CONTRACTS - MCQS Flashcards by Queenie Rose Mariano

A lost in gambling and as payment executed a promissory note in favor of winner, B. Later, B assigned
the note to C. May C successfully recover from A?

a. Yes, if C is not aware that it is in payment of a gambling debt.
b. No, because B cannot recover, so also cannot the assignee
c. Yes, because B can recover, so also the assignee can.
d. No, because promissory notes can only be negotiated but not assigned.

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A shipped his cargo in B’s vessel. B and C entered into a contract for C to unload the cargo from the ship’s
hold. In the lifting operations, A’s cargo was damaged, which is correct?

a. A may go against C and sue C for damages.
b. A may go against both B & C and sue for damages.
c. A may go against either B or C and sue for damages.
d. A may go against B and sue for damages.

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The bargaining point, that is, when negotiation is in progress.

a. Consummation
b. Conception
c. Perfection
d. Birth

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The meeting of minds regarding the object and cause of the contract

a. Conception
b. Preparation
c. Death
d. Birth

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The point where the parties have performed their respective obligations and the contract is terminated

a. Preparation
b. Conception
c. Perfection
d. Consummation

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A contract where the fulfillment is dependent upon the chance, so the values may vary because of the risk
or chance.

a. Commutative
b. Aleatory
c. Remunerative
d. Gratuitous

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A contract where the cause with respect to each contracting party is the prestation or the promise of a thing
or service by the other is

a. An onerous contract
b. A gratuitous contract
c. An innominate contract
d. An aleatory contract

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A contract where one party receives no valuable consideration and the cause is the liberality of the
benefactor is

a. A gratuitous contract
b. A unilateral contract
c. An onerous contract
d. A commutative contract

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Not a characteristic of contract

a. Consensuality of contract
b. Simplicity of contract
c. Mutuality of contract
d. Relativity of contract

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Contracts are generally effective only between the parties, their assigns and their heirs

a. Consensuality of contract
b. Simplicity of contract
c. Mutuality of contract
d. Relativity of contract

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The contract must bind both contracting parties.

a. Consensuality of contract
b. Simplicity of contract
c. Mutuality of contract
d. Relativity of contract

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A delivered his bracelet to B for B’s necklace. No written agreement was signed by the parties. Which of
the following is appropriate description of the contract between A and B?

a. Onerous and bilateral
b. Onerous and innominate
c. Bilateral and innominate
d. Aleatory and nominate

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A stipulation in favor of a third person

a. Stipulation pour autrui
b. Stipulation pour over
c. Assignment of credit
d. Pactum commissorium

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The following contracts are not perfected until the delivery of the object of the obligations, except

a. Pledge
b. Deposit
c. Commodatum
d. Sale

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Pledge, deposit and commodatum are

a. Consensual contracts
b. Real contracts
c. Solemn contracts
d. Formal contracts

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The conception of a contract is when

a. There is meeting of the minds c. When the contract is executed
b. When negotiations are in progress
c. When the contract is executed
d. When the parties come to an agreement

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The principle that contracting parties may establish such stipulations, clauses, terms and conditions as they
may deem convenient, provided they are not contrary to law, moral, public policy and public order, refer
to the principle of

a. Liberty of contract
b. Relativity of contract
c. Consensuality of contract
d. Mutuality of contract

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Not a requisite of stipulation pour autrui

a. The contracting parties must have clearly and deliberately conferred a favor upon third
person
b. The stipulation must be part of the contract
c. The third person communicated his acceptance to the obligor before it revocation
d. There must be an agency between either of the parties and the third person

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Not a requisite for the validity of a contract

a. Consent
b. Object
c. Cause
d. Delivery

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When there is concurrence of offer and acceptance, there is

a. Payment
b. Consignation
c. Consent
d. Tender of payment

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A delivered his car to B for the latter’s use for one week without any compensation. The cause of the
contract is

a. The car of A
b. The generosity of A
c. The period of one week
d. The delivery of the car

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The following instances will render an offer ineffective before acceptance is conveyed. Which one will
not? When one of the parties

a. Is civilly interdicted
b. Becomes insolvent
c. Becomes insane
d. Is placed under a hypnotic spell

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A, desiring to buy certain property, hired an expert to ascertain its true value. But the expert’s opinion
turned out to be wrong and A was therefore misled. May A ask for annulment of the contract?

a. Yes, because the opinion was made by an expert
b. No, a mere expression of an opinion does not signify fraud
c. No, because A’s own expert committed the error
d. Yes, A had relied on the expert’s special knowledge

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Acceptance of an offer made by letter or telegram shall bind the offeror from the time the

a. Offeree accepted the offer
c. Acceptance came to the knowledge of the offeror
b. Offeree sent his letter or telegram.
d. Offeror made the offer

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When in order to wrest consent, serious or irresistible force is employed, there is a. Violence b. Mistake c. Intimidation d. Fraud

When one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendents or ascendants to give his consent, there is a. Violence b. Mistake c. Intimidation d. Undue influence

