LAW ON SALES ASSIGNMENT

5 Problems (5 points each):

1. D borrowed P30,000.00 from C. To secure the debt, D pledged his ring, wristwatch,
and necklace. Before the debt could be paid, C died leaving X, Y and Z as heirs. By
agreement among the heirs who inherited the credit, the ring would secure the share of
X of the credit, the wristwatch the share of Y, a necklace the share of Z. Later, D pays X
P10,000.00. Can D demand the extinguishment of the pledge of the ring?
 No. D cannot demand the extinguishment of the pledge of the ring for Art. 2089
of the New Civil Code of the Philippines provides that a pledge or mortgage is
indivisible, even though the debt may be divided among the successors in
interest of the debtor or of the creditor. Therefore the creditor's heir who received
his share of the debt cannot return the pledge or cancel the mortgage, to the
prejudice of the other heirs who have not been paid.
2. X, at Y’s request, executed a Real Estate Mortgage (REM) on his (X’s) land to secure
Y's loan from Z. Z successfully foreclosed the REM when Y defaulted on the loan but
half of Y's obligation remained unpaid. May Z sue X to enforce his right to the
deficiency?
 No. Under the law Z may not sue X to enforce his right to the deficiency because
X is not Z’s debtor.
3. A shops at supermarket, buys groceries worth P1,000, and pays with an unfunded
check and goes home with the groceries. The check is dishonored for lack of funds. Is
there estafa?
4. Please refer to number 3, if the grocer, knowing A, allows him to pay on a later date,
granting then only credit on the goods, and after a few days, A pays with a check that
eventually bounces. Is there estafa?