No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

Regulatory Framework for Business Transactions

Law on Contract (Part - One)

1) It is a meeting of minds between two persons whereby one binds himself, with respect to the
other, to give something or to render some service.
a. Quasi-contract
b. Crime
c. Quasi-delict
d. Contract no consent
✓
-
,
2) Which primarily distinguishes a contract from quasi-contract and quasi-delict?
a. Presence of prestation ¥ ↳ injury due to
b. Presence of vinculum negligence
✓c. Presence of consent unjust enrichment
d. None of the above

3) Which of the following principles regarding obligations arising from contract is incorrect?
a. Obligations arising from contracts have the force of law between contracting parties.
b. Obligations arising from contracts should be complied with in good faith.
c. Both a and b
/ d. Neither a nor b

4) It is the stage of contract when the parties come to agree on the terms of the contract.
a. Conception stage 1st stage ( Negotiation ; no meeting of Minas ) BARGAINING
/b. Perfection stage 2nd stage ( birth : elements of con
c. Consummation stage 3rd stage c termination )
d. None of the above

5) In which stage of contract is consent between the parties not yet present?
/a. Conception stage
b. Perfection stage
c. Consummation stage
d. None of the above
starting JULY 1,2013 legal int le 't
T
-

6- 6) D borrowed P100,000 cash from C and signed a one-year interest bearing promissory note with
USURY LAW 24% interest per annum. At the maturity date of the note, C refused to pay the P24,000 interest
↳ suspended and invoked that the legal interest is only 6% per annum. What principle of contract requires D
to pay the agreed rate of 24% interest per annum?
conventional Interest ✓ a. Obligatory force of contract contract of: loan
than legal int b. Mutuality of contract
.
perfected through delivery of cash → real contract
higher
.

Agreement to pay interest → formal 1 solemn contract

=
•

c. Relativity of contract
↳ allowed as long as
immoral
d. Autonomy of contract ↳ should be in
writing to be valid .

it is Not in
per year
I e.g promissory note
241 7)
,

( highest : R enrolled in a Review Center for a face to face review. Due to the pandemic, the face to face
.

review agreed by the contracting parties becomes legally impossible. R demanded for the refund
of his tuition fees on the ground of fortuitous event. However, instead of refunding the whole
tuition fees, the Review Center insisted on returning only the 50% of the fees and asked R to
attend the online review class. However, R disagreed with the proposal. Despite R’s objection,
the Review Center proceeded with the online review class and returned only 50% of the fees to
R. What principle of contract is violated by this action of the Review Center?
a. Obligatory force of contract contract
VALIDITY & COMPUANLE of
/ b. Mutuality of contract
c. Relativity of contract
is not allowed to be deft
d. Autonomy of contract
the will one of
the
on

contraHing parties

1|P a g e RLACO/DSALES/NVALDERRAMA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

8) E is an employee of a big auditing firm. E was granted a signing bonus amounting to P1,000,000
by the auditing firm for topping the CPALE. The contract of employment provides that E must
stay in the firm for a period of at least one year. In case he failed to stay for at least one year in
the firm, he must return the said signing bonus to the firm. E voluntarily agreed to such
stipulation. What principle of contract allows E and his employer to enter to make such provision
in the contract of employment?
a. Obligatory force of contract
b. Mutuality of contract law

shouldamlffatm.be#PvblMorals
ipgf.ryderl
c. Relativity of contract
✓d. Autonomy of contract n liberty contract ; not absolute ;
\
-

9) Except in case of property regime regarding marriage settlement, what shall govern the Good customs
relationships, rights and obligations of husband and wife who validly entered into a contract of
marriage?
a. Provisions of pre-nuptial agreement
✓ Provisions of Family Code of the Philippines
b. HIN can only decide on property regime .

