Obligation and contracts

1. Jane, guardian of Jenni (minor), sold to susan a property of Jenni with market value at 500,000,00 for only 375,000. Can the sa le be a subject of an action for rescission? Explain the rule or reason for your answer.

2. Vina, an insane person, entered into a contract with Genevive, a minor. What is the effect of ratification?

a. by Vina or Genevive, when no longer incapacitated?

b. by both, when no longer incapacitated?

3. i. Susan is obliged to deliver a ring to Roel. Before the scheduled delivery, the ring was lost in a fire through no fault of Susan.

ii. John is obliged to deliver 50 bags of cement to Irvin. Before the scheduled delivery, the warehouse of John containing 5000 bags of cement from which John intended to get the 50 bags of cement for delivery to Irvin, was razed in a fire together with the stock of cement through no fault of John.

i. Is the obligation in I extinguished? Why?

ii. Is the obligation in II extinguished? why?

4. Eligio Sr., the father of Josefina and Eligio Jr., is the owner of two parcels of land, (500 sq.m. and 451 sq. m.) located at Barangay San Andres, Cainta, Rizal.

On January 3, 1991, Julian bought from Eligio Sr. the first parcel, for the price of

P1,000,000, paid it in installments from November 30, 1990 to August 10, 1991.

On March 12, 1991, Julian bought again the second parcel, for P750,000.

Now, the children of Eligio, Sr., Josefina and Eligio Jr., contending that the contract price for the two parcels of land was grossly inadequate, tried to negotiate with heirs of Julian to increase the purchase price. When Julian's heirs refused, the children of Eligio, Sr., Josefina and Eligio Jr. filed a complaint for annulment of sale, with the RTC of Antipolo City.

In their complaint, they retained the ownership over the two parcels of land as heirs of Eligio Sr. because allegedly the sale of the two lots to Julian was null and void on the ground that at the time of sale, Eligio, Sr. was already incapacitated to give consent to a contract because he was already afflicted with senile dementia, characterized by deteriorating mental and physical condition including loss of memory.

In his answer, Julian alleged that the heirs if Eligio Sr. was estopped from assailing the sale of the lots because they effectively ratified both contracts of sales, by receiving the consideration offered in each transaction.

How did the Supreme Court ruled on the facts above? Are the assailed contracts of sale vod or merely voidable and bence capable of being ratified?

5. Give two (2) examples of natural obligations under the law