Quiz – Contracts

1. Which of the following is contract?

a. An action for rescission of contract prescribes in five(5) years counted from the execution of the
contract.
b. An action to declare contract void is not subject to prescription.
c. An action for annulment of contract is imprescriptible.
d. An action to enforce judicially a natural obligation prescribes in 4 years.
2. Which of the following statements is true as regards a void contract?
a. A void contract may be ratified by the acceptance by a party to the contract of a benefit under
its terms.
b. The right to set up the defense of illegality of a void contract may be waived if the illegality is
not raised within reasonable time.
c. If a void contract is novated by a valid one, such novation is valid.
d. The right to set up the defense of illegality of a void contract is imprescriptible.
3. It is a contract by virtue of the terms of which the parties thereto promise and obligate themselves
to enter into another contract at a future time, upon happening of certain events, or the fulfillment
of certain conditions.
a. Resolutory contract c. suspensive contract
b. Option contract d. auto-contract
4. Which of the following is a feature common to chattel mortgage and pledge?
a. The deficiency is recoverable in case of sale of the thing pledged/mortgaged.
b. The object of the contract is a movable property.
c. The excess of the proceeds of sale over the amount of the obligation belongs to the
pledger/mortgagor.
d. An affidavit of good faith is required to bind third persons.
5. F made a telephone call to his son S, for S to sell F’s land. In the deed of absolute sale which was
acknowledge before a notary public, S signed as agent of F. Later, in the presence of two witnesses,
F ratified the sale executed by S. Which is correct?
a. The sale was void at the start but was validated upon the ratification by F.
b. The sale remained void despite the ratification by F.
c. The sale was valid from the start since it was made in a public instrument and F, the owner
ratified the sale.
d. The sale was merely unenforceable at the start by the ratification validated the contract.
6. The following contracts are defective. Which one is unenforceable?
a. Contracts of sale by which a guardian acquires the property of his ward without the approval of
the court.
b. Contract of sale by which a city mayor acquires a portion of the city part pursuant to a city
ordinance enacted by the City Council.
c. Contracts whose object is outside the commerce of man.
d. Those were both parties are incapable of giving consent to a contract.
7. Which of the following is not correct in rescission?
a. Cannot be availed when the party who has been damaged has other legal remedy.
b. The person who seeks rescission must be able to return what ha out to return.
c. The object of the contract is not in the possession of third person who have acquired it in good
faith.
d. Can be demanded by any of the contracting parties.
8. A contract in which a person literally contracts with himself is
a. Adhesion contract
b. Auto contract
c. Accessory contract
d. Unilateral contract
9. The statement “Contracts shall be obligatory in whatever form they have been entered into
provided all the requisites for their validity are present” refers to
a. Real contracts
b. Consensual contracts
c. Formal contracts
d. Solemn contracts
10. To be valid and enforceable, the following contracts should be in writing, except:
 a. Contract to pay interest on loan
b. Contract of donation of real property
c. Contract giving authority to an agent to sell a piece of land.
d. Contract made in consideration of marriage.
11. As a rule, which of the following contracts of sale is void?
a. between two insane persons
b. between brother and sister
c. between husband and wife
d. between pupil and teacher
12. A bought a car from B, a minor, for P100,000. One week later, A discovered that B was a minor at
the time of sale so he filed a complaint in court to annul the sale. Wil the action prosper?
a. Yes, B being a minor is incapacitated to enter into contract.
b. No, the right to annul the sale is given to B.
c. Yes, B cannot file the action to annul the sale because he is a minor.
d. No, unless there is lesion of more than ¼ of the value of the property.
13. If the thing sold had any hidden fault or defect at the time of the sale and should thereafter be lost
by a fortuitous event by the seller is not aware of the defect, how much can the vendee recover
from the vendor, if the selling price on the date of sale is P100,000 and the value on date of loss is
P60,000?
a. P100,000
b. P60,000
c. P40,000
d. P0.
14. Which of the following contracts is void?
a. Lease of a piece of land made by a minor without a written authority from his parents (the
owner).
b. Oral sale of a piece of land made by the owner to an insane person.
c. Written sale of a gold necklace made without authority from the owner.
d. Written sale of a piece of land with oral authority from the owner.
15. The following may be objects of contract of pledge, except
a. Shares of stocks
b. Pieces of jewelry
c. An agricultural land
d. A negotiable bill of exchange
e. Which of the following is correct?
a. An action for rescission of contract prescribes in five (5) years counted from the
execution of the contract
b. An action to declare contract void is not subject to prescription
c. An action for annulment of contract is imprescriptible
d. An action to enforce judicially a natural obligation prescribes in 4 years
16. The following contracts should observe Statute of Frauds, except:
a. Lease of real property longer than one year
b. Representation as to the credit of a third person
c. Limited partnership not notarized
d. Prenuptial agreement
17. S makes an offer to B on January 12, CY. B makes known his acceptance in a letter sent on January
2, and received by S on January 10. Meantime, on January 5, S becomes insane.
a. The contract is not binding under manifestation theory.
b. The contract is not binding under expedition theory.
c. There is already a meeting of minds, the contract is perfected
d. The contract is voidable because one party is insane.
18. Which of the following can be considered as feature of a void contract?
a. Subject to ratification
b. They exist
c. Action or defense for nullity is subject to prescription
d. Defense cannot be waived
19. In three of the following defective contracts, ratification cleanses the defects. Which is the
exception?
 a. Contracts entered into by a person who has been given no authority
b. Sale of a piece of land thru an agent, the authority is oral
c. Sale of immovable property or interest orally entered into
d. Special Power of Attorney involving novation but not notarized
20. S, a minor, owns a specific property valued P 50,000. B, capacitated, by means of fraud induced S to
sell his property to him (B) for P 10,000 which S did so. The contract is in writing.
a. The contract is void
b. The contract is rescissible because the ward suffered lesion by more than ¼ of the value
c. The contract remains unenforeceable because it falls under the Statute of Frauds
d. The contract is anullable
21. Type of defective contract that creates no rights and impose no obligation, but are susceptible of
ratification.
a. Void contracts
b. Rescissible contracts
c. Unenforceable contracts
d. Voidable contracts
22. The representative of an absentee sells a house and lot belonging to the latter valued at P2M for
P500,000 with court approval. The contract is:
a. Rescissible c. Voidable
b. Unenforceable d. Valid
23. Example No. 1: Donation by an insolvent debtor.
Example No. 2: Sale of shares of stocks in violation of preemptive right.

