Since you are probably finished or almost done with Remedial Law and Commercial Law,

spare some time for Civil Law too.

TRUE OF FALSE UNLESS OTHERWISE REQUIRED. If the answer is False, explain in one
sentence. (Use yellow pad or any paper available)

1. In sales, knowledge of a third party of an unregistered right to repurchase is equivalent to

registration negating good faith on his part.
2. Consumable goods may be the subject matter of a contract of lease.
3. It shall be unlawful to employ a 16-year-old man as domestic worker.
4. It is unlawful for X to wash the clothes of Y for a week in payment of the former’s
obligation to the latter in the amount of P500.
5. A travel agency must observe extraordinary diligence in the performance of its contractual
obligations.
6. It may be agreed that goods may be transported at the risk of the owner.
7. Additional limited partners may be admitted without need of amending the certificate of
partnership.
8. A contract entered into by an agent exceeding his authority is unenforceable.
9. The lack of a license to sell in violation of a mandatory provision of PD 957 results to the
invalidation of the contract to sell entered into by a subdivision developer with a buyer.
10. Article 1544 of the Civil Code on double sale will also apply to sales involving
unregistered land.
11. In a contract to sell, the buyer may file an action for specific performance if the seller
refuses to accept the full purchase price tendered by the former.
12. A separate action for reformation of instrument is no longer necessary before foreclosure
as a court declaration that the parties' intention was to execute an equitable mortgage is
sufficient reformation of such instrument.
13. In a potential sale transaction, the prior payment of earnest money even before the
property owner can agree to sell his property can be used to bind the owner to the
obligations of a seller under an otherwise perfected contract of sale.
14. An action for reconveyance based on implied trust prescribes in 10 years to be counted
from the date of issuance of the Torrens title over the property except when the person
enforcing the trust is not in possession of the property.
15. In a joint indivisible obligation, the insolvency of a debtor makes the others liable for his
share as an exception to the general rule because the creditor must proceed against all
debtors.
16. The rule on relativity of contracts applies to a contract entered into by the gestor in
negotiorum gestio.
17. A contract of lease with an option to renew shall be extinguished by the death of either
the lessor or the lessee.
18. A duly registered levy on attachment could not prevail over a prior sale even if
unregistered because of the rule of first in time better in right.
19. Rescission may be availed of by a party in a partnership contract upon the failure of a
contracting party to perform the reciprocal obligation of delivering his promised contribution.
20. The death of the principal terminates the agency.
21. The death of a general partner terminates the partnership.
22. The death of a debtor in an obligation to do extinguishes the obligation.
23. The loss of the thing used to secure an obligation due to the fault of the creditor
terminates the principal obligation.
24. There will be delay if the debtor refuses to choose an alternative prestation within the
period agreed upon for the choice to be done.
25. A debtor may compel his creditor to accept as legal tender the commemorative
Php50,000 bill in payment of an obligation incurred during the expanded community
quarantine.
26. A common debtor may opt to apply payment to his personal debt owing to the managing
partner over his obligation to the partnership even if the latter obligation bears a higher rate
of interest.
27. In all instances, a limited partner shall be liable as a general partner if he participates in
the management of the partnership.
28. There can be delay on the part of the creditor in an obligation not to do if he fails to stop
the prohibited act within a reasonable period of time.
29. The Recto Law applies to assignment of leasehold rights.
30. The principal has a subrogatory right against a sub-agent for damages incurred through
the latter’s fault.
31. Warranty in sales is a natural element of the contract.
32. Formality of the sale is an essential element of a sale of land through an agent.
33. Vices of consent that affects cognition includes incapacity, error and fraud.
34. The intention prevails as against third parties in case conflict exists between the words
and the intention of the parties.
35. Relative nullity and rescissibility may be cured by confirmation or prescription.
36. Inadequacy of cause upon the contract invalidates the same.
37. A relative simulation makes the apparent contract void as between parties, but the
hidden contract is valid if it is lawful and has the necessary requisites.
38. Gross negligence in the performance of an obligation will have the same consequences
as fraud.
39. A stipulation for an incentive of plus 1 in the final grade in Civil Law Review 1 for
students who watched the Red Lions win the NCAA championship is valid.
40. As a rule, the execution of a notarized deed of sale is equivalent to delivery of the thing
sold.
41. A court judgment for the price of goods in an action for collection results to a waiver of
the unpaid seller’s lien on the goods.
