2 - Contracts and Obligations

Question 1

is that branch of law which determines the circumstances in which promises made by the parties to a contract shall be legally binding on them.

Answer 1

Law of Contract

Question 2

rights against the world at large

Answer 2

‘jus in rem’

Question 3

rights against particular persons

Answer 3

‘jus in personam’

Question 4

a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law (oxford dictionary)

Answer 4

Contract

Question 5

meeting of the minds between two persons whereby one binds himself, with respect to the others, to give something or to render service

Answer 5

Contract

Question 6

‘agreement to the [same] thing’

Answer 6

Consensus ad idem

Question 7

when the two parties to a contract, both have the same understanding of the terms of the agreement

Answer 7

Meeting of the minds

Question 8

The promise itself creates a manifestation of ____

Answer 8

Intent

Question 9

is an arrangement between the parties which may or may not contain the necessary elements to be enforceable before a court of law

Answer 9

A “simple” agreement

Question 10

means advantage or benefit moving from one party to the other

Answer 10

Consideration

Question 11

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

Answer 11

PREPARATION OR CONCEPTION

Question 12

marks the time the parties agree upon the object or subject matter and the cause or consideration of the contract

Answer 12

PERFECTION OR BIRTH

Question 13

the implementation of the terms of the contract

Answer 13

CONSUMATION OR TERMINATION

Question 14

An agreement which is enforceable by law at the option of one party but not at the option of the other or others is a voidable contract

Answer 14

Voidable Contract

Question 15

An agreement not enforceable by law

Answer 15

Void Agreement

Question 16

A contract which ceases to be enforceable by law

Answer 16

Void Contract

Question 17

agreement in one which transgresses the public policy or which is criminal in nature or which is immoral

Answer 17

Illegal Agreement

Question 18

Contract in one which cannot be enforced in a Court of law because of some technical defect such as absence of writing or where the remedy has been barred by lapse of time

Answer 18

Unenforceable Contract

Question 19

If the terms and conditions of contracts are expressly agreed upon (whether words spoken or written) at the time of formation of contract

Answer 19

EXPRESS CONTRACT

Question 20

One which is inferred from the acts or conduct of the parties or course of dealings between them

Answer 20

IMPLIED CONTRACT

Question 21

is an unwritten contract that the parties presumably intended to agree on, as can be inferred from their actions, conduct, and the circumstances

Answer 21

Implied-in-Fact Contract

Question 22

is a quasi-contract, in which there is an obligation imposed by law because of some special relationship between the parties, or because one of the parties would otherwise unjustly benefit from the relationship

Answer 22

Implied-in-Law Contract (Quasi Contract)

Question 23

is one in which both the parties have performed their respective obligations

Answer 23

executed contract

Question 24

that which remains to be carried into operation or effect

Answer 24

executory contract

Question 25

Performance of only one party is outstanding. is a contract created by an offer than can only be accepted by performance; can be formed by an express offer stating that the offer can only be accepted through performance.

Answer 25

ONE-SIDED OR UNILATERAL CONTRACT

Question 26

Performance of both the parties remains outstanding. It is An agreement formed by an exchange of a promise in which the promise of one party is consideration supporting the promise of the other party

Answer 26

BILATERAL CONTRACT.

Question 27

are such as are founded upon and completed by the mere agreement of the contracting parties, without any external formality or symbolic act to fix the obligation

Answer 27

Consensual contracts

Question 28

are those in which it is necessary that there should be something more than mere consent, such as a loan of money, deposit or pledge, which, from their nature, require a delivery of the thing

Answer 28

Real contracts

Question 29

are those which have a particular name to distinguish them; as, purchase and sale, hiring, partnership, loan for use, deposit, and the like.

Answer 29

Nominate Contract

Question 30

are those which have no particular names, as permutation and transaction, are so called

Answer 30

Innominate Contracts

Question 31

The freedom to contract as guaranteed by the Constitution is articulated by ____ which provides that “the contracting parties may establish such stipulations, clauses, terms, and conditions as they may deem convenient, provide they are not contrary to law, morals, public order and public policy

Answer 31

Article 1306 of the Code

Question 32

The parties cannot stipulate on matters against the law

Answer 32

CONTRARY TO LAW

Question 33

Contracts offending morals or good customs are void and without effect

Answer 33

CONTRARY TO MORALS AND GOOD CUSTOMS

Question 34

If a contract transgresses public policy or public order, the contract is void.

Answer 34

CONTRACTS AGAINST PUBLIC ORDER AND PUBLIC POLICY

Question 35

The law gives equal standing or treatment upon the parties such that the validity or compliance with the contract cannot be left to the sole will of one of them.

Answer 35

EQUALITY OF PARTIES UNDER CONTRACT

Question 36

If a contract should contain stipulations granting favor to a person not a party to the contract, the latter may demand its fulfillment provided he communicates his acceptance to the obligor before revocation

Answer 36

pour autri

Question 37

are those rights relating to immovable properties, i.e. land and buildings, like the right belonging to a mortgagee or lessee of a piece of land

Answer 37

Real Rights

Question 38

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

Answer 38

Consent

Question 39

can arise if contract involves minors, persons lacking mental capacity, aliens, convicts, and in some states-married women

Answer 39

Contractual Capacity

Question 40

the minor must return to the adult the property or other consideration that was the object of the contract

Answer 40

Duty of Restoration

Question 41

ability to have the contract set aside

Answer 41

Rescission

Question 42

Minor has indicated approval of the contract. | Minor has indicated an intention to be bound by the provisions of the contract

Answer 42

Ratification

Question 43

Things that directly foster the minor’s well-being Are things indispensable, or things proper and useful, for the sustenance of human life

Answer 43

Necessaries

Question 44

A false representation of a matter of fact—whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed—that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.

Answer 44

FRAUD

Question 45

Guilty knowledge that is sufficient to charge a person with the consequences of his or her acts

Answer 45

Scienter

Question 46

Occurs when the parties are wrong about the existence or absence of a past or present fact that is material to their transaction

Answer 46

Mistake

Question 47

Other party has forced one into the contract against one’s will

Answer 47

Duress

Question 48

is a doctrine in contract law that describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining power and that they are contrary to good conscience

Answer 48

Uncoscionability

Question 49

failing to perform any term of a contract, written or oral, without a legitimate legal excuse.

Answer 49

Breach of Contract

Question 50

A generic term for any type of legal duty or liability

Answer 50

Obligation

Question 51

is one for which no legal alternative exists since it is an unconditional duty

Answer 51

Absolute Obligation

Question 52

arises as a result of an enforceable promise, agreement, or contract

Answer 52

Contractual Obligation

Question 53

is spelled out in direct and actual terms, and an implied obligation is inferred indirectly from the surrounding circumstances or from the actions of the individuals involved

Answer 53

Express Obligation

Question 54

is one that binds two or more people to fulfill whatever is required, and a several obligation requires each of two or more individuals to fulfill the obligation in its entirety by himself or herself

Answer 54

Joint Obligation

Question 55

is binding upon the conscience and is fair but is not necessarily enforceable in law

Answer 55

Moral Obligation

Question 56

is one that must be performed since it is the main purpose of the contract that contains it, whereas a secondary obligation is only incidental to another principal duty or arises only in the event that the main obligation cannot be fulfilled

Answer 56

Primary Obligation

Question 57

is a penalty, such as the obligation to pay extra money if the terms or conditions of an agreement cannot be satisfied

Answer 57

Penal Obligation