c. Customs in the Philippines

d. Provisions of Bible

10) Which of the following stipulations agreed by the contracting parties is valid?
a. A stipulation allowing the common carrier to exercise a diligence lower than the diligence
of good father of a family for the transportation of goods VOID
b. A stipulation allowing the common carrier to exercise a diligence lower than extraordinary
diligence for the transportation of passengers VOID ; goods ONLY
c. A stipulation exempting hotel-keepers from liability in case of loss of things brought
inside the hotel by the guests VOID
-d. A stipulation prohibiting an audit manager of auditing firm from transferring to a major
competitor in the NCR for a maximum period of 3 years

11) A ordered a Chicken Joy from a famous fast-food chain. Due to negligence, the fast-food chain
delivered a friend towel instead of fried chicken. B, the boyfriend of A, demanded payment for
damages from the fast-food chain but the latter refused. This prompted B to file a civil action for
breach of contract against the fast-food chain. What principle of contract is violated when B filed
the action against the fast-food chain? takes effect only between the contracting parties
the contract ,

a. Obligatory force of contract

•

b. Mutuality of contract their heirs and assignees .

the contract ;
✓ c. Relativity of contract Third persons shall not be affected by
.

d. Autonomy of contract 3 P is not allowed to fire an action for

breach of contract

12) D is a student of a university. D lives in a dormitory near the university. Due to the adverse
effects of the pandemic, the university stopped its operations. The said dormitory is affected as D
didn’t renew the lease agreement. This prompted the owner of dormitory to file a case against
the university. Will the action prosper?
a. Yes based on stipulation pour autrui
b. No because it is in violation of the principle relativity of contract
-
c. Yes based on principle of abuse of rights
d. No because the university does not have juridical personality when it stops its operation
rn affects the right of a 3rd pen
on

13) Which of the following contracts may be assailed by a third person?

)
a. Voidable contract defective content ( VALID & BINDING until ANNULLED
-

b. Rescissible contract affects the right of a 3 P VALID &

r
c. Both a and b ¥
-

µ Blnbinbyfnfif
CANCELLED by the
)
d. Neither a nor b contract intended to defraud
creditor I file an action : defrauded creditor 13M )
14) Which of the following contracts is not allowed to be assailed by a third person?
Unless ratified
✓ a. Unenforceable contract Walid but not binding not enforceable by court action
)
by the proper party
,

b. Void contract GP can ask for the Whity of such ampat)

c. Both a and b
d. Neither a nor b
↳ invalid , so not binding
BUT some void contracts
3ps
affects the night of

2|P a g e RLACO/DSALES/NVALDERRAMA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

15) H and W are legally married since 2001. On 2021, H and K secretly entered into a bigamous
marriage. On year 2022, H died. W filed an action for declaration of nullity of the bigamous
marriage between H and K. Will the action prosper?
a. Yes based on stipulation pour autrui
b. No because it is in violation of the principle relativity of contract
-c. Yes in order to determine the true heir
d. No because W is not a party to the second contract of marriage

16) Loydie has an exclusive contract with ABZ-ZBN. While his contract with the said network is still in
effect, AMG convinced Loydie to have a movie project with them. After the release of the movie,
ABZ-ZBN filed an action for damages against AMG. Will the action prosper?
3D is in bad faith
a. Yes based on stipulation pour autrui
b. No because it is in violation of the principle relativity of contract
-c. Yes because AMG induced Loydie to violate his contract with ABZ-ZBN
d. No because there is no privy of interest between AMG and ABZ-ZBN

17) D has a matured obligation amounting to P100,000 to C. Despite repeated demands from C, D
refused to pay the obligation. This prompted C to file a civil action to collect a sum of money
Rescissible Con .
before the trial court which ruled in favor of C. C filed a motion for issuance of writ of attachment
to execute the judgment debt against D. When D obtained knowledge of the issuance of writ of
↳ defraud attachment, he immediately sold his only land to G, his girlfriend, who has knowledge of the
pending action. This prompted A D to file an action for the cancellation of the sale of land of D to
creditor G. Will the action prosper? c

a. Yes based on stipulation pour autrui

b. No because it is in violation of the principle relativity of contract
✓ Yes because the contract of sale is intended to defraud C
c.
d. No because C is not a party to the contract of sale

