OBLIGATIONS AND CONTRACT

MULTIPLE CHOICE

1. A, B, C and D, solidary debtors, are obliged to give E, F, G, H and I, joint creditors P50,000.00
a. E may collect from C P20,000.00
b. E may collect from C P5,000.00
c. E may collect from C P10,000.00
d. E may collect from C P1,000.00
ANS: C PTS: 1

2. C obliged himself to pay B P50,000 within 1 month plus a penalty of P5,000 if he fails to pay within
the due date. In case of default, B can demand C to pay:
a. The principal amount of P50,000 only
b. The principal amount of P50,000 plus P5,000 penalty and legal interest
c. The principal amount of P50,000 plus P5,000
d. The principal amount of P50,000 plus P5,000 penalty and legal interest
ANS: C PTS: 1

3. A, B, C, and D are solidary debtors of solidary creditors E, F, G, and H in the amount of P100,000.
a. G may collect from A P25,000
b. G may collected P100,000
c. G may collect P50,000
d. None of the above
ANS: B PTS: 1

4. The following obligations are considered divisible, except:

a. Obligation which has for its object the accomplishment work by metrical units
b. Obligation to give determinate things
c. Obligation which has for its object the execution of certain number of days of work
d. Obligation which by its nature is susceptible of partial performance
ANS: B PTS: 1

5. Which of the following is incorrect with regard to facultative obligation?

a. A facultative obligation is one where one prestation has been agreed upon but the obligor may
render another one in substitution
b. If after substitution the principal thing is lost, the debtor is not liable whatever may be the cause
of the loss because it is no longer due.
c. If before substitution, the principal thing is lost through a fortuitous event, the obligation is
extinguished
d. If before substitution, the substitute is lost through the fault of the debtor, the debtor is liable
for damages
ANS: D PTS: 1

6. One of the following produces the effect of payment of debts:

a. Delivery of check
b. Delivery of promissory note
c. Tender of central bank notes
d. Dacion en pago
ANS: D PTS: 1

7. When the period is “on or before a date”, the debtor has the benefit of the period. This benefit is
lost and the obligation becomes demandable when:
a. The guarantee given by the debtor is not acceptable to the creditor
b. Demand by creditor could be useless
c. The debtor attempts to abscond
d. The creditor suspects the debtor of becoming insolvent
ANS: C PTS: 1

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8. The following are the remedies available to a creditor, except:
a. Pursue the property owned by the debtor
b. Compel the debtor to perform the service in obligations to do.
c. Exercise all the rights and bring all the actions of the debtor for the said purpose. (accion
subrogatoria)
d. Impugn the acts which the debtor may have done to defraud his creditor. (accion pauliana)
ANS: B PTS: 1

9. A borrowed money from Q in the amount of P250,000.00. Q dies before he has collected the debt
leaving B, his son as heir. What is the remedy available to B?
a. B cannot collect from C because of his untimely death
b. B can collect from A since he is an heir of Q
c. B can collect only if D and C agreed that the right to the debt will pass on the heirs of C.
d. B cannot because the law prohibits the transmission of the credit right.
ANS: B PTS: 1

10. D is obliged to give C a specific car if C passes the CPA Examination. This obligation is considered:
a. A pure obligation
b. An obligation with a suspensive condition
c. An obligation with a resolutory condition
d. An obligation with a period
ANS: B PTS: 1

11. One of the following is a void obligation?

a. A is liable to give C P2,000.00 if C does not water the plant.
b. A is liable to give C P2,000.00 if A goes to Makati.
c. A is obliged to give C P2,000.00 if C goes to Zamboanga
d. A is obliged to give C P5,000.00 if A wins first prize in the singing competition.
ANS: B PTS: 1

12. Mr. Beltran owes Mr. Domingo P5,000 which is due and demandable on December 1, 2017. Mr.
Domingo, on the other hand, owes Mr. Beltran P5,000 demandable and due on or before December
31, 2017. If Mr. Domingo claims compensation on December 1, 2017, can Mr. Beltran rightfully
oppose?
a. Yes, Mr. Beltran can oppose and if Mr. Domingo refuses to accept his payment on December 31,
2017, he can apply for consignation
b. No. Mr. Domingo, who was giving the benefit of the term, may claim compensation because he
could choose to pay on December 1, 2017 which is well within the “on or before December 31,
2017” period.
c. Yes, Mr. Beltran can oppose because consents of both parties are necessary in compensation
d. None of the above
ANS: B PTS: 1

