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The Law on Obligations and Contracts

The Law of Obligations and Contracts is the body of rules which deals with the nature and sources of obligations an

None of the choices

1
0

1
Suspensive

Period of prescription continues with respect to the


obligation or part extinguished.
1
0

Accion Subrogatoria
They are not contrary to law, morals, good
customs,

Accion Pauliana
Facultative

There are pre-existing contractual relations


between the parties.
Merger

1
To do

Retroactive

Express

Pre contractual obligation


Real Right
0
Negotiorum gesto

A person's conduct expected of a reasonably


prudent person acting under similar circumstances.
Insane person acting in lucid interval

Obligation

1
Fair
All of the choices
1
1

Partial
Possible to foresee the event which constitute caso
fortuito and avoidable

Judiciary
Damage

1
1

Partial fulfillment
Juridical necessity

The offended parties waives the civil action


Void

1
demandable

Dolo
In any manner upholding with tenor of obligation

Delay

1
None of the choices

1
Legal

Natural

Obligation
Culpa Levis

Change in the object of prestations


Impossible
Alternative

Not presumed

Prestation
Liability for fault for others

Expressly determined
1
Impossible

All of the choices


All of the choices

Yes as per conditional obligation.


Obligee or creditor

Definite things

Period is not the controlling motive


1

Penal clause
Contract

Compensatory
Quasi contract
0

To demand reimbursement to those who


benefitted.
0

Diligence of Employers
To give
0
To deliver the Avon Products

Civil obligations arising from criminal offense.

None of the choices


None of the choices

In solidum
0
Delivery of the 20 sets of computers.
Reparatory

rebellion

0
None of the choices

Offer
Third party, even in good faith

1
invitations
Abnormal

Contrary to public policy


gratuitous

Prestation due

All of the choices


intimidation

0
voidable

Pactum commisorum

Third person is not entitled to full reimbursement


1
1
1

0
0

1
0

Reformation
None of the choices

fraud
1

1
void

Obligatory force

reformed
error

Supreme Court
1

0
when the option is founded upon a consideration,
as something paid or promised.

Pactum leonina
1

1
all of the choices

1
Contrary to good customs

voidable
There is stipulation to the contrary.

None of the choices


fraud

Contrary to morals
void

Mistake or error

correction
0

made by an expert and the other party has relied


on the former's special knowledge.

Must be conditional
Dation in payment

Debtor is aware of insolvency at the time he


deligated his debt

All of the choices


1

Debtor
vitiate
annulment of contract
1
All of the choices

Contracts
1

Fulfilled/complied with
1

1
Freedom
1

Disagreement
absolute or relative

Relativity

Perfected promise
Cashed

Accidental
0

Promise
Mutuality

Payment or Performance

Prestation

0
0

Introduction
1

1
None of the choices

Offeror makes a new offer

fraudulent
0

None of the choices

voidable
1

all of the choices

imperfected promise
none of the given choices

contrary to traditions
counter offer

Test of fraud
Void

Rescissible
Rescissible

Voidable
The one which would be effectual.

Non existent

Void
1

1
They produce legal effects unless set aside by a
competent court.

0
Reformed

0
1

1
Effects of Annulment

1
1

Statute of Frauds

Rescissible
1

Motive

Unenforceable
When real agreement is valid.

literal

can no longer be set aside


Within the commerce of man

Object
Illegal per se

Effects of Annulment
0

1
subsequent

None of the choices

None of the choices


accion reinvindicatoria
1
1

0
Fraud
Meeting
restitution

Offer
Void

Rules of court

Insane during lucid interval


Statute of Frauds

Ignorance
Writing

Equitable conduct
0

1
Inexistent

both parties will be prosecuted.


1

Unenforceable
Onerous

Reformation

Voidable
Absolute

0
Unenforceable

Void
Unenforceable

0
words ought to be subservient to the intent, not the
intent to the word.

