1. S orally sold to B his house and lot for P5,000,000 where B initially paid P50,000. After paying the balance B now seeks to register the lot in his name, but the Register of Deeds refuses to do so. In this case a. The transaction involving the oral sale of a house and lot is null and void. b. The contract between S and B is unenforceable under the Statute of Fraud. C. The oral sale of the house and lot although unenforceable under the Statute of Fraud has been ratified by the receipt of the consideration and, therefore, B can compel S to execute the deed of sale in a public document. d. If S does not want to execute the public document, he can rescind or cancel his agreement with B. 2. The following are rescissioncontracts, except: a. Entered into by guardian whenever ward suffers damage by more than $4 of value of property. b. Agreed upon in representation of absentees, if absentee suffers lesion by more than V of value of property. C. Contracts where fraud is committed on creditor (accionpauliana). d. Contracts entered into by minors. 3. Valentina orally promised to marry Pedro as consequence of which the latter contracted the Manila Cathedral as the venue of the marriage, the whole of the Fiesta Pavilion of the Manila Hotel, the bridal gown to be made by Pitoy Moreno, spending all in all about P1,000,000. On the date of the marriage, Valentina did not appear: a. Pedro can legally compel Valentina to marry him. b. Pedro cannot compel Valentina to pay damages because the mutual promise to marry was oral. C. While Pedro cannot compel Valentina to marry him, he can collect from Valentina damages. d. Pedro can neither collect damages from Valentina nor compel her to marry him. 4. The mortgagor will execute an instrument to transfer the ownership over the property mortgaged to the mortgagee if the debt is not paid at maturity is a. Void b. Voidable c. Valid d. Unenforceable 5. Sisa defrauded Booba in making the latter believe that the ring he is selling is gold and diamond when in fact, it is copper and glass. On the other hand, Booba defrauded Sisa in paying him P200,000 in fake Philippine currency. Which of these statements is correct? a. Sisa can go to court for the annulment of the contract so that the ring will be returned to him. b. Booba can go to court so that his fake money will be restored to him. c. Neither Sisa nor Booba can go to court since they are both guilty of fraud. 6. A is the guardian of B, a minor. B sold his land in writing to C valued at P1,000,000 for P650,000. The sale is a. Rescission b. Voidable c. Unenforceable d. Void 7. 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 8. 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. 9. S makes an offer to B on January 1, 2007. B makes known his acceptance in a letter sent on January 2, and received by S on January 10. Meantime, on January 5, S become 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. Answer not given. 10. Which of the following can be considered as a feature of a void contract? a. subject to ratification b. it exists c. action or defense of nullity is subject to prescription d. novation cannot apply 11. L entered into a contract of mortgage with X. T, the clerk of L typed the document. Due to T's negligence, the document made was that of sale instead of mortgage. . The remedy is annulment.b. Parties may go to court for interpretation. Parties may enforce their right because it is enforceable. d. Reformation of instrument is proper. 12. S offers to sell his house to B for P100,000. B asks him if he would accept P80,000. Which of the following is correct? a. Because of ambiguity, both offers are terminated by operation of law. b. B's response is a counter-offer effectively terminating the P100,000 offer and instigating an offer for P80,000. C. B's response is a rejection of the P100,000 offer, and there is no offer for P80,000 because it is too indefinite to be an offer. d. B's response is a mere inquiry, theP100,000 offer by S is still there. 13. B company bought out a competitor, C Corporation, with a stipulation that C Corporation should not thereafter engage in any business in the Philippines unless consented to and approved by B Company. a. The stipulation is defective subject to ratification. b. The stipulation is valid because the parties are free to enter into any stipulation, terms and conditions such as this one. C. The stipulation is unenforceable as there was no showing that the sale was done in writing. d. The stipulation is void because it is contrary to public policy. 14. Which of the following 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. The stipulation is void because it is contrary to public policy. 15. D forced C to execute a promissory note a. Contract is rescission because the contract is fraudulent. b. The contract is void. C cannot demand payment from D because the contract is unenforceable. d. Contract remains to be valid. 16. Example no 1: S sold to B in a private instrument his land. Later, B wanted to have the sale registered but registration requires a public instrument. In here, B may compel S to execute the needed public instrument. Example no. 2: S sold to B orally his land. After B paid, he wants to register the land in his name but he needed a public instrument of sale. In here, B may compel S to execute the needed public instrument. a. Both examples are false. c. Only the second is true. b. Only the first is true. d. Both examples are true. 17. An agreement in restraint of trade or establishing monopoly is: a. perfectly valid b. voidable c. unenforceable d. void 18. Three of the following are rescissionich is not? a. Sale of property under litigation made by defendant without the consent of plaintiff or authority of the court. b. Those made to defraud creditors when the latter have no other means to recover their claims. c. Those agreed upon in representation of absentees, if the absentee suffers lesion by more than 14 of the value of the property subject of the contract. d. Contract of sale and the price is unusually inadequate resulting to lesion. 19. A and B married but legally separated entered into a contract of sale involving A's condominium unit for a price of P4,000,000. The sale was embodied in a public instrument and lady paid the price using her exclusive money. What is the status of the contract? a. Valid b. Voidable C. Void d. Unenforceable 20. M, a minor owns a specific ring valued at P100,000. G, the guardian of M, by means of fraud induced B, a minor to buy the ring for P70,000, which did so and G effected delivery to B. The contract is not in writing. Which is correct? a. The contract is unenforceable because M and B are both incapacitated to give consent. b. The contract is rescissionbecause M suffered a lesion of more than \\ of the value of the ring, C. The contract is voidable but G cannot ask for annulment of the contract. d. The contract is voidable but B can only ask for annulment within 4 years from discovery of the fraud