Read and analyze each law discussion with sample case.

Write a concrete legal

opinion. Justifications must be according to cited articles of Philippine Law.
EXAMPLE: Effect of the Object in a Contract of Sale
A. The Law. Research and read the following: Article 1262, Article 1480 and
Article 1496 of The Civil Code of the Philippines B. Discussion of the law
1. If the thing is lost before perfection of the contract. The contract is considered
inexistent, therefore the loss is borne by the seller based on the principle of res
perit domino (it is the owner of the thing who bears the consequences of the
loss).
2. If the thing is lost at the time of the perfection of the contract. The contract
shall be considered without any effect. The legal effect is the same as the object is
lost before perfection of the contract of sale.
3. If the thing is lost after delivery. The buyer bears the risk of loss since delivery
transfers ownership, following in the principle of res perit domino.
4. If the thing is lost after perfection but after delivery. The seller bears the risk of
loss since there is no delivery yet, hence, no transfer of ownership to the buyer.
C. Application of the law
Case: On November 14, 2020, Bernice Dunca purchased from Toyota Motors an
Innova, which corresponds to Php35, 000 monthly installment payable for three
years. The car will be used as family service. For this purpose, Ms. Dunca executed
a promissory note and deed of chattel mortgage in favor of Toyota Motors.
Meanwhile, Toyota Motors entered into a contract of assignment of the
promissory note and chattel mortgage with Eastwest Bank. In this regard, the
parties agreed that Ms. Dunca would pay the amount of the promissory note to
Eastwest Bank, the latter being the assignee of Toyota Motors. To effectuate the
sale as well as the assignment of the promissory note and chattel mortgage, Ms.
Dunca was required to sign a notice of assignment, a deed of assignment, a sales
invoice, a registration certificate, an affidavit, and a disclosure statement. A down
payment worth Php 20,000 was made by Ms. Dunca although the Innova has not
yet been physically possessed by her. Under the facts given, who bears the risk of
loss? Is Ms. Dunca still entitled to recover the down payment in case the Innova
can no longer be physically possessed by her?
D. Legal Opinion: Based on the given facts, it is clearly stated that the seller
(Toyota Motors) bears the risk of loss following the principle of res perit domino.
The registration certificate, receipt and sales invoice were merely signed as part
of the processing and for the approval of the application to buy the subject motor
vehicle. The documents were not therefore an acknowledgment by Ms. Dunca of
the physical acquisition of the subject motor vehicle but merely a requirement of
Toyota Motors so that the said subject motor vehicle would be delivered to the
buyer. The registration certificate signed by Ms. Bernice Dunca does not
conclusively prove that constructive delivery was made nor that ownership has
been transferred. In all forms of delivery, it is necessary that the act of delivery,
whether constructive or actual, is insufficient. Toyota Motors should therefore
bear loss of the subject motor. Hence, Ms. Dunca may be entitled to recover the
down payment in case the Innova can no longer be delivered.
Quiz Part A
A. The Law. Research and read the following: Article 1458, Article 1490, Article
1409 and Article 1491 of The Civil Code of the Philippines
B. Discussion of the law
Characteristics of a Contract of Sale
1. Consensual – perfected by mere consent without further act
2. Bilateral – because both contracting parties are bound to fulfill obligations
reciprocally towards each other
3. Onerous - thing sold is conveyed in consideration of price and vice versa
4. Commutative - thing sold is considered the equivalent of the price paid and vice
versa
5. Nominate – it is given a designation in the Civil Code, namely “Sale”
6. Principal – does not depend for its existence and validity upon another contract
7. Transmissive of ownership - because the vendor transfers ownership of the
subject matter to the vendee
Requisites of a Contract of Sale
1. Consent is manifested as the meeting of the offer (which must be certain) and
the acceptance (which must be absolute) upon the things and the cause which are
to constitute the contract.
C. Application of the law
Case: On April 20, 2019, Mr. Vincenzo Cassano sold his hotel in favor of Spouses
Andrew and Katherine Tan. A deed of sale was executed but Spouses Tan named
Tony Tan (their unborn son) as the buyer in the contract of sale. Accordingly, Tony
Tan was named as the buyer in the deed of sale by virtue of Chinese custom
naming children as the heir of their parents’ properties. It was only June 20, 2020
that Tony Tan was born. Is the contract of sale valid?
