The document discusses various legal concepts related to contracts. It provides definitions and examples of key terms like interpretation of contracts, void contracts, debtor, and negligence. It also discusses requisites of a valid tender of payment, quasi contracts, damages, and effects of annulment. Multiple choice questions are asked about these concepts, with one option being the correct answer in each case.
The document discusses various legal concepts related to contracts. It provides definitions and examples of key terms like interpretation of contracts, void contracts, debtor, and negligence. It also discusses requisites of a valid tender of payment, quasi contracts, damages, and effects of annulment. Multiple choice questions are asked about these concepts, with one option being the correct answer in each case.
The document discusses various legal concepts related to contracts. It provides definitions and examples of key terms like interpretation of contracts, void contracts, debtor, and negligence. It also discusses requisites of a valid tender of payment, quasi contracts, damages, and effects of annulment. Multiple choice questions are asked about these concepts, with one option being the correct answer in each case.
The document discusses various legal concepts related to contracts. It provides definitions and examples of key terms like interpretation of contracts, void contracts, debtor, and negligence. It also discusses requisites of a valid tender of payment, quasi contracts, damages, and effects of annulment. Multiple choice questions are asked about these concepts, with one option being the correct answer in each case.
None of the choices The following are impossible things except:
____________________________ is the determination of the
Interpretation of contracts meaning of the terms or words used by the parties in their written contract. contrary to traditions The following must not be stipulated in the contract, except: ___________________________contracts as by its nature of the Void defect, when cause, object or purpose of contract are contrary to law, good customs, morals, public order or public policy. The following are the third persons or interested parties who can pay Debtor to extinguish obligation except: words ought to be subservient to verba intentione non e contradebent inservare means the intent, not the intent to the _______________________________. word. None of the choices The following are kinds of Negligence except; ___________________ tends only to assure and pave the way for Perfected promise the celebration of a contract is actually made, the rights and obligations are not yet determined. The statement of a false cause in contracts shall render them void ___________. When the obligation consist in the delivery of an intermediate or generic thing, whose quality or circumstance have not been stated, TRUE 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. ___________________________contracts which are binding until Voidable they are annulled by a competent court. A contract which is the direct result of a previous illegal contract is TRUE also void and inexistent. In onerous transfer, if there is good faith, the contract may be FALSE rescinded. Contracts are perfected by mere consent, and from that moment, FALSE the parties are bound not only to fulfillment of what has been expressly stipulated but not to consequences Must be conditional The following are requisites of a valid tender of payment except: Sheila bought a refrigerator from May but Sheila did not pay the refrigerator. If after demand, Shiela still did not pay, May can sue TRUE Shiela in Court either to demand payment or for recovery of the refrigerator. ____________________ means man's innate sense or notion of Contrary to morals what is right and wrong is more or less universal. Under Quasi contract, consider a pizza that is delivered to the wrong address. The pizza has already been paid for. If the individual does not correct the delivery man and instead keeps the pizza, the court system could issue a quasi contract that would require the Individual Fair to pay back the amount of the pizza to the party that paid for the pizza. The contract is used to prevent any party from benefiting from the situation at the other party's expense; the restitution required under the contract is to make the situation____________. All of the choices Architect Velasco designed and supervised the house construction of Mrs Reyes. The parties failed to agree beforehand the professional the professional fee of Architect Velasco. How much is Mrs Reyes bound to pay Architect Velasco? ___________________________contracts as by its nature of the Voidable defect, consent is vitiated by mistake or error, violence and intimidation, undue influence, fraud or misrepresentation. An obligation having been annulled, the contracting parties shall restore to each other the things which have been the subject matter TRUE of the contract, with their fruits, and the price with its interest, except in cases provided by law. In any manner upholding with The following are cases when you have the right to damages tenor of obligation except: ____________________________ is the remedy allowed by law by means of which a written instrument is amended or rectified so as to Reformation 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. Those contracts which are absolutely simulated or fictitious are TRUE inexistent or void from the beginning. ____________________ are descriptive of statutes which requires Statute of Frauds certain classes of contracts to be in writing. Merely regulates the formalities of the contract necessary to render it enforceable. Concept of ________________________ is the meeting in one Merger person of the qualities of the creditor and the debtor with respect to the same obligation When only one prestation is agreed upon, but the obligor may Facultative render another substitution, the obligation is ________________________. If the terms of a contract are clear and leave no doubt upon the literal intention of the contracting parties, the_________________ meaning of its stipulations shall control. The duty to return a stolen carabao is an example of obligations Acts or omissions punished by law arising from ____________________. A ______________________ is a meeting of minds between two Contract persons whereby one binds himself with respect to the other, to give something or to render service. An offer becomes ineffective upon the death, civil interdiction, FALSE insanity, or insolvency of either party after acceptance is conveyed. ____________________is a characteristic of a contract which is Relativity binding only upon the parties and their successors. ___________________________contracts as by its nature of the Void defect, one of the essential requisites of a contract is lacking in fact or in law. Prescription of action for annulment-after prescription, contract can no longer be set aside ____________________. ________________________ where it restore to each other things Effects of Annulment which have been the subject matter of the contract including its fruits and the price with interest. Reparatory Under kinds of Penal clause as to purpose, _______________________ substitutes the damages suffered by the creditor; the matter of damages is generally resolved, and it represents the estimate of the damages that a party might suffer from non performance of the obligation, thereby avoiding the difficulties of proving such damages. When a mutual mistake of the parties causes the failure of the reformed instrument to disclose their real agreement, said instrument may be______________________. A simple mistake of account shall give rise to its correction _________________________. Under Action for damages, recoverable for damages include any FALSE and all damages that a human being may suffer. Responsibility for damages may be divisible. Yes, if Sonny does not pay , he Sonny borrowed P1,000,000 from Joy and agreed that in case of should sell the house and lot for non-payment on the date stipulated, Sonny's house and lot would be P1,000,000 to Joy. The sold to Joy for the amount of P1,000,000. Is the stipulation valid? agreement is not contrary to law. ___________________ is a kind of indivisible obligation even the Legal object or service may be divisible, an obligation is indivisible if so provided by law or intended by parties. Those contracts that are expressly prohibited or declared void by FALSE law are unenforceable. These contracts under voidable are binding, unless they are TRUE annulled by a proper action in court. They are susceptible of ratification. Civil action for recovery of civil liability arising from the offense is All of the choices impliedly instituted with the criminal action except; If mistake, fraud, inequitable conduct, or accident has prevented a annulment of