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Law on Obligations and Contracts

Is a branch of private law under the civil law system of rules that organizes and regulates the rights and duties, arising between persons within society.

de leon

accounting

adjective law

domingo

bulgarian

ballada

case digest

law of obligations

legal obligations

procedural law

contract obligations

mandatory overtime

article 1156

house and lot

judge

government

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.

  • False
  • 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they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof may not be rescinded.

  • a. FALSE
  • b. TRUE

The following are essential requisites of a contract, except:

  • cause
  • objector prestation
  • motive
  • consent

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

  • To deliver the thing itself
  • To preserve thing in due care
  • None of the choices

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.

  • True
  • False

The following are characteristics of a contract, except:

  • Disagreement
  • Relativity
  • Obligatory force
  • Consensuality

The following are primary remedies in case of breach except:

  • Action for damages
  • Accion Pauliana
  • Action for rescission
  • Action for performance

A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud is voidable.

  • invalid
  • valid
  • voidable
  • vitiate

Under Estoppel, when the obligee accepts the performance, knowing its incompleteness or irregularity and without expressing any protest or objection, the obligation is deemed _______________________.

  • a. Complied with
  • b. All of the choices
  • c. Extinguished
  • d. Accomplished

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
  • Tony
  • Motorcycle unit
  • Sharon

__________________________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.

  • Other quasi contracts
  • Solutio indebiti
  • None of the choices
  • Negotiorum gesto

Real contracts, such as deposit, pledge and Commodatum, are not perfected until the delivery of the object of the obligation.

  • False
  • True

___________________ power belonging to a person over specific thing, without a passive subject individually determined against whom such rights may be personally exercised.

  • Correlative Right
  • Inherent Right
  • Real Right
  • Personal Right

___________________________is a kind of compensation as to origin when decreed by court in a case where there is a counterclaim like defendant is the creditor of the plaintiff for an unliquidated amount, sets up his credit as a counterclaim against the plaintiff and his credit is liquidated by judgment, thereby compensating it with the credit of the plaintiff.

  • a. Judiciary
  • b. Voluntary Conventional
  • c. Legal
  • d. Facultative

Under obligations with Penal clause, the penalty may be enforced only when it is ______________________ in accordance with the provision under Article 1226 par2.

  • performed
  • stipulated
  • demandable
  • fulfilled

______________________________ is a unilateral proposition which one party makes to the other for the celebration of the contract.

  • Cause
  • Object
  • Consent
  • Offer

__________________________ is a juridical necessity to give, to do or not to do.

  • Obligation
  • Art. 1159
  • Art. 1158
  • Contracts

__________________________is a kind of Prestation which consist in abstaining from such act.

  • Not to do
  • To give
  • To do
  • None of the choices

This happens when the creditor makes a demand and the obligor fails to deliver the thing.

  • mora solvendi
  • dolo
  • culpa aquilana
  • mora accipiendi

Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owned, without specifying which lot it was, for the price of P1 million. Later, the parties could not agree which of five lots Lino owned to sell to Ramon. What is the standing of the contract?

  • Rescissible.
  • Void.
  • Unenforceable.
  • Voidable.

____________________is a characteristic of a contract wherein validity and performance cannot be left at the will of one of them.

  • Freedom
  • Relativity
  • Mutuality
  • Obligatory force

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.

  • a. FALSE
  • b. TRUE

Under Void contracts, action to declare nullity is necessary because______________________________.

  • None of the choices
  • it has prescription.
  • nobody can take the law into his own hands
  • susceptible of ratification.

The following are essential elements of a contract except:

  • Cause
  • Consent
  • Object
  • Promise

When a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be______________________.

  • a. none of the choices
  • b. rescind
  • c. annulled
  • d. reformed

The following may not be reformed, except:

  • simple donations
  • when the real agreement is void
  • will
  • none of the given choices

Impossible things or services can be the object of contracts.

  • True
  • False

A contract is to be judged by its character, courts will look into substance and not to the mere form of the transaction.

  • False
  • True

_______________________is the thing, right or service which is the subject matter of the obligation arising from the contract

  • Motive
  • Cause
  • Consent
  • Object

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.

  • False
  • True

The prescription period to file for action for annulment of contract is ______________years.

  • a. 6
  • b. 3
  • c. 5
  • d. 4

Prescription of action for annulment-after prescription, contract ____________________.

  • can no longer be set aside
  • can be waived
  • can be ratified
  • None of the choices

When mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be annulled.

  • False
  • True

The duty to pay a loan by virtue based on an agreement is an example of obligations arising from ____________________.

  • Law
  • Quasi delicts
  • Contracts
  • Quasi contracts

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
  • Suffer the deterioration of the thin.
  • None of the choices
  • Mutual restitution

The following crimes are exempted from civil liability under acts punishable by law except:

  • a. None of the choices
  • b. Criminal contempt
  • c. Traffic violations
  • d. Gambling

__________________________is a kind of Prestation which consist of all kinds of work or services, whether mental or physical.

  • Not to do
  • None of the choices
  • To do
  • To give

________________________are all kinds of things and interests whose alienation or free exchange is restricted by law or stipulation, which parties cannot modify at will.

  • a. All services not contrary to law
  • b. All rights not intramissible
  • c. Outside the commerce of man
  • d. Within the commerce of man

Ervin sold his Toyota Car to Janice under a written contract of sale. What Janice thought Ervin was selling was his Hyundai Car. Can Ervin ask for the reformation of the contract against the objection of Janice who is agreeable for the sale of the Toyota Car?

  • No reformation because no meeting of minds as consent was vitiated by mistake.
  • None of the choices.
  • Ervin can ask for the reformation of the contract due to the mutual mistake even though Janice agreed to receive the Toyota Car.
  • No reformation because the contract is not valid for the object to deliver must be determinate as to its kind.

A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples. What are the rights and obligations of the buyer?

  • He can cancel the whole transaction since the seller violated the terms of their agreement.
  • He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples.
  • He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them anyway.
  • He can accept all 6,000 apples and pay the seller at P20 per apple.

The following are kinds of Negligence except;

  • culpa aquilana
  • None of the choices
  • culpa contractual
  • culpa criminal

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?

