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:
a. obligations.
b. consent.
c. contract.
d. stipulation
2. The stages of a contract according to the other
order of their occurrence are:
a. Birth, conception and consummation.
b. Conception, consummation and birth.
c. Conception, birth and consummation.
d. Consummation, conception and birt
3. The elements of a contract without which a contract
would not exist are known as:
a. Accidental elements
b. Natural elements
c. Special elements
d. Essential elements
4. A consensual contract has the following essential
elements:
a. Consent of the contracting parties, object
certain and cause or consideration.
b. Consent of the contracting parties, object certain,
cause or consideration and delivery of the object.
c. Consent of the contracting parties,object certain,
cause or consideration and formalities required
by laws.
d. Consent of the contracting parties, object certain,
delivery of the object and formalities required by
laws.
5. A real contract has the following essential
elements:
a. Consent of the contracting parties, object certain
and cause or consideration.
b. Consent of the contracting parties, object
certain, cause or consideration and delivery
of the object.
c. Consent of the contracting parties,object certain,
cause or consideration and formalities required
by laws.
d. Consent of the contracting parties, object certain,
delivery of the object and formalities required by
laws
6. A solemn or formal contract has the following
essential elements:
a. Consent of the contracting parties, object certain
and cause or consideration.
b. Consent of the contracting parties, object certain,
cause or consideration and delivery of the object.
c. Consent of the contracting parties,object
certain, cause or consideration and
formalities required by laws.
d. Consent of the contracting parties, object certain,
delivery of the object and formalities required by
laws.
7. Elements that accompany certain contracts unless
set aside or suppressed by the parties are known as:
a. Natural elements
b. Accidental elements
 c. Original elements
d. Stipulated elements
8. The warranty against hidden defects in a contract
of sale is an example of:
a. Natural elements
b. Accidental elements
c. Original elements
d. Stipulated elements
9. They refer to particular stipulations of the parties in
a contract:
a. Natural elements
b. Accidental elements
c. Inherent elements
d. Stipulated elements
10. One of the following is an essential element of a
sales contract.
a. Terms of payment
b. Rate of interest
c. Place of delivery
d. Warranty against eviction
11. A contract that can stand by itself is known a:
a. Accessory contract
b. Principal contract
c. Commutative contract
d. Gratuitous contract
12. A contract that does not have any special name
under the law is known as:
a. Nominate contract
b. Innominate contract
c. Special contract
d. Nominal contract
13. A contract where both parties are required to do
or give something is known as:
a. Bilateral contract
b. Unilateral contract
c. Gratuitous contract
d. Commutative contract
14. A contract where the parties contemplate a real
fulfillment, hence, equivalent values are given is
known as:
a. Commutative contract
b. Gratuitous contract
c. Onerous contract
d. Aleatory contract
15. 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 is known as the principle of:
a. Liberty contract
b. Mutuality contract
c. Relativity contract
d. Obligatory force of contract
16. The contract must bind both contracting parties -
its validity or compliance cannot be left to the will of
one of them. This is known as the principle of:
a. Mutuality contract
b. Relativity contract
c. Consensuality of contract
d. Freedom to contract
17. Contracts take effect only between contracting
parties, their assigns and heirs, except incases where
the obligations and rights arising from the contract
are not transmissible by their nature, or by stipulation
or provision of law. This principle of contract is
known as:
a. Relativity of contract
b. Mutuality of contract
c. Obligatory force of contract
d. Liberty of contract
18. D borrowed P500,000.00 from C. D died without
having paid his loan obligation to C, He left S, his son
and heir, properties worth P400,000.00.
a. S is liable to C for P500,000.00
b. S is liable to C for P400,000.00
c. S is liable to C for P100,000.00
d. S is not liable at all because he should not be
made to shoulder the obligation of his father.
19. A contract may be enforced by or against a third
person,except:
a. In the case of stipulation pour autrui
b. When the third person induces another to violate
his contract
c. In case of contracts intended to defraud creditors.
d. When the benefit to the third person is merely
incidental.
20. The principle that contracts are perfected by mere
consent is known as
a. Consistency of contract
b. Consensuality of contract
c. Consummation of contract
d. Mutuality of contract
21. Obligations arising from the contracts have the
force of law between the contracting parties and
should be complied with in good faith. From
perfection, the parties are bound not only to the
fulfillment of what has been expressly stipulated but
also to all the consequences which, according to their
nature, may be in keeping with good faith, usage and
law. This is known as the principle of:
a. Consummation of contract
b. Consensuality of contract
c. Obligatory force of contract and compliance
in good faith
d. Mutuality of contract
22. One of the following is not a real contract.
a. Pledge
b. Commodatum
c. Deposit
d. Sale
23. D borrowed P100,000.00 from C. The obligation is
secured by a mortgage on D's land and building. C
registered the mortgage with the Register of Deeds.
