MULTIPLE CHOICE

MULTIPLE CHOICE
1. Which of the following is not a requisite for the validity of a contract?

a. Consent d. Delivery of the thing
b. Object e. None of the above
c. Cause or consideration
2. Before acceptance is conveyed, an offer becomes ineffective upon the:

a. Death d. Insolvency of either party
b. Civil interdiction e. All of the above
c. Insanity
3. X alleged that Y promised to give X one hectare of land. This is

consideration of Y’s meritorious service to Y. Y pleads in defense that since
the promise was not in writing, it is unenforceable under the Statue of
Frauds. Decide.
a. The promise is unenforceable because it was not in writing.
b. The Statue of Frauds is applicable because A has rendered services.
c. The Statue of Frauds is inapplicable, because the promise to give the land
is not a sale of real property.
d. The Statue of Frauds can apply to partially executed contracts.
4. The stipulation in a 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 customs.
b. Contrary to public policy.
c. Contrary to law and morality.
d. None of the above.
5. X, after the death of his father, sold his inheritance to B though its amount
has not yet been determined, for a consideration of P50,000.
a. The contract is valid only if the inheritance values at least equal or more
than P50,000.
b. The contract is rescissible.
c. The contract is valid even though nothing remains of the inheritance to be
turned over to B.
d. Contract is void, future inheritance cannot be the object of sale.
6. Which of the following contracts is void?

a. Those which object is outside the commerce of men.
b. Those which contemplate an impossible service.
c. Those where the intention of the parties relative to the principal object of
the contract cannot be ascertained.
d. Those expressly prohibited or declared void by law.
e. All of the above.
7. Statement No. 1: If the contract is entered into without authority, the

contract is validable.
Statement No. 2: Contracts take effect only between the parties, their
assigns and heirs, except in case where the rights and obligations arising
from the contract are not transmissible by their nature, or by stipulation or
by provision of law. The heir is not liable beyond the value of the property he
received from the decedent.
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
8. Reluctantly and against her good sense and judgment, Rosemarie entered
into a contract for the delivery of 5 tables to Corazon for a price of P15,000.
Contract is:
a. Void c. Unenforceable
b. Voidable d. Valid
9. G was appointed guardian of S, the latter being 16 years old. S sold his
parcel of land in writing to B valued at P100,000 for P75,000, suffering lesion
by 1/4 of the value. What is the status of the contract?
a. Rescissible c. Enforceable
b. Unenforceable d. Voidable
10. Which is the least defective contract?
a. Rescissible contract c. Unenforceable contract
b. Voidable contract d. Void contract
11. Which of the following contract is not rescissible?

a. Those which are entered into by guardians whenever the wards whom
they represent suffer a lesion of more than ¼ of the value of the object of the
contract.
b. Those executed in representation of an absentee, if the latter suffer a
lesion of more than 1/4 of the value of the object 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.
e. Those which refer to things under litigation if they have been entered into
by the defendant without the knowledge and approval of the litigants or of
competent judicial authority.
12. Statement No. 1: The legal life of a contract begins from its perfection
stage. While the death of the contract is the performance or fulfillment of the
obligation.
Statement No. 2: Misrepresentation made in good faith is not
fraudulent, but may constitute error and renders the contract voidable.
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
13. A contract where both parties are incapable of giving consent is:
a. Rescissible d. Void
b. Voidable e. None of the above
c. Unenforceable
14. Three of the following contracts are void. Which is the exception?
a. Those whose cause, object or purpose is contrary to law, morals, good
customs, public order or public policy
b. Those which are absolutely simulated or fictitious.
c. Those which 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.
15. S sold his car to B because of the intimidation of the latter.

a. S can ratify the contract.
b. S can ratify the sale with the conformity of B.
c. B has the right to ask for annulment.
d. B has only four years to ask for annulment.
16. Three of the following are rescissible, which is not?

a. Sale of property under litigation made by a defendant without the
knowledge of the plaintiff and authority of the court.
b. Those made to defraud creditors when the creditors has no other means
to recover his claim.
c. Those agreed upon in representation of absentees, if the absentee suffers
lesion by more than 1/4 of the value of the property subject of the contract.
17. S and M agreed in print that S, who is the debtor for P3,000 will work as a
servant of M without pay until she could find money with which to pay her
debt. Meantime, S absconded her obligation and failed to comply with her
promise. Under this premise, which of the following statements 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 obligation to pay is enforceable because this is in accordance with law.
d. All of the above.
18. 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 rights over immovable property, sales
of real property or of an interest.
b. The cession, repudiation or renunciation of hereditary rights.
c. The power to administer property.
d. Sale of immovable property.
e. None of the above.
19. In order that a stipulation in favor of a third person in a contract would be

valid and binding upon the parties thereto, three of the requisites are
mentioned in the following enumeration. Which among them is not a
requisite?
a. There must be a stipulation in favor of a third person.
b. The contracting parties must have clearly and deliberately conferred a
favor upon that third person.
c. The third person communicated his 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.
20. A contract whereby the offeree is given by the offeror a certain period of
time within which to buy or not to buy a certain thing for a certain price is
called:
a. Option contract c. Contract to sell
b. Contract of sale d. Barter
21. Which of the following statement is false?

a. Remission is essentially gratuitous.
b. Cession is a special mode of payment.
c. The liability of a guarantor is primary.
d. In alternative obligations, the debtor is required to perform only one
prestation.
22. Which of the following is presumed not to be legal subrogation?

a. When a creditor pays another creditor who is preferred
b. When a third person, not interested in the obligation, pays with the
approval of the debtor.
c. When a third person interested in the obligation, pays even without the
approval of the debtor.
d. None of them.
23. D is indebted to C for P10,000. For the purpose of defrauding C, D sold

his only parcel of land to X valued P10,000. X had no knowledge of the
intention of D.
a. The contract between D and X is binding.
b. The contract is voidable because D is in bad faith.
c. The right of C is to rescind the contract because the transaction is
fraudulent.
d. The contract between D and X rescissible.
24. In order to defraud C, his creditor, D by means of force compelled B to

buy his (D's) land. B has no knowledge of such fact.
a. As to C, the contract is rescissible
b. As to B, the contract is voidable
c. Both of (a) and (b)
d. None of (a) and (b)
25. The duty not to recover what has voluntarily been paid though payment
was no longer required.
a. Natural obligation c. Civil obligation
b. Moral obligation d. None of the above
26. X Company bought out a competitor, Y, with a stipulation that Y should

thereafter not engage in any business in the Philippines without the consent
of X Company.
a. The stipulation is not valid because the parties as a rule have no absolute
freedom to stipulate terms and conditions in a contract.
b. The stipulation is not valid because this is against public policy.
c. The stipulation is valid, only it will create a monopoly in trade.
d. The stipulation is valid. It can be ratified.
27. Statement No. 1: Mutual promise to marry if orally entered into is
unenforceable.
Statement No. 2: Violence or intimidation shall not annul the obligation,
if it was employed by a third person who did not take part in the contract.
a. Both are true
b. Both are false
28. D is indebted to C in the sum of P10,000. For the purpose of avoiding the
claims of C, D donated all his properties worth the same amount to X.
a. The contract is absolutely simulated.
b. The contract is rescissible.
c. The contract is merely voidable.
d. The contract is void.
29. In three of the following, the transaction is void. Which is the exception?
a. Oral contract of partnership wherein the capital is P3,000 or more.
b. Contracts in writing contemplating impossible services.
c. Authority of the agent orally made in sale of immovable property
d. Oral contract of partnership whenever immovable property is contributed.
30. D owes C P500. However, C's right has already prescribed.

Notwithstanding the knowledge of this fact, D paid the amount. Realizing this
mistake, D wants to recover the amount he paid.
a. D can be made to recover on ground of mistake.
b. D can be made to recover on the ground that his obligation is not legally
enforceable.
c. D can be made to recover because this will enrich C at the expense of D.
d. D cannot recover.
31. Which of the following contracts is voidable?

a. Those whose object is outside the commerce of men.
b. Those which are absolutely fictitious.
c. Those where one of the parties is incapacitated.
d. Those which contemplate an impossible service.
32. X, a former government employee, suffered from severe paranoia and

was confined in the mental hospital in 2017. After his release he was placed
under the guardianship of his wife to enable him to get his retirement pay. In
2019, he became a mining prospector and sold some mining claims.
In 2028, he sued to annul the sale claiming that he was not mentally
capacitated at the time of sale. The sale in question was:
a. Illegal c. Voidable
b. Void d. Valid
33. Example No. 1: G, guardian of W, sold W's house valued at P50,000 for
P37,500 or a lesion by one-fourth of the value.
Example No. 2: S sold his house valued at P50,000 for only P1,000
because S did not know the true value of the house.
a. Both contracts are rescissible.
b. Only No. 1 is rescissible.
c. No. 2 is voidable because there is an error or mistake.
d. Both contracts are valid and enforceable.
34. B1 Company bought out a competitor, B2 Corporation, with a stipulation

that B2 Corporation should not thereafter engage in any business in the
Philippines unless consented to and approved by B1 Company.
a. The stipulation is defective but subject to ratification.
b. The stipulation is valid because the parties are free to enter into any
stipulation, terms and conditions such as this one.
c. The stipulation is unenforceable as there was no showing that the sale was
done in writing.
d. The stipulation is void because it is contrary to public policy.
35. Statement No. 1: In voidable contracts, there is no need to ratify the

same before they can be considered valid. In unenforceable contracts,
ratification is mandatory before they can be considered enforceable.
Statement No. 2: There is undue influence if insidious words or
machinations were employed by a party on the other just to obtain the
latter's consent, without which the latter would not have entered into the
contract.
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
36. Statement No. 1: Dolo incidente entitles the person against whom it
was employed the right to seek the annulment of the contract.
Statement No. 2: A stipulation pour autrui is an exception to the rule
on relativity of contracts.
37. Example No. 1 - W, 16 years old, sold his house valued at P1M for
P50,000 or a 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 P400,000
because S did not know the true value thereof.
a. Both examples are unenforceable
b. No. 1 is rescissible; while No. 2 is unenforceable
c. No. 2 is unenforceable
d. Both contracts are binding
38. D forced C to lend him P10,000. The promissory note is in writing.

a. Contract remains to be valid.
b. The contract is rescissible because the contract is fraudulent.
c. The contract is void.
d. C cannot demand payment from D because the contract is unenforceable.
39. On July 15, 2017, X entered into a contract with Y. On February 10, 2018,
X discovered that fraud was committed at the time he entered into the
contract, a fraud that vitiated his consent. The action for annulment shall be
bought.
a. Within three years from the time of the fraud
b. Within four years from February 10, 2018
c. Within four years from the time A entered into the contract
d. On February 10, 2018
40. One of the stipulations contained in the contract between M Company

and its employees is that the company shall pay a bonus to employees of the
company who shall continue its employment for at least 2 consecutive years,
unless he quits or is discharged before the expiration of the period of 2
years. X, an employee of the company was discharged just one week before
the completion of the two-year period.
a. X is not entitled to the bonus because his discharge was in accordance
with the contract.
b. X is not entitled to the bonus, because the employer's
right to terminate is superior than the right of the employee to be employed.
c. X is entitled to the bonus whether the discharge is with or without cause.
d. X is entitled to the bonus because the debtor company has voluntarily
prevented the happening of the condition.
41. Statement No. 1: If one party was mistaken and the other acted
fraudulently or inequitably in such a way that the instrument does not show
their true intention, the former may ask for the annulment of the instrument.
Statement No. 2: The statement of a false cause in contracts shall
render them void, if it should not be proven that they were founded upon
another caused which is true and lawful.
a. Both are true
b. Both are false
42. When there is concurrence of offer and acceptance, there is:

a. Payment.
b. Revocation
c. Consent
d. None of the above
43. Essential requisites of a contract:

a. Consent
b. Cause
c. Subject
d. All of them
44. Which of the following instruments is not subject to reformation?

a. Simple donations inter vivos wherein no condition is imposed
b. Wills
c. When the real agreement is void
d. All of the above
45. Simulation of Contract - Absolute or relative. Relative when:
a. Parties not bound at all
b. The contract is void
c. The parties conceal their true agreement
46. Which of the following contract is enforceable even if not reduced in

writing.
a. Contract executed by one of the parties in a contract
b. Representation as to the credit of a third person
c. Lease of immovable for a period longer than one year
d. Agreement for the sale of immovable property
47. A intimidated B to marry his daughter. After a year, B would like to file
action for annulment but could not to do so because A was around to
intimidate him. The marriage contract is -
a. Rescissible
b. Voidable
c. Void
d. Unenforceable
48. The following, except one, are the characteristics of a void or inexistent
contract. Which is the exception?
a. The defense of illegality of the contract is available to third persons whose
interests are not directly affected.
b. They are not subject to ratification.
c. The right to raise defense of illegality cannot be waived.
d. The action or defense for declaration of their nullity or inexistence of the
contract does not prescribe.
49. D owes C P10,000. But the debt prescribed. Later, against the consent of
D, X pays C P10,000.
a. X can recover from D P10,000 because the latter was enriched at the
expense of X
b. X has no right
c. X cannot recover from D what he paid C
d. Both D and C are liable to X
50. The guardian of an insane person sold a house and a lot belonging to the
latter, valued at P100,000, to B, buyer for P74,000 with the approval of the
court. The contract is:
a. Valid d. Unenforceable
b. Rescissible e. Void
c. Voidable
51. A conferment of a direct benefit in a contract between two persons in

favor of a third person who must accept such benefit before the same is
withdrawn is known as:
a. Policitacion c. Donation propter nuptias
b. Stipulation por autrui d. Counter-offer
52. Statement No. 1: Advertisements for bidders are simply invitations to

make proposals, and the advertiser is not bound to accept the highest or
lowest bidder, unless the contrary appears.
Statement No. 2: Accidental elements of a contract are those agreed
upon by the parties, and cannot exist without being stipulated.
a. Both are true
b. Both are false
53. Statement No. 1: The action for annulment on the ground of fraud shall
be bought within 4 years from the time of the perfection of contract.
Statement No. 2: If a valid contract is novated to a void contract, both
contracts are considered void.
a. Both are true
b. Both are false
54. Contract with a false cause is -

a. Voidable
b. Void
c. Unenforceable
d. All of the above
55. 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.
56. Which of the following contract is not valid?

a. Mutual promise to marry entered into orally
b. Sale of immovable property orally entered into
c. One of the parties in a contract is incapable of giving consent
57. D forced C to lend him P10,000. The promissory note is in writing.

