HEAD START - 3rd Year - Week 2 Assessment - Law

on Contracts
This quiz covers the topic Law on Contracts.

This quiz contains a total of forty (40) questions and a total of 40 points. There are 40 Law on Contracts
theory questions. Every correct answer for theory questions has a corresponding point of one (1). 

GUIDELINES FOR ANSWERING THE ASSESSMENT:

1. The assessment is open from 6:00 pm until 7:05 pm.

2. Late examinees are allowed to take the examination. However, the scheduled time of the assessment
will not be adjusted. Hence, late examinees shall finish taking the examination following the same
deadline of 7:05 pm.
3. Submissions beyond 7:05 pm will not be accepted.
4. For identification questions, wrong spelling will be considered wrong. However, examinees are allowed
to use the abbreviations stated in the activity's Implementing Rules and Regulations (IRR).

5. Complete result of the examination will be out in 48 hours. 

Best of luck and ace the exam, JPIAn!

Hi, RAZEL MHIN. When you submit this form, the owner will see your name and email address.

* Required

1. Which of the following best describes an onerous contract? * (1 Point)

It is a contract whereby there is an exchange of valuable consideration such as contracts of

sale and barer. For each contracting party, the cause is the prestation or the promise of a thing
or service by the other.

It is a contract whereby one party receives no equivalent consideration such as contracts of

donation and commodatum. These contracts are referred to as contracts of pure beneficence,
the cause of which is the liberality of the benefactor.

It is a contract whereby the cause here is the service of benefit remunerated.

It is a contract wherein there is no cause or consideration.

2. The following are the essential requisites of formal or solemn contracts, except
* (1 Point)
 Delivery of the subject matter

Consent of the contracting parties

Object certain which is the subject matter of the contract

Cause of the obligation which is established

Execution of formality or solemnity required by law

3. Which of the following statements pertaining to the stages of a contract refers to the preparation
or conception stage?

* (1 Point)

It refers to the first stage that involves preliminary negotiations and bargaining, discussion of
terms and conditions, with no arrival yet of a definite agreement.

It refers to the second stage that pertains to the point wherein there is a meeting of minds
between the parties on a definite subject matter and valid cause.

It refers to the last stage that pertains to the point when the contract has been fulfilled resulting
in its accomplishment.

4. This characteristic of contract takes effect only between the parties, their assigns and heirs,
except where the rights and obligations are not transmissible by law, stipulations, or nature.
* (1 Point)

Mutuality

Autonomy

Consensuality

Relativity

5. The contract provides that the determination of the performance is left to a third person. Is the
stipulation valid?

* (1 Point)

No, because it is contrary to law, morals, good customs, public order or public policy.

No, because it violates the mutuality of contract.

Yes, because the determination of performance of a contract may be left to a third person,
whose decision shall not be binding until it has been made known to both contracting parties.
 Yes, because the determination of a third person is obligatory whether or not it is evidently
inequitable.

6. The following are the requisites of things as object of contract, except

* (1 Point)

The thing must not be within the commerce of men

It must not be impossible, legally or physically

It must be in existence or capable of coming into existence

It must be determinate or determinable without the need of a new contract between the parties

7. Before the acceptance is conveyed, an offer becomes ineffective upon the happening of the
following to either the offeror or acceptor, except
* (1 Point)

Civil interdiction

Insanity

Insolvency

Sickness

8. IDENTIFY: It is a mistake of fact that is common to both parties of the instrument which causes
the failure of the instrument to express their true intention.
* (1 Point)

Mutual Mistake

9. IDENTIFY: It refers to the doctrine that “When the true intention of the parties to a perfected and
valid contract are not expressed in the instrument purporting to embody their agreement, by
reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the
reformation of the instrument so that such true intention may be expressed.”
* (1 Point)

Reformation of instruments
10. It is the stage in the life of a contract wherein the parties have come to a definite agreement or
meeting of the minds regarding the subject matter and cause of the contract.

* (1 Point)

Preparation

Perfection

Termination

Negotiation

11. TRUE OR FALSE: Unemancipated minors refer to those persons who have not yet reached the age
of majority (18 years) but are not subject to parental authority.
* (1 Point)

True

False

12. How is the nature of the contract determined by the court?

* (1 Point)

Contract is what the parties choose to call them.

