Homework No.
1
Sapalaran, Ma. Carmela P
ECE70/A11
mcpsapalaran@hotmail.ph
TITLE I
CHAPTER 1
1. X saw at about one (1:00p.m.) in
the afternoon a child alone in a
shopping mall. The child who
strayed from Y, his mother, was
in tears and appeared very
hungry. Out of pity, X took him
to a restaurant to eat for which he
spent P150. Y did not give her
consent to the good deed of X.
Furthermore, they were on their
way home before the child got
lost. Is X entitled to be
reimbursed by Y for the amount
of P150.
2. While the car of X was parked by
the roadside, it was bumped at
the rear by a jeep belonging to Y.
Only the car of X suffered
damage. Under the
circumstances, does it follow that
Y is liable to X for the damage?
3. In the same problem, has X the
right to ask indemnity from R,
employer of X, on the ground
that when the accident occurred
X was then on his way to transact
business with a client of R?
4. D (debtor) borrowed P10,000
from C (creditor). On the due
date of the loan, D counld not
pay C because he lost to a robber
the P10,000 intended for C. in
addition, he suffered financial
reverses, and he was short of
cash even for his current family’s
needs. Is D legally justified to
refuse to pay C?
CHAPTER 2
1. S (seller) sold to B (buyer) on July 5,
a horse named Silver to be delivered
on July 20. However, on July 15, S
sold again and delivered the horse to
T. Who has a better right to Silver?
2. S sold to B a specific refrigerator
which S agreed to deliver not later
than July 31, S did not deliver the
refrigerator on said date. Is S guilty
of legal delay?
3. S promised to deliver to B a female
horse named Suzie on July 10. Suzie
gave birth to a colt on July 5.
a) What are the obligations of S?
b) Who has a right to the colt?
c) Who is the lawful owner of Suzie
in case it was sold and delivered
by S to T on July 8?
4. D (debtor) borrowed P20,000 from C
(creditor) payable after one (1) year?
Is D liable to pay interest?
5. R (lessor) issued a receipt that E
(lessee) has paid the rent for the
months of March, 2008. Can R still
collect from E the rents for January
and February, 2008?
CHAPTER 3
Section 1.
1. D (debtor) borrowed P20,000 from C
(creditor) payable on or before
August 30. Before the arrival of the
due date, C agreed to the promise of
B to pay C if B wants. Can C insist
that B pay not later than August 30?
2. Suppose in the same problem, D
obliges himself to pay C P10,000
after C has paid his obligation to T.
Is the obligation valid?
3. S (seller) agreed to sell B (buyer) a
specific car for P200,000, delivery of
the car and the payment of the price
to be made on June 15. Suppose S
delivered the car on June 15 but B
failed to pay the price, what are the
remedies of S?
4. S sold a parcel of land to B for
P240,000 payable in installments of
P20,000 a year. The land was
delivered to B who obtained
ownership thereof. After B had paid
P200,000, he could no longer
continuing paying in view of
financial reverses but he was willing
to pay the balance of P40,000 if
given more time. Thereupon, S sued
for rescission under Article 1191. If
you were the judge, would you grant
rescission?
5. D (debtor) binds himself to pay C
(creditor) a sum of money. Give the
three cases when the obligation of D
is demandable at once by C?
Section 2.
1. D (debtor) borrowed P10,000 from C
(creditor) at 15% interest per annum
payable on December 31. Can D
require C to accept payment before
December 31?
2. D binds himself to give P10,000 to C
upon the death of the father of D. Is
the obligation of D conditional or
one with a period.
3. D obtained a loan from C in the
amount of P50,000, payable on
August 10. As security for his debt,
D mortgaged his car in favor of C.
The car, however, was substantially
damaged without the fault of D.
What rights, if any, does C have
under the law? May C demand
payment from D even before August
10?
Section 3.
1. D (debtor) borrowed P10,000 from C
(creditor). It was agreed that D could
pay P10,000 or deliver his piano on
August 22. On August 20, D
informed C that the former would
deliver his piano. Can D still change
his period considering that he was
given the right of choice?
2. Under a contract, X (obligor)
promised to deliver to Y (obligee)
item one, or item two, or item three.
Y was given the right of choice.
What is the liability of X in case,
through his fault:
(a) Item two is lost or destroyed;
(b) All the items are lost or
destroyed?
3. S (seller) sold his TV set to B
(buyer) who gave S the option to
deliver instead of his refrigerator. Is
S liable to B in case the TV is lost
through S’s fault?
Section 4.
 1. X, Y, and Z bind themselves to pay
W P30,000. Only X received the
money as per agreement between X,
Y, and Z. On the due date of the
obligation, has W the right to
demand the full payment of P30,000
from Z alone?
2. X, Y, and Z promised to pay W
solidarily P30,000 on or before
September 10 without need of
demand. On September 9, X paid the
whole P30,000 to W.
(a) How much can X collect from Y
and Z?
(b) May X collect interest from Y
and Z?
(c) Suppose Z turns out to be
insolvent, how much can X
collect from Y?
3. A owes B and C, solidary creditors,
the sum of P20,000:
(a) Can C condone the debt without
the consent of B?
(b) Can C assign his rights without
the consent of B?
4. A, B, and C are solidarily liable to D.
For their failure to pay, D filed a
complaint in court but only against
C. Has C the right to demand that A
and B be also included as party
defendants?
5. A, B, and C, co- owners, sold a
printing equipment to D. They
solidarily bound themselves to
deliver the equipment on a certain
date. Through the fault of C, the
equipment was completely
destroyed. Give the rights and
obligations of the parties.
Section 5.
1. A and B bind themselves to pay C
their loan of P10,000 on a certain
date. Is the obligation divisible or
indivisible?
2. A, B, and C oblige themselves
jointly to deliver to D a particular
horse on a certain date. The
agreement among A, B, and C which
was made known to D is that they
will contribute the amount in buying
the horse. The horse was not
delivered on the due date because of
the failure of B to give his share of
the purchase price. State the rights
and obligations of the parties.
3. D finds himself to pay his loans of
P10,000 in four equal monthly
installments. Is the obligation of D
divisible or indivisible?
Section 6.
1. X promises to deliver to Y a specific
horse. Their contract contains a penal
clause that in case of non-
fulfillment, X shall pay a penalty of
P10,000. X wants to just pay that
penalty instead of delivering the
horse. Has Y the right to refuse to
accept the penalty in lieu of the
horse?
2. In the same problem, X was able to
show that Y did not suffer any
damage by X’s violation of his
obligation. Can Y still enforce the
penalty?
3. In the same problem, suppose X was
guilty of negligence in the
fulfillment of his obligation. Is X
liable for damages in addition to the
penalty?