contract meeting of the minds of the parties, the proper remedy is ____________________________. Pre contractual obligation Damages can be recovered if when contract is not perfected. The following are ways to extinguish or annulment of a current offer, Offeror makes a new offer except: Tony enters into a contract of sale with Sharon who paid the purchase of a motorcycle unit. Tony did not deliver the motorcycle Motorcycle unit unit. Identify the object/prestation in the statement as an essential requisite of an obligation. If the law requires a document or other special form, as in the acts and contracts enumerated in the contracts must appear in public Compel document, the contracting parties may _____________________each other to observe that form, once the contract has been perfected. An offer made through an agent is accepted from the time TRUE acceptance is communicated to him. Under obligation to give, when a minor 18-21 entered into a contract without parental consent , voluntarily pays the sum of money and TRUE delivers a fungible thing in fulfillment of an obligation, there shall be no right to recover the same from the oblige who has spent or consumed it in good faith. _________________________ property is alienated to the creditor Dation in payment in satisfaction of a debt in money shall be governed by laws of sales. Obligation General Rule: Nullity of penal clause does not nullify affect the principal ______________________. Under rescissible contracts, whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages TRUE suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them. Even though the object or service may be physically divisible but the All of the choices obligation is indivisible if When bilateral contracts are vitiated with vices of consent, they are voidable. rendered Ratification does not require the conformity of the contracting party TRUE who has no right to bring the action for annulment of contracts The receipt of the principal by the creditor, without reservation with FALSE respect to interest, shall give rise to the presumption that the interest has not been paid. Impaired The following are the requisites of consent, except: General rule: Nullity of principal obligation, also nullify Penal clause ____________________. ___________________________is an injury suffered by one of the Lesion parties by virtue of contract that is disadvantageous to him. The following are the duties of obligor under Obligation to Give, None of the choices except: ___________________________is a fear occasioned by the threat Reasonable fear must be reasonable and well grounded. _________________________ are interests on obligation which Compensatory have an extra contractual or delictual origin. Payments made in a state of insolvency for obligations to whose Rescissible fulfillment the debtor could not be compelled at the time they were effected, are also __________________________. Under Estoppel, when the obligee accepts the performance, knowing its incompleteness or irregularity and without expressing All of the choices any protest or objection, the obligation is deemed _______________________. absolute or relative Simulation of a contract may be ________________________. An obligation is a legal duty, however created, the violation of which TRUE may become the basis of an action of law. Insane during lucid interval The following cannot give consent to a contract except: Disagreement The following are characteristics of a contract, except: _______________________ extinguishes the action to annul a Ratification voidable contract Payment or Performance The most natural way to extinguish obligation. ___________________ is where courts must find that the contract Contrary to public policy contravenes some established interest in the society Under Void contracts, when the act is unlawful and constitutes a criminal offense and when only one is guilty, the innocent party __________________ may demand of what he has given without obligation to comply with his promise. No, after more than 6 years, the X bought a land from Y, paying him cash. Since they were friends, action to enforce the verbal they did not execute any document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the agreement has already elapsed. verbal sale to their father. Unwilling to do so, X's heirs filed an action for specific performance against Y. Will their action prosper? Under kinds of period or term as to source, Article 1197 Par 3, in every case, the court shall determine such period as may under TRUE circumstances have been contemplated by both parties. Once fixed by the courts, the period cannot be changed by them. ___________________________contracts as by its effect is valid Voidable until annulled by a competent court. Period is not the controlling motive The following are exceptions of demand except: Tony enters into a contract of sale with Sharon who paid the purchase of a motorcycle unit. Tony did not deliver the motorcycle Tony unit. Identify the passive subject in the statement as an essential requisite of an obligation. The interpretation of obscure words or stipulations in a contract shall FALSE favor the party who caused the obscurity. Under Void contracts, when the act is unlawful and constitutes a both parties will be prosecuted. criminal offense and both parties are guilty,_________________________. Rescissible _________________ contracts are in between void and valid. If the thing is lost through the fault of the debtor, he shall be obliged All of the choices to pay damages; It is understood that the thing is lost when it __________________________. Facts: The Dela Cruz sisters were the aunts of Dolores Rongavilla. They borrowed P2,000 from the Rongavillas to have their rooftop repaired. Later, petitioners went back to their aunts to have them sign a contract. Taking advantage of their lack of education, the sisters were made to believe that such document, typewritten in English, was just for the acknowledgment of their debt. After four Yes, because there is fraud and years, petitioners asked their aunts to vacate the land subject to absence of consent litigation claiming that she and her husband were the new owners. After verifying with the Registry of Deeds, the aunts were surprised that what they have signed was actually a deed of sale. Their land title was cancelled and the ownership was transferred to their nephews. The land was mortgaged with the Cavite Development Bank. ___________________________contracts as by its effect does not Void create rights and cannot impose obligation. If the doubts are cast upon the principal object of the contract in TRUE such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be null and void. When there is meeting of minds but the true intention is not TRUE expressed, a relief of reformation of the instrument may be sought by one of the parties. When mutual mistake of the parties causes the failure of the FALSE instrument to disclose their real agreement, said instrument may be annulled. Jean sold her condominium unit to Jane 'including all its contents'. In All of the choices 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? TRUE No contract may be entered into upon future inheritance except in cases expressly authorized by law. 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 Absolute contract be proved in a certain way, that requirement is ________________and indispensable. intentions of the parties In interpretation of contracts, what must prevail? In order to judge the intention of the contracting parties, their subsequent contemporaneous and _____________________________acts shall be principally considered. ___________________________contracts as by its nature of the Rescissible defect entered by a debtor who is in a state of insolvency like contracts entered in fraud of creditors ___________________________is a wrong or false notion about Mistake such matter, a belief in the existence of some circumstance, a fact or event which in reality does not exist ___________________________is an injury suffered by one of the Lesion parties by virtue of contract that is advantageous to him. Tony enters into a contract of sale with Sharon who paid the purchase of a motorcycle unit. Tony did not deliver the motorcycle Obligation to deliver unit. Identify the juridical tie in the statement as an essential requisite of an obligation. There is _________________ when through insidious words or machinations of one of the contracting parties, the other is induced Fraud to enter into a contract which, without them, he would not have agreed to. What action may be taken when the true intentions of the parties are Reformation not expressed in the instrument? Prestation In general, what is to be paid to extinguish obligation? No, Reformation will be the remedy because there is meeting If Eden sold to Yvonne a parcel of land but the land already