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SAMPLE QUESTIONS

I. MULTIPLE CHOICE. Encircle the letter of the BEST answer. STRICTLY NO ALTERATIONS.

1. This source of obligation is not presumed:


a. Contract
b. Quasi-contract
c. Law
d. Quasi delict

2. Which of the following is not an obligation arising from law?


a. Duty of the employer to compensate the employee if the debtors dies or is injured
b. Obligation of the taxpayer to pay income tax
c. Duty of the employer to pay 14th month pay
d. Duty of the husband and wife to support each other

3. Whoever voluntarily takes charge of the agency or management of the business or property of another, without any power
from the latter, is obliged to continue the same until the termination of the affair and its incidents, or to require the person
concerned to substitute him, if the owner is in a position to do so.
a. Express agency
b. Implied agency
c. Negotiorumgestio
d. Quasi contract

4. The employer shall be liable to compensate his employee for a personal injury sustained by him from an accident under
workmen compensation act, if the accident arises from the following, except
a. It arises out of the employment
b. It is stipulated in the contract of employment
c. It happens in the course of the employment
d. It is not caused by the notorious negligence of the employee

5. It is an action for unjust enrichment


a. Accion pauliana
b. Accion subrogatoria
c. Action de in rem verso
d. Accion quanti minoris

6. The following are the civil liability under the Revised Penal Code, except
a. Restitution
b. Reparation of the damage caused
c. Indemnification for consequential damages
d. Imprisonment

7. Moral damages may be recovered in the following and analogous cases


a. A criminal offense resulting in physical injuries
b. Quasi-delicts causing physical injuries
c. Breach of contract resulting in physical injuries
d. Seduction, abduction, rape or other lascivious acts

8. Proof of pecuniary loss is required for these damages


a. Actual damages
b. Moral damages
c. Temperate damages
d. Exemplary damages

9. The prescriptive period of an action for written contracts is


a. Ten (10) years
b. Six (6) years
c. Four (4) years
d. One (1) year
10. The prescriptive period of an action for oral contracts is
a. Ten (10) years
b. Six (6) years
c. Four (4) years
d. One (1) year

11. The following are characteristics of insurance contracts, except


a. It is a contract of adhesion
b. It is aleatory
c. It is nominate
d. It is essentially gratuitous

12. Which of the following is not correct in alternative obligation?


a. The right of choice belongs to the debtor unless expressly granted to the creditor
b. There is only one objet agreed upon, but the debtor may render another in substitution
c. If the right of choice belongs to the debtor, the latter is not liable for damages if one of the alternative object was loss even
through the fault of the debtor
d. If the right of choice belongs to the debtor, the latter is liable for the value of the last object that was lost through his fault

13. A and B are debtors of C for P100,000. A’s consent was obtained by C through fraud.
a. C can collect the entire P100,000 from B
b. B is liable to C for his share of P50,000
c. C can collect the entire P100,000 from B but the latter can recover from A P50,000
d. A is liable only to C for P50,000 because he can interpose his defense of fraud

14. Which of the following is not a mode of extinguishing an obligation?


a. Loss of a specific thing
b. Condonation
c. Confusion
d. Quasi delict

15. Which of the following is not correct in an obligation with a period?


a. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a
period
b. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of both the
creditor and the debtor
c. The court as a rule is authorized to fix the period even when the period is not intended.
d. The debtor lose the right to make use of the period, when the debtor after the obligation has been contracted, he becomes
insolvent, unless he gives a guaranty or security

16. D and C agreed that prior to the delivery of D’s only dog named Boyet, D should keep it in the doghouse, feed it four times a
day, give it a bath six times a week and make it stroll every morning for at least two hours. D should therefore, take care of
Boyet:
a. With ordinary care
b. According to the stipulation
c. With extraordinary diligence of a good father of a family
d. With the proper diligence of a good father of a family

17. When the obligation modified its object and also the principal conditions
a. There is real novation
b. There is personal novation
c. There is mixed novation
d. There is delegacion

18. When the penalty takes the place of damages


a. Punitive penal clause
b. Subsidiary penal clause
c. Joint penal clause
d. Compensatory penal clause

19. A, B and C are indebted to X for P900,000. In this case


a. X may demand from A or B or C P900,000
b. The obligation of A, B and C to X is solidary
c. X cannot lawfully refuse to accept payment by A for P900,000
d. The obligation of A, B and C to X is joint

20. Annulment is not a proper remedy under the following except:


a. Simple mistake of account
b. Mutual error as to the legal effect of an agreement when the real purpose of the parties is frustrated
c. When the true intention of the parties is not expressed in the instrument by reason of fraud
d. Mistake as to the identity which is not the principal cause of the contract

21. Amazed by the skill of X who can paint portraits using brushes inserted in his right armpit, Y entered into a contract with the
former to have his own portrait done and P50,000 as full payment therefore. After he has started the portrait but before its
completion, X was sideswiped by a speeding car while he was drunk and walking beside the way causing the doctors to have his
right arm amputated. In this case, what is the remedy of Y?
a. Specific performance by compelling X to go on painting Y’s portrait
b. Substitute performance by allowing a third person to do his portrait with expenses therefore charged to X
c. Nothing, as the service became impossible by reason of an act independent of the will of the debtor
d. Equivalent performance in terms of damages

