MULTIPLE CHOICE 1 4 of5 points

w 1. Statement 1: If a valid contract is novated to a void contract, both Ww

contracts are considered void. Statement 2: The contract does not
become voidable if persons not party to the contract did the violence or
intimidation.

©) a Only Statement 1 is true

© 8. Only Statement 2 is true

© . Both are true

@ 4. Both are false v

w 2. Lentered into a contract of lease with X.T, the clerk of L, typed the *1/1
document. Due to T’s negligence, the document made was that of sales
instead of lease.

© a. The remedy is annulment

© }. Parties may go to court for interpretation

O c. Parties may enforce their right because it is enforceable

(@) 4. None of the above a4

“ 3. Sownsan oil painting. Being inneed of money, sold the painting to *1/1
B for P1,000.00. After the sale discovered that the painting was
valuable and worth P5,000.

O a. S may rescind the contract on ground of lesion or inadequacy of cause

(©) b. S$ may annual the contract on ground of fraud

O c. S may annual the contract on the ground of error

@ d. Bis entitled to the benefit of the contract because it is valid and binding ar

4. Statement 1: When one party is insane and the other isa minor, the *1/1
contract is unenforceable.Statement 2: When one party is
incapacitated, the contract is void.

@) a. Only Statement 1 is true 4

©) 8. Only Statement 2 is true

©) . Both are true

OC d. Both are false

Sw” § Sands. orally aoreed that 5S would cell and B would buv 5's radio for *o0/1
* 5. Sand B, orally agreed that $ would sell and B would buy S's radio for *0/1
P400 two years from the date of the agreement. At the end of two
years, 5 refused to deliver the radio although B was willing to pay.

O a. The contract falls under the Statute of Frauds, therefore unenforceable

(@®) b. No Statute of Frauds because the price is less than P500 x

O c. B can compel § to deliver because he is willing to pay

O d. The object is movable property, oral contract is unenforceable

Correct answer

@ a. The contract falls under the Statute of Frauds, therefore unenforceable

Multiple Choice 2 3 of 5 points

6. Inacontract as written whereby D promises to payC P10,0000n *1/1

September 15, 2005, the consideration received by D is not stated in
the contract.

@ a. The contract is valid because the cause is always presumed to exist wv

© b. The contract is valid so long as it is in writing

O c. The contract is valid because cause is not essential to a contract

O d. The contract is valid because the cause is not stated

 7. Statement 1: When both parties to an illegal contract are equally ion Fa
guilty, they are said to be in pari delictoStatement 2: A stipulation pour
autrui is for the benefit of somebody who is not a party to the contract.

©) a. Only Statement 1 is true

© 68. Only Statement 2 is true

@) c. Both are true av

O d. Both are false

“ 8. Statement 1: Without a contract, a person cannot be liable to *o/1

another.Statement 2: Void contracts in certain cases are subject to
ratification.

(@) a. Only Statement 1 is true x

© 8. Only Statement 2 is true

© c. Both are true

(©) 4. Both are false

Correct answer

@) 4. Both are false

Y 9. Statement 1: A natural obligation gives a right of action to compel *1/1
their performance.Statement 2: Payment of a prescribed debt is a
natural obligation.

© a. Only Statement 1 is true

@ 8. Only Statement 2 is true A

© c. Both are true

© 4. Both are false

X 10. Statement 1: In a void contract where there is no criminal intent, the *0/1
guilty party can recover what he has given by reason of the
contract.Statement 2: Contract agreed to during a hypnotic spell is
void.

© a. Only Statement 1 is true

© 8B. Only Statement 2 is true x

© c. Both are true

© 4. Both are false

Correct answer

© d. Both are false

 11. Statement 1: The action for rescission can be instituted whenthe *1/1
party suffering damages has other legal means to obtain reparation for
the same.Statement 2: One of the requirements for rescission of
contracts in fraud to creditors, the credit must be prior to the contract
to be rescinded.