Outside the commerce of man

Void
pari delicto

Adhesion contracts
subsidiary

Voidable
1

Rescissible
1

Void

Voidable
1

Void
1

Obligatory
innocent party
Rescissible

Void
Interpretation of contracts

1
Voidable

0
0

Lesion
Compel
Rescissible

1
together

intentions of the parties


Rescissible

Gratuitous
Reformation

0
Adhesion

Mistake
0

Unenforceable
0

Impaired
1

Interpretation of contracts
Void

Purpose of Statutes
Reasonable fear

1
Written memorandum/note

Unenforceable

Void
1

Rescissible
Time is the controlling motive

Yes, Soterro knew about the decision against


Benigno, but proceeded with the purchase.

voidable.
No, since such prohibition is authorized by law and
is not repressive; she could remarry but must give
up the money.
Philippine law since they are both Filipinos.
dura lex sed lex
Condition subsequen or Resolutory
Yes, because there is fraud and absence of
consent
Yes, since the defect was not hidden; X knew of it
but he acted in bad faith in not disclosing the fact to
Y.

Rescission (cancellation) of the obligation with


indemnity for damages
mora solvendi

Relativity of contracts.
cause

within the commerce of man


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.
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.
Void.

Quasi contracts
Sharon
Tony
He can accept all 6,000 apples and pay the seller
at P20 per apple.
No, after more than 6 years, the action to enforce
the verbal agreement has already elapsed.

consent
The intention of the parties because their will has
the force of law between them.

Obligation to deliver
Ervin can ask for the reformation of the contract
due to the mutual mistake even though Janice
agreed to receive the Toyota Car.
Joint since the conversion of their liability to one of
indemnity for damages made it joint.

Acts or omissions punished by law


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.
Reformation

No, since the seller owns no inheritance while his


predecessor lives.
Motorcycle unit
F has no right being a third person who does not
concern any fulfillment of the obligation.

Motive

If X has the knowledge that the boat will be used


will make the sale illegal.
All of the choices
Yes, automatic rescission is allowed since, having
the character of movables and consumables, rice
can easily deteriorate.
No, since the donation and its acceptance are not
in a public instrument.
The original debtor is freed of liability since
novation took place and this relieved himof his
obligation.
1

Neither party may recover what he has given by


virtue of the contract.
Voidable

Rescissible
1

1
1

Rescissible
Acts or omissions punished by law

No, since the marriage was merely voidable and


Judy ratified it by freely cohabiting with Baldo after
the force and intimidation had ceased
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.
1
All of the choices

To return money paid by mistake


1

1
0

Ratification
Law
The contract of sale is valid, because they have
both consented with the amount at the time they
entered into a contract.

motive
1

0
Ratification

0
Rescissible

Inexistent

Lesion
Declares inefficiency which contract already carries
in itself.

Rescissible

1
0

1
Voidable

1
1

Inexistent
Defects on their effects

0
Rescissible

nobody can take the law into his own hands


1
the body of rules which deals with the nature and sources of obligations and the rights and duties arising from agreements and

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

Under kinds of prestation on obligation to do, the duty of the obligor to pay damages as obliged to do something fails
do it , the will be no action for compliance because that would be involuntary servitude as prohibited by the constitut
Under subsidiary liability of a crime, innkeepers, tavern keepers or any other persons or corporation, shall not be civ
liable for crimes committed in their establishment.

Damages can be recovered when contract is not perfected if withdrawal of the offer must be without any illegitimate
cause.
____________________________ is conditional type of obligation where an obligation arises, but if the condition do
not happen, obligation does not come to existence.

The following are effects of Legal Compensation except:


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

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

The following are the primary remedies of creditor in case of breach except:
Parties may freely enter into any stipulations or contracts, provided _______________________.

Every person criminally liable is also civilly liable.

The following are primary remedies in case of breach except:


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

The following are the requisites of Quasi Delict except:


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

The head of a family that lives in a building or a part thereof is responsible for damages caused by things thrown or
falling from the same.
__________________________is a kind of Prestation which consist of all kinds of work or services, whether menta
physical.

The following are requisites of obligation with a period except:

___________________________ is called when specifically stated.

Damages can be recovered if when contract is not perfected.


___________________ power belonging to a person over specific thing, without a passive subject individually
determined against whom such rights may be personally exercised.
Under Action for damages, recoverable for damages include any and all damages that a human being may suffer.
Responsibility for damages may be divisible.
__________________________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 contin
the same until the termination of the affair and its incidents or to require the person concerned to substitute him, if th
owner is in the position to do so.