has a of minds by both parties however residential building which is not mentioned in the agreement, will by mistake the parties true annulment be the remedy for this? intention was not reflected in the agreement. None of the choices The following are causes of reformation of instrument except: _______________________contract shall be resolved against the Adhesion party who prepared the contract and in favor of the one who merely adhered to it. There are pre-existing contractual The following are the requisites of Quasi Delict except: relations between the parties. Words which may have different significations shall be understood in TRUE that which is most in keeping with the nature and object of the contract. Alternative Agoncillo vs. Javier. Facts: Three debtors got a loan from Marino and bound themselves to pay P2,7000.00. The loan 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 debt, 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 allowed by the law. The agreement to convey the house and lot at an appraised valuation in the event of failure to pay the debt in money at its maturity is, however, in our opinion perfectly valid. It is simply an undertaking that if the debt is not paid in money, it will be paid in another way. The duty to pay a loan by virtue based on an agreement is an Quasi contracts example of obligations arising from ____________________. Void ___________________________contracts cannot be cured. __________________________ is a juridical necessity to give, to Obligation do or not to do. All other contracts where the amount does not exceed five hundred FALSE pesos must appear in writing. None of the choices The following are requisites of a valid payment except: A contract where consent is given through mistake, violence, voidable intimidation, undue influence, or fraud is voidable. The usage or custom of the place shall be disregarded in the FALSE interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established. _________________________is the result of injury (loss, hurt, Damage harm) X and Y, both Filipinos, were married and resided in Spain although Philippine law since they are both they intend to return to the Philippines at some future time. They Filipinos. have not executed any marriage settlements. What law governs their property relations? Under defective causes, lesion or inadequacy of cause is valid TRUE unless fraud or undue influence is valid. motive The following are essential requisites of a contract, except: No one may contract in the name of another without being TRUE authorized by the latter, or unless he has by law a right to represent him. As a general rule, contracts shall be ___________________ in Obligatory whatever form they have entered into, provided all essential requisites for their validity are present. Introduction The following are stages of a contract, except: ____________________, which is an object or undertaking to give, Prestation to do or not to do One of the requisites of prestation is that it must be possible, if not Void then the obligation is ___________________. TRUE Every person criminally liable is also civilly liable. A contract where consent is given through mistake, violence, TRUE intimidation, undue influence is voidable. Test of fraud Under rescissible contracts, does it prejudice the creditors? TRUE A contract entered into in the name of another by one who has no authority or legal representation, or who has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it has been executed, before it is revoked by the other contracting party. If the debtor knew the impossibility of things and services, he will be TRUE liable for damages. The various stipulations of a contract shall be interpreted together ________________, attributing to the doubtful ones that sense which may result from all of them taken jointly. ____________________is a characteristic of a contract wherein Mutuality validity and performance cannot be left at the will of one of them. An exception in the form of contracts is when the law requires that a TRUE contract be in order it may be valid or enforceable. The usage or custom of the place shall be borne in mind in the TRUE interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established. When there is mutual mistake, either party or the successor in TRUE interest may ask for reformation. Misrepresentation made in good faith is not fraudulent but may error constitute ________________. In case of a divisible contract, if the illegal terms can be separated TRUE from the legal ones, the latter may be enforced. If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold TRUE absolutely or with a right of repurchase, reformation of the instrument is proper. Contracts shall be obligatory, in whatever form they may have been TRUE entered into, provided all essential requisites for their validity are present. _________________________ obligation is based on equity and Natural natural justice. Under payment/performance, the delivery of promissory notes payable to order or bills or exchange or other mercantile documents Cashed shall produce effect of payment only when they are ___________________, or when through the fault of the creditor they have been impaired. Those contracts entered into in the name of another person by one FALSE who has been given no authority or legal representation, or who has acted beyond his powers are inexistent or void from the beginning. In a contract where both parties are incapable of giving consent, express or implied ratification by the parent, or guardian, as the case TRUE may be, of one of the contracting parties shall give the contract the same effect as if only one of them were incapacitated. Motive The following are essential elements of a contract, except: In acceptance of offer with a period, acceptance beyond the time FALSE fixed is not legally an acceptance but an old offer. _______________________ are contracts resolved against the Adhesion contracts party who prepared it and in favor of the one who merely adhered to it. Contracts that are ratified, where both parties are incapable of giving FALSE consent to a contract are unenforceable. ___________________________contracts whose objects are Void outside the commerce of man. The parties are free to determine the content of the contract insofar TRUE as it does not contravene the mandatory provisions of both the law and good morals. If the terms of a contract are clear and leave no doubt upon the TRUE intention of the contracting parties, the literal meaning of its stipulations shall control. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the counter offer contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a ____________________. Failure to disclose facts, when there is a duty to reveal them, as fraud when the parties are bound by confidential relations, constitutes __________________________. Contracts which are simulated or fictitious are Inexistent ____________________. ___________________________contracts as by its nature of the Rescissible defect is by representation if the absentees when the later suffers by lesion of more than 25% of the value of the thing. Absence of cause and unlawful cause produces no effect whatever. TRUE The cause is unlawful is it is in contrary to law, morals, good customs, public order and public policy. An employer may be civilly liable for the quasi delict or crime of his Diligence of Employers employee. When the law sets, or authorizes the setting of a minimum wage for TRUE laborers, and a contract is agreed upon by which a laborer accepts a lower wage, he shall be entitled to recover the deficiency. Those contracts whose cause, object or purpose is contrary to law, Inexistent morals, good customs, public order, or public policy. None of the choices There is no contract unless the following requisites concur , except: Contracts which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the FALSE value of the things which are the object thereof may not be rescinded. Under reciprocal obligations, the injured party may choose between fulfillment of obligation and the rescission of the obligation, with the Impossible payment of damages in either case. He may also ask rescission even after he has chosen fulfillment, if the latter should become _______________________. Mortgage, insurance and bonds are examples of natural elements of FALSE a contract. ___________________________contracts whose cause or object Void did not exist at the time of transaction. In general rule, payment to a wrong third party is valid but obligation FALSE is not extinguished even if in good faith of the debtor. Express ___________________________ is called when specifically stated. All things which are not outside the commerce of men, including TRUE future things, may be the object of a contract. Defects on their effects The following are characteristics of void