X brought a house and lot from Y valued at P5M. He paid P3M and for the balance, he executed a promissory note with interest at 10% to be paid within 90 days. ABC Corporation executed a surety for the balance. X failed to pay, hence, ABC paid the amount and sued X for the interest and the principal. X contended that he is not bound due to novation when Y accepted the security. Is X correct?

Related MCQs

• A is indebted to ABC Corporation in the amount of P100M. Despite efforts to collect from A, the latter failed to pay due to business reverses as he has no more assets. In order to maintain a more accurate inventory of the worth of its current assets, ABC Corp. was forced to write-off A’s obligation. One (1) year later, A won the lotto draw in the US in the amount of $100M. Learning of the good luck of A, it demanded for payment, but A refused to pay contending that his obligation was extinguished when it was written-off. Is A correct?
• A and B are married. They are governed by the conjugal partnership of gains. A, the Executive Vice-President of ABC Corp. signed as a surety in a loan secured by the company from Metrobank for the rehabilitation of the company. As business was good after rehabilitation, A was given a house and lot, a brand new caw and raise in his salary. The company was sued due to its failure to pay the loan. Are the properties of A and B liable?
• A is the owner of a parcel of land covered by TCT No. 123 located in a subdivision property being developed by XYZ Corporation. He did not know the exact location of the lot, hence, he consulted the developer who pointed to a lot, hence, he constructed his house. It turned out that it was another lot covered by TCT No. 124. Is A a builder in good faith?
• A built his house on his lot up to the boundary line and opened windows with direct view over the lot of B. Twenty (20) years later, B built his house up to the boundary line of his lot, hence, A filed a complaint enjoining B from building his house up to the boundary contending that he has acquired the easement of light and view by prescription and that B cannot build less than 3 meters from the boundary. Is A correct?
• A entered into a contract of sale over B’s house and lot but since there is a balance which remained unpaid, A executed a mortgage over the house and lot. A failed to pay. Can B rescind the contract?
• A is the owner of a parcel of land, which is a part of a subdivision property being developed by XYZ Corporation. His lot is adjacent to the road belonging to ABC Corporation hence, he used to pass through the road going to the national highway. In 2009, ABC Corporation constructed a fence on its property, thus closing the road. Can A demand the reopening of the road?
• X and Y sold a house and lot to their son valued at P10M for only P3M with the condition that it will be delivered after their death. After their death, should the property be brought to collation?
• A lent money to B in the amount of P3M and executed a mortgage over his house and lot to secure the payment of the obligation with a condition that if he fails to pay, A shall became the owner of the property. Is the stipulation valid?
• A obtained a loan from Metrobank. As security, he delivered and deposit certificate maturing on April 29, 2011. A failed to pay, hence, the bank encashed the deposit certificate. A contended that it is pactum commissorium. Is A correct?
• A called up B that he was selling his house and lot for P10M. Within one (1) hour after B accepted the offer, he invited A for dinner at the Manila Hotel where B paid the dinner in the amount of P5,000.00. They agreed that the P5,000.00 was the downpayment. A receipt for the payment of P5,000.00 for the dinner was issued. When A refused to sell, B sued for specific performance. Is B correct?