Business Law

General Provisions on Contracts Quiz

Quizzes
Explain or state briefly the rule or reason for your answer.

(a) Sam Page and Kara Madrid entered into a contract not specifically provided in the Civil
Code. Is the contract valid and binding?
- The contract will still be considered valid and binding. As long as the contract
meets the essential elements required in a contract with the acceptance of
both parties, it is valid even though it is not specifically provided in the Civil
Code.
(b) Biana Liong (Seller) and Che Filomeno (Buyer) entered into a contract of sale. It was
agreed that the price shall be determined by Jelly Revilla (a third person). Can Biana
Liong (Seller) or Che Filomeno (Buyer) refuse to be bound by Jelly Revilla’s
determination of the price if she does not agree with the amount thereof?
- No, Biana Liong and Che Filomeno cannot refuse to be bounded by Jelly
Revilla’s determination of the price. In different terms, according to Art.
1309, Jelly’s price decision will only be binding if it is made known to Biana
Liong and Che Filomeno. However, if Jelly’s price decision is evidently
inequitable or unjust, the determination of price by Jelly will not be
obligatory anymore. The court will be the one to decide for an equitable
determination of price instead.
(c) Shannon Robinson (Debtor) owes Yam Concepcion P 20,000. Both are house painters. It
was agreed that Shannon Robinson instead of paying Yam Concepcion, will paint the
house of Kara Madrid to which Kara Madrid expressed her conformity to Yam
Concepcion, whose service as a painter was previously contracted by Kara Madrid. Has
Kara Madrid the right to enforce the stipulation between Shannon Robinson (Debtor)
and Yam Concepcion?
- If Kara has communicated her acceptance of Shannon doing the obligation of
Yam Concepcion, Kara becomes a party in the contract and Yam will be the
one to enforce the stipulation to avoid any breach of contract. Shannon is
the debtor, Kara becomes the beneficiary, and Yam will be the one to bring
action of the enforcement.

(d) Lauren Reid made an office desk for Ashley Vee. Lauren Reid told Ashley Vee, that the
latter may pay whatever amount she would like to pay for it. When the desk was
finished Ashley Vee offered to pay P 2,000 but Lauren Reid demand P 3,000 its fair
value. Is Lauren Reid entitled to P 3,000?
- No, Lauren Reid is not entitled to demand P 3,000 to Ashley Vee. It was
already agreed that Lauren will let Ashley she will pay whatever amount she
would want to pay for the office desk. Lauren did not settle for a definite
amount which makes him not entitled to demand payment other than what
Ashley has decided to pay.