Multiple Choice on Contracts

1. Which of the following can be considered as a feature of a void contract?

a. Subject to ratification
b. They exist
c. Action or defense for nullity is subject to prescription
d. None of them.
2. 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. None of the above.
3. The persons are bound by contracts
a. Contracting parties.
b. Assigns or assign
c. Heirs
d. All of them
4. Who is liable for the loss of the subject matter by fortuitous event?
a. Creditor
b. Debtor
c. Both creditor and debtor
d. None of them
5. S offers to sell his house to B for 100,000. B asks him if he would accept 80,000. 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 10,000 offer and instigating an
offer of 80,000.
c. B’s response is a rejection of the 100,000 offer and there is no offer for 80,000 because it is
too indefinite to be an offer.
d. B’s response is a more inquiry; the 100,000 offer by S is still in force.
6. Example no. 1: G, guardian of W, sold W’s house valued at 50,000 for 37,500 or a lesion of one
fourth of the value.
Example No. 2: S sold his house valued at 50,000 for only 10,000 because S did not know the
true value of the house.
a. Both contracts are rescissible
b. Only no. 1 is rescissible
c. No. 2 is voidable because there is an error or mistake
d. Both contracts are valid and enforceable.
7. B1 company bought out a competitor, B2 Corporation, with a stipulation that B2 Corporation
should not thereafter engage in any business in the Philippines unless consented to and
approved by B1 company.
a. The stipulation is defective but subject to stipulation.
b. The stipulation is valid because the parties are free to enter into any stipulation, terms and
conditions such as this one.
c. The stipulation is unenforceable as there was no showing that the sale was done in writing.
d. The stipulation is void because it is contrary to public policy.

8. Which of the following contracts is not valid

a. Mutual promise to marry entered into orally
b. Sale of immovable property orally entered into.
c. One f the parties in a contract is incapable of giving consent
d. Contract remains to be valid.

9. D force C to lend him 10,000. The promissory note is in writing.

a. The contract is rescissible because the contract is fraudulent
b. The contract is void.
c. C cannot demand payment from D because the contract is unenforceable.
d. Contract remains to be valid.
10. Example No. 1 S sold to B in private instruments his land. Later, B wanted to have the sale
registered, but registration requires a public instrument. In here, B may compel S to execute the
needed public instrument.
Example no.2 S sold to B orally his specific land. After B paid S the price of the sale, he want to
register the land to his name but he needed a public instrument of sale. In here B may compel S
to needed public instrument.
a. Both examples are false
b. Only 1 is true
c. Only 2 is true
d. Both examples are true
11. In a contract of sale executed by S and B, it appears S sold his motor vehicle to B and B bought it
for 10,000. It turned out however, S has three motor vehicles. Gallant valued 80,000: Hi-ace
van valued 60,000. Which of the following is correct?
a. The contract shall be reformed because there was mistake
b. The parties can ask for interpretation because the word motor vehicles is ambiguous
c. The parties can ask for annulment of the contract.
d. There is no contract.
12. An agreement is restraint of trade.
a. Perfectly Valid
b. Voidable
c. Unenforceable
d. Void
13. Three of the following are rescissible, which is not?
a. Sale of property under litigation made by defendant without the knowledge of plaintiff and
authority of the court.
b. Those made to defraud creditors when the creditor has no other means to resolve his claim.
c. Those agreed upon in representation of absentees, if absentee suffers lesion by more than ¼
of the value of the property subject of the contract.
d. None of the above.

14. S and M agreed in print that, debtor for 3,000 will work as a servant of M without pay until she
could find money with which to pay him debt. Meantime, S absconded her obligation and failed
to comply with her promise. Under this premise, which of the following statements is correct/

a. The agreement to work as a servant is void because it is immoral.

b. The act as a servant without a pay is unconstitutional because this is equivalent to involuntary
servitude.
c. The obligation to pay is enforceable because this is in accordance with law.
d. All of the above.

15. Which of the following contracts is not required to appear in a public document?
a. Acts and contracts which have for their object the creation, transmission, modification or
extinguishment of real rights over immovable property, sales of real property or of an
interest.
b. The cession, repudiation or renunciation of hereditary rights.
c. Sale of immovable property
d. None of the above.

