ACTIVITY 2:

SELF-ASSESSMENT: HONESTY IS THE BEST POLICY!

How much do you remember? (THESE WERE DISCUSSED IN OBLIGATIONS AND CONTRACTS)
Direction: Without first using any dictionary or your textbook in obligations and contracts nor this
reading
material, give the definition or give meaning of the terms enumerated below. Write your answers on
your
booklet.
1. Contract- A contract is a legally binding document that recognizes and
governs the rights and duties of the parties to the agreement. A contract is
legally enforceable because it meets the requirements and approval of the
law. A contract typically involves the exchange of goods, service, money, or
promise of any of those. "Breach of contract", means that the law will have to
award the injured party either the access to legal remedies such
as damages or cancellation.
In the Anglo-American common law, formation of a contract generally requires
an offer, acceptance, consideration, and mutual intent to be bound. Each
party must be those who are binding by the contract. Although most oral
contracts are binding, some types of contracts may require formalities such as
being in writing or by deed.

2. Obligations - an
act or course of action to which a person is morally or legally
bound; a duty or commitment.

3. Fungible goods- are

items that are interchangeable because they are identical to
each other for practical purposes.

4. Suspensive condition - A suspensive

condition is a condition which suspends
rights and obligations (or the validity of the entire contract) until a certain
future event occurs. Upon the occurrence of the event, the suspended part of
the contract (or indeed the entire contract) is brought to life.

5. Resolutory condition- Resolutory

condition refers to a condition whereby, upon
fulfillment terminates an already enforceable obligation. It also entitles the
parties to be resorted to their original positions.

6. Necessaries- Persons
incapable of making contracts generally, may,
nevertheless, make legal engagements for necessaries for which they, or
those bound to support them