COR JESU COLLEGE LAW SCHOOL

2021 MOCK BAR EXAMINATIONS

CIVIL LAW

MAY 4, 2021 6 PM TO 8 PM

ERWIN APRIL C. MIDSAPAK

JD-4

INSTRUCTIONS

1. This Questionnaire contains SIX (6) pages including this page. Check
the number of pages and their proper sequencing.

Read each question very carefully and type your answers in a TIMES NEW
ROMAN font size 14 in the same order as the questions. OBSERVE
PROPER MARGIN. Note well the allocated percentage points for each
question or sub-question. In your answers, use the numbering system in the
questionnaire.

2. Answer the questions legibly, clearly, and concisely. Start each answer
on a separate page. An answer to a sub-question under the same number
may be written continuously on the same page and the immediately
succeeding pages until completed.

3. Your answer should demonstrate your ability to analyze the facts,

apply the pertinent laws and jurisprudence, and arrive at a sound or logical
conclusion. Always support your answer with the pertinent laws, rules,
and/or jurisprudence.

A MERE "YES" OR "NO" ANSWER WITHOUT ANY

CORRESPONDING EXPLANATION OR DISCUSSION WILL NOT BE
GIVEN FULL CREDIT. THUS, ALWAYS BRIEFLY BUT FULLY
EXPLAIN YOUR ANSWERS ALTHOUGH THE QUESTION DOES
NOT EXPRESSLY ASK FOR AN EXPLANATION. DO NOT REWRITE
OR REPEAT THE QUESTION ON YOUR NOTEBOOK.

4. EMAIL YOUR ANSWER TO deanGMDBP@gmail.com.

5. YOUR VIDEO MUST BE ON ALL THROUGH OUT THE

EXAMS. IF THE VIDEO IS OFF, I WILL CONSIDER YOU AS
HAVING COMMITTED CHEATING.

5. AVOID cheating. ANG MAGCHEAT, MAGABAAN!!!

DEAN GENEVIEVE MARIE D.B. PAULINO

 Chairperson
2021 Mock Bar Examinations

CIVIL LAW REVIEW

I.

a. Spouses Lee Pong and Kee At used to be the owners of Apartment

No. 307 of the Paulino Building, together with the leasehold right
for ninety- nine (99) years over the land on which the building
stands. The land is registered in the name of Paulino Investments,
Inc. as evidenced by Transfer Certificate of Title No. 012345 of
the Registry of Deeds of the City Digos. It appears that Paulino
Investments, Inc. owned the building which houses the apartment
units but sold Apartment No. 307 and leased a portion of the land
in which the building stands to the SPOUSES.

In February, 2018, the SPOUSES purchased from MABUHAY

Automotive, Inc. (MABUHAY) seven (7) units of motor vehicles
amounting to P4.7 million payable in 12 installments. Their
agreement included an undertaking in the part of the spouses that:
if they should fail to pay their obligation to MABUHAY, the latter
shall become automatically the owner of the former's apartment
which is located at No. 307, Paulino Building, Digos City, with the
only obligation on its part to pay unto SPOUSES Lee Pong and
Kee At the amount of P300,000; and in such event, SPOUSES Lee
Pong and Kee At shall execute the corresponding Deed of absolute
Sale in favor of MABUHAY and or the Assignment of Leasehold
Rights.

After making a downpayment of P700,000, the SPOUSES failed to

pay the balance of P4,000,000. Due to these unpaid balances,
MABUHAY filed an action for specific performance against the
SPOUSES with the RTC of Digos City, Davao del Sur. After
hearing, judgment was rendered in favor of MABUHAY.

Pursuant to said judgment, an order for execution pending appeal

was issued by the trial court and a deed of assignment dated May
27, 2018, was executed by the SPOUSES over Apartment No. 307
of the Paulino Building together with the leasehold right over the
land on which the building stands. The SPOUSES acknowledged
receipt of the sum of P300,000 more or less, paid by MABUHAY
pursuant to the said judgment.

