TAGUIG CITY UNIVERSITY

Gen. Santos Avenue, Central Bicutan, Taguig City

Test I. TRUE OR FALSE. Write the word “TRUE” if the statement is true, and the word
“FALSE” if the statement is false.
1. Reformation is not available if the contract is void.
2. In terms of a contract are clear and leave no doubt upon the intention of the
contracting parties, the literal meaning of the stipulation shall contract.
3. Rescission cannot take place when the object of the contract is legally in the
possession of third persons who acted in bad faith.
4. A voidable contract is binding until is annulled by a proper action in court.
5. Ratification requires the conformity of the contracting party who has no right to bring
the action for annulment.
6. Contract that are required to be in writing under the statute of Frauds may be
enforced if benefits have been accepted under them.
7. Unenforceable contracts cannot be assailed by third persons.
8. When the agreement is not illegal per se but is merely prohibited, and the prohibition
by law is designated for the protection of the plaintiff, he may, if public policy is
enhanced, recover what he has paid or delivered.
9. A contract is rendered voidable although a party gave his consent because of a
reasonable and well-grounded fear of an imminent and grave evil upon the property
of his descendant.
10. Rescission cannot be availed of in the case of a last will and testament.

Test II. Essay

1. What are the different classes of contracts?
2. What are the limitations upon the right of the contracting parties to establish such
stipulations, Clauses, terms and conditions as they may deem convenient?
3. What are the different kinds of innominate contracts and how are they regulated?
4. What is meant by a stipulation pour autrui? What requisites must concur in order
that such a stipulations may be enforced? What is the form of the acceptance by
the third person or beneficiary?
5. What are the different phases or stages in the life or biology of a contracts?
6. Who are prohibited from entering into a contract?
7. What is the doctrine of reformation of instruments under the Civil Code? What
requisites must concur in order that an instrument may be reformed? What is the
difference between reformation of instruments and annulment of contracts?
8. What are the different classes of defective contracts.
Test III. Problem
1. A took up law at the Arellano University. He left the University and enrolled for
the last semester of his fourth in the Abad Santos Law School. Subsequently, he
passed the bar examinations. During his stay at the Arellano University, he
passed the bar examinations. During his stay at the Arellano University, he was a
constant recipient of scholarship grants. However, he was made to sign a waiver
of his right to transfer to another school unless he refunds to the University the
equivalent of his scholarship grants. Since, in taking the bar examinations, he
had to secure his transcript of records from the University, he was required to
make a refund, which he did, but under protest. Subsequently, he brought an
action to recover the amount which he had paid. Will the action prosper?

2. A offered to sell his automobile to B for P 50, 000. After inspecting the
automobile, B offered to buy it for P 50, 000. This offer was accepted by A. The
next day, A offered to deliver the automobile, but B, being short of funds, secured
a postponement of the delivery, promising to pay A the price upon arrival in this
port of the streamer, Helena.” The steamer, however, never arrived because it
was wrecked somewhere off the cost of Samar.
(A) Is there a perfected contract in this case? Why?
(B) Is the promise to pay made by B conditional or with a term? Why?
(C) Can A compel B to pay the purchase price and to accept the automobile?
Why?
3. On March 5, 2020, A wrote a letter to B offering to him the lease of a building. On
March 6, 2020, at 1:00 P.M. sent a letter of acceptance which h was received by
A at 4:00 P.M. that day. But at 2:00 P.M., A had already sent B a letter of
withdrawal of the offer which was received by B at 5:00 P.M. Was the contract
perfected ? Reasons?
4. Explain the importance of Obligations and Contracts in business. (At least 150
words)