Mabuhay
Mabuhay
TITLE I OBLIGATIONS.
3. An accused who was acquitted from a criminal case can no longer be sued and held
liable for damages.
- False, Article 29 states that when the accused in a criminal prosecution is
acquitted on the ground that his guilt has not been proven beyond reasonable
doubt, a civil action for damages for the same act may be instituted.
4. An employer can be held civilly liable for the quasi-delict of his family driver.
- True, 2180(5) an employer can be held civilly liable for the damages caused
by their employees
- Jurisprudence: SILI v. CA
5. An employer can be held civilly liable for the crime committed by his driver.
- True, Article 100 of the RPC states that an employer can be subsidiarily be
liable for the actions of his employees provided that he has acted with
negligence upon employment.
- Jurisprudence: LRT v. Natividad
6. The obligor and obligee can stipulate for a standard of care lower than the diligence of
a good father of a family.
- False. Article 1173 Par (2). If a law or contract does not state the diligence
which is to be observed in the performance, that which is expected of a good
father of a family SHALL BE required. (- Atty. Taleon)
7. In determinate obligations, the debtory can compel the creditor to accept a different
prestation, specially if more valuable than what he promised to deliver.
- False, Article 1244 states that a creditor is not compelled to accept an object
which was not the prestation agreed upon even if the latter be more valuable.
8. The debtor cannot be held liable for breach of obligation if the breach is due to
fortuitous event.
- False, Article 1174. Upon stipulation, Nature of the obli when there is
assumption of risk, or by Law
9. If negligent act or omission of the obligee concurred with the negligence of the obligor
in causing the obligee’s injury, he can no longer recover damages.
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10. If the obligee does not make any demand, the obligor will never incur in delay.
- False, Art. 1169. The debtor may be in delay if the following requisites occur
1.) stipulation or law states; 2.) when by the nature and circumstances of the
obligation, the determination of time waa the controlling motive of the
contract; 3.) demand would be useless as the obligor made it impossible to
perform.
tama
II. State the essential conditions to be met in order to exempt the obligor from liability
in case of a fortuitous event
- Event is independent of the will of the obligor;
- Event is unforeseeable or inevitable
- Event has such a character that it would deem the obligation impossible to perform
- Free from aggravation of the injury the creditor will suffer
III. State the remedies of the creditor in case the debtor fails to comply with his
obligation.
- Damages, art 1170
- In case of determinate thing, specific performance, art 1165 par 1
- In case of generic, ask for delivery, or it be at his cost
- Obligation to do, be performed at his cost 1167
- Obligation not to do, be undone at expense of debtor 1168
IV. Define.
1. Accion Pauliana
- Art. 1177, the right available to the creditor by virtue of which he can secure
the rescission of any act of the debtor which is in fraud and to the prejudice of
his rights as a creditor. it can only be availed of in the absence of any other
legal remedy to obtain reparation for the injury.
2. Accion Subrogatoria
- Art. 1177, the right to exercise all of the rights and bring all of the actions
which the debtor may have against third persons.
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3. If the obligation is subject to a condition, the obligor, prior to the fulfillment of the
condition, can still dispose the object of the obligation because the obligee doesn’t
have any right to it.
- False; Obligor has duty to take care of it, its loss, deterioration, or
improvements will have consequences subject to article 1189
6. In case of breach of obligation, the obligee can ask for partial performance and
rescission.
- False; obligee can only ask for one of the two remedies; 1191
7. In an obligation with a period, only parties can stipulate or fix the period within which
to fulfill the obligation
- False; Art 1197 courts may fix period provided that no period was fixed
8. The debtor, who is engaged in the business of buying and selling shrimps, borrowed
from the creditor the amount of P100,000 with interest of 2% per month and promised
to pay the creditor as soon as the shrimps are sold. This is an obligation with a period.
- True; Lim vs People
9. Miguel and Micheal solidarily bind themselves to deliver a specific horse, specific
carabao, or tricycle to Laida. The horse and carabao are lost due to the fault of
Miguel. The debtors are liable for damages.
