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W4 law q1 - test
Accountancy (National University (Philippines))
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Week 04: Contracts Part 1
Total Questions: 75
1. Autonomy is a characteristic of a contract, which states that contracts are generally effective only
between the parties, their heirs or assigns.
a. TRUE
b. FALSE
c.
d.
2. Generally, contracts are perfected by mere consent
a. TRUE
b. FALSE
c.
d.
3. An offer becomes effective even with the death of either party after acceptance came to the
knowledge of the offeror.
a. TRUE
b. FALSE
c.
d.
4. Motive as the more proximate or personal purpose which the contracting parties have in view at the
time of entering into the contract is an essential element and must always be made known to both
contracting parties.
a. TRUE
b. FALSE
MNL-22-1
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c.
d.
MNL-22-1
5. Option contract is one wherein a person in exchange for a consideration, is given a certain period of
time within which to accept or not the offer of the offerer.
a. TRUE
b. FALSE
c.
d.
6. Advertisements for bidders is a form of a contract and the advertiser is bound to accept the highest
or lowest bidder.
a. TRUE
b. FALSE
c.
d.
7. Consensual contracts are not perfected by mere consent of the parties regarding the subject matter
and the cause of the contract
a. TRUE
b. FALSE
c.
d.
8. An offer must be certain and acceptance must not be qualified before there can be meeting of minds
between the parties.
a. TRUE
b. FALSE
c.
d.
9. The validity or compliance of the contract may be left to the will of one of the contracting parties.
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a. TRUE
b. FALSE
c.
d.
10. In a contract, there is the meeting of the minds or consent, whereas in a quasi-contract, there is no
consent but the law considers the parties as having entered into a contract so that one will not be
unjustly enriched or benefited at the expense of another.
a. TRUE
b. FALSE
c.
d.
11. Conception of a contract is manifested by the offer and acceptance.
a. TRUE
b. FALSE
c.
d.
12. Lesion or inadequacy of a cause shall as a rule make a contract defective.
a. TRUE
b. FALSE
c.
d.
13. In a contract as written, RONNEL promises to pay HAZEL P7500 on July 04, 2019. The
consideration received by RONNEL is not stated in the contract.
a.
b.
c.
d.
The contract is valid because the cause is always presumed to exist.
The contract is valid so long as it is in writing.
The contract is valid because cause is not essential to a contract.
The contract is void because the cause is not stated.
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14. When the parties do not intend to be bound at all by their agreement, the contract is
a. Apparent contract
b. Assignment
c. Absolutely simulated
d. Relatively simulated
15. The following except one are characteristics of a contract:
a. liberty
b. relativity
c. consensual
d. obligatoriness
16. In order that fraud may make a contract voidable:
a.
b.
c.
d.
It may be incidental but both parties should not be in pari delicto
It may be serious and the parties must be in pari delicto
It may be incidental but should have been employed by both parties.
It should be serious and should have not have been employed by both contracting parties.
17. The process of intentionally deceiving others by producing the appearance of a contract which is
different from the true agreement
a.
b.
c.
d.
Fraud
Absolute simulation
Relative simulation
Misrepresentation
18. The inadequacy of cause, like an insufficient price for a thing sold
a.
b.
c.
d.
Lesion
Cession
Dation
Option
19. When in order to wrest consent, serious or irresistible force is employed there is:
a. Violence
b. Mistake
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c. Intimidation
d. Fraud
20. A contract to make a deposit, to make a pledge or to make a commodatum is a:
a. Consensual contract
b. Solemn contract
c. Real contract
d. Formal contract
21. Not a requisite of stipulation pour autrui
a. The contracting parties must have clearly and deliberately conferred a favor upon third person
b. The stipulation must be part of the contract
c. The third person communicated his acceptance to the obligor before it revocation
d. There must be an agency between either of the parties and the third person
22. The contract must bind both contracting parties.
a.
b.
c.
d.
