Manila * Cavite * Laguna * Cebu * Cagayan De Oro * Davao

Since 1977

RFBT.3202 VILLEGAS/AGUILAR
Contracts MAY 2022

QUESTIONS
1. The validity and efficacy of the contract cannot be left
10. An incidental element of a contract
to the will of one of the contracting parties.
a. Implied warranty
a. Relativity of contract
b. Payment of interest in a loan
b. Mutuality of contract
c. Delivery of the object in contract of pledge
c. Obligatoriness of contract
d. All of the above
d. Freedom of contract
11. A threat to enforce one’s claim through competent
2. This principle means that contracts take effect only
authority, if the claim is just or legal does not vitiate
upon the contracting parties, their assigns or
consent.
successors-in-interest
Contracts entered into during a lucid interval are valid.
a. Relativity of contract
Contracts agreed into a state of drunkenness or during
b. Mutuality of contract
a hypnotic spell are binding.
c. Obligatoriness of contract
a. Both are true
d. Freedom of contract b. Both are false
c. No.1 is true; No. 2 is false
3. Consent is manifested by the meeting of the offer and
d. No.1 is false; No. 2 is true
the acceptance upon the thing and the cause which
are to constitute the contract. Which of the following 12. Which of the following contract is not valid?
constitutes a definite offer? a. Mutual promise to marry entered into orally
a. An offer made through an agent
b. Sale of immovable property orally entered into
b. Business advertisement of things for sale
c. One of the parties in a contract is incapable of
c. Advertisement for bidders
giving consent
d. All of the above d. Sale of immovable property thru an agent
4. An agreement in restraint of trade.
13. A conferment of a direct benefit in a contract between
a. Perfectly valid
two persons in favor of a third person who must accept
b. Voidable
such benefit before the same is withdrawn is known
c. Unenforceable
as:
d. Void a. Policitacion
b. Stipulation por autrui
5. Contract that is made for a valuable consideration is:
c. Donation propter nuptias
a. Onerous
d. Counter-offer
b. Gratuitous
c. Onerous and Gratuitous
14. The offeror need not know the acceptance by the
d. Aleatory
offeree is the theory of:
a. Cognition
6. The stage of “conception” of a contract is: b. Manifestation
a. When the contract is fully executed
c. Expedition
b. When the parties come to an agreement
d. B or C
c. When negotiations are in progress
d. When there is a meeting of the parties’ minds.
15. Statement No.1: Dolo incidente entitled the person
against whom it was employed the right to seek the
7. These persons are bound by contracts:
annulment of the contract.
a. Contracting parties
Statement No.2: Innominate contracts are exclusively
b. Assigns or Assign
regulated by the stipulations of the parties.
c. Heirs a. Both are true
d. All of them
b. Both are false
c. No.1 is true; No. 2 is false
8. Acceptance of an offer made by letter or telegram shall
d. No.1 is false; No. 2 is true
bind the offeror:
a. From the time the offeree has knowledge of the
16. Which of the following instruments is not subject to
offer.
reformation?
b. From the time the offeree sent his acceptance.
a. Simple donations inter vivos wherein no condition
c. From the time the acceptance is communicated.
imposed
d. From the time the offeror made the offer. b. Wills
c. When the real agreement is void
9. Essential requisites of a contract:
d. All of the above
a. Consent
b. Cause
17. The following contracts should observe the Statute of
c. Subject
Frauds, except:
d. All of them
a. Guaranty
b. Lease of personal property longer than one year
c. Representation as to the credit of a third person
d. Lease of personal property for one year
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18. Which of the following contracts is required to be in c. Unenforceable

writing to be enforceable? d. Void
a. An agreement that by its terms is not to be
performed within a year from the making thereof.
b. A special promise to answer for the debt, default
or miscarriage of another.
c. An agreement made in consideration of marriage,
other than a mutual promise to marry.
d. All of the above.

