Obligation and Contracts 2

CONTRACTS
1. A delivered his bracelet to B for B’s necklace. No written agreement was signed by the parties. Which of the
following is appropriate description of the contract between A and B?
a. Onerous and bilateral
b. Onerous and innominate
c. Bilateral and innominate
d. Aleatory and nominate
2. A contract where the cause with respect to each contracting party is the prestation of the promise of a thing or
service by other is
a. An onerous contract
b. A gratuitous contract
c. An innominate contract
d. An eleatory contract
3. The following statements pertain to the cause of a contract. Which statement refers to motive?
a. It is the essential reason of a contract
b. It is always known to the contracting parties
c. Its illegality does not affect the validity of the contract
d. There will be no contract without it
4. When there is concurrence of offer and acceptance, there is

a. Payment c. Consent
b. Consignation d. Tender of payment
5. An absolutely simulated or fictitious contract is

a. Void c. Rescissible
b. Voidable d. Unenforceable
6. A contract where both contracting parties are incapable of giving consent is

a. Void c. Unenforceable
b. Rescissible d. Voidable
7. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the parties to a
contract, the proper remedy is
a. Ratify the contract
b. Ask fro specific performance
c. Annulment of the contract
d. Reformation of the contract
8. Not requisite fro the validity of a contract

a. Consent c. cause
b. Object d. Delivery
9. The contract must bind both contracting parties

a. Consensuality of contract
b. Simplicity of contract
c. Mutuality of contract
d. Relativity of contract
10. A stipulation in favor of a third person

a. Stipulation pour autrui
b. Stipulation pour over
c. Assignment of credit
d. Pactum commissoruim
11. A contract to make a deposit, to make a pledge or to make a commodatum is
a. Consensual c. Solemn contracts
b. Real contracts d. Formal contracts
12. A contract where consent is given through mistake, violence, intimidation, undue influence or fraud is
a. Rescissible c. Unenfoerceable
b. Voidable d. Void
13. A contract with a cause distinct from the selling price is

a. Lesion c. Dation
b. Cession d. Option
14. A is indebted to B with C as guarantor B assigns the credit to D, who in turn assigns the credit to C. Which is
correct?
a. The obligation of A is extinguished
b. The assignment to C did not affect the obligations of C as guarantor
c. The assignment by B to D extinguished the guaranty
d. C becomes the new creditor of A
15. Solidarity on the part of the obliges

a. Active solidarity c. Mixed solidarity
b. Passive solidarity d. Casual solidarity
16. This will cure the defect of an unenforceable contract

a. Acknowledgement c. Ratification
b. Confirmation d. Referendum
17. Characteristics of void contracts, except

a. Defense of illegality cannot be waived
b. Cannot be ratified
c. Action for declaration of inexistence does not prescribe
d. The inexistence can be assailed by the third person
18. If one debt is P12,000 and other is P6,000 and the debtor without making any application of payments gives
P3,000. How should said payment be applied, presuming that both debts are of the same nature and burden?
a. The payment will be applied to the P12,000 debt
b. The payment will be applied to the P6,000 debt
c. The payment will be applied equally
d. The payment will be applied proportionately
CONTRACTS
1. The principle that contracting parties may establish such stipulations, clauses, terms and conditions as they
may deem convenient, provided they are not contrary to law, moral, public policy and public order; refer to the
principle of.
a. Liberty of contract c. Consensuality of contract
b. Relatively of contract d. Mutuality of contract
2. A offered to sell her watch to B for P1,000. B offered to buy the watch for P800 but it was rejected by A.
when B turned to go away. A called him and said she is now willing to sell the watch for P800. may B refuse to
buy said watch?
a. No, because B’s offer of P800 was accepted by A.
b. No, there is a meeting of the minds between the parties or the subject matter and the cause of the contract.
c. Yes, because B made a counter offer which was rejected by A.
d. Yes, because the agreement is under the statute of frauds.
3. A insured his residential house for P5,000,000 on January 1, 2009. On June 30, 2009 B burned the insured
property. Which is not correct?
a. A can proceed against the insurer and collect the P5,000,000 policy
b. The insurer shall be subrogated to the rights of A after payment to A.
c. After payment the insurer shall have the right to proceed against B.
d. A should proceed against B, the guilty party and not the insurer.
4. A sold to B his cow for P5,000. No date is fixed by the parties for the performance of their respective
obligations. The obligation of A is
a. To deliver the cow immediately as there is a perfected contract
b. To deliver the cow within the reasonable time from the perfection of the contract.
c. To deliver the cow upon the payment of B of P5,000
d. To rescind the contract as there is no time fixed for the delivery and payment.
5. Contract which has no effect at all

