QUESTION.
Are the following obligations valid, why, and if they are valid, when
is the obligation demandable in each case?
(a) If the debtor promises to pay as soon as he has the means to pay;
(b) If the debtor promises to pay when he likes;
(c) If the debtor promises to pay when he becomes a lawyer;
(d) If the debtor promises to pay if his son, who is sick with cancer, does not die
within one year. 5%"
QUESTION. Spouses Alfredo and Racquel were active members of a religious
congregation. They donated a parcel of land in favor to that congregation in a duly
notarized Deed of Donation, subject to the condition that the Minister shall construct
thereon a place of worship within 1 year from the acceptance of the donation. In an
affidavit he executed in behalf of the congregation, the Minister accepted the
donation. The Deed of Donation was not registered with the Registry of Deeds.
However, instead of constructing a place of worship, the Minister constructed a
bungalow on the property he used as his residence. Disappointed with the Minister,
the spouses revoked the donation and demanded that he vacate the premises
immediately. But the Minister refused to leave, claiming that aside from using the
bungalow as his residence, he is also using it as a place of worship on special
occasions. Under the circumstances, can Alfredo and Racquel evict the Minister and
recover possession of the property? If you were the couple's counsel, what action
will you take to protect the interests of your clients?
QUESTION. Roy and Carlos both undertook a contract to deliver to Sam in Manila
a boat docked in Subic. Before they could deliver it, however, the boat sank in a
storm. The contract provides that a fortuitous event shall not exempt Roy and Carlos
from their obligation. Owing to the loss of the motor boat, such obligation is deemed
converted into one of indemnity for damages. Is the liability of Roy and Carlos joint
or solidary?
QUESTION. Iya and Betty owed Jun P500,000.00 for advancing their equity in a
corporation they joined as incorporators. Iya and Betty bound themselves solidarily
liable for the debt. Later, Iya and Jun became sweethearts so Jun condoned the debt
of P500,000.00. May lya demand from Betty P250,000.00 as her share in the debt?
Explain with legal basis.
QUESTION. Juancho, Don and Pedro borrowed P150,000.00 from their friend Cita
to put up an internet cafe orally promising to pay her the full amount after one year.
Because of their lack of business know-how, their business collapsed. Juancho and
Don ended up penniless but Pedro was able to borrow money and put up a restaurant
which did well. Can Cita demand that Pedro pays the entire obligation since he,
together with the two others, promised to pay the amount in full after one year?
Defend your answer.
QUESTION. Eduardo was granted a loan by XYZ Bank for the purpose of
improving a building which XYZ leased from him. Eduardo, executed the
promissory note (""PN"") in favor of the bank, with his friend Recardo as co -
signatory. In the PN, they both acknowledged that they are ""individually and
collectively"" liable and waived the need for prior demand. To secure the PN,
Recardo executed a real estate mortgage on his own property. When 24 Eduardo
defaulted on the PN, XYZ stopped payment of rentals on the building on the ground
that legal compensation had set in. Since there was still a balance due on the PN after
applying the rentals, XYZ foreclosed the real estate mortgage over Recardo's
property. Recardo opposed the foreclosure on the ground that he is only a co -
signatory; that no demand was made upon him for payment, and assuming he is
liable, his liability should not go beyond half the balance of the loan. Further,
Recardo said that when the bank invoked compensation between the rentals and the
amount of the loan, it amounted to a new contract or novation, and had the effect of
extinguishing the security since he did not give his consent (as owner of the property
under the real estate mortgage) thereto.
(a) Can XYZ Bank validly assert legal compensation?
(b) Does Recardo have basis under the Civil Code for claiming that the original
contract was novated?
QUESTION. Rudolf borrowed P1 million from Rodrigo and Fernando who acted
as solidary creditors. When the loan matured, Rodrigo wrote a letter to Rudolf,
demanding payment of the loan directly to him. Before Rudolf could comply,
Fernando went to see him personally to collect and he paid him. 25 Did Rudolf make
a valid payment?
QUESTION. Allan bought Billy’s property through Carlos; an agent empowered
with a special power of attorney (SPA) to sell the same. When Allan was ready to
pay as scheduled, Billy called, directing Allan to pay directly to him. On learning of
this, Carlos, Billy's agent, told Allan to pay through him as his SPA provided and to
protect his commission. Faced with two claimants, Allan consigned the payment in
court. Billy protested, contending that the consignation is ineffective since no tender
of payment was made to him. Is he correct?
QUESTION. Anne owed Bessy P1 million due on October 1, 2011 but failed to pay
her on due date. Bessy sent a demand letter to Anne giving her 5 days from receipt
within which to pay. Two days after receipt of the letter, Anne personally offered to
pay Bessy in manager's check but the latter refused to accept the same. The 5 days
lapsed. May Anne’s obligation be considered extinguished?
QUESTION. X borrowed money from a bank, secured by a mortgage on the land
of Y, his close friend. When the loan matured, Y offered to pay the bank but it
refused since Y was not the borrower. Is the bank’s action correct?
QUESTION. J.C. Construction (J.C.) bought steel bars from Matibay Steel
Industries (MSI) which is owned by Buddy Batungbacal. J.C. failed to pay the
purchased materials worth P500,000.00 on due date. J.C. persuaded its client
Amoroso with whom it had receivables to pay its obligation to MSI. Amoroso agreed
and paid MSI the amount of P50,000.00. After two (2) other payments, Amoroso
stopped making further payments. Buddy filed a complaint for collection of the
balance of the obligation and damages against J.C. J.C. denied any liability claiming
that its obligation was extinguished by reason of novation which took place when
MSI accepted partial payments from Amoroso on its behalf. Was the obligation of
J.C. Construction to MSI extinguished by novation? Why?
QUESTION. Jerico, the project owner, entered into a Construction Contract with
Ivan for the latter to construct his house. Jojo executed a Surety undertaking to
guarantee the performance of the work by Ivan. Jerico and Ivan later entered into a
Memorandum of Agreement (MOA) revising the work schedule of Ivan and the
subcontractors. The MOA stated that all the stipulations of the original contract not
in conflict with said agreement shall remain valid and legally effective. Jojo filed a
suit to declare him relieved of his undertaking as a result of the MOA because of the
change in the work schedule. Jerico claims there is no novation of the Construction
Contract. Decide the case and explain.
QUESTION. Samantha sold all her business interest in a sole proprietorship to
Sergio for the amount of PhP1 million. Under the sale agreement, Samantha was
supposed to pay for all prior unpaid utility bills incurred by the sole proprietorship.
A 27 month after the Contract to Sell was executed, Samantha still had not paid the
PhP50,000 electricity bills incurred prior to the sale. Since Sergio could not operate
the business without electricity and the utility company refused to restore electricity
services unless the unpaid bills were settled in full, Sergio had to pay the unpaid
electricity bills. When the date for payment arrived, Sergio only tendered
PhP950,000 representing the full purchase price, less the amount he paid for the
unpaid utility bills. Samantha refused to accept the tender on the ground that she was
the one supposed to pay the bills and Sergio did not have authorization to pay on her
behalf.
(a) What is the effect of payment made by Sergio without the knowledge and consent
of Samantha?
(b) Is Samantha guilty of mora accipiendi?