Civil Law Final Exam PDF

DolFINAL EXAM I. TRUE OR FALSE 1. Obligations and Contracts are identical. 2. The object of a contract of sale is its subject matter. 3. If a valid contract is novated to avoid contract, both contracts are considered void. 4. Without contract, a person cannot be liabl...

DolFINAL EXAM I. TRUE OR FALSE 1. Obligations and Contracts are identical. 2. The object of a contract of sale is its subject matter. 3. If a valid contract is novated to avoid contract, both contracts are considered void. 4. Without contract, a person cannot be liable to another. 5. The interpretation of obscure words or stipulations in a contract shall not favor the party who caused the obscurity. 6. Advertisements for bidders are simply inviations to make proposals, and the advertiser is not bound to accept the highest or lowest bidder, unless the contrary appears. 7. Contracts enter into during a lucid interval are valid. Contracts agreed in a state of drunkenness or during a hypnotic spell are binding. 8. Consent is the manifestation of the meeting of the offer and the acceptance upon the thing and the cause of the contract. 9. Acceptance made by the letter or telegram does not bind the offeror except from the time it came to his knowledge. 10. Dolo causante shall make a contract voidable. 11. Dolo incidente only obliges the person employing it to pay damages. 12. Unless it appears otherwise, a business advertisement is merely an invitation to make an offer. 13. The contracting parties may establish such stipulation, cluases, terms and coditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy. 14. A mere expression of an opinion does not signify fraud, unless made by an expert and the other party has relied on the former’s special knowledge. 15. Voidable contracts cannot be ratified. 16. Contracts entered into during lucid interval are voidable. 17. The action or defense for the declaration of the inexistence of void contract does not prescribe. 18. A contract which is the direct result of a previous illegal contract, is also void and inexistent. 19. There is intimidation when in order to wrest consent, serious or irresistible force is employed. 20. Misrepresentation made in good faith is not fraudulent but may constitute error. 21. Violence or intimidation shall not annul the obligation, if it was employed by a third person who did not take part in the contract. 22. Contracts take effect only between the contracting parties. 23. Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations, constitute fraud. 24. Contracts must bond both contracting parties; their validity or compliance cannot be left to the will of one of them. 25. Consensual contracts are not perfected until the delivery of the object of the obligation. 26. Real contracts are perfected by mere consent. 27. If the cause is not stated in the contract, it is presumed that it is unlawful. 28. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present.  29. When the real agreement of the parties are stated in a contract is void, the parties can ask for reforming of the instrument. 30. The statement of a false cause in contracts shall render them void, if it should not be proved that they were founded upon another cause which is true and lawful. 31. Cause is the essential or more proximate purpose which the parties have in view in entering into the contract. 32. Annulment is available only to persons who are obliged principally or subsidiarily. It is not available to third persons. 33. Qualified acceptance is considered a counter-offer. 34. An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance is conveyed. 35. When the offeror has allowed the offeree a certain period to accept, the offeror may withdraw the offer at any time. 36. The action for annulment on the ground of fraud shall be brought within four (4) years from the time of the perfection of contract. 37. Persons who are capable cannot allege the incapacity of those with whom they contracted. 38. If one party was mistaken and the other acted fraudulently or in such a way that the instrument does not show their true intention, the former may ask for the annulment of the instrument. 39. The action for rescission is subsidiary. It cannot be instituted except when there is no other legal means to obtain reparation for damages suffered. 40. Void contracts cannot be ratified. Neither can the right to set up the defense of illegality be waived. II. Multiple Choice 1. Which of the following is not a requisite for the validity of a contract? a. Consent b. Object c. Cause or Consideration d. Delivery of the thing 2. Before acceptance is conveyed, an offer becomes ineffective upon the: a. Death b. Civil interdiction c. Insanity d. All of the above 3. The stipulation in a contract to the effect that the debtor should remain as a servant in the house in the service of her creditor so long as she had not paid her debt is void because it is: a. Contrary to good custom b. Contrary to public policy c. Contrary to law and morality d. None of the above 4. Statement No. 1: If the contract is entered into without authority the contract is unenforceable. Statement No. 2: Contracts take effect only between the parties, their assigns and heirs, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law.  a. Both are true b. Both are false c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true. 5. Reluctantly and against her good sense and judgment, R entered into a contract for the delivery of 5 tables to C for a price of Php15,000. Contract is: a. Void b. Voidable c. Unenforceable d. Valid 6. G was appointed guardian of H, the latter being 15 years old. H sold her parcel of land in writing to I valued at Php100,000 for Php75,000, suffering a lesion by ¼ of the value. What is the status of the contract? a. Rescissible b. Voidable c. Unenforceable d. Void 7. Which is the least defective contract? a. Rescissible contract b. Voidable contract c. Unenforceable contract d. Void contract 8. Statement No. 1: The legal life of a contract begins from its perfection stage. While the death of the contract is the performance or fulfilment of the obligation. Statement No. 2: Misrepresentation made in good faith is not fraudulent but may constitute error and renders the contract voidable. a. Both are true b. Both are false c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true 9. A contract where both parties are incapable of giving consent is: a. Rescissible b. Voidable c. Unenforceable d. Void. 10. Three of the following contracts are void. Which is the exception: a. Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy b. Those which are absolutely simulated or fictitious. c. Those which cause or object did not exist at the time of the transaction; d. Those where both parties are incapable of giving consent to a contract. 11. S sold his car to B because of the intimidation of B. a. S can ratify the contract b. S can ratify the sale with the conformity of B c. B has the right to ask for annulment d. B has only 4 years to ask for annulment 12. Three of the following are rescissible, which is not? a. Sale of property under litigation made by defendant and without knowledge of the plaintiff and authority of the court  b. Those made to defraud creditors when the creditors has no other means to recover his claim c. Those agreed upon in representation of absentees, if the absentee suffers lesion by more than ¼ of the value of the property subject of the contract d. None of the above 13. Which of the following contracts is not required to appear in a public document? a. Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property, sales of real property or of an interest b. The cession, repudiation, or renunciation of hereditary rights c. Sale of immovable property d. None of the above 14. In order that a stipulation in favour of a third person in a contract would be valid and binding upon the parties thereto, three of the requisites are mentioned in the following enumeration. Which among them is not a requisite? a. There must be a stipulation in favour of a third person b. The contracting parties must have clearly and deliberately conferred a favour upon that third person c. The third person communicated his acceptance to the obligor before its revocation d. That there must be an existing agency between either of the contracting parties and the third person 15. A contract whereby the offeree is given by the offeror a certain period of time within which to buy or not to buy a certain thing for a certain price is called: a. Option contract b. Contract of sale c. Contract to sell d. Barter 16. Which of the following statement is false? a. Remission is essentially gratuitous b. Cession is a special mode of payments c. The liability of a guarantor is primary d. In alternative obligations, the debtor is required to perform only one prestation. 17. D is indebted to C for Php10,000. For the purpose of defrauding C, D sold his only parcel of land to X valued Php10,000. X had no knowledge of the intention of D. a. The contract between D and X is binding. b. The contract is voidable because D is in bad faith. c. The right of C is to rescind the contract because the transaction is fraudulent. d. The contract between D and X is rescissible. 18. In order to defraud C, his creditor, D by means of force compelled B to buy his (D’s) land. B has no knowledge of such fact. a. As to C, the contract is rescissible. b. As to B, the contract is voidable. c. Both of a and b. d. None of a and b. 19. X company bought out a competitor, Y, with a stipulation that Y should thereafter not engage in any business in the Philippines without the consent of X company. a. The stipulation is not valid because the parties as a rule have no absolute freedom to stipulate terms and conditions in a contract. b. The stipulation is not valid because this is against public policy. c. The stipulation is valid, only it will create a monopoly in trade. d. The stipulation is valid. It can be ratified. 20. D is indebted to C in the sum of Php10,000. For the purpose of avoiding the claims of C, D donated all his properties worth the same amount to X. a. The contract is absolutely simulated. b. The contract is rescissible. c. The contract is merely voidable. d. The contract is void. 21. Which of the following contracts is voidable? a. Those whose object is outside the commerce of men. b. Those which are absolutely fictitious. c. Those where one of the parties is incapacitated. d. Those which contemplate an impossible service. 22. Example No. 1: G, guardian of W, sold W’s house valued at Php50,000 for Php37,500 or a lesion by one-fourth of the value. Example No. 2: S sold his house valued at Php50,000 for only Php1,000 because S did not know the true value of the house. a. Both contracts are rescissible. b. Only No. 1 is rescissible. c. No. 2 is voidable because there is an error or mistake. d. Both contracts are valid and enforceable. 23. Company A bought out a competitor, Company B, with a stipulation that Company B should not thereafter engage in any business in the Philippines unless consented to and approved by Company A. a. The stipulation is defective but subject to ratification. b. The stipulation is valid because the parties are free to enter into any stipulation, terms and conditions such as this one. c. The stipulation is unenforceable as there was no showing that the sale was done in writing. d. The stipulation is void because it is contrary to public policy. 