Philippine Bar review · Question

Practice question: Void and Inexistent Contracts

Multiple Choice Medium

Practice question

Two parties execute an absolutely simulated sale: neither intends any sale or transfer, and the document exists only as a fictitious appearance. Which classification follows Articles 1346 and 1409?
  1. A binding sale that can be annulled only for minority.
  2. Void from the beginning for absolute simulation.
  3. Unenforceable solely for lack of a signed memorandum despite both signatures.
  4. Necessarily a valid donation.
  5. A contract that becomes valid automatically after performance of an unrelated transaction.

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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