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ABC [construction rm} entered into a Contract with Francis for the construction of his house for a total contract price of P5 million. The contract

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ABC [construction rm} entered into a \"Contract" with Francis for the construction of his house for a total contract price of P5 million. The contract stated that the construction will be by ve [Si stages as follows: Stage 1 worth Fl million: Stage 2 worth Fl million: Stage 3 worth Fl million: Stage 4 worth Fl million: and Stage 5 worth Fl million; F999??? It was also agreed that ABC shall advance the amount needed for the constmction and shall only continue to the next \"construction stage" upon reimbursement of Francis. ABC already finished Stage 2 but Francis only paid Fl million leaving a balance of Pi million. As a result. ABC filed a case forspecific performance against Francis. During trial. ABC and Francis entered into a Compromise Agreement with the following terms for APPROVAL by the Court: a. Francis shall pay ABC the balance of Pi million: b. ABC shall post a performance band of 20%: and c. Francis shall make an escrow amount in favor of ABC. QUESTIONS: [it It you were the judge. where will you base the EDS? performance bond? On the whole unfinished project or only the next stage of the work to be done. and how much? Why? [support your answer with an applicable article} [if] points} [2! It you were the judge. how much will be the escrow amount? Why? [support your answer with an applicable articlej [l0 points]

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