NOTE: THIS IS BASED ON PH CIVIL CODE FOR OBLICON

PROBLEMS

Explain or state briefly the rule or reason for your answer.

1. D owes C P 100,000.00. Since D fails to pay, C expressed its willingness to accept the car of D, with the same value, more or less, in payment of his debt, D, in bad faith, sold car to X. Has C the right to ask for the rescission of the sale?

2. F, guardian of M (minor), sold to B a property of M with a market value of P 50,000.00 for only P37, 000.00, or a difference of more than (P12,500.00) of the value. If rescission of the sale is demanded, what possible defense under the law can B present to avoid rescission?

3. S, a minor, sold a property to B., Later, the sale is annulled on the ground of the minority of S. Is S bound to return the price received by him?

4. In the same problem, suppose S, upon reaching the age of majoritydecided to ratify or respect the contract. Has B the right to refuse the ratification and demand mutual restitution of the property and the price?

5. Again, in the same problem, suppose the sale was annulled by the court, what are the rights of the parties if the property was lost or destroyed?

a. Without the fault of B?

b. Through the fault of B?

6. I, an insane person, entered into a contract with M, a minor, What is the effect of ratification.

a. By either; and

b. By both, after becoming incapacitated?

7. D (debtor) owes C (creditor) P 10,000.00. T (third person) orally promised to assume the obligation of D. Can the promise of T be proved by the testimony of a witness who was present when T made the same?

8. S orally agreed to sell his piano for P 7,000.00 to B who made a partial payment of P 1,000.00. Later, S denied there was a sale. Can B enforce the sale considering that the contract was oral and the price was more than P 500.00

9. S (seller) and B (buyer) entered an absolutely simulated contract of sale of a parcel of land. S brought action in court to recover the land only after 20 years. Is it correct for the court to dismiss the action because of the long lapse of time?

10. In consideration of P 10,000.00 given by X to Y the latter agreed to burn the house of Z. Later, X told Y to forget the agreement and to return the money. Y refused. Is X entitled to recover from Y?

11. W (woman) agreed to stay in the house of M (man) as the latter's live-in partner for one year in consideration of the latter's promise to

pay her P 100,000.00 after said period. W complied with her part of the agreement but M reneged on his promise. Is W entitled to recover from M?

12. C (creditor) sued D (debtor) for nonpayment of the latter's obligation. D won the case on a technicality (not on the merits). Nevertheless, when C asked payment again, D paid him. Now, D demands the return of what he has paid claiming, he should not have paid C since he had no more obligation to C under the law. Decide.

13. M, a minor, bought a bicycle for P 2,000.00 from N, who is not a minor. Under the law, the contract is voidable because M is incapacitated to give consent because of his minority. Give the situation by reason of which M cannot recover the P 2,000.00 from N.