5 February 2019 – OBLI Questions/Problems on Chapter 1 (Arts.

1156-1162)
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1. Under a building contract, Engr. So agreed to construct the house of Mr. Rey for 6 months. On
the other hand, Mr. Rey agreed to pay Engr. So P3M after the construction is finished. Point out the
elements of the obligation in this legal scenario.

The active subject is Mr. Rey, since he has the right to demand the performance of the
construction. The passive subject is Engr. So, who is bound to the fulfillment of the obligation.
The prestation is to construct a house for Mr. Rey, while the juridical tie refers to the building
contract.

However, Mr. Rey can also be the passive subject, and Engr. So as the active subject, if the
prestation was to pay Engr. So P3M. Engr. So can demand for the performance of the
prestation after he is finished with the construction, whereas, Mr. Rey is bound to give Engr. So
the payment amounting to P3M. The juridical tie remains the same which is the building
contract.

2. Christian and Carina entered into an agreement. For a consideration of P200,000.00 to be

given by Carina to him, Christian agreed to attend mass for four consecutive Sundays. Is this
obligation legally enforceable?

YES – This is legally enforceable, considering the prestation, which is paying the amount of
P200,000 if Christian agreed to attend mass for four consecutive days. Christian, therefore, can file
an action for specific performance against Carina, in case of non-compliance with her obligation to
pay the consideration.

3. On November 15, 2016, Derek entered into an agreement with Caitlyn. Among other things,
the parties agreed that: (a) Caitlyn will lend P100,000.00 to Derek who promises to pay the loan on
January 15, 2019; and, (b) In case of non-payment, Derek will render free service as a servant to
Caitlyn until such time that Derek is able to raise the money with which to pay his loan to Caitlyn . Is
this agreement legally enforceable?

NO – This agreement is not legally enforceable. The terms and conditions stipulated by the
contracting parties are contrary to law, morals, good customs, public order or public policy. Thus,
rendering the agreement void and unenforceable.
4. Junbi borrowed P500,000.00 from April due for payment on 15 January 2019. On 15
December 2018, three men robbed Junbi’s pawnshop resulting in loss to personal property and cash
totaling to P1.2 million. Part of the cash was already intended as payment for April’s credit when it falls
due. In addition, Jewel was suffering from financial reverses, and he was short of cash even for his
family’s current needs. Under the facts, will Junbi be legally justified in refusing to pay his debt to April
on 15 January 2019.

NO - Junbi will not be legally justified in refusing to pay his debt to April. The mere inability to
comply with one’s obligation does not extinguish one’s obligation. Moreover, what Jubi lost was not
a determinate thing, therefore he cannot put up a defense of using the doctrine of fortuitous event
to evade his obligations. Therefore, he is still bound to pay his debt to April on 15 January 2019.
5 February 2019 – OBLI Questions/Problems on Chapter 1 (Arts. 1156-1162)
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5. Distinguish between negotiorum gestio and solutio indebiti. What are the other kinds of quasi-
contracts enumerated under Articles 2164 to 2175 of the New Civil Code?

Negotiorum Gestio – A voluntary management of the property or affairs of another without the
consent of the other.

Solutio Indebiti – A juridical relation which is created when something is received when there is no
right to demand it, and it was unduly delivered through mistake.

“Art. 2164. When, without the knowledge of the person obliged to give support, it is given by
a stranger, the latter shall have a right to claim the same from the former, unless it appears
that he gave it out of piety and without intention of being repaid. (1894a)”
“Art. 2167. When through an accident or other cause a person is injured or becomes
seriously ill, and he is treated or helped while he is not in a condition to give consent to a
contract, he shall be liable to pay for the services of the physician or other person aiding him,
unless the service has been rendered out of pure generosity.”
“Art. 2175. Any person who is constrained to pay the taxes of another shall be entitled to
reimbursement from the latter.
6. Don, a merchant-farmer, was the owner of a ten-hectare land planted to lanzones. On 18
December 2018, Don left for a two-month pleasure trip to the U.S. While Don was on vacation in the
U.S., typhoon “Babing” devastated the entire Philippines including the land owned by Don. Before the
typhoon, however, reached the Philippine area of responsibility, Conan, a conscientious neighbor and
friend of Don, employed six (6) farmers to harvest the lanzones planted on the land of Don. As a
result, Conan incurred expenses amounting to P60,000.00. The employment of the farmers and the
harvest of the lanzones from the land of Don was undertaken by Conan without the approval of Don as
the latter was still in the U.S. Upon the arrival of Don in the Philippines from his trip, may he be
compelled by Conan to refund the P60,000.00 expenses incurred?

YES – he may be compelled by Conan to refund the P60,000.00 expenses incurred. The situation
befalls upon the principle of Negotiorum Gestio, where Conan did a voluntary management of
Don’s land without his permission or consent. His obligation arises from the principle of quasi-
contracts, therefore making him liable to reimburse Conan.

7. You went to the bank and let the teller change your P1,000.00 bill. Because of the negligence
of the teller, she erroneously gave you 11 pieces of P100.00 bills. Can you be compelled to return the
excess considering the negligence of the bank’s teller?

YES – I can be compelled to return the excess. The situation befalls on one of the principles of
quasi-contracts which is Solutio Indebiti. Once we receive with no right to demand or it was unduly
delivered through mistake, we are obliged to return it.
5 February 2019 – OBLI Questions/Problems on Chapter 1 (Arts. 1156-1162)
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8. While playing baseball with his friends, Jay broke the glass window of Kay, his neighbour. The
breakage was not made on purpose. It was only an accident. Can Kay hold Jay liable for the
damage?

YES – Kay can hold Jay liable for the damage. Since the situation befalls on Culpa Aquiliana, Jay
caused damage to Kay’s property, giving rise to an obligation to pay for the damage done, there
bring fault and no pre-existing contractual relation between them.

9. Juan ordered ten-year old Pedro to climb a high and slippery santol tree, and promised to give
the boy two kilos of the santol he will be able to pick. While climbing the tree, however, Pedro’s foot
slipped. As a result, Pedro fell from the tree to the ground and died instantaneously. Will Juan be
liable in damages for the death of Pedro?

YES – Juan will be liable in damages for the death of Pedro. Under the facts, Juan’s negligence
was the proximate cause of Pedro’s death. Had he not told Pedro to climb, knowing the Santol tree
was high and slippery, he would not be liable for damages.

10. What does civil liability ex delicto include? Illustrate by example.

Ex delicto means every person criminally liable is also civilly liable. Suppose that A was over
speeding and bumped B’s car, resulting to B’s death. A is criminally liable for reckless imprudence,
and is also civilly liable for negligence in driving, making him liable for damages.

11. 1980 Bar Problem: “C”, a Filipino resident of the U.S., sent to his father “D” in Manila $500.00
through “X” Bank which had a branch in Manila. Due to mistake of the employees of the Bank, “D” was
paid $5,000.00 instead of $500.00. Upon discovery of the mistake, the Bank demanded from “D” the
return of the P4,500.00. “D” refused and the Bank sued him. Is the Bank entitled to recover from “D”?

YES – The bank is entitled to recover from D. The situation befalls on one of the principles of
quasi-contract, which is Solutio Indebiti. D is obliged to return what has been unduly delivered
through mistake. As long as the bank’s right has not prescribed yet, they can still recover.

12. Will the death of the accused before final judgment likewise extinguish his civil liability arising
from the crime?
YES – The death of the accused before final judgment can extinguish his civil liability arising
from the crime. Under Article 89 of the Revised Penal Code, death extinguishes criminal and
civil liability.