OBLIGATIONS

Conditional Obligations (2000)

Pedro promised to give his grandson a car if the latter will pass the bar examinations. When his
grandson passed the said examinations, Pedro refused to give the car on the ground that the
condition was a purely potestative one. Is he correct or not? (2%)
Extinguishment; Condonation (2000)

Arturo borrowed P500, 000.00 from his father. After he had paid P300, 000.00, his father
died. When the administrator of his father’s estate requested the payment of the balance of P200,
000.00. Arturo replied that the same had been condoned by his father as evidenced by a notation
at the back of check payment for the P300, 000.00 reading: “In full payment of the loan”. Will
this be a valid defense in an action for collection? (3%)
Loss of the thing due; Force Majeure (2000)

Kristina brought her diamond ring to a jewelry shop for cleaning. The jewelry shop
undertook to return the ring by February 1, 1999. When the said date arrived, the jewelry shop
informed Kristina that the job was not yet finished. They asked her to return five days later. On
February 6, 1999, Kristina went to the shop to claim the ring, but she was informed that the same
was stolen by a thief who entered the shop the night before. Kristina filed an action for damages
against jewelry shop which put up the defense of force majeure, Will the action prosper or not?
(5%)
Extinguishment; Assignment of Rights (2001)

The sugar cane planters of Batangas entered into a long term milling contract with the
Central Azucarera de Don Pedro Inc. Ten years later, the Central assigned its rights to the said
milling contract to a Taiwanese group which would take over the operations of the sugar mill.
The planters filed an action to annul the said assignment on the ground that the Taiwanese group
was not registered with the Board of Investment. Will the action prosper or not? Explain briefly,
(5%).

(Note: The question presupposes knowledge and requires the application of the provisions of the
Omnibus Investment Code, which properly belongs to Commercial Law)
Extinguishment; Extraordinary Inflation of Deflation (2001)

On July 1, 1998, Brian leased an office space in a building for a period of five years at
the rental rate of P1.000.00 a month. The contract of lease contained a provision that “in case of
inflation or devaluation of the Philippine peso, the monthly rental will automatically be increased
or decreased depending on the devaluation or inflation of the peso to the dollar.” Starting March
1,2001, the lessor increased the rental to P2,000.00 a month, on the ground of inflation proven by
the fact that the exchange rate of the Philippine peso to the dollar had increased from
P25.00=$1.00 to P50.00=$1.00. Brian refused to pay the increased rate and action for unlawful
detainer was filed against him. Will the action prosper? Why? (5%)
Liability; Lease; Joint Liability (2001)

Four foreign medical students rented the apartment of Thelma for a period of one year.
After one semester, three of them returned to their home country and the fourth transferred to a
boarding house. Thelma discovered that they left unpaid telephone bills in the total amount of
P80, 000.00. The lease contract provided that the lessees shall pay for the telephone services in
the leased premises. Thelma demanded that the fourth student pay the entire amount of the
unpaid telephone bills, but the latter is willing to pay one fourth of it. Who is correct? Why?
(5%)
CONTRACTS

Consideration; Validity (2000)

Lolita was employed in a finance company. Because she could not account for the funds
entrusted to her, she was charged with estafa and ordered arrested. In order to secure her release
from jail, her parents executed a promissory note to pay the finance company the amount
allegedly misappropriated by their daughter. The finance company then executed an affidavit of
desistance which led to the withdrawal of the information against Lolita and release from jail.
The parents failed to comply with their promissory note and the finance company sued them for
specific performance. Will the action prosper or not? (5%)