CONTRACTS

TESTBANK

I
nter
estagr
eedi
nthecont
rac
tisa/
an C. Null and void
A. Essential Element Iti
spres entwhenoneofthecont
rac
tingparti
esi
s
B. Natural Element compelledbyar easonabl
eandwell
-grounded
C. Accidental Element fearofani mminentandgr
aveevi
luponhi s
l
i
ber
ali
tyi
ncommodat
um i
sa/
an personorpr oper
ty
A. Essential Element A. Mistake
B. Natural Element B. Intimidation
C. Accidental Element C. Violence
Thepenalcl
ausei
nthecont
rac
tisa/
an D. Undue influence
A. Essential Element E. Fraud
B. Natural Element Afal
senot
ionofat
hingoraf
actmat
eri
alt
othe
cont
rac
t
C. Accidental Element
war
rant
yagai
nste
vict
i
oni
sa/
an A. Mistake
A. Essential Element B. Intimidation
B. Natural Element C. Violence
C. Accidental Element D. Undue influence
del
i
ver
yinr
ealcont
rac
tsi
sa/
an E. Fraud
A. Essential Element Iti
spresentwhenapersont akesi
mproper
advantageofhi
spowerov erthewil
lofanot
her
,
B. Natural Element
depri
vi
ngt hel
att
erofareasonablefr
eedom of
C. Accidental Element choi
ce
Themani
f
est
ati
onbyt
heoffer
eeofhi
sas
sentt
o
A. Mistake
t
heter
msoft
heoffer
B. Intimidation
A. Consent
C. Violence
B. Offer
D. Undue influence
C. Acceptance
Canbei
nfer
redf
rom actorc
onduc
t E. Fraud
Theage,se
xandcondi
ti
onoft
heper
sons
hal
lbe
A. Oral acceptance
consi
der
edtodet
ermi
neift
her
eis
B. Written acceptance
A. Mistake
C. Implied acceptance B. Intimidation
Anofferbec
omesi
neffec
ti
veupon
A. Infection of covid 19 by either party C. Violence
D. Undue influence
B. Paralysis of either party
E. Fraud
C. Insanity of either party
Iti
spr esentwhen,t
hroughins
idi
ouswordsor
Cont
ract
sent
eredi
ntodur
ingal
uci
dint
erv
alar
e
machi nati
onsofoneofthecontr
act
ingpart
ies,t
he
A. Valid otherisinducedtoent
erint
oacontractwhi
c h,
B. Voidable withoutthem,hewouldnothaveagreedto
C. Null and void A. Mistake
Cont
ractent
eredi
ntodur
ingahypnot
i
cspel
li
s B. Intimidation
A. Valid C. Violence
B. Voidable D. Undue influence
C. Null and void E. Fraud
Cont
ractent
eredi
ntoi
nas
tat
eofdr
unk
ennes
sis Gi
venaspr
oofoft
heper
fect
ionoft
hecont
ract
A. Valid A. Option money
B. Voidable B. Earnest money

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 C. Deposit B. Remuneratory contracts
C. Gratuitous contracts
Whatistherul
eifthepar
tyknewthedoubt
, Pr
omi
seofat
hingi
sthecaus
ein
cont
ingencyorr
iskaffec t
ingt
heobj
ectoft
he A. Onerous contracts
cont
ract? B. Remuneratory contracts
A. There is mistake C. Gratuitous contracts
B. There is no mistake Rewar
dforpr
evi
ousser
vic
eist
hec
aus
ein
C. There is fraud A. Onerous contracts
D. There is no fraud B. Remuneratory contracts
Confident
ial
,famil
y,spi
ri
tualandotherr
elat
i
ons C. Gratuitous contracts
bet
weentheparti
esaretobec onsi
deredto Ser
vic
ebyt
heot
herpar
tyi
sthec
ausei
n
det
ermi
newhetherther
eis
A. Onerous contracts
A. Mistake
B. Remuneratory contracts
B. Intimidation
C. Gratuitous contracts
C. Violence Whatisthest
atusoft
hec
ont
rac
tift
hec
ausei
s
D. Undue influence nots
tated?