a. The contract is rescissible because the contract is fraudulent
b. The contract is void
c. C cannot demand payment from D because the contract is unenforceable
d. Contract remains to be valid
58. Type of defective contracts that creates rights and impose no obligation,
but are susceptible of ratification.
a. Voidable Contracts c. Rescissible Contracts
b. Unenforceable Contracts d. Void Contracts
59. Statement No. 1: An agreement which, by its terms and conditions, is

to be performed within a year from the making thereof is enforceable even if
entered into orally.
Statement No. 2: A contract for the sale of necessaries to a minor is a
voidable contract.
a. Both are true
b. Both are false
60. S owns an oil painting. In need of money, S sold the painting to B for
P1,000. After the sale, it was discovered that the painting was valuable and
worth P5,000.
a. S may rescind the contract on ground of lesion or inadequacy of cause
b. S may rescind the contract on ground of fraud
c. S may annul the contract on the ground of error
d. B is entitled to the benefit of the contract because it is valid and binding
61. A, bachelor lawyer, raped W twice. Upon learning this, “F” the father of
W, was able to force A to marry W under pain of being sued in court and
disbarred from the practice of his law profession. Which statement is correct?
a. The marriage may be annulled on the ground of force or violence
b. The marriage may be annulled on the ground of threat or intimidation
c. The defective marriage may, however, be ratified
d. There was no defect, the marriage was perfectly valid
62. A contract where one of the parties is incapable of giving consent is:
a. Rescissible d. Void
b. Voidable e. None of the above
c. Unenforceable
63. S, a minor, owns a specific property valued P50,000. B, capacitated, by

means of fraud induced S to sell his property to him (B) for P10,000 which S
did so. The contract is in writing.
a. The contract is binding from the start.
b. The contract remains unenforceable because it falls under the Statue of
Frauds.
c. The contract is rescissible because the ward suffered lesion by more than
one-fourth of the value.
d. The contract is void.
64. Must be in writing to be enforceable:
a. Lease of land for 12 months
b. Lease of car for 18 months
c. Both of a and b
d. None of a and b
65. This kind of defective contract refers to that contract which is validly
agreed upon because all the essential elements exist, but courts can nullify it
when there is damage or prejudice to one of the parties or to a third person.
Its enforcement would cause injustice by reason of some external facts.
a. Voidable Contract
b. Void or Inexistence Contract
c. Rescissible Contract
d. Unenforceable Contract
66. Sand B orally agree that S would sell and B would buy S's radio for P400,
two years from the date of the agreement. At the end of the two-year period,
S refused to deliver the radio although B was willing to pay.
a. B can compel S to deliver because B is willing to pay the price.
b. The contract falls under the Statute of Frauds, therefore unenforceable.
c. Statute of Frauds inapplicable because the price is less than P500.
d. The object is movable, oral contract is enforceable.
67. Statement No. 1: A stipulation in a contract of lease, which provides

that the tenant shall have the right to continue in possession of the leased
premises so long as he pays the monthly rentals thereon, is a valid
stipulation.
Statement No: 2: The seller sold to a minor some necessaries in the
amount of P600. The goods were delivered to the minor who, in turn, paid
the purchase price therefor. The contract is unenforceable.
a. Both are true
b. Both are false
68. Which of the following contracts is voidable?

a. Those where 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 collect the claims due them.
c. Those where the consent is vitiated by mistake, violence, intimidation,
undue influence or fraud.
d. Those whose object is outside the commerce of men.
69. S was forced by X to sign a contract with B for the sale of a specific
property for P10,000. C, a creditor of S, was prejudiced by the contract. What
can S do?
a. S may ask for annulment of the contract
b. S may ask for rescission of the contract
c. S may ask C to declare the contract voided
d. C may ask for the annulment of the contract
70. In the preceding number, what can C do?

a. C may ask for the rescission of the contract
b. C may ask for the reformation
c. C may ask S to declare the contract voided
d. C may ask for the annulment of the contract
71. Statement No. 1: Ratification of voidable contract is necessary for its

validity.
Statement No. 2: One can ask for the annulment of a contract based
on dolo incidente.
a. Both are true
b. Both are false
72. Example 1 - S sold to B in a private instrument his land. Later, B wanted

to have the sale registered, but registration requires a public instrument. In
here, B may compel S to execute the needed public instrument.
Example 2 - S sold to B orally his specific land. After B paid S the price
of the sale, he wants to register the land in his name but he needed a public
instrument of sale. In here B may compel S to execute the needed public
instrument.
a. Both examples are false
b. Only 1 is true
c. Only 2 is true
d. Both examples are true
73. In a contract of sale executed by S and B, it appears S sold his motor

vehicle to B and B bought it for P10,000. It turned out however, S has three
motor vehicles. Gallant valued P80,000: Hi-Ace van valued P70,000; and a
Jeep valued P60,000. Which of the following is correct?
a. The contract shall be reformed because there was mistake.
b. The parties can ask for interpretation because the word Motor vehicle is
ambiguous.
c. The parties can ask for annulment of the contract.
d. There is no contract.
74. Valid until annulled unless there has been a ratification

a. Rescissible contract c. Voidable contract
b. Inexistence contract d. None of the above
75. In three of the following defective contracts, ratification cleanses the

defects. Which is the exception?
a. Both parties are incapable of giving consent
b. Sale of immovable property or interest orally entered into
c. Sale of piece of land thru an agent wherein the authority is oral
d. Contracts entered into by a person who has been given no authority
76. Statement No. 1: A threat to enforce one's claim through competent

authority, if the claim is just or legal, does not vitiate consent.
Statement No. 2: Contracts entered into during a lucid interval are
valid. Contracts agree to in a state of drunkenness or during a hypnotic spell
are binding.
a. Both are true
b. Both are false
77. An incidental element of a contract

a. Implied warranty
b. Payment of interest in a loan
c. Delivery of the object in contract of pledge
d. All of the above
78. Statute of Frauds is applicable to:

a. Partially executed contracts
b. Oral contract of loan when the amount involved is less than P500
c. Contracts not to be performed within a year from the making thereof
d. All of the above
79. Contract which has no effect at all and cannot be ratified is a/an:
a. Unenforceable contract
b. Void contract
c. Voidable
d. All of them
80. An obligation which cannot be enforced by court action, but which is

binding on the party who makes it in conscience and according to natural
justice is called:
a. Civil obligations c. Pure obligation
b. Natural obligation d. Simple obligation
81. B called C by telephone to guaranty the debt of D to C. The contract

between B and C is:
a. Unenforceable
b. Voidable
c. Rescissible
d. None of them
82. Because of the intimidation employed by X, a third person, S sold his car
to B. This contract is:
a. Void
b. Voidable
c. Unenforceable
d. Rescissible
83. Statement No. 1: If the cause is not stated in the contract, it is
presumed that it is unlawful.
Statement No. 2: The action for rescission is subsidiary. It cannot be
instituted except when there is no other legal means to obtain reparation for
damages suffered.
a. Both are true
b. Both are false
84. S entered into a contract with B by threatening B that if the latter does
not agree to make the contract, S will publish defamatory matters
concerning B's wife.
a. The contract is valid because the defamatory matters to be published
does not relate to B, the contracting party.
b. The contract is voidable because such publication when carried out,
whether true or not, will cause a serious harm to B and his wife.
c. The contract is unenforceable but B is entitled to damages the moment
the publication is made.
d. Contract is void.
85. Statement No. 1: The interpretation of obscure words or stipulation in a

contract shall not favor the party who caused the obscurity.
Statement No. 2: Gross inadequacy of the price does not affect the
validity of contracts unless it can be shown that there was fraud, force or
violence, error or mistake, undue influence; or threat or intimidation
attending the execution thereof.
86. Which of the following can be considered as a feature of the void

contract?
a. Subject to ratification
b. They exist
c. Action or defense for nullity is subject to prescription
d. None of them
87. L entered into a contract of lease with X. T, the clerk of L, typed the
document. Due to T's negligence, the document made was that of sale
instead of lease.
a. The remedy is annulment
b. Parties may go to court for interpretation
c. Parties may enforce their right because it is enforceable
88. These persons are bound by contracts:

a. Contracting Parties
b. Assigns or Assign
c. Heirs
d. All of them
89. Who is liable for the loss of the subject matter by fortuitous event?
a. Creditor
b. Debtor
c. Both creditor and debtor
d. None of them
90. Contract that is made for a valuable consideration is:

a. Onerous
b. Gratuitous
c. Onerous and gratuitous
d. None of them
91. Contracts that cannot be sued upon unless ratified:

a. Voidable
b. Unenforceable
c. Rescissible
92. Which of the following contracts is rescissible?

a. Those where one of the parties is incapable of giving consent to a
contract.
b. Those where both parties are incapable of giving consent to a contract.
c. Those which are entered into by guardians whenever the wards whom
they represent suffer a lesion of more than 1/4 of the value of the object of
the contract.
d. Those which are absolutely simulated or fictitious.
93. The stage of "conception" of a contract is:

a. When the contract was fully executed
b. When the parties come to an agreement
c. When negotiations are in progress
d. When there is a meeting of the parties' minds
94. In a contract as written. D promises to pay C P10,000 on September 15,

2018. The consideration received by D is not stated in the contract.
a. The contract is valid because the cause is always presumed to exist.
b. The contract is valid so long as it in writing.
c. The contract is valid because cause is not essential to a contract.
d. The contract is void because the cause is not stated.
95. S makes an offer to B on January 1, 2018. B makes known his acceptance

through a letter sent on January 2, and received by S on January 10.
Meantime, on January 1, S became insane.
a. The contract is voidable because one party is insane.
b. There is already a meeting of minds, the contract is perfected.
c. The contract is not binding because there is no meeting of minds.
96 In the preceding number, S is perfectly sane but only an unemancipated

minor at the time the acceptance is communicated to him.
a. There is no meeting of minds between the parties, unless ratified by the
guardian of S.
b. The contract is not binding because the party is incapacitated.
c. The contract is binding between the parties.
97. Which of the following contracts is required to be in writing to be

enforceable?
a. An agreement that by its terms is not to be performed within a year from
the making thereof.
b. A special promise to answer for the debt, default or miscarriage of
another.
c. An agreement made in consideration of marriage, other than a mutual
promise to marry.
d. Sales of goods, chattels or things in action at a price not less than
P500.00.
e. All of the above.
98. Rescission of a contract can take place in this case:

a. When the things which are the object the contract are legally in the
possession of third persons who acted in good faith.
b. When he who demands rescission can return whatever he may be obliged
to restore. c. When the party seeking rescission can perform only as to part
and rescind as to remainder.
d. When the seller cannot return the installment paid to him by the buyer.
99. An agreement in restraint of trade.

a. Perfectly valid
b. Voidable
c. Unenforceable
d. Void
100. Example No. 1: The husband, through intimidation, was able to obtain
the consent of his wife, with regards to the sale of a piece of land belonging
to the wife for P1 million. The contract is voidable because there was
intimidation.
Example No. 2: In the preceding example, the right of the wife is to go
to court and file an action for annulment was four (4) years from the time the
intimidation ceased.
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.
101. Consent is manifested by the meeting of the offer and the acceptance
upon the thing and the cause which are to constitute the contract. Which of
the following constitutes a definite offer?
a. An offer made through an agent
b. Business advertisement of things for sale
c. Advertisement for bidders
d. All of the above
102. On July 15, 2017, X entered into a contract with Y. On February 10,
2018, X discovered that fraud was committed at the time he entered into the
contract, a fraud that vitiated his consent. The action for annulment shall be
brought.
a. Within three years from the time of the fraud
b. Within four years from February 10, 2018
c. Within four years from the time A entered into the contract
d. On February 10, 2018
103. In an "invitation to bid", B proposes the following: "I will buy the
property for P10,000. If the bid of any other offeror or bidder shall be
considered the best terms of amount and conditions, I am too equal to that
offer.”
a. The offer is speculative, because it cannot be considered as against
another offer which is certain.
b. The offer is considered a counter offer.
c. This is a continuing offer which is very certain.
d. The advertiser is not bound to accept the higher bidder.
104. In the preceding question, which of the following statements is correct?

a. If there is no more offer made, the contract is perfected on the offer of B
because he will be considered as the highest bidder.
b. However, if another bidder, X, bid P15,000, he will be considered as the
highest bidder and the contract is perfected.
c. In letter (b), if X increase his bid for P20,000, and no more bid equals his
bid, the contract is perfected for P20,000.
d. Answer not given.
105. The following contracts should observe the Statute of Frauds, except –
a. Guaranty
b. Lease of personal property longer than one year
c. Representation as to the credit of a third person
d. Lease of real property longer than one year
106. 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.
107. B fraudulently induces S to sell to him (B) a masterpiece painting for
P10.000 Subsequently. B sold it to X TO! P12,000, a good faith purchaser. S is
entitled to:
a. Rescind the contract with B plus damages
b. Recover the painting from X but no damages
c. Recover damages from B
d. Rescind the contract between B and X
108. This principle means that contracts take effect only upon the
contracting parties, their assigns or successors-in-interest
a. Relativity of contract
b. Obligatoriness of contract
c. Mutuality of contract
d. Freedom of contract
109. By this principle, the validity and efficacy of the contract cannot be left
to the will of one of the contracting parties.
a. Relativity of contract c. Mutuality of contract
b. Obligatoriness of contract d. Freedom of contract
110. S offers to sell his house to B for P100,000. B asks him if he would
accept P80,000. Which of the following is correct?
a. Because of ambiguity, both offers are terminated by operation of law.
b. B's response is a counter-offer effectively terminating the P10,000 offer
and instigating an offer for P80,000.
c. B's response is a rejection of the P100,000 offer, and there is no offer for
P80,000 because it is too indefinite to be an offer.
d. B's response is an inquiry, the P100,000 offer by S is still in force.
1. A meeting of minds between two persons whereby one binds himself with
respect to the other to give something or to render some service is known
as:
a. obligation.
b. consent.
c. contract.
d. stipulation.
2. The stages of a contract according to the order of their occurrence are:

a. birth, conception and consummation.
b. conception, consummation and birth.
c. conception, birth and consummation.
d. consummation, conception and birth.
3. The elements of a contract without which a contract would not exist are
known as:
a. accidental elements
b. natural elements.
c. special elements.
d. essential elements.
4. A consensual contract has the following essential elements:

a. consent of the contracting parties, object certain and cause or
consideration.
b. consent of the contracting parties, object certain, cause or consideration
and delivery of the object.
c. consent of the contracting parties, object certain, cause or consideration
and formalities required by law.
d. consent of the contracting parties, object certain, delivery of the object,
5. A real contract has the following essential elements:

consideration.
b. consent of the contracting parties, object certain cause or consideration
c. consent of the contracting parties, object certain cause or consideration
d. consent of the contracting parties, object certain delivery of the object,
6. A solemn or formal contract has the following essential elements:

consideration.
b. consent of the contracting parties, object certain, cause or consideration
c. consent of the contracting parties, object certain, cause or consideration
d. consent of the contracting parties, object certain, delivery of the object,
7. Elements that accompany certain contracts unless set aside or suppressed

by the parties are known as:
a. natural elements.
b. accidental elements.
c. essential elements.
d. original elements.
8. The warranty against hidden defects in a contract of sale is an example of:

a. natural element.
b. accidental element.
c. original element.
d. stipulated element.
9. They refer to particular stipulations of the parties in a contract.

