CONTRACTS REVIEWER C.

The period of one week

D. The delivery of the van
1.A delivered his bracelet to B for B’s necklace. No
written agreement was signed by the parties. Which
of the following is appropriate description of the 8. The principle that contracting parties may
contract between A and B? establish such stipulations, clauses, terms and
A. Onerous and bilateral conditions as they may deem convenient, provided
B. Bilateral and innominate they are not contrary to law, moral, public policy
C. Bilateral and innominate and public order, refer to the principle of
D. Aleatory and nominate A. Liberty of contract
B. Relativity of contract
2.They are the elements that are found in certain C. Consensuality of contract
contracts and are presumed to exist unless set aside D. Mutuality of contract
by the parties
A. Accidental elements 9. The following instances will render an offer
B. Natural elements ineffective before acceptance is conveyed. Which
C. Artificial elements one will not? When one of the parties
D. Incidental elements
A. Is civilly interdicted
3.They refer to the elements that may be stipulated B. Becomes insolvent
by the contracting parties C. Becomes insane
A. Accidental elements D. Is placed under a hypnotic spell
B. Natural elements
C. Artificial elements 10. The following statements pertain to the cause of
D. Incidental elements a contract. Which statement refer to motive?
A. It is the essential reason of a contract.
4.The following are some accidental elements of a B. It is always known to the contracting parties
contract of sale, except C. It is illegality does not affect the validity of the
A. Terms of payment contract
B. Interest rate D. there will be no contract without it
C. Place of payment
D. Accession and accessories 11. The bargaining point, that is, when negotiation is
in progress (stage in the life of a contract)
5. A contract where the cause with respect to each A. Consummation
contracting party is the prestation or the promise of B. Conception
a thing or service by the other is C. Perfection
A. An onerous contract D. Birth
B. A gratuitous contract
C. An innominate contract
D. An aleatory contract 12. The meeting of minds regarding the object and
cause of the contract (stage in the life of a contract)
6. A contract where one party receives no valuable A. Conception
consideration and the cause is the liberality of the B. Preparation
benefactor is C. Death
A. A gratuitous contract D. Birth
B. A unilateral contract
C. An onerous contract 13. The point where the parties have performed
D. A commutative contract their respective obligations and the contract is
7. A delivered his van to B for the latter’s use for one Terminated
week without any compensation. The cause of the A. Preparation
contract is B. Conception
A. The van of A C. Perfection
B. The generosity of A D. Consummation

14. When there is concurrence of offer and
acceptance, there is
A. Payment
B. Consignation
C. Consent
D. Tender of payment
24. An absolutely simulated or fictitious contract is
A. Void
B. Voidable
C. Rescissible
D. Unenforceable
25. A sold to B his cow for P5,000. No date is fixed by
the parties for the performance of their respective
obligations. The obligation of A is
A. To deliver the cow immediately as there is a
perfected contract.
B. To deliver the cow within the reasonable time
from the perfection of the contract
C. To deliver the cow upon the payment by B of
P5,000
D. To rescind the contract as there is no time fixed
for the delivery and payment.
27. A owes B P10,000 due on March 10, 2010. A
owes B P8,000 due on March 11, 2010. A obliged
himself to deliver to B a cow valued at P6,000 on
March 12, 2010. On March 13, 2010, a paid B
P10,000. If A makes an application of payment,
A. The P10,000 should be applied to the first debt
only
B. The P10,000 should be applied to the second debt
only
C. The P10,000 may be applied either to the first
debt or second debt
D. The P10,000 may be applied to the first debt, or
to the second debt or to the third debt
28. A contract where both contracting parties are
incapable of giving consent is
A. Void
B. Rescissible
C. Unenforceable
D. Voidable
29. The conception of a contract is when
A. When there is meeting of the minds
B. When negotiations are in progress
C. When the contract is executed
D. When the parties come to an agreement
30. Contract which has no effect at all
A. Rescissible
B. Voidable
C. Unenforceable
D. Void
31. Contract which can not be ratified
A. Rescissible
B. Voidable
C. Unenforceable
D. Void
32. If mistake, fraud, accident or inequitable conduct
has prevented a meeting of the minds of the parties
to a contract, the proper remedy is
A. Ratify the contract
B. Ask for a specific performance
C. Annulment of the contract
D. Reformation of the contract
33. A sold his land to B. The sale was made orally. B
paid the agree price. B wanted to have the sale
registered but he needs a public instrument. Which
is correct?
