Gileah Y.

Zuasola BSA 2
THE LAW ON OBLIGATIONS AND CONTRACTS

CHAPTER 2 NATURE AND EFFECT OF OBLIGATIONS

III PROBLEMS.
Explain or state briefly the rule or reason for your answers.
1. S (seller) sold to B (buyer) on July 5, a horse named Silver to be delivered on July 20.
However, on July 15, S sold again and delivered the horse to T. Who has a better right
to Silver?
- In this case, T has a better right, real right specifically, to Silver since the horse has
been delivered to T. Based on Article 1164, “no real right shall be acquired until it
has been delivered to him”. Delivery is material on the thing sold, therefore T has a
better right to Silver.
2. S sold to B a specific refrigerator which S agreed to deliver not later than July 31, S did
not deliver the refrigerator on said date. Is S guilty of legal delay?
- In this case, S is not guilty of legal delay but to ordinary delay as stated in Article
1169, “ Those obliged to deliver or to do something incur in delay from the time the
obligee judicially or extra-judicially demands from them the fulfillment of their
obligation”. It shall be considered a legal delay when the creditor demand the
debtor to comply his obligation from which the demand may be either judicial or
extra-judicial, but in the problem, it was not stated that B made a demand to S,
therefore the law presumes that B is giving S an extension of time to deliver the
refrigerator.
3. S promised to deliver to B a female horse named Suzie on July 10. Suzie gave birth to a
colt on July 5.
a. What are the obligations of S?
- In this case, as stated in Article 1163, “ Every person obliged to give something is
also obliged to take good care of it with proper diligence of a good father of a family,
unless the law or the stipulation of the parties requires another standard of care.” S
is obliged to preserve Suzie or take good care of it until such time of delivery since it
is a determinate thing that cannot be substituted with another. S is also obliged to
deliver Suzie as per the date of agreement.
b. Who has a right to the colt?
- In this case, S has the right to the colt since it was born on July 5, before the
obligation to deliver the horse on July 10 has arisen (Article 1164.) It is not stated in
the problem that B has paid the price of the horse.
c. Who is the lawful owner of Suzie in case it was sold and delivered by S to T on July
8?
- In this case, under Article 1164, “the ownership and other real rights are acquired by
delivery, the transfer of ownership of the thing sold does not effect in the absence of
delivery”, therefore T is the lawful owner of Suzie.

4. D (debtor) borrowed P20,000 from C (creditor) payable after one (1) year? Is D liable
to pay interest?
- In this case, D is not liable to pay interest for it is not stated in the problem that it
comes with a stipulation to pay interest. Under Article 1175, only “Usurious
transactions shall be governed by special laws” and in this problem, there was no
excess mentioned for the amount allowed by law for the loan or use of money
wherein there is no stipulation as to interest.
5. R (lessor) issued a receipt that E (lessee) has paid the rent for the months of March,
2008. Can R still collect from E the rents for January and February, 2008?
- In this case, under Article 1176, par. 2 which states that, “ 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”, R cannot collect from E the
rents for January and February for it is presumed that it has already been paid,
unless stated in the problem that the receipt has reservation as to prior installments.