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A gave B a parcel of land on condition that B will pass the CPA Exam on May,
this year. B did not pass the CPA Exam.
Question
Is B liable to remand the said fruits, just because he didn’t fulfill the the said
condition?
Answer
Ernesto and Michael are friends. Since Ernesto is concerned with Michael’s
frequent visits to the casino, he gave the latter a brand new car with the condition that
Michael will never go to any casino anymore. After two week, Michael went to the
nearest casino, itching to spend some coins on the fruit machine.
Question
Did the act of Michael in going to the casino extinguish Ernesto’s obligation to
keep the car in Michael’s possession?
Answer
(1)First infractor known- one party violated his obligation therefore the other
party also violated part of hisobligation. Liability of first infractor must then be reduced
(2)First infractor cannot be determined- One party committed violation towards his
obligation followed byanother, indeterminate first infractor. Contract shall then be
diminished and both parties will have ot beartheir own damages.
“The rules are deemed just. The first one is fair to both parties because the second
infract or, though they would derive some advantage by his own act or neglect. The
second rule is likewise just, because it is presumed that both parties at about the same
time tried to reap some benefits.” (Report of the Code Commission)
Example
S sold his television set to B. The agreement is that the set shall be delivered on
October 1 at the house of B and payment shall be made by B upon delivery. S did not
deliver the set on October 1 in spite of a demand made by B. Five days later, S delivered
the set but B incurred in delay in paying the purchase price.
Question