April 30, 2021

1.) Reyna makes an offer to Andres on January 10, 2020. Andres makes known his acceptance in a letter sent January 12, 2020
and received by Reyna on January 20, 2020. Meantime, on January 15, 2020, Reyna became insolvent. Which is correct?  *

a. The contract is void the offer being ineffective.

b. The contract is voidable because one party is insolvent.
c. The contract is voidable because one party is incapacitated.
d. There is already a meeting of minds, the contract is perfected.

2.) Which of the following elements the absence of which there cannot be a contract? *
a. Special elements.
b. Natural elements.
c. Essential elements.
d. Accidental elements.
3.) Although contracts bind only contracting parties, their assigns and their heirs, in the following instances, third persons are bound
thereby. Which is the exception? *
a. In contract of sale or lease
b. In contracts creating real rights.
c. In case of stipulation pour autrui.
d. In contracts intended to defraud the creditors.
4.) Which of the following does a qualified acceptance constitute? *
a. Counter-offer.
b. An absolute acceptance.
c. A perfection of the contract.
d. A meeting of minds between the parties.
5.) What does business advertisements of the things for sale constitute? *
a. Definite offer.
b. Counter-offer.
c. Invitation to make an offer.
d. Absolute acceptance of the offer.
6.) "D" lost in gambling and as payment, executed a promissory note in favor of the winner "C". "C" then assigned the note to "A".
May "A" successfully recover from "D"? *
a. No, because the contract is not written.
b. Yes, because the parties are mandated to stand by their word.
c. Yes, because the contract is freely entered into to by both parties.
d. No, because the promissory note is void, being contrary to law, morals.
7.) What is the legal effect of contracts entered into in a state of drunkenness or during hypnotic spell? *
a. Void.
b. Voidable.
c. Rescissible.
d. Unenforceable.
8.) What is the proper remedy if mistake, fraud or accident has prevented a meeting of the minds of the parties? *
a. Reformation.
b. Rescission.
c. Annulment.
d. Resolution.
9.) The following are real contracts. Which is the exception? *
a. Contract of pledge.
b. Contract of agency
c. Contract of deposit.
d. Contract of commodatum.
10.) Which of the following extinguishes an action to annul a voidable contract? *
a. Estoppel.
b. Novation.
c. Rescission.
d. Ratification.
11.) "A", without authority from "B", sold the latter's car in the name of the latter. What is the effect on the sale? *
a. Void.
b. Voidable.
c. Rescissible.
d. Unenforceable.
12.) "D" borrowed a sum of money from "C" with a certain rate of interest. "C" now wants to increase the rate of interest without
the consent of "D". What principle in contracts prohibits "C" from doing so? *
a. Relativity of contracts.
b. Mutuality of contracts.
c. Autonomy of contracts.
d. Obligatory force and compliance in good faith.
13.) I. Dolo incidente entitles the person against whom it was employed to the right to seek the annulment of the contract. II. Dolo
causante entitles the person against whom it was employed to the right to ask for damages. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
14.) In an "invitation" to bid, "B" proposes the following: "I will buy the property for P100,000.00 and if the bid of any other offeror
shall be considered the best in terms of amount and conditions, I am equal to that offer." Which is correct? *
a. The offer is considered a counter-offer.
b. This is a continuing offer which is very certain.
c. The advertiser is not bound to accept the highest bidder.
d. The offer is speculative, because it cannot be considered as against another offer which is certain.
15.) "A", director of X Corporation, through an agent bought the shares of stocks of another stockholder without revealing to the
seller stockholder that negotiations were in progress to enhance the value of the shares. What is the effect on the sale? *
a. Voidable, due to the fraud, concealment of "A" against a fellow stockholder.
b. Void, because of fraud committed by "A" against the other stockholder.
c. Voidable, because of mistake on the part of the seller stockholder.
d. Rescissible because of the damage suffered by the seller.
16.) "L" entered into a contract of mortgage with "X". "T", the clerk of "L", typed the document. Due to "T's" negligence, the
document made was that of sale instead of mortgage. Which is correct? *
a. The remedy is annulment.
b. Reformation of instrument is proper.
c. Parties may go to court for interpretation.
d. Parties may enforce their right because it is enforceable.
17.) "A" sold to "B" a genuine Fundador brandy. However, upon delivery, the former substituted a fake. "B" now wants to annul the
sale. Which is correct? *
a. There is dolo incidente, therefore, it is annulled.
b. The contract is void ab initio, therefore, it can be annulled.
c. The contract can be annulled, since it is voidable due to fraud.
d. The contract cannot be annulled because it is only incidental fraud.
