LUBRIN, Rodolf Angelo Conrad E.

Multiple Choice: 1390-1402

Instructions: Choose the best answer
1) A contract is voidable if the defect is caused by:
a) Legal incapacity to give consent, where one of the parties is incapable of giving consent to the
contract
b) Violation of consent, where the vitiation is done by mistake, violence, intimidation, undue influence,
or fraud
c) Both A and B
d) None of the above
2) What are Voidable or annullable contracts
a) Those which possess all the essential requisites of a valid contract but one of the parties is incapable
of giving consent, or consent is vitiated by mistake, violence, intimidation, fraud
b) Valid because all the essential requisites of a contract exist but by reason of economic injury or
damage to one of the parties or to third persons the contract may be rescinded
c) Those that cannot be enforced in court or sued upon by reason of certain defect unless they are
ratified.
d) Those which because of certain defects generally produces no effect at all
I. They are valid and binding unless annulled by a proper action in court
II. Once ratified, it become absolutely valid and can no longer be annulled
III. The existence of economic damage is essential for the annulment
IV The existence of economic damage is not essential for their annulment
3) The following statements are true about voidable contracts:
a) Both I and III
c) Statements in I, II and III
b) Both II and III
d) Statements in I, II and IV
4) Which of the following statement best describe Ratification
a) Ratification means that one voluntarily adopts some defective or unauthorized act or contract which,
without his subsequent approval or consent would not be binding on him
b) Ratification cleanses the contract from all its defect from the moment it was constituted
c) The action to annul a voidable contract is extinguished and thus become valid
d) All of the above
5) The requisites for implied ratification
a) There must be knowledge of the reason which renders the contract voidable
b) Such reason must have ceased
c) The injured party must have executed an act which necessarily implies an intention to waive his right
d) All of the above

6) Implied or tacit ratification may be shown by

a) Silence or acquiescence
b) Acts showing adoption or approval of the contract
c) Acceptance and retention of benefits flowing therefrom
d) All of the above
S, a minor, sold his land to B. Upon reaching the age of majority, S with full knowledge of his
rights in the premises, instead of repudiating the contract, disposed of the greater part of the
proceeds or collected the unpaid balance of the purchase price from B.
7) In this case,
a) There is tacit ratification by S
b) There is express ratification by S

c) The contract cannot be ratified because S is a minor

d) The contract is void from the beginning

In an action for annulment of a contract of sale, S alleged that the sale was executed by him
through the threat and intimidation of B. It appears, that S deposited the check for the purchase price
and withdrew the money from time to time
8) In this case,
a) The contract may still be annulled
b) The contract is deemed ratified

c) The contract is void from the beginning

d) The contract is unenforceable

9) A contract entered into by an incapacitated person may be ratified by:

a) The guardian
b) The injured party himself provided he is already capacitated
c) Third person
d) Both A and B
10) Which statement is correct
a) The consent of the guilty party is required in Ratification
b) Ratification is a bilateral act by which the party waives the defect in the contract
c) Ratification does not require the conformity of the contracting party who has no right to bring the
action for annulment
d) Both A and B
B forced S to sell the latters horse. Later, the horse gave birth to a colt. S ratified the contract
after the birth of the colt.
11) Who is entitled to the colt
a) S, because ratification has a retroactive effect
b) B, because ratification has a retroactive effect