  • Yes, Annulment is recommended because there is no meeting of minds for both parties.
  • 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.
  • None of the choices.
  • No, the agreement is void for the parties, because it creates fraud not correctly expressing the terms of the agreement.

Law as a source of obligation - The law may impose an obligation on a business. These law-based obligations are never presumed. There must be a legal provision which serves as the basis. Necessarily, the demandable obligations are only those expressly provided by the law.

  • False
  • True

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.

  • primary
  • subsidiary
  • principal
  • main

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.

  • TRUE
  • 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 to repurchase, __________________________of the instrument is proper.

  • None of the choices
  • Annulment
  • Reformation
  • Enforcement

Those contracts whose cause, object or purpose is contrary to law, morals, good customs, public order, or public policy.

  • a. Voidable
  • b. Inexistent
  • c. Reformation
  • d. Rescissible

Contracts agreed to in a state of drunkenness or during a hypnotic spell are ____________________.

  • a. valid
  • b. invalid
  • c. vitiate
  • d. voidable

There is solidarity liability only when obligation expressly so states or when the law or when the nature of the obligation requires solidarity.

  • False
  • True

That is, the happening of the event which constitutes the condition. In other words, the fulfillment of which will extinguish an obligation (or right) already existing.

  • Suspensive
  • positive condition
  • facultative condition
  • Condition subsequen or Resolutory

The interpretation of obscure words or stipulations in a contract shall favor the party who caused the obscurity

  • True
  • False

___________________________contracts as by its nature of the defect refer to things in litigation without the knowledge and approval of litigants or competent judicial authority.

  • Unenforceable
  • Void
  • Voidable
  • Rescissible

___________________________is a fear occasioned by the threat must be reasonable and well grounded.

  • None of the choices
  • Reasonable fear
  • Undue influence
  • Fraud

Contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them may be rescinded.

  • FALSE
  • 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.

  • a. None of the choices
  • b. Undue influence
  • c. Fraud
  • d. Reasonable fear

How payment is made? A debt shall not be understood to have been paid unless the thing or service which the obligation has beencompletely delivered or rendered as the case may be.

  • False
  • True

verba intentione non e contradebent inservare means _______________________________.

  • their contemporaneous and subsequent acts shall be principally considered.
  • words ought to be subservient to the intent, not the intent to the word.
  • None of the choices
  • general things are to be understood in their general sense.

The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains, may not appear in public document.

  • False
  • True

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

  • True
  • 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.

  • together
  • independent
  • partly
  • separately

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 ____________________.

  • a. none of the choices
  • b. counter offer
  • c. counter affidavit
  • d. counter strike

Contract is perfect when the offeror or counter offeror learn about the acceptance.

  • a. True
  • b. False

General Rule: Nullity of penal clause does not nullify affect the principal ______________________.

  • Obligation
  • None of the choices
  • Demand
  • Damages

The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves ________________________.

  • voidable
  • fraudulent
  • None of the choices
  • valid

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.

  • True
  • False

___________________________contracts as by its nature of the defect is by representation if the absentees when the later suffers by lesion of more than 25% of the value of the thing.

  • Void
  • Rescissible
  • Unenforceable
  • Voidable

The following are elements of an obligation, except:

  • passive subject
  • consent
  • juridical or legal tie
  • object

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).

  • False
  • True

Damages can be recovered when contract is not perfected if withdrawal of the offer must be without any illegitimate cause.

  • False
  • True

When bilateral contracts are vitiated with vices of consent, they are rendered

  • rescissible.
  • void.
  • unenforceable.
  • voidable.

When there is unilateral mistake, the uninjured party may ask for reformation.

  • True
  • False

In interpretation of contracts, what should be followed? Its terms or the intention of the parties? Why?

  • Neither terms or intention because it is the meaning of the words in the contract.
  • The terms of the contract because the terms are created after identifying their intention.
  • The intention of the parties because their will has the force of law between them.
  • All of the choices.

Facts: The municipal council of Cavite by Resolution No. 10, leased to Rojas some 70 or 80 square meters of Plaza Soledad, on condition that she pay rent quarterly in advance according to the schedule fixed in Ordinance No. 43, series of 1903 and that she obligate herself to vacate said land within 60 days subsequent to notification to that effect. Upon such notification, however, she refused to vacate the land, forcing the municipality to file a complaint before the CFI to order her to vacate the land. After a hearing of the case, the CFI dismissed the complaint.

  • The contract is not valid because the terms of the contract is contrary to public policy and public order, so the obligation of Rojas to restore and deliver the possession of the land to the Municipality of Cavite, which in turn restore to her the sums received from her as payment of rentals
  • The contract is valid because it is not contrary to law or ordinance. The obligation of the parties is to fulfill the terms of the agreement.
  • The contract is valid because the object or prestation is within the commerce of man, so the obligation of the parties to abide by the agreement.
  • The contract is not valid because the object or prestation is not within the commerce of man, so the obligation of Rojas to restore and deliver the possession of the land to the Municipality of Cavite, which in turn restore to her the sums received from her as payment of rentals.

When criminal action is instituted, the civil action for the recovery of the civil liability arising from the offense charged shall deemed instituted with the criminal action unless__________________________________, reserves the right to institute it separately or institutes the civil action prior to the criminal action.

  • The offended parties waive the criminal action
  • None of the choices
  • The offended parties waives the civil action
  • The offended parties pardon criminal action

___________________ 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.

  • None of the choices
  • Perfected promise
  • Imperfect promise
  • Contracts

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.

  • True
  • False

A qualified acceptance constitutes a counter offer.

  • a. True
  • b. False

Under Void contracts, when the act is unlawful and constitutes a criminal offense and both parties are guilty,_________________________.

  • All of the choices
  • both parties will be free from prosecution
  • both can file an action in courts
  • both parties will be prosecuted.

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?

  • No, the stipulation does not have consent from one of the parties.
  • No, the motive of Joy is to defraud Sonny on the value of the house.
  • Yes, there is a consent but the terms is not valid may resort to reformation.
  • 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.

Clint, a wealthy landowner suddenly left for abroad leaving his livestock farm unattended. John, a neighbor of Clint managed the farm thereby incurring expenses. When Clint returns, he has the obligation to reimburse John for the expenses incurred by him and to pay him for his services. It is based on the principle _______________________________________.