Thereafter, D sold the land and building to X who was
not personally aware of the existence of mortgage at
the time of sale since only the photocopy of the
transfer certificate of title which did not yet contain
the annotation of the mortgage was shown to him. It
was only when he went to the Register of Deeds to
register the sale of the land and building to him that
he learned of the mortgage.
 a. C can collect from D and if D cannot pay, C
can foreclose the mortgage although the land
and building are now owned by X.
b. C can collect from D, but if D cannot pau, C
cannot foreclose the mortgage because X was
not aware of the existence of the mortgage at the
time he bought the land and building,
c. DC cannot collect from He can only go after the
mortgage which was given as security.
d. C cannot foreclose the mortgage because X was
not a party theret.
24. 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.
a. Consideration
b. Contract
c. Consent
d. Cause
25. On June 1, 2015, S offered to sell his only car to B
for P100,000.00. B accepted the offer by mailing his
letter of acceptance on June 10, 2015. On June 12,
2015, B revoked his previous acceptance and mailed
his letter of acceptance on June 14,2015 and the letter
of revocation on June 14,2015.
55
a. The contract was perfected on June 14, 2015
when S received B's letter of acceptance.
b. The contract was not perfected because at the
time of the acceptance was received, the
parties were no longer of one mind.
c. The contract was not perfected on June 10, 2015
when B sent his letter of acceptance,,
d. The perfection of the contract retroacts to June 1,
2015 when the offer was made
26. On May 1,2015, S offered to sell a specific car to B
for P500,000.00. B sent his letter to S on May 8, 2015.
On May 10,2015, however, S died in a vehicular
accident and his secretary received the letter of
acceptance on May 12,2015 unaware that S had
already died.
a. The contract was perfected on May 8,2015 when
B sent his letter of acceptance.
b. The contract was perfected on May 12, 2015
when the secretary of S received the letter of
acceptance.
c. The contract was not perfected because the
offer S became ineffective when he died.
d. The contract was perfected on May 1, 2015
because the acceptance made by B on MAy 8,
2015 retroacts to the date of the offer.
27. 27. Three of the following instances will render an
offer ineffective before acceptance is conveyed.
Which one will not?
a. Civil interdiction of either party.
b. Insolvency of either party.
c. Insanity of either party
d. Intoxication of either party
28. S offers to sell his car to B for P125,000.00 cash.
B accepts the offer but is willing to pay only
P120,000.00.
a. The contract was perfected at the price of
P125,000.00
 b. The contract was perfected at the price of
P120,000.00
c. The contract was perfected at the price of
P122,500.00, the average price of the offer and
the acceptance.
d. The contract was not perfected because the
acceptance by B was qualified and its
constituted a counter-offer.
29. P appointed A as his agent to sell P's only Honda
Civic car for P400,000.00 cash. On november 7, 2015,
A, pursuant to the authority granted to him by P,
offered to sell the car to B at the price of P400,000.00.
B accepted the offer on November 8. 2015 by sending
a letter of acceptance to A, which letter of acceptance
was received by A on November 9,2015. On
November 10,2015, A informed P that B had accepted
the offer.
a. The contract was perfected on November 8,2015
when B sent his letter of acceptance.
b. The contract was perfected on November
9,2015 when A received the letter of
acceptance.
c. The contract was perfected on November 10,
2015 when A notified P, the true owner of the car,
that B had accepted the offer.
d. The contract was perfected on November 7, 2015
since the acceptance by B retroacts to the date of
the offer
30. 30. On July 1, 2015. Serrano offered to sell his only
Mercedes Benz car for P1,000,000.00 to Benitez who
was interested in buying the same. In his letter to
Benitez, Serrano stated that he was giving Benitez up
to July 31, 2015 to July 25, 2015, Serrano personally
went to Benitez to inform him that he was no longer
to willing to sell the car unless the price was
increased to P1,400,000/00 because another buyer
was interested in buying the car for the said amount
of P1,400,000.000.
a. Benitez may compel Serrano to sell to him the car
for P1,000,000.00
b. Serrano may validly withdraw his offer to
Benitez because the option was not founded
upon a consideration.
c. Serrano may not withdraw his offer until after the
lapse of the option period that he gave to Benitez.
d. The increase in price made by Serrano was not
valid because it was made within the option
period.
31. 31. Rockman and Company published an
advertisement in the newspaper which reads as
follows "INVITATION TO BID: Construction of the
company's warehouse located at 123 Luzon Street,
Sta. Quiteria, Quezon City." The advertisement also
included the specifications of the warehouse to be
constructed. Three companies submitted their bids:
ABC Company, with a bid price of P4,500,000.00 - DEF
Company, PP4,750,000.00 - and GHI Company,
P5,000,000.00. After considering the financial
capability, reputation and experience of the bidders,
the kind and quality of materials to be used and other
factors, Rockman and Company accepted the bid of
DEF Company. ABC Company, the lowest bidder,
now questions the award made by Rockman
 Company to DEF Company which submitted a higher
bid.
a. The award to DEF Company is voidable because
it was only the second lowest bidder.
b. ABC Company should be the winning bidder
having submitted the west bid.
c. The award to DEF Company is valid because
Rockman Company was not bound to accept
the lowest bidder.
d. The award to DEF Company is void by reason of
Rockman's violation of the terms of the invitation
to bid.
