1) Maria filed for annulment of her marriage to Neil claiming he is psychologically incapacitated. She presented witnesses and a psychological report in support. The judge must decide whether to grant the annulment petition.
2) A collision involved a bicyclist and taxi. Both claim the other was at fault. As the bicyclist's lawyer, you must present evidence and arguments to justify the damages he claims.
3) Sergio agreed to sell land to Marcelo by a certain date. When another buyer offered a higher price, Sergio withdrew the offer. Marcelo objects, claiming they have a binding agreement. Advise on the parties' legal positions.
1) Maria filed for annulment of her marriage to Neil claiming he is psychologically incapacitated. She presented witnesses and a psychological report in support. The judge must decide whether to grant the annulment petition.
2) A collision involved a bicyclist and taxi. Both claim the other was at fault. As the bicyclist's lawyer, you must present evidence and arguments to justify the damages he claims.
3) Sergio agreed to sell land to Marcelo by a certain date. When another buyer offered a higher price, Sergio withdrew the offer. Marcelo objects, claiming they have a binding agreement. Advise on the parties' legal positions.
1) Maria filed for annulment of her marriage to Neil claiming he is psychologically incapacitated. She presented witnesses and a psychological report in support. The judge must decide whether to grant the annulment petition.
2) A collision involved a bicyclist and taxi. Both claim the other was at fault. As the bicyclist's lawyer, you must present evidence and arguments to justify the damages he claims.
3) Sergio agreed to sell land to Marcelo by a certain date. When another buyer offered a higher price, Sergio withdrew the offer. Marcelo objects, claiming they have a binding agreement. Advise on the parties' legal positions.
1) Maria filed for annulment of her marriage to Neil claiming he is psychologically incapacitated. She presented witnesses and a psychological report in support. The judge must decide whether to grant the annulment petition.
2) A collision involved a bicyclist and taxi. Both claim the other was at fault. As the bicyclist's lawyer, you must present evidence and arguments to justify the damages he claims.
3) Sergio agreed to sell land to Marcelo by a certain date. When another buyer offered a higher price, Sergio withdrew the offer. Marcelo objects, claiming they have a binding agreement. Advise on the parties' legal positions.
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2013 Civil Law Exam Essay Questions
ON OCTOBER 21, 2013
I. You are a Family Court judge and e!ore you is a "etition !or t#e $e%laration o! &ullity o! 'arriage (under )rti%le 3* o! t#e Family Code+!iled y 'aria against &eil. 'aria %laims t#at &eil is ,sy%#ologi%ally in%a,a%itated to %om,ly wit# t#e essential oligations o! marriage e%ause &eil is a drun-ard. a womani/er. a gamler. and a mama0s oy1 traits t#at s#e never -new or saw w#en &eil was %ourting #er. )lt#oug# summoned. &eil did not answer 'aria0s ,etition and never a,,eared in %ourt. 2o su,,ort #er ,etition. 'aria ,resented t#ree witnesses1 #ersel!. $r. Elsie C#an. and )mrosia. $r. C#an testi!ied on t#e ,sy%#ologi%al re,ort on &eil t#at s#e ,re,ared. 3in%e &eil never a%-nowledged n4r res,onded to #er invitation !or interviews. #er re,ort is solely ased on #er interviews wit# 'aria and t#e s,ouses0 minor %#ildren. $r. C#an %on%luded t#at &eil is su!!ering !rom &ar%issisti% "ersonality $isorder. an ailment t#at s#e !ound to e already ,resent sin%e &eil0s early adult#ood and one t#at is grave and in%urale. 'aria testi!ied on t#e s,e%i!i% instan%es w#en s#e !ound &eil drun-. wit# anot#er woman. or s5uandering t#e !amily0s resour%es in a %asino. )mrosia. t#e s,ouses0 %urrent #ouse#old #el,. %orroorated 'aria0s testimony. 