Modified True or False BIV T1 C1

1 Relationships between people are governed purely by the Civil Code.

2 Obligations are created only by law or by the agreement of parties.
3 Quasi- is a term meaning “similar to”.
4 Real obligations are those which are not imaginative or fictitious.
5 Personal Obligations refer to those that affect the persons of the parties.
6 Sources of obligations are the circumstances when obligations are made.
7 Obligations must be in writing to be provable.
8 Juridical necessity means that the parties can be compelled by courts in the instances where such is needed
9 Solutio Idebti is the case when payment is received when it is not yet due.
10 Delicts are essentially crimes committed by a party or parties.
11 Contracts created by parties are equal to laws between the parties.
12 In cases where the law prohibits something, contracts cannot be created to allow the same.
13 An intentionally created accident gives rise to quasi-delict.
14 The instance when one takes care of a stray dog is an instance of quasi-contract.
15 Taking care of a thing until the owner who misplaced the thing is an instance of quasi-contract.
16 Damages can refer to the injury sustained by a party or the compensation for the same.
17 All injuries need to be proved in order for a party to be entitled to damages.

Enumerations/Definitions BIV T1 C1
1 An obligation is a juridical necessity to give to do or not to do.
2 Elements of an obligation is Subjects (passive and Active), Object and Juridical Tie.
3 Kinds of obligation as to subject matter are real and personal obligations.
4 Real Obligations are obligations to give while personal obligations are obligatins to do or not to do.
5 Sources of obligations are Law, Contracts, Quasi-Contracts, Delicts and Quasi-delicts
6 The kinds of quasi Contracts are solutio indebiti and Negotiorium Gestio
7 Moral Damages are conpensation for besmirched reputations, hurt feelings and metal anxiety.
8 Exmplary Damages are damages awarded over and above normal damages to set an example
9 Requisites of Quasi-Delicts are:
* There must be an act or ommission *There must be a direct relationship between the act or ommission
*There must be fault or negligence and the damages caused.
* There must be damages caused *There is no pre-existing contractual agreements between the parti
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or not to do.

l anxiety.
example

een the act or ommission

ements between the parties.

 Modified True or False BIV T1 C2

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Enumerations/Definitions BIV T1 C2
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Problem Solving BIV T1 C2

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 Modified True or False BIV T1 C2

In a real obligation, a debtor is required to take care of the thing with the diligence of a good father of a
family.
Ordinary diligence is the level of diligence generally exercised by a common person.
Money, being an artificial construct, cannot be considered a fruit of an object.
In a contract to deliver a specific object, it also carries with it the obligation to deliver the fruits of the specific
object.
A person who is not in possession of a thing can only exercise a personal right over the same.
In an obligation to do something, in case the debtor does not comply, the creditor can ask the court to
compel the debtor to fulfill is obligation.
An object not agreed upon is considered to be generic.
Specific objects are those which have been specifically identified or physically segregated for the creditor.
Something poorly done to the best of the ability of a debtor is not considered to be a breach of an obligation.
When the due date has passed and the obligor has not complied with his obligation, he shall be considered in
delay as provided by law.
Parties can agree that in the event either party commits an act of fraud against each other, the other party
will not be able to collect damage.
A person who counts his money in public is considered to be negligent.
In all obligations to deliver a thing, loss of the thing due excuses the obligor from making delivery of the thing.
In an obligation, a creditor cannot be in delay.
Fraud that was used to induce a party to enter into a contract is called incidental fraud.
A person who is in delay is conclusively presumed to be liable for fortuitous events.
Negligence and Fraud are the same in that they are both reasons why creditor can claim for damages.
Fraud may or may not be intentional.
Rights arising from obligations are transmissible.
Usurious contracts are against law and hence are void.
In an obligation to deliver a specific thing, the diligence required from the creditor is the diligence of a good
father of a family.
Rights created by contract are generally personal and cannot be assigned to third parties.
Ordinary fortuitous events are those which can be reasonably foreseen and as such will not excuse the
debtor in case the thing is lost due to the said event.
Delay, whether ordinary or legal, entitles the creditor to damages.
A debtor in an obligation to render a service who is in breach of his obligation cannot be forced to comply
with his obligation by the court.

Enumerations/Definitions BIV T1 C2
Kinds of obligations as to object are Spicific/Determinate and Generic/Indeterminate
Diligence required by stipulation or law and in its absence, the diligence of a good father of a family.
Ordinary diligence is the diligence an ordinary person exercises in his own affairs.
The kinds of Fruits are natural, industrial and legal fruits
Personal rights is the right to demand for something, real rights are rights that can be enforced even to third persons.
Breaches of obligations are failure to comply with the terms of the obligations.
The kinds of fruad are incidental fraud and causal fraud
The kinds of negligence are cupla contractual and culpa aquilana
The nature of the contract and the circumstances of time, place and person determines degree of negligence.
The kinds of delay are mora solvendi, mora accipiendi and compensatio morae
Demand is not necessary when the law or contract states so, when time is of the essence and when demand would be useless
Fortuitous events are events which are unforeseen or if foreseen is inevitable.
Requisites to extinguish an obligation by fortuitous events are as follows:
* The event must be independent of human will, or at least the will of the debtor.
*The event could not be foreseen or if foreseen was inevitable
* The fortuitous event must have affected the obligation in such a way that the obligation could no longer be complied with
* The debtor must be free from any participation that aggravated the injury or loss
The two kinds of presumptions are Conclusive Presumptions and Disputable Presumptions.
Rights are not transmissible when the law or the contract states that it is not transmissible.
Damages can be asked when there is fraud, negligence, delay or any contravention of the terms of the obligation.

