions that the seller has the right to bid.
Section 513. If the auctioneer thinks that the bidding price is not high enough, he may withdraw the said property auction.
Section 514. The bidder shall be unbound from his bid when other person offers a higher bidding price, even though the said bidding is complete or not, or when the auctioneer withdraws the said property auction.
Section 515. Bidder who offers the highest bidding price must pay in cash when the auction is complete or the deadline specified in the bidding advertising.
Section 516. If the bidder who offers the highest bidding price does not pay the money, the auctioneer may renew the auction. If the renew bidding price is lower than the previous one, such default bidder must liable for the short.
Section 517. If some or all of the proceed from auction is unpaid that the cause comes from the ignorance of the auctioneer under Section 515 or Section 516, the auctioneer has to liable for the unpaid amount.
Section 518. Exchange is the contract that both parties transfer the right of ownership to each other.
Section 519. In any provisions of the laws relating to the selling and buying, the exchange is also included in such provision by implying that both parties are seller and buyer for such transfer of such properties.
Section 520. If any exchanging party accepts to add money with the exchange of property to anther, the selling price shall include such additional cash payment too.