A, was a consistent scholar at a prestigious university enjoying free tuition fees, books, clothing and housing allowances and was given a cash allowance of ₱25,000.00 per month. Due to some family problems, he decided to go back to General Santos City and enrolled at Holy trinity College, but before he could obtain his credentials, he was required to refund the amount of ₱300,000.00 equivalent to the privileges he enjoyed as that was the condition in the scholarship grant. Can he recover the amount?
A)No, because the contract is the law between the parties.
B)No, because of the principle of mutuality of contracts.
C)Yes, because the stipulation is contrary to morals and public policy. (Cui v. Arellano Univ., May 30, 1961. Art. 1306, NCC)
D)No, because of the principle of solution indebiti.

Question

Quizplus · Accepted Answer

The correct answer is C because the stipulation requiring the refund of the benefits received under the scholarship upon leaving the university is considered contrary to morals and public policy, as established in the case of Cui v. Arellano University.

A, Was a Consistent Scholar at a Prestigious University Enjoying