ESSAY:

TIPS IN ANSWERING:

Know what is being asked. Take your time and read the questions carefully.

Answer in an orderly manner. YES/NO (if applicable) + legal basis (always cite your legal basis) Be direct to the point. Do not put statements which are irrelevant to the question. DO NOT LEAVE ANY QUESTION BLANK.

1) Fidel is already very old, yet he has a mistress who is still very young. His mistress has no stable job of her own unlike his wife, Klay. Fidel is worried about the future of his mistress. Thus, he came up with a plan, that is, he will execute a Contract of Sale in favor of his mistress. But then, since the mistress does not have any money of her own, Fidel sold his property to her at a very low price. His intention really is to enter into a Contract of Donation to the mistress.

a) Is the Contract of Sale absolutely simulated, or relatively simulated? Explain.

b) What is the status of the Contract of Donation? Explain.

2. Does "reverential fear" fall under the category of "undue influence" which vitiates consent? Why or why not?