18) D borrowed P1,000,000 cash from C. M mortgaged his land to secure the loan of D. The deed of
mortgage is registered in the Registry of Deeds and annotated to the title of the said land.
Registration Afterwards, M absolutely sold the said land to B, who immediately possessed the land. D
defaulted in the payment of his loan to C. This prompted C to foreclose the mortgage on the
↳ constructive
land. May C foreclose the land already possessed and owned by B?
notice to the a. Yes based on stipulation pour autrui
JP is in bad
whole world
b.
c.
No because it is in violation of the principle relativity of contract
Yes because the mortgage is registered
faith
,
↳ wherever the land d. No because C is not a party to the contract of sale of land
will follow declare
goes mortgage
,
r
19) Which of the following types of elements of contract is necessary for validity of contract? ←
✓ a. Essential elements one mire elements are contract is void ( NULLITY )
talking
- or

normally exists in a contra It unless removed or waived

,

b. Natural elements
normally
-

saying"fa ofgisthnvphuhgpmntier Pamir

c. Accidental elements do not
by the
-

d. None of the above of

20) Which of the following is a natural element in a contract of sale?

a. Determinate thing
b. Price certain in money or its equivalent
- c. Warranty against eviction
d. Meeting of minds of buyer and seller

21) Which of the following is an accidental element in a contract of loan?

a. Cash or consumable thing essential
b. Delivery of cash or consumable thing
-

essiebniyinaittrre
# unmet
c. Meeting of minds of lender and borrower essential -
consent
it will not exist
-d. Agreement to pay interest
us must be in writing ; w/o agreement
22) Which of the following is not an essential element of a consensual contract?
-

a. Consent of the contracting parties

b. Object certain which is the subject matter of the contract
c. Cause of the obligation which is established
Id. Delivery of subject matter of contract to
essential element
c- unsent in reallmtratt
O object
perfected through
-

↳
G- cause
delivery
3|P a g e RLACO/DSALES/NVALDERRAMA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

23) Which of the following is not an essential element of a real contract?

paulang
a. Consent of the contracting parties o
- l Contract of Loan -
.

odgym Pagpaagpahiram
contract of Comm
,

b. Object certain which is the subject matter of the contract 2 non consumable

Deposit
.

c. Cause of the obligation which is established 3 Contract of thing

it
.

d. Delivery of subject matter

-
of contract formality ↳ paghabihinhgg.am
✓e. Execution of solemnity required by law
↳ essential element in a solemn 1 formal contract 4.) Cmtralt of Pledge
24) Which of the following is not an essential element of a real contract?
↳
pay satanta ng
a. Consent of the contracting parties solemn
7
b. Object certain which is the subject matter of the contract tq
movable property
c. Cause of the obligation which is established perfected by
✓d. Delivery of subject matter of contract the execution of agreement
e. Execution of solemnity required by law formality RQD by ( e. q marriage tinny ,

donation of immovable
.

law ,

25) Which of the following contracts is perfected by the execution of the formality required by law for movable#5
its validity?
a. Consensual contract meeting of minds
-

407 - b. Solemn contract

→ if nawada ang
147 c. Real contract -

delivery
d. None of the above formality VOID , .

26) Which of the following contracts is perfected by the delivery of the subject matter of contract?
/a. Contract of loan
b. Contract of sale
c. Contract of partnership
d. Contract of common carrier

27) Which of the following contracts is perfected by mere consent?

a. Contract of deposit Real indicated
t int of the scarred loan must be
b. Contract of antichresis Formal : in writing ; principal
/c. Contract of subscription of shares of stocks
d. Contract of marriage → solemnizing officer; man Imman ; marriage license etc .

