Business Law

Essential Requisites of Contracts Quiz

Quizzes
1. In a contract containing an option period, when is the offerer not allowed to withdraw his offer
even before acceptance by the offeree? When is the offerer allowed to withdraw his offer even
after acceptance?
- An offerer is not allowed to withdraw his offer even before acceptance when a
consideration like something paid or promise has been agreed beforehand.
- An offerer is allowed to withdraw his offer even after acceptance when there is a
proper communication between the offerer and the offeree.

2. Emelyn Cruz, sold his house to Krisha Jaypee, believing that Krisha Jaypee was Karina Sy. Can
Emelyn Cruz withdraw from the contract on the ground of mistake?
- Emelyn Cruz can withdraw from the contract on the ground of mistake, because
when a contract is made for the wrong person by mistake, it is voidable.

3. Shane Castro agreed to deliver to Kristyn Lacsamana 500 cavans of rice at P 600 per cavan.
Shane Castro delivered only 490 cavans deliberately misrepresenting that the delivery consisted
of 500 cavans. Can Kristyn Lacsamana ask the court to annul the contract on the ground of
fraud?
- Kristyn Lacsamana cannot annul the contract on the ground of fraud, because the
obligation was performed in good faith and the breach of the obligation was by
mistake. Kristyn cannot annul the contract, but in Shane Castro’s defense, in order
to fulfill the obligation, the 10 remaining cavans of rice must be delivered or pay the
damages.

4. Lai Austria sold to Aiz kat a commercial land for P 1,000,000. Lai Austria assured Aiz kat that I is
certain in two years’ time, the land would increase in market value by 50% or P 1,500,000. It
turned out that the market value of the land even decreased to about P 800,000. Is Lai Austria
liable to Aiz kat, for misrepresentations?
- No, Lai Austria is not liable for misinterpretations, because it was unintentional, and
Lai wanted to give an offer to Aiz kat in good faith. Therefore, there is an error but
not fraud.

5. Suppose in the same problem, what Lai Austria sold Aiz kat, hardware owner (Aiz Kat), are 500
bags of cement. Lai Austria, had every reason to believe that the price of cement would go
down. After two weeks, it did go down. Has Aiz Kat the right to have the sale annulled?
- Aiz kat has the right to have the sale annulled, because whether the failure to
disclose the information is intentional or unintentional, as long as there is duty or a
sense to reveal them, Aiz kat can rescind or annul the contract.