CONTRACTS - ANSWER KEY

QUIZ 1 - CONTRACTS

1. 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: relativity of contract

2. A contract where both parties are required to do or give something is known as a: bilateral contract

3. They refer to particular stipulations of the parties in a contract. Accidental elements

4. On May 1, 2022, S offered to sell a specific car to B for P500,000.00. B sent his letter of acceptance to
S on May 8, 2022. On May 10, 2022, however, S died in a vehicular accident and his secretary
received the letter of acceptance on May 12, 2022 unaware that S had already died. The contract was
not perfected because the offer of S became ineffective when he died.

5. A contract whose cause is the promise of a thing or service by the other party is: an onerous contract

6. A contract that does not have any special name under the law is known as: innominate contract

7. 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: contract

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

9. One of the following is not a real contract. Sale

10. The stages of a contract according to the order of their occurrence are: conception, birth, and
consummation

11. 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: valid because future things may be the object of contracts

12. The elements of a contract without which a contract would not exist are known as: essential elements

13. P appointed A as his agent to sell P's only Honda Civic car for P400,000.00 cash. On November 7,
2022, 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, 2022 by sending a letter of acceptance to A, which
letter of acceptance was received by A on November 9, 2022. On November 10, 2022, A informed P
that B had accepted the offer. The contract was perfected on November 9, 2022 when A received
the letter of acceptance.

14. A contract may be enforced by or against a third person, except: when the benefit to the third person
is merely incidental

15. One of the following is a natural element of a contract of sale. Warranty against eviction
16. Sisa borrowed P1,000,000 from Crisostomo. Sisa died without having paid her loan obligation to
Crisostomo. She left Basilio, her son and heir, properties worth P900,000. Basilio is liable to
Crisostomo for P900.000

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

18. A consensual contract has the following essential elements: consent of the contracting parties, object
certain, and cause or consideration

19. One of the following is not a requisite of the object of a contract. If it is a right, it must be
intransmissible

20. Aside from fraud and undue influence, the following are the vices of consent, except: dealer’s talk

21. One of the following is not a requisite of cause in a contract. Which is it? It must be clearly stated in
the contract

22. 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: mutuality of contract

23. On June 1, 2022, 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, 2022. On June 12, 2022, B revoked his previous acceptance and
mailed his letter of revocation on the same date. S received the letter of acceptance on June 14, 2022
and the letter of revocation on June 15, 2022. The contract was not perfected because at the time
the acceptance was received, the parties were no longer of one mind.

24. The following are incapable to give consent, except: Deaf-mutes who know how to read

25. 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. The contract was not perfected because the acceptance by B was qualified and it
constituted a counter-offer

Quiz 2 - Contracts
1. Under the Statute of Frauds, certain contracts must be in writing to be enforceable. One of the
following contracts is enforceable although not in writing. Which is it? An agreement for the leasing
for a longer period than one year of a personal property

2. Which of the following contracts is valid, enforceable and would not require any further act for the
convenience of the parties other than its registration with the proper government office? Sale of a piece
of land in a public instrument made through an agent whose authority is in a public instrument

3. Reformation of instruments has the following requisites, except: the contract must be in a public
instrument

4. Rescission of a contract will prosper in one of the following cases. Which is it? When the object of
the contract is in the possession of a third person who purchased the property of the debtor in
bad faith

5. A month ago, Salvi, 17.5 years old, orally sold his bicycle for P2,000.00 to Basilio, his neighbor, who
was only 16 years old. Mama, the mother of Salvi, learned about the sale by Salvi of his bicycle, and
demanded that Salvi give her the amount he received. Salvi, thus gave the proceeds of the sale to his
mother who spent the same for the family's daily expenses. Fafa, the father of Basilio, also learned
about the purchase by Basilio of the bicycle when saw it parked at their door and began using it almost
daily since Basilio bought it. Based on the foregoing facts, what is now the status of the sale entered
into between Salvi and Basilio? Validated from inception because of the subsequent acts of the
parent of the parties