16. In order that a stipulation in favor of a third person in a contract would be valid and binding
upon the parties thereto, three of the requisites are mentioned in the following enumeration.
Which among them is now a requisite?
a. There must be a stipulation in favor of a third person.
b. The contracting parties must have clearly and deliberately conferred a favor upon a third
person.
c. The third person communicated his acceptance to the obligor before its revocation.
d. That there must be an existing agency between either of the contracting parties and the third
person.
17. Statement No. 1: Dolo incidente entitles the person against whom it was employed the right to
seek the annulment of the contract.
Statement No. 2: A stipulation pour autrui is an exception o the rule on relativity of contracts.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false
d. Statement No. 1 is false while statement No. 2 is true.

18. Example No. 1: W, 16 year old, sold his house valued at 1M for 50,000 or a lesion by more than
one-fourth of the value of the said house.
 Example No. 2: S sold his house valued at 1M for only 400,000 because S did not know the true
value thereof.
a. Both examples are enforceable
b. No. 1 is rescissible; while No. 2 is unenforceable.
c. No. 2 is unenforceable
d. Both contracts are binding.

19. S owns an oil painting. Being in need of money, S sold the painting to B for 1,000. After the sale it
was discovered that the painting was valuable and worth 5,000.
a. S may rescind the contract on ground of lesion or inadequacy of cause.
b. S may rescind the contract on ground of fraud
c. S may rescind the contract on the ground of error.
d. B is entitled to the benefit of the contract because it is valid and binding.

20. “A”, bachelor lawyer, raped W twice. Upon learning this, “F” the father of W, was able to force
to marry W under pain of being sued in court and dibarred from the practice of his law
profession. Which statement is correct?

a. the marriage may be annulled on the ground of force or violence

b. the marriage may be annulled on the ground of threat of intimidation.
c. the defective marriage my, however, be ratified
d. there was no defect, the marriage was perfectly valid.

21. 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. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No 2 is true

22. In an “invitation to bid”, B proposes the following:

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
d. The advertiser is not bound to accept the highest bidder

23. In the preceding question, which of the following statements is correct?

a. if there is no more offer made, the contract is perfected on the offer of B because he will be
considered as the highest bidder
b. However, if another bidder, X, bidder P15, 000, he will be considered as the highest bidder
and the contract is perfected.
c. In letter (b), if X increase his bid for P20,000, and no more bid equals his bid, the contract is
perfected for P20,000
d. Answer not given.
24. Reluctantly and against her good sense and judgment, Rosemarie entered into a contract for the
delivery of 5 tables to Corazon for a price of P15, 000. Contract is:

a. Void
b. Voidable
c. Unenforceable
d. Valid

25. G was appointed guardian of S, the latter being 16 years old. S sold his parcel of land in writing to
B valued P100, 000 for P75, 000, suffering lesion by ¼ of the value. What is the status of the
contract?

a. Rescissible
b. Unenforceable
c. Enforceable
d. Voidable

26. One of the stipulations contained in the contract between M Company and its employees is that
the company shall pay a bonus to employees of the company who shall continue its employment for
at least 2 consecutive years, unless he quits or is discharge before the expiration of the period of 2
years. X, an employee of the company was discharged without just cause, one week before the
completion of the two-year period.

a. X is not entitled to the bonus because his discharged was in accordance with the contract.
b. X is not entitled to the bonus, because the employer’s right to terminate is superior than the
right of the employee to be employed
c. X s entitled to the bonus whether the discharge is with or without cause.
d. X is entitled to the bonus because the debtor company has voluntarily prevented the
happening of the condition.

27. Statement No. 1: If one party was mistaken and the other acted fraudulently or inequitably in
such a way that the instrument does not show their true intention, the former may ask for the
annulment of the instrument.
Statement No. 2: The statement of a false cause in contracts shall render them void, if it should
not be proven that they were founded upon another caused which is true and unlawful.

a. Both are true.

