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2010 Bar Questions: each in the amount of P100,000.

00, to cover the

twelve monthly installment payments. On the third,
# XV fourth and fifth months, the corresponding checks
bounced. The bank then declared the whole obligation
A, B, and C entered into a partnership to due, and proceeded to deduct the amount of one
operate a restaurant business. When the restaurant million pesos (P1,000,000.00) from Sarahs deposit
had gone past break-even stage and started to garner after notice to her that this is a form of compensation
considerable profits, C died. A and B continued the allowed by law. Is the bank correct? Explain. (4%)
business without dissolving the partnership. They in
fact opened a branch of the restaurant, incurring
obligations in the process. Creditors started # XVII
demanding for the payment of their obligations.
Rosario obtained a loan of P100,000.00 from
A. Who are liable for the settlement of the Jennifer, and pledged her diamond ring. The contract
partnerships obligations? Explain? (3%) signed by the parties stipulated that if Rosario is
unable to redeem the ring on due date, she will
B. What are the creditors recourse/s? Explain. (3%) execute a document in favor of Jennifer providing that
the ring shall automatically be considered full payment
of the loan.
[a] Is the contract valid? Explain. (3%)
X was the owner of an unregistered parcel of
land in Cabanatuan City. As she was abroad, she [b] Will your answer to [a] be the same if the contract
advised her sister Y via overseas call to sell the land stipulates that upon failure of Rosario to redeem the
and sign a contract of sale on her behalf. Y thus sold ring on due date, Jennifer may immediately sell the
the land to B1 on March 31, 2001 and executed a ring and appropriate the entire proceeds thereof for
deed of absolute sale on behalf of X. B1 fully paid the herself as full payment of the loan? Reasons. (3%)
purchase price. B2, unaware of the sale of the land to
B1, signified to Y his interest to buy it but asked Y for
her authority from X. Without informing X that she had 2008 Bar Questions:
sold the land to B1, Y sought X for a written authority
to sell. X e-mailed Y an authority to sell the land. Y # VIII
thereafter sold the land on May 1, 2001 to B2 on
monthly installment basis for two years, the first Adam, a building contractor, was engaged by
installment to be paid at the end of May 2001. Blas to construct a house on a lot which he (Blas)
owns. While digging on the lot in order to lay down the
Who between B1 and B2 has a better right over the foundation of the house, Adam hit a very hard object. It
land? Explain. (5%) turned out to be the vault of the old Banco de las Islas
Filipinas. Using a detonation device, Adam was able to
open the vault containing old notes and coins which
2009 Bar Questions: were in circulation during the Spanish era. While the
notes and coins are no longer legal tender, they were
#I valued at P 100 million because of their historical value
TRUE or FALSE. Answer TRUE if the statement is and the coins silver and nickel content. The following
true, or FALSE if the statement is false. Explain your filed legal claims over the notes and coins:
answer in not more than two (2) sentences. (5%)
i) Adam, as finder;
[a] A clause in an arbitration contract granting one of
the parties the power to choose more arbitrators than ii) Blas, as owner of the property where they
the other renders the arbitration contract void. were found;

[d] The renunciation by a co-owner of his undivided iii) Bank of the Philippine Islands, as
share in the co-owned property in lieu of the successor-in-interest of the owner of the vault; and
performance of his obligation to contribute to taxes and
expenses for the preservation of the property iv) The Philippine Government because of
constitutes dacion en pago. their historical value.

