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Homework answers / question archive / Multiple Choice on Contracts 1)Which of the following can be considered as a feature of a void contract? Subject to ratification They exist Action or defense for nullity is subject to prescription None of them
Multiple Choice on Contracts
1)Which of the following can be considered as a feature of a void contract?
Example No. 2: S sold his house valued at 50,000 for only 10,000 because S did not know the true value of the house.
Example no.2 S sold to B orally his specific land. After B paid S the price of the sale, he want to register the land to his name but he needed a public instrument of sale. In here B may compel S to needed public instrument.
14. S and M agreed in print that, debtor for 3,000 will work as a servant of M without pay until she could find money with which to pay him debt. Meantime, S absconded her obligation and failed to comply with her promise. Under this premise, which of the following statements is correct/
a. The agreement to work as a servant is void because it is immoral.
b. The act as a servant without a pay is unconstitutional because this is equivalent to involuntary servitude.
c. The obligation to pay is enforceable because this is in accordance with law.
d. All of the above.
15. In order that a stipulation in favor of a third person in a contract would be valid and binding upon the parties thereto, three of the requisites are mentioned in the following enumeration. Which among them is now a requisite?
a. There must be a stipulation in favor of a third person.
b. The contracting parties must have clearly and deliberately conferred a favor upon a third person.
c. The third person communicated his acceptance to the obligor before its revocation.
d. That there must be an existing agency between either of the contracting parties and the third person.
16. Statement No. 1: Dolo incidente entitles the person against whom it was employed the right to seek the annulment of the contract.
Statement No. 2: A stipulation pour autrui is an exception o the rule on relativity of contracts.
17. Example No. 1: W, 16 year old, sold his house valued at 1M for 50,000 or a lesion by more than one-fourth of the value of the said house.
Example No. 2: S sold his house valued at 1M for only 400,000 because S did not know the true value thereof.
18. S owns an oil painting. Being in need of money, S sold the painting to B for 1,000. After the sale it was discovered that the painting was valuable and worth 5,000.
a. S may rescind the contract on ground of lesion or inadequacy of cause.
b. S may rescind the contract on ground of fraud
c. S may rescind the contract on the ground of error.
d. B is entitled to the benefit of the contract because it is valid and binding.
19. “A”, bachelor lawyer, raped W twice. Upon learning this, “F” the father of W, was able to force to marry W under pain of being sued in court and dibarred from the practice of his law profession. Which statement is correct?
20. Statement No. 1: If the cause is not stated in the contract it is presumed that it is unlawful.
Statement No. 2: The action for rescission is subsidiary, it cannot be instituted except when there is no other legal means to obtain reparation for damages suffered.
21. In an “invitation to bid”, B proposes the following:
22. In the preceding question, which of the following statements is correct?
23. Reluctantly and against her good sense and judgment, Rosemarie entered into a contract for the delivery of 5 tables to Corazon for a price of P15, 000. Contract is:
24. G was appointed guardian of S, the latter being 16 years old. S sold his parcel of land in writing to B valued P100, 000 for P75, 000, suffering lesion by ¼ of the value. What is the status of the contract?
25. One of the stipulations contained in the contract between M Company and its employees is that the company shall pay a bonus to employees of the company who shall continue its employment for at least 2 consecutive years, unless he quits or is discharge before the expiration of the period of 2 years. X, an employee of the company was discharged without just cause, one week before the completion of the two-year period.
26. Statement No. 1: If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the annulment of the instrument.
Statement No. 2: The statement of a false cause in contracts shall render them void, if it should not be proven that they were founded upon another caused which is true and unlawful.
27. Must be in writing to be enforceable:
28. Which of the following is not a requisite for the validity of a contract?
29. D owes C P500. However, C’s right has already prescribed. Notwithstanding the knowledge of this fact, D paid the amount. Realizing this mistake,D wants to recover the amount he paid.
30. Three of the following contracts are void. Which is the exception?
31. X, a former government employee, suffered from severe paranoia and was confined in the mental hospital in 2006. After his release he was placed under the guardianship of his wife to enable him to get his retirement pay. In 2009 he became a mining prospector and sold some mining claims. In 2012, he sues to annul the sale claiming that he was not mentally capacitated at the time of sale. The sale in question was
32. Which of the following is presumed not to be legal subrogation?
33. Essential requisites of a contract:
34. Which of the following instruments is not subject to reformation?
35. Valid until annulled unless there has been ratification
36. In three of the following defective contracts, ratification cleanses the defects, which is the exception?
37. S makes an offer to B on January 1, 2007. B makes known his acceptance in a letter sent on January 2, and received by S on January 10. Meantime, on January 5, S becomes insane.
38. In the preceding number S is perfectly sane but only an unemancipated minor of the time the acceptance is communicated to him.