When through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them he would not have agreed, there is a. Fraud b. Mistake c. Intimidation d. Undue influence

I. Failure to disclose facts, when there is a duty to reveal them constitutes fraud. II. The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves fraudulent a. True, true b. True, false c. False, true d. False, false

A contract with a cause distinct from the selling price is a. Lesion b. Cession c. Dation d. Option

The inadequacy of cause, like an insufficient price for a thing sold a. Lesion b. Cession c. Dation d. Option

The process of intentionally deceiving others by producing the appearance of a contract that really does not exist a. Absolute simulation b. Relative simulation c. Fraud d. Misrepresentation

The process of intentionally deceiving others by producing the appearance of a contract which is different from the true agreement a. Absolute simulation b. Relative simulation c. Fraud d. Misrepresentation

I. Unless the contrary appears, advertisement for bidders are simply invitations to make proposals, and the advertiser is not bound to accept the lowest or highest bid. II. Contracts agreed to in a state of drunkenness or during a hypnotic spell are void. a. True, true b. True, false c. False, true d. False, false

Which of the following constitutes a definite offer a. An offer made through an agent c b. Business advertisement of things for sale c. Advertisement for bidders d. Newspapers advertisements for employment

The following statements pertain to the cause of a contract. Which statement refers to motive? a. It is the essential reason of a contract b. It is always known to the contracting parties c. Its illegality does not affect the validity of the contract d. There will be no contract without it

A offered to sell her watch to B for P1,000. B offered to buy the watch for P800 but it was rejected by A. When B turned to go away. A called him and said she is now willing to sell the watch for P800. May B refuse to buy said watch? a. No, because B’s offer of P800 was accepted by A. b. No, there is a meeting of the minds between the parties or the subject matter and the cause of the contract. c. Yes, because B made a counter offer which was rejected by A. d. Yes, because the agreement is under the statute of frauds.

. A offered to sell his house and lot to B for P2,000,000, who was interested in buying the same. In his letter, A stated that he was giving B a period of one month within which to raise the amount. One week before the expiration of the one-month period. A told B that he is no longer willing to sell the property unless the price is increased to P3,000,000. May B compel A to accept the 2,000,000 first offered? a. Yes, because this is an obligation with a period and a period is deemed for the benefit of both parties. b. Yes, because the period is deemed for the benefit of B as it was A who voluntarily offered the period to B. c. No, because the promise to sell had no cause or consideration distinct from the selling price d. No, because the increase in the price is 50% and is deemed unconscionable

They refer to the elements that may be stipulated by the contracting parties a. Accidental elements b. Natural elements c. Moral elements d. Artificial elements

They are the elements that are found in certain contracts and are presumed to exist unless set aside by the parties a. Accidental elements b. Natural elements c. Artificial elements d. Incidental elements

In order that fraud may make a contract voidable: a. It may be incidental but both parties should not be in pari delicto b. It may be serious and the parties must be in pari delicto c. It may be incidental but should have been employed by both parties. d. It should be serious and should have not have been employed by both contracting parties.

Contracts entered during hypnotic spell are – a. Valid b. Voidable c. Unenforceable d. Void

Contracts entered by insane person during lucid interval are – a. Valid b. Voidable c. Unenforceable d. Void

A sold his land to B. The sale was made orally. B paid the agreed price. B wanted to have the sale registered but he needs a public instrument. Which is correct? a. B may sue A for the return of his money as no one shall be unjustly enriched at the expense of another b. B cannot demand the return of the purchase price because the sale is unenforceable. c. B may compel A to execute the public instrument because the sale is valid. d. B may only occupy and use the land as buyer in good faith

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, which one of the following is correct? a. The former may ask for reformation b. The latter may ask for reformation c. Either the former or the latter may ask for reformation d. The former may ask for annulment

If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the parties to a contract, the proper remedy is a. Ratify the contract b. Ask for specific performance c. Annulment of the contract d. Reformation of the contract

Where reformation is allowed a. Simple donation inter-vivos wherein no condition is imposed b. Contract of mortgage fraudulently made as a contract of sale c. Wills d. When the real agreement is void

A is indebted to B for P100,000. For the purpose of defrauding B, A sold his only parcel of land to X valued at P 100,000. X has no knowledge of the intention of A. As a result a. The contract between A and X is binding b. The contract is voidable because A acted in bad faith c. The contract between A and X is rescissible d. The right of B is to rescind the contract because it was intended to defraud him.

