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CONTRACTS

Total questions: 120

Worksheet time: 3hrs 40mins

Name
Class
Date
1.

Match the following

a)

 The parties do not intend to be bound at all.

1.

Absolutely simulated contract

b)

 Its existence depends upon another contract.

2.

Accessory contract

c)

 They refer to the stipulations agreed upon by the contracting parties such as terms of payment, interest rate, etc.

3.

Accidental elements of a contract

d)

A contract whose fulfillment depends upon chance.

4.

Aleatory contract

e)

The action that is brought to set aside a voidable contract.

5.

Annulment

2.

Match the following

a)

Both parties are required to perform reciprocal prestations.

1.

Bilateral contract

b)

The essential reason of a party in entering into a contract.

2.

Cause

c)

An accessory penalty which deprives a person during the term of his sentence of the rights of parental authority, of guardianship, of inarital authority, of the right to manage his property and of the right to dispose of such property by any act or conveyance inter vivos.

3.

Civil interdiction

d)

A contract where the parties give equivalent values, hence, there is real fulfillment.

4.

Commutative contract

e)

A contract that is perfected by mere consent.

5.

Consensual contract

3.

Match the following

a)

The manifestation of the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract.

1.

Consent

b)

The terms of the contract have been fulfilled resulting in its accomplishment.

2.

Consummation of contract

c)

A meeting of minds between two persons whereby one binds himself with respect to the other to give something or to render some service.

3.

Contract

d)

Elements without which a contract would not exist.

4.

Essential elements of a contract

e)

The principle that contracts are perfected by mere consent.

5.

Consensuality of contracts

4.

Match the following

a)

The use of insidious words or machinations to obtain consent.

1.

Fraud

b)

The cause thereof is the liberality of the benefactor.

2.

Gratuitous contract

c)

A contract that does not have any special name under the law.

3.

Innominate contract

d)

A vice of consent where a person is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, ascendant or descendant.

4.

Intimidation

e)

They must be in the form provided by law, in addition, to having the three essential requisites of a contract.

5.

Formal contract

5.

Match the following

a)

The contracting parties may establish such terms and stipulations as they may deem convenient provided they are not contrary to law, morals, good customs, public order or public policy.

1.

Liberty of contract

b)

The period of temporary sanity of an insane person.

2.

Lucid interval

c)

It must refer to the substance of the thing which is the object of the contract or the principal conditions which moved a party into the contract, in order to vitiate consent.

3.

Mistake

d)

The particular reason of a party in entering into a contract.

4.

Motive

e)

Inadequacy of cause in a contract.

5.

Lesion

6.

Match the following

a)

They are inherent in a contract unless set aside or suppressed by the parties

1.

Natural elements of a contract

b)

It has a special name under the law.

2.

Nominate contract

c)

The principle that the contract has the force of law between the contracting parties and must be complied with in good faith.

3.

Obligatory 4rce of contract & compliance

d)

The cause, with respect to one party is the prestation or the promise of a thing or service by the other party.

4.

Onerous contract

e)

 The principle that a contract must bind both contracting parties and that its validity or compliance cannot be left to the will of one of them.

5.

Mutuality of contracts

7.

Match the following

a)

The term used when both parties to a contract are guilty.

1.

Pari delicto

b)

The stage of a contract when there is a meeting of minds between the parties on a definite subject matter and valid cause.

2.

Perfection

c)

Involves preliminary negotiations and bargaining, with no arrival yet of a definite agreement.

3.

Preparation of a contract

d)

A contract that can stand by itself.

4.

Principal contract

e)

The offeree is given a certain period within which to buy or not the thing being offered.

5.

Option Contract

8.

Match the following

a)

 The delivery of the object is required for its perfection.

1.

Real contract

b)

 The remedy in equity by means of which a written instrument is made to conform to the real intention of the parties when some error has been committed.

2.

Reformation of contract

c)

The parties hide their real agreement to which they are bound as a rule.

3.

Relatively simulated contract

d)

The principle that contracts take effect only between the contracting parties, their assigns and heirs.

4.