42-45. ​Enumerate the warranties of an assignor of a claim secured by a document of title to
goods.
46. The hen sold to Y yesterday laid 2 eggs this morning. At the agreed time of delivery
tomorrow, the seller must deliver the 2 eggs to Y.
47. If the buyer does not appeal the judgment of eviction, the warranty against eviction will
not apply.
48-50.​Instances when the sale of a subdivision lot is exempt from the requirement of a
license to sell.
51-56. ​Grounds for the revocation of a license to sell issued to a subdivision owner.
57-68. ​Give 12 distinctions between limited partnership and general partnership.
69-74.​Give the order of priority in the payment of the liabilities of a limited partnership upon
liquidation.
75-80.​Give six characteristics of a contract of agency.
81-95. ​Enumerate 15 obligations of the agent to his principal.
96-98.​Explain the doctrine of marshaling of assets in partnership.
99. A foreign-owned partnership may engage in retail trade in the Philippines.
100. Barter in effect is a mutual sale where both are vendors and vendees to each other.
101. All the Civil Code provisions on pledge were repealed by the Personal Property
Security Act.
102. Deposit accounts and intellectual property rights may now be used as loan collateral.
103. Under the PPSA, future income cannot be pledged to secure an obligation because of
the uncertainty of income.
104. An airplane may be pledged or mortgaged.
105. Under the PPSA, delivery of the thing pledged is necessary to perfect the contract.
106. A security interest by way of pledge must be in a public instrument.
107. Under the PPSA, the pledgee shall return to the pledgor the excess of proceeds over
the debt.
108. Under the PPSA, the pledgor is liable for any deficiency of the proceeds.
109. The bailee in commodatum acquires the use of the thing loaned as well as its fruits for
the duration of the contract.
110. Consumable goods may be the subject of commodatum.
111. A thief, lessee, or usufructuary may be a bailor in commodatum.
112. The bailee in commodatum can never lend or lease the object of the contract to a third
person.
113. The bailee is obliged to pay the ordinary expenses for the use and preservation of the
thing loaned.
114. The bailee is liable for the loss of the thing if he lends or leases the thing to a third
person who is not a member of his family except when it is lost through a fortuitous event.
115. The bailor may demand the thing at will if neither the duration of the contract nor the
use to which the thing loaned should be devoted has been stipulated.
116. The bailor may exempt himself from the payment of expenses or damages by
abandoning the thing to the bailee.
117. Only in loan contracts, with or without security, may interest be demanded.
118. A contract of deposit is binding and perfected even before the delivery of the thing.
119. Exceptionally, the ownership of the thing loaned may be retained by the Creditor.
120. A stipulation to pay interest in a contract of loan is unenforceable if not reduced in
writing.
121. Compounding of interest is allowed only by agreement.
122. Payment of interest in the absence of stipulation shall be governed by solutio indebiti.
123. The current legal rate of interest for forbearance of money is 12% per annum.
124. A contract of irregular deposit allows the depositary to use the property of the depositor.
125. A movable or immovable thing may be the object of a voluntary deposit.
126. A contract of deposit must be in writing in order to be valid.
127. The depositary cannot deposit the thing with a third person.
128. The depositary shall be liable for the loss of the thing deposited if he allows others to
use it, even though he himself may have been authorized to use the same.
129. The depositary can demand that the depositor prove his ownership of the thing
deposited.
130. When there are two or more depositors who are not solidary, each one cannot demand
more than his share if the thing can be divided.
131. The depositary may not return the thing deposited upon demand if a specified period or
time for such return has been fixed.
132. A deposit is necessary when it is made in compliance with a legal obligation.
133. A gratuitous deposit is extinguished upon the death of either the depositor or the
depositary.
134. The insolvency of the guarantor entitles the creditor to demand another guarantor.
135. Future debts of unknown amount may be guaranteed and the guarantor may be sued
even before the debt is liquidated.
136. Guaranty must be express and is never presumed.
137. The guarantor can bind himself for more or less than what the debtor is liable to pay.
138. The debtor may interpose against the guarantor all defenses available against the
creditor.
139. The benefit of exhaustion in favor of the guarantor is not available where the guaranty
is in the form of a mortgage of the guarantor’s property.
140. Execution may be enforced against the guarantor whenever a writ of execution is
issued against the debtor.
141. If the guarantor pays before the due date, he cannot proceed against the debtor until
that date arrives, unless the debtor ratifies the payment.