Elements of negligence are the following except:


The following are exempting circumstances, do not incur criminal liability but not exempt from civil liability except:

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

Even in the absence of demand, debtor incurs delay if he acknowledges his delay. Request for extension of time for
payment is not sufficient though, the acknowledgement must be express.
Under Quasi contract, consider a pizza that is delivered to the wrong address. The pizza has already been paid for.
individual does not correct the delivery man and instead keeps the pizza, the court system could issue a quasi contr
that would require the Individual to pay back the amount of the pizza to the party that paid for the pizza. The contrac
used to prevent any party from benefiting from the situation at the other party's expense; the restitution required und
the contract is to make the situation____________.
If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; It is understood that the thing i
when it __________________________.
Manufacturers and processors of food stuffs, drinks, toilet articles and similar goods shall be liable for death or injuri
caused by any noxious or harmful substances used, although no contractual relation exists between them and the
consumers.
Obligation arising from Law or 'Obligation ex lege' is imposed by law itself and must be expressly or impliedly set for
and cannot be presumed.

___________________________ is a kind of Novation as to effect where only a modification or change in some prin
conditions of the obligation.
The following are the requisites of fortuitous event under extinguishment of liability in case of breach except:

___________________________is a kind of compensation as to origin when decreed by court in a case where ther
counterclaim like defendant is the creditor of the plaintiff for an unliquidated amount, sets up his credit as a counterc
against the plaintiff and his credit is liquidated by judgment, thereby compensating it with the credit of the plaintiff.
_________________________is the result of injury (loss, hurt, harm)

A clothing company engaged a celebrity as its product ambassador so long the latter does not endorse a particular r
business. If the celebrity is caught promoting the products of that rival business, the clothing company may terminat
contract as the resolutory condition took effect.
Sheila bought a refrigerator from May but Sheila did not pay the refrigerator. If after demand, Shiela still did not pay,
can sue Shiela in Court either to demand payment or for recovery of the refrigerator.

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

The following are the requisites of rescission except:


______________________connotes that in case of non compliance of the obligation, there will be legal sanction.

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
institute it separately or institutes the civil action prior to the criminal action.
One of the requisites of prestation is that it must be possible, if not then the obligation is ___________________.

When fulfillment of obligation is no longer possible, rescission takes place.


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

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

________________________ means deceit or fraud.


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

Mora means _________________.

Obligations arising from contracts have the force of law between contracting parties and should be complied with go
faith.
Under Alternative Obligations, the following are the effects of loss or impossibility of one or all prestations or when th
debtor shall lose the right of choice, when among the prestations whereby he is alternatively bound only one is
practicable except:

No liability for fortuitous events intervene.


___________________ 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.

_________________________ obligation is based on equity and natural justice.

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


The following are kinds of negligence except:

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

What is the objective of Novation?


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 fulfillm
if the latter should become _______________________.
Agoncillo vs. Javier. Facts: Three debtors got a loan from Marino and bound themselves to pay P2,7000.00. The loa
was secured by a mortgage of a house and lot. It was agreed that if upon the maturity of the debt, the debtors are
insolvent, they would cede the house and the lot to Marino. If the house and lot would not be sufficient to cover the d
the balance would be secured by the mortgage of 4 parcels of land belonging to one of the debtors. The titles were
delivered to Marino. As the debt was not paid, Marino sued the debtors. Issue: Whether or not the stipulation of the
parties is valid? Held: This stipulation is valid. It is simply a/an ________________ obligation, which is expressly allo
by the law. The agreement to convey the house and lot at an appraised valuation in the event of failure to pay the de
money at its maturity is, however, in our opinion perfectly valid. It is simply an undertaking that if the debt is not paid
money, it will be paid in another way.

Legal Subrogation is ___________________.

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


Obligation arising from quasi- delict is demandable not only for one's own acts or omissions but also for those perso
for whom one is responsible.

Law as a source of obligation requires


When the obligation consist in the delivery of an intermediate or generic thing, whose quality or circumstance have n
been stated, the creditor cannot demand a thing of superior quality, Neither can the debtor deliver a thing of inferior
quality. The purpose of the obligation and other circumstances shall be taken into consideration.
________________________ conditions as to possibility which are those contrary to good customs or public policy
those prohibited by law shall annul the obligation which depends on them.

Civil action for recovery of civil liability arising from the offense is impliedly instituted with the criminal action except;
Even though the object or service may be physically divisible but the obligation is indivisible if

A car distributor placed an order for 20 luxury cars from a car maker company provided that the latter deliver the goo
within 12 months. It was expressly agreed and stipulated in writing that full payment depended on the prompt deliver
the goods. If the cars are delivered within the agreed period, the car company acquires to right to demand full paym
for the purchase and its obligation to deliver is extinguished. Conversely, if the cars are not delivered after the expira
of the period, does the obligation to pay by the car distributor's extinguished?
Under obligations, an active subject, also known as the________________, who has the power to demand the pres

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

The following are exceptions of demand except:


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

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


A ______________________ is a meeting of minds between two persons whereby one binds himself with respect to
other, to give something or to render service.

