Law-on-obligations-all-in-new

LAW ON OBLIGATIONS & CONTRACT CREATED BY:ANONYMOUS Under Quasi contracts, when funeral expenses are borne by the third person, without the knowledge of the relatives who are obliged to give support to the deceased, said relatives must reimburse to the third person, even without claim was made by the third person. Select one: a. True b. False

__________________________is a kind of Prestation which consist of the delivery of a movable or immovable thing, in order to create a real right or for the use of the recipient or for its simple possession or in order to return to its owner. Select one: a. To do b. Not to do c. None of the choices d. To give

Under Quasi-delict, Teachers or Heads of establishment of arts and trades shall be liable for damages caused by their pupils or students or apprentices, as long as they are not in their custody. Select one: a. True b. False

Under Quasi-delict, Guardians are liable for damages caused by minors or incapacitated person who are under their authority and live in their company. Select one:

a. True b. False

__________________________is a kind of Prestation which consist of all kinds of work or services, whether mental or physical. Select one: a. To give b. To do c. None of the choices d. Not to do

Civil action for recovery of civil liability arising from the offense is impliedly instituted with the criminal action except; Select one: a. All of the choices b. offended parties reserves right to institute it separately c. Civil action may proceed to final judgment irrespective of the result of the criminal action and filing of the criminal action does not suspend the civil action. d. The law provides for an independent civil action.

__________________________is a kind of Prestation which consist in abstaining from such act. Select one: a. To give b. To do c. None of the choices d. Not to do

__________________________is a kind of Quasi-contract which states that whoever voluntarily takes charge of the agency or management of the business or property of another, without any

power from the latter, is obliged to continue the same until the termination of the affair and its incidents or to require the person concerned to substitute him, if the owner is in the position to do so. Select one: a. Other quasi contracts b. None of the choices c. Solutio indebiti d. Negotiorum gesto

Under Quasi-delict, the State is responsible in like manner when it acts through a special agent but not when the damage has been caused by the official to whom the task done properly pertains, in which case what is provided in article 2176 shall be applicable. Select one: a. False b. True

The following are The following are kinds of negligence except: Select one: a. Culpa criminal b. Culpa contractual c. Culpa Levis d. Culpa Aquilana ligence except; Select one: a. None of the choices b. culpa contractual c. culpa criminal d. culpa aquilana

Elements of Obligation where in the obligee is bound to perform the prestation . (obligor/debtor) Select one:

a. Passive Subject b. Active Subject c. Form in which obligation is manifested d. Efficient cause

Obligations arising from contracts have the force of law between contracting parties and should be complied with good faith. Select one: a. True b. False

Obligation arising from quasi- delict is demandable not only for one's own acts or omissions but also for those persons for whom one is responsible. Select one: a. Test of negligence b. Liability for fault for others c. Pre contractual obligation d. Diligence of Employers

A ______________________ is a meeting of minds between two persons whereby one binds himself with respect to the other, to give something or to render service. Select one: a. Contract b. Civil Liability c. Laws d. Obligation

An employer may be civilly liable for the quasi delict or crime of his employee.

Select one: a. Pre contractual obligation b. Liability for fault for others c. Diligence of Employers d. Test of negligence

Elements of Obligation where in there is power to demand the prestation or object. (obligee/creditor) Select one: a. Passive Subject b. Form in which obligation is manifested c. Active Subject d. Efficient cause

Crime/s without civil liability are the following except; Select one: a. Civil obligations arising from criminal offense. b. Traffic violation c. Criminal contempt d. Gambling

Elements of negligence are the following except: Select one: a. Duty on the part of the defendant to protect the plaintiff from injury of which the latter complains. b. An injury to the plaintiff through such failure c. Failure to perform such duty as a prudent person. d. A person's conduct expected of a reasonably prudent person acting under similar circumstances.

Would a prudent man, in the position of the person to whom negligence is attributed, foresee harm to the person injured as reasonable consequence of the course about to be pursued? Select one: a. Liability for fault for others b. Diligence of Employers c. Pre contractual obligation d. Test of negligence

Damages can be recovered if when contract is not perfected. Select one: a. Pre contractual obligation b. Diligence of Employers c. Test of negligence d. Liability for fault for others

_________________________ are interests on obligation which have an extra contractual or delictual origin. Select one: a. Usury b. Moratory c. Compensatory d. None of the choices

The following are the exceptions under transmissibility of rights of fulfillment of obligation, except: Select one: a. Not transmissible by law. b. Not transmissible by their very nature (e.g personal rights) c. None of the choices d. There is stipulation of the parties that they are not transmissible , not be easily implied but clearly established or by thevery least, clearly inferable.

No liability for fortuitous events intervene. Select one: a. True b. False

____________________ is contracting for or receiving something in excess of the amount allowed by law for the loan or forbearance of money, good of chattels. It is also taking more interest for the use of money, goods or chattels or credits than the law allows. Select one: a. Moratory b. Usury c. None of the choices

d. Compensatory

If the obligation consist in the payment of a sum of money and the debtors incurs delay, the indemnity of damages, there being no stipulation to the contrary, shall be the payment of interest agreed upon, and in the absence of the stipulation, the legal interest will be ___________percent per annum per Article 2209. Select one: a. 6 b. 8 c. 4 d. None of the choices

The following are primary remedies in case of breach except: Select one: a. Action for performance b. Action for damages c. Accion Pauliana d. Action for rescission

Under kinds of prestation on obligation not to do, the following are the duties of the obligor except: Select one: a. To shoulder the cost to undo what should not have been done. b. To demand reimbursement to those who benefitted. c. To pay the damages d. Not to do what should not be done

The following are the duties of obligor under Obligation to Give, except: Select one:

a. To deliver the thing itself b. None of the choices c. To deliver the thing itself d. To preserve thing in due care

The following are examples of 'Acts of God' except; Select one: a. earthquake b. fires c. rebellion d. epidemic

Under kinds of prestation on obligation to do, the duty of the obligor to pay damages as obliged to do something fails to do it , the will be no action for compliance because that would be involuntary servitude as prohibited by the constitution. Select one: a. False b. True

The following are the requisites of fortuitous event under extinguishment of liability in case of breach except: Select one: a. Possible to foresee the event which constitute caso fortuito and avoidable b. Occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner c. Obligor must be free from any participation in the aggravation of the injury resulting to the creditor d. Cause of the unforeseen and unexpected occurrence or the failure of the debtor to comply with his obligation must be independent of human will.