  • that no man is an island
  • That no one shall enrich himself at the expense of another
  • dura lex sed lex
  • that nobody is above the law.

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.

  • 6
  • 8
  • 4
  • None of the choices

_______________________ contracts are essentially agreements to give donations.

  • Remuneratory
  • Onerous
  • None of the choices
  • Gratuitous

___________________________contracts as by its effect is valid but cannot be enforced by a proper action in court.

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

___________________ is where courts must find that the contract contravenes some established interest in the society

  • a. Contrary to public policy
  • b. Contrary to good customs
  • c. Contrary to morals
  • d. Contrary to law

___________________________contracts as by its nature of the defect are covered by statute of frauds.

  • Void
  • Unenforceable
  • Rescissible
  • Voidable

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, because the nullity of the prohibition also nullifies the legacy.
  • Yes, since the prohibition against remarrying is absolute, it is deemed not written.
  • No, since such prohibition is authorized by law and is not repressive; she could remarry but must give up the money.
  • Yes, because the prohibition is inhuman and oppressive and violates Marina's rights as a free woman.

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:

  • Creditor cannot claim for damages because it's the debtor's call.
  • Converted to simple and pure obligation
  • The impossibility of the act must not be due to creditor's act
  • None of the choices

Various stipulations of a contract shall be interpreted together.

  • False
  • 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.

  • False
  • True

In order to judge the intention of the contracting parties, their contemporaneous and _____________________________acts shall be principally considered.

  • a. former
  • b. previous
  • c. subsequent
  • d. preceding

When the offerer has allowed the offeree a certain period to accept, the offer may be withdrawn at any time before acceptance by communicating such withdrawal, except:

  • when the option is founded upon a consideration, as something paid or promised.
  • when the option is founded upon a consideration, as something fulfilled.
  • All of the choices
  • when the option is founded upon consideration as something waived.

When only one prestation is agreed upon, but the obligor may render another substitution, the obligation is ________________________.

  • Solidary
  • Alternative
  • Joint
  • Facultative

Those contracts which contemplate an impossible service are inexistent or void from the beginning.

  • TRUE
  • FALSE

Those contracts whose cause, object or purpose is contrary to law, morals, good customs, public order, or public policy are _________________.

  • Inexistent
  • Voidable
  • Reformation
  • Rescissible

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.

  • a. intimidation
  • b. fraud
  • c. fear
  • d. violence

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 __________________________.

  • a. Voidable
  • b. Rescissible
  • c. Ratification
  • d. Reformation

Simulation of a contract may be ________________________.

  • none of the choices
  • conditional or complicated
  • absolute or relative
  • qualified or limited

___________________ pertains to certain percepts that cannot be universally recognized as moral, sometimes they only apply to certain communities or localities.

  • a. Contrary to morals
  • b. Contrary to public policy
  • c. Contrary to law
  • d. Contrary to good customs

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.

  • both parties
  • innocent party
  • None of the choices
  • party at fault

_____________________ is a unilateral proposition which one party makes to the other for the celebration of the contract

  • Acceptance
  • Offer
  • None of the choices
  • Counter-offer

The following are kinds of unenforceable contracts, except:

  • Declares inefficiency which contract already carries in itself.
  • Both parties are incapable of giving consent to the contract.
  • Do not comply with the statute of Frauds which agreements are unenforceable unless in written memorandum and subscribed by the party charged.
  • Entered into the name of another person by one who has no authority or no legal representation or acted beyond his powers.

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 active subject in the statement as an essential requisite of an obligation.

  • Obligation to deliver
  • Tony
  • Sharon
  • Motorcycle unit

Advertisements for bidders are simply ____________________________ to make proposals, and the advertiser is not bound to accept the highest or lowest bidder, unless the contrary appears.

  • none of the choices
  • information
  • invitations
  • counter offer

The particular motive of the parties entering into a contract are the same from the cause thereof.

  • False
  • True

The following are effects of Legal Compensation except:

  • All accessory obligations of the principal which has been extinguished are also extinguished.
  • Both debts are extinguished to the concurrent amount
  • Period of prescription continues with respect to the obligation or part extinguished.
  • Interests stop accruing on the extinguished obligations or the part extinguished.

No liability for fortuitous events intervene.

  • False
  • True

An absolutely simulated or fictitious contract is _____________________.

  • a. valid
  • b. none of the choices
  • c. void
  • d. voidable

Obligations arising from the contract have the force of law between contracting parties.

  • False
  • True

Below are examples of obligations arising from the law except:

  • To support one's family
  • To pay bail bond
  • To return money paid by mistake
  • Taxes

Obligations arising from contracts have the force of law between contracting parties and should be complied with good faith.

  • False
  • True

___________________________contracts cannot be cured.

  • Voidable
  • Void
  • Unenforceable
  • Rescissible

_____________________________of the law excuses no one from compliance therewith

  • Ignorance
  • Mistake
  • Influence
  • Error

The following cannot give consent to a contract except:

  • Deaf-mutes who do not know how to write
  • Demented persons
  • Insane during lucid interval
  • Unemancipated minors

Default ends from the moment creditor demands the performance of obligation.

  • a. True
  • b. False

The following are exceptions of demand except:

  • Law so provides
  • Express stipulation
  • Demand is useless
  • Period is not the controlling motive

_______________________ any person may invoke the inexistence of the contract whenever juridical effects founded thereon are asserted against him.

  • None of the choices
  • accion reinvindicatoria
  • accion pauliana
  • accion subrogatoria

There is a presumption under period or term that it both benefits the debtor and creditor unless from the tenor of both circumstances it should appear that the period has been established in favor of one or the other.

  • False
  • True

Although the cause is not stated in the contract, it is not presumed to that it exists and illegal.

  • a. True
  • b. False

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?

  • None of the choices.
  • The contract is void because they have not consented with the amount at the time they entered into a contract.
  • The contract of sale is annullable, because they have both consented with the amount at the time they entered into a contract.
  • The contract of sale is valid, because they have both consented with the amount at the time they entered into a contract.

The following are essential elements of a contract, except:

  • Cause
  • Object
  • Motive
  • Consent

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.

  • False
  • True

No contract may be entered into upon future inheritance except in cases expressly authorized by law.

