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Since 1977BUSINESS LAW ATTY. ONG/LOPEZBL-Drill 2 - Contract OCT 2012 Mistake in three of the following will make a contract voidable. Which one will not? a. Mistake as to the substance of the thing which is the object of the contract. b. Mistake as to the principal conditions which principally moved...

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Since 1977

BUSINESS LAW BL.1301-Drill 2 - Contract 1. Mistake in three of the following will make a contract voidable. Which one will not? a. Mistake as to the substance of the thing which is the object of the contract. b. Mistake as to the principal conditions which principally moved one or both parties to enter into the contract. c. Mistake as to the identity or qualifications of one of the parties, which identity or qualifications have been the principal cause of the contract. d. Simple mistake of account. 2. The Statute of Frauds applies only to: a. wholly executed contracts. b. contracts wholly or partially executed on the part of the debtor. c. contracts wholly or partially executed on the part of the creditor, d. wholly executory contracts. 3. Severino, orally sold a one-square meter lot for P475.00 to Benedicto, chairman of Barangay Mapayapa, who was officially authorized in a barangay resolution to look for and buy a lot where the barangay would construct a barangay marker. Since Benedicto did not have sufficient cash at that time, he told Severino that he would give the amount the following day. The next day, Benedicto went to the place of Severino to pay the price of the lot but Severino refused to accept it, saying that the sale is unenforceable not being in writing. a. The sale of the lot is enforceable although not in writing because the price is less than P500.00. b. The sale is enforceable because Benedicto was duly authorized to buy the lot through a resolution which is in writing. c. The sale of the lot is void not being in a public instrument. d. The sale is unenforceable since the sale of real property must be in writing regardless of the price to be enforceable. 4. The action for annulment must be brought within four years. Which of the following is false with respect to the reckoning of the beginning of the prescriptive period? a. In cases of intimidation, violence and undue influence, the period begins from the time the defect in the consent ceases. b. In case of fraud, the period begins to run from the discovery thereof. c. In case of mistake, the period begins to run from the time it was committed. d. In cases of contracts entered into by minors or other incapacitated persons, the period runs from the time guardianship ceases. 5. One of the following statements concerning ratification of a voidable contract is false. Which is it? a. Ratification extinguishes the action to annul a voidable contract. b. Ratification cleanses the contract from all its defects from the moment it was constituted. c. Ratification requires the conformity of the party who has no right to bring the action for annulment. d. Ratification may be made by the guardian of the incapacitated person, or the incapacitated person upon attaining capacity, or the party whose consent was vitiated.

ATTY. ONG/LOPEZ OCT 2012 6. The following, except one, are the characteristics of void or inexistent contract. Which is the exception? a. They are not subject to ratification b. The right to raise defense of illegality cannot be waived. c. The defense of illegality of the contract is available to third persons whose interest is not directly affected. d. The action or defense for declaration of the nullity or inexistence of the contract does not prescribe. 7. S sometime in 2009 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 2010 In 2012, 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: a. Year 2009 the date of the contract b. Year 2010 the date of registration with the Register of Deeds. c. Year 2012 the date the fraud was discovered. d. The action to annul a contract based on fraud is not subject to prescription. 8. The following agreements are covered by the Statute of Fraud. Choose the exception. a. An oral agreement which by its terms is not to be performed within one year from the making thereof. b. An oral special promise to answer for the debt, default or miscarriage of another. c. An oral agreement in consideration of marriage. d. An oral contract of partnership where the contribution in money or personal property amounts to P3,000 or more. e. None of the above. 9. Caloy the guardian of Martinez bought a fertilizer for land cultivation from Jonas for P400,000 but the market value is only P320,000. The contract is: a. Rescissible c. Unenforceable b. Voidable d. Valid 10. Which of the following is not covered by statute of fraud? I – Oral contracts for a piece of work to be performed after fifteen (15) months from the date of perfection of the contract. II – Oral sale of personal computer worth P50,000 III – Oral sale of real property worth P20,000 IV – Sale of Real property in private writing worth P100,000. a. I, III and IV c. I and IV b. I II, and IV d. IV only 11. D owes the following creditors: X, P50,000.00; Y, P60,000.00; and Z P90,000.00. He has assets valued at P400,000.00. Subsequently, D donated, among his assets, a parcel of land valued at P250,000.00 to C. The donation and acceptance were made in a public instrument. The donation of the land made by D to C is: a. rescissible, because it was presumed to have been made in fraud of creditors. b. unenforceable, because D was not authorized by his creditors. c. void, because the donation and acceptance should be registered. d. voidable, because D does not have the free disposal of his property.

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