Ramon Magsaysay Memorial Colleges, General Santos City LAW ON OBLIGATION & CONTRACTS

OBLICON REVIEW

1. IDENTIFICATION
1.1. A future and uncertain event, upon the happening of which, the effectivity or extinguishment of an
obligation (or rights) subject to it depends
1.2. A sharp sudden increase in money or credit or both without a corresponding increase in business
transactions.
1.3. Delivery of money or performance of an obligation in any other manner.
1.4. Obligation not susceptible of partial performance.
1.5. One whose consequences are subject in one way or another to the fulfillment of a condition.
1.6. Period with a suspensive effect.
1.7. Solidarity on the part of the debtors.
1.8. That which must necessarily come although it may not be known when.
1.9. That which the debtor may compel his creditor to accept as payment.
1.10. The gratuitous renunciation by the creditor of his right against the debtor resulting in the
extinguishment of the latters obligation in its entirely or in that part of the same to which the
renunciation refers.

2. TRUE OR FALSE
2.1. A creditor, to whom partial payment has been made, may exercise his right for the remainder, and
shall be preferred to the person subrogated in his place in virtue of the partial payment.
2.2. A threat to enforce ones claim through competent authority, although the claim is just or legal, is
intimidation and vitiates consent.
2.3. A void contract may be ratified.
2.4. Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless the
debtor proves the contrary.
2.5. As a general effect of novation, the old obligation is extinguished and replaced by the new one
stipulated.
2.6. As a general rule, legal subrogation is not presumed.
2.7. Before the court has declared the consignation has been properly made or the creditor has accepted
the consignation, the debtor may withdraw the sum or thing deposited in court as a matter of right.
2.8. Compensation cannot be set up against a creditor who has a claim for support by gratuitous title.
2.9. Consignation without tender of payment is sufficient if two or more persons claim the same right to
collect.
2.10. Contracts entered into during lucid interval are valid.
2.11. Contracts that are required to be in writing under the Statute of Frauds may be enforced if benefits
have been accepted under them.
2.12. Conventional subrogation requires the consent of the original parties and the third person.
2.13. Delegacion requires the consent of the old debtor, new debtor and creditor.
2.14. If a party ratifies a voidable contract, he can still subsequently ask for its annulment.
2.15. If Novation is void if the original obligation was void, except when annulment may be claimed only by
the debtor, or when ratification validates acts that are voidable.
2.16. If the old obligation is void, the novation will still be valid if the new obligation is valid.
2.17. In expromision if the substitution is without the knowledge of the old debtor, new debtor can demand
reimbursement only up to the extent that the latter has been benefited without subrogation of the
creditors rights.
2.18. In order that reformation of a contract may be availed of by a party, there should be a meeting of
minds of the parties to the contract.
2.19. Legal compensation takes place by operation of law even if the debts are payable at different places.
2.20. Ratification cleanses the contract from all its defects from the moment the ratification was made.
2.21. Rescission cannot take place when the object of the contract is legally in the possession of third
persons who acted in bad faith.
2.22. Rescission of a contract shall be only to the extent necessary to cover the damages caused.

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Ramon Magsaysay Memorial Colleges, General Santos City LAW ON OBLIGATION & CONTRACTS

2.23. The action for rescission must be commenced within three years.
2.24. The action or defense for the declaration of the inexistence or nullity of a contract does not prescribe.
2.25. The condonation of debt in money amounting to P5,000.00 to be valid requires that the condonation
and acceptance must be in public instrument.
2.26. The consent of the creditor is an indispensable requirement both in expromision and delegacion when
there is a substitution of debtor.
2.27. The contract is not considered voidable if both parties employed fraud to obtain consent.
2.28. The interpretation of obscure words or stipulations in a contract shall not favor a party who caused the
obscurity.
2.29. The parties may agree upon the compensation of debts that are not yet due.
2.30. The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not
themselves fraudulent.

3. ESSAY. (Enumerate and/or with meaning)

3.1. Define Contracts.
3.2. Define Obligation according to Article 1156.
3.3. Discuss the essential requisites of contract.
3.4. Discuss the four kinds of defective contracts.
3.5. Discuss the sources of obligation.
3.6. Discuss when the demand by the creditor shall not be necessary in order that delay may exist.
3.7. Enumerate and discuss briefly all vices of consent.
3.8. It was held that Y has the obligation to reimburse X, a neighbor, for the expenses X incurred in saving
Ys house from being burned although Y did not actually give his consent to the act of X in saving his
house. This said ruling is based on the principle of solutio indebiti.
3.9. Required: Identify if the stated principle is true. Either true or false, discuss the principle.
3.10. Under a building contract, X bound himself to construct a house for Y for P1,000,000.00. Required:
Identify and define the essential requisites of obligation.

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