The Road to Flat One

Which is the least defective contract?

• A. Rescissible contract

• B. Voidable contract

• C. Unenforceable contract

• D. Void Contract

What 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 to one of the parties or to a third person?

• A. Rescissible contract

• B. Voidable contract

• C. Unenforceable contract

• D. Void Contract

Girl was appointed as guardian of Boy, the latter being 16 years old. Boy sold his parcel of land in writing to be valued to Stranger at P100,000 for P75,000, suffering lesion by exactly ¼ of the value.

What is the status of the contract?

• A. Rescissible

• B. Unenforceable

• C. Enforceable

• D. Voidable

Which of the following contract is not rescissible?

• A. Those made by guardians when their wards suffer lesion by more than ¼ of the value of the things which are the object thereof.

• B. Those where one of the parties is incapable of giving consent to a contract

• C. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them

• D. Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority

Contract 1: G, guardian of W, sold W’s house valued at P50,000 for 37,500 or a lesion by ¼ of the value.

Contract 2: S sold his house valued at P50,000 for only 1,000 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 a mistake

• D. Both contracts are valid and enforceable

Wendy, a 16 year old, sold her house valued at P1 M for P50,000 or a lesion by more than ¼ of the value of the said house.

What is the status of her contract?

• A. Unenforceable

• B. Rescissible

• C. Voidable

• D. Valid and Enforceable

R, the representative of A, an absentee sold the corn with a value of P30,000 and the palay with a value of P50,000, harvested from A’s agricultural farm, for a total price of P50,000. A, whose domicile was subsequently known, was informed of the sale made by G.

May A seek rescission?

• A. No for the contract is valid and binding.

• B. Yes for it is rescissible

• C. Maybe. Some facts are missing

• D. None of the above.

Statement 1: If the cause is not stated in the contract, it is presumed to be unlawful.

Statement 2: The action for rescission is subsidiary. It cannot be instituted when there is no other legal means to obtain reparation for damages suffered.

• A. Both are true

• B. Both are false

• C. 1 is true; 2 is false

• D. 1 is false; 2 is true

S (Seller) Sold his only property, a parcel of land with an area of 3,000 square meters, to B (Buyer) to defraud C, a creditor of S.

C may rescind the contract to what extent?

• A. Always to the whole contract

• B. Only to cover damages

• C. More than what is sufficient to cover damages

• D. None of the above

Mice is indebted to Cat for P10,000. For the purpose of defrauding Cat, Mice sold his only “cheesy hotdog” to Dog for P10,000. Dog had no knowledge of the intention of Mice.

What is the status of the contract?

• A. The contract between Mice and Dog is binding.

• B. The contract is voidable because Mice acted in bad faith

• C. The right of Cat is to rescind the contract because the transaction is fraudulent

• D. The contract between Mice and Dog is rescissible