1.

This means that the contract must bind both contracting parties, its validity or compliance
cannot be left to the will of one of them. Mutuality of contracts
2. This means that contracts take effect only between the parties, their assigns and heirs.
Relativity of contracts
3. The following persons cannot give consent to a contract, except one: deaf mutes (demented
persons, unemancipated minors, insane)
4. It is a kind of contract that is perfected by the delivery of the thing subject matter of the
contract. Real Contract
5. It includes all the steps taken by the parties leading to the perfection of the contract.
Negotiation
6. These refer to the particular stipulations, clauses, terms, or conditions established by the parties
in their contract, like conditions, period, interest, penalty, etc., therefore, they exist only when
they are expressly provided by the parties. Accidental elements
7. It is a purely personal or private reason which a party has in entering into a contract. It is
different from the cause of the contract. Motive
8. The stage when all the essential requisites of a valid contract are present. When the parties have
come to a definite agreement, or meeting of the minds regarding the subject matter and cause
of the contract. Birth
9. This refers to one that is committed by one (1) party before or at the time of the celebration of
the contract to secure the consent of the other. Causal Fraud
10. It is the essential reason or purpose which the contracting parties have in view at the time of
entering into the contract. Cause
11. It is the stage when the parties have performed their respective obligations under the contract.
Termination
12. The following are the vices of consent, except one: incidental fraud (error, violence, causal
fraud)
13. It refers to those which are presumed to exist in certain contracts unless there is a stipulation to
the contrary. Natural Elements
14. It means that the contracting parties may establish such stipulations, clauses, terms, and
conditions as they may deem convenient. Freedom to contract
15. It refers to neglect or failure to communicate or disclose that which a party to a contract knows
and ought to communicate constitutes concealment. Fraud by concealment
16. It is the subject matter of a contract. Object
17. It means that obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith. Obligatory force of contracts
18. It is the act of deliberately deceiving others, by feigning or pretending by agreement, the
appearance of a contract that is either non-existent or concealed. Simulation of contracts
19. It is a stipulation deliberately conferring a favor upon a third person who has a right to demand
its fulfillment, provided he communicated his acceptance to the obligor before its revocation by
the obligee or the original parties. Stipulation pour autrui
20. It is the legal tie or relation itself that exists after a contract has been entered into. Obligation
21. It means that 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 keeping with good faith, usage or law.
Consensuality of contracts
22. This exists when one of the contracting parties is compelled by a reasonable and well-grounded
fear of imminent danger and grave evil upon his person, or property, or upon the person or
property of his spouse, descendants, or ascendants, to give his consent. Intimidation
23. Which of the following is not an essential element of contracts? Contracts
24. This exists when a person takes improper advantage of his power over the will of another,
depriving the latter of reasonable freedom of choice. Undue influence
25. It refers to that which requires compliance with certain formalities prescribed by law, such
prescribed form being thereby an essential element thereof. Examples: Donation of real
property. Formal Contract
1. A certain length of time which determines the effectivity or the extinguishment of obligations.
Period
2. It is a juridical relation arising from lawful, voluntary and unilateral acts based on the principle
that no one should unjustly enrich himself at the expense of another. Quasi-contract
3. It is the delay on the part of the debtor to fulfill his obligations to give or to do. Mora solvendi
4. It is the right or power of a person (the creditor) to demand from another (debtor), as a definite
passive subject, the fulfillment of the latter’s obligation to give, to do, or not to do. Personal
right
5. It is one which is attached to a principal obligation, and therefore, cannot stand alone.
Accessory obligation
6. The following are the elements of an obligation, except: consideration
7. It pertains to the right of the creditor to demand the exact performance of the contract. Specific
performance
8. The following elementsdfbshs
9. It is an accessory undertaking attached to an obligation to assume greater liability in case of
breach. Penal clause
10. In an alternative obligation, the right of choice generally belongs to whom? Debtor
11. It is the degree of diligence required when neither the law nor contract stipulates the type of
diligence to be observed. Ordinary diligence
12. Iya and Betty owed Jun P500,000.00 for advancing their equity in a corporation they joined as
incorporators. Iya and Betty bound themselves solidarily liable for the debt. Later, Iya and Jun
became sweethearts so Jun condoned the debt of P500,000.00. May lya demand from Betty
P250,000.00 as her share in the debt? No, because in a solidary obligation, the remission of the
whole obligation obtained by Iya does not entitle her to reimbursement from Betty.
13. This pen—Specific; the sum of P1,000.00—Generic; land with a title No. 12345—Specific; a 1995
toyota car—Generic; the watch I am wearing—specific
14. Ellise and McCoy got engaged on August 5, 2021. they decided to celebrate their marriage on
November 5, 2021. they ordered a wedding cake from ABC cakes and pastries for the wedding
on November 5, 2021. on November 5, 2021, the wedding cake was not delivered by ABC cakes
and pastries. Alice and McCoy filed a complaint against ABC cakes and pastries for damages due
to delay. ABC cakes and pastries on the other hand denied liability on the ground that there was
no demand made by the couple, hence, they could not be considered in delay. who between the
two parties is correct? Ellise and mccoy's claim is correct because there is no need for a
demand since time is of the essence.
15. It is a future and uncertain event, upon the happening of which, The effectivity or
extinguishment of an obligation (or right) subject to it depends. Condition
16. In this source of obligation, the consent of the debtor is required. Contract
17. In this kind of obligation, there is more than one prestation but the fulfillment of one is
sufficient to extinguish the obligation. Alternative obligation
18. “I will pay you P10,000.00 if it will not rain for one year in the Philippines. this is an example of
what condition? Physically impossible condition
