Answer the questions briefly and clearly after reading the passages.

1. Mario is engaged in a pharmaceutical business. One day, Mario unnecessarily bought from Dario a

truckload of supplies and medicines to be sold in his pharmacy so that he could post the cost in his

ledger as expense to reduce his tax liability. Is the contract of sale between Mario and Dario valid?

Why or why not?

2. Joanna entered into a loan contract with Marie over Marie's car where Joanna is the borrower and

Marie is the lender. It was stated in the contract that the ownership will be transferred to Joanna. The

title to the car was given to Joanna who registered the car in her name. Before the end date of the

contract, Joanna expressed her intention to buy the car. But Marie refused to agree to Joanna's intent.

Was Marie correct in refusing to agree to Joanna's intent? Why or why not?

3. Scott requested Jenny to work with the Bureau of Internal Revenue (BIR) in further reducing the tax

liability of the company believing her to be an accountant. Meanwhile, Jenny took advantage of Scott's

mistaken belief and trust and convinced him that he would reduce the company's tax liability by 50%

in exchange for a substantive number of shares in the company. Is Scott's donation of a substantive

number of the company's shares to Jenny valid? Why or why not?

4. Nio is very much interested in buying Jasper's business, but Jasper is not open to the idea of selling

his business. Since Nio is used to getting what he wants, he threatened Jasper that he has

connections with the Department of Trade and Industry (DTI) and he can have Jasper's business

closed. Out of fear, Jasper sold his business to Nio. What should Jasper do to get back the business?

What should be the basis of his remedy?