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

28. Must be in writing to be enforceable:

a. Lease of land for 12 months

b. Lease of car for 18 months
c. Both of a and b
d. None of a and b

29. Which of the following is not a requisite for the validity of a contract?

a. Consent
 b. Object
c. Cause or consideration
d. Delivery of the thing
e. None of the above

30. D owes C P500. However, C’s right has already prescribed. Notwithstanding the knowledge of
this fact, D paid the amount. Realizing this mistake,D wants to recover the amount he paid.

a. D can be made to recover on the ground of mistake

b. D can be made to recover on the ground that his obligation is not legally enforceable.
c. D can be made to recover because this will enrich C at the expense of D.
d. D cannot recover.

31. Three of the following contracts are void. Which is the exception?

a. That whose cause, object or purpose is contrary to law, morals, good customs, public order
or public policy.
b. Those which are absolutely simulated or fictitious
c. Those which cause or object did not exist at the time of the transaction.
d. Those where both parties are incapable of giving consent to a contract.

32. X, a former government employee, suffered from severe paranoia and was confined in the
mental hospital in 2006. After his release he was placed under the guardianship of his wife to enable
him to get his retirement pay. In 2009 he became a mining prospector and sold some mining claims.
In 2012, he sues to annul the sale claiming that he was not mentally capacitated at the time of sale.
The sale in question was

a. Illegal
b. Void
c. Voidable
d. Valid

33. Which of the following is presumed not to be legal subrogation?

a. When a creditor pays another creditor who is preferred

b. When a third person , not interested in obligation, pays with the approval of the debtor
c. When a third person interested in the obligation, pays even without the approval of the
debtor
d. None of them

34. Essential requisites of a contract:

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

35. Which of the following instruments is not subject to reformation?

a. Simple donation inter vivos wherein no condition in imposed

b. Wills
 c. When the real agreement is void
d. All of the above.

36. Valid until annulled unless there has been ratification

a. Rescissible contract
b. Inexistence contract
c. Voidable contract
d. None of the above

37. 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

38. S makes an offer to B on January 1, 2007. 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 id already a meeting of minds, the contract is perfected
c. The contract is not binding because there is no meeting of minds
d. None of the above.

39. 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 in incapacitated
c. The contract is binding between the parties.

40. Which of the following contracts is voidable?

a. Those whose object is outside the commerce of men

b. Those which are absolutely fictitious
c. Those where one of the parties in incapacitated
d. Those which contemplate an impossible service.

41. 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 creditor so long as she had not paid her debt is void because
it is:

a. Contrary to good custom

b. Contrary to public policy
c. Contrary to law and morality
d. None of the above.

42. X, after the death of his father, sold his inheritance though its amount has not yet been
determined to B, for a consideration of P50, 000.
 a. The contract is valid only if the inheritance valued at least equal or more than P50,000
b. The contract is rescissible
c. The contract is valid even though nothing remains of the inheritance to be turned over to B
d. Contract is void, future inheritance cannot be the object of sale.

43. X, alleged that Y promised to give X one hectare of land. This is in consideration of Y’s
meritorious services to X. Y pleads in defense that since the promise was not in writing, it is
unenforceable under the Statue of Frauds. Decide.

a. The promise id unenforceable because it is not in writing

b. The Statue of Frauds is applied because A has rendered services
c. The Statue of Frauds is inapplicable here, because the promise to give the land is not a sale
of real property
d. The Statue of Frauds can apply to partially executed contract.

44. Statement No. 1: In voidable contracts, there is no need to ratify the same before they can be
considered valid. In unenforceable contracts, however ratification is mandatory before they
can be considered enforceable.
Statement No 2: There is undue influence if insidious words or machinations were employed by
a party on the other just to obtain the latter’s consents, without which the latter would not
have entered into the contract.

a. Both are true.

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

45. Three of the following are void contracts. Which is the exception?

a. Contracts where the causa is immoral

b. Contracts to prevent a known supporter of a political rival from voting for his candidate for a
valuable consideration
c. Contracts with valid consideration but with unlawful motives
d. Absolutely simulated contracts.

46. Statue of Frauds is applicable to

a. Partially executed contract

b. Oral contract of loan when the amount involved is less than P500
c. Contract not to be performed within a year from the making thereof
d. All of the above

47. Which of the following is correct?

a. An action to enforce judicially a natural obligation prescribes in 4 years

b. An action for annulment of contract is imprescriptible
c. An action to declare a contract void is not subject to prescription
d. An action for rescission of contract prescribes in five (5) years counted from the execution of
the contract.
48. B fraudulently induces s to sell to him (B) a masterpiece painting for 10,000. Subsequently, B
sold it to X for 12,000, 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. Rescind the contract between B and X.