39. Which of the following contracts is voidable?
40. The stipulation in a contract to the effect that the debtor should remain as a servant in the house and in the service of her creditor so long as she had not paid her debt is void because it is:
41. X, after the death of his father, sold his inheritance though its amount has not yet been determined to B, for a consideration of P50, 000.
42. X, alleged that Y promised to give X one hectare of land. This is in consideration of Y’s meritorious services to X. Y pleads in defense that since the promise was not in writing, it is unenforceable under the Statue of Frauds. Decide.
43. Statement No. 1: In voidable contracts, there is no need to ratify the same before they can be considered valid. In unenforceable contracts, however ratification is mandatory before they can be considered enforceable.
Statement No 2: There is undue influence if insidious words or machinations were employed by a party on the other just to obtain the latter’s consents, without which the latter would not have entered into the contract.
44. Three of the following are void contracts. Which is the exception?
45. Statue of Frauds is applicable to
46. Which of the following is correct?
47. B fraudulently induces s to sell to him (B) a masterpiece painting for 10,000. Subsequently, B sold it to X for 12,000, a good faith purchaser. S is entitled to
a. Rescind the contract with B plus damages.
b. Recover the painting from X but no damages.
c. Recover damages from B
d. Rescind the contract between B and X.
48. Which of the following contracts is not rescissible?
a. Those which are entered into by guardians whenever the wards whom they represent suffer a lesion of more than one fourth of the value of the object of the contract.
b. Those executed in representation of an absentee, if the latter suffer a lesion of more than one fourth of the value of the object of the contract.
c. Those where one of the parties is incapable of giving consent to a contract.
d. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due to them.
e. 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.
49. When there is concurrence of the offer and acceptance, there is:
a. Payment
b. Revocation
c. Consent
d. None of the above
50. Which of the following is voidable?
a. Those where parties are both incapable of giving consent to a contract.
b. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due from them.
c. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.
d. Those whose object is outside the commerce of men.
51. Which of the following contracts is rescissible?
a. Those where one of the parties is incapable of giving consent
b. Those where both parties are incapable of giving consent to a contract
c. Those which are entered into by guardians whenever the wards whom they represent suffer lesion of more than ¼ of the value of the object of the contract.
d. Those which are absolutely simulated or fictitious.
52. By this principle, the validity and efficacy of the contract cannot be left to the will of the contracting parties
a. rescissible
b. voidable
c. unenforceable
d. void
a. parties not bound at all
b. the contract is void
c. the parties conceal their true agreement
d. none of the above
a. Voidable contract
b. void or inexistence contract
c. rescissible contract
d. unenforceable contract
a. when the contract is fully executed
b. when the parties come into agreement
c. when negotiations are in progress.
d. when there is a meeting of the parties’ minds
a. remission is essentially gratuitous
b. cession is a special mode of payments
c. the liability of the guarantor is primary
d. in alternative obligations, the debtor is required to perform only one prestation.
a. X can recover from D 10,000 because the latter was enriched at the expense of X
b. X has no right
c. X cannot recover from D what he pays to C
d. Both D and C are liable to X
Statement No. 2: A contract for the sale of necessaries to a minor is a voidable contract.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
a. Option contract
b. Contract of sale
c. Contract of sell
d. Barter
a. Contract executed by one of the parties in a contract.
b. representation as to the credit of the third person
c. Lease of an immovable for a period longer than one year.
d. Agreement for the sale of an immovable property
a. S may ask for annulment of the contract
b. S may ask for rescission of the contract
c. S may ask C to declare the contract avoided
d. C may ask for annulment of the contract
a. C may ask for the rescission of the contract
b. C may ask for reformation
c. C may ask S to declare the contract avoided
d. C may ask for the annulment of the contract
a. The contract is valid because the cause is always presumed to exist
b. the contract is valid so long as it 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
Statement No. 2: Contracts take effect only between the parties, their assigns and heirs, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law. The heir is not liable beyond the value of the property he received from the decedent.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
Statement No. 2: Misrepresentation made in good faith is not fraudulent but may constitute error and renders the contract voidable.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
a. Contract remains to be valid
b. The contract is rescissible because the contract is fraudulent
c. the contract is void
d. C cannot demand payment from D because the contract is unenforceable
a. The contract is binding from the start
b. The contract remains unenforceable because it falls under the Statute of Frauds
c. The contract is rescissible because the ward suffers lesion by more than ¼ of the value
d. The contract is void
a. Onerous
b. gratuitous
c. Onerous and gratuitous
d. None of them
a. Relativity of the contract
b. Obligatoriness of the contract
c. Mutuality of the contract
d. Freedom of Contract
a. Rescissible contract
b. Voidable contract
c. Unenforceable contract
d. Void contract
a. Natural obligation
b. Moral obligation
c. Civil obligation
d. None of the above
a. The defense of illegality of the contract is available to third persons whose interest are not directly affected
b. They are not subject to ratification
c. the right to raise defense of illegality cannot be waived
d. The action or defense for their declaration of nullity or inexistence of the contract does not prescribed
Statement No. 2: Gross inadequacy of the price does not affect the validity of contracts unless it can be shown that there was fraud, force or violence, error or mistake, undue influence, or threat or intimidation attending the execution thereof.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
a. An offer made through an agent
b. Business advertisement of things for sale
c. Advertisement of bidders
d. All of the above
a. S can ratify he contract
b. S can ratify the sale with the conformity of B
c. B has the right to ask for annulment
d. B has only four years to ask for annulment
a. Oral contract of the partnership the capital is 3,000 or more
b. Contracts in writing contemplating impossible services.
