1. The validity and efficacy of the contract cannot be left to the will of one of the contracting parties.

a. Relativity of contract
b. Mutuality of contract
c. Obligatoriness of contract
d. Freedom of contract
✅ Answer: b. Mutuality of contract

2. This principle means that contracts take effect only upon the contracting parties, their assigns or
successors-in-interest.
a. Relativity of contract
b. Mutuality of contract
c. Obligatoriness of contract
d. Freedom of contract
e. Consensuality of contract
✅ Answer: a. Relativity of contract

3. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause
which are to constitute the contract. Which of the following constitutes a definite offer?
a. An offer made through an agent
b. Business advertisement of things for sale
c. Advertisement for bidders
d. All of the above
✅ Answer: a. An offer made through an agent

4. An agreement in restraint of trade.

a. Perfectly valid
b. Voidable
c. Unenforceable
d. Void
✅ Answer: d. Void

5. Contract that is made for a valuable consideration is:

a. Onerous
b. Gratuitous
c. Onerous and Gratuitous
d. Aleatory
✅ Answer: a. Onerous

6. The stage of “conception” of a contract is:

a. When the contract is fully executed
b. When the parties come to an agreement
c. When negotiations are in progress
d. When there is a meeting of the parties’ minds
✅ Answer: c. When negotiations are in progress
7. These persons are bound by contracts:
a. Contracting parties
b. Assigns or Assign
c. Heirs
d. All of them
✅ Answer: d. All of them

8. Acceptance of an offer made by letter or telegram shall bind the offeror:

a. From the time the offeree has knowledge of the offer
b. From the time the offeree sent his acceptance
c. From the time the acceptance is communicated
d. From the time the offeror made the offer
✅ Answer: b. From the time the offeree sent his acceptance

9. Essential requisites of a contract:

a. Consent
b. Cause
c. Subject
d. All of them
✅ Answer: d. All of them

10. An incidental element of a contract:

a. Implied warranty
b. Payment of interest in a loan
c. Delivery of the object in contract of pledge
d. All of the above
✅ Answer: d. All of the above

11.
S1 - A threat to enforce one’s claim through competent authority, if the claim is just or legal does not
vitiate consent.
S2 - Contracts entered into during a lucid interval are valid. Contracts agreed into a state of drunkenness
or during a hypnotic spell are binding.
a. Both are true
b. Both are false
c. No.1 is true; No. 2 is false
d. No.1 is false; No. 2 is true
✅ Answer: a. Both are true

12. Which of the following contract is not valid?

a. Mutual promise to marry entered into orally
b. Sale of immovable property orally entered into
c. One of the parties in a contract is incapable of giving consent
d. Sale of immovable property through an agent
✅ Answer: c. One of the parties in a contract is incapable of giving consent

13. A conferment of a direct benefit in a contract between two persons in favor of a third person who
must accept such benefit before the same is withdrawn is known as:
a. Policitacion
b. Stipulation por autrui
c. Donation propter nuptias
d. Counter-offer
✅ Answer: b. Stipulation por autrui

14. The offeror need not know the acceptance by the offeree is the theory of:
a. Cognition
b. Manifestation
c. Expedition
d. B or C
✅ Answer: c. Expedition

15.
S1: Dolo incidente entitles the person against whom it was employed the right to seek the annulment of
the contract.
S2: Innominate contracts are exclusively regulated by the stipulations of the parties.
a. Both are true
b. Both are false
c. No.1 is true; No. 2 is false
d. No.1 is false; No. 2 is true
✅ Answer: c. No.1 is true; No. 2 is false

16. Which of the following instruments is not subject to reformation?

a. Simple donations inter vivos wherein no condition is imposed
b. Wills
c. When the real agreement is void
d. All of the above
✅ Answer: d. All of the above

17. The following contracts should observe the Statute of Frauds, except:
a. Guaranty
b. Lease of personal property longer than one year
c. Representation as to the credit of a third person
d. Lease of personal property for one year
✅ Answer: d. Lease of personal property for one year

18. Which of the following contracts is required to be in writing to be enforceable?

a. An agreement that by its terms is not to be performed within a year from the making thereof
b. A special promise to answer for the debt, default or miscarriage of another
c. An agreement made in consideration of marriage, other than a mutual promise to marry
d. All of the above
✅ Answer: d. All of the above

