Philippine Bar review · Question

Practice question: Void and Inexistent Contracts

Multiple Choice Hard

Practice question

A single instrument contains a separable lawful equipment sale and an illegal covenant. The provisions are divisible, the lawful sale can stand independently, and no other rule makes it unlawful. One party insists every lawful term must fail solely because an illegal term appears in the same instrument. What does Article 1420 permit?
  1. Enforcement of the illegal covenant if the sale is profitable.
  2. Ratification of every illegal term by silence.
  3. Automatic nullity of every unrelated transaction of the parties.
  4. Enforcement of the legal terms when the divisible illegal terms can be separated.
  5. The court must replace the illegal covenant with any term the drafter later prefers.

Legal references

  • https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 1346,1352,1409–1412 and 1416,1420–1422.

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