Case Analysis on Homework 3

Dela Rea, Kimmi F.

Mapua Institute of Technology
School of Electrical, Electronics and Computer Engineering
Muralla St. Intramuros, Manila
kdelarea32@yahoo.com

This paper is a Case Analysis on Homework 3. The

problem are in the following:
Problem 1
Solidary debtors B and D owe solidary creditors A
and C 20,000 at 10% interest per on annum on original
principal. D paid C 5,000 after one year and B paid A
15,000 after six months. D paid all the remaining if any to
A after 3 months from previous payment. How much was
the last payment, explain in detail how much for principal
and how much for interest. Explain also the rights and
obligations of all parties after the last payment. Cite
relevant articles.
Problem 2
A obligated himself to deliver to B 75 pigs and to
C 25 pigs. B in turn is obligated to deliver to A 75 pigs. It
costs 10% more to deliver a pig to A than to B or C,
delivery to B costs P1000 per pig. These is confusion and
merger between the persons of B and C. Detail or list all
possible delivery options or alternatives to completely
extinguished all obligations. Explain each.
Problem 3
Explain completely and clearly in your own words
the similarities and differences between these contract
types: valid, voidable, non-existent, unenforceable,
reccissible remediable, and simulated. Provide clear, short
and simple examples. Then summarize in table format the
comparison by identifying and differentiating key
elements.
ARTICLES RELATED ON THE PROBLEMS
Article 1207
The concurrence of two or more creditors or of two
or more debtors in one and the same obligation does not imply
that each one of the former has a right to demand, or that each
one of the latter is bound to render, entire compliance with the
prestation. There is a solidary liability only when the
obligation expressly so states, or when the law or the nature of
the obligation requires solidarity.

ANSWERS TO PROBLEMS
Problem 1 Answer
Since the obligation was Solidary obligation where
each one of the debtors is bound to render, and /or each one of
the creditors has a right to demand from any of the debtors,
entire compliance with prestation. From article 1207, the
obligation expressly so states and the nature of the obligation
requires solidarity.
So after every year there will an additional 2,000 to
the debt which is 10% of 20,000. If we divide 2,000 by 12 for
the 12 months of a year it would be 167 per month.
Calculating the payments, the total period would be 1 year and
9 months. The total debt would be 23500. Subtracting all
payments made, the remaining payment that D made will be
3500. After the payment has been completed, the obligation is
extinguished.
Problem 2 Answer
Even if there is confusion and merger between B and
C, the obligation is not extinguished. Here are the options for
payments
of
each
person:
(1) A can ask B to pay 25 pigs to C to complete
As responsibility to C. This is possible since B is
obligated to pay 75 pigs to A. It would also be
cheaper for B and because he would deliver 50 pigs
to A and 25 pigs to C.
(2) Since A and B would be delivering the same amount
of pigs B could ask A or vice versa to consider the obligation
fulfilled, since it was as if they were only trading pigs. If A or
B agrees it would be less of work and there would be no
expenses for delivery. Then A would only have an obligation
to C.

Voidable

Unenforc
e
able

Rescissib
le

Can involve a
third party

Voidable or
annullable
Liabilities and
damages

Valid

Enforceable by

Ex. A sells his house to B, orally. Without any written

contract, it would be unenforceable because the Statute of
Frauds requires such an agreement to be in writing.
Rescissible
-A contract which caused insolvency to either to one
of the parties or to a third person and which may be set aside
even if valid.

Injured Party

Voidable
-An agreement which is enforceable by law at the
option of one or more of the parties, there to but not at the
option of the other or others. Voidable contract may feature
fraud, coercion, misrepresentation and undue influence.
Ex. A says to B, that he should sell his new bungalow
to him at a nominal price otherwise, he will damage his
property and Y enters into a contract due to fear. This contract
is voidable because B was in coercion forcing B to sell the
bungalow to A by threat.
Non-existent
-A contract which an agreement to something is not
available or non-existent at the time the contract was entered
into.
Ex. A sells his house to B, B agrees to buy the house.
Before the agreement was made, A didnt know that the house
was burned the day before the contract was settled. B bought a
house that is non-existent.
Unenforceable
- A contract that has all the elements of a valid
contract, yet neither party can sue the other to force
performance of it.

Contract
Type

4 Main Requisites

Problem 3 Answer
Valid
- All parties are in agreement. It is enforceable at law.
It creates legal obligation between the parties.
Ex. A proposes to sell his house to B. B agrees to it. The
parties are capable to do the contract by law. This contract
is valid.

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