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    Homework No. 1

    Sapalaran, Ma. Carmela P

    ECE70/A11

    [email protected]

    TITLE I

    CHAPTER 1

    1. X saw at about one (1:00p.m.) in

    te a!ternoon a "il# alone in a

    soppin$ mall. %e "il# wo

    stra&e# !rom ', is moter, was

    in tears an# appeare# er&

    un$r&. ut o! pit&, X too* imto a restaurant to eat !or wi" e

    spent P1+0. ' #i# not $ie er

    "onsent to te $oo# #ee# o! X.

    urtermore, te& were on teir

    wa& ome be!ore te "il# $ot

    lost. -s X entitle# to be

    reimburse# b& ' !or te amount

    o! P1+0.. ile te "ar o! X was par*e# b&

    te roa#si#e, it was bumpe# atte rear b& a eep belon$in$ to '.

    nl& te "ar o! X su!!ere#

    #ama$e. n#er te

    "ir"umstan"es, #oes it !ollow tat

    ' is liable to X !or te #ama$e2

    3. -n te same problem, as X te

    ri$t to as* in#emnit& !rom 4,

    emplo&er o! X, on te $roun#

    tat wen te a""i#ent o""urre#

    X was ten on is wa& to transa"tbusiness wit a "lient o! 42

    5. 6 (#ebtor) borrowe# P10,000

    !rom C ("re#itor). n te #ue

    #ate o! te loan, 6 "ounl# not

    pa& C be"ause e lost to a robber

    te P10,000 inten#e# !or C. in

    a##ition, e su!!ere# !inan"ial

    reerses, an# e was sort o!

    "as een !or is "urrent !amil&s

    nee#s. -s 6 le$all& usti!ie# to

    re!use to pa& C2

    CHAPTER 2

    1. S (seller) sol# to 8 (bu&er) on 9ul& +,

    a orse name# Siler to be #eliere#on 9ul& 0. oweer, on 9ul& 1+, S

    sol# a$ain an# #eliere# te orse to

    %. o as a better ri$t to Siler2

    . S sol# to 8 a spe"i!i" re!ri$erator

    wi" S a$ree# to #elier not later

    tan 9ul& 31, S #i# not #elier te

    re!ri$erator on sai# #ate. -s S $uilt&

    o! le$al #ela&23. S promise# to #elier to 8 a !emale

    orse name# Su;ie on 9ul& 10. Su;ie$ae birt to a "olt on 9ul& +.

    a) at are te obli$ations o! S2b) o as a ri$t to te "olt2

    ") o is te law!ul owner o! Su;ie

    in "ase it was sol# an# #eliere#

    b& S to % on 9ul&

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    Se"tion 1.

    1. 6 (#ebtor) borrowe# P0,000 !rom C

    ("re#itor) pa&able on or be!ore

    Au$ust 30. 8e!ore te arrial o! te

    #ue #ate, C a$ree# to te promise o!8 to pa& C i! 8 wants. Can C insist

    tat 8 pa& not later tan Au$ust 302

    . Suppose in te same problem, 6

    obli$es imsel! to pa& C P10,000

    a!ter C as pai# is obli$ation to %.

    -s te obli$ation ali#2

    3. S (seller) a$ree# to sell 8 (bu&er) a

    spe"i!i" "ar !or P00,000, #elier& o!

    te "ar an# te pa&ment o! te pri"e

    to be ma#e on 9une 1+. Suppose S#eliere# te "ar on 9une 1+ but 8

    !aile# to pa& te pri"e, wat are te

    reme#ies o! S25. S sol# a par"el o! lan# to 8 !or

    P50,000 pa&able in installments o!

    P0,000 a &ear. %e lan# was

    #eliere# to 8 wo obtaine#

    ownersip tereo!. A!ter 8 a# pai#

    P00,000, e "oul# no lon$er

    "ontinuin$ pa&in$ in iew o!!inan"ial reerses but e was willin$

    to pa& te balan"e o! P50,000 i!

