Business Law
BL. 1801-Drill 1- Contract
1 .On May 1, 2015, S offered to sell a specific car to B for
Ᵽ500,000.00. B sent his letter of acceptance to S on May 8,
2012. On May 10, 2015, however, S died in a vehicular
accident and his secretary received the letter of acceptance
on May 12, 2015 unaware that S had already died.
a. The contract was perfected on May 8, 2015
when B sent his letter of acceptance.
b. The contract was perfected on May 12, 2015
when the secretary of S received the letter
of acceptance.
c. The contract was not perfected because the
offer of S became ineffective when he died.
d. The contract was perfected on May 1, 2015
because the acceptance made by B on May
8, 2015 retroacts to the date of the offer.
2. Under this theory the contract is perfected at the
moment when the acceptance is declared or made by the
offeree.
a. Theory of concession
b. Theory of cognition
c. Gennosenshaft theory
d. Theory of manifestation
e.
3. Dante borrowed Ᵽ15,000,000.00 from Carlos.
Dante died without having paid his loan
obligation to Carlos. He left Santos and Marlon his
heir properties worth Ᵽ12,000,000.00
a. Santos and Marlon is liable to Carlos for Ᵽ
7,500,000.00 each.
b. The estate of Dante is liable to Carlos for
Ᵽ1,500,000.00 each.
c. Santos and Marlon must deliver the
properties worth Ᵽ12,000,000 to Dante and
to pay the balance of Ᵽ3,000,000 with their
separate property in solidum.
d. Santos and Marlon must deliver the
properties worth Ᵽ12,000,000 to Carlos.
4. S offered to sell B his house and lot for
Ᵽ10,000,000. In order to pressure B in buying said
house and lot, T, a very good friend of S,
threatened B with death as a result of which B
accepted the offer of S. It turns out now that the
market value of the house and lot is Ᵽ15,000,000.
Is the contract of S and B valid?
a. The contract is valid since it is very clear that
S did not apply the intimidation.
b. The contract is voidable because the consent
given by B is anyway vitiated even if the
intimidation was employed by a third
person.
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c. The issue of the contract being voidable is
not relevant because B will not have the
contract avoidable because it is actually
favorable to him.
d. It is not B but S or T who can file the action
for annulment.
5. To defraud his creditors, A contracted B by selling
a land to B. B now seeks to register the land with
the Register of Deeds. X a creditor of A seeks to
prevent the registration on the ground that the
contract is rescindable. Despite X’s objection may
the land be registered based on the contract in B’s
name.
a. The land cannot be registered based on the
contract which is rescindable.
b. The land cannot be registered because the
contract is in fraud of creditor.
c. The land can be registered based on the contract
is not yet rescinded.
d. The land can be registered because the contract
is valid and can be attacked collaterally in a land
registration proceeding.
6. X and Y were to marry in 3 months, meantime, to
express his affection, X donated a house and lot
to Y, which donation X wrote in a letter to Y. Y
wrote back, accepting the donation and took
possession of the property. Before the wedding,
however, Y suddenly died of heart attack. Can Y’s
heirs get the property?(2011 Bar)
a. No, since the marriage did not take place.
b. Yes, since all the requisites of a donation of
an immovable are present.
c. No, since the donation and its acceptance
are not in a public instrument.
d. Yes, since X freely donated the property to Y
who became its owner.
7. This element exist only when they are expressly
provide by the parties:
a. Natural elements
b. Accidental elements
c. Essential elements
d. Original elements
8. A solemn or formal contract has the following
essential elements:
a. Consent of the contracting parties, object
certain and cause or consideration.
b. Consent of the contracting parties, object
certain cause or consideration and delivery
of the object.
c. Consent of the contracting parties, object
certain, cause or consideration and
formalities required by law.
Business Law
BL. 1801-Drill 1- Contract
d. Consent of the contracting parties, object
certain, delivery of the object, and
formalities required by law.
9. Contracts take effect only between the parties or
their assigns and heirs, except where the rights
and obligations arising from the contract are not
transmissible by their nature, by stipulation, or by
provision of law. In the latter case, the assigns or
the heirs are not bound by the contracts, this is
known as the principle of (2011 Bar)
a. Relativity of contracts
b. Mutuality of contracts
c. Freedom to stipulate
d. Obligatory force of contracts
10. The estate of Krispy Kreme who died recently,
shows, among other documents/contracts, the
following:
I. A certificate from Harvard University
granting a scholarship to Krispy. He was
subjected to exhausted examinations and
interviews before he was granted
scholarship. He was supposed to start
studying at Harvard in 3 months’ time.
II. Articles of partnership of Donut enterprise
showing Krispy as a general partner.
III. A stock certificate of Dunkin Corporation
showing Krispy as the owner of Ᵽ5,000
shares of stock.
IV. A promissory note amounting to Ᵽ100,000
executed by maker in favor of Krispy. The
note is due after 90 days. Which of the rights
of Krispy arising from the said
documents/contracts will be transmitted to
the heirs?
a. I and II C. III and IV
b. II and III D. I and IV
11. This is a real contract:
a. Deposit c. Antichresis
b. Pledge d. All of them
12. Which of these constitutes fraud?
a. The usual exaggeration in trade if the other
party had an opportunity to know the facts.
b. An expression of opinion which did not turn
out to be true if made by an expert and the
other party relied on it.
c. Failure to disclose facts when there is no
duty to reveal them.
d. A misrepresentation made in good faith.
e. Both b and c.
