Contributor: Atty. Mendoza, B.

Date Contributed: March 2011

CONTRACTS
1. A with violence in her eyes intimidated her husband B to sell his exclusive property to her. The contract of sale is
A. Rescissible
B. Voidable
C. Unenforceable
D. Void

2. Three of the following instances will render an offer ineffective before acceptance is conveyed. Which one will
not?
A. Civil interdiction of either party
B. Insolvency of either party
C. Insanity of either party
D. Intoxication of either party

3. Which among the following contracts is rescissible?

A. Contracts entered into during a hypnotic spell

m
B. Contracts entered into in a state of drunkenness

er as
C. Contracts entered into to defraud creditors when the latter cannot collect the claims due them

co
D. Contracts where both parties are incapable of giving consent

eH w
4. Which among the following contracts is void?

o.
A. A contract of barter between S, insane and B, 17 years old.

rs e
B. A contract of sale where B, the buyer, twisted the arm of S, the seller, so that S would sign the deed of sale.
ou urc
C. A contract of sale where B, the buyer, aimed a gun at the wife of S, so that S would sign the deed of sale.
D. A contract for the sale of a cow which is suffering from a contagious disease.

5. Contracting parties are free to enter into all kinds of pacts, terms or stipulations provided they are not contrary to
o

law, morals, good customs, public policy or public order. The above is a description of the characteristic of a
aC s

contract known as: [A] Obligatory force of contracts; [B] Mutuality of contracts; [C] Autonomy of contracts; [D]
vi y re

Consensuality of contracts; [E] Relativity of contracts.

6. This is not always an essential element of contract: [A]Form; [B]Consent; [C] Object; [D] Cause.
7. The period when the minds of the seller and the buyer have met on the subject matter and cause of the
sale is called: [A]Consummation of the sale; [B] Perfection of the sale; [C] Generacion of the sale; [D]
ed d

Negotiation of the sale.

8. The stipulation in a contract to the effect that ”the debtor should remain as a servant in the house and
ar stu

in the service of her creditors so long as she had not paid her debt” is void because it is: [A]Contrary to law and
morals; [B]Contrary to public policy; [C]Contrary to good customs; [D] Contrary to public order.
9. Contracts are effective and binding only between the parties, their assigns and their heirs. Three of
is

the following enumerations are exceptions as provided by law. Which does not belong to the exceptions? [A}]
Where one of the parties to the contract dies and thereafter a suit is filed on the basis of the contract; [B] Where
Th

the obligations arising from the 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.
10. Which of these is not a formal contract? [A]Donation of real property; [B] A partnership where there is
sh

contributed real property; [C] A contract of antichresis; [D] Sale of a personal computer.
11. This is NOT a real contract: [A] Deposit; [B] Pledge; [C] Mutuum; [D] Agency.
12. Which of these contracts is consensual? [A] Commodatum; [B] Mutuum; [C} Deposit; [D]
Partnership.
13. When there is concurrence of the offer and acceptance, there is: [A] Payment; [B] Revocation; [C]
Consent; [D] Acceptance.

This study source was downloaded by 100000827208097 from CourseHero.com on 06-03-2021 00:07:48 GMT -05:00

https://www.coursehero.com/file/7923268/CONTRACTS/
 14. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause
which are to constitute the contract. Which of the following constitutes an offer: [A] Advertisement for
bidders; [B]Business advertisement of things for sale; [C] An offer made through an agent; [D] Classified ads in
the newspaper.
15. G sold and delivered her diamond ring to P. It was agreed upon that after ten days, P will name and
fix the price. On the 10 th day, P called up by G by telephone and stated the price at P10,000. G agreed. Is the
sale perfected? [A] No, at the time of the sale the price is not known.; [B] No, the price was left to the
discretion of one of the parties. [C] Yes, the price stated and named by one of the contracting parties was
accepted by the other. [D] No, at the time of the sale, the price was not fixed.
16. Mr. S signed a letter addressed and delivered to Mr. A. The terms of the letter are: (1)an offer to sell
a 500 sq.m. lot for P300,000; (2)an option time up to Dec. 31, 2010 for Mr. A to raise the P300,000; (3) Upon
payment of the P300,000, Mr. S will execute and sign a Deed of Sale. On Dec. 31, 2010, Mr. S sent a letter to
Mr. A asking for a new price of P350,000 for the 500 sq. m. lot. Can Mr. A compel Mr. S to accept the
P300,000 and make him sign and execute a Deed of Sale? [A]Yes, the contract is perfected.; [B] Yes, Mr. S is
already estopped by his signed letter and offer. [C] No, Mr. A did not accept the offer of Mr. S. [D]Yes, there
was actual meeting of the minds.
17. Requisites of a valid object or subject matter, except: [A] Must be possible; [B] Must be determinate
or definite as to its kind; [C] Must be within the commerce of man; [D] Must be licit; [E] Must exist.