D. Legal Opinion:
Quiz Part B
A. The Law. Research and read the following: Article 1544 of The Civil Code of the
Philippines
B. Discussion of the law
Double Sale
The above provision pertains to the same property which has been sold to
different buyers or vendees. In case an immovable property covered under the
Torrens Title is sold to different vendees, the one who is the first registrant in
good faith at the Registry of Deeds where the property is located shall be
preferred.
C. Application of the law
Case: Russel, Rex, Roy and Romeo, all surnamed Atienza (hereafter the Atienza’s
brothers), were the registered owners of Lot No. 1000-A situated in Candelaria,
Quezon under TCT No. T-8121 issued by the Quezon’s Register of Deeds in
September 1986. On 15th of August 1987, Russel Atienza sold a portion of his
share of Lot No. 1000-A to Ramon Ang by virtue of a Deed of Sale, to which his
brothers Rex, Roy and Romeo offered no objection as evidenced by their Joint
Affidavit dated 14th of August 1987. The deed of sale was not registered with the
Office of the Register of Deeds of Quezon. However, Ramon Ang declared the
property for taxation purposes in his name on March 1990. In a Deed of Sale
dated 15th of June 1995, Atienza brothers conveyed all their rights and interests
over Lot No. 1000-A (including the supposedly share of Russel Atienza sold to
Ramon Ang) to John Gokongwei, which the former confirmed on 28th of February
1997. The deed of sale in favor of Gokongwei was registered with the Office of the
Register of Deeds of Quezon on 2 nd of March 1997. Who has a better right with
respect to the share of Russel Atienza which was sold to different vendees,
namely: Ramon Ang and John Gokongwei?
D. Legal Opinion:
Quiz Part C
A. The Law. Research and read the following: Article 1933 and 1956 of The Civil
Code of the Philippines
B. Discussion of the law Law on Credit Transactions –Simple Loan or Mutuum
1. In a contract of loan, if a particular rate of interest has been expressly
stipulated by the parties, such stipulated interest shall be applied. If the exact rate
of interest is not mentioned, the legal rate shall be payable (which is 12% per
annum under Section 1 of the Usury Law).
2. It is only in contracts of loan, with or without security, that interest may be
stipulated and demanded.
3. The debtor in delay is also liable to pay legal interest by way of indemnity for
damages, which legal interest may be agreed upon, and in the absence of any
stipulation, the legal interest shall be 12% per annum.
4. In all cases, interest due shall earn legal interest from the time it is judicially
demanded although the obligation may be silent upon this point. By virtue of
Central Bank Circular No.416 dated July 29, 1974 and No. 905 dated December
10, 1982, the legal rate has been increased from 6% to 12% per annum.
C. Application of the law
Case: Under a written contract of loan, Mr. Danilo Sumido obliged himself to pay
Bank of the Philippine Islands the sum of Php10,000.00 at 18% interest per year.
In case Mr. Sumido incurs delay in payment, will he be obliged to pay interest?
D. Legal Opinion:
Quiz Part D
A. The Law. Research and read the following: Article 2088 of The Civil Code of the
Philippines
B. Discussion of the law
Law on Credit Transactions –Pactum Commissorium
Pactum Commissorium is defined as a stipulation giving power to the creditor to
automatically appropriate the thing given as security, if the principal obligation is
not fulfilled without any formality, such as foreclosure proceeding and public sale.
C. Application of the law
Case: Don Lauro borrowed Php1,500,000.00 from the Banco de Oro in order to
start his travel agency business. Don Lauro executed a chattel mortgage with his
BMW car valued at Php2.5 million as the security for the debt. It was expressly
stipulated in the contract that if Don Lauro cannot pay his debt when it matures,
“the debt of Php1.5million shall be considered as full payment of the BMW car
without further action.” In case Don Lauro was unable to pay the loan, can the
Banco de Oro appropriate the car based on the stipulation?
D. Legal Opinion: