The Professional CPA Review School

Main: 3F C. Villaroman Bldg. 873 P. Campa St. cor Espana, Sampaloc, Manila
 (02) 735 8901 / 0917-1332365
email add: crc_ace@yahoo.com
Baguio Davao
2nd Flr. #12 CURAMED Bldg. Marcos Highway, Baguio City 3/F GCAM Bldg. Monteverde St. Davao City
 0921-7566143  0917-1332365

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS MAY 2022 BATCH

FIRST PRE-BOARD EXAMINATION March 6, 2022

1. On June 1, 2021 Andrewborrowed P2m from Peter payable after 30 days. James proposed to pay
Andrew’s debt and Peter agreed to release Andrew from his obligation. Andrew was not aware of
the agreement between James and Peter. When Peter tries to collect from James upon maturity of
the obligation, James turned out to be insolvent and it is of public knowledge. In this case:
A. Peter can still run after Andrew
B. Peter can no longer run after Andrew
C. Peter can sue for damages against James and Andrew
D. Peter should file a specific performance case against Andrew

2. Andy promised to give Cristy the following on the latter’s 18 th birthday:

I. One of Andy’s 10 dogs
II. Apple iphone XI
III. Brand new Samsung HD TV, 72 inches
IV. A black pilot ballpen
Which of the following is true?
A. All the objects are generic
B. Items I and II are specific
C. Only item no. III is specific
D. Only item no. IV is generic

3. Bob obliged himself to give to Job his car onFeb 15, 2022. There was no delivery until Feb20,
2022 when the garage of Bob’s house collapsed due to a strong typhoon and the car was totally
destroyed. Is Bob still liable?
A. No, even if Bob was already in default, he could plead impossibility of performance.
B. Yes, the obligation to deliver the car is changed to pay the equivalent value because Bobby is
in legal delay.
C. No, because there was no demand by Job to deliver the car and the specific object was lost
due to fortuitous event. The obligation is extinguished.
D. Yes, because the contract is perfected.

4. Angela and Gabriel are jointly liable to deliver on Feb. 15, 2022,theirshih tzu dog “Kisses” valued
at P10,000 to Pauline. Which of the following is correct?
A. The prestation is indivisible making the debtors solidarily liable
B. If on Feb 15, 2022, Angela is willing to deliver the dog but Gabriel is not, Pauline may enforce
the obligation against Angela
C. Angela is liable for a proportionate part of the obligation and will be liable also for damages if
Gabriel is not ready to comply with his obligation, even if Angela is willing to deliver the dog
D. The liability of Angela and Gabriel is joint and that damages may be assessed only against the
debtor who violated the obligation

5. On Dec. 6, 2021Buknoyobtained a loan from May Malasakit Bank due on March 1, 2022. The loan
was evidenced by written contract and as a security, Buknoy executed a mortgage on her house.
The house however, was subsequently destroyed by typhoon “Odette” on January 1, 2022. In this
case.
A. The obligation of Buknoyis extinguished
B. The bank may demand payment Buknoy even before March 1, 2022
C. The mortgage is extinguished without fault of Buknoy and therefore must be excused from
paying the obligation
D. The bank must wait for March 1, 2022 before it could demand payment.
6. Ben promised to give to Connie the luxury liner M/V Morning Star with a particular Boeing 747
commercial airplane as a replacement. Ben intentionally destroyed the plane by attaching bombs
into it. In this case:
A. Connie may demand delivery of M/V Morning Star plus damages
B. Connie may demand the value of the airplane plus damages
C. Ben is liable for damages for the loss of the airplane
D. Ben is liable to give M/V Morning Star

7. Which of the following statements is true?

A. A future event may be a period or a condition.
B. The debtor losses the right to the period if he does not give any security to the creditor.
C. The condition to do an impossible thing does not render the obligation void.
D. In alternative obligations, the right to select which of the prestation shall be delivered belongs
to the creditor, unless expressly given to the debtor.

8. Which of the following is false?

A. The receipt of a later installment of a debt without reservation as to prior installments, shall
give rise to a presumption that such installments have been paid.
B. The receipt of the interest shall give rise to a disputable presumption that the principal loan has
been paid.
C. The receipt of the principal loan shall give rise to a disputable presumption that the interest
earned has been paid as well.
D. When the thing improves pending the fulfillment of the suspensive condition with the expense
of the debtor, and the condition is fulfilled; said improvement shall inure to the benefit of the
creditor.

