1. The contract must bind both contracting parties, its a.

a. Will you buy this watch I am wearing for P1,000? marriage in consideration of P1,000,000
validity or compliance cannot be left to the will of one b. I am willing to buy your car. b. An agreement whereby A is to render service as a
of them, and this is c. I will consider the sale of my land to you for servant to B without compensation as long as A
a. mutuality of contracts P100,000. has not paid him debt
b. relativity of contracts d. Business advertisements of things for sale. c. A stole the car of B. Later they entered into a
c. freedom of contracts 8. A defective contract where damage or lesion is contract whereby B would not prosecute A in
d. obligatory force of contracts essential is: consideration of P1000,000
2. By this principle, contracts take effect only upon the a. rescissible d. A stipulation in a contract of lease whereby the
contracting parties, their assigns or successors in b. unenforceable landlord can go to court to eject the tenant in case
interest c. voidable of failure of the latter to pay the rent agreed upon
a. mutuality of contracts d. void 14. A, with a violence in her eyes, intimidated her
b. relativity of contracts husband B to sell his exclusive property to her. The
c. freedom of contracts 9. The contracts entered into by the persons who cannot contract to sell is
d. obligatory force of contracts give consent is: a. rescissible c. voidable
3. Three of the following are essential elements of the a. void ab initio, because actually there is no consent b. unenforceable d. void
contract, except: b. unenforceable only because the contract maybe 15. Which of the following are rescissible contracts?
a. cause of the obligation, which is established ratified a. Those made by guardians when their wards suffer
b. consent of the contracting parties c. rescission because of the damage caused to the lesion by more than ¼ of the value of the things
c. motive of the parties person incapacitated which are the object thereof.
d. object certain, which is the subject matter of the d. voidable as there is consent although vitiated or b. Those where one of the parties is incapable of
contract defective giving consent to a contract.
4. A contract which does not have any specific name 10. A defective contract because it is entered into in the c. Those that do not comply with the Statute of
name or designation in law: name of another without or in excess of authority, or Frauds.
a. nominate contract it is verbal is: d. Those which are absolutely simulated or
b. innominate contract a. unenforceable fictitious.
c. commutative contract b. void
d. aleatory contract c. voidable 16. Which of the following are void contracts?
5. The warranty against hidden defects in a contract of d. rescissible a. Those made by guardians when their wards suffer
sale is an example of: 11. A defective contract because it is prohibited by law is: lesion by more than ¼ of the value of the things
a. natural elements a. void which are the object thereof.
b. accidental elements b. rescissible b. Those where one of the parties is incapable of
c. essential elements c. voidable giving consent to a contract.
d. original elements d. unenforceable c. Those that do not comply with the Statute of
6. The following cannot give consent to a contract, 12. The following are still valid contracts except: Frauds.
except: a. void d. Those which are absolutely simulated or
a. minors, except sale of necessaries in life b. voidable fictitious.
b. insane persons c. unenforceable 17. Which of the following are unenforceable contracts?
c. demented d. rescissible a. Those made by guardians when their wards suffer
d. minors who represent themselves as of legal age 13. The following are void contracts, except lesion by more than ¼ of the value of the things
to one in good faith. a. A contract whereby X promised to give as the which are the object thereof.
7. Which of the following is a definite offer? common-law-wife or Y without the benefit or b. Those where one of the parties is incapable of
 giving consent to a contract. 3. The contemporaneous & subsequent acts of the to give something or to render some service.
c. Those that do not comply with the Statute of parties shall be principally considered in order to
Frauds. ascertain their intention, A) Contract
d. Those which are absolutely simulated or 4. Contracts shall not be understood to comprehend B) Obligation
fictitious. things & cases distinct or different from that intended C) Condition
18. Which of the following are voidable contracts? by the parties. D) Period
a. Those made by guardians when their wards suffer 5. If some stipulation of the contract has several
lesion by more than ¼ of the value of the things meanings, it shall bear that import which would 2. It is the meeting of the minds between parties on
which are the object thereof. render it effectual. subject matter and cause of contract.
b. Those where one of the parties is incapable of 6. The various stipulations of a contract shall not be
giving consent to a contract. interpreted as a whole. A) Contract
c. Those that do not comply with the Statute of 7. Omission or deficiency in a contract may be filled by B) Consent
