Psba-Qc Quiz #3

PSBA-QC
Quiz #3
Name: Grimaldo, Carl Ivan A.

Course: BSBA-FM
1. Define the following:

 Contract
 A written or spoken agreement, especially one concerning employment,
sales, or tenancy that is intended to be enforceable by law.
 stipulation pour autrui
 Stipulation pour autrui gives the third-party beneficiary a cause of action
against the promisor for specific performance.
 Consent
 Consent means that there has been an offer and an acceptance of the
cause and object of the contract. The acceptance must be conveyed to
the party making the offer.
 mistake of law
 A mistake involving the misunderstanding or incorrect application of law
with regard to an act or transaction.
 future inheritance
 Future inheritance is any property or right not in existence or capable of
determination at the time of the contract, that a person may in the future
acquire by succession.
 Motive
 In a legal context, motive is the reason a person may have committed a
crime.
 formal contract
 A formal contract is a contract where the parties have signed under seal,
while an informal contract is one not under seal. A seal can be any
impression made upon the document by the parties to the contract.
2. May a third person acquire rights under a contract to which he is a stranger thereby?
Explain.
 The third person has no rights and obligations under a congtract to which
he is a stranger. When the third person was affected by a contract. In
contracts contain a stipulation in favor of a third person( stipulation pour
autrui )
3. When will a person be bound by a contract entered into by another?
 A “binding contract” is any agreement that's legally enforceable. That
means if you sign a binding contract and don't fulfill your end of the
bargain, the other party can take you to court.
4. When is a contract voidable or annullable?
 contracts are voidable or annullable, even though there may have been
no damage to the contracting parties:
 Those where one of the parties is incapable of giving consent to a
contract;
 Those where the consent is vitiated by mistake, violence, intimidation,
undue influence or fraud.
5. Give the requisites in order that intimidation may vitiate or annul a consent of a party to
a contract.
 that the intimidation must be the determining cause of the contract, or must
have caused the consent to be given
 that the threatened act be unjust or unlawful
 that the threat be real and serious, there being an evident disproportion
between the evil and the resistance which all men can offer,
6. Will the acceptance of a business advertisement of a thing for sale produce the
perfection of a contract? Explain.

7. Give the requisites of things as object of a contract.
 The thing must be within the commerce of men, that is, it can legally be the
subject of commercial transaction
 It must not be impossible, legally or physically
 It must be in existence or capable of coming into existence; an
 It must be determinate or determinable without the need of a new contract
between the parties
8. May a contract be entered upon future inheritance? Why?
 The law permits contracts on future inheritance
 In the case of donation by reason of marriage between future spouses with
respect to their future property to take effect, only in the event of death, to the
extent laid down by law in testamentary succession;
9. Give the requisites of cause in a contract.
 Causa - the essential or more proximate purpose which contracting parties have
in view at the time of entering into a contract
10. What is the object and what is the cause in a contract of sale?

11. Define the following:
 Reformation - is a court's equitable power to modify a contract to reflect the
parties' true intent where some error has been committed.
 Mutual mistake - occurs when the parties to a contract are both mistaken about
the same material fact within their contract.
 Interpretation of contract - is the determination of the meaning of the terms or
words used by the parties in their contract.
 Contract of adhesion - also known as a “boilerplate” contract or a “standard
form” contract, is an agreement between parties whereby one party (the one
with a higher bargaining power) sets out all or most of the terms of the contract.
 Future inheritance - is any property or right not in existence or capable of
determination at the time of the contract, that a person may in the future
acquire by succession.
 Motive - the indirect or personal reason for the contract; does not affect the cause; its
illegality does not affect the contract's validity
12. What is the reason why the law in certain cases permits a written instrument to be
reformed or corrected?
 Since entering into a contract wherein the reformation of an instrument requires
that the so called intention of both parties must be expressed truly
13. In what way is reformation of written instrument distinguished from the annulment of a
contact?
 In reformation of a written instrument, it is, expected that there was a meeting
of minds, but the only issue is that the written instrument did not reveal the true
intention of the parties and this ca be due.
14. What should be followed in the interpretation of contract, its terms or the intention of
the parties?
 A contract must be interpreted as a whole and the intention of the parties is to
be gathered from the entire instrument and not from particular words, phrases,
or clauses. All provisions should, if possible, be so interpreted as to harmonize
with each other.
15. Suppose a stipulation or word in a written contract is susceptible of various
interpretations, what interpretation or meaning should be given to it?
 Stipulation - the interpretation which is most adequate to render it effectual will
be used.
16. State the rule of interpretation where there are various stipulations of a contract.
17. According to article 1374,

the various stipulations of a
contract shall be
18. interpreted together,
attributing to the doubtful
ones that sense which may
19. result from all of them
taken jointly. Thus, contract
must be interpreted as a
20. whole and the intention of
the parties is to be gathered
from the entire
21. instrument and not from
particular words, phrases, or
clauses. All provisions
22. should, if possible, be so
interpreted as to harmonize
with each other
contract shall be
from the entire
with each other
contract shall be
from the entire
with each other
contract shall be
from the entire
with each other
 according to article 1374, the various stipulations of a contract shall be
interpreted together, attributing to the doubtful ones that sense which may
result from all of them taken jointly.

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PSBA-QC

Name: Grimaldo, Carl Ivan A.

1. Define the following:

17. According to article 1374,

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