Problem Solving BIV T1 C2

Mario is not correct. The obligation is generic so the phone Jose was using may not be the phone promised to Mario.
Peter is correct. Waiver of future fraud is void.
No. Ayee is not liable. James cannot have any real right over the puppies until it is delivered to him.
Yes. All the requisites of fortuitouos event is present in the loss of the car.
Yes. Mario promised to deliver a generic car and the loss of his car does not extinguish his obligation to Jose.
Yes, the obligation is for a generic object which is not extinguished by fortuitous events.
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y.

n to third persons.
negligence.

n demand would be useless

longer be complied with

the obligation.

promised to Mario.

m.

n to Jose.
 Modified True or False BIV T1 C3 S1-S2

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Enumerations/Definitions BIV T1 C3 S1-S2

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Problem Solving BIV T1 C3 S1-S2

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 Modified True or False BIV T1 C3 S1-S2

A pure obligation can be subject to a time frame within which to accomplish the obligation.
A condition is always a future event the results of which cannot be known by the parties.
An obligation to pay a sum of money if La Salle, the strongest team in the league, wins the championship is a
valid conditional obligation.
An obligation to pay a sum of money if it rains next year is a conditional obligation.
An obligation to pay a sum of money if it rains next week is a conditional obligation.
If Jose promises to paint Mario’s house if Jose is not late tomorrow is a valid conditional obligation.
A period in an obligation must always be a future event.
A period in an obligation set must specify the date to be valid.
Suspensive period or conditions suspends the validity or extinguishment of an obligation.
Resolutory obligations are demandable at once.
Pure obligation are demandable at once.
It is possible to have a pure obligation subject to a period.
In an obligation to give a specific thing subject to a suspensive condition, any improvements, loss or
deterioration to the object is bourne by the obligee.
There is very little difference between a period and a condition.
Pure obligations are the simplest types of obligations.
An obligation to pay when the debtor has money is uncertain and thus not valid.
Not all potestative conditions are void conditions.
Impossible conditions are not valid conditions.
Fulfillment of conditions cannot be dependent on the will of the debtor.
An obligation to pay the creditor when the debtor feels like paying the obligation is void.
A obligation to pay when the sun rises tomorrow is absurd and is thus void.
An obligation entered into by Jose to pay a sum of money to Joy if Joy will let Jose copy her answers in an
examination is valid.
All obligations must have a specific name to be valid.
It is possible for an obligation to be subject to a period and a condition.

Enumerations/Definitions BIV T1 C3 S1-S2

The primary kinds of obligations under the laws of obligations are:
1) Pure and Conditional Obligations 4) Alternative and Facultative Obligations
2) Obligations with a Period 5) Divisible and Indivisible Obligations
3) Joint and Solidary Obligations 6) Obligations with a Penal Clause
A condition is a future uncertain event or a past event unknown to the parties which gives rise to or extinguishes an obligation
A period is a future certain event which gives rise to or extinguishes an obligation.
There are two kinds of conditions, resolutory conditions and suspensive conditions
Pure Obligations and obligations with a resolutory condition or period are demandable at once.
The kinds of conditions as to effect are resolutory conditions and suspensive conditions.
The kinds of conditions as to form are express conditions and implied conditions.
The kinds of condition as to cause or origin are Potestative Conditions, Casual Conditions and Mixed Conditions
The void conditions are those which are impossible or are contrary to law, good customs and public policy.
In obligations to deliver a specific thing the following rules apply to loss, deterioration or improvement of the thing:
a) Loss without the fault of the debtor, the obligation is extinguished
b) Loss with the fault of the debtor, the debtor shall be liable for damages
c) Deterioration without the fault fo the debtor, creditor bears the loss
d) Deterioration with the fault of the debtor, creditor can choose specific performance or rescind the obligation in both cases
debtor is liable for damages
e) Improvement by nature or age, the benefit shall inure to the benefit of the creditor.
f) Improvement through the debtor's efforts, the benefit shall inure to the creditor with no obligation to refund cost of debtor
Benefit of the period is presumed to be for the benefit of both parties.
Debtor shall lose the benefit of the period as provided for in Art. 1198 (short cut answer. In exams list down the circumstance
An event is deemed to have not happened if the period passes without the event happening or it becomes indubitable that th
event will not happen during the said period.
Court can fix a period to the obligation if from the nature and circumstances of the obligation it can be inferred that a period w
intended by the parties or when the determination of the period is left to the will of the debtor.
In obligations where both parties are at fault, the liability of the first infractor shall be reduced by the liability of the second
infractor. In the event it cannot be determined who was the first infrator, each shall bear their own losses.

