12.

An offer in a contract refers to a promise that is dependent on a certain act, promise, or

forbearance given in exchange for the initial promise. It demonstrates a willingness to enter into
an agreement and invites the other party to conclude the agreement by expressing assent. The
person (or company) who makes the offer is known as the “offeror”, and the recipient of the offer
is the “offeree”. The offer must be communicated to the offeree, and the offeree must know of it
before the law will consider the offer as a valid offer.
Now, let’s look at the options you’ve provided:
a. An offer made through an agent: Yes, an offer can be made through an agent. The agent is
acting on behalf of the offeror (the person making the offer), so this can constitute an
offer.
b. Business advertisement of things for sale: Typically, a business advertisement of things
for sale is considered an “invitation to treat” rather than a formal offer. This is because
it’s an invitation for customers to make an offer to buy, which the seller can then accept
or reject.
c. Advertisement for bidders: This is also usually considered an “invitation to treat”. It’s an
invitation for people to make an offer (in this case, a bid), which can then be accepted or
rejected.
d. Answer not given: This option doesn’t provide any information.
So, based on the information above, option “a. An offer made through an agent” would be the
one that constitutes an offer in the context of a contract.
13. When there is concurrence of the offer and acceptance, the correct answer is:
a. Consent
In contract law, consent refers to the agreement between the parties involved in a contract. It is
manifested when there is a meeting of the offer and acceptance. The offeror makes an offer to the
offeree, and the offeree accepts the offer, indicating their agreement to the terms and conditions
of the contract. This mutual agreement or consent is essential for the formation of a valid
contract.
Therefore, when there is concurrence of the offer and acceptance, it signifies the presence of
consent between the parties involved.
14. a. No. Mr. Aguas did not accept the offer of Mr. Santos.
Mr. Santos initially offered to sell a 500 sq. m lot for P300,000 and provided an option time for
Mr. Aguas to raise the funds. However, on October 31, 2015, Mr. Santos sent a letter asking for a
new price of P350,000 for the lot. Since Mr. Aguas did not accept the revised price of P350,000,
he cannot compel Mr. Santos to accept the original offer of P300,000 and make him sign and
execute a Deed of Sale. For a contract to be formed, there must be a clear acceptance of the offer
as it was originally presented.
Therefore, the correct answer is a. No. Mr. Aguas did not accept the offer of Mr. Santos.
15. The correct answer is:
C. No, because the acceptance was qualified and it constituted a counter-offer.
In this scenario, France offered to sell her cellular phone to her friend, Serra, for a price of
P10,000. However, Serra accepted the offer but proposed to pay only P8,000 instead of the
original price. This constitutes a counter-offer, where Serra is suggesting different terms than
those initially offered by France.
When a counter-offer is made, it acts as a rejection of the original offer and becomes a new offer
itself. In this case, Serra’s acceptance of the offer at a reduced price of P8,000 qualifies as a
counter-offer, as it introduces a new term (the lower price) to the agreement.
Therefore, there is no perfected contract because the acceptance was qualified and constituted a
counter-offer. The original offer made by France was not accepted as it was presented, and the
terms of the agreement were changed by Serra’s counter-offer.
16. The correct answer is:
D. None, because at the time of the receipt of the letter of acceptance, there had already
been a prior revocation of said acceptance.
In this scenario, Abaca offered to sell his car to Batangueño in writing on July 1 for P300,000.
Batangueño accepted the offer and mailed the letter of acceptance on July 10, which was
received by Abaca on July 20. However, on July 15, Batangueño had already mailed a letter
revoking his acceptance.
In contract law, an acceptance is valid when it is communicated to the offeror. In this case, the
acceptance was communicated through the mailed letter, which was received by Abaca on July
20. However, Batangueño had already revoked his acceptance by mailing the revocation letter on
July 15, which was before Abaca received the acceptance.

According to the principle of revocation of acceptance, a revocation is effective when it is

communicated to the offeror before or at the same time as the acceptance. Since Batangueño had
already revoked his acceptance before Abaca received it, there is no valid contract formed
between them.
Therefore, the correct answer is d. None, because at the time of the receipt of the letter of
acceptance, there had already been a prior revocation of said acceptance.
17. A. Agent
When an offer is made through an agent, the acceptance is communicated directly to the agent.
The agent acts as the representative of the principal and has the authority to accept offers on their
behalf. Therefore, when the offeree communicates their acceptance to the agent, it is considered
as acceptance communicated to the agent.
The agent then relays the acceptance to the principal, and the acceptance is binding once it
reaches the principal. However, the acceptance is initially communicated to the agent.
18. B. Option money
In the context of contracts, option money refers to the money paid or promised to be paid in
consideration for an option. An option is a contractual right that gives the holder the choice to
buy or sell an asset at a predetermined price within a specified period of time. Option money is
the payment made by the holder of the option to the grantor of the option in exchange for the
right to exercise the option.
