CHAPTER 5
QUESTIONS
Tenorio, Femalyn
1. What is the rule of
interpretation where there are
words with different
significations?
2. State the rules in case doubts
impossible to settle
3. Why interpretation of
obscure words or stipulation of
contract shall be construed
against the party who caused
the obscurity?
Bautista,Norshelle S.
1. What is the cardinal rule
when the words or clauses in
the written contract are in
conflict with the manifest
intention of the parties?
2. How much will you pay for a
service rendered if the contract
fails to provide amount of
compensation?
3. S sold car to U. S has many
cars and it cannot be
determined which car was
ANSWERS ARTICLE PAGE
1. Words which have several Article 1375 Pg. 410
meaning shall be understood in that
which is most in keeping in the
nature and object of the contract.
2. If a gratuitous contract is Article 1378 Pg. 413
ambiguous, the least transmission of
rights and interest shall prevail; if an
onerous contract is ambiguous, the
doubt shall be settles in favor of the
greatest reciprocity of interests; and
if the principal object of the contract
is in doubt and cannot be resolved
which causes the intention to be
unknown, hence, contract shall be
null and void.
3. The reason for this is that the one Article 1377 Pg. 411
or the party who drafts the contract
could have prevented mistake or
ambiguity in meaning through
careful choice of words; and
generally, the who causes the
obscurity has ulterior motives.
1. The intention of the contracting Article 1370 Pg. 406
parties should always prevail
because their will has the force of
law between them.
2. In this case, the amount must be Article 1376 Pg. 411
determined by the rate customarily
paid in the place where the services
were rendered.
3. The contract shall be null and void Article 1378 Pg. 414
and it is as if the parties have not
entered any contract at all.
intended by the parties to be
the subject of the sale. Is the
contract valid?

Soriano, Clarisse Joy L.

1. If one interpretation makes a
contract valid and the other
makes it illegal, which should be
effectual? Why?
1. The former interpretation. Article 1373 Pg. 409
Because it is warranted by the rule
stated in Article 1373 pertaining to
stipulations of any contract having
several meanings.

2. Raymundo leased his house 2. No. In article 1374, all provisions Article 1374 Pg. 410
to Edgardo. In the contract, it should, if possible, be so interpreted
was stated that Edgardo should as to harmonize with each other.
not sublease the house without Therefore, Raymundo cannot eject
the written consent of Edgardo, in light of the clause stating
Raymundo. Another stipulation the penalty for the violation of the
therein contained stated that condition.
Edgardo should pay P2000 as
additional rent a month should
he violate this condition.
Edgardo subleased the house
without the written consent of
Raymundo. Has Raymundo the
right to eject Edgardo? What
article could support your
claim?

3. When should the doubts be 3. When the contract in question is Article 1378 Pg. 413
settled in favor of the greatest onerous
reciprocity of interests?

Gatlabayan, Mark Bien I.

1. Explain why the intention of
the parties prevail over terms of
contract
1. It is a cardinal rule in the Article 1370 Pg. 406
interpretation of contracts that the
intention of the contracting parties
should always prevail because their
will has the force of law between
them.

2. It is the process of 2. Interpretation of a contract Article 1370 Pg. 405

ascertaining the intention of the
parties from the written words
contained in the contract.
3. T or F: if the terms of a 3. True because literal meaning Article 1370 Pg. 405
contract are clear and leave no controls when language is clear
doubt upon the intention of the
contracting parties, the literal
meaning of its stipulations shall
control.

Gravito, Danica M.
1. A sold to B a white van. It is
not disputed that the
reasonable value of the van is
100,000. However, the contract
of sale states that the purchase
price is 1,000,000. What
amount shall prevail?
1. The amount 100,000 shall prevail. Article 1370 Pg.406
In interpretation of the contracts,
the intention of the contracting
parties should always prevail
because their will has the force of
law between them

2. In case of doubt in contracts 2. A written agreement should, in Article 1377 Pg.412

of adhesion, which of the
parties shall prevail over the
interpretation of the contract?
case of doubt, be interpreted against
the party who has drawn it, or be
given an interpretation which will be
favorable to the other who, upon
the faith of which, has incurred an
obligation.

