I.

ANSWER them following questions BRIEFLY

1 - 2 What are the kinds of fortuitous events? Discuss briefly.

1. Ordinary fortuitous events are those events which are common and which the contracting
parties could reasonably foresee like for example, rain.
2. Extraordinary fortuitous events are those events which are uncommon and which the
contracting parties could not have reasonably foreseen like for example an earthquake, fire,
war,19 pestilence, unusual flood.

3 - 6 What are the requisites of a fortuitous event?

3. The event must be independent of the human will or at least of the obligor’s will.
4. The event could not be foreseen (unforeseeable), or if it could be foreseen, must have been
impossible to avoid (unavoidable).
5. The event must be of such a character as to render it impossible for the obligor to comply with
his obligation in a normal manner.
6. The obligor must be free from any participation in, or the ag-gravation of the injury to the obligee.

7-9 What are the kinds of interest? Explain each briefly.

7. Simple interest. — when the rate of interest is stipulated by the parties.

8. Compound interest. — when the interest earned is upon interest due.
9. Legal interest. — when the rate of interest intended by the parties is presumed by law, as when
the loan mentions interest but does not specify the rate thereof. (Art. 2209.) The same rate is
allowed in judgments where there is no express contract between the parties.

10–12 What are the requisites for recovery of interest for a loan transaction of use of money?

10. The payment of interest must be expressly stipulated (Art.1956);

11. The agreement must be in writing; and
12. The interest must be lawful. (Art. 1957.)

II. Write True or False

13. FALSE The receipt of a later installment of a debt without reservation as to prior installments, shall
not raise the presumption that such installments have been paid.
14. TRUE The creditors, after having pursued the property in possession of the debtor to satisfy their
claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those
which are inherent in his person.
15. FALSE The creditors, after having pursued the property in possession of the debtor to satisfy their
claims may not impugn the acts which the debtor may have done to defraud them.
16. TRUE Responsibility arising from fraud is demandable in all obligations.
17 FALSE Waiver of an action for future fraud is enforceable.
18. TRUE Responsibility arising from negligence in the performance of every kind of obligation is
demandable.
19. TRUE Liability arising from negligence may be regulated by the courts, according to the
circumstances.
20. TRUE The fault or negligence of the obligor consists in the omission of that diligence which is
required by the nature of the obligation and corresponds with the circumstances of the persons, of the
time and of the place.