Rescissible-Contracts PDF

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Question 1 Is a remedy granted by law to the contracting parties and even to third persons, to secure the reparation of damages caused to them by a contract, even if this would be valid, by restoration of things to their condition at the moment prior to the celebration of the contract Answer: Rescis...

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Question 1 Is a remedy granted by law to the contracting parties and even to third persons, to secure the reparation of damages caused to them by a contract, even if this would be valid, by restoration of things to their condition at the moment prior to the celebration of the contract Answer: Rescission

Question 2 D is indebted to C for P10,000. For the purpose of defrauding C, D sold his only parcel of land to X valued P10,000. X had no knowledge of the intention of D. Answer: The contract between D and X is binding.

Question 3 Reluctantly and against her good sense and judgment, Rose entered into a contract for the delivery of five (5) tables to Corazon for the price of P15,000. The contract is Answer: Valid Question 4 This kind of defective contract refers to that contract which is validly agreed upon because all the essential elements exist, but courts can nullify it when there is damage or prejudice to one of the parties or to a third person. Its enforcement would cause injustice by reason of some external facts. Answer: Rescissible contract

Question 5 A defective contract where damage or lesion is essential is Answer: Rescissible

Question 6 A made a donation to B. Later, A contracted several debts. What A has left as assets are much less than his present liabilities. May the donation be rescinded? Answer: No, because the debts were incurred after the donation. SAME QUESTION: Question 7 The following instances are badges of fraud, except: Answer: A sale upon credit by a solvent debtor. Question 11 The following instances are badges of fraud, except: Answer: The fact that the consideration of the conveyance is inadequate

SAME QUESTION: Question 8 Three of the following are rescissible, which is not? Answer: None of the above Question 27 Three of the following are rescissible, which is not? Answer: Contract of sale and the price is unusually inadequate resulting to lesion Question 9 Which of the following contracts is rescissible? Answer: Those which are entered into by guardians whenever the wards whom they represent suffer a lesion of more than ¼ of the value of the object of the contract Question 10 D, fearing that his creditor C, would go after his only parcel of land to satisfy his claim for payment of D's debt, sold his land to X who did not know of D's intention. Decide. Answer: C cannot ask for the rescission of the sale Question 12 An accion pauliana presupposes the following, except: Answer: None of the above SAME QUESTION: Question 13 The following are rescissible contracts, except: Answer: Those where one of the contracting party is incapacitated Question 22 The following are rescissible contracts, except: Answer: Those covered by statute of frauds SAME QUESTION: Question 14 The following are the requisites for action to rescind contracts in fraud of creditors, except: Answer: The third person who received the property conveyed, if it is onerous title, has been in good faith The following are the requisites for action to rescind contracts in fraud of creditors, except: Answer: The creditor has other legal remedy to satisfy his claim.

Question 15 It is when the debtor has more liabilities than his assets. Answer: Insolvency Question 16 The following are defective contracts, except: Answer: None of the above

Question 17 This contract will cause damage or injury to one of the contracting parties or to a third person. Answer: Rescissible contract

Question 18 To defraud his creditors, Ana contracted with Bolay by selling a land to Bolay. Bolay now seeks to register the land with the Register of Deeds. Xeus, a creditor of Ana seeks to prevent registration on the ground that the contract is rescindible. Despite Xeus' objection, may the land be registered based on the contract in Bolay's name? Answer: The land can be registered based on the contract because the contract is not yet rescinded Question 19 To defraud his creditors, A sold his real property to B. B now seeks to register the sale. X, a creditor seeks to prevent the registration on the ground that it is a rescissible contract. Despite X's objection may the land be registered in B's name? Answer: Yes, because the contract although rescissible is valid

Question 20 Example No. 1: Guardian of W, sold W's house valued at Php50,000 for Php37,500 or a lesion by 1/4 of the value. Example No. 2: X sold his house valued at P50,000 for only Php10,000 because X did not know the true value of the house. Answer: Both contracts are valid and enforceable Question 21 G was appointed as the guardian of M, a minor, who owns a parcel of land valued at Php1M. M sold the land only for Php700,000. The contract is WRONG Answer: Rescissible

Other choices: voidable, unenforceable, void Answer: Voidable

Question 23 Which is the least defective contract? Answer: Rescissible contract

Question 24 Entails the return of the benefits that each party may have received as a result of the contract. Answer: Mutual restitution Question 25 To defraud his creditor, A sold his house to X. When however the creditor wanted to collect his credit, somebody lent A enough money. Is the sale rescissible? Answer: No, because the creditor can collect the credit due him

Question 26 A sold to B his parcel of land worth Php1M for only half a million pesos. After the sale and realizing his damage, S is now seeking to set aside the sale. Decide: Answer: The sale is valid, binding, and enforceable

Question 28 Is a relief which the law grants on the premise that the contract is valid for the protection of one of the contracting parties and third persons from all injury and damage the contract may cause, or to protect some incompatible and preferential right created by the contract. Answer: Rescission Question 29 The following successive measures must be taken by a creditor before he may bring an action for rescission of an allegedly fraudulent sale, except: Answer: Immediately file an action for annulment of sale

Question 30 This means bringing the parties back to their original status prior to the inception of the contract.

Answer: Mutual restitution

31. A, guardian of B, sold B’s house and lot worth Php480,000 for Php240,000. Answer: The contract can be rescinded because of inadequacy of price 32. S owns an oil painting. Being in need of money, S sold the painting to B for P10,000. After the sale, it was discovered that the painting was valuable and worth P50,000. Answer: B is entitled to the benefit of the contract because it is valid and binding 33. Statement No. 1 – Rescission creates the obligation to return the things which were the object of the contract, together with their fruits, and price with its interest consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore. Statement No. 2 - Neither shall rescission take place when things which are the object of the contract are legally in the possession of third persons who did not act in bad faith. Answer: Both are true 34. A person, usually a minor, who is under a guardian’s charge or protection. Answer: Ward 35. The exhaustion of all remedies by the prejudiced creditor to collect claims due him before rescission is resorted to. Answer: Subsidiary remedy 36. Rescission of contract can take place in this case: Answer: When he who demands rescission can return whatever he may obliged to restore. 37. The action to rescind contracts in fraud of creditors. Answer: accion pauliana 38. Gorgonio, legal guardian of Nino, 13 years old, sold Nino’s property worth Php100,000 for Php70,000 only, without court approval. The contract is Answer: Rescissible Try: Voidable 39. Which of the following contract is not rescissible? Answer: Those were one of the parties is incapable of giving consent to a contract. 40. D is indebted to C in the sum of P10,000. For the purpose of avoiding the claims of C, D donated all his properties worth the same amount to X.

Answer: The contract is rescissible....