CHAPTER 4
Section 1.
1. D (debtor) owes C (creditor) P10,000
with G as guarantor. On the due date
of the obligation, T, a third person,
offered to pay the obligation D. Can
C legally refuse to accept the
payment? How about an offer of
payment from G?
2. M (maker) issued a promissory note
for P10,000 in favor of P (payee)
who lost the note which was found
by T who demands payment from M.
M did not know that the note was
lost by P. Is M justified in paying T?
3. D owes C P10,000 which was paid
by T who demands reimbursement
from D.
(a) When is D liable to T?
(b) When is D not liable to T?
(c) When is D liable for less than
P10,000 to T?
(d) May D be liable to T for P12,000
if that was the amount paid by
him to C?
4. D owes C P10,000. Without the
knowledge of C, D in good faith paid
to T his obligation to C. Is D
required by law to prove that the
payment has been received by C in
order to be released from liability?
5. D owes C P10,000 in payment for
which C accepts a check from D. On
the ground that a check is not legal
tender, C later insists that D pay him
in cash. Is D justified in rejecting this
demand of C?
Section 2.
1. X obliged himself to deliver to Y a
specific carabao to Y on July 31. The
carabao died on July 25. Y has no
proof that X was negligent. Is X
liable to Y?
2. X obliges himself to deliver a
specific thing to Y on a certain date.
The thing was lost by X without his
fault and before he has incurred in
delay. Does it mean that X is already
exempt from liability?
3. Suppose in the preceding problem,
the thing was lost through the fault
of Z, a third person. State the effect
of the loss as far as X, Y, and Z are
concerned.
Section 3.
1. D (debtor) borrowed money from C
(creditor) evidenced by a promissory
note signed by D.
(a) What presumption arises if:
1) The promissory note is
voluntarily given by C to D?
2) It is found in the possession
of D?
(b) When will the presumption of
remission arise?
2. Suppose in the same problem, the
debt of D, aside from being
guaranteed by G, is secured by a
pledge of a certificate of shares of
stock delivered by D to C. what
presumption arises if:
(a) the debt of D is condoned by C?
(b) the certificate is later found in the
possession of D?
Section 4.
1. A, B, and C are jointly liable to D in
the amount of P15,000.
Subsequently, D assigned his credit
 to C in consideration for goods sold
by C to D. Give the effect of the
assignment.
2. Assuming the obligation of A, B, and
C is solidary, distinguish the effect of
the assignment from the first
problem.
Section 5.
1. D borrowed P50,000 as character
loan (no security) from a bank.
Despite demands for payment after
the loan fell due, D did not pay the
bank. D has a savings deposit of
P40,000 with the bank. Has the bank
the right to apply the deposit to the
payment of D’s debt?
2. D owes C P10,000 payable on
November 20. C owes D P10,000
payable on October 20. Can
compensation also take place
although the debts are not payable on
the same date?
3. Illustrate compensation which can be
set up only by one of the parties.
4. After contracting a debt in the
amount of P10,000 in favor of C, D
succeeded through fraudulent means
to make C liable to him in the same
amount. Assuming that both
obligations are now due, may the
two debts be compensated against
each other? What is the effect if the
debt of C is later annulled in court at
the instance of D?
Section 6.
1. T (third person) tells C (creditor) that
T will pay the debt of D (debtor). C
agrees. Is D released from his
obligation to C?
2. Suppose in the above problem, D
proposed to C that T would
substitute D as the new debtor to
which C agreed. Is D still liable to C
in case of insolvency of T?
3. T paid C the debt of D without
objection from the latter. What are
the rights of T>
4. Illustrate a mixed novation.
. Title II
Chapter 1
1. A and B entered into a contract
not specifically provided in the Civil Code. Is
the contract valid and binding?
2. S (seller) and B (buyer) entered
into a contract of sale. It was agreed that the
price shall be determined by T, a third person.
Can S or B refuse to be bound by T’s
determination of the price if he does not agree
with the amount thereof?
3. D owes C P20,000. Both are
house painters. It was agreed that D instead of
paying C, will paint the house of E to which E
expressed his conformity to C whose service as
painter was previously contracted by E. Has B
the right to enforce the stipulation between C
and D?
4. X made an office desk for Y. X
told Y that the latter may pay whatever amount
he would like to pay for it. When the desk was
finished Y offered to pay P2,000 but X instead
demanded P3,000, its fair value. Is X entitled to
P3,000?
 Chapter 2
Section 1 Problems