  • True
  • False

A contract where consent is given through mistake, violence, intimidation, undue influence is voidable.

  • False
  • True

An obligation is a legal duty, however created, the violation of which may become the basis of an action of law.

  • a. True
  • b. False

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

  • Diligence of Employers
  • Pre contractual obligation
  • Test of negligence
  • Liability for fault for others

Civil obligations arising from criminal offence must be governed by the penal laws

  • False
  • True

When you interpret a contract you must look for the contractual intent.

  • True
  • False

Mortgage, guaranty and bond are examples of _______________________ elements of a contract

  • Essential
  • Natural
  • Accidental
  • All of the choices

The following are ways to extinguish or annulment of a current offer, except:

  • Withdrawal by the offeror
  • Contracts becomes illegal
  • Offeror makes a new offer
  • Lapse of time for the option period

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.

  • True
  • False

___________________________contracts as by its nature of the defect, consent is vitiated by mistake or error, violence and intimidation, undue influence, fraud or misrepresentation.

  • Voidable
  • Void
  • Rescissible
  • Unenforceable

Demand is not necessary to incur delay when:

  • The debtor is guilty of non-performance.
  • Creditor refuses the performance without just cause.
  • Time is the controlling motive
  • If the obligation bears interest.

Those 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.

  • Ratification
  • Voidable
  • Reformation
  • Rescissible

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.

  • True
  • False

The following are the exceptions under transmissibility of rights of fulfillment of obligation, except:

  • a. Not transmissible by law.
  • b. Not transmissible by their very nature (e.g personal rights)
  • c. There is stipulation of the parties that they are not transmissible , not be easily implied but clearly established or by thevery least, clearly inferable.
  • d. None of the choices

The following are ways to test divisibility of obligations, except:

  • Provisions of law affecting the prestation
  • Will or intention of the parties.
  • Definite things
  • Nature of the thing

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____________.

  • a. Unfair
  • b. None of the choices.
  • c. Fair

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.

  • Contract
  • Obligation
  • Civil Liability
  • Laws

A contract to be effective as Cessation must not appear in a public document.

  • False
  • 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.

  • False
  • True

Crime/s without civil liability are the following except;

  • a. Traffic violation
  • b. Gambling
  • c. Civil obligations arising from criminal offense.
  • d. Criminal contempt

In case of a divisible contract, if the illegal terms can be separated from the legal ones, the latter may be enforced.

  • TRUE
  • FALSE

Under obligations, an active subject, also known as the________________, who has the power to demand the prestation

  • Debtor
  • Complainant
  • Obligee or creditor
  • Obligor

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

  • True
  • False

___________________ 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.

  • Active
  • Legal
  • Passive
  • Natural

Those contracts where one of the parties is incapable of giving consent to a contract;

  • Rescissible
  • Ratification
  • Reformation
  • Voidable

The fixing of a price may be determined by one of the contracting party for the sale to be perfected.

  • True
  • False

To determine the degree of intimidation, _________________________ of the person shall be borne in mind

  • age
  • sex
  • all of the choices
  • condition

The following are requisites of a valid payment except:

  • Person who pays
  • Person to whom payment is made
  • Things to be paid
  • None of the choices

____________________________ is conditional type of obligation where an obligation arises, but if the condition does not happen, obligation does not come to existence.

  • a. Resolutory
  • b. Suspensive
  • c. Pure
  • d. Potestative

__________________ 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
  • motive
  • object or prestation
  • consent

________________________may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns.

  • Reformation
  • None of the choices
  • Rescission
  • Annulment

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

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

Under Action for damages, recoverable for damages include any and all damages that a human being may suffer. Responsibility for damages may be divisible.

  • False
  • True

_______________________contract shall be resolved against the party who prepared the contract and in favor of the one who merely adhered to it.

  • Unenforceable
  • Rescissible
  • Adhesion
  • Voidable

X sold Y 100 sacks of rice that Y was to pick up from X's rice mill on a particular date. Y did not, however, appear on the agreed date to take delivery of the rice. After one week, X automatically rescinded the sale without notarial notice to Y. Is the rescission valid?

  • No,the seller should first determine that Y was not justified in failing to appear.
  • Yes, automatic rescission is allowed since, having the character of movables and consumables, rice can easily deteriorate.
  • No, since there was no express agreement regarding automatic rescission.
  • No, the buyer is entitled to a customary 30-day extension of his obligation to take delivery of the goods.

_______________________ are contracts resolved against the party who prepared it and in favor of the one who merely adhered to it.

  • defective contracts
  • Adhesion contracts
  • Onerous contracts
  • Gratuitous contracts

________________________ means deceit or fraud.

  • Culpa
  • Dolo
  • Damage
  • Delict

___________________________means both are at fault.

  • Illegal per se
  • pari delicto
  • None of the choices
  • fraud

Obligations derived from law are presumed.

  • False
  • True

The following are causes of reformation of instrument except:

  • None of the choices
  • Mistake by 3rd persons where due to ignorance, lack of skill, negligence, bad skill of drafter.
  • Unilateral, one party is in bad faith, the party in good faith may seek reformation of contract.
  • Mutual, mistake of fact, clear and convincing proof.

The following are cases where no reformation is allowed except:

  • When real agreement is valid.
  • Oral contracts
  • Simple donations
  • Will

Stipulations in favor of third persons may demand its fulfillment provided the acceptance is made after revocation.

  • False
  • True

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?

  • Pre contractual obligation
  • Liability for fault for others
  • Test of negligence
  • Diligence of Employers

___________________________contracts can be cured by ratification or prescription.

  • a. Rescissible
  • b. nenforceable
  • c. Void
  • d. None of the choices

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.

  • FALSE
  • TRUE

The following are the requisites of fortuitous event under extinguishment of liability in case of breach except:

  • Possible to foresee the event which constitute caso fortuito and avoidable
  • Obligor must be free from any participation in the aggravation of the injury resulting to the creditor
  • Cause of the unforeseen and unexpected occurrence or the failure of the debtor to comply with his obligation must be independent of human will.
  • Occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner

Mora means _________________.

  • Negligence
  • Obligation
  • Delay
  • Prestation

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?

  • No, because Y is in estoppel, having changed engine without prior demand.
  • Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y.
  • No, because Y waived the warranty against hidden defects.
  • Yes. X is liable whether or not he was aware of the hidden defect.

