SET B

1. A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples. What are the rights
and obligations of the buyer?
a. He can cancel the whole transaction since the seller violated the terms of their agreement.
b. He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apple.
c. He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them anyway.
d. He can accept all 6,000 apples and pay the seller at P20 per apple.

2. Which of the following is not a special form of payment?

a. Application of payment.
b. Cession.
c. Consignation.
d. Dacion in payment.

3. Contract with a false cause is:

a. voidable
b. unenforceable
c. all of the above
d. void

4. Contracts take effect only between the parties or their assigns and heirs, except where the rights and obligations
arising from the contract are not transmissible by their nature, by stipulation, or by provision of law. In the latter
case, the assigns or the heirs are not bound by the contracts. This is known as the principle of a. Obligatory force of
contracts.
b. Mutuality of contracts.
c. Freedom to stipulate.
d. Relativity of contracts.

5. When delivery takes place by the mere consent or arrangement of contracting parties as when the
vendor merely points to the thing sold which shall thereafter be at the control and disposal of the vendee
if the thing sold cannot be transferred to the possession of the vendee at the time of the sale, delivery is
effected
a. By traditio symbolica.
b. By traditio constitution possessorium.
c. By traditio longa manu.
d. By traditio brevi manu.

6. Solomon sold his coconut plantation to Aragon, Inc. for P100 million, payable in installments of P10 million per
month with 6% interest per annum. Solomon married Lorna after 5 months and they chose conjugal partnership of
gains to govern their property relations. When they married, Aragon had an unpaid balance of P50 million plus
interest in Solomon’s favor. To whom will Aragon’s monthly payments go after the marriage? a. The principal shall
go to the conjugal partnership but the interests to Solomon.
b. Both principal and interests shall go to the conjugal partnership since these become due after
the marriage.
c. The principal shall go to Solomon but the interests to the conjugal partnership.
d. Both principal and interests shall go to Solomon since they are his exclusive properties.

7. X sold Y 100 sacks of rice that Y was to pick up from X’s rice mill on a particular date. Y did not, however, appear
on the agreed date to take delivery of the rice. After one week, X automatically rescinded the sale without notarial
notice to Y. Is the rescission valid?
a. No, the buyer is entitled to a customary 30-day extension of his obligation to take delivery of the goods.
b. No, the seller should first determine that Y was not justified in failing to appear.
c. No, since there was no express agreement regarding automatic rescission.
d. Yes, automatic rescission is allowed since, having the character of movables and consumables, rice can easily
deteriorate.

8. S offers to sell his house to B for P100,000. B asks him if he would accept P80,000. Which of the
following is correct?
a. Because of ambiguity, both offers are terminated by operation of law

1
 SET B

b. B’s response is a rejection of the P100,000 offer, and there is no offer for P80,000 because it is too
indefinite to be an offer
c. B’s response is a counter offer effectively terminating the P100,000 offer and instigating an offer for
P80,000
d. B’s response is more of inquiry, the P100,000 offer of S is still in force

9. In order that a stipulation in favor to third person in a contract would be valid and binding upon the parties
thereto, three of the requisites are mentioned in the following enumeration. Which of them is not a
requisite?
a. The contracting parties must have clearly and deliberately conferred a favor upon that third person
b. There must be stipulation in favor of a third person
c. The third person communicated his acceptance to the obligor before it’s revocation
d. There must be an existing agency between either of the contracting parties and the third person

10. Reluctantly and against her good sense and judgment, Rosemarie entered into a contract for the delivery
of 5 tables to Corazon for the price of P15, 000.00. Contract is: a. Valid.
b. Voidable.
c. Unenforceable.
d. Void.

11. Statement No. 1: The creditor may be compelled to accept payment in checks as long as the checks are
negotiable.
Statement No. 2: An obligation payable “should the client die of diabetes” is an obligation subject to a
period.
a. Statement No. 1 is true while Statement No. 2 is false
b. Both statements are false
c. Statement No.1 is false while Statement No. 2 is true
d. Both statements are true

12. When two persons in their own right are reciprocally creditors and debtors of each other and extinguishes
both debts to the concurrent amount, what takes place is known as: a. Confusion or merger
b. Remission
c. Compensation
d. Novation

13. B called C by telephone to guaranty the debt of D to C. The contract between B and C is: a. Voidable
b. Unenforceable
c. None of the them
d. Rescissile

14. Delivery by the debtor of a specific thing to the creditor in payment of an obligation consisting of money.
a. Assignment of cession of property
b. Application of payment
c. Dation in payment
d. Tender of payment and consignation

15. X, who was abroad, phoned his brother Y, authorizing him to sell X’s parcel of land in Pasay. X sent the title to Y by
courier service. Acting for his brother, Y executed a notarized deed of absolute sale of the land to Z after receiving
payment. What is the status of the sale?
a. Valid, since the buyer could file an action to compel X to execute a deed of sale.
b. Valid, since Y was truly his brother X’s agent and entrusted with the title needed to effect the sale.
c. Valid, since a notarized deed of absolute sale covered the transaction and full payment was made.
d. Void, since X should have authorized agent Y in writing to sell the land.

16. “A”, bachelor lawyer, raped W twice. Upon learning this, “F” the father of W, was able to force A to marry
W under pain of being sued in court and dibarred from the practice of his law profession. Which
statement is correct?
a. The marriage may be annulled on the ground of threat of intimidation
b. The defectiv e marriage may, however, be ratified
c. The marriage may be annulled on the ground of force or violence
d. There was no defect, the marriage was perfectly valid

2
 SET B

17. A conferment of a direct benefit in a contract between two persons in favor of a third person who must
accept such benefit before the same is withdrawn is known as: a. Counter offer
b. Donation propter nuptias
c. Policitaion
d. Stipulation por atrui

18. These persons are bound by contracts:

a. all of them
b. contrating parties
c. heirs
d. assign or assigns

19. Which of the following contract are enforceable even if not reduced in writing?
a. Contract executed by one of the parties in a contract
b. Representation as to the credit of a third person
c. Lease of immovable for a period longer than one year
d. Agreement for the sale of immovable property

20. When the mortgage is due and remains unpaid, can the Mortgage appropriate the mortgaged property?
1st Answer: No, the only right of the mortgagee-creditor is foreclosing the mortgage.
2nd Answer: Yes, if there is stipulation in the mortgage contract allowing the mortgage-creditor to
appropriate the property mortgaged. a. Both answers are correct.
b. Both answers are wrong.
c. 1st answer wrong; 2nd answer correct.
d. 1st answer correct; 2nd answer wrong.