32. 32. One of the following is not incapable of giving his
consent.
a. Insane persons.
b. Deaf-mutes who do not know how to write.
c. Deaf-mutes who know how to read.
d. Unemancipated minors.
33. 33. A contracts entered into by an incapaciatated
person is:
a. Void
b. Voidable
c. Recissible
d. Unenforceable
34. 34. Contracts entered into in a state of drunkenness
or during hypnotics spell are:
a. Valid
b. Voidable
c. Recissible
d. Void
35. A contract entered into by an insane person
during lucid interval is:
a. Valid
b. Voidable
c. Recissible
d. Void
36. 36. Aside from fraud and undue influence, the
following are the vices of consent, except:
a. Violence
b. Intimidation
c. Mistake
d. Dealer's talk.
37. 37. Mistake in three of the following will make a
contract voidable. Which one will not?
a. Mistake as to the substance of the thing which is
the object of the contract.
b. Mistake as to the principal conditions which
principally moved one or both parties to enter into
the contract
c. Mistake as to the identity or qualifications of one
one of the parties, which identity or qualifications
have been the principal cause of contract.
d. Simple mistake of account.
38. 38. It involves the employment of serious or
irresistible force to obtain consent.
a. Intimidation.
b. Threat.
c. Violence
d. Moral coercion
39. 39. It is present 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 and ascendants, to give his
consent.
a. Violence
b. Physical coercion
c. Intimidation
d. Mistake
40. 40. One of the following contracts is not vitiated by
intimidation or violence, and hence valid.
a. A contract of sale which was signed by a party
because his arm was being twisted by a third
person.
b. A contract of sale which was entered into
because the other party was pointing a gun at his
wife.
c. A contract where a party was compelled to
assign his property to the other to pay a just
debt because the latter threatened to sue him
in court if he does not pay his debt.
d. A contract of donation of a parcel of land which a
party signed because the other party threatened
to burn his house.
41. 41. It exists when a person takes improper advantage
of his power over the will of another depriving the
latter of a reasonable freedom of choice.
a. Intimidation
b. Duress
c. Threat
d. Undue influence
42. 42. Fraud exists in three of the following. Which is the
exception?
58
a. When through the insidious words or
machinations of one of the contracting parties,
the other is induced to enter into a contract which,
without them, he would not have agreed to.
b. When there is a failure to disclose facts, when
there is a duty to reveal them, as when the parties
are bound by confidential relations.
c. When there is an expression of an opinion by an
expert which turned out to be wrong and the other
party relied upon such expert knowledge.
d. When the misrepresentation refers to the
usual exaggeration in trade and the other
party had an opportunity to know the facts.
43. 43. Abulencia, who knew that his ring was
embellished with glass, told Banzon that the
embellishment was emerald. Banzon, who knew that
his watch was gold-plated, told Abulencia that it was
made of pure gold. Banzon, believing that
Abulencia's ring was embellished with emerald, and
Abulencia, believing that Banzon's watch was made
of pure gold, then entered into a contract whereby
they exchanged their respective articles. A week later,
Banzon discovered that the ring was adorned only
wirth an ordinary glass.
a. The contract may be annulled at the instances of
Banzon since he discovered the fraud.
b. The contract may be annulled at the instance of
Abulencia since Banzon also employed fraud.
c. The contract is void because of the bad faith of
 both parties, hence, it shall not produce any
effect.
d. Neither party may ask for annulment since
both are guilty of fraud. The contract,
therefore, is valid.
44. 44. An absolutely simulated contract is:
a. Void
b. Voidable
c. Valid
d. Unenforceable
45. 45. One of the following statements does not pertain
to a relatively simulated contract.
a. The parties conceal their real agreement.
b. The parties are bound by their real agreement
provided it does not prejudice third persons.
c. The parties are bound by their real agreement
provided it is not contrary to law, morals, third
persons, public order or public policy.
d. The parties do not intend to be bound at all.
46. 46. Servando and Bernardo entered into a contract
where they made it appear that Servando was
mortgaging his lot and building to Bernardo to secure
a contract of loan. The truth, however, was that
Servando was selling his lot and building to
Bernardo. Which of the following statements is true?
a. The parties are bound by the contract of sale
b. The parties are bound by the contract of loan and
mortgage.
c. The parties are not bound at all
d. The parties are bound by the contract of sale only
when third persons are affected.
47. 47. One of the following is not a requisite of the object
of a contract.
a. It must be within the commerce of men
b. If it is a right, it must be intransmissible.
c. It must not be contrary to law, morals, good
customs, public order or public policy.
d. It must be determinate as to its kind or capable of
being made determinate without the need of the
parties entering into a new agreement.
