Contracts Flashcards

Question

What is the effect of a contract entered into by a person who is deaf-mute and illiterate?

Answer 1

The contract is voidable ## Footnote If the deaf-mute and illiterate person cannot understand the terms, the contract is voidable due to lack of valid consent.

Answer 2

The condition is void, and the obligation is extinguished ## Footnote An impossible condition renders the obligation void (Art. 1183).

Answer 3

The contract is unenforceable ## Footnote A contract entered into by an agent without authority binds the principal only upon ratification.

Answer 4

The penal clause substitutes for damages and interest in case of breach ## Footnote A penal clause is a stipulation that fixes the amount of damages in advance (Art. 1226).

Answer 5

The contract is voidable ## Footnote Mental incapacity vitiates consent, making the contract voidable at the instance of the incapacitated person.

Answer 6

The third party may demand performance if the stipulation is accepted ## Footnote A stipulation pour autrui creates a benefit for a third party who may enforce it upon acceptance (Art. 1311).

Answer 7

The obligation is effective until the arrival of the period ## Footnote A resolutory period ends the obligation upon its arrival (Art. 1193).

Answer 8

The contract is voidable ## Footnote Incapacity to give consent makes the contract voidable at the instance of the incapacitated party.

Answer 9

Only the part of the obligation affected by the breach is rescinded ## Footnote Divisible obligations allow partial performance or rescission (Art. 1225).

Answer 10

The obligation arises only upon the fulfillment of the condition ## Footnote A condition precedent suspends the effectivity of the obligation until it is fulfilled (Art. 1181).

Answer 11

The contract is void ## Footnote Contracts contrary to public policy are void and unenforceable (Art. 1409).

Answer 12

The contract is voidable ## Footnote Undue influence vitiates consent, making the contract voidable at the instance of the injured party.

Answer 13

The condition is valid ## Footnote A potestative condition dependent on both parties is valid as it reflects mutual agreement.

Answer 14

The obligation arises only upon the arrival of the period ## Footnote A suspensive period delays the effectivity of the obligation until the period arrives (Art. 1193).

Answer 15

The penalty may be reduced by the court ## Footnote Courts may reduce the penalty if the breach is partial or if the penalty is iniquitous (Art. 1229).

Answer 16

The contract is void ## Footnote A person legally declared insane lacks capacity to give consent, rendering the contract void.

Answer 17

The obligation is not extinguished by loss of the thing ## Footnote Generic obligations are not extinguished by loss because the genus does not perish (Art. 1263).

Answer 18

The obligation is extinguished upon the fulfillment of the condition ## Footnote A condition subsequent terminates the obligation upon its occurrence (Art. 1183).

Answer 19

The stipulated amount is enforceable unless it is iniquitous ## Footnote Liquidated damages are enforceable unless the amount is unconscionable (Art. 2226).

Answer 20

The contract is valid ## Footnote A deaf-mute who can read and write is capable of giving valid consent.

Answer 21

The stipulation is valid if reasonable ## Footnote Attorney’s fees stipulated in a contract are valid if they are not excessive or unconscionable (Art. 2208).

Answer 22

The obligation arises upon the fulfillment of the suspensive condition and is extinguished upon the occurrence of the resolutory condition ## Footnote A contract may have both suspensive and resolutory conditions, with the obligation arising and ending based on their fulfillment (Art. 1181 and Art. 1183).

Answer 23

The contract is voidable ## Footnote A minor lacks full capacity to give consent, making the contract voidable unless ratified upon reaching the age of majority.

Answer 24

The obligation is extinguished if the thing is lost due to a fortuitous event ## Footnote If a determinate thing is lost without the fault of the debtor and before delay, the obligation is extinguished (Art. 1262).

Answer 25

The condition is void, and the obligation is extinguished ## Footnote Conditions contrary to good customs, morals, or public policy render the obligation void (Art. 1183).

Answer 26

The interest must be expressly stipulated in writing ## Footnote Interest on loans is not demandable unless expressly stipulated in writing (Art. 1956).

Answer 27

The contract is voidable ## Footnote A person under guardianship lacks full capacity to give consent, making the contract voidable unless ratified by the guardian.

Answer 28

The stipulation is void ## Footnote A waiver of future fraud is contrary to law and public policy, rendering it void (Art. 1171).

Answer 29

The condition is valid ## Footnote A purely casual condition, dependent on chance or external factors, is valid as it does not depend solely on the will of one party.

Answer 30

Mutual restitution is required in case of annulment ## Footnote When a contract is annulled, both parties must return what they have received (Art. 1398).

Answer 31

The contract is valid ## Footnote If the intoxicated person understands the terms of the contract, it is valid as consent is not vitiated.

Answer 32

The penalty is demandable without proof of actual damages ## Footnote A penalty clause in case of delay is enforceable without the need to prove actual damages (Art. 1226).

Answer 33

The condition is valid ## Footnote A condition dependent on the will of a third party is valid as it does not solely rely on one of the contracting parties.

Answer 34

The earnest money is forfeited if the buyer withdraws ## Footnote Earnest money serves as proof of the contract and is forfeited if the buyer backs out (Art. 1482).

