Quiz 1

Obligations and Contracts

1. The law speaks of 5 ways in which one can breach an obligation. What are the ways to breach an
obligation? Explain each. (15 points)

2. Differentiate Incidental Fraud and Causal Fraud. (5 points)

3. Differentiate Negligence and Fraud. (5points)

4. A sold to B a 2016 Toyota Fortuner which A agreed to deliver not later than December 10, A did
not deliver the vehicle on the said date. Is S guilty of delay? (5 points)

5. What are the different kinds of delay? Explain and cite an example for each. (10 points)

6. X and Y entered into an obligation not to cut down the 20-year-old acacia tree in front of their
land within 5 years. After 5 years, X filed a case for damages on the grounds of breach of
obligation. According to him, Y was in default. Will the case of X prosper? (5 points)

7. A entered into a contract of loan with B wherein B lent A 15,000. Under the contract, A will pay
B on or before November 5, 2023, since the money will be used by B for his credit card bill due
on November 5, 2023. On November 6, 2023, B filed a case for damages against A on the
grounds of breach of contract because of default. In his defense, A exclaimed that he could not
be held in default because no demand was given to him. Is the contention of A correct? (5
points)

8. What is diligence and the 3 different kinds of diligence required to be observed in the
performance of an obligation under Article 1173? (10 points)

9. Explain the concept of fortuitous event and its requisites. (5 points)

10. What is the liability of a debtor for damage caused to the creditor resulting from his failure to
make good on his obligation due to a fortuitous event? (5 points)

11. X obliged himself to deliver to Y a 2016 yellow Seiko watch. On his way to deliver the watch, the
car that X was using was involved in a fire in a parking lot, resulting in the complete destruction
of the watch. X informed Y that he can no longer perform his obligation and could not be held
responsible for it because the damage was due to a fortuitous event. Is the contention of X
correct? (5 points)