MLQU OBLICON FINALS EXAM

Pakilakip ang papel na ito na naglalaman ng mga katanungan sa buklet ng inyong mga
kasagutan. Piliin pinaka-akmang kasagutan sa bawat tanong at ipaliwanag kung bakit
iyon ang inyong napili.
1.
Immediately after his graduation from college in March, Joey announced his
plan to begin law school the following June and to marry Kris in December. Joeys
father, Philip was afraid that marriage during Joeys first year of law school might
cause him to fail or drop out of law school. He phoned Joey and said that if he
postponed his wedding plans until after the completion of his first year of law
school, Philip would give him a bonus of P.1M and would pay Joeys tuition for the
second year of law school. Joey agreed and phoned Kris to tell her that he wanted
to postpone the wedding, which angered Kris, driving her to a fit. So she broke off
their engagement. Two months later, Sue married James. Philip died soon after
Joey started law school but Joey successfully completed his first year. Although
he got high grades, he decided that he was not really interested enough in the law
to want to continue his legal education. After failing to register for a second year
of law school, he notified Philips administrator and told the administrator that
although there would no longer be any tuition expense, he expected to be paid the
P.1M cash bonus which his father had promised him. The administrator refused to
pay anything. If Joey sued the administrator of Philips estate for P.1M, Joey
would probably be:
a.
b.
c.
d.

unsuccessful, because his contract with Joey violated public policy;

unsuccessful, because Joey failed to register for a second year of law
school;
unsuccessful, because Joeys death terminated his offer;
successful.

2.
Corman owned a condominium which had an apartment with a patio and a
small backyard. When he moved in he entered into a written contract with
Lansman, where Lansman was to perform certain specified in the yard of Cormans
condominium each week for 1 year for which Corman was to pay the sum of P5,000
per month. The contract contained a clause which stated Corman hereby agrees
not to assign this contract without Lansmans written consent. 3 months into the
contract, Corman informed Lansman that he was selling the condominium to Antun
and asked Lansman to agree to Cormans assignment of the contract to Antun.
Because the cost of landscaping materials had increased dramatically in the last 3
months, Lansman was glad for an opportunity to be relieved of his obligations under
the contract and refused to consent to the assignment. Corman assigned the
contract to Antun anyway, but Lansman refused to perform any further work on
the yard. After formally demanding performance from Lansman, Antun hired
another gardener to do the same work for P7,500 a month which was the best
price Antun could negotiate. If Antun sues Lansman for breach of contract, the
court should find for

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a.
b.
c.
d.

Antun, because Lansman had no right to unreasonably withhold consent

to the assignment;
Antun, because the assignment was valid in spite of Lansmans refusal
to consent;
Lansman, because the contract prohibited assignment by Corman
without Lansmans consent;
Lansman, because the contract was for personal services.

3.
On June 1, after arson fires had damaged several city buildings, the City
Council of Metro voted to offer a reward to aid an apprehension of the arsonists.
On June 2, by order of the City Council, signs were posted in various locations
throughout the city. The posters identified the buildings which had been burned
and stated:P.1M reward is hereby offered by the City of Metro to any person
furnishing information leading to the conviction of persons responsible for setting
fire to said buildings. Curran, a police officer employed by the City of Metro saw
the posters in June 5 and resolved to make a special effort to catch the arsonists.
Although he was not officially assigned to the case, he notified his fellow police
officers and his usual underworld informants that he was especially interested in
the case. As a result, Marino, another police officer and Pidgeon, an informant,
passed information to Curran which they thought might relate to the arson crimes.
The tip which Curran got from Marino proved to be of no assistance, but that
which he got from Pidgeon led him to conduct further investigation. His efforts
eventually resulted in the arrest of two men who pleaded guilty to setting fires in
public buildings. Curran demanded that the City Council pay him the P.1M reward
but the council refused. If Curran sues the City of Metro to collect the P.1M
reward offered in the signs posted on June 2, which of the following would be the
Citys most effective argument in defense?
a.
b.
c.

d.