_________________________ are interests on obligation which have an extra contractual or delictual origin.
A ___________________is an agreement between two parties without previous obligations to one another that has
created and legally recognized by the court system. Under this contract, neither involved party is expected to create
an agreement.
The receipt of the principal by the creditor, without reservation with respect to interest, shall give rise to the presump
that the interest has not been paid.

Under kinds of prestation on obligation not to do, the following are the duties of the obligor except:
Under Quasi contracts, when funeral expenses are borne by the third person, without the knowledge of the relatives
are obliged to give support to the deceased, said relatives must reimburse to the third person, even without claim wa
made by the third person.

An employer may be civilly liable for the quasi delict or crime of his employee.
__________________________is a kind of Prestation which consist of the delivery of a movable or immovable thing
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
Under Article 1206, when only one prestation has been agreed upon, but the obligor may render another in substitut
the obligation is called alternative.
In an obligation to give like Avon Products, the passive subject is the seller, the active subject is the buyer, the prest
is "to give," specifically to deliver the Avon Products, and the juridical tie is a source of obligation arising from contra

Crime/s without civil liability are the following except;

The following are kinds of Negligence except;


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

The following are words indicating joint obligation except:


Under Quasi-delict, Teachers or Heads of establishment of arts and trades shall be liable for damages caused by th
pupils or students or apprentices, as long as they are not in their custody.
An accounting firm and a computer shop are two separate businesses that do not have any connection. If the accou
firm buys 20 sets of computers for P400,000.00 from the computer shop, then a legal connection (juridical relation) i
created between the two enterprises. With a perfected written contract of sale, the accounting firm may demand from
computer shop the ______________________.
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 mig
suffer from non performance of the obligation, thereby avoiding the difficulties of proving such damages.

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

Obligations derived from law are presumed.


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

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

_____________________ is a unilateral proposition which one party makes to the other for the celebration of the
contract
In general, the following can be made or authorized to receive payment except:

The parties are free to determine the content of the contract insofar as it does not contravene the mandatory provisi
of both the law and good morals.
Advertisements for bidders are simply ____________________________ to make proposals, and the advertiser is n
bound to accept the highest or lowest bidder, unless the contrary appears.
_____________________________ is a kind of payment when a debtor is forced by means of judicial proceeding e
to comply with the prestation or pay indemnity.

___________________ is where courts must find that the contract contravenes some established interest in the soc
The following is a classification of a contract according to form except:

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

Under Estoppel, when the obligee accepts the performance, knowing its incompleteness or irregularity and without
expressing any protest or objection, the obligation is deemed _______________________.
There is ____________________________when one of the contracting parties is compelled by a reasonable and w
grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spou
descendants or ascendants, to give his consent.

The fixing of a price may be determined by one of the contracting party for the sale to be perfected.
A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud is voidable.

____________________means automatic foreclosure.

The following are the effects if a third person payment which is not an interested party with debtor's consent, except
A contract entered into in the name of another by one who has no authority or legal representation, or who has acte
beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the person on whose beha
has been executed, before it is revoked by the other contracting party.
In contracts creating real rights, third persons who come into possession of the object of the contract are bound here
subject to the provisions of the Mortgage Law and Land Registration Laws.
There must be mutuality between the parties in contracts based on their essential equality, to which is repugnant to
one party bound by the contract leaving the other free there from.

The determination of the performance maybe left to a third person, whose decision is binding even if not known to b
parties.
In acceptance of offer with a period, acceptance beyond the time fixed is not legally an acceptance but an old offer.

If the debt produces interest, payment to the principle should have not deemed have been made until the interest ha
been covered.
In general rule, payment to a wrong third party is valid but obligation is not extinguished even if in good faith of the
debtor.

________________________may be ordered at the instance of either party or his successors in interest, if the mist
was mutual; otherwise, upon petition of the injured party, or his heirs and assigns.
It is considered loss of the thing due are through the following reasons except:

Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations
constitutes __________________________.
In order that fraud may make a contract voidable, it should be serious and should not have been employed by both
contracting parties.

