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b.the penalty and damages.c.the penalty and interest.d.only the penalty.31. Rockman and Company published an advertisement in the newspapers which reads as follows “INVITATION TO BID: Construction of the company’s warehouse located at 123 Luzon Street, Sta. Quiteria, Quezon City”. The advertisement also included the specifications of the warehouse to be constructed. three companies submitted their bids: ABC Company, with a bidprice of P4,5000,000.00. After considering the financial capability, reputation and experience of the bidders, the kind and quality of materials to be used and other factors, Rockman and Company, the lowest bidder, now questions the award made by Rockman Company to DEF Company which submitted a higher bid.32. One of the following is not incapable of giving his consent.33. A contract entered into by an incapacited person is:Page 5 of 63
REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK34. Contracts entered into in a state of drunkenness or during hypnotic spell are:a. Valid.b. Voidable.c.rescissible.d. Void.35. A contract entered into by an insane person during a lucid interval is:36. Aside from fraud and undue influence, the following are the vices of consent, except:37. Mistake in three of the following will make a contract voidable. Which onewill not?38. D owes C the following debts: P6, 000.00 due on June 12; P6, 000.00 due on June 18; and P6, 000.00 due on June 20. All debts are unsecured except the debt due on June 20 which is secured by a pledge of D’s diamond ring to C. By agreement, the benefit of the term on 4 debts was granted to C. Assuming that D has P6, 000.00 on June 18 and is ready to pay C, which of the following statements is correct?a.D may apply his payment of P6, 000.00 to any of the debts due on June12, June 15, and June 18 since they are all due as of June 18.