INSTRUCTIONS

This questionnaire consists of twenty-one (21) questions contained in eight (8) pages. Read each question very carefully. Answer legibly, clearly and concisely. Start each number on a separate page; an answer to a subquestion under the same number may be written continuously on the same page and on the immediately succeeding pages until completed. Do not repeat the question.

You will be given credit for your knowledge of legal doctrine and for the quality of your legal reasoning. A mere “Yes” or “No” answer without any corresponding discussion will not be given any credit.

HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE.

GOOD LUCK!!!

PLEASE CHECK THE NUMBER OF PAGES IN THIS SET
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

I

Lani filed an action for partition and accounting in the Regional Trial Court (RTC) of Manila against her sister Mary Rose, who is a resident of Singapore and is not found in the Philippines. Upon motion, the court ordered the publication of the summons for three weeks in a local tabloid, Bulgar. Linda, an OFW vacationing in the Philippines, saw the summons in Bulgar and brought a copy of the tabloid when she returned to Singapore. Linda showed the tabloid and the page containing the summons to Mary Rose, who said, “Yes I know, my kumare Anita scanned and e-mailed that page of Bulgar to me!”

Did the court acquire jurisdiction over Mary Rose? (4%)

II

Fe filed a suit for collection of P387,000 against Ramon in the RTC of Davao City. Aside from alleging payment as a defense, Ramon in his answer set up counterclaims for P100,000 as damages and P30,000 as attorney’s fees as a result of the baseless filing of the complaint, as well as for P250,000 as the balance of the purchase price of the 30 units of air conditioners he sold to Fe.

1. Does the RTC have jurisdiction over Ramon’s counterclaims, and if so, does he have to pay docket fees therefor? (3%)
2. Suppose Ramon’s counterclaim for the unpaid balance is P310,000, what will happen to his counterclaims if the court dismisses the complaint after holding a preliminary hearing on Ramon’s affirmative defenses? (3%)
3. Under the same premise as paragraph (b) above, suppose that instead of alleging payment as a defense in his answer, Ramon filed a motion to dismiss on that ground, at the same time setting up his counterclaims, and the court grants his motion. What will happen to his counterclaims? (3%)

III

1. Angela, a resident of Quezon City, sued Antonio, a resident of Makati City before the RTC of Quezon City for the reconveyance of two parcels of land situated in Tarlac and Nueva Ecija, respectively. May her action prosper? (3%)
2. Assuming that the action was for foreclosure on the mortgage of the same parcels of land, what is the proper venue for the action? (3%)

IV

Filomeno brought an action in the Metropolitan Trial Court (MeTC) of Pasay City against Marcelino pleading two causes of action. The first was a demand for the recovery of physical possession of a parcel of land situated in Pasay City with an assessed value of P40,000; the second was a claim for damages of P500,000 for Marcelino’s unlawful retention of the property. Marcelino filed a motion to dismiss on the ground that the total amount involved, which is P540,000, is beyond the jurisdiction of the MeTC. Is Marcelino correct? (4%)

V

Within the period for filing a responsive pleading, the defendant filed a motion for bill of particulars that he set for hearing on a certain date. However, the defendant was surprised to find on the date set for hearing that the trial court had already denied the motion on the day of its filing, stating that the allegations of the complaint were sufficiently made.

1. Did the judge gravely abuse his discretion in acting on the motion without waiting for the hearing set for the motion? (3%)
2. If the judge grants the motion and orders the plaintiff to file and serve the bill of particulars, can the trial judge dismiss the case if the plaintiff does not comply with the order? (3%)

VI

After his properties were attached, defendant Porfirio filed a sufficient counterbond. The trial court discharged the attachment. Nonetheless, Porfirio suffered substantial prejudice due to the unwarranted attachment. In the end, the trial court rendered a judgment in Porfirio’s favor by ordering the plaintiff to pay damages because the plaintiff was not entitled to the attachment. Porfirio moved to charge the plaintiff’s attachment bond. The plaintiff and his sureties opposed the motion, claiming that the filing of the counterbond had relieved the plaintiff’s attachment bond from all liability for the damages. Rule on Porfirio’s motion. (4%)

VII

1. The writ of execution was returned unsatisfied. The judgment obligee subsequently received information that a bank holds a substantial deposit belonging to the judgment obligor. If you are the counsel of the judgment obligee, what steps would you take to reach the deposit to satisfy the judgment? (3%)
2. If the bank denies holding the deposit in the name of the judgment obligor but your client’s informant is certain that the deposit belongs to the judgment obligor under an assumed name, what is your remedy to reach the deposit? (3%)

VIII

Bembol was charged with rape. Bembol’s father, Ramil, approached Artemon, the victim’s father, during the preliminary investigation and offered P1 Million to Artemon to settle the case. Artemon refused the offer.

1. During trial, the prosecution presented Artemon to testify on Ramil’s offer and thereby establish an implied admission of guilt. Is Ramil’s offer to settle admissible in evidence? (3%)
2. During the pre-trial, Bembol personally offered to settle the case for P1 Million to the private prosecutor, who immediately put the offer on record in the presence of the trial judge. Is Bembol’s offer a judicial admission of his guilt? (3%)

IX

The search warrant authorized the seizure of “undetermined quantity of shabu.” During the service of the search warrant, the raiding team also recovered a kilo of dried marijuana leaves wrapped in newsprint. The accused moved to suppress the marijuana leaves as evidence for the violation of Section 11 of the Comprehensive Dangerous Drugs Act of 2002 since they were not covered by the search warrant. The State justified the seizure of the marijuana leaves under the “plain view” doctrine. There was no indication of whether the marijuana leaves were discovered and seized before or after the seizure of the shabu. If you are the judge, how would you rule on the motion to suppress? (4%)

X

Jose, Alberto and Romeo were charged with murder. Upon filing of the information, the RTC judge issued the warrants for their arrest. Learning of the issuance of the warrants, the three accused jointly filed a motion for reinvestigation and for the recall of the warrants of arrest. On the date set for hearing of their motion, none of the accused showed up in court for fear of being arrested. The RTC judge denied their motion because the RTC did not acquire jurisdiction over the persons of the movants. Did the RTC rule correctly? (4%)

XI

Arturo lent P1 Million to his friend Robert on the condition that Robert execute a promissory note for the loan and a real estate mortgage over his property located in Tagaytay City. Robert complied. In his promissory note dated September 20, 2006, Robert undertook to pay the loan within a year from its date at 12% per annum interest. In June 2007, Arturo requested Robert to pay ahead of time but the latter refused and insisted on the agreement. Arturo issued a demand letter and when Robert did not comply, Arturo filed an action to foreclose the mortgage. Robert moved to dismiss the complaint for lack of cause of action as the debt was not yet due. The resolution of the motion to dismiss was delayed because of the retirement of the judge.