1. In a contract containing an
option period, when is the offerer not allowed to
withdraw his offer even before acceptance by
the offeree? When is the offerer allowed to
withdraw his offer even after acceptance?
2. S sold his house to B believing
that B was C. Can S legally withdraw from the
contract on the ground of mistake?
3. S agreed to deliver to B 500
cavans of rice at P600 per cavan. S delivered
only P490 cavans deliberately misrepresenting
that the delivery consisted of 500 cavans. Can B
ask the court to annul the contract on the ground
of fraud?
4. S sold to B a commercial land
for P1,000,000. S assured B that it is certain that
in two years time, the land would increase in
market value by 50% or P1,500,000. It turned
out that the market value of the land even
decreased to about P800,000. Is S liable to B for
misrepresentation?
5. Suppose in the same problem,
what S sold to B, hardware owner, are 500 bags
of cement. S had every reason to believe that the
price of cement would go down. After two
weeks, it did go down. Has B the right to have
the sale annulled?
Section 2 Problems
1. S sold to B for P100,000 a
parcel of land belonging to S located in his
hometown without specifying its exact location
and area. Is the sale valid?
2. S has several pigs. Under a
contract of sale, S binds himself to deliver a pig
to a B for P3,000 if the pig has a weight of at
least 30 kilos. State the binding effect of the
sale.
Section 3 Problems
1. S sold his fishing boat to B who
intends to use the boat for smuggling. Is the
contract of sale illegal?
2. S sold to B a specific parcel of
land for P500,000. B failed to pay. Has C the
right to have the sale declared void by the court
on the ground of absence of cause for non-
payment of the price?
3. X gave P10,000 to Y who
signed a receipt stating: “This is to acknowledge
payment by X in the amount of P12,000.” X
later complains that he received nothing from Y
for the P10,000. Is Y bound to return the
P10,000?
4. S sold to B hi car worth
P250,000 for only P200,000. There is no
question that the purchase price is grossly
inadequate. Has S the right to have the sale
annulled?
Chapter 3
 1. S (seller) and B (buyer) entered
into a contract of sale of a parcel of land. The
sale is embodied only in a private document and
not in a public instrument because it was not
acknowledged before a notary public as required
by law. Is the sale valid?
2. In the same example, what
rights, if any, are acquired by the contracting
parties?
Chapter 4
1. S sold his horse “X” to B under
a written contract of sale. What B thought S was
selling him is horse “Y”. Can S ask for the
reformation of the contract against the objection
of B who is agreeable to the sale of horse “X”?
2. Suppose in the same example, S
was intending to sell his horse “Y.” Give the
three (3) cases when he can ask for the
reformation of the contract.
Chapter 5
1. S sold to B his condominium
unit “including all its contents.” In the unit, there
is an antique chair belonging to X which X
agreed to sell to S. Is the chair to be included in
the sale of the unit?
2. X, architect, designed and
supervised the construction of the house of Y.
The parties failed to agree beforehand the
professional fee of X. how much is Y bound to
pay X?
3. Suppose in the same problem,
the professional fee was agreed upon, but it is
not clear from the written contract prepared by
X upon the request of Y whether it should be the
fixed amount of P200,000 or 6% of the cost of
construction. How much is Y liable to pay?
Chapter 6
1. D owes C P100,000. Since D
fails to pay, C expressed its willingness to accept
the car of D, with the same value, more or less,
in payment of his debt. D, in bad faith, sold the
car to X. Has C the right to ask for the rescission
of the sale?
2. F, guardian of M (minor), sold
to B a property of M with a market value of
P50,000 for only P37,000, or a difference of
more than ¼ (P12,500) of the value. If the
rescission of the sale is demanded, what possible
defense under the law can B present to avoid
rescission?
Chapter 7
1. S, a minor, sold a property to B.
Later, the sale is annulled on the ground of the
minority of S. Is S bound to return the price
received by him?
2. In the same problem, suppose S,
upon reaching the age of majority, decided to
ratify or respect the contract. Has B the right to
refuse the ratification and demand mutual
restitution of the property and the price?
 3. Again, in the same problem, parcel of land. S brought action in court to
suppose the sale was annulled by the court, what recover the land only after 20 years. Is it correct
are the rights of the parties if the property was for the court to dismiss the action because of the
lost or destroyed? long lapse of time?