Notwithstanding the execution of the deed of assignment the

SPOUSES remained in possession of the premises. Subsequently,

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 they were allowed to remain in the premises as lessees for a
stipulated monthly rental until November 30, 2018.

Despite the expiration of the said period, the SPOUSES failed to

surrender possession of the premises in favor of MABUHAY. This
prompted MABUHAY to file an ejectment case against them in the
City Court of Digos. This action was however dismissed on the
ground that MABUHAY was not the real party in interest, not
being the owner of the building.

On February 7, 2019, after demands to vacate the subject apartment

made by MABUHAY's counsel was again ignored by the
SPOUSES, an action for recovery of possession with damages was
filed with the RTC of Digos City, against the SPOUSES. A
decision in said case was rendered in favor of MABUHAY.

The Spouses assail the DEED of ASSIGNMENT for being void as

it partakes of the nature of PACTUM COMMISORIUM.

A. Whether the deed of assignment is null and void because it is in the

nature of a pactum commissorium? Explain fully. ( 5 pts.)

No. The Deed of Assignment is valid and is not in the nature of

pactum commissorium.

Under the Civil Code, pactum commissorium is one wherein there is

automatic appropriation of the property mortgaged in favor of the
creditor in case the debtor fails to pay his or her obligation.

In the case at bar, what was executed by the spouses is a Deed of

Assignment transferring real rights over the property and not a
transfer of ownership. Therefore, the Deed of Assignment does not
partake of a nature of pactum commissorium.

II

a. In a contract of Antichresis, when will the owner of the real

property regain possession of the thing? Explain fully. ( 5 pts.)

In a contract of Antichresis, the creditor acquires the right to

receive the fruits of the property and to apply the same for the
payment of the interest and the principal amount due from the debtor
or the owner of the property. As such, the owner of the real property
regains possession of the thing from the moment the debs is
extinguished.

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b. When will the obligation of the guarantor not attach even if the
debtor failed to pay the loan? Explain fully. ( 5 pts.)

The obligation of the guarantor does not attach even when the
debtor failed to pay the loan whenever the debtor still has properties to
satisfy the payment of his obligation. The guarantor may avail of the
right of excussion wherein the properties of the debtor must first be
exhausted to satisfy his indebtedness before the guarantor can be
compelled to pay the same.

III

The seller executed a contract to sell of a piece of land in favor of the

buyer. Their contract to sell contained an automatic cancellation
clause in case of default.

Upon failure by the buyer to make any installment payment, the seller
cancelled the contract to sell relying on the automatic cancellation
clause stated in the Contract. In a letter sent to the buyer, the seller
notified the buyer of the cancellation of the Contract.

Later on, the buyer remitted certain amounts to the seller and they
executed a new contract to sell but eventually, the buyer still defaulted
in paying the amortizations.

Later on, the buyer assails the resolution of the contract to sell, stating
that it was invalid for failure to comply with the provisions of the
Maceda Law. Rule on the matter. ( 5 pts.)

The seller has the right to rescind the contract to sell on the
ground of the buyer’s default in paying the amortizations.

The provisions of the Maceda Law is only applicable to a sale

of residential lands and condominium units. Moreover, Maceda Law
do not preclude rescission as a remedy. What the law provides is just a
grace period within which the buyer is allowed to pay the overdue
installment or amortizations.

In the case at bar, the seller has the right to rescind the sale on
the ground of buyer’s failure to pay the amortizations.

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 IV

State whether the statement is true or false. SUPPORT YOUR

ANSWER WITH REASONS. ( 5 pts. Each)

a. The rule that contracts are binding only between the parties, their
assigns, heirs is absolute. The rule has no exceptions. ( 5 pts. )

FALSE.

Under accion pauliana, creditors may rescind contract entered into

by the debtor to defraud them. Also in contracts with stipulation pour
atrui, wherein a benefit is conferred in favor of a third person not a
party to the contract.

b. Contracts entered into by minors are voidable. Such rule is

absolute and admits no exception. ( 5 pts.)

