aol cTs qRACTS - DIAGNOSTIC EXERCISES con’ MULTIPLE CHOICE. Select the best answer by writing 1 . 18 er of your choice. & ting of minds between two persons whereby one 1» A ae nimself with respect to the other to give something ar render some service is known as: ¢, __ obligation. consent. contract. c . a. stipulation. ‘The stages of a contract according to the order of their occurrence are: birth, conception and consummation. a. b. conception, consummation and birth. So conception, birth arid consummation. d. consummation, conception and birth. 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. 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. « consent of the contracting parties, object certain, cates or consideration and formalities required by w. ' 4. consent of the contracting parties, object certain delivery of the object, and formalities required ty. law,252 PONTE, the following essential elements A real contract netthe contracting parties, Obie nd onde or consideration. : ent of the contracting parties, Object «ce b. eae or consideration and delivery ore ‘e _ Soriscat of the contracting Parties, objet eee C cause or consideration and formalities Tequi law. by t of the contracting ies, ob; | & Gelivery of the object, ang formalieg 8, law. dh A solemn or formal contract has the following elements: i tia a. consent of the contracting Parties, Object and cause or Consideration, b. consent of the contracting Parties, Object cause or consideration, and delivery of the bjen | c consent of the contractin Parties, object O° cause or consideration and formalities Tequired law. 4 d. consent of the contracting Parties, Object cers: : delivery of the object, and fo iti Certain, law. ee Teatired by Elements that @ccompany certain Contracts Unless. ge aside or suppressed by the parties are known as; a. natural elements, b. accidental elements, c. essential elements, d. original elements. The warranty against hidden defects in a contract of sit 18 an example a. natural element. b. accidental element. Si Original element. + d. Stipulated element, ‘ artes! They refer to Particular stipulations of the p contract. a. Accidental elements Cecontracts 253 Natural elements Inherent elements oi Essential elements one of the following is 10. contract. Terms of payment. Rate of interest. Place of delivery, Warranty against eviction. @ natural element of & sal les Boop Acontract that can stand by itself is known as: ie accessory contract, : b principal contract. i commutative contract, d. gratuitous contract. 12. Acontract that does not have any special name \ law is known as: inder the a. nominate contract. db, innominate contract. ‘& special contract. d, . nominal contract. 13, A contract where both parties are Tequired to do or give something is known as a: : a. bilateral contract. b. unilateral contract. c gratuitous contract. a. commutative. contract. 4. A contract where the parties contemplate “a real fulfillment, hence, equivalent values are given is known as: aw commutative contract. “b gratuitous contract. c onerous contract. d. aleatury contract. The contracting parties may establish such stipulater: clauses, terms and conditions as they law morals, convenient provided they are not contrary to law,254 16. 17. 18, 19, CONTRACTS ic order or public policy, 3, public mal oanne principle of: i aa liberty ‘of contract. t mutuality of contract. = ity of contract. i obligatory force of contract. st bind both contracti: : : ccontrarnpliance cannot be left to the wires it This is known as the principle of: One of *. Smutuality of coritract. relativity of contract. consensuality of contract. freedom to contract. aogp Contracts take effect only between the contracting pars, their assigns and heirs, except in cases where obligations and rights arising from. the contract are transmissible by their nature, or by stipulation provision of law. This principle, of contract is * a relativity of contract. known as b. mutuality of contract. c -obligatory force of contract. d. liberty of contract. D borrowed P500,000.00 frora C. D died without having paid his loan obligation to C. He left S, his son and heir, properties worth P400,000:00. S is liable to C for P500,000.00. S is liable to C for P400,000.00. S is liable to C for P100,000.00. § is not liable at all because he should not & made to shoulder the obligation of his father. Boop _ A contract may be enforced by or against a third pers” except: a. in the case of stipulation pour autrui sate bi b. when a third teen frsduces ‘another to violate ” contract. creditor, ©: - _ in’ease of contracts intended to defraud 2 er d, “when.the benefit to the third person ‘incidental.4 TRACTS 255 ine principle that contracts are Perfected by mere cons ye Mnown as: ent consistency of contract, consensuality of contract, consummation of contract, mutuality of contract, * a. b. c d. igations arising from Contracts have tl ah. eed the contracting Parties and shows as : with in good faith. From Petfection, the parties ne eee not only to the fulfillment of what has been cxpreae stipulated Dut also to all the consequenees whic, according to their nature, may be in keeping with sa faith, usage and law. This is known as the Principle ae a, consummation of contract. : b. consensuality of contract. labore f ‘ c obliga Ty force of contract and compliance in good d. mutuality of contract, 22. One of the following is not a real contract, a Pledge db. Commodatum c: Deposit d. Sale 23. D borrowed P100,000.00 from Cc The obligation is secured by a mortgage on D’s land and building. .c 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 aa foreclose the mortgage although the land a! building are now owned by X. Yt Ccan lle from D, but if D cannot Be nes of foreclose the mortgage because X was ili256 24. 25. 26. , CONTRAGY the existence of the mortgage at the time he boy, d building. the Lepeory from D. He can Only go c C can which was given as security the © cannot foreclose the mortgage Decause < . not a party thereto. a i ifestation of the meeting of the offe, | It . Se oe ubod the thing and the cause Which tte coats the contract. : bi} a. Consideration e a b. Contract c Consent da. Cause On June 1, 2015, § offered to sel} his only Car to P100,000.00. B accepted the offer ili Big Oe milling his je acceptance on June 10, 2015. On June 12, aig revoked his previous acceptance and mai Tevocation on the. Mailed his Same date. g§ Teceived the ent acceptance on June 14, 2015 ang the letter of TeVocation on June 15, 2015, a ‘The contract was Perfected on June 14, 2015 when S received-B’s letter of acceptance, * Was not perfected, becau; the acceptan ived, the longer of one mind. The contract was perfected on June 10, 2015 when B sent his letter of acceptance, d. € perfection of the cont 2015 when the Offer was On May 1, 2015, Offered to 500,000.00" B sent his letter 8, 2015. On May 10, Vehicular accident and his acceptance o; died. b. tract retroacts fo June |, made. Sell a specific tar to B it T of acceptance to s co 2015, however, S died a Secretary received the lette already n May 12, 2015 unaware that S had a. The contract was Sent his letter l contract the Secretary B shen 'S perfected on May 8, 2015 wi of acceptance. 5 whet was perfection ‘on May 12, 2 of S received the letter of a ‘ ed7. 