Mora means _________________. Select one: a. Negligence b. Obligation c. Delay d. Prestation

In reciprocal obligations, there can only be delay in negative obligations (not to give or not to do) not in positive obligations (to give or to do). Select one: a. True b. False

In bilateral contracts, fulfillment must not be simultaneous or reciprocal. Select one: a. True b. False

Creditor should make demand before debtor incurs delay. Select one: a. True b. False

The following are the primary remedies of creditor in case of breach except: Select one: a. Action for performance b. Accion Subrogatoria c. Action for damages

d. Action for rescission

Demand may be in any form, provided it can be proved. Burden of proof of demand on creditor. Select one: a. True b. False

Default ends from the moment creditor demands the performance of obligation. Select one: a. False b. True The following are exceptions of demand except: Select one: a. Law so provides b. Express stipulation c. Period is not the controlling motive d. Demand is useless

Under Alternative Obligations, the following are the effects of loss or impossibility of one or all prestations or when the debtor shall lose the right of choice, when among the prestations whereby he is alternatively bound only one is practicable except: Select one: a. None of the choices b. Converted to simple and pure obligation c. Creditor cannot claim for damages because it's the debtor's call. d. The impossibility of the act must not be due to creditor's act

When fulfillment of obligation is no longer possible, rescission takes place. Select one: a. False b. True

Under Obligations with Penal clause, the following are the effects of penal clause except: Select one: a. Creditor can collect other damages in addition to penalty, if the debtor is guilty of fraud in the fulfillment of obligation. b. Creditor cannot demand both performance and penalty at the same time. c. Substitute for indemnity for damages and payment of interest. d. Not exempt debtor for performance.

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Question text The following are ways to test divisibility of obligations, except: Select one: a. Provisions of law affecting the prestation b. Definite things c. Nature of the thing d. Will or intention of the parties.

___________________________is kind of conditional of obligation which depends upon the will of the contracting parties, in the power of one party to realize or prevent it. Select one:

a. Potestative b. Positive c. Negative d. Suspensive

Even though the object or service may be physically divisible but the obligation is indivisible if Select one: a. provided by law b. definite things c. All of the choices d. intended by both parties

When only one prestation is agreed upon, but the obligor may render another substitution, the obligation is ________________________. Select one: a. Solidary b. Facultative c. Alternative d. Joint The following are the requisites of rescission except: Select one: a. Obligor who performed chose rescission over fulfillment or performance is impossible. b. Partial fulfillment c. One of the creditors failed to comply with what is incumbent of him d. The breach is substantial

The following are requisites of obligation with a period except: Select one:

a. Certain b. Future c. Retroactive d. Possible

___________________________ is called when specifically stated. Select one: a. Judiciary b. Implied c. Express d. Legal

Under kinds of Penal clause as to purpose, _______________________ substitutes the damages suffered by the creditor; the matter of damages is generally resolved, and it represents the estimate of the damages that a party might suffer from non performance of the obligation, thereby avoiding the difficulties of proving such damages. Select one: a. Reparatory b. Legal c. Punitive d. Conventional

General Rule: Nullity of penal clause does not nullify affect the principal ______________________. Select one: a. Demand b. Obligation c. Damages d. None of the choices

________________________ conditions as to possibility which are those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends on them. Select one: a. Negative b. Impossible c. Casual d. Mixed

____________________________ is conditional type of obligation where an obligation arises, but if the condition does not happen, obligation does not come to existence. Select one: a. Potestative b. Suspensive c. Pure d. Resolutory

Under kinds of period or term as to source, Article 1197 Par 3, in every case, the court shall determine such period as may under circumstances have been contemplated by both parties. Once fixed by the courts, the period cannot be changed by them. Select one: a. False b. True

Under obligations with Penal clause, the penalty may be enforced only when it is ______________________ in accordance with the provision under Article 1226 par2. Select one: a. stipulated b. fulfilled c. demandable d. performed

General rule: Nullity of principal obligation, also nullify ____________________. Select one: a. Penal clause b. Damages c. None of the choices d. Fulfillment

___________________ is a kind of indivisible obligation even the object or service may be divisible, an obligation is indivisible if so provided by law or intended by parties. Select one: a. Natural b. Legal c. Active d. Passive There is solidarity liability only when obligation expressly so states or when the law or when the nature of the obligation requires solidarity. Select one: a. True b. False

___________________ determines the existence of an obligation. Select one: a. Past event b. Period or term c. Condition d. Demand

In general, the following can be made or authorized to receive payment except: Select one:

a. Third party, even in good faith b. Creditor's/ His successor in interest c. Any person authorized to receive it d. Creditor/person in whose favor obligation was constituted

Under payment/performance, the delivery of promissory notes payable to order or bills or exchange or other mercantile documents shall produce effect of payment only when they are ___________________, or when through the fault of the creditor they have been impaired. Select one: a. Cashed b. Delivered c. None of the choices d. Endorsed Under Estoppel, when the obligee accepts the performance, knowing its incompleteness or irregularity and without expressing any protest or objection, the obligation is deemed _______________________. Select one: a. All of the choices b. Accomplished c. Complied with d. Extinguished

General rule: Creditor cannot be compelled to receive partial prestations as well as Debtor cannot be compelled to pay partial payments. Select one: a. False b. True

Partial payment is not allowed except: Select one: a. Debt is partly liquidated and partly unliquidated. b. All of the choices

c. Contrary stipulation d. When there are several subject/parties are bound under different terms and conditions.

The following are requisites of a valid payment except: Select one: a. None of the choices b. Person to whom payment is made c. Things to be paid d. Person who pays

The following are the effects if a third person payment which is not an interested party with debtor's consent, except: Select one: a. Legal subrogation/novation -Payor can exercise all the rights of the creditor arising from the very obligation itself whether against the debtor or third person b. Third person is not entitled to full reimbursement c. Creditor may refuse to accept payment d. None of the choices

In general, what is to be paid in an obligation? Select one: a. None of the choices b. Debt c. Undue object/service d. Prestation due

The following are requisites of condonation, except: Select one: a. None of the choices b. The renunciation of the debt must be gratuitous or without any equivalent or consideration. c. Debts must be existing and demandable at the time remission made

d. The debtor must accept the remission

In general rule, payment to a wrong third party is valid but obligation is not extinguished even if in good faith of the debtor. Select one: a. True b. False

In Under payment by Cession, the debtor may cede or assign his property to his creditors in payment of his debts unless _______________________________. Select one: a. None of the choices b. Initiated by the debtor and accepted by creditor. c. Insolvency of the debtor. d. There is stipulation to the contrary.

general, creditor can refuse valid tender of payment. Select one: a. False b. True

As a general rule, partial payment is not allowed, creditor cannot be compelled to receive partial prestations same way debtor cannot be compelled to give partial payments except: Select one: a. Expressly stipulated to that effect b. Debt is partly liquidated and partly unliquidated c. All of the choices d. When there are several subjects/parties are bound under different terms and conditions

_________________________ property is alienated to the creditor in satisfaction of a debt in money shall be governed by laws of sales. Select one: a. Dation in payment b. None of the choices c. Payment by cession d. Consignation

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Question text The following are the third persons or interested parties who can pay to extinguish obligation except: Select one: a. Sureties b. Co-debtors c. Debtor d. Guarantors

The most natural way to extinguish obligation. Select one: a. Impossibility of Performance b. Condonation c. Payment or Performance d. Novation

If the debt produces interest, payment to the principle should have not deemed have been made until the interest has been covered.

