1. Q: X and Y agreed that Y would build a fence around X’s house for P2,000.

One day, Y had a quarrel with X’s wife. X later filed a case against Y,
whereby Y was imprisoned and was unable to finish the fence on account
of the action taken by X. However, Y demands payment of the whole
amount. Decide.

A: Y cannot demand the whole amount as payment for the work done by
him. There is no constructive fulfillment of the condition. The act of debtor
X, although voluntary, did not have for its purpose the prevention of the
fulfillment of the condition. The debtor acted pursuant to a right to sue,
hence the condition was not deemed fulfilled. Y can only demand
payment only up to the extent if the work done.

2. Q: On 1 Jan 1980, X promised to give a specific car to Y. On 5 May 1980, X

promised to give the same car to Z. On 20 May 1980, the car was lost
without the fault of X. What is the effect of the loss of the car upon the
obligation of X to Y and to Z? Reasons.

A: X’s obligation is to indemnify Y and Z for damages caused. The law

provides that if the obligor delays or has promised to deliver the named
thing to two persons of same interest, he shall be liable for any fortuitous
event until he has effected the delivery. (1165)

3. Q: A borrowed P2,000 from B on 1 Jan 1983. He executed a promissory note

promising to pay the indebtedness on 1 Jan 1984. Upon the arrival of the
designated date for payment, A did not pay. What is the liability of A?
Reason.

A: There is no liability unless there is demand. A cannot be legally

considered in default for non-payment since B did not make a demand,
either judicially or extrajudicially, he cannot put debtor A in default.
General rule is: No demand, no delay. Exception to this general rule is
found in CC 1169.

4. Q: CC 1171 referring to fraud as a cause of non-fulfillment of an obligation

provides that the responsibility arising from fraud is demandable in all
obligations and that any waiver of an action for future fraud is void. Does
this mean that the creditor who has suffered damages by reason of the
fraud cannot later legally waive this action for damages? Reason.

A: No. What the law prohibits is a renunciation made in advance of future

fraud. To permit such renunciation would practically leave the obligation
without effect, but the law does not prohibit the renunciation of the action
or damages on the ground of fraud already committed. It is against public
policy.

5. Q: What is fortuitous event? Is a stipulation to answer in case of fortuitous

event lawful? Explain.

A: New Civil Code defines a fortuitous event as an event which could not be
 foreseen, or which, though foreseen is inevitable. The general rule is that
no person shall be liable for a fortuitous event. Exceptions are in cases
expressly specified by the law, or when it is otherwise declared by
stipulation, or when the nature of the obligation requires the assumption
of risk. (CC 1174)

6. Q: What is the remedy of the debtor who pays his debt before the fulfillment
of the suspensive condition imposed in the obligation? Under what
condition may said remedy be availed of? Reasons.

A: If the debtor pays his debt before the fulfillment of the suspensive
condition, the law grants him the right to recover what he has paid
provided the following requirements are present: (1) that the obligation is
not yet due because the suspensive condition has not yet been fulfilled (2)
that the debtor paid by mistake. However, if the debtor paid not by
mistake and the condition is fulfilled, there is no recovery. This may result
to unjust enrichment or solution indebiti unless it is a pure condition.

7. Q: A promised to pay B as soon as he receives funds from his coconut

plantation in Mindanao. Is the condition valid?

A: Yes. The condition is valid. The condition is a mixed condition because its
fulfillment depends not only upon the will of the debtor but also upon
chance or occurrence of other factors such as acceptability of the price
and other conditions of the sale and the presence of a buyer who is willing
and able to purchase the property.

8. Q: Explain briefly the meaning of constructive fulfillment of a condition. Give

the requisites.

A: Constructive fulfillment of a condition means that when the obligor

voluntarily prevents the fulfillment of the condition, it shall be deemed or
presumed fulfilled although there is no actual fulfillment. There will be
constructive fulfillment when 2 requisites occur: (1) intent on the part of
the obligor to prevent the fulfillment of the condition and (2) actual
prevention. (1186)

9. Q: In reciprocal obligations, when does one of the parties incur delay?

Reasons.

A: One of the parties incurs delay from the moment one of them fulfills or
tenders fulfillment of the obligation in a proper manner.

10 Q: What is tacit resolutory condition, in reciprocal obligation?

.
A: Since in reciprocal obligation the obligation of one party is correlative to
the obligation of the other, the law has established the principle that if
one of the parties fails to comply with what is incumbent upon him, there
is right or power on the part of the other to resolve the obligation. Since it
has the effect of extinguishing rights which are already acquired or
 vested, it is resolutory in character. It is a condition imposed exclusively
by law, even if there is no corresponding agreement between the parties.

11 Q: A conflict between X and Y provides that the former shall give Y a car on
. Jan. 1, 1980 and in case of failure to do so, he shall pay a penalty of
P10,000. Should the contract allow X to pay due penalty instead of giving
the car, what is the nature of the Obligation? Is it one with a penal clause,
alternative or the facultative? Reason.