Option money serves as consideration for the grantor’s promise to hold the option open for the
specified period of time. It is a form of payment that demonstrates the holder’s serious intent to
potentially exercise the option in the future. If the option is exercised within the specified period,
the option money may be applied towards the purchase price of the underlying asset.
Therefore, in the given scenario, the correct answer is b. Option money.
a. Option period: The option period refers to the specified timeframe during which the
holder of an option has the right to exercise the option. It is the duration within which the
option can be exercised before it expires.
b. Option money: Option money, also known as an option fee or consideration, is the money
paid or promised to be paid by the holder of an option to the grantor of the option. It
serves as consideration for the grantor’s promise to hold the option open for a specified
period of time.
c. Earnest money: Earnest money, also known as a deposit or a down payment, is a sum of
money paid by a buyer to a seller as a demonstration of good faith and commitment to a
real estate transaction. It is usually paid when making an offer to purchase a property and
is held in escrow until the transaction is finalized.
d. Payment: Payment refers to the act of transferring money or something of value from one
party to another in exchange for goods, services, or the fulfillment of a contractual
obligation. It is the act of settling a financial obligation or making a monetary transaction.
In the given context, the correct choice is b. Option money, as it specifically refers to the money
paid or promised to be paid in consideration for an option.
19. C. Ventigo may refuse to sell his car even if the price offered is fair and equitable.
In the given scenario, Ventigo placed an advertisement in the Classified Ads section of a
newspaper, stating that a car (Honda City, Model 2003) is for sale. The advertisement provides
contact details for interested buyers to call or text, as well as an address (25 Abella St., Naga
City) to visit.
Based on this information, Ventigo has the right to refuse to sell the car, even if the price offered
by potential buyers, such as Ayalin, is fair and equitable. Placing an advertisement in a
newspaper does not constitute a binding contract or obligation to sell the car to anyone who
shows interest.
Ventigo has the discretion to decide whether or not to sell the car and to whom. They have the
right to consider factors such as their own preferences, market conditions, or other personal
circumstances when deciding whether or not to proceed with a sale.
Therefore, the correct answer is c. Ventigo may refuse to sell his car even if the price offered is
fair and equitable.
It is important to note that this answer is based on general contract principles and may vary
depending on specific laws and regulations in different jurisdictions. Consulting with a legal
professional would provide more accurate advice in specific cases.
20. The correct answer is:
D. Deaf mutes who know how to read but do not know how to write.
In the context of giving consent to a contract, it is important to consider the ability of individuals
to understand the terms and implications of the contract. While the law may vary in different
jurisdictions, generally, individuals who have the capacity to understand the terms of a contract
and express their consent can be considered qualified to give consent.
In the given options:
a. Unemancipated minors: Minors who have not reached the age of majority are generally
considered to lack the legal capacity to give consent to a contract. However, there may be
exceptions for certain types of contracts, such as those for necessities.

b. Insane or demented persons: Individuals who are declared insane or suffering from a
mental impairment may lack the legal capacity to give consent to a contract. Their ability
to understand the terms and implications of the contract may be compromised.
c. Deaf mutes who do not know how to write: Individuals who are deaf and mute and do not
possess the ability to write may face challenges in fully understanding and expressing
their consent to a contract. Their communication limitations may impact their ability to
give informed consent.
d. Deaf mutes who know how to read but do not know how to write: Individuals who are
deaf and mute but possess the ability to read can potentially understand the terms of a
contract by reading them. While they may not be able to express their consent in writing,
 their ability to comprehend the contract through reading can be considered in determining
their capacity to give consent.
It is important to note that legal capacity and the ability to give consent can be complex issues,
and they may be subject to specific laws and regulations in different jurisdictions. Consulting
with a legal professional would provide more accurate advice based on the specific
circumstances and applicable laws.
21. The correct answer is:
D. None of the above
A contract entered into during a lucid interval is not classified as voidable, unenforceable, or
void. Instead, it is considered a valid and enforceable contract.
In legal terms, a lucid interval refers to a period of time in which a person who is normally
incapacitated or lacking mental capacity due to a mental illness or condition experiences a
temporary period of clarity and soundness of mind. During this lucid interval, the person is
capable of understanding the nature and consequences of their actions, including entering into
contracts.
When a person enters into a contract during a lucid interval, their mental capacity is restored
temporarily, allowing them to give valid and effective consent to the contract. As a result, the
contract is considered valid and enforceable, just like any other contract entered into by a person
with full mental capacity.
Therefore, the correct answer is d. None of the above.