2B. -for P400,000.00 cash. 287 The contract was not Perfe S became ineffective rhe ted, (ectUse thy When hy © Offey 4. The contract was Perfected’ = ne because the acceptance ade brn May 1, 201. " retroacts to the date of the offer” OP May 8, 2018 of the following instances w; c ees will ineffective before acceptance is conveyed. “Wien an offer not? as ; neh one wi - Civil interdiction of either Party. b. Insolvency of either Party, : c Insanity of either Party. a Intoxication of either Party, $ offers to sell his car to B for P125, accepts the offer but is willi perfected ne P125,000.00. Saat the price of b. The contract was Perfected at ‘e P120,000.00. the price of c. The contract was Perfected at the fice P122,500.00, the average price of the offer af, ie acceptance. d. The contract was not Perfected because the acceptance by B was qualified and it constituted a counter-offer. P appointed A as his agent to sell P’s only Honda Civic car 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. aig a. The contract was perfected on November 8, when B sent his letter of acceptance. " The contract was perfected on November 9, 2015 when A received the letter of ecorpianee. c The contract was perfected on ern an when A notified P, the true owner 0 B had accepted the offer. b 10, 2015 that258 31. COnnR, ntract was perfected on Novem © Goon tne Seceptance by B retroacts t. the ‘eos the offer. me % » 2015, Serrano offered to sell his 9; Deu ou be P1,000,000.00 to Benites wpi® Chly Mer in buying the same. © Was ; In his letter ie itera stated that he was giving Benitez uy tea, P to July 3 Seng! make up his mind whether to buy the car or.) 201s, July -25, 2015, Serrano Personally went inform him that he was no te “ longer Willing te: Benita, unless the price was increased t © F1,400,009 ou! the her buyer was interested buyi said amount of P1,400,000.00, Te car gate a. Benitez may compet Serrano to sel, to him for P1,000,000.00, the b. Trano may validly withdraw hi, because the *o, nic S Offer ¢, i ption. was Not: fo * Betite consideration, \ Pon Serrano may not withdraw his Offer unt; lapse of the Option. Period that he gave ae Bena d. The increase in Price made by valid because it was m: i Rockman and Company Publisheg the newspapers which y z Nettisement in S as follows “INVITATION 19 BID: Construction ‘of the com: ‘ware! 123 Luzon Stree ~ ‘tree companies submitted 2 ABC Company, with @ bid price of P4,500,000.00; DEF Company, P4,750,000.00; snd Gi mpany, P5,000,000.00, Afte ‘er Considering the financl Capability, Teputation and exy ind and i ders, the ‘perience of the bi on quality of materials to be used and na DEF Rockman and Company accepted the bi Company. i nov > ABC Company, the lowest or i questions the award made by Rockman Compan ‘ pany which Submitted a higher bid. idable beau? The award to DEF Company is voi was only the second lowest bidder. ne |epxtmacs 259 ABC Company should be th inni: bidd b. having submitted the lowest bide peed _ The award to DEF Company is id becay Rockman Company was not Sout asd me lowest bidder. cee The award to DEF Company is voi * nd to. DE id by reason of Rockman’s violation of the terms of invitation to bid. the invitation ¢ of the following is not incapable of giving hi on rie cn giving his consent. b Deaf-mutes who do not know how to write, 6 Deaf-mutes who know how to read. - a Unemancipated minors, Acontract entered into by an incapacitated person is: a void. b yoidable. CG rescissible. d. unenforceable. Contracts entered into in a state of drunkenness or during hypnotic spell are: a. valid. b.) —_-voidable. & rescissible. a void. Acontract entered into by an insane person during a lucid interval is: a, valid, b. voidable. c. « rescissible. a. void. Aside from fraud and undue influence, the following are the vices of consent, except: a. violence. b. intimidation. . mistake. dealer’s talk.260 37, 39. - A contract where a party was compelled to assié? (ea, ee CONTRACTg Mistake in three of the following will make a contrac voidable. Which one will not? it a. Mistake ast the substance of the thing which ig the object of the contract. b. Mistake as to the principal conditions. whi, principally moved one or both parties to enter ine the contract. . : E c Mistake as to the identity or qualifications of one parties, which identity or qualifications fa bee the ‘puncipal cause of the contract, ve d. Simple mistake of account. It involves the employment of serioUs or irresistible foro, to obtain consent. a. Intimidation. b. Threat. c Violence. dv Moral coercion. 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. iG; Intimidation. d. Mistake. One of the following contracts is not ‘itiated by intimidation or Holenee, and hence valid. & . A contract of sale which was signed by party because his arm was being twistéd by a third person. A contract of sale which was entered into becaus? the other party was pointing a gun at his wife. his property to the other to pay a just debt beca¥* pay a just debt the latter threatened to sue him in court if he 49 hot pay his debt. igene 42. 43, 261 A contract of donatio; d. i Of @ pare party maned because the per! Of lang Which a burn his house, Pl Teatened to exists when a Person takes j power over the will of ano, EeePer 8dvantage of hig sonable freedom of choice, Priving ‘th e latter of a z Intimidation tb Duress c Threat @ Undue influence Fraud d exists in three of the following. exception? a. When through the insidious machinations of one of the Contracting antes 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. When the misrepresentation ‘refers to the usual exaggerations in trade, ‘and the other party had an opportunity to know the facts. Which is the 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 easbellishiet emerald, and Abulencia, believing that Banzon' oe watch was made of pure gold, then entered ea A oak whereby they exchanged their respective ate a nly later, Banzon discovered that the ring wa‘ : i i ‘SS. P ce of - o Wesemnect may be annulled a instan Banzon since he discovered a rathe instance of The contract may be annw employed fraud. Abulencia since Banzon also b,404 45. 47. CONTRACTS Ss The contract is void because of the bad faith o both parties; hence, it shall not produce any 4 Neith ulment since po; : Neither party may ask for ann' Ce both are guilty of fraud. The contract, therefore, i valid. An absolutely simulated contract is: void. b. voidable. Cc valid. d. unenforceable. One of the following statements does not’ pertain to , 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, 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. : One of the following is not a-requisite of the object of° contract. a. It must be within the commerce of men. b. _If it is a right, it must be intransmissible. good c. It must not be contrary to law, morals; customs, public order or public policy. -f SL 49. gst 263 It must be determi “ r ‘inate ag to j i being made determinate wit’ Kind or f dete wit capabl parties entering into a ney Meat the need ot at ent, 4 gand B orally entered into a Contra one-year production of eggs in his py eTEeY 8 sold hig 50,000.00 which amount B im pout " to B f g, The contract between § ang Btely Bave in cash to a . Void because the object was time ‘of execution of the co; b. valid because futu e é rescissible because B -wil} like qi eh damage j the eggs do not come into existent ei a unenforceable because the contract waiting was not in A died leaving properties estimated at P1, : ,000, his sons $ and T. Subsequently, $ sold one-half ey inheritance to X for P300,000,00, a stil to be delivered. though his share was a. The contract is valid since i i i existing inheritance. whe tahesitance fan 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. Acontract whose cause is the promise of a thing or service by the other party is: an onerous contract. a gratuitous contract. a lucrative contract. a remuneratory contract. 