CIVIL LAW REVIEW 2

SECOND SEMESTER 2014

COLLEGE OF LAW, UC

FINAL EXMINATION

SET A

NAME:
SECTION:

Instructions: Read each question or problem carefully. Choose the CORRECT or BEST
answer and write the Letter of your choice in your notebook. GOOD LUCK!!!

1. What is the nature of a contract of loan?

a. Commodatum and loan are consensual contracts. They are perfected

upon the meeting of the minds of the parties.
b. Commodatum and loan are formal contracts. They have to be in writing to
be valid and enforceable.
c. Commodatum and loan are contracts which fall under the Statute of
Frauds. The agreement of the parties must be in writing in order to
be enforceable.
d. Commodatum and loan are real contracts. They are perfected by the
delivery of the object loaned.

2. What are the two kinds of loans?

a. Guaranty and pledge

b. Mutuum or simple loan and Commodatum
c. Antichresis and Mortgage
d. Solutio Indebiti and Negotiurum Gestio

3. Is an accepted promise to deliver something by way of commodatum or simple

loan binding upon the parties?

a. No, there must be the delivery of the thing loaned because, just like a
contract of loan, an accepted promise to loan is also a real contract.
Delivery is essential for its validity.
b. Yes, but the commodatum or simple loan itself shall not be perfected
until the delivery of the object of the contract.
c. Yes but the accepted promise to loan must be in writing as well as the
loan contract itself for purposes of enforceability.
d. Yes, an accepted promise to loan is a consensual contract which
needs no other formality for its validity other than the accepted
promise to loan.

4. What is commodatum?

a. It is a contract wherein one of the parties delivers to another, either

something not consumable so that the latter may use the same for
a certain time and return it or money or other consumable thing, upon
the condition that the same amount of the same kind and quality shall
be paid.

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 b. Commodatum is a gratuitous or onerous contract the subject matter of
which is a fungible thing which must be returned in its equivalent
amount or of the same thing with the same quality.

c. Commodatum is a real, principal contract, it is essentially gratuitous

and a personal contract where one of the parties delivers to another
a none consumable object, so that the latter may use the same for a
certain period and later return it.

d. Commodatum is the delivery of property by one person to another in trust

for a specific purpose, with a contract, express or implied, that the first
shall be faithfully executed and the property returned or duly accounted for
when the special purpose is accomplished or kept until the bailor reclaims
it or returns a thing of the same amount and quality.

5. What does a bailee acquire in commodatum?

a. The bailee in commodatum acquires the use of the thing loaned but
not its fruits; otherwise, the contract may be one of usufruct.
b. The bailee in commodatum acquires the ownership of the thing with the
obligation to return another of the same amount or of the same quality.
c. The bailee merely receives the right to enjoy the thing loaned with the
obligation to pay interest.
d. The bailee merely acquires beneficial title to the thing loaned with the
obligation to pay interest after its use and to return a thing of similar kind
and quantity.

6. Is a stipulation that the bailee may make use of the fruits of the thing loaned
valid?

a. No, otherwise this would constitute a contract of antichresis where the

fruits are to be applied first to the payment of interest then to the principal.
b. Yes, the bailee is entitled to the fruits and in fact, acquires ownership over
them. This is the essence of the use by the bailee in a contract of loan
c. Yes, provided the right to get the fruits is merely incidental and not
the main cause of the contract.
d. No, the right to the fruits and its ownership remain with the bailor. If the
bailee makes use of the fruits this would already constitute an act of
ownership which is not one of the characteristics of a contract of loan. The
contract entered into would be something else other than a contract of
commodatum.

7. A borrowed B’s truck. During a fire which broke out in A’s garage, he had time to
save only one vehicle and he saved his car instead of the truck. Is he liable for
the loss of B’s truck? Why?

a. A cannot be held liable because the loss of the truck he borrowed from B
was due to a fortuitous event. No one can be held liable for a fortuitous
event.
b. A is liable for the loss of B’s truck. The contract entered into between
them is a contract of loan where the bailee is liable for the loss of the
thing even if it should be through a fortuitous event, if, being able to
save the thing borrowed or his own thing, he chose to save the latter.
c. A is liable for the loss of B’s truck because of the negligence of A. The
truck would not have been loss had there been due diligence on the part
of A. A contract of loan is based on trust and confidence and by reason of

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 the negligence of A, this trust and confidence and the obligation to take
due care of the thing loaned has been breached by A.
d. A is liable to B for the loss of the latter’s truck despite the happening of a
fortuitous event. A contract of loan is based on trust and as such the
degree of diligence necessary to preserve the thing loaned must be
extraordinary diligence and any loss of the thing not due to purely force
majeure shall constitute negligence on the part of the borrower.