B D
A
↳ consignments 28) Which of the following contracts must be in a public instrument in order to be valid and
enforceable? for )
""M a. Contract of sale of personal property at a price of P500 or more ( TANTE OF FRAUD ; in writing
enforceability
t.nQDwn.mg /
b. Contract of lease of real property for a period longer than one year for
c. Contract of donation of immovable property "
d. Contract of guaranty public Instrument
enforceability
enforceability
(statue of frauds )
-

enforceability Deed of Donation & Reed of Acceptance

29) L lend and delivered P100,000 cash to B as consideration for the oral contract of loan. They O
orally
agreed that B will pay 24% interest per annum. After one month, L filed an action against to B to
-

compel B sign the deed of loan with principal of P100,000 with 24% interest per annum. In which
agreement may L legally compel B to sign?
- a. Contract of loan of P100,000
b. Agreement to pay 24% interest per annum VOID : not in
-

writing
c. Both a and b
not applicable
d. Neither a nor b →
Down payment
partially executed
-

A STATUTE OF FRAUD ✓ →
30) S orally sold a specific car to B at a price of P100,000. B paid earnest money amounting to
P10,000 at the date of oral agreement. G orally guaranteed the balance of P90,000 in favor of S
who accepted the said undertaking. Which agreement may be legally compel by a court action to
execute the deed?
✓ a. Contract of sale valid & enforceable partially
-

executed
b. Contract of guaranty Valid but unenforceable orally
-

c. Both a and b
d. Neither a nor b

31) In which of the following contracts is the service compensated the cause of the agreement?
a. Onerous contract →Valuable consideration
b. Gratuitous contract → liberality 1 Generosity
✓c. Remuneratory contract → service
d. None of the above

4|P a g e RLACO/DSALES/NVALDERRAMA
⑧ Contract of sale consensual contract
or
perfected through
-

mere consent .

XP Ni sale of land by the agent

in the name
of principal
* for the sale to be valid the authority
,
=

of an agent to sell the

land
must be in writing
Contract of PNTP a consensual contract

Xp N : contribution of immovable or
real
property
←
form,
Isnt MN contract co
-

NAAR Hep
article of Hannen hip
-

FORMALITY :

[ in VTY OF

attached to
Real prop -
must be

sale of land -

in tissue paper
us destroyed .
. .

Unenforceable -
no evidence
-
cant testify
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
-
'
Gmail : www.icarecpareview@gmail.com
"

rn always
32) Which of the following contracts is essentially gratuitous?
lease
/a. Contract of commodatum =. it may rent ;
b. Contract of loan
c. Contract of agency 7
d. None of the above
Carat or onerous
↳ it may
int
do ang
agent
↳ it may swee

33) Which of the following contracts can stand by itself?

✓a. Contract of sale lb principal contract
b. Contract of pledge
c. Contract of guaranty
d. Contract of mortgage ] Accessory contracts,
↳ it follows the principal
34) Which of the following contracts is a preparatory contract?
a. Contract of sale
- Contract of partnership
b.
↳ entered into to facilitate
c. Contract of common carrier other contracts
d. Contract of loan
e. 9 contract
.
of agency
35) Which of the following contracts means “I do that you may give”?
a. Do ut des give give
b. Do ut facias give do
c. Facio ut des do girl
I
d. Facio ut facias do do

36) What shall primarily govern an innominate contract?

✓ a. The stipulation of the parties AUTONOMY
b. The provisions of Obligations and Contracts and
c. The rules governing the most analogous contracts 3rd
d. The customs of the place 4th

37) Which of the following is a commutative contract? rave

a. Contract of donation ↳ of eavirulent
GRAMPUS b. I exchange
Contract of commodatum kn ALMOST
,c. Contract of lease
d. All of the above

38) It is a contract whose fulfilment depends upon chance.

a. Contract of adhesion
of insurance
✓ Aleatory contract e. g contract
b.
suspensive condition
.

c. Unilateral contract ↳ upon chance -

d. Reciprocal contract

39) It is also known as “fine print contract” or “take it or leave it contract.

/ a. Contract of adhesion in case of ambiguity
b. Onerous contract
↳ in favor of
adherer
c. Bilateral contract
d. Executory contract ↳
perfectly valid contract
40) Which of the following contracts is within the ambit of the concept of statute of fraud?

