Professional Documents
Culture Documents
2. A shipped his cargo in B’s vessel. B and C entered into a contract for C to unload the cargo from the
ship’s hold. In the lifting operations, A’s cargo was damaged, which is correct?
a. A may go against both B & C and sue for damages
b. A may go against B and sue for damages
c. A may go against C and sue C for damages
d. A may go against either B or C and sue for damages
3. A, a minor, entered into a contract without the consent of her parents. In said contract A was supposed
to pay to B the sum of P10,000. B did not know of A’s minority and when A voluntarily paid B the
money, B accepted the sum. Out of this amount, B spent P8,000 for his needs. Later, the parents of
A learned of the transaction and brought an action in court to recover the P10,000 paid to B. How
much can the parents recover from B?
a. P8,000
b. P2,000
c. Nothing
d. P10,000
4. The process of intentionally deceiving others by producing the appearance of a contract that really
does not exist
a. Absolute simulation
b. Relative simulation
c. Fraud
d. Misrepresentation
5. The process of intentionally deceiving others by producing the appearance of a contract which is
different from the true agreement
a. Absolute simulation
b. Relative simulation
c. Fraud
d. Misrepresentation
6. A owes B P10,000 due on May 27, 2015. A owes B P8,000 due on May 28, 2015. A obliged himself to
deliver to B a cow valued at P6,000 on May 30, 2015. On May 31, 2015, A paid B P10,000. If A
makes an application of payment,
a. The P10,000 should be applied to the second debt only
b. The P10,000 may be applied either to the first debt or to the second debt
c. The P10,000 may be applied to the first debt, or to the second debt or to the third debt
d. The P10,000 should be applied to the first debt only
7. A sold his land to B. The sale was made orally. B paid the agreed price. B wanted to have the sale
registered but he needs a public instrument. Which is correct?
a. B cannot demand the return of the purchase price because the sale is unenforceable.
b. B may compel A to execute the public instrument because the sale is valid.
c. B may only occupy and use the land as buyer in good faith
d. B may sue A for the return of his money as no one shall be unjustly enriched at the expense of
another
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8. A is indebted to B for P100,000. For the purpose of defrauding B, A sold his only parcel of land to X
valued at P 100,000. X has no knowledge of the intention of A. As a result
a. The contract is voidable because A acted in bad faith
b. The contract between A and X is rescissible
c. The right of B is to rescind the contract because it was intended to defraud him.
d. The contract between A and X is binding
9. A lost in gambling and as payment executed a promissory note in favor of winner, B. Later, B assigned
the note to C. May C successfully recover from A?
a. Yes, because B can recover, so also the assignee can.
b. No, because promissory notes can only be negotiated but not assigned.
c. Yes, if C is not aware that it is in payment of a gambling debt.
d. No, because B cannot recover, so also cannot the assignee
11. The meeting of minds regarding the object and cause of the contract
a. Preparation
b. Conception
c. Death
d. Birth
12. The point where the parties have performed their respective obligations and the contract is terminated
a. Conception
b. Perfection
c. Preparation
d. Consummation
13. A contract where the fulfillment is dependent upon the chance, so the values may vary because of the
risk or chance.
a. Aleatory
b. Gratuitous
c. Remunerative
d. Commutative
14. A contract where the cause with respect to each contracting party is the prestation or the promise of a
thing or service by the other is
a. An onerous contract
b. An innominate contract
c. An aleatory contract
d. A gratuitous contract
15. A contract where one party receives no valuable consideration and the cause is the liberality of the
benefactor is
a. An onerous contract
b. A commutative contract
c. A unilateral contract
d. A gratuitous contract
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16. Not a requisite for the validity of a contract
a. Consent
b. Object
c. Cause
d. Delivery
19. A contract where both contracting parties are incapable of giving consent is
a. Unenforceable
b. Voidable
c. Void
d. Rescissible
22. Contracts are generally effective only between the parties, their assigns and their heirs
a. Simplicity of contract
b. Relativity of contract
c. Consensuality of contract
d. Mutuality of contract
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25. A is the guardian of B, a minor. B sold his land in writing to C valued at P1M for P.7M. The sale is
a. Unenforceable
b. Rescissible
c. Voidable
d. Void
26. A delivered his car to B for the latter’s use for one week without any compensation. The cause of the
contract is
a. The car of A
b. The delivery of the car
c. The generosity of A
d. The period of one week
27. A delivered his bracelet to B for B’s necklace. No written agreement was signed by the parties. Which
of the following is appropriate description of the contract between A and B?
