BAC BLAW: Business Law

Extinguishment of Obligations Quiz

1.) Quizzes

(1) Kara David (Debtor) owes Bianna Liong (Creditor) P 10,000 with Gwen Garci as
guarantor. On the due date of the obligation, Shannon Robinson, a third person,
offered to pay the obligation of Kara David. Can Bianna Liong (Creditor) legally refuse
to accept the payment? How about an offer of payment from Gwen Garci?
- Bianna Liong can legally refuse to accept the payment from Shannon
Robinson, because Shannon is not involved in the agreement of Kara and
Bianna.
- If Gwen Garci offers payment to Bianna Liong, Bianna can accept the
payment because it was listed in the agreement that Gwen is the guarantor.

(2) Nathalie Hart (Maker) issued a promissory note for P 10,000 in favor of Paulina
Evangelista (Payee) who lost the note which was found by Andrea del Rosario, who
demands payment from Nathalie Hart.
Nathalie Hart did not know that the note was lost by Paulina Evangelista. Is
Nathallie Hart (maker) justified in paying Andrea del Rosario?
- Nathalie Hart did not know that the promissory note was lost. At the time
that it was lost, it was already in the possession of Paulina Evangelista,
therefore the note already belongs to Paulina. Andrea del Rosario demanding
for payment from Natalie is not justifiable. Andrea has no right to demand
from Natalie, therefore, Natalie can sue Andrea for demanding payment
Andrea has no right with.

(3) Phoemela Baranda (Debtor) owes Sam Page (Creditor) which was paid by Debbie
Garcia, who demands reimbursement from Phoemela Barranda.

(a) When is Phoemela Baranda liable to Debbie Garcia?

- Phoemela Baranada is liable to Debbie Garcia when there is a written
agreement stating that Phoemela will reimburse Debbie after Debbie pays
the money, she owed Sam Page.
(b) When is Phoemela Baranda not liable to Debbie Garcia?
- Phoemela Baranda is not liable to Debbie Garcia when there is no written
agreement or no witnesses during verbal settlement.
(c) When is Phoemela Baranda liable for less than P 10,000 to Debbie Garcia?
 - Pheomela Baranda is liable for less than P 10,000 to Debbie Garcia if there is
a contract that states the amount of the reimbursement Phoemela should
pay.
(d) May Phoemela Baranda be liable to Debbie Garcia for P 12,000 if that was the
amount paid by her to Sam Page (Creditor)?
- Pheomela Baranda may be liable to Debbie Garcia for P 12,000 If there is a
contract stating that Phoemela will pay the reimbursement to Debbie the
same amount Debbie paid to Sam Page.

(4) Racy Ann Oliva owes Bela Padilla P 10,000. Without the knowledge of Bela Padilla,
Racy Ann Oliva in good faith paid to Maui Taylor her obligation to Bela Padilla. Is
Racy Ann Oliva required by law to prove that the payment has been received by Bela
Padilla in order to be released from liability?
- Racy Ann Oliva can only be released from the obligation if Maui Taylor is a
constituent of Bella Padilla. Racy must also show proof of payment that has
been received.

(5) Lauren Reid owes Katya Santos P10,000 in payment for which Katya Santos accepts a
check from Sheree Bautista. On the ground that a check is not legal tender, Katya
Santos later insists that Lauren Reid pay her in cash. Is Lauren Reid justified in
rejecting this demand of Katya Santos?
- Lauren Reid is justified to reject Katya Santos’ demand. As long as the check
doesn’t bounce, it is considered the payment for what Lauren owed to Katya.