29 FB), A contract whose cause is the liberality of the benefactor is: of pure a a gratuitous contract or contract beneficence. b. & remuneratory contract. & an aleatory contract.52, 53. 54. CONTRACTS, d. an onerous contract. § sold his only car for P100,000.00 to B. Unknown to g B bought the car from him eo that he could use the gay: in a bank robbery. What is the status of the sale Of the car by S to BP : : Ae The sale is void because the motive of B is illega (6. The sale is valid because the illegality of the Motive ‘ of the parties to the contract does not have any effect on its validity. : ey The sale is voidable because of the failure of B 4, 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, One of the ote is not a requisite of cause in is 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. 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. The defective contracts arranged according to the degree their defectiveness from the least defective to the m0 defective are: 2 : a. voidable, rescissible, unenforceable, and vid contracts.yes aside for egy; b. they are valid until rescinded pty é the action to rescind them Prescribe _ ‘Ss. a. fie action to rescind them are Not avail Persons event ‘if their intere: ait ‘. ae sts are directly ible contracts The following contracts are a. Those entered into b i wards whom they represent sues ene ae than one-fourth of the value of the things chich are the object of the contract. aires db. 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. G 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. rescissible, except: G, the guardian of M, a minor, sold the fish harvested from the fishpénd of M for P7,400.00. The fish, had a value of P10,000.00: stl ty The sale is rescissible because M suffered le: : h sold. more than one-fourth of the ve ee b. The sale is voidable because M a md the fish ©. ‘The sale is unenforceable beca! without approval of the courts.ao CONTRACTs o The sale is Void because the object is outside the Commerce of men. so, . “The following are the requisites of a rescissible Payment, except: a the debt is already due. b. the debtor is insolvent. & the debtor pays the debt. a. the payment is not yet due. Rescission of a contract will prosper in one of the following cases. Which is it? - “a. When there: are other legal ee to Obtain : reparation of the damages caused. : b. When he who demands rescission cannot Tetum whatever he may be obliged to restore. pe c When the object of the contract is. in 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 ‘followir.g creditors: xX, P50,000.00; y, P60,000.00; and Z, P90,000.00. He has assets valued at P400,000.00; Subsequently, D donai » among hig assets, a parcel of land valued at P250,000.000 to . The donation and acceptance were made in. @ public instrument. The donation of the land made by D to Cis: a rescissible, because it was Presumed to have been made in fraud of creditors, - b. unenforceable, becau: ‘se D was: not authorized by his creditors, ; ce. void, because the donation and acceptance should be registered, d. voidable, of his pro, because D does not have the free disposal : perty, . 62. C filed a complaint-in court debt am ine 267 of the eale made by D to x and on to rescind the sale. Now files an ‘The right to rescind the sale i to Z because it was he who free eel a and he has still to file a claim to Collect mh ann ale ‘The right to rescind the sale is exclusively feet to C because it was he who obtained @ fron judgment and he has not yet collected D's be Both C and Z have a right to rescind the eale " the sale is presumed in fraud of creditors having a. Neither C nor Z has aright to rescind the sale. R; the representative of A, an absentee, sold i t value of 30,000.00 and the paley with a sents 50,000.00, 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 om the foregoing facts, which of the following ents 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 tecover the damages he suffered c Amay seek rescission’of the sale of part of the corn and part of the rice to the extent of the damages he sustained. 4. A may seek the rescission of the total sale to recover the damages he suffered. a & The following contracts are voidable, except: : a contracts entered into during a’ state 0! drunkenness or hypnotic spell. b contracts entcred into during 4 hucid interval. se oe contracts where ‘one of the parties is incapa’ giving consent. vise 4. contracts where the consent of one party saree by violence, intimidation, mistake, frau influence. :268 65, 66. 67. 68. CONTRACTS The actioy years, Man annulment must be brought within foy, Teckoning of the following is false with respect to the a. pe Or the beginning of the prescriptive period? ‘N_cases of intimidation, violence and undye influence, the period begins from the time the b defect in the consent ceases. . In case of fraud, the period begins to run from the discovery thereof. i In case of mistake, the period begins to run from the time it was committed. da. In cases of contracts entered into by minors 9, other incapacitated persons, the period runs from the time guardianship ceases. 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. i 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. The incapacitated person when he attains capacity. The guardian, during the ward’s incapacity. The party who is capable of entering into 4 contract. BPs 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amc 70. 1. 269 t will have something to Use j . new office. Neither B nor his pyct 8°ing je with the Land Transportation a S can file an action to shina) “because he was mi x £0 and fr < FOm hi 98 registereq the : Staken in geo’ oe Made he realized he badly needeg ling the car Whe, b S can ask the court to ar” 7 annul the was @ minor when the Contract of sate because B into and it has not yet been Tecorded with entered Transportation Office, - é Only B, when he att, guardian, while B is still a action to annul the Contract. a The minority of Bh; the contract since the parties contract of sale freely. are ‘ains the age of Majority, or his minor, can bring an 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. da. those where the consent of a violence, intimidation, influence. party is vitiated by mistake, fraud or’ undue 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 a eae e An agreement made in consideration of mi other than mutual promise to marry.» i a An agreement for the leasing for a longer peri than one year of a personal property. The Statute of Drauds applies only to: a wholly executed contracts.270 72. CONTRACTS b. contracts wholly or partially executed on the part of the debtor. Ss contracts wholly or partially executed on the part of the creditor, a. wholly executory contracts. Severino, orally sold a one-square meter lot for P475.00 to Benedicto, chairman of Barangay MapayeP™ who was officially authorized in @ resolution to ook for and bi the barangay would con: ct. a ty, ee ee si ce Benedicto did not have barangay marker. sine Ic 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 enfo: rceable because Benedicto was duly authorized to buy the lot through a resolution which is in writing. ee The sale of the lot is void not being in a ‘public instrument. d. ‘The sale is unenforceable since the sale of real perty must be in writing. regardless of, the price to be enforceable. 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 starring 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 ‘tos for the shooting of the movie but Claudine Santos refused to honor © agreement saying that it was not enforceable, not being i? writing.1" 1. 