Civil Law Review Case Doctrines - Part I

Upon my reaching the 4th year of law school, I am enthralled at the quick passage of time. Four years ago, I was only a freshman with budding desires to become a lawyer. Now, I am just a stone throw away from graduating, and hopefully, taking the bar.

But being a senior comes with it great responsibilities. And foremost is the huge amount of paper works and cases that one has to read, aside from the volumes of books to review and codal provisions to re-familiarize or as one has candidly placed it, memorize it na talaga.

As part of my social service to those who would be in the same vein as I am today in the future, I am starting a new segment of this blog. I shall try to condense the cases I read into the primary doctrines it has pronounced. Just a forewarning, this is not a supplement to your own reading of the cases. Read it from the original. I did. The reason - I WANT TO BE A LAWYER. So if you want to be, READ THE ORIGINAL.

Credit Transactions - Finals

Reconstituted questions of Finals under Atty. MEV, 8 October 2009.

1. Distinguish Insolvency from Bankruptcy. What is permitted of the debtor under the Insolvency Law?
2. Distinguish Special preferred credits from Ordinary preferred credits. What is the rule of preference for specific movable property?
3. Bayan Co. had a mortgage credit from Pilipinas Co. in the amount of P500,000, secured by a 1st chattel mortgage on a property. Bayani Co. also has a credit in the amount of P1,000,000 secured by a 2nd chattel mortgage on the same property. Bayan Co. partially paid P300,000 of his credit with Pilipinas Co. Thereafter, Bayani Agbayani acquired the credit from Pilipinas Co. and increased the credit to P50,000. Who has preference on the mortgaged property, the 2nd mortgagee or the transferee?
4. Aida executed a "Deed of Sale with Assumption of Mortgage" with Adel. In the agreement, for and in consideration of assuming the mortgage and paying the indebtedness of Aida with Asia Trust, Adel shall enjoy possession and enjoyment of the property. Discuss the nature of the contract between Adel and Aida.
5. Discuss the right of redemption in the following circumstances: (a) period the right can be exercised; (b) effect when the right is not exercised; (c) effect when the right is exercised; (d) sale of the property to a third party; and (e) sale is not registered and without the consent of the mortgagee.
6. BONUS: Enumerate the four (4) exceptions to the rule of the divisibility of pledge.
   

Credit Transactions - Midterms

These are the reconstituted questions of the Midterm Examinations under Atty. MEV.

1. State the ruling in the case of Eastern Shipping Lines v. CA and relate it to the ruling in the case of State Investment House v. CA.
2. What is a warehouse receipt? Give its definition and nature.
3. What are the elements of usury?
4. Amado and Amanda
5. Distinguish sub-guarantee from indefinite guaranty.
6. When can a bailor in commodatum demand at will?
7. How does a sub-guarantor avail of the benefits of excussion and division?
8. Why is the doctrine strictisimi juris applied in accomodation surety?
9. A secured a loan from B in the amount of P10,000,000.00 with 6% interest on January 1, 2006. A defaulted in the payment of the loan. B filed an action for collection of a sum of money on February 10, 2009. How much interest shall be paid?
10. State the ruling in the case of Cebu International Financial Corporation v. CA.

Bonus Question: What is the meaning of credit transactions?

Small Claims Cases Pilot Project

Nota bene:

Check the following as guides for this post:
(A.M. No. 08-8-7-SC) Rule of Procedure for Small Claims Cases, and
(A.O. No. 141-2008) Administrative Order Designating Pilot Courts for Small Claims Cases.

Overview of the Rule

The Supreme Court, by virtue of its Constitutionally guaranteed rule-making powers under Section 5(5) of Article VIII, formulated this special rule of procedure to govern small claims cases. It provides a simple, more inexpensive and expeditious means of settling disputes involving purely money claims than the regular civil process, by allowing the plaintiff (the person suing) to sue a defendant (the person being sued) without the need of a lawyer.

According to the definition provided by the rule, small claims cases are civil claims which are exclusively for the payment or reimbursement of a sum of money not exceeding P100,000.00, and does not include interest and costs.