a. Onerous and innominate
b. Bilateral and innominate
c. Aleatory and nominate
d. Onerous and bilateral
28. The following instances will render an offer ineffective before acceptance is conveyed. Which one will
not? When one of the parties
a. Becomes insolvent
b. Becomes insane
c. Is placed under a hypnotic spell
d. Is civilly interdicted
29. D forced C to sign a promissory note where C promises to pay D P100,000. The correct amount should
be P60,000. Which is correct?
a. The contract is unenforceable
b. D cannot demand payment from C because the contract is voidable
c. The contract is valid
d. The contract is rescissible because there is lesion
30. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the
instrument does not show their true intention, which one of the following is correct?
a. The former may ask for reformation
b. The latter may ask for reformation
c. Either the former or the latter may ask for reformation
d. The former may ask for annulment
31. A, desiring to buy certain property, hired an expert to ascertain its true value. But the expert’s opinion
turned out to be wrong and A was therefore misled. May A ask for annulment of the contract?
a. Yes, because the opinion was made by an expert
b. No, a mere expression of an opinion does not signify fraud
c. No, because A’s own expert committed the error
d. Yes, A had relied on the expert’s special knowledge
32. Although validly agreed upon, courts can nullify this contract because of damage to one of the parties
or to a third person and its enforcement may cause injustice by reason of some external facts
a. Rescissible contracts
b. Voidable contract
c. Unenforceable contract
d. Void contract
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33. A clause providing that the mortgagee will automatically own the property mortgaged if the debt is not
paid at maturity is
a. Payment by cession
b. Pactum commissorium
c. Upset price
d. Dacion en pago
34. A specific amount below which the mortgaged property is not supposed to be sold at the execution sale
a. Payment by cession
b. Pactum commissorium
c. Upset price
d. Dacion en pago
37. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the parties to
a contract, the proper remedy is
a. Ratify the contract
b. Ask for specific performance
c. Annulment of the contract
d. Reformation of the contract
38. The following are some accidental elements of a contract of sale, except
a. Terms of payment
b. Interest rate
c. Place of payment
d. Accession and accessories
40. The following contracts are not perfected until the delivery of the object of the obligations, except
a. Pledge
b. Deposit
c. Commodatum
d. Sale
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42. A contract to make a deposit, to make a pledge or to make a commodatum is
a. Consensual contracts
b. Real contracts
c. Solemn contracts
d. Solemn contracts
43. Acceptance of an offer made by letter or telegram shall bind the offeror from the time the
a. Offeree accepted the offer
b. Offeree sent his letter or telegram.
c. Acceptance came to the knowledge of the offeror
d. Offeror made the offer
44. A contract where consent is given through mistake, violence, intimidation, undue influence or fraud is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
45. When in order to wrest consent, serious or irresistible force is employed, there is
a. Mistake
b. Intimidation
c. Fraud
d. Violence
46. When one of the contracting parties is compelled by a reasonable and well-grounded fear of an
imminent and grave evil upon his person or property, or upon the person or property of his spouse,
descendents or ascendants to give his consent, there is
a. Violence
b. Mistake
c. Intimidation
d. Undue influence
47. When through insidious words or machinations of one of the contracting parties, the other is induced
to enter into a contract which, without them he would not have agreed, there is
a. Fraud
b. Mistake
c. Intimidation
d. Undue influence
48. I. Failure to disclose facts, when there is a duty to reveal them constitutes fraud.
II. The usual exaggerations in trade, when the other party had an opportunity to know the facts, are
not in themselves fraudulent
a. True, true
b. True, false
c. False, true
d. False, false
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50. The inadequacy of cause, like an insufficient price for a thing sold
a. Lesion
b. Cession
c. Dation
d. Option
56. A was indebted to B bank. Later C, employee of A, offered to settle the obligation according to the
terms specified by him. The bank accepted the offer. The acceptance by the bank of the offer of C
under the term specified by him constitutes
a. A compensation
b. A confusion
c. Novation
d. Condition
58. A, B and C borrowed P24,000 from Y and Z and signed a promissory note dated January 30, 2011, and
due within six months. How much can Y collect from A (debtors are solidary while creditors are joint),
on due date
a. P4,000
b. P8,000
c. P12,000
d. P24,000
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59. A obliged himself to give B a car if B places among the top ten in the CPA Board Exam. Subsequently,
they agreed that A will give B the car if B merely passes the CPA Board. This is example of.
