BL 223 PRELIM EXAMINATION

SET A AND B

1. Ms. Jeah Hijos borrowed Php 1,000.00 from Ms. Shanon Bucio as evidenced by a
promissory note executed by X as maker. All other requisites of negotiability are present
in the note except that Ms. Jeah Hijos did not affix her usual signature thereon. As Ms.
Jeah was ailing at that time, she was only able to put “X” in the blank space meant for
the signature of the maker.
QUESTION: Is the requisite that “the instrument must be signed by the maker” complied
with, and why? (5pts).

Answer: Yes, because even though Ms. Jeah, the maker, only put X when
supposedly it was for her signature, that X still represents as her consent or
signature, since it was written by her and she couldn’t put a proper signature that
time due to her ailment.

2. Stephenson Q asked her close friend, Hazel A, to buy some groceries for her in the
Supermarket.
Question: Was there a nominate contract entered into between Stephenson Q and
Hazel A? What was it? Explain, (5 pts.);

Answer: Yes, the agent (Hazel A) who authorized by Stephen Q to buy some
groceries has its own name.

3. Bombay-Ahus-Sibuyas- Kamates Corporation, a foreign manufacturer of computers

owned by Ms. Lyka L, Ms. Jean F, and Ms. Patri G and Judo Karate Sagol Barang
Corporation (JUKABAR Corp. for short), a Philippine distributor owned by the FXUU
Dance and Choral Group Corporation, entered into a contract whereby the distributor
agreed to order 1,000 units of the manufacturer’s computers every month and to resell
them in the Philippines at the manufacturer’s suggested prices plus 10%. All unsold units
at the end of the year shall be bought back by the manufacturer at the same price
they were ordered. The manufacturer shall hold the distributor free and harmless from
any claim for defects in the units.
QUESTION: Is the agreement one for sale or agency, why?, (5 points).

ANSWER: The agreement is for sale and not agency. Because they both agreed,
there was a contract and an agreement between two parties.

4. A. Recite the Urios Hymn, (2.5 pts.)

B. Enumerate at least 3 ways on how you make your parents proud of you, (2.5 pts.)

ANSWER A: Seat of wisdom and of knowledge, In this southern timberland

Fountain of you will always be of the love of man for man.
In your fold the youth awaken to the sacred noble truth,
And for man to find happiness is to serve his fellowmen.
Father Urios, Hail to you we your children, far and near.
Shall your truth forever hold, shall your name forever bare.

ANSWER B: 1. Be a good child and a person.

2. Obey and cherish them.
3. Be successful.
 BL 223 PRELIM EXAMINATION
SET A AND B

5. Define Contract of Agency and enumerate its elements, (5 pts).

ANSWER: ARTICLE 1868. By the contract of Agency, a person must bind himself to
render some service or to do something in representation or in behalf of another,
with consent or authority of the latter.

ELEMENTS OFF CONTRACT OF AGENCY

1. There is consent, express or implied, to establish the relationship;
2. The object is the execution of the juridical act in relation to third party.
3. The agency acts in representation, not for himself;
4. The agency acts within the scope of his authority.

6. Define Pactum Commissorium and enumerate its elements, (5 pts.).

ANSWER: Pactum Commissorium is an automatic appropriation by the creditor of

the thing pledged or mortgage upon the failure of the debtor to pay the principal
obligation

Elements of PACTUM COMMISSORIUM

1. There shall be pledge or mortgage of property;
2. There is a stipulation of the automatic appropriation in favor of
the creditor upon the default of the debtor.

7. Distinguish between pledge and mortgage, (5pts.)

ANSWER: Pledge is a contract by virtue in which the debtor delivers to the

creditor a movable object to fulfill its obligation, while mortgage is a contract
whereby the debtor delivers an immovable object such as land.

8. Define Negotiable Instrument, (5 pts.)

ANSWER: Negotiable instrument is a written contract or signed document that

guarantees the payment of the specific amount of the specified person either
demand or on a set of time.