3. A sold his unit “including all 3. No, because it is distinct and Article 1372 Pg.408
the appliances therein.” Should different from “appliances”
it be interpreted to include the
table set as well?

Malveda, Jona Lane N.

1. The _____ or ____ of the 1. Usage, Custom Article 1376 Pg. 411
place shall be borne in mind in
the interpretation of the
ambiguities of contract, and
shall fill the omission of
stipulations which are ordinarily
established.

2. Words which may have 2. Nature, object Article 1375 Pg. 410
different signification shall be
understood in that which is in
keeping with ______ and
______ of the contract
3. If the doubts are cast upon 3. Null, void Article 1378 Pg. 412
the principal object of the
contract in such a way that it
cannot be known what may
have been the intention or will
of the parties, the contract shall
be ____ and _____

Biag, John Paul T.

1. What should control when 1. Contracts should be fulfilled Article 1370 Pg.405
the language is clear in the according to the literal sense of their
contract? stipulations, if the terms of a
contract are clear and unequivocal.

2. Fill in the blank: If the 2. Greatest Article 1378 Pg.413

contract is onerous, the doubts
should be settled in favor of the
_____ reciprocity of interest.

3. Kira rendered services to L
but the contract did not state
the amount to be paid by L to
Kira. How should the amount be
determined?
3. The amount must be determined Article 1376 Pg. 411
by the rate customarily paid in the
place where the service were
rendered.

Canja, Benedict B.
1. A and B lives in Malolos. A 1. Rizal. Because this is where the Article 1376 Pg. 411
asked B to build a house in house was built.
Rizal. Their contract does not
provide for compensation to be
paid. In what place will the
custom be based from as an aid
in interpretation?

2. M owns e a computer in his 2. No. The object only refers to Article 1373 Pg.409
room. Additionally, he and B are computer solely owned by M.
siblings that also share a
computer. M sold to Y his
computer. In this case, can the
object of sale also refer to the
computer owned by M and B,
even without B’s consent?

3. B gave his house to C. The 3. Yes. The contract should be Article 1378 Pg.413
contract does not say if it is a presumed as a commodatum
commodatum or a donation.
 Should C give back the house if
B asked?
Meneses, Nico A.
1. X sold Y his car. X has many
cars. The contract is ______?
2. A gave his car to Z. Is the car
is owned by Z only?
3. The interpretation of obscure
term or stipulation shall be
against the party who caused
the obscurity. TRUE OR FALSE
Manlangit, Czarina Joy B.
1. 1. Your friend sold his art
collection to your cousin. The
contract of sale states that the
purchase price is P1, 000,000.
When in actuality the whole
collection only cost half a
million. How much should your
cousin pay to your friend?
2. 2. Milton sold all his vintage cars
to Cami. In the showroom,
there is a 1983 Harley-Davidson
XR1000. Do Cami as a buyer,
consider the Harley-Davidson
XR1000 included in the sale?
3. 3. It is the rule which is generally
applied to contracts of
adhesion.
because it would transmit lesser
rights than a donation.
1. Void, Because the principal object Article 1378 Pg. 414
of the contract cannot be
determined therefore the contract is
null and void
2. No, because the contract is not Article 1378 Pg. 413
clear whether the contract is
donation is donation or
commodatum. Hence it is presumed
that the action of A was
commodatum, therefore it transmits
lesser right and A remains the owner
of the car.
3. TRUE, because one should be Article 1377 Pg. 411-412
careful in drafting a contract and
responsible in case of mistakes and
ambiguity.
1. P500,000. Article 1370 states that, Article 1370 Pg. 306
if the words appear to be contrary to
the evident intention of the parties,
the latter shall prevail over the
former. So, the evident intention of
the parties to buy and sell the art
collection for half a million prevails
because their will has the force of
law between them.
2. No. Under article 1372, it is Article 1372 Pg. 408
mentioned that, special intent
prevails over a general intent. In the
situation given, it shouldn’t be
interpreted to include a vintage
motorcycle when what is sold was
vintage cars.
3. The interpretation of obscure Article 1370 Pg.306
words or stipulations in a contract
shall not favor the party who caused
the obscurity.
Manuel, Elomaisa Joy M.
1. In interpretation of contracts,
why literal meaning controls
when language is clear?
2. Bea sold to Mark her
condominium unit "including all
its contents." In the unit, there
is an antique table belonging to
Mon which Bea only borrowed.
Is the table to be included in the
sale of the unit?
3. What is the rule of
interpretation when there are
various stipulations of a
contract?
Bariring, Margarita C.
1. Korina sold his office room to
Martga "including all the
appliances therein." In the unit,
there is a long table. Is the table
included in the contract of sale
of the office unit?
2. What should prevail, special
intent/provision or a general
intent/provision?
3. Contracts most of the terms
of which do not result from
mutual negotiation between
the parties and usually
prescribed in printed forms
prepared by only one party.
1. Because the question is not what Article 1370 Pg. 405
existed in the minds of the
contracting parties but what
intention is expressed in the
language used.
2. Neither should it be interpreted to Article 1372 Pg. 408
include the antique table borrowed
by Bea to Mon for the reason that
they do not belong to Bea.
3.A must be interpret as a whole and Article 1374 Pg. 410
the intention of the parties is to be
gathered from the entire instrument
and not form particular words,
phrases, or clauses.
1. No, because according to Article Article 1372 Pg. 408
1372, the general terms should not
be understood to comprehend
things that are distinct or different
from those upon which the parties
intended to agree. In this case, the
long table should not be included
because the agreement only
included all appliances.
2. Special intent Article 1372 Pg. 408
3. Contracts of Adhesion Article 1377 Pg. 412
Mortel, Famela L.
1. Give an example of a contract
of adhesion.
2. Al sold his rest house
"including all its contents". In
the house, there is an antique
table belonging to Vin which Vin
agreed to sell to Al. Is the table
be included in the sale.
3. If C gave his guitar to D, but it
cannot be determined whether
C donated it or merely as
commodatum. What should be
the interpretation of this
contract? Donation or
commodatum?
Jimenez, Felice S.
1. What is the reason for the
rule that special intent prevails
over a general intent?
2. Why does the intention of
the parties should always
prevail over terms of contract?
3. What is the rule regarding the 3. When an agreement is susceptible
interpretation of stipulation
with several meanings?
1. plane tickets, bill of ladings for Article 1377 Pg. 412
goods, contract between lawyer and
client (contracts drafted by one
party)
2. Yes. Because it is indicated there Article 1372 Pg. 408
that all its contents must be included
in the sale. Otherwise, the contract
must be ratified.
3. Commodatum Article 1378 Pg. 413
1. The reason for this rule is that Article 1372 Pg. 408
when the parties express themselves
in reference to a particular matter,
the attention is directed to that, and
it must be assumed that it expresses
their intent; whereas, a reference to
some general matter, within which
the particular matter may be
included, does not necessarily
indicate that the parties had that
particular matter in mind.
2. The intention of the parties should Article 1370 Pg. 406
always prevail because their will has
the force of law between them.
Article 1373 Pg. 409
of several meanings, one of which
would render it effectual, it should
be given that interpretation. Thus, if
one interpretation makes a contract
valid and other makes it illegal, the
former interpretation is one which is
warranted by the rule stated in
Article 1373.
Mariano, Alaina Dominique V.
1. As a rule, where in a contract 1. No. The term “all” should not be Article 1372 Pg. 408
there are general and special understood to include S’s
provisions covering the same refrigerator because it is distinct and
subject matter are inconsistent, different from “furniture.”
the latter shall be paramount to
and control over the former
when the two cannot stand
together. For example, S sold
his house “including all the
furniture therein.” The term
“all” should be understood that
it include S’s refrigerator
although distinct and different
from “furniture.” But it should
be interpreted to include chairs
borrowed by S from C for the
reason that they do not belong
to S. Is this situation gives
justice to the provision of
special intent prevails over a
general intent?

2. It is a cardinal rule that what 2. False. It is a cardinal rule in the Article 1370, Pg. 406
really is written on the contract interpretation of contracts that the Evident
must prevail and not the intention of the contracting parties intention of
intention of the contracting should always prevail because their parties
parties because it doesn’t have will has the force of law between prevails over
the force of law between them. them. term of
contract

3. R lives at Paranaque. He 3. Quezon City. Because this is Article 1376 Pg. 411
ordered P, who is living at where the shop is located.
Caloocan, to make a dress. P’s
shop is at Quezon City. There is
clear payment for the dress
indicated in the contract. Where
should be the “custom of the
place” be based to aid
interpretation.

