Multiple Choice Questions 4.

Those which can exist only as a consequence of, or in

1. It is a meeting of minds between two persons whereby relation with, another prior contract.
one binds himself, with respect to the other, to give A. Principal
something or to render some service, B. Preparatory
A. Law C. Accessory
B. Obligation D. Formal
C. Contract
D. Memorandum of agreement 5. Those which perfected by the mere agreement of the
parties.
2. Those which have for their object the establishment of a A. Formal
condition in law which is necessary as a preliminary step B. Real
towards the celebration of another subsequent contract. C. Consensual
A. Principal D. Principal
B. Preparatory
C. Accessory 6. Those which require not only the consent of the parties
D. Formal for their perfection, but also the delivery of the object
by any one party to the other.
3. D borrowed a sum of money from C with a certain rate A. Formal
of interest. C now wants to increase the interest without B. Real
the consent of D. What principle in contracts prohibits C C. Consensual
from doing so? D. Principal
A. Autonomy of contracts
B. Relativity of contracts 7. Those which give rise to reciprocal obligations for both
C. Mutuality of contracts parties.
D. Consensuality of contracts A. Informal
B. Formal
C. Unilateral
D. Bilateral 11.Those which lack individuality and are not regulated by
special provisions of law.
8. Those in which one of the parties proposes to give to the A. Nominate
other a benefit without any equivalent or compensation. B. Unilateral
A. Onerous C. Innominate
B. Formal D. Gratuitous
C. Unilateral
D. Gratuitous 12.Is a contract whereby almost all of its provisions drafted
by one party?
9. Those where each of the parties acquires an equivalent A. Nominate
of his prestation, but such equivalent, although B. Contract of adhesion
percuniarily appreciable, is not yet determined, at the C. Auto-contract
moment of the celebration of the contract, since it D. Gratuitous
depends upon the happening of an uncertain event, thus
charging the parties with the risk of loss or gain. 13.The contracting parties may establish such stipulations,
A. Unilateral clauses, terms and conditions as they may deem
B. Commulative convenient, provided they are not contrary to law,
C. Aleatory morals, good customs, public order, or public policy.
D. Gratuitous A. Autonomy of contract
B. Relativity of contract
10.Those which have their own individuality and are C. Formality of contract
regulated by special provision of law. D. Consensuality of contract
A. Nominate
B. Unilateral 14.Is a contract whereby a parties, by making reciprocal
C. Innominate concessions avoid litigation or put an end to one already
D. Gratuitous commenced.
A. Compromise agreement
B. Auto-contract B. Relativity of contract
C. Contract of adhesion C. Formality of contract
D. Memorandum of agreement D. Mutuality of contract

