OBLIGATIONS, CONTRACTS, & AGREEMENTS

Question 1

a juridical necessity to give, to do, or not to do

Answer 1

Obligation

Question 2

It is derived from the Latin word “obligare” which means to bind through giving, doing, or not doing something.

Answer 2

Obligation

Question 3

The Latin word from which “obligation” is derived.

Answer 3

“obligare”

Question 4

An obligation is a — because the rights and duties emanating from the obligation may be enforced by the courts of law which may order their performance if refused or neglected.

Answer 4

a juridical necessity

Question 5

The obligation to give is, in essence, a real obligation because a physical thing is involved, the delivery of the same extinguishes the obligation.

Rephrased: The duty to give something is a real obligation because it involves a physical object, and once the object is delivered, the obligation is fulfilled.

Answer 5

“ to give, to do, or not to do“

Question 6

Below is an example of a —:

Dad A is obliged to give Son X a bicycle because of his good standing in class as promised.

Answer 6

OBLIGATION

Question 7

Below is an example of a —:

Student B has to perform his task to do his paper to pass the requirements in school.

Answer 7

OBLIGATION

Question 8

Below is an example of a —:

Passenger D has to pay the jeepney fare upon reaching his destination.

Answer 8

OBLIGATION

Question 9

Below is an example of a —:

Driver K has to follow traffic rules in order not to be cited with a traffic violation ticket and to avoid accidents as well.

Answer 9

OBLIGATION

Question 10

is the moral or legal duty that requires an individual to perform, as well as potential penalties to perform.

Answer 10

Obligation in PH Law

Question 11

is a duty to do what is imposed by contract, promise, or law.

Answer 11

Obligation in PH Law

Question 12

In the most general sense, a synonym for obligation is —

Answer 12

duty

Question 13

The prestation to do or not to do are (—), like to draw a plan of a house (—) or not to draw a plan (—).

Answer 13

personal obligations; positive one; negative one

Question 14

In all of the above examples, the obligation is demandable when due —

Answer 14

[ask]

Question 15

A promise is a promise, but promises are made to be —

Answer 15

fulfilled

Question 16

An obligation is nothing more than the duty of a person (—) to satisfy a specific demandable claim of another person (—), which, if breached, is enforceable in court

Answer 16

obligor; obligee

Question 17

Below is an example of a —:

Paying taxes as per (BIR [Bureau of Internal Revenue]) internal revenue code

Answer 17

OBLIGATION

Question 18

Below is an example of a —:

Paying correct standard wages as per DOLE (Department of Labor and Employment)

Answer 18

OBLIGATION

Question 19

Requisites of an obligation (4)

Answer 19

a) Juridical Tie or Vinculum
b) Prestation
c) Active Subject
d) Passive Subject

Question 20

is the link that binds the parties

Answer 20

a) Juridical Tie or Vinculum

Question 21

is the giving, doing, or not doing of something

Answer 21

b) Prestation

Question 22

is the person who holds the right to demand the prestation

Answer 22

c) Active Subject

Question 23

is the person against whom the prestation may be demanded

Answer 23

d) Passive Subject

Question 24

Identify the 4 requisites of an obligation in the example below:

Supplier X entered into a contract to deliver backfilling material to Developer Z.

Answer 24

juridical tie: contract
prestation: to deliver the backfilling materials
active subject: Developer Z
passive subject: Supplier X

Question 25

Identify the 4 requisites of an obligation in the example below: Boy G promised to Girl K a dinner date on their anniversary.

Answer 25

juridical tie: promise prestation: dinner date active subject: Girl K passive subject: Boy G

Question 26

enumerates the sources of obligation

Answer 26

Article 1157 of the Civil Code

Question 27

Sources of obligation (5)

Answer 27

a) Obligations arising from LAW b) Obligations arising from CONTRACTS c) Obligations arising from QUASI-CONTRACTS d) ACTS OF OMISSIONS PUNISHABLE BY LAW e) QUASI-DELICTS

Question 28

Identify source: The obligation of husband and wife to live with each other, observe mutual respect and fidelity and render mutual support. (adultery)

Answer 28

Obligation arising from LAW

Question 29

Identify source: The obligation to pay taxes under the National Internal Revenue Code

Answer 29

Obligation arising from LAW

Question 29

Identify source: The obligation of an employer to pay minimum wages to the workers.

Answer 29

Obligation arising from LAW

Question 29

Identify source: DMCI, a triple-A category contractor in the PCAB, is under contract to build and deliver the 3rd segment of SKYWAY from Makati to Caloocan City by the end of 2022.

Answer 29

Obligation arising from CONTRACTS PCAB - Philippine Contractors Accreditation Board

Question 29

Identify source: As a heavy equipment supplier and lessor, you are under contract to lease your backhoe and dump truck for the excavation and hauling of the drainage project in Cebu Business Park for 6 weeks.

Answer 29

Obligation arising from CONTRACTS

Question 29

When duly entered into, the obligation from the contract has the full force of the law between the parties and, hence should be complied with in good faith. Rephrased: Once a contract is properly made, it has the same power as the law between the parties, so it must be followed in good faith.

Answer 29

Obligation arising from CONTRACTS

Question 29

is the meeting of minds between two persons, whereby one binds himself with respect to the other to give something or render some services.

Answer 29

contract

Question 29

is a promise or arrangement between two or more parties to do, or not to do, something, is usually informal and sometimes unwritten (but not always).

Answer 29

agreement

Question 29

The contracts enumerated and treated in the Civil Code are

Answer 29

Sale, Barter, Lease, Partnership, Agency, Loan, Deposit, Insurance, Guaranty, Pledge, and Mortgage

Question 30

is a legally binding agreement between two or more parties. Once signed, this contractual agreement creates a promise that certain rights and obligations will be fulfilled by each party.