Consensuality of contract
Mutuality of contract
Obligatoriness of contract
Relativity of contract
23. When there is concurrence of offer and acceptance, there is:
a.
b.
c.
d.
cause
consent
subject matter
prestation
24. Not an essential requisite of a contract:
a.
b.
c.
d.
Meeting of the minds
prestation
consideration
formalities
25. This is the accord or coincidence of the desires and intent of the parties to the contract upon the
subject matter and the cause.
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a. Reformation
b. Payment
c. Consent
d. Ratification
26. Which of the following is not a limitation upon the right to contract?
a. Those contrary to third person.
b. Those contrary to law.
c. Those contrary to morals.
d. Those contrary to public order.
27. The first step in the different stages of a contract is:
a. Perfection
b. Preparation
c. Performance
d. Consummation
28. Like incapacity, force or violence, the following cause vitiate consent or render it defective so as to
make the contract voidable except:
a.
b.
c.
d.
Threat
Fraud
Reverential fear
Undue influence
29. The stage of ÒdeathÓ of a contract, is;
a.
b.
c.
d.
when the parties come to an agreement
when there is a meeting of the partiesÕ minds.
when the contract is fully executed
when negotiations are in progress.
30. Not a requisite for a valid consent:
a. consent must be free
b. consent must be intelligent
c. parties are physically present
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d. person must be capacitated
31. These persons are bound by contracts:
a. contracting parties
b. heirs
c. assigns or assignees
d. all of them
32. Contract that is made for a valuable consideration is:
a. real
b. onerous
c. gratuitous
d. consensual
33. The purely personal purpose which the contracting parties have in view at the time of entering into
the contract is:
a.
b.
c.
d.
object
motive
cause
consideration
34. One which is perfected by the delivery of the thing which is the subject matter of the contract:
a.
b.
c.
d.
Contract
Real contract
Rescissible contract
None of the above
35. A contract where the fulfillment is dependent upon the chance, so the values may vary because of
the risk or chance.
a.
b.
c.
d.
Commulative
Remunerative
Aleatory
Gratuitous
36. A contract where one party receives no valuable consideration and the cause is the liberality of the
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benefactor is
a. A gratuitous contract
b. An onerous contract
c. A unilateral contract
d. A commutative contract
37. Not a requisite for the validity of a contract
a. Consent
b. Object
c. Cause
d. Delivery
38. LAWRENCE owes MARIE P705,000. LAWRENCE knows that on maturity date, he will not be
able to pay MARIE, and in order to prevent attachment of his property by MARIE, LAWRENCE,
before maturity of his debt, executed a contract pretending to sell to GELLIE her property. Which of
the following statements is not correct?
a.
b.
c.
d.
The contract is not valid for lack of consideration.
The contract is binding between LAWRENCE and GELLIE.
The contract being simulated and executed to defraud Daniel is void.
Daniel can seek rescission of the fictitious contract.
39. The conception of a contract is when
a.
b.
c.
d.
There is meeting of the minds
When negotiations are in progress
When the contract is executed
When the parties come to an agreement
40. The principle that contracting parties may establish such stipulations, clauses, terms and conditions
as they may deem convenient, provided they are not contrary to law, moral, public policy and public
order, refer to the principle of
a.
b.
c.
d.
Liberty of contract
Consensuality of contract
Relatively of contract
Mutuality of contract
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41. Contracts are generally effective only between the parties, their assigns and their heirs
a. Consensuality of contract
b. Mutuality of contact
c. Simplicity of contract
d. Relativily of contract
42. I. Failure to disclose facts, when there is a duty to reveal them constitutes fraud.
II. The usual exaggerations in trade, when the other party has an opportunity to know the facts, are
not in themselves fraudulent
a. True, true
b. True, False
c. False, true
d. False, false
43. A contract with a cause distinct from the selling price is
a.
b.
c.
d.
