17 May 2020 – OBLI Questions/Problems on Chapter 4, Section 4 (Arts.

1275-1277)
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17 May 2020 (Sunday)

TO: MY OBLI STUDENTS

RE: Questions/Problems for Chapter 4, Section 4 (Arts. 1275-1277)
FR: Atty. Harriet Reyes Linsangan

TO MY DEAR STUDENTS:

Please discuss the following questions or problems with your respective groups, and if
necessary with other groups and other classes. Make sure you master the legal
principles appertaining to the problems discussed.

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1. Felice owes Lance P5M due for payment on 31 March 2020. Felice’s sister
Claire owns a 500 square-meter lot in Manila with an assessed value of P8M. With
the consent of Claire, and to secure the payment of Felice’s indebtedness to Lance, the
parties executed a Deed of Mortgage wherein Felice mortgaged to Lance her sister’s
lot on the same day that Felice signed the promissory note in Lance’s favor to
evidence their contract of loan. On 15 January 2020, Claire donated her aforesaid
Manila lot to Lance. On 31 March 2020, Lance demands payment under this
obligation from Felice, who refuses to pay on the ground that her obligation had
already been extinguished by the donation of the lot to Lance. Under the facts, is
Felice’s obligation to Lance now extinguished? (Art. 1275; relate to Art. 1273)

2. Angie is the owner of a beach house in Matabungkay, Batangas worth P10

million. After her death on 5 May 2019, her only heirs, her children – Anjo and
Angge, inherited the property from her and thus became co-owners of the property.
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The siblings decided to offer the beach house for rent to tourists so that the asset may
earn income for them. Upon inspection of the property, however, they found that it
needed necessary repairs which will cost around P500,000.00 to make it serviceable
to tourists. Since Anjo did not have the money, they agreed that Angge will advance
the repair cost, and Anjo will just pay her his P250,000.00 share of the expense six
months thereafter, on 15 March 2020. Angge then advanced the repair cost, and the
beach house was restored to good condition, ready for leasing. Thereafter, realizing
the high cost for maintaining the property, managing employees, and paying national
and local taxes therefor, the siblings sold both their half shares in the property to their
Uncle Domingo, in whose name title to the property was transferred on 28 February
2020. On 16 March 2020, Angge demanded from Anjo payment of his P250,000.00
share in the repair cost for the property which Angie had earlier advanced. Anjo,
however, contends that since Domingo is now the owner of the property, having
bought both their shares, Domingo is now deemed to owe himself. As a consequence,
Anjo’s debt to Angge has already been extinguished by merger. Under the facts, is
Anjo still liable to pay Angge? (Art. 1275)

3. Corazon’s parents died during World War II when she was 3 years old. She
never had the chance to get to know them, or any other member of her family. Since
she did not get married, she grew old having only two persons beside her – her two
house helpers Femy and Jerby, a married couple who had been working for her for
almost 30 years. Corazon was the owner of a 5-hectare lot in Pangasinan which was
cultivated with mangoes, and managed by her devoted caretaker Lucio. Upon
prodding of Lucio, and since it had been difficult for her to visit the lot, she gave him
the right to usufruct over her mango plantation for 20 years from 10 January 2005 to
10 January 2025. On the day that she celebrated her 80th birthday on 15 June 2019,
she then gave the naked ownership of the said mango plantation to the spouses Femy
17 May 2020 – OBLI Questions/Problems on Chapter 4, Section 4 (Arts. 1275-1277)
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and Jerby who were both already in their early sixties. On 15 January 2020, Corazon
died of massive heart attack. After her death, the spouses migrated to Canada, where
their only child was working as a nurse. Before they left, they sold their interest in
the land to Lucio. Is there merger under the factual circumstances obtaining ? (Art.
1275)

4. On 30 April 2019, Prancer borrowed P200,000.00 from Vixen. Rudolf

guaranteed that if Prancer is not able to pay his obligation on 30 April 2020, Rudolf
will answer for the entire obligation of P200,000.00 to Vixen. On 12 October 2019,
Vixen assigned his credit to Donald. On 15 January 2020, Donald assigned the credit
to Gloria. On 12 March 2020, Gloria assigned the credit to Rudolf. On 30 April
2020, Rudolf wants to collect the P200,000.00 from Prancer. Prancer, however,
refuses to pay. Prancer alleges that when the credit was endorsed to Rudolf, this
completely extinguished the obligation of Prancer. Do you agree with Prancer’s
argument? (Art. 1276)

5. Armando and Nicolas owe Dina P400,000.00 payable on 15 August 2019. On

3 June 2019, Dina bought some pieces of jewelry from the store of Armando. As
payment, and instead of paying cash, Dina assigns her entire P400,000.00 credit to
Armando. When the debt fell due on 15 August 2019, Armando went to Nicolas
collecting the amount of P200,000.00 as Nicolas’ proportionate share in the
indebtedness. Nicolas, however, refused to make payment, and claimed that when
Dina assigned the credit to Armando, the principal obligation had already been
extinguished by confusion or merger. Hence, Nicolas is also released from liability.
Does Nicolas’ argument have legal basis? (Art. 1277)
17 May 2020 – OBLI Questions/Problems on Chapter 4, Section 4 (Arts. 1275-1277)
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6. In a promissory note signed on 15 March 2019, Ted, Ned and Red bound
themselves to this tenor: “I promise to pay Tala the amount of P600,000.00 on or
before 15 March 2020.” On 15 January 2020, Tala purchased school supplies from
Ned amounting to P800,000.00. She paid P200,000.00 of the purchases in cash, and
was able to convince Ned to accept the promissory note as payment of the
P600,000.00 balance; hence, the promissory note was endorsed to Ned.

(a) Under the facts, are all the debtors now completely released from
liability under the promissory note dated 15 March 2019? (Art. 1277)

(b) Assume that on 25 January 2020, Red had become insolvent. When
Ned learned about this, he went to Ted asking for payment from him. Ted, however,
avers that he no longer has any liability to Ned whatsoever. Will Ned be legally
justified in demanding payment from Ted? If in the affirmative, what will be the
basis of payment, and, how much can he collect from Ted? (Arts.
1215, 1217 & 1277)

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HAPPY READING & LEARNING!

ENJOY YOUR DISCUSSIONS!!
17 May 2020 – OBLI Questions/Problems on Chapter 4, Section 4 (Arts. 1275-1277)
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Thank you, and keep safe always.

Atty. HRL 

FOOD FOR THOUGHT