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St. Paul University Philippines

Tuguegarao City, Cagayan 3500
Seatwork No. 5

Date: January 09, 2019 Time: 8:30PM-9:15PM Subject: RFBT- Contracts

Name:_____________________________________

1. A real 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
c. Consent of the contracting parties, object certain, cause or consideration and formalities required by law
d. Consent of the contracting, object certain, delivery of the object, and formalities required by law
2. A contract where the parties contemplate a real fulfilment, hence, equivalent values are given is known as
a. Commutative contract
b. Gratuitous contract
c. Onerous contract
d. Aleatory contract
3. A contract may be enforced by or against a third person, except
a. In the case of stipulation autrui

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b. When a third person includes another to violate his contract
c. In case of contracts intended to defraud creditors

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d. When the benefit to the third person is merely incidental
4. D borrowed P100,000 from C. The obligation is secured by a mortgage on D’s land and building. C registered the

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mortgage with the Register of Deeds. Thereafter, D sold the land and building to X who was not personally aware
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of the existence of the mortgage at the time of sale since only the photocopy of the transfer certificate of title
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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.
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a. C can collect from D and if D cannot pay, C can foreclose the mortgage although the land and building
are now owned by X
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b. C can collect from D, but if D cannot pay, C cannot foreclose the mortgage because X was not aware of
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the existence of the mortgage at the time he bought the land and building
c. C cannot collect from D. He can only go after the mortgage which was given as security
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d. C cannot foreclose the mortgage because X was not a party thereto

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5. On June 1, 2015, S offered to sell his only car to B for P100,000. B accepted the offer by mailing his letter of
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acceptance on June 10, 2015. On June 12, 2015, B revoked his previous acceptance and mailed his letter of
revocation on the same date. S received the letter of acceptance on June 14, 2015 and the letter of revocation on
June 15, 2015.
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a. The contract was perfected on June 14, 2015 when S received B’s letter of acceptance
b. The contract was not perfected because at the time the acceptance was received, the parties were no
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longer of one mind

c. The contract was perfected on June 10, 2015 when B sent his letter of acceptance.
d. The perfection of the contract retroacts to June 1, 2015 when the offer was made
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6. P appointed A his agent to sell P’s only Honda Civic car for P400,000 cash. 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. 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.
a. The contract was perfected on November 8, 2015 when B sent his letter of acceptance
b. The contract was perfected on November 9, 2015 when A received the letter of acceptance
c. The contract was perfected on November 10, 2015 when A notified P, the true owner of the car, that B
had accepted the offer.
d. The contract was perfected on November 7, 2015, since the acceptance by B retroacts to the date of the
offer.
7. Rockman and Company published an advertisement in the newspapers which reads as follows “IINVITATION TO
BID: Construction of the company’s warehouse located at 123 Luzon Street, Sta. Quitera, Quezon City.” The
advertisement also included the specification of the warehouse to be constructed. Three companies submitted
their bids: ABC Company with a bid price of P4,500,000; DEF Company, P4,750,000; and GHI Company, P5,000,000.
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After considering the financial capability, reputation and experience of the bidders, the kind and quality of
materials to be used and other factors, Rockman and Company accepted the bid of DEF Company. ABC company,
the lowest bidder, now questions the award made by Rockman Company to DEF Company which submitted a
higher bid.
a. The award to DEF Company is voidable because it was only the second lowest bidder.
b. ABC Company should be the winning bidder having submitted the lowest bid.
c. The award to DEF Company is valid because Rockman Company was not bound to accept the lowest
bidder.
d. The award to DEF Company is void by reason of Rockman’s violation of the terms of the invitation to bid.
8. One of the following contracts is not vitiated by intimidation or violence, and hence valid
a. A contract of sale which was signed by a party because his arm was being twisted by a third person
b. A contract of sale which was entered into because the contract party was pointing a gun at his wife
c. A contract where a party was compelled to assign his property to the other to pay a just debt because
the latter threatened to sue him in court if he does not pay his debt
d. A contract of donation of a parcel of land which a party signed because the other party threatened to burn
his house
9. One of the following statements does not pertain to a 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,

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public order or public policy.

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d. The parties do not intend to be bound at all
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A died leaving properties estimated at 1,000,000 to his sons S and T. Subsequently, S sold one-half of his
inheritance to X for P300,000. Although his share was still to be delivered.

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a. The contract is valid since the inheritance is an existing Inheritance
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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
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d. The contract is unenforceable

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11. Rescission of a contract will prosper in one of the following cases. Which is it?
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a. When there are other legal means to obtain reparation of the damages caused
b. When he who demands rescission cannot return whatever he may be obliged to restore
c. When the object of the contract is in the possession of a third person who purchased the property of
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the debtor in bad faith

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d. When the action to bring rescission has prescribed

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12. The defective contracts arranged according to the degree of their defectiveness from the least defective to the
most defective are:
a. Voidable, rescissible, unenforceable, and void contracts
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b. Rescissible, unenforceable, voidable, and void contracts

c. Rescissible, voidable, unenforceable, and void contracts
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d. Unenforceable, rescissible, voidable, and void contracts

