Contracts
Contracts
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
8. Three of the following contract is void .Which one is not?
a. Oral contract of partnership wherein more than 3,000 has been contributed by the partners
b. Agent giving oral authority to sell the land of the principal
c. Partnership contracts in private instrument wherein immovable have been contributed
d. Oral contract of limited partnership
9. Which of the following constitutes fraud?
a. Misrepresentation mad out not in bad faith
b. Misrepresentation by a third person and both parties mistaken
c. Usual exaggerations in trade or dealers /sales talk
d. Failure to disclose facts when there is a duty to reveal them as when the parties are bounded by
confidential relations
10. These are the principles in contracts. Which is not?
a. Freedom or autonomy of contracts
c. Perfection by mere consent
b. Relativity of contracts
d. Binding on third person
11. Which of the following constitutes offer?
a. Business advertisements of things for sale
b. Advertisements for bidders
c. An offer through an agent
d. Before the acceptance is conveyed, either of the parties dies, civilly interdicted, becomes
insane or insolvent
12. Statement no.1. There is acceptance of the offer only after it has come to the knowledge of the
offer.
Statement no.2. Lesion or inadequacy of cause shall as a true make a contract defective.
a. Both statements are true
c. Both statements are false
b. Second statement is true, first is false
d. First statement is true, second is false
13. Statement no.1. If the cause is not stated in the contract it is presumed that it does not exist and
therefore the
contract is void.
Statement no.2. In order that a contract may be voidable, there must be damage.
a. Both statements are false
c. First statement is false, second is true
b. Both statements are true
d. First statement is true, second is false
14. The action to annul avoidable contract is extinguished by:
a. Novation
c. Rescission
b. Ratification
d. Estoppel
15. Which of the following contract is unenforceable?
a. One of the contracting parties is incapable of giving consent.
b. Contract of lease of a car for two years orally entered into.
c. Oral contract of sale or land.
d. Mortgage contract in private instrument.
16. Which of the following contracts is not void ab initio?
a. Those whose object is outside the comer.
b. Those whose object did not exist at the time of transaction.
c. Those which contemplate an impossible service.
d. Those undertaken in fraud of creditors.
17. Contract which cannot be sued upon unless ratified, thus it as if hey no effect yet:
a. Voidable
c. Void
b. Rescissible
d. Unenforceable
18. Which of the following contracts is valid?
a. Oral contract of agency giving authority to an agent to sell the land of the principal.
b. Oral partnership agreement where immovable are contributed.
c. Oral contract of sale of an entered into by an agent who given oral authority by the principal
d. Oral agreement to answer all the expenses for the wedding reception if A marries B.
19. A sold to B genuine bottle of Fundador brandy. However, upon delivery the former substituted a
fake, B now wants
to annul the sale. Decide:
a. The contract is void ab initio therefore it can be annulled.
b. The contract can be annulled since it is voidable due to fraud.
c. The contract cannot be annulled because it is only incidental fraud.
d. There is dolo incidente therefore it can be annulled.
20. G was appointed as the guardian of M who owns a parcel of land value at Php 1M. M sold the land
only for Php. 7M to B.
The contract is defective because;
a. Unenforceable
c. Voidable
b. Rescissible
d. Void
21. S was intimidated by to sell to the latter his parcel of land at a very law price. C, the creditor of S
was thus damaged
since the former has no other means of collecting from S.
The remedy of S:
a. Rescission
c. Have it declared by the court as void
b. Annulment
d. Reformation of the contract
22. Which of the following contracts must be in writing to be enforceable?
a. Acts and contract for the creation transmission, modification, extinguishments of real rights.
b. The cession, repudiation, renunciation of heredity rights.
c. Contract of guaranty
d. Contract of partnership
23. S made an offer to B for sale of his car which was received by the latter on January2, 2001. On
January4, 2001 B sent a
letter of acceptance by mail. On January 3, 2001 S sent another letter to B withdrawing his offer. In
this case;
a. There was a perfected sale because of the acceptance of the offer by B before he had knowledge
of its withdrawal
by S.
b.There was perfected sale because S stopped from withdrawing his offer B had knowledge thereof
before acceptance.
c. No sale took place because before acceptance was conveyed, the offer had been withdrawn.
d. The offer was ineffective for lack of certainty as to the object.
24. Statements:
An offer made by the principal is accepted from the time acceptance is conveyed to him or his
agent.
