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Sample Questions:
1. Dux leased his house to Iris for a period of two years, at the rate of
P25,000.00 monthly, payable annually in advance. The contract stipulated that
it may be renewed for another two-year period upon mutual agreement of the
parties. The contract also granted Iris the right of first refusal to purchase the
property at any time during the lease, if Dux decides to sell the property at the
same price that the property is offered for sale to a third party. Twenty-three
months after execution of the lease contract, Dux sold breach of her right of
first refusal. Dux said there was no breach because the property was sold to his
mother who is not a third party. Iris filed an action to rescind the sale and to
compel Dux to sell the property to her at the same price. Alternatively, she
asked the court to extend the lease for another two years on the same terms.
a.) Can Iris seek rescission of the sale of the property to Dux's mother?
b.) Will the alternative prayer for extension of the lease prosper? (Bar
Question)
2. AB Corp. entered into a contract with XY Corp. whereby the former agreed to
construct the research and laboratory facilities of the latter. Under the terms of
the contract, AB Corp. agreed to complete the facility in 18 months, at the total
contract price of P10 million. XY Corp. paid 50% of the total contract price, the
balance to be paid upon completion of the work. The work started
immediately, but AB Corp. later experienced work slippage because of labor
unrest in its company. AB Corp.'s employees claimed that they are not being
paid on time; hence, the work slowdown. As of the 17th month, work was only
45% completed. AB Corp. asked for extension of time, claiming that its labor
problems is a case of fortuitous event, but this was denied by XY Corp. When it
became certain that the construction could not be finished on time, XY Corp.
sent written notice cancelling the contract, and requiring AB Corp. to
immediately vacate the premises.
a.) Can the labor unrest be considered a fortuitous event?
b.) Can XY Corp. unilaterally and immediately cancel the contract? (Bar
Question)
of payments be effected?
c.) Since B and C are now insolvent, how much can A collect from D and B?
d.) How much should X give to Y and Z? How much should Y give to X and Z?
e.) Can A and E extinguish their obligation to each other by compensation?
How about X and Y?
7. Lorna Tolentino filed a complaint against Regal Films to recover P250,000
representing the balance of her compensation as leading actress in a motion
picture produced by the company. The lower court dismissed the complaint
because the claim of Lorna Tolentino was not evidenced by any written
document, either public or private in violation of Article 1358 of the New Civil
Code. Was the ruling correct?
8. A taxi cab owned by Lester and driven by Johnny collided with another taxi
cab also owned by Lester driven by Pedro. As a consequence of the accident
Korina, a passenger in the cab driven by Johnny was seriously injured; while a
pedestrian, Mary, a wife and mother of three children was killed.
a.) May Lester, Johnny, and Pedro be held liable for the injuries sustained and