LAW ON OBLIGATIONS AND CONTRACTS

A. Answer the following:

1. Ben promised to pay P100,000 to Ana on June 20, 2020. If today is June 21, 2020 and Ben has not effected payment yet, is Ben in delay? Yes or No? Explain.

2. Saludaga was a sophomore student of FEU when he was shot by Rosete, one of the security guards on duty at the school premises. Is FEU liable for damages in favor of Saludaga? Explain.

3. D borrowed a sum of money from C with a certain rate of interest. C now wants to increase the rate of interest without the consent of D. What principle in contracts prohibits C from doing so? Explain.

4. Dina bought a car from Jai and delivered a check in payment of the same. Has Dina paid the obligation? Explain.

B. Answer the following:

1. A, B and C executed a promissory note binding themselves to pay Php9,000 to X, Y and Z. The note is now due and demandable.

a. Can the creditors proceed against A alone for the payment of the entire debt?Explain.

b. How much can Y collect from C? No need to explain.

c. How much can Z collect from B? No need to explain.

2. A, B and C borrowed P3M from D, E and F evidenced by a promissory note worded as follows to wit: "I promised to pay D, E and F P3M. (Sgd) A, B and C." How much can D collect from A? Explain.

C. In which of the following obligations is specific performance not available? Choose one and explain.

a. Obligation to repair the roof of the house of a client

b. Obligation to give support

c. Obligation to give a specific thing

d. Obligation to give generic thing

D. D is obliged to give C a specific ring. The parties agreed that D may give a specific necklace as substitute. Which of the following statements is true? Choose one and explain.

a. If the ring is lost through a fortuitous event before substitution, the obligation is extinguished.

b. If the necklace is lost through a fortuitous event before substitution, the obligation is extinguished.

c. If the necklace is lost through the debtor's fault before the substitution, the debtor shall pay damages.

d. If the ring is lost through the debtor's fault after the substitution, the debtor shall pay damages.

E. Upon the proposal of a third person, a new debtor substituted the original debtor without the latter's consent. The creditor accepted the substitution. Later, however, the new debtor became insolvent and defaulted in his obligation.

a. What is the effect of the new debtor's default upon the original debtor?

b. Was there Novation? Explain.