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Question
Mateo sells to Liza a vintage motorcycle (movable). They execute a simple bill of sale; Liza takes possession and uses the motorcycle. They do not register the transfer with the Land Transportation Office or the Register of Deeds. After six months, Liza asserts ownership by virtue of tradition and seeks to eject Mateo. There is a pre-existing and duly perfected chattel mortgage on the motorcycle in favor of Bank Horizon, evidenced by a public instrument and filed in the Registry of Deeds, which predates the sale. (a) State the doctrine of tradition and its scope. (b) Distinguish the rule for movables versus immovables with respect to transferring ownership. (c) Apply to the facts: who owns the motorcycle, and why? What are the implications for Liza’s possessory rights and for Bank Horizon’s registered mortgage?