22. Which of the following obligation is void


a. Obligation subject to resolutory condition and the fulfillment of the condition is dependent upon the sole will of the debtor
b. Obligation subject to suspensive condition and the fulfillment of the condition is dependent upon the sole will of the debtor
c. Obligation subject to suspensive condition and the fulfillment of the condition is dependent upon the sole will of the
creditor
d. Obligation subject to resolutory condition and the fulfillment of the condition is dependent upon the sole will of the
creditor

23. Which of the following is not correct?


a. When the debtor binds himself to pay when his means permit him to do so, the obligation is conditional
b. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to
the parties, is demandable at once
c. Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of the
happening of the event
d. In conditional obligations, the acquisition of the rights, as well as the extinguishment or loss of those already acquired, shall
depend upon the happening of the event which constitutes the condition

24. An obligation wherein only one prestation is due


a. Individual obligation
b. Alternative obligation
c. Facultative obligation
d. Simple obligation

25. Which of the following is correct in alternative obligations?


a. In alternative obligation, the right of choice belongs to the creditor
b. In alternative obligation, only one prestation is due but the debtor may substitute
c. In alternative obligation, if one of the alternative object is loss by a fortuitous event, the obligation is extinguished
d. In alternative obligation, the debtor shall have no right ot choose those prestations which are impossible, unlawful or which
could not have been the object of the obligation

26. D owes C the amount of P 2,800 payable on June 30, 2018. On June 8, 2018, C purchased some grocery items from the store of
D on credit, payable on June 30, 2018. On the maturity date, their respective obligations are extinguished by:
a. Dation in payment
b. Novation
c. Compensation
d. Confusion or merger of rights
27. The concurrence of two or more creditors or of two or more debtors in one and the same obligation does not imply that each
one of the former has a right to demand, or that each one of the latter is bound to render, entire compliance with the
prestation. Which of the following term implies a joint obligation?
a. Juntos o separademente
b. Mancomunada
c. In solidum
d. Joint and severally

28. Which of the following statement is not correct


a. A solidary creditor can assign his rights without the consent of the others
b. Each one of the solidary creditors may do whatever may be useful to the others, but not anything which may be prejudicial
to the latter
c. The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously
d. Solidarity may exist although the creditors and the debtors may not be bound in the same manner and by the same periods
and conditions

29. Don agreed in writing to give all his CPA review materials to Chris if he passes the October 2018 CPA Board Exams. In the
October 2018 CPA Board Exams, Don took the examination on the first Sunday, but he did not report any more in the
succeeding examinations. Can Chris compel Don to give his CPA review materials to him?
a. No, because the condition was not fulfilled
b. No, because the condition in this case will never happen
c. Yes, because the condition in this case shall be deemed fulfilled
d. Yes, because their agreement is in writing and it is valid and enforceable

30. Which of the following statements is not correct?


a. The obligations to give definite things and those which are not susceptible of partial performance shall be deemed to be
indivisible
b. When the obligation has for its object the execution of a certain number of days of work, the accomplishment of work my
metrical units or analogous things which by their nature are susceptible of partial performance, it shall be divisible
c. When the object or service may be physically divisible, an obligation is always divisible
d. A joint indivisible obligation gives rise to indemnity for damages from the time anyone of the debtors does not comply with
his undertaking

31. The following contract must be in a public instrument for purposes of convenience. Which is the exception?
a. Repudiation of hereditary rights
b. Power to administer property
c. Cession of conjugal partnership of gain
d. Donation of real property

32. The following are all factors vitiating consent, except


a. Mistake
b. Dolo incidente
c. Intimidation
d. Undue influence

33. S orally sold his house to B for P5,000,000 where B initially paid P50,000. After paying the balance, B now seeks to register the
lot in his name, but the Register of Deeds refuses to do so. In this case:
a. The transaction involving the oral sale of a house and lot is null and void
b. The contract between S and B is unenforceable under the Statute of Frauds
c. The orals sale of the house and lot although unenforceable under the Statute of Frauds has been ratified by the receipt of
the consideration, and therefore, B can compel S to execute the deed of sale in a public document
d. If S does not want to execute the public document, he can rescind or cancel his agreement with B

34. A bought a parcel of land from B on installment from B on installment. When the first installment fell due, A did not pay. His
defense was that he did not have available money, and therefore he pleaded impossibility of performance
a. A’s obligation is extinguished because A has no available money
b. A’s obligation is extinguished because of impossibility of performance
c. A is liable. A mere pecuniary inability to fulfill an engagement does not discharge the obligation of the contract
d. A is liable because the obligation is to pay specific money

35. X orally agreed to sell his cellphone worth P8,000 to Y for only P3,500 payable on September 30, 2018. Y initially paid P400 and
they agreed that the balance shall be payable upon the delivery of the cellphone on September 30, 2018. The oral contract
between them is:
a. Unenforceable because the value of the object is more than P500
b. Valid because the price has been partially paid
c. Rescissible because the price is very low or inadequate
d. None of the above is correct

