REVIEWER ON CIVIL LAW (6) Where th bigoris also 22 Ata is fortuitous event, there is si jgg8h ey breach of an obligation if the obligor fr because the fortuitous event is in, eft ized. PROBLEM: 1. ABCorp. entered intoa contract with XY Corp. whereby ee to construct the research and laboratory fac latter. Under the terms of the contract, AB Corp. agreed, ee te the facility in 18 months, atthe total contract price of pny pee XY Corp pid 80% ofthe total contract price, the talgn paid upon completion of the work. The work started te but AB Corp. later experienced work slippage because fo unrest in his company. AB Corp’s employees claimed are not being paid on time; hence, the work slowdown, 42 ne 17h month, work was only 45% completed. AB Corp. ade extension of time, claiming that its labor problems is «cay fortuitous event but this was denied by XY Corp. When ithe certain thatthe construction could not be finished on tine Corp. sent writen notice cancelling the contrac and equi Corp. to immediately vacate the premises. Tequii a) Can the labor unrest be considered a fortuitous event? b) Can XY Corp. unilaterally and immediately cancel te contract? ©) Must AB Corp. return the 50% downpayment? (2000 Ba Exams) A: a) NG. Labor unrest is not a fortuitous event. AB ‘Corp. isnot ‘excused from complying with its obligation of constructing the research and laboratory facilities of XY Corp. The labo it the “unrest is not i il AB! 'snon- oliance with its | obligation to the workers. ») No. XY Corp cannot unilaterally and immediately cane! the contract: The case involves reci ligations onthe reciprocal obligations, the rescission contemplated unde same provision is judicial rescission. Fesor li ©) No, AB Corporation need not return the entire 50% dow ie. Te Payment. The principle of quantum meruit is applica Problem states that 47% of the project was completed bepART IV —OBLIGATIONS AND co} ‘A. NATURE OF OBLIGATIONS “CTS 355, corporation can retain the a Aa aa nding ie ist return the balance and must pay gainaneg se Pamation XY Corp. because of AB Coxporation’s brea spncued by tion. obliga- tina brought her diamond ring to a jewel 0 cleant Teiewelry shop undertook to return the ring by ar ang When the said date arrived, the jewelry shop informed Krst that the job Was not yet finished. They asked her to wets days after.On February 6, 2013, Kristina went tothe shop te clare the ring, but she was informed that the same was stolen by a thief ‘who entered the shop the night before. Kristina fled an action for damages against the jewelry shop which put up the defense of one najeure. Will the action prosper or not? jc Theaction will prosper. Article 1165 of the New Civil Code provides oa he shall be responsible for any fortuitous ‘has effected delivery. Thus, ever: assuming for the sake of argument that the theft of the ring can be considered fortuitous event, th sl = 403. LIABILITY TO PAY INTEREST. A creditor: pel the payment of interest in obligations ae contracts if the following requisites are present: a) There is an agreement that the interest shall be earned; b) The agreement that interest shall be due shall be expressly stipulated in writing;® and c) The rate of interest_must not be usurious or excessive or unconscionable. 40801. Presumptions (Art. 1176). — itis prima facie presumed or there is disputable presumption that: a) When the creditor receives the principal without reservation with respect to the interest, said interest has been paid. When the creditor receives installment of a debt without reservation as to prior installments, such prior installments have been paid.REVIEWER ON CIVIL LAW Exact date is specifieg, Payable on January 10, 2915, le) The date is not fixed. When ax which is certain to happe; although the exact date Example: Death of a sj ev Nis spegat 1S unkn, | ified perso PROBLEM: *M"” and “N” were very good friends. “N” borrowed py “M.” Because oftheir close relationship, the promissory note am a “N* provided that he would pay the loan “whenever his meas 2) Subsequently, “M” and “N” quarreled. “M” now asl loan because he is in dire need of money. What le you take in behalf of “M”? A: °M" should file an action for the fixing ofthe te Article 180 in relation to Art. 1197 ofthe New Civil Galen that when the debtor binds himsel to pay when his meas him to doso, the obligation shall be deemed tobe one wi eet and the credit id. Inthe rene case, there is no fixed period for the payment ofthe lone “N* cannot be considered in default. It is only after “N" ales pay despite demand, within the period fixed by the court that ie can file an action against “N” for specific performance mi Ks You to colt Bal action if any you 6.02.01. Suspensive and Resolutory Period. a) Obligations with Suspensive Period. — Osi. gations for whose fulfillment a day certain has been fixed, shall be demandable ‘only when that day comes.* Example: (1) Mr. X shall deliver the horse to Mr. Y on January 15, 2015, Mr. ¥ canna demand the delivery of the horse before such date; (2) Mr. A will deliver the house and lot Mr. B when Mr. C dies. The death of Mr. Cis certain to happen although the date whenit will happen is uncertain. ») Obligations with Resolutory Period. — Ths obligations take effect at once, but termin “Art. 1193, NCC.