APPLICATIONS/PROBLEMS: (1156-1249)

1. Under a building contract, Engr. So agreed to construct the house of Mr. Rey for 6 months. On the other
hand, Mr. Rey agreed to pay Engr. So P3M after the construction is finished. Point out the elements of the
obligation in this legal scenario.
2. Christian and Carina entered into an agreement. For a consideration of P200,000.00 to be given by
Carina to him, Christian agreed to attend mass for four consecutive Sundays. Is this obligation legally
enforceable?
3. On November 15, 2014, Derek entered into an agreement with Caitlyn. Among other things, the parties
agreed that: (a) Caitlyn will lend P100,000.00 to Derek who promises to pay the loan on January 15, 2015;
and, (b) In case of non-payment, Derek will render free service as a servant to Caitlyn until such time that
Derek is able to raise the money with which to pay his loan to Caitlyn. Is this agreement legally enforceable?
4. Don, a merchant-farmer, was the owner of a ten-hectare land planted to lanzones. On April 1, 2015, Don
left for a pleasure trip to the U.S. While Don was on vacation in the U.S., typhoon Babing devastated the
entire Philippines including the land owned by Don. Before the typhoon, however, reached the Philippine area
of responsibility, Conan, a conscientious neighbour and friend of Don, employed six (6) farmers to harvest the
lanzones planted on the land of Don. As a result, Conan incurred expenses amounting to P60,000.00. The
employment of the farmers and the harvest of the lanzones from the land of Don was undertaken by Conan
without the approval of Don as the latter was still in the U.S. Upon the arrival of Don in the Philippines from
his trip, may he be compelled by Conan to refund the P60,000.00 expenses incurred?
5. You went to the bank and let the teller change your P1,000.00 bill. Because of the negligence of the teller,
she erroneously gave you 11 pieces of P100 bills. Can you be compelled to return the excess considering the
negligence of the banks teller?
6. While playing baseball with his friends, Jay broke the glass window of Kay, his neighbour. The breakage
was not made on purpose. It was only an accident. Can Kay hold Jay liable for the damage?
7. Juan ordered ten-year old Pedro to climb a high and slippery santol tree, and promised to give the boy 2
kilos of the santol he will be able to pick. While climbing the tree, however, Pedros foot slipped. As a result,
Pedro fell from the tree to the ground and died instantaneously. Will Juan be liable in damages for the death
of Pedro?
8. Liza is the owner of a 200 square-meter lot sited in Makati. On January 15, 2015, Lito and Liza entered into a
lease contract covering the said lot. The term of the lease was 2 years, or until January 14, 2017, and the monthly
rental agreed upon by the parties was P100,000. On June 15, 2015, Liza sold her Makati lot to Rene and
promised to deliver the lot to Rene on November 15, 2015. On November 15, 2015, however, Liza failed to deliver
the lot and instead made delivery only on December 15, 2015. As the new owner, Rene now claims from Liza
Litos rental payments starting June 15, 2015. Is Renes demand well-founded?
Clue question: When does the obligation to deliver arise? (Art. 1164)
9. For a consideration of P2M, Mike promised to deliver to Joe, on or before July 15, 2015, his BMW with plate
No. HRL-512 as well as a 2015 24-inch Sony Wega television set. Unfortunately, on July 10, 2015, an unusual bolt
of lightning stroke onto the roof of Mikes house and started fire. The fire completely gutted down Mikes property.
As a result, the BMW and the TV set were both reduced to ashes. Has the obligation of Mike to Joe been
completely extinguished?

