1.

The following are the essential elements of contract, except:

a. Consent of the contracting parties
b. Object certain which is the subject matter of the contract
c. Price which must be stated in acceptable legal currency
d. Cause of the obligation which must be established

2. Statement 1: For a contract to be perfected, the offer must be absolute and the acceptance must be certain
Statement 2: Acceptance made by letter or telegram prima facie bind the offered from the time the offer was
made
a. both statements are correct c. only statement 2 is correct
b. only statement 1 is correct d. both statements are not correct

3. This refers to a contract whereby the offerer gives the offeree the privilege to purchase or not a certain
object for a fixed price at any time within an agreed period for a fixed price.
a. earnest contract c. preparatory contract
b. option contract d. voidable contract

4. Statement 1: Business advertisements of things for sale are definite offers, and contract is perfected upon
its acceptance.
Statement 2: Advertisements for bidders are invitations to make proposals, and the advertiser is bound to
accept the lowest bidder provided he complies with the notice requirements
a. both statements are incorrect c. only statement 1 is correct
b. both statements are correct d. only statement 2 is correct

5. The following persons cannot give his/her valid consent,except:

a. a pianist of the Philharmonic Orchestra who was born blind. He has been a member of the orchestra for 20
years now
b. a 15-year old genius students who just graduated summa cum laude for BS Accountancy atUniversity of
thePhilippines
c. person suffering from senile dementia
d. none of the above

6. This refers to the medical condition of mental illness of such a severe nature that a person cannot
distinguish fantasy from reality, cannot conduct her/his affairs due to psychosis, or is subject to uncontrollable
impulsive behavior.
a. loco de amor c. Imbecility
b. Insanity d. lack of common sense

7. This refer to the period in which an insane person temporarily regains his sanity and is capable of perfect
enjoyment of his mental faculties for the time being
a. lucid interval c. intermittent sanity
b. Interlude d. Intervention

8. Statement 1: Contracts entered into during a lucid interval are invalid.

Statement 2: Contracts agreed to in a state of drunkenness or during a hypnotic spell are void.
a. both statements are incorrect c. only statement 1 is correct
b. both statements are correct d. only statement 2 is correct

9. Persons specially disqualified by law to enter into a contract are the following, except:
a. Spendthrifts c. Hospitalized lepers
b. Those persons under civil interdiction d. Those suffering from incurable disease

10. A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud is
a. valid c. voidable
b. void d. annullable
11. This condition occurs when a person believes that a condition or event exists when it does not
a. mistake of truth c. mistake of law
b. mistake of fact d. mistaken identity

12. The following conditions will vitiate the consent, except:

a. If the mistake refers to the substance of the thing which is the object of the contract
b. If the mistake refers to simple mistake of account which shall be corrected, such as when the error arises
from mathematical computation
c. If the mistake refers to those conditions which have principally move one or both parties to enter into a
contract
d. If the mistake refers to the identity or qualifications of one of the parties if such identity or qualification have
been the principal cause of the contract

13. This refers to mistakes where the legal effect of an agreement of the real purpose of the parties is
frustrated and the same is mutually committed by parties due to lack of understanding on the complexities of
the consequences of the provisions of law.
a. mistake of facts c. mistake of facts and law
b. mistake of law d. mistaken identity

14.This refers to defect in consent when one of the contracting parties is compelled 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, to give his consent.
a. physical coercion c. undue influence
b. mora accipiendi d. moral coercion

15. The following are considered in determining whether undue influence deprive the party the reasonable
freedom of choice, except:
a. degree of intoxication of one of the contracting c. one of the party is in financial distress
parties d. degree of education of one of the parties
b. the family relations between the parties

16. Refer to fraud done that without it, consent would have not been given. This renders the contract voidable
a. ordinary fraud c. incidental fraud
b. extraordinary fraud d. causal fraud

17.This refers to fraud done that without it, the creditor would've agreed to different terms. The contract
remains valid but the part offended is entitled to damages
a. dolo causante c. dolo cessante
b. dolo incidente d. dolo commandante

18. This refers to a contract that, by mutual agreement, does not express the true intent of the parties. It does
not have legal effect and does not create juridical ties between the parties.
a. illegal contract c. to-good-to-be-true contract
b. simulated contract d. unenforceable contract

19. Which of the following may be a valid object of a contract?

a. lotto ticket drawn 2 weeks ago c. chicken infested with asian-flu virus
b. dilapidated residential house d. vibranium from Wakanda country

