BAM 128

P3 LONG QUIZ - 45 ITEMS

MULTIPLE CHOICE.

1. 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. nominal contract.

2. A contract where the parties contemplate a real fulfillment, hence, equivalent values are given
is known as:

A. commutative contract.
B. gratuitous contract
C. onerous contract
D. aleatory contract

3. 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 customers,
public order or public policy. This is known as the principle of:

A. Liberty of contract.
B. Mutuality of contract
C. Relativity of contract
D. Obligatory force of contract

4. 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 of contract.

5. 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 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

6. 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.

7. 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
fulfillment of what has been expressly stipulated but also to all the consequences which,
according to their nature, may be in keeping with good faith, usage and law. This is kown as the
principle of:
A. consummation of contract.
B. consensuality of contract.
C. obligatory force of contract and compliance in good faith.
D. mutuality of contract.

8. A written  contract of sale of a specific car between sylas and azir. The car actually belonged
to kassadin and was sold by sylas in the name of kassadin without the latter’s authority. The car
is still in possession of kassadin although azir has remitted the price of P60,000.00 to sylas
A. Valid and enforceable
B. Rescissible
C. Voidable
D. Unenforceable

9. A contract entered into by an incapacitated person is:

A. void.
B. voidable.
C. rescissible.
D. unenforceable.

10. Contracts entered into in a state of drunkenness or during hypnotic spell are:
A. valid.
B. voidable.
C. rescissible.
D. void.
11. A contract entered into by an insane person during a lucid interval is:
A. valid.
B. voidable.
C. rescissible.
D. void.

12. Mistake in three of the following will make a contract voidable. Which one will not?
A. mistake as to the substances 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 qualifitcations of one of the parties, which identity or
qualifications have been the principal cause of the contract.
D. simple mistake of account.

13. It involves the employment of serious or irresistible force to obtain consent.

A. intimidation.
B. threat.
C. violence.
D. moral coercion.

14. It is present when one of the contracting parties is complled 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, and ascendants, to give his consent.
A. violence
B. physical coercion.
C. intimidation.
D. mistake.

15. One of the following contracts is not vitiated by intimidation or violence, and hence valid.
A. a contract of sale which was signed by a party because his arm was being twisted by a
third person.
B. a contract of sale which was entered into because the other party was pointing a gun at
his wife
C. a contract where a party was complled to a assign his property to the other to pay a just
debt because the latter threatened to sue him in court if he does not pay his debt.
D. a contract of donation of apercel of land which a party signed because the other party
threatened to burn his house.

16. Abulencia, who knew that his ring was embellished with glass, told banzon that the
embellishment was emerald. banzon , who knew that his watch was gold-plated, told Abulencia
that it was made of pure gold. Banzon, believing that abulencia’s ring was embellished with
emerald, and abulencia, believing that banzon’s watch was made of pure gold, then entered into
a contract whereby they exchanged their respective articles. A week later, banzon discovered
that the ring was adorned only with an ordinary glass.
A. the contract may be annulled at the instance of banzon since he discovered the fraud,
B. the contract may be annulled at the instance of abulencia since banzon also employed
fraud.
C. the contract is void because of the bad faith of both parties; hence, it shall not produced
any effect.
D. neither party may ask for annulment since both are guilty of fraud. The contract, therefore,
is valid.

17. Servando and bernardo entered into a contract where they made it appear that servando
was mortgaging his lot and building to bernardo to secure a contract of loan. The truth however,
was that servando was selling his lot and building to bernardo. Which of the followings
statements is true?
A. The parties are bound by the contract of sale.
B. the parties are bound by the contract of loan and mortgage.
C. the parties are not bound at all.
D. the parties are bound by the contract of sale only when third persons are affected.

18. One of the following is not a requisite of the object of a contract.

A. it must be withing the commerce of men.
B. if it is a right, it must be intransmissible.
C. it must not be contrary to law, morals, good customs, public order or public policy.
D. it must be determinate as ti its kind or capable of being made determinate without the
need of the parties entering into a new agreement.

19. S and B orally entered into a contract whereby S sold his one-year production of eggs in his
poultry farm to B for P50,000.00 which amount B immediately gave in cash to S. the contract
between S and B is:
A. void because the object was not existing at the time of execution of the contract.
B. valid because future things may be the object of contracts.
C. rescissible because B will likely suffer damage if the eggs do not come into existence.
D. unenforceable because the contract was not in writing.

20. A died leaving properties estimated at P1,000,000.00 to his sons S and T. subsequently, S
sold one-half of his inheritance to X for P300,000.00, although his share was still to be
delivered.
A. the contract is valid since the inheritance is an existing inheritance.
B. the contract is void because what S. sold is future inheritance which may not be the object
of a contract as rule.
C. the contract is rescissible.
D. the contract is unenforceable

21. One of the following is not a requisite of cause in a contract. Which is it?
 A. it must be exist.
B. it must be lawlful.
C. it must not be false.
D. it must be clearly stated in the contract.

