A contract is binding between the parties notwithstanding the absence of a law that governs it, as long as it is not contrary to morals, good customs, public policy, or public order.

Related MCQs

• A court is empowered to ignore an unreasonable contract for attorney’s compensation although it is not shown to be contrary to morality or public policy.
• ABS-CBN entered into a contract with WR under certain terms and conditions. Both parties violated their contract, to the extent that WR transferred to another station despite the contract.
• Magdalene and Shantung Company entered into a contract of agency before the consul general of the Philippines in Singapore. They stipulated that Magdalene shall be the administrator of the real properties of Shantung Company in the said country. By virtue of the said contract, Magdalene sold the 1 hectare land of Shantung Company located in Singapore to Mayhem Real Estate Corporation without any special power of attorney. The said contract of sale was executed before the vice consul of the Philippines in Singapore. Under the laws of Singapore, the sale of a real property by an agent without a special power of attorney is valid. Shantung Company filed a suit for the annulment of the contract of sale on the ground that Magdalene has no authority to sell the property. If you were the judge, which of the following courses of action should you take?
• A contract of lease was entered into between A & B with a provision that it is for a period of 5 years renewable for another 5 years. The contract expired on June 30, 2010 but up to now, the lessee is still in possession of the premises. What does the implicit renewal of the contract mean?
• A and B entered into a contract of sale over A’s property. The document that evidences the contract did not state how much was paid, but A delivered the property to B. What is the nature of the contract?
• Antonio sold a piece of land to Renato binding himself not to sell the same to another person. On the following day, Antonio sold the land to Carlos who immediately took possession in good faith. In the case at bar, the proper remedy of Renato is to:
• A and B entered into a contract for B to construct the house of A for P10M. XYZ are partners engaged in the construction of houses. As they are friends of A, they told him that they can construct his house for only P8M and told him to cancel the contract with B. He cancelled the contract with B. What is the right of B?
• X and Y executed a contract of lease, which provides as follows: “In the event that the lessee fails to pay on or before the due date of payment herein specified, the contract is deemed automatically terminated” and the lessee can be evicted without need of judicial order. Suppose that Y, the lessee fails to pay the rentals after giving a demand letter, may X, the lessor evict Y immediately?
• A and B are married. They have two (2) legitimate children. After A died, the heirs acquired properties from A’s estate. B got married to C, without liquidating their conjugal partnership. What property relationship governs them?
• Wendy, single, bought a parcel of land in Dagupan City from Amante for P600,000.00. A contract was executed between them which already vested upon Wendy full ownership of the property, although payable in monthly installments for a period of 4 years. One year after the execution of the contract, Wendy got married to Lorenzo. They executed a marriage settlement whereby they agreed that their properties shall be governed by the regime of conjugal partnership of gains. Thereafter, subsequent installments were paid from the conjugal partnership funds. Is the land conjugal or paraphernal?