a. Real novation
b. Implied novation
c. Personal novation
d. Mixed novation
60. A owes B P10,000 payable as soon as A has the money to pay B. This is
a. An obligation with a period
b. A suspensive condition
c. A potestative condition
d. A conditional obligation
61. A law, to aid in human memory, or to prevent injustice due to faulty memory, which requires that
certain contracts must be in writing otherwise unenforceable
a. Statute of limitation
b. Law on sales
c. Statute of frauds
d. Pactum comissorium
64. G was appointed as guardian of M, the latter being 17 years old. Later, without authority from G, M
sold G’s watch in writing to B valued at P100,000 for P70,000. Suffering lesion by more than ¼ of
the value, the contract is
a. Voidable
b. Unenforceable
c. Void
d. Rescissible
65. I. Unless the contrary appears, advertisement for bidders are simply invitations to make proposals,
and the advertiser is not bound to accept the lowest or highest bid.
II. Contracts agreed to in a state of drunkenness or during a hypnotic spell are void.
a. True, true
b. True, false
c. False, true
d. False, false
66. The obligation is demandable on the date of the obligation and shall continue to be in force up to the
arrival of the day certain:
a. Resolutory period
b. Suspensive period
c. Indefinite period
d. Legal period
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67. A, B and C secured a loan from D. The promissory note which evidences the obligation states: “I
promise to pay D or order P10,000 payable on demand” (Sgd) A B C. The obligation is
a. Solidary
b. Divisible
c. Indivisible
d. Joint
68. The mortgagor will execute an instrument to transfer the ownership over the property mortgaged to
the mortgagee if the debt is not paid at maturity is
a. Void
b. Voidable
c. Valid
d. Unenforceable
69. One is not a requisite needed in order that 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 is lost before the debtor has incurred in delay.
d. When the thing lost is specific
70. In 2012, A, 17 years old sold his ring to B of legal age payable in 3 equal annual payments. B paid in
2012, 2013 and 2014 as agreed upon. In 2015
a. A can ask for annulment c.
b. B can ask for annulment
c. The contract is without defect
d. Either A or B can ask for annulment
71. A and B executed a contract on January 12, 2015 where A agreed to sell and B agreed to buy A’s only
fighting cock. The agreement provides that the delivery of the cock is to be made on June 24, 2015 at
which time B would pay the agreed price of P2,000. On June 9, 2015, A sold the same fighting cock to
C. B asks for your advice, assuming there is no delivery yet of the cock to C.
1st Advice B may sue for damages, on June 9, 2015 without the need of demanding delivery
because it is useless, the object was sold to a third person acting in good faith.
2nd Advice B may sue for damages after the arrival of the stipulated period, that is June 24,
2015 because the right of B to sue will only accrue on June 24, 2015.
a. Both advice are correct
b. Both advice are wrong
c. First is correct, second is wrong
d. First is wrong, second is correct
72. A offered to sell her watch to B for P1,000. B offered to buy the watch for P800 but it was rejected by
A. When B turned to go away. A called him and said she is now willing to sell the watch for P800.
May B refuse to buy said watch?
a. No, there is a meeting of the minds between the parties or the subject matter and the cause of the
contract.
b. Yes, because B made a counter offer which was rejected by A.
c. Yes, because the agreement is under the statute of frauds.
d. No, because B’s offer of P800 was accepted by A.
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73. A offered to sell his house and lot to B for P2,000,000, who was interested in buying the same. In his
letter, A stated that he was giving B a period of one month within which to raise the amount. One
week before the expiration of the one-month period. A told B that he is no longer willing to sell the
property unless the price is increased to P3,000,000. May B compel A to accept the 2,000,000 first
offered?
a. Yes, because the period is deemed for the benefit of B as it was A who voluntarily offered
the period to B.
b. No, because the promise to sell had no cause or consideration distinct from the selling price
c. No, because the increase in the price is 50% and is deemed unconscionable
d. Yes, because this is an obligation with a period and a period is deemed for the benefit of
both parties.
