BUSINESS LAW/RFBT

ATTY. MACMOD
2018 Edition
I. Identification Basic Concept/ Principles

__________ 1. Limitations imposed by law on ones capacity to act.

__________ 2. The proposal to make a contract.
__________ 3. The unconditional and unqualified agreement to the offer.
__________ 4. Remedy in equity by which a written instrument is made to conform to the real intentions of
the parties.
__________ 5. False notion of a thing or a fact.
__________ 6. Agreement that do not appear on the face of the contract and do not bind either party.
__________ 7. It occurs when to wrest consent, serious or irresistible force is employed.
__________ 8. When one party is compelled by reasonable or well-grounded fear of a grave evil upon his
person, family or property.
__________ 9. When one takes improper advantage of his power or relationship over another.
__________10. The fear of displeasing a person to whom respect and obedience are due.
__________11. It affects the substance of the agreement and without it the party would not have consented.
__________12. The declaration of a fictitious intent manifested deliberately and by agreement of the parties.
__________13. A remedy to make ineffective a contract validly entered into where there is pecuniary
prejudice or lesion, by restoration of things to their original condition.
__________14. The fact which explains and justifies the creation of an obligation.
__________15. A ground to modify a contract when there is substantial change in facts or conditions
affecting contract.
__________16. The term used to cover various acts such as confirmation, acknowledgement, and ratification
proper.
__________17. Wherein a person’s admission or representation is rendered conclusive upon him and cannot
be disproved against the person relying thereon.
__________18. Wherein there is a full return of a person’s mind to sanity.
__________19. Wherein due diligence is not a defense
__________20. Instances showing possibility of fraud.
TRUE OR FALSE

__________ 1. Statute of frauds is waivable as a defense in a contract.

__________ 2. The right to set up the defense of illegality in void contract can be waived.
__________ 3. Stipulation por autrui is an exception to the rule on consensuality of contracts.
__________ 4. Failure to disclosed facts, when there is a duty to reveal them, as when confidential
relations bind the parties constitutes fraud.
__________ 5. Contracts take effect only between the contracting parties.
__________ 6. Donation of car worth P500K is void if not notarized.
__________ 7. When the real agreement of the parties stated in a contract is void the parties can
ask for reformation of the instrument.
__________ 8. Consummation of a contract is manifested by the offer and acceptance.
__________ 9. Annulment is available only to persons who are obliged principally or subsidiary.
It is not available to third persons
__________10. Cause is the essential or more proximate purpose, which the parties have in view in
entering into the contract. It voids the contract if unlawful like motive.
__________11. When, there having been a meeting of the minds of the parties to a contract, their true intention
is not expressed in reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask
for the reformation of the instrument
__________12. An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either
party before acceptance is conveyed
__________13. Acceptance made by letter or telegram does not bind the offerer except from the time it came to
this knowledge. The contract, in such a case, is presumed to have been entered into in the place where
the offer was made
__________14. Legal life of a contract starts in the conception stage
__________15. Misrepresentation made in good faith is not fraudulent but may constitute error.
__________16. If one party was mistaken and the other acted fraudulently or in such a way that the instrument
does not show their true intention, the former may ask for the annulment of the instrument.
__________17. Mutual promise to marry if orally entered into is unenforceable.
__________18. In the case of an illegal contract where there is a criminal offense, the parties cannot be
prosecuted if they are both in pari-delicto.
__________19. Just like in voidable contracts, rescission is a primary or principal action.
__________20. Observance of certain forms are necessary for validity in contracts under statute of fraud.
__________21. To be valid, unenforceabsle contracts must first be ratified.
__________22. A threat to enforce a legal claim is not a ground that can vitiate consent.
__________23. The liability of a 3rd person who induces another to violate a contract is based on quasi-
contract.
__________24. Most contracts in the Civil Code are formal or solemn contracts.
__________25. There can be no action for the reformation of instrument if the real agreement is void.
__________26. An advertisement containing some terms of the offer in print needs no further negotiation
but an offer by itself.
__________27. Lesion is inadequacy of the cause of a contract.
__________28. The rule on mutuality of contracts provides that contracts takes effect between the parties,
the heirs, assigns, except in cases where the rights and obligations arising from contract are not transmissible
by their nature, by law or by stipulation.
__________29. Husband and wife cannot absolutely sell property to each other.
__________30. Contracts entered by demented persons during lucid interval are perfectly valid
__________31. In voidable contracts, there is no need to ratify the same before they can be considered
valid. In unenforceable contracts, however, ratification is necessary before they can be
considered enforceable.
__________32. A mere expression of opinion can never result to fraud.
__________33. If the contract does not reflect the true intention of the parties, the main action should be
that of annulment.
__________34. A party who has brought an action to enforce an instrument can still later ask for its
reformation.
__________35. A contract, which is direct result of a previous illegal contract, is also void and existent.
__________36. In a face to face transaction cognition theory is applied.
__________37. The statement of a false cause in contracts shall render them void, if it should not be
proved that they were founded upon another cause, which is true and lawful.
__________38. Gross inadequacy of the price does not affect the validity of contracts as a rule.
__________39. Motive is the objective reason whereas cause is the personal reason.
__________40. The interpretation of obscure words or stipulation in a contract shall not favor the party
who caused the obscurity.
MULTIPLE CHOICE
41. S offers to sell his CAR to B for P100,000. B asks him if he would accept P80, 000. Which of the following is
correct?
a. Because of ambiguity, both offers are terminated by operation of law.
b. B’s response is a counter-offer effectively terminating the P100, 000 offer and instigating an offer for P80, 000.
c. B’s response is a rejection of the P100, 000 offer, and there is no offer for P80, 000 because it is too indefinite
d. B’s response is a mere inquiry, the P100, 000 offer by S is still in force.

