OBLIGATION

AND
CONTRACTS

SALALAC, MARICAR A.
BSA-1A
1. Corona bound himself to deliver his only house to Covid on April 19, 2020.
On said date, Corona failed to deliver the said house.

Question: Is Corona in legal delay? If yes why? Discuss. If no why? Discuss.

No, Corona failed to deliver his only house to Covid on April 19,2020 but it is
only considered to be ordinary delay because of the absence of demand of
Covid even though the period has been fixed for the fulfillment of the
obligation. Corona also is the one that bound himself to deliver without the
demand from Covid.

2. Ben agreed with Dan that the former will sell his original Samsung cell phone
to the latter for a discount of 50% of the selling price. Delivery and payment
will be on April 1, 2020. On said date, Ben deliberately changed the said cell
phone with an imitation.

Question:

1) What kind of fraud was employed? Why?

Causal Fraud (dolo causante) Ben intentionally change the object (Samsung
cell phone) with imitation in order to earn more money and performed
dishonesty. It cannot be considered as mistake and errors as it is performed in
bad faith in order to deceive Dan that what he is buying is a original
Samsung cell phone.

2) What is the remedy of Dan, if any? Explain.

Dan can recover moral damages and damages for breach of contract. Ben
failed to comply to the terms of contract as he willfully deceive dan. Because
of this Ben must pay for the consequential damages such as recoverable
damages and interest.

3. Kit was a BSCA student of Mang Kanor College when he was shot by Rick, a
security guard on duty at the school premises. Kit was rushed to nearby
hospital for treatment. Kit after the incident filed a case against the school and
its officials for damages.

Question:

a) Is the school liable? Why? Explain with basis.

The school is liable to the damages occurred by Kit from the shot made by
Rick the security guard of school, if and only if, the defendant owe a duty to
the plaintiff?, the defendant breach that duty, the plaintiff was injured,
breach is the proximate cause of the injuries. If this 4 things were fulfilled
then the school may be held liable to damages. But since it was not stated
in the situation that Kik was currently inside the school premises when
he was shot by Rick. So it is presumed that the school is not liable for the
negligent of its subordinates, that’s why Kik should file actions only to
 Rick who causes the damages. The explanation is based on this
https://education.stateuniversity.com/pages/2178/Liability-School-Districts-S
chool-Personnel-Negligence.html

4. Mang Johnny and Homer entered into a contract of agency. And one of the
stipulations in the said contract is that if Mang Johnny commits fraud against
Homer in the future regarding the performance of their contract, Mang Johnny
will not be liable to Homer.

a) Is the agreement valid. Why?

No, it is said that responsibility arising from fraud is demandable in all

obligation and any waiver of an action for future fraud will be void. So if
Mang Johnny will commits fraud against Homer in the future, he must be
liable to the damages that will occur.

5. On January 20, 2020, Francis bound himself to give his only car to Alec if the
latter passes the April 2020 CBLE. Francis passed the CBLE. From January
20, 2020 up to April 2020, Francis introduced some improvements on the said
car like the repainting of the entire body due to deterioration, change of major
engine parts due to oil leakage, and putting leather seat cover.

a) Who has the right over the improvements? Why?

Francis bound himself to give his only car to Alec with the condition that
when Alec passed the CBLE in April 2020. The obligation is suspended not
until the happening of the condition. Since, Alec passed the licensure
examination. Therefore, Francis must fulfill his obligation by delivering the
car to Alec. The latter improvements that is introduced will not be covered by
the obligation of Francis, then Alec is now responsible to the improvements
introduced by Francis since his obligation is extinguished from the time he
delivered the car.

6. On October 12, 2019, Ben obtained a loan from Francis in the amount of P1M
due on March 16, 2020. Subsequently, they both forgot the maturity date of
the obligation and Ben paid it on February 14, 2020.

a.) Can Ben recover what he has paid? Explain.

Ben binds himself to pay the debt or loan from Francis, as they are both liable
for the negligence as they both forgot the maturity date. Since Ben paid on his
own will he cannot recover what he has paid to Francis as the obligation been
extinguished from the time he paid.

7. Arthur obliged himself to deliver to Francis 100 bottles of French perfume.

However, despite diligent efforts of Arthur to deliver all, he was able to
deliver only 98 bottles because of import restrictions.
 Question:

a.) Is the obligation of Arthur extinguished? Explain with legal basis.

Yes, Arthur was able to deliver 98 bottles despite his diligent efforts. As he do
it in good faith he may be extinguished from his liability as the import
restrictions his beyond his power. Francis then should only pay for the amount
Arthur had delivered.

8. Caren mortgaged her property to Francis in the amount of P200,000.00. Alfred,

a third person, pays the whole mortgage debt of Caren to Francis without the
knowledge of Caren. He then asks that Francis assign to him (Alfred) the
former’s rights as mortgagee.

Question:

a. If Francis refuses, can Alfred compel him? Why?

No, Caren should have knowledge regarding to the action made by Alfred, a
third party, in order for the rights of being the mortgagee be pass on him.
Since, it was not mentioned in the contract Alfred has no rights to compel
him to subrogate him in his rights.

b. If Francis wants to make the assignment, can Alfred be subrogated to

Francis’ rights as mortgagee? Explain.

Still no, since this situation is in favor to the debtor even if Francis subrogate
him on his rights they cannot ask for Caren regarding to her debt but only the
insofar payment made by Alfred.

9. Andy, a minor, is indebted to Ben for the sum of P10, 000.00. While still a
minor, Andy pays Ben the whole amount of P10, 000.00.

a. Is the payment made by Andy to Ben valid? Why?

Yes, even if it is against the stipulation of the article which is payment by one
who does not have the free disposition or capacity to alienate it is not valid,
since it is the latter and Andy have the ability to pay the debt he made is it
considered as valid as he is also the one entered on the contracts.

b. Supposing that at the time of payment, Andy is between the ages of 18 and
21 and Ben spends in good faith the amount paid, may Andy recover what
he paid? Explain.

No, because when a minor like Andy entered in a contracts without his
parents/guardian consent but willingly paid for the fulfillment of his
obligation, he then have no right to recover the payment he made to Ben
who received it in good faith.
10. Is the creditor bound to accept check? Explain.

The creditor may accept the payment if the stipulation permits him to do so.
It is his decision if he will accept or refuse the said check payment.