9 LAWS AND ETEICS

ETNNN,IT TXEWNNNING & APPLIED SCIENCES

(o-lI-IG+A.EIGD![Si
G a juridical necessity to give, to do or not to
do' lt comes from the
t fit$are"which means to bind'

-ligations under Civil

Code
ffi;;;;";t - legally demandable and the courts of justice may
their performance.

z Obligations - based on : moralitY' natural law and conscience,

re not legallY demandable.
of Obligations
party
,a t"'sa tie -the vinculum or the link that binds the
",
consist in giving, doing or not doing something

subject - person who can demand t\e performance of the

on or known as the creditor or oblige

the person from whom prestation is demandable or

fun'e subject -
as the debtor or obligor

-- -::stration:
A agreed to
5 =:tered into a contract with B whereby on Monday' The
re-:ver to B a washinq machine
tiF is the contract, the prestation is the
----:AirAi
;a:;;;- *u"ninq nachine' the active subject
-s 3, and"i-inu
the Passive subject is A'

res of Obligations
irrrr = imPosed bY the law itsel{

-- lustration: and wife are obliged

2.' provlsion of 7aw, a husband mutual resPect and
:: Live togethet, observe and suPPort'
-,d.etitY, and render mutuaf heJP
persons whereby one
contracts - the meeting of minds between two
give or to render
OinOs nimsett with respect to the other to
something
service.
 RAL ENGINEERING & APPJ.ry! ;w
w Qursto- ru-LADO - EDUI AN

by law' by which t:
,4 Quasi-contracts - the act of a person'bypermitted
which another bjnds himseli b
6oiig;i", t ilsert iowaros another, or
himlwithout any agreement between them'

- r'efers to a crime or a penal

t Acts or omissions punished by law
like murder.

If fustration: that A
iiipo"i"q A kiffs B' If the courttofinds
gii-lty, A wiTl' be sentenced either imprisonmenc
ai"rn-,'depending on the gravity of the offense'
* Quasi-delicts a legal wrong,. committed through fault or negligence'
-
[ut"on or property, independent of contract'

pay for the damaqe sustained by Jose'

Requisites of Quasi-delicts
r An act or omission;
o Accompanied by fault or negligence;
r Causing-*u.t
damage to another;
. ih"r" b-e no pr:e_existing contractual relation betwegr
Parties.

ltftffiIllT lflt0s 0t 0Btlc[Il0lls

* Pure and Conditional Obligations

Pure Oblipations - one which is not subject to conditions

nor
.
' mention Jspecific date for its fulfillment
 'CHAPTER 9 - Laws and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

.1ged hinseLf to defiver a refrigerator to

Obligations * is one which is subject to a condition

flds of Conditions
9*^lensive Condition - a condition which suspends the demandability
cf tre obligation until the fulfilment of the condition.

i ;-ff give yau car if you pass, the ECE

-----t *-+l ^".^
-_.-: ._tld cf utlb .

*aolutory Condition - produces the extinguishment of an obligation

rpon the happening of the event.

i--;straLi-on:
I t'-ll let you use my car until you finish your
,-:-i-.e in business adminisLra,tion.
With a Period - those whose consequences are subjecied in
tay or the other to the expiration of said term

:=::atian:
::::owed money from B in. the amount of P50.00
w:s':g ta pay the amaunt "as soon as possible". If
:e: ant they cannot aqree on the specific date of
=::-, the remedy of B is to qo to court and ask
::urt ta f.tx the date when the debt rs to be

flds of Period
o Ex die - a period with suspensive effect
e In diem - a period with a resolutory effect and the validity of
obligation is up to a certain date
t Other Kinds:
t Legal period :petiod established by law
. Voluntaty period - period agreed to by the parties
. Judicial period - period authorized by the court
 GENERAL ENGINEE.RING & APPLIED
BY QUISEO _ ALLADO. EDULAN

+ Altemative Obligations - is one wherein various things are due, bd

payment of one of them is sufficient, determined by the choice whidn
a general rule belongs to the obligor.

ILLustration:
Marc obliged hinseJf to defivet to Edwin either
piano or a refriqerator. The defivery of the piar:s
the refriqerator is sufficient compliance uitlt
obllgation. Marc could not compel Edwin to ac
onTy a part of the plano or a Patt of
refrigerator because in alternative obliga='
compTete performance of one of the prestatio.s
necessary.

* Joint and Solidary Obtigations

Joint Obligations - is one which each of the debtors is answerable

a proportionate part of the debt and each one of the creditors is
to a proportionate part of the credit.

Illustration:
\luan and Pedro are jointly indebted ta Jose
amount 'of P100.00. As such/ ,Juan js liabLe to
for the amount of P50.00 only, whife Pedro is
liable to Jose for the same amount of P50.00. ;
the creditor, is entitfed to demand from Juar
Pedro P50.00 each.

- is one which each of the debtors is liable

Solidarv Oblisations fr
whole obligaiion and each of the creditors may demand
the entire obligation.

Il-lustration:
Juan and Pedro are the soLida'ry debtars of JaSe
the amouet of P100.00. Hence either of then na7
conpeJled by Jose to pay the whofe amount of PTAS-
So Jose can demand from,luan the amaunt of P1C!-
Jose can aLso demand from Pedro the amoun=
P100.00. Howevert it Juan pays P700.00, thel:
obligation is extinquished and the . paying
(Juan) is entitfed to be reimbursed by his
(Pedro) for his part of the debt, which is P50.00-
 CHAPTER 9 - Laws and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

dSolidarity
-ftile Solidorltl - when the solidarity exists among the creditors
trJy.
,frlcsne Solidarity - when the solidarity takes place ,among the
cbtors onlY.
ked Solidariql - when the solidarity exists both among the creditors
ri the debtors at the same time.

and lndivisible Obligations

Obtigation - is one which is capable of partial performance.