a. Accidental elements
b. Natural elements
c. Inherent elements
d. Essential elements
10. One of the following is a natural element of a sales contract.

a. Terms of payment.
b. Rate of interest.
c. Place of delivery.
d. Warranty against eviction.
11. A contract that can stand by itself is known as:

a. accessory contract.
b. principal contract.
c. commutative contract.
d. gratuitous contract.
12. A contract that does not have any special name under the law is known
as:
a. nominate contract.
b. innominate contract.
c. special contract.
d. nominal contract.
13. A contract where both parties are required to do or give something is

known as a:
a bilateral contract.
b. unilateral contract.
c. gratuitous contract.
d. commutative contract.
14. A contract where the parties contemplate a real fulfillment, hence,
equivalent values are given is known as:
a. commutative contract.
b. gratuitous contract.
c. onerous contract.
d. aleatory contract.
15. The contracting parties may establish such stipulations, clauses. terms
and conditions as they may deem convenient provided, they are not contrary
to law, morals, good customs, public order or public policy. This is known as
the principle of:
a. liberty of contract.
b. mutuality of contract.
c. relativity of contract.
d. obligatory force of contract.
16. The contract must bind both contracting parties; its validity or
compliance cannot be left to the will of one of them. This is known as the
principle of:
a. mutuality of contract.
b. relativity of contract.
c. consensuality of contract.
d. freedom to contract.
17. Contracts take effect only between the contracting parties, their assigns
and heirs, except in cases where the obligations and rights arising from the
contract are not transmissible by their nature, or by stipulation or provision
of law. This principle of contract is known as:
a. relativity of contract.
b. mutuality of contract.
c. obligatory force of contract.
d. liberty of contract.
18. D borrowed P500,000.00 from C. D died without having paid his loan
obligation to C. He left S, his son and heir, properties worth P400,000.00.
a. S is liable to C for P500,000.00.
b. S is liable to C for P400,000.00.
c. S is liable to C for P100,000.00.
d. S is not liable at all because he should not be made to shoulder the
obligation of his father.
19. A contract may be enforced by or against a third person, except:

a. in the case of stipulation pour autrui.
b. when a third person induces another to violate his contract.
c. in case of contracts intended to defraud creditors.
d. when the benefit to the third person is merely incidental.
20. The principle that contracts are perfected by mere consent is known as:
a. consistency of contract.
b. consensuality of contract.
c. consummation of contract.
d. mutuality of contract.
21. Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith. From
perfection, the parties are bound not only to the fulfillment of what has been
expressly stipulated but also to all the consequences which, according to
their nature, may be in keeping with good faith, usage and law. This is known
as the principle of:
a. consummation of contract.
b. consensuality of contract.
c. obligatory force of contract and compliance in good faith.
d. mutuality of contract.
22. One of the following is not a real contract.

a. Pledge
b. Commodatum
c. Deposit
d. Sale
23. D borrowed P100,000.00 from C. The obligation is secured by a mortgage

on D's land and building. O registered the mortgage with the Register of
Deeds. Thereafter, D sold the land and building to X who was not personally
aware of the existence of the mortgage at the time of sale since only the
photocopy of the transfer certificate of title which did not yet contain the
annotation of the mortgage was shown to him. It was only when he went to
the Register of Deeds to register the sale of the land and building to him that
he learned of the mortgage.
a. C can collect from D and if D cannot pay, C can foreclose the mortgage
although the land and building are now owned by X.
b. C can collect from D, but if cannot pay, C cannot foreclose the mortgage
because X was not aware of the existence of the mortgage at the time he
bought the land and building.
c. C cannot collect from D. He can only go after the mortgage which was
given as security.
d. C cannot foreclose the mortgage because X wan not a party thereto.
24. It is the manifestation of the meeting of the offer and the acceptance
upon the thing and the cause which are to constitute the contract.
a. Consideration
b. Contract
c. Consent
d. Cause
25. On June 1, 2015, S offered to sell his only car to B for P100,000.00. B
accepted the offer by mailing his letter of acceptance on June 10, 2015. On
June 12, 2015. B. revoked his previous acceptance and mailed his letter of
revocation on the same date. S received the letter of acceptance on June 14,
2015 and the letter of revocation on June 15, 2015.
a. The contract was perfected on June 14, 2015 when S received B's letter of
acceptance.
b. The contract was not perfected because at the time the acceptance was
received, the parties were no longer of one mind.
c. The contract was perfected on June 10, 2015 when B sent his letter of
acceptance.
d. The perfection of the contract retroacts to June 1, 2015 when the offer was
made.
26. On May 1, 2015, S offered to sell a specific car to B for P500,000.00. B

sent his letter of acceptance to S on May 8, 2015. On May 10, 2015,
however, S died in a vehicular accident and his secretary received the letter
of acceptance on May 12, 2015 unaware that S had already died.
a. The contract was perfected on May 8, 2015 when B sent his letter of
acceptance.
b. The contract was perfected on May 12, 2015 when the secretary of S
received the letter of acceptance.
c. The contract was not perfected because the S became ineffective when he
died.
d. The contract was perfected on May 1, 2015 because the acceptance made
by B on May 9, 2010 retroacts to the date of the offer.
27. Three of the following instances will render and ineffective before
acceptance is conveyed. Which one not?
a. Civil interdiction of either party.
b. Insolvency of either party.
c. Insanity of either party.
d. Intoxication of either party.
28. S offers to sell his car to B for P125,000.00 cash. B. accepts the offer but
is willing to pay only P120,000.00.
a. The contract was perfected at the price of P125,000.00.
b. The contract was perfected at the price of P120,000.00.
c. The contract was perfected at the price of P122,500.00, the average price
of the offer and the acceptance.
d. The contract was not perfected because the acceptance by B was qualified
and it constituted a counter-offer.
29. P appointed A as his agent to sell P's only Honda Civic car for
P400,000.00 cash. On November 7, 2015, A, pursuant to the authority
granted to him by P, offered to sell the car to B at the price of P400,000.00. B
accepted the offer on November 8, 2015 by sending a letter of acceptance to
A, which letter of acceptance was received by A on November 9, 2015. On
November 10, 2015, A informed P that B had accepted the offer.
a. The contract was perfected on November 8, 2015 when B sent his letter of
acceptance.
b. The contract was perfected on November 9, 2015 when A received the
letter of acceptance.
c. The contract was perfected on November 10, 2015 when A notified P, the
true owner of the car, that B had accepted the offer.
d. The contract was perfected on November 7, 2015. since the acceptance
by B retroacts to the date of the offer.
30. On July 1, 2015, Serrano offered to sell his only Mercedes Benz car for
P1,000,000.00 to Benitez who was interested in buying the same. In his
letter to Benitez, Serrano stated that he was giving Benitez up to July 31,
2015 to make up his mind whether to buy the car or not. On July 25, 2015,
Serrano personally went to Benitez to inform him that he was no longer
willing to sell the car unless the price was increased to P1,400,000.00
because another buyer was interested in buying the car for the said amount
of P1,400,000.00.
a. Benitez may compel Serrano to sell to him the car for P1,000,000.00
b. Serrano may validly withdraw his offer to Benitez because the option was
not founded upon a consideration.
c. Serrano may not withdraw his offer until after the lapse of the option
period that he gave to Benitez.
d. The increase in price made by Serrano was not valid because it was made
within the option period.
31. Rockman and Company published an advertisement in the newspapers

which reads as follows "INVITATION TO BID: Construction of the company's
warehouse located at 123 Luzon Street, Sta. Quiteria, Quezon City.” The
advertisement also included the specifications of the warehouse to be
constructed. Three companies submitted their bids: ABC Company, with a bid
price of P4,500,000.00; DEF Company, P4.750,000.00; and GHI Company,
P5,000,000.00. After considering the financial capability, reputation and
experience of the bidders, the kind and quality of materials to be used and
other factors, Rockman and Company accepted the bid of DEF Company. ABC
Company, the lowest bidder, now questions the award made by Rockman
Company to DEF Company which submitted a higher bid.
a. The award to DEF Company is voidable because it was only the second
lowest bidder.
b. ABC Company should be the winning bidder having submitted the lowest
bid.
c. The award to DEF Company is valid because Rockman Company was not
bound to accept the lowest bidder.
d. The award to DEF Company is void by reason of Rockman's violation of the
terms of the invitation to bid.
32. One of the following is not incapable of giving his consent.

a. Insane persons.
b. Deaf-mutes who do not know how to write.
c. Deaf-mutes who know how to read.
d. Unemancipated minors.
33. A contract entered into by an incapacitated person is:

a. void.
b. voidable.
c. rescissible.
d. unenforceable.
34. Contracts entered into in a state of drunkenness or during hypnotic spell
are:
a. valid
b. voidable.
c. rescissible.
d. void.
35. A contract entered into by an insane person during a lucid interval is:
a. valid.
b. voidable.
c. rescissible.
d. void.
36. Aside from fraud and undue influence, the following are the vices of
consent, except:
a. violence.
b. intimidation.
c. mistake.
d. dealer's talk.
37. Mistake in three of the following will make a contract voidable. Which one
will not?
a. Mistake as to the substance of the thing which is the object of the
contract.
b. Mistake as to the principal conditions, which principally moved one or both
parties to enter into the contract.
c. Mistake as to the identity or qualifications of one of the parties, which
identity or qualifications have been the principal cause of the contract.
d. Simple mistake of account.
38. It involves the employment of serious or irresistible force to obtain

consent.
a. Intimidation.
b. Threat.
c. Violence.
d. Moral coercion.
39. It is present when one of the contracting parties is compelled by a

reasonable and well-grounded fear of an imminent and grave evil upon his
person or property, or upon the person or property of his spouse,
descendants, and ascendants, to give his consent.
a. Violence.
b. Physical coercion.
c. Intimidation.
d. Mistake.
40. One of the following contracts is not vitiated by intimidation or violence,
and hence valid.
a. A contract of sale which was signed by a party because his arm was being
twisted by a third person.
b. A contract of sale which was entered into because the other party was
pointing a gun at his wife.
c. A contract where a party was compelled to assign his property to the other
to pay a just debt because the latter threatened to sue him in court if he
does not pay his debt.
d. A contract of donation of a parcel of land which a party signed because
the other party threatened to burn his house.
41. It exists when a person takes improper advantage of his power over the
will of another depriving the latter of a reasonable freedom of choice.
a. Intimidation
b. Duress
c. Threat
d. Undue influence
42. Fraud exists in three of the following. Which is the exception?

a. When through the insidious words or machinations of one of the
contracting parties, the other is induced to enter into a contract which,
without them, he would not have agreed to.
b. When there is a failure to disclose facts, when there is a duty to reveal
them, as when the parties are bound by confidential relations.
c. When there is an expression of an opinion by an expert which turned out
to be wrong, and the other party relied upon such expert knowledge.
d. When the misrepresentation refers to the usual exaggerations in trade,
and the other party had an: opportunity to know the facts.
43. Abulencia, who knew that his ring was embellished with glass, told
Banzon that the embellishment was emerald. Banzon, who knew that his
watch was gold-plated, told Abulencia that it was made of pure gold. Banzon,
believing that Abulencia's ring was embellished with emerald, and Abulencia,
believing that Banzon's watch was made of pure gold, then entered into a
contract whereby they exchanged their respective articles. A week later
Banzon discovered that the ring was adorned only with an ordinary glass.:
a. The contract may be annulled at the instance of Banzon since he
discovered the fraud.
b. The contract may be annulled at the instance of Abulencia since Banzon
also employed fraud.
c. The contract is void because of the bad faith both parties; hence, it shall
not produce an effect.
d. Neither party may ask for annulment since both are guilty of fraud. The
contract therefore is valid.
44. An absolutely simulated contract is:

a. void.
b. voidable.
c. valid.
d. unenforceable.
45. One of the following statements does not pertain to a relatively

simulated contract.
a. The parties conceal their real agreement.
b. The parties are bound by their real agreement provided it does not
prejudice third persons.
c. The parties are bound by their real agreement provided it is not contrary
to law, morals, third persons, public order or public policy.
d. The parties do not intend to be bound at all.
46. Servando and Bernardo entered into a contract where they made it
appear that Servando was mortgaging his lot and building to Bernardo to
secure a contract of loan. The truth, however, was that Servando was selling
his lot and building to Bernardo. Which of the followings statements is true?
a. The parties are bound by the contract of sale.
b. The parties are bound by the contract of loan and mortgage.
c. The parties are not bound at all.
d. The parties are bound by the contract of sale only when third persons are
affected.
47. One of the following is not a requisite of the object of a contract.
a. It must be within the commerce of men.
b. If it is a right, it must be intransmissible.
c. It must not be contrary to law, morals, good customs, public order or
public policy.
d. It must be determinate as to its kind or capable of being made
determinate without the need of the parties entering into a new agreement.
48. S and B orally entered into a contract whereby S sold his one-year
production of eggs in his poultry farm to B lor P50,000.00 which amount B
immediately gave in cash to S. The contract between S and B is:
a. void because the object was not existing at the time of execution of the
contract.
b. valid because future things may be the object of contracts.
c. rescissible because B will likely suffer damage 11 the eggs do not come
into existence.
d. unenforceable because the contract was not in writing.
49. A died leaving properties estimated at P1,000,000.00 to his sons S and T.
Subsequently, S sold one-half of his inheritance to X for P300,000.00,
although his share was still to be delivered.
a. The contract is valid since the inheritance is an existing inheritance.
b. The contract is void because what S sold is future inheritance which may
not be the object of a contract as a rule.
c. The contract is rescissible.
d. The contract is unenforceable.
50. A contract whose cause is the promise of a thing or service by the other
party is:
a. an onerous contract.
b. a gratuitous contract.
c. a lucrative contract.
d. a remuneratory contract.
51. A contract whose cause is the liberality of the benefactor is:

a. a gratuitous contract or contract of pure beneficence.
b. a remuneratory contract.
c. an aleatory contract.
d. an onerous contract.
52. S sold his only car for P100,000.00 to B. Unknown to S. B bought the car
from him go that he could use the same in a bank robbery. What is the status
of the sale of the car by S to B?
a. The sale is void because the motive of B is illegal.
b. The sale is valid because the illegality of the motive of the parties to the
contract does not have any effect on its validity.
c. The sale is voidable because of the failure of B to disclose his motive to S.
d. The sale is rescissible at the instance of S because he would be damaged
by the illegal motive of B.
53. One of the following is not a requisite of cause in a contract. Which is it?
a. It must exist.
b. It must be lawful.
c. It must not be false.
d. It must be clearly stated in the contract,
54. D and C entered into a contract wherein D agreed to give to C