Relativity of contracts

e)

The adoption or affirmation of a contract which is defective because of a party's vitiated consent or incapacity.

5.

Ratification

9.

Match the following

a)

 It has all the essential requisites of a contract but which may be set aside by reason of injury or damage to third persons.

1.

Rescissible contract

b)

It is designed to prevent the commission of fraud by requiring certain contracts to be in writing.

2.

Statute of Fraud

c)

A stipulation that clearly and deliberately confers a favor upon a third person.

3.

Stipulation pour autrui

d)

 The remedy allowed by law to the contracting parties and to third persons to repair the damages caused them by a contract.

4.

Rescission

e)

The cause thereof is the service remunerated.

5.

Remuneratory contract

10.

Match the following

a)

It is present when a person takes improper advantage of his power over the will of another depriving the latter of a reasonable freedom of choice.

1.

Undue influence

b)

Only one party is obligated to do or give something.

2.

Unilateral contract

c)

 It exists when serious or irresistible force is employed to obtain consent.

3.

Violence

d)

A contract without any force and effect since the beginning.

4.

Void contract

e)

It is defective by reason of the incapacity or vitiated consent of one of the parties to a contract.

5.

Voidable contract

11.
The determination of the performance of a contract may be left to a third person, whose decision shall not be binding until it has been made known to both contracting parties.
a)
True
b)
False
12.
A contract entered into in the name of another without authority is unenforceable against the latter.
a)
True
b)
False
13.
Acceptance of a contract by letter or telegram does not bind the offerer except from the time it came to his knowledge.
a)
True
b)
False
14.
When the acceptance of a contract is by letter or telegram, the contract is presumed to have been entered into in the place where the acceptance was made.
a)
True
b)
False
15.
The person making the offer may fix the time, place, and manner of acceptance, all of which must be complied with.
a)
True
b)
False
16.
An offer made through an agent is accepted from the time acceptance is communicated to the principal by the agent.
a)
True
b)
False
17.
When the offerer has allowed the offeree a 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.
a)
True
b)
False
18.
Business advertisements of things for sale are definite offers unless it appears otherwise.
a)
True
b)
False
19.
Contracts entered into during a lucid interval are valid.
a)
True
b)
False
20.
A simple mistake in the computation in a contract will render the contract voidable.
a)
True
b)
False
21.
There is no mistake in a contract if the party alleging it knew the doubt, contingency or risk affecting the contract.
a)
True
b)
False
22.
Mutual error as to the legal effect of an agreement even if the real purpose of the parties is frustrated does not vitiate consent since ignorance of the law excuses no one from compliance therewith.
a)
True
b)
False
23.
A threat to enforce one's claim through competent authority, although the claim is just or legal, is considered an intimidation that vitiates consent.
a)
True
b)
False
24.
Violence or intimidation employed by a third person upon a contracting party does not vitiate consent.
a)
True
b)
False
25.
The contract is not considered voidable if both parties employed fraud to obtain consent.
a)
True
b)
False
26.
Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations, does not constitute fraud.
a)
True
b)
False
27.
The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves fraudulent.
a)
True
b)
False
28.
A mere expression of an opinion does not signify fraud if not made by an expert although the party has relied on the knowledge of the said person expressing the opinion.
a)
True
b)
False
29.
Misrepresentation by a third person does not vitiate consent, unless such misrepresentation has created substantial mistake and the same is mutual.
a)
True
b)
False
30.
Incidental fraud does not render a contract voidable but only obliges the person employing it to pay, damages.
a)
True
b)
False
31.
A relatively simulated contract is void.
a)
True
b)
False
32.
As a rule, future inheritance may not be the object of contract.
a)
True
b)
False
33.
The fact that the quantity of the object of a contract is not determinate does not affect the validity of a contract, provided that it is possible to determine the same, without the need of a new contract between the parties.
a)
True
b)
False
34.
The illegality of the motive of a party to a contract renders the contract void.
a)
True
b)
False
35.
Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless the debtor proves the contrary.
a)
True
b)
False
36.