The reward should go to Pidgeon. It was his information which

eventually led to the arrest of the arsonists;
The reward was not accepted since the arsonists were not convicted
but pleaded guilty;
Curran gave no consideration for the Citys promise to pay a reward,
since he was already obligated to attempt the apprehension of the
arsonists;
There was no enforceable promise by the City, since the offer was for
a gratuitous cash award.

4.
X contracted to add a room to Homers house for P30,000 with the
understanding that the materials used by X were to be included in that price. The
day before the work was to begin, Homer wired X, The deal is off. Do not begin
work, Homer. X sued Homer for breach of contract. Homer raised noncompliance
with the Statute of Frauds (SOF) as a defense. Which of the following statements
is more correct about the application of the SOF to the contract between Homer
and X?

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I.

The contract was required to be in writing if the materials which

would have been required had a price in excess of P500.
The contract was required to be in writing of, at the time of
contracting, the parties intended that the materials required would
have a price in excess of P500.

II.

a.
b.
c.
d.

I only.
II only.
I and II.
Neither I nor II.

5.
On August 1, Wells, a wholesaler of office supplies, contracted by telephone
to sell 50 cases of printer ribbons to Ronson, a business equipment retailer at a
total price of P4500. On August 15, Wells phoned Ronson and told him that because
of a shortage of materials, the price Ronson had to pay for the ribbons increased
drastically. Wells said that if he delivered the ribbons at the agreed price, he
would lose a great deal of money. He asked Ronson to consent to a higher price,
suggesting that Ronson pass the increase along to his customers. After further
discussion, the parties agreed to change the price of the order to P6500. On
August 18, Ronson succeeded in buying 50 cases of printer ribbons from another
supplier for only P5000. On September 1, Wells delivered 50 cases of printer
ribbons to Ronson with a bill for P6500. Ronson rejected the delivery. Wells sued
Ronson for breach of contract. Which of the following would be Ronsons most
effective argument in defense?
a.
b.
c.
d.

Wells demand for more money was unconscionable since printer

ribbons were available at a lower price;
The Aug. 15 agreement increasing the price was not in writing;
Ronsons promise to pay P6500 was unsupported by consideration;
An increase in Wells cost resulting from a shortage of materials was
foreseeable on Aug. 1.

6.
On March 22, by a written memorandum signed by both parties, Varsey
agreed to sell and Pantel agreed to buy a described parcel of land. The contract
called for closing of title on May 30, and fixed all other terms, but did not indicate
the price to be paid. On May 30, Pantel tendered P.6M cash, but Varsey refused to
convey the land. Pantel later sued Varsey for specific performance of the contrat
and offered evidence that P.6M was the fair market value (FMV) of the land both
on March 22 and on May 30. In defense Varsey claimed that the memorandum
failed to satisfy the requirement of the SOF. Pantels suit against Varsey should
a.
b.
c.

succeed, if Pantel and Varsey are both in the business of buying and
selling real estate.
succeed, because under the law a contract which is silent as to price
of a parcel of land is presumed to call for payment of FMV.
fail, because the written contract did not fix the price of the land.

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d.

fail, unless the evidence establishes that the parties orally agreed
that the price was the FMV of the land.

7.
In preparation for the annual convention of the Association of Life
Insurance Agents which was to be held on Jan. 9, Committee ordered 500 ball
point pens at a total price of P2850, paying for them in advance, Because the pens
were to be given conventioneers as souvenirs, they were to be imprinted with the
name and slogan of the association and were to be delivered to Committee on or
before Jan. 8. Penco and Committee entered into a written contract containing the
above terms on Nov. 16. Penco tendered 475 ball point pens on Jan. 8. Which of the
following correctly states the legal relationship between Committee and Penco on
Jan. 8?
a.

b.
c.

d.

