POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Obligations and Contracts

1. A mere “yes” or “no” answer, without any corresponding explanation or discussion, may not
be given full credit.
2. Answer the question briefly, directly and with legal basis.

I.

Jerwin promised to give his grandson a car if the latter will pass the CPA Licensure
examinations. When his grandson passed the said examinations, Jerwin refused to give the car
on the ground that the condition was a purely potestative one. Is he correct or not? (20%)

II.

Aivan sued Ivana for damages because the latter had failed to deliver the antique

Marcedes Benz car Aivan had purchased from Ivana, which was—by agreement—due for
delivery on December 31, 1993. Ivana, in his answer to Aivan’s complaint, said Aivan’s claim has
no basis for the suit, because as the car was being driven to be delivered to Aivan on January
1, 1994, a reckless truck driver had rammed into the Mercedes Benz. The trial court dismissed
Aivan’s complaint, saying Ben’s obligation had indeed, been extinguished by force majeure.

Is the trial court correct? (20%)

a) What is Fortuitous Event? (5%)

b) When is a thing loss? (5%)

III.

Benjamin went to a store to buy a bar of chocolate worth P225.00 only.  He gave the

vendor, Ben Jamming, a P500-peso bill. The vendor gave him the tub plus P375.00 change.
Was there a discount or oversight?   As the knowledgeable friend of Ben Jamming, what would
be your advice to him?  (5%)
How is this situational relationship between Benjamin and Ben Jamming denominated? 
Explain. (5%)
 IV.

a) What is Dacion en pago? (5%)

b) What is Compensation? (5%)

c) What is Pactum Commissorium? (5%)

d) What is Joint Obligation? (5%)

e) What is Donation mortis causa? (5%)

f) What is Negotiorum Gestio? (5%)

V.
a) What is Consent? (5%)
b) What are the elements of a valid contract? (5%)

Prepared by: Atty. Anne Lorraine Diokno