Contracts

a. Both are false

b. Both are true
c. No. 1 is true, No. 2 is false
d. No. 1 is false, No. 2 is true

1. Statements --- D
The contracts must bind both the contracting parties; it’s validity and termination cannot be left to the will
of one of them.
---False

Contracts may take effect not only between the parties, their assigns and heirs.
---True

2. Statements --- D
Real contracts are perfected by mere consent.
--- False

An offer becomes ineffective upon the insolvency of either party before acceptance is conveyed.
--- True

3. Statements --- D
Mistake as to the qualifications of one of the parties vitiates consent.
---False

There is fraud when, through insidious words and machinations of one of the contracting parties, the other
is induced to enter into a contract which, without them, he would not have agreed to.
---True

4. Statements --- A
A mere expression of an opinion does not signify fraud.
--- False

If fraud was employed in obtaining consent, the contract is voidable.

---False

5. Statements --- C
In contracts of pure beneficence, the cause is the liberality of the benefactor.
---True

The contract is void of the cause is not stated in the contract.

---False

6. Statements --- A
Under the consensuality of contracts principle, the contracting parties may establish such stipulations,
clauses, terms and conditions as they may deem convenient.
---False

Acceptance made by letter or telegram binds the offerer from the time the letter or telegram is sent.
--- False

7. Statements --- A
An offer made through the agent is accepted from the time from the time acceptance is communicated to
the principal.
---False

There is violence when in order to wrest consent, force is employed.

---False

8. Statements --- D
Failure to disclose facts constitutes fraud.
---False

Contracts of deposit, pledge and mutuum are not perfected until the delivery of the object of the obligation.
--- True

9. Statements --- A
In onerous contracts the object is understood to be, for each contracting party, the prestation or promise
of a thing or service by the other.
---False

The illegality of the motives of the parties in entering into a contract do not affect the validity of the
contract.
---False

10. Statements --- C

A contract may be voidable even though there may have been no damage to the contracting parties.
--- True

The action or defense for the declaration of the inexistence of a contract prescribes in 10 years.
--- False
Part II

C 1. With the intention of raising money to buy a gun which he would use in killing X, his mortal
enemy, S sold his only car for P100,000.00 cash to B who knew nothing of the intention of S in
selling the car. After the sale, S was able to buy a gun complete with all the papers required by law.
B, on the other hand, was able to register the car in his name at the LTO.

a. The sale of the car by S to B is valid provided S does not kill X.

b. The sale of the car by S to B Is void if S kills X.
c. The sale of the car by S to B is valid whether S kills X or not.
d. The sale of the car by S to B is void whether S kills X or not.

B 2. On February 1, 2018, Perfecto ordered to sell his house and lot to Reynaldo for
P1,500,000.00. Perfecto told Reynaldo that he was giving Reynaldo up to February 28, 2018 to
decide whether to buy or not the house and lot. Reynaldo accepted the option but did not give
anything to Perfecto to support the option given to him. On February 20, 2018, Perfecto found
another buyer who was ready to buy the house and lot for P2,000,000.00. Perfecto wants to ask
you whether he can still withdraw the offer made to Reynaldo. Decide.

a. Yes, Perfecto may withdraw the offer because he stands to gain an added profit of
P500,000.00 and this will be more than enough to pay any damages to Reynaldo.
b. Yes, Perfecto may withdraw the offer by just informing Reynaldo of such fact.
c. No, Perfecto may not withdraw the offer because the option was accepted by Reynaldo
although Reynaldo did not give anything in support thereof.
d. No, Perfecto may not withdraw his offer until the lapse of the period given to Reynaldo to
exercise his option.

E 3. A contract of deposit is:

a. A remuneratory contract c. lucrative contract

b. A gratuitous contract d. an onerous contract e. None of the above

D 4. The elements of a contract without which a contract would not exist are known as:

a. Accidental elements
b. Civil elements
c. Natural elements
d. Essential elements

A 5. 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:

a. Liberty of contract
b. Mutuality of contract
c. Privity of contract
d. Obligatory force of contract
 e. None of the above

E 6. One of the following is not a real contract:

a. Pledge c. Deposit e. None of the above

b. Commodatum d. Mutuum

C 7. It is the manifestation of the meeting of the offer and the acceptance upon the thing and
the cause which are to constitute the contract.

a. Consideration
b. Contract
c. Consent
d. Cause

C 8. On May 1, 2002, S offered to sell a specific car to B for P500,000.00. B sent his letter of
acceptance to S on May 8, 2002. On May 10, 2002, however, S died in a vehicular accident and his
secretary received the letter of acceptance on May 12, 2002 unaware that S had already died.

a. The contract was perfected on May 8, 2002, when B sent his letter of acceptance
b. The contract was perfected on May 12, 2002 when the secretary of S received the letter of
acceptance
c. The contract was not perfected because the offer of S became ineffective when he died.
d. The contract was perfected on May 1, 2002 because the acceptance made by B on May 8,
2002 retroacts to the date of the offer.

D 9. 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 or both parties to enter
into the contract.
c. Mistake as to the identity or qualifications of one of the parties, which identity or
qualifications have been the principal cause of the contract.
d. Simple mistake of account

C 10. This is present when one of the contracting parties is compelled by a reasonable an well-
grounded fear of an imminent and grave evil upon his person or property, or upon the person or
property of his spouse, descendants, and ascendants to give his consent:

a. Violence c. Intimidation
b. Physical Coercion d. Mistake
Contracts
Status of the contract

Void 1. Sale of a carabao in a private instrument

Rescissible 2. The guardian sold the property of his ward valued at P100K to another person for the
price of P70K with the approval of the ward.
Valid 3. A Contract of Lease where the rental is P1.00 annually
Unenforceable 4. Oral sale of a ball pen for P1,500.00 where it was agreed that the ball pen will be delivered
after 15 months and payment will be upon delivery.
Valid 5. Lease involving a car for 3 years at P1,000.00 a day.
Void 6. The signature of one of the parties was forged.
Void 7. One of the parties to the contract is without juridical capacity.
Rescissible 8. Those undertaken in fraud of creditors when the later cannot in any other manner collect
the claims due them.
Valid 9. One of the parties is 19 years of age.
Valid 10. One of the parties to the contract while insane entered into the contract during his lucid
interval.
Unenforceable 11. A contract between 2 minors.
Valid 12. Those which refer to things under litigation if they have been entered into by the
defendant with the approval of the competent juridical authority.
Voidable 13. When the consent of one of the parties was vitiated.
Unenforceable 14. Consent was given by one in representation of anther but without authority.
Rescissible 15. Those undertaken in fraud of creditors when the latter cannot in any other manner collect
the claims due them.
Valid 16. The seller of a private agricultural land is a former Filipino citizen.
Unenforceable 17. Oral guaranty.
Valid 18. Contract where the consideration is Chinese Yuan.
Unenforceable 19. Oral sale of a parcel of land for P350.00.
Voidable 20. Consent was given because of intimidation.