Quiz 13
Quiz 13
Quiz 13
13
I
X sold and delivered various items of merchandise to Y amounting to P200,000.00. When Y
failed to pay his obligation, X sued him for collection of sum of money, but Y filed an answer
contending that there should be compensation with his commission over the merchandise X sold
and delivered to A, as it has been the practice of X to deal with Y first before he would deal with
Z. Is the defense proper? Why? (10%)
II
Sarah had a deposit in a savings account with Filipino Universal Bank in the amount of five
million pesos (P5,000,000.00). To buy a new car, she obtained a loan from the same bank in the
amount of P1,200,000.00, payable in twelve monthly installments. Sarah issued in favor of the
bank post-dated checks, each in the amount of P100,000.00, to cover the twelve monthly
installment payments. On the third, fourth and fifth months, the corresponding checks bounced.
The bank then declared the whole obligation due, and proceeded to deduct the amount of one
million pesos (P1,000,000.00) from Sarah’s deposit after notice to her that this is a form of
compensation allowed by law. Is the bank correct? Explain. (10%)
III
A, stockholder of X Co., was made defendant in a suit instituted by the corporation for the
payment of an indebtedness of P10,000. A contends that such debt must be compensated by his
shares of stock with the plaintiff corporation. Is this correct? Reasons. (10%)
IV
X, who has a savings deposit with Y Bank in the sum of P1,000,000.00, incurs a loan obligation
with the said Bank in the sum of P800,000.00 which has become due. When X tries to withdraw
his deposit, Y Bank allows only P200,000.00 to be withdrawn, less service charges, claiming that
compensation has extinguished its obligation under the savings account to the concurrent amount
of X’s debt. X contends that compensation is improper when one of the debts, as here, arises
from a contract of deposit. Assuming that the promissory note signed by X to evidence the loan
does not provide for compensation between said loan and his savings deposit, who is correct?
(10%)
V
NCB of Jeddah, Saudi Arabia remitted through PNB $2,627.11 for the benefit of Ramon.
However, PNB, without the knowledge of Ramon, deducted said amount from his indebtedness
to PNB by way of set off or compensation. Does PNB as a local bank, while acting as local
correspondent bank, have the right to intercept funds being coursed through it by its foreign
counterpart for transmittal and deposit to the account of an individual and apply said funds to
certain obligations owed to it by the said individual? (10%)
VI
Brimo was a stockholder and treasurer of a corporation. Brimo paid a sum greater than the value
of his shares. As a treasurer, Brimo owed the corporation a certain sum. May Brimo’s credit be
compensated with his indebtedness as treasurer? (10%)
VII
A owes B P500,000. C is the guarantor of A. B owes A P100,000. When B sues A and A cannot
pay, for how much will C be liable? (10%)
1|Page
VIII
A owes B P500,000. C is the guarantor of A. B owes C P500,000. When B sues A for the
P500,000, may A successfully put up the defense of compensation in that, after all, his creditor
(B) owes C the same amount? (10%)
IX
A owes P1,000,000 due on April 2; B owes A P200,000 due also on April 2. On February 4
(when there was no legal compensation yet), B assigned his P1,000,000 credit to C, with the
knowledge but without the consent of A. On April 2, how much can C successfully collect from
A? (10%)
X
A owes B P1,000,000. B owes A in turn P200,000. Both debts are already due. Later, B assigns
the P1,000,000 credit to C, without the knowledge of A. This assignment was made on July 1.
On July 15, a P250,000 debt of B in favor of A matured. A learned of the assignment on August
1. On August 23, a P150,000 debt of B in favor of A matured. Later, C asks A to pay his debt.
How much can C successfully collect from A? (10%)
2|Page