CE LAW- Part 1 Questions same may be sold by the creditors to satisfy their

credits.
CHAPTER 1
OBLIGATION-a juridical necessity to give; to do or FACULTATIVE OBLIGATION- Only one prestation
not to do is due but the obligor or debtor may substitute
OBLIGARE- Latin word; bind through giving; doing another in lieu of the prestation due.
or not doing something BY LOSS OF THE THING- When the obligation
CONTRACT- the meeting of minds between two consist of doing something, there is a loss when the
persons whereby one binds himself with respect to prestation becomes legally or physically impossible.
the other to give something or render some BY COMPENSATION- Takes place when two or
services. more persons, in their own rights are creditors and
Two Kinds of Quasi-Contracts debtors to each other.

1. Negotorium gestio
2. Solutio Indebiti CHAPTER 2
1. Which of the following is NOT necessary for a
CRIMES OR DELICTS- Acts or omissions contract to exist?
punishable by law are better known as _____, lie a. Meeting of the minds
homicide or damage to property b. An object or service to be given
c. A legal tie between the parties
ARTICLE 1163- “Every person obliged to give
d. A third-party witness
something is also obliged to take care of it with the
diligence of a good father of the family unless the 2. If two parties agree to something but do not
law or stipulation of the parties requires another intend to create a legal obligation, what does this
standard of care.” result in?
a. A valid contract
OBLIGATION WITH A PERIOD- one in which a
b. A void contract
day certain has been fixed for its fulfillment.
c. An agreement but not a contract
Types Of Conditional Obligations d. A breach of contract

1. Suspensice Condition 3. What happens when the object or purpose of a

2. Resolutory Condition contract is illegal?
a. The contract becomes void.
ALTERNATIVE OBLIGATION-The choice may be b. The contract is enforced with penalties.
granted to the oblige or creditor. c. The contract continues as long as both parties
agree.
DIVISIBLE OBLIGATION- One capable of being
d. The contract requires renegotiation.
performed partially
4. In which stage of a contract are the terms and
INDIVISIBLE OBLIGATION- No partial
conditions fully implemented?
performance is permitted.
a. Preparation
EXPROMISION - third person pays the creditor on b. Perfection
its own accord even without the knowledge and c. Termination or consummation
permission of the debtor. d. Negotiation

DELIGACION – the debtor ask the creditor the 5. Which of the following describes a real contract?
permission for a third party to pay. a. It is perfected by mere consent.
b. It is finalized by delivery of the object.
BY PAYMENT OR PERFORMANCE- This mode c. It is verbal and informal.
consist of not only the delivery of money but also d. It is only used for personal services.
the performance of obligation in any other manner.
PAYMENT BY CESSION- Assignment of all
properties of the debtor to his creditors in order, the
6. What is a contract contrary to public morals or 13. Refers not essentially to peace and order but
good customs? also to existing institutions of a people, like
a. A contract for selling goods. peaceful means of enforcing rights or grievances.
b. A contract where one party harms societal a. Contract b. Public Policy
values. c. Stipulations d. Public Order
c. A contract involving a mutual agreement for
service.
d. A contract for renting a property. 14. Are those rights relating to immovable
properties, i.e. land and buildings, like the right
7. If one party has an obligation and the other does belonging to a mortgagee or lessee of a piece of
not, what type of contract is this? land.
a. Bilateral contract a. Public Policy b. Real Rights
b. Unilateral contract c. Contracts d. Consensual Contracts
c. Consensual contract
d. Real contract
15. Which is not an example of intransmissible
rights and obligations?
8. Which of the following contracts would violate a. By Law b. By Contracts
freedom to contract? c. By Stipulations d. By Nature
a. A contract that is contrary to public policy.
b. A contract with fair terms agreed upon by both
parties. 16. The rule is that only the parties to the contract
c. A verbal agreement for a simple sale. and their assigns and heirs are bound thereto
d. A contract for services with clear terms. unless the rights and obligations arising therefrom
cannot be transferred to the heirs.
9. What happens if one party refuses to perform
their obligation under a perfected contract? a. Parties bound under the contract, exception
a. The contract becomes void. b. Third parties interfering in the contract.
b. The other party has the right to sue for c. By Stipulations
enforcement. d. Protection to creditors
c. The contract automatically terminates.
d. The terms of the contract must be renegotiated.
17. Where a stranger to a contract becomes liable
10. What type of contract does NOT require words,
for damages.
whether written or spoken?
a. Stipulations in favor of non-parties to the contract
a. Implied contract
b. By Law
b. Express contract
c. Contracts creating real rights
c. Nominate contract
d. Third parties interfering in the contract.
d. Consensual contract

18. Contracts are perfected by mere consent, and

11. It refers to the higher goals of the good of all.
from that moment, the parties are bound not only
a. Contract b. Public Policy
for the fulfillment of what has been expressly
c. Stipulations d. Public Order
stipulated but also for the consequences
a. Real Rights
12. The law gives equal standing or treatment upon b. Real Contracts
the parties such that the validity or compliance with c. Consensual Contracts
the contract cannot be left to the sole will of one of d. Stipulations
them.
a. Consensual Contract
19. It means pledge and commodatum.
b. By Law
a. Real Rights b. Real Contracts
c. Equality of parties under the contracts
c. Consensual Contracts d. Stipulations
d. Equity of parties under the contracts
20. It is better known as pour autri FALSE- Fraud at or before the perfection of
contract (dolo causante) does not cause the
a. Real Rights b. Real Contracts
invalidity of the contract.
c. Consensual Contracts d. Stipulations
FALSE- Fraud after perfection of contract(dolo
insidente) renders the contract voidable.
CHAPTER 3 TRUE- Misrepresentation made by a third person
ENUMERATION does not vitiate consent unless the same has
1-3. What are the elements of a contract? created substantial mistake and the same is
- Consent, Object Certain, Cause of the mutual.
Obligation
TRUE- The motive is the special or personal reason
4-8. Give the 5 causes by which consent may be of a party why he entered into contract, as
vitiated or rendered defective. distinguised from the cause of the contract.
- Mistake, Violence, Intimidation, Undue TRUE- The statement of a false cause in contracts
Influence, Fraud shall render them void, if it should not be proved
that it is founded upon another cause which is true
and lawful.
IDENTIFICATION
CONSENT- It is the conformity of wills of the
contacting parties upon the object and cause as
well as to other terms and conditions of the
contract.
MISTAKE IN SUBSTANCE- It takes place when
both parties thought that the subject matter they are
dealing into does not turn out to be what it exactly
is.
MISTAKE OF IDENTITY OR QUALIFICATION- It
takes place when one party enter into the contract
primarily because of such identity or qualification of
the other party which is not actually the case.
LESION- It is simply the damage suffered by a
party because the price is unjust or inadequate.
ARTICLE 1332 OF THE CODE- It states that when
one of the parties is unable to read, or if the
contract is written in a language not understood by
him, and mistake is alleged, the person enforcing
the contract must show that the terms thereof have
been fully explained to the former before its
execution.

TRUE OR FALSE
TRUE- A contract is simulated when it is fictitious or
pretended in order to defraud the creditor or
mislead the general public.
TRUE- Contracts without a cause or with an illegal
cause produce no effect, whatsoever.