General rule: Creditor cannot be compelled to receive partial prestations as well as Debtor cannot be compelled to p
partial payments.
The statement of a false cause in contracts shall render them ___________.

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

When a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said
instrument may be______________________.
Misrepresentation made in good faith is not fraudulent but may constitute ________________.

The procedure for the reformation of instrument shall be governed by rules of court to be promulgated by the
_____________________________.
Contracts without cause, or with unlawful cause, produce no effect whatever. The cause is unlawful if it is contrary to
morals, good customs, public order or public policy.

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

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

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


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 contract is to be judged by its character, courts will look into substance and not to the mere form of the transaction
To determine the degree of intimidation, _________________________ of the person shall be borne in mind

Real contracts, such as deposit, pledge and Commodatum, are not perfected until the delivery of the object of the
obligation.
___________________ pertains to certain percepts that cannot be universally recognized as moral, sometimes they
apply to certain communities or localities.

When the offer or acceptance made during a hypnotic spell, it becomes:


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

The following are requisites of a valid payment except:


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.

____________________ means man's innate sense or notion of what is right and wrong is more or less universal.
An absolutely simulated or fictitious contract is _____________________.

________________________ is a wrong or false notion about such matter.

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


An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party after acceptance
conveyed.

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

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


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

The following are effects of delegacion except:

Partial payment is not allowed except:


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

The following are the third persons or interested parties who can pay to extinguish obligation except:
Mistake as to the identity or qualifications of one of the parties will _____________________consent only when suc
identity or qualifications have been the principal cause of the contract.
If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the proper
remedy is ____________________________.
The determination of the performance may be left to a third person, whose decision shall not be binding until it has b
made known to both contracting parties.
As a general rule, partial payment is not allowed, creditor cannot be compelled to receive partial prestations same w
debtor cannot be compelled to give partial payments except:

___________________is a meeting of minds between two persons whereby binds himself, with respect other, or to
something or to render some service.
All services which are not contrary to law, morals, good customs, public order or public policy may likewise be the ob
of a contract.

Under Estoppel, when oblige accepts the performance knowing its incompleteness or irregularity and without expres
any protest or objection, the obligation is deemed ____________________________.
The relativity as a characteristic of contract will take effect only between parties, their assignments and heirs.

Contract is perfect when the offeror or counter offeror learn about the acceptance.
____________________is a characteristic of a contract wherein entering into contract is guaranteed right by citizen
They are free to do so as long as it's not contrary to law, customs, public order and policy.
How payment is made? A debt shall not be understood to have been paid unless the thing or service which the oblig
has beencompletely delivered or rendered as the case may be.

Impossible things or services can be the object of contracts.

The following are characteristics of a contract, except:


Simulation of a contract may be ________________________.

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

___________________ 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.
Under payment/performance, the delivery of promissory notes payable to order or bills or exchange or other mercan
documents shall produce effect of payment only when they are ___________________, or when through the fault o
creditor they have been impaired.

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


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.

The following are essential elements of a contract except:


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

The most natural way to extinguish obligation.

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

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


In general, creditor can refuse valid tender of payment.

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

The following are stages of a contract, except:


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

When one of the parties is unable to read, or if the contract is in a language not understood by him, and mistake or f
is alleged, the person enforcing the contract must show that the terms thereof have been fully explained to the forme
There is no contract unless the following requisites concur , except:

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

The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves
________________________.
The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains, may no
appear in public document.

The following are requisites of condonation, except:

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


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

Acceptance may be ____________________ or implied.

______________________ means mere unaccepted offer.


The following may not be reformed, except:

Contracts are perfected by mere consent, and from that moment, the parties are bound not only to fulfillment of wha
been expressly stipulated but not to consequences

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


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
____________________.

Under rescissible contracts, does it prejudice the creditors?


___________________________contracts as by its nature of the defect, one of the essential requisites of a contrac
lacking in fact or in law.

___________________________contracts as by its nature of the defect is by representation if the absentees when


later suffers by lesion of more than 25% of the value of the thing.
___________________________contracts as by its nature of the defect, declared by law to be the subject of rescis

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


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

________________ contract which is an absolute nullity.

___________________________contracts whose objects are outside the commerce of man.


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

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

Words ought to be subservient to the intent, not the intent to the word.
The following are characteristics of unenforceable contracts, except:

If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have
the intention or will of the parties, the contract shall be valid.
When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or
the clerk or typist, the instrument does not express the true intention of the parties, the courts may order the instrum
be _____________________.