a. Without the fault of B? 2. In consideration of P10,000

given by X to Y, the latter agreed to burn the
b. Through the fault of B?
house of Z. Later, X told Y to forget the
Chapter 8 agreement and to return the money. Y refused. Is

1. I, an insane person, entered into X entitled to recover from Y?

contract with M, a minor. What is the effect of 3. W (woman) agreed to stay in

ratification the house of M (man) as the latter’s live-in

a. By either; and partner for one year in consideration of the

latter’s promise to pay her P100,000 after said
b. By both, after becoming
period. W compiled with her part of the
incapacitated?
agreement but M reneged on his promise. Is W
2. D (debtor) owes C (creditor) entitled to recover from M?
P10,000. T (third person) orally promised to
Title III
assume the obligation of D. Can the promise of
T be proved by the testimony of a witness who 1. C (creditor) sued D (debtor) for

was present when T made the same?
3. S orally agreed to sell his piano
for P7,000 to B who made a partial payment of
P1,000. Later, S denied there was such a sale.
Can B enforce the sale considering that the
contract was oral and the price was more than
P500?
Chapter 9
1. S (seller) and B (buyer) entered
an absolutely simulated contract of sale of a
nonpayment of the latter’s obligation. D won the
case on a technicality (i.e., not on the merits).
Nevertheless, when C asked payment again, D
paid him. Now, D demands the return of what he
has paid claiming, he should not have paid C
since he had no more obligation to C under the
law. Decide.
2. M, a minor, bought a bicycle for
P2,000 from N, who is not a minor. Under the
law, the contract is voidable because M is
incapacitated to give consent because of his
minority. Give the situation by reason of which
M cannot recover the P2,000 from N.