11:15 P Vo)) 4G+ LTE1 4 .Ill . 3 X .. . I1. Discussion: Ram obtained a loan in the amount P10M with interest from Mar. As collateral, Ram offered his LB Bank bonds worth P15M for the payment of the principal loan. The said transaction was denominated as contract of sale. Ram defaulted his payment thus, Mar consolidated the LB bonds of Ram in his favor. Ram filed case for reformation of instrument before the Regional Trial Court of Quezon City. Resolve the following: 1. Decide whether or not the instrument denominated as Contract of Sale be reformed? 2. Mar claimed that the contract of sale executed by Ram is valid because all the essential requisites of contract are present, therefore not subject to reformation. Do you agree? On January 14, 2013, Alden bought on installment basis from Diamond Star Motors Corporation a 2012 Mitsubishi Adventure SS MT and for value received, Alex, the owner of 20 parcels of land located in Antipolo, authorized Axle to sell his property to NHA. The NHA through a resolution agreed to buy the said 20 parcels of land for a price of P20M. Alden also signed, executed and delivered to Diamond Star Motors a Promissory Note with Chattel Mortgage DTI Bank. Based on the promissory note, Alden was jointly and severally obligated himself to pay Diamond Star Motors the sum of P836,032.00, payable in 36 monthly installments in accordance with the schedule of payment indicated therein. and which obligation is secured by a chattel mortgage on the aforementioned motor vehicle. On the day of the execution of the document, Diamond Star Motors, with notice to Alden, executed a Deed of Assignment, thereby assigning to DTI bank all its rights, title and interest to the Promissory Note with Chattel Mortgage. On December 16, 2013, a Complaint was filed by DTI Bank against Alden for Replevin and damages before the Regional Trial Court of Manila (RTC), praying that Alden be ordered to pay the unpaid portion of the vehicle's purchase price, accrued interest thereon at the rate of 36% per annum as of September 26, 2013, 25% attorney's fees and 25% liquidated damages, as stipulated on the Promissory Note with Chattel Mortgage. DTI Bank likewise prayed for the issuance of a writ of replevin but it failed to file a bond therefor, hence, the writ was never issued. DTI Bank alleged that Alden failed to pay three (3) consecutive installments and despite written demand sent to him through registered mail, Alden failed to comply with said demand to pay or to surrender possession of the vehicle to DTI Bank. Resolve the following: a) In his defense, Alden alleged that he was forced to sign a document entitled promissory note and chattel mortgage in favor of DTI Bank in order to release his vehicle from the Diamond Star Motors. And that he had no chance to read the contents and provisions of the contract. Do you agree with Alden? b) Alden argued that such stipulation found in the promissory note and chattel mortgage should be deemed invalid as the document they executed was a contract of adhesion. Do you agree? III O