The object of a contract may be future things including future inheritance.
a. Both statements are true.
b. Both are false.
25. Statements:
A contract which is the direct result of a void contract is voidable.
If the object of the contract did not exist at the time of the transaction it is void. Therefore this may
include sale future
things,
a. First is true, second is false.
c. Both are false.
b. First is false, second is true
d. Both are true
26. A sold in writing to B his sterio set for Php600.00. There is no delivery from A and no payment of
the price from B.
Contract is:
a. Voidable
c. Void
b. Unenforceable
d. Enforceable
27. If the words of the contract are clear and leave no doubt on the intention of the parties,
interpretation of contracts
may be proper.
In case of gratuitous contracts, doubts shall be resolve in favor of greatest reciprocity of interest.
a. The first statement is false: second is true
b. The first statement is true: second is false
c. Both are true
d. Both are false
28. S sold his parcel of land only for Php 1M although the value of the same is Php 2M. He thus suffer
damage or lesion in the
sale due to the inadequacy of the price. Therefore the contract is
a. Voidable
c. Valid, not defective
b. Unenforceable
d. Rescissible
29. Statements;
In case of doubt, a contract purporting to be sale shall be constructed as mortgage.
In annulment of contracts, there shall always be mutual restitution of both parties thereof.
a. First statement is false, second is true
c. Both are true
b. Both are false
d. First statement is true, second
is false
30. Statements;
Just like voidable and unenforceable contracts, rescissible contracts may be ratified.
In case of fraud or mistake, the action for annulment must be made within four years from the
commission of the vice of
consent.
a. Both statements are true
c. First is true: second is false
b. Both are false
d. First is false, second is true
31. D, fearing that his creditor C, would go after his only parcel of land to satisfy his claim for payment
of Ds debt, sold his
land to X who did not know of Ds intention. Decide;
a. C can ask for annulment of the sale as this is voidable contract.
b. C. may ask for damage against X since he was damage by the sale.
c. C can file an action for rescission of the sale.
d. C cannot ask for the rescission of the sale.
32. Mutual error as to the legal affect of an agree when the purpose of the parties is frustrated may
result in the
reformation of the instrument.
Mutual mistake of the parties and the instrument does not express the true agreement will make the
contract voidable.
a. Both statements are false
c. First is true, second is false.
b. Both are true.
d. First is false, second is true.
33. A without authority from B sold the latters car in the name of the latter. The contract is therefore:
a. Rescissible
c. Unenforceable
b. Voidable
d. Void
34. A threatened B with an administrative change for immorality if the latter does not marry her
because she is already
pregnant with their child. Fearing that she may do so, B married her.
The contract of marriage is therefore voidable because of threat. A simple mistake of account may
give rise to the
annulment of the contract because of mistake.
a. First statement is false, second is true
c. Both are true
b. Both are false
d. First is true, second is false
35. A appointed B to sell his land;
If authority of B is oral and the sale is in public instrument, the sale is void.
If the authority of B is in writing and the sale is oral, the contract is unenforceable.
36. In three of the following the contract is cleanse of its defect by ratification. Which is not so ratified?
a. Contract where the creditor was damage by the act of the debtor intended to defraud him.
b. Contract entered into by a person incapable of giving consent.
c. Sale of chattels orally entered into for a piece not less than five hundred pesos.
d. Lease of real property for more than one year orally entered into
37. A gave B One Million Pesos for the latter to kill C. Before B could accomplish his criminal intent to
kill C. A change
His mind and demanded the return of the money from B. Decide;
a. A cannot recover the payment he made to B because it was a void contract which does not allow
recovery by the
guilty party.
b. A cannot recover the money because the contract is unenforceable.
c. A can recover the money although the contract is void since the crime was not committed.
d. No recovery and both A and B will prosecuted for their crime.
38. Because A wants to sell his land to B but the latter does not want to buy the same, A forced B to
buy his land. The land
The contract;
a. Not binding upon B since his consent was vitiated.
b. It is unenforceable as against B but not against A.
c. May be ratified expressly or tacitly by A
d. It is valid, binding and enforceable.
39. D borrowed a sum of money from C with G as guarantor. The loan is in writing but the guaranty is
oral. D failed to pay C.