8. What is a contract of precarium?

a. A contract of precarium is a real, principal, essentially gratuitous and a

personal contract where one of the parties delivers to another a none
consumable object, so that the latter may use the same for a certain
period and later return it.
b. A contract of precarium is a contract of commodatum where the
bailor has the right to demand the return of the thing at anytime,
which is the object of the contract at will.
c. It is a contract wherein one of the parties delivers to another, either
something not consumable so that the latter may use the same for
a certain time and return it or money or other consumable thing, upon
the condition that the same amount of the same kind and quality shall
be paid.
d. A contract of precarium is a contract for the use of a property of another
with the consent of the other, either expressly or impliedly, and with the
obligation to return the thing loaned upon demand.

9. Is it necessary that the bailor in commodatum is also the owner of the thing
loaned?

a. Yes, otherwise he cannot loan out the property to another because such a
contract constitutes an act of ownership. The period in a contract of loan
may be for a period longer than a year and any act granting the use of
another’s property for over a year constitutes an act of ownership.
b. Yes, provided that that he must get the consent, express or implied, of the
owner to loan the thing to another. The failure to secure the consent of the
true owner of the property will not result in a valid and enforceable
contract of loan.
c. No, the bailor in a commodatum need not be the owner of the thing loaned
for as long as he has, in the meantime, the right to make use of the
property of another he may loan the same to someone else. However, the
contract of loan need not be respected by the owner of the property unless
he has received some consideration in allowing or ratifying the loan
contract.
d. No, because the contract of commodatum does not transfer
ownership. All that is required is that the bailor has the right to the
use of the property which he is lending, and that he be allowed to
alienate this right to use.

10. A is indebted to B for P500,000, B later borrowed A’s car but refused to return it
on the ground that A owed him some money. Is B correct?

a. No, B is not correct. The bailee cannot retain the thing loaned on the
ground that the bailor owes him something, even though it may be by
reason of a different contract.
b. No, B is not correct. The bailee cannot retain the thing loaned on
the ground that the bailor owes him something, even though it may
be by reason of expenses.

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 c. No, there can be no right of retention even if the bailor and bailee are
mutually principal debtors and creditors to one another in another
contract between them. There can be no right of retention if one
contract proceeds from a contract of commodatum and the other
contract proceeds from a contract of payment of a monetary debt.
d. No , there is no right of retention in a contract of commodatum unless it is
by reason only of payment of damages suffered by the baillee on
account of the failure of the bailor to inform him of hidden defects of
the thing loaned.

11. Interest payable in kind must be appraised in:

a. Market value
b. International value
c. Local value
d. Current value

12. Miley Cyrus, borrower borrowed money from Avril Lavigne. No interest was
stipulated. If by mistake she pays also interest on the principal, is Avril Lavigne
obliged to return?

a. Yes applying the rule on solutio indebiti.

b. Yes this is a case of accion in rem verso
c. No, there is a natural obligation constituted between the parties.
d. No. because all monetary obligations must include, even if not agreed
upon, the payment of interest which at the very least must be legal
interest.

13. The following are necessarys except:

a. Made in compliance with a legal obligation

b. Made by travelers in hotels or inns.
c. Made by travelers with common carrier
d. Made on the occasion of official duties

14. When is there a perfected contract of deposit?

a. Upon the delivery of the object of deposit to the depositary.

b. Upon the meeting of the minds of the parties as to the object that will
constitute the deposit and such other terms and conditions agreed upon.
c. Upon the execution by the parties of the public document evidencing the
contract of deposit.
d. Upon the registration with the proper registry of the contract of deposit
embodied in a public instrument.

15. A deposit to guarantee the right of the plaintiff in case of favorable judgment is
called:

a. Levy
b. Execution
c. Foreclosure
d. Judicial

16. What contract is entered into when the thing delivered can be used by the
depository and he is obliged to pay interest for said use.

a. mutuum

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 b. deposit
c. commodatum
d. barter

17. Walter left his house to James with the instructions that the latter would watch
over it, preserve it and keep the house safe. What contract was entered into
between Walter and James?

a. deposit
b. lease of services
c. antichresis
d. loan

18. What kind of deposit is the deposit of things because of a calamity?

a. Voluntary
b. Forcible
c. Onerous
d. Necessary

19. Should the depositor be the owner of the thing deposited?

a. Yes. Only a person who is the true owner of the thing deposited or his duly
authorized representative may constitute a deposit.
b. No, the depositor need not be the owner of the thing deposited since a
deposit is not an act of ownership.
c. Yes, one who enters a contract of deposit must be the true owner of the
thing or have at the very least beneficial title to the same. Where
one is not the owner of the thing deposited, the depositary is under
obligation to return the thing immediately to the depositor or to inform the
true owner that he has the thing in his possession.
d. No. A deposit may even be made by two or more persons each of
whom believes himself entitled to the thing deposited with a
third person, who shall deliver it in a proper case to the one to
whom it belongs.

20. If the deposit has been made by a capacitated person with another who is not,
what are the remedies available to the depositor?

a. To recover the thing deposited

b. To compel the latter to pay him the Fair Market Value of the thing
deposited
c. To recover the thing from a third person regardless of either good faith or
bad faith on the part of the third person
d. The depositor cannot recover the thing deposited, incapacity of the
depositary absolves the person from any obligation.

