OBLICON TEST EXAM

1. Fortuitous event; liability of the debtor (1932 BAR) A executed in favor of B a

promissory note for P10,000, payable after two years, secured by a mortgage
on a certain building valued at P20,000. One year after the execution of the
note, the mortgaged building was totally destroyed by a fire of accidental
origin. Can B demand from A the payment of the value of the note immediately
after the burning without waiting for the expiration of the term? Reasons. 

3. Obligations with a period; “When his means permit him to do so” (1973 BAR) D
borrowed P2, 000.00 from C in 1958. The debt is evidenced by a promissory
note executed by D wherein he promised to pay as soon as he has money or as
soon as possible. C has made repeated demands upon D for payment, but up
to now no payment has been made. Suppose that C will bring an action against
D for payment of the debt, will the action prosper? 

5. Obligations; conditional obligations (1975 BAR) 3

A owed B a certain sum of money. C wrote B a letter stating that he would be

the one to take care of A's debt as soon as A had made a shipment of logs to
Japan. A never made such shipment, C did not pay B. Is C liable to B? Explain.

6. Sources of obligation (1977 BAR) Taxi driver D, driving recklessly, killed

pedestrian P and his passenger Y. Discuss the source of the obligation of D and
of his employer to P and to Y, and the defense available to the employer. 

7. Reciprocal obligations; implicit resolutory condition; damages (1977 BAR) L

leased a house to J. The contract stipulates that in case of non-payment of the
rent, L can eject L without court action. J defaulted for two months. As a result,
L ejected him. Can J claim damages because the renunciation of his day in
court as stipulated in the contract is void?

8. Contracts; stipulation pour autrui (1977 BAR) What is a stipulation pour autrui
and what are its essential requisites? Give an example.

9. Resolutory condition; right of usurfruct (1979 BAR) On June 5, 1960, DP

delivered possession of his house and lot in the Poblacion of Polo, Bulacan to
AB who in turn delivered to the former possession of his 2-hectare rice land.
Both properties were unregistered. They executed a document entitled
“Barter’’ which, among others, provided that both parties shall enjoy the
material possession of their respective properties: that neither party shall
encumber, alienate or dispose of their respective properties as bartered
without the consent of the other; and that DP shall be obliged to return the
property to AB when the latter’s son shall attain majority and decide to return
DP’s property. After AB’s death and his son S attained majority in 1977, the
latter demanded for the return of the 2 hectares of rice land which had then
 increased tremendously in value. DP refused and so S fi led an action for
recovery of the land. Will the action prosper? Why?

10. Contracts; voidable contracts (1979 BAR) Mrs. S borrowed P20,000 from PG,
She and her 19-year old son, Mario, signed the promissory note for the loan,
which note did not say anything- about the capacity of the signers. Mrs. S
made partial payments little by little. After seven (7) years she died leaving a
balance of P10,000.00 on the note. PG demanded payment from Mario who
refused to pay. When sued for the amount, Mario raised the defense: that
when he signed the note he was still a minor. Should the defense be
sustained? Why?

11. Obligation with a period; courts fixing the period (1980 BAR) M and N were
very good friends. N borrowed P10, 000.00 from M. Because of their close
relationship, the promissory note executed by N provided that he would pay
the loan “whenever his means permit.” Subsequently, M and N quarrelled. M
now asks you to collect the loan because he is in dire need of money. What
legal action, if any, would you take in behalf of M?

13. Contracts; consent; invitation to bid (1980 BAR) "K" & Co. published in the
newspaper an "Invitation To Bid" inviting proposals to supply labor and
materials for a construction project described in the invitation. "L", "M", and
"N" submitted bids. When the bids were opened, it appeared that "L" submitted
the lowest bid. However, "K" & Co. awarded the contract "N", the highest
bidder, on the ground that he was the most experienced and responsible
bidder. "L" brought an action against "K" & Co, to compel the award to him and
to recover damages. Is "L's" position meritorious?

18. Fortuitous event; Depositary or bailee; Tender of payment (1981 BAR) S, an

American resident of Manila, about to leave on a vacation, sold his car to B for
US$2,000.00, the payment to be made ten days after delivery to X, a third
party depositary agreed upon, who shall deliver the car to B upon receipt of X
of the purchase price. It was stipulated that ownership is retained by S until
delivery of the car to X. Five days after delivery of the car to X, it was
destroyed in a fire which gutted the house of X, without the fault of either X or
B. (a) (b)

Is buyer B still legally obligated to pay the purchase price? Explain. May seller
S demand payment in U.S. dollars? Why?

20. Contracts; forms of contracts (1982 BAR) "A" and "B" entered into a verbal
contract whereby "A" agreed to sell to "B" his only parcel of land for P20,000,
and "B" agreed to buy at the aforementioned price. "B" went to the bank,
withdrew the necessary amount, and returned to "A" for the consummation of
the contract. "A" however, had changed his mind and refused to go through
with the sale. Is the agreement valid? Will an action by "B" against "A" for
specific performance prosper? Reason.