15.The following are the rules in innominate contract, 18.The exceptions of relativity of contracts are the
except; following , except;
A. The provisions of business law on obligations and A. Contracts are not transmissible by their nature
contracts, B. Contracts are not transmissible
B. Stipulations of the parties C. Contracts are not transmissible
C. The rules governing the most analogous nominate D. None of the above
contracts.
D. The customs of a place. 19.Which of the following may not be the object of a
contract of sale?
16.The contract must bind both contracting parties; its A. Things having potential existence
validity or compliance cannot be left to the will of one of B. The sale of vain hope or expency;
them. C. Future goods;
A. Autonomy and contract D. Answer not given
B. Relativity of contract
C. Formality of contract 20. Any third person who induces another to violate his
D. Mutuality of contract contract shall be liable for damages to the other
contracting party.
17.Contracts takes effect only between the parties , their A. Quasi interference
assigns and heirs, except in case where the rights and B. Delicit interference
obligations arising from the contract are not C. Legal interference
transmissible by their nature, or by stipulation or by D. Total interference
provision of law.
A. Autonomy of contract 21.A contract is in the stage of conception when?
A. There is meeting of the minds D. None of the above
B. Negotiations are in progress
C. The parties come to an agreement 25. Takes place when the parties agree upon the essential
D. The contract is perfect elements of the contract.
A. Preparation
22. The elements of tart interference are the following B. Consummation
except; C. Perfection
A. Existence of a valid contract D. None of the above
B. The third person is in good faith
C. Knowledge on the part of third person of the existence 26. The parties fulfill or perform the terms agreed upon in
of a contract. the contract, culminating in its extinguishment.
D. Interference of the third person is without legal A. Preparation
justification. B. Perfection
C. Consummation
23.The following are the stages in the life of a contract, D. None of the above
except;
A. Preparation 27.Those are perfected by the mere agreement of the
B. Perfection parties.
C. Consummation A. Consensual contract
D. None of the above B. Real contract
C. Formal contract
24. Begins from the time prospective contracting parties D. Unilateral contract
manifest their interest in the contract and ends at the
moment of agreement of the parties. 28. One of the parties deliver to another , either something
A. Preparation that is not consumable so that the latter may use the
B. Perfection same for the certain time and return it.
C. Consummation A. Pledge
B. Deposit C. Formal contract
C. Formal contract D. Unilateral contract
D. Commodatum
32. There is no contract unless the following requisites
29. Is constituted from the moment a person receives a concur;
thing belonging to another, with the obligation of safety A. Consent
keeping it and of returning the same. B. Object certain
A. Pledge C. Cause
B. Deposit D. Written agreement
C. Formal contract
D. Commodatum 33. The essential elements are those without where there
can be no contract.
30.The creditor is given the right to retain his debtor’s A. Inherent element
movable properly in his possession, or in that of a third B. Essential element
person to whom it has been delivered, until the debt is C. Natural element
paid. D. Accidental element
A. Pledge
B. Deposit 34. Are those which are derived from the nature of a
C. Formal contract contract and ordinarily accompany the same.
D. Commodatum A. Inherent element
B. Natural element
31.When the law requires that a contract be in some form C. Essential element
in order that it may be valid or enforceable, or that a D. Accidental element
contract be proved in a certain way, that requirement is
absolute and indispensable. 35.Are those which exist only when the parties expressly
A. Consensual contract provide for them for the purpose of limiting or
B. Real contract modifying the normal effects of the contract.
A. Inherent element 39. An imperfect promise which is merely an offer.
B. Natural element A. Consent
C. Essential element B. Policitacion
D. Accidental element C. Acceptance
D. Option
36. When the contract lacks one of the essential elements,
the contract is; 40.This refers to qualified acceptance.
A. Void A. Consent
B. Voidable B. Policitacion
C. Rescissible C. Counter offer
D. All of the above D. Option

37. Is manifested by the meeting of the offer and the 41. The following are so-called vices of consent, except;
acceptance upon the thing and the cause which are the A. Mistake
constitute the contract. B. Fraud
A. Offer C. Violence
B. Acceptance D. Legal intimidation
C. Perfection
D. Consent 42. The characteristic of consent are the following, except;
A. It should be intelligent
38. Is a unilateral proposition made by one party to B. It should be free
another for the celebration of contract. C. It should be spontaneous
A. Offer D. It should be honest.
B. Acceptance
C. Perfection 43. A “misunderstanding of the meaning or implication of
D. Consent something” or “a wrong action or statement proceeding
form a faulty judgment.
A. Mistake 47. A deception used by one party prior to or simultaneous
B. Fraud with the contract, in order to secure the consent of the
C. Violence other. Needless to say, the decent employed must be
D. Illegal intimidation serious.
A. Fraud
44. The following are the elements to consider in B. Causal fraud
determining the degree of intimidation. C. Incidental fraud
A. Age of the person D. Malice
B. Sex of the person
C. The education of the person 48.If the parties state a false cause in the contract to
D. Condition of the person conceal their real agreement.
A. Relative stimulation
45. When a person takes improper advantage of his power B. Absolute stimulation
over the will of another, depriving the latter of a C. Real contract
reasonable freedom of choice. D. Personal contract
A. Fraud
B. Intimidation 49. There is a colorable contract but it has no substance as
C. Violence the parties have no intention to be bound by it.
D. Undue influence A. Relative simulation
B. Absolute simulation
46. That which is not a serious in character and without C. Real contract
which the other party would have entered into the D. Personal contract
contract anyway.
A. Fraud 50. Which is not an exception in the rule “lesion or
B. Causal fraud inadequacy of cause shall not invalidate a contract.”
C. Incidental fraud A. In cases specified by law.
D. Malice B. Where there has been fraud
C. When there has been mistake
D. When there has been violence
Answer keys; 27.A
1. C 28.D
2. B 29.B
3. D 30.A
4. C 31.C
5. C 32.D
6. B 33.B
7. D 34.B
8. D 35.D
9. C 36.A
10.A 37.D
11.C 38.A
12.B 39.B
13.A 40.C
14.A 41.D
15.A 42.D
16.D 43.A
17.B 44.C
18.D 45.D
19.B 46.C
20.D 47.B
21.B 48.A
22.B 49.B
23.D 50.A
24.A
25.C
26.C