LAW ON OBLIGATIONS AND CONTRACTS

CHAPTER 1 QUIZ
(ARICLES 1156-1162 OF THE CIVIL CODE OF THE PHILIPPINES)

I. TRUE OR FALSE (20 items)

False 1. Obligations arising from law are (not) presumed. Only those expressly
determined in this Code or in special laws are demandable. (ART. 1158)
False 2. The extent of the civil liability arising from crimes is governed by the
Civil Code and other special laws. (Revised Penal Code and Civil Code)
True 3. A practice or custom is, as a general rule, not a source of a legally
demandable or enforceable right.
True 4. Delicts are not as broad as quasi-delicts because the former are
punished only if there is a penal law clearly covering them, while the latter include
all acts in which any kind of negligence intervenes.
True 5. A legal tie is also called Vinculum Juris.
True 6. In a quasi-contract, there is no consent but the same is supplied by
fiction of law.
True 7. Solutio indebiti applies when payment is made through mistake.
False 8. Manresa defines obligation as “a legal relation established between
one party and another, whereby the former is bound to the fulfillment of a
prestation which the latter may demand of him”. (latter, former)
False 9. In an action to rescind a contract of sale on installment basis, for non-
payment, the cause of action arises at the time the first installment is not paid.
(last)
False 10. Damages are the harm, hurt, or loss one acquires from an injury.
(damage)
True 11. From the viewpoint of the prestation, obligation may either be personal
or real.
False 12. Guardians not being liable for damages caused by the minors or
incapacitated persons who are under their authority and live in their company is an
example of quasi-delict. (being liable)
True 13. Once a contract is perfected, valid contracts have the force of law
between the parties who are bound to comply therewith in good faith.
False 14. Actions based upon a written contract should be brought within 10
years from the time the cause of action accrues. (right of action)
True 15. Henry, 19 years-old, bought a helicopter from pretty Anna, the
purchase price being paid by Thea, Henry’s grandmother. Then, Henry and Thea
almost cut each other’s head off in a disagreement. The latter brought action to
recover the helicopter, she having paid it in the first place. There is no obligation on
Henry’s part to transfer the ownership to his grandmother.
True 16. If a party allege some defect in a contract as a reason for invalidating
it, it must be proved by him by convincing evidence.
True 17. The effect of every infraction is to create a new duty, that is, to make
recompense to the one who has been injured.
False 18. Negotiorum gestio arises when the property or business is not
neglected or abandoned. (does not arise)
False 19. A compromise agreement is immediately executory and appealable,
except for vices of consent or forgery. (not appealable)
 True 20. If damage result from a person’s exercising his own legal rights, it is
damnum absque injuria or damage without injury.

II. MULTIPLE CHOICE (15 items)

1. What do you call quasi-contracts with names such as Negotiorum gestio and
Solutio indebiti?

a) Named Quasi-Contracts
b) Formal Quasi-Contracts
c) Nominate Quasi-Contracts
d) Nominal Quasi-Contracts

2. This exists when a person voluntarily takes care of a business or properties that
are not abandoned without the express authorization of the owner.

a) Negotiorum gestio
b) Unauthorized contract
c) Authorized contract
d) Wingardium leviosa

3. The following are prerequisites of quasi-delicts, except?

a) Damaged caused to the defendant

b) Act or omission
c) Fault or negligence
d) Direct relation between the damage and the act or omission

4. Person in whose favor the obligation is constituted.

a) Oblonger
b) Obligor
c) Obligee
d) Obligist

5. Omission of the diligence which is required by the circumstances of person,

place and time.

a) Liability
b) Crime
c) Injury
d) Negligence

6. It gives a right of action to compel or demand a performance.

a) Natural Obligation
b) Moral Obligation
c) Personal Obligation
d) Civil Obligation
7. As a rule in recompensing with the injured party, which of the following restores
the damage as a whole?

a) Respiration
b) Reparation
c) Restitution
d) Indemnification

8. The conduct required to be observed by the debtor.

a) Object
b) Good faith
c) Compliance
d) Diligence

9. Arises only when the moment a right has been transgressed occurs.

a) Cause of action
b) Right of action
c) Wrong of action
d) Lights, camera, action

10. Wrongful violation of a legal right is not sufficient to entitle a person to sue
another in court of justice. As a rule, there must be, in addition, loss or damages
caused.

a) Binding force
b) Proof of loss for injury
c) Liability for damages of a person for exercising his legal rights
d) Preservation of interest of promisee

11. Damages awarded for mental and physical anguish.

a) Exemplary
b) Nominal
c) Temperate
d) Moral

12. The right of the creditor that is enforceable against a definite debtor is
________?

a) Personal right
b) Moral right
c) Natural right
d) Real right
 13. A contract is valid if it is not contrary to the following, except?

a) Public Policy
b) Good Ethics
c) Public Order
d) Law

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

a) Obligation
b) Agreement
c) Contract
d) Covenant

15. What does good faith mean?

a) Fair business
b) Fair agreement
c) Fair job
d) Fair dealing

III. IDENTIFICATION (15 items)

___________ 1. A juridical relation resulting from certain lawful, voluntary and

unilateral acts. (quasi-contract)
___________ 2. A juridical relation which is created when something is received when
there is no right to demand it and it was unduly delivered through mistake. (solution
indebiti)
___________ 3. An act or omission by a person (tort feasor) which causes damage to
another in his person, property, or rights. (quasi-delict)
___________ 4. A tie of law or a juridical bond by virtue of which one is bound in favor
of another to render something- and this may consist in giving a thing, doing a
certain act or not doing a certain act. (Obligation)
___________ 5. The efficient cause which binds or connects the parties. (juridical tie)
___________ 6. Power which a person has under the law, to demand from another
prestation. (right)
___________ 7. Legal wrong to be redressed. (injury)
___________ 8. A personal obligation to do or to render service. (positive personal
obligation)
___________ 9. Source of obligation which arises from civil liability which is the
consequence of a criminal offense. (crime, delict, act or omission punished by law)
___________ 10. Classification of sources under the private acts in the case of
contracts and quasi-contracts. (licit acts)
___________ 11. Refer to all other laws not contained in the Civil Code. (special laws)
___________ 12. Scope of Civil liability which shall include not only those caused in
the injured party, but also those suffered by his family or by a third person by
reason of the crime. These involves other consequential damages. (indemnification)
___________ 13. Sum of money recoverable by reason of damage done. (damages)
___________ 14. Type of obligation not based on positive law but on equity and
natural law. (natural obligation)
___________ 15. Person who is entitled to demand the fulfillment of an obligation.
(oblige, creditor, passive subject)