These claims or demands may be:

(a) For money owed under any of the following:

1. Contract of Lease;
2. Contract of Loan;
3. Contract of Services;
4. Contract of Sale; or
5. Contract of Mortgage;

(b) For damages arising from any of the following:

1. Fault or negligence;
2. Quasi-contract; or
3. Contract;

(c) The enforcement of a barangay amicable settlement or an arbitration award involving a money claim covered by this Rule pursuant to Sec. 417 of Republic Act 7160, otherwise known as the Local Government Code of 1991.

Sales - Finals

FINAL EXAMS IN SALES



I

Juliet offered to sell her house and lot, together with all the furniture and appliances therein, to Dehlma. Before agreeing to purchase the property, Dehlma went to the Register of Deeds to verify Juliet’s title. She discovered that while the property was registered in Juliet’s name, it was mortgaged to Elaine to secure a debt of P80,000.00. Wanting to buy the property, Dehlma told Juliet to redeem the property from Elaine, and gave her an advance payment to be used for purposes of releasing the mortgage on the property. When the mortgage was released, Juliet and Dehlma executed a deed of sale. The sale was duly registered and a new TCT was issued in the name of Dehlma. Immediately, Dehlma took possession of the house and lot. Later, however, when Dehlma went to the Assessor’s office to get a new tax declaration, she discovered that the same property was already declared for tax purposes by XYZ Bank who was a buyer in the foreclosure sale. At that time, the property was not yet registered in Dehlma’s name so XYZ succeeded in registering the Sheriff’s Deed of Conveyance in its name.

Who as between Dehlma and XYZ Bank has a better right to the house and lot? (10 points)

II

Filemon and Edna Garcia are newlyweds. They bought a house last month in Antipolo City. They examined the house twice before agreeing to buy the same for P450,000.00. One week after moving in, a storm hit Antipolo City. During the storm, the Spouses Garcia discovered not less than ten leaks in the ceiling.

 (a) Can they sue the seller for breach of warranty? (5 points)

 (b) Will your previous answer he the same if Filemon and Edna Garcia were merely leasing the house? (5 points)

III

Michael is 18 years old. His next-door neighbor Larry, a 12-year old boy, offered to sell him a Portable Playstation for P8,500.00 which Michael accepted. Upon seeing the PSP, Michael’s father took it and returned the same to Larry’s father and asked for the return of the P8,500.00.

May Michael’s father validly demand the return of the P8,500.00? (10 points)

IV

A foreign manufacturer of computers and a Philippine distributor entered into a contract whereby the distributor agreed to order 1,000 units of the manufacturer’s computers every month and to resell them in the Philippines at the manufacturer’s suggested prices plus 10%. All unsold units at the end of the year shall be bought back by the manufacturer at the same price they were ordered. The manufacturer shall hold the distributor free and harmless from any claim for defects in the units.

Is the agreement one for sale or agency? (10 points)

V

Using a falsified manager’s check, Julia, bought a Toyota car from United Car  Sales. The car was delivered the same day. When the seller presented the check for payment, the check bounced. Unfortunately, Julia was nowhere to be found. Meanwhile, the car had been sold and delivered by Julia to Romeo, who knew nothing about the falsified check. When this was learned by United Car Sales, it filed an action for recovery of the car against Romeo.

Should the suit prosper? (10 points)

VI

Differentiate a sale of real property for a lump sum and a sale of real property in unit measure. (10 points)

VII

In December 2006, Ed Ruiz and Wallace Industries executed a Deed of Conditional Sale wherein the former agreed to sell his 5 hectare land to the latter for the price of PlO million payable P6 million down and the balance 60 days after the squatters in the property have been removed by Ed Ruiz. Subsequently, Ed Ruiz filed ejectment suits against the squatters, but in spite of the decisions in his favor, the squatters would not vacate. Thus, Ed Ruiz offered to return the P6 million downpayment to Wallace Industries due to his inability to remove the squatters. When Wallace Industries refused, Ed Ruiz consigned the money in court and filed a case for judicial rescission.

Is the action for rescission meritorious? (10 points)

VIII

Ermelinda is a single mother of six. She owns a real property situated in Sta. Maria, Bulacan. In 2001, she mortgaged the property to her friend, Arlene, as security for a loan in the amount of P500,000.00. One year later, when Ermelinda could not pay for the loan, she and Arlene executed a Deed of Absolute Sale with Right of Repurchase over the mortgaged property, for a consideration of P300,000.00.