9. A promissory note signed by Manny is worded as follows: “I promise to pay Diego the sum of One
Million Pesos provided that if he should fail in the first online Bar Examinations in Feb. 2022, he
shall return to me the said amount.” The above note gives rise to an obligation with:
A. Suspensive condition C. Resolutory condition
B. Casual condition D. Mixed condition

10. Tom owes Jerry, P1m payable on March 1, 2022. Which of the following is correct?
A. If Jerry dies before March 1, 2022, his heirs can collect from Tom
B. If Tom dies, the obligation is extinguished
C. If Jerry dies, the obligation is extinguished
D. If Tom and Jerry die, the heirs of Jerry can collect from the heirs of Tom

11. Sources of obligations as provided by law, except

A. Torts
B. Contracts
C. Culpa aquiliana
D. Solutioindebiti

12. Which of the following produces payment:

A. Dacion en pago
B. Delivery of a promissory note
C. Novation
D. Giving of collateral or guaranty

13. Donald, Daffy and Daisy are debtors of creditors Winnie, Piglet and Eeyore, in the amount of
P900,000. Winnie can collect from Daisy:
A. P300,000 C. P150,000
B. P900,000 D. P100,000

14. Which of the following obligations is valid?

A. Asyong obliged himself to give to Bosyo his brand new Omega watch if the latter can make a
circle that is at the same time a square
B. Asyong obliged himself to give to Bosyo his BMW if Bosyo will kill Juan
C. Asyong obliged himself not to demand the return of his laptop borrowed by Bosyo unless
Bosyo will fly to the sun and be back on earth alive
D. Asyong made the promise on Feb 8, 2022 thathe will paint the portrait of Bosyo on
December 1, 2021.
15. Which of the following is false?
A. In Facultative obligations, if substitution has been made, the loss of the original prestation is
immaterial
B. In delagacion, the insolvency of the new debtor can sometime revive the original debtor’s
obligation.
C. In expromission, the insolvency of the new debtor shall not revive the original debtor’s
obligation
D. The condition that some event happen at a determinate time shall give rise to the obligation as
soon as the time expires or if it has become indubitable that the event will not take place.

16. Ana promised to give her son a car if the son will marry Sofia this year, 2022. In this case:
A. If before 2022 ends, Sofia is already dead, Ana will give her son a car
B. If before 2022 ends Ana’s son married Sofia, obligation to give a car is effective and
demandable.
C. If today is January 1, 2023 and Ana’s son married Sofia, he will be entitled to the car
D. If today is January 1, 2023 and Ana’s son did not marry Sofia, Ana can sue for breach of
contract.

17. Jane and Jenny are debtors of solidary creditors John, James and Jonathan, in the amount of
P900,000. Jane’s obligation is:
A. Pay James P100,000
B. Pay John P150,000
C. Pay John, James and Jonathan P900,000
D. Pay Jonathan P300,000

18. Jane and Jenny are debtors of solidary creditors John, James and Jonathan, in the amount of
P900,000. John can collect from Jenny:
A. P150,000 C. P450,000
B. P900,000 D. P300,000

19. Bogs sold his house and lot to Tess reserving his right to repurchase the same within 5 years from
the date of the execution of their agreement. The sale together with the right to repurchase was
registered with the Register of Deeds. Two years after the execution of the sale, Tess sold the
same lot to Conrad who was not aware that Bogs reserved his right to repurchase the lot. In this
case:
A. The sale by Bogs to Tess is subject to a suspensive condition.
B. The sale by Tess to Conrad is subject to a suspensive condition.
C. The sale by Tess to Conrad is void
D. The sale by Bogs to Tess is absolute

20. During the pendency of the criminal case against a thief, the car he stole was lost through an
accidental fire. Prior to the accident, several demands were made for the owner to receive the
return of the car, but the owner refused to receive the same without any reasonable ground. This
will result to:
A. extinguishment of the obligation because an accidental fire is always a fortuitous event.
B. extinguishment of the obligation because the owner is guilty of delay
C. extinguishment of the civil obligation because the value of the car will be converted into the
number of days the thief will serve in prison.
D. liability of the accused to pay the price of the car as the obligation will not be extinguished
because the obligation proceeds from a criminal offense.