1. On October 1, 2007, pending resolution of the motion to dismiss, Arturo filed an amended complaint alleging that Robert’s debt had in the meantime become due but that Robert still refused to pay. Should the amended complaint be allowed considering that no answer has been filed? (3%)
2. Would your answer be different had Arturo filed instead a supplemental complaint stating that the debt became due after the filing of the original complaint? (2%)

XII

After receiving the adverse decision rendered against his client, the defendant, Atty. Sikat duly filed a notice of appeal. For his part, the plaintiff timely filed a motion for partial new trial to seek an increase in the monetary damages awarded. The RTC instead rendered an amended decision further reducing the monetary awards. Is it necessary for Atty. Sikat to file a second notice of appeal after receiving the amended decision? (3%)

XIII

An heir/oppositor in a probate proceeding filed a motion to remove the administrator on the grounds of neglect of duties as administrator and absence from the country. On his part the heir/oppositor served written interrogatories to the administrator preparatory to presenting the latter as a witness. The administrator objected, insisting that the modes of discovery apply only to ordinary civil actions, not special proceedings. Rule on the matter. (4%)

XIV

On August 15, 2008, Edgardo committed estafa against Petronilo in the amount of P3 Million. Petronilo brought his complaint to the National Bureau of Investigation, which found that Edgardo had visited his lawyer twice, the first time on August 14, 2008 and the second on August 16, 2008; and that both visits concerned the swindling of Petronilo. During the trial of Edgardo, the RTC issued a subpoena ad testificandum to Edgardo’s lawyer for him to testify on the conversations during their first and second meetings. May the subpoena be quashed on the ground of privileged communication? Explain fully. (4%)

XV

Half-brothers Roscoe and Salvio inherited from their father a vast tract of unregistered land. Roscoe succeeded in gaining possession of the parcel of land in its entirety and transferring the tax declaration thereon in his name. Roscoe sold the northern half to Bono, Salvio’s cousin. Upon learning of the sale, Salvio asked Roscoe to convey the southern half to him. Roscoe refused as he even sold one-third of the southern half along the West to Carlo. Thereupon, Salvio filed an action for the reconveyance of the southern half against Roscoe only. Carlo was not impleaded. After filing his answer, Roscoe sold the middle third of the southern half to Nina. Salvio did not amend the complaint to implead Nina.

After trial, the court rendered judgment ordering Roscoe to reconvey the entire southern half to Salvio. The judgment became final and executory. A writ of execution having been issued, the Sheriff required Roscoe, Carlo and Nina to vacate the southern half and yield possession thereof to Salvio as the prevailing party. Carlo and Nina refused, contending that they are not bound by the judgment as they are not parties to the case. Is the contention tenable? Explain fully. (4%)

XVI

The mutilated cadaver of a woman was discovered near a creek. Due to witnesses attesting that he was the last person seen with the woman when she was still alive, Carlito was arrested within five hours after the discovery of the cadaver and brought to the police station. The crime laboratory determined that the woman had been raped. While in police custody, Carlito broke down in the presence of an assisting counsel and orally confessed to the investigator that he had raped and killed the woman, detailing the acts he had performed up to his dumping of the body near the creek. He was genuinely remorseful. During the trial, the State presented the investigator to testify on the oral confession of Carlito. Is the oral confession admissible as evidence of guilt? (4%)

XVII

Ben sold a parcel of land to Del with right to repurchase within one (1) year. Ben remained in possession of the property. When Ben failed to repurchase the same, title was consolidated in favor of Del. Despite demand, Ben refused to vacate the land, constraining Del to file a complaint for unlawful detainer. In his defense, Ben averred that the case should be dismissed because Del had never been in possession of the property. Is Ben correct? (4%)

XVIII

Domenico and Gen lived without benefit of marriage for twenty years, during which time they purchased properties together. After Domenico died without a will, Gen filed a petition for letters of administration. Domenico’s siblings opposed the same on the ground that Gen has no legal personality. Decide. (4%)

XIX

After Alma had started serving her sentence for violation of Batas Pambansa Blg. 22 (BP 22), she filed a petition for writ of habeas corpus, citing Vaca vs. CA where the sentence of imprisonment of a party found guilty of violation of BP 22 was reduced to a fine equal to double the amount of the check involved. She prayed that her sentence be similarly modified and that she be immediately released from detention. In the alternative, she prayed that pending determination on whether the Vaca ruling applies to her, she be allowed to post bail pursuant to Rule 102, Sec.14, which provides that if a person is lawfully imprisoned or restrained on a charge of having committed an offense not punishable by death, he may be admitted to bail in the discretion of the court. Accordingly, the trial court allowed Alma to post bail and then ordered her release. In your opinion, is the order of the trial court correct -

1. Under Rule 102? (2%)
2. Under the Rules of Criminal Procedure? (2%)

XX

A tugboat owned by Speedy Port Service, Inc. (SPS) sank in Manila Bay while helping tow another vessel, drowning five (5) of the crew in the resulting shipwreck. At the maritime board inquiry, the four (4) survivors testified. SPS engaged Atty. Ely to defend it against potential claims and to sue the company owning the other vessel for damages to the tug. Ely obtained signed statements from the survivors. He also interviewed other persons, in some instance making memoranda. The heirs of the five (5) victims filed an action for damages against SPS.

Plaintiffs’ counsel sent written interrogatories to Ely, asking whether statements of witnesses were obtained; if written, copies were to be furnished; if oral, the exact provisions were to be set forth in detail. Ely refused to comply, arguing that the documents and information asked are privileged communication. Is the contention tenable? Explain. (4%)

XXI

1. Compare the certiorari jurisdiction of the Supreme Court under the Constitution with that under Rule 65 of the Rules of Civil Procedure. (4%)
2. Give at least three instances where the Court of Appeals may act as a trial court. (3%)

NOTHING FOLLOWS.

INSTRUCTIONS

This questionnaire consists of fourteen (19) numbers contained in nine (9) pages. Read each question very carefully. Answer legibly, clearly and concisely. Start each number on a separate page; an answer to a subquestion under the same number may be written continuously on the same page and on the immediately succeeding pages until completed. Do not repeat the question.