contracts, except: If mistake, fraud, inequitable conduct or accident has prevented to FALSE have a meeting of the minds by both parties, the remedy is reformation. consent The following are elements of an obligation, except: _____________________________is one that by universally Illegal per se recognized standards is inherently or by its very nature bad or improper, immoral or contrary to good conscience. __________________________is a kind of Prestation which consist of the delivery of a movable or immovable thing, in order to create a To give real right or for the use of the recipient or for its simple possession or in order to return to its owner. ___________________________contracts as by its nature of the Unenforceable defect, was entered in the name of another without authority or in excess of authority. Pactum commisorum ____________________means automatic foreclosure. Manufacturers and processors of food stuffs, drinks, toilet articles and similar goods shall be liable for death or injuries caused by any TRUE noxious or harmful substances used, although no contractual relation exists between them and the consumers. The contract is not valid because Facts: The municipal council of Cavite by Resolution No. 10, leased the object or prestation is not to Rojas some 70 or 80 square meters of Plaza Soledad, on within the commerce of man, so condition that she pay rent quarterly in advance according to the the obligation of Rojas to restore schedule fixed in Ordinance No. 43, series of 1903 and that she and deliver the possession of the obligate herself to vacate said land within 60 days subsequent to land to the Municipality of Cavite, notification to that effect. Upon such notification, however, she which in turn restore to her the refused to vacate the land, forcing the municipality to file a complaint sums received from her as before the CFI to order her to vacate the land. After a hearing of the payment of rentals. case, the CFI dismissed the complaint. Expressly determined Law as a source of obligation requires In reciprocal obligations, there can only be delay in negative FALSE obligations (not to give or not to do) not in positive obligations (to give or to do). FALSE Obligations derived from law are presumed. There is ____________________________when one of the contracting parties is compelled by a reasonable and well-grounded intimidation fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants or ascendants, to give his consent. Those contracts where the consent is vitiated by mistake, violence, Voidable intimidation, undue influence or fraud. Under Quasi-delict, Teachers or Heads of establishment of arts and FALSE trades shall be liable for damages caused by their pupils or students or apprentices, as long as they are not in their custody. The following are reasons to annul a contract when it has prevented Equitable conduct the meeting of the minds of the parties, except: When there is unilateral mistake, the uninjured party may ask for FALSE reformation. When real agreement is valid. The following are cases where no reformation is allowed except: made by an expert and the other A mere expression of an opinion does not signify fraud, unless: party has relied on the former's special knowledge. _______________________prevent fraud and perjury in the enforcement of obligations depending for their evidence upon the Purpose of Statutes unassisted memory of witnesses by requiring certain enumerated contracts and transactions to be evidenced by a writing signed by the party to be charged. Rescission shall be only to the extent necessary to cover the TRUE damages caused. All other contracts where the amount exceeds five hundred pesos Writing must appear in _________________, even private one. The contract of sale is valid, Jeff sold to Philip his car worth 1M for only Php500,000. There is no because they have both question that the purchase price is grossly inadequate. Does Jeff consented with the amount at the have the right to have the sale annulled? time they entered into a contract. As a general rule, partial payment is not allowed, creditor cannot be All of the choices compelled to receive partial prestations same way debtor cannot be compelled to give partial payments except: There must be mutuality between the parties in contracts based on TRUE their essential equality, to which is repugnant to have one party bound by the contract leaving the other free there from. ___________________________contracts as by its nature of the Rescissible defect, declared by law to be the subject of rescission. Stipulations in favor of third persons may demand its fulfillment FALSE provided the acceptance is made after revocation. __________________________is a kind of Prestation which consist To do of all kinds of work or services, whether mental or physical. Joe and Jane were to marry in 3 months. Meantime, to express his No, since the donation and its affection, Joe donated a house and lot to Jane, which Joe wrote in a acceptance are not in a public letter to Jane. Jane wrote back, accepting the donation and took instrument. possession of the property. Before the wedding, however, Jane suddenly died of heart attack. Can Jane's heirs get the property? The object of the obligation and object of the contract created FALSE thereby need not be identical. Under obligations with Penal clause, the penalty may be enforced demandable only when it is ______________________ in accordance with the provision under Article 1226 par2. Facts: Cabaliw was the second wife of Benigno. During their marriage, they bought 2 parcels of land. They had a daughter named Soledad. Benigno abandoned his wife Cabaliw, thus the latter filed an action in court for support. The Court ordered Benigno Yes, Soterro knew about the to pay her P75 a month.However, Benigno did not pay and instead decision against Benigno, but sold their property to his son-in-law, Soterro. The transaction was proceeded with the purchase. done without Cabaliw's consent. Prior to the sale, Soterro already knew that there was a judgment rendered against his father-in-law but proceeded to buy the property anyway. When Cabaliw found out, she instituted an action along with her daughter to recover the properties. If the doubts are cast upon the principal object of the contract in FALSE such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be valid. Russel owed Mary the sum of P1, 000.00. By mistake, Russel paid TRUE P2, 000.00. Mary has the obligation to return the P1,000.00 excess because there was payment by mistake. _________________contract that cannot be enforced unless ratified Unenforceable in the manner provided by law. _____________________ is a unilateral proposition which one party Offer makes to the other for the celebration of the contract Those contracts whose cause, object or purpose is contrary to law, Inexistent morals, good customs, public order, or public policy are _________________. Period of prescription continues with respect to the obligation or The following are effects of Legal Compensation except: part extinguished. Roy and Carlos both undertook a contract to deliver a boat docked in Subic to Sam in Manila. Before they could deliver it, however, the Joint since the conversion of their boat sank in a storm. The contract provides that fortuitous event liability to one of indemnity for shall not exempt Roy and Carlos from their obligation. Owing to the damages made it joint. 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? ___________________________contracts as by its nature of the Void defect, expressly prohibited by law. Prestation due In general, what is to be paid in an obligation? In general, the following can be made or authorized to receive Third party, even in good faith payment except: ___________________________is a kind of compensation as to origin when decreed by court in a case where there is a counterclaim like defendant is the creditor of the plaintiff for an Judiciary unliquidated amount, sets up his credit as a counterclaim against the plaintiff and his credit is liquidated by judgment, thereby compensating it with the credit of the plaintiff. The procedure for the reformation of instrument shall be governed Supreme Court by rules of court to be promulgated by the _____________________________. ____________________is a characteristic of a contract which Obligatory force constitutes the law between parties. In contracts creating real rights, third persons who come into TRUE possession of the object of the contract are bound hereby, subject to the provisions of the Mortgage Law and Land Registration Laws. FALSE In general, creditor can refuse valid tender of payment. A contract to be effective as Cessation must not appear in a public FALSE document. Under voidable contracts, When the defect of the contract consists in the incapacity of one of the parties, the incapacitated person is restitution