21. What is/are the principal obligations of a depositary?

a. Return the thing deposited

b. For safekeeping of the thing deposited
c. To take care of it with the diligence of a good father of the family
d. To keep the thing safely and to return it

22. What is the effect on the degree of care the depositor must exercise if the deposit
is gratuitous or onerous?

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 a. More care is required if the deposit is for a compensation than if it is
gratuitous
b. It does not affect the degree of care to be observed by the depositary. In
either case the degree of care will be that as stipulated by the
parties.
c. In case of deposit for compensation the degree of care should be
extraordinary diligence. While for a gratuitous deposit, the degree
of care shall be ordinary diligence
d. Diligence of a good father of family is required in either gratuitous or
onerous deposits

23. A fire destroyed the thing deposited. It was proved that the fire was neither
intentional nor caused by the fault of the depositary who as a matter of fact had
even attempted to save the goods. Is the depositary liable for the loss of the thing
deposited?

a. Yes. He is liable for the loss of the thing deposited because he is required
to keep the thing deposited, preserve it, and to return the same.
b. No. he is not liable for the loss of the thing deposited because it is
not his fault.
c. Yes. He is liable even if it due to a fortuitous event because this
constitutes a contract of deposit.
d. No. The depositor should bear the loss. It is part of the risks in the contract
of deposit.

24. Can a depositary deposit the thing with a third person?

a. No. He cannot deposit the thing with a third person because it is contrary
to the contract of deposit.
b. Yes. He can deposit even without the consent of the depositor.
c. No. He cannot deposit because it is always prejudicial to the interest of the
depositor.
d. Yes. He can deposit the thing with a third person if so stipulated in
the contract.

25. A deposited a car with B. A allowed B to deposit the car with a third person. B
then deposited the car with C. If through C’s carelessness, the car is destroyed.
Who should be liable for the loss the car?

a. B should be liable provided C is a person who is manifestly careless.

b. C should be liable because the obligation to keep and return the thing
deposited has been completely transferred to him.
c. A is liable for the loss because of the risks involved in a contract of
deposit.
d. B is not liable because the depositary allowed B to deposit the car with a
third person.

26. Can a depositary change the way of the deposit?

a. No. It is presumed that the depositor will not consent to the change
b. Yes. It is presumed that the depositor will consent to the change
c. No, unless he may reasonably presume that the depositor would
consent to the change if he knew the facts of the situation
d. Yes, provided it improves the thing deposited and the depositor will
consent to the change afterwards

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27. A deposited a car with B in garage No. 1. If B builds garage No. 2, which is better
than the first, can B put the car in garage No. 2?

a. Yes, because it is better for the car

b. No, the contract only stated garage No. 1
c. Yes, provided B should notify A then waits for the decision
d. No. It is presumed that A does not consent to the transfer

28. What is the reason for the rule that the depositary may change the way of the
deposit if under the circumstances he may reasonable presume that the
depositor would consent to the change if he knew the facts of the situation?

a. It is based on the principle that the depositary must take care of the thing
with the diligence of the a good father of a family
b. It is based on the principle that the depositary must take care of the
thing with the due diligence under the circumstances
c. It is based on the principle that the depositary must take care of the thing
with extraordinary care
d. It is based on trust and confidence principle

29. The following are the duties of a depositary holding certificates, bonds, securities
or instruments which earn interest, except:

a. To collect interest when it becomes due

b. To take steps as may be necessary in order that the securities may
preserve their value
c. To take necessary steps to preserve the rights appertaining thereto
d. To file the proper actions if necessary in behalf of the depositor

30. A deposits with B a negotiable promissory note bearing interest, which interest is
due every six months. What should A do?

a. To collect the interest even in advance to ensure payment.

b. To collect the interest only when they fall due
c. To compel the debtor to pay even the capital
d. To notify the depositor that the interest became due

31. If a depositary is holding certificates, bonds, securities or instruments which earn

interest, what part is the depositary bound to collect?

a. Interest only
b. Capital
c. Capital including interest
d. The depositary is not duty bound to collect

32. A received from B a deposit of 4 cavans of rice, and from C 7 cavans of the same
kind of rice. Can A commingle the 11 cavans of rice?

a. Yes, unless there is stipulation to the contrary

b. No, because he can no longer determine ownership of the rice
c. Yes, provided he will be able to identify them
d. No, because B and C did not give their express consent

33. What is the effect if there is a commixtion of grains and other articles of the
same kind?

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 a. The depositors will become co-owners of the commixed articles
b. The depositors will have their proportionate interest in the mass
c. The depositary is responsible for distributing each depositor’s share
d. The grains or articles will lose their identity and the depositary shall be
liable for damages

34. Can a depository make use of the thing deposited?

a. No, it is presumed that the depositor does not allow it

b. Yes, it the nature of the contract of deposit to allow the depositary to use
the thing provided it is for purposes intended
c. No, unless there was express permission by the depositor
d. Yes, in order for the thing not be destroyed due to non-use.

