D borrowed a sum of money from C with a certain rate of interest. C now wants to increase the rate of interest without the consent of D. What principles in contracts prohibit C from doing so? Explain.
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D borrowed a sum of money from C with a certain rate of interest. C now wants to increase the rate of interest without the consent of D. What principles in contracts prohibit C from doing so? Explain.
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- S1: Pactum commissorium is a stipulation whereby the thing used as security shall automatically become the property of the creditor in the event of non-payment of the principal obligation in due time. S2: Pactum commissorium may be a valid stipulation by agreement of parties. a. Only S1 is true. b. Only S2 is true. c. Both are true. d. Both are false.46. S1. Contracts are binding and effective only between the parties, their heirs and assigns. S2. Thus, an heir of a debtor is liable to the creditor for the full amount of the obligation. A. True, True B. True, False C. False, True D. False, FalseWhich Statements are TRUE regarding laws on obligations and contracts? 1. Freedom to contract means that the parties themselves determine the terms and conditions of their contract. 2. The only limitation of this freedom is that the terms and conditions should not be contrary to law. 3. Contracts are binding and effective only between the parties, their heirs and assigns. 4. Thus, an heir of a debtor is liable to the creditor for the full amount of the obligation. 5. A contract may contain some stipulations in favor of a third. 6. Such stipulation is called “stipulation pour artruy”. 7. A contract must bind both contracting parties. 8. A third person who induced a party to violate the contract shall be liable for damages to the other contracting party. 9. A mere expression of an opinion does not signify fraud. 10. Misrepresentation by a third person does not vitiate consent. 11. An acceptance of the offer may be express or implied. 12. A qualified acceptance is not really an…
- Is there any exception to the rule that the particular motives of the parties in entering into a contract are different from the cause of the contract? If there is, what is it? Give examples.Fill in the blanks to complete sentence. 8. ______bond ensures the repayment of the advance by the exporter in the event of the non-performance of his contractual obligations.As regards antichresis, which of the following is not correct? * a. The amount of the principal and of the interest shall be specified in writing, otherwise the contract of anti chresis shall be void b. The debtor, unless there is stipulation to the contrary is obliged to pay the taxes and charges upon the estate c. The debtor cannot reacquire the enjoyment of the immovable without first having totally paid what he owes the creditor d. The creditor is bound to bear the expenses necessary for the preservation and repair of the immovable
- Suppose the obligation of the debtor is to do something and he fails to do it or performs it in contravention of the agreement, what are the the remedies available to the creditor?the effect of the doctrine of privity of contract is that a. a person who is not a party to a contract cannot obtain benefits or rights under it b. a unilateral contract is unenforceable against parties who have privity c. parties to a contract are protectred by the law d. a person can obtain rights under a contract for which he or she is not a partyWhich of the following arises when the seller's right to consideration from a customer is conditional upon something other than the passage of time? A receivable A contract asset A contract liability None of these choices
- The relationship between a banker and its customers are not only fiduciary in nature but contractual as well. Therefore under any contractual terms, there exist terms and conditions, also known as an exclusion clause to protect the maker of the statement. With regards to case law, explain the rules of “incorporating” an exclusion clause in order for it to work.Give the SECOND exception to the general rule that: If the consideration of the contract consists partly in money and partly in another thing, the transaction is characterized by the manifest intention of the parties. * Answer in one complete sentence only.Which of the following is not a ground for the extinguishment of an obligation?