All other contracts where the amount does not exceed five hundred pesos must appear in writing.
A contract where consent is given through mistake, violence, intimidation, undue influence is voidable.

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

If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the prop
is sold absolutely or with a right of repurchase, reformation of the instrument is proper.
In impossibility of things and services, the impossibility must be actual and contemporaneous with the making of the
contract and not subsequent.

________________________ is no impediment to the reformation of an instrument.

___________________________contracts as by its effect is valid until rescinded .


The various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which
result from all of them taken jointly.

_______________________ does not affect the validity of the contract.

_________________contract that cannot be enforced unless ratified in the manner provided by law.
The following are cases where no reformation is allowed except:

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.

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


The following may not be the objects of a contract except:

_______________________is the thing, right or service which is the subject matter of the obligation arising from the
contract
_____________________________is one that by universally recognized standards is inherently or by its very natur
or improper, immoral or contrary to good conscience.

________________________ where it restore to each other things which have been the subject matter of the contra
including its fruits and the price with interest.
If mistake, fraud, inequitable conduct or accident has prevented to have a meeting of the minds by both parties, the
remedy is reformation.

Under defective causes, lesion or inadequacy of cause is valid unless fraud or undue influence is valid.
In order to judge the intention of the contracting parties, their contemporaneous and
_____________________________acts shall be principally considered.

The following are impossible things except:

The following are causes of reformation of instrument except:


_______________________ any person may invoke the inexistence of the contract whenever juridical effects found
thereon are asserted against him.
The usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and sh
the omission of stipulations which are ordinarily established.
When there is meeting of minds but the true intention is not expressed, a relief of reformation of the instrument may
sought by one of the parties.

When mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrum
may be annulled.
There is _________________ when through insidious words or machinations of one of the contracting parties, the o
is induced to enter into a contract which, without them, he would not have agreed to.
Consent is manifested by the _____________________ of the offer and acceptance upon the thing and the cause w
are to constitute a contract.
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
thing or price received by him.

______________________________ is a unilateral proposition which one party makes to the other for the celebrati
the contract.
The procedure of reformation of instrument shall be governed by _____________________of the Supreme Court.

The following cannot give consent to a contract except:


____________________ are descriptive of statutes which requires certain classes of contracts to be in writing. Mere
regulates the formalities of the contract necessary to render it enforceable.

_____________________________of the law excuses no one from compliance therewith


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

The following are reasons to annul a contract when it has prevented the meeting of the minds of the parties, except:
The interpretation of obscure words or stipulations in a contract shall favor the party who caused the obscurity

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

A qualified acceptance constitutes a counter offer.

Under Void contracts, when the act is unlawful and constitutes a criminal offense and both parties are
guilty,_________________________.
If the debtor knew the impossibility of things and services, he will be liable for damages.

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

___________________________contracts as by its nature of the defect, both parties are legally incapacitated to ac
_______________________ contracts, the cause is understood to be, for each contracting party, the prestation of a
thing or service by the other.

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

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


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

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


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

___________________________contracts whose cause or object did not exist at the time of transaction.
___________________________contracts as by its nature of the defect, was entered in the name of another withou
authority or in excess of authority.

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

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


verba intentione non e contradebent inservare means _______________________________.

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

___________________________contracts as by its nature of the defect, expressly prohibited by law.


___________________________means both are at fault.

_______________________ are contracts resolved against the party who prepared it and in favor of the one who m
adhered to it.
The action for rescission is ______________________; it cannot be instituted except when the party suffering dama
has no other legal means to obtain reparation for the same.

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


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

_________________ contracts are in between void and valid.


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

___________________________contracts are those contemplate an impossible service.

___________________________contracts which are binding until they are annulled by a competent court.
The contract with absolute nullity and produces no effect as if it had never been executed or entered into.

___________________________contracts as by its nature of the defect, when cause, object or purpose of contract
contrary to law, good customs, morals, public order or public policy.
Contracts shall be obligatory, in whatever form they may have been entered into, provided all essential requisites for
validity are present.

As a general rule, contracts shall be ___________________ in whatever form they have entered into, provided all
essential requisites for their validity are present.
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.
___________________ contract that has caused a particular damage to one of the parties or to a third person and w
for equitable reasons may be set aside even if valid.

___________________________contracts are those absolutely simulated or fictitious.


____________________________ is the determination of the meaning of the terms or words used by the parties in
written contract.