    $ien more time. %ereupon, S sue#

    !or res"ission un#er Arti"le 11=1. -!

    &ou were te u#$e, woul# &ou $rant

    res"ission2

    +. 6 (#ebtor) bin#s imsel! to pa& C

    ("re#itor) a sum o! mone&. >ie te

    tree "ases wen te obli$ation o! 6

    is #eman#able at on"e b& C2

    Se"tion .

    1. 6 (#ebtor) borrowe# P10,000 !rom C

    ("re#itor) at 1+? interest per annum

    pa&able on 6e"ember 31. Can 6

    re@uire C to a""ept pa&ment be!ore

    6e"ember 312

    . 6 bin#s imsel! to $ie P10,000 to C

    upon te #eat o! te !ater o! 6. -s

    te obli$ation o! 6 "on#itional or

    one wit a perio#.3. 6 obtaine# a loan !rom C in te

    amount o! P+0,000, pa&able on

    Au$ust 10. As se"urit& !or is #ebt,

    6 mort$a$e# is "ar in !aor o! C.

    %e "ar, oweer, was substantiall&

    #ama$e# witout te !ault o! 6.

    at ri$ts, i! an&, #oes C ae

    un#er te law2 Ma& C #eman#

    pa&ment !rom 6 een be!ore Au$ust

    102

    Se"tion 3.

    1. 6 (#ebtor) borrowe# P10,000 !rom C

    ("re#itor). -t was a$ree# tat 6 "oul#

    pa& P10,000 or #elier is piano on

    Au$ust . n Au$ust 0, 6

    in!orme# C tat te !ormer woul#

    #elier is piano. Can 6 still "an$e

    is perio# "onsi#erin$ tat e was$ien te ri$t o! "oi"e2

    . n#er a "ontra"t, X (obli$or)

    promise# to #elier to ' (obli$ee)

    item one, or item two, or item tree.

    ' was $ien te ri$t o! "oi"e.

    at is te liabilit& o! X in "ase,

    trou$ is !ault:(a) -tem two is lost or #estro&e#

    (b) All te items are lost or

    #estro&e#23. S (seller) sol# is %B set to 8

    (bu&er) wo $ae S te option to

    #elier instea# o! is re!ri$erator. -s

    S liable to 8 in "ase te %B is lost

    trou$ Ss !ault2

    Se"tion 5.

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    1. X, ', an# bin# temseles to pa&

    P30,000. nl& X re"eie# te

    mone& as per a$reement between X,

    ', an# . n te #ue #ate o! te

    obli$ation, as te ri$t to

    #eman# te !ull pa&ment o! P30,000

    !rom alone2

    . X, ', an# promise# to pa&

    soli#aril& P30,000 on or be!ore

    September 10 witout nee# o!

    #eman#. n September =, X pai# te

    wole P30,000 to .

    (a) ow mu" "an X "olle"t !rom '

    an# 2(b) Ma& X "olle"t interest !rom '

    an# 2

    (") Suppose turns out to be

    insolent, ow mu" "an X

    "olle"t !rom '2

    3. A owes 8 an# C, soli#ar& "re#itors,

    te sum o! P0,000:

    (a) Can C "on#one te #ebt witout

    te "onsent o! 82

    (b) Can C assi$n is ri$ts witout

    te "onsent o! 82

    5. A, 8, an# C are soli#aril& liable to 6.or teir !ailure to pa&, 6 !ile# a

    "omplaint in "ourt but onl& a$ainst

    C. as C te ri$t to #eman# tat A

    an# 8 be also in"lu#e# as part&

    #e!en#ants2

    +. A, 8, an# C, "oD owners, sol# a

    printin$ e@uipment to 6. %e&

    soli#aril& boun# temseles to

    #elier te e@uipment on a "ertain

    #ate. %rou$ te !ault o! C, te

    e@uipment was "ompletel&

    #estro&e#. >ie te ri$ts an#

    obli$ations o! te parties.