6n t#e asis o! t#e eviden%e ,resented. will you grant t#e ,etition7 (89+ II. ) %ollision o%%urred at an interse%tion involving a i%y%le and a taxi%a. :ot# t#e i%y%le rider (a usinessman t#en doing #is morning exer%ise+ and t#e taxi driver %laimed t#at t#e ot#er was at !ault. :ased on t#e ,oli%e re,ort. t#e i%y%le %rossed t#e interse%tion !irst ut t#e taxi%a. %rossing at a !ast %li, !rom t#e i%y%le0s le!t. %ould not ra-e in time and #it t#e i%y%le0s rear w#eel. to,,ling it and t#rowing t#e i%y%le rider into t#e sidewal- ; meters away. 2#e i%y%le rider su!!ered a !ra%tured rig#t -nee. sustained w#en #e !ell on #is rig#t side on t#e %on%rete side wal-. <e was #os,itali/ed and was suse5uently o,erated on. rendering #im immoile !or 3 wee-s and re5uiring ,#ysi%al re#ailitation !or anot#er 3 mont#s. In #is %om,laint !or damages. t#e rider ,rayed !or t#e award o!"1.000.000 a%tual damages."200.000 moral damages. "200.000 exem,lary damages. "1 00.000 nominal damages and ";0.000 attorney0s !ees. )ssuming t#e ,oli%e re,ort to e %orre%t and as t#e lawyer !or t#e i%y%le rider. w#at eviden%e (do%umentary and testimonial+ and legal arguments will you ,resent in %ourt to justi!y t#e damages t#at your %lient %laims7 (89+ III. 3ergio is t#e registered owner o! a ;001s5uare meter land. <is !riend. 'ar%elo. w#o #as long een interested in t#e ,ro,erty. su%%eeded in ,ersuading 3ergio to sell it to #im. 6n =une 2. 2012. t#ey agreed on t#e ,ur%#ase ,ri%e o! "*00.000 and t#at 3ergio would give 'ar%elo u, to =une30. 2012 wit#in w#i%# to raise t#e amount. 'ar%elo. in a lig#t tone usual etween t#em. said t#at t#ey s#ould seal t#eir agreement t#roug# a %ase o! =a%- $aniels :la%- and ";.000 >,ulutan? money w#i%# #e immediately #anded to 3ergio and w#i%# t#e latter a%%e,ted. 2#e !riends t#en sat down and dran- t#e !irst ottle !rom t#e %ase o! ouron. 6n =une 1;. 2013. 3ergio learned o! anot#er uyer. @oerto. w#o was o!!ering "800.000 in ready %as# !or t#e land. A#en @oerto %on!irmed t#at #e %ould ,ay in %as# as soon as 3ergio %ould get t#e do%umentation ready. 3ergio de%ided to wit#draw #is o!!er to 'ar%elo. #o,ing to just ex,lain matters to #is !riend. 'ar%elo. #owever. oje%ted w#en t#e wit#drawal was %ommuni%ated to #im. ta-ing t#e ,osition t#at t#ey #ave a !irm and inding agreement t#at 3ergio %annot sim,ly wal- away !rom e%ause #e #as an o,tion to uy t#at is duly su,,orted y a duly a%%e,ted valuale %onsideration. ()+ $oes 'ar%elo #ave a %ause o! a%tion against 3ergio7 (;9+ (:+ Can 3ergio %laim t#at w#atever t#ey mig#t #ave agreed u,on %annot e en!or%ed e%ause any agreement relating to t#e sale o! real ,ro,erty must e su,,orted y eviden%e in writing and t#ey never redu%ed t#eir agreement to writing7 (39+ IB. )nselmo is t#e registered owner o! a land and a #ouse t#at #is !riend :ooy o%%u,ied !or a nominal rental and on t#e %ondition t#at :ooy would va%ate t#e ,ro,erty on demand. Ait# )nselmo0s -nowledge. :ooy introdu%ed renovations %onsisting o! an additional edroom. a %overed veranda. and a %on%rete lo%- !en%e. at #is own ex,ense. 3use5uently. )nselmo needed t#e ,ro,erty as #is residen%e and t#us as-ed :ooy to va%ate and turn it over to #im. :ooy. des,ite an extension. !ailed to va%ate t#e ,ro,erty. !or%ing )nselmo to send #im a written demand to va%ate. In #is own written re,ly. :ooy signi!ied t#at #e was ready to leave ut )nselmo must !irst reimurse #im t#e value o! t#e im,rovements #e introdu%ed on t#e ,ro,erty as #e is a uilder in good !ait#. )nselmo re!used. insisting t#at :ooy %annot as- !or reimursement as #e is a mere lessee. :ooy res,onded y removing t#e im,rovements and leaving t#e uilding in its original state. ()+ @esolve :ooy0s %laim t#at as a uilder in good !ait#. #e s#ould e reimursed t#e value o! t#e im,rovements #e introdu%ed. (C9+ (:+ Can :ooy e #eld liale !or damages !or removing t#e im,rovements over )nselmo0s oje%tion7 (C9+ B. =ose!a exe%uted a deed o! donation %overing a one1#e%tare ri%e land in !avor o! #er daug#ter. =enni!er. 2#e deed s,e%i!i%ally ,rovides t#atD For and in consideration of he love and service Jennifer has shown and given to me, I hereby freely, voluntarily and irrevocably donate to her my one-hectare rice land covered by TCT No. !!", located in #an Fernando, $am%anga. This donation shall ta&e effect u%on my death.' 