21. The following are examples of obligations with a period, except:

A. “As soon as I have money”
B. “30 days after the death of Digong”
C. “10 minutes after sunset on Dec 1, 2022”
D. “If Digong reaches the age of 78 which is 2 years from today”

22. The creditor shall have a right to indemnity for damages when, through the fault of the debtor, all
the things which are alternatively the object of the obligation have been lost or compliance of the
obligation has become impossible. The indemnity shall be fixed taking as a basis the value of the
A. Choice of the creditor.
B. Most expensive thing.
C. Last thing which disappeared
D. First thing which disappeared.
23. Which of the following is correct?
A. "I will begin supporting you from the time your father dies of heart attack" is an example of an
obligation with suspensive period because death is a certain event
B. Compensation will extinguish the obligation as when the creditor will gratuitously abandon all
his rights against the debtor
C. A condition is considered fulfilled if the debtor voluntarily prevents its fulfillment.
D. If the resolutory condition depends upon the will of debtor, the obligation subject to it is void

24. Lenny obliged herself to deliver to Jenny the following:

1) her brand new BMW m5 car 2022 model
2) A black Persian cat
Which of the following is true?
A. In case Lenny failed to deliver any of the two objects, the obligations may be complied with at
her expense
B. In case Lenny failed to deliver the Persian cat, the court may order the performance of the
obligation at her expense
C. Lenny is obligated to exercise diligence over the two objects
D. Lenny is obligated to deliver all accessories of the two objects

25. Ping owes Pong P100,000. Later Ping paid Pong P75,000 leaving a balance of P25,000. Leila,
intending to surprise Ping, paid Pong the sum of P100,000 thinking that Ping still owed Pong that
amount. Leila did this without knowledge of Ping. Which of the following is correct?
A. Leila can recover P100,000 from Ping
B. Leila can recover P100,00 from Pong
C. Leila cannot recover anything from Ping
D. Leila can recover P25,000 from Ping

26. A solidary creditor who paid the entire obligation will be not entitled to be reimbursed in which of the
following cases?
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 in compliance with the demand made to him by all the creditors
C. If such payment was made before the obligation is due
D. If such payment was made after the obligation has prescribed or become illegal

27. A, B and C are jointly indebted to D and E in the amount of P3m. Before due date, C becomes
insolvent while B died. On due date, E can collect from A:
A. Php 1m
B. Php 1.5m
C. Php 500k
D. Php 3m

28. 1st Statement – Unless the application of payment is expressly stated, the payment shall be applied
to the obligation most burdensome or onerous to the debtor.
2nd Statement –Cession en Pago is governed by the law on sales
A. 1st statement is wrong, 2nd statement is correct C. Both statements are correct
B. 1st statement is correct, 2nd statement is wrong. D. Both statements are wrong.

29. X, Y and Z are solidary debtors of Q and R in the amount of P60,000.00. Q condoned the share of
Z which the latter accepted. How much can R collect from Y if X is insolvent?
A. Zero because condonation will inure to the benefit of all debtors
B. P30,000.00
C. P20,000.00
D. P10,000.00

30. May the suit filed by a passenger who was hurt against the operator of a public utility vehicle still
prosper even if the driver was acquitted by the court?
A. Yes, provided he can prove the negligence of the driver.
B. No, this will constitute double jeopardy which is violative of the Constitution
C. No, the acquittal means that the guilt of the accused was not proven by proof beyond
reasonable doubt
D. Yes, it is sufficient for him to prove the existence of the contract of carriage and the injuries
suffered.
31. Which of the following is false?
A. The expenses of consignation when properly made, shall be charged against the obligee.
B. In a joint obligation, the insolvency of one shall not make the other debtors liable to pay his
share
C. The latin phrase “Faciout des” refers to a bilateral obligation to give
D. If the debtor promised to give his house and lot to the creditor located in Quezon City if the
debtor decides to live in Mandaluyong, the obligation is void.

32. The cause of loss is material to determine if the obligation of the debtor will be extinguished in
which of the following cases?
A. The debtor promised to give a generic thing
B. One of the prestations in an alternative obligation was lost
C. The obligation of the debtor is to pay money and the specific thing mortgaged to secure the
loan was lost
D. The obligation is facultative and the principal object was lost before substitution

33. In which of the following situations will compensation take place?

A. Bong owes Kiko P1m payable on March1, 2022. Kiko owes Bong1,000 sacks of rice worth
P1m on March 1, 2022.
B. Ping owes Willie P1m payable onMarch26, 2022. Willie owes Ping P1m due on Jan. 27,
2022 and today is Feb 28, 2022.
C. Tito owes Isko P1m. Sara is the Guarantor of Tito. Isko owes Sara P1m.
D. Lenny owes Manny 10 sacks of rice. Manny owes Lenny 10 sacks of rice.

