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OBLI Samplex 1 With Answers
OBLI Samplex 1 With Answers
3. A, B, C and D are obliged to give X, Y and Z P12,000. X may collect from A how
much?
SUGGESTED ANSWER: P12,000. X being a solidarity creditor may ask for the
payment of the whole amount in behalf of his co-creditors subject to a responsibility of X
to give the latter their corresponding shares. Similarly, A as a solidary debtor may be
required to pay the whole amount of the obligation subject to reimbursement from his co-
debtors.
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 3
7. A and B are indebted to X and Y for P10,000. A and B share in the debt in the ratio of
1:3 while X and Y share in the credit in the ratio of 2:3.
a. How much may X collect from A if the debtors are joint debtors, while the
creditors are joint creditors?
COMPUTATION:
Proportionate Share of A:
¼ x P10,000 = P 2,500
COMPUTATION:
Proportionate Share of X in the credit:
2/5 x P10,000 = P 4,000
9. A, B and C are solidary debtors of X in the amount of P3,000. X renounces the share
of A and A accepts the renunciation. Thereafter B becomes insolvent. What is the legal
effect of the renunciation?
SUGGESTED ANSWER: A will be liable for P500, while C will be liable for
P1,500 (P1,000 + P500). Since the remaining obligation is P2,000 after the renunciation
of A’s share, and thereafter B becomes insolvent, A and C would have to absorb the debt
corresponding to B in the amount of P1,000. This shall be divided equally by A and C.
10. A, B and C are solidary debtors of X in the amount of P30,000. C was insane at the
time the obligation was constituted. What is the legal effect?
11. A, B and C are obliged to deliver a specific horse to X, Y and Z. What would be the
legal effect when C cannot comply with his obligation?
SUGGESTED ANSWER: T can recover P8,000 from D, the law provides that
only the amount to which the creditor has benefited could be reimbursed to the third
person paying if the payment was without knowledge of the creditor. If D cannot pay, T
cannot go after G to collect. (1236)
13. D owes C P10,000. T offers to pay D’s obligation and tells D that D need not
reimburse him. However, D does not give his consent to T’s offer not to be reimbursed.
C, nonetheless, accepts the payment from T. Was the payment valid?
14. D obtained a loan of P10,000 from C who was in his right mind at the time he
granted the loan. On due date, D paid his obligation of P10,000 to C who had since
become insane. C lost P4,000 of the amount he received and spent P6,000 for his food
and other necessary expenses. Was the obligation extinguished?
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 6
15. D owes C the following debts: P4,000 due on May 1; P4,000 due on May 8; P4,000
due on May 15; P4,000 due on May 22; P4,000 due on May 29; and P4,000 due on
June 5. The debts represented the price of magazines which were delivered to D on a
weekly basis. Of the six debts, the one due on May 22 is secured by a pledge of D’s
ring. By agreement of the parties, C may demand payment even before the due date of
the debt. As of May 31, D had not paid any of the six debts. On May 31, D wanted to
make payment but he had only P4,000. How is the payment to be applied?
16. Refer to no. 15 Assuming that D did not designate the debt to be paid when he
remitted the amount of P4,000 to C on May 31. C issued a receipt for the payment he
received from D but he did not also designate the debt that was being paid. How would
the payment be applied?
SUGGESTED ANSWER: The payment shall be applied to the debt due on May
22 since it is the most onerous.
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 7
17. D owes C the following debts: P200,000 due on June 1, 2008 secured by a car;
P200,000 due on May 1, 2008 with 10% interest; P300,000 due on May 1,2008 with 8%
interest; P300,000 due on May 1,2008 secured by house and lot; P200,000 due on April
1,2008 and P300,000 due on March 1, 2008. By agreement of the parties, C may
demand payment even before the due date of the debt. Today is May 1, 2008 D had not
paid any of the six debts. D wanted to make payment but he had only P1,000,000. How
is the payment to be applied?
Balance 800,000
Balance 580,000
Balance 256,000
The remaining P 256,000 shall be distributed proportionately to the debts that are due
and demandable as follows:
18. Francis, husband and Mitch, wife are legally separated. By order of the court which
decreed the legal separation, Francis is obliged to give a monthly support of P20,000 to
Mitch payable in advance within the first five days of the month. Mitch owes Francis
P20,000 by way of loan. On the other hand, Francis has not yet given Mitch’s support for
P20,000 for the preceding month and another P20,000 for the present month. All the
debts are due. Can compensation take place?
SUGGESTED ANSWER: Yes. If Mitch demands her support for the current
month, Francis may claim compensation as regards the loan that Mitch owes him.
19. D owes C P20,000 with G as Guarantor. C, on the other hand, owes D, P15,000.
Both debts are already due but D is insolvent. Can compensation take place?
