Académique Documents
Professionnel Documents
Culture Documents
In General
Kinds of Obligations
40%
Specific Circumstances
affecting obligations
Modes of Extinguishment
10% 5%
Kinds of Obligations
1989 Bar Exam Question No. 15(2)
“For value received from time to time since 1947, we [jointly and severally promise
to] pay to Mr. [George Pay] at his office at the China Banking Corporation the sum
of [Twenty Six Thousand Nine Hundred Pesos] (P26,900.00), with interest thereon
at the rate of 12% per annum upon receipt by either of the undersigned of cash
payment from the Estate of the late Don Carlos Palanca or upon demand”. . .
"Every obligation whose performance does not depend upon a future or uncertain
event, or upon a past event unknown to the parties, is demandable at once."
Kinds of Obligations
Pure/Conditional /Obligations with a Term
2003 Bar Exam Question No. 13
(a) Suppose Manuel had sold the same house and lot to
another before Eva passed the 1998 bar examinations, is
such sale valid? Why? (2%)
The buyer now sues the seller for specific performance with
damages. The defense is that the obligation to construct the
passageway should be with a period which, incidentally, had not
been fixed by them, hence, the need for fixing a judicial period.
Will the action for specific performance of the buyer against the
seller prosper?
Kinds of Obligations : Obligations with a Term
1984 Bar Exam Question No. 17
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 cosignatory. 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 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’s 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,
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.
Can Recardo’s property be foreclosed to pay the full balance of the loan?
(2%)
Kinds of Obligations
Joint and Solidary Obligations
1983 Bar Exam Question No. 12
Gobonseng v. Unibancard
G.R. No. 160026 December 10, 2007 AZCUNA, J.
“All charges made through the use of [the] card shall be paid by the
UNICARD holder and/or co-obligor within twenty (20) days from the date
of the said statement of account without the necessity of demand. These
charges or balance thereof remaining unpaid after this 20-day period shall
bear interest at the rate of 3% per month and a penalty equivalent to 5%
of the amount due for every month or a fraction of a month’s delay… In
case it is necessary to collect the account by or thru an attorney-at-law or
collection agency, the UNICARD holder and co-obligor shall pay 25% of
the amount due which shall in no case be less than P1,000.00, as
collection or attorney’s fees, in addition to costs and other litigation
expenses.”
Compliance with Obligation : Degree of Diligence Required
MERALCO v. Ramoy
G.R. No. 158911 March 4, 2008 AUSTRIA-MARTINEZ, J.
FIL-ESTATE PROPERTIES v. GO
G.R. No. 165164 August 17, 2007 QUISUMBING, J.
SICAM v. JORGE
G.R. NO. 159617 August 8, 2007 AUSTRIA-MARTINEZ, J.
AB corp. entered into a contract with XY 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 the facility in 18 months, at the total
contract price of P10 million, XY Corp. paid 50% of the total contract price, the
balance to be paid upon completion of the work. The work started
immediately, but AB Corp. later experience work slippage because of labor
unrest in his company. AB Corp.’s employees claimed that they are not being
paid on time; hence, the work slowdown. As of the 17th month, work was 45%
complete. AB Corp. asked for extension of time, claiming that its labor
problems is a case of fortuitous event, but this was denied by XY Corp. When
it became certain that the construction could not be finished on time, XY corp.
sent written notice canceling the contract, and requiring AB Corp. to
immediately vacate the premises.
Can the labor unrest be considered a fortuitous? (1%)
Can XY Corp. unilaterally and immediately cancel the contract? (2%)
Must AB Corp. return the 50% down payment? (2%)
Remedies
1983 Bar Exam Question No. 10
Did Magaling have the right to refuse the payment of part of the
obligation with a cashier’s check? Explain.
Modes of Extinguishment : Payment
1981 Bar Exam Question No. 11(b)
Felipe borrowed $100 from Gustavo in 1998, when the Phil P-US$ exchange
rate was P56-US$1. On March 1, 2008, Felipe tendered to Gustavo a
cashier’s check in the amount of P4,135 in payment of his US$ 100debt,
based on the Phil P-US$ exchange rate at the time. Gustavo accepted the
check, but forgot to deposit it until Sept.12, 2008. His bank refused to accept
the check because it had become stale. Gustavo now wants Felipe to pay him
in cash the amount of P5, 600. Claiming that the previous payment was not in
legal tender and that there has been extraordinary deflation since 1998, and
therefore, Felipe should pay him the value of the debt at the time it was
incurred. Felipe refused to pay him again, claiming that Gustavo is estopped
from raising the issue of legal tender, having accepted the check in March,
and that it was Gustavo’s negligence in not depositing the check immediately
that caused the check to become stale.
Can Gustavo now raise the issue that the cashier’s check is not legal tender?
(2%)
Can Felipe validly refuse to pay Gustavo again? (2%)
Can Felipe compel Gustavo to receive US$100 instead? (1%)
Extinguishment of Obligations : Payment
SABEROLA v. SUAREZ
G.R. No. 151227 July 14, 2008 NACHURA, J.:
Legal compensation under Article 1278 of the Civil Code may take place
"when all the requisites mentioned in Article 1279 are present," as
follows:
(1) That each one of the obligors be bound principally, and that he
be at the same time a principal creditor of the other;
(2) That both debts consist in a sum of money, or if the things due
are consumable, they be of the same kind, and also of the
same quality if the latter has been stated;
(3) That the two debts be due;
(4) That they be liquidated and demandable;
(5) That over neither of them there be any retention or
controversy, commenced by third persons and communicated
in due time to the debtor.
Modes of Extinguishment : Compensation
2008 Bar Question No. XV
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 cosignatory. 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 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’s 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, 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.
Can XYZ Bank validly assert legal compensation? (2%)
Modes of Extinguishment : Compensation
2002 Bar Question No. 9
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 cosignatory. 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 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’s 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, 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.
Does Recardo have basis under the Civil Code for claiming that the original
contract was novated? (2%)
CONTRACTS
Contracts
25%
Fundamental
Principles/Characteristics
Formalities
Defective Contracts
5%
35%
Sources of Obligations : Contract
Compliance with Obligations : Fortuitous Event
Kinds of Obligations : Joint & Solidary Obligations
Is the waiver valid and binding? Why or why not? Explain. (5%)
Fundamental Characteristics of Contracts
Relativity of Contracts
1998 Bar Exam Question No. 2(2)
A. Fictitious Void
B. Simulated
1. Absolutely Simulated
2. Relatively Simulated
II. Consent was Given
A. By an incapacitated person
1. Vitiated Voidable
2. In the name of another person without the authority of the latter unless he has Unenforceable
the authority of the law
Essential Elements of Contracts
Consent of the Contracting Parties
Contract of Option
2005 Bar Exam Question No. IX