CONTRACTS c) Formality

CHAPTER 1: GENERAL PROVISIONS d) Meeting of the minds

1. What is the basic requirement for the validity of a 8. What is the term for a contract where one party
contract, according to Article 1305? provides a prestation without expecting anything in
a) Written form return?
b) Meeting of the minds a) Gratuitous contract
c) Notarization b) Bilateral contract
d) Government approval c) Unilateral contract
d) Quasi-contract
2. Which party in a contract must have the capacity
to give consent? 9. According to Article 1310, what is the rule
a) Both parties regarding the binding force of a contract?
b) Only the offeror a) Contracts are never binding.
c) Only the offeree b) Contracts are always binding.
d) Neither party c) Contracts are binding only if ratified by the
government.
3. What is the term for a contract where one or both d) Contracts are binding, but their performance
parties provide a prestation in exchange for a may be suspended or set aside.
counter-prestation?
a) Gratuitous contract 10. What is the term for a contract where only one
b) Bilateral contract party makes a promise, and the other party's
c) Unilateral contract performance is optional?
d) Quasi-contract a) Gratuitous contract
b) Bilateral contract
4. When does a contract become binding on the c) Unilateral contract
parties involved? d) Quasi-contract
a) Upon negotiation
b) Upon acceptance of the offer 11. What is the term for a contract where one party
c) Upon drafting is obligated to deliver a specific thing, and the other
d) Upon ratification party is obligated to pay a price?
a) Sale
5. Which article deals with the effects of contracts b) Lease
being limited to the parties who entered into them? c) Donation
a) Article 1305 d) Loan
b) Article 1306
c) Article 1307 12. In a contract of sale, what is the prestation of
d) Article 1308 the seller?
a) Payment of the price
6. What is the primary duty of parties in a contract, b) Delivery of the thing
as per Article 1308? c) Fulfillment of any condition
a) To perform their obligations d) None, the seller has no prestation
b) To consult an attorney
c) To involve a notary 13. What is the term for a contract where one party
d) To cancel the contract grants a favor or benefit to another without
expecting anything in return?
7. According to Article 1309, what is required for a a) Sale
contract to be valid and enforceable? b) Lease
a) Public record c) Donation
b) Written consent d) Loan
14. According to Article 1314, what is required for a c) The contract is valid and binding.
donation to be valid? d) The contract must be notarized.
a) Written form
b) Notarization 21. What is the legal age required for a person to
c) Meeting of the minds have the capacity to enter into a contract in most
d) Government approval jurisdictions?
a) 16 years old
15. What is the term for a contract where one party b) 18 years old
delivers a specific thing to another, who agrees to c) 21 years old
return the same thing after a certain period? d) 25 years old
a) Sale
b) Lease 22. In a contract, what is the term for the prestation
c) Donation that each party gives to the other?
d) Loan a) Consideration
b) Offer
16. In a contract of lease, what is the prestation of c) Acceptance
the lessor? d) Consent
a) Payment of the rent
b) Delivery of the thing 23. Which article states that contracts are perfected
c) Fulfillment of any condition by mere consent?
d) None, the lessor has no prestation a) Article 1318
b) Article 1319
17. Which article deals with the principle that c) Article 1320
obligations arising from contracts have the force of d) Article 1321
law between the parties and should be complied
with in good faith? 24. What is the term for a contract where one party
a) Article 1305 provides a prestation subject to a condition while
b) Article 1306 the other party's performance is immediate?
c) Article 1307 a) Sale
d) Article 1308 b) Lease
c) Donation
18. In a bilateral contract, what is the primary d) Conditional contract
characteristic?
a) Only one party makes a promise. 25. In a contract, what is the term for the act of
b) Both parties make a promise. agreeing to the terms of the offer without any
c) The contract is verbal. modifications?
d) The contract is one-sided. a) Counter-offer
b) Acceptance
19. What is the term for a contract where one party c) Consent
promises to give a reward if the other party d) Revocation
performs a specific act?
a) Sale 26. What is the term for a contract where one party
b) Lease makes a promise in exchange for the other party's
c) Donation performance?
d) Reward or bounty a) Bilateral contract
b) Unilateral contract
20. What is the effect of a contract's meeting of the c) Gratuitous contract
minds, as stated in Article 1318? d) Option contract
a) The contract is void.
b) The contract is unenforceable.
27. According to Article 1321, what happens when c) Acceptance
the offeree makes a counter-offer? d) Revocation
a) The original offer becomes void.
b) A new contract is formed based on the 34. What is the term for a contract where both
counter-offer. parties make promises and are obligated to perform
c) Both parties are released from the original their respective promises?
offer. a) Unilateral contract
d) The counter-offer has no legal effect. b) Gratuitous contract
c) Bilateral contract
28. What is the term for a contract where one party d) Option contract
is obligated to do something upon the occurrence of
a specific event? 35. According to Article 1318, what is the essential
a) Sale requirement for a contract to be valid?
b) Lease a) Written form
c) Donation b) Public record
d) Conditional contract c) Meeting of the minds
d) Government approval
29. According to Article 1320, when is an
acceptance considered effective if sent by mail? 36. In a contract, what is the term for the
a) Upon mailing expression of one party's intention to create legal
b) Upon receipt by the offeror relations with another?
c) After a 10-day waiting period a) Consent
d) After notarization b) Offer
c) Acceptance
30. What is the term for a contract in which one d) Counter-offer
party grants another the right to buy a property at a
specified price within a specified period? 37. What is the term for a contract where one party
a) Sale promises to give a reward if the other party
b) Lease performs a specific act?
c) Option contract a) Sale
d) Gratuitous contract b) Lease
c) Donation
31. What is the term for the party making an offer d) Reward or bounty
in a contract?
a) Offeror 38. According to Article 1322, when can an offeror
b) Offeree revoke an offer?
c) Consignor a) Anytime, without notice
d) Consignee b) Only if the offeree accepts the offer
c) Before the offeree accepts, without notice
32. In a contract, what is the term for the person to d) Only with the approval of the court
whom the offer is made?
a) Offeror 39. What is the term for a contract where one party
b) Offeree delivers a specific thing to another, who agrees to
c) Consignor return the same thing after a certain period?
d) Consignee a) Sale
b) Lease
33. What is the primary element of a contract that c) Donation
distinguishes it from a gift or donation? d) Loan
a) Consent
b) Consideration
40. What is the term for an acceptance that is made 6. In a contract, what happens if the offeree makes
through actions or behavior rather than explicit a counter-offer, according to Article 1321?
words? a) The original offer is void.
a) Express acceptance b) A valid contract is formed based on the
b) Implied acceptance counter-offer.
c) Conditional acceptance c) The offeror can accept both the original offer
d) Revocable acceptance and the counter-offer.
d) The original offer remains valid, and the
counter-offer is void.
CHAPTER 2: ESSENTIAL REQUISITES OF A
CONTRACT Correct answer: d) The original offer remains
valid, and the counter-offer is void.
1. What is the effect of a contract's meeting of the
minds, as stated in Article 1318? 7. Which article deals with the revocation of an
a) The contract is void. offer before it is accepted?
b) The contract is unenforceable. a) Article 1319
c) The contract is valid and binding. b) Article 1320
d) The contract must be notarized. c) Article 1322
d) Article 1323
2. According to Article 1319, what is required for a
contract to be valid? 8. According to Article 1322, when is an offer
a) Public record considered revoked?
b) Written consent a) When it is accepted by the offeree
c) Meeting of the minds b) When the offeror withdraws it before
d) Government approval acceptance
c) When the offeror changes the terms
3. In a contract, what is the term for the expression d) When the offeror dies
of one's will to another party that the former desires
to contract? 9. What is the term for a contract where the offeror
a) Consent binds himself to keep the offer open for a certain
b) Acceptance period?
c) Offer a) Irrevocable offer
d) Meeting of the minds b) Option contract
c) Unilateral contract
Correct answer: c) Offer d) Counter-offer