P50,000.00 within 30 days from the date of the execution of their agreement,
which, however, does not state the consideration received by D from C. What
is the status of the contract between D and C?
a. The contract is void because the cause is not stated in the contract.
b. The contract is valid because the cause is presumed to exist and that it is
lawful.
c. The contract is rescissible because D suffered damage by reason of
absence of cause.
d. The contract is valid provided another contract is executed between D and
C to state the cause.
55. The defective contracts arranged according to the degree of their

defectiveness from the least defective to the most defective are:
a. voidable, rescissible, unenforceable, and void contracts
b. rescissible, unenforceable, voidable, and void contracts.
c. rescissible, voidable, unenforceable, and void contracts.
d. unenforceable, rescissible, voidable, and void contracts.
56. The following are characteristics of rescissible contracts except:

a. they may be set aside for equitable reasons.
b. they are valid until rescinded.
c. the action to rescind them prescribes.
d. the action to rescind them are not available to third persons even if their
interests are directly affected.
57. The following contracts are rescissible, except:
a. Those entered into by guardians whenever the wards whom they
represent suffer lesion by more than one-fourth of the value of the things
which are the object of the contract.
b. Those entered into in representation of absentees, if the latter suffer
lesion by more than one-fourth of the value of the things which are the
object of the contract.
c. Those undertaken in fraud of creditors but the latter can still collect the
claims due them through other means.
d. Those which refer to things under litigation if they have been entered into
by the defendant without the knowledge and approval of the litigants or of:
competent judicial authority.
58. G the guardian of M, a minor, sold the fish harvested from the fishpond of
M for P7,400.00. The fish, however had a value of P10,000.00.
a. The sale is rescissible because M suffered lesion by more than one-fourth
of the value of the fish sold.
b. The sale is voidable because M is a minor.
c. The sale is unenforceable because G sold the fish without approval of the
courts.
d. The sale is void because the object is outside the commerce of men.
59. The following are the requisites of a rescissible payment, except:
a. the debt is already due.
b. the debtor is insolvent.
c. the debtor pays the debt.
d. the payment is not yet due.
60. Rescission of a contract will prosper in one of the following cases. Which
is it?
a. When there are other legal means to obtain reparation of the damages
caused.
b. When he who demands rescission cannot return whatever he may be
obliged to restore.
c. When the object of the contract is in the possession of a third person who
purchased the property of the debtor in bad faith.
d. When the action to bring rescission has prescribed.
61. D owes the following creditors: X, P50,000.00; Y, P60,000.00; and Z,

P90,000:00. He has assets valued at P400,000.00. Subsequently, D donated,
among his assets, a parcel of land valued at P250,000.000 to C. The donation
and acceptance were made in a public instrument. The donation of the land
made by D to C is:
a. rescissible, because it was presumed to have been made in fraud of
creditors.
b. unenforceable, because D was not authorized by his creditors.
c. void, because the donation and acceptance should be registered.
d. voidable, because D does not have the free disposal of his property.
62. C filed a complaint in court against D to collect a money debt amounting

to P500,000.00. After due hearing, the court rendered judgment in favor of C.
Shortly after the rendition of the judgment and before C has collected D's
debt, D sold a parcel of land to X. 2, another creditor, learned the sale made
by D to X and now files an action to rescind the sale.
a. The right to rescind the sale is exclusively granted to Z because it was, he
who first Iearned of the sale and he has still to file a claim to collect D's debt.
b. The right to rescind the sale is exclusively granted to C because it was, he
who obtained a favorable judgment and he has not yet collected D's debt.
c. Both C and Z have a right to rescind the sale since the sale is presumed in
fraud of creditors having been made by party against whom judgment has
been rendered.
d. Neither C nor Z has a right to rescind the sale.
63. R, the representative of A, an absentee, sold the corn with a value of

P30,000.00 and the palay with a value of P50,000.00, harvested from A's
agricultural farm for a total price of P50,000.00. A, whose domicile was
subsequently known, was informed of the sale made by G. Based on the
foregoing facts, which of the following statements is incorrect?
a. A may seek payment of an additional P30,000.00 to recover the damages
suffered.
b. A may just seek rescission of the sale of the corn to recover the damages
he suffered.
c. A may seek rescission of the sale of part of the corn. and part of the rice to
the extent of the damages he sustained.
d. A may seek the rescission of the total sale to recover the damages he
suffered.
64. The following contracts are voidable, except:

a. contracts entered into during a state of drunkenness or hypnotic spell.
b. contracts entered into during a lucid interval.
c. contracts where one of the parties is incapable of giving consent.
d. contracts where the consent of one party is vitiated by violence
intimidation, mistake, fraud or undue influence.
65. The action for annulment must be brought within four years. Which of the
following is false with respect to the reckoning of the beginning of the
prescriptive period?
a. In cases of intimidation, violence and undue influence, the period begins
from the time the defect in the consent ceases.
b. In case of fraud, the period begins to run from the discovery thereof.
c. In case of mistake, the period begins to run from the time it was
committed.
d. In cases of contracts entered into by minors or other incapacitated
persons, the period runs from the time guardianship ceases.
66. One of the following statements concerning ratification of a voidable

contract is false. Which is it?
a. Ratification extinguishes the action to annul a voidable contract.
b. Ratification cleanses the contract from all its defects from the moment it
was constituted.
c. Ratification requires the conformity of the party who has no right to bring
the action for annulment.
d. Ratification may be made by the guardian of the incapacitated person, or
the incapacitated person upon attaining capacity, or the party whose
consent was vitiated.
67. One of the following may not annul a voidable contract.

a. The party whose consent is vitiated by violence, intimidation, mistake,
fraud or undue influence.
b. The incapacitated person when he attains capacity.
c. The guardian, during the ward's incapacity.
d. The party who is capable of entering into a contract.
68. S, an employee of a private company, sold his car for P100,000.00 to B,

whom he knew was only 17 years old. S delivered the car to B who
immediately paid the amount of P100,000.00. Later, S was transferred to
another branch of his employer which was quite a distance from his
residence. He wanted to get back the car from B so that will have something
to use in going to and new office. Neither B nor his guardian has registered
the sale with the Land Transportation Office.
a. S can file an action to annul the sale he made to B because he was
mistaken in selling the car which he realized he badly needed.
b. S can ask the court to annul the sale because B was a minor when the
contract of sale was entered into and it has not yet been recorded with the
Land Transportation Office.
c. Only B, when he attains the age of majority, or his guardian, while B is still
a minor, can bring an action to annul the contract.
d. The minority of B has no effect on the validity of the contract since the
parties entered into the contract of sale freely.
69. The following contracts are unenforceable, except:

a. those entered into by one who has no authority or legal representation.
b. those that do not comply with the Statute of Frauds.
c. those where both parties are incapable of giving consent to a contract.
d. those where the consent of a party is vitiated by violence, intimidation,
mistake, fraud of undue influence.
70. Under the Statute of Frauds, certain contracts must be in writing to be
enforceable. One of the following contracts is enforceable although not in
writing. Which is it?
a. Sale of movables at a price of not less than P500.00.
b. A representation as to the credit of a third person.
c. An agreement made in consideration of marriage other than mutual
promise to marry.
d. An agreement for the leasing for a longer period than one year of a
personal property.
71. The Statute of Frauds applies only to:

a. wholly executed contracts.
b. contracts wholly or partially executed on the part of the debtor.
c. contracts wholly or partially executed on the part of the creditor.
d. wholly executory contracts.
72. Severino, orally sold a one-square meter lot for P475.00 to Benedicto,
chairman of Barangay Mapayapa, who was officially authorized in a barangay
resolution to look for and buy a lot where the barangay would construct a
barangay marker. Since Benedicto did not have sufficient cash at that time,
he told Severino that he would give the amount the following day. The next
day. Benedicto went to the place of Severino to pay the price of the lot but
Severino refused to accept it, saying that the sale is unenforceable not being
in writing.
a. The sale of the lot is enforceable although not in writing because the price
is less than P500.00.
b. The sale is enforceable because Benedicto was duly authorized to buy the
lot through a resolution which is in writing.
c. The sale of the lot is void not being in a public instrument.
d. The sale is unenforceable since the sale of real property must be in writing
regardless of the price to be enforceable.
73. On June 1, 2014, Mother Lilac, a movie producer, met Claudine Santos, a
movie actress at the lobby of the Manila Hotel, Mother Lilac informed
Claudine Santos that she was producing a movie the filming of which would
start on August 1, 2015 and that she was offering Claudine Santos the
starting role for a fee of P2.000.000.00. Claudine Santos accepted the offer
and shook hands with Mother Lilac to seal their agreement. However, Mother
Lilac gave Claudine Santos a check for P200,000.00 as initial payment. On
August 1, 2015; Mother Lilac called Claudine Santos for the shooting of the
movie but Claudine Santos refused to honor the agreement saying that it
was not enforceable, not being in writing.
a. Mother Lilac cannot enforce the contract against Claudine Santos because
it was entered into orally.
b. Mother Lilac can enforce the contract against Claudine Santos because
Claudine Santos had accepted benefits under the contract.
c. Claudine Santos may just return the payment because it was made in
check which is not legal tender.
d. Claudine Santos is not bound under her agreement with Mother Lilac
because she did not sign any writing.
74. D was driving on his way to Manila from the province when he suffered a
busted tire. Not having any spare tire, he went to a nearby car spare parts
store to buy a new tire. However, he did not have sufficient money with him
so he phoned G, his friend, who happened to know S, the store owner. G then
instructed D to give to s the telephone through which G told S "Don't worry. If
D cannot pay, just charge me." D was thus able to buy a new tire for
P6,000.00 for which is issued D & sales invoice.
a. If D cannot pay, S can proceed against G to make good his promise to pay
D's debt.
b. G's promise cannot be enforced against him because he did not execute
any writing for the guaranty he made.
c. S can enforce G's promise to answer for D's debt since the guaranty was
witnessed by D.
d. S can enforce G's promise because there was a writing of some kind, the
invoice for the sale of the tire.
75. A month ago, S, 17 1/2 years old, orally sold his bicycle for p2.000.00 to
B, his neighbor, who was only 16 years old. M. the mother of S, learned
about the sale by S of his bicycle, and demanded that S give her the amount
he received. S. thus gave the proceeds of the sale to his to spent the same
for the family's daily expenses. F, the father of B, also learned about the
purchase by B of the bicycle when he saw it parked at their door and began
using it almost daily since B bought it. Based on the foregoing facts, what is
now the status of the sale entered into between S and B?
a. Unenforceable because both parties were incapacitated to enter into the
contract.
b. Unenforceable because the sale was not in writing.
c. Validated from inception because of the subsequent acts of the parent of
the parties.
d. Voidable because while B was only 16 years old, s was nearing the age of
majority which is 18 years.
76. The following contracts are void or inexistent, except:

a. those whose cause, object or purpose is contrary to law, morals, good
customs, public order or public policy.
b. those which are absolutely simulated or fictitious.
c. those whose cause or object did not exist at the time of the transaction.
d. those where one of the parties employed fraud to obtain the consent of
the other.
77. The following contracts are void or inexistent, except:

a. those whose object is outside the commerce of men.
b. those which contemplate an impossible service.
c. those where the intention of the parties relative to the principal object of
the contract cannot be ascertained.
d. those where one of the parties is guilty of fraud in performing his
obligation.
78. The following are characteristics of void or inexistent contracts, except:

a. the right to set up the defense of illegality cannot be waived.
b. the action or defense for the declaration of the inexistence of a contract
does not prescribe.
c. a void contract can be ratified by the acceptance of benefits under it by
one or both of the parties.
d. the defense of illegality of contracts is not available to third persons whose
interests are not directly affected.
79. If the illegal contract between the parties is a criminal offense and both
parties are guilty (in pari delicto), such illegal contract shall produce the
following effects, except:
a. the parties shall have no right of action against each other.
b. both parties shall be criminally prosecuted.
c. the effects and instruments of the crime will be confiscated in favor of the
government.
d. the parties may recover what they have given if it is not illegal in itself.
80. If the illegal contract between the parties is a criminal offense but only
one party is guilty, such illegal contract shall produce the following effects,
except:
a. the guilty party will be criminally prosecuted.
b. neither party may compel the other to comply with his undertaking.
c. the instruments shall be confiscated in favor of the government.
d. the innocent party cannot recover what he has given.
81. If the contract is illegal but it does not constitute a criminal offense and
only one party is guilty, such illegal contract shall produce the following
effects, except:
a. the guilty party cannot recover what he has given.
b. the guilty party cannot ask for the fulfillment of what has been promised
him.
c. the innocent party cannot be compelled to comply with his promise.
d. the innocent party cannot demand the return of what he has given.
82. The following contracts are required to appear in a public document for
the convenience of the parties so that they may be registered into the proper
recording office, except:
a. contracts which have for their object the creation of real rights over
immovable property.
b. the acceptance of an inheritance.
c. the power to administer property.
d. the cession of actions or rights proceeding from an act appearing in a
public document.
83. Reformation of instruments has the following requisites, except:

a. there must be a meeting of minds of the parties to the contract.
b. the true intention of the parties is not expressed in the instrument.
c. the failure of the instrument to express the true intention of the parties is
due to mistake, fraud, inequitable conduct or accident.
d. the contract must be in a public instrument.
84. Reformation of an instrument is available in the following cases, except:

a. when a mutual mistake of the parties causes the failure of the instrument
to disclose their agreement.
b. when one party was mistaken and the other party acted fraudulently or
inequitably in such a way that the instrument does not show their true
intention.
c. when a party was mistaken and the other knew or believed that the
instrument did not state their real agreement.
d. when one of the parties has brought an action to enforce the contract.
85. Reformation is not available in the following cases, except:

a. simple donations inter vivos wherein no condition is imposed.
b. wills.
c. when the real agreement is void.
d. when through the ignorance, lack of skill, negligence or bad faith on the
part of the person drafting the instrument or of the clerk or typist, the
instrument does not express the intention of the parties.
86. As a rule, a contract of sale is perfected:

a. upon compliance with the requirements of the law as to form.
b. upon delivery of the object of the contract.
c. upon the meeting of the minds on the thing which the object of the
contract and upon the price.
d. upon demand.
87. With the intention of raising money to buy a gun which he would use in
killing X, his mortal enemy, S sold car for P100,000.00 cash to B who knew
nothing of the intention of S in selling the car. After the sale, S was able to
buy a gun complete with all the papers required by law. B, on the other hand,
was able to register the car in his name at the Land Transportation Office.
a. the sale of the car by S to B is valid provided S does not kill X.
b. The sale of the car by S to B is void if S kills X.
c. The sale of the car by S to B is valid whether S kills X or not.
d. The sale of the car by S to B is void whether S kills X or not
88. Six years ago, Marcelo, 17 years old, sold his one-hectare agricultural lot
to Bernardo for P100,000.00. Marcelo invested the proceeds of the sale in a
business which was successful at the start but had gone through difficult
times as a result of the economic crisis. He thought of the agricultural lot
that he sold to Bernardo which had been enjoying bumper crops since
Bernardo bought it from him. Marcelo now approaches you to seek your help
on whether it would still be possible to annul the sale of the agricultural lot to
Bernardo. What advice will you give to Marcelo?
a. Only Marcelo may annul the sale on the ground of his incapacity.
b. Only Bernardo may annul the sale on the ground of Marcelo's incapacity.
c. Neither Marcelo nor Bernardo may annul the sale on the ground of
Marcelo's incapacity.
d. Both Marcelo and Bernardo may annul the sale on the ground of Marcelo's
incapacity.
89. A contract of sale is not a:

a. principal contract.
b. nominate contract.
c. consensual contract.
d. real contract.
90. Gregorio, a wealthy businessman, had often paid the debts of Demetrio,
his younger brother, in order to maintain then family's good name. One day,
Gregorio received a text message in his cellphone from Bernardo, a banker,
informing Gregorio that Demetrio had obtained a loan from the bank but had
fallen behind in his payments. Gregorio texted back as follows: "Don't worry.
If he doesn't pay in three months, I will be the one to pay.” No other
information was contained in the body of the text message. After three
months, Bernardo sent again a text message to Gregorio to inform him that
Demetrio had not made any payments and that Bernardo was demanding
payment from Gregorio on account of the promise he had made three
months before.
a. Bernardo may enforce payment against Gregorio on account of his
promise since he had been paying off the other debts of Demetrio.
b. Bernardo may not demand payment from Gregorio because Gregorio's
promise is unenforceable.
c. Bernardo may enforce payment against Gregorio as long as Bernardo did
not erase in his cell phone the text message, he received from Gregorio
which is written evidence of Gregorio’s promise.
d. Bernardo may enforce payment from Gregorio because as a wealthy
businessman, Gregorio should protect his name and that of his family.
91. Perfecto offered to sell his house and lot to Reynaldo 101 PL 500.000.00.
Perfecto told Reynaldo that he was giving Reynaldo thirty (30) days to decide
whether to buy or not the house and lot. Reynaldo accepted the option but
did not give anything to Perfecto to support the option given him. Twenty
days later, Perfecto found another buy who was ready to buy the house and
10 P2,000,000.00. Perfecto wants to ask von whether he call still withdraw
the offer he made to Reynaldo. Decide.
a Yes, Perfecto may withdraw the offer because he stands to gain an added
profit of P500,000.00 and this will be more than enough to pay any damages
to Reynaldo.
b. Yes, Perfecto may withdraw the offer by just informing Reynaldo of such
fact.
c. No, Perfecto may not withdraw the offer because the option was accepted
by Reynaldo although Reynaldo did not give anything in support thereof.
d. No, Perfecto may not withdraw his offer until the lapse of the period given
to Reynaldo to exercise his option.
92. D insured his house against fire with insurance Company: The insurance
policy which was prepared and printed by C Insurance Company was signed
by D after reading its terms. You are to determine which of the following
characterize the contract between D and C Insurance Company.
I. Auto-contract. II. Contract of adhesion.
III. Aleatory contract. IV. Nominate contract.
The contract between D and C insurance Company is:
a. I, II and III.
b. II, III and IV.
c. I, II and IV.
d. I, III and IV.
93. Datiles obtained from Cortez a loan of P50,000.00 which was payable in 2
months. Datiles failed to pay the debt on the due date despite repeated
demands from Cortez. When the debt was still outstanding after 6 months,
Cortez asked his counsel, Atty. Antolin, to write a letter to Datiles to demand
payment within one (1) week and with a threat of court action if no payment
was not received within the said period. Datiles, afraid of the threat of a
court action against him, was constrained to sign a deed assigning his lot in
favor of Cortez to pay his debt.
a. the deed of assignment is voidable because of intimidation employed
upon Datiles.
b. The deed of assignment is valid and enforceable, the threat of a court
action made by Cortez through his lawyer being a legitimate exercise of his
right.
c. The deed of assignment is voidable because of the undue influence
exerted by Atty. Antolin, the counsel of Cortez, on Datiles.
d. The deed of assignment is void because Datiles did not give his consent
voluntarily.
94. D obtained a loan of P100,000.00 from C. The loan agreement showed

that the loan was payable within one year with interest at 6% per annum.
However, there was no provision saying that the rights and obligations of the
parties would be transmitted to their heirs or successors-in-interest. Before
maturity, C died leaving his son S as heir. Which of the following statements
is correct?
a. S cannot collect from D because no mention was made in the agreement
that the credit right would be transmitted to the heirs of C.
b. S can collect from D although no mention was made in the agreement that
the credit right would be transmitted to the heirs.
c. S cannot collect from D because the credit right is personal to C.
d. S cannot collect from D because the law prohibits the transmission of
credit rights.
95. W, a woman, agreed to live with H, a man, as the wife of H without the
benefit of marriage in exchange for the monthly support of P10,000.00 that
H would give to W. Both H and W are single, of legal age, and there is no
legal impediment for them to get married. Their parents have no objections
to the two getting married. Based on the foregoing information, which of the
following statements is true?
a. The agreement between H and W is valid because they can legally get
married if they want to.
b. The agreement between H and W is void for being contrary to morals.
c. H may legally demand that W live with him as his wife.
d. W may legally demand that H give her the monthly support of P1000.00
that he had promised.
96. Angel dela Guardia, guardian of Eduardo Menor, a minor, sold the palay
harvested from the land belonging to Eduardo Menor for P42.000.00. The
palay had a value of P50,000.00. At the time of the sale seven months ago,
Eduardo was 17 ½ years old. Eduardo wants to recover the damages he
suffered under the contract entered into by his guardian. What is the remedy
available to Eduardo Menor?
a. Annulment because Eduardo Menor was only 17 2 years old at the time
the sale was made by Angel dela Guardia.
b. Rescission because Eduardo Menor suffered lesion of P8,000.00.
c. Both rescission and annulment.
d. Neither rescission or annulment.

a. Contracts entered into during a hypnotic spell.
b. Contracts entered into in a state of drunkenness.
c. Contracts entered into to defraud creditors when the latter cannot collect
the claims due them.
d. Contracts where both parties are incapable of giving consent.
98. A a duly authorized agent of P, wrote a letter to B. on August 1, 2015

offering to sell P's only Mercedes Benz car for P200,000.00 cash. On August
3, 2015, B wrote a letter to A stating that he was accepting all the terms of
the offer; which letter was received by A on August 5, 2015. Before A could
relay such acceptance to P, P died in a vehicular accident on August 6, 2015.
a. The contract was not perfected because P, the real party to the sale, died
before the acceptance came - to his knowledge.
b. The contract was perfected on August 1, 2015.
c. The contract was perfected on August 3, 2015.
d. The contract was perfected on August 5, 2015.
99. The cause of a contract differs from the motive of each party to the
contract in that motive:
a. is an essential element of a contract.
b. although illegal, does not affect the validity of the contract.
c. is always known by the other party.
d. when illegal will render the contract void.
100. P is a minister of a certain church whose members include X. X regularly

confides in P because of his many personal problems. P is interested in
buying the lot of X and, his position as elder of the church and confidant of X
to sell to him the lot. Should X sell the lot to P by reason of P taking
advantage of his confidential relationship with X, the contract between them
would likely be voidable because of:
a. intimidation.
b. undue influence.
c. fraud.
d. mistake.
101. M, a movie actor who has fathered many children by different women,
donated a house and lot to X believing that the latter was his illegitimate
son. The deed of donation and its acceptance were in a public instrument
and a new certificate of title to the house, and lot was issued in the name of
X. A few months later, M discovered that X was not his son but that of
another movie actor. M now wants to annul the contract.
a. M may no longer annul the contract because all requisites have been
complied with and a new title already issued in the name of X.
b. M may annul the contract on the ground of mistake as to the identity of X.
c. M may not annul the contract but he can rescind it because he suffered
damages.
d. M need not annul the contract but he can declare void ab initio.
102. S convinced B to buy a gold-plated bar which S told was made of pure
gold. B bought the thing believe it was really made of pure gold. The contract
and B is:
a. valid.
b. voidable.
c. rescissible.
d. void.
103. D went to the store of C and asked the latter to sell to him construction
materials on credit. Since C did not know him, he denied D's request. R, a
rich businessman in the community, happened to be at the store at that time
and overheard the conversation. He told C, "I personally know D. He has a
good credit reputation." Accordingly, C granted credit sale to D. The sale was
evidenced by an invoice issued by C. Later however, C could not collect from
D because it turned out that the representation made by R as to the credit of
D was false.
a. C can go after R for damages by reason of the latter's misrepresentation.
b. C cannot go after R for damages because R's representation was not in
writing.
c. C can go after R because there was a sales invoice evidencing the sale.
d. C can go after R because it was R's representation that induced him to
grant a credit sale to D. The form of the representation is immaterial.
104. On June 1, 2015, S and B entered into an oral contract of sale whereby S
sold his computer to B for P50,000.00. The parties agreed that S shall deliver
the computer to B on June 10, 2015 at the place of B. B, however, is required
to pay the price upon agreement. B complied with his obligation by paying
the price to B in cash on June 1, 2015. As of June 1, 2015 –
a. The contract of sale between S and B is wholly executory.
b. The contract of sale between S and B is wholly executed.
c. The contract of sale between S and B is partly executed.
d. The contract oi sale should be in writing before it can be determined
whether it is executed or executory.
105. B bought a baby boy from S. B knew that the baby boy was his
illegitimate son by a woman named, W, and which W sold to S. The contract
between B and S is:
a. valid.
b. void.
c. unenforceable.
d. voidable.
106. D, out of his love and affection for C, donated a parcel of land to the
latter who accepted it. The formalities required by law were complied with.
The contract between D and C is:
a. an onerous contract.
b. a gratuitous contract.
c. a remuneratory contract.
d. an accessory contract.
107. The cause of the contract in Number 106 is:

a. the parcel of land.
b. the acceptance of the donation by C.
c. the generosity of D.
d. the contract has no cause because C did not give any consideration to D.
108. Which of the following contracts is valid, enforceable and would not
require any further act for the convenience of the parties other than its
registration with the proper government office?
a. Oral sale of a piece of land made through an agent whose authority is in a
public instrument.
b. Sale of a piece of land in a public instrument made through an agent
whose authority was given orans by the principal.
c. Sale of a piece of land in a private instrument made through an agent
whose authority is public instrument.
d. Sale of a piece of land in a public instrument made through an agent
whose authority is in a public instrument.
109. S sold his only horse to B for P30,000.00. The parties agreed that S shall
deliver the horse one week from the execution of their agreement. B
however, is require pay the price immediately in certified check. In the place
of S and B, it was the custom that anyone selling a horse should place a
horseshoe on its hooves. However, this was not stated in the agreement
including how the horse would be cared for before delivery.
a. S is not obliged to place a horseshoe on the horse although it was the
custom in the place because S and B did not stipulate about it.
b. S is obliged to place a horseshoe on the horse because the observance of
custom or usage in the becomes part of the contract.
c. S is not obliged to take care of the horse before delivery because the
caring of the horse was not stipulated.
d. S and B are bound only by the terms stated in their agreement.
110. In January 2008, S, 17 years old, sold his only car to B, 21 years old. The
sale was without the knowledge of G, the guardian of S. Assuming that an
annulment case is failed today:
a. S may bring the action for annulment.
b. G may bring the action for annulment.
c. B may bring the action for annulment.
d. Annulment will not prosper whoever will file it.
111. Which among the following contracts is void?

a. A contract of barter between S, insane, and B, 17 years old.
b. A contract of sale where B, the buyer, twisted the arm of S, the seller, so
that S would sign the deed of sale.
c. A contract of sale where B, the buyer, aimed a gun at the wife of S, so that
S would sign the deed of sale.
d. A contract for the sale of a cow which is suffering from a contagious
disease.
112. Which of the following contracts is valid and enforceable?