:
a. Executory contract
b. Executed contract
c. Both a and b
d. Neither a nor b

41) What is the extent of the binding effect of a contract?

a. The parties are bound only up to the fulfilment of what has been expressly stipulated in
the contract.
b. The parties are bound only by the consequences of contract.
c. The parties are bound not only to the fulfilment of what has been expressly stipulated in
the contract but also to all the consequences which, according to their nature, may be in
keeping with good faith, usage and law.
d. None of the above

5|P a g e RLACO/DSALES/NVALDERRAMA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

42) How shall the court determine the nature of contract entered by the contracting parties?
/a. By the principles of law
b. By the stipulation of parties
c. By the customs of the place
d. By religious doctrine

43) It refers to the meeting of minds between the contracting parties as regards the object and -

cause of contract.
= a. Consent
b. Prestation
c. Consideration
d. Formality

44) What theory is followed by the New Civil Code of the Philippines to determine the exact moment
of perfection of contract entered through telegram?
a. Reception theory
b. Manifestation theory
perfected from the moment the acceptance
came
✓c. Cognitive theory )
to the knowledge of an offeror ( actually
-

d. Expedition theory
→ arguable
45) What is the disputable place of perfection entered through telegram?
a. In the place where the offer was accepted or letter

IF SILENE / b. In the place where the offer was made

c. Domicile of offerer
d. Domicile of acceptor
x
46) Which of the following statements about consent is incorrect?
✓ a. A qualified acceptance constitutes a counter-offer. negotiating
b. The person making the offer may fix the time, place and manner of acceptance, all of
✓
which must be complied with. → contract is void it not complied
✓ c. An offer made through an agent is accepted from the time acceptance is communicated
to the agent not necessarily to the principal.
/d. An acceptance must be expressed but never implied. common carrier
cannot manage their prop
47) To whom shall rn
.

civil interdiction, insanity, death or insolvency occur before the acceptance in

order for the offer to become ineffective?
occur before meeting of minds
a. Offeror
b. Acceptor ↳ the contract is 110117 .

c. Either a or b
d. Both a and b

48) Which of the following statements about acceptance is incorrect?

✓a. An option contract unsupported by consideration or option premium is valid and binding
and may not be withdrawn. OPTION CONTRACT TO BE VALID MUST BE SUPPORTED BY option money Premium /
b. Business advertisements are mere invitations to make an offer. ↳ W/o NOT BINDING =

c. Advertisements for bidders are simply invitations to make proposals. -

d. None of the above.

49) Who among the following is capacitated to give consent to a contract?

a. Demented person deaf mute
-

not prohibited , only discouraged ( Both Parties )

b. Minor who do not know
11 P )
c. Insane person how to write CONTRACT is VOIDABLE & UNENFORCEABLE
-

/d. Person with lucid interval because unsent is defective

50) S, an adult, sold in writing his specific motorcycle to B, a minor, at a price of P10,000. What is
-

the status of the contract of sale?

a. Rescissible
valid & binding until anvil ed
REMEDY :
Tb. Voidable -

Guardian
c. Unenforceable
d. Void )
annulment
Minor a -

capacitated

6|P a g e RLACO/DSALES/NVALDERRAMA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

51) I, an insane, leased in writing a real property to B, a demented person, at a monthly rental of
P10,000 for five years. What is the status of the contract of lease?
a. Rescissible
b. Voidable VOIDABLE VALID
valid but not binding
G → ratify →
-r
ratify r
-

/c. Unenforceable -
-

d. Void Both 6 to ratify A VALID -

52) M, a minor, lent and delivered P5,000 cash to N, a minor. Afterwards, N remitted the cash to his
mother who used the said cash to buy groceries for the family. What is the status of contract of
loan?
a. Rescissible voidable @ part of Me
/b. Voidable
c. Unenforceable
d. Void
* till an action to collect money implied ratification
-

