Exercises 4: Situational questions.

Every answer must be supported with a

legal basis.

1. A owes B P500,000.00. It was agreed that the P200,000.00 has to be

given to X as B is likewise indebted to him. Can X demand payment the
P200,000.00 from A? (10 points)

 Yes , X can demand payment of 200,000 pesos to A for the condition of

issuance falls under the second paragraph of Article 1311 , if a contract
contains some provisions in favor of a third party , he, may request in
fulfilling the obligation . Although the contract concerns only the initial
parties , there is an agreed stipulation that states that the third party , X ,
is involved and will have rights over the obligation of A.

2. A offered for sale to B a particular car for Php2 Million. B accepted the
offer but for Php1.5 Million only. Are the parties bound by their offer and
acceptance? (10 points)

 The parties are not bound by their offer and acceptance because there is no
acceptance. As there is no acceptance, the parties are not obliged by their
offer and acceptance. The consent is given by the meeting of the offer and
acceptance on the object and the cause that make up the contract,
according to Article 1319 of the Philippine Civil Code. B's consent is only
qualified consent, which does not indicate full approval. The approval of the
prescription is only a counter offer.

3. A offered for sale to B a particular condominium unit in Sta. Mesa, Manila.

Sensing that B still needs to inspect the unit, he gave B within five (5) days
either to accept or reject the offer. After three (3) days, B communicated
his acceptance of the offer to A which A turned it down considering that he
changed his mind already and is no longer selling the unit. Is A bound by his
offer? (10 points)

 A is bound to B by his offering. Under section 1324 of the Civil Code of the
Philippines when the offerer has allowed the offeree a certain period of
time for acceptance, the offer may be withdrawn at any time prior to
 acceptance by communicating the withdrawal, unless the option is based on a
consideration paid or promised as something.

4. A sent a letter to B offering for sale his particular house and lot in
Bulacan. The following day, upon receipt of A’s letter, B immediately drafted
likewise a letter accepting the offer. Can A still withdraw from his offer?
(10 points)

 A, in accordance with article 1319 of the Philippine Civil Code, may still
withdraw its offer until his has been informed of the time of its acceptance
by the offeree, B, has been informed to him. An assumption made by letter
or telegraph binds the offerer only when it comes to his notice. B, to be only
able to create an acceptance letter does not imply that he has communicated
his acceptance to the offeror.

5. A is so desperate to acquire the ownership of a tract of land owned by B.

B would not concede whenever A offers to purchase it. Out of desperation,
he poked a gun to B and asked him to sign a pre-form contract of sale
pertaining to the said lot. Can B invalidate the contract? (10 points)

 Yes B may invalidate the contract within 4 years of the termination of the
intimidation and withdraw the relevant cancellation. As stated in " Article
1330 of the Civil Code of the Philippines", a contract in which consent is
given through mistake, violence, undue influence or fraud is voidable. It is
clear from carrying a pistol to B that B was threatened making the contract
to be voidable. Therefore B can invalidate the contract.
Exercises 5: Situational questions. Every answer must be supported with a
legal basis.

1. A is the legal guardian of X, a minor. In his capacity as a guardian he sold

the condominium unit of X worth 1million pesos for only P500,000.00. Discuss
the status of the contract? (10 points)

 Since the minor has suffered a injury greater than 1//4 of the value of the
initial consideration, the contract is deemed to be voidable. According to
Art. 1380 " contracts validly agreed upon may be rescinded in the cases
established by law". In addition, Article 1381 sets out the conditions for a
contract to be considered as void.

500,000 / 1,000,000 = 50% lesion suffered by minors.

Rescission -- a remedy granted by law to the contracting parties and

sometimes to third parties to obtain compensation for damage caused by a
valid contract.

2. A obtained the services of B for the construction of his house in Bulacan.

However, considering the financial predicament A is still facing, they agreed
that B will start its construction after one (1) year. What could be the
rights and obligations of the parties in the event B refused to proceed with
his obligation? (10 points)

 A, cannot demand or enforce for this contract because it is not ratified,

according to Article 1403 of the Civil Code of the Philippines, unenforceable
contracts are those contracts that can be enforced or given effect in court
or law or sued upon by reasons of certain defects provided for by law until
and unless they are ratified according to law.

3. A forcibly secured the consent of B to sign the contract. Later, A wanted

to invalidate the contract by reason that the consent of B in signing the
contract is vitiated. On the other hand, B, despite such fact, he wanted to
pursue the contract. What is the best way to decide the situation? (10
points)
  Under article 1390 of the Civil Code of the Philippines, a vitiated consent
makes the contract voidable or annullable, in the situation B is considered
the victim, while A is the guilty party responsible for the defect. The
annulment authority was given to B because he is the injured party even if A
wanted to invalidate the contract. Since B wanted to pursue the contract,
the best way to decide the situation is to ratify the contract and the
ratified contract cannot be annulled in accordance to Article 1392.

4. A poked a gun to B since B does not want to sell his valued property to A
and then uttered these words, “Pirmahan mo ang Deed of Sale na ito, kung
hindi uubusin ko ang lahi mo!!!”. What is the status of A and B’s contract? (10
points)

 A poke gun to B and stated to threat to B that constitutes intimidation,

according to Article 1390 of the Civil Code of the Philippines, a contract is
voidable or annullable when the consent is vitiated by mistake, violence,
intimidation, undue influence or fraud. Therefore, the status of the contract
is therefore defective, but it is valid until annulled.

5. A is asking for the reformation of the instrument because he was allegedly

deceived by B in agreeing that payment has to be made in 5 equal instalments
only when in fact the payment should have been within a period of 12 months.
Is this remedy correct? (10 points).

 In this particular situation, the remedy of this contract is incorrect, and

there has been fraud by one of the parties when the contracts is still on the
discussion, in accordance to the second paragraph of Article 1359 of the
Civil Code of the Philippines, states that if mistake,fraud,inequitable
conduct, or accident has prevented a meeting of the minds of the parties,
the proper remedy is not reformation of the contract but annulment of the
contract.