MAPUA INSTITUTE OF TECHNOLOGY

School of Electrical, Electronics and Computer Engineering

Homework 1:
List of Problems

Submitted / Compiled by:

BAGAPORO, Renz Christian T.
ECE70 / B11

Submitted to:
Engr. Jose B. Cardenas

Date Submitted:
16 October 2015
 TITLE I
OBLIGATIONS

CHAPTER 1 - General Provisions

P1. X saw at about one (1:00 p.m.) in the afternoon a child alone in a shopping mall. The child who
strayed from Y, his mother, was in tears and appeared very hungry. Out of pity, X took him to a
restaurant to eat for which he spent 150.00Php. Y did not give her consent to the good deed of X.
Furthermore, they were on their way home before the child got lost. Is X entitled to be reimbursed
by Y for the amount of 150Php?

P4. D (debtor) borrowed 10,000Php from C (creditor). On the due date of the loan, D could not pay
C because he lost to a robber the 10,000Php intended for C. In addition, he suffered financial
reverses, and he was short of cash even for his current family’s needs. Is D legally justified to refuse
to pay C?

CHAPTER 2 – Nature and Effect of Obligations

P1. S (seller) sold to B (buyer) on July 5, a horse named Silver to be delivered on July 20.
However, on July 15, S sold again and delivered the horse to T. Who has the better right to Silver?
P4. D (debtor) borrowed P20, 000 from C (creditor) payable after one (1) year. Is D liable to pay
interest?

CHAPTER 3 – Different Kinds of Obligations

Section 1 – Pure and Conditional Obligations

P1. D (debtor) borrowed P20, 000 from C (creditor) payable on or before August 30. Before the
arrival of the due date, C agreed to the promise of B to pay C if B wants. Can C insist that B pay
not later than August 30?
P4. S sold a parcel of land to B for P240, 000 payable in installments of P20, 000 a year. The
land was delivered to B who obtained ownership thereof. After B had paid P200, 000, he could
no longer continuing paying in view of financial reverses but he was willing to pay the balance of
P40, 000 if given more time. Thereupon, S sued for rescission under Article 1191. If you were the
judge, would you grant rescission?
Section 2 – Obligations with a Period

P2. D binds himself to give 10,000Php to C upon the death of the father of D. Is the obligation of D
conditional or one with a period?

P3. D obtained a loan from C in the amount of 50,000Php, payable on August 10. As security for
his debt, D mortgaged his car in favor of C. The car, however, was substantially damaged without
the fault of D. what rights, if any, does C have under the law? May C demand payment from D even
before August 10?

Section 3 - Alternative Obligations

P1. D (debtor) borrowed P10, 000 from C (creditor). It was agreed that D could pay P10, 000 or
deliver his piano on August 22. On August 20, D informed C that the former would deliver the
piano. Can D still change his period considering that he was given the right choice?

P2. Under a contract, X (obligor) promised to deliver to Y (obligee) item one, or item two, or item
three. Y was given the right of choice. What is the liability of X in case, through his fault?
a. Item two is lost or destroyed;
b. All the item are lost or destroyed?

Section 4 - Joint and Solidary Obligations

P3. A owes B and C, solidary creditors, the sum of P20, 000:

a. Can C condone the debt without the consent of B?
b. Can C assign his rights without the consent of B?

Section 5 – Divisible and Indivisible Obligations

P1. A and B bind themselves to pay C their loan of P10, 000 on a certain date. Is the obligation
divisible or indivisible?

Section 6 – Obligations with Penal Cause

P1. X promises to deliver Y to a specific horse. Their contract contains a penal clause that in case
of non-fulfillment, X shall pay a penalty of P10, 000. X wants to just pay that penalty instead of
delivering the horse. Has Y the right to refuse to accept the penalty in lieu of the horse?

P2. In the same problem, X was able to show that Y did not suffer any damage by X’s violation of
his obligation. Can Y still enforce the penalty?

CHAPTER 4 - Extinguishment of Obligations

Section 1 – Payment or Performance

P1. D (debtor) owes C (creditor) P10, 000 with G as guarantor. On the due date of the obligation,
T, a third person, offered to pay the obligation of D. can C legally refuse to accept the payment?
How about an offer of payment from G?

P2. M (maker) issued a promissory note for P10,000 in favor of P (payee) who lost the note which
was found by T who demands payment from M. M did not know that the note was lost by P. is M
justified in paying T?