9. What are the rights and obligations of a pledger and a pledgee?, (5 pts.)

ANSWER: RIGHTS AND OBLIGATION OF PLEDGER

RIGHTS:
• To voluntary give the thing to be pledge with the consent of the pledgee
• To continue to be the owner unless it is not prohibited.
OBLIGATION
• To pay damages in case the pledgee suffers from the reason of the flaws of
the thing pledge, if he was aware of such flaws and not telling to the
pledgee.
• To pay interests and its debts with expenses in the proper case when it’s
due.
RIGHTS AND OBLIGATION OF PLEDGEE
RIGHTS:
• To retain in his possession of the thing until the debt is paid.
• To demand reimbursement made for the preservation of the thing pledge.
 BL 223 PRELIM EXAMINATION
SET A AND B
OBLIGATION:
• To take good care of the thing pledge with the diligence of a good father
of the family.
• To not deposit the thing to the third part unless its authorized.

10. A. What are the modes of extinguishing a contract of pledge?, (2.5 pts.)
B. Tell your instructor your suggestion how can we can improve your class
learning in terms of the style and methods of teaching, etc…

ANSWER A:
MODES OF EXTINGUISHMENT OF A CONTRACT OF PLEDGE
• When the pledgor are able to pay his or her debts.
• Completion of the contract
ANSWER B:
SECRET HAHAHAHAHHAA

11. A. Kindly state the FACTS OF THE CASE, THE ISSUE and THE RULING OF THE COURT in the
case of Triple-V Food Services, Inc. v. Filipino Merchants Insurance Co., GR No 160544,
February 21, 2005 (2.5 pts);

ANSWER:
FACTS: De Asis dined in the petitioner’s kamayans restaurant. Crispa textile Inc.
gave de asis a 1995 Mitsubishi Galant Super Saloon Model UBU 995. On that
occasion, De Asis used the petitioner’s valet parking service, so she gave her keys
to the valet, and receives a parking receipt as a ticket. The staff of valet perked
her car in the designated spot, however few minutes later, the car wasn’t in the
parking lot, and the keys was not in the valet attendant’s box.

ISSUE: Whether or not the petitioner is liable for the loss of the concerned car.

RULLING: yes. In the contract of deposit, when the person received an object that
belongs to another. It is obliged to keep it safety and return of the same. Also, it
should apply the diligence of a good father of the family.

B. What about the case of CA Agro-Industrial Development Corp v. CA, et.al., GR

9007, March 3, 1993, (2.5 pts.)?;

ANSWER:
FACTS: Aguirre and Pugao agreed to purchase a 2 parcel of land, with the
condition to deposit the title of land in the safety deposit box and only be
transferred upon full payment of the land. So, they rented a safety deposit box to
the security bank and trust company. Mrs. Ramos wanted to purchase the land,
and she demanded the title of the certificate. When Aguirre and Pugao went to the
bank to set the title of the certificate, in the box, it was found that the box is empty,
therefore, Mrs. Ramos withdrew her offer.

ISSUE: Whether or not a commercial bank and third-party safety deposit box
leasing agreement is a lessor-leasing arrangement.

RULLING: yes. The execution of the petitioner and respondent is in the nature of the
contract of lease, whereby the petitioner was given a control and right to open the
box and its content, and the respondent has no right to open it, because its neither
has a control or possession of its content.
 BL 223 PRELIM EXAMINATION
SET A AND B

12. A. Kindly state the FACTS OF THE CASE, THE ISSUE and THE RULING OF THE COURT in the
case of Litunjua, Jr. v. Eternit Corporation, 490 SCRA (2006), 2.5 pts.;

ANSWER:
FACTS: ESAC owned 90% shares to EC. They wanted to stop the operation due to
the political situation in the Philippines. ESAC instructed Adam, one of the BOD of
EC, to dispose the 8 parcel of land. Adam hired a broker, Marquez. Marquez
declared himself to sell the land to Litunjua for 27M pesos, but through negotiation
it was sold for 20M in cash.

