Final Exam Key - Accounting (Obligations & Contracts)

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Questions and Answers

What is the term for a meeting of minds between two persons binding themselves to give something or render a service?

Obligation

Contract (correct)

Stipulation

Consent

Which type of contract cannot be ratified?

Those whose cause or object did not exist at the time of the transaction (correct)

Contracts with unqualified parties

Voidable contracts

Unauthorized contracts

If X discovered fraud on February 10, 1987, when must he file for annulment?

Within four years from February 10, 1987 (correct)

On February 10, 1987

Within four years from entering the contract

Within three years from the time of discovering the fraud

What are the essential components of a contract that are crucial for its existence called?

Essential elements Signup and view all the answers

What type of contract is described as one that can stand by itself?

Principal contract Signup and view all the answers

Which kind of contract lacks any special categorization?

General contract Signup and view all the answers

Which circumstance would render a contract voidable?

Involvement of intoxicated party Signup and view all the answers

Which option describes a contract that cannot be enforced by law?

Unenforceable contract Signup and view all the answers

When the object of the contract is outside the commerce of man, the contract is considered:

Void Signup and view all the answers

For fraud to make a contract voidable, which of the following is true?

It should be serious and parties must be in pari delicto Signup and view all the answers

A contract entered into during a lucid interval is classified as:

Perfectly valid Signup and view all the answers

Which of the following may not be a valid object of a contract?

Impossible things or services Signup and view all the answers

What is the status of a contract made by unemancipated minors?

It is voidable at the option of the minor Signup and view all the answers

Which statement best describes a rescissible contract?

It is valid but may be renounced by one party Signup and view all the answers

In which scenario is a contract rendered unenforceable?

When the agreed terms are impossible to perform Signup and view all the answers

What is a necessary condition for a voidable contract?

The consent of one party must be subjected to error Signup and view all the answers

What was the date on which the contract between S and B was perfected?

March 21 Signup and view all the answers

Which of the following statements about the delivery of the object in a contract is correct?

Delivery is required for the perfection of a contract. Signup and view all the answers

What is the essential reason for a party entering into a contract?

To establish mutual obligations between parties. Signup and view all the answers

What is the status of the contract between S and B regarding the sale of eggs?

Valid because future things may be the object of contracts Signup and view all the answers

Which statement correctly describes the nature of a relatively simulated contract?

They are considered void regardless of consent. Signup and view all the answers

Which situation describes a voidable contract?

Consent is vitiated by mistake, fraud, violence, intimidation or undue influence Signup and view all the answers

What does the principle that contracts take effect only between the contracting parties signify?

Only parties involved in the contract can enforce its terms. Signup and view all the answers

What happens to a contract if the motive of a party is illegal?

The contract is void altogether. Signup and view all the answers

In which scenario can a contract be rescissible?

When both parties consent but one suffers significant loss Signup and view all the answers

Which statement is true regarding the obligations of parties in a contract of loan and mortgage?

The parties are bound even if the loan is not used Signup and view all the answers

When was the acceptance of the offer from S to B made?

On March 20 Signup and view all the answers

If S stated that B's acceptance must be sent by registered mail, what does this imply about the mode of acceptance?

Written communication is necessary for acceptance. Signup and view all the answers

Which of the following statements correctly applies to contracts affected by fraud?

They can be voidable at the option of the defrauded party Signup and view all the answers

When can a contract be declared unenforceable?

When the contract is not written down Signup and view all the answers

What type of contract was established between A and B on September 1, 1987?

Nominate contract Signup and view all the answers

Can A rescind the contract for nonpayment of the price?

A can rescind the contract for nonpayment of the price Signup and view all the answers

What condition makes a contract void?

The object of the contract is illegal Signup and view all the answers

Which of the following entails a common misconception regarding contracts?

Oral contracts cannot be enforced Signup and view all the answers

In Case 1, why might the court not allow A to recover the advance payment?

Because of the nature of the agreement Signup and view all the answers

Which principle indicates that contractual obligations must bind both parties?

Mutuality of contract Signup and view all the answers

What legal principle allows either party in a voidable contract to file for annulment?

Consensuality of contract Signup and view all the answers

In Case 2, what is the status of the contract if A uses force to compel B to marry him?

The contract is voidable at the option of B Signup and view all the answers

What does the principle of relativity of contract state?

Only parties involved have rights under the contract Signup and view all the answers

What was A's action regarding the sugar delivery on the scheduled date?

A agreed to deliver late but did not receive payment Signup and view all the answers

What is the nature of a contract that is unenforceable due to lack of written form?

It is still valid but unenforceable. Signup and view all the answers

What legal status does a contract have if it involves a lesion of more than ¼ of the value?

Rescissible Signup and view all the answers

Which type of contracts can be enforced without needing to be in writing?

Contracts that are partially executed Signup and view all the answers

Which of the following scenarios illustrates undue influence?

A guardian pressures a ward to sell valuable land at a low price. Signup and view all the answers

Under which condition could a guardian’s contract be considered void?

When the ward is unable to give consent due to age. Signup and view all the answers

What must be true for a contract to be classified as unenforceable?

It must not meet the legal requirements set forth for specific types of agreements. Signup and view all the answers

Which of the following represents intimidation in contract law?

Threatening someone with physical harm if they do not comply. Signup and view all the answers

What is the main characteristic of contracts that apply to executory agreements?

They are unenforceable if not executed appropriately. Signup and view all the answers

Signup and view all the answers

Study Notes

BL Final Exam Answers Key (Accounting - Mindanao State University)

The document is an answer key for a final examination in Accounting.
The exam likely covered Obligations and Contracts.
It contains multiple choice questions along with answers, and explanations for those questions.
Questions and answers pertain to contract law principles.
Key topics covered include essential elements of a contract, validity/invalidity of contracts, rescissible/voidable contracts, and various contract types.
The document provides details on circumstances under which contracts might be considered void, voidable, or enforceable.
It details various legal concepts like fraud, undue influence, and mistake in contracts.
Cases for each question help clarify concepts.
Information about time limits (relevant statute of limitations) is also included in the key.

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Description

This answer key provides solutions for the final examination in Accounting at Mindanao State University, focusing on Obligations and Contracts. It includes multiple choice questions with detailed explanations on various aspects of contract law, such as validity, types of contracts, and legal concepts like fraud and undue influence.