35. Juan deposited a radio-phonograph set with Peter. Can Peter use the thing
deposited?

a. Yes, he can use it even without permission of Juan because it is an

implied privilege in a contract of deposit
b. Yes, he can use it in order to preserve the thing so as to function
properly
c. No, because express permission by the depositor is needed at all times
d. No, there is no implied privilege to use the thing deposited

36. What is the exception to the rule that the depositary cannot make use of the thing
deposited?

a. Necessity, to maximize the purpose of the thing

b. Preservation of the thing if the thing requires its use
c. As a matter of right on the part of the depositary specially when it is
gratuitous
d. As a matter of privilege on the part of the depository specially when it is
gratuitous

37. What justifies the use of the thing deposited by the depositary?

a. Permission by the depositor and as a matter of right

b. Permission by the depositor and as a matter of privilege
c. For preservation purposes, as a matter of right, and as a matter of
privilege when gratuitous
d. For preservation purposes and permission by the depositor

38. What happens when the depositary has permission to make use of the thing
deposited?

a. It does loss its concept as a contract of deposit

b. It losses the concept of deposit and becomes a loan
c. It losses the concept of deposit and it creates a creditor-debtor
relationship automatically
d. It will governed by the rules of the contract most analogous to it

39. When the depositary has permission to use the thing deposited, the contract
loses the concept of a deposit and becomes a loan or commodatum, what is the
exception?

a. If the contract states otherwise

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 b. If the depositor intends otherwise
c. If the depositary consents to the same
d. If safekeeping is still the principal purpose

40. Joan deposited a sum of money with Susan who later authorized the use of the
same. What is the effect of the authorization?

a. The contract shall be governed by the rules of commodatum automatically

b. The contract shall be governed partly by the contract of deposit and the
contract of loan
c. It does not affect the nature and concept of the contract of deposit
d. The contract becomes one of loan

41. Mr. Chan, a hoarder, deposited 5 kilos of sugar with his long time business
partner Mr. Ching. Later, Mr. Chan authorized Mr. Ching to use the sugar but
safekeeping is still the principal purpose of the contract. What is the name of this
contract?

a. Contract of Regular Deposit

b. Contract of Irregular Deposit
c. Mutuum
d. Commodatum

42. Pnoy deposited 50 sacks of palay with Bro. Luis so that it would be threshed into
rice. What kind of contract is this?

a. This is actually a contract of service

b. This is a still a contract of deposit
c. This is a contract of loan
d. This is a contract of service but after it was threshed it would continue to
be a contract of deposit for them to return upon demand

43. Pnoy deposited money, consisting of coins of legal tender, with Mr. Money
Pakyaw. Subsequently, Pnoy authorized Mr. Pakyaw to use and dispose the
same. The agreement thus entered between the depositor and the depositary is:

a. A contract of Deposit
b. A contract of Irregular Deposit
c. A contract of usufruct
d. A contract of loan

44. Can the right to demand return of the thing deposited prescribe?

a. Yes it generally prescribes

b. No, it does not prescribe, for the depositary cannot claim ownership
of the thing deposited
c. Yes, possession by the depositary can ripen into prescription if the
depositor will not demand return for a long period of time
d. No, because the right to demand cannot be removed from the depositor

45. The depositary is liable for the loss of the thing through a fortuitous event in the
following instances except:

a. If it is stipulated
b. If he delays the return
c. If he uses the thing with the depositor’s permission

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 d. If he allows others to use it, even though he himself may have been
authorized to use the same

46. Pnoy deposited a car with Gloria Estepania to be returned to him upon returning
from a foreign travel in Singapore. Gloria Estepania was worried that the car will
not function properly if it is not used for a long time. She then decides to lend the
car to Atong for a test drive. While on test drive, Atong was stricken by lightning
at Mendiola where he died instantly and leaving the car totally wrecked and
beyond recovery. Is Gloria Estepania liable for the loss of the car?

a. No, because it was due to a fortuitous event

b. No, because it was not her fault, it was Atong’s fault for passing Mendiola
that time
c. Yes, because she was negligent is choosing Atong to test drive the car
d. Yes, because she allowed Atong to use it even without Pnoy’s permission

47. Pnoy deposited his car, a Nissan Patrol Safari – Limited Edition, with Mike
Zarroyo, to be returned to him upon his return from a honeymoon at South Africa
with Sha-arni. When Pnoy returned to the Philippines, Mike Zarro-yo forgot to
return the car to Pnoy because he was busy preparing for his travel to Las Vegas
to watch PACMAN. Then Typhoon Undoy struck Manila leaving the whole
metropolis submerged in water. As a result, the Nissan Patrol car was turned into
useless garbage. Is Mike Zarro-yo liable for the loss of the car?