You will be given credit for your knowledge of legal doctrine and for the quality of your legal reasoning. A mere “Yes” or “No” answer without any corresponding discussion will not be given any credit.

HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE

GOOD LUCK!!!

PLEASE CHECK THE NUMBER OF PAGES IN THIS SET
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

I

X corporation entered into a contract with PT Contruction Corp. for the latter to construct and build a sugar mill within six (6) months. They agreed that in case of delay, PT Construction Corp. will pay X Corporation P100,000 for every day of delay. To ensure payment of the agreed amount of damages, PT Construction Corp. secured from Atlantic Bank a confirmed and irrevocable letter of credit which was accepted by X Corporation in due time. One week before the expiration of the six (6) month period, PT Construction Corp. requested for an extension of time to deliver claiming that the delay was due to the fault of X Corporation. A controversy as to the cause of the delay which involved the workmanship of the building ensued. The controversy remained unresolved. Despite the controversy, X Corporation presented a claim against Atlantic Bank by executing a draft against the letter of credit.

1. Can Atlantic Bank refuse payment due to the unresolved controversy? Explain. (3%)
2. Can X Corporation claim directly from PT Construction Corp.? Explain. (3%)

II

Tom Cruz obtained a loan of P 1 Million from XYZ Bank to finance his purchase of 5,000 bags of fertilizer. He executed a trust receipt in favor of XYZ Bank over the 5,000 bags of fertilizer. Tom Cruz withdrew the 5,000 bags from the warehouse to be transported to Lucena City where his store was located. On the way, armed robbers took from Tom Cruz the 5,000 bags of fertilizer. Tom Cruz now claims that his obligation to pay the loan to XYZ Bank is extinguished because the loss was not due to his fault. Is Tom Cruz correct? Explain. (4%)

III

1. As a rule under the Negotiable Instruments Law, a subsequent party may hold a prior party liable but not vice-versa. Give two (2) instances where a prior party may hold a subsequent party liable. (2%)
2. How does the “shelter principle” embodied in the Negotiable Instruments Law operate to give the rights of a holder-in-due course to a holder who does not have the status of a holder-in-due course? Briefly explain. (2%)

IV

AB Corporation drew a check for payment to XY Bank. The check was given to an officer of AB Corporation who was instructed to deliver it to XY Bank. Instead, the officer, intending to defraud the Corporation, filled up the check by making himself as the payee and delivered it to XY Bank for deposit to his personal account. AB Corporation come to know of the officer’s fraudulent act after he absconded. AB Corporation asked XY Bank to recredits its amount. XY Bank refused.

1. If you were the judge, what issues would you consider relevant to resolve the case? Explain (3%)
2. How would you decide the case? Explain. (2%)

V

Pancho drew a check to Bong and Gerard jointly. Bong indorsed the check and also forged Gerard’s endorsement. The payor bank paid the check and charged Pancho’s account for the amount of the check. Gerard received nothing from the payment.

1. Pancho asked the payor bank to recredit his account. Should the bank comply? Explain fully. (3%)
2. Based on the facts, was Pancho as drawerdischarged on the instrument? Why?(2%)

VI

On January 1, 2000, Antonio Rivera secured a life insurance from SOS Insurance Corp. for P1 Million with Gemma Rivera, his adopted daughter, as the beneficiary. Antonio Rivera died on March 4, 2005 and in the police investigation, it was ascertained that Gemma Rivera participated as an accessory in the killing of Antonio Rivera. Can SOS Insurance Corp. avoid liability by setting up as a defense the participation of Gemma Rivera in the killing of Antonio Rivera? Discuss with reasons. (4%)

VII

Terrazas de Patio Verde, a condominium building, has a value of P50 Million. The owner insured the building against fire with three (3) insurance companies for the following amounts:

1. Is the owner’s taking of insurance for the building with three (3) insurers valid? Discuss. (3%)
2. The building was totally razed by fire. If the owner decides to claim from Eastern Insurance Corp. only P50 Million, will the claim prosper? Explain. (2%)

VIII

City Railways, Inc. (CRI) provides train services, for a fee, to commuters from Manila to Calamba, Laguna. Commuters are required to purchase tickets and then proceed to designated loading ang unloading facilities to board the train. Ricardo Santos purchased a ticket for Calamba and entered the station. While waiting, he had an altercation with the security guard of CRI leading to a fistfight. Ricardo Santos fell on the railway just as a train was entering the station. Ricardo Santos was run over by the train. He died.

In the action for damages filed by the heirs of Ricardo Santos, CRI interposed lack of cause of action, contending that the mishap occurred before Ricardo Santos boarded the train and that it was not guilty of negligence. Decide.(5%)

IX

On October 30, 2007, M/V Pacific, a Philippine registered vessel owned by Cebu Shipping Company (CSC), sank on her voyage from Hong Kong to Manila. Empire Assurance Company (Empire) is the insurer of the lost cargoes loaded on board the vessel which were consigned to Debenhams Company. After it indemnified Debenhams, Empire as subrogee filed an action for damages against CSC.

1. Assume that the vessel was seaworthy. Before departing, the vessel was advised by the Japanese Meteorological Center that it was safe to travel to its destination. But while at sea, the vessel received a report of a typhoon moving within its general path. To avoid the typhoon, the vessel changed its course. However, it was still at the fringe of the typhoon when it was repeatedly hit by huge waves, foundered and eventually sank. The captain and the crew were saved except three (3) who perished. Is CSC liable to Empire? What principle of maritime law is applicable? Explain. (3%)
2. Assume the vessel was not seaworthy as in fact its hull had leaked, causing flooding in the vessel. Will your answer be the same? Explain. (2%)
3. Assume the facts in question (b). Can the heirs of the three (3) crew members who perished recover from CSC? Explain fully. (3%)

X

Nelson owned and controlled Sonnel Construction Company. Acting for the company, Nelson contracted the construction of a building. Without first installing a protective net atop the sidewalks adjoining the construction site, the company proceeded with the construction work. One day a heavy piece of lumber fell from the building. It smashed a taxicab which at that time had gone offroad and onto the sidewalk in order to avoid the traffic. The taxicab passenger died as a result.