36. A orally offered to sell his two-hectare rice land to B for P10 million. The offer was orally accepted. By agreement, the land was
to be delivered (through execution of a notarized Deed of Sale) and the price was to be paid exactly one-month from their oral
agreement. Which statement is most accurate?
a. If A refuses to deliver the land on the agreed date despite payment by B, the latter may not successfully sue A because the
contract is oral
b. If A refused to deliver the land, B may successfully sue for fulfillment of the obligation even if he has not tendered payment
of the purchase price
c. The contract between the parties is rescissible
d. The contract between the parties is subject to ratification by the parties

37. Which phrase most accurately completes the statement – “Any third person who induces another to violate his contract…”
a. Shall be liable for damages only if he is a party to the same contract
b. Shall be liable for damages to the other contracting parties
c. Shall not be liable for damages to the other contracting parties
d. Shall not be liable for damages if the parties are in pari delicto

38. Which of these is a formal contract


a. Donation of real property
b. A partnership where there is contributed real property
c. All of the above
d. None of the above

39. Which of the following is proof of the perfection of a contract of sale?


a. Option
b. Option money
c. Earnest money
d. All of them

40. Manny, 16 years old student sold the car of Tristan his guardian without the latter’s authority. The property at the time of sale
has a fair market value of P500,000 but Manny sold it for only for P370,000. The contract in this case is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void

41. Which of the following contracts is not void ab initio


a. That whose object is outside the commerce of men
b. That whose object did not exist at the time of transaction
c. That which contemplates an impossible service
d. That which is undertaken is fraud of creditors

42. A mortgaged his car to B to secure his loan amounting to P150,000. Due to the negligence of the typist, the document signed by
A and B shows that the car of A was sold to B for P140,000. Which of the following statements is correct?
a. The contract of sale between A and B is voidable because there is a mistake
b. The contract of sale between A and B is relatively simulated
c. The contract of sale between A and B may be reformed
d. The contract of sale between A and B is rescissble because of the damage suffered by A

43. Which of the following contract is essentially gratuitous?


I. Commodatum
II. Precarium
III. Deposit
IV. Mutuum
a. I and II
b. I and III
c. I, II and III
d. All of the above

44. Which of the following are real contracts?


I. Commodatum
II. Precarium
III. Deposit
IV. Mutuum
a. I and II
b. I and III
c. I, II and III
d. All of the above

45. Paul entered into a written agreement to sell a parcel of land to Steve. At the time the agreement was executed, Paul had
consumed alcoholic beverages. Paul’s ability to understand the nature and terms of the contract was not impaired. Steve did
not believe that Paul was intoxicated. The consent is:
a. Void as a matter of law
b. Legally binding on both parties
c. Voidable at Paul’s option
d. Voidable at Steve’s option

46. M is a minor who owns a house and lot valued at P1 Million. G is the guardian who sold the house and lot to B for only P600,000
but with the approval of the court. The contract between G and B is
a. Valid
b. Resicissible
c. Unenforceable
d. Voidable

47. 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. Stipulation por autrui
b. Policitacion
c. Pactum reservati dominii
d. Counter offer

48. The statue of frauds


a. Prevents the use of oral evidence to contradict the terms of a written contract
b. Applies to all contracts having consideration valued at P500 or more
c. Requires the independent promise to pay the debt of another to be in writing
d. Applies to all real estate leases

49. Which of these contracts is not subject to ratification?


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

50. D asked C if the latter can grant him loan of P50,000 payable in one year plus 12% interest and C nodded his head. The contract
of loan is in the stage of
a. Preparation
b. Perfection
c. Consummation
d. None of the above
51. Arnold mortgaged his Truch to Benito to secure his loan amounting to P400,000. Due to the negligence of the typist, the
document signed by Arnold and Benito shows that the truck of Arnold was sold to Benito for P350,000. Which of the following
statements is correct?
a. The contract of sale between Arnold and Benito is voidable because of mistake
b. The contract of sale between Arnold and Benito is relatively simulated
c. The contract of sale between Arnold and Benito is rescissible because of the damage suffered by Arnold
d. The contract of sale between Arnold and Benito may be reformed

52. Which of the following is not correct about donation


a. The donation of a movable may be made orally or in writing
b. An oral donation requires the simultaneous delivery of the thing or of the document representing the right donated
c. If the value of the personal property donated exceeds five thousand pesos, the donation and acceptance shall be made in
writing, otherwise, the donation shall be voidable
d. In order that the donation of an immovable may be valid, the donation as well as the acceptance must be in a public
instrument, otherwise the donation is void

53. This is not part of the damages in case of breach of the warranty in case of eviction
a. Return the price of the thing sold
b. Income of fruits which the buyer may have been compelled to pay
c. Cost of the litigation
d. Expenses of the contract and its registration if the buyer paid for them

54. Which of the following causes extinguishes a contract of sale


I. Loss of the object
II. Novation of the principal condition of the contract
III. Legal redemption
IV. Condonation of the price by the seller
a. I, II and IV
b. I, II and III
c. I, III and IV
d. All of the above