20. Which of the following may not be a valid object of a contract?

a. Nokia 3310 cellular phone available on online c. Portion of Mt. Banahaw previously declared as
shopping sites protected area for conservation
b. Rice that has yet to be harvested next week d. all of the above

21. The following cannot be the object of a contract, except:

a. Those that are licit or not contrary to law, morals c. Those that are outside the commerce of men
and good customs d. Those rights that are intransmissible
b. Those that can be possibly accomplished

22. Impossible thing or service are

a. Those that are contrary to law, morals, good customs, public order or public policy
b. Those that are outside the commerce of men
c. those future inheritance comprises of real and personal properties
d. Those objects or performances that is incapable of being done, attained or fulfilled

23. Refers to the immediate, direct, most proximate and essential reason or the driving force why a party
enters into a contract.
a. consent of the contracting parties c. the lawful cause of the contract
b. object of the contract d. the price stipulated by the parties

24. The cause of this kind of contract is the generosity of one of the contracting parties
a. onerous contract c. gratuitous contract
b. remuneratory contract d. contract of donation

25. Motive is distinguished from contract such that

a. The illegality of the motive does not invalidate c. It is the direct and most proximate reason ofa
contract contract
b. The illegality of the motive will invalidate contract d. It is presumed lawful and existing in every
contract

26. Contracts without cause, or with unlawful cause

a. are void from the beginning
b. are valid until annulled
c. entitles the parties to seek rescission of the contract
d. allows the innocent party to recover damages from the other

27. Lesion or inadequacy of cause shall invalidate a contract

a. When there was fraud, mistake or undue influence
b. When the selling price is below the fair market value of the property
c. When both the seller and the buyer are minors
d. When the amount is payable in foreign currency

28. When cause is not stated in a contract,

a. it is void and produces no legal effect c. it is considered voidable where any party may
b. lawful cause is presumed to exist ask for annulment of the contract
d. it is presumed that the cause is illegal

29. Which of the following is a contract of pure beneficence?

a. deed of absolute c. deed of donation
b. real estate mortgage d. special power of attorney

30. Which of the following contracts should be in writing, otherwise, it is void

a. contract of sale involving specific motor vehicle with a price of P500,000
b. authority ofthe agent to sell thereal property of the owner
c. the power to administer all the business enterprises of the owner
d. lease of condominium unit at P10,000 per month

31. Refers to those that are perfected by the delivery of the object of the contract such as depositum, pledge
and commodatum
a. formal contract c. real contract
b. solemn contract d. accessory contract
32. The following contracts shall appear in public instruments to be valid to bind third person, except:
a. renunciation of hereditary rights c. transmission of real rights over immovables
b. power to administer property for another d. obligation to deliver 10 sacks of rice

33. Which is a formal contract?

a. Commodatum c. real estate mortgage
b. Pledge d. Marriage

34. Contracts perfected by mere consent is referred to as

a. consensual contracts c. formal contracts
b. real contracts d. solemn contracts

35. Public instruments mean that

a. the instrument is computer-printed
b. the instrument is notarized by a notary public
c. the instrument bears the seal of the contracting parties
d. the instrument is signed by the parties and their witnesses

36. An instrument is referred to as private instrument where

a. the instrument is computer-printed
b. the instrument is notarized by a notary public
c. the instrument bears the seal of the contracting parties
d. the instrument is reduced in writing and signed by the parties

37. It is the meeting of minds between two persons whereby one binds himself, with respect to the other,to give
something or to render some service
a. Contract c. negotiorum gestio
b. Obligation d. quasi-delict

38. Which is not an essential element of a contract?

a. Consent of the contracting parties c. Cause of the obligation which must be
b. Object certain which is the subject matter of the established
contract d. Warranty against hidden defects

39. This refer to those found in certain contracts unless set aside or suppressed by parties such as warranty
against eviction and warranty against hidden defects in a contract of sale
a. essential elements of a contract c. incidental elements of a contract
b. natural elements of a contract d. accidental elements of a contract

40. This refers to the fulfillment or performance of the terms and conditions agreed upon in the contract may be
said to have been fully accomplished or executed
a. perfection of a contract c. termination of a contract
b. preparation of a contract d. annulment of a contract

41. 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
Characteristics of a contract is referred to as:
a. consensuality of contract c. generosity of contract
b. liberality of contract d. relativity of contract