ISSUE: Whether or not Marquez was authorized by the principal to act its agent
relative to the sale of the properties of EC.

RULLING: No. since the authority was not in written, the sale is void and not merely
unforceable and such could not have been ratified by principal.

B. Kindly state the FACTS OF THE CASE, THE ISSUE and THE RULING OF THE COURT
in the case Eurotech Industrial Technologies, Inc. v. Cuizon, GR 167552, April
23, 2007, (2.5 pts.);

ANSWER:
FACTS: Eurotech sold a 250,000 pesos sludge pump to Impact System, and
made a 50,000 downpayment. After the sludge pump arrived, Eurotech
wouldn’t give the sludge pump unless they pay the remaining balance. So,
Edwin Cuizon a manager of Impact System and Alberto de Jesus Eurotech’s
general manager signed a deed of assignment of receivables in favor of
Eurotech. However, the respondent collected 365, 135. 29 pesos from Toledo
Power company despite the deed of Assignment.

ISSUE: Whether or not Edwin exceeded his authority when he signed the Deed
of Assignment thereby binding. himself personally to pay the obligation to
Eurotech.

RULLING: No. Under Article 1897, an agent is not personally liable to the party
with whom he contracts. unless he expressly binds himself or exceeds his
authority without giving due notice. In this case, when he signed the Deed of
Assignment, Edwin Cuizon acted appropriately and within his authority.
 BL 223 PRELIM EXAMINATION
SET A AND B
13. A. Kindly state the FACTS OF THE CASE, THE ISSUE and THE RULING OF THE COURT in the
case of Orbeta v. Sendiong, 463 SCRA 180 (2005), (2.5 pts);

ANSWER:
FACTS: Simeona Montenegro executed a Deed of Sale, selling a portion of a
plot of land known as Lot 606 to the spouses Maximo Orbeta and Basilisa Teves.
The subject land did not include where Simeona Montenegro's grandmother's
house was located and was not part of sale.
These provisions of the General Power of Attorney apply to the signing of
the verification and certification of non- forum shopping, where the respondent,
represented by his attorney-in-fact and daughter Mae A. Sendiong, filed a
petition for Annulment of Decision with a Prayer of a Temporary Restraining
Order.

ISSUE: Whether the Attorney- in- fact had the power to sign the verification and
certification.

RULLING: Yes. The Signing of the verification and certification of non- forum
shopping are covered under the said provisions of the attorney-in-fact.
General Power of Attorney shows that Mae Sendiong is empowered, among
others, to execute, sign, authenticate, and enter into any and all contracts and
agreements in behalf of her Father.

B. Kindly state the FACTS OF THE CASE, THE ISSUE and THE RULING OF THE COURT
in the case of Domingo v. Domingo, GR L-30573, October 29, 1971, (2.5 pts);

ANSWER:
FACTS: Vicente Domingo authorized Gregorio Domingo, a real estate agent, to
sell his lot with a 5% commission if the property is sold by Vicente or anyone
else during the 30-day duration of the agency or within three months of the
agency's termination to a purchaser. Gregorio authorized intervenor Teofilo
Purisima half of his commission to locate a buyer. Purisima then suggested
Oscar de Leon to Gregorio as a buyer.
Oscar de Leon gave $1,000 as a gift to Gregorio, but Gregorio did not tell
Vicente and Oscar did not give Vicente any extra earnest money as what he
promised. Gregorio went to Vicente to demand Payment after he discovered
that Vicente sold the lot to the same buyer.

ISSUE: (1) Whether or not Gregorio's failure to disclose to Vicente the gift from
Oscar constitutes fraud and result in the forfeiture of his commission on the sale
price.

(2) Whether Gregorio should be liable to the intervenor Purisima for the
expected commission.

RULLING: Yes. And the following are given to Gregorio Domingo:

(1) to pay the moral damages and attorney's fees of 1,000 to Vicente Domingo
heirs;
(2) to pay Purisima the sum of 650; and
(3) to pay the costs.
BL 223 PRELIM EXAMINATION
SET A AND B