MISLA6201 - Law on Obligations and Contracts

BS IN ACCOUNTANCY
ASSIGNMENT 001
1. In the case of solution indebiti, there is no obligation to return the payment
made by mistake
Answer: False
2. This kind of quasi-contract arises from voluntary administration of the property,
business, or affairs of another without his consent or authority
Answer: Negotiorum gestio
3. Negotiorum gestio refers to the voluntary administration of the property,
business, or affairs of another with his consent or authority
Answer: False
4. This source of obligation pertains to certain lawful, voluntary and unilateral acts
giving rise to a juridical relation to the end that no one shall be unjustly enriched
at the expense of another
Answer: Quasi-contract
5. It pertains to the totality of the norms of good and right conduct, growing out of
the collective sense of right and wrong of every community
Answer: Moral Law
6. Which essential element of an obligation refers to the party who has the right to
demand performance of the obligation?
Answer: Active subject
7. This refers to the man-made law
Answer: Civil Law
8. If the debtor fails to perform his obligation in an obligation to deliver a generic
thing, the creditor, as a remedy, may ask the obligation to be complied with at
the expense of the debtor and demand damages
Answer: True
9. An obligation, being a juridical necessity, means that the court may be asked to
order its performance if the debtor does not fulfill it
 Answer: True
10.Which essential element of an obligation refers to the object or subject matter of
the obligation?
Answer: Prestation

SHORT QUIZ 001

1. There must be a pre-exiting contractual relation between the parties in the case
of quasi-delict
Answer: False
2. What is the obligation of the owner of the property in a quasi-contract of
negotorium gestio?
Answer: To reimburse the gestor or the officious manager for necessary and
useful expenses incurred during the administration

ASSIGNMENT 002
1. Which ground for liability to pay damages refers to the deliberate or intentional
evasion by the debtor of the normal compliance of this obligation?
Answer: Fraud
2. This pertains to the sum of money that may be recovered in reparation of the
harm done
Answer: Damages
3. In an obligation to give a determinate thing, which of the following is not one of
the obligations of the debtor?
Answer: To be liable in case of loss through a fortuitous event
4. As a rule, what is the effect of the loss of a determinate thing through a
fortuitous event?
Answer: The Obligation is extinguished
5. In a reciprocal obligation, the obligation of one is independent upon the
obligation of the other
Answer: False
 6. Pedro promised to deliver his car to Juan on Christmas eve of 2018. Christmas
eve has arrived and Pedro has not yet fulfilled his obligation. On January 1, 2019
lightning struck the car and totally obliterated it. The obligation of Pedro to Juan
is extinguished on the grounds that no person shall be liable for fortuitous event
Answer: False
7. In the case of case of incidental fraud or dolo incident, the contract is still valid
Answer: True
8. This characteristics of a thing pertains to when it is particularly designed or
physically segregated from all others of the same class
Answer: Determinate
9. A waiver of an action for future fraud cannot be made, doing so will make such
agreement void. Accordingly, the contract is still valid and the party employing
fraud will still be made liable for damages
Answer: True
10. As a general rule, the rights acquired in virtue of an obligation are transmissible
Answer: True
SHORT QUIZ 002
1. In an obligation to give a determinate thing, which of the following is not one of
the obligations of the debtor?
Answer: To be liable in case of loss through a fortuitous event
2. Which ground for liability to pay for damages refers to the non-fulfillment of an
obligation with respect to time?
Answer: Delay
3. This pertains to the sum of money that may be recovered in reparation of the
harm done
Answer: Damages
4. In the case of fraud or dolocausante, the contract is rendered violable
Answer: True
5. This characteristics of a thing pertains to when it is particularly designated or
physically segregated from all others of the same class
Answer: Determinate
 6. In a reciprocal obligation, the obligation of one is independent upon the
obligation of the other
Answer: False
7. Which ground for liability to pay damages refers to the deliberate or intentional
evasion by the debtor of the normal compliance of his obligation?
Answer: Fraud
8. As a rule, what is the effect of the loss of a determinate thing through a
fortuitous event?
Answer: The obligation is extinguished
9. Which of the following is an example of a determinate thing?
Answer: Car with plate number of PEO 125
10. When delay occurs in a reciprocal obligation, i.e., both parties are in default, it
will be considered as if there is no delay
Answer: True