19. Contracts that cannot be sued upon unless ratified:

a. Voidable
b. Unenforceable
c. Rescissible
d. Void

20. Which of the following can be considered as feature of

the void contract?
a. Subject to ratification
b. They exist
c. Action or defense for nullity is subject to
prescription
d. It is imprescriptible as a defense

21. In three of the following defective contracts,

ratification cleanses the defects. Which is the
exception?
a. Both parties are incapable of giving consent
b. Sale of immovable property or interest orally
entered into
c. Sale of piece of land thru an agent the authority is
oral
d. Contracts entered into by a person who has been
given no authority
22. Valid until annulled unless there has been ratification
a. Rescissible contract
b. Inexistence contract
c. Voidable contract
d. None of the above

23. Because of the intimidation employed by X, a third

person, S sold his car to B. This contract is:
a. Void
b. Voidable
c. Unenforceable
d. Rescissible
24. B called C by the telephone to guaranty the debt of D
to
C. The contract between B and C is:
a. Unenforceable
b. Voidable
c. Rescissible
d. Annullable

25. This kind of defective contract refers to that contract

which is validly agreed upon because all the essential
elements exits, but courts can nullify it when there is
damage or prejudice to one of the parties or to a third
person. Its enforcement would cause injustice by
reason of some external facts.
a. Voidable contract
b. Void or Inexistence Contract
c. Rescissible Contract
d. Unenforceable Contract

26. P, who was in Hongkong, made an overseas call to A,

his friend, to sell P’s lot in Quezon City immediately as
P needed cash. Accordingly, A sold the lot to B. The
deed of sale is in a public document. The sale of P’s lot
is:
a. Valid
b. Rescissible

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27. All are incorrect about contracts except one
a. Voidable contracts are also called
validable contracts
b. Stipulation pour autrui is an exception to
mutuality of contracts
c. Fraud in inducement is a ground to nullify a
contract
d. Void contracts are unenforceable but not vice versa

28. The following, except one, are the characteristics of

void or inexistent contact. What is the exception?
a. They are not subject to ratification.
b. The right to raise defense of illegality cannot be
waived.
c. The defense of illegality of the contract is
available to third persons whose interest is not
directly affected.
d. The action or defense for declaration of the
nullity or inexistence of the contract does not
prescribed.

29. Mistake in three of the following will not make a

contract voidable. Which one will not?
a. Mistake as to the substance of the thing which is
the object of the contract.
b. Mistake as to the principal conditions which
principally moved one or both parties to enter
into the contract.
c. Mistake as to the identity or qualifications of one
of the parties, which identity or qualifications
have been the principal cause of the contract.
d. Simple mistake of account.

30. Statute of Frauds is applicable to

a. Partially executed contract
b. Oral contract of loan when the amount involved
is less than P500
c. Contract not to be performed within a year from
the making thereof
d. All of the above.

31. When bilateral contracts are vitiated with vices of

consent, they are rendered
a. rescissible.
b. void.
c. unenforceable.
d. voidable

32. Lino entered into a contract to sell with Ramon,

undertaking to convey to the latter one of the five
lots he owns, without specifying which lot it was, for
the price of P1 million. Later, the parties could not
agree which of five lots he owned Lino undertook to
sell to Ramon. What is the standing of the contract?
a. Unenforceable.
b. Voidable.
c. Rescissible.
d. Void.

33. One of the following statements concerning

ratification of a voidable contract is false. Which is
it?
a. Ratification extinguishes the action to annual a
voidable contract.
b. Ratification cleanses the contract from all its
defects from the moment it was constituted.
c. Ratification requires the conformity of the party
who has no right to bring the action for
annulment.
d. Ratification may be made by the guardian of the
incapacitated person, or the incapacitated
person upon attaining capacity, or the party
whose consent was vitiated.

