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. Bilateral and innominate
C. Bilateral and innominate
D. Aleatory and nominate

2. They are the elements that are found in certain contracts and are presumed to exist unless set aside by the parties

A. Accidental elements
B. Natural elements
C. Artificial elements
D. Incidental elements

3. They refer to the elements that may be stipulated by the contracting parties

A. Accidental elements
B. Natural elements
C. Artificial elements
D. Incidental elements

4.The following are some accidental elements of a contract of sale, except

A. Terms of payment
B. Interest rate
C. Place of payment
D. Accession and accessories

5. A contract where the cause with respect to each contracting party is the prestation or the
promise of a thing or service by the other is

A. An onerous contract
B. A gratuitous contract
C. An innominate contract
D. An aleatory contract

6. A contract where one party receives no valuable consideration and the cause is the liberality of the benefactor is

A. A gratuitous contract
B. A unilateral contract
C. An onerous contract
D. A commutative contract

7.

8. 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
B. Relativity of contract
C. Consensuality of contract
D. Mutuality of contract

9. The following instances will render an offer ineffective before acceptance is conveyed. Which one will not? When one of the parties

A. Is civilly interdicted
B. Becomes insolvent
C. Becomes insane
D. Is placed under a hypnotic spell

10. The following statements pertain to the cause of a contract. Which statement refer to motive?

A. It is the essential reason of a contract.
B. It is always known to the contracting parties
C. It is illegality does not affect the validity of the contract
D. there will be no contract without it

11. The bargaining point, that is, when negotiation is in progress (stage in the life of a contract)

A. Consummation
B. Conception
C. Perfection
D. Birth

12. The meeting of minds regarding the object and cause of the contract (stage in the life of a contract)

A. Conception
B. Preparation
C. Death
D. Birth

13. The point where the parties have performed their respective obligations and the contract is Terminated

A. Preparation
B. Conception
C. Perfection
D. Consummation

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

A. Payment
B. Consignation
C. Consent
D. Tender of payment

24. An absolutely simulated or fictitious contract is

A. Void
B. Voidable
C. Rescissible
D. Unenforceable

27. A owes B P10,000 due on March 10, 2010. A owes B P8,000 due on March 11, 2010. A
obliged himself to deliver to B a cow valued at P6,000 on March 12, 2010. On March 13,
2010, a paid B P10,000. If A makes an application of payment,

A. The P10,000 should be applied to the first debt only
B. The P10,000 should be applied to the second debt only
C. The P10,000 may be applied either to the first debt or second debt
D. The P10,000 may be applied to the first debt, or to the second debt or to the third debt

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

A. Void
B. Rescissible
C. Unenforceable
D. Voidable

29. The conception of a contract is when

A. When there is meeting of the minds
B. When negotiations are in progress
C. When the contract is executed
D. When the parties come to an agreement

30. Contract which has no effect at all

A. Rescissible
B. Voidable
C. Unenforceable
D. Void

31. Contract which can not be ratified

A. Rescissible
B. Voidable
C. Unenforceable
D. Void

32. 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 for a specific performance
C. Annulment of the contract
D. Reformation of the contract

33. A sold his land to B. The sale was made orally. B paid the agree price. B wanted to have the sale registered but he needs a public instrument. Which is correct?

A. B may sue A for the return of his money as no one shall be unjustly enriched at the expense of another.
B. B cannot demand the return of the purchase price because the sale is unenforceable.
C. B may compel A to execute the public instrument because the sale is valid.
D. B may only occupy and use the land as buyer in good faith

37. Although validly agreed upon, courts can nullify this contract because of damage to one of the parties or to a third person and its enforcement, may cause injustice by reason of some external facts

A. Rescissible contracts
B. Voidable contracts
C. Unenforceable contracts
D. Void contracts

38. 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

39. A clause providing that the mortgagee will automatically own the property mortgaged if the debt is not paid at maturity is

A. Dacion en pago
B. Payment by cession
C. Pactum Commissorium
D. Upset price

43. The contact must bind both contracting parties

A. Consensuality of contract
B. Simplicity of contract
C. Mutuality of contract
D. Relativity of contract

44. Not a characteristic of contract

A. Consensuality of contract
B. Simplicity of contract
C. Mutuality of contract
D. Relativity of contract

45. Contracts are generally effective only between the parties, their assigns and their heirs

A. Consensuality of contract
B. Simplicity of contract
C. Mutuality of contract
D. Relativity of contract

46. A stipulation in favor of a third person

A. Stipulation pour autrui
B. Stipulation pour over
C. Assignment of credit
D. Pactum commissorium

48. Not a requisite of stipulation pour autrui

A. The contracting parties must have clearly and deliberately conferred a favor upon third person
B. The stipulation must be part of the contract
C. The third person communicated his acceptance to the obligor before its revocation
D. There must be an agency between either of the parties and the third person

50. Pledge, deposit and commodatum are

A Consensual contracts
B. Real contracts
C. Solemn contracts
D. Formal contracts

52. Acceptance of an offer made by letter or telegram shall bind the offeror. From the time the

A. Offeree accepted the offer
B. Offeree sent his letter or telegram
C. Acceptance came to the knowledge of the offeror
D. Offeror made the offer

53. A contract where consent is given through mistake, violence, intimidation, undue influence
or fraud is

A. Rescissible
B. Voidable
C. Unenforceable
D. Void

70. The mortgagor will execute an instrument to transfer the ownership over the property mortgaged to the mortgagee if the debt is not paid at maturity is

A. Void
B. Voidable
C. Valid
D. Unenforceable

75. A, B and C are jointly liable to D in the amount of P9,000. D assigns the entire credit to A. In this case

A. The obligation is extinguished because of confusion
B. B and C will not be liable to A
C. a becomes the new creditor and may demand from B and C P4,500 each
D. A’s share in the obligation is extinguished because of confusion.

90. One is not a requisite needed in order that obligation shall be extinguished by loss or destruction of the thing due:

A. When the thing is lost without the fault of the debtor
B. When the thing lost is generic
C. When the thing is lost before the debtor has incurred in delay.
D. When the thing lost is specific

92. The obligation is demandable on the date of the obligation and shall continue to be in force up to the arrival of the day certain:

A. Resolutory period
B. Suspensive period
C. Indefinite period
D. Legal period