42. An agreement to marry a 15-year old girl with a 30-year old bachelor is
a. valid, provided that the girl, her parents and the bachelor all agreed in writing
b. voidable, since one of the contracting part is a minor
c. void, since the agreement is contrary to public policy protecting the minor
d. valid, provided that the girl and the bachelor is deeply in love with each other
43. Which of the following is a nominate contract?
a. I give that you may do c. I do that you may do
b. I do that you may give d. I give that you may pay

44. It refers to the reciprocal understanding or agreement between parties. This is an essential ingredient in the
creation of a legally enforceable contract.
a. reciprocity of contract c. relativity of contract
b. mutuality of contract d. consensuality of contract

45. It means that stipulations in the contract are binding only upon the parties and their successors.
a. Relativity of contract c. Mutuality of contract
b. Consensuality of contract d. Reciprocity of contract

46. The following are rights that can be transmitted by the parties to their heirs or assigns, except:
a. usufructuary rights c. parental rights
b. leasehold rights d. right of redemption

47. It refers to the action where the creditor files an action in court for rescission of acts or contracts entered
into by the debtor designed to defraud the creditor.
a. Accion pauliana c. Accion publicciana
b. Accion reinvigatoria d. Accion directa

48. Refers to a contract or provision in a contract that confers benefit to a third party
a. Stipulation del beneficio c. Stipulation credito
b. Stipulation pour autrui d. Stipulation pauliana

49. The following are requisites for a creditor to exercise accion pauliana, except:
a. The creditor is not prejudiced by actor contract entered into by the debtor
b. The creditor must have pursued all properties of the debtor subject to execution
c. The debtor does an act or enter into a contract with another person to defraud the creditor
d. The creditor has no other available legal remedy

50. Refers to contracts that are perfected by the delivery of the object of the contract such as depositum,
pledge andcommodatum
a. consensual contracts c. formal contracts
b. real contracts d. solemn contracts

51. These contracts are those where there is an exchange of valuable consideration between parties such as
contract of sale and barter
a. onerous contracts c. indemnity contracts
b. gratuitous contracts d. remuneratory contracts

52.Which is a gratuitous contract?

a. contract of sale c. contract of donation
b. contract of lease d. employment contract

53. Which is an accessory contract?

a. contract of agency c. contract of pledge
b. contract of barter d. contract of loan

54. It refers to a contract where only one of the party drafted the contract, while the other party merely signified
his consent to the prepared contract. This includes contract of insurance, contract of carriage and bank
promissory notes and the like.
a. auto contract c. contract of carriage
b. contract of adhesion d. pre-numbered contract
55. Which of the following is a real contract?
a. sale of parcel of agricultural land c. lease of tourist bus
b. pledge of jewelry to pawn shop d. partnership contract

56. It refers to a contract where one which the fulfillment of the obligation depends upon chance such as
contractof insurance
a. emptio rei spei contract c. commutative contract
b. aleatory contract d. conditional contract

57. When there is doubt whether the intention of the party is either a deed of absolute sale or real estate
mortgage,the doubt should be resolve in favor of
a. deed of absolute sale c. nullity of the contract
b. deed of real estate mortgage d. unenforceability of the contract

58. This is used to indicate the doubt a judge must entertain before s/he can search for or apply a secondary
meaning. It means vagueness or uncertainty of meaning, the possibility of interpreting an expression in two or
more distinct ways.
a. ambiguity c. metaphor
b. undue influence d. irony

59. It refers to an ambiguity that does not readily appear in the language of a document, but arises from a
collateral matter when the document's terms are applied or executed.
a. intrinsic ambiguity c. causal ambiguity
b. formal ambiguity d. extrinsic ambiguity

60. Refer to those which have caused a particular economic damage either to one of the parties or to a third
person and which may be set aside even if valid
a
. voidable contracts c. void contracts
b. rescissible contracts d. unenforceable contracts

61. This refers to the remedy allowed by law to the contracting parties and to third person/s to repair the
damage cause them by a contract.
a. annulment c. rescission
b. vitiation d. revocation

62. Which of the following is not a rescissible contract?

a. Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more
than one-half of the value of the things which are the object thereof
b. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due
them
c. 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
d. All other contracts specially declared by law to be subject to rescission

63. Payments made in a state of insolvency are considered

a. void contracts c. unenforceable contracts
b. voidable contracts d. rescissible contracts

64. To cancel a contract and restore the parties to their original positions before the contract, the parties should
execute a
a. Novation c. Rescission
b. Release d. Revocation