19. Contracts that cannot be sued upon unless ratified:

a. Voidable
b. Unenforceable
c. Rescissible
d. Void
✅ Answer: b. Unenforceable

20. Which of the following can be considered as a feature of the void contract?
a. Subject to ratification
b. They exist
c. Action or defense for nullity is subject to prescription
d. It is imprescriptible as a defense
✅ Answer: d. It is imprescriptible as a defense

21. In three of the following defective contracts, ratification cleanses the defects. Which is the
exception?
a. Both parties are incapable of giving consent
b. Sale of immovable property or interest orally entered into
c. Sale of a piece of land through an agent when the authority is oral
d. Contracts entered into by a person who has been given no authority
✅ Answer: d. Contracts entered into by a person who has been given no authority

22. Valid until annulled unless there has been ratification

a. Rescissible contract
b. Inexistent contract
c. Voidable contract
d. None of the above
✅ Answer: c. Voidable contract

23. Because of the intimidation employed by X, a third person, S sold his car to B. This contract is:
a. Void
b. Voidable
c. Unenforceable
d. Rescissible
✅ Answer: b. Voidable

24. B called C by the telephone to guaranty the debt of D to C. The contract between B and C is:
a. Unenforceable
b. Voidable
c. Rescissible
d. Annulable
✅ Answer: a. Unenforceable

25. This kind of defective contract refers to a contract which is validly agreed upon because all the
essential elements exist, but courts can nullify it when there is damage or prejudice to one of the parties
or to a third person. Its enforcement would cause injustice by reason of some external facts.
a. Voidable contract
b. Void or Inexistent contract
c. Rescissible contract
d. Unenforceable contract
✅ Answer: c. Rescissible contract

26. P, who was in Hong Kong, made an overseas call to A, his friend, to sell P’s lot in Quezon City
immediately as P needed cash. Accordingly, A sold the lot to B. The deed of sale is in a public document.
The sale of P’s lot is:
a. Valid
b. Rescissible
c. Unenforceable
d. Void
✅ Answer: c. Unenforceable

27. All are incorrect about contracts except one:

a. Voidable contracts are also called validable contracts
b. Stipulation pour autrui is an exception to mutuality of contracts
c. Fraud in inducement is a ground to nullify a contract
d. Void contracts are unenforceable but not vice versa
✅ Answer: a. Voidable contracts are also called validable contracts

28. The following, except one, are characteristics of void or inexistent contracts. What is the exception?
a. They are not subject to ratification.
b. The right to raise defense of illegality cannot be waived.
c. The defense of illegality of the contract is available to third persons whose interest is not directly
affected.
d. The action or defense for declaration of the nullity or inexistence of the contract does not prescribe.
✅ Answer: c. The defense of illegality of the contract is available to third persons whose interest is not
directly affected.

29. Mistake in three of the following will make a contract voidable. Which one will not?
a. Mistake as to the substance of the thing which is the object of the contract
b. Mistake as to the principal conditions which principally moved one or both parties to enter into the
contract
c. Mistake as to the identity or qualifications of one of the parties, which identity or qualifications have
been the principal cause of the contract
d. Simple mistake of account
✅ Answer: d. Simple mistake of account

30. Statute of Frauds is applicable to:

a. Partially executed contract
b. Oral contract of loan when the amount involved is less than P500
c. Contract not to be performed within a year from the making thereof
d. All of the above
✅ Answer: c. Contract not to be performed within a year from the making thereof

31. When bilateral contracts are vitiated with vices of consent, they are rendered:
a. Rescissible
b. Void
c. Unenforceable
d. Voidable
✅ Answer: d. Voidable

32. Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five
lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties could not
agree which of the five lots Lino undertook to sell to Ramon. What is the standing of the contract?
a. Unenforceable
b. Voidable
c. Rescissible
d. Void
✅ Answer: d. Void

33. One of the following statements concerning ratification of a voidable contract is false. Which is it?
a. Ratification extinguishes the action to annul a voidable contract
b. Ratification cleanses the contract from all its defects from the moment it was constituted
c. Ratification requires the conformity of the party who has no right to bring the action for annulment
d. Ratification may be made by the guardian of the incapacitated person, or the incapacitated person
upon attaining capacity, or the party whose consent was vitiated
✅ Answer: c. Ratification requires the conformity of the party who has no right to bring the action for
annulment