21. Obligations with a period; Court fixing the period (1982 BAR) A Corporation,
engaged in the sale of subdivision residential lots, sold to B a lot of 1,000
square meters. The contract provides that the corporation should put up an
artesian well with tank, within a reasonable time from the date thereof and
sufficient for the needs of the buyers. Five years thereafter, and no well and
tank have been put up by the corporation, B sued the corporation for specific
performance. The corporation set up a defense that no period having been
fixed, the court should fix the period. Decide with reason.

23. Obligations; extinguishment; payment (1983 BAR) A owes B P20,000 which

became due and payable last October 1, 1983. On that date, A offered B
P10,000 the only money he then had, but B refused to accept the payment. A
thereafter met C, B's 22-year old son, to whom he gave the P10,000 with the
request that he turn the money over to B. The money was stolen while in C's
possession. Was B justified in refusing to accept the payment of A? May he still
recover the full amount of his debt of P20,000? Why? 

24. Fortuitous events; circumstances when liability still exists (1983 BAR)

14

Cite three instances where a person is made civilly liable for failure to comply
with his obligations although he was prevented from doing so by a fortuitous
event. Suggested Answer: In the following instances, a person is still civilly
liable for failure to comply with his obligation although he was prevented from
doing so by a fortuitous event: (1) When by law, the debtor is liable even for
fortuitous events; (2) When by stipulation of the parties, the debtor is liable
even for fortuitous events; (3) When the nature of the obligation requires the
assumption of risk; (4) When the object of the obligation is lost and the loss is
due partly to the fault of the debtor; (5) When the object of the obligation is
lost and the loss occurs after the debtor has incurred in delay; (6) When the
debtor promised to deliver the same thing to two or more persons who do not
have the same interest; (7) When the obligation to deliver arises from a
criminal offense; and (8) When the obligation is generic. 

(Note: Any 3 of the 8 should be a correct answer. Nos. 1, 2 and 3 are based on
Arts. 1174 and 1262, NCC; Nos. 4, 5, and 6 are based on Arts. 1165 and 1262,
NCC; while Nos. 7 and 8 are based on Arts. 1268 and 1263, NCC.)

25. Fortuitous events; Liability of obligor (1983 BAR) A bound himself to deliver
to B a 21-inch 1983i model TV set, and the 13 cubic feet White Westinghouse
refrigerator, with Motor No. WERT-385, which B saw in A’s store, and to repair
B’s piano. A did none of these things. May the court compel A to deliver the TV
set and the refrigerator and repair the piano? 
26. Obligations; extinguishment; payment (1983 BAR) A owes B P20,000 which
became due and payable last October 1, 1983. On that date, A offered B
P10,000 the only money he then had, but B refused to accept the payment. A
thereafter met C, B's 22-year old son, to whom he gave the P10,000 with the
request that he turn the money over to B. The money was stolen while in C's
possession. Was B justified in refusing to accept the payment of A? May he still
recover the full amount of his debt of P20,000? Why? 

27. Obligations; extinguishment; payment; consignation, when applicable

(1984 BAR) A sold to B a parcel of land with the right to repurchase the same
within three years. A tendered the repurchase of price to B within the
prescribed 16

period, but B refused to accept it. A then brought an action in court for specific
performance. B contends that since A did not deposit the money in court within
the stipulated period for repurchase and the period has now lapsed, A can no
longer repurchase the property. Is this contention correct? Explain. 

28. Contracts; perfection of contracts; obligations with a period (1988 BAR)

Merle offered to sell her automobile to Violy for P60,000.00. After inspecting
the automobile, Violy offered to buy it for P50,000.00. This offer was accepted
by Merle. The next day, Merle offered to deliver the automobile, but Violy being
short of funds, secured postponement of the delivery, promising to pay the
price "upon arrival of the steamer, Helena". The steamer however never
arrived because it was wrecked by a typhoon and sank somewhere off the
Coast of Samar. (1) Is there a perfected contract in this case? Why? (2) Is the
promise to pay made by Violy conditional or with a term? Why? (3) Can Merle
compel Violy to pay the purchase price and to accept the automobile? Why? 

29. Obligations; extinguishment; novation (1988 BAR) Suppose that under an

obligation imposed by a final judgment, the liability of the judgment debtor is
to pay the amount of P6,000.00 but both the judgment debtor and the
judgment creditor subsequently entered into a contract reducing the liability of
the former to only P4,000.00, is there an implied novation which will have the
effect of extinguishing the judgment obligation and creating a modified
obligatory relation? Reasons. 

30. Contracts; voidable contracts (1990 BAR) X was the owner of a 10,000
square meter property. X married Y and out of their union. A, B and C were
born. After the death of Y, X married Z and they begot as children, D, E and F.
After the death of X, the children of the first and second marriages executed an
extrajudicial partition of the aforestated property on May 1, 1970. D, E and F
were given a one thousand square meter portion of the property. They were
minors at the time of the execution of the document. D was 17 years old, E
was 14and F was 12; and they were made to believe by A, B and C that unless
they sign the document they will not get any share. Z was not present then. In
January 1974, D,E and F filed an action in court to nullify the suit alleging they
discovered the fraud only in 1973. (a) Can the minority of D, E and F be a basis
to nullify the partition? Explain your answer. 19

(b) How about fraud? Explain your answer. 

