ABE International Business College

Rockwell Bldg., Brgy. IX, Quezon Avenue, Lucena City

Law on Obligation and Contracts
Mr. Gear G. Arellano II
I. Multiple Choice (Encircle the letter of the correct answer)
1. The elements of a contract without which a contract would not exist.
a. Essential elements
b. Natural Elements
c. Accidental Elements
d. Ordinary Elements
2. The essential elements of a consensual contract are the following, except:
a. consent of the contracting parties.
b. object certain which is the subject matter of the contract.
c. cause of the obligation which must established.
d. warranty of the parties that they will perform their obligations.
3. 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.
4. The essential elements of a formal or solemn contract are the three essential
elements mentioned in No. 2 and the:
a. formalities required by law.
b. delivery of the object of the contract.
c. execution of a public instrument.
d. execution of a private instrument.
5. Which of the following is a solemn contract that is required to be in a public
instrument for its perfection?
a. Contract of partnership where immovable property is contributed.
b. The sale of a building.
c. The mortgage of motor vehicle.
d. The acceptance of an inheritance.
6. If the contract referred to in the preceding number is not a public instrument, such
contract will be considered:
a. unenforceable
b. voidable
c. void
d. rescissible

7. D donated a parcel of land to C. For the contract to be valid:

a. the donation and the acceptance must at least be in a private instrument.
b. the donation and the acceptance must be I a public instrument.
c. the donation and the acceptance may be made orally.
d. the donation and the acceptance may be in any form, i.e., oral or written, and when
written, may be a public or private instrument.
8. Which of the following is not a real contract?
a. Depositum
b. Pledge
c. Commodatum
d. Sale of personal property
9. Which of the following is a principal contract?
a. Simple loan of money
b. Guaranty
c. Real Estate Mortgage
d. Pledge
10. An accessory contract is:
a. a means by which other contracts may be entered into.
b. one whose existence depends upon antoher contract.
c. one that can stand by itself.
d. valid even if the principal contract is void.
11. Dionisio borrowed P 5,000.00 from Cardinal Pawnshop. To secure the debt, Dionisio
pledged his diamond ring. The pledge of the ring is:
a. a principal contract
b. an accessory contract
c. a preparatory contract
d. not a contract at all
12. 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
b. Contract II
c. Contracts I and II
d. Neither of the two
13. A contract where the parties give equal or almost equal values is known as:
a. commutative contract
b. compensatory contract

c. aleatory contract
d. equivalent contract
14. Which of the following is an example of the contract referred to in the preceding
number?
a. Sale
b. Barter
c. Lease of service
d. All of the foregoing
15. These statements are presented to you:
I. An aleatory contract is one whose fulfillment depends upon chance; thus, the values
given vary because of the risks involved.
II. The sale of a sweepstakes ticket is an example of an aleatory contract.
In your evaluation of the foregoing statements:
a. Both statements are true
b. Both statements are false
c. Only Statement I is true
d. Only Statement II is true
16. Which of the following is not a bilateral contract?
a. Sale
b. Commodatum
c. Barter
d. Lease of real property
17. The following are some accidental elements of a contract of sale, except:
a. terms of payment
b. interest rate
c. place of payment
d. warranty against hidden defects
18. Soliman exchanged his demand ring for Baldonados bracelet.
a. The cause with respect to Soliman is Baldonados bracelet.
b. The cause with respect to Baldonado is Solimans diamond ring.
c. Both (a) and (b) are true
d. Neither (a) nor (b) is true
19. C and his family who have just relocated to a new neighborhood, were unloading
their furniture and other personal effects from their truck when D, their neighbor, offered
his help. C gladly accepted Ds offer. After the job was completed, Cgave P500.00 to D.
The contract between D and C is:
a. a remuneratory contract
b. an onerous contract
c. a gratuitous contract

d. some other contract

20. It refers to the money paid by the offeree to the offeror to bind the latter in case the
offeror grants the offeree the privilege to accept an offer within a certain period of time.
a. Earnest money
b. Option money
c. Down Payment
d. Deposit
II. Essay (Answer at least 3 to 5 sentences)
1. Eight years ago, when he was 17 years old, Menora sold his farm lot to Bartolo.
Today, Menora has no other property and has no other means of income. He wants to
recover the farm lot which he believes is enough to sustain him because it has been
producing bumper crops. Can he annul the sale to Bartolo when he was a minor.
2. S, insane, orally sold his radio to B, 17 years old for Php 400.00. When T, the mother
of S learned about the sale, she asked S to give to her the amount that he had received.
S obediently gave the amount of Php 400.00 which his mother used to buy their food.
What is now the status of the contract?
3. S sold to B 50 sticks of marijuana at Php 100.00 each. Upon agreement, S delivered
20 sticks to B who paid therefor the price of Php 2,000.00. After 10 days, B demanded
the delivery of the remaining 30 sticks but S refused on the ground that the contract was
void. Can B deliver the remaining 30 sticks?
4. S and B executed a contract of sale involving ten cartons of Hope cigarettes for Php
1,500 and 50 sticks of marijuana for Php 500.00. B paid S the total amount of Php
2,000.00 upon delivery to him of the Hope cigarettes and the marijuana. What is the
status of the sale?

~GOOD LUCK!!!~