34. Which of the following is true?

A. Novation may be presumed
B. Substitution in facultative obligations will result to novation
C. Novation may be implied
D. Cession en pago is an example of novation

35. Tom promised to give his car to Jerry with the condition that_________; hence the obligation is
valid.
A. Jerry commits suicide
B. Jerry kills Spike
C. Jerry will bring a live unicorn to Tom
D. Tom’s deceased father will not rise from the dead

36. Letlet and Potpot entered into a contract wherein Potpot will receive from Letlet a year 2022 model
car worth P1m and Potpot will give to Letlet a farm lot worth P1m. Which of the following is not a
correct group of characteristics of their contract?
A. Onerous, bilateral and principal
B. Bilateral, innominate and commutative
C. Onerous, commutative and consensual
D. Nominate, principal, bilateral

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

A. When the real agreement is void.
B. Simple donation intervivos with no condition being imposed.
C. A contract of mortgage fraudulently made as a contract of sale.
D. A contract of lease where consent is vitiated by fraud

38. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the
parties to a contract, the proper remedy to avoid liability is:
A. Ratify the contract
B. Ask for rescission
C. Annulment of the contract
D. Reformation of the contract

39. Which of the following does not constitute a definite offer?

A. An offer made thru an agent
B. An offer thru letters and telegrams
C. An offer thru business advertisements or newspapers of things for sale
 D. An offer thru telephone call

40. Pedrodelivered his laptop to Jaun for the latter’s use for one whole school year without any
compensation. In this case:
A. The cause of the contract is the generosity of Pedro
B. The object of the contract is the laptop of Pedro
C. The cause of the contract is the laptop of Pedro
D. The prestation is the friendship between the parties

41. A contract giving a person the right, to enjoy the use and fruits of a thing belonging to another:
A. antichresis B. sale C. usufruct D. commodatum

42. Which of the following is true?

A. There is relative simulation of contracts when parties executed a document intentionally
deceiving others by producing the appearance of a contract that really does not exist.
B. A contract of sale fraudulently made as a contract of mortgage may be cured by reformation
C. There is absolute simulation of contracts when the parties executed a document intentionally
deceiving others by producing the appearance of a contract which is different from the true
agreement.
D. Ratification will cure the defect of simulated contracts may it be absolute or relative simulation.

43. Kiko offered to sell his mobile phone to Bong for P50,000. Bong offered to buy the mobile phone for
P38,000 but was rejected by Kiko. When Bong was about to leave, Kikocalled him and said he is
now willing to sell for P38,000. In this case:
A. Bong is obligated to pay P38,000
B. Bong has no obligation to buy the mobile phone
C. The contract of sale was perfected.
D. The contract of sale must be in writing to be enforceable.

44. A promissory note was executed and signed by Tito which states"I promise to pay to Isko Php50m.”
The consideration received by Tito is not stated in the contract. In this case:
A. The contract is valid because the cause is always presumed to exist.
B. The contract is valid so long as it is in writing.
C. The contract is valid because cause is not essential to a contract.
D. The contract is void because the cause is not stated.

45. Bong sold to Sara his land. Sara paid the purchase price and the land was constructively delivered
to her. Later, Bong changed his mind and sued for recover of the land alleging that the sale is void
because it was entered into orally. In this case?
A. The contract is unenforceable. Bong can recover the land
B. The contract is valid because the contract was not contrary to law or illegal
C. The contract is not valid because it is not in writing as required by the Statute of Frauds
D. The contract is valid because there was implied ratification when the contract was executed

46. The following are not vices of consent except:

A. Duress C. Reverential Fear
B. Reluctance D. Simple mistake

47. Motive is different from cause of a contract because:

A. Motive is not an essential element of a contract
B. Motive is always known to the contracting parties
C. If the motive is illegal, the validity of the contract is affected
D. There will be no contract without it

48. When one of the contracting parties is compelled by a reasonable and well-grounded fear of an
imminent and gave evil upon his person or property, or upon the person or property of his spouse,
descendants or ascendants to give his consent, there is:
A. Violence
B. Intimidation
C. Mistake
D. Undue influence
49. Which of the following is true?
A. The number of parties to a contract cannot be more than two persons.
B. Acceptance by letter or telegram binds the offeror from the time the letter of acceptance is
mailed or sent by the offeree.
C. A contract of partnership is a principal and preparatory contract
D. Mutuum and commodatum are accessory contracts

50. The following contracts are not perfected until the delivery of the object of the obligations, except
A. Barter C. Commodatum
B. Deposit D. Pledge

51. A contract to make a deposit, to make a pledge or to make a commodatum are:

A. Not perfected without delivery
B. Must be in writing to be valid
C. Perfected by mere consent
D. Governed by the Statute of Frauds

52. Which of the following characteristics of fraud will may make a contract voidable:
A. Incidental and both parties should not be in pari delicto
B. Serious and both parties must be in pari delicto
C. Incidental and should have been employed by both parties.
D. Serious and should have not have been employed by both contracting parties.