The procedure of reformation of instrument shall be governed by _____________________of the Supreme Court.

  • Clerk of court
  • Rules of court
  • Criminal court
  • None of the choices

____________________is a characteristic of a contract which constitutes the law between parties.

  • Mutuality
  • Freedom
  • Obligatory force
  • Relativity

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.

  • True
  • False

_________________ cleanses the contract from its defect from the moment it was constituted.

  • None of the choices
  • Effects of Unenforceable contracts
  • Effects of Annulment
  • Mutual Restitution

_______________________cleanses the contract from all its defects from the moment it was constituted.

  • Voidable
  • Ratification
  • Reformation
  • Rescissible

_______________________contract in which consent of one of the parties is defective.

  • Rescissible
  • Non existent
  • Voidable
  • Valid

___________________________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

  • Mistake
  • Violence
  • Undue influence
  • Fraud

The interpretation of obscure words or stipulations in a contract shall favor the party who caused the obscurity.

  • False
  • True

Joe and Jane were to marry in 3 months. Meantime, to express his affection, Joe donated a house and lot to Jane, which Joe wrote in a letter to Jane. Jane wrote back, accepting the donation and took possession of the property. Before the wedding, however, Jane suddenly died of heart attack. Can Jane's heirs get the property?

  • No, since the donation and its acceptance are not in a public instrument.
  • Yes, since Joe freely donated the property to Jane who became its owner.
  • Yes, since all the requisites of a donation of an immovable are present.
  • No, since the marriage did not take place.

Contracts that are ratified, where both parties are incapable of giving consent to a contract are unenforceable.

  • TRUE
  • FALSE

The following are requisites of a valid tender of payment except:

  • Should include interest due
  • Must be conditional
  • None of the choices
  • Made in lawful currency

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.

  • Yes, because there is fraud and absence of consent
  • No, it is a valid transaction in payment of debt.

___________________________contracts whose objects are outside the commerce of man.

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

Misrepresentation made in good faith is not fraudulent but may constitute ________________.

  • error
  • none of the choices
  • culpable violation of the law
  • consent

One of the requisites of prestation is that it must be possible, if not then the obligation is ___________________.

  • a. Demandable
  • b. None of the choices
  • c. Void
  • d. Legal

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 object/prestation in the statement as an essential requisite of an obligation.

  • Tony
  • Obligation to deliver
  • Motorcycle unit
  • Sharon

Under Article 1206, when only one prestation has been agreed upon, but the obligor may render another in substitution the obligation is called alternative.

  • False
  • True

Under payment by Cession, the debtor may cede or assign his property to his creditors in payment of his debts unless _______________________________.

  • Initiated by the debtor and accepted by creditor.
  • There is stipulation to the contrary.
  • None of the choices
  • Insolvency of the debtor.

The most natural way to extinguish obligation.

  • a. Payment or Performance
  • b. Novation
  • c. Condonation
  • d. Impossibility of Performance

Suppose a stipulation or word written contract is susceptible of various interpretations. What interpretation or meaning should be given to it?

  • All of the choices
  • The one which would be effectual.
  • The one who has least reciprocity of interest in onerous contracts
  • Resolved in favor the party who prepared it.

Substantial breach of contract is where part of obligation is performed and gives rise to liability for damages.

  • True
  • False

___________________________is an injury suffered by one of the parties by virtue of contract that is advantageous to him.

  • Lesion
  • Loss
  • None of the choices
  • Alienation

In general, what is to be paid in an obligation?

  • None of the choices
  • Prestation due
  • Debt
  • Undue object/service

The following are the effects if a third person payment which is not an interested party with debtor's consent, except:

  • None of the choices
  • Third person is not entitled to full reimbursement
  • 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
  • Creditor may refuse to accept payment

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

  • Mutuality
  • Freedom
  • Relativity
  • Obligatory force

____________________, which is an object or undertaking to give, to do or not to do

  • Duty
  • Obligation
  • Law
  • Prestation

_________________________ are interests on obligation which have an extra contractual or delictual origin.

  • a. None of the choices
  • b. Usury
  • c. Moratory
  • d. Compensatory

The duty to return a stolen carabao is an example of obligations arising from ____________________.

  • Quasi contracts
  • Law
  • Acts or omissions punished by law
  • Quasi delicts

An exception in the form of contracts is when the law requires that a contract be in order it may be valid or enforceable.

  • True
  • False

All things which are not outside the commerce of men, including future things, may be the object of a contract.

  • False
  • True

General rule: Nullity of principal obligation, also nullify ____________________.

  • Penal clause
  • None of the choices
  • Damages
  • Fulfillment

The following are the requisites of consent, except:

  • a. Intelligent and freewill
  • b. Impaired
  • c. Plurality of subjects
  • d. Express manifestation of will

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 _____________________.

  • Ratified
  • Annulled
  • None of the choices
  • Reformed

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 _________________________.

  • Freedom to stipulate.
  • Mutuality of contracts.
  • Obligatory force of contracts.
  • Relativity of contracts.

___________________________contracts as by its nature of the defect, both parties are legally incapacitated to act.

  • Void
  • Voidable
  • Unenforceable
  • Rescissible

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.

  • Endorsed
  • None of the choices
  • Delivered
  • Cashed

The following are the requisites of rescission except:

  • Obligor who performed chose rescission over fulfillment or performance is impossible.
  • One of the creditors failed to comply with what is incumbent of him
  • The breach is substantial
  • Partial fulfillment

Contracts of Adhesion shall be resolved against the party who prepared the contract and in favor of the one who merely adhered to it.

  • a. True
  • b. False

Law as a source of obligation requires

  • Agreement
  • Presumed
  • Expressly determined
  • Not governed by itself

In onerous transfer, if there is good faith, the contract may be rescinded.

  • False
  • True

Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations, constitutes __________________________.

  • a. violence
  • b. fraud
  • c. intimidation
  • d. misrepresentation

_________________________is the result of injury (loss, hurt, harm)

  • Delict
  • Dolo
  • Damage
  • Culpa

What action may be taken when the true intentions of the parties are not expressed in the instrument?

  • Annulment
  • Enforcement
  • Reformation
  • None of the choices

In general, what is to be paid to extinguish obligation?

