Contract Law Quiz - Payment Methods and Obligations

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Questions and Answers

Which characteristic does NOT belong to payment by cession?

One debtor, one creditor (correct)

Abandonment of all the debtor’s properties except those exempt from execution

Complete or partial insolvency

More than one debt

Which of the following is NOT a special form of payment?

Payment by cession

Dation in payment

Accrual (correct)

Tender of payment and consignation

Under which circumstance does C subrogate in the rights of B when C pays A’s debt?

When the payment is made after the due date

When C’s payment is with A’s knowledge (correct)

C never subrogates in any case

When C’s payment is without A’s knowledge

What is the term for the substitution or change of an obligation that extinguishes or modifies the first?

Real novation Signup and view all the answers

What is the method by which meeting the characteristics of both debtor and creditor in one obligation extinguishes that obligation?

Merger or confusion Signup and view all the answers

In which situation will the loss of a determinate thing extinguish the obligation?

When the obligation requires assumption of risk Signup and view all the answers

Can A rightfully oppose B's claim for compensation on September 10, 2015?

No, B can claim compensation as he benefits from the term. Signup and view all the answers

Which statement is true regarding the effects of compensatory payments?

Compensation requires mutual consent of both parties. Signup and view all the answers

Which characteristic of dacion en pago is also a characteristic of a contract of sale?

Ownership of the object transferred to the other party Signup and view all the answers

What is the term for an obligation where various prestations must all be performed to extinguish the obligation?

Conjunctive obligation Signup and view all the answers

Which of the following defines a seller's promise or affirmation meant to induce a buyer's purchase?

Warranty Signup and view all the answers

Which of the following contracts is considered rescissible?

Contracts made in a state of inebriation Signup and view all the answers

Which type of contract is deemed void?

Contract where pressure was used to obtain agreement Signup and view all the answers

What is not true about novation regarding the modification of an obligation?

Making oral agreements binding Signup and view all the answers

In the context of joint debtors, how much can creditor V collect from debtor B if the total amount due is P 20,000?

P 20,000 Signup and view all the answers

Which of the following refers to the conveyance of ownership as an accepted equivalent of performance?

Dacion en pago Signup and view all the answers

What is the principle that states parties are bound to fulfill not only what is expressly stipulated but also the consequences in keeping with good faith, usage, and law?

Obligatory force of contract and compliance in good faith Signup and view all the answers

Which of the following instances does NOT render an offer ineffective before acceptance is conveyed?

Insolvency of either party Signup and view all the answers

When is a contract perfected in the scenario where S offered to sell a car and B accepted it, but S died before acceptance was communicated?

The contract was not perfected because S's offer became ineffective Signup and view all the answers

In which stage is a contract when the parties are negotiating but have not yet come to an agreement?

Conception Signup and view all the answers

Which type of contracts are voidable due to the condition of the parties at the time of entering into the agreement?

Contracts entered into under drunkenness or hypnosis Signup and view all the answers

Which element of a contract exists only when it is expressly provided by the parties?

Accidental element Signup and view all the answers

What is the stage of a contract called when there is a meeting of the minds between the contracting parties?

Conception Signup and view all the answers

In contracts of pure beneficence, the cause or consideration is generally characterized by which of the following?

Merely liberality of the benefactor Signup and view all the answers

What action can A take if B refuses to accept A's payment made on September 20, 2015?

A can deposit the payment in court. Signup and view all the answers

In novation, which statement is incorrect regarding obligations?

In expromission, the creditor can still act against the original debtor if the new debtor is insolvent. Signup and view all the answers

Which of the following is NOT a requisite for the application of payment?

There must be multiple creditors involved. Signup and view all the answers

What is the consequence of a merger taking place in the person of the guarantor?

It only extinguishes the secondary contract. Signup and view all the answers

When is a payment made to an incapacitated creditor deemed valid?

Only when the payment is beneficial. Signup and view all the answers

In Case 1, when Ader pays D's debt to C, under what condition is this payment valid?

If Ader intends to seek reimbursement from D. Signup and view all the answers

In Case 2, what can T collect from D after the assignment of credit rights?

P 5,000. Signup and view all the answers

Which statement is true regarding payment made by a third person?

It is considered a donation if there's no intention of reimbursement. Signup and view all the answers

In what situation is a payment made to a third person NOT valid to extinguish the debtor's obligation to the creditor?

When the third person acts as a witness during the payment process. Signup and view all the answers

If N pays S the awarded P 72,000, what can N do regarding collection from R and J?

N can collect P 24,000 each from R and J. Signup and view all the answers

Why is P liable under the contract regarding the sale made by A?

Because it is enough that the principal is capacitated. Signup and view all the answers

B's demand for payment from A after the house was destroyed is valid under which condition?

If the destruction was not due to A's fault. Signup and view all the answers

What could S do to satisfy the court's award of P 72,000?

Collect P 24,000 each directly from N, R and J. Signup and view all the answers

What is the consequence of A's agent acting beyond their powers in the sale to X?

