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Business Law

BL. 1801-Drill 1- Contract

1 .On May 1, 2015, S offered to sell a specific car to B for c. The issue of the contract being voidable is
Ᵽ500,000.00. B sent his letter of acceptance to S on May 8, not relevant because B will not have the
2012. On May 10, 2015, however, S died in a vehicular contract avoidable because it is actually
accident and his secretary received the letter of acceptance favorable to him.
on May 12, 2015 unaware that S had already died. d. It is not B but S or T who can file the action
for annulment.
a. The contract was perfected on May 8, 2015 5. To defraud his creditors, A contracted B by selling
when B sent his letter of acceptance. a land to B. B now seeks to register the land with
b. The contract was perfected on May 12, 2015 the Register of Deeds. X a creditor of A seeks to
when the secretary of S received the letter prevent the registration on the ground that the
of acceptance. contract is rescindable. Despite X’s objection may
c. The contract was not perfected because the the land be registered based on the contract in B’s
offer of S became ineffective when he died. name.
d. The contract was perfected on May 1, 2015 a. The land cannot be registered based on the
because the acceptance made by B on May contract which is rescindable.
8, 2015 retroacts to the date of the offer. b. The land cannot be registered because the
2. Under this theory the contract is perfected at the contract is in fraud of creditor.
moment when the acceptance is declared or made by the c. The land can be registered based on the contract
offeree. is not yet rescinded.
d. The land can be registered because the contract
a. Theory of concession is valid and can be attacked collaterally in a land
b. Theory of cognition registration proceeding.
c. Gennosenshaft theory
d. Theory of manifestation 6. X and Y were to marry in 3 months, meantime, to
e. express his affection, X donated a house and lot
3. Dante borrowed Ᵽ15,000,000.00 from Carlos. to Y, which donation X wrote in a letter to Y. Y
Dante died without having paid his loan wrote back, accepting the donation and took
obligation to Carlos. He left Santos and Marlon his possession of the property. Before the wedding,
heir properties worth Ᵽ12,000,000.00 however, Y suddenly died of heart attack. Can Y’s
heirs get the property?(2011 Bar)
a. Santos and Marlon is liable to Carlos for Ᵽ a. No, since the marriage did not take place.
7,500,000.00 each. b. Yes, since all the requisites of a donation of
b. The estate of Dante is liable to Carlos for an immovable are present.
Ᵽ1,500,000.00 each. c. No, since the donation and its acceptance
c. Santos and Marlon must deliver the are not in a public instrument.
properties worth Ᵽ12,000,000 to Dante and d. Yes, since X freely donated the property to Y
to pay the balance of Ᵽ3,000,000 with their who became its owner.
separate property in solidum. 7. This element exist only when they are expressly
d. Santos and Marlon must deliver the provide by the parties:
properties worth Ᵽ12,000,000 to Carlos. a. Natural elements
4. S offered to sell B his house and lot for b. Accidental elements
Ᵽ10,000,000. In order to pressure B in buying said c. Essential elements
house and lot, T, a very good friend of S, d. Original elements
threatened B with death as a result of which B 8. A solemn or formal contract has the following
accepted the offer of S. It turns out now that the essential elements:
market value of the house and lot is Ᵽ15,000,000. a. Consent of the contracting parties, object
Is the contract of S and B valid? certain and cause or consideration.
b. Consent of the contracting parties, object
a. The contract is valid since it is very clear that certain cause or consideration and delivery
S did not apply the intimidation. of the object.
b. The contract is voidable because the consent c. Consent of the contracting parties, object
given by B is anyway vitiated even if the certain, cause or consideration and
intimidation was employed by a third formalities required by law.
person.

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Business Law
BL. 1801-Drill 1- Contract