271 Mother Lilac cannot enforce tl % Claudine Santos because it wae eqcomtract Against 5 Mother Lilac can enforce the ond inte orally, Claudine Santos because Clayq on '@ct against accepted benefits under the ms Santos had Claudine Santos may just because it was made in che, i tender. ae Claudine Santos is 4 Sa not bound und agreement with Mother Lila hea sign any writing. © Because she did not wturn the payment ich is not legal was driving on his way to Manil: : . a he-suffered a busted tire. Not ela ee provmice he went to a nearby car spare parts store to Mare naa tire. However, he did not have sufficient money with hin so he phoned G, his friend, who happened to know Ss, the store owner. G then instructed D to give to S the telephone through which G told S “Dont worry. If D cannot pay, just charge me.” [) was thus able to buy a new tire for P6,000.00 for which -S issued D a 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. « 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. 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 $ of his bicycle, and demanded that S give her the amount He received. §, thus gave the proceeds of the sale 8, i mother who spent the same for the fam ve ail expenses, F, the father of B, also learned about Purchase by B of the bicycle when he saw it Pi their door and began using it almost daily since272 CONTRACTS it. Based on the foregoing facts, what is now the status op the a. b. c. d. sale entered into between S and B? Unenforceable because both parties Were incapacitated to enter into the contract. Unenforceable because the sale was Not in Writing Validated from inception because — of the subsequent acts of the parent of the parties, Voidable because while B was only 16 years old, g was nearing the age of majority which is 18 years 76. — The following contracts are void or inexistent, except: a. es =) 1a b. .c. those whose cause, object or purpose is contrary’ t law, morals, good customs, public order or pubjie “policy. t thee which are absolutely simulated or fictitious, those whose cause or object did_not exist at the time of the transaction. : those where one of the parties employed fraud to obtain the consent of the other, The following contracts are void or inexistent, except: those whose object is outside the commerce of men. those which contemplate an impossible service. those where the intention of the parties relative to the principal object of the contract cannot be ascertained. 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. b. c the right to set up the defense of illegality cannot be waived. : ‘ P the action or defense for the declaration of the inexistence of a contract does not prescribe. f a void contract can be ratified by the acceptance © benefits under it by one or both of the parties. ble the defense of illegality of contracts is not availal ‘h to third persons whose interests are not directly affected.T ears “ | a 273 8. 8. illegal contract between the the parti the parties j ese ee poduesusey in pari ‘deb criminal : follow ie8* “the parties shall have no right effect; dts & gach other. Of action MePt: poth parties shall be criminal} nst the effects and instruments prosecuted, c confiscated in favor of the governm © crime wil) be 4 the parties may recover what they ee . ‘ not illegal in itself. AVE given if it is the illegal contract between the parties ; _ offense but only one party ig guilty, such a @ criminal shall produce the following effects, except: gal contract e the guilty party will be criminally x Prosecuted. : neither party may compel the Ds his undertaking. eee comply with the instruments shall be confi: i c ‘iscate government. ted in favor of the a the innocent party cannot recover what he has given. 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. 4, the innocent party cannot demand the return of what he has given. The following contracts are required to appear in a public document for the convenience of the pertice #2 pacer may be registered into the proper recording office, exe"? * & contracts which have for their object the creation of real rights over immovable property: . the acceptance of an inheritance. ® the power to administer property. ceeding from 2 4. the cession of actions or rights Pr tial ic document.274 83. 84. 85. 86. Reformatio: except: a. b. c. a. Reformation cases, a. CONTRACTS n of instruments has the following requisites there must be a meeting of minds of the parties to s one intention of the parties is not expressed ip te ‘one of the instrument 1 express the tr intention’ of the oe i ent: 2 fraud i i conduct te Se onict must be in @ public instrument, of an instrument is available in the follow; ee mutual mistake of the parties causes the failure of the instrument’ to disclose thei, ‘ ent. ' eno one party was mistaken and the other acted fraudulently or inequitably. in such ee that the instrument does not show their. true intention. : : when a party was mistaken and the other knew or believed that the instrument did not state their real agreement. : when one of the parties has brought an action to enforce the contract. action Reformation is not available in the following cases, except: a. b. ce. d. b, simple donations inter vivos wherein no condition is imposed. wills. when the real agreement is void. 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, : i Asa rule, a, contract of sale is perfected; upon compliance with the requirements of the law as to form. upon delivery of the object of the contract.gxtRAcrs st Antention of S in selling the car. A 275 upon the meeting of the mi c i inds the object of the contract Nn the th: : 4. upon demand. 8nd upon the pang Which is ith the intention of raising mon, Would use in killing X, his mortal eneee! Un which ne for P100,000.00 cash to who k YS sold hi to buy a un complete with all the pa te Sale, 8 . Was able , on the other hand, was able to register ued by law, name at the Land Transportation Office car in hig a The sale of the car by § to B is at, does not kill X. alid provided g The sale of the car by § ets b, Y S to B is void if § 1g c. The sale of the car by S to Bis valia sons : Xor not. ether S kills . The sale of the car by S to Bis vai, Xor not. Y S to B is void whether kills Six years ago, Marcelo, 17 years old, sold his one. cultural lot to. Bernardo for. P100,000.00." oe 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 crds 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. GQ Neither Marcelo nor Bernardo may annul the sale on the ground of Marcelo’s incapacity. a Both Marcelo and Bernardo may annul the sale on the ground of Marcelo’s incapacity. A contract of sale is not a: a principal contract. b nominate contract.276 90. “91. CONTRACTS c. consensual contract. a. real contract. Gregorio, a wealthy businessman, had often paid the debts of Demetrio, his younger brother, in order to maintain the family’s good name. One day, Gregorio received a text message in his cell phone 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 i 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 miade three months before. 7 % 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. ra Bernardo may enforce payment against Gregorio as long as Bernardo did net erase in his cell phone the text message he received from Gregorio which is a written evidence of Gregorio’s promise. d. Bernardo may enforce payment from Gregorio because asa wealthy businessman, Gregorio should protect his name and that of his family. Perfecto offered to sell his house and lot to Reynaldo for P1,500,000.00. 