not obliged to make any ___________________except insofar as he has been benefited by the thing or price received by him. ___________________________contracts as by its effect is valid Unenforceable but cannot be enforced by a proper action in court. Promise The following are essential elements of a contract except: FALSE The particular motive of the parties entering into a contract are the same from the cause thereof. That is, the happening of the event which constitutes the condition. Condition subsequen or In other words, the fulfillment of which will extinguish an obligation Resolutory (or right) already existing. ___________________________contracts as by its nature of the Voidable defect, want of capacity by age or insanity. ____________________is a characteristic of a contract wherein entering into contract is guaranteed right by citizens. They are free Freedom to do so as long as it's not contrary to law, customs, public order and policy. They produce legal effects unless The following are characteristics of unenforceable contracts, except: set aside by a competent court. _______________________cleanses the contract from all its Ratification defects from the moment it was constituted. FALSE The action to claim rescission must be commenced within five years. Commission of crimes causes not only moral evil but also material TRUE damage. Suppose a stipulation or word written contract is susceptible of The one which would be effectual. various interpretations. What interpretation or meaning should be given to it? none of the given choices The following may not be reformed, except: The power to administer a property must appear in a public TRUE document Knowing that the car had a hidden crack in the engine, X sold it to Y Yes, since the defect was not without informing the latter about it. In any event, the deed of sale hidden; X knew of it but he acted expressly stipulated that X was not liable for hidden defects. Does Y in bad faith in not disclosing the have the right to demand from X a reimbursement of what he spent fact to Y. to repair the engine plus damages? It is considered loss of the thing due are through the following None of the choices reasons except: Under Article 1206, when only one prestation has been agreed FALSE upon, but the obligor may render another in substitution the obligation is called alternative. The following is a classification of a contract according to form gratuitous except: Partial fulfillment The following are the requisites of rescission except: ____________________________ is conditional type of obligation Suspensive where an obligation arises, but if the condition does not happen, obligation does not come to existence. Although the cause is not stated in the contract, it is not presumed to FALSE that it exists and illegal. Substantial breach of contract is where part of obligation is FALSE performed and gives rise to liability for damages. Upon the proposal of a third person, a new debtor substituted the The original debtor is freed of original debtor without the latter's consent. The creditor accepted the liability since novation took place substitution. Later, however, the new debtor became insolvent and and this relieved himof his defaulted in his obligation. What is the effect of the new debtor's obligation. default upon the original debtor? Juridical necessity ______________________connotes that in case of non compliance of the obligation, there will be legal sanction. Contracts undertaken in fraud of creditors when the latter cannot in TRUE any other manner collect the claims due them may be rescinded. ___________________________contracts as by its nature of the Unenforceable defect are covered by statute of frauds. Ervin can ask for the reformation Ervin sold his Toyota Car to Janice under a written contract of sale. of the contract due to the mutual What Janice thought Ervin was selling was his Hyundai Car. Can mistake even though Janice Ervin ask for the reformation of the contract against the objection of agreed to receive the Toyota Car. Janice who is agreeable for the sale of the Toyota Car? Contracts take effect only between the parties or their assigns and heirs, except where the rights and obligations arising from the contract are not transmissible by their nature, by stipulation, or by Relativity of contracts. 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 _________________________. To demand reimbursement to Under kinds of prestation on obligation not to do, the following are those who benefitted. the duties of the obligor except: When fulfillment of obligation is no longer possible, rescission takes TRUE place. To determine the degree of intimidation, all of the choices _________________________ of the person shall be borne in mind TRUE Various stipulations of a contract shall be interpreted together. Even in the absence of demand, debtor incurs delay if he TRUE acknowledges his delay. Request for extension of time for payment is not sufficient though, the acknowledgement must be express. Delay Mora means _________________. Mortgage, guaranty and bond are examples of Accidental _______________________ elements of a contract The action for rescission is ______________________; it cannot be subsidiary instituted except when the party suffering damage has no other legal means to obtain reparation for the same. 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 dura lex sed lex obligation to reimburse John for the expenses incurred by him and to pay him for his services. It is based on the principle _______________________________________. Retroactive The following are requisites of obligation with a period except: pari delicto ___________________________means both are at fault. The action for annulment of contracts shall not be extinguished FALSE when the thing which is the object thereof is lost through the fraud or fault of the person who has a right to institute the proceedings. Words ought to be subservient to the intent, not the intent to the TRUE word. When criminal action is instituted, the civil action for the recovery of the civil liability arising from the offense charged shall deemed The offended parties waives the instituted with the criminal action civil action unless__________________________________, reserves the right to institute it separately or institutes the civil action prior to the criminal action. __________________ is an essential element of a contract which is cause more on the proximate purpose that the contracting parties have in view at the time of entering into a contract. An absolutely simulated or fictitious contract is void _____________________. Under Alternative Obligations, the following are the effects of loss or impossibility of one or all prestations or when the debtor shall lose None of the choices the right of choice, when among the prestations whereby he is alternatively bound only one is practicable except: ________________________ conditions as to possibility which are Impossible those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends on them. Obligations arising from the contract have the force of law between TRUE contracting parties. Not presumed Legal Subrogation is ___________________. F has no right being a third person D sold E a parcel of land worth 1M. E failed to pay D. Has F has the who does not concern any right to have the sale declared void by court on the ground of fulfillment of the obligation. absence of cause for non payment of price? When one of the parties brought in action to enforce the instrument, TRUE he cannot subsequently ask for its reformation. Contracts without cause, or with unlawful cause, produce no effect TRUE whatever. The cause is unlawful if it is contrary to law, morals, good customs, public order or public policy. Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owned, without specifying Void. 