49. Which of the following contracts is not rescissible?

a. Those which are entered into by guardians whenever the wards whom they represent suffer a
lesion of more than one fourth of the value of the object of the contract.
b. Those executed in representation of an absentee, if the latter suffer a lesion of more than one
fourth of the value of the object of the contract.
c. Those where one of the parties is incapable of giving consent to a contract.
d. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the
claims due to them.
e. Those which refer to things under litigation if they have been entered into by the defendant
without the knowledge and approval of the litigants or of competent judicial authority.

50. When there is concurrence of the offer and acceptance, there is:
a. Payment
b. Revocation
c. Consent
d. None of the above

51. Which of the following is voidable?

a. Those where parties are both incapable of giving consent to a contract.
b. Those undertaken in fraud of creditors when the latter cannot in any other manner collect
the claims due from them.
c. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or
fraud.
d. Those whose object is outside the commerce of men.

52. Which of the following contracts is rescissible?

a. Those where one of the parties is incapable of giving consent

b. Those where both parties are incapable of giving consent to a contract
c. Those which are entered into by guardians whenever the wards whom they represent suffer
lesion of more than ¼ of the value of the object of the contract.
d. Those which are absolutely simulated or fictitious.

53. By this principle, the validity and efficacy of the contract cannot be left to the will of the
contracting parties

a. relativity of the contract

b. obligatoriness of the contract
 c. mutuality of the contract
d. freedom of the contract

54. A contract where both parties are incapable of giving consent is:
a. rescissible
b. voidable
c. unenforceable
d. void

55. Simulation of Contract – absolute or relative. Relative when:

a. parties not bound at all
b. the contract is void
c. the parties conceal their true agreement
d. none of the above

56. This kind of defective contract refers to that contract which is validly agreed upon because all
the elements exist, but courts can nullify it when there is damage or prejudice to one of the
parties or to a third person. Its enforcement would cause injustice by some external facts.
a. Voidable contract
b. void or inexistence contract
c. rescissible contract
d. unenforceable contract

57. The stage of “conception” of a contract is:

a. when the contract is fully executed
b. when the parties come into agreement
c. when negotiations are in progress.
d. when there is a meeting of the parties’ minds

58. Which of the following statement is false?

a. remission is essentially gratuitous
b. cession is a special mode of payments
c. the liability of the guarantor is primary
d. in alternative obligations, the debtor is required to perform only one prestation.

59. D owes C P10, 000. But the debt soon prescribes. Later X, against the consent of D, pays C P10,
000.
a. X can recover from D 10,000 because the latter was enriched at the expense of X
b. X has no right
c. X cannot recover from D what he pays to C
d. Both D and C are liable to X
60. Statement No. 1: An agreement which, by its terns and conditions, is to be performed within a
year from the making thereof is enforceable even if entered into orally.
Statement No. 2: A contract for the sale of necessaries to a minor is a voidable contract.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

61. A contract whereby the offeree is given by the offeror a certain period of time within which to
buy or not to buy a certain thing for a certain price is called:
a. Option contract
b. Contract of sale
c. Contract of sell
d. Barter
62. Which of the following contract is enforceable even if not reduced in writing
a. Contract executed by one of the parties in a contract.
b. representation as to the credit of the third person
c. Lease of an immovable for a period longer than one year.
d. Agreement for the sale of an immovable property

63. S was forced by X to sign a contract with B for the sale of specific property for P10, 000. C a
creditor of S, is prejudice 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 annulment of the contract

64. In the preceding number, what can C do?

a. C may ask for the rescission of the contract
b. C may ask for reformation
c. C may ask S to declare the contract avoided
d. C may ask for the annulment of the contract

65. In a contract, as written, D promises to pay C P10, 000 on September 15, 2006. The
consideration received by D is not stated in the contract
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

66. Statement No. 1: If the contract is entered into without authority the contract is validable.
 Statement No. 2: Contracts take effect only between the parties, their assigns and heirs, except
in case where the rights and obligations arising from the contract are not transmissible by their
nature, or by stipulation or by provision of law. The heir is not liable beyond the value of the
property he received from the decedent.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