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 to him. Twenty days later, Perfecto found another buyer who was ready to buy the house and lot for P2,000,000.00. Perfecto wants to ask you whether he cat still withdraw the offer he made to Reynaldo, Decide. a. Yes, Perfecto may withdraw the offer because Zs stands to gain an added profit of P500,000.00 anti 92. yaar is will be a this will be more th, to Reynaldo. an enough Pay a, é Yes, Perfecto may withdraw ny damage, informing Reynaldo of such fa, "offer . No, Perfecto may not with, ran, by just the option was accepted by per Oller beca ha rte te ao" give any thing in yale although ae ose of the may Not withdraw hig oot thereof lapse of the period given to Rey. Mer until th his option. ynaldo to exercis, ise with C Ing i UI ich was Prepared ang Was signed by D after a 3 dete; i following characterize the contract oe of the Insurance Company. D and c L Auto-contract. IL Contract of adhesion. I. Aleatory contract. Iv. Nominate contract. The contract between D and C Ins fe: a 1, Mand Ill. See peny is b. I, Ml and Iv. c. 1, land Iv. ad «1, Wand IV. 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 mionths, 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 th ed court action against him, was constrained to sign a assigning his lot in favor of Cortez to pay his ne of a. The deed of assignment is voidable be intimidation employed upon Datiles. d enforceable, b The deed of assignment is valid an fe by Cort the threat of a court action mat278 94. 95. CONTRACTS through his lawyer being @ legitimate exercise of his right. ; c. The deed of assignment is voidable becate of the undue influence exerted by Atty. tolin, the counsel of Cortez, on Datiles: ; d. The deed of assignment is void because Datiles dig not give his.consent voluntarily. D obtained a loan of P100,000.00 from C.° The 1 agreement showed that the loan was payable within ae 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 successor. in-interest. Before maturity,,C died leaving his son g a. 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 wo, ald be transmitted to the heirs of C. b. S can collect from D although no mention ra made in the agreement that the credit right would be transmitted tothe heirs. c. S-cannot collect from D because the credit right is personal to C. d. _ § cannot collect from D because the law prohibits the transmission of credit rights. _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 e . a. © The agreement. between H and W is valid because they can legally get married if they want to. s b. The ‘agreement between H and W is void for being : contrary to morals. . ° _ may legally demand‘that W live with him as his , fe. > 4. W may legally demand that H give her the manthly ‘Support of P1Q,000.00 that he had promised.geo 279 Guardia, H gel dela » Guardian of p, y gold the palay harvested from therdo Menor, a mn; yardo Menor for 42,000.00. The lang minor, p50,000.00. At the time of the sale ac a value Cy ol 17% gduardo was years old. Eq onthe the damages he suffered under the a Wants to he ago, yy his guardian. What is the remedy sr alin t entered inte Menor? "ia be to Eduardo 4 Annu bent because Eduardo Menor years old at the time.the sale as only 17 y, dela Guardia. was made by Angel b. Rescission because Edu O98 000 ob ‘ardo Menor Suffered lesion a Both rescission and ‘annulment. d. Neither rescission or annulment 7, Which of the following contracts is rescissi g a Contracts entered into during a pe 8 b. Contracts entered into in a state of dna ese c Contracts entered into to defraud creditors when the latter cannot collect the claims due them, a 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 G, 2015. Before A could relay such acceptance to P, P died in avehicular 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. : 2015. b. The contract was perfected on August 1, 2018. & The contract was perfected on August :: 3013. qd. The contract was perfected on August 5, The cause of a.contract differs from the motive Party to the contract in that motive: ct. a. isan essential element of a contra of each280 100. 101. 102. CONTRACT, @ althou, conan illegal, does not affect the validity of the ©. is alwe d. ays known by the other party. when illegal will render the contract void, P bor Krister of a certain church whose members include probe Bularly confides in P because of his many Persona) his pow? is interested in buying the lot of X and uses is Position as elder of the church and confidant of x ee to sell to him the lot. Should X sell the lot to p Y reason of P taking advantage of his confidential relationship with X, the contract between then would likely be voidable because of: a. “intimidation. b. undue influence. c fraud. d. mistake. M, a movie actor who has fathered many children different women, donated a house and lot to X believir 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 have it declared void ab initio. S convinced B to buy a gold-plated bar which | s told # was made of pure gold. B bought the thing believing ne it'was really made. of pure gold. The contract between and Bis: valid. ch \ voidable.y Bee coaTmncrs 28) rescissible, a void. went to the store of C an, ask, 103: Panstruction | materials on, credit. d ae latter to ‘eins nim, he denied D’s Tequest, Since ¢ dia to him . ari Not community, happened to.be at 4 mee sinesg grt 2 A overheard the Conversation, He toi © at that time know D. He has a goog Cg and 2 Credit reputatic’:» | personals C granted credit sale to. the ah cordingly invoice issued by C. Later, how, er, Ce 'denced by ele from D because it turned out that’ th ‘Ould not collect made by R as to the Credit of ’: Dw. FePresentation a C can go after R for mages by latter's misrepresentation, TeASON of the b. C cannot 80 after R for dam; representation w, ages, . e yas not in Writing Because Ry C can go after because th, 7 7 2 ere we evidencing the sale. 8S a sales invoice d. C can go after R bec: that induced him to ‘ause it was R’s Tepresentation form of the represent; Srant a credit sale to D. The ‘ation is immaterial, 104. On June 1, 2015, S and B ent sale whereby S sold his « The parties agreed that S$ tered into an oral Contract of Omputer to B for P50,000.00, shall deliver the computer toB 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, ; ea The contract of sale between S and B is partly executed. se dee 4, The contract of sale should be in wat ee can be determined whether it is executory. ee the baby 5. B bought a baby boy from §. B knew that Ww, and in named, Ms ‘as his illegitimate son by a womal282 106. 107. 108. 109. CONTRACTS which W sold to S. The contract between B and $ is: _ a. b. c. a. valid. void. unenforceable. voidable. 1 C, donated a parcel of D, out of hi \d affection for * of his love an ‘The fo! ties land to the latter who accepted it. by law were complied with. The co! is: » The a. b. io d. ss ntract between D and C an onerous contract. a gratuitous contract. a remuneratory contract. an accessory contract. use of the contract in Number 106 is: the parcel of land.” the acceptance of the donation by C. the generosity of D. ; . the contract has no cause because C did not give any consideration to D. 