The Law on

Obligations
and Contracts
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 TITLE II
CONTRACTS
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 1

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1305
Identification

It is a meeting of minds between two persons

whereby one binds himself, with respect to
the other, to give something or to render
some service.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1305

Answer:
Contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1306
Identification

It meets all the legal requisites for the type of

agreement involved and the limitations on
contractual stipulations.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1306

Answer:
Valid Contracts

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1307
Identification

Has no specific name or designation to law.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1307

Answer:
Innominate Contracts

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1308
Multiple Choices
The contract must bind both contracting parties;
its validity or compliance cannot be left to the will
of one of them. This is known as the principle of:
a. Mutuality of contract
b. Consensuality of contract
c. Relativity of contract
d. Freedom to contract
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1308

Answer:
a. Mutuality of contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1309
TRUE OR FALSE

Compliance with a contract cannot be left to

the will of one of the contracting parties but
the determination of its performance may be
left to a third person.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1309

Answer:
TRUE

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1310
Multiple Choices
The determination shall not be obligatory if it
is
a. Inequitable
b. Evidently Inequitable
c. Equitable
d. Evidently Equitable

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1310

Answer:
b. Evidently Inequitable

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1311
Identification

Stipulation in a contract clearly and

deliberately conferring a favor upon the third
person.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1311

Answer:
Stipulation pour autrui

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1312
Identification

A right binding against the whole world and

attaches to the property over which it is
exercised wherever it goes

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1312

Answer:
Real Right

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1313
TRUE OR FALSE

Creditor has no right to impugn the contracts

of the debtor intended to defraud him, since
he is not a party to the contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1313

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1314
TRUE OR FALSE

A third person can be sued for damages for his

warranted interference with the contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1314

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1315
Identification

A contract which is perfected by mere

consent.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1315

Answer:
Consensual Contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1316
TRUE OR FALSE

Real Contracts are perfected not merely by

consent but by delivery.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1316

Answer:
TRUE

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1317
True or False

A person is bound by the contract of another

of which he has no knowledge or to which he
has not given his consent.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1317

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1318
Identification

This element of a contract is also known as the

requisites of a contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 2: Essential
Requisites of
Contracts
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1318

Answer:
Essential Elements

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1319
Identification

A proposal made by one party to another,

indicating a willingness to enter into a
contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1319

Answer:
Offer

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1320
True or False

An acceptance may be expressed or implied.

As a rule, mere silence can be construed as
acceptance.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1320

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1321
True or False

The person making the offer has the right to

prescribe the time, the place, and the manner
of acceptance, all of which must be complied
with.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1321

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1322
Identification

An offer made to an _____ is accepted from

the time acceptance is communicated to him.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1322

Answer:
Agent

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1323
True or False

An offer may be revoked at any time before it

is accepted by communicating such
intentions to the other party.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1323

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1324

Kit offers to construct the house of Kat for a

very reasonable price of ₱1,000,000 giving the
latter 10 days within which to make up his
mind. Can Kit withdraw his offer?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1324

Answer:
Kit may withdraw his offer before the lapse of
10 days unless Kat has already accepted the
offer.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1325
Multiple Choice
Which of the following is a definite offer?
A. "For sale: 200 sqm lot at Happy village,
Quezon city for ₱1,000,000 - Tel No. 1234567"
B. "For sale: 200 sqm lot at Happy village,
Quezon city located at the corner of
Manggahan street for ₱1,000,000 cash - Tel
No. 1234567
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1325

Answer:
B. "For sale: 200 sqm lot at Happy village,
Quezon city located at the corner of
Manggahan street for ₱1,000,000 cash - Tel
No. 1234567
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1326
Multiple Choice

Are advertisements for bidders considered as

definite offer?
A. Yes
B. No
C. Maybe
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1326

Answer:
B. No

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1327
Enumeration

Who cannot give consent to a contract?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1327

Answer:
Unemancipated minors and Insane or
demented persons, and deaf-mutes who do
not know how to write