2#e deed also %ontained =enni!er0s signed a%%e,tan%e. and an atta%#ed notari/ed de%laration y =ose!a and =enni!er t#at t#e land will remain in =ose!a0s ,ossession and %annot e alienated. en%umered. sold or dis,osed o! w#ile =ose!a is still alive. )dvise =enni!er on w#et#er t#e deed is a donation inter vivos or mortis %ausa and ex,lain t#e reasons su,,orting your advi%e. (89+ BI. Lito otained a loan o! "1.000.000 !rom Ferdie. ,ayale wit#in one year. 2o se%ure ,ayment. Lito exe%uted a %#attel mortgage on a 2oyota )van/a and a real estate mortgage on a 2001s5uare meter ,ie%e o! ,ro,erty. ()+ Aould it e legally signi!i%ant E !rom t#e ,oint o! view o! validity and en!or%eaility E i! t#e loan and t#e mortgages were in ,uli% or ,rivate instruments7 (*9+ (:+ Lito0s !ailure to ,ay led to t#e extra1judi%ial !ore%losure o! t#e mortgaged real ,ro,erty. Ait#in a year !rom !ore%losure. Lito tendered a manager0s %#e%- to Ferdie to redeem t#e ,ro,erty. Ferdie re!used to a%%e,t ,ayment on t#e ground t#at #e wanted ,ayment in %as#D t#e %#e%- does not 5uali!y as legal tender and does not in%lude t#e interest ,ayment. Is Ferdie0s re!usal justi!ied7 (C9+ BII. In 200;. )ndres uilt a residential #ouse on a lot w#ose only a%%ess to t#e national #ig#way was a ,at#way %rossing :rando0s ,ro,erty. )ndres and ot#ers #ave een using t#is ,at#way (,at#way )+ sin%e 1480. In 200*. :rand0 !en%ed o!! #is ,ro,erty. t#erey lo%-ing )ndres0 a%%ess to t#e national #ig#way. )ndres demanded t#at ,art o! t#e !en%e e removed to maintain #is old a%%ess route to t#e #ig#way (,at#way )+. ut :rando re!used. %laiming t#at t#ere was anot#er availale ,at#way (,at#way :+ !or ingress and egress to t#e #ig#way. )ndres %ountered t#at ,at#way : #as de!e%ts. is %ir%uitous. and is extremely in%onvenient to use. 2o settle t#eir dis,ute. )ndres and :rando #ired $amian. a geodeti% and %ivil engineer. to survey and examine t#e two ,at#ways and t#e surrounding areas. and to determine t#e s#ortest and t#e least ,rejudi%ial way t#roug# t#e servient estates. )!ter t#e survey. t#e engineer %on%luded t#at ,at#way : is t#e longer route and will need im,rovements and re,airs. ut will not signi!i%antly a!!e%t t#e use o! :rando0s ,ro,erty. 6n t#e ot#er #and. ,at#way ) t#at #ad long een in ,la%e. is t#e s#orter route ut would signi!i%antly a!!e%t t#e use o! :rando0s ,ro,erty. In lig#t o! t#e engineer0s !indings and t#e %ir%umstan%es o! t#e %ase. resolve t#e ,arties0 rig#t o! way dis,ute. (*9+ BIII. Ciria%o @ealty Cor,oration (C@C+ sold to t#e s,ouses $el a Cru/ a;001s5uare meter land (Lot )+ in "arana5ue. 2#e land now #as a !air mar-et value o! "l.200.000. C@C li-ewise sold to t#e s,ouses @odrigue/. a F001s5uare meter land (Lot :+ w#i%# is adja%ent to Lot ). Lot : #as a ,resent !air mar-et value o! "1.;00.000. 2#e s,ouses $ela Cru/ %onstru%ted a #ouse on Lot :. relying on t#ere ,resentation o! t#e C@C sales agent t#at it is t#e ,ro,erty t#ey ,ur%#ased. 6nly u,on t#e %om,letion o! t#eir #ouse did t#e s,ouses $ela Cru/ dis%over t#at t#ey #ad uilt on Lot : owned y t#e s,ouses @odrigue/. not on Lot ) t#at t#ey ,ur%#ased. 2#ey s,ent " 1 000.000 !or t#e #ouse. )s t#eir lawyer. advise t#e s,ouses $ela Cru/ on t#eir rig#ts and oligations under t#e given %ir%umstan%es. and t#e re%ourses and o,tions o,en to t#em to ,rote%t t#eir interests. (89+ IG. @i%a ,etitioned !or t#e annulment o! #er ten1year old marriage to @i%#ard. @i%#ard #ired )tty. Cru/ to re,resent #im in t#e ,ro%eedings. In ,ayment !or )tty. Cru/0s a%%e,tan%e and legal !ees. @i%#ard %onveyed to )tty. Cru/ a ,ar%el o! land in 2aguig t#at #e re%ently ,ur%#ased wit# #is lotto winnings. 