List of Problems

The Law on Obligations and Contracts 2014

By Hector S. De Leon, Hector M. De Leon, Jr.
October 10, 2016
name.
School of Electrical, Electronics, and Computer Engineering, Mapa Institute of Technology
Intramuros, Manila Philippines
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1.

X saw at about one (1:00p.m.) in the afternoon a child

alone in a shopping mall. The child who strayed from Y,
his mother, was in tears and appeared very hungry. Out of
pity, X took him to a restaurant to eat for which he spent
P150. Y did not give her consent to the good deed of X.
Furthermore, they were on their way home before the
child got lost. Is X entitled to reimbursed by Y for the
amount of P150?
D (debtor) borrowed P10,000 from C (creditor). On the
due date of the loan, D could not pay C because he lost to
a robber the P10,000 intended for C. In addition, he
suffered financial reverses, and he was short of cash even
for his current familys needs. Is D legally justified to
refuse to pay C?

2.

5.

D (debtor) borrowed P10,000, from C (creditor). It was

agreed that D could pay P10,000 or deliver his piano on
August 22. On August 20, D informed C that the former
would deliver his piano. Can D still change his period
considering that he was given the right of choice?
6.

S (seller) sold to B (buyer) on July 5, a horse named

Silver to be delivered on July 20. However, on July 15, S
sold again and delivered the horse to T. Who has a better
right to Silver?

D (debtor) borrowed P20,000 from C (creditor) payable

on or before August 30. Before the arrival of the due date,
C agreed to the pronmise of B to pay C if B wants. Can C
insist that B pay not later than August 30?
S sold a parcel of land to B for P240,000 payable in
installments of P20,000 a year. The land was delivered to
B who obtained ownership thereof. After B had paid
P200,000, he could no longer continuing paying in view
of financial reverses but he was willing to pay the balance
of P40,000 if given more time. Thereupon, S sued for
rescission under Article 1191. If you were the judge,
would you grant rescission?

4.

D binds himself to give P10,000 from C upon the death of

the father of D. Is the obligation of D conditional or one
with a period

Under a contract, X (obligor) promised to deliver Y

(oblige) item one, or item two, or item three. Y was given
the right of choice. What is the liability of X in case,
through his fault:
a. Item two is lost or destroyed;
b. All the item are lost or destroyed?

D (debtor) borrowed P20,000 from C (creditor) payable

after one (1) year. Is D liable to pay interest?
3.

D obtained a loan from C in the amount of P50,000,

payable on August 10. As security for his debt, D
mortgaged his car in favor of C. The car, however, was
substantially damaged without the fault of D. What rights,
if any, does C have under the law? May C demand
payment from D even before August 10?

A owes B and C, solidary creditors, the sum of P20,000:

c. Can C condone the debt without the consent of B?
d. Can C assign his rights without the consent of B?
7.

A and B bind themselves to pay C their loan of P10,000

on certain date. Is the obligation divisible or indivisible?
X promises to deliver to Y a specific horse. Their contract
contains a penal clause that in case of non-fulfillment, X
shall pay a penalty of P10,000. X wants to just pay that
penalty instead of delivering the horse. Has Y the right to
refuse to accept the penalty in lieu of the horse?

8.

In the same problem, X was able to show that Y did not

suffer any damage by Xs violation of his obligation. Can
Y still enforce the penalty?

D (debtor) owes C (creditor) P10,000 with G as guarantor.

On the due date of the obligation, T, a third person,
offered to pay the obligation of D. Can C legally refuse to
accept the payment? How about an offer of payment from
G?
9.

M (maker) issued a promissory note for P10,000 in favor

of P (payee) who lost the note which was found by T who
demands payment from M. M did not know that the note
was lost by P. Is M justified in paying T?
X obliges himself to deliver a specific thing to Y on a
certain date. The thing was lost by X without his fault and
before he has incurred in delay. Does it mean that X is
already exempt from liability?

