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Questions and Answers
What is the maximum penalty for treason and murder?
What is the maximum penalty for treason and murder?
Which act is classified under Arresto Mayor?
Which act is classified under Arresto Mayor?
What distinguishes reckless imprudence resulting in homicide from reckless imprudence resulting in murder?
What distinguishes reckless imprudence resulting in homicide from reckless imprudence resulting in murder?
What is the classification for the crime of using fictitious names?
What is the classification for the crime of using fictitious names?
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Which of the following is NOT a factor that can elevate homicide to murder?
Which of the following is NOT a factor that can elevate homicide to murder?
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Which law addresses the crime of carnapping?
Which law addresses the crime of carnapping?
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Which crime has a penalty ranging from Arresto Mayor to Prision Correccional?
Which crime has a penalty ranging from Arresto Mayor to Prision Correccional?
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What is the penalty for criminal negligence leading to physical injuries?
What is the penalty for criminal negligence leading to physical injuries?
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Which of the following is NOT an element that gives rise to an obligation?
Which of the following is NOT an element that gives rise to an obligation?
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In the context of contracts, who is the active subject?
In the context of contracts, who is the active subject?
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What is the purpose of the object (or 'prestation') in a contract?
What is the purpose of the object (or 'prestation') in a contract?
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Which example represents a contract with a lack of legal capacity?
Which example represents a contract with a lack of legal capacity?
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What does the cause of a contract refer to?
What does the cause of a contract refer to?
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Which statement correctly reflects the effect of contracts regarding third parties?
Which statement correctly reflects the effect of contracts regarding third parties?
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What would likely render a contract void?
What would likely render a contract void?
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Which scenario illustrates a valid contractual obligation?
Which scenario illustrates a valid contractual obligation?
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What is required for a formal contract to be valid?
What is required for a formal contract to be valid?
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Which type of contracts are considered void?
Which type of contracts are considered void?
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In the context of contracts, what does 'rescissible' mean?
In the context of contracts, what does 'rescissible' mean?
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What is an unenforceable contract?
What is an unenforceable contract?
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Which of the following situations falls under ‘negotiium gestio’?
Which of the following situations falls under ‘negotiium gestio’?
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How does 'solutio indebiti' relate to payment by mistake?
How does 'solutio indebiti' relate to payment by mistake?
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Which type of contract requires written documentation due to its subject matter?
Which type of contract requires written documentation due to its subject matter?
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What does the term 'ratified' mean in contract law?
What does the term 'ratified' mean in contract law?
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Which describes the ‘mutuality’ characteristic of contracts?
Which describes the ‘mutuality’ characteristic of contracts?
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According to the stages of a contract, what follows after perfection?
According to the stages of a contract, what follows after perfection?
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What type of contract is a 'commodatum' classified as?
What type of contract is a 'commodatum' classified as?
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What defines a 'voidable contract'?
What defines a 'voidable contract'?
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In a situation where a student overpays tuition, what legal concept applies?
In a situation where a student overpays tuition, what legal concept applies?
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Which of the following types of contracts can be enforced if ratified?
Which of the following types of contracts can be enforced if ratified?
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What does 'relativity' mean in contract characteristics?
What does 'relativity' mean in contract characteristics?
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What defines a contract that is considered absolutely simulated?
What defines a contract that is considered absolutely simulated?
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Which of the following contracts is considered inexistent and void from the beginning?
Which of the following contracts is considered inexistent and void from the beginning?
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In what situation can consent in a contract be considered defective?
In what situation can consent in a contract be considered defective?
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Which clause indicates that a party's obligation in a contract can become void due to its terms being impossible?
Which clause indicates that a party's obligation in a contract can become void due to its terms being impossible?
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What must a contract's object be in order to be valid?
What must a contract's object be in order to be valid?
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What is the effect of contracts without a lawful cause?
What is the effect of contracts without a lawful cause?
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Which of the following statements about relative simulation is true?
Which of the following statements about relative simulation is true?
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Which of the following actions is NOT a vice of consent?
Which of the following actions is NOT a vice of consent?
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What is meant by 'public policy' in the context of contracts?
What is meant by 'public policy' in the context of contracts?
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Which example illustrates a contract that goes against morals?
Which example illustrates a contract that goes against morals?
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Which element is required for a contract to be perfected?
Which element is required for a contract to be perfected?
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What happens if a contract is formed based on unlawful cause?
What happens if a contract is formed based on unlawful cause?
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What is a defining quality of 'vitiated consent'?
What is a defining quality of 'vitiated consent'?
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Which of the following contracts can be considered against public order?
Which of the following contracts can be considered against public order?
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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
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Nominate Contracts: Contracts with specific legal names.
- Examples: commodatum (loan for use), lease, sale, agency.
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**Innominate Contracts:**Contracts without specific names.
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Consensual Contracts: Perfected by consent.
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Real Contracts: Perfected by delivery.
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Solemn/Formal Contracts: Require specific legal formalities.
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Onerous Contracts: Both parties obligated to each other.
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Remuneratory Contracts: Reward for service rendered.
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Gratuitous Contracts: One party gratuitously giving something to other party.
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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
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Characteristics: Freedom, obligatory, mutuality, relativity
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Stages of contract: Preparation/negotiation, perfection/birth, consummation/termination
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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!