18.) "A" sent "B" a letter wherein the former offered to sell his car to the latter for P1 M. "B" signed to show intention that he may
buy the same. In "A's" letter, he gave "B" two weeks to raise the amount. After one week, "A" raised the price to P1.5 M. Can "B"
compel "A" to accept the P1 M first offered by "A" and deliver him the car?
a. No, because there was no acceptance yet of the offer.
b. Yes, since there was already an offer and acceptance.
c. Yes, because "A" cannot change his offer without the consent of "B".
d. Yes, because "A" cannot withdraw the offer within two weeks as he is under estoppel.
19.) B Company bought out a competitor, C Corporation, with a stipulation that C Corporation should not thereafter engage in any
business in the Philippines unless consented to and approved by B Company. Which is correct? *
a. The stipulation is defective subject to ratification.
b. The stipulation is void because it is contrary to public policy.
c. The stipulation is valid because the parties are free to enter into any stipulation, terms and conditions.
d. The stipulation is unenforceable as there was no showing that the sale was done in writing.
20.) What kind of contract is the one prepared by a real estate company for the sale of real estate, or by an insurance company,
where the buyer signifies his consent by signing the contract? (If he does not desire to enter into the contract, it is his privilege to
refuse.) *
 a. Contract of adhesion.
b. Aleatory contract.
c. Ordinary contract.
d. Auto-contract.

May 7, 2021
1.Which of the following refers to the essential or impelling reason why the parties enter into a contract? *
a. Motive.
b. Profit.
c. Cause.
d. Object.
2.) What effect does the statement of a false cause have in contracts? *
a. Void.
b. Voidable.
c. Rescissible.
d. Unenforceable.
3.) Three of the following are void contracts. Which is the exception? *
a. Contracts to prevent a known supporter of a political rival from voting for his candidate for a valuable consideration.
b. Contracts with valid consideration but with unlawful motives.
c. Contracts where the cause is immoral.
d. Absolutely simulated contracts.
4.)What is the effect of an agreement in restraint of trade or establishing monopoly? *
a. Unenforceable.
b. Perfectly valid.
c. Voidable.
d. Void.
5.) I. Dolo incidente entitles the person against whom it was employed to the right to seek the annulment of the contract. II. Where
the parties are in pari delicto (mutual guilt), the contract would be considered valid. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
6.) I. "S" sold to "B" in a private instrument his land. Later, "B" wanted to have the sale registered but registration requires a public
instrument. In here, "B" may compel "S" to execute the needed public instrument. II. "S" sold to "B" orally his land. After "B" paid
"S", he wants to register the land in his name but he needed a public instrument of sale. In here, "B" may compel "S" to execute the
needed public instrument. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
7.) Which of the following refers to a remedy in equity by means of which a written instrument is made or constructed so as to
express or conform to the real intention of the parties when some error or mistake has been committed? *
a. Ratification.
b. Resolution.
c. Reformation.
d. Rescission.
8.) Which of the following instruments is subject to reformation? *
a. Wills.
b. Onerous donation.
c. When the real agreement is void.
d. Simple donation inter vivos wherein no condition is imposed.
9.) "S" owns an oil paining. Being in need of money, "S" sold the painting to "B" for P1,000.00. After the sale, it was discovered that
the painting was valuable and worth P5,000.00. Which is correct? *
a. "S" may rescind the contract due to lesion or inadequacy of cause.
b. "B" is entitled to the benefit of the contract because it is valid.
c. "S" may annul the contract on the ground of error.
d. "S" may annul the contract because of fraud.
10.) I. If the cause is not stated in the contract, it is presumed to be unlawful. II. The one who alleges that the cause was his gambling
losses in a prohibited game has the burden to prove that the game was indeed a prohibited one because the cause is presumed to
be lawful. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
11.) Without authority from "A", "B" sold in "A's" name the land of "A" to "X" who was in good faith. What is the effect on the
contract? *
a. Void, because "B" was not the owner at the time of the perfection of the sale.
b. Unenforceable, because "B" had no authority to sell "A's" land.
c. Voidable, because of the fraud committed by "B" against "A".
d. Valid sale, provided "B" is the owner upon delivery.
12.) "A" threatened to kill "B" if the latter would not marry the former's daughter who was pregnant with "B's" child. Intimidated,
"B" married "A's" daughter against his will. Which is correct? *
a. The contract is voidable due to intimidation even if employed by a third person.
b. The contract is not voidable because the threat was made by a third person not by one of the parties.
c. The contract is not voidable because the claim for marriage is just or legal and therefore consent is not vitiated.
d. The contract is not voidable since "B" has to answer for it is his fault that "A's" daughter becomes pregnant.