65. Which of the following statements regarding mutual restitution is not correct?
a. it creates an obligation to return the things which are the objects of the contract and their fruits
b. it creates an obligation to return the price with interest
c. no obligation to return when the thing is already in possession of party who acquired it in good faith
d. the party seeking rescission need not return whatever he obtained from the contract

66. This refers to the legal process of seizing property of the debtor to ensure satisfaction of judgment in favor
of the creditor
a. Garnishment c.levy
b. attachment d. distraint

67. The action to claim rescission must be commenced

a. within 4 years from the time the rescissible contract was entered into by the guardian
b. within 4 years from the time the minor reaches the age of minority
c. within 4 years from the time the creditor knew of the debtor's fraudulent contract entered intowith a third
person
d. all of the above

68. When an insolvent debtor donated several of his properties in favor of a third person, there is a prima
faciepresumption that
a. the debtor is truly a generous person
b. the donation is void for lack ofcapacity of the debtor to donate
c. the donation is made to defraud the creditors
d. the donation is voidable and the heirs ofthe debtor can sue for annulment of the contract

69. This refers to the remedy to correct a written instrument so that it conforms to the original intent of the
partiesto such an instrument.
a. reformation of instrument c. correction of instrument
b. interpretation of instrument d. annulment of instrument

70. When the parties do not agree on the stipulations contained in the contract, the proper action is
a. to reform the instrument c. to enforce the instrument
b. to cancel the instrument d. to seek damages to each other

71. If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the
proper remedy is
a. reformation of the instrument c. annulment of the contract
b. reformatting of the instrument d. enforcement of the contract

72. When a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement,
theremedy of the parties is
a. annulment of the contract c. seek damages to guilty party
b. execution of the contract d. reformation of contract

73. There shall be no reformation in the following case, except:

a. Wills c. Simple donations mortis causa wherein no
b. Simple donations inter vivos wherein no condition is imposed
condition is imposed d. When the real agreement is void

74. Which of the following contracts is donation inter-vivos?

a. commodatum c. antichresis
b. usufructuary d. simple donation

75. Readers to a contract which cannot be legally enforced because of some deficiency in the agreement. It
cannot be enforced unless ratified
a. unenforceable contract c. defective contract
b. invalid contract d. voidable contract
76. Marga orally sold to Oliva her house and lot for P1,000,000, where Oliva initially paid P100,000. After
payingthe balance, Oliva now seeks to register the lot in her name, but the Register of Deeds refused to do so.
Which Of the following statement is true in this situation?
a. The transaction involving the oral sale of house and lot is null and void
b. The contract between Marga and Oliva is unenforceable under the statute offrauds
c. The oral sale of house and lot, although unenforceable under the statute of frauds, it has been ratified by the
receipt of the consideration, and therefore, Oliva can compel Marga to execute the deed of sale in a public
instrument
d. If Marga does not want to execute the public instrument, she can rescind or cancel her agreement with Oliva

77. Drake represented himself as an agent of Holdem and sold the latter's car to King. Holdem did not
authorize anyone to sell his car to any person, and he has no intention of selling his car. The contract between
Drake and King is
a. Rescissible c. Unenforceable
b. Voidable d. Void

78. Koby verbally sold his land to Garp for P500,000. The contract entered into by parties is
a. Rescissible c. Unenforceable
b. Voidable d. Void

79. The husband, in his capacity as the head of the family, sold a paraphernal property of his wife in the latter's
name, without her consent. The contract of sale is
a. Unenforceable c. Void
b. Rescissible d. Voidable

80. This contract is without effect unless ratified

a. Marriage between first degree cousins c. Contract of sale between a guardian and his
b. Contract of sale between two insane persons ward
d. Donation between husband and wife

81. A defective contract because it is entered into in the name of another without or in excess of his authority
a. Void c. Rescissible
b. Voidable d. Unenforceable

82. The following cures the defect in an unenforceable contract, except:

a. Failure of defendant to object in time, to the presentation of parol (oral) evidence in court, thedefect of
unenforceability is cured
b. Acceptance of benefits under the contract
c. Estoppel sets in by accepting performance, the defect is waived
d. Novation of the original contract

83. Refer to those contracts that which is null and completely without legal force or binding effect between
parties
a. voidable contracts c. void contracts
b. unlawful contracts d. illegal contracts