Problem Solving BIV T1 C3 S1-S2

No. Gavin is not yet in delay has Trichie had made no demand as of yet.
No. Jeremy cannot sue Bobby since the condition must have been fulfilled within a reasonable time from the obligation.
Yes, the sickness of the dog is a case of fortuitous event and the acts of Anton does not indicate he was at fault.
No. Mita is not entitiled to the puppies because the obligation had been extinguished before Mita can gain rights over the pup
As Judge I would rule that Dana and Honeybee bear their own losses since it cannot be determined who among them delivere
their obligation first. While the act of buying appears to indicate intent, until the obligation is done no damage can accrue.
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r extinguishes an obligation

d Conditions
c policy.
ment of the thing:
he obligation in both cases

tion to refund cost of debtor.

list down the circumstances)

ecomes indubitable that the

n be inferred that a period was

he liability of the second

n losses.

e from the obligation.

was at fault.
can gain rights over the puppies.
who among them delivered
no damage can accrue.
 Modified True or False BIV T1 C3 S3-S6

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Enumerations/Definitions BIV T1 C3 S3-S6

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Problem Solving BIV T1 C3 S3-S6

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 Modified True or False BIV T1 C3 S3-S6

In alternative obligations, one promises to deliver a thing to the other with the option to choose another
object instead of what was promised.
In alternative obligations, the right to choose what to deliver to the other belongs to the one giving the
object.
A creditor may demand delivery of an item in an alternative obligation only if it is the last remaining items
from the alternative items.
Loss of one of the things due to fortuitous events in an alternative obligation shall extinguish the obligation.
In facultative obligations, loss of the thing due to fortuitous events before substitution is made extinguishes
the obligation
If a debtor is unable to make a choice in alternative obligations because of the acts of the creditor, debtor
may rescind the contract.
If A and B promised to pay Y and Z P20,000, the obligation is considered to be a joint obligation.
If a joint debtor cannot pay his share in the obligation, the other debtors can be made liable for the share of
the defaulting joint debtor.
Joint and solidary obligations presupposes multiple subjects.
If A and B promises to deliver the Z a specific car, the obligation is solidary.
Solidary debtors may not be bound by separate conditions or periods.
In solidary obligations, a solidary debtor cannot be held liable for the entire obligation.
If a solidary creditor forgives the debt to a joint creditor, the entire obligation is considered extinguished.
A solidary debtor who pays the entire amount can ask for reimbursement from his co-debtors in the
obligation.
In indivisible obligations with multiple debtors, the obligation is considered to be solidary.
In case of default by joint debtors in an indivisible obligation, default of one means everyone needs to be
sued for the obligation.
If a student enrolls for one term in DLSU, the student’s obligation is considered divisible.
A promise to pay P50,000 on Sunday is considered to be indivisible.
Obligations with a penal clause is nothing more than an alternative obligation.
In cases of obligations with a penal clause, the creditor cannot normally ask for damages in case of breach of
the obligation.
Penal clauses are examples of liquidated damages.
In case of obligations with a penal clause, creditor must prove he sustained damages in the breach of the
obligation to entitle him to the penalty.
An immoral penalty in an obligation to pay makes the obligation void.
An immoral obligation with a penalty to pay P5,000 in case of default is not allowed by law.
An alternative obligation may also be subject to a penal clause.

Enumerations/Definitions BIV T1 C3 S3-S6

Alternative obligations are obligations with multiple objects agreed upon but delivery of one of them extinguishes the obligati
Facultative obligations are obligations to deliver a thing but grants the debtor the right to substitute another object instead.
Joint obligations are obligations with multiple parties in the obligation but each party is responsible only for their respective pa
the obligation
Solidary obligations are obligations with multiple parties but any one of the multiple parties may be held liable to pay or can
demand for the payment.
Obligations can only be considered solidary if the obligation expressly provides solidarity among the parties.
The defenses available to the solidary parties are personal defenses, defenses due to the nature of the obligation and defense
pertaining to the share of the other solidary debtors.
Divisible obligations are obligations that can be performed in parts.
Indivisible obligations are obligations that cannot be performed in parts.
The kinds of indivisibility are natural, conventional and legal indivisibility.
Obligations with a penal clause are obligations where the damages have been previously agreed upon by the parties.

Problem Solving BIV T1 C3 S3-S6

The obligations is a joint, alternative, indivisible obligation with a period and a penal clause.
No. Jan and Joe's obligation is to deliver on the 10th and cannot be made liable earlier than the said date.
Joe cannot be held liable for delay because the obligation is joint and he is only responsible for his share in the obligation.
No. David cannot be forced to accept partial or irregular payment by a joint debtor.
No. Demand on one of the joint debtors is sufficient for legal delay to occur.
The obligation is indivisible because while the object was physically divisible, the intents of the parties was the delivery of a ca
Yes, in obligations with a penal clause, damage is not necessary for the debtors to be made liable for the penalty.
Yes. The stipulations of the parties clearly indicate that the penalty is over and above the object of the contract.
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m extinguishes the obligation.

e another object instead.
only for their respective part in

e held liable to pay or can

e parties.
 the obligation and defenses

pon by the parties.

d date.
share in the obligation.

ties was the delivery of a case.

or the penalty.
the contract.
 Modified True or False BIV T1 C4 S1

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Enumerations/Definitions BIV T1 C4 S1
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Problem Solving BIV T1 C4 S1

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 Modified True or False BIV T1 C4 S1