ASSIGNMENT 003
1. In a conditional obligation with impossible condition, both the obligation and the
condition shall be void
Answer: True
2. Which type of obligation is one whose demand ability or extinguishment is
subjected to the expiration of the term which must necessarily come?
Answer: Obligation with a period
3. This type of obligation refers to the one that will be extinguished upon the
happing of a condition
Answer: Obligation with a resolutory condition
4. In a facultative obligation wherein the principal obligation is void or impossible,
the debtor is not required to give the substitute
Answer: True
5. This type of condition depends upon the will of one the contracting parties
Answer: Postative Condition
 6. If the condition is not do an impossible thing, it shall be deemed as not having
been agreed upon
Answer: True
7. A period that depends upon the will of the debtor authorizes the court to fix its
duration
Answer: True
8. Which type of compound obligation is one where several prestations are due but
the complete performance of one of them is sufficient to extinguish the
obligation?
Answer: Alternative Obligation
9. Which type of obligation is one which provides for a greater liability on the part
of the debtor in case of non-compliance
Answer: Obligation with a penal clause
10.Which type of obligation with several prestations are due and all must be
performed?
Answer: Conjunctive Obligation

SHORT QUIZ 003

1. What is the effect of an obligation with a condition that is not capable of
fulfillment in its nature or due to operation of law?
Answer: Both the obligation is and the condition are void
2. The effect of the fulfillment of the suspensive condition retroacts to the day of
the constitution of the obligation
Answer: True
3. A condition causes an obligation to arise or to cease; a period merely fixes the
time for the efficaciousness of an obligation
Answer: True
4. The improvement of the thing by nature or time in an obligation with a
suspensive condition shall
Answer: Inure to the benefit of the creditor
 5. In case of loss of a determinate thing before the fulfillment of the suspensive
condition without the debtor’s fault, the debtor is obliged to pay damages
Answer: False
6. Which of the following statements does not pertain to period in an obligation?
Answer: A period may refer to the future or to past event unknown the
parties
7. Jack is obliged to give Jill Php 100,000.00 if Jeremy graduates from college. This
Obligation is not
Answer: An obligation with a potestative condition
8. The creditor may not demand payment when the guaranties or securities
provided by the debtor disappeared through a fortuitous event
Answer: False
9. When the obligation is one with a suspensive condition and its subject matter is
determinate thing, which of the following is not an effect of the loss of such
thing?
Answer: If the loss of the thing is with debtor’s fault, the obligation is
rescinded with damages
10.To whom does the right to choose prestation belongs in an alternative
obligation?
Answer: Debtor, unless expressly given to the creditor
ASSIGNMENT 004
1. Using the phrase “jointly and severally” implies a joint obligation
Answer: False
2. This kind of obligation provides for a greater liability on the part of the debtor in
case of non-compliance
Answer: Obligation with a penal clause
3. An invisible obligation implies solidarity of the parties in an obligation
Answer: False
4. Solidarity exists even though the creditors and the debtors may not be bound by
the same periods and conditions
Answer: True
5. Which type of obligation is one capable of partial performance?
Answer: Divisible Obligation
6. As a rule the creditor may demand fulfillment of the obligation and the penalty at
the same time
Answer: False
7. An obligation to deliver a specific motorcycle is an example of an indivisible
obligation
Answer: True
8. A, B and C (debtors) are jointly obliged to give X, Y, and Z (creditors) the
amount of 18,000.00 How much can X collect from A?
Answer: 6,000
9. In this kind of solidarity obligation, the solidarity is on the part of the creditors
only
Answer: Active Solidarity
10.Which of following does not entail a solidarity obligation?
Answer: As a general rule, the concurrence of two or more debtors and/or
creditors in one and the same obligation
SHORT QUIZ 004