21. Which of the following contracts is void?

a. All of the above
b. Those which contemplate an impossible service
c. Those which object is outside the commerce of man
d. Those expressly prohibited or declared void by law

22. There shall be no reformation of contract in the following cases, except:

a. Simple donation intervivos with no condition being imposed.
b. Contract of mortgage executed as a contract of sale.
c. A contract of sale fraudulently made as a contract of lease.
d. In testamentary wills.

23. The distinction between conventional subrogation and assignment is that in conventional subrogation: a.
It is a mere cession of right.
b. An obligation is extinguished and another appears.
c. The same obligation, without being extinguished, is transferred to another.
d. It is also similar to expromision.

24. Which of the following is an obligation with a period with the benefit of the debtor and the creditor? a.
Payable on or before December 25, 2006
b. Payable when debtor’s means permit him to do so.
c. Payable when “you like”
d. Payable if “I like”

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

a. When negotiations are in progress
b. When the parties come to an agreement
c. When the contract is fully executed
d. When there is a meeting of the parties’ mind

26. Must be in writing to be enforceable:

a. Lease of land for 12 months
b. None of A and B

3
 SET B

c. Lease of car for 18 months

d. Both A and B

27. One of the following is not a characteristic of pledge and mortgage a. Accessory.
b. Onerous.
c. Gratuitous.
d. Consensual.

28. A, B, and C secured a loan from D. The promissory note which evidence the obligation states: “I
promise to pay D or order P10,000 payable on demand” (Sgd.) A B C. The obligation is: a.
Divisible.
b. Indivisible.
c. Joint.
d. Solidary.

29. Through insidious words or machinations, A was able to induce B to enter into a contract which without
them B would not have agreed to it. There is: a. Undue influence.
b. Misrepresentation.
c. Mistake.
d. Fraud.

30. Obligations may be modified by:

a. Subrogating a third person in the rights of the creditor
b. All of the above
c. Substituting the person of the debtor
d. Changing their object or principal conditions

31. The following, except one, are the characteristics of void or inexistent contract. Which is the exception?
a. The action or defense for declaration of their nullity or in existence of the contract does not prescribe.
b. The defense of illegality of the contract is available to third person whose interest is not directly
affected.
c. The right to raise defense of illegality cannot be waived.
d. They are not subject to ratification.

32. S makes an offer to B on January 1, 2007. B makes known his acceptance in a letter sent on January 2,
and received by S on January 10. Meantime, on January 5, S become insane. a. None of the above
b. There is already a meeting of minds, the contract is perfected
c. The contract is voidable because one party is insane
d. The contract is not binding because there is no meeting of minds

33. The guardian of an insane person sells a house and lot belonging to the latter valued at P100,00 to B,
buyer for P74,000 with the approval of teh court. The contract is: a. Rescissible
b. Voidable
c. Valid
d. Void

34. Which of the following is correct?

a. An action for annulment of contract is imprescriptible
b. An action to declare a contract void is not subject to prescription
c. An action for rescission of contracts prescribes in 5 years counted from the execution of the contract
d. An action to enforce judicially a natural obligation prescribes in 4 years

35. A1, A2 and A3 oblige themselves solidarily to give C a specific car valued P12,000. On the due date, C
demanded delivery but the debtors failed to deliver. The next day, while A1 still in possession of the car, it
got lost because of fortuitous event. the right of C is a. Proceed against A2 and A3 but only P4,000 each
b. Proceed against any of the debtors for the value and damages
c. Proceed against A1 only, because he is the one in posession at the time it was lost
d. None, obligation is totally extinguised

36. Mr. Renato Tal-od owns a mango tree bearing fruits, ready for harvest. He sells all the fruits of that tree to
Mr. Marcelo Abalos who pays Tala-od the sum of P5,000. Tala-od tells Abalos that he can just harvest the

4
 SET B

fruits anytime he likes pointing at the particular tree. For legal purposes, Tala-od has fulfilled his
obligation to deliver mango fruits to Abalos by: a. Traditio longa manu
b. Traditio brevi manu
c. Traditio symbolica
d. Traditio

37. B is indebted to C in the sum of P10,000. For the purpose of avoiding the claims of C, D donated all his
properties worth the same amount to X. a. the contract is merely voidable
b. the contract is void
c. the contract is absolutely simulated
d. the contract is rescissible

38. Upon the proposal of a third person, a new debtor substituted the original debtor without the latter’s consent. The
creditor accepted the substitution. Later, however, the new debtor became insolvent and defaulted in his obligation.
What is the effect of the new debtor’s default upon the original debtor?
a. The original debtor is freed of liability since novation took place and this relieved him of his obligation.
b. The original debtor shall pay or perform the obligation with recourse to the new debtor.
c. The original debtor remains liable since he gave no consent to the substitution.
d. The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part.