(a) In law and equity, what is the nature of the contract entered into by Ermelinda and Arlene? Why? (5 points)

(b) In case the sale is annulled by the court, what can Arlene do to protect her interests? (5 points)

IX

It’s SM’s 3-day Sale once again. While shopping, you found a blazer with a price tag of P199.95. When you went to pay for it, the cashier said it cost P799.95. Should the store sell the blazer to you for the price marked on the tag? (10 points)

X

(a) What is legal redemption? (5 points)

(b) What are the requisites for the exercise of legal redemption by a co-owner? (5 points)

Property - Finals

As usual, I have reconstituted the questions for the Final Exams in Property under former Associate Dean TLC.

Nota Bene:

I have no longer included the questions for Items True or False; and Multiple Choice, they are quite long.

III.

State the number of co-cowners that must give their consent. (10%)

a. repairs for preservation

b. ejectment

c. alterations

d. useful improvements

e. acts of administration

IV.

A. John and Jane are the co-owners of a party wall.

1. If John constructs a window on the party wall in 1996, what is the period when Jane may close the window? Explain. (5%)

2. Would the answer be the same if John opens a window on his own wall that does not extend over the property of Jane? Explain. (5%)

B. Joey owns a parcel of land enclosed by the estates of Tommy, Sammy and Vahl. He is demanding a compulsary right of way over the property of Tommy, which was proven to be the shortest way to the public highway. Tommy contends that compulsary right of way should be over the property of Vahl, who sold Joey the property. It was proven that the right of way over Vahl's property is longer than that of Tommy, but is least prejudicial to the servient estate.

1. What are the requisites of a compulsary easement of right of way? (10%)

2. On whose property should the right of way be constituted? Explain. (5%)

V.

Distinguish. (10%)

1. Nuisance per se and nuisance per accidens.

2. Servient estate and dominant estate.

VI.

State the remedies for a public nuisance. (5%)

VII.

1. For the love, care and affection to her niece Ayn, Carolina wants to donate a 1,000 sq. m. house and lot. Advise her on the formalities in order that it become a valid donation inter vivos. (10%)

2. Rosalie was very happy because her sister Rosemarie, who was married for many years, got pregnant for the first time. Rosalie donated P100,000 in favor of the baby. They were very happy talking about it, shopping for the child's clothes. The baby was born after 7 1/2 months but died within 24 hours. 

Can Rosalie get back the P100,000? Explain. (10%)

VIII.

Belinda owns a mango tree near the property of Amalia. (10%)

1. Can Amalia get the fruits still on the branches? Explain.

2. Can Amalia cut off the branches that extends over her property? Explain.

3. Can Amalia cut off the roots that intrudes into her property? Explain.

Sales - Midterms

I.

Harold and Kumar are friends. Harold has always been interested in getting a game console similar to Kumar's limited edition game console. On Harold's 22nd birthday, Kumar proposed that Harold buy his game console at a very low price of P800. According to Kumar, the difference of the price shall be his birthday gift to Harold. So, as suggested, Harold bought Kumar's game console for P800. Later, Kumar's younger brother Suresh, protested and claimed that the sale was void because the price was grossly inadequate compared to the game console's actual price of P18,000. Is the sale valid? Support your answer. (10 pts.)

II.

Bruce Wayne bought the penthouse in the latest condominium project constructed by Ayala Land in Makati City. For the price of P50 million, Bruce Wayne only gave P10 million. Then, Ayala Land issued an instrument denominated as "Deed of Conditional Sale." Bruce Wayne immediately occupied the unit and used it as one of his hideaways. Later, when Ayala Land demanded for the balance of the price, and Bruce Wayne refused to pay, Ayala Land filed a case for a sum of money against Bruce Wayne. 

a. Under the facts, is the sale absolute or conditional? (5 pts.)

b. Distinguish between a conditional contract of sale and a contract to sell? (5 pts.)

III.