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1328
Identification

A temporary period of sanity.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1328

Answer:
Lucid Interval

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1329
True or False

A contract is valid where the minor

misrepresents his age and convincingly led
the other party to believe in his legal capacity.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1329

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1330
Enumeration

What are the 5 (five) Vices of consent?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1330

Answer:
(1) Error or mistake
(2) violence or force
(3) intimidation or threat
(4) Undue influence
(5) fraud or deceit
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1331
Identification

it is the false notion of a thing or a fact

material to the contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1331

Answer:
Mistake or error

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1332
True or False

When one of the parties is unable to read, or if

the contacts is in language not understood by
him, and mistake or fraud is alleged, the
person enforcing the contract must show that
the terms thereof have been fully explained to
the former.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1332

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1333
True or False

There is a mistake if the party alleging it knew

the doubt, contingency or risk affecting the
object of the contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1333

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1334
Identification

it arises from the ignorance of some provision

of law, or from erroneous interpretation of its
meaning.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1334

Answer:
Mistake of law

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1335
Enumeration

Requisites for intimidation to vitiate the

consent

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1335
Answer:
(1) produces a reasonable and well-grounded
fear of an evil
(2) evil must be imminent and grave
(3) evil must be upon his person or property, or
that of his spouse, descendants, or ascendants
(4) the reason why he enters the contract
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1336
True or False

Violence or intimidation shall annul the

obligation.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1336

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1337
Identification

an act where a person takes improper

advantage of his power over the other.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1337

Answer:
Undue influence

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1338
Identification

the fraud committed by one party before or at

the time of celebration of the contract to
secure consent of the other.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1338

Answer:
Causal fraud

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1339
Identification

The failure to disclose facts which a party to a

contract knows and ought to communicate
constitutes what?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1339

Answer:
Concealment

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1340
True or False

Usual exaggerations in trade are not in

themselves fraudulent.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1340

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1341
True or False

Giving a mere expression of an opinion

signifies fraud.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1341

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1342
A bought a land of B for ₱2,000 per sqm. The
reasonable price of lands in the same vicinity
is ₱2,500 per sqm but B sold it only for ₱2,000
sqm because C had deceived him regarding
its market value.
Can the contract be annulled?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1342

Answer:
No, it cannot be annulled unless it can be
shown that A was a party to the fraud.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1343
True or False

A sold a ring to B. A honestly believed that

what he sold to B was a diamond ring, it
turned out that is was not. The
misrepresentation of B is a mere mistake and
the contract is voidable.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1343

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1344
Enumeration

Two (2) kinds of fraud in the making of a

contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1344

Answers:
Causal Fraud and
Incidental Fraud

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1345
Identification

An act of deliberately deceiving others, by

feigning or pretending by agreement, the
appearance of a contract which is either non-
existent or concealed.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1345

Answers:
Simulation of a contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1346
Enumeration

2 (two) Kinds of simulation of a contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1346

Answers:
Absolute simulation and
Relative simulation

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1347
Multiple Choice
Is the object same with object of a contract?
a. Yes, they are both the subject matter of a
contract
b. No, the former is the thing/rights/service
while the latter is the subject matter
c. No, the former is the subject matter and the
latter is the object of the obligation
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1347

Answer:
b. No, the former is the thing/rights/service
while the latter is the subject matter

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1348
Identification

Any property or right, not in existence or

capable of determination at the time of the
contract, that a person may inherit the future

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1348

Answer:
Future inheritance

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1349
True or False

The object of every contract must be

determinate as to its kind. At the same time,
when the quantity is not determinate, it shall
be an obstacle to the existence of the
contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1349

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1350
Enumeration

3 (three) Classifications of contracts

according to cause

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1350

Answer:

11.. Onerous
2. Renumeratory
2.
3. Gratuitous
3.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1351
Identification

Purely personal or private reason which a

party has in entering into a contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1351

