Contract Law Essentials Quiz

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Questions and Answers

What is the essential requisite of a contract related to agreement among parties?

Object

Consent (correct)

Authority

Cause

Which term indicates joint liability among parties?

Pro rata

Individually

Solidarily

Collectively (correct)

What is a negative personal obligation?

An obligation to pay damages.

An obligation to provide a service.

An obligation not to do something. (correct)

An obligation to do a specific action.

What characterizes a divisible obligation?

It can be fulfilled partially. Signup and view all the answers

Which of the following is a requisite of an obligation?

A passive subject. Signup and view all the answers

Which description correctly defines a penal clause?

It serves as a penalty for breach of obligations. Signup and view all the answers

To whom should payment typically be made?

A person authorized to receive it. Signup and view all the answers

What type of obligation arises from a quasi-delict?

An obligation to pay damages. Signup and view all the answers

When the object of an obligation is a specific thing and it is lost, what cannot happen?

It cannot be substituted with another thing of the same kind. Signup and view all the answers

What is a characteristic of an indivisible obligation?

It is not capable of partial fulfillment. Signup and view all the answers

The obligation to return something delivered by mistake falls under which category?

Quasi-contract. Signup and view all the answers

When do contracts generally take effect regarding the parties involved?

Between the parties and their heirs. Signup and view all the answers

Which obligation arises from a contract?

Obligation to repay a loan. Signup and view all the answers

Which of the following statements about partial payments is true?

They do not extinguish the obligation. Signup and view all the answers

In the context of obligations, what defines the creditor?

A person entitled to demand fulfillment of the obligation. Signup and view all the answers

What happens to an obligation if the object is generic and lost?

It can be substituted if it's of the same kind. Signup and view all the answers

What is required of a debtor who is obliged to give a determinate thing?

To take care of the item with the diligence of a good father of a family before delivery Signup and view all the answers

What is the primary cause that binds parties in an obligation?

A juridical or legal tie Signup and view all the answers

In the case of a stolen item, what obligation does the debtor have?

To return the stolen item to its rightful owner Signup and view all the answers

Which of the following is NOT one of the remedies available to a creditor if the debtor fails to comply with an obligation to deliver a determinate thing?

Demand a replacement item of lesser quality Signup and view all the answers

What characterizes a pure obligation?

It is immediately demandable and not subject to any condition Signup and view all the answers

What type of obligation is one whose consequences depend on a condition's fulfillment?

Conditional obligation Signup and view all the answers

When must specific performance of an obligation be demanded with respect to generic items?

When the generic thing is lost and cannot be delivered Signup and view all the answers

How can ownership of property be acquired?

By delivery of the property to the new owner Signup and view all the answers

What happens if a third party pays a debtor's debt without the debtor's knowledge?

The third party is entitled to reimbursement and subrogation. Signup and view all the answers

Which scenario does NOT constitute consent in a contract?

Both parties fail to understand the terms. Signup and view all the answers

In what situation can a mistake vitiate consent?

When it refers to the object of the contract. Signup and view all the answers

What is the impact of fraud on a contract?

It may render the contract voidable. Signup and view all the answers

What is required for acceptance of an offer?

It must be absolute and unqualified. Signup and view all the answers

What is absolute simulation in a contract?

When the contract does not genuinely exist. Signup and view all the answers

Which of the following would NOT be considered a condition of the contract that can cause a mistake?

The location of the transaction. Signup and view all the answers

What characterizes simulation of a contract?

It feigns an appearance of a contract that does not exist. Signup and view all the answers

Which individuals cannot give consent for a contract?

Insane or demented persons Signup and view all the answers

In what circumstance is a contract participated in by an insane person considered valid?

During a lucid interval Signup and view all the answers

What characterizes intimidation in a contract?

One party fears imminent and grave evil Signup and view all the answers

Which of the following is a requirement for the object of a contract?

It must be legally permissible Signup and view all the answers

What results when a contract fails to express the real agreement of the parties?

Reformation Signup and view all the answers

What must parties do when a contract is rescinded?

Return the object of the contract and its fruits Signup and view all the answers

What defines undue influence in a contract?