# XV # XV

Sarah had a deposit in a savings account with Eduardo was granted a loan by XYZ Bank for
Filipino Universal Bank in the amount of five million the purpose of improving a building which XYZ leased
pesos (P5,000,000.00). To buy a new car, she from him. Eduardo executed the promissory note
obtained a loan from the same bank in the amount of (PN) in favor of the bank, with his friend Recardo as
P1,200,000.00, payable in twelve monthly installments. cosignatory. In the PN, they both acknowledged that
Sarah issued in favor of the bank post-dated checks, they are individually and collectively liable and
waived the need for prior demand. To secure the PN, bank refused to accept the check because it had
Recardo executed a real estate mortgage on his own become stale. Gustavo now wants Felipe to pay him in
property. When Eduardo defaulted on the PN, XYZ cash the amount of P5,600. Claiming that the previous
stopped payment of rentals on the building on the payment was not in legal tender and that there has
ground that legal compensation had set in. Since there been extraordinary deflation since 1998, and therefore,
was still a balance due on the PN after applying the Felipe should pay him the value of the debt at the time
rentals, XYZ foreclosed the real estate mortgage over it was incurred. Felipe refused to pay him again,
Recardos property. Recardo opposed the foreclosure claiming that Gustavo is estopped from raising the
on the ground that he is only a co-signatory; that no issue of legal tender, having accepted the check in
demand was made upon him for payment, and March, and that it was Gustavos negligence in not
assuming he is liable, his liability should not go beyond depositing the check immediately that caused the
half the balance of the loan. Further, Recardo said that check to become stale.
when the bank invoked compensation between the
rentals and the amount of the loan, it amounted to a a) Can Gustavo now raise the issue that the cashiers
new contract or novation, and had the effect of check is not legal tender? (2%)
extinguishing the security since he did not give his
consent (as owner of the property under the real estate b) Can Felipe validly refuse to pay Gustavo again?
mortgage) thereto. (2%)

a) Can XYZ Bank validly asserts legal compensation? c) Can Felipe compel Gustavo to receive US$100
(2%) instead? (1%)

b) Can Recardos property be foreclosed to pay the full

balance of the loan? (2%) # XVIII

c) Does Recardo have basis under the Civil Code for AB Corp. entered into a contract with XY
claiming that the original contract was novated? (2%) Corp. whereby the former agreed to construct the
research and laboratory facilities of the latter. Under
the terms of the contract, AB Corp. agreed to complete
# XVI the facility in 18 months, at the total contract price of
P10 million. XY Corp. paid 50% of the total contract
Dux leased his house to Iris for a period of 2 price, the balance to be paid upon completion of the
years, at the rate of P25,000.00 monthly, payable work. The work started immediately, but AB Corp. later
annually in advance. The contract stipulated that it experienced work slippage because of labor unrest in
may be renewed for another 2-year period upon his company. AB Corp.s employees claimed that they
mutual agreement of the parties. The contract also are not being paid on time; hence, the work slowdown.
granted Iris the right of first refusal to purchase the As of the 17th month, work was only 45% completed.
property at any time during the lease, if Dux decides to AB Corp. asked for extension of time, claiming that its
sell the property at the same price that the property is labor problems is a case of fortuitous event, but this
offered for sale to a third party. Twenty-three months was denied by XY Corp. When it became certain that
after execution of the lease contract, Dux sold the the construction could not be finished on time, XY
house to his mother for P2 million. Iris claimed that the Corp. sent written notice canceling the contract, and
sale was a breach of her right of first refusal. Dux said requiring AB Corp. to immediately vacate the
there was no breach because the property was sold to premises.
his mother who is not a third party. Iris filed an action
to rescind the sale and to compel Dux to sell the a) Can the labor unrest be considered a fortuitous
property to her at the same price. Alternatively, she event? (1%)
asked the court to extend the lease for another 2 years
on the same terms. b) Can XY Corp. unilaterally and immediately cancels
the contract? (2%)
a) Can Iris seek rescission of the sale of the property
to Duxs mother? (3%) c) Must AB Corp. returns the 50% downpayment?
b) Will the alternative prayer for extension of the lease
prosper? (2%)


Felipe borrowed $100 from Gustavo in 1998,

when the Phil P - US$ exchange rate was P56
US$1. On March 1, 2008, Felipe tendered to Gustavo
a cashiers check in the amount of P4,135 in payment
of his US$ 100 debt, based on the Phil P US$
exchange rate at that time. Gustavo accepted the
check, but forgot to deposit it until Sept. 12, 2008. His