A: As a rule, the debtor cannot exempt himself from the performance of the
obligation by paying the penalty, save in cases where the right has been
expressly reserved for him. The reason for the rule is that damages are
not a substitute performance. Since in this particular case, the contract
allows X to pay the penalty instead of performance of the obligation to
deliver a car, then it falls within the exemption. Consequently, the
obligation with a penal clause ceases to be one and is either converted it
into an alternative or a facultative obligation, depending on the terms of
the reservation or the tenor of the obligation.

12 Q: In a contract of sale dated Jan. 1, 1980, X convoyed a parcel of land to Y

. at a very low price promised the latter to build a house thereon within one
year from the date of purchase and that Y resides therein for a period of
not less than 5 years likewise from date of purchase. On Nov. 10, 1983,
____ which Y sold the house and lot to O as Y was assigned by his
employer n Mindanao. After learning of the sale to O, X brings an action
against O for the recovery of the house and lot. If you were the judge, how
will you decide the case? Reason.

A: In reciprocal obligation, the corresponding duties are the following: In a

contract of sale, the seller delivers the thing and the buyer shall pay the
price in as much as the two duties are complied with, either party can
resolve the contract. The conditional imposed were only incidental.

13 Q: A lease contract for 10 years at P200/month was complied for 4 years

. after which lessee did not pay rent. The lessor asked the lessee to vacate
the premises if he could not afford to ppay. The lesse then ____ over for
_______ to the lessor. Now the lessor demands rent for the remaining 6
yeears. Decide with Reason.

A: The leasor cannot demand the rent for the remaining 6 years since he
decided _____ the lessee ____.He is now entitled to possession but not to
___ rents for the unexpired term. The law provides that the injured party
may choose between the fulfillment and those ____________ of the
obligation with the payment of damages on either one.

Hence, he cannot have both remedies of recission and specific

performance of the same time because of the incompatible nature of such
remedies. Perhaps, the lessor can recover damages because he
successfully _____ the ____. The fact that THE LEASSEE VACATED THE
PREMISES. If the lessor demands fulfillment of the obligation but such
 compliance is impossible, he is allowed by law to _____.

14 Q: A contract for the construction of a residential house was entered into

. between A and B. The contract provided has the construction fee and
specification of the interims to be used in the construction but did not
specify when the house was to be completed. After the lapse of 1 year
without the house being finished notwithstanding repeated demands
made by the latter brought an action for the setting of the period for the
completion of the house. In deciding the case, the court was decided
within when ______ will the construction. B wishies to contest the period
fixed by the court. May he legally do so?

A: Yes, B may legally contest the period fixed by the court. The law does not
prohibit the parties to change the period fixed by the court .What is
prohibited by law is the changing of such period by the courts without the
consent of the parties.

15 Q: If the happening of a future event is fixed by the parties for the fulfillment
. of an obligation. What is the ____ of the obligation? Reason.

A: Qualify the answer. If the event will necessarily come although the date
on time when it will come may be uncertain, the event constitute a day
certain. Hence, the obligation is one with a term.(Art. 1191). However, if
the _____ consists in whether the day will come or not, the event
constitute a condition. Hence, the obligation is conditional (Art. 1193)

16 Q: X succeeded in having annulled the contract between X and Y. The object

. of the contract was that a horse died while in Y’s [possession. What is the
liability of Y? Reason.

A: Y is obliged to pay and deliver to X the value of the horse which died while
in Y’s possession with _____ (compensatory) as an indemnity for the
detriment caused to Y, its owner. For the law provides that whenever the
person obliged by the degree of annulment to return the thing cannot do
so because it has been lost while in his possession. It shall be presumed
that the loss was due to his fault.

He should return the ____ received and the value of the thing in the value
of the loss with interest from the same date. However, ___ rule is not
absolute. If there is a proof to the contrary, the presumption of law will not
apply. Hence, if it can be proved by that the horse died due to fortuitous
event and without his fault, then Y is obliged to pay and deliver the value
of the horse at the time of loss, without interest _______ due to a fortuitous
event.

17 Q: X leased his house to Y for a period of 3 years from and after Jan. 1, 1980.
. The contract expressly provided that should any fortuitous event during
the life of the _____________________________________________________, the
house under lease, this necessitating major repairs therein should the
repairs last for 6 months. When will the contract expire? Why?
 A: The contract will expire 3 years from ___ after Jan. 1, 1980/ The stipulation
that in the event of a fortuitous event the contract shall be ____________
during ____ period, does not mean that the happening of any of those
events stops the ____ of the ___ that the contract had been agreed upon to
run. It only ____ the parties from the fulfillment of their respective
obligation during that time. Hence ___ contract will expire on ___ date
without extension of the term of the contract.

18 Q: When does the law prescribe a period to be for the benefit of the creditor
. or debtor? Reason.

A: When the period is designated for the performance of the obligation, it is

presumed to be for the benefit of ____ creditor and ____. The law ____ the
period to be for the benefit of either the creditor or debtor. However, the
rule is not absolute. If it can be proved either from the tenor of the
obligation or from the circumstances that the period has been established
for the benefit of either the creditor or debtor the general rules does not
apply (Art. 1196)

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