- False; no damages yet, only damages if all are lost; art 1204. Ommission of
who has choice in the alt obli, we apply gen rule that it belongs to debtor,
1200, since only one is practicable, 1202
10. Miguel and Micheal solidarily bind themselves to deliver a specific horse, carabao,
or tricycle to Laida. Without the consent of Miguel, Micheal chose to deliver the
tricycle and communicated the choice to Laida. On due date of the obligation, Miguel
can fulfill the obligation by delivering the carabao.
- False; according to article 1201 of the new civil code, the choice shall make
no effect except from the time it was communicated. Based on the facts, as the
obligation is a solidary one, the communication of one makes the promise
binding. Hence miguel cannot deliver the carabao
11. In facultative obligation, if the principal obligation has become impossible, the
debtor can be held to perform the substitute.
- False; 1206, it is upom the choice of the debtor
12. In facultative obligation, if the principal obligation has been lost through fortuitous
event, the debtor is obliged to perform the substitute.
- False; 1206 obligor is only obliged to perform it after he has communicated
the same
13. In facultative obligation, the debtor is liable if the substitute is lost.
- True provided that he has communicated it already, 1206
3. State the limitation to the power of the injured party to rescind the obligation.
- He can only
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4. State the limitations to the power of the court to fix a period in recession cases.
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5. When may the debtor lose his right to make use of the period.
- When after the obligation has been contracted, he becomes insolvent, unless
he gives a guaranty or security for the debt.
- When he does not furnish to the creditor the guaranties or securities which he
has promised;
- When by his own acts he has impaired said guaranties or securities after their
establishment, and whn through a fortuitous event they disappear, unless he
immediately gives new ones equally satisfactorily;
- When the debtor violates any undertaking in consideration of which the
creditor agreed to the period
- When the debtor attempts to abscond
6. State the rules that govern the responsibility of the the debtor prior to the selection by
the creditor in alternative obligations
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EXTINGUISHMENT OF OBLIGATIONS
QUIZ 3
3. The father of Laida learned that his only daughter is laden of debt and her failure to
pay her debt as it becomes due has tarnished the family reputation. Thus, he went
Miguel, the creditor and tendered payment pf Laida’s debt.
a. The father’s tender of payment extinguishes the obligation because he can
compel Miguel to accept payment to save the family’s reputation.
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b. The payment the father made can be recovered by him from the trust fund of
Laida.
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c. The payment made by the father is a donation and therefore, is not valid
payment when it is without the consent of Laida
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7. For payment to be valid, it must be made by the debtor at the domicile of the creditor.
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8. In determinate obligations, the creditor can receive a thing other than the specific thing
agreed upon and such acceptance of the different thing extinguishes the obligation.
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9. You owe your classmate, P100. You can compel your classmate to accept your payment
consisting of 100 pieces of P1 coin.
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10.the debtor can withdraw the thing consigned:
a. As a right.
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b. As a privilege.
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12. If the thing which the object of the obligation is lost through theft, the obligation is
extinguished.
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14. When a debtor did not collect and instead abandoned his credit, the debt is extinguished
by condonation.
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II. Enumeration.
1. Define and state 2 distinctions of Dacion En Pago and Payment by Cession.
- Dation en pago - a special form of payment whereby the property is alienated by the
debtor to the creditor in satisfaction of a debt in money.
- Payment by Cession - a special form of payment whereby debtor abandons all of his
property for the benefit of his creditors in order that the proceeds thereof the latter
may obtain payment of their credits.
4. State the instances of implied remission under the New Civil Code.
- Art. 1271. The delivery of a private document evidencing credit, made
voluntarily by the creditor to the debtor.
- Art. 1272. Whenever the private document on which the debt appers is found
in the possession of the debtor
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2. The insolvency of the new debtor in delegacion will render the old debtor liable.
- False, Art. 1293.
3. The non-fulfillment of the obligation by the new debtor in delegacion will render the
old debtor liable.
- False, Art. 1295
9. The parents of a college student who died by reason of accident can bring a case
against the insurance company, with which their only son has an existing insurance
policy.
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II. Distinctions
1. Expromision v. Delegacion
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-
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III. Enumeration.
