Problem 2: Is S guilty of legal delay?

Problem 3: Suzie and the colt

Problem 4: Is D liable to pay interest?
20.00 Php
Wednesday, October 21, 2014
Chapter II
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?
Problem 1: Who has a better right to Silver?
Problem 5: Can R still collect rents?
NATURE AND EFFECT OF OBLIGATIONS
Art. 1164
The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises.
However, he shall acquire no real right over it until the same has been delivered to him. (1095)
T has the better right to
Silver than B.
S sold to B a specific refrigerator which S agreed to deliver not later than July 31, S did not
deliver the refrigerator on said date. Is S guilty of legal delay?
Art. 1169
Those obliged to deliver or to do something incur in delay from the time the obligee judicially or
extrajudicially demands from them the fulfillment of their obligation.
S is guilty of legal delay, effected by mora solvendi
Mora solvendi - delay on the part of the debtor to fulfill his obligation
The obligations of S are the following:
i. Preserve the thing
ii. Deliver the fruits of the thing
iii. Deliver the accessions and the accessories
iv. Deliver the thing itself
v. Answer for damages in case of non-fulfilment or breach
S has the right to
the colt
T is the lawful owner
of Suzie
Art. 1163
Every person obliged to give something is also obliged to take care of it with the proper diligence
of a good father of a family, unless the law or the stipulation of the parties requires another
standard of care. (1094a)
Art. 1164
The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises.
However, he shall acquire no real right over it until the same has been delivered to him. (1095)
S promised to deliver to B a female horse named Suzie on July 10. Suzie gave birth to a colt on
July 5.

D (debtor) borrowed 20,000 Php from C (creditor) payable after one (1) year? Is D liable to pay
interest?
Art. 1175
Usurious transactions shall be governed
by special laws. (n)
D is liable to pay interest to C if: (1) they have expressly stipulated that a certain amount of
interest may be recovered by C, and (2) there is a written agreement between D and C about the
interest. The payment of the interest is invalid if there is no agreement on the interest per se.
R (lessor) issued a receipt that E (lessee) has paid the rent for the month of March 2008. Can R
still collect from E the rents for January and February 2008?
Art. 1176
The receipt of the principal by the creditor without reservation with respect to the interest, shall
give rise to the presumption that said interest has been paid.
Yes, R can still collect the
rents for January and February 2008 from E.

.
. The Law on Obligations and Contracts 2011 Midterm
Examination Submitted by: Domingo, Dennimar O. TTh 17:00 18:30 Submitted to: Pio Sara Jagurin
2.II. Discussions 1. Illustrate an obligation subject to: (a)
Suspensive Condition When an obligation is subject to a
suspensive condition, the creation of the obligation will
depend on the occurrence of an event or on the certainty that
the event will not occur; thus, the condition delays the creation
of a relationship between the parties. As long as the condition
has not occurred, the very existence of the obligation is not
yet arises. For example, If your rent is due on the 30th, you
have an obligation to pay the rent. The performance to pay
occurs on the 30th. The performance is suspended until the
30th. (b) Resolutory Condition Resolutory condition refers to a
condition whereby, upon fulfillment terminates an already
enforceable obligation. The continuance of such a contract is
made dependent upon the happening of an uncertain future
event. However, there is no postponement or suspension of the
contract and all rights and obligations come into existence
immediately upon conclusion of an agreement between the
parties. For instance, You have a car note over the next 10
years. Once you pay the last payment at the end of 10 years,
the obligation ends. What is the effect of the fulfillment of the
condition in a conditional obligation? The suspensive condition
is when the parties agree that the duty to perform is
postponed until a determined or determinable date due to the
pending event, and that this event is certain to happen.
However, the exact date is unknown. The obligation will arises
when the said condition is already fulfilled. While in the
resolutory condition, when the parties agree that the