20. D owes C P20,000 due on June 20. C owes D P14,000 due on June 15. On June 12,
C assigned his right to X. D consented to such assignment without any reservation of his
right to the compensation. On June 20, how much may X collect from D?
21. D owes C P30,000 due on June 20. C owes D the following debts: P15,000 due on
June 2; P4,000 due on June 14; P6,000 due on June 16; and P3,000 due on June 18.
On June 17, C assigned his right to X. C notified D of the assignment but D did not give
his consent thereto. How much may X collect from D on June 20?
22. Refer to no. 21. Assume the same facts except that when C made the assignment of
his credit to X, C did not notify D about it. It was only on June 20 when X went to D to
collect that D learned of the assignment. How much may X collect from D?
23. D owes C P50,000. Subsequently, D proposed to C that T will assume his (D’s) debt.
C accepted the proposal of D. On due date, T could not pay because of his insolvency
which was in fact existing but was not known to D or of public knowledge at the time that
he delegated his debt. Can C hold D liable?
SUGGESTED ANSWER: C cannot hold D liable because his (D’s) obligation was
extinguished when he was substituted by T. (1295)
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 10
24. D obliged himself to give 10 grams of shabu to C. Later, the parties agreed that D
would instead give to C 10 sacks of rice. Is the novation valid?
25. S sold his cabinet to B for P5,000. The parties gave their consent freely to the
contract before its perfection. After delivery of the cabinet to B and his payment of the
price to S, B was informed by N, his neighbour that B paid too much for the cabinet since
he (N), knew of a similar item that is sold for a lower amount. B now wants to set aside
the contract because he believed he got a bad bargain. Decide.
SUGGESTED ANSWER: B may not set aside the contract based on the
principle of Mutuality of Contract.
26. A and B entered into a joint venture contract whereby B agreed to put up a restaurant
on the lot of A. N, A’s neighbour who owned a lot across A’s lot, learned of the
transaction between A and B. Anticipating that many customers would patronize the
restaurant, N decided to improve his vacant lot for parking. He incurred P20,000 for a
guardhouse and other improvements which he had not yet paid to his contractor. Later,
however, A and B mutually cancelled their earlier contract and entered into a new one
whereby B agreed to put up the restaurant on another lot belonging to A which was
located about 100 meters from the original area. N learned of the cancellation of the
contract and decided that he would sue A and B for damages he allegedly sustained by
reason threof. Decide.
27. D obtained a loan from C amounting to P200,000. To secure the loan, D mortgaged
his lot. C registered the mortgage with the Register of Deeds. Later, D sold the lot to X
who was not aware that the lot was mortgaged. On the due date of the loan, C
demanded payment but D could not pay. Accordingly, C decided to foreclose the
mortgage on the lot. X, however opposed the foreclosure claiming that he was not bound
by the mortgage since he was not a party thereto. Decide.
28. S sold his only horse to B for P30,000. The parties agreed that S shall deliver the
horse one week from the execution of their agreement. B, however, should pay the price
immediately and in certified check. In the place of S and B, it was the custom that
anyone selling a horse should place a horseshoe on its feet. Is the seller bound to place
a horseshoe on the horse?
29. On June 1, S offered to sell a specific generator set to B for P300,000. B sent his
letter of acceptance to S on June 8. On June 10, however, S became insolvent. On June
12, S received the letter of acceptance. Was the contract perfected?
30. P gave a special power of attorney to A to sell P’s house and lot for P2M. On May 7,
A, pursuant to the authority granted to him by P, offered to sell the house and lot to B at
the price of P2M. B accepted the offer on May 8 by sending a letter of acceptance to A
on such date, which letter of acceptance was received by A on May 10. On May 11, P
died before A could inform him of B’s acceptance. Was the contract perfected?
31. On May 1, S offered to sell his car for P500,000 to B who was interested in buying
the same. In his letter to B, S stated that he was giving B up to May 31 to decide
whether to buy the car or not. On May 25, S personally went to B to inform him that he
was no longer willing to sell the car unless the price was increased to P600,000 because
another buyer was interested in buying the car for the said amount of P600,000. May S
validly withdraw his offer?
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 13
SUGGESTED ANSWER: S may validly withdraw his offer to B and all that S
needs to do is to inform B of such withdrawal. Such withdrawal must be made before the
lapse of the period of acceptance, unless there is an option founded upon a
consideration, as something paid or promised. (1324)
32. B purchased 100 pieces of notebook from S at P41.95. When B reached home, he
discovered that the invoice showed a total amount due of P4,915 instead of P4,195. Is
the contract valid?
33. D has been for more than 10 years the personal physician of P, a sickly man of 70
years. D talked to P almost everyday in the course of giving medical service to P to
convince P to donate his lot to D since D told him that he was the only one who could
take care of him. Because of the persistence of D, P finally signed the deed of donation
of the lot in D’s favor with all the formalities required by law. Is the deed of donation
valid?
