Final Pre-Board Examination

Part – 4
Regulatory Framework for Business Transaction

1. The following contracts are unenforceable if not in writing, except:

a. Sale of land as to authority of the agent to sell land
b. Sale of personal property at least P500
c. Lease of real property with a term of more than 1 year
d. Contract for a piece of work not to be performed within a year

2. An action for annulment of a sale of land on the ground of fraud would prescribe in 4
years from;
a. Date of Sale
b. Discovery thereof
c. Registration of the sale
d. Delivery

3. Lucifer Morningstar rented out a condominium unit to Chloe Decker for an 18-month
period. The agreement not embodied in any written contract. As agreed upon by the
parties, Chloe provided a check for 2 months deposit and 18 post-dated checks to cover
the 18-month term of the lease. What is the status of the contract?
a. Valid and enforceable
b. Rescissible
c. Void
d. Unenforceable

4. Cameron Tucker obliged himself to deliver one of his five cars to Gloria Delgado-
Pritchett but it was not specific which car. In this case,
a. The contract would be interpreted following the least transmission of rights
b. The contracts would be interpreted following the greatest reciprocity of interest
c. The contract is void
d. They would need to undergo reformation to clarify which car

5. Which of the following is false with regards the person who can institute annulment of a
contract?
a. Only the incapacitated or injured party or his guardian can ask for annulment
b. Creditors of the incapacitated party can ask for the annulment of the contract
entered into by their incapacitated debtor
c. Those who are capacitated cannot allege the incapacity of the other contracting party
d. Answer not given