A. B may sue A for the return of his money as no one
shall be unjustly enriched at the
expense of another.
B. B cannot demand the return of the purchase price
because the sale is unenforceable.
C. B may compel A to execute the public instrument
because the sale is valid.
D. B may only occupy and use the land as buyer in
good faith
35. A is the guardian of B, a minor. B sold A’s land in
writing to C valued at P1M for P.7M. The
sale is (stage in the life of a contract)
A. Rescissible
B. Voidable
C. Unenforceable
D. Void
37. Although validly agreed upon, courts can nullify
this contract because of damage to one of the
parties or to a third person and its enforcement, may
cause injustice by reason of some external facts
A. Rescissible contracts
B. Voidable contracts
C. Unenforceable contracts
D. Void contracts
38. A contract where the fulfillment is dependent A. Pledge
upon the chance, so the values may vary because of B. Deposit
the risk or chance. C. Commodatum
A. Commutative D. Sale
B. Aleatory
C. Remunerative 50. Pledge, deposit and commodatum are
D. Gratuitous A Consensual contracts
B. Real contracts
39. A clause providing that the mortgagee will C. Solemn contracts
automatically own the property mortgaged if the D. Formal contracts
debt is not paid at maturity is 52. Acceptance of an offer made by letter or
A. Dacion en pago telegram shall bind the offeror. From the time the
B. Payment by cession A. Offeree accepted the offer
C. Pactum Commissorium B. Offeree sent his letter or telegram
D. Upset price C. Acceptance came to the knowledge of the offeror
D. Offeror made the offer
43. The contact must bind both contracting parties
A. Consensuality of 53. A contract where consent is given through
B. Simplicity of contract mistake, violence, intimidation, undue influence or
contract C. Mutuality of contract fraud is
D. Relativity of contract A. Rescissible
B. Voidable
44. Not a characteristic of contract C. Unenforceable
A. Consensuality of contract D. Void
B. Simplicity of contract
C. Mutuality of contract 70. The mortgagor will execute an instrument to
D. Relativity of contract transfer the ownership over the property
mortgaged to the mortgagee if the debt is not paid
45. Contracts are generally effective only between at maturity is
the parties, their assigns and their heirs A. Void
A. Consensuality of contract B. Voidable
B. Simplicity of contract C. Valid
C. Mutuality of contract D. Unenforceable
D. Relativity of contract
75. A, B and C are jointly liable to D in the amount of
46. A stipulation in favor of a third person P9,000. D assigns the entire credit to A. In this case
A. Stipulation pour autrui A. The obligation is extinguished because of
B. Stipulation pour over confusion
C. Assignment of credit B. B and C will not be liable to A
D. Pactum commissorium C. a becomes the new creditor and may demand
from B and C P4,500 each
48. Not a requisite of stipulation pour autrui D. A’s share in the obligation is extinguished because
A. The contracting parties must have clearly and of confusion.
deliberately conferred a favor upon third
person 90. One is not a requisite needed in order that
B. The stipulation must be part of the contract obligation shall be extinguished by loss or
C. The third person communicated his acceptance to destruction of the thing due:
the obligor before its revocation A. When the thing is lost without the fault of the
D. There must be an agency between either of the debtor
parties and the third person B. When the thing lost is generic
C. When the thing is lost before the debtor has
49. The following contracts are not perfected until incurred in delay.
the delivery of the object of the obligations, except D. When the thing lost is specific
 d) Obligist
92. The obligation is demandable on the date of the
obligation and shall continue to be in force 5. Omission of the diligence which is required by the
up to the arrival of the day certain: circumstances of person,
A. Resolutory period place and time.
B. Suspensive period a) Liability
C. Indefinite period b) Crime
D. Legal period c) Injury
d) Negligence
96. Characteristic of void contracts, except
A. Defense of illegality cannot be waived 6. It gives a right of action to compel or demand a
B. Cannot be ratified performance.
C. Action for declaration of inexistense does not a) Natural Obligation
prescribe b) Moral Obligation
D. The inexistence can be assailed by third person c) Personal Obligation
d) Civil Obligation
99. Unless ratified, suits will not prosper if the
contract is 7. As a rule in recompensing with the injured party,
A. Rescissible C. Unenforceable which of the following restores
B. Voidable D. Void the damage as a whole?
a) Respiration
1. What do you call quasi-contracts with names such b) Reparation
as Negotiorum gestio and c) Restitution
Solutio indebiti? d) Indemnification
a) Named Quasi-Contracts
b) Formal Quasi-Contracts 8. The conduct required to be observed by the
c) Nominate Quasi-Contracts debtor.
