Manila * Cavite * Laguna * Cebu * Cagayan De Oro * Davao

Since 1977

RFBT.3202 VILLEGAS/AGUILAR
Contracts MAY 2022

QUESTIONS
1. 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
2. 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
3. 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
10. An incidental element of a contract
a. Implied warranty
b. Payment of interest in a loan
c. Delivery of the object in contract of pledge
d. All of the above
11. A threat to enforce one’s claim through competent
authority, if the claim is just or legal does not vitiate
consent.
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. Both are false
c. No.1 is true; No. 2 is false
d. No.1 is false; No. 2 is true
12. Which of the following contract is not valid?
a. Mutual promise to marry entered into orally
b. Sale of immovable property orally entered into
c. One of the parties in a contract is incapable of giving
consent
d. Sale of immovable property thru an agent

4. An agreement in restraint of trade. 13. A conferment of a direct benefit in a contract between

a. Perfectly valid two persons in favor of a third person who must accept
b. Voidable such benefit before the same is withdrawn is known as:
c. Unenforceable a. Policitacion
d. Void b. Stipulation por autrui
c. Donation propter nuptias
5. Contract that is made for a valuable consideration is: d. Counter-offer
a. Onerous
b. Gratuitous 14. The offeror need not know the acceptance by the offeree
c. Onerous and Gratuitous is the theory of:
d. Aleatory a. Cognition
b. Manifestation
6. The stage of “conception” of a contract is: c. Expedition
a. When the contract is fully executed d. B or C
b. When the parties come to an agreement
c. When negotiations are in progress 15. Statement No.1: Dolo incidente entitled the person
d. When there is a meeting of the parties’ minds. against whom it was employed the right to seek the
annulment of the contract.
7. These persons are bound by contracts: Statement No.2: Innominate contracts are exclusively
a. Contracting parties regulated by the stipulations of the parties.
b. Assigns or Assign a. Both are true
c. Heirs b. Both are false
d. All of them c. No.1 is true; No. 2 is false
d. No.1 is false; No. 2 is true
8. Acceptance of an offer made by letter or telegram shall
bind the offeror: 16. Which of the following instruments is not subject to
a. From the time the offeree has knowledge of the reformation?
offer. a. Simple donations inter vivos wherein no condition
b. From the time the offeree sent his acceptance. imposed
c. From the time the acceptance is communicated. b. Wills
d. From the time the offeror made the offer. c. When the real agreement is void
d. All of the above
9. Essential requisites of a contract:
a. Consent 17. The following contracts should observe the Statute of
b. Cause Frauds, except:
c. Subject a. Guaranty
d. All of them b. Lease of personal property longer than one year
c. Representation as to the credit of a third person
d. Lease of personal property for one year

Page 1 of 3 www.teamprtc.com.ph RFBT.3202

EXCEL PROFESSIONAL SERVICES, INC.

18. Which of the following contracts is required to be in 27. All are incorrect about contracts except one
writing to be enforceable? a. Voidable contracts are also called validable
a. An agreement that by its terms is not to be contracts
performed within a year from the making thereof. b. Stipulation pour autrui is an exception to mutuality
b. A special promise to answer for the debt, default or of contracts
miscarriage of another. c. Fraud in inducement is a ground to nullify a contract
c. An agreement made in consideration of marriage, d. Void contracts are unenforceable but not vice versa
other than a mutual promise to marry. 28. The following, except one, are the characteristics of void
d. All of the above. or inexistent contact. What is the exception?
a. They are not subject to ratification.
19. Contracts that cannot be sued upon unless ratified: b. The right to raise defense of illegality cannot be
a. Voidable waived.
b. Unenforceable c. The defense of illegality of the contract is available
c. Rescissible to third persons whose interest is not directly
d. Void affected.
20. Which of the following can be considered as feature of d. The action or defense for declaration of the nullity
the void contract? or inexistence of the contract does not prescribed.
a. Subject to ratification 29. Mistake in three of the following will not make a contract
b. They exist voidable. Which one will not?
c. Action or defense for nullity is subject to a. Mistake as to the substance of the thing which is the
prescription object of the contract.
d. It is imprescriptible as a defense b. Mistake as to the principal conditions which
21. In three of the following defective contracts, ratification principally moved one or both parties to enter into
cleanses the defects. Which is the exception? the contract.
a. Both parties are incapable of giving consent c. Mistake as to the identity or qualifications of one of
b. Sale of immovable property or interest orally the parties, which identity or qualifications have
entered into been the principal cause of the contract.
c. Sale of piece of land thru an agent the authority is d. Simple mistake of account.
oral 30. Statute of Frauds is applicable to
d. Contracts entered into by a person who has been a. Partially executed contract
given no authority b. Oral contract of loan when the amount involved is
22. Valid until annulled unless there has been ratification less than P500
a. Rescissible contract c. Contract not to be performed within a year from the
b. Inexistence contract making thereof
c. Voidable contract d. All of the above.
d. None of the above 31. When bilateral contracts are vitiated with vices of
23. Because of the intimidation employed by X, a third consent, they are rendered
person, S sold his car to B. This contract is: a. rescissible.
a. Void b. void.
b. Voidable c. unenforceable.
c. Unenforceable d. voidable
d. Rescissible 32. Lino entered into a contract to sell with Ramon,
24. B called C by the telephone to guaranty the debt of D to undertaking to convey to the latter one of the five lots
C. The contract between B and C is: he owns, without specifying which lot it was, for the
a. Unenforceable price of P1 million. Later, the parties could not agree
b. Voidable which of five lots he owned Lino undertook to sell to
c. Rescissible Ramon. What is the standing of the contract?
d. Annullable a. Unenforceable.
b. Voidable.
25. This kind of defective contract refers to that contract c. Rescissible.
which is validly agreed upon because all the essential d. Void.
elements exits, but courts can nullify it when there is
damage or prejudice to one of the parties or to a third 33. One of the following statements concerning ratification
person. Its enforcement would cause injustice by reason of a voidable contract is false. Which is it?
of some external facts. a. Ratification extinguishes the action to annual a
a. Voidable contract voidable contract.
b. Void or Inexistence Contract b. Ratification cleanses the contract from all its defects
c. Rescissible Contract from the moment it was constituted.
d. Unenforceable Contract c. Ratification requires the conformity of the party who
has no right to bring the action for annulment.
26. P, who was in Hongkong, made an overseas call to A, d. Ratification may be made by the guardian of the
his friend, to sell P’s lot in Quezon City immediately as incapacitated person, or the incapacitated person
P needed cash. Accordingly, A sold the lot to B. The deed upon attaining capacity, or the party whose consent
of sale is in a public document. The sale of P’s lot is: was vitiated.
a. Valid
b. Rescissible
c. Unenforceable
d. Void