c) S, because his consent was vitiated

d) S and B are co-owners of the colt

12) Who can bring an action for annulment in a voidable contract

a) The plaintiff who has an interest in the contract
b) The victim whose consent is vitiated
c) The party responsible for the defect
d) Both A and B
13) May a stranger challenge the validity of a voidable contract
a) Yes, if they can show detriment which would positively result to them from the contract in which they
had no intervention or participation
b) Yes because anyone may challenge the validity of a voidable contract
c) No because they have no right to bring action for they are not obliged by the contract
d) No because they are not a party to the contract
S sold a parcel of land to B. The consent of S was vitiated by fraud. Subsequently, S sold the
same lot to C
14) Who can bring an action to annul the sale
a) S can bring an action because his consent was vitiated
b) B can bring an action because he is the first buyer
c) C can bring an action because the contract of S and B may cause damage or injury to him
d) None, because the sale is valid
15) If the obligation has been annulled, the contracting parties shall restore to each other
a) The things which have been the subject matter of the contract
b) The fruits of the subject matter of the contract
c) The price with its interest
d) All of the above
16) When the defect of the contract consists in the incapacity of one of the parties,
a) The incapacitated person is obliged to make restitution only to the extent that he was benefited by
the thing or price received by him
b) If the incapacitated person was not benefited, he is not obliged to restore what he had received
c) The other contracting party is still bound to return what he had received whether he was benefited or
not
d) All of the above
17) If the thing to be returned is lost without the fault of the person obliged to make restitution,
a) There is no more obligation to return such thing
b) The other party cannot be compelled to restore what in virtue of the decree of annulment he is
bound to return
c) His obligation is not extinguish but is converted into an indemnity for damages
d) Both A and B

18) If the thing to be returned is lost through the fault of the person obliged to make restitution
a) There is no more obligation to return such thing
b) The other party cannot be compelled to restore what in virtue of the decree of annulment he is
bound to return
c) His obligation is not extinguish but is converted into an indemnity for damages
d) Both A and B
19) S sold his plow and carabao to B. On the petition of S, The contract was annulled by the court. But
the carabao died in the possession of B through his fault. If the carabao had given birth before its
death, what is the remedy of the party
a) B must pay the value of the carabao at the time of its death, with interest from the same date
b) B must return the plow sold to him by S
c) B must deliver the young, as the fruit of the said animal
d) All of the above
G forced V to take Gs apartment in Makati in exchange for Vs rest house in Batangas. V
subsequently asked for annulment and the court gave the decree of annulment ordering G and V to
return to each other what had been received.
20) If due to Gs fault or due to a fortuitous event, the Batangas rest house is destroyed, G should give
V
a) The rentals of the rest house only
b) The value of the rest house at the time of the loss only
c) Interest on the value of the rest house from the time it was destroyed only
d) All of the above
21) If, due to Vs fault, the Makati apartment is destroyed
a) V loses his right to commence an action to annul the contract
b) V can still annul the contract
c) V may compel G to give back his Batangas rest house
d) All of the above
22) If due to a fortuitous event, the Makati apartment is destroyed
a) V loses his right to commence an action to annul the contract
b) V can still annul the contract
c) V may compel G to give back his Batangas rest house
d) All of the above
23) If V is a minor and the Makati apartment was destroyed by a fortuitous event
a) V can still seek for annulment and recover his Batangas rest house because V will not benefit from the
Makati apartment which has already been destroyed
b) V can still seek for annulment and recover his Batangas rest house but V must pay the value of the
Makati apartment

c) V cannot seek for annulment of the contract

d) Both A and B
24) If V is a minor and he intentionally sets fire to the Makati apartment
a) V can still seek for annulment and recover his Batangas rest house because V will not benefit from the
Makati apartment which has already been destroyed
b) V can still seek for annulment and recover his Batangas rest house but V must pay the value of the
Makati apartment
c) V cannot seek for annulment of the contract
d) Both A and B
25) Rescission is a remedy based on
a) Law
c) Fact
b) Equity
d) Stipulations
26) Restoring to each other things which have been the subject matter of the contract, together with
fruits and the price with interest
a) Annulment
c) Rescission
b) Mutual restitution
d) Ratification
27) Any oral or written manifestation of the person entitled to ask for annulment that he agrees to be
bound by the contract or that he will not seek its annulment.
a) Implied ratification
c) Express ratification
b) Agreement
d) None of the above
28) Voidable contracts are binding until annulled by
a) Competent court
c) Contracting parties
b) Third person
d) either of the two contracting parties
29) Acts showing adoption or approval of the contract or by acceptance and retention of benefits
flowing therefrom.
a) Implied ratification
c) Express ratification
b) Agreement
d) None of the above
30) Act or means by virtue of which efficacy is given to contract which suffers from a vice of curable
nullity.
a) Annulment
c) Rescission
b) Mutual restitution
d) Ratification