Contract Law Quiz

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Questions and Answers

What is a characteristic of a contract of adhesion?

It is a contract where almost all of its provisions are drafted by one party. (correct)

It is a contract where the terms are negotiated by both parties.

It is a contract where the parties have a pre-existing relationship.

It is a contract where both parties have equal bargaining power.

When does a contract of adhesion become void?

When it is signed by both parties.

When the dominant party takes advantage of the weakness of the other party. (correct)

When the contract is written in a foreign language.

When it is not notarized.

What is the purpose of an innominate contract?

To establish a business partnership.

To avoid litigations or put an end to one already commenced. (correct)

To create a contract of adhesion.

To establish a contract with a third party.

What is the principle of relativity of contracts?

The principle that contracts are only valid between the parties. Signup and view all the answers

What is tort interference?

The act of inducing another to violate their contract. Signup and view all the answers

What are the elements of tort interference?

Inducement, breach, and damages. Signup and view all the answers

What are the stages in the life of a contract?

Formation, execution, and termination. Signup and view all the answers

What is the rule in innominate contracts?

The contract must bind both contracting parties. Signup and view all the answers

What type of contract gives rise to an obligation for only one of the parties?

Unilateral Signup and view all the answers

What type of contract requires not only the consent of the parties for their perfection but also the delivery of the object by one party to the other?

Real Signup and view all the answers

What is the primary objective of a preparatory contract?

To establish a condition in law Signup and view all the answers

What is the characteristic of a commutative contract?

Each party acquires an equivalent of his prestation Signup and view all the answers

What is the primary distinction between a unilateral and a bilateral contract?

The type of obligation created Signup and view all the answers

What is the characteristic of an onerous contract?

Each party aspires to procure for himself a benefit Signup and view all the answers

What is the primary objective of a principal contract?

To exist independently from other contracts Signup and view all the answers

What is the characteristic of a gratuitous contract?

One party purposes to give to the other a benefit without any equivalent Signup and view all the answers

At what stage of a contract do the parties agree upon the essential elements?

Perfection Signup and view all the answers

What type of contract requires not only the consent of the parties but also the delivery of the object by one party to the other?

Real Contracts Signup and view all the answers

What is the term for a contract where one party delivers a non-consumable item to another party for a certain time, with the obligation to return it?

Commodatum Signup and view all the answers

What is the principle that prohibits C from increasing the rate of interest without D's consent?

Pacta Sunt Servanda Signup and view all the answers

When does a deposité contract come into being?

From the moment of delivery Signup and view all the answers

What type of contracts take effect only to the parties, their assigns, and heirs except where the rights and obligations arising therefrom?

All Contracts Signup and view all the answers

Study Notes

Types of Contracts

Those with individuality, regulated by special provisions of law, and those without individuality, not regulated by special provisions of law.
Contracts of adhesion, where almost all provisions are drafted by one party, but only become void when the dominant party takes advantage of the other party's weakness.

Contract Formation

The contracting parties may establish stipulations, clauses, terms, and conditions as they deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.
The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them.

Effects of Contracts

Contracts take effect only between the parties, their assigns, and heirs, except in cases where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law.
The principle of relativity of contracts has exceptions.

Third Party Interference

Any third person who induces another to violate their contract shall be liable for damages to the other contracting party.
The elements of tort interference are specified.

Stages of a Contract

The stages of a contract are:
- Pre-contractual stage, from the time prospective contracting parties manifest their interest in the contract to the moment of agreement.
- Perfection, when the parties agree upon the essential elements of the contract.
- Execution, when the parties fulfill or perform the terms agreed upon in the contract, culminating in its extinguishment.

Classification of Contracts

Those perfected by the mere agreement of the parties.
Those requiring not only the consent of the parties for their perfection, but also the delivery of the object by one party to the other.
Those which give rise to an obligation for only one of the parties (unilateral contracts).
Those which give rise to reciprocal obligations for both parties (bilateral contracts).
Those in which each of the parties aspires to procure for himself a benefit through the giving of an equivalent or compensation (onerous contracts).
Those in which one of the parties purposes to give to the other a benefit without any equivalent or compensation (gratuitous contracts).

Other Contractual Concepts

Deposit, where one of the parties delivers to another, either something not consumable, so that the latter may use it for a certain time and return it.
Pledge, where the creditor is given the right to retain the debtor's movable property in their possession, or in that of a third person, until the debt is paid.
Contracts that require a specific form to be valid or enforceable, and those that must be proved in a certain way.