Obligations and Contracts Quiz
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Questions and Answers

What is the maximum penalty for treason and murder?

  • Death (correct)
  • Reclusion Perpetua
  • Prision Correccional
  • Arresto Mayor

Which act is classified under Arresto Mayor?

  • Reclusion Temporal
  • Serious Physical Injuries
  • Prostitution (correct)
  • Theft

What distinguishes reckless imprudence resulting in homicide from reckless imprudence resulting in murder?

  • Homicide is a lesser offense.
  • Murder involves negligence.
  • Homicide involves intent to kill.
  • Murder requires premeditation. (correct)

What is the classification for the crime of using fictitious names?

<p>Arresto Mayor (D)</p> Signup and view all the answers

Which of the following is NOT a factor that can elevate homicide to murder?

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

Which law addresses the crime of carnapping?

<p>R.A. 10883 (D)</p> Signup and view all the answers

Which crime has a penalty ranging from Arresto Mayor to Prision Correccional?

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

What is the penalty for criminal negligence leading to physical injuries?

<p>Prision Correccional (D)</p> Signup and view all the answers

Which of the following is NOT an element that gives rise to an obligation?

<p>Social agreements (C)</p> Signup and view all the answers

In the context of contracts, who is the active subject?

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

What is the purpose of the object (or 'prestation') in a contract?

<p>To specify the subject matter of the contract (B)</p> Signup and view all the answers

Which example represents a contract with a lack of legal capacity?

<p>A 15-year-old purchasing a video game (D)</p> Signup and view all the answers

What does the cause of a contract refer to?

<p>The juristic ties that link the parties (A)</p> Signup and view all the answers

Which statement correctly reflects the effect of contracts regarding third parties?

<p>Contracts only affect parties directly involved, their assigns, and heirs. (D)</p> Signup and view all the answers

What would likely render a contract void?

<p>The object of the contract being contrary to public policy (B)</p> Signup and view all the answers

Which scenario illustrates a valid contractual obligation?

<p>An adult donates real estate to a compliant heir (B)</p> Signup and view all the answers

What is required for a formal contract to be valid?

<p>It requires legal formalities. (B)</p> Signup and view all the answers

Which type of contracts are considered void?

<p>Contracts entered into under fraud or mistake. (D)</p> Signup and view all the answers

In the context of contracts, what does 'rescissible' mean?

<p>The contract is valid but can be canceled due to injury. (B)</p> Signup and view all the answers

What is an unenforceable contract?

<p>A contract that cannot be enforced unless ratified. (A)</p> Signup and view all the answers

Which of the following situations falls under ‘negotiium gestio’?

<p>Someone manages a business operation without permission. (A)</p> Signup and view all the answers

How does 'solutio indebiti' relate to payment by mistake?

<p>It mandates the return of payments made without a right to demand. (A)</p> Signup and view all the answers

Which type of contract requires written documentation due to its subject matter?

<p>Real property transactions. (C)</p> Signup and view all the answers

What does the term 'ratified' mean in contract law?

<p>To approve a contract. (A)</p> Signup and view all the answers

Which describes the ‘mutuality’ characteristic of contracts?

<p>Both parties are equally obligated to each other. (B)</p> Signup and view all the answers

According to the stages of a contract, what follows after perfection?

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

What type of contract is a 'commodatum' classified as?

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

What defines a 'voidable contract'?

<p>It is valid until annulled by one party. (A)</p> Signup and view all the answers

In a situation where a student overpays tuition, what legal concept applies?

<p>Solutio indebiti. (C)</p> Signup and view all the answers

Which of the following types of contracts can be enforced if ratified?

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

What does 'relativity' mean in contract characteristics?

<p>Only parties involved in the contract are affected by its terms. (B)</p> Signup and view all the answers

What defines a contract that is considered absolutely simulated?

<p>The parties have no intention of being bound at all. (C)</p> Signup and view all the answers

Which of the following contracts is considered inexistent and void from the beginning?

<p>A contract that requires some form of illegal act. (A)</p> Signup and view all the answers

In what situation can consent in a contract be considered defective?

<p>When one party is threatened or coerced into agreement. (D)</p> Signup and view all the answers

Which clause indicates that a party's obligation in a contract can become void due to its terms being impossible?

<p>Art. 1409 (C)</p> Signup and view all the answers

What must a contract's object be in order to be valid?

<p>It must involve something ‘within the commerce of man’. (B)</p> Signup and view all the answers

What is the effect of contracts without a lawful cause?

<p>They produce no legal effects whatsoever. (C)</p> Signup and view all the answers

Which of the following statements about relative simulation is true?

<p>It binds parties to their real agreement without outside consequences. (B)</p> Signup and view all the answers

Which of the following actions is NOT a vice of consent?