39. G was appointed guardian of S, the latter being 16 years old. S sold his parcel of land in writing to B
valued at P100,000 for P75,000, suffering lesion by 1/4 of the value. What is the status of the contract? a.
Voidable
b. Enforceable
c. Rescissible
d. Unenforceable

40. By this principle, the validity and efficacy of the contract cannot be left to the will of the contracting
parties.
a. relativity of the contract
b. freedom of contract
c. obligatoriness of the contract
d. mutuality of the contract

41. An incidental element of the contract

a. Payment of interest in a loan
b. Implied warranty
c. Delivery of the object of contract of pledge
d. All of the above

42. The delay on the part on thr part of the creditor to accept the performance of an obigation: a. Dolo
incidente
b. Mora solvendi
c. Dolo causante
d. Mora accipiendi

43. Which of the following is not legal subrogation?

a. When a third person, not interested in obligation, pays even without the approval of the debtor
b. None of them
c. When a creditor pays another creditor who is preffered
d. When a third person, not interested in obligation, pays with the approval of the debtor.

44. It is a contract wherein a person binds himself to render special service or to do something in behalf of
another with consent of the latter. a. Contract of service.
b. Contract of piece of work.
c. Contract of agency.
d. Contract of exchange.

5
 SET B

45. An obligation wherein various things are due, but the payment of one of them is sufficient to extinguished
the obligation is called: a. Conjoint obligation
b. Facultative obligation
c. Alternative obligation
d. Simple obligation

46. G was appointed guardian of S, the latter being 16 years old. S sold his parcel of land in writing to B
valued at P100,000 for P75,000, suffering lesion by 1/4 of the value. What is the status of the contract? a.
Unenforceable
b. Enforceable
c. Voidable
d. Rescissible

47. The following, except one, are the characteristics of void or inexistent contract. Which is the exception? a.
They are not subject to ratification
b. The action or defense for declaration of their nullity or inexistence of the contract does
not prescribe
c. The right to raise defense of illegality cannot be waived
d. The defense of illegality of the contract is available to third persons whose interest are
not directly affected.

48. Three of the following are essential requisites of contract of mortgage. Which one is not? a. The contract
must be in writing.
b. The person instituting the mortgage has the free disposal of his property.
c. The mortgage is constituted to secure the fulfillment of a principal obligation.
d. The mortgagor is the absolute owner of the thing mortgaged.

49. Cuenca mortgaged his lot and house to Bascon as collateral for the payment of his loan obligation. The
mortgage contract stipulates that Cuenca cannot sell the property while the obligation exists. Before the
maturity of the mortgage, Diaz offered to buy the property from Cuenca. a. Cuenca can sell the property
only if Bascon consent to it.
b. Cuenca cannot sell the property to Diaz unless he pays the loan obligation.
c. Cuenca cannot sell the property to Diaz because of the agreement not to sell while
the mortgage exists.
d. Cuenca can sell the property to Diaz despite the stipulation in the mortgage contract
not to sell.

50. X, a former government employee, suffered from severe paranoia and was confirmed in a mental
hospital in 2006. After his release, he was placed under the guardianship of his wife to enable him to get
his retirement pay. In 2009, he became a mining prospector and sold some mining claims. In 2012, he
sue to annul the sale claiming that he was not mentally capacitated at the time of sale. The sale in
question was a. Voidable
b. Valid
c. Void
d. Illegal

51. Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owns,
without specifying whoch lot it was, for the price of P1 million. Later, the parties could not agree which of five lots
he owned Lino undertook to sell to Ramon. What is the standing of the contract? a. Void.
b. Voidable.
c. Rescissible.
d. Unenforceable.

52. D forced C to lend him P10,000. The promisory note is in writing.

a. The contract is rescissible because the contract is fraudulent
b. Contract remains to be valid
c. C cannot demand payment from D because the contract is unenforceable d. The contract is void

53. A owes solidary creditors XYZ P10, 000. There is remission of the debts when:
a. Y tells that instead of paying P10,000, A shall just deliver a ring to Y.
b. X waives partially the obligation of P10,000 to A.
c. X borrows P10,000 from A.

6
 SET B

d. Z makes a will giving the P10,000 debt to A as legacy.

54. Valid until annulled until there has been a ratification

a. Voidable contracts
b. Inexistence contracts
c. Rescissible contracts
d. None of the above

55. Which of the following is cosidered a quasi contract?

a. Solutio indebiti
b. When the third person,without the knowledge of the debtor, pays the debt c. None of the above
d. Reimbursement due the person who saved property during the fire or storm without the
knowledge of the owner.

56. A, B and C executed a promissory note worded as follows:

We promise to pay X, Y, and Z the sum of P90,000 (Sgd.) A, B and C. a.
A is obliged to pay X, Y and Z P90,000.
b. A is obliged to pay X P60,000.
c. None of the above
d. A is obliged to pay X P30,000.

57. A, B, and C solidarily bounds themselves to deliver to X a Honda Motorcycle. The obligation was not
fulfilled through the fault of A. thereupon, X filed an action in court against C and the court awarded
P36,000 to X. which of the following situation is valid?
a. If C pays X the P36,000, C can collect from A P24,000 and B P12,000. Later B can ask for
reimbursement from A P12,000.
b. If C pays X the P36,000, C can collect from B P10,000 and from A P16,000.
c. X cannot collect the whole amount of P36,000 from C.
d. X has to collect P12,000 each from A, B, and C to satisfy the court’s award of P36,000.

58. Example 1: D promised to give C a specific car valued at P100,000 after C has killed X. Later, after the
killing the contract was novated instead of giving C a specifec car he will just give a specific land to be
delivered on Febuary 28, 2006. Meantime, both parties died. In here, the heirs of C may compel the
execution of the second contract, that is, the delivery of the specific land.
Example 2: S sold to B a specific residential house situated in Bulacan for P1M, unknown to both parties
(1)hour before the sale the property was totally gutted by fire caused by electrical defect. In here, B can
be required to pay the price of the sale, because the subject is determine S’s obligation to deliver os
extinguished, while B’s obligation remain to subsist. a. Only No. 1 is true, while No. 2 is false
b. Both examples are false
c. Both examples are true
d. Only No. 2 is true, while No. 1 is false

59. Contracts entered into in a state of drunkenness or during a hypnotic spell are: a. Void.
b. Valid.
c. Legal.
d. Voidable.