(©) a. Only Statement 1 is true

(@) 8. Only Statement 2 is true S

© . Both are true

(©) d. Both are false

* 12. Ssold his car to B because of the intimidation of B. * o/1

@) a. B has only four years to ask for annulment <

O b. S can ratify the sale with the conformity of B

O c. B has the right to ask for annulment

©) 4.8 can ratify the contract.

Correct answer

@) 4. Scan ratify the contract.

* 13. Choose the contract which is voidable * o/1

© a. those undertaken in fraud of creditors when the latter cannot in any other x
manner collect the claims due them

(©) ». those were the consent is vitiated by mistake

O c. those whose object is outside the commerce of man

O d. those were both parties are incapable of giving consent to a contract

Correct answer

(@) b. those were the consent is vitiated by mistake

14. Statement 1: Dolo causante shall make a contract =1/1

voidable.Statement 2: Dolo incidente only obliges the person employing
it to pay damages.

© a. Only Statement 1 is true

©) 8. Only Statement 2 is true

@) c. Both are true A

() d. Both are false

~ 15. Acontract intended to defraud creditors. * Wi

~~ 15. Acontract intended to defraud creditors. * 1/1

(@) a. rescissible Sf

O b. voidable

© c. unenforceable

© 4. void

mc4 ae yt

* 16. Ois the owner of a car which was sold by $ without authorization in *0/1
favor of B. The contract between $ and Bin so far as O is concerned is

© a.rescissible

©) ». voidable

(©) c. unenforceable

@) 4. void x

Correct answer

@ c. unenforceable
 17. Anoral contract of guaranty * WV

O a. rescissible

© ». voidable

@) c. unenforceable v

O d. void

* 18. Statement 1: The Statute of Fraud does not govern contracts *O/1
performed totally or partially. Statement 2: The Statute of Fraud applies
in contracts of loan.

(©) a. Only Statement 1 is true

(@) 8. Only Statement 2 is true x

© . Both are true

(©) d. Both are false

Correct answer

@) 4. Only Statement 1 is true

* 19. Gwas appointed guardian of §, the latter being 16 years old.S sold *0/1
his parcel of land in writing to B valued at 100,000 for 75,000, suffering
lesion by 1/4 of the value. What is the status of the contract:

@) a. rescissible x

O b. unenforceable

O c. enforceable

O d. voidable

Correct answer

@ d. voidable

* 20. DowesC 10,000. But the debt soon prescribes. Later X, against *o/1
the consent of D pays C 10,000

© a. X cannot recover from D what he pays C

© b. X can recover from D 10,000 because the latter was enriched at the expense
ofA

©) . Cis liable to X for 10,000

(©) 4. Xhas no right

Correct answer

@) a. X cannot recover from D what he pays C

* 21. Dowes C 500. However, C's right has already prescribed. *O/1
Notwithstanding the knowledge of this fact, D paid the amount.
Realizing this mistake, D wants to recover the amount he paid.

O a. D can be made to recover on ground of mistake

© b. D can be made to recover on the ground that his obligation is not legally x
enforceable

O c. D can be made to recover because this will enrich C at the expense of D

(©) 4. D cannot recover

Correct answer

@ d. D cannot recover

™* 22. Statement 1: Annulment is available to persons party thereto as well *0/1

as to third persons.Statement 2: The action to declare a void contract a
nullity prescribes is for (4) years.

(@) a. Only Statement 1 is true x

©) 8. Only Statement 2 is true

O c. Both are true

(©) d. Both are false

Correct answer

@ d. Both are false

Y 23. Statement 1: Contribution of a partner in a partnership, if an WH
immovable property, need not be in writing.Statement 2: Unauthorized
contracts are null and void.

© a. Only Statement 1 is true

© 8. Only Statement 2 is true

© c. Both are true

@ 4. Both are false A.

