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BOBO NOTES

OBLIGATIONS
F 1. Consent is an essential requisite of obligation.
F 2. A thing is indeterminate if it is not physically segregated from
all others of the same class.
F 3. In obligations with a term, the obligation arises upon the
arrial of the period.
F !. In obligations with a penal clause, the debtor may e"empt
himself from the performance of the obligation by paying the
penalty.
F #. $he insolency of one debtor will increase the liability of his
co%debtors.
F &. $he indiisibility of an obligation necessarily gies rise to
solidarity.
F '. (heneer a period is designated in an obligation, it is for the
bene)t of both the creditor and debtor.
F *. (hen the ful)llment of the obligation is dependent upon the
sole will of the debtor, the conditional obligation shall be oid.
F +. In facultatie obligation, the right of choice belongs to the
debtor unless it has been e"pressly granted to the creditor.
EXTINGUISHMENT OF OBLIGATIONS
FA,-. 1. Consignation, to be alid, generally requires a prior
tender of payment
$/0. 2. Consignation of the amount required is not necessary to
presere the right to redeem.
$/0. 3. 1i2culty of serice authori3es release of obligor but
does not authori3e courts to modify or reise the
contract between the parties.
FA,-. 4. It is a concept that deries from the principle that since
mutual agreement can create a contract, mutual
disagreement can cause its extinguishment.
$/0. 5. (here an application for a loan of money was approed,
there arises a perfected contract een before the
deliery of the ob4ect of the contract.
FA,-. 6. If the obligation has been substantially performed, the
obligor shall recoer as though there had been a strict
and complete ful)lment.
7. 5less damages sufered by the obligee6
FA,-. 8. (hen the obligee accepts the performance 7nowing its
incompleteness or irregularity, the obligation is deemed
fully complied with. 5without expressing any protest or
objetion6
FA,-. !. 8ayment by a 4udgment debtor to the wrong party does
not e"tinguish 4udgment debt.
FA,-. 1". 9bligations requiring payment in foreign currency must
be discharged in 8hilippine currency as proided by #$
8183.
5#$ 52!6
$/0. 11. An agreement to pay a promissory note in dollars, while
null and oid under /A #2+ does not defeat a creditor:s
claim.
C./$IFICA$I
9;
12. A <<<<<<<<<<<< implies that the chec7 is drawn upon
su2cient funds in the =.
$/0. 13. $he fact that the debtor had su2cient aailable funds=.
$/0. 14. Consignation presupposes not only that the obligor is
able, ready, and willing to pay but more so in the act of
performing his obligation.
15. >A proof that an act could hae been done is no proof
that it was actually done? supports the concept 7nown
as tender of payment.
$/0. 16. A certi)ed personal chec7 is not the legal tender nor the
currency contemplated, therefore cannot constitute alid
tender of payment.
$/0. 17. $he rule that in case of e"traordinary in@ation or
de@ation of the currency stipulated should superene,
the alue of the currency at the time of the
establishment of the obligation shall be the basis of
payment of obligations arising from law.
FA,-. 18. 0nder the principle of dation in payment, what is
transferred is merely the possession of the property.
5ownership6
1!. $here can be no dation in payment when there is no
obligation e"tinguished.
$/0. 2". $ender of payment may be e"tra4udicial.
FA,-. 21. Consignation is necessarily 4udicial.
CONTRACTS
A. Aoth false.
A. Aoth true.
C. $rue, false.
1. False, true.
1 1. Contracts must bind both parties, its alidity or termination cannot
be left to the will of one of them.
0nenforceable contracts are susceptible of rati)cation.
A 2. Contracts are perfected by mere consent.
/ati)cation requires conformity of the contracting parties.
A 3. Bista7e as to the quali)cations of one of the parties itiates
consent.
Contracts ta7e eCect between their parties, assigns and heirs.
A !. A mere e"pression of an opinion does not signify fraud.
Incidental fraud inalidates a contract.
C #. In contracts of pure bene)cence, the cause is the liberality of the
benefactor.
$he contract is oid if the cause is not stated in the contract.