Who now is demanding payment from G? Can G be compelled to pay?
a. Yes, because he is the guarantor obliged to pay in case the debtor defaults.
b. No, because the guaranty is void having been orally made.
c. No, because the guaranty is unenforceable against G, it being oral.
d. Yes, because the guaranty is enforceable, writing not needed.
.
40. A and B agreed on February 3, 2000 that B will construct the house of A in January 2002. The
contract was orally entered
into. B received a down payment from A with the balance payable after completion of the house.
The contract is;
a. Voidable because it not in public instrument.
b. Enforceable even if not in writing, having been ratified.
c. Unenforceable because it is not in writing and yet performance there is after one year from
perfection.
d. Void because it is not in writing as required by law.
41. A sold to B a fake Rolex watch on January 3, 2001, discovered that the watch he bought A was an
imitation. The law
provides that he can annul the sale as a voidable contract within four years. Prescription starts
from;
a. January 3, 2001 when the sale was perfected
b. The time of delivery of the watch to B.
c. The time they first talked about the sale of the watch.
d. January13, 2001 when the fraud was discovered by B.
42. A and B agreed on a contract of pledge. However, they entered into a contract of mortgage in the
honest belief that the
mortgage and pledge are the same. The instrument may be reformed;
a. No, the document cannot be reformed since contract is void.
b. No, cannot be change. They are bound by the document which speaks for itself.
c. Yes, it can be reformed because it does not express the true agreement of the parties.
d. Not, it cannot be reformed because there was no meeting of minds between the parties and the
remedy is annulment
of contract.
43. A and B entered into a contract of mortgage. However, as written the document states it is a
contract of sale with right
of repurchase, the error due to the fault of the clerk/typist.
Hence:
a. The contract of sale must be annulled since it is voidable.
b. The instrument has to be enforced as is for it is the proof of the agreement between the parties.
c. because of the negligence of the parties in signing without first reading the instrument, they are
bound by the contents
of the same.
d. The instrument may be reformed because it does not express the true agreement of the parties.
44. S sold to B his parcel of land worth one million pesos for only half a million pesos. After the sale
and realizing his
damage, S is now seeking to set aside the sale. Decide;
a. The contract is voidable because of mistake of the seller.
b. It is rescissible because of the lesion or damage suffers by S.
c. S has the right an increase in the price to prevent unjust enrichment on the part of B.
d. The sale is valid, binding and enforceable because as a rule lesion or inadequacy o cause or
price in sale does not
invalidate a contract.
45. If the cause is not state in the contract, it is presumed that it does not exist.
Lesion or inadequacy of cause as a rule invalidates a contract.
a. First statement is false, second is true
b. First is true, second is false
c. Both are true
d. Both are false
46. 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 principal in contracts prohibits C from doing so?
a. Autonomy of contracts
d. Consensuality of contracts
b. Relativity of contracts
e. Obligatory force and compliance in good
faith
c. Mutuality of contracts
47. Three of the following contracts must be in writing to be valid. Which is the exception?
a. Contract of partnership where immovable are contributed.
b. Contract of agency to sell the land of the principal.
c. contract where the amount involved exceeds five hundred pesos.
d. Negotiable instrument.
48. A threatened to kill B if the latter would not marry the formers daughter who was pregnant with Bs
child. Intimidated,
B married As daughter against his will.
a. The contract is not voidable because the threat was made by a third person not by one of the
parties.
b. The contract is not voidable because the claim for marriage is just or legal and therefore consent
is not vitiated.
c. The contract is not voidable since B answer for his fault that As daughter become pregnant.
d. Voidable is the contract due to intimidation even if employed by a third person.
49. The following are characteristics of a contract. Which is the exception?
a. The action or defense for three declaration of the inexistence of a contract does not prescribe.
b. It cannot be ratified.
c. A contract which is the direct result of a void or illegal contract is voidable.
d. The defenses or illegality of a void contract is not available to the third person whose interests
are not directly affected.
50. The following are attributes of a voidable contract. Which is not?
a. It is binding, valid and enforceable before annulment.
b. Damage is material to be voidable contract.
c. It can be ratified and ratification has retroactive effect.
d. The capacitated cannot allege the incapacity of the other party
51. The following are attributes of a rescissible contract. Except;
a. It is valid until rescinded
b. Damage or lesion is absolutely material.
c. Third person whose interest is affect may ask for rescission.
d. It is principal remedy of the creditor to collect his credit.