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 Clue question: If the thing to be delivered is generic, and the same is lost or destroyed, is the obligation to
deliver extinguished? (Art. 1263)
10. On March 15, 2015, Engr. Fabi entered into a building contract with Mr. Oni. It was agreed that in six months,
Engr. Fabi will finish the construction of a one-kilometer dam in Bacolor, Pampanga to protect the property of Mr.
Oni from damage caused by the lahar mud flow consequent of the Mount Pinatubo eruption. It was also stipulated
that the height of the dam from the basement shall be four meters, and crushed stone measuring two inches in
diameter shall be used. Later, Mr. Oni found out that Engr. Fabi used 1/2-inch diameter of crushed stone for the
dam. What are the remedies of Mr. Oni?
Clue: Creditors right in a positive personal obligation (Art. 1167)
11. Budoy and Intoy are the owners of two adjoining pieces of land in Allen, Samar. On April 10, 2015, Budoy and
Intoy entered into an agreement. In the agreement, Intoy obliged himself not to construct any structure, whether
temporary or permanent, on his (Intoys) land for five years because Budoy will use it as his garage for five years.
As consideration for the promise, Budoy paid Intoy the amount of P200,000.00. On March 20, 2015, however,
Intoy constructed a semi- structure to accommodate five live-in employees from his carinderia. What is the liability
of Intoy?
Clue: Creditors right in a negative personal obligation (Art. 1168)
12. On July 2, 2015, Hiss agreed to sell his original set of Harry Potter DVDs to Moo, and promised to deliver the
same to Moos house on July 4, 2015. On July 8, 2015, Moo demanded from Hiss delivery of the DVDs. Hiss,
however, informed Moo that on the night of July 6, 2015 a burglar entered their house and robbed them of personal
effects amounting to P300,000.00 which were never recovered. Hiss original set of Harry Potter DVDs were
among the things stolen.
(a) What is the liability of Hiss?
(b) If, on July 4, 2015, Moo had asked his brother-lawyer to write a demand letter addressed to Hiss insisting on the
delivery of the DVD set, would your answer to the preceding question be the same?
Clue: Correlate Art. 1165, par. 3 with Art. 1169, par. 1.
13. John and Bea were engaged to be married on June 6, 2015. For the wedding cake, they contracted GoldiCooks to bake a five-layered chocolate cake with walnut, which was Beas favourite. On the day of the wedding,
and up to the time when the newly weds were about to share their first slice of cake as husband and wife, no cake
arrived. So, they had to make do with the leche flan the caterer had prepared for the wedding. When John and
Bea arrived from their honeymoon, they filed an action for damages against Goldi-Cooks who now denies liability
on the ground that the spouses never made any demand on Goldi-Cooks for the delivery of the wedding cake. Is
Goldi-Cooks liable for damages under the facts of this case?
Clue: Art. 1169, par. 2.
14. On December 31, 2013, Brad advanced P100,000.00 from Angie and promised to pay the amount on
December 31, 2014 at 10% per annum interest. In case of default, Brad also obliged himself to pay to Angie
additional interest (as penalty for the delay) computed at 5% per month. On December 31, 2014, Brad failed to
pay Angie his loan. For the next six months, Angie did not hear anything from Brad. On June 30, 2015, Angie filed
a case in court to recover the amount of P140,000.00, computed as follows:
Principal amount

P100,000.00

10% agreed annual interest

P 10,000.00

5% agreed penalty interest for delay

P 30,000.00
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Total liability as of 30 June 2015

P140,000.00

Under the factual circumstances obtaining, does the computation of Angie on Brads liability for interest on account of
default have legal basis?
Clue: Art. 1169, par. 1.
15. Dean is a businessman engaged in the buy and sell of second hand cars. He owns a 500 square-meter lot in
Manila valued at P5M and a Mercedez Benz car worth P1.5M. On January 1, 2013, Deans best friend Techie
bought a 2006 Nissan Patrol car from Dean for P1M. Dean agreed to extend payment of the car to December 15,
2013. In the early part of 2014, due to financial reverses, Dean was able to borrow money from a wealthy friend,
James, who loaned him the amount of P10M without interest and payable on October 31, 2014. As of November
10, 2014, however, Dean, despite repeated demands from James since the obligation became due, has not been
able to settle his obligation. Worst, James came to know from another business associate that, as of October 5,
2014, Dean had already sold his P5M Manila property which was under renovation under the supervision of its new
owner Gaby. What, under the factual circumstances of this case, are the successive rights of James? Clue:
Art. 1177.
16. On July 31, 2014, Procopio sold to Cordapio his Nikon D700 camera for P100,000.00. Upon delivery of the
camera on the same day, Cordapio paid P20,000.00. as downpayment. Procopio agreed to accept payment on
the balance in instalments, as follows :
September 30, 2014