m
er as
18. Three of the following maybe valid objects of a contract, except: [A] Impossible things or services; [B]
All services which are not contrary to law; [C] All that are within the commerce of man; [D] All rights that are

co
transmissible.

eH w
19. Requisites of a valid consideration/causa, except: [A] Must exist; [B] Must be true; [C] Must be in money;

o.
[D] Must be licit.
16.
rs e
Which among the following will not make the contract void or without legal effect? [A] absence of cause; [B]
ou urc
illegality of cause; [C] inadequacy of cause coupled with the vices of consent; [D] cause not stated in the
contract.
17. Which among the following is not a vice of consent or the freedom of a person to enter into a contract?
[A]mistake of fact; [B] violence; [C] intimidation; [D] undue influence; [E] Dolo incidente.
o

18. It takes place when the parties do not intend to be bound at all by their agreement: [A] Apparent contract;
aC s

[B]Deed of assignment; [C] Relatively simulated contract; [D] Absolutely simulated contract.
vi y re

19. Simulation of a contract may be absolute or relative. It is relative when: [A] The parties conceal their true
agreement; [B] The parties do not intend to be bound at all; [C] The contract is void. [D] The intention of the
parties is uncertain.
20. There shall be no reformation of contract in the following cases, except: [A]In testamentary wills; [B] When
the real agreement is void; [C] A contract of sale fraudulently made as a contract of lease; [D] Simple donation
ed d

inter vivos with no condition being imposed.

ar stu

21. D borrowed a sum of money from C with a certain rate of interest. C now wants to increase the rate of interest
without the consent of D. What principle in contracts prohibits C from doing so? [A] Autonomy of contracts;
[B]Relativity of contracts; [C]Mutuality of contracts; [D] Consensuality of contracts; [E] Obligatory force of
contracts
is

22. A offered 20 Tamiya cars to B for P1,000 each. B answered by letter that he was willing to purchase not 20 but
30 pieces of said price of P1,000 each. Is the contract perfected? [A]No, because there is qualified acceptance
Th

which constitutes an offer by the buyer; [B] Yes, there is perfected sale because the number of pieces is only
incidental matter in the sale; [C] Yes, because the letter of acceptance was already sent by the offeree; [D] No,
because there is no offer yet of A that is certain.
23. Element without which there cannot be a contract is: [A] Essential element; [B] Natural element; [C]
sh

Accidental element; [D] All of the above.

24. When his father died but before the delivery of the property to him, a son sold his share of the property
inherited. Is the sale valid? [A] No, because future inheritance cannot be sold; [B] Yes, because future
inheritance can be the object of the contract; [C] Yes, because what has been sold is present inheritance; [D] No,
because the son was not the owner due to lack of delivery to him.
25. It is a remedy in equity by means of which a written instrument is made or constructed so as to express or
conform to the real intention of the parties when some error or mistake has been committed. [A] Ratification;
[B]Reformation; [C] Rescission; [D] Annulment.

This study source was downloaded by 100000827208097 from CourseHero.com on 06-03-2021 00:07:48 GMT -05:00

https://www.coursehero.com/file/7923268/CONTRACTS/
 26. Contracting parties are free to enter into all kinds of pacts, terms or stipulations provided they are not
contrary to law, morals, good customs, public policy or public order. The above is a description of the
characteristic of a contract known as: [A] Obligatory force of contracts [B] Building effect of contracts [C]
Autonomy of contracts [D] Consensuality of contracts.
27. Three of the following maybe valid objects of a contract, except: [A] Impossible things or services [B]
All services which are not contrary to law [C] All that are within the commerce of man [D] All rights that are
transmissible.
28. A contract is in the stage of conception when: [A] Negotiations are in progress. [B] There is meeting of
the minds. [C] The contract is perfected. [D] The parties come to agreement.
29. Frank owes Ellise P100,000. Frank knows that on maturity date, he will not be able to pay Ellise, and in
order to prevent attachment of his property by Ellise, Frank, before maturity of his debt, executes a contract
pretending to sell to Alexander his property. Which of the following statements is false? [A] The contract is
binding between Frank and Alexander. [B] Ellise can seek rescission of the fictitious contract. [C] The
contract is not valid for lack of consideration. [D] The contract being simulated and executed to defraud Ellise
is void.
30. Kokey, a minor entered into a contract with Baby, also a minor, in connection with the sale of Laptop