55. The redhibitory action base on the faults or defects of animals must be brought within
a. Forty days from the date of their delivery to the vendee
b. Forty days from the date of the perfection of the contract
c. Thirty days from the date of their delivery to the vendee
d. Thirty days from the date of the perfection of the contract

56. On January 1, 2018, S sold to B a parcel of land. It was agreed that S could redeem the land until January 1, 2030. On February
14, 2018, B decided to register the land in his name with annotation of the right of repurchase by S. In this case(disregared leap
years)
a. S is allowed to redeem the land until January 1, 2028
b. S is allowed to redeem the land until February 14, 2028
c. S is allowed to redeem the land until January 1, 2030
d. S is allowed to redeem the land until February 14, 2030

57. S sold his CPA review materials to B and B paid the purchase price. They agreed that S will continue to use those review
materials until the end of the CPA Board Examinations. The object of the sale is considered delivered to B through
a. Traditio symbolica
b. Traditio constitutum possessorium
c. Traditio longa manu
d. Traditio brevi manu

58. In a contract entered into between Jude Electric International Company and Lileth Corporation referred here as the distributor,
the former consigned to the latter electric fan to be sold by the Distributor. Prior to such sale, Jude Electric International would
remain the owner of the electric fan. However, the contract expressly stated that Lileth Corporation was not being made as
agent, and could not bind the company. Between the two entities, there is
a. Contract of sale
b. Contract of agency to sell
c. Contract of partnership
d. Trust agreement

59. A thing pledged


a. Even if stipulated, cannot be appropriated if debt is not paid
b. Is indivisible even among the successors in interes
c. May guarantee the debts of another person
d. All of the above

60. Dean borrowed from Bean P20,000. Dean offered his ring by way of pledge. It was expressly stipulated that upon non-payment
of the debt on time, the ring would belong to Bean. This forfeiture clause, which has traditionally not been allowed is called
a. Pacto de retro
b. Pacto comisorio
c. Constitutum possessorium
d. Commodatum

61. What is the effect if the proceeds in an extra-judicial foreclosure sale is not sufficient to pay for the obligation?
a. The mortgagee can claim for deficiency judgement from the debtor
b. The mortgagee can claim for deficiency judgement from the mortgagor even though it is a third party mortgage
c. The mortgagee has no more recourse or claim against the debtor
d. The mortgagee cannot claim for deficiency judgement from the debtor because it’s an extrajudicial foreclosure.

62. D mortgaged his house and lot to C as security for the loan amounting to P1Million. Which of the following statements is
correct?
a. C may automatically be the owner of the mortgaged house and lot upon non-payment of the loan, if that is stipulated in
their written contract
b. If there is a stipulation prohibiting D to sell his house and lot while the loan remains unpaid, D cannot sell the mortgaged
property before the maturity date of the loan
c. If the mortgaged property is foreclosed but the proceeds of the sale is less than the amount of the loan, C has no more right
to demand payment of the balance from D
d. If the written contract of mortgage is not registered at the Office of the Registry of Deeds, the real estate mortgage is still
valid between D and C

63. D pledged his diamond ring to C as security for his loan amounting to P10,000. One month after the maturity date, C foreclosed
the thing pledged because D failed to pay his loan. The ring was sold t the foreclosure sale for P12,000. Which of the following is
not correct?
a. C is not entitled to the excess of P2,000
b. D is entitled to the excess of P2,000
c. D is entitled to the excess of P2,000 only if it is stipulated
d. C is entitled to the excess of P2,000 only if it is stipulated

64. Which of the following conditions must be met for an implied warranty of fitness for a particular purpose to arise in connection
with a sale of goods?
I. The warranty must be in writing
II. The seller must know that the buyer was relying on the seller in selecting the goods.
a. I only
b. II only
c. All of the above
d. None of the above

65. Which of the following cannot be the subject of a contract of sale


a. Future property
b. Transmissible rights
c. Lawful services
d. Present property

66. No one gives what he does not have


a. Pak ganern pak ganern ganern
b. Nemo dat quod non habet
c. Res ipsa loquitor
d. Pactum commissorium

67. If the thing is lost after perfection and after delivery, who suffers the loss?
a. The vendor
b. The vendee
c. Distributed equally between the vendor and the vendee
d. Either the vendor or the vendee depending upon the circumstances of each particular case

68. Which of the following is not correct about price in a contract of sale
a. In a contract of sale, if the price is simulated, the sale is void
b. Gross inadequacy of price as a rule affect a contract of sale
c. The fixing of the price can never be left to the discretion of the contracting parties
d. In order that the price may be considered certain, it shall be sufficient that it be so with reference to another thing certain

69. The following contracts are void, except


a. A contract of sale involving falsified lottery tickets
b. A contract of sale between husband and wife involving absolute community of property
c. Sale involving things having potential existence
d. Sale of future inheritance

70. The following are constructive delivery, except


a. When the sale is made through a public instrument
b. When the thing sold is placed in the control and possession of the vendee
c. The delivery of the keys of the place where it is stored or kept
d. Tradition constitutum possessorium

