1. Corona bound himself to deliver his only house to Covid on April 19, 2020.

On said date, Corona

failed to deliver the said house.

Question: Is Corona in legal delay? If yes why? Discuss. If no why? Discuss.

No. Legal delay means the failure to perform an obligation on time which failure constitutes a
breach of obligation. It is only considered as an ordinary delay since there is no demand from
Covid that such thing has to be delivered on the specific date.

2. Ben agreed with Dan that the former will sell his original Samsung cell phone to the latter for a
discount of 50% of the selling price. Delivery and payment will be on April 1, 2020. On said date,
Ben deliberately changed said cell phone with an imitation.

Question:

1) What kind of fraud was employed? Why?

It was a CAUSAL FRAUD since Ben intended to replace the object. However, it can also be
incidental in a case that the contract is still valid.

2) What is the remedy of Dan, if any? Explain.

Dan can sue Ben for moral damages and breach of contract. Ben is also liable for damages
because he intently deceived Dan thus, making him pay for the cosequential damages he had
committed himself into.

3. Kit was a BSCA student of Mang Kanor College when he was shot by Rick, a security guard on
duty at the school premises. Kit was rushed to nearby hospital for treatment. Kit after the
incident filed a case against the school and its officials for damages.

Question:

a) Is the school liable? Why? Explain with basis.

in loco parentis is the term used to describe to a teacher or the officials of the school as a second
parent of a student while within the school premises. The defendant, which is the guard, owes a
duty to the plaintiff, the student, which is to protect Kit as his main responsibility. However, the
security guard failed to comply that duty which resulted to damages towards the plaintiff.
(https://www.alllaw.com/articles/nolo/personal-injury/injured-school-liability-immunity-
lawsuits.html)
4. Mang Johnny and Homer entered into a contract of agency. And one of the stipulations in the
said contract is that if Mang Johnny commits fraud against Homer in the future regarding the
performance of their contract, Mang Johnny will not be liable to Homer.

a) Is the agreement valid. Why?

The agreement is not valid because according to Article 1171, responsibility arising from fraud is
demandable in all obligations. Any waiver of an action for future fraud is void. The law presumes
that the agreement will just encourage the perpetration of fraud since the obligor knows that
even he commits the said mistake, he would not be liable for it resulting for the obligation to be
illusory.

5. On January 20, 2020, Francis bound himself to give his only car to Alec if the latter passes the
April 2020 CBLE. Francis*should be Alec passed the CBLE. From January 20, 2020 up to April
2020, Francis introduced some improvements on the said car like the repainting of the entire
body due to deterioration, change of major engine parts due to oil leakage, and putting leather
seat cover.

a) Who has the right over the improvements? Why?

Since Alec passed the CBLE already and the condition is met, Francis is bound to complete his
duty which is to deliver the car to Alec. Upon the completion of the said duty, Alec will now have
the rights over the thing even its accessories and accessions since Francis just did his duty as a
good father of the thing upon the delivery. These answers are based on Article 1163 which says
that every person obliged to give something is also obliged to take care of it with the proper
diligence of a good father of a family, unless the law or the stipulation of the parties requires
another standard of care and Article 1164 that says that the creditor has a right to the fruits of
the thing from the time the obligation to deliver it arises. However, he shall acquire no real right
over it until the same has been delivered to him.

6. On October 12, 2019, Ben obtained a loan from Francis in the amount of P1M due on March 16,
2020. Subsequently, they both forgot the maturity date of the obligation and Ben paid it on
February 14, 2020.
Can Ben recover what he has paid? Explain.

Article 1231 states that obligations are extinguished:

(1) By payment or performance;
(2) By the loss of the thing due;
(3) By the condonation or remission of the debt;
(4) By the confusion or merger of the rights of creditor and debtor;
(5) By compensation;
(6) By novation.
 Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a
resolutory condition, and prescription, are governed elsewhere in this Code.
And since the obligation has been extinguished upon the payment, he can no longer recover it.
However, it is contrary to ARTICLE 1188 which points out that the creditor may, before the
fulfillment of the condition, bring the appropriate actions for the preservation of his right. The
debtor may recover what during the same time he has paid by mistake in case of a suspensive
condition.

7. Arthur obliged himself to deliver to Francis 100 bottles of French perfume. However, despite
diligent efforts of Arthur to deliver all, he was able to deliver only 98 bottles because of import
restrictions.

Question: Is the obligation of Arthur extinguished? Explain with legal basis.

Article 1234 states that if the obligation has been substantially performed in good faith,
the obligor may recover as though there had been a strict and complete fulfillment, less
damages suffered by the obligee. Also, Article 1235 points out that when the obligee
accepts the performance, knowing its incompleteness or irregularity, and without
expressing any protest or objection, the obligation is deemed fully complied with.
Therefore, as stated and if Francis accepts the delivery, the obligation is deemed
extinguished.

8. Caren mortgaged her property to Francis in the amount of P200,000.00. Alfred, a third person,
pays the whole mortgage debt of Caren to Francis without the knowledge of Caren. He then asks
that Francis assign to him (Alfred) the former’s rights as mortgagee.

Question:

a. If Francis refuses, can Alfred compel him? Why?

No. The law clearly states that whoever pays on behalf of the debtor without the knowledge or
against the will of the latter, cannot compel the creditor to subrogate him in his rights, such as
those arising from a mortgage, guaranty, or penalty (Article 1237).

b. If Francis wants to make the assignment, can Alfred be subrogated to Francis’ rights as
mortgagee? Explain.
 Since it is stated in the case that the payment is done without the knowledge of the debtor, the
subrogation can’t be conventional but can be legal. Article 1302 states that it is presumed that
there is legal subrogation:
(1) When a creditor pays another creditor who is preferred, even without the debtor’s
knowledge;
(2) When a third person, not interested in the obligation, pays with the express or tacit approval
of the debtor;
(3) When, even without the knowledge of the debtor, a person interested in the fulfillment of
the obligation pays, without prejudice to the effects of confusion as to the latter’s share.

9. Andy, a minor, is indebted to Ben for the sum of P10, 000.00. While still a minor, Andy pays Ben
the whole amount of P10, 000.00.

a. Is the payment made by Andy to Ben valid? Why?

Yes. Even if Andy is a minor, he is still monetarily capacitated to fulfill his duty.

b. Supposing that at the time of payment, Andy is between the ages of 18 and 21 and Ben
spends in good faith the amount paid, may Andy recover what he paid? Explain.

No. The law clearly states under Article 1427 that when a minor between eighteen and twenty-
one years of age, who has entered into a contract without the consent of the parent or guardian,
voluntarily pays a sum of money or delivers a fungible thing in fulfillment of the obligation, there
shall be no right to recover the same from the obligee who has spent or consumed it in good
faith. Since the case did not mention if he asked for a consent from his guardian, it is concluded
not. Also, Andy voluntarily paid the amount.

10. Is the creditor bound to accept check? Explain.

Yes because it is an example of tender of payment. And under Article 1256, if the creditor to
whom tender of payment has been made refuses without just cause to accept it, the debtor
shall be released from responsibility by the consignation of the thing or sum due.

Consignation alone shall produce the same effect in the following cases:

(1) When the creditor is absent or unknown, or does not appear at the place of payment;

(2) When he is incapacitated to receive the payment at the time it is due;

(3) When, without just cause, he refuses to give a receipt;

(4) When two or more persons claim the same right to collect;

(5) When the title of the obligation has been lost. (1176a)