a. An oral promise to answer for the default of another.
b. A donation and its acceptance in a private instrument of a parcel of land.
c. An oral lease of a mining equipment for more than two years.
d. An oral contract of sale of a ring worth P450.00 between an insane and a
minor.
113. S and B entered into a contract where they made it appear that S sold
to B a parcel of land worth P50,000.00. In reality, however, S borrowed from
B P50,000.00 with s. mortgaging the parcel of land as security for the debt.
a. S and B are bound by the contract of loan and mortgage.
b. S and B are bound by the contract of sale.
c. S and B are not bound at all.
d. S and B are bound by the contract of loan and mortgage if third persons
are affected.
114. S, a store owner, hired the services of E as a clerk in the store at the
minimum wage. E began to work immediately although no employment
papers were signed by S and E. After 1 year and 2 months without E
receiving any compensation except free meals and lodging, E demanded
payment from S. S refused to pay E on the ground that their contract was
unenforceable not being in writing and that the employment already lasted
more than a year.
a. The contract is unenforceable because it is not in writing and it has
already been one year from the time it was entered into.
b. The contract is valid and enforceable although not in writing.
c. The contract is void because an employment contract must be in writing to
be valid.
d. The contract is rescissible because E suffered damages by reason of non-
payment of his compensation.
115. S sold a parcel of land to B for P100,000.00 with B paying the said
amount immediately. Although S delivered the transfer certificate of title of
the land to B, the parties did not execute any document at all for the sale
except the receipt for the payment which S issued to B. B now wants to
register the sale with the Register of Deeds.
a. B can compel S to execute a Deed of Sale which is duly notarized so that B
can register the sale.
b. B cannot compel S to execute a Deed of Sale because the contract is
unenforceable.
c. The contract between S and B is void because it was not in the form
required by law.
d. The contract between S and B is rescissible, hence B can sue for damages.
116. S and B entered into a contract whereby S sold his car to B for
P100,000.00. Based on the foregoing, which of the following statements is
incorrect?
a. The contract is voidable if S is 17 years old, and B is 25 years old.
b. The contract is unenforceable if S is 17 and B is insane.
c. The contract is void if B, 25 years old, compelled S, 30 years old, to sign
the deed of sale by threatening to burn the house of S.
d. The contract is rescissible if at the time of the sale, the car was the subject
of litigation brought by X against S to recover the car, and the court and X
did not give their authority to the sale.

a. A contract where a party gave his consent in a moment of drunkenness.
b. A contract where a party gave his consent because the other party
threatened to sue him for an unpaid debt.
c. A contract where a party gave his consent because the other party
threatened to kill the first party's spouse.
d. A contract where there was inadequate cause attended by mistake.
118. A entered into a contract with B whereby B agreed not to testify in a

criminal case filed against A in exchange for P5,000.00 to be given by A. The
contract between A and B is:
a. void for being contrary to law.
b. void for being contrary to good customs.
c. void for being contrary to public policy.
d. valid because there is nothing wrong when one does not want to testify
against another in a crime.
119. Which of the following must be in writing to be enforceable as required

by the Statute of Frauds?
a. A subscription for 100 shares of stock of a corporation at P100.00 per
share.
b. A contract for the construction of a building scheduled to begin 3 months
after the execution of the contract.
c. A contract for the lease of an agricultural lot for a period of 8 months.
d. A contract whereby one agrees to pay another's debt if the latter defaults
in his payment.

a. A written contract for the purchase of a new-born baby who is the
illegitimate child of the buyer.
b. A written contract of employment where the employee agreed voluntarily
not to demand overtime payment for work rendered in excess of the regular
hours of work per day.
c. An oral contract for the sale of a piece of land for P50,000.00 with the
buyer giving a down payment of P20,000.00.
d. An oral contract where the fruits of an immovable belonging to the debtor
are to be applied to the interest and principal of his obligation.
121. S, 17 1/2 years old, sold his bicycle to B, 24, for P12,000.00. The price is
payable in 12 monthly installments. After reaching. 18, S continued to collect
the remaining six installments until the price was paid in full.
a. S may still annul his contract with B.
b. S may no longer annul his contract with B.
c. Only B may annul the contract with S on the ground of incapacity of S.
d. S and B may annul the contract at the same time based on the incapacity
of S.
122. Under a contract between D and C, D is obliged to deliver, 10 bags of

detergent soap to C 10 days after the execution of their agreement. On due
date. D delivered to C 10 bags of detergent soap which he mixed with chalk.
a. The contract entered into between D and C is voidable because of the
fraud employed by D.
b. The contract is valid. The fraud employed by D does not affect the validity
of the contract but obliged to pay damages to C.
c. The contract is void because of the fraud employed by D in the
performance of his obligation.
d. The contract is rescissible because of the damages suffered by C.
123. On January 1, 2010, Berroya bought a parcel of land from Salustiano

who was insane. The deed of sale was duly acknowledged before a notary
public. Six months after the sale, Berroya realized that he needed a larger
area on which to construct a commercial building. At about the same time,
Salustiano who had been undergoing psychiatric treatment was declared of
sound mind by his psychiatrist. Should a court action be filed today:
a. Berroya may successfully prosecute a court action to annul the contract on
the ground of Salustiano's insanity.
b. Salustiano may successfully prosecute a court action to annul the contract
on the ground of his insanity.
c. Neither Berroya nor Salustiano may successfully prosecute a court action
to annul the contract.
d. Berroya may successfully prosecute a court action to annul the contract on
the ground of mistake as to the area of the parcel of land.
124. Stanley, 17 years old, suffered a deep cut on his eyebrow during a
basketball game. He requested one of his teammates to call Dr. Ramos
whose clinic was just a stone's throw from the basketball court. Later, Dr.
Ramos sent a bill to Stanley amounting to P500.00 for the services he
rendered. Stanley refused to pay bill claiming that, as a minor, he was not
liable. The charge was a reasonable amount.
a. Stanley is not liable because he is a minor and thus incapable of giving
consent to engage the services of the doctor.
b. Stanley is liable although he is a minor because the contract involved a
necessary.
c. Stanley is liable only when he reaches the age of majority.
d. The teammate is the one liable because it was he. who personally called
the doctor.
125. The following contracts are presented to you:

I. A contract of savings deposit between A and XYZ Bank. The contract was'
executed so that A can present a certificate of bank deposit to the embassy
of foreign country since A is applying for a visa to the said country. A has
really no deposit in the bank.
II. A contract where S and B made it appear that S sold his car to B for
P100,000.00, but S actually borrowed P100,000.00 from B and mortgaged his
car to secure the debt.
In your evaluation of the foregoing contracts;
a. Both contracts are absolutely simulated.
b. Both contracts are relatively simulated.
c. Contract I is absolutely simulated; Contract II is relatively simulated.
d. Contract. I is relatively simulated; Contract II is absolutely simulated.
126. Which of the following contracts involving real property is valid and
enforceable although not in writing?
a. Sale of a piece of land for P50,000.00.
b. Lease of an agricultural lot for a period of 2 years at a monthly rental of
P3,000.00.
c. Mortgage of a commercial lot to secure a loan of P50,000.00
d. Donation and acceptance of a residential lot.
127. Tadeo owned a vacant lot adjacent to a bigger lot where Star Circus
planned to put up a two-week performance as provided in the lease contract
which it executed with Legaspi, the owner of the bigger lot. In expectations,
using his property for a parking lot, Tadeo leveled his to and built a small
shed which cost him P20,000.00, an amount he had yet to pay the
contractor. Later, however, Star Circus cancelled the performance, so Tadeo
brought a court action to recover P20,000.00 from it and Legaspi. Based on
the foregoing information, which of the following is incorrect?
a. The circus contract took effect only between Star Circus and Legaspi, the
parties to the contract of lease.
b. Tadeo can recover damages from Star Circus and Legaspi by reason of
stipulation pour autrui.
c. Tadeo must pay his own contractor the amount of P20,000.00 because
that is the obligation he alone contracted to pay.
d. Tadeo, as an incidental beneficiary, has no rights under the circus
contract.
128. An insurance policy which, in practice, is prepared by an insurance

company and all the insured has to do is to sign thereon if he agrees with its
terms, is an example of:
a. an auto-contract.
b. a contract of adhesion.
c. a commutative contract.
d. a gratuitous contract.
129. Don Henrico was an 85-year-old wheelchair-bound invalid who needed

daily care. He hired Normita, a live-in nurse to take care of him. After one
year into this arrangement, Normita began to pressure Don Henrico into
signing a deed of donation giving Normita all his property in exchange for her
promise never to leave. Normita isolated Don Henrico from all his relatives
and friends and told him that everyone had abandoned him and that only
she cared about him. Convinced that he had been abandoned by his family
and friends, Don Henrico donated all his property to Normita. Both the
donation and the acceptance were made in a public document: What is the
status of the donation?
a. Valid since it was in a public document together with the acceptance.
b. Voidable by reason of the undue influence employed by Normita on Don
Henrico.
c. Voidable by reason of the intimidation employed by Normita on Don
Henrico.
d. Voidable since the old age of Don Henrica prohibited him from thinking
intelligently.
130. D, the only daughter and heir of L, a lawyer, discovered shortly after L's
death that her father's book, Legal Eagle, a rare collection, was missing from
L's library. After going through L's records, D traced the book to S, a law
student. When D informed S that she wanted the book returned, S refused
claiming that I donated the book to him. D, however, protested saying that
the book was merely lent to him by L.
a. D cannot ask for the return of the book although she is the only heir
because L's right over the book was not transmitted to her.
b. D can ask for the return of the book because it should be considered to
have been lent only by L to S, i.e., the contract should be one of
commodatum only.
c. D cannot ask for the return of the book because the same should be
considered as having been donated by L to S.
d. The contract involving the book is void since the intent of L and S. was
ambiguous. Accordingly, D can ask for the return of the book on the ground
of the nullity of the contract.
131. S sold one of his lots to B for P100,000.00. The lot, located beside a
busy street, consisted of 1,200 square meters and was covered by Transfer
Certificate of Title (TCT) No. 123.75. After registering the sale with the
Register of Deeds and the issuance to him by the same office of a new
transfer certificate of title in his name, discovered that the deed of sale and
the new described S's adjoining lot which, although also consisting of 1,200
square meters, was covered by TCT No. 12 and located farther from the
street. B learned that C, secretary of S, typed the wrong description on the
deed of sale. B now approaches you for advice on which course 01 action to
take. What advice will you give to B?
a. Annulment of the contract because he did not consent to the purchase of
the lot covered by TCT No. 12346.
b. Rescission because the erroneous description has caused him damages.
c. Reformation because the deed of sale failed to show the true intention of
the parties to the contract.
d. Declaration of nullity of the contract because it is void ab initio by reason
of the wrong object.

a. A sale made by a guardian in behalf of his ward of the corn harvested from
the ward's corn field at a price of P50,000.00. The corn had a value of
P60,000.00.
b. A sale of a piece of land made by D to defraud C, his creditor. The buyer of
the piece of land was aware of the fraudulent intention of D when D made
the sale.
c. A donation made by D to X of his Guess wristwatch worth P3,000.00 during
a party where D was in a state of drunkenness. X wrote his acceptance of the
donation on a table napkin.
d. A barter of D's ring with C's necklace. D. was publicly known to be insane
but he was in his lucid interval at the time of the exchange.
133. Which of the following statements is true as regards a void contract?

a. A void contract is ratified by the acceptance by a party to the contract of a
benefit under its terms.
b. The right to set up the defense of illegality of a void contract may be
waived if the illegality is not raised within a reasonable time.
c. If there is a novation of a void contract, such novation is valid provided the
new contract is valid.
d. The right to set up the defense of illegality of a void contract does not
prescribe.
134. W, a woman, agreed to live with M, a man, as M's wife without the
benefit of marriage in exchange for M's promise to give a monthly support of
P10,000.00. Both parties are single. After 3 years, M found another woman
and stopped giving support to W.
a. W can demand the continuation of the monthly support from M pursuant
to their agreement.
b. M can demand the return of the support that he had given to W for the
past 3 years.
c. Both M and W will be criminally prosecuted.
d. The agreement between M and W is illegal but the illegality does not
constitute a crime.
135. It is a contract by virtue of the terms of which the parties thereto

promise and obligate themselves to enter into another contract at a future
time; upon the happening of certain events, or the fulfillment of certain
conditions.
a. Contract of adhesion.
b. Contract of option.
c. Contract of sale.
d. Auto-contract
136. O was cleaning the glass window of his building when a large piece of
broken glass fell down directly hitting the roof of a car which was parked
below. C, the owner of the car, was not around. Sensing that he would be
made liable for the damage on the car, O immediately went down and
cleaned the mess. O, seeing that W had witnessed all that happened,
proposed to give W P2,000.00 so that W would not testify in case a court
case is filed. W agreed to the proposal and accepted the money. Based on
the foregoing facts, which of the following statements is incorrect?
a. O's liability, if any, is based on quasi-delict.
b. The agreement between 0 and W is binding on both of them.
c. W may testify in court despite the agreement.
d. The agreement between 0 and W is void for being contrary to public
policy.
137. Salendrez agreed to sell his car to Martinez who just turned 17 years
old, for P100,000.00. Martinez gave a down payment of P10,000.00 of the
price. Shortly before the scheduled delivery of the car, Salendrez received a
higher offer from Tablizo. He thus attempted to annul the sale on the ground
that Martinez was a minor.
a. Salendrez may annul the contract because the minority of Martinez
rendered the contract voidable.
b. Only Martinez may annul the contract on the ground of his incapacity.
c. Martinez may no longer annul the contract because he is deemed to have
ratified it when he gave a down payment at the time of the execution of the
contract of sale.
d. Neither Salendrez nor Martinez may annul the contract because the
contract is partly executed.
138. Torrente, a supplier of typewriters, sent to several customers in various

parts of the country a letter offering to sell out “all his stock of 10 units of
Olympia typewriter" at the discounted price of P3,000.00 each. The offer
stated that the reply must be received by registered mail not later than
September 18. On September 14, Belleza sent a registered letter accepting
the offer. The letter was received by Torrente on September 19. On
September 16, Corpuz sent a telegram accepting the offer. The telegram was
received by Torrente on the same day. Whose acceptance is binding on
Torrente?
a. The acceptance by Belleza because it was mailed first.
b. The acceptance by Corpuz because it was received first by Torrente.
c. Neither acceptance is binding on Torrente.
d. Both the acceptance will be binding on Torrente, with Belleza getting 5
typewriters, and Corpuz getting the other 5.
139. S and B signed a deed (a written contract) of sale of motor vehicle

whereby S sold his car to B for P200,000.00. The parties agreed that S would
deliver the car, and B would pay the price, after two weeks. Before the two-
week period was over, S found another buyer who was willing to pay
P220,000.00 for the car. May S validly withdraw from his contract with B?
a. Yes, because B has not yet paid the price.
b. Yes, because the other buyer was willing to pay more.
c. No, because S was already bound by his contract with B and he cannot
unilaterally withdraw from it.
d. Yes, because S has not yet delivered the car.
140. D obtained a loan from C amounting to P200,000.00. To secure the loan,

D mortgaged his lot. C registered the mortgage with the Register of Deeds.
Later, D sold the lot to X who was not aware that the lot was mortgaged. On
the due date of the loan, C demanded payment but D could not pay.
Accordingly, C decided to foreclose the mortgage on the lot. X, however,
opposed the foreclosure claiming that he was not bound by the mortgage
since he was not a party thereto.
a. X was bound by the mortgage although he was not aware of ii because the
same is registered.
b. X was not bound by the mortgage because he was not a party thereto.
c. Only D and C were bound by the mortgage contract because they were the
only parties thereto.
d. X was not bound by the mortgage because he was not aware of it.
141. On June 1, S offered to sell a specific generator set to B for

