WEEK 17 MODULE - ASSIGNMENT

OBLIGATIONS AND CONTRACT

Types of Contracts

1. Requisites in order that the remedy of rescission may be availed of does

NOT include

There must be lesion or pecuniary prejudice or damage to one of the parties or to

a third person.
The party asking for rescission must be able to return what he is obliged to
restore by reason of the contract (Art. 1385, par. 1.);
The object of the contract must be in the possession of third persons who did not
act in bad faith
The period for filing the action for rescission must not have prescribed.
2. An/a ___________ is a person who disappears from his domicile, his
whereabouts being unknown, and without leaving an agent to administer his
property.
Ward
minor
absentee
fraudster
3. Which of the following is NOT correct?
Voidable contract is a contract that has all the requisites of a contract but consent
is defective either due to vitiation of consent or lack of capacity to contract.
Unenforceable contract cannot be sued upon or enforced in the proper court
action unless it is ratified.
Void contract is perfected because all the essential requisites for its existence
are present, but the contract is invalid from the inception.
There will be rescission of a contract when the ward suffers lesion by less than
one-fourth of the value of the property in contract entered into by guardian on
behalf of the ward.
4. Which is TRUE regarding void contracts?
Void contracts always produce no effect whatsoever either against or in favor of
anyone.
Void contracts can be ratified.
In void contracts where the nullity proceeds from the illegality of the cause or the
purpose of the contracts, and the two are equally at fault, the law leaves them as
they are and denies recovery by either one of them.
Void contracts are subject to prescription.
5. Which of the following is TRUE regarding voidable contract?
The action for annulment of voidable contract shall be brought within five years.
Those where both parties are incapable of giving consent to a contract results to
voidable contract.
It can be subject to annulment but not ratification.
It can be subject to annulment as well as ratification.
6. Which of the following is INCORRECT?
 The defect of an unenforceable contract is of a permanent nature and will exist
as long as the contract is not duly ratified.
Inexistent contract is one which does not exist because any of the essential
requisites for the existence of a contract is totally lacking.
In void contract, when only one of the contracting parties is at fault, the party at
fault cannot recover what he has given by reason of the contract.
Rescission in Article 1191 of the NCC is a subsidiary remedy which is based on
breach of contract by the other party.
7. Under Article 1381 of the NCC, the following contracts are rescissible, EXCEPT
Those which are entered into by guardians whenever the wards whom they
represent suffer lesions by more than one-fourth of the value of the things which
are the objects thereof.
Those agreed upon in representation of absentees, if the latter suffer the lesion
as stated in the preceding number.
Those undertaken in fraud of creditors when the latter cannot in any other
manner collect the claims due them.
Those which are entered into by guardians whenever the wards whom they
represent suffer lesions by not more than one-fourth of the value of the things
which are the objects thereof.
8. Which of the following is not true regarding rescissible contracts?
Payments made in a state of insolvency for obligations to whose fulfillment the
debtor could not be compelled at the time they were effected, are also rescissble.
The action to claim rescission, must be commenced within five years.
The action for rescission cannot be instituted except when the party suffering
damage has no other legal means to obtain reparation for the same.
Rescission shall be only to the extent necessary to cover the damages caused.
9. This is the rescissory action to set aside contracts in fraud of creditors?
Accion in rem verso
Accion subrogatoria
Accion pauliana
Accion quanti minoris
10. Which of the following is NOT true regarding accion pauliana?
It is a principal remedy and has prescriptive period of four years from a fraudulent
alienation.
The third person who received the property conveyed, if it is by onerous title, has
not been an accomplice in the fraud.
The conveyance must be absolutely simulated.
It is a subsidiary remedy and has prescriptive period of four years from a
fraudulent alienation.
11. The following are the requisites of Accion Pauliana EXCEPT?
The act being impugned is fraudulent.
The creditor has other legal remedy to satisfy his claim.
The plaintiff asking for rescission has a credit prior to the alienation, although
demandable later.
The debtor has made a subsequent contract conveying a patrimonial benefit to a
third person.
12. The following contracts are voidable or annullable, even though there may have
