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Understanding Our Contract Clauses

Total questions: 11

Worksheet time: 5mins

Name
Class
Date
1.

These are damages agreed upon by the parties and stipulated in the contract, to be paid in case of delay or breach

a)

Nominal Damages

b)

Actual or Compensatory Damages

c)

Liquidated Damages

d)

Moral damages

2.

If a contract is entered into in the name of another person by one who has been given no authority or legal representation or by someone who acted beyond his power, such contract is considered _____________________.

a)

Voidable

b)

Unenforceable

c)

Null and void

d)

Unsound

3.

Article 1306 of the Civil Code providers: “The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not __________________, __________________, ___________________ or __________________.

a)

contrary to law, morals, good customs, public order, or public policy

b)

contrary to law, morals, good customs, right conduct, public order, or public policy

c)

contrary to law, morals, good customs, or public order

d)

contrary to law, morals, good customs, or public policy

4.

In general, the (i) exercise of the right to enjoy, dispose or recover and (ii) risk are attached to _______________.

a)

Intellectual Property

b)

Ownership

c)

Possession

d)

Acceptance

5.

This law or regulation imposes, including compliance, whenever applicable, to the license requirements (from the Bureau of Industry and Security) before exporting or reexporting, to a person appearing on the Entity List, any item that is subject to the said regulation.

a)

General Tariffs Act

b)

Export Development Act of 1994

c)

U.S. Export Management and Regulations

d)

U.S. Export Administration Regulations

6.

This clause provides that promises or agreements, representations of warranties, not contained in the contract are deemed to have been disregarded and only those contained in the contract are considered as binding.

a)

Waiver

b)

Autonomy of Contracts

c)

Severability Clause

d)

Entire Agreement clause

7.

This clause is important especially when the parties to a contract come from different countries since they no longer need to be at one place to sign the contract.

a)

Counterparts and Electronic Signature clause

b)

Governing Law and Venue clause

c)

Severability Clause

d)

Entire Agreement clause

8.

This clause is helpful in answering the following questions (1) Where can or should litigation be initiated? (2) Which law will the court apply? and (3) Where can the resulting judgment be enforced?

a)

Dispute Resolution and Arbitration

b)

Governing Law and Venue clause

c)

Severability Clause

d)

Entire Agreement clause

9.

Without this clause, PLDT cannot unilaterally terminate a contract.

a)

Change in Control clause

b)

Termination for Cause clause

c)

Termination for Convenience clause

d)

Force Majeure clause

10.

The principle of autonomy of contracts is embodied in Article __________ of the Civil Code. Said article states that: The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.

a)

Article 1806, CC

b)

Article 1306, CC

c)

Article 1036, CC

d)

Article 1086, CC

11.

Fill in the blanks: It is a fundamental rule that contracts, once perfected, bind both contracting parties, and obligations arising therefrom have the __________ between the parties and should be complied with in _____________.

a)

force of law; good faith

b)

binding effect; accordance with the Specifications

c)

good faith; force of law

d)

mutual effect; accordance with its terms