The following are essential elements of a contract, except:*

• Consent
• Motive
• Subject
• Cause
• None of the above

The point in time when the parties have not yet done finalize the terms of their respective undertakings in their contract:*

• Preparation
• Perfection
• Consummation
• None of the above

The type of contract wherein the existence and validity is dependent upon another contract:*

• Preparatory
• Accessory
• Nominate
• Onerous
• None of the above

The warranty against hidden defects in a contract of sale is an example of:*

• Natural element.
• Accidental element
• Original element
• Stipulated element
• Accessory element

Contracts take effect only between the contracting parties, their assigns and heirs, except in cases where the obligations and rights arising from the contract are not transmissible by their nature, or by stipulation or provision of law. This principle of contract is known as:*

• Relativity of contract.
• Mutuality of contract.
• Obligatory force of contract.
• Adhesion contract
• Liberty of contract.

Timothy donated Php4,999.00 to Yoly's favorite charity because he found Yoly cute. What kind of contract is this?*

• A remuneratory contract.
• An onerous contract.
• A gratuitous contract.
• A contract of adhesion.
• None of the above

An agreement that allows the creditor to increase or decrease the interest rate on the loan at his discretion violates which principle of contracts.*

• Mutuality.
• Obligatory force.
• Autonomy
• Privity

Which of the following is not a requisite for intimidation for a vice of consent?*

• The intimidation must be the determining cause of the contract.
• The threatened act must be accompanied physical force.
• The threatened act must be unjust unlawful
• The threat must be real and serious.
• None of the above

Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. Which of the following constitutes and offer?*

• An definite offer made through an agent
• Business advertisement of this for sale
• Advertisements for bidders
• A declaration of an intent to sell
• All of the above

The following instances will render an offer ineffective before acceptance is conveyed, except:*

• Civil interdiction of either party.
• Insolvency of either party.
• Insanity of either party.
• Intoxication of either party.

Bobby believed that Mary saved his life, and as a consequence, donated Php10,000 to Mary's favorite charity. What kind of contract is this?*

• A remuneratory contract.
• A onerous contract.
• A gratuitous contract.
• A contract of adhesion.

Which of the following expresses a correct principle of law, except?*

• Failure to disclose facts when there is a duty to reveal them, does not constitute fraud.
• Violence or intimidation does not render a contract annullable if employed not by a contracting party but by a third person.
• A threat to enforce one's claim through competent authority, if the claim is legal or just, does not vitiate consent.
• Simulation of a contract always results in a void contract.
• None of the Above

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

• is an essential element of a contract.
• although illegal, does not affect the validity of the contract.
• is always known by the other party.
• when illegal will render the contract void

Sheila wrote a letter to Billy offering to sell a piece land for P500,000. Sheila gave Billy two months decide and pay the purchase price. Before the lapse two months, Seller wrote Buyer that the price is now P700,000. Billy insisted on an acceptance P500,000. He wants to compel Sheila to execute a deed of sale for the original offer of P500,000. May Sheila be compelled to honor the P500,000 offer?*

• No, because Buyer did not accept the original offer.
• Yes, because two months have not elapsed.
• Yes, because Seller is estoppel by his original letter.
• Yes, because there was a meeting of minds

Which among the following must be in writing to be valid?*

• A sale of a land.
• Every donation of personal or movable property
• A contract of partnership with a contribution of an immovable
• An authority by the principal to an agent to sell movables.
• All of the above

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

• when a mutual mistake of the parties causes the failure of the instrument to disclose their agreement.
• when one party was mistaken and the other party acted fraudulently or inequitably in such a way that the instrument does not show their true intention.
• when a party was mistaken and the other knew or believed that the instrument did not state their real agreement.
• when one of the parties has brought an action to enforce the contract.
• None of the above

Which of the following contacts is rescissible?*

• Contracts entered into during a hypnotic spell
• Contracts entered into in a state of drunkenness
• Contracts entered into to defraud creditors when the latter cannot collect the claims due them
• Contracts where both parties are incapable of giving consent

