Oblicon Law 10 Quiz 1

10 QUIZ 1
Answer the following items. (4 items x 5 points)
1. What shall prevail when the words and clauses of a written contract are in conflict with the manifest
intention of the parties?
Where the words and clauses of a written contract are in conflict with the manifest intention of the
contracting parties, the latter shall prevail over such clauses and words, and, however general may be the
terms of the agreement, the contract cannot be understood to include things and cases different from those
with regard to which the persons interested intended to contract.
According to Article 1281 of the Civil Code provides that “If the words should appear contrary to the
evident intention of the contracting parties the intention shall prevail”. And according to Article 1283, it
prescribes that “However general the terms of a contract may be, there should not be understood as included
therein things and cases different from those with regard to which the persons interested in intended to
contract”.
2. One of the conditions of RJ’s life insurance is that the insured must notify C’est La Vie Insurance of other
existing policies upon his life. If not, the policy shall be null and void. RJ got ill and failed to inform the insurer
about his other existing policies upon his life. May RJ recover from C’est La Vie Insurance?
RJ cannot recover from C'est La Vie Insurance since he violated the condition stipulated under the
insurance contract requiring him to notify C'est La Vie Insurance of other existing policies upon his life. While
it is a cardinal principle of insurance law that a policy or contract of insurance is to be construed liberally in
favor of the insured and strictly against the insurer company, yet contracts of insurance, like other contracts,
are to be construed according to the sense and meaning of the terms which the parties themselves have
used. If such terms are clear and unambiguous, they must be taken and understood in their plain, ordinary
and popular sense. Moreover, obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith.
3. Architect Fabio designed and supervised the interior design of Atheena’s condominium unit in Makati City.
Since Fabio and Atheena are close friends, they did not bother to talk about Fabio’s professional fee. How
much is Atheena bound to pay Fabio?
Athena is bound to pay Fabio on a quantum meruit basis. Quantum meruit means that in an action
for work and labor, payment shall be made in such amount as the plaintiff reasonably deserves. To avoid
unjust enrichment to a party from resulting out of a substantially performed contract, the principle of quantum
meruit may be used to determine his compensation in the absence of a written agreement for that purpose.
The principle of quantum meruit justifies the payment of the reasonable value of the services rendered by
him. Under the principle of quantum meruit, a contractor is allowed to recover the reasonable value of the
services rendered despite the lack of a written contract. The measure of recovery under the principle should
relate to the reasonable value of the services performed.52 The principle prevents undue enrichment based
on the equitable postulate that it is unjust for a person to retain any benefit without paying for it. Being
predicated on equity, the principle should only be applied if no express contract was entered into, and no
specific statutory provision was applicable.
This study source was downloaded by 100000865246276 from CourseHero.com on 05-13-2023 07:30:21 GMT -05:00
https://www.coursehero.com/file/93280488/OBLICON-LAW-10-QUIZ-1docx/
4. Atheena sold to Mikaela her condominium unit including all its contents. But in the condominium unit, there
is a painting by Fernando Amorsolo that Atheena sold to Janine with Mikaela’s consent. Is the painting
included in the sale of the condominium unit?
Yes, the painting is included in the sale of the condominium unit. However, Mikaela seemed to have
waived his right over the same for agreeing with Atheena to sell it to others. The parties are free to stipulate
whatever terms they wish to subject only to the limitations prescribed by law. There is nothing that prohibits
them to exclude a single property from a sale of a condominium unit which supposedly includes all its
contents. According to Article 1306 of Civil Code, the contracting parties may establish such stipulations, clauses,
terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs,
public order, or public policy.
This study source was downloaded by 100000865246276 from CourseHero.com on 05-13-2023 07:30:21 GMT -05:00
https://www.coursehero.com/file/93280488/OBLICON-LAW-10-QUIZ-1docx/
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10 QUIZ 1

Answer the following items. (4 items x 5 points)

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