Documente Academic
Documente Profesional
Documente Cultură
:_____________ Date:_______
Encircle the correct answer.
1. When there is concurrence of the offer and acceptance, there is:
a. Payment c. Acceptance
b. Consent d. Revocation
2. When the object of the contract is outside the commerce of man, the contract is?
a. Rescissible c. Unenforceable
b. Voidable d. Void
3. Contracts are effective and binding only between the parties, their assigns and their heirs. Three of the
following enumerations are exceptions as provided by law. Which does not belong to the exception?
a. Where there is a stipulation in favor of a third party.
b. Where one of the parties to the contract dies and thereafter a suit is filed on the basis of the
contract.
c. Where the obligation arising from contract are not transmissible by their nature.
d. Where the obligation arising from contract are not transmissible by stipulation or by provision of
law.
4. A solidary obligation is one in which each of the debtors is liable for the entire obligation or debt, and
each of the creditor is entitled to the entire credit. Obligations shall also be considered solidary under
the following three exceptions. Which does not belong to the exception?
a. When solidarity is expressly stipulated in the obligation.
b. When the prestation is indivisible and there are two or more debtors and creditors.
c. When the law expressly provides solidarity.
d. When solidarity is required from the nature of the obligation.
5. In order that fraud may make a contract voidable:
a. It may be incidental but should have been employed by both parties.
b. It should be serious and the partied must be in pari delicto.
c. It should be serious and should not have been employed by both contracting parties.
d. It may be incidental but both parties should not be in pari delicto.
6. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-
debtors:
a. If such payment was made before the obligation is due.
b. If such payment was made after the obligation has prescribed or become illegal.
c. If such payment was made in compliance with the demand to him by all the creditors.
d. If such payment was made after the obligation has become due and demandable and notice of
payment was made only to him.
7. A and B who are both unemancipated minors entered into a contract. The contract entered into by and
between them is:
a. Rescissible c. Voidable
b. Unenforceable d. Void
8. Which of the following contracts cannot be ratified?
a. Those whose cause or object did not exist at the time of the transaction.
b. Unauthorized contracts.
c. Those where both parties are incapable of giving consent.
d. Those that fail to comply with the Statue of frauds.
9. Consignation is a mode of payment which extinguishes an obligation. Which of the following is not a
requisite for consignation?
a. Actual consignation with the proper judicial authorities.
b. Prior notice has not been made.
c. Existence of a valid debt.
d. There must be prior notice of consignation to persons interested in the fulfillment of the obligation.
10. The creditor shall have a right to indemnity for damages when, through the fault of the debtor, all the
things which are alternatively the object of the obligation have been lost or compliance of the obligation
has become impossible. The indemnity shall be fixed on the basis of:
a. The value of the least expensive things.
b. The value of the most expensive thing.
c. Te value of the last thing which disappeared.
d. The value of the first thing which disappeared.
11. A, B and C are solidary debtors of X in the amount of P12, 000.00. X then made a demand from A but
was able to collect P8,000.00 only because X remitted A’s share of P4, 000.00. How much can A collect
from B and C?
a. P12,000.00 c. P6,000.00
b. P8,000.00 d. P4,000.00
12. A is indebted to B for P20,000.00. X is the guarantor of A. B is also indebted to A for P8,000.00. How
much will X be liable as a guarantor if B sues A and A cannot pay?
a. P12,000.00 c. P8,000.00
b. P20,000.00 d. X has no liability
13. On October 4, 1987, A is indebted to B for P50,000.00 for a 20-day period. A proposed to B that X will
pay A’s debt and that A will be free from all liabilities. B and X agree to the proposal. On October 25,
1987, X became insolvent. At the time of delegation, X was already insolvent but this was not known to
A. The insolvency is not of public knowledge. So B sues A on the ground that it was A who made the
proposal that A guaranteed X’s solvency. Decide.
a. Is liable because he is presumed to have guaranteed X’s solvency.
b. A is not liable because A does not know the insolvency of X at the time of delegation and neither was
the insolvency of public knowledge.
c. A is liable because he did not exercise due diligence in determining the insolvency of X.
d. A is liable because X agree to the proposal to make himself solidarily liable for the obligation.
14. A and B are joint creditors mancomunados of X and Y, joint debtors, for a total sum of P9,000.00. A
owns 1/3 of the credit and B owns 2/3 of it. But X owns 2/5 of the debts and Y owns 3/5 of the debts. In
this case:
a. B can only collect from X, P5,400 and from Y P3,600.
b. A can only collect from X, P4,500 and from Y P4,500.
c. A can only collect from X, P3,600 and from Y P5,400.
d. B can only collect from X, P9,000 and from Y P0.
15. 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 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.