Silos, Gian Selwyn Joy

1. X sold to Y his land. Y has 1. No, the contract shall be null and Article 1378 Pg. 414
many lands. It cannot be void and it is as if the parties have
determined which land was not entered into any contract at all.
intended by the parties to be
the subject sale. Is the contract
valid?
2. A sold his apartment unit to B
“including all its furniture” In
the apartment, there is an
refrigerator belonging to A. Is
the refrigerator to be included
in the sale of apartment unit?
3. A, an mechanical engineer
design the machines in the
building of B. The parties failed
to provide an amount of
professional fee to be paid to A.
How much is B bound to pay A?
Caparas, Jessner R.
1. Joan sold her house including
all the appliances to Grace. Can
Grace compel Joan to include
her cabinet?
2. If the terms of a contract are
clear and leave no doubt upon
the intention of the contracting
parties, the ___________ of its
stipulations shall control.
3. If the words appear to be
contrary to the evident
intention of the parties, the
___________ prevails over the
terms of contract
Buenaflor, Pia Josette S.
1. What is an interpretation of
contracts?
2. A is the owner of a big sugar
plantation. He gives B a power
of attorney which reads as
follows: “I hereby appoint B the
2. No, because it was clearly said Article 1372 Pg. 408
that only the furniture is included.
Refrigerator is an appliance and
distinct from furniture. Therefore,
it’s not included in sale.
3. In this case, the amount must be Article 1376 Pg. 411
determined by the rate customarily
paid in the place where the services
were rendered.
1. No, because Joan's cabinet is Article 1372 Pg. 408
distinct and different from
appliance.
2.Literal meaning Article 1370 Pg. 405
3. Intention of the parties Article 1370 Pg. 405
1. It is the determination of the Article 1370 Pg. 405
meaning of the terms or
words used by the parties in
their written contract. It is
the process ascertaining the
intention of the parties from
the written words contained
in the contract.
2. No, even if the power appears Article 1372 Pg. 408
very broad, he cannot sell because
sugar plantation and not the
ownership thereof.
manager of my sugar
plantation, with full power to do
any and all acts that he may
deem necessary and proper in
the premises.” Under this
authority, may B sell a portion
of the plantation?

3. What is a gratuitous 3. If the doubts refer to incidental Article 1378 Pg. 413
contract? circumstances of gratuitous
contract, such interpretation should
be made which would result in the
least transmission of rights and
interests.

Maaño, Crista Grace L.

1. S sold “all the animals” in his 1. No. B cannot take the claim for Article 1372 Pg. 408
farm to B. Then C, the friend of the reason that C’s animals do not
S, asked a favor to keep his belong to S. only those of S’s
horses and pigs. Does B have properties can be claimed.
the right to take claim on all
animals in S’s farm including the
stored animals by C? Why or
why not?

2. G has 3 cars. He sold one of 2. None. The sale should refer only Article 1372 Pg. 408
the cars to H indicating that he to the cars fully owned by G alone to
can choose any. His ownership make the contract effectual.
of the 2 cars are disputed and
the other car of which he is a
co-owner with I. I did not give
his consent to the sale. What
car is only H allowed to buy?

3. Pia gave her crown to
Catriona, however it can’t be
determined if Pia donated it or
just merely lent it to Catriona. If
you were asked to give your
interpretation according to
what you have learned, how
would you address the issue?
3. The contract must be interpreted Article 1378 Pg. 412-413
in such a way that which condition
transmits a lesser rights of the
ownership of the crown. Therefore,
it must be interpreted as a a lending
of an object or commodatum rather
than a donation.

Bosi, Rosel
1. If S sold his house including 1. S's washing machine should not Article 1372 Pg. 408
all the furniture therein, should be included in the purchase for it is
S's washing machine be distinct and different from furniture.
included in the purchase? How Same goes for the borrowed table,
about the table that S borrowed for it is not S's personal furniture.
from C?

2. Recite what is written under 2. In order to judge the intention of Article 1371 Pg.407
Article 1371. the contracting parties, their
contemporaneous and subsequent
acts shall be principally considered.