Answer:
Motive

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1352
Enumeration

Requisites of cause

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1352

Answer:
1. It must exist at the time the contract is
1.
entered into
2. It must be lawful
2.
3. It must be true or real
3.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1353
Identification

This means that the contract states a valid

consideration but such statement is not
true.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1353

Answer:
Falsity of cause

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1354
A issued in favor of B a promissory note
which states "30 days after date, I promise to
pay B or order the amount of ₱10,000."
Signed by A.
The promissory note does not mention the
consideration; what does the law presume?
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1354

Answer:
The law presumes that A must have received a
consideration for the debt and that the same
is lawful. If A claims otherwise, he has the
burden to prove otherwise.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1355
Identification

Any damage caused by the fact that the

price is unjust or inadequate.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1355

Answer:
Lesion

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 3: Form
of Contracts
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1356

Will the contract be considered as valid if it

is not in writing even though the law
requires it to be in writing?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1356:
Answer:
No, because according to Article 1356, a contract is a
contract in whatever form it may be, unless the law
requires that it be in writing for it TO BE VALID OR
ENFORCEABLE.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1357

Y and Z entered into a contract of sale of a parcel of land.

The sale is embodied only in a private document and not in
a public instrument because it was not acknowledged
before a notary public as required by law. What rights are
acquired by the contracting parties?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1357
Answer:

The right of the contracting party is to compel the

other party to execute the formalities required by
law.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1358

Suppose A is leaving for the United States to study

for two years. Then, he appoints B, agent, to manage
his property. Is the authority of B to administer the
property of A required to be in a public document?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1358

Answer:
Yes, because according to Article. 1358 No. (3) the
power to administer property, or any other power
which has for its object an act appearing or which
should appear in a public document.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Bonus Part: Chapter 3

General rule regarding form of contracts?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Bonus Part: Chapter 3

Answer:

(1) Contracts are binding

(2) Enforceable reciprocally
(3) Provides all 3 essential requisites (COC)

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 4:
Reformation of
Instruments
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1359

What are the requisites under Article 1359?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1359
Answer:
Meeting of the minds of the parties to the contract
The written instrument does not express the true intention of
the parties;
The failure to express due to mistake, fraud, inequitable
conduct, or accident;
The facts upon which relief by way of reformation of the
instrument is sought are put in issue by the pleadings;
There is clear and convincing evidence1 of the mistake, fraud,
inequitable conduct, or accident.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1359

Cedie sold his mansion to Princess Sarah. It

was agreed that the sale will include all the
furniture and appliances inside the mansion.
However, the contract as signed by the
parties, states that the mansion is being sold
excluding the furniture pieces and
appliances.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1359

Answer:
In this case, the remedy is reformation because there has been a
meeting of the minds. If Cedie was willing to sell the mansion
excluding the furniture and appliances, while B was willing to buy
the mansion including the furniture and appliances, there has been
no meeting of the minds and therefore the remedy is annulment.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1360
(Identification)

In case of conflict between the provisions

of the New Civil Code and the principles of
general law on reformation, the former
prevails. The latter will have only
effect.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1360
Answer:

The latter will have only suppletory effect.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1361
TRUE OR FALSE

When a mutual mistake has been committed

by both parties, the instrument concerned
cannot be reformed.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1361

Answer:
False. It can be reformed.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1362

Gary unintentionally give the wrong land title as

donation to Harry. Is Gary will have the right to ask for
the reformation?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1362
Answer:

Yes, because Gary was mistaken in good faith. So, he will be

granted a right to ask for reformation.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1363
Anna owed 1M to Elsa and agreed to give Elsa
her diamond ring which is equivalent to her
debt. When Anna delivered the diamond ring
to Elsa, Elsa noticed that the diamond ring
was 4x more than the amount that Anna
owed but Elsa concealed it from Anna. Who is
entitled to reformation?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1363
Answer:
Anna is entitled to reformation because according to Article
1363, the person who is guilty of concealment, which is Elsa,
cannot ask for reformation. It can only be availed by the
party who acted in good faith which is Anna.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1364

