Professional Documents
Culture Documents
Rescissible Contracts
Rescissible Contracts
501. Is one that was entered into legally by the contracting parties but has resulted in
economic damage to one of the parties or an outside party?
a) Voidable contracts
b) Rescissible contracts
c) Unenforceable contracts
d) Void contracts
503. What is the injury suffered by one who did not receive the equivalent value of what was
bargained for?
a) Interest
b) Penalty
c) Lesion
d) Prescription
504. An example of a rescissible contract is one which is entered into by guardians whenever
the wards whom they represent suffer lesion by of the value of the things which are the
object thereof.
a) One-fourth
b) More than one-fourth
c) Less than one-fourth
d) Three fourths
507.On September 1, CY, A entered into a contract with B whereby A sells to B 5,000 sacks of
sugar tobe delivered on the 15th and to be paid in full on the 30th. There was no agreement
for rescissionbased on prepayment. A did not deliver on the 15th
but on the 30th, he was willing and offering to deliver but B did not make payment on said
date and so A did not like it and refused to make delivery. Which is incorrect?
e) A cannot rescind the contract for nonpayment of the price
f) A cannot refuse to deliver the goods
g) B is not entitled to recover damages
h) A can rescind the contract for nonpayment of the price since B is at fault.
511. A contract of sale made by d of his only lot to X in order to defraud C, his creditor. X was
not aware of the fraudulent intention of D when he sold the lot to him. A contract of sale
made by D to X of jewelry which C is trying to recover in a court case he filed agaist D was
not aware that the jewelry was the subject of litigation between C and D. which contract/s
is/are rescissible?
a) I only
b) II only
c) Both
d) Neither
a) I,II,III
b) I,II,IV
c) II,III,IV
d) I,III,IV
513. Just like voidable and unenforceable contracts, rescissible may also be ratified.
a) True
b) False
514. Both annulmemt and rescission are available not only to the contracting parties but
also to third persons whose interests are affected?
a) True
b) False
516. When the thing deteriorates with the debtor’s fault, the creditor may choose one of the
following:
a) Mutual restitution
b) Rescission of the obligation with indemnity for damages
c) Suffer the deterioration of the thing
d) Institute an action for negligence
519. A valid contract must contain at least four of the six elements of a contract.
a. True
b. False
520. A(n) ________________ occurs when one party to a contract does not do what he or
she agreed to do.
a. Breach
b. Fraud
c. Consideration
d. Ratification
522. People sometimes enter into _________________ contracts without saying a word.
a. Voidable
b. Express
c. Unenforceable
d. Implied
525. When a bilateral mistake is made, neither party may avoid the contract.
a. True
b. False
531. A minor would be held responsible for the fair value of which of the following?
a. Athletic shoes
b. CDs
c. Medical care
d. Video games
533. A promise to do something that is already under a legal obligation to do that same thing
is not consideration.
a. True
b. False
534. A promise to give money in exchange for something that has already been done is
binding.
a. True
b. False
536. For consideration to be present in a contract, the two parties must pay the market
value of the goods. For example, if one party is selling a car to another party, the car must be
priced as it would at a dealership. a. True
c. False
537. A court’s award that reimburses a buyer for reasonable expenses when the seller has
breached a contract is __________________ damages.
a. Incidental
b. Actual
c. Real
d. Illusory
538. . If both parties to an illegal agreement are equally at fault, the court will aid both
parties equally.
a. True
b. False
542. Competitors who sell a particular product or service at an agreed price are engaged in
a. price-fixing
b. Restraint of trade
c. Usury
d. a restrictive covenant
544. The destruction of the subject matter of a contract discharges that contract.
a. True
b. False
545. The destruction of the subject matter of a contract discharges that contract.
a. True
b. False
546. As long as all terms have been carried out properly and completely, the contract is
discharged by _______________. (This is the most common way contracts are discharged.)
a. Agreement
b. Avoidance
c. Performance
d. Exaction
547. Damages agreed upon by the parties when they first enter into a contract are called
a. Actual damages
b. Incidental damages
c. Anticipatory damages
d. Liquidated damages
551. A contract in which, under the terms of a contract, nothing remains to be done by
either party is known as
a) executed contract.
b) executory contract.
c) unilateral contract.
d) none of the above.