P10,000.00

November 30, 2014

P15,000.00

January 31, 2015

P15,000.00

March 31, 2015

P20,000.00

May 30, 2015

P20,000.00

Balance Payable

P80,000.00

It was also agreed by the parties that if any instalment was not paid by Cordapio on time, the remainder of the
unpaid instalments would automatically become due and demandable, and will be charged a 5% monthly interest until
completely paid. On January 31, 2015, Cordapio did not remit the instalment thus due to Procopio. Until the end of
March, 2015, Procopio did not hear from Cordapio. On April 15, 2015, Procopio filed an action for collection against
Cordapio demanding payment of the entire balance due from January 31, 2015 in the amount of P55,000.00. From
what time should the 5% interest for damages start to be computed on the total amount due?
! Clue: Art. 1169, par. 1. (See Note No. 6 on DELAY)
17. At around 10:00 in the evening, you are driving along Roxas Boulevard within the area of Buendia. Your family
is in the car with you. The highway is normally free from pedestrians who are required by local ordinances to cross
the boulevard using the designated overpass. Suddenly, from out of nowhere, a man in his mid-30s crosses the
road. The man was wearing a black shirt which made him even more invisible to moving vehicles. Before you
realize it, he was already right in front of the car a few feet away, and it became impossible to steer clear of the
man after a rapid full step on the brakes. As a result, the man suffered serious injuries. Will you be liable for
damages to the injured man?
Clue: Art. 2179. (See Note 2[e], Grounds for Damages)
18. On January 1, 2004, Jun signed a promissory note for P5M in favor of Sylvia. In the said note, Jun obliged himself
to pay Sylvia his debt in two (2) equal installments: P2.5M to be paid on May 1, 2005, and the balance of P2.5M to be

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paid on December 1, 2005. Sylvia is given by law a prescriptive period of 10 years to collect on her credit. If Sylvia files
an action for collection against Jun under this obligation on July 20, 2015, how much can Sylvia collect from Jun?
19. On February 15, 2015, Jay, Joe, and Jess promised to deliver to Jing and Josie a BMW car, with plate number
ABC-123, worth P6M. Two weeks before the delivery date set in their contract, Joe drove the BMW car and slammed it
into a ten-wheeler truck while overspeeding along a barangay road in Manila. Because of the non-delivery of the car,
Jing and Josie suffered business loses amounting to P300,000.00. On maturity date, if Jing goes to Jess demanding
performance under this obligation, how much can Jess be compelled to pay?
20. In the preceding problem, assume that the object which the debtors promised to deliver to the creditors was a 2015
red Toyota Land Cruiser car worth P6M. Assume also that the same factual circumstances prevailed. Will your answer
to the preceding question still be the same?
21. D1 and D2 are jointly liable to deliver to C (owner of a laundromat) a Whirlpool Dryer with serial no. 44714 valued at
P25,000.00. The delivery date is set on December 5, 2014.
What is the effect of the debtors non-compliance with their joint indivisible obligation? (innocent debtor
and guilty debtor).
22. Let us apply the rules in letter (c) to our illustrative example in letter (a). Let us assume that the dryer which D1 &
D2 promised was sent to the Whirlpool service center because it needed replacement of major parts to become
functional again. The repair cost amounted to P10,000.00. D2 was able to come up with his proportionate part in the
repair cost amounting to P5,000.00. D1, however, lost his P5,000.00 in a cockfight bet. As a result, the dryer could not
be delivered to C on December 5, 2014. Because of the non-delivery, C lost a lot of orders from his laundromat
customers costing P8,500.00. What are now the liabilities of D1 and D2 to C?
I. Should D1 become insolvent, what is the liability of D2?
II. Let us assume that in the preceding problem, instead of D1 and D2s obligation being joint and indivisible,
the same is solidary and indivisible. What would be the effect on the debtors respective liabilities?
23. Present the effects of joint and solidary obligations in tabulated form.
a. D1 and D2 are joint debtors of C for P20,000.00.
Joint Debtors

Debtors duty

Creditors claim

Individual Creditor

D1

D2
Total liability

Total claim

b. D1 is a debtor of C1 and C2, joint creditors, for P20,000.00.

Individual
Debtor

Debtors duty

Creditors claim

Joint Creditors
C1

C2

Total liability

Total claim

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c. D1 and D2 are joint debtors of C1 and C2, also joint creditors, for P20,000.00.
Joint Debtors