Contract is determined by the stipulations of the parties.

Contract is determined by the principles of law.

Contract is determined by the surrounding circumstances.

13. What is the nature of a contract to constitute a pledge, a deposit, a loan or a commodatum? *
(1 Point)

Real contract

Consensual contract

Formal contract

Solemn contract

14. Which of the following characteristics of contracts pertains to relativity of contract? * (1 Point)
 It means that contractual provisions constitute the law between the parties. Obligations arising
from contracts have the force of law between the contracting parties and should be complied
with in good faith.

It means that the validity and performance of a contract cannot be left to the will of only one of
the parties but must be mutually decided by all contracting parties.

It means that the contract binding only upon the contracting parties and their successors such
as heirs or assignees and third persons are not generally allowed to assail a contract.

It means that the parties may establish such stipulations, clauses, terms, and conditions as
they may deem convenient, provided they are not contrary to law, morals, good customs, public
order or public policy.

15. An audit staff and an auditing firm orally entered into a contract of employment whereby it is
stipulated that overtime premium and holiday pay are waived. Is the waiver valid?

* (1 Point)

Yes, because of mutuality of contract.

Yes, because of the autonomy of contract.

No, because it is contrary to the law and public policy.

No, because it is entered into orally but not into writing.

16. Which of the following statements concerning the concept of consent is incorrect? *
(1 Point)

Consent is manifested by the meeting of the offer and the acceptance upon the thing and the
cause which are to constitute the contract.

The offer must be certain and the acceptance must be absolute.

A qualified acceptance constitutes a counter-offer.

Consent must be expressed but not implied.

17. TRUE OR FALSE: All contracts are agreements but not all agreements are contracts. * (1 Point)

True

False
18. A offered B to purchase his car. A allowed B two weeks to accept the offer. A and B also entered
into a contract of option for the two weeks allowance and B paid P200 for the option. Can A
withdraw the offer before acceptance by B?
* (1 Point)

Yes, because an offer may be withdrawn by oferrer before the acceptance is communicated.

No, because the option contract is supported by a consideration.

No, because the offer cannot be withdrawn once given.

Yes, because the contract is not yet perfected.

19. Freedom to contract is one of the liberties of the people of the state as guaranteed by due
process clause. This means that the contracting parties may establish such stipulations, clauses,
terms and conditions as they may deem convenient, provided they are not contrary to the
following, except
* (1 Point)

Law

Religion

Morals

Good customs

20. On March 5, 1956, A wrote a letter to B offering him the lease of a building. On March 6, 1956, at
1:00 PM, B sent a letter of acceptance which was received by A at 4:00 PM that day. But at 2:00
PM, A had already sent B a letter of withdrawal of the offer which was received by B at 5:00 Pm.
When was the contract perfected?
* (1 Point)

At 1:00 PM

At 4:00 PM

At 2:00 PM

The contract has not been perfected.

21. Consensual contracts are perfected by * (1 Point)

Delivery of the object of a contract

Execution of formalities required by law

 Mere consent by contracting parties

Provisions of the law

22. IDENTIFY: It is an act whereby a person is permitted with the formalities prescribed by law to
control to a certain degree the disposition of his estate, to take effect after his death.

* (1 Point)

Will

23. This contract requires compliance with certain formalities prescribed by law, such prescribed
form being thereby an essential element thereof.

* (1 Point)

Consensual contract

Real contract

Solemn contract

Nominate contract

24. The following are the order of priority regarding rules that shall govern innominate contracts,
except

* (1 Point)

The stipulation of the parties

The provisions of obligations and contracts

The rules governing the most analogous contracts

The customs of the place

The provisions of the tax code

25. IDENTIFY: It is a source of obligation that is enforceable through legal proceedings in case the
other party does not comply with his obligation under the agreement.
* (1 Point)

Enforceable obligation
26. Relativity of contract provides that contract takes effect only between the following, except
*
(1 Point)

Contracting parties

Assigns of contracting parties

Heirs of contracting parties

Third persons

27. TRUE OR FALSE: There can be a contract if there is no obligation accepted in return for some
benefit to be enjoyed.
* (1 Point)

True

False

28. What is the effect of the death, civil interdiction, insanity, or insolvency of either of the offeror or
offeree before acceptance is conveyed?
* (1 Point)

The offer becomes ineffective.