3. Fill in the blanks. If the 3. the greatest reciprocity of Article 1378 Pg. 413
contract in question is onerous, interests
the doubts should be
considered in favor of _______.

Faustino, Maria Joshie H.

1. True or False. If a word is 1. False. “…MOST in keeping with Article 1375 Pg. 410
susceptible of two or more nature and object of the contract…”
meanings, it is to be understood
in that sense which is least in
keeping with the nature and
object of the contract in line
with the cardinal rule that the
intention of the parties must
prevail.

2. S sold to B his horse, S has 2. Yes. The contract shall be null and Article 1379 Pg. 414
many horses. It cannot be void.
determined which horse was
intended by the parties to be
the subject of the sale. Is the
contract null and void?

3. Determination of the 3. Interpretation of a contract Article 1370 Pg. 405

meaning of the terms or words
used by the parties in their
written contract

Albaño, Jaicyl Anne

1. K gave his farm to G. it is
unclear if the contract is a
donation or a commodatum.
Should G assume that the farm
is donated to him?
1. No. Because if the doubt is Article 1378 Pg. 413
impossible to settle, the contract
should be presumed as a mere
commodatum because it would
transmit lesser rights.
2. M is an owner of a 2. No, as the employer, he has the Article 1373 Pg. 410
condominium unit. He right to fire T.
employed T as the unit’s
caretaker. They entered a
contract stating that T should
not lease the unit to anyone
and if he does so, he will pay P
60,000. T violated the
stipulation and leased it to a
family. Can M NOT fire T
because the stipulation only
indicated that T will only pay P
60,000?

3. M sold his car to R. Is the 3. No. The sale only refer to the car Article 1372 Pg. 408
spare tire in the trunk of the car itself.
part of the sale?

Santos, Meribe B.
1.Would result in the least
transmission of rights and
interest?
1. If the doubts refer to incidental Article 1378 Pg. 699
circumstances of a gratuitous
contract such interpretation should
be made.

2. ______is the determination 2. Interpretation of a contract. Article 1370 Pg. 405

of the meaning of the terms or
words used by the parties in
their written contract

3. N sold all her “outfits” to B. 3. No. The sale refers only to clothes, Article 1372 Pg. 408
Are makeup products included shoes, and other accessories that are
in the sale? included in N’s outfit.

Villadiego, Mark Anthony Q.

1.Can someone who got into an
insurance contract be able to
change the contents of it?
1. Insurance contracts are Article 1377 Pg. 694
considered contracts of adhesion.
Therefore, its contents are already
set and it is also a “take it or leave it”
contract.

2. Is there a contract made
when A sells a dog to B? A is an
owner of multiple breeds of
dogs.
2. No, contract is made because no Article 1372 Pg. 681
specifications were made by A. The
contract will only be made if A
stated that he will sell to B one of
the puppy Siberian Huskies.
3. When will the literal meaning 3. When the terms of the contract Article 1370 Pg. 664
of the contract be considered or are clear and leave no doubt.
used?

Alfajaro, Ma. Annaliza A.

1. H sold to J his house 1. Those that are not furniture and Article 1372 Pg. 408
"including all his furniture". not owned by H.
What are the things inside the
house that is excluded to be
sold to J?

2. True or False: A written 2. False. A written agreement Article 1377 Pg. 412
agreement shouldn't, in case of should, in case of doubt, be
doubt, be interpreted against interpreted against the party who
the party who has drawn it. has drawn it.

3. If the doubts are cast upon 3. No. The contract shall be null and Article 1378 Pg. 412
the principal object of the void.
contract in such a way that it
cannot be known what may
have been the intention or will
of the parties, is the contract
still valid?

Tecson, Harley L.
1. True or False. General Intent
prevails over Special intent.
1. False, because as a rule, where I a Article 1372 Pg. 408
contract there are general and
special provisions covering the same
subject matter, the latter control
over the former when the two
cannot stand together.

2. A, a plumber, fixed the water 2. The amount must be determined Article 1376 Pg. 411
system of B’s house. The parties by the rate customarily paid in the
however failed to provide the place.
amount A is to receive for
services he rendered. How
much is the compensation to be
paid?