13.) In a contract of sale executed by "S" and "B", it appears that "S" sold his motor vehicle to "B" for P50,000.00. It turned out,
however, that "S" has three motor vehicles - Gallant valued P80,000.00, Hi-ace van valued P70,000.00, and a jeep valued at
P60,000.00. Which is correct? *
a. The parties can ask for interpretation because the word motor vehicle is ambiguous.
b. The contract shall be reformed because there was mistake.
c. The parties can ask for annulment of the contract.
d. There is no contract.
14.) I. A donation of real property evidenced by a private instrument and accepted by the donee is voidable and may be a subject of
reformation of instrument. II. A donation of real property in a public instrument but accepted in a private instrument by the donee is
voidable and may be a subject of reformation of instrument. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
15.) "A" entered into a contract of mortgage. However, as written, the document states that it is a contract of sale with right of
repurchase, the error due to the fault of the clerk/typist. Which is correct? *
a. The contract of sale must be annulled since it is voidable.
b. The instrument has to be enforced as it is the proof of the agreement between the parties.
c. The instrument may be reformed because it does not express the true agreement of the parties.
d. Because of the negligence of the parties in signing without first reading the instrument, they are bound by the contents of
the same.
16.) Ray, bachelor CPA, impregnated to Bebe Gandang Reyna. Upon learning this, Juan Reyna, the father of Bebe, was able to force
Ray to marry her under pain of being sued in the Professional Regulations Commission for revocation of his license. Which is correct?
*
a. The defective marriage may, however, be ratified.
b. There was no defect, the marriage was perfectly valid.
c. The marriage may be annulled on the ground of force or violence.
d. The marriage may be annulled on the ground of threat and intimidation.
17.) "A" orally sold to "B" his house at 16 Kiko St., Malate, Manila. In the written deed of sale, both forgot the true number of the
house and instead wrote on the contract. "18 Kiko St., Malate, Manila." What is the remedy? *
a. Reformation of instrument because of mutual error.
b. Annulment of a voidable contract because of mutual mistake.
c. Reformation of instrument because of lack of meeting of minds.
d. Declaration of nullity of the contract because of the uncertainty of the intention as to the object.
18.) I. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not state
their true intention, the former may ask for the annulment of the instrument. II. If through mistake, the seller sold for P1,000,000.00
but the buyer thought that he was buying for P500,000.00, the proper remedy is reformation of the instrument. *
a. Only I is true.
b. Only II is true.
c. Both are true.
 d. Both are false.
19.) When his father died, but before delivery of the property to him, a son sold his share of the property inherited. Which is
correct? *
a. Sale is unenforceable, for being sold without authority.
b. Sale is valid, for being a sale of existing inheritance.
c. Sale is void, for being a sale of future inheritance.
d. Sale is voidable, for being sold by mistake.
20.) A dying man sold his parcel of land consisting of more than 18 hectares to his houseboy for only P700.00 by a thumbmark of the
former. What is the effect on the contract? *
a. Unenforceable, the sale was not in writing.
b. Void, because the sale is shocking to the conscience.
c. Voidable, because the dying man committed a serious mistake.
d. Valid, because lesion or inadequacy of cause shall not invalidate a contract.

May 14, 2021

1.) Which of the following is the remedy where damage is caused to either of the contracting parties or to a third person? *
a. Rescission.
b. Annulment.
c. Reformation.
d. Ratification.
2.) "A" made a donation to "B". Later, "A" contracted several debts. What "A" has left as assets are much less than this present
liabilities. May the donation be rescinded? *
a. Yes, because the donation is rescissible being in fraud of creditors.
b. No, if A gave a guaranty or security for his debts.
c. Yes, because A has become insolvent after the donation.
d. No, because the debts were incurred after the donation has been made.
3.) I. The action for rescission is subsidiary, it cannot be instituted except when there is no other legal means to obtain reparation for
damages suffered. II. A rescissible contract is void; it is not valid until ratified. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
4.) To defraud his creditor, "A" sold his house to "X". However, when the creditor wanted to collect his credit, a third person lent "A"
enough money. Is the sale rescissible? *
1. Yes, because it was entered into in fraud of creditors.
2. No, because the creditor can collect the credit due him.
3. Yes, because the debtor was in bad faith when he sold the house to "X".
4. No, because the debtor has become in good faith when he was lent enough money to pay his debts.
5.) I. Just like voidable and unenforceable contracts, rescissible contracts may also be ratified. II. Five years after, a rescissible
contract was brought for its rescission by a person who was neither a ward nor an absentee at the time of the transaction. The
