FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

Business Laws and Regulations II

1st Sem | AY 2021 – 2022

Atty. Aldren D. Abrigo, CPA

LawSLS Recitation – PRELIMS Activity Assessments 03 September 2021

INSTRUCTIONS:
(a) Answer each question with reason. A mere “YES” or “NO” answer, as applicable, will not be given
any credit.
(b) Make your answer concise, brief and direct to the point.
(c) Your answers may be typewritten or handwritten, and must be legible.
(d) Do not forget to indicate/write your Name (Family Name first) and Section.
(e) For Handwritten essay, you can use a scanner to create a PDF file of your completed assignment.
(f) For Typewritten essay, make sure that it is in PDF file format.
(g) Use separate Answer Sheet for EACH MODULE Activity.
(h) Email the Answer Sheet (filename properly labeled per Module Activity) at Lawsalesfeu2021@gmail.com
(i) Use SUBJECT of the e-mail as follows:
Module No. __ | Your Section FAMILY NAME, First Name
(j) DEADLINE:
Module 2 – 07 September 2021 (Tuesday) until 11:59 PM
Module 3 – 09 September 2021 (Thursday) until 11:59 PM
Module 4 – 11 September 2021 (Saturday) until 11:59 PM
Module 5 – 18 September 2021 (Saturday) until 11:59 PM

MODULE 2:

(1) Madame Covida offered her talking robot for sale in the class. She said that whoever is interested
to buy it for P100,000 may simply leave a note and a down payment worth P10,000 in her bag.
Ngovid showed her interest by doing exactly as per Madame Covida’s instruction. After an hour,
Kwarentina approached Madame Covida personally and asked the latter to sell her talking robot
with her. When Madame Covida sold it to Kwarentina, Ngovid complained and insisted her right
over the talking robot of Madame Covida. Does Ngovid have the right to demand?

(2) Bu offered to sell his laptop to Kuh for P50,000. Kuh accepted the offer as signified by a small
piece of paper indicating her acceptance and aa reminder from Bu of their friendship so as the
latter to give her discount. Is there a perfected contract of sale?

(3) Babsy gave Papsie a receipt which states:

RECEIPT

“Received from Papsie as down payment for my Ford Everest with Plate No. ABZ-11234…… 1,500,000

Balance payable: 12/31/2021……………………………. 1,000,000

August 31, 2021.

(Sgd) Babsy”

Does this receipt evidence a contract to sell? Why?

(4) Bebong wrote on his journal, “I, Bebong, thereby bound myself to pay Bebang P500,000 for the
Mazda car with Plate No. ABC-1234.” Is the journal entry sufficient memorandum to comply with
the Statute of Frauds?
 (5) Cedie offered to sell his dragon balls to Judie. Judie accepted the offer. However, Cedie died. So
Judie communicated her acceptance to Cedie’s son, Goku. Is there a perfected contract of sale?

MODULE 3:

(1) Ayong mortgaged a diamond ring to Menggay as a security for a loan which was to be paid in
two (2 years) thereafter. Since Ayong failed to pay Menggay, she then foreclosed the mortgaged
property. However, it turned out that the proceeds of the sale were insufficient, thus, Menggay
filed an action for specific performance. Ayong contends that this is a violation of the Recto Law
since the foreclosure of the chattel bars subsequent recovery. Is this correct?

(2) Spouses Payongayong entered into a contract to sell with Pinocchio over a parcel of industrial
land in Northern City of Roxas, Isabela for a price of P3.5M. The spouses would give a down
payment of P500,000 upon the signing of the contract, while the balance would be paid for the
next three (3) consecutive months in the amount of P1M per month. The spouses paid the first 2
installments but not the last installment. After one year, the spouses offered to pay the unpaid
balance which Pinocchio refused to accept. The spouses filed a complaint for specific performance
against Pinocchio invoking the application of the Maceda Law. Is the Maceda Law applicable in
the case at bar?

(3) Ace sold a residential house and lot at an installment price of P6M payable in 50 years at P10,000
per month to Case. After payment of total installments amounting to P720,000, Case defaulted on
the next installment. What is the grace period earned by Case to pay the defaulted installments
without additional interest? Explain.