34. The following agreements are covered by the Statute of Frauds. Which is not?
a. An oral agreement which by its terms is not to be performed within one year from the making thereof
b. An oral special promise to answer for the debt, default or miscarriage of another
c. An oral agreement in consideration of marriage
d. An oral contract of partnership where the contribution in money or personal property amounts to
P3,000 or more
✅ Answer: d. An oral contract of partnership where the contribution in money or personal property
amounts to P3,000 or more
35. S owns an oil painting. Being in need of money, S sold the painting to B for P1,000. After the sale, it
was discovered that the painting was valuable and worth P5,000.
a. S may rescind the contract on ground of lesion or inadequacy of cause
b. S may rescind the contract on ground of fraud
c. S may annul the contract on the ground of error
d. B is entitled to the benefit of the contract because it is valid and binding
✅ Answer: d. B is entitled to the benefit of the contract because it is valid and binding

36. Contract which has no effect at all and cannot be ratified is a/an:
a. Unenforceable
b. Void contract
c. Voidable
d. All of them
✅ Answer: b. Void contract

37.
S sold to B in private instrument his land. Later, B wanted to have the sale registered, but registration
requires a public instrument. In here, B may compel S to execute the needed public instrument.
S sold to B orally his specific land. After B paid S the price of the sale, he wants to register the land in his
name but he needed a public instrument of sale. In here B may compel S to execute the needed public
instrument.
a. Both examples are false
b. Only 1 is true
c. Only 2 is true
d. Both are true
✅ Answer: b. Only 1 is true

38.
S1 - Ratification of voidable contract is necessary for its validity.
S2 - One can ask for the annulment of a contract based on dolo incidente.
a. Both are true
b. Both are false
c. I is true, II is false
d. I is false, II is true
✅ Answer: c. I is true, II is false

39. S was forced by X to sign a contract with B for the sale of specific property for P10,000. C, a creditor
of X, is prejudiced by the contract. What can S do?
a. S may ask for annulment of the contract
b. S may ask for rescission of the contract
c. S may ask C to declare the contract avoided
d. C may ask for the annulment of the contract
✅ Answer: a. S may ask for annulment of the contract
40. In the preceding number, what can C do?
a. C may ask for rescission of the contract
b. C may ask for the reformation
c. C may ask S to declare the contract voided
d. C may ask for the annulment of the contract
✅ Answer: a. C may ask for rescission of the contract

41. Which of the following contracts is voidable?

a. Those where both parties are incapable of giving consent to a contract
b. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims
due to them
c. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud
d. Those whose object is outside the commerce of men
✅ Answer: c. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or
fraud

42.
A stipulation in a contract of lease, which provides that the tenant shall have the right to continue in
possession of the leased premises so long as he pays monthly rentals thereon, is a valid stipulation.
The seller sold to a minor some necessaries in the amount of P600. The goods were delivered to the
minor who, in turn paid the purchase price therefore. The contract is unenforceable.
a. Both are true
b. Both are false
c. No.1 is true; No. 2 is false
d. No.1 is false; No. 2 is true
✅ Answer: c. No.1 is true; No. 2 is false

43.
S and B orally agree that S would sell and B would buy S’s radio for P400, two years from the date of the
agreement. At the end of the two-year period, S refused to deliver the radio although B was willing to
pay.
a. B can compel S to deliver because B is willing to pay the price.
b. The contract falls under the Statute of Frauds, therefore unenforceable.
c. No Statute of Frauds because the price is less than P500.
d. The object is movable, oral contract is enforceable.
✅ Answer: b. The contract falls under the Statute of Frauds, therefore unenforceable.

44.
This kind of defective contract refers to that contract which is validly agreed upon because all the
essential elements exist, but courts can nullify it when there is damage or prejudice to one of the parties
or to a third person. Its enforcement would cause injustice by reason of some external facts.
a. Voidable contract
b. Void Contract
c. Rescissible Contract
d. Unenforceable Contract
✅ Answer: c. Rescissible Contract

45.
S1 – Reformation of the instrument interprets the contract in order to express the true intention of the
parties.
S2 – An onerous contract is interpreted in favor of greatest reciprocity of interest.
a. Both are true
b. Both are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: a. Both are true

46.
S1 – In case of conflict between a general provision and a special provision, the customs of the place
shall prevail.
S2 – A natural obligation is based on positive and equity law.
a. Both are true
b. Both are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: d. S1 is false, S2 is true