Select one: a. True b. False

Under obligation to give, when a minor 18-21 entered into a contract without parental consent , voluntarily pays the sum of money and delivers a fungible thing in fulfillment of an obligation, there shall be no right to recover the same from the oblige who has spent or consumed it in good faith. Select one: a. True b. False

_____________________________ is a kind of payment when a debtor is forced by means of judicial proceeding either to comply with the prestation or pay indemnity. Select one: a. Integrity b. Abnormal c. Identity d. Normal

Under Quasi contract, consider a pizza that is delivered to the wrong address. The pizza has already been paid for. If the individual does not correct the delivery man and instead keeps the pizza, the court system could issue a quasi contract that would require the Individual to pay back the amount of the pizza to the party that paid for the pizza. The contract is used to prevent any party from benefiting from the situation at the other party's expense; the restitution required under the contract is to make the situation____________. Select one: a. Unfair b. None of the choices. c. Fair

Under obligations, an active subject, also known as the________________, who has the power to demand the prestation Select one: a. Debtor b. Obligor c. Complainant d. Obligee or creditor

Mr. Chan broke a window of Ms Pat while playing pingpong. The accident would have not happened had Mr Chan played far from the property of Ms Pat. In this case, Mr Chan has no obligation to pay the damage caused to Ms. Pat by his act although there are no pre-existing sources of obligation. Select one: a. True b. False

Sheila bought a refrigerator from May but Sheila did not pay the refrigerator. If after demand, Shiela still did not pay, May can sue Shiela in Court either to demand payment or for recovery of the refrigerator. Select one: a. True b. False

________________________ means deceit or fraud. Select one: a. Culpa b. Delict c. Dolo d. Damage

The following are the rights of the creditor under obligations to give under generic thing except: Select one: a. To ask for the performance of the obligation b. Entitlement of fruits/interests from the time the obligation to deliver arises c. To recover damages in case of breach of obligation d. To ask that the obligation be complied with at the expense of the debtor. Every person criminally liable is also civilly liable. Select one: a. True b. False

An obligation is a legal duty, however created, the violation of which may become the basis of an action of law. Select one: a. False b. True

The following are the requisites of Quasi Delict except: Select one: a. Such act or omission causes damage to another. b. There are pre-existing contractual relations between the parties. c. Such act or omission is caused by fault or negligence. d. There must be an act or omission

If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; It is understood that the thing is lost when it __________________________. Select one: a. Perishes

b. All of the choices c. Disappears in such a way that its existence is unknown or it cannot be recovered. d. Goes out of the commerce of man

The following crimes are exempted from civil liability under acts punishable by law except: Select one: a. Gambling b. Traffic violations c. Criminal contempt d. None of the choices

An accounting firm and a computer shop are two separate businesses that do not have any connection. If the accounting firm buys 20 sets of computers for P400,000.00 from the computer shop, then a legal connection (juridical relation) is created between the two enterprises. With a perfected written contract of sale, the accounting firm may demand from the computer shop the ______________________. Select one: a. Delivery of 15 sets of computers only. b. Delivery of the 20 sets of computers. c. Not to deliver the 20 sets of computers d. None of the choices.

A ___________________is an agreement between two parties without previous obligations to one another that has been created and legally recognized by the court system. Under this contract, neither involved party is expected to create such an agreement. Select one: a. Ex-Delictu b. Quasi delict c. Quasi contract d. None of the choices

Manufacturers and processors of food stuffs, drinks, toilet articles and similar goods shall be liable for death or injuries caused by any noxious or harmful substances used, although no contractual relation exists between them and the consumers. Select one: a. True b. False

Under subsidiary liability of a crime, innkeepers, tavern keepers or any other persons or corporation, shall not be civilly liable for crimes committed in their establishment. Select one: a. True b. False

Obligations arising from contracts have the force of law between the contracting parties and should be complied with in bad faith. Select one: a. True b. False

The following are exempting circumstances, do not incur criminal liability but not exempt from civil liability except: Select one: a. Imbecile b. Acting under compulsion of an irresistible force c. Insane person acting in lucid interval d. Person under 9 years of age

Commission of crimes causes not only moral evil but also material damage. Select one:

a. False b. True

Jenny was driving under the influence of alcohol at a speed of 120 kph. Jenny hit the car of Neil, causing damage to the car which required P100,000.00 to repair. Neil was also physically injured and incurred medical expenses in the amount of P100,000.00. Requisites of Quasi Delict: Jenny drove and hit Neil's car which constitutes ____________________ as a requisite of quasi delict. Jenny was negligent for driving the car above the speed limit and under the influence.The collision injured Neil and damage to Neil's car. There is no contract between Jenny and Neil. Select one: a. There must be an act or omission. b. Such act or omission is caused by fault or negligence. c. Such act or omission causes damage to another. d. None of the choices

Obligation arising from Law or 'Obligation ex lege' is imposed by law itself and must be expressly or impliedly set forth and cannot be presumed. Select one: a. False b. True

_________________________is the result of injury (loss, hurt, harm) Select one: a. Dolo b. Culpa c. Damage d. Delict

___________________________ is a kind of Novation as to effect where only a modification or change in some principal conditions of the obligation.

Select one: a. Implied b. Total c. Mixed d. Partial

_________________________ obligation is based on equity and natural justice. Select one: a. Civil b. Natural c. Positive law d. All of the choices

A contract of sale and a contract of loan are examples of ________________________. Select one: a. Prestation to give b. Prestation to do c. Prestation not to do d. None of the choices

Legal Subrogation is ___________________. Select one: a. Not presumed b. None of the choices c. With agreement d. Presumed

One of the requisites of prestation is that it must be possible, if not then the obligation is ___________________. Select one: a. Legal b. None of the choices c. Void d. Demandable

A car distributor placed an order for 20 luxury cars from a car maker company provided that the latter deliver the goods within 12 months. It was expressly agreed and stipulated in writing that full payment depended on the prompt delivery of the goods. If the cars are delivered within the agreed period, the car company acquires to right to demand full payment for the purchase and its obligation to deliver is extinguished. Conversely, if the cars are not delivered after the expiration of the period, does the obligation to pay by the car distributor's extinguished? Select one: a. No as per conditional obligation. b. Yes as per pure obligation. c. Yes as per conditional obligation. d. No as per pure obligation.