2#e trans!er do%uments were duly signed and )tty. Cru/ immediately too- ,ossession y !en%ing o!! t#e ,ro,erty0s entire ,erimeter. $es,erately needing money to ,ay !or #is mounting legal !ees and #is ot#er needs and des,ite t#e trans!er to )tty. Cru/. @i%#ard o!!ered t#e same ,ar%el o! land !or sale to t#e s,ouses Har%ia. )!ter ins,e%tion o! t#e land. t#e s,ouses %onsidered it a good investment and ,ur%#ased it !rom @i%#ard. Immediately a!ter t#e sale. t#e s,ouses Har%ia %ommen%ed t#e %onstru%tion o! a t#ree1story uilding over t#e land. ut t#ey were ,revented !rom doing t#is y )tty. Cru/ w#o %laimed #e #as a etter rig#t in lig#t o! t#e ,rior %onveyan%e in #is !avor. Is )tty. Cru/0s %laim %orre%t7 (89+ G. 'anuel was orn on 12 'ar%# 14C0 in a 1 0001s5uare meter ,ro,erty w#ere #e grew u, #el,ing #is !at#er. 'i%#ael. %ultivate t#e land. 'i%#ael #as lived on t#e ,ro,erty sin%e t#e land was o,ened !or settlement at aout t#e time o! t#e Commonwealt# government in 143 ;. ut !or some reason never se%ured any title to t#e ,ro,erty ot#er t#an a tax de%laration in #is name. <e #as #eld t#e ,ro,erty t#roug# t#e years in t#e %on%e,t o! an owner and #is stay was un%ontested y ot#ers. <e #as also %ons%ientiously and %ontinuously ,aid t#e realty taxes on t#e land. 'i%#ael died in 2000 and 'anuel E as 'i%#ael0s only son and #eir 1now wants to se%ure and register title to t#e land in #is own name. <e %onsults you !or legal advi%e as #e wants to ,er!e%t #is title to t#e land and se%ure its registration in #is name. ()+ A#at are t#e laws t#at you need to %onsider in advising 'anuel on #ow #e %an ,er!e%t #is title and register t#e land in #is name7 Ex,lain t#e relevan%e o! t#ese laws to your ,roje%ted %ourse o! a%tion. (C9+ (:+ A#at do you #ave to ,rove to se%ure 'anuel0s oje%tives and w#at do%umentation are ne%essary7 (C9+ 2013 Civil Law Exam 'CQs ON OCTOBER 21, 2013 I:elow are t#e 'ulti,le C#oi%e Questions as-ed in t#e 2013 :ar Exams in Laor Law. )nswers are #ig#lig#ted.J 1. Armand died intestate. His full-blood brothers, Bobby and Conrad, and half-blood brothers, Danny, Edward and Floro, all predeceased him. he followin! are the sur"i"in! relati"es# 1. Benny and Bonnie, le!itimate children of Bobby$ %. Cesar, le!itimate child of Conrad$ &. Dante, ille!itimate child of Danny$ '. Ernie, adopted child of Edward$ and (. Feli), !randson of Floro. he net "alue of Armand*s estate is +1,%,,,,,,. 1.a. How much do Benny and Bonnie stand to inherit by ri!ht of representation- .1/0 ()+ "200.000 (:+ "300.000 (C+ "C00.000 ($+ "1;0.000 (E+ &one o! t#e aove. 1.b. How much is Dante*s share in the net estate- .1/0 ()+ "1;0.000. (:+ "200.000. (C+ "300.000. ($+ "C00.000. (E+ &one o! t#e aove. 1.c. How much is Ernie*s share in the net estate . .1/0 ()+ " 0. (:+ "C00.000. (C+ "1;0.000. ($+ "200.000. (E+ &one o! t#e aove. 1.d. How much is Feli)*s share in the net estate- .1/0 ()+ "C00.000. (:+ "1;0.000. (C+ "300.000. ($+ "0 (E+ &one o! t#e aove. %. A, B, C and D are the solidary debtors of 1 for +',,,,,. 1 released D from the payment of his share of +2 ,,,,,. 3hen the obli!ation became due and demandable, C turned out to be insol"ent. 4hould the share of insol"ent debtor C be di"ided only between the two other remainin! debtors, A and B- .1/0 ()+ Yes. @emission o! $0s s#are %arries wit# it total extinguis#ment o! #is oligation to t#e ene!it o! t#e solidary detors. (:+ Yes. 2#e Civil Code re%ogni/es remission as a mode o! extinguis#ing an oligation. 