CHAPTER 6 RESCISSIBLE CONTRACTS

III. Problems

Explain or state briefly the rule or reason for your answer.

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 more

than 1/4 (P12,500) of the value. If rescission of the sale is demanded, what possible
defense under the law can B present to avoid rescission?

CHAPTER 7 VOIDABLE CONTRACTS

III. Problems

Explain or state briefly the rule or reason for your answer.

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, suppose the sale was annulled by the court, what
are the rights of the parties if the property was lost or destroyed?

a) Without the fault of B?

b) Through the fault of B?

CHAPTER 8 UNENFORCEABLE CONTRACTS

III. Problems

Explain or state briefly the rule or reason for your answer.

1. I, an insane person, entered into a contract with M, a minor. What is the effect of
ratification
a) By either; and
b) By both, after becoming incapacitated?
2. D (debtor) owes C (creditor) P10,000. T (third person) orally promised to
assume the obligation of D. Can the promise of T be proved by the testimony of a
witness who 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 VOID OR INEXISTENT CONTRACTS

III. Problems

Explain or state briefly the rule or reason for your answer.

1. S (seller) and B (buyer) entered an absolutely simulated contract of sale of a

parcel of land. S brought action in court to recover the land only after 20 years. Is it
correct for the court to dismiss the action because of the long lapse time?

2. In consideration of P10,000 given by X to Y, the latter agreed to burn the house

of Z. Later, X told Y to forget the agreement and return the money. Y is refused .
Is X entitled to recover from Y?

3. W (woman) agreed to stay in the house of M (man) as the latter’s live-in partner
for one year in consideration of the latter’s promise to pay her P100,000 after said
period. W complied with her part if the agreement but M reneged on his promise.
Is W entitled to recover M?

ANSWERS:

1. Yes, because the car was under litigation between D and C. Also, D comes to a
fraud because he sell the car to X without the knowledge of C. Under Article 1381
par. 3 and 4, those undertaken in fraud of creditors and those things which is the
car under litigation if they have been entered into by the defendant without the
knowledge and approval of litigants. Contracts undertaken fraud of creditors which
is the C may be valid for rescission.

2. No,because the ratifier indicates an intention to be bound to the provisions of the

contract. The ratifier was S. The ratification was implied because there is a reason
which renders the contract voidable and the minor comes to it age of majority. It
was under Article 1393 that with knowledge of the reason which renders the
contract voidable.