1. Mr. A made a promissory note to Mr. C. I promise to pay Mr.

C P1,000 on Sept
30, 2016.
a. Who is the active subject?
1. Conclusion: The active subject is Mr. C.
2. Reason: The law on obligations state that the active subject is the person
who is entitled to demand the fulfillment of the obligation.
3. Application: Here, Mr. C has the right to demand that Mr. A fulfill his
obligation to pay him P1,000 on Sept 30.
4. Conclusion: Thus, the active subject is Mr. C.
2. Suppose on Sept 30, 2016, Mr. A did not pay P1,000 but instead gave Mr. C a
Rolex watch worth P100,000. Can Mr. C refuse to accept the watch and compel
Mr. A to pay him the P1,000?
a. Y, obligations arising from contracts have the force of law between the
parties and must be complied with in good faith.
3. Mr. A left his pregnant wife Mrs. B under the care of Mr. As parents while he is
abroad. During childbirth, Mrs. B incurred expenses amounting to P100,000
which was paid by Mr. As parents. When Mr. A returned from abroad, his parents
asked for reimbursement but Mr. A refused to pay saying that he did not consent
to the P100,000 hospitalization expenses. Is Mr. A correct?
a. No, principle of negotiorum gestio (voluntary management of affairs of
another even without consent) Or quasi-contract(no one shall be unjustly
enriched at the expense of another)
4. Mr. A was crossing the street when the traffic light signaled go. He was hit by a
car driven by Mr. C who is drunk. Can Mr. C refuse to pay for Mr. As injuries?
No, principle of quasi-delict, person is liable for his acts or omissions caused by
his fault/negligence, there being no pre-existing contractual relations between
the parties.

5. A promised B that she will give B a dress that she wore to the Oscars. When A
was about to deliver the dress, she noticed a stain on it. Luckily, she saw on the
mall, the same dress. She bought the dress and gave the new one to B. Can B
refuse to accept the new dress? Y, obligation to deliver a specific thing. Cannot
substitute it even if it is of same kind and quantity.

6. X obliged himself to give Y a bottle of expensive wine. He carefully wrapped the

wine in a Styrofoam container and put it in a sealed box. However, when Y received
the package, the bottle was already broken. Is liable for the damage? N, take good
care of it with diligence of a gff.

7.On Sept 15, A promised B that he will give a dog to B on Sept 30. On Sept 29, the
dog gave birth to a puppy. Can B claim the puppy as his own? N, Cr has right to the
fruits from the time the obligation to deliver arises.

8. A promised to give Y his parcel of land on Sept. 30, 2016. On Sept 30, 2016, A
executed a Deed of Donation and transferred the ownership of the land to Y.
 (i) Suppose the land has coconut trees, who has the right to harvest the
coconuts? Y. Cr has right to fruits from the time the obligation to deliver arises.

(ii) Suppose on Sept 29, 2016, A sold the coconuts to X. Does Y have the right
to harvest the coconuts? No, Cr has no real right as to the fruits until the same has
been delivered to him.

9. A and B executed a contract wherein A agreed to sell to B 100 sacks of rice at a

price of P1,000 per sack on September 30, 2016. On September 30, 2016, A only
delivered 25 sacks of rice thus, B was forced to buy 75 sacks of rice from C at a
price of P1,500 per sack.

(1)Can B compel A to pay him the difference of P500 per sack of rice? Y,
1165. If the thing is generic, he may ask that the obligation may be complied at the
expense of Dr.

(2)Suppose A agreed to pay B the difference of P500. Can B still claim for
damages? Y, Article 1170. Those who in the performance of their obligations are
guilty of fraud, negligence, or delay, and those who in any manner contravene the
tenor thereof, are liable for damages.

10. X is a lessee of a house owned by Y with a monthly rental of P5,000 per month.
Their contract did not state when the rentals should be paid. X was not able to pay
for the month of September. Is X in delay? N, Article 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.

11. A ordered lechon from B to be served to his guests for the City fiesta. However,
B delivered the lechon on September 30. A refused to pay for the lechon stating the
B is in default. B argued that since A did not demand for the delivery of his lechon,
he is not in default. Is B correct?

12. X borrowed P100,000 from Y9191. However, X was not able to pay Y on the date
due. On Ys investigation, it was found out that (1) X owns jewelry worth P50,000,(2)
A owes X P30,000 and (3) X, in good faith, sold a parcel of land to C worth P20,000.
What should X do to enforce his claim?

(1) levy or attachment pursue the property in possession of the debtor

(2) accion subrogatoria exercise all rights and bring all actions of the latter

(3) accion pauliana impugn all acts which the debtor might have done to defraud
them

13. A was riding a passenger jeepney. As he was about to step off the jeep, the
driver suddenly accelerated causing him to fall and break his arm. Can A sue the
owner of the jeepney? Y, culpa contractual
14. Mr. X told A to clean some dangerous machineries. A protested saying that he is
unskilled and he had no experience in cleaning the machine. While cleaning, As
fingers got stuck in the machine and was severed. Is Mr. X liable for As damages? Y,
responsibility arising from negligence is also demandable. Omission of diligence
which corresponds with the circumstances of time, person and place.

