1.

The following are the characteristics of contracts, except

a. Obligatory force which means that the contractual provisions constitute the law between
the parties.
b. Mutuality which means it is binding only upon the contracting parties and their successors
such as heir or assignees.
c. Liberty which means that the parties may establish such stipulations, clauses, terms, and
conditions as they may deem convenient provided they are not contrary to law, morals,
good customs, public order or public policy.
d. Illegality which means that contracts should be contrary to law.
2. The following are the types of elements of a contract, except
a. Essential elements which refer to those which are required in order for a contract to exist
such as consent of the contracting parties, object certain which is the subject matter of the
contract and cause of the obligation which must be established. These elements may not be
waived by the parties.
b. Natural elements which already exist in certain contract unless set aside or suppressed by
the parties such as warranty against eviction and warranty against hidden defects in a
contract unless set aside or suppressed by the parties such may be waived by parties as long
as the waiver is made in good faith.
c. Accidental elements which do not normally exist in a contract unless stipulated by the
parties such as terms of payment, interest rate or place of payment.
d. Alien elements which refer to those items which do not exist in earth.
3. Which of the following statements best describes a real contract?
a. It is a contract perfected by mere consent such as contract of lease and contract of sale.
b. It is a contract perfected by the delivery of the object of the contract such as contracts of
deposit, of pledge, of loan and of commodatum.
c. It is a contract which must be in the form provided by law for their perfection such as
contract of donation, involving immovable property, together with the acceptance by the
done, must be in public instrument to be valid.
d. It is a contract involving delivery of real property.
4. Which of the following statements best describes an onerous contract?
a. It is a contract whereby there is an exchange of valuable consideration such as contracts of
sale and barter. For each contracting party, the cause is the prestation or the promise of a
thing or service by the other.
b. It is a contract whereby one party receives no equivalent consideration such as contracts of
donation and commodatum. These contracts are referred to as contracts of pure
beneficence, the cause of which is the liberality of the benefactor.
c. It is a contract whereby the cause here is the service or benefit remunerated.
d. It is a contract wherein there is no cause or consideration.
5. Which of the following statements best describes principal contract?
a. It is a contract whose existence depends upon another contract such as contracts of pledge,
of chattel mortgage, antichresis, guarantee or real estate mortgage which is dependent
upon a principal contract such as loan.
 b. It is a contract which serves as a means by which other contracts may be entered into such
as agency and partnership.
c. It is a contract that can stan dy by itself such as contracts of sale or loan.
d. It is a contract without any name under the Civil Code or special law.
6. Which of the following statements best describes aleatory contract?
a. It is a contract whereby the parties give equivalent values such as sale and barter hence,
there is real fulfillment.
b. It is a contract whose fulfillment depends upon chance such as insurance contract.
c. It is a contract where only one of the parties is obligated to give or to do such as
commodatum and gratuitous deposit.
d. It is a contract where both parties ae required to give or to do something such as sale and
barter and it may be reciprocal or non-reciprocal.
7. Which of the following contracts best describes auto-contract?
a. It is a contract which has to be performed.
b. It is a contract wherein one person contracts with himself.
c. It is a contract wherein one party has already prepared form of a contract, containing the
stipulations he desires, and he simply asks the other party to agree to them if he wants to
enter into the contract.
d. It is a contact that has not yet been performed.
8. The following are the innominate contracts, except:
a. Do ut des. (I give that you may give.)
b. Do ut facias. (I give that you may do.)
c. Facio ut des. (I do that you may give.)
d. Facias ut des. (I do not do that you may not do.)
9. The following are the rules that shall govern innominate contracts, except:
a. The stipulation of the parties.
b. The provisions of Obligations and Contracts.
c. The customs of the place.
d. The provisions of Corporation Code.
10. Which of the following statements pertaining to the stages of a contract refers to preparation or
conception stage?
a. It involves a preliminary negotiations and bargaining, discussion of terms and conditions,
with no arrival yet of a definite agreement.
b. It is the point when there is meeting of minds between the parties on a definite subject
matter and valid cause.
c. It is the point when the contract have been fulfilled resulting in its accomplishment.
d. None of the above.
