LAW ON OBLIGATIONS AND CONTRACTS

Answer the following.

A. Gan Tion filed an ejectment case against Ong Wan Sieng but the latter won, hence, was awarded attorney's fees by the court in his favor amounting to 10,000. On a later date, Gan Tion is collecting unpaid rent from Ong Wan Sieng amounting to 100,000 but the latter is only paying 90,000, setting up compensation with regard to his award of attorney's fees amounting to 10,000.Was there compensation between Gan Tion and Ong Wan Sieng? Explain.

B. The following are void contracts, except: Choose only one and explain.

a. A contract whereby X promised to live as the common-law-wife of Y without the benefit of marriage in considering of P1,000,000.

b. An agreement whereby A is to render service as a servant to B without compensation as long as A has not paid him debt.

c. A stole the car of B, later they entered into a contract whereby would not prosecute A in consideration ofP100,000.

d. A stipulation in a contract of lease whereby the landlord can go to court to eject the tenant in case of failure of the latter pay the rent agreed upon.

C. A gets a loan of Php1M from B which becomes due to October 1, 2020 and mortgaged his house as security for the debt. On June 30, 2020, the mortgaged house completely destroyed by fire thru the fault of C. A week later, B demanded payment from A. Is B's demand valid? Explain.

D. S asked B this question: "Will you buy my red car with plate no. AAA1234 for P500,000?

a. If B responded: "Okay, yes, I will buy your car", is there a perfected contract? Explain.

b. If B responded: "Okay, yes, I will buy your car but for P400,000 only", is there a perfected contract? Explain.

c. Can S withdraw the offer by communicating to B that she changed her mind and decided to keep the car? Explain.

E. Determine the status of the following contract entered into, 2 points each, just determine, no need to explain:

Options:Perfectly Valid

Rescissible

Voidable

Unenforceable

Void

1. Contract of partnership executed in private instrument involving land and building.

2. A written contract for the transfer of piece of land at an amount of P900,000 with a fair market value of P1M. Delivery and payment have not yet been made.

3. The absentee, without authority, sold in writing the personal property of his representative at a price of P70,000 when its book value is P100,000.

4. The minor sold in writing his personal property to a capacitated person at a price of P74,000 when its book value is P100,000.

5. A donation of house and land by the debtor who has a pending civil action without reserving enough property for his obligations.

6. An oral contract of guaranty or surety.

7. A representative of an absentee orally sold a bike of the latter at a price of P40,000 when its book value is P60,000. The buyer has already paid the price.

8. A 5-year old child orally entered into a contract of employment as a model of a men's magazine without permission from DOLE.