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For questions asking you to solve a hypothetical problem, answer in a paragraph form using this format: First Sentence: Categorical Answer (Yes [No / It depends) Second Sentence: Legal Basis (Under the Civil Code xxx) Third Sentence: Analysis (In the case at bar xxx) Fourth Sentence: Conclusion (Therefore xxx) Eg. Mr. A is a minor who contracted a contract of sale with Mr. X, an insane and demented person. Mr. A, later on, demanded the performance of the obligations of Mr. X in the contract. Mr. X's ward refused the demand of Mr. A. Can Mr. A enforce the performance of the contract? Answer: No. Under the Civil Code, contracts entered into between two incapacitated persons is an unenforceable contracts. In the case at the bar, the contract is entered into between a minor and an insane and demented person. Therefore, both parties are incapacitated. Hence, the contract is unenforceable. Quiz on Contracts 1. Explain the principle of relativity of contracts. Are there any exceptions to the relativity principle? What are these, if any? 2. Mr. A and Mr. B entered into a contract whereby Mr. B, a dealer of alcoholic beverages, promises to deliver, for a certain consideration, 100 cases of beer to Mr.A's sarisari store in time for Town Fiesta. Mr. C, another sarisari store owner, upon knowing the contract thereafter convinces Mr. B to instead affect delivery on him rather than to Mr. A and paid twice the amount. Is Mr. C liable for contractual interference? 3. A contract says \"First contracting party hereby bounds himself to sell his house and lot to the second contracting party\". The second contracting party now claims the contract is void because of the absence of cause. Is the second contracting party correct? 4. An offer was made by Mr. X to Mr. Y through registered mail for the purchase of Y's car. Contained in the mail were the contact details of Mr. X. Mr. Y, residing in Baguio City emailed his reply accepting the offer of Mr. X in all respects. Mr. X however thereafter decided to withdraw the offer. Mr. X claims that no contract has yet been perfected. He claims that he hadn't read yet the acceptance as he forgot his email password and that the acceptance is not in proper form. Is Mr. X correct? 5. Mr. D is a dealer of pieces of jewelry. Mr. E is looking for a diamond ring to be used as an engagement ring as he is planning to propose to his girlfriend he is dating for 10 years. Mr. D and Mr. E thereafter entered into a contract of sale involving a diamond ring. At the time of delivery, Mr. D purposely and with intent swapped the diamond ring with a ring with shiny stone with no value. Upon discovery, Mr. E asked for your help with legal remedies. What course of action/s would you advise him? .Will a case of mistaken identity result in vitiated consent? Explain. . On November 21, 2014, Mr. G, guardian of Mr. M who is 16 years old, entered into a contract of sale with Mr. F involving a house and lot owned by Mr. M. The lot was sold for an inadequate value. In 2019, Mr. M is now seeking your advice. What legal remedy/ies shall he avail? . On November 21, 2014, Mr. M, who is 16 years old, entered into a contract of sale with Mr. F involving a house and lot owned by him and to be paid in installments payable at the end of each year for 5 years. The lot was sold for an inadequate value. At the start of 2019 and before receiving the last installment, Mr. M is now seeking your advice. Can Mr. M recover the house and lot? . Mr. Right, on bended knees, asked the hand of Ms. Beauty for marriage. Ms. Beauty says yes. Four hours later Mr. Right has a change of heart. He no longer wished to continue with the marriage. Ms. Beauty, with a broken heart and eyes sore from crying, sued for specific performance claiming a contract has been perfected between her and Mr. Right. Mr. Right, however, claims that the contract is unenforceable as it falls under the Statute of Frauds. Rule on both parties' contentions. Which of them is correct? Can Ms. Beauty demand the performance of the contract? 10. Mr. A is an agent of Mr. P. The contract of agency says \"The agent is given full authority to sell the house and lot owned by the principal for an amount not lower than Pl million\". Mr. A sold the property to Mr. B for P950,000. Mr. B now is asking Mr. P to transfer the title of the house and lot. Mr. P is now asking for your advice. Can he refuse the demand of Mr. B