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 b. Oral sale of a piece of land made through an agent whose authority is in a public instrument. Sale of a piece of land in a public instrument made through an agent whose authority was given orally by the principal. . - < Sale of a piece of. land in a private instrument made through an, agent whose authority is in 4 public instrument. = Sale of a piece of land in a public instrument made through an agent whose authority is in a public instrument. et S sold his only horse to B for P30,000.00. Th i , 00. e parties agreed that S shall deliver the horse one week from the execution of their agreement. B, however, is required to pay the price immediately in certified check. In the placea i gsend B, it was the custom that Id gpoul Mot stated in the agreement in would & a lace a horseshoe on its heeeene Peling a be cared for before delivery, cluding hy ee this Sis mae eee _ Place a hor, iin horee although it was the custom ; on and B did not stipulate about tn Place ne, horae § is obliged to place a horsesh, because the observance of custom becomes part of the contract, or Usage in the S is not obliged to take care of th delivery because the caring of th © horse before stipulated, € horse was abe S and B are bound oni bj their agreement. ¥ by the terms stated in In January 2008, S, 17 years old, sold hi 110. 21 years old. The sale was without nee only car to B, j . le knowled, ian of S. Assi lee of G, oe , ‘Ssuming that an annulment case is in S may bring the action for annulment, b. G may bring the action for annulment. c, B may bring the action for annulment, a Annulment will not prosper whoever will file it. il], Which among the following contracts is void? ie; “ a A contract of barter between S, insane, ‘and B, 17 years old. ‘ o 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. x c A contract of sale where B, the buyer, aimed.a gun at the wife of S, so that S would sign thédeed of sale. “ 4. A contract for the sale of a cow which is suffering from a contagious disease. "2. Which of the following contracts is valid and enforceable? ~~ a b, of An oral promise to answer for the default of another, : ; Ber A donation and its acceptance in @ PF instrument of a parcel of land. ee284 113. 114, 115. CONTRACTS c. An-oral lease of a mining equipment for more than two years, ; da. An oral contract of sale of # ring worth P450,09 between an insane and a minor. S and B entered into a contract where they made it appear that f land worth P50,000.00. In S sold to B a parcel ee eB 30,000.00 with mo ing the parcel of land as security for the debt. a. ee and B are bound by the contract of loan and mortgage. b. S and B are bound by the contrat of sale. c. S and Bare not bound at all.” ad. S and B are bound by the contract of loan and mortgage if third persons are affected. S, a store owner 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 ayear. 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. The conitract is-valid and enforceable although not in writing. 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. S sold @ 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 n0¥ wants to register the sale with the Register of Deeds.285 Bcan compel Sto execute & duly notarized so that'B can °°" Of Sale yy. B cannot compel § to cxeeet t santich is le he b. pecause the contract j Sale, ‘The contract between gueMOrCeabie ed Of Sale c was not in the form requi i8 void becay g, The contract between $ and Ka law. Use it B can sue for damages, "S Fescissible; hence dB entered into a contract w) 6 8 for P100,000.00. Based on the we S Sold his car following statements is incorrect? ©°"B Which of the The contract is voidable j f Si m is 25 years old. Sis 17 years old, and B The contract is unenfo: ifs; es insane. roeable if S is 17 and Bis The contract is void if B, 2: c , 25 30 years old, ‘he ld compelled s, : to sign the d threatening to burn the house of o of sale by a The contract is rescissible if at ‘the time the car was the subject of litigation evi ae against S to recover the car, and the court and X did not give their authority to the sale. . 1, Which of the following contracts is valid and enforceable? a. A contract where a party gave his consent in a moment of drunkenness. b. . Acontract where a party gave-his consent because ~ the .other party threatened’ to sue him for an unpaid debt.- c Acontract where a party gave his consent because the other party threatened to kill the first party’s spouse. 4A contract where there was inadequate cause attended by mistake. to 'I8. A entered into a contract with B whereby B agreed not to 75,000.00 tobe given by A ee a Avcrween A and B P5,000.00 to be given by A: The contract bs Is: 8. void for beirlg contrary tolaw. void for oe contrary to good custo286 119. 120. 121. CONTRACTS ic policy. ig wrong when one ther in a crime, &. void for being contrary to publi 4. valid because there is nothin: does not-want to testify against ano “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. a b. A contract for the construction of a building scheduled to begin 3 months after the execution of the contract. i A contract for the lease of an agricultural lot for a period of 8 months. z one agrees to pay another's d. A contract whereby re debt if the latter defaults in his payment. c- Which of the following contracts is valid and enforceable? 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. An oral contract for the sale of a piéce of land for P50,000.00 with the buyer giving a down payment of P20,000.00. 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. S, 17 1/2 years old, sold his bicycle to B, 24, for P12,000.00. The price is payable in 12 monthly inétallments. 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. Smay no longer annul his contract with B. - 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. c.ae un S, Dis ob; we 10 bags of detergent soap to ¢ 10 days” obi 123. 14, der a contract between D agreement. On due date ) ate, D deli » Cree etergent soap Which he mixeq with Wered to cy wetion of a The contract entereq fa ‘pechalk. ne _ a voidable because of the frau meen D p, The contract is valid. ‘The fra id * does not affect the valiqi 2 cooyed obliged to pay damages to'cr' ® Contract tur, D The contract is void because of ; by D in the performance of his oom employed cissibl on, suffered by C. ible because of the damages January 1, 2010, Berroya eaatiadio who was ‘inkahee vee fe el of land from acknowledged before a notary public si Sale was duly the sale, Berroya realized that he needed a cee otter which to construct a commercial building Aes on same time, Salustiano who had been yi the hiatric treatment was declared of sound ming he 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. G Neither Berroya nor Salustiano may successfully prosecute a court action to annul the contract. 4, 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. Stanley, 17 years old, suffered a deep cut on Be a0 ‘his during a basketball game. He requested one ot a teammates to call Dr. Ramos whose clinic vrater Dr. Stone’s throw from the basketball court. 300.00 for the Ramos sent a bill to Stanley amounting to FP! Services he rendered. Stanley relat ‘ claiming that, as a minor, he was ot ue Was a reasonable amount.288 125. 