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? nobody can take the law into his Under Void contracts, action to declare nullity is necessary own hands because______________________________. All services which are not contrary to law, morals, good customs, TRUE public order or public policy may likewise be the object of a contract. The following crimes are exempted from civil liability under acts None of the choices punishable by law except: A car distributor placed an order for 20 luxury cars from a car maker company provided that the latter deliver the goods within 12 months. It was expressly agreed and stipulated in writing that full payment depended on the prompt delivery of the goods. If the cars are Yes as per conditional obligation. delivered within the agreed period, the car company acquires to right to demand full payment for the purchase and its obligation to deliver is extinguished. Conversely, if the cars are not delivered after the expiration of the period, does the obligation to pay by the car distributor's extinguished? rebellion The following are examples of 'Acts of God' except; _____________________________of the law excuses no one from Ignorance compliance therewith Under Quasi contracts, when funeral expenses are borne by the third person, without the knowledge of the relatives who are obliged FALSE to give support to the deceased, said relatives must reimburse to the third person, even without claim was made by the third person. Real contracts, such as deposit, pledge and Commodatum, are not TRUE perfected until the delivery of the object of the obligation. The contract with absolute nullity and produces no effect as if it had TRUE never been executed or entered into. ___________________ power belonging to a person over specific Real Right thing, without a passive subject individually determined against whom such rights may be personally exercised. Those contracts where one of the parties is incapable of giving Voidable consent to a contract; This happens when the creditor makes a demand and the obligor mora solvendi fails to deliver the thing. A clothing company engaged a celebrity as its product ambassador so long the latter does not endorse a particular rival business. If the TRUE celebrity is caught promoting the products of that rival business, the clothing company may terminate the contract as the resolutory condition took effect. Contract is perfect when the offeror or counter offeror learn about TRUE the acceptance. ________________________may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; Reformation otherwise, upon petition of the injured party, or his heirs and assigns. The intention of the parties In interpretation of contracts, what should be followed? Its terms or because their will has the force of the intention of the parties? Why? law between them. Obligations arising from contracts have the force of law between TRUE contracting parties and should be complied with good faith. Obligation arising from Law or 'Obligation ex lege' is imposed by law TRUE itself and must be expressly or impliedly set forth and cannot be presumed. He can accept all 6,000 apples A buyer ordered 5,000 apples from the seller at P20 per apple. The and pay the seller at P20 per seller delivered 6,000 apples. What are the rights and obligations of apple. the buyer? The following are the primary remedies of creditor in case of breach Accion Subrogatoria except: The duty to refund an "over charge" of money because of solutio indebiti (payment by mistake) or negtiorum gestio (management of Law another's property) is an example of obligations arising from ____________________. Those contracts which contemplate an impossible service are TRUE inexistent or void from the beginning. Time is the controlling motive Demand is not necessary to incur delay when: ___________________ pertains to certain percepts that cannot be Contrary to good customs universally recognized as moral, sometimes they only apply to certain communities or localities. ________________________ is no impediment to the reformation Statute of Frauds of an instrument. _____________________________ is a kind of payment when a Abnormal debtor is forced by means of judicial proceeding either to comply with the prestation or pay indemnity. The cession, repudiation or renunciation of hereditary rights or of FALSE those of the conjugal partnership of gains, may not appear in public document. Accion Pauliana The following are primary remedies in case of breach except: ___________________________contracts as by its nature of the Unenforceable defect, both parties are legally incapacitated to act. A contract is to be judged by its character, courts will look into TRUE substance and not to the mere form of the transaction. The following are the exceptions under transmissibility of rights of None of the choices fulfillment of obligation, except: Yes, automatic rescission is X sold Y 100 sacks of rice that Y was to pick up from X's rice mill on allowed since, having the a particular date. Y did not, however, appear on the agreed date to character of movables and take delivery of the rice. After one week, X automatically rescinded consumables, rice can easily the sale without notarial notice to Y. Is the rescission valid? deteriorate. To return money paid by mistake Below are examples of obligations arising from the law except: All of the choices Partial payment is not allowed except: In order to judge the intention of the contracting parties, their TRUE contemporaneous and subsequent acts shall be principally considered. If the debt produces interest, payment to the principle should have TRUE not deemed have been made until the interest has been covered. When one of the parties is unable to read, or if the contract is in a language not understood by him, and mistake or fraud is alleged, TRUE the person enforcing the contract must show that the terms thereof have been fully explained to the former. ______________________ is the determination of the meaning of Interpretation of contracts the terms or words used by the parties in their written contract. Demand may be in any form, provided it can be proved. Burden of TRUE proof of demand on creditor. Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been TRUE expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law. _________________ cleanses the contract from its defect from the Effects of Annulment moment it was constituted. ______________________________ is a unilateral proposition Offer which one party makes to the other for the celebration of the contract. Culpa Levis The following are kinds of negligence except: Definite things The following are ways to test divisibility of obligations, except: Under payment by Cession, the debtor may cede or assign his There is stipulation to the property to his creditors in payment of his debts unless contrary. _______________________________. Dolo ________________________ means deceit or fraud. _______________________evidence of agreement and is used to Written memorandum/note show the intention of the parties. Third person is not entitled to full The following are the effects if a third person payment which is not reimbursement an interested party with debtor's consent, except: They are not contrary to law, Parties may freely enter into any stipulations or contracts, provided morals, good customs, _______________________. The determination of the performance may be left to a third person, TRUE whose decision shall not be binding until it has been made known to both contracting parties. All other contracts specially declared by law to be subject to Rescissible rescission. There is solidarity liability only when obligation expressly so states TRUE or when the law or when the nature of the obligation requires solidarity. The relativity as a characteristic of contract will take effect only TRUE between parties, their assignments and heirs. ___________________________contracts are those absolutely Void simulated or fictitious. The procedure of reformation of instrument shall be governed by Rules of court _____________________of the Supreme Court. If X has the knowledge that the X sold his fishing boat to Y who intends to use the boat for boat will be used will make the smuggling. Is the contract of sale illegal? sale illegal. The usual exaggerations in trade, when the other party had an fraudulent opportunity to know the facts, are not in themselves ________________________. In an obligation to give like Avon Products, the passive subject is the seller, the active subject is the buyer, the prestation is "to give," To deliver the Avon Products specifically to deliver the Avon Products, and the juridical tie is a source of obligation arising from contract. within the commerce of man What is the object in a contract of sale? The various stipulations of a contract shall be interpreted together, TRUE attributing to the doubtful ones that sense which may result from all of them taken jointly. The head of a family that lives in a building or a part thereof is TRUE responsible for damages caused by things thrown or falling from the same. Declares inefficiency which The following are kinds of unenforceable contracts, except: contract already carries in itself. _______________________is the thing, right or service which is the Object subject matter of the obligation arising from the contract _______________________ any person may invoke the inexistence accion reinvindicatoria of the contract whenever juridical effects founded thereon are asserted against him. ___________________________contracts are those contemplate Void an impossible service. