OBLIGAATION AND CONTRACTS

THE COUNTRY LAW IS PHILIPPINES

1. ____________ requires certain contracts enumerated therein to be evidenced by some note or memorandum subscribed by the party charged or by his agent in order to be enforceable.

A. Statute of Frauds

B. Causal Fraud

C. Incidental Fraud

D. Badges of Frauds

2. When a physician who takes improper advantage of his power over the will of his patient in order to get the latter's consent to a contract between the two of them, the contract will:

A. Still valid because the patient is merely returning the favor to his physician who take care of his health

B. Likely to be voidable because of undue influence

C. Be void because of unlawful service

D. Likely be voidable because of intimidation

3. An oral contract of sale of a lot worth P5M between Sunny and Beth. Sunny has not delivered the lot yet but Beth already given the downpayment of P5,000.

A. Void

B. Unenforceable

C. Valid

D. Voidable

4. A written contract of sale entered between Philip and Junior. The object of sale is the right kidney of Philip. Junior had already paid the price amounting to P300,000.

A. Void

B. Unenforceable

C. Voidable

D. Valid

5. A donation of a silver ring worth P4,999.00 made by Colin to Petra. The donation of the ring by Colin and its acceptance by Petra were made orally with Colin simultaneously delivering the ring to C.

A. Voidable

B. Rescissible

C. Unenforceable

D. Valid

6. Colin and its acceptance by Petra were made orally with Colin simultaneously delivering the ring to C.

A. Voidable

B. Valid

C. Rescissible

D. Unenforceable

7. An oral contract of commodatum whereby Marlon, a 17-year old, lent his cellphone o Badong, a twenty-five year old for a week.

A. Rescissible

B. Voidable

C. Unenforceable

D. Valid

8.A contract of pledge is perfected upon the:

A. Delivery to the object of the contract

B. Meeting of the minds of the parties

C. Execution of the written agreement by the parties

D. Acknowledgment by the parties of the instrument evidencing the contract before a notary public

9. It refers to a contract wherein one party imposes a ready-made form of contract, which the other may accept or reject, but which the latter cannot modify.

A. Contract of adhesion

B. Innominate contract

C. Auto-contract

D. Aleatory contract

10. The provision in a promissory note authorizing the creditor to increase, decrease or otherwise change from the time to time the rate of interest and/or bank charges without advance notice to the borrower is violative of which principle of contract?

A. Obligatory force

B. Consensuality

C. Mutuality

D. Relativity

11. Rescission is different from annulment in that rescission:

A. Is bought to declare the inefficacy inherent in the contract

B. Is a principal action

C. May be availed of only by the parties whether bound principally or subsidiarily

D. Is based on lesion or damage

12. Reformation of an instrument is available in the following cases except:

A. Meeting of the minds to the contract

B. True intention is not expressed in the instrument by reason of mistake, accident fraud, etc.

C. Contract must be in public document

D. Strong, clear and convincing proof of mistake, accident fraud, etc.

13. Which of the following contracts needs to be registered?

A. Partnership where immovable property or real rights are contributed to the common fund

B. The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains

C. Sale or transfer of large cattle

D. Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property

14. Rules against pactum commisorium is available in the Civil Code in the following contracts except:

A. Antichresis

B. Pledge

C. Mortgage

D. Partnership

15. 40. Pursuant to this principle, where two interpretations of the same contract language are possible, one interpretation having the effect of rendering the contract meaningless while the other would give effect to the contract as a whole, the latter interpretation must be adopted

a. Principle of effectiveness in contract interpretation

b. Complementary-contracts-construed-together doctrine

c. Reformation principle

d. Verba legis principle

16. Monching, a movie actor, father so many children by different women. He donated a house and lot to Nonong, believing that Nonong was one of his illegitimate child. The deed of the donation and its acceptance were in a public document. Subsequently, a new certificate of title was issued in the name of Nonong. However, months later, through a DNA test, they found out that Monching is not the father of Nonong. Which of the following is a possible outcome for this case?

A. Monching may annul the contract on the ground of mistake as the identity of Nonong.

B. Monching can no longer annul the contract because all the requisites had been complied with and a new title already issued in the name of Nonong.

C. Monching need not annul the contract but he can have it declared void ab initio.

D. Monching can no longer annul the contract but he can rescind it because he suffered damages.

17. Yumi convinced Aki to buy a gold-plated bar which Yumi told Aki was made of pure gold. Aki bought the bar because he indeed believed that it was made of pure gold. The contract between them is:

A. Unenforceable

B. Rescissible

C. Voidable

D. Valid

18. The cause of a contract differs from the motive of each party to the contract in that motive:

A. When illegal will render the contract void

B. Is an essential element of a contract

C. Although illegal, does not affect the validity of the contract

D. Is always known by the other party

19. Tonton, out of his love and affection to Sunshine, donated a parcel of land to the latter who accepted it. The formalities required by law were complied with. The contract between Tonton and Sunshine is:

A. A remuneratory contract

B. A gratuitious contract

C. An onerous contract

D. A lucrative contract

20. Statement 1: A contract where both parties are incapable of giving consent is voidable

Statement 2: A void contract may be ratified

A.Both statements are true.

B.Both statements are false.

C.Only Statement 1 is true.

D.Only Statement 2 is true.

21. Statement 1: Unenforceable contracts cannot be assailed by third persons

Statement 2: the defense of illegality of contracts is not available to third persons whose interests are not directly affected

a. Both statements are true.

b. Both statements are false.

c. Only Statement 1 is true.

d. Only Statement 2 is true.

22. Statement 1: The interpretations of obscure words or stipulations in a contract shall not favor a party who caused the obscurity.

Statement 2: Business advertisements of things for sale are definite offers unless it appears otherwise.

a. Both statements are true.

b. Both statements are false.

c. Only Statement 1 is true.

d. Only Statement 2 is true.

23. Statement 1: Incidental fraud does not render a contract voidable but only obliges the person employing it to pay damages

Statement 2: A relatively simulated contract is void.

a. Both statements are true.

b. Both statements are false.

c. Only Statement 1 is true.

d. Only Statement 2 is true

24. Statement 1: A party who employed violence, intimidation, undue influence, or fraud, or who caused mistake may bring an action to annul the contract on any such ground.

Statement 2: the action or defense for the declaration of the inexistence or nullity of contract does not prescribed.

a. Both statements are true.

b. Both statements are false.

c. Only Statement 1 is true.

d. Only Statement 2 is true

25. Statement 1: A simple mistake in the computation in a contract will render the contract voidable

Statement 2: An action for rescission must be commenced within three years.

a. Both statements are true.

b. Both statements are false.

c. Only Statement 1 is true.

d. Only Statement 2 is true