142. The pledgee cannot deposit the thing pledged with a third person, unless there is a
stipulation authorizing it.
143. The pledgor remains the owner of the thing pledged until its sale.
144. The pledgor has the right to the return of the thing pledged upon extinction of the
principal obligation.
145. The pledgee may use the thing pledged on his own will.
146. In a real estate mortgage, a stipulation forbidding the owner from alienating the
immovable is valid.
147. The mortgage credit may be alienated or assigned to a third person, in whole or in part.
148. In a real estate mortgage, the creditor has the right to appropriate the fruits.
149. Antichresis may be constituted only on immovable property.
150. A pledgor who is not the debtor, has the rights of a guarantor to seek reimbursement,
subrogation, or excussion and is not prejudiced by any waiver of defense by the debtor.
151. The incorporeal right of lease over a condominium unit evidenced by a notarized
contract of lease may be validly pledged.
152. A pledge made by a third party who is not the owner of the thing pledged is void
because only an owner without exception may pledge his property.
153. An agreement to the effect that the thing pledged should be applied in payment of the
obligation by way of dacion en pago is void because this will constitute pactum
commissorium.
154. If there are three debtors who are jointly liable, the creditor may enforce the obligation
of each against the whole thing pledged.
155. The pledgee cannot use the thing pledged without the express authority of the pledgor
even if its preservation so requires.
156. All fruits produced by the thing pledged are subject to legal compensation even in the
absence of a stipulation to this effect.
157. The pledgee of a pawn ticket must renew it when necessary.
158. Unless stipulated otherwise, the return of the thing pledged to the owner extinguishes
the pledge.
159. In all instances, the pledge is extinguished when the thing pledged is in the possession
of the pledgor.
160. The pledgor must pay the necessary and useful expenses incurred by the pledgee on
the thing pledged.
161-168.​What are the modes of extinguishing guaranty?
169-174.​What are the obligations of the pledgee in preservation of the thing?
175-177.​What are the obligations of the depositor?
178.​In antichresis, the debtor is obliged to account to the creditor for fruits and their
application to the interest and the principal of the credit.
179-181.​What are the kinds of necessary deposits?
182-185.​How is voluntary deposit extinguished?
186-189.​What are the special rules governing judicial deposit?
190-193.​What are the characteristic features of guaranty?
194-198.​In guaranty, in what cases is the Benefit of Exhaustion not available?
199-202.​What are the rights of the guarantor before making payment?
203.​The failure on the part of the creditor to demand payment after the debt becomes due
will extinguish the guaranty.
204-208.​What is a clawback clause? If it is incorporated in a contract of agency against the
paid commission of the commission agent in the event of annual profit shortfall, how shall it
be treated?
209. What is a quasi-contract?
210. An oral real estate mortgage is void against innocent third parties but valid between the
parties themselves.
211. An unregistered real estate mortgage may still be the subject of foreclosure.
212. A contract of antichresis that does not specify the interest in writing although it
expressly mentioned the principal amount is void and of no effect at all.
213. A lessee may mortgage the thing leased but only valid during the effectivity of the
lease.
214. A mortgage made by a co-owner of a parcel of land owned in common without the
consent of the other co-owners produces no legal effect.
215. The nullity of a mortgage does not render null and void the principal obligation it
guarantees.
216. A municipality may not mortgage a patrimonial property being used as a public market.
217. Growing fruits while they are attached to the land may not be proper objects of a chattel
mortgage.
218. Define an agency coupled with an interest.
219. A mortgage may be gratuitous.
220. A mortgage follows the property whoever the possessor only when there is a formal
assumption of mortgage by the transferee.
221. While the law does not specifically require the delivery of possession of the property to
the antichretic creditor, delivery has been held to be a standard characteristic of a contract of
antichresis.
222. All immovable properties may be the object of a contract of antichresis.
223. The mortgage extends to both natural and artificial accessions.
224. The parties must agree on the valuation of the fruits for application to the interest and
principal of the debt.
225. The parties may stipulate to share the taxes and charges upon the estate during the
period of antichresis.
226. The expenses for preservation of the property in antichresis shall be deducted from the
fruits of the same.
227. The obligation of two debtors in solutio indebiti is solidary.
228. To suppress rampant lawlessness in the community, majority of the residents agreed to
hold a prayer rally. An atheist who objected to the holding of the prayer rally has no liability
to pay a share of the expenses for the event even if there was notable peace in the
community after the prayer rally.