    Se"tion +.

    1. A an# 8 bin# temseles to pa& C

    teir loan o! P10,000 on a "ertain

    #ate. -s te obli$ation #iisible or

    in#iisible2

    . A, 8, an# C obli$e temseles

    ointl& to #elier to 6 a parti"ular

    orse on a "ertain #ate. %e

    a$reement amon$ A, 8, an# C wi"

    was ma#e *nown to 6 is tat te&

    will "ontribute te amount in bu&in$

    te orse. %e orse was not

    #eliere# on te #ue #ate be"ause o!

    te !ailure o! 8 to $ie is sare o!

    te pur"ase pri"e. State te ri$ts

    an# obli$ations o! te parties.3. 6 !in#s imsel! to pa& is loans o!

    P10,000 in !our e@ual montl&

    installments. -s te obli$ation o! 6

    #iisible or in#iisible2

    Se"tion .

    1. X promises to #elier to ' a spe"i!i"

    orse. %eir "ontra"t "ontains a penal

    "lause tat in "ase o! nonD

    !ul!illment, X sall pa& a penalt& o!P10,000. X wants to ust pa& tat

    penalt& instea# o! #elierin$ te

    orse. as ' te ri$t to re!use to

    a""ept te penalt& in lieu o! te

    orse2

    . -n te same problem, X was able to

    sow tat ' #i# not su!!er an&

    #ama$e b& Xs iolation o! is

    obli$ation. Can ' still en!or"e te

    penalt&23. -n te same problem, suppose X was

    $uilt& o! ne$li$en"e in te

    !ul!illment o! is obli$ation. -s X

    liable !or #ama$es in a##ition to te

    penalt&2

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    CHAPTER 4

    Se"tion 1.

    1. 6 (#ebtor) owes C ("re#itor) P10,000wit > as $uarantor. n te #ue #ate

    o! te obli$ation, %, a tir# person,

    o!!ere# to pa& te obli$ation 6. Can

    C le$all& re!use to a""ept te

    pa&ment2 ow about an o!!er o!

    pa&ment !rom >2

    . M (ma*er) issue# a promissor& note

    !or P10,000 in !aor o! P (pa&ee)

    wo lost te note wi" was !oun#

    b& % wo #eman#s pa&ment !rom M.M #i# not *now tat te note was

    lost b& P. -s M usti!ie# in pa&in$ %2

    3. 6 owes C P10,000 wi" was pai#

    b& % wo #eman#s reimbursement

    !rom 6.(a) en is 6 liable to %2

    (b) en is 6 not liable to %2

    (") en is 6 liable !or less tan

    P10,000 to %2

    (#) Ma& 6 be liable to % !or P1,000i! tat was te amount pai# b&

    im to C2

    5. 6 owes C P10,000. itout te

    *nowle#$e o! C, 6 in $oo# !ait pai#

    to % is obli$ation to C. -s 6

    re@uire# b& law to proe tat te

    pa&ment as been re"eie# b& C in

    or#er to be release# !rom liabilit&2+. 6 owes C P10,000 in pa&ment !or

    wi" C a""epts a "e"* !rom 6. nte $roun# tat a "e"* is not le$al

    ten#er, C later insists tat 6 pa& im

    in "as. -s 6 usti!ie# in ree"tin$ tis

    #eman# o! C2

    Se"tion .

    1. X obli$e# imsel! to #elier to ' a

    spe"i!i" "arabao to ' on 9ul& 31. %e

    "arabao #ie# on 9ul& +. ' as no

    proo! tat X was ne$li$ent. -s X

    liable to '2

    . X obli$es imsel! to #elier a

    spe"i!i" tin$ to ' on a "ertain #ate.