obligations in the contract will be terminated upon a certain

future time. This exact time is certain to happen, but the exact
date is unkown.
3.2. Give two (2) cases when the conditional obligation is valid
although the condition depends entirely upon the will of the
debtor. Explain. First case is when the debtor promises to pay
when his means permit him to do so. In this case, what
depends upon the will of the debtor is the duration of the
period when he is capable on paying his debt and not whether
he should comply or not. For example, Mr. G binds himself to
pay Ms. Y of his debt that costs 10,000 little by little. This
obligation is valid and it shall be deemed to be one with a
period of time. Next case is when the debtor is capable of
doing the said obligation. For example, Marie borrowed 5,000
to Rose payable on September 13. Due to the review of
financial reverses, Marie now is not capable on paying the debt
to Rose but Marie is willing to pay the said debt. The remedies
of Rose will arise 3. May an obligor be liable under an
obligation subject to a suspensive condition although the
condition has not yet been fulfilled? Explain. Under the
suspensive condition, the obligation will arises when the said
condition is already fulfilled. Therefore, under this type of
condition, the obligor or the debtor is not yet liable. The
debtor would be liable if the condition is already fulfilled. 4. In
obligation to give a parcel of land subject to a suspensive
condition, who is entitled to the fruits that accrued during the
pendency of the condition once said condition is fulfilled? Upon
the fulfillment of the obligation, the seller has the right to
keep to himself all the fruits and interests he may have
received during the pendency of the condition, unless a
contrary intention by the seller that he shall render an
accounting of fruits received during its pendency.
4.5. State the rules in case the thing to be delivered: (a) is
lost with the debtors fault; without his fault; If the delivery
lost is due to the debtors fault, the debtor has an obligation
to pay the damages that incurred and the price of the thing
that is lost also can be demand. If the delivery lost without the
fault of the debtor, the debtor is not liable for any obligation or
the obligation shall be extinguished. We are not liable for the
fortuitous event or any event that beyond our powers. (b)
Deteriorates with the debtors fault; without his fault If it
deteriorates through the fault of the debtor, the creditor may
choose between the 2 remedies as a creditor, which is the
rescission or the fulfillment of the obligation, with damages
that incurred in either case. As a creditor, you only have to
choose one of the remedies that are given. If it deteriorates

without the fault of the debtor, the value of thing that

delivered will be depreciated and the value will be reduced due
to the deterioration of the thing.
5.III. Problems Explain or state briefly the rule or reason for
your answer. 1. D (debtor) borrowed 20,000 from C (creditor)
payable on or before August 30. Before the arrival of the due
date, C agreed to the promise of B to pay C if B wants. Can C
insist that B pay not later than August 30? On this situation,
the conditional obligation whose fulfillment depends partly on
the will of the debtor and partly upon the will of the third
person is perfectly valid. In this case, it shows that the creditor
demands the third person to pay him not later than August 30
but on the said case, they agreed on the promise of the third
person to pay the creditor if the third person wants. Therefore,
the creditor cannot demand to the debtor if the due date is not
yet passed. 2. Suppose in the same problem, D obliges himself
to pay C 10,000 after C has paid his obligation to T. Is the
obligation valid? The said condition is considered as the
suspensive condition wherein the obligation will only arises if
the condition is already fulfilled. The debtor obliges himself to
pay the creditor if the creditor already paid the third party. If
the creditor has not yet fulfilled his obligation to the third
party, he cannot demand the debtor to pay him immediately.
Therefore, the obligation of the debtor is invalid. The debtor is
not liable to pay the creditor if the creditor is not yet paid to
the third party. 3. S (Seller) agreed to sell to B (buyer) a
specific car for 200,000, delivery of the car and the payment of
the price to be made on June 15. Suppose S delivered the car
on June 15 but B failed to pay the price, what are the remedies
of S? If the buyer does not comply with his obligation to pay,
the seller may choose between the two remedies: (a) action for
specific performance (fulfillment) of the obligation with the
damages; or (b) action for the rescission of the obligation also
with damages. The seller has the privilege to choose only one
of the remedies, and not both. If the creditor chosen
rescission, he cannot demand the fulfillment of obligation to
the buyer. Same as, if he chosen the buyer to fulfill the
obligation, he cannot practice the rescission later on.
6.4. S sold a parcel of the land to B for 240,000 payable in
installment of 20,000 a year. The land was delivered to B who
obtained ownership thereof. After B had paid 200,000, he
could no longer continuing paying in view of financial reverses
but he was willing to pay the balance of 40,000 if given more
time. Thereupon, S sued for rescission under Article 1191. If
you were the judge, would you grant rescission? If I were the
judge, I would grant the rescission of Seller in default a term

or period for the performance of the Buyer. The buyer is willing

to comply with his obligation to pay the maintaining balance
that cost 40,000 but needs time to do so due to the view of his
financial reverses, not because he doesnt want to pay the
maintaining balance that hed left. 5. D (debtor) binds himself
to pay C (creditor) a sum of money. Give the three (3) cases
when the obligation of D is demandable at once by C? When
the obligation is pure An obligation is demandable at once if
it is pure obligation which one is not suspended by any
condition, whether it has been contracted without any
condition, or when thus contracted, the condition has been
performed. It is immediately demandable. Their agreement
doesnt have specific date, and conditions so the creditor can
demand to pay the said amount to the debtor. When the
obligation is subject to a resolutory condition On the above
description of resolutory obligation, once the condition is
already fulfilled, the obligation will be extinguish. The creditor
can demand to the debtor during the fulfilling of the condition.
When the obligation is subject to a resolutory period Same
as the case above, the creditor can demand to the buyer while
in the process of fulfilling the condition. If the creditor and the
debtor agree on the period wherein the obligation is
extinguished, he can demand to the buyer to pay the amount
he borrowed.