The Deed of Sale dated June 10, 2008 between Harry Potter (vendor) and Hermione Granger (vendee) states that:

For and in consideration of the amount of PhP 200,000.00 paid in hand by the VENDEE to the VENDOR, the VENDOR does hereby SELL, TRANSFER and CONVEY unto the said VENDEE, her successors and assigns, a motor vehicle described as:

2003 Chevrolet Optra sedan, with Motor Number 1000456, Chassis Number 763890 and License Plate Number WQY-543

which the VENDOR is to acquire from his brother on June 20, 2008 and which shall be delivered by the VENDOR to the VENDEE only on June 30, 2008.

a. Is the sale valid? Explain. (5 pts.)

b. Distinguish between sale of thing expected and a sale of hope. (5 pts.)

IV.

Tony Spark was approached by the spouses Jack and Rose, Canadian nationals, to invest in "futures." Tony Spark was convinced. As investor, Tony Spark would supposedly be buying and selling commodities in foreign commodities markets. These commodities include rice, corn and petrol. At a certain call time, Tony Spark will decide how much he is willing to bid and if the price turns out to be higher, Tony Spark loses his money. But if the price turns out to be lower, then the compamy of Spouses Jack and Rose will pay Tony Spark the difference. Later, the investment failed and Tony Spark wanted to recoup his money. The Spouses Jack and Rose opposed the claim and said that there was a valid contract of sale of future goods, under Article 1462 of the Civil Code. How similar or different is the sale of "futures" to a sale of future goods under Art. 1462 of the Civil Code? (10 pts.)

V.

Upon learning that Jimmy Olsen was selling his high-tech camera, Clark Kent told Jimmy Olsen not to sell the camera to anyone until Saturday noon-time. Then, Clark Kent gave Jimmy Olsen P500. On Saturday, at noon-time, Clark Kent went to Jimmy Olsen and told the latter that he changed his mind and will no longer buy the camera. Clark Kent asked for the P500 back. But, Jimmy Olsen refused to return the money. Is the refusal valid? Why? (10 pts.)

VI.

Carrie Bradshaw is a fan of Jimmy Chu and Manolo Blanik shoes. One weekend, while looking at an online catalog, she decided to buy five (5) pairs from each brand. She transacted with the website, paid through her credit card an was issued an electronic invoice. The shoes were scheduled to be delivered the next day. On the next day, however, the package was lost and never arrived. When Carrie Bradshaw complained to the 24-hour customer service hotline, she was told that the risk of loss was on her, that when she was issued the electronic invoice, she was already the owner of the shoes.

a. Was there a perfected contract of sale? (5 pts.)

b. Is the customer service correct in saying that Carrie Bradshaw bears the risk of loss? (5 pts.)

VII.

Bruce Banner purchased on installment a motorcycle from Hulk Trading. Hulk Trading required Bruce to execute a chattel mortgage over the motorcycle in favor of Hulk Trading. The payment term was ten months at P7,500 per month. When Bruce failed to pay the sixth monthly installment, Hulk Trading sued him for the rescission of the contract. After six months of court proceedings, Hulk Trading won and the motorcycle was taken from Bruce Banner. Bruce Banner requested that his payments be returned to him but Hulk Trading refused the request.

a. May the installment payments be forfeited? Explain your answer. (5 pts.)

b. In case the complaint for rescission was accompanied by a preliminary attachment on Bruce Banner's cash deposits in the amount of P37,500, and the said cash deposits were garnished, will this be a violation of the law which provides that a seller cannot avail of two or more remedies at the same time? Explain. (5 pts.)

VIII.

Diana Prince bought under a Contract to Sell dated July 4, 2006 a subdivision lot in Filinvest Homes in Antipolo City. The price stipulated was P3 million with downpayment of P800,000 and the balance of P2,200,000  to be paid in 36 equal monthly amortizations of P61,112. Diana Prince, however was only able to pay 18 monthly amortizations. Thus, Filinvest Land, the owner of Filinvest Homes, sent Diana Prince a letter cancelling the contract to sell. Diana Prince then approached you for advice. What are her rights as a buyer and how can she protect her rights? (10 pts.)

Property - Midterms

This is a reconstituted questionaire of my exam today in Property, under former Associate Dean, ATTY. TLC.

I.

True or False. Write TRUE if the statement is true, otherwise write FALSE and cite the legal basis for such.

a. A possessor in bad faith has the right to reimbursement and right to retention with regard to the necessary expenses
b. Legal partition is effected if the co-owned cannot be separated thereof.
c. Quieting of title is an action quasi in rem.
d. Properties of the public domain may be subject to execution upon judicial order.
e. In case when two owners of two materials are mixed, the doctrine to be applied is “accessory follows the principal.”

