CIVIL LAW REVIEW 2

MIDTERMS – Obligations and Contracts

Submitted by: 2017839751

CIVIL LAW REVIEW 2

MIDTERMS – Obligations and Contracts
Submitted by: 2017839751

I. Multiple Choice

1. D
2. D
3. A
4. C
5. E
6. E
7. B
8. C
9. D
10. C
11. D
12. A

II. Essay

1. No, the consignation is invalid. The civil code provides that for
consignation to release the obligor, persons interested in the
fulfillment of the obligation must first be informed. This notice is
essential to the validity of the consignation.

In this case, Monica et. al. did not inform Dorothea of the
consignation. Thus, lacking notice, consignation is invalid.

2. No, JC remains liable MSI as no novation took place. The civil

code is clear that agreement of all parties is a prerequisite of a
valid novation. Such consent can’t be presumed. In addition,
jurisprudence has provided that mere acceptance of payment
by a creditor is not to be considered an implied acceptance of
the novation as it is within a creditor’s rights to accept payment
made by a third party.

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CIVIL LAW REVIEW 2
MIDTERMS – Obligations and Contracts
Submitted by: 2017839751

Here, although MSI accepted payments by Amor, no explicit or

implied acceptance of the novation was made. Thus, without a
valid novation JC is not released and Amor as a third party who
has assumed the debtor’s obligation is merely a co-debtor or
surety or co-surety.

3. No, Iya can’t claim reimbursement from Betty. The civil code is
clear that remission of the whole obligation to one of the
solidary debtors will lead to none entitlement to reimbursement
from their co-debtors.

Here, the whole debt of 500k has been condoned by Jun. Thus,
with the remission of the whole obligation. Iya is no longer
entitled to reimbursement.

4. No, Pedro can’t be compelled to pay the whole debt as the

obligation of Pedro, Juan, and Don to Cita is joint in nature. The
civil code is clear that an obligation is presumed joint if there is
a concurrence of one or more creditors or debtors in one and
the same obligation. In a joint obligation, debtors are bound to
only render compliance with his proportionate part of the
prestation.

Here, with no explicit agreement that Pedro, Juan, and Don are
jointly and severally bound to Cita, the nature of the obligation
of the three is a joint obligation. Thus, Pedro’s liability to Cita
remains to be only his proportion of the debt.

5. Yes, Julia may demand for the return of her overpayment. The
civil code provides that interest paid in excess can be
recovered by the debtor.

Here, Sara never stipulated the payment of interest making

Julia’s payment of such an excess in the price of the property.
Thus, Julia may demand for the return of said interest.

6. Nolan can have a court fix a period for his agreement with
Zeny. The civil code provides that if an obligation does not fix a
period, but by nature a period was intended, the courts may fix

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CIVIL LAW REVIEW 2
MIDTERMS – Obligations and Contracts
Submitted by: 2017839751

the duration. The civil code also specifies that agreements

where debtor binds himself to pay when his means permit him
are included in this provision.

Thus, since Zeny bound himself to pay when his means permit
him in this case, Nolan can have a court fix a duration on when
the payment must be made.

7. Yes, ABC may proceed against Rocella as she solidarily bound

herself to pay for Kevin’s debt. The civil code makes the
distinction that a guarantor binds themselves to fulfill obligation
if the debtor fails to do so. However, if a person binds
themselves solidarily with the contract is considered that of a
surety.

Here, despite the title of the contract being “Continuing

guaranty agreement” the provisions of the contract provides
that Rocelle is solidarily binding herself to Kevin’s obligation.
Thus, in the nature of being solidarily liable for Kevin’s
obligation she is considered to be a surety and thus ABC may
proceed against her.

8. A. Voidable, as a minor Lana is considered a party incapable of

giving consent to a contract.

B. Void, The Philippine Sea is outside the commerce of men

C. Valid, ratification can be effected by the guardian of the

incapacitated person, and it clears the contract from all its
defects from the moment it was constituted.

D. Unenforcable, as a both Clarence and Cesar, as minors, are

considered a party incapable of giving consent to a contract.

E. Recissible, sale was made in fraud of creditors in order to

impede collection of claims due.

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