2#is %learly a,,lies to $. (C+ &o. 2#e rule is t#at gratuitous a%ts s#ould e restri%tively %onstrued. allowing only t#e least transmission o! rig#ts. ($+ &o. as t#e release o! t#e s#are o! one detor would t#en in%rease t#e urden o! t#e ot#er detors wit#out t#eir %onsent. &. Amador obtained a loan of +&,,,,,, from Basilio payable on 5arch%(, %,1%. As security for the payment of his loan, Amador constituted a mort!a!e on his residential house and lot in Basilio*s fa"or. Cacho, a !ood friend of Amador, !uaranteed and obli!ated himself to pay Basilio, in case Amador fails to pay his loan at maturity. &.a. 2f Amador fails to pay Basilio his loan on 5arch %(, %,1%, can Basilio compel Cacho to pay- .1/0 ()+ &o. :asilio %annot %om,el Ca%#o to ,ay e%ause as guarantor. Ca%#o %an invo-e t#e ,rin%i,le o! ex%ussion. i.e.. all t#e assets o! :asilio must !irst e ex#austed. (:+ &o. :asilio %annot %om,el Ca%#o to ,ay e%ause :asilio #as not ex#austed t#e availale remedies against )mador. (C+ Yes. :asilio %an %om,el Ca%#o to ,ay e%ause t#e nature o! Ca%#o0s underta-ing indi%ates t#at #e #as ound #imsel! solidarily wit# )mador. ($+ Yes. :asilio %an %om,el Ca%#o w#o ound #imsel! to un%onditionally ,ay in %ase )mador !ails to ,ayK t#us t#e ene!it o! ex%ussion will not a,,ly. &.b. 2f Amador sells his residential house and lot to Die!o, can Basilio foreclose the real estate mort!a!e- .1/0 ()+ Yes. :asilio %an !ore%lose t#e real estate mortgage e%ause real estate mortgage %reates a real rig#t t#at atta%#es to t#e ,ro,erty. (:+ Yes. :asilio %an !ore%lose t#e real estate mortgage. It is inding u,on $iego as t#e mortgage is emodied in a ,uli% instrument. (C+ &o. :asilio %annot !ore%lose t#e real estate mortgage. 2#e sale %on!ers owners#i, on t#e uyer. $iego. w#o must t#ere!ore %onsent. ($+ &o. :asilio %annot !ore%lose t#e real estate mortgage. 2o de,rive t#e new owner o! owners#i, and ,ossession is unjustand ine5uitale. '. Cru6 lent 7ose his car until 7ose finished his Bar e)ams. 4oon after Cru6 deli"ered the car, 7ose brou!ht it to 5itsubishi Cubao for maintenance chec8 up and incurred costs of +9,,,,. 4eein! the car*s peelin! and faded paint, 7ose also had the car repainted for +1,,,,,. Answer the two :uestions below based on these common facts. '.a. After the bar e)ams, Cru6 as8ed for the return of his car. 7ose said he would return it as soon as Cru6 has reimbursed him for the car maintenance and repaintin! costs of + 19,,,,. 2s 7ose*s refusal ;ustified- .1/0 ()+ &o. =ose0s re!usal is not justi!ied. In t#is -ind o! %ontra%t. =ose is oliged to ,ay !or all t#e ex,enses in%urred !or t#e ,reservation o! t#e t#ing loaned. (:+ Yes. =ose0s re!usal is justi!ied. <e is oliged to ,ay !orall t#e ordinary and extraordinary ex,enses. ut suje%t to reimursement !rom Cru/. (C+ Yes. =ose0s re!usal is justi!ied. 2#e ,rin%i,le o! unjust enri%#ment warrants t#e reimursement o! =ose0s ex,enses. ($+ &o. =ose0s re!usal is not justi!ied. 2#e ex,enses #e in%urred are use!ul !or t#e ,reservation o! t#e t#ing loaned. It is =ose0s oligation to s#oulder t#ese use!ul ex,enses. '.b. Durin! the bar e)am month, 7ose lent the car to his !irlfriend, 7olie, who par8ed the car at the 5all of Asia*s open par8in! lot, with the i!nition 8ey inside the car. Car thie"es bro8e into and too8 the car. 2s 7ose liable to Cru6 for the loss of the car due to 7olie*s ne!li!ence- .1/0 ()+ &o. =ose is not liale to Cru/ as t#e loss was not due to #is !ault or negligen%e. (:+ &o. =ose is not liale to Cru/. In t#e asen%e o! any ,ro#iition. =ose %ould lend t#e %ar to =olie. 3in%e t#e loss was due to !or%e majeure. neit#er =ose nor =olie is liale. (C+ Yes. =ose is liale to Cru/. 3in%e =ose lent t#e %ar to =olie wit#out Cru/0s %onsent. =ose must ear t#e %onse5uent loss o! t#e %ar. ($+ Yes. =ose is liale to Cru/. 2#e %ontra%t etween t#em is ,ersonal in nature. =ose %an neit#er lend nor lease t#e %ar to a t#ird ,erson. (. 2n %,,(, <, 5, =, , and + formed a partnership. <, 5 and = were capitalist partners who contributed +(,,,,,, each, while ,, a limited partner, contributed +1 ,,,,,,,,. + ;oined as an industrial partner, contributin! only his ser"ices. he Articles of +artnership, re!istered with the 4ecurities and E)chan!e Commission, desi!nated < and , as mana!in! partners$ < was liable only to the e)tent of his capital contribution$ and + was not liable for losses. 2n %,,>, the partnership earned a net profit of +9,,,,,,. 