In order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be princip
considered.
___________________________contracts as by its nature of the defect, consent is vitiated by mistake or error, viol
and intimidation, undue influence, fraud or misrepresentation.

The particular motive of the parties entering into a contract are the same from the cause thereof.
Although the cause is not stated in the contract, it is not presumed to that it exists and illegal.

___________________________is an injury suffered by one of the parties by virtue of contract that is advantageou
him.
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, o
the contract has been perfected.
___________________________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

When you interpret a contract you must look for the contractual intent.
The various stipulations of a contract shall be interpreted ________________, attributing to the doubtful ones that s
which may result from all of them taken jointly.

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

In interpretation of contracts, what must prevail?


___________________________contracts can be cured by ratification or prescription.

_______________________ contracts are essentially agreements to give donations.


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

The object of the obligation and object of the contract created thereby need not be identical.
_______________________contract shall be resolved against the party who prepared the contract and in favor of th
one who merely adhered to it.

___________________________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
The usage or custom of the place shall be disregarded in the interpretation of the ambiguities of a contract, and sha
the omission of stipulations which are ordinarily established.

___________________________contracts can be cured by ratification, acknowledgement, acceptance or confirmat


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

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.

The following are the requisites of consent, except:


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

______________________ is the determination of the meaning of the terms or words used by the parties in their wr
contract.
___________________________contracts as by its effect does not create rights and cannot impose obligation.

_______________________prevent fraud and perjury in the enforcement of obligations depending for their evidenc
upon the unassisted memory of witnesses by requiring certain enumerated contracts and transactions to be evidenc
by a writing signed by the party to be charged.
___________________________is a fear occasioned by the threat must be reasonable and well grounded.

If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have
the intention or will of the parties, the contract shall be null and void.
_______________________evidence of agreement and is used to show the intention of the parties.

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

___________________________contracts cannot be cured.


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

___________________________contracts as by its nature of the defect refer to things in litigation without the know
and approval of litigants or competent judicial authority.
Demand is not necessary to incur delay when:

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. T
Court ordered Benigno to pay her P75 a month.However, Benigno did not pay and instead sold their property to his
in-law, Soterro. The transaction was done without Cabaliw's consent. Prior to the sale, Soterro already knew that the
was a judgment rendered against his father-in-law but proceeded to buy the property anyway. When Cabaliw found
she instituted an action along with her daughter to recover the properties.

When bilateral contracts are vitiated with vices of consent, they are rendered
Fernando executed a will, prohibiting his wife Marina from remarrying after his death, at the pain of the legacy of P1
million in her favor becoming a nullity. But a year after Fernando's death, Marina was so overwhelmed with love that
married another man. Is she entitled to the legacy, the amount of which is well within the capacity of the disposable
portion of Fernando's estate?
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?
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 is, the happening of the event which constitutes the condition. In other words, the fulfillment of which will exting
an obligation (or right) already existing.
Facts: The Dela Cruz sisters were the aunts of Dolores Rongavilla. They borrowed P2,000 from the Rongavillas to h
their rooftop repaired. Later, petitioners went back to their aunts to have them sign a contract. Taking advantage of t
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 w
transferred to their nephews. The land was mortgaged with the Cavite Development Bank.
Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter about it. In any even
the deed of sale expressly stipulated that X was not liable for hidden defects. Does Y have the right to demand from
reimbursement of what he spent to repair the engine plus damages?

When the thing deteriorates with the debtor's fault, the creditor may choose one of the following:
This happens when the creditor makes a demand and the obligor fails to deliver the thing.

Contracts take effect only between the parties or their assigns and heirs, except where the rights and obligations ari
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 _________________________
__________________ is an essential element of a contract which is more on the proximate purpose that the contrac
parties have in view at the time of entering into a contract.

Various stipulations of a contract shall be interpreted together.

What is the object in a contract of sale?


Sonny borrowed P1,000,000 from Joy and agreed that in case of non-payment on the date stipulated, Sonny's hous
and lot would be sold to Joy for the amount of P1,000,000. Is the stipulation valid?
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?
Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owned, wit
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?

The duty to pay a loan by virtue based on an agreement is an example of obligations arising from
____________________.
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.
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.
A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples. What are the right
and obligations of the buyer?
X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale. After
years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father. Unwilling
do so, X's heirs filed an action for specific performance against Y. Will their action prosper?