53. Which of the following is not essential in perfecting consensual contracts?

A. Consent of the contract parties.
B. Object certain which are the subject matter of the contract.
C. Cause of the obligation which must be established.
D. Physical presence of the parties

54. A contract where the parties give equal or almost equal values is known as:
A. Cumulative contract. C. Aleatory contract.
B. Compensatory contract. D. Commutative contract.

55. Which of the following is valid and enforceable?

A. Oral sale of a grand piano for a price of P500k
B. Oral sale of a commercial lot for a price of P40m
C. Oral contract of loan for P10m
D. Oral agreement made in consideration of marriage

56. Linda and Tess agreed on a certain contract of sale, but Tess fraudulently made a document reciting
a contract of donation. Later both Linda and Tess died. Which is correct?
A. The heirs of Linda may bring an action to reform the instrument but not the heirs of Tess
B. The heirs of Tess may bring an action to reform the instrument but not the heirs of Linda
C. Either the heirs of Linda or Tess may bring an action to reform the instrument
D. Nobody’s heirs can ask for reformation because the contract was deemed void upon death of
Linda and Tess

57. Which of the following is an element of a real contract?

A. Execution of a public instrument.
B. Execution of a private instrument.
C. Delivery of the object of the contract.
D. Formalities required by law.

58. Which of the following contracts is not void or inexistent?

A. Oral authority given to an agent in sale of land.
B. Oral partnership agreement where immovable property is contributed.
C. Oral partnership agreement when capital is P10m cash
D. Contract in writing contemplating and asking for impossible service.
59. Which of the following is true?
A. An offer must be absolute and acceptance must be certain before there can be meeting of
minds between the parties.
B. Real contracts are perfected by mere consent of the parties regarding the subject matter and
the cause of the contract
C. An oral donation of a parcel of land may be ratified thru actual or constructive delivery of the
land by the donor to the done
D. Contracts entered into between a minor and an insane person is not void.

60. Which of the following is not a requisite of stipulation pour autrui

A. The contracting parties must have clearly and deliberately conferred a favor upon third person
B. The stipulation must be part of the contract
C. The third person communicated his acceptance to the obligor before it revocation
D. There must be an agency between either of the parties and the third person

61. Which of the following is false?

A. Autonomy of contracts is the principle that contracting parties may establish such stipulations,
clauses, terms and conditions as they may deem convenient, provided they are not contrary to
law, moral, public policy and public order.
B. Failure to disclose factsconstitutes fraud
C. Contracts are effective only between the parties, heirs and assigns.
D. Lesion or the inadequacy of cause, like an insufficient price for a thing sold does not
automatically render the contract rescissible.

62. Which of the following is true?

A. In an aleatory contract, one of the parties or both reciprocally bind themselves to give or to do
something in consideration of what the other shall give or do upon the happening of an event
which is uncertain, or which is to occur at an indeterminate time.
B. There is no cause or consideration in gratuitous contracts.
C. A written document is a requisite for the perfection of a contract
D. Conception of a contract is when the contract is executed

63. An action of annulment to extinguished a voidable contract on the ground of fraud must be brought:
A. Within four years from perfection of the contract
B. Within six years from the time of the commission of the vice of consent
C. Within four years from the discovery of the fraud
D. Within 10 years if in writing and six years if orally constituted

64. Contract wherein ratification is the cure:

A. Those which are entered into by guardian whenever the ward whom they represent suffer
lesion of more than ¼ of the value of the thing belonging to the ward
B. Contract of Donation between persons guilty of adultery or concubinage
C. Sale of Luneta Park in a private document
D. Oral Lease of a house and lot for a period of 2 years.

65. Which of the following can be extinguished by annulment of contract?

A. Ambo and Bosyo who are both unemancipated minors entered into a contract of sale in
writing.
B. Ambo to defraud his creditor Bosyo, pretented to sell his house and lot to Kiko.
C. Ambo and Kiko entered into a written contract of sale involving 3 planets in the solar system
D. Ambo intimidated Bosyo to marry Ambo’s daughter, Diday.

