Statement 1. Void contracts in certain cases are subject to ratification.

Statement 2. The contract does not become voidable if the violence or intimidation was done by persons not party to the contract.

No. 1 is true; No. 2 is false

No. 1 is false; No. 2 is true

Both are true

Both are false

1. When both parties to the contract are minors, the contract is:

Unenforceable

Rescissible

Voidable

Void

1. D is indebted to C, an insane person, in the amount of P1,000,000. On due date, D paid to C the P1,000,000. As a result, C was able to deposit in the bank P400,000; used P200,000 for a tour of Europe; loaned to X P100,000 which was not paid; invested P200,000 in the stock exchange where he lost 1/2 of his investment and lost P100,000 in the casino. D is still indebted to C the insane or incapacitated person:

P1,000,000 because D made payment to an incapacitated person.

P300,000 since C anyway actually benefited from P400,000 deposited in the bank; P200,000 spent on his European tour, P100,000 from his investment in the stock exchange.

P200,000 because C derived benefit from P400,000 bank deposit; P200,000 European tour; and the P200,000 investment in the stock exchange.

P100,000 because C derived benefit from P400,000 bank deposit; P200,000 European tour; P200,000 investment in stock exchange and P100,000 lost in gambling since in gambling he could have won.