---:Lfvrr.

:;'iged hinseff to defiver to Pedro six sacks of

=s foflows: Three sacks of ri.ce to be defivered
--:.:: on May 1st, and Pedro to pay Juan the amount
a-aJ.00 . Another three sacks of rice to be
:;=:ed by Juan on June 1st, and Pedro to pay Juan
s=-:e amount of P750.00. The obJigation of Juan to
: defiver rice is divis'ib7e becagse the
::=s =o intended partiaT Performance.
Obligation - is one which is not capable of partial performance.

-
--aLLvtt.
--= preceding exampJe, if Juan and Pedro agreed
e: z-: the six sacks of rice shoufd be deLiver on
1s=, then notwithstanding that the object of the
:;=='on is physically divisible. NevertheTess, it
:'=-vislbl-e because the' parties intended complete
i::=ance at one given tine' Juan, therefore, must
::;=: aLf the six sacks of rice on May.7st. he
:: Cefiver two or three or even five, because
:.se the deJivery still constitutes partial

Clesses of Divisions
- depends on quality rather than quantity
S*tlirative
hnitative - depends on quantity rather than quality
I;&s/ - also known as moral, intellectual or mental division
 GENERAL ENGINEERING & APPLIED SCIEACE
BY QUISEO _ ALLADO . EDLiL{\
+ Obligations With a penal Glause

Definition of Penal Clause - an accessory undertaking to assume

liability in case of a breach.

I f fustratlon:
A stipulatlon i-n the contract for the sal=::
residential fot, that the vendee waufd c.:;-
within two years .fram the date of the safe 5A: -:
residence on the lot, and, in the event of fa:-:::
do so, the vendee would pay the vendor the :-
P10,000.00.

Two Classifications of Penal Clause

c Subsidiary - when only the penalty can be demanded
T flustration:

A binds hinself to defiver ta B a Honda .Ci

at the end of the current year. They e.
writing that shoufd A faif to deLiver the c
speclfied date, A shaLl PaY B as
P10,000.A0. A faifs to make the delivery.
demand the payment of P10,AAA.00 against
however'coufd not compe.I A to defiver the :=:
pay the penafty at the same time. The pay:=::
the penalty takes the place of the pr-:-:-
obligation.
) Joint - when both the principal contract and the penal clause
enforced

I I Ius trat tan:

A borrowed from B the amount of P10A.aA pa''-=:
actober 70, 2AA7. They agreed further thar ::
A faif to pay the amount on the said datel -:-:
pay B the amount of PIA.OA as penalty. On :-:
1A, 2007, A failed to pay B. In such case,::
go to the court and demand PaYment : -
principal anount of P700.00 and also the :=:
of P70.00. Hawevert if the penafty is inTq--:
nercifess and shocking to conscience, 1t s:-=--
be enforced. Instead it may be reduced :1
caurt.
 CHAPTER 9 - Laws and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

0t0BltGAil0lls

?ayment or Performance -
payment means not only the delivery of
but also the performance, in any other manner, of an obligation.

i.e loss of the thing due - when it perishes or goes out of commerce or
in such a way that its existence is unknown or it cannot be

iw condition or remission of the debt - it is an act of liberatity by which

oblige, who receives no price or equivalent thereof, renounces the
of the obligation, which is extinguished in its entirely or in
oart or aspect of the same to which the remission refers.

of Condonation or Remission
Conplete - when the enforcement of the obligation is waived or
renounced totally
Fortial- when the waiver or renunciation refers only to a part of the
obligation.
L'piess- when it is shown by words or ftclaration of the obligee'
lrptied - when it is inferred from the acts or conduct of the obligee.

*c confusion or merger of the rights of creditor and debtor - it is the

in one person of the qualities of obligee and obligor with respect
tie same obligation.
:s.47ensation - takes place when two persons, in their own right, are
and debtors of each other.

of Compensation
i-cgal compensation - takes place when compensation extinguishes
Jle two debts in their concurrent amounts even without the express
agreement of the parties.
l-oluntar! compensation - takes place when there is compensation by
agreement of the parties as in the case of mutual set off of accounts'
-::idicial compensation - takes place when the court permits the
ccunterclaim of the defendant as against the claim of the plaintiff.
P:rtial compensation - takes place when the two obligations are of
Clfferent amounts and a balance remains unextinguished after the
ccrnpensation.
 GENERAL ENGINEEB]NG & APPLIED SCIENCE
BY QUISEO _ ALLADO - EDUL{\
Total compensation' takes place when the obligations are cl
same amount and compensation extinguishes the
entirely.

Ilfustration:
A is indebted ta B in the amount of P70a.Ci-
the other hand, .B is afso indebted to A i:.
amount of P7A0.00, Both debts are
Compensation wiLf take place because both are,
their own right, creditors and debtors of
other.
* By novation - it is the change, substitution, or renewal of an
qbligatory relation, with the intention of extinguishing or m
&sentially the former, debitum pro debito (new debt for old debt).

Kinds of Novation
o Real novation - the change in the object or principal conditions d
obligation.