d) Nominal Quasi-Contracts a) Object
b) Good faith
2. This exists when a person voluntarily takes care of c) Compliance
a business or properties that d) Diligence
are not abandoned without the express
authorization of the owner. 9. Arises only when the moment a right has been
a) Negotiorum gestio transgressed occurs.
b) Unauthorized contract a) Cause of action
c) Authorized contract b) Right of action
d) Wingardium leviosa c) Wrong of action
d) Lights, camera, action
3. The following are prerequisites of quasi-delicts,
except? 10. Wrongful violation of a legal right is not sufficient
a) Damaged caused to the defendant to entitle a person to sue
b) Act or omission another in court of justice. As a rule, there must be,
c) Fault or negligence in addition, loss or damages
d) Direct relation between the damage and the act caused.
or omission a) Binding force
b) Proof of loss for injury
c) Liability for damages of a person for exercising his
4. Person in whose favor the obligation is legal rights
constituted. d) Preservation of interest of promisee
a) Oblonger
b) Obligor 11. Damages awarded for mental and physical
c) Obligee anguish.
a) Exemplary
b) Nominal d. An eleatory contract
c) Temperate
d) Moral 3. The following statements pertain to the cause of a
contract. Which statement refers to motive?
12. The right of the creditor that is enforceable a. It is the essential reason of a contract
against a definite debtor is b. It is always known to the contracting parties
________? c. Its illegality does not affect the validity of the
a) Personal right contract
b) Moral right d. There will be no contract without it
c) Natural right
d) Real right 4. When there is concurrence of offer and
acceptance, there is
13. A contract is valid if it is not contrary to the a. Payment c. Consent
following, except? b. Consignation d. Tender of payment
a) Public Policy 5. An absolutely simulated or fictitious contract is a.
b) Good Ethics Void c. Rescissible
c) Public Order b. Voidable d. Unenforceable
d) Law
6. A contract where both contracting parties are
14. It is a meeting of minds between two persons incapable of giving consent is
whereby one binds himself, a. Void c. Unenforceable
with respect to the other, to give something or to b. Rescissible d. Voidable
render service.
a) Obligation 7. If mistake, fraud, accident or inequitable conduct
b) Agreement has prevented a meeting of the minds of the parties
c) Contract to a contract, the proper remedy is
d) Covenant a. Ratify the contract
b. Ask fro specific performance
15. What does good faith mean? c. Annulment of the contract
a) Fair business d. Reformation of the contract
b) Fair agreement
c) Fair job 8. Not requisite fro the validity of a contract
d) Fair dealing a. Consent
b. Object
c. cause
1. A delivered his bracelet to B for B’s necklace. No d. Delivery
written agreement was signed by the parties. Which
of the 9. The contract must bind both contracting parties
following is appropriate description of the contract a. Consensuality of contract
between A and B? b. Simplicity of contract
a. Onerous and bilateral c. Mutuality of contract
b. Onerous and innominate d. Relativity of contract
c. Bilateral and innominate
d. Aleatory and nominate 10. A stipulation in favor of a third person
a. Stipulation pour autrui
2. A contract where the cause with respect to each b. Stipulation pour over
contracting party is the prestation of the promise of c. Assignment of credit
a thing or d. Pactum commissoruim
service by other is
a. An onerous contract
b. A gratuitous contract 11. A contract to make a deposit, to make a pledge
c. An innominate contract or to make a commodatum is
a. Consensual
b. Real contracts 18. If one debt is P12,000 and other is P6,000 and
c. Solemn contracts the debtor without making any application of
d. Formal contracts payments gives
P3,000. How should said payment be applied,
12. A contract where consent is given through presuming that both debts are of the same nature
mistake, violence, intimidation, undue influence or and burden?
fraud is a. The payment will be applied to the P12,000 debt
a. Rescissible b. The payment will be applied to the P6,000 debt
b. Voidable c. The payment will be applied equally
c. Unenfoerceable d. The payment will be applied proportionately
d. Void
CONTRACTS
13. A contract with a cause distinct from the selling 1. The principle that contracting parties may
price is establish such stipulations, clauses, terms and
a. Lesion conditions as they
b. Cession may deem convenient, provided they are not
c. Dation contrary to law, moral, public policy and public
d. Option order; refer to the
principle of.