a. Yes, because he is in delay

b. No, because it was due to a fortuitous event
c. Yes, because he was negligent
d. No, because Pnoy did not demand return

48. In cases of fixed, savings, and current deposits of money in banks and similar
institutions, what law shall govern them?

a. Provisions on simple loan

b. Provisions of Deposit
c. Provisions of Irregular Deposit
d. Provision on commodatum

49. When a person opens a savings or current account in a bank and similar
institutions, what is the relationship created?

a. Depositary – Depositor
b. Debtor – Creditor
c. Lessor-Lessee
d. Debtor – Depositor

50. Can a bank compensate a debtor’s debt with the bank with the debtor’s deposit
in said bank?

a. No, because the relationship between them is that of a depositor and a

depositary
b. No, because consent of the depositor is always necessary
c. Yes, because the relationship between them is that of a creditor and
a debtor
d. Yes, because the relationship between them is that of a depositor and a
debtor

51. Can a bank make use of the current and saving deposits of its clientele?

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 a. Yes, because it is presumed that the depositor permitted it
b. No, it would violate the trust and confidence reposed on it by the depositor
c. Yes, because current and savings deposits are loans to a bank
d. No, because there must be an express or implied permission by the
depositor

52. X went to the PNB and opened a time deposit. What law shall govern their
contractual relationship?

a. The Corporation Code

b. Law on loan
c. The Charter creating PNB
d. Law on Deposit

53. A deposited P10,000 in his current account with X Bank. Subsequently, the Bank
was declared insolvent. During the insolvency proceeding, A intervened claiming
that the P10,000 deposited does not constitute a part of the assets of the Bank
that will be placed in the possession of the receiver or assignee because he is
still the owner thereof. Will the claim of A prosper?

a. No, the contract perfected was a contract of simple loan, hence, the
ownership of the amount deposited was transmitted to the Bank
upon the perfection of the contract
b. Yes, because the contract is that of a deposit, hence, he can demand the
return of what has been deposited
c. No, because the receivership or assignment is only temporary
d. Yes, because the ownership of the amount deposited still belongs to him

54. Suppose in the problem above, the P10,000 had been placed in a box, properly
sealed, marked and identified as A’s property, and such box was found in the
vaults of the Bank, would that make any difference in your answer?

a. No, the contract perfected is still a contract of simple loan, hence, the
ownership of the amount deposited was transmitted to the Bank upon the
perfection of the contract
b. Yes, because the contract this time is that of a deposit, hence, he
can demand return of what has been deposited
c. No, it does not make a difference because the receivership or assignment
is only temporary
d. Yes, because this time the relationship created is that of a depositor and
debtor

55. When the thing deposited is delivered closed and sealed. What does the
depositary do?

a. Open it in order to prevent the possibility of misdeclaration by the

depositor
b. To return the same in the same condition it was received
c. To open the same then communicate its contents the depositor
d. Not to accept the deposit because of the secrecy as to the items for
deposit

56. When the thing deposited is delivered closed and sealed and the seal or lock is
broken, is the depositary liable?

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 a. No, provided he can prove that it was not his fault but the fault of his
employee
b. No, because under ordinary circumstances, seals and locks break on its
own
c. Yes, fault on the part of the depositary is presumed
d. Yes, if it is stipulated

57. When the seal or lock is broken, with or without the depositary’s fault. What
should the depositary do?

a. Communicate the same to the depositor immediately

b. He shall keep the secret of the deposit
c. Open the thing to make inventory
d. Deposit the same to the court

58. A, the depositor, instructed B, the depositary, to take insurance on the thing
deposited. C, the agent of the Insurance Company, insurer, asks B to give him
opportunity to examine the thing deposited to appraise its insurable value, and
also to estimate the risks the Company would assume, so that he may decide the
rate premium to be imposed. Since the thing deposited is in a box, may B open
the box?

a. No, it should be with the presence of A

b. Yes, it is incumbent upon him because it is always presumed that he can
do so
c. No, he should return the thing in the same condition otherwise we will be
liable damages
d. Yes, it is the only possible way for him to follow the instruction

59. The following are instances when the depositary is not allowed to open the
sealed or locked thing deposited, except:

a. When it becomes necessary to open a locked box or receptacle

b. The depository is presumed to do so
c. When the instruction of the depositor as regard the deposit cannot
be executed without opening the box or receptacle
d. When it is in his opinion, there is a need to open it

60. Pnoy maintains several deposit boxes for his secret jewelry and other collectible
items. When he left for the US to meet President Osama, he deposited them with
Mr. Savit Chingson, a depositary, and at the same time delivered the keys to the
deposit boxes. Can Savit Chingson open the deposit box?

a. No, there was no express authorization from Pnoy

b. Yes, it is his duty as a depositary
c. No, as a rule he is not allowed to do so
d. Yes, he is presumably authorized by the delivery of the keys