-L_L-LustraXaon:
A obliqed hinself to deLiver to B a
SubsequentTy, they entered in.to another co::=:
whereby instead of'TheA deJivering a car, A
deLiver a. truck. object of the obllgatic:
changed, so the novation was a reaf novation'
Perional novation - anolher person is sustained in place of the
or he is subrogated.to the rights of the creditor.

I ffustration:
A is indebted to B in the amount of P70a.00. ]
requests B ta accept C as debtor in his l3
p7ace. If B accepts C as his new debtor'
assurnes the obTiqation af A, then there 's
novation by the substitution of the person c:
debtor. If it is B who requests that he be ca-.
by C and A agrees, then there is aLso nova::
this time by the subrogiation of a third per-3:l
the pface of the creditor.

Mixed novation - the change in the person of the parties ad

objects or modification of principal condition.
 CHAPTER9-
GENENAL ENGINEERING & APPLIED SCIENCES

:'--'stration:
t :si-iged hinseJ-f to deliver to B a carabao.
:::3equentfy A proposed that C would take hjs
.-..e but instead of deLivering a carabao he ttoul"d
:el:zer a horse. If B and C agreed, then there was
" ::xed novation because the object of the
:c-:.;ation and the person of the obligor were
--^--^)
 ENGINEERING:&
BYQ{IISEO - .EDUIA\
(Cr(oIlfiI:-3A.(ETS
COITIRCTis the meeting of the minds between two persons whereby one
himself with respect to the other to give something or to render
comes frorn the Latin word "contractus"which signifies an agreement'

GIffnil PRoutsl0lls

Elements of Contracts
* Essential Elements

. consent of the parties

. object or subject matter
. cause or consideration

* Natural elements - are those the existence of which is presumed

unless there is an agreement to the contrary

* Accidental elements- consist of the unusual stipulation of the

as conditions, terms, etc-

Stages of a Contract:
* Preparation or Conceptior - includes all the initial stages up to
the parties agree upon the terms of the contract.

I f fustration:
Juan offers to se-ll his hotse to Pedro for P
Pedro asks Juan to bring his horse to his
enabTe hin to 6ee whether the horse is
carretefa purposes. Juan brings the horse tc
pTace and the fatter is al-fowed by Juan tc -':-:G
horse in puTling Pedro's cartetefa to ert-E
latter to see whether the horse has sufficie:=
is physicaTly fit, etc. After trying the harse'
bargains with Juan as to the price- tJp to th-3
the parties are doing things Teading to tbe
of the minds.
* Perfection or Birth - the time when the minds of the Partier
agreement upon the object'or subject matter as well as to ll:
consideration.
I f fustration :
 CHAPTER 9 - Laws and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

.;:e=s to receive P2,000.00 for his horse and

=::ees to take the horse for that anount. The
:= :ere is perfected because there is already a
: :i the minds.
or Termination

:e- 'vers the horse to Pedro and the same rs

=z:. Pedro gives the amo.unt P2,000 .00 as
:= price and the fatter receives it. In here,
::.=:act is consummated and terminated.
ofContracts
td Inplied Controcts - is one written in the intent of the parties is
Ey words, oral or written.

and Execu lory Contracts

contract - is one that has already bgen performed

:contract - is one that is not yet performed

and Real Contracts

contract - is one perfected by mere consent

:,itttract - is one perfected by the delivery of the thing which is the
of the contract

and Bilateral Contracts

contract - only one of the parties has an obligation

contract - both parties has an obligation

upon the right to contract

t6vwa' to law - The parties to a contract cannot agree to an object or
mlrsse which is against the law.

8." fcr and in consideration of. P7,000.00, entered

---a-LdLLAJI.

::.. a contract with B whereby the fatter agreed. to

o[:::=r c.
 GENERAL ENGINEERING & APPLIED
BY QUISEO _ ALLADO - EDULT\

* - No contact may be entered into which is against

Against morals
conduct and ethical PrecePt.

I Lustration:
J-

A entered into a contract with B whereby for

consideration of P7,0M.00 the fatter agrees :
with A without the benefit of marriage.
* Contrary to good customs - The contracting parties are prohibiFd
entering into contracts which conflict with good and established
or customs.

I lJ-ustration:
Pedro and Maria decided to get married on Oct"4
2007. Invitations were printed and distrib:=
relatives and friends and appareJ were p::
including matrimoniaL bed. Pedto, howevet we-kd&
of it and was never heard of again
.!. Contrary to public order - Signifies the public weal which are
and esiential in institutions.

Ilfustration:
An agreement that the creditor can
viofence to comPef the debtor to PaY
pubTic order.
.E Contrary to public policy - Refers not only to "public safety' ht
considerations which are moved by the common good.

Iflustration:
A entered into a contract with B wherby A
enter into any enterprise whatever
PhiTippines. ?his is against public policy as
contract in restraint of trade-
IS$InW ntQu6m$ ff c0ilrmGrs
.1. Consent - manifested by the meeting of the offer and the
upon the thing and the cause which are to constitute the conFd

* Object of Contracls - it may be things, rights and services

 9 - Laws and
GENERAL ENGINEERING, & APPLIED SCIENCES

- must be within the commerce of men, must not be

either physical or legally and must be determinate as to

- may be transmissible or not transmissible. Examples of

rilhts are the right to vote, rights flowing from a contract of
parental authority, etc.

