Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Contract Law Exercises and Questions, Exercises of Business Accounting

Law on Obligation and Contract Reviewer

Typology: Exercises

2019/2020

Available from 11/07/2022

tatajiiinpark_
tatajiiinpark_ 🇺🇸

8 documents

1 / 4

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
1. S sold his only car for P100,000.00 to B. Unknown to S, B bought the car
from him so that he could use the same in a bank robbery. What is the
status of the sale of the car by S to B? the sale is valid because the illegality of
the motive of the parties to the contract does not have any effect on its validity
2. Fraud exists in three of the following. Which is the exception? when the
misrepresentation refers to the usual exaggerations in trade, and the other party
had an opportunity to know the facts
3. “A” bachelor lawyer, raped W twice. Upon learning this, “F” the father of
W, was able to force A to marry W under pain of being sued in court and
disbarred from the practice of his law profession. Which statement is
correct? there was no defect, the marriage was perfectly valid
4. Mr. S offered to sell his land to Mr. C for P100,000. Mr. C accepted the
offer and paid Mr. S P100,000 and Mr. S delivered the owner’s duplicate
of the Transfer Certificate of Title of the land. Mr. C wishes to register the
land in his name but the Register of Deeds asked Mr. C for the Deed of
Sale. What can Mr. C do? (Phil CPA 88-2) Mr. C may compel Mr. S to
execute the Deed of Sale because the contract is valid.
5. Three of the following may be valid objects of a contract, except mpossible
things or services
6. D asked C if the latter can grant him his washing machine with a fair
value of P50,000.00 for a term of one year and return the same. C
nodded his head. The contract of commodatum is in the stage of
preparation
7. 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
ofmutuality of contrac
8. The stages of a contract according to the order of their occurrence are
conception, perfection and termination
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 relativity of contracts
10. In a written contract the true intention of the parties was not reflected
therein through the fraud committed b y one of them, which fraud
prevented a meeting of the minds. The applicable remedy would be
annulment of the contract
11. This is not always an essential element of a contract form
12. Which of these constitutes fraud an expression of opinion which did not turn
out to be true if made by an expert and the other party relied on it;
13. As a security for a loan, S mortgaged his house and lot to B. Both parties
intended to enter a mortgage contract but the instrument as written states
that the house and lot is sold by S to B with right of repurchase. In this
case, the proper remedy is reformation;
14. The following are all factors vitiating consent, except negligence
15. A solemn or formal contract has the following essential elements consent
of the contracting parties, object certain, cause or consideration and formalities
required by law
16. This element exists only when they are expressly provided by the parties
accidental elements;
17. This is a real contract all of them
pf3
pf4

Partial preview of the text

Download Contract Law Exercises and Questions and more Exercises Business Accounting in PDF only on Docsity!

1. S sold his only car for P100,000.00 to B. Unknown to S, B bought the car

from him so that he could use the same in a bank robbery. What is the

status of the sale of the car by S to B? the sale is valid because the illegality of

the motive of the parties to the contract does not have any effect on its validity

2. Fraud exists in three of the following. Which is the exception? when the

misrepresentation refers to the usual exaggerations in trade, and the other party had an opportunity to know the facts

3. “A” bachelor lawyer, raped W twice. Upon learning this, “F” the father of

W, was able to force A to marry W under pain of being sued in court and

disbarred from the practice of his law profession. Which statement is

correct? there was no defect, the marriage was perfectly valid

4. Mr. S offered to sell his land to Mr. C for P100,000. Mr. C accepted the

offer and paid Mr. S P100,000 and Mr. S delivered the owner’s duplicate

of the Transfer Certificate of Title of the land. Mr. C wishes to register the

land in his name but the Register of Deeds asked Mr. C for the Deed of

Sale. What can Mr. C do? (Phil CPA 88-2) Mr. C may compel Mr. S to

execute the Deed of Sale because the contract is valid.

5. Three of the following may be valid objects of a contract, except mpossible

things or services

6. D asked C if the latter can grant him his washing machine with a fair

value of P50,000.00 for a term of one year and return the same. C

nodded his head. The contract of commodatum is in the stage of

preparation

7. 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

ofmutuality of contrac

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

conception, perfection and termination

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 relativity of contracts

10. In a written contract the true intention of the parties was not reflected

therein through the fraud committed b y one of them, which fraud

prevented a meeting of the minds. The applicable remedy would be

annulment of the contract

11. This is not always an essential element of a contract form

12. Which of these constitutes fraud an expression of opinion which did not turn

out to be true if made by an expert and the other party relied on it;

13. As a security for a loan, S mortgaged his house and lot to B. Both parties

intended to enter a mortgage contract but the instrument as written states

that the house and lot is sold by S to B with right of repurchase. In this

case, the proper remedy is reformation;

14. The following are all factors vitiating consent, except negligence

15. A solemn or formal contract has the following essential elements consent

of the contracting parties, object certain, cause or consideration and formalities required by law

16. This element exists only when they are expressly provided by the parties

accidental elements;

17. This is a real contract all of them

18. Which of the following is not a requisite for the validity of a contract?

delivery of the thing

19. A contract of commodatum has the following essential elements consent

of the contracting parties, object certain, cause or consideration and delivery of the object

20. 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? no, since the donation and its acceptance are not in a

public instrument;

21. Which of the rights of F. Poe arising from the said documents/contracts

will be transmitted to the heirs share of stock and promissory note

22. Three of the following are option money. Which is the earnest money?

given when contract of sale is perfected;

23. In a contract, as written, D promises to pay C P20,000 on September 15,

2018. The consideration received by D is not stated in the contract the

contract is valid because the cause is always presumed to exist

24. 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

25. Under this theory the contract is perfected at the moment when the

acceptance is declared or made by the offerree theory of manifestation

26. A deaf-mute who knows how to read enters into a contract with an

insolvent person after his discharge, the contract is valid

27. On Oct. 1, 2018, S offered to sell a specific car to B for P500,000.00. B

sent his letter of acceptance to S on October 8, 2018. On October 10,

2018, however, S died in a vehicular accident and his secretary received

the letter of acceptance on October 12, 2018 unaware that S had already

died. Which of these is correct the contract was not perfected because the

offer of S became ineffective when he died

28. Mistake in three of the following will make a contract voidable. Which one

will not? simple mistake of account

29. A voidable contact: all of the above

30. S offers to sell his car to B for P125,000.00 cash. B accepts the offer but

is willing to pay only P120,000.00. Which of these is correct? the contract

was not perfected because the acceptance by B was qualified and it constituted a counter-offer

31. C, the guardian of M, brought a fertilizer for land cultivation from J for

P400,000 but the market value is only P320,000. The contact is Valid

32. The presence of a vice of consent vitiates the consent of a party in a

contract and this renders the contract Voidable

33. A piece of land was the subject of a litigation between M and City of

Manila. After the case had been decided in favor of M, he sold it to B.

Which of these is correct?he sale cannot be rescinded because the litigation

had been decided in favor of M prior to the sale

48. Which is the correct order of application of the rules in connection with

solution of problems involving innominate contracts? 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;

49. The following except one, are the characteristics of void and inexistent

contract. Which is the exception? The defense of illegality of the contract is

available to third persons whose interest is not directly affected;

50. A voidable contract all of the above

51. A deaf-mute who knows how to read enters into a contract with an

insolvent person after his discharge, the contract is valid

52. This is not always an essential element of a contract form

53. The following are all factors vitiating consent, except negligence

54. 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 himP200,000 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

55. The Statute of Frauds applies only to wholly executory contracts

56. Which of the following is correct? n action to declare a contract void is not

subject to prescription