The Law on Obligations and Contracts

The Law of Obligations and Contracts is the body of rules which deals with the nature
and sources of obligations and the rights and duties arising from agreements and
particular contracts

The following are the exceptions under transmissibility of

None of the choices
rights of fulfillment of obligation, except:
Under kinds of prestation on obligation to do, the duty of
the obligor to pay damages as obliged to do something
TRUE fails to do it , the will be no action for compliance because
that would be involuntary servitude as prohibited by the
constitution.
Under subsidiary liability of a crime, innkeepers, tavern
FALSE keepers or any other persons or corporation, shall not be
civilly liable for crimes committed in their establishment.
Damages can be recovered when contract is not perfected
TRUE if withdrawal of the offer must be without any illegitimate
cause.
is conditional type of
Suspensive obligation where an obligation arises, but if the condition
does not happen, obligation does not come to existence.
Period of prescription
continues with respect to
The following are effects of Legal Compensation except:
the obligation or part
extinguished.
Under kinds of period or term as to source, Article 1197
Par 3, in every case, the court shall determine such period
TRUE as may under circumstances have been contemplated by
both parties. Once fixed by the courts, the period cannot
be changed by them.
In reciprocal obligations, there can only be delay in
FALSE negative obligations (not to give or not to do) not in positive
obligations (to give or to do).
An obligation is a legal duty, however created, the violation
TRUE
of which may become the basis of an action of law.
The following are the primary remedies of creditor in case
Accion Subrogatoria
of breach except:
They are not contrary to Parties may freely enter into any stipulations or contracts,
law, morals, good customs, provided .
TRUE Every person criminally liable is also civilly liable.
The following are primary remedies in case of breach
Accion Pauliana
except:
When only one prestation is agreed upon, but the obligor
Facultative may render another substitution, the obligation is
.
There are pre-existing The following are the requisites of Quasi Delict except:
contractual relations
between the parties.
Concept of is the meeting in
Merger one person of the qualities of the creditor and the debtor
with respect to the same obligation
The head of a family that lives in a building or a part
TRUE thereof is responsible for damages caused by things
thrown or falling from the same.
is a kind of Prestation
To do which consist of all kinds of work or services, whether
mental or physical.
The following are requisites of obligation with a period
Retroactive
except:
is called when
Express
specifically stated.
Damages can be recovered if when contract is not
Pre contractual obligation
perfected.
power belonging to a person over
specific thing, without a passive subject individually
Real Right
determined against whom such rights may be personally
exercised.
Under Action for damages, recoverable for damages
FALSE include any and all damages that a human being may
suffer. Responsibility for damages may be divisible.
is a kind of Quasi-contract
which states that whoever voluntarily takes charge of the
agency or management of the business or property of
Negotiorum gesto another, without any power from the latter, is obliged to
continue the same until the termination of the affair and its
incidents or to require the person concerned to substitute
him, if the owner is in the position to do so.
A person's conduct
expected of a reasonably
prudent person acting Elements of negligence are the following except:
under similar
circumstances.
Insane person acting in The following are exempting circumstances, do not incur
lucid interval criminal liability but not exempt from civil liability except:
General Rule: Nullity of penal clause does not nullify
Obligation
affect the principal .
Even in the absence of demand, debtor incurs delay if he
acknowledges his delay. Request for extension of time for
TRUE
payment is not sufficient though, the acknowledgement
must be express.
Fair Under Quasi contract, consider a pizza that is delivered to
the wrong address. The pizza has already been paid for. If
the individual does not correct the delivery man and
instead keeps the pizza, the court system could issue a
quasi contract that would require the Individual to pay back
the amount of the pizza to the party that paid for the pizza.
 The contract is used to prevent any party from benefiting
from the situation at the other party's expense; the
restitution required under the contract is to make the
situation .
If the thing is lost through the fault of the debtor, he shall be
All of the choices obliged to pay damages; It is understood that the thing is
lost when it .
Manufacturers and processors of food stuffs, drinks, toilet
articles and similar goods shall be liable for death or
TRUE injuries caused by any noxious or harmful substances
used, although no contractual relation exists between them
and the consumers.
Obligation arising from Law or 'Obligation ex lege' is
TRUE imposed by law itself and must be expressly or impliedly
set forth and cannot be presumed.
is a kind of Novation as
Partial to effect where only a modification or change in some
principal conditions of the obligation.
Possible to foresee the
The following are the requisites of fortuitous event under
event which constitute caso
extinguishment of liability in case of breach except:
fortuito and avoidable
is a kind of
compensation as to origin when decreed by court in a case
where there is a counterclaim like defendant is the creditor
Judiciary of the plaintiff for an unliquidated amount, sets up his
credit as a counterclaim against the plaintiff and his credit
is liquidated by judgment, thereby compensating it with the
credit of the plaintiff.
is the result of injury (loss,
Damage
hurt, harm)
A clothing company engaged a celebrity as its product
ambassador so long the latter does not endorse a
particular rival business. If the celebrity is caught promoting
TRUE
the products of that rival business, the clothing company
may terminate the contract as the resolutory condition took
effect.
Sheila bought a refrigerator from May but Sheila did not
pay the refrigerator. If after demand, Shiela still did not pay,
TRUE
May can sue Shiela in Court either to demand payment or
for recovery of the refrigerator.
Commission of crimes causes not only moral evil but also
TRUE
material damage.
Partial fulfillment The following are the requisites of rescission except:
connotes that in case of non
Juridical necessity
compliance of the obligation, there will be legal sanction.
The offended parties When criminal action is instituted, the civil action for the
waives the civil action recovery of the civil liability arising from the offense
charged shall deemed instituted with the criminal action
unless , reserves
 the right to institute it separately or institutes the civil action
prior to the criminal action.
One of the requisites of prestation is that it must be
Void possible, if not then the obligation is
.
When fulfillment of obligation is no longer possible,
TRUE
rescission takes place.
Under obligations with Penal clause, the penalty may be
demandable enforced only when it is in
accordance with the provision under Article 1226 par2.
Substantial breach of contract is where part of obligation is
FALSE
performed and gives rise to liability for damages.
Dolo means deceit or fraud.
In any manner upholding The following are cases when you have the right to
with tenor of obligation damages except:
Delay Mora means .
Obligations arising from contracts have the force of law
TRUE between contracting parties and should be complied with
good faith.
