List of Problems The Law on Obligations and Contracts 2014 By Hector S. De Leon, Hector M. De Leon, Jr. October 10, 2016 name. School of Electrical, Electronics, and Computer Engineering, Mapúa Institute of Technology Intramuros, Manila Philippines emailadd
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X saw at about one (1:00p.m.) in the afternoon a child alone in a shopping mall. The child who strayed from Y, his mother, was in tears and appeared very hungry. Out of pity, X took him to a restaurant to eat for which he spent P150. Y did not give her consent to the good deed of X. Furthermore, they were on their way home before the child got lost. Is X entitled to reimbursed by Y for the amount of P150? D (debtor) borrowed P10,000 from C (creditor). On the due date of the loan, D could not pay C because he lost to a robber the P10,000 intended for C. In addition, he suffered financial reverses, and he was short of cash even for his current family’s needs. Is D legally justified to refuse to pay C?
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D (debtor) borrowed P10,000, from C (creditor). It was agreed that D could pay P10,000 or deliver his piano on August 22. On August 20, D informed C that the former would deliver his piano. Can D still change his period considering that he was given the right of choice? 6.
S (seller) sold to B (buyer) on July 5, a horse named Silver to be delivered on July 20. However, on July 15, S sold again and delivered the horse to T. Who has a better right to Silver?
D (debtor) borrowed P20,000 from C (creditor) payable on or before August 30. Before the arrival of the due date, C agreed to the pronmise of B to pay C if B wants. Can C insist that B pay not later than August 30? S sold a parcel of land to B for P240,000 payable in installments of P20,000 a year. The land was delivered to B who obtained ownership thereof. After B had paid P200,000, he could no longer continuing paying in view of financial reverses but he was willing to pay the balance of P40,000 if given more time. Thereupon, S sued for rescission under Article 1191. If you were the judge, would you grant rescission?
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D binds himself to give P10,000 from C upon the death of the father of D. Is the obligation of D conditional or one with a period
Under a contract, X (obligor) promised to deliver Y (oblige) item one, or item two, or item three. Y was given the right of choice. What is the liability of X in case, through his fault: a. Item two is lost or destroyed; b. All the item are lost or destroyed?
D (debtor) borrowed P20,000 from C (creditor) payable after one (1) year. Is D liable to pay interest? 3.
D obtained a loan from C in the amount of P50,000, payable on August 10. As security for his debt, D mortgaged his car in favor of C. The car, however, was substantially damaged without the fault of D. What rights, if any, does C have under the law? May C demand payment from D even before August 10?
A owes B and C, solidary creditors, the sum of P20,000: c. Can C condone the debt without the consent of B? d. Can C assign his rights without the consent of B? 7.
A and B bind themselves to pay C their loan of P10,000 on certain date. Is the obligation divisible or indivisible? X promises to deliver to Y a specific horse. Their contract contains a penal clause that in case of non-fulfillment, X shall pay a penalty of P10,000. X wants to just pay that penalty instead of delivering the horse. Has Y the right to refuse to accept the penalty in lieu of the horse?
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In the same problem, X was able to show that Y did not suffer any damage by X’s violation of his obligation. Can Y still enforce the penalty?
D (debtor) owes C (creditor) P10,000 with G as guarantor. On the due date of the obligation, T, a third person, offered to pay the obligation of D. Can C legally refuse to accept the payment? How about an offer of payment from G? 9.
M (maker) issued a promissory note for P10,000 in favor of P (payee) who lost the note which was found by T who demands payment from M. M did not know that the note was lost by P. Is M justified in paying T? X obliges himself to deliver a specific thing to Y on a certain date. The thing was lost by X without his fault and before he has incurred in delay. Does it mean that X is already exempt from liability?
