601. Those which possess all the essentials 606.

What is the prescriptive period for filing

requisites of a valid contract but one of the an action for annulment of a voidable
parties is incapable of giving consent. contract?

A. Rescissible Contract A. Three years

B. Void Contract B. Four years
C. Voidable Contract C. Five years
D. Unenforceable Contract D. Six years

602. The following contracts are voidable 607. When should the computation of
even though there are no damage to the prescriptive period begin for an action
contracting parties arising from intimidation, violence or undue
influence
A. Those where one of the parties is
incapable of giving consent to a contract A. From the time of the discovery of the
B. Those where the consent is vitiated by same
mistake, violence, intimidation, undue B. From the time the guardianship ceases
influence or fraud C. From the time the defect of the
C. Neither A or B consent ceases
D. Both A and B D. From the time it was discovered

603. G was appointed guardian of S, the 608. When should the computation of
latter being 16 years old. S sold his parcel prescriptive period begin for an action
of land in writing to B valued at P100,000 arising from vitiation of consent due to
for P75,000, suffering lesion by 1/4 of the minority or other forms of incapacity?
value. What is the status of the contract?
A. From the time of the discovery of the
A. Voidable same
B. Enforceable B. From the time it was discovered
C. Unenforceable C. From the time the defect of the consent
D. Rescissible ceases
D. From the time the guardianship
604. Consent, as an element of contracts, ceases
must be intelligent and free. Factors that
impair intelligence are 609. When should the computation of
prescriptive period begin for an action
A. Minority arising from mistake or fraud?
B. Fraud
C. Insanity A. From the time of the discovery of the
D. All of the above same
B. From the time it was discovered
605. This is a remedy provided by law, for C. From the time the defect of the consent
reason of public interest, for declaration of ceases
the inefficacy of a contract based on a D. From the time the guardianship ceases
defect or vice in the consent of one of the
contracting parties in order to restore them
to their original position 610. What is the status of a voidable
contract before it is annulled by a
A. Voidable competent court?
B. Annulment
C. Rescissible A. It is valid
D. Defect B. It is void
C. It is unenforceable
D. It is rescissible B. Voidable
C. Rescissible
611. What are the legal consequences for failure D. Void
to pursue the action within the period prescribed
by law? 617. How may ratification be effected

A. The nullity of the contract can no longer set A. Expressly

up a defense to an action to enforce the same B. Tacitly
B. The nullity of the contract is deemed C. Impliedly
unenforceable D. All of the above
C. The nullity of the contract can no longer be
rescinded
618. Implied effect of ratification may take
diverse forms such as
D. The nullity of the contract can no longer be
valid A. By silence or acquiescence
B. By acts showing adoption or approval of
612. This contract without effect unless the contract
ratified C. By acceptance and retention of benefits
flowing therefrom
A. Marriage between first degree cousins D. All of the above
B. Contract of sale between two insane
persons 619. The following are the requisites of
C. Contract of sale between husband and implied ratification, except
wife
D. Donation between husband and wife A. It cannot give rise to a valid contract
B. There must be knowledge of the reason
613. A contract entered into by an which renders the contract voidable
incapacitated person is C. Such reason must have ceased
D. The injured party must have executed an
A. Void act which necessarily implies an intention to
B. Rescissible waive his right
C. Voidable
D. Unenforceable 620. Overcoming a person’s will through
force is
614. Aside from fraud and undue influence,
the following are vices of consent, except: A. Fraud
B. Duress
A. Violence C. Extortion
B. Mistake D. Ratification
C. Intimidation
D. Dealer’s talk 621. A deliberate deception to secure unfair
or unlawful gain
615. Contracts entered into in a state of
drunkenness or during a hypnotic spell are A. Misrepresentation
B. Libel
A. Valid C. Unilateral mistake
B. Rescissible D. Fraud
C. Voidable
D. Void 622. People sometimes enter into ____
contracts without saying a word
616. A contract entered into by an insane
person during a lucid interval is A. Voidable
A. Valid B. Express
C. Unenforceable dealer correct?
D. Implied
A. A minor is responsible for the fair value
623. Alex persuaded his grandmother, of necessities
Clara, to sell him her car for $1,000. They B. Contracts of minor are voidable
both knew the car was worth much more C. Contracts of minor are void
than that. However, Clara did not need the D. An adult may choose to enforce a
car anymore and loved her grandson, so contract made with a minor
she agreed to sell him the car. The next day
Clara found out that Alex was planning to 628. Can contracts entered by
sell the car to a friend for $6,000. Clara can incapacitated persons be ratified by their
avoid the contract because of guardians?