229-231.​Give three rights of an antichretic creditor.
232-234.​Give three (3) obligations of an antichretic creditor.
235. Stipulations in a contract of antichresis for the extrajudicial foreclosure of the security is
void for lack of legal basis.
236. In a real estate mortgage, foreclosure pursuant to Act No. 3135 does not require a
personal notice to the mortgagor.
237. In real estate mortgage and antichresis, the deficiency or excess is for the account or
credit of the debtor unlike in the case of pledge.
238. Illustrate a “purchase money resulting trust”.
239. A survivorship agreement that upon the death of one of the joint account holders the full
amount of money in their account shall become the property of the survivor, is a valid
aleatory contract.
240. Betting in basketball games is valid because basketball is a game of skill and not of
chance.
241. The insolvency of the guarantor entitles the creditor to demand another guarantor even
if the creditor designated the guarantor.
242. Future debts of unknown amount may not be guaranteed because there is yet no
principal obligation.
243. Guaranty must be express but exceptionally it could be implied from the acts of the
guarantor as in a guaranty by estoppel.
244. The guarantor can bind himself for more than what the debtor is liable but not for less.
245. If the parties avail of a contractual provision for an automatic extension, the guarantor
will be released.
246. In case of merger between the debtor and guarantor, the guaranty is extinguished but a
sub-guarantor, if any, is not released.
247. There is no excussion in judicial guaranty.
248. When the principal obligation is modified by agreement, the guarantor is released if he
did not agree to the modification even if the modified obligation will be less onerous.
249. A remission in favor of one of five guarantors extinguishes the principal obligation but
only to the extent of 1/5.
250-255.​Give six (6) examples of legal pledge.
256.​For all intents and purposes the pledge is extinguished when the thing pledged is in the
possession of the pledgor.
257.​The rules governing possession and preservation of a thing pledged by agreement also
apply to legal pledges.
258-262.​Characteristics and features of conventional deposit.
263-265.​Obligations of the depositary.
266-270.​Distinctions between judicial deposit from conventional deposit.
271-274.​Distinctions between solidary guarantor and solidary debtor.
275. A quasi-contract may be nominate or innominate.
276. The rights under quasi-contract prescribe in six years.
277. Negotiorum gestio arises when a person takes charge of an abandoned property of
another who does not oppose notwithstanding knowledge.
278. Why cannot an interest of a limited partner subjected to a charging order be redeemed
using partnership property?
279. Solutio indebiti arises when payment is made through mistake, liberality or some other
cause.
280-284. ​Requisites of “negotiorum gestio”.
285-292.​When is the gestor in “negostiorum gestio” liable for damages even if due to
fortuitous event.
293-298.​Modes of extinguishing “negotiorum gestio”.
299. If the payer was in doubt whether the debt was due, he may recover upon proof that it
was not due.
300. Negotiorum gestio and solutio indebiti may apply in one and the same situation.
301. Negotiorum gestio is the management of affairs or property of another without the
latter’s consent whether express or implied and for his benefit.
302. A person who receives in good faith a payment made erroneously by the payor shall
only answer for the thing and its accessories to the extent of his enrichment.
303-306.​Requisites of “solutio indebiti”.
307. If the thing paid to the payee in good faith was thereafter alienated, the payee may
restore the price or assign the action to collect it.
308. What is the doctrine of efficient procuring cause?
309. The payee in bad faith can demand reimbursement for necessary and useful expenses
with right to retention.
310. What is agency by necessity?
311. A stranger who gives support has a right to claim from the one legally bound unless he
gave it out of piety and without intention of being repaid.
312. When through an accident, a person was injured and is treated or helped by another
while not in a condition to give consent, he shall be liable to pay for the services rendered
him even when they were rendered on pure generosity.
313-316.​Who are the parties in a contract of life annuity?
317. Motive is material in negligence cases.
318. An insane person is exempt from liability arising from a quasi-delict.
319. A violation of a statutory duty does not constitute negligence.
320. Error of judgment on the part of a surgeon necessarily makes him liable for damages.
321-324. Give 4 instances when the principal is not obliged to reimburse the expenses
incurred by the agent.​
325.​Unlike in the case of fraud, a person may validly waive his right to recover damages
which may result from negligence, provided it is not gross.
326-328.​Explain the “emergency rule” in torts.