126, CONTRACTS ii minor and Stanley is not liable because she is a Shas incapable of giving consent t0 enéee services of the doctor. a b. Stanley is liable although ai the contract involved a necessary” ce. Stanley is liable only when he reaches the age of jority. : A d. ae eecabie is the one liable because it was he who personally called the doctor. .d to you: lowing ts are presente: yo = er eS Sinks deposit between A and XYZ Bank. The contract was ‘executed so that A’can rf te of bank deposit to. the embassy minor because sent a certifical pe. . - Peace country since, A is applying for a visa to really no deposit in the the said country. A has tL. A contract where S and B made it appear that S T. oatid 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. Contract I is absolutely simulated; Contract Il is relatively simulated. ° d. Contract I is relatively simulated; Contract II is absolutely simulated. Co Which of the following contracts involving real property is valid and enforceable although not in writing? x e Sale of a piece of land for P50,000.00. . Lease of an agricultural lot for a period of 2 years at a monthly rental of P3,000.00. G. Mortgage of ‘a commercial lot f 4 P50,000.00. ree i Donation and acceptance of a residential-lot. ee oun a vacant lot adjacent to a bigger lot where provid ed us planned to put up a two-week performance as in the lease contract: which it executed withae j, the owner of the bigger 1, vests property fora parking lot it, ! expect using it a small shed which cog, pa2°0 leveleg iO 9 aot junt he had he » Pay the contracto,_°20,000, circus cancelle; the Performance ay Later, howe oh action to recover P20,000.00 fk Tadeo ‘bre ever, ond ‘on the foregoing information ..°™ it ar ght a. Base erect? Ms Which of the ABAspi: jg i000 : e fo) The circus contract took effect Circus and Legaspi,-the Partie Only. bey lease. 'S to the Tadeo can recover dama, "i ges fi Legaspi by reason of stipulation pos, Cireus ana Tesco Et om crac P20,000. cause that is the obligano mount of contracted to pay, gation he alone g, Tadeo, as an incidental be: : nefici under the circus contract, eficiary, has no rights tar Contract of og AD insurance policy which, in Praotice, is 8 jngurance company and all the insured fae td van sign thereon if he agrees with its terms, is an exar 7 ce an auto-contract. ee a. b. a contract of adhesion. c a commutative contract. ‘d. a gratuitous contract. © 9. 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 SS Een donated all his property to Normita. Both oe ent and the acceptance were made ta a public What is the status of the donation? t! a Valid since it was in a public document with the acceptance. ogether (cient aie290 130. 131. CONTRACTS b. Voidable by reason of the undue influence employed by Normita on Don Henrico. ' —” Voidable by reason of the intimidation employed by Normita on Don Henrico. s Voidable since the old age of Don Henrico prohibited him from thinking intelligently. 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, § refused claiming that L 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. D can ask for the return of the book because it should be considered to have been lent only by L to S, ie., the contract should be one of commodatum only. D cannot ask for the return of the book because the same should be considered as having been donated by L to S. 4, 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. S sold one of his lots to B for P100,000.00. “The lot, located beside a busy street, consisted of 1,200 square non ae was covered by Transfer Certificate of Title OK 1 ee dasa After. registering the sale with the ioe et i feeds and the issuance to him by the said Seen a transfer certificate of title in his name, B dence at the deed of sale and the new title paral 8 adjoining lot which, although also consisting cai ke Square meters, was covered by TCT No. 12346 ated farther from the street. B learned that C, the secretary of _ Secretary of S, typed the wrong description on the deed ofoa . B now approaches you ¢, action to take. What advice in Advice on Z Annulment of the yo consent to the purch; No. 12346, ChASE Of the ot ot, he did not b Rescission because the " Sted by Tey caused him damages, Troneous 4, lescript: = pbelere aaah because the ‘Scription has show the true intent; of ‘ contract. Sntion of the Partieg ued to a Declaration of nullit ~ ‘Y of the Contra, ct ’ SON of the wrong omens it is 32 which of the following contrac 13 a Asale made by a void ab initio by rea: price of PS50,000.00. Th P60,000.00. b. A sale of a piece of land mag his creditor. The buyer & By D to defraud c, of the piece of land aware of the fraudulent intenti .D ir tae cake ion of D when D 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. ad 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 acceptanet if a party to the contract of a benefit under it Toll b. The right to set up the defense of ne ist rai contract may be waived if the illegal : within a reasonable time. 3 tract, suc! c If there is a novation of @ see eck is valid. part a ided the new CORT” ofa novation is valid provi defense of illegality 4. The right to set up the Cro void contract does not Pre ‘i iil eimai292 134. 135. 137, Oe NERTS, ith M, @ Man, as M’s yy, to live ae in’ exchange {or an jage wa wort: OEE of ee cepakt of P10,000,00, jgnout the monthly found another-wo, wae 10 are. After en M ae pped eving SUPP inuation of the ne continual mon; = Fran demand reuant to their agreement, thly & gupport ea the return of the support fins iu b Mee ee W for the past 3 years, ’ “hed given d W will be criminally Prosecuted, Man between M and W is illegal bi: t agreement 1 v i e Teality does not constitute a ctime. u i ms of which the par: * ct by virtue of the terms of ; ae eS ad obligate themselves to enter into ener contract at a future time, upon the happenj, certain events, or the fulfillment of certain cond itions, Contract of adhesion a 5 b. Contract of option c Conract of sale : d. Auto-contract O was cleaning the glass window of his building when a large piece of broken glass fell down directly hitting the roof ofa car which was parked below. C, the owner of the car, was not around. Sensing liable for the damage on the car, O immediately went down and cleaned the mess, » 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? & 0's liability, if any, is based on quasi-delict. b The agreem: ¢ ent between O and W is binding on both of them, "'W may testify in court despite the agreement. _ a. The agreement between O and W is void for being Contrary to public Policy. Salendtez agreed to sell his car to Martinez who ie turn Years old, for P100,000,00. Martinez g aidi scr 293 gow? Pay iied delivery of the car, wo nigh sale on Salendrez may annul the contract a a. pe Soffer from Tablizo. He thus atte; ment of 10,000.00 of the price, Salendren petore eived a Mpted to ininoe: annul the minority of Martinez rendered nae the migable. Contract only Martinez may annul th: yund of his incapacity. © contract on the Martinez may no longer annul pecause he is deemed to have rattan seed te gave a down payment at the, time of the Senten of the contract of sale. oat Neither Salendrez nor Martinez may contract because thé contract is pettly Geecntel je} the ground that Martinez was a torrente, a supplier of typewriters, sent to’ several customers in various parts of the country a letter offering fo sell out “all his stock of 10 units of Olympia i ithe discounted price of P3,000.00 pli ot a stated that the reply must be received by registéred mail not later than September 18. On September 14, Belleza sent a registered letter agcepting 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 b. c d. * . Sand B signed a deed (a written contract) The acceptance by Belleza because it was mailed first. “ The acceptance by Corpuz because it was received first by Torrente. ; Neither acceptance is binding on Torrente. Both the acceptance will be binding on Torrente, -.with Belleza getting 5 typewriters, and Corpuz getting the other 5. Vehicle whereby S sold his car to B for P200/0 Parties agreed that S would deliver the car, and B would Pay the price, after two weeks. Was over, § found another buyer who a Before the two week period141, CONTRACT for the car. May 8 wally itr Bony. 00 for 220,000. vith B? s not yet paid the price, tract wil use B ha! cont pecat Yes, “ Leger the other buyer was willing to Pay b MOT se § was already bound by hig No, é Cony d he cannot unilaterally withdray, frome = oe S has not yet delivered the car, Yes, . ; ined a loan from C amounting to 000 D obtaine P200, 00. 