Professional Documents
Culture Documents
03 ACTIVITY 1
Case Analysis. (20 points: 4 items x 5 points)
Answer the questions and submit thru Dropbox.
1. Juan and Pedro borrowed Php150,000 from Ana, Lorna, and Fe in solidum. Eventually, Ana validly
condones or disregards the debt in the amount of Php100,000 as she feels indebted to Juan and Pedro
for their parents’ benevolence when both of her parents died in an accident since Juan’s and Pedro’s
parents provided moral and financial support to Ana after the tragedy.
b. What is the effect of Ana’s act of condoning the debt in the amount of Php100,000 with
respect to Juan’s and Pedro’s debt? With respect to Lorna’s and Fe’s credit?
In this case, Ana is liable for the corresponding shares of its co-creditors because if Ana
ignores the P100,000 debts of Juan and Pedro, means that the only remaining amount is only P50,000 that
Juan and Pedro need to pay.
2. William and Harry obliged themselves to deliver to Elizabeth a bullet-proof car on her birthday. William
and Harry agreed in front of Elizabeth to contribute the amount that will be used to buy the car.
However, Harry failed to give his contribution to the purchase price of the car, hence, the car was not
delivered to Elizabeth on her birthday.