<p>Entering the contract without any party present. (B)</p> Signup and view all the answers

What is meant by 'public policy' in the context of contracts?

<p>State limitations on personal rights for the welfare of the community. (D)</p> Signup and view all the answers

Which example illustrates a contract that goes against morals?

<p>An agreement that simulates a birth. (A)</p> Signup and view all the answers

Which element is required for a contract to be perfected?

<p>Meeting of offer and acceptance with clear terms. (B)</p> Signup and view all the answers

What happens if a contract is formed based on unlawful cause?

<p>The contract is void from the beginning. (B)</p> Signup and view all the answers

What is a defining quality of 'vitiated consent'?

<p>Consent obtained through illegitimate means. (B)</p> Signup and view all the answers

Which of the following contracts can be considered against public order?

<p>A contract involving falsified documents. (C)</p> Signup and view all the answers

Flashcards

Obligation

A legal duty to perform a specific action or refrain from a specific action.

Contract

A legally binding agreement between two or more parties.

Obligor

The person who is bound to fulfill an obligation or duty.

Obligee

The person who has the right to demand the fulfillment of an obligation or duty.

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Object of a Contract

The subject matter of a contract, it can be something to give ('to give'), something to do ('to do'), or something to refrain from doing ('not to do').

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Cause of a Contract

The reason or purpose for entering into a contract, it can be expressed as a condition, service, benefit, or purpose.

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Legal Capacity in Contracts

The ability of a person to enter into a contract under the law, meaning they are authorized to make legally binding agreements.

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Void Contract

A contract that is unenforceable due to a missing essential element, such as lack of legal capacity, or an illegal object.

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Revised Penal Code

The primary code of criminal laws in the Philippines, outlining offenses and their corresponding penalties.

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Reclusion Perpetua

A penalty for serious offenses, equivalent to life imprisonment.

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Treason

An act of betrayal against one's country, punishable by a long prison term up to death.

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Murder

Intentional killing of a person with aggravating circumstances.

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Criminal Negligence

An act or omission that causes harm to another due to carelessness or recklessness, but without intent.

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Reckless Imprudence

A type of criminal negligence involving a high degree of carelessness, resulting in harm.

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Simple Imprudence

A type of criminal negligence involving a lesser degree of carelessness.

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Homicide vs. Murder

Homicide is the unlawful killing of a person, while murder is intentional killing with aggravating circumstances.

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Contracts Contrary to Law

Agreements that violate legal statutes or regulations.

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Contracts Against Morals

Agreements that violate ethical principles or widely accepted societal norms.

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Contracts Against Good Customs

Agreements that go against established social practices and traditions.

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Contracts Against Public Order

Agreements that disrupt public safety, peace, or the well-being of society.

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Contracts Against Public Policy

Agreements that undermine the well-being of the community or promote unfair practices.

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What's beyond the Commerce of Man?

Things that are illegal to trade or sell, including stolen items, elements of a crime, prohibited items, and public domain materials.

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Essential Elements of a Contract

Key components that must be present for a valid contract to exist, including parties, object, cause, and consent.

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What is the Object of a Contract?

The subject matter of the agreement, which must be legal, possible, and within the commerce of man.

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What is the Cause of a Contract?

The reason or purpose for entering the agreement, which must be legal and valid.

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What is Consent in a Contract?

The voluntary agreement by parties to the terms of an agreement, which must be freely given and without any defects.

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Absolute Simulation of a Contract

A fake contract where parties intend no real legal effect, essentially a sham agreement.

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Relative Simulation of a Contract

A contract where parties conceal their real agreement, intending to deceive others.

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Vitiated Consent

Consent that is defective due to factors like mistake, violence, intimidation, undue influence, or fraud.

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Voidable Contract Due to Vitiated Consent

A contract where consent is flawed, making it legally invalid until annulled by a court.

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Undue Influence

When someone takes advantage of their power over another to deprive them of free choice.

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Formal Contract

A contract that requires specific legal procedures to be valid, like notarization.

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Reformation of Instruments

Correcting errors in a written contract due to mistakes, fraud, inequality, or accidents.

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Rescissible Contract

A valid contract that's cancellable if one party suffers significant financial loss (more than 1/4 of the value).

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Voidable Contract

A seemingly valid contract that can be nullified due to lack of genuine consent (e.g., fraud, duress).

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Unenforceable Contract

A contract that cannot be legally enforced, even though it may have valid elements.

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Nominate Contract

A contract with a specific name given by law (e.g., lease, sale, agency).

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Innominate Contract

A contract without a specific name in law, often customized for specific needs.

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Consensual Contract

A contract formed by mutual agreement alone, without additional requirements.