What are the 4 instances on the part of the person

drafting the instrument or of the clerk or typist
where the court may order that the instrument be
reformed?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1364
Answer:
(1) Ignorance,
(2) lack of skill,
(3) negligence,
(4) bad faith

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1365

Are two parties allowed for reformation of

instrument for instance of mortgage or pledge
stated as a sale?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1365
Answer:

Yes, the reformation of the instrument is proper

when the true intention appears to be differ from
what is expressed in the instrument.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1366

There shall be no reformation in the

following cases:

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1366
Answer:

(1) Simple donations (inter vivos) wherein no condition is imposed;

(2) Wills;
(3) When the real agreement is void

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1367
Anna, who is in need of money, negotiated a
contract of chattel mortgage with Ben using
Anna’s Car for security. Through machination
perpetrated by Ben, Anna signed a document of
sale believing that it was a chattel mortgage.
Later Ben filed a case against Anna for delivery of
the car based on the deed of sale. Can Ben seek
for Reformation?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1367
Answer:
The action failed. Ben can no longer seek the reformation of
the instrument to consider it a chattel mortgage. He is
stopped because the law has deemed him to have waived
the action for reformation.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1368
(Multiple Choice Question)
Reformation is not the proper remedy if
A. The mutual mistake of the parties causes the failure of the instrument to
disclose their real agreement.
B. One party was mistaken and the other acted fraudulently or inequitably
in such a way that the instrument does not show their true intention.
C. There was mistake, fraud, inequitable conduct or accident which
prevented the meeting of the minds of the contracting parties.
D. The true intention of the contracting parties is not expressed in the
instrument purporting to embody the agreement by reason of mistake,
fraud, inequitable conduct or accident.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1368
Answer:

C. There was mistake, fraud, inequitable conduct or accident

which prevented the meeting of the minds of the contracting
parties.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1369
TRUE OR FALSE

The procedure for the reformation of instruments shall be ruled

by how the parties involved.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1369
Answer:
False. It shall be governed by rules of court.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Bonus Part: Chapter 4

_______ in contract law is a legal remedy in which

the court rewrites the contract to ensure both
parties' true intentions are reflected

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Bonus Part: Chapter 4

Answer:

Reformation

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 5:
Interpretation
of Contracts
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1370
Identification

Process of ascertaining the intention of

the parties from the written words
contained in the contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1370
Answer:
Interpretation of a contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1371
Multiple Choice
A and B has entered into a contract of donation. A will received a land
as donation from B. Although the contract refers A as the donee and B
as the donor, it states that B will receive P500,000 in exchange for the
land he donate. By their acts, the parties clearly indicate that their
intention is to sell the land to A. What will be the court's interpretation
in regards to the intention of the parties?
a. The contract is void
b.The contract is interpreted as donation
c.The contract is interpreted as sale
d.None of the above
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1371
Answer:
C. The contract is interpreted as sale

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1372
Situational

S sold his house “including all the

furniture therein.” The term “all”
should be understood to include S’s
refrigerator?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1372
Answer:
No because it is distinct and different
from “furniture.”

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1373
Situational
Mary owns two (2) cars: white and
black. The black car is owned by her
absolutely whereas the white car is
shared with her brother. Mary decided
to sell one of her cars. However, her
brother did not give consent to the
sale. Which car is Mary entitled to sell?
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1373
Answer:
The black car because it is owned by her
alone. Hence, it would make the contract
effectual.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1374

When interpreting the content of a

contract, should the parties only
interpret a part of the contract?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1374
Answer:
No, contracts should be interpreted as a
whole.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1375

If the words written in the contract

have different significations, how
should it be understood?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1375
Answer:
In essence which is most keeping with the
nature and object of the contract/ based
on the nature and object of the contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1376
True or False

The usage or custom of the place shall

be borne in mind in the interpretation
of the ambiguities of a contract.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1376
Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1377
True or False

If there is an ambiguity in the contract

of insurance (adhesion) it should be
taken against the insurer.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1377
Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1378

The doubt shall be settled in favor of

the greatest reciprocity of interests if
the contract is...