19. It is one in which the acquisition of rights depends upon the happening of an event that
constitutes the condition. Suspensive condition
20. A promised to give B P1,000,000.00 if B passes the bar. Pending the results of the bar, A’s money
is destroyed by fire, without the fault of A. When B passed the bar, does a still have to give him
P1,000,000.00? yes, because money is a generic thing
21. An obligation where on debtor can be made to pay the entire obligation subject to
reimbursement. Solidary obligation
22. It is defined as a conscious and intentional design to evade the normal fulfillment of existing
obligations. Fraud
23. A obliged himself to deliver a Toyota vios car color red with plate number 1234 to B, if B will kill
X. what is the status of the obligation? The obligation is void because the condition is contrary
to law.
24. Which of the following conditions is valid?
a. Suspensive and potestative on the part of the debtor
b. Potestative on the part of a third person
c. Potestative on the creditor
d. Potestative on the part of the debtor and resolutory
25. When only one prestation has been agreed upon, but the obligor may render another
substitution, the obligation is called: facultative
26. It depends on change, hazard or the will of a third person. Casual condition
27. The promise of the debtor to pay when he wants to is valid. False. The condition is purely
potestative on the part of the debtor.
28. In obligation with a suspensive condition to deliver a specific thing, when The thing is improved
by nature or by time, the improvement shall inure the whose benefit? The creditor
29. August borrowed P500,000.00 from David. They agreed that the whole loaned amount will be
paid on July 2, 2020. before the end of 2019, David, in dire need of money for the medication of
his mother, extra judicially demanded from August the 500,000.00 loaned. August, however,
refused to pay contending that the agreed date for the payment of the loan has not yet arrived.
David claims that August is already in delay in view of his demand, and thus, is also claiming for
damages. Is David correct? No, David is not correct because the obligation of August it's not
yet due thus there is no delay.
30. This takes place when something is received when there is no right to demand it, and it was
unduly delivered through mistake. Solutio Indebiti
31. The owner of the house request his neighbor to take care of his house while he is on vacation,
the obligation of the owner of the house to reimbursed his neighbor for the necessary and
useful expenses, as well as damages which the neighbor may have suffered in saving the house
from fire, arises from: contracts
32. These are spontaneous products of the soil, and the young and other products of animals.
Natural fruits
33. In an alternative
34. This promissory note: “We promise to pay A, B, and C the sum of p18,000.00” signed X, Y and Z.
Which of the following statement is correct? Z is obliged to pay A, B and C, P18,000.00
35. D obliged to give C a specific watch, a specific ring, or a specific bracelet. the parties agreed that
C will have the right to choose the thing which will be given to him. Before C could make his
choice, the watch and ring are lost through D’s fault, successively. what is the right of C? C may
 choose the delivery to him of the bracelet, or the price of the watch or the price of the ring
plus damages
36. The debtor promises to give the creditor his 3- story house in Camellia, Tagum City if the
creditor will marry X. what will happen to the obligation if the 3-storey house was destroyed by
typhoon without the fault of the debtor? the obligation is extinguished
37. Demand is not necessary to incur delay when: Time is the controlling motive
38. if a person commits a crime, he is liable for these civil obligations, except: substituted
performance (Restitution, reparation, indemnification of damages)
39. “I'll give you P1,000,000.00 if I can sell my land”. the obligation is void because the condition is:
purely potestative on the part of the debtor
40. D agreed to pay C 10,000 in four equal monthly installments. It was agreed further that D will
pay on a certain date the full amount of 10,000. What is the obligation? Indivisable
41. It is the attention or care required of a person in a given situation. Diligence
42. Layla promised to give Miya a commercial building in Taguig if Miya passes the CPA board exam
on October 2020. on October 2020, Miya passed the CPA board exam. However, due to a love
triangle involving Layla and Miya, Layla Refused to deliver the promised commercial building on
2020. assuming there is delay on the part of Layla, which of the following is/are Miya entitled to
on 2021? Rental income beginning October 2020, damages, the delivery of the promised
building
43. It depends partly on the will of the debtor or creditor, and partly on chance, hazard or will of a
third person. Mixed condition
44. The following are the elements of fortuitous event, except: The cause of the unforeseen and
unexpected occurrence is dependent of human will.
1.D borrowed the car of C. On the due date of the obligation, D told C that the car was stolen and that
he was not at fault. Is D liable?
-Yes, because he is presumed to be at fault unless he gives proof that he was not at fault.
2.Obligations are extinguished by:
-payment or performance
-the loss of the thing due
-the condonation or remission of debt
-the confusion or merger of the rights of creditor and debtor
-compensation
-novation
3.The debtor offers, and the creditor accepts, a third person who consents to the substitution and
assumes the obligation.
-Delegacion
4. S promises to deliver 100 cavans of rice to B. The 100 cavans of rice which S intended to deliver were
lost in a flood. Is the obligation extinguished?
-No, because the prestation consists in the delivery of a generic thing. No, because the cavans of palay
may be replaced by S.
5.As a general rule, payment of debts in money shall be made in the currency which is:
-That currency which is stipulated by the parties.
6.Which of the following is not correct?
>When the oblige accepts the performance, knowing its incompleteness or irregularity, and without
expressing any protest or objection, the obligation is deemed fully complied with
>A dept shall not be understood to have been paid unless the thing or service in which the obligation
consists has been completely delivered or rendered, as the case may be
>If the obligation has been substantially performed in good faith, the obligor may recover as though
there had been a strict and complete fulfillment, less damages suffered by the obligee
>None of the given choices
-The creditor is bound to accept payment or performance by a third person who has no interest in the
fulfillment of the obligation.
7.Consignation alone shall produce the same effect in the following cases, except:
-When he is capacitated to receive the payment at the time is due.

