Professional Documents
Culture Documents
Mock Depa RFBT 1
Mock Depa RFBT 1
Cebu City
Obligations and Contracts Mock Departmental Exam Atty. Esteban C. Pascua, CPA, JD
1. S sold his only car for P100,000.00 to B. Unknown to S, B bought the car from him
so that he could use the same in a bank robbery. What is the status of the sale of
the car by S to B?
a. The sale is voidable because of the failure of disclose his motive to S.
b. The sale is valid because the illegality of the motive of the parties to the contract
does not have any effect on its validity.
c. The sale is void because the motive of B is illegal.
d. The sale is rescissible at the instance of S would be damaged by the illegal motive of
B.
2. The action for annulment must be brought within four years. Which of the following
is false with respect to the reckoning of the beginning of the prescriptive period?
a. In cases of intimidation, violence and undue influence, the period begins from the
time the defect in the consent ceases.
b. In case of mistake, the period begins to run from the time it was committed.
c. In case of fraud, the period begins to run from the discovery thereof.
d. In cases of contracts entered into by minors or other incapacitated persons, the
period runs from the time guardianship ceases.
3. When bilateral contracts are vitiated with vices of consent, they are rendered.
a. Rescissible c. Void
b. Voidable d. Unenforceable
6. The following, except one, are the characteristics of void or inexistent contract.
Which is the exception?
a. They are not subject to ratification
b. The action or defense for declaration of the nullity or inexistence of the contract does
not prescribe.
c. The right to raise defense of illegality cannot be waived.
d. The defense of illegality of the contract is available to third persons whose interest is
not directly affected.
7. It is the act of making intelligible what was before not understood, ambiguous, or not
obvious.
a. Interpretation c. Ratification
b. Annulment d. REformation
8. Caloy the guardian of Martinez bought a fertilizer for land cultivation from Jonas for
P400,000 but the market value is only P320,000. The contract is:
a. Voidable c. Rescissible
b. Valid d. Unenforceable
10. Three of the following are void contracts. Which is the exception?
a. Absolutely simulated contracts
b. Contracts where the causa is immoral
c. Contracts to prevent a known supporter of a political rival from voting for his
candidate for a valuable consideration
d. Contracts with valid consideration but with unlawful motives
12. The rule is that where the language of a contract is plain and unambiguous, its
meaning should be determined without reference to extrinsic facts or aids.
a. True b. False
13. Where the language of a written contract is clear and unambiguous, the contract
must be taken that which, on its face, it purports to mean, unless some good reason
can be assigned to show that the words should be understood in a different sense.
a. True b. False
14. The following agreements are covered by the Statute of Fraud. Choose the
exception.
a. An oral contract of partnership where the contribution in money or personal property
amounts to P3,000 or more.
b. An oral special promise to answer for the debt, default or miscarriage of another.
c. An oral agreement which by its terms is not to be performed within one year from
the making thereof.
d. None of the choices.
15. Orencia is the owner of a car which was sold by Say without authorization in favor of
Billy. The contract between Say and Billy in so far as Orencia is concerned is
a. Voidable c. Unenforceable
b. Valid d. Rescissible
16. The action for annulment on the ground of fraud shall be brought with 4
years from the time of the perfection of contract.
a. True b. False
17. Misrepresentation made in good faith is not fraudulent but may constitute error.
a. True b. False
18. Rescission implies that there is a contract that, while initially valid, produces a lesion
or pecuniary damage to someone.
a. True b. False
19. Elementary is the principle that the validity of a contract precludes its rescission.
a. True b. False
21. Andy is the representative of Babes, an absentee sells a house and lot valued at
P1,000,000 for only P600,000. The contract is:
a. Rescissible c. Voidable
b. Valid d. Unenforceable
22. The usage or custom of the place shall be borne in mind in the interpretation of the
ambiguities of a contract and shall fill the omission of stipulations which are
ordinarily established.
a. True b. False
23. The interpretation of obscure words or stipulations in a contract shall favor the party
who caused the obscurity.
a. True b. False
24. In order to judge the intention of the contracting parties, only their preceding acts
shall be considered.
a. True b. False
25. However general terms of a contract may be, they shall not be understood to
comprehend things that are distinct and cases that are different from those upon
which the parties intended to agree.
a. True b. False
26. Contracts are effective and binding only between the parties, their assigns and their
heirs. Three of the following enumerations are exceptions as provided by law. Which
does not belong to the exception?
a. Where one of the parties to the contract dies and thereafter a suit is filed on the
basis of the contract.
b. Where the obligations arising from contract are not transmissible by stipulation or by
provision of law.
c. Where the obligations arising from contract are not transmissible by their nature.
d. Where there is a stipulation in favor of a third party
27. Is a remedy granted by law to the contracting parties and even to third persons, to
secure the reparation of damages caused to them by a contract even if this should
be valid, by restoration of things to their condition at the moment prior to the
celebration of the contract?
a. Ratification c. Rescission
b. Annulment d. Enforcement
28. It entails the return of the benefits that each party may have received as a result of
the contract.
a. Ratification c. Annulment
b. Rescission d. Mutual restitution
29. A court's purpose in examining a contract is to interpret the intent of the contracting
parties, as objectively manifested by them.
a. True b. False
33. When A voluntarily takes charge of the neglected business of B with the latter’s
authority where reimbursement must be made for necessary and useful expenses,
there is a:
a. Contract of agency c. Negotiorum Gestio
b. Quasi contract d. Solutio Indebiti
41. To which of these modes of special payment is the law on sales applicable?
a. Dacion en pago c. Tender of payment and considnation
b. Cession en pago d. Application of payment