For questions asking you to solve a hypothetical problem,
answer in a paragraph form using this format:
First Sentence: Categorical Answer (Yes/No/It depends)
Second Sentence: Legal Basis (Under the Civil Code xxx)
Third Sentence: Analysis (In the case at bar xxx)
Fourth Sentence: Conclusion (Therefore xxx)
Eg. Mr. A is a minor who contracted a contract of sale with Mr. X, an
insane and demented person. Mr. A, later on, demanded the
performance of the obligations of Mr. X in the contract. Mr. X’s ward
refused the demand of Mr. A. Can Mr. A enforce the performance of
the contract?
Answer: No. Under the Civil Code, contracts entered into between two
incapacitated persons is an unenforceable contracts. In the case at
the bar, the contract is entered into between a minor and an insane
and demented person. Therefore, both parties are incapacitated.
Hence, the contract is unenforceable.
Quiz on Contracts
1. Explain the principle of relativity of contracts. Are there any
exceptions to the relativity principle? What are these, if any?
2. Mr. A and Mr. B entered into a contract whereby Mr. B, a dealer
of alcoholic beverages, promises to deliver, for a certain
consideration, 100 cases of beer to Mr.A’s sari-sari store in time
for Town Fiesta. Mr. C, another sari-sari store owner, upon
knowing the contract thereafter convinces Mr. B to instead
affect delivery on him rather than to Mr. A and paid twice the
amount. Is Mr. C liable for contractual interference?
3. A contract says “First contracting party hereby bounds himself
to sell his house and lot to the second contracting party”. The
second contracting party now claims the contract is void
because of the absence of cause. Is the second contracting party
correct?
4. An offer was made by Mr. X to Mr. Y through registered mail for
the purchase of Y’s car. Contained in the mail were the contact
details of Mr. X. Mr. Y, residing in Baguio City emailed his reply
accepting the offer of Mr. X in all respects. Mr. X however
thereafter decided to withdraw the offer. Mr. X claims that no
contract has yet been perfected. He claims that he hadn’t read
yet the acceptance as he forgot his email password and that the
acceptance is not in proper form. Is Mr. X correct?
5. Mr. D is a dealer of pieces of jewelry. Mr. E is looking for a
diamond ring to be used as an engagement ring as he is
planning to propose to his girlfriend he is dating for 10 years.
Mr. D and Mr. E thereafter entered into a contract of sale
involving a diamond ring. At the time of delivery, Mr. D
purposely and with intent swapped the diamond ring with a ring
with shiny stone with no value. Upon discovery, Mr. E asked for
your help with legal remedies. What course of action/s would
you advise him?
6. Will a case of mistaken identity result in vitiated consent?
Explain.
7. On November 21, 2014, Mr. G, guardian of Mr. M who is 16
years old, entered into a contract of sale with Mr. F involving a
house and lot owned by Mr. M. The lot was sold for an
inadequate value. In 2019, Mr. M is now seeking your advice.
What legal remedy/ies shall he avail?
8. On November 21, 2014, Mr. M, who is 16 years old, entered into
a contract of sale with Mr. F involving a house and lot owned by
him and to be paid in installments payable at the end of each
year for 5 years. The lot was sold for an inadequate value. At
the start of 2019 and before receiving the last installment, Mr.
M is now seeking your advice. Can Mr. M recover the house and
lot?
9. Mr. Right, on bended knees, asked the hand of Ms. Beauty for
marriage. Ms. Beauty says yes. Four hours later Mr. Right has
a change of heart. He no longer wished to continue with the
marriage. Ms. Beauty, with a broken heart and eyes sore from
crying, sued for specific performance claiming a contract has
been perfected between her and Mr. Right. Mr. Right, however,
claims that the contract is unenforceable as it falls under the
Statute of Frauds. Rule on both parties’ contentions. Which of
them is correct? Can Ms. Beauty demand the performance of
the contract?
10. Mr. A is an agent of Mr. P. The contract of agency says
“The agent is given full authority to sell the house and lot owned
by the principal for an amount not lower than P1 million”. Mr.
A sold the property to Mr. B for P950,000. Mr. B now is asking
Mr. P to transfer the title of the house and lot. Mr. P is now
asking for your advice. Can he refuse the demand of Mr. B?
