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1. Dyosa and Adonis entered into a contract of loan in March 15, 2002 where
Dyosa borrowed from Adonis the amount of US$25,000.00 when the exchange
rate is P55.00 to US$1.00 payable in Philippine Peso on or before December 31,
2007, when the exchange rate is P31.00 to US$1.00. Kulas executed a surety to
secure the loan on December 20, 2007. The Bangko Sentral ng Pilipinas
declared that there is an unusual deflation in the value of the peso. On January
25, 2008, Kulas tendered to Adonis the amount of P820,000.00 plus interest in
the form of cashiers check. Adonis refused to accept such payment because of
the following reasons
o The amount to be paid should be P1,375,000.00, excluding interest
o The payment should be in cash
o He is not compelled to accept payment from Kulas because he is not the
debtor
Decide with reasons(20 pts)
2. Magulang bought 2 diamond earrings from Masiba valued at P200,000.00 which
he can sell at 20% margin. Since they are good friends it was agreed that
Magulang will pay whenever his means permit him otherwise he has to return
the same. Magulang was able to sell said pieces of jewelry in two (2) equal
installments on July 25, 2008. In the evening of August 2, 2008, Magulang
offered Masiba P100,000.00, the only money he had collected, but Masiba
refused to accept the payment. While walking home from the residence of
Magulang, two men, armed with bread knives, snatched the purse and ran away.
On the following week, magulang offered Masiba P80,000.00, the 2 nd installment
less his commission. However Masiba refused the payment also because its not
the full payment . Thereafter Magulang met Maluho, Masibas wife, to whom he
gave the P80,000.00 with the request that she turn the money over to Masiba,
Maluho did not turn over said money but instead used it to buy plane tickets to
Nigeria for her and Masiba so they can visit Maluhos parents. Following a
quarrel, Masiba made a demand upon Magulang to pay the amount of
P180,000.00 or return the pieces of jewelry. Magulang interposed the following
defenses:
o That the first P100,000.00 was lost due to fortuitous event
o The P80,000.00 was paid already
o He cannot be faulted because it is Masiba who refused to accept his
payment, and that

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o His obligation to pay is not yet due because no period has been agreed
upon
Decide whether the above defenses are tenable (25 points)
3. Tango, Tinga, Tenga are solidary
debtors under a loan obligation of
P300,000.00 which has fallen due. Taptap, the creditor has condoned Tengas
entire share in the debt. Since Tinga has become insolvent, Taptap makes a
demand on Tango to pay the debt. How much, if any, Tango may be compelled
to pay and to what extent, if at all, can Tenga be compelled by Tango to
contribute to such payment? (10pts)
4. Guapo delivered his car valued at P300,000.00 to Pogi to be sold on 5%
commission upon agreement that if the car is unsold, Pogi shall return the car to
Guapo. During the onslaught of typhoon Milenyo, Pogi uses the car to go to a
hotel. While the car is parked by the side street near Manila Motel, the car was
carnapped. Because of poor visibility and raging floods, the carnappers hit a tree
and leaves the car a total wreck. Pogi claims fortuitous event to absolve him from
any obligation. Discuss (15pts)
(a) May the debtor withdraw the thing consigned? Discuss (7.5pts)
(b) When does loss or destruction of the thing result to extinguishment of the
obligation? (7.5 pts)
5. Bob, the builder entered into a crontract with Mr. Bean to build the latters house
for P1,000.00. The contract provides that if Mr. Bean fails to pay the amount on
December 25, 2006, he shall pay a surcharge of 10% for every day of default
until full settlement of his oblgation. Mr. Bean did not pay on time. Bob the builder
went to Court to recover the amount plus the penalties and damages. The
Kangaroo Court decided in favor of Bob, awarded surcharges and additional 6%
per annum as penalty. Mr. Bean asks you (a) if the Kangaroo Court is correct
and (b) what are the three (3) purpose of a penalty clause (15 points)
6. Dino sued Ben for damages because the latter had failed to deliver the antique
Mercedes benz car Dino purchased from Ben - which was - by agreement - due
for delivery on Dec. 31, 1993. Ben, in his answer to Dinos complaint, said Dinos
claim has no basis for the suit, because as the car was being driven to be
delivered to Dino on January 1, 1994, a reckless truck driver had rammed into
the Mercedes Benz. The trial court dismissed Dinos complaint, saying Bens
obligation had indeed been extinguished by force majeure. Is the trial court
correct?

