1) X entered into a contract of sale with right to repurchase with Y over a house and lot belonging to him.

Can he sell that right? Why? 2) In a contract of lease over a 400 square meter lot, there was an offer to sell, but the parties failed to agree on the size of the land to be sold. Was there a meeting of the minds of the parties? Why? 3) X and Y entered into a contract of sale over a parcel of land without any cause or consideration. Is the contract valid? Why? a. Suppose the cause or price was not paid, is the contract valid? Why? 4) A contract of sale was entered into by and between A and B whereby A sold and delivered a parcel of land to B. The contract, however, did not state the consideration, hence, after the death of A, his heirs filed an action for reconveyance contending that the contract is void due to lack of consideration. Will the action prosper? Why? 5) Petitioner sought to prevent the sales promotion scheme designated as Grand Slam for respondents products. He contended that this is a lottery. The scheme was to the effect that participants would submit pictures, one-half of which is found in the labels of the products and the other half from its accountants. Entries were sent to the accountant of the company with self-stamped envelopes. Was the contention correct? Why? 6) In a contract of sale of a car between A and B, they agreed that the consideration is P1.00 and other considerations. Is the contract valid? Why? 7) X and Y entered into an oral contract of sale of a parcel of land. X paid the consideration. When he demanded the delivery of the title, Y refused, contending that there was no written contract evidencing the same. What right, if may, does X have as against Y to enforce his rights? Explain. 8) Marlene Dauden, a movie actress, filed a complaint against A Co. Seeking to recover the amount of p14,700 representing the balance of her fee as leading actress in two movies produced by A Co. The company filed a motion to dismiss on the ground that the claim was not evidenced by any written document, public or private. It violated Art1358 NCC. The lower court granted the motion. Was the order dismissing the complaint proper? Why? 9) A contract of sale was entered into between the parties whereby Lot No.4163 was intended to be sold but mistakenly designated as Lot No. 5734. The seller did not object when the buyer took possession of Lot No. 4163. May this contract be the subject of an action for reformation of instrument? Why? 10) The late Virginia Tangga-an lease a house to the Spouses Alcaraz, but did not include the lot as it was owned by the NHA. The contract provided for a 5-year period but the lessees failed to pay the rentals despite demands to pay and vacate made by the lessor. Hence, a complaint for unlawful detainer was filed. The defendants filed an answer stating that the NHA transferred the house and lot to Virgilio and Angelita Tangga-an, the children of Virginia, hence, they contended that the change in ownership of the house and lot resulted in the cancellation of the lease contract. Therefore, they paid the rents to the new owners as the lessors have no more right to collect the rents. Is the contention of the defendants proper? Why? 11) X and Y entered into a contract of loan. X, the creditor, however, asked Y to sign a document which purported to be a sale of a parcel of land with the assurance that the same would only be

a security for the payment of the obligation. What is the remedy of Y in case X demands the delivery of the supposed security contending that X is now the owner of the property? Explain. 12) If in the contract A and B there was fraud or mistake which prevented the meeting of the minds between the parties, what is the remedy of the aggrieved party? Explain. 13) X and Y entered into a contract, X sought to enforce it by way of a suit in court. Can he still ask for the reformation of the instrument? Why? 14) A contract was entered into between the petitioner telephone company and Camarines Sur II Electric Cooperative, Inc. For the former to use the electric posts of the latter in consideration of the installation of ten telephone lines free of charge with the condition that the period of the contract shall be for as long as the telephone company has need for the posts, but it shall be terminated if the electric company is forced to stop or abandon its operations, as a public service and it becomes necessary to remove the electric light posts. After the contract had been enforced for over 10 years, the electric company filed an action for the reformation of the instrument on the ground that the contract is too one-sided in favour of petitioner and that the telephone cables strung by them have become much heavier with the increase in the volume of subscribers. To abolish the inequities, reformation is necessary. It is also alleged that the petitioner used tis posts outside Naga City, hence, it must pay damages. Finally, the respondent prayed that it be paid damages because of the losses it incurred for the poor service rendered by the petitioner. The trial court ruled for the respondent as it has become disadvantageous and unfair to private respondent; hence, it ordered the parties to reform their contract; to the extent that petitioner should pay for the use of the posts of respondent and respondent should pay the telephone service. On appeal to the CA, the latter affirmed the trial courts decision stating that Art1267 NCC applies and that the contract is subject to a potestative condition which rendered said condition void. A motion for reconsideration was filed but was denied, hence this petition. Petitioner contended that Art1267 NCC does not apply because the contract does not involve the rendition of service or personal prestation and it is not for future service with unusual change. 15) X and Y entered into a lease contract over a house and lot of X, the lessor, giving Y, the lessee, the right of first refusal to purchase the premises in case X decides to sell the property. When X decided to sell, he offered it to Y for P5M payable within one year. Since Y could not afford, Y communicated the inability to pay, hence, X offered it to X for P5M payable in four years. Title was later acquired by Z, thus, he filed an ejectment suit against Y who discovered the manner of payment. Discuss the remedy/remedies of Y, if any, as against X and Z. State whether the action will prosper and why. 16) In Legarda Hermanos vs. Saldana L-26578, Jan28, 1974, a sale of instalment of two lots was entered into by the parties. Adding all the payments made, the buyer was able to pay an amount equivalent to one lot but he failed to pay for the two lots hence an action for recission was filed by the seller. Will the action prosper? Why?