Debtors duty

Creditors claim

Joint Creditors
C1

D1

C2
C1

D2

C2

Total liability

Total claim

24. How much can each other demand:

I. D1 and D2 are joint debtors of C1 and C2, solidary creditors, for P20,000.00.
II. D1 and D2 are solidary debtors of C1 and C2, joint creditors, for P20,000.00.
III. D1 and D2 are solidary debtors of C1 and C2, solidary creditors, for P20,000.00.
25. On January 1, 2015, D1 and D2, solidary debtors, borrowed money from C in the amount of P500,000.00 due on or
before June 30, 2015. On January 15, 2015, D2 paid the entire debt of P500,000.00 to C. On February 14, 2015, C
remitted the obligation in favor of D1. Can D2, after having paid for the entire debt, ask for reimbursement from D1 for
the latters proportionate share in the obligation considering that C had remitted the obligation in favor of D1?
26. On January 1, 2015, D1, D2 & D3, solidary debtors, borrowed money from C in the amount of P1M due on or before
June 30, 2015. The proportionate shares in the debt of the solidary debtors are as follows : D1 P200,000.00; D2
P300,000.00; and, D3 P500,000.00. On January 15, 2015, C remitted the share of D3. On February 14, 2015, D1
paid the entire debt of P1M to C. On March 15, 2015, D2 became insolvent.
I.
Can D1, after having paid for the entire debt, ask for reimbursement from D3 for the latters proportionate
share in the obligation?
II. Since D2 has now become insolvent and is unable to reimburse D3 for his (D2) proportionate share in the
amount of P300,000.00, is D3 (whose proportionate share was already earlier remitted by C) obliged to
contribute to the share of D2?
27. D1, D2 and D3 are solidary debtors of C for P300,000.00 under the following terms and period :
D1 P50,000.00, due on June 30, 2014
D2 P150,000.00, due on December 31, 2014
D3 P100,000.00, due on June 30, 2015
On June 30, 2014, C made a demand upon D1 to pay the entire obligation but the latter paid only P50,000.00. Subsequently,
because of D1s refusal to pay the balance, C filed a case against D1 for collection of the amount. Will Cs action prosper?
28. D1, D2 and D3 solidarily promised to deliver to C, on December 15, 2014, a 2013 Toyota Hi-Luxe, with Plate No.
ABC-123, and which was worth P2.4M. On November 30, 2014, the pick-up figured in an accident while being driven by
D1 under the influence of alcohol. Later, C makes a demand upon D2. Should D2 be liable for the price of the pick-up as
well as damages or interest?
29. Jojo and Jaja sold 1,000 sacks of rice to Kiko and Kaka for P1.5M. On Kikos request and after paying the price therefor,
Jojo and Jaja delivered to him the 1,000 sacks of rice. Later, Kiko resold the rice for P2M and did not turn over any part of
it or its price to Kaka. Kaka now demands for the delivery of the rice. May Kaka compel Jojo and Jaja to deliver what he
bought? If so, how much will Jojo and Jaja be liable to Kaka under the factual circumstances of the case?

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30.On February 15, 2014, Lyn and Rose, in a solidary obligation, bound themselves to pay P1.5M to Jona, Larry, and Don
subject to the following terms and conditions: Jonas share will be due on June 1, 2014; Larry will get his share only if he
passes the 2014 Bar Examinations; and Don, a fourth year LM student, will get his share only after he graduates from
college in 2015.
(a) On March 25, 2015, shortly before deliberation on the status of graduates, Don went to Rose and sought to
recover the entire P1.5 M. Don alleged that since Lyn and Rose were solidarily debtors, anyone of them may be made
to answer for the entire P1.5M obligation. May Don recover from Lyn? If so, how much?
(b) On April 15, 2015, the results of the Bar Exams came out, on the same day the LM graduation rites took place.