11. Two persons agreed in a contract which provides for the concealment of a public offense or the
suppression of evidence or the stifling of a criminal prosecution for a certain consideration. Is
the stipulation valid?
a. Yes because mutuality of contract provides that its validity or compliance cannot be left to
the will of one of them.
 b. Yes because the obligatory force of a contract bind both contracting parties.
c. No because the stipulation is contrary to law and public policy.
d. No because the stipulation is contrary to mutuality of contract.
12. When does the acceptance made by letter or telegram bind the offerer?
a. From the time he sent his offer.
b. From the time the acceptance was sent by the other party.
c. From the time the acceptance came to the knowledge of the offerer.
d. From the time the parties signed the written contract.
13. A offers his watch to B for P500. B said that he will buy it for P450. Is the contract perfected?
a. Yes because the consent is manifested.
b. Yes provided B will pay for P450.
c. No because there is no delivery of the watch.
d. No because a qualified acceptance constitutes a counter offer.
14. The following statements concerning consent are correct except:
a. An acceptance may be expressed or implied.
b. The person making the offer may fix the time, place and manner of acceptance, all of which
must be complied with.
c. An offer made through an agent is accepted from the time acceptance is communicated to
his principal.
d. When the offerer has allowed the offeree’s certain period to accept, the offer may be
withdrawn at any time before acceptance by communicating such withdrawal, except when
the option is founded upon a consideration, something paid or promised.
15. The following persons cannot give consent to a contract, except:
a. Unemancipated minors.
b. Insane except during lucid interval.
c. Demented persons.
d. Deaf-mutes who do not know how to write Blind persons who cannot speak.
16. What is the status of a contract agreed to in a state of drunkenness or during a hypnotic spell?
a. Voidable
b. Rescissible
c. Unenforceable
d. Null and void
17. Which of the following vices of consent if committed by a third person who did not take part in
the contract may annul or make the contract voidable at the judicial discretion of the court?
a. Fraud and undue influence
b. Intimidation and violence
c. Fraud, undue influence and violence
d. Intimidation, violence and undue influence.
18. The following types of mistakes may result to invalidity or voidability of a contract, except:
a. Mistake which should refer to the substance of the thing which is the object of the
contract.
 b. Mistake which should refer to those conditions which have principally moved or both
parties to enter into the contract.
c. Mistake as to identity or qualifications of one of the parties wherein such identity or
qualifications have been the principal cause of the contract.
d. Mutual error as to the legal effect of an agreement when the real purpose of the parties
is frustrated.
e. Simple mistake of account.
19. The following errors do not vitiate consent, except
a. Error as to the solvency of the other party.
b. Effort as to the motive of the party.
c. Error as to estimates.
d. Effort as to basis of contract.
20. A and B entered into a contract of sale of a piece of land, not knowing that the said property has
already been the object of another sale under different terms and conditions, by their duly
representatives. What is the status of the second contract?
a. Rescissible
b. Voidable
c. Unenforceable
d. Null and void
21. One of the parties agrees to an upset price in a contract of sale with full knowledge of the
favorable or unfavorable possibilities with respect to the essential circumstances of the
contract. What is the status of the contract?
a. Voidable because there is mistake in the upset price.
b. Null and void because upset price is prohibited by law in any type of contract.
c. Valid and without defect because there is no mistake if the party alleging it knew the
doubt, contingency or risk affecting the object of the contract.
d. Unforceable because it violates statute of frauds.
22. Which of the following statements is incorrect?
a. Violence or intimidation shall annul the obligation, although it may have been employed
by a third person who did not take part in the contract.
b. Failure to disclose facts, when there is duty to reveal them, as when the parties are
bound by confidential relations, constitutes fraud.
c. A mere expression of an opinion does not signify fraud, unless made by an expert and
the other party had relied on the former’s special knowledge.
d. The usual exaggerations in the trade, when the other party had an opportunity to know
the facts, are in themselves fraudulent.
23. The following are the requisites of fraud to vitiate a consent, except
a. It must have been employed by one of the contracting parties only.
b. It must have induced the other party to enter into the contract.
c. It must have been serious
d. It must not result to any damage or injury to the party seeking annulment.