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1378
Answer:
Onerous

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1379
Identification

What sections of Rules of Contract are

included in making or constructing a
contract?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1379
Answer:
Section 8 to 17

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 6:
Rescissible
Contracts
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1380
Identification
Those contracts validly agreed upon
because all the essential elements
exist and, therefore, legally effective,
but in the cases established by law, the
remedy of rescission is granted in the
interest of equity.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1380
Answer:
Rescissible Contracts

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1381
Multiple Choice
Statement 1: An absentee is a person who disappears from his
domicile, his whereabouts being unknown, and without
leaving an agent to administer his property.
Statement 2: A ward is a person under guardianship by reason
of some incapacity.

A. Both statements are True

B. Both statements are False
C. Only Statement 1 is True
D. Only Statement 2 is True
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1381
Answer:
A. BOTH STATEMENTS ARE TRUE

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1382

Can the creditor rescind the contract

if the debtor is unable to meet his
obligations in due?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1382
Answer:
Yes, provided that the debtor is able to
give back the object to the creditor.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1383
Identification
The action for this is not principal
remedy, instead it is only subsidiary
which can be availed of only if the
injured party proves that he has no
legal means to obtain reparation for
the same.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1383
Answer:
Rescission

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1384
Situational
A, the guardian of B, a minor, was
authorized by court to sell two cars
valued 100,000 each. A sold the two
cars to C for only 100,000. Is the entire
contract need to be rescinded?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1384
Answer:
No, the recission may properly repaired or
covered by partial recission.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1385
True or False

If the object of the contract is in the

possession of a 3rd person who did
not act in bad faith, rescission can
take place.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1385
Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1386

If a contract entered into in behalf of a

ward or absentee has been approved
by the court, can recission take place?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1386
Answer:
No, recission cannot take place

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1387
Situational
A is a creditor of S that obtained a writ
of attachment in his favor. Then S sold
to C another parcel of land that has not
been levied or upon or attached. Does
J who is another creditor of S have the
right to rescind the sale to C?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1387
Answer:
Yes, because the law says that “the
decision or attachment need not have
been obtained by the party seeking the
rescission.”

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1388
Identification

It does not simply connote bad

judgments or negligence. It imports a
dishonest purpose or some moral
obliquity and conscious doing of
wrong.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1388
Answer:
Bad Faith

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1389

Who are the persons entitled to bring

action for rescission?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1389
Answer:
1. The injured party or the defrauded creditor
2. His heirs, assigns, or successors in interest;
or
3. The creditors of the above entitled to
subrogation

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 7:
Voidable
Contracts
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1390
(identification)

Contracts that contain all the essential requisite

of a valid one, but one of the parties is incapable
of giving consent, vitiated consent by mistake,
etc.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Answer:
Voidable or Annullable Contracts

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Which one is false when the
action for annulment shall be
brought within four years?
(Multiple Choice)
A. In case of intimidation, violence or undue influence, from the
time defect of the consent ceases
B. In case of mistake or fraud, from the time of discovery of the
same time
C. When the action refers to contracts entered into by minors or
other incapacitated persons, from the time the guardianship
ceases
D. None of the above
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Answer:
D. None of the above

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1392
Identification

_____ means that one voluntarily approves

some defective or unauthorized act or
contract which, without his subsequent
approval or consent, would not be binding
on him.
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1392
Answer:
Ratification

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1393
Enumeration

What are the requisites for implied

ratification?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1393
Answer:
1. There must be knowledge of the reason which
renders the contract voidable;
2. Such reason must have ceased; and
3. The injured party must have executed an act which
necessarily implies an intention to waive his right.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1394
Enumeration

Who are the qualified persons that can ratify

the contract entered into by an
incapacitated person?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1394
Answer:
1. Their guardian; or
2. The injured party himself, provided he is
already capacitated.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1395

In a Voidable Contracts, A contract between S and B.