71. The contract shall be presumed to be an equitable mortgage in any of the following cases, except
a. When the price of a sale with right to repurchase is unusually inadequate
b. When the vendor remains in possession as a lessee or otherwise
c. When upon or after the expiration of the right to repurchase another instrument extending the period of redemption or
granting a new period is executed
d. When the vendee binds himself to pay the taxes on the things sold

72. The following are the modes of extinguishment of a contract of sales, except
a. Legal redemption
b. Conventional redemption
c. Cancellation of sale
d. Death of the vendor

73. Which of the following cannot be the object of Mortgage?


a. Apartment to be acquired by the Mortgagor
b. Land owned by the mortgagor
c. Car owned by the mortgagor
d. Building owned by the mortgagor but under lease contract

74. Amador obtained a loan of P300,000 from Basilio payable on March 25, 2018. As security for the payment of his loan, Amador
constituted a mortgage on his residential house and lot in Basilio’s favor. Cacho, a good friend of Amador, guaranteed and
obligated himself to pay Basilio, in case Amador fails to pay his loan at maturity. If Amador fails to pay his loan on March 25,
2018, can Basilio compel Cacho to pay?
a. No, Basilio cannot compel Cacho to pay because as guarantor, Cacho can invoke the principle of excussion
b. No, Basilio cannot compel Cacho to pay because Basilio has not exhausted the available remedies against Amador
c. Yes, Basilio can caompel Cacho to pay because the nature of Cacho’s undertaking indicates that he has bound himself
solidarily with Amador
d. Yes, Basilio can compel Cacho who unconditionally pay in case Amador fails to pay

75. If Amador sells his house and lot to Diego, can Basilio foreclose the real estate mortgage can Basilio foreclose the real estate
mortgage?
a. Yes, Basilio can foreclose the real estate mortgage because real estate mortgage creates a real right that attaches to the
property
b. Yes, Basilio can foreclose the real estate mortgage. It is binding upon Diego as the mortgageis embodied in a public
instrument
c. No, Basilio cannot foreclose the real estate mortgage. The sale confers ownership on the buyer, Diego, who must therefor
consent
d. No, Basilio cannot foreclose the real estate mortgage. To deprive the new owner of ownership and possession is unjust and
equitable

76. Which phrase best contemplates the statement – When a debt is secured by a real estate mortgage, upon default of the debtor
a. The only remedy of the creditor is to foreclose the real estate mortgage
b. Another remedy is filing an action for collection and then foreclose if collection is not enough;
c. The creditor can foreclose the mortgage and demand collection for any deficiency
d. None of the above

77. Which of the following is not correct in pledge?


a. It is an accessory contract
b. Electricity may be the object of pledge because this is controlled by science
c. The pledger may dispose the object of pledge
d. As a rule, the pledge can deposit the thing pledged with a third person

78. The following credit transactions are accessory contracts except


a. Pledge
b. Mortgage
c. Deposit
d. Antichresis

79. It is the delivery of a personal property for some particular use, or on mere deposit, upon a contract, express or implied that
after the purpose has been fulfilled, it shall be redelivered to the person who delivered it or otherwise dealt with according to
his directions, or kept until he reclaims it
a. Pledge
b. Deposit
c. Commodatum
d. Bailment

80. A obtained a loan of P500,000 from B Bank wherein he maintains a deposit account amounting to P1,000,000. Upon the
maturity of the loan, A was not able to pay from B. B automatically deducted the amount of the loan from A’s account. A
contends that B cannot deduct without his permission. Decide
a. A is correct because any deduction from his account requires his consent
b. A is correct because the amounts cannot be offset because one is in the nature of a deposit and the other is a loan
c. B is correct because compensation takes place by operation of law
d. B is correct because because the bank may deduct amounts from accounts of defaulting clients
81. The contract must bind both contracting parties; its validity and compliance cannot be left to the will of one of them. This is
known as the principle of:
a. Mutuality
b. Relativity
c. Consensuality
d. Freedom to contract

82. Do ut facias
a. I give that you give
b. I give that you make
c. I make that you give
d. I make that you make

83. Three of the following may be valid objects of a contract except:


a. All that are within the commerce of man
b. All services which are not contrary to law
c. Impossible things or services
d. All rights that are transmissible

84. The stipulation in a contract to the effect that the debtor should remain as a servant in the house and in the service of her
creditors so long as she had not paid her debt is void because it is:
a. Contrary to good customs
b. Contrary to public policy
c. Contrary to law and morality
d. Answer not given

85. These persons are bound by contracts:


a. Contracting parties
b. Heirs
c. Assigns
d. All of them

86. Requisites of a valid cause:


a. It must be lawful
b. It must be true
c. It must be real
d. All of them

87. D borrowed P500,000 from C. D died without having paid his loan obligation to C. He left S, his son and heir, properties worth
P400,000
a. S is liable to C for P500,000
b. S is liable to C for P400,000
c. S is liable to C for P100,000
d. S is not liable at all because he should not be made to shoulder the obligation of his father

88. F owes C P10,000,000. F dies leaving to the only heir S a house and lot valued at P7,000,000. S voluntarily pays P10,000,000.
Decide.
a. In the first place, S is under no obligation to pay C because the P10,000,000 is not his debt
b. S is obligated to pay P10,000,000 because he becomes liable for the debts of his predecessors-in-interest
c. C cannot be compelled to return the excess of P3,000,000 because it is the natural obligation of an heir to pay the debts of
his predecessor-in-interest if S voluntarily paid P10,000,000
d. If S paid C P10,000,000 the excess of P3,000,000 should be subject of an agreement between S and C because it is unjust to
S that he should lose his own money of P3,000,000.