13. Whenever a period is designated in an obligation, the said period shall presumed to have been
established for the benefit of:
a. The debtor
b. The creditor
c. The third party
d. Both the debtor and the creditor
ANS: D PTS: 1

14. An obligates ceases to be alternative and becomes a simple obligation in the following cases,
except:
a. When the debtor has communicated his choice to the creditor
b. When the right of choice has been expressly granted to the creditor and his choice has been
communicated to the debtor.
c. When among the several prestations that are due only one is practicable
d. When several prestations are due but the performance of one is enough to extinguish the
obligation.
ANS: D PTS: 1

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15. A obliged to give B a specific house, a specific car, or a specific jewelry. The parties agreed that B
will have the right to choose the thing which will be given to him. Before B could make his choice,
the car and the house were lost through A’s fault, successively. What is the right of B?
a. B may choose the delivery to him of the jewelry , or the price of the house or car plus damages
b. B can only choose the jewelry
c. B cannot choose either the price of the house or car because they were already lost
d. B can only choose to have delivery of the bracelet or the price of the ring which was the last
item that was lost plus damages
ANS: A PTS: 1

16. A, B, C and D are obliged to give solidary debtors F, G, H, I, & J, solidary debtors P20,000.00
a. F may collect from B P20,000.00
b. F may collect from B P4,000.00
c. F may collect from B P5,000.00
d. F may collect from B P1,000.00
ANS: C PTS: 1

17. This refers to a situation when the debtor voluntarily prevents the fulfilment of a condition:
a. Constructive extinguishment
b. Constructive fulfilment
c. Constructive dismissal
d. Constructive destruction
ANS: B PTS: 1

18. Compensation cannot be claimed by the debtor, except:

a. By bailee in a commodatum
b. By the depositor in a contract of deposit
c. By the debtor in an obligation arising from a penal offense
d. By the person obligated to give support
ANS: B PTS: 1

19. The right to choose the prestation in a facultative obligation belongs to:
a. The creditor
b. Third person
c. Both the creditor and debtor
d. The debtor
ANS: D PTS: 1

20. B owes A the sum of money. B secured the liability with a pledge of his ring. Subsequent thereto, B
has possession of the ring.
a. It is presumed that the debt has been condoned
b. It is presumed that the debt is extinguished
c. It is presumed that the pledged is condoned
d. It is presumed that both the debt and pledge have been remitted
ANS: C PTS: 1

21. A characteristic of the contract of sale which involves the exchange of value is:
a. Commutative
b. Nominate
c. Bilateral
d. Consensual
ANS: A PTS: 1

22. It involves the concurrence of the offer and acceptance.

a. Payment
b. Acceptance
c. Offer
d. Cancellation of contract
ANS: A PTS: 1

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23. The special form of payment is the conveyance of the ownership of a thing as an accepted
equivalent of the performance
a. Dacion en pago
b. Cession en pago
c. Novation
d. Compensation
ANS: A PTS: 1

24. A kind of obligation that is demandable on the date of the obligation and shall continue to be in
force upon the arrival of the day certain.
a. Resolutory period
b. Indefinite period
c. Suspensive period
d. Legal period
ANS: A PTS: 1

25. A, B, and C secured a loan from F. The promissory note which they executed reads: “I promise to pay
F the sum of P15,000 on March 5, 2018.” (Sgd.) A, B, and C. This obligation is considered:
a. Divisible
b. Joint
c. Solidary
d. Indivisible
ANS: C PTS: 1

26. Who shall be liable for the death of the dog named “Ketty’ which was hit an intensity 5.0
earthquake in 2017?
a. Creditor
b. Debtor
c. Both of them
d. None of them
ANS: D PTS: 1

27. It occurs when two or more persons ae reciprocally debtors and creditors of each other.
a. Consignation
b. Merger
c. Compensation
d. Confusion
ANS: C PTS: 1

28. C obliged himself to deliver to B his one and only car on January 4, 2016. On said date, A did not
deliver. On January 6, 2016, the car was hit by a lightning that completely led to its destruction. Is C
liable?
a. Yes because he already incurred in delay. The loss is converted into monetary claim for
damages.
b. Yes but the creditor can demand from the debtor a substitute which is equivalent to its value
c. No because no demand was made and the car was lost through fortuitous event
d. No because the obligation is extinguished even if the debtor is already in default due to
impossibility of performance
ANS: C PTS: 1

