Question
Law on Obligations and Contacts. In 1998, Rudey Duduts borrowed $500 from Bongga Go, when the Phil P - US$ exchange rate was P56 -
Law on Obligations and Contacts.
In 1998, Rudey Duduts borrowed $500 from Bongga Go, when the Phil P - US$ exchange rate was P56 - US$1. Later, Rudey Duduts tendered to Bongga Go a cashier's check in the amount of P28,000 in payment of his US$ 500 debt, based on the Phil P - US$ exchange rate at that time. Bongga Go accepted the check, but forgot to deposit it. Because it had already become stale, the bank refused to accept the check. Bongga Go now wants Rudey Duduts to pay him in cash, claiming that the previous payment was not in legal tender and that there has been extraordinary deflation since 1998; and therefore, Rudey Duduts should pay him the value of the debt at the time it was incurred. Rudey Duduts refused to pay him again, claiming that Bongga Go is estopped from raising the issue of legal tender, having accepted the check, and that it was Bongga Go's negligence in not depositing the check on time which resulted to the check to become stale. a. Is Bongga Go correct in raising the issue that the cashier's check is not legal tender? Explain b. Is Rudey Duduts justified in refusing to pay Bongga Go again? Explain c. Is Rudey Duduts correct in compelling Bongga Go to receive US$500 instead? Explain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started