1. Assume that the company had no more account and property in its name. As counsel for the heirs of the victim, whom will you sue for damages, and what theory will you adopt? (3%)
2. If you were the counsel for Sonnel Construction, how would you defend your client? What would be your theory? (2%)
3. Could the heirs hold the taxicab owner and driver liable? Explain. (2%)

XI

1. Since February 8, 1935, the legislature has not passed even a single law creating a private corporation. What provision of the Constitution precludes the passage of such a law? (3%)
2. May the composition of the board of directors of the National Power Corporation (NPC) be validly reduced to three (3)? explain your answer fully. (2%)

XII

Pedro owns 70% of the subscribed capital stock of a company which owns an office building. Paolo and Juan own the remaining stock equally between them. Paolo also owns a security agency, a janitorial company and a catering business. In behalf of the office building company, Paolo engaged his companies to render their services to the office building. Are the service contracts valid? Explain. (4%)

XIII

Grand Gas Corporation, a publicity listed company, discover after extensive drilling a rich deposit of natural gas along the coast of Antique. For five (5) months, the company did not disclose the discovery so that it could quitely and cheaply acquire neighboring land and secure mining information to the Securities and Exchange Commission, all the directors and key officer of the company bought shares went up. The directors and officer sold their shares at huge profits.

1. What provision of the Securities Regulation Code (SRC) did they violate, if any? Explain. (4%)
2. Assuming that the employees of the establishment handling the printing work of Grand Gas Corporation saw the exploration reports which were mistakenly sent to their establishment together with other materials to be printed. They too bought shares in the company at low prices and later sold them at huge profits. Will they be liable for violation of the SRC? Why? (3%)

XIV

Ace Cruz subscribed to 100,000 shares of stock of JP Development Corporation, which has a par value of P1 per share. He paid P25,000 and promised to pay the balance before December 31, 2008. JP Development Corporation declared a cash dividend on October 15, 2008, payable on December 1, 2008.

1. For how many shares is Ace Cruz entitled to be paid cash dividends? Explain. (2%)
2. On December 1, 2008, can Ace Cruz compel JP Development Corporation to issue to him the stock certificate corresponding to the P25,000 paid by him? (2%)

XV

Eloise, an accomplished writer, was hired by Petong to write a bimonthly newspaper column for Diario de Manila, a newly-established newspaper of which Petong was the editor-in-chief. Eloise was to be paid P1,000 for each column that was published. In the course of two months, Eloise submitted three columns which, after some slight editing, were printed in the newspaper. However, Diario de Manila proved unprofitable and closed only after two months. Due to the minimal amounts involved, eloise chose not to pursue any claim for payment from the newspaper, which was owned by New Media Enterprises.

Three years later, Eloise was planning to publish an anthology of her works, and wanted to include the three columns that appeared in the Diario de Manila in her anthology. She asks for your legal advice:

1. Does Eloise have to secure authorization from New Media Enterprises to be able to publish her Diario de Manila columns in her own anthology? Explain fully. (4%)
2. Assume that New Media Enterprises plans to publish Eloise’s columns in its own anthology entitled, “The Best of Diaro de Manila:. Eloise wants to prevent the publication of her columns in that anthology since she was never paid by the newspaper. Name one irrefutable legal arguments Eloise could cite to enjoin New Media Enterprises from including her columns in its anthology. (2%)

XVI

In 1999, Mocha Warm, an American musician, had a hit rap single called Warm Warm Honey which he himself composed and performed. The single was produced by a California record company, Galactic Records. Many noticed that some passages from Warm Warm Honey sounded eerily similar to parts Unde Hassle, a 1978 hit song by the British rock band Majesty. A copyright infringement suit was filed in the United States against Mocha Warm by Majesty. It was later settled out of court, with Majesty receiving attribution as co-author of Warm Warm Honey as well as a share in the royalties.

By 2002, Mocha Warm was nearing bankruptcy and he sold his economic rights over Warm Warm Honey to Galactic Records for $10,000

In 2008, Planet Films a Filipino movie producing company, commissioned DJ Chef Jean, a Filipino musician, to produce an original re-mix of Warm Warm Honey for use in one of its latest films, Astig!. DJ Chef Jean remixed Warm Warm Honey with salsa beat and interspersed as well a recital of a poetic stanza by John Blake, a 17th century Scottish poet. DJ Chef Jean died shortly after submitting the remixed Warm Warm Honey to Planet Films.

Prior to the release of Astig!, Mocha Warm learns of the remixed Warm Warm Honey and demands that he be publicity identified as the author of the remixed song in all the CD covers and publicity releases of Planet Films.

1. Who are the parties or entities entitled to be credited as author of the remixed Warm Warm Honey? Reason out your answer. (3%)
2. Who are the particular parties or entities who exercise copyright over the remixed Warm Warm Honey? Explain. (3%)

XVII

On January 1, 2008, Al obtained a loan of P10,000 from Bob to be paid on January 30,2008, secured by a chattel mortgage on a Toyota motor car. On February 1, 2008, Al obtained another loan of P10,000 from Bob to be paid on February 15, 2008. he secured this by executing a chattel mortgage on a Honda motorcycle. On the due date of the first loan Al failed to pay. Bob foreclosed the chattel mortgage but the car was bidded for P6,000 only. Al also failed to pay the second loan due on February 15, 2008. Bob filed an action for collection of sum money. Al filed a motion to dismiss claiming that Bob should first cforeclosed the mortgage on the Honda motorcycle before he can file the action for sum of money. Decide with reasons. (4%)

XVIII

1. Can a distressed corporation file a petition for corporate rehabilitation after the dismissal of its earlier petition for insolvency? Why? (2%)
2. Can the corporation file a petition for rehabilitation first, and after it is dismissed file a petition for insolvency? Why? (2%)
3. Explain the key phrase “equality is equity” in corporate rehabilitation proceedings. (2%)

XIX

Industry Bank, which has a net worth of P1 Billion, extended a loan to Celestial Properties Inc. amounting to P270 Million. The loan was secured by a mortgage over a vast commercial lot in the Fort Bonifacio Global City, appraised at P350 Million. After audit, the Bangko Sentral ng Pilipinas gave notice that the loan to Celestial Properties exceeded the single borrower’s limit of 25% of the bank’s net worth under a recent BSP Circular. In light of other previous similar violations of the credit limit requirement, the BSP advised Industry Bank to reduce the amount of the loan to Celestial Properties under pain of severe sanctions. When Industry Bank informed Celestial Properties that it intended to reduce the loan by P50 Million, Celestial Properties countered that the bank should first release a part of the collateral worth P50 Million. Industry Bank rejected the counter-proposal, and reffered the matter to you as counsel. How would you advise Industry Bank to proceed, with its best interest in mind? (5%)

NOTHING FOLLOWS.