22. The defective contracts arranged according to the degree of their defectiveness from the
least defective to the most defective are:
A. voidable, rescissible, unenforceable, and void contracts.
B. resicissible, unrenforceable, voidable, and void contracts
C. rescissible, voidable, unenforceable, and void contracts.
D. unenforceable, rescissible, voidable, and void contracts

23. The following contracts are recissible, except:

A. those entered into by guardians whenever the wards whom they represent suffer lesion
by more than one-fourth of the value of the things which are the object of the contract.
B. those entered into in representation of absentees, if the latter suffer lesion by more than
one-fourth of the value of the things which are the object of the contract.
C. those undertaken in fraud of creditors but the latter can still collect the claims due them
through other means.
D. those which refer to things under litigation if they have been entered into by the
defendant without the knowledge and approval of the litigants or of competent judicial authority.

24. The foillowing are the requisite of a rescissible payment, except:

A. the debt is already due.
B. the debtor is insolvent.
C. the debtor pays the debt.
D. tbe payment is not yet due.

25. D owes the following creditors: X, P50,0000,00; Y, P60,000,00; and Z P90,000,00. He has
assets valued at P4000,000.00. Subsequently, D donated, among his assets, a parcel of land
valued at P250,000.000 to C. the donation and acceptance were made in a public instrument.
The donation of the land made by D to C is:
A. rescissblem because it was presumed to have been made in fraud of creditors.
B. unenforceable, because D was not authorized by his creditors.
C. void, because the donation and acceptance should be registered.
D. voidable because D does not have the free disposal of his property.

26. C filed a complaint in court against D to collect a money debt amounting to P500,000.00.
After due hearing, the court renered judgement and beofre C has collected D’s debt, D sold a
parcel of land to X. Z, another creditor, learned if the sale made by D to X and now files an
actions to rescind the sale.
A. the right to rescind the sale is exclusively granted to Z because it was he who first
learned of the sale and he has still file a claim to collect S’s debt.
 B. the right to rescind the sale is exclusively granted to C because it was he who obtained a
favorable judgement and he has not yet collected D’s debt.
C. both C and Z have a right to rescind the sale since the sale is presumed in fraud of
creditors having been made by party against whom judgement has been rendered.
D. neither C nor Z has a right to rescind the sale.

27. R, the representative of A, an absentee, sold the corn with a value of P30,000.00 and the
palay with a value of P50,000.00, harvested from A’s agricultural farm for a subsequently
known, was informed of the sale made by G. based on the foregoing facts, which of the
following statements is incorrect?
A. a may seek payment of an additional P30,000.00 to recover the damages suffered.
B. a may just seek rescission of the sale of the corn to recover the damages he suffered
C. a may seek rescission of the sale of part of the corn and part of the rice to the extent of
the damages he sustained.
D. a may seek the rescission of the total sale to recover the damages he suffered.

28. The following contracts are voidable, except:

A. contracts entered into during a state of drunkenness or hypnotic spell.
B. contracts entered into during a lucid interval.
C. contracts where one of the parties incapable of giving consent.
D. contracts where the consent of one party is vitiated by violence, intimidation, mistake,
fraud or undue influence.

29. Servino, orally sold a one-square meter lot for P475.00 to benedicto, chairman of barangay
mapayapa, who was officially autohorized in a barangay resolution to look for officially
authorized in a barangay resolution to look for and buy a lot where the barangay would
construct a barangay marker. Since benedicto did not have sufficient cash at he time, he told
serverino that he would give the amount the following day. The next day, benedicto went to the
place of severino to pay the price of the lot but severino refused to accept it, saying that the sale
is unenforceable not being in writing,
A. the sale of the lot is enforceable although not in writing because the price is less than
P500.00
B. the sale is enforceable because benedicto was duly authorized to buy the lot through a
resolution which is writing.
C. the sale of the lot is void not being in a public instrument.
D. the sale is unenforceable since the sale of real property must be in writing regardless of
the price to be enforceable.

30. The following contracts are void or inexustent, except:

A. those whose object is outside the commerce of men
B. those which contemplate an impossible service.
C. those who cause or object did not exist at the time of the transaction.
D. those were one of the parties employed fraud to obtain the consent of the other.
31. If illegal contract between the parties is a criminal offense and both parties are guilty ( in pari
delito), such illegal contract shall produce the following effects, except:
A. the parties shall have no right of action against each other.
B, both parties shall be criminally prosecuted.
C. the effects and instruments of the crime will be confiscated in favor of the government.
D. the parties may recover what they have given if it is not illegal in itself.

32. Reformation of instruments has the following requisites, except:

A. there must be a meeting of minds of the parties to the contact.
B. the true intention of the parties is not expressed in the instrument.
C. the failure of the instrument to express the true intention of the parties is due to mistake,
fraud, inequitable conduct or accident.
D. the contract must be in a public instrument.

