BL 1 (Obligations and Contracts)

Final Examination

MULTIPLE CHOICE: 9. The contracts entered into by the persons who cannot
Choose the letter of the correct/best answer. give consent is:
1. The contract must bind both contracting parties, its a. void ab initio, because actually there is no consent
validity or compliance cannot be left to the will of one b. unenforceable only because the contract maybe
of them, and this is ratified
a. mutuality of contracts c. rescission because of the damage caused to the
b. relativity of contracts person incapacitated
c. freedom of contracts d. voidable as there is consent although vitiated or
d. obligatory force of contracts defective
2. By this principle, contracts take effect only upon the 10. A defective contract because it is entered into in the
contracting parties, their assigns or successors in name of another without or in excess of authority, or it
interest is verbal is:
a. mutuality of contracts a. unenforceable
b. relativity of contracts b. void
c. freedom of contracts c. voidable
d. obligatory force of contracts d. rescissible
3. Three of the following are essential elements of the 11. A defective contract because it is prohibited by law is:
contract, except: a. void
a. cause of the obligation, which is established b. rescissible
b. consent of the contracting parties c. voidable
c. motive of the parties d. unenforceable
d. object certain, which is the subject matter of the 12. The following are still valid contracts except:
contract a. void
4. A contract which does not have any specific name b. voidable
name or designation in law: c. unenforceable
a. nominate contract d. rescissible
b. innominate contract 13. The following are void contracts, except
c. commutative contract a. A contract whereby X promised to give as the
d. aleatory contract common-law-wife or Y without the benefit or
5. The warranty against hidden defects in a contract of marriage in consideration of P1,000,000
sale is an example of: b. An agreement whereby A is to render service as
a. natural elements a servant to B without compensation as long as
b. accidental elements A has not paid him debt
c. essential elements c. A stole the car of B. Later they entered into a
d. original elements contract whereby B would not prosecute A in
6. The following cannot give consent to a contract, consideration of P1000,000
except: d. A stipulation in a contract of lease whereby the
a. minors, except sale of necessaries in life landlord can go to court to eject the tenant in case
b. insane persons of failure of the latter to pay the rent agreed upon
c. demented 14. A, with a violence in her eyes, intimidated her
d. minors who represent themselves as of legal age husband B to sell his exclusive property to her. The
to one in good faith. contract to sell is
7. Which of the following is a definite offer? a. rescissible c. voidable
a. Will you buy this watch I am wearing for b. unenforceable d. void
P1,000? 15. Which of the following are rescissible contracts?
b. I am willing to buy your car. a. Those made by guardians when their wards
c. I will consider the sale of my land to you for suffer lesion by more than ¼ of the value of the
P100,000. things which are the object thereof.
d. Business advertisements of things for sale. b. Those where one of the parties is incapable of
8. A defective contract where damage or lesion is giving consent to a contract.
essential is: c. Those that do not comply with the Statute of
a. rescissible Frauds.
b. unenforceable d. Those which are absolutely simulated or fictitious.
c. voidable
d. void 16. Which of the following are void contracts?
a. Those made by guardians when their wards suffer
lesion by more than ¼ of the value of the things
which are the object thereof.
b. Those where one of the parties is incapable of
giving consent to a contract.
c. Those that do not comply with the Statute of Frauds.
 d. Those which are absolutely simulated or 2. The words of the contract shall prevail over the
fictitious. evident intention of the parties.
17. Which of the following are unenforceable contracts? 3. The contemporaneous & subsequent acts of the parties
a. Those made by guardians when their wards suffer shall be principally considered in order to ascertain
lesion by more than ¼ of the value of the things their intention,
which are the object thereof. 4. Contracts shall not be understood to comprehend
b. Those where one of the parties is incapable of things & cases distinct or different from that
giving consent to a contract. intended by the parties.
c. Those that do not comply with the Statute of 5. If some stipulation of the contract has several
Frauds. meanings, it shall bear that import which would render
d. Those which are absolutely simulated or fictitious. it effectual.
18. Which of the following are voidable contracts? 6. The various stipulations of a contract shall not be
a. Those made by guardians when their wards suffer interpreted as a whole.
lesion by more than ¼ of the value of the things 7. Omission or deficiency in a contract may be filled by
which are the object thereof. custom or usage of the place.
b. Those where one of the parties is incapable of 8. Obscure words or stipulations in a contract shall
giving consent to a contract. favor the party who caused the obscurity.
c. Those that do not comply with the Statute of 9. Doubts in gratuitous contracts shall be settled in such a
Frauds. way that the least transmission of rights & interests
d. Those which are absolutely simulated or fictitious. shall prevail.
19. Sale upon credit by an insolvent debtor and evidence 10. Doubts in onerous contracts shall be settled in favor of
of large indebtedness are some of the circumstances the greatest reciprocity of interests.
that have been denominated by our courts as:
a. badges of fraud ENUMERATION
b. badges of intimidation
c. badges of violence 30. – 33. Classification of contracts according to
d. badges of mistake perfection. Consensual, Real, Solemn
20. The rule which requires that certain agreements or 34. – 36. What may be the object of a contract. All things
some note or memorandum thereof, shall be in writing wn the commerce of man. Services that is lawful. All rights
& subscribed by the party charged or by his agents; that is transmissible.
otherwise such agreements shall be unenforceable by 37. – 39. Characteristics of consent. Intelligent, Free and
action because evidence of the same cannot be Voluntary, Concius
received without the writing, or a secondary evidence 40. – 44. Vices of consent. Error or Mistake, Violence and
of its contents: Intidimation, Undue Influence and Fraud (1337-39)
a. Statute of Frauds 45. – 48. Kinds of defective contracts. Reci, Voidable,
b. Statute of Intimidations Unenfor and Void
c. Statute of Mistakes 49. – 50. Kinds of fraud in contracts. Casual and Incidental
d. Statute of Limitations
things rights services consensual real formal
TRUE OR FALSE: intelligent voluntary conscious dolo causante
Write TRUE if the statement is true; write FALSE if the dolo incidente fraud intimidation
statement is false. violence undue influence mistake
1. If the terms of a contract are clear, the literal meaning rescissible voidable unenforceable void
of its stipulations shall control.