29. Mr. Ebbah is obliged a white Toyota Fortuner to Mr. Orlina on February 5, 2015. On February 16,
2015, Mr. Ebbah did not deliver his Fortuner which was destroyed by a fire on said date. Is Mr.
Ebbah still liable to pay?
a. Yes the obligation is extinguished. The specific car was lost due to fortuitous event and no
demand to deliver was made
b. Yes because he is already in legal delay. Mr. Orlina can claim for damages.
c. No. Even if Mr. Ebbah is already in default, he can plead impossibility of performance
d. Yes, Mr. Orlina can demand for another car of the same value from Mr. Ebbah.
ANS: D PTS: 1

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30. Which of the following statements is correct?
a. A solidary creditor can assign his rights without the consent of the others
b. The remission of the whole obligation, obtained by one of the solidary debtors shall entitle him
to reimbursements from his co-debtors
c. Obligations for whose fulfilment a day certain has been fixed shall be demandable at once
d. The condition not to do an impossible thing shall be considered as not having been agreed upon
ANS: D PTS: 1

31. In which type of obligation does delay/default do not exist?

a. Obligation to give
b. Obligation to do
c. Obligation not to do
d. Obligation to deliver
ANS: C PTS: 1

32. Which of the following cases is considered “legal compensation” as a mode of extinguishing an
obligation?
a. A issued a promissory note to B in the amount of P10,000. At the maturity date, B voluntarily
delivered the promissory note to A.
b. A obliged himself to deliver a car on January 1, 2018. On December 30, 2017, the car was hit by
a lightning that resulted to its total destruction.
c. A has a time deposit with JLM bank for P5,000,000. On November 1, 2016, the loan which A
procured from JLM Bank in the amount of P5,000,000 inclusive of 10% interest matured.
d. A issued a promissory note in the amount of P500,000 to B who assigns it to C. C subsequently
assigns it back to A at the maturity date.
ANS: C PTS: 1

33. The following obligations are not susceptible of legal compensation, except:
a. Debts arising from contracts of commodatum/deposit
b. Civil damages arising from obligations with a penal clause
c. Obligations arising from a criminal offense
d. Obligations in favor of the government (taxes, duties, license, etc.)
ANS: B PTS: 1
34. In the prosecution for the crime of criminal negligence, the accused is acquitted because the
prosecution failed to prove his guilt beyond reasonable doubt. May the offended party file a civil
case based on quasi-delict?
a. No because that will result to double jeopardy
b. Yes if there is a pre-existing contractual obligations between the parties
c. Yes because crime and quasi-delict are distinct and separate sources of obligations
d. No because the offended party is barred by principle of res judicata
ANS: C PTS: 1

35. Mr. Santos obliged himself to pay Mr. Perez a sum of money in the amount of P10,000. The
promissory note reads in part “xxx he binds himself to pay as soon as Mr. Santos has the money.”
a. The obligation is unenforceable because it cannot enforced it by ordinary court action.
b. The obligation is void since the condition is dependent upon the will of the debtor
c. The obligation is subject to a suspensive condition
d. The court may fix the period. Once it is fixed by the Court, it cannot be changed by the parties
ANS: D PTS: 1

36. Mr. Cruz obliged himself to deliver a specific car or a truck as a substitute. Which of the following
statement is correct?
a. Before the substitution of the truck, its loss on account of Mr. Cruz’s fault will make him liable
for damages
b. After the substitution, the loss of the truck will make Mr. Cruz liable on account of his delay,
negligence or through fault
c. After the substitution of the truck, the loss of the specific car will make Mr. Cruz liable if the
reason of the loss is due to his fault
d. Mr. Cruz may give the right to choose the substitute to the creditor.
ANS: B PTS: 1

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37. The following statements are the requisites of Stipulation Pour Autrui except?
a. The contracting parties must clearly and deliberately confer a favor upon a third person
b. The stipulation should not be compensated by any kind of obligation
c. The stipulation in favor of a third person should be for the whole contract
d. Neither of the parties bears the legal representation of the third party
ANS: C PTS: 1