Lesion
Cession
Dation
Option
44. The inadequacy of cause, like an insufficient price for a thing sold
a.
b.
c.
d.
Lesion
Cession
Dation
Option
45. The process of intentionally deceiving others by producing the appearance of a contract that really
does not exist
a.
b.
c.
d.
Fraud
Absolute simulation
Relative simulation
Misrepresentation
46. The process of intentionally deceiving others by producing the appearance of a contract which is
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different from the true agreement
a. Absolute simulation
b. Relative simulation
c. Fraud
d. Misrepresentation
47. ANGELO delivered his car to MELODY for the latterÕs use for one week without any
compensation. The cause of the contract is
a. The car of ANGELO
b. The period of one week
c. The generosity of ANGELO
d. The delivery of the car
48. ELAINE delivered her bracelet to ASHLEY for ASHLEYÕS necklace. No written agreement was
signed by the parties. Which of the following is appropriate description of the contract between
ELAINE and ASHLEY?
a.
b.
c.
d.
Onerous and bilateral
Bilateral and innominated
Onerous and innominated
Aleatory and nominate
49. The following instances will render an offer ineffective before acceptance is conveyed. Which one
will not? When one of the parties
a.
b.
c.
d.
Is civilly interdicted
Becomes insolvent
Become insane
Is placed under a hypnotic spell
50. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the
parties to a contract, the proper remedy to avoid liability is:
a.
b.
c.
d.
Ratify the contract
Ask for rescission
Annulment of the contract
Reformation of the contract
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51. A stipulation in favor of a third person
a. Stipulation pour autrui
b. Assignment of credit
c. Stipulation pour over
d. Pactum commissorium
52. Which of the following constitutes a definite offer
a. An offer made through an agent
b. Advertisement for bidders
c. Business advertisement of things for sale
d. Newspapers advertisements for employment
53. In order that fraud may make a contract voidable:
a.
b.
c.
d.
It may be incidental but both parties should not be in parti delicto
It may be serious and the parties must be in pari delicto
It may be incidental but should have been employed by both parties.
It should be serious and should have not have been employed by both contracting parties.
54. These statements are presented to you:
I. The number of parties to a contract may be more than two.
II. The number of persons composing a party to a contract may be one or more. In your evaluation
of the foregoing statements:
a.
b.
c.
d.
Both statements are true.
Both statements are false.
Statement I is true; Statement II is false.
Statement I is false; Statement II is true.
55. The essential elements of a consensual contract are the following, except:
a.
b.
c.
d.
Consent of the contract parties.
Object certain which are the subject matter of the contract.
Cause of the obligation which must be established.
Warranty of the parties that they will perform their respective obligations.
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56. The essential elements of a real contract are the three essential elements mentioned in the
preceding number and the:
a. Execution of a public instrument.
b. Execution of a private instrument.
c. Delivery of the object of the contract.
d. Formalities required by law.
57. Which of the following is a principal contract?
a. Simple loan of money
b. Real estate mortgage
c. Guaranty
d. Pledge
58. ERWIN borrowed P20,000.00 from MLHUILLIER Pawnshop. To secure the debt, ERWIN
pledged his diamond ring. The pledge of the ring is:
a.
b.
c.
d.
A principal contract.
A preparatory contract.
An accessory contract.
Not a contract at all.
59. These contracts are presented to you:
I. Contract of partnership.
II. Contract of agency.
Which of the foregoing contracts is a preparatory contract?
a.
b.
c.
d.
Contract I.
Contracts I and II.
Contract II.
Neither of the two.
60. A contract where the parties give equal or almost equal values is known as:
a. Commutative contract.
b. Aleatory contract.
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c. Compensatory contract.
d. Equivalent contract.
