QUIZZER IN CONTRACTS (1)

SET A
TRUE OR FALSE
1. The validity or compliance of the contract may be left to the will of one of the
contracting parties.
A. TRUE
B. FALSE
2. Autonomy is a characteristic of a contract, which states that contracts are generally
effective only between the parties, their heirs or assigns.
A. TRUE
B. FALSE
3. Generally, contracts are perfected by mere consent.
A. TRUE
B. FALSE
4. An offer becomes effective even with the death of either party after acceptance
came to the knowledge of the offeror.
A. TRUE
B. FALSE
5. Motive as the more proximate or personal purpose which the contracting parties
have in view at the time of entering into the contract is an essential element and
must always be made known to both contracting parties.
A. TRUE
B. FALSE
6. Option contract is one wherein a person in exchange for a consideration, is given a
certain period of time within which to accept or not the offer of the offerer.
A. TRUE
B. FALSE
7. Advertisements for bidders is a form of a contract and the advertiser is bound to
accept the highest or lowest bidder.
A. TRUE
B. FALSE

SET A
 8. In a contract, there is the meeting of the minds or consent, whereas in a quasi-
contract, there is no consent but the law considers the parties as having entered
into a contract so that one will not be unjustly enriched or benefited at the expense
of another.
A. TRUE
B. FALSE
9. Conception of a contract is manifested by the offer and acceptance.
A. TRUE
B. FALSE
10. Lesion or inadequacy of a cause shall as a rule make a contract defective.
A. TRUE
B. FALSE
11. Consensual contracts are not perfected by mere consent of the parties regarding
the subject matter and the cause of the contract.
A. TRUE
B. FALSE
12. An offer must be certain and acceptance must not be qualified before there can be
meeting of minds between the parties.
A. TRUE
B. FALSE

MULTIPLE CHOICE
13. In a contract as written, RONNEL promises to pay HAZEL P7500 on July 04,
2019. The consideration received by RONNEL is not stated in the contract.
A. The contract is valid because the cause is always presumed to exist.
B. The contract is valid so long as it is in writing.
C. The contract is valid because cause is not essential to a contract.
D. The contract is void because the cause is not stated.

14. When the parties do not intend to be bound at all by their agreement, the contract
is
A. Apparent contract C. Assignment
B. Absolutely simulated D. Relatively simulated

15. The following except one are characteristics of a contract:

A. liberty C. obligatoriness
B. relativity D. consensual

16. In order that fraud may make a contract voidable:

A. It may be incidental but both parties should not be in pari delicto
B. It may be serious and the parties must be in pari delicto
C. It may be incidental but should have been employed by both parties.
D. It should be serious and should have not have been employed by both

SET A
 contracting parties.

17. The process of intentionally deceiving others by producing the appearance of a

contract which is different from the true agreement
A. Absolute simulation C. Fraud
B. Relative simulation D. Misrepresentation

18. The inadequacy of cause, like an insufficient price for a thing sold
A. Lesion B. Cession C. Dation D. Option

19. When in order to wrest consent, serious or irresistible force is employed there is:
A. Violence B. Mistake C. Intimidation D. Fraud

20. A contract to make a deposit, to make a pledge or to make a commodatum is a:

A. Consensual contract C. Solemn contract
B. Real contract D. Formal contract

21. Not a requisite of stipulation pour autrui

A. The contracting parties must have clearly and deliberately conferred a favor
upon third person
B. The stipulation must be part of the contract
C. The third person communicated his acceptance to the obligor before it
revocation
D. There must be an agency between either of the parties and the third person

22. The contract must bind both contracting parties.

A. Consensuality of contract C. Mutuality of contract
B. Obligatoriness of contract D. Relativity of contract

23. When there is concurrence of offer and acceptance, there is:

A. cause C. consent
B. subject matter D. prestation

24. Not an essential requisite of a contract:

A. Meeting of the minds C. prestation
B. consideration D. formalities

25. This is the accord or coincidence of the desires and intent of the parties to the
contract upon the subject matter and the cause.
A. Reformation C. Consent
B. Payment D. Ratification

SET A
 26. Which of the following is not a limitation upon the right to contract?
A. Those contrary to third person.
B. hose contrary to law.
C. Those contrary to morals.
D. Those contrary to public order.

27. The first step in the different stages of a contract is:

A. Perfection C. Consummation
B. Preparation D. Performance

28. Like incapacity, force or violence, the following cause vitiate consent or render it
defective so as to make the contract voidable except:
A. Reverential fear C. Undue influence
B. Threat D. Fraud

29. The stage of “death” of a contract, is;

A. when the parties come to an agreement
B. when there is a meeting of the parties’ minds.
C. when the contract is fully executed
D. when negotiations are in progress.