16. X enters into a contract with Y whereby X sold his land orally to Y. The land has been delivered and the
money has been paid. Is the oral sale of the land valid?
a. The contract is not valid because it is not in writing as required by the Statue of Frauds.
b. The contract is not valid because the contract is not made in a public instrument.
c. The contract is unenforceable.
d. The contract is valid because the contract is already perfected and executed.
17. To defraud his creditors, A contracted with B by selling a land to B. B now seeks to register the land
with the Register of Deeds. X, a creditor of A seeks to prevent registration on the ground that the
contract is rescindable. Despite X’s objection, may the land be registered based on the contract in B’s
name?
a. The land cannot be registered based on the contract which is rescindable.
b. The land cannot be registered because the contract is in fraud of the creditor
c. The land can be registered based on the contract because the contract is not yet rescinded.
d. The land can be registered because the contract is valid and can be attached collaterally in a land
registration proceeding.
18. On July 15, 1986, X entered into a contract with Y. On February 10, 1987, 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, 1987.
c. Within four years from the time A entered into the contract.
d. On February 10, 1987.
19. X, alleged that Y promised to give X one hectare of land. This is in consideration of X’s meritorious
service to Y. Y pleads in defense that since the promise was not in writing. It is unenforceable under the
Statue of Frauds. Decide.
a. The promise is unenforceable because it is not in writing.
b. The Statute of Frauds is applied because A has rendered service already.
c. The Statute of Frauds is inapplicable here because the promise to give the land is not a sale or real
property.
d. The Statute of Frauds can apply to partially executed contracts.
20. A has a daughter, B; X has a son, Y. A, B, X and Y agree together that Y will marry B. The agreement is
oral. If B later on refuses to marry Y who has spent for the necessary wedding preparations, X and Y
decided to bring an action against A and B, will the actions prosper? Decide.
a. Between Y and B, the action will not prosper because the agreement is made orally.
b. In case of A and X, the action will prosper because the agreement which was made orally is
enforceable as it is based in the consideration of marriage.
c. As to A and X, the action will not proper because the agreement is not enforceable as it was not they
who mutually promised to marry each other.
d. The action of X and Y against A and B will prosper because the agreement is based on the
consideration of marriage other than a mutual promise to marry.
21. X and Y are solidary debtors of A,B,C and D, joint creditors, to the amount of P8,000.00 How much can
A collect from X?
a. A could recover P4, 000.00 from X. A, in turn, has to give to B, C and D P1,000.00 each.
b. A could recover P2,000.00 only from X.
c. A could recover P1,000.00 only from X.
d. A could recover P8,000.00 from X, A, in turn, has to give to B, C and D.
22. Y sold his horse to Z for P50,000.00. No payment has yet been made and the sales document does not
provide the date of delivery. Before delivery and payment. The horse gave birth to a baby horse.
a. Z is entitled to the baby horse which was born after the perfection of the contract.
b. Y is entitled to the fruit (baby horse) as Z has not paid the price yet.
c. Y is entitled to the fruit (baby horse) because it was born before his obligation to deliver the horse.
d. Z should pay additional amount for the baby horse to be entitled to it.
23. A wrote a letter to B wherein A offered to sell a piece of land to B for P200,000. B signified his desire to
buy the land. In A’s letter, B was given a period of two months within which to produce the P200,000.
After 45 days, A told B that the price of the land is now P250,000. Can B compel A to accept the
P200,000 first offered by A and execute the Deed of Sale?
a. Yes, because there was actual meeting of the minds of the parties.
b. No, for B did not signify his acceptance of A’s offer.
c. Yes, because A is already estopped by his signed letter.
d. Yes, because the period of two months has not expired.
24. Mr. Santos sold his car to Mr. Garcia for P150, 000. No date is fixed by the parties for the performance
of their respective obligations. The obligation f Mr. Santos is:
a. To deliver the car immediately as there is a perfected contract.
b. To deliver the car upon payment of Mr. Garcia of P150,000.
c. To rescind the contract since there is no time fixed for the delivery and payment of the car.
d. To deliver the car within a reasonable time after the demand of Mr. Garcia to deliver.
25. Mr. AB owes Mr. CD P150, 000 due on August 31, 1987. Mr. AB executed a mortgage in favor of Mr. CD
on Mr. AB’s building to guaranty the obligation. On August 10, 1987, the mortgaged building was totally
lost due to a strong typhoon. On August 12, 1987, Mr. CD demanded payment from Mr. AB. Is Mr. CD’s
demand valid?
a. No. The obligation is with a definite period, thus the creditor cannot demand fulfillment of the
obligation as such would be prejudicial to the rights of the debtor.
b. No. The obligation is extinguished because the obligation is lost due to a fortuitous event.
c. Yes. The debt becomes due at once because the guaranty was lost even through a fortuitous event
unless the debtor can mortgage another property that is equally satisfactory.
d. Yes. The debt becomes due at once because the tenor benefit is given solely to the creditor thereby
giving the creditor the right to demand performance even before the due date.
