1. KC ordered 100 balloons from Piolo to be used for her son’s b`irthday party on February 14, 2012.

Due to the volume

of orders he received, Piolo was only able to deliver the balloons on the next day, February 15, 2012. KC refused to
accept the delivery and pay for the balloons because it was delivered late. Piolo claims that, legally, he is not in delay
since there was no demand from KC. Hence, KC must accept the delivery and pay for the balloons. He further contends
that a delay by only one day is not a substantial breach sufficient to justify KC’s refusal to accept the delivery and pay.
Who has the better right? Decide and explain fully.

2. Pilar bought ten dozens of ladies’ underwear from Pepe at Php 1,000 per dozen. On the way to pIlar’s house, Pepe’s
delivery truck was hijacked by five unidentified armed men who took all the ten dozen of underwear. Pilar called up
Pepe to inquire about the deliveries as she needs to display them in her store. Pepe told Pilar what happened. He
apologized for the unfortunate incident and told Pilar that the hijacking was a fortuitous event which extinguished his
obligation to deliver the underwear. Pilar threatened to sue Pepe for the delivery of the underwear. Who has the better
right? Decide and explain fully.

3. Anabelle was a young, upcoming actress with superb singing and dancing skills to boot. Soon, major entertainment
outfits and managers took notice and offered their services. Anabelle narrowed her choices to Beyond Concerts, Inc
(BCI) and Boy Malicsi as her potential talent managers. Thought both offered similar payment schemes, BCI called
Anabelle and offered promotion efforts abroad, to which Anabelle was thrilled; she practically gave her approval that
moment, and BCI set the formal contract of signing that following Friday.Boy knew of the offer and tried to convince
Anabelle he can offer the same service, but Anabelle had made up her mind. With one day to go before contract signing,
Boy filed an action in court to stop Anabelle and BCI from their contract signing. Will he succeed? Cite the legal basis
for your answer.

4. Placido agreed to lease his house for P10,000.00 a month to Luciano until Placido demands for it. Luciano agreed,
but deep inside he was very upset because to his mind the obligation is so one-sided. In truth, Luciano considered the
agreement void because the fulfillment of the condition solely depends upon the debtor’s will. So to get even, Luciano
does something to put Placido in deep sleep so he can make a demand forever. Until when is the lease of the house?

5. Barak and Michelle borrowed P1,000,000.00 jointly and/or severally from Bill and Hillary, with the former’s beach
house as security. Before due date, the house was hit by lightning, which caused deterioration to the garage of the
house. As a result, Bill and Hillary demanded the full amount with damages on the ground that Barak and Michelle had
lost the right to enjoy the period since the security used has deteriorated. The only way, Bill and Hillary asserted, that
Barak and Michelle can continue to enjoy the period is for them to provide new guaranty or security as required by Art.
1198 of the Civil Code. Do you agree with Bill and Hilarry?

6. Last 8 December 2011, Ateneo JGSOM college buddies Rudy, Jet and Jojo simultaneously opened three milk tea
booths at the Ground Floors of Trinoma, Shangri-La Mall, and SM Megamall. A year before the opening, the friends
individually contributed the initial amount of Php600,000.00 each for the business venture. At the start of the venture,
they also agreed in writing to be “jointly and severally” liable for expenses of the business. After rigorous product
development, Rudy, Jet and Jojo finalized their milk tea recipes and fruit fusion flavors on 5 February 2011. By 14
February 2011, they hired vivacious Anna Curtis, a brilliant British-trained industrial design consultant, to help them
design, brand and package their product line. Anna immediately started designing when she received the 50%
downpayment of her fee. In a meeting on 2 May 2011, friends chose Anna’s “Goat Tea” concept because they will only
use organic fresh goat’s milk to be sourced from the only HACCP-certified dairy farm-farmers’ cooperative in Lipa,
Batangas. Anna’s total design concept followed Steve Job’s hero’s (Leonard da Vinci) motto: “Simplicity is the ultimate
sophistcation.” The employees’ uniform was black turtleneck and jeans. After two weeks of operations in the 2011
Christmas season, the booths enjoyed robust sales. On 31 July 2011, Anna decided to demand payment of the amount
pf Php250,000.00 (or 50% balance of her consultancy fee). Can Anna demand full payment of the P250,000.00 from
Jet? What is your legal basis? Explain briefly.

. ... Assuming on 15 August 2012, an organic vitamin supplement – that had toxic mold clusters because it was not
properly stored in an airtight container in the farm’s stock room – was combined by a cooperative employee with the
animal feed allocation for the day. By 16 August 2011, all the goats became too ill to produce any edible milk. Thus, the
farm could no longer make deliveries. If Rudy, Jet and Jojo want to file a court case against the dairy farm, which
appropriate remedy under Article 1191 of the Civil Code would you recommend to them? Specific Performance with
damages or Rescission with damages? Why? Explain briefly.