Which among the following contracts is void?*

• A contract of barter between S, insane, and B, 17 years old
• A contract of sale where B, the buyer, twisted the arm of S, the seller, so that S would sign the deed of sale
• A contract of sale where B, the buyer, aimed a gun at the wife of S, so that S would sign the deed of sale
• A contract for the sale of a cow which is suffering from a contagious disease

Charlie gave his diamond-encrusted watch worth Php 25,000.00 to his friend Danny as a birthday gift. Danny readily accepted the gift with profuse gratitude. One month later, they had a serious quarrel; hence, Charlie demanded the return of the watch from Danny. Danny refused to return the watch. What is the nature of this donation?*

• Valid, because there was intention to donate and delivery by the donor Charlie.
• Valid, because there was acceptance and receipt of the donated personal property the donee Danny.
• Void, because the value of the thing donated exceeded Php 5,000.00 and the donation and acceptance were not in writing.
• Void, because the value of the thing donated exceeded Php 5,000.00 and the donation and acceptance were not in a public instrument.

A sale of real property appearing in a private document.*

• Rescissible.
• Not defective.
• Unenforceable.
• Void.

Which of the following contracts is not unenforceable?*

• An oral agreement to pay for the debt, default or miscarriage of another.
• An oral sale of land.
• An oral sale of movables with a value of P500.
• An oral agreement to lend P50,000.
• All of the above

Which of the following contracts is void?*

• An oral sale of a parcel of land.
• A sale of land by an agent in a public instrument where his authority from the principal is oral.
• A donation of a wrist watch worth P4,500.
• A relatively simulated contract.
• All of the above

A verbal agreement for the lease of a condominium unit for 366 days.*

• Rescissible
• Voidable
• Uneforceable
• Void

A written contract for the sale of forest land erroneously titled in the name of the seller.*

• Rescissible.
• Voidable.
• Unenforceable.
• Void

Mr. Gary, without the authority of Mr. Ramon, owner of a car, sold the same car in the name of Mr. Ramon to Mr. Zobel. The contract between Mr. Gary and Mr. Zobel is*

• Void because of the absence of consent from the owner, Mr. Ramon.
• Valid because all of the essential requisites of a contract are present.
• Unenforceable because Mr. Gary had no authority but he sold the car in the name of Mr. Ramon, the owner.
• Rescissible because the contract caused lesion to Mr. Zobel.

Mr. Xavier orally offered to sell his two-hectare rice land to Mr. Charles for P10 million. The offer was orally accepted. By agreement, the land was to be delivered (through execution of a notarized deed of sale) and the price was to be paid exactly one-month from their oral agreement.*

• If Mr. Xavier refuses to deliver the land on the agreed date despite payment by Mr. Charles, the latter may not successfully sue Mr. Xavier because the contract is oral.
• If Mr. Xavier refuses to deliver the land, Mr. Charles may successfully sue for fulfillment of the obligation even if he has not tendered payment of the purchase price.
• The contract between the parties is rescissible.
• The contract between the parties is subject to ratification by the parties.

A verbal contract for the future sale of shares in Meralco to be performed on 16 October 2011 at a fixed price of Php1,000.00 per share which payment has been given by Harry.*

• Not defective.
• Voidable.
• Unenforceable.
• Void
• Rescissble

In an invitational bidding, Jayson proposes the following: "I will buy the van-bus for P690,000 if the bid of any other offerors or bidders shall be considered the best terms of amount and conditions, I am to equal that offer"*

• The offer is speculative, because it cannot be considered as against another offer which is certain.
• The offer is considered a counter offer
• The condition is void because it is potestative to the will of the debtor
• The advertiser is not bound to accept the higher bidder.

The following cannot give consent, except:*

• Minors, except necessaries in life
• Insane person
• Demented person
• Deaf-mute who do not know how to read and write