39 Questions
Can Mr. Ramos hold Mr. Aldeguer liable for damages?
No, because there was no justifiable cause for the failure to deliver the wines
What are the essential elements of a contract?
Consent, object certain, and cause of the obligation
Which characteristics must a contract possess according to Cabulay & Carpio-Aldeguer (2015)?
Mutuality of Contracts
When are contracts of adhesion considered void?
When only one party drafts almost all the provisions and imposes them on the weaker party
In what situation will the Supreme Court strike down a contract as void?
When the weaker party has no opportunity to bargain equally with the dominant party
What is the primary distinguishing feature of a contract of adhesion?
One party predominantly drafts provisions imposed on the other party
Why are contracts of adhesion not considered invalid per se?
'Mutuality of Contracts' principle ensures their validity
What happens when a weaker party in a contract is reduced to the alternative of taking it or leaving it?
The contract may be struck down as void by a legal authority.
What makes a contract valid according to the provided text?
Mutuality of Contracts and certainty of object.
Which of the following best describes an obligation under the law?
A legal duty that must be fulfilled based on the sources from which it arises
What type of obligation requires the debtor to refrain from performing certain acts?
Obligation not to do
Under an obligation to do, which of the following would the debtor be required to perform?
Provide a service or complete a work for the creditor
What is the primary consequence if a debtor fails to comply with an obligation?
The debtor will be required to pay damages to the creditor
In an obligation to give, what is the debtor required to deliver to the creditor?
A movable or immovable thing
Which of the following would be considered an obligation to do under the law?
A contract for an event organizing service
What is the first stage in the formation of a contract?
Generation
Which type of contract is an exception to the principle of consensuality?
Real contracts, such as loan or deposit
What is the essential basis for a valid contract?
A meeting of minds between the parties
Which of the following is NOT an essential element of a contract?
Consideration
What is the primary characteristic of a rescissible contract?
It can be invalidated by one party
What principle states that contracts are binding only on the parties involved and their successors-in-interest?
Relativity of contracts
What is the primary characteristic of a contract of adhesion?
It is a written contract with terms drafted by only one party
What is the stage where the purpose of the contract is fulfilled?
Consummation
Which of the following statements about contracts of adhesion is TRUE?
They are binding as any other contract unless found void
When may the Supreme Court strike down a contract of adhesion as void?
When the weaker party was deprived of bargaining power
Which principle states that contracts must not be contrary to law, morals, good customs, public order, and public policy?
Autonomy of contracts
Which of the following is a characteristic of a contract according to Cabulay & Carpio-Aldeguer (2015)?
It requires mutuality of consent and performance
Which of the following is NOT a source of obligation according to Article 1157?
Torts
What is the primary characteristic of a quasi-contract?
It is based on the principle that no one should enrich himself at the expense of another.
Which of the following is an example of a quasi-contract?
Payment made by mistake, where there is an obligation to return the payment
What is the obligation in the case of negotiorum gestio, a type of quasi-contract?
To attend to the business until the completion of the undertaking and its incidents, or to call upon the owner to relieve him of it
Which of the following is an example of an obligation arising from a contract?
The duty of a party to pay for the excess number of persons attending a catering event as stipulated in the contract
Which of the following is an example of an obligation arising from law?
The duty of a taxpayer to pay taxes
What is the primary way an obligation can be extinguished?
The obligor pays the exact amount owed
What is the legal term used to describe an event that exempts an obligor from liability?
Force majeure
What are the two general causes of fortuitous events?
Natural disasters and human-caused disasters
What is the legal definition of 'loss' as explained in the text?
When the thing due perishes or goes out of commerce
What is the key difference between a fortuitous event and an act of negligence?
Fortuitous events are extraordinary and unavoidable, while acts of negligence are preventable
How does the text describe the wedding coordinator's liability in the event of a tornado crashing a wedding?
The wedding coordinator is exempt from liability due to the fortuitous event
Study Notes
Contracts and Obligations
- A contract 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.
- The essential elements of a contract are consent, object certain, and cause of the obligation.
Characteristics of a Contract
- Mutuality of Contracts: Its validity and performance cannot be left to the will of only one of the parties.
- Autonomy of Contracts: The parties are free to stipulate terms and provisions in a contract, as long as these are not contrary to law, morals, good customs, public order, and public policy.
- Relativity of Contracts: Contracts are binding only upon the parties and their successors-in-interest.
- Consensuality of Contracts: Contracts are perfected by mere consent, and no form is prescribed by law for their validity.
- Obligatory Force of Contracts: By the obligatory force of contracts, it constitutes the law as between the parties who are compelled to perform under the threat of being sued in the courts of law.
Stages of a Contract
- Generation: The preliminary stage or process for the formation of the contract. It includes the bargaining of the subject of obligation and the consideration or cause.
- Perfection: The birth of the contract.
- Consummation: The fulfillment of the purpose for which the contract was constituted.
Defective Contracts
- Rescissible Contract: A contract that may be rescinded through a proper action for rescission.
- Examples of rescissible contracts include:
- Those entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof.
- Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number.
- Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them.
- Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority.
Obligations
- An obligation is a juridical necessity to give, to do, or not to do.
- There are three kinds of obligations under the law: obligation to give, to do, or not to do.
- Sources of an obligation include law, contracts, quasi-contracts, delicts or acts or omissions punishable by law, and quasi-delicts.
Extinguishing Obligations
- An obligation may be extinguished upon payment or fulfillment of the obligation.
- An obligation arising from a contract may also be extinguished upon the loss of the thing due, provided there is no fault or negligence on the part of the obligor.
- A fortuitous event, also known as force majeure, is a term that exempts an obligor from liability.
Test your knowledge about rescissible contracts and the essential requisites of a valid contract. Explore the conditions under which contracts can be rescinded as prescribed by law.
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