17) A contract of sale of land was entered into where the seller warranted peaceful possession of the property sold. However, the seller failed to eject the tenants. Can this failure to eject the tenants be a ground to rescind the contract? Why? 18) The Barredo spouses sold a house and lot to the Leano spouses for P400,000. It was stipulated that upon the signing of the instrument of sale, the Leano spouses shall pay P200,000 with the balance payable within a certain period. It was further stipulated that the buyers shall assume the mortgage indebtedness to the SSS and Apex Mortgage and Loans Corporation upon the signing of the document of sale. The Barredo spouses filed a complaint for rescission of the contract for failure of the buyer to pay the mortgage indebtedness. The buyers contended that rescission cannot prosper because the payment of the mortgage indebtedness was only a collateral matter or agreement which does not detract from the condition of paying the principal consideration. The complaint was dismissed on the ground that there was not material breach, hence, rescission was not proper. Is the dismissal correct? Explain. 19) X has a property. He donated it to Y on March 27, 1999. On March 27,2000, X incurred an obligation from Z. Can Z file an action for recission of the donation after a judgment is rendered holding X liable? Why? 20) X obtains a load from Y. As security for the payment of the obligation, X executes a real estate mortgage with the condition that if X fails to pay Y could foreclose the mortgage. In case X does not pay the loan, can Y rescind the contract? Why? 21) A sold his car to Y for P400,000. After Y paid P300,000 X agreed to have the car transferred in the name of Y provided that Y would pay the balance of P100,000 within 10 days from the registration of the same. After the certificate of registration was issued, Y sold it to Z who registered it under his name. Y failed to pay. Can X rescind the contract? If not, what is the remedy? Explain. 22) X and Y entered into a contract of sale over a parcel of land. X, the owner-seller, reserved the right to rescind in case Y would not comply. Y failed to comply but X gave him a series of extensions. Thereafter, he wanted to rescind the contract. Can he validly do so? Why? 23) X brought a car from Y valued at P200,000 payable in 3 monthly instalments. Upon the signing of the contract, X paid P100,000. The balance was payable in May and June 1993 with an extension of 1 month. X failed to pay. Demands were made for the payment, hence, X paid Y the amount of P10,000 in August 1993; P20,000 in September 1993, and P10,000 in October 1993. On November 3, 1993, Y notified X that he has rescinded the contract for Xs failure to pay the balance on time. Is the action of Y proper? Why? 24) In a contract of lease there is a provision giving the lessee the right of first option or priority to buy the properties subject of the lease wherein a violation of the same gives rise to a valid cause of action. In this case, the lessor sold the property leased to a third person; and realizing her error, she repurchased the same. She then offered it for sale to the lessee for P15M which the latter rejected because the price was ridiculous. Finally, she sold it to another for P9M. In the first sale, there was no prior offer to the lessee for the latter to exercise the right of first option or priority to buy. a. Can the lessee file an action for rescission so that he can exercise the first option to buy? Why?

b. What is meant by the phrase all things and conditions being equal in a contract of first option to buy? Explain. c. State the basis of the right of first refusal.