47.
S1 – Motive is an essential element of a contract.
S2 – Illegal motive makes the contract voidable.
a. Both are true
b. Both are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: b. Both are false

48.
Must be in writing to be enforceable:
a. Lease of land for 12 months
b. Lease of car for 18 months
c. Both of a and b
d. None of a and b
✅ Answer: c. Both of a and b

49.
Which of the following is not a characteristic of a contract?
a. Autonomy
b. Relativity
c. Mutuality
d. Effectivity
✅ Answer: d. Effectivity

50.
The following are the essential requisites of contracts except:
a. Negotiation
b. Object
c. Consent
d. Cause
✅ Answer: a. Negotiation

51.
I. In case of a personal property, if value exceeds Php5,000, the donation and acceptance must both be
written.
II. In case of a real property, donation must be in a public instrument if value exceeds Php20,000,
specifying therein the property donated and value of charges which donee must satisfy.
a. Both statements are correct.
b. Both statements are incorrect.
c. Statement I is correct while statement II is incorrect.
d. Statement I is incorrect while statement II is correct.
✅ Answer: a. Both statements are correct.

52.
The following contracts must appear in a public instrument except:
a. Donation of real properties.
b. Donation of personal property below P5,000.
c. Partnership where immovable property or real rights are contributed to the common fund.
d. None of the above.
✅ Answer: b. Donation of personal property below P5,000.

53.
Which of the following is not a restriction on one’s capacity to enter into a contract?
a. Minority
b. Deaf-mute
c. Marriage
d. Insanity
✅ Answer: c. Marriage

54.
Which of the following statements is correct?
a. All contracts are perfected by mere consent.
b. All contracts are perfected by delivery of the object.
c. All contracts are required to be in writing.
d. All contracts are required to have a valid consideration.
✅ Answer: d. All contracts are required to have a valid consideration.

55.
It is a principle which holds that a contract must bind both parties; its validity or compliance cannot be
left to the will of one of them.
a. Obligatory force of contracts
b. Autonomy of contracts
c. Mutuality of contracts
d. Relativity of contracts
✅ Answer: c. Mutuality of contracts

56.
It refers to the rule that a contract is binding not only between parties but extends to the heirs,
successors in interest, and assignees of the parties, provided that the contract involved transmissible
rights by their nature, or by stipulation or by law.
a. Obligatory force of contracts
b. Autonomy of contracts
c. Mutuality of contracts
d. Relativity of contracts
✅ Answer: d. Relativity of contracts

57.
It is a rule which holds that the freedom of the parties to contract includes the freedom to stipulate,
provided the stipulations are not contrary to law, morals, good customs, public order or public policy.
a. Obligatory force of contracts
b. Autonomy of contracts
c. Mutuality of contracts
d. Relativity of contracts
✅ Answer: b. Autonomy of contracts

58.
The following are rescissible contracts, except:
a. Entered into by guardian whenever ward suffers damage more than ¼ of value of property.
b. Agreed upon in representation of absentees, if absentee suffers lesion by more than ¼ of value of
property.
c. Contracts where fraud is committed on creditor (accion pauliana).
d. Contracts entered into by minors.
✅ Answer: d. Contracts entered into by minors.

59.
The following are essential elements of a contract, except:
a. Consent
b. Delivery
c. Object
d. Cause
✅ Answer: b. Delivery

60.
It is manifested by the meeting of the offer and acceptance with respect to the thing and cause which is
the subject matter of the contract.
a. Consent
b. Motive
c. Policitation
d. Object
✅ Answer: a. Consent

61.
The following are defective contracts, except:
a. Voidable
b. Rescissible
c. Natural
d. Unenforceable
✅ Answer: c. Natural

62.
If both parties are minors, the contract is:
a. Unenforceable
b. Voidable
c. Rescissible
d. Void
✅ Answer: a. Unenforceable

63.
In case of payments made in state of insolvency, the contract is:
a. Unenforceable
b. Voidable
c. Rescissible
d. Void
✅ Answer: c. Rescissible

64.
If a real property is donated, the contract must appear in:
a. Writing
b. Public instrument
c. Registered
d. Public instrument and registered
✅ Answer: b. Public instrument
65.
In the immediately preceding problem, the contract must appear in that form for:
a. Validity
b. Enforceability
c. Bind the parties
d. Bind third persons
✅ Answer: a. Validity