E. Fraud A. Valid
Thepar
ti
esar
eboundbyt
hei
rrealagr
eement
. B. Null and void
A. Simulation of contract C. Voidable
B. Absolute simulation D. uneforceable
C. Relative simulation Themos
tdef
ect
iv
econt
ract
Cannotbeanobj
ectofcont
rac
ts Ans. Void / inexistent contract
A. Within the commerce of men Theleastdefecti
vecontract
B. Future things Rescissiblecont r
acts
C. Future rights Acontractwhichc annotber at
ified
D. Future inheritance Void/i
nexistentcont r
act
Canbeanobj
ectofcont
rac
ts Acontractwhichwhi chisdefect
iveduetolesi
on.
Res c
issi
blecontracts
A. Outside the commerce of men
Adefecti
vec ontr
actwhichc anbeannulledwit
hin
B. Future inheritance f
ouryearsfrom thetimeoft hedis
coveryofthe
C. Future rights same
D. The right to vote A. undue influence
Fi
shi
ntheopenseai
s B. mistake
A. Outside the commerce of men C. insanity
B. Within the commerce of men D. insolvency
C. Physically impossible Adefect
ivecont
ractwhi
chc
anbeannul
ledwi
thi
n
D. Legally impossible f
ouryearsfr
om t
het i
meoft
hedi
scov
eryoft
he
At
rans
miss
ibl
eri
ght same.
A. Commodatum A. Intimidation
B. Support B. Minority
C. Mutuum C. Fraud
D. Marital rights D. Civil interdiction
Thi
sisnotaf
utur
ethi
ng Av i
ceofc onsentwhi
chcanbeannull
edwithi
n
A. Chicken to be raised after 45 days f
oury ear
sf r
om theti
methedef
ectofcons
ent
B. Cassava to be harvested in the next ceases
harvest season A. Undue influence
C. Puppies of a specific dog B. Mistake
D. Honey that the bees will produce C. Insanity
Li
ber
ali
tyi
sthec
aus
ein D. Minority
A. Onerous contracts Cannotr
ati
f
ythec
ont
rac
tofani
ncapaci
tat
ed

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 The capacitated party theprobat
eproceedi
ngs.Whichst
atementi
s
As i
mi l
arit
yofr esc i
ssibleandv oidablec ontract
s corr
ect?
Ther ei smut ualr estit
uition Ifthehei
rsofDgavet hebi
gbi ket
oA,they
Payment sofobl igati
onswhi c har enoty etduei s cannol ongerrecoverthesame
Val i
d
Whofi rstenac tedtheSt atuteofFr auds ? Whati st hes tat
usofacont ractofleaseofpubl i
c
Engl ishPar liament str
eet sort horoughfaresenteredbyac i
ty
Stat
uteofFr audsi sappl ic
abl et o gover nmentwi t
hprivatemar k
etstall
holders
?