INSTRUCTIONS

This questionnaire consist of fifteen (15) questions contained in six (6) pages. Read each question very carefully. Answer legibly, clearly and concisely. Start each number on a separate page; an answer to a subquestion under the same number may be written continuously on the same page and on the immediately succeeding pages until completed. Do not repeat the question.

You will be given credit for your knowledge of legal doctrine and for the quality of your legal reasoning. A mere ” Yes” or “No” answer without any corresponding discussion will not be given credit.

HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE

GOOD LUCK!!!

PLEASE CHECK THE NUMBER OF PAGES IN THIS SET
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

I

1. After due hearing on a petition for a writ of amparo founded on the acts of enforced disappearance and extralegal killing of the son of the complainant allegedly done by the respondent military officers, the court granted the petition. May the military officers be criminally charged in court with enforced disappearance and extralegal killing? Explain fully. (3%)
2. Are human rights violations considered as crimes in the Philippines? Explain. ( 3% )

II

While Carlos was approaching his car, he saw it being driven away by Paolo, a thief. Carlos tried to stop Paolo by shouting at him, but Paolo ignored him. To prevent his car from being carnapped, Carlos drew his gun, aimed at the rear wheel of the car and fired. The shot blew the tire which caused the car to veer out of control and collide with an oncoming tricycle, killing the tricycle driver.

1. What is the criminal liability of Carlos, if any? Explain. ( 4% )
2. What is the criminal liability of Paolo, if any? Explain. ( 4% )

III

Olimpio caught a cold and was running a fever. His doctor prescribed paracetamol. Olimpio went to a drug store with the prescription, and the pharmacist sold him three(3) tablets. Upon arriving home, he took a tablet. One hour later, he had a seizure and died. The autopsy showed that the tablet he had taken was not paracetamol but a pill to which he was allergic. The pharmacist was charged with murder. Is the charge proper? If not, what should it be? Explain. ( 6% )

IV

Manolo revealed to his friend Domeng his desire to kill Cece. He likewise confided to Domeng his desire to borrow his revolver. Domeng lent it. Manolo shot Cece in Manila with Domeng’s revolver. As his gun was used in the killing,Domeng asked Mayor Tan to help him escape. The mayor gave Domeng P5,000.00 and told him to proceed to Mindanao to hide. Domeng went to Mindanao. The mayor was later charged as an accessory to Cece’s murder.

1. Can he be held liable for the charge? Explain. ( 4 % )
2. Can he be held liable for any other offense? Explain fully. ( 3% )

V

Eman, a vagrant, found a bag containing identification cards and a diamond ring along Roxas Blvd. Knowing that it was not his, he went to a nearest police station to seek help in finding the owner of the bag. At the precint PO1 Melvin attended to him. In the investigation Eman proposed to PO1 Melvin, “in case you don’t find the owner let’s just pawn straight to the pawnshop and pawned the ring for P50,000.00 Eman never saw PO1 Melvin again.

1. What is the criminal liability of Eman, If any? Explain. ( 3% )
2. What is the criminal liability of PO1 Melvin, is any? Explain ( 3% )

VI

Hubert and Eunice were married in the Philippines. Hubert took graduate studies in New York and met his former girlfriend Eula. They renewed their friendship and finally decided to get married. The first wife, Eunice, heard about the marriage and secures a copy of the marriage contract in New York. Eunice filed a case of Bigamy against Hubert in the Philippines.

1. Will the case prosper? Explain. ( 4% )
2. If Eunice gave her consent to the second marriage, what will your answer be? Explain. ( 3% )

VII

The inter-island vessel M/V Viva Lines I, while cruising off Batanes, was forced to seek shelter at the harbor of Kaoshiung, Taiwan because of a strong typhoon. While anchored in said harbor, Max, Baldo and Bogart arrived in a speedboat, fired a bazooka at the bow of the vessel, boarded it and divested the passengers of their money and jewelry. A passenger of M/V Viva Lines I, Dodong advantage of the confusion to settle an old grudge with another passenger, and killed him. After their apprehension, all four were charged with qualified piracy before a Philippine court.

1. Was the charge of qualified piracy against the three person ( Max, Badong and Bogart ) who boarded the inter-island vessel correct? Explain. ( 3% )
2. Was Dodong correctly charged before the Philippine court for qualified piracy? Explain. ( 3% )

VIII

Francis and Joan were sweethearts, but their parents had objected to their relationship because they were first cousins. They forged a pact in writing to commit suicide. The agreement was shoot each other in the head which they did. Joan died. Due to medical assistance, Francis survived. Is Francis criminally liable for the death of Joan? Explain. ( 5% )

IX

Dennis leased his apartment to Myla for P10,000 a month. Myla failed to pay the rent for 3months. Gabriel , the son of Dennis, prepared a demand letter falsely alleging that his father had authorized him to collect the unpaid rentals. Myla paid the unpaid rentals to Gabriel who kept the payment.

1. Did Gabriel commit a crime? Explain. ( 4% )
2. Can Gabriel invoke his relationship with Dennis to avoid criminal liability? Explain. ( 3% )

X

Upon opening a letter containing 17 money orders, the mail carrier forged the signatures of the payees on the money order and encashed them. What crime or crimes did the mail carrier commit? Explain briefly. ( 6% )

XI

Ricky was reviewing for the bar exam when the commander of a vigilante group came to him and showed him a list of five policemen to be liquidated by them for graft and corruption. He was further asked if any of them is innocent. After going over the list, Ricky pointed to two of the policemen as honest. Later, the vigilante group liquidated the three other policemen in the list. The commander of the vigilante group reported the liquidation to Ricky. Is Ricky criminally liable? Explain. ( 7% )

XII

Raissa and Martin are married to each other but had been separated for the last five years. Raissa decided to wed Juan, her suitor. Who had no inkling that she was married. Raissa and Juan accomplished an application for marriage license which they subscribed and swore to before the Local Civil Registrar. Raissa declared, in the application, that she is single. The marriage licensed was issued. In due time, the couple were married by the mayor. Raissa and Juan had their first sexual intercourse later in the evening.

What crime or crimes, if any, did Raissa commit? Explain briefly. ( 7% )

XIII

Lucas had been the stay-in houseboy of spouses Nestor and Julia for Five Years. One Night, while Nestor and Julia were out having dinner, Lucas and his friend Pedro gained entry into the masters’ bedroom with the used of a false key. They found Julia’s jewelry box in one of the cabinets which was unlocked. Lucas believed that Julia’s jewelry inside the box. Unknown to Lucas and Pedro, the box was empty. Pedro took the box and left the bedroom with Lucas. They were shock when they saw Nestor in the sala, pointing a gun at them. Nestor ordered them to stop and hand over the box. Pedro complied. It turned out that Nestor had just arrived in time to see Lucas and Pedro leaving the master’s bedroom with the box.

