OBLIGATIONS AND CONTRACTS 6. Multiple Choice Questions in Obligations and Contracts 1. It is the juridical relation resulting from lawful, voluntary, and unilateral acts by virtue of which the parties become bound to each other to the end that no one shall be unjustly enriched or benefited at the expense of another. a. b. c. d. 2. Agreement Vinculum juris Contracts Quasi-Contracts 3. a. b. c. 7. This takes place when something is received when there is no right to demand it, and it was unduly delivered thru mistake. a. b. c. d. a. b. Solutio Indebiti Negotiorum Gestio Vinculum juris Prestation c. d. 8. Negligence Mora solvendi Mora accipiendi Compensatio morae Demand is not necessary to incur delay when: a. b. c. d. 5. If the account is personal The debtor's acts are fraudulent The debtor has performed an act subsequent to the contract, giving advantage to other persons d. Creditor must have the right of return against debtor In Accion Pauliana Rescission, which involves the right of the creditor to attack or impugn by means of rescissory action any act of the debtor which is in fraud and to the prejudice of his rights as creditor provided: This happened when the creditor make a demand and the obligor fails to deliver the thing. a. b. c. d. 4. In Accion subrogatoria the creditor may exercise all of the rights and bring all of the actions which the debtor may have against third persons if: Creditor refuses the performance without just cause. The debtor is guilty of nonperformance. Time is the controlling motive If the obligation bears interest In what instance may we consider that there is no delay? a. b. c. d. In civil obligations In positive obligation In obligation arising from crime In natural obligation It causes the extinguishment or loss of rights already acquired upon the fulfillment of the condition, that is, the happening of the event which constitutes the condition. In other words, the fulfillment of which will extinguish an obligation (or right) already existing. a. b. c. d. 9. The debt is due and demandable There is a failure of the debtor to collect his own debt from 3rd persons either through malice or negligence The debtor's assets are insufficient The debtor has performed an act subsequent to the contract, giving advantage to other persons Condition subsequent Suspensive facultative condition positive condition When the thing deteriorates with the debtor’s fault, the creditor may choose one of the following: a. b. c. Mutual restitution Rescission (cancellation) of the obligation with indemnity for damages Suffer the deterioration of the thing d. Institute an action for negligence. 10. It is a future and certain event upon the arrival of which the obligation (or right) subject to it either arises or is terminated. a. b. c. d. Fortuitous events Condition Period Date and time II. 1. When the debtor binds himself to pay when his ANSWER: D 4. When the characters of the creditor and the debtor are merged in one and the same person, there is extinguishment of the obligation by: a. Compensation b. Merger of Rights c. Novation d. Remission means permit him to do so, the obligation is: ANSWER: B a. Conditional b. Pure c. Simple 5. Through insidious words or machinations, A was d. With a Period able to induce B to enter into a contract which without them B would not have agreed to it. There ANSWER: D is: a. Undue Influence 2. Contracts which cannot be sued upon unless b. Fraud ratified, thus it is as if they have no effect yet are: c. Mistake d. Misrepresentation a. Voidable b. Rescissible ANSWER: B c. Void d. Unenforceable 6. "A sells to B his lot and house in the city if A ANSWER: D decides to transfer and live in the countryside" is an example of: 3. If the obligation of the debtor is "I will pay a. Mixed Condition you my debt after I have arrived from abroad," this b. Potestative Condition is c. Casual Condition d. Resolutory Condition a. Unenforceable b. With a Period c. Void d. Conditional ANSWER: B 7. It is a mode of extinguishing an obligation when two persons in their own right are creditors of each ANSWER: C other. III. a. Confusion 1. When the debtor binds himself to pay when his b. Reformation means permit him to do so, the obligation is: c. Compensation d. Novation a. Conditional b. Pure ANSWER: C c. Simple d. With a Period 8. A contract is in the stage of conception when: ANSWER: D a. There is meeting of the minds. b. Negotiations are in progress. 2. Contracts which cannot be sued upon unless c. The parties come to an agreement. ratified, thus it is as if they have no effect yet are: d. The contract is perfected. a. Voidable ANSWER: B b. Rescissible c. Void d. Unenforceable 9. If the obligor binds himself to perform his obligation as soon as "he shall have obtained a ANSWER: D loan" from a certain bank, this obligation is: a. With a Term b. Conditional c. Suspensive d. Resolutory 3. If the obligation of the debtor is "I will pay you my debt after I have arrived from abroad," this is a. Unenforceable b. With a Period c. Void ANSWER: B d. Conditional ANSWER: D 10. Contracts entered into in a state of drunkenness or during a hypnotic spell are: 4. When the characters of the creditor and the a. Void debtor are merged in one and the same person, b. Valid there is extinguishment of the obligation by: c. Voidable d. Legal a. Compensation b. Merger of Rights c. Novation 8. A contract is in the stage of conception when: d. Remission a. There is meeting of the minds. ANSWER: B b. Negotiations are in progress. c. The parties come to an agreement. d. The contract is perfected. 