61. The following are the items that should be returned by the depositary together
with the thing deposited, except:

a. Its products
b. Cost of borrowing
c. Accessories
d. Accessions

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62. What if a part of the thing deposited consists of money and the depositary used it
to pay his obligation, what should he return to the depositor?

a. Accessions and accessories

b. Products, accessions and accessories
c. Interest, products, accessions and accessories
d. Damages, interest, products, accessions and accessories

63. Can a depositary demand that the depositor prove his ownership of the thing
deposited?

a. Yes, in order to protect himself from being part of any crime

b. Yes, to prove to himself that the depositor has lawful claim over the thing
to be deposited
c. No, he cannot demand that the depositor prove his ownership of the
thing deposited
d. No, it violates the right of the depositor to the secrecy of a deposit

64. What if the depositary discovers that the thing deposited with him has been
stolen and who the true owner is, what must he do under the law?

a. Not to accept the deposit

b. He must advise the true owner of the deposit
c. He must call the attention of the proper authorities
d. He must accept the deposit then deliver the same to the owner

65. What is the period given to the true owner to claim the thing deposited from the
time the depositary informed him that the depositary has with him said property?

a. 15 days
b. 20 days
c. 25 days
d. 30 days

66. What is the effect if the owner of the thing, in spite of the information given to him
by the depositary that he has the same in his possession, does not claim the
property?

a. The depositor becomes the lawful owner of the thing

b. The depositary shall be relieved of all responsibility by returning the
same to the depositor
c. The period can be extended for another period not exceeding two months
d. It becomes the property of the depositary

67. If the depositary has reasonable grounds to believe that the thing has not been
lawfully acquired by the depositor, what can he do under the law?

a. Inform the proper authorities for investigation

b. Require the depositor to indicate the lawful owner
c. He may return the same
d. Not to accept the deposit

68. A and B deposited with C P1, 000, without stating what amount belongs to each.
Can A claim from C return of the entire amount deposited?

a. Yes, the depositors are presumed solidarily bound

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 b. No, he is not allowed to claim the whole amount. It is presumed that B did
not permit him
c. Yes, provided the depositary consents
d. No, he can only demand his share

69. What if A and B deposits 1,000 sacks of rice to Pnoy, can A demand the return of
all the 1,000 sacks of rice?

a. Yes, the depositors and presumed solidary

b. No, he is not allowed to claim the whole amount. It is presumed that B did
not permit him
c. No, he can only demand for the 500 sacks
d. Yes, provided Pnoy ratifies it later

70. What if the thing deposited by A and B is a car, can A or B alone demand return
of the car?

a. Yes, if there is no contrary stipulation

b. No, A and B are presumed joint owners of the car, so both of them should
demand
c. Yes, because the car is an indivisible thing any of the depositors can
demand all times
d. No, it should be the depositary who should choose who can demand

71. When there are two or more depositors, like and A, B, and C, and there is a
stipulation that the thing should be returned to one of them, say B. Can A go to
the depositary and demand return of the thing deposited?

a. Yes, because he is exercising his right as a co-owner

b. No, there must be a written assent from C to constitute majority
c. Yes, any of them can still demand
d. No, the depositary is bound to deliver to the person designated by
the stipulation

72. The following are necessary deposits except one

a. The deposit of a thing pledged when the creditor uses the same without
the authority of the owner or misuses it in any other way,
b. Those required in suits as provided in the Rules of Court,
c. Those deposits necessarily given for the protection of the contract,
d. Those constituted to guarantee contracts with the government.

73. What is the status of an oral contract of guaranty?

a. Valid and enforceable

b. Valid but unenforceable
c. Voidable
d. Void

74. A borrowed from B 1Million Pesos. C guaranteed and paid the obligation of A
even against the latter's will. Can C recover from A what he has paid to B?

a. Yes, a guarantor can recover from the debtor what the former had to
pay the creditor, even if the guaranty was against the debtor's will.
b. No, a person who pays the obligation of another without the knowledge
and consent of the debtor shall not be entitled to recover what he has paid

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 to the creditor. His recourse is to demand from the creditor what he has
paid.
c. Yes, even a person not interested in the fulfillment of the obligation
may pay the obligation to the creditor for as long as the creditor gives his
consent. Otherwise, this would be a case of unjust enrichment on
the part of the debtor.
d. No, a guarantor who pays the obligation of the debtor against the will of
the debt cannot recover the amount he paid because he is only
subsidiarily liable and should wait for the debtor to pay first and in the
event of his failure to pay, the guarantor may cause the payment of the
obligation.

75. What is meant by continuing guaranty?

a. A continuing guaranty refers to past and future obligations of the debtor to

a creditor and which the guarantor obligates to secure.
b. A continuing guaranty refers to two or more transactions entered into
between a creditor, debtor and the latter’s guarantors to secure
several obligations of the debtor with the creditor.
c. A continuing guaranty refers to the promise and commitment of the
guarantor to guaranty all future obligations of the debtor for an
indefinite period of time or until revoked.
d. A continuing guaranty is one which is not limited to a single
transaction, but which contemplates a future course of
dealing, covering a series of transactions, generally for an
indefinite time or until revoked.