d. Consent of the contracting parties, object After only 15 days, S met T who offered to buy the
certain, delivery of the object, and same house and lot for Ᵽ8,000,000. S then
formalities required by law. notified B of the withdrawal of the option and
9. Contracts take effect only between the parties or proceeded to sell T. B files an action for damages
their assigns and heirs, except where the rights against S.
and obligations arising from the contract are not a. B cannot recover damages from C because
transmissible by their nature, by stipulation, or by his option is without consideration as
provision of law. In the latter case, the assigns or something paid or promised.
the heirs are not bound by the contracts, this is b. B can recover damages from S because the
known as the principle of (2011 Bar) latter violated the option given to the
a. Relativity of contracts former.
b. Mutuality of contracts c. B can recover damages from S if B gave S
c. Freedom to stipulate option money which will result in a perfected
d. Obligatory force of contracts contract of sale.
10. The estate of Krispy Kreme who died recently, d. Correct answer not indicated
shows, among other documents/contracts, the
following: 14. A contract of commodatum has the following
I. A certificate from Harvard University essential elements:
granting a scholarship to Krispy. He was a. Consent of the contracting parties, object
subjected to exhausted examinations and certain and cause or consideration.
interviews before he was granted b. Consent of the contracting parties, object
scholarship. He was supposed to start certain, cause or consideration and delivery
studying at Harvard in 3 months’ time. of the object.
II. Articles of partnership of Donut enterprise c. Consent of the contracting parties, object
showing Krispy as a general partner. certain, cause or consideration and
III. A stock certificate of Dunkin Corporation formalities required by law.
showing Krispy as the owner of Ᵽ5,000 d. Consent of the contracting parties, object
shares of stock. certain, delivery of the object, and
IV. A promissory note amounting to Ᵽ100,000 formalities required by law.
executed by maker in favor of Krispy. The 15. Under the following contracts the rights and
note is due after 90 days. Which of the rights obligation are not transmissible except:
of Krispy arising from the said a. Contract of lease
documents/contracts will be transmitted to b. Contract of agency
the heirs? c. Contract of partnership
a. I and II C. III and IV d. Contract of commodatum
b. II and III D. I and IV 16. In a contract, as written, Dave promises to pay
Carlo Ᵽ20,000 on September 15, 2015. The
11. This is a real contract: consideration received by Dave is not stated in
a. Deposit c. Antichresis the contract:
b. Pledge d. All of them a. The contract is valid because the cause is
always presumed to exist.
12. Which of these constitutes fraud? b. The contract is valid so long as it is in writing.
a. The usual exaggeration in trade if the other c. The contract is valid because cause is not
party had an opportunity to know the facts. essential to a contract.
b. An expression of opinion which did not turn d. The contract is void because the cause is not
out to be true if made by an expert and the stated.
other party relied on it. 17. Which of the following is consensual contract:
c. Failure to disclose facts when there is no a. Contract of partnership with a capital
duty to reveal them. contribution of real property amounting to
d. A misrepresentation made in good faith. Ᵽ100,000.
e. Both b and c. b. Donation of personal computer worth
13. S offered to sell his house and lot to B for Ᵽ5,000.
Ᵽ5,000,000 giving to him an option of 60 days c. Stipulation of interest in a contract of loan.
within which to decide whether or not to buy. d. Contract of agency.

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Business Law
BL. 1801-Drill 1- Contract

18. Contracts are effective and binding only between 21. Carlito offered by letter on January 1, 2015 to sell
the parties, their assigns and their heirs. Three of his only Canon printer to Malou for Ᵽ10,000.
the following enumerations are exceptions as Malou received the letter of offer on January 10,
provided by law. Which does not belong to the 2015 and sent a letter of accepted on the same
exception? date. The letter of acceptance was received by
a. Where there is a stipulation in favor of a Carlito on January 20, 2015. However, on January
third party 12, 2015, Malou had already written a letter
b. Where one of the parties to the contract dies revoking the acceptance. The letter of revocation
and thereafter a suit is filed on the basis of was received by Carlito on January 19, 2015.
the contract. a. There is meeting of the mind upon the thing
c. Where the obligations arising from the which is the subject matter of the contract of
contract are not transmissible by their sale and as to the cause which is the price.
nature. b. There is no meeting of the mind because the
d. Where the obligations arising from contract acceptance was already revoked by Malou
are not transmissible by stipulation or by and it was received by Carlito ahead of the
provision of law. letter of acceptance.
19. A wrote a letter to B wherein A to sell a piece of c. There is already meeting of the mind since
land to B for Ᵽ200,000. B signified his desire to there is already acceptance made by Malou
buy the land. In A’s letter, B was given a period of hence, the subsequent revocation is
two (2) months within which to produce the immaterial.
Ᵽ200,000. After 45 days, A told B that price of the d. There is no meeting of the mind because
land is now Ᵽ250,000. Can B compel A to accept there is revocation and therefore it
the Ᵽ200,000 first offered by A and execute the constitute non willingness to be bind in a
deed of sale? contract.
a. Yes, because there was actual meeting of the 22. On July 1, 2015, Serrano offered to sell his only
minds of the parties. Mercedes Benz car for Ᵽ1,000,000.00 to Benetiz
b. No, for B did not signify his acceptance of A’s who was interested in buying the same. In his
offer. letter to Benetiz, Serrano stated that he was
c. Yes, because A is already estopped by his giving Benetiz up to July 31, 2015 to make up his
signed letter. mind whether to buy the car or not. On July 25,
d. Yes, because the period of two (2) months 2015, Serrano personally went to Benetiz to
has not expired. inform him that he was no longer willing to sell
20. Which is the correct order of application of the the car unless the price was increased to
rules in connection with solution of problems Ᵽ1,400,000.00 because another buyer was
involving innominate contracts? interested in buying the car for the said amount
a. The provisions of the Civil Code; then of Ᵽ1,400,000.00 .
stipulation of the parties, then the provisions 23. In written contract the true intention of the
of the most analogous nominate contract parties was not reflected therein through the
and lastly custom or usage of the place. fraud committed by one of them, which fraud
b. Custom or usage of the place; then prevented a meeting of the minds. The applicable
stipulation of the parties; then the remedy would be-
provisions of Civil Code and lastly provision a. Reformation of the contract
of the most analogous nominate contract. b. Resolution of the obligation
c. The stipulation of the parties, then the c. Annulment of the contract
provisions of the Civil Code; then the d. A petition for the declaration of nullity of
provisions of the most analogous nominate the contract.
contract and lastly the custom or usage of
the place.
d. The provisions of the most analogous
nominate contract; then the stipulation of
the parties; then the provisions of the Civil
Code and lastly the custom or usage of the
place.

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