42. By this principle, the validity and efficacy of the contract cannot be left to the will of one of the contracting parties.
a. Relativity of contract c. Mutuality of contract
b. Obligatoriness of contract d. Freedom of contract

43. This principle means that contracts take effect only upon the contracting parties, their assigns or successors-in-
interest
a. Relativity of contract c. Mutuality of contract
b. Obligatoriness of contract d. Freedom of contract
44. B forced S to sell him (B) a masterpiece painting for P1M.Subsequently, B sold it
to X for P 2M, a good faith purchaser. S is entitled to
a. Rescind the contract with B plus damages
b. Recover the painting from X but no damages
c. Recover damages from B
d. Annul the contract plus damages

45. Which of the following is correct?

a. An action to enforce judicially a natural obligation prescribes in 4 years
b. An action for annulment of contract is imprescriptible
c. An action to declare contract void is not subject to prescription
d. An action for rescission of contract prescribes in five (5) years counted from
the execution of the contract

46. The following contracts should observe the Statute of Frauds, except:
a. Guaranty
b. Lease of personal property longer than one year
c. Representation as to the credit of a third person
d. Lease of real property longer than one year
47. An “invitation to bid”, B proposes the following:
“I will buy the property for P10, 000 if the bid of any other offerrors or bidders shall be considered the
best terms of amount and conditions, I am to equal that offer”.
a. The offer is speculative, because it cannot be considered as against another offer which is certain
b. The offer is considered a counter offer
c. This is a continuing offer which is very certain
d. The advertiser is not bound to accept the higher bidder

48. In the preceding question, which of the following statements is correct?

a. If there is no more offer made, the contract is perfected on the offer of B because he will be
considered as the highest bidder
b. However, if another bidder, X, bidder P15, 000, he will be considered as the highest bidder and the
contract is perfected
c. In letter (b), if X increases his bid for P20, 000, and no more bids equals his bid, the contract is
perfected for P20, 000
d. The advertiser is not bound to accept the higher bidder
49. On July 15, 2017, X entered into a contract with Y. On February 10, 2018 X discovered that fraud was
committed at the time he entered. Remedy of X is to annul when?
a. Within three years from the time of the fraud
b. Within four years from February 10, 2018
c. Within four years from the time A entered into the contract
d. On February 10, 2018

50. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause
which are to constitute the contract. Which of the following constitutes a definite offer?
a. An offer made through an agent
b. Business advertisement of things for sale
c. Advertisement for bidders
d. All of the above
51. Example No. 1: The husband, by intimidation, was able to obtain the consent of his wife, with regards to the
sale of a piece of land to him belonging to the wife for P1 million. The contract is voidable because there was
intimidation.
Example No. 2: In the above example, the right of the wife is to go to court and file a motion for annulment
within four (4) years from the time intimidation ceased.
a. Both are true c. No. 1 is true; No. 2 is false
b. Both are false d. No. 1 is false; No. 2 is true

52. An agreement in restraint of trade.

a. Perfectly valid c. Unenforceable
b. Voidable d. Void

53. Rescission of contract can take place in this case:

a. When the things, which are the object of the contract, are legally in the possession of third persons
who acted in good faith.
b. When he demands rescission can return whatever he may be obliged to restore.
c. When the party seeking resolution can perform only as to part and rescind as to remainder.
d. When the seller cannot return the installment paid to him by the buyer.
54. Which of the following contracts is required to be in writing to be enforceable?
a. An agreement that by its terms is not to be performed within a year from the making thereof.
b. A special promise to answer for the debt, default or miscarriage of another.
c. An agreement made in consideration of marriage, other than a mutual promise to marry.
d. All of the above.
55. S makes an offer to B on January 1, 2018. B makes known his acceptance in a letter sent on January 2,
and received by S on January 10. Meantime, on January 5, S becomes insane.
a. The contract is voidable because one party is insane
b. There is already a meeting of minds, the contract is perfected
c. The contract is not binding because there is no meeting of minds
d. Contract is unenforceable.
56. In the preceding number S is perfectly sane but only a minor at the time the acceptance is communicated
to him.
a. There is no meeting of minds between the parties, unless ratified by the guardian of S.
b. The contract is not binding because the party is incapacitated
c. The contract is binding between the parties (but voidable)
d. Contract is valid.
57. In a contract, as written, D promises to pay C P10, 000 on September 15, 2014. The
consideration received by D is not stated in the contract. Decide.
a. The contract is valid because the cause is always presumed to exist.
b. The contract is valid so long as it in writing
c. The contract is valid because cause is not essential to a contract
d. The contract is void because the cause is not stated.

58. The stage of “conception” of a contract is:

a. When the contract is fully executed
b. When the parties come to an agreement
c. When negotiations are in progress
d. When there is a meeting of the parties’ minds.

59. Which of the following contracts is rescissible?

a. Those where one of the parties is incapable of giving consent to a contract
b. Those where both parties are incapable of giving consent to a contract
c. Those which are entered into by guardians whenever the wards whom they represent
suffer a lesion of more than ¼ of the value of the object of the contract.
d. Those which are absolutely simulated or fictitious.
60. Contracts that cannot be sued upon unless ratified:
a. Voidable c. Rescissible
b. Unenforceable d. Void

61. Contracts of sales and partnerships are:

a. Onerous c. Onerous and Gratuitous
b. Gratuitous d. Aleatory

62. Who is liable for the loss of subject matter by fortuitous event?
a. Creditor c. Both creditor and debtor
b. Debtor d. None of them

63. These persons are bound by contracts:

a. Contracting parties c. Heirs
b. Assigns or Assign d. All of them
64. L entered into a contract of lease with X. T, the clerk of L, typed the document. Due to T’s
negligence, the document made was that of sale instead of lease.
a. The remedy is annulment
b. Parties may go to court for interpretation
c. Parties may enforce their right because it is enforceable
d. Remedy is reformation
65. In a contract of sale executed by S and B, it appears S sold his motor vehicle to B and B
bought it for P10, 000. It turned out however, S has three motor vehicles. Gallant valued P80,
000: Hi-Ace van valued P70, 000; and a Jeep valued P60, 000. Which of the following is `
correct as remedy?
a. The contract shall be reformed because there was mistake
b. The parties can ask for interpretation because the word Motor vehicle is ambiguous.
c. The parties can ask for annulment of the contract
d. The parties can rescind the contract.
66. Which of the following can be considered as feature of the void contract?
a. Subject to ratification
b. They exist
c. Action or defense for nullity is subject to prescription
d. It is imprescriptible as a defense
67. Statement No.1: The inadequacy of cause or consideration may void a contract.
Statement No. 2: Simulated contracts are valid but voidable.