74. A leased his property to B. Part of the premises was subleased by B to C. B violated the conditions of
the lease, so A wanted to rescind the lease contract. Which is correct?
a. A cannot rescind the lease contract as the sublease would naturally be affected
b. A may rescind the lease contract and is not bound to respect the sublease
c. B may object to the cancellation of the contract because he is not a party to the violation
d. A can rescind the lease contract provided he respects the sublease
75. An employee embezzled a sum of money from her employer, and in order that she would not be
prosecuted, her husband signed a promissory note to pay the amount embezzled, with interest to the
victim, which is correct?
a. The recovery shall be limited only to the amount embezzled without any interest
b. The employer may recover from the husband of the employee and may still prosecute the
employee
c. No recovery can be made on the note because the consideration is illicit
d. The husband is liable because the note was executed by the husband voluntarily
76. A and B agreed on a certain contract, but A fraudulently made a document reciting another kind of
contract. Later both A and B died. Which is correct?
a. Only the son of B may bring an action to reform the instrument
b. Either the son of A or the son of B may bring an action to reform the instrument
c. Neither the son of A nor the son of B may bring an action to reform the instrument
d. Only the son of A may bring an action to reform the instrument
77. X obliged himself to pay Y the amount of P30,000 30 days after January 31, 2015 plus a penalty of
P3,000 if he fails to pay the obligation on due date. After demand for payment by Y, X offered to pay on
June 30, 2015. Y can demand from X:
a. P30,000 plus legal interest
b. P30,000 plus P3,000.
c. P30,000 plus P3,000 plus legal interest plus damages.
d. P30,000 plus P3,000 plus legal interest
78. In a contract of sale of a hardware store (construction materials) it was stipulated that the seller shall
not open or have any interest directly or indirectly in any hardware store either in his own name or in
the name of another or have connection with or be employed in any hardware store for a period of one
year or within three kilometers from Barangay Ginebra, San Miguel, Bulacan. Are these stipulations/
restrictions upon the seller valid?
a. No, the stipulations are in restraint of trade
b. Yes, the restrictions imposed are only on a limited scale
c. Yes, as long as the agreement is made in writing
d. No, the agreement is contrary to public policy as the seller is deprived of a means of livelihood
79. A insured his residential house for P5,000,000 on January 1, 2015. On June 30, 2015 B burned the
insured property. Which is not correct?
a. The insurer shall be subrogated to the rights of A after payment to A
b. After payment the insurer shall have the right to proceed against B
c. A should proceed against B, the guilty party and not against the insurer
d. A can proceed against the insurer and collect the P5,000,000 policy
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80. A bought a house and lot in a subdivision subject to the condition that they shall be used for residential
purposes only. The condition was annotated on the certificate of title. Ten years later, A sold the
property to B who converted same into a restaurant. The owner of the subdivision demanded the
closure of the restaurant but B refused on the ground that the lot became commercial because of its
proximity to some stores and a shopping center in an adjoining subdivision. Furthermore, the lot has
been reclassified into commercial by an ordinance passed by the City Council. Which is correct?
a. The stipulation between the owner of the subdivision and A is valid and shall bind B
b. B should first ask for the cancellation of the annotation on his certificate of title prohibiting the use
of the lot for purposes other than residential
c. The stipulation that the lot shall be used exclusively for residential purposes becomes ineffective
because of the conversion of the land into commercial by ordinance as a valid exercise of the police
power of the state
d. B cannot convert the lot into a commercial lot because of the restriction on the certificate of title
81. A sold to B his cow 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 cow within the reasonable time from the perfection of the contract
b. To deliver the cow upon the payment by B of P5,000
c. To rescind the contract as there is no time fixed for the delivery and payment
d. To deliver the cow immediately as there is a perfected contract
83. They refer to the elements that may be stipulated by the contracting parties
a. Natural elements
b. Moral elements
c. Artificial elements
d. Accidental elements
84. They are the elements that are found in certain contracts and are presumed to exist unless set aside by
the parties
a. Natural elements
b. Artificial elements
c. Incidental elements
d. Accidental elements
86. 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,
refer to the principle of
a. Relativity of contract
b. Consensuality of contract
c. Mutuality of contract
d. Liberty of contract
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87. Not a requisite of stipulation pour autrui
a. The stipulation must be part of the contract
b. The third person communicated his acceptance to the obligor before it revocation
c. There must be an agency between either of the parties and the third person
d. The contracting parties must have clearly and deliberately conferred a favor upon third person
93. A, B and C are jointly liable to D in the amount of P9,000. D assigns the entire credit to A. In this case
a. The obligation is extinguished because of confusion
b. B and C will not be liable to A
c. A becomes the new creditor and may demand from B and C P4,500 each
d. A’s share in the obligation is extinguished because of confusion
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95. If a third person pays for the debtor with the consent of the debtor, he
a. Can recover only in so far as the payment has been beneficial to the debtor
b. Can recover the amount he has paid but he shall not acquire the rights of the creditor
c. Can recover the amount he has paid or the payment that has benefited the debtor whichever is lower
d. Can recover the amount he has paid and he shall acquire the rights of the creditor such as those