If S is the contracting party. Does B need's S consent
to Annul the contract?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1395
Answer:

No!, Since according to Article 1395, Ratification does not

require the conformity of the contracting party who has
no right to bring the action for annulment. In other
words, the contracting party can't invoke the annulment.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1396
Mark who is a minor sold his property to Cristine. The sale
is voidable due to Mark’s minority. After reaching the age
of majority, Mark borrowed money from
Christian.Disgusted with Christian’s charges of high
interest, Mark ratified the sale he made in afavor of
Christine. Mark’s intention was to avoid paying his
obligation to Christian.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1396
Answer:

Christian may rescind the sale made by Mark when he

was still a minor. The retroactiveeffect of the ratification
which cleanses the voidable contract of its defectfrom its
inception will not affect or prejudice the rights of
Christian who is a ninnocent third person

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1397

What are the requisites required to bring an action

for annulment of a contract

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1397
Answer:

11.. The plantiff must have an interest in the contract

2.
2. The victim and not the party responsible for the
defect is the person who must asset the same

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1398
MCQ

If the contract is annulled, the parties, as a

general rule must restore to each other the ff:
a. The subject matter of the contract with its fruits
b. The price thereof with legal interest
c. All of the above
d. None of the above
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1398

Answer:
c. All of the above

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1399
True or False

Does the incapacitated person is obliged to

make restitution only to the extent that he
was benefited by the thing or price received
by him?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1399

Answer:

True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1400
Situational
Snoogums Boogums sold her plow and
carabao to Cuppy Cake. On the petition of
Snoogums Boogums the contract was
annulled by the court. But the carabao died in
the possession of Cuppy Cake through her
fault. What will be the remedy?
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1400

Answer:

Cuppy Cake must pay the value of the

carabao at the time of its death, with interest
from the same date.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1401
True or False

The action for annulment shall not be

extinguished only if the loss is through the
fault or fraud of the plaintiff.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1401

Answer:

False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1402
Situational

When a contract is annulled, a reciprocal

obligation of restitution is created. What is
the effect when a party cannot restore
what he is bound to return?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1402
Answer:
There will be no annulment, and the other
cannot be compelled to comply with what
is incumbent upon him.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1403
Identification

Refers to those contracts that cannot be

enforced or given effect in the court of law or
sued upon.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1403

Answer:
Unenforceable Contracts

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1403
Identification

How would unenforceable contracts become

enforceable?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1403
Answer:
Through Ratification

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1403
Identification

It refers to those entered into in the name of

another person by one who has been given
no authority or legal representation.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1403

Answer:
Unauthorized Contracts

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1403
Identification

The ________ has been enacted not only to

prevent fraud but also to guard against the
mistakes of honest men.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1403

Answer:
Statute of Frauds

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 8:
Unenforceable
Contracts
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1404
Multiple Choice
Statement 1: Those entered in the name of another person by one who has
been authorized shall render the contract unenforceable.
Statement 2: C is given the power to mortgage a land only up to that extent.
In this case C cannot dispose of the land as it is beyond his power.
A. Statement 1 and 2 is true
B. Statement 1 and 2 is false
C. Statement 1 is true; Statement 2 is false
D. Statement 1 is false; Statement 2 is true

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1404
Answer:

D. Statement 1 is false; Statement 2 is true

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1405
Identification

What are the ways of ratifying an

unenforceable contract?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1405
Answer:

By failure to object and by acceptance of

benefits.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1406
Identification

"When a contract is enforceable under the

Statute of Frauds, a ___________ is necessary
for its registration in the Registry of Deeds..."

