2016 (Civil Law) Bar Exam Questions: Question 10

[Answer/discuss the question below, or see 2016 bar exam Civil Law Instructions; 2016 Labor Law Questions:   12345678910111213141516171819 and 20; See also 2016 Bar Exam: Information, Discussions, Tips, Questions and Results]

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Jerico, the project owner, entered into a Construction Contract with Ivan for the latter to construct his house. Jojo executed a Surety undertaking to guarantee the performance of the work by Ivan. Jerico and Ivan later entered into a Memorandum of Agreement (MOA) revising the work schedule ofIvan and the subcontractors. The MOA stated that all the stipulations ofthe original contract not in conflict with said agreement shall remain valid and legally effective. Jojo filed a suit to declare him relieved of his undertaking as a result ofthe MOA because ofthe change in the work schedule. Jerico claims there is no novation of the Construction Contract. Decide the case and explain. (5%)

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