Under Alternative Obligations, the following are the effects
of loss or impossibility of one or all prestations or when the
None of the choices debtor shall lose the right of choice, when among the
prestations whereby he is alternatively bound only one is
practicable except:
TRUE No liability for fortuitous events intervene.
is a kind of indivisible obligation
Legal even the object or service may be divisible, an obligation is
indivisible if so provided by law or intended by parties.
obligation is based on
Natural
equity and natural justice.
is a juridical necessity to
Obligation
give, to do or not to do.
Culpa Levis The following are kinds of negligence except:
Demand may be in any form, provided it can be proved.
TRUE
Burden of proof of demand on creditor.
Change in the object of
What is the objective of Novation?
prestations
Under reciprocal obligations, the injured party may choose
between fulfillment of obligation and the rescission of the
obligation, with the payment of damages in either case. He
Impossible
may also ask rescission even after he has chosen
fulfillment, if the latter should become
.
Alternative Agoncillo vs. Javier. Facts: Three debtors got a loan from
Marino and bound themselves to pay P2,7000.00. The loan
was secured by a mortgage of a house and lot. It was
agreed that if upon the maturity of the debt, the debtors are
insolvent, they would cede the house and the lot to Marino.

Not presumed
Prestation
Liability for fault for others
Expressly determined
TRUE
Impossible
All of the choices
All of the choices
Yes as per conditional
obligation.
Obligee or creditor
If the house and lot would not be sufficient to cover the
debt, the balance would be secured by the mortgage of 4
parcels of land belonging to one of the debtors. The titles
were delivered to Marino. As the debt was not paid, Marino
sued the debtors. Issue: Whether or not the stipulation of
the parties is valid? Held: This stipulation is valid. It is
simply a/an obligation, which is
expressly allowed by the law. The agreement to convey the
house and lot at an appraised valuation in the event of
failure to pay the debt in money at its maturity is, however,
in our opinion perfectly valid. It is simply an undertaking
that if the debt is not paid in money, it will be paid in
another way.
Legal Subrogation is .
, which is an object or undertaking
to give, to do or not to do
Obligation arising from quasi- delict is demandable not only
for one's own acts or omissions but also for those persons
for whom one is responsible.
Law as a source of obligation requires
When the obligation consist in the delivery of an
intermediate or generic thing, whose quality or
circumstance have not been stated, the creditor cannot
demand a thing of superior quality, Neither can the debtor
deliver a thing of inferior quality. The purpose of the
obligation and other circumstances shall be taken into
consideration.
conditions as to possibility
which are those contrary to good customs or public policy
and those prohibited by law shall annul the obligation
which depends on them.
Civil action for recovery of civil liability arising from the
offense is impliedly instituted with the criminal action
except;
Even though the object or service may be physically
divisible but the obligation is indivisible if
A car distributor placed an order for 20 luxury cars from a
car maker company provided that the latter deliver the
goods within 12 months. It was expressly agreed and
stipulated in writing that full payment depended on the
prompt delivery of the goods. If the cars are delivered
within the agreed period, the car company acquires to right
to demand full payment for the purchase and its obligation
to deliver is extinguished. Conversely, if the cars are not
delivered after the expiration of the period, does the
obligation to pay by the car distributor's extinguished?
Under obligations, an active subject, also known as
the , who has the power to demand the
prestation
 The following are ways to test divisibility of obligations,
Definite things
except:
Period is not the controlling
The following are exceptions of demand except:
motive
There is solidarity liability only when obligation expressly
TRUE so states or when the law or when the nature of the
obligation requires solidarity.
General rule: Nullity of principal obligation, also nullify
Penal clause
.
A is a meeting of minds
Contract between two persons whereby one binds himself with
respect to the other, to give something or to render service.
are interests on obligation
Compensatory
which have an extra contractual or delictual origin.
A is an agreement between two
parties without previous obligations to one another that has
Quasi contract been created and legally recognized by the court system.
Under this contract, neither involved party is expected to
create such an agreement.
The receipt of the principal by the creditor, without
FALSE reservation with respect to interest, shall give rise to the
presumption that the interest has not been paid.
To demand reimbursement Under kinds of prestation on obligation not to do, the
to those who benefitted. following are the duties of the obligor except:
Under Quasi contracts, when funeral expenses are borne
by the third person, without the knowledge of the relatives
FALSE who are obliged to give support to the deceased, said
relatives must reimburse to the third person, even without
claim was made by the third person.
An employer may be civilly liable for the quasi delict or
Diligence of Employers
crime of his employee.
is a kind of Prestation
which consist of the delivery of a movable or immovable
To give thing, in order to create a real right or for the use of the
recipient or for its simple possession or in order to return to
its owner.
Under Article 1206, when only one prestation has been
FALSE agreed upon, but the obligor may render another in
substitution the obligation is called alternative.
In an obligation to give like Avon Products, the passive
subject is the seller, the active subject is the buyer, the
To deliver the Avon
prestation is "to give," specifically to deliver the Avon
Products
Products, and the juridical tie is a source of obligation
arising from contract.
Civil obligations arising from
Crime/s without civil liability are the following except;
criminal offense.
None of the choices The following are kinds of Negligence except;
None of the choices The following crimes are exempted from civil liability under
 acts punishable by law except:
In solidum The following are words indicating joint obligation except:
Under Quasi-delict, Teachers or Heads of establishment of
arts and trades shall be liable for damages caused by their
FALSE
pupils or students or apprentices, as long as they are not in
their custody.
An accounting firm and a computer shop are two separate
businesses that do not have any connection. If the
accounting firm buys 20 sets of computers for P400,000.00
Delivery of the 20 sets of from the computer shop, then a legal connection (juridical
computers. relation) is created between the two enterprises. With a
perfected written contract of sale, the accounting firm may
demand from the computer shop the
.
Under kinds of Penal clause as to purpose,
substitutes the damages
suffered by the creditor; the matter of damages is
Reparatory generally resolved, and it represents the estimate of the
damages that a party might suffer from non performance of
the obligation, thereby avoiding the difficulties of proving
such damages.
rebellion The following are examples of 'Acts of God' except;
FALSE Obligations derived from law are presumed.
The following are the duties of obligor under Obligation to
None of the choices
Give, except:
An offer made through an agent is accepted from the time
TRUE
acceptance is communicated to him.
is a unilateral proposition which
Offer one party makes to the other for the celebration of the
contract
Third party, even in good In general, the following can be made or authorized to
faith receive payment except:
The parties are free to determine the content of the
TRUE contract insofar as it does not contravene the mandatory
provisions of both the law and good morals.