Taking advantage of one's power over another Signup and view all the answers

Contracts entered into during a state of drunkenness are considered:

Void Signup and view all the answers

Which of the following accurately describes voidable contracts?

They possess all the essential requirements of a valid contract but consent is compromised. Signup and view all the answers

What characterizes rescissible contracts?

They can be legally effective but are subject to rescission. Signup and view all the answers

Which statement is true about unenforceable contracts?

They cannot be enforced in court due to legal defects. Signup and view all the answers

Which of the following would NOT be classified as a rescissible contract?

A contract that has essential elements but both parties are incapable of giving consent. Signup and view all the answers

What happens to void contracts?

They produce no legal effects whatsoever. Signup and view all the answers

Which of the following is a requirement for contracts involving real property?

They need to be public instruments. Signup and view all the answers

Which situation exemplifies a valid voidable contract?

Contract terms were not fully disclosed to one party. Signup and view all the answers

Which type of contract cannot be enforced in court due to specific legal limitations?

Void contracts. Signup and view all the answers

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Study Notes

Obligations and Contracts

Obligations are juridical necessities to give, do, or not do.
Essential requisites of an obligation include:
- A passive subject (debtor/obligor)
- An active subject (creditor/obligee)
- An object/prestation (subject matter)
- A juridical/legal tie (cause)
Debtor is the person obligated to fulfill the obligation.
Creditor is the person entitled to demand fulfillment.
Object/prestation can involve giving, doing, or not doing.
Real obligations involve the delivery of a thing.
Personal obligations involve doing or not doing.
Positive personal obligations involve doing or rendering a service.
Negative personal obligations involve not doing something.
Obligations may arise from law, contract, quasi-contract, or quasi-delict.
Obligations to pay taxes arise from law.
Obligations to repay a loan arise from a contract.
Obligations to return money due to mistakes arise from quasi-contract.
Obligations to return something mistakenly delivered are solution indebiti.

Personal Obligations

Obligations to render service, or to do something.
Obligations not to do something.
Obligations related to specific items.

Types of Obligations

Specific/determinate obligations: The specific item cannot be substituted, even if of similar kind.
Generic obligations: Substitute with another of same kind is possible if lost. e.g Loss of a generic item—loss does not extinguish an obligation

Extinguishing Obligations

The loss of a specific object due to unforeseen circumstances.
The loss of the item due to fault of the debtor will not extinguish the obligation.
The debtor has the duty of maintaining the item's condition until delivery.
Ownership of the object usually transfers after delivery.

Delay in Obligations

Delay occurs when an obligation is not fulfilled when due—and a demand for fulfillment was made.
Delay without demand needed in certain instances.
Remedies available for creditor when the debtor fails to deliver a specific item.
A third party can fulfill the obligation at the expense of the debtor if they fail to do so.

Conditions in Obligations

Pure obligations are immediately demandable and carry no conditions.
Conditional obligations have consequences dependent on fulfillment.
Suspensive conditions: fulfillment creates an obligation.
Resolutory conditions: fulfillment ends the obligation.
Impossible conditions make the obligation void.

Fortuitous Events and Force Majeure

Fortuitous events are unforeseen events that cannot be controlled.
Force majeure refers to acts of human intervention that cannot be prevented.

Payment and Obligations

Payment should be made to the creditor, successor or authorized person.
In cases of third-party payments.
A third-party payment with or without debtor knowledge creates different recovery options.

Other Contractual Considerations

Contracts are agreements that create obligations.
Essential elements of contract are consent, object, and cause
Contracts often involve the transfer of ownership.
Different types of obligations exist.
Contracts become void or nonexistent in certain circumstances.
Remedies regarding contracts.
Penalties/clauses may be imposed if certain conditions are not met.
A contract is rescindible if it results in injustice to one party.
Some contracts must be in writing to be valid.

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Description

Test your knowledge on the fundamental concepts of contract law, including obligations, liabilities, and agreements among parties. This quiz covers key terms and principles that define various types of obligations and contracts. Perfect for law students or anyone interested in understanding contract principles.