329. In an express trust, the action to compel the trustee to convey the property to the
beneficiary prescribes in 10 years.
330. An action based on an implied constructive trust prescribes in ten years from the time of
repudiation.
331. The fact that the price in a pacto de retro sale is not the true value of the property
justifies the conclusion that the contract is one of equitable mortgage.
332. A co-owner has the pre-emptive right to buy the shares of his co-owners.
333. What must the lessee do if the lessor refuses to accept the rentals?
334. A provision in a lease contract that it will subsist for as long as the lessee promptly pays
rent is void for being contrary to public order and public policy.
335. The extraordinary liability of the common carrier does not apply when the goods are
already stored in its warehouse because the rules on deposit would already apply.
336-338.​Enumerate the specific obligations of the agent in performing the agency with
exactness.
339.​The liability of an industrial partner for outstanding partnership obligation is solidary.
340-344.​Give five distinctions between rescission of contracts under Article 1380 and
rescission under Article 1191.
345. Extraordinary expenses on the occasion of the actual use by the bailee without fault
shall be borne by the bailor.
346. If in a subsequent agreement a third person assumes payment of an obligation there is
already novation even if the old debtor was not released from responsibility.
347-356.​In a criminal case for homicide through reckless imprudence, upon arraignment,
defendant driver, D, pleaded guilty. The trial court rendered judgment convicting him and
sentencing him to pay the heirs of the deceased P12,000. Upon motion of the heirs of the
deceased, a writ of execution was issued against D, but was returned unsatisfied because of
the latter’s insolvency. Whereupon, a motion for the issuance of a subsidiary writ of
execution was filed against E, D’s employer. E now contends that since he is not impleaded
in the criminal case, the proper remedy in order to enforce the subsidiary liability of
employers under Art. 103 of the Revised Penal Code is to bring a separate civil action
against him. Is E correct?
357-366.​A parcel of land covered by a tax declaration has already been the subject of a
series of transfers until it was mortgaged to a bank by X who did not pay the obligation. The
bank foreclosed the mortgage. The bank’s ownership was later on consolidated; then, A and
B acquired it from the bank with a warranty against eviction but no warranty that its title was
perfectly valid. When A and B asked for a certification from the Bureau of Forest
Development, it was found out that the land was a timberland, hence, they asked for the
refund of their money. The bank contended that it was the absolute owner, having bought it
at an auction sale, and that there was no malice or fraud in its sale to A and B, hence it could
not be compelled to return the purchase price. Is the bank correct?
367. Where negligence is punishable under the Penal Code, the responsibility for
quasi-delict is distinct from the civil liability arising from the felony and may therefore be
pursued separately.
368. A breach of contract may result from a quasi-delict.
369-370.​Define proximate cause.
371-372.​What is the doctrine of contributory negligence?
373-374.​Explain the doctrine of discovered peril.
375. Under the doctrine of “supervening negligence”, the antecedent negligence of a
telephone company in not providing warning signs on its excavations would not make it
liable if the plaintiff had a clear chance to avoid the accident.
376. The “volonti non fit injuria” rule does not apply if a person, aware of the possible
danger, takes some risks in order to preserve life.
377-378.​What is the doctrine of imputed negligence?
379. The burden of proof is the same in actions culpa contractual and culpa aquiliana.
380-381.​Explain the res ipsa loquitor rule.
382. Philippine law also recognizes the “strict liability in torts” rule.
383. Liability may be created even if there is no fault or negligence.
384. If the driver and owner of a cargo truck which figured in a road mishap were found liable
for tort, their liability is solidary.
385. A subsidiary writ of execution may be issued against the employer of an accused even
if the former did not participate in the criminal proceedings.
386. Exceptionally, the crime of rape may be considered a quasi-delict.
387-390. Requisites of quasi-delict.
391. Culpa contractual and culpa aquiliana both give rise to an obligation to indemnify.
392. As a general rule, quasi-delict covers all negligent or culpable acts or omissions
whether punished by law or not so long as they do not constitute breach of contract.
393. Factors affecting negligence are circumstances of person, time, place and skills.
394. A person may be held responsible for the acts and negligence of others under his
control and supervision as in injury caused by stray animals.
395-399. Enumerate the persons responsible for the acts and negligence of others.
400. The head of families that live in buildings or parts thereof shall be liable for damages
caused by things thrown or falling from the same and no proof of negligence is required to
hold them liable.