60. When the donor gives donations without reserving sufficient funds for his support or for the support of his
dependents, his donations are
a. Reducible to the extent that the donations impaired the support due to himself and his dependents.
b. Void, since it amounts to wanton expenditure beyond his means.
c. Rescissible, since it results in economic lesion or more than 25% of the value of his properties.
d. Voidable, since his consent to the donation is vitiated by mindless kindness.

61. Three of the following are rescissible, which is not?

a. Sale of property under litigation made by the defendant without the knowledge of plaintiff and
authority of the court
b. Those agreed upon in presentation of absentees, if the absentee suffers lesion by more than 1/4 of
the value of the property subject of the contract
c. None of the above
d. Those made to defraud creditors when the creditors has no other means to recover his claim
7
 SET B

62. The proper remedy is annulment of contract and not reformation when:
a. Mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties.
b. The parties concealed their true agreement.
c. A mutual mistake of the parties causes the failure of the instrument to disclose their real agreement.
d. One party was mistaken and the other knew or believed that the instrument did not state their real
agreement, but concealed the fact from the owner.

63. Unless the law or stipulation of the parties requires another standard of care, the obligation to give a
thing carries with it the obligation to take care of it with: a. Proper diligence.
b. Extra-ordinary diligence.
c. Diligence of a good father of a family.
d. Ordinary diligence.

64. The following, except one, are secondary modes of extinguishing obligations. Which is an exception?
a. changing the object of the obligation with the consent of the parties. b. death of both parties
c. prescription
d. compromise

65. Which is the least defective contract?

a. Rescissible contract
b. Void contract
c. Voidable contract
d. Unenforceable contract

66. A executes a promissory notes 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. Novation
b. Condonation
c. Remission
d. Confusion or merger

67. The loss or harm suffered by the one person on his property is called:
a. Damages
b. None of the above
c. Damage
d. Injury

68. Acme Cannery produced sardines in cans known as “Sards.” Mylene bought a can of Sards from a store, ate it, and
suffered from poisoning caused by a noxious substance found in the sardines. Mylene filed a case for damages
against Acme. Which of the following defenses will hold?
a. The expiry date of the “Sards” was clearly printed on its can, still the store sold and Mylene bought it.
b. Mylene must have detected the noxious substance in the sardines by smell, yet she still ate it.
c. Acme had no transaction with Mylene; she bought the “Sards” from a store, not directly from Acme.
d. Acme enjoys the presumption of safeness of its canning procedure and Mylene has not overcome such
presumption.

69. One of the following statements is not true:

a. A creditor is not bound to accept a check in satisfaction of his demands, because a check even if
good when offered, does not meet the requirements of legal tender.
b. The obligation of the debtor who had agree to pay in dollars in a foreign bill of exchange, shall be
discharged in Philippine currency measured at the prevailing rate of exchange at the time the
obligation was incurred.
c. The purchasing power or value of money or currency depends upon, can come into being, can be
created or brought about by a law enacted by the legislative department of the Government.
d. The Philippine peso bills when attempted to be exorted, as when carried in excess of that allowed by
the CB regulation, may be deemed to have been taken out of domestic circulation as legal tender
and thus, treated as commodity.

70. The creditor is entitled to recover damages and interest in addition to the penalty stipulated:
a. When the debtor refuses to pay the penalty
b. All of the above
8
 SET B

c. When the parties so agreed

d. When the debtor os guilty of fraud in the fulfillment of the obligation

71. D owes C P500. However, C right has already prescribed. Notwithstanding the knowledge of this fact, D
paid the amount. Realizing this mistake, D wants to recover the amount paid. a. D cannot recover
b. D can be made to recover on ground of mistake
c. D can be made to recover this will enrich C at the expense of D
d. D can be made to recover on the ground that his obligation is not legally enforceable

72. When bilateral contracts are vitiated with vices of consent, they are rendered a. voidable.
b. void.
c. rescissible.
d. unenforceable.

73. A appoints B to sell his land.

Example I – If the authority of B is oral and B sells the land in writing. The sale is valid.
Example II – if the authority of B is in writing and B sells the land orally. The sale is valid.

Which of the following is correct?

a. First example is false but the second example is true.
b. Both examples are true.
c. First example is true but the second example is false.
d. Both examples are false.

74. On June 5, 2006, Jose Dizon of Angeles City is obliged to give to Ruben Samia, Jose Dizon’s red crew
cab. There was no delivery until June 15, 2006 when the garage of the red crew cab collapsed due to
heavy ash and sand spewed by Mt. Pinatubo and red crew cab was totally destroyed. After the crew cab
was destroyed and lost, is Jose Dizon still liable?
a. No. Even if Jose Dizon was already in default, he could plead impossibility of ormance.
b. Yes. Because the contract is perfected.
c. Yes. The obligation to deliver the crew cab is changed to pay the equivalent value because Jose
Dizon is in legal delay.
d. No. Because there was no demand by Ruben Samia to deliver the crew cab and the specific object
was lost due to fortuitous event. The obligation is extinguished.

75. One is not a requisite needed in order that the obligation shall be extinguished by loss or destruction of
the thing due:
a. When the thing is lost without the fault of the debtor.
b. When the thing lost is generic.
c. When the thing lost is specific.
d. When the thing is lost before the debtor has incurred in delay.

76. A, B and C are joint debtors of joint creditors W, X, Y and Z in the amount of P300,000. How much can W
and X collect from B? a. P150,000
b. None of the above
c. P75,000
d. P100,000

77. Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat docked in Subic. Before they could
deliver it, however, the boat sank in a storm. The contract contract provides that fortuitous event shall not exempt
Roy and Carlos from their obligation. Owing to the loss of the motor boat, such obligation is deemed converted into
one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary?
a. Neither solidary nor joint since they cannot waive the defense of fortuitous event to ehich they are entitled.
b. Solidary or joint upon the discretion of Sam.
c. Joint since the conversion of their liability to one of indemnity for damages made it joint.
d. Solidary since Roy and Carlos failed to perform theor obligation to deliver the motor boat.

78. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past
event unknown to the parties, is demandable at once. This refers to: a. Divisible and Indivisible
obligations
9
 SET B

b. Joint and Solidary obligations

c. Pure obligation
d. Obligations with a period

79. An obligation where each of the debtors is liable only to a proportionate part of debt, and each creditor is
entitled only to a proportionate part of the credit is called: a. Joint obligation
b. Conjoint obligation
c. Solidary obligation
d. Divisible obligation

80. A natural obligation under the New Civil Code of the Philippines is one which
a. the obligor has a moral obligation to do, otherwise entitling the obligee to damages.
b. cannot be judicially enforced but authorizes the obligee to retain the obligor’s payment or performance.
c. the obligee may enforce through the court if violated by the obligor.
d. refers to an obligation in writing to do or not to do.

81. 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. Alternative Obligation.
b. Simple Obligation.
c. Facultative Obligation.
d. Conjoint Obligation.

82. Which of the following contracts is not unenforceable?

a. That which does not comply with the statute of frauds.
b. That were both parties are incapable of giving consent.
c. That were one party is incapable of giving consent.
d. That which is entered into the name of another person by one who has given no authority or legal
representation.

83. D obliged to give C, either object No. 1 valued at P15,000; or object No. 2 valued P10,000; or object No.
3 valued P5,000. All the objects were lost due to D’s fault in the following order stated. a. C’s right is to
demand the value of any of the object plus damages
b. None of the above
c. D’s obligation is extinguished
d. D’s obligation to pay the value of object No.1 plus damages

84. It is a mode of extinguishing an obligation when two persons in their own right are creditors and debtors
of each other.
a. Compensation.
b. Confusion.
c. Novation.
d. Reformation.

85. D owes C P10,000. But the debt soon prescribes. Later, X against the consent of D, pays C P10,000.
a. X can recover from D P10,000, because the latter was enriched at the expense of
X
b. X has no right
c. X cannot recover from D what he pays
d. Both D and C are liable to X

86. The stipulation in a contract to the effect that the debtor should remain as a servant in the house and in
the service of her creditor so long as she had not paid her debt is void because it is: a. Contrary to
obligations of contracts rule.
b. Contrary to public policy.
c. Contrary to law and morality.
d. Contrary to good customs.

87. Meeting of one person the characeristics of both the debtor and creditor in one and the same obligation
extinguishes the obligation by way of: a. condonation or remission
b. merger of confusion
c. novation
10
 SET B

d. compensation os set-off

88. X, Y, and Z joint debtors owe P18,000 to A, B, and C, solidary creditors. How much can B collect from X?
a. P9, 000
b. P6, 000
c. P3, 000
d. P18, 000

89. Anne owed Bessy P1 million due on October 1, 2011 but failed to pay her on due date. Bessy sent a demand letter
to Anne giving her 5 days from receipt within which to pay. Two days after receipt of the letter, Anne personally
offered to pay Bessy in manager’s check but the latter refused to accept the same. The 5 days lapsed. May Anne’s
obligation be considered extinguished?
a. Yes, since Bessy’s refusal of the manager’s check, which is presumed funded, amounts to a satisfaction of the
obligation.
b. Yes, since Anne tendered payment of the full amount due.
c. No, since tender of payment even in cash, if refused, will not discharge the obligation without prior
consignation in court.
d. No, since a manager’s check is not considered legal tender in the Philippines.

90. The following are requisites of pledge except:

a. The thing pledged may be placed in the possession of a third person.
b. The disposal of the property by the pledge.
c. To bind a third person, it must be recorded in the office of the Registry of Deeds.
d. Absolute ownership of the property pledged.

91. A stipulation whereby the pledgee or mortgagee automatically becomes the owner of the thing pledged or
mortgaged:
a. Consolidation of ownership.
b. Conventional redemption.
c. Pactum commisorium.
d. Consignation.

92. Araneta wrote a letter to Bascon wherein he offered to sell a piece of land. In Araneta’s letter he gives
Bascon a period of two months within which to pay the price of P500,000. After 50 days Araneta told
Bascon that he is increasing the price of the land to P700,000. Can Bascon compel Araneta to accept the
P500,000 first offered by Araneta and execute the deed of the sale? a. Yes, because Araneta is already
estopped by his signed letter.
b. No, for Bascon did not signify his acceptance of the offer.
c. Yes, because there was actual meeting of minds of the parties.
d. Yes, because the period of 2 months has not yet expired.

93. Statement I – A contract whose cause or object did not exist at the time of the transaction is a defective
contract which cannot be remedied by providing a cause or object as the case may be in the contract.
Statement II – The nullity of the accessory obligation of the penal clause does not carry with it the nullity
of the principal obligation which remains in force and demandable. Determine whether: a. Both
statements are true.
b. Both statements are false.
c. Statement I is false Statement II is true.
d. Statement I is true but Statement II is false.

94. Case 1 – A hired B for P10,000 to kidnap C, and he paid B in advance. Before B could kidnap C, A
relented and stopped B from performing the contract. The court may not allow A to recover from B the
P5,000 he paid in advance.

Case 2 – A at the point of a gun, compels B to marry him. Since the contract of marriage is voidable
either A or B has the right to file the action for annulment. Determine whether: a. Case 1 is true but case
2 is false.
b. Both cases are false.
c. Case 1 is false but case 2 is true.
d. Both cases are true.
11
 SET B

95. Three (3) of the following contracts are void. Which is not?
a. Contract in writing contemplating and asking for a possible service.
b. Oral authority given to an agent in a sale of land.
c. Oral partnership agreement where immovable property is contributed.
d. Oral partnership agreement when capital is more than P3,000.00.

