1. S sold his horse to B for P15,000.00.

No date or consideration was stipulated

for the delivery of the horse. While still in the possession of S, the horse gave

birth to a colt. Who has a right to the colt?

Answer: B has the right to the colt because horse was already sold before

the delivery. The word “sold” suggest that the contract passed the stages of

contract.

2. S offered to sell to B a ring, claiming that the stone on the ring is diamond. S

knows that it is not diamond but ordinary glass. May B asked for the

annulment of the contract? If yes, on what ground?

Yes, B may ask for the annulment of contract only after he prove that the

stone in the ring is not diamond. This is under the Mistake of fact and mistake

of account distinguished.

3. S agreed to deliver to B 500 cavans of rice at P6oo.00 per cavan. S delivered

only 490 cavans deliberately misrepresenting that the delivery consisted of

500 cavans. Can B ask the court to annul the contract on the ground of

fraud? Why or why not?

No, B cannot ask the court to annul the contract on the ground of

fraud since S did not know that the number of cavans that he delivered

was only 490. Instead, B can ask for the remaining 10 cavans that is not

delivered.
4. S sold to B a commercial land for P1,000,000.00. S assured B that it is

certain that in two years time, the land would increase in market value by 50%

or P1,500,000.00. It turned our that the market value of the land even

decreased to about P800,000.00. Is S liable to B for misrepresentation?

Explain.

No, since the misinterpretation is made in good faith and this instance will

not constitute fraud.

5. S and B entered into a contract of sale of a parcel of land. The sale is

embodied only in a private document and not in a public instrument because

it was not acknowledged before a notary public as required by law. Is the

sale valid? Why or why not?

i. The sale is valid since there is a written document which can prove

the contract of sale.

6. S, a minor, sold his land to b. Upon reaching the age of majority, S, with

full knowledge of his rights in the premises, disposed of the greater part of the

proceeds and collected the unpaid balance of the purchase price from B. Can S

still ask for the annulment of the contract? Explain.

No, because the action for annulment of contracts may be instituted

by all who are thereby obliged principally. S cannot ask for the annulment

since he/she already collected the unpaid balance of the purchase price.
7. S orally agreed to sell his piano for P7,000.00 to B who made a partial

payment of P1,000.00. 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 P500.00? Why or why not?

a. Yes, B can enforce the sale. Given that theprice is more than P500 and B

already made a partialpayment to S, this makes the contract fraud and

asstated, it was orally conducted. Proven by Article 1403,which states

that, those who are not within the scope ofStatute of Fraud may not have

a written document. Thismeans that the oral contract between S and B is

validsince the price is above P500 and B already made apartial payment.

8. W agreed to stay in the house of M as the latter’s live-in partner for one year I

consideration of the latter’s promise to pay her P100,000.00 after said period.

W complied with her part of the agreement but M reneged on his promise. Is

W entitled to recover from M? Explain.

No, W cannot entitled to recover from M because the contract is contrary

to morals and good customs and therefore considered void and without

effect.