Contract Law Questions and Answers

A contract must be in writing in order to be valid. **FALSE** All contracts are consensual. **FALSE** Nominate contracts are those contracts which have specific designation under existing laws.**TRUE** All stipulations and conditions agreed by the parties must be complied with by the...

A contract must be in writing in order to be valid. **FALSE** All contracts are consensual. **FALSE** Nominate contracts are those contracts which have specific designation under existing laws.**TRUE** All stipulations and conditions agreed by the parties must be complied with by the parties. **FALSE** Contracts may not validly take effect if its validity solely depends on the sole will of one of the parties. **TRUE** A third person cannot be bound by a contract to which he was not a party in the first place. **FALSE** The heir can be validly liable beyond the value of the property he received from his parent who died. **FALSE** A third person cannot be made liable to a contract to which he was not a party in the first place in case of breach. **FALSE** Real contracts are perfected by the delivery of the thing which is the object of the contract. **TRUE**. One of the accidental elements of a valid contract is a valid object. **FALSE** A contract to validly exist, there must only be two (2) persons who gave their consent. **FALSE** Under the Cognition Theory, an acceptance of the offer is binding on the offerer the moment the offeree agrees to the offer without qualification. **FALSE** An acceptance must at all times be expressly made. **FALSE** An option money in an option contract is part of the purchase price. **FALSE** Business advertisements of things for sale are definite offers under the law. **FALSE** In advertisement for bidding, the lowest bid must at all times win. **FALSE** Contracts entered into by a deaf-mute who do know how to write is valid. **FALSE** Violence refers to mental compulsion as in the case of threat. **FALSE** A simulated contract is void. **FALSE** A human kidney may not validly be the object of a contract of sale. **TRUE** All future things may not be the valid object of a contract. **FALSE**. Cause is the \"why\" in a contract, the reason why one enters into it. **TRUE** Cause is synonymous with motive and can be used interchangeably. **FALSE** Contracts without cause produces no effect. **TRUE** A contract is one of the sources of an obligation. **TRUE** Passive novation the consent of the person to whom the obligation is due is needed. **TRUE** When the accessory obligation is extinguished by means of novation, the principal obligation shall likewise be extinguished. **FALSE** In order that an obligation may be extinguished by another which substitutes the same, it is imperative that it be so declared equivocally. **FALSE** Novation may take place by implication of law. **TRUE** Compensation shall not take place at all times in case one of the debts arises from deposit. **FALSE** Compensation may take place by implication of law. **TRUE** Debts which are not yet due and demandable may be the proper object of compensation. **TRUE** Condonation of debt is essentially gratuitous. **TRUE** Condonation requires the acceptance to whom it is given. **TRUE** Loss of the thing which is the object of the contract extinguishes the obligation. **FALSE** If the thing is lost through the fault of the debtor, the obligation is extinguished. **FALSE** In case of ordinary inflation or deflation of the currency stipulated, the value of the currency at the time of the establishment of the obligation shall be the basis of payment. **FALSE** Dacion en pago is governed secondarily by the law on sales. **TRUE** Incomplete performance of an obligation may lead to complete payment. **TRUE** The creditor may proceed against any of the solidary creditor for payment. **TRUE** Solidarity can be presumed from the intention of the parties. **FALSE** In case the parties failed to agree on the nature of the obligation, a third person may be given the option to choose on whether the obligation is joint or solidary. **FALSE** If the obligation does not fix a condition, but from its nature it can be inferred that a condition was intended, the courts may fix the condition. **FALSE** If the performance solely depends upon the will of the debtor, the obligation is void. **TRUE** Rescission is always implied as stated in Article 1191. **FALSE** An obligation subject to a resolutory period is likewise demandable at once. **TRUE** If the condition is dependent on the sole will of the creditor, the obligation is valid. **TRUE** If the condition is dependent solely on chance, the obligation is likewise valid. **TRUE** Impossible conditions shall annul the obligation upon which the condition depends. **TRUE** When the debtor binds himself when his means permit him to do so, the obligation shall be deemed to be one with a period. **TRUE** The remedy of rescission shall at all times be availed of in case of breach. **FALSE** In case of implied rescission, the remedies provided by law are cumulative. **FALSE** A solidary debtor may avail of the remedy available to his co-solidary debtor as regards the share of the latter. **TRUE** Payment by one of the joint debtor extinguishes the whole obligation. **FALSE** The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from responsibility towards his co-debrors in case the debt had been totally paid by anyone of them before the remission was effected. **TRUE** If two or more solidary debtors offer to pay, the creditor is compelled to accept the offer of the first debtor to have signified his offer to pay. **FALSE** The invalidity of the obligation carries with it the invalidity of the condition. **TRUE** A creditor is not bound to accept payment from a person who has no interest in the obligation. **TRUE** A debtor may substitute anyone in his favour in payment of the debt. **FALSE** A creditor may substitute anyone in his person even without the consent of the debtor. **FALSE** 1. A contract of sale between BBM, who is a minor, and LAM, who is an insane person. **UNENFORCEABLE** 2. A contract of lease not in writing for a period of eight (8) months only. **VALID** 3. A contract entered into between an agent and a 3 person, where the agent acts outside the limits of his authority. **UNENFORCEABLE** 1. The parents of A (minor), sold As cellphone valued at \@20,000.00 for only 14,999.99. **RESCISSIBLE** 2. X (minor), sold his table to BBM. **VOIDABLE** 3. BBM (minor) bought ensaymada from a store owned by PRRD. **VALID** 4. Sara D sold his kidney to X for 500,000.00. **VOID** 5. Leni sold shabu to Jokeno. **VOID** 6. Martin Romu sold the moon to Chiz Es. **VOID** 7. A ring, valued at 01,000.00, was sold orally for 399.00. **UNENFORCEABLE**