7. Andrew owed Jamby P10,000 under one promissory note, another P20,000 on another promissory note where there
is provided a security in the from of ac chattel mortgage over shares of stocks and P30,000 on another promissory note
where the loan is subject to a 10% interest per annum. All three promissory notes had the same due date. On due date
Andrew only had P15,000 and gave the same to Jamby. Jamby received the money and applied the same to the
1st promissory note and partly to the 2nd promissory note. When Andrew found out about this, he protested and said
that the application should have been to the 2nd and 3rd and that the 1st should remain unpaid. Is he correct?

8. Miriam sold her house to Apnoy for 12million, payable in 6 monthly installments, with a provision that in case Apnoy
fails to pay all 6 installments, he shall forfeit 50 percent of whatever was paid as penalty. And upon the refund of the
other 50 percent, the sale is automatically cancelled. After paying 5 installments, Apnoy didn't pay on the due date of
the 6th and final installment. His best friend, Crown, worried about Apnoy's disappearance, offered to make the last
payment in cash to Miriam. Miriam refused to accept and went on to deposit 5 million in court. She proceeded to rescind
the contract unilaterally and resell the property to Johnny, Apnoy’s uncle and partner, for 9million. When Apnoy
reappeared, he was shocked to learn of the cancellation, consignation and resale. So he sought to have the sale
cancelled in a case he filed against Johnny and Miriam. Decide

9. Budoy borrowed Caloy’s pick up truck for a day in order to bring some used furnitures from his office. On the way
home, the pick-up was spotted by a promotions team from RC Cola which saw that the truck had an RC Cola bumper
sticker. They stopped Budoy and announced that he just won one million pesos because of the bumper sticker. Between
Budoy and Caloy, who should own the prize money?

10. Tutas worked for ATelecom as a communication equipment specialist. His field of expertise was in repairing
cellphone network antenna. 4 years ago, he was sent abroad for training by ATelecom. Seeing that his career had not
been progressing the past two years, he resigned and applied at BTelecom, the only other mobile phone operator in the
country. When ATelecom found out where Tutas was planning to work, it sued for an injunction to stop him for working
and for damages based on the contract he signed 4 years ago wherein he agreed to the training in Finland provided
that he would not work for any of the competiting telecom companies in the Philippines within 5 years from his separation
from ATelecom and should he do so and work for competitor, he agreed to pay a liquidated damages of 5million pesos.
Tutas refused to pay. ATelecom sued in court. Decide

11. Contractor X agreed to build a new road for the government from Manila to Bicol at a price of P 20 billion. Contractor
X did so for the Manila to Laguna stretch. But when work started for the Laguna to Bicol leg, a fierce war erupted
between the government and a new secessionist movement called Lupang Malaya. Every now and then, workers of
Contractor X would be caught in the crossfire, and this resulted to occasional deaths of workers. Unable to bear the
untimely death of his workers and also the economic cost of such deaths. Contractor X told the government that he was
backing out of the contract. The government refused as no other contractor will do the work, and it promised to shoulder
the cost of ail workers' deaths as an incentive to Contractor X. The government further argued that as the creditor, it
could not be compelled to accept partial performance of the obligation. Because of the issue. Contractor X filed a case
in court. If you were the judge, will you allow the termination of the contract, and on what legal basis?

12. Susy and Geno borrowed jointly and/or severally P 1 million from Ronald, and promised to pay on 25 August 2007.
On the due date, the debtors offered to pay, but Ronald refused to accept the payment because he did not like the way
Geno was being cozy with Susy, who was Ronald's crush. As a result, Geno went to court to undertake the consignation
process. After the court pronounced a valid consignation, Susy, using all her charms, asked permission to withdraw the
money. Ronald readily agreed, not knowing that Susy was just doing what Geno told her to do. The day after the
withdrawal, Ronald saw Susy and Geno engaged in a public display of affection. Angered, Ronald followed Geno to his
house, and demanded immediate payment of the P 1 million. Geno refused since he had used the money for his and
Susy's wedding expenses. Geno argued that the court had pronounced that a valid consignation had been made.Can
Geno refuse to pay Ronald? Please briefly justify your answer.

13. 25 pilots resigned from Philippine Airlines (PAL) abruptly without filing the contractual requirement of 180 days notice
before their resignation could be in effect. The pilots were hired en masse by a foreign airline competing with PAL by
being offered double their salary. PAL filed a case with the Regional Trial Court of Pasay seeking to restrain the foreign
airline from hiring pilots. They also ask the Court to require the pilots to comply with their contractual obligation to work
till the 180th day from receipt of their notice. Decide.