Caatracts - the immediate, direct and proximate reason which

tre creation of an obligation thru the will of the contracting

:ji=:s to seff to Jose his onTy white horse for

f,i. --ose accepts the offer. Here, the consent of
:::es js manifested bY the concurrence of their
:-< .o the white horse and as to the price. The
- s the white horse and the cause is P500.00.

dContracts as to its Cause

Cotttract -the cause is the mutual undertaking or promise of
the contracting parties.

-=e -ls his

l car to Pedro f or P70 ,000.00 . This
=:= of safe creates a reciprocal obligation in
:a:tjes. Juan is obTiged to defiver the car to
and the fatter is obJiqed to pay Juan t}e
=e price of P10,000.00.
Contract -
the cause is the service or benefit for which the
is given.

-s accused for a crime in court. He retains the

::3s of Atty. Dela Cruz as his defense counsef
a,,000.00. The P5,000.00 to be given by Juah to
T- Defa Cruz is for the p.rofessional services of
;- Dela Cruz.
 GE NERAL EN GINEE4Iry93 APP LIE D
nv QUrSno-,A'LLADO - EDLIL$

+ Gratuitous Contract -the cause is the pure liberality of the giver'

IfLusttation:
Pedro donated a ParceT of fand to the nuniciPaJ-=;
Naic, Cavite, to be used as the nuniciPal ce=':
e consideration f'c:
without receiving anY valuabf of donat:::
same. Here, the cause of the conttact
the mere TiberaJitY of Pedro, the benefactor'
Requisites of a valid cause or consideration
o The cause must be in existence'
to law' morals'
o That the cause must be lawful and not contrary
customs, Public PolicY, and
r of a false cause
The cause must be tiue because the statement
the contract void.

nff0nillrl0ll 0I ltsiluINItTS
is o
,{eJofmultun rD
Reformarton a remedv equitv bv
in vrvi',
relvv, "'! -r ' m"1T-,?f-l*i:Yjl'i"':
- to the real intention d
rlde or construed so as to express or contormcommitted'
parties when some error or mistake has been

Requisites of Reformation
r There is a valid contract;
r The contract is in writing; of the parties
r The written contract faili to express the true intention
the true intention is
. fn" i"ifut" of the written contract to express
or accident'
triu"f mistake, fr4rd, inequitable conduct'

DTffGIIIT G||XIMGIS

Types of Defective Contracts

of a contract
*- Rescissible Contract - it t't"" all the essentialofrequisites
injury or d.amage to
if," itself is valid, but by reason
such as creditors, the contract may be rescinded'
"ontract
f"r"on",
Example of rescissible contracts
the
r Those which are entered into by guardians whenever cf
*not th"V represent su*er lesion 6y more than one-fourth
vatue ot tnl tnings which are the object thereof;
r if the latter
Those agreed upon in representation of absentees
the lesion stated in the preceding number;
 CHAPTER 9 - Laws and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

fuse undertaken in fraud of creditor$ when the latter cannot in any

ffer manner cotlect the claims due them;
lkse which refer to things under litigation if they have been entered
rco by the defendant without the knowledge and approval of the
flqarts or of competent judicial authority;
H other contracts specially declared by law to be subject to
escission.
--ann
- damage or injury suffered by the party seeking reseission
3r reason of the fact that the price is unjust or inadequate

tie Contracts - is one that possesses all the essential requisites of a

:ontract, namely, consent, object and cause or consideration. lt is a
contract until it is annulled.

that is voidable even though there may have been no damage to

crntracting parties
Those where one of the parties is incapable of giving consent to a
contract;
Those where the consent is vitiatdd by mistake, violence,
intimidation, undue influence or fraud.

ffi"*dorceable Contracts - a contract is said to be unenforceable when it

{ilnot be sued upon or enforced in court unless it is ratified.
f folowing contracts are unenforceable unless they are ratified
r Those entered into the name of another person by one who has
been given no authority or legal representation, or who has acted
beyond his powers;
r Those that do not comply with the statute of frauds as set forth in
this number. ln the following cases an agreement hereafter made
shall be unenforceable by action, unless the same, or some note or
memorandum thereof, be in writing, and subscribed by the party
charged, or by his agent; evidence, thereof, ofthe agreement cannot
be received without the writing, or a secondary evidence of its
contents.
r Those were both parties are incapable of giving consent to a
contract.

i'aid or Inexistent Contracts - one which is absolutely without legal force or

efrect. lt is not susceptible of ratification.
 GENENAL &APPLIED
BY QIIISEO - ALLADO. EDULAII
Contrscts that are inexistent and void from tbe beginning
. Those whose cause, object or purpose is contrary to law, mot*"
good customs, public order or public policy;
. Those which are absolutely simulated or fictitious;
o Those whose cause or object did not exist at the time of lll
transaction;
. Those whose object is outside the commerce of men;
r Those which contemplate an impossible service;
. Those where the intention of the parties relative to the princird
object of the contract cannot be ascertained;
r Those expressly prohibited or declared void by law.

Characteristics of void contracts

r Void or inexistent contracts produce no legal effects whatsoever'
r Void or inexistent contracts cannot be ratified.
e The right ti: set up the defense of inexistence or absolute nuflY
cannot be waived or renounced.
. The action or defense for the declaration of their inexistence cr
absolute nullity is imprescriptible.
o The inexistence or absolute nullity of a contract cannot be invoked
by a person whose interests are not directly affected.
 CHAPTER 9 - Laws. and Ethics
GENEN4L ENGINEERING & A-PPLIED SCIENCES

IDA,DIA,G+-!S
lhe sum of money which the law awards or imposes as percuniary
recompense, or satisfaciion for an injury done or a wrong
€rs a consequence either of a breach of a contractual obligation or
aci.