The sale is deemed unenforceable due to the agent's status. Signup and view all the answers

What must occur for B to legally demand payment from A after the house destruction?

A must find another property to mortgage. Signup and view all the answers

In what scenario can P avoid liability for the sale made by A?

If the sale complies with the authority given but on a cash basis. Signup and view all the answers

What type of obligation is defined as having several prestations due but only one performance is sufficient?

Facultative Signup and view all the answers

Which obligation is immediately demandable because it is not subject to conditions or specific dates?

Pure obligation Signup and view all the answers

Which scenario represents a conditional obligation?

Ace is to pay Walter P 5,000 if he has the means. Signup and view all the answers

What is the legal status of the obligation described: 'I will give this ring, provided I can have it back if I want'?

Valid, but disregards the debtor's potestative condition. Signup and view all the answers

What happens to an alternative obligation if the right belongs to the debtor and the loss is due to their fault?

The obligation ceases completely if none of the prestations are available. Signup and view all the answers

In the scenario where A, B, and C are jointly obligated to deliver a car and B's fault caused the damage, what can X collect from each party?

P 203,000 each from A, B, and C. Signup and view all the answers

Which statement about obligations is false?

A facultative obligation obligates to perform all prestations regardless of choice. Signup and view all the answers

What is a key characteristic of a pure obligation?

It is immediately enforceable. Signup and view all the answers

Study Notes

ACC 216 General Review

Payment by Cession: Creditors become owners of debtor's property. Payment extinguishes obligations to the extent of proceeds. Debtor must be insolvent. Affects all property except exempt from execution.
Dation in Payment: Delivery and transfer of ownership of a thing as performance equivalent.
Tender of Payment: Debtor's offer to pay.
Application of Payment: Obligation evidenced by a promissory note. Assignment of note, even back to original debtor (M), extinguishes obligation through compensation.
Contract of Sale: A principal, nominate, consensual contract.
Instrument Payable at a Determined Time: Instruments payable 30 days after the death of a specific person.
Voidable Contract of Sale: A contract of sale that ensues from violence or intimidation.
Offer Ineffective Before Acceptance: Instances that render offer ineffective include civil interdiction, insanity, intoxication, and insolvency of a party.
Payment to a Third Person: Valid payment to a third person occurs when the creditor ratifies the payment, the debtor is led to believe the third person has authority to receive payment, or a third party is subrogated to the creditor's rights.
Solidary Obligation: When multiple persons are bound to perform an obligation and any one can be compelled to perform it in full. If one is faulted, responsibility is shared by other parties.
Minor Selling Property: A contract made by a minor exceeding authorized authority is not enforceable.
Mortgage and Fire Damage: Loss of mortgaged property due to fire, which was not the fault of the mortgagor, does not affect the responsibility to pay the loan.
Characteristics of Payment by Cession: Includes multiple debts, debtor's insolvency, and the exclusion of exempt property from execution.
Alternative obligation: Multiple prestations are due and their performance is required to extinguish the obligation.
Affirmation of Fact (Warranty): A seller’s statement, an affirmation, or a promise about the product that may induce a buyer’s purchase.
Rescissible Contracts: Contracts entered into during a hypnotic spell or drunkenness, or to defraud creditors.
Compensation: Extinguishment of two obligations to the extent that they are equal.
Confusion: One person becomes both creditor and debtor in the same obligation.
Condonation: One party relinquishes a right to the other, it is gratuitous.
Compromise: An agreement made to settle a dispute between parties.
Dation in Payment vs. Sale: While both involve transferring ownership of a thing, in Dation in Payment, the transfer is to extinguish a pre-existing debt. This is different than a sale, which is to transfer ownership in exchange for payment.
Legal Compensation: Extinguishment of two obligations to the extent that they are equal or corresponding.
Special form of Payment: Dation of Payment, Cession, Tender of Payment, and Consignment.
Requirements of Application of Payment: debts must be due, debt must be of different kinds, one debtor, one creditor.
Merger/Confusion: One person becomes both creditor and debtor regarding the same obligation.
Loss of a Determinate Thing: When the loss of a determinate thing extinguishes an obligation is determined by the circumstances in relation to the obligation and the contractual agreements; including risk-assumption and agreed-upon terms.
Compensation: When two parties owe each other sums of money, the amounts are offset against each other.
Suspensive Condition: When the obligation depends on an event that has not yet occurred in the future.
Resolutory Condition: A contract where the parties are obligated until a specific event happens, and at that point, the obligation ceases.
Effect of Loss of Prestation: Consequences for the loss of a prestation (or object intended to be delivered) caused by the debtor.
Solidary Obligation: Multiple persons obligated are jointly or severally responsible for the obligation; any one can be compelled to perform it in full.
Joint Obligation: Multiple parties jointly obligated, with all required to perform the obligation.

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Description

Test your knowledge on the various forms of payment methods and obligations in contract law. Explore key concepts such as cession, dacion en pago, and compensation. This quiz is essential for understanding critical legal principles in financial obligations.