1.

A meeting of minds between two persons whereby one binds himself with respect to the other
to give something or to render some service is known as
- Contract
2. The stage of the contract according to the order of their occurrence are:
- Conception - negotiation
- Birth – both parties agreed
- Consummation – fulfillment
3. A consensual contract has the following essential
- Consent of the contracting parties
- Object certain
- Cause or consideration
4. A contract that can stand by itself
- Principal contract
5. A contract that does not have any special name
- Innominate contract
6. A contract where both parties are required to do or give something is known as:
- Bilateral contract
7. A contract where the parties contemplate a real fulfillment, hence equivalent values are given
- Aleatory contract
8. The contracting parties may establish such stipulations, clauses, terms, and conditions as they
may deem convenient provided, they are not contrary to law, morals, good customs, public
order, or public policy. This principle is known as:
- Liberty of contract
9. The contract must bind both contracting parties; its validity or compliance cannot be left to
the will of one of them. This principle is known as:
- Mutuality of contract
10. Contract takes effect only between the contracting parties, their assigns, and heirs, except in
cases where obligations and rights arise from the contract that is not transmissible by their
nature, or by stipulation or provision of law. This principle is known as
- Relativity of contract
11. A contract may be enforced by or against a third person EXCEPT when
- When the benefit of the third person is merely incidental
12. Perfected by mere consent
- Consensuality of the contract
13. Obligations arising from contracts have the force of law between the contracting parties and
should be complied with in good faith
- Obligatory force of contract and compliance of good faith
14. It is the manifestation of the meeting of the offer and the acceptance upon the thing and the
cause which are to constitute the contract
- Consent
15. Incapable of giving consent
- Deaf mutes who do not know how to write
- Insane persons
- Unemancipated minors
16. A contract entered by an incapacitated person is:
- Voidable
17. Contracts entered into in stated of drunkenness or during hypnotic spell
 - Voidable
18. A contract entered into by an insane person during lucid interval is:
- Valid
19. Vices of consent
- Fraud – through insidious words or machination of one of the contracting parties
- Undue influence – a person takes improper advantage of his power over the will
of another depriving the latter of reasonable freedom of choice
- Violence – employment of serious or irresistible force to obtain consent.
- Intimidation – compelled by reasonable and well-grounded fear.
- Mistake
20. An absolute simulated contract is
- Void
21. A contract whose cause is the promise of a thing or service by the other parties
- onerous contract
22. A contract whose cause is the liberality of the benefactor
- A gratuitous contract
23. The following are requisites of rescissible payment
- the debtor is insolvent
- the debtor pays the debt
- the payment is not yet due
24. the following contract is voidable
- contract entered during the state of drunkenness or hypnotic spell
- contracts where one of the parties is incapable of giving consent.
- contracts where the consent of the other parties is force.
25. the following may annul the contract
- the party whose consent is vitiated by violence
- the incapacitated person when he attains capacity
- the guardian during the ward’s incapacity
26. the following contracts are void or inexistent
- that object is outside the commerce of men
- those which in contemplate an impossible service
27. the following are characteristics of void or inexistent contract
- the right to set up the defense of illegality cannot be waived
- the action or defense for the declaration
- the defense of illegality of contracts is not available to third person whose
interest are not directly affected.
28. the following contracts are required to appear in a public document for the convenience of of
the parties
- contract which has for their object the creation of real rights over immovable
property
- the power to administer the property
- the cession of actions or rights proceeding from an act appearing in public
documents.
29. contract of sale is perfected when
- upon deliver of the object of the contract
30. a contract of sale is NOT a
- real contract
31. an insurance contract is
- a contract of adhesion
32. a contract whose fulfillment depends upon the chance
- aleatory contract
33. only one party is obligated to do something
- unilateral contract
34. a stipulation that clearly and deliberately confers a favor upon the third person
- stipulation pour autrui
35. the offeree is given a certain period within which to buy or not the thing offered
- option contract
36. the parties do not intend to bound at all
- absolutely simulated contract
37. the remedy in equity by means of which a written instrument is made to conform to the real
intention of the parties when some error has been committed.
- reformation of contract
38. the cause thereof is the service renumerated
- renumatory contract
39. the action that is brought to set aside a voidable contract
- annulment
40. involves preliminary negotiations and bargaining
- preparation of contract
41. they must be in the form provided by law, in addition to having three essential requisites of a
contract
- formal contract
42. the term used when both parties are guilty
- pari delicto
43. its existence depends upon another contract
- accessory contract
44. the period of temporary sanity of a person
- lucid interval
45. inadequacy of cause in a contract
- lesion
46. it has all the essential requisites of a contract, but which may be set aside by reason of injury
or damage to a third person
- rescissible contract
47. it is designed to prevent the commission of fraud by requiring certain contracts to be in
writing
- statue of fraud
48. the delivery of object is required for its perfection
- real contract
49. it must refer to the substance of the thing which is the object of the contract or the principal
conditions which move a party into the contract in order to vitiate a consent
- mistake
50. the remedy allowed by law to the contracting parties and to third persons to repair the
damages caused them by a contract
- rescission
51. it is defective reason of incapacity or vitiated consent of one of the parties to a contract.
 - voidable contract
52. element without which contract would not exist
- essential elements of a contract
53. the adoption or affirmation of a contract which is defective because of a party’s vitiated
consent or incapacity
- ratification