The receipt of the principal by the creditor, without reservation with respect to interest, shall give rise to the presumption that the interest has not been paid. Select one: a. True b. False

The relativity as a characteristic of contract will take effect only between parties, their assignments and heirs. Select one: a. False b. True

There must be mutuality between the parties in contracts based on their essential equality, to which is repugnant to have one party bound by the contract leaving the other free there from. Select one: a. True b. False

A contract is to be judged by its character, courts will look into substance and not to the mere form of the transaction. Select one: a. False b. True

Stipulations in favor of third persons may demand its fulfillment provided the acceptance is made after revocation. Select one: a. False b. True

In contracts creating real rights, third persons who come into possession of the object of the contract are bound hereby, subject to the provisions of the Mortgage Law and Land Registration Laws. Select one: a. False b. True

Obligations arising from the contract have the force of law between contracting parties. Select one: a. False

b. True

Contracts are perfected by mere consent, and from that moment, the parties are bound not only to fulfillment of what has been expressly stipulated but not to consequences Select one: a. True b. False

The determination of the performance maybe left to a third person, whose decision is binding even if not known to both parties. Select one: a. True b. False

Mortgage, insurance and bonds are examples of natural elements of a contract. Select one: a. False b. True

The fixing of a price may be determined by one of the contracting party for the sale to be perfected. Select one: a. False b. True

____________________is a characteristic of a contract which constitutes the law between parties. Select one: a. Mutuality

b. Relativity c. Obligatory force d. Freedom

The following are essential elements of a contract except: Select one: a. Consent b. Promise c. Object d. Cause

___________________means one party bears the lion's share of the risk. Select one: a. Pactum commisorum b. None of the choices c. Pactum de non alienado d. Pactum leonina

The following must not be stipulated in the contract, except: Select one: a. contrary to morals b. contrary to good customs c. contrary to traditions d. contrary to law

____________________is a characteristic of a contract which is binding only upon the parties and their successors. Select one:

a. Obligatory force b. Freedom c. Mutuality d. Relativity Check

___________________ is where courts must find that the contract contravenes some established interest in the society Select one: a. Contrary to public policy b. Contrary to good customs c. Contrary to law d. Contrary to morals

The following is a classification of a contract according to form except: Select one: a. gratuitous b. common c. special d. Informal

____________________means automatic foreclosure. Select one: a. Pactum leonina b. Pactum commisorum c. Pactum de non alienado d. None of the choices

___________________ tends only to assure and pave the way for the celebration of a contract is actually made, the rights and obligations are not yet determined. Select one: a. None of the choices b. Imperfect promise c. Perfected promise d. Contracts

A contract where consent is given through mistake, violence, intimidation, undue influence is voidable. Select one: a. False b. True

The particular motive of the parties entering into a contract are the same from the cause thereof. Select one: a. False b. True

The object of the obligation and object of the contract created thereby need not be identical. Select one: a. False b. True

Under defective causes, lesion or inadequacy of cause is valid unless fraud or undue influence is valid. Select one: a. False b. True

In impossibility of things and services, the impossibility must be actual and contemporaneous with the making of the contract and not subsequent. Select one: a. True b. False

A qualified acceptance constitutes a counter offer. Select one: a. False b. True

If the debtor knew the impossibility of things and services, he will be liable for damages. Select one: a. True b. False

Acceptance made by a letter or telegram does not bind the offerer except from the time it came to his knowledge. The contract in such case is presumed to have been entered in the place where the offer was made. Select one: a. True b. False

Absence of cause and unlawful cause produces no effect whatever. The cause is unlawful is it is in contrary to law, morals, good customs, public order and public policy. Select one: a. True b. False

Although the cause is not stated in the contract, it is not presumed to that it exists and illegal. Select one: a. True b. False

_______________________is the thing, right or service which is the subject matter of the obligation arising from the contract Select one: a. Cause b. Object c. Consent d. Motive

_____________________________of the law excuses no one from compliance therewith Select one: a. Error b. Influence c. Ignorance d. Mistake

The following are impossible things except: Select one: a. Beyond the ordinary strength of power of man b. Not susceptible of existing c. None of the choices d. Outside the commerce of man

The following cannot give consent to a contract except: Select one: a. Insane during lucid interval b. Unemancipated minors c. Deaf-mutes who do not know how to write d. Demented persons

________________________are all kinds of things and interests whose alienation or free exchange is restricted by law or stipulation, which parties cannot modify at will. Select one: a. All rights not intramissible b. Outside the commerce of man c. Within the commerce of man d. All services not contrary to law

There is _________________ when through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to. Select one: a. Fraud b. Undue influence c. Reasonable fear d. None of the choices

___________________________is a wrong or false notion about such matter, a belief in the existence of some circumstance, a fact or event which in reality does not exist Select one: a. Undue influence b. Violence c. Fraud d. Mistake

The following may not be the objects of a contract except: Select one: a. Impossible things b. Inderterminable as to their kind c. Within the commerce of man d. Contrary to laws, good customs, public policy and public order

_______________________ does not affect the validity of the contract. Select one: a. Cause b. Object c. Consent d. Motive

An exception in the form of contracts is when the law requires that a contract be in order it may be valid or enforceable. Select one: a. False b. True

If mistake, fraud, inequitable conduct or accident has prevented to have a meeting of the minds by both parties, the remedy is reformation. Select one: a. False b. True

A contract to be effective as Cessation must not appear in a public document. Select one: a. True b. False

If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper.

Select one: a. True b. False

When mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be annulled. Select one: a. True b. False

Contracts shall be obligatory, in whatever form they may have been entered into, provided all essential requisites for their validity are present. Select one: a. False b. True

The power to administer a property must appear in a public document Select one: a. True b. False

When there is meeting of minds but the true intention is not expressed, a relief of reformation of the instrument may be sought by one of the parties. Select one: a. True b. False

All other contracts where the amount does not exceed five hundred pesos must appear in writing.

Select one: a. False b. True

If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument. Select one: a. True b. False ________________________ is no impediment to the reformation of an instrument. Select one: a. Court b. Statute of Frauds c. All of the choices d. Equity

If the law requires a document or other special form, as in the acts and contracts enumerated in the contracts must appear in public document, the contracting parties may _____________________each other to observe that form, once the contract has been perfected. Select one: a. Disregard b. Exempt c. Refrain d. Compel

All other contracts where the amount exceeds five hundred pesos must appear in _________________, even private one. Select one: a. Writing

b. None of the choices c. General circulation d. Newspaper

What action may be taken when the true intentions of the parties are not expressed in the instrument? Select one: a. Annulment b. Enforcement c. None of the choices d. Reformation

The following are cases where no reformation is allowed except: Select one: a. When real agreement is valid. b. Oral contracts c. Will d. Simple donations

If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right to repurchase, __________________________of the instrument is proper. Select one: a. Annulment b. None of the choices c. Enforcement d. Reformation The following are causes of reformation of instrument except: Select one: a. Mutual, mistake of fact, clear and convincing proof.

b. Mistake by 3rd persons where due to ignorance, lack of skill, negligence, bad skill of drafter. c. None of the choices d. Unilateral, one party is in bad faith, the party in good faith may seek reformation of contract.