II.

Multiple Choice. Write the letter of the best and correct answer.

a. Doctrine of self help, characteristics
b. Characteristics of avulsion
c. Doctrine of self help, characteristics
d. Characteristics of avulsion
e. 

III.

Sps. Reyes owns a piece of land in Makati City worth P1M, covered by TCT # 1234. Sps. Santos builds a P900K house at the said lot. When Sps. Reyes visited the lot, they found out and discovered the construction, but they did not brought up the matter, because it may cause disorder, until the construction was finished. 

Discuss the rights of Sps. Reyes (10%) and Sps. Santos (10%).

IV.

Suppose in Question III, while in possession of the land, Sps. Santos introduced improvements, what are their rights regarding 

a. Necessary expenses (5%); 
b. Useful expenses (5%); and 
c. Luxurious expenses (5%).

V.

Carmen is in a buy and sell business of jewelry. Donna is an agent of Carmen on commision basis. In need of money to pay off her casino debt, Donna secured a P50K loan from Aguirre Pawnshop, giving 5 rings as pledge thereof. Due to her failure to redeem the said rings before the maturity date, the pawnshop foreclosed it. 3 rings were thereafter sold in a public auction sale to Evelyn, while 2 rings remained with Aguirre Pawnshop. When Carmen learned of the sale, she sued to recover her rings from Aguirre Pawnshop and Evelyn. Both refused and interposed the defense as being possessors in good faith. 

a. Between Carmen and Aguirre Pawnshop, who has the better right? (5%)
b. How about between Carmen and Evelyn? (5%). Explain fully.

VI.

Benjie inherited from his father Bonifacio a 250 sq. m. lot, when the latter died on February 14, 1996. Benjie, then in Dubai, was only able to accept the inheritance on March 14, 2000. He thereafter came home, built a house and lived there with his family. Sometime in March 14, 2002, Henry appeared and claimed to be the lawful owner of the said lot. He filed an action for reconveyance to recover the land. It was later proved that during his lifetime, Bonifacio has been in possession of the land since 1981 until his death in 1996, in bad faith. Benjie pleaded as his defense, that Henry's claim has already prescribed. 

Rule on the contention of Benjie, citing the legal/doctrinal basis that is to be applied (10%).

VII.

There are two adjacent lots by a river. Lot # 1, with an area of 1000 sq. m. is owned by Rudy, while Lot # 2, also with an area of 1000 sq. m. is owned by Romy. For a period of 10 years, soil deposits began to accumulate over a piece of land. 25 sq. m. was deposited in Lot # 2, which formerly belonged to Lot # 1. Rudy asserts that accretion cannot validly take place because the subject lots are registered in the Torrens system.

a. Who owns the accretion? Explain fully (5%). 
b. What are the elements of alluvium? (5%).

VIII.

Bernie, a treasure hunter, secured a map indicating the location of a hidden treasure. It was later identified that the land belongs to Bert, an OCW in Kuwait. Despite attempts to find him, Bernie was unable to contact Bert. So he decided to enter the property, opening the steel gate of the property. He conducted his search thereon. True enough, a found the hidden treasure, comprised of precious stones, gold, jewelries and money. Bert learned of Bernie's discovery. He demanded his share of the hidden treasure. Bernie refused. 

What are the rights of Bert and Bernie? (10%).

Land Title and Deeds - Finals

Hindi ito ang exam question ko under Justice Oswaldo D. Agcaoili, mas mahirap ang p*tang ina! Pinaghalo halo yung mga questions, meron pang draft ng adverse claim. But this samplex really helped. Some of the questions are virtual reproductions. Thus, it deserves a lot of thanks to Atty. Gapasin and Ordo Luminis Legis of UST.

From the Library of Carillo and Tapales of Antipolo City.

1.

AB filed his answer in a cadastral proceeding claiming private ownership of Lot. I. However, the court declared the lot as public land. Can AB subsequently file an application for judicial confirmation of title for the same land? [10%]

2.

In a registration case, the OSG requested the Provincial Prosecutor to represent it during the trial. The court granted the application for registration.