Advertisements for bidders are simply
to make proposals, and
invitations
the advertiser is not bound to accept the highest or lowest
bidder, unless the contrary appears.
is a kind of payment
Abnormal when a debtor is forced by means of judicial proceeding
either to comply with the prestation or pay indemnity.
is where courts must find that the
Contrary to public policy contract contravenes some established interest in the
society
The following is a classification of a contract according to
gratuitous
form except:
Prestation due In general, what is to be paid in an obligation?
 Under Estoppel, when the obligee accepts the
performance, knowing its incompleteness or irregularity
All of the choices
and without expressing any protest or objection, the
obligation is deemed .
There is when one of
the contracting parties is compelled by a reasonable and
intimidation well-grounded fear of an imminent and grave evil upon his
person or property, or upon the person or property of his
spouse, descendants or ascendants, to give his consent.
The fixing of a price may be determined by one of the
FALSE
contracting party for the sale to be perfected.
A contract where consent is given through mistake,
voidable
violence, intimidation, undue influence, or fraud is voidable.
Pactum commisorum means automatic foreclosure.
The following are the effects if a third person payment
Third person is not entitled
which is not an interested party with debtor's consent,
to full reimbursement
except:
A contract entered into in the name of another by one who
has no authority or legal representation, or who has acted
beyond his powers, shall be unenforceable, unless it is
TRUE
ratified, expressly or impliedly, by the person on whose
behalf it has been executed, before it is revoked by the
other contracting party.
In contracts creating real rights, third persons who come
into possession of the object of the contract are bound
TRUE
hereby, subject to the provisions of the Mortgage Law and
Land Registration Laws.
There must be mutuality between the parties in contracts
based on their essential equality, to which is repugnant to
TRUE
have one party bound by the contract leaving the other free
there from.
The determination of the performance maybe left to a third
FALSE person, whose decision is binding even if not known to
both parties.
In acceptance of offer with a period, acceptance beyond
FALSE
the time fixed is not legally an acceptance but an old offer.
If the debt produces interest, payment to the principle
TRUE should have not deemed have been made until the interest
has been covered.
In general rule, payment to a wrong third party is valid but
FALSE obligation is not extinguished even if in good faith of the
debtor.
may be ordered at the
instance of either party or his successors in interest, if the
Reformation
mistake was mutual; otherwise, upon petition of the injured
party, or his heirs and assigns.
It is considered loss of the thing due are through the
None of the choices
following reasons except:
 Failure to disclose facts, when there is a duty to reveal
fraud them, as when the parties are bound by confidential
relations, constitutes .
In order that fraud may make a contract voidable, it should
TRUE be serious and should not have been employed by both
contracting parties.
General rule: Creditor cannot be compelled to receive
TRUE partial prestations as well as Debtor cannot be compelled
to pay partial payments.
The statement of a false cause in contracts shall render
void
them .
is a characteristic of a contract
Obligatory force
which constitutes the law between parties.
When a mutual mistake of the parties causes the failure of
reformed the instrument to disclose their real agreement, said
instrument may be .
Misrepresentation made in good faith is not fraudulent but
error
may constitute .
The procedure for the reformation of instrument shall be
Supreme Court governed by rules of court to be promulgated by the
.
Contracts without cause, or with unlawful cause, produce
TRUE no effect whatever. The cause is unlawful if it is contrary to
law, morals, good customs, public order or public policy.
Stipulations in favor of third persons may demand its
FALSE fulfillment provided the acceptance is made after
revocation.
when the option is founded
When the offerer has allowed the offeree a certain period
upon a consideration, as
to accept, the offer may be withdrawn at any time before
something paid or
acceptance by communicating such withdrawal, except:
promised.
Obligations arising from the contract have the force of law
TRUE
between contracting parties.
means one party bears the lion's
Pactum leonina
share of the risk.
No one may contract in the name of another without being
TRUE authorized by the latter, or unless he has by law a right to
represent him.
A contract is to be judged by its character, courts will look
TRUE
into substance and not to the mere form of the transaction.
To determine the degree of intimidation,
all of the choices of the person shall be
borne in mind
Real contracts, such as deposit, pledge and Commodatum,
TRUE are not perfected until the delivery of the object of the
obligation.
Contrary to good customs pertains to certain percepts that
cannot be universally recognized as moral, sometimes they

voidable
There is stipulation to the
contrary.
None of the choices
fraud
Contrary to morals
void
Mistake or error
correction
FALSE
made by an expert and the
other party has relied on the
former's special knowledge.
Must be conditional
Dation in payment
Debtor is aware of
insolvency at the time he
deligated his debt
All of the choices
TRUE
Debtor
vitiate
annulment of contract
only apply to certain communities or localities.
When the offer or acceptance made during a hypnotic
spell, it becomes:
Under payment by Cession, the debtor may cede or assign
his property to his creditors in payment of his debts unless
.
The following are requisites of a valid payment except:
There is when, through
insidious words or machinations of one of the contracting
parties, the other is induced to enter into a contract which,
without them, he would not have agreed to.
means man's innate sense or
notion of what is right and wrong is more or less universal.
An absolutely simulated or fictitious contract is
.
is a wrong or false notion
about such matter.
A simple mistake of account shall give rise to its
.
An offer becomes ineffective upon the death, civil
interdiction, insanity, or insolvency of either party after
acceptance is conveyed.
A mere expression of an opinion does not signify fraud,
unless:
The following are requisites of a valid tender of payment
except:
property is alienated to the
creditor in satisfaction of a debt in money shall be
governed by laws of sales.
The following are effects of delegacion except:
Partial payment is not allowed except:
Contracts are perfected by mere consent, and from that
moment the parties are bound not only to the fulfillment of
what has been expressly stipulated but also to all the
consequences which, according to their nature, may be in
keeping with good faith, usage and law.
The following are the third persons or interested parties
who can pay to extinguish obligation except:
Mistake as to the identity or qualifications of one of the
parties will consent only when
such identity or qualifications have been the principal
cause of the contract.
If mistake, fraud, inequitable conduct, or accident has
prevented a meeting of the minds of the parties, the proper
remedy is .
 The determination of the performance may be left to a third
TRUE person, whose decision shall not be binding until it has
been made known to both contracting parties.
As a general rule, partial payment is not allowed, creditor
cannot be compelled to receive partial prestations same
All of the choices
way debtor cannot be compelled to give partial payments
except:
is a meeting of minds between two
Contracts persons whereby binds himself, with respect other, or to
give something or to render some service.