-
53) D delivered a specific laptop to B intended as a contract of deposit. Unfortunately, B thought the
delivery is by virtue of a contract of commodatum.
r What is the status of this real contract?
a. Rescissible no meeting of minds no consent
-

b. Voidable
c. Unenforceable
d. Void a invalid and not binding REMEDY : declaration of nullity
✓
-

action does not prescribed

54) Using the same data in preceding number, what is the legal remedy available to injured party?
- a. Action for declaration of nullity of contract
b. Action for rescission of contract
c. Action for annulment of contract
d. Action for reformation of instrument
sell properties to each other CHIN)
a can
55) H and W are legally married. They entered into a pre-nuptial agreement of complete separation
of property. During their marriage, H threatened to kill W with a loaded gun which prompted the
latter to sign a deed of sale of his specific car to H at a price of P100,000. What is the status of
the contract of sale of car? *
consent is vitiated
*
IF A cop
a. Rescissible
CPG
T " " D
↳ defective
✓ b. Voidable
c. Unenforceable
d. Void

56) Using the same data in preceding number, what is the legal remedy available to injured party?
a. Action for declaration of nullity of contract
b. Action for rescission of contract
/ c. Action for annulment of contract seller has 4 un until matapos ang threat
intimidation /
d. Action for reformation of instrument

57) Which of the following vices of consent if committed by a third person may result to voidability of
contract? Fraud
)
to be voidable 's
.

a. Mistake and/or Fraud

undue influence
must be committed by contracting
-

b. Fraud and/or Undue Influence

c. Mistake and/or Undue Influence Mistake
-

parties

fnifienindatim f 7pm raising

/ d. Violence and/or Intimidation
parties
58) D borrowed P200,000 cash from C. At the maturity date of the loan, D failed to pay his
obligation. As a result, C sent a demand letter to D stating that “He will be constrained to file the
necessary action against D if the latter will not sign the deed of mortgage on his land.” Due to
this threat, D mortgaged in writing his specific land in favor of C. What is the status of the
contract of mortgage?
✓ a. Perfectly valid Threat -

gist
I lawfrl
b. Voidable
c. Unenforceable does not vitiate consent
d. Void

7|P a g e RLACO/DSALES/NVALDERRAMA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

59) Which type of mistake will make the contract voidable? D SHOULD BE SUBSTANTIAL MISTAKE
-

a. Error as to the solvency of the other party.

simple
[
b. Error as to the motive of the party.
MISTAKE c. Error as to estimates.
/d. Mutual error as to the legal effect of an agreement when the real purpose of the parties
-

is frustrated

60) Which of the following errors will not make the contract voidable?
a. Mistake which should refer to the substance of the thing which is the object of the
contract.
b. Mistake which should refer to those conditions which have principally moved one or both
parties to enter into the contract.
/ c. Mistake as to estimates.
d. Mistake as to identity or qualifications of one of the parties -
wherein such identity or
qualifications have been the principal cause of the contract.

61) S sold an authentic Coach Bag to B at a price of P10,000. At the date of delivery, S delivered a
counterfeited Coach Bag. What is the status of the contract of sale?
REMEDY damages
:
/ a. Perfectly valid
breach contract b. Voidable
incl DENTAL FRAUD a fraud in the performance
-

DURING meeting of
for of
contest
c. Unenforceable does not vitiate
-

ORM 6 yrs
"
minds , Wala
d. Void
WRITTEN 10 yrs purer fraud
62) Using the same data in preceding number, what is the legal remedy available to B?
a. Action for declaration of nullity of contract
- Action for indemnification for damages for breach of contract
b.
c. Action for annulment of contract
d. Action for reformation of instrument

63) A and B are identical twins. A applied for a life insurance. At the date of medical examination, A
asked B, who is physically fit, to attend. After the examination, the insurance company approved
the application for life insurance covering the health of A. What is the status of the contract of
life insurance?
a. Perfectly valid causal Erard ( Dolo caramel
/ b. Voidable
↳ vitiates content
c. Unenforceable
d. Void

64) Using the same data in preceding number, what is the legal remedy available to the insurance
company?
a. Action for declaration of nullity of contract
b. Action for indemnification for damages for breach of contract
/ c. Action for annulment of contract 4 yrs from the discovery of fraud
d. Action for reformation of instrument

65) Which type of fraud will make the contract voidable?