66.
The following contracts can be reformed, except:
a. Simple donation inter vivos wherein no condition is imposed
b. Simple donation mortis causa wherein a condition is imposed
c. Wills
d. When the real agreement is void
✅ Answer: c. Wills

67.
Acceptance made by letter or telegram does not bind the offerer except from the time it came to his
knowledge
a. Cognition theory
b. Manifestation theory
c. Declarative theory
d. Creation theory
✅ Answer: a. Cognition theory

68.
In order to commit causal fraud:
a. It must be serious and unilateral
b. Serious and bilateral
c. Committed by both parties
d. Committed after the creation of the contract
✅ Answer: a. It must be serious and unilateral

69.
A contract which is onerous in nature is interpreted:
a. Against both parties
b. Against the party who made it onerous
c. With the least transmission of rights
d. In favor of greatest reciprocity of interest
✅ Answer: d. In favor of greatest reciprocity of interest
70.
A contract must bind both parties, its validity cannot be left to one of the parties.
a. Autonomy of contract
b. Mutuality
c. Relativity
d. Obligatory force of contract
✅ Answer: b. Mutuality

71.
It is an innominate contract which means “I do that you may give.”
a. Do ut des
b. Do ut facias
c. Facio ut des
d. Facio ut facias
✅ Answer: c. Facio ut des

72.
Contracts take effect only between the parties, their heirs and assigns.
a. Mutuality
b. Relativity
c. Consensual
d. Obligatory
✅ Answer: b. Relativity

73.
It is the act of making it binding to third persons
a. Delivery
b. Registration
c. Placing it in a public document
d. Placing it in a private document
✅ Answer: b. Registration

74.
It is the stage in the life of a contract wherein the parties perform their respective obligations.
a. Preparation
b. Perfection
c. Consummation
d. Delivery
✅ Answer: c. Consummation

75.
All of the following are real contracts, except:
a. Sale
b. Pledge
c. Deposit
d. Commodatum
✅ Answer: a. Sale

76.
If the person is not authorized, the remedy to make it valid is:
a. Ratification
b. Annulment
c. Rescission
d. Declaration of absolute nullity
✅ Answer: a. Ratification

77.
The following are grounds for ineffective offer, except:
a. Death
b. Insanity
c. Minority
d. Civil interdiction
✅ Answer: c. Minority

78.
If both parties are prohibited to enter into a contract, the effect is:
a. Voidable
b. Rescissible
c. Unenforceable
d. Void
✅ Answer: c. Unenforceable

79.
It is one giving a person for a consideration a certain period within which to accept the offer of the
offerer.
a. Option contract
b. Earnest contract
c. Perfected contract
d. Policitation
✅ Answer: a. Option contract

80.
S1 – Business advertisements are definite offers.
S2 – A contract entered into during lucid interval is voidable.
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: d. S1 is false, S2 is true

81.
S1 - If both parties are insane, the contract is void.
S2 – Stipulation pour autrui is valid even though not accepted by the third person.
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: a. Both statements are true

82.
S1 - A contract entered into during hypnotic spell is void.
S2 – If there is mistake, the contract is unenforceable.
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: c. S1 is true, S2 is false

83.
The following parties are incapacitated to enter into a contract, except:
a. Husband and wife selling properties to each other
b. Minors
c. Insane
d. Demented person
✅ Answer: a. Husband and wife selling properties to each other

84.
There is _______ when in order to wrest consent, serious or irresistible force is employed.
a. Violence
b. Intimidation
c. Fraud
d. Undue influence
✅ Answer: a. Violence

85.
S1 – The usual exaggerations in trade, when the other party had an opportunity to know the facts, are in
themselves fraudulent.
S2 – Incidental fraud only obliges the person employing it to pay damages.
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: d. S1 is false, S2 is true

86.
S1 – Impossible things or services cannot be the object of a contract.
S2 – Contracts are perfected by mere consent and the delivery of the thing.
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: c. S1 is true, S2 is false

87.
S1 – Real contract requires consent and the delivery of the thing to create the contract.
S2 – Statute of Frauds require the contract to appear in a public instrument.
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: c. S1 is true, S2 is false

88.
S1 – In pari delicto doctrine applies if the contract is unenforceable.
S2 – The quantity of object of a contract need not be determinate provided it is capable of coming into
existence.
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: d. S1 is false, S2 is true