In case the obligation is silent, payment shall be made at the domicile of the creditor.
While the creditor can refuse partial payment, debtor may be required to make partial payments.
In Dacion en Pago, the creditor may not sell the property he receives in payment of his receivable.
In Application of Payment, a debt of 10,000 with 2% interest per month is more onerous than a debt of 5,000
with a 4% interest per month.
A debtor who pays a third person is valid if he believed that the third person was authorized to receive the
payment for the creditor.
A third party may not pay an obligation without the consent of the creditor.
Costs of paying is bourn by the creditor.
If A third party who pays an obligation with no intention to be paid back extinguishes the obligation by
condonation.
In Cession, the creditor may keep the property delivered to him in payment of his receivable.
Payment can be validly made by the debtor wherever he may find the creditor.
Refusal to receive payment by the creditor always gives the debtor the right to pay by consignation.
Payment in another currency is valid if the debtor agrees to it.
A creditor who accepts partial payment from the debtor without protest, cannot use the partial payment as
grounds to claim for damages.
Substitution allows the third party who paid the obligation to acquire all the rights of the former creditor.
Payment made by a third person who has no intention to be reimbursed will extinguish the obligation if
accepted by the creditor.
A party who pays with another person’s property cannot extinguish his obligation.
Valid payment requires that the payment must be made to the creditor.
Payment to an incapacitated person will be valid if the said person kept the money that was paid.
Payment in good faith to a person who has the debtor’s evidence of indebtedness does not necessarily
extinguish the obligation of the debtor.
When the court orders the debtor not to make payment, debtor may still opt to pay the creditor, although
such payment will not be deemed valid.
In an obligation to give a thing, the quality of the thing to be delivered shall depend on the sole discretion of
the debtor.
A creditor who is unable to pay what has been agreed upon may make payment nonetheless by delivering
another object in substitution.
Payment by the debtor who issued a check extinguishes the obligation.
Inflation or deflation of currency cannot not affect the payment of an obligation.
Application of payment happens when several creditors have debts which are due and the debtor does not
have sufficient cash to pay all debts.
A debtor who is confused as to who is entitled to get paid from 2 or more seemingly valid claimants, may opt
to pay via consignation.
Payment to a minor creditor can only be made via consignation.
Consignation is a judicial action.
Once delivery of the payment to court is made, it cannot be withdrawn
Dacion en pago is nothing more than novation of the obligation

Enumerations/Definitions BIV T1 C4 S1
Obligations are extinguished by
a) Payment d) Compensation
b) Loss of the thing due e) Confusion
c) Condonation f) Novation
Payment to be valid must be paid by the right person to the right person at the right time and the right place in the right curre
Payment does not only mean delivery of money but may also include the performance, in any other manner, of an obligation.
Subrogation occurs when a 3rd person pays an obligation with the consent of the debtor and when the law so provides.
Substitution occurs when a 3rd person pays and obligation without the knowledge or consent of the debtor.
Benefit to creditor is presumed in the instances provided in Art. 1241 2nd paragraph (Shortcut answer list down in real exams
The special forms of payment are consignation, dacion en pago, cession en pago and application of payments
Dacion en pago is a special form of payment where property is used to pay a money obligation.
Cession is a special form of payment where the debtor cedes his property rights to all his/her creditors to for them to sell it an
the proceeds of such sale to pay for the obligations of the debtor
Legal tender is the currency by which the debtor can force the creditor to accept payment
Application of payment takes place when a debtor has multiple debts of the same kind with one creditor, pays an amount not
sufficient to pay off all debts and the debtor did not indicate which debt is being paid first.
The requisites for application of payment to happen are as follows:
a) There must be only one debtor and one creditor d) The debt where payment can be applied is all due
b) There must be two or more debts e) The payment was not enough to cover all the debts.
c) The debts must be of the same kind
The requisites for application cession en pago are as follows:
a) There must be two or more creditors c) The assignment must involve all the assets of the debtor
b) The debtor must be insolvent d) The cession must be accepted by all the creditors
Consignation is a special form of payment where because of the unjust refusal by the creditor to accept payment, debtor deliv
to the court the payment and asks the court to declare the obligation extinguished.
Debtor may opt to pay by consignation under Art. 1256 (Short cut answer. In real exams you must list down the instances)
Requisites of consignation is enumerated in Slide 33 (Short cut answer. In real exams you must list down the requisites.

Problem Solving BIV T1 C4 S1

Yes. Philip cannot be forced to accept a payment different from what was agreed upon.
Yes. Dacion en pago can only take place if the creditor accepts the payment. Kit cannot be forced to accept a different object.
No. In generic obligations, debtor cannot demand an object of superior quality.
No. Tony cannot deliver an object of such quality that was clearly not what was intended. What was intended was a phone th
can access messenger messages, hence at least a smart phone.
As judge, I will ask that a medium quality smart phone be delivered to Philip by Tony or ask that the same be delivered to Phili
and the cost shall be charged to Tony.
No. Application of payment will not apply because the obligations were of different kinds.
The payment should have been applied to the money obligations.
This was a case of substantial compliance in good faith. As judge I would rule as if there was compliance but the amount that
would be due to Julia will be reduced but the value of the vest.
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ight place in the right currency.
r manner, of an obligation.
the law so provides.
e debtor.
wer list down in real exams)
payments

tors to for them to sell it and use

editor, pays an amount not

ed is all due
r all the debts.

sets of the debtor

he creditors
cept payment, debtor delivers

ist down the instances)

down the requisites.

o accept a different object.

as intended was a phone that

e same be delivered to Philip

iance but the amount that

 Modified True or False BIV T1 C4 S2-S6

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Enumerations/Definitions BIV T1 C4 S2-S6

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Problem Solving BIV T1 C4 S2-S6

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 Modified True or False BIV T1 C4 S2-S6