89. Tadeo owned a vacant lot adjacent to a bigger lot where Star Circus planned to put up a two-week performance as provided in
the lease contract which it executed with Legaspi, the owner of the bigger lot. In expectation of using his property for a parking
lot, Tadeo leveled his lot and build a small shed which cost him P20,000, an amount he had yet to pay the contractor. Later,
however, the circus cancelled the performance, so Tadeo brought a court action to recover P20,000 from the circus and Legaspi.
Based on the forgoing information, which of the following is incorrect?
a. The circus contract took effect only between Star Circus and Legaspi, the parties of the contract of lease
b. Tadeo can recover damages from Star Circus and Legaspi by reason of stipulation pour autrui
c. Tadeo must pay his own contractor the amount of P20,000 because that is the obligation he alone contracted to pay
d. Tadeo, as an incidental beneficiary, has no rights under the circus contract.

90. Mr. Santos offered to sell his land to Mr. Calma for P100,000. Mr. Calma accepted the offer and paid Mr. Santos P100,000 and
Mr. Santos delivered the owner’s duplicate of the Transfer Certificate of Title of the land. Mr. Calma wishes to register the land
in his name but the Register of Deeds asked Mr. Calma for the Deed of Sale. What can Mr. Calma do?
a. Mr. Calma cannot compel Mr. Santos to return the payment because the contract is not enforceable
b. Mr. Calma may sue Mr. Santos to return the price under the legal maxi “No one may enrich himself at the expense of
another”
c. Mr. Calma ma comple Mr. Santos to execute a Deed of Sale because the contract is valid
d. Mr. Calma may occupy and use the land as a buyer in good faith.

91. The stages of a contract according to the order of their occurrence are:
a. Perfection, negotiation and termination
b. Conception, consummation and birth
c. Generacion, perfection and consummation
d. Termination, negotiation and birth

92. On June 1, 2018, S offered to sell his only car to B for P100,000. B accepted the offer by mailing his letter acceptance on June 10,
2018. On June 12, 2018, B revoked his letter of acceptance and mailed his letter of revocation on the same date. S received the
letter of acceptance on June 14, 2018 and the letter of revocation on June 15, 2018.
a. The contract was perfected on June 14, 2018 when S received B’s letter of acceptance
b. The contract was not perfected because at the time the acceptance was received, the parties were no longer of one mind
c. The contract was perfected on June 10, 2018 when B sent his letter of acceptance
d. The perfection of the contract retroacts to June 1, 2018 when the offer was made

93. Mr. A Santos signed a letter addressed and delivered to Mr. S Aguas. The terms of the letters are:
 An offer to sell a 500 sq.m. lot for P300,000
 An option time up to October 31, 1991 for Mr. S Aguas to raise the P300,000
 Upon payment of the P300,000, Mr A Santos will execute and sign a Deed of Sale
On October 31, 1991, Mr. A Santos sent a letter to Mr S Aguas asking for a new price of P350,000 for the 500 sqm lot. Can Mr S
Aguas compel Mr A. Santos to accept the P300,000 and make him sign and execute a Deed of Sale?
a. No. Mr. S. Aguas did not accept the offer of Mr. S. Santos
b. Yes. Mr. A. Santos is already estopped by his signed letter and offer
c. Yes. There was actual meeting of the minds
d. Yes. The contract is perfected

94. Simulation of a contract may be absolute or relative. It is relative when:


a. The parties do not intend to be bound at all
b. The contract is void
c. The parties conceal their true agreement
d. All of the above

95. S offered to B the sale of his house and lot for P10,000,000 by means of a letter. At the same time, B offered to buy from S the
same house and lot by way of telegram for P10,000,000 also. B has received the offer of S and S has also received the telegram
of B. Is there a perfected contract of sale between S and B?
a. No, because what occurred was not a concurrence of offer and acceptance but a crisscrossing of offers.
b. Yes, because the essential elements are all present, namely: consent, object and consideration
c. No, because the house and lot being an immovable to perfect the contract it must be in a public document.
d. Correct answer not given

96. S sold one of his lots to B for P100,000. The lot, located beside a busy street, consisted of 1,200 sqm and was covered by
TCT#12345. After registering the sale with the Registry of Deeds and the issuance to him by the said office of a new TCT in his
name, B discovered that the deed of sale and the new title described S’s adjoining lot which, although also consisting of 1,200
sqm, was covered by TCT#12346 and located farther from the street. B learned that C, the secretary of S, typed the wrong
description on the deed of sale. B now approaches you for advice on which course of action to take. What advice will you give to
B?
a. Annulment of the contract because he did not consent the purchase of the lot covered by TCT No. 12346.
b. Rescission because the erroneous description caused him damage
c. Reformation because the deed of sale failed to show the true intention of the parties to the contract
d. Declaration of nullity of the contract because it is void ab initio by reason of the wrong object