Denotes the illegal act

ages
or Compensatory Damages - damages that cover actual injury or
loss. lt is intended to put the injured party in the position he
ir prior to the injury. lt typically includes medical expenses, lost
and the repair or replacement of property.

Damages - includes physical suffering, mehtal anguish, fright,

anxiety, besmirched reputation, wouhded feelings, moral shock,
humiliation, and similar injury.

Damages - these are small and trfuial sums awarded for a

injury due to a violation of some legal right, and as a
of which some damages must be awarded to deterririne
littt.
or Moderate Damages * Temperate damages are such
as are reasonable compensation for the injury. They are more
rpminal damages but less than compensatory damages and may
remvered when the court fihds that some pecuniary loss has b"een
but its amount cannot, from the nature of the case, be proved
certainty.

Damages - the amount of which has been agreed upon by the

or fixed by the judgement of a competent court.

or Corrective Damages - damages which are given in

merely of the ordinary damages on account of wanton,
malicious, or oppressive character of the acts complained of.
 GENERAL ENGINEERING & APPLIED SCIENCE\
BY QUISEO _ ALLADO - EDULAN

r-.A.w pI-!-3(e--A.il[:F
uv nmcnnlT is a branch of the unwritten law which was originally founded
the customs of rperchants, mariners and business men generally.in d
dealings with one ah61her throughout the civilized bountries of the world.

The following are considered to be merchants

r Those who, having legal capacity to engage in commerce,
deriote themselves to it.
. Commercial or industrial companies which may be created
accordance with law.

Legal qualifications of merchants

. Those who have completed the age of 21;
r' Not being subject to the authority of the father or the mother, nr
marital authoritY and;
. Have the free disposition of their property.

Persons not qualified to'engage in commerce

r Persons sentenced to civil interdiction;
. Persons who have been declared bankrupts and;
r Persons who are prohibited from trading under special laws'

Persons not qualified to engage in business:

r officers and employees in the civil service, whether classified
unclassified, shali not engage in any private business, vocatior\
profession, or be connected with any commercial undertaking,.wt8
written permission froln the chief of the bureau or office in which they
serving, and of the President of lhe Republic or proper department h
r The heads of departments and chiefs of "bureaus or offices and
assistants shall not, during their continuance in office, engage fil
practice of any profession or intervene, directly or indirectly, in
management or control of any private enterprise which in any.Yvay..
be afflcted by the functions of their office; nor shall they, direcfly
indirectly, be financially interested in any contract with the
or any subdivision or instrumentality thereof.
 GENERAL ENGINEERING & APPLIED SCIENCES

of Merchants
of Commerce - for those merchants having their place ol
in Manila
of Deeds - for those in the provinces
and Exchange Commission - for corporations and all
with a capital of three thousand pesos (P3,000.00) or more
of Gusfoms - in the case of vessels, those more than 3 tons
 GENERAL ENGINEERING
BY QrnSEo - :EDUL-AIII

EEtlr - 9-r.
t- A juridical necessity to give, to do, or not to do.

A. Contracts
ir: dil;;ti*
C. Quasi-delicts
D. Condition

Obligation cornes from the latin word which means to bind.

A. Obligum
B. Obligate --
C. Obligare
D. Obligus

A legal wrong, committed through fault or negligence, on a person

property, indepelndent of contract.

A. Contracts
B. Obligation
C. Quasi-delicts
D. Condition

4. A nature of obligation under-civiJ^-cpde which is legally demandable

the courts of justice may compel theiiFdilbrmahei

A. CivilObligations
B. Natural Obligation '
C. Pure Obligation
D. Condition

A nature of obligation under civil code based on morality, naturd

and conscience, they are not legally demandable.

A. CivilObligations
B. NaturalOibligation
C. Pure Obligatlon
D. Condition '
 9 - Laws and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

Requisites of obligations which is the vinculum or the link that binds the
party
A. Juridical or legal tie
B. Prestation
C. Active subject
D. Passive subject

Requisites of obligation consist in giving, doing or not doing something

A Juridical or legal tie

B. Prestation
C. Active subject
D. Passive subject

Requisites of obligation that refers to a person who can demand the

performance of the obligation or known as the creditor or oblige

A Juridical or legal tie

B. Prestation
C. Active subject
D. Passive subject

Requisites of obligation that refers to a person from whom prestation is

demandable or known as the debtor or obligor

A Juridical or legal tie

B. Prestation
G. Active subject
D. Passive subject

fte of the following is not considered as a source of obligation.

A Law
B- Contracts
C- Quasi-delicts
D. Work
 GENERAL APPLIED
BY QUISEO : ALLADO - EDUI.AII

11. The following are requisites of Quasi-delicts except

A. An act or omission
B. Accompanied by fault or negligence
C. There must be no pre-existing contractual relation between the
parties.
D. Acts or omissions punished by law

12. An obligation which is not subject to conditions or burdens nor

mention a specific date for its fulfilment and as such it is imm
demandable.

A. Pure obligation
B. Conditional obligation
C. Reciprocal obligation
D. Alternative obligation

13. An uncertain event which wields an influence on a legal relation.

A. Pure obligation
E. Condition-
C. Reciprocal obligation
D. Alternative obligation

14. An obligation which is a subject to a condition

A. Pure obligation
fl'C. Conditional obligation
Reciprocal obligation
D. Alternative obligation
's:-':
15. A kind of condition which suspends the*$eme11d-?q!!j!fef:!!fe-
until the fulfilment of the condition.

