Bachelor of Science in Entrepreneurship

Final Term Exam Questionnaire in Law 11 (Obligations and Contracts)

First Semester A.Y.: 2022-2023

NAME: _____________________________________________ PERMIT NO:

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SECTION: ___________________________________________ SCORE:
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This examination consists of three (3) parts; MULTIPLE CHOICE, TRUE OR FALSE and ESSAY.

PART I.

MULTIPLE CHOICE. Choose the letter of the correct answer. Encircle the letter that corresponds
your answer.

1. The law on contracts is provided for in ___ of the New Civil Code of the Philippines.
a. R.A. 8534 b. R.A. 364 R.A. 386 d. R.A. 324
2. Any contracting party who violates a valid contract may be sued to comply and may also be asked
to pay _________ to the aggrieved party.
a. damage b. money c. damages d. punishment
3. A contract is considered _____ when given through mistake, violence intimidation, undue influence
or fraud.
a. Void b. Valid c. Conditional d. Compellable
4. A contract is in the stage of conception when:
a. The parties come to an agreement. b. There is meeting of the minds.
c. The contract is perfected. d. Negotiations are in progress.
5. A defective contract where damage or lesion is essential.
a. Rescissible b. Voidable c. Unenforceable d. void
6. This type of contract is perfected after certain formalities are complied with.
a. contracts b. real contracts c. solemn contracts d. consensual
contracts
7. Three of the following contracts are void. Which one is not?
a. Oral contract of partnership of three partners and capital contribution is more than P3, 000
in cash.
b. Written contract contemplating impossible services.
c. Oral contract of partnership where real estate is contributed as capital.
d. Agent’s authority to sell land is given orally.
8. The following are void or inexistent contracts, EXCEPT:
a. those expressly prohibited or declared void by law
b. those which are absolutely simulated or fictitious.
c. those which contemplate possible service
d. those which object is outside the commerce of men.
9. This person is capacitated to enter into a contract.
a. intoxicated person b. deaf-mute who knows how to write
c. sane persons d. persons who are of legal age
10. It is the subject matter of the contract.
a. object certain b. cause c. negotiation d. bargaining
11. The following are essential requisites of a contract, EXCEPT:
a. consideration b. consent c. subject matter d. form
12. This remedy may only be availed of by the injured party if it has no other legal means of seeking
redress or reparation for the damages caused.
a. annulment b. right of defrauded creditors c. reformation d. rescission
13. The following are elements of undue influence, EXCEPT:
a. power over the will of another
b. deprivation of the latter’s will of a reasonable freedom of choice
c. the fact that proper influence was exerted
d. a person who can be influenced
14. The following are examples of real contracts, EXCEPT:
a. deposit b. commodatum c. pledge d. mortgage
15. How can unauthorized contracts be cured?
a. By rescission b. By subrogation c. By ratification d. By remission
16. According to this principle, the stipulations of the parties in a contract are the law between them.
a. relativity of contracts b. mutuality of contracts
c. principle of relativity d. autonomy of contracts
17. When will real contracts, such as deposit, pledge or commodatum be perfected?

a. Before the delivery of the

object of the obligation
b. By the delivery of the object of
the obligation
c. By mere consent
d. It will never be perfected
a. Before the delivery of the
object of the obligation
b. By the delivery of the object of
the obligation
c. By mere consent
d. It will never be perfected
a. Before the delivery of the object of the obligation
b. By the delivery of the object of the obligation.
c. By mere consent.
d. It will never be perfected.
18. The following are characteristics of voidable contract, EXCEPT:
a. it may be ratified b. defect is due to incapacity or vitiated consent
c. may be cured by prescription d. it produces no effects ‘til ratified
19. These are considered vices of consent.
a. minority, incapacity, threat, intimidation
b. mistake, undue influence, intimidation, incapacity, error, violence
c. intimidation, undue influence, mistake, violence
d. intimidation, undue influence, error, fraud, violence
20. Through insidious words or machinations, Mr. A was able to induce Mr. B to enter into a contract
which without them Mr. B would not have agreed to it. There is:
a. Fraud b. Undue influence c. Mistake d.
Misrepresentation
21. This type of contract is perfected after the object of the contract is delivered.
a. real contract b. consensual contract c. literal contract d. contract
22. This kind of defective contract is considered valid until rescinded.
a. rescission b. void c. rescissible c. voidable
23. These types of defective contracts produce legal effects until they are annulled or rescinded.
a. illegal and authorized contracts b. voidable and rescissible contracts
c. voidable and void contracts d. unauthorized and void contracts
24. During this stage, the parties agree on all of the essential elements of the contract.
a. perfection b. negotiation c. transaction d. cause or
consideration
25. This contract is perfected upon the meeting of minds of the contracting parties.
a. contract to sell b. voidable contract c. real contract d. consensual contract