    %e tin$ was lost b& X witout is

    !ault an# be!ore e as in"urre# in

    #ela&. 6oes it mean tat X is alrea#&

    eFempt !rom liabilit&2

    3. Suppose in te pre"e#in$ problem,

    te tin$ was lost trou$ te !ault

    o! , a tir# person. State te e!!e"t

    o! te loss as !ar as X, ', an# are

    "on"erne#.

    Se"tion 3.

    1. 6 (#ebtor) borrowe# mone& !rom C

    ("re#itor) ei#en"e# b& a promissor&

    note si$ne# b& 6.

    (a) at presumption arises i!:1) %e promissor& note is

    oluntaril& $ien b& C to 62

    ) -t is !oun# in te possession

    o! 62(b) en will te presumption o!

    remission arise2

    . Suppose in te same problem, te

    #ebt o! 6, asi#e !rom bein$

    $uarantee# b& >, is se"ure# b& a

    ple#$e o! a "erti!i"ate o! sares o!

    sto"* #eliere# b& 6 to C. wat

    presumption arises i!:(a) te #ebt o! 6 is "on#one# b& C2

    (b) te "erti!i"ate is later !oun# in te

    possession o! 62

    Se"tion 5.

    1. A, 8, an# C are ointl& liable to 6 in

    te amount o! P1+,000.

    Subse@uentl&, 6 assi$ne# is "re#it

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    to C in "onsi#eration !or $oo#s sol#

    b& C to 6. >ie te e!!e"t o! te

    assi$nment.. Assumin$ te obli$ation o! A, 8, an#

    C is soli#ar&, #istin$uis te e!!e"t o!

    te assi$nment !rom te !irst

    problem.

    Se"tion +.

    1. 6 borrowe# P+0,000 as "ara"ter

    loan (no se"urit&) !rom a ban*.

    6espite #eman#s !or pa&ment a!ter

    te loan !ell #ue, 6 #i# not pa& te

    ban*. 6 as a sain$s #eposit o!

    P50,000 wit te ban*. as te ban*te ri$t to appl& te #eposit to te

    pa&ment o! 6s #ebt2

    . 6 owes C P10,000 pa&able on

    Goember 0. C owes 6 P10,000

    pa&able on "tober 0. Can

    "ompensation also ta*e pla"e

    altou$ te #ebts are not pa&able on

    te same #ate2

    3. -llustrate "ompensation wi" "an be

    set up onl& b& one o! te parties.5. A!ter "ontra"tin$ a #ebt in te

    amount o! P10,000 in !aor o! C, 6

    su""ee#e# trou$ !rau#ulent means

    to ma*e C liable to im in te same

    amount. Assumin$ tat bot

    obli$ations are now #ue, ma& te

    two #ebts be "ompensate# a$ainst

    ea" oter2 at is te e!!e"t i! te

    #ebt o! C is later annulle# in "ourt at

    te instan"e o! 62

    Se"tion .

    1. % (tir# person) tells C ("re#itor) tat

    % will pa& te #ebt o! 6 (#ebtor). C

    a$rees. -s 6 release# !rom is

    obli$ation to C2

    . Suppose in te aboe problem, 6

    propose# to C tat % woul#

    substitute 6 as te new #ebtor to

    wi" C a$ree#. -s 6 still liable to C

    in "ase o! insolen"& o! %2

    3. % pai# C te #ebt o! 6 witout

    obe"tion !rom te latter. at are

    te ri$ts o! %H5. -llustrate a miFe# noation.

    .

    Title II

    Chapter 1

    1. A an# 8 entere# into a "ontra"t

    not spe"i!i"all& proi#e# in te Ciil Co#e. -ste "ontra"t ali# an# bin#in$2

    . S (seller) an# 8 (bu&er) entere#

    into a "ontra"t o! sale. -t was a$ree# tat te

    pri"e sall be #etermine# b& %, a tir# person.