1. An obligation to work for one year (such as employment contract)
Answer: True
2. A solidarity on the part of the creditors is called active solidarity
Answer: True
3. Which of the following phrases in an obligation connotes solidarity obligation?
Answer: Jointly and Severally
4. A, B, and C (solidarity debtors) are obliged to give X, Y and Z (solidarity
creditors) the amount of 15,000.00 How much may Z collect from B?
Answer: 15,000.00
5. Which of the following cases wherein the court may not reduce the penalty
stipulated?
Answer: When there has been no performance by the debtor and penalty is
just and equitable
6. When there are two or more debtors and/or two or more creditors in one and
the same obligation, the obligation is presumed to be a joint obligation
Answer: True
7. Which type of obligation is capable of partial performance?
Answer: Divisible Obligation
8. Which of the following cases wherein only the penalty may be collected and not
damages and interests?
Answer: None of the choices
9. A, B, and C (solidary debtors) are obliged to give X, Y, and Z (solidarity creditors)
the amount of 15,000. Z then collected 15,000.00 from A. How much may A
collect each from B and C?
Answer: 5,000.00
 10.Dale is obliged to deliver 10 sacks of rice to Joshua on December 31. The parties
agree that if Dale fails to deliver on due date, he will pay a penalty of 1,000.00.
Which of the following statements is false?
Answer: Dale may just pay the penalty of 1,000.00 to Joshua instead of
delivering the 10 sacks of rice
ASSIGNMENT 005
1. This form of extinguishment of obligations pertains to when two persons, in their
own right, are debtors and creditors of each other
Answer: Compensation
2. Confusion is a form of extinguishment of obligations pertains to when two
persons, in their own right, are debtors and creditors of each other
Answer: False
3. This form of extinguishment of obligations pertains to the modification or
extinguishment of an obligation by another, either by changing the obligation or
principal obligation, substituting the person of the debtor, or subrogating a third
person the rights of the creditor
Answer: Novation
4. Payment means not only the delivery of money but also to the performance of
the obligation in any manner
Answer: True
5. A owes B 3,000.00 The debt is evidenced by a promissory note. B informed A
that he will no longer
Answer: Remission
6. This form of extinguishment of obligation occurs when there has been a
performance such
Answer: Payment of Performance
7. For dation in payment to apply, the debtor must be insolvent
Answer: False
8. This is special form of payment pertains to when there is a designation of the
debt to which payment shall be applied, when the debtors owes several debts in
favor of the same creditor
Answer: Application of Payment
 9. Remission not in any form of writing need to be accompanied by simultaneous
delivery if the value of the thing is less than 5,000.00
Answer: False

SHORT QUIZ 005

1. Where must payment of performance be made?
Answer: If there is a stipulation, then in the place designed
2. This form of novation pertains to when the credit or the rights of the creditor is
transferred to a third person
Answer: Subrogation
3. Pedro was obliged to paint the house of Juan before the year ends. Pedro does
what was required of him within the period imposed. By which means was the
obligation extinguished?
Answer: Performance
4. The parties may not stipulate that the payment shall be made in currency other
than Philippine legal tender at the time of payment.
Answer: False
5. Who shall determine whether the partial loss of the object is so important to
extinguish the obligation under the circumstances?
Answer: The courts
6. As a general rule, payment to an incapacitated creditor is not valid
Answer: True
7. To be valid, when shall condonation or remission, together with the acceptance,
be embodied in a public instrument?
Answer: When the remission involves an immovable property
8. In dation of payment, plurality of creditors is not required. As a general rule,
payment to an unauthorized third person is not valid.
Answer: True
9. Tender of payment by the debtor extinguishes the obligation
Answer: False
 10.Which of the following is not an effect of loss of the thing due is caused by a
third person?
Answer: The obligation of the debtor is not extinguished