26. Mr. ABC is obliged to give Mr. XYZ his only car on July 15, 1987. Mr. ABC did not deliver on July 15,
1987. On July 20, 1987 an earthquake destroyed the building where the car was garaged and the car was
destroyed. Is Mr. ABC still liable?
a. No. Considering that no demand to deliver was made by Mr. XYZ and the specific thing was lost due
to fortuitous event, the obligation is extinguished.
b. No. The obligation is extinguished even if the debtor is already in default because the debtor can
plead impossibility of performance.
c. Yes. Mr. ABC is already in legal delay, thus the obligation to deliver the lost specific thing is
converted into monetary claim for damages.
d. Yes. The creditor can instead demand for a substitute equivalent in value from the debtor.
27. An instrument is considered payable on demand:
a. When no time of payment is expressed.
b. When payable to order.
c. When the last endorsement is in blank.
d. When the last endorsement is restricted.
28. A and B are solidary debtors or X, Y and Z, joint creditors to the amount of P15,000. How much can Z
collect from B?
a. Z could recover P7,500 from B.
b. Z could recover P5,000 from B.
c. Z could recover P15,000 from B. Z in turn has to give X and Y P5,000 each.
d. Z could recover P15,000 from B. B in turn can collect from A the amount of P7,500.
29. These persons are bound by contracts:
a. Contracting Parties c. Assigns or assign
b. Heirs d. All of these
30. A, B and C borrowed P24,000 from Y and Z and signed a promissory note dated January 15, 1987 and
due within six months. How much can Y collect from A?
a. P12,000 c. P8,000
b. P4,000 d. P24,000
31. A, B and C borrowed P36,000 from X and Y. The three debtors signed a promissory note dated January
10, 1988 promising to pay the creditors on or before July 10, 1988. How much can X collect from C?
a. P18,000 c. P12,000
b. P6,000 d. P36,000
32. When the subject matter of the contract is lost through a fortuitous event, who is liable?
a. The debtor c. None of them
b. The Creditor d. Both creditor and debtor
33. When two persons are reciprocally debtors and creditors, there is:
a. Consignation c. Compensation
b. Merger d. Confusion
34. Contracts entered into during lucid interval are:
a. Unenforceable c. Void
b. Voidable d Perfectly valid
65. A executes a promissory note in favor of B and the promissory note is negotiated by B and subsequently
is indorsed in favor of A. The obligation to pay the promissory note is thereby extinguished because
there is;
a. Confusion or merger c. Remission
b. Novation d. Answer not given
66. Compensation shall take place when;
a. One of the debts arise from a depositum or from the obligation of a depository or of a bailee in
commodatum.
b. One of the debts consists in civil liability arising from a special offense.
c. Two persons, in their own right are creditor and debtors of each other,
d. Answer not given
67. The distinction between conventional subrogation and assignment is that conventional subrogation:
a. It is a mere cession of right.
b. An obligation is extinguished and anther appears.
c. The same obligation, without being extinguished, is transferred to another.
d. Answer not given
68. A promissory note signed by Martiniano and dated March 15, 1991 is worded as follows:” I promise to
pay Juanita the sum of Fifty Thousand Pesos (P50,000) provided that if she should fail in the October
1991 CPA Examination, she shall return to me said amount.” The above note gives rise to an obligation
with:
a. Suspensive condition c. Resolutory condition
b. Casual condition d. Answer not given
69. Bertulfo and Claudio promise to deliver a particular car valued at P100,000.00 to Manuela on or before
September 15, 1991. September 15, 1991 came and upon demand by Manuela for delivery from Bertulfo
and Claudio, Bertulfo was willing to deliver but Claudio refused to deliver. In the case at bar;
a. An action for specific performance will lie against both Bertulfo and Claudio.
b. Both Bertulfo and Claudio shall be liable for P50,000 each with damages.
c. Bertulfo shall be liable for P50,000 without damages and Claudio shall be liable for P50,000 and
damages.
d. Answer not given
70. Cecilio had Eduardo kidnapped and tortures for refusing to sell his (Eduardo’s) land to Cecilio. Eduardo
who could no longer bear the physical pains inflicted upon him signed a document of sale in favor of
Cecilio. The sale is;
a. Void c. Vaid
b. Voidable d. Answer not given
71. Choose the contracts which are voidable;
a. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the
claims due them.
b. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.
c. Those whose object is outside the commerce of man.
d. Those where both parties are incapable of giving consent to a contract.
