Defective contracts

1. The least defective contract:

Rescissible contract
2. S and B entered into a contract of sale of a piece of land embodied in a public document
on March 14, 2002. On July 20,2002, the said public document was registered with the
Register of Deeds. On December 15, 2002, B discovered that he was defrauded by S.
The prescriptive period for the filing of the action for annulment shall be counted;
Within four (4) years from July 20, 2002 or the date of registration with the Office of the
Registration of Deeds;
3. A voidable contract:
All of the above
4. M, minor, owns a house and lot valued at P1,000,000 and G is his guardian, M sold said
house and lot to B, a capacitated person, for P600,000 in a private writing. The contract
between M and B is:
Voidable
5. In which of these cases will the Statute of Fraud not apply?
All of the above
6. S defrauded B in making the latter believe that the ring he is selling is gold and diamond
when, in fact, it is copper and glass. On the other hand, B defrauded S in paying him
P200,000 in fake Philippine currency. Which of these statements is correct?
Neither S nor B can go to court since they are both guilty of fraud.
7. The following agreements are covered by the Statute of Fraud. Choose the exception.
An oral contract of partnership where the contribution in money or personal property
amounts to P3,000 or more
8. Which of the following contracts cannot be ratified? (Phil CPA, 87-1)
Those whose cause or object did not exist at the time of the transaction.
9. Which of the following contracts cannot be ratified? (Phil CPA, 87-1)
Those whose cause or object did not exist at the time of the transaction.
10. A voidable contract:
All of the above
11. Statement 1: A contract whose cause or object did not exist at the time of the transaction
is a defective contract which cannot be remedied by providing a cause or object as the
case may be in the contract.
Statement 2: The nullity of the accessory obligation or of the penal clause does carries
with it the nullity of the principal obligation which remains in force and demandable.
Determine whether: (Phil CPA, 94-1)
Statement I is true but statement II is false.
12. Choose the contracts which are voidable. (Phil CPA, 92-1)
Those where the consent is vitiated by mistake, violence, intimidation, undue influence
or fraud.
13. Contracts entered into a state of drunkenness or during a hypnotic spell are: (Phil CPA,
93-1; 97-1)
Voidable
14. In order that fraud may make a contract voidable: (Phil CPA, 87-1)
 It should be serious and should not have been employed by both contracting parties.
15. Contracts which cannot be sued upon unless ratified, thus it is as if they have no effect
yet, are: (Phil CPA, 97-2)

unenforceable
16. The action to annul a voidable contract, such as a contract where one of the parties is
incapable of giving consent to the contract is extinguished by: (Phil CPA, 91-1)
Ratification
17. Andy is the representative of Babes, an absentee sells a house and lot valued at
P100,000 for only P60,000. The contract is: (Phil CPA, 97-1)
Rescissble
18. Andy is the representative of Babes, an absentee sells a house and lot valued at
P100,000 for only P60,000. The contract is: (Phil CPA, 97-1)
Rescissble
19. When one of the parties to a contract is compelled to give his consent by a reasonable
and well grounded fear of an imminent and grave evil upon his person or property, or
upon the person or property of his spouse, descendants or ascendants, there is: (Phil
CPA, 91-1)
Intimidation
20. Three (3) of the following contracts are void. Which is not? (Phil CPA, 92-2)
Oral partnership agreement when capital is more than P3,000.00
21. A guardian of B sold B's house and lot worth P480,000 for P240,000. (Phil CPA, 87-2)
The contract can be rescinded because of inadequacy of price.
22. Factor vitiating consent
Dolo causante
23. Contracts entered into during lucid interval are: (Phil CPA, 89-2)
Answer not given
24. The stipulation in a contract to the effect that the debtor should remain as a servant in
the house and in the service of her creditors so long as she had not paid her debt, is
void because it is: (Phil CPA, 91-1)
Contrary to law and morality
25. S offered to sell to B his house and lot for P10,000,000. In order to pressure B into
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 P15,000,000. Is the contract of S and B valid?
The contract is voidable because the consent given by B is anyway vitiated even if the
intimidation was employed by a third person.
26. 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. (Phil CPA, 87-2)