    Can S or 8 re!use to be boun# b& %s

    #etermination o! te pri"e i! e #oes not a$ree

    wit te amount tereo!2

    3. 6 owes C P0,000. 8ot are

    ouse painters. -t was a$ree# tat 6 instea# o!

    pa&in$ C, will paint te ouse o! E to wi" E

    eFpresse# is "on!ormit& to C wose seri"e as

    painter was preiousl& "ontra"te# b& E. as 8

    te ri$t to en!or"e te stipulation between C

    an# 62

    5. X ma#e an o!!i"e #es* !or '. Xtol# ' tat te latter ma& pa& wateer amount

    e woul# li*e to pa& !or it. en te #es* was

    !inise# ' o!!ere# to pa& P,000 but X instea#

    #eman#e# P3,000, its !air alue. -s X entitle# to

    P3,0002

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    Chapter 2

    Se"tion 1 Problems

    1. -n a "ontra"t "ontainin$ an

    option perio#, wen is te o!!erer not allowe# to

    wit#raw is o!!er een be!ore a""eptan"e b&

    te o!!eree2 en is te o!!erer allowe# to

    wit#raw is o!!er een a!ter a""eptan"e2

    . S sol# is ouse to 8 beliein$

    tat 8 was C. Can S le$all& wit#raw !rom te

    "ontra"t on te $roun# o! mista*e2

    3. S a$ree# to #elier to 8 +00"aans o! ri"e at P00 per "aan. S #eliere#

    onl& P5=0 "aans #eliberatel& misrepresentin$

    tat te #elier& "onsiste# o! +00 "aans. Can 8

    as* te "ourt to annul te "ontra"t on te $roun#

    o! !rau#2

    5. S sol# to 8 a "ommer"ial lan#

    !or P1,000,000. S assure# 8 tat it is "ertain tat

    in two &ears time, te lan# woul# in"rease in

    mar*et alue b& +0? or P1,+00,000. -t turne#

    out tat te mar*et alue o! te lan# een

    #e"rease# to about P

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    1. S (seller) an# 8 (bu&er) entere#

    into a "ontra"t o! sale o! a par"el o! lan#. %e

    sale is embo#ie# onl& in a priate #o"ument an#

    not in a publi" instrument be"ause it was not

    a"*nowle#$e# be!ore a notar& publi" as re@uire#

    b& law. -s te sale ali#2

    . -n te same eFample, wat

    ri$ts, i! an&, are a"@uire# b& te "ontra"tin$

    parties2

    Chapter 4

    1. S sol# is orse IXJ to 8 un#er

    a written "ontra"t o! sale. at 8 tou$t S was

    sellin$ im is orse I'J. Can S as* !or te

    re!ormation o! te "ontra"t a$ainst te obe"tion

    o! 8 wo is a$reeable to te sale o! orse IXJ2

    . Suppose in te same eFample, S

    was inten#in$ to sell is orse I'.J >ie te

    tree (3) "ases wen e "an as* !or te

    re!ormation o! te "ontra"t.

    Chapter 5

    1. S sol# to 8 is "on#ominium

    unit Iin"lu#in$ all its "ontents.J -n te unit, tere

    is an anti@ue "air belon$in$ to X wi" X

    a$ree# to sell to S. -s te "air to be in"lu#e# in

    te sale o! te unit2

    . X, ar"ite"t, #esi$ne# an#superise# te "onstru"tion o! te ouse o! '.

    %e parties !aile# to a$ree be!orean# te

    pro!essional !ee o! X. ow mu" is ' boun# to

    pa& X2

    3. Suppose in te same problem,

    te pro!essional !ee was a$ree# upon, but it is

    not "lear !rom te written "ontra"t prepare# b&

    X upon te re@uest o! ' weter it soul# be te

    !iFe# amount o! P00,000 or ? o! te "ost o!

    "onstru"tion. ow mu" is ' liable to pa&2

    Chapter 6

    1. 6 owes C P100,000. Sin"e 6

    !ails to pa&, C eFpresse# its willin$ness to a""ept

    te "ar o! 6, wit te same alue, more or less,

    in pa&ment o! is #ebt. 6, in ba# !ait, sol# te

    "ar to X. as C te ri$t to as* !or te res"ission

    o! te sale2

    . , $uar#ian o! M (minor), sol#

    to 8 a propert& o! M wit a mar*et alue o!