Page 2 of 3 www.teamprtc.com.ph RFBT.3202

EXCEL PROFESSIONAL SERVICES, INC.
34. The following agreements are covered by the Statute of
Fraud. Which is not?
a. An oral agreement which by its terms is not to be
performed within one year from the making thereof.
b. An oral special promise to answer for the debt,
default or miscarriage of another.
c. An oral agreement in consideration of marriage.
d. An oral contract of partnership where the
contribution in money or personal property amounts
to P3,000 or more.
35. S owns an oil painting. Being in need of money, S sold
the painting to B for P1, 000. After the sale it was
discovered that the painting was valuable and worth P5,
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 annul the contract on the ground of error
d. B is entitled to the benefit of the contract because
it is valid and binding
36. Contract which has no effect at all and cannot be ratified
is a/an:
a. Unenforceable c. Voidable
b. Void contract d. All of them
37. S sold to B in private instrument 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.
S sold to B orally his specific land. After B paid S the
price of the sale, he wants to register the land in his
name but he needed a public instrument of sale. In here
B may compel S to execute the needed public
instrument.
a. Both examples are false c. Only 2 is true
b. Only 1 is true d. Both are true.
38. Ratification of voidable contract is necessary for its
validity.
One can ask for the annulment of a contract based on
dolo incidente.
a. Both are true c. I is true, II is false
b. Both are false d. I is false, II is true
39. 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.
40. In the preceding number, what can C do?
a. C may ask for rescission of the contract
b. C may ask for the reformation
c. C may ask S to declare the contract voided
d. C may ask for the annulment of the contract.
41. Which of the following contracts is voidable?
a. Those where both parties are 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 to 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
Page 3 of 3 www.teamprtc.com.ph
42. 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 monthly
rentals thereon, is a valid stipulation.
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 c. No.1 is true; No. 2 is false
b. Both are false d. No.1 is false; No. 2 is true
43. S and B orally agree that S would sell and B wound 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 Statue of Frauds,
therefore unenforceable.
c. No Statue of Frauds because the price is less than
P500.
d. The object is movable, oral contract is
enforceable.
44. This kind of defective contract refers to that contract
which is validly agreed upon because all the essential
elements exits, 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 reason
of some external facts.
a. Voidable contract c. Rescissible Contract
b. Void Contract d. Unenforceable Contract
45. S1 – Reformation of the instrument interprets the
contract in order to express the true intention of the
parties.
S2 – An onerous contract is interpreted in favor of
greatest reciprocity of interest.
a. Both are true
b. Both are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
46. S1 – In case of conflict between a general provision and
a special provision, the customs of the place shall
prevail.
S2 – A natural obligation is based on positive and equity
law.
a. Both are true
b. Both are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
47. S1 – Motive is an essential element of a contract.
S2 – Illegal motive makes the contract voidable.
a. Both are true
b. Both are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
48. Must be in writing to be enforceable:
a. Lease of land for 12 months c. Both of a and b
b. Lease of car for 18 months d. None of a and b
“Keep your dreams alive. Understand to achieve anything
requires faith and belief in yourself, vision, hard work,
determination, and dedication. Remember, all things are
possible for those who believe.”
End of RFBT.3202
RFBT.3202