14. Mel and Ampy entered into an agreement whereby Mel will provide Ampy services as a property consultant for as
long as Ampy provides Mel office stationeries and other office consumables. Their contract had a provision, which
allowed either party to rescind the contract in the event that either violated the terms thereof. One day Ampy requested
Mel for assistance in evaluating the terms of a lease agreement with a third party. Mel refused saying that evaluation of
lease contracts is not within his expertise. Ampy then sent notice to Mel saying that by his refusal, he has violated the
terms of the agreement. She then stopped providing Mel office paper and other consumables. Mel sued Ampy
questioning the propriety of the rescission. After five years the courts found the rescission valid. Mel then said that in
spite of such finding Ampy should still pay damages for not providing office consumables for the five year period in as
much as it is only when the courts confirmed the decision did the rescission validly take place. Ampy argued that she
had the right to extra-judicial rescission and her right was continued. Mel said that while she had the right to rescind
extra-judicially, by filing the case he questioned the propriety of her exercise and therefore the rescission was held in
abeyance during the time of the suit. Rescission therefore only took place at the time the court confirmed her right to
rescind it, which is five years later. Who is correct and why?

15. Janice donated land to Gary with the condition that Gary will build a school therein and not use the property for any
other reason. Gary received the land and caused the title to be placed in his name, with the annotation ofJanice's
prohibition. He then put up a school therein accordingly. Ten years later Gary decided that the area where the land
stands is not ideal for a school and closed the school down. He then used the same as a training and livelihood for the
squatters in the area. Janice heard of this and immediately demanded that Gary return the land to her. Gary refused.
Janice filed suit causing the rescission of the donation. Gary, in defense said that their contract did not provide for the
remedy of rescission. Besides he said that the land is in his name and he did comply with her requirement. He therefore
consolidated his ownership over the land and now enjoys the full rights to use the same as he pleases. What kind of
obligation is involved here and should the courts rescind the contract?

16. Angelika bought and received from Carabao's Milk, Inc. 100 cartons of milk upon Angelika's promise to pay that very
afternoon. Although Angelika had not yet paid, she sold the 100 cartons of milk to Bongbong's Sari-Sari Store owned
by Bongbong Tan. Carabao's Milk, Inc. now sues for the recovery of the 100 cartons of milk from Bongbong Tan. Will
the action prosper? Explain.

17. A, B and C are joint and several debtors ofD in the amount ofP60,000 payable on July 31, 2007, without need of
demand. D allows C an extension of 2 years within which to pay his portion of the indebtedness. Upon maturity of the
debt and upon demand by D, should A and B pay the entire obligation to D, may they compel C to reimburse them with
his share without waiting for the 2-year period?

18. James owns three animals - a horse, a cow and a carabao. James entered into an agreement with John whereby
in exchange for ten thousand pesos James would deliver his horse to John within three days but in the same agreement
James was given the right to substitute the cow or carabao in place of the horse if James so wished. On the due date
as James was about to deliver the horse , the horse died of a heart attack and James grief stricken shot the cow and
then the carabao. John was angry at James for shooting the cow and carabao and demanded that James pay the value
of the carabao in accordance with the law. James said he was not liable for damages. Who is correct and why?

19. A was obligated to pay B PI,000,000 and C P500,000 both on July 10,2007. On the due date A could not pay either
of the creditor so he assigned his car worth P500,000 to both of them as payment by cession. Due to fortuitous events
the car depreciated in value and was sold only for P250.000 so B and C demanded the balance of the debt of PI,250,000
from A . A in his defense countered that the lessening of value was due to fortuitous events and hence A stated that he
was only liable for P 1,000,000 . Who is correct and why?

20. Jonathan, Richard and Sam opened up a restaurant, for which they needed capital in the amount ofPhp3,000,000.00.
To speed up the release, they decided to borrow money individually, though by accident they all wound up borrowing
from the same bank, Banco de Oro, Wilson St. Branch. Each was therefore indebted to BDO in the amount of Php
1,000,000.00 payable within ten years at a specified rate of interest. Their attempt to keep their scheme secret was
short-lived – when the business did not take off as they expected, they all defaulted on their payments starting at the
fourth month, and by the seventh month, despite demands made by the bank on each of them, they all failed to pay. It
was then that BDO discovered that the 3 borrowers came from the same venture. BDO approached you for help in
solving this delinquent account, particularly on how to collect the outstanding balances of each borrower. To start with,
what legal principle is applicable here: What would you advise BDO?

21. After returning to Manila, Samantha received a letter from BPI advising her of her delinquent status on her loan.
Samantha replied that she had paid her loan while she was on vacation at Baguio, to the BPI Family Savings Bank
along Session Road. BPI replied that the BPI Family Savings Bank was not an authorized collector of BPI loans, to
which Samantha retorted "How was I to know? Your logo was everywhere, including your company slogan about taking
depositors far away". Who is correct and why?

22. Angel buys from the canteen everyday. Ali, man at the canteen selling the hotdog, took a liking to her. One day, she
bought a hotdog and coke, and paid Ali with a 100 peso bill. Ali wanting to strike up a conversation with her and make
her stay longer gave her a 500 peso bill on top other change for the 100. When Angel got the extra change she smiled
and left without thanking Ali. The next day, Ali decided to ask for his money back from the ingrate Angel. Is Angel obliged
to return the money? What is the source of her obligation if any?