38. A borrowed P10,000 from B with interest at the rate of 6% annually. B now wants to increase
the interest rate at 8% without the consent of D. What is the principle prohibited by this act?
a. Relativity of contract
b. Autonomy of contract
c. Consensuality of contract
d. Mutuality of contract
ANS: D PTS: 1

39. Which of the following conditional obligations is valid?

a. A obliged himself to give B a car if she divorces from her husband.
b. A obliged himself to deliver a truck if A will travel to Hongkong next month
c. A obliged himself to give C his house if C will not go the moon
d. A obliged himself to deliver his watch if D will go on trial marriage for one (1) year
ANS: C PTS: 1

40. A, B, and C are liable to pay D, E, F, and G in the amount of P24,000. D assigned his obligation back
to A. Which of the following statements are correct?
a. P8,000 of the loan is extinguished by confusion or merger
b. P2,000 of the loan is extinguished by confusion or merger
c. P4,000 of the loan is extinguished by confusion or merger
d. P6,000 of the loan is extinguished by confusion or merger
ANS: B PTS: 1

41. The following are the basic principle governing a contract, except?
a. Freedom or liberality to stipulate terms
b. Obligatory force
c. Binding on third parties
d. Perfection by mere consent
ANS: C PTS: 1

42. A, B, and C are solidary debtors of solidary creditors G and H in the amount of P24,000. G remitted
the entire obligation in favor of A who accepted it. Which of the following statements is correct?
a. Only the amount of P8,000 is extinguished
b. A can ask reimbursement in the amount of P8,000 each from B and C
c. G must reimburse H in the amount of P12,000
d. Only P12,000 of the obligation is extinguished
ANS: C PTS: 1

43. D owes C P10,000 due on December 1, 2017. Before the due date, D delegated his obligation to X
and C consented to it. X becomes insolvent. Which of the following statements is correct?
a. D’s obligation is extinguished because there is no valid novation
b. C cannot proceed against X and D
c. C cannot proceed against D unless D knew at the time of the delegation that X is already
insolvent
d. None of the above
ANS: C PTS: 1

44. Mr. Orlina sold his specific car to Mr. Perez for P150,000. There was no fixed date for the
performance of the obligations of Mr. Orlina and Mr. Perez. The obligation of Mr. Orlina is to:
a. To deliver the specific car immediately since the contract is already perfected.
b. To rescind the contract because no time or date is fixed for the performance of their respective
obligations
c. To deliver the jeep after Mr. Perez demands for the delivery of the car.
d. To wait for Mr. Perez to pay P150,000 and deliver the car
ANS: D PTS: 1

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45. Mr. Tan secured a loan from Mr. Diokno in the amount of P1,000,000 which is to be paid on
December 1, 2017. As a security for the payment of the loan, Mr. Tan executed a Real Estate
Mortgage on his house in Fairview in favour of Mr. Diokno. On November 1, 2017, the house was
totally destroyed by typhoon “Nimfa”. On November 15, 2017, Mr. Diokno demanded payment of
the loan from Mr. Tan. Is the demand valid?
a. No. The obligation to pay is on December 1, 2017.
b. Yes. The obligation became due and demandable because the guaranty was lost through
fortuitous event
c. No. The obligation was extinguished because the house was lost through fortuitous event.
d. Yes. The obligation became due at once because the creditor is given the right to demand
performance before its due date
ANS: B PTS: 1

46. Mr. Guerra sold his Labrador dog named “Witty” to Mr. Suarez for P45,000. No payment has been
made and the deed of sale does not indicate the date of delivery. Before delivery and payment,
Witty gave birth to a puppy. Which of the statements is correct?
a. Mr. Guerra is entitled to the fruit (“puppy”) since Mr. Suarez has not paid the price yet.
b. Mr. Suarez is entitled to the fruit because it was born after the perfection of the contract
c. Mr. Guerra is entitled to the fruit because his obligation to deliver the dog
d. Mr. Suarez should pay additional amount for the puppy to be entitled to it.
ANS: B PTS: 1

47. The following persons are bound by the contract, except:

a. Debtor
b. Assigns
c. Heirs
d. None of the above
ANS: D PTS: 1

48. Which of the following statements is correct with regard to Dation en Pago and Sale?
a. In dation, there is a pre-existing credit. In sale, there is none.
b. In dation, the giving of the object will partially extinguish the obligation. In sale, the giving of the
price generally ends the obligation to pay
c. In dation, the obligation is extinguished. In sale, it gives rise to an obligation
d. None of the above
ANS: B PTS: 1