(4) Drake sold a residential house and lot at an installment price of P6M payable in 50 years at P10,000
per month to Jake. After payment of total installments amounting to P3M, Jake defaulted on the
next installment. After following the necessary procedures required by law, the contract of sale
is cancelled. How much cash surrender value is Jake entitled from Drake? Explain.

(5) Covido, a registered owner of a parcel of land in Santiago City, sold the property to Quarentino
under a deed of sale which reads as follows:

“That for and in consideration of the sum of P950,000, value to be paid and delivered to me, and
receipt of which shall be acknowledged by me to the full satisfaction of Quarentino, referred to
as a vendee, I hereby sell, transfer, cede, convey, and assign, as by presents, I do have sold,
transferred, ceded, conveyed, and assigned a parcel of land covered by TCT No. 14344 in favor
of the Vendee.”

After delivery of the initial payment of P500,000, Quarentino immediately took possession of the
property. Five months later, Quarentino failed to pay the remaining balance of the purchase price.
Covido filed an action for recovery of the possession of the property. Covido alleged that the
agreement was one to sell, which was not consummated as the full contract price was not paid.
Is the contention of Covido tenable?

(6) Sarah sold to Babsy certain goods. At the time of sale, Sarah is not the owner of the goods. May
there be a valid sale to Babsy?

MODULE 4:

(1) Pido, a minor, owns a parcel of land worth P1M. Pida, his guardian, bought such land for P10M.
Is there a valid contract of sale?

(2) Wakando and Wakanda are husband and wife. After selling his property to Wakanda, Wakando
borrowed a big amount of money from Gananda. It appears that Wakando is now bankrupt. Has

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 Gananda the right to question the sale of Wakando’s property to Wakanda in order to have saod
property answer for Wakando’s indebtedness to her?

(3) Can foreign nationals buy and own real properties in the Philippines?

(4) Bibo sold his machinery to Kiko. Unknown to both of them, the machinery has been totally
destroyed before they agreed on the sale. Is there a valid contract of sale? Who bears the loss of
the thing sold?

(5) El Cid bought the red Ferrari of Cardo which the latter should deliver to the former on 23 January
2021. On 24 January 2021, the Ferrari was struck by lightning while it was being driven to be
delivered to El Cid. El Cid then sued Cardo for damages because the latter failed to deliver the
Ferrari. Cardo replied in his Answer that his obligation had been extinguished by fortuitous event.
Is Cardo liable for damages?

MODULE 5:

(1) On 1 July 2021, Harry entered into a contract of sale with Potter to sell the former’s gold watch
for P100,000 to be delivered on 1 August 2021. Potter already paid the purchase price on the
perfection of the contract. On 1 August 2021, while Harry was walking along Recto Avenue to
deliver the gold watch to Potter, the latter suddenly appeared and forcibly took the gold watch.
Can Potter be considered the owner of the said gold watch?

(2) Beybi, a minor, sold her car to Mikmik, a person of legal age. Mikmik, in turn, sold the said car to
Maymay who acted in good faith. Does Maymay acquire a valid title to the car after its delivery?

(3) Tina sold to Kasan a talking calculator. The talking calculator, however, was allowed to remain
in the hands of Tina. Subsequently, Tina sold the same talking calculator to Ambo who bought it
in good faith and took possession thereof. Who between Kasan and Ambo is the owner of the
property sold?

(4) Ana sold to Bana a house. After the sale, Bana discovered that the main posts of the house and
other interior parts had been destroyed by “anay” and “bukbok” and as a result, the house was in
danger of collapsing. The defects of the house were hidden and concealed and were unknown to
Bana until a closer inspection was made by her.

Under the circumstances, (a) is Ana liable for the defects even though she was not aware thereof?;
and (b) what are the alternative remedies of Bana?

(5) Fetmalu sold to Sakalam a parcel of land for the lump sum of P600,000. The contract states that
the area is 1,000 square meters. Subsequently, it was ascertained that the area included within the
boundaries is really 1,500 square meters. Is Fetmalu bound to deliver all the 1,500 square meters
which are included within said boundaries without increase in price? If your answer is yes and
Fetmalu does not deliver also the extra 500 square meters, what are the rights of Sakalam, if any?

-0ooo0-

“For I know the plans I have for you declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future.” –
Jeremiah 29:11

#nopressure #makemeproud

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