If a contract is required to be in a certain form for its perfection, that form is indispensable and if it is not followed, the contract is void.
a)
True
b)
False
37.
In order that reformation of a contract may be availed of by a party, there should be a meeting of minds of the parties to the contract.
a)
True
b)
False
38.
Reformation is not available if the contract is void.
a)
True
b)
False
39.
When one party has brought an action to enforce the instrument, he cannot subsequently ask for its reformation.
a)
True
b)
False
40.
If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of the stipulation shall control.
a)
True
b)
False
41.
The interpretation of obscure words or stipulations in a contract shall not favor a party who caused the obscurity.
a)
True
b)
False
42.
The action for rescission is subsidiary; therefore, it cannot be instituted by a party if there are other legal means to obtain reparation for the damages he suffered.
a)
True
b)
False
43.
Rescission of a contract shall be only to the extent necessary to cover the damages caused.
a)
True
b)
False
44.
Rescission cannot be carried out if the one seeking rescission cannot return whatever he may be obliged to restore.
a)
True
b)
False
45.
Rescission cannot take place when the object of the contract is legally in the possession of third persons who acted in bad faith.
a)
True
b)
False
46.
Alienations by gratuitous title are presumed fraudulent if the donor did not reserve sufficient property to pay off debts contracted before the donation.
a)
True
b)
False
47.
The action for rescission must be commenced within three years.
a)
True
b)
False
48.
A voidable contract is binding until it is annulled by a proper action in court.
a)
True
b)
False
49.
If a party ratifies a voidable contract, he can still subsequently ask for its annulment.
a)
True
b)
False
50.
Ratification requires the conformity of the contracting party who has no right to bring the action for annulment.
a)
True
b)
False
51.
Ratification cleanses the contract from all its defects from the moment the ratification was made.
a)
True
b)
False
52.
Annulment of a voidable contract is available only to those who are obliged principally or subsidiarily; hence, it cannot be availed of by third persons.
a)
True
b)
False
53.
When the defect of the contract consists in the incapacity of one of the contracting parties, the incapacitated person is obliged to make restitution only to the extent that he has been benefited by the thing or the price received by him.
a)
True
b)
False
54.
A contract where both parties are incapable of giving consent is voidable.
a)
True
b)
False
55.
Contracts that are required to be in writing under the Statute of Frauds may be enforced if benefits have been accepted under them.
a)
True
b)
False
56.
Unenforceable contracts cannot be assailed by third persons.
a)
True
b)
False
57.
A void contract may be ratified.
a)
True
b)
False
58.
The right to set up the defense of illegality of a contract may be waived.
a)
True
b)
False
59.
The action or defense for the declaration of the inexistence or nullity of a contract does not prescribe.
a)
True
b)
False
60.
If an illegal contract constitutes a criminal offense and both parties are guilty, both shall be criminally prosecuted but they may keep the object of the contract.
a)
True
b)
False
61.
A party may recover, if public interest will be subserved, money or property delivered by him for an illegal purpose, provided that he repudiates the contract before the purpose has been accomplished.
a)
True
b)
False
62.
When the agreement is not illegal per se but is merely prohibited, and the prohibition by law is designed for the protection of the plaintiff, he may, if public policy is enhanced, recover what he has paid or delivered.
a)
True
b)
False
63.
In case of a divisible contract, if the illegal terms can be separated from the legal ones, the latter may be enforced.
a)
True
b)
False
64.
The defense of illegality of contracts is not available to third persons whose interests are not directly affected.
a)
True
b)
False
65.
A contract which is the direct result of a previous illegal contract is also void and inexistent.
a)
True
b)
False
66.
A party who employed violence, intimidation, undue influence, or fraud, or who caused mistake may bring an action to annul the contract on any such ground.
a)
True
b)
False
67.
A contract is rendered voidable although a party gave his consent because of a reasonable and well-grounded fear of an imminent and grave evil upon the property of his descendant.
a)
True
b)
False
68.
The donation by a person of his organ which will take upon his death is valid.
a)
True
b)
False
69.
Reformation is a remedy availed of to express the real intent of the parties to a contract whether oral or written.
a)
True
b)
False
70.
Rescission cannot be availed of in the case of a last will and testament.
a)
True
b)
False
71.