It’s important to note that contract laws may vary in different jurisdictions, and specific
circumstances can influence the validity and enforceability of contracts. Consulting with a legal
professional can provide more accurate advice based on the applicable laws and specific
situation.
a. Voidable: A voidable contract is one that is initially valid and enforceable, but can be
voided or canceled by one or both parties involved. This typically occurs when one party
has the right to rescind or terminate the contract due to certain legal grounds, such as
fraud, duress, undue influence, or a mistake. However, a contract entered into during a
lucid interval is not considered voidable because the person entering into the contract has
the mental capacity to give valid consent.
b. Unenforceable: An unenforceable contract is one that is validly formed, but due to certain
legal reasons, cannot be enforced by a court of law. This can happen when a contract
lacks certain formalities required by law, such as a written agreement for a contract that
must be in writing. However, a contract entered into during a lucid interval does not fall
under the category of unenforceable because it satisfies the necessary requirements for a
valid contract.
 c. Void: A void contract is one that is considered to have no legal effect from the beginning.
It is essentially treated as if it never existed, and neither party can enforce the terms of the
contract. Void contracts typically arise when they involve illegal activities, lack legal
capacity, or violate public policy. However, a contract entered into during a lucid interval
is not void because the person entering into the contract has the necessary mental
capacity to give valid consent.
d. None of the above: This option indicates that none of the provided choices accurately
describe the classification of a contract entered into during a lucid interval. As explained
earlier, a contract entered into during a lucid interval is considered valid and enforceable,
rather than being voidable, unenforceable, or void.
22. D. Valid
In this scenario, Esguerra, who was previously confined in a mental hospital and under
guardianship, became a mining prospector and sold some mining claims in 2013. Later, in 2015,
he sued to annul the sale, claiming that he was not mentally capacitated at the time of the sale.
While Esguerra may argue that he lacked mental capacity at the time of the sale, it is important to
note that the burden of proof lies with him to establish his lack of capacity. The fact that he was
under guardianship for the purpose of receiving his retirement pay does not automatically
invalidate his capacity to enter into contracts.
Unless Esguerra can provide sufficient evidence to demonstrate that he lacked the mental
capacity to understand the nature and consequences of the sale in 2013, the sale would generally
be considered valid. The mental capacity of a party at the time of entering into a contract is
crucial in determining its validity.
Therefore, the correct answer is d. Valid.
23. The correct answer is:
b. Valid
In this scenario, Rosemarie reluctantly entered into a contract with Corazon for the delivery of
five tables for the price of P15,000, despite having reservations and doubts about the agreement.
For a contract to be considered valid, certain elements must be present, including offer,
acceptance, consideration, legal purpose, and the capacity of the parties to enter into the contract.
In this case, it is implied that all the necessary elements for a valid contract are present. There
was an offer (the contract for the delivery of tables), acceptance (Rosemarie entering into the
contract), consideration (the price of P15,000), and a legal purpose (the exchange of tables for
payment).
While Rosemarie may have had reservations and doubts about the contract, her personal
reluctance or disagreement with the terms does not automatically render the contract void or
voidable. As long as the essential elements of a valid contract are present, the contract is
considered legally binding and enforceable.
Therefore, in this scenario, the correct answer is b. Valid.
24. The correct answer is:
B. Those where the consent is vitiated by mistake, violence, intimidation, undue influence, or
fraud.
In legal terms, a contract is voidable if one of the parties involved had their consent to the
contract vitiated – that is, invalidated or made less effective – by factors such as mistake,
violence, intimidation, undue influence, or fraud. This means that the contract is valid and
enforceable unless and until the party whose consent was vitiated chooses to void it.
Here’s a breakdown of each option:
a. Those undertaken in fraud of creditors when the latter cannot in any manner collect the
claims due them: This type of contract is often considered voidable under the principle of
fraudulent conveyance or fraudulent transfer, which involves transferring property to
another party with the intent to delay, hinder, or defraud creditors. However, the laws
regarding this can vary by jurisdiction.
b. Those where the consent is vitiated by mistake, violence, intimidation, undue influence,
or fraud: As mentioned, these contracts are considered voidable because one party’s
consent to the contract was compromised.
c. Those whose subject is outside the commerce of man: These contracts are generally
considered void, not voidable. Contracts must have a lawful subject matter that can be
bought or sold (i.e., within the “commerce of man”). If the subject matter is outside the
commerce of man, such as something illegal or impossible, the contract is void from the
outset.
d. Those where both parties are incapable of giving consent to a contract: These contracts
are generally considered void, not voidable. If both parties lack the legal capacity to give
consent due to factors like age or mental incapacity, the contract is void from the outset.
Therefore, the correct answer is b. Those where the consent is vitiated by mistake, violence,
intimidation, undue influence, or fraud.
25. The correct answer is:
B. True, True
Statement 1: A simple mistake of account shall give rise to its correction. This statement is true.