Both Larry and Don made it. Upon hearing the news, Jona, who was Larrys sister, immediately went to Lyn and
sought to recover under the debtors obligation. How much can Jona recover from Lyn?
31. Jerome, Sam and Nikki promised to give a Toyota Altis car worth P1.5M in favor of Sky, Lei, Dane and Zier.
Jerome became insolvent, so the other debtors could not purchase the car to be given to the creditors. Later, Dane
and Zier informed the debtors that they were giving up and waiving their rights under the obligation. In other words,
Dane and Zier were no longer interested in the obligation. How much can the remaining creditors Sky and Lei each
collect from each of the debtors?
32. Benjie obliged to give solidary creditors Connie and Alejo P100,000.00 on June 30, 2015. On May 15, 2015,
Connie assigned his right to collect under the obligation to Baby. Connie informed Benjie about the assignment. On
June 30, 2015, as promised, Benjie paid the entire P100,000.00 obligation to Baby. On July 1, 2015, alleging that he
has as yet not received any payment, Alejo demanded from Benjie his proportionate share in the credit in the amount
of P50,000.00. Does Benjie still have an obligation to Alejo?
33. Teotimo and Vicente, solidary debtors, promised to pay Lydio, Ison, and Sefa, solidary creditors, the amount of
P300,000.00 on December 31, 2014. On January 15, 2015, the lawyer of Sefa sent a demand letter to Teotimo
demanding for payment of the entire P300,000.00. However, Vicente, who did not know of the demand, had paid
Lydio the entire P300,000.00 on the very same day the demand was made. Is the debtors obligation now
extinguished? Assuming that Lydio does not remit to Sefa her proportionate share in the entire credit in the amount of
P100,000.00, can Sefa still collect the said amount from Teotimo?
34. Maria and Clara are solidary debtors of Juan, Pedro and Jose, solidary creditors, for the amount of P600,000.00.
Juan subsequently fell in love with Maria. On the night he proposed marriage, Juan told Maria to forget about the
whole obligation because Juan was waiving the entire P600,000.00 obligation. Maria accepted Juans proposal, and
immediately went to Clara asking reimbursement for her (Claras) proportionate share in the obligation. Is Clara
obliged to reimburse Maria, considering that the entire debt would not have been remitted by Juan had it not been for
Maria?
35. In the preceding question in No. 6, what will become of the proportionate shares of Pedro and Jose assuming
that the obligation is now totally extinguished? Can they still recover their respective shares in the credit under the
factual circumstances?
36. Paul, Ken, Jake and Mark are solidary debtors of Anne for P400,000.00. After Mark paid the entire P400,000.00
to Anne, he went to Paul asking for reimbursement in the amount of P300,000.00. Mark contends that since their
obligation is solidary, after he paid the entire debt to Anne, the other solidary debtors will now also be solidary obligors
of Mark with respect to the remaining balance of the debt in the amount of P300,000.00, after subtracting Marks
proportionate share of P100,000.00. Do you agree with Marks contention? In other words, can Mark ask for
reimbursement from Paul in the amount of P300,000.00?
37. On January 15, 2014, Donna, Diana and Dora signed a promissory note which read as follows : For value
received, we promise solidarily to pay Caloy and Carmel the sum of P600,000.00 on or before June 30, 2015. On
December 25, 2014, Carmel fell in love with Diana, and remitted her share in the obligation. On January 28, 2015,
Donna became insolvent.
a. On July 1, 2015, Caloy went to the house of Diana and wanted to recover the entire P600,000.00 only from
Diana. Can Caloy do so? How much can Caloy hold Diana liable under the factual circumstances?

