1.

Contracts shall be obligatory, in whatever form they may have been entered into, provided
all the essential requisites for their validity are present. TRUE

2. Donation of personal property whose value exceeds P500 may be done orally. FALSE

3. Agreements regarding payment of interest in contracts of loan must be in writing. TRUE

4. Donation of immovable properties must be made in a public document. FALSE

5. Annulment of document is a remedy in equity by means of which a written instrument is

made or construed so as to express or conform to the real intention of the parties when some
error or mistake has been committed. FALSE

6. If the mistake was mutual, reformation may be asked by either party, or his successors in
interest, such as his heirs or assigns. TRUE

7. When a mutual mistake of the parties causes the failure of the instrument to disclose their
agreement, reformation is available. TRUE

8. If the terms of a contract are clear and leave no doubt upon the intention of the contracting
parties, the literal meaning of its stipulation shall control. TRUE

9. If the words appear to be contrary to the evident intention of the parties, the former (words
appearing) shall prevail over the latter (intention of the parties). TRUE

10. The interpretation of obscure words or stipulation in a contract shall not favor the party
who caused the obscurity. TRUE

11. In the construction of an instrument the intention of the parties is to be pursued. TRUE

12. Written words control printed ones. When an instrument consists partly of written words
and partly of a printed form, and the two are inconsistent, the former controls the latter. TRUE

13. When the doubts refer to the incidental circumstances of a gratuitous contract, the more
transmission of rights and interests shall prevail. FALSE

14. The usage or custom of the place shall be bome in mind in the interpretation of the
ambiguities of a contract. TRUE

15. The various stipulation of a contract shall be interpreted together. TRUE

16. When the contract is unenforceable because of failure to comply with the statute of frauds,
reformation is not applicable. TRUE
17. If some stipulation of any contract should admit of several meanings, it shall be understood
as bearing that import which is most adequate to render it effectual. TRUE

18. If the contract is onerous, The doubt shall be settled in favor of the greatest reciprocity of
interests. TRUE

19. An instrument may be construed according to usage. TRUE

20. The language of a writing is to be interpreted according to the legal meaning it bears in the
place of its execution, unless parties intended otherwise. TRUE

21. Match the statement under the first column with the items under the second column.

-Contracts shall be _______, in whatever form they may have been entered into, provided all
the essential requisites for their validity are present. Obligatory

-Donation of personal property whose value exceeds five hundred (500) pesos must be
________. In writing

-Donation of immovable properties must be ________. In a public document

-It is a remedy in equity by means of which a written instrument is made or construed so as to

express or conform to the real intention of the parties when some error or mistake has been
committed. Reformation

-If the terms of a contract are clear and leave no doubt upon the intention of the contracting
parties, the _______of its stipulation shall control. Literal meaning

-The remedy of reformation of an instrument is grounded on the principle of _______. Equity

-If the contract is onerous, the doubt shall be settled in favor of _______. Greatest reciprocity
of interests

-When the doubts refer to the incidental circumstances of a gratuitous contract, the ________
shall prevail. Least transmission of rights and interests

-Partnership where immovable property or real rights are contributed to the common fund
must be _______. In a public document

-Agreements regarding payment of interest in contracts of loan must be _________. In writing

22. An instrument authenticated buy a notary public or a competent public official with the
formalities required by law. PUBLIC DOCUMENT
23. In order that an action for reformation of instrument may prosper, the following requisites
must concur, except: THE INSTRUMENT EXPRESSES THE TRUE INTENTION OF THE PARTIES TO
THE CONTRACT.

24. Y entered into a contract of mortgage with X, T the clerk of Y typed the document. Due to
T’s negligence, the document made was that of sale instead of mortgage. Which is correct?
REFORMATION OF THE INSTRUMENT IS PROPER

25. Is the act of making intelligible what was before not understood, ambiguous, or not
obvious? INTERPRETATION

26. A orally sold to B his house at #47 Lagawa, Mt. Province. In the written deed of sale, both
forgot the true number of the house and instead wrote the #47 Lagawa, Mt. Province. The
remedy shall be: REFORMATION OF INSTRUMENT BECAUSE OF MUTUAL ERROR

27. The intent of the parties to instrument is embodied in the writing itself, and when the
words are clear and unambiguous, the intent is to be discovered only from the express
language of the agreement.’’ PLAIN MEANING RULE

28. A principle which allows court in some cases to search beneath the semantic surface for
clues to meaning. FOUR CORNER RULE