P300,000.00. B sent his letter of acceptance to S on June 8. On June 10,
however, B became insane. On June 12, S received B's letter of acceptance.
a. The contract was perfected on June 8 when B sent his letter of acceptance,
at which time he was still sane.
b. The contract was perfected on June 12 when S learned of the acceptance.
c. The contract was not perfected because the insanity of B occurred before
S came to learn of the acceptance of his offer by B.
d. The contract was perfected on June 1 because the acceptance made by B
on June 8 retroacts to the date of the offer.
142. P gave a special power of attorney to A to sell pus nous and lot for
P2,000,000.00. On May 7, A, pursuant to the authority granted to hire by P,
offered to sell the house and lot for P2,000,000.00. On May 7, a pursuant to
the authority granted to him by P, offered to sell the house and lot to B at the
price of P2,000,000.00. B accepted the offer on May 8 by sending a letter of
acceptance to A on such date, which letter of acceptance was received by A
on May 10. On May 11, P revoked A's authority before the latter could inform
him of B's acceptance.
a. The contract was perfected on May 8 when B sent his letter of acceptance.
b. The contract was perfected on May 10 when A received the letter of
acceptance.
c. The contract was not perfected because P, the true owner of the car that
was sold, revoked A's authority before he came to learn of B's acceptance.
d. The contract was perfected on May 7 since the acceptance by B retroacts
to the date of the offer.
143. On May 1, Sonora offered to sell his car for P500,000.00 to Balmores
who was interested in buying the same. In his letter to Balmores, Sonora
stated that he was giving Balmores up to May 31 to decide whether to buy
the car or not. On May 10, Balmores sent to Sonora through his messenger a
letter stating that he was accepting the promise of Sonora. Enclosed in the
envelop was the amount of P2,000.00 as option money. On May 25, Sonora
personally went to Balmores to inform him that he was no longer willing to
sell the car unless the price was increased to P600,000.00 because another
buyer was interested in buying the car for the said amount.
a. Balmores may compel Sonora to sell to him the car for P500,000.00
because they have an option contract which was founded upon a valuable
consideration.
b. Sonora may validly withdraw his offer to Balmores and all that Sonora
needs to do is to inform Balmores of such withdrawal.
c. Sonora may withdraw his offer ever before the lapse of the option period
that he gave to Balmores because that is his right as owner and seller of the
car.
d. Sonora is free to sell the car to another only even before the lapse of the
option period that he gave to Balmores because he stands to gain
P100,000.00 from the transaction.
144. D donated his lot to C because he thought that C was his illegitimate
son. The deed of donation was signed by D and C, and acknowledged by
them before a notary public before a new certificate of title to the lot was
issued by the Register of Deeds. Later, D learned that C was not his son, but
that of another man:
a. D can have the donation annulled on the ground of mistake of identity.
b. D can no longer annul the donation because a new certificate of title has
already been issued.
c. D cannot annul the donation because he freely entered into it.
d. D cannot annul the donation because disregarding it would be unfair to C.
145. A has been for more than 20 years the legal counsel of C. A talked to C
almost every day in the course of giving counsel to C to convince C to donate
his lot to him. A told C that it was only he who knew all of C's cases and was
the only one who could handle them and C's other legal concerns. Because
of the persistence of A in talking him into donating his lot, C finally signed
the deed of donation of the lot in A's favor with all the formalities required by
law.
a. The deed of donation is valid because all the formalities required were
complied with.
b. The deed of donation is voidable on the ground of undue influence.
c. The deed of donation is voidable on the ground of intimidation.
d. The deed of donation is valid because it was the only way by which C
could keep A as his lawyer.
146. The following are the essential elements of a consensual contract,

except:
a. Consent of the contracting parties.
b. Object certain which is the subject matter of the contract.
c. Delivery of the object of the contract.
d. Cause of the contract which must be established.
147. An insurance contract is:

a. an aleatory contract.
b. a contract of adhesion.
c. both (a) and (b).
d. neither (a) nor (b).
148. D borrowed P100,000.00 from C. On due date, C demanded payment

but D refused to pay. In view thereof, C threatened to sue D. Afraid that he
would be sued, D executed a contract transferring his lot to C by way of
dacion en pago. What is the status of the dacion en pago?
a. Void because D did not give his consent freely.
b. Voidable because D gave his consent by reason of the intimidation
employed by C.
c. Valid because there was no intimidation when a party seeks the aid of the
courts to enforce his right.
d. Rescissible because D suffered damages.
149. On March 1, S sent a letter offering the sale of his car for P200 000.00
cash to B. In his letter, S stated that B's acceptance should be sent by
registered mail and must be received by S not later than March 31. On March
20. B accepted the offer of S by sending an e-mail message on the same day
to S whose e-mail address was indicated in the letter. S read the message
the following day, March 21. Was there a perfected contract between S and
B?
a. Yes, on March 1.
b. Yes, on March 20.
c. Yes, on March 21.
d. No, no contract was perfected at all.
150. These statements are presented to you:

I. Option money is part of the purchase price.
II. Earnest money is proof of the perfection of a contract of sale.
In your evaluation of the foregoing statements:
a. Both statements are true.
b. Both statements are false.
c. Only Statement I is true.
d. Only Statement II is true.
151. D gave his US$100.00 bill to C to have it converted into pesos at the
agreed rate of P55.00 to US$1.00. When D received his money in pesos, he
discovered that C gave him P5,700.00 instead of P5,500.00...? No written
agreement was executed by the parties. The only written evidence of the
transaction was the tape dispensed by the adding machine showing the
computation to be P5,500.00 and which was in the possession of D.
a. The contract is voidable. C can have it annulled on the ground of mistake.
b. The contract is valid. D must return the excess of P200.00 to C.
c. The contract is unenforceable since it was not in writing.
d. C can demand that a writing be executed to show the true intention of the
parties.
152. P, the owner of a business, appointed A as his agent to manage it. P

authorized A to borrow money for the business. A himself is the one who
lends the money at the current rate of interest. Thus, in the said contract of
loan, A enters into the contract in his own behalf as lender and represents P
as borrower. The contract of loan in such a case is considered as:
a. an auto-contract.
b. an aleatory contract.
c. a remuneratory contract.
d. a gratuitous contract.
153. D dined at C's restaurant where he was served food amounting to

P475.00. When he was about to pay, he discovered that his wallet was
missing. Not having any money to pay, he called T, his friend, who knew C,
and explained his predicament. T, through his cell phone, then called C and
told the latter to let D leave without incident, and that he would be the one
to pay D's bill 11 D does not or cannot pay.
a. The promise of T can be enforced against him by C because the food sale
was evidenced by the bill issued by C to D.
b. The promise of T can be enforced against him by C. because the food sale
was less than P500.00.
c. The promise of I cannot be enforced against him by C because it was not
in the form required by law to be enforceable.
d. The promise of T can be enforced against him by C because D already
benefited from the contract of sale.
154. S sold his lot consisting of 1,000 square meters to B. However, the deed
of sale signed by the parties showed a total area of 1,200 square meters due
the secretary's mistake. Later, S discovered the mistake. What remedy is
available to either party?
a. Annulment
b. Reformation
c. Rescission
d. Declaration of nullity of the contract
155. On August 1, 2015, Samonte sent a letter to Benavidez. In the letter,

Samonte offered to sell his house and lot located at Green Valley Subdivision
for P1,200,000.00 cash and stated that the acceptance had to be received by
Samonte not later than August 15, 2015. Benavidez sent his acceptance on
August 10, 2015, but due to delay in the mails, Samonte received the letter
of acceptance on August 18, 2015.
a. The contract between Samonte and Benavidez was perfected on August
10, 2015.
b. The contract between Samonte and Benavidez was perfected on August
15, 2015.
c. The contract between Samonte and Benavidez was. perfected on August
18, 2015.
d. No contract was perfected between Samonte and Benavidez.
156. Sermonia Agri-Products, a supplier of “ZZ” fertilizer. offered in writing to

sell to Barbados Farms, 50 bags of the fertilizer at the price of P100.00 per
bag. The offer stated that the price would be good for one week during which
Barbados Farms may decide to accept the offer. Three days later and before
Barbados could make any acceptance, the general market price went up.
Sermonia attempted to revoke the offer by informing Barbados, but Barbados
claimed Sermonia could not do so.
a. Sermonia may withdraw the offer by just informing Barbados since there
has not yet been any acceptance thereof.
b. Sermonia may not withdraw the offer since the one-week period within
which Barbados may decide had not yet lapsed.
c. Sermonia may withdraw the offer only after the expiration of the one-week
period, unless Barbados in the meantime has accepted the offer.
d. Sermonia may withdraw the offer because it would suffer a loss if the sale
was allowed to push through.
157. D obtained a loan of P1,000,000.00 from C. To secure the debt, D

executed deed of mortgage covering two of his lots, Lot A and Lot B, each of
which is in the name of D in the certificate of title. The mortgage of Lot A was
recorded within one week in the Office of the Register of Deeds, but that of
Lot B could not be processed as other documents were being required by the
Register of Deeds. In the meantime, D sold Lot A to X, and Lot B to Y. X knew
nothing on the mortgage of Lot A, but Y was aware of the mortgage of Lot B.
a. Both X and Y are bound by the mortgage on the 101 sold to each of them.
b. Both X and Y will not be bound. In the case of he knew nothing of the
mortgage. In the case of Y, the mortgage was not registered.
c. X is bound by the mortgage of Lot A. Y is not bound by the mortgage of Lot
B.
d. X is not bound by the mortgage of Lot A. Y is bound by the mortgage of
Lot B.
158. B obtained delivery from S of a Nikkon camera and an unlicensed

revolver which he purchased from the latter at the price of P1,500.00 and
P5,000.00, respectively. No written agreement was signed by the parties to
keep the contract a secret.
a. The sale of the camera is unenforceable because it was not in writing,
while that of the revolver is void because the object is illegal.
b. The sale of the camera is valid and enforceable, while that of the revolver
is void.
c. The sale of both the camera and the revolver is valid because the parties
are bound by their secret agreement.
d. The sale of both the camera and the revolver is void because the contract
is indivisible.

a. A contract of sale between S and B, both of legal age, of a computer worth
P20,000.00. No document was signed by the S, the seller, and B, the buyer
who has given a down payment of P4,000.00. S is set to deliver the computer
upon full payment of the price.
b. A contract of lease between S, 16, and B, 25. The lease which was in
writing and signed by both parties, had for its object a drilling equipment,
and had a duration of 3 years. The drilling equipment is now in the
possession of B who has paid the rental of P1,000.00 for the first month to S.
c. A contract of donation of a lot between S, 30, and B 24 The donation and
the acceptance are in a private document. B has since occupied the lot.
d. A 6-month contract for the supply of carabao meat by S to B. Although the
slaughter of carabao is prohibited by law, the contract is now on its third
month and S has made carabao meat deliveries worth P30,000.00.
160. P the owner of a certain business, instructed A, his agent and manager
of the business to buy goods on credit from S. S issued a sales invoice where
A acknowledged receipt of the goods by signing thereon. P called S by phone
and promised to S that he (P) would pay for the goods on due date. S was
not paid on due date. Accordingly, he sued P for the price of the goods. P
raised the defense of unenforceability under the Statute of Frauds claiming
that a representation as to credit must be in writing.
a. The promise is enforceable against P although it was not in writing.
b. The promise is unenforceable against P because it was not in writing.
c. The promise is enforceable against A because it was he who signed the
invoice.
d. The promise may be enforced both against P and A since they are the
debtors in the transaction.
161. The following contracts, all of which are executory and not in writing,
are presented to you for evaluation:
I. Sale of a piece of land for P50,000.00.
II. Sale of a computer for P20,000.00.
III. Lease of a delivery truck at P1,000.00 per month for 2 years.
In your evaluation of the foregoing contracts:
a. I and II are unenforceable.
b. II and III are unenforccable.
c. I and III are unenforceable.
d. All contracts are unenforceable.
162. The following are characteristics of certain contracts:

I. Nominate
II. Real
III. Aleatory
IV. Commutative
A contract for the sale of a sweepstakes ticket is considered as:
a. I and II.
b. I and IV.
c. I and III.
d. III and IV.
163. Which of the following does not apply to a relatively simulated contract?
a. The parties are bound by their real agreement.
b. The parties are not bound at all.
c. The parties are bound by their ostensible agreement if the real agreement
prejudices third persons.
d. The parties are bound by their ostensible agreement if the real agreement
is contrary to law, morals, good customs, public order and public policy.