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true

68. S entered into a contract with B by threatening B that if B does not agree to make the contract, S
would publish defamatory matter concerning B’s wife.
a. The contract is valid because the defamatory matter to be published does not relate to B, the
contracting party.
b. The contract is voidable because such publication when carried out whether true or not will
cause serious harm to B and his wife
c. The contract is unenforceable but B is entitled to damages the moment the publication is
made.
d. Contract is void.
69. Statement No.1: If the cause is not stated in the contract it is presumed that it is unlawful.
Statement No. 2: The action for rescission is subsidiary; it cannot be instituted except when there is no
other legal means to obtain reparation for damages suffered.

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true

70. Because of the intimidation employed by X, a third person, S sold his car to B. This contract is:
a. Void c. Unenforceable
b. Voidable d. Rescissible

71. B called C by the telephone to guaranty the debt of D to C. The contract between B and C is:
a. Unenforceable c. Rescissible
b. Voidable d. Annullable
72. Mr. A rendered accounting services in return for legal services o Mr B is
a. Du ut des contract c. Facio ut des contract
b. Du ut facias contract d. Facio ut facias contract
73. Contract which has no effect at all and cannot be ratified is a/an:

a. Unenforceable c. Voidable
b. Void contract d. All of them

74. Statute of Frauds is applicable to

a. Partially executed
b. Oral contract of loan when the amount involved is less than P500
c. Contract not to be performed within a year from the making thereof
d. All of the above.

75. An incidental element of a contract

a. Implied warranty
b. Payment of interest in a loan
c. Delivery of the object in contract of pledge
d. All of the above
76. Statement No. 1: A threat to enforce one’s claim through competent authority, if the claim is just or legal
does not vitiate consent.
Statement No.2: Contracts entered into during a lucid interval are valid. Contracts agreed into a state of
drunkenness or during a hypnotic spell are binding.

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true

77. In three of the following defective contracts, ratification cleanses the defects. Which is the exception?

a. Both parties are incapable of giving consent

b. Sale of immovable property or interest orally entered into
c. Sale of piece of land thru an agent the authority is oral
d. Contracts entered into by a person who has been given no authority

78. Valid until annulled unless there has been ratification

a. Rescissible contract c. Voidable contract

b. Inexistence contract d. None of the above
79. Example 1 – S sold to B in private instrument his land. Later, B wanted to have the sale
registered, but registration requires a public instrument. In here, B may compel S to
execute the needed public instrument.
Example 2 – S sold to B orally his specific land. After B paid S the price of the sale, he
wants to register the land in his name but he needed a public instrument of sale. In here
B may compel S to execute the needed public instrument.

a. Both examples are false c. Only 2 is true

b. Only 1 is true d. Both examples are true.

80. Statement No.1: Ratification of voidable contract is necessary for its validity.
Statement No.2: Unauthorized contracts are annullable contracts.

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true

81. S was forced by X to sign a contract with B for the sale of specific property for P10, 000.
C a creditor of X is prejudiced by the contract. What can S do?
a. S may ask for annulment of the contract
b. S may ask for rescission of the contract
c. S may ask C to declare the contract avoided
d. C may ask for the annulment of the contract.
82. In the preceding number, what can C do?
a. C may ask for rescission of the contract
b. C may ask for the reformation
c. C may ask S to declare the contract voided
d. C may ask for the annulment of the contract.
83. Which of the following contracts is voidable?
a. Those where both parties are incapable of giving consent to a contract.
b. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims
due to them.
c. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud
d. Those whose object is outside the commerce of men
84. Statement No. 1: A stipulation in a contract of lease, which provides that the tenant shall have the right to
continue in possession of the leased premises so long as he pays monthly rentals thereon, is a valid
stipulation.
Statement No. 2: The seller sold to a minor some necessaries in the amount of P600. The goods were
delivered to the minor who, in turn paid the purchase price therefore. The contract is unenforceable.
a. Both are true c. No.1 is true; No. 2 is false
b. Both are false d. No.1 is false; No. 2 is true
85. S and B orally agree that S would sell and B wound buy S’s radio for P400, two years from the
date of the agreement. At the end of the two-year period, S refused to deliver the radio although B
was willing to pay.

a. B can compel S to deliver because B is willing to pay the price.

b. The contract falls under the Statue of Frauds, therefore unenforceable.
c. No Statue of Frauds because the price is less than P500.
d. The object is movable, oral contract is enforceable.

