FINALSOBLIGATIONS AND CONTRACTS

ATTY. JCGOctober 9, 2015

1. Mr. A and Mr. B entered into a contract where Mr. B borrowed money from Mr. A in the amount of 2 Million Pesos. They agreed that Mr. B will pay the whole amount after 3 years, provided that Mr. B will give as collateral his BMW sports car. After one year of paying the installments, Mr. B, while driving the BMW, figured in an accident and by reason thereof the BMW was totaled. Learning about the accident, Mr. A approached you to ask what he can do with regard to the debt of Mr. A considering that the collateral was destroyed.

1.a. If you are the counsel of Mr. A what advise will you give to Mr. A? (10 points)1.b. What if you are a counsel of Mr. B? What advise will you give him? (10 points)

2. 2.a. What is the difference between Dacion En Pago and an Alternative Obligation? (10 points)2.b. What is the difference between void and voidable contract? (10 points)

3. 3. a. Mr. A, Mr. B and Mr. C owes Php 300,000 to Mr. D, Mr. E and Mr. F. When the debt becomes due they cannot find Mr. B and Mr. C. Mr. A however told them that he is willing to pay them to settle his indebtedness. How much can Mr. D ask for payment from Mr. A? What is the reason for that? Explain your answer. (10 points)

3.b. Supposing that in the above example the debt is solidary and Mr. A paid the whole amount to the Ms. X the secretary of Mr. D, E and F. However, not knowing of the payment made by Mr. A, Mr. D E and F went to Mr. B and C and told them that they are condoned from paying the debt. Can Mr. A still ask for reimbursement from Mr. B and C? Why? (10 points)

4. 4.a. Give 2 examples of the exception to the general rule that contracts take effect only to the parties and their assigns and heirs. (10 points)

4.b. Mr. A who was selling his condominium unit was approached by Mr. B who is interested in buying the condo unit. Mr. B, however, asked Mr. A to not sell the condo unit for 1 month because he will still think about buying the said condo, Mr. A agreed. The next day, Mr. A called Mr. B that he is selling the condo to Mr. C. Can Mr. B file an action for damages against Mr. A? (10 points)

5. 5.a. Mr. A and Mr. B entered into a contract of sale of a parcel of land owned by Mr. A. For purpose of security, they agreed that instead of the actual amount of 10 million purchase price, they will put in the contract that the purchase price is 3 million. What kind of contract did Mr. A and Mr. B entered? Is that valid? (10 points).

5.b. If you entered into an employment contract for 5 years, can the management of that company prevent you from resigning? Why can they not prevent you to resign? If you resign, what can the company do against you? (10 points)

-ENJOY YOUR SEM BREAK! :D-