All services which are not contrary to law, morals, good
TRUE customs, public order or public policy may likewise be the
object of a contract.
Under Estoppel, when oblige accepts the performance
knowing its incompleteness or irregularity and without
Fulfilled/complied with
expressing any protest or objection, the obligation is
deemed .
The relativity as a characteristic of contract will take effect
TRUE
only between parties, their assignments and heirs.
Contract is perfect when the offeror or counter offeror learn
TRUE
about the acceptance.
is a characteristic of a contract
wherein entering into contract is guaranteed right by
Freedom
citizens. They are free to do so as long as it's not
contrary to law, customs, public order and policy.
How payment is made? A debt shall not be understood to
have been paid unless the thing or service which the
TRUE
obligation has beencompletely delivered or rendered as the
case may be.
Impossible things or services can be the object of
FALSE
contracts.
Disagreement The following are characteristics of a contract, except:
Simulation of a contract may be
absolute or relative
.
is a characteristic of a contract
Relativity which is binding only upon the parties and their
successors.
tends only to assure and pave the
Perfected promise way for the celebration of a contract is actually made, the
rights and obligations are not yet determined.
Under payment/performance, the delivery of promissory
notes payable to order or bills or exchange or other
Cashed mercantile documents shall produce effect of payment only
when they are , or when through
the fault of the creditor they have been impaired.
Mortgage, guaranty and bond are examples of
Accidental
elements of a contract
FALSE Acceptance made by letter or telegram does bind the
 offerer except from the time it came to his knowledge. The
contract, in such a case, is presumed to have been entered
into in the place where the offer was made.
Promise The following are essential elements of a contract except:
is a characteristic of a contract
Mutuality wherein validity and performance cannot be left at the will
of one of them.
Payment or Performance The most natural way to extinguish obligation.
Prestation In general, what is to be paid to extinguish obligation?
Mortgage, insurance and bonds are examples of natural
FALSE
elements of a contract.
FALSE In general, creditor can refuse valid tender of payment.
No contract may be entered into upon future inheritance
TRUE
except in cases expressly authorized by law.
Introduction The following are stages of a contract, except:
All things which are not outside the commerce of men,
TRUE
including future things, may be the object of a contract.
When one of the parties is unable to read, or if the contract
is in a language not understood by him, and mistake or
TRUE fraud is alleged, the person enforcing the contract must
show that the terms thereof have been fully explained to
the former.
There is no contract unless the following requisites concur ,
None of the choices
except:
The following are ways to extinguish or annulment of a
Offeror makes a new offer
current offer, except:
The usual exaggerations in trade, when the other party had
fraudulent an opportunity to know the facts, are not in themselves
.
The cession, repudiation or renunciation of hereditary
FALSE rights or of those of the conjugal partnership of gains, may
not appear in public document.
None of the choices The following are requisites of condonation, except:
Contracts agreed to in a state of drunkenness or during a
voidable
hypnotic spell are .
Under obligation to give, when a minor 18-21 entered into
a contract without parental consent , voluntarily pays the
TRUE sum of money and delivers a fungible thing in fulfillment of
an obligation, there shall be no right to recover the same
from the oblige who has spent or consumed it in good
faith.
all of the choices Acceptance may be or implied.
imperfected promise means mere unaccepted offer.
none of the given choices The following may not be reformed, except:
Contracts are perfected by mere consent, and from that
moment, the parties are bound not only to fulfillment of
FALSE
what has been expressly stipulated but not to
consequences
 The following must not be stipulated in the contract,
contrary to traditions
except:
Consent is manifested by the meeting of the offer and the
acceptance upon the thing and the cause which are to
counter offer constitute the contract. The offer must be certain and the
acceptance absolute. A qualified acceptance constitutes a
.
Test of fraud Under rescissible contracts, does it prejudice the creditors?
contracts as by its nature
Void of the defect, one of the essential requisites of a contract is
lacking in fact or in law.
contracts as by its nature
of the defect is by representation if the absentees when the
Rescissible
later suffers by lesion of more than 25% of the value of the
thing.
contracts as by its nature
Rescissible of the defect, declared by law to be the subject of
rescission.
contracts as by its effect
Voidable
is valid until annulled by a competent court.
Suppose a stipulation or word written contract is
The one which would be
susceptible of various interpretations. What interpretation
effectual.
or meaning should be given to it?
Non existent contract which is an absolute nullity.
contracts whose objects
Void
are outside the commerce of man.
When one of the parties brought in action to enforce the
TRUE
instrument, he cannot subsequently ask for its reformation.
The power to administer a property must appear in a public
TRUE
document
Words ought to be subservient to the intent, not the intent
TRUE
to the word.
They produce legal effects
The following are characteristics of unenforceable
unless set aside by a
contracts, except:
competent court.
If the doubts are cast upon the principal object of the
contract in such a way that it cannot be known what may
FALSE
have been the intention or will of the parties, the contract
shall be valid.
When through the ignorance, lack of skill, negligence or
bad faith on the part of the person drafting the
Reformed instrument or of the clerk or typist, the instrument does
not express the true intention of the parties, the courts
may order the instrument be .
All other contracts where the amount does not exceed five
FALSE
hundred pesos must appear in writing.
A contract where consent is given through mistake,
TRUE
violence, intimidation, undue influence is voidable.
 Absence of cause and unlawful cause produces no effect
TRUE whatever. The cause is unlawful is it is in contrary to law,
morals, good customs, public order and public policy.
cleanses the contract from its defect
Effects of Annulment
from the moment it was constituted.
If two parties agree upon the mortgage or pledge of real or
personal property, but the instrument states that the
TRUE
property is sold absolutely or with a right of repurchase,
reformation of the instrument is proper.
In impossibility of things and services, the impossibility
TRUE must be actual and contemporaneous with the making of
the contract and not subsequent.
is no impediment to the
Statute of Frauds
reformation of an instrument.
contracts as by its effect
Rescissible
is valid until rescinded .
The various stipulations of a contract shall be interpreted
TRUE together, attributing to the doubtful ones that sense which
may result from all of them taken jointly.
does not affect the validity of
Motive
the contract.
contract that cannot be enforced
Unenforceable
unless ratified in the manner provided by law.
When real agreement is The following are cases where no reformation is allowed
valid. except:
If the terms of a contract are clear and leave no doubt upon
the intention of the contracting parties,
literal
the meaning of its stipulations shall
control.