rescission will be allowed. *
1. Only I is true.
2. Only II is true.
3. Both are true.
4. Both are false.
6.) I. Guardian of "W", sold "W's" house valued at P50,000 for P37,500, or a lesion of exactly 1/4 of the value. II. "S" sold his house
valued at P50,000 for only P10,000 because "S" did not know the true value of the house. *
1. Only I is rescissible.
2. Both contracts are rescissible.
3. No. 2 is voidable because there is an error.
4. Both contracts are valid and enforceable.
7.) Three of the following are rescissible. Which is not? *
a. Contract of sale and the price is unusually inadequate resulting to lesion.
b. Those made to defraud creditors when the latter have no other means to recover their claims.
c. Sale of property under litigation made by defendant without the consent of the plaintiff or authority of the court.
d. Those agreed upon in representation of absentees, if the absentee suffers lesion by more than 1/4 of the value of the
property subject of the contract.
8.) "S" sold his parcel of land only for P1 M although the value of the same is P2 M. He thus suffered a damage or lesion in the sale
due to the inadequacy of the price. The contract is therefore which of the following? *
 a. Unenforceable.
b. Not defective.
c. Rescissible.
d. Voidable.
9.) The following are attributes of a rescissible contract. Which is the exception? *
a. It is valid until rescinded.
b. Damage or lesion if absolutely material.
c. It is a principal remedy of the creditor to collect his credit.
d. Third person whose interest is affected may ask for rescission.
10.) To defeat his creditors, "A" sold his real property to "B". "B" now seeks to register the sale. "X", a creditor seeks to prevent the
registration on the ground that it is a rescissible contract. Despite "X's" objection, may the land be registered in "B's" name? *
a. Yes, because the contract although voidable is valid and binding.
b. No, because the sale is void and after annulment is not binding.
c. Yes because the contract although rescissible is valid before rescission.
d. No, because the contract is rescissible and therefore without effect.
11.) I. In case of doubt, a contract purporting to be sale shall be construed as mortgage. II. Where the terms and provisions of a
contract are clear and leave no doubt as to the intention of the contracting parties, the literal meaning of its stipulation shall control.
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
12.) Which of the following contracts is NOT rescissible? *
a. Those where one of the parties is incapable of giving consent to a contract.
b. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them.
c. Those executed in representation of an absentee, if the latter suffer a lesion more than 1/4 of the value of the object of the
contract.
d. Those which are entered into by guardians whenever the wards whom they represent suffer a lesion of more than 1/4 of
the value of the object of the contract.
13.) "D", fearing that his creditor "C" would go after his only parcel of land to satisfy his claim for payment of "D's" debt, sold his land
to "X", who did not know of "D's" intention. Which is correct? *
a. "C" cannot ask for the rescission of the sale.
b. "C" can file an action for the rescission of the sale.
c. "C" can ask for annulment of the sale as this is a voidable contract.
d. "C" may ask for damages against "D" since he was damaged by the sale.
14.) "A" sold "B" his house including "all the furniture therein." Suppose part of the furniture belonged to a relative of "A" who had
asked him for permission to leave them temporarily, would such furniture be included? *
a. Yes, because the terms of the contract are clear and leave no doubt.
b. No, because although they are subject of the contract, "A" had no authority from "B".
c. Yes, because the term "all" means everything that is within the premises of the property.
d. No, because the term "all" is general and should not be understood to comprehend things which the parties did not intend
to agree
15.) I. Obscure terms in an insurance policy which is a contract of adhesion are construed strictly against the insured, and liberally in
favor of the insurer. II. If authority is given "to exact payment by legal means", it includes authority to file actions in court for the
recovery of sums of money. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
16.) "A" needs a fountain pen and "B" gives it to him freely, which is correct? *
a. It is a commodatum because this transmits lesser rights than a donation.
b. It is an implied sale by sample which requires payment if not returned.
c. It is neither a donation, a commodatum, nor sale by sample.
d. It is a donation because it is given freely and gratuitously.
17.) I. A rescissible contract cannot be attacked collaterally (meaning, by third persons) in the course of a land registration case, but
the court may allow the third person to register his reservation of the right to rescind. II. Rescission is a proper remedy to rescind a
fictitious contract. *
a. Only I is true.
b. Only II is true.
c. Both are true.
 d. Both are false.
18.) A piece of land was the subject of litigation between "M" and the City of San Pablo. After the case had been decided in favor of
"M", he sold it to another. Which is correct? *
a. The sale is void.
b. The sale is voidable.
c. The sale cannot be rescinded.
d. The sale can be rescinded on the ground that it was in litigation.
