Directions: Answer the following cases concisely in 3 to 5 sentences.

1. Seller sold to Buyer on July 5, 2020, a horse named Silver to be delivered on July 20,
2020. However, on July 15, 2020, Seller sold again and delivered the horse to Tayron.
Who has a better right to Silver? Reason.

On July 5, 2020, Buyer only possesses personal rights against Seller and that is to enforce
the delivery of Silver on July 20, 2020. On the other hand, Seller sold and delivered Silver to
Tayron on July 15, 2020. On this day, Tayron Acquires real rights over Silver which is
enforceable against the world. Therefore, Tayron has better rights to Silver than Buyer since
he had become the owner of the thing upon delivery of it, based on the facts that it has been
delivered first to Tayron.

2. Seller sold to Buyer a specific refrigerator which Seller agreed to deliver not later
than July 31, 2020, Seller did not deliver the refrigerator on said date. Is Seller guilty of
legal delay? Reason.

No, Seller is not guilty of legal delay because Buyer did not demand the Seller to deliver
the refrigerator on the said date thus, it is presumed that he is giving the debtor, an extension
of time, and the latter is not liable for damages. This is under Art. 1169 “Those obliged to
deliver or to do something incur in delay from the time the obligee judicially or
extrajudicially demands from them the fulfillment of their obligation.” Demand is a must
because the general rule is “no demand, no delay.” Thus, the non-delivery of the seller on the
said date will only fall to ordinary delay.

3. Lessor issued a receipt that Lessee has paid the rent for the months of March 2020.
Can Lessor still collect from Lessee the rents for January and February 2020? Reason.

No, Lessor cannot collect the rents for January and February 2020 from Lessee. This is
following Art. 1176 which states that "The receipt of the principal by the creditor without
reservation concerning the interest, shall give rise to the presumption that said interest has
been paid." In the given case, as Lessor issued a receipt for the month of March, it is
presumed that the rents for the months of January And February had already been paid.
However, this presumption is merely disputable.

4. Debtor borrowed P20,000 from Creditor payable after one year. Is Debtor liable to pay
interest? Reason.
This will fall under Article 1175, which states that usurious transactions shall be
governed by special laws. Based on the facts, the debtor will not be liable for the payment on
interest because there has been not expressly stipulated in their agreement. The obligation of the
debtor to pay interest will only exist if there is a written agreement with a specific rate for
interest, yet it is invalid for the no agreement on interest per se.