1. Obligations arising from law are not presumed.

Only those expressly determined in this code or by special laws are demandable and shall be regulated b. c. d. e. Principally by the provisions of the Civil Code on the law of obligations. Secondarily by the provisions of the Civil Code on the law of Obligations. Supplementary by the precepts of the law which creates the obligation. Principally by the agreement of the parties so long as they are not contrary to law, public policy, good customs and public order.

A: letter b 2. A debtor may be held liable for damages for delay in an obligation -a. b. c. d. A. letter c 3. In an obligation to give a car, the debtor has the accessory obligation a. To take care of the object with the proper diligence of a good father of a family. b. To pay damages for neglect committed in the performance of the obligation. c. To be prudent and careful in all human actuations to ensure that no damage is sustained by others. d. To deliver the accessions and accessories. A.letter c 4. Last January 13, 2012, Maria acquired a loan from Peter in the amount of P500,000 that is due and demandable on December 24, 2012. Thereafter, on March 15, 2012, Maria again acquired a loan from James in the amount of P1million that is due and demandable on November 15, 2012. Last week however, Maria was declared insolvent. Having learned of the insolvency, James immediately enforced the obligation on Maria and was able to collect the P1million. Having been informed of the payment, Peter filed an action to rescind the same on the ground that Maria made the same to James when she was in a That is negative personal That is Alternative That is subject to a negative condition That is subject to an impossible condition

1. Obligations arising from law are not presumed. Only those expressly determined in this code or by special laws are demandable and shall be regulated b. c. d. e. Principally by the provisions of the Civil Code on the law of obligations. Secondarily by the provisions of the Civil Code on the law of Obligations. Supplementary by the precepts of the law which creates the obligation. Principally by the agreement of the parties so long as they are not contrary to law, public policy, good customs and public order.

A: letter b 2. A debtor may be held liable for damages for delay in an obligation -a. b. c. d. A. letter c 3. In an obligation to give a car, the debtor has the accessory obligation a. To take care of the object with the proper diligence of a good father of a family. b. To pay damages for neglect committed in the performance of the obligation. c. To be prudent and careful in all human actuations to ensure that no damage is sustained by others. d. To deliver the accessions and accessories. A.letter c 4. Last January 13, 2012, Maria acquired a loan from Peter in the amount of P500,000 that is due and demandable on December 24, 2012. Thereafter, on March 15, 2012, Maria again acquired a loan from James in the amount of P1million that is due and demandable on November 15, 2012. Last week however, Maria was declared insolvent. Having learned of the insolvency, James immediately enforced the obligation on Maria and was able to collect the P1million. Having been informed of the payment, Peter filed an action to rescind the same on the ground that Maria made the same to James when she was in a That is negative personal That is Alternative That is subject to a negative condition That is subject to an impossible condition

state of insolvency and that the debt was not yet due and demandable. If you were the judge you will a. Grant the petition to rescind the payment made by James on the basis of the allegation of Peter, b. Deny the petition for rescission on the ground that Maria paid the debt that was more onerous considering the amount of the obligation in the sum of P1Million compared to that of Peters which was only P500,000. c. Grant the petition because it was a payment to defraud Peter, a creditor of Maria. d. Deny the petition because the right of James to enforce the obligation shall be enforceable before the right of Peter considering the suspensive periods. A.letter d

5. In a conditional obligation where there are several joint debtors while the several creditors are solidary, the fulfillment of the obligation shall a. Obligate one of the debtors to pay only his proportionate share to only one of the creditors. b. Give right to a creditor to collect only his proportionate share from only one of the debtors. c. Give one of the creditors the right to collect the entire obligation against all the debtors. d. Obligate one of the debtors to pay the entire obligation to only one of the creditors. A. letter a

6. In a conditional obligation where there are several solidary debtors while the several creditors are joint, the fulfillment of the obligation shall a. Obligate one of the debtors to pay only his proportionate share to only one of the creditors. b. Give right to a creditor to collect only his proportionate share from only one of the debtors. c. Give one of the creditors the right to collect the entire obligation against all the debtors. d. Obligate one of the debtors to pay the entire obligation to only one of the creditors. A.letter b 7. On January 1, 2009, X wrote Y a letter wherein he (X) offered to sell to Y his

land covered by TCT no. 123456 of the Registry of Deeds of Bulacan, for P5 Million cash. Y received the letter on January 4, 2009, and, that same day, wrote his absolute acceptance of the offer.

Assuming that Ys letter of acceptance was received at the residence of X and read by X on January 10, 2009, but the day before January 9, 2009, X mailed a letter to Y withdrawing his offer (which letter of withdrawal was received by Y only on January 14, 2009), was there a perfected contract between the parties?

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a. Yes, because the perfection of the contract was at the moment Y received the offer and he also wrote his absolute acceptance of the offer b. No because the contract was not perfected yet at the time X withdrew the offer on January 9, a day before he actually received the acceptance and read the same. c. Yes because the perfection of the contract was at the moment Y sent the letter of acceptance even if the same was not actually received and read yet by X d. No, because perfection of the correct is only at the moment X informs Y that he has received and read the acceptance and is now ready to formalize the contract. A.letter b

8. Considering the facts above, Assuming that when Ys letter of acceptance was delivered at Xs residence on January 10, 2009, X had already decided not to sell his property and fearing that there might be an acceptance contained in the unopened letter of Y, he (X) first wrote and mailed his letter of withdrawal before daring to open and read Ys letter. Was there a perfected between the parties? a. Yes because perfection of the contract was the moment X received the letter of acceptance even if he may not have read the same yet. b. No because perfection of the contract is only at the time X opened and read the letter of acceptance. c. Yes because perfection of the contract was presumed when X deliberately delayed the opening of the letter just to avoid actual knowledge of the acceptance. d. No, there was no perfection of the contract but X may be held liable for damages by Y for being in bad faith in deliberately delaying the opening of the letter. A.letter b, by applying the theory of cognition..