52. Nominate contracts are those without special designations or names under the law.
In nominate contracts shall first be governed by the custom of the place.
a. Both statements are correct.
c. Both are incorrect.
b. First is correct, second is false.
d. First is incorrect, second is correct.
53. Statements;
Contracts take effect not only between the parties but also their heirs and assigns and the
heirs is liable beyond the value of the property he received from the decedent
In stipulation pour autri, the third person must communicate his acceptance of the stipulation
before its revocation.
54. Statements;
If the contract is unenforceable and a public document is necessary for the contracts
registration, the parties may
Compel each other to make the needed public document.
Unenforceable contracts unlike void contracts may be assailed by the third persons.
a. First statement is correct, second is incorrect. c. Both are incorrect.
b. First is incorrect, second is correct.
d. Both are correct.
55. Statements;
When the defect of the contract consists in the incapacity of one of the contracting parties, the
incapacitated is
Obliged to make restitutions unless he did not benefit by the thing or price received by him.
The action for annulment of contracts shall be extinguished when the thing which is the object
therefore is lost
Through fortuitous event or fraud or fault of the person who has right to institute the proceedings.
a. Both statements are incorrect
c. First is correct, second is incorrect.
b. Both are correct.
d. Second is correct, first is incorrect.
56. Ratification of a voidable or unenforceable contract must be made within the prescriptive period
provided for by the law.
Ratification cleanses avoidable or unenforceable contract from all its defects from the moment it
was constituted.
a. First statement is false, second is true.
b. Second is false, first is true.
c. Both are false.
d. Both are true.
5. While his father was still alive, A sold to B the property he (A) expected to receive from his father.
Is the contract defective?
a. It is completely valid contract because the seller is compulsory heir.
b. It is valid for there can be sale of future things and what A sold is future property.
c. It is voidable sale if he fails to receive the property he expected to receive from his father.
d. It is void for future inheritance cannot be sold.
6. A promise to give B a car as reward after B has killed C. Later, after the killing, the contract was
changed to a lease of
a big house for a certain period.
The contract of lease is;
a. Void
c. Voidable
b. Unenforceable
d. Rescissible
7. S orally sold to B a parcel of land for which the latter paid P1. B now wants to register the sale so
that he can have a
Transfer Certificate of Title in his name. Decide.
a. S cannot be compelled to execute the public document of sale because the sale is unenforceable.
b. S can be compelled to execute the public document of sale because the sale is enforceable.
c. The sale is void and therefore cannot be registered.
d. S cannot be compelled to execute the public document of sale because the sale is voidable.
8. S orally leases to R his parcel of land for a term of two years. The contract is;
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
9. A verbal agreement was made between A and B whereby y A and agreed to sell and agreed to buy
As
farm for 100,000.00. The price was unpaid. Possession was not given nor did the deed deliver both
being
refused.
The contract is:
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
10. A orally leased to B his car for two 2 years .No delivery of the car was made and no payment of the
rentals
was
given .A refuses to pay the rentals in advance as agreed upon.
a. A may rightfully refuse because of the contract is unenforceable
b. A cannot refuse because of the contract is forceable
c. B cannot compel A to do something against the latters will
d. The contract is reciprocal and therefore A cannot be compelled to pay because there was no
delivery of the car.
11. A borrowed money from C with as a guarantor. The contract of loan of P1M was not in writing while
the
guaranty
a. C is liable because the guaranty is enforceable although the loan is void it being oral
b. C is liable because of the accessory of contract the guaranty is void since the principal contract
of loan is void
c. C is liable because the guaranty is enforceable
d. C is liable because the contract of loan is in amount exceeding 500.00 which must be in writing
to be enforceable
12. A was having his housed repaired by B, who needed certain materials. So A told the stole owner,
give B the materials
I shall be responsible. I shall stand good. This was orally entered into.
a. The contract is unenforceable because A made an oral agreement to answer the default of
another that is B
b. The contract is unenforceable because A did not make a special promise to answer for the fault
of another person
c. The contract shall be enforceable if there is ratification by A
d. The contract shall be enforceable if it has been executed
13. A and B mutually promised to marry each other. The promise being verbal and without witnesses to
the
promise,
A did not marry B. B is now suing A for damages .Decide:
a. The contract is unenforceable; hence, A is not liable
b. The contract is unenforceable because mutual promise to marry is covered by the Statue of
Frauds
c. A is liable for damages even the contract is unenforceable
d. A may be liable for damages because mutual promise to marry is covered by the Statue of
Frauds
14. A and B neighbors orally agreed that from day, B would not erect a garage on his property till after
three years.
