S, who was leaving for the United States as an immigrant, sold his house to B for P2,000,000.00, with B giving a down payment of P1,200,000.00. The parties agreed that S would lease the house for P50,000.00, the same to be deducted from B's balance of P800,000.00 until the scheduled departure of S for abroad two months later. Two days before the scheduled departure of S, the house was razed by fire that started at a neighbor's house.
a. B must still pay the balance of P750,000.00 under the principle of "res perit domino" since he was already the owner at the time of loss.
b. B need not pay the balance under the rule that "no person shall be responsible for fortuitous events."
c. Both S and B should share in the loss because they mutually agreed on the terms of the contracts they entered into.
d. S, being the owner at the time of the loss, must bear the risk of loss since he continued in physical possession of the house after the execution of the contract of sale.
