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Problem 2: Is S guilty of legal delay? Problem 3: Suzie and the colt Problem 4: Is D liable to pay interest? 20.00 Php Wednesday, October 21, 2014 Chapter II S (seller) sold to B (buyer) on July 5, a horse named Silver to be delivered on July 20. However, on July 15, S sold again and delivered the horse to T. Who has a better right to Silver? Problem 1: Who has a better right to Silver? Problem 5: Can R still collect rents? NATURE AND EFFECT OF OBLIGATIONS Art. 1164 The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. (1095) T has the better right to Silver than B. S sold to B a specific refrigerator which S agreed to deliver not later than July 31, S did not deliver the refrigerator on said date. Is S guilty of legal delay? Art. 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. S is guilty of legal delay, effected by mora solvendi Mora solvendi - delay on the part of the debtor to fulfill his obligation The obligations of S are the following: i. Preserve the thing ii. Deliver the fruits of the thing iii. Deliver the accessions and the accessories iv. Deliver the thing itself v. Answer for damages in case of non-fulfilment or breach S has the right to the colt T is the lawful owner of Suzie Art. 1163 Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care. (1094a) Art. 1164 The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. (1095) S promised to deliver to B a female horse named Suzie on July 10. Suzie gave birth to a colt on July 5.

D (debtor) borrowed 20,000 Php from C (creditor) payable after one (1) year? Is D liable to pay interest? Art. 1175 Usurious transactions shall be governed by special laws. (n) D is liable to pay interest to C if: (1) they have expressly stipulated that a certain amount of interest may be recovered by C, and (2) there is a written agreement between D and C about the interest. The payment of the interest is invalid if there is no agreement on the interest per se. R (lessor) issued a receipt that E (lessee) has paid the rent for the month of March 2008. Can R still collect from E the rents for January and February 2008? Art. 1176 The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid. Yes, R can still collect the rents for January and February 2008 from E.

. . The Law on Obligations and Contracts 2011 Midterm Examination Submitted by: Domingo, Dennimar O. TTh 17:00 18:30 Submitted to: Pio Sara Jagurin 2. II. Discussions 1. Illustrate an obligation subject to: (a) Suspensive Condition When an obligation is subject to a suspensive condition, the creation of the obligation will depend on the occurrence of an event or on the certainty that the event will not occur; thus, the condition delays the creation of a relationship between the parties. As long as the condition has not occurred, the very existence of the obligation is not yet arises. For example, If your rent is due on the 30th, you have an obligation to pay the rent. The performance to pay occurs on the 30th. The performance is suspended until the 30th. (b) Resolutory Condition Resolutory condition refers to a condition whereby, upon fulfillment terminates an already enforceable obligation. The continuance of such a contract is made dependent upon the happening of an uncertain future event. However, there is no postponement or suspension of the contract and all rights and obligations come into existence immediately upon conclusion of an agreement between the parties. For instance, You have a car note over the next 10 years. Once you pay the last payment at the end of 10 years, the obligation ends. What is the effect of the fulfillment of the condition in a conditional obligation? The suspensive condition is when the parties agree that the duty to perform is postponed until a determined or determinable date due to the pending event, and that this event is certain to happen. However, the exact date is unknown. The obligation will arises when the said condition is already fulfilled. While in the resolutory condition, when the parties agree that the

obligations in the contract will be terminated upon a certain future time. This exact time is certain to happen, but the exact date is unkown. 3. 2. Give two (2) cases when the conditional obligation is valid although the condition depends entirely upon the will of the debtor. Explain. First case is when the debtor promises to pay when his means permit him to do so. In this case, what depends upon the will of the debtor is the duration of the period when he is capable on paying his debt and not whether he should comply or not. For example, Mr. G binds himself to pay Ms. Y of his debt that costs ₱10,000 little by little. This obligation is valid and it shall be deemed to be one with a period of time. Next case is when the debtor is capable of doing the said obligation. For example, Marie borrowed 5,000 to Rose payable on September 13. Due to the review of financial reverses, Marie now is not capable on paying the debt to Rose but Marie is willing to pay the said debt. The remedies of Rose will arise 3. May an obligor be liable under an obligation subject to a suspensive condition although the condition has not yet been fulfilled? Explain. Under the suspensive condition, the obligation will arises when the said condition is already fulfilled. Therefore, under this type of condition, the obligor or the debtor is not yet liable. The debtor would be liable if the condition is already fulfilled. 4. In obligation to give a parcel of land subject to a suspensive condition, who is entitled to the fruits that accrued during the pendency of the condition once said condition is fulfilled? Upon the fulfillment of the obligation, the seller has the right to keep to himself all the fruits and interests he may have received during the pendency of the condition, unless a contrary intention by the seller that he shall render an accounting of fruits received during its pendency. 4. 5. State the rules in case the thing to be delivered: (a) is lost with the debtor’s fault; without his fault; If the delivery lost is due to the debtor’s fault, the debtor has an obligation to pay the damages that incurred and the price of the thing that is lost also can be demand. If the delivery lost without the fault of the debtor, the debtor is not liable for any obligation or the obligation shall be extinguished. We are not liable for the fortuitous event or any event that beyond our powers. (b) Deteriorates with the debtor’s fault; without his fault If it deteriorates through the fault of the debtor, the creditor may choose between the 2 remedies as a creditor, which is the rescission or the fulfillment of the obligation, with damages that incurred in either case. As a creditor, you only have to choose one of the remedies that are given. If it deteriorates

