Chapter 2 (Problems Section) page 79 to 80

1. T has a better right to the horse named Silver than B. According to Article 1164, “The
creditor has a right to the fruits of the thing from the time the obligation to deliver it
arises. However, he shall acquire no real right over it until the same has been delivered to
him”. S is obliged to deliver the particular horse to B on July 20. But on July 15, S sold
and delivered the same horse to T, a third person who acted in good faith. Therefore, T
acquires ownership over the horse and he shall be entitled to it as against B. S shall be
liable to B for damages in accordance with Article 1170.
2. S is guilty of delay or default. According to Article 1169, “Those obliged to deliver or to
do something incur in delay from the time the obligee judicially or extrajudicially
demands from them the fulfillment of their obligation”. The delay on the part of S in
fulfillment of the obligation. There is an agreement and demand made upon S by B on or
not later than July 31 but S fails to deliver the refrigerator on the said date. Thus, S is
considered in default or delay from the agreed date due to the failure of compliance with
such demand.
3. (a) In accordance with Article 1163 (Duties of debtor in obligation to give a determinate
thing), The obligations of S are the following:
- Preserve the thing, which means S has the incidental duty to take care of the horse
named Suzie
- Deliver the fruits of the thing, which means the creditor has a right to the fruits of the
thing from the time the obligation to deliver the thing arises. However, such creditor has
no real right over the thing unless such it has been delivered to him.
- Deliver the accessions and accessories, which means to deliver the horse’s accessions
and accessories even though not mentioned. Accessions are everything which is produced
thereby, or which is incorporated or attached thereto, either naturally or artificially and
accessories are joined to or included in the horse for the latter's better use. 
- Deliver the thing itself, which means the delivery is placing the horse named Suzie in
the possession or control of B by the S either actually or constructively.
- Answer for damages in case of non-fulfilment or breach, which means if S fails to
deliver Suzie to B and if S is guilty of negligence or delay of his obligation, therefore S
will be liable for damages.
(b) S has the right to the colt. The colt was born before the obligation to deliver the horse
has arisen in accordance with Article 1164. Upon the fulfillment of the condition or the
arrival of the period, S does not have to give the colt.
(c) In case Suzie was sold and delivered by S to T on July 8 then T is the lawful owner of
Suzie. He has a real right to Suzie. Therefore, T acquires ownership over the horse and he
shall be entitled to it as against B. S shall be liable to B for damages in accordance with
Article 1170.
4. D is not liable to pay interest. In accordance with Article 1175 “usurious transactions
shall be governed by special laws”. The payment of the interest is invalid if there is no
agreement on the interest per year. There is no indication that D should pay interest to C
and of what amount. No agreement shown in the problem that D is liable to pay interest
for the amount owed. D is only liable to pay interest to C if they have expressly stipulated
 that a certain amount of interest may be recovered by C and if there is a written
agreement between the two about the interest.
5. Yes, R can still collect the rents for January and February, 2008 from E. According to
Article 1176, “the receipt of the principal by the creditor, without reservation with respect
to the interest, shall give rise to the presumption that said interest has been paid. The
receipt of a later installment of a debt without reservation as to prior installments, shall
likewise raise the presumption that such installments have been paid”. The receipts can
be the basis for collection. R issued a receipt to E for only the month of March, 2008. If
there is no proof that E has paid the rents for January and February, 2008 therefore, R can
still collect the rents.