As a general rule, contracts shall be ___________________ in whatever form they have entered into, provided all essential requisites for their validity are present. Select one: a. Unenforceable b. None of the choices c. Obligatory d. Void Under form of contracts, when the law requires that a contract be in some form in order that it may be valid and enforceable or that a contract be proved in a certain way, that requirement is ________________and indispensable. Select one: a. Partial b. Absolute c. Conditional d. Limited

The following are reasons to annul a contract when it has prevented the meeting of the minds of the parties, except: Select one: a. Accident b. Fraud c. Equitable conduct d. Mistake A simple mistake of account shall give rise to its _________________________. Select one:

a. validity b. invalidity c. correction d. none of the choices

When a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be______________________. Select one: a. rescind b. reformed c. annulled d. none of the choices

Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law. Select one: a. False b. True

No contract may be entered into upon future inheritance except in cases expressly authorized by law. Select one: a. False b. True

The following may not be reformed, except: Select one: a. simple donations

b. none of the given choices c. will d. when the real agreement is void

An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party after acceptance is conveyed. Select one: a. True b. False

_____________________ is a unilateral proposition which one party makes to the other for the celebration of the contract Select one: a. Offer b. None of the choices c. Acceptance d. Counter-offer

All services which are not contrary to law, morals, good customs, public order or public policy may likewise be the object of a contract. Select one: a. True b. False

In acceptance of offer with a period, acceptance beyond the time fixed is not legally an acceptance but an old offer. Select one: a. False b. True

Acceptance made by letter or telegram does bind the offerer except from the time it came to his knowledge. The contract, in such a case, is presumed to have been entered into in the place where the offer was made. Select one: a. False b. True

No one may contract in the name of another without being authorized by the latter, or unless he has by law a right to represent him. Select one: a. True b. False

A contract entered into in the name of another by one who has no authority or legal representation, or who has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it has been executed, before it is revoked by the other contracting party. Select one: a. False b. True

Contracts agreed to in a state of drunkenness or during a hypnotic spell are ____________________. Select one: a. vitiate b. voidable c. invalid d. valid

There is __________________________ when, through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to. Select one: a. intimidation b. fraud c. fear d. violence The parties are free to determine the content of the contract insofar as it does not contravene the mandatory provisions of both the law and good morals. Select one: a. True b. False

All things which are not outside the commerce of men, including future things, may be the object of a contract. Select one: a. False b. True When one of the parties is unable to read, or if the contract is in a language not understood by him, and mistake or fraud is alleged, the person enforcing the contract must show that the terms thereof have been fully explained to the former. Select one: a. False b. True An offer made through an agent is accepted from the time acceptance is communicated to him. Select one: a. True b. False

An absolutely simulated or fictitious contract is _____________________. Select one: a. none of the choices b. voidable c. valid d. void Simulation of a contract may be ________________________. Select one: a. qualified or limited b. absolute or relative c. none of the choices d. conditional or complicated

Misrepresentation made in good faith is not fraudulent but may constitute ________________. Select one: a. none of the choices b. error c. culpable violation of the law d. consent

The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves ________________________. Select one: a. fraudulent b. None of the choices c. voidable d. valid

Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a ____________________. Select one: a. none of the choices b. counter affidavit c. counter strike d. counter offer

Mortgage, guaranty and bond are examples of _______________________ elements of a contract Select one: a. Accidental b. All of the choices c. Natural d. Essential

The determination of the performance may be left to a third person, whose decision shall not be binding until it has been made known to both contracting parties. Select one: a. True b. False

When the offer or acceptance made during a hypnotic spell, it becomes: Select one: a. none of the choices b. void c. valid d. voidable Contracts without cause, or with unlawful cause, produce no effect whatever. The cause is unlawful if it is contrary to law, morals, good customs, public order or public policy. Select one:

a. True b. False

The following are characteristics of a contract, except: Select one: a. Relativity b. Consensuality c. Disagreement d. Obligatory force

______________________ means mere unaccepted offer. Select one: a. none of the choices b. imperfected promise c. contract d. perfected promise

Words ought to be subservient to the intent, not the intent to the word. Select one: a. False b. True

The usage or custom of the place shall be disregarded in the interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established. Select one: a. True b. False

If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be valid. Select one: a. True b. False

When you interpret a contract you must look for the contractual intent. Select one: a. True b. False

In order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered. Select one: a. True b. False

Contracts of Adhesion shall be resolved against the party who prepared the contract and in favor of the one who merely adhered to it. Select one: a. False b. True

Rescissible contract that has caused a particular damage to one of the parties or to a third person and which for equitable reasons may be set aside even if valid. Select one: a. True b. False

The various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which may result from all of them taken jointly. Select one: a. False b. True

The interpretation of obscure words or stipulations in a contract shall favor the party who caused the obscurity. Select one: a. False b. True

If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control. Select one: a. True b. False The usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established. Select one: a. True b. False

_________________contract that cannot be enforced unless ratified in the manner provided by law. Select one: a. Adhesion b. Rescissible c. Voidable d. Unenforceable

_______________________contract shall be resolved against the party who prepared the contract and in favor of the one who merely adhered to it. Select one: a. Voidable b. Rescissible c. Adhesion d. Unenforceable

Words which may have different significations shall be understood in that which is most in keeping with the nature and object of the contract. Select one: a. False b. True

The interpretation of obscure words or stipulations in a contract shall favor the party who caused the obscurity Select one: a. True b. False

The various stipulations of a contract shall be interpreted ________________, attributing to the doubtful ones that sense which may result from all of them taken jointly. Select one: a. partly b. together c. independent d. separately

In order to judge the intention of the contracting parties, their contemporaneous and _____________________________acts shall be principally considered. Select one: a. former b. preceding c. subsequent d. previous

The contract with absolute nullity and produces no effect as if it had never been executed or entered into. Select one: a. True b. False

If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be null and void. Select one: a. True b. False

________________ contract which is an absolute nullity. Select one: a. Voidable b. Valid c. Rescissible d. Non existent

Contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them may be rescinded. Select one: a. TRUE b. FALSE

Contracts which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof may not be rescinded. Select one: a. TRUE b. FALSE

Under rescissible contracts, whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them. Select one: a. FALSE b. TRUE

The action to claim rescission must be commenced within five years. Select one: a. FALSE b. TRUE

The action for annulment of contracts shall not be extinguished when the thing which is the object thereof is lost through the fraud or fault of the person who has a right to institute the proceedings. Select one: a. TRUE b. FALSE

An obligation having been annulled, the contracting parties shall restore to each other the things which have been the subject matter of the contract, with their fruits, and the price with its interest, except in cases provided by law. Select one: a. FALSE b. TRUE

Rescission shall be only to the extent necessary to cover the damages caused. Select one: a. TRUE b. FALSE

Voidable contracts may not be rescinded. Select one: a. FALSE b. TRUE

These contracts under voidable are binding, unless they are annulled by a proper action in court. They are susceptible of ratification. Select one: a. FALSE b. TRUE

Ratification does not require the conformity of the contracting party who has no right to bring the action for annulment of contracts Select one: a. FALSE

b. TRUE

Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also __________________________. Select one: a. Ratification b. Reformation c. Rescissible d. Voidable Under voidable contracts, When the defect of the contract consists in the incapacity of one of the parties, the incapacitated person is not obliged to make any ___________________except insofar as he has been benefited by the thing or price received by him. Select one: a. penalty b. restitution c. None of the choices d. non payment