19.) I. Payment by an insolvent by giving a deed of sale although the debt was not yet enforceable is rescissible. II. An insolvent
paying a debt that is due and demandable by giving him a piece of land is rescissible. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
20.) "A" bought real property from "B". "A" brought action to rescind the contract on the ground of non-delivery of the property.
Does "B" have to give also the fruits received in the meantime? *
a. Yes, because in rescission, the object of the contract with its fruits must be returned.
b. No, because fruits may be returned only when delivery of the thing sold has been made.
c. Yes, because the fruits of the real property are accessories or accessions.
d. No, because fruits are not part of the stipulation.

MIDTERM EXAM (Obligations)

1.) "O", needlework manufacturer, hired "A" for two years, on the condition that for five years, the latter should not engage in
competitive needlework manufacture. After one year, the latter left for health reasons. Shortly afterwards, after regaining his health,
he competed with his former employer, who now seeks to restrain him from such competition. Is the agreement valid? *
a. Yes, the agreement was valid, as both contracting parties may stipulate whatever they want.
b. No, the agreement was invalid and is considered an unreasonable restraint of trade.
c. Yes, the agreement was valid and is a reasonable restraint for it was only for 5 years.
d. No, the agreement was invalid as there was no payment for the restriction.
2.) The following are essential elements of a legal wrong or injury. Which is the exception? *
a. Damage or injury to the plaintiff.
b. A legal right in favor of the plaintiff.
c. A legal obligation on the part of the defendant to respect the right.
d. An act or omission by the defendant resulting to injury or damage.
3.) Is a quasi-contract an implied contract? *
a. Yes, because a quasi-contract is "as if" a contract.
b. No, because a quasi-contract is created by operation of law.
c. Yes, because a quasi-contract involves an obligation to pay.
d. No, because in quasi-contracts, there is no meeting of the minds.
4.) In the following, the obligation to deliver fruits arise. Which is the exception? *
a. In obligations to give arising from law, quasi-delict and quasi-delict, by the specific provisions of the law.
b. If there is a term or a condition, then from the moment the term arrives or the condition happens.
c. If there is no term or condition, then from the perfection of the contract.
d. In a contract of sale, always from the perfection of the contract.
5.) "X" by mistake delivered to "A" and "B" a sum of money which should have been delivered to "C" and "D". "X" now demands the
return of the same from "A" and "B". What is the liability of "A" and "B"? *
a. "A" and "B" shall be liable solidarily.
b. "A" and "B" shall be liable jointly.
c. "X" has no right to recover.
d. They are not liable.
6.) When the thing deteriorates pending the fulfillment of the suspensive condition without the fault of the debtor, who bears the
impairment? *
a. Partly by the debtor and partly by the creditor.
b. By the part who caused the deterioration.
c. By the creditor.
d. By the debtor.
7. "D" obliged to give "C" a specific watch. The parties agreed that "D" may give a specific bag as a substitute. Which of the following
is true? *
a. If the bag is lost through a fortuitous event before substitution, the oblidation is extinguished.
b. If the watch is lost through a fortuitous event before substitution, the obligation is extinguished.
 c. If the watch is lost through a fortuitous event after substitution, the obligation is extinguished.
d. If the watch is lost through the debtor's fault after substitution, the debtor shall pay damages.
8. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of whom? *
a. Both the creditor and debtor.
b. The creditor.
c. The debtor.
d. The third party.
9. "A" owes "B" P10,000. With the consent of both, "C" pays "B" P5,000. Now "B" and "C" are the creditors of "A" to the amount of
P5,000 each. If "A" has only P5,000 money to pay, which is correct? *
a. "B" and "C" should divide the P5,000 equally.
b. "A" may choose whom to pay.
c. "C" should be preferred.
d. "B" should be preferred.
10. Which of the following refers to an obligation where only one prestation has been agreed upon but the debtor may render
another in substitution? *
a. Conjoint obligation.
b. Facultative obligation.
c. Simple obligation.
d. Alternative obligation.
11. A mango tree in the land of "O" is reclining towards the road. All of a sudden without a storm or an earthquake or even a strong
wind, the tree falls hitting a car belonging to "Y" causing a P20,000 damage. What is the source of obligation of "O" to "Y"? *
a. Law.
b. Quasi-contract.
c. Contract.
d. Quasi-delict.
12. Unless the law or the stipulation of the parties requires another standard of care, which of the following is required of the
obligation to give a thing? *
a. Extra-ordinary diligence.
b. Degree of care agreed upon by the parties.
c. Diligence of a good father of a family.
d. Diligence of a good family of a father.
