CONTRACTS
Voidable
1. By this principle, the validity and efficacy of
the contract cannot be left to the will of one
of the contracting parties.
a. Relativity of contract
b. Obligatoriness of contract
c. Mutuality of contract
d. Freedom of contract
2. This principle means that contracts take
effect only upon the contracting parties, their
assigns or succesors-in-interest
a. Relativity of contract
b. Obligatoriness of contract
c. Mutuality of contract
d. Freedom of contract
3. B forced S to sell him (B) a masterpiece
painting for 1M. Subseuently, B sold it to X
for 2M, 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. Annul the contract plus damages
4. The following contracts should obseve the
Statute of Frauds, except:
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
5. On July 15, 2014, X entered into a contract
with Y. On February 10, 2015, X discovered
that fraud was committed at the time he
entered. Remedy of X is to annul when?
a. Within three years from the time of the
fraud
b. Within four years from February 10,
2015
c. Within four years from the time A
entered into the contract
d. On February 10, 2015
6. Consent is manifestated by the meeting of
the offer and the acceptance upon the thing
and the cause which are to constitute the
contract. Which of the following constitutes a
definite order?
a. An offer made through and agent
b. Business advertisement of things for
sale
c. Advertisement for bidders
d. All of the above
7. An agreement in restraint of trade
a. Perfectly valid
b.
c. Unenforceable
d. Void
8. Rescission of contract can take place in this
case:
a. When the things, which are the object of
the contract, are legally in the
possession of third persons who acted in
good faith
b. When he demands rescission can
return whatever he may be obliged
to restore
c. When the party seeking resolution can
perform only as to part and rescind as to
remainder
d. When the seller cannot return the
installment paid to him bu the buyer
9. Which of the following contracts is required
to be in writing to be enforceable?
a. An agreement that by its terms is not to
be performed within a year from the
making thereof.
b. A special promise to answer for debt,
default or miscarriage of another.
c. An agreement made in consideration of
marriage, other than a mutual promise
to marry.
d. All of the above.
10. S makes an offer to B on January 1, 2014. 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.
a. The contract is voidable because one
party is insane
b. There is already a meeting of minds, the
contract is perfected
c. The contract is not binding because
there is no meeting of minds
d. Contract is unenforceable
11. In a contract, as written, D promises to pay
C P10,000 on September 15, 2014. The
consideration received by D is not stated in
the contract. Decide.
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
12. The storage of “conception” of a contract is:
a. When the contract is fully executed
b. When the parties come to an agreement
c. When negotiations are in progress
d. When there is a meeting of the parties’
minds
13. Which of the following contracts is a. The contract is valid because the
rescissible? defamatory matter to be published does
a. Those where one of the parties is not relate to B, the contracting party
incapable of giving consent to a contract b. The contract is voidable because
b. Those where both parties are incapable such publication when carried out
of giving consent to a contract whether true or not will cause
c. Those which are entered into by serious harm to B and his wife
guardians whenever the wards c. The contract is unenforceable but B is
whom they represent suffer a lesion entitled to damages the moment the
of more than ¼ of the value of the publication is made
object of the contract d. Contract is void.
d. Those which are absolutely simulated of 21. S1: If the cause is not stated in the contract
fictitious it is presumed that it is unlawful.
14. Contracts that cannot be sued upon unless S2: The action for rescission is subsidiary; it
ratified: cannot be instituted except when there is no
a. Voidable other legal means to obtain reparation for
b. Unenforceable damages suffered.
c. Rescissible a. Both are true
d. Void b. Both are false
15. Contract that is made for a valuable c. 1 is true; 2 is false
consideration is: d. 1 is false; 2 is true
a. Onerous 22. Because of the intimidation employed by X,
b. Gratuitous a third person, S sold his car to B. This
c. Onerous and gratuitous contract is:
d. Aleatory a. Void
16. Who is liable for the loss of subject matter by b. Voidable
fortuitous event? c. Unenforceable
a. Creditor d. Rescissible
b. Debtor 23. B called C by the telephone to guaranty the
c. Both creditor and debtor debt of D to C. The contract between B and
d. None of them C is:
17. These persons are bound by contracts: a. Unenforceable
a. Contracting parties b. Voidable
b. Assigns or assign c. Rescissible
c. Heirs d. Annullable
d. All of them 24. An obligation which cannot be enforced by
18. L entered into a contract of lease with X. T, court action, but which is binding on the
the clerk of L, typed the document. Due to party who makes it in conscience and
T’s negligence, the document made was that according to natural justice is called
of sale instead of lease. a. Civil obligation
a. The remedy is annulment b. Natural obligation
b. Parties may go to court for interpretation c. Pure obligation
c. Parties may enforce their right because d. Simple obligation
it is enforceable 25. Contract which has no effect at all and cannot
d. Remedy is reformation be ratified is a/an
19. Which of the following can be considered as a. Unenforceable
feature of the void contract? b. Void contract
a. Subject to ratification c. Voidable
b. They exist d. All of them
c. Action or defense for nullity is subject to 26. Statute of fraud is applicable to
prescription a. Partially executed
d. It is imprescriptible as a defense b. Oral contract of loan when the amount
20. S entered into a contract with B by involved is less than P500
threatening B that if B does not agree to c. Contract not to be performed within
make the contract, S would publish a year from the making thereof
defamatory matter concerning B’s wife. d. All of the above
27. An incidental element of a contract
a. Implied warranty
 b. Payment of interest in a loan
c. Delivery of the object in contract of
pledge
d. All of the above
28. In three of the following defective contracts,
ratification cleanses the defects. Which is the
exception?