Prescription of action for annulment-after prescription,
can no longer be set aside
contract .
Within the commerce of
The following may not be the objects of a contract except:
man
is the thing, right or service
Object which is the subject matter of the obligation arising from
the contract
is one that by
universally recognized standards is inherently or by its very
Illegal per se
nature bad or improper, immoral or contrary to good
conscience.
where it restore to each
Effects of Annulment other things which have been the subject matter of the
contract including its fruits and the price with interest.
If mistake, fraud, inequitable conduct or accident has
FALSE prevented to have a meeting of the minds by both parties,
the remedy is reformation.
Under defective causes, lesion or inadequacy of cause is
TRUE
valid unless fraud or undue influence is valid.
 In order to judge the intention of the contracting parties,
their contemporaneous and
subsequent
acts shall be
principally considered.
None of the choices The following are impossible things except:
The following are causes of reformation of instrument
None of the choices
except:
any person may invoke the
accion reinvindicatoria inexistence of the contract whenever juridical effects
founded thereon are asserted against him.
The usage or custom of the place shall be borne in mind in
the interpretation of the ambiguities of a contract, and shall
TRUE
fill the omission of stipulations which are ordinarily
established.
When there is meeting of minds but the true intention is not
TRUE expressed, a relief of reformation of the instrument may be
sought by one of the parties.
When mutual mistake of the parties causes the failure of
FALSE the instrument to disclose their real agreement, said
instrument may be annulled.
There is when through insidious
words or machinations of one of the contracting parties, the
Fraud
other is induced to enter into a contract which, without
them, he would not have agreed to.
Consent is manifested by the of
Meeting the offer and acceptance upon the thing and the cause
which are to constitute a contract.
Under voidable contracts, When the defect of the contract
consists in the incapacity of one of the parties, the
restitution incapacitated person is not obliged to make any
except insofar as he has been
benefited by the thing or price received by him.
is a unilateral
Offer proposition which one party makes to the other for the
celebration of the contract.
Void
The procedure of reformation of instrument shall be
Rules of court governed by of the Supreme
Court.
Insane during lucid interval The following cannot give consent to a contract except:
are descriptive of statutes which
requires certain classes of contracts to be in writing. Merely
Statute of Frauds
regulates the formalities of the contract necessary to
render it enforceable.
of the law excuses no
Ignorance
one from compliance therewith
Writing All other contracts where the amount exceeds five hundred
pesos must appear in , even private
 one.
The following are reasons to annul a contract when it has
Equitable conduct
prevented the meeting of the minds of the parties, except:
The interpretation of obscure words or stipulations in a
FALSE
contract shall favor the party who caused the obscurity
If one party was mistaken and the other acted fraudulently
or inequitably in such a way that the instrument does not
TRUE
show their true intention, the former may ask for the
reformation of the instrument.
Those contracts whose cause, object or purpose is
Inexistent contrary to law, morals, good customs, public order, or
public policy are .
TRUE A qualified acceptance constitutes a counter offer.
Under Void contracts, when the act is unlawful and
both parties will be
constitutes a criminal offense and both parties are
prosecuted.
guilty, .
If the debtor knew the impossibility of things and services,
TRUE
he will be liable for damages.
The interpretation of obscure words or stipulations in a
FALSE
contract shall favor the party who caused the obscurity.
contracts as by its nature
Unenforceable
of the defect, both parties are legally incapacitated to act.
contracts, the cause is
Onerous understood to be, for each contracting party, the prestation
of a thing or service by the other.
What action may be taken when the true intentions of the
Reformation
parties are not expressed in the instrument?
contract in which consent of
Voidable
one of the parties is defective.
Under form of contracts, when the law requires that a
contract be in some form in order that it may be valid and
Absolute
enforceable or that a contract be proved in a certain way,
that requirement is and indispensable.
A contract to be effective as Cessation must not appear in
FALSE
a public document.
contracts as by its nature
Unenforceable
of the defect are covered by statute of frauds.
contracts whose cause
Void
or object did not exist at the time of transaction.
contracts as by its nature
Unenforceable of the defect, was entered in the name of another without
authority or in excess of authority.
An exception in the form of contracts is when the law
TRUE requires that a contract be in order it may be valid or
enforceable.
In onerous transfer, if there is good faith, the contract may
FALSE
be rescinded.
words ought to be
verba intentione non e contradebent inservare means
subservient to the intent,
.
not the intent to the word.
are all kinds of things and
Outside the commerce of
interests whose alienation or free exchange is restricted by
man
law or stipulation, which parties cannot modify at will.
contracts as by its nature
Void
of the defect, expressly prohibited by law.
pari delicto means both are at fault.
are contracts resolved
Adhesion contracts against the party who prepared it and in favor of the one
who merely adhered to it.
The action for rescission is ; it
cannot be instituted except when the party suffering
subsidiary
damage has no other legal means to obtain reparation for
the same.
contracts as by its nature
Voidable
of the defect, want of capacity by age or insanity.
Acceptance made by a letter or telegram does not bind the
offerer except from the time it came to his knowledge. The
TRUE
contract in such case is presumed to have been entered in
the place where the offer was made.
contracts are in between void and
Rescissible
valid.
Words which may have different significations shall be
TRUE understood in that which is most in keeping with the nature
and object of the contract.
contracts are those
Void
contemplate an impossible service.
contracts which are
Voidable
binding until they are annulled by a competent court.
The contract with absolute nullity and produces no effect
TRUE
as if it had never been executed or entered into.
contracts as by its nature
of the defect, when cause, object or purpose of contract
Void
are contrary to law, good customs, morals, public order or
public policy.
Contracts shall be obligatory, in whatever form they may
TRUE have been entered into, provided all essential requisites for
their validity are present.
As a general rule, contracts shall be
in whatever form they have
Obligatory
entered into, provided all essential requisites for their
validity are present.
Under Void contracts, when the act is unlawful and
constitutes a criminal offense and when only one is guilty,
innocent party
the may demand of what he has
given without obligation to comply with his promise.
 contract that has caused a
particular damage to one of the parties or to a third person
Rescissible
and which for equitable reasons may be set aside even if
valid.
contracts are those
Void
absolutely simulated or fictitious.
is the determination of
Interpretation of contracts the meaning of the terms or words used by the parties in
their written contract.
In order to judge the intention of the contracting parties,
TRUE their contemporaneous and subsequent acts shall be
principally considered.
contracts as by its nature
of the defect, consent is vitiated by mistake or error,
Voidable
violence and intimidation, undue influence, fraud or
misrepresentation.