96. On July 30, 2007, Arrieta wrote Bascon a letter offering a contract of sale. On August 26, Bascon wrote a
letter of complete acceptance of the contract which was received by Arrieta on August 31, 2007. But on
August 30, 2007, Arrieta had already written Bascon a letter withdrawing the offer which was received by
Bascon on September 1, 2007. Is there a perfected contract between Arrieta and Bascon? 1st Answer:
there is a perfected contract between Arrieta and Bascon because the acceptance was made before the
withdrawal.
2nd Answer: there is a perfected contract because Arrieta came to know of the acceptance before
Bascon came to know of the withdrawal.
a. 1st answer correct, 2nd answer wrong.
b. Both answers are correct.
c. Both answers are wrong.
d. 1st answer wrong, 2nd answer correct.

97. A intimidated B to marry A’s daughter. After a year B would like to file action for annulment but could not
do so because A was around to intimidate him. The marriage contract is: a. Rescissible.
b. Unenforceable.
c. Voidable.
d. Void.

98. Which of the following can be considered as a feature of a void contract?

a. action or defense to nullity is subject to prescription
b. none of them
c. subject to ratification
d. they exist

99. Essensial requisites of a contract:

a. subject
b. cause
c. all of them
d. consent

100. A contract is in the stage of conception when:

a. There is meeting of the mind.
b. Negotiations are in progress.
c. The parties come to an agreement.
d. The contract is perfected.

101. A, minor, and B, a capable person, bind themselves solidarily to pay X the sum of P10,000:
a. B may be compelled to pay P10,000
b. B may be compelled to pay P5,000 only
c. A may be compelled to pay P10,000
d. A may be compelled to pay P5,000 only

102. Which of the following is the primary classification of obligation under the Civil Code? a. Joint and
Solidary obligations
b. Real and Personal obligations
c. Unilateral and Bilateral obligations
d. Civil and Natural obligations

103. Allan bought Billy’s property through Carlos, an agent empowered with a special powerof attorney (SPA) to sell the
same. When Allan was ready to pay as scheduled, Billy called, directing Allan to pay provided and to protect his
commission. Faced with two claimants, Allan consigned the payment in court. Billy protested, contending that the
consignation is ineffective since no tender of payment was made to him. Is he correct?

12
 SET B

a. No, since consignation without tender of payment is allowed in the face of the conflicting claims on the
plaintiff.
b. Yes, a tender of payment is required for a valid consignation.
c. Yes, since Allan made no announcement of the tender.
d. Yes, as owner of the property sold, Billy can demand payment directly to himself.

104. Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the letter about it. In any
event, the deed of sale expressly stipulated that X was not liable for hidden defects. Does Y have the right to
demand from X a reimbursement of what he spent to repair the engine plus damages? a. Yes, X is laible whether or
not he was aware of the hidden defect.
b. Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing
the fact to Y.
c. No, because Y is in estoppel, having changed engine without prior demand.
d. No, because Y waived the warranty against hidden defects.

105. D1, D2, and D3 borrowed from C P300,000, and as a security, they mortgagaed their undivided
agricultural land to C. Subsequently, D1paid C P100,000. Is the mortgage on D1’s share of the land
extinguished?
a. Yes, because the obligation of D1 on the debt is only P100,000.
b. No, because the obligation is solidary, payment in part shall not extinguish the obligation secured by
the mortgage.
c. No, because mortgages are considered indivisible, payment in part shall not extinguish the
mortgage.
d. Yes, the obligation of the debtor’s is joint, D1 is answerable for only P100,000.

106. Which of the following contracts is voidable?

a. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud
b. Those whose object is outside the commerce of man
c. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims
due them
d. Those where both parties are incapable of giving consent

107. Which of the following contracts is not rescissible?

a. Those where one of the parties is incapable of giving a consent to a contract
b. 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
c. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims
due them
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

108. X, after the death of his father, sold his inheritance though its amount has not been determined to B, for a
consideration of P50,000.
a. The contract is rescissible
b. The contract is valid even though nothing remains of teh inheritance to be returned over to B
c. The contract is valid only if the inheritance valued at least equal or more than
P50,000
d. Contract is void, future inheritance cannot be the object of sale.

109. When one exercises a right recognized by law, knowing that he thereby causes an injustice to another, the latter is
entitled to recover damages. This is known as the principle of a. damnum absque injuria.
b. res ipsa loquitur.
c. vicarious liability.
d. abuse of rights.

110. The husband assumed sole administration of the family’s mango plantation since his wife worked abroad.
Subsequently, without his wife’s knowledge, the husband entered into an antichretic transaction with a company,
giving it possession and management of the plantation with power to harvest and sell the fruits and to apply the
proceeds to the payment of a loan he got. What is the standing of the contract?
a. The transaction is void and can neither be ratified by the wife nor authorized by the court.
13
 SET B

b. It is considered a continuing offer by the parties, perfected only upon the wife’s acceptance or the court’s
authorization.
c. It is void absent an authorization from the court.
d. It is void in the absence of the wife’s consent.

111. In a contract of sale executed by S and b, it appears S sold his motor vehicle to B and B bought it for
P10,000. It turned out however, S has three motor vehicles. Gallant valued P80,000; Hi-Ace van valued
P70,000; and a Jeep valued P60,000. Which of the following is correct? a. There is no contract
b. The parties can ask for annulment of contract
c. The contract shall be reformed because there was a mistake
d. The parties can ask for interpretation because the word Motor vehicle is ambiguous

112. A borrower who uses the thing for a purpose different from that intended, delays its return, receives the
thing under appraisal, lend it to a third person, or saves his property instead of the thing borrowed shall
be liable even in case of fortuitous event, because:
a. The parties have expressly stipulated such liabilities.
b. The nature of the obligation requires the assumption of risk.
c. The law expressly so provides.
d. The party is guilty of delict or wrongful act.