10. Suppose in the preceding problem, the thing was lost

through the fault of Z, a third person. State the effect of
the loss as far as X, Y, and Z are concerned.
A, B, and C are jointly liable to D in the amount of
P15,000. Subsequently, D assigned his credit to C in
consideration for goods sold by C to D. Give the effect of
the assignment.
11. Assuming the obligation of A, B, and C is solidary,
distinguish the effect of the assignment from the first
problem.
D borrowed P50,000 as character loan (no security) from
a bank. Despite demands for payment after the loan fell
due, D did not pay the bank. D has a savings deposit of
P40,000 with the bank. Has the bank the right to apply the
deposit to the payment of Ds debt?
12. The XYZ case. The Chief Finance Officer seems to
practice spurious insurance claims which violates
professional ethics. This problem is to be solved in the
point of view of Z the newly hired manager and Xs boss,
citing his possible courses of action and the consequences
for each one.
13. D owes C P10,000 payable on November 20. C owes D
P10,000 payable on October 20. Can compensation also
take place although the debts are not payable on the same
date?
T (third person) tells C (creditor) that T will pay the debt
of D (debtor). C agrees. Is D released from his obligation
to C?
14. Mga Bayani case. Quality control has been neglected
because of the goal to reach the target of at least 13%
increase in sales.
15. Suppose in the above problem, D proposed to C that T
would substitute D as the new debtor to which C agreed.
Is D still liable to C in case of insolvency of T?

16. A and B entered into a contract not specifically provided

in the Civil Code. Is the contract valid and binding?
S (seller) and B (buyer) entered into a contract of sale. It
was agreed that the price shall be determined by T, a third
person. Can S or B refuse to be bound by Ts
determination of the price if he does not agree with the
amount thereof?
17. In a contract containing an option period, when is the
offerer not allowed to withdraw his offer even before
acceptance by the offeree? When is the offerer allowed to
withdraw his offer even after acceptance?
Suppose in the same problem, what S sold to B, hardware
owner, are 500 bags of cement. S had every reason to
believe that the price of cement would go down. After two
weeks, it did go down. Has B the right to have the sale
annulled?
18. S sold to B for P100,000 a parcel of land belonging to S
located in his hometown without specifying its exact
location and area. Is the sale valid?
S has several pigs. Under a contract of sale, S binds
himself to deliver a pig to a B for P3,000 if the pig has a
weight of at least 30 kilos. State the binding effect of the
sale.
19. S sold to B a specific parcel of land for P500,000. B failed
to pay. Has C the right to have the sale declared void by
the court on the ground of absence of cause for nonpayment of the price?
X gave P10,000 to Y who signed a receipt stating: :This is
to acknowledge payment by X in the amount of P12,000.
X later complains that he received nothing from Y for the
P10,000. Is Y bound to return the P10,000?
S (seller) and B (buyer) entered into a contract of sale of a
parcel land. The sale is embodied only in a private
document and not in a public instrument because it was
not acknowledge before a notary public as required by
law. Is the sale valid?
20. In the same example, what rights, if any, are acquired by
the contracting parties?
S sold his horse X to B under a written contract of sale.
What B thought S was selling him is horse Y. Can S ask
for the reformation of the contract against the obligation
of B who is agreeable to the sale of horse X?
Suppose in the same example, S was intending to sell his
horse Y. Give the three (3) cases when he can ask for
the reformation of the contract.
21. S sold to B his condominium unit including all its
contents. In the unit, there is an antique chair belonging

to X agreed to sell to S. Is the chair to be included in the

sale of the unit?
Suppose in the same problem, the professional fee was
agreed upon, but it is not clear from the written contract
prepared by X upon the request of Y whether it should be
fixed amount of P200,000 or 6% of the cost of
construction. How much is Y liable to pay?
22. D owes C P100,000. Since D fails to pay, C expressed its
willingness to accept the car of D, with the same value,
more or less, in payment of his debt. D, in bad faith, sold
the car to X. Has C the right to ask for the rescission of
the sale?
In the same problem, suppose S, upon reaching the age of
majority, decided to ratify or respect the contract. Has B
the right to refuse the ratification and demand mutual
restitution of the property and the price?

23. I, an insane person, entered into a contract with M, a

minor. What is the effect of ratification:
a. By either; and
b. By both, after becoming incapacitated?
S orally agreed to sell his piano for P7,000 to B who made
a partial payment of P1,000. Later, S denied there was
such a sale. Can B enforce the sale considering that the
contract was oral and the price was more than P500?
24. In consideration of P10,000 given by X to Y, the latter
agreed to burn the house of Z. Later, X told Y to forget the
agreement and to return the money. Y refused. Is X
entitled to recover from Y?
M, a minor, bought a bicycle for P2,000 from N, who is
not a minor. Under the law, the contract is voidable
because of his minority. Give the situation by reason of
which M cannot recover the P2,000 from N.

25.