Philippine Bar review · Question

Practice question: Interpretation of Contracts

Multiple Choice Hard

Practice question

A proven commercial practice conflicts with an applicable mandatory legal prohibition. A party invokes 1376 to override that law by customary implication. Which is correct?
  1. Every custom automatically repeals statutes.
  2. Interpretive usage does not itself authorize an unlawful stipulation contrary to mandatory limits.
  3. Industry practice makes all prohibitions optional.
  4. Only the party’s profit determines validity.
  5. The contract must govern every stranger.

Legal references

  • Civil Code Articles748,1306,1319-1326,1356-1368,1372,1376 and1382-1389: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html

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