The offer is still effective.

As against the offeror only, the offer becomes ineffective.

As against the offeree only, the offer becomes ineffective.

29. A stipulation provides that the student’s scholarship is good only if he continues in the same
school, and that he waives his right to transfer to another school without refunding the equivalent
of his scholarship in cash is null and void because it is contrary to
* (1 Point)

Law

Morals

Public order

Public policy
30. A stipulation which provides that a person shall marry a person in consideration of money is null
and void because it is contrary to
* (1 Point)

Law

Morals and good customs

Public order

Public policy

31. The following are the types of contracts according to degree of dependence, except * (1 Point)

Preparatory

Accessory

Bilateral

Principal

32. The following are the innominate contracts, except

* (1 Point)

Do ut des (I give that you may give.)

Do ut facias (I give that you may do.)

Facio ut des (I do that you may give.)

Facio ut facias (I do that you may do.)

Facias ut des (I do not do that you may not do.)

33. In an offer to sell, parties failed to agree on the size of the land to be sold. Is there a meeting of
the minds of the parties that would perfect a contract?
* (1 Point)

There is no consent that would perfect a contract as there is no agreement on the exact area to
be sold.

There is no consent because the land is still identified.

There is no consent because there is agreement to sell and to buy.

 The information given is insufficient to answer the question.

34. A stipulation which provides that in the event of nonpayment of the debt at maturity that the
creditor may appropriate for himself the thing given as security is null and void because it is
contrary to

* (1 Point)

Morals

Good customs

Law

Public order

35. Student No. (e.g., 2020-00000) *

2020-40192

36. In an auction for ejectment, the lessee interposed the defense that the contract of lease
authorized them to continue occupying the premises so long as they paid their rents. Is the
defense of the lessee tenable?
* (1 Point)

No, because it violates mutuality of contract which provides that the contract must bind both
contracting parties and its validity or compliance cannot be left to the will of one of them.

Yes, because it is stipulated in the contract.

No, because it is contrary to morals and good customs.

Yes, because it does not violate public order and public policy.

37. Which of the following characteristics of contracts pertains to autonomy of contract?

* (1 Point)

Liberty or freedom to contract or autonomy of contract means that the parties may establish
such stipulations, clauses, terms, and conditions as they may deem convenient provided they
are not contrary to law, morals, good customs, public order or public policy.
 It means that contracts are generally perfected by mere consent except in case of real con‐
tracts that require delivery of subject matter and formal or solemn contracts which require exe‐
cution of formality required by law. 

It means that contracts should not be contrary to law.

It means that contracts should not contain doubt or ambiguity to avoid confusion and misun‐
derstanding in the performance contract.

38. Real contracts are perfected by * (1 Point)

Delivery of the object of a contract

Execution of formalities required by law

Mere consent by contracting parties

Provisions of the law

39. What is the difference between a mistake of fact and a mistake of law? * (1 Point)

A mistake of law vitiates consent which renders a contract voidable; while a mistake of fact
does not render contract voidable.

Both mistakes of fact and of law render a contract voidable.

Both mistakes of fact and of law do not render a contract voidable.

A mistake of fact vitiates consent which renders a contract voidable; while a mistake of law
does not render a contract voidable.

40. The following are the requisites of an offer, except

* (1 Point)

It must be definite.

It must be uncertain.

It must be complete.

It must be intentional.
41. TRUE OR FALSE: When, there having been a meeting of the minds of the parties to a contract, their
true intention is not expressed in the instrument purporting to embody the agreement, by reason
of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation
of the instrument to the end that such true intention may be expressed.
* (1 Point)

True

False

Submit

This content is created by the owner of the form. The data you submit will be sent to the form owner. Microsoft is not
responsible for the privacy or security practices of its customers, including those of this form owner. Never give out your
password.

Powered by Microsoft Forms | Privacy and cookies | Terms of use