Reference no: EM133215981

Case/ Scenario

Cassidy Sahagun, a 24-year-old Filipino residing at San Antonio, Zambales and acting as the mayor of the said town. Mayor Sahagun entered into the following contract during her term as the mayor:

July 20, 2022. Sahagun entered into a contract with Abacan Office, Inc for the purchase of new 20 computers of municipal employees. The unit cost of each computer is 25,422.95. Delivery date is on January 12, 2023.

Before the contract signing, different companies participated in the bidding conducted by the municipal office to which each companies demonstrate the actual products and explain the specifications of each product.

July 21, 2022. Sahagun entered into a contract for purchase of a commercial lot located in San Felipe Zambales. The lot is inside a subdivision owned by San Felipe Developer Inc. Contract term follows: Price 30,000,000; payment term - Option Money - 10% of down payment; down payment - 22% of contract price payable in 12 months and remaining balance payable in 10 yrs. The contract is personal contract of the mayor and the fund used comes in her own fund and not of the municipal.

July 25, 2022. A resident of San Antonio offers the mayor for a sale of his property. The amount is generously discounted due to the mayor's position. The mayor humbly rejects the offer and no contract has been made between the two.

July 26, 2022. Sahagun tie the knot with her long-term boyfriend. Both agreed to subject the asset to pre-nuptial agreement. Sometime after the marriage, her husband sold his land to Sahagun for 5,000,000. Deed of sale and title were delivered to the hands of the mayor on the same date of payment.

August 1, 2022. The mayor sold thru her agent, her dwelling to Andrea Recaido for 3,000,000 with terms 20% down payment and remaining balance payable in 4yrs. (4 annual installment). There are two mortgages entered into: 1. Mortgage on the subject of the contract; 2. Mortgage on the car of Recaido.

August 5, 2022. The mayor initiated a drive for the native aetas on the town. The drive is to outreach with them and give them their necessities. The mayor ordered 5,000 cavans of rice, 5,000 boxes of assorted groceries, 20,000 pairs of slippers and clothes, 20,000 food packs and 50 gallons of fruit juice. All amounts are personally shouldered by the mayor. Delivery of which are due on August 10,2022, the day of the program. Contract price follows: rice - 2000; groceries - 4000; slippers - 200; juice - 150, food packs -- 150. Fair value: rice - 1900; groceries - 3600; slippers - 130; juice - 140, food packs -- 180.

August 29, 2022. Mae Manuel, friend of the Sahagun sold her car for 4,000,000 with terms 2,000,000 down payment and 2,000,000 payables in 5 installments. Delivery was made with a term that the usage of car will still be with Mae as long as she is in the country and will be given to Sahagun on September 20, 2022, flight date, and Manuel will pay for the rent of 50,000. Sahagun already paid for the down payment. Mortgage made follows: 1. To the subject - car and 2. To the watch of Sahagun.

September 1, 2022. Sahagun bought a brand-new cellphone worth 35,000 online. The seller promised to deliver the cellphone on September 5, 2022. The mayor asks the seller to gift wrap the item because this is used as a birthday gift to her husband.

Questions:

Question 1. When did Sahagun get the right to the fruits of the computer to be delivered by Abacan Office?

Question 2. What kind of right does she has on the delivery date of the computers?

Question 3. Based on the way Abacan Office offer their product, what kind of sale has been entered into?

Question 4. In case there had been a difference between the products presented and explained to that of delivered by Abacan, what is the remedy available to mayor?

Question 5. In case the computers were destructed before perfection of the contract, what is the status of sales?

Question 6. What law covers the contract of Sahagun with San Felipe Developer Inc?

Question 7. Compute for the monthly installment of down payment (transaction with San Felipe).

Question 8. Compute for the monthly installment after down payment (transaction with San Felipe).

Question 9. In case there is default on payment of the 18th and 19th monthly installment, compute for the cash surrender value (transaction with San Felipe).

Question 10. In case, she defaulted on 50th and 51st monthly installments, compute for the grace period (transaction with San Felipe).

Question 11. In case, she defaulted on 58th and 59th monthly installments, compute for the cash surrender value (transaction with San Felipe).

Question 12. In case, she defaulted on the 7th and 8th monthly installments and given a grace period of 60 days. After 60 days, the developer called and informed the mayor of the cancellation of the contract. After 30 days from the call, the mayor did not make any more actions. Is the cancellation final? (transaction with San Felipe)

Question 13. How frequent can we used the right to grace period in an installment sale of immovable property?

Question 14. What kind of incapacity does the mayor has toward the property of her people and her town of jurisdiction?

Question 15. In the contract entered into with Recaido, what will be the status of the contract if the instrument made is only a private instrument and the agent's authority is public instrument?

Question 16. In case of default on payment, can Recto Law be applied? (refer to transaction with Recaido)

Question 17. On August 10, 2022, 5,000 cavans of rice were stocked in a warehouse near the venue of the program. The supplier gave the key of the warehouse to the mayor, what kind of delivery is present?