23. Jinggoy sold to Nene on July 5, a horse name Ping for P 20,000 to be delivered on July 20 without need for demand.
Jinggoy agreed that, if he cannot deliver Ping to Nene, he will deliver instead one of his Pajero. Nene gave the payment
immediately. However, on July 15, Jinggoy sold Ping to Manny for 25,000 which Manny also promptly paid. On July 19,
before Jinggoy could deliver Ping to either Nene or Manny, Typhoon Egay flooded the stable and caused the death of
Ping. What is the liability of Jinggoy, if any, to Nene? Explain your answer.
If Ping gave birth to a colt named Kiko on July 17, who has the right to Kiko?

24. Karl agreed to lend funds to Yves so that the latter could start his RTW business after winning “Project Runway
Algeria" provided Yves does not collaborate and consult with Coco Channel, Yves' childhood idol who passed away
when Yves was in his teens. Yves agreed. Yves deliberately complied with the condition so that he can demand for
delivery of the funds. When Yves demanded for the start-up money, Karl refused to give on the ground that the condition
is impossible therefore the obligation is void. And if the obligation is void, there is nothing to demand, Karl added. Who
do you think is correct - Karl or Yves - and why?

25. Tyra borrowed P 1 million from Bank Oprah (B.O.) to expand her talent agency business. Subsequently, she won a
tiara - a real beauty - worth at least P 2 million in a raffle contest. Since her neighborhood was not safe, Tyra put her
tiara in a deposit box of B.O., with matching publicity. Unfortunately, Tyra's business floundered as her trusted
accountant siphoned all company assets, leaving her with nothing. As Tyra was unable to pay her debt, the President
of B.O. ordered that her tiara be taken by the bank as payment. In the spirit of justice, B.O. offered her a change of P
500,000. Tyra protested B.O.'s move because she wanted to wear the tiara when she gets married to Mr. J. Tyra,
however, did not have a counter-proposal as to how she will settle her debt with B.O. Can Tyra's debt be extinguished
in the manner proposed by the bank?

26. Tyson opened a medical spa somewhere in the foothills of Mt. Banahaw. Naomi, who flew all theway from London,
paid P 5,000 to experience traditional hilot. She wanted to soothe her feet that achedso much from doing 5 shows in a
span of one week. Naomi did not have to demand for the service asTyson, a former model himself and a student of the
Atimonan Hilot Academy (A.H.A.), promptly performed the hilot. Tyson was thus surprised when Naomi sued him for
damages as she could no longerwalk right after the massage. Tyson refused to pay because he clearly was not in
default or legal delay since he performed the prestation when it was due and demandable. Does Naomi have a right to
ask for damages even if Tyson is not in legal delay as he claims?

27. A and B are obligated to deliver to C and D either their Old 1977 Toyota car, or P10,000 in cash, or B's 20 K carat
gold ring. Before the due date, A and B through their own fault lost the car and then the ring. On the due date C and D
demanded that A and B deliver the value of the ring since it was the last thing lost. A and B refused the demand stating
that C and D did not have the right to demand the value of the ring. Who is correct and explain why?

28. A and B are solidarity liable to C and D for P16.000 due September 1, 2008; C and D are solidarily liable to A and
B for PI 0,000 due December 1, 2008. A and B's debt to C and D is guaranteed by G. On September 1, 2008 A and B
tendered payment of the amount due to C and D but C and D unjustly refused and so A and B consigned the money to
a court of law. On December 12, 2008 the court finally decreed the consignation proper and C and D accepted the
decision. On December 13, 2008however B asked C and D if he could withdraw the money consigned because he
needed it but promised to return the same within' 2 days to which C and D reluctantly agreed. The next day B died
without anyone's fault. Who then can C and D demand payment from and how much can they collect? Explain

29. A,B, and C are liable to X,Y and Z for 1) P9,000 due Sept 10, 2008 and 2) P6.000 due Sept 20, 2008 and 3) P7,000
subject to a suspensive condition that X kills Y and Z within the year. All of the debts of A,B, and C are secured by one
security which is A,B and C's cow named Bantay. On the other hand X,Y and Z are liable to A,B and C P4.000 due Sept
11, 2008 and guaranteed by G and subject to a penal provision. On Sept 2, 2008 the cow Bantay died due to fortuitous
events and A,B and C did not replace the said security. On Sept 11, 2008 X, Y and Z assigned A,B, and C's debt to Q
and R but only A and B were notified of the assignment. On Sept 13, Q and R demanded payment from C. How much
can they demand from C and why

30. Gamett borrowed from Alien 10,000 pesos payable at the end of three (3) years. Before the end of the second year,
Gamett went to the house of Alien to pay him the amount in full. Alien refused to accept. Gamett gave the money instead
to Alien's son Paul, who was just standing outside the house. Paul accepted the money and brought it to the school.
But in school, he was robbed by the school bully, Kobe.Paul didn't dare to tell his dad about the lost. At the end of the
third year, Alien demanded payment from Gamett, Garnett informed him that he had already paid him thru Paul. Decide
with reason.

