ObliCon Finals

When bilateral contracts are vitiated with vices of consent, they are rendered

Voidable

When the thing deteriorates with the debtor's fault, the creditor may choose one of the following:

Rescission (cancellation) of the obligation with indemnity for damages

This happens when the creditor makes a demand and the obligor fails to deliver the thing.

mora solvendi

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 juridical tie in the statement as an essential requisite of an
obligation.

Obligation to deliver

__________________________ 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.

Reformation

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.

Issue: Is there a presumption of fraud?

Yes, Soterro knew about the decision against Benigno, but proceeded with the purchase.

If Eden sold to Yvonne a parcel of land but the land already has a residential building which is not
mentioned in the agreement, will annulment be the remedy for this?

No, Reformation will be the remedy because there is meeting of minds by both parties however by
mistake the parties true intention was not reflected in the agreement.
X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of
sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale
to their father. Unwilling to do so, X's heirs filed an action for specific performance against Y. Will their
action prosper?

No, after more than 6 years, the action to enforce the verbal agreement has already elapsed.

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 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 _______________________.

Relativity of contracts.

________________ is an essential element of a contract which is more on the proximate purpose that
the contracting parties have in view at the time of entering into a contract.

cause

Jean sold her condominium unit to Jane 'including all its contents'. In the unit there is an antique chair
belonging to Susan which Susan agreed to sell to Jean. Will the chair be sold along with the unit?

All of the choices

Various stipulations of a contract shall be interpreted together.

True

The duty to repair damages due to negligence is an example of obligations arising from
__________________.

Acts or omissions punished by law

Below are examples of obligations arising from the law except:

To return money paid by mistake

Can future inheritance be the subject of a contract of sale?

No, since the seller owns no inheritance while his predecessor lives.

Sonny borrowed P1,000,000 from Joy and agreed that in case of non-payment on the date stipulated,
Sonny's house and lot would be sold to Joy for the amount of P1,000,000. Is the stipulation valid?

. Yes, if Sonny does not pay , he should sell the house and lot for P1,000,000 to Joy. The agreement is
not contrary to law.
Fernando executed a will, prohibiting his wife Marina from remarrying after his death, at the pain of the
legacy of P100 million in her favor becoming a nullity. But a year 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?

No, since such prohibition is authorized by law and is not repressive; she could remarry but must give up
the money.

Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter about
it. In any event, the deed of sale expressly stipulated that X was not liable for hidden defects. Does Y
have the right to demand from X a reimbursement of what he spent to repair the engine plus damages?

Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y.

G gave Php 100,000 to H who signed a receipt stating: "This is to acknowledge payment of G in the
amount of Php100,000". G later complains the he receives nothing from H for the Php 100,000. Is H
bound to return the Php 100,000?

The law presumes that G must have received a service from H and that the same is lawful. If G claims
otherwise, he must prove his allegation that H is bound to return the 100,000 to G.

Roy and Carlos both undertook a contract to deliver a boat docked in Subic to Sam in Manila. Before
they could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall
not exempt Roy and Carlos from their obligation. Owing to the loss of the motor boat, such obligation is
deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary?

Joint since the conversion of their liability to one of indemnity for damages made it joint.

Jeff sold to Philip his car worth 1M for only Php500,000. There is no question that the purchase price is
grossly inadequate. Does Jeff have the right to have the sale annulled?

The contract of sale is valid, because they have both consented with the amount at the time they
entered into a contract.

Facts: The Dela Cruz sisters were the aunts of Dolores 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.

Issue: Was the deed of sale void?

Yes, because there is fraud and absence of consent

Russel owed Mary the sum of P1, 000.00. By mistake, Russel paid P2, 000.00. Mary has the obligation to
return the P1,000.00 excess because there was payment by mistake.

True

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?

All of the choices

The following are essential requisites of a contract, except:

motive

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?

The original debtor is freed of liability since novation took place and this relieved himof his obligation.

The following are elements of an obligation, except:

consent

Demand is not necessary to incur delay when:

Time is the controlling motive

_____________________ extinguishes the action to annul a voidable contract

Ratification

The prescription period to file for action for annulment of contract is ______________years.

Those contracts where the consent is vitiated by mistake, violence, intimidation, undue influence or
fraud.

Voidable

Those contracts that are expressly prohibited or declared void by law are unenforceable.
FALSE

Contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims
due them may be rescinded.

TRUE

In onerous transfer, if there is good faith, the contract may be rescinded.

False

The following are kinds of unenforceable contracts, except:

Declares inefficiency which contract already carries in itself.

_______________________cleanses the contract from all its defects from the moment it was
constituted.

Ratification

ObliCon Q8

_______________________prevent fraud and perjury in the enforcement of obligations depending for

their evidence upon the unassisted memory of witnesses by requiring certain enumerated contracts and
transactions to be evidenced by a writing signed by the party to be charged.

Purpose of Statutes

Contracts which are simulated or fictitious are __________________.

Inexistent

Those contracts which are absolutely simulated or fictitious are inexistent or void from the beginning.

True

Those contracts which contemplate an impossible service are inexistent or void from the beginning.

