Contracts (General Provision)

The following are cases when a contract is effective only between parties, except

• by their nature

• by stipulation in accordance with the principle of freedom to contract

• by stipulation in favor of a third person

• by provision of law

The determination shall not be obligatory if it is

• inequitable

• equitable

• evidently inequitable

• evidently equitable

The heir is not liable beyond the property he received from the

• decedent

• obligor

• assigns

• third person

A stranger to the contract

• heir

• third person

• decedent

• assigns

It is binding against the whole world and attaches to the property over which it is exercised wherever it goes

• personal rights

• real rights

• limited rights

• ownership

This is when the parties have performed their respective obligations and the contract may be said to have been fully accomplished or executed.

• Preparation or Negotiation

• Perfection or Birth

• Consummation or Termination

Mutuum or loan is an example of what classification of contract according to perfection?

• Consensual Contract

• Real Contract

• Solemn Contract

From the moment the parties come to an agreement on a definite subject matter and valid consideration, they are bound -

I. To the fullfillment of what has been expressly stipulated.

II. To all the consequences which according to their nature, may be in keeping with good faith, usage, and law.

• I only

• II only

• Both I and II

• Neither I nor II

TRUE OR FALSE

Almost all contracts are consensual as to its perfection. They come into existence upon their perfection by mutual consent, even if the subject matter or the consideration has not been delivered.

• TRUE

• FALSE

TRUE OR FALSE

A Contract may also be terminated after its perfection by performance and mutual agreement of the parties.

• TRUE

• FALSE