been no damage to the contracting parties, EXCEPT?
Those where the consent is vitiated by mistake or fraud.
Those where the consent is vitiated by violence or intimidation.
Those where both parties are incapable of giving consent to a contract.
Those where one of the parties is incapable of giving consent to a contract.
13. The action for annulment shall be brought within four years and shall begin
when?
In cases of intimidation, violence or undue influence, from the time the defect of
the consent ceases.
In case of mistake or fraud, from the time of the discovery of the same.
And when the action refers to contracts entered into by minors or other
incapacitated persons, from the time the guardianship ceases.
All of the above.
14. The following are TRUE regarding ratification of voidable contract, EXCEPT?
Ratification extinguishes the action to annul a voidable contract.
Ratification may be effected expressly but not tacitly.
Ratification may be effected by the guardian of the incapacitated person.
Ratification cleanses the contract from all its defects from the moment it was
constituted.
15. The action for the annulment of contracts may not be instituted by the following
EXCEPT?
Person who caused mistake in the contract.
The party upon attaining the age of majority.
Person who are capable cannot allege the incapacity of those with whom they
contracted.
Persons who exerted intimidation, violence or undue influence or employed
fraud.
16. The following are the requisites of annulment based on fraud, EXCEPT
It must have been employed by one contracting parties upon the other.
It must have been induced the other party to enter into a contract.
It must not be serious.
It must have resulted in damage and injury to the party seeking annulment.
17. It is a deception employed by one party prior to or simultaneous to the contract in
order to secure the consent of the other.
Incidental fraud.
Causal fraud
Fraud in execution
Dolo incidente
18. Where the consent was given through fraud, the contract was
Unenforceable
Void ab ignitio
Voidable
Perfectly valid
19. The right of a minor to rescind, upon attaining his majority, a contract entered into
during his minority, is subject to the following conditions.
 That the election to rescind must be made with a reasonable time after majority.
That all of the considerations which was in the minor’s possession upon his
reaching majority must be returned.
The disposal of any part of the consideration after the attainment of majority
imports an affirmance of the contract.
Both choices 1 and 2.
20. These are contracts that cannot be enforced upon in proper court by the parties
without ratification.
Unenforceable
Void
Voidable
Rescissible
21. Those that do not comply with the Statute of Frauds in the following cases, an
agreement hereafter made shall be unenforceable, EXCEPT?
An agreement that by its terms is not to be performed within a year from the
making hereof.
A special promise to answer for the debt, default, or miscarriage of another.
An agreement made in consideration\on of marriage.
Mutual promise to marry.
22. Those that who do not comply with the Statute of Frauds in the following cases,
an agreement hereafter made shall be unenforceable, EXCEPT?
An agreement for the sale of goods, chattel or things in action, at a price not less
than five hundred pesos.
Where a sale is made by auction and entry is made by the auctioneer in his sales
book, at the time of sale.
An agreement of the leasing for a longer period than one year, or for the sale of
real property or of an interest therein.
A representation as to the credit of a third person.
23. The following contracts are inexistent and void from the beginning, EXCEPT?
Those whose cause, object or purpose is contrary to law, morals, good customs,
public order or public policy.
Those whose cause or object did not exist at the time of the transaction.
Those which are relatively simulated or fictitious.
Those which contemplate an impossible service.
24. All are characteristics of void or inexistent contracts, EXCEPT?
As a rule, they produce no effect whatsoever either against or in favor of anyone.
They can be ratified.
The right to set up the defense of illegality cannot be waived.
The action or defense for the declaration of the inexistence of a contract does not
prescribe.
25. What will be NOT be observed if the act in which the unlawful or forbidden cause
consists does not constitute a criminal offense?
When the fault is on the part of both contracting parties, neither may recover
what he has given by virtue of the contract.
When only one of the contracting parties is at fault, the party at fault cannot
recover what he has given by reason of the contract.
When only one of the contracting parties is at fault, the party at fault cannot ask
for the fulfillment of what has been promised.
When only one of the contracting parties is at fault, the party at fault may demand
the return of what he has given without any obligation to comply his promise.