NAME : __Gian P.

Pamaran__ YR & SEC : _BSBM 1-F__

DATE : ___June 3, 2022_

OBLIGATIONS AND CONTRACTS

3rd Short Quiz

Explain or state briefly the rule or reason for your answer.

1. D borrowed P500,000.00 as character loan (no security) from a bank. Despite demands
for payments after the loan fell due, D did not pay the bank. D has savings deposit of
P400,000.00 with the bank. Has the bank the right to apply the deposit to the payment
of D’s debt?

A: The bank has the authority to seize the debtor's deposited funds in order to satisfy
his debt. So my answer is yes. As a general rule of the Art. 1287, a bank has a right of
set-off of the deposits in its hands for the payment of any indebtedness to it on the part
of a depositor. Similarly, a depositor has every right to set-off his money deposit with a
bank against the loans he had obtained from said bank.

2. D owes C P100,000.00 in payment for which C accepts a check from D. On the ground
that a check is not legal tender, C later insists that D pay him in cash. Is D justified in
rejecting this demand of C?

A: According to the Art. 1236, the creditor is not bound to accept payment or
performance by a third person who has no interest in the fulfillment of the obligation,
unless there is a stipulation to the contrary. C may exercise his right to pay in cash
rather than by cheque. C has a right, and the responsibility stems from the period. What
matters is that C sought payment because he wishes to retrieve his money from D.

3. X obliged himself to deliver to Y a specific carabao to Y on July 31. The carabao died on
July 25. Y has no proof that X was negligent. Is X liable to Y?

A: In this case, even though Y were unable to provide evidence that X was irresponsible,
it was assumed that it was X's fault because it was in his custody when the specific
carabao died, until he shows the contrary to Y's presumption. So my answer will be yes
and it will be supported by the Art. 1265, which is “when the debtor's possession is lost,
it is considered that the loss was his fault until he provides proof.”
4. 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?

A: According to Article 1293, novation which consists in substituting a new debtor in the
place of the original one, may be made even without the knowledge or against the will
of the latter, but not without the consent of the creditor. Yes, D will be relieved from his
obligation to C. C and T decided that T would be the one to settle D's debt in this case.
As a result, D's debtor obligations will be discharged.

5. A, B, & C are jointly liable to D in the amount of P150,000.00. Subsequently, D assigned

his credit to C in consideration for goods sold by C to D. Give the effect of assignment.

A: If D gives the credit for items sold to C, C's portion is extinguished as long as it
exceeds P5000. In other words, A and B would still owe D P10,000 and the amount of C
over the value of the products sold. The debts in a shared obligation are different and
separate from one another. This is according to Article 1277, confusion does not
discharge a joint obligation save in the case of the creditor or debtor's share. The
creditor who may have committed any of these acts, as well as the person who collects
the debt, shall be liable to the others for their portion of the obligation.

-Good luck-