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CONTRACTS: CHAPTER V - INTERPRETATION OF CONTRACTS

Total questions: 20

Worksheet time: 3mins

Name
Class
Date
1.

If the words appear to be contrary to the evident intention of the parties, the former shall prevail over the latter.

a)

TRUE

b)

FALSE

2.

Why is it a cardinal rule in the interpretation of contracts that the intention of the contracting parties should always prevail?

(a)  

3.

Obligations arising from contracts have the force of law between the contracting parties.

a)

TRUE

b)

FALSE

4.

What is interpretation of a contract?

(a)  

5.

Contracts, which are the _______ laws of the contracting parties, should be fulfilled according to the literal sense of their stipulations, if the terms of a contract are clear and unequivocal.

a)

private

b)

public

6.

A contract could be understood and interpreted by parts, words, phrases, or clauses.

a)

TRUE

b)

FALSE

7.

Mr. Veloso leased his car to Mr. Ty and the latter, as stated in the contract, is prohibited to sublease the car to anyone without Mr. Veloso's written consent. Another stipulation referring to that condition was stated and that Mr. Ty would be ejected from the contract as a violation for that condition. Has Mr. Veloso the right to demand P2,000 from Mr. Ty as a penalty?

a)

Maybe, because he violated the condition.

b)

Yes, it is stipulated in the contract.

c)

No, in the light of the clause stating the penalty for the violation of the condition.

d)

None of the above.

8.

If the word is susceptible of two or more meanings, what is the ruling for the interpretation?

a)

Art. 1373

b)

Art. 1374

c)

Art. 1375

d)

Art. 1376

9.

In interpretation of words with different significations, what must prevail?

a)

The intention of the parties.

b)

The nature and object of the contract.

c)

The terms stipulated in the contract.

d)

All of the above.

10.

It shall be borne in mind in the interpretation of the ambiguities of a contract.

(a)  

11.

Mr. X and Mr. Y entered into a contract whereby Mr. X designed and supervised the house of the latter located in Tanay, Rizal. However, the amount for the professional fee of Mr. X was not provided. Where should the amount for the professional fee of Mr. X be based?

a)

Usage or custom of the place.

b)

In the terms stipulated in their contract.

c)

In the rate customarily paid in Tanay, Rizal.

d)

None of the above.

12.

Article 1377 is applicable where the evident intention of

the parties can be readily discerned by their contemporaneous and

subsequent acts.

a)

TRUE

b)

FALSE

13.

Contract of (a)   is when all their provisions

have been drafted by one party, and the only participation of the other

party is the signing of his signature.

14.

If the doubts refer to incidental circumstances of a gratuitous contract_________.

a)

such interpretation should be made which would result in the least transmission of rights and interests.

b)

the doubts should be resolved in favor of the greatest reciprocity of interests.

c)

such doubt cannot be resolved, thereby leaving the intention of the parties unknown

15.

If the contract in question is onerous _______.

a)

such interpretation should be made which would result in the least transmission of rights and interests.

b)

the doubts should be resolved in favor of the greatest reciprocity of interests.

c)

such doubt cannot be resolved, thereby leaving the intention of the parties unknown

16.

If the doubt refers to the principal object of the contract _________.

a)

such interpretation should be made which would result in the least transmission of rights and interests.

b)

such intethe doubts should be resolved in favor of the greatest reciprocity of interests.

c)

such doubt cannot be resolved, thereby leaving the intention of the parties unknown

17.

In case of conflict, the ______ prevail over the ___________.

(a)  

18.

Terms are presumed to have been used in their ordinary and generally accepted meaning.

a)

TRUE

b)

FALSE

19.

In case of conflict between a general and a particular provision, the former shall prevail.

a)

TRUE

b)

FALSE

20.

Experts and interpreters may be asked to declare the characters the meaning of the language when such characters are difficult to decipher or the language is not understood by the court.

a)

TRUE

b)

FALSE