Loss of the thing due will always extinguish an obligation provided the debtor was not at fault or in delay.
If a thing is only damaged, it can still be considered lost
If the location of the thing is known, the thing cannot be considered lost.
If a thing is lost in the possession of the debtor, the loss cannot be presumed to have been lost with the fault
of the debtor because of presumption of innocence unless proven otherwise.
Loss of the thing during a calamity is presumed to be with the fault of the debtor unless proven otherwise.
If a thing is lost by fortuitous event, creditor can no longer run after any other person to ask for damages or
recover what was lost.
Condonation is extinguishing an obligation by donation.
Because condonation is made by condoning the obligation, it must always be expressly made.
If a person to whom a check is delivered tears the check, it is considered an act of condonation.
Condonation must be accepted by the debtor to be valid.
Confusion occurs when parties cannot ascertain the nature of the obligation which extinguishes the
obligation.
Confusion occurs when a party is both debtor and creditor in the same obligation.
Confusion occurs when a party is both a debtor and creditor in an obligation.
Confusion in one party of a joint obligation cannot extinguish an obligation.
Compensation normally occurs when two people owe each other .
Compensation must always be total to extinguish an obligation.
Compensation may be partial.
Criminal liability can be offset by a debtor with an existing debt owed by the victim to the offender.
Debts which are not yet due cannot normally be the subjected to compensation
An object in a contract deposit cannot be subjected to compensation by the person in possession of the
object.
Objects of a voidable contract cannot be subjected to compensation by the parties because the contract can
be annulled.
An obligation to support cannot be compensated for a debt.
Compensation can be subjected to application of payment.
Novation is a two stage extinguishment. Creation of an obligation and extinguishing the old obligation.
Subrogation is an example of novation.
Rescissible obligations cannot be novated.
An obligation cannot be impliedly novated by the parties.
Novation of the contract needs the consent of both parties for it to extinguish an obligation.
Void obligations cannot be novated.
A void obligation cannot be used to extinguish a valid obligation.

Enumerations/Definitions BIV T1 C4 S2-S6

Requisites for loss of the thing due to extinguish an obligation are:
a) The obligation is to deliver a specific thing c) The debtor is not guilty of delay
b) The loss of the thing occurred withoout the fault of the debtor
The kinds of impossibility are Physical Impossibility and Legal Impossibilty.
Condonation is the gratuitous waiver by the creditor of his rights against the debtor.
The requisites of condonation are:
a) It must be gratuitous d) It must not be inofficious
b) It must be accepted by the debtor e) If made expressly, it must comply with the forms of donation.
c) The parties must have capacity
The kinds of condonation as to effectivity are Inter Vivos and Mortis Causa
Confusion is the extinguishment of an obligation where the personality of both debtor and creditor in the same obligation is
merged in the same person.
The requisites for confusion are as follows:
a) It must take place between the principal debtor and creditor c) It must be complete and definite
b) It must take place in the same obligation
Compensation shall take place when two person, in their own right, are creditor and debtors of each other.
The kinds of compensation as to cause or origin are as follows:
a) Legal c) Judicial
b) Voluntary d) Facultative
Requisites for compensation is stated in Art. 1279 (Shortcut answer. In a real exam the requisites need to be listed down)
Compensation cannot be set up in the following cases:
a) Obligations arising from a contract of depositum c) Obligation for support due by gratuitous title
b) Obligations arising as bailee in commodatum
Novation is the extinguishment of an obligation with a new obligation
Novation occurs when an obligation is modified in the following manner:
a) The object or principal condition has been changed. c) Subrogation of a third party to the rights of the creditor
b) Substituing the person of the debtor
The kinds of novation as to subject are Real or objective, Personal or subjective and Mixed.
The kinds of personal novation are substitution and subrogation.
The kinds of substituion of debtors are expromission and delegacion
Legal subrogation is presumed under Art. 1302 (Shortcut answer. In an exam the items must be listed)

Problem Solving BIV T1 C4 S2-S6

No. Obligation is not yet extinguished. Check payment does not produce the effect of payment until the same is encashed.
Yes. At this point, had Mike wished it, he could have set up compensation to extinguish the concurring debts with Daniel
In this case, the obligation of Daniel was entinguished by Confusion since he became principal debtor and creditor in the check
No. In this case no offer of payment has yet been made to Monmon since he was not present to receive payment
No. Novation can only take place with the consent of Monmon. There is no consent given nor was Monmon even asked.
No. The obligation still stands given that no payment has yet been made.
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elay
 ms of donation.

in the same obligation is

ite

ch other.

need to be listed down)

by gratuitous title

o the rights of the creditor

ted)

til the same is encashed.

ring debts with Daniel
or and creditor in the check.
eceive payment
Monmon even asked.
 Modified True or False BIV T2 C1-C2 S1-S3

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Enumerations/Definitions BIV T2 C1-C2 S1-S3

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Problem Solving BIV T2 C1-C2 S1-S3

1a
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3a

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 Modified True or False BIV T2 C1-C2 S1-S3

The creation of contracts requires at least 2 people to be valid.