67. Statement No. 1: the legal life of a contract begins from its perfection stage. While the death of
the contract is the performance of fulfillment of the obligation.
Statement No. 2: Misrepresentation made in good faith is not fraudulent but may constitute
error and renders the contract voidable.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

68. D force C to lend him P10, 000. The promissory note is in writing.
a. Contract remains to be valid
b. The contract is rescissible because the contract is fraudulent
c. the contract is void
d. C cannot demand payment from D because the contract is unenforceable
69. S, a minor, owns a specific property valued P50, 000. B, capacitated, by means of fraud induced
S to sell his property to him (B) for P10, 000 which S did so. The contract is in writing.
a. The contract is binding from the start
b. The contract remains unenforceable because it falls under the Statute of Frauds
c. The contract is rescissible because the ward suffers lesion by more than ¼ of the value
d. The contract is void

70. Contract that is made for a valuable consideration is:

a. Onerous
b. gratuitous
c. Onerous and gratuitous
d. None of them

71. This principle means that contracts take effect only between the contracting parties, their
assigns or successors-in-interest
a. Relativity of the contract
b. Obligatoriness of the contract
c. Mutuality of the contract
d. Freedom of Contract
72. Which is the least defective contract?
a. Rescissible contract
b. Voidable contract
c. Unenforceable contract
d. Void contract

73. The duty not to recover what has voluntarily been paid although payment was no longer
required.
a. Natural obligation
b. Moral obligation
c. Civil obligation
d. None of the above

74. The following, except one, are the characteristics of void or inexistent contract. Which is the
exception
a. The defense of illegality of the contract is available to third persons whose interest are not
directly affected
b. They are not subject to ratification
c. the right to raise defense of illegality cannot be waived
d. The action or defense for their declaration of nullity or inexistence of the contract does not
prescribed

75. 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. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

76. 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 of bidders
d. All of the above
77. S sold his car to B because of the intimidation of B.
a. S can ratify he contract
b. S can ratify the sale with the conformity of B
c. B has the right to ask for annulment
d. B has only four years to ask for annulment

78. In three of the following, the transaction is void. Which is the exception?
a. Oral contract of the partnership the capital is 3,000 or more
b. Contracts in writing contemplating impossible services.
c. Authority of the agent orally made in sale of immovable property
d. Oral contract of partnership whenever immovable property is contributed

79. The guardian of an insane person sells a house and a lot belonging to the latter valued at P100,
000 to B, buyer for P74, 000 with the approval of the court. The contract is:
a. Valid
b. Rescissible
c. Voidable
d. Unenforceable
e. Void
80. Statement No. 1: A threat to enforce one’s claim is just or legal, does not vitiate consent.
Statement No. 2: contracts entered into during a lucid interval are valid. Contracts agree to in a
state of drunkenness or during a hypnotic spell are binding.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

81. D is indebted to C for P10, 000. For the purpose of defrauding C, D sold his only parcel of land to
X valued P10, 000. C had no knowledge of the intention of D.
a. The contract between D and X is binding
b. The contract is voidable because D is in bad faith
c. The right of C is to rescind the contract because the transaction is fraudulent
d. The contract between D and X is rescissible

82. Statement No. 1: Advertisements for bidders are simply invitations to make proposals, and the
advertiser is not bound to accept the highest or lowest bidder, unless the contrary appears.
Statement No. 2: Accidental elements of a contract are those agreed upon by the parties, and
cannot exist without being stipulated.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
83. B called C by telephone to guaranty the debt of D to C. the contract between B and C is:
a. Unenforceable
b. Voidable
c. Rescissible
d. None of them

84. Which of the following contracts is required to be in writing to be enforceable?

a. An agreement that by its terms is not to be performed within a year from the making thereof
b. A special promise o answer for the debt, default or miscarriage of another
c. An agreement made in consideration of marriage, other than a mutual promise to marry
d. Sale of goods, chattels or things in action at a price not less than 500.00
e. All of the above

85. Which of the following contracts is void?

a. Those which object is outside the commerce of men
b. Those which contemplate an impossible service
c. Those where the intention of the parties relative to the principal object of the contract
cannot be ascertained.
d. Those expressly prohibited or declared void by law
e. All of the above