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34. The following agreements are covered by the Statute

42. A stipulation in a contract of lease, which provides that
of Fraud. Which is not?
the tenant shall have the right to continue in
a. An oral agreement which by its terms is not to be
possession of the leased premises so long as he pays
performed within one year from the making
monthly rentals thereon, is a valid stipulation.
thereof.
b. An oral special promise to answer for the debt, The seller sold to a minor some necessaries in the
default or miscarriage of another. amount of P600. The goods were delivered to the
c. An oral agreement in consideration of marriage. minor who, in turn paid the purchase price therefore.
d. An oral contract of partnership where the The contract is unenforceable.
contribution in money or personal property a. Both are true c. No.1 is true; No. 2 is false
amounts to P3,000 or more. b. Both are false d. No.1 is false; No. 2 is true
35. S owns an oil painting. Being in need of money, S sold 43. S and B orally agree that S would sell and B wound
the painting to B for P1, 000. After the sale it was buy S’s radio for P400, two years from the date of the
discovered that the painting was valuable and worth agreement. At the end of the two-year period, S
P5, 000. refused to deliver the radio although B was willing to
a. S may rescind the contract on ground of lesion or pay.
inadequacy of cause a. B can compel S to deliver because B is willing to
b. S may rescind the contract on ground of fraud pay the price.
c. S may annul the contract on the ground of error b. The contract falls under the Statue of Frauds,
d. B is entitled to the benefit of the contract therefore unenforceable.
because it is valid and binding c. No Statue of Frauds because the price is less
than P500.
36. Contract which has no effect at all and cannot be
d. The object is movable, oral contract is
ratified is a/an:
enforceable.
a. Unenforceable c. Voidable
b. Void contract d. All of them 44. This kind of defective contract refers to that contract
which is validly agreed upon because all the essential
37. S sold to B in private instrument his land. Later, B elements exits, but courts can nullify it when there is
wanted to have the sale registered, but registration damage or prejudice to one of the parties or to a third
requires a public instrument. In here, B may compel S person. Its enforcement would cause injustice by
to execute the needed public instrument. reason of some external facts.
a. Voidable contract c. Rescissible Contract
S sold to B orally his specific land. After B paid S the
b. Void Contract d. Unenforceable Contract
price of the sale, he wants to register the land in his
name but he needed a public instrument of sale. In
45. S1 – Reformation of the instrument interprets the
here B may compel S to execute the needed public
contract in order to express the true intention of the
instrument.
a. Both examples are false c. Only 2 is true parties.
b. Only 1 is true d. Both are true. S2 – An onerous contract is interpreted in favor of
greatest reciprocity of interest.
38. Ratification of voidable contract is necessary for its a. Both are true
validity. b. Both are false
One can ask for the annulment of a contract based on c. S1 is true, S2 is false
dolo incidente. d. S1 is false, S2 is true
a. Both are true c. I is true, II is false
b. Both are false d. I is false, II is true 46. S1 – In case of conflict between a general provision
and a special provision, the customs of the place shall
39. S was forced by X to sign a contract with B for the sale prevail.
of specific property for P10,000. C a creditor of X is S2 – A natural obligation is based on positive and equity
prejudiced by the contract. What can S do? law.
a. S may ask for annulment of the contract a. Both are true
b. S may ask for rescission of the contract b. Both are false
c. S may ask C to declare the contract avoided c. S1 is true, S2 is false
d. C may ask for the annulment of the contract. d. S1 is false, S2 is true

47. S1 – Motive is an essential element of a contract.

40. In the preceding number, what can C do?
a. C may ask for rescission of the contract S2 – Illegal motive makes the contract voidable.
a. Both are true
b. C may ask for the reformation
b. Both are false
c. C may ask S to declare the contract voided
c. S1 is true, S2 is false
d. C may ask for the annulment of the contract.
d. S1 is false, S2 is true

48. Must be in writing to be enforceable:

41. Which of the following contracts is voidable? a. Lease of land for 12 months c. Both of a and b
a. Those where both parties are incapable of giving b. Lease of car for 18 months d. None of a and b
consent to a contract.
b. Those undertaken in fraud of creditors when the
“Keep your dreams alive. Understand to achieve anything
latter cannot in any other manner collect the
requires faith and belief in yourself, vision, hard work,
claims due to them.
determination, and dedication. Remember, all things are
c. Those where the consent is vitiated by mistake,
possible for those who believe.”
violence, intimidation, undue influence or fraud
d. Those whose object is outside the commerce of
men
End of RFBT.3202

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