89.
It is the act of deliberately deceiving others, by feigning or pretending by agreement, the appearance of
a contract which is either non-existent or concealed.
a. Policitation
b. Lesion
c. Simulation
d. Motive
✅ Answer: c. Simulation

90.
The following are classification of cause, except:
a. Motive
b. Onerous
c. Gratuitous
d. Remuneratory
✅ Answer: a. Motive

91.
It is any damage caused by the fact that the price is unjust or inadequate.
a. Motive
b. Lesion
c. Simulation
d. Cognition
✅ Answer: b. Lesion

92.
One the cause of which is the service or benefit which is rewarded.
a. Onerous
b. Gratuitous
c. Remuneratory
d. Natural
✅ Answer: c. Remuneratory

93.
There shall be no reformation in the following cases, except:
a. When the real agreement is void
b. Failure to express true intention of parties
c. Wills
d. When the real agreement is void
✅ Answer: b. Failure to express true intention of parties

94.
The action to claim for rescission must be commenced within a period of ___:
a. 1 year
b. 2 years
c. 4 years
d. Imprescriptible
✅ Answer: c. 4 years

95.
In case of mistake of fraud, the action for annulment must be commenced –
a. Within 4 years from discovery of the same
b. Within 4 years from the time the defect of consent ceases
c. Within four years from the time guardianship ceases
d. Within 3 years from registration
✅ Answer: a. Within 4 years from discovery of the same

96.
The following falls under the Statute of Fraud except:
a. Agreement that by its term is not to be performed within a year from the making thereof
b. A special promise to answer for the default, debt or miscarriage of another
c. An agreement made in consideration of marriage, other than the mutual promise to marry
d. Donation of immovable property
✅ Answer: d. Donation of immovable property

97.
S1 – Ratification extinguishes the action to annul a voidable contract.
S2 – Unenforceable contracts cannot be assailed by third persons
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: a. Both statements are true

98.
S1 – The action or defense for the declaration of the inexistence of a contract prescribes.
S2 – Natural obligations grants a right of action to enforce their performance.
a. Both statements are true
b. Both statements are false
c. S1 is true, S2 is false
d. S1 is false, S2 is true
✅ Answer: b. Both statements are false

99.
S1 – Pedro, a senior high student and 16 years old, married Juana his childhood sweetheart aged 15
years old. The marriage is –
a. Valid
b. Voidable
c. Unenforceable
d. Void
✅ Answer: d. Void

100.
Miguel, 16 years old, buys medicine for his ailing mother in a drugstore. The contract is
a. Valid
b. Voidable
c. Unenforceable
d. Void
✅ Answer: a. Valid

101.
Pedro and Miguel are contending parties in a piece of land. They agreed to settle the matter in court.
While the case was pending, Pedro, without the approval of the court or of Miguel sold the property to
Juan. The status of contract is –
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
✅ Answer: a. Rescissible

102.
Pedro authorized B to sell his watch for P10,000. B sold it for P8,0000. What is the status of the sale?
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
✅ Answer: a. Rescissible

103.
Pedro authorized B to sell his watch for P10,000. B sold it for P12,0000. What is the status of the sale?
a. Valid
b. Voidable
c. Unenforceable
d. Void
✅ Answer: a. Valid

104.
The theory which states that the contract is perfected the moment the offeree sends his acceptance to
the offeror.
a. Cognition theory
b. Reception theory
c. Expedition Theory
d. Manifestation Theory
✅ Answer: c. Expedition Theory

105.
S1 – Simple mistake of account makes the contract does not vitiate consent.
S2 – Incidental fraud obliges the person liable to pay for damages.
S3 – Fraud committed against the creditor makes the contract Rescissible
a. All are true
b. All are false
c. Only S1 is true
d. Only S2 is false
e. Only S3 is true
✅ Answer: a. All are true
106.
S1 – In consensual contract, delivery is required at the time of consummation.
S2 – In a real contract, delivery is required the time of the perfection of the contract.
a. All are true
b. All are false
c. Only S1 is false
d. Only S2 is false
✅ Answer: a. All are true

107.
Which of the following statements is correct?
a. Offers in interrelated contracts are perfected upon consent.
b. Offers in interrelated contracts require a single acceptance.
c. Business advertisements are definite offers that require specific acceptance.
d. Advertisements for bidders are only invitations to make proposals and the advertiser is not bound to
accept the highest/lowest bidder, unless it appears otherwise
✅ Answer: d. Advertisements for bidders are only invitations to make proposals and the advertiser is
not bound to accept the highest/lowest bidder, unless it appears otherwise

