OBLIGATIONS AND CONTRACTS

(Final Examinations)

Answer briefly but comprehensively. Do not repeat the question. A mere “yes” or “no”
answer without any corresponding discussion/explanation will not be given credit.
GOOD LUCK!!!

1) John has a diamond ring. He allowed Roy to assume apparent ownership over
the ring so that Roy can sell the same and remit the proceeds to him (John).
Instead Roy pledged the ring to Cristy in order to obtain a loan. Later, when John
demanded the return of the diamond ring, Roy refused to return on the ground
that John is already estopped to claim ownership of over the ring. Is Roy
correct? Explain your answer. (5 points)

2) Matthew, Mark, Luke and John bought a house and lot which would be used as
their common rest house but the property was registered in the name of Mark
alone. Mark leased the property and collected the rentals but when asked by
Luke and John for an accounting, he refused to so account on the ground that
based on the certificate of title, he is the owner of the house and lot. Is Mark
correct? Why? (5 points)

3) William owes Noe P100,000.00. Noe brought an action for collection of sum of
money against William but lost the case due to insufficiency of evidence. The
judgment became final and executory. Later, William voluntarily paid Noe. Can
William later recover what he has paid Noe? Why? (5 points)

4) Jed verbally donated his house and lot to Brenna which was also verbally
accepted by the latter when Jed delivered the key to the house to her. What was
the nature of the contract entered into by Jed and Brenna? Explain. (5 points)

5) Tom, Dick and Harry are solidary debtors to Tito, Vic and Joey who are joint
creditors for the amount of P90,000.00. Tom’s share is due on February 15,
2020, Dick’s share is due on February 20, 2020 and Harry’s share is due on
February 25, 2020. Harry’s consent was obtained with the use of fraud.
Assuming that Tom’s share was not yet paid, how much can Tito collect from
Harry on February 19, 2020? Why? (5 points)

6) Sam is obliged to give his car to Francis on February 14, 2020 but which he
failed to do despite the demand made by Francis on February 16, 2020. On
February 18, 2020, the car was totally destroyed due to Typhoon Weng. Is the
obligation of Sam extinguished? Why? (5 points)

7) Jess sold his notebook computer, which is valued at P40,000.00, to Rey for
P15,000.00. At the time of the sale, he did not know the true value of his
computer. May the contract of sale be rescinded? Why?

8) Ric borrowed the car of Ben with the promise to return it on or before March 15,
2020. Instead of returning the car, Ric sold and delivered the car to Dino on
March 5, 2020. On March 12, 2020, Ben donated the car to Ric who, after
acquiring ownership, went to Dino seeking to recover the car from the latter.
Because of Dino’s refusal to return the car to him, Ric brought an action in court.
Will his action prosper? Why? (5 points)

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9) Alex sold to Jessie his BMW, which is valued at P2M, for P1,000.00. Is the
contract of sale valid? Why? (5 points)

10) Marie offered to sell her car to Carmie for P280,000.00 and gave the latter the
option to buy it on or before March 31, 2020. On March 20, 2020, Carmie went
to Marie to exercise her option but Marie refused because somebody offered to
buy the car for P350,000.00 and also because there was no consideration for the
option. Carmie sued Marie to compel the latter to accept payment and execute
the deed of sale in her favor. If you were the judge, how would you decide the
case? Support your answer. (5 points)

11) In 1990, Rex borrowed from Jed the amount of P20,000.00 which he failed to
pay. On February 15, 2018, Rex voluntarily paid Jed who accepted the payment.
On March 1, 2008, being badly in need of money, Rex demanded the return of
the P20,000.00 on the ground that there was wrong payment, the debt having
already prescribed. Jed refused to return the amount paid. May Rex succeed in
collecting if he sues Jed in court? Explain your answer. (5 points)

12) Joseph and Angelo entered into an oral contract of sale of a house and lot.
Angelo paid the consideration. When he demanded the delivery of the title,
Joseph refused contending that there was no written contract evidencing the
sale. Can Angelo compel Joseph to execute a written contract of sale for the
said house and lot? Explain. (5 points)

13) On March 5, 2019, Gliza wrote a letter to Gerald offering to him the lease of her
building. On March 8, 2019, at 10:00 o’clock in the morning, Gerald sent a letter
of acceptance which was received by Gliza at 4:00 o’clock in the afternoon on
March 9, 2019. Earlier that day, at around 9:00 o’clock in the morning, Gliza sent
Gerald a letter withdrawing her offer. Was the contract perfected? Reasons. (5
points) (5 points)

14) Febbie, Ervi and Naomi entered into a contract of oral partition of the parcel of
land which they inherited from the parents. Is the contract enforceable? Why?
(5 points)

15) Janice sold her cellphone worth P20,000.00 to Jane for P3,000.00. Two (2) days
later, Janice informed Jane that she is rescinding the sale on the ground that she
suffered economic injury by more than ¼ of the value of the cellphone. Does
Janice have the right to rescind? Explain. (5 points)

16) Peter sold a parcel of land to his nephew, Paul, who is a minor. Two (2) months
later, Peter died. Peter’s children then brought an action to annul the sale on the
ground that Paul was a minor and therefore without legal capacity to enter into a
contract. If you were the judge, would you grant the annulment of the sale?
Why? (5 points)

17) Heart is obliged to give her Labrador to Jake on February 14, 2020 while Jake is
obliged to give his laptop to Heart on February 20, 2020. On February 18, 2020,
Heart and Jake agreed to compensate each other’s obligations and consider
their respective obligations as extinguished. Is the compensation valid? Explain.
(5 points)

18) Mae borrowed P100,000.00 from Ruby. The loan is secured by a chattel
mortgage on Mae’s Toyota Altis. Without the knowledge of May, Rey paid Ruby
the amount of P100,000.00 for Mae’s debt. Rey subsequently demanded

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 reimbursement from Mae. If Mae cannot pay, can Rey foreclose the mortgage on
Mae’s car? Why? (5 points)

19) Val sold and delivered his motorcycle to Ken on credit. It was agreed that Ken
should not sell nor in any way dispose of the motorcycle until he has fully paid
the price. Subsequently, Ken sold the motorcycle to Jay although Ken has not
yet fully paid the price. Can Val cancel the sale to Jay on the ground that Ken
has not fully paid the price of the motorcycle? Explain. (5 points)

20) Leo and Lyra entered into a contract whereby Leo was to give Lyra cash in the
amount of P25,000.00 on March 20, 2020. Later, they agreed that instead of
cash, Leo would give his laptop to Lyra. Supposing the laptop was totally
destroyed on March 18, 2020 due to a fortuitous event, can Lyra compel Leo to
give P25,000.00 as originally agreed by them? Why? (5 points)

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