97. 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 an offer?
a. An offer made through an agent
b. Business advertisement of things for sale
c. Advertisement for bidders
d. Answer not given

98. A contract is in the stage of conception when:


a. There is meeting of the minds
b. Negotiations are in progress
c. The parties come to the agreement
d. The contract is perfected
99. Fraud exists in three of the following, except:
a. When through the insidious words or machinations of one of the contracting parties, the other is induced to enter into a
contract which, without them, he would not have agreed to
b. When there is a failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential
relations
c. When there is an expression of an opinion by an expert which turned out to be wrong, and the other party relied upon such
expert knowledge
d. When the misrepresentation refers to the usual exaggeration in trade, and the other party had an opportunity to know the
facts

100. Candelario, who knew that her ring was embellished was emerald. Cordelia, who knew that her watch was gold plated, told
Candelario that it was made of pure gold. Cordelia, believing Candelario’s ring was embellished with emerald, and Candelario,
believing that Cordelia’s watch was made of pure gold, then entered into a contract whereby they exchanged their respective
articles. A week later, Cordelia discovered that the ring was adorned only with an ordinary glass.
a. The contract may be annulled at the instance of Cordelia since she discovered the fraud
b. The contract may be annulled at the instance of Candelario since Cordelia also employed fraud
c. The contract is void because of the bad faith of both parties; hence, it shall not produce any effect.
d. Neither party may ask for annulment since both are guilty of fraud. The contract, thereof, is valid

101. Factor vitiating consent


a. Mora
b. Culpa
c. Dolocausante
d. Doloincidente

102. Ramon, a movie actor who has fathered many children by different women, donated a house and lot to Jennilyn believing that
the latter is his illegitimate daughter. The deed of donation and its acceptance were in a public instrument and a new certificate
of title to the house and lot was issued in the name of Jennilyn. A few months later, Ramon discovered that Jennilyn was not his
daughter but that of another movie actor. Ramon now wants to annul the contract.
a. Ramon may no longer annul the contract becayse all requisites have been complied with and a new title already issued in
the name of Jennilyn
b. Ramon may annul the contract on the ground of mistake as to the identity of Jennilyn
c. Ramon may not annul the contract but he can rescind it because he suffered damages
d. Ramon need not annul the contract but he can have it

103. S sold his only car for P100,000 to B. Unknown to S, B bought the car from him so that he could use the same in a bank robbery.
What is the status of the sale of the car by S to B.
a. The sale is void because the motive of B is illegal
b. The sale is valid because the illegality of the motive of the parties to the contract does not have any effect on its validity
c. The sale is voidable because of the failure to disclose his motive to S
d. The sale is rescissible at the instance of S would be damaged by the illegal motive of B

104. Contracts entered into a stage of drunkenness or during a hypnotic spell are:
a. Void
b. Valid
c. Voidable
d. Legal

105. It takes place when the parties do not intend to be bound at all by their agreement
a. Apparent contract
b. Absolutely simulated contract
c. Relatively simulated contract
d. Deed of assignment

106. Clarita and Aging entered into a contract where they made it appear that Clarita was mortgaging her lot and building to Aging to
secure a contract of loan. The truth, however, was that Clarita was selling her lot and building to Aging. Which of the following
statements is true?
a. The parties are bound by the contract of sale
b. The parties are bound by the contract of loan and mortgage
c. The parties are not bound at all
d. The parties are bound by the contract of sale only when third persons are affected

107. Which of the following is not a rule in the interpretation of contracts?


a. If some stipulation of any contract should admit of several meanings, it shall be understood as bearing that import which is
most adequate to render the contracts effectual
b. Words which may have different significations shall be understood in that which is most in keeping with the nature and
object of the contract
c. In order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally
considered
d. Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless the debtor provides the
contrary

108. The defective contracts arranged according to the degree of their defectiveness from the least to the most defective are:
a. Voidable, resissible, unenforceable and void
b. Rescissible, unenforceable, voidable and void
c. Rescissible, voidable, unenforceable and void
d. Unenforceable, rescissible, voidable and void

109. Which of the following contracts is not rescissible?


a. Those which are entered into by guardian whenever the wards whom they represent suffer a lesion of more than 25% of
the value of the object of the contract
b. Those executed in representation of an absentee, if the latter suffer a lesion of more than 25% of the value of the object of
the contract
c. Those where one of the parties is incapable of giving consent to the contract
d. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them
e. Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and
approval of the litigants or of competent judicial authority

110. A guardian of B sold B’s house and lot worth P480,000 for P240,000
a. The contract can be rescinded because of inadequacy of the price
b. The contract cannot be rescinded because there is no fraud, mistake or undue influence
c. The contract cannot be rescinded because all elements of contract are present
d. The contract cannot be rescinded because it is expressly provided by law as one of the contract which cannot be rescinded

