The Law on Obligations and Contracts (General Provision)

Subj: The Law on Obligations and Contracts (General Provision)

Kindly answer the following questions:

I. Define or give the meaning of the following:

1. Contract

2. Stipulation pour autrui

3. Real contract

$. Perfection of contract

II.

1. May a third person acquire rights under a contract to which he is a stranger or be bound thereby? Explain.

2. How are contracts perfected?

3. When will a person be bound by a contract entered into by another?

4. Give the effect of the perfection of a contract.

III.

1. A and B entered into a contract not specifically provided in the Civil Code. Is the contract valid and binding.

2. S (seller) and B (buyer) entered into a contract of sale. It was agreed that the price shall be determined by T, a third person. Can S or B refuse to be bound by T’s determination of the price if he does not agree with the amount thereof?

3. D owes C P20,000. Both are house painters. It was agreed that D instead of paying C, will paint the house of E to which E expressed his conformity to C whose service as painter was previously contracted by E. Has B the right to enforce the stipulation between C and D?

4. X made an office desk for Y. X told Y that the latter may pay whatever amount he would like to pay for it. When the desk was finished Y offered to pay P2,000 but X instead demanded P3,000, its fair value. Is X entitled to P3,000?