Final Exam (ObliCon)

BL 1 (Obligations and Contracts) Final Examination

MULTIPLE CHOICE: Choose the letter of the correct/best answer. 1. The contract must bind both contracting parties, its validity or compliance cannot be left to the will of one of them, and this is a. mutuality of contracts b. relativity of contracts c. freedom of contracts d. obligatory force of contracts 2. By this principle, contracts take effect only upon the contracting parties, their assigns or successors in interest a. mutuality of contracts b. relativity of contracts c. freedom of contracts d. obligatory force of contracts 3. Three of the following are essential elements of the contract, except: a. cause of the obligation, which is established b. consent of the contracting parties c. motive of the parties d. object certain, which is the subject matter of the contract 4. A contract which does not have any specific name name or designation in law: a. nominate contract b. innominate contract c. commutative contract d. aleatory contract 5. The warranty against hidden defects in a contract of sale is an example of: a. natural elements b. accidental elements c. essential elements d. original elements 6. The following cannot give consent to a contract, except: a. minors, except sale of necessaries in life b. insane persons c. demented d. minors who represent themselves as of legal age to one in good faith. 7. Which of the following is a definite offer? a. Will you buy this watch I am wearing for P1,000? b. I am willing to buy your car. c. I will consider the sale of my land to you for P100,000. d. Business advertisements of things for sale. 8. A defective contract where damage or lesion is essential is: a. rescissible b. unenforceable c. voidable d. void

9. The contracts entered into by the persons who cannot give consent is: a. void ab initio, because actually there is no consent b. unenforceable only because the contract maybe ratified c. rescission because of the damage caused to the person incapacitated d. voidable as there is consent although vitiated or defective 10. A defective contract because it is entered into in the name of another without or in excess of authority, or it is verbal is: a. unenforceable b. void c. voidable d. rescissible 11. A defective contract because it is prohibited by law is: a. void b. rescissible c. voidable d. unenforceable 12. The following are still valid contracts except: a. void b. voidable c. unenforceable d. rescissible 13. The following are void contracts, except a. A contract whereby X promised to give as the common-law-wife or Y without the benefit or marriage in consideration of P1,000,000 b. An agreement whereby A is to render service as a servant to B without compensation as long as A has not paid him debt c. A stole the car of B. Later they entered into a contract whereby B would not prosecute A in consideration of P1000,000 d. A stipulation in a contract of lease whereby the landlord can go to court to eject the tenant in case of failure of the latter to pay the rent agreed upon 14. A, with a violence in her eyes, intimidated her husband B to sell his exclusive property to her. The contract to sell is a. rescissible c. voidable b. unenforceable d. void 15. Which of the following are rescissible contracts? 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 that do not comply with the Statute of Frauds. d. Those which are absolutely simulated or fictitious. 16. Which of the following are void contracts? 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.

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c. Those that do not comply with the Statute of Frauds. d. Those which are absolutely simulated or fictitious. Which of the following are unenforceable contracts? 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 that do not comply with the Statute of Frauds. d. Those which are absolutely simulated or fictitious. Which of the following are voidable contracts? 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 that do not comply with the Statute of Frauds. d. Those which are absolutely simulated or fictitious. Sale upon credit by an insolvent debtor and evidence of large indebtedness are some of the circumstances that have been denominated by our courts as: a. badges of fraud b. badges of intimidation c. badges of violence d. badges of mistake The rule which requires that certain agreements or some note or memorandum thereof, shall be in writing & subscribed by the party charged or by his agents; otherwise such agreements shall be unenforceable by action because evidence of the same cannot be received without the writing, or a secondary evidence of its contents: a. Statute of Frauds b. Statute of Intimidations c. Statute of Mistakes d. Statute of Limitations

TRUE OR FALSE: Write TRUE if the statement is true; write FALSE if the statement is false. 1. If the terms of a contract are clear, the literal meaning of its stipulations shall control.

2. The words of the contract shall prevail over the evident intention of the parties. 3. The contemporaneous & subsequent acts of the parties shall be principally considered in order to ascertain their intention, 4. Contracts shall not be understood to comprehend things & cases distinct or different from that intended by the parties. 5. If some stipulation of the contract has several meanings, it shall bear that import which would render it effectual. 6. The various stipulations of a contract shall not be interpreted as a whole. 7. Omission or deficiency in a contract may be filled by custom or usage of the place. 8. Obscure words or stipulations in a contract shall favor the party who caused the obscurity. 9. Doubts in gratuitous contracts shall be settled in such a way that the least transmission of rights & interests shall prevail. 10. Doubts in onerous contracts shall be settled in favor of the greatest reciprocity of interests. ENUMERATION 30. – 33. Classification of contracts according to perfection. 34. – 36. What may be the object of a contract. 37. – 39. Characteristics of consent. 40. – 44. Vices of consent. 45. – 48. Kinds of defective contracts. 49. – 50. Kinds of fraud in contracts. things rights services consensual real formal intelligent voluntary conscious dolo causante dolo incidente fraud intimidation violence undue influence mistake rescissible voidable unenforceable void