Fourth Exam

Law 1
Time: ________

Please write your name, time schedule and indicate your final permit number.
Answer legibly. A mere yes or no answer shall not be given any credit.

D lost in gambling and as payment, executed a promissory note in favor of the

winner C. c then assigned the note to A. May A successfully recover from D? (4 pts)

II

A shipped his cargo in B’s vessel. B and C’s company entered into a contract for
C’s company to unload the cargo from the ship’s hold. In the lifting operations, A’s cargo
was damaged. May A successfully sue C’s company for damages? (4 pts)

III

While still in the process of negotiation, the offeree legally suspended the payment
of the check it had issued for failure of the offeror to sign certain documents. Was there
a contract here? (4 pts)

IV

In an advertisement for bidders, there was NO reservation by the advertiser that

he could reject any and all bids. Now then, is he still given the right to reject even the
highest bidder (as when the offer is to sell) or the lowest bidder (as when his offer is to
buy)? ( 4 pts)

Silvia signed a contract allegedly because he was afraid he would be dismissed

by his employer, should she refuse to sign. Was there intimidation if the threat of dismissal
is not proved? (4 pts)

VI

When as electric light plant was sold, the seller did not reveal that he had given up
the franchise. The franchise, however, was NOT the determining cause of the purchase
of the plant. May the sale be annulled? (4 pts)

VII

An agent persuaded his principal to sell certain properties to himself at a low price.
The agent did not reveal that the government was interested in acquiring said properties
at much higher prices. Is the sale to the agent voidable? (4 pts)

VIII

A sold his mansion worth P120 million to B for only P60 million because A did not
know the true value of the house. May the contract of sale be rescinded? (4 pts)
 IX

A donated real property to B in a private instrument. B accepted the donation. Is

the donation valid? (4 pts)

In a contract, although the original draft read in dollars, the contract was made out
in pesos through the typist’s fault. May the instrument be reformed? (4 pts)

XI

A and B entered into a so-called contract of lease, whereby B would pay certain
amounts as “rentals” and at the end of the “lease,” B would become the absolute owner
of the property. Is this really a lease or a sale in installments? (4 pts)

XII

A guarantor guaranteed the payment of rentals already due at the time the promise
was made. Is he also responsible for subsequent rents? (4 pts)

XIII

A piece of land was the subject of a litigation between Martinez and the Municipality
of San Pablo. After the case had been decided in favor of Martinez, he sold it to another.
Is the sale rescindable on the ground that the property was in litigation? (4 pts)

XIV

A minor contracted with X. X’s heir, Y, sues for annulment on the ground that the
other party was a minor. Will the case filed by Y prosper? (4 pts)

XV

A has a son B; C has a daughter D. A, B, C, and D agree together that

B will marry D. The agreement is oral. If D later on refuses to marry B who has spent for
the necessary wedding preparations, and A and B bring an action against C and D, will
the action prosper? (4 pts)

Good Luck and God Bless Us All!

Atty. Ryan Ric B. Bisnar