    P+0,000 !or onl& P37,000, or a #i!!eren"e o!

    more tan K (P1,+00) o! te alue. -! te

    res"ission o! te sale is #eman#e#, wat possible

    #e!ense un#er te law "an 8 present to aoi#

    res"ission2

    Chapter 7

    1. S, a minor, sol# a propert& to 8.

    Later, te sale is annulle# on te $roun# o! te

    minorit& o! S. -s S boun# to return te pri"e

    re"eie# b& im2

    . -n te same problem, suppose S,

    upon rea"in$ te a$e o! maorit&, #e"i#e# to

    rati!& or respe"t te "ontra"t. as 8 te ri$t to

    re!use te rati!i"ation an# #eman# mutual

    restitution o! te propert& an# te pri"e2

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    3. A$ain, in te same problem,

    suppose te sale was annulle# b& te "ourt, wat

    are te ri$ts o! te parties i! te propert& was

    lost or #estro&e#2

    a. itout te !ault o! 82

    b. %rou$ te !ault o! 82

    Chapter

    1. -, an insane person, entere# into

    "ontra"t wit M, a minor. at is te e!!e"t o!

    rati!i"ation

    a. 8& eiter an#

    b. 8& bot, a!ter be"omin$

    in"apa"itate#2

    . 6 (#ebtor) owes C ("re#itor)

    P10,000. % (tir# person) orall& promise# to

    assume te obli$ation o! 6. Can te promise o!

    % be proe# b& te testimon& o! a witness wo

    was present wen % ma#e te same2

    3. S orall& a$ree# to sell is piano

    !or P7,000 to 8 wo ma#e a partial pa&ment o!

    P1,000. Later, S #enie# tere was su" a sale.

    Can 8 en!or"e te sale "onsi#erin$ tat te

    "ontra"t was oral an# te pri"e was more tan

    P+002

    Chapter !

    1. S (seller) an# 8 (bu&er) entere#

    an absolutel& simulate# "ontra"t o! sale o! a

    par"el o! lan#. S brou$t a"tion in "ourt to

    re"oer te lan# onl& a!ter 0 &ears. -s it "orre"t

    !or te "ourt to #ismiss te a"tion be"ause o! te

    lon$ lapse o! time2

    . -n "onsi#eration o! P10,000

    $ien b& X to ', te latter a$ree# to burn te

    ouse o! . Later, X tol# ' to !or$et te

    a$reement an# to return te mone&. ' re!use#. -s

    X entitle# to re"oer !rom '2

    3. (woman) a$ree# to sta& in

    te ouse o! M (man) as te latters lieDin

    partner !or one &ear in "onsi#eration o! telatters promise to pa& er P100,000 a!ter sai#

    perio#. "ompile# wit er part o! te

    a$reement but M rene$e# on is promise. -s

    entitle# to re"oer !rom M2

    Title III

    1. C ("re#itor) sue# 6 (#ebtor) !or

    nonpa&ment o! te latters obli$ation. 6 won te

    "ase on a te"ni"alit& (i.e., not on te merits).

    Geerteless, wen C as*e# pa&ment a$ain, 6

    pai# im. Gow, 6 #eman#s te return o! wat e

    as pai# "laimin$, e soul# not ae pai# C

    sin"e e a# no more obli$ation to C un#er te

    law. 6e"i#e.

    . M, a minor, bou$t a bi"&"le !or

    P,000 !rom G, wo is not a minor. n#er te

    law, te "ontra"t is oi#able be"ause M is

    in"apa"itate# to $ie "onsent be"ause o! is

    minorit&. >ie te situation b& reason o! wi"

    M "annot re"oer te P,000 !rom G.