Those contracts where one of the parties is incapable of giving consent to a contract; Select one: a. Ratification b. Rescissible c. Voidable d. Reformation _______________________ extinguishes the action to annul a voidable contract Select one: a. Reformation b. Voidable c. Rescissible d. Ratification

The prescription period to file for action for annulment of contract is ______________years. Select one: a. 4 b. 3 c. 5 d. 6

___________________________is an injury suffered by one of the parties by virtue of contract that is disadvantageous to him. Select one: a. None of the choices b. Alienation c. Lesion d. Loss

________________________contracts which are in between valid and void. Select one: a. Reformation b. Ratification c. Voidable d. Rescissible

Those contracts where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud. Select one: a. Ratification b. Reformation c. Rescissible

d. Voidable

In onerous transfer, if there is good faith, the contract may be rescinded. Select one: a. True b. False

Those contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them. Select one: a. Reformation b. Rescissible c. Voidable d. Ratification

A contract which is the direct result of a previous illegal contract is also void and inexistent. When the agreement is not illegal per se but is merely prohibited, and the prohibition by the law is designated for the protection of the plaintiff, he may, if public policy is thereby enhanced, recover what he has paid or delivered. Select one: a. TRUE b. FALSE

a. TRUE b. FALSE

Those contracts that are expressly prohibited or declared void by law are unenforceable. Select one:

a. FALSE b. TRUE

Those contracts which are absolutely simulated or fictitious are inexistent or void from the beginning. Select one: a. FALSE b. TRUE

Those contracts entered into in the name of another person by one who has been given no authority or legal representation, or who has acted beyond his powers are inexistent or void from the beginning. Select one: a. TRUE b. FALSE

When the law sets, or authorizes the setting of a minimum wage for laborers, and a contract is agreed upon by which a laborer accepts a lower wage, he shall be entitled to recover the deficiency. Select one: a. TRUE b. FALSE

Those contracts which contemplate an impossible service are inexistent or void from the beginning. Select one: a. FALSE b. TRUE

In a contract where both parties are incapable of giving consent, express or implied ratification by the parent, or guardian, as the case may be, of one of the contracting parties shall give the contract the same effect as if only one of them were incapacitated. Select one: a. FALSE b. TRUE

In case of a divisible contract, if the illegal terms can be separated from the legal ones, the latter may be enforced. Select one: a. FALSE b. TRUE

Contracts that are ratified, where both parties are incapable of giving consent to a contract are unenforceable. Select one: a. TRUE b. FALSE

The following are kinds of unenforceable contracts, except: Select one: a. Entered into the name of another person by one who has no authority or no legal representation or acted beyond his powers. b. Declares inefficiency which contract already carries in itself. c. Both parties are incapable of giving consent to the contract. d. Do not comply with the statute of Frauds which agreements are unenforceable unless in written memorandum and subscribed by the party charged.

The following are characteristics of void contracts, except: Select one:

a. Void from the beginning b. Defects on their effects c. Cannot be confirmed or validated d. Produces no effect

Under Void contracts, when the act is unlawful but does not constitute a criminal offense at the same time both parties are at fault,_____________________________ Select one: a. Both parties may recover what they have given by virtue of the contract. b. All of the choices c. Both parties may file an action against each other d. Neither party may recover what he has given by virtue of the contract.

Under Void contracts, when the act is unlawful and constitutes a criminal offense and both parties are guilty,_________________________. Select one: a. both parties will be free from prosecution b. both parties will be prosecuted. c. All of the choices d. both can file an action in courts

_____________________________is one that by universally recognized standards is inherently or by its very nature bad or improper, immoral or contrary to good conscience. Select one: a. Illegal per se b. None of the choices c. fraud d. pari delicto

Contracts which are simulated or fictitious are ____________________. Select one: a. Inexistent b. Rescissible c. Reformation d. Voidable

_______________________prevent fraud and perjury in the enforcement of obligations depending for their evidence upon the unassisted memory of witnesses by requiring certain enumerated contracts and transactions to be evidenced by a writing signed by the party to be charged. Select one: a. Written memorandum/note b. Purpose of Statutes c. Statute of Frauds d. Governing rules in unauthorized contracts

Under Void contracts, action to declare nullity is necessary because______________________________. Select one: a. susceptible of ratification. b. None of the choices c. nobody can take the law into his own hands d. it has prescription.

_______________________ any person may invoke the inexistence of the contract whenever juridical effects founded thereon are asserted against him. Select one: a. accion subrogatoria b. accion reinvindicatoria c. accion pauliana d. None of the choices

Those contracts whose cause, object or purpose is contrary to law, morals, good customs, public order, or public policy. Select one: a. Inexistent b. Rescissible c. Reformation d. Voidable _____________________________is one that by universally recognized standards is inherently or by its very nature bad or improper, immoral or contrary to good conscience. Select one: a. fraud b. pari delicto c. None of the choices d. Illegal per se

Those contracts whose cause, object or purpose is contrary to law, morals, good customs, public order, or public policy are _________________. Select one: a. Voidable b. Rescissible c. Inexistent d. Reformation

___________________________contracts whose cause or object did not exist at the time of transaction. Select one: a. Rescissible b. Void

c. Voidable d. Unenforceable

___________________________contracts whose objects are outside the commerce of man. Select one: a. Rescissible b. Unenforceable c. Void d. Voidable

___________________________contracts as by its effect is valid until annulled by a competent court. Select one: a. Rescissible b. Unenforceable c. Void d. Voidable

___________________________contracts as by its nature of the defect, consent is vitiated by mistake or error, violence and intimidation, undue influence, fraud or misrepresentation. Select one: a. Voidable b. Rescissible c. Void d. Unenforceable

Under Void contracts, when the act is unlawful and constitutes a criminal offense and when only one is guilty, the __________________ may demand of what he has given without obligation to comply with his promise.

Select one: a. innocent party b. both parties c. party at fault d. None of the choices

___________________________contracts as by its nature of the defect, when cause, object or purpose of contract are contrary to law, good customs, morals, public order or public policy. Select one: a. Unenforceable b. Void c. Rescissible d. Voidable

____________________________ is the determination of the meaning of the terms or words used by the parties in their written contract. Select one: a. None of the choices b. Forms of a contract c. Interpretation of contracts d. Essential requisites of a contract Suppose a stipulation or word written contract is susceptible of various interpretations. What interpretation or meaning should be given to it? Select one: a. The one who has least reciprocity of interest in onerous contracts b. All of the choices c. The one which would be effectual. d. Resolved in favor the party who prepared it.