State with reasons, the crime or crimes, if any, Lucas and Pedro committed. ( 7% )

XIV

Eliseo, the deputy sheriff, conducted the execution sale of the property of Andres to satisfy the judgment against him in favor of ABC Corporation, a government-owned or controlled corporation with an original charter. However, the representative of the corporation failed to attend the auction sale. Gonzalo , the winning bidder, purchased property for P100,000 which he paid to Eliseo. Instead of remitting the amount to the Clerk of Court as ex-officio Provincial Sheriff, Eliseo lent the amount to Myrna, his officemate, who promised to repay the amount within two months, with interest thereon. However, Myrna reneged on her promise. Despite demands of ABC Corporation, Eliseo failed to remit the said amount.

1. State with reasons, the crime or crimes, if any, committed by Eliseo. ( 4% )
2. Would your answer to the first question be the same if ABC Corporattion were a private corporation? Explain. ( 3% )

XV

Roger, the leader of a crime syndicate in Malate, Manila, demanded the payment by Antonio, the owner of a motel in that area, of P10,000 a month as “protection money”. With the monthly payment, Roger assured, the syndicate would provide protection to Antonio, his business, and his employees. Should Antonio refuse, Roger warned, the motel owner would either be killed or his establishment destroyed. Antonio refused to pay the protection money. Days later, at round 3:00 in the morning, Mauro, a member of the criminal syndicate, arrived at Antonio’s home and hurled a grenade inti an open window of the bedroom where Antonio, his wife and their three year-old daughter were sleeping. All three of them were killed instantly when the grenade exploded.

State, with reason, the crime or crimes that had been committed as well as the aggravating circumstances, if any, attendant thereto.(7%)

NOTHING FOLLOWS.

INSTRUCTIONS

This questionnaire consists of nineteen (19) questions contained in twelve (12) pages. Read each question very carefully. Answer legibly, clearly and concisely. Start each number on a separate page; an answer to a subquestion under the same number may be written continuously on the same page and on the immediately succeeding pages until completed. Do not repeat the question.

You will be given credit for your knowledge of legal doctrine and for the quality of your legal reasoning. A mere “Yes” or “No” answer without any corresponding discussion will not be given any credit.

HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE.

GOOD LUCK!!!

PLEASE CHECK THE NUMBER OF PAGES IN THIS SET
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

I

Ana Rivera had a husband, a Filipino citizen like her, who was among the passengers on board a commercial jet plane which crashed in the Atlantic Ocean ten (10) years earlier and had never been heard of ever since. Believing that her husband had died, Ana married Adolf Cruz Staedtler, a divorced German national born of a German father and a Filipino mother residing in Stuttgart. To avoid being reqiured to submit the required certificate of capacity to marry from the German Embassy in Manila, Adolf stated in the application for marriage license that he was a Filipino citizen. With the marriage license stating that Adolf was a Filipino, the couple got married in a ceremony officiated by the Parish Priest of Calamba, Laguna in a beach in Nasugbu, Batangas, as the local parish priest refused to solemnize marriages except in his church. Is the marriage valid? Explain fully. (5%)

II

At age 18, Marian found out that she was pregnant. She insured her own life and named her unborn child as her sole beneficiary. When she was already due to give birth, she and her boyfriend Pietro, the father of her unboarn child, were kidnapped in a resort in Bataan where they were vacationing. The military gave chase and after one week, they were found in an abandoned hut in Cavite. Marian and Pietro were hacked with bolos. Marian and the baby delivered were both found dead, with the baby’s umbilical cord already cut. Pietro survived.

1. Can Marian’s baby be the beneficiary of the insurance taken on the life of the mother? (2%)
2. Between Marian and the baby, who is presumed to have died ahead? (1%)
3. Will Pietro, as surviving biological father of the baby, be entitled to claim the proceeds of the life insurance on the life of Marian? (2%)

III

Roderick and Faye were high school sweethearts. When Roderick was 18 and Faye, 16 years old, they started to live together as husband and wife without the benefit of marriage. When Faye reached 18 years of age, her parents forcibly took her back and arranged for her marriage to Brad. Although Faye lived with Brad after the marriage, Roderick continued to regularly visit Faye while Brad was away at work. During their marriage, Faye gave birth to a baby girl, Laica. When Faye was 25 years old, Brad discovered her continued liason with Roderick and in one of their heated arguments, Faye shot Brad to death. She lost no time in marrying her true love Roderick, without a marriage license, claiming that they have been continuosly cohabiting for more than 5 years.

1. Was the marriage of Roderick and Faye valid? (2%)
2. What is the filiation status of Laica? (2%)
3. Can Laica bring an action to impugn her own status on the ground that based on DNA results, Roderick is her biological father? (2%)
4. Can Laica be legitimated by the marriage of her biological parents? (1%)

IV

Gianna was born to Andy and Aimee, who at the time Gianna’s birth were not married to each other. While Andy was single at the time, Aimee was still in the process of securing a judicial declaration of nullity on her marriage to her ex-husband. Gianna’s birth certificate, which was signed by both Andy and Aimee, registered the status of Gianna as “legitimate” , her surname carrying that of Andy’s and that her parents were married to each other.

1. Can a judicial action for correction of entries in Gianna’s birth certificate be successfully maintained to:
   1. Change her status from “legitimate” to “illegitimate” (1%);

      and

   2. Change her surname from that of Andy’s to Aimee’s maiden surname? (1%)
2. Instead of a judicial action, can administrative proceedings be brought for the purpose of making the above corrections? (2%)
3. Assuming that Aimee is successful in declaring her former marriage void, and Andy and Aimee subsequently married each other, would Gianna be legitimated? (1%)

V

Despite several relationships with different women, Andrew remained unmarried. His first relationship with Brenda produced a daughter, Amy, now 30 years old. His second, with Carla, produced two sons: Jon and Ryan. His third, with Donna, bore him no children although Elena has a daughter Jane, from a previous relationship. His last, with Fe, produced no biological children but they informally adopted without court proceedings, Sandy’s now 13 years old, whom they consider as their own. Sandy was orphaned as a baby and was entrusted to them by the midwife who attended to Sandy’s birth. All the children, including Amy, now live with andrew in his house.