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b. After Donna had become insolvent, on February 5, 2015, Dora paid the entire P600,000.00 obligation to
Caloy who acknowledged receipt of the entire amount. After paying the said amount, Dora now seeks
reimbursement from Diana. How much is Dianas liability to Dora?
c. Caloy and Carmel had an altercation on the occasion of one of their drinking sprees. Thereafter, or on June
30, 2015, to make sure that Carmel would not be able to do anything to cheat Caloy out of his share in the
obligation, Caloy instructed his lawyer to send a demand letter to Diana demanding from her payment of
Caloys share in the credit in the amount of P300,000.00. Does Caloys act have legal basis? Can Diana
be compelled to pay Caloy the amount of P300,000.00 despite the remission earlier granted by Carmel in
her favor?
38. Cedric and Matt are solidarily obliged to give Kat a 2014 Ford Explorer pick-up worth P1M on December 15,
2014. On November 30, 2014, Kat was able to close a deal with Jojo who was willing to pay for P1.5M for the pick-up
upon delivery. Cedric drove the pick-up and figured in an accident after he beat the red light along the intersection of
Roxas Boulevard and Pedro Gil Street. Cedric miraculously survived the crash, but the car was completely wrecked
beyond recognition. While Cedric was recovering in the hospital, Kat went to Matt and demanded from him the
amount of P1.5M. Matt, however, refused to pay Kat the entire amount demanded. As a solidary debtor, Matt did not
deny liability on the amount of P1M. Matt, however, posited that the additional amount of P500,000.00 which Kat
seeks to recover as damages should properly be demanded only from Cedric whose negligence was the proximate
cause for the loss of the pick-up to be delivered. Does Matts argument have legal basis?
39. On April 15, 2014, Gladys, Tere and Ella signed a promissory note in favor of Francis. At the time of the signing,
Ella was suffering from schizophrenia. In the promissory note, the solidary debtors bound themselves to pay Francis,
on April 15, 2015, the amount of P120,000.00. When maturity date came, the debtors did not make good their
promise under the note. Hence, on April 30, 2015, Francis filed an action against Gladys demanding for the payment
of the entire P120,000.00 obligation. How much is Gladys liable to Francis under the promissory note, and
considering the factual circumstances?
40. On January 15, 2015, D obliged himself to repaint the car of C, for a consideration of P80,000.00, and to finish it
within 30 days. It was also agreed by the parties that if D is not able to finish the repainting job in 30 days, D will pay C
a penalty of P8,000.00. On the eighth day of repainting, D informed C that his daughter was treating him to a 45-day
European tour. So D just offered to pay C the P8,000.00 penalty because he could no longer proceed with the
repainting job as he was expected to fly in four (4) days. C, however, refused to accept the P8,000.00, and insisted that
D finish the job as agreed upon. Is C legally justified in his demands? Clue: Art. 1227.
41. On March 20, 2015, Engr. D obliged himself to construct a chapel for Fr. C for P350,000.00. The building contract
carried with it a penal clause to the effect that in case of breach with his obligation, Engr. D will be liable to pay Fr. C a
penalty of P35,000.00. When the chapel was two weeks away from completion, Fr. C detected some discrepancies in
the construction. It was discovered that major portions of the chapel were not constructed according to the
specifications in the parties building contract. Hence, Fr. C refused to pay his unpaid balance of P50,000.00 to Engr. D,
and filed a case against Engr. D to recover the P35,000.00 penalty for breach of contract. Are the actions of Fr. C
legally justified under the factual circumstances of this case? Clue: Art. 1227.
42. D promised to deliver to C 600 bottles of sparkling wine worth P800,000.00 for the 70th birthday celebration of his
mother. It was stipulated by the parties that if D fails to deliver on the day agreed upon, D will be liable to C for a
penalty of P50,000.00. On the day of the celebration, D was able to deliver only 580 of the 600 bottles promised.
Hence, C filed an action against D to recover the penalty of P50,000.00 as stipulated in the parties contract. Is Cs
action legally justified? Clue: Art. 1229.
43. D obliged himself to sell to C for P65,000.00 his Australian kangaroo which was then pregnant. It was agreed upon
by the parties that D would deliver the kangaroo to C after it gave birth or, in default thereof, to pay a penalty of
P5,000.00. However, the kangaroo died while giving birth to its joey. Hence, D was not able to make good his
obligation to C. In view of the non-delivery of the kangaroo, C filed an action against D for the recovery of the penalty of
P5,000.00 as stipulated by the parties in their contract. Does Cs action have legal basis? Clue: Art. 1230.