The following are elements of an obligation, except:


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

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.
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 t
sale of the Toyota Car?
Roy and Carlos both undertook a contract to deliver a boat docked in Subic to Sam in Manila. Before they could deli
it, however, the boat sank in a storm. The contract provides that fortuitous event shall not exempt Roy and Carlos fro
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?

The duty to return a stolen carabao is an example of obligations arising from ____________________.
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, se
of 1903 and that she obligate herself to vacate said land within 60 days subsequent to notification to that effect. Upo
such notification, however, she refused to vacate the land, forcing the municipality to file a complaint before the CFI
order her to vacate the land. After a hearing of the case, the CFI dismissed the complaint.
____________________________ is the remedy allowed by law by means of which a written instrument is amende
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.

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


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.
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
ground of absence of cause for non payment of price?

The following are essential elements of a contract, except:

X sold his fishing boat to Y who intends to use the boat for smuggling. Is the contract of sale illegal?
Architect Velasco designed and supervised the house construction of Mrs Reyes. The parties failed to agree beforeh
the professional the professional fee of Architect Velasco. How much is Mrs Reyes bound to pay Architect Velasco?
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
agreed date to take delivery of the rice. After one week, X automatically rescinded the sale without notarial notice to
the rescission valid?
Joe and Jane were to marry in 3 months. Meantime, to express his affection, Joe donated a house and lot to Jane, w
Joe wrote in a letter to Jane. Jane wrote back, accepting the donation and took possession of the property. Before th
wedding, however, Jane suddenly died of heart attack. Can Jane's heirs get the property?
Upon the proposal of a third person, a new debtor substituted the original debtor without the latter's consent. The cre
accepted the substitution. Later, however, the new debtor became insolvent and defaulted in his obligation. What is
effect of the new debtor's default upon the original debtor?
Contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them m
be rescinded.

Under Void contracts, when the act is unlawful but does not constitute a criminal offense at the same time both parti
are at fault,_____________________________
Those contracts where one of the parties is incapable of giving consent to a contract;

All other contracts specially declared by law to be subject to rescission.


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
them were incapacitated.

In case of a divisible contract, if the illegal terms can be separated from the legal ones, the latter may be enforced.
Ratification does not require the conformity of the contracting party who has no right to bring the action for annulmen
contracts

Those contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due th
The duty to repair damages due to negligence is an example of obligations arising from ____________________.

Baldo, a rejected suitor, intimidated Judy into marrying him. While she wanted to question the validity of their marria
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 o
consent. Will her action prosper?
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?
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.
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?

Below are examples of obligations arising from the law except:


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

Under rescissible contracts, whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify t
latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossib
him to return them.
Contracts that are ratified, where both parties are incapable of giving consent to a contract are unenforceable.

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

Voidable contracts may not be rescinded.

_______________________ extinguishes the action to annul a voidable contract


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 ____________________.
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 following are essential requisites of a contract, except:


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

Those contracts that are expressly prohibited or declared void by law are unenforceable.
_______________________cleanses the contract from all its defects from the moment it was constituted.

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.
________________________contracts which are in between valid and void.

The action to claim rescission must be commenced within five years.

Contracts which are simulated or fictitious are ____________________.

___________________________is an injury suffered by one of the parties by virtue of contract that is disadvantage
to him.
The following are kinds of unenforceable contracts, except:

Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the
they were effected, are also __________________________.

A contract which is the direct result of a previous illegal contract is also void and inexistent.
The action for annulment of contracts shall not be extinguished when the thing which is the object thereof is lost thro
the fraud or fault of the person who has a right to institute the proceedings.

These contracts under voidable are binding, unless they are annulled by a proper action in court. They are susceptib
ratification.
Those contracts where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.

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

Rescission shall be only to the extent necessary to cover the damages caused.
When the law sets, or authorizes the setting of a minimum wage for laborers, and a contract is agreed upon by whic
laborer accepts a lower wage, he shall be entitled to recover the deficiency.

Those contracts whose cause, object or purpose is contrary to law, morals, good customs, public order, or public po
The following are characteristics of void contracts, except:

Contracts which are entered into by guardians whenever the wards whom they represent suffer lesion by more than
fourth of the value of the things which are the object thereof may not be rescinded.
Those contracts which are entered into by guardians whenever the wards whom they represent suffer lesion by mor
than one-fourth of the value of the things which are the object thereof.

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


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.
and particular contracts

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