SUGGESTED ANSWER:
No, the action will not prosper. The action for rescission
may be brought only by the aggrieved party to the contract.
Since it was Salvador who failed to comply with his
conditional obligation, he is not the aggrieved party who
may file the action for rescission but the Star
Semiconductor Company. The company, however, is not
opting to rescind the contract but has chosen to waive
Salvador's compliance with the condition which it can do
under Art. 1545, NCC.
ALTERNATIVE ANSWER:
The action for rescission will not prosper. The buyer has
not committed any breach, let alone a substantial or serious
one, to warrant the rescission/resolution sought by the
vendor. On the contrary, it is the vendor who appears to
have failed to comply with the condition imposed by the
contract the fulfillment of which would have rendered the
obligation to pay the balance of the purchase price
demandable. Further, far from being unable to comply with
what is incumbent upon it, ie., pay the balance of the price the buyer has offered to pay it even without the vendor
having complied with the suspensive condition attached to
the payment of the price, thus waiving such condition as
well as the 60-day term in its favor The stipulation that the
P100,000.00 down payment shall be returned by the vendor
to the vendee if the squatters are not removed within six
months, is also a covenant for the benefit of the vendee,
which the latter has validly waived by implication when it
offered to pay the balance of the purchase price upon the
execution of a deed of absolute sale by the vendor. (Art.
1545, NCC)
OBLIGATIONS
Aleatory Contracts; Gambling (2004)
A. Mr. ZY lost P100,000 in a card game called Russian
poker, but he had no more cash to pay in full the winner at
the time the session ended. He promised to pay PX, the
winner, two weeks thereafter. But he failed to do so despite
the lapse of two months, so PX filed in court a suit to
collect the amount of P50,000 that he won but remained
unpaid. Will the collection suit against ZY prosper? Could
Mrs. ZY file in turn a suit against PX to recover the
P100,000 that her husband lost? Reason. (5%)
SUGGESTED ANSWER:
(a)
The obligation is valid. It is an obligation subject
to an indefinite period because the debtor binds himself to
pay when his means permit him to do so (Article 1180,
NCC). When the creditor knows that the debtor already has
the means to pay, he must file an action in court to fix the
period, and when the definite period as set by the court
arrives, the obligation to pay becomes demandable 9Article
1197, NCC).
SUGGESTED ANSWER:
(b)
The obligation to pay when he likes is a
suspensive condition the fulfillment of which is subject to
the sole will of the debtor and, therefore the conditional
obligation is void. (Article 1182, NCC).
SUGGESTED ANSWER:
(c)
The obligation is valid. It is subject to a suspensive
condition, i.e. the future and uncertain event of his
becoming a lawyer. The performance of this obligation does
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(d)
The obligation is valid. The death of the son of
cancer within one year is made a negative suspensive
condition to his making the payment. The obligation is
demandable if the son does not die within one year (Article
1185, NCC).
Conditional Obligations; Promise (1997)
In two separate documents signed by him, Juan Valentino
"obligated" himself each to Maria and to Perla, thus 'To Maria, my true love, I obligate myself to give you my
one and only horse when I feel like It."
- and 'To Perla, my true sweetheart, I obligate myself to pay you
the P500.00 I owe you when I feel like it."
Months passed but Juan never bothered to make good his
promises. Maria and Perla came to consult you on whether
or not they could recover on the basis of the foregoing
settings. What would your legal advice be?
SUGGESTED ANSWER:
(a) Yes, the sale to the other person is valid as a sale with a
resolutory condition because what operates as a suspensive
condition for Eva operates a resolutory condition for the
buyer.
FIRST ALTERNATIVE ANS WER:
Assuming that Eva is the one entitled to buy the house and
lot, she is not entitled to the rentals collected by Manuel
before she passed the bar examinations. Whether it is a
contract of sale or a contract to sell, reciprocal prestations
are deemed imposed A for the seller to deliver the object
sold and for the buyer to pay the price. Before the
happening of the condition, the fruits of the thing and the
interests on the money are deemed to have been mutually
compensated under Article 1187.
SECOND ALTERNATIVE ANSWER:
SUGGESTED ANSWER:
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The right of first refusal was not perfected as a right for the
reason that there was a conditional acceptance equivalent to
a counter-offer consisting in the amount of damages as
being credited on the purchase price. Therefore,
compensation did not result since there was no valid right
of first refusal (Art. 1475 & 1319, NCC)
ANOTHER MAIN ANSWER:
Y bank is correct. An. 1287, Civil Code, does not apply. All
the requisites of Art. 1279, Civil Code are present. In the
case of Gullas vs. PNB [62 Phil. 519), the Supreme Court
held: "The Civil Code contains provisions regarding
compensation (set off) and deposit.
These portions of
Philippine law provide that compensation shall take place
when two persons are reciprocally creditor and debtor of
each other. In this connection, it has been held that the
relation existing between a depositor and a bank is that of
creditor and debtor, x x x As a general rule, a bank has a
right of set off of the deposits in its hands for the payment
of any indebtedness to it on the part of a depositor." Hence,
compensation took place between the mutual obligations of
X and Y bank.
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 payment of the balance of
P200,000.00. Arturo replied that the same had been
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SUGGESTED ANSWER:
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1)
2)
SUGGESTED ANSWER:
(a)
A may avail the minority of B as a defense, but
only for Bs share of P 10,000.00. A solidary debtor may
avail himself of any defense which personally belongs to a
solidary co-debtor, but only as to the share of that codebtor.
(b)
A may avail of the condonation by X of Cs share
of P 10, 000.00. A solidary debtor may, in actions filed by
the creditor, avail himself of all defenses which are derived
from the nature of the obligation and of those which are
personal to him or pertain to his own share. With respect to
those which personally belong to others, he may avail
himself thereof only as regards that part of the debt for
which the latter are responsible. (Article 1222, NCC).
(c)
A may not interpose the defense of insolvency of
D as a defense. Applying the principle of mutual guaranty
among solidary debtors, A guaranteed the payment of Ds
share and of all the other co-debtors. Hence, A cannot avail
of the defense of Ds insolvency.
(d)
The extension of six (6) months given by X to E
may be availed of by A as a partial defense but only for the
share of E, there is no novation of the obligation but only
an act of liberality granted to E alone.
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
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SUGGESTED ANSWER:
a)
Was the action of DEVLAND proper? Explain.
(2%)
SUGGESTED ANSWER:
b)
Discuss the rights of Bernie under the circumstances. (2%)
SUGGESTED ANSWER:
It has been held in Borromeo vs. CA (47 SCRA 69), that the
Supreme Court allowed the simultaneous filing of action to
fix the probable contemplated period of the parties where
none is fixed in the agreement if this would avoid
multiplicity of suits. In addition, technicalities must be
subordinated to substantial justice.
ALTERNATIVE ANSWER:
TRUST
Express Trust; Prescription (1997)
On 01 January 1980, Redentor and Remedies entered into
an agreement by virtue of which the former was to register a
parcel of land in the name of Remedies under the explicit
covenant to reconvey the land to Remigio, son of Redentor,
upon the son's graduation from college. In 1981, the land
was registered in the name of Remedies.
Redentor died a year later or in 1982. In March 1983,
Remigio graduated from college. In February 1992, Remigio
accidentally found a copy of the document so constituting
Remedies as the trustee of the land. In May 1994, Remigio
filed a case against Remedies for the reconveyance of the
land to him. Remedies, in her answer, averred that the
action already prescribed. How should the matter be
decided?
SUGGESTED ANSWER:
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