31. In 1985, Dr. T.C. Lim donated a parcel of land in Valenzuela to ASC College. The contract of donation provided that
the school shall build a new campus for its school of medicine in the land donated. Furthermore, it was agreed that
within a reasonable time after the death of Dr. Lim, ASC shall name its hospital Dr. T.C. Lim Memorial Hospital. Dr Lim
passed away in 2003 at the ripe old age of 94. In 2008, 5 years after the death of Dr. Lim, his heirs demanded that the
donation be rescinded for failure to comply with the conditional obligation and the land be returned to them. This was
because ASC never name the hospital after their late father despite completing its new campus and hospital in 1997.
Decide with reason.
32. Maribel entered into a contract with Raffy to buy a parcel of land. According to the contract Maribel is supposed to
pay a monthly amortization of PI 0,000 until the purchase price is fully paid. After regularly paying for 10 months Maribel
failed to pay the 11th and the 12th. Thereafter, she started paying again and Raffy continued to receive the same without
comment. With just a few months to go Raffy refused to receive any more payments saying that since Maribel delayed
in paying for two months, there are sufficient grounds to terminate the sale extra-judicially as provided for in one of the
provisions under their contract. Maribel then tendered payment for the balance. Upon Raffy's refusal Maribel then filed
a case in court for specific performance and for consignment of the balance of the purchase price. Raffy in defense to
the specific performance said that the breach of the contract was never corrected and his rights to rescind the contract
were never waived. The irregularity of the payment is a valid ground for the rescission thereof. Maribel countered that
she is still entitled to purchase the property. Who is correct and why?

33. Jasper lent PI 00,000 to Mildred subject to 10 interest per annum and a payment penalty of 2% per month for delayed
payment. Mildred then started paying a monthly amount of PI 0,000. Jasper applied he payment to the principal, interest
and penalties but the bulk went to principal. Later, after an accounting was made, it appears that the principal had
already been fully paid. Jasper though continued to bill Mildred for the interest. Mildred questioned this practice and
refused to pay. Jasper filed suit to collect the interest. He argued that according to the law, if a debt produces interest
payment of the principal shall not be deemed to have been made until the interests have been covered. Therefore, he
argued, while his receipts said that the application of the payment w«as made to principal by law they were automatically
applied to interest first. He then argued that the amount he is now collecting is rightfully the principal. Mildred countered
saying that by applying the payments to the principal and once that has been paid, there is no longer any basis for the
interest to be charged. Who is correct?

34. Alt and Bob are the proud owners of three rare animals a pink cat (worth Php 20,000) ; a bright red dog (worth
Phpl4,000) and a green eagle (worth Phpl2,000). By virtue of a contract Alt and Bob obligated themselves to give
Charles any one of the three animals after one year from date of contract. In three successive days prior to the arrival
of the contract period. Bob killed the cat, the dog and the eagle (in that order). As a consequence when the due date
arrived, Charles demanded that Bob pay the entire
amount of the dog which is worth Php 14,000 which he chose as basis for the value of the damage being the choice
with the median quality. Bob disagreed. How much if any is Bob liable to Charles? Explain your basis.

35. On August 1 2008 Arnold, Bob, and Charles borrowed PI 00,000 from triplets Xander, Yoyo and Zonk. The three
borrowers used the money to buy a second hand truck for their catering business. They promised to pay the said amount
back one year from the said date and to guarantee the said loan they used the truck as collateral and security for the
said loan. On August 2, 2008 Arnold Bob and Charles in a separate agreement obligated themselves to deliver on
August 5, 2008 a roasted calf to Xander Yoyo and Zonk for the three creditor's joint birthday party. On August 5, 2008
on the way to the party with the calf, the three got into an accident and the said truck along with the calf was totally
destroyed. The three debtors having lost their beloved truck went home depressed and sent a text message to the three
creditors of the incident. Three days later the three debtors received a demand letter from the three creditors demanding
that a) they immediately pay the PI 00,000 debt and b) they pay for the value of the calf they were supposed to deliver.
When the three debtors refused they were sued. In their defense they raised the following a) the PI 00,000 debt is not
yet due because there was a suspensive period of one year which has not arrived, b) they cannot be held liable for the
value of the calf because there was no demand on the part of the creditors and because of the presence of fortuitous
event. If you are the judge how would you decide. Discuss both of the defenses.

36. John, Richie and Chico are solidarity bound under a loan obligation in the amount of Php500,000.00 to solidary
creditors Mick and Keith, payable on 31 August 2009. On 15 August 2009 Keith's authorized representative, Ron goes
over to Richie to collect even a partial payment, to which Richie hands over Php 100,000.00. On 31 August 2009, John
goes over to Mick and hands over Php500,000.00 for which Mick acknowledges as full payment of the debt.When he
found out about John's act, Richie sought to recover the amount he previously paid to Keith, who claimed that he passed
on his rights (and the amount of Php 100,000.00) to Bill last 16 August 2009 in payment of a previous debt between
Keith and Bill. Despondent, Richie tells John and Chico his predicament, to which John replied, "I'm sorry about what
happened, but right now, all 1 care about is your respective shares in the obligation that you now owe to me". Decide.

