ReSA: The Review School of Accountancy

41. A and B, neighbors, orally agredd that from that day, B woutd not erect a garage on his propefi
till after three years. A week later, B begun to erect a garage in violation of the agreement. A
complains and B sets up the defense of the contract being unenforceable. Decide.
[, a. The contract is unenforceable because it is not to be performed within one year from the
making thermf, and it is oral.
b. B can be compelled to demolish the fence because he failed in his obligation not to do.
c. A can have a third person to undo what has been done by B in violation of his obligation
not to do.
d. A has the right to complain and enforce the contract because it is enforceable.

{^r
42. A and B orally agreed that A would sell and B would buy A's radio for p200.00 three years from
f- the date of the agreement. At the end of the three years, A refused to hand over the radio
although B was willing to pay. Is A bound to deliver the radio sold?
a. A is obliged to deliver what he sold since it was an enforceable sale.
b. A is obliged b deliver if B is ready to pay the price.
c. A is not bound to deliver because the sale is unenforceable.
d. A is not bound because the sale is void.
\ 43. A forced B to sell to him (A) his ring. B sued for annulment, but A had already lost the ring thru
;\ fortuitous event. Is A liable for the loss?
i a. A is liable for the loss even it was due to fortuitous event because of his bad faith.
I b. A is not liable because the loss was without his fault.
c. A is liable to pay damage if he cannot replace the ring.
d. A is not liable because no one shall be responsible for the loss of a thing due to fortuitous
event"

n 44. A was forced by B to sign a contract. C, a creditor of A wants to annul the contract. Is C allowed
\-- by law to do so?
a. No, because a third person cannot assail a void contract.
b. Yes, because the contract is voidable and C is darnaged.
c. No, because a third pe6on cannot assail a voidable contract.
d. Yes, a third person can annul a rescissible contract.
I\
V 45.To defraud his creditors, A sold his real property to B. B now seeks to regisier the sale. X, a
creditor, seeks to preve€uhe .egistratroo on the.ground that it is a rescissible contract. Despite
X's objection may the land be registered in B's name?
a. No, because the contract is rescissible and therefore without effect.
b. No, because the sale is voidable and after annulment is not binding.
c. Yes, because the contract although voidable is valid and binding.
d. Yes, because the contrac[ although rescissible is valid, binding and enforceable before
rescission.

ir 46. A made a donation to B. Later A contracted severaldebts. What A has left as assets are much less
than his present liabilities. May the donatjon to B be rescinded7
a. No, because the debts were incurred after the donation has been made.
b. No, if A gave guaranty or security for his debts.
c. Yes, because the donation is rescissible being in fraud of creditors.
d. Yes, because A has become insolvent after the donation.

Yj 47.To defraud his creditor, A sold his property to B (who is in good faith). Later B sold the property to
C, who is in bad faith. May the creditor rescind the sale?
a. Yes, because the third person C, is in bad faith.
b. No, because the third person B is in good faith.
c. No, because the contract is voidable and not rescissible.
d. Yes, because the contract is rescissible.

UA+A.To defraud his creditor, A sold his house to X. When however the creditor wanted to collect his
V credit, somebody lent A enough money. Is the sale rescissible?
a. Yes, because it was entered into fraud of creditors.
b. No, because the creditor can collect the credit due to him.
c. No, because the debtor has become in good faith when he was lent enough money to pay
his debts.
d. Yes, because the debtor was in bad faith when he sold his house to X.

(\ 49. A orally sold to B a house at.16 Kiko St. Malate, Manila. In the written deed of sale, both forgot
\--l the true number of the house and instead wrote on the contract "No. 18 Kiko St. Malate, Manila.