Execut orcont ract s Nul landvoi d
Kim andCocowhoar ebot hmi norsent eredi nt
oa As tipulationwhi chisc onsi
deredanex cept
ionto
contr
ac tofs al
eofani phone.Whati st hes t
atusof ther elati
v it
yofcont racti
scalled
t
hec ont r
ac t
? Stipul ationpouraut rui
Unenf orceabl e Ac ont rac tthathasc ausedapar ti
culardamaget o
Kim andCocowhoar ebot hmi norsent eredi nt
oa oneoft hepar ti
esort oathir
dper son,andwhi ch
contr
ac tofs al
eofani phone.Theguar di anofKim forequi tabler easonsmaybesetasi deev enifiti
s
rat
ifiedt hec ontract.Whati st hes t
atusoft he vali
d
contr
ac t? Rescissible
Voi dabl e As t
ipulati
onthatCocowil
lmarr
yKimin
Kim andCocowhoar ebot hmi norsent eredi nt
oa considerati
onofmoneyisnul
landvoi
dbec
aus
eit
contr
ac tofs al
eofani phone.Theguar di ansof i
sc ontraryto
Kim andCocobot hratifiedt hecont r
ac t.Whatis Mor alsandgoodcust oms
t
hes tatusoft hecont ract? Aner rorwhichwil
lvi
t
iat
econsent
Val i
d A. Error as to the solvency of other party
Thepr escripti
veper i
odf orvoidori nexis tent B. Error as to the motive of the other party
contr
ac t
C. Error as to estimates
None
Theot herpar tyisallowedt orecov erinv oid
D. Error as to basis of contract
contr
ac tsif Whati st hel iabi l
ityofat hirdper sonwhoac qui
res
i
nbadf aitht het hingsal i
enatedi nf raudof
A. The contract resulted in a crime and the
creditors
parties are in pari delicto Heshal lindemni fyt hecr editorf ort he
B. The contract did not result in a crime damagessuffer edbyt hem onaccountoft he
and the parties are In pari delicto alienationwheneveri tshoul dbei mpossi ble
C. The parties are in pari delicto and one forhi mt or et ur nt hem
party is a minor Bef oreDonSoldi es,hi shei r
sent erintoan
"D"di edl eavi
nganes t
ateamounti
ngt oP agr eementf orthepar ti
tionoft hees tateoft heir
2,000, 000.Dur ingthel
if
eti
meof"D"howev er,he fat
her .Whati st hes tatusoft hec ont r
ac t?
contrac tedal oanamount i
ngt
oP4, 000,000,outof nul landvoi d
whic h" D"paidP1, 500,
000whilehewass ti
llal
iv
e. Anagr eementwasent er edintobyt hepar t
ies
Thel egalhei rsof"D"areXandY.Howmuchwi ll whi chpr ov idest hatei theroneoft hem may
bet hel i
abili
tyofXandYf ort
heloanof" D"? terminat et hec ont rac tforthev iol ationofanyofi t
s
termsandcondi ti
ons .Ist hiss t
ipul ationv alid?
P 2,000,000
Yes,becauset heval i
di tyorcompl iancei snot
"D"diedl eavinganes tateamount ingt oP
ent ir
elyl ef ttot hewi l
lofoneoft hepar ties
2,000,000.Dur ingthelif
etimeof" D"howev er,he
Thehot el-keeperandt hegues t
sagr eet hatt he
contractedal oanamount i
ngtoP4, 000,000,outof
respons ibilityoft hef ormeraspr ovidedbyl aw
which" D"pai dP1,500,000whi lehewass ti
llali
ve.
regar di
ngneces sar ydeposi t
sbr oughtbyt he
Thel egalheirsof"D"ar eXandY.Howmuchwi l
l
gues tsissuppr es sedordi minis hed.I twasal so
bes hareofXandYi nt heinherit
anc eof" D" ?
sti
pul at
edt hatt hehot el-keeperi sf r
eef r
om
None
respons ibilityt ot heeffec tthathei snotl iablefor
"D"diedl eavinganes tateamount ingt oP
thear ti
c l
esbr oughtbyt hegues t
.Ar et he
20,000,000.I nthelastwillandtestamentof" D",
sti
pul at
ionsv alid?
hebequeat hedabi gbikemot orcyclewor t
hP
Theyar eal waysvoi df orbei ngcont raryt olaw
1,500,000t ohisfri
end," A".Thelas twilland
andpubl i
cpol icy
test
amenthowev erwasdecl arednul landv oidin

1 0
 deli
veredasar ealdepos i
t,whati
sthestat
usof
thec ont
ract
?
Nullandvoi dbecauseofwantofconsent
Whati stheremedyoft heinjur
edpartyi
ncaseof
nullandv oi
dc ontr
ac t
s?