X 24. Reluctantly and against her good sense and judgment, Marirose *o/1
entered into contract for delivery of 5 tables to Portia for a price of
15,000. Contract is

© avoid

© >. voidable x

© .unenforceable

O 4. valid
Correct answer

© 4. valid
* 25. Avoidable contract * o/1

O a. a contract between a corporation and one of its directors

O b. a contract of sale of TV set between married person and an insane person

@ c. a contract entered into a hypnotic spell x

(©) 4d. all of the above

Correct answer

@) 4. allof the above

MULTIPLE CHOICE 7 a mere)

~ 26. Statement 1: The action for rescission is subsidiary, it cannot be WH"

instituted except when there is no legal means to obtain reparation for
damages suffered.Statement 2: In rescission, the basis is vitiated
consent or incapacity to consent.

@) a. Only Statement 1 is true v

©) B. Only Statement 2 is true

© c. Both are true

O d. Both are false

* 27. Statement 1: The right to set up the defense of illegality cannot be *0/1
waived in a void contract.Statement 2: In the case of an illegal contract
where there is criminal offense, the parties cannot be prosecuted if
they are both in pari delicto.

© a. Only Statement 1 is true

©) 8. Only Statement 2 is true

©) c. Both are true

(@) 4. Both are false x

Correct answer

@) a. Only Statement 1 is true

“ 28. Statement 1: Ratification of a contract should be done *O/1

expressly.Statement 2: A contract is voidable if fraud is committed to
deceive the other party to enter into a contract.

© a. Only Statement 1 is true

©) 8. Only Statement 2 is true

@) c. Both are true x

O d. Both are false

Correct answer

fe) © Only Ctatament 2 je trie

* 29. X gives Y P10,000.00 because the latter saved him from drowning *0/1
while they were attending a beach part. The agreement here is:

O a. A contract without consideration

@ ». Aremuneratory contract x

© c. both of a and b

(©) 4.none of aand b

Correct answer

@ d. none ofa and b

* 30. Cannot be ratified: * o/1

a. Those entered into in the name of another person by one who has been given no
authority or legal representation
OO

b. Those where both parties are incapable of giving consent to a contract

c. Those where the contract is vitiated by mistake, violence, intimidation, undue +

©

influence or fraud

O d. Those where the intention of the parties relative to the principal object of the
contract cannot be ascertained

Correct answer

© d. Those where the intention of the parties relative to the principal object of the
contract cannot be ascertained
MULTIPLE CHOICE 8 vam M De)

31. The most defective contract: * V1

O a. A contract entered into in the name of another without authority from the latter

O b. A contract entered into where the consent of one of the parties is vitiated by force

O c. A contract entered into between two insane persons

© d. A contract of sale between husband and wife whose property relations are wv
governed by the conjugal partnership of gains

% 32. Must be in writing to be enforceable: * o/1

O a. lease of a unit of an apartment for one year

O b. lease of a car for two years

©) . loan of P10,000

(@) d. none of the above x

Correct answer

@) a. lease of a unit of an apartment for one year

os ne a ee ee ce, ie ee | | + ie “-— ona

 33. Acontract entered into between a minor and a capable personis:* 1/1

O a. More defective than a contract undertaken in fraud of creditors where the latter
cannot in any other manner collect the claims due them;

b. More defective than a contract which refers to things under litigation if it has been
O entered into by the defendant without the knowledge and approval of the litigants or
a competent judicial authority

@) c.Bothofaandb Jv

O d. None of aandb

™ 34. Statement 1: A contract, which is the direct result of a previous *o/1

illegal contract, is valid and existent.Statement 2: A contract is voidable
if fraud is committed to deceive a third person.

©) a. Only Statement 1 is true

© 8. Only Statement 2 is true

©) c. Both are true

(@) 4. Both are false x

Correct answer

@) 8. Only Statement 2 is true

* 35. Sorally sells a piece of land to B for P1,.000,000. 5 has not yet *O/1
delivered but B has already paid for the purchase price of the land.