FALSE.

Contracts entered into by minors are valid insofar as it has

redounded to the benefit of the minor such as the sale or delivery of
consumables or things essential for sustenance and such thing
benefited the minor.

c. Unenforceable contracts can not be cured. ( 5 pts. )

TRUE.

Unenforceable contracts cannot be cured because the contract itself

is valid but only unenforceable. In other words, the contract is valid
but it cannot be enforced because it lacks certain requirements to be
enforceable. There is nothing to cure because the contract is valid
albeit unenforceable.

d. Any waiver of an action for fraud is void. ( 5 pts. )

FALSE.

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 Under the Civil Code, any waiver of an action for future fraud is
void. Therefore, any waiver of an action for fraud is valid. What is
void is a waiver of an action for future fraud.

e. A condonation of a debt is a formal contract. ( 5 pts.)

FALSE.

While condonation is essentially gratuitous in nature and requires

the acceptance of the debtor, it does not follow that condonation is a
formal contract because it can be made either expressly or impliedly.
Stated otherwise, condonation can be had even without complying
with the formalities of law as in the case of a donation.

V.

a. What are the remedies available to the aggrieved party if the other
contracting party committed fraud? Explain fully. ( 5 pts.)

If the other party committed dolo incidente or incidental fraud, the

remedy is specific performance with right to damages. If the other
party committed dolo causante or causal fraud, the remedy is
annulment or resolution of the contract on the ground of vitiated
consent plus damages.

b. Discuss the different periods for the filing of an action for

annulment. ( 5 pts.)

An action of annulment on the ground that the contract is void does

not prescribe. In rescissible contracts, the period is four years from the
attainment of age of majority. In voidable contracts the period is for
years from the discovery of fraud or knowledge of the mistake or for
years from the cessation of undue influence or violence.

c. Differentiate. Give all the differences among the three: a. Form is

important for validity; b. Form is important for enforceability; and
c. Form is important for convenience. ( 5 pts.)

Form is important for validity in case of a formal contract such as

donation and non-compliance with the formalities prescribed by
law would render it void. In cases where form is important for

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 enforceability applies to contracts covered by the Statute of Frauds
under Article 1403 of the Civil Code. It must be in a certain form
or a note or memorandum to be enforceable. It may be valid
because it has the essential elements of a contract but it cannot be
enforced because it is not evidenced by a certain note or
memorandum. When we speak of form as essential for
convenience, it only means that there is a valid and existing
contract and on account of such existence, one of the parties may
compel the other to observe such for convenience such as an oral
sale of land wherein the vendee may compel the vendor to execute
a Deed of Sale for purposes of registration with the Register of
Property.

d. Differentiate the remedy of reformation of instrument from the

remedy of the parties to compel each other to observe the form of
contracts, if the law requires a document or a special form under
Article 1357 of the New Civil Code. ( 5 pts.)

Reformation is available as a remedy in cases where there is a

meeting of minds but the contract fails to express the true intention
of the parties. On the other hand, the remedy under Article 1357 of
the New Civil Code presupposes the existence of a valid contract
the only problem is that it is not executed in a document or special
form necessary for the convenience of the parties. For instance an
oral contract of sale of a piece of land is valid. However, parties to
the sale cannot register it with the Register of Deed without
executing a Deed of Sale which is a form required by law. As such,
the parties to the oral sale may compel each other to observe that
form for purposes of convenience and or registration.

e. Is there novation in case of dacion en pago? Explain fully. ( 5pts.)

Yes. In Dation en Pago there is an objective novation of contract

because the parties agree that a property instead of money is used
as an equivalent performance in satisfaction of a debt in money.
There is in effect a change in the object of the contract which is
one of the characteristic of novation.