Answer 35

The contract is voidable ## Footnote Threat or intimidation vitiates consent, making the contract voidable at the instance of the injured party.

Answer 36

The debtor may choose which obligation to perform unless the choice is given to the creditor ## Footnote In alternative obligations, the debtor generally has the right to choose which obligation to perform unless otherwise stipulated (Art. 1199).

Answer 37

Each debtor is liable only for their proportionate share ## Footnote In joint liability, each debtor is responsible only for their part of the obligation (Art. 1207).

Answer 38

The condition is valid ## Footnote A condition dependent on a fortuitous event is valid as it does not rely on the will of the parties.

Answer 39

Each debtor is liable for the entire obligation ## Footnote In solidary liability, each debtor is bound to fulfill the entire obligation, and payment by one extinguishes the obligation (Art. 1207).

Answer 40

The contract is valid unless the mistake affects consent ## Footnote A mistake of law does not generally vitiate consent unless it affects the essence of the contract (Art. 1334).

Answer 41

The obligation may be performed in parts ## Footnote Divisible prestations allow partial performance unless the nature of the obligation requires complete fulfillment (Art. 1225).

Answer 42

The condition is valid ## Footnote A condition dependent on the mutual will of both parties is valid as it reflects their agreement.

Answer 43

The obligation must be performed in full ## Footnote Indivisible prestations require complete performance, even if the obligation is divisible in nature (Art. 1225).

Answer 44

The contract may be annulled if the mistake affects consent ## Footnote A mistake of fact affecting the essence of the contract vitiates consent, making it voidable (Art. 1331).

Answer 45

Both parties must perform their obligations simultaneously ## Footnote Mutual obligations require simultaneous performance unless otherwise stipulated (Art. 1169).

Answer 46

The condition is void if it is purely potestative ## Footnote A purely potestative condition dependent solely on one party invalidates the obligation (Art. 1182).

Answer 47

The breach by one party entitles the other to rescind the contract ## Footnote Reciprocal obligations allow rescission in case of breach by one party (Art. 1191).

Answer 48

The contract may be annulled if the mistake affects consent ## Footnote A mistake of identity affecting the essence of the contract vitiates consent, making it voidable (Art. 1331).

Answer 49

The debtor may choose which prestation to perform unless the choice is given to the creditor ## Footnote In alternative prestations, the debtor generally has the right to choose which prestation to perform unless otherwise stipulated (Art. 1199).

Answer 50

The condition is void, and the obligation is extinguished ## Footnote An impossible condition renders the obligation void (Art. 1183).

Answer 51

Both parties must return what they have received ## Footnote Mutual restitution is required when a contract is annulled (Art. 1398).

Answer 52

Nominate contracts are named and regulated by law, while innominate contracts are governed by agreements, customs, and provisions on obligations and contracts ## Footnote Art. 1307 recognizes innominate contracts and provides guidelines: (1) agreement of the parties; (2) rules on obligations and contracts; (3) customs; (4) equity.

Answer 53

It corrects the written contract to reflect the true intention of the parties ## Footnote Reformation does not alter the contract itself, only its written expression (Art. 1359).

Answer 54

There must be a meeting of minds but the written instrument does not reflect the true agreement due to mistake, fraud, inequitable conduct, or accident ## Footnote Art. 1359–1369 govern reformation. No reformation if there was no meeting of minds.

Answer 55

A third person may demand enforcement if the stipulation clearly and deliberately benefits them and they communicate acceptance ## Footnote Art. 1311(2) allows beneficiaries to act upon stipulations in their favor, even if not parties.

Answer 56

Consensual contracts are perfected by mere consent; real contracts require delivery ## Footnote Example: sale (consensual), deposit or pledge (real).

Answer 57

An option must be supported by a separate consideration to be binding ## Footnote Without consideration, the offer may be withdrawn before acceptance (Art. 1324).

Answer 58

It is a consensual, bilateral, onerous, commutative, and nominate contract ## Footnote Sale is perfected by mere consent, creates mutual obligations, and transfers ownership upon delivery.

Answer 59

A principal contract exists by itself, while an accessory contract depends on the principal ## Footnote Examples: loan (principal); mortgage or guaranty (accessory).

Answer 60

Cause is the essential reason recognized by law; motive is the personal reason of the party ## Footnote Only cause affects validity. Art. 1350: cause is required for validity.

Answer 61

The contract is void ## Footnote Illegality of cause vitiates the entire contract (Art. 1352, 1409).

Answer 62

Rescissible, voidable, unenforceable, and void ## Footnote Each class has different effects and remedies under Arts. 1380–1409.

Answer 63

Upon agreement between the parties on the subject matter and the cause ## Footnote Art. 1315: perfection of consensual contracts requires meeting of minds.

Answer 64

The contract is void ## Footnote A contract must have consent, object, and cause to be valid (Art. 1318).

Answer 65

Once perfected, the contract obliges both parties to fulfill their respective obligations ## Footnote Art. 1315 and 1159: contracts have the force of law between parties.