A. Duress A. Yes
B. Fraud B. No
C. Undue influence C. Maybe
D. Mistake D. Definitely

624. A minor has the right to avoid a 629. S, a minor, sold his land to B. Upon
contract reaching the age of the majority, S, with full
knowledge of his rights in the premises,
A. True instead of repudiating the contract,
B. False disposed of the greater part of the
C. Neither a or b proceeds, or collected the unpaid balance
D. Both a and b of the purchase price from B.

625. A legal means of enforcing a right or A. It is an express ratification

correcting a wrong is an B. It is a tacit ratification
C. It is ceased
A. Breach D. There is no ratification
B. Remedy
C. Avoidance 630. The following may ratify entered by an
D. Beneficiary incapacitated person, except

626. After reaching the age of majority, a A. Guardian

person may _________________________ B. Injured party himself provided he is
a contract made during minority by using, already capacitated
selling, or keeping the item, or by making C. Legal representative
payments D. The incapacitated person

A. Confirm 631. B forced S to sell the latter’s horse.

B. Disaffirm Later, the horse gave birth to a colt. If S
C. Sign should ratify the contract after the birth of
D. Ratify the colt, who is entitled to the colt?

627. Charles Kubert, 17, wanted to buy a A. S because ratification has a

car. His father offered to help him, but he retroactive effect
insisted on doing it himself. Accordingly, he B. B because he was the one who sold the
purchased a brand new Corvette. A week horse
later, Charles saw a TransAm he liked C. The buyer since it was B who sold the
better. He took the Corvette back to the latter’s horse
dealer. The car dealer told Charles that he D. Nobody owns the colt
could not disaffirm the contract. Is the car
632. The entitlement to bring an impending D. Revoked
action to annul are the following except
637. Default on the part of both parties
A. The plaintiff must have an interest in the because neither has completed their part in
contract their reciprocal obligation
B. The victim not the party responsible for
the defect is the person who must assert A. Mora solvendi
the same B. Mora accipiendi
C. The injured party himself provided he C. Compensatio morae
is already incapacitated D. Debtor’s fault
D. A and B
638. Is the lgeal invasion of a legal right?
633. What is the status of a voidable
contract not ratified? A. Injury
B. Grievance
A. It is effective and valid C. Damage
B. It is unenforceable D. Damages
C. It is rescissible
D. It is void 639. When the amount is known or is
determinable by inspection of the terms and
634. S sold his plow and carabao to B. On conditions of the relevant promissory notes
the petition of S, the contract was annulled and related documentation
by the court. But the carabao died in the
possession of B through his fault. A. Debt is due
B. Debt is demandable
A. B must pay the value of the carabao at C. Debt is liquidated
the time of his death D. Debt is unliquidated
B. B must give him a new carabao in lieu of
the death of the carabao 640. I. In compensatio morae, the parties
C. B must pay the interest of the death of cancel out the effects of default, such that is
the carabao as if no one is guilty of delay
D. S cannot take the carabao back II. In reciprocal obligations, as in a contract
of sale, the general rule is that the
635. Consideration in a contract means fulfillment of the parties’ respective
that: obligations should be simultaneous

A. A person has the mental capacity to A. Only I is true

enter into a contract. B. Only II is true
B. The two parties deal with the contract in C. Both are true
a polite manner. D. Both are false
C. The contract is legal and fully valid.
D. Something of value is being 641. Is the hurt, loss or harm which results
exchanged by the two parties. from the injury?