401. Damages recoverable for quasi-delicts include damnum emergens and lucrum
cessans.
402. Fault must be the proximate and need to be the only cause for the damage in order to
recover indemnification.
403. Actual damages are reparation of pecuniary losses.
404. Moral damages are reparation for non-pecuniary losses.
405. Liquidated damages must be proved by the claimant.
406. Exemplary damages are for deterring future violations.
407. Fixing the amount of indemnity may only be by law or by the courts.
408-409. What is the extent of compensatory damages?
410-412.​Give the requisites for the recovery of actual damages.
413. Equitable mitigation of damages may be decreed if loss would have resulted in any
event even if there was no breach by the defendant.
414. No interest may be recovered on unliquidated claims or damages, except when the
demand can be established with reasonable certainty at the Court’s discretion.
415-418.​Enumerate the cases where attorney’s fees and costs of litigation may be
recovered.
419-423.​In what cases may an award for moral damages be made?
424-426.​Characteristics of liquidated damages.
427. Liquidated damages are those damages agreed upon by the parties to a contract and
may not be equitably reduced.
428. Exemplary damages cannot be awarded alone.
429. The preference provided in article 2241 of the Civil Code can only be applied if there is
an insolvency proceeding.
430. With reference to specific movable property, the claims of employees of the owner now
enjoy preference over taxes.
431. With respect to specific immovable property, only taxes enjoy absolute preference and
the other preferred credits must be paid pro rata.
432-435.​What are the 4 elements involved in medical negligence cases?
436. A partner may be both limited and general in one partnership.
437-439.​What are the elements of abuse of right?
440-442.​In what instances are the partners solidarily liable with the partnership?
443-447.​What are the requisites of agency by necessity?
448. Extraordinary expenses on the occasion of the actual use by the bailee without fault
shall be borne by the bailor.
449-458.​X borrowed money from Y. As a surety for the payment of the obligation, Z
executed a real estate mortgage in favor of the creditor, Y. X failed to pay his obligation,
hence, Y demanded the payment of the obligation. As X failed to comply, Y foreclosed the
mortgage executed by Z, who moved for the nullification of the same contending that Y
should have resorted first to the properties of X before the foreclosure. Is Z’s action correct?
Why?
459-468.​“O”, owner of a copying machine, leased it to “L” at a rental of P4,000.00 a month
for a period of one year with option on the part of “L” to buy the copying machine at the end
of one year for P80,000.00, to be paid by applying the rentals, so that “L” needs only to pay
P32,000.00. “L” failed to pay rentals for the 4th, 5th and 6th months so that “O” terminated
the lease and repossessed the copying machine, then sued “L” for the unpaid rental of three
months, or P12,000.00. Is “O’s” suit legally tenable? Explain.
469.​The agent is obliged to deliver to the principal whatever he may have received by virtue
of the agency, even though it may not be owing to the principal. Give one exception.
470.​A third person dealing with a partner or an agent must ascertain the limits of authority of
the acting partner or agent.
471.​In an express trust, acceptance by the trustee is not necessary for the creation of the
trust.
472.​Acceptance by the beneficiary is not necessary for the creation of an express trust.
473.​The trustor may or may not have the capacity to transfer property.
474.​Express trust is created by declaration of the trustee that he holds the property in trust.
475.​Trusts over real property are enforceable in any form.
476.​The trustee can acquire the trust property by adverse possession even without
repudiation of the trust.
477.​In order to bind third persons to a trust, the same must be in a public instrument.
478.​Statute of limitations applies to express trusts.
479.​There is partnership when two or more persons bind themselves to contribute money,
property, reputation or industry to a common fund, with the intention of dividing the profits
among themselves.
480.​A contract of partnership may be constituted in any form except when a parcel of land is
contributed in which case the contract must be in a private or public instrument.
481.​Husband and wife may enter into a partnership for the exercise of a profession.
482.​The sharing of net returns may indicate the existence of a partnership.
483.​A person who, not being a partner in fact, allows his name to be included in the firm
name, may subject himself to the liabilities of a limited partner.
484.​Appraisal of goods contributed to the partnership must be based on the value at the time
of perfection of the contract if different from delivery.
485.​An industrial partner may engage himself in any other business with the authority of the
other partners.
486.​When there is no specification as to the management of the partnership, the partner with
the highest contribution becomes the manager.