15. X obliged himself to deliver to Y his carabao named Karl. Before delivery was
made, robbers attacked Xs house and killed Karl the carabao. May Y compel X to
make the deliver? No, fortuitious event

16. A entered into a contract with B, wherein A agreed to carry aboard his ship Bs
jewelries worth P10 million. Since A was honored to be chosen by B as a carrier, he
put a tarpaulin on his ship advertising the contract. That night, robbers entered the
ship and stole the jewelry. Is A liable? Y, negligence

17. A obliged himself to deliver 1,000 barrels of gasoline to B. On the night before
the delivery, the building, along with the gasoline was burned down. Can A refuse to
deliver the gasoline due to fortuitous events? No, generic.

18. X promises to deliver to Y a horse named Starla. Their contract contains a penal
clause that in case of non-fulfillment, X shall pay a penalty of P10,000. May X
compel Y to accept the payment of penalty instead of delivering the horse? No.

19. D borrowed from C an amount of P10,00 with 10% interest per annum payable
on December 31, 2016. Can D require C to accept payment before December 31?
No. period benefit of both dr and cr

20. S sold to B a specific refrigerator to be delivered on July 31. S did not deliver on
the said date. Is S guilty of delay? No. no demand no delay.

21. S sold his TV set to B who gave S the option to deliver instead his refrigerator. Is
S liable to B in case the TV is lost through Ss fault?

22. A promised to give his car to B if B graduates on June 2017. Before B

graduated, the car was destroyed through As negligence. What is Bs remedy?
Damages. 1189

23. Suppose it was discovered that the car was previously owned by Michael
Jackson, who benefits from the increased market value? A. 1189.

24. A promised B that on his graduation he will give B his car or his house. Before B
graduated, he borrowed As car and wrecked it. Q: who has the right to choose? A,
Dr. Art 1200.

25. Remedies of A? Rescind with damages or car + damages. Art 1203.

26. Q: A promised B that he will give him a ring or a necklace or a bracelet. A, by his
own negligence, lost the ring and necklace. Can B sue for damages? N, A has the
right of choice as a debtor.

27. Suppose the jewelries are all lost due to a typhoon. Can B sue for damages?
None, fortuitous event. Obligation is extinguished.

28. Suppose A, by his own negligence lost all 3 objects. Can B sue for damages? Y,
at the amount of last thing which disappeared.

29. A,B,C are co-owners of a house which they agreed to sell to X for 1.5 M. C
changed his mind at the last minute. Remedy? Art 1224.

- Converted to damages
- A and B is only liable up to 500K each (corresponding portion of the price of
the thing or of the value of the service in which the obligation consists)
- C may be liable for more than 500K

30. AB (sd) owed XY (sd) P8,000. Later, A and X agreed that instead of paying P8k,
A will paint Xs house.
Effects:
1. Obligation to pay 8K is extinguished.
2. Is B bound to comply? No. act is prejudicial.
3. Remedy of Y: reimbursement from X for 4k.
LAW ON OBLIGATIONS AND CONTRACTS

INSTRUCTIONS

1. Answer the questions legibly, clearly, and concisely. Start each number on a separate page.

2. A mere "Yes" or "No" answer without any corresponding explanation or discussion will not be
given any credit. Thus, always briefly but fully explain your answers

3. You do not need to re-write or repeat the question in your Notebook.

1. X promises to deliver to Y a horse named Starla. Their contract contains a penal

clause that in case of non-fulfillment, X shall pay a penalty of P10,000. May X
compel Y to accept the payment of penalty instead of delivering the horse? (5 pts)

2. D borrowed from C an amount of P10,00 with 10% interest per annum payable on
December 31, 2016. Can D require C to accept payment before December 31? (5
pts)

3. S sold to B a specific refrigerator to be delivered on July 31. S did not deliver on

the said date. Is S guilty of delay? (5 pts)

4. X obliged himself to deliver to Y his carabao named Karl. Before delivery was
made, robbers attacked Xs house and killed Karl the carabao. May Y compel X to
make the delivery? (5 pts)

5. X borrowed P100,000 from Y P100,000. However, X was not able to pay Y on the
date due. On Ys investigation, it was found out that (1) X owns jewelry worth
P50,000,(2) A owes X P30,000 and (3) X, in good faith, sold a parcel of land to C
worth P20,000. What should X do to enforce his claim? (10 pts)

6. A promised B that she will give B a dress that she wore to the Oscars. When A
was about to deliver the dress, she noticed a stain on it. Luckily, she saw on the
mall, the same dress. She bought the dress and gave the new one to B. Can B
refuse to accept the new dress? (5 pts)

7. S sold his TV set to B who gave S the option to deliver instead his refrigerator. Is
S liable to B in case the TV is lost through Ss fault? (5 pts)

8. Bonus Q: What are your thoughts regarding extrajudicial killings? Is it the best
way to reduce criminality in the Philippines? Limit your answer in 1 paragraph only.