Section 2 - Loss of the Thing Due

P2. X obliges himself to deliver a specific thing to Y on a certain date. The thing was lost by X
without his fault and before he has incurred in delay. Does it mean that X is already exempt from
liability?
P3. Suppose in the preceding problem, the thing was lost through the fault of Z, a third person.
State the effect of the loss as far as X, Y and Z are concerned.

Section 3 - Condonation or Remission of Debt

P1. D (debtor) borrowed money from C (creditor) evidenced by a promissory note assigned by D.
a. What presumption arises if:
1. The promissory note is voluntarily given by C to D?
2. It is found in the possession of D?
b. When will the presumption of remission arise?
P2. Suppose in the same problem, the debt of D, aside from being guaranteed by G, is secured
by a pledge of a certificate of shares of stock delivered by D to C. What presumption arises if:
a. The debt of D is condoned by C?
b. The certificate is later found in the possession of D?

Section 4 - Confusion or Merger of Rights

P1. A, B and C are jointly liable to D in the amount of 15, 000. Subsequently, D assigned his credit
to C in consideration for goods sold by C to D. Give the effect of the assignment.
P2. Assuming the obligation of A, B, and C is solidary, distinguish the effect of the assignment
from the first problem.
Section 5 – Compensation

P1. D borrowed P50, 000 as character loan (no security) from a bank. Despite demands for
payment after the loan fell due, D did not pay the bank. D has a savings deposit of P40, 000 with
the bank. Has the bank the right to apply the deposit to the payment of D’s debt?
P2. D owes C P10, 000 payable on November 20. C owes d P10, 000 payable on October 20.
Can compensation also take place although the debts are not payable on the same date?

Section 6 - Novation

P1. T (third person) tells C (creditor) that T will pay the debt of D (debtor). C agrees. Is D released
form his obligation to C?
P2. Suppose in the above problem, D proposed to C that T would substitute D as the new debtor
to which C agreed. Is D still liable to C in case of insolvency of T?
 TITLE II
CONTRACTS

CHAPTER 1 - General Provisions

P1. A and B entered a contract not specifically provided in the Civil Code. Is the contract valid
and binding?
P2. S (seller) and B (buyer) entered into a contract of sale. It was agreed that the price shall be
determined by T, a third person. Can S or B refuse to be bound by T’s determination of the price
if he does not agree with the amount thereof?

CHAPTER 2 - Essential Requisites of Contracts

Section 1 - Consent

P1. In a contract containing an option period, when is the offeror not allowed to withdraw his offer
even before acceptance by the offeree? When is the offeror allowed to withdraw his offer even
after acceptance?
P5. Suppose in the same problem, what S sold to B, hardware owner, are 500 bags of cement. S
had every reason to believe that the price of cement would go down. After two weeks, it did go
down. Has B the right to have the sale annulled?
Section 2 - Object of Contracts

P1. S sold to B for P100, 000 a parcel of land belonging to S located in his hometown without
specifying its exact location and area. Is the sale valid?
P2. S has several pigs. Under a contract of sale, S binds himself to deliver a pig to a B for P3,
000 if the pig has a weight of at least 30 kilos. State the binding effect of the sale.

Section 3 - Cause of Contracts

P2. S sold B a specific parcel of land for P500, 000. B failed to pay. Has C the right to have the
sale declared void by the court on the ground of absence of cause for non-payment of the price?
P3. X gave P10, 000 to Y who signed a receipt stating: "This is to acknowledge payment by X in
the amount of P12, 000." X later complains that he received nothing from Y for the P10, 000. Is Y
bound to return the P10, 000?

CHAPTER 3 - Form of Contracts

P1. S (Seller) and B (Buyer) entered into a contract of sale of a parcel of land. The sale is
embodied only in a private document and not in a public instrument because it was not
acknowledged before a notary public as required by law. Is the sale valid?

P2. In the same example, what rights, if any, are acquired by the contracting parties?

CHAPTER 4 - Reformation of Instruments

P1. S sold his horse “X” to B under a written contract of sale. What B thought S was selling him
is horse “Y.” Can S ask for the reformation of the contract against the objection of B who is
agreeable to the sale of horse “X?”

P2. Suppose in the same example, S was intending to sell his horse “Y.” Give the three (3) cases
when he can ask for the reformation of the contract.