(a) On what grounds may the government file a motion for reconsideration? [7%] (b) Within what period may the government file the motion? [3%]

3.

AB is an applicant for registration. As present possessor, CD files his opposition. The court renders judgment in favor of AB, which becomes final.

(a) What is the remedy of AB in case CD refuses to vacate? (5%]
(b) In case CD refuses to comply with the order to vacate, can he be cited for contempt? [5%)

4.

(a) What are the contents of a decree of registration? [5%]
(b) What are the essential requisites for the review of a decree? [5%]

5.

Explain. Registration does not vest title [10%]

6.

AB is the registered owner of land. In 1993, he migrated to the US and obtained a green card. When he came back to the Philippines in 2003, he found CD occupying the land with his house thereon, claiming ownership thereof on the basis of possession.

(a) As counsel to AB what action will you take against CD? [5%]
(b) As counsel for CD, how would you respond to the action of AB? [5%]

7.

AB filed a complaint to nullify CD’s title alleging that the same was obtained through Fraud. CD’s defense is that he acquired his title in regular registration proceedings. He also set up a counterclaim praying that All’s title should instead be canceled since he is an absentee applicant. AB answered back that CD’s counterclaim amounts to a collateral attack on his title and should be dismissed. Decide [10%)

8.

What is the rule in case of double sale of immovable property? [10%]

9.

(a) What is the policy behind the prohibition against the sale of public lands acquired under the homestead and free patent provisions of the Public Land Act? [2%]
(b) AB was issued a flee patent in 1995; He sold one-half of the land to CD with the understanding that the salt shall not be effective until after 10 years. Is the sale valid? [4%] lf your answer is no, what are the sanctions if any? [4%]

10.

(a) What is an innocent purchaser for value? [3%]
(b) Illustrate the principle that a forged deed may he the root of a valid title [7%]

GOOD LUCK!

From the Library of Ordo Luminis Legis, UST Law.

1.

(a) The registration court adjudicates the land applied for to Pedro. The decision having become final, Pedro applies for a writ of possession. Against whom may the writ be issued? (4%)
(b) A writ of possession is served by the sheriff upon Jose, the occupant, but the latter refuses to vacate. Is Jose liable for contempt for non-compliance with the writ? (3%)
(c) Ten years after the finality of the judgment, Pedro applies for a writ of possession. Jose against whom the writ is served says the writ is not enforceable since it is already barred by prescription. Is Jose correct? (3%)

2.

(a) May land already covered by a homestead patent be the subject of subsequent cadastral proceedings? (4%)
(b) On August 5, 2002, Pedro obtained a homestead patent for land covering 1000 square meters. Pedro sold 1/2 of the land to Jose under a deed of absolute sale dated August 5, 2003 but it was stipulated that the sale shall not take effect until August 6, 2007. Is the sale valid? (3%)
(c) If only a portion of the homestead is sold within the prohibitory period, can the government file an action for the reversion of the whole lot to the State? (3%)

3.

(a) What is the evidentiary value of a certificate of title? (5%)
(b) The registration court issues an order for the issuance of a decree in favor of Pedro. The LRA refuses to issue the decree since, upon verification the land had already been titled in the name of Jose. Can Pedro compel the LRA to issue the decree in his name on the ground that the duty of the LRA is ministerial? (5%)

4.

(a) Pedro lost his title and other papers when he was held UP in a bus. Meantime, Pedro went to the US and spent sometime with his family there. When he returned to the country he found out that his land was already occupied by Jose with his house and other improvements thereon. Pedro wants to eject Jose but he no longer has his title as proof of ownership. Pedro seeks your advice. What will you tell him? (5%)
(b) In the event a court action is filed by Pedro against Jose, can Jose set up the defense that he has already acquired ownership of the land through acquisitive prescription? (5%)

5.

(a) Pedro files an action for ejectment against Jose and attaches to his complaint a copy of his title as proof of ownership. Jose’s defense is that Pedro’s title was obtained through fraud and hence Pedro has no cause of action against him. Is Jose’s defense valid? (5%)
(b) In the same case, Jose also alleges, as additional defense, that Pedro cannot sue without being joined by his wife because the property, according to him, is “conjugal” as shown by the fact that the title is in the name of Pedro, married to Maria.” Is Jose correct? (5%)

6.