636. The action for annulment of contracts A. Loss

shall be _____ when the thing which is the B. Grievance
object thereof is lost through the fraud or C. Damage
fault of the person who has a right to D. Damages
institute the proceedings
642. Are the recompense or compensation
A. Extinguished awarded for the damage suffered?
B. Rescinded
C. Annulled A. Loss
B. Grievance II. Dolo causante is not the reason that
C. Damage induced the party to enter into a contract
D. Damages
A. Only I is true
643. Which is not a mode of voluntary B. Only II is true
breach of the obligation? C. Both are true
D. Both are false
A. Fraud
B. Acts or omissions punished by law 650. I. Dolo incidente is a fraud which
C. Negligence renders the contract voidable
D. Delay II. Dolo causante is a fraud which renders a
party liable for damages
645. Which is a mode of involuntar breach
of the obligation A. Only I is true
A. Fraud B. Only II is true
B. Fortuitious event C. Both are true
C. Negligence D. Both are false
D. Delay
651. I. The action or defense for the
646. Is basically a deception used by one declaration of the inexistence of a contract
party prior to or simultaenous with the does not prescribe
contract, in order to secure the consent of II. The action for annulment must be
the other? brought within 6 years from the time the
intimidation, violence or undue influence
A. Incidental fraud ceases, or 6 years from the time of the
B. Subsidiary fraud discovery of the mistake or fraud
C. Causal fraud
D. Contributory fraud A. Only I is true
B. Only II is true
647. It refers to all kinds of deception, C. Both are true
whether through the insidious machination, D. Both are false
manipulation, concealment, or
misrepresentation, that would lead as 652. I. A void or inexistent contract is one
ordinarily prudent person into error after which has no force and effect from the very
taking the circumstances into account. beginning
II. A voidable or annullable contract is one in
A. Contravention of the tenor of the which the essential requisites for validity are
obligation present
B. Mora
C. Culpa A. Only I is true
D. Fraud B. Only II is true
C. Both are true
648. That which is not serious in character D. Both are false
and without which the other party would
have entered into the contract anyway 653. I. Donations between spouses during
marriage are not prohibited
A. Incidental fraud II. The imposition of an unconscionable rate
B. Subsidiary fraud of interest on a money debt, even if
C. Causal fraud knowingly and voluntarily assumed, is
D. Contributory fraud immoral and unjust

649. I. Dolo incidente is a fraud which A. Only I is true

induces a party to enter into a contract B. Only II is true
C. Both are true C. Unenforceable contract
D. Both are false D. Void contract

654. The parties state a false cause in the 659. I. An action for annulment of contract is
contract to conceal their real agreement one filed where consent is vitiated by lack of
legal capacity of one of the contracting
A. Absolute simulation parties, or by mistake, violence,
B. Relative simulation intimidation, undue influence or fraud
C. Complete simulation II. An action for declaration of nullity of
D. Mixed simulation contract presupposes a void contract

655. I. Stipulations authorizing the A. Only I is true

imposition of iniquitous or unconscionable B. Only II is true
interest are contrary to morals, if not against C. Both are true
the law D. Both are false
II. Simulation of a contract may either be
absolute or relative 660. I. A contract which is the direct result of
a previous legal contract, is also a void in
A. Only I is true existence.
B. Only II is true II. It is a well settled doctrine that is
C. Both are true between parties to a contract, validity
D. Both are false cannot be given to it by estoppel if it is
prohibited by law or it is against public
656. I. A contract without consideration is a policy
voidable contract
II. One of the characteristics of a voidable A. Only I is true
contract is that it produces no effect B. Only II is true
C. Both are true
A. Only I is true D. Both are false
B. Only II is true
C. Both are true 661. I. Lack of consent and consideration in
D. Both are false the deed of sale makes the sale voidable
altogether and render them subject to
657. I. In pari delicto doctrine applies only to attack at any time.
contracts with illegal consideration or II. The defect of inexistence of a contract is
subject matter, whether the attendant facts permanent and incurable hence, it cannot
constitute an offense or misdemeanor or be cured either by ratification or by
whether the consideration involved is prescription
merely rendered illegal
II. One of the characteristics of a void or A. Only I is true
inexistent contract is that it does not B. Only II is true
produce any effect C. Both are true
D. Both are false
A. Only I is true
B. Only II is true 662. Parties to a void agreement cannot
C. Both are true expect the aid of the law; the courts leave
D. Both are false them as they are

658. Is one which has no force and effect A. In pari delicto

from the very beginning? B. Ratification
C. Annulment
A. Rescissible contract D. Rescission
B. Voidable contract
 C. Both are true
663. In equal fault means: D. Both are false
A. Ratification
B. Annulment 668. I. Negligence signifies willfulness or
C. In pari delicto deliberate intent to cause damage or injury
D. Rescission to another
II. Negligence signifies mere want of care or
664. The following are the exception to the diligence and not the voluntariness of act or
rule on pari delicto, except: omission