49. Which of the following statements is not an exception to the “rule on relativity”?
a. Obligations arising from contracts which are not transmissible in nature
b. When a third person induce another to violate his contract
c. The right of the creditor to sue on a contract entered into by his debtor
d. None of the above
ANS: D PTS: 1

50. Mr. Mercado obliges himself to deliver to Mr. Samson a specific watch, or specific laptop, or a
specific audio system on December 1, 2017. On November 1, 2017, the specific watch and specific
laptop were lost due to Mr. Mercado’s fault. On November 3, 2017, he informed Mr. Samson that
he would deliver the specific audio system. However, before its due date, specific audio system was
totally destroyed due to typhoon “Indang”. Which of the statement is correct?
a. Mr. Mercado is liable to pay damages for the lost of the specific watch and specific laptop
b. Mr. Mercado is not liable because the obligation is totally extinguished since the loss was on
account of fortuitous event
c. Mr. Mercado obligation is not totally extinguished since he can always replace it by the delivery
of another thing
d. Mr. Mercado is liable since the choice of obligation should be expressly given to the creditor
who must communicate his choice prior to the delivery.
ANS: B PTS: 1

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51. The obligation is demandable at once;
a. Subject to suspensive condition
b. Subject to resolutory condition
c. when it depends on the will of the third person
d. when his means will permit me to do so
ANS: B PTS: 1

52. A, B, C and D owes E, F, G and H P40,000. How much can E collect from A if there is no agreement if
their obligation is joint or solidary?
a. P2,500
b. P40,000
c. P10,000
d. P5,000
ANS: A PTS: 1

53. The principle by which contracting parties are equal in the eyes of law:
a. Autonomy of contracts
b. Relativity of Contracts
c. Mutuality of contracts
d. Consensuality of contracts
ANS: C PTS: 1

54. Here, defense of a good father of a family is not a proper defense:

a. Culpa contractual
b. Culpa aquiline delicto
c. Tort or quasi-delict
d. Culpa criminal
ANS: A PTS: 1

55. 1st Statement: When a fortuitous event concurs with a person’s negligence resulting to loss, he is still
exempt from liability
2nd Statement: The creditor has a right to the fruits of the thing form the time ownership is transferred.
a. Both statements are correct
b. Only the first is correct
c. Both statements are false
d. Only the second is correct
ANS: C PTS: 1

56. A obliged himself to deliver B his dog, his cow, his carabao, his elepahant, or his crocodile. The first two
lost due to fortuitous event and the last three were lost due to A’s fault. What is A’s obligation?
a. Creditor, B may convert to cash any of them plus damages
b. Debtor A may convert to cash the value of the last one lost plus damages.
c. A may rescind the contract plus damages.
d. Creditor, B may convert to cash any of the last three plus damages.
ANS: B PTS: 1

57. A obliged himself to deliver to B his cell phone or as a substitute he may deliver his cute kitten. After
substitution was made, the former was lost due to A’s fault
a. A is liable and must pay damages
b. A will simply deliver his cute kitten plus damages for the loss of the cell phone
c. The loss has no effect to the obligation; obligation to deliver the latter will subsist.
d. Obligation was extinguished.
ANS: C PTS: 1

58. 1st Statement: Mr. X waived in advance his right to sue Mr. A, if A will cause him injury due to A’s
negligence. The waiver is void.
2nd Statement: Liability arising from dolo can be mitigated by the courts
a. True; True
b. True; False
c. False; False
d. False; True
ANS: C PTS: 1

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59. A and B solidarily owe C P50,000; they issued a promissory note in favor of C. C endorsed it to D, D
endorsed it to E, E then endorsed it back to A who is also E’s creditor in the amount of P50,000.
a. The obligation is partially extinguished by merger.
b. The obligation is extinguished and A cannot recover any amount from B
c. The obligation is extinguished and A can recover the share of B which is P25,000
d. The obligation is partially extinguished by compensation.
ANS: C PTS: 1

60. Rose obliged herself to give Jack 1 dozen of eggs on January 15, 2009. When the date arrived, Rose
failed to deliver despite repeated demands from Jack. Jack’s remedy is:
a. Compel Rose to deliver eggs plus damages
b. Compel Rose to pay the amount of the eggs.
c. Rescind the contract
d. Ask a 3rd person to deliver the eggs to him but chargeable to Rose
ANS: D PTS: 1