30. Not a requisite for a valid consent:

A. person must be capacitated
B. consent must be intelligent
C. consent must be free
D. parties are physically present

31. These persons are bound by contracts:

A. contracting parties C. assigns or assignees
B. heirs D. all of them

32. Contract that is made for a valuable consideration is:

A. onerous C. gratuitous
B. consensual D. real

33. The purely personal purpose which the contracting parties have in view at the time
of entering into the contract is:
A. object B. motive C. cause D. consideration

34. One which is perfected by the delivery of the thing which is the subject matter of
the contract:
A. Contract C. Real contract
B. Rescissible contract D. None of the above

SET A
 35. A contract where the fulfillment is dependent upon the chance, so the values may
vary because of the risk or chance.
A. Commulative C. Remunerative
B. Aleatory D. Gratuitous

36. A contract where one party receives no valuable consideration and the cause is
the liberality of the benefactor is
A. A gratuitous contract C. An onerous contract
B. A unilateral contract D. A commutative contract

37. Not a requisite for the validity of a contract

A. Consent B. Object C. Cause D. Delivery

38. LAWRENCE owes MARIE P705,000. LAWRENCE knows that on maturity date,
he will not be able to pay MARIE, and in order to prevent attachment of his
property by MARIE, LAWRENCE, before maturity of his debt, executed a contract
pretending to sell to GELLIE her property. Which of the following statements is not
correct?
A. The contract is not valid for lack of consideration.
B. The contract is binding between LAWRENCE and GELLIE.
C. The contract being simulated and executed to defraud Daniel is void.
D. Daniel can seek rescission of the fictitious contract.

39. The conception of a contract is when

A. There is meeting of the minds
B. When negotiations are in progress
C. When the contract is executed
D. When the parties come to an agreement

40. The principle that contracting parties may establish such stipulations, clauses,
terms and conditions as they may deem convenient, provided they are not
contrary to law, moral, public policy and public order, refer to the principle of
A. Liberty of contract C. Consensuality of contract
B. Relatively of contract D. Mutuality of contract

41. Contracts are generally effective only between the parties, their assigns and their
heirs
A. Consensuality of contract C. Mutuality of contact
B. Simplicity of contract D. Relativily of contract

SET A
42. I. Failure to disclose facts, when there is a duty to reveal them constitutes fraud.
II. The usual exaggerations in trade, when the other party has an opportunity to
know the facts, are not in themselves fraudulent
A. True, true B. True, False C. False, true D. False, false

43. A contract with a cause distinct from the selling price is

A. Lesion B. Cession C. Dation D. Option

44. The process of intentionally deceiving others by producing the appearance of a

contract that really does not exist
A. Absolute simulation C. Fraud
B. Relative simulation D. Misrepresentation

45. The process of intentionally deceiving others by producing the appearance of a

contract which is different from the true agreement
A. Absolute simulation C. Fraud
B. Relative simulation D. Misrepresentation

46. The inadequacy of cause, like an insufficient price for a thing sold
A. Lesion B. Cession C. Dation D. Option

47. ANGELO delivered his car to MELODY for the latter’s use for one week without
any compensation. The cause of the contract is
A. The car of ANGELO
B. The generosity of ANGELO
C. The period of one week
D. The delivery of the car

48. ELAINE delivered her bracelet to ASHLEY for ASHLEY’S necklace. No written
agreement was signed by the parties. Which of the following is appropriate
description of the contract between ELAINE and ASHLEY?
A. Onerous and bilateral C. Bilateral and innominated
B. Onerous and innominated D. Aleatory and nominate

49. The following instances will render an offer ineffective before acceptance is
conveyed. Which one will not? When one of the parties
A. Is civilly interdicted
B. Becomes insolvent
C. Become insane
D. Is placed under a hypnotic spell

SET A
50. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the
minds of the parties to a contract, the proper remedy to avoid liability is:
A. Ratify the contract
B. Ask for rescission
C. Annulment of the contract
D. Reformation of the contract

51. A stipulation in favor of a third person

A. Stipulation pour autrui C. Assignment of credit
B. Stipulation pour over D. Pactum commissorium

52. Which of the following constitutes a definite offer

A. An offer made through an agent
B. Advertisement for bidders
C. Business advertisement of things for sale
D. Newspapers advertisements for employment

53. In order that fraud may make a contract voidable:

A. It may be incidental but both parties should not be in parti delicto
B. It may be serious and the parties must be in pari delicto
C. It may be incidental but should have been employed by both parties.
D. It should be serious and should have not have been employed by both
contracting parties.

54. These statements are presented to you:

I. The number of parties to a contract may be more than two.
II. The number of persons composing a party to a contract may be one or
more.

In your evaluation of the foregoing statements:

A. Both statements are true.
B. Both statements are false.
C. Statement I is true; Statement II is false.
D. Statement I is false; Statement II is true.

55. The essential elements of a consensual contract are the following, except:
A. Consent of the contract parties.
B. Object certain which are the subject matter of the contract.
C. Cause of the obligation which must be established.
D. Warranty of the parties that they will perform their respective obligations.

