Republic of the Philippines

BATANGAS STATE UNIVERSITY

Pablo Borbon Main II, Alangilan Batangas City
College of Engineering, Architecture & Fine Arts
www.batstate-u.edu.ph Tel. No. (043) 425-0139 loc. 118

Mechanical/Petroleum Engineering Department

ME 527
ME Laws, Contracts and Ethics
Second Semester, AY 2019-2020
Final Examination

Name: _______________________________ Date:___________

Section: _____________________________ Score: __________

Instructions:
Write your answer on ANY clean sheet of paper. Read the problems carefully and write
your answer concisely and legibly.

I. Comprehension. Answer the following situational problems. Identify the type of contract
being describe in the problem. Discuss your answer.

1. S orally sold his lot to B for P100,000.00. S has not delivered the lot and B has not paid
the price.

a. May B Compel S to execute a public instrument evidencing the sale so that he can
register it in the Registry of Deeds? Why or Why not?
b. Suppose that B has given a down payment of say P10,000.00, may B compel S to
execute a public instrument? Why or Why not?
c. Suppose the sale between S and B was in a private instrument, but S has not yet
delivered the lot and B has not yet paid any part of the purchase price, may B compel S to
execute a public instrument? Why or Why not?

2. On November 15,2007, S was intimidated by B to sign a deed selling his farm lot for
P50,000.00 to B because B threatened to shoot him. If the sale is annulled, say, on March
1,2008, what will be the obligation of S and B?

3. D owes C P100,000.00. when D failed to pay , C filed a complaint against him and asked
the court to issue an order attaching the lot of D located in Manila. The court issued a writ
ordering the attachment of the said lot. While the case was pending, D sold his lot located in
Quezon City.
a. Is the sale of the lot located in Quezon City presumed fraudulent? Why?
b. Who may ask for the rescission of the sale? Why?

4. S, a minor, sold his land to b. Upon reaching the age of majority, S, with full knowledge
of his rights in the premises, disposed of the greater part of the proceeds and collected the
unpaid balance of the purchase price from B. Can S still ask for the annulment of the
contract? Explain.

5.S sold to B for lump sum of 8,000.00 a cell phone which he earlier bought from an
authorized dealer and a car stereo which he acquired from a thief. The cellphone is estimated
to have a higher value than the car stereo. The sale between S and B is:
 6.S offered to sell to B a ring, claiming that the stone on the ring is diamond. S knows that
it is not diamond but ordinary glass. May B asked for the annulment of the contract? If yes,
on what ground?

7.M, the manager of an electric company, offered to buy a one square meter lot from S for
P400.00. M showed to S his power of attorney executed by the ele tric 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 offer of M. M agreed to come back the
following day to give the company check for the purchase of 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. Why?

8. X made a verbal promise to give his nephew Y a house and lot if Y married his secretary
Miss Z. Two months later, Y and Z was married. X refused to abide with his promise to
give Y the house and lot. Can Y sue x for breach of contract? Why or Why not?

9.S and B 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? Why or why not?

10. Because of the terrible employment shortage, X signed a contract of employment with
ABC Corporation where he agreed to receive a daily wage of les than the minimum wage
prescribed by law. Is the contract legal and what are its effects?

11.S sold his horse to B for P15,000.00. No date or consideration was stipulated for the
delivery of the horse. While still in the possession of S, the horse gave birth to a colt. Who
has a right to the colt?

12.S agreed to deliver to B 500 cavans of rice at P6oo.00 per cavan. S delivered only 490
cavans deliberately misrepresenting that the delivery consisted of 500 cavans. Can B ask the
court to annul the contract on the ground of fraud? Why or why not?

13.S sold to B a commercial land for P1,000,000.00. S assured B that it is certain that in two
years time, the land would increase in market value by 50% or P1,500,000.00. It turned our that
the market value of the land even decreased to about P800,000.00. Is S liable to B for
misrepresentation? Explain.

14.S orally agreed to sell his piano for P7,000.00 to B who made a partial payment of
P1,000.00. 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 P500.00? Why or why not?

Prepared By:

Engr. Mary Joan Leacille R. Manalo

Instructor I

Checked and Verified By:

Engr. Rocel D. Gualberto

Department Chairman, ME/PETE Dept.

Approved By:

Dr. Jessie A. Montalbo

Dean, CEAFA