2n the same year, + en!a!ed in a different business with the consent of all the partners. Howe"er, in %,,?, the partnership incurred a net loss of +(,,,,,,. 2n %,,9,the partners dissol"ed the partnership. he proceeds of the sale of partnership assets were insufficient to settle its obli!ation. After li:uidation, the partnership had an unpaid liability of+&,,,,,,. (.a. Assumin! that the ;ust and e:uitable share of the industrial partner, +, in the profit in %,,> amounted to +1 ,,,,,,, how much is the share of ,, a limited partner, in the +9,,,,,, net profit- .1/0 ()+ "1*0.000. (:+ "1F;.000. (C+ "280.000. ($+ "200.000. (E+ &one o! t#e aove. (.b. 2n %,,?, how much is the share of ,, a limited partner, in the net loss of +(,,,,,,- .1/0 ()+ " 0. (:+ "1 00.000. (C+ "12;.000. ($+ "200.000. (E+ &one o! t#e aove. (.c. Can the partnership creditors hold <, , and +liable after all the assets of the partnership are e)hausted- .1/0 ()+ Yes. 2#e sti,ulation exem,ting " !rom losses is valid only among t#e ,artners. L is liale e%ause t#e agreement limiting #is liaility to #is %a,ital %ontriution is not valid inso!ar as t#e %reditors are %on%erned. <aving ta-en ,art in t#e management o! t#e ,artners#i,. 0 is liale as %a,italist ,artner. (:+ &o. " is not liale e%ause t#ere is a valid sti,ulation exem,ting #im !rom losses. 3in%e t#e ot#er ,artners allowed #im to engage in an outside usiness a%tivity. t#e sti,ulation asolving " !rom liaility is valid. For 0. it is asi% t#at a limited ,artner is liale only u, to t#e extent o! #is %a,ital %ontriution. (C+ Yes. 2#e sti,ulations exem,ting " and L !rom losses are not inding u,on t#e %reditors. 0 is li-ewise liale e%ause t#e ,artners#i, was not !ormed in a%%ordan%e wit# t#e re5uirements o! a limited ,artners#i,. ($+ &o. 2#e Civil Code allows t#e ,artners to sti,ulate t#at a ,artner s#all not e liale !or losses. 2#e registration o! t#e )rti%les o! "artners#i, emodying su%# sti,ulations serves as %onstru%tive noti%e to t#e ,artners#i, %reditors.(E+ &one o! t#e aove is %om,letely a%%urate. >. @ary is a tobacco trader and also a lendin! in"estor. He sold tobacco lea"es to Homer for deli"ery within a month, althou!h the period for deli"ery was not !uaranteed. Despite @ary*s efforts to deli"er on time, transportation problems and !o"ernment red tape hindered his efforts and he could only deli"er after &, days. Homer refused to accept the late deli"ery and to pay on the !round that the a!reed term had not been complied with. As lendin! in"estor, @ary !ranted a +l,,,,,,,, loan to 2saac to be paid within two years from e)ecution of the contract. As security for the loan, 2saac promised to deli"er to @ary his oyota 2nno"a within se"en .?0 days, but 2saac failed to do so. @ary was thus compelled to demand payment for the loan before the end of the a!reed two-year term. >.a. 3as Homer ;ustified in refusin! to accept the tobacco lea"es- .1/0 ()+ Yes. <omer was justi!ied in re!using to a%%e,t t#e toa%%o leaves. 2#e delivery was to e made wit#in a mont#. Hary0s ,romise o! delivery on a >est e!!ort? asis made t#e delivery un%ertain. 2#e term. t#ere!ore. was amiguous. (:+ &o. <omer was not justi!ied in re!using to a%%e,t t#e toa%%o leaves. <e %onsented to t#e terms and %onditions o! t#e sale and must aide y it. 6ligations arising !rom %ontra%t #ave t#e !or%e o! law etween t#e %ontra%ting ,arties. (C+ Yes. <omer was justi!ied in #is re!usal to a%%e,t t#e delivery. 2#e %ontra%t %ontem,lates an oligation wit# a term. 3in%e t#e delivery was made a!ter 30 days. %ontrary to t#e terms agreed u,on. Hary %ould not insist t#at <omer a%%e,t t#e toa%%o leaves. ($+ &o. <omer was not justi!ied in re!using to a%%e,t t#e toa%%o leaves. 2#ere was no term in t#e %ontra%t ut a mixed %ondition. 