a. Voidable; Rescissible
b. Rescissible; voidable
c. No. 1 is rescissible; while No.2 is unenforceable
d. Both are rescissible

24. Which of the following contracts cannot be ratified?

a. Those whose cause or object did not exist at the time of the transaction
b. Unauthorized contracts
c. Those where both parties are incapable of giving consent
d. Those that fail to comply with the Statute of Fraud

25. On October 4, CY, A is indebted to B for P50,000 for a 20-day period. A proposed to B that X will pay
A’s debt and that A will be free from all liabilities. B and X agree to the proposal. On October 25, CY,
X became insolvent. At the time of delegation, X was already insolvent but this was not known to A.
The insolvency is not public knowledge. So B sues A on the ground that it was A who made then
proposal that A guaranteed X’s solvency. Decide.
a. A is liable because he is presumed to have guaranteed X’s solvency.
b. A is not liable because he does not know the insolvency of X at the time of delegation and
neither was the insolvency of public knowledge.
c. A is liable because he did not exercise due diligence in determining the insolvency of X.
d. A is liable because X agree to the proposal to make himself solidarity liable for the
obligation.
26. When the thing deteriorates pending the fulfillment of the suspensive condition without the fault of
the debtor, the impairment is:
a. To borne by the party who caused the deterioration
b. To be borne partly by the debtor and partly by the creditor
c. To be borne by the debtor
d. To be borne by creditor
27. X enters into a contract with Y whereby X sold his land orally to Y. The land has been delivered and
the money has been paid. Decide.
a. The contract fully enforceable.
b. The contract is unenforeceable
c. The contract is not valid because the contract is not made in public instrument
d. The contract is not valid because it is not in writing as required by the Statute of Fraud
28. On September 1, CY, A entered into a contract with B whereby A sells to B 5,000 sacks of sugar to
be delivered on the 15th and to be paid in full on the 30th. There was no agreement for rescission
based on prepayment. A did not deliver on the 15th but on the 30th, he was willing and offering to
deliver but B did not make payment on said date and so A did not like it and refused to make
delivery. Which is incorrect?
a. A cannot rescind the contract for nonpayment of the price
b. A cannot refuse to deliver the goods
c. B is not entitled to recover damages
d. A can rescind the contract for nonpayment of the price since B is at fault
29. One is incorrect about elements of contracts:
a. Absence of an essential element voids the contracts
b. Absence of natural or accidental elements may result to rescission and damages
c. In policitation, there is meeting of meetings but contract is incomplete hence needs
reformation
d. In stipulation, pour autrui consent or acceptance of the third person involves is
mandatory

30. All are essential characteristics of contracts except

a. Relativity of contracts
b. Obligatoriness of contracts
c. Autonomy of contracts
d. Uniformity of contracts

31. Statement 1: The death, civil interdiction, insanity or insolvency of either offeror or offeree
before acceptance is conveyed makes the offer ineffective
Statement 2: The cause of a contract is the psychological or personal reason whereas
motive is the objective or juridical
a. True; true
b. False; false
c. True; false
d. False; true
32. The following contracts must appear in a public instrument except:
a. Donation of immovable property
b. Agency to sell land
c. Partnership where immovable property or real rights are contributed
d. When limited partnership is formed
33. 1st statement : Rescission of contracts and rescission or resolution of reciprocal obligation
are the same
2nd statement: Prescription does not affect unauthorized contracts.

a. True, True c. False, True

b. False, False d. True, False
34. In void contract neither party may seek to enforce it, neither can they seek the aid of law.
But recovery can be made by the other party in the following cases, except:
a. The innocent party
b. The debtor who pays usurious interest
c. The party rejecting the void contract before illegal purpose is accomplished
d. In pari delicto parties
35. The guardian of an insane person sells a house and lot belonging to the latter valued at P1,000, 000
to B, buyer for P700,000 with the approval of the court. The contract is:
a. Valid perfectly d. Unenforceable
b. Rescissible e. Void
c. Voidable

GOD BLESS…………………