Acti
onf ordecl ar
at i
onofnullit
yofcontract

Notar
equi
si
teoff
raudt
ovi
ti
atecons
ent
A. Employed by one of the contracting
parties only Anaudi ts taffandanaudi ti
ngfi rm orall
yent
ered
i
nt oac ontrac tofempl oymentwher ebyi tis
B. Induces the other party to enter intno
sti
pulatedt hatov ertimepr emi um andhol i
daypay
the contract arewai ved.I sthewai vervalid?
C. Must be serious No,becausei tiscont rar ytol aw and
D. Must result to injury or damage to the publ icpol icy
party asking for annulment of contract Itisar ealandoner ousorgr atuitousc ontract
Iti
sar ealandgrat
uit
ouscontr
actwherei
noneof wher einoneoft hepar ti
esdel iverstoanot her
theparti
esdeli
verst
oanother,eit
hersomethi
ng moneyorot herc ons umabl ething,upont he
notconsumables ot
hatthel
attermayusethe condi ti
ont hatt hesameamountoft hes amek i
nd
samef oracert
ainti
meandr et
urnit kindandqual i
tys hallbepai d
Contract of commodatum Cont ractofl oanormut uum
Whati sther emedyoft hepar ti
esi nc as eof Whati sther emedyoft hepar ti
esi ncas eof
relativelys i
mul atedcont rac t? abs olutelys imulatedc ont
rac t
?
Ref ormat ionofi nst rument Askf ordecl arationofnul lityofcont r
act
Whi choft hef ollowi ngs tat ement sbes tdes cribes ABCI nc .mak esanadv ert
isementf orbiddersof
aleat orycont ract ? i
tsl and.XYZi sthehi ghestbidder .IsABCbound
Acont ractwhosef ul fil l
mentdependsupon toac ceptt heofferofXYZ?
chancesuchasi nsur ancecont ract No, because advertisement for bidders are
Cangi vecons entt oac ont r
ac t simply invitation to make proposal
Blindper sonwhodonotknow how t o Asagener alrule,noonemaycont r
actint he
wr ite nameofanot herwi thoutbei ngaut hori
zedbyt he
Whi choft hef ollowi ngv ic esofc ons enti f l
atterorunl es shehasbyl awar i
ghttorepr esent
commi tt
edbyat hirdper s onwhodi dnott akepar t him.Whati st hes t
atusofac ontractenteredi nto
i
nt hec ont rac tmayannulormak et hecont ract i
nt henameofanot herbyonewhohasno
voidabl eatt hej udi cialdi sc r
etionoft hecour t? author i
tyorl egalr epresent ation,orwhohasac t
ed
Inti
mi dat ionandvi olence bey ondhi spower s?
Ifthedoubt sar ecas tupont hepr inc i
palobj ectof Unenf orceabl e
thec ontrac tins uchawayt hati tcannotbek nown Whati sther emedyoft hei njuredpar t
yinc as et he
whatmayhav ebeent hei ntent i
onorwi llofthe deter minat i
onoft heper formanc eofc ontrac tby
par ties,whats hal lbet hes t
atusoft hecont ract? thet hir
dper sondesi gnat edbyt hecontracting
Nul landvoi d partiesisev i
dent l
yinequi t
able ?
Itref erstot hei mmedi ateandpr oximat epur pos e Thei njuredpar tymayaskt hecour tto
oft hecont rac tort heess ent i
alr eas onwhi ch deci dewhati sequi t
abl eundert he
i
mpel sthecont r
act i
ngpar tiest oent eri ntoitand circumst ances
whi c hexpl ainsandj us ti
fi est hecr eat i
ngoft he Wher eacont ractiss us cepti
bl eofbeing
obligat i
ont hr oughs uc hc ont ract i
nter pretedasas alewi thar ightofrepur chas e
Causeofcont ract andasal oanwi thequi tablemor t
gage,whats hall
Aoffer shi swat cht oBf orP500.Bsai dthathewi l
l bet hei nterpretati
onoft hec ont r
act?