487.​The capitalist partners may exclude from the partnership an industrial partner who
engages himself in a business without the required authority even if the industrial partner
also contributed a parcel of land to the partnership.
488.​A limited partner is a partner in a partnership.
489.​A limited partner who is also a general partner is liable to the creditors of the partnership
but only up to his contribution.
490.​A limited partnership is dissolved upon retirement, death, insolvency, insanity or civil
interdiction of a general partner.
491.​A contract of agency to sell personal property is a real contract that would require the
delivery of the thing to be sold.
492.​A partnership is formed even if no inventory and public instrument of real properties
contributed to the partnership was made.
493.​Universal partnership of all present property includes title to all present and future
property as well as future properties acquired by gratuitous title.
494.​A contract of partnership with a capital of P3,000 must appear in a public instrument and
recorded in the Securities and Exchange Commission to be enforceable.
495.​A stipulation excluding an industrial partner, from any share in the profits or losses is
valid.
496.​An industrial partner is exempt from payment of liabilities to partnership creditors.
497.​A transfer of a partner’s entire interest in the partnership to his only partner dissolves the
partnership.
498.​In voluntary transfer of a partner’s interest in the partnership, the assignee becomes a
partner if majority of the partners consent thereto.
499.​A person admitted as partner in an already existing partnership is also liable with his
individual properties for all obligations of the partnership arising before his admission unless
there is a contrary stipulation.
500.​A commission agent cannot sell on credit goods or items without the express or implied
consent of the principal.
501.​An agency “coupled with an interest” survives the grantor’s death.
502.​In case there are two or more principals, any one of them may revoke the agency
provided the consent of the other is sought.
503.​Constructive trusts are imposed by the law to carry out the actual or presumed intent of
the parties if the express trust is prejudicial to the interest of the beneficiary.
504.​Resulting Trusts are established by law, regardless of intention, in order to prevent
fraud, oppression or unjust enrichment.
505.​No express trust concerning an immovable or any interest therein may be proved by
parol evidence.
506.​There is a resulting trust when a donation is made to a person but it appears that
although the legal estate is transmitted to the donee, he nevertheless is either to have no
beneficial interest or only a part thereof.
507.​There is a constructive trust when land passes by succession to any person and he
causes the legal title to be put in the name of another.
508.​There is constructive trust if the price of a sale of property is loaned or paid by one
person for the benefit of another and the conveyance is made to the borrower but mortgaged
to secure the payment of the debt.
509.​Laches is a defense in resulting trusts unless the beneficiary had no knowledge of the
facts.
510.​In express trusts, the statute of limitations does not apply to subsisting and continuing
trusts, so long as there is no denial or repudiation thereof.
511.​The sharing of gross returns is sufficient to establish existence of a partnership.
512.​When an unlawful partnership is dissolved by a judicial decree, the profits and unlawful
objects shall be confiscated in favor of the State.
513.​The land owned by the partnership where it operates a shabu laboratory may be
confiscated by the State.
514.​When a partnership for a fixed term or particular undertaking is continued after the
termination of such term or particular undertaking without any express agreement, the rights
and duties of the partners remain the same as they were at such termination for the same
period as initially fixed in the contract of partnership.
515.​Important alterations in the immovable property of partnership, if useful and beneficial to
the partnership, is a mere act of administration and may be made upon the consent of the
financial majority.
516.​Strangers are bound to inquire into the existence of any restriction of authority on the
part of a partner.
517.​Misappropriation of one partner binds the partnership when the partner in the course of
business receives money or property of a third person and the money or property so
received is misapplied without the knowledge of the other partners.
518.​If a person specially informs another or states by public advertisement that he has given
a power of attorney to a third person, the latter thereby becomes a duly authorized agent, in
the former case with respect to the person who received the special information, and in the
latter case with regard to any person even if the latter did not read the publication when he
transacted with the agent.
519.​A special power of attorney is necessary to make gifts for charity or to employees in the
business managed by the agent.
520.​A special power of attorney is necessary to loan or borrow money, unless the latter act
be urgent and indispensable for the improvement or preservation of the things which are
under administration.
521.​An agent may be relieved by agreement from the obligation to make an accounting.
522.​If the commission agent receives guaranty commission in addition to ordinary
commission, the agent shall bear the risk of collection and shall pay the principal the
proceeds of the sale on the same terms agreed upon with the purchaser unless the principal
consented to the sale on credit.
