University of Southern Philippines FoundationCollege of Accountancy

OBLIGATIONS & CONTRACTS

August 05, 2014

I. A was indebted to B. The debt was supposed to be paid in installments. There was no provision in the contract by which upon failure of one installment of the debt, the whole debt should thereupon become once payable. A was unable to pay one installment on time. B brought an action not only to recover said installment but the entire debt. How much can B recover?II. A will give B a car the moment X becomes 30 years old. Now, X is only 28. Suppose X dies at the age of 29, should A still give the donation?

III. A gave B a parcel of land on the condition that B will never go to the casino. A month later, B went to the casino. What happens to As obligation? What are the obligations of B?IV. In the same problem above, suppose in the meantime, the land had been improved through its nature or by time, who benefits from such improvement?

V. A borrowed P1,000,000 from B as a loan. A, on the other hand, is the owner of a garage where B deposits (for safekeeping) his car. B owes A P1,000,000 for deposit fees. Is this a reciprocal obligation?

VI. A bought lumber from B for the construction of his house. B delivered part of the lumber, which A immediately used. When B did not deliver the rest, A was forced to get lumber from other dealers. When B was ready to comply with the obligation of delivering the rest, A did not pay for such balance because he no longer needed them. B then sued A. A pleaded in defense that it was B who should be liable to him for the incomplete delivery. In his pleadings, A did not say, however, whether he wanted recession or fulfillment. A evidently did not want recession for then he would be obliged to return the lumber already used. A also evidently did not want fulfillment since he really did not need the rest of the lumber anymore. Decide on the case.VII. A was supposed to pay B P1,000,000 on Dec 31, 2013. But believing that the obligation was due and demandable already on Dec. 31, 2012, A paid B the P1,000,000 on said date. How much may A recover from B, say on June 30, 2013? (6% legal interest)VIII. Suppose in the preceding problem, A had paid prematurely knowing fully well of the existence of the term, how much can A recover?

IX. A sold a boat to B for P600,000 payable in quarterly installments of 10,000 each. The boat was made security for the debt. Shortly after delivery to B, it was shipwrecked in a storm. ISSUE: Should A still pay? If so, when?

X. A is obliged to give B this car or this ring or this cigarette case. Nothing is said in the contract as to who was given the right of choice. Suppose B selects the car, is A bound by the choice made?

XI. A is bound to give B a pack of shabu, or a bottle of milk taken from a goat, or a particular cigarette case, or a particular fountain pen. Can A choose the first? Can A choose the second? Can A choose the third and fourth?