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Question
A property buyer pays PHP 520,000 to the Registry of Deeds for a 'title-clearance processing' fee, relying on a circular stating that such fee is required for title transfer under a transitional rule. After registration, the buyer learns that no such fee exists in law and that the Registry has retained the money. The buyer sues to recover the amount on the theory of solutio indebiti grounded on mistake of law. (a) Identify the controlling doctrine and its essential elements. (b) Is a mistake of law a valid basis for recovery under solutio indebiti, and how does this differ from a mistake of fact? (c) Apply to the facts: should the buyer be allowed to recover from the Registry, and what defenses might the Registry raise?