ASSIGNMENT 006
1. This principle states that the contract takes effect only between the parties, their
assigns and heirs, except where the rights and obligations are not transmissible
by law, stipulation, or by nature
Answer: Relatively of contracts
2. The cause of remuneratory contracts is the pure beneficence or generosity of
one of the parties
Answer: False
3. This classifications of contracts refers to those where one party receives no
equivalent considerations (such as donation)
Answer: Gratuitous or lucrative
4. Preparation, conception and consummation are three stages of a contract.
Answer: False
5. Contracts of adhesion refers to those drafted only by one of the parties
Answer: True
6. This clarification of contracts refers to those that are perfected by delivery of the
object of the contract (such as contact of pledge and deposit)
Answer: Real
7. This type of contracts refers to those without a name under the law
Answer: Innominate
8. This refers to a meeting of the minds between two parties whereby one binds
himself, with respect to the other, to give something or to render some service
Answer: Contract
9. This classification of contracts refers to those that must be in the form provided
by the law for their perfection (such as certain donations)
Answer: Formal or Solemn
 10. This classification of contracts refers to those where the cause is the service or
benefit remunerated
Answer: Remuneratory

SHORT QUIZ 006

1. This principle states that the contract must bind both contracting parties; its
validity or compliance cannot be left to the will of one of them
Answer: Mutuality of contracts
2. Contracts binds both parties; its validity or compliance cannot be left to the will
of one of them
Answer: True
3. The stages of a contract according to the order of their occurrences are:
Answer: Conception, Birth, and Consummation
4. This nominate contract means “I give that you may do”
Answer: Do ut facias
5. This stages of a contract is the point when there is a meeting of minds between
the parties on a definite subject matter and valid cause
Answer: Perfection or birth
6. This refers to contracts whose existence depends upon another contract
Answer: Accessory
7. This classification of contracts refers to those where the parties give equivalent
values (such as sale and barter) hence, there is real fulfillment
Answer: Commutative
8. In order to bind all parties involved, contracts must be put into writing
Answer: False
9. The contracting parties may establish stipulations, clauses, terms and conditions
as they may deem convenient provided that they are not contrary to law, morals
good customs, public order or policy
Answer: True
10. This nominate contract means “ I give that you may give”
Answer: Do ut des

ASSIGNMENT 007
1. This pertains to the manifestation of the meeting of the offer and the acceptance
about the thing and the cause which are to constitute the contract
Answer: Consent
2. What is the effect of a consent given through mistake, violence, intimidation,
undue influence, or fraud?
Answer: The contract is voidable
3. Warranty against hidden defects is an essential element in a sale contract
Answer: False
4. It is essential reason why a party enters to a contract
Answer: Cause
5. What is the effect if the person employing violence or physical coercion that
causes the consent obtained to be vitiated is not one of the contracting parties,
i.e a third person?
Answer: The contract is voidable
6. These are elements of a contract without which there will be no a contract
Answer: Essential elements
7. These elements of contracts are those that refer to particular stipulations of the
parties and are not present in a contract unless stated.
Answer: Accidental elements
8. Which of the following may not be an object of a contract?
Answer: Things outside the commerce of men
9. Advertisement for bidders are merely invitations to make proposals and the
advertiser is not bound to accept the highest or lowest bidder, unless the
contrary appears
Answer: True
 10.Violence committed by a third person who did not take part in the contract may
still cause the consent to be vitiated
Answer: True

SHORT QUIZ 007

1. A contract with an illegal cause is void.
Answer: True
2. Jason signed the deed of sale of his house to Joshua because the Joshua twisted
and threatened to break his arm if Jason refused to sign the document. Which of
the following is true?
Answer: The contract is voidable because the consent is vitiated by violence
or physical coercion
3. Joshua donated a house and lot to Jason believing that Jason was his long-lost
brother. Joshua latter found out that Jason was not his brother. What is the
effect of this on the contract of donation?
Answer: The contract is voidable. Hence, Joshua can have the contract
annulled
4. If an offer made through an agent is accepted from the time it is communicated
to the principal
Answer: True
5. An example of an accidental element is a stipulation as to where the payment is
to be paid.
Answer: True
6. A contract entered into by both incapacitated persons are voidable
Answer: False
7. Which of the following is the object of a remuneratory contract?
Answer: The service or benefit already provided
8. This pertains to when one of the contracting parties is compelled by a reasonable
and well-grounded fear of an imminent and grave evil upon him, his spouse,
descendants or ascendants, or their property
Answer: Intimidation or moral coercion
 9. Which of the following is not true regarding an offer?
Answer: Business advertisements such as television commercials, classified
ads, billboards, and brochures are considered as an offer