66. Which of the following is a rescissible contract?

A. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the
claim due them.
B. Those which are entered into by guardian whenever the ward whom they represent suffer
lesion of ¼ of the value of the thing belonging to the ward
C. Sale of a property in representation of an absentee worth P1m sold for P750k only
D. Sale of land worth P1m sold for P300k only
67. Which of following contracts is without defect?
A. A contract where a party gave his consent while in a state of drunkenness
B. A contract where a party gave his consent because the other party threatened to sue him for
an unpaid debt
C. A contract where a party gave his consent because the other party threatened to kill the
former’s spouse
D. A contract where the wife sells her property to her husband because of intimidation

68. Before acceptance of an offer, the offeree suffered insanity. What will be the status of the contract?
A. Still valid
B. Unenforceable
C. Void or inexistent
D. Voidable because of incapacity to give consent

69. Elsa intimidated Christoff to marry Elsa’s sister Anna.

The marriage contract is:
A. Void because marriage is a special contract
B. Valid because Elsa is not a party to the contract although she was the onewho is guilty of
intimidation
C. Valid because Christoff and Anna are both of legal ages
D. Voidable because of vitiated consent

70. X corporation issued and sold shares of stock to Mr. Payaman. Such shares sold may be delivered
by:
A. actual delivery C. tradition brevi manu
B. traditio longa manu D. quasi-traditio

71. A contract of sale with a right to repurchase and other contracts including a contract purporting to be
an absolute sale shall be presumed to be an equitable mortgage in the following cases, except:
A. When the vendee binds himself to pay the taxes due.
B. When the vendor remains in possession of the thing sold.
C. When the price of sale with right to repurchase to repurchase is unusually inadequate.
D. When the period to repurchase the property is extended beyond the period allowed by law.

72. Which of the following illustrates a sale known as emptio rei sperati?
A. sale of lottery tickets C. sale of newly born puppies
B. sale of rice yet to be harvested D. sale of alienable rights

73. A kind of mortgage which, although lacking some formality, form of words, or requisites prescribed
by law, shows the intention of the parties to charge real property as security for debt and contains
nothing impossible or contrary to law is known as:
A. Legal mortgage. C. Conventional mortgage.
B. Equitable mortgage. D. Voluntary mortgage.

74. Angela sold to Althea a residential lot to be containing an area of 100 square meters at P100,000
per square meter. In this connection, which of the following statements is correct?
A. If the lot should contain 90 sq. meters, Althea can choose between proportionate reduction of
the price or rescission of the contract
B. If the lot should contain 95 sq. meters only, Athea can ask for a proportionate reduction of the
price or rescission.
C. If the lot should contain 120 sq. meters, Althea must pay additional price at P100,000 per
square meter and cannot refuse to take the excess.
D. If the lot should contain 90 sq. meters, Althea can choose proportionate reduction of the price
but not rescission of the sale

75. Angelo obtained from Gabriel a loan amounting to P500,000.00, the same being secured by a
mortgage on Angelo’s house and lot. Thereafter, Gabriel assigned his credit right to Andrei after
sending notice to Angelo. Which of the following statements is incorrect?
A. Andrei can collect from Angelo even if Angelo does not give his consent to the assignment.
B. Andrei cannot collect from Angelo because the assignment of credit was without consent of
Angelo and Andrei is a third person to the contract.
C. Andrei can collect from Angelo and has the right to foreclose the mortgage on the house and
lot if Angelo will fail to pay.
D. Gabriel seized to have a right over the loan and the mortgage
76. In which of the following contracts of sale the provisions of Art. 1484 of the Civil Code (Recto Law)
apply?
A. Sale of a brand newE-jeep vehicle on straight term.
B. Sale of residential house and lot on installment.
C. Sale of car on installment where the buyer constituted a mortgage on his truck.
D. Sale of an apple mac book pro laptop on installments where the buyer constituted a chattel
mortgage over it.

