OBLICON MCQ 5. Through insidious words or machinations, A was able to 1.

When the debtor binds himself to pay when his means permit him to do so, the obligation is: a. Conditional b. Pure c. Simple d. With a Period ANSWER: D induce B to enter into a contract which without them B would not have agreed to it. There is: a. Undue Influence b. Fraud c. Mistake d. Misrepresentation ANSWER: B

2. Contracts which cannot be sued upon unless ratified, thus it is as if they have no effect yet are: a. Voidable b. Rescissible c. Void d. Unenforceable ANSWER: D

6. "A sells to B 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 c. Casual Condition d. Resolutory Condition ANSWER: B

3. If the obligation of the debtor is "I will pay you my debt after I have arrived from abroad," this is a. Unenforceable b. With a Period c. Void d. Conditional ANSWER: D

7. It is a mode of extinguishing an obligation when two persons in their own right are creditors of each other. a. Confusion b. Reformation c. Compensation d. Novation ANSWER: C

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 c. Novation d. Remission ANSWER: B

8. A contract is in the stage of conception when: a. There is meeting of the minds. b. Negotiations are in progress. c. The parties come to an agreement. d. The contract is perfected. ANSWER: B

9. If the obligor binds himself to perform his obligation as soon as "he shall have obtained a loan" from a certain bank, this obligation is: a. With a Term b. Conditional c. Suspensive d. Resolutory ANSWER: B 14. Which of the following contracts is not void ab initio? a. Those whose object is outside the commerce of men 10. Contracts entered into in a state of drunkenness or during a hypnotic spell are: a. Void b. Valid c. Voidable d. Legal ANSWER: C 15. Rescission of contract can take place in this case a. When the thing which is the object of 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 to restore c. When the party seeking resolution can perform only as to part and as to remainder d. When the seller cannot return the installments paid to him by the buyer ANSWER: B ANSWER: D b. That whose object did not exist at the time of transaction c. That which contemplates an impossible service d. That which is undertaken in fraud of creditors ANSWER: B a. Marriage between first degree cousins b. Contract of sale between two insane persons c. Contract of sale between husband and wife d. Donation between husband and wife

11. Delay in the giving or delivering of a thing a. Mora solvendi ex re b. Mora solvendi ex persona c. Mora accipiende ex re d. Mora accipiende ex persona ANSWER: A

12. Which of the following statements is false? a. Obligations to give definite things and those that are not susceptible of partial performance shall be deemed divisible. b. Execution of a certain number of days of work shall be divisible. c. Accomplishment of work by metrical units are divisible d. An obligation to pay a certain amount in ten annual installments is divisible. ANSWER: A 13. This contract is without effect unless ratified:

16. A defective contract where damage or lesion is essential a. Rescissible b. Voidable c. Unenforceable d. Void ANSWER: A

17. An instrument may be reformed d

ANSWER: B a. Simple donations inter vivos wherein no condition is imposed b. Wills c. When the instrument does not express the true intention of the parties due to mistake d. When the real agreement is void ANSWER: C Question: Why is it important contractsbe faithfully fulfiiled?? that obligation in

18. Three of the following contracts are void. Which one is not? a. Oral contract of partnership of three partners and capital contribution is more than P3,000 in cash b. Written contract contemplating impossible services c. Oral contract of partnership where real estate is contributed as capital d. Agent's authority to sell land is given orally. ANSWER: A

Answer: Laws are enacted to have order (or require the performance of a particular action to achieve the same) Since the terms and conditions of a contract are considered the governing laws between parties, it is necessary to faithfully fulfill one's obligation, that is, to avoid the occurrence of dispute. Hence, why do we have to fulfill 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 obligations 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 will 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 just rescind or refuse to comply. Even without knowledge of law, one will not just back out from the perfected sale. Then, after the perfection of the contract of sell; unknowingly, they will go on to consummate the same. The buyer will hand the money and the seller, in return, will hand over the pandesal. A clear example of reciprocal obligations, isn't? If the money given is more than the price of the pandesal, 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 to return what is not due him. Likewise, if what was delivered to the buyer is more than what he paid for, he will return the same under the same principle, creating an implied obligation to return. In a simple, but very common, transaction, the parties are not aware that they are applying the basic principles of law on obligations and contracts. They might not be well versed, or even, have not 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 daily activities, we apply it unknowingly, but instinctively, depending on one's value.

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 a. There is novation b. There is delegation if debtor is released c. There is subrogation d. There is expromission if debtor is released ANSWER: D

20. Which of the following is not an element of legal compensation? a. Debts to be compensated are due and demandable b. There is controversy or adverse claim over any debts to be compensated c. There are two or more debts of the same kind d. There are two or more persons who are creditor or debtors of each other.