Reyes, Monique Anne R.

A-234
III. Problems
Explain or state briefly the rule or reason for your answer.
1. S sold his fishing boat to B who intends to use the boat for smuggling. Is the contract
of sale illegal?
-As stated in the article 1351, the motive does not affect the validity nor the
existence of the contract. However, in this case, there are two possible scenarios
that can be considered. The contract of the sale is void if the seller knows the
purpose of the buyer in buying that boat. Besides, it can still be considered valid if
the seller does not have an idea about the purpose of the buyer in buying the boat.
2. S sold to B a specific parcel of land for P500,000. B failed to pay. Has C the right to
have the sale declared void by the court on the ground of absence of cause for non-
payment of the price?
-No, because it is not C’s responsibility to declare the contract void. Due to the
fact that C didn’t exist at the time of the transaction of the contracting parties. In this
case, C is only a third person, which does not have any concern in the fulfillment of
the obligation on the contract.
3. X gave P10,000 to Y who signed a receipt stating: “This is to acknowledge payment
by X in the amount of P 12,000.” X later complains that he received nothing from Y
for the P 10,000. Is Y bound to return the P 10,000?
According to Article 1354, even though the cause was not stated in the contract,
the law presumes that a service was received by X from Y and that the same was
lawful. But, if X claims otherwise, then he should prove his accusations and that is
when Y bound to return the P10,000 of X.
4. S sold to B his car worth P 250,000 for only P 200,000. There is no question that the
purchase price is grossly inadequate. Has S the right to have the sale annulled?
No, since the contract of sale is valid, although the price is grossly inadequate.
The transaction is not a sufficient ground for the cancellation of the contract since
there was a consent by the contracting parties about the price of the car. It can only
be annulled if it was sold through fraud, mistake or undue influence.