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Questions and Answers
A contract is considered defective if there is a problem with the consent or object of the contract.
A contract is considered defective if there is a problem with the consent or object of the contract.
True
A contract is automatically enforceable if it is signed by all parties involved.
A contract is automatically enforceable if it is signed by all parties involved.
False
The obligation of a contract is limited to the contracting parties only.
The obligation of a contract is limited to the contracting parties only.
True
A contract is void if it is not in writing, even if it is for a period of less than 1 year.
A contract is void if it is not in writing, even if it is for a period of less than 1 year.
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Unilateral contracts, where one party makes a promise in exchange for an act, are invalid.
Unilateral contracts, where one party makes a promise in exchange for an act, are invalid.
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A contract is rescindable if it is entered into under undue influence.
A contract is rescindable if it is entered into under undue influence.
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Contracts entered into under fraudulent circumstances are automatically void.
Contracts entered into under fraudulent circumstances are automatically void.
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A contract is considered void if it is contrary to public policy.
A contract is considered void if it is contrary to public policy.
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A contract is binding even if it is not written in a language that one of the parties understands.
A contract is binding even if it is not written in a language that one of the parties understands.
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The autonomy of contract principle allows parties to enter into contracts that are contrary to law or public policy.
The autonomy of contract principle allows parties to enter into contracts that are contrary to law or public policy.
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Study Notes
Types of Contracts
- Voidable Contract: consent is vitiated or obtained through mistake, violence, intimidation, undue influence, or fraud
- Rescissible Contract: contract causes damage or injury to one of the parties
- Void Contract: contract lacks one, some, or all of the essential elements (C O C)
- Option Contract: grants a person the privilege to buy or not to buy certain objects at any time within the agreed period at a fixed price
- Contract of Adhesion: only one party prepared the contract and the other party simply adhered or affixed their signature
- OnEROUS Contract: there is an interchange of equivalent valuable consideration
- Consensual Contract: perfected by mere consent
- Real Contract: perfected by delivery
- Nominate Contract: contract with a name or title
- Innominate Contract: contract without a name or title and is applied on a case-to-case basis
Characteristics of Contracts
- Autonomy of Contract: contracting parties may enter into such stipulations, clauses, terms, and conditions as they may deem convenient
- Obligatory Force of a Contract: a contract binds both contracting parties because it has the force of law between them
- Mutuality of Contract: a contract must not depend solely upon one party
- Relativity of Contract: contract takes effect only between the parties, their assigns, or heirs
Essential Elements of a Contract (C O C)
- Consent: a meeting of minds between the parties
- Object: things, rights, or services that are not contrary to law, morals, good customs, public order, or public policy
- Cause: the reason or motive behind the contract
Stages of a Contract
- Preparatory Stage: negotiation, bargaining, offer, and counter-offer
- Perfection Stage: all essential elements (C O C) are present
- Consummation Stage: the terms of the contract are implemented
Other Key Concepts
- Stipulation Pour Autrui: stipulation in favor of a third person (exception to relativity of contract)
- Principle of In Pari Delicto: when the defect of a void contract consists in the illegality of its cause or object, and both parties are at fault, the law refuses them every remedy available and will just leave them as they are.
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Description
Test your knowledge of contract law, including the differences between void and voidable contracts, and the various factors that can make a contract voidable, such as mistake, violence, intimidation, and undue influence. This quiz covers the essential concepts of contract law, including sale of goods, real properties, and representation of credit.