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44. On December 4, 2014, D obtained a loan from C in the amount of P300,000.00. It was agreed by the parties that
on June 15, 2014, D could comply with his obligation by payment to C of the P300,000.00, or by delivering to C 150
sacks of Dinorado rice, or by giving C 15 German Shepherd puppies. On June 15, 2015, D was short of cash so he
paid C the amount of P150,000.00. At the same time, D also delivered to C 75 sacks of Dinorado rice which was valued
at P150,000.00. C, however, refused to accept Ds payment and delivery. Is C legally justified in rejecting Ds
payment? Clue: Art. 1199.
45. On February 11, 2015, D obliged himself to give C his emerald ring or his portable Panasonic DVD player. It was
agreed that D will deliver the emerald ring or the portable DVD player to Cs house on or before July 15, 2015. On July
15, 2015, D arrived at the house of C and delivered to C his emerald ring. C, however, refused to accept the emerald
ring and insisted that D deliver the portable DVD player instead. D, however, was stubborn and insisted that C accept
the emerald ring. Decide on the rights of the parties. Clue: Art. 1200.
46. On January 31, 2015, D obliged himself to give C, at Ds option, on April 15, 2015, the following objects: (a) his
goat from Israel worth P45,000.00; (b) his Swiss cow worth P55,000.00; or, (c) his Australian kangaroo worth
P60,000.00. On March 24, 2015, before D had a chance to communicate his choice of the prestation to be complied
with to C, both the goat and the cow died because Ds caretaker had neglected to feed them for 2 weeks. What will be
the obligation of D to C on maturity date? What will be his liability?
Clue: Art. 1204.
47. On May 5, 2015, Jim entered into an agreement with Jet. Under the agreement, Jim obliged himself to deliver to Jet an
antigue ruby ring worth P50,000.00 anytime that Jet wants it and demands delivery. On June 5, 2015, Jet makes up her mind
and insists on the delivery of the ruby ring from Jim. Jim, however, denies liability and claims that the condition, that is
anytime Jet wants it, was potestative in nature. Hence, the same condition upon which Jims obligation was made to
depend upon, as well as the obligation itself, is void. Does Jims argument have legal basis? Is he under obligation to deliver
to Jet the rubi ring as promised? ! Clue: Art. 1182.
48. On March 15, 2015, Donna and Celia entered into an agreement. In their agreement, Donna obliged herself to purchase
from Celia a house and lot located in Makati for P3.5M. Donnas husband had been detailed by their office from Baguio City
to Makati effective May 1, 2015. Hence, the family was relocating permanently to Makati. For this reason, it was agreed by
the parties that by April 15, 2015, Celia should have vacated and readied the house for occupancy to allow Donna and her
family to move in. On April 13, 2015, when Donna contacted Celia, she was informed that Celia had not even taken initial
steps to vacate the subject property. Hence, Donna was left with no other recourse but to accept the proposal of an agent for
the acquisition of a two-bedroom condominium unit at the Avida Towers in Makati which was available for occupancy as of
April 15, 2015. Celia, however, demanded that Donna make good her commitment to purchase Celias Makati house and lot
as per their March 15, 2015 agreement. Under the factual circumstances obtaining, is Donna bound to comply with her
obligation? ! Clue: Art. 1184.
49. Angelo hired Engr. Luis to construct a 50-kilometer road within his private subdivision. It was agreed that Engr. Luis was
to finish the construction in 3 months. The contract price agreed upon was P2M. After six weeks, however, and without
justification, Angelo ordered the construction stopped with the work barely half-finished. Engr. Luis was left with no choice but
to follow the owners instruction for work stoppage. Engr. Luis, however, charged Angelo for the complete contract price of
P2M. Angelo refused to pay the entire amount on the ground that the project was only then half-finished. Can Engr. Luis
demand from Angelo payment of the entire contract price of P2M? ! Clue: Art. 1186.
50. On February 11, 2013, Francis and Josh entered into a transaction with regard to a 1-hectare farm lot in Laguna owned
by Francis. The parties agreed that should Josh pass the Nursing Board Examination on September 30, 2014, Francis will
sell the said farm lot to Josh for P1.5M. On March 15, 2013, Josh promised to sell the farm lot to Reuben for P2M. On
October 23, 2013, Francis promised to sell the farm lot to Peter. On September 30, 2014, Josh passed the Nursing Board
Examination. As between Reuben and Peter, who has a better right over the farm lot? ! Clue: Correlate Arts. 1187 &
1188.
51. On April 4, 2014, I gave you Shaun, my favourite sheep, on the condition that you will never go to the casino. On
September 20, 2014, Shaun gave birth to 5 healthy lambs. On January 2, 2015, however, I saw you going to the casino
again. So, on January 3, 2015, I demanded for the return of Shaun and her 5 lambs. You gave me Shaun but you refused to
give me her babies, and in fact sold the 5 lambs last Christmas. Do you think your refusal is legally justified under the factual
circumstances? ! Clue: Correlate Arts. 1189 & 1190.

