2016 (Civil Law) Bar Exam Questions: Question 11

[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]

-XI-

Ellen entrusted her title over the lot where she is residing to Patrick, her nephew, for safekeeping because of her poor eyesight. Patrick, a gambler, prepared a Special Power of Attorney empowering him to mortgage the lot. Ellen’s signature was forged. With the help of Julia who represented herself as Ellen, Mega Bank granted a loan to Patrick secured by a mortgage on Ellen’s lot. Due to non-payment, Mega Bank foreclosed the mortgage and was declared the highest bidder. Title was later registered in the name of the bank. When Ellen was notified that she should vacate the premises, she filed a complaint to nullify the loan with mortgage, the auction sale and the title of Mega Bank on the ground that the bank is not a mortgagee in good faith. Decide the case with reasons. (5%)

2 comments

  1. BAR EXAMS QUESTION NO.2

    With regard to an award of interest in the concept of actual and compensatory damages, please state the guidelines regarding the manner of computing legal interest in the following situations:

    [a) when the obligation is breached and it consists in the payment of a sum of money like a loan or forbearance of money; (2.5%)

    [b] when the obligation does not constitute a loan or forbearance of money. (2.5%)

    Consider the issuance of BSP-MB Circular No. 799, which became effective on July 1, 2013.

    SUGGESTED ANSWER:

    (a) The rule is will settled that when an obligation is breached, and it consists of the payments of a sum of money like a loan or forbearance of money, the interest due shall itself earn legal interest from the time it is judicially demanded (BPI Family Savings Bank Inc. vs. First Metro Investment Corporation 429 SCRA 30) when there is no rate of interest stipulated, such as in the present case the legal rate shall be imposed pursuant to Article 2209 of the New Civil Code. In he absence of a stipulated interest rate on a loan due, the legal rate of interest shall be 12% per annum.

    (b) When obligation, not constituting a loan or forbearance of money, is breached, an interest on the amount of damages awarded may be imposed at the discretion of the court at the rate of 6% per annum. No interest, however, shall be adjudged on unliquidated claims or damages except when or until the demand can be established with reasonable certainty.

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  2. BAR EXAMS QUESTION NO. 3

    Romeo and Juliet, both Filipinos, got married. After a few years, Juliet got word from her mother that she can go to the United States for naturalization. Juliet promised she will be back the moment she becomes an American. After sometime, Romeo learned from a friend that Juliet already became a U.S. citizen and even divorced him to marry a wealthy American businessman. Romeo filed a petition before the Regional Trial Court praying that an order be issued authorizing him to remarry pursuant to Article 26 of the Family Code. Decide the petition with reasons. (5%)

    SUGGESTED ANSWER:

    A petition of Romeo before the Regional Trial Court praying that an order be issued authorizing him to remarry pursuant to Article 26 of the Family Code who has the burden of proof, failed to submit competent evidence showing his allegations that his naturalized American wife had obtained a divorse decree and had remarried, Therefore, the petition is granted.

    Under Article 26(2) provides, when a marriage between a Filipino citizen and a foreigner is validly celebrated and a divorse is thereafter validly obtained abroad by the alien spouse shall have capacity to remarry under the Philippine law.

    Article 26 par. 2 of the Family Code only applies to case where at the time of the celebration of the marriage, the parties are a Filipino citizen and a foreigner. The instant case is one where at the time the marriage was solemnized, the parties were two Filipino citizens, but later on, the wife was naturalized as American citizen and subsequently obtained divorse granting her capacity to remarry, and indeed she remarried an American citizen while residing in the U.S.A therefore, the 2nd par. of Article 26 does not apply to the instant case.

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