48. 48. S and B orally entered into a contract whereby S
sold his one-year production of eggs in his poultry
farm to B for P50,000,00. Which amount B
immediately gave in cash to S. The contract between
S and B is:
a. Void because the object was not existing at the
time of execution of the contract.
b. Valid because future things may be the object
of the contracts.
c. Recissible because B will likely suffer damage if
the eggs do not come into existence.
d. Unenforceable because the contract was not in
writing
49. A died leaving properties estimated at
P1,000,000.00 to his sons S and T. SUbsequently, S
sold one-half of his inheritance to X for P300,000.00,
although his share was still to be delivered.
a. The contract is valid since the inheritance is
an existing inheritance.
b. The contract is void because what S sold is future
inheritance which may not be the object of a
contract as a rule.
 c. The contract is rescissible.
d. The contract is unenforceable.
50. 50. A contract whose cause is the promise of a thing
or service by the other party is:
a. An onerous contract
b. A gratuitous contract
c. A lucrative contract
d. A remuneratory contract
51. 51. A contract whose cause is the liberality of the
benefactor is:
a. A gratuitous contract or contract of pure
beneficence
b. A remuneratory contract
c. An aleatory contract
d. An onerous contract
52. 52. S sold his only car for P100,000.00 to B. Unknown
to S, B brought the car from him so that he could use
the same in a bank robbery. What is the status of the
sale of the car by S to B.
a. The sale is void because the motive of B is illegal.
b. The sale is valid because the illegality of the
motive of the parties to the contract does not
have any effect on its validity.
c. The sale is voidable because of the failure of B to
disclose his motive to S.
d. The sale is rescissible at the instance of S
because he would be damaged by the illegal
motive of B.
53. 53. One of the following is not requisite of cause in a
contract. Which is it?
a. It must exist.
b. It must be lawful
c. It must not be false
d. It must be clearly stated in the contract.
54. 54. D and C entered into a contract wherein D agreed
to give to C P50,000.00 with 30 days from the date of
the execution of their agreement, which, however,
does not state the consideration received by D from
C. What is the status of the contract between D and
C?
a. The contract is valid because the cause is not
stated in the contract.
b. The contract is valid because the cause is
presumed to exist and that is lawful.
c. The contract is rescissible because D suffered
damage by reason of absence of cause.
d. The contract is valid provided another contract is
executed between D and C to state the cause.
55. 55. The defective contracts arranged according to the
degree of their defectiveness from the least defective
to the most defective are:
a. Voidable, rescissible, unenforceable, and void
contracts.
b. Rescissible, unenforceable, voidable, and void
contracts.
c. Rescissible, voidable, unenforceable and
void contracts.
d. Unenforceable, rescissible, voidable, and void
contracts.
56. 56. The following are characteristic of rescissible
contracts, except:
 a. They may be set aside for equitable reasons.
b. They are valid until rescinded.
c. The action to rescind them prescribes.
d. The action to rescind them are not available
to third persons even if their interests are
directly affected.
57. 57. The following contracts are rescissible, except:
a. Those entered into by guardians whenever the
wards whom they represent suffer lesion by more
than one-fourth of the value of the things which
are the object of the contract.
b. Those entered into representation of absentees,
if the latter suffer lesion by more than one-fourth
of the value of the things which are the object of
the contract.
c. Those undertaken in fraud of creditors by the
latter can still collect the claims due them
through other means.
d. 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.
58. 58.G, the guardian of M, aminort, sold the fish
harvested from the fishpond of M for P7,4000.00. The
fish, however, had a value of P10,000.00.
a. The sale is rescissible because M suffered
lesion by more than one-fourth of the value of
the fish sold.
b. The sale is voidable because M is a minor.
c. The sale is unenforceable because G sold the
Fish without approval of the courts.
d. The sale is void because the object is outside the
commerce of men.
59. 59. The following are the requisites of a rescissible
payment, except:
a. The debt is already due.
b. The debtor is insolvent
c. The debtor pays the debt
d. The payment is not yet due
60. 60. Rescission of a contract will prosper in one of the
following cases. Which is it?
a. When there are other legal means to obtain
reparation of damages caused.
b. When he who demands rescission cannot return
whatever he may be obliged to restore.
c. When the object of the contract is in the
possession of a third person who purchased
the property of the debtor in bad faith.
d. When the action to bring rescission has
prescribed.
61. 61. D owes the following creditors: X, P50,000.00 - Y,
P60,000.00 - and Z, P90,000.00. He has assets valued
at P400,000.00. Subsequently, D donated, among his
assets, a parcel of land valued at P250,000.00 to C.
This donation and acceptance were made in a public
instrument. The donation of the land made by D to C
is:
a. Rescissible, because it was presumed to have
been made in fraud of creditors.
b. Enforceable, because D was not authorized by
his creditors.
c. void , because the donation and acceptance
 should be registered.
d. Voidable, because D does not have the free
disposal of his property.
62. 62. C filed a complaint in court against D to collect a
money debt amounting to P500,000.00. After due
hearing, the court rendered judgement in favor of C.
