For Nos. 1-37, determine what kind of defective contracts are the following: 1.

Contract of sale of “shabu”. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

2. Contract to manipulate the result of the election through hacking. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

3. Contract of sale between husband and wife. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

4. A simulated real estate mortgage. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

5. A contract whereby X agreed to be the mistress of Y for P30,000.00 monthly

allowance. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

6. A contract whereby the debtor agreed to work for the creditor for free as long as the
debtor has not paid his debt. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent
7. A lease contract where it is stipulated that the lessor can forcibly evict the lessee for
non-payment of rent. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

8. A contract of sale of the seller’s future inheritance from his parents. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

9. A contract whose cause or object did not exist at the time of the transaction. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

10. A contract of sale of a slightly used human brain. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

11. A contract of barter or exchange of a human heart for a human liver. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

12. A contract whereby the City of Baguio donated Bakakeng Road to SLU. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

13. A contract whereby A will kill B’s mother-in-law in exchange for two-piece Jollibee
Chicken Joy with fries. *
A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

14. A contract between a 16 years old and a 17 years old. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

15. A contract between a 16 years old and an insane or demented person. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

16. A contract between a 17 years old and a deaf-mute who does not know how to
write. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

17. A contract whereby A, without authority, borrowed money for and in the name of
B. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

18. A gave B the authority to lease his house and lot to C. But B instead sold the
house and lot to C. The sale is: *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

19. An oral contract that by its terms is not to be performed within a year from its
making. *
A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

20. An oral promise to pay answer for the debt of another. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

21. An oral pre-nuptial agreement. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

22. A verbal contract of sale of a cellular phone worth P1,000.00 when no payment
and delivery have yet made. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

23. A verbal executory contract of lease of a boarding house for a term of two years. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

24. A verbal contract of sale of farmland for P50,000.00 when no payment and delivery
have yet made. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent
Other:

25. A written contract of sale of a laptop computer between a 25 years old and a 17
years old. *
A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

26. A written contract of sale of a motorcycle between a 25 years old and a drunk 20
years old. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

27. A written contract of sale of a house and lot between a 45 years old demented
person who acted during lucid interval and a 50 years old under hypnotic spell. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

28. A written contract of sale of a fishpond where the seller’s consent was obtained
through intimidation. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

29. A contract where the debtor forced the creditor to loan him P10,000.00. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

30. A contract where a teacher unduly influenced his student to give his cellular phone
to him. *

A. Rescissible
B. Voidable
C. Unenforceable
d. Void or Inexistent
31. A contract where the seller made the buyer believed that what he sold is a brand
new cellular phone when in fact it is a second-hand. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

32. A contract where the donor donated P10,000 to the donee whom he thought has
cancer. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

33. A written contract of sale where the guardian sold the minor’s P1,000,000
condominium unit for only P500,000. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

34. A written contract of sale entered into by a debtor to defraud his creditors who
cannot collect their claims in any other manner. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

35. A written contract of sale of a car subject of a case which the defendant sold
without the court’s approval. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

36. A written contract of donation of shares of stock a father made in favor of his
daughter, where the father left no other properties for his creditors. *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

37. The following defective contracts may be ratified except: *

A. Rescissible
B. Voidable
C. Unenforceable
D. Void or Inexistent

38. A voidable contract may be annulled within how many years? *

A. 2
B. 4
C. 6
D. no prescription/limitation

39. A rescissible contract may be rescinded within how many years? *

A. 2
B. 4
C. 6
D. no prescription/limitation

40. A void contract may be nullified within how many years? *

A. 2
B. 4
C. 6
D. no prescription/limitation

41. The following are the building blocks of a contract, except: *

A. Cause.
B. Consent
C. Document
D. Object

42. A law of English origin that required certain contracts to be in writing to be

enforceable. *

A. Statute of Limitations
B. London Statute
C. Statute of Frauds
D. Statute of Liberty

43. A contract that is perfected by the delivery of its object or subject matter. *
A. Consensual
B. Bilateral
C. Real
D. Aleatory

44. A contract that gives rise to reciprocal obligations for both parties. *

A. Consensual
B. Bilateral
C. Real
D. Aleatory

45. Statement 1 (S1). Freedom to contract means that the parties themselves
determine the terms and conditions of their contract. Statement 2 (S2). The only
limitation of this freedom is that the terms and conditions should not be contrary to
law. *

A. True, True
B. True, False
C. False, True
D. False, False

46. S1. Contracts are binding and effective only between the parties, their heirs and
assigns. S2. Thus, an heir of a debtor is liable to the creditor for the full amount of the
obligation. *

A. True, True
B. True, False
C. False, True
D. False, False

47. S1. A contract may contain some stipulations in favor of a third. S2. Such
stipulation is called “stipulation pour artruy”. *

A. True, True
B. True, False
C. False, True
D. False, False

48. S1. A contract must bind both contracting parties. S2. A third person who induced
a party to violate the contract shall be liable for damages to the other contracting
party. *