A. Suspensive Condition
B. Alternative obligation
C. Reciprocal obligation
D. Resolutory Condition
 CHAPTER 9 - Laws and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

d condition that produces the extinguishment of an obligation

fqpening of the event.
Condition
obligation
obligation
Condition

whose consequences are subjected in one way or the

te f
expilallg1 9[ id telm.
obligation
with a period
obligation
obligation

money from "8" in the amount of P50.00 promising to pay

"as soon as possible". lf later on, they cannot agree on the
date of payment, the remedy of "B" is to go to court and ask the
b fx the date when the debt is to be paid. This illustrates:

obligation
with a period
obligation
Fnative obligation
d period with suspensive effect.

€rdie
hdem
legal period
Itduntary period

tird of period with a resolutory effect and the validity of obligation is

b a certain date
Ex die
h diem
Legal period
Voluntary period
 GEN E RAL E NG INEERING & APPLI E D
BY QUISEO _ ALLADO - EDT'I-f,Ti

21. A period established by law.

A. Ex die
B. ln diem
C. Legal period
D. Voluntary period

22. A period agreed to by the Parties.

A. Judicial period
B. ln diem
C. Legal period
D. Voluntary period

23 A period authorized by the court.

A. Judicial period
B. ln diem
C. Legal period
D. Voluntary period

24. An obligation where two parties are mutually obliged to do or to

something.

A. Pure obligation
B. Condition
C: Reciprocal obligation
D. Alternative obligation

Marc obliged himself'to deliver to Edwin either a piano or a

The delivery of the piano or the refrigerator is sufficient
the obligation. Marc could not compel Edwin to accept only a pat
piano or a part of the refrigerator because this illustrates:

A. Pure obligation
B. Condition
Q. Reciprocal obligation
D. Alternative obligation

26. An obligation wherein various things are due, but the payment d
them is sufficient, determined by the choice which as a
belongs to the obligor.
 CHAPTER9-Lawsand
GENERAL ENGINEERING & APPLIED SCIENCES

Frre obligation
Gondition
kciprocal obligation
*rnative obligation

h which each of the debtors is answerable only for a proportionate

d the debt, and each one of the creditors is entitled to a
te part of the credit
.tnt obligation
Srtdary obligation
tlvbible obligation
Ldvisible obligation

i.r which each of the debtors is liable for the whole obligation and
dthe creditors may demand compliance of the entire obhgation.
Iirt obligation
Scldary obligation
[hbible obligation "
Hvisible obligation
of solidarity when it exists among the creditors only

Eive Solidarity
ksive Solidarity
Eed Solidarity
Sd Solidarity
lhe solidarity takes place among the debtors only, it is called

lclive Solidarity
hive Solidarity
5ted Solidarity
Sdo Solidarity
 GENEML & APPLIED
BY QUISEO _ ALLADO . EDTJLL{

31. When the solidarity exists both among the creditors and the
the same time, this is called

A. Active Solidarity
B. Passive Solidarity
C. Mixed Solidarity
D. Solo Solidarity

32. An obligation which is capable of partial performance.

A. Joint obligation
B. Solidary obligation
C. Divisible obligation
D. lndivisible obligation

33. Juan obliged himself to deliver to Pedro six sacks of rice as

Three sacks of rice to be delivered by Juan on May 1st, and I

pay Juan the amount of P150.00. Another three sacks of rice I

delivered by Juan on June 1st, and Pedro to pay Juan the same
of P150.00. This illustrates:

A. Joint obligation
B. Solidary obligation
C. Divisible obligation
D. lndivisible obligation

34. A type division that depends on quality rather than quantity

A. Qualitative
B. Quantitative
C. ldeal
D. Moral

35. A type of division that depends on quantity rather than quality

A. Qualitative
B. Quantitative
C. ldeal
D. Mental
 CHAPTER 9 - Laws and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

F of division also known as moral, intellectual or mental division

Clualitative
{luantitative
Eeal
D" Al of the above

b an accessory undertaking to assume greater liability in case of

L-anil
I, Penal clause
G Stipulation
ll Preceding
.lt'trinds himself to deliver to "B" a Honda Civic car at the end of the
qrent year. They agree in writing that should "A" fail to deliver the car
ln a specified date, "A" shall pay "B" as penalty P10,000.00. "A" fails to
de
.1l'-
the delivery. "B" could demand the payment of P10,000.00 against
'8", however could not compel "A" to deliver the car and pay the
g:r6*ty at the same time. This is _ type of penal clause:

A Joint
f Subsidiary
G Solo
D- Partial

t dassification of penal clause when both the principal contract and the
pral clause can be enforced.

A. Joint
R Subsidiary
G- Solo
D- Partial

ln obligation can be extinguished by the following except

A By Payment or Performance
B- By the condition or remission of the debt
C. By altering the signature
D. By the loss of the thing due
 GENENAL ENGINEERING &
BY QTIISEO - ALLADO - f,DTJLAN

41. An obligation which is not capable of partial performance.

A. Joint obligation
B. Solidary obligation
C. Divisible obligation
D. lndivisible obligation

42. A kind of remission when the enforcement of the obligation is waived

renounced totally.