Shortly after the rendition of the judgement and
before C had collected D's debt, D sold a parcel of
land to X. Z, another creditor. Z, another creditor,
learned of the sale made by D to X and now file an
action to rescind the sale.
a. The right to rescind the sale is exclusively granted
to Z because it was he who fist learned of the sale
and he has still to file a claim to collect D's debt.
b. The right to rescind the sale is exclusively granted
to C because it was he who obtained a favorable
judgement and he has not yet collected D's debt.
c. Both C and Z have a right to rescind the sale
since the sale is presumed in fraud of
creditors having been made by party against
whom judgement has been rendered.
d. Neither C and Z has a right to rescind the sale.
63. 63. R, the representative of A, an absentee, sold the
corn with a value of P30,000.00 and the palay with a
value of P50,000.00, harvested from A's agricultural
farm for a total price of P50,000.00. A whose domicile
was subsequently known, was informed of the sale
made by G. Based on the foregoing facts, which of
the following statements is incorrect?
a. A may seek payment of an additional P30,000.00
to recover the damages suffered.
b. A may just seek rescission of the sale of the corn
to recover the damages he suffered
c. A may seek rescission of the sale of part of the
corn and part of the rice to extent of the damages
he sustained.
d. A may seek the rescission of the total sale to
recover the damages he suffered
64. 64. The following contracts are voidable, except:
a. Contracts entered into during a state if
drunkenness or hypnotic spell
b. Contracts entered into during a lucid interval
c. Contracts where one of the parties is incapable of
giving consent.
d. Contracts where the consent of one party is
vitiated by violence, intimidation, mistake, fraud,
or undue influence.
65. 65.The action of annulment must be brought within
four years. Which of the following is false with
respect to the reckoning of the beginning of the
prescriptive period?
a. In case of intimidation, violence and undue
influence, the period begins from the time the
defect in the consent ceases.
b. In case of fraud, the period begins to run from the
discovery thereof.
c. In chase of mistake, the period begins to run
from the time it was committed.
d. In cases of contracts entered into by minors or
other incapacitated persons, the period runs from
the time guardianship ceases.
66. 66. One of the following statements concerning
ratification of voidable contract is false. What is it?
 a. Ratification extinguishes the action to annul a
voidable contract.
b. Ratification cleanses the contract from all its
defects from the moment it was committed.
c. Ratification requires the conformity of the
party who has no right to bring the action for
annulment.
d. Ratification may be made by the guardian of the
incapacitated person, or the incapacitated person
upon attaining capacity, or the party whose
consent was vitiated.
67. 67.One of the following may not annul a voidable
contract.
a. The party whose consent is vitiated by violence,
intimidation, mistake, fraud or undue influence.
b. The incapacitated person when he attains
capacity.
c. The guardian, during the ward's incapacity.
d. The party who is capable of entering into a
contract.
68. 68. S, an employee of a private company, sold his car
for P100,000.00 to B, who he knew was only 17 years
old. S delivered the car to B who immediately paid the
amount of P100,000.00. Later, S was transferred to
another branch of his employer which was quite a
distance from his residence. He wanted to get back
the car from B so that will have something to use in
going to and from his new office. Neither B nor his
guardian has registered the sale with the Land
Transportation Office.
a. S can file an action to annul the sale he made to
B because he was mistaken in selling the car
which he realized he badly needed.
b. S can ask the court to annul the sale because B
was a minor when the consent of the sale was
entered into and it has not yet been recorded with
the Land Transportation Office.
c. Only B, when he attains the age of majority, or
his guardian, while B is still a minor, can bring
an action to annul the contract.
d. The minority of B has no effect on the validity of
the contract since the parties entered into the
contract of sale freely.
69. 69. The following contracts are unenforceable,
except:
a. Those entered into by one who has no authority
or legal representation.
b. Those that do not comply with the statute of
Frauds.
c. Those where both parties are incapable of giving
consent to contract.
d. Those where the consent of a party is vitiated
by intimidation, violence and undue influence.
70. 70. Under the Statute of Frauds, certains contracts
must be in writing to be enforceable although not
writing. Which is it?
a. Sale of movables at price of not less than
P500.00
b. A representation as to the credit of a third person.
c. An agreement made in consideration of marriage
other than mutual promise to marry.
d. An agreement for the leasing for a longer
 period than one year period of a personal
property
71. 71. The Statute of Frauds applies only to:
63
a. Wholly executed contracts.
b. Contracts wholly or partially executed on the part
of the debtor.
c. Contracts wholly or partially executed on the part
of the creditor.
d. Wholly executory contracts.
72. 72. Severino only sold a one-square meter lot for
P475.00 to Benedicto, chairman of Barangay
Mapayapa, who was officially authorized in barangay
resolution to look for and buy a lot where the
barangay would construct a barangay marker. Since
Benedicto did not have sufficient cash at that time, he
told Severino that he would give the amount the
following day. The next day, Benedicto went to the
place of Severino to pay the price of the lot but
Severino refused to accept it, saying that the sale is
unenforceable not being in writing.
a. The sale of the lot is enforceable although not in
writing because the price is less than P500.00
b. The sale is enforceable because Benedicto was
duly authorized to buy the lot through a resolution
which is in writing.
c. The sale of the lot is void not being in a public
instrument.
d. The sale is unenforceable since the sale of
real property must be in writing regardless of
the price to be enforceable.
