TASK PERFORMANCE I. CONTRACT RECOGNITION TASK For the following scenarios, determine the status of the contract entered into. Write the letter of the correct answer on the space provided before each number. (20 items x 2 points) A. B. C. D. E. Perfectly Valid Rescissible Voidable Unenforceable Null and void Rescissible Voidable Unenforceable Void Contracts validlyDefect is caused by Those that do notDefect is caused by agreed upon but, by vices of consent. comply with thelack of essential reason of lesion or Statute of Frauds. elements or illegality. economic prejudice One of the may be rescinded in contracting parties is Both parties are cases established by incapacitated. incapacitated. law. Those entered into in Defect is caused by the name of another injury/ damage either by one without or to one of the parties acting in excess of of to a 3rd person authority. Comparative Table of Defective Contracts 1. 2. 3. 4. 5. 6. 7. 8. D. A, minor, sold in writing his ball pen for P1,000 to B, a capacitated person. The book value of the ball pen is P1,500 so A suffered lesion by more than ¼ the value of the thing which is the object thereof. C. G, guardian of minor M, sold in writing the house and lot of Mat a selling price of P7,000,000 when its book value is P10,000,000. The sale is without prior approval of guardianship court. D. On January 1, A, the guardian of X, orally sold a phone of X in X’s name to J, a minor, at a selling price of P749 when its book value is P1,000. The payment is to be made on February 2 while delivery is to be made on March 1. A. S orally sold a piece of land to B in the amount of P200,000 payable in four (4) installments. B already paid a consideration of P50,000 representing the first installment. C. A, agent of P, orally sold the land of P in P’s name to B. The authority of A is not in writing and B has already paid the whole purchase price to A. D. A, a minor, orally sold the cell phone of his brother at a selling price of P500. The buyer, an insane person, already paid P100 of the selling price to A. A. A orally entered a contract for a piece of work of cake at a price of P500. The performance and payment of price shall be done after five (5) months. A. S orally entered into a contract of barter with B involving a cell phone and a laptop. The values of the cell phone and laptop are P5,000 and P15,000, respectively. The exchange will happen after six (6) months. This study source was downloaded by 100000832543528 from CourseHero.com on 03-21-2022 12:29:16 GMT -05:00 https://www.coursehero.com/file/95785017/04-Task-Performance-114docx/ 9. E. A mother sold two (2) fishponds to her daughter and the latter, in turn, resold the same fishponds to her stepfather. 10. A. A Filipino leased a parcel of land to a foreigner for 99 years with an option to buy the property within 50 years provided that the latter shall become a Filipino. 11. A. A written contract for a transfer of a piece of land at an amount of P500,000 with a fair market value of P550,000. Delivery and payment have not yet been made. 12. C. The wife orally sold a land which is a community property to a third person without the consent of the husband at a price of P60,000 when the book value is P100,000. 13. E. Oral contract of sale of a cell phone at a price of P400 but delivery and payment will be made after 15 months. 14. E. Oral contract of sale of a piece of land with a price of P499 but delivery and payment will be made after one (1) month. 15. D. A written contract of sale of a piece of land at a price of P499 between a demented and an insane person. 16. . G, the guardian of M, a minor, orally sold M’s cell phone for P500 to I, an insane person. Delivery and payment have not yet been made. 17. D. M, an insane person, orally sold prohibited drugs at a price of P1,000 when its book value is P1,500, to I, an insane person also. Delivery and payment have not yet been made. 18. E. An oral contract of sale of a cell phone at a price of P5,000 between husband and wife who are covered by absolute community or conjugal property regime. Delivery and payment will happen after two (2) months. 19. E. A written contract of sale of car at a price of P70,000 between husband and wife who are covered by regime of absolute or complete separation of property. The husband pointed a gun to the wife to sign the contract. Delivery and payment have not yet been made. 20. E. An oral contract of sale of forest land or national park at a selling price of P100,000,000 with partial payment of P20,000,000. II. CASE ANALYSIS Analyze the following cases and answer the questions that follow. (4 items x 10 points) Case 1. Supposed sale was evidenced by a receipt acknowledging receipt of P1,000. Facts: B bought on a partial payment of P1,000.00, evidenced by a receipt, a portion of a subdivision from S, administrator of the testate estate of his deceased spouse. Subsequently, S was authorized by the court to sell the subdivision. In the meantime, PT Co. became the new administrator. It sold the lot to another which sale was judicially approved. B files a complaint which seeks, among other things, for the