24. Statement No. 1: In voidable contracts, there is no deed to ratify the same before they can be considered valid. In unenforceable contracts, ratification is mandatory before they can be considered enforceable. Statement No. 2: there is undue influence if insidious words or machinations were employed by a party on the other just to obtain the latter’s consent, without which the latter would not have entered into the contract. a. Both are true b. Both are false c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true 25. Statement No. 1: Dolo incidente entitles the person against whom it was employed the right to seek the annulment of the contract. Statement No. 2: A stipulation pour autrui is an exception to the rule on relativity of contracts. a. Both are true b. Both are false  c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true 26. Example No. 1: W, 16 years old, sold his house valued at Php1million for Php50,000 or a lesion by more than ¼ of the value of said house. Example No. 2: S sold his house valued at Php1million for only Php400,000 because S did not know the true value thereof. a. Both examples are unenforceable b. No. 1 is rescissible; while No. 2 is unenforceable c. No. 2 is unenforceable d. Both contracts are binding 27. D forced C to lend him Php10,000. The promissory note is in writing. a. Contract remains to be valid. b. The contract is rescissible because the contract is fraudulent. c. The contract is void. d. C cannot demand payment from D because the contract is unenforceable. 28. On November 15, 2021, X entered into a contract with Y. On December 25, 2021, X discovered that fraud was committed at the he entered into the contract, a fraud that vitiated his consent. The action for annulment shall be bought: a. Within 3 years from the time of the fraud. b. Within 4 years from December 25, 2021. c. Within 4 years from the time X entered into the contract. d. On December 25, 2021. 29. Statement No. 1: If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the annulment of the instrument. Statement No. 2: The statement of false cause in contracts shall render them void, if it should not be proven that they were founded upon another caused which is true and lawful. a. Both are true b. Both are false c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true 30. When there is concurrence of offer and acceptance, there is: a. Payment b. Revocation c. Consent d. None of the above 31. Essential requisites of a contract. a. Consent b. Cause c. Subject d. All of them 32. Which of the following instruments is not subject to reformation? a. Simple donations inter vivos wherein no condition is imposed. b. Wills c. When the real agreement is void d. All of the above 33. Simulation of contract – absolute or relative. Relative when: a. Parties are not bound at all  b. The contract is void c. The parties conceal their true agreement d. None of the above 34. Which of the following contract is enforceable even if not reduced in writing: a. Contract executed by one of the parties in a contract b. Representation as to the credit of a third person c. Lease of immovable for a period longer than one year d. Agreement for the sale of immovable property 35. A intimidated B to marry his daughter. After a year, B would like to file action for annulment but could not do so because A was around to intimidate him. The marriage contract is – a. Rescissible b. Voidable c. Void d. Unenforceable 36. The following, except one, are the characteristics of a void or inexistent contract. Which is the exception? a. The defense of illegality of the contract is available to third persons whose interests are not directly affected. b. They are not subject to ratification. c. The right to raise defense of illegality cannot be waived. d. The action or defense for declaration of their nullity or inexistence of the contract does not prescribe. 37. The guardian of an insane person sells a house and a lot belonging to the latter, valued at Php100,000, to B, buyer for Php74,000 with the approval of the court. The contract is: a. Valid b. Rescissible c. Voidable d. Unenforceable 38. Statement No. 1: Advertisements for bidders are simply invitations to make proposals, and the advertiser is not bound to accept the hightest or lowest bidder, unless the contrary appears. Statement No. 2: A conferment of a direct benefit in a contract between two persons in favour of a third person who must accept such benefit before the same is withdrawn is known as stipulation pour autrui. a. Both are true b. Both are false c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true 39. Statement No. 1: The action for annulment on the ground of fraud shall be brought within 4 years from the time of the perfection of contract. Statement No. 2: If a valid contract is novated to a void contract, both contracts are considered void. a. Both are true b. Both are false c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true 40. Contract with a false cause is – a. Voidable b. Void c. Unenforceable  d. All of the above 41. Three of the following are void contracts. Which is the exception? a. Contracts where the cause is immoral. b. Contracts to prevent a known supported of a political rival from voting for his candidate for a valuable consideration. c. Contracts with valid consideration but with unlawful motives. d. Absolutely simulated contracts. 42. Which of the following contract is not valid? a. Mutual promise to marry entered into orally. b. Sale of immovable property orally entered into. c. One of the parties in a contract is incapable of giving consent. d. None of the above. 