Contract Validity and Interpretation
16 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What must be true for a written contract to be interpreted correctly?

  • The terms should be vague to allow for flexibility
  • The contract must be signed by all parties involved
  • The terms must be clear and uncontested (correct)
  • The contract must include multiple amendments

    • Which of the following describes contracts that can be canceled due to significant losses suffered by the parties?

  • Unenforceable contracts
  • Void contracts
  • Formal contracts
  • Rescissible contracts (correct)

    • Which type of contract is defined by its execution method as 'formal'?

  • Real contract (correct)
  • Gratuitous contract
  • Bilateral contract
  • Consensual contract

    • What is a characteristic of all contracts?

    <p>They embody freedom and mutuality (B)</p> Signup and view all the answers

    Which of the following is NOT considered an unenforceable contract?

    <p>An unwritten sale worth less than P500 (C)</p> Signup and view all the answers

    What type of contract involves agreements made with evident premeditation or cruelty?

    <p>Culpable contracts (D)</p> Signup and view all the answers

    Which of the following best describes the term 'mutuality' in contract law?

    <p>The requirement that both parties give consent (C)</p> Signup and view all the answers

    Which of the following represents a characteristic of unilateral contracts?

    <p>Only one party is obligated to perform (C)</p> Signup and view all the answers

    Which situation describes a rescissible contract?

    <p>Agreed upon by guardians if the wards suffer lesion exceeding one-fourth. (B)</p> Signup and view all the answers

    Which type of contract requires a written agreement when it pertains to a matter lasting more than one year?

    <p>Unenforceable contract (D)</p> Signup and view all the answers

    What distinguishes a voidable contract from other types of contracts?

    <p>It is valid until one party chooses to annul it. (B)</p> Signup and view all the answers

    What is an example of an unenforceable contract?

    <p>An unrecorded promise to pay debt after one year. (B)</p> Signup and view all the answers

    Which type of classification of contracts pertains to the responsibilities of the parties involved?

    <p>Bilateral (B)</p> Signup and view all the answers

    What characteristic is essential for all contracts to be valid?

    <p>Freedom of will (C)</p> Signup and view all the answers

    Which type of contract representation could lead to potential fraud claims?

    <p>Contracts executed by a guardian for a minor. (A)</p> Signup and view all the answers

    What does mutuality in contract law entail?

    <p>Both parties have a shared understanding regarding the contract. (A)</p> Signup and view all the answers

    Flashcards

    Rescissible Contract

    A contract that can be cancelled due to specific circumstances, like fraud or unfairness.

    Void Contract

    A contract with no legal effect from the start.

    Voidable Contract

    A contract that one party can choose to cancel.

    Unforceable Contract

    A contract that a court will not enforce due to procedural problems.

    Signup and view all the flashcards

    Characteristics of a valid Contract

    A contract must have freedom, obligatory, mutuality, and relativity.

    Signup and view all the flashcards

    Classification of Contract by execution

    Contracts are categorized as consensual, real, or formal/solemn, based on how agreement is reached.

    Signup and view all the flashcards

    Unilateral Contract

    Only one party has an obligation to uphold contractual terms.

    Signup and view all the flashcards

    Bilateral Contract

    Both parties have obligations under the contract.

    Signup and view all the flashcards

    What type of contract is cancellable?

    Rescissible contracts are cancellable due to factors like fraud or unfairness to a party, leading to significant disadvantage.

    Signup and view all the flashcards

    What contracts lack proper authority?

    Unforceable contracts are invalid because they lack the necessary legal authority to be recognized.

    Signup and view all the flashcards

    What types of contracts are legal but can be cancelled?

    Voidable contracts can be set aside by one of the parties involved due to issues such as fraud or duress.

    Signup and view all the flashcards

    What type of contract is immediately invalid?

    Void contracts lack legal effect from the beginning, meaning they are unenforceable and never had legal standing.

    Signup and view all the flashcards

    What are the characteristics of a valid contract?

