LAW1 FINALS:

I. MULTIPLE CHOICE
1. Future and certain event upon the arrival of which the obligation subject to it either arises or is
Period
terminated.
2. That remedy granted by law to the contracting parties and sometimes even to third persons in order to
Rescission secure reparation of damages caused to them by a valid contract, by means of the restoration of things to their
condition in which they were prior to the celebration of said contract.
3. It is a meeting of minds between two or more persons whereby one binds himself, with respect to the
Contract
other, to give something or to render some service.
Obligation 4. It is a juridical relation to give, to do or not to do.

Consent 5. It is the conformity or concurrence of will of two parties upon the object and terms of the contract.
6. A contract which possesses all the essential requisites of a valid contract but one of the parties is
Voidable Contract incapable of giving consent, or the consent is vitiated by mistake, violence, intimidation, undue influence or
fraud.
Innominate 7. That kind of contract which has no specific name or designation in law.
Stipulation Pour Autrui 8. It is a stipulation in a contract clearly and deliberately conferring a favor upon a third person.
Example of Real Contract 9. Pledge.
Essential Element 10. That kind of element without which no contract can validly exist.
11. A contract which gives a person for consideration a certain period within which to accept the offer of the
Option Contract
offerer.
Mistake/ Error 12. It is the false notion of a thing or a fact material to the contract.
13. It arises from ignorance of certain provision of law or from an erroneous conclusion as to the legal effect
Mistake of Law
of an agreement on the part of one of the parties in the contract.
14. Fraud committed by one party before or at the time of the celebration of the contract to secure the consent
Causal Fraud
of the other.
15. An act of deliberately deceiving others, by feigning or pretending by agreement, the appearance of
Simulation of Contract
contract which is either non-existent or concealed.
Subject Matter 16. Object of a contract
17. It is the remedy allowed by law by means of which a written instrument is amended or rectified so as to
Reformation
express or conform to the real agreement.
18. Instances of a valid contract.
Motive 19. It is purely personal or a private reason which a party has in entering into a contract.
Inexistent Contract 20. A contract which, because of certain defects, generally produces no effect at all.

II. TRUE OR FALSE

False - Valid 1. Contract entered into by one party during his lucid interval is voidable.
2. Obligation is a meeting of minds between two persons whereby one binds himself, with respect to the
TRUE
other, to give something or to render some service.
TRUE 3. A contract cannot be given effect if it is contrary to law because law is superior to a contract.
4. Any third person who induces another to violate his contract shall be liable for damages to the other
TRUE
contracting party.
TRUE 5. Ignorance of the law excuses no one from compliance therewith.
False - Obligation 6. A condition is a juridical necessity to give, to do or not to do.
TRUE 7. Juridical tie is the vinculum or the link which binds the parties to an obligation.
TRUE 8. The creditor or the obligee is the person who can demand the performance of the obligation.
TRUE 9. Law is a source of obligation.

TRUE 10. Those who in the performance of his obligations are guilty of delay shall be liable for damages.
11. A pure obligation is one which is not subject to conditions or burdens nor does it mention a specific date
TRUE
for its fulfillment, thereby immediately demandable.
False - Period 12. A condition is a future and uncertain event while a term is future but certain event.
TRUE 13. A potestative condition the happening of which depends on the exclusive will of the debtor is void.

TRUE 14. A resolutory condition produces the extinguishment of an obligation upon the happening of the event.

False - upon delivery 15. Real contracts like pledge are perfected by mere consent.
False - cause 16. Consent, object and motive are the essential elements of contract.
TRUE 17. Acceptance in a contract must be absolute.
TRUE 18. Concealment is equivalent to misrepresentation which renders a contract also voidable.
19. An opinion given with fraud by a mining engineer about a sale of a piece of land by saying that it has a
TRUE deposit of mines which encouraged the other party to enter into the said contract will also render the contract
voidable.
TRUE 20. Right to vote is an intransmissible right which cannot be an object of a contract.
TRUE 21. A period which depends upon the will of the debtor empowers the court to fix the duration.
TRUE 22. A condition which depends upon the sole will of a debtor invalidates the obligation.
TRUE 23. Obligation with a period is presumed to be for the benefit of both the creditor and debtor.
24. When the debtor becomes insolvent, he has no right to a period, thus the obligation becomes a pure and
TRUE
simple obligation which is immediately demandable.
TRUE 25. Sale is a source of obligation.

False - when it is communicated 26. The choice in an alternative obligation produces effect even without communication to the other party.
27. In facultative obligation, two or more prestations have been agreed upon and compliance of one
False - alternative
satisfies the obligation.
28. There is a joint obligation where each one of the debtors is bound to render, and/or one of the creditors
False - solidary
has a right to demand the entire compliance with the prestation.
False - does not 29. Indivisibility of an obligation always gives rise to solidarity.
30. Remission of the whole obligation, obtained by one of the solidary debtors, entitles him to
False - does not
reimbursement from his co-debtors.

III. ENUMERATION
1) Classification of contract according to perfection
-consensual
-real
-solemn

2) Kinds of defective contracts

-rescissible contracts
-voidable contracts
-unenforceable contracts
-void or inexistent contracts

3) Requisites of contracts
-Consent
-Object
-Cause

4) Requisites of obligation
-passive subject
-active subject
-object or prestation
-juridical or legal tie
5) Causes of extinguishment of obligations
-death of a party in case the obligation is a personal one
-mutual desistance or withdrawal
-arrival of resolutory period
-compromise
-impossibility of fulfillment
-happening of a fortuitous event

6) Vices of consent which renders a contract voidable

-error or mistake
-violence or force
-intimidation or threat or duress
-undue influence
-fraud or deceit

7) Debtor loses his right to a period

-when the debtor becomes insolvent
-when he does not furnish to the creditor the guaranties or securities which he has promised
-
-When the debtor violates any undertaking.
-When the debtor attempts to abscond.

8) What are the rescissible contracts

-contracts entered into in behalf of wards
-contracts agreed upon in representation of absentees.
-contracts undertaken in fraud of creditors
-contracts which refer to things under litigation
-contracts declared by law to be subject to rescission