61. A owes B- P10,000. Without the consent of A, B agreed with C’s proposal (C is suitor of A) to answer for
A’s obligation for which A vehemently objected to but could not do anything. The following week all of C’s
properties were destroyed by fire, hence he could no longer pay the P10,000 obligation due to insolvency.
a. A’s obligation is revived
b. A must answer for ½ of the obligation
c. A’s obligation is not revived
d. B cannot collect at all
ANS: C PTS: 1

62. One is an incorrect distinction between solidarity and indivisibility.

a. Solidarity refers to the legal tie whereas indivisibility refers to prestation.
b. Plurality of subject is indispensable in solidarity unlike in indivisibility
c. In case of breach, solidarity character of obligation remains, but the indivisible character of the
obligation is terminated.
d. Solidarity refers to the parties of the obligation and the prestation whereas indivisibility
refers to the vinculum juris.
ANS: D PTS: 1

63. 1st Statement: Payment of income tax is an obligation arising from government contracts.
2nd Statement: Civil liability from a criminal act is an obligation arising from quasi delict.
a. If only the first statement is correct
b. If only the second statement is correct
c. If both statements are correct
d. If both are false
ANS: D PTS: 1

64. All are primary classification of obligation, except one:

a. Pure obligation
b. Obligation with a period
c. Real obligation
d. Conditional obligation
ANS: C PTS: 1

65. I will pay you P10,000 if I decide to go to USA tonight is what kind of condition;
a. Casual
b. Potestative resolutory
c. Potestative suspensive
d. Mixed
ANS: C PTS: 1

66. Here, consignation alone is enough to produce payment except;

a. If creditor is unknown
b. Creditor is reluctant to issue receipt
c. Creditor is incapacitated
d. Two or more persons claim to be creditors
ANS: B PTS: 1

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67. The buyer has the right to the fruits of the things sold from;
a. Perfection of contract
b. From the time the obligation to deliver it arises
c. From the time of delivery
d. None of the above
ANS: A PTS: 1

68. Which of the following is correct?

a. An action for rescission of contract prescribes in five (5) years counted from the execution of
the contract.
b. An action to declare contract void is not subject to prescription
c. An action for annulment of contract is imprescriptible
d. An action to enforce judicially a natural obligation prescribes in 4 years.
ANS: B PTS: 1

69. The following contracts should observe the Statute of Frauds, except
a. Lease of real property longer than one year
b. Representation as to the credit of a third person
c. Lease of personal property longer than one year
d. Guaranty.
ANS: C PTS: 1

70. Rescission of contract can take place in this case:

a. When the seller cannot return the installment paid to him by the buyer.
b. When the party seeking resolution can perform only as to part and rescind as to remainder.
c. When he demands rescission can return whatever he may be obliged to restore.
d. When the things which are the object of the contract are legally in the possession of third
person.
ANS: C PTS: 1

71. S makes an offer to B on January 1, 2009. B makes known his acceptance in a letter sent on January 2,
and received by S on January 10. Meantime, on January 5, S becomes insane.
a. The contract is unenforceable.
b. The contract is not binding because there is no meeting of minds.
c. There is already a meeting of minds, the contract is perfected.
d. The contract is voidable because one party is insane.
ANS: B PTS: 1

72. The stage of “conception” of a contract is:

a. When there is a meeting of the parties’ minds.
b. When negotiations are in progress.
c. When the parties come to an agreement
d. When the contract is fully executed.
ANS: B PTS: 1

73. L entered into a contract of lease with X, T, the clerk of L, typed the document. Due to T’s negligence,
the document made was that of sale instead of lease.
a. Remedy is reformation.
b. Parties may enforce their right because it is enforceable
c. Parties may go to court for interpretation
d. The remedy is annulment.
ANS: A PTS: 1

74. Which of the following can be considered as feature of the void contract?
a. Subject to ratification
b. they exist
c. Action or defense for nullity is subject to prescription
d. None of them.
ANS: D PTS: 1

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75. In three of the following defective contracts, ratification cleanses the defects. Which is the exception?
a. Contracts entered into by a person who has been given no authority.
b. Sale of piece of land thru an agent the authority is oral.
c. Sale of immovable property or interest orally entered into.
d. Both parties are incapable of giving consent.
ANS: B PTS: 1