A. Partial
B. Complete
C. Express
D. lmplied

43. A remission when the waiver or renunciation refers only to a part d

obligation.
A. Partial
B. Complete
C. Express
D. {mplied
44. A remission when it is shown by words or declaration of the obligee-

A. Partial
B. Complete
C. Express
D. lmplied

45. A remission when it'is inferred from the acts or conduct of the obl(pr-

A. Partial
B. Complete
C. Express
D. lmplied

A type of compensation that takes place when

extinguishes the two debts in their concurrent amounts even
express agreement of the parties. Judicial compensation
 CHAPTER 9-Laws and
GENERAL ENGINEERING & APPLIED SCIENCES

compensation
compensation
compensation
compensation

of compensation that takes place when there is compensation by

of the parties as in the case of mutual setoff of accounts.

Legal compensation
Hmtary compensation
l$dd compensation
Hid compensation
;pe of compensation that takes place when the court permits the
of the defendant as against the claim of the plaintiff.

l€gal compensation
Tdal compensation
Irdicial compensation
Partial compensation

tpe of compensation that takes place when the two obligations are of
amounts and a balance remains unextinguished after the

l" l-egal compensation

f Total compensation
C" $dicial compensation
G- Partial compensation

A tlpe of compensation that takes place when the obligations are of the
amount and compensation extinguishes the obligations entirely.

t Legal compensation
E- Total compensation
G Judicial compensation
D- Partial compensation
 &
sv QUrsno-A'LLA.Do -
of the obligation is change'
51. A. novation where the principal conditions
A. True novation
B. Real novation
C. Personal novation
D. Substitute novation

to "8" a 91t:..Subt"q'ently' they"A"

e
52. "A" obliged himself to deliver
into another i"tt""J of "A" delivering a car'
"onuu"t'""'tJt"iv
deliver a truck. This illustrates:

A. True novation
B. Real novation
C. Personal novation
D. Substitute novation
pers-ofi is sustained in place of
the
another
"" A'rtfnovation where
53.
it *ui"gated to the rights of the creditor'

A. True novation
B. Real novation
C. Personal novation
D. Substitute novation
in.the person of thO parties
novation where there is a change
"-' Ai'oll""G'"i
54.
moo itication of pri ncipal condition'

A. Mixed novation
B. Real novation
C. Personal novation
' D. Substitute novation

55.ltisthemeetingofmindsbetweentwopersonswherebyore
give something or to render
himself witr respeci i"'t'riJ "ff'lii1"
service.

A. Contracts
B. Obligation
C. Quasi-delicts
D. Condition
 and Ethics
GENERAL ENGINEENING & APPLIED SCIENCES

l contract comes from the Latin word _ which signifies an

Treement.
A- Kontrus
L contractus
C Tractum
D. contractumus

The following are considered to be the essential elements of contracts

Eg1.i:

A consent of the parties

& object or subject matter
C. cause or consideration
D. efiects to the subject

ftrelement of contracts which refers to those the existence of which is

gesumed by law unless there is an agreement to the contrary
A Essential element
8- Natural elements
C. Accidental elements
D. Unnatural elements

Refers to an element of contracts that consist of the unusual stipulation

cf the parties such as conditions, terms, etc.

A Essential element
B. Natural elements
C. Accidental elements
D- Unnatural elements

A stage of a contract that includes all the initial stages up to the time the
gties agree upon the terms of the contract.
A Preparation or Conception
B. Perfection or Birth
C. Consummation or Termination
D. Deliberation
 GENERAL ENGINEERING & APPLIED SCIENCES
BY QUISEO _ ALLADO - EDULAN

61. A stage of a contract that refers to the time when the minds of the pat
meetln agreement upon the object or subject matter as well as to
price or consideration.

A. Preparation or ConcePtion
B. Perfection or Birth
C. Consummation or Termination
D. Deliberation

62. Juan agrees to receive P2,000'00 for his horse and Pedro agrees to
the horie for that amount. This refers to what stage of the contract

A. Preparation or ConcePtion
B. Perfection or Birth
C. Consummation or Termination
D. Deliberation

63. Juan delivers the horse to Pedro and the same is accepted' Pedro
the amount P2,000.00 as purchase price and the latter receives it'
This is an example of what stage of the contract
A. Preparation or ConcePtion
B. Perfection or Birth
C. Consummation or Termination
D. Deliberation

64. A contract wherein the intent of the parties is shown by words,

written.

A. Express contract
B. lmplied cohtracts
C. Executed contracts
D. Executory contracts

65. A contract wherein the intent of the parties is shown by conduct'

A. Express contract
B. lmplied contracts
C. Executed contracts
D. Executory contracts
 CHAPTER 9 - Lows and Ethics
GENERAL ENGINEERING & APPLIED SCIENCES

that has already been performed.

contract
hfed contracts
fucrted contracts
contracts

that has not yet performed.

contract
contracts
Erecuted contracts
fucutory contracts
that is perfected by mere consent, such as a contract of sale.

C.rnsensual contract
flaleral contract
ftal contract
tffateral contract
_t
that is perfected by delivery of the thing which is the object of
cootract.
Consensual contract
Elateral contract
Rml contract
unilateral contract

srtract where only one of the parties has an obligation such as in

or gratuitous deposit.

Consensual contract
Bilateral contract
Real contract
lL unilateral contract

contract that creates reciprocal obligations.