76. A borrowed from B P1 Million. No mortgage was constituted. C guaranteed to B

the payment of A's debt, and to show his sincerity, C even mortgaged his land in
favor of B. If A cannot pay, and C cannot pay, may B foreclose the mortgage on
C's land?

a. No. The obligation of C being merely accessory to A's debt, it should

not be more onerous than the latter. The mortgage in this case
makes the guarantor's liability more onerous than that of the
principal debtor.
b. Yes, a mortgage is indivisible and inseparable and cannot be cancelled
until and unless the obligation of the debtor has been paid by the debtor or
the guarantor.
c. No. The obligation of C being merely accessory to A’s debt he can only be
made to pay the monetary obligation which was what he guaranteed. It
cannot extend to more than the principal monetary obligation to pay the
amount of P1Million pesos.
d. Yes. An obligation may be secured not only by a guaranty but also by a
mortgage. If the principal obligation is not fulfilled the creditor has the
legal right to proceed against any other security constituted otherwise it
would infringe on his right to collect his credit.

77. A borrowed P1Million from B. C guaranteed the obligation. Without C's

knowledge, the obligation was increased to P5Million. What is the effect of this
increased as to the obligation of C?

a. If the indebtedness is increased without the guarantor’s consent, he

is liable only to the amount he originally guaranteed.
b. When C guaranteed the obligation of the debtor without qualification he is
bound to pay the amount not only agreed upon at the time of the

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 constitution of the contract of guaranty but the obligation at
the time of its maturity.
c. C would be liable for the increased amount if the debtor cannot pay the
obligation. A guarantor is an original promisor to the principal
contract and thus commits to pay if the principal debtor cannot pay whatever the
amount is at the time of the maturity of the obligation.
d. If the indebtedness is increased without the guarantor's consent, he
is completely released from the obligation as guarantor or surety.

78. What are the qualifications of a guarantor?

a. The guarantor must have honesty, capacity to contract and sufficient

property.
b. The guarantor must have integrity, capacity to bind and sufficient
property.
c. The guarantor must have had no conviction of a crime involving moral
turpitude, must be capacitated and must have properties whether in
or out of the Philippines.
d. The guarantor must have sufficient property, honesty and integrity.

79. At what time must a guarantor possess the requirement for integrity?

a. The qualification of integrity in the guarantor or surety is required to

be present only at the time of the perfection of the contract of
guaranty.
b. The qualification of integrity must be present during the entire time that the
contract of guaranty subsists.
c. The qualification of integrity must be present at the time of the perfection
of the contract of guaranty and for a reasonable time thereafter.
d. The qualification of integrity must be present at the time that the gurantor
is called upon to answer the obligation of the debtor.

80. The benefit of division against the co-guarantors ceases in the same cases and
for the same reasons as the:

a. Benefit of exclusion
b. Benefit of excussion
c. Benefit of subrogation
d. Benefit of exemption

81. Should there be several guarantors of only one debtor and for the same debt, the
obligation to answer for the same is:

a. Given to any of the guarantors

b. Divided among all of them equally
c. Extinguished
d. Solidary

82. Which of the following cannot be an object of a contract of pledge?

a. A diamond ring
b. A rolex watch
c. A 24 sq.meter land
d. A certificate of stock

83. What is equity of redemption?

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 a. This is the right of the mortgagor to redeem the mortgaged property within
a period of one year from the time the certificate of sale issued by
the sheriff at the public sale was registered with the Registry of
Deeds where the property is located.
b. This is the right of the mortgagor to redeem the mortgaged property
after his default in the performance of the conditions of the
mortgage but before the judicial sale of the mortgaged
property or confirmation of the sale by the court.
c. This is the right of the mortgagor to redeem the mortgaged property after
his default in the performance of the conditions of the mortgage
before the actual judicial sale of the property.
d. This is the right of the mortgagor to redeem the mortgaged property sold a
public auction within a period of two (2) years from the time of the actual
judicial sale of the property.

84. A borrower obtained a loan, delivered the property as security so that the creditor
may use the fruits. But no interest was mentioned and it was not stated that the
fruits would be applied to the interest first and then to the principal. What kind of
contract is this?

a. This is still a contract of antichresis.

b. This is a contract deposit only with respect to the property.
c. This is a real mortgage.
d. This is a contract of commodatum.

85. May an antichretic creditor acquire the property by prescription?

a. No, because he is not a possessor in the concept of an owner but a mere

holder placed in possession of the land by its owner.
b. Yes, because he is a possessor in the concept of an owner and placed in
possession of the land by its owner.
c. No, because he is just an agent of the land owner
d. Yes, because his possession can serve as a title for acquiring dominion.

