WorksheetsObligations & Contracts Reviewer
Total questions: 90
Worksheet time: 1hrs 5mins
An obligation is:
a legal or moral duty to do something
a type of financial asset
a form of entertainment
a scientific theory
Which of the following is a requisite of an obligation?
It must be illicit
It must be indeterminate
It must be of non-pecuniary value
It must be licit
What is the difference between civil and natural obligations?
Civil obligations are enforceable by law, while natural obligations are not.
Natural obligations are enforceable by law, while civil obligations are not.
Both civil and natural obligations are enforceable by law.
Neither civil nor natural obligations are enforceable by law.
Which of the following is a source of obligation?
Contracts
Delicts
Quasi-delicts
All of the above
An obligation can arise from:
law
contract
quasi-contract
all of the above
What are the two kinds of contracts mentioned in the text?
Fill in the blank: A real contract is not perfected until the delivery of the ________ of the obligation.
object
subject
terms
conditions
Explain the rule regarding whether a contract is consensual or real.
A contract is consensual if it is formed by the mere agreement of the parties involved.
A contract is real if it requires the transfer of a physical object to be valid.
A contract is consensual if it requires a formal written document.
A contract is real if it is formed by verbal agreement only.
What is the principal kind of quasi-contract where a person voluntarily takes charge of the agency or management of the business or property of another?
Fill in the blank: Civil obligations arising from offenses shall be governed by the penal laws, subject to the provisions of Art 2177, Chapter 2 on Human Relations and Title 18 of the Civil Code on ________.
Obligations and Contracts
Property
Succession
Family Code
What are the two aspects of a crime mentioned in the text?
What is the period of prescription for dependent civil actions during the pendency of the criminal action?
During the pendency of the criminal action, the period of prescription for dependent civil actions is suspended.
The period of prescription for dependent civil actions is 5 years during the pendency of the criminal action.
The period of prescription for dependent civil actions is 10 years during the pendency of the criminal action.
The period of prescription for dependent civil actions is not affected by the pendency of the criminal action.
Which of the following is NOT a requisite of liability in quasi-delict?
A) Fault or negligence of the defendant
B) Damage suffered by the plaintiff
C) Relation of cause and effect
D) Pre-existing contractual relations
True or False: A final judgment in a civil action absolving the defendant from civil liability is a bar to a criminal action.
True
False
What distinguishes a delict from a quasi-delict?
A delict is intentional, while a quasi-delict is unintentional.
A delict is a criminal act, while a quasi-delict is a civil wrong.
A delict involves a contract, while a quasi-delict does not.
A delict is a public offense, while a quasi-delict is a private matter.
Who are considered persons liable under quasi-delict?
Only the direct perpetrator
The direct perpetrator and those who have control over them
Only those who have control over the perpetrator
Neither the perpetrator nor those who have control over them
A quasi-delict is:
a criminal act
a contractual obligation
a civil wrong not arising from a contract
a type of legal punishment
According to the text, what is the nature of a quasi-delict?
A quasi-delict is a wrongful act that causes harm to another, without malicious intent, and is not classified as a crime.
A quasi-delict is an intentional act that causes harm to another and is classified as a crime.
A quasi-delict is a legal agreement between two parties.
A quasi-delict is a type of contract.
In the context of obligations, 'determinate' means:
specific and identifiable
general and vague
unrelated and irrelevant
complex and multifaceted
Fill in the blank: The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been ________ to him.
delivered
transferred
given
handed over
Which of the following is a right of the creditor in determinate obligations?
To compel specific performance
To ask for performance of the obligation
To deliver a thing which is neither of superior nor inferior quality
To be liable for damages in case of breach of the obligation
What is the effect of the death of the accused on civil actions?
The civil action is dismissed.
The civil action is stayed until a legal representative is appointed.
The civil action continues against the estate of the deceased.
The civil action is automatically resolved in favor of the plaintiff.
What is the remedy if a person obliged to do something fails to do it?
Define 'default' in the context of voluntary breach through default.
'Default' refers to the failure to fulfill a legal obligation or duty, particularly in the context of a contract or agreement. In the case of a voluntary breach, it indicates that a party has not met their contractual obligations, either by not performing as agreed or by failing to make required payments.