buyi tforP450.I st hec ont ractper fec t
ed? Cont ractofal oanwi t
hequi t
ablemor t gage
Nobecauseaqual ifiedaccept ance Whati sthes tat
usofr el
at i
velys i
mulatedc ont rac t?
const itutesacount er -offer Thei ntendedcont r actisval i
dbutt he
Ifoneoft hepar tiesbel iev edt hather ecei veda statedcont ractisvoi dr equi r
ingr ef
ormat ionof
cer tainamountasal oan,whi c htheot her instrument

1 0
Ac ontr
actent
eredintothroughlett
er,tel
egram or f
ulfi llt
heobl igationoft hepr i
ncipaldebtori
ncase
tel
ephoneispresumedt ohav ebeenent eredin t
hel att
ers houldf ailtodos o
whatplace? Cont ractofguar anty
I
ntheplacewher etheofferwasmade Whati sthes tatusofacont ractenteredinto
Aft
erDonSoldi ed,hisheirsent
eri nt
oan betweenanunemanc ipatedminorandani nsane
agreementfort
hepar ti
ti
onofthees t
ateofthei
r ordement edper son?
fat
her.Whatisthestatusofthec ontr
ac t
? Unenf or ceabl e
Val
id Aper sondi edleavi ngl i
abil
it
ies
.Ar etheheirs
l
iabl
ef ortheobl igationleftbythedecedent ?
Yes,butnotbeyondt hepr otpertythey
receivedbecauset herei sprivit
ybet ween
them andt heirpr edecessor
Whi choft hef ol l
owi ngex t
ingui shest heac tiont o
annulav oidabl econt rac t?
RATI FICATI ON
As ti
pul ationpr ovidest hatt hes tudent 'spr ivat e
sc holar shipi sgoodonl yi fhec ont i
nuesi ns ame
sc hoolandt hathewai veshi sr i
ghtt ot rans fert o
anot hersc hoolwi thoutr ef undi ngt heequi valentof
hiss cholar s hipi ncas hi snul landv oidbecaus eit
i
sc ont raryt o
MORALS
Whi choft hef ol l
owi ngv oidc ont ractmaybec ome
ex cept ional l
ybi ndi ngbyr easonofes toppel ?
thosewhi chf ailtocompl ywi thf or mal ity
requi redbyl aw f orval idi t
ybutt heydonot
affectt hirdper sons
Inac ti
onf orej ec tment ,t hel es seei nter posedt he
def enset hatt hec ont rac tofl eas eaut hor i
zedt hem
toc ont i
nueocc upy i
ngt hepr emi s ess ol ongas
theypayt hei rrent s .Ist hedef ens eoft hel es s ee
tenabl e?
No,becausei tviol atesmut ualityof
cont ract
Inc aseofconfl i
c tbet weent heevi denti nt ent i
onof
thepar ti
esandt hewor dsoft hecont rac t,whi ch
shal lpr evai l
?
Thei nt ent ionoft hepar t i
esshal lpr evai l
overt hewor dsoft hecont ract
Amor t
gageshi sl andt oBandt hemor tgagei s
regi steredi nt heRegi s t
erofDeeds .Af terwar ds ,A
sel l
st ehl andt oC.I sthemor tgagec ont ract
bindi nguponC?
YES,becauset hecont ractcr eat esar eal
rightoveri mmovabl e
whenoneoft hepar ti
esi sunabl et or ead,ori fthe
cont rac tisi nt hel anguagenotunder stoodbyhi m,
andmi st
ak eorf raudi sal l
eged,whoshal l
shoul dert hebur denofpr oofi nc aseofl awsui t
arisingf r
om t hec ont rac t?
Theper sonenf orci ngt hecont ract
Itisanacc es sor ycont r
actwhi chmus tbei n
wr it
ingi fex ecut or yt obeenf or ceabl ewher ebya
per sons ubsi diarilybi ndshi ms elft othecr edi torto

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