86. What can the creditor do to exempt himself from the payment of taxes and
necessary repairs?

a. He may always compel the debtor to enter again upon the enjoyment of
the property
b. He may always compel a third person to enter upon the enjoyment of the
property
c. He may always compel a co-creditor to enter upon the enjoyment of the
property
d. He may always compel the co-debtor to enter again upon the enjoyment
of the property

87. In a contract of antichresis, Art. 2137 provides that the creditor does not acquire
the ownership of the real estate for non-payment of the debt within the period
agreed upon. What is sought to be prohibited by this article?

a. Pactum commissorium
b. Pacto de Retro
c. Pacta Sunt Servanda
d. Pacta dant legem contractui

88. A contract of antichresis is

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 a. Indivisible
b. Divisible
c. Mixed
d. All of the above

89. Which of the following statements is/are correct?

a. The debtor’s heir who has paid a part of the debt cannot ask for the
proportionate extinguishment of the antichresis as long as the debt is not
completely satisfied.
b. The creditor’s heir who received his share of the debt cannot ask for the
extinguishment of the antichresis, to the prejudice of the other heirs who
have not been paid.
c. An antichresis is indivisible, even though the debt may be divided among
the successors in interest of the debtor or of the creditor.
d. All of the above

90. If the mortgagor resides in one province, but the property is in another, under the
Chattel Mortgage Law, the registration must be

a. In both provinces
b. Where the mortgagor resides
c. Where the mortgagee resides
d. Where the property is located

91. By a chattel mortgage, personal property is recorded in the Chattel Mortgage

Register as a security for the performance of an obligation. If the movable,
instead of being recorded, is delivered to the creditor or a third person, the
contract is a

a. Pledge
b. Antichresis
c. Deposit
d. Commodatum

92. The following are the bases for quasi-contracts, except:

a. No one must unjustly enrich himself at another’s expense

b. If one benefits, he must reimburse
c. Justice and equity
d. Peace and cooperation

93. The following are examples of Negotiorum Gestio, except

a. If an attorney in fact continues to manage the principal’s estate after the

principal’s death, the former agent becomes a gestor
b. If a co-ownership is illegally partitioned, the possessors become gestors
with the duty to render an accounting.
c. Erroneous payment of interest not due.
d. A and B

94. Who is liable in a Negotiorum Gestio for contracts entered with third persons by
the officious manager who acted in the name of the owner?

a. Officious manager
b. Owner

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 c. Officious manager and owner solidarily
d. Officious manager and owner jointly

95. What kind of liability is imposed upon the owner, possessor or user of an animal
for the damage it may have caused to third person?

a. Vicarious Liability.
b. Solidary Liability.
c. Limited Liability
d. Strict Liability

96. Loreto is a caretaker of carabaos belonging to Mario. One day while he is

attending to the carabaos, one of them gored him to death. Is Mario liable for the
death of Loreto?

a. Yes. Mario is liable being the owner of the carabao, he is bound by the
strict liability rule under article 2183 of the civil code which provides
that “the possessor of an animal or whoever may make use of
the same is responsible for the damage which it may cause,
although it may escape or be lost.
b. Yes. Mario is liable because the carabao is a beast ferocious and
mischievous of its nature. There is a presumption of negligence
against the owner of an animal knowing beforehand the instinct of
the animal.
c. No. Mario is not liable, because the animal was in custody and
control of the caretaker, who was paid for his work as such.
Obviously, it was the caretaker’s business to try to
prevent the animal from causing injury or damage to anyone
including himself. And being injured by the animal under the
circumstances, was one of the risks of the occupation which
he had voluntarily assumed and for which he must take the
consequences.
d. No. Mario is not liable because it is a force majeure. A carabao is a beast
ferocious and mischievous by its nature. The sudden attack on Loreto is
beyond human expectation.

97. Which of the following statements is correct with respect to a contract of

antichresis:

a. The contract of antichresis is not perfected uless there is delivery of the

thing subject of said contract.
b. The contract of antichresis is a consensual contract and can be
perfected without the delivery of the thing given by way of
antichresis.
c. The contract of antichresis is unenforceable unless the same appears in
writing.
d. The contract of antichresis must be in writing for purposes of validity.

98. A final judgment for the payment of a time deposit in a savings bank, which
judgment was obtained after the bank had been declared insolvent, is”

a. A preferred claim against the bank

c. An ordinary claim by the owner of the time deposit
d. Not a preferred claim against the bank
e. Enjoys no preference at all against the bank

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99. Under Article 2242 of the Civil Code enumerating the claims or liens preferred
with respect to specific immovable properties, the order of enumeration means:

a. The order of enumeration constitutes an order of preference

b. The order of enumeration is not an order of preference nor is it exclusive
c. The order of enumeration does not constitute an order of preference.
b. the order of enumeration is an order of enumeration and is an exclusive
enumeration of preferred claims on the specific real property.

100. The credits to which the Civil Code gives preference are:

a. Credits that may be due or not due

b. Credits that are not yet due and demandable
c. Credits that have been proven in a court of law by final judgment
b. Credits that are already due

PART II.

- NOTHING FOLLOWS -

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