TRIMEX COLLEGES

Biñan City, Laguna

OBLIGATIONS AND CONTRACTS

Final Examination

Test Instructions:

1. This is a 100 item examination consist of two parts; the first part should be in a typewritten format
with the label “Part I”, while the second part should be in a typewritten format with the label “Part
II”. DO NOT INCLUDE BOTH PART I AND PART II IN THE SAME PAGE.

2. The first part consists of enumeration examination format. Answer what has been asked. Wrong
spelling constitutes wrong answer. Most of the questions were obviously discussed by your
professor.

3. The second part consists of the essay type format of examinations. Students will be tested on their
analytical skills and comprehensive application of the pertinent laws regarding Obligations and
Contracts using various situations. Every item has its 2 or 3 sub-questions. Answer confidently
with precise and correct grammar, most importantly the application of the discussions on
Obligations and Contracts.

4. The professor has a first-hand idea of rampant second-hand copying with editing and paraphrasing
on a take home examination. Beware, I will read and compare your answers.

5. Submit your answers on or before 27 October 2019, 11:59 P.M. Late submissions will
automatically constitute a failing grade.

6. Best of wishes and good luck on your future endeavours.

_____________________________________________________________________________________

FILBERT ANTHONY BAUTISTA MEJORADA, BA, J.D. (cand.)

Instructor – Obligations and Contracts
First Semester, A.Y. 2019-2020
 PART I.

1 – 5. Sources of obligations;
6 – 8. Different kinds of prestations;
9 – 12. Basic Elements/requisites of an obligation;
13 – 15. Basic Elements/requisites of a contract;

16 – 20. Different Kinds of Damages (give at least 5);

21 – 22. Two (2) kinds of Delay;
23 – 25. Three (3) other forms of payment for extinguishment of obligation;
26 – 27; Two (2) principal kinds of condition;
28 – 30; Three (3) kinds of negligence (culpa);

31 – 40; Ten (10) Primary classification/kinds of obligations;

41 – 45; Different modes of extinguishment of obligations (give at least 5);
46 – 49; Four (4) kinds of Defective contracts;
50. On what Philippine Code/Law the provisions of Obligations and Contracts existed?

PART II.

1. Bongbong and Leni, 14 and 15 years old respectively, represented by their mother, Imelda executed
a loan agreement with Mar on November 4, 2019, amounting to Php 700,000.00. It is stipulated
that Imelda promised to pay Mar on or before December 22, 2019 with 6% interest per annum.
Unfortunately due to unexpected circumstances, Bongbong, Leni and Imelda failed to pay Mar on
the date agreed upon despite several demands. Thus, Mar sued them for breach of contract with
damages. On its counter/answer, Imelda argued that the loan agreement was void from the
beginning, considering that her sons were all minors.
a.) Is Imelda’s argument valid? Why or why not? (5%)
b.) Contrary to question A, Is Mar’s argument valid? Why or why not? (5%)

2. Jollidonalds, a fastfood company registered and existing under the laws of the Philippines, executed
an agreement with BRB Inc., a rice miller company also registered and existing under the laws of
the Philippines, on November 30, 1995, which stipulates that BRB shall deliver five hundred
thousand (500,000) sacks of Sinandomeng Rice every 30th of the Month, to Jollidonalds, in
consideration of the amount of Five Million pesos (Php 5,000,000.00). A first 500,000 sacks was
delivered on November 30, 2019 covering the supply of rice of the fast food chain for the whole
month of December.

For the month of January to May, BRB successfully delivered 500,000 sacks to Jollidonalds as
agreed. However, for the month of June, BRB delivered only 300,000 sacks of rice, in which
Jollidonalds accepted. This was repeated on the month of July and August, until September, a huge
 typhoon named Pitaklong destroyed all the crops in Central Luzon and Visayas, leaving BRB
delivered only 150,000 sacks of rice to Jollidonalds.

With the sale of Jollidonalds fluctuating because of no rice in their regular menu, in the month of
October, Jollidonalds immediately requested for the rescission of contract and demanded BRB to
pay for the value of undelivered sacks of rice to them for the months of July to October amounting
to Php 10 million pesos. On the other hand, BRB argued that they shall not be held liable for the
value of undelivered sacks of rice because of the fortuitous event which stopped their milling
operations.
a.) Is BRB’s contentions correct? Why or why not? (5%)
b.) What are the requisites for the reason of fortuitous event will prosper? (5%)

3. Rule whether the following obligations are: Pure, Conditional, Alternative, Facultative, Joint,
Solidary, Divisible, Indivisible or with Penal Clause and explain why by citing the correct
provisions under the Obligations and Contracts:
a.) A shall give an IPhone Pro-max XX to B if B will pass the CPA Board Exams. (5%)
b.) The RTC of San Pedro rendered a final judgment against X for the crime of murder.
Part of his imprisonment is an obligation to pay the heirs of the victim amounting to Five
Million Pesos (Php 5,000,000.00) as moral damages. (5%)
c.) Rody is indebted to Bong amounting to Fifty Thousand Pesos (Php 50,000.00) and has
the option either to pay the whole amount or to give a brand new Dell Laptop. (5%)
d.) Spongebob Squarepants, together with Patrick Star as the co-maker, applied for a
salary loan to Eugene Crabs amounting to Twelve Thousand Pesos (Php 12,000.00). (5%)
e.) Y sold a parcel of land with improvements hereon to Z, in consideration of the amount
of One Million Pesos (Php 1,000,000.00). (5%)

4. Distinguish the difference between Obligations and Contracts. (5%)

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