Obligations and Contracts

PLMar
Finals
2 Sem; AY 2020-2021
nd

Instructions:

i. Read the questions carefully.

ii. Answer directly or straight to the point. Do not beat around the bush because this will only waste
time and effort.
iii. Write your Name following this format: (Surname, First Name) and then followed by your student
number and then section.
iv. Answer in complete sentences. Ensure your answers are sound, well- structured, and logical.
v. Once you are done answering, review the questions as well as your answers.
vi. Point deductions will be made for those who fail to follow these instructions.

Best of luck:

1. After coming from a big concert in Mall of Asia on January 1, 2020, Sarah Geronimo went home to
her simple apartment in Marikina. When she arrived home, she was surprised to see that Mateo gave
her a puppy as a congratulatory gift. She then named her pet dog, Tala. Since, Tala had no place to
sleep other than the floor, Sarah bound herself to construct a dog house for Tala, the deadline of
which would be on January 15, 2020. Jealous with such an agreement, Mateo showed a sad face to
Sarah. Sarah, having noticed the frown on Mateo’s face, bound herself to construct a tree house for
Mateo. Mateo accepted Sarah’s offer and they both agreed that the deadline will be on January 15,
2020.

On January 10, Sarah’s agent reminded her of the upcoming concert on January 15, 2020 in Tondo,
Manila. As a result, Sarah had to practice her stint and she was unable to start with the construction
of the 2 houses she owed to Tala and Mateo.

On January 16, 2020, no pet house was constructed for Tala. In addition to this, Mateo demanded
from Sarah the Tree House. Sarah responded that she had no obligation to construct the tree house
because no written contract was made between the 2 of them. Hence, there is no valid and binding
contract between them.

a) Who among the parties are the passive and active subjects? Why? (3 pts)
b) Is Sarah’s contention or argument against Mateo correct? State with reasons in not more
than 5 sentences. (2 pts)
c) Is there a breach of contract between Tala and Sarah G? State with reasons in not more
than 3 sentences. (2 pts)

2. Bong Gyu entered into an agreement with Stone Dela Rosa whereby Stone agreed to beat up Tita
Sotta and Robert Duforty for a 3-day’s supply of Jollibee. When Stone Dela Rosa was able to finish

1
 the job, he demanded from Bong his Jollibee. Bong refused to give Stone his Jollibee, which left
Stone crying. Is there a valid and subsisting contract between the 2? (3 pts)

3. On February 1, 2020, Amihan, Karl, Mac, and Irish entered into a contract where Amihan promised
to give her full and unrequited love to each and every one of them. She promised to give it on
February 14, 2020 at exactly 12pm. In addition to this, she also promised to give each one of them
a bottle of alcohol to drown the night away come February 14, 2020. The 3 accepted her offer.
However, on February 14, 2020, a storm passed by the country which flooded most, if not all, of the
roads in the metro. On February 15, 2020, the 3 demanded Amihan give them her love as well as
the bottle of alcohol. Amihan argued she does not have any obligation anymore because of a
fortuitous event.

a. Is there a valid contract between the parties? If yes, why? (2 pts)

b. Is Amihan correct in her argument? (2 pts)

4. Manny, a resident of an island struck by a storm, found a decaying body and buried the same
without intention for it to be a gratuitous act. Finding Leonora, aunt of the deceased, demanded
reimbursement for the cost of burial.

a. Is there an obligation to reimburse? Whether your answer is yes or no, state your reasons. (2
pts)
b. Can Manny demand reimbursement from Leonora? Whether your answer is yes or no, please
state your reasons. (2 pts)

5. Maximo was hired by KFC as a cashier. His schedule is from 8am-5pm, Monday-Friday. Maximo
has been going to work on time and has been performing his job diligently. One day, particularly on
Friday, Maximo did not report to work. This continued on from Friday up until Wednesday. KFC
then demanded Maximo to return to work. However, Maximo refused to do so. KFC was then
compelled to fire Maximo due to insubordination and Absenteeism.

a. Can KFC order and compel Maximo to return to work? (2 pts)

b. Is there a valid contract between the 2 parties considering it has not been done in writing? (2 pts)