61. Which of the following is not a bilateral contract?
a. Sale
b. Barter
c. Commodatum
d. Lease of real property
62. DENCY loaned money for the operations of POWER Enterprises, a company owned by
GABRIEL, which DENCY manages as GABRIELÕS agent. The contract of loan that DENCY entered
into in his own name as lender and representing GABRIEL as borrower is an example of:
a. Automatic contract.
b. Autonomous contract.
c. Auto-contract.
d. Contract of adhesion.
63. These statements are presented to you:
I. Acceptance by letter or telegram binds the offerer from the time the letter of acceptance is
mailed or sent by the offeree.
II. If the acceptance is by letter or telegram, the contract is presumed to have been entered into in
the place where the offer was made.
In your evaluation of the foregoing statements:
a.
b.
c.
d.
Both statements are true.
Only statement I is true.
Both statements are false.
Only statement II is true.
64. The following contracts are not perfected until the delivery of the object of the obligations, except
a.
b.
c.
d.
Pledge
Deposit
Sale
Commodatum
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65. Pledge, deposit and commodatum are
a. Consensual contracts
b. Solemn contracts
c. Real contracts
d. Formal contracts
66. A contract to make a deposit, to make a pledge or to make a commodatum is
a. Consensual contracts
b. Solemn contracts
c. Real contracts
d. Formal contracts
67. Acceptance of an offer made by letter or telegram shall bind the offeror from the time the
a.
b.
c.
d.
Offeree accept the offer
Offeree sent his letter or telegram.
Acceptance came to the knowledge of the offeror
Offeror made the offer
68. When in order to wrest consent, serious or irresistible force is employed, there is
a.
b.
c.
d.
Violence
Mistake
Intimidation
Undue influence
69. When one of the contracting parties is compelled by a reasonable and well-grounded fear of an
imminent and gave evil upon his person or property, or upon the person or property of his spouse,
descendents or ascendants to give his consent, there is
a.
b.
c.
d.
Violence
Intimidation
Mistake
Undue influence
70. When through insidious words or machinations of one of the contracting parties, the other is
induces to enter into a contract which, without them he would not have agreed, there is
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a. Fraud
b. Intimidation
c. Mistake
d. Undue influence
71. On February 3, 2020 JULIA offered to lease the agricultural lot of DANIELLA for P9,000.00 per
month. On February 6, 2020 DANIELLA sent his letter of acceptance which was received by JULIA
on February 10, 2020. However, DANIELLA had become insane on February 8, 2020. The lease
contract was perfected on:
a. February 3, when JULIA offered to lease the agricultural lot from DANIELLA.
b. February 6, when DANIELLA sent his letter of acceptance.
c. On February 10, when JULIA received the letter of acceptance.
d. No contract was perfected.
72. Aside from violence, the following are the vices of consent, except:
a.
b.
c.
d.
Violence
Intimidation
Undue influence
Persuasion
73. MIKE sold 95 pieces of volleyball ball to REA at P95.65 each. The invoice, however, showed a
total price of P9,9086.75 instead of P9,086.75. the contract of sale in such a case is:
a.
b.
c.
d.
Valid because the mistake can be corrected.
Rescissible because of the damage of P900.00 suffered by MIKE.
Voidable on the ground of the mistake in computation.
Void because there was no meeting of minds.
74. The following statements pertain to the cause of a contract. Which statement refers to motive?
a.
b.
c.
d.
It is the essential reason of a contract
It is the essential reason of a contract
Its illegality does not affect the validity of the contract
There will be no contract without it
75. Finn offered to sell his watch to Jake for P2,000. Jake offered to buy the watch for P1, 800 but was
rejected by Finn. When Jake turned to go away. Finn called him and said he is now willing to sell the
watch for P1,800. May Jake refuse to buy said watch?
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a. No, because JakeÕs offer of P1,800 was accepted by Finn.
No, there is a meeting of the minds between the parties or the subject matter and the cause of
b. the contract.
c. Yes, because Jake made a counter offer which was rejected by Finn.
d. Yes, because the agreement is under the statute of frauds
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