1. How are obligations modified?
- Remission
- Confusion
- Merger
- Compensation
- Novation
2. Autonomy of Contracts
- Art. 1306 - The contracting parties may establish such stipulations, clauses,
terms, and conditions as they may deem convenient, provided they are not
contrary to law, morals, good customs, public order, or public policy
3. Mutuality of Contracts
- Art. 1306 - The contracts must bind both contracting parties; its validity or
compliance cannot be left to the will of one of them.
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TITLE II CONTRACTS.
2. The offeree can still withdraw his acceptance even after he communicated it.
- True, Art. 1319, Acceptance made by letter or telegram does not bind the
offerer except from the time it came to his knowledge.
3. Nars offered to sell his bike to Michael in the amount of 5,000, payable in cash coin at
4:30pm at the Dean’s office. Michael brought and tendered to Nars 5,000 pieces of 1p
coin at 4:00pm. Since Michael already accepted the offer, there is already a perfected
contract of sale.
- False. According the Bangko Central Circular 2007. Tender of payment of
coins shall be valid up to P1,000. Excess thereof shall not be considered legal
tender. Since Michael has yer to pay the P4,000, the contracts of sale has not
been perfected.
4. Nancy offered to sell her farm to Linda for 100,00 and has given the latter 10 days
within which to decide whether she will buy the same. To show her appreciation for
the time given to her, Linda gave Nancy P1,000. The following day, Michael made an
offer to buy Nancy’s farm for P150,000. Thus, she immediately called Linda that she
is no longer selling her farm. Nancy can always withdraw her offer prior to
acceptance of Linda.
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10. In order that a cause is considered existing, it must be stated in the contract.
- False. Art. 1354, Although the cause is not stated in the contract, it is
presumed that it exists, and is lawful, unless the debtor proves contrary.
11. Cres obliged himself to deliver an animal to Nancy for P5,000 on March 23, 2017 to
which Nancy agreed. Nancy can demand the delivery of the animal on March 23,
2017 because there is a valid contract.
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14. “Dealers Talk” constitute fraud and therefor makes a contract entered by reason of it
voidable.
- False,
II. Enumeration
1. What are the requisites of consent?
- Manifested by concurrence of the offer and the acceptance. (Art. 1319-1326)
- Parties must possess the necessary legal capacity (Art. 1327-1329)
- Must be Intelligent, Free, Spontaneous, and Real. (Art. 1330-1346)
2. State those who do not have legal capacity to enter into a contract.
- (1) Minors
- (2) Insane or Demented Persons, and Deaf-Mutes who do not know how to
read or write (Art. 1327)
- (3) Married Women of Age in specific cases
- (4) Persons suffering Civil Interdiction
- (5) Incompetents under guardianship
3. What are the requisites in order that a thing, right, or service can be the object of a
contract?
- (1) Within the Commerce of Man. Susceptible of appropriation and
transmissible from one person to another
- (2) Real or Possible. Should exist at the moment of celebration of the
contract, or atleast in the future
- (3) Licit. Should not be contrary to law, public morals, good customs, public
order, or public policy.
- (4) Determinate as to its kind, and not necessarily quantity.
5. In a contract of loan with real estate mortgage, what is the cause and what is the object?
-
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3. If a defect in the contract is due to fraud or mistake, the remedy of the parties is to file
for reformation of the contract.
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7. The inadequacy of the price in a contract of sale is sufficient ground to rescind the
contract.
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8. The remedy to set aside the transfer or assignment of a property made by the
debtor/seller to his son in order to shield said property from the creditor is Accion
Pauliana.
- False, MB v Silverio, Accion Pauliana is a last resort to rescind contracts in
order to protect a creditor from being defrauded
II. Enumeration
1. What are the contracts that are required to be in a public document under Article 1358.
- (1) Acts and contracts which have for their object the creation, transmission,
modification or extinguishment of real rights over immovable property; sales
of real property or of an interest therein are governed by articles 1403, No. 2,
and 1405
- (2) The cession, repudiation or renunciation of hereditary rights or of those of
the conjugal partnership of gains;
- (3) The power to administer property, or any other power which has for its
object an act appearing or which should appear in a public document, or
should prejudice a third person;
- (4) The cession of actions or rights proceeding from an act appearing in a
public document.
