Contract Law Quiz - Payment Methods and Obligations

Payment made to a third party is valid if the creditor ratifies it, the debtor was led to believe the third party had authority, or the third party acquired the creditor's rights. However, it is NOT valid if the third party is just subrogated (meaning they took over the creditor's rights) and the debtor didn't know that.

In solidary obligations, if one debtor fails to fulfill their part, the creditors can demand the whole amount from any of the debtors. If one debtor pays the whole amount, they can recover from the other debtors their proportionate share.

A minor agent cannot bind the principal to a contract unless the principal ratifies the action. In this case, P is not bound by the contract since A exceeded his authority as a minor.

A debtor is still obligated to pay even if the subject of the obligation (in this case, the house) is destroyed through no fault of their own. This is especially true when the obligation has a definite period and benefits both the debtor and creditor.

If a debtor fails to fulfill their obligation, the creditor can demand the entire amount from any of the debtors in a solidary obligation. The creditor doesn't need to collect a proportionate share from each debtor separately.

If the debtor pays the entire amount in a solidary obligation, they can then recover from the other debtors their proportionate share of the debt. This includes any damages awarded by the court.

The principal is liable for acts of their agent who acted within their authority, even if the agent is a minor. If the agent exceeded their authority, the principal is not bound.

In solidary obligations, the guilty debtor cannot escape the responsibility of paying damages even though they are the primary cause of the failure to fulfill the obligation.

When a debtor delivers a thing to the creditor as equivalent payment, extinguishing the existing debt.

An obligation where various prestations are due, but only the performance of all of them extinguishes the obligation.

A statement or promise by the seller regarding the quality or condition of a thing, inducing the buyer to purchase it.

Contracts entered into where one party was incapable of giving consent due to being under a hypnotic spell or in a state of drunkenness.

Contracts that are null and void from the beginning, and have no legal effect.

When multiple debtors are liable for the same debt, any creditor can collect the full amount from any one debtor.

A change in a previous obligation, altering its elements (e.g., the object, the debtor, or the creditor).

Transferring ownership of a thing to the creditor as full or partial payment for a debt.

An obligation with several options for performance, but only one option needs to be fulfilled.

An obligation that is immediately due and payable, without any conditions or specified dates.

An obligation that is not subject to any condition and is immediately demandable.

An obligation where the performance of one prestation out of several due is sufficient to extinguish the obligation.

An obligation where several prestations are due, but the performance of only one is enough to fulfill the obligation.

If the debtor is at fault for the loss of an object in an alternative obligation, and only one object remains, the obligation becomes simple, requiring the debtor to fulfill that remaining option.

If the loss of an object in an alternative obligation is due to the debtor's fault, and two or more objects remain, the obligation still retains its alternative character.

If the loss of all objects in an alternative obligation is due to the debtor's fault, the obligation is extinguished.

This principle emphasizes that parties to a contract are bound not only to their express agreements but also to all the consequences implied by good faith, custom, and law.

A contract is considered perfected when there is a meeting of the minds between the parties, meaning both parties agree to the terms of the agreement.

When the offeror dies before acceptance, the offer becomes ineffective and cannot be accepted. The contract is not perfected.

The stages of a contract are:

1. Conception: Negotiations begin.
2. Perfection: Agreement reached.
3. Consummation: Contract is fulfilled.

Elements that are not essential for the validity of the contract, but are added by the parties to modify or add to the terms. These are often specific details, special conditions, or particular requirements.

Contracts made by individuals who were intoxicated or hypnotized at the time are considered voidable. This means that the contract can be set aside by the party who was under the influence.

In contracts of pure beneficence, the motivation for the contract is solely the giver's generosity, without expecting any return or reward.

A contract is in the stage of conception when the parties are still negotiating and exploring the terms of a potential agreement.

Extinction of an obligation where the debtor and creditor become the same person. This merges their rights and obligations, effectively ending the debt.

A special form of payment where the debtor delivers a different thing to the creditor, who accepts it as full payment of the debt. This must be agreed upon by both parties.

Occurs when a debtor is in financial trouble (partial or complete insolvency) and gives up all of their property, except what's legally protected, to their creditors. These creditors then divide the proceeds amongst themselves to pay off their individual claims.

Occurs when two parties owe each other money. They can cancel out their respective debts, to the extent of the smaller amount. This mutually extinguishes the obligations.

When a debtor fails to pay on time, and the delay causes loss or damage to the creditor. The debtor is then responsible for the loss caused by their delay.

An act of forgiveness, where the creditor voluntarily chooses to release the debtor from their obligation. This can be done with or without conditions.

This occurs when the debtor promises to deliver the same thing to two or more different people who don't share the same interest. If the thing is lost, the obligation is extinguished for all.

When a new obligation replaces an existing one, the original obligation is revived if the new one is void.

In novation, if the original obligation had a condition, the new obligation doesn't automatically inherit it.

A third party paying a debt without the debtor's consent is considered a donation if they don't intend to be reimbursed.

If a debtor promises to pay "whenever his means permit him to do so," the obligation has a period, but not necessarily a specific date.

A payment made to an incapacitated creditor is only valid if it benefits them. Otherwise, it might not be enforceable.

If multiple debts are due, you can choose which debt to pay first, but debts must be of the same kind and from the same debtor.

Merger of the guarantor with the debtor only extinguishes the secondary contract, like the contract of guaranty. The primary obligation remains.

If a third person pays a debt without the debtor's consent, the payment may be valid as long as the third person intended to be reimbursed.