CHAPTER 5 - Interpretation of Contracts

P1. S sold to B his condominium unit “including all its contents.” In the unit, there is an antique
chair belonging to X which X agreed to sell to S. Is the chair to be included in the sale of the unit?

P3. Suppose in the same problem, the professional fee was agreed upon, but is not clear from
the written contract prepared by X upon the request of Y whether it should be the fixed amount of
P200, 000 or 6% of the cost of construction. How much is Y liable to pay?

CHAPTER 6 – Rescissible Contracts

P1. D owes C P100, 000. Since D fails to pay, C expressed its willingness to accept the car of D,
with the same value, more or less, in payment of his debt. D, in bad faith, sold the car to X. Has
C has the right to ask for the rescission of sale?

CHAPTER 7 - Voidable Contracts

P2. In the same problem, suppose S, upon reaching the age of majority, decided to ratify or
respect the contract. Has B the right to refuse the ratification and demand mutual restitution of
the property and the price?

CHAPTER 8 - Unenforceable Contracts

P1. I, an insane person, entered into a contract with M, a minor. What is the effect of ratification:
a. by either; and
b. by both, after becoming incapacitated?

P3. S orally agreed to sell his piano for Php7, 000 to B who made a partial payment of Php1, 000.
Later, S denied there was such a sale. Can B enforce the sale considering that the contract was
oral and the price was more than Php500?

CHAPTER 9 - Void or Inexistent Contracts

P1. In consideration of Php10, 000 given by X to Y, the latter agreed to burn the house of Z. Later,
X told Y to forget the agreement and to return the money. Y refused. Is X entitled to recover from
Y?

P2. M, a minor, bought a bicycle for Php2000 from N, who is not a minor. Under the law, the
contract is voidable because M is incapacitated to give consent because of his minority. Give the
situation by reason of which M cannot recover the Php2000 from N.
 ADDITIONAL CASES

I. XYZ Case

X the supervisor, informed Y the technician that the computer system crashed due to a power
surge. After sometime, Y reported back to X that repairs can be made for P20,000. X reported
the same to the Chief Finance Officer who then instructed Y to dig up all the underground and
building cabling before the insurance adjustor appears. P500,000 could then be claimed from the
insurance company. Y refused.
When later Z – the newly hired manager and X’s boss, heard about it he congratulated Y for his
integrity. Y said that it doesn’t matter because X earlier instructed him to do it. There is no
confidential mechanism in place for reporting wrong-doings internally, and no legal protection for
whistle blowers. The company is also losing business and have to refund some of its customers.
There are rumors this is not the first time the company made spurious insurance claims. Assume
you are Z, an ECE engineer. What will you do, and why?

II. Bayani Case

Jose Bonifacio, the majority stockholder and chairman of the board of directors of Bayani
Company, was dissatisfied with the top executives of the company, a manufacturer of LED
screens. The stockholders had invested P50 million and the return on their investment had been
poor for the past 3 years. In the last meeting of the Board at the start of the year, Bonifacio fired
the chief executive officer and (with Board approval) appointed himself as the new CEO. At the
first management meeting, he asked two of the managers to stand up and then fired them on the
spot. At the budget review meeting that followed, he ripped up the departmental budgets that had
been submitted for his review and yelled at the managers for submitting weak targets. He then
ordered everyone to submit new budgets calling for at least a 13% increase in sales and
announced that he would not accept excuses for results that fell below target.
Andres Mabini, an ECE engineer working for the production manager, discovered toward the end
of the year that his boss, Manuel Rizal, had not been scrapping defective LED screens that had
been returned by customers. Instead, he had been shipping them (repaired) as new to customers
in order to avoid booking losses and increase production output. Quality control had deteriorated
during the year as a result of the higher production rate and returns of defective screens were
running as high as 17% (previously 3%) of the new screens shipped. Mabini even managed to
derive an equation showing linear relationship between production volume and returns. When he
confronted his boss with his discovery, Manuel told him to mind his own business. And then, in
the way of a rationalization for his actions, Manuel said, “Lahat kaming manga managers ay
ginagawa lahat nang paraan para maabot ang target”.
Manuel Rizal and Bonifacio are both ECE engineers, Rizal from MIT and Bonifacio from the other
MIT. Bonifacio also has an MBA from Ateneo.