37. Michael owns a small interior design firm specializing in moderate sized homes and commercial areas/offices. He
was engaged by the Eternal Memories, Inc, to design their offices, particularly their new reception area, conference
room and offices of their 3 new vice-presidents. Total price for the service: Php375.000.00, completion time; on or before
15 September 2009. By 10 September 2009, it appeared that the works were not going to be done on time: the offices
still had no floor tiles and wall material, the conference room had no electrical layouts and the reception area looked
anything but appealing for lack of roofing and flooring. Eternal Memories, through their CEO Mr. Trent Reznor, wants to
cancel the whole deal and refuse payment altogether. Will he be justified in doing so?
38. Ibarra owed P 1.2 million to Dona Victorina, which he had to pay in monthly instalments within one year. On the 11th
month, Ibarra went to the house of Dona Victorina, and, as he had always done in the past, handed over the payment
for that month to Sisa, Dona Victoria's trusted mayordomu.Sisa, ever the organized person that she is, issued a hand-
written receipt to Ibarra. How surprised was Ibarra when a week passed after the payment. Dona Victorina demanded
that he pay her again. According to the creditor, the payment Ibarra made to Sisa, a third person, did not reach her
(Dona Victorina). Being an honorable man, Ibarra paid again. Do you agree with what Ibarra did?

39. Florante bought a calesa from Adolfo for P 10,000, which he had paid in check. Adolfo then kept the check in his
drawer. Since Adolfo was busy pursuing Laura, he forgot to deposit the check for 11 months. When Adolfo when to the
bank, the check was not accepted for deposit because it was already stale. Although embarrassed, Adolfo went to
Florante for a replacement check. Florante refused to issue another check on the conviction that his obligation has been
extinguished by his issuance of the first check to Adolfo. Specifically, he cites two grounds for his position: a) even
creditors could also be in legal delay, and Adolfo was in clear delay; and b) the check's non-payment was due to the
fault of Adolfo, the creditor. Thus, Florante said, he should not be inconvenienced by Adolfo's negligence. Is Florante's
legal position correct?

40. Bitagan was granted a 900,000 pesos loan jointly by Agagon and Santos, for the purpose of improving a building
he recently bought. Bitagan, executed one promissory note (“PN”) in favor of both Agagon and Santos, with her friends.,
Lim and Cu, as signatory. In the PN, they all acknowledged that they are “individually and collectively” liable and waived
the need for prior demand. To secure the PN, Lim even executed a real estate mortgage on his own property in favor
of Both Agagon and Santos.When Bitagan defaulted on the PN, Agagon demanded payment from Bitagan, Cu and Lim
for 900,000. When none of the three paid, she foreclosed the real estate mortgage over Lim’s property. Lim opposed
the foreclosure on the ground that he is only a co-signatory; that no demand was made upon him for payment; and even
assuming he is liable, his liability should not go beyond one sixth of the loan. Further, Lim said that Santos never
authorized Agagon to collect. Decide.

41. Angela sold a house to Corinne,. and the payment of the balance of the sales price is conditioned on Bemie, the
lessee of the property, leaving the property. Corinne agreed to take care of making sure Bernie leaves the property.
Angela later decided to question the validity of the contract and
said that the contract is void as it is subject to a potestative condition. Is Angela correct?

42. Felipe borrowed $100 from Gustavo in January 1, 2000, when the Phil P – US$ exchange rate was P56 – US$1,
payable after 8 years. On March 1, 2008, Felipe tendered to Gustavo a cashier’s check in the amount of P4,135 in
payment of his US$ 100 debt, based on the Phil P – US$ exchange rate at that time. Gustavo received the check, but
forgot to deposit it until Sept. 12, 2008. His bank refused to accept the check because it had become stale. Gustavo
now wants Felipe to pay him in cash the amount of P5,600. Claiming that the previous payment was not in legal tender,
and that there has been extraordinary appreciation of the Philippine Peso since 2000 never before seen in the history
of the country, and therefore, Felipe should pay him the value of the debt in Peso at the time it was incurred. Felipe
refused to pay him again, claiming that Gustavo is estopped from raising the issue of legal tender, having accepted the
check in March, and that it was Gustavo’s negligence in not depositing the check immediately that caused the check to
become stale. Decide.

43. Kris bought a house and lot from Robin subject to the condition that she shall use it only as a museum for her
deceased husband, Pacquiao, of whom Robin was big fan. Ten years later, Kris sold the property to James who
converted it into a themed restaurant named PACMAN with the memorabilia of the late Pacquiao all around the
restaurant. Robin demanded that James ceased operation of the restaurant but James refused, alleging that the
condition was agreed upon by Kris and Robin and does not affect him. Also that obligation has been extinguished by
fortuitous event when Kris put up a museum in honor of her husband but that the museum went bankrupt just before
she sold the property to him. Lastly, James raised the issue of substantial compliance with the themed restaurant
attracting people because of patrons who came to see the memorabilia of Pacquiao and would often take pictures inside
the restaurant with those memorabilia. Decide.

