The Law on Obligations and Contracts

Subject: The Law on Obligations and Contracts

Kindly answer the following questions:

1. Distinguish divisible and indivisible obligations.

2. A and B bind themselves to pay C their loan of P10,000 on a certain date.  Is the obligation divisible or indivisible?  Explain your answer.

3. Define obligation with a penal clause.

4. What are the purposes of incorporating a penal clause to an obligation?

5. X promise to deliver to Y a specific horse.  Their contract contains a penal clause that in case of non-fulfillment, X shall pay a penalty of P10,000.  X wants to just pay the penalty instead of delivering the horse.  Has Y the right to refuse to accept the penalty in lieu of the horse?  Explain your answer.

6. Define payment.

7.  D owes C P10,000 with G, as guarantor.  On the due date of the obligation, T, a third person, offered to pay the obligation of D.  Can C legally refuse to accept the payment?  Explain.  How about an offer of payment from G?  Explain your answer briefly.