Problem 1.

Kim came across an advertisement while he was driving for a rush sale of her dream Toyota car for only P150,000. To take advantage of this sale, she called the advertiser, Chu, and placed an order over the phone and said she will go to the place tomorrow. Chu accepted the offer. However, Kim changed her mind and did not go to the place the next day. Chu now brings an action to compel the delivery.

1. Is there a perfected contract already? (5 pts)
2. What type of contract was perfected, if so? Verbal or written? (5 pts)
3. Given your answer in (b), is it enforceable? (5 pts)
4. If it is not enforceable, does this fall under the Statute of Frauds? Why or why not? (5 pts)

Problem 2.

Dana offered to buy a house and lot of for P500,000. Since Dana only had P300,000 at that time, she proposed to pay the balance of P200,000 in two (2) equal monthly installments or P100,000 each month. As the title to the property was to be immediately transferred to the buyer, Dana, to secure the payment of the balance of purchase price, proposed to constitute a mortgage on the property in favor of her boyfriend, Ben. Ben agreed to it and so the contract of sale in favor of Dana was signed.

However, when the installment became due (the P100,000), Dana could not pay because she lost her job and she broke up with Ben. Ben now wants to rescind the contract of sale to which Dana opposed.

1. Was there substantial performance at this point? [Clue: how much of the payment price was paid already from the total, can that be considered substantial?] (5 pts)
2. If there was substantial performance already, can Ben rescind the contract? Why? (5 pts)

Problem 3.

Jowa offered to sell her automobile to Kels for P60,000. After inspecting the automobile, Kels offered to buy it for P50,000. This offer was accepted by Jowa. The next day, Jowa offered to deliver the automobile but Kels being short of funds, secured postponement of the delivery, promising to pay the price "upon the arrival of his salary". He was however removed from work, so his salary never was paid.

1. What are the requisites to have a perfected contract? (5 pts)
2. Is there a perfected contract in this case? Why? (5 pts)
3. Is the promise to pay made by Kels upon the arrival of his salary conditional or with a term? Why? (5pts)
4. Can Jowa compel Kels to pay the P50,000 and to accept the automobile? Why? (5 pts)