Suggested Answers:

1. Tricia, Margarita, and Karen, three friends from law school and who placed first, second,
and third in the bar, respectively, decided to contribute One Million Pesos (Php
1,000,000.00) each to fund the purchase of an office unit at Inoza Towers to be the home
of their new law firm, TMK Law Offices. They agreed that the One Million Pesos would
be given no later than 31 December 2016 so that they could open the office on 14
February 2017. Karen, however, failed to give her contribution as she decided to pursue a
modeling career in Milan and has become the highest paid Filipina model in Europe.
Consequently, Tricia and Margarita had to contribute an extra Five Hundred Thousand
Pesos (Php 500,000.00) each. In January 2025, Tricia and Margarita decide to file a case
against Karen to collect the One Million Pesos (Php 1,000,000.00). Decide with reasons
(10 points).

Answer:

In the case at bar, the case against Karen will not prosper as it has already prescribed.
Tricia and Margarita only filed the case in January 2025 or roughly nine (9) years after the
cause of action had accrued. The Civil Code clearly provides that an action based on an
oral contract must be filed within six (6) years. Therefore, the case against Karen to collect
her share will not prosper.

2. LexCorp entered into an agreement with Diana Prince for the complete design,
construction, and furnishing/outfitting of the corporate headquarters of the Justice League
in Bonifacio Global City. The agreement also provided that the lobby of the building
would feature a mural of the founding members of the Justice League, Clark Kent, Bruce
Wayne, and Diana Prince to be painted by world renowned artist, Barbara Gordon.

LexCorp completed the construction and turned over the corporate headquarters to Diana
Prince on 01 March 2017. Upon inspection, Diana Prince noticed that the offices of Clark
Kent, Bruce Wayne, and Barry Allen lacked the office desks and computers. Diana
Prince also noticed that the mural in the lobby was painted not by Barbara Gordon but by
Harley Quinn.

The Justice League has hired you as its lawyer. Identify all the legal issues and given the
appropriate legal advice (15 points).

Answer:

As lawyer of the Justice League, I would tell my clients that there are two main issues to be
tackled. The first is whether LexCorp breached the obligation to design, construct, furnish,
and outfit the corporate headquarters of the Justice League. The second issue is whether
or not the provision regarding the mural partakes of a condition or is merely an obligation
of LexCorp.

With regard to the first issue, clearly there was a breach of the obligation. LexCorp agreed
to design, construct, furnish, and outfit the corporate headquarters of the Justice League.
This meant that LexCorp had to deliver the building completely furnished and usable by
the Justice League. The fact that there were missing office furniture and equipment shows
that there was a breach and LexCorp is liable for damages since the Civil Code provides
that those who in the performance of their obligations violate the terms or tenor thereof are
liable for damages.

With regard to the second issue, the facts at bar clearly show that the same is merely one of
the terms of the agreement and not a condition as provided for in the Civil Code. The
painting of the mural did not give rise to or extinguish the obligation. However, LexCorp,
again, did not comply with its obligations and therefore can be held liable for damages
under the Civil Code. Furthermore, the Civil Code provides that the Justice League can
have the mural done by Barbara Gordon at the expense of LexCorp.