14. A is indebted to B with C as guarantor B assigns a. Liberty of contract
the credit to D, who in turn assigns the credit to C. b. Relatively of contract
Which is c. Consensuality of contract
correct? d. Mutuality of contract
a. The obligation of A is extinguished
b. The assignment to C did not affect the obligations 2. A offered to sell her watch to B for P1,000. B
of C as guarantor offered to buy the watch for P800 but it was rejected
c. The assignment by B to D extinguished the by A. when B turned to go away. A called him and
guaranty said she is now willing to sell the watch for P800.
d. C becomes the new creditor of A may B refuse to buy said watch?
a. No, because B’s offer of P800 was accepted by A.
15. Solidarity on the part of the obliges b. No, there is a meeting of the minds between the
a. Active solidarity parties or the subject matter and the cause of the
b. Passive solidarity contract.
c. Mixed solidarity c. Yes, because B made a counter offer which was
d. Casual solidarity rejected by A.
d. Yes, because the agreement is under the statute
16. This will cure the defect of an unenforceable of frauds.
contract
a. Acknowledgement 3. A insured his residential house for P5,000,000 on
b. Confirmation January 1, 2009. On June 30, 2009 B burned the
c. Ratification insured property. Which is not correct?
d. Referendum a. A can proceed against the insurer and collect the
P5,000,000 policy
17. Characteristics of void contracts, except b. The insurer shall be subrogated to the rights of A
a. Defense of illegality cannot be waived after payment to A.
b. Cannot be ratified c. After payment the insurer shall have the right to
c. Action for declaration of inexistence does not proceed against B.
prescribe d. A should proceed against B, the guilty party and
d. The inexistence can be assailed by the third not the insurer.
person
4. A sold to B his cow for P5,000. No date is fixed by
the parties for the performance of their respective
obligations. The obligation of A is
a. To deliver the cow immediately as there is a
perfected contract
b. To deliver the cow within the reasonable time
from the perfection of the contract.
c. To deliver the cow upon the payment of B of
P5,000
d. To rescind the contract as there is no time fixed
for the delivery and payment.
5. Contract which has no effect at all
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
6. A contract where the fulfillment is dependent
upon the chance, so the values may vary because of
the risk or chance.
a. Commutative
b. Aleatory
c. Remunerative
d. Gratuitous
7. A lost in gambling and as payment executed a
promissory note in favor of winner, B. later, B
assigned the note to C. may C successfully recover
from A?
a. Yes, if C is not aware that it is in payment of a
gambling debt
b. No, because B cannot recover, so also cannot the
assignee
c. Yes, because B can recover, so also the assignee
can.
d. No, because promissory notes can only be
negotiated but assigned.
8. A shipped his cargo in B’s vessel. B and C entered
into a contract for C to unload the cargo from the
ship’s hold. In the lifting operations, A’s cargo was
damaged, which is correct?
a. A may go against C and sue C for damages
b. A may go against either B or C and sue for
damages
c. A may go against both B & C and sue for damages
d. A may go against B and sue for damages.
9. Pledge, deposit and commodatum are
a. Consensual
b. Real Contracts
c. Solemn contracts
d. Formal contracts
10. When one of the contracting parties is compelled
by a reasonable and well-grounded fear of an
imminent and grave evil upon his person or
property, or upon the person or property of his
spouse, descendants or
ascendants to give his consent, there is
a. Violence
b. Mistake
c. Intimidation
d. Undue influence
11. Sometimes referred to as conditional precedent
a. Casual condition
b. b. Potestative condition
c. Suspensive condition
d. resolutory condition
12. If a third person pay for the debtor with the
consent of the debtor, he
a. Can recover only in so far as the payment has
been beneficial to the debtor
b. Can recover the amount he has paid but he shall
not acquire the rights of the creditor
c. Can recover the amount he has paid or the
payment that has benefited the debtor whichever is
lower.
d. Can recover the amount he has paid and he shall
acquire the rights of the creditor such as those
arising from a mortgage, guaranty or penalty
13. A obtained from B a loan for P1,500 with interest
at 10% per annum, the payment of which loan was
secured by a guaranty secured by C. after the
maturity of the loan, D a friend of A, went to B and
paid the latter, without the knowledge of A, P1,400
for said loan and thereupon B signed and delivered
to D a receipt of this tenor “Received from D P1,400
in full payment of A’s obligation in my favor. Sgd. B”.
Which is correct?
a. D may recover from A the amount of obligation,
that is P1,500, because A was benefited up to P1,500
b. D may recover from A P1,500 plus interest
c. D may recover from A P1,400 plus interest
d. D may recover from A P1,400 without interest.