556. An offer and its acceptance is the basic requirement of an agreement and as per this
requirement an offer by one party
a) should be made to the other who is related to him.
b) may also be made to himself.
c) should be made to another who may or may not be related to him.
d) should be made to another before the Registrar.
557. All illegal agreements are void; but all void agreements are not illegal.
a) True
b) Partly true
c) False
d) None of the above
558. Where a particular type of contract is required by law to be in writing and registered, it
must comply with the necessary formalities as to writing, registration and attestation.
Otherwise, such a contract is
a) void contract.
b) illegal agreement.
c) valid contract.
d) unenforceable contract.
559. Where the obligation in a contract is outstanding on the part of both parties, it is called
a) void contract.
b) illegal agreement.
c) unilateral contract.
d) bilateral contract.
560. An agreement is
a) enforceable by law if it meets the requirements of the law of the land.
b) enforceable by law if any one party to it wants.
c) enforceable against the law.
d) enforceable by law if it is made by competent parties.
561. …………….. is a one-sided contract in which only one party has to perform his promise or
obligation?
a) Void contract
b) Illegal agreement
c) Unilateral contract
d) Bilateral contract
562. S offers to sell his CAR to B for P100,000. B asks him if he would accept P80, 000. Which
of the following is correct?
a. Because of ambiguity, both offers are terminated by operation of law.
b. B’s response is a counter-offer effectively terminating the P100, 000 offer and instigating
an offer for P80, 000.
c. B’s response is a rejection of the P100, 000 offer, and there is no offer for P80, 000
because it is too indefinite
d. B’s response is a mere inquiry, the P100, 000 offer by S is still in force
563. By this principle, the validity and efficacy of the contract cannot be left to the will of
one of the contracting parties.
a. Relativity of contract
b. Mutuality of contract
c. Obligatoriness of contract
d. Freedom of contract
564. This principle means that contracts take effect only upon the contracting parties, their
assigns or successors-in-interest
a) Relativity of contract
b) Mutuality of contract
c) Obligatoriness of contract
d) Freedom of contract
565. B forced S to sell him (B) a masterpiece painting for P1M.Subsequently, B sold it to X for
P 2M, a good faith purchaser. S is entitled to
a. Rescind the contract with B plus damages
b. Recover the painting from X but no damages
c. Recover damages from B
d. Annul the contract plus damages
567. The following contracts should observe the Statute of Frauds, except:
a. Guaranty
b. Lease of personal property longer than one year
c. Representation as to the credit of a third person
d. Lease of real property longer than one year
568. An “invitation to bid”, B proposes the following: “I will buy the property for P10, 000 if
the bid of any other offerrors or bidders shall be considered the best terms of amount and
conditions, I am to equal that offer”.
a. The offer is speculative, because it cannot be considered as against another offer which is
certain
b. The offer is considered a counter offer
c. This is a continuing offer which is very certain C The advertiser is not bound to accept the
higher bidder
570. On July 15, 2014, X entered into a contract with Y. On February 10, 2015, X discovered
that fraud was committed at the time he entered. Remedy of X is to annul when?
a. Within three years from the time of the fraud
b. Within four years from February 10, 2015
c. Within four years from the time A entered into the contract
d. On February 10, 2015
571. 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 a
definite offer?
a. An offer made through an agent
b. Business advertisement of things for sale
c. Advertisement for bidders
d. All of the above
572. Example No. 1: The husband, by intimidation, was able to obtain the consent of his
wife, with regards to the sale of a piece of land to him belonging to the wife for P1 million.
The contract is voidable because there was intimidation. Example No. 2: In the above
example, the right of the wife is to go to court and file a motion for annulment within four
(4) years from the time intimidation ceased.
a. Both are true
b. No. 1 is true; No. 2 is false
c. Both are false
d. No. 1 is false; No. 2 is true
576. S makes an offer to B on January 1, 2014. B makes known his acceptance in a letter sent
on January 2, and received by S on January 10. Meantime, on January 5, S becomes insane.
a. The contract is voidable because one party is insane
b. There is already a meeting of minds, the contract is perfected
c. The contract is not binding because there is no meeting of minds
d. Contract is unenforceable.
577. In the preceding number S is perfectly sane but only an unemancipated minor of the
time the acceptance is communicated to him.
a. There is no meeting of minds between the parties, unless ratified by the guardian of S.
b. The contract is not binding because the party is incapacitated
c. The contract is binding between the parties (but voidable)
d. Contract is valid.