108. The following are void contracts, except:

a. Pactum commissorium
b. Pactum de non alienando
c. Pactum leonine
d. Pacto de retro
✅ Answer: d. Pacto de retro

109. Contracts take effect only between the parties or their assigns and heirs, except where the rights
and obligations arising from the contract are not transmissible by their nature, by stipulation, or by
provision of law. In the latter case, the assigns or the heirs are not bound by the contracts. This is known
as the principle of
a. Relativity of contracts
b. Freedom to stipulate
c. Mutuality of contracts
d. Obligatory force of contracts
✅ Answer: a. Relativity of contracts

110. A contract where both parties are required to render reciprocal prestations, are known as:
a. Bilateral contract
b. Unilateral contract
c. Gratuitous contract
d. Commutative contract
✅ Answer: a. Bilateral contract

111. One of the following is not a real contract:

a. Pledge
b. Commodatum
c. Lease
d. Mutuum
✅ Answer: c. Lease

112. It is present when one of the contracting parties 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, descendants, and ascendants to obtain consent:
a. Violence
b. Physical coercion
c. Intimidation
d. Mistake
e. Fraud
✅ Answer: c. Intimidation

113. Which of the following statements is true?

a. In facultative obligation, there are two or more objects which are due but the performance of one is
sufficient to extinguish obligation.
b. The creditor, in pursuing his claims against the debtor, can compel the debtor to perform the service
in obligations to do.
c. As a rule, contracts are effective and binding only between the parties, their assigns, and their heirs.
d. “Relativity of contracts” is a principle that contract must bind both contracting parties; its validity or
compliance cannot be left to the will of one of them.
e. In the interpretation of contracts, when the motive of one of the contracting parties is contrary to law
the contract is void.
✅ Answer: c. As a rule, contracts are effective and binding only between the parties, their assigns, and
their heirs.

114. Which of the following statements is false?

a. Contracts entered during a state of drunkenness or during a hypnotic spell are void.
b. Although the cause is not stated in the contract, it is presumed that it exists and is lawful.
c. Void or inexistent contracts are not subject to ratification.
d. A contract is voidable by reason of fraud if such fraud is so serious and should have not have been
employed by both contracting parties.
e. Last wills and testament are not subject to reformation.
✅ Answer: a. Contracts entered during a state of drunkenness or during a hypnotic spell are void.

115. Which of the following statements is true?

a. “Mutuality of contracts” is a principle advocating that any third person who induces another to violate
his contract shall be liable for damages to the other contracting party.
b. In void or inexistent contracts, the action or defense for declaration of nullity or inexistence of such
contracts does not prescribe.
c. Unenforceable contracts are less defective than voidable contracts.
d. Mistake as to the substance of the thing which is the object of the contract will not make a contract
voidable.
e. A contract does not become voidable by reason of violence or intimidation if the same was done by
persons not party to the contract.
✅ Answer: b. In void or inexistent contracts, the action or defense for declaration of nullity or
inexistence of such contracts does not prescribe.

116. Which of the following statements is false?

a. Unenforceable contracts are contracts which may appear to be valid and have all the necessary
elements to be enforceable, but have some type of flaw which could cause one or both of the parties to
void the contract.
b. In quasi-delict, there is no pre-existing contractual relation between the persons involved.
c. As a rule, the debtor is not liable if his failure to preserve the thing is not due to his fault or
negligence, but to fortuitous events or force majeure.
d. There is no need to make a demand to put the debtor in delay when time is of the essence of the
contract.
e. Oral contract of agency giving authority to an agent to sell the land belonging to the principal is not
valid.
✅ Answer: a. Unenforceable contracts are contracts which may appear to be valid and have all the
necessary elements to be enforceable, but have some type of flaw which could cause one or both of the
parties to void the contract.

117. What is the principle of rebus sic stantibus?

a. Under this theory, the parties stipulate in the light of certain prevailing conditions, and once these
conditions cease to exist the contract also ceases to exist.
b. This theory pertains to the freedom of the parties to stipulate.
c. It pertains to principle of civil law that a contract can only bind the parties who had entered it, their
heirs and assigns.
d. The principle provides for the provision in favor of a third person not a party to the contract.
✅ Answer: a. Under this theory, the parties stipulate in the light of certain prevailing conditions, and
once these conditions cease to exist the contract also ceases to exist.