- (5) All other contracts where the amount involved exceeds five hundred pesos
must appear in writing, even a private one.
2. What is the doctrine of Reformation of Contracts and state the requisites of the
doctrine.
- Article 1359. When, there having been a meeting of the minds of the parties to
a contract, their true intention is not expressed in the instrument purporting to
embody the agreement, by reason of mistake, fraud, inequitable conduct or
accident, one of the parties may ask for the reformation of the instrument to
the end that such true intention may be expressed.
- (1) There must be a meeting of the minds of the parties.
- (2) Their true intention is not expressed in the instrument.
- (3) Such failure to express true intention is due to mistake, fraud,. Inequitable
conduct, or accident.
4. State atleast 4 distinctions of Rescission of Contracts in general under Article 1380 and
Rescission under Article 1191.
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QUIZ 7
2. Miguel, 20 y.o., sold an iPhone X to 17 y.o. Miguelito for the sum of P15,000 at the
time when he was badly in need of money to pay his tuition fee. Miguel can file an
action to annul the contract.
- False. Art. 1397.
3. Ratification of a voidable contract requires the consent of the guilty party.
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4. The prescriptive period to file an action for annulment is four years from the execution
of the contract.
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5. The Statute of Frauds is applicable to all kinds of contracts and in Art. 1403(2),
whether executory and consummated.
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7. The principle of the contract which fails to comply with the Statute of Frauds cannot be
enforced means that the parties cannot execute and get what is due them under the
contract.
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II. Enumeration
1. Voidable Contracts (Art. 1390)
- Where one of the parties is incapable of giving consent.
- Where the consent is vitiated by mistake, violence, intimidation, undue
influence or fraud.
III. Distinctions
1. Void v. Inexistent Contracts
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UNENFORCEABLE, VOIDABLE, NATURAL OBLIGATIONS, ESTOPPEL
QUIZ 8
2. The ratification by the parent of one of the incapacitated parties will not make the
contract perfectly valid.
- True. Art. 1407. In a contract where both parties are incapable of giving
consent, express or implied ratification by the parent, or guardian, of one of
the contracting parties shall give the contract the same effect as if only one of
them were incapacitated.
3. The buyer in a contract of sale entered into by an agent without authority from the
principal cannot set up the defense of unenforceability.
- True. The capacitated party to a contract cannot set up the defense of
unenforceability on the incapacity of the incapacitated party.
5. In case the consent is vitiated by fraud or mistake, the prescriptive period commences
from discovery, which is the time of actual knowledge.
- False, MWSS VS CA, Commences from the time there is constructive notice
to the world (in such case, when it was registered)
II. Objectives
1. What are the characteristics of Void or Inexistent Contracts.
- Not Susceptible of Ratification
- Cannot be assailed by 3rd person
- Do not produce any legal effects (quod nullum est nullum producil effectum)
- Action or defense of nullity or inexistence is imprescriptible
- Defect consists in fact that they lack absolutely wither in law one or some of
the elements of a valid contract
5. Define:
a. Estoppel
- Art. 1431. A condition or state by virtue of which an admission or
representation is rendered conclusive upon the person making it, and cannot be
denied or disproved as against the person relying thereon.
b. Estoppel in Pais
- Estoppel by Conduct or Silence. When one by his acts, representation or
admissions, or by his silence when he ought to speak out, intentionally or
through culpable negligence, induces another to believe certain facts to exist
and such other rightfully relies and acts on such belief, as a consequence of
which he would be prejudiced if the former is permitted to deny the existence
of such facts. (Jurado)
c. Estoppel by Deed
- Technical Estoppel. When a party to a deed and his privies are precluded
from asserting as against the other party and hid privies any right or title in
derogation or from the deed, or from denying any material fact asserted
therein. (Jurado)
d. Estoppel by Laches
- Barred from setting an action against another person due to the capability to
set it up but did not do so within the reasonable amount of time the action
aroused and it would be injurious to the defendant if such case pushed
through. Furthermore it gives a presumption of abandoning the action
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I. Bino sued Ben for damages because the latter had failed to deliver the antique
Mercedes Benz car Bino purchased from Ben which was — by agreement — due
for delivery on Dec. 31. 1993. Ben, in his answer to Bino’s complaint, said Bino’s
claim has no basis for the suit, because as the car was being driven to be
delivered to Bino on Jan. 1, 1994, a reckless truck driver had rammed into the
Mercedes Benz. The trial court dismissed Bino’s complaint, saying Ben’s
obligation had in indeed been extinguished by force.
