Contracts take effect only between the contracting parties, their assigns and heirs except in cases where obligations and rights arising from the contracts are not transmissible by their nature, or by stipulation or by provision of law. This principle is known as:

One of the following is not a real contract:

On May 1, 2002, S offered to sell a specific car to B for P500,000.00. B sent his letter of acceptance to S on May 8, 2002. On May 10, 2002, however, S died in a vehicular accident and his secretary received the letter or acceptance on May 12, 2002 unaware that S had already died.

Mistake in three of the following will make a contract voidable. Which one will not?

It is the employment of serious or irresistible force to obtain consent.

It is present when one of the contracting parties is compelled by a reasonable and wellgrounded fear of an imminent and grave evil upon his person or property or upon the person or property of his spouse, descendants, and ascendants to obtain consent:

On February 11, 2003, Perfecto offered to sell his house and lot to Reynaldo for P1,500,000.00. Perfecto told Reynaldo that he was giving Reynaldo up to February 28, 2003 to decide whether or not to buy the house and lot. Reynaldo accepted the option but did not give anything to Perfecto to support the option given to him. On May 20, 2003, Perfecto found another buyer who was ready to buy the house and lot for P2,000,000.00. Perfecto wants to ask you whether he can still withdraw the offer he made to Reynaldo. Decide.

Elements that accompany certain contracts unless set aside or suppressed by the parties, are known as:

Undue influence shall annul the obligation, although it may have been employed by a third person who did not take part in the contract.

The contract is void if the cause is not stated in the contract.

The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient.

Acceptance by letter or telegram binds the offeror from the time the letter or telegram is sent.

An offer made through the agent is accepted from the time acceptance is communicated to the agent.

There is violence when in order to wrest consent, serious or irresistible force is employed.

Failure to disclose facts constitutes fraud.

Real contracts, such as mutuum, pledge and guaranty are not perfected until the delivery of the object of the obligation.

Contracts of pure beneficence are contracts without cause

If the cause is not stated in the contract, it exists and is lawful.

A contract may be voidable even though there may have been no damage to the contracting parties.

The action or defense for the declaration of the inexistence of a contract prescribes in 10 years

Acts and contracts which have for their objects the creation transmission, modification or extinguishment of real rights over immovable property must be in a public instrument to be valid and binding.

Lesion or inadequacy of cause shall not invalidate a contract, unless there has been fraud, mistake or undue influence.

An offer may become ineffective upon insolvency of either party before acceptance is conveyed even if the insolvency is not judicially declared.

A contract of sale entered into between spouses is void.

Contracts must bind both parties, its validity or termination cannot be left to the will of one of them.

Unenforceable contracts are susceptible of ratification.

Contracts are perfected by mere consent.

Ratification requires conformity of the contracting parties.

Mistake as to the qualifications of one of the parties vitiates consent.

Contracts take effect between their parties, assigns and heirs.

A mere expression of an opinion does not signify fraud.

Incidental fraud invalidates a contract.

In contracts of pure beneficence, the cause is the liberality of the benefactor.

Contract of lease for 2 years is unenforceable if not in writing.

An action for rescission of a contract entered into to defraud a creditor will prosper 4 years from actual discovery of fraud.

Undue influence shall annul the obligation, although it may have been employed by a third person who did not take part in the contract.

Rescission shall be only to the extent necessary to cover the damage caused by a contract in fraud of a creditor.

A conveyance is presumed to be in fraud of creditor if made by a debtor after a suit is filed against him while it is pending.

A contract which is void on its face cannot be the subject of reformation.

Once a contract is perfected, though the same is not in the form required by law, the contracting parties may compel each other to observe that form.

Lesion or inadequacy of cause shall not invalidate a contract, unless there has been fraud, mistake or undue influence.

The cause in a lucrative contract is the liberality of the benefactor.

An offer may become ineffective upon insolvency of either party before acceptance is conveyed even if the insolvency is not judicially declared.

An offer may become ineffective upon insolvency of either party before acceptance is conveyed even if the insolvency is not judicially declared.