Contracts 2 Flashcards
Jessie Jae, Nick’s friend, asked Nick to manage her farm while she is in the US, to
which Nick accepted. Sometime thereafter, Nick learned that Jessie has two
coconut farms, one in Cebu, and the other in Leyte which she already sold to her
cousin. Nick’s interpretation is that Jessie must have meant the coconut farm in
Cebu.
a) True
b) Coconut farm in Leyte
c) Both coconut farms
d) Contract has no object
a) True
A week later, Cody went to Nick’s store and bought a cellphone. Nick thought that
the price stated in the list was P5,000, when it was actually P15,000. Cody then paid
P5,000. A little while later, Nick realized that it should have been P15,000 and called
Cody. Cody understands that the contract is rescissible since there was economic
damage of more than 25% of the value thereof, but Nick corrected Cody and said the contract is only voidable.
a) True
b) Valid
c) Unenforceable
d) Void
b) Valid
A girl about 15 years old walked inside the store and bought a ballpen for her
school supply. Nick told his store assistant that the girl can actually annul the
contract since she doesn’t have legal capacity to give an intelligent consent.
a) True
b) Contract is valid
c) Contract is voidable
d) Contract is void
b) Contract is valid
The store assistant, meanwhile added that had both parties been incapable of
giving consent, the contract would have been considered as rescissible.
a) True
b) Unenforceable
c) Voidable
d) Void
b) Unenforceable
Nick replied that the said contract will not be considered as rescissible but will be
considered as null and void.
a) True
b) Voidable
c) Unenforceable
d) Void
c) Unenforceable
The following will be for items 6-9: Miley wants to start her own recording studio.
She knows that in the process, she will have to enter into some contracts. Since she is a CPA and has a good grade in Obligations and Contracts, she is pretty confident that all contracts will be in accordance with the law. Choose true if you agree. If otherwise, choose that which would have made it true.
To increase her funds for her business, Miley sold her land to Emily for P1,000,000.
Miley bought that same land from Taylor for P1,500,000 three years ago, and prices
for that same kind of land has been increasing 1% on a year to year basis.
Nonetheless, to Miley, the sale is valid, to which Taylor agreed.
a) True
b) Unenforceable
c) Rescissible
d) Void
a) True
With the funds available to her, Miley saw a commercial space for sale near the
city’s music district. The owner is a seventeen year old girl with the name of Ashley.
Miley knew that Ashley is still seventeen, but the two girls agreed to the sale thereof.
Miley then assured Ashley that the contract is valid as such for all intents and
purposes.
a) Voidable
b) True
c) Void
d) Unenforceable
a) Voidable
After purchasing several equipments, Miley saw her funds dwindle, so she decided
to sell her mango farm to generate more cash. She approached her good friend
Demi and asks her verbally to be her agent and sell her land for her. Demi agreed
and was able to sell the land to Vanessa. The contract of sale was in writing and in a
public instrument. Miley was quite sure that the sale is valid.
a) True
b) Unenforceable
c) Voidable
d) Void
d) Void
Meanwhile, Miley realized that the commercial space that she bought from Ashley is too far from her apartment, so she wants now to annul the contract. She told Ashley that she (Miley) can annul the contract because at the time the contract was entered into, Ashley was not yet capacitated to give an intelligent consent.
a) True
b) Contract is not valid as far as Miley is concerned
c) Contract is valid as far as Miley is concerned
d) No one can annul the contract
c) Contract is valid as far as Miley is concerned
One which is not based on positive law but on equity and natural law
a) Civil obligations
b) Contracts
c) Natural obligations
d) None of the above
c) Natural obligations
An advertisement in Sunstar reads as follows: “Lot for sale, 200 square meters,
located in Cebu City, P500,000.” Such advertisement is
a. not a definite offer
b. can be considered a definite offer
c. can be a definite offer if the telephone number is also included in the
advertisement
d. not an invitation
a. not a definite offer
Which of the following is not a characteristic of consent?
a. it is intelligent
b. it is free and voluntary
c. it is conscious and spontaneous
d. it must be in the form specified as such by the law
d. it must be in the form specified as such by the law
Only one of the choices does not match any of the given. Which is it?
i. mistake of fact
ii. mistake
iii. simple mistake of account or calculation
a) vitiates consent only when such identity or qualifications have been the
principal cause of the contract
b) is the false notion of a thing or a fact material to the contract
c) may arise from ignorance or lack of knowledge
d) the defect is in the computation
a) vitiates consent only when such identity or qualifications have been the
principal cause of the contract
Percy Jackson has a collectible from Annabeth Chase. As Annabeth will not pay,
Percy threatened her that he would bring a court action against her. Because of
such threat, Annabeth paid Percy the amount of the liability. Can Annabeth avoid
such payment?
a. Annabeth can not avoid the payment because there was no vitiation of
consent
b. Annabeth can not avoid the payment if she had already delivered the money
to Percy Jackson
c. Annabeth can avoid the payment since the threat made by Percy is a vitiation
of her consent
d. Annabeth can avoid the payment since she had only been intimidated by
Percy
a. Annabeth can not avoid the payment because there was no vitiation of
consent
Only one of the choices matches only one of the given. Which is it?
i. cause
ii. absence of cause
iii. motive
a) is meant that the contract states a valid consideration but such statement is
not true
b) one the cause of which, for each contracting party, is the prestation or
promise of a thing or service by the other
c) is the essential or more proximate purpose which the contracting parties
have in view at the time of entering into the contract
d) none of the above
c) is the essential or more proximate purpose which the contracting parties
have in view at the time of entering into the contract