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7. In 1960, the Bureau of Lands issued a Homestead patent to Elias Palos. Under
the Public Land Law, any sale or conveyance made involving said Homestead is
void. 3 years later, Elias Palos sold the homestead to Enrico Fernando. Elias
Palos died on March 15, 1990, and his heirs filed inaction to recover the
homestead from Enrico Fernando on the ground that its sale by their father to the
latter is void under Section 188 of the Public Land Law, Enrico Fernando,
contended, however, that the heirs of Elias Palos cannot recover the homestead
from him anymore because: a) their action has already prescribed, b) Elias Palos
was in pari deluxe, and, c) the heirs are guilty of laches. Decide with Reasons.
8. Totoy Bato a Citizen and a resident of New Jersey, USA, under whose law he
was still a minor, being only 20 years of age. He was hired by the ZTE
corporation of Manila to serve for two years as its Chief computer programmer.
However, after serving only 1 year, he resigned from ZTE company, because he
was enticed by GMA/FG Corp. by offering more advantageous terms. ZTE
Corporation sued him and GMA/FG Corp in Manila for damages arising from the
breach of his contract of employment. He interposed his minority as a defence
and asked for annulment of the contract on the ground ZTE corporation disputed
this by alleging that since the contract was executed in the Philippines under
whose law the age of majority is 18 years, under he was no longer a minor at the
time of the perfection of the contract.
o a. will the suit against Totoy Bato prosper?
o b. will the suit against GMA/FG Corp prosper and what would be the basis
of its liability?
9. Laida and Miggy entered into a lease contract over Monte Building on Feb 1,
2005 where Miggy is expressly granted a right of first refusal should the lessor,
Laida, decide to sell both the land and building. However, on March 30, 2007,
Laida sold the property to Mackoy who knew about the lease and in fact agreed
to it. Thereafter, after being informed of the new lessor, Miggy made a de mand
and subsequently filed an action against both lessor-seller, Laida and the buyer
Mackoy, (a) to rescind the sale and (b) to compel the specific performance of his
right of first refusal in the sense that the lessor should be ordered to execute a
deed of absolute sale in favor of the lessee at the same price. The defendants
contended that the plaintiff can neither ask rescission of the sale nor compel
specific performance of a right of first refusal. Decide the case.
10. In two separate documents signed by him, Miguel Tonto "obligated himself" each
to Glow Labandera and to Perlie Estrada, thus - "To Glow, my true love, I
obligate myself to give you my one and only hose when I feel like it."

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"To perlie, my true sweetheart, I obligate myself to pay you the P500,000.00 owe
you when I feel like it."
Months passed but Miguel never bothered to make good his promises. Glow and
Perlie came to consult on you whether or not they could recover on the basis of the
foregoing settings. What your legal advice be to Glow? To Perlie?
11. Suppose that under an obligation imposed by a final judgement, the liability of the
judgment debtor is to pay the amount of P6,000.00 but both the judgement
debtor and the judgement creditor subsequently entered into a contract reducing
the liability od the former to only P4,000, is there an implied novation which will
have the effect of extinguishing the judgement obligation and creating a modified
obligatory relation? Reasons.
o How is a civil obligation distinguished from a natural obligation? Give an
exampe of natural obligation.
12. Beauty La Fea offered to sell her BMW to Regina Bilog for P600,000.00. After
inspecting the car, Regina Bilog offered to buy it for P500,000. This offer was
accepted by Beauty La Fea. The next day, Beauty offered to deliver the car, but
Regina being short of funds, secured postponement of the delivery, promising to
pay the price upon arrival of the steamer, Ogie da Pogi. The steamer however
never arrived because it was wrecked by a typhoon and sank somewhere off the
coast of Samar.
o Can Beauty compel Regina to pay the purchase price? Why?
o Is the promise to pay made by Regina conditional or with a term? Why?
13. Ian and Asha met on the plane to Cebu. Ian offered Asha to stay in his resort in
Bohol. Asha was so impressed with the place she hinted a desire to lease the
same. On March 5, 2007, Ian emailed Asha offering to lease the resort. Asha
opened her email on March 6, 2007 but only sent the telegram of acceptance on
March 8, 2007. On March 7, Ian had a change of the heart and withdrew his offer.
Asha read the email right after sending the telegram to Ian. Was the contract
perfected?
14. Ismael is married to Marta. in 1999, Ismael met Tisay a 17yr old GRO and went
crazy rabid with desire. Ismael donated to Tisay a house and lot which he and
Marta previously occupied with their 3 children. The donation was, ofcourse,
subject to the condition that Tisay becomes Ismael's mistress. Tisay accepted
the donation but demanded to have a condominium unit as their love nest. In

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2006, Ismael died of a heart attack. Marta and her 3 children went back to the
house donated to Tisay and decided to live there. Tisay goes to you for advice.