A week later B begun to erect a garage in violation of the agreement. A complains and B sets up
the
defense
of
contract being unenforceable. Decide
a. The contract is unenforceable because it is not performed within one year from the making
thereof, and it is oral
b. B can compelled to demolish the fence because he failed in his obligation not to do.
c. A can have a third person to undo what has been done by in violation of his obligation not to do
d. A has the right to complain and enforce the contract because it is enforceable
15. A and B orally agreed that A would sell and B would buys As radio for 200.00 three years from the
date of the
of agreement .At the end of the three years, A refused to hand over the radio although B was
willing
to
pay.
Is A bound to deliver the radio sold?
a. A is obliged to deliver what he sold since it was an enforceable sale
b. A is obliged to deliver B is ready to pay the price
c. A is not bound to deliver because the sale is unenforceable
d. A is not bound to deliver because the sale is void
16. A forced B to sell to him (A) his ring. B sued for annulment, but A had already lost the ring thru a
fortuitous event.
Is A liable for the loss?
a. A is liable for the loss even it was due to fortuitous event because of his bad faith
b. A is liable not because the loss was without his fault
c. A is liable to pay damages if he cannot replace the ring
d. A is not liable because no one shall be responsible for the loss of thing due to fortuitous event
17. A was forced by B to sign a contract. C, a creditor of A wants to annul the contract. Is C allowed by
law
to do so?
a. No because a third person cannot assail a void contract
b. Yes because the contract is voidable and C is damaged
c. No because a third person cannot assail avoidable contract.
d. Yes a third person can annul a rescissible contract
18. To defraud his creditors, A sold his real property to B. B now seeks to register the sale .X, creditor,
seeks
to
prevent the registration on the ground that it is rescissible contract. Despite Xs objection may the
land
be
registered
in Bs name?
a. No because the contract rescissible and therefore without effect
b. No because the sale is voidable and after annulment is not binding
c. Yes because the contract although voidable is valid and binding
d. Yes because the contract although rescissible is valid, binding and enforceable before rescission
19. A made a donation to B. Later A contracted several debts. What A has left as assets is much less
than
this
present liabilities. May donation to be rescinded?
a. No because the debts were incurred after the donation has been made
b. No if A gave guaranty or security for his debts
c. Yes because the donation is rescissible being fraud of creditors
d. Yes because A has become insolvent after donation
20. To defraud his creditor, A sold his property to B (who is in good faith). Later B sold the property to
C,
who
was
in
bad faith .M ay the creditor rescind the sale?
a. Yes because the third person C, is in bad faith
b. No because the third person B is in good faith
c. No because the contract is voidable and not rescissible
d. Yes because the contract is rescissible
21. To defraud his creditor, A sold his house to C.When however the creditor wanted to collect his
credit, somebody
lent A enough money. Is the sale rescissible?
24. When his father died but before the delivery of property to him, a son sold his share of the property
inherited.
Is
the
sale valid?