2#e !ul!illment o! t#e %ondition did not de,end ,urely on Hary0s will ut on ot#er !a%tors. e.g.. t#e s#i,,ing %om,any and t#e government. <omer s#ould %om,ly wit# #is oligation. >.b. Can @ary compel 2saac to pay his loan e"en before the end of the two-year period- .1/0 ()+ Yes. Hary %an %om,el Isaa% to immediately ,ay t#e loan. &on1%om,lian%e wit# t#e ,romised guaranty or se%urity renders t#e oligation immediately demandale. Isaa% lost #is rig#t to ma-e use o! t#e ,eriod. (:+ Yes. Hary %an %om,el Isaa% to immediately ,ay t#e loan. 2#e delivery o! t#e 2oyota Innova is a %ondition !or t#e loan. Isaa%0s !ailure to deliver t#e %ar violated t#e %ondition u,on w#i%# t#e loan was granted. It is ut !air !or Hary to demand immediate ,ayment. (C+ &o. Hary %annot %om,el Isaa% to immediately ,ay t#e loan. 2#e delivery o! t#e %ar as se%urity !or t#e loan is an a%%essory %ontra%tK t#e ,rin%i,al %ontra%t is still t#e " 1.000.000 loan. 2#us. Isaa% %an still ma-e use o! t#e ,eriod. ($+ &o. Hary %annot %om,el Isaa% to immediately ,ay t#e loan. E5uity di%tates t#at Hary s#ould #ave granted a reasonale extension o! time !or Isaa% to deliver #is 2oyota Innova. It would e un!air and urdensome !or Isaa% to ,ay t#e "1.000.000 sim,ly e%ause t#e ,romised se%urity was not delivered. ?. <ito was a commercial pilot who flew for +acific-5icronesian Air. 2n 1AA9, he was the co-pilot of the airline*s Fli!ht 5AA1> that mysteriously disappeared two hours after ta8e-off from A!ana, @uam, presumably o"er the +acific Bcean. =o trace of the plane and its 1,( passen!ers and crew was e"er found despite dili!ent search$ <ito himself was ne"er heard of a!ain. <ito left behind his wife, <ita, and their two children. 2n %,,9, <ita met and and married 7aime. hey now ha"e a child of their own. 3hile on a tour with her former hi!h school classmates in a remote pro"ince of China in %,1,, <ita was surprised to see <ito or somebody who loo8ed e)actly li8e him, but she was sure it was <ito because of the e)treme surprise that re!istered in his face when he also saw her. 4hoc8ed, she immediately fled to her hotel and post haste returned to the country the ne)t day. <ita now comes to you for le!al ad"ice. 4he as8s you the followin! :uestions# ?.a. 2f <ito is ali"e, what is the status of his marria!e to <ita- .1/0 ()+ 2#e marriage susists e%ause t#e marital ond #as not een terminated y deat#. (:+ 2#e marriage was terminated w#en Lita married =aime. (C+ 2#e marriage susists e%ause Lita0s marriage to =aime is void. ($+ 2#e marriage is terminated e%ause Lito is ,resumed dead a!ter #is ,lane #as een missing !or more t#an C years. (E+ 2#e marriage %an e !ormally de%lared terminated i! Lito would not resur!a%e. ?.b. 2f <ito is ali"e, what is the status of <ita*s marria!e to 7aime- .1/0 ()+ 2#e marriage is valid e%ause Lita0s marriage to Lito was terminated u,on Lito0s disa,,earan%e !or more t#an seven years. (:+ 2#e marriage is valid. )!ter an asen%e o! more t#an 10 years. Lito is already ,resumed dead !or all ,ur,oses. (C+ 2#e marriage is void. Lito0s mere asen%e. #owever lengt#y. is insu!!i%ient to aut#ori/e Lita to %ontra%t a suse5uent marriage. ($+ 2#e marriage is void. I! Lito is indeed alive. #is marriage to Lita was never dissolved and t#ey %an resume t#eir marital relations at any time. 9. 3hich of the followin! actions or defenses are meritorious# .1/0 ()+ )n a%tion !or re%overy o! down,ayment ,aid under a res%inded oral sale o! real ,ro,erty. (:+ ) de!ense in an a%tion !or eje%tment t#at t#e lessor verally ,romised to extend or renew t#e lease. (C+ )n a%tion !or ,ayment o! sum o! money !iled against one w#o orally ,romised to answer anot#er0s det in %ase t#e latter de!aults. ($+ ) de!ense in an a%tion !or damages t#at t#e detor #as su!!i%ient. ut unli5uidated assets to satis!y t#e %redit a%5uired w#en it e%omes due. (E+ &one o! t#e aove. A. Betty entrusted to her a!ent, Aida, se"eral pieces of ;ewelry to be sold on commission with the e)press obli!ation to turn o"er to Betty the proceeds of the sale, or to return the ;ewelries if not sold in a month*s time. 2nstead of sellin! the ;ewelries, Aida pawned them with the ambuntin! +awnshop, and used the money for herself. Aida failed to redeem the pawned ;ewelries and after a month, Betty disco"ered what Aida had done. Betty brou!ht criminal char!es which resulted in Aida*s con"iction for estafa. Betty thereafter filed an action a!ainst ambuntin! +awnshop for the reco"ery of the ;ewelries. ambuntin! raised the defense of ownership, additionally ar!uin! that it is duly licensed to en!a!e in the pawnshop and lendin! business, and that it accepted the mort!a!e of the ;ewelry in !ood faith and in the re!ular course of its business. 