'Default' refers to the successful completion of a legal obligation or duty, ensuring all contractual terms are met.
'Default' is the act of creating a new contract to replace an old one, often to improve terms.
'Default' is the process of negotiating terms to avoid fulfilling a contract.
List the three kinds of default mentioned in the text.
Technical default, Payment default, Cross default
Payment default, Cross default, Strategic default
Strategic default, Technical default, Payment default
Cross default, Technical default, Strategic default
What are the requisites of default?
The conditions that must be met for a default to occur
The penalties for defaulting on a loan
The benefits of avoiding default
The process of declaring bankruptcy
In obligations not to do, what happens if the obligor does what has been forbidden?
When is demand by the creditor not necessary in default of positive obligations?
What is the general rule for the fulfillment of obligations by both parties?
Both parties must fulfill their obligations simultaneously.
One party must fulfill their obligations before the other.
Obligations can be fulfilled at any time by either party.
There is no general rule for the fulfillment of obligations.
What happens when delay is incurred in fulfilling an obligation?
The obligation is nullified.
The obligation is fulfilled automatically.
The party may face penalties or damages.
The obligation is transferred to another party.
What is the effect of default on the debtor?
The debtor is relieved from the obligation.
The debtor's obligation is suspended.
The debtor's obligation is accelerated.
The debtor's obligation is extinguished.
What are the two kinds of fraud mentioned in the text?
Identity theft and credit card fraud
Insurance fraud and tax fraud
Mortgage fraud and securities fraud
Healthcare fraud and welfare fraud
Fill in the blank: Fraud is synonymous to _______.
Deception
Honesty
Truth
Integrity
Which of the following is not a kind of negligence?
Criminal negligence
Civil negligence
Intentional negligence
What is the difference between culpa contractual and culpa aquiliana as to the relationship of the parties?
Culpa contractual arises from a breach of contract, while culpa aquiliana arises from a tort or quasi-delict.
Culpa contractual and culpa aquiliana both arise from breaches of contract.
Culpa aquiliana is related to criminal liability, while culpa contractual is not.
Culpa contractual and culpa aquiliana are both related to tort law.
Explain the difference between negligence and fraud as described in the image.
Negligence is unintentional, while fraud is intentional.
Negligence involves a breach of duty, while fraud involves deception.
Negligence is a criminal act, while fraud is a civil wrong.
Negligence and fraud are both forms of intentional misconduct.
What is the test of negligence according to the image?
Reasonable person test
Strict liability test
Foreseeability test
Causation test
The regulatory power of the courts in cases of negligence is to:
enforce laws and regulations related to negligence.
interpret and apply laws to specific cases of negligence.
create new laws regarding negligence.
ignore existing laws and make decisions based on personal judgment.
The classifications of fortuitous events as mentioned in the image are:
Natural events and human-made events
Predictable events and unpredictable events
Common events and rare events
Local events and global events
List the exceptions to the general rule regarding the effect of fortuitous events upon obligation.
A. There are no exceptions to the general rule.
B. Exceptions include cases where the law provides otherwise.
C. Exceptions include cases where the parties have agreed otherwise.
D. Both B and C are correct.
What is the maximum rate of interest per annum for secured loans under the Usury Law?
10%
12%
14%
16%
Under the Usury Law, what is required for the recovery of interest?
1) The payment of interest must be expressly stipulated 2) The agreement must be in writing 3) The interest must be lawful
4) The interest rate must be below the legal limit
5) The borrower must be informed of the interest rate
6) The lender must be a licensed financial institution
What is the rate of interest if the transaction is a loan or forbearance of money, goods, or credits, and it is not fully paid?
5%
10%
15%
20%
Which type of interest is when the rate of interest is stipulated by the parties?
Simple interest
Compound interest
Legal interest
Lawful interest
What is the principal remedy of the creditor to protect and enforce his credit, generally by attachment?
Lien
Foreclosure
Repossession
Garnishment
Which rights of obligations are transmissible in character?