Contract which can not be ratified a. Rescissible b. Voidable c. Unenforceable d. Void

Contract which has no effect at all a. Rescissible b. Voidable c. Unenforceable d. Void

A contract where both contracting parties are incapable of giving consent is a. Void b. Rescissible c. Unenforceable d. Voidable

An absolutely simulated or fictitious contract is a. Void b. Voidable c. Rescissible d. Unenforceable

A is the guardian of B, a minor. B sold his land in writing to C valued at P1M for P.7M. The sale is a. Rescissible b. Voidable c. Unenforceable d. Void

Although validly agreed upon, courts can nullify this contract because of damage to one of the parties or to a third person and its enforcement may cause injustice by reason of some external facts a. Rescissible contracts c. Unenforceable contract b. Voidable contract d. Void contract

A contract where consent is given through mistake, violence, intimidation, undue influence or fraud is a. Rescissible b. Voidable c. Unenforceable d. Void

A contract in writing for the sale of movable property between a minor and an insane person is a. Void b. Voidable c. Rescissible d. Unenforceable

This will cure the defect of an unenforceable contract a. Acknowledgement b. Confirmation c. Ratification d. Referendum

A law, to aid in human memory, or to prevent injustice due to faulty memory, which requires that certain contracts must be in writing otherwise unenforceable a. Pactum comissorium b. Statute of limitation c. Law on sales d. Statue of frauds

Characteristic of void contracts, except a. Defense of illegality cannot be waived b. Action for declaration of inexistence does not prescribe c. Cannot be ratified d. The inexistence can be assailed by third person

G was appointed as guardian of M, the latter being 17 years old. Later, without authority from G, M sold G’s watch in writing to B valued at P100,000 for P70,000. Suffering lesion by more than ¼ of the value, the contract is a. Rescissible b. Voidable c. Unenforceable d. Void

Unless ratified, suits will not prosper if the contract is a. Rescissible b. Voidable c. Unenforceable d. Void

The following contracts are valid, except a. A contract where a party gave his consent while in a state of drunkenness b. A contract where a party gave his consent because the other party threatened to sue him for an unpaid debt c. A contract where A gave his consent because B threatened to kill A’s spouse d. A contract where the wife sells her property to her husband because of intimidation

One is not a rescissible contract a. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them b. Those which are entered into by guardians wherever the wards whom they represent suffer lesion by more than ¼ of the value of the things which are the object thereof c. Those agreed upon in representation of absentees, if the latter suffer a lesion of more than ¼ of the value of the object of the contract d. Those where one of the parties is incapable of giving consent to a contract

Which of the following need not be in writing to be enforceable? a. An agreement for the sale of goods, chattels, or things in action at a price not less than P500 b. An agreement for the leasing for a period longer than one year, or for the sale of real property or of an interest thereon c. A representation as to the credit of a third person d. A mutual promise to marry

To be enforceable, the following contracts are required to be in writing, except a. A special promise to answer for the debt, default or miscarriage of another b. An agreement that by its terms is not to be performed within a year from the making thereof c. An agreement made in consideration of marriage other than a mutual promise to marry d. A contract of loan

Which of following contracts is voidable? a. Those were both parties are incapable of giving consent to a contract b. Those that do not comply with the Statute of Frauds c. Those entered into in the name of another person by one who has been given no authority or legal representation or who has acted beyond his powers d. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud

Which of the following is enforceable? a. Oral sale of immovable property for a price of P400 b. Oral sale of immovable property for a price of P10,000 c. Oral contract of loan for P1,000 d. Oral agreement made in consideration of marriage

Rescission of contract can take place. 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 the party seeking rescission can perform only as to part and rescind as to another c. When the seller cannot return the installment paid to him by the buyer d. When he who demands rescission can return whatever he may be obliged to restore

Gary was appointed as the guardian of Willy who owns a car valued at one million pesos. Gary sold the car for only 700,000. The sale is – a. Valid b. Rescissible c. Voidable d. Void

Gary was appointed as the guardian of Willy who owns a car valued at one million pesos. Willy sold the car for only 700,000. The sale is – a. Valid b. Rescissible c. Voidable d. Void

Lino entered a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties could not agree which of five lots he owned Lino undertook to sell to Ramon. What is the standing of the contract? a. Unenforceable b. Voidable c. Rescissible d. Void

X, who was abroad, phoned his brother, Y, authorizing him to sell X's parcel of land in Pasay. X sent the title to Y by courier service. Acting for his brother, Y executed a notarized deed of absolute sale of the land to Z after receiving payment. What is the status of the sale? a. Valid b. Void c. Voidable d. Unenforceable

72. Which of the following is unenforceable: a. Those that do not comply with the Statute of Frauds. b. Those where both parties can give consent. c. Those entered in the name of himself. d. All choices are unenforceable.

Sam, a store owner, sold a gallon of rat poison to Ben for P1,000.00. Ben intended to pour the poison in the fishpond of Doray, his enemy, to kill all the fishes therein. The sale of the rat poison is: a. Valid provided Ben does not pursue his motive to kill the fish in the fishpond of Dora. b. Valid even if B pursues his motive to kill the fish in the fishpond of Doray. c. Void as it is immaterial whether or not Ben kills the fish in the fishpond of Doray since Ben's motive is unlawful. d. Void if Ben pursues his motive to kill the fish in the fishpond of Doray.

Which of the following contract is not void ab initio? a. Those whose object are outside the commerce of men. b. Those whose object did not exist at the time of the transaction. c. Those which contemplate an impossible service. d. Those undertaken in fraud of creditors.

CONTRACTS - MCQS Flashcards

(75 cards)