CASTILLO, Adrian Clark F.

ME70-2 / C1

CONTRACT EXAM
I. MULTIPLE CHOICE - *Answer in bold
1. One is not a characteristics of a contract: a) autonomy; b) mutuality; c) independence; d) relativity
2. Characteristics of void contract: a) curable; b) subject of ratification; c) subject to prescription; d) none
of the above
3. Stages of contract include: a) consummation; b) negotiation; c) perfection; d) all of the above
4. One of the following is a natural element of a sales contract. a) terms of payment; b) rate of interest;
c) place of delivery; and d) warranty against eviction
5. As a rule, a contract of sale is perfected: a) upon compliance with the requirement of the law as to
form; b) upon the delivery of the object of the contract; c) upon demand; and d) upon consent
6. A meeting of minds between two persons whereby one binds himself with respect to the other to give
something or to render some service is known as: a) obligation; b) consent; c) contract; d) stipulation
7. The elements of a contract without which a contract would not exist are known as: a) accidental
elements; b) natural elements; c) essential elements; d) special elements
8. A real contract has the following essential elements: a) consent of contracting parties, object certain &
cause or consideration; b) consent of contracting parties & cause or consideration; c) consent of
contracting parties, object certain, cause or consideration & delivery of object; d) consent of
contracting parties, object certain & cause & formalities required by law
9. Elements that exist only when the contracting parties expressly provide for them are known as: a)
natural elements; b) essential elements; c) accidental elements; d) original elements
10. Contracts take effect only between the contracting parties, their assigns and heirs, except in cases
where the obligations and rights arising from the contract are not transmissible by their nature, or by
stipulation or provision of law. This principle is known as: a) obligatory force of contract; b) mutuality
of contract; c) relativity of contract; d) liberty of contract
11. The contract must bind both contracting; its validity or compliance cannot be left to the will of one of
the parties. This principle of contract is known as: a) relativity of contract; b) mutuality of contract; c)
obligatory force of contract; and d) liberty of contract
12. The principle that contracts are perfected by mere consent is known as: a) consistency of contract; b)
consensuality of contract; c) consummation of contract; d) mutuality of contract
13. One of the following is a real contract. a) barter; b) sale; c) donation; and d) deposit
14. B bought a baby boy from S. B knew that the baby boy was his illegitimate son from a woman named
W, and which W sold to S. The contract between B and S is: a) valid; b) void; c) unenforceable; d)
voidable
15. Which among the following is a void contract? a) contract between S, insane, and B, 17 years old; b)
contract of sale for marijuana; c) contract of sale where the buyer pointed a gun to the wife of the
seller for the latter to sign the deed of sale; d) contract of sale in which the buyer twisted the arm of
the seller for the latter to sign the deed of sale.

Test II – Matching Type. Indicate your answer by writing the letter that best describes the following terms:

1. Voidable Contract A 6. Statute of Frauds L I

2. Real contract K 7. Rescissible Contract H
3. Void Contract C B 8. Essential elements of contract D
4. Unenforceable Contract G 9. Mutuality of contract E
5. Ratification J 10. Consensual of contract F
 A. Valid but can be annulled voidable contract
B. Enforceable against the whole world unenforceable contract
C. Contract entered into without authority void contract
D. An absence of which a contract will not exist
E. That it must bind both contracting parties and that its validity or compliance cannot be left
to the will of one of them
F. A contract that is perfected by mere consent
G. Requires writing to prove a contract
H. Contract not subject to ratification
I. Contract arising from defrauding a creditor
J. A cure for unenforceable and voidable contract
K. The delivery of the object is required for the perfection
L. Contract must be in a certain document

Test III – TRUE OR FALSE. Write “T” if the statement is true, and “F” if the statement is false.
1) A voidable contract is binding until it is annulled by a court. T
2) A contract is not a source of obligation. F
3) Obligations arising from contracts have the force of law between the contracting parties. T
4) Statute of Frauds is applicable to executory contracts. T
5) Deed of donation must be notarized to be valid. T
6) Causal fraud makes the contract voidable. T
7) Contracts entered into with duress or with force or violence are valid. F
8) Donation is a type of gratuitous contract. T
9) Rescission is a proper remedy for a minor suffering from a lesion. F
10) When the object is outside the commerce of man, the contract becomes unenforceable. T
11) Contract of sale of real property must be notarized to be valid. T
12) Parties’ agreement to a contract is not subject to law. F
13) Annulment is proper when the parties’ meeting of mind is not properly expressed in a contract.
F
14) A contract becomes void when it is entered by an agent without authority T
15) All contracts need to be writing. T

Test IV – Essay (Use legal principles to justify your answer, absence of which earns a minimum point
1. X sold Y a kilo of Marijuana on installment. Y failed to pay. Can X sue Y for payment?
2. D borrowed P500,000 from C. D died without having paid his loan obligation to C. He left S, his son and
heir, properties worth P400,000. Can C recover from S?

-Good Luck & God bless-

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