86. This kind of defective contract refers to that contract which is validly agreed upon because all the
essential elements exits, but courts can nullify it when there is damage or prejudice to one of the
parties or to a third person. Its enforcement would cause injustice by reason of some external
facts.

a. Voidable contract c. Rescissible Contract

b. Void or Inexistence Contract d. Unenforceable Contract

87. Must be in writing to be enforceable:

a. Lease of land for 12 months c. Both of a and b

b. Lease of car for 18 months d. None of a and b
88. S, a minor, owns a specific property valued P50, 000. B, Capacitated, by means of fraud
induced S to sell his property to him (B) for P10, 000 which S did so. The contract is in writing.

a. The contract is binding from the start

b. The contract remains unenforceable because it falls under the Statue of Frauds.
c. The contract is rescissible because the ward suffered lesion by more then one-fourth
of the value.
d. The contract is void.

89. A contract entered into in violation of right of first refusal is:

a. Rescissible d. Void
b. Voidable e. None of the above
c. Unenforceable

90. A, a bachelor lawyer, raped W twice. Upon learning this, “F” the father of W, was able to force A
to marry W under pain of being sued in court and disbarred from the practice of his law profession.
Which statement is correct?
a. The marriage may be annulled on the ground of force or violence
b. The marriage may be annulled on the ground of threat or intimidation
c. The defective marriage, may, however, be ratified
d. There was no defect, the marriage was perfectly valid
91. S owns an oil painting. Being in need of money, S sold the painting to B for P1,
000. After the sale it was discovered that the painting was valuable and worth P5, 000.

a. S may rescind the contract on ground of lesion or inadequacy of cause

b. S may rescind the contract on ground of fraud
c. S may annul the contract on the ground of error
d. B is entitled to the benefit of the contract because it is valid and binding

92. Statement No. 1: An agreement which, by its terms and conditions, is to be

performed within a year from the making thereof is unenforceable even if entered
into orally.

Statement No. 2: A contract involving fraud (dolo incidente) is voidable.

a. Both are true c. No.1 is true; No. 2 is false
b. Both are false d. No.1 is false; No. 2 is true

93. Type of defective contract that creates no rights and impose no obligation, but are
susceptible of ratification.
a. Voidable contracts c. Rescissible Contracts
b. Unenforceable Contracts d. Void Contracts
94. D forced C to lend him P10, 000. The promissory note is in writing.
a. The contract is rescissible because the contract is fraudulent
b. The contract is void
c. C cannot demand payment from D because the contract is unenforceable
d. Contract remains to be valid

95. Which of the following contract is not valid?

a. Mutual promise to marry entered into orally
b. Sale of immovable property orally entered into
c. One of the parties in a contract is incapable of giving consent
d. Donations between husband and wife

96. Three of the following are void contracts. Which is the exception?
a. Contracts where the cause is immoral
b. Contracts to prevent a known supporter of a political rival from voting for his candidate for a
valuable consideration
c. Contracts with a valid consideration but with unlawful motives
d. Absolutely simulated contracts
97. Contract with a false cause is

a. Voidable c. Unenforceable
b. Void d. All of the above

98. Statement No.1: The action for annulment on the ground of fraud shall be brought within 4
years from the time of the perfection of contract.
Statement No.2: If a valid contract is novated to a void contract, both contracts are
considered void.

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true

99. Statement No.1: Advertisements for bidders are simply invitations to make proposals, and
the advertiser is not bound to accept the highest or lowest bidder, unless the contrary
appears.
Statement No.2: Accidental elements of a contract are those agreed upon by the parties,
and cannot exist without being stipulated.

