A.

1. A, B and C oblige themselves jointly to deliver to deliver to D a particular horse on a certain date. The agreement between A, B and C which was made known to D is that they will contribute the amount in buying the horse. The horse was not delivered on the due date because of the failure of B to give his share of the purchase price. State the rights and obligations of the parties.

2. X promises to deliver to Y a specific horse. Their contract contains a penal clause that in case of non-fulfillment, X shall pay a penalty of P10,000. X just wants to pay the penalty instead of delivering the horse. Has Y the right to refuse to accept the penalty in lieu of the horse?

B.

Explain the concept of the following ways of extinguishing an obligation and provide an example for each.

1. Payment or performance

2. Loss of the thing due

3. Condonation or remission of debt

4. Confusion or merger of the rights of creditor and debtor

5. Compensation

6. Novation

7. Annulment

8. Rescission

9. Fulfillment of a resolutory condition

10. Prescription