OBLIGATIONS AND CONTRACTS Multiple Choice Questions in Obligations and Contracts, 1 It is the juridical relation resulting from lawful, voluntary, and unilateral acts by virtue of which the parties become bound to each other to the end that no one shall 'be unjustly enriched or benefited at the expense of anather. a. Agreement ’,Vinculum juris Contracts This takes place when something is received when there is no right to demand it, and it was unduly delivered thru mistake b. Negotiorum Gestio .Vinculum juris 6. Prestation This happened when the creditor make a demand and the obligor falls to deliver the thing sie Mora accipiendi 6. Compensatio morae Demand is not necessary to incur delay when’ ‘a. Creditor refuses the performance without just cause, b. The debtor is guilty of non: performance. 6. Ifthe obligation bears interest In what instance may we consider that there is no delay? b. In positive obligation ‘In abligation arising from crime 6. In natural obligation In Accion subrogataria the creditor may exercise all ofthe rights and bring all of the actions which the debtor may have against third persons if a. Hf the account is personal The dabror's acts are fraudulent The debtor has performed an act subsequent to the contract, giving advantage to other persons In Accion Pouliana Rescission, which Involves the right of the creditor to attack ‘or impugn by means of rescissary action any act of the debtor which is in fraud and to the prejudice of his rights as creditor provided: a. The debt is due and demandable b. There isa fallure of the debtor 10 collect his own debt from 3rd persons either through malice or negligence c__ The dobtor's assets are insufficient Ie causes the extinguishment or loss of rights already acquired upon the fulfilment of the condition, that is, he happening of the event which constitutes the condition, In other words, the fulfillment of which will extinguish an obligation (or right) already existing. 2 Concition subsequent b. Suspensive © facultative condition positive condition ‘When the thing dateriorates with the debtor's foul, the crasitor may choose one of the following: Mutual restitution Suffer the deterioration of the thing4d. Institute an action for negligence. 10. Its a future and certain event upon the arrival of which the obligation (or right) subject to it either arises or is terminated a. Fortuitous events b. Condition 6 Date and time 1. When the debtor binds himself to pay when his ‘means permit him to do so, the obligation ts: 2. Conditional b. Pure «Simple With a Period ANSWER: D 2.Contracts which cannot be sued upon unless ratified, thus itis as if they have no effect yet are: a. Voidable be. Rescissible Void d. Unenfarceable ANSWER: D 3. If the obligation of the debtor is"! will pay you my debt ofter I have arrived from abroad,” this fs a. Unenforceable b. With a Period Void d. Conditional ANSWER: 4. When the characters of the creditor and the debtor are merged in one and the same perton, there is extinguishment of the obligation by a. Compensation b. Merger of Rights «Novation 4. Remission ANSWER: B 5. Through insidious words or machinations, A was ‘able t0 Induce B to enter into a contract which without them B would not have agreed to it. There iss a. Undue Influence b. Fraud . Mistake 4. Misrepresentation ANSWER: B 6. "A sells to 8 his lot and house in the city if A decides to transfer and live In the countryside" is an example of: a. Mixed Condition b. Potestative Condition «. Casual Condition 4. Resolutory Condition ANSWER: B7. It is a mode of extinguishing an obligation when two persons in thelr own right are creditors of each other. a. Confusion b. Reformation ©. Compensation d. Novation ANSWER: ¢ 8. A contract is in the stage of conception when: ‘8. There is meating of the minds. b, Negotiations are in progress. ¢. The parties come to an agreement, d. The contract is perfected, ANSWER: B 9. If the obligor binds himself to perform his obligation az soon as “he shall have obtained a loan" from a certain bank, this obligation is: a. With a Term b. Conditional ©. Suspensive d. Resolutory ANSWER: B 10, Contracts entered into in a state of drunkenness or during @ hypnotic spel are: a. Void bs. Valid ©. Voidable d. Legal ANSWER: C 1. When the debtor binds himself fo pay when his ‘means permit him to do so, the obligation is: a. Conditional b.Pure c. Simple 4d. With @ Period ANSWER: D 2. Contracts which cannot be sued upon unless ‘atiied, thus its as i they have no effect yet are: a. Volaaoie b. Rescissble ©. Void 4. Unentorceale ANSWER: D 3. I the obligation of the debtor is "I will pay you my debt after | have arrived from abroad,” this Is a. Unenforceable b. With a Period ©. Vola . Conditional ANSWER: D 4. When the characters of the creditor and the debtor are merged in one and the same person, there is extinguishment of the obligation by: a. Compensation'b, Merger of Rights cc, Novation Remission ANSWER: B 5. Through insidious words or machinations, A was able fo induce & fo enter into a contract which without them 8 would not have agreed to It There is: 2. Unave Intivence Fraud . Mistake G. Mistepresentation ANSWER: B 6.