44. Manuel, married to Gocinco, obtained a loan for 700,000 from Maasin. The loan was evidenced by a promissory
note and secured by a real estate mortgage over a land and building owned by the father of Gocinco in Binondo. On
due date, Manuel could not pay his loan. He asked Maasin to give him 2 more weeks to find money. After more than
two months, Manuel instructed Maasin to go to PNB Escolta to get her payment. Maasin went to collect, but found out
from the branch manager that it was not Manuel who was paying, but Gocinco who was paying him thru a loan from
PNB using the same land and building in Binondo that was already mortgaged to Maasin as collateral. Maasin refused
the payment from third party and proceeded to foreclose on the property of the father of Gocinco in Binondo. Gocinco's
father questioned the foreclosure and claimed that his obligation as a guarantor under the mortgage had already been
extinguished by the tender of payment by PNB and the refusal of the Maasin to accept. Decide.
45. Jay promised he will let Conan star in his own TV show on prime time within 5 years from the date of contract. In
case he doesn’t do so, he will either pay Conan one million peso, give Conan Jay’s Harley Davidson bike that he drives
around LA, or let Conan hosts the Oscar Awards. By the third year, Jay decided to just pay Conan one million peso to
extinguish his obligation. Conan refused to accept the one million peso. He said the 5 year period is not yet over. Besides,
if Jay really can’t give him a TV show, Conan wants as penalty for Jay to give him the Harley Davidson bike not One
Million only. Decide

46. Zorro had an all-night drinking party at a bar in The Fort. At 1:30am, when the bar closed, Felipe who lived in
Katipunan asked if he could hitch with Zorro. Zorro let him ride in his car. On their way back, there was no car along the
C5 Highway, so Zorro drove very fast. Then misfortuned happened. Zorro who was driving his Nissan GTR sports car
was managing a curve when he lost control of the vehicle and crossed over to the opposite lane, hitting a lamp post. As
a result of the accident, Felipe died instantly. The wife of Felipe demanded from Zorro's family that the pay her 1.8million
pesos for killing her husband. Zorro's dad refused to pay. He claimed that the cause of death was fortuitous event
therefore no obligation on their part to pay. In fact Zorro was still in critical condition up to now. Besides, it was Felipe
who rode with Zorro knowing he was drunk. Does Zorro have any obligation to the wife of Felipe?

47. Bitagan was granted a 900,000 pesos loan jointly by Agagon and Santos, for the purpose of improving a building
he recently bought. Bitagan, executed one promissory note (“PN”) in favor of both Agagon and Santos, with her friends,
Lim and Cu, as cosignatory. In the PN, they all acknowledged that they are “individually and collectively” liable and
waived the need for prior demand. To secure the PN, Lim even executed a real estate mortgage on his own property in
favor of both Agagon and Santos. When Bitagan defaulted on the PN, Agagon demanded payment from Bitagan, Cu
and Lim for 900,000. When none of the three paid, she foreclosed the real estate mortgage over Lim’s property. Lim
opposed the foreclosure on the ground that he is only a co-signatory; that no demand was made upon him for payment;
and even assuming he is liable, his liability should not go beyond one sixth of the loan. Further, Lim said that Santos
never authorized Agagon to collect. Decide.

48. James was employed a security guard by SM Malls to guard one of its movie houses. One night, the guard shot
Mayette, a gate crasher who tried to enter the movie theater without first buying a ticket. Mayette brought along a bolo
and was threatening to harm other movie goers. As a result of the shooting, the guard was charged with homicide.
James demanded that his employer hired a lawyer to defend him. He claimed that since he shot Mayette in the
performance of his duty as an employee, SM is liable to answer for his legal cost. SM refused, arguing that providing
legal assistance is not one of requirements under the Labor Code. Neither is there any other law or contract that requires
such assistance. Decide.

49. Manny" owes "Noynoy" P20,000 which became due and payable last October 1,2009. On that date, "Manny offered
"Noynoy" P12,000, the only money he then had, but “Noynoy" refused to accept the payment. "Manny" thereafter met
"Gibo", "Noynoy's" l4-year-old son, to whom he gave the P12,000 with the request that he turn the money over to his
father. The money was not given by ”Gibo" to "Noynoy". Instead, he used it to pay for the debts incurred by "Gibo" at
Dick's sari sari store where he bought his daily baon to school. Was “Noynoy" justified in refusing to accept the payment
of "Manny"? A few months after, "Manny" hit the C-5 lotto jackpot and is now very rich. May "Noynoy" still recover the
full amount of “Manny's" debt of P20,000? Why or why not?

50. A sold B a parcel of land on condition that the price would be paid as soon as B had paid off the mortgage and other
debts of the estate. A waited for some time, but since B had not yet succeeded in paying off the debts, A brought an
action to cancel the sale. Decide with reasons.