72. 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 an agreement
d. The contract is perfected
73. In an obligation where only one (1) prestation has been agreed upon, but to extinguish the obligation
the debtor is allowed and does render another substitute, the obligation is;
a. Facultative obligation c. Alternative obligation
b. Simple obligation d. Conjoint obligation
74. In a joint A, B and C are debtors of joint creditors D, E and F in the amount of P180,000. A’s obligation
is:
a. Pay D P6o,000 c. Pay D P120,000
b. Pay D, E and F P180,000 d Pay D P20,000
75. Three (3) of the following contracts is void. Which is not?
a. Contract in writing contemplating and asking for impossible service.
b. Oral authority given to an agent in sale of land.
c. Oral partnership agreement where immovable property is contributed.
d. Oral partnership agreement when the capital is more than P3,000.
76. If the obligor binds himself to perform his obligation as soon as “he shall have obtained a loan” from
certain bank, this obligation is:
a. With a term c. Suspensive
b. Conditional d. Resolutory
77. Reluctantly and against her good sense and judgment, Rosemarie entered into a contract for the
delivery of 5 tables to Corazon for a price of P15, 000.00. Contract is:
a. Void c. Unenforceable
b. Voidable d. Valid
78. It takes place when the parties do not intend to be bond at all by their agreement;
a. Apparent contract c. Relatively simulated contract
b. Absolutely simulated contract d. Deed of assignment
79. It refers to a joint obligation;
a. One in which each debtor is liable for the entire obligation, and each creditor is entitled the whole
obligation;
b. One in which either one of the parties is indispensable and the other is not necessary.
c. One in which the obligation of one is a resolutory condition of the obligation of the other, the non-
fulfillment of which entitles the other party to rescind the contract.
d. One in which each of the debtors is liable only for a proportionate part of the debt and each of the
creditor is entitled only for a proportionate part of the credit;
80. It is not a source of liability which we entitle the injured party to damages;
a. Culpa Aquiliana or negligence committed in the performance of a spontaneous act.
b. Mora or delay
c. Dishonesty, malice or bad faith in the performance of an existing valid obligation.
d. Contravention of the tenor of the obligation.
81. A intimidated B to marry A’s daughter. After a year, B would like to file an action for annulment but
could not do so because A was around to intimidate him. The marriage contract is:
a. Rescissible c. Void
b. Voidable d. Unenforceable
82. The following, except one, are the characteristics of void or inexistent contract. Which is the exception?
a. The defense of illegality of a contract is available to third persons whose interest is not directly
affected.
b. They are not subject to ratification
c. The right to raise defense of illegality cannot be waived
d. The action for defense for declaration of their nullity or inexistence of the contract does not
prescribe.
83. A is obliged to give his bracelet to B on October 30, 2009. However, on August 1, 2009, B borrowed the
ring of A with an agreement that B will return the ring on September 30, 2009. On September 30,
2009, A demanded the return of the ring but B refused claiming compensation, which of the followings
is correct?
a. A is entitled to claim compensation.
b. B is entitled to claim compensation.
c. A may oppose the compensation being claimed by B.
d. Either A nor B can claim compensation.
96. D and C are the owners of neighboring stalls in Divisoria. D got sick and had no one to tend to his store
which contained some perishable items. When C noticed that D had not been around already for almost
a week, C had the perishable items owned by D placed in a cold storage to preserve them. C incurred P1,
000.00 for the purpose.
a. D must be reimburse P 1,000.00 to C since he has benefited by the act of C.
b. D has no obligation to reimburse C since he did not authorize C to place the perishable items in a
cold storage.
c. D must be reimburse P 1,000.00 to C because C had an authority to do so they being neighbors.
d. D need not reimburse P 1,000.00 to C because no one should intrude into the affairs or business of
another.
97. Negotiorum gestio and solutio indebiti are examples of:
a. Quasi-delict c. Quasi-tradition
b. Quasi-contract d. Quasi-relation
98. D stole the carabao of C. D was arrested, tried and convicted. He was ordered by the court to return the
carabao. D’s obligation to return the carabao is an obligation arising from:
a. Quasi-contract c. Crime
b. Quasi-delict d. Law
99. D and his playmates were playing baseball on a vacant lot. When D took the bat, he struck so hard that
the ball flew and broke the glass window of N, his neighbour. In this case, D shall be liable to N for
damages arising from:
a. Quasi-delict
b. Quasi-contract
c. Crime
d. D is not liable at all, because the damage to the window was accidental.
100. D, 30 years old, asked B, a 10-year old boy, to climb a coconut tree with a promise to give him P5.00 for
every coconut picked. B climbed the tree but he fell and died. D is obliged to pay the damages to the heirs
of B on the basis of:
a. Quasi-delict
b. Quasi-contract
c. Acts and omissions punished by law.
d. D is not liable because it was not through his negligence that B fell to his death.