!9. Assuming the same facts as stated in No. 7 above a, but X is offering a property to Y as a real estate broker and not the owner of the property being sold, is the contract perfected between the parties.?
a. Yes, because the perfection of the contract was at the moment Y received the offer and he also wrote his absolute acceptance of the offer b. No because the contract was not perfected yet at the time X withdrew the offer on January 9, a day before he actually received the acceptance and read the same. c. Yes because the perfection of the contract was at the moment Y sent the letter of acceptance even if the same was not actually received and read yet by X d. No, because perfection of the correct is only at the moment X informs Y that he has received and read the acceptance and is now ready to formalize the contract. -A

10. Joey obtained a loan from Mary and Jane for the amount of P400,000.00 for which Joey was to guarantee payment by the mortgage of his Ford Expedition. Joey is to pay the amount on March 4, 2009. Last January 21, 2009, however, the Ford Expedition was totally destroyed when lightning struck it. As a consequence of the loss, Mary sent Joey a demand letter requesting that the loan be immediately paid. Joey, requested deferment of the payment until March 4, 2009 (the original period) and presented to Mary his house and lot as a substitute collateral for the loan. Mary refused to accept the new guarantee and insisted the immediate payment. Joey, this time with temerity, refused. a. Can Mary demand payment of the loan aheadly after the loss of the vehicle but before March 4, 2009, notwithstanding Joeys effort to constitute a substitute security or guarantee? (5%) b. Assuming Joey does not put up substitute guarantee/ security for the loss, will your answer change? c. Assuming that instead of Mary disregarding the period (march 4,

2009) after the loss of the vehicle, it was Joey himself who insisted on paying the obligation, can Mary be compelled to accept the whole amount? (5%) d. Assuming Joey pays Mary, P400,000.00, then Mary disappears, can Jane still demand from Joey another payment of the same amount? 11. In June 2007, Jerry obtained a loan from Alex and executed a\with George, as solidary co-maker, a promissory note in favor of Alex for the sum of two million pesos. The loan was payable at P200,000.00 with monthly interest within the first week of each month beginning July 2007 until maturity in April 2008. To secure the payment of the loan, Jerry put up as security a chattel mortgage on his car, a Toyota Prado. Because of Jerrys and Georges failure to pay the principal amount of the loan, the car was extrajudicially foreclosed. Alex acquired the vehicle at his highest bid of P1.3 Million during the auction sale. After several fruitless letters of demand on Jerry and George, Alex sues George alone for the recovery of the balance. Jerry resisted the suit raising the following defense a. That George hould not be held liable at all because jerry was not sued with him; b. That George and Jerry should not be held liable anymore for the deficiency because the obligation was extinguished when Alex acquired the vehicle; c. That assuming George is liable, he should be made to pay only his proportionate share of P350,000.00 Questions: a. Are the arguments of George tenable?

! b. Assuming that in the above, Alex acquired the Toyota Prado through Dation en Pago, would your answer above be the same?

12 . Jane, Mich and Arlene and Cecil jointly and solidarity obtained four (4) separate loans from Robert and Mark, solidary creditors. The first loan in the amount if P8Milion, to which the debtors shared equally in the debt and with a stipulated interest of 0% became due last February 28, 2009. The second for the amount of P10Milion with a 0% interest also became due last march 1, 2009. In this loan, however, that shares of Jane, Mich and Arlene are only for P1Milion each and the rest was the liability of Cecil. The third, due last March 5, 2009, was for another P8milion plus 0% interest and again equally shared by Jane, Mich, Arlene and Cecil. And finally, the fourth, in the amount of P2Milion plus 10% interest shall become due anytime upon demand in writing by any of the creditors. The amount of this last obligation was solely utilized by Jane. Yesterday, Jane paid Mark P20Milion without specifying to what obligation the same was to be applied. Neither did Mark propose any mode for the application of the payment. Answer the Following1) How many should the application of payment of the P20Million be made?

2) How much can Jane demand from Mich, Arlene and Cecil? 3) Assuming Arlene becomes insolvent, how much now can Jane demand from Mich and Cecil? 4) Assuming Robert fell in love with Cecil and condones her proportionate shares in the debts before Mark received from Jane the P20Milion payment, how much con Robert ask from Mark as his share in the payment? 5) Assumuing the said condonation above, can Jane still demand an amount from Cecil?

13. Determine whether the following contracts are valid or defective. If defective, what kind and why? Explain in no more than sentences only. No answer shall be considered after the second chance. a. Madam Grace Kelly donated a diamond studded ring to her best friend Jenny. The ring is worth P50,000. The donation and the acceptance were not in writing. b. Madam Grace Kelly sold a diamond studded ring to her best friend Jenny. The ring is worth P50,000 but sold only for P500. The sale was not in writing. c. Madam Grace Kelly donated a diamond studded ring to her best friend Jenny. The ring is worth P50,000 and was sold for the same price. The sale was not in writing. d. Madam Grace Kelly exchanged a diamond studded ring for car of her best friend Jenny. The ring and the car are worth P50,000 each. The exchange was not in writing. e. Madam Grace Kelly, a minor, old her diamond studded ring to her best friend Jenny, 18 years old.The ring is worth P50,000 and was sold for the same amount. The sale was not in writing. f. Madam Grace Kelly, a minor, old her diamond studded ring through her guardian, to her best friend Jenny, who is 15 years old. The ring is worth P50,000 and was sold only for P30,000. The sale was not in writing.