The particular motive of the parties entering into a contract
FALSE
are the same from the cause thereof.
Although the cause is not stated in the contract, it is not
FALSE
presumed to that it exists and illegal.
is an injury suffered by
Lesion one of the parties by virtue of contract that is advantageous
to him.
If the law requires a document or other special form, as in
the acts and contracts enumerated in the contracts must
Compel appear in public document, the contracting parties may
each other to observe that form,
once the contract has been perfected.
contracts as by its nature
Rescissible of the defect entered by a debtor who is in a state of
insolvency like contracts entered in fraud of creditors
When you interpret a contract you must look for the
TRUE
contractual intent.
The various stipulations of a contract shall be interpreted
together , attributing to the doubtful ones that
sense which may result from all of them taken jointly.
When there is mutual mistake, either party or the
TRUE
successor in interest may ask for reformation.
intentions of the parties In interpretation of contracts, what must prevail?
contracts can be cured
Rescissible
by ratification or prescription.
contracts are essentially
Gratuitous
agreements to give donations.
If two parties agree upon the mortgage or pledge of real or
personal property, but the instrument states that the
Reformation property is sold absolutely or with a right to repurchase,
of the instrument is
proper.
 The object of the obligation and object of the contract
FALSE
created thereby need not be identical.
contract shall be resolved
Adhesion against the party who prepared the contract and in favor of
the one who merely adhered to it.
is a wrong or false notion
Mistake about such matter, a belief in the existence of some
circumstance, a fact or event which in reality does not exist
The usage or custom of the place shall be disregarded in
the interpretation of the ambiguities of a contract, and shall
FALSE
fill the omission of stipulations which are ordinarily
established.
contracts can be cured
Unenforceable by ratification, acknowledgement, acceptance or
confirmation.
When there is unilateral mistake, the uninjured party may
FALSE
ask for reformation.
Rescissible contract that has caused a particular damage
TRUE to one of the parties or to a third person and which for
equitable reasons may be set aside even if valid.
Impaired The following are the requisites of consent, except:
Contracts of Adhesion shall be resolved against the party
TRUE who prepared the contract and in favor of the one who
merely adhered to it.
is the determination of the
Interpretation of contracts meaning of the terms or words used by the parties in their
written contract.
contracts as by its effect
Void
does not create rights and cannot impose obligation.
prevent fraud and perjury in
the enforcement of obligations depending for their
evidence upon the unassisted memory of witnesses by
Purpose of Statutes
requiring certain enumerated contracts and transactions to
be evidenced by a writing signed by the party to be
charged.
is a fear occasioned by
Reasonable fear
the threat must be reasonable and well grounded.
If the doubts are cast upon the principal object of the
contract in such a way that it cannot be known what may
TRUE
have been the intention or will of the parties, the contract
shall be null and void.
evidence of agreement and is
Written memorandum/note
used to show the intention of the parties.
contracts as by its effect
Unenforceable
is valid but cannot be enforced by a proper action in court.
contracts cannot be
Void
cured.
TRUE If the terms of a contract are clear and leave no doubt upon

Rescissible
Time is the controlling
motive
Yes, Soterro knew about
the decision against
Benigno, but proceeded
with the purchase.
voidable.
No, since such prohibition is remarrying after his death, at the pain of the legacy of
authorized by law and is not P100 million in her favor becoming a nullity. But a year
repressive; she could
remarry but must give up
the money.
Philippine law since they
are both Filipinos.
dura lex sed lex
Condition subsequen or
Resolutory
Yes, because there is fraud Facts: The Dela Cruz sisters were the aunts of Dolores
and absence of consent
the intention of the contracting parties, the literal meaning
of its stipulations shall control.
contracts as by its nature
of the defect refer to things in litigation without the
knowledge and approval of litigants or competent judicial
authority.
Demand is not necessary to incur delay when:
Facts: Cabaliw was the second wife of Benigno. During
their marriage, they bought 2 parcels of land. They had a
daughter named Soledad. Benigno abandoned his wife
Cabaliw, thus the latter filed an action in court for support.
The Court ordered Benigno to pay her P75 a
month.However, Benigno did not pay and instead sold their
property to his son-in-law, Soterro. The transaction was
done without Cabaliw's consent. Prior to the sale, Soterro
already knew that there was a judgment rendered against
his father-in-law but proceeded to buy the property anyway.
When Cabaliw found out, she instituted an action along
with her daughter to recover the properties.
When bilateral contracts are vitiated with vices of consent,
they are rendered
Fernando executed a will, prohibiting his wife Marina from
after Fernando's death, Marina was so overwhelmed with
love that she married another man. Is she entitled to the
legacy, the amount of which is well within the capacity of
the disposable free portion of Fernando's estate?
X and Y, both Filipinos, were married and resided in Spain
although they intend to return to the Philippines at some
future time. They have not executed any marriage
settlements. What law governs their property relations?
Clint, a wealthy landowner suddenly left for abroad leaving
his livestock farm unattended. John, a neighbor of Clint
managed the farm thereby incurring expenses. When Clint
returns, he has the obligation to reimburse John for the
expenses incurred by him and to pay him for his services.
It is based on the principle
.
That is, the happening of the event which constitutes the
condition. In other words, the fulfillment of which will
extinguish an obligation (or right) already existing.
Rongavilla. They borrowed P2,000 from the Rongavillas to
have their rooftop repaired. Later, petitioners went back to
their aunts to have them sign a contract. Taking advantage
of their lack of education, the sisters were made to believe
that such document, typewritten in English, was just for the
acknowledgment of their debt. After four years, petitioners
 asked their aunts to vacate the land subject to litigation
claiming that she and her husband were the new owners.
After verifying with the Registry of Deeds, the aunts were
surprised that what they have signed was actually a deed
of sale. Their land title was cancelled and the ownership
was transferred to their nephews. The land was mortgaged
with the Cavite Development Bank.
Knowing that the car had a hidden crack in the engine, X
Yes, since the defect was sold it to Y without informing the latter about it. In any
not hidden; X knew of it but event, the deed of sale expressly stipulated that X was not
he acted in bad faith in not liable for hidden defects. Does Y have the right to demand
disclosing the fact to Y. from X a reimbursement of what he spent to repair the
engine plus damages?
Rescission (cancellation) of
When the thing deteriorates with the debtor's fault, the
the obligation with
creditor may choose one of the following:
indemnity for damages
This happens when the creditor makes a demand and the
mora solvendi
obligor fails to deliver the thing.
