1.

A meeting of minds between two persons whereby one binds himself with respect
to the other to give something or to render some service is known as:
a. obligation.
b. consent.
c. contract.
d. Stipulation.

2. The stages of a contract according to the order of their occurrence are:

a. birth, conception and consummation.
b. conception, consummation and birth.
c. conception, birth and consummation.
d. consummation, conception and birth.

3. The elements of a contract without which a contract would not exist are known as:
a. accidental elements.
b. natural elements.
c. special elements.
d. essential elements.

4. A consensual contract has the following essential elements:

a. consent of the contracting parties, object certain and cause or consideration.
b. consent of the contracting parties, object certain, cause or
consideration and delivery of the object.
c. consent of the contracting parties, object certain, cause or
consideration and formalities required by law.
d. Consent of the contracting parties, object certain, delivery of the
object, and formalities required by law.

5. A real contract has the following essential elements:

a. consent of the contracting parties, object certain and cause or
consideration.
b. consent of the contracting parties, object certain, cause or consideration and
delivery of the object.
c. consent of the contracting parties, object certain, cause or
consideration and formalities required by law.
d. consent of the contracting parties, object certain, delivery of the
object, and formalities required by law.

6. A solemn or formal contract has the following essential elements:

a. consent of the contracting parties, object certain, and cause or
consideration.
b. consent of the contracting parties, object certain, cause or
consideration and delivery of the object.
c. Consent of the contracting parties, object certain, cause or consideration and
formalities required by law.
d. consent of the contracting parties, object certain, delivery of the
object, and formalities required by law
7. Elements that accompany certain contracts unless set aside or suppressed by the
parties are known as:
a. natural elements.
b. accidental elements.
c. essentials elements.
d. original elements.

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

a. natural element.
b. accidental element.
c. original element.
d. stipulated element.

9. They refer to particular stipulations of the parties in a contract.

a. Accidental elements.
b. Natural elements.
c. Inherent elements.
d. Essential elements.

10. One of the following is a natural element of a sales contract.

a. Terms of payment.
b. Rate of interest.
c. Place of delivery.
d. Warranty against eviction.

11. A contract that can stand by itself is known as:

a. accessory contract.
b. principal contract.
c. commutative contract.
d. Gratuitous contract.

12. A contract that does not have any special name under the law is known as:
a. nominate contract.
b. innominate contract.
c. special contract.
d. nominal contract.

13. A contract where both parties are required to do or give something is known as a:
a. bilateral contract.
b. unilateral contract.
c. gratuitous contract.
d. commutative contract.

14. A contract where the parties contemplate a real fulfilment, hence,

equivalent values are given is known as:
a. commutative contract.
b. gratuitous contract.
c. onerous contract.
d. aleatory contract.
15. The contracting parties may establish such stipulations, clauses, terms
and conditions as they may deem convenient provided they are not contrary
to law, morals, good customs, public order or public policy. This is known as
the principle of:
a. liberty of contract.
b. mutuality contract.
c. relativity of contract.
d. obligatory force of contract.

16. The contract must bind both contracting parties; its validity or compliance cannot
be left to the will of one of them. This is known as the principle of:
a. mutuality of contract.
b. relativity of contract.
c. consensuality of contract.
d. freedom to contract.

17. 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:
a. relativity of contract.
b. mutuality of contract.
c. obligatory force of contract.
d. liberty of contract.

18. D borrowed P500,000.00 from C. D died without having paid his loan
obligation to C. He left S, his son and heir, properties worth P400,000.00.
a. S is liable to C for P500,000.00.
b. S is liable to C for P400,000.00.
c. S is liable to C for P100,000.00.
d. S is not liable at all because he should not be made to shoulder the
obligation of his father.

19. A contract may be enforced by or against a third person, except:

a. in the case of stipulation pour autrui
b. when a third person induces another to violate his contract.
c. in case of contracts intended to defraud creditors.
d. when the benefit to the third person is merely incidental.

20. The principle that contracts are perfected by mere consent is known as:
a. consistency of contract.
b. consensuality of contract.
c. consummation of contract.
d. mutuality of contract.

21. Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith. From perfection, the parties are
bound not only to the fulfilment of what has been his previous acceptance and mailed
his leter of revocation on June 15, 2015expressly stipulated but also to all the
consequences which, according to their nature, may be in keeping with good faith,
usage and law. This is known as the principle of:
a. consummation of contract
b. consenquality of contract
c. obligatory force of contract and compliance in good faith
d. mutuality of contract

22. One of the following is not a real contract.

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

23. D borrowed P100,000.00 from C. The obligation is secured by a mortgage on D’s

land and building. C registered the mortgage with the Register of Deeds. Thereafter,
D sold the land and building to X who was not
personally aware of the existence of the mortgage at the time of sale since only the
photocopy of the transfer certificate of title which did not yet contain the annotation
of the mortgage was shown to him. It was only
when he went to the Register of Deeds to register the sale of the land and building to
him that he learned of the mortgage.
a. C can collect from D and if D cannot pay, C can foreclose the mortgage although
the land and building are now owned by X.
b. C can collect from D, but if D cannot pay, C cannot foreclose the
mortgage because X was not aware of the existence of the mortgage
at the time he bought the land and building.
c. C cannot collect from D. He can only go after the mortgage which has
given as security.
d. C cannot foreclose the mortgage because X was not a party thereto.

24. It is the manifestation of the meeting of the offer and the acceptance upon the
thing and the cause which are to constitute the contract.
a. Consideration
b. Contract
c. Consent
d. Cause

25. On June 1, 2015, S offered to sell his only car to B for P100,000.00. B accepted
the offer by mailing his letter of acceptance on June 10, 2015. On June 12, 2015, B
revoked his previous acceptance and mailed his leter of revocation on June 15, 2015
a. The contract was perfected on June 14, 2015 when S received B’s letter of
acceptance.
b. The contract was not perfected because at the time the acceptance was received, the
parties were no longer of one mind.
c. The contract was perfected on June 10, 2015 when B sent his letter of
acceptance.
d. The perfection of the contract retroacts to June 1, 2015 when the offer
was made
26. On may 1, 2015, S offered to sell a specific car to B for p500,000. B
sent his letter of acceptance to S on May 8, 2015. On may 10, 2015, however, S died
in a vehicular accident and his secretary received the letter of acceptance on May 12,
2015 unaware that S had already died.
a. The contract was perfected on May 8, 2015 when B sent his letter of
acceptance.
b. The contract was perfected on May 12, 2015 on May 12, 2015 when
the secretary of S received the letter of acceptance.
c. The contract was not perfected because the offer of S became ineffective when he
died.
d. The contract was perfected on May 1, 2015because the acceptance
made by H on May 8, 2015 retroacts to the date of the offer.

27. Three of the following instances will render an offer ineffective before acceptance
is conveyed. Which one will not?
a. Civil interdiction of either party
b. Insolvency of either party
c. Insanity of either party
d. Intoxication of either party

28. S offers to sell his car to B for P125,000.00 cash. B accepts the offer
but is willing to pay only P120,000.00.
a. The contract was perfected at the price of P120,000.00
b. The contract was perfected at the price of P125,000.00
c. The contract was perfected at the price of P122,500.00, the average
price of the offer and the acceptance.
d. The contract was not perfected because the acceptance by B was qualified and it
constituted a counter-offer.

29. P appointed A as his agent to sell P’s only Honda Civic car for
P400,000.00 cash. On November 7, 2015, A, pursuant to the authority
granted to him by P, offered to sell the car to B at the price of
P400,000.00. B accepted the offer on November 8, 2015 by sending
aletter of acceptance to A, which letter of acceptance was received by
A on November 9, 2015. On November 10, 2015, A informed P and B
had accepted the offer.
a. The contract was perfected on November 8, 2015 when B sent his
letter of acceptance
b. The contract was perfected on November 9, 2015 when A received
the letter of acceptance.
c. The contract was perfected on November 10, 2015 when A notified
P, the true owner of the car that B had accepted the offer.
d. d. The contract was perfected on November 7, 2015 since the
acceptance by B retroacts to the date of the offer.

30. On July 1, 2015, Serrano offered to sell his only Mercedes Benz car for
P1,000,000.oo to Benitez, Serrano stated that he was giving Benitez up to July 31,
2015 to make up his mind whether to buy the car or not. On July 25, 2015, Serrano
personally went to Benitez to inform him that he was no longer swilling to sell the car
unless the price was increased in buying the car for the said amount of P1,400,000.00.
a. Benitez may compel Serrano to sell to him the car for P1,000,000.00
b. Serrano may validly withdraw his offer to Benitez because the option was not
founded upon a consideration.
c. Serrano may not withdraw his offer until after the lapse of the option
period that he gave to Benitez.
d. The increased in the price made by Serrano was not valid because it
was made within the option period.