AK-Oblicon - Obligation and Contracts PDF

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Introduction to CONTRACTS The stages of a contract according to the order of their occurrence are: c. conception, birth and consummation 2. Elements that accompany certain contracts unless set aside or surpressed by the parties are known as: a. natural elements 3. A contract that does not have any s...

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Introduction to CONTRACTS 1. The stages of a contract according to the order of their occurrence are: c. conception, birth and consummation 2. Elements that accompany certain contracts unless set aside or surpressed by the parties are known as: a. natural elements 3. A contract that does not have any special name under the law is known as: b. innominate contract 4. A contract where the parties contemplate a real fulfillment, hence, equivalent values are given is known as: c. onerous contract 5. The contract must bind both contracting parties, its validity or compliance cannot be left to the will of one of them. This is the principle of: a. mutuality of contract 6. Contracts which are perfected not merely by consent but by the delivery, actual or constructive, of the object of the obligation. b. real contracts 7. Statement 1: Persons who come into possession of the object of a contract over which there is a real right, are bound thereby only if they are parties to the contract. Statement 2: The creditor is given the right to impugn the contracts of his debtor to defraud him. b. Only statement 2 is correct. 8. Statement 1: A pledge is perfected by mere consent. Statement 2: A sale is perfected by the delivery of the thing subject matter of the contract. d. Both statements are incorrect. 9. Statement 1: A stranger can be sued for damages for his unwarranted interference with the contract. Statement 2: As a general rule, a third person has no rights and obligations under a contract to which he is a stranger. c. Both statements are correct. 10. Statement 1: As a general rule, a party’s rights and obligations derived from a contract are intransmissible to the successors. Statement 2: Only the parties, their assigns, and heirs can have rights and obligations under the contract. b. Only statement 2 is correct.

ESSENTIAL REQUISITE FOR CONTRACTS 1. One of the following is not incapable of giving his consent. c. deaf-mutes who know how to read 2. Contracts entered into in a state of drunkenness or during hypnotic spells are: b. voidable 3. 4. It exists when a person takes improper advantage of his power over the will of another depriving the latter of a reasonable freedom of choice. d. undue influence 5. It involves the employment of serious or irresistible force to obtain consent. c. violence 6. A contract whose cause is the promise of a thing or service by the other party is: d. a remuneratory contract 7. An absolutely simulated contract is: a. void 8. The following contracts are void or inexistent, except: d. those were one of the parties is guilty of fraud in performing his obligation 9. S convinced B to buy a gold-plated bar which S told B was made of pure gold. B bought the thing believing that it was really made of pure gold. The contract between S and B is: b. voidable 10. The cause of a contract differs from the motive of each party to the contract in that motive b. although illegal does not affect the validity of the contract.

FORMS AND INTERPRETATION (1) 1. Statement 1:The cession, repudiation or renunciation of hereditary rights is invalid if not in in a public instrument. Statement 2: The power to administer property is valid even if not in public document. a. Only statement 1 is correct. 2. A contract which is required by law for its efficacy to be in a certain specified form. d. solemn contract 3. Sean sold his 500 square meter lot to Brent. However, the deed of sale signed by the parties showed a total area of P5,000 square meters due to the secretary’s mistake. Later, sean discovered the mistake. What remedy is available to either party? c. reformation 4. Statement 1: A simple donation inter vivos with no condition imposed may be reformed. Statement 2: A donation which is onerous in character may be reformed. d. Both statements are incorrect. 5. Statement 1: A will cannot be reformed anymore after the death of the testator. Statement 2: A party who brings an action to enforce the contract may not ask thereafter ask for its reformation. c. Both statements are correct. 6. Statement 1: Reformation is not available if the contract is void. 2: Reformation is a remedy availed of to express the real intent of the parties to a contract whether oral or written. a. Only statement 1 is correct. 7. It is the determination of the meaning of the terms or words stated in the written contract to determine the intention of the parties c. interpretation of a contract 8. Statement 1: A written contract should be, in case of doubt, be interpreted against the party who just adhered to it. 2: When the words and clauses of a written contract are in conflict with the manifest intention of the parties, the former should prevail over the latter. c. Both statements are correct. 9. Statement 1: Where in a contract a conflict exist between a general and special provision relating to the same subject matter, the latter should prevail over the former. Statement 2: If in a contract the doubt refers to the principal object of the contract and it cannot be resolved, leaving the intention of the parties unknown, the contract shall be null and void. c. Both statements are correct.

10. Statement 1: If the doubts refer to incidental circumstances of gratuitous contract, such interpretation should be made which would result in the greatest transmission of rights and interests.

2: If the contract in question is onerous, the doubts should be settled in favor of the

least transmission of interests . d. Both statements are incorrect....