  • Money
  • Inferior quality
  • Prestation
  • Superior quality

Under defective causes, lesion or inadequacy of cause is valid unless fraud or undue influence is valid.

  • True
  • False

The object of the obligation and object of the contract created thereby need not be identical.

  • False
  • True

____________________is a characteristic of a contract wherein entering into contract is guaranteed right by citizens. They are free to do so as long as it's not contrary to law, customs, public order and policy.

  • Freedom
  • Obligatory force
  • Mutuality
  • Relativity

____________________ 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.

  • Statute of Frauds
  • Governing rules in unauthorized contracts
  • Purpose of Statutes
  • Written memorandum/note

Concept of ________________________ is the meeting in one person of the qualities of the creditor and the debtor with respect to the same obligation

  • Merger
  • Consignation
  • Remission
  • Condonation

The procedure for the reformation of instrument shall be governed by rules of court to be promulgated by the _____________________________.

  • Local Courts
  • Statutes
  • Supreme Court
  • Constitution

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.

  • a. False
  • b. True

____________________________ 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.

  • Annulment
  • None of the choices
  • To declare void
  • Reformation

Under reciprocal obligations, the injured party may choose between fulfillment of obligation and the rescission of the obligation, with the payment of damages in either case. He may also ask rescission even after he has chosen fulfillment, if the latter should become _______________________.

  • Mixed
  • Casual
  • Impossible
  • Negative

The following are stages of a contract, except:

  • Perfection
  • Introduction
  • Death
  • Preparation

___________________________contracts are those absolutely simulated or fictitious.

  • Rescissible
  • Void
  • Unenforceable
  • Voidable

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.

  • True
  • False

The following are impossible things except:

  • None of the choices
  • Beyond the ordinary strength of power of man
  • Not susceptible of existing
  • Outside the commerce of man

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

  • False
  • True

The duty to repair damages due to negligence is an example of obligations arising from ____________________.

  • Quasi contracts
  • Quasi delicts
  • Acts or omissions punished by law
  • Law

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?

  • Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat.
  • Solidary or joint upon the discretionof Sam.
  • Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are entitled.
  • Joint since the conversion of their liability to one of indemnity for damages made it joint.

___________________________contracts as by its nature of the defect, want of capacity by age or insanity.

  • Voidable
  • Void
  • Unenforceable
  • Rescissible

Under action of undoing, when the obligation consist of not doing and the obligor does what has been forbidden him, it shall be undone at his expense.

  • True
  • 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.

  • Usury
  • Moratory
  • Compensatory
  • None of the choices

As a general rule, contracts shall be ___________________ in whatever form they have entered into, provided all essential requisites for their validity are present.

  • Void
  • Obligatory
  • None of the choices
  • Unenforceable

In an obligation to pay taxes, the passive subject is the taxpayer, the active subject is the government through the Bureau of Internal Revenue, the prestation is "to give," specifically__________________, the juridical tie is a source of obligation arising from law.

  • a. Not to pay taxes
  • b. To evade taxes
  • c. None of the choices
  • d. To pay taxes

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?

  • None of the choices
  • The law presumes that G has made a legal payment and that acknowledgement receipt is illegal.
  • 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.
  • The law presumes that G has made an illegal payment and that the acknowledgement receipt is not acceptable by G.

___________________________contracts as by its effect does not create rights and cannot impose obligation.

  • Rescissible
  • Voidable
  • Void
  • Unenforceable

Those contracts where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.

  • a. Voidable
  • b. Ratification
  • c. Rescissible
  • d. Reformation

Obligations arising from Contracts or 'Obligation ex contractu' arise from stipulations of the parties: meeting of the minds / formal agreement must be complied with in good faith because it is the "law" between parties; neither party may unilaterally evade his obligation in the contract, unless: contract authorizes it or other party assents

  • a. False
  • b. True

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

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

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?

  • Yes, since X bought the land and paid Y for it.
  • No, after more than 6 years, the action to enforce the verbal agreement has already elapsed.
  • Yes, after full payment, the action became imprescriptible.
  • No, since the sale cannot under the Statute of Frauds be enforced.

The following are characteristics of void contracts, except:

  • Cannot be confirmed or validated
  • Produces no effect
  • Defects on their effects
  • Void from the beginning

___________________________contracts whose cause or object did not exist at the time of transaction.

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

When there is mutual mistake, either party or the successor in interest may ask for reformation.

  • True
  • False

Civil action for recovery of civil liability arising from the offense is impliedly instituted with the criminal action except;

  • 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.
  • offended parties reserves right to institute it separately
  • All of the choices
  • The law provides for an independent civil action.

If the debtor knew the impossibility of things and services, he will be liable for damages.

  • True
  • False

If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the proper remedy is ____________________________.

  • annulment of contract
  • reformation
  • rescission
  • none of the choices

Elements of Obligation where in there is power to demand the prestation or object. (obligee/creditor)

  • Active Subject
  • Efficient cause
  • Passive Subject
  • Form in which obligation is manifested

The following are the primary remedies of creditor in case of breach except:

  • Action for damages
  • Accion Subrogatoria
  • Action for rescission
  • Action for performance

Parties may freely enter into any stipulations or contracts, provided _______________________.

  • They are not contrary to law, morals, good customs,
  • Parties were forced and intimidated.
  • They are contrary public order or public policy
  • Unwise or unfavorable contract unwillingly entered into.

_________________________ property is alienated to the creditor in satisfaction of a debt in money shall be governed by laws of sales.

  • Payment by cession
  • None of the choices
  • Dation in payment
  • Consignation

Words ought to be subservient to the intent, not the intent to the word.

  • False
  • True

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 ______________________.

  • Delivery of the 20 sets of computers.
  • None of the choices.
  • Delivery of 15 sets of computers only.
  • Not to deliver the 20 sets of computers

An offer made through an agent is accepted from the time acceptance is communicated to him.

  • a. True
  • b. False

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

  • True
  • False

What is the objective of Novation?

  • Change in the object of prestations
  • Succession of creditor
  • None of the choices
  • Merge of rights

If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the_________________ meaning of its stipulations shall control.

  • figurative
  • vague
  • complex
  • literal

Every person criminally liable is also civilly liable.

