Obligations and Contracts

Academic Year 2017-2018

Midterm Examinations

Please read and understand each question carefully. Furthermore,

please state any assumptions that you have made or may need to make
to fully answer the questions. You have two (2) hours to answer all
questions. As Fr. Joaquin Bernas, SJ once said, “please write legibly
or may God have mercy on your soul.”

1. On 01 January 2007, Lysa Arryn donated a parcel of land located

in Makati to her nephew, Bran Stark. Margaery Tyrell, a lawyer
authorized to notarized documents in the City of Makati, notarized
the deed of donation. Bran accepted the donation from his aunt
and started to occupy and live on the land. In fact, Bran even built
a two story house on the aforementioned parcel of land. On 15
March 2018, Robert Arryn, the son of Lysa and the cousin of Bran,
filed a case with the court to recover the land stating that the
donation was invalid as Atty. Tyrell’s notarial commission had
expired on 31 December 2006.1 You have been hired as the lawyer
of Bran Stark. Identify the issue/s and give the appropriate legal
advice (15 points).

2. Steve Rogers and Tony Stark, two friends, entered into an

agreement with Johann Shmidt, a world-renowned architect, to
design Avengers Tower for One Million Five Hundred Thousand
Dollars (US$ 1,500,000.00). The agreement between Johann
Shmidt and Steve Rogers and Tony Stark states that Johann
Shmidt has the option of paying Steve Rogers and Tony Stark the
amount of One Million Dollars (US$ 1,000,000.00) instead of
rendering the architectural services.

Johann Shmidt opted to pay Steve Rogers and Tony Stark the One
Million Dollars (US$ 1,000,000.00) instead of performing the
architectural services because of an offer from Hydra Incorporated
to build their headquarters in Paris, France for Three Million
Dollars (US$ 3,000,000.00). Steve and Tony refused to accept the
One Million Dollars (US$ 1,000,000.00). Identify the issue/s and
decide (20 points).

3. The Resistance Power Corporation, represented by its President,

Leia Organa, entered into an agreement with New Republic
Construction, Inc. to build a solar power farm in Calatagan,
Batangas. New Republic Construction agreed to complete

1 A donation involving real property must be contained in a public document.

 construction of the Solar Farm within five hundred (500) days.
The contract between the Resistance Power Corporation and New
Republic Construction provided that New Republic Construction
could sub-contract any part of the works needed to a third party
provided that New Republic Construction would be held liable for
any damages or delay that may be caused by the third party
subcontractor.

To keep construction costs down, New Republic Construction hired

First Order Engineering Services, Inc. to install the solar panels at
the Solar Farm while it continued working on other areas of the
solar farm. Unfortunately, a typhoon hit the area destroying the
solar panels being installed by First Order Engineering and
delaying delivery of the solar farm by one hundred fifty (150) days.
Consequently, the Resistance Power Corporation made a demand
on New Republic Construction for delay. New Republic
Construction denied any liability and said that since First Order
Engineering was doing the work, it should be the one who should
be held liable. The Resistance as its lawyer has hired you. Identify
the issue/s and provide the necessary legal advice. (20 points).

4. Michelle agreed to lend Crizette One Million Pesos (Php

1,000,000.00) payable in ten (10) years in with an interest of ten
percent (10%) per annum. They also agreed that the loan was
subject to an escalation clause consisting of an additional four
percent (4%) per month in the event that Crizette is not able to pay
any installment on the agreed due date (December 29 of each
year). Crizette is only able to pay the sixth (6 th) installment on
January 2 due to the holiday season. Consequently, Michelle
invokes the escalation clause and charges Crizette the additional
four percent (4%) per month. Decide with reason. (10 points).

5. Mr. Steve Rogers is a collector of rare vintage fountain pens. He

engaged the services of Mr. Donald Blake to repair and restore one
of his fountain pens, which was valued at no less than Fifteen
Thousand Dollars ($15,000) and was a gift from Peggy Carter, the
girlfriend of Mr. Rogers. Mr. Blake proceeded to repair the
fountain pen but was not able to do so because of his unfamiliarity
with the mechanism. After several months of asking about the
pen, Mr. Blake finally returned the pen to Mr. Rogers in pieces
through a certain Ms. Natasha Romanov, who claimed to be the
authorized representative of Mr. Rogers. Consequently, Mr. Blake
made a claim against Mr. Rogers for the payment of the services
rendered. As the lawyer of Mr. Rogers, identify and explain all the
 possible legal issues and give the necessary legal advice so that Mr.
Rogers can take the necessary actions. (15 points).

6. Obi Wan Kenobi hired Watto to supply the Jedi Order with
Corusca gems mined by Tendrando Industries. The Corusca gems
were needed for the construction of lightsabers for the Jedi Order.
A provision in the agreement stated that Watto was to supply the
Jedi Order as long as he wanted and as long as the gems were
available from Tendrando Industries. Mace Windu had second
thoughts about the contract negotiated by Obi Wan Kenobi and
has hired you as the lawyer of the Jedi Order. Identify the issue/s
and provide the necessary legal advice. (10 points).

7. ABC Corporation owned a parcel of land in the City of Taguig.

ABC Corporation decided to donate the aforementioned land to
XYZ Corporation on the condition that a convention center shall be
built on the said land by XYZ Corporation. XYZ Corporation,
however, sold the same land to SMP Corporation. In the contract
of sale between XYZ Corporation and SMP Corporation, XYZ
Corporation included a condition that a portion of the land should
be used by SMP Corporation as a convention center. SMP
Corporation proceeds to build a shopping mall complex on the
parcel of land. A small portion of the shopping mall complex is
developed by SMP Corporation as a convention center. ABC
Corporation now questions the sale of the XYZ of the land. Decide
with reasons. (10 points).

Bonus:

1. What is the title of the latest Star Wars film?

2. What is the name of the sister of the Black Panther?
3. Who is Luke Skywalker’s sister?
4. What is the color of the lightsaber used by Rey?
5. What is the name of Charlie Brown’s dog?