Larru oEt $alesSchool Year 2013-?014, First Semester

Aris L. GulapaSection 2-C.

II. Essay. Please explain ysur answer with legal basis. 5O points(total).

1. On July 25,2A13,A and B entei''ed intct a notarizc*tl contract of sale irlr whichA agreed to sell to B A's house *''rrX ir:ii. lt.'cnfed at +t25 Flamingo St., CorinthianGardens (worth PhP20,000,000) i'*r *niy PhP1,000,00CJ. B paid the purchase price,

and lived in the house and enjoyed it" preacefr.rlly. On July 24, 20L4, A wrote B

demanding that B return tlre house to A claiming that this is an equitable mortgage.

a. [s A correct? 5 Points.b. What ctlntract is involved here? 5 points.

Z. On Janua ry L, 2A73, M tolcl N that N can sell M's gated land for at leastphp10,000,000 p'ayable on dernancl" hi t-'ntered into a notarized deed of etbsolute

sale witn ci in *niih N sold M's land t* 0 for and on belralf of M for PhP9,000,000.

N gave the phpg,000,000 to M, which M received arrd deposited in his bank

account. A few days after, another buyer, P, approached M and offered to purchase

the land for phplo,ooo,ooo payable in'cash upon execution of the contract of sale.

rrl igr""O ind entered into q notarized contract of sale with P on those terms and

simrjltaneously delivered the keys to the gate of tlre land and tlr.e_gertificate of title

over the lancl to p. M approached 0 and tried to return the PhP9,000'000 but O

refused.

o files an action for specific performance against t'l and N.

a. Is the deed of absolute seie enf'orceable against M? 1.0. points.

b. O claims that N need not be the owner of the subject matter of acontract of sale. will o's position prosper in this case? 5 point:s'

3. On June L, 20L3, X sent Y a written offer to sell the Toyota sequicla (with

plate number XXX 111) that X owns for PhP5,000,000' On June 2, Y replied to X in

writing acceptinj tne-oner and adJed that in'order to pay the purchase price, Y will

obtain a letter of credit from gank Z. On lune 3, 2013, Y applied for a rletter of

credit from Bank Z, which was refuserl by Bank Z. On June 4, 2AL3, X went to Y's

house and delivered the Toyota Sequioa and demanded that Y pay him the

PhP5,000,000. Y refused to pay. Is Y',s refusal correct? 10 points'

4, On FebruarY 1, 2013, A Corporation entered into a lease contract with B

cbrnprnv roi a riv{-year lease of Marimar Building, which A Corporation owns'

Section 10 of the lease contract provides:

If the TESSOR shauld desire to sell fhe leaser/ premises, the LESSEE shall be given3)-days exclusive optian to purchase the sari?e for Phfi10,000,A00. In c:ase theleased premises is sold to a third party,.fhe {.f55OR sha// be obliged to stip,,ulate inthe Deed of Sale thereof that the purchaser sh,tll recogni;:e this lease and be boundby all the terms and conditions thereof.

On July 27, 2013, A Corporation approachec! X and told him that A Corporationwould give X the exclusive option to purchase the Marimar Building forPhP10,0C0,000 within a period of 30 days fronr July 27, i'-A73 if X would give him adiamond ring. X agreed and promised ti: give ir diamond ring to A Corporation.

On July 28,2013, X appn:ar:lierl A Corgroraticn to purchase the Marimar Buildingunder the July 27, zALi terms.

a. B Company objects to the sale to X trer:ause there was no considertltion forX's option. Is B Company correct? 5 pat'nts.

b. A Corporation refuses because the option is not enforceable. 5 point:;.

c. Who has a lretter right? B Company or )l? 5 points.