ANDRES SORIANO COLLEGES OF BISLIG

COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION

A. Y. 2022-2023
1st Trimester

OBLIGATIONS AND CONTRACTS- FINAL EXAMINATION

NAME: ______________________________________________ DATE: 11/29/2022 SCORE:___________

YEAR LEVEL & STATUS (REGULAR/ IRREGULAR): ___________________________________________

ESSAY (100 points)

ANSWERS MUST BE ATLEAST THREE (3) PARAGRAPHS LONG.

1. NL Enterprises (as buyer) and Pharmally, Inc. (as seller) agreed to the sale of 100,000 pieces of face masks for a total
price of P1,000,000.00, with the condition that NL Enterprises will make an initial payment of P500,000.00 and the
balance to be paid after NL Enterprises shall have submitted the names and addresses of the consignees or recipients of
the face masks. Two months had elapsed since the purchase, but NL Enterprises had delayed the submission of the
information required, for which reason the balance of P500,000.00 remained unpaid. Pharmally, Inc. then sued NL
Enterprises for the payment of the P500,000.00. According to NL Enterprises, its obligation to pay the balance was not
yet due, because it was subject to a suspensive condition. Is NL Enterprises correct? Explain your answer. (50 points)

OBLIGATIONS AND CONTRACTS-FINAL EXAMINATION Page 1 of 2

Professor: Atty. Vivian Malazarte
2. Nelson has a small poultry business, and he supplies several bakeshops their egg requirement for their cakes and other
desserts. Last month, Nelson supplied eggs worth P12,000.00 to Sherep Bakery. It was agreed that Sherep Bakery will
pay either by delivering to Nelson cakes and pastries valued at P12,000.00 or to pay the amount within one month. The
following day, Sherep Bakery entered into an agreement with Sobrang Sherep Online Food Store for the supply of
certain cakes and pastries. It was stipulated therein that the eggs to be used were supplied by Nelson. Nelson was not a
party to the contract between Sherep Bakery and Sobrang Sherep Online Food Store. A month after delivering the eggs,
Nelson demanded payment from Sherep Bakery, but the latter refused to pay, claiming that Nelson should collect from
Sobrang Sherep Online Food Store, because the original contract had been novated. Was there a novation of the
contract? Explain your answer. (5 points)

OBLIGATIONS AND CONTRACTS-FINAL EXAMINATION Page 2 of 2

Professor: Atty. Vivian Malazarte