111. Andy is the representative of Babes, an absentee sells a house and lot valued at P100,000 for only P60,000. The contract is:
a. Valid
b. Rescissible
c. Voidable
d. Unenforceable

112. 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 years 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
d. Sales of goods, chattels or things in action at a price not less than P500
e. All of the above

113. 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 into the contract a fraud that vitiated his consent. The action for annulment shall be brought
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

114. Leveriza, the owner of an apartment, leased the premises to Toribio. The terms of the lease provide for a monthly rental of
P6,000 which shall be paid by Toribio at the residence of Leveriza about two blocks from the apartment. For the month of
December, Toribio went to the residence of Leveriza but the latter was not round to receive the payment. Not wanting to go
back, Toribio left the payment with Nograles, a neighbor of Leveriza, who promised to give the payment to Leveriza. However,
Nograles spent the amount he received for himself. Based on the foregoing facts, which of the following statements is
incorrect?
a. The payment by Toribio to Nograles is valid since the latter is a neighbor of Leveriza
b. The payment by Toribio is not valid because Nograles was not authorized to receive the payment
c. Leveriza can demand payment from Toribio for the December rental
d. Toribio can go after Nograles for the amount misspent by Nograles

115. The following are the characteristics of a contract of commodatum, except


a. It is an accessory contract
b. It is a real contract
c. It is purely personal
d. It is essentially gratuitous

116. It is called a bailment for consumption


a. Commodatum
b. Mutuum
c. Deposit
d. Pledge

117. The following contracts are perfected by the delivery of the object of the contract, except
a. Commodatum
b. Mutuum
c. Deposit
d. Equitable mortgage

118. The bailor may demand the immediate return of the goods under the following circumstances, except
a. Precarium
b. In case of urgent need by the bailor
c. If the bailee commits acts of ingratitude to the bailor
d. If the object is damaged during a fortuitous event

I. TRUE OR FALSE. On the space before each number, write O if the statement is TRUE and write X if the statement is FALSE.
STRICTLY NO ALTERATIONS.

1. Payment shall be made to the person whose favor the obligation has been constituted, or his successor in interest, or any
person authorized to receive it.
2. Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
3. If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him
4. The payment of debts in money shall be made in the currency stipulated, and if it is not possible to deliver such currency, then
in the currency which is legal tender in the Philippines
5. Consignation may be judicial or extrajudicial
6. Tender of payment is an act on the part of the active subject of offering to the passive subject the thing or the amount due
7. When the debtor binds himself to pay when his means permit him to do so, the obligation is conditional
8. Obligation of restitution do not apply to creditors who seek to impugn fraudulent transactions of their debtors
9. Rescission will not take place when the things which are the object of the contract are legally in the possession of 3 rd person
who acted in bad faith
10. Not only the parties, nut their heris and assigns are bound by their contract
11. Obligations arising from contracts have the force of law between the contracting parties and must be complied with in good
faith
12. Fraud committed in the performance of an obligation gives the injured party the right to annul the contract
13. The debtor is never liable for the non-performance of his obligation due to fortuitous event
14. Sale is a consensual contract; therefore, delivery or payment is not essential for perfection
15. Emptio spei is the sale of thing which comes into existence, the quality and quantity of which are unknown
16. Where necessaries are sold and delivered to a minor, he must pay a reasonable price therefor
17. If several persons jointly and in the same contract should sell an undivided immovable with a right of repurchase, none of them
may exercise this right for more than his respective share
18. In contract to sell, ownership passes to the buyer upon actual or constructive delivery
19. A contract to sell, even if accepted by the buyer is not an absolute sale
20. In installment sale of real property, the buyer shall have the right to pay in advance any installment or the full unpaid balance of
the purchase price anytime without interest and to have such full payment of the purchase price annotated in the certificate of
title covering the property, even if there is a stipulation prohibiting the buyer to do so
21. In installment sale of real property, if the contract is cancelled, the seller shall refund to the buyer the cash surrender value of
the payments on the property equivalent to fifty percent of the total payments made provided there is already payment of at
least five years
22. In case of pledge of animals, their offsprings shall pertain to the pledgor of the animal and are no longer subject to the pledge,
unless stipulated
23. The expenses for the execution and registration of the sale shall be borne by the vendor, unless there is a stipulation to the
contrary.
24. The guarantor cannot subject his guaranty to another guaranty.
25. Money cannot be the subject for commodatum.
26. Only movables may be the subject of commodatum
27. Under a contract of precarium, the bailor may demand the return the thing loaned AT WILL
28. The bailor must be the owner of the thing loaned under a contract of commodatum
29. The bailee cannot lend or lease the object of the contract of commodatum to another person
30. Under a contract of sale, the price refers to money only
31. The contract of barter is governed by the provisions on the contract of sale
32. No person shall be imprisoned for non-payment of a debt
33. Under the contract of deposit, the object of the contract cannot be used by the bailee under any circumstance.
34. In case of multiple bailees in a contract of commodatum, their liability is solidary
35.

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