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Questions: (Submit questions with hand written answers.

1. Give the different principles of contracts with example of each.
2. A contract of lease was entered into between Sektab and Pogi, whereby the
former leased unto the latter her property for a term of 10 years at an
agreed monthly rent of P50,000.

On the 5
year of the lease, Pogi dies.

Pogis heirs are now taking over possession of the property to continue the
lease for the remaining unconsumed period thereof an act which was
vehemently objected to and opposed by Sektab, contending that with the
demise of Pogi, the lease is extinguished and therefore the heirs have no
right to continue the remaining unconsumed portion thereof.

2.1. Briefly rule on the contention of Sektab with legal reasons.
2.2. If you were the judge, how will you on rule the contention?
2.3. If on the contract of lease it is expressly stipulated that the right under
the lease is non transmissible, will you have the same answer? Explain
briefly with legal reasons.

3. Dagz offered his property to Oblack for P5million. Oblack accepted the offer
but only for P3.5million.

3.1. Is there a perfected contract between the parties? Explain briefly.
3.2. If so, what contract was entered into between parties?
3.3. If on the counter offer of Oblack, Dagz countered for P4 million which
was accepted by Oblack:
3.3.1. Is there a perfected contract between parties? Explain briefly.
3.3.2. What contract has been entered into between parties?
3.3.3. What are the rights and obligations between the parties thereto?
3.3.4. Should anyone of them withdraw from the contract, what is the
right of the other against the withdrawing party?

4. What are the different grounds for vitiating ones consent? Give an example
for each.
5. Pursuant to a barangay resolution, the barangay public plaza shall be leased
to its constituents, or to anybody who is interested, to undertake any
business activities on the allotted portion of the plaza for a monthly rent of
P15,000 for each awardee, in line with its livelihood program.

Major L., who is a resident of the barangay objected and opposed the said
livelihood program of the barangay contending that the same is illegal.
Briefly rule on the contention by Major L. with legal reasons.

6. Cause is an essential requisite of a valid contract which establishes the
obligation. Ms. Batangas City contracted the services of Maam A. for the
construction of her 5-storey commercial building near the Batangas City Port
for a project cost of P20million.

6.1. As regards to Ms. Batangas City, what is the cause of the contract?
Explain briefly with legal reasons.
6.2. As regards to Maam A., what is the cause of the contract? Explain
briefly with legal reasons.

7. Mr. Gabs mother really intended to give him her property covered with TCT#
143 at the Registry of Deeds for the province of Cavite. The mother and Mr.
Gab approached the services of a lawyer who prepared for them a Deed of
Absolute Sale over the property for a price of P500,000. Mr. Gabs mother
have other properties remaining to support her in a manner in accordance
with her station in life.

Learning of the sale of the property to Mr. Gab by their mother which in
reality has no cause or consideration whatsoever, David, Mr. Gabs brother,
instituted an action against their mother and Mr. Gab for declaration of
nullity of sale of property.

7.1. Rule briefly on the contention of David with legal reasons.
7.2. If you were the judge, rule briefly with legal reasons on the action by
7.3. As a lawyer of Gab, what defense will you undertake to protect the
interest of Gab as your client? Explain with legal reasons.

8. In a contract of sale, Elton Juan (EJ) offered his property for sale to Luis for
P50 million. Having only with him P10,000 in cash, Luis offered to pay it to EJ
as down payment or earnest money which was accepted by EJ, and the
balance to be paid within 3 months from the down payment which was given
on March 15, 2014.

On the due date of the balance, Luis refuses to pay it on the ground that the
property was occupied by 2 families of squatters.

8.1. Can EJ avail of specific performance against Luis to compel him to pay
for the balance in exchange for the property? Explain briefly with legal
8.2. On the other hand, for failure by EJ to accept the payment by Luis
covering the balance, can Luis avail of rescission as a remedy against
EJ? Explain briefly with legal reasons.

9. Nora sold her property to Vilma for P2 million. Nora paid the said amount in
cash. As close friends to each other, no receipt or any note or memorandum
in writing was given by Nora to Vilma for the sale of property.

When Vilma is already demanding the title as well as the execution for the
deed of absolute sale from and by Nora, Nora refuses. Vilma thereafter
instituted an action against for specific performance.

9.1. As a lawyer for Nora, what defense will you undertake to defeat the
action by Vilma. Explain briefly with legal reasons.
9.2. As a lawyer for Nora, how will you do it? Explain briefly with legal
9.3. If you were the judge, what will be your ruling? Explain briefly with
legal reasons.
9.4. If Nora issues a receipt to Vilma for P2 million, as the judge, rule on
the action by Vilma. Explain briefly with legal reasons.

10. Describe briefly void contracts from inexistent contracts.

10.1. Joan forged the signature of Stenographer Lourdes by making it
appear that the latter sold her property to the former for P1 million.On
the basis thereof and the stolen title covering the property, Joan
transferred title of the property into her name without the knowledge
of Lourdes, who is in the US.

After 35 years, Lourdes returned from the US and discovered the
property was already in the name of Joan. Immediately, she filed an
action against Joan before the RTC where the property is located,
seeking the nullity of the deed of sale, cancelation of the title, and
reinstating her title thereto and for damages. Joan interposed the
defense of prescription and latches against Lourdes.

Decide briefly with legal reasons.

10.2. Myr obtained a homestead patent from the government covering an
agricultural property with an area of 5 hectares. Within the restrictive
period of 5 years from the issuance of the patent and because of
financial difficulty, Myr sold the property to Tabs for 2 million. Both
Myr and Tabs knew that the property cannot be sold within the
restrictive period but nevertheless went ahead on the sale and
purchase thereof.

Subsequently, Tabs took possession over the property while awaiting
the expiration of the 5 year restriction period.

Myr dies before the 5 year restriction could expire. She was succeeded
by Tabs2 as her only legitimate heir who exerts efforts to recover the
property form Tabs. Tabs refuses to return the property to Tabs2.

10.2.1. What is the status of the sale between the two parties? Explain
briefly with legal reasons.

10.2.2. Can Tabs2 recover back the property from Tabs? Explain briefly
with legal reasons.