1. D borrowed from C P100,000 with a penalty of 20% if not paid on time.

On due date, D was able to

pay C the borrowed amount. How much should D pay C?
a. P100,000 only
b. P100,000 + 20%
c. P100,000 + 20% + interest
d. P100,000 + 20% + interest + damages

2. In a contract, as written, Dave promises to pay Carlo P20,000 on September 15, 2007. The
consideration received by Dave is not stated in the contract:
a. The contract is valid because the cause is always presumed to exist.
b. The contract is valid so long as it is in writing.
c. The contract is valid because cause is not essential to a contract.
d. The contract is void because the cause is not stated.

3. Phil appointed Aldo as his agent orally to sell his parcel of land for P100,000. Five days after, Aldo
sold to Bert the parcel of land for P80,000 by means of public instrument executed between Aldo and
Bert. What is the effect and the status of sale between Aldo and Bert?
a. The sale is valid because it was executed in a public instrument.
b. The sale is unenforceable because the agent acted beyond the scope of his authority for selling
the land less than the price instructed.
c. The sale is void because the appointment of the agent is oral.
d. The sale can be ratified although the appointment of Aldo is oral, because the sale by Aldo to
Bert is in a public instrument.

2. A contract that allows one of the party( suffered party) to withdraw from the contract.A.

Void contract
Voidable contract

A written contract that has legal documentation and the seal( stamp) of the company.

Formal contract
In formal contract

5.

Implied contracts are neither written nor oral contracts.

A. True

B. False

To be legally enforceable, contracts must be in writing.

A. True

B. False