c. Authority of the agent orally made in sale of immovable property
d. Oral contract of partnership whenever immovable property is contributed
a. Valid
b. Rescissible
c. Voidable
d. Unenforceable
e. Void
Statement No. 2: contracts entered into during a lucid interval are valid. Contracts agree to in a state of drunkenness or during a hypnotic spell are binding.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
a. The contract between D and X is binding
b. The contract is voidable because D is in bad faith
c. The right of C is to rescind the contract because the transaction is fraudulent
d. The contract between D and X is rescissible
Statement No. 2: Accidental elements of a contract are those agreed upon by the parties, and cannot exist without being stipulated.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
a. Unenforceable
b. Voidable
c. Rescissible
d. None of them
a. An agreement that by its terms is not to be performed within a year from the making thereof
b. A special promise o answer for the debt, default or miscarriage of another
c. An agreement made in consideration of marriage, other than a mutual promise to marry
d. Sale of goods, chattels or things in action at a price not less than 500.00
e. All of the above
a. Those which object is outside the commerce of men
b. Those which contemplate an impossible service
c. Those where the intention of the parties relative to the principal object of the contract cannot be ascertained.
d. Those expressly prohibited or declared void by law
e. All of the above
a. Death
b. Civil interdiction
c. Insanity
d. Insolvency of either party
e. All of the above
a. Voidable
b. Unenforceable
c. Rescissible
d. None of the above
a. Within three years from the time of fraud
b. Within four years from February 10, 2007
c. Within four years from the time A entered into the contract
d. On February 10, 2007
a. Guaranty
b. Lease of personal property longer than one year
c. Representation as to the credit of a third person
d. Lease of real property longer than one year
a. When the tings which are the object of the contract are legally in the possession of the third person whoa acted in good faith
b. When he who demand rescission can return whatever he may obliged to restore
c. When the party seeking resolution can perform only as to the part and rescind as to remainder
d. When the seller cannot return the installment paid to him by the buyer
a. Implied warranty
b. Payment of interest in a loan
c. Delivery of the object in the contract of pledge
d. All of the above
a. The stipulation is not valid because the party as a rule has no absolute freedom to stipulate terms and conditions in a contract.
b. The stipulation is not valid because this is against public policy
c. the stipulation is valid, only it will create a monopoly in a trade
d. The stipulation if ratified is valid
Statement No. 2: Violence or intimidation shall not annul the obligation; if it was employed by a third person who did not tae part in the contract.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
a. the contract is absolutely simulated
b. the contract is rescissible
c. the contract is merely voidable
d. the contract is void
a. B can compel S to deliver because B is willing to pay the price
b. The contract falls under the Statute of Frauds, therefore unenforceable
c. No Statute of Frauds because the price is less than 500
d. The object is movable, oral contract is enforceable
Statement No. 2: The seller sold to a minor some necessaries in the amount of P600. The goods were delivered to the minor who, in turn paid the purchase price therefore. The contract is unenforceable.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
a. Civil obligation
b. Natural obligation
c. Pure obligation
d. Simple obligatio
a. Unenforceable contract
b. Void contract
c. Voidable
d. All of them
Statement No. 2: One can ask for the annulment of a contract based on dolo incidente
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
a. Policitacion
b. Stipulation por autrui
c. Donation proper nuptias
d. Counter-offer
a. Void
b. Voidable
c. Unenforceable
d. Rescissible
a. The contract is valid because the defamatory matter to be published does not relate to B, the contracting party
b. The contract is voidable because such publication when carried out whether true or not will cause a serious harm to B and his wife
c. The contract is unenforceable but B is entitled to damages the moment the publication is made
d. Contract is void
a. As to C, the contract is rescissible
b. As to B, the contract is voidable
c. Both a and b
d. None of a and b
Statement No. 2: If a valid contract is novated to a void contract, both contracts are considered void.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true
104. Contract with a false cause is
a. Voidable
b. Void
c. Unenforceable
d. All of the above