OBLIGATIONS AND CONTRACTS SAMPLEX
1. Dyosa and and Adonis A donis entered i nto nto a contract of loan loa n in March 15, 2002 where Dyosa borrowed from Adonis the amount of US$25,000.00 when the exchange rate rate is P55.00 to US$1.00 payable in Philippin Phi lippine e Peso on o n or before December 31, 2007, when the exchange rate is P31.00 to US$1.00. Kulas executed a surety to secure the loan on December 20, 2007. The Bangko Sentral ng Pilipinas declared that there is an unusual deflation in the value of the peso. On January 25, 2008, Kulas te te ndered to Adonis the amount of P820,000.00 P820,000.00 plus interest in the the form of cashier cas hier’s ’s c heck. heck. Adonis refused refused to accept such payment because because of
the following reasons o o
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The The amount to to be paid pai d should should be P1,375,000.00, P1,375,000 .00, excluding excluding interest The The payment payment should should be in cash He is not compell compe lled ed to accept pay pa yment from Kulas because he is not the debtor
Decide Decid e with reasons(20 reasons(20 pts) 2. Magulang Magulang bought 2 diamond diamo nd earrings earri ngs from Masiba va va lued at P200,000.00 which he can sell at 20% margin. Since they are good friends it was agreed that Magulang will pay “whenever” his means permit him otherwise he has to return the same. Magulang was able to sell said pieces of jewelry in two (2) equal installments on July 25, 2008. In the evening of August 2, 2008, Magulang offered Masiba P100,000.00, the only money he had collected, but Masiba refused to accept the payment. While walking home from the residence of Magulan Magulang, g, two men, armed with bread k nives, ives, sn s natch atc hed the purse purse a nd ran away. On the following week, magulang offered Masiba P80,000.00, the 2 nd installment less his commission. However Masiba refused the payment also because it’s not the full payment . Thereafter Magulang met Maluho, Masiba’s wife, to whom he
gave the P80,000.00 with the request that she turn the money over to Masiba, Maluho did not turn over said money but instead used it to buy plane tickets to Nigeria for her and Masiba so they can visit Maluho’s parents. Following a
quarrel, Masiba made a demand upon Magulang to pay the amount of P180,000.00 or return the pieces of jewelry. Magulang interposed the following defenses: o o o
That That the the first P100,000.00 P100,00 0.00 was lost due to fortuitou fortuitous s event The The P80,000.00 was paid already He canno canno t be faulted because beca use it is Masiba Masiba who refused to accept accep t his payment, and that
OBLIGATIONS AND CONTRACTS SAMPLEX
o
His obligation to pay is not yet due because no period has been agreed upon
Decide whether the above defenses are tenable (25 points) 3. Tango, Tinga, Tenga are solidary
debtors under a loan obligation of
P300,000.00 which has fallen due. Taptap, the creditor has condoned Tenga’s
entire share in the debt. Since Tinga has become insolvent, Taptap makes a demand on Tango to pay the debt. How much, if any, Tango may be compelled to pay and to what extent, if at all, can Tenga be compelled by Tango to contribute to such payment? (10pts) 4. Guapo delivered his car valued at P300,000.00 to Pogi to be sold on 5% commission upon agreement that if the car is unsold, Pogi shall return the car to Guapo. During the onslaught of typhoon Milenyo, Pogi uses the car to go to a hotel. While the car is parked by the side street near Manila Motel, the car was carnapped. Because of poor visibility and raging floods, the carnappers hit a tree and leaves the car a total wreck. Pogi claims fortuitous event to absolve him from any obligation. Discuss (15pts) (a) May the debtor withdraw the thing consigned? Discuss (7.5pts) (b) When does loss or destruction of the thing result to extinguishment of the obligation? (7.5 pts) 5. Bob, the builder entered into a crontract with Mr. Bean to build the latter’s house for P1,000.00. The contract provides that if Mr. Bean fails to pay the amount on December 25, 2006, he shall pay a surcharge of 10% for every day of default until full settlement of his oblgation. Mr. Bean did not pay on time. Bob the builder went to Court to recover the amount plus the penalties and damages. The Kangaroo Court decided in favor of Bob, awarded surcharges and additional 6% per annum as penalty. Mr. Bean asks you (a) if the Kangaroo Court is correct and (b) what are the three (3) purpose of a penalty clause (15 points) 6. Dino sued Ben for damages because the latter had failed to deliver the antique Mercedes benz car Dino purchased from Ben - which was - b y agreement - due for deliver y on Dec. 31, 1993. Ben, in his answer to Dino’s complaint, said Dino’s
claim has no basis for the suit, because as the car was being driven to be delivered to Dino on January 1, 1994, a reckless truck driver had rammed into the Mercedes Benz. The trial court dismissed Dino’s complaint, saying Ben’s
obligation had indeed been extinguished by force majeure. Is the trial court correct?