2f you were the ;ud!e, how will you decide the case- .1/0 ()+ I will rule in !avor o! :etty. 'y ruling is ased on t#e Civil Code ,rovision t#at one w#o #as lost any movale or #as een unlaw!ully de,rived t#ereo! may re%over it !rom t#e ,erson in ,ossession o! t#e same. 2am unting0s %laim o! good !ait# is in%onse5uential. (:+ I will rule in !avor o! :etty. 2amunting0s %laim o! good !ait# ,ales into insigni!i%an%e in lig#t o! t#e unlaw!ul de,rivation o! t#e jewelries. <owever. e5uity di%tates t#at 2amunting must e reimursed !or t#e ,awn value o! t#e jewelries. (C+ I will rule in !avor o! 2amunting. Its good !ait# ta-es ,re%eden%e over t#e rig#t o! :etty to re%over t#e jewelries. ($+ I will rule in !avor o! 2amunting. Hood !ait# is always ,resumed. 2amunting0s law!ul a%5uisition in t#e ordinary %ourse o! usiness %ou,led wit# good !ait# gives it legal rig#t over t#e jewelries. 1,. Arlene owns a row of apartment houses in Camunin!, Due6on City. 4he a!reed to lease Apartment =o. 1 to 7anet for a period of 19 months at the rate of +1,,,,, per month. he lease was not co"ered by any contract. 7anet promptly !a"e Arlene two .%0 months deposit and 19 chec8s co"erin! the rental payment for 19 months. his show of !ood faith prompted Arlene to promise 7anet that should Arlene decide to sell the property, she would !i"e 7anet the ri!ht of first refusal. 1,.a. =ot lon! after 7anet mo"ed in, she recei"ed news that her application for a 5aster of <aws scholarship at Cin!*s Colle!e in <ondon had been appro"ed. 4ince her acceptance of the scholarship entailed a transfer of residence, 7anet as8ed Arlene to return the ad"ance rental payments she made. Arlene refused, promptin! 7anet to file an action to reco"er the payments. Arlene filed a motion to dismiss, claimin! that the lease on which the action is based, is unenforceable. 2f you were the ;ud!e, would you !rant Arlene*s motion- .1/0 ()+ Yes. I will grant t#e motion e%ause t#e lease %ontra%t etween )rlene and =anet was not in writing. #en%e. =anet may not en!or%e any rig#t arising !rom t#e same %ontra%t. (:+ &o. I will not grant t#e motion e%ause to allow )rlene to retain t#e advan%e ,ayments would amount to unjust enri%#ment. (C+ Yes. I will grant t#e motion e%ause t#e a%tion !or re%overy is ,rematureK =anet s#ould !irst se%ure a judi%ial res%ission o! t#e %ontra%t o! lease. ($+ &o. I will not grant t#e motion e%ause t#e %ause o! a%tion does not see- to en!or%e any rig#t under t#e %ontra%t o! lease. 1,.b. Assume that 7anet decided not to accept the scholarship and continued leasin! Apartment =o. 1. 5idway throu!h the lease period, Arlene decided to sell Apartment =o. 1 to 7un in breach of her promise to 7anet to !rant her the ri!ht of first refusal. hus, 7anet filed an action see8in! the reco!nition of her ri!ht of first refusal, the payment of dama!es for the "iolation of this ri!ht, and the rescission of the sale between Arlene and 7un. 2s 7anet*s action meritorious- .1/0 ()+ Yes. under t#e Civil Code. a ,romise to uy and sell a determinate t#ing is re%i,ro%ally demandale. (:+ &o. t#e ,romise to uy and sell a determinate t#ing was not su,,orted y a %onsideration. (C+ Yes. =anet0s rig#t o! !irst re!usal was %learly violated w#en t#e ,ro,erty was not o!!ered !or sale to #er e!ore it was sold to =un. ($+ &o. a rig#t o! !irst re!usal involves an interest over real ,ro,erty t#at must e emodied in a written %ontra%t to e en!or%eale. (E+ &one o! t#e aove.