Committee must accept the tendered delivery of 475 ball point pens
but may successfully sue for damages resulting from breach of
contract.
Committee may elect to accept the tendered delivery of 475 ball point
pens but may successfully sue for breach of contract if it does so.
Committee may reject the tendered delivery of 475 ball point pens
and may successfully sue only for the return of its advance payment if
it does so.
Committee may reject the tendered delivery of 475 ball point pens
and may successfully sue for the return of its advance payment and
for damages resulting from breach of contract if it does so.

8.
Ace, a construction contractor, was planning to submit a bid for the
renovation of a city office building. Ace called Wire, a subcontractor who had done
electrical work for Ace in the past, and described the proposed project. Ace told
Wire about the electrical work that would be required and asked Wire to state the
price that he would charge to do the electrical work for Ace. Wire inspected the
office building on which work was to be performed and spent six hours estimating
the cost of the job. Wire mailed Ace a letter describing the work to be performed
and containing the following statement: I will do the work described for a total
price of P.16M. This price is not subject to change until one week after the city
awards the contract. Wire later purchased materials in anticipation of the job.
Ace submitted a bid for renovating the building and was awarded the contract. He
called Wire offering to pay P.12M for the electrical work. When Wire refused to
accept anything less than P.16M, Ace hired Lectric to do the work instead of Wire.
If Wire sues Ace for the cost of materials which Wire bought in anticipation of
the job, the court should find for
a.
b.
c.

Wire, if Ace relied on Wires offer in bidding on the job.

Wire, if the materials which wire purchased will not otherwise be used
in the ordinary course of his business.
Wire, if he bought the materials in reliance of the belief that Ace
would hire him upon receiving the contract from the city.

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d.

Ace, because he had no agreement with Wire concerning the electrical

work.

9.
S and B entered into a written contract for the sale of 500 bicycles at a
total price of P.5M. The contract required delivery by S prior to June 1 and
payment by B within 30 days after delivery. On May 15, S delivered the bikes to B,
who received and accepted them. On May 21, S was having cash-flow problems. He
phoned B asking whether B could pay for the bikes immediately, B said he would pay
by May 25 if S was willing to accept P.45M in cash as payment in full. S agreed. But
by June 20, B had made no payment at all. S sued B for P.5M. B admitted the
existence of the contract, the delivery of the bikes and his non-payment. But he
claimed that he was liable only for P.45M because of the agreement he made with
S on May 21. Is Bs claim correct?
a.
b.
c.
d.

No, because B did not pay P.45M by May 25.

No, because a promise to perform a pre-existing obligation is not
valuable consideration.
Yes, because there has been valid novation.
Yes, because there has been a valid agreement of accord.

10.
In response to an ad he saw in a newspaper, Hunter phoned Screner and
asked him to come to Hunters home to estimate the cost of providing and installing
new aluminum screens for all of Hunters windows. After taking measurements,
Screner returned to his shop and prepared a written estimate, in which he said
that he would do the entire job for P3500. When Hunter received Screners
estimate, he wrote across it with a red felt-tipped pen, Ill pay P3000 but not a
centavo more, and mailed it to Screner. When Screner received the estimate with
Hunters statement written on it, he wrote Ill do it for P3250. He sent the
estimate back to Hunter on Sept. 5, but on Sept. 12, having received no response,
he sent Hunter another note. The note said, All right, you win. Ill do the job for
P3000. Unless I hear from you to the contrary, Ill be there with the new screens
on Sept. 28. Signed. Screner. Hunter received the note on Sept. 14, but mad no
response. On Sept. 28, without Hunters knowledge and while Hunter was at work,
Screner went to Hunters house and installed the new screens. Which of the
following best characterizes the legal relationship between Hunter and Screner
after the installation of the window screens on Sept. 28?
a.
b.
c.

A contract was formed when Hunter failed to respond to Screners

letter of Sept. 12 within a reasonable time after he received it.
A contract was formed when Screner began to install the screens on
Sept. 28.
A quasi contract was formed when Screner finished installing the
screens on Sept. 28, obligating Hunter to pay a price equivalent to
their reasonable value.

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d.

No contractual relationship existed between Hunter and Screner.