Answer 66

Contracts are valid in any form unless law requires a specific form for validity or enforceability ## Footnote Art. 1356 allows oral or written forms unless otherwise provided by law.

Answer 67

An onerous contract involves reciprocal prestations; a gratuitous contract involves generosity without return ## Footnote Art. 1350–1351 distinguish between contracts with burdens on both sides (onerous) and one-sided liberality (gratuitous).

Answer 68

It is a contract where the parties expect an approximately equal exchange of value ## Footnote Typical in sales: each side’s benefit is the cause of the other’s obligation (Art. 1349).

Answer 69

Ambiguities are resolved against the party who caused them ## Footnote As per Art. 1377, unclear clauses are interpreted contra proferentem.

Answer 70

The intention of the parties prevails over the literal wording ## Footnote Art. 1370 emphasizes intent over form. The contract is interpreted to harmonize conflicting clauses if possible.

Answer 71

The general provisions on obligations and contracts, customs, equity, and natural law ## Footnote For innominate contracts or silence in clauses, Art. 1307 and 1376 apply.

Answer 72

They are binding if expressly stipulated ## Footnote Accidental elements (e.g., period, condition, penalty) are optional but enforceable once agreed upon.

Answer 73

Only one party is obliged to perform, while the other assumes no obligation ## Footnote Donations (if accepted) are classic examples—binding only on the donor.

Answer 74

A preparatory contract leads to another contract, while a consummated contract fulfills the transaction ## Footnote Example: partnership (preparatory); sale (consummated).

Answer 75

They are generally void unless expressly authorized by law ## Footnote Contracts over future inheritance violate public policy (Art. 1347).

Answer 76

A standardized contract offered to a party who cannot negotiate its terms ## Footnote Although valid, any doubt is resolved against the drafter (Art. 1378). Common in insurance and bank forms.

Answer 77

Mistake, violence, intimidation, undue influence, or fraud ## Footnote Art. 1330 lists the principal vices of consent that render a contract voidable.

Answer 78

When the contract is real, not consensual ## Footnote Real contracts like deposit, pledge, or commodatum require actual delivery to be perfected (Art. 1316).

Answer 79

Absolute simulation renders a contract void; relative simulation keeps the real agreement valid ## Footnote Simulation must be evaluated to determine parties’ true intent (Art. 1345–1346).

Answer 80

The creditor may reject it and demand full performance ## Footnote In indivisible obligations, partial fulfillment is not enough unless accepted (Art. 1233).

Answer 81

The court may reduce the penalty ## Footnote Art. 1229 grants discretion to modify penalties that are unreasonable or excessively harsh.

Answer 82

The contract is perfected upon knowledge of acceptance by the offeror ## Footnote According to Art. 1319, acceptance sent by letter or telegram binds the offeror only upon actual knowledge of it.

Answer 83

The contract is perfected upon manifest agreement between the parties ## Footnote In phone or online chats, acceptance is simultaneous with communication—consent is immediate.

Answer 84

It contains the full and final agreement of the parties ## Footnote Art. 1370: If terms are clear, the literal meaning controls unless intent of parties is otherwise shown.

Answer 85

If done maliciously and without justifiable motive ## Footnote As recognized in jurisprudence, intentional interference in bad faith gives rise to liability.

Answer 86

There is no annulment unless the error concerns the effect of the contract ## Footnote Art. 1334: Mistake of law doesn't invalidate consent unless it alters the intent materially.

Answer 87

It is an element that exists by default unless the parties stipulate otherwise ## Footnote For example, warranty against eviction in a contract of sale (Art. 1548).

Answer 88

Only when the law expressly provides so ## Footnote Art. 1356: Contracts are valid in any form unless law requires a specific one for validity (e.g., donation of immovable).

Answer 89

A juridical relation arising from lawful, voluntary acts that prevent unjust enrichment ## Footnote Examples: solutio indebiti, negotiorum gestio—treated under obligations, not true contracts.

Answer 90

When terms admit several interpretations ## Footnote Art. 1373: If doubt exists, the construction that gives effect over nullity prevails.

Answer 91

Intentional concealment or misrepresentation of material facts ## Footnote Pre-contractual liability may arise if good faith is violated during negotiation (culpa in contrahendo).

Answer 92

Customs fill in gaps if not contrary to law, morals, or public policy ## Footnote Per Art. 1376, usage in the place is presumed known and followed unless stipulated otherwise.

Answer 93

A preparatory and consensual contract ## Footnote It prepares the ground for other contracts and is perfected by consent alone (Art. 1868).

Answer 94

Legal arises by operation of law; conventional by agreement of the parties ## Footnote Legal requires mutual debts under Art. 1278; conventional allows waiver of requirements (Art. 1282).

Answer 95

In case of breach, the injured party may choose rescission with damages ## Footnote The power to rescind exists even without court action in bilateral obligations, unless judicial intervention is required.

Answer 96

The provisions of the Civil Code and special laws on commerce ## Footnote While the Civil Code lays down general contract law, special laws (e.g., Code of Commerce) may apply in trade contexts.

Contracts Flashcards

(120 cards)