OBLIGATIONS AND CONTRACTS

NAME:________________________________________________________________________
SECTION_____________________________
DATE:_____________________________
I.

IDENTIFICATION
1. ____________________It is a meeting of the minds between two
persons whereby one binds himself, with respect to the other, to
give something or to render some service.
2. ____________________ A preparatory contract in which one party
grants to the other, for a fixed period and under specified
conditions, to decide whether or not to enter into a principal
contract.
3.
____________________ Remedy by means of which a written
instrument is made or construed so as to express or co form to the
real intention of the parties when some error or mistake has been
committed.
4. _____________________ Contracts which are valid but are defective
because of injury or damage to either of the contracting parties or
to third person.
5. _____________________ Contracts which possess all the essential
elements for validity but the consent is vitiated.
6. _____________________ Contracts which have absolutely no force and
effect and are inexistent from the very beginning.
7. ______________________ Contracts which cannot be enforced in court
or sued upon by reason of defects provided by law until and unless
they are ratified accordingly.
8. ______________________ Means stipulation in favor of third person.
9. ______________________ Means let the buyer beware.
10.
______________________ Means both parties are at fault.

II.

TRUE OR FALSE
1. _____________ Voidable contracts cannot be ratified.
2. _____________ Contracts entered into during lucid interval are
voidable.
3. _____________ Consensual contract are not perfected until delivery of
the object of the obligation.
4. _____________ Real contracts are perfected by mere consent.
5. _____________ Void contracts cannot be ratified.
6. _____________ The action or defense for the declaration of the
inexistence of void contract does not prescribe.
7. _____________ Qualified acceptance is considered a counter-offer.
8. _____________ Dolocausante shall make a contract voidable.
9. _____________ Doloincidente only obliges the person employing it to
pay damages.
10.
_____________ Unless it appears otherwise, a business
advertisement is merely an invitation to make an offer.

III.

Multiple Choice
1. Before acceptance is conveyed, an offer becomes ineffective upon
the:
a. Death
d. insolvency of either party
b. Civil interdiction
e. all of the above
c. Insanity

2. Reluctantly and against her good sense and judgment, Rosemarie

entered into a contract for the delivery of five tables to Corazon for
a price of P5000. Contract is:
a. Void
c. Unenforceable
b. Voidable
d. Valid
3. Which is the least defective contract:
a. Rescissible contract c. Unenforceable contract
b. Voidable contract
d. Void contract
4. G was appointed guardian of S, the latter being 16years old. S sold
his parcel of land in writing to B valued at P100,000 for P75,000,
suffering lesion by 1/4 of the value. What is the status of the
contract:
a. Rescissible
c. Enforceable
b. Unenforceable
d. Voidable
5. Three of the following contracts are void. Which is the exception?
a. Those whose cause, object, or purpose is contrary to laws,
morals, good customs, public order or public policy
b. Those whose absolutely simulated or fictitious
c. Those whose cause or object did not exist at the time of the
transaction.
d. Those where both parties are incapable of giving consent to a
contract.
6. A contract where both parties are incapable of giving consent is:
a. Rescissible
d. Void
b. Voidable
e. none of the above
c. Unenforceable
7. A contract whereby the offeree is given by the offeror a certain
period of time which to buy or not to buy a certain thing for a
certain price is called:
a. Option contract
c. Contract to sell
b. Contract of sale
d. Barter
8. D id indebted to C in the sum of P10,000. For the purpose of
avoiding the claims of C, D donated all his properties worth the
same amount to X.
a. The contract is absolutely simulated
b. The contract is rescissible
c. The contract is merely voidable
d. The contract is void
9. Which of the following contract is voidable?
a. Those whose object is outside the commerce of men.
b. Those which are absolutely fictitious.
c. Those where one of the parties is incapacitated
d. Those which contemplate an impossible service.
10.
Three of the following transactions are void, which is the
exception?
a. Oral contract of partnership the capital is P3,000 or more.
b. Contracts in writing contemplating impossible service.
c. Authority of the agent orally made in sale of immovable property.
d. Oral contract of partnership whenever immovable property is
contributed.
11.
Which of the following 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
12.
Simulation of contract absolute or relative. Relative when:
a. Parties not bound at all

b. The contract is void

c. The parties conceal their true agreement
d. None of the above
13.
Which of the following is not enforceable even if not reduced
in writing:
a. Contract executed by one of the parties in a contract.
b. Representation as to the credit of a third person
c. Lease of immovable for a period longer than one year
d. Agreement for the sale of immovable property
14.
A intimidated B to marry his daughter. After a year, B would
like to file action for annulment but could not do so because A was
around to intimidate him. The marriage contract is:
a. Rescissible
c. Void
b. Voidable
d. Unenforceable
15.
Type of defective contract that create rights and impose no
obligation, but are susceptible of ratification.
a. Voidable
c. Rescissible
b. Unenforceable
d. Void
16.
A contract where one of the contracting parties is incapable of
giving consent is:
a. Rescissible
d. Void
b. Voidable
e. None of the above
c. Unenforceable
17.
Valid until annulled unless there has been ratification.
a. Rescissible contract c. voidable contract
b. Inexistent contract d. None of the above
18.
Contract which has no effect at all and cannot be ratified is:
a. Unenforceable
c. Voidable
b. Void
d. All of them
19.
Contract that is made for valuable consideration is:
a. Onerous
c. onerous and gratuitous
b. Gratuitous
d. none of the above
20.
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
IV.

ENUMERATION
1. Characteristics of Contracts.
2. Who are the persons incapacitated to give consent.
3. What are the vices of consent.
4. What are the essential requisites of contract.
5. Kinds of defective contracts

PREPARED BY:
ATTY. MARICEL A. RAMIL, CPA
R. MAURICIO, M.A. Ed.
Instructor
COC

CHECKED BY:

APPROVED BY:

JONATHAN B. DE VEYRA, MBA, CPA VIVIEN

Dept. Chair-CBA

Dean-