10. It is a contract whereby the offeror gives the oferree certain period within which
to buy or not to buy a certain object for a fixed price
Answer: Option

ASSIGNMENT 008
1. What is general rule regarding forms of contract?
Answer: Contracts shall be obligatory, in whatever form they may have been
entered it, provided all the essential requisites, for their validity are present
2. When is a contract required to be in a certain form?
Answer: When some of the essential element is lacking
3. When it is absolutely impossible to settle doubts, refer to incidental
circumstances of anonerous contract, the least transmission of rights and the
interest shall prevail
Answer: False
4. When it absolutely impossible to settle doubts, and the doubts refer to incidental
circumstances of a gratuitous contract, the least transmission of rights and
interest shall prevail
Answer: True
5. This refer to contracts which are required by law for its efficacy to be in certain
specified form
Answer: Formal or solemn contract
6. If the law requires a document or other special form to a contract for mere
convenience but not for validity or enforceability, what is the right of the
contracting parties upon perfection of the contract?
Answer: The contracting parties may compel each other to observe the form
or document required by the law
 7. If the contract is not in the form provided by law for its enforceability, the
contract is __________
Answer: Valid
8. Reformation of the instrument is not the same as novation of a contract
Answer: True
9. A contract may be in a form or partly in writing and partly oral
Answer: True
10. This refers to the manner in which a contract is executed or manifested
Answer: Form of a contract

SHORT QUIZ 008

1. If terms of a contract are clear and leave no doubt upon the intention of the
contracting parties, the intent of the contracting parties shall still be construed
Answer: False
2. Which of the following contract is not required to be put into writing in order to
be valid?
Answer: Donations of personal property not more than Php 5,0000.00
3. Successors in interest, heirs and assigns of the injured party may also ask for
reformation of the instrument
Answer: True
4. In case of conflict between the intention of the parties and the words of
contract, which shall prevail?
Answer: The intention of the parties shall prevail over the words of the
contract
5. When it is absolutely impossible to settle doubts, and the doubts refer to
incidental circumstances of a gratuitous contract, what shall be the interpretation
of the contract?
Answer: The least transmission of rights and interest shall prevail
6. Contracts not governed by other articles with regard to its form must be in
writing, even a private one, when it involves among exceeding
Answer: Php 500.00
7. In legal effect, a contract partly in writing and partly oral is deemed an:
Answer: Oral contract
8. When, there having been a meeting of minds of parties to contract, their true
intention is not expressed in the instrument purporting to embody the
agreement, by reason of mistake, fraud, inequitable conduct or accident, what is
their remedy?
Answer: Reformation of the instrument
9. When it is absolutely impossible to settle doubts, and the doubts refer to
incidental circumstances of an onerous contract,
Answer: The doubt shall be settled in favor of the greatest reciprocity of
interest
10. The following may ask for the reformation of an instrument, except
Answer: The guilty party

ASSIGNMENT 009
1. This refers to a contract which has all the essential requisites of a contract but
which may be set aside by reason of equity on account of damage to one of the
parties or upon a third person
Answer: Rescissible contract
2. Unenforceable contract is one that cannot be enforced unless
Answer: True
3. This refers to the action brought to set aside a voidable contract
Answer: Annulment
4. What is the effect if the person employing violence or physical coercion that
causes obtained to be vitiated is not one of the contracting parties, i.e., a third
person?
Answer: The contract is voidable
5. Which of the following is not an example of rescissible contract?
Answer: Those which are entered into by guardian whenever the wards
whom they represent suffer lesion by more than one-fourth of the value of
the things which are the object thereof
6. The action for annulment may be instituted by all who are thereby obliged
principally or subsidiarily
Answer: True
7. Voidable contracts are valid until annulled
Answer: True
8. This refers to the remedy allowed by law to the contracting parties and even to
third persons, to secure the reparation of damages caused to them by a valid
contract, by means of the restoration of things to their condition at the moment
prior to the celebration of said contract
Answer: Rescission
9. If one of the party cannot restore what he is bound to return in the decree of
annulment, the other cannot be compelled to comply with what is incumbent
upon him
Answer: True
10. Once a party who has the right to seek annulment of the contract ratifies it, he
can still subsequently bring the action for annulment
Answer: False