True

A contract which is the direct result of a previous illegal contract is also void and inexistent.

True
Those contracts whose cause, object or purpose is contrary to law, morals, good customs, public order,
or public policy.

Inexistent

_______________________evidence of agreement and is used to show the intention of the parties.

Written memorandum/note

___________________________means both are at fault.

Pari delicto

ObliCon Quiz 7 (2Takes)

Contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the claims
due them may be rescinded.

TRUE

_____________________ extinguishes the action to annul a voidable contract

Ratification

Ratification does not require the conformity of the contracting party who has no right to bring the action
for annulment of contracts

True

All other contracts specially declared by law to be subject to rescission.

Rescissible

Rescission shall be only to the extent necessary to cover the damages caused.

True

Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be
compelled at the time they were effected, are also ________________________.

Rescissible

_______________________cleanses the contract from all its defects from the moment it was
constituted.

Ratification
In onerous transfer, if there is good faith, the contract may be rescinded.

False

Under rescissible contracts, whoever acquires in bad faith the things alienated in fraud of creditors, shall
indemnify 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.

True

Contracts which are entered into by guardians whenever the wards whom they represent suffer lesion
by more than one-fourth of the value of the things which are the object thereof may not be rescinded.

False

The action for rescission is ____________________; it cannot be instituted except when the party
suffering damage has no other legal means to obtain reparation for the same.

Subsidiary

___________________________is an injury suffered by one of the parties by virtue of contract that is

disadvantageous to him.

Lesion

The prescription period to file for action for annulment of contract is ______________years.

An obligation having been annulled, the contracting parties shall restore to each other the things which
have been the subject matter of the contract, with their fruits, and the price with its interest, except in
cases provided by law.

True

Those contracts where one of the parties is incapable of giving consent to a contract;

Voidable

The action to claim rescission must be commenced within five years.

False

Those contracts undertaken in fraud of creditors when the latter cannot in any other manner collect the
claims due them.
Rescissible

Additional Source Quiz 6

In order to judge the intention of the contracting parties, their contemporaneous and subsequent acts
shall be principally considered

True

The procedure of reformation of instrument shall be governed by _____________________of the

Supreme Court.

Rules of court

Contracts shall be obligatory, in whatever form they may have been entered into, provided all essential
requisites for their validity are present.

True

If the doubts are cast upon the principal object of the contract in such a way that it cannot be known
what may have been the intention or will of the parties, the contract shall be valid.

False

If one party was mistaken and the other acted fraudulently or inequitably in such a way that the
instrument does not show their true intention, the former may ask for the reformation of the
instrument.

True

When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the
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 ___________________.

Reformed

All other contracts where the amount exceeds five hundred pesos must appear in _______________,
even private one.

Writing

All other contracts where the amount does not exceed five hundred pesos must appear in writing.

False
ObliCon Quiz 06

If the doubts are cast upon the principal object of the contract in such a way that it cannot be known
what may have been the intention or will of the parties, the contract shall be null and void.

True

The usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a
contract, and shall fill the omission of stipulations which are ordinarily established.

True

If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states
that the property is sold absolutely or with a right to repurchase, __________________________of the
instrument is proper.

Reformation

Contracts of Adhesion shall be resolved against the party who prepared the contract and in favor of the
one who merely adhered to it.

True

Under form of contracts, when the law requires that a contract be in some form in order that it may be
valid and enforceable or that a contract be proved in a certain way, that requirement is
________________and indispensable.

Absolute

When one of the parties brought in action to enforce the instrument, he cannot subsequently ask for its
reformation.

True

If the law requires a document or other special form, as in the acts and contracts enumerated in the
contracts must appear in public document, the contracting parties may _____________________each
other to observe that form, once the contract has been perfected.

Compel

The following are reasons to annul a contract when it has prevented the meeting of the minds of the
parties, except:

Equitable Conduct

The particular motive of the parties entering into a contract are the same from the cause thereof.

False
In impossibility of things and services, the impossibility must be actual and contemporaneous with the
making of the contract and not subsequent.

True

Absence of cause and unlawful cause produces no effect whatever. The cause is unlawful is it is in
contrary to law, morals, good customs, public order and public policy

True

Acceptance made by a letter or telegram does not bind the offerer except from the time it came to his
knowledge. The contract in such case is presumed to have been entered in the place where the offer
was made.

True

If the debtor knew the impossibility of things and services, he will be liable for damages.

True

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.

Fraud

The following are impossible things except:

d. None of the choices

The following are the requisites of consent, except:

Impaired

The object of the obligation and object of the contract created thereby need not be identical.

False

Although the cause is not stated in the contract, it is not presumed to that it exists and illegal.

False
The following may not be the objects of a contract except:

a. Within the commerce of man

The following may not be the objects of a contract except:

Within the commerce of man

_____________________ contracts are essentially agreements to give donations.

Gratuitous

_______________________is the thing, right or service which is the subject matter of the obligation
arising from the contract

Object

_____________________________of the law excuses no one from compliance therewith

Ignorance

A qualified acceptance constitutes a counter offer.

True

_____________________ does not affect the validity of the contract.

Motive

The following cannot give consent to a contract except:

Insane during lucid interval