84.Statement 1: A void contract produces no effect whatsoever either against or in favor of anyone; it does not
create, modify or extinguish the juridical relation to which to refers
Statement 2: The resolution of the validity or voidness of the contract remains a legal or judicial question as it
requires exercise of judicial function
a. Both statements are true c. Only statement 1 is true
b. Both statements are false d. Only statement 2 is true

85. Allan bought a parcel of land from Binoy on installment. When the first installment fell due, Allan did not
have available money, and he now pleaded impossibility of the performance.
a. Allan's obligation is extinguished because he has no available money to perform his obligation
b. Allan's obligation is extinguished because of the impossibility of performance
c. Allan is liable for pecuniary liability to fulfill the obligation to pay
d. Allan is liable because the obligation is to pay specific money

86. The following are considered void contracts, except:

a. Those which are relatively simulated or fictitious contracts
b. Those whose cause or object did not exist at the time of the transaction
c. Those whose object is outside the commerce of men
d. Those which contemplate an impossible service

87. Oral sale of prohibited drugs and paraphernalia worth P100,000 is

a. unenforceable contract c. impossible contract
b. unlawful contract d. contract beyond the commerce of men

88. The following are the characteristics of a void contract, except:

a. The right to set up illegality cannot be waived.
b. It cannot be ratified
c. Mutual restitution is allowed
d. The action or defense for the declaration of the inexistence of a contract does not prescribe.

89. This refers to a contract that is valid and binding unless avoided or declared void by a party to the contract
who is legitimately exercising a power to avoid the contractual obligations
a. voidable contract c. formal contract
b. void contract d. unlawful contract

90. The following are voidable contracts, except:

a. when one of the contracting parties is incapable of giving consent to a contract
b. when both of the contracting parties is incapable of giving consent to a contract
c. when consent is vitiated by violence
d. those entered into during state of drunkenness

91. The following are factors vitiating consent, except:

a. Mistake c. Intimidation
b. Dolo incidente d. Violence

92. Statement 1: all obligations are contract Statement 2: an action to annul a voidable contract generally
prescribes in four months
a. Both statements are correct c. Only statement 1 is correct
b. Both statements are not correct d. Only statement 2 is correct

93. The following are the requisites for mistake to vitiate consent, except:
a. The error must be substantial regarding the object of the contract or the condition which principally moved
one or both parties to enter into a contract
b. The error must be excusable and not cause by negligence
c. The error must be of fact
d. The mistake must be of law

94. Teach entered into a contract with Shiliew by threatening Shiliew that if he does not agree to make the
contract, Teach will publish defamatory matter concerning Shiliew's wife
a. The contract is valid because the defamatory matter to be published does not relate to Shiliew,the
contracting party
b. The contract is voidable because such publication when carried out whether true or not, will cause serious
harm to Shiliew and his wife
c. The contract is unenforceable but Shiliew is entitled to damages the moment the publication is made
d. The contract is void
95. Trafalgar sold to Basil his land with a market value of P3,000,000 for only P2,000,000.The sale with
inadequate price is
a. Rescissible c. Unenforceable
b. Voidable d. Valid

96. The contract entered into by the persons who cannot give consent is
a. Void ab initio, because actually there is no contract to speak of
b. Rescissible because of the damage caused to the incapacitated persons
c. Unenforceable only because the contract may be ratified
d. Voidable as there is consent although it is vitiated or defective

97. This refers to any improper or wrongful constraint, machination, or urgency of persuasion, by which one's
will is overcome and he is induced to do or forbear an act which he would not do, or would do, if left to act
freely.
a. misrepresentation c. intimidation
b. undue influence d. persuasiveness

98. The action for annulment of a voidable contract shall be

a. within 4 years from the time the minor reaches the age of 21
b. within 4 years from the time ofthe discovery of mistake or fraud
c. within 4 years from the death of the party who employed violence in obtaining the consent of another
d. within 4 years from the date of the execution of the voidable contract

99. Which of the following statements is true?

a. Ratification is the act of confirmation or validation of the prior act.
b. Ratification may be express or implied
c. Ratification may be oral or in writing
d. Ratification cleanses the defect in the contract, and its effect retroacts from the day the ratification was made

100. Who may not ratify a voidable contract?

a. The party who employs violence, intimidation, undue influence or fraud to obtain consent
b. The guardian of the incapacitated person during the latter's incapacity
c. The incapacitated person after he has attained capacity
d. The party whose consent is vitiated by mistake, violence, intimidation, undue influence or fraud