13. This is a promissory note: "We promise to pay A, B, C, and D the sum of P24,000. (Sgd.) E, F and G. Which is correct. *
a. F is obliged to pay A P2,000.
b. F is obliged to pay A P6,000.
c. F is obliged to pay A P8,000.
d. F is obliged to pay A P24,000.
14. Which of the following is NOT a requisite needed in order that obligation shall be extinguished by loss or destruction of the thing
due? *
a. When the thing lost is generic.
b. When the thing is lost without the fault of the debtor.
c. When the thing is lost before the debtor has incurred delay.
d. When the thing lost is specific.
15. Which of the following refers to a situation where the debtor abandons and assigns all his properties in favor of his creditor for
the latter to sell to satisfy his credits? *
a. Remission.
b. Expromission.
c. Dation in payment.
d. Payment by cession.
16. Which of the following is NOT an element of legal compensation? *
a. There are two or more debts of the same kind.
b. Debts to be compensated are due and demandable.
c. There is a controversy or adverse claim over any debts to be compensated.
d. There are two or more persons who are creditors and debtors of each other.
17. Obligations are considered solidary under the following. Which is the exception? *
a. When the law expressly provides solidarity.
b. When the nature of the obligation requires solidarilty.
c. When solidarity is expressly stipulated in the obligation.
d. When the prestation is indivisible and there are two or more debtors and creditors.
18. When shall payment of the obligation by a solidary debtor 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 to him.
19. "A" is indebted to "B" for P20,000. "X" is the guarantor of "A". "B" is also indebted to "A" for P8,000. How much will "X" be liable
as a guarantor if "B" sues "A" and "A" cannot pay? *
a. P12,000.
b. P20,000.
c. P8,000.
d. X has no liability.
20. The creditor shall have a right to indemnity for damages when through the fault of the debtor, all things which alternatively the
object of the obligation have been lost or compliance of the obligation has become impossible. Which of the following shall be the
basis of the indemnity? *
a. The value of the least expensive thing.
b. The value of the most expensive thing.
c. The value of the last thing which disappeared.
d. The value of the first thing which disappeared.
21. On October 4, 2020, "A" is indebted to "B" for P50,000 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" agreed to the proposal. On October 25, 2020, "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" insolvency. Which is correct? *
a. "A" is liable because he is presumed to have guaranteed "X's" solvency.
b. "A" is liable because he did not exercise due diligence in determining the insolvency of "X."
c. "A" is liable because "X" agreed to the proposal to make himself solidarily liable for the obligation.
d. "A" is not liable because he does not know the insolvency at the time of delegation and neither was the insolvency of public
knowledge.
22. "X" and "Y" are solidary debtors of "A", "B", "C" and "D", joint creditors to the amount of P8,000. How much can "A" collect from
"X"? *
a. "A" could recover P1,000 only from "X".
b. "A" could recover P8,000 from "X", who in turn has to give "B", "C" and "D".
c. "A" could recover P4,000 from "X". "A", in turn, has to give "B", "C", and "D" P1,000 each.
d. "A" could recover P2,000 only from "X".
23. When two persons are reciprocally debtors and creditors of each other, what is present? *
a. Consignation.
b. Merger.
c. Compensation.
d. Confusion.
24. "E" is obliged to give "R" a 2019 specific car with plate number BA123 on September 30, 2020. On October 10, 2020, "E" did not
yet deliver the car when it was totally destroyed by an earthquake on such date. Is "E" still liable? *
a. No. The obligation is extinguished because it was lost due to fortuitous event and no demand was made by "R".
b. Yes. "E" is in legal delay. "R" can claim damages.
c. Yes. "R" can instead demand for another car of equivalent value from "E."
d. No. Even if "E" is already in default, he can plead impossibility of performance.
26. "A" owes "X" P50,000 payable on or before June 30, 2020. "S", who is not a party to the contract and without the consent and
against the will of "A", paid "X" the P50,000 on April 2020 when the prevailing rate of interest was 12% per annum. Which is correct?
a. "S" can ask reimbursement from "A" in the amount of P50,000.
b. "S" can ask refund from "X" P50,000 plus 12% interest because the payment by "S" was against the will of "A".
c. "S" can ask reimbursement from "A" in the amount of P50,000 plus 12% interest from April to June 30, 2020.
d. "S" cannot ask reimbursement from "A" because the payment by "S" is without the consent and against the will of "A".

27. Which of the following extinguishes an obligation because of the passage of time? *
a. Fulfillment of resolutory condition.
b. Arrival of a resolutory period.
c. Prescription.
d. Rescission.