3. In cases wherein stipulations 3. Effectual Article 1373 Pg. 409

of a contract may be
interpreted with several
meanings, It must be given an
interpretation that would
render it ______.
Bagacay, Cynthia Marie P.
1. Benedict has several cars. He 1. Null and void. Article 1378 Pg. 414
sold one car to John but it
cannot be determined which of
the cars was being sold.
Therefore, the contract is
________.

2. A sold to B his house 2. Yes, since A already paid that chair Article 1372 Pg. 408
"including all the furniture and to C, it belongs to A.
appliances therein." In the
house, there is a rice cooker
belonging to C which C agreed
to sell to A. A already paid the
rice cooker to C. Is the rice
cooker to be included in the
sale of the house?

3. A sold "his parcel of land" to 3. The land owned by him alone Article 1373 Pg. 409
B. Now, A has two lands, one
owned by him absolutely and
another land which he is a co-
owner with O. O did not give his
consent of sale. The sale of land
made by A refers to:

Azarcon, Shania Via D.

1. Fill in the blank. 1. Determination. As stated on the Article 1370 Pg. 405
Interpretation of a contract is Meaning of interpretation of
the __________ of the meaning contract
of the terms or words used by
the parties in their contract.

2. X has entered into a contract
with a fairly new insurance
company. When X has received
the insurance contract, he had a
hard time understanding the
contents of the contract due to
the obscure terms the company
used. He felt like the contract
does not show what the
insurance company claimed so
he seeked legal services in order
to interpret the contract. In the
2. The interpretation should be in X’s Article 1377 Pg. 411-412
favor. In interpreting, it shall not
favor the part ho have caused the
obscurity. The reason is that the
party who drafted the contract could
have prevented mistakes and
ambiguity by choosing words
carefully. Obscuring acts shows that
the party who drafted may have
ulterior motives.
interpretation, whose party may
the law favor? Why?

3. What is the act of making 3. A. As stated in interpretation and Article 1373 Pg. 661
intelligible that was not before reformation distinguished. (Taken
understood, ambiguous, or not from the
obvious PDF version
a. Interpretation of the
b. Reformation book)
c. Recreation
d. Novation

Rival, Mel Jobert

1. S sold B his wooden glass 1. No because under their Article 1372 Pg. 408
cabinet for Chinawares as well agreement, it is assumed that the
as all the spoons, knives and "plates" included in B's purchase are
plates inside. S did not realise dinner plates which are entirely
that he accidentally misplaced different from a license plate.
his license plate inside the
cabinet and asks B to give it
back. Has B the right to decline
S's request?

2. S sold B a portion his land for 2. P600 000 for it was the agreed Article 1370 Pg. 406
the amount of P600 000 and amount of both parties
there is no dispute about the
price.However stated in the
contract of sale that the price of
said land amounts to P500 000.
Which amount should be
followed?

3. S sold B his car. S has a G- 3. This makes the contract null and Article 1379 Pg. 414
wagon, an off-roader and a void.
regular blue van. It was not
identified what car is to be sold.
What is the effect on the
contract of sale?

Sipsip, Jamezel Anne S.

1. If C gave his bicycle to D, but
it cannot be determined
whether C donated it or merely
lent it, how does the contract
interpreted?
1. The contract should be Article 1378 Pg. 413
interpreted as commodatum
because it would transmit lesser
rights than a donation since C retains
his ownership of the bicycle.