I. A contract where one of the parties gave his consent in a state of
drunkenness.
II. A contract where one of the parties gave his consent during a hypnotic
spell.
III. A contract where both parties employed fraud to obtain the consent of the
other party.
IV. A contract where one of the parties gave his consent because the other
party threatened to sue him.
In your evaluation of the foregoing contracts, which of the said contracts are
not voidable?
a. I and II.
b. I and III.
c. II and III.
d. III and IV.
165. S placed an advertisement in the Manila Bulletin as follows: "INVITATION

TO BID: For sale, house and lot located at No. 120 Roxas Boulevard, Manila."
Three persons submitted their bids as follows: A, P2 million: B. - P2.5 million;
and C, P3 million. After studying the bids. S awarded the contract to B. C
complained claiming that the contract should have been awarded to him
since was the highest bidder.
a. The award of the contract to B is not valid because he was only the second
highest bidder.
b. The contract should have been awarded to because 3, as the advertiser,
was bound to accent the highest bidder.
c. S was not bound to accept the highest bidder because advertisements for
bidders are mere invitations to make proposals, unless the contrary appears.
d. The contract should have been awarded to c. because his bid was the
most advantageous to S.
166. When a physician who takes improper advantage of his power over the
will of his patient in order to get the latter's consent to a contract between
the two of them, the contract will:
a. likely be voidable because of intimidation.
b. still be valid because the patient is merely returning the favor to his
physician who takes care of his health.
c. likely be voidable because of undue influence.
d. be void because of unlawful service.
167. These statements are presented to you for evaluation:

I. Payment of option money by the buyer reduces the purchase price that he
will pay to the seller in case he accepts the offer.
II. Payment of earnest money will make an oral sale of an immovable
enforceable.
In your evaluation of the said statements:
a. Both are true.
b. I is true; II is false.
c. Both are false.
d. I is false; II is true.
168. Casimiro filed against Delgado a complaint which sought to collect

Delgado's debt of P200,000.00 and attach Delgado's lot located at No. 120
Lepanto Street, Sampaloc, Manila. The court accordingly issued the writ
attachment on the property against Delgado. While the case was pending,
Delgado sold his lot located at No. 9 Scout Albano Street, Quezon City. Torres,
another creditor of Delgado, now questions the sale as fraudulent and seeks
to rescind it.
a. Torres may not question the sale because it was not he but Casimiro who
obtained the writ of attachment against Delgado.
b. Casimiro may not question the sale because it referred to a lot which was
not the object of attachment.
c. Either Torres or Casimiro may question the sale.
d. Neither Casimiro nor Torres may question the sale.
169. The following contracts are presented to you for evaluation:

I. Pledge.
II. Commodatum
III. Sale
IV. Donation of an immovable.
The real contracts among the four contracts enumerated are:
a. I and II.
b. II and III.
c. I and III
d. II and IV.
170: The following cases are presented to you:

I. S informed B that the house S was selling was never infested by termites.
The truth, however, was that S had the house treated for termites 3 months
before. B bought the house believing in the words of B.
II. S sold to B 10 bags of cement which were scheduled for delivery one week
from their agreement. On delivery, S delivered to B 10 bags that contained a
mixture of cement and pulverized rock.
In your evaluation of the above cases, the fraud employed by S rendered
voidable:
a. the contract of sale in Case I only.
b. the contract of sale in both cases.
c. the contract of sale in Case II only.
d. neither of the two contracts.
171. The following statements are presented to you:

I. The illegality of the motive of a party to a contract renders the contract
void.
II. The motive of one party to a contract is always known by the other party.
a. Both are true.
b. Both are false.
c. Only I is true.
d. Only II is true.
172. On March 25, 2014, Orlando and Timoteo entered into a written contract
of lease whereby Orlando as lessor leased the third floor of his building to
Timoteo, lessee. The contract provides, among other terms and conditions,
the following: (a) The lessee shall give a rental deposit of two months
amounting to P40,000.00; and pay an advance rental of one (1) month
amounting to P20,000.00 upon the execution of the contract; (b) The lessor
shall keep the leased premises in tenantable condition throughout the period
of the lease which is from April 1, 2014 to March 31, 2016; (c) At the end of
the lease period, the lessor shall return the rental deposit to the lessee less
any amount of damage that may be caused on the leased premises by the
lessee.
Timoteo, pursuant to the contract, gave both the rental deposit and advance
rental to Orlando upon the execution of the contract. The contract between
Orlando and Timoteo is:
a. bilateral, nominate, onerous and commutative.
b. bilateral, innominate, onerous, and aleatory.
c. unilateral, nominate, gratuitous, and commutative.
d. unilateral, innominate, onerous and commutative.
173. Assume the same facts in No. 172 except that the contract was entered
into orally between Orlando and Timoteo. In such a case, the contract
between the parties is:
a. unenforceable.
b. voidable.
c.rescissible.
d. valid and enforceable.
174. The efficient cause in the obligations in No. 172 is the:

a. lease period of two (2) years.
b. contract of lease between Orlando and Timoteo.
c. obligation of Timoteo to give the rental deposit and the one (1) month
advance rental.
d. obligation of Orlando to keep the leased premises in tenantable condition
throughout the period of the lease, and to return the rental deposit upon the
expiration of the lease.
175. D borrowed P50,000.00 from c. The debt, which is payable within one
year, is secured by a mortgage that D constituted on his lot. The mortgage is
recorded in the Registry of Property. C dies before the due date of the debt
and was not able to collect any amount of his loan receivable from D. He was
survived by S, his only son and heir. D, taking advantage of the situation,
sold the lot to T who was not aware of the mortgage constituted thereon.
a. The mortgage is not binding on T since he was not aware of it at the time
he bought the lot.
b. S, the son of C, has the right to collect the amount of the note from D, and
foreclose the mortgage if D cannot pay.
c. The mortgage is not binding on T since D was in bad faith when he sold
the lot to T.
d. The right to collect the loan was extinguished upon the death of C.
176. B entered into a contract for the purchase of 5 rolls of cloth worth
P20,000.00 from S. The materials which were. to be used by B in the making
of school uniforms, were scheduled for delivery within 7 days. On the
seventh day. s failed to deliver the cloth despite demands from B. As a result,
B could not meet his commitment to his customers and was threatened with
a court suit. S claimed that M from whom he ordered the cloth under a
contract that he (S) and M entered into, did not finish manufacturing the
product as scheduled in accordance with the terms of such contract. In this
case, B may not sue M for damages under the contract between S and M
under which principle of contract?
a. Principle of Liberality of Contract.
b. Principle of Relativity of Contract.
c. Principle of Consensuality of Contract.
d. Principle of Obligatory Force of Contract.

I. A contract of sale involving 100 sacks of rice entered into by G, a guardian,
in behalf of M, his ward. The rice was worth P100,000.00 but was sold by G
for P85,000.00.
II. A contract of sale made by D of his only lot to X in order to defraud C, his
creditor. X was not aware of the fraudulent intention of D when he sold the
lot to him.
III. A contract of sale made by D to X of jewelry which C is trying to recover in
a court case he filed against D. X was not aware that the jewelry was the
subject of litigation between C and D.
In your evaluation of the foregoing contracts:
a. Contracts I and II are rescissible.
b. Contracts I and III are rescissible.
c. Contracts II and III are rescissible.
d. None of the above contracts is rescissible.
178. Which of the following contracts is not à void contract?

a. A contract of sale of an animal suffering from a contagious disease.
b. A purchase of an illegitimate child by one who is the father of the child.
c. A contract of insurance whereby the insured asked another to take his
place during the medica examination.
d. A contract between F, a Filipino and A, an alien, for the purchase of the
right kidney of Flor P200,000.00.
179. An aleatory contract is one:

a. the fulfillment of which depends upon chance.
b. the parties of which are obliged to perform reciprocal prestations.
b. where only one party actually and physically enters into the contract.
d. where delivery of the object is required to be made for its perfection.
180. Zenith Cars Corporation (Zenith) engaged the services of Stronghold
Construction Corporation (Stronghold) for the construction of its showroom.
For this purpose, Stronghold bought construction materials on a 60-day
credit from Durable Materials Corporation (Durable). On due date, Durable
demanded payment from Stronghold but the latter contended that it could
not make any payment because it has not yet collected from Zenith. In this
case:
a. Durable can hold liable Stronghold only.
b. Durable can hold liable Zenith only.
c. Durable can hold liable both Stronghold and Zenith.
d. Durable cannot hold liable neither Stronghold nor Zenith.
200. Erwin applied for an insurance with ABC Insurance Company. The
application required Erwin to undertake a physical examination. However,
since Erwin was suffering from asthma, he requested Edwin, his identical
twin brother who was very healthy, to go through the physical examination
and pretend that he was Erwin. ABC Insurance thus approved the insurance
policy believing that Erwin had a clean bill of health.
a. The fraud employed was dolo causante.
b. The fraud employed was dolo incidente.
c. The fraud committed is fraud in performance.
d. There was no fraud or misrepresentation at all because Edwin is
considered as an agent of Erwin.
201. The insurance policy (contract) in No. 200 is:

a. Valid.
b. Voidable.
c. Rescissible.
d. Void.
202. P met an accident and died while on board a taxi owned by

Roadmasters Taxicab Company. Roadmasters has a common carrier
insurance policy with ABC Insurance Company for the payment of indemnity
to any fare-paying passenger in case of accident. Which of the following
statements is incorrect?
a. The heirs of P can claim the indemnity from ABC Insurance for the death of
P.
b. The heirs cannot claim any indemnity because P was not a party to the
contract of insurance between Roadmasters and ABC Insurance.
c. The provision in the insurance policy for the payment of indemnity is an
example of stipulation pour autrui.
d. The right of P to claim for indemnity was transmitted to his heirs upon his
death.
203. S shipped his goods in the vessel of V. The goods were: destined for
Cebu. When the vessel reached Cebu, V hired T who owned a special
equipment for the unloading of the cargoes that included the goods of S. The
goods of S, however, fell into the sea while being unloaded because of the
negligence of the operator of the equipment.
a. S can go after T.
b. S can only go after V.
c. S can go after both T and V.
d. S cannot go after either T or V.
204. A contract of pledge is perfected upon the:

a. meeting of minds of the parties.
b. delivery of the object of the contract.
c. execution of the written agreement by the parties.
d. acknowledgment by the parties of the instrument evidencing the contract
before a notary public.
205. S, a store owner, sold a gallon of rat poison to B for P1,000.00. B

intended to pour the poison in the fishpond of X his enemy, to kill all the fish
therein. The sale of the rat poison is:
a. valid provided B does not pursue his motive to kill the fish in the fishpond
of X.
b. valid even if B pursues his motive to kill the fish in the fishpond of X.
c. void as it is immaterial whether or not B kills the fish in the fishpond of X
since B's motive is void.
d. void if B pursues his motive to kill the fish in the fishpond of X.
206. The following contracts are voidable, except a contract:

a. between a minor and an insane.
b. where consent was given by a party while in a state of drunkenness.
c. where consent was given by a party while under hypnotic spell.
d. where a party was mistaken as to the substance of the thing object of the
contract.
207. It refers to a contract wherein one party imposes a ready. made form of
contract, which the other may accept or reject, but which the latter cannot
modify.
a. Aleatory contract.
b. Contract of adhesion.
c. Auto-contract.
d. Innominate contract.
208. A provision in a promissory note authorizing the creditor to increase,

decrease or otherwise change from time to time the rate of interest and/or
bank charges without advance notice to the borrower is violative of which
principle of contract?
a. Relativity
b. Mutuality
c. Obligatory force
d. Consensuality.

I. There may be more than two parties to a contract.
II. A party to a contract may be composed of more than one person.
a. Statement I is true; Statement II is false.
b. Statement I is false; Statement II is true.
c. Both statements are true.
d. Both statements are false,
210. At the height of the flood, D saw C and his family bringing their personal
effects to a higher ground; He offered his help which was accepted.
Thereafter, C gave P500,00 to who was not expecting the payment. The
contract between D and C is:
a. onerous.
b. remuneratory.
c. gratuitous.
d. There was no contract at all.
211. Refer to No. 210. The cause is:

a. the payment of P500,00.
b. the benefit received by C.
c. the personal effects of C and his family.
d. There is no cause because there is no contract between D and C.
212. Rescission is different from annulment in that rescission:

a. is a principal action.
b. may be availed of only by the parties whether bound principally or
subsidiarily.
c. is brought to declare the inefficacy inherent in the contract.
d. is based on lesion or damage.

I. A sale by auction is enforceable between the seller. and the buyer although
the memorandum made by the auctioneer on the sale was not signed by the
seller and buyer.
II. Contracts that are unenforceable under the Statute of Frauds are deemed
ratified by the failure to object to the presentation of oral evidence to prove
them.
I. Human hair may validly be the object of a contract of sale.
II. The donation by a mother of a part of her liver to be transplanted to his
son is valid.

I. Innominate contracts, not having any name under the law, are void
because no law or rule governs them.
II. Facio ut des and Do ut facias are innominate contracts.
a. Both are true.
b. Both are false.

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1. Which of the following is not a requisite for the validity of a contract?

2. Before acceptance is conveyed, an offer becomes ineffective upon the:

3. X alleged that Y promised to give X one hectare of land. This is

6. Which of the following contracts is void?

7. Statement No. 1: If the contract is entered into without authority, the

11. Which of the following contract is not rescissible?

15. S sold his car to B because of the intimidation of the latter.

16. Three of the following are rescissible, which is not?

18. Which of the following contracts is not required to appear in a public

19. In order that a stipulation in favor of a third person in a contract would be

21. Which of the following statement is false?

22. Which of the following is presumed not to be legal subrogation?

23. D is indebted to C for P10,000. For the purpose of defrauding C, D sold

24. In order to defraud C, his creditor, D by means of force compelled B to

26. X Company bought out a competitor, Y, with a stipulation that Y should

30. D owes C P500. However, C's right has already prescribed.

31. Which of the following contracts is voidable?

32. X, a former government employee, suffered from severe paranoia and

34. B1 Company bought out a competitor, B2 Corporation, with a stipulation

35. Statement No. 1: In voidable contracts, there is no need to ratify the

38. D forced C to lend him P10,000. The promissory note is in writing.

40. One of the stipulations contained in the contract between M Company

42. When there is concurrence of offer and acceptance, there is:

43. Essential requisites of a contract:

44. Which of the following instruments is not subject to reformation?

46. Which of the following contract is enforceable even if not reduced in

51. A conferment of a direct benefit in a contract between two persons in

52. Statement No. 1: Advertisements for bidders are simply invitations to

54. Contract with a false cause is -

56. Which of the following contract is not valid?

57. D forced C to lend him P10,000. The promissory note is in writing.

59. Statement No. 1: An agreement which, by its terms and conditions, is

63. S, a minor, owns a specific property valued P50,000. B, capacitated, by

67. Statement No. 1: A stipulation in a contract of lease, which provides

68. Which of the following contracts is voidable?

70. In the preceding number, what can C do?

71. Statement No. 1: Ratification of voidable contract is necessary for its

72. Example 1 - S sold to B in a private instrument his land. Later, B wanted

73. In a contract of sale executed by S and B, it appears S sold his motor

74. Valid until annulled unless there has been a ratification

75. In three of the following defective contracts, ratification cleanses the

76. Statement No. 1: A threat to enforce one's claim through competent

77. An incidental element of a contract

78. Statute of Frauds is applicable to:

80. An obligation which cannot be enforced by court action, but which is

81. B called C by telephone to guaranty the debt of D to C. The contract

85. Statement No. 1: The interpretation of obscure words or stipulation in a

86. Which of the following can be considered as a feature of the void

88. These persons are bound by contracts:

90. Contract that is made for a valuable consideration is:

91. Contracts that cannot be sued upon unless ratified:

92. Which of the following contracts is rescissible?

93. The stage of "conception" of a contract is:

94. In a contract as written. D promises to pay C P10,000 on September 15,

95. S makes an offer to B on January 1, 2018. B makes known his acceptance

96 In the preceding number, S is perfectly sane but only an unemancipated

97. Which of the following contracts is required to be in writing to be

98. Rescission of a contract can take place in this case:

99. An agreement in restraint of trade.

104. In the preceding question, which of the following statements is correct?

106. Which of the following is correct?