Answer 30

contract

Question 30

In essence, a --- is at the heart of every contract.

Answer 30

promise

Question 31

Some examples of an agreement include (2)

Answer 31

a letter of intent a confidentiality agreement that precedes a commercial discussion.

Question 32

Informal agreements are based on ---, and aren’t legally enforceable in court or with arbitration – so if one party doesn’t do what they’ve said they will (for example if the contractor or volunteer doesn’t turn up), the other party likely can’t seek a remedy or enforcement through the courts.

Answer 32

trust

Question 33

What is the difference between an agreement and a contract?

Answer 33

Like an agreement, a contract is a formal arrangement between two or more parties to do or not to do something. But its terms and conditions are legally enforceable- perhaps in court or through arbitration. That means if someone breaks them, the other party can seek legal action. Rephrased: A contract, like an agreement, is a formal arrangement between two or more parties to take or avoid certain actions. However, its terms and conditions are legally binding, meaning that if one party fails to comply, the other can pursue legal action through court or arbitration.

Question 34

a “meeting of the minds between two persons whereby one binds himself with respect to the other, to give something, or to render some service”

Answer 34

contract

Question 35

STAGES OF A CONTRACT (3)

Answer 35

a) Preparation or conception, b) Perfection or birth c) Consummation or termination.

Question 36

Stage that starts from the inception and negotiation that may lead to the parties coming to the terms of the contract

Answer 36

A) Preparation

Question 37

Stage that marks the time the parties agree upon the object or subject matter and may cause or consideration of the contract.

Answer 37

B) Perfection or birth

Question 38

Stage that is simply the implementation of the terms of the contract and simultaneous documentation in formal ones

Answer 38

c) Consummation or termination.

Question 39

Identify stages of the contract: Contract of Sale of Land Buyer A drafts a letter of intent to buy a property of Seller B with an offer of 100K. Seller B counter-offers to sell his property at 150K to Buyer A with the condition that real estate taxes will be shouldered by Buyer A and also the relocation expenses. Seller B agrees to sell his property @ 150K if it is surveyed and done with the relocation of the markers and the pay the real estate taxes. Full payment shall be paid by Buyer A to Seller B once the terms and conditions are agreed upon and satisfied. Rephrased: Buyer A writes a letter of intent to buy Seller B’s property for $100K. Seller B responds with a counteroffer, asking for $150K and requiring Buyer A to cover real estate taxes and relocation expenses. Seller B agrees to sell at $150K if the property is surveyed, boundary markers are relocated, and real estate taxes are paid. Full payment will be made once all terms are met.

Answer 39

Stage 1 - is the negotiation and putting all the conditions of the buyer to the seller. Preparation and inception Stage 2 - Once they have prepared all the conditions and agreed upon them, then the Birth or perfection of the contract is done. The signing of the contract. Stage 3 - Once the markers and relocation survey with the survey drawings are submitted is done. Payment is made. Then the deed of sale is signed and sealed and then consummation of the contract. Consumatun Est Stages of the Contract: Stage 1: Negotiation & Preparation – Buyer and seller discuss and agree on the terms. Stage 2: Contract Signing (Perfection) – Once both parties agree, they sign the contract, making it official. Stage 3: Completion (Consummation) – After the survey, relocation, and submission of survey drawings, Buyer A makes the payment. The deed of sale is then signed and finalized. Consummatum Est – The contract is fulfilled.

Question 40

Contractor ABC won a bid to construct a 4-storey commercial building. The terms and conditions were met so contractor A started to mobilize. The building owner then pays the 30% down payment. So full construction activities followed from excavation to re-bars placement to concreting to formworks and scaffoldings and so forth until the building was completed and turned over. Once the terms and conditions were satisfied by the contractor, payments were also made until the turnover of the building and final punch listing. To satisfied Owner then terminates the contract by paying the 10% retention to the contractor ABC following all terms and conditions of the contract.

Answer 40

A very ideal contract; no problems encountered.

Question 41

Requisites of a Contract (Elements of a Contract) If the Contract lacks any of the said elements, the contract is null and void, as if it had not existed at all.

Answer 41

1) Consent of the Contracting parties 2) Object Certain - which is the subject matter of the Contract 3) Cause of Obligation - which is established

Question 42

is the conformity of wills of the contracting parties upon the object and cause as well as the other terms and conditions of the contract.

Answer 42

Consent of the contracting parties

Question 43

is the subject matter of the contract. All things which are within the commerce of man (e.g., delivery of goods, delivery of services)

Answer 43

Object Certain

Question 44

e.g. Contract amount (1) Mode of payment (a) Delivery date (deadline) (b) Liquidated damages (LD) penalties

Answer 44

Cause of the Obligation

Question 45

Is one that was entered into legally by the contracting parties but has resulted in economic damage to one of the parties or an outside party.

Answer 45

RESCISSIBLE CONTRACTS

Question 46

capable of being rescinded

Answer 46

Rescissible ( adjective)

Question 47

cancellation of a contract; terminated

Answer 47

Rescinded

Question 48

may be unilateral; as when a party rightfully cancels a contract because of another party’s material breach. Can also be mutual when the contracting parties agree to discharge all remaining obligations.

Answer 48

Rescission

Question 49

Below is an example of a ---: A contractor has not delivered the scope of work accordingly using substandard materials. Not following specifications by itself

Answer 49

Rescinded Contracts

Question 50

Below is an example of a ---: The labor contract did not deliver the certain work on time.

Answer 50

Rescinded Contracts

Question 51

Below is an example of a ---: The contractor not only breached his contract but also rescinded his contract by not showing up at the job site anymore.

Answer 51

Rescinded Contracts