578. In a contract, as written, D promises to pay C P10, 000 on September 15, 2014. The
consideration received by D is not stated in the contract. Decide.
a. The contract is valid because the cause is always presumed to exist.
b. The contract is valid so long as it in writing
c. The contract is valid because cause is not essential to a contract
d. The contract is void because the cause is not stated.
583. Who is liable for the loss of subject matter by fortuitous event?
a. Creditor
b. Both creditor and debtor
c. Debtor
d. None of them
585. L entered into a contract of lease with X. T, the clerk of L, typed the document. Due to
T’s negligence, the document made was that of sale instead of lease.
a. The remedy is annulment
b. Parties may go to court for interpretation
c. Parties may enforce their right because it is enforceable
d. Remedy is reformation
586. Which of the following can be considered as feature of the void contract?
a. Subject to ratification
b. They exist
c. Action or defense for nullity is subject to prescription
d. It is imprescriptible as a defense
587. Statement No.1: The interpretation of obscure words or stipulation in a contract shall
not favor the party who caused the obscurity.
Statement No. 2: Gross inadequacy of the price does not affect the validity of contracts
unless it can be shown that there was fraud, force or violence, error or mistake, undue
influence, or threat or intimidation attending the execution thereof.
a. Both are true
b. No.1 is true; No. 2 is false
c. Both are false
d. No.1 is false; No. 2 is true
588. S entered into a contract with B by threatening B that if B does not agree to make the
contract, S would publish defamatory matter concerning B’s wife.
a. The contract is valid because the defamatory matter to be published does not relate to B,
the contracting party.
b. The contract is voidable because such publication when carried out whether true or not
will cause serious harm to B and his wife
c. The contract is unenforceable but B is entitled to damages the moment the publication is
made.
d. Contract is void
589. Statement No.1: If the cause is not stated in the contract it is presumed that it is
unlawful.
Statement No. 2: The action for rescission is subsidiary; it cannot be instituted except when
there is no other legal means to obtain reparation for damages suffered.
a. Both are true
b. No.1 is true; No. 2 is false
c. Both are false
d. No.1 is false; No. 2 is true
590. Because of the intimidation employed by X, a third person, S sold his car to B. This
contract is:
a. Void
b. Unenforceable
c. Voidable
d. Rescissible
591. B called C by the telephone to guaranty the debt of D to C. The contract between B and
C is:
a. Unenforceable
b. Rescissible
c. Voidable
d. Annullable
592. An obligation which cannot be enforced by court action, but which is binding on the
party who makes it in conscience and according to natural justice is called
a. Civil obligation
b. Pure obligation
c. Natural obligation
d. Simple obligation
593. Contract which has no effect at all and cannot be ratified is a/an:
a. Unenforceable
b. Voidable
c. Void contract
d. All of them
596. Statement No. 1: A threat to enforce one’s claim through competent authority, if the
claim is just or legal does not vitiate consent.
Statement No.2: Contracts entered into during a lucid interval are valid. Contracts agreed
into a state of drunkenness or during a hypnotic spell are binding.
a. Both are true
b. No.1 is true; No. 2 is false
c. Both are false
d. No.1 is false; No. 2 is true
597. In three of the following defective contracts, ratification cleanses the defects. Which is
the exception?
a. Both parties are incapable of giving consent
b. Sale of immovable property or interest orally entered into
c. Sale of piece of land thru an agent the authority is oral
d. Contracts entered into by a person who has been given no authority
599. In a contract of sale executed by S and B, it appears S sold his motor vehicle to B and B
bought it for P10, 000. It turned out however, S has three motor vehicles. Gallant valued
P80, 000: Hi-Ace van valued P70, 000; and a Jeep valued P60, 000. Which of the following is
correct as remedy?
a. The contract shall be reformed because there was mistake
b. The parties can ask for interpretation because the word Motor vehicle is ambiguous.
c. The parties can ask for annulment of the contract
d. There is no contract.
600. S was forced by X to sign a contract with B for the sale of specific property for P10, 000.
C a creditor of X is prejudiced by the contract. What can S do?
a. S may ask for annulment of the contract
b. S may ask for rescission of the contract
c. S may ask C to declare the contract avoided
d. C may ask for the annulment of the contract.