Contracts take effect only between the parties or their
assigns and heirs, except where the rights and obligations
arising from the contract are not transmissible by their
Relativity of contracts. nature, by stipulation, or by provision of law. In the latter
case, the assigns or the heirs are not bound by the
contracts. This is known as the principle of
.
is an essential element of a contract
which is more on the proximate purpose that the
cause
contracting parties have in view at the time of entering into
a contract.
Various stipulations of a contract shall be interpreted
TRUE
together.
within the commerce of
What is the object in a contract of sale?
man
Yes, if Sonny does not pay ,
Sonny borrowed P1,000,000 from Joy and agreed that in
he should sell the house
case of non-payment on the date stipulated, Sonny's
and lot for P1,000,000 to
house and lot would be sold to Joy for the amount of
Joy. The agreement is not
P1,000,000. Is the stipulation valid?
contrary to law.
The law presumes that G
must have received a
G gave Php 100,000 to H who signed a receipt stating:
service from H and that the
"This is to acknowledge payment of G in the amount of
same is lawful. If G claims
Php100,000". G later complains the he receives nothing
otherwise, he must prove
from H for the Php 100,000. Is H bound to return the Php
his allegation that H is
100,000?
bound to return the 100,000
to G.
Void. Lino entered into a contract to sell with Ramon,
undertaking to convey to the latter one of the five lots he
owned, without specifying which lot it was, for the price of
P1 million. Later, the parties could not agree which of five
 lots Lino owned to sell to Ramon. What is the standing of
the contract?
The duty to pay a loan by virtue based on an agreement is
Quasi contracts an example of obligations arising from
.
Tony enters into a contract of sale with Sharon who paid
the purchase of a motorcycle unit. Tony did not deliver the
Sharon
motorcycle unit. Identify the active subject in the statement
as an essential requisite of an obligation.
Tony enters into a contract of sale with Sharon who paid
the purchase of a motorcycle unit. Tony did not deliver the
Tony
motorcycle unit. Identify the passive subject in the
statement as an essential requisite of an obligation.
He can accept all 6,000 A buyer ordered 5,000 apples from the seller at P20 per
apples and pay the seller at apple. The seller delivered 6,000 apples. What are the
P20 per apple. rights and obligations of the buyer?
X bought a land from Y, paying him cash. Since they were
No, after more than 6 years, friends, they did not execute any document of sale. After 7
the action to enforce the years, the heirs of X asked Y to execute a deed of absolute
verbal agreement has sale to formalize the verbal sale to their father. Unwilling to
already elapsed. do so, X's heirs filed an action for specific performance
against Y. Will their action prosper?
consent The following are elements of an obligation, except:
The intention of the parties
In interpretation of contracts, what should be followed? Its
because their will has the
terms or the intention of the parties? Why?
force of law between them.
Tony enters into a contract of sale with Sharon who paid
the purchase of a motorcycle unit. Tony did not deliver the
Obligation to deliver
motorcycle unit. Identify the juridical tie in the statement as
an essential requisite of an obligation.
Ervin can ask for the Ervin sold his Toyota Car to Janice under a written contract
reformation of the contract of sale. What Janice thought Ervin was selling was his
due to the mutual mistake Hyundai Car. Can Ervin ask for the reformation of the
even though Janice agreed contract against the objection of Janice who is agreeable
to receive the Toyota Car. for the sale of the Toyota Car?
Roy and Carlos both undertook a contract to deliver a boat
docked in Subic to Sam in Manila. Before they could
Joint since the conversion deliver it, however, the boat sank in a storm. The contract
of their liability to one of provides that fortuitous event shall not exempt Roy and
indemnity for damages Carlos from their obligation. Owing to the loss of the motor
made it joint. boat, such obligation is deemed converted into one of
indemnity for damages. Is the liability of Roy and Carlos
joint or solidary?
Acts or omissions punished The duty to return a stolen carabao is an example of
by law obligations arising from .
The contract is not valid Facts: The municipal council of Cavite by Resolution No.
because the object or 10, leased to Rojas some 70 or 80 square meters of Plaza
prestation is not within the Soledad, on condition that she pay rent quarterly in
commerce of man, so the advance according to the schedule fixed in Ordinance No.
obligation of Rojas to
restore and deliver the
possession of the land to
the Municipality of Cavite,
which in turn restore to her
the sums received from her
as payment of rentals.
Reformation
No, since the seller owns
no inheritance while his
predecessor lives.
Motorcycle unit
F has no right being a third
person who does not
concern any fulfillment of
the obligation.
Motive
If X has the knowledge that
the boat will be used will
make the sale illegal.
All of the choices
Yes, automatic rescission is
allowed since, having the
character of movables and
consumables, rice can
easily deteriorate.
No, since the donation and
its acceptance are not in a
public instrument.
The original debtor is freed
of liability since novation
took place and this relieved
himof his obligation.
43, series of 1903 and that she obligate herself to vacate
said land within 60 days subsequent to notification to that
effect. Upon such notification, however, she refused to
vacate the land, forcing the municipality to file a complaint
before the CFI to order her to vacate the land. After a
hearing of the case, the CFI dismissed the complaint.
is the remedy allowed
by law by means of which a written instrument is amended
or rectified so as to express or confirm the real agreement
or intention when by reason of mistake, fraud, inequitable
conduct or accident, the intention fails to express such in
agreement or intention.
Can future inheritance be the subject of a contract of sale?
Tony enters into a contract of sale with Sharon who paid
the purchase of a motorcycle unit. Tony did not deliver the
motorcycle unit. Identify the object/prestation in the
statement as an essential requisite of an obligation.
D sold E a parcel of land worth 1M. E failed to pay D. Has
F has the right to have the sale declared void by court on
the ground of absence of cause for non payment of price?
The following are essential elements of a contract, except:
X sold his fishing boat to Y who intends to use the boat for
smuggling. Is the contract of sale illegal?
Architect Velasco designed and supervised the house
construction of Mrs Reyes. The parties failed to agree
beforehand the professional the professional fee of
Architect Velasco. How much is Mrs Reyes bound to pay
Architect Velasco?
