BLAW MODULE 8 FOUR KINDS OF CONTRACT

Question 1
S owns an oil painting. Being in need of money, S sold the painting to B for
Php10,000. After the sale, it
was discovered that the painting was valuable and worth Php50,000.
Response: B is entitled to the benefit of the contract because it is valid and
binding.

Question 2
Which of the following contracts is rescissible?
Response: Those which are entered into by guardians whenever the
wards whom they represent suffer a
lesion of more than 1/4 of the value of the object of the contract.

Question 3
Three of the following are rescissible, which is not?
Response: None of the above
Question 4
To defraud his creditor, A sold his house to X. When however the creditor
wanted to collect his credit,
somebody lent A enough money. Is the sale rescissible?
Response: No, because the creditor can collect the credit due him.

Question 5
Reluctantly and against her good sense and judgment, Rose entered into a
contract for the delivery of
five (5) tables to Corazon for the price of P15,000. The contract is
Response: Valid

Question 6
The following successive measures must be taken by a creditor before he
may bring an action for
rescission of an allegedly fraudulent sale, except:
Response: Immediately file an action for annulment of sale.
Question 7
The following are the requisites for action to rescind contracts in fraud of
creditors, except:
Response: The third person who received the property conveyed, if it is by
onerous title, has been in
good faith.

Question 8
The following are defective contracts, except:
Response: None of the above.

Question 9
The following are rescissible contracts, except:
Response: Those where one of the contracting party is incapacitated.

Question 10
The following instances are badges of fraud, except:
Response: A sale upon credit by a solvent debtor.

Question 11
Example No. 1: Guardian of W, sold W's house valued at Php50,000 for
Php37,500 or a lesion by 1/4 of
the value.
Example No. 2: X sold his house valued at P50,000 for only Php10,000
because X did not know the true
value of the house.
Response: Both contracts are valid and enforceable.

Question 12
D is indebted to C in the sum of P10,000. For the purpose of avoiding the
claims of C, D donated all his
properties worth the same amount to X.
Response: The contract is rescissible
Question 13
The following are the requisites for action to rescind contracts in fraud of
creditors, except:
Response: The creditor has other legal remedy to satisfy his claim.

Question 14
Is a relief which the law grants on the premise that the contract is valid for
the protection of one of the
contracting parties and third persons from all injury and damage the
contract may cause, or to protect
some incompatible and preferential right created by the contract.
Response: Rescission

Question 15
An accion pauliana presupposes the following, except:
Response: None of the above.

Question 16
D is indebted to C for P10,000. For the purpose of defrauding C, D sold his
only parcel of land to X
valued P10,000. X had no knowledge of the intention of D.
Response: The contract between D and X is binding.

Question 17
It is when the debtor has more liabilities than his assets.
Response: Insolvency

Question 18
Entails the return of the benefits that each party may have received as a
result of the contract.
Response: Mutual restitution

Question 19
A made a donation to B. Later, A contracted several debts. What A has left
as assets are much less than
his present liabilities. May the donation be rescinded?
Response: No, because the debts were incurred after the donation.

Question 20
To defraud his creditors, A sold his real property to B. B now seeks to
register the sale. X, a creditor
seeks to prevent the registration on the ground that it is a rescissible
contract. Despite X's objection may
the land be registered in B's name?
Response: Yes, because the contract although voidable is valid and
binding.
Question 21
The following are rescissible contracts, except:
Response: Those covered by statute of frauds.

Question 22
The exhaustion of all remedies by the prejudiced creditor to collect claims
due him before rescission is
resorted to.
Response: Subsidiary remedy

Question 23
Which is the least defective contract?
Response: Rescissible contract

Question 24
Is a remedy granted by law to the contracting parties and even to third
persons, to secure the reparation
of damages caused to them by a contract, even if this would be valid, by
restoration of things to their
condition at the moment prior to the celebration of the contract.
Response: Rescission

Question 25
The following instances are badges of fraud, except:
Response: A sale upon credit by an insolvent debtor.
A transfer made by a debtor after suit has begun and while it is pending
against him.

Question 26
G was appointed as the guardian of M, a minor, who owns a parcel of land
valued at Php1M. M sold the
land only for Php700,000. The contract is
Response: voidable.
Question 27
A sold to B his parcel of land worth Php1M for only half a million pesos.
After the sale and realizing his
damage, S is now seeking to set aside the sale. Decide:
Response: It is rescissible because of the lesion or damage suffered by S.
The sale is valid but unenforceable.

Question 28
The action to rescind contracts in fraud of creditors.
Response: accion pauliana

Question 29
A person, usually a minor, who is under a guardian's charge or protection.
Response: Ward

Question 30
Which of the following contracts is not rescissible?
Response: Those were one of the parties is incapable of giving consent to
a contract.