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their TRUE true intention, the former may ask for the reformation of the instrument. In solidum The following are words indicating joint obligation except: Debtor is aware of insolvency at The following are effects of delegacion except: the time he deligated his debt Possible to foresee the event The following are the requisites of fortuitous event under which constitute caso fortuito and extinguishment of liability in case of breach except: avoidable General rule: Creditor cannot be compelled to receive partial TRUE prestations as well as Debtor cannot be compelled to pay partial payments. ___________________________ is a kind of Novation as to effect Partial where only a modification or change in some principal conditions of the obligation. ________________________ is a wrong or false notion about such Mistake or error matter. Under subsidiary liability of a crime, innkeepers, tavern keepers or FALSE any other persons or corporation, shall not be civilly liable for crimes committed in their establishment. Contracts of Adhesion shall be resolved against the party who TRUE prepared the contract and in favor of the one who merely adhered to it. A person's conduct expected of a reasonably prudent person acting Elements of negligence are the following except: under similar circumstances. Those contracts undertaken in fraud of creditors when the latter Rescissible cannot in any other manner collect the claims due them. Rescissible contract that has caused a particular damage to one of TRUE the parties or to a third person and which for equitable reasons may be set aside even if valid. ___________________________contracts as by its nature of the Rescissible defect refer to things in litigation without the knowledge and approval of litigants or competent judicial authority. In order that fraud may make a contract voidable, it should be TRUE serious and should not have been employed by both contracting parties. When you interpret a contract you must look for the contractual TRUE intent. How payment is made? A debt shall not be understood to have been TRUE paid unless the thing or service which the obligation has beencompletely delivered or rendered as the case may be. Under obligations, an active subject, also known as Obligee or creditor the________________, who has the power to demand the prestation Those contracts which are entered into by guardians whenever the Rescissible wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof. _______________________contract in which consent of one of the Voidable parties is defective. When the offer or acceptance made during a hypnotic spell, it voidable becomes: Under Void contracts, when the act is unlawful but does not Neither party may recover what he constitute a criminal offense at the same time both parties are at has given by virtue of the contract. fault,_____________________________ when the option is founded upon a When the offerer has allowed the offeree a certain period to accept, consideration, as something paid the offer may be withdrawn at any time before acceptance by or promised. communicating such withdrawal, except: The interpretation of obscure words or stipulations in a contract shall FALSE favor the party who caused the obscurity ___________________________contracts as by its effect is valid Rescissible until rescinded . Under Estoppel, when oblige accepts the performance knowing its incompleteness or irregularity and without expressing any protest or Fulfilled/complied with objection, the obligation is deemed ____________________________. _______________________ contracts are essentially agreements Gratuitous to give donations. An accounting firm and a computer shop are two separate businesses that do not have any connection. If the accounting firm buys 20 sets of computers for P400,000.00 from the computer shop, Delivery of the 20 sets of then a legal connection (juridical relation) is created between the two computers. enterprises. With a perfected written contract of sale, the accounting firm may demand from the computer shop the ______________________. The duty to repair damages due to negligence is an example of Acts or omissions punished by law obligations arising from ____________________. TRUE A qualified acceptance constitutes a counter offer. Under kinds of prestation on obligation to do, the duty of the obligor to pay damages as obliged to do something fails to do it , the will be TRUE no action for compliance because that would be involuntary servitude as prohibited by the constitution. Acceptance made by letter or telegram does bind the offerer except from the time it came to his knowledge. The contract, in such a FALSE case, is presumed to have been entered into in the place where the offer was made. Civil obligations arising from Crime/s without civil liability are the following except; criminal offense. If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold Reformation absolutely or with a right to repurchase, __________________________of the instrument is proper. Obligation arising from quasi- delict is demandable not only for one's Liability for fault for others own acts or omissions but also for those persons for whom one is responsible. ___________________________contracts can be cured by Unenforceable ratification, acknowledgement, acceptance or confirmation. In impossibility of things and services, the impossibility must be TRUE actual and contemporaneous with the making of the contract and not subsequent. Mistake as to the identity or qualifications of one of the parties will vitiate _____________________consent only when such identity or qualifications have been the principal cause of the contract. Sharon 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. Rescission (cancellation) of the When the thing deteriorates with the debtor's fault, the creditor may obligation with indemnity for choose one of the following: damages Contracts agreed to in a state of drunkenness or during a hypnotic voidable spell are ____________________. The fixing of a price may be determined by one of the contracting FALSE party for the sale to be perfected. all of the choices Acceptance may be ____________________ or implied. The determination of the performance maybe left to a third person, FALSE whose decision is binding even if not known to both parties. FALSE Voidable contracts may not be rescinded. Advertisements for bidders are simply ____________________________ to make proposals, and the invitations advertiser is not bound to accept the highest or lowest bidder, unless the contrary appears. There is __________________________ when, through insidious words or machinations of one of the contracting parties, the other is fraud induced to enter into a contract which, without them, he would not have agreed to. Non existent ________________ contract which is an absolute nullity. The prescription period to file for action for annulment of contract is 4 ______________years. Damages can be recovered when contract is not perfected if TRUE withdrawal of the offer must be without any illegitimate cause. Acceptance made by a letter or telegram does not bind the offerer except from the time it came to his knowledge. The contract in such TRUE case is presumed to have been entered in the place where the offer was made. A ___________________is an agreement between two parties without previous obligations to one another that has been created Quasi contract and legally recognized by the court system. Under this contract, neither involved party is expected to create such an agreement. No, since the seller owns no inheritance while his predecessor Can future inheritance be the subject of a contract of sale? lives. _______________________ contracts, the cause is understood to Onerous be, for each contracting party, the prestation of a thing or service by the other. ___________________means one party bears the lion's share of Pactum leonina the risk. ___________________is a meeting of minds between two persons Contracts whereby binds himself, with respect other, or to give something or to render some service. Change in the object of What is the objective of Novation? prestations The law presumes that G must G gave Php 100,000 to H who signed a receipt stating: "This is to have received a service from H acknowledge payment of G in the amount of Php100,000". G later and that the same is lawful. If G claims otherwise, he must prove complains the he receives nothing from H for the Php 100,000. Is H his allegation that H is bound to bound to return the Php 100,000? return the 100,000 to G. ________________________contracts which are in between valid Rescissible and void. Fernando executed a will, prohibiting his wife Marina from No, since such prohibition is remarrying after his death, at the pain of the legacy of P100 million authorized by law and is not in her favor becoming a nullity. But a year after Fernando's death, repressive; she could remarry but Marina was so overwhelmed with love that she married another must give up the money. man. Is she entitled to the legacy, the amount of which is well within the capacity of the disposable free portion of Fernando's estate? _______________________ does not affect the validity of the Motive contract. Baldo, a rejected suitor, intimidated Judy into marrying him. While No, since the marriage was she wanted to question the validity of their marriage two years after merely voidable and Judy ratified the intimidation ceased, Judy decided in the meantime to freely it by freely cohabiting with Baldo cohabit with Baldo. After more than 5 years following their wedding, after the force and intimidation Judy wants to file a case for annulment of marriage against Baldo on had ceased ground of lack of consent. Will her action prosper? FALSE Impossible things or services can be the object of contracts. ________________________are all kinds of things and interests Outside the commerce of man whose alienation or free exchange is restricted by law or stipulation, which parties cannot modify at will. ___________________ contract that has caused a particular Rescissible damage to one of the parties or to a third person and which for equitable reasons may be set aside even if valid. 