REVIEW

Question 1

The defense of illegality of contract is not available to third persons whose interests are not directly affected. (T/F)

Answer 1

TRUE

Question 2

A contract which is the direct result of a previous illegal contract is also void and inexistent. (T/F)

Answer 2

TRUE

Question 3

A party who employed violence, undue influence, or fraud, or who caused mistake may bring an action to annul the contract on any such ground. (T/F)

Answer 3

FALSE

Question 4

Reformation is a remedy availed of to express the real intent of the parties to a contract whether oral or written. (T/F)

Answer 4

TRUE

Question 5

Rescission cannot be availed of in the case of a last will and testament. (T/F)

Answer 5

FALSE

Question 6

A void contract can be ratified. (T/F)

Answer 6

FALSE

Question 7

Reformation is available if the contract is void. (T/F)

Answer 7

FALSE

Question 8

Ratification cleanses the contract from all its defects from the moment the ratification was made. (T/F)

Answer 8

FALSE

Question 9

Contracts entered into during a lucid interval are valid. (T/F)

Answer 9

TRUE

Question 10

The ‘Cause’ is the essential reason for a party in entering into a contract. (T/F)

Answer 10

TRUE

Question 11

It is the meeting of the minds between two persons whereby one binds himself with respect to the other, to give something or to render some service.

Answer 11

CONTRACT

Question 12

It refers to a contract which has no specific name of designation in law.

Answer 12

INNOMINATE

Question 13

It is a contract that is perfected by mere consent.

Answer 13

CONSENSUAL

Question 14

The following are essential requisites of a contract, except:

Answer 14

DESIGNATION

Question 15

It is a stage in the contract that refers to the time wherein the parties have come to a definite agreement
regarding the subject matter and the cause of the contract.

Answer 15

PERFECTION

Question 16

It is a definitive contract which is valid but is defective because it brings about the economic injury or damage to one of the third parties or third persons.

Answer 16

RESCISSIBLE

Question 17

It is a defective contract that is subject to annulment not due to damage, but due to vitiated consent.

Answer 17

VOIDABLE

Question 18

It is a contract that is considered invalid from the beginning.

Answer 18

VOID

Question 19

It is a contract that is considered valid but which the court will not enforce.

Answer 19

UNENFORCABLE

Question 20

It refers to the act of accepting or consenting to the agreement despite knowledge of its defects.

Answer 20

RATIFICATION

Question 21

The stages of a contract according to the order of their occurrence are

Answer 21

CONCEPTION, BIRTH AND CONSUMPTION

Question 22

The warranty against hidden defects in a contract of sale is an example of:

Answer 22

NATURAL ELEMENT

Question 23

Contracts take effect only between the contracting parties, their assigns and heirs, except in cases where the
obligations and rights arising from the contract are not transmissible by their nature, or by stipulation or
provision of law. This principle of contract is known as:

Answer 23

RELATIVITY OF CONTRACT

Question 24

The principle that contracts are perfected by mere consent is known as:

Answer 24

CONSENSUALITY OF CONTRACTS

Question 25

The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them. This is known as the principle of:

Answer 25

MUTUALITY OF CONTRACTS