a. No because future inheritance cannot be sold
b. Yes because future inheritance can be the object of the contract
c. Yes because what has been sold is present inheritance
d. No because the son was not the owner due to lack of delivery to him
25. Element without which there cannot be a contract is:
a. Essential element
b. Natural element
c. Accidental element
26. Contracts take effect only the parties, their assigns and heirs except where the right and
obligations arising there from:
a. Is not transmissible by their nature
b. Is not transmissible by stipulation of the parties
c. transmissible by provision of law
d. All of the above
e. None of the above
27. Where damage is caused to either of the contracting parties or to a third person, the contract may
be:
a. Annulled
d. All of the above
b. Rescinded
e. None of the above
c. Ratified
28. When the contract lacks one of the essential elements the contract is:
a. Void
d. All of the above
b. Voidable
e. None of the above
c. Rescissible
29. The act or means by virtue of which efficacy is given to a contract, which suffers from a vice of
curable nullity
a. Ratification
d. All of the above
b. Resolution
e. None of the above
c. Rescission
33. An offer becomes ineffective if, before acceptance is conveyed, either parties becomes
a. Civilly interdicted
d. All of the above
b. Insane
e. None of the above
c.Insolvent
34. A contract where consent is given through mistake, violence or intimidation is:
a. Void
d. All of the above
b. Unenforceable
e. None of the above
c. Rescissible
35. The span of time wherein a person is in possession, temporarily of all his mental faculties
a. Lucid interval
d. Reglementary period
b. Option period
e. None of the above
c. Prescriptive period
36. Contracts entered into a state of drunkenness or during hypnotic spell is:
a. Voidable
d. Rescissible
b. Void
e. None of the above
c. Unenforceable
37. An offer made through an agent is accepted from the time acceptance is communicated to:
a. The principal
d. The household member of the principal
b. The agent
e. None of the above
c. Both the principal and the agent
38. The essential or impelling reason why the parties enter into a contract
a. Motive
d. All of the above
b. Cause
e.None of the above
c. Profit
39. The statement of a false cause in contracts shall render the contracts
a. Voidable
d. Rescissible
b. Void
e. None of the above
c. Unenforceable
40. If mistake fraud or accident has prevented a meeting of the minds of the parties, the proper
remedy is:
a. Annulment
d. Resolution
b. Reformation
e. None of the above
c. Rescission
d. Unenforceable
e. None of the above
42. A contract entered into in the name of another by one who has no authority or legal representation
is:
a. Void
d.Unenforceable
b. Rescissible
e. None of the above
c. Annullable
43. Business advertisements of the things for sale are:
a. Definite offer
d. Acceptance of the offer
b. Invitation to make an offer
e. None of the above
c. Counter offer
44. The following is an example a real contract
a. Contract of pledge
b. Contract of deposit
c. Contract of commodatum
d. All of the above
e. None of the above
45. A. In case of divisible contract, if the legal terms can be separated from the legal ones, that the
latter can be enforced
B. The defense of illegality of contracts is available to third persons whose interest are directly
affected
a. Both are true
b. Both are false
c. First is false
d. Second is false
46. A and B entered into an oral sale of the formers car for P1M which amount has been credited to his
bank account
although the car has not yet been delivered to the latter. Can B compel A to execute the deed of
sale of the car?
a. No because the sale is unenforceable
b. Yes because it is enforceable
c. Yes if A used the money paid to him
d. No because the sale is void
47. On January 20 2002 A and B agreed verbally to form a partnership on January 25 2004
a. The contract is void because future property cant be contributed to a universal partnership of
all present property
b. It is voidable if the parties marry each other before they form the partnership
c. Unenforceable because it is not in writing
d. Void because there is no public instrument of their agreement
48. A orally leased B his car for a term of 2 years .B has not taken possession of the car and A has not
received any rental. The
contract is:
a. Unenforceable
c. Rescsissible
b. Valid and binding
d. Voidable
49. Base on the preceding number, if the object were a house, the contact shall be;
a. Unenforceable
c. Rescissible
b. Valid and binding
d. Voidable
50. If the object were a parcel of land. The contract is;
a. unenforceable
b. Valid and binding
c. Rescissible
d. Voidable
51. A, being the eldest, sold the minor sisters parcel of the land in the name of the latter and by
virtue therefore the
later was able to finish high school. The contract is;
a. Void
c. Rescissible
b. Unenforceable
D. Voidable
52. Without authority from, B name the land of A to X who was in good faith. The contact is;
a. Void because B was not the owner at the time of the perfection of the sale.
b. Unenforceable, because B had no authority to sell As land.
c. Violable, because of the fraud committed by B against A.
d. Valid sale provided B owner upon delivery
53. Based on the preceding no. if the sale in As name is the contract is:
a. Void because B was not the owner at the time of the perfection of the sale.
b. Unenforceable, because B had no authority to sell As land.
c. Voidable, because of the fraud committed by B against A.
d. Valid sale provided B owner upon delivery
54. If the doubts are cast upon the principal object of the contract in such a way that it cannot be
known
what may have been the intention or will of the parties. The contract shall be:
a. Voidable due to lack of meeting minds
b. Void
c. Interpreted for there is doubt
d. Reformed to express the true intention of the parties
BUSINESS LAW
QUIZ ON CONTRACTS PART III
1. Which of the following can be considered as a feature of a void contract?
a. Subjects to ratification
b. It exists
c. Action or defense of nullity is subject to prescription
d. Novation cannot apply
2. L entered into a contract of mortgage with X. T, the clerk of L, typed the document .Due to Ts
negligence,
the
document made was that of sale instead of mortgage.