C &. $he contracting parties may establish such stipulations, clauses,
terms and conditions as they may deem conenient.
Acceptance by letter or telegram binds the oCeror from the time the
letter or telegram is sent.
A '. An oCer made through the agent is accepted from the time
acceptance is communicated to the agent.
$here is iolence when in order to wrest consent, serious or
irresistible force is employed.
A *. Failure to disclose facts constitutes fraud.
/eal contracts, such as mutuum, pledge and guaranty are not
perfected until the deliery of the ob4ect of the obligation.
A +. Contracts of pure bene)cence are contracts without cause.
If the cause is not stated in the contract, it e"ists and is lawful.
C 1D. A contract may be oidable ee though there may hae been no
damage to the contracting parties.
$he action or defense for the declaration of the ine"istence of a
contract prescribes in 1D years.
8art $wo. Bultiple choice.
1. 9n February 11, 2DD3, 8erfecto oCered to sell his house and lot to
/eynaldo for 81,#DD,DDD.DD. 8erfecto told /eynaldo that he was
giing /eynaldo up to February 2*, 2DD3 to decide whether or not to
buy the house and lot. /eynaldo accepted the option but did not gie
anything to 8erfecto to support the option gien to him. 9n Bay 2D,
2DD3, 8erfecto found another buyer who was ready to buy the house
and lot for 82,DDD,DDD.DD. 8erfecto wants to as7 you whether he can
still withdraw the oCer he made to /eynaldo. 1ecide.
a. Ees, 8erfecto may withdraw the oCer because he stands to gain
an added pro)t of 8#DD,DDD.DD and this will be more than
enough to pay damages to /eynaldo.
b. Yes, Perfecto m! "#t$%r" t$e o&er b! '(st #)form#)*
Re!)+%o of s(c$ fct.
c. ;o, 8erfecto may not withdraw the oCer because the option
was accepted by /eynaldo although /eynaldo did not gie
anything in support thereof.
d. ;o, 8erfecto may not withdraw his oCer until the lapse of the
period gien to /eynaldo to e"ercise his option.
2. .lements that accompany certain contracts unless set aside or
suppressed by the parties, are 7nown asF
. Nt(r+ e+eme)ts c. Accidental elements
b. .ssential elements d. 9riginal elements
3. A contract where both parties are required to render reciprocal
prestations, are 7nown asF
. B#+ter+ co)trct c. Gratuitous contract
b. 0nilateral contract d. Commutatie contract
!. Contracts ta7e eCect only between the contracting parties, their
assigns and heirs e"cept in cases where obligations and rights arising
from the contracts are not transmissible by their nature, or by
stipulation or by proision of law. $his principle is 7nown asF
. Re+t#,#t! of co)trcts c. 9bligatory force of contracts
b. Butuality of contracts d. ,iberty of contracts
#. 9bligations arising from contracts hae the force of law between = C
5sorry incomplete6
&. 9ne of the following is not a real contractF
a. pledge c. +ese
b. commodatum d. mutuum
'. 9n Bay 1, 2DD2, - oCered to sell a speci)c car to A for 8#DD,DDD.DD.
A sent his letter of acceptance to - on Bay *, 2DD2. 9n Bay 1D,
2DD2, howeer, - died in a ehicular accident and his secretary
receied the letter or acceptance on Bay 12, 2DD2 unaware that -
had already died.
. $he contract was perfected on Bay *, 2DD2 when A sent his
letter of acceptance.
b. $he contract was perfected on Bay 12, 2DD2 when the
secretary of - receied the letter.
c. T$e co)trct "s )ot -erfecte% bec(se t$e o&er of S
becme #)e&ect#,e "$e) $e %#e%.
%. $he contract was perfected on Bay 1, 2DD2 because the
acceptance made by A on Bay *, 2DD2 retroacts to the date of
the oCer.
*. Bista7e in three of the following will ma7e a contract oidable. (hich
one will notH
. Bista7e as to the substance of the thing which is the ob4ect of
the contract
b. Bista7e as to the principal conditions which principally moed
one or both parties to enter into the contract.
c. Bista7e as to the identity or quali)cations of one of the parties,
where identity or quali)cations hae been the principal cause of
the contract.