________________________ where it restore to each other things which have been the subject matter of the contract including its fruits and the price with interest. Select one: a. Mutual Restitution b. Effects of Annulment c. Effects of Unenforceable contracts d. None of the choices

___________________________means both are at fault. Select one: a. pari delicto b. Illegal per se c. fraud d. None of the choices ___________________________contracts cannot be cured. Select one: a. Voidable b. Void c. Unenforceable d. Rescissible ___________________________contracts can be cured by ratification or prescription. Select one: a. nenforceable b. Void c. None of the choices d. Rescissible

_______________________prevent fraud and perjury in the enforcement of obligations depending for their evidence upon the unassisted memory of witnesses by requiring certain enumerated contracts and transactions to be evidenced by a writing signed by the party to be charged. Select one: a. Governing rules in unauthorized contracts b. Statute of Frauds c. Purpose of Statutes d. Written memorandum/note

Under voidable contracts, When the defect of the contract consists in the incapacity of one of the parties, the incapacitated person is not obliged to make any ___________________except insofar as he has been benefited by the thing or price received by him. Select one: a. penalty b. non payment c. restitution d. None of the choices

The action for rescission is ______________________; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same. Select one: a. main b. principal c. primary d. subsidiary

_________________ cleanses the contract from its defect from the moment it was constituted. Select one: a. Effects of Annulment b. None of the choices c. Effects of Unenforceable contracts

d. Mutual Restitution

___________________________contracts as by its effect is valid but cannot be enforced by a proper action in court. Select one: a. Unenforceable b. Void c. Rescissible d. Voidable

___________________________contracts as by its nature of the defect refer to things in litigation without the knowledge and approval of litigants or competent judicial authority. Select one: a. Void b. Voidable c. Unenforceable d. Rescissible

___________________________contracts as by its nature of the defect entered by a debtor who is in a state of insolvency like contracts entered in fraud of creditors Select one: a. Void b. Voidable c. Unenforceable d. Rescissible

___________________________contracts as by its nature of the defect, declared by law to be the subject of rescission. Select one:

a. Void b. Unenforceable c. Voidable d. Rescissible

Under Void contracts, when the act is unlawful and constitutes a criminal offense and both parties are guilty,_________________________. Select one: a. both parties will be free from prosecution b. both can file an action in courts c. All of the choices d. both parties will be prosecuted.

___________________________contracts as by its effect does not create rights and cannot impose obligation. Select one: a. Unenforceable b. Void c. Rescissible d. Voidable

____________________ are descriptive of statutes which requires certain classes of contracts to be in writing. Merely regulates the formalities of the contract necessary to render it enforceable. Select one: a. Written memorandum/note b. Governing rules in unauthorized contracts c. Statute of Frauds d. Purpose of Statutes

___________________________contracts can be cured by ratification, acknowledgement, acceptance or confirmation. Select one: a. Unenforceable b. Rescissible c. Voidable d. Void

_________________ contracts are in between void and valid. Select one: a. Voidable b. Annullable c. Unenforceable d. Rescissible

In onerous transfer, if there is good faith, the contract may be rescinded. Select one: a. False b. True

_______________________ are contracts resolved against the party who prepared it and in favor of the one who merely adhered to it. Select one: a. Gratuitous contracts b. defective contracts c. Onerous contracts d. Adhesion contracts

In interpretation of contracts, what must prevail?

Select one: a. conditions b. intentions of the parties c. None of the choices d. terms

ObliCon Finals When bilateral contracts are vitiated with vices of consent, they are rendered Voidable When the thing deteriorates with the debtor's fault, the creditor may choose one of the following: Rescission (cancellation) of the obligation with indemnity for damages This happens when the creditor makes a demand and the obligor fails to deliver the thing. mora solvendi

Tony enters into a contract of sale with Sharon who paid the purchase of a motorcycle unit. Tony did not deliver the motorcycle unit. Identify the juridical tie in the statement as an essential requisite of an obligation. Obligation to deliver __________________________ is the remedy allowed by law by means of which a written instrument is amended or rectified so as to express or confirm the real agreement or intention when by reason of mistake, fraud, inequitable conduct or accident, the intention fails to express such in agreement or intention. Reformation Facts: Cabaliw was the second wife of Benigno. During their marriage, they bought 2 parcels of land. They had a daughter named Soledad. Benigno abandoned his wife Cabaliw, thus the latter filed an action in court for support. The Court ordered Benigno to pay her P75 a month.However, Benigno did not pay and instead sold their property to his son-in-law, Soterro. The transaction was done without Cabaliw's consent. Prior to the sale, Soterro already knew that there was a judgment rendered against his fatherinlaw but proceeded to buy the property anyway. When Cabaliw found out, she instituted an action along with her daughter to recover the properties.

Issue: Is there a presumption of fraud? Yes, Soterro knew about the decision against Benigno, but proceeded with the purchase. If Eden sold to Yvonne a parcel of land but the land already has a residential building which is not mentioned in the agreement, will annulment be the remedy for this? No, Reformation will be the remedy because there is meeting of minds by both parties however by mistake the parties true intention was not reflected in the agreement. X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father. Unwilling to do so, X's heirs filed an action for specific performance against Y. Will their action prosper? No, after more than 6 years, the action to enforce the verbal agreement has already elapsed. Contracts take effect only between the parties or their assigns and heirs, except where the rights and obligations arising from the contract are not transmissible by their nature, by stipulation, or by provision of law. In the latter case, the assigns or the heirs are not bound by the contracts. This is known as the principle of _______________________. Relativity of contracts. ________________ is an essential element of a contract which is more on the proximate purpose that the contracting parties have in view at the time of entering into a contract. cause Jean sold her condominium unit to Jane 'including all its contents'. In the unit there is an antique chair belonging to Susan which Susan agreed to sell to Jean. Will the chair be sold along with the unit? All of the choices Various stipulations of a contract shall be interpreted together. True The duty to repair damages due to negligence is an example of obligations arising from __________________. Acts or omissions punished by law

Below are examples of obligations arising from the law except: To return money paid by mistake Can future inheritance be the subject of a contract of sale? No, since the seller owns no inheritance while his predecessor lives. Sonny borrowed P1,000,000 from Joy and agreed that in case of non-payment on the date stipulated,

Sonny's house and lot would be sold to Joy for the amount of P1,000,000. Is the stipulation valid? Yes, if Sonny does not pay , he should sell the house and lot for P1,000,000 to Joy. The agreement is not contrary to law. Fernando executed a will, prohibiting his wife Marina from remarrying after his death, at the pain of the legacy of P100 million in her favor becoming a nullity. But a year after Fernando's death, Marina was so overwhelmed with love that she married another man. Is she entitled to the legacy, the amount of which is well within the capacity of the disposable free portion of Fernando's estate? No, since such prohibition is authorized by law and is not repressive; she could remarry but must give up the money. Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter about it. In any event, the deed of sale expressly stipulated that X was not liable for hidden defects. Does Y have the right to demand from X a reimbursement of what he spent to repair the engine plus damages? Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y. G gave Php 100,000 to H who signed a receipt stating: "This is to acknowledge payment of G in the amount of Php100,000". G later complains the he receives nothing from H for the Php 100,000. Is H bound to return the Php 100,000? The law presumes that G must have received a service from H and that the same is lawful. If G claims otherwise, he must prove his allegation that H is bound to return the 100,000 to G. Roy and Carlos both undertook a contract to deliver a boat docked in Subic to Sam in Manila. Before they could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall not exempt Roy and Carlos from their obligation. Owing to the loss of the motor boat, such obligation is deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary? Joint since the conversion of their liability to one of indemnity for damages made it joint. Jeff sold to Philip his car worth 1M for only Php500,000. There is no question that the purchase price is grossly inadequate. Does Jeff have the right to have the sale annulled? The contract of sale is valid, because they have both consented with the amount at the time they entered into a contract. Facts: The Dela Cruz sisters were the aunts of Dolores Rongavilla. They borrowed P2,000 from the Rongavillas to have their rooftop repaired. Later, petitioners went back to their aunts to have them sign a contract. Taking advantage of their lack of education, the sisters were made to believe that such document, typewritten in English, was just for the acknowledgment of their debt. After four years, petitioners asked their aunts to vacate the land subject to litigation claiming that she and her husband were the new owners. After verifying with the Registry of Deeds, the aunts were surprised that what they have signed was actually a deed of sale. Their land title was cancelled and the ownership was