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Real Contract

A contract only valid after the delivery of the subject matter (typically a good).

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Solemn Contract

A contract requiring specific legal forms to be valid (e.g., notarization, public document).

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Onerous Contract

A contract where both parties have reciprocal obligations (e.g., buying and selling goods).

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Remuneratory Contract

A contract where one party is rewarded for a service already rendered (e.g., payment for work done).

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Gratuitous Contract

A contract where one party benefits without giving anything in return (e.g., donation, lending without interest).

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Study Notes

Obligations and Contracts

  • Obligations arise from law, contracts, quasi-contracts, acts/omissions punished by law, and quasi-delicts.
  • Contracts are defined as "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).
  • Key elements of an obligation/contract include:
    • Passive subject (Obligor): The party fulfilling the obligation (e.g., Debtor, Tenant, Mortgagor).
    • Active subject (Obligee): The party demanding fulfillment (e.g., Creditor, Landlady, Mortgagee).
    • Object (or prestation): "To give, to do, or not to do." Real obligation (to give), personal obligation (to do/not to do).
    • Object (Purpose): Subject matter of the contract (e.g., sale, lease, loan, donation, agency).
    • Cause (Juridical/Legal Tie): Condition, service, benefit, purpose (Art. 1350).
  • Contracts affect parties, assigns, and heirs, unless rights/obligations are non-transferable.
  • A creditor can collect from a deceased debtor's estate.

Essential Elements of a Valid Contract

  • Parties: Buyer-Seller, Bank-Client, Donor-Donee etc.
  • Legal Capacity: Ability to enter into contracts.
  • Example of lack of capacity: Marriage under 18, sale of cigarettes to a minor.
  • Object: Must not violate law, morals, good customs, public order, or public policy. (Art. 1347).
  • Cause/Purpose: The reason behind the contract.
  • Consent: Freely given. Example of defective consent: mistake, violence, intimidation, undue influence, fraud (Art. 1330).

Defective Contracts

  • Void Contracts: Contracts with cause, object, or purpose contrary to law, morals, etc. (Art. 1407). Examples: agreement of spouses to separate, prostitution.
  • Voidable Contracts: Consent given through mistake, violence, intimidation, undue influence, or fraud.
  • Rescissible Contracts: Valid but cancellable due to injury to a party.
  • Unenforceable Contracts: Cannot be enforced unless ratified. Examples include unwritten agreements for more than a year.
  • Absolute Simulation: Parties don't intend to be bound. The contract is void.
  • Relative Simulation: Parties conceal their true agreement. Contract binding on parties according to their real agreement, unless prejudicial to third parties, in violation of morals/public order.

Interpretation, Formalities, and Other Considerations

  • Interpretation: Clear terms; literal meaning controls.
  • Formal Contracts (Real Estate Agreements): Require formalities, such as notarization.
  • Written Contracts: Required for real rights, transactions over P500, or transactions exceeding one year.
  • Reformation of Instruments: Correcting written words to reflect true agreement.
  • Payment (Solutio Indebiti): Repaying money paid by mistake.
  • Unauthorized Management (Negotiorum Gestio): Obligations in managing the property of another without power.
  • Criminal Negligence: Damages resulting from acts/omissions with fault/negligence. Criminal negligence is a form of quasi-delict.

Classification of Contracts

  • Nominate Contracts: Contracts with specific legal names.

    • Examples: commodatum (loan for use), lease, sale, agency.

  • **Innominate Contracts:**Contracts without specific names.

  • Consensual Contracts: Perfected by consent.

  • Real Contracts: Perfected by delivery.

  • Solemn/Formal Contracts: Require specific legal formalities.

  • Onerous Contracts: Both parties obligated to each other.

  • Remuneratory Contracts: Reward for service rendered.

  • Gratuitous Contracts: One party gratuitously giving something to other party.

  • Classifications of defective contracts

    • Rescissible contracts: valid because all the requisites are present, however, cancellable due to injury to one of the parties
    • Voidable contracts: valid until annulled unless there has been ratification. The defect is caused by the vice of consent
    • Unenforceable contracts: cannot be enforced unless ratified
    • Void or inexistent contracts: absolutely null or voided, cannot be ratified

  • Characteristics: Freedom, obligatory, mutuality, relativity

  • Stages of contract: Preparation/negotiation, perfection/birth, consummation/termination

  • Reminder: RA 10909 prohibits short-changing customers. Penalties include fines & suspensions.

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Description

Test your knowledge on obligations and contracts, focusing on key definitions and elements outlined in the Civil Code. This quiz covers the roles of obligor and obligee, the object of contracts, and the legal ties that bind them. Enhance your understanding of contract law principles!

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