It is the meeting of minds

26.

between two persons whereby

one binds himself with respect to
the other
to give something or to render
some services
It is the meeting of minds
between two persons whereby
one binds himself with respect to
the other
to give something or to render
some services
It is the meeting of minds
between two persons whereby
one binds himself with respect to
the other
to give something or to render
some services
26. It is the meeting of minds between two persons whereby one binds himself with respect to the
other to give something or to render some services.
a. Obligation b. Contracts c. Quasi-delicts d. Condition
27. A contract that has not yet performed.
a. Executory contracts b. Implied contracts
c. Executed contracts d. Express contracts
28. A stage of contract that includes all the initial stages up to the time the parties agree upon the
terms of the contract.
a. Consummation b. Preparationc. Separation d. Perfection
29. This is a temporary period of sanity.
a. Licit b. Lucid c. Lucid Intervald. Temporary Interval

30. These are the particular stipulations, clauses, terms or conditions established by the parties in their
contract.
a. Incidental Elements b. Natural Elements
c. Accidental Elements d. Essential Elements
31. The following are requisites of cause EXCEPT:
 a. It must be true b. It must be lawful
c. It must be unlawful d. It must exist.
32. The following are kinds of defective contracts, EXCEPT:
a. unenforceable b. voidable c. rescissible d. valid
33. The warranty against hidden defects in a contract of sale is an example of:
a. natural element b. accidental element
c. essential element d. original element
34. A contract which does not have any specific name or designation in law:
a. innovative contract b. innominate contract
c. inominate contract d. nominate contract
35. By this principle, contracts take effect only upon the contracting parties, their assigns
or successors in interest.
a. Principle of mutuality b. Principle of relativity
c. Freedom to stipulate d. Principle of relation

PART II

True or False. Write “True” if the Statement is True. Write “False” if the statement is false.

_________36. If the words used in the contract is clear, the evident intention of the parties should
always prevail.
_________37. The party who caused the voidability of the contract should be the one to initiate an
action for annulment of a contract.
_________38. Statute of Frauds may also apply to executory contracts or those where no performance
has yet been made.
_________39. Contracts must be in writing in order to be valid.
_________40. Void contract/s can be ratified.
_________41. A contract is considered void if one of the essential requisites is not present.
_________42. Contracts validly agreed upon may be rescinded in the cases established by law.
_________43. If there was no meeting of the minds because of fraud, the contract can be reformed.
_________44. A contract that has already been performed is considered an executed contract.
_________45. Damages are the harm, hurt, or loss one acquires from an injury.

If a party allege some defect in a

contract as a reason for
invalidating
it, it must be proved by him by
convincing evidence
_________46. If a party alleges some defect in a contract as a reason for invalidating it, it must be
proved by him by convincing evidence.
_________47. Contract entered by parties both legally incapacitated is voidable.
_________48. Once a contract is perfected, valid contracts have the force of law between the parties
who are bound to comply therewith in good faith.
_________49. Violence refers to physical coercion; intimidation, to moral coercion.
_________50. The action for annulment of a voidable contract shall be brought within four years.
_________51. Special intent prevails over a general intent.
_________52. If there are several or various stipulations of a contract, the general rule is that, the
same shall be interpreted separately.
_________53. Contract entered by unauthorized agents is unenforceable.
_________54. A contract with a subject matter which is prohibited by law is voidable.
_________55. The terms or words used in the contract must always be interpreted in its general sense.
_________56. Any contract that is not in writing is not enforceable.
_________57. In a contract of donation where the donor is already deceased, the contract must be in
writing to be deemed valid.
_________58. Quasi-contracts are not actual contracts.
_________59. Provision on penalties is an example of natural elements of a contract.
_________60. Consent can be given by either party for a contract to be valid.

PART III

ESSAY. Answer the question in a brief and concise manner. Write your answer in the space/s
provided. Answers without reasons or justifications will not be given credit/s.

61-65. Mr. A agrees to receive P3, 500.00 for his shoes and Mr. B agrees to take the shoes for the
amount. This refers to what stage of the contract? EXPLAIN. (5 points)

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66-70. Mr. C sold Mr. D his house including “all the furniture therein”. Suppose half of the
furniture belonged to a relative of Mr. C who had asked him for permission to leave them there
temporarily, should such furniture be included? EXPLAIN. (5 points)

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