1. Rolando orally sold his farmland to Armando for P1,000,000.00.

After spending all the money,

Rolando filed an ejectment suit (law suit) against Armando to recover the land. Will the ejectment
suit prosper? Why or why not?

It will only prosper if Rolando can return the P1,000,000.00 that he already spends, He can file for an
annulment of contract in which both parties need to return the subject matter of the contract.
When one of the parties does not return the thing he is bound to return, the other party cannot be
compelled to return that which he is bound to return.

2. Andy loaned P20,000.00 from Benny. Terrence orally promised to assume the obligation of Andy.
What is the status of the contract?

The contract between Andy and Benny is a valid and enforceable contract. Terrence obliging himself
to pay the obligation of Andy is unenforceable contract because there is no existing written evidence
of him acknowledging to pay the obligation of Andy.

3. Joey and James entered into a contract of sale during the New Year’s Eve party at their village.
Joey, a minor, bought the shoe collection of James who was under the influence of alcohol worth
P30,000. Is the contract valid? Why or why not?

The contract is valid, but it is a voidable contract due to the capacity to act of Joey, capacity to act
refers to one’s power to do acts with legal effects. Joey being a minor needs consent from his parent
or guardian to form a contract.

4. In the same case in #3, what is the effect of ratification:

a. By either party?
It is valid contract but voidable because only one party acknowledges and gives consent to the
contract.

b. By both, after becoming capacitated?

The contract ratification cleanses the contract from all its defects from the moment it was
constituted. Therefore, when ratified, it would be as if the contract is valid from the start.