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true
100. A conferment of a direct benefit in a contract between two persons in favor of a third
person who must accept such benefit before the same is withdrawn is known as:
a. Policitacion c. donation propter nuptias
b. Stipulation por autrui d. Counter-offer

101. The guardian of an insane person sells a house and a lot belonging to the latter
valued at P100, 000 to B, buyer for P74, 000 with the approval of the court. The
contract is:
a. Valid d. Unenforceable
b. Rescissible e. Void
c. Voidable
102. The following, except one, are the characteristics of void or inexistent contract. Which
is the exception
a. The defense of illegality of the contract is available to third person whose
interests are not directly affected
b. They are not subject to ratification
c. The right to raise defense of illegality cannot be waived
d. The action or defense for declaration of their nullity or inexistence of the
contract does not prescribe
10. A intimidated B to marry his daughter. After a year, B would like to file an action for
annulment but could not do so because A was around to intimidate him. The marriage
contract is

a. Rescissible c. Void
b. Voidable d. Unenforceable

104. Which of the following contract is enforceable even if not reduced in writing.

a. Lease of car for 2 years

b. Representation as to the credit of a third person
c. Lease of immovable for a period longer than one year.
d. Agreement for the sale of immovable property.

105. Simulation of Contract - Absolute or relative. Relative when:

a. Parties not bound at all

b. The contract is void
c. The parties conceal their true agreement
d. None of the above
106. Which of the following instruments is not subject to reformation?

a. Simple donations inter vivos wherein no condition imposed

b. Wills
c. When the real agreement is void
d. All of the above

107. Essential requisites of a contract:

a. Consent c. Subject
b. Cause d. All of them

108. The offeror need not know the acceptance by the offeree is the theory of:

a. Cognition c. Expedition
b. Manifestation d. B or C
109. One of the stipulations contained in the contract between M Company and its
employees is that the company shall pay a bonus to employees of the company who shall
continue its employment for at least 2 consecutive years, unless he quits or is discharged
before the expiration of the period of 2 years. X, an employee of the company was
discharged without just cause one week before the completion of the two-year period:

a. X is not entitled to the bonus because his discharge was in accordance with the
contract.
b. X is not entitled to the bonus, because the employer’s right to terminate is superior
than the right of the employee to be employed.
c. X is entitled to the bonus whether the discharge is with or without cause.
d. X is entitled to the bonus because the debtor company has voluntarily prevented
the happening of the condition.
110. Example No.1- W 16 years old, sold his house valued at P1 M for P50, 000 or a lesion by more
than one-fourth of the value of the said house.
Example No.2- A sold his land orally to B. The contracts are:

a. Both contracts are unenforceable

b. No. 1 is rescissible; while No.2 is unenforceable
c. 1st is voidable; while 2nd is unenforceable
d. Both contracts are binding
111. Statement No.1 Existing contracts can be changed by a new tax law if fair and equitable.
Statement No.2: Existing contracts can be modified by a new law under Police Power.

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true

112. Statement No.1: Validable contracts can be voided within the period allowed by law.
Statement No.2: There is undue influence if insidious words or machinations were employed by a party on
the other just to obtain the latter’s consent, without which the latter would not have entered into the
contract.

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true
113. B1 Company bought out a competitor, B2 Corporation, with a stipulation that B2 Corporation should not
thereafter engage in any business in the Philippines unless consented to and approved by B1 Company.

a. The stipulation is defective but subject to ratification.

b. The stipulation is valid because the parties are free to enter into any stipulation, terms and
conditions such as this one.
c. The stipulation is unenforceable as there was no showing that the sale as done in writing
d. The stipulation is void because it is contrary to public policy.
 114. 1st S. Place and modes of payment are example of natural elements
2nd S. Agency, partnership and sale are example of preparatory & consensual contracts

a. Both are true c. No.1 is true; No. 2 is false

b. Both are false d. No.1 is false; No. 2 is true

115. All are void contracts except:

a. Those whose object is outside the commerce of men.

b. Those which are relatively simulated or fictitious.
c. Those with unlawful consideration.
d. Those which contemplate an impossible service.

“In the province of the mind, the mind cannot distinguish what is reality from what is vividly imagined.’”
-Being Happy by Matthew Andrews