The parties do not intend to be bound at all

(a)  

72.

Its existence depends upon another contract

(a)  

73.

They refer to the stipulations agreed upon by the contracting parties such as terms of payment interest rate etc

(a)  

74.

A contract whose fulfillment depends upon chance

(a)  

75.

The action that is brought to set aside a voidable contract

(a)  

76.

Both parties are required to perform reciprocal prestations

(a)  

77.

The essential reason of a party in entering into a contract

(a)  

78.

An accessory penalty which deprives a person during the term of his sentence of the rights of parental authority of guardianship of marital authority of the right to manage his property and of the right to dispose of such property by any act or conveyance inter vivos

(a)  

79.

A contract where the parties give equivalent values hence there is real fulfillment

(a)  

80.

A contract that is perfected by mere consent

(a)  

81.

The principle that contracts are perfected by mere consent

(a)  

82.

The manifestation of the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract

(a)  

83.

The terms of the contract have been fulfilled resulting in its accomplishment

(a)  

84.

A meeting of minds between two persons whereby one binds himself with respect to the other to give something or to render some service

(a)  

85.

Elements without which a contract would not exist

(a)  

86.

They must be in the form provided by law in addition to having the three essential requisites of a contract

(a)  

87.

The use of insidious words or machinations to obtain consent

(a)  

88.

The cause thereof is the liberality of the benefactor

(a)  

89.

A contract that does not have any special name under the law

(a)  

90.

A vice of consent where a person is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or property or upon the person or property of his spouse ascendant or descendant

(a)  

91.

Inadequacy of cause in a contract

(a)  

92.

The contracting parties may establish such terms and stipulations as they may deem convenient provided they are not contrary to law morals good customs public order or public policy

(a)  

93.

The period of temporary sanity of an insane person

(a)  

94.

It must refer to the substance of the thing which is the object of the contract or the principal conditions which moved a party into the contract in order to vitiate consent

(a)  

95.

The particular reason of a party in entering into a contract

(a)  

96.

The principle that a contract must bind both contracting parties and that its validity or compliance cannot be left to the will of one of them

(a)  

97.

They are inherent in a contract unless set aside or suppressed by the parties

(a)  

98.

It has a special name under the law

(a)  

99.

The principle that the contract has the force of law between the contracting parties and must be complied with in good faith

(a)  

100.

The cause with respect to one party is the prestation or the promise of a thing or service by the other party

(a)  

101.

The offeree is given a certain period within which to buy or not the thing being offered

(a)  

102.

The term used when both parties to a contract are guilty

(a)  

103.

The stage of a contract when there is a meeting of minds between the parties on a definite subject matter and valid cause

(a)  

104.

Involves preliminary negotiations and bargaining with no arrival yet of a definite agreement

(a)  

105.

A contract that can stand by itself

(a)  

106.

The adoption or affirmation of a contract which is defective because of a party's vitiated consent or incapacity

(a)  

107.

The delivery of the object is required for its perfection

(a)  

108.

The remedy in equity by means of which a written instrument is made to conform to the real intention of the parties when some error has been committed

(a)  

109.

The parties hide their real agreement to which they are bound as a rule

(a)  

110.

The principle that contracts take effect only between the contracting parties their assigns and heirs

(a)  

111.

The cause thereof is the service remunerated

(a)  

112.

It has all the essential requisites of a contract but which may be set aside by reason of injury or damage to third persons

(a)  

113.

The remedy allowed by law to the contracting parties and to third persons to repair the damages caused them by a contract

(a)  

114.

It is designed to prevent the commission of fraud by requiring certain contracts to be in writing

(a)  

115.

A stipulation that clearly and deliberately confers a favor upon a third person

(a)  

116.

It is present when a person takes improper advantage of his power over the will of another depriving the latter of a reasonable freedom of choice

(a)  

117.

Only one party is obligated to do or give something

(a)  

118.

It exists when serious or irresistible force is employed to obtain consent

(a)  

119.

A contract without any force and effect since the beginning

(a)  

120.

It is defective by reason of the incapacity or vitiated consent of one of the parties to a contract

(a)