1.

Santiago sells to Bermejo 5000 sacks of rice at P1,000 per sack from the stock then stored in the
warehouse of Santiago. Unknown to the parties, the warehouse contains only 480 sacks of rice.
What is the status of the contract between Santiago and Bemejo? Who owns the sacks of rice?
2. San Manuel Corp, which maintains a professional basketball team, entered into a contract with
Armstrong Rubber Co for the latter to provide a pair of shoes to the formers two imported
basketball players. Charles Jordan and Michael Barkley. Armstrong Rubber Co was instructed to
make a pair for either or both players in case the company did not manufacture shoes for their
size. No pair, was however immediately available for both the players. Charles Jordan, who is
65 tall and wears size 12 rubber shoes was given a pair the following day from the 300 pairs
that Armstrong was in the process of manufacturing for its customers at the time the orders
were received. Michael Barkley, who is 7 tall and wears size 18 shoes was provided three days
later, with a pair that was made specially for him since Armstrong does not make shoes of his
size. What kind of contracts were entered into for the shoes provided to the two basketball
players?

1. Santiago sells to Bermejo 5000 sacks of rice at P1,000 per sack from the stock then stored
in the warehouse of Santiago. Unknown to the parties, the warehouse contains only 480
sacks of rice. What is the status of the contract between Santiago and Bemejo? Who owns
the sacks of rice?
2. San Manuel Corp, which maintains a professional basketball team, entered into a contract
with Armstrong Rubber Co for the latter to provide a pair of shoes to the formers two
imported basketball players. Charles Jordan and Michael Barkley. Armstrong Rubber Co
was instructed to make a pair for either or both players in case the company did not
manufacture shoes for their size. No pair, was however immediately available for both the
players. Charles Jordan, who is 65 tall and wears size 12 rubber shoes was given a pair the
following day from the 300 pairs that Armstrong was in the process of manufacturing for its
customers at the time the orders were received. Michael Barkley, who is 7 tall and wears
size 18 shoes was provided three days later, with a pair that was made specially for him
since Armstrong does not make shoes of his size. What kind of contracts were entered into
for the shoes provided to the two basketball players?

1. Santiago sells to Bermejo 5000 sacks of rice at P1,000 per sack from the stock then stored in
the warehouse of Santiago. Unknown to the parties, the warehouse contains only 480 sacks
of rice. What is the status of the contract between Santiago and Bemejo? Who owns the
sacks of rice?
2. San Manuel Corp, which maintains a professional basketball team, entered into a contract
with Armstrong Rubber Co for the latter to provide a pair of shoes to the formers two
imported basketball players. Charles Jordan and Michael Barkley. Armstrong Rubber Co
was instructed to make a pair for either or both players in case the company did not
manufacture shoes for their size. No pair, was however immediately available for both the
players. Charles Jordan, who is 65 tall and wears size 12 rubber shoes was given a pair the
following day from the 300 pairs that Armstrong was in the process of manufacturing for its
customers at the time the orders were received. Michael Barkley, who is 7 tall and wears
size 18 shoes was provided three days later, with a pair that was made specially for him
since Armstrong does not make shoes of his size. What kind of contracts were entered into
for the shoes provided to the two basketball players?