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 TRUE plaintiff, he may, if public policy is thereby enhanced, recover what he has paid or delivered. When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, Reformed the instrument does not express the true intention of the parties, the courts may order the instrument be _____________________. TRUE No liability for fortuitous events intervene. Insane person acting in lucid The following are exempting circumstances, do not incur criminal interval liability but not exempt from civil liability except: imperfected promise ______________________ means mere unaccepted offer. Within the commerce of man The following may not be the objects of a contract except: __________________________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 Negotiorum gesto power from the latter, is obliged to continue the same until the termination of the affair and its incidents or to require the person concerned to substitute him, if the owner is in the position to do so. ___________________________contracts can be cured by Rescissible ratification or prescription. Meeting Consent is manifested by the _____________________ of the offer and acceptance upon the thing and the cause which are to constitute a contract. None of the choices The following are requisites of condonation, except: Under Quasi-delict, Guardians are liable for damages caused by TRUE minors or incapacitated person who are under their authority and live in their company. TRUE Creditor should make demand before debtor incurs delay. Under action of undoing, when the obligation consist of not doing TRUE and the obligor does what has been forbidden him, it shall be undone at his expense. Civil obligations arising from criminal offence must be governed by TRUE the penal laws In bilateral contracts, fulfillment must not be simultaneous or FALSE reciprocal. __________________________is a kind of Prestation which consist Not to do in abstaining from such act. Elements of Obligation where in the obligee is bound to perform the Passive Subject prestation . (obligor/debtor) Under Quasi-delict, the State is responsible in like manner when it acts through a special agent but not when the damage has been TRUE caused by the official to whom the task done properly pertains, in which case what is provided in article 2176 shall be applicable. ____________________________ is conditional type of obligation Suspensive where an obligation arises, but if the condition does not happen, obligation does not come to existence. ___________________________is kind of conditional of obligation Potestative which depends upon the will of the contracting parties, in the power of one party to realize or prevent it. Condition ___________________ determines the existence of an obligation. There is a presumption under period or term that it both benefits the debtor and creditor unless from the tenor of both circumstances it TRUE should appear that the period has been established in favor of one or the other. Creditor can collect other damages in addition to penalty, if Under Obligations with Penal clause, the following are the effects of the debtor is guilty of fraud in the penal clause except: fulfillment of obligation. If the obligation consist in the payment of a sum of money and the debtors incurs delay, the indemnity of damages, there being no 6 stipulation to the contrary, shall be the payment of interest agreed upon, and in the absence of the stipulation, the legal interest will be ___________percent per annum per Article 2209. Law as a source of obligation - The law may impose an obligation on a business. These law-based obligations are never presumed. TRUE There must be a legal provision which serves as the basis. Necessarily, the demandable obligations are only those expressly provided by the law. A contract of sale and a contract of loan are examples of Prestation to give ________________________. There must be an act or omission. Jenny was driving under the influence of alcohol at a speed of 120 kph. Jenny hit the car of Neil, causing damage to the car which required P100,000.00 to repair. Neil was also physically injured and incurred medical expenses in the amount of P100,000.00. Requisites of Quasi Delict: Jenny drove and hit Neil's car which constitutes ____________________ as a requisite of quasi delict. Jenny was negligent for driving the car above the speed limit and under the influence.The collision injured Neil and damage to Neil's car. There is no contract between Jenny and Neil. In an obligation to pay taxes, the passive subject is the taxpayer, the active subject is the government through the Bureau of Internal To pay taxes Revenue, the prestation is "to give," specifically__________________, the juridical tie is a source of obligation arising from law. Obligations arising from Contracts or 'Obligation ex contractu' arise from stipulations of the parties: meeting of the minds / formal agreement must be complied with in good faith because it is the TRUE "law" between parties; neither party may unilaterally evade his obligation in the contract, unless: contract authorizes it or other party assents ____________________ is contracting for or receiving something in excess of the amount allowed by law for the loan or forbearance of Usury money, good of chattels. It is also taking more interest for the use of money, goods or chattels or credits than the law allows. Default ends from the moment creditor demands the performance of FALSE obligation. Obligations arising from contracts have the force of law between the FALSE contracting parties and should be complied with in bad faith. Elements of Obligation where in there is power to demand the Active Subject prestation or object. (obligee/creditor) Concept of ________________________ is the meeting in one Merger person of the qualities of the creditor and the debtor with respect to the same obligation Entitlement of fruits/interests from The following are the rights of the creditor under obligations to give the time the obligation to deliver under generic thing except: arises Fortuitous event The following are the modes of breach of obligation except: _______________________ is wrongful act or omission which Injury causes loss or harm to another. Would a prudent man, in the position of the person to whom Test of negligence negligence is attributed, foresee harm to the person injured as reasonable consequence of the course about to be pursued? Pactum commisorum ____________________means automatic foreclosure. The procedure of reformation of instrument shall be governed by Rules of court _____________________of the Supreme Court. As a general rule, contracts shall be ___________________ in Obligatory whatever form they have entered into, provided all essential requisites for their validity are present. _______________________prevent fraud and perjury in the enforcement of obligations depending for their evidence upon the Purpose of Statutes unassisted memory of witnesses by requiring certain enumerated contracts and transactions to be evidenced by a writing signed by the party to be charged. Russel owed Mary the sum of P1, 000.00. By mistake, Russel paid TRUE P2, 000.00. Mary has the obligation to return the P1,000.00 excess because there was payment by mistake. The law presumes that G must have received a service from H G gave Php 100,000 to H who signed a receipt stating: "This is to and that the same is lawful. If G acknowledge payment of G in the amount of Php100,000". G later claims otherwise, he must prove complains the he receives nothing from H for the Php 100,000. Is H his allegation that H is bound to bound to return the Php 100,000? return the 100,000 to G. Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owned, without specifying Void. 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?