1. Is there any legal obstacle to the legal adoption of Amy by Andrew? To the legal adoption of Sandy by Andrew and Elena? (2%)
2. In his old age, can Andrew be legally entitled to claim support from Amy, Jon, Ryan, Vina, Wilma, and Sandy assuming that all of them have the means to support him? (1%)
3. Can Amy, Jon, Ryan, Vina, Wilma, and Sandy legally claim support from each other? (2%)
4. Can Jon and Jane legally marry? (1%)

VI

Alex died without a will, leaving only an undeveloped and untitled lot in Tagiug City. He is survived by his wife and 4 children. His wife told the children that she is waiving her share in the property, and allowed Bobby, the eldest son who was about to get married, to construct his house on ? of the lot, without however obtaining the consent of his siblings. After settlement of Alex’s estate and partition among the heirs, it was discovered that Bobby’s house was constructed on the portion allocated to his sister, Cathy asked Bobby to demolish his house and vacate the portion alloted to her. In leiu of demolition, Bobby offered to purchase from Cathy the lot portion on which his house was constructed. At that time, the house constructed was valued at P350.000.

1. Can Cathy lawfully ask for demolition of Bobby’s house? (3%)
2. Can Bobby legally insist on purchasing the land? (2%)

VII

Anthony bought a piece of untitled agricultural land from Bert. Bert, in turn, acquired the property by forging carlo’s signature in a deed of sale over the property. Carlo had been in possession of the property for 8 years, declared it for tax purposes, and religiously paid all taxes due on the property. Anthony is not aware of the defect in Bert’s title, but has been in actual physical possession of the property from the time he bought it from Bert, who had never been in possession of the property for one year.

1. Can Anthony acquire ownership of the property by acquisitive prescription? How many more years does he have possess it to acquire ownership? (2%)
2. If Carlo is able to legally recover his property, can he require Anthony to account for all the fruits he has harvested from the property while in possession? (2%)
3. If there are standing crops on the property when Carlo recovers possession, can Carlo appropriate them? (2%)

VIII

Adam, a building contractor, was engaged by Blas to construct a house on a lot which he (Blas) owns. While digging on the lot in order to lay down the foudation of the house, Adam hit a very hard object. It turned out to be the vault of the old Banco de las Islas Filipinas. Using a detonation device, Adam was able to open the vault containing old notes and coins which were in circulation during the Spanish era. While the notes and coins are no longer legal tender, they were valued at P100 million because of their historical value and the coins silver nickel content. The following filed legal claims over the notes and coins:

1. 1. Adam, as finder;
   2. Blas, as owner of the property where they were found;
   3. Bank of the Philippine Islands, as successor-in- interest of the owner of the vault; and
   4. The Philippine Government because of their historical value.
2. Who owns the notes and coins? (4%)
3. Assuming that either or both Adam and Blas are adjudged as owners, will the notes and coins be deemed part of their absolute community or conjugal partnership of gains with their respective spouses? (2%)

IX

The properties of Jessica and Jenny, who are neighbors, lie along the banks of the Marikina River. At certain times of the year, the river would swell and as the water recedes, soil, rocks and other materials are deposited on Jessica’s and Jenny’s properties. This pattern of the river swelling, receding and depositing soil and other materials being deposited on the neighbors’ properties have gone on for many years. Knowing his pattern, Jessica constructed a concrete barrier about 2 meters from her property line and extending towards the river, so that when the water recedes, soil and other materials are trapped within this barrier. After several years, the area between Jessica’s property line to the concrete barrier was completely filled with soil, effectively increasing Jessica’s property by 2 meters. Jenny’s property, where no barrier was constructed, also increased by one meter along the side of the river.

1. Can Jessica and Jenny legally claim ownership over the additional 2 meters and one meter, respectively, of land deposited along their properties?( 2%)
2. If Jessica’s and Jenny’s properties are registered, will the benefit of such registration extend to the increased area of their properties? (2%)
3. Assume the two properties are on a cliff adjoining the shore of Laguna Lake. Jessica and Jenny had a hotel built on the properties. They had the erath and rocks excavated from the properties dumped on the adjoining shore, giving rise to a new patch of dry land. Can they validly lay claim to the patch of land? (2%)

X

Arthur executed a will which contained only: (i) a provision disinheriting his daughter Bernica for running off with a married man, and (ii) a provision disposing of his share in the family house and lot in favor of his other children Connie and Dora. He did not make any provisions in favor of his wife Erica, because as the will stated, she would anyway get ? of the house and lot as her conjugal share. The will was very brief and straightforward and both the above provisions were contained in page 1, which Arthur and his instrumental witness, signed at the bottom. Page 2 contained the attestation clause and the signatures, at the bottom thereof, of the 3 instrumental witnesses which included Lambert, the driver of Arthur; Yoly, the family cook, and Attorney Zorba, the lawyer who prepared the will. There was a 3rd page, but this only contained the notarial acknowledgement. The attestation clause stated the will was signed on the same occasion by Arthur and his instrumental witnesses who all signed in the presence of each other, and the notary public who notarized the will. There are no marginal signatures or pagination appearing on any of the 3 pages. Upon his death, it was discovered that apart from the house and lot, he had a P 1 million account deposited with ABC bank.

1. Was Erica preterited? (1%)
2. What other defects of the will, if any, can cause denial of probate? (2%)
3. Was the disinheritance valid? (1%)
4. How should the house and lot, and the cash be distributed? (1%)

XI

John and Paula, British citizens at birth, acquired Philippine citizenship by naturalization after their marriage. During their marriage the couple acquired substanial landholdings in London and in Makati. Paula bore John three children, Peter, Paul and Mary. In one of their trips to London, the couple executed a joint will appointing each other as their heirs and providing that upon the death of the survivor between them the entire estate would go to Peter and Paul only but the two could not dispose of nor divide the London estate as long as they live. John and Paul died tragically in the London Subway terrorist attack in 2005. Peter and Paul filed a petition for probate of their parent’s will before a Makati Regional Trial Court.

1. Should the will be admitted to probate? (2%)
2. Are the testamentary dispositions valid? (2%)
3. Is the testamentary prohibition against the division of the London estate valid? (2%)

XII

Ernesto, an overseas Filipino worker, was coming home to the Philippines after working for so many years in the Middle East. He had saved P100.000 in his saving account in Manila which intended to use to start a business in his home country. On his flight home, Ernesto had a fatal heart attack. He left behind his widowed mother, his common-law wife and their twins sons. He left no will, no debts, no other relatives and no other properties except the money in his saving account. Who are the heirs entitled to inherint from him and how much should each receive?(3%)

XIII

Raymond, single, named his sister Ruffa in his will as a devisee of a parcel of land which he owned. The will imposed upon Ruffa the obligation of preseving the land and transferring it, upon her death, to her illegitimate daughter Scarlet who was then only one year old. Raymond later died, leaving behind his widowed mother, Ruffa and Scarlet.