118. The following are the requisites to avail of reformation, except

a. There is meeting of the minds between the parties
b. The true intention is not expressed in the instrument
c. The failure to express the true intentions is due to mistake, fraud, inequitable conduct or accident.
d. The mistake, fraud, inequitable conduct or accident prevented the meeting of the minds of the
parties.
✅ Answer: d. The mistake, fraud, inequitable conduct or accident prevented the meeting of the minds
of the parties.

119. Which of the following statement is false?

a. Consensual contracts are perfected by mere consent
b. If the contract is real, it is not perfected until the delivery of the object of the obligation.
c. If the contract is solemn, the law requires that a contract be in some form to be valid.
d. Unenforceable contracts are void contracts.
✅ Answer: d. Unenforceable contracts are void contracts.

120. Reformation is not possible for the following except

a. Simple donation inter vivos with no conditions imposed.
b. Wills
c. When the real agreement is void
d. When contract is vitiated by fraud, mistake, undue influence or intimidation.
✅ Answer: d. When contract is vitiated by fraud, mistake, undue influence or intimidation.

121. Mr. Y sold his car to Mr. Z stating that the car is in good condition. Mr. B bought the car. Later, the
car developed engine trouble. Is the contract voidable?
a. Yes, since there was misrepresentation on the part of Mr.Y.
b. No, the contract is valid, Mr Y not being an expert mechanic and Mr Z relied on the representation.
c. No, since there was no meeting of minds and the contract is void.
d. Yes, since Mr Y failed to warrant that the property is free from hidden defects.
✅ Answer: a. Yes, since there was misrepresentation on the part of Mr.Y.

122. The contract between two minors is

a. Valid
b. Voidable
c. Rescissible
d. Unenforceable
✅ Answer: d. Unenforceable

123. What is in pari delicto rule

a. That one of the parties in illegal contract have right to enforce the contract.
b. That having entered in illegal contract, neither party can seek relief from court and each must bear
the consequences of his acts.
c. That the less guilty party in a contract can seek relief from court.
d. The both parties in illegal contract, can recover what the other has given by virtue of the contract.
✅ Answer: b. That having entered in illegal contract, neither party can seek relief from court and each
must bear the consequences of his acts.

124. Which of the following is true?

a. When a right to sue upon a civil obligation has lapsed by extinctive prescription, the obligor who
voluntarily performs the contract cannot recover what he has delivered or the value of the service
rendered.
b. When without the knowledge or against the will of the debtor, a third person pays a debt which the
obligor is not legally bound to pay because the action thereon prescribed, but the debtor voluntarily
reimbursed the third person, the obligor can recover what he has paid.
c. When, after an action for civil obligation has failed the defendant voluntarily performs the obligation,
he can still demand the return of what has been delivered.
d. When a testate or intestate heir voluntarily pays a debt of the decedent exceeding the value of the
property he received by will, the payment is invalid and can be rescinded by the payor.
✅ Answer: a. When a right to sue upon a civil obligation has lapsed by extinctive prescription, the
obligor who voluntarily performs the contract cannot recover what he has delivered or the value of the
service rendered.

125. What is the effect in contract of dolo causante?

a. Void
b. Voidable
c. Rescissible
d. Unenforceable
✅ Answer: b. Voidable

126. Mr Y was appointed by the court as guardian of minor Z who owns a lot with a value of P5million.
Mr A sold the lot of Z without court order for P2.5 million. The contract is __
a. Void
b. Voidable
c. Rescissible
d. Unenforceable
✅ Answer: c. Rescissible

127. Which of the following contracts is valid and enforceable?

a. A contract where there was want of cause
b. A contract where a party gave his consent in a moment of drunkenness.
c. A contract where a party gave his consent because the other party threatened to kill the first party's
spouse.
d. A contract where a party gave his consent because the other party threatened to sue him for an
unpaid debt.
✅ Answer: d. A contract where a party gave his consent because the other party threatened to sue him
for an unpaid debt.

128. For P100,000.00 cash, B bought from S a car which B intended to use in a bank robbery. S was not
aware of the intention of B. The sale of the car by S to B is:
a. Rescissible
b. Void
c. Valid
d. Voidable
e. Unenforceable
✅ Answer: c. Valid