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Additional Homework – Contract – Part 1

1. These persons are bound by contracts. (Phil CPA, 85-2; 88-2)

a. Contracting parties c. Assigns
b. Heirs d. All of them

2. Requisites of a valid object or subject matter: (Phil CPA, 85-2)

a. Must be determinate or definite as to its kind
b. Must be possible
c. Both a and b
d. None of them

3. Requisites of a valid cause: (Phil CPA, 85-2)

a. It must be lawful c. It must be real
b. It must be true d. All of them

4. Essential requisites of a contract: (Phil CPA, 86-2)

a. Consent c. Subject
b. Cause d. All of these

5. When there is concurrence of the offer and acceptance, there is: (Phil CPA, 86-2)
a. Payment c. Acceptance
b. Consent d. Revocation

6. 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? (Phil CPA, 87-1)
a. Where there is a stipulation in favor of a third party
b. Where one of the parties to the contract dies and thereafter a suit is filed on the basis of the
contract.
c. Where the obligations arising from contract are not transmissible by their nature.
d. Where the obligations arising from contract are not transmissible by stipulation or by
provision of law.

7. A wrote a letter to B wherein A offered to sell a piece of land to B for P200,000. B signified his
desire to buy the land. In A’s letter, B was given a period of two (2) months within which to
produce the P200,000. After 45 days, A told B that price of the land is now P250,000. Can be
compel A to accept the P200,000 first offered by A and execute the deed of sale? (Phil CPA, 88-
1)
a. Yes, because there was actual meeting of the minds of the parties.
b. No, for B did not signify his acceptance of A’s offer.
c. Yes, because A is already estopped by his signed letter.
d. Yes, because the period of two (2) months has not expired.

8. Mr. Santos offered to sell his land to Mr. Calma for P100,000. Mr. Calma accepted the offer and
paid Mr. Santos P100,000and Mr. Santos delivered the owner’s duplicate of the Transfer
Certificate of Title of the land. Mr. Calma wishes to register the land in his name but the Register
of Deeds asked Mr. Calma for the Deed of Sale. What can Mr. Calma do? (Phil CPA, 88-2)
a. Mr. Calma cannot compel Mr. Santos to return the payment because the contract is not
enforceable.
b. Mr. Calma may sue Mr. Santos to return the price under the legal maxim “No one may enrich
himself at the expense of another.”
c. Mr. Calma may compel Mr. Santos to execute the Deed of Sale because the contract is valid.
d. Mr. Calma may occupy and use the land as a buyer in good faith.

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9. Mr. Reyes and Mr. Vitug are good friends. Mr. Reyes sold and delivered his car to Mr. Vitug. It
was agreed and understood that on Sunday Mr. Reyes will name and fix the price of the car.
Sunday came. Mr. Reyes called Mr. Vitug by telephone and stated and fixed the price at
P150,000. Is the sale perfected? (Phil CPA, 89-1)
a. Yes. The price was stated and fixed on the date agreed upon.
b. No. The price was left to the discretion of the seller.
c. No. At the time of the sale, the price is not fixed.
d. No. The price fixed by the seller was not accepted by the buyer.

10. Mr. Guzman sold his owner type jeep to Mr. Montano for P100,000. There was no date fixed for
the performance of the obligation of Mr. Guzman and Mr. Montano. The obligation of Mr.
Guzman is: (Phil CPA, 89-1)
a. To deliver the jeep immediately as there is a perfected contract.
b. To wait for Mr. Montano to pay P100,000 and deliver the jeep.
c. To rescind the contract because no time or date is fixed for the performance of the respective
obligations.
d. To deliver the jeep after Mr. Montano demands for the delivery of the jeep.

