Philippine Bar review · Question

Practice question: Mutuality

Multiple Choice Hard

Practice question

A contract submits performance to an independent third person's determination, which is communicated to both parties. Evidence establishes that the result is evidently inequitable. One party insists that prior agreement to the decision-maker eliminates all judicial review. Which answer follows Article 1310?
  1. Every communicated determination is obligatory despite evident inequity
  2. The evidently inequitable determination is not obligatory, and the court decides what is equitable under the circumstances
  3. The party with greater wealth may replace it alone
  4. The contract must automatically become a donation
  5. The third person can prevent all courts from acting merely by insisting

Legal references

  • Civil Code Articles 1306 and 1308–1310: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html

Answer this question in flashcards to review your response and continue practicing.