m
computer Vios dual core for P50,000. The parent’s of both parties ratified the contract. The contract is: [A]

er as
Unenforceable [B] valid [C] voidable [D] void.
31. Three of the following contracts are void. Which one is not? [A] Agent’s authority to sell real property

co
eH w
given orally. [B] Oral contract of Partnership where real estate is contributed as capital. [C] Written contract
contemplating impossible services. [D] Contract entered into the name of another person by one who has

o.
been given no authority or legal representation, or who has acted beyond his powers.
rs e
32. Bunso, a minor entered into a contract with Waley, an insane, in connection with the sale of Rizal Park for
ou urc
P300,000. Said contract is: [A] void [B] unenforceable [C] voidable [D] rescissible
33. 8. Boy Kanto entered into a contract of sale wherein Boy Kanto will buy a knife from Jun for P3,000.
However, Boy Kanto bought the knife to kill Karding, his mortal enemy. The contract between Boy Kanto and
o

Jun is: [A] Rescissible [B] Valid [C] Voidable [D] Unenforceable
34. On January 1, 2011, Sunshine borrowed from Mercedes P1M payable on December 31, 2011. As security
aC s

therefore, Sunshine pledged her car to Mercedes with an agreement that Mercedes could use it. On June 1,
vi y re

2011, Sunshine offered to pay the loan in full and asked for the return of the car. Can Sunshine compel
Mercedes to accept payment of the loan and return the car? [A] She can compel Mercedes to accept payment
and return the car because Sunshine, not only has the obligation to pay but also the right to pay. [B] Yes, she
can provided she makes the proper consignation of the money as payment with the court if Mercedes refuses to
ed d

accept payment. [C] No, because the period is for the benefit of the creditor and she may refuse advance
payment. [D] No, because the creditor Mercedes can refuse premature payment offered by debtor
ar stu

Sunshine.
35. 1st statement: The priniciple of “in pari delicto” as applied in a void contract where the cause or object of
the contract is illegal, both parties are at fault thus no remedy could be given to any of the parties, and the court
is

leaves them where they are. 2 nd statement: A contract where the laborer accepts a wage lower than the
minimum wage fixed by law is a kind of contract within the ambit of the application of the “in pari delicto”
Th

principle. [A] Both statements are true; [B] Both are false; [C] First is true, second is false; [D] First is
false, second is true.
sh

Contributor:
Date Contributed: February 2011
1. A sent B a letter wherein the former offered to sell his car to the latter for Php 1M. B signified his
intention that he may buy the same. In A’s letter, he gave B two weeks to raise the amount. After one
week A raised the price to Php 1.5M. Can B compel A to accept the Php 1M first offered by A and deliver
to him the car? [A]Yes, since there was already offer acceptance[B]Yes, because A cannot change his

This study source was downloaded by 100000827208097 from CourseHero.com on 06-03-2021 00:07:48 GMT -05:00

https://www.coursehero.com/file/7923268/CONTRACTS/
 offer without the consent of B.[C]Yes, because A cannot withdraw the offer within two weeks as he is
under estoppel.[D] No, because there was no acceptance yet of the offer.

2. Three of the following may object of contracts. Except:[A]Those things within the commerce of
man.[B]Services which are not contrary to law, morals, good customs. [C] Intransmissible rights
[D]Hereditary rights

3. Which of the following constitutes an offer? [A]Business advertisements of things for sale.[B]
Advertisements for bidders [C] An offer made through an agent [D]Before acceptance is conveyed,
either of the parties dies, civilly interdicted, becomes insolvent

4. Which of the following contracts is unenforceable? [A]One of the contracting parties is incapable
of giving consent. [B]Contract of lease of a car two years orally entered into.[C] Oral contract of sale of
land.[D]Mortgage contract in private instrument.

m
5. A sold in writing to B his stereo set for Php600. there is no delivery from A and no payment of the

er as
price from B. Contract is: [A]Voidable [B]Void [C] Unenforceable [D] Enforceable

co
eH w
6. S was intimidated by B to sell to the latter his parcel of land at a very low price. C, the creditor of

o.
S was thus damaged since the former has no other means of collecting from S. The remedy of S:[A]
Rescission rs e
[B] Annulment [C]Have it declared by the court as void [D]Reformation of the contract
ou urc
7. A sold to B a genuine bottle of Fundador brandy. However, upon delivery the former substituted a
o

fake, B now wants to annul the sale. Decide:[A] The contract is void ab initio therefore it can be annulled.
aC s

[B]The contract can be annulled since it is voidable due to fraud.[C] The contract cannot be annulled
vi y re

because it is only incidental fraud. [D]There is dolo incidente therefore it can be annulled.