In contract law, a mistake of account usually refers to an error in calculations or numerical
figures. When such a mistake is identified, it can be corrected to reflect the accurate figures. Both
parties usually have the right to request a correction of the mistake to ensure the contract is fair
and accurate.
Statement 2: In order that mistake may invalidate consent, it should refer to the substance of the
thing which is the object of the contract. This statement is also true. In contract law, a mistake
that can invalidate consent usually refers to a fundamental misunderstanding about the substance
or essence of the contract’s subject matter. If a party is mistaken about a key aspect of the
contract’s subject matter, this can potentially invalidate their consent to the contract.
Therefore, both Statement 1 and Statement 2 are true, making the correct answer b. True, True.

A. True, False: This choice suggests that Statement 1 is true but Statement 2 is false.
- Statement 1: “A simple mistake of account shall give rise to its correction.” This statement is
true. A simple mistake of account refers to an error in calculations or numerical figures. When
such a mistake is identified, it can be corrected to ensure the accuracy of the account.
- Statement 2: “In order that mistake may invalidate consent, it should refer to the substance of
the thing which is the object of the contract.” This statement is false. To invalidate consent, a
mistake does not necessarily have to refer to the substance of the thing that is the object of the
contract. Mistakes that can invalidate consent include those related to the terms, conditions, or
essential elements of the contract.
B. True, True: This choice is the correct answer.
- Statement 1: “A simple mistake of account shall give rise to its correction.” This statement is
true, as explained earlier. A simple mistake of account can be corrected to ensure accuracy.
- Statement 2: “In order that mistake may invalidate consent, it should refer to the substance of
the thing which is the object of the contract.” This statement is also true. For a mistake to
invalidate consent, it typically needs to refer to a fundamental aspect or substance of the
contract’s subject matter. If the mistake affects the essential terms or substance of the contract, it
may render the consent given by one or both parties as invalid.
C. False, True: This choice suggests that Statement 1 is false but Statement 2 is true.
- Statement 1: “A simple mistake of account shall give rise to its correction.” This statement is
actually true, as explained earlier. A simple mistake of account can be corrected.
- Statement 2: “In order that mistake may invalidate consent, it should refer to the substance of
the thing which is the object of the contract.” This statement is true, as discussed earlier. A
mistake that may invalidate consent usually refers to a fundamental aspect or substance of the
contract’s subject matter.
D. False, False: This choice suggests that both Statement 1 and Statement 2 are false.
- Statement 1: “A simple mistake of account shall give rise to its correction.” This statement is
true, as explained earlier.
- Statement 2: “In order that mistake may invalidate consent, it should refer to the substance of
the thing which is the object of the contract.” This statement is also true, as discussed earlier.
26. Explanation of each option:
a. Eddie sold to Atty. Malaya 200 copies of Transfer and Business Taxes by Ampongan at
P250 each. Atty. Malaya paid P50,000 for the books, but the amount appeared in the
receipt issued was P45,000 only.
In this option, there is a mistake in the receipt amount. Atty. Malaya paid P50,000 for the books,
but the receipt shows a lower amount of P45,000. This mistake in the receipt can be corrected to
reflect the accurate payment amount. The mistake in the receipt does not affect the terms of the
original agreement regarding the sale of the books. Therefore, this contract may not be annulled
on the ground of mistake.
b. ARTS Review Center hired the services of Atty. Dipasipa as a lecturer in Business Law.
His resume, which was made as the basis for hiring him, indicates that he is a CPA-
Lawyer when in fact he is not a CPA, although he graduated with a degree of Bachelor of
Science in Accountancy.
In this option, there is a mistake in the representation of qualifications. Atty. Dipasipa’s resume
falsely indicates that he is a CPA-Lawyer, when in reality, he is not a CPA. This
misrepresentation of qualifications can be considered a mistake that goes to the substance of the
contract. If the misrepresentation of being a CPA-Lawyer was a material factor in hiring Atty.
Dipasipa, the contract may be annulled on the ground of mistake.
c. “A” owns a piece of untitled land which, to his knowledge, measures 15 hectares and
sold it to B for P300,000, with B thinking it really contains 15 hectares.
In this option, there is a mistaken belief about the size of the land. “A” believes that the land
measures 15 hectares, and B also thinks that it contains 15 hectares. However, if both parties
were aware that the land’s actual size was uncertain or untitled, the mistake in the estimation of
the land’s size may not be considered a fundamental mistake that would invalidate the contract.
The mistake does not go to the substance of the land itself. Therefore, this contract may not be
annulled on the ground of mistake.
d. None of the above.
This option suggests that none of the contracts mentioned may be annulled on the ground of
mistake. However, based on the explanations provided above, option a is the correct answer as it
involves a mistake in the receipt amount that can be corrected.