Practice Set Eight
(Articles 1361-1369)
True / False
1) The instrument may be reformed when a mutual mistake of the parties causes
the failure of the instrument to disclose their real agreement.
2) Simon and Alvin entered into a contract. In the contract as written, Simon was
clearly mistaken and Alvin acted inequitably, thus, the instrument does not show
their true intention. In this case, Alvin may ask for the reformation of the
instrument.
3) The instrument may not be reformed when one party was mistaken and the
other knew that the instrument did not state their real agreement but concealed
that fact from the party who was mistaken.
4) Through the ignorance on the part of the person drafting the instrument, such
instrument does not express the intention of the parties. In such case, said
instrument is considered void and without effect.
5) Simon and Alvin entered into a contract where Simon will mortgage his house to
Alvin as a security for his (Simon’s) loan of P100,000. In the written instrument,
it states that Simon sold absolutely his house to Alvin for the sum of P100,000.
In this case, the proper course of action is reformation of the instrument.
Multiple Choice
6) In which of the following contracts is reformation of the instrument not
applicable?
a) The real agreement turns out to be void
b) The real intention of the parties is not reflected in the instrument through the
negligence of the typist
c) The contract is a valid contract
d) There is inadequacy of price
7) Simon and Theodore entered into a contract where Simon will mortgage his
house to Theodore as a security for his (Simon’s) loan of P100,000. In the
written instrument, it states that Simon sold absolutely his house to Theodore for
the sum of P100,000. The two friends then agreed that since the contract states
that such is a sale, they might as well increase the price to P500,000. Since
Theodore was not able to pay on time, Simon then demanded from Theodore,
through a court action, the payment of the sum of P500,000. What further
action can Simon bring in this case?
a) Simon can ask for the reformation of the instrument
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b) Simon can continue with the case but can no longer ask for the reformation
of the instrument since he had already brought an action to enforce such
instrument
c) Simon can continue with the case and can ask for the reformation of the
instrument pending the decision of the court
d) Simon can continue with the case and ask Theodore to pay interest on the
sum of P500,000
8) Simon and Theodore entered into a contract and somehow mutual mistake was
incurred as such by both parties in such a way that the instrument does not
show their true intention. Choose which is true of the following
a) The contract is considered inexistent
b) Only Simon can ask for the reformation of the instrument
c) Simon can ask for the reformation of the instrument
d) Only Theodore can ask for the reformation of the instrument
9) Theodore and Alvin entered into a contract and through the discovery of mutual
mistake in the instrument, decided to ask for the reformation thereof. What
procedure do they have to follow for such reformation of the instrument?
a) They will have to come up with their own procedure on how to reform such
instrument
b) They can ask a third person to come up with the procedure on how to reform
such instrument
c) They can go to court and ask the court to outline the procedure on how to
reform such instrument
d) They can refer to the rules of court as promulgated as such by the Supreme
Court
10)Theodore and Alvin entered into a contract where Theodore offered to buy the
coconut farm of Alvin and Alvin agreed to sell to Theodore his banana plantation.
What can be said of the contract if such is contained in a private document?
a) The contract is void since there is no meeting of the minds on the object
b) Theodore can ask for the reformation of the instrument since he was the one
who made the offer, hence, he can control the narrative of the instrument
c) The parties can go to a lawyer and ask the lawyer to interpret and notarize
the contract for them
d) The contract is voidable since it is clear that there has been a mutual mistake
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Answer Key
True / False
1) True
2) False
3) False
4) False
5) True
Multiple Choice
6) A
7) B
8) C
9) D
10)A