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52. On December 20, 2010, Rudy and Dan entered into a lease contract. It was agreed that Dan would lease an office
space from Rudy for 5 years starting January 1, 2011 to December 31, 2015. In consideration therefor, Rudy was to collect a
monthly rental of P10,000.00 from Dan. Starting January 1, 2013, however, or after 2 years of the contract, Dan failed to pay
his monthly rental payments despite repeated demands from Rudy. Hence, on March 1, 2013, Rudy asked Dan to vacate the
premises if he could not afford to pay. On March 15, 2013, Dan turned over the office space to Rudy. Now, Rudy demands
from Dan payment of rents for the remaining three years of the contract, i.e., from January 1, 2013 to December 31, 2015. Is
Rudy well within his rights to claim said rental payments for the remaining term of their lease contract? ! Clue: Art. 1191,
par. 2

53. On January 1, 2013, D borrowed P200,000.00 from C payable on January 1, 2015, with 20% interest annually. On
January 1, 2014, thinking that the obligation was already due, D paid C P200,000.00 plus P80,000 interest. On
January 3, 2014, D realized that his debt was not yet due until a year after. Hence, D went to C to recover his
payment. May D recover from C under the circumstances? How much? ! Clue: Art. 1195.
54. On January 1, 2014, D borrowed P150,000.00 from C. As security for the payment of his debt, D pledged with C a
Rolex Date Just watch worth P225,000.00 which D bought from Hong Kong. It was agreed by the parties that D was to
pay back the money loaned, with 10% interest per annum, on December 31, 2014. On September 5, 2014, D went to
C offering payment of the loan, plus interest corresponding to 8 months, and at the same time redemption of the Rolex
watch pledged. C, however, refused to accept Ds payment as well as the return to D of his Rolex watch. Was C
legally justified in refusing the payment of D? ! Clue: Art. 1196.
55. On January 1, 2014, D borrowed P1M from C. D promised to pay back the amount to C on December 31, 2015 at
10% interest per annum. On December 31, 2014, D offered to pay the amount of P1.1M to C, which covered the
principal amount of the loan plus 10% interest on the loan for one year. C willingly accepted the payment. On
February 1, 2015, however, D asked his lawyer to send a demand letter to D claiming payment of the balance of
P100,000.00 pertaining to the interest on Ds principal loan and corresponding to the period from January 1, 2014 to
December 31, 2015. C maintains that since the period for the payment of the loan was established for the benefit of
both the debtor and the creditor, the debtor had no right to make premature payments. C also maintains that if D
insists on paying prematurely, he can only be allowed to do so after paying the interest computed up to the period
agreed upon by the parties, i.e. P200,000.00. Is Cs argument legally tenable? ! Clue: Art. 1196.
56. D obliged himself to pay C P85,000.00 as soon as possible. Three months thereafter, C demanded payment
from D but the latter refused to pay. What is the remedy of C? Can C outrightly file an action in court for specific
performance to compel D to pay his obligation? ! Clue: Art. 1197, par. 2.
57. On June 30, 2014, Malusog Medical Equipments, Inc. sold to Dr. Katakutan a portable x-ray machine for P1.2M.
MMEI agreed to accept payment for the machine in four equal quarterly installments until June 30, 2015 but asked for
a collateral. Dr. Katakutan then mortgaged to MMEI a 2012 MB 100 which was being used by his infirmary as
ambulance. On September 15, 2014, the MB 100, while parked outside the NAIA Terminal 3 awaiting the arrival of a
patient, was carnapped and was no longer recovered. After notice of the incident, MMEI, on September 20, 2014,
demanded for payment of the entire P1.2M from Dr. Katakutan. Dr. Katakutan, however, refused to pay the total price
for the machine. Dr. Katakutan contends that he cannot be made liable for the whole obligation because under the
parties agreement, he was given until June 30, 2015 within which to pay for the contract price in four equal quarterly
installments. Besides, Dr. Katakutan states, the collateral he furnished to MMEI was lost not through his own fault but
by virtue of a fortuitous event. Will Dr. Katakutans arguments prosper? ! Clue: Art. 1198, par. 3.
58. On January 15, 2014, Andrew borrowed money from Solo in the amount of P1M due for payment on January 15,
2015 at 25% interest per annum. By end of October, 2014, Andrew suffered financial reverses so he went to visit his
college best friend John. Andrew asked John if he could borrow from John without interest to pay his P1M debt with
Solo, which was to be due on January 15, 2015. John promised to help Andrew. Three days after he saw John,
Andrew luckily won in the Bingo games at SM, and partially paid Solo the amount of P850,000.00. Unknown to
Andrew, however, on the very day that he saw John, John immediately went to Solo and paid Andrews debt in the
amount of P1M plus the 25% interest due in the amount of P250,000.00. Can John later on recover from Andrew the
entire P1,250,000.00 that he paid to Solo? ! Art. 1236

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59. On March 15, 2013, Jun borrowed from Chris the amount of P350,000.00 payable on March 15, 2015. As security
for the loan, Jun mortgaged his 90-square meter lot in Dasmarinas, Cavite, which was valued at P500,000.00, to Chris.
On February 28, 2015, Juns cousin, Lucille, paid Chris P350,000.00 without consulting Jun about it. When the
obligation, however, fell due on March 15, 2015, Jun was already insolvent. Arvin, the husband of Lucille, now seeks
to foreclose Juns 90-square meter mortgaged property, so he and his wife can recover the P350,000.00 payment
advanced by Lucille to Chris. Can Arvin foreclose on the mortgaged property? ! Art. 1237
60. Baldo obliged himself to deliver to Raoul a Jaguar car. Not having been able to obtain a Jaguar, Baldo convinced
Raoul to accept instead a Rolls Royce car which was a more expensive car. Raoul, however, refused to accept a Rolls
Royce, and insisted that Baldo deliver to him a Jaguar. Is Raoul legally justified in refusing to accept the Rolls Royce
car considering that the same is even more expensive than the Jaguar car?
61. Ruben owes Ed P50,000.00. On maturity date, Ruben offered to pay Ed the amount of P45,000.00, which was
the only money he then had. Ed, however refused to accept the payment. Thereafter, Ruben bumped into the 30-year
old son of Ed, Joshua, to whom Ruben gave the P45,000.00, with a request that Joshua turn over the money to his
father. Instead of delivering the money to his father, however, Joshua immediately went to the casino, and squandered
the entire amount in the slot machines.
a.
b.

Was Ed justified in refusing to accept the payment offered by Ruben?

May Ed still recover the full amount of P45,000.00 from Ruben, after the said amount was squandered in
its entirety by his son Joshua? ! Arts. 1245 & 1240

62. Marissa owes Retchel P100,000.00 due on December 15, 2015. On maturity date, Marissa presented to Retchel a
dated MBTC check in the amount of P100,000.00 with a certification from the bank manager that Marissa was a client
in good credit standing who has been banking with MBTC for almost 30 years. Despite the tender of payment and the
certification issued by the bank manager, Retchel, however, refused to accept the payment and insisted that Marissa
pay her in cash. Is Retchel justified in rejecting this tender of payment made by Marissa, it being certain that the
amount of the check will later on be cleared for sufficiency of funds in her (Retchels) favor?
! Art. 1249

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