10. Suppose in the preceding problem, the thing was lost through the fault of Z, a third person. State the effect of the loss as far as X, Y, and Z are concerned. A, B, and C are jointly liable to D in the amount of P15,000. Subsequently, D assigned his credit to C in consideration for goods sold by C to D. Give the effect of the assignment. 11. Assuming the obligation of A, B, and C is solidary, distinguish the effect of the assignment from the first problem. D borrowed P50,000 as character loan (no security) from a bank. Despite demands for payment after the loan fell due, D did not pay the bank. D has a savings deposit of P40,000 with the bank. Has the bank the right to apply the deposit to the payment of D’s debt? 12. The XYZ case. The Chief Finance Officer seems to practice spurious insurance claims which violates professional ethics. This problem is to be solved in the point of view of Z the newly hired manager and X’s boss, citing his possible courses of action and the consequences for each one. 13. D owes C P10,000 payable on November 20. C owes D P10,000 payable on October 20. Can compensation also take place although the debts are not payable on the same date? T (third person) tells C (creditor) that T will pay the debt of D (debtor). C agrees. Is D released from his obligation to C? 14. Mga Bayani case. Quality control has been neglected because of the goal to reach the target of at least 13% increase in sales. 15. Suppose in the above problem, D proposed to C that T would substitute D as the new debtor to which C agreed. Is D still liable to C in case of insolvency of T?
16. A and B entered into a contract not specifically provided in the Civil Code. Is the contract valid and binding? S (seller) and B (buyer) entered into a contract of sale. It was agreed that the price shall be determined by T, a third person. Can S or B refuse to be bound by T’s determination of the price if he does not agree with the amount thereof? 17. In a contract containing an option period, when is the offerer not allowed to withdraw his offer even before acceptance by the offeree? When is the offerer allowed to withdraw his offer even after acceptance? Suppose in the same problem, what S sold to B, hardware owner, are 500 bags of cement. S had every reason to believe that the price of cement would go down. After two weeks, it did go down. Has B the right to have the sale annulled? 18. S sold to B for P100,000 a parcel of land belonging to S located in his hometown without specifying its exact location and area. Is the sale valid? S has several pigs. Under a contract of sale, S binds himself to deliver a pig to a B for P3,000 if the pig has a weight of at least 30 kilos. State the binding effect of the sale. 19. S sold to B a specific parcel of land for P500,000. B failed to pay. Has C the right to have the sale declared void by the court on the ground of absence of cause for nonpayment of the price? X gave P10,000 to Y who signed a receipt stating: :This is to acknowledge payment by X in the amount of P12,000.” X later complains that he received nothing from Y for the P10,000. Is Y bound to return the P10,000? S (seller) and B (buyer) entered into a contract of sale of a parcel land. The sale is embodied only in a private document and not in a public instrument because it was not acknowledge before a notary public as required by law. Is the sale valid? 20. In the same example, what rights, if any, are acquired by the contracting parties? S sold his horse “X” to B under a written contract of sale. What B thought S was selling him is horse “Y.” Can S ask for the reformation of the contract against the obligation of B who is agreeable to the sale of horse “X?” Suppose in the same example, S was intending to sell his horse “Y.” Give the three (3) cases when he can ask for the reformation of the contract. 21. S sold to B his condominium unit “including all its contents.” In the unit, there is an antique chair belonging
to X agreed to sell to S. Is the chair to be included in the sale of the unit? Suppose in the same problem, the professional fee was agreed upon, but it is not clear from the written contract prepared by X upon the request of Y whether it should be fixed amount of P200,000 or 6% of the cost of construction. How much is Y liable to pay? 22. D owes C P100,000. Since D fails to pay, C expressed its willingness to accept the car of D, with the same value, more or less, in payment of his debt. D, in bad faith, sold the car to X. Has C the right to ask for the rescission of the sale? In the same problem, suppose S, upon reaching the age of majority, decided to ratify or respect the contract. Has B the right to refuse the ratification and demand mutual restitution of the property and the price?
23. I, an insane person, entered into a contract with M, a minor. What is the effect of ratification: a. By either; and b. By both, after becoming incapacitated? S orally agreed to sell his piano for P7,000 to B who made a partial payment of P1,000. Later, S denied there was such a sale. Can B enforce the sale considering that the contract was oral and the price was more than P500? 24. In consideration of P10,000 given by X to Y, the latter agreed to burn the house of Z. Later, X told Y to forget the agreement and to return the money. Y refused. Is X entitled to recover from Y? M, a minor, bought a bicycle for P2,000 from N, who is not a minor. Under the law, the contract is voidable because of his minority. Give the situation by reason of which M cannot recover the P2,000 from N.
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