T/F   1.  In conventional redemption, the creditors of the vendor may make use of the right of redemption against the vendee although they have not exhausted the properties of the vendor. In case of doubt, a contract purporting to be a sale with a right to repurchase shall be construed as an equitable mortgage. For an assignment of credit to be binding against third persons if a movable property is involved, the same must be in a public instrument and recorded in the Registry of Property. A debtor who has paid his creditor before he learns of the assignment of his debt shall be released from his liability to the assignee. The debtor's consent is required for the validity of the assignment of the credit made by his creditor to another person.

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle
Section: Chapter Questions
Problem 19MCQ
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1. 

  1. In conventional redemption, the creditors of the vendor may make use of the right of redemption against the vendee although they have not exhausted the properties of the vendor.
  2. In case of doubt, a contract purporting to be a sale with a right to repurchase shall be construed as an equitable mortgage.
  3. For an assignment of credit to be binding against third persons if a movable property is involved, the same must be in a public instrument and recorded in the Registry of Property.
  4. A debtor who has paid his creditor before he learns of the assignment of his debt shall be released from his liability to the assignee.
  5. The debtor's consent is required for the validity of the assignment of the credit made by his creditor to another person.
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