Encircle the number of the false statements

1. the contracting parties may establish such stipulation, clauses,terms and condition as they may deem convenient,
provided they are not contrary to law, morals, good customs, public order, or public policy.

2. Contracts must bind both contracting parties; their validity or compliance cannot be left to the will of one of them.

3. Consent is the manifestation of the meeting of the offer and the acceptance upon the thing and the cause of the
contract.

4. Acceptance made by letter or telegram does not bind the offeror except from the it came to his knowledge.

5. Contracts agreed to in a state of drunkenness or during a hypnotic spell are valid.

6. Dolo causante shall make a contract voidable.

7. Dolo incidente only obliges the person employing it to pay damages.

8. The statement of a false cause in contract shall render them void, if it should not be provided that they were
founded upon another cause which is true and lawful.

9. Annulment is available only to persons who are obliged principally or subsidiarily. It is not available to third
persons.

10. Persons who are capable cannot allege the incapacity of those with whom they are contracted.

11. The action for rescission is subsidiary; it cannot be instituted except when there is no other legal means to obtain
reparation for damages suffered.

12. Void contracts cannot be ratified. Neither can the right to set up the defense of illegality be waived.

13. Contracts take effect only between the contracting parties.

14. Consensual contracts are not perfected until the delivery of the object of the obligation.

15. Real contracts are perfected by mere consent.

16. An offer becomes ineffective upon the death,civil interdiction, insanity, or insolvency of either party before
acceptance is conveyed.

17. When the offeror has has allowed the offeree a certain period to accept, the offer may be withdraw at any time
before acceptance, except when the option is founded upon a consideration, as something paid for promised.

18. Unless it appears otherwise, business advertisements of things for sale are not definite offers, but mere invatations
to make an offer.

19. Contracts entered into during a lucid interval are voidable.

20. There is intimidation when in oder to wrest consent, serious or irresistable force is employed.

21. Misrepresentation made in good faith is not fraudulent but may constitute error.

22. Cause is the essential or more proximate purpose which the parties have in view in entering into the contract.

23. Contracts shall be obligatory,in whatever form they may have been entered into, provided all the essential
requisites for their validity are present.
24. When,there having been a meeting of the minds of the parties to a contract, their true intention is not expressed by
reason of mistake, fraud, inequitable conduct or accident,one of the parties may ask for the reformation of the
instrument.

25. If mistake, fraud, inequitable conduct, or accident has prevented a meeting or the minds of the parties, the proper
remedy is not reformation of the instrument but annument of the contract.

26. The action or defense for the declaration of the inexistence of void contract does not prescribe.

27. Voidable contracts cannot be ratified.

28. A contract which is the direct result of a previous illegal contract, is also void and inexistent.

29. An offer becomes effective even with the death of either party after acceptance is conveyed.

30. Obligations and contract are identical.

31. The object of a contract of sale is its subject matter.

32. If valid contract is novated to a void contract, both contracts are considered void.

33. Without contract, a person cannot be liable to another.

34. Consummation of a contract is manifested by the offer and acceptance.

35. Delivery of the subject matter is necessary to the perfection of the contract of sales.

36. X advertised his lot for sale in a newspaper of general circulation. The advertisement states: “For sale.500 sq.m.
located at 69 Perea Street, Makati City. Price :P500,000.00. Term of payment; Cash only ”. W accepted the offer by
sending a letter to X which the latter received. X can still back out from his offer because his advertisement is merely
an invitation to make an offer.

37. By provision of the law on contracts,where the amount involved in the contract exceeds P500.00, it must appear in
writting or in public instrument. A contracted loan of P5,000.00 from B which is not reduced in public instrument or
writting. B cannot recover the loan because the contrac is valid.

38. In the case of an illegal contract where there is a criminal offense, the parties cannot be prosecuted if they are both
in pari-delicto.