SET A
56. The essential elements of a real contract are the three essential elements
mentioned in the preceding number and the:
A. Execution of a public instrument.
B. Execution of a private instrument.
C. Delivery of the object of the contract.
D. Formalities required by law.

57. Which of the following is a principal contract?

A. Simple loan of money C. Real estate mortgage
B. Guaranty D. Pledge

58. ERWIN borrowed P20,000.00 from MLHUILLIER Pawnshop. To secure the debt,
ERWIN pledged his diamond ring. The pledge of the ring is:
A. A principal contract. C. A preparatory contract.
B. An accessory contract. D. Not a contract at all.

59. These contracts are presented to you:

I. Contract of partnership.
II. Contract of agency.
Which of the foregoing contracts is a preparatory contract?
A. Contract I. C. Contracts I and II.
B. Contract II. D. Neither of the two.

60. A contract where the parties give equal or almost equal values is known as:
A. Commutative contract. C. Aleatory contract.
B. Compensatory contract. D. Equivalent contract.

61. Which of the following is not a bilateral contract?

A. Sale C. Barter
B. Commodatum D. Lease of real property

62. DENCY loaned money for the operations of POWER Enterprises, a company
owned by GABRIEL, which DENCY manages as GABRIEL’S agent. The contract
of loan that DENCY entered into in his own name as lender and representing
GABRIEL as borrower is an example of:
A. Automatic contract. C. Autonomous contract.
B. Auto-contract. D. Contract of adhesion.

SET A
 63. These statements are presented to you:
I. Acceptance by letter or telegram binds the offerer from the time the letter
of acceptance is mailed or sent by the offeree.
II. If the acceptance is by letter or telegram, the contract is presumed to
have been entered into in the place where the offer was made.
In your evaluation of the foregoing statements:
A. Both statements are true. C. Only statement I is true.
B. Both statements are false. D. Only statement II is true.

64. The following contracts are not perfected until the delivery of the object of the
obligations, except
A. Pledge C. Commodatum
B. Deposit D. Sale

65. Pledge, deposit and commodatum are

A. Consensual contracts C. Solemn contracts
B. Real contracts D. Formal contracts

66. A contract to make a deposit, to make a pledge or to make a commodatum is

A. Consensual contracts C. Solemn contracts
B. Real contracts D. Formal contracts

67. Acceptance of an offer made by letter or telegram shall bind the offeror from
the time the
A. Offeree accept the offer
B. Offeree sent his letter or telegram.
C. Acceptance came to the knowledge of the offeror
D. Offeror made the offer

68. When one of the contracting parties is compelled by a reasonable and well-
grounded fear of an imminent and gave evil upon his person or property, or
upon the person or property of his spouse, descendents or ascendants to give
his consent, there is
A. Violence C. Intimidation
B. Mistake D. Undue influence

69. When in order to wrest consent, serious or irresistible force is employed, there
is
A. Violence C. Intimidation
B. Mistake D. Undue influence

SET A
 70. When through insidious words or machinations of one of the contracting
parties, the other is induces to enter into a contract which, without them he
would not have agreed, there is
A. Fraud C. Intimidation
B. Mistake D. Undue influence

71. On February 3, 2020 JULIA offered to lease the agricultural lot of DANIELLA
for P9,000.00 per month. On February 6, 2020 DANIELLA sent his letter of
acceptance which was received by JULIA on February 10, 2020. However,
DANIELLA had become insane on February 8, 2020. The lease contract was
perfected on:
A. February 3, when JULIA offered to lease the agricultural lot from
DANIELLA.
B. February 6, when DANIELLA sent his letter of acceptance.
C. On February 10, when JULIA received the letter of acceptance.
D. No contract was perfected.

72. Aside from violence, the following are the vices of consent, except:
A. Violence
B. Intimidation
C. Undue influence
D. Persuasion

73. MIKE sold 95 pieces of volleyball ball to REA at P95.65 each. The invoice,
however, showed a total price of P9,9086.75 instead of P9,086.75. the
contract of sale in such a case is:
A. Valid because the mistake can be corrected.
B. Rescissible because of the damage of P900.00 suffered by MIKE.
C. Voidable on the ground of the mistake in computation.
D. Void because there was no meeting of minds.

74. The following statements pertain to the cause of a contract. Which statement
refers to motive?
A. It is the essential reason of a contract
B. It is always known to the contracting parties
C. Its illegality does not affect the validity of the contract
D. There will be no contract without it

SET A
 75. Finn offered to sell his watch to Jake for P2,000. Jake offered to buy the
watch for P1, 800 but was rejected by Finn. When Jake turned to go away.
Finn called him and said he is now willing to sell the watch for P1,800. May
Jake refuse to buy said watch?
A. No, because Jake’s offer of P1,800 was accepted by Finn.
B. No, there is a meeting of the minds between the parties or the subject
matter and the cause of the contract.
C. Yes, because Jake made a counter offer which was rejected by Finn.
D. Yes, because the agreement is under the statute of frauds

SET A