Discussion about enforcing the penalty


Problem 1: Jordan obligated himself to deliver the best wedding cake he could make to John's wedding day on November 15, 2022.  John already paid ahead Php 5, 000.000 for the cake. In their agreement, there is a penal clause which states that if Jordan cannot deliver the said wedding cake on November 15, 2022, he will be liable to the penalty of Php 1, 000,000.00. When the wedding day came, Jordan failed to deliver the cake because he did not buy any flour and baking soda the day before. On the day of the wedding, John called Jordan to demand on delivering the cake which the latter failed. John immediately called his friend baker Castro who quickly baked a wedding cake for John for free. When John demanded for the payment of the penalty, Jordan refused to pay, reasoning that John is not entitled to the penalty since he did not suffer any damage.

A) Can John be entitled to the penalty? Why?

B) Assuming that John is entitled to the penalty, what needs to be proven by him in order to enforce the penalty? Explain your answer.

Problem 2: Carlos obligated himself to give his only car to Tina on December 25, 2022. Carlos is also given the option to give his only laptop to Tina, instead of this only car on said date. Later, he realized that he does not want Tina to receive his only laptop so he intentionally destroyed his only laptop. When December 25, 2022 came, Tina informed Carlos that she wanted for him to deliver his only laptop to her.

A) Is Tina correct? Why?

B) Is Carlos to be faulted and be liable for the value of his only laptop plus damages in favor of Tina by reason of his act of destroying said laptop prior to the date when the obligation is due? Why?

Problem 3: In November 5, 2022, Marian is obligated to deliver her specific dog, her particular Siamese cat and her only pet to Jason on December 20, 2022. On November 7, 2022, her only pet died due to old age. On the next day, she informed Jason that because her only pet died, she will deliver the specific dog instead. The following day, thereafter, because of her negligence, she failed to feed and provide shelter to her particular Siamese cat, so it died.

A) Is Marian liable for the value of the particular Siamese cat plus damages due to her negligence? Why?

B) Can Jason demand the value of the only pet of Marian since he was denied for its delivery without his fault? Why?

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Business Law and Ethics: Discussion about enforcing the penalty
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