VI

A, B, C, D, E and F are solidary debtors of X in the amount of

P550,000 which is payable on June 5, 2021. In December of 2020,
X met a vehicular accident. The first person who came to his

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 rescue was D. If not for the act of D, X could have died because of
loss of blood.

When X totally recovered, he caused the remission of the entire

debt of P550,000.

STATE ALL THE CONSEQUENCES OF SUCH

CONDONATION. ( 5 PTS.)

The condotation/remission of the entire debt in favor of D

extinguished the entire obligation with respect to the other solidary
debtors specifically A, B, C, E and F. However, D cannot demand
reimbursement from his fellow debtors on account of the remission
because it would be tantamount to unjust enrichment.

VII

a. As a general rule, a sale transaction is covered by the Statute of

Frauds. Give 4 instances when a contract of sale is no longer
covered by the Statute of Frauds and hence, enforceable. ( 5 pts.)

1. When there is partial payment of the consideration in the

Contract of Sale.
2. When there is full payment of the consideration in the Contract
of Sale.
3. When there is already delivery of the object of the contract of
sale.
4. When the vendee already took actual or constructive possession
of the property subject of the sale.

b. Is a contract of sale effected through electronic commerce

unenforceable? Explain fully. ( 5 pts.)

NO. A contract of sale effected through e-commerce is not

unenforceable.

Under the law, sales made under a digital platform is not

unenforceable. The reason is that, while the sale may be made in
electronic means, it is not bereft of any paper trail evidencing the
transaction. In other words, certain forms are still available though
electronic in nature, to prove the existence of the transaction.

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c. When is a contract entered into in behalf of another rescissible and
not unenforceable? Explain fully. ( 5 pts.)

A contract entered into in behalf of another is rescissible whenever

the latter suffers lesion or economic damage exceeding one-fourht
(1/4) of the value of the thing.

d. What are the remedies available to a vendor in sale of personal

property payable in installments? ( 5 pts.)

The remedies available to a vendor in sale of personal property are

the following:

a) Exact fulfilment of the obligation

b) Cancellation or rescission of sale
c) Forcelose the chattel motgage if one has been constituted

VIII

a. Angel came to you and asks for your legal advice. Give your legal
advice. These are the facts

A few years ago, Angel purchased a parcel of land in the province

and immediately started cultivating it, though she was not able to
immediately transfer the title in her name because of financial
constraint.  Last week, she went to the Register of Deeds to finally
transfer the title of the property in her name, but the clerk informed
her that she cannot do that because the title of the seller was
already cancelled. It turned out that the seller also sold the property
to his brother after the property was sold to Angel, and the brother
was able to transfer the title in his name. Angel wants to know her
rights and legal recourse under the circumstances? Explain fully. (
5 pts.)

In case of double sale of land the order of preference are as

follows:

1) The first registrant in good faith;

2) The first possessor in good faith;
3) The one having the oldest title.

In the case at bar, it was the brother of the seller who was the first
registrant as he was able to transfer the title in his name. In other

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 words, the law is in his favor. However, Angel may allege bad
faith on the part of the seller’s brother considering the privity in
terms of his relationship with the seller. In other words, Angel may
file an action for reconveyance and cancellation of title.

b. What are the advantages and protection of an innocent purchaser

for value? Cite 3. ( 5 pts.)

An innocent purchaser for value is not prejudiced by the defect in

the title of the vendor not appearing on the face of the title. Under
the mirror principle, persons dealing in property need not look
beyond what is in the face of the title to ascertain defect in the title
of the registered owner. In other words, reliance on the face of the
title affords protection to the innocent purchaser for value.

There are cases when a forged deed can be a source of good title.
For instance A forged the signature of B in a Deed of Sale
purporting a sale of land owned by B to A. A then successfully
transferred the title of B’s land in his own name. Subsequently, A
sold the land to C, an innocent purchase for value. In this case, B
cannot anymore recover the land bough by C who is an innocent
purchaser value despite of the forgery employed by A.

CIVIL LAW REVIEW

-NOTHING FOLLOWS-

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