Contracts and Obligations Law

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

When is a payment to a third person considered valid?

Always valid.

Always invalid.

Valid only if it redounds to the benefit of the creditor and the burden of proving rests upon the creditor. (correct)

Valid only if it redounds to the benefit of the creditor and the burden of proving rests upon the debtor.

Which contract is not subject to reform?

A contract of simple donation. (correct)

A partially executed contract of loan.

A contract of sale of real property entered into in a private instrument.

A contract of pledge.

What is the required form for the donation of movables valued over Php 5,000.00?

In public instrument only if the value exceeds Php 5,000.00. (correct)

In writing.

In a public instrument.

In writing only if the value exceeds Php 5,000.00.

Which statement regarding the interpretation of contracts is correct?

Both statements are correct. Signup and view all the answers

What type of subrogation occurs by the agreement of the parties?

Conventional subrogation. Signup and view all the answers

What governs the obligations arising from the written instrument establishing fundamental government powers?

Constitution. Signup and view all the answers

What defines a real obligation?

An obligation to safeguard real property. Signup and view all the answers

Which statement is true about voluntary payment of a third person for a prescribed debt?

It is subject for reimbursement. Signup and view all the answers

Under what condition can a payment to a third person be considered valid?

Only if it benefits the creditor with the burden of proof on the creditor Signup and view all the answers

Which type of contract is characterized as unenforceable due to the vitiation of consent?

Contracts that were executed under duress or fraud Signup and view all the answers

What is the nature of a facultative obligation?

Involves multiple performances where only one suffices Signup and view all the answers

In terms of donation of movables, what is the correct form required for items valued above Php 5,000.00?

Public instrument must be used Signup and view all the answers

Which statement concerning innominate contracts is accurate?

They are governed solely by the joint agreement of the parties Signup and view all the answers

Which of the following contracts cannot undergo reform?

Contracts of simple donation Signup and view all the answers

Which statement about the burden of proof concerning valid payment is correct?

The burden of proof lies only on the creditor if the payment benefits them Signup and view all the answers

Which type of subrogation arises from mutual agreement between parties?

Conventional subrogation based on agreement Signup and view all the answers

Study Notes

Payment to a Third Person

Payment to a third person is valid only if it benefits the creditor, and the creditor bears the burden of proof.

Reformable Contracts

Contracts of sale of real property in private instruments can be reformed.
Contracts of pledge can be reformed.
Contracts of simple donation can be reformed.
Partially executed contracts of loan can be reformed.

Donation of Movables

Donations of movables are typically made in a public instrument.

Contract Interpretation

If a contract has multiple meanings, it should be interpreted in a way that makes it effective.
The rules of interpretation in the Rules of Court are also relevant in contract construction.

Subrogation by Agreement

Conventional subrogation is subrogation by agreement of the parties.

Source of Obligation from Fundamental Government Powers

An obligation arising from a written document establishing fundamental government powers originates from the Constitution.

Obligations with Multiple Possible Performances

An obligation where multiple things are owed, but only one performance is sufficient, is an alternative obligation.

Innominate Contracts

Innominate contracts are governed by the agreement of the parties, and by analogous contracts.

Real Obligations

Obligations to give tangible property (e.g., a car) are real obligations.

Voidable Contracts

Contracts with vitiated consent (e.g., due to mistake, violence, or fraud) are voidable.

Payment by Third Party

Voluntary payment of a debt by a third party, without the debtor's knowledge, is subject to reimbursement.
Natural obligations, not based on positive law, do not create a right of action.

Studying That Suits You

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

Description

This quiz covers essential concepts in contracts and obligations law, including third-party payments, reformable contracts, and donation of movables. Explore the interpretation of contracts and the principle of subrogation by agreement, along with the sources of obligations from fundamental government powers.