73. 73. On June 1, 204, Mother Lilar, a movie producer,
met Claudine Santos, a movie actress at the lobby of
the Manila Hotel. Mother Lilac informed Claudine
Santos that she was producing a movie the filming of
which would start on AUgust 1,205 and that she was
offering Claudine Santos the starring role for the role
for a fee of P2,000,000.00. Claudine Santos accepted
the offer and shook hands with Mother Lilac to seal
their agreement. However, Mother Lilac gave
Claudine Santos a check for P200,000.00 as initial
payment. On August 1 ,2015, Mother Lilac called
Claudine Santos for the shooting of the movie but
Claudine Santos refused to honor the agreement
saying that it was not enforceable, not being in
writing.
a. Mother Lilac cannot enforce the contract against
Claudine Santos because it was entered into
orally.
b. Mother Lilac can enforce the contract against
Claudine Santos because Claudine Santos
had accepted benefits under the contract.
c. Claudine Santos may just return the payment
because it was made in check which is not legal
tender.
d. Claudine Santos is not bound under her
agreement with Mother Lilac because she did not
sign in writing.
74. 74. D was driving on his way to Manila from the
province when he suffered a busted tire. Not having
any spare tire, he went to a nearby car spare parts
store to buy a new tire. However, he did not have
 sufficient money with him so he phoned G, his friend,
who happened to know S, the store owner. G then
instructed D to give S the telephone through which G
told S "Don't worry. If D cannot pay, just charge me."
D was thus able to buy a new tire for P6,000.00 for S
issued D sales invoice.
a. If D cannot pay, S can proceed against G to make
good his promise to pay D's debt.
b. G's promise cannot be enforced against him
because he did not execute any writing for the
guaranty he made.
c. S can enforce G's promise to answer for D's debt
since the guaranty was witnessed by D.
d. S can enforce G's promise because there was
writing of some kind, the invoice for the sale of the
tire.
75. 75. A month ago, S, 17 ½ years old, orally sold his
bicycle for P2,000.00 to B, his neighbor, who was only
16 years old. M, the mother of S, learned about the
sale by S of his bicycle and demanded that S give her
the amount he received. S, thus gave the proceeds of
the sale to his mother who spent the same for the
family's daily expenses. F, the father of B, also
learned about the purchase by B of the bicycle when
he saw it parked at their door and began using it
almost daily since B bought it. Based on the
foregoing facts, what is now the status of the sale
entered into between S and B?
a. Unenforceable because both parties were
incapacitated to enter into the contract.
b. Unenforceable because the sale was not in
writing.
c. Validated from inception because of the
subsequent acts of the parent of the parties.
d. Voidable because while B was only 16 years old,
S was nearing the age of majority which is 18
years.
76. 76. The following contracts are void or inexistent,
except:
a. Those 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 whose cause or object did not exist at the
time of the transaction
d. Those where one of the parties employed
fraud to obtain the consent of the other
77. 77. The following contracts are void or inexistent,
except:
a. Those whose object is outside the commerce of
men.
b. Those which contemplate an impossible service.
c. Those were the intentions of the parties' relatives.
to the principal object of the contract cannot be
ascertained
d. Those whére one of the parties is guilty fraud
in performing his obligation.
78. 78. The following are characteristics of void or
inexistent contracts, except:
a. The right to set up the defense of illegality cannot
be waived.
b. The action or defense for the declaration of the
inexistence of a contract does not prescribe
 c. A void contract can be ratified by the
acceptance of benefits under it by one or both
of the parties
d. The defense of illegality of contracts is not
available to third persons whose interests are not
directly affected.
79. 79. If the illegal contract between the parties is a
criminal
offense and both parties arc guilty (in pari delicto),
such illegal contract shall produce the following
effects, except:
a. the parties shall have no right of action against
each other.
b. both parties shall be criminally prosecuted
c. the effects and instruments of the crime will be
confiscated in favor of the government
d. the parties may recover what they have given
if it is not illegal in itself.
80. 80. If the illegal contract between the parties is a
criminal offense but only one party is guilty, such
illegal contract shall produce the following effects,
except:
a. the guilty party will be criminally prosecuted
b. neither party may compel the other to comply with
his undertaking
c. the instruments shall be confiscated in favor of
the government.
d. the innocent party cannot recover what he
has given.
81. 81. I the contract is illegal but it does not constitute a
criminal offense and only one party is guilty, such
illegal contract shall produce the following effects,
except:
a. The guilty party cannot recover what he has
given.
b. The guilty party cannot ask for the fulfillment of
what has been promised him.
c. The innocent party cannot be compelled to
comply with his promise
d. The innocent party cannot demand the return
of what he has given.
82. 82. The following contracts are required to appear in
a public document for the convenience of the parties
so that they may be registered into the proper
recording office, except:
a. Contracts which have for their object the creation
of real rights over immovable property.
b. The acceptance of an inheritance.
c. The power to administer property.
d. The cession of actions or rights proceeding from
an act appearing in a public document.