77. Megan sold her house and lot to Nicole. The sale was made orally. Nicole paid the agreed price and
wanted to have the sale registered but she needs a public instrument. In this case:
A. Megan cannot be compelled to execute a document because the sale is unenforceable.
B. Nicole may compel Megan to execute the public instrument because the sale is valid.
C. Nicole may only ask for refund of the purchase price
D. The proper remedy is reformation and not ratification

78. Peter, Paul and John are co-owners of a rural lot with an area of 9,000 square meters. The lot is
surrounded on its four sides as follows: on the North, by the lot of James consisting of 1 hectare; on
the East, by the lot of Andrew consisting of 2,000sqm; on the South, by the lot of Thomas consisting
of 5 hectares; and on the West, by the provincial highway. John sells his undivided interest in the
agricultural lot to Mark, who owns several hectares of rural land in the area. Who has the right of
legal redemption over the undivided interest in the lot sold by John to Mark?
A. John
B. John, Paul and Peter
C. Peter and Paul
D. Peter, Paul, James, Andrew and Thomas

79. Mark owned a rural lot with an area of 1,000 square meters. The lot is surrounded on its four sides
as follows: on the North, by the lot of Matthew consisting of 1 hectare; on the East, by the lot of
Morris consisting of 2,000 sqm; on the South, by the lot of Melissa consisting of 5 hectares; and on
the West, by the provincial highway. Mark sold his agricultural lot to Marissa, who owns several
hectares of rural land in the area. In case all adjacent owners will exercise their legal redemption
right, who will be preferred?
A. Marissa
B. Matthew
C. Morris
D. Melissa

80. It is the process of enforcing the State’s right to take away property for public use upon payment of
just compensation which is governed by special laws:
A. Eminent Domain
B. Escheat
C. Police Power
D. Expropriation

81. Under Article 1484 of the Civil Code (Recto Law), in case of sale of movables on installment basis,
which of the following is not correct?
A. The seller can cancel the sale should the buyer fails to pay two or more installments due.
B. The seller can cancel the sale should the buyer fails to pay two or more installmentsand forfeit
the installments paid if stipulated
C. The seller can recover deficiency if the proceeds of the public sale after availing the remedy of
foreclosure of the chattel mortgage executed over the thing sold will not be sufficient to pay the
total contract price.
D. The seller can sue for specific performance or to exact fulfillment should the buyer fail to pay
any of the installments

82. Danilo bought from X Duplex Homes Corp., a 1000 square-meter commercial lot located beside SM
Molino, Cavite, on which he intended to construct a commercial building for lease to future tenants.
The terms of the sale provided for the payment of the contract price of P12m with down payment of
P2m and balance of P10m payable in 50 equal monthly installments of P50k. Danilo faulted in the
payment of the succeeding installments. As a consequence, the sale was. Danilo now wants to
claim the return of the cash surrender value of the payments he had made pursuant to the “Realty
Installment Buyer Act” otherwise known as the Maceda Law.
In this case he is:
 A. Entitled to a cash surrender value of 50% if he paid atleast 2 years installment.
B. Entitled to a cash surrender value of P50% plus 5% for every year after the 5 th year.
C. Entitled to a maximum cash surrender value of 90% of under the Maceda Law.
D. Precluded from raising the provisions of Maceda Law.

83. A party to the contract of sale with right to repurchase who shall generally bear the taxes due to the
government in relation to the possession of the property.
A. Agent C. Vendee
B. Vendor D. Bailee

84. A stipulation stating that despite delivery, the ownership of the thing shall remain with the seller until
the buyer has fully paid the price:
A. pactum commissorium C. fraud in factum
B. pactum reservatidominii D. constitutum possessorium

85. The redhibitory action based on the faults or defects of movable things must be brought within
A. 40 days from discovery of the vendee
B. 40 days from delivery to the vendee
C. 7 days from delivery to the vendee
D. 6 months from delivery to the vendee

86. When in a contract of sale there is a stipulation that the seller has the right to repurchase the thing
sold but the parties failed to fix the period, the right can be exercised:
A. any time under the principle of autonomy or freedom of the parties to stipulate
B. within 10 years from the date of the contract
C. after 4 years from the date of delivery
D. within 4 years from the date of the contract

87. Mando Rucot stole the gold bracelet of Marita worth P500k. Mando subsequently sold the same to
Maritesswho had knowledge about the circumstances that happened between Mando and Marita.
Maritess thereafter, immediately sold the same bracelet to Marisol, the latter was bereft of any
knowledge during the sale about the fact that the bracelet was stolen from Marita by Mando.Marisol
later pledged the bracelet to secure a loan she acquired from the pawnshop owned by May
Malasakit.When Marisol failed to pay the loan, the bracelet was sold in a public auction to Dina
Natuto. Marita proceeded against Dina to recover the bracelet. Who has the better right over the
bracelet?
A. Maritess C. Marisol
B. Dina Tuto D. Marita

88. Which of the following statements is true?

A. Generally possession in good faith of a movable property is equivalent to ownership.
B. Sale of future inheritance is valid as future things may be the object of the contract.
C. The fixing of the price in a contract of sale is at the option of the seller.
D. As a general rule in a contract to sell, ownership passes to the buyer upon actual or
constructive delivery.