II. 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. Three years later, Elias sold the homestead to Enrico Fernando. Elias died
on March 15, 1990 and his heirs filed an action to recover the homestead from
Enrico on the ground that its sale by their father to the latter is void under the
Public Land Law. Enrico contended, however, that the heirs of Elias Palos
cannot recover the homestead from him anymore because:
a) The action has prescribed
- No. 1410. Void contracts do not prescribe
b) Elias was in In Pari Delicto
- Yes
III. Totoy Bato, a citizen and resident of New Jersey, USA. under whose law he
was still a minor, being only 20 years of age. He was hired by ZTE Corp. of
Manila to serve for two years as its chief computer programmer. However, after
serving only one (1) year, he resigned from ZTE, because he was enticed by
GMA Corp., by offering advantageous terms. ZTE sued him and GMA for
damages arising from breach of his contract of employment. He interposed his
minority as a defense and asked for annulment of the of the contract on the
ground that ZTE disputed this by alleging that since the contract was executed in
PH under whose law the age of majority is 18. He was no longer a minor at the
time of perfection of the contract.
1. Will the suit against Totoy Bato prosper?
- No capacity to act. Cannot prosper on the grounds that totoy bato is
still a minor under us law. Article 15 of the NCC shall govern the
nationality principle
2. Will the suit against GM prosper? What is the basis of their liability?
- Yes. Article 1314
IV. 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 respect it. Thereafter, after being informed of the new lessor, Miggy
made a demand and subsequently filed an action against both the lessor-seller,
Laida and the buyer, Mackoy (a) 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 thecsale
not compel specific performance of a right of first refusal.
2nd - “To Perlie, my true sweetheart, I obligate myself to pay you the
P500,000 I owe you... when I feel like it”
Months passed but, Miguel never bothered to make good his promises. Glow and
Perlie came to consult you on whether they could recover on the basis of the
foregoing documents.
Advise them!
- Yes, Glow and Perlie can still recover because the obligation is one
with a period. According to Article 1193 of the New civil code an
obligation with a period is one where the execution of the obligation is
dependent upon the happening of an event that will surely happen, and
additionally, as substantially provided by article 1197 paragraph 2 of
the New Civil Code, the courts may fix a specific period when the
obligation with a period depends upon the will of the debtor. Based on
the facts, the two promissory notes given by Miguel Tonto both give
the indication of the word “when” indicating that it will happen
dependent upon the will of Miguel, the debtor. Thus, since it is an
obligation with a period and it is dependent upon the sole will of
Miguel, the courts may nonetheless fix a period for the performance of
the obligation as provided by the new civil code. Hence; Yes, Glow
and Perlie may still recover because the obligation is one with a period
VI. A) Suppose that under an obligation imposed by a final judgement, the liability
of the judgement debtor is to pay the amount of P6,000 but both the judgement
debtor and the judgement creditor subsequently entered into a contract reducing
the liability of 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? Decide!
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VII. Beauty La Fea offered to sell her BMW to Regina Bilog for P600,000. After
inspecting the car, Regina offered to buy it for P500,000. This offer was accepted
by Beauty. The next day, Beauty offered to deliver the car, but Regina being
short of funds, secured postponement of delivery, promising to pay the price
“upon the arrival of the steamer, Ogle de Pogi”. The steamer however never
arrived because it was wrecked by a typhoon and sank somewhere off the coast
of Samar.
A) Can Beauty compel Regina to pay the purchase price?