© a. voidable

(@) b. unenforceable x

OC c. void

() d.none of the these

Correct answer

@ d. none of the these

0) On OO oe) 0 of 5 points

% 36. Statement 1. The Statute of Fraud applies in contracts of *O/]

loanStatement 2. Sale of personal property for P500.000 or less need
not be in writing in order to be enforceable.

(©) a. Only Statement 1 is true

(@) 8. Only Statement 2 is true x

© . Both are true

©) 4d. Both are false

Correct answer

@) 4. Both are false

* 37. Must be in writing to be enforceable: * o/1

O a. the amount of the principal and of the interest in antichresis

() b. an agreement to pay interest

@ C. partnership where immovable property are contributed x

©) D. none of the above.

Correct answer

@) D. none of the above.

™ 38. The Statute of Fraud is applicable: * on

O a. lease of land for 12 months

© b. lease of car for 18 months 4

© c. both of a and b

(©) 4.none of aand b

Correct answer

© d. none ofa and b

* 39. Sale between X and Y who are living as husband and wife without *0/1
the benefit of marriage:

(@) a. perfectly valid x

© ». voidable

O c. unenforceable

©) 4. void

Correct answer

@) 4. void

™* 40. S orally donated a piece of land to B. There was, however, delivery *-/1
of the subject matter.

@) a. Perfectly valid x

© ». voidable

©) c. Unenforceable

O d. Void

No correct answers
No correct answers

SO
eter Ue) Mey mm eredi)

1. Six (6) kinds of contracts that are rescissible. * 3/6

Contracts entered into behalf of wards; agreed upon in representation of absentees;

based on fraud on creditor; refer to objects under litigation; declared by law; and <
payment by an insolvent.

ENUMERATION 2 eee wee

% 2. Atleast four (4) instances considered as badges of fraud. * 3/4

Evidence of complete insolvency; debtor transfers all or almost all of his property;
transfer between father and son; transfer between husband and wife. x

ENUMERATION 3 ee ee wee

” 3. Four (4) conditions for the exercise of rescission. * 4/4

Contracts must be rescissible; rescission is the only remedy; plaintiff must return
whatever he is obliged to return due to rescission, and it must be within the prescribed
period.
ENUMERATION 4 3 of 3 points

4. Three (3) distinctions between a rescissible contract and voidable *3/3

contract.

Rescissible contract was validly entered, while voidable is legally defective.

Rescission is subsidiary action, while in voidable, annulment is a principal action.
Rescissible contract also includes a third person who suffered damages, while in x
voidable it is brought by only a party to the contract.

ENUMERATION 5 3 of 3 points

” 5. Three (3) distinctions between a voidable contract and void *3/3

contract.

Void contract produces no effect, while voidable is existent, Void is lacking essential
elements of contract, while voidable possess all of it. Void cannot give rise to avalid 3
contract, while voidable contract can.

ENUMERATION 6 prey emcee]

6. Four (4) contracts that should comply with the Statute of Frauds.* 4/4

Agreement of sale of goods, not less than 500 pesos; promise to answer the debt of
another; agreement for lease with more than 1 year period; and agreement in <
consideration of marriage.
 6. Four (4) contracts that should comply with the Statute of Frauds.* 4/4

Agreement of sale of goods, not less than 500 pesos; promise to answer the debt of
another; agreement for lease with more than 1 year period; and agreement in <
consideration of marriage.

aU)
Filed tO) ed 3 of 3 points

~~ 7. Three (3) void or inexistent contracts. * 3/3

Those lacking the essential elements of the contract; prohibited by law; and illegal. <

ENUMERATION 8 3 of 3 points

“ 8. Atl east hree three (3)

(3)i instancesof f natural
natural obligati
obligations. * 3/3

These 3 instances shows that after the voluntary fulfillment of the obligor, he cannot
recover what he has delivered: performance of civil obligation is prescribed,
restitution by minor after annulment of contract, payment of minor to fulfill his x
obligation.

This fonm was created inside of Divine Word College of Calapan.

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