a. Both parties are incapable of giving
consent
b. Sale of immovable property or interest
orally entered into
c. Sale of piece of land thru an agent
the authority is oral
d. Contracts entered into by a person who
has been given no authority
29. Valid until annulled unless there has been
ratified
a. Rescissible contract
b. Inexistence contract
c. Voidable contract
d. None of the above
30. S was forced by X to sign a contract with B
for the sale of specific property for 10,000. C
a creditor of X is prejudiced by the contract.
What can s do?
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 the annulment of the
contract
31. In the preceding number, what can C do?
a. C may ask for rescission of the
contract
b. C may ask for the reformation
c. C may ask S to declare the contract
voided
d. C may ask for the annulment of the
contract
32. Which of the following contract is voidable
a. Those where both parties are 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 to 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
33. S and B agrree that S would sell and B would
buy S’s radio for P400, to years from the date
of the agreement. At the end of the two-year
period, S refused to deliver the radio
although B was willing to pay.
a. B can compel 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 P500
d. No obkect is movable, oral contract is
enforceable
34. This kind of defective contract refers to that
contract which is validly agreed upon
because all the essential elements exists, but
courts nullify it when there is damage or
prejudice to one of the parties or to a third
person. Its enforcement would cause
injustice by reason of some external facts.
a. Voidable contract
b. Void or inexistence contract
c. Rescissible contract
d. Unenforceable contract
35. Must be in writing to be enforceable
a. Lease of land for 12 months
b. Lease of car for 18 months
c. Both a and b
d. None of a and b
36. A contract entered into in violation of right of
first refusal is:
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
37. Type of defective contract that creates no
rights and impose no obligation, but are
susceptible of ratification.
a. Voidable contracts
b. Unenforceable contracts
c. Rescissible contracts
d. Void contracts
38. D forced C to lend him P10,000. The
promissory note is in writing.
a. The contract is rescissible because the
contract is fraudulent
b. The contract is void
c. C cannot demand payment from D
because the contract is unenforceable
d. Contract remains to be valid
39. Which of the following contract is not valid?
a. Mutual promise to marry entered into
orally
b. Sale of immovable property orally
entered into
c. One of the parties in a contract is
incapable of giving consent
d. Sale of immovable property thru an
agent
40. Three of the following are void contracts.
Which is the exception?
a. Contracts where the cause is immoral
b. Contracts to prevent a known supporter
of a political rival from voting for his
candidate for a valuable consideration
 c. Contracts with a valid consideration 49. S1. Place and modes of payment are
but with unlawful motives example of natural elements
d. Absolutely silmulated contracts S2. Agency, partnership and sale are
41. Contract with a false cause is example of preparatory and consensual
a. Voidable contracts
b. Void a. Both are true
c. Unenforceable b. Both are false
d. All of the above c. 1 is true; 2 is false
42. A conferment of a direct benefit in a contract d. 1 is false; 2 is true
between two persons in a favor of a third 50. All are void contracts except:
person who must accept such benefit before a. Those whose object is outside the
the same is withdrawn is known as: commerce of men
a. Politicitacion b. Those which are relatively
b. Stipulation por autrui simulated of fictitious
c. Donation propter nuptias c. Those with unlawful consideration
d. Counter-offer d. Those which contemplate an impossible
43. The guardian of an insane person sells a service
house and a lot belonging to the latter valued
at P100,000 to B, buyer for P74,000 with the
approval of the court. The contract is:
a. Valid
b. Rescissible
c. Voidable
d. Unenforceable
44. Which of the following contract is enforceable
even if not reduced in writing
a. Lease of car for 2 years
b. Representation as to the credit of a third
person
c. Lease of immovable for a period longer
than one year
d. Agreement for the sale of immovable
property
45. Simulation of contract – absolute or relative.
Relative when:
a. Parties not bound at all
b. The contract is void
c. The parties conceal their true
agreement
d. None of the above
46. Essential requisites of a contract:
a. Consent
b. Cause
c. Subject
d. All of them
47. The offeror need not know the acceptance by
the offeree is the theory of:
a. Cognition
b. Manifestation
c. Expidition
d. B or C
48. Which of the following instruments is not
subject to reformation?
a. Simple donations inter vivos wherein no
condition imposed
b. Wills
c. When the real agreement is void
d. All of the above