13. S offered to sell his house and lot to B for
Ᵽ5,000,000 giving to him an option of 60 days
within which to decide whether or not to buy.
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After only 15 days, S met T who offered to buy the
same house and lot for Ᵽ8,000,000. S then
notified B of the withdrawal of the option and
proceeded to sell T. B files an action for damages
against S.
a. B cannot recover damages from C because
his option is without consideration as
something paid or promised.
b. B can recover damages from S because the
latter violated the option given to the
former.
c. B can recover damages from S if B gave S
option money which will result in a perfected
contract of sale.
d. Correct answer not indicated
14. A contract of commodatum has the following
essential elements:
a. Consent of the contracting parties, object
certain and cause or consideration.
b. Consent of the contracting parties, object
certain, cause or consideration and delivery
of the object.
c. Consent of the contracting parties, object
certain, cause or consideration and
formalities required by law.
d. Consent of the contracting parties, object
certain, delivery of the object, and
formalities required by law.
15. Under the following contracts the rights and
obligation are not transmissible except:
a. Contract of lease
b. Contract of agency
c. Contract of partnership
d. Contract of commodatum
16. In a contract, as written, Dave promises to pay
Carlo Ᵽ20,000 on September 15, 2015. 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.
17. Which of the following is consensual contract:
a. Contract of partnership with a capital
contribution of real property amounting to
Ᵽ100,000.
b. Donation of personal computer worth
Ᵽ5,000.
c. Stipulation of interest in a contract of loan.
d. Contract of agency.
Business Law
BL. 1801-Drill 1- Contract
18. Contracts are effective and binding only between
the parties, their assigns and their heirs. Three of
the following enumerations are exceptions as
provided by law. Which does not belong to the
exception?
a. Where there is a stipulation in favor of a
third party
b. Where one of the parties to the contract dies
and thereafter a suit is filed on the basis of
the contract.
c. Where the obligations arising from the
contract are not transmissible by their
nature.
d. Where the obligations arising from contract
are not transmissible by stipulation or by
provision of law.
19. A wrote a letter to B wherein A to sell a piece of
land to B for Ᵽ200,000. B signified his desire to
buy the land. In A’s letter, B was given a period of
two (2) months within which to produce the
Ᵽ200,000. After 45 days, A told B that price of the
land is now Ᵽ250,000. Can B compel A to accept
the Ᵽ200,000 first offered by A and execute the
deed of sale?
a. Yes, because there was actual meeting of the
minds of the parties.
b. No, for B did not signify his acceptance of A’s
offer.
c. Yes, because A is already estopped by his
signed letter.
d. Yes, because the period of two (2) months
has not expired.
20. Which is the correct order of application of the
rules in connection with solution of problems
involving innominate contracts?
a. The provisions of the Civil Code; then
stipulation of the parties, then the provisions
of the most analogous nominate contract
and lastly custom or usage of the place.
b. Custom or usage of the place; then
stipulation of the parties; then the
provisions of Civil Code and lastly provision
of the most analogous nominate contract.
c. The stipulation of the parties, then the
provisions of the Civil Code; then the
provisions of the most analogous nominate
contract and lastly the custom or usage of
the place.
d. The provisions of the most analogous
nominate contract; then the stipulation of
the parties; then the provisions of the Civil
Code and lastly the custom or usage of the
place.
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21. Carlito offered by letter on January 1, 2015 to sell
his only Canon printer to Malou for Ᵽ10,000.
Malou received the letter of offer on January 10,
2015 and sent a letter of accepted on the same
date. The letter of acceptance was received by
Carlito on January 20, 2015. However, on January
12, 2015, Malou had already written a letter
revoking the acceptance. The letter of revocation
was received by Carlito on January 19, 2015.
a. There is meeting of the mind upon the thing
which is the subject matter of the contract of
sale and as to the cause which is the price.
b. There is no meeting of the mind because the
acceptance was already revoked by Malou
and it was received by Carlito ahead of the
letter of acceptance.
c. There is already meeting of the mind since
there is already acceptance made by Malou
hence, the subsequent revocation is
immaterial.
d. There is no meeting of the mind because
there is revocation and therefore it
constitute non willingness to be bind in a
contract.
22. On July 1, 2015, Serrano offered to sell his only
Mercedes Benz car for Ᵽ1,000,000.00 to Benetiz
who was interested in buying the same. In his
letter to Benetiz, Serrano stated that he was
giving Benetiz up to July 31, 2015 to make up his
mind whether to buy the car or not. On July 25,
2015, Serrano personally went to Benetiz to
inform him that he was no longer willing to sell
the car unless the price was increased to
Ᵽ1,400,000.00 because another buyer was
interested in buying the car for the said amount
of Ᵽ1,400,000.00 .
23. In written contract the true intention of the
parties was not reflected therein through the
fraud committed by one of them, which fraud
prevented a meeting of the minds. The applicable
remedy would be-
a. Reformation of the contract
b. Resolution of the obligation
c. Annulment of the contract
d. A petition for the declaration of nullity of
the contract.