28. I. Every person criminally liable for an act or omission is also civilly liable for damages. II. In quasi-delict, there are generally two
liabilities: criminal and civil, while in crime, there is only civil liability. *
a. Only I is true.
b. Only II is true.
 c. Both are true.
d. Both are false.
29. "X" had a savings deposit with BDO in the amount of P5 million. Subsequently, "X" obtained a car loan from BDO in the amount
of P1.2 million, payable in 12 equal monthly installments. "X" issued post-dated checks, each in the amount of P100,000 for the 12
monthly installments. On the third, fourth, and fifth months, the corresponding checks bounced. Is compensation applicable? *
a. Yes, compensation is applicable because a bank deposit is a contract of loan, a creditor-debtor relationship exists.
b. No, compensation is not applicable as "X" and BDO are not mutually debtor and creditor of each other.
c. Yes, compensation is applicable because a bank deposit is a contract of depositum.
d. No, compensation is not applicable because what is applicable is confusion.
30. "X" obtained a loan of P100,000 from "Y", payable within one year. Ten days after maturity date, "X" tendered a manager's check
to "Y." The latter refused to accept payment on the ground that he wanted payment in cash. Is "Y's" refusal justified? *
a. Yes, because the delivery of a check discharges an obligation.
b. No, because a manager's check is legal tender.
c. Yes, because a manager's check or ordinary check, is not legal tender, and an offer thereof is not a valid tender of payment.
d. No, because an offer of a manager's check in payment of a debt is a valid tender of payment and may not be refused receipt
by the creditor.
31. "S" sold his cat to "B" for P2,000. No payment has been made and the sales document does not provide for the date of delivery.
Before delivery and payment, the cat gave birth to a kitten. Which is correct? *
a. "B" should pay an additional amount for the kitten to be entitled to it.
b. "B" is entitled to the kitten which was born after the perfection of the sale.
c. "S" is entitled to the fruit because it was born before his obligation to deliver the cat.
d. "S" is entitled to the fruit as "B" has not yet paid the price.
32. The following are the remedies of the unpaid creditor in a specific real obligation. Which is the exception? *
a. Ask that the obligation be complied at the expense of the debtor.
b. Demand rescission or cancellation plus damages.
c. Demand for damages only.
d. Demand specific performance plus damages.
33. Which of the following refers to the fruits of a thing or additions to or improvements upon a thing, such as rents of a building,
trees on a land? *
a. Accessions.
b. Accessories.
c. Components.
d. Members.
34. In the following obligations, the court shall order the same to be executed at the expense of the obligor, plus damages. Which is
the exception? *
a. The debtor performs his personal obligation but contrary to the terms thereof.
b. The debtor performs his personal obligation but in a poor manner.
c. The debtor fails to perform his personal obligation
d. The debtor fails to deliver his real obligation.
35. "D" promised to pay "C" the sum of P200,000 on or before November 30, 2020, "without the need of any demand." November
30, 2020 came and went, "D" did not pay. Which is correct? *
a. "D" is not in legal delay, no demand was made; hence, is not liable for damages.
b. "D" is in legal delay, for there was stipulation by the parties, he is liable for damages.
c. "D" is in ordinary delay, because no demand was made, but he is liable for damages.
d. "D" is in legal delay, for there was stipulation by the parties, but he is noliable for damages.
36. The following are examples of causal fraud. Which is an incidental fraud? *
a. Delivering 20 bottles of wine to a customer but not in the same quality as promised by the seller.
b. Falsely representing to sell to a customer 20 bottles of California wine when the source is only local.
c. Convincing a customer that the necklace is silver, when it is in fact only from cheap metal.
d. Falsely representing to sell to a customer a diamond ring, when it is in fact only from a glass.
37. The requisites in order to absolve oneself from fortuitous event are the following. Which is the exception? *
a. The event must be independent of the human will.
b. The event could not be foreseen, or if foreseen, is inevitable.
c. The debtor must have participation in, or the aggravation of, the injury to the creditor.
d. The event must be of such a character as to render it impossible for the debtor to comply with his obligation in a normal
manner.
38. "I will support you from the time your father dies." What is the nature of condition or period? *
a. Suspensive period.
b. Suspensive condition.
 c. Resolutory period.
d. Resolutory condition.
39. "S" stole a specific car of "B". Upon conviction by the court, "S" could not anymore return the car because it was ravaged by an
accidental fire. Which is correct? *
a. "S's" obligation to return the car is not extinguished, because the obligation arises from a crime.
b. "S's" obligation to return the car is extinguished, because it is lost due to a fortuitous event.
c. "S's" obligation to return the car is extinguished, because "S" has no fault or negligence.
d. "S's" obligation to return the car is not extinguished, because genus never perishes.