33. Reformation is not available in the following cases, except:

A. simple donations inter vivos wherein no condition imposed.
B. wills
C. when the real agreement is void.
D. when through the ignorance, lack of skill, negligence or bad faith on the part of the
person drafting the instrument does not express the intention of the parties.

34. With the intention of raising money to buya gun which he would use in killing X, his mortal
enemy, S soild his only car for P100,000.00 cash to B who knew nothing of the intention of S in
selling the car. After the sale, S was able to buy gun complete with all the papers required by
law. B on the other hand was able to register the car in his name at the land transportation
office.
A. the sale of the car by S to B is valid provided S does not kill X
B. the saleof the car by S to B is void if S kills X.
C. the sale of the car by S to B is valid whether S kills X or not.
D. the sale of the car by S to B is void whether S kills X or not

35. Which if the following contracts is rescissible?

A. contracts entered into during a hypotinic spell.
B. contracts entered into in a state of drunkenness.
C. contracts entered into defraud creditors when the latter cannot collect the claims due
them
D. contracts where both parties are incapable of giving consent.

36. Faker is a minister of a certain church whose members include onin, onin regularly confides
in faker because of his many personal problems. Faker is interested in buying the lot of onin and
uses his position as elder of the church confidant of onin to convince of onin to sell to him the
lot. Should onin sell thbe lot to faker by reason of faker taking advantage of his confidential
relationship with onin, the contract between them would likely be voidable because of:
A. intimidation.
 B. undue influence
C. fraud,
D. mistake.

36. Guision a movie actor who has fathered many children by different women, donated a
house and lot to garen believing that the latter was his illegitimate son. The deed of the donation
and its acceptance were in a public instrument and a new certificate of title to the house and lot
was issued in the name of garen. A few months later guison discovered that garen was not his
son but that of another movie avtor. Guison wants to annul the contract.
A. guison may no longel annul the contract because all requisite have been complied with a
title already issued in the name of garen.
B. guision may annul the contract on the ground of mistake as to the identity of garen
C. guision may not annul the contract but he can rescind it because he suffered damages.
D. guision need not annul the contract but he can have it declared void ab initio.

37. Lucian convinced zeri to buy a gold plated bar which lucian told zeri was made of pure gold.
Zeri bought the thing believing that it was really made of pure gold. The contract between lucian
and zeri is:
A. valid.
B. voidable.
C. rescissible.
D. void.

38. Lancelot, out of his love and affection for odette, donated a parcel of aland to the latter who
accepted it. The formalities required by law were complied with. The contract lancelot and
odette is:
A. an onerous contract
B. a gratuitous contract.
C. a remuneratory contract.
D. an accessory contract.

39. Which among the following contracts is void?

A. a contract of barter between selena, insane, and baron, 17 years old.
B. a contract of sale where baron, the buyer, twisted the arm of selena, the seller, so that
selena would sign the deed of sale.
C. a contract of sale where baron, the buyer , aimed a gun at the husband of selena, so
that selena would sign the deed of sale.
D. a contract for the sale of a cow which is suffering form a contagious disease.

40. Which of the following contracts is valid and enforceable?

A. An oral promise to answer for the default of another.
B. A donation and its acceptance in private instrument of a parcel of land.
C. An oral lease of mining equipment for more than two years.
D. An oral contract of sale of ring worth P450.00 between an insane and a minor.
41. Sylvia and tahm entered into a contract whereby sylvia sold his car to tahm for P100,000.00.
Based on the foregoing, which of the followijng statements is incorrect?
A. The contract is voidable if sylvia is 17 years old, and tahm is 25 years old
B. The contract is unforeable if sylvia is 17 and tahm is insane
C. The contract is void if tahm, 25 years old, compelled sylvia, 30 years old, to sign the
deed of sale by threatening to burn the house of sylvia.
D. The contract is rescissible if at the time of the sale, the car was the subject of litigation
brought by akali against sylvia to recover the car, and the court and akali did not give
their authority to the sale.

42. Which of the following contracts is valid and enforceable?

A. A contract where a party gave his consent in a moment of drunkenness.
B. A contract where a party gave his consent because the other party threatened to sue
him for an unpaid debt,
C. A contract where a party gave his consent because the other party threatened to kill the
first party;s spouse
D. A contract where there was inadequate cause attended by mistake

43. An insurance contract is:

A. An aleatory contract.
B. A contract of adhesion.
C. Both (a) and (b)
D. Neither (a) nor (b)

44. Sandra sold his lot consisting of 1,000 square meters to ben, however, the deed of sale
signed by the parties showed a total area of 1,200 square meters due the secretary’s mistake.
Latter, selena discovered the mistake. What remedy is available to either party?
A. Annulment
B. Reformation
C. Rescission
D. Declaration of nullity of the contract

45. When a physician who takes improper advantage of his power over the will of his patient in
order to get the latter’s consent to a contract between the two of them, the contract will:
A. Likely be voidable because of intimidation.
B. Still be valid because the patient is merely returning the favor to his physician who take
care of his health.
C. Likely be voidable because of undue influence
D. Be void because of unlawful service