arising from a mortgage, guaranty or penalty
96. A is indebted to B with C as guarantor. B assigns the credit to D, who in turn assigns the credit to C.
Which is correct?
a. The obligation of A is extinguished
b. The assignment to C did not affect the obligations of C as guarantor
c. The assignment by B to D extinguished the guaranty
d. C becomes the new creditor of A
97. A obtained from B a loan for P1,500 with interest at 10% per annum, the payment of which loan was
secured by a guaranty secured by C. After the maturity of the loan, D a friend of A, went to B and paid
the latter, without the knowledge of A, P1,400 for said loan and thereupon B signed and delivered to
D a receipt of this tenor “Received from D P1,400 in full payment of A’s obligation in my favor. Sgd.
B”. Which is correct?
a. D may recover from A the amount of obligation, that is P1,500, because A was benefited up to
P1500
b. D may recover from A P1,500 plus interest
c. D may recover from A P1,400 plus interest
d. D may recover from A P1,400 without interest
98. Using the preceding number, in case A has nothing with which to pay. D may exact from the
guarantor.
a. P1,500
b. P1,400
c. P1,400 plus interest
d. Nothing
99. A was supposed to pay B P10,000 on June 30, 2015. Believing that the obligation was due and
demandable already on June 30, 2014, A paid B the P10,000 on said date. How much may A recover
from B on December 31, 2014?
a. P10,000 without interest because A voluntarily paid his obligation
b. None, because A voluntarily paid his obligation
c. P5,000 because ½ year has elapsed after A effected payment
d. P10,000 plus interest because when A effected payment he was unaware of the period
100. If one debt is P12,000 and the other is P6,000 and the debtor without making any application of
payment gives P3,000, how should said payment be applied, presuming that both debts are of the same
nature and burden?
a. The payment will be applied to the P12,000 debt
b. The payment will be applied to the P6,000 debt
c. The payment will be applied equally
d. The payment will be applied proportionately
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102. In order that fraud may make a contract voidable:
a. It may be incidental but both parties should not be in pari delicto
b. It may be serious and the parties must be in pari delicto
c. It may be incidental but should have been employed by both parties.
d. It should be serious and should have not have been employed by both contracting parties.
103. A, the father of B, was indebted to C in the amount of P1M. A died without paying the indebtedness.
B inherited from A properties worth only P400,000. B paid C the amount of P1M one month after
A’s death. Can B ask for the refund of what he paid to C?
a. Yes, but only up to P600,000
b. Yes, but only up to P400,000
c. No, the obligation of the father is also the obligation of the heirs under the principle of relativity of
contracts.
d. No, because the heir voluntarily paid the debt of the decedent.
104. One of the stipulations contained in the contracts between a company and its employees is that the
company shall pay a bonus to any employee of the company who shall continue their employment for
at least two consecutive years unless he quits or is discharged before the expiration of the period of
two years. X, an employee of the company was discharged one week before the completion of the two
year period
(1) If X is discharged with just cause, he is nevertheless entitled to the bonus because when the
company voluntarily impedes the performance of the condition, it will be deemed performed.
(2) If X is discharged without just cause, he is entitled to the bonus because when the debtor
voluntarily prevents the performance of the condition, it is deemed fulfilled
a. true, true
b. true, false
c.false, true
d. false, false
105. A contract in writing for the sale of movable property between a minor and an insane person is
a. Void
b. Voidable
c. Rescissible
d. Unenforceable
107. The following statements pertain to the cause of a contract. Which statement refers to motive?
a. It is the essential reason of a contract
b. It is always known to the contracting parties
c. Its illegality does not affect the validity of the contract
d. There will be no contract without it
The End!!
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