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Instructions:

Write your answers in a 1 whole sheet of paper. Strictly no sharing of answers. Any indication of
copying other’s assignment/activity will be dealt with accordingly.

Case Analysis:

On August 26, 2023, Mr. Spongebob sold 1 kilo of shabu to Mr. Patrick. Both agreed that
payment will be made on the same day but the delivery of the drugs will be made on September
1 because Patrick still needs to look for a place to store the drugs.

On September 1, Patrick demanded the delivery of drugs but Spongebob refused to deliver the
same. Hence, Patrick ask for the return of his money to which Spongebob refused because their
transaction was illegal.

1. Was there a CONTRACT between Spongebob and Patrick? (yes or no). Why?

2. Is this a valid contract? Explain.

3. Is Mr. Spongebob oblige to return the money? Why or why not?

4. What is the source of obligation if Spongebob will return the money?

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