a. Rescissible b. Voidable c. Unenforceable d. Void
6. A contract where the fulfillment is dependent upon the chance, so the values may vary because of the risk
or chance.
a. Commutative b. Aleatory c. Remunerative d. Gratuitous
7. A lost in gambling and as payment executed a promissory note in favor of winner, B. later, B assigned the
note to C. may C successfully recover from A?
a. Yes, if C is not aware that it is in payment of a gambling debt
b. No, because B cannot recover, so also cannot the assignee
c. Yes, because B can recover, so also the assignee can.
d. No, because promissory notes can only be negotiated but assigned.
8. A shipped his cargo in B’s vessel. B and C entered into a contract for C to unload the cargo from the ship’s
hold. In the lifting operations, A’s cargo was damaged, which is correct?
a. A may go against C and sue C for damages
b. A may go against either B or C and sue for damages
c. A may go against both B & C and sue for damages
d. A may go against B and sue for damages.
9. Pledge, deposit and commodatum are

a. Consensual b. Real Contracts c. Solemn contracts d. Formal contracts
10. When one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent
and grave evil upon his person or property, or upon the person or property of his spouse, descendants or
ascendants to give his consent, there is
a. Violence b. Mistake c. Intimidation d. Undue influence
11. Sometimes referred to as conditional precedent

a. Casual condition c. Suspensive condition
b. b. Potestative condition d. resolutory condition
12. If a third person pay for the debtor with the consent of the debtor, he
a. Can recover only in so far as the payment has been beneficial to the debtor
b. Can recover the amount he has paid but he shall not acquire the rights of the creditor
c. Can recover the amount he has paid or the payment that has benefited the debtor whichever is lower.
d. Can recover the amount he has paid and he shall acquire the rights of the creditor such as those arising from
a mortgage, guaranty or penalty
13. A obtained from B a loan for P1,500 with interest at 10% per annum, the payment of which loan was
secured by a guaranty secured by C. after the maturity of the loan, D a friend of A, went to B and paid the latter,
without the knowledge of A, P1,400 for said loan and thereupon B signed and delivered to D a receipt of this
tenor “Received from D P1,400 in full payment of A’s obligation in my favor. Sgd. B”. Which is correct?
a. D may recover from A the amount of obligation, that is P1,500, because A was benefited up to P1,500
b. D may recover from A P1,500 plus interest
c. D may recover from A P1,400 plus interest
d. D may recover from A P1,400 without interest.
14. The process of intentionally deceiving others by appearance of a contract that really does not exist
a. Absolute simulation b. Relative simulation c. Fraud d. Misrepresentation

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CONTRACTS

4. When there is concurrence of offer and acceptance, there is

5. An absolutely simulated or fictitious contract is

6. A contract where both contracting parties are incapable of giving consent is

8. Not requisite fro the validity of a contract

9. The contract must bind both contracting parties

10. A stipulation in favor of a third person

13. A contract with a cause distinct from the selling price is

15. Solidarity on the part of the obliges

16. This will cure the defect of an unenforceable contract

17. Characteristics of void contracts, except

5. Contract which has no effect at all

9. Pledge, deposit and commodatum are

11. Sometimes referred to as conditional precedent

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