113. When one of the parties to a contract is compelled to give his consent by a reasonable and a well-
grounded fear of an imminent and grave evil upon his person or property, or upon the person or property
of his spouse, descendants or ascendants, there is: a. Intimidation
b. Violence
c. Undue influence
d. Reverential fear

114. It refers to a joint obligation:

a. One in which the obligation of one is resolutory condition of the obligation of the other, the non
fulfillment of which entitles the other party to rescind the contract.
b. One in which each of the debtors is liable only for a proportionate part of the debt and each creditor
is entitled only for a proportionate part of the credit.
c. One in which each debtor is liable for the entire obligation, and each creditor is entitled to demand
the whole obligation.
d. One in which either of the parties is indespensable and the other is not necessary.

115. Statement No. 1: In alternative obligations, it is a choice of which prestation to perform made by the
debtor that will convert the alternative obligation into a ure or simple one.
Statement No. 2: In facultative obligations, the right of substitution may be transferred to the creditor. a.
Statement No. 1 is false, while Statement No. 2 is true
b. Both statements are false
c. Both statements are true
d. Statement No. 1 is true, while statement No. 2 is false

116. Statement No. 1: Just before the obligation become due and demandable, the debtor proposed to the
creditor that he would give him a specific car instead of paying P150,000.00, and which proposal was
accepted by the creditor. Here, there is an extinguishment of an obligation by way of dacion en pago.
Statement No. 2: After substitution in facultative obligations, the loss of the principal through the fault or
negligence of the debtor made him liable for damages in favor of the creditor. a. Both are false
b. No. 1 is true, No. 2 is false
c. No. 1 is false, No. 2 is true
d. Both are true

117. X borrowed money from a bank, secured by a mortgage on the land of Y, his close friend. When the loan matured,
Y offered to pay the bank but it refused since Y was not the borrower. Is the bank’s action correct? a. No, since
anybody can discharge X’s obligation to his benefit.
b. Yes, since X, the true borrower, did not give his consent to Y’s offer to pay.
c. No, since Y, the owner of the collateral, has an interest in the payment of the obligation.
d. Yes, since it was X who has an obligation to the bank.

118. S entered into a contract with B by threatening B, that if B does not agree to make the contract, S will
publish defamatory matter concerning B’s wife.

14
 SET B

a. The contract is unenforceable but B is entitled to damages the moment the publication is made
b. The contract is voidable because such publication when carried out whether true or not will cause a
serious harm to B and his wife
c. Contract is void
d. The contract is valid because the defamatory matter to be published does not relate to B, the
contracting party

119. In the preceding number, what can C do?

a. C may ask for reformation
b. C may ask S to declare the contract avoided
c. C may ask for the rescissin of the contract
d. C may ask for the annulment of the contract

120. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-debtors
a. If such payment was made after the obligation has become due and demandable and notice of
payment was made only to him
b. If such payment was made before the obligation is due
c. If such payment was made with compliance with the demand made to him by all the creditors
d. If such payment was made after the obligation has prescribed or become illegal.

121. Cecilio had Eduardo kidnapped and tortured 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. Valid.
b. Voidable
c. Void.
d. Rescissible

122. When the characters of the creditor and the debtor are merged in one and the same person, there is
extinguishment of the obligation by: a. Merger of rights.
b. Remission.
c. Compensation.
d. Novation.

123. Asiong borrowed P1 million from a bank, secured by a mortgage on his land. Without his consent, his friend
Boyong paid the whole loan. Since Asiong benefited from the payment, can Boyong compel the bank to subrogate
him in its right as mortgagee of Asiong’s land?
a. No, since Boyong paid for Asiong’s loan without his approval.
b. Yes, since a change of creditor took place by novation with the bank’s consent.
c. No, but the bank can foreclose and pay Boyong back.
d. Yes, since it is but right that Boyong be able to get back his money and, of not, to foreclose the mortgage in the
manner of the bank.

124. An obligation which cannot be enforced by court action, but which is binding in the party who makes it in
the conscience and according to natural justice is called: a. Pure obligation
b. Natural obligation
c. Simple obligation
d. Civil obligation

125. Insolvency of the debtor is required in:

a. Payment by cession
b. Tender of payment and consignation
c. Dation in payment
d. Application of payment

126. X and Y are solidary debtors of A, B, and C, joint creditors to the amount of P30,000. How much can B
collect from X?
a. B can collect P30,000 from X. B in turn has to give A and C P10, 000 each.
b. B can collect P30,000 from X. X in turn can recover from Y the amount of P15,000.
c. B can collect P10, 000 from X.
d. B can collect P15,000 from X.

15
 SET B

127. The following contracts shall observe the Statute of Frauds, except
a. Lease of real property longer than one year
b. Lease of personal property longer than one year
c. Representation as to the credit of a third person
d. Guaranty

128. Rudolf borrowed P1 million from Rodrigo and Fernando who acted as solidary creditors. When the loan matured,
Rodrigo wrote a letter to Rudolf, demanding payment of the loan directly to him. Before Rudolf could comply,
Fernando went to see him personally to collect and he paid him. Did Rudolf make a valid payment? a. Yes, since
Fernando was a solidary creditor, payment to him extinguished the obligation.
b. No, since Rudolf should have split the payment between Rodrigo and Fernando.
c. Yes, since the payment covers the whole obligation.
d. No, since Rodrigo, the other solidary creditor, already made a prior demand for payment
from Rudolf.

129. A condition which if imposed on an obligation will be disregarded and will therefore make the obligation
immediately demandable.
a. If Juan will not rise from the dead.
b. If Juan kills Pedro.
c. If Juan passes the bar examination.
d. If Juan commits suicide.

130. It presupposes not only that the obligor is able, ready, and willing, but more so, in the act of performing
his obligation.
a. Obligation to sell.
b. Tender of payment.
c. Promissory note.
d. Bill of exchange.

131. The presence of a vice of consent vitiates the consent of a party in a contract and this renders the contract a.
Voidable.
b. Unenforceable.
c. Rescissible.
d. Void.

