CIV REV 2

1. Out of his earnings from his royalties as author of books, Professor Xavier bought a
brand new Camry car. Under the contract, the car cannot be used as a taxi unit. Xavier,
however, converted it into a taxi unit.

a. If you were the counsel for the seller, what action would you file and will it
prosper? State your basis. Explain.

b. If you were Xavier, what defense would you interpose? Explain.

2. Alex and Bert entered into a contract of lease over two (2) theater belonging to Alex.
One of the items and conditions of the contract is that, if during the 10-year period of
the same, Alex will decide to sell, Bert will be notified so that he may exercise the option
to buy. Alex decided to sell, hence, notice was given to Bert, that he was selling the
property for Php30 million in cash and Bert has to pay within one (1) month from
receipt of the notice. Bert notified A that he was exercising the option, but one (1) week
later, Alex sold it to Carlos.

a. Bert filed a complaint for annulment of contract. If you were the counsel of Alex,
what defense would you interpose? Explain.

b. If you were the judge, how would you decide? Explain.

3. A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6000
apples. What are the rights and obligations of the buyer?

a. Buyer may accept the goods included in the contract and reject the rest
b. If buyer accepts the whole of the goods so delivered he must pay for them at the
contract price.
c. If the subject matter is indivisible, the buyer may reject the whole of the goods.
(Art. 1522)

4. Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one
of the five lots he owns, without specifying which lot it was, for the price of P1 million.
Later, the parties could not agree which of the five lots he owned Lino undertook to sell
to Ramon. What is the standing of the contract?

5. Asiong borrowed P1 million from a bank, secured by a mortgage on his land. Without his
consent, his friend Boyong paid the whole loan. Since Asiong benefited from the
payment, can Boyong compel the bank to subrogate him in its rights as mortgagee of
Asiong’s land?
 Boyong cannot compel the bank to subrogate him in its right as mortgagee of Asiong’s
land. According to Article 1237, whoever pays on behalf of the debtor without the
knowledge or against the will of the latter, cannot compel the creditor to subrogate
him in his rights, such as those arising from a mortgage, guaranty, or penalty. Boyong
can only demand reimbursement up to the amount or extent by which Asiong was
benefitted. He cannot compel the bank to subrogate him in its rights as mortgagee of
Asiong’s land.

6. Rudolf borrowed P1 million from Rodrigo and Fernando who acted as solidary creditors.
When the loan matured, Rodrigo wrote a letter to Rudolf, demanding payment of the
loan directly to him. Before Rudolf could comply, Fernando went to see him personally
to collect and he paid him. Did Rudolf make a valid payment?

Rudolf did not make a valid payment. Art. 1214 provides that the debtor may pay any
one of the solidary creditors; but if any demand, judicial or extrajudicial, has been
made by one of them, payment should be made to him. If the debtor pays to a
creditor who did not make the demand, the same is deemed a payment made to a
wrong person, in so far as the shares of the others in the credit are concerned.

7. Allan bought Billy’s property through Carlos, an agent empowered with a special power
of attorney (SPA) to sell the same. When Allan was ready to pay as scheduled, Billy
called, directing Allan to pay directly to him. On learning of this, Carlos, Billy’s agent, told
Allan to pay through him as his SPA provided and to protect his commission. Faced with
two claimants, Allan consigned the payment in court. Billy protested, contending that
the consignation is ineffective since no tender of payment was made to him. Is he
correct?

Billy is not correct. As a general rule, to shield himself from responsibility arising from
an obligation, the debtor should make a tender of payment to the creditor, which if
refused, should then be followed by a complaint for consignation. However, Article
1256, par. 2 provides that consignation alone shall produce the same effect when two
or more persons claim the same right to collect. In this case, both Allan and Carlos are
claiming the same right to collect. Hence, no tender of payment is needed. The
consignment made by Allan is effective.

8. What is a natural obligation under the New Civil Code of the Philippines?

According to Art. 1423, Natural obligations are those that are not based on positive
law but on equity and natural law and which do not grant a right of action to enforce
their performance, but after voluntary fulfillment by the obligor, they authorize the
retention of what has been delivered or rendered by reason thereof.