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Manuel entered into a verbal agreement with Wilson for the supply of gravel, sand, and
boulders for the Kaliwa Dam Project. He only has one proof of their business transaction
which is the check issued to him by Wilson and delivered to his office by Wilson’s workers on
different occasions. At the behest of Wilson, Manuel deposited the checks to his bank
account. However, the checks were dishonoured. Admittedly, there was consent from the
parties.
a. Did a contract exist between Manuel and Wilson? Explain.
b. Wilson claims that the checks were lost by him. Will your answer change in item (a)
change? Explain.
3. PGAI argues that no insurance contract took effect in view of GSIS’ failure to pay subsequent
installment payments. Is PGAI correct? Explain your answer briefly.