A. The innocent party A. Only I is true

B. The debtor who pays a serious interest B. Only II is true
C. The party repudiating the void contract C. Both are true
before the illegal purpose is accomplished D. Both are false
or before damage is caused to a third
person and if public interest is observed by 669. I. In fraud, liability cannot be mitigated
allowing recovery by courts
D. The guilty party II. In negligence, liability may be mitigated
by courts
665. I. The rule is that the usurious loan
transaction is not a complete nullity but A. Only I is true
defective only with respect to the agreed B. Only II is true
interest C. Both are true
II. An excessive stipulated interest rate may D. Both are false
be void for being contrary to public policy,
and action said interest rate thus not 670. I. In fraud, waiver for future fraud is
prescribe void
II. In negligence, waiver for future
A. Only I is true negligence may be valid
B. Only II is true
C. Both are true A. Only I is true
D. Both are false B. Only II is true
C. Both are true
666. I. A contract that violates a constitution D. Both are false
and the law, is null and void and vests no
right and creates no obligation 671. The omission to do something which a
II. Equity as a rule will follow the law and will reasonable man, guided by those
not permit to be done indirectly which of considerations which ordinarily regulate the
public policy cannot be done directly. conduct of human affairs, would do; or the
doing which a prudent and reasonable man
A. Only I is true would not do
B. Only II is true
C. Both are true A. Breach of contract
D. Both are false B. Fraud
C. Negligence
667. I. The contract are not defined by the D. Delay
parties thereto but by principles of the law
II. In determining the nature of the contract, 672. It is want of care required by the
the courts are bound by the name of title circumstances
given to it by the contracting parties
A. Breach of contract
A. Only I is true B. Negligence
B. Only II is true C. Delay
D. Fraud B. Unilateral obligation
673. Is that conduct that naturally or C. Natural obligation
reasonably creates undue risk or harm to D. Specific obligation
others?
679. I. When what is to be delivered is a
A. Negligence generic thing, the creditor may compel the
B. Breach of contract debtor to make the delivery
C. Fraud II. If the thing to be delivered is a
D. Delay determinate thing the creditor mat ask that
the obligation be complied with at the
674. Negligence is direct, substantive, and expense of the debtor
independent. This pertains to:
A. Only I is true
A. Culpa civil B. Only II is true
B. Culpa contractual C. Both are true
C. Culpa aquilana D. Both are false
D. Contractual negligence
680. X alleged that Y promised to give X
675. This requires proof beyond reasonable one hectare of land. This in in consideration
doubt of X’s meritorious service to Y. Y pleads in
defense that since the promise was not in
A. Culpa civil writing, it is unenforceable under the Statute
B. Culpa contractual of Frauds. Decide.
C. Culpa aquilana
D. Culpa criminal A. The promise is unenforceable because it
is not in writing
676. Defense of a good father of a family in B. The Statute of Frauds is applied because
the selection and supervision of employees A has not rendered services already
is a proper or complete defense C. The Statute of Fraud is inapplicable
here because the promise to give the
A. Culpa civil land is not a sale of real property
B. Culpa contractual D. The Statute of Frauds can apply to
C. Culpa aquilana partially executed contracts
D. Culpa criminal
681. Three of the following contracts are
677. Which one of the following is not a void. Which is the exception?
requisite of mora solvendi?
A. Those who cause , object or purpose is
A. The obligation is demandable and contrary tto, moralm good custom, publiv
liquidated order or public policy
B. The obligation is not necessary B. Those which are absolutely simulated ir
demandable fuctious.
C. The debtor delays performance C. Those cause or object did not exist at the
D. The creditor judicially or extrajudicially time of the transaction
requires the debtor’s performance D.Those where both parties are
incapable of giving consent to a contract
678. Are those which arise from the same
cause, and which each party is a debtor and
a creditor of the other, such that obligation
of one is dependent upon the obligation of
the other?