  • True
  • False

Can future inheritance be the subject of a contract of sale?

  • No, since it will put the predecessor at the risk of harm from a tempted buyer, contrary to public policy.
  • Yes, since the death of the decedent is certain to occur.
  • No, since the seller owns no inheritance while his predecessor lives.
  • Yes, but on the conditionthat the amount of the inheritance can only be ascertained after the obligations of the estate have been paid.

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 original debtor shall pay or perform the obligation with recourse to the new debtor.
  • The original debtor remains liable since he gave no consent to the substitution.
  • The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part.

The relativity as a characteristic of contract will take effect only between parties, their assignments and heirs.

  • True
  • False

Those contracts which are absolutely simulated or fictitious are inexistent or void from the beginning.

  • TRUE
  • FALSE

The following are cases when you have the right to damages except:

  • Fraud
  • In any manner upholding with tenor of obligation
  • Delay or fault
  • Negligence

__________________________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.

  • a. To do
  • b. Not to do
  • c. None of the choices
  • d. To give

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.

  • True
  • False

_____________________________is one that by universally recognized standards is inherently or by its very nature bad or improper, immoral or contrary to good conscience.

  • pari delicto
  • Illegal per se
  • fraud
  • None of the choices

The power to administer a property must appear in a public document

  • False
  • True

Words which may have different significations shall be understood in that which is most in keeping with the nature and object of the contract.

  • False
  • True

___________________ determines the existence of an obligation.

  • Condition
  • Period or term
  • Demand
  • Past event

The determination of the performance maybe left to a third person, whose decision is binding even if not known to both parties.

  • False
  • 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:

  • All of the choices
  • Debt is partly liquidated and partly unliquidated
  • When there are several subjects/parties are bound under different terms and conditions
  • Expressly stipulated to that effect

The following must not be stipulated in the contract, except:

  • contrary to morals
  • contrary to traditions
  • contrary to good customs
  • contrary to law

_______________________ means negligence or fault.

  • a. Delict
  • b. Damage
  • c. Dolo
  • d. Culpa

___________________________contracts as by its nature of the defect, was entered in the name of another without authority or in excess of authority.

  • Unenforceable
  • Rescissible
  • Void
  • Voidable

Under Estoppel, when oblige accepts the performance knowing its incompleteness or irregularity and without expressing any protest or objection, the obligation is deemed ____________________________.

  • a. Suspended
  • b. Fulfilled/complied with
  • c. Incomplete
  • d. Demandable

_______________________ does not affect the validity of the contract.

  • Consent
  • Motive
  • Cause
  • Object

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
  • False

Under kinds of prestation on obligation not to do, the following are the duties of the obligor except:

  • To pay the damages
  • Not to do what should not be done
  • To demand reimbursement to those who benefitted.
  • To shoulder the cost to undo what should not have been done.

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.

  • FALSE
  • TRUE

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 passive subject in the statement as an essential requisite of an obligation.

  • obligation to deliver
  • Sharon
  • motorcycle unit
  • Tony

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
  • Aside from the Professional fee of Architect it must include also the quality of work .
  • Aside from the Professional fee of Architect it must include also the factors that may affect the price.
  • Rate customarily paid in the place where the services were rendered.

In bilateral contracts, fulfillment must not be simultaneous or reciprocal.

  • a. False
  • b. True

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

  • False
  • True

________________________ is no impediment to the reformation of an instrument.

  • All of the choices
  • Statute of Frauds
  • Court
  • Equity

___________________________contracts as by its effect is valid until annulled by a competent court.

  • Rescissible
  • Voidable
  • Unenforceable
  • 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.

  • Limited
  • Absolute
  • Conditional
  • Partial

The following are the third persons or interested parties who can pay to extinguish obligation except:

  • Guarantors
  • Sureties
  • Co-debtors
  • Debtor

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 father-in-law but proceeded to buy the property anyway. When Cabaliw found out, she instituted an action along with her daughter to recover the properties.

  • None, because the purchase is within family members.
  • None of the choices
  • Yes, Soterro knew about the decision against Benigno, but proceeded with the purchase.
  • Maybe, it does not clearly states whether Benigno did not disclose the details to Cabaliw.

The following is a classification of a contract according to form except:

  • a. special
  • b. common
  • c. Informal
  • d. gratuitous

In order that fraud may make a contract voidable, it should be serious and should not have been employed by both contracting parties.

  • False
  • True

____________________ means man's innate sense or notion of what is right and wrong is more or less universal.

  • Contrary to public order
  • Contrary to public policy
  • Contrary to morals
  • Contrary to law

When one of the parties brought in action to enforce the instrument, he cannot subsequently ask for its reformation.

  • True
  • False

Elements of negligence are the following except:

  • Failure to perform such duty as a prudent person.
  • Duty on the part of the defendant to protect the plaintiff from injury of which the latter complains.
  • An injury to the plaintiff through such failure
  • A person's conduct expected of a reasonably prudent person acting under similar circumstances.

___________________________contracts as by its effect is valid until rescinded .

  • Unenforceable
  • Rescissible
  • Void
  • Voidable

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.

  • False
  • True

Demand may be in any form, provided it can be proved. Burden of proof of demand on creditor.

  • True
  • False

In interpretation of contracts, what must prevail?

  • intentions of the parties
  • None of the choices
  • conditions
  • terms

X and Y, both Filipinos, were married and resided in Spain although they intend to return to the Philippines at some future time. They have not executed any marriage settlements. What law governs their property relations?

  • Philippine law since they are both Filipinos.
  • No regime of property relations will apply to them.
  • Spanish law since they live in Spain.
  • They may choose between Spanish law and Philippine law.

Acceptance may be ____________________ or implied.

  • all of the choices
  • express
  • tacit manifestation of will
  • written

Damages can be recovered if when contract is not perfected.

  • Pre contractual obligation
  • Test of negligence
  • Liability for fault for others
  • Diligence of Employers

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

  • Writing
  • None of the choices
  • General circulation
  • Newspaper

____________________means automatic foreclosure.

  • Pactum leonina
  • Pactum de non alienado
  • Pactum commisorum
  • None of the choices

The following are examples of 'Acts of God' except;

  • epidemic
  • earthquake
  • fires
  • rebellion

D sold E a parcel of land worth 1M. E failed to pay D. Has F has the right to have the sale declared void by court on the ground of absence of cause for non payment of price?

