Smith was approached by a man who introduced himself as Brown of Brown & Co. Brown was not known to Smith, but Smith asked Dun & Bradstreet for a credit report and obtained a very favorable report on Brown. He thereupon sold Brown some expensive gems and billed Brown & Co. “Brown” turned out to be a clever jewel thief, who later sold the gems to Brown & Co. for valuable consideration. Brown & Co. was unaware of “Brown’s” transaction with Smith. Can Smith successfully sue Brown & Co. for either the return of the gems or the price as billed to Brown & Co.?

Explain Subcontracting?

under the NCC, what are the different acts or omissions of the obligor or debtor which will result in the breach of the obligation for which he can be held liable for damages?

Arlene, a minor, buys a stereo from Savannah and signs a promissory note in the amount of $500 payable to Savannah within six months to cover the cost of the stereo. Savannah indorses the promissory note and transfers it to Alvin as payment for Alvin painting Savannah's house. When Alvin tries to collect the note from Arlene at the end of the six months, if Arlene refuses to pay: Alvin will be successful in collecting the payment because he is a holder in due course. Alvin will be successful because he is not a holder in due course. Alvin will be unsuccessful in collecting the payment even though he is a holder in due course.

Mark Bradshaw, an agent for National Foundation Life Insurance Co. (NFLIC), tried to sell a health insurance policy to Bobby Reed. Bradshaw told Reed that his health insurance coverage would begin upon signing some forms and paying the first premium. On January 7, Reed signed but did not read the forms, which included language stating that Reed understood that Bradshaw could not change any NFLIC policy or make any policy effective, that the policy would not be effective until actually issued by NFLIC, and that it could take up to two weeks for Reed’s application to be processed and the policy issued. NFLIC received Reed’s application, including his payment for the first premium, on January 12. On January 19, NFLIC called Reed’s home and was informed he had a heart attack on January 15. NFLIC declined to issue the policy to Reed. On what grounds did Reed sue Bradshaw? Was Reed’s suit against Bradshaw successful?

A.  1. X, Y, and Z, co-owners, sold a inverter air-condition unit to A. They solidarity bound themselves to deliver the aircon unit in March 30. Through the fault of Y, the aircon unit was completely destroyed . Give the rights and obligations of the parties. B.  1. Joe, Nicolas, and Dante obliged themselves jointly to deliver to Ricky a particular racing horse on April 1. Their agreement which was made known to Ricky is that they will contribute the amount in buying the particular horse. However, the horse was not delivered on the date due because of failure of Nicolas to give his share of the purchase price. State the rights and obligations of the parties. 2. Dindo binds himself to pay his P20,000 loan in four (4) equal monthly installments. Is the obligation of Dindo divisible or indivisible? C. 1. Jaevis promised to deliver to Kyle a breeding cow. Their contract contains a penal clause that in the case of non-fulfillment, Jaevis Shall pay a penalty of P10,000. Jaevis wants to juts…

Stein, a mechanic, and Beal, a life insurance agent, entered into a written contract for the sale of Stein’s tractor to Beal for $6,800 cash. It was agreed that Stein would tune the motor on the tractor. Stein fulfilled this obligation and on the night of July 1 telephoned Beal that the tractor was ready to be picked up upon Beal’s making payment. Beal responded, “I’ll be there in the morning with the money.” On the next morning, however, Beal was approached by an insurance prospect and decided to get the tractor at a later date. On the night of .July 2, the tractor was destroyed by fire of unknown origin. Neither Stein nor Beal had any fire insurance. Who must bear the loss? Why?

John Torniero was employed by Micheals Jewelers, Inc. (Micheals).  During the course of his employment, Torniero stole pieces of jewelry, including several diamond rings, a sapphire ring, a gold pendant, and several loose diamonds.  Over a period of several months, Torniero sold individual pieces of the stolen jewelry to G&W Watch and Jewelry Corporation (G&W).  G&W had no knowledge of how Torniero obtained the jewels.  Torniero was arrested when Micheals discovered the thefts.  After Torniero admitted that he had sold the stolen jewelry to G&W, Micheals attempted to recover it from G&W.  G&W claimed title to the jewelry as a good faith purchaser for value. Micheals challenged G&W’s claim to title in court.  Who wins?  Explain your reasoning.

Maia wrote a check that said "Pay to the order of Kevin Mathews $10.97." The next line of the check stated, "One thousand ninety-seven dollars." In applying the rules of interpretation, how much should the drawee pay? a. Nothing; when the instrument is ambiguous it is declared non-negotiable. b. $10.97; numbers control over words. c. One thousand, ninety-seven dollars, or $1,097.00. Words control over numbers. d. Parol evidence would be needed to determine the purpose of the check.

Eileen Murphy often cared for her elderly neighbor, Thomas Kenney. He paid her $25 per day for her help and once gave her a bank certificate of deposit worth $25,000. She spent the money. Murphy alleged that shortly before his death, Kenney gave her a large block of shares in three corporations. He called his broker, intending to instruct him to transfer the shares to Murphy’s name, but the broker was ill and unavailable. So Kenney told Murphy to write her name on the shares and keep them, which she did. Two weeks later Kenney died. When Murphy presented the shares to Kenney’s broker to transfer ownership to her, the broker refused because Kenney had never endorsed the shares as the law requires, that is, signed them over to Murphy. Was Murphy entitled to the $25,000? To the shares?