X sold Y 100 sacks of rice that Y was to pick up from X's
rice mill on a particular date. Y did not, however, appear on
the agreed date to take delivery of the rice. After one week,
X automatically rescinded the sale without notarial notice to
Y. Is the rescission valid?
Joe and Jane were to marry in 3 months. Meantime, to
express his affection, Joe donated a house and lot to Jane,
which Joe wrote in a letter to Jane. Jane wrote back,
accepting the donation and took possession of the
property. Before the wedding, however, Jane suddenly died
of heart attack. Can Jane's heirs get the property?
Upon the proposal of a third person, a new debtor
substituted the original debtor without the latter's consent.
The creditor accepted the substitution. Later, however, the
new debtor became insolvent and defaulted in his
obligation. What is the effect of the new debtor's default
upon the original debtor?
 Contracts undertaken in fraud of creditors when the latter
TRUE cannot in any other manner collect the claims due them
may be rescinded.
Neither party may recover Under Void contracts, when the act is unlawful but does not
what he has given by virtue constitute a criminal offense at the same time both parties
of the contract. are at fault,
Those contracts where one of the parties is incapable of
Voidable
giving consent to a contract;
All other contracts specially declared by law to be subject
Rescissible
to rescission.
In a contract where both parties are incapable of giving
consent, express or implied ratification by the parent, or
TRUE guardian, as the case may be, of one of the contracting
parties shall give the contract the same effect as if only one
of them were incapacitated.
In case of a divisible contract, if the illegal terms can be
TRUE
separated from the legal ones, the latter may be enforced.
Ratification does not require the conformity of the
TRUE contracting party who has no right to bring the action for
annulment of contracts
Those contracts undertaken in fraud of creditors when the
Rescissible latter cannot in any other manner collect the claims due
them.
The duty to repair damages due to negligence is an
Acts or omissions punished
example of obligations arising from
by law
.
Baldo, a rejected suitor, intimidated Judy into marrying him.
No, since the marriage was
While she wanted to question the validity of their marriage
merely voidable and Judy
two years after the intimidation ceased, Judy decided in the
ratified it by freely
meantime to freely cohabit with Baldo. After more than 5
cohabiting with Baldo after
years following their wedding, Judy wants to file a case for
the force and intimidation
annulment of marriage against Baldo on ground of lack of
had ceased
consent. Will her action prosper?
No, Reformation will be the
remedy because there is
meeting of minds by both If Eden sold to Yvonne a parcel of land but the land already
parties however by mistake has a residential building which is not mentioned in the
the parties true intention agreement, will annulment be the remedy for this?
was not reflected in the
agreement.
Russel owed Mary the sum of P1, 000.00. By mistake,
Russel paid P2, 000.00. Mary has the obligation to return
TRUE
the P1,000.00 excess because there was payment by
mistake.
Jean sold her condominium unit to Jane 'including all its
contents'. In the unit there is an antique chair belonging to
All of the choices
Susan which Susan agreed to sell to Jean. Will the chair
be sold along with the unit?
To return money paid by Below are examples of obligations arising from the law
mistake except:
Those contracts which contemplate an impossible service
TRUE
are inexistent or void from the beginning.
Under rescissible contracts, whoever acquires in bad faith
the things alienated in fraud of creditors, shall indemnify
TRUE the latter for damages suffered by them on account of the
alienation, whenever, due to any cause, it should be
impossible for him to return them.
Contracts that are ratified, where both parties are
FALSE incapable of giving consent to a contract are
unenforceable.
The prescription period to file for action for annulment of
4
contract is years.
FALSE Voidable contracts may not be rescinded.
extinguishes the action to
Ratification
annul a voidable contract
The duty to refund an "over charge" of money because of
solutio indebiti (payment by mistake) or negtiorum gestio
Law
(management of another's property) is an example of
obligations arising from .
The contract of sale is valid,
Jeff sold to Philip his car worth 1M for only Php500,000.
because they have both
There is no question that the purchase price is grossly
consented with the amount
inadequate. Does Jeff have the right to have the sale
at the time they entered into
annulled?
a contract.
motive The following are essential requisites of a contract, except:
An obligation having been annulled, the contracting parties
shall restore to each other the things which have been the
TRUE
subject matter of the contract, with their fruits, and the price
with its interest, except in cases provided by law.
Those contracts that are expressly prohibited or declared
FALSE
void by law are unenforceable.
cleanses the contract from all
Ratification
its defects from the moment it was constituted.
Those contracts entered into in the name of another
person by one who has been given no authority or legal
FALSE
representation, or who has acted beyond his powers are
inexistent or void from the beginning.
contracts which are in
Rescissible
between valid and void.
The action to claim rescission must be commenced within
FALSE
five years.
Contracts which are simulated or fictitious are
Inexistent
.
is an injury suffered by
Lesion one of the parties by virtue of contract that is
disadvantageous to him.
Declares inefficiency which The following are kinds of unenforceable contracts, except:

contract already carries in

itself.
 Payments made in a state of insolvency for obligations to
whose fulfillment the debtor could not be compelled at the
Rescissible
time they were effected, are also
.
A contract which is the direct result of a previous illegal
TRUE
contract is also void and inexistent.
The action for annulment of contracts shall not be
extinguished when the thing which is the object thereof is
FALSE
lost through the fraud or fault of the person who has a right
to institute the proceedings.
These contracts under voidable are binding, unless they
TRUE are annulled by a proper action in court. They are
susceptible of ratification.
Those contracts where the consent is vitiated by mistake,
Voidable
violence, intimidation, undue influence or fraud.
Those contracts which are absolutely simulated or fictitious
TRUE
are inexistent or void from the beginning.
Rescission shall be only to the extent necessary to cover
TRUE
the damages caused.
When the law sets, or authorizes the setting of a minimum
wage for laborers, and a contract is agreed upon by which
TRUE
a laborer accepts a lower wage, he shall be entitled to
recover the deficiency.
Those contracts whose cause, object or purpose is
Inexistent contrary to law, morals, good customs, public order, or
public policy.
Defects on their effects The following are characteristics of void contracts, except:
Contracts which are entered into by guardians whenever
the wards whom they represent suffer lesion by more than
FALSE
one-fourth of the value of the things which are the object
thereof may not be rescinded.
Those contracts which are entered into by guardians
whenever the wards whom they represent suffer lesion by
Rescissible
more than one-fourth of the value of the things which are
the object thereof.
nobody can take the law Under Void contracts, action to declare nullity is necessary
into his own hands because .
When the agreement is not illegal per se but is merely
prohibited, and the prohibition by the law is designated for
TRUE
the protection of the plaintiff, he may, if public policy is
thereby enhanced, recover what he has paid or delivered.