13. D owes the following creditors: X, 50,000; Y, 60,000; Z, 90,000. He has assets valued at 400,000. Subsequently, D
donated, among his assets, a parcel of land valued at 250,000 to C. The donation and acceptance were made in a
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public instrument. The donation of land made by D to C is:

a. Rescissible, because it was presumed to have been made in fraud of creditors.
b. Unenforceable, because D was not authorized by his creditors.
c. Void, because the donation and acceptance should be registered.
d. Voidable, because D does not have the free disposal of his property
14. R, the representative of A, an absentee, sold the corn with a value of 30,000, harvested from A’s agricultural farm
for a total price of 50,000. A, whose domicile was subsequently known, was informed of the sale made by G. Based
on the foregoing facts, which of the following statements is incorrect?
a. A may seek payment of an additional 30,000 to recover the damages suffered
b. A may just seek rescission of the sale of the corn to recover the damages he suffered
c. A may seek rescission of the sale of part of the corn and part of the rice to the extent of the damages he
sustained
d. All of the above
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15. The action for annulment must be brought within four years. Which of the following is false with respect to the
reckoning of the beginning of the prescriptive period?
a. In cases of intimidation, violence and undue influence, the period begins from the time the defect in the
consent ceases
b. In cases of fraud, the period begins to run from the discovery thereof
c. In case of mistake, the period begins to run from the time it was committed
d. In cases of contracts entered into by minors or other incapacitated persons, the period runs from the time
guardianship ceases
16. 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 committed
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.
17. 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
b. The incapacitated person when he attains capacity
c. The guardian during the ward’s incapacity
d. The party who is capable of entering into a contract
18. The Statute of Frauds applies only to:

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a. Wholly executed contracts

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b. Contracts wholly or partially executed on the part of the debtor
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c. Contracts wholly or partially executed on the part of the creditor
d. Wholly executory contracts

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19. Severino, orally sold a one-square meter lot for P475 to Benedicto, chairman of Barangay Mapayapa, who was
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officially authorized in barangay resolution to look for and buy a lot where the barangay would construct a
barangay marker. Since Benedicto did not have 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
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but Severino refused to accept it, saying that the sale is unenforceable not being in writing.
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a. The sale of the lot is enforceable although not in writing because the price is less than 500.00
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b. The sale is enforceable because Benedicto was duly authorized to buy the lot through a resolution which
is in writing
c. The sale of lot is void not being in a public instrument
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d. The sale is unenforceable since the sale of real property must be in writing regardless of the price to be
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enforceable.
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20. D was driving on his way to Manila from the province when he suffered a busted tire. Not having any spare tire,
he went to a nearby car spare parts store to buy a new tire. However, he did not have sufficient money with him
so he phoned G, his friend, who happened to know S, the store owner. G then instructed D to give to S the
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telephone through which G told S “Don’t worry. If D cannot pay, just charge me.” D was thus able to buy a new
tire for 6,000 for which S issued D as sales invoice.
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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
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c. 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.

For items 21-30, state the status of the contract from among the following choices

21. An oral contract of sale of a computer worth 20,000 between S, a minor, and B, an insane person. The computer
has been delivered and the price has been paid. Unenforceable
22. A written contract of sale of a computer worth 20,000 between S(seller), a minor, and B (buyer), an insane person.
The computer has not been delivered and the price has not been paid. Unenforceable
23. An oral sale of a lot worth 50,000 between S(seller), and B(buyer). S has not delivered the lot, but B has given a
downpayment of 5,000 Valid and Enforceable
24. A deed of sale of a lot worth 100,000 between S(seller) and B(buyer). S has not delivered the lot, and B has not
given any payment. The sale is in writing but has not yet been acknowledged by the parties before a notary public.
Valid and Enforceable
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25. A written contract of sale of a specific car between S and B. The car actually belonged to O and was sold by S to
the name of O without the latter’s authority. The car is still in the possession of O although B has remitted the
price of 60,000 to S. Unenforceable
26. A certificate of bank deposit entered into between D, depositor, and B, bank. D has really no deposit in the bank
but the bank made it appear that D had a deposit so that D could use the certificate of bank deposit to apply for
a visa at a foreign embassy. Void
27. A written contract of sale entered into by G, guardian, in behalf of his ward M, a minor, and B, 25 years old. The
sale had for its object a specific ring with a value of 40,000 belonging to M but was sold by G for only 28,000. B
has paid the price in full and obtained possession of the ring. Rescissible
28. A written contract of sale entered into by G, guardian, is in behalf of his ward M, a minor, and B, 25 years old. The
sale had for its object a specific ring with a value of 40,000 belonging to M but was sold by G for only 30,000. B
has paid the price in full and obtained possession of the ring. Valid and Enforceable
29. A written contract of sale of a lot between S, seller, and B, buyer, for 50,000. The lot is the only property of S who
sold it to defraud C, his creditor. B was aware of the fraudulent intent of S in selling the lot to him. Rescissible
30. A written contract of sale of a lot between S, seller, and B, buyer, for 50,000. The lot is the only property of S who
sold it to defraud C, his creditor. B was not aware of the fraudulent intent of S in selling the lot to him. Valid and
Enforceable

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Prepared by:

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Harley Bernieson D. Cortes
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Instructor
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