7, mortgaged his lot. C regis, 0 secure eth te Regine of Deeds. Later, D soig the ff ee caairal aware that the lof was Mortgage, on the due date of the loan, ‘© demanded Payment but 5 oe pay. Accordingly; C decided to tm te mortgage on the lot. X, however, opposed the foreclosure claiming that he was not bound by the Mortgage since he ta thereto. - ag shes by the ‘Mortgage although he was Rot aware of it because the same ig Tegistered, b Dota party whee” TERE bene he a, not a party thereto, c Only D and c Were the Only parties thereto, a. X was not bound by the mortgage because he was not aware of it, On June 1,5 Offered to sell & Specific 8enerator set to B for P300,000.00, B sent his letter of acceptance to $ on June 8. On June 10, however, B became insane. On June 12,8 Teceived B’s letter of acceptance, _ a fe contract wag Perfected on June 8 when B “ his letter of acceptance, at which time he was Sane. > The contract was Perfectea on June 12 when $ learned of the acceptance. the ce The contract Was not perfected because insanity of B occurred, before S came to learn of the acceptance of his offer by B.2 and lot for P2,000,000.00. 143. ‘a. Balmores.may compe: pacts The contract was perfec 4. acceptance made by B a °n June date of the offer, June 8 pen Pecause the p gave 8 special power of attomey to 4 ted to hii On May 7, °° Sell Ps house authority granted to him by Poff. Jot to B at the price of P2,000, 100.00. the house offer on May 8 by sending a letter of 0B accepted the such date, which letter of acceptance wag ce to A on 10. On May 11, P revoked A's auth jatter could inform him of B’s acceptance lority before the . The contract was Perfected on Ma 8 his letter of acceptance, Y 8 when B sent The contract was : b. Perfected received the ietter of acceptance May 10 when a The one ‘was not perfected because P, the tru owner of the car that was sold revoked A's authority before he came to learn '. acceptance. 7 a a. The contract was perfected on May 7 since x the acceptance by B retroacts to the date of the offer. 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 ornot. 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 _ increased to P600,000.00 St i i i for the 7 interested in buying the car O serowe to sell to him tes oar for P500,000.00: because they have anf contract which was founded upon consideration. a Balmores b. Sonora may validly withdraw his one is and all that Sonora needs t Balmores of such withdrawal.144 145, OSC TS is offer even before draw his of! the ry en pa nt BE RE 1 Balt ¢ oon of the ris his right as owner anc seller of the lapse. e that pecaus® to sell the car to another only ,: car. is free the option period that he “2 ora. lapse of Rave d before the P because he stands to Bain to iso0.00 from the transaction... 100,000. : C because he thought that C wasp; v donned hie Ht 7 e deed of donation was signeq D iegitimate acknowledged by them before a Notary Public and ae rtificate of title to the lot was issueg by the Register of Deeds. Later, D, learned that C Was not his son, but that of another man. ’ D can have the donation annulled on the groung g ® nistake of identity. b. Dan flo longer annul the donation because a new "—_certifiditte of title has already been issued, D canfot annul the donation because he freely "entered into it. : ; dD cannot annul! the donation because disregarding it would be unfair to C, A has been for more than 20 years the legal counsel of c Course of giving counsel to C to convince C to donate his lot to him. A 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. f ®. The deed of donation is voideble on the ground 0 Undue influence, dof c. The deed of donation is voidable on the groun' intimidation. + was the The deed ‘of donation is valid because it wae only way by which C could keep A as his lawy®yf 149, lot . lement, qhe except: S of a contr Acts gent of the contracting consensual @ Object certain which ig the see bv contract. ‘ubject ™atter of the Delivery of the object of the Contray . Cause of the contract which must be estab ° ish insurance contract is: i Any an aleatory contract. e a contract of adhesion, > both (a) and (b). {neither (a) nor (b). porrowed P100,000.00 from ¢, Jemanded payment but D refused to pay. in vey st, © C threatened to sue D. Afraid that he would be sued f executed a contract transferring his lot to C by , of dacion en pago. What is the status of the dacion eines ? 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. a Valid because there was no intimidation when a party seeks the aid of the courts to enforce his right. a Rescissible because D suffered damages. 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? ae Yes,on March}. * Yes, on March 20. Yes, on March 21. No, no contract was perfected at all. pos These statements are ted to you: 7 presented ce. : Option money is part of the purchase pr298 151. 153. RAC TS, proof of the perfection of oney 18 weer es ion of the on statements: In your 7 an statements ne tn a th statements d. . .00 bill to C to have it com . D gave his eda) Oe af PSS.00 ta US$1.00." wrrets pesos at be money in pesos, he discovered that c ee 5,700.00 instead ‘of P5,500.00. No Writtes ageamellt was executed by the parties. The only Written evidence of the transaction was, the tape dispenseq by the adding machine showing the computation to be PS,500,09 and which was in the possession ofD. a. The contract is voidable. C can have it annulled on the ground of mistake. b. The contract is valid. D must return the ot P200.00 to-C. = c The contract is unenforceable since it was not in writing. a C can demand that a writing be executed to show the true intention of the parties. 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 es lender and Tepresents P as borrower. | The contract of loan in such a'case is considered as: a @n auto-contract, b. an aleatory contract, a 4 remuneratory contract, d. @ gratuitous contract. D dined at c’s restaurant where he was served fed amounting to P475.00. When he was about to PO discovered that his wallet was missing, Not havild oad money to pay, he called T, his friend, who knew ©yr on 299 ned his predicament. T, thro 7 ened ¢C and told the latter oi pis cell phone, ene and that he would be the one to part without incist ot or cannot Pay. y D's bill if D 4009 he promise of T can be enforced oe issued by C to D. enced by the bit mise of T can be 4, fee the food sale wan ieee asst him by ¢ The promise of T cannot be enforced 00. , c by C because it was not in the form Sgainst him law to be enforceable. Tequired by The promise of T can-be enforced against him by'C “because D be: bee already benefited from the contract of g gold his lot consisting of 1,000 square mete However, the deed of sale signed bythe parties chomed s 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 ® Reformation. t Rescission a 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 nét 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 rfected on August 10, 2015. ; b The contract been Samonte and Benavidez was perfected on August 15, 2015. ® The contract between Samone fected on August 18, 2015, No rontract was perfected between Samonte and Benavidez. and Benavidez was