4.
The following are the characteristics of a
1. The following are the remedies of creditor to
pursue his claims against the debtor, except to:
a. pursue the property owned and in possession of
the debtor
b. exercise all the rights and bring all the actions of
the debtor (accion subrogatoria)
c. impugn the acts which the debtor may have
done to defraud his creditors (accion pauliana)
d. compel the debtor to perform the service in
obligations to do
2. D borrowed P50,000 from C. C dies before he
has collected the debt leaving S his son as heir.
Which of the following statements is correct?
a. S can collect from D although D and C did not
agree that the credit right will pass on the heirs of
C which he wants to remit to C.
b. S cannot collect because the credit right is
personal to C
c. S can collect only if D and C agreed that the
credit right will pass on the heirs of C
d. S cannot collect because the law prohibits the
transmission of the credit right
3. The offer made by the debtor to pay his
obligation to his creditor is known as:
a. consignation
b. tender of payment
c. application of payment
d. dation in payment
facultative obligation except:
a. Only one thing is principally due
b. The right of choice cannot be given to the
creditor
c. The debtor must give the substitute in case the
principal thing is lost due to the debtor's fault
before substitution
d. If the principal is void, the debtor is not obliged
to give the substitute
5. D owes C the following debts: P5,000 due on
January 1; P7,000 on January 5; P8,000 due on
January 10; P10,000 due on January 15 and P5,000
due on January 20. By agreement of the parties, D
was given the benefit of the period. As of January
17, D has not paid any of the debts. He has P5,000
a. D may apply the payment to any of the five
debts
b. D may apply the payment to any of the four
debts that have become due as of January 17
c. D may apply the payment either to the debt due
on January 1 or January 20
d. D may apply the payment only to the debt due
on January 1
6. When two persons are claiming the same right
to collect from you and you are in doubt as to
whom you will give your payment, your remedy so
that you will not pay the wrong person is:
a. tender of payment
b. application of payment
c. dacion en pago
d. consignation
7. D owes C P6,000 which is due on January 10 and
another debt of P12,000 which is due on January
20. Both debts are unsecured and non-interest
bearing and are already due. D, however, has only
P3,000 which he gives to C without informing C as
to which debt the payment shall apply. C also did
not indicate on the receipt he issued to D which of
the two debts the payment shall apply. In this
case:
a. The payment of P3,000 shall be applied to the
debt due on January 10 because it was the first
time to become due
b. The payment of P3,000 shall be applied to the
debt due on January 20 because it is of a greater
amount
c. Payment cannot be applied to either of the two
debts because it is incomplete
d. The payment of P3,000 shall be applied
proportionately in the amount of P1,000 to the
debt due on January 10 and P2,000 to the debt
due on January 20.
8. Mario Marquez executed a promissory note
payable to Pablo Perez signed by the Maker: Mario
Marquez and Guarantor: Gilbert Garcia. Pablo
Perez indorsed the note to Alfonso Abad, Alfonso
Abad to Benito Buenviaje, Benito Buenviaje to
Carlos Cuaresma and Carlos Cuaresma to Gilbert
Garcia. The negotiation of the note to Gilbert
Garcia produced the effect of:
a. extinguishing both the loan and the guaranty
b. extinguishing the loan but not the guaranty
c. extinguishing the guaranty but not the loan
d. neither extinguishing the loan nor the guaranty
9. A contract whose cause is the promise of a thing
or service by the other party is:
a. an onerous contract
b. a gratuitous contract
c. a lucrative contract
d. a remuneratory contract
10. One of the following is not requisite of the
object of a contract.
a. It must be within the commerce of men.
b. If it is a right, it must be intransmissible.
c. It must not be contrary to law, morals, good
customs, public order or public policy.
d. It must be determinate as to its kind or capable
of being made determinate without the need of
the parties entering into a new agreement.
11. The following contracts are required to appear
in a public document for the convenience of the
parties so that they may be registered into the
proper recording office, except:
a. there must be a meeting of minds of the parties
to the contract.
b. the true intention of the parties is not
expressed in the instrument.
c. the failure of the instrument to express the true
intention of the parties is due to mistake, fraud,
inequitable conduct or accident.
d. the contract must be in a public instrument.
12. A contract of sale is not a:
a. principal contract.
b. nominate contract.
c. consensual contract.
d. real contract.
13. W, a woman, agreed to live with H, a man, as
the wife of H without the benefit of marriage in
exchange for the monthly support of P 10,000.00
that H would give to W. Both H and W are single, of
legal age, and there is no legal impediment for
them ot get married. their parents have no
objections to the two getting married. based on the
foregoing information, which of the following
statements is true?
a. The agreement between H and W is valid
because they can legally get married if they want
to.
b. The agreement between H and W is void for
being contrary to morals.
c. H may legally demand that W live with him as his
wife.
d. W may legally demand that H give her the
monthly support of P 10,000.00 that he had
promised.
14. Which of the following contracts is rescissible?
a. Contracts entered into during a hypnotic spell.