40. In the following, the obligation is deemed to be one with a period, where the court will fix the period. Which is the exception? *
a. "When his means permit him to do so."
b. "When I am in a position to pay."
c. "From time to time."
d. "If I want."
41. "X" agreed to give "Y" a 5% commission if "Y" could sell "X's" land at a certain price. "Y" found a buyer whom he convinced to buy
the land. But "X" wanted to evade "Y's" commission, so he himself sold the property to the buyer without the aid of "Y". Which is
correct? *
a. "Y's" due performance of his undertaking is deemed fulfilled; hence, he is entitled to the commission.
b. "Y's" due performance of his undertaking is not fulfilled; hence, he is not entitled to the commission.
c. "Y's" due performance of his undertaking is fulfilled, but he is not entitled to the commission.
d. "Y's" due performance of his undertaking is not fulfilled, but he is entitled to the commission.
42. On the due date, "D" could not pay "C" his obligation in the amount of P500,000. "D" owns a car worth about P250,000, and "X",
a third person, is indebted to him for P50,000. Before the due date of the obligation, "D" sold his land worth P200,000 to "Y". Under
the circumstances, what is NOT a remedy of "C"? *
a. He may bring an action for the collection of the amount of P500,000 with a right to damages.
b. He may ask the court to order "X" not to pay "D" so that payment may be made to him ("C").
c. He may ask for the attachment of "D's" car if despite the judgment, 'D" still cannot pay.
d. He may ask the court to give him the proceeds of the land sold by "D" to "Y".
43. In the following, an obligation is demandable at once. Which is the exception? *
a. When the obligation is pure.
b. When the obligation is subject to a resolutory period.
c. When the obligation is subject to a resolutory condition.
d. When the obligation is subject to a suspensive condition.
44. In the following, the obligation is valid. Which is the exception? *
a. Where resolutory condition depends upon the will of the debtor.
b. Where suspensive condition depends upon the will of the debtor.
c. Where suspensive condition depends upon the will of the creditor.
d. Where suspensive condition depends upon chance or upon the will of a third person.
45. I. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is
incumbent upon him. II. The parties may validly enter into an agreement that violation of the terms of the contract would cause
cancellation thereof even without judicial intervention, or permission, even if there is no written notice sent to the other party
informing him of the rescission. *
a. Only I is true.
b. Only II is true.
c. Both are true.
d. Both are false.
46. In the following, the debtor shall lose every right to make use of the period. Which is the exception? *
a. When the debtor violates any undertaking in consideration of which the creditor agreed to the period.
b. When before the obligation has been contracted, the debtor becomes insolvent, which is known.
c. When he does not furnish the guaranties or securities which he has promised.
d. When the debtor attempts to abscond.
47. The following obligations are indivisible. Which is the divisible one? *
a. To sing a song.
b. To give a particular house.
c. Payment of taxes within a definite period.
d. To teach Obligations and Contracts for one year.
48. I. In dation in payment, the debtor is presumed to be insolvent; while in cession, the debtor is solvent at the time of assignment.
II. In dation in payment, the creditor does not become the owner of the thing given by the debtor; while in cession, the creditors
only acquire the right to sell the thing and apply the proceeds to their credits proportionately. *
a. Only I is true.
 b. Only II is true.
c. Both are true.
d. Both are false.
49. "D" borrowed from "C" P10,000 payable after five years. On the maturity of the obligation, the value of the P10,000 dropped to
P1,000 in value because of extraordinary inflation. Therefore, its money equivalent five years ago is P100,000 now. How much will
"C" collect from "D" on the date of maturity? *
a. P1,000 because it is the value of the currency at the time of the payment of obligation.
b. P100,000 because it is the value of the currency at the time of the payment of obligation.
c. P100,000 because it is the value of the currency at the time of the establishment of obligation.
d. P10,000 because it is the original value of the currency at the time of the establishment of obligation.
50. "D1", "D2", and "D3" obliged themselves to solidarily give "C" a specific car valued at P1.2 million. On due date, "C" demanded
delivery but the debtors failed to deliver. The next day, while "D1" is still in possession of the car, it was hit by a lightning and
destroyed completely. What is the remedy of "C"? *
a. Proceed against "D3" only.
b. None, the obligation is totally extinguished.
c. Proceed against any of the debtors for the value and damages.
d. Proceed against "D1" only, because he was in possession of the car at the time it was lost.