DE LA SALLE UNIVERSITY

OBLIGATIONS AND CONTRACTS: RESCISSIBLE CONTRACTS

PRACTICE QUIZ

DE LA SALLE
UNIVERSITY

OBLIGATIONS
AND CONTRACTS:

RESCISSIBLE
CONTRACTS

PRACTICE QUIZ
 DE LA SALLE UNIVERSITY
OBLIGATIONS AND CONTRACTS: RESCISSIBLE CONTRACTS
PRACTICE QUIZ
 DE LA SALLE UNIVERSITY
OBLIGATIONS AND CONTRACTS: RESCISSIBLE CONTRACTS
PRACTICE QUIZ

Question 1
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
Answer: Rescission

Question 2
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.
Answer: The contract between D and X is binding.

Question 3
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
Answer: Valid

Question 4
This kind of defective contract refers to that contract which is validly agreed upon because all the
essential elements exist, but courts can nullify it when there is damage or prejudice to one of the parties
or to a third person. Its enforcement would cause injustice by reason of some external facts.
Answer: Rescissible contract

Question 5
A defective contract where damage or lesion is essential is
Answer: Rescissible

Question 6
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 May the donation be rescinded?
Answer: No, because the debts were incurred after the donation.

SAME QUESTION:
Question 7
The following instances are badges of fraud, except:
Answer: A sale upon credit by a solvent debtor.
 DE LA SALLE UNIVERSITY
OBLIGATIONS AND CONTRACTS: RESCISSIBLE CONTRACTS
PRACTICE QUIZ

Question 8
The following instances are badges of fraud, except:
Answer: The fact that the consideration of the conveyance is inadequate

SAME QUESTION:
Question 9
Three of the following are rescissible, which is not?
Answer: None of the above

Question 10
D, fearing that his creditor C, would go after his only parcel of land to satisfy his claim for payment of D's
debt, sold his land to X who did not know of D's intention. Decide.
Answer: C cannot ask for the rescission of the sale

Question 11
Three of the following are rescissible, which is not?
Answer: Contract of sale and the price is unusually inadequate resulting to lesion

Question 12
An accion pauliana presupposes the following, except:
Answer: None of the above

SAME QUESTION:
Question 13
The following are rescissible contracts, except:
Answer: Those where one of the contracting party is incapacitated

Question 14

Which of the following contracts is rescissible?

Answer: Those which are entered into by guardians whenever the wards whom they represent suffer a
lesion of more than ¼ of the value of the object of the contract

Question 15
The following are rescissible contracts, except:
Answer: Those covered by statute of frauds
 DE LA SALLE UNIVERSITY
OBLIGATIONS AND CONTRACTS: RESCISSIBLE CONTRACTS
PRACTICE QUIZ

SAME QUESTION:
Question 16
The following are the requisites for action to rescind contracts in fraud of creditors, except:
Answer: The third person who received the property conveyed, if it is onerous title, has been in good
faith

The following are the requisites for action to rescind contracts in fraud of creditors, except:
Answer: The creditor has other legal remedy to satisfy his claim.
Question 17
It is when the debtor has more liabilities than his assets.
Answer: Insolvency

Question 18
The following are defective contracts, except:
Answer: None of the above

Question 19
This contract will cause damage or injury to one of the contracting parties or to a third person.
Answer: Rescissible contract

Question 20
To defraud his creditors, Ana contracted with Bolay by selling a land to Bolay. Bolay now seeks to
register the land with the Register of Deeds. Xeus, a creditor of Ana seeks to prevent registration on the
ground that the contract is rescindible. Despite Xeus' objection, may the land be registered based on the
contract in Bolay's name?
Answer: The land can be registered based on the contract because the contract is not yet rescinded

Question 21
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?
Answer: Yes, because the contract although rescissible is valid

Question 22
 DE LA SALLE UNIVERSITY
OBLIGATIONS AND CONTRACTS: RESCISSIBLE CONTRACTS
PRACTICE QUIZ

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.
Answer: Both contracts are valid and enforceable

Question 23
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
Answer: Voidable

Question 24
Which is the least defective contract?
Answer: Rescissible contract

Question 25
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?
Answer: No, because the creditor can collect the credit due him

Question 26
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:
Answer: The sale is valid, binding, and enforceable

Question 28
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.
Answer: Rescission

Question 29
The following successive measures must be taken by a creditor before he may bring an action for
rescission of an allegedly fraudulent sale, except:
 DE LA SALLE UNIVERSITY
OBLIGATIONS AND CONTRACTS: RESCISSIBLE CONTRACTS
PRACTICE QUIZ

Answer: Immediately file an action for annulment of sale

Question 30
This means bringing the parties back to their original status prior to the inception of the contract.
Answer: Mutual restitution

Question 31
A, guardian of B, sold B’s house and lot worth Php480,000 for Php240,000.
Answer: The contract can be rescinded because of inadequacy of price
Question 32
S owns an oil painting. Being in need of money, S sold the painting to B for P10,000. After the sale, it
was discovered that the painting was valuable and worth P50,000.
Answer: B is entitled to the benefit of the contract because it is valid and binding
Question 33
Statement No. 1 – Rescission creates the obligation to return the things which were the object of the
contract, together with their fruits, and price with its interest consequently, it can be carried out only when
he who demands rescission can return whatever he may be obliged to restore.
Statement No. 2 - Neither shall rescission take place when things which are the object of the contract are
legally in the possession of third persons who did not act in bad faith.
Answer: Both are true
Question 34
31. A person, usually a minor, who is under a guardian’s charge or protection.
Answer: Ward

Question 35
32. The exhaustion of all remedies by the prejudiced creditor to collect claims due him before rescission
is resorted to.
Answer: Subsidiary remedy

Question 36
33. Rescission of contract can take place in this case:
Answer: When he who demands rescission can return whatever he may obliged to restore.
Question 37
The action to rescind contracts in fraud of creditors.
Answer: accion pauliana

Question 38
Gorgonio, legal guardian of Nino, 13 years old, sold Nino’s property worth Php100,000 for Php70,000
 DE LA SALLE UNIVERSITY
OBLIGATIONS AND CONTRACTS: RESCISSIBLE CONTRACTS
PRACTICE QUIZ

only, without court approval. The contract is

Answer: Voidable
Question 39

Which of the following contract is not rescissible?

Answer: Those were one of the parties is incapable of giving consent to a contract.

Question 40
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.
Answer: The contract is rescissible.
Question 41
Entails the return of the benefits that each party may have received as a result of the contract.
Answer: Mutual restitution