A. True, True
B. True, False
C. False, True
D. False, False

49. S1. A mere expression of an opinion does not signify fraud. S2. Misrepresentation
by a third person does not vitiate consent. *

A. True, True
B. True, False
C. False, True
D. False, False

50. S1. An acceptance of the offer may be express or implied. S2. A qualified
acceptance is not really an acceptance but a counter-offer. *

A. True, True
B. True, False
C. False, True
D. False, False

51. S1. Misrepresentation made in good faith is not fraudulent but may constitute an
error. S2. An incidental fraud only obliges the person employing it to pay damages. *

A. True, True
B. True, False
C. False, True
D. False, False

52. S1. In alternative obligations, it is the choice of which prestation to perform made
by the debtors that will convert the alternative obligation into a pure or simple one. S2:
In facultative obligations, the right of substitution may be transferred to the creditor. *

A. True, True
B. True, False
C. False, True
D. False, False

53. S1. The creditor may be compelled to accept payment in checks as long as the
check is negotiable. S2. An obligation payable “should the client die of leukemia” is an
obligation with a period. *

A. True, True
B. True, False
C. False, True
D. False, False
54. S1. In novation through expromision, there can be a revival of the original debtor’s
obligation should the new debtor’s obligation turn out to be insolvent and such is of
public knowledge. S2. In alternative obligations, what converts the same into a pure or
simple obligation is that the choice of prestation to be performed by the debtor. *

A. True, True
B. True, False
C. False, True
D. False, False
Other:

55. S1. The concurrence of more than one creditor or more than one debtor in one
and the same obligation implies solidarity. S2. A joint obligation is the same as a joint
and several obligation. *

A. True, True
B. True, False
C. False, True
D. False, False

56. The stages in the life of a contract are in the following order: *

A. Egg, Larva, Pupa

B. Negotiation, Perfection, Termination
C. Proposal, Negotiation, Delivery
D. Offer, Acceptance, Performance

57. A offered to sell his orchard to B for P1,000,000.00. B asked for 5 days or until
December 19, 2020, to decide whether or not to accept A’s offer. On December 15,
2020, A told B that he is withdrawing the offer to sell. *

A. A cannot withdraw the offer because the option period has not yet expired.
B. A cannot withdraw the offer because the choice belongs to B.
C. A can withdraw the offer because B has not yet accepted his offer.
D. A can withdraw the offer because an advertisement is a mere invitation for B to
make a proposal.

58. A is convicted of theft for stealing B’s laptop computer worth P20,000.00. The court
ordered A to return the laptop computer to B or otherwise pay P20,000.00. A reasoned
out that his obligation is already extinguished because the laptop computer perished in
an earthquake. *
A. A is correct because the specific object was lost due to a fortuitous event.
B. A is correct because the laptop computer was lost before he was convicted.
C. A is not correct because his obligation to return the laptop computer arises from
crime.
D. A is not correct because a generic real obligation does not perish.

59. The cause or consideration in an onerous contract. *

A. the prestation by the other party

B. the service or benefit remunerated
C. the object to be given in exchange
D. the liberality of the benefactor

60. The cause or consideration in a remuneratory contract. *

A. the prestation by the other party

B. the service or benefit remunerated
C. the object to be given in exchange
D. the liberality of the benefactor

61. The cause or consideration in a gratuitous contract. *

A. the prestation by the other party

B. the service or benefit remunerated
C. the object to be given in exchange
D. the liberality of the benefactor

62. Any damage caused by the fact that the price is unjust or inadequate. *

A. Ex Promision
B. Ad Infinitum
C. Lesion
D. the liberality of the benefactor

63. S1. An obligation is extinguished if its prestation becomes legally impossible with
or without the debtor’s fault. S2. A positive personal obligation is also extinguished if it
becomes so difficult to be manifestly beyond the parties’ contemplation. *

(A) True, True

(B) True, False
(C) False, True
(D) False, False

64. Meeting in one person of the characteristics of both the debtor and the creditor in
one and the same obligation extinguishes the obligation by way of: *
A. Novation
B. Merger or confusion
C. Compensation or set-off
D. Condonation or remission

65. An absolutely simulated or fictitious contract is: *

A. Valid
B. Void
C. Unenforceable
D. None of the above

66. It is an obligation based on positive law which confers to the obligee the right to
enforce performance. *

A. Natural Obligation
B. Legal Obligation
C. Civil Obligation
D. Moral Obligation

67. The act of abandoning or transferring all the debtor’s property to his creditors so
that the creditors may sell them, and out of its net proceeds to recover their claim is
called: *

A. Condonation
B. Payment by cession
C. Tender of payment and consignation
D. Dacion en pago

68. It is an obligation wherein various things are due and the complete performance of
all of them is necessary to extinguish the obligation. *

A. Pure or simple obligation

B. Conjunctive obligation
C. Alternative obligation
D. Facultative obligation

69. Payment of the obligation by a solidary debtor shall not entitle him to
reimbursement from his co-debtors. *

A. If such payment was made after the obligation is due.

B. If such payment was made after the obligation has prescribed or become illegal.
C. If such payment was made in compliance with the demand made to him by all the
creditors.
D. If such payment was made after the obligation has become due and demandable
and notice of payment was made only to him.
70. It is the delivery by the debtor of a specific thing to the creditor in payment of an
obligation consisting of money. *