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

a. When the thing which are the object of the contract are legally in the possession
of third person who acted in bad faith.
b. When he who demands rescission can return whatever he may be obliged to restore.
c. When the party seeking resolution can perform only as to part and to part as to remainder.
d. When the seller cannot return the installments paid to him by the buyer.

133. Which of the following contracts is voidable?

a. Those which are absolutely fictitious
b. Those whoich contemplate an impossible service
c. Those where one party is incapacitated
d. Those whose object is outside the commerce of man

134. If the obligor binds himself to perform his obligation as soon as “he shall have obtained a loan” from a
certain bank, this obligation is: a. With a term
b. Resolutory
c. Suspensive
d. Conditional

135. P.A.U. sold to R.D.E. the former’s car on April 1, 2006 for P300,000. P.A.U. promised to deliver the car
on April 15, 2006 but R.D.E. did not make any promise as to when to pay.
a. R.D.E can compel P.A.U to deliver the car before April 15, 2006 upon payment of the selling price.
b. R.D.E. will be obliged to pay only at or after delivery.
c. P.A.U. on April 15, 2006 can demand payment from R.D.E. because the obligation is not subject to
any condition.
d. P.A.U. cannot demand payment until he delivers the car.

16
 SET B

136. Contracts that cannot be sued upon unless ratified:

a. Rescissible
b. Voidable
c. Unenforceable
d. None of the above

137. Requisites of application of payment, except.

a. Two or more debts
b. One debtor and one creditor
c. Debts are of different kinds
d. Debts are all due

138. X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale. After
7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father.
Unwilling to do so, X’s heirs filed an action for specific performance against Y. Will their action prosper? a. No,
since the sale cannot under the Statute of Frauds be enforced.
b. Yes, after full payment, the action became imprescriptible.
c. No, after more than 6 years, the action to enforce the verbal agreement has already elapsed.
d. Yes, since X bought the land and paid Y for it.

139. S sold his car to B because of the intimidation of B.

a. S can ratify the contract
b. S can ratify the sale with the conformity of B
c. B has the right to ask for annulment
d. B has only four years to ask for annulment

140. A sold to B the former’s horse for P5,000. No date is fixed by the parties for the performance of their
respective obligations. The obligation of A is:
a. To deliver the horse within reasonable time of two months from the contract date.
b. To deliver the horse upon the payment of B of P5,000
c. To rescind the contract as there is no time fixed for the delivery and payment
d. To deliver the horse immediately as there is a perfected contract

141. May a spouse freely donate communal or conjugal property without the consent of the other?
a. Absolutely not, since the spouse co-own such property.
b. Yes, provided the donation is moderate and intended for charity or family rejoicing.
c. Yes, for properties that the family may spare, regardless of value.
d. Yes, in a donation mortis causa that the donor may still revoke in his lifetime.

142. Bertulfo and Claudio promise to deliver a particular car valued at P100,000 to Manuela on or before
September 15, 2006. September 15, 2006 came and upon demand by Manuel for delivery from Bertulfo
and Claudio, Bertulfo was willing to deliver but Claudio refuse to deliver. In the case at bar: a. Ask a 3rd
person to perform at the expense of both debtors plus damages.
b. Bertulfo shall be liable for P50,000.00 without damages and Claudio shall be liable for P50,000.00
and damages.
c. An action for a specific performance will lie against both Bertulfo and Claudio.
d. Both Bertulfo and Claudio shall be liable for P50,000.00 each with damages.

143. Which of the following contracts is not valid?

a. Sale of immovable property orally entered into
b. None of the above
c. Mutual promise to marry entered into orally
d. One of the parties in a contract is incapable of giving consent

144. In the preceding question, which of the following is correct?

a. Answer not given
b. However, if another bidder, X, bidder P15,000, he will be considered as the highest bidder and the
contract is perfected

17
 SET B

c. In letter (b), if X increase his bid for P20,000, and no more bid equals his bid, the contract is
perfected for P20,000.
d. If there is no more offer made, the contract is perfected on the offer of B because he will be
considered as the highest bidder.

145. Contract that is made for a valuable consideration is:

a. none of them
b. onerous
c. gratuitous
d. onerous and gratuitous

146. Lennie bought a business class ticket from Alta Airlines. As she checked in, the manager downgraded her to
economy on the ground that a Congressman had to be accomodated in the business class. Lennie suffered the
discomfort and embarassment of the downgrade. She sued the airlines for quasi-delict but Alta Airlines countered
that, since her travel was governed by a contract between them, no quasi-delict could arise. Is the airline correct? a.
Yes, since quasi-delict presupposes the absence of a pre-existing contractul relation between the parties.
b. Yes, since the facts show a breach of contract, not a quasi-delict.
c. No, denying Lennie the comfort and amenities of the business class as provided in the ticket
is a tortious act.
d. No, the breach of contract may in fact be tortious as when it is tainted as in this case with
arbitrariness, gross bad faith, and malice.

147. An agent, authorized by a special power of attorney to sell a land belonging to the principal succeeded in selling the
same to a buyer according to the instrcutions given the agent. The agent executed the deed of absolute sale on
behalf of his prinicipal two days after the principal died, an event that neither the agent nor the buyer knew at the
time of the sale. What is the standing of the sale? a. Void.
b. Valid.
c. Unenforceable.
d. Voidable.

148. It is a mode of extinguishing an obligation when two persons in their own right are creditors of each other:
a. Confusion.
b. Novation.
c. Compensation.
d. Reformation.

149. Which of the following is a secondary classification of obligations under the Civil Code? a. Pure and
conditional obligations
b. Obligations with a period or obligations with a term
c. Alternative and facultative obligations
d. Determinate and generic obligations

150. Simulation of Contract- Absolute or Relative. Relative when:

a. None of the above
b. The contract is void
c. The parties conceal their true agreement
d. Parties are not bound at all

18