a. The remedy is annulment
b. Parties may go to court for interruption
c. Parties may enforce their right because it is enforceable
d. Reformation of the instrument is proper
3. These persons are bound by contracts, except
a. Third Persons
b. Assigns
c. Heirs
d.Parties
d. Void
a. Sale of property under litigation made by defendant without the consent of plaintiff or
authority
of
the
court
b. Those made to defraud creditors when the latter have no other means to recover their claims.
c. Those agreed upon representation of absentees, if the absentee suffers lesion by more than
of
the
value of the property subject of the contract
d. Contract of sale and the price is unusually inadequate resulting to lesion
14. S and M agreed in print that S, debtor for 3,000, will work as a servant of M without pay until she
could
find money with which pay to her debt. S failed to comply with her obligation .Under this premise,
which
of the statement is correct?
a. The agreement to work as a servant is void because it is immoral
b. To act as a servant without pay is unconstitutional because this is equivalent to involuntary
servitude
c. The agreement to work without pay since written is enforceable
d. The contract to work without pay as a servant until the debt is paid is void
15. Which of the following contracts is not required to appear in a public document?
a. Acts and contracts which have for their object the creation, transmission modification or
extinguishment of real right over immovable property
b. The session, repudiation or renunciation of hereditary rights
c. The power to administer property
d. Sale of immovable property
16. In order that stipulation in favor of a third person would be valid and binding upon the parties
thereto
to the following are requisites except
a. There must be a stipulation in favor a third person
b. The contracting parties must have clearly and deliberately conferred a favor upon that third
person
c. The third person communicated hi acceptance to the obligor before its revocation
d. That there must be an existing agency between either of the contracting parties and the third
person
17. Statement no.1 Dolo indecent entitles the person against whom it was employed the right to seek
the
annulment
of the contract
Statement no.2 A stipulations pour autri is an exception to the rule on relativity of contracts.
a. Both are true
c. No.1 is true; no.2 is false
b. Both are false
d. No.1 is false; no.2 is true
18. Example no.1 W, 16 years old sold his house valued at P1M for 500,000 or lesion by more than
one-fourth
of the value of the said house
Example no.2 S sold his house valued at P1M for only 5000,000 because of his poor judgment on
the value thereof
a. Both are voidable
c. No.2 is unenforceable
b. No.1 is rescissible; while No.2 is voidable
d. Both contracts are binding
19. S owns an oil painting. Being in need of money, S sold the painting to B for 1,000.After the sale it
was
discovered that the painting was valuable and worth 5,000.
a. S may rescind the contract due to lesion or inadequacy of cause
b. S may annul the contract because of fraud
25. Statement no.1 If one party was mistaken and the other hand acted fraudulently or inequitably in
such
a
way the instrument does not state their true intention, the former may ask for the annulment of
the
instrument
Statement no.2 The statement of false cause in contracts shall render them void, if it should not
be proven
that they were founded upon another case cause which is true and lawful
a. Both are true
b. Both are false
c. No.1 is true; No.2 is false d.No.1 is false; No.2
is true
c. Both a and b
d. None of a and b
27. Which of the following is not a requisite for the validity of a contract?
a. Consent
b.Object
c. Cause
d. Delivery
28. D owes C 500. However, Cs right has already prescribed .Notwithstanding the knowledge of this
fact,
D
paid
the amount .Realizing this mistake D wants to recover the amount paid.
a. D ca recovers on the ground of mistake
b. D can recover because his obligation is not enforceable
c. D can recover otherwise C will be enriched at the expense of D
d. D cannot recover
29. Three of the following contracts are void .Which is the exception?
a. Those who cause, object or purpose is contrary to law, morals, good custom, public order of
public policy
b. Those which are absolutely simulated or fictitious
c. Those who cause or object did not exist at the time of the transaction
d. Those where both parties are incapable of giving consent to a contract
30. X a former government employee, suffered severe paranoia and was confined in the mental
hospital
in
2000.
After his release he was placed under the guardianship of his wife to enable him to get his
retirement
pay
.In
2004
he became a mining prospector and sold some mining claims. In 2006 he wants to annul the sale
claiming
that
he
was
not mentally capacitated at the time of sale. The sale question was
a. Rescissible
b. Void
c. Voidable
d. Valid
31. Which of the following is nit presumed to be legal subrogation?
a. When a creditor, pays another creditor who is preferred
b. When a third person, not interested in obligation pays with the approval of the debtor
C.When the third person interested in the obligation pays even without the approval of the debtor
d. None of them
32. Essential requisites of a contract:
a. Consent
b.Cause
c.Object
d.All of them
c. Voidable contract
d.