89. Lotlot and Potpot entered into a contract wherein Potpot will receive from Lotlot a Toyota Avanza
2020 model worth P800k and Potpot will give to Lotlot cash amounting to P500k and a farm lot
worth P300k. What kind of contract is this?
A. Barter because there will be exchange of properties
B. Sale because of clear intention of the parties
C. Neither sale nor barter
D. Sale because the value of money exceeds the value of the car as considerations in exchange
of the house and lot.

90. Pauline sold her poodle dog “Peaches” to Gabriel for P10k on Feb 1, 2022. No date was stipulated
for the delivery of the poodle. While still in the possession of Pauline, “Peaches” gave birth to three
(3) puppies. Two (2) puppies died because of a fortuitous event. Which of the following is correct?
A. Pauline is entitled to the puppies because they were born before her obligation to deliver
“Peaches” arises but she will bear the loss of the 2 puppies under the principle of res perit
domino.
B. Pauline is automatically in delay because the object of the contract is a specific thing
C. Pauline is entitled to the puppy as Gabriel has not yet paid the price.
 D. Pauline is obligated to deliver “Peaches” and the remaining puppy upon payment of the
purchase price but is excuse for the loss of the 2 puppies

91. Angela sold her shih tzu dog “Chico” to Gabriel for P10k on Feb 1, 2022. Payment and delivery will
be on Feb 24, 2022. On February 14 ,2022 “Chico” was struck by lightning and died. In this case:
A. The sale is unenforceable because it was constituted orally.
B. The sale will be rendered inexistent because of physical absence of the object
C. Gabriel can choose between accionredhibitoria or accionquantiminoris
D. Angela is excused from here obligation to deliver but Gabriel is still obligated to pay

92. Which of the following statements is true?

A. In a contract of sale or return ownership shall not pass to the buyer despite delivery of the
goods.
B. The seller having voidable title to the thing sold can validly transfer title to his buyer, provided
his title has not been avoided at the time of the sale.
C. A stipulation exempting the seller from the obligation to answer for eviction is void.
D. If the consideration of the contract consists partly in money and partly in another thing, it shall
be considered a barter if the value of the thing given as a part of the consideration exceeds the
amount of the money or its equivalent

93. Which of the following statements is true?

A. A guardian cannot purchase the property of the ward unless consent of ward is given
B. The husband can never sell his property to his wife.
C. A stipulation that even when the object is delivered to the buyer, ownership will not pass until
the price is fully paid is void.
D. Dacioenpago is governed by the law on sales.

94. The liability of the surety is:

A. Solidary C. Joint
B. Secondary D. Subsidiary

95. A void stipulation fixing the price at which the property will be sold at a foreclosure sale.
A. auction price C. upset price
B. option money D. contract price

96. Which of the following is true?

A. The creditor cannot appropriate the things given by way of pledge or mortgage, without any
express stipulation.
B. In case of pledge of animals, their offspring shall pertain to the pledgor or owner of the animals
pledged, but shall be subject to the pledge, if there is no stipulation to the contrary.
C. If the debtors are not solidarity liable, the pledge or mortgage will not be indivisible.
D. The promise to constitute a pledge is a real contract

97. Which of the following is false?

A. Pledge and mortgage are accessory and consensual contracts.
B. If the thing pledged is returned by the pledgee to the pledgor or owner, the pledge is
extinguished even without any stipulation.
C. Not all contracts of pledge are voluntary and conventional.
D. If a movable property, instead of being recorded, is delivered to a third person or to the creditor,
the contract is pledge and not chattel mortgage.

98. 1st statement – The indivisibility of a pledge or mortgage is not affected by the fact that the debtors
are not solidarily liable
2nd statement – Commodatum and mutuum may be gratuitous or with a stipulation to pay interest.
A. Both statements are false C. Only the 1st statement is true
B. Both statements are true D. Only the 2nd statement is true

99. Atoy, a jeepney driver, driving recklessly, caused serious physical injuries to his passenger Bitoy
and pedestrian Caloy. As a result, which of the following is not correct?
A. Bitoy may proceed against Atoy for culpa criminal
B. Bitoy may proceed against Atoy for culpa contractual
C. Caloy may proceed against Atoy for culpa aquiliana
D. Caloy may proceed against Atoy for culpa criminal
100. A thing is not considered lost when it:
A. Perishes
B. goes out of commerce
C. stolen or robbed
D. deteriorates

/cde