A. Reciprocal obligation
 extinguisments of real rights.
B. The cessionm repudation, and
682. I. The defence of illegality of contract is renunciation of heredity rights.
not available to third persons whose interest C. Contract of guaranty
are not directly affected. D. Contract of partnership
II. A contrat whice is the direct result of
a previous illegal contract is valid. 687. It must be in writing to be enforceable:

A. Only I is true A. Lease of land for 12 months

B. Only II is true B. Lease of car for 18 months
C. Both are true C. All of the above
D. Both are false D. None of the above

683. I. Third person can attack the validity 688. A and B, who are both unemancipated
of unenforceable contracts. minors, entered into a contract.
II. The statute if frauds is not applicable The contract entered into by anf between
to contracts whice are either totally or them is:
partialy performed.
A. Rescissible
A. Only I is true B. Unenforceable
B. Only II is true C. Voidable
C. Both are true D. Void
D. Both are false
689. A orally leased to B his car for a term
684. A without authority from b sold the of 2 years. B has not taken possesion of the
latter’s car in the name of the latter. The car and A has not received and rental. The
contract us therefore: contracts is:
A. Rescissible
B. Voidable A. Voidable
C. Unenforceable B. Rescissible
D. Void C. Unenforceable
D. Enforceable
685. On jube 20, 2016, A and B agreed
verbally to form a partnership on june 25, 690. The following contracts are inexisten
2018 from the beginning except:

A. The contract is void because future A. Those whose cause, object or

property can’t be contributed to a purpose is contrary to law, morales,
universal partnershipof all present good custom, public order or public
property. policy.
B. It is voidable if the parties marry B. Those which are relatively
each other before they form the simulated or fictious.
partnership. C. Those whose cause or object did
C. Unenforceable, because it is not not exist at tje time of the transaction
in writing D. Those whose object is outside the
D. Void, because there is no public commerce of men
instrument of their agreement.

686. Which of the following contracts must

be in writing to be enforceable?

A. Acts and contracts for the creation,

transmission, modification, and
 the courts are bound by the name or title
691. I. An action to rescind is founded upon given to it by the contracting parties.
and presupposes the existence of a
contract. A. Only I is true
II. A contract whice is null and void is B. Only II is true
no contract at all and hemce, could not be C. Both are true
the subject of rescission D. Both are false

A. Only I is true 696. I. In case of void sale, the seller has no

B. Only II is true right whatsoever to keep the money paid by
C. Both are true virtue thereof and should refund it, with
D. Both are false interest at the legal rate.
II. Parties to a void agreement cannot
692. I. A void or inexistent contract is one expect the aid of the law; the courts leave
whice has no force and effect from the very them as they are, because they are
beginning. deemedn in pari delicto or “in equal fault”
II. A voidable or annullable contract is
one which the essential requistes fir validity A. Only I is true
are present. B. Only II is true
C. Both are true
A. Only I is true D. Both are false
B. Only II is true
C. Both are true 697. S sold to B his parcel of land worth
D. Both are false one million pesos for only half a million
pesos. After the sale and realizing his
693. G was appointed as the guardian of M damage, S is now seeking to set aside the
who owns a parcel of land valued at sale.
P1,000,000. M sold the land only for
P600,000 to B. The contract was defective A. The contract is voidable because of
because it is: mistake of the seller
B. It is rescissiblel because of the lesion or
A. Unenforceable damage suffered by S
B. Rescissible C. The sale is valid but unenforceable
C. Voidable D. The sale is valid, binding and
D. Void enforceable

694. I. A contract that violates the 698. A made a donation to B, A contracted

Constitution and the law, is null and void several debts. What A has left as assets are
and vests no right and creates no much less than his present liabilities. May
obligations the donation be rescinded?
II. Equity as a rule will follow the law and will
not permit that to be done indirectly which, A. No, because the debts were incurred
because of public policy, cannot be done after the donation
directly. B. No, if A gave guaranty or mortgage for
his debts
A. Only I is true C. Yes, because the donation is void being
B. Only II is true in fraud of creditors
C. Both are true D. Yes, because the contract is
D. Both are false unenforceable

695. I. Contracts are not defined by the

parties thereto but by principles of law
II. In determining the nature of a contract,
699. I. Guardian of W, sold W’s house
valued at P50,000 for P37,500
II. X sold his house valued at P500,000 for
only P300,000 because X did not know the
true value of the house
A. I and II are rescissible
B. Only I is rescissible
C. II is voidable because there is an error
D. Both contracts are valid and
enforceable

700. To defraud his creditor, A sold his

house to X. When however, the creditor
wanted to collect his credit, somebody lent
A enough money. Is the sale rescissible?

A. Yes, because it was entered into in fraud

of creditors
B. No, because the creditor can collect
the credit due him
C. No, because the debtor has become in
good faith when he was lent enough money
to pay his debts
D. Yes, because the debtor was in bad faith
when he sold the house to X