In contracts, the parties can agree on anything and everything under the sun.
All contract are required to be named and identified to determine which rules will apply to the specific
contract.
The parties can agree on how the determination of the performance of the contract provided it is not
determined by either of them.
Contracts are personal agreements that binds only the parties in the contract and does not extend to other
people.
Contract that are valid but which defrauds other creditors may be questioned by the other creditors.
Contracts does not have to be in writing to be valid.
Persons who convinces a party not to comply with their obligations in a contract are as liable as the party
who breaks their obligations.
Real contracts are contracts which actually exist.
A person cannot enter into a contract in the name of another person unless he or she is authorized to do so.
Consent is exhibited when an offer made by a party is accepted by another.
A contract cannot be created from an offer which is uncertain.
A qualified acceptance of an offer is nothing more than another offer made by the other party.
A person who offers something to another, the other party will determine how, when and where the offer
will be accepted in order for a contract to be created.
An offer accepted by a person seconds before the offeror dies creates a valid contract.
Option contracts are contracts separate and distinct from the contract the parties want to create.
Earnest money is a partial payment on a perfected contract.
Offers made via TV home shopping programs are perfected upon acceptance by the buyers.
Minors who are emancipated still cannot give consent to a contract.
Insane or demented persons can never give their consent to create a contract
As a general rule, mistakes in the identity of one of the parties to a contract vitiates the consent of the party
who was mistaken.
In case an illiterate person claims fraud, the fraud must be still be proven by the person who claims there was
fraud.
An offer made on an “as-in, where-is” basis can vitiate consent if the item has a defect after it is purchased.
Mutual error that resulted in the failure of the parties to understand what it was they were entering into may
vitiate consent.
Shooting in the air and then pointing the gun on a person to sign a contract is an example of violence that
vitiates consent.
A threat to infect a person with asthma if they do not sign a contract is a case of intimidation.
A 5 foot tall girl cannot intimidate a 7 foot varsity player into entering into a contract.
A threat to sue if a party fails to enter into a contract is intimidation.
Violence employed by a third party to force a person to enter into a contract with another still vitiates the
consent in that contract.
Influencing a person into entering into a contract is undue influence.
Fraud that was perpetrated to induce a party to enter into a contract is causal fraud.
Fraud that is not part of a contract is not causal but only incidental.
Failure to disclose facts in the creation of a contract constitutes as fraud and will vitiate consent.
Exaggeration made by a salesman constitutes as fraud that can vitiate consent.
Third parties who misinterpreted the terms of the contract that the parties had entered into vitiates the
consent of the parties to that contract.
Testimonials of successes by customers are not incidents of fraud that can vitiate consent.
Incidental fraud cannot vitiate consent, it can only entitles the innocent party to damages.
Simulated contracts are contracts that are fake and do not exist.
Relative simulation of contracts do not bind parties to the apparent contract they had apparently entered
into.
Relatively simulated contracts entered into contrary to law, morals, good customs, public order or policy are
void and will bind the parties to what they originally intend to be bound with.
Objects of contracts must be physically existing to be valid.
Rights may be a valid object to a contract.
All kinds of service may be a valid object to a contract.
Unlike obligations, objects in contracts must be determinate or specific and generic objects cannot qualify.
Cause and consideration are synonymous.
In reciprocal obligation, consideration is what a person receives and not the object they parted away with.
In donations, the object of the contract is the generosity of the giver.
Motives and consideration are often the same.
False cause invalidates contracts.
Purchases made at unbelievably low prices invalidates the consideration of a contract and hence the contract
itself.

Enumerations/Definitions BIV T2 C1-C2 S1-S3

Contracts are the meeting of minds between parties whereby one party binds himself to another to give something or render
service.
Parties cannot enter into stipulations contrary to law, morals, good customs, public order or public policy
The innominate contracts are du ut des, du ut facias, facio ut des and facio ut facias.
The people bound by a contract are the parties, their heirs and assigns
Personal contracts are those that only produces personal rights while real contracts produces real rights.
Personal rights are rights enforceable only between the parties while real rights are enforceable even against 3rd persons not
party to the contract.
The essential elements of a contract are consent, object and cause/consideration.
Consent is manifested when an offer which is certain is made by a party and is unconditionally accepted by the other party.
An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance is
conveyed.
Option contracts are separate contracts entered into by the parties in order to prevent an offeror from withdrawing an offer w
a specified period based on a separate consideration.
Option money is the consideration paid for an option contract.
Earnest money is a downpayment for a perfected contract.
Persons who cannot give consent are a) insane or demented persons, b) unemancipated minors, and c) deaf-mutes who canno
read or write.
Lucid intervals are intervals of sanity that a person who is insane or demented may experience during their insanity/dementia
The vices of consent are Violence, Intimidation, Mistake, Fraud and Undue Influence
Mistake vitiates consent when it refers to the substance of the thing which is the object of the contract or to those conditions
which have principally moved one or more of the parties to enter into the contract.
The requisites for intimidation to vitiate consent are:
a) It must produce a serious and well grounded fear
b) It must be grave and imminent
c) The evil must must be upon the person or property of the party, his spouse, accendants or decendants.
d) It must be the reason why the party entered into the contract.
Requisite of undue influence to vitiate consent is that such influence must dominate the will or constrain the person from exe
his free will.
There are two kinds of fraud; a) Incidental fraud and b) Causal fraud.
There are two kinds of simulated contracts; a) Absolutely simulated contracts and b) Relatively simulated contracts.

Problem Solving BIV T2 C1-C2 S1-S3

Yes. The main contract is valid as it is a service contract not contrary to law, morals, good customs, public order or public polic
The penalty clauses are void however given that it is contrary to morals or good customs.
The contract entered into is an innominate contract of Du ut Facias or Facio ut Des.
No. The contract is not contrary to law inasmuch as there is no prohibition in law for this kinds of contract.
No. While the penalty may be contrary to morals and good customs, subsidiary contracts or agreements does not nullify the
principal obligation to render a service for compensation.
In this particular case, Julian is still liable for the thesis he promised to Manny plus damages.
No. Vic cannot claim mistake particularly when he had been given an opportunity to examine the property prior to the purcha
thereof that was the reason why he purchased the same. Misgiving on a transaction does not constitute as mistake.
James cannot claim vitiated consent given that he had already entered into the contract prior to the actual signing of the
document. For the state of drunkeness to vitiate consent it must have been present when the contract was entered into.
No. Generally insufficient consideration is not a ground to invalidate a contract unless it can be proven that there was a mista
undue influence or fraud in the transaction. In this case, there was not such indication since James actually defended the low
price.
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o give something or render some

policy

rights.
en against 3rd persons not a

epted by the other party.

ty before acceptance is

rom withdrawing an offer within

nd c) deaf-mutes who cannot

ng their insanity/dementia

tract or to those conditions

ndants.

strain the person from exercing

ulated contracts.

public order or public policy.

ontract.
ments does not nullify the

roperty prior to the purchase

titute as mistake.
e actual signing of the
tract was entered into.
oven that there was a mistake,
actually defended the low
 Modified True or False BIV T2 C3-C5

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Enumerations/Definitions BIV T2 C3 - C5
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Problem Solving BIV T2 C3-C5

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1b

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 Modified True or False BIV T2 C3-C5

The form of the contract is essential for the enforcement of a contract.