6. Basilio bought a baby from Salvi. Basilio knew the baby boy was his illegitimate son by a woman
named; Warla, and which Warla sold to Salvi. The contract between Basilio and Salvi is: void

7. Ibarra and Fidel entered into a contract where they made it appear that Ibarra was mortgaging his lot
and building to Fidel to secure a contract of loan. The truth, however, was that Ibarra was selling his lot
and building to Fidel. Which of the following statements is true? The parties are bound by the
contract of sale

8. The following contracts are voidable, except: contracts entered into during a lucid interval

9. If the illegal contract between the parties is a criminal offense and both parties are guilty (in pari
delicto), such illegal contract shall produce the following effects, except: the parties may recover
what they have given if it is not illegal in itself

10. Ibarra sold his only car for P100,000.00 to Fidel. Unknown to Ibarra, Fidel bought the car from him so
that he could use the same to kidnap Klay. What is the status of the sale of the car by Ibarra to Fidel?
The sale is valid because the illegality of the motive of the parties to the contract does not have
any effect on its validity

11. Reformation is not available in the following cases, except: when through the ignorance, lack of
skill, negligence or bad faith on the part of the person drafting the instrument, the instrument
does not express the intention of the parties
12. Which among the following contracts is void? A contract for the sale of a cow which is suffering
from a contagious disease
13. Sisa, the guardian of Crispin, a minor, sold the fish harvested from the fishpond of Crispin for
P7,400.00. The fish, however, had a value of P10,000.00. The sale is rescissible because Crispin
suffered lesion by more than one-fourth of the value of the fish sold.

14. The following are characteristics of void or inexistent contracts, except: a void contract can be
ratified by the acceptance of benefits under it by one or both of the parties

15. Maria and Klay entered into a contract wherein Maria agreed to give Klay P50,000.00 within 30 days
from the date of the execution of their agreement, which, however, does not state the consideration
received by Maria from Klay. What is the status of the contract between Maria and Klay? The
contract is valid because the cause is presumed to exist and that it is lawful

16. The following contracts are unenforceable, except: those where the consent of a party is vitiated by
violence, intimidation, mistake, fraud or undue influence

17. The defective contracts arranged according to the degree of their defectiveness from the least defective
to the most defective are: rescissible, voidable, unenforceable, and void contracts

18. The action for annulment must be brought within 4 years. Which of the following is false with respect
to the reckoning of the beginning of the prescriptive period? In case of mistake, the period begins to
run from the time it was committed

19. Salvi convinced Basilio to buy a gold-plated bar which Salvi told Basilio was made of pure gold.
Basilio bought the thing believing that it was really made of pure gold. The contract between Salvi and
Basilio is: voidable

20. The following contracts are void or inexistent, except: those where one of the parties employed
fraud to obtain the consent of the other

21. Which of the following contracts is valid and enforceable? A contract where a party gave his
consent because the other party threatened to sue him for an unpaid debt

22. An absolutely simulated contract is: Void

23. Salvi, orally sold a one-square meter lot for P475.00 to Basilio, chairman of Barangay San Diego, who
was officially authorized in a barangay resolution to look for and buy lot where the barangay would
construct a barangay marker. Since Basilio did not have sufficient cash at that time, he told Salvi that
he would give the amount the following day. The next day, Basilio went to the place of Salvi to pay the
price of the lot but Salvi refused to accept it, saying that the sale is unenforceable not being in writing.
The sale is unenforceable since the sale of real property must be in writing regardless of the price
to be enforceable

24. If the contract is illegal but it does not constitute a criminal offense and only one party is guilty, such
illegal contract shall produce the following effects, except: the innocent party cannot demand the
return of what he has given

25. The following are characteristics of rescissible contracts, except: The action to rescind them are not
available to third persons even if their interests are directly affected