All rights are transmissible
Only personal rights are transmissible
Only property rights are transmissible
No rights are transmissible
Which of the following are conditions/requisites for a debtor to whom the right or action properly pertains to be indebted to the creditor?
The debtor must have a legal obligation to pay.
The debtor must have a moral obligation to pay.
The debtor must have a social obligation to pay.
The debtor must have a personal obligation to pay.
What is the distinctive characteristic of a pure obligation?
It is conditional.
It is not subject to any condition.
It is dependent on an event.
It is based on mutual agreement.
Fill in the blank: An obligation that is demandable at once, whose effectivity or extinguishment does not depend upon the fulfillment of a condition or upon the expiration of a term or period is called a _________.
demandable obligation
conditional obligation
term obligation
contingent obligation
True or False: The event can never constitute a condition because in order that it can be classified as such, the requisites of futurity and uncertainty must be present.
True
False
What is the general rule regarding the transmissibility of rights acquired by virtue of an obligation?
Rights acquired by virtue of an obligation are generally transmissible to third parties.
Rights acquired by virtue of an obligation are not transmissible to third parties.
Rights acquired by virtue of an obligation are only transmissible with the consent of the original parties.
Rights acquired by virtue of an obligation are only transmissible in the case of death.
Immediate demandability in the context of pure obligations is:
A concept where obligations are due immediately without any conditions.
A situation where obligations are due after a certain period.
A condition where obligations are due only if certain conditions are met.
A scenario where obligations are never due.
A divisible condition is:
A condition where a number can be divided by another without a remainder
A condition where a number is always greater than another
A condition where a number is always less than another
A condition where a number is equal to another
An indivisible condition is:
a condition that cannot be divided further
a condition that can be divided into parts
a condition that is always true
a condition that is always false
A positive condition is:
a condition that is beneficial or favorable
a condition that is harmful or unfavorable
a condition that is neutral
a condition that is undefined
A negative condition is:
A condition that is not positive
A condition that is always true
A condition that is always false
A condition that is neither true nor false
A conjunctive condition is:
a condition that uses 'and' to combine multiple conditions
a condition that uses 'or' to combine multiple conditions
a condition that uses 'not' to negate a condition
a condition that uses 'if' to create a conditional statement
An alternative condition is:
A condition that must be met for an event to occur
A condition that provides another option or choice
A condition that is always true
A condition that is never true
A suspensive condition is:
a condition that must be fulfilled before a contract is fully effective.
a condition that can be ignored in a contract.
a condition that is always fulfilled after a contract is signed.
a condition that has no impact on a contract.
A resolutory condition is a condition in a contract that, when fulfilled, results in:
The contract being terminated
The contract being fulfilled
The contract being voided
The contract being amended
A potestative condition is:
a condition that depends solely on the will of one of the parties
a condition that depends on an external event
a condition that is impossible to fulfill
a condition that is always true
A casual condition is:
a condition that occurs by chance
a condition that is planned
a condition that is necessary
a condition that is impossible
What happens to the obligation if the condition is impossible?
Explain the effect of a divisible obligation when part of it is affected by an impossible condition.
The entire obligation is void.
Only the affected part is void.
The obligation is fulfilled partially.
The obligation is transferred to another party.
Fill in the blank: If the condition is not to do an impossible thing, the obligation becomes _______.
impossible
possible
mandatory
optional
What is the effect of a positive condition on the performance of an act?
The doctrine of constructive fulfillment of suspensive conditions is described as:
A legal principle where conditions are deemed fulfilled if they are prevented by the party benefiting from them.
A doctrine that allows for the automatic fulfillment of conditions after a certain period.
A principle that suspends conditions indefinitely until all parties agree.
A rule that requires all conditions to be fulfilled in writing.
Fill in the blank: During the pendency of the condition, the debtor's obligation to comply with the prestation is _______.
suspended
immediate
accelerated
terminated
What is the principle of retroactivity applicable to?
Consensual contracts
Real contracts
Both A and B
Neither A nor B
Explain the general rule of retroactivity once the event which constitutes the condition is fulfilled.
The condition is considered as never having been fulfilled.
The condition is considered as having been fulfilled from the time it was agreed upon.
The condition is considered as having been fulfilled from the time the event occurred.