8. In three if the following the contract is cleansed of its defect by ratification. Which is not so
ratified? [A] Contract where the creditor was damaged by the act of the debtor intended to defraud
ed d

him.[B]Contract entered into by a person incapable of giving consent.[C]Sale of chattels orally entered
ar stu

into for a price not less than five hundred pesos.[D]Lease of real property for more than one year orally
entered into.
is

9. S made an offer to B for the sale of his car which was received by the latter on January 2, 2001.
Th

On January 2, 2001 B sent a letter of acceptance by mail. On January 3, 2001 S sent another letter to B
withdrawing his offer. In this case; [A]There was a perfected sale because of the acceptance of the offer
by B before he had knowledge of its withdrawal by S.[B]There was perfected sale because before S was
estoppel from withdrawing his offer unless B had knowledge thereof before acceptance. [C] No sale took
sh

place because before acceptance was conveyed, the offer had been withdrawn.[D]The offer was
ineffective for lack of certainty as to the object.

10. A gave B One Million Pesos for the latter to kill C. Before B could accomplish his
criminal intent to kill C, A changed his mind and demanded the return of the money from B.
Decide:[A]A cannot recover the payment he made to B because it was a void contract which

This study source was downloaded by 100000827208097 from CourseHero.com on 06-03-2021 00:07:48 GMT -05:00

https://www.coursehero.com/file/7923268/CONTRACTS/
 does not allow recovery by the guilty party.[B]A cannot recover the money because the contract
is unenforceable. [C] A can recover the money although the contract is void since the crime
was not committed.[D]No recovery and both A and B will prosecuted for their crime.

Contributor: Atty. Areno, R.

Date Contributed: February 2011
1. A real contract has the following essential elements: (A) consent of the contracting parties, object certain,
and cause or consideration. (B) consent of the contracting parties, object certain, cause or consideration
and delivery of the object. (C) consent of the contracting parties, object certain, cause or consideration, and
formalities required by law. (D) consent of the contracting parties, object certain, delivery of the object, and
formalities required by law.

2. D borrowed P500,000.00 from C. D died without having paid his loan obligation to C. He left S, his son
and heir, properties worth P400,000.00. (A) S is liable to C for P500,000.00 (B) S is liable to C for

m
er as
P400,000.00. (C) S is liable to C for P100,000.00. (D) S is not liable at all because he should not be made
to shoulder the obligation of his father.

co
eH w
3. A contract where the parties contemplate a real fulfilment, hence, equivalent values are given is known as:

o.
(A) commutative contract. (B) gratuitous contract. (C) onerous contract. (D) aleatory contract.

rs e
ou urc
4. The contracting 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. This
is known as the principle of: (A) liberty of contract. (B) mutuality of contract. (C) relativity of contract.
o

(D) obligatory force of contract.

aC s

5. Which of the following contracts is valid and enforceable? (A) A contract where a party gave his consent in
vi y re

a moment of drunkenness. (B) A contract where a party gave his consent because the other party threatened
to sue him for an unpaid debt. (C) A contract where a party gave his consent because the other party
threatened to kill the first party’s spouse. (D) None of the foregoing.
ed d

6. X company published an advertisement in the newspaper which reads as follows “INVITATION TO BID:
ar stu

Construction of the company’s warehouse located at 123 Luzon Street, Sta. Quiteria, Quezon City.” The
advertisement also included the specifications of the warehouse to be constructed. Three companies
submitted their bids: ABC Company, with a bid price of P4,500,000.00; DEF Company with a bid price of
is

P4,750,000.00; and GHI Company with a price of P5,000,000.00. After considering the financial
capability, reputation and experience of the bidders, the kind and quality of materials to be used, and other
Th

factors, X Company accepted the bid of DEF Company. ABC Company, the lowest bidder, now questions
the award made by X Company to DEF Company which submitted a higher bid. (A) The award to DEF
Company is voidable because it was only the second lowest bidder. (B) ABC Company should be the
winning bidder having submitted the lowest bid. (C) The award to DEF Company is valid because X
sh

Company was not bound to accept the lowest bidder. (D) The award to DEF Company is void by reason of
X’s violation of the terms of the invitation to bid.