    Valid contracts must be based on freedom, obligation, mutuality (agreement between parties), and relativity (impact on parties involved).

    Signup and view all the flashcards

    How are contracts classified by execution?

    Contracts are classified as consensual (formed by agreement), real (requires an action to be completed), or formal/solemn (requires specific form or formalities).

    Signup and view all the flashcards

    What is a unilateral contract?

    In a unilateral contract, only one party has an obligation to fulfill the terms of the agreement.

    Signup and view all the flashcards

    What is a bilateral contract?

    In a bilateral contract, both parties have obligations to fulfill the terms of the agreement.

    Signup and view all the flashcards

    Study Notes

    Article 1157

    Obligation arise from:

    1. Law

    2. Contracts

    3. Quasi-contracts

    4. Acts or omissions punished by law

    5. Quasi-delicts

    CONTRACTS are FOR EVERYONE

    CONTRACTS are EVERYWHERE

    CONTRACTS - “A contact is a meeting of

    minds between two persons whereby one

    binds himself, with respect to the other, to give

    something or to render some service.” (Art.

    1305, Civil Code)

    ● LAW - By Congress (Republic Acts)

    ● ORDINANCES - By Local Governments

    ● REGULATIONS - By Administrative Bodies

    (DOH, LTO, etc.)

    ● Law Between the Parties - CONTRACTS

    ● Constitution

    “The law is deemed written into every

    contract.” Heirs of Severina San Miguel v

    Court of Appeals

    Is it possible for a contract to affect the rights of

    others who are not parties to it?

    ● Art. 1311. “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…”

    ● A creditor may collect the loan against the

    estate (inheritance/property) of a dead

    debtor.

    ● A son cannot inherit the employment of his

    dead father.

    THE ESSENTIAL ELEMENTS:

    ● Parties (Obligor & Obligee)

    LEGAL CAPACITY

    - When a person is authorized by law to

    enter into a contract.

    Examples of contracts where a party

    has no legal capacity:

    - Marriage where one of the

    parties is below 18 years old.

    - Contract of sale of cigarettes to

    a 15-year old smoker.

    - Contract of donation of real

    estate to a foreigner.

    If a party in a contract has no legal

    capacity, the contract is void.

    OBJECT

    ● Its object must be a service NOT contrary to

    law, morals, good customs, public order,

    or public policy. (Art. 1347, Civil Code)

    ● Art. 1407. “The following contracts are

    inexistent and VOID from the beginning:

    (1) Those whose cause, object or purpose is

    contrary to law, morals, good customs,

    public order, or public policy.

    ➔ Some examples of contracts against

    LAW:

    ● Agreement of spouses to separate

    ● Prostitution

    Some examples of contracts against MORALS:

    ● Simulation of births

    Some examples of contracts against GOOD

    CUSTOMS:

    ● Living separately when you reach 18

    Some examples of contracts against PUBLIC

    ORDER:

    ● Faked or forged documents (e.g.

    diploma)

    ● Falsification

    ● Granted to humans, specific professions

    only (e.g. Robots in Hospitals as

    Doctors)

    Some examples of contracts against PUBLIC

    POLICY:

    ● Very high interest rates

    ● Sale of one’s organs

    PUBLIC POLICY:

    ● State LIMITATIONS on personal rights for

    community welfare.

    ● You don’t violate others’ rights

    ● You don’t harm others

    ● Limit on what you can do

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Explore the key concepts of contract validity, interpretation, and classifications such as rescissible, voidable, and unenforceable contracts. This quiz covers the fundamental principles that govern legal agreements and the implications of mistakes, fraud, and authority in contract law.

    More Like This

    Conditions de validité d'un contrat
    88 questions

    Conditions de validité d'un contrat

    BriskRealism400 avatar
    BriskRealism400
    Contract Law: Duress and Its Effects
    48 questions

    Contract Law: Duress and Its Effects

    TranquilMossAgate8086 avatar
    TranquilMossAgate8086
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser