Homework 1
List of Course Problems
Dela Rea, Kimmi F.
School of Electronics, Electrical and Computer Engineering
ECE70 / B11
Kdelarea32@yahoo.com
I. OBLIGATIONS
CHAPTER 1- General
Provisions
Problem 1
X saw at about one (1:00 p.m.) in the afternoon a
child alone in a shopping mall. The child who strayed from Y,
his mother, was in tears and appeared very hungry. Out of
pity, X took him to a restaurant to eat for which he spent P150.
Y did not give her consent to the good deed of X.
Furthermore, they were on their way home before the child got
lost. Is X entitled to be reimbursed by Y for the amount of
P150?
Problem 4
D (debtor) borrowed P10,000 from C (creditor). On
the due date of loan, D could not pay C because he lost to a
robber the P10,000 intended for C. In addition, he suffered
financial reverses, and he was short of cash even for his
current family’s needs. Is D legally justified to refuse to pay
C?
CHAPTER 2- Nature and Effect of Obligations
Problem 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 better right to
Silver?
Problem 4
D (debtor) borrowed P20,000 from C (creditor)
payable after one (1) year? Is D liable to pay interest?
CHAPTER 3- Different Kinds of Obligations
Problem 1
D (debtor) borrowed P20,000 from C (creditor)
payable on or before August 30. Before the arrival of the due
date, C agreed to the promise of B to pay C if B wants. Can C
insist that B pay not later than August 30?
Problem 4
S sold a parcel of land to B for P240,000 payable in
installments of P20,000 a year. The land was delivered to B
who obtained ownership thereof. After B had paid P200,000,
he could no longer continuing paying in view of financial
reverses but he was willing to pay the balance of P40,000 if
given more time. Thereupon, S sued for rescission under
Article 1191. If you were the judge, would you grant
rescission?
CHAPTER 3, Section 2 – Obligations with a Period
Problem 2
D binds himself to give P10,000 to C upon the death
of the father of D. Is the obligation of D conditional or one
with a period.
Problem 3
D obtained a loan from C in the amount of P50,000,
payable on August 10. As security for his debt, D mortgaged
his car in favor of C. The car, however, was substantially
damaged without the fault of D. What rights, if any, does C
have under the law? May C demand payment from D even
before August 10?
CHAPTER 3, Section 3- Alternative Obligations
Problem 1
D (debtor) borrowed P10,000 from C (creditor). It
was agreed that D could pay P10,000 or deliver his piano on
August 22. On August 20, D informed C that the former
would deliver his piano. Can D still change his period
considering that he was given the right of choice?
Problem 2
Under a contract, X (obligor) promised to deliver to
Y (obligee) item one, or item two, or item three Y was given
the right of choice. What is the liability of X in case, through
his fault:
(a) Item two is lost or destroyed;
(b) All the item are lost or destroyed?
CHAPTER 3, Section 4 – Joint and Solidary Obligations

Problem 3
A owes B and C, solidary creditors, the sum of
P20,000:
(a) Can C condone the debt without the consent of B?
(b) Can C assign his rights without the consent of B?
CHAPTER 3, Section 5 – Divisible and Indivisible
Obligations
Problem 1
A and B bind themselves to pay C their loan of
P10,000 on a certain date. Is the obligation divisible or
indivisible?
CHAPTER 3, Section 6 – Obligations with a Penal Clause
Problem 1
X promises to deliver to Y a specific horse. Their
contract contains a penal clause that in case of non-fulfillment,
X shall pay a penalty of P10,000. X wants to just pay that
penalty instead of delivering the horse. Has Y the right to
refuse to accept the penalty in lieu of the horse?
Problem 2
In the same problem, X was able to show that Y did
not suffer any damage by X’s violation of the obligation. Can
Y still enforce the penalty?
CHAPTER 4 – Extinguishment of Obligations
Problem 1
D (debtor) owes C (creditor) P10,000 with G as
guarantor. On the due date of the obligation, T, a third person,
offered to pay the obligation of D. Can C legally refuse to
accept the payment? How about an offer of payment from G?
Problem 2
M (maker) issued a promissory note for P10,000 in
favor of P (payee) who lost the note which was found by T
who demands payment from M. M did not know that the note
was lost by P. Is M justified in paying T?
CHAPTER 4, Section 2 – Loss of the Thing
Due Problem 2
X obliges himself to deliver a specific thing to Y on a
certain date. The thing was lost by X without his fault and
before he has incurred in delay. Does it mean that X is already
exempt from liability?
Problem 3
Suppose in the preceding problem, the thing was lost
through the fault of Z, a third person. State the effect of the
loss as far as X, Y, and Z are concerned.
CHAPTER 4, Section 4 – Confusion or Merger of Rights
Problem 1
A, B, and C are joinly liable to D in the amount of
P15,000. Subsequently, D assigned his credit to C in
consideration for goods sold by C to D. Give the effect of the
assignment.
Problem 2
Assuming the obligation of A, B, and C is solidary,
distinguish the effect of the assignment from the first problem.
CHAPTER 4, Section 5 – Compensation
Problem 1
D borrowed P50,000 as character loan (no security)
from a bank. Despite demands for payment after the loan fell
due, D did not pay the bank. D has a savings deposit of
P40,000 with the bank. Has the bank the right to apply the
deposit to the payment of D’s debt?
Problem 2
D owes C P10,000 payable on November 20. C owes
D P10,000 payable on October 20. Can compensation also
take place although the debts are not payable on the same
date?
CHAPTER 4, Section 6 – Novation
Problem 1
T (third person) tells C (creditor) that T will pay the
debt of D (debtor). C agrees. Is D released from his obligation
to C?
Problem 2
Suppose in the above problem, D proposed to C that
T would substitute D as the new debtor to which C agreed. Is
D still liable to C in case of insolvency of T?
II. CONTRACTS
CHAPTER 1 – General Provisions
Problem 1
A and B entered into a contract not specifically
provided in the Civil Code. Is the contract valid and binding.
Problem 2
S (seller) and B (buyer) entered into a contract of
sale. It was agreed that the price shall be determined by T, a
third person. Can S or B refuse to be bound by T’s
determination of the price if he does not agree with the amount
thereof?
CHAPTER 2 – Essential Requisites of Contracts
Problem 1
 In a contract containing an option period, when is the
offerer not allowed to withdraw his offer even before
acceptance by the offeree? When is the offerer allowed to
withdraw his offer even after acceptance?
Problem 5
Suppose in the same problem, what S sold to B,
hardware owner, are 500 bags of cement. S had every reason
to believe that the price of cement would go down. After two
weeks, it did go down. Has B the right to have the sale
annulled?
CHAPTER 2, Section 2 – Object of
Contracts Problem 1
S sold to B for P100,000 a parcel of land belonging
to S located in his hometown without specifying its exact
location and area. Is the sale valid?
Problem 2
S has several pigs. Under a contract of sale, S binds
himself to deliver a pig to a B for P30,000 if the pig has a
weight of at least 30 kilos. State the binding effect of the sale.
CHAPTER 2, Section 3 – Cause of
Contracts Problem 2
S sold to B a specific parcel of land for P500,000. B
failed to pay. Has C the right to have the sale declared void by
the court on the ground of absence of cause for non-payment
of the price?
Problem 3
X grave P10,000 to Y who signed a receipt stating:
“This is to acknowledge payment by X in the amount of
P12,000.” X later complains that he received nothing from Y
for the P10,000. Is Y bound to return the P10,000?
CHAPTER 3, Form of Contracts
Problem 1
S (seller) and B (buyer) entered into a contract of sale
of a parcel of land. The sale is embodied only in a private
document and not in a public instrument because it was not
acknowledge before a notary public as required by law. Is the
sale valid?
Problem 2
In the same example, what rights, if any, are acquired
by the contracting parties?
CHAPTER 4 – Reformation of Instruments
Problem 1
S sold his horse “X” to B under a written contract of
sale. What B thought S was selling him is horse “Y”. Can S
ask for the reformation of the contract against the objection of
B who is agreeable to the sale of horse “X”?
Problem 2
Suppose in the same example, S was intending to sell
his horse “Y”. Give the three (3) cases when he can ask for the
reformation of the contract.
CHAPTER 5 – Interpretation of Contracts
Problem 1
S sold to B his condominium unit “including all its
contents.” In the unit, there is an antique chair belonging to X
which X agreed to sell to S. Is the chair to be included in the
sale of the unit?
Problem 3
Suppose in the same problem, the professional fee
was agreed upon, but it is not clear from the written contract
prepared by X upon the request of Y whether it should be the
fixed amount of P200,000 or 6% of the cost of construction.
How much is Y liable to pay?
CHAPTER 6 - Rescissible Contracts
Problem 1
D owes C P100,000. Since D fails to pay, C
expressed its willingness to accept the car of D, with the same
value, more or less, in payment of his debt. D, in bad faith,
sold the car to X. Has C the right to ask for the rescission of
the sale?
CHAPTER 7 – Voidable Contracts
Problem 2
In the same problem, suppose S, upon reaching the
age of majority, decided to ratify or respect the contract. Has B
the right to refuse the ratification and demand mutual
restitution of the property and the price?
CHAPTER 8 – Unenforceable Contracts
Problem 1
I, an insane person, entered into a contract with M, a
minor. What is the effect of ratification
(a) By either; and
(b) By both, after becoming incapacitated?
Problem 3
S orally agreed to sell his piano for P7,000 to B who
made a partial payment of P1,000. Later, S denied there was
such a sale. Can B enforce the sale considering that the
contract was oral and the price was more than P500?
CHAPTER 9 – Void or Inexistent Contracts
Problem 2
 In consideration of P10,000 given bu X to Y, the
latter agreed to burn the house of Z. Later, X told refused. Is
X entitled to recover from Y?
Problem 2
M, a minor, bought a bicycle for P2,000 from N, who
is not a minor. Under the law, the contract is voidable because
M is incapacitated to give consent because of his minority.
Give the situation by reason of which M cannot recover the
P2,000 from N.

XYZ CASE
Assume you are Z, an ECE engineer. What will you
do, and why? Explain from both deontological and
teleological perspectives.

BAYANI CASE
Manuel Rizal and Bonifacio are both ECE engineers.
Rizal from MIT and Bonifacio from the other MIT. Bonifacio
also has an MBA from Ateneo. State the core ethics problem
then solve.