The land can be registered based on the contract because the contract is not yet
rescinded.
27. On September 1, 1987, A entered into a contract with B, whereby A sells to B 5,000
sacks of sugar to be delivered on the 15th and to be paid in full on the 30th. There was
no agreement for rescission based on non-payment. A did not deliver on the 15th but on
the 30th he was willing and offering to deliver. But B did not make payment on said date
and so A did not like and refused to make the delivery. Decide. (Phil CPA, 87-2)
A can rescind the contract for nonpayment of the price.
28. Which of the following contracts is not void ab initio?
The contract which is relatively simulated or fictitious.
29. A deaf-mute who knows how to write enters into a contract with an insolvent person after
his discharge, the contract is:
Valid
30. An oral sale of land for P500,000.
Unenforceable
31. One of the parties to a contract is unemancipated:
Voidable
32. An oral contract of guaranty:
Unenforceable
33. Mr. Esguerra, a former government employee, suffered from severe paranola and was
confined in the mental hospital in 1981. After his release he was placed under the
guardianship of his wife to enable him to get retirement pay. In 1984 he became a mining
prospector and sold some mining claims. In 1987 he sued to annul the sale claiming that
he was not mentally capacitated at the time of sale. The sale in question was: (Phil CPA,
93-1; 97-1)
Valid
34. Reluctantly and against her good sense and judgment, Rosemarie entered for the
delivery of 5 tables to Corazon for a price of P15,000. Contract is: (Phil CPA, 93-1; 97-1)
Valid
35. F disappeared without his whereabouts having been known sometime in 1994.
Whereupon in 1996, W, his wife, sold his house and lot worth P10,000,000 for only
P7,000,000 in favor of T in order to support the family. In 1998, F resurfaced and began
staying with his family. In 2003, F decided to file an action to rescind the contract with T.
In this case:
Even if F can return the P7,000,000 and the house and lot has not been sold to a buyer
in good faith, rescission will not lie because more than 4 years had lapsed from the
reappearance and, therefore, his right to rescind has already prescribed.
36. The proper remedy is annulment of contract and not reformation when: (Phil CPA, 91-1)
Mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of
the parties.
37. Three (3) of the following contracts are void. Which one is not? (Phil CPA, 89-2)
Oral contract of Partnership of three (3) partners and capital contribution is more than
P3,000 in cash.
38. This results in the ratification of a contract violative of the Statute of Fraud:
Both (a) and (b)
39. A intimidated B to marry A's daughter. After a year, B would like to file action for
annulment but could not do so because A was around to intimidate him. The marriage
contract is: (Phil CPA, 93-2)
Void
40. Which of the following contracts is not void ab initio? (Phil CPA, 97-2)
That which is undertaken is fraud of creditors.
41. M is minor who owns a house and lot valued at P1,000,000. G is the guardian who sold
the house and lot to B for only P600,000 but with the approval of the court. The contract
between G and B is ?
Valid;
42. Which of the following contracts is valid? (Phil CPA, 97-2)
Oral contract of agency giving authority to an agent to sell the land belonging to the
principal.
43. S sometime in 1996 sold to B a house and lot where the former committed fraud. The
deed of sale which was in a public document was registered with the Register of Deeds
in 1997. In 1999, the fraud was discovered by the heirs of B. Under the Law, the action
to annul a contract based on fraud must be filed within four (4) years from:
1997 the date of registration with the Register of Deeds.
44. When the object of the contract is outside the commerce of man, the contract is: (Phil
CPA, 86- 2)
Void
45. The process of intentionally deceiving others by producing the appearance of a contract
which is different from the true agreement is: (Phil CPA, 96-2)
Relative simulation of a contract
46. In a 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
Annulment of the contract
47. A and B who are both unemancipated minors entered into a contract. The contract
entered into by and between them is: (Phil CPA, 87-1)
Unenforceable
48. On July 15, 1986, X entered into a contract with Y. On February 10, 1987, X discovered
that fraud was committed at the time he entered into the contract a fraud that vitiated his
consent. The action for annulment shall be brought. (Phil CPA, 87-2)
Within four years from February 10, 1987
49. A and B who are both unemancipated minors entered into a contract. The contract
entered into by and between them is: (Phil CPA, 87-1)
Unenforceable
50. On July 15, 1986, X entered into a contract with Y. On February 10, 1987, X discovered
that fraud was committed at the time he entered into the contract a fraud that vitiated his
consent. The action for annulment shall be brought. (Phil CPA, 87-2)
Within four years from February 10, 1987
51. The guardian of an insane person sells a house and lot belonging to the latter valued at
P100,000 to B, buyer for P74,000 with the approval of the court. The contract is: (Phil
CPA, 97-1)
Valid
52.