76. Statement No. 1: Ratification of voidable contract is necessary for its validity.
Statement No. 2: Sales between husband and wife are void always.
a. Both are true
b. Both are false
c. No.1 is true; No.2 is false
d. No.1 is false; No. 2 is true
ANS: B PTS: 1

77. S and B orally agree that S would sell and would buy S’s radio for P400, two years from the date of the
agreement. At the end of the two-year period, S refused to deliver the radio although B was willing to pay.
a. The object is movable, oral contract is enforceable.
b. No statute of fraud because the price is less than P500.
c. The contract falls under the Statute of Frauds, therefore, unenforceable.
d. B can compel S to deliver because B is willing to pay the price.
ANS: C PTS: 1

78. S, a minor, owns a specific property valued P50,000. B, capacitated, by means of fraud induced S to sell
his property to him (B) for P10,000 which S did so. The contract is in writing.
a. The contract is void
b. The contract is rescissible because the ward suffered lesion by more than ¼ of the value.
c. The contract remains unenforceable because it falls under the Statute of Fraud.
d. The contract is binding from the start.
ANS: D PTS: 1

79. Type of defective contract that creates no rights and impose no obligation, but are susceptible of
ratification.
a. Void contracts.
b. Rescissible contracts.
c. Unenforceable contracts.
d. Voidable contracts.
ANS: C PTS: 1

80. The guradian of an insane person sells a house and lot belonging to the latter valued at P100,000 to B,
buyer for P74,000 with the approval of the court. The contract is:
a. Rescissible
b. Unenforceable
c. Voidable
d. Valid
ANS: D PTS: 1

81. Example No. 1: W sold his land orally to B for one third of its value.
Example No. 2: S sold his house valued at 1 M for only P400,000 to B court employee where case involving
the house is being litigated.
a. Both contracts are binding.
b. No.1 is unenforceable.2nd is rescissible
c. No. 1 is rescissible; while no. 2 is unenforceable.
d. Contracts are validable and void respectively
ANS: D PTS: 1

82. 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

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 ANS: A PTS: 1

83. 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 person interested in the fulfillment of the
obligation.
ANS: B PTS: 1

84. On October 4, 2009, 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 agree to the proposal. On October 25, 2009, X
became 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 then proposal that A guaranteed X’s solvency. Decide
a. A is liable because he is presumed to have guaranteed X’s solvency
b. A is not liable because he is in good faith.
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 solidarity liable for the obligation.
ANS: B PTS: 1

85. A, guardian of B, bought B’s house and lot worth P480,000 for P240,000 or over ¼ lesion
a. The contract can be rescinded because of inadequacy of price
b. The contract can be voided
c. The contract is void
d. The contract cannot be rescind because it is expressly provided by law as one of the contract
which cannot be rescinded.
ANS: A PTS: 1

86. X enter 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 public instrument.
c. The contract is unenforceable.
d. The contract is perfectly valid and enforceable.
ANS: D PTS: 1

87. On July 15, 2008, X entered into a contract with Y. On February 10, 2009, X discovered that fraud was
committed at the time he entered into the contract, a fraud that vitiated the 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, 2009
c. Within four years from the time A entered into the contract
d. A can rescind the contract for non-payment of the price.
ANS: B PTS: 1

88. On September 1, 2009 A entered into a contract with B whereby A sells to B 5,000 sacks of sugar to be
delivered on the 15th and to be paid in full on the 30 th. There was no agreement for rescission based on
non-payment. A did not deliver on the 15 th but on the 30th, he was willing and offering to deliver but B
did not make payment on said date and so A did not like it and refused to make delivery. Decide.
a. A cannot rescind the contract for non-payment of the price
b. A must wait for B to pay the price.
c. B is not entitled to recover damages.
d. A can rescind the contract for non-payment of the price
ANS: A PTS: 1

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89. 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 preparation, X and Y decided
to bring an action against A and B, will the action prosper? Decide.
a. Between Y and B, the action will 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 prosper 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.
ANS: C PTS: 1

90. Which of the following is correct?

a. An action to enforce judicially a natural obligation prescribes in 4 years
b. An action for annulment of contract is imprescriptible.
c. An action to declare a contract void is subject to prescription of 10 years
d. An action for rescission of contract based on lesion is only a subsidiary remedy.
ANS: D PTS: 1

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