Personal Obligations

Article 1167. If a person obliged to do something fails to do it, the same shall be executed at his cost. The same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone.

Article 1168. When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense.

Q36. X agrees to sing three (3) songs in the birthday party of Y. In turn, Y promises to repair the desktop computer of X within two (2) weeks. However, after two (2) months, Y returns the desktop computer of X unrepaired and with some missing parts. What are the rights of X against Y in this case?

Q37. X verbally hires Y for Php200,000 to build his (X) house, consisting of two bedrooms on the first floor and one master bedroom with a terrace on the second floor. However, upon completion of the construction, the house has two bedrooms only, one on the first floor and another room on the second floor. Further, the size of the terrace is smaller that the size agreed upon. What are the rights of X against Y in this case?

On Delay

Q38. "X" promises to give his old Samsung mobile phone to "Y" on or before 31 January 2021. After more than a week, the promised phone has not been delivered yet. Is "X" deemed in delay in the performance of his obligation that will make him liable for damages to "Y"?

Q39. Godfather "Y" fails to deliver the biggest pig in his piggery to his godchild "X" on the day of the latter's wedding. No demand to deliver the pig is made by "X" even after the lapse of two (2) weeks. Is "Y" already in delay in the performance of his obligation to "X"?

Article 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation

However, the demand by the creditor shall not be necessary in order that delay may exist:

Article 1169...

(1) When the obligation or the law expressly so declares;

(2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or the service is to be rendered was the controlling motive for the establishment of the contract; or

(3) When demand would be useless, as when the obligor has rendered it beyond his power to perform.

In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligations, delay by the other begins.

Q40. On 31 January, "X" and "Y" enter into a contract of sale of a Samsung Note 11 for Php50,000. They agree that payment of the price and delivery of the mobile phone will be on 05 February. On 05 February, "X" has not come up with the purchase price and "Y" has not received from his supplier his order of Samsung Note 11 phones. Are they both in delay in the performance of their respective obligations?

Q43. "A" supplies luxury Gucci bags to "B" at a price of Php50,000. "B" promises to sell five (5) Gucci bags to "C" for Php60,000 each, for a total profit of Php50,000. However, "A" fails to deliver the supplies of phone to "Y", which compels "C" to order from "D". Because of the loss of profit, "B" suffers from hypertension, is hospitalized and spends P10,000 as medical expenses. Is "B" entitled to collect damages from "A"? Explain.

Q45. The house is insured for fire by "A" with XYZ Insurance Company for Php3 Million. When "A" files a claim, XYZ Insurance refuses to pay on the ground that the lightning is a fortuitous event which excuses it from its obligation. Is XYZ Insurance Company correct?

Q46. What are the two kinds of presumption?

Q47. "A" obtains a loan of Php1 Million from Bank of America, with 10% interest payable in January 2020. In February 2021, the Bank of America issues a receipt to "A" which reads - "Receives from "A" the amount of Php1 Million as payment." What is the presumption created by this receipt?

Q48. "X" is renting an apartment from "Y" for Php10,000 monthly. Because of the pandemic, "X" has not paid the rent from September 2020 to December 2020. In January 2021, when "Y" tries to collect the rentals, "X" pays Php10,000 and "Y" issues a receipt that states - "Receives from "X" the amount of Php10,000 for January 2021 rental." What is the presumption created by the receipt?