Ryan Capistrano

AC181

MID-TERM EXAMINATION
RELEBUS

PROBLEMS - (8 points each)

1. Anna sold a Lacoste bag to Bea for P 5,000. However, at the time of sale Anna is not yet
the owner of the bag. Is there a valid sale? Explain fully.
Answer:
No, sale by a person not the owner of thing being sold is not consider as sale according
to the general rule. The buyer will not acquire a title of the thing being sold because the
title of the bag is not transferred as the person selling it is not the owner.

2. Carrie sold to Danny her piano for P15,000, payable at P10,000 upon delivery and the
balance of P5,000 within 30 days. Danny failed to take delivery and pay the price. Carrie
was forced to sell the piano to Ernie for P12,000. Can Carrie hold Danny liable for the
difference? Explain fully.
Answer:
Yes, Carrie can demand payment for damages to Danny for Non-acceptance of the
goods being sold. Carrie was forced to sell the piano for less than the agreed price from
the original buyer. Danny was at fault for the difference of the agreed price and the price
that Carrie received.
3. Charlie agreed to deliver 100 sacks of rice to Delta at the end of the week. On the date
of delivery, Charlie delivered only 50 sacks of rice. May Delta refuse to receive delivery?
Explain fully.
Answer:
Yes, because the quantity is less than what they have agreed upon. Delta has the right
to refuse or accept the goods being delivered. When he accept it, it must be on the
contract rate or in proportion from what has been agreed upon and what has been
delivered.
4. Eddy sold his car to Frodo for P350,000 to be delivered on April 30, 2020. On delivery
date, Frodo refuses to accept delivery without just cause. What are the remedies of
Eddy?
Answer:
When Frodo refuses to accept the car being sold to him, Eddy may maintain an action
against him for damages for non-acceptance. This is because Eddy refuses without any
lawful cause.
5. Gary sold his house to Heidi for P1MM with right of repurchase. May Heidi lease the
property knowing that Gary will exercise his right of repurchase? Explain fully.
 Answer:
No, because according to the right in conventional redemption, Gary has the right to
repurchase the house for at least 4 years if there is no indicated for the period of
redemption. Gary might return the price of sale and other expenses made when Heidi
leased it to others.

6. Sally sold to Barnie a piece of land. Subsequently Sally sold the same land to Charlie
who bought it in good faith and took possession of the land. Who has better right to the
land? Discuss fully.
Answer:
The person who has better right to the land is Charlie because he is the first possesor of
the land and the problem is silent whether did Barnie register the land in the register of
deeds. According to the rules of preference in real property for double sale, the first
registrant in good faith has the right over the property which is absent in the problem.
The first possessor of the land in good faith is Charlie that’s why he has the better right
than Barnie.
7. Mario sold his horse to Noli. No date was stipulated for the delivery of the horse. While
the horse was in the possession of Mario, it gave birth to a colt. Who has the right to the
colt? Explain fully.
Answer:
Mario has the right the colt as he is still the owner of the horse. According to the rule,
transfer of ownership is being perfected when the delivery of the goods have been done.
The owner of the goods have the right to the fruits of the goods.

8. Oscar sold his car to Paul. Before the delivery date, the car suffered a few scratches and
bumps. Who shall be liable for such damages? Explain fully.
Answer:
As the ownership has not been transferred yet to Paul, Oscar is liable for the damages
for the car due to fortuitous event. This is because the risk is borne by the owner of the
thing at the time it loss due to a fortuitous event.
9. Renan sold a house to Sonny. After the sale, Sonny discovered that the house was in
danger of collapsing due to dilapidated posts. Is Renan liable? What is the remedy of
Sonny, if any? Explain fully.
Answer:
Yes, because the defect was hidden at the time of sale and it was only discovered after
the sale was perfected. The defect is serious and important as the house will collapse
due to dilapidated posts. Sonny may ask for rescission or reduction of the price within 6
months from the time of the transfer own ownership is perfected.
10. Dante issued a special power of attorney authorizing Essa to sell his two cars. However,
Dante instructed Essa to sell only one of the cars. Essa sold the two cars to Fidel who
 was not aware of the instruction of Dante to Essa. Is Dante bound by the sale made by
Essa? Explain fully.
Answer:
Yes
11. Isko leads Jake to believe that Kathy is his agent. But Kathy is not really his agent. Later
Jake transacted with Kathy believing the latter to be the agent of Isko. What kind of
agency was created? Will Isko be liable for the acts of Kathy as his agent? Explain fully.
Answer:
Agency by estoppel was created as Isko did intentionally allowed Jake to believe that
Kathy is his agent. Isko is estopped from denying the authority of Kathy so as to prevent
unjust enrichment. He is now liable for the acts of Kathy.
12. Glenn appointed Henry as his agent. The authority of Henry did not authorize him to
appoint a substitute but it also did not prohibit him from appointing one. Can Henry
appoint a substitute? Explain fully.
Answer:
No, as Glenn did not specify her authority to Henry to have a co-agent or substitute.
Henry can only have an authority to have a substitute when Glenn permit him to do so.
He must have the apparent authority to do such action in order for him to have a
substitute.
13. Andy learned that Ben was selling his car. Without authority of Ben, Andy sold the car in
his name to Carlo. Is the sale of the car valid? Is it enforceable? Explain fully.
Answer:
The sale of car is invalid as Andy acted on his name when he does not have an authority
to sell the car. The ownership will not be transferred to Carlo as the name of Ben is still
register as the owner of the car. The sale will be void and Carlo might sue Andy for using
selling the car on his own name even if he is not the owner of car being sold.