Professional Documents
Culture Documents
I. Contracts without cause or with unlawful cause produce no effect whatever and are
considered null and void.
II. Contracts without motive or with unlawful motive produce no effect whatever and are
considered null and void.
a. I only
b. Il only
c. Both I and Il
d. Neither I nor Il
100. When, three having been a meeting of minds of the parties to the contract, their true
intention is not expressed in the instrument purporting to embody the agreement, by
reason of mistake, fraud, inequitable conduct or accident, what is the remedy of one of the
parties?
a. Ask for annulment of the contract because the consent is vitiated.
b. Ask for reformation of the instrument to the end that such true intention may be
expressed. c. Ask for rescission of the contract.
d. Ask for indemnification for damages.
101. If mistake, fraud, inequitable conduct or accident has prevented a meeting of the minds of
the parties, what is the proper remedy?
102. The following are the instances wherein reformation of the instrument is the proper
remedy, except
a. When a mutual mistake of the parties results to the failure of the instrument to disclose
their real agreement.
b. If one party was mistaken and the other acted fraudulently or inequitably in such a way that
the instrument does not show their true intention.
c. When one party was mistaken and the other knew or believed that the instrument did not
state their real agreement but concealed that fact from the former.
d. When through the ignorance, lack of skill, negligence or bad faith on the part of the person
drafting the instrument or of the clerk or typist, the instrument does not express the true
intention of the parties.
e. If two parties agree upon the mortgage or pledge of real or personal property, but the
instrument states that the property is sold absolutely or with a right of repurchase.
f. When one of the parties was induced to enter into a contract through fraud, undue
influence, mistake, intimidation or violence.