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Quiz in Contracts PDF
Quiz in Contracts PDF
___1. When bilateral contracts are vitiated with vices of consent, they are rendered
a. Rescissible b. Void c. Unenforceable d. Voidable
___2. Contracts take effect only between the parties or their assigns and heirs, except where the rights and obligations
arising from the contract are not transmissible by their nature, by stipulation, or by provision of law. In the latter case, the
assigns or the heirs are not bound by the contracts. This is known as the principle of
a. Relativity of Contracts c. Mutuality of contracts
b. Freedom to stipulate d. Obligatory force of contracts
___3. The following contracts, except one, are void ab initio. Which is the exception?
a. That whose object is outside the commerce of men.
b. That whose object did not exist at the time of the transaction.
c. That which contemplates an impossible service.
d. That which is undertaken in fraud of creditors.
___4. S, minor, owns a specific property valued at P50,000. B, capacitated, by means of fraud induced S to sell his
property to him for P30,000 which S did so. The contract is in writing. Which is correct?
a. The contract is valid and binding from the start.
b. The contract remains unenforceable because it falls under the Statute of Frauds.
c. The contract is rescissible because the ward suffered lesion by more than ¼ the value.
d. The contract is voidable and B can ask for annulment within the period prescribed by law.
___5. This is not a characteristic of a void or inexistent contract.
a. The right to raise a defense of illegality cannot be waived.
b. The action or defense for declaration of the nullity or inexistence of the contract does not prescribe.
c. It is not subject to ratification.
d. Defense of illegality of the contract is available to third persons whose interest are not directly affected.
___6. Reformation is not the proper remedy if
a. The mutual mistake of the parties causes the failure of the instruments to disclose their real agreement.
b. One party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does
not show their true intention.
c. There was mistake, fraud, inequitable conduct or accident which prevented the meeting of the minds of the
contracting parties.
d. The true intention of the contracting parties is not expressed in the instrument purporting to embody the
agreement by mistake, fraud, inequitable conduct or accident.
___7. The following contracts are defective. Which one is unenforceable?
a. Contract of sale by which a guardian acquired the property of the ward without the approval of the court.
b. Contract of sale by which a city mayor acquires a portion of the city part pursuant to a city ordinance enacted
by City Council.
c. Contracts whose object is outside the commerce of man.
d. Those were both parties are incapable of giving consent to a contract.
___8. Which of the following is not a requisite of fraud?
a. There must be misrepresentation or concealment.
b. The fraud must be serious.
c. A party is induced by fraud to enter into contract.
d. The fraud is employed by both parties upon each other.
___9. Which of the following is not correct in rescission?
a. Cannot be availed when the party who has been damaged has other legal remedy.
b. The person who seeks rescission must be able to return what he ought to return.
c. The object of the contract is not in the possession of third persons who have acquired it in good faith.
d. Can be demanded by any of the contracting parties.
___10. A contract in which a person literally contracts with himself is
a. Adhesion contract b. Auto contract c. Accessory contract d. Unilateral contract
DLSL CPA Board Operation – Business Law
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___11. The statement “Contracts shall be obligatory in whatever form they have been entered into provided all the
requisites for their validity are present” refers to
a. Real contract b. Consensual contract c. Formal contracts d. Solemn contracts
___12.The pre-nuptial agreement of H and W, husband and wife, provides for complete separation of property. Later, H,
with violence and intimidation forced W to sell to him (H), W’s pieces of jewelry. The sale is
a. Rescissible, if W suffered a lesion of more than ¼ of the value of the property.
b. Voidable, because the consent of W is vitiated.
c. Unenforceable, if the value is at least P500.
d. Void, because husband and wife are not allowed to sell property to each other.
___13. A remedy in equity by means of which a written instrument is made or construed so as to express or conform to
the real intention of the parties when some error or mistake has been committed.
a. Rescission b. Annulment c. Reformation d. Consideration
___14. This is an accessory contract.
a. Sales b. Mutuum c. Commodatum d. Mortgage
___15. These are real contracts, except
a. Commodatum b. Deposit c. Pledge d. Chattel mortgage
___16. B, a minor, bought some kilos of rice and other necessaries from S, a capacitated person. The contract is
a. Rescissible b. Unenforceable c. Voidable d. Valid
___17. X entered into a written contract with Y for the sale of his car at the price of P210,000. Subsequently, F told X that
the purchase price is very low as it can command a price of at least P250,000. X wanted to increase the purchase price of
his car to P250,000. This cannot be done by X because of what principle of contract?
a. Freedom of contract b. Mutuality of contract c. Relativity of contract d. Consensuality of contract
___18. A brought a car from B, a minor, for P100,000. One week later, A discovered that B was a minor at the time of sale
so he filed a complaint in court to annul the sale. Will the action prosper?
a. Yes, B being a minor is incapacitated to enter into a contract.
b. No, the right to annul the sale is given to B.
c. Yes, B cannot file the action to annul the sale because he is a minor.
d. No, unless there is lesion of more than ¼ of the value of the property.
___19. I. A void contract produces no effect whereas rescissible contract is valid until annulled.
II. The action or defense for the declaration of the inexistence of a void contract does not prescribe.
a. True, True b. False, False c. False, True d. True, False
___20. I. An oral sale of land made by its owner is unenforceable if executor.
II. Sale of land made by agent without written authority from the owner thereof if void.
a. True, True b. False, False c. False, True d. True, False
___21. I. A contract as a general rule must be written to have force and effect as a valid agreement.
II. A formal or solemn contract is perfected by the delivery of the object of contract.
a. False, True b. True, True c. False, False d. True, False
___22. I. A contract entered into by a minor is void.
II. A contract where the amount involved exceeds P500 needs to be in writing to be valid.
a. False, False b. True, True c. False, True d. True, False
___23. A defective contract where damage or lesion is essential is
a. Rescissible b. Voidable c. Unenforceable d. Void
___24. A defective contract because it is entered into in the name of another without or in excess of authority or it is verbal
but required by statute of fraud to be in writing
a. Unenforceable b. Voidable c. Void d. Rescissible
___25. I. In reformation of instruments, it is necessary that there is meeting of minds of the parties to the contract,
otherwise annulment of the contract shall be the remedy if fraud, accident, mistake or inequitable conduct prevented the
meeting of minds.
II. In the interpretation of contracts, doubts on the incidental circumstances of onerous contracts shall be resolved
in favor of greatest reciprocity of interest and if gratuitous, least transmission of rights and interest.
a. True, True b. False, False c. False, True d. True, False
___26. S sold to B his land valued at P1,000,000 only for the price of P700,000, thus resulting to inadequate price. The
sale is
a. Rescissible b. Voidable c. Unenforceable d. Valid and binding
___27. It refers to the stage of the contract life where the parties have performed their respective obligations and contract
is terminated.
a. Preparation b. Conception c. Perfection d. Consummation
___28. An absolutely simulated or fictitious contract is
a. Void b. Voidable c. Rescissible d. Unenforceable