7. Mistake in three of the following will make a contract voidable. Which one will not? (A) Mistake as to the
substance of the thing which is the object of the contract. (B) Mistake as to the principal conditions which
principally moved one of the parties to enter into the contract. (C) Mistake as to the identity or

This study source was downloaded by 100000827208097 from CourseHero.com on 06-03-2021 00:07:48 GMT -05:00

https://www.coursehero.com/file/7923268/CONTRACTS/
 qualifications of one of the parties, which identity or qualifications has been the principal cause of the
contract. (D) Simple mistake of account.

8. S and B entered into a contract where they made it appear that S was mortgaging his lot and building to B
to secure a contract of loan. The truth, however, was that S was selling his lot and building to B. Which of
the following statement is true? (A) The parties are bound by the contract of sale. (B) The parties are
bound by the contract of loan and mortgage. (C) The parties are not bound at all. (D) The parties are bound
by the contract of sale only when third persons are affected.

9. One of the following is not a requisite of the object of a contract. (A) It must be in within the commerce of
men. (B) If it is a right, it must be intransmissible. (C) It must not be contrary to law, morals, good
customs, public order, or public policy. (D) It must be determinate as to its kind or capable of being made
determinate without the need of the parties entering into a new agreement.

10. The following are the requisites of a rescissible payment, except: (A) the debt is already due. (B) the
debtor is insolvent. (C) the debtor pays the debt. (D) the payment is not yet due.

m
er as
11. The following contracts are rescissible, except: (A) Those entered into by guardians whenever the wards

co
whom they represent suffer lesion by more than one-fourth of the value of the things which are the object

eH w
of the contract. (B) Those entered into in representation of absentees, if the latter suffer lesion by more than
one-fourth of the value of the things which are the object of the contract. (C) Those undertaken in fraud of

o.
creditors but the latter can still collect the claims due them through other means. (D) Those which refer to
rs e
things under litigation if they have been entered into by the defendant without the knowledge and approval
ou urc
of the litigants or of competent judicial authority.

12. 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
o

the same in a bank robbery. What is the status of the sale? (A) The sale is void because the motive of B is
aC s

illegal. (B) The sale is valid because the illegality of the motive does not have any effect on its validity. (C)
vi y re

The sale is voidable because of the failure of B to disclose his motive to S. (D) The sale is rescissible at the
instance of S because he would be incurring damages by the illegal motive of B.

13. One of the following contracts is not vitiated by intimidation or violence, and hence valid. (A) A contract of
ed d

sale which was signed by a party because his arm was being twisted by a third person. (B) A contract of
ar stu

sale which was entered into because the other party was pointing a gun at his wife. (C) A contract where a
party was compelled to assign his property to the other to pay a just debt because the latter threatened to
sue him in court if he does not pay his debt. (D) A contract of donation of a parcel of land which a party
signed because the other party threatened to burn his house.
is

14. Which of the following contracts is valid and enforceable? (A) A contract where a party gave his consent in
Th

a moment of drunkenness. (B) A contract where a party gave his consent because the other party threatened
to sue him for an unpaid debt. (C) A contract where a party gave his consent because the other party
threatened to kill the first party’s spouse. (D) None of the foregoing.
sh

15. On June 1, 2002, S offered to sellhis only car to B for P100,000.00. B accepted the offer by mailing his
letter of acceptance3 on June 10, 2002. On June 12, 2002, B revoked his letter of acceptance and mailed
his letter of revocation on the same date. S received the letter of acceptance on June 14, 2002 and the letter
of revocation on June 15, 2002. (A) The contract was perfected on June 14, 2002 when S received B’s letter
of acceptance. (B) The contract was not perfected because at the time the acceptance was received, the

This study source was downloaded by 100000827208097 from CourseHero.com on 06-03-2021 00:07:48 GMT -05:00

https://www.coursehero.com/file/7923268/CONTRACTS/
 parties were no longer of one mind. (C) The contract was perfected on June 10, 2002 when B sent his letter
of acceptance. (D) The perfection of the contract retroacts to June 1, 2002 when the offer was made.

m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000827208097 from CourseHero.com on 06-03-2021 00:07:48 GMT -05:00

https://www.coursehero.com/file/7923268/CONTRACTS/
Powered by TCPDF (www.tcpdf.org)