without the fault of the debtor, the value of thing that delivered will be depreciated and the value will be reduced due to the deterioration of the thing. 5. III. Problems Explain or state briefly the rule or reason for your answer. 1. D (debtor) borrowed 20,000 from C (creditor) payable on or before August 30. Before the arrival of the due date, C agreed to the promise of B to pay C if B wants. Can C insist that B pay not later than August 30? On this situation, the conditional obligation whose fulfillment depends partly on the will of the debtor and partly upon the will of the third person is perfectly valid. In this case, it shows that the creditor demands the third person to pay him not later than August 30 but on the said case, they agreed on the promise of the third person to pay the creditor if the third person wants. Therefore, the creditor cannot demand to the debtor if the due date is not yet passed. 2. Suppose in the same problem, D obliges himself to pay C 10,000 after C has paid his obligation to T. Is the obligation valid? The said condition is considered as the suspensive condition wherein the obligation will only arises if the condition is already fulfilled. The debtor obliges himself to pay the creditor if the creditor already paid the third party. If the creditor has not yet fulfilled his obligation to the third party, he cannot demand the debtor to pay him immediately. Therefore, the obligation of the debtor is invalid. The debtor is not liable to pay the creditor if the creditor is not yet paid to the third party. 3. S (Seller) agreed to sell to B (buyer) a specific car for 200,000, delivery of the car and the payment of the price to be made on June 15. Suppose S delivered the car on June 15 but B failed to pay the price, what are the remedies of S? If the buyer does not comply with his obligation to pay, the seller may choose between the two remedies: (a) action for specific performance (fulfillment) of the obligation with the damages; or (b) action for the rescission of the obligation also with damages. The seller has the privilege to choose only one of the remedies, and not both. If the creditor chosen rescission, he cannot demand the fulfillment of obligation to the buyer. Same as, if he chosen the buyer to fulfill the obligation, he cannot practice the rescission later on. 6. 4. S sold a parcel of the land to B for 240,000 payable in installment of 20,000 a year. The land was delivered to B who obtained ownership thereof. After B had paid 200,000, he could no longer continuing paying in view of financial reverses but he was willing to pay the balance of 40,000 if given more time. Thereupon, S sued for rescission under Article 1191. If you were the judge, would you grant rescission? If I were the judge, I would grant the rescission of Seller in default a term

or period for the performance of the Buyer. The buyer is willing to comply with his obligation to pay the maintaining balance that cost 40,000 but needs time to do so due to the view of his financial reverses, not because he doesn’t want to pay the maintaining balance that he’d left. 5. D (debtor) binds himself to pay C (creditor) a sum of money. Give the three (3) cases when the obligation of D is demandable at once by C?  When the obligation is pure… An obligation is demandable at once if it is pure obligation which one is not suspended by any condition, whether it has been contracted without any condition, or when thus contracted, the condition has been performed. It is immediately demandable. Their agreement doesn’t have specific date, and conditions so the creditor can demand to pay the said amount to the debtor.  When the obligation is subject to a resolutory condition… On the above description of resolutory obligation, once the condition is already fulfilled, the obligation will be extinguish. The creditor can demand to the debtor during the fulfilling of the condition.  When the obligation is subject to a resolutory period… Same as the case above, the creditor can demand to the buyer while in the process of fulfilling the condition. If the creditor and the debtor agree on the period wherein the obligation is extinguished, he can demand to the buyer to pay the amount he borrowed.