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1406
Answer:

Public Document

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1407

When does unenforceable contract becomes a valid

contract?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1407
Answer:
If the ratification is made by the parents or guardians,
as the case may be, of both contracting parties after
attaining or regaining capacity, the contract is
validated.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1408

The party to the agreement is personally entitled to

invoke the defense of the statute. Thus, it must not be
formed by strangers to the agreement. True or False?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1408
Answer:
True
Statute of Frauds cannot be set up as a defense by
strangers to the transaction.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Chapter 9: Void or
Inexistent Contracts

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1409
It refers to the agreement which lack one or all of the
elements (consent,object and cause).

A. Solemn Contracts
B. Real Contracts
C. Inexistent Contracts
D. Consensual Contracts
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1409

Answer:
C. Inexistent Contracts

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1410
Badong sells to Jumong a flying horse and Jumong
paid him 10,000. Is the contract void? Can Jumong get
back the money he paid?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1410
Answer:
1. Yes, the contract is void because the flying horse is
inexistent and the contract is considered void. A void
contract cannot be ratified nor prescribed.
2. Jumong can file to the court a declaration of the
inexistence of the contract for him to get back the
money he paid to Badong.
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1411
Statement 1: If only one party is guilty of the illegality of
the cause or object of the contract, only the more
guilty party shall be prosecuted.
Statement 2: If both parties are in pari delicto, the
things or the price of the contract shall be confiscated.

A. Both statements are true.

B. Both statements are false.
C. Only statement 1 is true.
D. Only statement 2 is true.
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1411

Answer:
A. Both statements are true.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1412
Statement 1 : When the fault is on the part of both contracting parties,
neither may recover what he has given by virtue of contract.

Statement 2 : When only one of the contracting parties is at fault, he

can still recover what he has given by reason of the contract, or ask for
the fulfillment of what has been promised.

A. Both statements are true

B. Both statements are false
C. Only statement 1 is true
D. Only statement 2 is true

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1412

Answer:
A. Only statement 1 is true

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1413
Statement 1: A stipulation for the payment of usurious interest is
valid.
Statement 2: Interest paid in excess of the interest allowed by the
usury laws may be recovered by the debtor, with interest thereon
from the date of the payment.
A. Both statements are true
B. Both statements are false
C. Only statements 1 is true
D. Only statements 2 is true

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1413

Answer:
D. Only statements 2 is true

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1414
True or False

When money is paid or property delivered for

an illegal purpose, the contract may not be
repudiated by one of the parties before the
purpose has been accomplished, or before
any damage has been caused to a third
person.
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1414
Answer:

False. The contract may be repudiated by one

of the parties before the purpose has been
accomplished, or before any damage has
been caused to a third person even when
money is paid or property is delivered for an
illegal purpose.
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1415
E, an insane person, paid P1000 to D but had to hide
his cousin F from the police because he was wanted
and charged with a crime. Can E get his money back
from D?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1415
Answer:
Answer: Yes, since E is an insane person and incapable
of giving consent, the court may allow her to recover
the money paid if the interest of justice so demands

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1416
Recovery is permitted, provided:
1. The agreement is not illegal per se but is merely prohibited;
2. The prohibition is designed for the protection of the
defendant; and
3. Public policy would be enhanced by allowing the
defendant to recover what he has paid or delivered.

A. Only statement 1 is correct

B. Only statements 1 & 2 are correct
C. Only statements 2 & 3 are correct
D. All statements are correct
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1416

Answer:
A. Only statement 1 is correct

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1417
A statute fixing the maximum price of any article or
commodity is known as:
A. Usury Law
B. Ceiling Law
C. Civil Law
D. Public Law

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1417
Answer:
Answer: B. Ceiling Law

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1418
Renejay, a regular who works more than 8 hours
everyday but the company he works does not pay his
overtime hours. Can Renejay demand additionak
compensation for working overtime knowing that the
law fixes normal work hours not exceeding 8 hours a
day.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1418
Answer:
Renejay can demand additional payment since the law
expressly provided the right of workers to get paid
during their overtime hours.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1419
If an employee, a minimum wage earner, receives less
than the minimum wage rate, he can no longer recover
the deficiency since he already accepted the inexact
minimum wage rate.
True or False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1419
Answer:
False. If an employee receives less than the minimum
wage rate, he can still recover the deficiency with legal
interest, and the employer shall be criminally liable.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1420
In case of doubt on whether the terms of contract are
indivisible or divisible, the same will be presumed as
divisible.
True or False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1420
Answer:
Answer : True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1421
The defense of illegality of contracts is not available to
third persons whose interests are not directly affected.
True or False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1421

