CONTRACTS

TESTBANK

Interest agreed in the contract is a/an It is present when one of the contracting parties is
A. Essential Element compelled by a reasonable and well-grounded
B. Natural Element fear of an imminent and grave evil upon his
person or property
C. Accidental Element
liberality in commodatum is a/an
A. Mistake
A. Essential Element B. Intimidation
B. Natural Element C. Violence
C. Accidental Element D. Undue influence
The penal clause in the contract is a/an E. Fraud
A. Essential Element A false notion of a thing or a fact material to the
contract
B. Natural Element
A. Mistake
C. Accidental Element
warranty against eviction is a/an
B. Intimidation
A. Essential Element C. Violence
B. Natural Element D. Undue influence
C. Accidental Element E. Fraud
delivery in real contracts is a/an It is present when a person takes improper
advantage of his power over the will of another,
A. Essential Element depriving the latter of a reasonable freedom of
B. Natural Element choice
C. Accidental Element A. Mistake
The manifestation by the offeree of his assent to B. Intimidation
the terms of the offer
C. Violence
A. Consent
D. Undue influence
B. Offer
E. Fraud
C. Acceptance The age, sex and condition of the person shall be
Can be inferred from act or conduct considered to determine if there is
A. Oral acceptance A. Mistake
B. Written acceptance B. Intimidation
C. Implied acceptance C. Violence
An offer becomes ineffective upon
D. Undue influence
A. Infection of covid 19 by either party
E. Fraud
B. Paralysis of either party It is present when, through insidious words or
C. Insanity of either party machinations of one of the contracting parties, the
Contracts entered into during a lucid interval are other is induced to enter into a contract which,
A. Valid without them, he would not have agreed to
B. Voidable A. Mistake
C. Null and void B. Intimidation
Contract entered into during a hypnotic spell is C. Violence
A. Valid D. Undue influence
B. Voidable E. Fraud
C. Null and void Given as proof of the perfection of the contract
Contract entered into in a state of drunkenness is A. Option money
A. Valid B. Earnest money
B. Voidable C. Deposit
C. Null and void
What is the rule if the party knew the doubt, Promise of a thing is the cause in
contingency or risk affecting the object of the A. Onerous contracts
contract? B. Remuneratory contracts
A. There is mistake C. Gratuitous contracts
B. There is no mistake Reward for previous service is the cause in
C. There is fraud A. Onerous contracts
D. There is no fraud B. Remuneratory contracts
Confidential, family, spiritual and other relations C. Gratuitous contracts
between the parties are to be considered to Service by the other party is the cause in
determine whether there is
A. Onerous contracts
A. Mistake
B. Remuneratory contracts
B. Intimidation
C. Gratuitous contracts
C. Violence What is the status of the contract if the cause is
D. Undue influence not stated?
E. Fraud A. Valid
The parties are bound by their real agreement. B. Null and void
A. Simulation of contract C. Voidable
B. Absolute simulation D. uneforceable
C. Relative simulation The most defective contract
Cannot be an object of contracts Ans. Void / inexistent contract
A. Within the commerce of men The least defective contract
B. Future things Rescissible contracts
C. Future rights A contract which cannot be ratified
D. Future inheritance Void/inexistent contract
Can be an object of contracts A contract which which is defective due to lesion.
Rescissible contracts
A. Outside the commerce of men A defective contract which can be annulled within
B. Future inheritance four years from the time of the discovery of the
C. Future rights same
D. The right to vote A. undue influence
Fish in the open sea is B. mistake
A. Outside the commerce of men C. insanity
B. Within the commerce of men D. insolvency
C. Physically impossible A defective contract which can be annulled within
D. Legally impossible four years from the time of the discovery of the
A transmissible right same.
A. Commodatum A. Intimidation
B. Support B. Minority
C. Mutuum C. Fraud
D. Marital rights D. Civil interdiction
This is not a future thing A vice of consent which can be annulled within
A. Chicken to be raised after 45 days four years from the time the defect of consent
ceases
B. Cassava to be harvested in the next
A. Undue influence
harvest season
B. Mistake
C. Puppies of a specific dog
C. Insanity
D. Honey that the bees will produce
D. Minority
Liberality is the cause in
Cannot ratify the contract of an incapacitated
A. Onerous contracts
The capacitated party
B. Remuneratory contracts A similarity of rescissible and voidable contracts
C. Gratuitous contracts There is mutual restituition
Payments of obligations which are not yet due is
Valid
Who first enacted the Statute of Frauds?