86. Before acceptance is conveyed, an offer becomes ineffective upon the:

a. Death
b. Civil interdiction
c. Insanity
d. Insolvency of either party
e. All of the above

87. Contracts that cannot be sued upon unless ratified:

a. Voidable
b. Unenforceable
c. Rescissible
d. None of the above

88. On July 15, 2006, X entered into a contract with Y. on February 10, 2007, discovered that fraud
was committed at the time he entered into the contract, a fraud that vitiated his consent. The
action for annulment shall be bought.
a. Within three years from the time of fraud
b. Within four years from February 10, 2007
c. Within four years from the time A entered into the contract
d. On February 10, 2007
89. 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

90. Rescission of contract ca take place in this case:

a. When the tings which are the object of the contract are legally in the possession of the third
person whoa acted in good faith
b. When he who demand rescission can return whatever he may obliged to restore
c. When the party seeking resolution can perform only as to the part and rescind as to
remainder
d. When the seller cannot return the installment paid to him by the buyer

91. An incidental element of a contract

a. Implied warranty
b. Payment of interest in a loan
c. Delivery of the object in the contract of pledge
d. All of the above

92. X Company bought out a competitor, Y, with a stipulation that Y should thereafter not engage in
any business in the Philippines without the consent of X Company.
a. The stipulation is not valid because the party as a rule has no absolute freedom to stipulate
terms and conditions in a contract.
b. The stipulation is not valid because this is against public policy
c. the stipulation is valid, only it will create a monopoly in a trade
d. The stipulation if ratified is valid

93. Statement No. 1: Mutual promise to marry if orally entered into is unenforceable.
Statement No. 2: Violence or intimidation shall not annul the obligation; if it was employed by a
third person who did not tae part in the contract.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

94. D is indebted to C in the sum of P10, 000. For the purpose of avoiding the claims of C, D
donated all his properties worth the same amount to X.
a. the contract is absolutely simulated
b. the contract is rescissible
c. the contract is merely voidable
 d. the contract is void

95. S and B orally agree that S would sell and B would buy S’s radio for P400, two years from the
date of the agreement. At the end of the two-year period, S refused to deliver the radio
although B was willing to pay.
a. B can compel S to deliver because B is willing to pay the price
b. The contract falls under the Statute of Frauds, therefore unenforceable
c. No Statute of Frauds because the price is less than 500
d. The object is movable, oral contract is enforceable

96. Statement No. 1: A stipulation in a contract of lease which provides that the tenant shall have
the right to continue in possession of the leased premises so long as he pays the monthly
rentals thereon, is a valid stipulation.
Statement No. 2: The seller sold to a minor some necessaries in the amount of P600. The goods
were delivered to the minor who, in turn paid the purchase price therefore. The contract is
unenforceable.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

97. 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. Natural obligation
c. Pure obligation
d. Simple obligation

98. Contract which has no effect at all and cannot be ratified is a/an:
a. Unenforceable contract
b. Void contract
c. Voidable
d. All of them

99. Statement No. 1: Ratification of voidable contract is necessary for its validity.
Statement No. 2: One can ask for the annulment of a contract based on dolo incidente
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
100.A conferment of a direct benefit in a contract between two persons in favor of a third person
who must accept such benefit before the same is withdrawn is known as:
a. Policitacion
b. Stipulation por autrui
c. Donation proper nuptias
d. Counter-offer

101.Because of the intimidation employed by X, a third person, S sold his car to B. This contract is:
a. Void
b. Voidable
c. Unenforceable
d. Rescissible

102.S entered into a contract with B by threatening B that if B does not agree to make the contract,
S will 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 a 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

103.In order to defraud C, his creditor, D by means of force compelled B to buy His (D’s) land. B has
nor knowledge of such fact.
a. As to C, the contract is rescissible
b. As to B, the contract is voidable
c. Both a and b
d. None of a and b

104.Statement No. 1: the action for annulment on the ground of fraud shall be filed within 4 years
from the time of the perfection of contract.
Statement No. 2: If a valid contract is novated to a void contract, both contracts are considered
void.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

105. Contract with a false cause is

a. Voidable
b. Void
c. Unenforceable
d. All of the above