transferred to their nephews. The land was mortgaged with the Cavite Development Bank. Issue: Was the deed of sale void? Yes, because there is fraud and absence of consent Russel owed Mary the sum of P1, 000.00. By mistake, Russel paid P2, 000.00. Mary has the obligation to return the P1,000.00 excess because there was payment by mistake. True Architect Velasco designed and supervised the house construction of Mrs Reyes. The parties failed to agree beforehand the professional the professional fee of Architect Velasco. How much is Mrs Reyes bound to pay Architect Velasco? All of the choices The following are essential requisites of a contract, except: motive Upon the proposal of a third person, a new debtor substituted the original debtor without the latter's consent. The creditor accepted the substitution. Later, however, the new debtor became insolvent and defaulted in his obligation. What is the effect of the new debtor's default upon the original debtor? The original debtor is freed of liability since novation took place and this relieved himof his obligation. The following are elements of an obligation, except: consent Demand is not necessary to incur delay when: Time is the controlling motive _____________________ extinguishes the action to annul a voidable contract Ratification The prescription period to file for action for annulment of contract is ______________years. 4 Those contracts where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud. Voidable Those contracts that are expressly prohibited or declared void by law are unenforceable. FALSE Contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them may be rescinded. TRUE In onerous transfer, if there is good faith, the contract may be rescinded. False The following are kinds of unenforceable contracts, except: Declares inefficiency which contract already carries in itself.

_______________________cleanses the contract from all its defects from the moment it was constituted. Ratification ObliCon Q8 _______________________prevent fraud and perjury in the enforcement of obligations depending for their evidence upon the unassisted memory of witnesses by requiring certain enumerated contracts and transactions to be evidenced by a writing signed by the party to be charged. Purpose of Statutes Contracts which are simulated or fictitious are __________________. Inexistent Those contracts which are absolutely simulated or fictitious are inexistent or void from the beginning. True Those contracts which contemplate an impossible service are inexistent or void from the beginning. True A contract which is the direct result of a previous illegal contract is also void and inexistent. True Those contracts whose cause, object or purpose is contrary to law, morals, good customs, public order, or public policy. Inexistent _______________________evidence of agreement and is used to show the intention of the parties. Written memorandum/note ___________________________means both are at fault. Pari delicto ObliCon Quiz 7 (2Takes)

Contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them may be rescinded. TRUE _____________________ extinguishes the action to annul a voidable contract Ratification Ratification does not require the conformity of the contracting party who has no right to bring the action for annulment of contracts True

All other contracts specially declared by law to be subject to rescission. Rescissible Rescission shall be only to the extent necessary to cover the damages caused. True Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also ________________________. Rescissible _______________________cleanses the contract from all its defects from the moment it was constituted. Ratification In onerous transfer, if there is good faith, the contract may be rescinded. False Under rescissible contracts, whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them. True Contracts which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof may not be rescinded. False

The action for rescission is ____________________; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same. Subsidiary ___________________________is an injury suffered by one of the parties by virtue of contract that is disadvantageous to him. Lesion The prescription period to file for action for annulment of contract is ______________years. 4 An obligation having been annulled, the contracting parties shall restore to each other the things which

have been the subject matter of the contract, with their fruits, and the price with its interest, except in cases provided by law. True Those contracts where one of the parties is incapable of giving consent to a contract; Voidable The action to claim rescission must be commenced within five years. False Those contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them. Rescissible Additional Source Quiz 6 In order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered True The procedure of reformation of instrument shall be governed by _____________________of the Supreme Court. Rules of court Contracts shall be obligatory, in whatever form they may have been entered into, provided all essential requisites for their validity are present. True

If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be valid. False If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument. True When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order the instrument be ___________________. Reformed

All other contracts where the amount exceeds five hundred pesos must appear in _______________, even private one. Writing All other contracts where the amount does not exceed five hundred pesos must appear in writing. False

ObliCon Quiz 06 If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be null and void. True The usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established. True If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right to repurchase, __________________________of the instrument is proper. Reformation Contracts of Adhesion shall be resolved against the party who prepared the contract and in favor of the one who merely adhered to it. True Under form of contracts, when the law requires that a contract be in some form in order that it may be valid and enforceable or that a contract be proved in a certain way, that requirement is ________________and indispensable. Absolute When one of the parties brought in action to enforce the instrument, he cannot subsequently ask for its reformation. True If the law requires a document or other special form, as in the acts and contracts enumerated in the contracts must appear in public document, the contracting parties may _____________________each other to observe that form, once the contract has been perfected.

Compel The following are reasons to annul a contract when it has prevented the meeting of the minds of the parties, except: Equitable Conduct The particular motive of the parties entering into a contract are the same from the cause thereof. False In impossibility of things and services, the impossibility must be actual and contemporaneous with the making of the contract and not subsequent. True Absence of cause and unlawful cause produces no effect whatever. The cause is unlawful is it is in contrary to law, morals, good customs, public order and public policy True Acceptance made by a letter or telegram does not bind the offerer except from the time it came to his knowledge. The contract in such case is presumed to have been entered in the place where the offer was made. True If the debtor knew the impossibility of things and services, he will be liable for damages. True There is _______________ when through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to. Fraud The following are impossible things except: d. None of the choices The following are the requisites of consent, except: Impaired The object of the obligation and object of the contract created thereby need not be identical. False

Although the cause is not stated in the contract, it is not presumed to that it exists and illegal. False The following may not be the objects of a contract except: a. Within the commerce of man The following may not be the objects of a contract except: Within the commerce of man _____________________ contracts are essentially agreements to give donations. Gratuitous

_______________________is the thing, right or service which is the subject matter of the obligation arising from the contract Object _____________________________of the law excuses no one from compliance therewith Ignorance A qualified acceptance constitutes a counter offer. True _____________________ does not affect the validity of the contract. Motive The following cannot give consent to a contract except: Insane during lucid interval