Unless provided for by law, contracts do not need to be in any form.
If a contract need to be in a specific form then the parties are duty bound to make the contract in that
particular form.
A public document is one which is known to the public.
Contracts of leases are required to be in a public document.
Renunciation of a hereditary right is contrary to good customs and shall not be valid regardless of the form it
takes.
Public documents can be made in any form.
All Powers of attorney need to be in a public document in order to be valid.
Revocation of a power of attorney must be done in a public document.
Forms of contract refers to the need for a contract to be in writing.
Reformation of the contract refers to the act of re-writing a contract according to the terms actually agreed
upon by the parties.
Reformation is required where the parties, by mistake, failed to agree on what was really the object of the
contract.
Parties who mistakenly signed a deed of sale when their agreement was for a contract of lease may resort to
reformation.
Mistake must be mutual for reformation to take place.
A party who acted fraudulently to have the other party sign a document that was not the intent of their
contract can ask the court for reformation to correct the same before it is implemented.
Fraud in the execution of the contract is a ground for rescission of the contract.
An error committed by a third person in the documentation of a contract may be reformed by the parties in
the contract.
Last wills and testaments may be reformed prior to the death of the testator.
Simple donations inter vivos are pure obligations with no period or condition and are not subject to
reformation.
A party who enforced an erroneous written contract cannot later assail the same and ask for reformation.
Only the parties to a contract can validly ask for reformation.
Reformation is a judicial act.
Interpretation of the contract is the remedy in case of foreign contracts written in a foreign language.
Interpretation of the contract is trying to make sense of the same.
In interpretation of contracts, acts and behaviors of the parties are the controlling factor in determining
intent.
Where the terms of the contract can be understood in several ways, the meaning that makes the contract
more reasonable is adapted.
In the interpretation of the contract, the provisions are interpreted in relation with each other and not
separately.
In interpretation of contracts, the party who prepared the contract being interpreted will be asked to explain
the meaning of the words he used in the contract to understand the contract.
A contract that cannot be interpreted or understood is a contract that does not exist.
The rules of interpretation and reformation of contracts are all in provided for in the civil code.

Enumerations/Definitions BIV T2 C3 - C5
Forms of contract is the manner by which a contract is put into record. It can be oral or in writing (private or public documen
Public documents are documents that bind third persons even if they are not a party to the document.
The following must be in a public document
a) Those which creates, transmits, modifies or extinguishes real rights over immovable property
b) Cession, repudiation or renunciation of hereditary rights or rights in a congular partnership of gains.
c) Powers of attorneys
d) Cession of actions or rights which was created by an act appearing in a public document.
All other contract where the amount involved exceeds five hundred pesos must be in writing
The remedies for confusing contracts are reformation and interpretration
Reformation is the remedy where the written instrument is reformed to reflect the true intentions of the parties.
The requisites of reformation are:
a) There must have been a meeting of minds between the parties
b) The written instrument did not reflect the true agreement or intents of the parties.
c) The reason for this was because of mistake, fraud, inequitable conduct or accident
d) The action for reformation is filed with the proper court with jurisdiction of the case
e) Clear and convincing evidence is presented to prove the mistake, fraud, inequitable conduct or accident.
The following cannot be reformed:
a) Simple donations inter vivos where no condition was imposed.
b) Last wills and testament
c) Void Contracts
Interpretation is the remedy where the document is so confusiing that the intents of the parties could not be determined.
If despite applying the rules of interpretation, the intents of the parties could still be not ascertained then the contract shall be
declared null and void because of no meeting of minds.

Problem Solving BIV T2 C3-C5

Pedro cannot ask for interpretation of the contract because the contract was apparently clear so no interpretation is needed.
No. Pedro cannot ask for reformation because he was the one who caused the confusion in the contract in the first place.
Furthermore, Pedro had already begun to enforce the contract and as such can no longer ask for reformation.
The sales person is incorrect in her arguments. Firstly, the invoice provided to Candy is sufficient form to prove the sale. Seco
in a contract where one of the party is a minor, the one with capacity cannot raise the incapacity of the other to nullify the
contract and finally the salesperson cannot use the excuse of minority to correct its error in the first place.
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(private or public document).
ent.

ins.

of the parties.

ccident.

uld not be determined.

d then the contract shall be

o interpretation is needed.
ntract in the first place.
eformation.
orm to prove the sale. Secondly,
f the other to nullify the
t place.
 Modified True or False BIV T2 C6

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Enumerations/Definitions BIV T2 C6
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Problem Solving BIV T2 C6

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 Modified True or False BIV T2 C6

All defective contracts can be ratified to make it valid.