OBLIGATIONS AND CONTRACTS SAMPLEX
7. In 1960, the Bureau of Lands issued a Homestead patent to Elias Palos. Under the Public Land Law, any sale or conveyance made involving said Homestead is void. 3 years later, Elias Palos sold the homestead to Enrico Fernando. Elias Palos died on March 15, 1990, and his heirs filed inaction to recover the homestead from Enrico Fernando on the ground that its sale by their father to the latter is void under Section 188 of the Public Land Law, Enrico Fernando, contended, however, that the heirs of Elias Palos cannot recover the homestead from him anymore because: a) their action has already prescribed, b) Elias Palos was in pari deluxe, and, c) the heirs are guilty of laches. Decide with Reasons. 8. Totoy Bato a Citizen and a resident of New Jersey, USA, under whose law he was still a minor, being only 20 years of age. He was hired by the ZTE corporation of Manila to serve for two years as its Chief computer programmer. However, after serving only 1 year, he resigned from ZTE company, because he was enticed by GMA/FG Corp. by offering more advantageous terms. ZTE Corporation sued him and GMA/FG Corp in Manila for damages arising from the breach of his contract of employment. He interposed his minority as a defence and asked for annulment of the contract on the ground ZTE corporation disputed this by alleging that since the contract was executed in the Philippines under whose law the age of majority is 18 years, under he was no longer a minor at the time of the perfection of the contract. o
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a. will the suit against Totoy Bato prosper? b. will the suit against GMA/FG Corp prosper and what would be the basis of its liability?
9. Laida and Miggy entered into a lease contract over Monte Building on Feb 1, 2005 where Miggy is expressly granted a right of first refusal should the lessor, Laida, decide to sell both the land and building. However, on March 30, 2007, Laida sold the property to Mackoy who knew about the lease and in fact agreed to it. Thereafter, after being informed of the new lessor, Miggy made a demand and subsequently filed an action against both lessor-seller, Laida and the buyer Mackoy, (a) to rescind the sale and (b) to compel the specific performance of his right of first refusal in the sense that the lessor should be ordered to execute a deed of absolute sale in favor of the lessee at the same price. The defendants contended that the plaintiff can neither ask rescission of the sale nor compel specific performance of a right of first refusal. Decide the case. 10. In two separate documents sig ned by him, Miguel Tonto "obligated himself" each to Glow Labandera and to Perlie Estrada, thus - "To Glow, my true love, I obligate myself to give you my one and only hose when I feel like it."
OBLIGATIONS AND CONTRACTS SAMPLEX
"To perlie, my true sweetheart, I obligate myself to pa y you the P500,000.00 owe you when I feel like it." Months passed b ut Miguel never bothered to make good his promises. Glow and Perlie came to consult on you whether or not they could recover on the basis of the foregoing settings. What your legal advice be to Glow? To Perlie? 11. Suppose that under an obligation imposed b y a final judgement, the liability of the judgment debtor is to pay the amount of P6,000.00 but both the judgement debtor and the judgement creditor subsequently entered into a contract reducing the liability od the former to only P4,000, is there an implied novation which will have the effect of extinguishing the judgement obligation and creating a modified obligatory relation? Reasons. o
How is a civil obligation distinguished from a natural obligation? Give an exampe of natural obligation.
12. Beauty La Fea offered to sell her BMW to Regina Bilog for P600,000.00. After inspecting the car, Regina Bilog offered to buy it for P500,000. This offer was accepted by Beauty La Fea. The next day, Beauty offered to deliver the car, but Regina being short of funds, secured postponement of the delivery, promising to pay the price upon arrival of the steamer, Ogie da Pogi. The steamer however never arrived because it was wrecked by a typhoon and sank somewhere off the coast of Samar. o
Can Beauty compel Regina to pay the purchase price? Why?
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Is the promise to pay made by Regina conditional or with a term? Why?
13. Ian and Asha met on the plane to Cebu. Ian offered Asha to stay in his resort in Bohol. Asha was so impressed with the place she hinted a desire to lease the same. On March 5, 2007, Ian emailed Asha offering to lease the resort. Asha opened her email on March 6, 2007 but only sent the telegram of acceptance on March 8, 2007. On March 7, Ian had a change of the heart and withdrew his offer. Asha read the email right after sending the telegram to Ian. Was the contract perfected? 14. Ismael is married to Marta. in 1999, Ismael met Tisay a 17yr old GRO and went crazy rabid with desire. Ismael donated to Tisay a house and lot which he and Marta previously occupied with their 3 children. The donation was, ofcourse, subject to the condition that Tisay becomes Ismael's mistress. Tisay accepted the donation but demanded to have a condominium unit as their love nest. In
OBLIGATIONS AND CONTRACTS SAMPLEX
2006, Ismael died of a heart attack. Marta and her 3 children went back to the house donated to Tisay and decided to live there. Tisay goes to you for advice.