83. 83. Reformation of instruments has the following
requisites, except:
a. There must be a meeting of minds of the parties
to the contract.
b. The true intention of the parties is not expressed
in the instrument.
c. The failure of the instrument to express the true
intention of the parties is due to mistake, fraud,
inequitable conduct or incident.
d. The contract must be in a public instrument.
84. 84. Reformation of an instrument is available in the
following cases, except:
 a. When a mutual mistake of the parties causes
then failure of the instrument to disclose their
agreement.
b. When one party was mistaken and the other party
acted fraudulently or inequitably in such a way
that the instrument does not show their true
intention.
c. When a party was mistaken and the other knew
or believed that the instrument did not state their
real agreement.
d. When one of the parties has brought an action
to enforce the contract.
85. 85. Reformation is not available in the following
cases, except:
a. Simple donations inter vivos wherein no condition
is imposed.
b. Wills.
c. When the real agreement is void.
d. When through the ignorance, lack of skill,
negligence or bad faith on the part of the
person drafting the instrument or of the clerk
or typist, the instrument does not express the
intention of the parties
86. 86. As a rule, a, contract of sale is perfected:
a. Upon compliance with the requirements of the
law as to form.
b. Upon delivery of the object of the contract.
c. Upon the meeting of the minds on the thing
which is the object of the contract and upon
the price.
d. Upon demand.
87. 87. With the intention of raising money to buy a gun
which he would use in killing X, his mortal enemy. S
sold his only car for P100,000.00 cash to B who
knew nothing of the intention of the S in selling the
car. After the sale, S was able to buy a gun complete
with all the papers required by law. B, on the other
hand, was able to register the car in his name at the
Land Transportation Office.
a. The sale of the car by S to B is valid provided S
does not kill X.
b. The sale of the car by S to B is void if S kills X.
c. The sale of the car by S to B is valid whether
S kills X or not.
d. The sale of the car by S to B is void whether S
kills X or not.
88. 88. Six years ago, Marcelo, 17 years old, sold his onehectare agricultural lot to Bernardo for
P100,000.00.
Marcelo invested the proceeds of the sale in the
business which was successful at the start but had
gone through difficult times as a result of the
economic crisis. He thought of the agricultural lot that
he sold to Bernardo which had been enjoying bumper
crops since Bernardo bought it from him. Marcelo
now approaches you to seek your help on whether it
would still be possible to annual the sale of the
agricultural lot to Bernardo. What advice will you give
to Marcelo?
a. Only Marcelo may annual the sale on the ground
of his incapacity.
b. Only Bernardo may annual the sale on the ground
of Marcelo's incapacity.
 c. Neither Marcelo or Bernardo may annual the
sale on the ground of Marcelo's incapacity.
d. Both Marcelo and Bernardo may annual the sale
on the ground of Marcelo's incapacity.
89. 89 . A contract of sale is not a:
a. Principal contract.
b. Nominate contract.
c. Consensual contra
d. Real contract
90. 90. Gregorio, a wealthy businessman, had often paid
debts of Demetrio, his younger brother, in order to
maintain the family's good name. one day, Gregorio
received a text message in his cell phone from
Bernardo, a banker, informing Gregorio that Demetrio
had obtained a loan from the bank but had fallen
behind in his payments. Gregorio texted back as
follows: "Don't worry if he doesn't pay in three
months, I will be the one to pay." No other information
was contained in the body of the text message. After
three months, Bernardo sent again a text message to
Gregorio to inform him that Demetrio had not made
any payments and that Bernardo was demanding
prom Gregorio on account of the promise he had
made three months before.
a. Bernardo may enforce payment against Gregorio
on account of his promise since he had been
paying off the other debts of Demetrio.
b. Bernardo may not demand payment from
Gregorio because Gregorio's promise is
unenforceable
c. Bernardo may enforce payment against Gregorio
as long as Bernardo did not erase in his cell
phone the text message he received from
Gregorio which is written evidence of Gregorio's
promise.
d. Bernardo may enforce payment from Gregorio
because as a wealthy businessman, Gregorio
should protect his name and that of his family.
91. 91.Perfecto offered to sell his house and lot to
Reynaldo for P1,000,000.00. Perfecto told Reynaldo
that he was giving Reynaldo thirty (30) days to decide
whether to buy or not the house and lot. Reynaldo
accepted the option but did not give anything to
Perfecto to support the option given to him. Twenty
days later, Perfecto found another buyer who was
ready to buy the house and lot for P2,000,000.00.
Perfecto wants to ask you whether he can still
withdraw the offer he made to Reynaldo. Decide.
a. Yes, Perfecto may withdraw the offer because he
stands to gain an added profit of P500,000.00
and this be more than enough to pay any
damages to Reynaldo.
b. Yes, Perfecto may withdraw the offer by just
informing Reynaldo of such fact.
c. No, Perfecto may not withdraw the offer because
the option was accepted by Reynaldo although
Reynaldo did not give anything in support thereof.
d. No, Perfecto may not withdraw his offer until the
lapse of the period given to Reynaldo to exercise
his option
92. 92. D insured his house against fire with C Insurance
Company. The insurance policy which was prepared
 and printed by C Insurance Company was signed by
D after reading its terms. You are to determine which
of the following characterize the contract between D
and C Insurance Company.