English Parliament
Statute of Frauds is applicable to
Executor contracts
Kim and Coco who are both minors entered into a
contract of sale of an iphone. What is the status of
the contract?
Unenforceable
Kim and Coco who are both minors entered into a
contract of sale of an iphone. The guardian of Kim
ratified the contract. What is the status of the
contract?
Voidable
Kim and Coco who are both minors entered into a
contract of sale of an iphone. The guardians of
Kim and Coco both ratified the contract. What is
the status of the contract?
Valid
The prescriptive period for void or inexistent
contract
None
The other party is allowed to recover in void
contracts if
A. The contract resulted in a crime and the
parties are in pari delicto
B. The contract did not result in a crime
and the parties are In pari delicto
C. The parties are in pari delicto and one
party is a minor
"D" died leaving an estate amounting to P
2,000,000. During the lifetime of "D" however, he
contracted a loan amounting to P4,000,000, out of
which "D" paid P1,500,000 while he was still alive.
The legal heirs of "D" are X and Y. How much will
be the liability of X and Y for the loan of "D"?
P 2,000,000
"D" died leaving an estate amounting to P
2,000,000. During the lifetime of "D" however, he
contracted a loan amounting to P4,000,000, out of
which "D" paid P1,500,000 while he was still alive.
The legal heirs of "D" are X and Y. How much will
be share of X and Y in the inheritance of "D"?
None
"D" died leaving an estate amounting to P
20,000,000. In the last will and testament of "D",
he bequeathed a big bike motorcycle worth P
1,500,000 to his friend, "A". The last will and
testament however was declared null and void in
the probate proceedings. Which statement is
correct?
If the heirs of D gave the big bike to A, they
can no longer recover the same
What is the status of a contract of lease of public
streets or thoroughfares entered by a city
government with private market stallholders?
Null and void
A stipulation which is considered an exception to
the relativity of contract is called
Stipulation pour autrui
A contract that has caused a particular damage to
one of the parties or to a third person, and which
for equitable reasons may be set aside even if it is
valid
Rescissible
A stipulation that Coco will marry Kim in
consideration of money is null and void because it
is contrary to
Morals and good customs
An error which will vitiate consent
A. Error as to the solvency of other party
B. Error as to the motive of the other party
C. Error as to estimates
D. Error as to basis of contract
What is the liability of a third person who acquires
in bad faith the things alienated in fraud of
creditors
He shall indemnify the creditor for the
damages suffered by them on account of the
alienation whenever it should be impossible
for him to return them
Before Don Sol dies, his heirs enter into an
agreement for the partition of the estate of their
father. What is the status of the contract?
null and void
An agreement was entered into by the parties
which provides that either one of them may
terminate the contract for the violation of any of its
terms and conditions. Is this stipulation valid?
Yes, because the validity or compliance is not
entirely left to the will of one of the parties
The hotel-keeper and the guests agree that the
responsibility of the former as provided by law
regarding necessary deposits brought by the
guests is suppressed or diminished. It was also
stipulated that the hotel-keeper is free from
responsibility to the effect that he is not liable for
the articles brought by the guest. Are the
stipulations valid?
They are always void for being contrary to law
and public policy
Not a requisite of fraud to vitiate consent
A. Employed by one of the contracting
parties only
B. Induces the other party to enter intno
the contract
C. Must be serious
D. Must result to injury or damage to the
party asking for annulment of contract
It is a real and gratuitous contract wherein one of
the parties delivers to another , either something
not consumable so that the latter may use the
same for a certain time and return it
Contract of commodatum
What is the remedy of the parties in case of
relatively simulated contract?
Reformation of instrument
Which of the following statements best describes
aleatory contract?
A contract whose fulfillment depends upon
chance such as insurance contract
Can give consent to a contract
Blind person who do not know how to
write
Which of the following vices of consent if
committed by a third person who did not take part
in the contract may annul or make the contract
voidable at the judicial discretion of the court?