31. Nature of Contracts; Obligatoriness (1991 BAR) Roland, a basketball star,

was under contract for one year to play-for-play exclusively for Lady Love, Inc.
However, even before the basketball season could open, he was offered a
more attractive pay plus fringes benefits by Sweet Taste, Inc. Roland accepted
the offer and transferred to Sweet Taste. Lady Love sues Roland and Sweet
Taste for breach of contract. Defendants claim that the restriction to play for
Lady Love alone is void, hence, unenforceable, as it constitutes an undue
interference with the right of Roland any payment at all. Printado has also a
standing contract to enter into contracts and the impairment of his freedom to
play and enjoy basketball. Can Roland be bound by the contract he entered
into with Lady Love or can he disregard the same? Is he liable at all? How
about Sweet Taste? Is it liable to Lady Love? 

32. Period; Suspensive Period (1991 BAR) In a deed of sale of a realty, it was
stipulated that the buyer would construct a commercial building on the lot
while the seller would construct a private passageway bordering the lot.The
building was eventually finished but the seller failed to complete the
passageway as some of the squatters, who were already known to be there at
the time they entered into the contract, refused to vacate the premises. In fact,
prior to its execution, the seller filed ejectment cases against the squatters.
The buyer now sues the seller for specific performance with damages. The
defense is that the obligation to construct the passageway should be with a
period which, incidentally, had not been fixed by them, hence, the need for
fixing a judicial period. Will the action for specific performance of the buyer
against the seller prosper? 

35. Nature of Contracts; Privity of Contract (1996 BAR) Baldomero leased his
house with a telephone to Jose. The lease contract provided that Jose shall pay
for all electricity, water and telephone services in the leased premises during
the period of the lease. Six months later. Jose surreptitiously vacated the
premises. He left behind unpaid telephone bills for overseas telephone calls
amounting to over P20,000.00. Baldomero refused to pay the said bills on the
ground that Jose had already substituted him as the customer of the telephone
company. The latter maintained that Baldomero remained as his customer as
far as their service contract was concerned, notwithstanding the lease contract
between Baldomero and Jose. Who is correct, Baldomero or the telephone
company? Explain. 

Suggested Answer:

36. Rescission of Contracts; Proper Party (1996 BAR) In December 1985,

Salvador and the Star Semiconductor Company (SSC) executed a Deed of
Conditional Sale wherein the former agreed to sell his 2,000 square meter lot
in Cainta, Rizal, to the latter for the price of P1,000,000.00, payable
P100,000.00 down, and the balance 60 days after the squatters in the property
have been removed. If the squatters are not removed within six months, the
P100,000.00 down payment shall be returned by the vendor to the vendee,
Salvador filed ejectment suits against the squatters, but in spite of the
decisions in his favor, the squatters still would not leave. In August, 1986,
Salvador offered to return the P100,000.00 down payment to the vendee, on
the ground that he is unable to remove the squatters on the property. SSC
refused to accept the money and demanded that Salvador execute a deed of
absolute sale of the property in its favor, at which time it will pay the balance
of the price. Incidentally, the value of the land had doubled by that time.
Salvador consigned the P 100,000.00 in court, and filed an action for rescission
of the deed of conditional sale, plus damages. Will the action prosper? Explain.


37. Conditional Obligations; Promise (1997 BAR) In two separate documents

signed by him, Juan Valentino "obligated" himself each to Maria and to Perla,
thus - 'To Maria, my true love, I obligate myself to give you my one and only
horse when I feel like It." - and - "To Perla, my true sweetheart, I obligate
myself to pay you the P500.00 I owe you when I feel like it." Months passed but
Juan never bothered to make good his promises. Maria and Perla came to
consult you on whether or not they could recover on the basis of the foregoing
settings. What would your legal advice be? 

41. Conditional Obligations; Resolutory Condition (1999 BAR) In 1997, Manuel

bound himself to sell Eva a house and lot which is being rented by another
person, if Eva passes the 1998 bar examinations. Luckily for Eva, she passed
said examinations. (a) Suppose Manuel had sold the same house and lot to
another before Eva passed the 1998 bar examinations, is such sale valid?
Why? (b) Assuming that it is Eva who is entitled to buy said house and lot, is
she entitled to the rentals collected by Manuel before she passed the 1998 bar
examinations? Why? 

42. Conditional Obligations (2000 BAR) Pedro promised to give his grandson a
car if the latter will pass the bar examinations. When his grandson passed the
said examinations, Pedro refused to give the car on the ground that the
condition was a purely potestative one. Is he correct or not? 

49. Conditional Obligations (2003 BAR) Are the following obligations valid, why,
and if they are valid, when is the obligation demandable in each case? a) If the
debtor promises to pay as soon as he has the means to pay; b) If the debtor
promises to pay when he likes; c) If the debtor promises to pay when he
becomes a lawyer; d) If the debtor promises to pay if his son, who is sick with
cancer, does not die within one year.  (a)