Frauds. custom or usage of the place. C) Obligation
d. Those which are absolutely simulated or D) Condition
fictitious. 8. Obscure words or stipulations in a contract shall
19. Sale upon credit by an insolvent debtor and evidence favor the party who caused the obscurity. 3. This takes place upon the concurrence of the
of large indebtedness are some of the circumstances 9. Doubts in gratuitous contracts shall be settled in such essential elements of the contract:
that have been denominated by our courts as: a way that the least transmission of rights & interests
a. badges of fraud shall prevail. A) negotiation
b. badges of intimidation 10. Doubts in onerous contracts shall be settled in favor B) perfection
c. badges of violence of the greatest reciprocity of interests. C) consummation
d. badges of mistake D) principal
20. The rule which requires that certain agreements or ENUMERATION
some note or memorandum thereof, shall be in 4. This covers the period from the time the prospective
writing & subscribed by the party charged or by his 30. – 33. Classification of contracts according to contracting parties indicate interest in the contract
agents; otherwise such agreements shall be perfection. to the time the contract is concluded or perfected.
unenforceable by action because evidence of the same 34. – 36. What may be the object of a contract.
cannot be received without the writing, or a 37. – 39. Characteristics of consent. A) Principal
secondary evidence of its contents: 40. – 44. Vices of consent. B) Perfection
a. Statute of Frauds 45. – 48. Kinds of defective contracts. C) Consummation
b. Statute of Intimidations 49. – 50. Kinds of fraud in contracts. D) Negotiation
c. Statute of Mistakes
d. Statute of Limitations things rights services consensual real formal 5. It means not only the delivery of money but also the
intelligent voluntary conscious dolo causante dolo performance of an obligation.
TRUE OR FALSE: incidente fraud intimidation violence undue
Write TRUE if the statement is true; write FALSE if the influence mistake rescissible voidable unenforceable A) Payment
statement is false. void B) Loss of the thing due
1. If the terms of a contract are clear, the literal meaning C) Remission
of its stipulations shall control. D) Merger
2. The words of the contract shall prevail over the 1. It is the meeting of the minds between two persons
evident intention of the parties. whereby one binds himself with respect to the other 6. It is essentially gratuitous, and requires the acceptance
by the obligor. and the acceptance upon the thing and the Pedro will pay Petra P200 Million pesos as purchased
cause which are to constitute the contract. price and Petra on the other hand will deliver to Pedro
E) Payment ______2. Acceptance may be express or implied. the Title of the Hacienda on October 25, 2015 and then
F) Loss of the thing due ______3. A void contract can be cured by ratification or by signed it. The written agreement was kept by Pedro
G) Remission or condonation prescription. inside his Baul.
H) Merger ______4. Unenforceable contracts can be ratified.
______5. The action for annulment of contracts shall be A) Is the contract valid? Why or why not?
7. Which of the following is NOT a limitation of a contract. brought within 10 years. B) When is a contract void?
______6. A contract is void if one of the parties is
A) Law incapacitated or the consent was vitiated.
B) Morals ______7. Lesion is one of the grounds of rescissible
C) Obligation contracts.
D) Public policy ______8. Void contract produced no effect.
______9. Unenforceable contract is a defective contract.
8. It is perfected by mere consent or upon the meeting of ______10. There is intimidation when in order to wrest
the minds upon the object and consideration of the consent, serious or irresistible force is employed.
contract. ______11. Unemancipated minors can give consent.
______12. Minors are persons below 18 years old.
A) Consensual contracts ______13. If one party is a minor and the other is not, the
B) Real contracts contract is unenforceable.
C) Formal contracts ______14. If both parties are minors, the contract is
D) Solemn contracts voidable.
______15. The parties to a contract may ask somebody else
9. Which of the following is NOT a real contract. to represent them.

A) Deposit III. Enumeration.

B) Pledge
C) Commodatum 1-3. Essential elements of a contract
D) Contract of sale 4-9. Grounds for extinguishment of obligation
10-13. Classification of defective contracts
10. It is a contract that perfected upon delivery. 14-15. Give two void or inexistent contracts

A) Consensual IV. Essay.

B) Real
C) Formal Pedro, 15 years old rich kid, approached Petra, 16
D) Solemn years old, to buy the latter’s Hacienda consisting of 2,000
square meters in order for him to build his dream
II. Write T if the statement is True and F if the statement vacation house. Petra who is in need of money for her
is False. college education in New York City agreed to the price
offered by Pedro in the amount of P200 Million Pesos.
______1. Consent is manifested by the meeting of the offer The two wrote in a clean bond paper their agreement that