(a) What are the requisites for the review of a decree? (5%)
(b) Cite five (5) specific instances of extrinsic fraud as a ground for the review of a decree (5%)

7.

(a) Pedro is in actual possession of land and has for a long time been exercising acts of ownership thereon. He discovers later that the land was already titled in the name of Jose in 1990. Pedro files an action for reconveyance alleging that Jose’s title was obtained through fraud. Jose retorts that Pedro’s action is already barred by prescription and should be dismissed outright. Is Jose correct? (5%)
(b) Pedro files an action for reconveyance against Jose. Jose alleges that reconveyance is no longer proper since he (Jose) had already sold the land to Juan who, in turn, had sold it to Mario. What is the remedy of Pedro if any? (5%)

8.

(a) In what instances may a contract con pacto de retro be presumed to be an equitable mortgage? (5%)
(b) Where the mortgagor defaults in the payment of his obligation, what are the options open to the mortgagee? (2%)
(c) What shall the purchaser at a foreclosure sale do so that he may be placed in possession of the property mortgaged (3%)

9.

(a) Pedro sells land to Jose who obtained a transfer Certificate of title for the land. In an action filed by Juan, as the true owner, Jose’s title is cancelled since Pedro, the vendor, is proven to be a mere impostor. Can Jose claim damages against the Assurance Fund? (5%)
(b) Explain and illustrate the principle that “a forged deed may be the root of a valid title.” (5%)

10.

(a) What is the purpose of an adverse claim? (2%)
(b) When may a claim or interest be registered as an adverse claim? (3%)
(c) What is the purpose of a notice of lis pendens? (2%)
(d) In what cased is the notice of lis pendens proper? (3%)

GOOD LUCK!

Obligations and Contracts - Finals

This are the reconstructed questions asked in my final exams in OBLICON under Atty. Jose Ortiz, Jr.

I.

A, B, C, D and E agreed to be solidarily indebted to X in the amount of P50,000. X demanded payment from A. A rejected the payment on the grounds of:

a. B was 15 years old at the time of the perfection of the contract
b. C debt was condoned by X
c. D was insane at the time of the perfection of the contract
d. E debt was extended by X for 6 months without the consent of his co-debtors

Give the effect of the following defenses of A, if they were found to be true.

II.

Sabit owed Patong P10,000. It was agreed that Sabit may give his typewriter, his refrigerator or his ring in December 1, 2001 to satisfy the debt. It was expressly stated that Sabit may give it in lieu of the P10,000. In March 1, 2001, typewriter was deliberately destroyed by Sabit. In April 1, 2001, the refrigerator was destroyed by fire. In November 1, 2001, armed robbers stole the ring. Sabit claims the obligation is extinguished. Decide.

III.

Erap and GMA are close friends. In view of theior friendship, GMA owe Erap P1 million payable “when her means permit.” The friendship grew sour, and Erap wanted to demand payment.

As legal counsel, what remedy would you advise Erap?

IV.

Pedro sent as telegram to Maria, March 1, 2001, which is an offer to buy a land for P100,000. It was received by Maria on March 2 at 1:00 PM. She sent her acceptance to Pedro and was received at 5:00 PM. But at 2:00 PM, Pedro withdrew his offer, sent it via telegram, and was received 4:00 PM. Decide.

V.

Lana Puri owns a house at Q.C. and rents it to Dina Virginia, without written contract for 2 years at P8,000/month. In January 1, 2001, Lana offered to sell the leased premises orally to Dina for P10 million, within 90 days from January 1, 2001. Dina gave P100 as option money.

Before the end of the 90 day period, Dina went to Lana to purchase the said premises. But Lana did not want to sell the said property on ground that Mann Y. Akiss had offered t purchase the leased premises for P15 million. Dina sued to compel Lana to accept the money and execute the necessary deed of sale. Lana alleged the following:

a. That there was no perfected contract of sale.
b. That the option is unenforceable under Article 1403 of the Civil Code.
c. That the option money is insufficient.

Decide.

Objectives

1. Distinguish motive from cause.
2. Distinguish voidable and rescissible contracts.
3. What is liberty of contracts? Is it absolute? Why?
4. When is there fraud?
5. Distinguish rescission as a remedy in Article 1191 from Article 128?