1. Is the condition imposed upon Ruffa, to preserve the property and to transmit it upon her death to Scarlet, valid? (1%)
2. If Scarlet predeceases Ruffa, who inherits the property? (2%)
3. If Ruffa predeceases Raymond, can Scarlet inherit the property directly from Raymond? (2%)

XIV

Stevie was born blind. He went to school for the blind, and learned to read in Baille Language. He Speaks English fluently. Can he:

1. Make a will? (1%)
2. Act as a witness to a will? (1%)
3. In either of the above instances, must the will be read to him? (1%)

XV

Eduardo was granted a loan by XYZ Bank for the purpose of improving a building which XYZ leased from him. Eduardo, executed the promissory note (”PN”) in favor of the bank, with his friend Recardo as co-signatory. In the PN, they both acknowledged that they are “individually and collectively” liable and waived the need for prior demand. To secure the PN, Recardo executed a real estate mortgageon his own property. When Eduardo defaulted on the PN, XYZ stopped payment of rentals on the building on the ground that legal compensation had set in. Since there was still a balance due on the PN after applying the rentals, XYZ foreclosed the real estate mortgage over Recardo’s property. Recardo opposed the foreclosure on the ground that he is only a co-signatory; that no demand was made upon him for payment, and assuming he is liable, his liability should not go beyond half the balance of the loan. Further, Recardo said that when the bank invoked compensation between the reantals and the amount of the loan, it amounted to a new contract or novation, and had the effect of extinguishing the security since he did not give his consent (as owner of the property under the real estate mortgage) therto.

1. Can XYZ Bank balidly assert legal compensation? (2%)
2. Can Recardo’s property be foreclosed to pay the full balance of the loan? (2%)
3. Does Recardo have basis under the Civil Code for claiming that the original contract was novated? (2%)

XVI

Dux leased his house to Iris for a period of 2 years, at the rate of P25,000.00 monthly, payable annually in advance. The contract stipulated that it may be renewed for another 2-year period upon mutual agreement of the parties. The contract also granted Iris the right of first refusal to purchase the property at any time during the lease, if Dux decides to sell the property at the same price that the property is offered for sale to a third party. Twenty-three months after execution of the lease contract, Dux sold breach of her right of first refusal. Dux said there was no breach because the property was sold to his mother who is not a third party. Iris filed an action to rescind the sale and to compel Dux to sell the property to her at the same price. Alternatively, she asked the court to extend the lease for another 2 years on the same terms.

1. Can Iris seek rescission of the sale of the property to Dux’s mother? (3%)
2. Will the alternative prayer for extension of the lease prosper? (2%)

XVII

Felipe borrowed $100 from Gustavo in 1998, when the Phil P - US$ exchange rate was P56 - US$1. On March 1, 2008, Felipe tendered to Gustavo a cashier’s check in the amount of P4,135 in payment of his US$ 100 debt, based on the Phil P - US$ exchange rat at that time. Gustavo accepted the check, but forgot to deposit it until Sept. 12, 2008. His bank refused to accepted the check because it had become stale. Gustavo now wants Felipe to pay him in cash the amount of P5,600. Claiming that the previous payment was not in legal tender, and that there has been extraordinary deflation since 1998, and therefore, Felipe should pay him the value of the debt at the time it was incurred. Felipe refused to pay him again, claiming that Gustavo is estopped from raising the issue of legal tender, having accepted the check in March, and that it was Gustavo’s negligence in not depositing the check immediately that caused the check to become stale.

1. Can Gustavo now raised the issue that the cashier’s check is not legal tender? (2%)
2. Can Felipe validly refuse to pay Gustavo again? (2%)
3. Can Felipe compel Gustavo to receive US$100 instead? (1%)

XVIII

AB Corp. entered into a contract with XY Corp. whereby the former agreed to construct the research and laboratory facilities of the latter. Under the terms of the contract, AB Corp. agreed to complete the facility in 18 months, at the total contract price of P10 million. XY Corp. paid 50% of the total contract price, the balance to be paid upon completion of the work. The work stated immediately, but AB Corp. later experienced work slippage because of labor unrest in his company. AB Corp.’s employees claimed that they are not being paid on time; hence, the work slowdown. As of the 17th month, work was only 45% completed. AB Corp. asked for extension of time, claiming that its labor problems is a case of fortuitous event, but this was denied by XY Corp. When it became certain that the contruction could not be finished on time, XY Corp. sent written notice cancelling the contract, and requiring AB Corp. to immediately vacate the premises.

1. Can the labor unrest be considered a fortuitous event? (1%)
2. Can XY Corp. unilaterrally and immediately cancel the contract? (2%)
3. Must AB Corp. return the 50% downpayment? (2%)

XIX

Juliet offered to sell her house and lot, together with all the furniture and appliances therein to Dehlma. Before agreeing to purchase the property, Dehlma went to the Register of Deeds to verify Juliet’s title. She discovered that while the property was registered in Juliet’s name under the Land Registration Act, as amended by the Property Registration Decree, it property, Dehlma told Juliet to redeem the property from Elaine, and gave her an advance payment to be used for purposes of realesing the mortgage on the property. When the mortgage was released, Juliet executed a Deed of Absolute Sale over the property which was duly registered with the Registry of Deeds, and a new TCT was issued in Dehlma’s name. Dehlma immediately took possession over the house and lot and the movables therein. Thereafter, Dehlma went to theAssessor’ s Office to get a new tax declaration under her name. She was surprised to find out that the property was already declared for tax purposes in the name of XYZ Bank which had foreclosed the mortgage on the property before it was sold to her. XYZ Bank was also the purchaser in the foreclosure sale of the property. At that time, the property was still unregistered but XYZ Bank registered the Sheriff’s Deed of Conveyance in the day book of the Register of Deeds under Act. 3344 and obtained a tax declaration in its name.

1. Was Dehlma a purchaser in good faith? (2%)
2. Who as between Dehlma and XYZ Bank has a better right to the house and lot? (2%)
3. Who owns the movables inside the house? (2%)

NOTHING FOLLOWS.