11. Mr. Gamboa sold his car for P200,000 to Mr. Ramos. There was no fixed date for the
performance of the obligations of both parties. The obligation of Mr. Gamboa as vendor is: (Phil
CPA, 97-2)
a. To wait for Mr. Ramos to pay P200,000 and deliver the car.
b. To deliver the car immediately as this is a perfected contract.
c. To deliver the car after Mr. Ramos demands for its delivery.
d. To rescind the contract because no time or date is fixed for the performance of their
respective obligations.

12. Three (3) of the following may be valid objects of a contract, except: (Phil CPA, 89-2)
a. All that are within the commerce of man.
b. All services which are not contrary to law.
c. Impossible things or services
d. All rights that are transmissible.

13. Three of the following are option money. Which is the earnest money? (Phil CPA, 89-2)
a. Given when contract of sale is perfected.
b. Given when there is no contract of sale
c. Given to bind the offer or in a unilateral promise to sell or buy.
d. Given as a separate consideration from purchase price.

14. These are the basic principles or characteristics of a contract. Which is the exception? (Phil CPA,
90-1)
a. Freedom or liberty to stipulate
b. Obligatory force and compliance in good faith.
c. Binding on third parties.
d. Perfection by mere consent.

15. The following is considered fraud or fraudulent: (Phil CPA, 90-1)

a. Failure to disclose facts when there is duty to reveal them.
b. The usual exaggeration in trade, when the other party had the opportunity to know the facts.
c. Misrepresentation made not in bad faith.
d. “Caveat Emptor” or let the buyer beware.

16. The stipulation in a contract to the effect that the debtor should remain as a servant in the house
and in the service of her creditors so long as she had not paid her debt, is void because it is: (Phil
CPA, 91-1)
a. Contrary to good customs
b. Contrary to public policy
c. Contrary to law and morality
d. Answer not given.

17. 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: (Phil
CPA, 91-1)

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 a. An offer made through an agent
b. Business advertisement of things for sale.
c. Advertisement for bidders.
d. Answer not given

18. When one of the parties to a contract is compelled to give his consent by a reasonable and well
grounded fear of an imminent and grave evil upon his person or property, or upon the person or
property of his spouse, descendants or ascendants, there is: (Phil CPA, 91-1)
a. Violence c. Undue influence
b. Intimidation d. Answer not given

19. Simulation of a contract may be absolute or relative. It is relative when: (Phil CPA, 91-1; 96-1)
a. The parties do not intend to be bound at all.
b. The contract is void.
c. The parties conceal their true agreement.
d. Answer not given

20. The proper remedy is annulment of contract and not reformation when: (Phil CPA, 91-1)
a. Mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the
parties.
b. A mutual mistake of the parties causes the failure of the instrument to disclose their real
agreement.
c. One party was mistaken and the other knew or believed that the instrument did not state their
agreement, but concealed the fact from the former.
d. Answer not given.

21. The action to annul a voidable contract, such as a contract where one of the parties is incapable of
giving consent to the contract is extinguished by: (Phil CPA, 91-1)
a. Novation c. Ratification
b. Rescission d. Answer not given

22. A contract is in the stage of conception when: (Phil CPA, 92-1)

a. There is meeting of the minds.
b. Negotiations are in progress.
c. The parties come to the agreement.
d. The contract is perfected.

23. Three (3) of the following contracts are void. Which is not? (Phil CPA, 92-2)
a. Contract in writing contemplating and asking for impossible service
b. Oral authority given to an agent in sale of land
c. Oral partnership agreement where immovable property is contributed
d. Oral partnership agreement when capital is more than P3,000.00

24. It takes place when the parties do not intend to be bound at all by their agreement: (Phil CPA, 93-
1; 96-1; 97-1)
a. Apparent contract
b. Absolutely simulated contract
c. Relatively simulated contract
d. Deed of assignment.

25. In order that fraud may make a contract voidable: (Phil CPA, 94-2)
a. It may be incidental but both parties should not be in pari delicto.
b. It may be serious and the parties must be in pari delicto.
c. It may be incidental but should have been employed by both parties.
d. It should be serious and should have not have been employed by both contracting parties.

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