%. S#m-+e m#st.e of cco()t.
+. It is the employment of serious or irresistible force to obtain
consent.
. Intimidation c. /#o+e)ce
b. $hreat d. Boral coercion
1D. It is present when one of the contracting parties is compelled
by a reasonable and well%grounded fear of an imminent and grae
eil upon his person or property or upon the person or property of
his spouse, descendants, and ascendants to obtain consentF
a. Iiolence c. I)t#m#%t#o)
b. 8hysical coercion d. Bista7e
MI0TERMS
$rue or False.
F 1. Acts and contracts which hae for their ob4ects the creation
transmission, modi)cation or e"tinguishment of real rights oer
immoable property must be in a public instrument to be alid
and binding. 5not %or &alidity but %or greater e'ay6
F 2. In consignation, before acceptance by the creditor, the
withdrawal of the sum or thing consigned by the debtor will be
a matter of right. 5i% made a%ter judiial onsignation6
F 3. Contract of lease for 2 years is unenforceable if not in writing.
5only i% lease o% real property6
$ !. $ender of payment is required only when the creditor refuses,
without 4ust causes, to accept payment.
F #. An action for rescission of a contract entered into to defraud a
creditor will prosper ! years from actual discoery of fraud.
5%rom time o% registration6
$ &. 0ndue in@uence shall annul the obligation, although it may
hae been employed by a third person who did not ta7e part in
the contract.
F '. In obligation to delier a determinate thing, the loss of the
thing while in the possession of the debtor shall be presumed
to be due to his fault. 5loss on oasion o% alamity(6
$ *. /escission shall be only to the e"tent necessary to coer the
damage caused by a contract in fraud of a creditor.
F +. A coneyance is presumed to be in fraud of creditor if made by
a debtor after a suit is )le against him while it is pending.
5on&eyane must be onerous title6
F 1D. A contract which is oid on its face cannot be the sub4ect of
reformation. 5the only the subjet o% re%ormation is the real
intention o% the parties6
F 11. 9nce a contract is perfected, though the same is not in the
form required by law, the contracting parties may compel each
other to obsere that form.
F 12. ,esion or inadequacy of cause shall not inalidate a contract,
unless there has been fraud, mista7e or undue in@uence.
$ 13. $he cause in a lucratie contract is the liberality of the
benefactor.
$ 1!. An oCer may become ineCectie upon insolency of either
party before acceptance is coneyed een if the insolency is
not 4udicially declared.
F 1#. A contract of sale entered into between spouses is oid.
$ 1&. A creditor to whom partial payment has been made may
e"ercise his right for the remainder and he shall be preferred to
the person who has been subrogated in his place in irtue of
partial payment of credit.
F 1'. If noation of the new obligation is oid, the original one shall
subsist.
F 1*. In obligation which is sub4ect to suspensie condition or term,
the happening of the condition or eent will gie rise to the
obligation
F 1+. Conditional obligation where the condition is both suspensie
and potestatie is oid.
F 2D. $hose obliged to delier or to do something incur in delay only
from the time the obligee 4udicially or e"tra4udicially demands
from them the ful)lment of the obligation.
F 21. ;o person shall be responsible for those eents which could not
be foreseen or which though foreseen were ineitable unless
there is an e"press stipulation to the contrary.
$ 22. $he indiisibility of an obligation does not necessarily gie rise
to solidarity.
F 23. A creditor cannot be compelled partially to receie the
prestations in which the obligation consists.
$ 2!. 8roof of actual damages suCered by the creditor is not
necessary in order that penalty may be demanded.
F 2#. A person alternatiely bound by diCerent prestations shall
completely perform all of them.
F 2&. Any waier of an action for fraud is oid.
F 2'. (hen the ful)llment of the condition depends upon the sole will
of the debtor, the conditional obligation shall be oid.
F 2*. In facultatie obligation, the right of choice belongs to the
debtor unless it has been e"pressly granted to the creditor.
F 2+. Impossible conditions, those which are contrary to good
customs or public policy and those prohibited by law are
deemed not agreed upon.