24. A and B entered into a contract of sale. In the performance of the contract, A committed fraud.
What is the remedy of B?
a. To ask for annulment of contract because there is dolo incidente.
b. To ask for damages because there is dolo causante.
c. To ask for damages because there is dolo incidente.
d. To ask for annulment of contract because there is dolo causante.
25. The following statements are correct, except.
a. Misrepresentation by a third person does not vitiate consent, unless such
misrepresentation has created substantial mistake and the same is mutual.
b. Misrepresentation made in good faith is not fraudulent but may constitute error.
c. In order that fraud may make a contract voidable, it should be serious and should not
have been employed by both contracting parties.
d. Incidental fraud may entitle the injured party for annulment of contract.
26. What is the effect when both parties use fraud reciprocally?
a. Any of he parties may ask for annulment of contract.
b. The contract is voidable for both parties.
c. The fraud of one compensates that of the other, and neither party can ask for
annulment of the contract because they are in part delicto.
d. Any of the parties may ask for damages.
27. What is the status of absolutely simulated or fictitious contract?
a. Voidable.
b. Null and void which is subject to action for declaration of nullity.
c. Unenforceable
d. Rescissible.
28. What is the remedy of the parties in case of relatively simulated contract?
a. Ask for annulment of contract.
b. Ask for declaration of nullity of contract.
c. Ask for reformation of instrument.
d. Ask for rescission of contract.
29. The object of a contract is its subject matter or it is the thing, right or service which is the
subject matter of the obligation, arising from the contract. The following are the requisites of
an object of a contract, except:
a. The object must be within the commerce of men.
b. It must be licit or not contrary to law of men.
c. It must be impossible.
d. It must be determinate as to its kin.
30. The following objects may be considered an object of a contract, except:
a. Future things
b. Hereditary rights
c. All rights which are not intransmissible
d. Future inheritance
e. All service not contrary to law, morals, good customs, public order of public policy.
31. Before Don Pedro dies, his heirs enter into an agreement for the partition of the estate of their
father. What is the status of the contract.
a. Voidable.
b. Null and void because the subject matter is future inheritance.
c. Unenforceable
d. Rescissible
32. After Don Selmo died, one of the heirs entered into a contract renouncing his right to inherit.
What is the status of the contract?
a. Valid and binding because the subject matter is a hereditary right.
b. Null and void
c. Unenforceable
d. Rescissible
33. Which of the following statements is incorrect?
I.- Contracts without cause or with unlawful cause produce no effect whatever and are
considered null and void.
II- Contracts without motive or with unlawful motive produce no effect whatever and are
considered null and void.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
34. As a general rule, contracts shall be obligatory, in whatever form they may have been entered
into, provided all requisites for their validity are present. However, when the law requires that a
contract be in some form in ordr that it may be valid or enforceable, or that a contract be
proven in a certain way, the requirement is absolute and indispensable. The following contracts
are required to be in certain form to be valid also known as formal contracts or solemn
contracts, except:
a. Negotiable instruments must be made strictly in the form provided by the Negotiable
Instrument Law to be valid in order to be considered negotiable.
b. Contract of marriage must have marriage license and authority of solemnizing officer.
c. Donations of personal property in excess of P5,000 must be made and accepted in
writing to be valid.
d. Donations of real property must be made and accepted in public instruments to be
valid.
e. The antichretic agreement including the principal and interest of the contract of loan
must be specific in writing to be valid for the contract of antichresis to be valid.
f. The agreement to pay interest in a contract of loan must be in writing to be valid.
g. Registration of chattel mortgage is necessary for its validity.
h. A contract of partnership to which real property or real rights are contributed must be
in a public instrument, with an inventory of real attached there, to be valid.
i. Sale of a piece of land by the agent in the name of the principal, the authority of the
agent must be in writing to sell the land must be in writing to be valid.
 j. Sale of community/conjugal property by one of the spouses, there must be authority
given by the other spouse to the selling spouse.
k. The lease of personal property for a period longer than one year should be in writing to
be valid.
35. Which of the following is a valid agreement or stipulation?
a. Oral agreement to pay 2% per month interest based on the principal amount of the
loan.
b. Oral contract of antichresis.
c. Written contract of sale of a piece of land by an agent in the name of the principal
wherein the agent has oral authority to sell the land.
d. Oral contract of partnership wherein the delivery of money will be done after 5 years.