Recitation problem 1
Pedro was a passenger on a bus owned by ABC company and driven by Juan.
Because Juan lacked sleep, he dozed for about 10 seconds and missed to stop at the
red light. As a result of the collision that happened, Pedro was injured.
What are the remedies of Pedro?
Discuss the advantages/disadvantages of each option.
Recitation problem 2
John, Paul, Ringo, and George obtained a loan for P4 Million from Vilma, Nora, and
Sharon. The debtors found themselves jointly and solidarily to pay the loan within one
year. The loan was secured by a real estate mortgage on the house of Ringo worth P10
Million. John’s proportionate obligation is P2.5 Million; Paul’s is P1 Million; while George
and Ringo are liable only for P250,000 each.
Before the loan matured, the house of Ringo (security of the loan) was totally destroyed
when a PAF jet crashed into it. When the debtors could no longer give another
collateral, Sharon sent demand letters to George for the payment of the entire
obligation. George ignored the demands contending that the loan is not yet due and that
Sharon has no right to compel him to pay the entire amount.
Due to the refusal of George, Vilma sued Paul and sought the court to compel him
(Paul) to pay her (Vilma) the entire obligation plus damages. While the suit was
pending, John, a master swindler, left the country for Canada, with no intentions of
coming back. In the meantime, Ringo who lost his remaining valuable asset (the house)
became insolvent.
(a) Did Sharon have a right to demand fulfillment of the obligation even before the same
became due and demandable? If yes, can she demand payment for the entire amount?
(b) Will the suit of Vilma against Paul for payment prosper? Can she really hold Paul
liable for damages because of George’s refusal to abide by the demands of Sharon?
(c) Assuming that after Sharon made the demand, George instead paid Nora the entire
obligation, thereafter Nora absconds without distributing to the others their shares, can
Paul still be held liable by Vilma and Sharon for their respective shares?
(d) Assuming George paid Vilma P4 Million, and Vilma absconds, how much can
George collect from Paul, considering that John has left the country already, and Ringo
is insolvent?
Recitation problem 3
A purchased a TV set from B on installment basis with the agreement that until the full
purchase price has been paid title remains with seller (B), but that should the set be lost
or destroyed while in the possession of the buyer (A) before the full price has been paid,
even without his fault, A shall continue to be liable for the entire balance of the purchase
price. One week after delivery of the TV set, a violent storm occurred as a result of
which A’s house and the TV set were destroyed. Is A still liable for the balance of the
purchase price?
Recitation problem 4
For valuable consideration, S obligated himself to sell to B for P20,000 a mare then
pregnant, after it has foaled, or in default thereof, to pay B a penalty. The mare died
while foaling. May B sue S for the recovery of the penalty of P10,000?
Recitation problem 5
In an employment contract whereby the employee was engaged for a period of two
years with compensation, a clause stated that should the machinery to be installed in
the factory fail for any reason to arrive in Manila within six months from date of the
contract, the agreement may be cancelled by the employer at his option, such
cancellation, however, not to occur before the expiration of said period of six months. Is
the conditional obligation valid?
Recitation problem 6
The property of the plaintiff, transported on board the steamship of the defendant
company, was unlawfully detained by the caption of said steamship, resulting in loss to
its owner. Upon being sued for damages of P8,777,000, cost of the cargo, the
defendant claimed that the amount recoverable cannot exceed the amount of freight,
under the penal clause of their charter contract, as follows: “Penalty for non-
performance of this agreement, proved damages, not exceeding the estimated amount
of freight.” Is the contention tenable?
Recitation problem 7
Andres was indebted to Bernabe in the sum of P1,000,000 secured by a real estate
mortgage. When the obligation became due and Andres failed to pay, Catolico paid
Bernabe without the knowledge of Andres.
(1) May Catolico demand from Andrew what he has paid?
(2) May Catolico compel Bernabe to subrogate him in his mortgage rights?
Recitation problem 8
The contract between plaintiff and defendant provided that the defendant had the right
to cancel the contract upon payment of the sum of P60,000. The defendant made a
formal tender of the amount and demanded cancellation of the contract. The plaintiff
contended that there should have been a consignation of the sum. Is the contention
tenable?
Recitation problem 9
Plaintiff sold to defendant an undivided on-half interest in a boat for the price of
P360,000; P100,000 of which was paid. It was stipulated that the balance of P260,000
was to be applied to the cost of installing a new motor. Under the contract, the plaintiff
and defendant became co-owners of the boat. Before the motor was purchased, the
boat was wrecked by a storm. An action was brought for recovery of the unpaid balance
of the purchase price. Defendant contended that since the installation of the motor has
become impossible, the defendant was absolved from the obligation to pay in
accordance with Article 1266 of the Civil Code. Is the contention tenable?
Recitation problem 10
B borrows a car from O. In the course of his use of the car, B parks it at the Luneta, in a
place proper for parking. The car was then smashed and completely destroyed by a
truck but for some reason neither the truck nor its owner could be identified. O sues B
for the value of the car.
(1) Decide the case in accordance with law.
(2) Then give a possible reason for a contrary conclusion.
Recitation problem 11
X sued Y to collect P200,000 plus interest and attorney’s fees. Y, in his answer,
included a counterclaim for P15,000 allegedly loaned by him to X and which was
already overdue. X moved to dismiss the counterclaim which motion was granted by the
lower court. Was the motion correctly resolved?
Recitation problem 12
The contract of lease obtained a stipulation that the lease shall be obligatory upon and
redound to the benefit not only of the persons who are the lessees but also their
assigns. The lessee firm having assigned the lease to a third person, was there a
novation by substitution of the debtor?