8.It is the manifestation by the debtor of a desire to comply with or to pay an obligation.
-Tender of payment
9.D owes C 10,000, for which D executed a negotiable promissory note in favor of C. C indorsed the note
to E who, in turn, indorsed it to F. Now F bought goods from the store of D. Instead of paying cash, F
indorsed the promissory note to D. Is the debt of D extinguished? If yes, what mode of extinguishment
of obligation is applicable in this case?
-Yes, it was extinguished by the confusion or merger of the rights of D.
10.The following are exceptions to the rule that the loss of a specific thing without the fault of the
debtor and without delay and without delay extinguishes the obligation except one:
>When the stipulation so provides
-When the obligation to deliver specific thing arises from quasi-delict
>When the nature of the obligation requires the assumption of risk
>When the law so provides
11.It is the right of the third person who pays the creditor without the knowledge or consent of the
debtor.
-Right of beneficial reimbursement

12.It is the deposit to the court of the debt due after the refusal of the creditor to accept payment.
-Consignation

13.Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the
creditor. Such benefit to the creditor need not be proved in the following cases, except:
>Estoppel
>Subrogation
>Ratification
-Waiver

14.A debt shall not be understood to have been paid unless the thing or service in which the obligation
consists has been completely delivered or rendered, as the case may be.
-Principle of integrity

15. Payment shall be made to the following persons, except:

-Any person
>Creditor’s successor in interest
>Creditor
>Any person authorized to receive it

16. It is the transfer of all rights of the creditor to a third person who substitutes him in all of the said
rights.
-Subrogation

17.Which of the following statements is false?

>In payment by cession, the debtor is insolvent or experiencing financial difficulties
>Payment by cession is a substitute form of payment
>Payment by cession involves two or more creditors
-Payment by cession involves only one property of the debtor

18.It is the meeting in one (1) person of the qualities of creditor and debtor with respect to the same
obligation.
-Confusion or merger of rights

19. It is when a property is alienated to the creditor which constitute as an accepted equivalent in
satisfaction of a debt in money.
-Dation in payment
20.The initiative for the change does not come from and may even be made without the knowledge of
the debtor, since it consists of a third person’s assumption of obligation.
-Expromision
21.It is the right of the third person who pays the creditor with knowledge and consent of the debtor.
-Right of subrogation
22. Means not only the delivery of money but also the performance, in any other manner, of an
obligation.
-Payment
23.Compensation cannot take place, except:
>When one debt arises because of a claim for support due to gratuitous title
-When one debt arises from bank deposit
>When one debt arises from the obligation of a bailee in commodatum
>When one debt arises from the obligations of a depositary
24.There being no express stipulation and if the undertaking is to deliver a determinate thing, the
payment shall be made:
-Wherever the thing might be at the moment the obligation was constituted
25.This takes place when the obligor dies or becomes physically incapacitated to perform the obligation.
-Physical impossibility