43. Type of defective contract that creates rights and impose no obligation, but are susceptible of ratification. a. Voidable contracts b. Unenforceable contracts c. Rescissible contracts d. Void contracts 44. Statement No. 1: An agreement which, by its terms and conditions, is to be performed within a year from the making thereof is enforceable even if entered into orally. Statement No. 2: A contract for the sale of necessaries (food and medicine) to a minor is a voidable contract. a. Both are true b. Both are false c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true 45. S owns an oil painting. In need of money, S sold the painting to B for Php1,000. After the sale, it was discovered that the painting was valuable and worth Php5,000. a. S may rescind the contract on ground of lesion or inadequacy of cause. b. S may rescind the contract on the ground of fraud. c. S may annul the contract on the ground of error. d. B is entitled to the benefit of the contract because it is valid and binding. 46. A contract where one of the contracting parties is incapable of giving consent is: a. Rescissible b. Voidable c. Unenforceable d. Void 47. S, a minor, owns a specific property valued at Php50,000. B, capacitated, by means of fraud induced S to sell his property to B for Php10,000 which S did so. The contract is in writing. a. The contract is binding from the start. b. The contract remains unenforceable because it falls under the Statute of Frauds c. The contract is rescissible because the ward suffered lesion by more than one-fourth of the value. d. The contract is void. 48. Must be in writing to be enforceable: a. Lease of land for 12 months b. Lease of car for 18 months  c. Both of a and b d. None of a and b 49. This kind of defective contract refers to that contract which is validly agreed upon because all the essential elements exists, but courts can nullify it when there is damage or prejudice to one of the parties or to a third person. Its enforcement would cause injustice by reason of some external facts. a. Voidable contract b. Void or inexistent contract c. Rescissible contract d. Unenforceable contract 50. S and B agree that S would sell and B would buy S’s radio for Php400, two years from the date of the agreement. At the end of the two-year period, S refused to deliver the radio although B was willing to pay. a. B can compel S to deliver because B is willing to pay the price. b. The contract falls under the Statute of Frauds, therefore unenforceable. c. Statute of Frauds is inapplicable because the price is less than Php500. d. The object is movable, oral contract is enforceable. 51. Which of the following contracts is voidable? a. Those where both parties are incapable of giving consent to a contract. b. Those undertaken in fraud of creditors where n the latter cannot in any other manner collect the claims due them. c. Those where consent is vitiated by mistake, violence, intimidation, undue influence or fraud. d. Those whose object is outside the commerce of men. 52. S was forced by X to sign a contract with B for the sale of specific property for Php10,000. C, a creditor of S, is prejudiced by the contract. What can S do? a. S may ask for annulment of the contract b. S may ask for rescission of the contract c. S may ask C to declare the contract voided d. C may ask for the annulment of the contract 53. In the preceding number, what can C do? a. C may ask for the rescission of the contract b. C may ask for the reformation c. C may ask S to declare the contract voided d. C may ask for the annulment of the contract 54. Statement No. 1: Ratification of voidable contract is necessary for its validity. Statement No. 2: One can ask for the annulment of a contract based on dolo incidente. a. Both are true b. Both are false c. No. 1 is true; No. 2 is false d. No. 1 is false; No. 2 is true 55. Example 1: S sold to B in a private instrument his land. Later, B wanted to have the sale registered, but registration requires a public instrument. In here, B may compel S to execute the needed public instrument. Example 2: S sold to B orally his specific land. After B paid S the price of the sale, he want to register the land in his name but he needed a public instrument of sale. In here, B may compel S to execute the needed public instrument. a. Both examples are false  b. Only 1 is true c. Only 2 is true d. Both examples are true. 56. Valid until annulled unless there has been a ratification. a. Rescissible contract b. Void contract c. Voidable contract d. None of the above 57. In three of the following defective contracts, ratification cleanses the defects. Which is the exception? a. Both parties are incapable of giving consent b. Sale of immovable property or interest orally entered into c. Sale of a piece of land thru an agent the authority is oral d. Contracts entered into by a person who has been given no authority 58. Statement No. 1: A threat to enforce one’s claim through competent authority, if the claims is just or legal, does not vitiate consent. Statement No. 2: Contracts entered into during a lucid interval are valid. Contracts agree to in a state of drunkenness or during a hypnotic spell are binding. a. Both are true b. Both are false c. No. is true; No. 2 is false d. No. 1 is false; No. 2 is true. 59. Statute of Frauds is applicable to: a. Partially executed contract b. Oral contract of loan when the amount involved is less than Php500 c. Contract not to be performed within a year from the making thereof d. All of the above 60. This principle means that contracts take effect only upon the contracting parties, their assigns, or successors-in-interest – a. Relativity of contracts b. Obligatoriness of contract c. Mutuality of contract d. Freedom of contract