A. Assignment of rights
B. Dation in payment
C.Tender of payment and consignation.
D. Application of payment

71. Employer promised to increase Employee’s salary starting January 2020.

However, Employer did not fulfill his promise. Employee threatened Employer that he
will complain to the Department of Labor and Employment if his salary will not be
increased. Thus, Employer raised Employee’s salary against his will. Is Employer’s
consent vitiated by the vice of threat? *

A. Yes, because Employer has the choice whether to increase Employee’s salary or
not.
B. Yes, because Employer increased Employee’s salary involuntarily.
C. No, because Employee threatened to resort to legal means to enforce his claim.
D. No, because Employer was the one who promised to increase Employee’s salary.

72. S sold his lot to B. The lot is the subject of a case filed by X against S. S did not
disclose this fact to B. Is S liable to B for fraud? *

A. Yes, because S has the obligation to reveal the fact to B even if the latter did not
ask.
B. Yes, because the sale involves transfer of real rights to the property.
C. No, because S did not say and do anything to convince B to buy the lot.
D. No, because B is bound by the rule of “caveat emptor” or “buyer beware”.

73. A saw a TV advertisement of a body cologne showing women getting attracted to

and running after the man who used the said product. Believing what he saw on TV, A
bought the cologne, wear it and walked along Session Road. He was disappointed
when women gave no attention to him. *

A. A can complain for damages on ground of fraud because the advertisement is not
true.
B. A can complain for damages because the advertisement is an exaggeration.
C. A cannot complain because the advertisement is in the nature of a “trader’s talk” or
“dealer’s talk”.
D. A cannot complain because there is no contract between him and the cologne’s
manufacturer.

74. D bound himself to deliver a Sony LED TV with Serial No. WERT-35 to C and to
repair C’S washing machine. D failed to perform both. *
A. C can compel D to deliver the TV but not to repair the washing machine.
B. C can compel D to repair the washing machine but not to deliver the TV.
C. C can compel D to perform both.
D. C cannot compel D to perform both.

75. D is supposed to deliver a horse named “Red” to C on December 10, 2020. On the
due date, D did not deliver the horse despite C’s demand. The following day Red was
struck by lightning and died. Is D still obliged to C? *

A. No, his obligation is extinguished due to a fortuitous event.

B. Yes, because D is already in default when Red perished.
C. Yes, D must give C another horse of the same kind.
D. No, because the horse was at fault.

76. BBCCC Cooperative paid taxes to the City of Baguio. However, it turned out that
BBCCC is unaware that it is tax-exempt under the law. May BBCCC demand a tax
refund? *

A. No, because it is negligent in paying the City of Baguio.

B. Yes, because the City of Baguio’s obligation to refund arises from the National
Internal Revenue Code.
C. Yes, because there was a lawful management tantamount to Negotiorum Gestio.
D. Yes, because the City of Baguio received the payment without right to do so.

77. A issued to B a check payable to the order of “CASH”, which makes the check
payable to whoever holds it. B used the check to pay his obligation to C. Then, C used
the check to pay his obligation to A. *

A. A’s obligation is extinguished because he became the creditor and debtor of

himself.
B. A’s obligation is extinguished because his obligation to B is compensated by B’s
obligation to C.
C. A’s obligation is not extinguished. He still obliged to pay B but he can demand
payment to C.
D. A’s obligation is not extinguished because B and C do not have similar interest.

78. A and B issued a P10,000.00 promissory note payable to C or bearer, which

makes the promissory payable to whoever holds it. C used the promissory note to pay
his obligation to D. In turn, D used the promissory note to pay his P5,000.00 loan from
A. *

A. A and B’s obligation to C is totally extinguished by merger.

B. Only A’s obligation is extinguished. B still owes C P5,000.00.
C. A and B’s obligation is not extinguished. They are still obliged to pay C but they
can demand payment to D.
D. A and B’s obligation is not extinguished because their obligation is not solidary.

79. D is obliged to sell and deliver a particular motorcycle to C on or before December

10, 2020. On December 9, 2020, the motorcycle was lost while parked in D’s garage. *

A. D is still liable to C unless he can prove that the loss was not due to his fault.
B. D is still liable to C because the loss was due to his negligence.
C. D’s obligation is extinguished due to fortuitous event.
D. D’S obligation is extinguished because it becomes physically impossible for him to
deliver the motorcycle.

80. D is obliged to sell and deliver a particular motorcycle to C on or before December

10, 2020. On due date, D did not deliver the motorcycle despite C’s demands. The
following day the motorcycle was totally destroyed by a typhoon. *

A. D is still liable to C unless he can prove that the loss was not due to his fault.
B. D is still liable to C because the loss happened when he was already in default.
C. D’s obligation is extinguished due to fortuitous event.
D. D’S obligation is extinguished because it becomes physically impossible for him to
deliver the motorcycle.