523.​If the third person does not know that the agent exceeded the scope of his authority, he
may hold the agent liable as well as the principal, even if he has not inquired into the
authority of the agent.
524.​Agency by ostensible authority consists in the conscious permission of acts beyond
those powers granted.
525.​If two or more principals have appointed an agent for a common transaction or
undertaking, they are jointly liable unless solidarity is agreed upon.
526.​An agency is not revoked by the principal’s death if it has been constituted in the interest
of a third person without notice or knowledge of the interest.
527.​An oral trust over personalty is valid.
528.​There is no need for the trustee to render his account under oath.
529.​The trustor cannot prohibit alienation of the subject property for a period more than 25
years.
530.​Merger is a cause for the termination of an implied or express trust.
531.​In an implied trust, the action to recover must be brought within five years from the
issuance of the title to the property.
532.​A partner may transfer his interest to another over the objections of the other partners.
533.​A secret and silent partner is one who has no voice in the management of the
partnership and is not known to the other partners.
534.​The partnership begins from the moment it is recorded in the Securities and Exchange
Commission.
535.​The fruits of the property promised to be contributed by a partner should also be
delivered without exception.
536.​In case of imminent loss of the business of the partnership, an industrial partner shall be
required to contribute additional service to the partnership.
537.​An industrial partner can engage in other business, but must not compete with the
partnership, unless otherwise stipulated.
538.​A partner, as agent, cannot assign partnership property in payment of partnership debt.
539.​Dissolution terminates the partnership.
540.​Insolvency of a partner is one of the causes for voluntary dissolution of a partnership.
541.​In case of an agreement between a partner, the partnership debtors and the persons
continuing the business, a partner may be discharged from liabilities.
542.​Creditors of the old partnership are no longer considered as creditors of the continued
partnership.
543.​The individual property of a deceased partner, whose name is being used by the
continuing partnership, shall be held liable for debts contracted after his death.
544.​A limited partner may contribute services to the partnership.
545.​A limited partner’s surname may appear in the partnership name but he becomes a
general partner with respect to the partners and third parties.
546.​A substituted partner is one admitted to all the rights of a limited partner.
547.​An assignee of a limited partner acquires the rights of the assignor.
548.​A principal may be bound by an agent to render service without compensation.
549.​In all cases, a special power of attorney is necessary to loan or borrow money.
550.​Why is submission to arbitration not included in a special power to compromise?
551.​There is an implied acceptance if the principal delivers his power of attorney to the
agent and the latter receives it without objection.
552.​An agent may be exempted by stipulation from rendering an accounting.
553.​If the principal does not mention the power to substitute at all, the agent may appoint
one but he is responsible for the acts of the substitute.
554.​An agency is gratuitous unless compensation is agreed upon.
555.​The accomplishment of the object of the agency extinguishes an agency even prior to
the final accounting.
556.​An agency at will is revoked even if the revocation is not brought to the knowledge of the
agent.
557.​When a partner by estoppel combines with another partner and on the strength of the
representation, contracted with a third person, both of them are liable pro rata.
558.​A partner is a co-owner of the other partners with respect to the undistributed net profits
of the partnership.
559.​Winding up may be done by a mere assignee in exceptional circumstance.
560.​A decree of dissolution of a partnership may be granted upon application of the
purchaser of partnership interest in case of termination of the term or undertaking.
561.​Except as necessary for winding up, dissolution terminates all authority of partners to
act for the partnership.
562.​After dissolution, a partner can bind the partnership by any transaction which would bind
the partnership if dissolution had not taken place, provided the other party to the transaction
had extended credit to the partnership after the dissolution.
563.​Dissolution necessarily discharges a partner of liability for obligations incurred
thereafter.
564.​When a partnership agreement is rescinded on the ground of fraud or
misrepresentation, partners who are not guilty shall have the right to subrogation for any
payments made by them of partnership liabilities.
565-569.​What are the causes for involuntary dissolution of a partnership?
570-573.​What are the liabilities of the partnership in their rank in the order of payment?
574-579​Enumerate some rights of a limited partner?
580-585. ​What are the grounds for the extinguishment of agency? ​
586-595.​Give ten instances when an agency couched in general terms would not be
sufficient.
596.​In what instance may an assignee of a partner’s interest judicially demand for
dissolution at any time?
597-599.​Give three (3) examples of implied resulting trusts.
600++++.​Write your original, poem, song, story, essay, or any creative literature about the
covid-19 pandemic.