Intimidation and violence
If the doubts are cast upon the principal object of
the contract in such a way that it cannot be known
what may have been the intention or will of the
parties, what shall be the status of the contract?
Null and void
It refers to the immediate and proximate purpose
of the contract or the essential reason which
impels the contracting parties to enter into it and
which explains and justifies the creating of the
obligation through such contract
Cause of contract
A offers his watch to B for P500. B said that he
will buy it for P450. Is the contract perfected?
No because a qualified acceptance
constitutes a counter-offer
If one of the parties believed that he received a
certain amount as a loan, which the other
delivered as a real deposit, what is the status of
the contract?
Null and void because of want of consent
What is the remedy of the injured party in case of
null and void contracts?
Action for declaration of nullity of contract
An audit staff and an auditing firm orally entered
into a contract of employment whereby it is
stipulated that overtime premium and holiday pay
are waived. Is the waiver valid?
No, because it is contrary to law and public
policy
It is a real and onerous or gratuitous contract
wherein one of the parties delivers to another
money or other consumable thing, upon the
condition that the same amount of the same kind
kind and quality shall be paid
Contract of loan or mutuum
What is the remedy of the parties in case of
absolutely simulated contract?
Ask for declaration of nullity of contract
ABC Inc. makes an advertisement for bidders of
its land. XYZ is the highest bidder. Is ABC bound
to accept the offer of XYZ?
No, because advertisement for bidders are
simply invitation to make proposal
As a general rule, no one may contract in the
name of another without being authorized by the
latter or unless he has by law a right to represent
him. What is the status of a contract entered into
in the name of another by one who has no
authority or legal representation, or who has acted
beyond his powers?
Unenforceable
What is the remedy of the injured party in case
the determination of the performance of contract
by the third person designated by the contracting
parties is evidently inequitable?
The injured party may ask the court to
decide what is equitable under the
circumstances
Where a contract is susceptible of being
interpreted as a sale with a right of repurchase
and as a loan with equitable mortgage, what shall
be the interpretation of the contract?
Contract of a loan with equitable mortgage
What is the status of relatively simulated contract?
The intended contract is valid but the
stated contract is void requiring reformation
of instrument
A contract entered into through letter, telegram or
telephone is presumed to have been entered in
what place?
In the place where the offer was made
After Don Sol died, his heirs enter into an
agreement for the partition of the estate of their
father. What is the status of the contract?
Valid
Which of the following extinguishes the action to
annul a voidable contract?
RATIFICATION
A stipulation provides that the student's private
scholarship is good only if he continues in same
school and that he waives his right to transfer to
another school without refunding the equivalent of
his scholarship in cash is null and void because it
is contrary to
MORALS
Which of the following void contract may become
exceptionally binding by reason of estoppel?
those which fail to comply with formality
required by law for validity but they do not
affect third persons
In action for ejectment, the lessee interposed the
defense that the contract of lease authorized them
to continue occupying the premises so long as
they pay their rents. Is the defense of the lessee
tenable?
No, because it violates mutuality of
contract
In case of conflict between the evident intention of
the parties and the words of the contract, which
shall prevail?
The intention of the parties shall prevail
over the words of the contract
A mortgages his land to B and the mortgage is
registered in the Register of Deeds. Afterwards, A
sells teh land to C. Is the mortgage contract
binding upon C?
YES, because the contract creates a real
right over immovable
when one of the parties is unable to read, or if the
contract is in the language not understood by him,
and mistake or fraud is alleged, who shall
shoulder the burden of proof in case of lawsuit
arising from the contract?
The person enforcing the contract
It is an accessory contract which must be in
writing if executory to be enforceable whereby a
person subsidiarily binds himself to the creditor to
fulfill the obligation of the principal debtor in case
the latter should fail to do so
Contract of guaranty
What is the status of a contract entered into
between an unemancipated minor and an insane
or demented person?
Unenforceable
A person died leaving liabilities. Are the heirs
liable for the obligation left by the decedent?
Yes, but not beyond the protperty they
received because there is privity between
them and their predecessor