34. A, who knew that his ring was embellished with glass, told B that the embellishment
was emerald. B, who knew that his watch was gold-plated, told A that it was made of
pure gold. Believing that A’s ring was embellished with emerald and A, believing that B’s
watch was made of pure gold, then entered into a contract whereby they exchanged
their respective articles. A week later, B discovered that the ring was adorned only with
an ordinary glass. Can B ask for annulment of the contract?
SUGGESTED ANSWER: Neither party can ask for annulment since both are
guilty of fraud. The contract therefore is valid. In order that a contract may be considered
voidable and be annulled fraud must not be committed by both parties. (1344)
35. S and B entered into a contract where they made it appear that S was selling his lot
and building to B. The truth, however was that S was donating his lot and building to B.
What is the status of the contract?
36. S and B orally entered into a contract whereby S sold his one-year production of
mangoes to B for P100,000. B gave a downpayment of P20,000 for which S issued a
receipt. What is the status of the contract between S and B?
SUGGESTED ANSWER: The contract is valid. Future things may be the object
of contracts. (1347 par 1)
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 15
37. A died leaving properties estimated at P1M to his sons S and T. Subsequently, S sold
through a private instrument one-half of his inheritance to B for P300,000, although his
share was still to be delivered. What is the status of the contract?
38. S sold his car to B for P100,000 so that he can have money to purchase shabu. B
knew nothing of the motive of S. Was the contract valid?
39. D and C entered into a contract wherein D agreed to give to C P50,000 within 30
days from the date of the execution of their agreement, which however does not state
the consideration received by D from C. What is the status of the contract?
40. G, the guardian of M, a minor sold the fish harvested from the fishpond of M for
P20,000. The fish, however had a value of P30,000. What is the status of the sale?
41. D owes the following creditors: X, P50,000; Y, P60,000; and Z, P90,000. He has
assets valued at P400,000. Subsequently, D donated, among his assets, a parcel of land
valued at P250,000 to C. The donation and acceptance were made in a public
instrument. What is the status of the donation of the land made by D to C?
SUGGESTED ANSWER: Both C and Z have a right to rescind the sale since the
sale is presumed in fraud of creditors having been made by the party against whom
judgment has been rendered.(1387 par 2
43. R, the representative of A, an absentee sold the corn with a value of P30,000 and
the palay with a value of P50,000, harvested from A’s agricultural farm for a total price of
P50,000. A, whose domicile was subsequently known, was informed of the sale made by
G. May A seek rescission?
SUGGESTED ANSWER: A may seek rescission of the total sale to recover the
damages he suffered. (1381 par 2)
44. S, 17 ½ years old sold his bicycle to B, 24, for P12,000. The price is payable in 12
monthly instalments. After reaching 18, S continued to collect the remaining six
installments until the price was paid in full. Can S annul the contract?
SUGGESTED ANSWER: S may no longer annul the contract. There was implied
ratification when S upon reaching the age of majority continued to collect the remaining
instalments. (1393)
45. M, the manager of an electric company offered to by a one-square meter lot from S
for P400. M showed S his power of attorney executed by the electric company and duly
signed by the board of directors. M informed S that the lot would be the site of an electric
post which the electric company would erect. S agreed to the odder of M. M agreed to
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 18
come back the following day to give the company check for the purchase price as well
as the written contract. When M returned to the place of S, S refused to sign the contract
and accept the check. S told M that at any rate, M or the electric company could not
enforce the contract since it was not in writing. Is S correct?
47. D was checking out of a hotel when he found out that he had lost his wallet. Since he
had no money to pay his bills, he texted G, a businessman friend to help him. Upon
reading the text message, G texted M, the hotel manager, who knew G since G was a
frequent guest at the hotel whenever he visited the area. The text message read:
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 19
“Please let D leave. If he does not pay, I will be the one to pay.” No other information was
contained in the text message. Thereafter, D signed a promissory note in favor of the
hotel. Is the promise of G enforceable?
48. S, insane, orally sold his radio to B, 17 years old for P400. When T, the mother of S
learned about the sale, she asked S to give to her the amount that he had received. S
obediently gave the amount of P400 which his mother used to buy their food. What is the
status of the contract?
49. Francis promised to give P10,000 by way of support to Mitch, if Mitch agrees to live
with Francis as his wife without the benefit of marriage. Mitch because she truly loves
Francis accepted his promise. After 6 months, because Mitch was seen with Edgar, her
ex-boyfriend, Francis left their home and never came back. Can Mitch now still receive
the support promised by Francis?
SUGGESTED ANSWER: The contract between Francis and Mitch is illegal and
constitutes an offense, therefore it is void.
OBLIGATIONS & CONTRACTS ZPG & ASSOCIATES 20
50. B, a law student informed O that he needed a bicycle which he would use in going to
and from San Beda College of Law-Alabang. O told B that he may get the bicycle in O’s
room. Was there a perfected contract?