a. Dolo causante annulment
-

✓
-

b. Dolo incidente damages

- ↳ vitiates unsent
c. Mutual fraud offset
1 no remedy
-

d. Reciprocal fraud offset

-

"
"
those who go to com , most do so with clean hands
66) Which of the following statements is incorrect?
a. Misrepresentation by a third person does not vitiate consent, unless such
misrepresentation has created substantial mistake and the same is mutual.
b. Failure to disclose facts, when there is duty to reveal them, as when the parties are
bound by confidential relations, constitutes fraud.
✓ The usual exaggerations in trade, when the other party had an opportunity to know the
c.
facts, are in themselves fraudulent. lariat emptor
d. A mere expression of an opinion does not signify fraud, unless made by an expert and
=
the other party has relied on the former’s special knowledge.

8|P a g e RLACO/DSALES/NVALDERRAMA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

MANK ATIK
67) What is the status of absolutely simulated contract?
a. Rescissible ↳
b. Voidable No consent
c. Unenforceable NO meeting of minds
d. Void

:
68) Using the same data in preceding number, what is the legal remedy available to the injured
party?
a. Action for declaration of nullity of contract
b. Action for rescission of contract
c. Action for annulment of contract
d. Action for reformation of instrument

69) What is the status of the intended contract in case there is relative simulation?
I a. Valid and binding ↳ there is intended contract
b. Voidable
The document does Donation Mahal ang
WANT ; contract of
c. Unenforceable
d. Void not show the x -

Donors tax
)
tire intentions of party
Her
. Executed : Deed of sale
70) Using the same data in preceding number, what is the legal remedy available to the injured
party?
a. Action for declaration of nullity of contract
b. Action for rescission of contract
c. Action for annulment of contract
✓ d. Action for reformation of instrument ; not the contract

71) It refers to the promise or conduct to be performed in the fulfilment or rendition of the
obligations of contract and it may consist of giving, doing or not doing a thing.
a. Consideration
/ Prestation I object
b.
c. Consent
d. Delivery

72) Which of the following is not a requisite of an object of contract?

a. It must be within the commerce of men.
✓ It must be illicit.
b.
c. It must be possible.
d. It must be determinate as to its kind.

73) Which of the following may become the subject matter of contract?
a. Vain hope -
contrary to law & public policy
b. Public land -
outside the commerce of men
✓c. Hereditary right -
banal future inheritance ( before death )
d. None of the above
/
74) Which of the following is not allowed to become a subject matter of contract of sale?
a. Patrimonial property of the state
b. Membership in a nonstock corporation
✓ c. Animal suffering from contagious disease contrary to law & public policy
d. Private market

75) What is the status of the contract if there is no prestation?

-
a. Rescissible
b. Voidable
c. Unenforceable
d. Void

:
76) Using the same data in preceding number, what is the legal remedy available to the injured
party?
a. Action for declaration of nullity of contract
b. Action for rescission of contract
c. Action for annulment of contract
d. Action for reformation of instrument

9|P a g e RLACO/DSALES/NVALDERRAMA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

-End-
For the Glory of God

CONTRACTS
VOID
consent lacking
I
more is
if one or ,
-

object
consideration I cant TIE
if *u are present
perfectly VALID

+1. unenforceable contracts

Agent exceeded / unauthorized
Authority of
-

l .

2 . Both parties are incapacitated

3 covered by statue of fraud
.

unenforceable
if ORAL & executory
-

↳ in writing -
van ,

if executed -

not covered by statue of fraud

↳

B. VOIDABLE
i. vitiated content Einramidaa,my contracting
parties
Mistake
Undue influence y 3P or

violence contracting
parties

insane
2 Contracting parties .

demented
.

minor
not know how to write
-

-
deaf mute who do
-
drunken / hypnotized writs
no the
it
c. Remissible wi writ of
→
Minute
intended to defraud creditor
-

attach men,
i.
the name of the ward
2 Sale entered by the guardian , in
of subj
.

suffered bedim b 3251 valve

.

ward
.
-

by the representative
} contract of administration entered
absentee
.

in behalf of the
Valve if subject
lesion 7251
.

Absentee suffered

IF not All =
perfectly raid

10 | P a g e RLACO/DSALES/NVALDERRAMA