OBLIGATIONS AND CONTRACTS ( To be written in a yellow paper to be submitted next Thursday,

no late submissions will be allowed. Thursday will be recitation day)

1. What is obligation? What are its requisites?
2. In an obligation to give, what are the rights of the obligee? (a) What are the duties of the obligor?
3. If the object of the obligation is lost or destroyed through a fortuitous event, can the obligor still be
held for damages? (a) What are the requisites of a fortuitous event?
4. In obligations to give or to do, when does an obligor incur in delay?
5. Rocco is a holder of an ordinary timber license covering an area of 5,600 hectares. He executed a
deed assigning to Enzo all his shares of stocks for Php300,000.00. he also executed a deed os
assignment over his enterest in a pending application for additional forest concession covering one
half of the area but which was disapproved. Is Enzo liable to pay? Discuss
6. What rules shall be followed in cases of improvement, loss, or deterioration of the thing during the
pendency of a condition in an obligation to give?
7. Midas entered into a contract for the purchase of two lots from Pepe. Each lot costs one million
pesos. Both agreed that the payment shall be made in a monthly installment which must be made
before the 1oth day of every month. Midas had already paid Php500,000 for each lot when he
failed to pay his monthly installment. Pepe filed an action for rescission of both contracts
contending that there was a breach of the obligation. Will the action prosper? Why?
8. Nora sold and delivered a car to Vilma with the agreement that after ten days, the latter would pay
the amount of P600,000.00 to the former. Nora filed an action for rescission of the contract on the
ground that Vilma failed to pay the price. (a) Will the action prosper? (b) Suppose the delay in the
payment was only for one day, will you have the same answer? Why? (c) Suppose there is a
reservation of the right to rescind in case of breach of the obligation, is there a need to ask for
judicial intervention in the rescission of the contract? Why?
9. What is the effect if there is breach of contract committed by both parties?
10. In an alternative obligation, the choice has been given to the obligee and the same has been
communicated. What rules shall be observed in case of loss of the thing?
11. Ana, Nina and Tina bound themselves to pay Php900,000 to Hanna on January 15, 2010. When
the obligation became due and demandable, Hanna demanded from Nina the full amount of the
obligation. Is the action of Hanna correct? Why?
12. When may the courts delete the penalty clause in a contract?
13. State the rules when a third person pays the obligation of another.
14. There was a loan granted to an obligor who, however, failed to pay the loan but delivered a parcel
of land to the obligee. Prior to the delivery, the obligor mortgaged the property to a third person. Is
there dacion en pago? Why?
15. What is the difference between dacion en pago and pactum commisorium?
16. What is consignation? Explain the procedure for a valid consignation.
17. When shall consiganation without tender of payment produce payment?
18. What are the requisites of a valid compensation?
19. X owes Y the amount of one million pesos. Without X’s knowledge and consent, Y and Z entered
into an agreement whereby Z assumed X’s obligation. Z, however turned out to be insolvent. Is
there novation? Why? (a) What is the effect of Z’s insolvency in relation to X’s obligation?
Explain.
20. What are the requisites of a valid novation ?
21. JUNE corporation entered into a contract of loan with MAY secured by a chattel mortgage. When
JUNE Corporation failed to pay, the bank foreclosed the mortgage which was objected to by
JUNE contending that there was a novation of the contract when it executed a real estate mortgage
when an extension of the loan was granted by the bank. Is the contention of the corporation
correct? If you were the Judge, decide.
22. What is the effect of novation, compensation, confusion, or remission that may be obtained by one
of the obligors? Explain.

PREPARED BY Judge CYNTHIA MARTINEZ FLORENDO.