Question

III. PERSONS AND FAMILY RELATIONS

Topic: B. Juridical Persons (Civil Code, arts. 44-47)

Scenario 1:

ABC Corporation, a construction company registered under Philippine laws, entered into a contract with XYZ Corporation to build a commercial building. However, after ABC Corporation completed the construction, XYZ Corporation refused to pay the agreed contract price. ABC Corporation wants to take legal action to recover the payment.

Discuss the legal personality of ABC Corporation as a juridical person under Philippine law and its capacity to sue and be sued in relation to the above scenario.

Scenario 2:

DE Foundation, a non-profit organization established to provide educational grants to underprivileged students, received a significant donation from a philanthropist. However, the foundation's board of trustees decided to use a portion of the donation for personal expenses instead of for the intended beneficiaries. The concerned donor wants to hold the foundation accountable for misusing the funds.

Explain the concept of juridical personality as applied to DE Foundation and discuss the legal consequences of its actions, particularly in relation to the misuse of donated funds.