Rescissible contracts are valid contracts.
Breaches of contracts make valid contracts rescissible.
Contracts entered into by guardians relating to properties of minors are rescissible.
Contracts entered into by a person of a mortgaged property to raise money to pay the mortgage is deemed in
fraud of creditors and hence rescissible.
A person who pays a debt that is not yet due is presumed to be in fraud of creditors.
Rescission of contracts is an option that can be exercised at any time by the innocent party if there is a
breach of contract.
A party can ask for rescission even after the party had initially asked for fulfillment of the contract.
A party can ask for rescission of the contract even before asking for fulfillment of the contract.
Rescission of contracts is an all or nothing proposition.
In the event of fraud in a contract, rescission is the remedy.
A contract cannot be created from an offer which is uncertain.
Donations of property made by a debtor is deemed to be in fraud of creditors.
A contract of a for a 10 year lease cannot be rescinded after 5 years since the action for rescission can only be
brought within 4 years.
In voidable contracts, the defect in the contract is with the consent of one of the parties.
Voidable contracts remain enforceable until it is annulled.
Voidable contract can still be novated before it is annulled.
Ratification of a voidable contract only waives the right to annul the contract and does not make the contract
valid.
Ratification of contracts can only be made by the person whose consent is defective.
In voidable contracts, parties are generally required to return what they have received from the other party.
Fraud that vitiates consent are causal fraud.
A party who cannot return what he or she had gotten from the other party cannot ask for annulment of the
contract.
Statutes of Fraud are provisions of the law that governs fraud relating to the creation of contracts.
A contract created by a minor and an insane person is an unenforceable contract.
Parties to an unenforceable contract may not voluntarily be bound by the terms of the contracts because the
contract is not enforceable.
Mutual promises to marry made in a public document is valid and binding.
If a contract is unenforceable under the statutes of fraud, the said contract cannot be proved in court.
Unenforceable contracts can be ratified by the parties.
Guardians who ratify a contract of a minor with another minor makes the contract valid and binding.
Third parties or strangers to an unenforceable contract cannot have the contract declared unenforceable.
Void contracts may be ratified or novated before it is declared void.
A party who did not contest the void status of a contract are prohibited from raising the same to contest the
contract.
Waiver of future fraud is valid only if made in a public document.
A void contract will always be void but can only be contested only after 4 years from the creation of the
contract.
Parties to an illegal contract which constitutes as a crime is binding on both parties but they can be both
prosecuted by law.
All unlawful contracts are void because they are criminal in nature.
Void contracts because it is illegal may be repudiated at any time by the party who is innocent to the
illegality.
In illegal contracts, parties are left to their own devices to suffer for their own respective losses when the
contract is declared void.
Absolute simulation can never give rise to a valid contract.
Void provisions of the contract may be declared void without affecting the entire contract if the provisions
are divisible.

Enumerations/Definitions BIV T2 C6
There are 5 contracts according to validity; Valid, Rescissible, Voidable, Unenforceable and Void Contracts
The following contracts are recissible:
a) Those entered into by guardians for wards where the wards suffers lesion more than 1/4 of the value of the object
b) Those entered into by representatives of absent persons who suffers lesion more than 1/4 of the value of the object
c) Those undertaken in fraud of creditors
d) Those which refer to things under litigation entered into without the consent of the court or the litigants
e) All other contracts expressly provided by law to be rescissible
The right to rescind prescribes within or after 4 years.
Voidable contracts are:
a) Contracts entered into by a person who is incapable of giving consent
b) Contracts entered into where consent is vitiated by violence, intimidation, mistake, fraud or undue influence
The right to bring action prescribes within or 4 years after:
a) In case of violence, intimidation or undue influence from the time the condition ceases
b) In case of mistake or fraud, from discovery of the same.
Uneforceable contracts are contracts:
a) entered into in behalf of another by someone with no authority or has exceeded his authority to do so.
b) Those that violate the statute of frauds
c) where both parties are incable of giving consent.
Under the statutes of fraud, the following must be in writing
a) Agreements by whose terms are not to be performed within one year from the making thereof.
b) A special promise to answer for the debt, default or miscarriage of another.
c) Those made in consideration of marriage
d) Agreements which have for its objects anything values at not less than 500 pesos.
e) Lease agreements exceeding 1 year
f) Representation as to credit of third persons
Under the statutes of fraud, the following must be in writing
a) Those whose cause or object is contrary to law, morals, good customs, public order or public policy
b) Absolutely simulated or fictitious contracts
c) Contracts whose objects did not exist at the time of the transaction.
d) Contracts with objects which is outside the commerce of man
e) Contracts which contemplate an impossible service
f) Contracts where the intentions of the parties relative to the principal object of the contract cannot be ascertained.
g) Those expressly prohibited or declared void by law.

Problem Solving BIV T2 C6

The contract of NBC is a voidable contract since Edwin is a Minor. No damage need to be proved only the minority so NBC nee
refund or replace the book.
Yes. In illegal contracts, the same may be repudiated before any third person is affected or the act has not yet been done.
Yes. If the interest of the public may be subserved, then the amount paid may ordered by court to be returned.
Not yet. No crime had yet been committed and as such there is still no criminal liability.
Mutual promise to marry is always unenforceable even if it is made in writing.
The contract is still unenforceable even if one of the parties ratify the same.
The contract remains unenforceable even if both the parties ratify the same.
Jojo cannot assail the unenforceable contract of Toto and Jazmine as he is a third party.
Yes, although the contract is unenforceable, there is no law that prohibits the parties from voluntarily complying with the sam
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ntracts

value of the object

e value of the object

e litigants

ue influence

do so.

icy

ot be ascertained.

nly the minority so NBC need to

has not yet been done.
be returned.

rily complying with the same.