The condition is considered as having been fulfilled from the time the contract was signed.
What happens to the fruits and interests during the pendency of the condition in a reciprocal obligation?
They are preserved until the condition is fulfilled.
They are distributed equally between the parties.
They are forfeited.
They accrue to the benefit of the party who is not in default.
In the case of loss, when is the obligation extinguished?
Without the fault of the debtor
Through the fault of the debtor
Both A and B
Neither A nor B
What is the effect of improvements by its nature or by time?
They lead to progress and development.
They cause deterioration.
They have no effect.
They are unpredictable.
Do the rules also apply to resolutory conditions?
Yes, provided that the debtor is the person obliged to return the object of the obligation in case of fulfillment of the condition.
No, the rules do not apply.
What must be the nature of the breach which will entitle the injured party to file an action for the rescission of the obligation?
A minor breach
A material breach
Any breach
A breach caused by mutual consent
In case one of the parties should not comply with what is incumbent upon him, the injured party may choose between: 1. Fulfillment of obligation with damages 2. Rescission of the obligation with damages. True or False: The remedies are alternative, not cumulative. Hence, the injured party cannot seek both.
True
False
According to source, what is a legal period?
When it is granted by law
When it is stipulated by the parties
When it is fixed by the courts
What happens if the happening of a future event is fixed by the parties for the fulfillment or extinguishment of an obligation?
The obligation is automatically fulfilled.
The obligation is extinguished.
The obligation is suspended until the event occurs.
The obligation remains unaffected.
What happens to the obligation if there is a loss without the fault of the debtor?
The obligation is extinguished.
The obligation is transferred to another party.
The debtor must compensate for the loss.
The obligation is suspended until the loss is recovered.
Explain the effect of deterioration through the fault of the debtor.
The debtor is liable for damages.
The creditor is responsible for repairs.
The contract is voided.
No effect on the debtor.
What is the effect of improvements by its nature or by time?
Improvements lead to deterioration over time.
Improvements have no effect over time.
Improvements enhance value and efficiency over time.
Improvements cause confusion over time.
According to the general rule, when is a term presumed to be for the benefit of both the creditor and the debtor?
When it is explicitly stated in the contract
When it is implied by the nature of the transaction
When both parties agree to it
When it is required by law
What is the exception to the general rule regarding the benefit of term or period?
The exception is when the term is explicitly waived.
The exception is when the term is extended by mutual agreement.
The exception is when the term is shortened by mutual agreement.
The exception is when the term is ignored by one party.
List three reasons why a creditor may not be bound to receive payment before maturity.
A creditor may not be bound to receive payment before maturity due to contractual terms, potential loss of interest, and administrative inconvenience.
A creditor may not be bound to receive payment before maturity due to early payment discounts, increased cash flow, and reduced risk.
A creditor may not be bound to receive payment before maturity due to improved credit rating, enhanced liquidity, and better financial planning.
A creditor may not be bound to receive payment before maturity due to tax benefits, lower transaction costs, and increased profitability.
What is the effect of acceptance by a creditor of partial payment?
It discharges the entire debt.
It discharges the debt to the extent of the payment made.
It has no effect on the debt.
It increases the debt.
Define 'Judicial Term or Period' as per the text.
A specific duration during which a judge serves in office.
The time taken for a court case to be resolved.
The period when a court is in session.
The duration of a legal trial.
Which of the following is a restriction on judicial terms or periods?
Can be applied to contracts for services
Cannot be applied to pure obligations
Can be applied to all types of contracts
Fill in the blank: The only action that can be maintained under Art. 1197 is an action to ask the court to fix the duration of the term or period. It is only after the duration has been fixed by a proper court that any other action involving the fulfillment of the obligation can be maintained.
Art. 1197
Art. 1198
Art. 1199
Art. 1200
When the debtor becomes insolvent after the obligation has been contracted, what is the consequence?
The obligation is nullified.
The debtor is discharged from the obligation.
The creditor may claim the debtor's assets.
The obligation is transferred to a third party.
True or False: The prescriptive period of the action may also prescribe like an ordinary civil action – 10 years.
True
False