51. Bodjie, who worked in Manila-based Batibot, Inc. as a supervisor, was assigned to the company's branch in Cebu.
Being a practical person, Bodjie offered to lease his house to Sheila until such time that Bodjie gets transferred back to
Manila. Bodjie did very well in Cebu, which he also enjoyed; but he terribly missed his house in Manila. So he pleaded
with his boss for a position in the head office; and his request was granted. Thus, Bodjie asked Sheila to vacate the
house within one month. Sheila, who has fallen in love with the house, refused on the ground that Bodjie was unfair
since he had interfered with the fulfillment of the condition; and was therefore in violation of the constructive fulfillment
rule. Is Sheila's position legally correct?

52. Angie agreed to sell her bicycle to Bertie for P 5,000.00 three days after they enter into contract. On the third day,
Bernie went to Angie's place to offer her payment; but Angie was not able to deliver the bike because she lent it to her
friend, Charie. Upon being informed of the situation, Bernie left in a huff, and filed a case in court for damages. Angie
defended herself by claiming that the suit for damages was premature because she was merely in ordinary delay, and
not legal delay. Do you agree or disagree with Angie? Please legal basis for your answer.
53. Samantha was under contract with Super Films for 3 TV series over the next two years, for a contract price of
Php50M total. The first series did not do well in the ratings,
And the second fared no better, largely because of poor marketing and promo activities by Super Films. Sensing no
improvement in the management, Samantha wants to end her contract, collect her fee for the third TV series yet to be
filmed and sired, since she knows its going to be the most monumental loss the film company will experience. Can she
do so? Cite the legal basis for your answer.

54. Event Programs, Inc. is an event organizer who will help set up and nm the forthcoming sales convention of Mistral
Pharma, Inc. The activities will span 3 days: Day I Convenntion proper, Day 2 Team Building/Sportsfest, Day 3: Final
Convention with fellowship night. Total fee: Php 350,000.00 + VAT. When the sales convention started (Day 1), sound
systems did not work, awards and presentations were not coordinated and participants often lost their way among the
many booths in the venue. In other words, Day 1 was a total mess. Day 2 and 3 went by without incident. Mistral Pharma
did not want to pay EPI for the reason that the event was not coordinated well enough to satisfy their bosses, and caused
humiliation to the company. What legal principle would support this argument, and is the company correct?

55. Danny went to Rapide motors to have his car's brake system checked. Rapide inspected the car and recommended
that he change his brake fluid, to which Danny agreed. Two weeks later, Danny used his car to wade through the flood
waters of typhoon Ondoy. Three days after the Ondoy floods, Danny used his car going to Tarlac and his brake failed
and hit a lamp post and suffered P100,000 in damages.
It was found that Rapide used a low-grade brake fluid that was not moisture tolerant. The brake failed when water from
Ondoy's flood mixed and contaminated the low-grade brake fluid. Danny contends that Rapide should be held liable for
the damage since it used a low-grade brake fluid. Rapide contends that while it used a low-grade brake fluid, the
proximate cause of the brake failure is still typhoon Ondoy's flood, thus it is fortuitous. Between Danny and Rapide, who
is correct?

56. A obtained a housing loan of 5 million pesos payable in 15 years from X bank which he will use to construct his
house. The house was used as the guaranty for the loan. After one year from getting the loan said house was
constructed but months later the house was totally destroyed by typhoon ondoy. X bank fearing disinterest in payment
of the loan due to the loss of the house immediately demanded that A pay the loan. A refused on the ground that he
has the benefit of a period. Can X demand payment? Explain.

57. A Inc promised its employees that if they stay for 20 years they will be given a loyalty bonus. On the 19th year A inc
was forced to close the company due to fortuitous events. The employees demanded the loyalty bonus to which A inc
refused saying that the suspensive condition was not met. the employees contended that it was the decision of A that
stopped the condition from being fullfilled. Should the employees' demand be granted? Explain.

58. Brad is obligated to provide Guido architectural services under a contract of engagement. Under the scope of
services, Brad will a) make the plans and drawings for a building, b) determine the initial construction requirements, c)
advise Guido in the choice of contractor during the bidding for construction services, d) monitor the construction process
and e) provide a certificate that the construction was completed according to the approved plan. For the entire service,
Brad is to be paid P2M. Brad performed his duties well. However, after advising Guido on the choice of contractor under
item C, he told Guido that he can no longer perform the remainder of the contract because he and his family were
migrating to Canada. He then billed Guido P2M on the ground of substantial compliance in good faith. Guido refused to
pay. Is Brad entitled to payment as he billed? If no, how much is Brad entitled to, if any?

59. Janice donated land to Gary with the condition that Gary will build a grade school therein and not use the property
for any other purpose other than primary education as allowed by law. Gary received the land and caused the title to be
placed in his name, with the annotation of Janice's prohibition. He then put up a school therein. Ten years later, Janice
decided that she wanted the property back. She found out that Gary had not renewed his license to run a school in the
land for the last 2 years. She then asked the DepEd to issue a cease and desist order with prayer for permanent
prohibition, against Gary's school from operating, due to the absence of a proper license. When the order was issued
and the school stopped operating with a permanent prohibition Janice asked for the property back. Under what legal
principle can Janice seek the return of the land to her?