2016 (Civil Law) Bar Exam Questions: Question 9

[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]

-IX-

Butch got a loan from Hagibis Corporation (Hagibis) but he defaulted in the payment. A case for collection of a sum of money was filed against him. As a defense, Butch claims that there was already an arrangement with Hagibis on the payment of the loan. To implement the same, Butch already surrendered five (5) service utility vehicles (SUVs) to the company for it to sell and the proceeds to be credited to the loan as payment. Was the obligation of Butch extinguished by reason of dacion enpago upon the surrender ofthe SUVs? Decide and explain. (5%)

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