2. If the words appear to be 2. The latter shall prevail over the Article 1370 Pg. 405
contrary to the evident former.
intention of the parties, what
would prevail?
3. Distinguished interpretation
from reformation.
Hernales, John Paul H.
1. B sold a car to X. B have two
cars, the one have incomplete
papers (O.R & C.R) and
therefore is not legally owned
by B, while the other one have
all the legal papers. What would
be the interpretation of the
contract?
2. Malou asked Paul, a graphic
artist, to create an invitation
design for the former’s
birthday. No stipulation on the
payment has been made. Later
on, Paul demands for the
payment but Malou argued that
the contract does not indicate
such stipulation. Is Paul entitled
to ask for payment? If yes, how
much?
3. In case where a contract of
adhesion contains obscure
words and stipulations, how
must it be interpreted?
3. Interpretation is the Article 1370 Pg. 405
determination of the meaning of the
words used by the parties in their
written contract.
Reformation is the remedy allowed
by law by means of which a written Article 1359 Pg. 396
instrument is amended or rectified
so as to express or conform to the
real agreement or intention of the
parties when by reason of mistake,
fraud, inequitable conduct or
accident, the instrument fails to
express such agreement or
intention.
1. This contract contains ambiguities Article 1373 Pg. 409
because B does not specify which car
is to be sold. However, the law
demands that the interpretation to
choose is the one that render the
contract effectual. In this case, the
car that is referred to, is the one that
have all the papers and that can be
legally transferred to X.
2. Paul is entitled for the payment, Article 1376 Pg. 411
although it has not been stipulated,
it must be assumed since he is a
graphic artist and therefore his
intention in entering the contract is
the payment for his service. The
payment that he should receive
must be determined by the rate
customarily paid in the place where
the service is rendered.
3. The contract must be interpreted Article 1377 Pg. 411
in a way that it does not favor the
party which caused the obscurity.
The justification of this is that, the
obscurity may have been intended
for an ulterior personal motive.
Rias, John Clark A.
1. James mortgaged his land to 1. No. Since it is stated that he didn't Article 1372 Page 681-
secure the debt of John to Jay, assume personal liability, James PDF
without expressly assuming can't be compelled to pay. Version
personal liability for the debt.
Can James be compelled to pay
remaining deficiency?

2. Can customs be used in 2. Yes. Article 1376 Page 692-

interpretation of ambiguities of PDF
contracts? Version

3. Samantha sold her house 3. No. It should be understood that Article 1372 Page 681-
'including all her furnitures'. The books are not furnitures and is PDF
buyer, who is Queen, demands therefore not included in the sale. Version
for the books inside the
bookshelf. Is Samantha liable to
give the books as part of the
sale?

Despabiladeras, Harvey M.
1. Zeno obtained from Nicholas 1. The repayment period should be Article 1378 Pg. 412
a loan of P250,000.00 which interpreted at 4 years because Zeno
bears interest at 1.05% per will have more time to use the
month. It cannot be money, while Nicholas will earn
determined, however, whether more interest.
the loan is payable in 3 years or
4 years. How should the
repayment period be
interpreted?

2 Cardo has several books. He 2. The contract of sale shall be null Article 1378 Pg. 412
sold one book to Luis but it and void.
cannot be determined which of
the books was being sold. How
it should be interpreted?

3. If Katrina gave his laptop to
Maria, but it cannot be
determined whether Katrina
donated it or merely lent it.
How it should be interpreted?
3. The contract should be Article 1378 Pg. 412
interpreted as commadatum rather
than donation because
commodatum transmit lesser rights
the ownership of the laptop being
retained by Katrina.
Cajanding, Jomer P. Answers Article Page No.
1. It is error on the part of the 1. First duty of court Article 1370 Pg.666
court to make room for (pdf)
interpretation or construction
of the provisions of a contract
when the case plainly calls for
application thereof.

2. It is to be presumed that 2. Terms presumed to embody will Article 1370 Pg.665

every contracting party knows of parties (pdf)
the contents of the contract
before he signs and delivers it
and that the words used
embody the will of the parties.

3. It is a cardinal rule that in 3. Intent of law Chapter 5 Pg.

seeking the meaning of the law, 662(pdf)
the first concern of the court
should be to discover in its
provisions the intent of the
lawmaker

Operio, Shiela Mae C.

1. When the words and clauses 1. No. The intention does not need Article 1370 Pg. 406
of a written contract are not in to prevail since there is no conflict.
conflict with the manifest
intention, should the intention
of the contract still prevail?

2. G gave K a gold ring. In the
contract, it is not clear if the
ring was a donation. K was
eager to get the gold ring, so he
assumed that G donated it to
him. Is K right in this situation?
2. No. If the doubt refers to Article 1378 Pg. 413
incidental circumstances of a
gratuitous contract, such
interpretation should be made
which would result in the least
transmission of right and interests.