4. What is the term for the manifestation of assent 10. According to Article 1323, when does an option
to the terms of an offer, as provided in Article 1320? contract become binding?
a) Consent a) When the offeror receives the acceptance
b) Acceptance b) When the offeree makes a counter-offer
c) Offer c) When the option is exercised within the
d) Meeting of the minds specified period
d) When the option is signed by a notary
5. What type of acceptance must be made in the
same terms as the offer to create a valid contract, as 11. What does Article 1319 require for contracts
per Article 1321? involving real property or an interest therein?
a) Express acceptance a) Public record
b) Implied acceptance b) Written consent
c) Counter-offer c) Meeting of the minds
d) Conditional acceptance d) Government approval
12. According to Article 1320, when is an a) Earnest money
acceptance of an offer considered effective? b) Rent
a) When the offeror receives it c) Commission
b) When it is notarized d) Interest
c) When the offeror approves it
d) When it is registered with the government 19. What is the term for a contract in which one
party grants the other the exclusive right to
13. What is the term for an acceptance that is made purchase a property within a specified period?
through actions or behavior rather than explicit a) Lease
words? b) Option contract
a) Express acceptance c) Sale
b) Implied acceptance d) Donation
c) Counter-offer
d) Conditional acceptance 20. What is the primary purpose of Article 1323 in
relation to option contracts?
14. In a contract, what is the term for a response by a) To ensure all option contracts are notarized
the offeree that introduces new terms while b) To specify a maximum period for options
purporting to accept the offer? c) To provide a default period in the absence of a
a) Consent specified one
b) Acceptance d) To require government approval for option
c) Offer contracts
d) Counter-offer

15. According to Article 1322, what is the exception

to the revocation of an offer?
a) When the offeror changes the terms
b) When the offeror is not aware of the revocation
c) When the offeror dies
d) When the offeree does not respond within a
reasonable time

16. What is the term for an offer that cannot be

withdrawn during a specified period due to a
separate agreement?
a) Irrevocable offer
b) Option contract
c) Unilateral contract
d) Counter-offer

17. According to Article 1323, when does an option

contract become binding in the absence of a
specified period?
a) When the offeror receives the acceptance
b) When the offeree makes a counter-offer
c) When the option is exercised
d) When the option is signed by a notary

18. In an option contract, what does the optionee

typically pay the optionor for the right to purchase
the property at a later date?