°A sells fo B his lot and house in the city if A decides fo transfer and live in the countryside” Is an example of @. Mixed Condition ..Potestative Conaition ¢, Casual Condition 4. Resolutory Conaiiion ANSWER: B 7. It is a mode of extinguishing an obligation when two persons in their own right are creditors of each other. @. Confusion b. Reformation ¢. Compensation . Novation ANSWER: C 8. A contract isin the stage of conception when: «a. There is meeting of the minds. b. Negotiations are in progress. ¢. The parties come to an agreement. d. The contract s perfected. ANSWER: 8 9. If the obligor binds himself to perform his ‘obligation as soon as “he shall have obtained a Joan" from a certain bank, this obligation is: With @ Term Coneitional Suspensive Resolutory ANSWER: B 10, Contracts enlered into in a state of drunkenness or during hypnotic spell are: a. Voi bb. Volie ¢. Voldable d. Legal ANSWER: C 11. Delay in the giving or delivering of a thing a. Mora solvendi ex re b, Mora solvendi ex persona c. Mora acciplende ex re d. Mora accipiende ex persona ANSWER: A 12, Which of the following statements is false?@. Ovligations fo give definite things and those that are not susceptible of porilal performanc: shall be deemed civisibie, 'b. Execution of a certain number of days of work, shall be divisible. c. Accomplishment of work by metrical units are Givisible @. An obligation to pay @ certain amount in ten ‘annual instalments Is divisible, ANSWER: A 13. This contract is without effect unless ratfied: @. Marriage between fist degree cousins b. Contract of sale between two Insane persons c. Contract of sale between husband and wite Donation between husband and wite ANSWER: B 14, Which of the following contracts is not void ab Initio? 4. Those whose object Is ouside the commerce ofmen 'b. That whose object aid not exist at the time of transaction . That which contemplates an impossible service 4. That which Is undertaken in fraud of crecitors ANSWER: D 15. Rescission of contract can fake place in this case @. When the thing which is the object ot the contract Is legally In the possession of a third person who acted in bad faith b. When he who demands rescission can return whatever he may be obliged fo restore c. When the party seeking resolution can perform only 08 to part and as fo remainder d. When the seller cannot return the Installments paid to him by the buyer 16, A defective contract where damage or lesion is essential «a. Rescissible b. Voiganle ¢. Unenforceable 4. Vola ANSWER: A 17. An instrument may be reformed d @. Simple donations inter vivos wherein no conaition is imposed bb. Wis ¢. When the Instrument does not express the true intention of the parties due to mistake 4d. When ihe real agreement is volo ANSWER: C 18. Three of the following contracts are void. Which one Is not? @. Oral contract of partnership of three pariners ‘and capital contribution is more than P3,000 in cosh b. Wiitien contract contemplating Impossible ¢. Oral contract of partnership where real estate | contiibuted as capital 4. Agent’ authority to sell land Is given orally. ANSWER: A19. When a third person assumes the payment of the obligation even without the knowledge and consent of the debtor but with the consent of the creditor @. There is novation There Is delegation It debtors released cc There is subrogation G. There Is expromission if debtor Is released ANSWER: D 20. Which of the following is not an element of legal compensation? . Debts to be compensated are due and Gemandable bb. There is controversy or adverse claim over any Gebts fo be compensated cc There are two or more debts of the same kind G. There are two or more persons who ore crecitor or debtors of each other. ANSWER: B Question: Why is it important that obligation in Contractsbe faithfully fulfiled?? Answer: Lows are enacted to have order (or require the performance of a particular action to achieve ine same) since the terms and conditions of a contract are considered the governing laws between parties, tisnecessary to faithfully fuifll one’s abigation, that is, 10 avoid the occurence of cispute. Hence, why do we have fo fulfil our obligations, that is to achieving order between the parties to the contract. Question: How do you apply the laws on obligations and contracts to everyday activities and business ‘dealings? Answer: We apply laws on abjigafions and contracts unconsciously to our daily activities. (One will not notice that in performing a simple common task you have applied several principles on obligations and contracts. Like, for example, buying a piece of pandesal, the buyer wil offer to buy and the seller will accept. At this point, once the seller and buyer agrees to the object and price, and their minds have met, each of them will not lust rescind or refuse to comply. Even witnout knowledge of law, one will Not just back oUt Mom the perfected sale. Then, after the perfection of the contract of sell unknowingly, they wil go on fo consummate the same. The buyer wil hang the money and me seller, in retum, will hand over the pandesal. A Clear example of reciprocal obligations, Isnt? It the money given is more than the price of the andesal, the seller will give the change. That is because he knows no one should be enriched at the expense of another, hence, he has the obligation fo return what is not due him. Likewise, It what was delivered fo the buyer Is more than what he paid for, ne will return the same under the some principle, creating an impiec obiigation to return. Ina simple, but very common, fransaction, the patties are not aware that they are applying the basic principles of law on obligations “and contracts, They might not be well versec, or even, have nat had any formal education, yet they apply these simple principles of law unconsciously. Thus, If you ask: how we apply laws on obligations and contracts on our dally activites, we apply it unknowingly, but instinctively, depending on one's valve.