quieting of title over the lot in question (Leabres vs. Court of Appeals, 146 SCRA 158 [1986]). Issue: Was there a valid and enforceable sale to B? Held: An examination of the receipt reveals that the same can neither be regarded as a contract of sale or a promise to sell. There was merely an acknowledgment of the sum of One Thousand Pesos (P1,000.00). There was no agreement as to the total purchase price of the land nor to the monthly installment to be paid by the petitioner. The requisites of a valid Contract of Sale namely 1) consent or meeting of the minds of the parties; 2) determinate subject matter; 3) price certain in money or its equivalent-are lacking in said This study source was downloaded by 100000832543528 from CourseHero.com on 03-21-2022 12:29:16 GMT -05:00 https://www.coursehero.com/file/95785017/04-Task-Performance-114docx/ receipt and therefore the “sale” is not valid nor enforceable. Furthermore, it is a fact that his spouse was died. Her estate was thereafter under custodia legis of the Probate Court which appointed S as Administrator. S entered into said sale in his own personal-capacity and without court approval, consequently, said sale cannot bind the estate of wife. Petitioner should have submitted the receipt of alleged sale to the Probate Court for its approval of the transactions. Anent his possession of the land, petitioner cannot be deemed a possessor in good faith in view of the registration of the ownership of the land. To consider petitioner in good faith would be to put a premium on his own gross negligence. The Court resolved to DENY the petition for lack of merit and to AFFIRM the assailed judgment. Case 2. Vendor “sells, transfers, and conveys” a land to the vendee who may sell or assign the land prior to full payment of all installments. Facts: The dispositive part of a deed entitled “Deed of Sale of Real Property” states: “for and in consideration of the sum of P140,000, payable under the terms and conditions stated in the foregoing premises, the VENDOR sells, transfers and conveys unto the VENDEE x x x” the property in question as of December 22, 19XX, the date of said document.” It is provided that “should the VENDEE prior to the full payment of all the amounts aforementioned, decide to sell or to assign part or all of the aforementioned parcel of land, the VENDOR shall be informed in writing and shall have the option to repurchase the property x x x. Should the VENDOR herein decide to repurchase, and the property is sold or transferred to a third person, the balance of the consideration herein still due to the VENDOR shall constitute automatically a prior lien on the consideration to be paid by the third person to herein VENDEE.” Issue: Is the above instrument a contract to sell? Held: it is an instrument of a contract to sell by Recto Law it’s a occurs when the vendor reserves the right to repurchase the thing sold and this is applicable in the contract of pacto de retro sale or sale with a right to repurchase. And vendor has the rights to repurchase and sold or to third person unless vendee are: 1. Fail to pay, regardless of the number of installments defaulted; 2. Cancel the sale, should vendee’s failure to pay cover two (2) or more installments. The vendor shall return to the vendee the sums received minus reasonable rent; 3. Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the vendee’s failure to pay cover two (2) or more installments. Case 3. Some of the goods contracted to be sold were missing through fault of carrier. Facts: S, a domestic corporation, alleges that B, a general partnership, refused to pay the price of various automotive products, with the latter claiming that it had not received the merchandise. It appears that upon receipt of the Bill of Lading, B initiated, but did not pursue, steps to take delivery as it was advised by NN Company, owner of the vessel on which the spare parts were loaded by S’s forwarding agent, that because some parts were missing, they would just be informed as soon as the missing parts were located. It was only four (4) years later when a warehouseman of NN found in its bodega, parts of the shipment in question, but already deteriorated and valueless. Issue: Under the circumstances, can B be faulted for not accepting or refusing to accept the shipment from NN four (4) years after shipment? This study source was downloaded by 100000832543528 from CourseHero.com on 03-21-2022 12:29:16 GMT -05:00 https://www.coursehero.com/file/95785017/04-Task-Performance-114docx/ Case 4. Machine purchased was in accordance with specifications in contract but did not give the result expected by the buyer. Facts: Under a contract of sale, S delivered and installed in B’s establishment a refrigerating machine. The machine was in perfect accord with the description made in the contract, but it did not give the result expected by B. S brought action to recover the balance of the purchase price. Issue: Is B’s action in refusing to pay such balance justifiable considering that he could not use the machine satisfactorily in his establishment? 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