SHORT QUIZ 009

1. A contract is entered into between A, a minor, and B, an insane person. C, the
father of A ratified the contract. Prior to the ratification, what was the status of
the contract between A and B?
Answer: Voidable
2. The action for recission must be brought within ____ years?
Answer: 4 years
3. This refers to a contract that is defective by reason of the incapacity or vitiated
consent of one of the parties
Answer: Voidable contract
 4. Through insidious words and machinations of B, A entered into a contract with
him. What is the remedy of A?
Answer: To ask annulment of the contract because there is dolo causante
5. Those 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 are considered as rescissible contract
Answer: True
6. Who among the following may not ratify a voidable contract?
Answer: The party who obtained consent of the other party by mistake,
violence, intimidation, undue influence, or fraud
7. What is the status of a contract entered into during a lucid interval?
Answer: Valid
8. A rescissible contract may be ratified and be cleansed from all of its defects
Answer: False
9. Which of the following is not one of the requisites for rescission?
Answer: The thing object of the contract must be legally in the possession of
a third person who acted in good faith
10. Which of the following is not an effect of ratification?
Answer: The contracting parties shall restore to each other the things which
have been the subject matter of the contract, with their fruits

ASSIGNMENT 010
1. Which of the following is not one of the requisites for rescission?
Answer: The thing object of the contract must be legally in the possession of
a third person who acted in good faith
2. A contract in entered into between A, a minor, and B, an insane person. C, the
father of A ratified the contract. Prior to the ratification, what was the status of
the contract between A and B?
Answer: Voidable
3. A rescissible contract may be ratified and be cleansed from all of its defects
Answer: False
4. Which of the following is not an effect of ratification?
Answer: The contracting parties shall restore to each other the things which
have been the subject matter of the contract, with their fruits
5. This refers to a contract that is defective by reason of the incapacity or vitiated
consent of one of the parties
Answer: Voidable contract
6. Those 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 are considered as rescissible contract
Answer: True
7. Who may not file an action for rescission?
Answer: None of the choices
8. For a payment to be rescissible, the debtor or payor must be insolvent
Answer: True
9. The available actions for voidable contracts are ratification, annulment, and
declaration of nullity
Answer: True
10.What is the status of a contract entered into during a lucid interval?
Answer: Valid

SHORT QUIZ 010

1. A and B, unemancipated minors, entered into a contract of sale of shabu. What
kind of defective contract is this?
Answer: Void because the object is illegal
2. Statue of Frauds covers agreement that by its items is not to be performed
within a month from the making thereof
Answer: False
3. Which of the following is not considered as an unenforceable contract?
Answer: Those were one of the parties is incapable of giving consent to a
contract
4. In an unenforceable contract entered by two incapacitated persons, ratification
by a parent or guardian makes the contract voidable at the instance of the other
party
Answer: True
5. Which of the following contracts of sale is covered by Statue of frauds, hence,
must be in writing to be enforceable?
Answer: Sale of goods, chattels, or things in action at a price not less than
500.00
6. Unenforceable contracts cannot be assailed by third persons i.e., they do not
have the right to defense of unenforceability
Answer: True
7. Ratification of a defective contract shall be express and implied or tacit
Answer: True
8. Statue of Frauds applies only to executory contract, not to completed, executed
or partially consummated
Answer: True
9. This refers to a contract that is defective by reason of the incapacity or vitiated
consent of both the parties
Answer: Unenforceable contract
10.Contract of sale of shabu is considered which kind of contract?
Answer: Void contract