5. Through insidious words or machinations, A was able to induce B to enter into a contract ANSWER: B which without them B would not have agreed to it. There is: 9. If the obligor binds himself to perform his obligation as soon as "he shall have obtained a a. Undue Influence loan" from a certain bank, this obligation is: b. Fraud c. Mistake a. With a Term d. Misrepresentation b. Conditional c. Suspensive ANSWER: B d. Resolutory ANSWER: B 6. "A sells to B his lot and house in the city if A decides to transfer and live in the countryside" is an example of: 10. Contracts entered into in a state drunkenness or during a hypnotic spell are: a. Mixed Condition b. Potestative Condition a. Void c. Casual Condition b. Valid d. Resolutory Condition c. Voidable d. Legal ANSWER: B ANSWER: C 7. It is a mode of extinguishing an obligation 11. Delay in the giving or delivering of a thing when two persons in their own right are creditors of each other. a. Mora solvendi ex re b. Mora solvendi ex persona a. Confusion c. Mora accipiende ex re b. Reformation d. Mora accipiende ex persona c. Compensation d. Novation ANSWER: C ANSWER: A 12. Which of the following statements is false? of c. When the party seeking resolution can perform a. Obligations to give definite things and those only as to part and as to remainder that are not susceptible of partial performance d. When the seller cannot return the installments shall be deemed divisible. paid to him by the buyer b. Execution of a certain number of days of work shall be divisible. ANSWER: B c. Accomplishment of work by metrical units are divisible d. An obligation to pay a certain amount in ten 16. A defective contract where damage or lesion annual installments is divisible. is essential ANSWER: A a. Rescissible 13. This contract is without effect unless ratified: b. Voidable c. Unenforceable a. Marriage between first degree cousins d. Void b. Contract of sale between two insane persons ANSWER: A c. Contract of sale between husband and wife d. Donation between husband and wife 17. An instrument may be reformed d ANSWER: B a. Simple donations inter vivos wherein no condition is imposed 14. Which of the following contracts is not void ab b. Wills initio? c. When the instrument does not express the true intention of the parties due to mistake a. Those whose object is outside the commerce d. When the real agreement is void of men b. That whose object did not exist at the time of ANSWER: C transaction c. That which contemplates an impossible service d. That which is undertaken in fraud of creditors 18. Three of the following contracts are void. Which one is not? ANSWER: D a. Oral contract of partnership of three partners and capital contribution is more than P3,000 in 15. Rescission of contract can take place in this cash case b. Written contract contemplating impossible services a. When the thing which is the object of the c. Oral contract of partnership where real estate contract is legally in the possession of a third is contributed as capital person who acted in bad faith d. Agent's authority to sell land is given orally. b. When he who demands rescission can return whatever he may be obliged to restore ANSWER: A 19. When a third person assumes the payment of the obligation even without the knowledge and consent of the debtor but with the consent of the creditor a. There is novation b. There is delegation if debtor is released c. There is subrogation d. There is expromission if debtor is released ANSWER: D 20. Which of the following is not an element of legal compensation? a. Debts to be compensated are due and demandable b. There is controversy or adverse claim over any debts to be compensated c. There are two or more debts of the same kind d. There are two or more persons who are creditor or debtors of each other. ANSWER: B Question: Why is it important that obligation in contractsbe faithfully fulfiiled?? Answer: Laws are enacted to have order (or require the performance of a particular action to achieve the same) Since the terms and conditions of a contract are considered the governing laws between parties, it is necessary to faithfully fulfill one's obligation, that is, to avoid the occurrence of dispute. Hence, why do we have to fulfill our obligations, that is to achieving order between the parties to the contract. Question: How do you apply the laws on obligations and contracts to everyday activities and business dealings? Answer: We apply laws on obligations and contracts unconsciously to our daily activities. One will not notice that in performing a simple common task you have applied several principles on obligations and contracts. Like, for example, buying a piece of pandesal, the buyer will offer to buy and the seller will accept. At this point, once the seller and buyer agrees to the object and price, and their minds have met; each of them will not just rescind or refuse to comply. Even without knowledge of law, one will not just back out from the perfected sale. Then, after the perfection of the contract of sell; unknowingly, they will go on to consummate the same. The buyer will hand the money and the seller, in return, will hand over the pandesal. A clear example of reciprocal obligations, isn't? If the money given is more than the price of the pandesal, the seller will give the change. That is because he knows no one should be enriched at the expense of another; hence, he has the obligation to return what is not due him. Likewise, if what was delivered to the buyer is more than what he paid for, he will return the same under the same principle, creating an implied obligation to return. In a simple, but very common, transaction, the parties are not aware that they are applying the basic principles of law on obligations and contracts. They might not be well versed, or even, have not had any formal education, yet they apply these simple principles of law unconsciously. Thus, If you ask: how we apply laws on obligations and contracts on our daily activities, we apply it unknowingly, but instinctively, depending on one's value.