  • F has the right as third person who does not exist in the time of the transaction
  • F has no right being a third person who does not concern any fulfillment of the obligation.
  • None of the choices.
  • F has the right even if he is not a contracting party

Creditor should make demand before debtor incurs delay.

  • False
  • True

_______________________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
  • Governing rules in unauthorized contracts
  • Statute of Frauds
  • Written memorandum/note

Contracts shall be obligatory, in whatever form they may have been entered into, provided all essential requisites for their validity are present.

  • a. False
  • b. True

In general, creditor can refuse valid tender of payment.

  • True
  • False

The contract with absolute nullity and produces no effect as if it had never been executed or entered into.

  • False
  • True

___________________________contracts are those contemplate an impossible service.

  • Unenforceable
  • Void
  • Rescissible
  • Voidable

In an obligation to give like Avon Products, the passive subject is the seller, the active subject is the buyer, the prestation is "to give," specifically to deliver the Avon Products, and the juridical tie is a source of obligation arising from contract.

  • None of the choices
  • To evade the deliver of Avon Products
  • Not to deliver Avon Products
  • To deliver the Avon Products

The statement of a false cause in contracts shall render them ___________.

  • none of the choices
  • void
  • voidable
  • valid

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?

  • If Jean is not yet paid, the antique chair cannot be considered part of the agreement with Jane.
  • All of the choices
  • If Jane is not yet fully paid to Jean, the antique chair cannot be considered part of the agreement with Jane.
  • If Jean already paid the antique chair to Susan, the chair can be considered a part of the agreement.

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.

  • a. False
  • b. True

The following are characteristics of unenforceable contracts, except:

  • They cannot be assailed by third persons
  • They produce legal effects unless set aside by a competent court.
  • They cannot be enforced by a proper action incourt
  • They are susceptible of ratification

There is ____________________________when one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants or ascendants, to give his consent.

  • intimidation
  • fraud
  • fear
  • violence

A mere expression of an opinion does not signify fraud, unless:

  • it is made in good faith
  • all of the choices
  • it has created minimal mistake
  • made by an expert and the other party has relied on the former's special knowledge.

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.

  • a. True
  • b. False

What is the object in a contract of sale?

  • contrary to customs
  • Indeterminate object
  • Impossible
  • within the commerce of man

A simple mistake of account shall give rise to its _________________________.

  • correction
  • none of the choices
  • validity
  • invalidity

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.

  • False
  • True

The following are effects of delegacion except:

  • a. Original debtor is released from obligation
  • b. Debtor is aware of insolvency at the time he deligated his debt
  • c. The new debtor is subrogated in the rights of the creditor.
  • d. Old debtor is not liable for non fulfillment

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.

  • a. None of the choices
  • b. restitution
  • c. penalty
  • d. non payment

________________________ is a wrong or false notion about such matter.

  • Mistake of fact
  • Mistake or error
  • None of the choices
  • Error of law

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.

  • True
  • False

___________________________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.

  • Voidable
  • Unenforceable
  • Rescissible
  • Void

The duty to refund an "over charge" of money because of solutio indebiti (payment by mistake) or negtiorum gestio (management of another's property) is an example of obligations arising from ____________________.

  • Quasi contracts
  • Law
  • Quasi delicts
  • Contracts

X sold his fishing boat to Y who intends to use the boat for smuggling. Is the contract of sale illegal?

  • If X has the knowledge that the boat will be used will make the sale illegal.
  • With the knowledge of both parties on the what will be the use of the boat , will make the sale legal.
  • All of the choices
  • By the motive of Y, the contract of sale is void.

Baldo, a rejected suitor, intimidated Judy into marrying him. While she wanted to question the validity of their marriage two years after the intimidation ceased, Judy decided in the meantime to freely cohabit with Baldo. After more than 5 years following their wedding, Judy wants to file a case for annulment of marriage against Baldo on ground of lack of consent. Will her action prosper?

  • Yes, the action for annulment is imprescriptible.
  • Yes, because the marriage was celebrated without Judy's consent freely given.
  • No, since the action prescribed 5 years from the date of the celebration of the marriage.
  • No, since the marriage was merely voidable and Judy ratified it by freely cohabiting with Baldo after the force and intimidation had ceased

___________________means one party bears the lion's share of the risk.

  • Pactum leonina
  • None of the choices
  • Pactum de non alienado
  • Pactum commisorum

_______________________ contracts, the cause is understood to be, for each contracting party, the prestation of a thing or service by the other.

  • Onerous
  • Remuneratory
  • None of the choices
  • Gratuitous

Mortgage, insurance and bonds are examples of natural elements of a contract.

  • False
  • True

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.

  • FALSE
  • 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.

  • Exempt
  • Compel
  • Refrain
  • Disregard

________________________ 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.

  • Casual
  • Mixed
  • Negative
  • Impossible

___________________is a meeting of minds between two persons whereby binds himself, with respect other, or to give something or to render some service.

  • Performance
  • Contracts
  • Obligation
  • Laws

The following are words indicating joint obligation except:

  • Prorata
  • In solidum
  • Mancomunicada
  • We promise to pay

_____________________________ is a kind of payment when a debtor is forced by means of judicial proceeding either to comply with the prestation or pay indemnity.

  • Normal
  • Abnormal
  • Integrity
  • Identity

______________________ means mere unaccepted offer.

  • contract
  • perfected promise
  • imperfected promise
  • none of the choices

The following are reasons to annul a contract when it has prevented the meeting of the minds of the parties, except:

  • Accident
  • Mistake
  • Fraud
  • Equitable conduct

A contract which is the direct result of a previous illegal contract is also void and inexistent.

  • 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.

  • a. False
  • b. True

Under rescissible contracts, does it prejudice the creditors?

  • None of the choices
  • Test of credibility
  • Test of implication of force and intimidation
  • Test of fraud

Consent is manifested by the _____________________ of the offer and acceptance upon the thing and the cause which are to constitute a contract.

  • Contracts
  • Performance
  • Meeting
  • Laws

In impossibility of things and services, the impossibility must be actual and contemporaneous with the making of the contract and not subsequent.

  • True
  • False
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