- Yes, since there is already a perfected contract because there is concurrance of
offer and acceptance. Beauty may compel Regina, however, she will have to
wait for the arrival of the steamer, which would have arrived if not for the
shipwreck.
VIII. 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 that she hinted a desire to lease
the same. On March 5, 2007, Ian e-mailed Asha offering to lease the resort. Asha
opened her e-mail on March 6, 2007 but only sent the telegram of acceptance on
March 8, 2007. On March 7, Ian had a change of heart and withdrew his offer,
Asha read the e-mail right after sending the telegram to Ian.
IX. Ismael is married to Marta. In 1999, Ismael met Tisay, a 17 y.o. 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 subject to the
condition that Tisay becomes Ismael’s mistress. Tisay accepted the donation but
demanded to have a condominium as their love nest. In 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.
Advise Tisay.
- Tisay has no cause of action. The donation is void. Under Art. 1183, Tisay is
also a minor and incapable of giving consent.
X. Contract to sell. Sale of one lot among the 5 lots owned by the vendor, without
stating which of the lots was the subject of the sale. The parties subsequently
couldn’t agree which lot was sold.
What the status of the contract?
- There is no contract of sale because it was never perfected. According
to Article 1319, consent is manifested by the meeting of the offer and
the acceptance of the thing and the cause which constitutes the
contract. THE OFFER MUST BE CERTAIN AND THE
ACCEPTANCE ABSOLUTE, a qualified acceptance constitutes no
counter offer. Case at bar, they never specified which lot it was, hence;
from the creation of the contract there was no perfection due to the
absence of certainty of the offer.
XI. The husband assumed sole administration of the family’s mango plantaion
since his wife worked abroad. Subsequently, without his wife’s knowledge, the
husband entered into an agreement with a company, giving it possession and
management of the plantation with power to harvest and sell the fruits and apply
the proceeds to the payment of a loan he got.
What is the standing of the contract?
-
XII. Contract of Sale. Delivery within 30 days but not guaranteed. Obligor
delivered after 30 days because of transportation troubles and the government
red-tape. Obligee refuse to accept the delivery.
Is the refusal justified?
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XIII. (A) Contract of Loan. To be paid within 2 years from the date of execution.
Obligor promised to deliver a car as security/guarantee. Obligor failed to deliver
the car. Obligee now demands immediate payment of loan.
Can the obligee demand immediate payment?
- Article 1198. He shall lose the right to make use of a period. When he
does not furnish to the creditor the guaranties and securities he
promised.
(B) Contract of Loan. Obligor failed to pay on due date. Obligee gave a grace
period of 5 days. Obligor tendered payment using a manager’s check. Obligee
refused to accept the check. Grace period expired.
May the obligation be considered extinguished?
- No. Article 1256. If the creditor to whom tender of payment has been
made refuses without just cause to accept it, the debtor shall be
released from responsibility by the consignation of the thing, or sum
due.
XIV. Lease contract for 18 months. Agreement was not made in writing. Lessee
paid 2-months deposit and issued post-dated check to lessor. Because of the
showing of good faith and immediate payment by the lessee, lessor said that
should he decide to sell the property, he would offer it first to the lessee. Lessee
occupied the property.
(A) Lessee received a scholarship grant abroad. Lessee decided to study
abroad. Lessee filed a case for the return of the post-dated checks. Lessor
filed a motion to dismiss on the ground that the contract is unenforceable.
You’re the Judge. Will you grant the dismissal?
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(B) Lessee decided to stay and declined the scholarship grant. Lessor sold the
property to Jun. Lessee filed a case asking for damages and cancellation
of the sale. Lessee wants to exercise his right to buy the property.
Is the case meritorious?
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XV. Novation. At the instance of a 3rd person, new debtor substituted old debtor
without latter’s knowledge but with consent of the creditor. New debtor became
insolvent. What is the effect of insolvency of the new debtor to the obligation of
the old debtor?
- This is expromision. Under Article 1294. If the substitution is without
the knowledge or against the will of the debtor, the new debtor’s
insolvency or non-fulfillment of the obligation shall not give rise to
any liability on the part of the original debtor.