,l- Consensual contract

L Blateral contract
G- Real contract
IL Unilateral contract
 GENEML ENGINEERING & APPLIED
BY QUISEO - ALLADO - EDULA}I
72.'tr, for and in consideration of P1,000.00, entered into a contrad
'8" whereby the latter agreed to murder "C". This limitation upon the
to contract that refers to

A. Contrary to law
B. Against moral
C. Contrary to good customs
D. Contrary to public order

73. 'A" entered into a contract with "B" whereby for and in consideratir
P100,000.00 the latter agrees to live with "A" without the benfl
marriage. This limitation upon the right to contract that refers to

A. Contrary to law
B. Against moral
C. Contrary to good customs
D. Contrary to public order

74. Pedro and Maria decided to get married on October 10,2OO7 ' I
were printed and distributed to relatives and friends and appare{
purchased including matrimonial bed. Pedro, however walked od
and was never heard of again. This limitation upon the right to
that refers to

A. Contrary to law
B. Against moral
C. Contrary to good customs
D. Contrary to public order

75. "A" entered into a bontract with "B" wherby "A" will not enter ir5
enterprise whatever in the Philippines. This limitation upon the
contract that refers to

A. Contrary to law
B. Against moral
C. Contrary to good customs
D. Contrary to public order
 CHAPTER9_
GENERAL ENGINEERING & APPLIED SCIENCES

*wing are requisites of contracts except

of contract
!-,brcc af ssp1ys61
of contract

of contracts as to its "cause" where the cause is the pure

of the giver.

ffiuitous Contract
Rernunetory Contract
Onerous Contract
ltberation Contract

Gsification of contracts as to its "cause" where the cause is the

or benefit for which the remuneration is given.

Gratuitous Contract
Remunetory Contract
Onerous Contract
& Uberation Contract

I dassification of contracts as to its "cause" where the cause is the

nrtualundertakingorpromiseofeitherofthecontractingparties.
A Gratuitous Contract
8- Remunetory Contract
G. Onerous Contract
D. Liberation Contract

Remedy in equity by means of which a written instrument is made or

onstrued so as to express or conform to the real intention of the parties
tien some error or mistake has been committed.

A Reformation
B. Novation
C. Defect
D. Erroneous
 GENERAL ENGINEERING & APPLIED SCIENCES
BY QUISEO-ALLADO - EDUL{{
81 . Which of the following cannot be considered as a requisite of

A. There is a valid contract;

B. The contract is in writing;
C. The oral contract expresses the true intention of the parties
D. The failure of the written contract to express the true intention b
due to mutual mistake, fraud, inequitable conduct, or accident.

82. A defective contract where it has all the essential requisites of a

and the contract itself is valid, but by reason of injury or damage b
persons, such as creditors, the contract may be rescinded.

A. Rescissible Contract
B. Voidable Contracts
C. Unenforceable Contracts
D. Void or lnexistent Contracts

83. A damage or injury suffered by the party seeking rescission by

the fact that the price is unjust or inadequate.

A. damage
B. effect
C. lesion
D. payment

84. A contract which possesses all the essential requisites of a

contract, namely, consent, object and cause or consideration. lt s a
contract until it is annulled.

A. Void or lnexistent contract

B. Unenforceable contracts
C. Voidable contracts
D. Negotiorum Gestio

85. A contract which is absolutely without legal force or effect.

A. Void or lnexistent contract

B. Unenforceable contracts
C. Voidable contracts
D. Negotiorum Gestio
 CHAPTER 9 _
GENERAL ENGINEERING & APPLIED SCIENCES

a contract cannot be sued upon or enforced in cou( unless it is

b said to be
.lHor lnexistent contract
contracts
Hable contracts
Gestio

fie voluntary administration of the abandoned business or property

to another without the consent of the latter.
H or lnexistent contract
coniracts
contracts
Gestio

$e sum of money which the law awards or imposes as percuniary

ion, recompense, or satisfaction for an injury done or a wrong
as a consequence either of a breach of a contractual
or a tortious act.

Fayment
fFrv
lbmages
C.ompensation

that cover actual injury or economic loss. lt typically includes

expenses, lost wages and the repair or replacement of property.
f, Actual or Compensatory Damages
I tlominal Damages
G Moral Damages
D- Temperate or Moderate Damages

Fnages that includes physical suffering, mental anguish, fright, serious

ruieg, besmirched reputation, wounded feelings, moral shock, social
lrniliation, and similar injury.

A Actual or Compensatory Damages

B. Nominal Damages
C. Moral Damages
D. Tepperate or Moderate Damages
 ENGINEERING & APPLIED
BY QUISEO - ALLADO - EDULAT
91. Damages which are small and trivial sums awarded for a technicd
due to a violation of sorne legal right, and as a consequence of
some damages must be awarded to determine the right.

A. Actual or Compensatory Damages

B. Nominal Damages
C. Moral Damages
D. Temperate or Moderate Damages

92. Damages that are reasonable compensation for the injury.

A. Actual or ComPensatory Damages

B. tfominal Damages
C. Moral Darnages
D. Ternperate or Moderate Damages

93. "Damages" where the amount of which has been agreed upon
parties or fixed by the judgement of a competent court.

A. Liquidated Damages
B. Exemplary Damages
C. Corrective Damages
D. Compensatory Damages

94. Damages which are given in enhancement merely of the

damages on account of wanton, reckless, malicious, or
character of the acts complained of^
A. Actual or Compensatory Damage$
B. Nominal Darpages
C. Moral Damages
D. Exemplary or Corrective Damages

95. Branch of the unwritten law which was originally founded on the
of merchants, mariners and business men generally in their
one another throughout the civilized countries of the world'
A. Law Merchant
B. Law of businessmen
C. Law of mariners
D. Law of people