PARTNERSHIP AN0 AGENCY
$/0
.
1. Agency may be oral.
FA,-
.
2. ;otice of reocation in a newspaper of general
circulation is su2cient warning to third persons of the
reocation of agency.
$/0
.
3. $he principal may reo7e agency at will and compel the
agent to return the documents of agency.
$/0
.
!. $wo or more persons appointed for a common
transaction shall be solidarily liable to the agent for all
consequences of the agency.
$/0
.
#. $he limits of the agent:s authority are deemed e"ceeded
een if the act is more adantageous to the principal.
FA,-
.
&. If the agent acted in his own name, the principal has no
right of action against the person with whom the agent
has contracted.
FA,-
.
'. $he principal is liable for e"penses incurred by the agent.
$/0
.
*. $he agent may retain in pledge ob4ect of the agency until
the principal eCects reimbursement and pays the agent.
FA,-
.
+. $he agent is liable if there is a con@ict of interest
between his interests and those of the principal.
FA,-
.
1D. If the agent is empowered to lend money, he may be the
borrower.
$/0
.
11. 8ersons not partner may be liable as a partner.
FA,-
.
12. /eceipt of pro)ts is prima facie eidence of partnership.
$/0
.
13. 8artnership may be constituted in any form.
FA,-
.
1!. 8ersons prohibited from giing donation or adantage
cannot enter into particular partnership.
FA,-
.
1#. 8artnership begins from the e"ecution of the contract.
$/0
.
1&. .ery partner I a debtor of the partnership
FA,-
.
1'. A partner is a co%owner of the partnership property.
$/0
.
1*. .ery partnership shall operate under a )rm name.
$/0
.
1+. Contributions of a limited partner may be cash or
property not serices.
$/0
.
2D. A person may be a general partner and a limited partner
at the same time.
FA,-
.
21. -ale of a piece of land thru agentJagency is oid.
$/0
.
22. -8A is necessary to waie any obligation gratuitously.
$/0
.
23. -8A to sell includes power to mortgage.
FA,-
.
2!. -8A to mortgage does not include power to sell.
FA,-
.
2#. Agency shall remain in full force een after the death of
the principal
FA,-
.
2&. All acts of the agent een after the death of the principal,
without his 7nowledge, is alid.
CRE0IT TRANSACTIONS
$/0
.
1. 1eposit is a real contract.
FA,-
.
2. 1eposit is not coered by the -tatute of Frauds.
FA,-
.
3. 1eposit by a capacitated person with another who is not,
the depositor shall hae action to recoer while thing is
in possession of the depositary.
FA,-
.
!. $he depositary is obliged to 7eep the thing safely and to
return it to the depositor.
FA,-
.
#. If deposit with a third person is allowed, the depositary
shall not be liable for the loss.
$/0
.
&. $he surety underta7es to pay if the principal does not
payK the guarantor only binds himself to pay if the
principal cannot pay. $he )rst is the insurer of the debt,
while the other is the insurer of the solency.
FA,-
.
'. A guaranty is essentially gratuitous.
$/0
.
*. Guaranty may be constituted to guarantee a oidable
contract.
$/0
.
+. Guaranty may be constituted to guarantee future
debts...
FA,-
.
1D. A guarantor cannot be compelled to pay the creditor
unless the latter has e"hausted all the properties of the
principal debtor, and=
FA,-
.
11. $he thing deposited may not be used without the
permission of te depositor.
$/0
.
12. $he depositary cannot demand that the depositor proe
his ownership of the thing deposited.
FA,-
.
13. $he thing deposited must be returned upon demand.
$/0
.
1!. 1eposit of eCects by traellers in hotels or inns is a
necessary deposit.
FA,-
.
1#. ,oan and deposit are essentially gratuitous.
FA,-
.
1&. Aailor in commodatum acquires use of the thing loaned
without compensation but not its fruits.
FA,-
.
1'. $he bailee is not liable for the loss of the thing if due to a
fortuitous eent.
FA,-
.
1*. A contract of deposit is a consensual contract.
FA,-
.
1+. An escalation clause is oid if there is no de%escalation
clause.