36.S makes an offer to B on January 1 2007 .B makes known his acceptance in a letter sent on January
2
and
received
by S on January 5.Meantime , on January 3, S became insane
a. The contract is voidable because one party is insane
b. There is already a meeting minds, the contract is perfected
c. The contract is not binding because there is no meeting of minds
d. The contract is void the offer being effective
37. Based on the same facts except S is sane but only a minor at the time the acceptance is
communicated to him?
a. There is no meeting of minds between parties, therefore void.
b. The contract is not binding because the party is anticipated
c. The contract is binding between parties
d. The contract is unenforceable
38. Which of the following contract is voidable?
a. Those whose object is outside the commerce of men
b. Those which are absolute fictitious
c. Those where one of the parties is incapacitated
d. Those which contemplate an impossible service
39. The stipulation of contract to the effect that the debtor should remain as a servant in the house
and
in
the
service
of
her
creditor so long as she had not paid her debt is void because it is:
a. Contrary to good custom
c. Contrary to law and morality
b. Contrary to public policy
d. Contrary to public order
40. After the death of his father, sold his inheritance through its amount has not yet been determined
to
B,
for
an
consideration of 50,000
a, The contract is valid only if the inheritance valued at least equal or more than 50,000
b. The contract is rescissible
c. The contract is void if nothing remains of the inheritance to be turned over to B
d. Contract is void future inheritance cannot be the object of sale
41. X alleged that Y promised to give him one hectare of land. This is in consideration of Xs
meritorious
services
Y .Y pleads in defense that since the promise was not in writing , it is unenforceable under the
Statute
of
Frauds.
Decide
a. The promise is unenforceable because it is not in writing
b. The Statute of Fraud is applied because of A has rendered services
c. The Statute of Fraud is incapable here, because the promise to give the land is not a sale of
real property
d. The Statute of Fraud is can apply to partially executed contract
42. Statement no.1 In voidable contracts, there is no need to ratify the same before they can be
considered valid. In
unenforceable contracts however ratification is mandatory before they can be considered
enforceable
Statement no.2 There is undue influence if insidious words or machinations were employed by
party on the
other just to obtain the latters consent without which the latter would not have entered into the
contract
a. Both are true
c. No.1 is true while No.2 is false
b. Both are false
d. No.1 is false while No.2 is true
43. Three of the following are void contracts. Which is the exception?
a. Contracts where the cause is immoral
b. Contracts to prevent a known supporter of a political rival from voting for his candidate for a
valuable
consideration
c. Contracts with valid consideration but with unlawful motives
d. Absolutely simulated contracts
44. Statute of Frauds is applicable to
a. executed contract
b. oral contract of loan
c. contract not to be performed within a year from the making thereof
d. mutual promise to marry
45. Which of the following is correct?
a. An action to enforce judicially a natural obligation prescribes in 4 years
b. An action for annulment of contract is imprescriptible
c. An action to declare a contract void is not subject to prescription
d. An action for rescission of contract prescribes in five (5) years counted from the execution of the
contract
46. B fraudulently includes S to sell to him (B) a masterpiece painting for 100,000.Subsequently , B
sold
it
to
X
for 120,000 a good faith purchaser S is entitled to
a. Annul the contract with B plus damages
b. Recover the painting from X but no damages
c. Recover damages from B
d. Annul the contract between B and X
47. Which of the following contracts is not rescissible?
a. Those which are entered into by guardians whenever the wards, whom they represent, suffer a
lesion
of
more
than of the value of object of the contract
b. Those executed in representation of an absentee, if the latter suffer a lesion more than of the
value
of
the
contract
c.Those where one of the parties is incapable of giving consent to a contract
d. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the
claims due them
48. When there is concurrence of offer and acceptance, there is:
a. Consummation
b. Conception
c. Consent
d. Consideration
49. Which of the following contracts is voidable?
a. Those were both parties are incapable of giving consent to a contract
b. Those undertaken in fraud of creditors when the latter cannot in any other manner
c. Those were the consent is vitiated by mistake, violence, intimidation, undue influence or fraud
d. Those whose object is outside the commerce of men