b. Contracts entered into in a state of drunkenness.
c. Contracts entered into to defraud creditors
when the latter cannot collect claims due them.
d. Contracts where both parties are incapable of
giving consent.
15. P is a minister of a certain church whose
member include X. X regularly confides in P
because of his personal problems. P is interested in
buying the lot of X and used his position as elder of
the church and confidant to X to convince X to sell
him the lot. Should X sell the lot to P by the reason
o f P taking advantage of his confidential
relationship with X, the contract between them
would likely be voidable because of:
a. intimidation.
b. undue influence.
c. fraud.
d. mistake.
16. S sold a parcel of land to B for P 100,000.00
with paying the said amount immediately.
Although S delivered the transfer certificate title of
the land to B, the parties did not execute any
document at all for the sale except the receipt for
the payment which S issued to B. B now wants to
register the sale with the Register of Deeds.
a. B can compel S to execute a Deed of Sale which
is duly notarized so that B can register the sale.
b. B cannot compel S to execute a Deed of Sale
because the contract is unenforceable.
c. The contract between S and B is void because it
was not in the form required by law.
d. The contract between S and B is rescissible;
hence B can sue for damages.
17. S and B entered into a contract whereby S sold
his car to B for P 100,000.00. Based on the
foregoing, which of the following statements is
incorrect?
a. The contract is voidable if S is 17 years old, and B
is 25 years old.
b. The contract is unenforceable if S is 17 and B is
insane.
c. The contract is void if B, 25 years old, compelled
S, 30 years old, to sign the deed of sale by
threatening to burn the house of S.
d. The contract is rescissible if at the time of sale,
the car was the subject of litigation brought by X
against S to recover the car, and the court and X
did not give their authority of sale.
18. Which of the following contracts is valid and
enforceable?
a. A contract where a party gave his consent in a
moment of drunkenness.
b. A contract where a party gave his consent
because the other party threatened to sue him of
an unpaid debt.
c. A contract where a party gave his consent
because the other party threatened to kill the first
party's house.
d. A contract where there was inadequate cause
attended by mistake.
19. A entered into a contract with B whereby B
agreed not to testify in criminal case filed against A
in exchange for P 5,000.00 to be given by A. The
contract between A and B is:
a. void for being contrary to law.
b. void for being contrary to good customs.
c. void for being contrary to public policy.
d. is valid because there is nothing wrong when
one does not want to testify against another in a
crime.
20. Which of the following must be in writing to be
enforceable as required by the Statute of Frauds?
a. A subscription of 100 shares of stock of a
corporation at P 100.00 per share.
b. A contract for the construction of a building
scheduled to begin 3 months after the execution of
the contract.
c. A contract of lease of an agricultural lot for a
period of 8 months.
d. A contract whereby on agrees to pay another's
debt if the latter defaults in his payment.
21. Under a contract between D and C, D is obliged
to deliver 10 bags of detergent soap to C 10 days
after the execution of their agreement. On due
date, D delivered to C 10 bags of detergent soap
which he mixed with chalk.
a. The contract entered into between D and C is
voidable because of the fraud employed by D.
b. The contract is valid. The fraud employed by D
does not affect the validity of the contract but D is
obliged to pay damages to C.
c. The contract is void because of the fraud
employed by D in the performance of his
obligation.
d. The contract is rescissible because of the
damages suffered by C.
22. Which of the following contract involving real
property is valid and enforceable although not in
writing?
a. Sale of a piece of land for P 50,000.00
b. Lease of an agricultural lot for a period of 2 years
at a monthly rental of P 3,000.00
c. Mortgage of a commercial lot to secure a loan
of P 50,000.00.
d. Donation and acceptance of a residential lot.
23. An insurance policy which, in practice is
prepared by an insurance company and all the
insured has to do is to sign thereon if he agrees
with its terms, is an example of :
a. an auto-contract.
b. a contract of adhesion.
c. a commutative contract.
d. a gratuitous contract.
24. Which of the following contract is rescissible?
a. A sale made by a guardian in behalf of his ward
of the corn harvested from the ward's corn field at
a price of P 50,000.00. The corn had a value of P
60,000.00.
b. A sale of a piece of land made by D to defraud
C, his creditor. The buyer of the piece of the land
was aware of the fraudulent intention of D when
D made the sale.
c. A donation made by D to X of
his Guess wristwatch worth P 3,000.00 during a
party where D was was in a state of drunkenness. X
wrote his acceptance of the donation on a table
napkin.
d. A barter of D's ring with C's necklace. D was
publicly known to be insane but he was in his lucid
interval at the time of the exchange.

25. Which of the following statements is true as regards

a void contract?

a. A void contract is ratified by the acceptance by a

party to the contract of a benefit under its terms.

b. The right to set up the defense of illegality of a void

contract may be waived if the illegality is not raised
within a reasonable time.

c. If there is a novation of a void contract, such novation

is valid provided the new contract is valid.

d. The right to set up the defense of illegality of a void

contract does not prescribe.