3. H is from Manila, his rate for 3. No. The price should be based Article 1376 Pg. 411
his carpentry job in the city is from the custom of the place where
usually 10,000. L ordered him to the barn was built.
make a build a barn in Tagaytay.
The contract did not stipulate
for the price of construction.
Should the price be 10,000?
Guong, Angela Nhycole
1.X and Y promised to buy and 1. If the principal object cannot be Article 1378 Pg. 700 (De
sell a computer. However, Y has determined, the contract is void or Leon, pdf
a lot of computers and it is inexistent. version)
impossible to determine the
principal object of the contract.
What will happen to the
contract of X and Y?

2. D sold his house to B. In the 2. the house that is not owned by Article 1373 Pg. 683 (De
contract, it is not written what his relative will make the contract Leon, pdf
house is sold since D has three effectual. version)
houses, where two of it are
owned also by his relative.
Which will render the contract
effectual?

3. R and E entered into a 3. the contract is a contract of sale Article 1375 Pg. 689
contract of sale, however the since based on the actions of the
contract refers to R as donor contracting they intended to make E
and E as donee. Before the date the owner of the land
of contract, E offers to buy the
land of R which the latter
agreed to. Is the contract a
donation or a sale?

Manlapig, Gabrielle Joy Y.

1. Give a summary of Article
1370. (Hint: It is the first article
stated in Chapter 5,
Interpretation of Contracts.)
1. This article addresses the order in Article 1370 Pg. 405
which one must interpret the
contract. If the terms of the contract
are clear and leave no doubt of the
intentions of the contract, then its
literal meaning shall control.
However, if the words seem contrary
to the intention, the intention
prevails over the words.
2. Complete the sentence: “If 2. Same Meaning and Effectual. Article 1373 Pg. 409
some stipulation should admit
of s______ m______, it shall be
understood as bearing that
import which is most adequate
to render it e_______.

3. Which prevails over the 3. Special intent. Referring to some Article 1372 Pg. 408
other? Special intent or general general matter indicates that the
intent? parties may not have particular
matters in mind.

Transfiguracion, Cayla Mae L.

1. S sold his parcel of land to B 1. The intention of the parties is Article 1370 Pg. 406
for 1,000,000. However, the clearly for 1,000,000 so it should
contract states that the prevail.
purchase is only for 100,000.
How is this interpreted?

2. S sold his “car” to B. 2. The car owned by S alone. Article 1372 Pg. 409
However, S has two cars in
which the other one is co-
owned by his brother, C. C
didn’t give consent. Which of
the car should be given to B?

3. D borrowed P10,000 from C.
It is written that D should pay
6% interest. However, it is not
stated whether the debt is
payable within 1 year or 2 years.
How should this be interpreted?
3. It is assumed that the agreement Article 1378 Pg. 413
is for 2 years because in that way,
both the parties will benefit. D could
use the money for 2 years and C
would earn interest for 2 years.

Dela Cruz, Paul Vincent

1. If X is an American who 1. Cavite Article 1376 Pg. 411
rendered service to Y in Cavite.
Where must be the custom be
based from if the amount for
the service is not stated in the
contract?
a. USA
b. Cavite

2. True or false. The intention 2. False. It must be “their will has the Article 1370 Pg. 406
prevails over terms of contract force of law…”
because their will has the force
of civil obligation between
them.
3. D sold his apartment 3. Yes, since the air conditioner is Article 1370 Pg. 405
“including all the appliances included in the stipulation of the
therein” to C. Is D’s air parties.
conditioner included in the
sale?

Alfelor, Edmar Angelo D.

1. If the words appear to be 1. D. the latter shall prevail over the Article 1370 Pg. 402
contrary to the evident former
intention of the parties,
a. the former shall prevail
over the latter
b. there shall be no
meeting of the minds
c. the contract is defective,
therefore subject to rescission
d. the latter shall prevail
over the former

2. A sold a crate of wine to B 2. 50,000 shall be the prevailing Article 1370 Pg. 406
amounting to 50,000. However, price for it is the intention of the
the crate originally costs 20,000 contract of sale
only. What price should prevail
for the sale of crate?

3. True or False — Usage or
custom is admissible to
supersede or vary the plain
terms of the contract due to its
ambiguity
3. False. Usage or custom is not Article 1376 Pg. 411
admissible to supersede or vary the
plain terms of the contract