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1422
MCQ
Statement 1: A contract which is the direct result of a
previous illegal contract, is also void and inexistent.
Statement 2: A void contract can give rise to a valid one.
A. Both statements are true
B. Both statements are false
C. Only statement 1 is true
D. Only statement 2 is true
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1422
Answer:

C. Only statement 1 is true

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 TITLE III
NATURAL
OBLIGATIONS
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1423
Statement 1: Civil obligations arise from law, contracts, quasi-contracts,
delicts, and quasi-delicts (Art. 1157.), while natural obligations are based
not on positive law but on equity.

Statement 2: Natural obligations do not grant such right of action to

enforce their performance while Civil obligations give a right of action
in courts of justice to compel their performance or fulfillment

A. Both statements are true

B. Both statements are false
C. Only statement 1 is true
D. Only statement 2 is true
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1423

Answer:
A. Both statements are true

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1424
By prescription (acquisitive), one acquires ownership
and other personal rights through the lapse of time in
the manner and under the conditions laid down by law.
In the same way, rights and actions are not lost by
prescription (extinctive).
True or False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1424

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1425
Annie owes Bunny Php 10,000.00. But the guilt quickly
shifts. Canny then pays Bunny the above amount,
against Annie's consent. Annie here does not have to
reimburse Canny because Anny has not at all been
benefited by the transaction. However, Annie later
voluntarily reimburses Canny. Can Annie take back
what she gave Canny?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1425

Answer:
No more. This is the express provision of the law.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1426
Situational

Suppose Edward, a minor sold his truck for 25,000 to

Kairi without his parents' consent. After selling his
truck, he lost 2,000 due to a fortuitous event. If the
contract is annulled, how much is Edward obliged to
return?

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1426
Answer:
Edward is obliged to return only 23,000 since the 2,000
was lost due to fortuitous event. However, he has the
natural obligation to return the full amount of 25,000. If
he willingly returned the 25,000 (whole amount), there
is no right to demand the same.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1427
True or False

When a minor between 18 and 21 years of age,who has

entered into a contract without the consent of the
parent or guardian, voluntarily pays a sum of money or
delivers a fungible thing in fulfillment of the obligation,
there shall be no right to recover the same from the
obligee, who has spent or consumed it in good faith.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1427

Answer:
True

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1428
MCQ
Cath, the creditor, sued Devin, debtor, for non-payment of the
latter’s obligation. Devin won the case on technicality.
Nevertheless, when Cath asked D for payment again, D paid
him. Now, Devin demands the return of what he has paid
claiming he should not have paid Cath. Is Devin correct?

A. Yes
B. No
C. Maybe
D. None of the above
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1428
Answer:
B. No, Devin is not correct. Knowing the fact that Devin
won the case, he is not obliged for payment. But still
he voluntarily paid his obligations. He must be deemed
to have considered it his moral duty to fulfill his
obligation, even if he had no more obligations to Cath
under the law. Nevertheless, Devin cannot demand
the return of what he has already paid.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1429
True or False
When a testate or intestate heir voluntarily
pays a debt of the decedent exceeding the
value of the property which he received by will
or by the law from the estate of the deceased,
the payment is valid but can be rescinded by
the payer.

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1429

Answer:
False

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1430
MCQ
The act of disposition by the testator in separating from
the inheritance for definite purposes, things, rights, or a
definite portion of his property.
A. Succession
B. Legacy
C. Endowment
D. None of the above
Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr
 Article 1430

Answer:
B. Legacy

Hector S. De Leon
Twelfth Edition
Hector M. De Leon, Jr