I. Auto-contract.
II. Contract of adhesion.
III. Aleatory contract.
IV. Nominate contract.
The contract between D and C Insurance Company is:
a. I, II and III
b. II, III and IV
c. I, II and IV
d. I, III and IV
93. 93. Datiles obtained from Cortex a loan of P50,000.00
which was payable in 2 months. Datiles failed to pay
the debt on the due date despite repeated demands
from Cortex. When the debt was still outstanding after
6 months, Cortex asked his counsel, Atty. Antolin, to
write a letter to Datiles to demand payment within one
(1) week and with a threat of court action if no
payment was not received within the said period.
Datiles, afraid of the threat of a court action against
him, was constrained to sign a deed assigning his lot
in favor of Cortex to pay his debt.
a. The deed of assignment if voidable because of
intimidation employed upon Datiles.
b. The deed of assignment is valid and
enforceable, the threat of a court action made
by Cortex through his lawyer being a
legitimate exercise of his right.
c. The deed of assignment is voidable because of
the undue influence exerted by Atty. Antolin, the
counsel of Cortex, on Datiles.
d. The deed of assignment is void because Datiles
did not give his consent voluntarily.
94. 94. D obtained a loan of P100,000.00 from C. The loan
agreement showed that the loan was payable within
one year with interest at 6% per annum. However,
there was no provision saying that the rights and
obligations of the parties would be transmitted to
their heirs or successors in interest. Before maturity,
C died leaving his son S as heir. Which of the
following statements is correct?
a. S cannot collect from D although no mention was
made in the agreement that the credit would be
transmitted to the heirs of C.
b. S can collect from D although no mention was
made in the agreement that the credit right
would be transmitted to the heirs.
c. S cannot collect from D because the credit right
is personal to C.
d. S cannot collect from D because the law prohibits
the transmission of credits rights.
95. 95. W, a woman, agreed to live with H, a man, as the
wife of H without the benefit of marriage in exchange
for the monthly support of P10,000.00 that H would
give to W. Both H and W are single, of legal age, and
there is no legal impediment for them to get married.
Their parents have no objections to the two getting
married. Based on the foregoing information, which
of the following statements is true?
a. The agreement between H and W is valid
because they can legally get married if they want
 to.
b. The agreement between H and W is void for
being contrary to morals.
c. H may legally demand that W live with him as his
wife.
d. W may legally demand that H give her the
monthly support of P10,000.00 that he had
promised.
96. 96. Angel dela Guardia, guardian of Eduardo Menor,
a minor, sold the palay harvested from the land
belonging toEduardo Menor for P42,000.00. The palay
had a value of P50,000.00. At the time of the sale
seven months ago, Eduardo was 17 ½ years old.
Eduardo wants to recover the damages he suffered
under the contract entered into by his guardian. What
is the remedy available to Eduardo Menor?
a. Annulment because Eduardo Menor was only 17
1/s years old at the time, the sale was made by
Angel dela Guardia.
b. Rescission because Eduardo Menor suffered a
lesion of P80,000.00.
c. Both rescission and annulment.
d. Neither rescission and annulment
97. 97. Which of the following contracts is rescissible?
a. Contracts entered into during a hypnotic spell.
b. Contracts entered into a state of drunkenness.
c. Contracts entered into to defraud creditors
when the latter cannot collect the claims due
them.
d. Contracts where both parties are incapable of
giving consent.
98. 98. A, a duly authorized agent of P, wrote a letter to B
on August 1, 2015 offering to sell P's only Mercedes
Benz car for P200,000.00 cash. On August 3, 2015, B
wrote a letter to A stating that he was accepting all
the terms of the offer, which letter was received by A
on August 5, 2015. Before A could relay such
acceptance to P, P died in a vehicular accident on
August 6, 2015.
a. The contract was not perfected because P, the
real party to the sale, died before the acceptance
came to his knowledge.
b. The contract was perfected on August 1, 2015.
c. The contract was perfected on August 3, 2015.
d. The contract was perfected on August 5, 2015
99. 99. The cause of a contract differs from the motive of
each party to the contract in that motive:
a. is an essential element of a contract
b. although illegal, does nqt affect the validity of
the contract.
c. is always known by the other party.
d. when illegal will render the contract void.
100.P is a minister of a certain church whose
members include X. X regularly cönfides in P
because of his many personal problems. P is
interested in buying the lot of X and uses his position
as elder of the church and confidant of X to convince
to sell to him the lot. Should X sell the lot to P by
reason of P. taking advantage of his confidential
relationship with X, the contract between them would
likely be voidable because of:
a. intimidation.
b. undue influence.
c. fraud.
d. Mistake.