OBLICON Reviewer

Quiz 2 24/30

The highlighted green means a new answer

1. A binds himself to deliver to B one of the horses he keeps in his ranch in Calatagan,
Batangas. Before the delivery date, all the horses died during a super typhoon. The
obligation of A is extinguished.

 False
 True (ang answer sa study docu)

2. W borrowed P5,000.00 from Y. On due date, W withdrew from an ATM said amount to
pay Y. On his way to Y's home, W was held up by an armed person. What is the effect?

A. Answer not given

B. The obligation is extinguished.
C. The obligation is not extinguished.

3. X was contracted by Y to arrange for the delivery of 1,000 sacks of charcoal to W in Cebu
City. Later X refused to perform the obligation without valid reason. Y's right is -

A. To have the obligation fulfilled by a third person at the debtor's expense with
damages.
B. Answer not given.
C. To compel performance of the obligation and recover damages.

4. K binds himself to deliver to La Hoover fully automatic washing machine with electric dryer
model RF67863 for P85,000. If K fails to perform the obligation without valid reason, what are
the rights of L?

A. To ask another person to perform the obligation at the debtor's expense with damages.
(eto answer sa study docu)
B. To recover damages for breach of the obligation.
C. To compel specific performance and recover damages for breach of the obligation.

5. On February 1, 2022, A sent an email offering to sell to B his one and only car for P200,000.
The next day B sent a reply with an offer for P150,000.
Does B acquire personal right? If so, when?
 A. Yes, on February 2.
B. No, he does not acquire any right.
C. Yes, on February 1.

6. W sells to X a sewing machine for P10,000. When may either party incur in delay/default?

A. When one party fulfills his obligation and the other does not comply.
B. When the performance of the obligation is simultaneous.
C. When demand is made upon a party who fails to comply with his obligation.

7. X entered into a contract with Y for the delivery of s specific car. It was stipulated that pending
delivery, the car should be deposited at once in a certain warehouse for safekeeping. A week
after, a strong typhoon hit X's residence which destroyed his house including the
aforementioned car. Is the obligation extinguished?

A. Yes, because no person shall be liable for fortuitous event.

B. Yes, because X was in good faith and he should not be held liable for fortuitous event.
C. No, because there was contravention of the terms of the obligation.

8. Z sells his laptop to W for P10,000. Z transports the laptop and W promises to pay three days
after. On due date, W fails to pay despite demand from Z. May Z demand for the return of the
laptop?

A. Yes, because W is already in legal delay or default:

B. No, because Z is no longer the owner of the laptop.
C. Yes, because W refused to pay and Z being the owner of the laptop has the right to get
hold of it:

9. R bound himself to deliver to S, on or before July 1, 2021, a Mercedes Benz with plate no.
FEU 123 which he (R) had just brought home from Germany. He also promised to give S a 32-
inch 3D Sony Bravia Tv set.
Unfortunately, before the due date, the Mercedes Benz and the tv set which R had intended to
deliver to S were destroyed by an accidental fire.
Is the obligation of R extinguished?

A. Yes, because it was a fortuitous event and R has no fault; -

B. Yes, with respect to the obligation to give a Mercedes Benz but not extinguished
with respect to the delivery of car.
C. No, he is liable to pay damages because of breach of the obligation.

10. X is applying for life insurance coverage. A medical examination is scheduled to conduct
some tests, including chest x-ray. X knows that he has an active tuberculosis and will surely fail
the medical exam. x substituted w. his brother, who is a healthy person in his place in the x-ray
examination. The company granted his (X's) application for insurance.
There is-

A. Causal fraud or dolo causante.

B. Negligence.
C. Incidental fraud or dolo incidente

11. Z bound herself to sell the expensive diamond necklace of W on commission basis. Z was
given one month to sell and return it if not sold.
One night, Z attended a party and wore the diamond necklace. On her way home, she took a
taxi and was held up by three armed men who took away the necklace. Is the obligation of Z
extinguished?

A. Yes, because there was a fortuitous event:

B. No, because z was in delay or default.
C. No, because there was fault or negligence on the part of Z:

12. E borrowed P1,000 from F payable on April 30, 2021. E did not pay on due date. E is guilty
of-

A. Fraud
B. Delay/default:
C. Ordinary delay

13. On November 7, 2021, N obliged himself to deliver a specific white race horse to M on
December 12, 2021. On December 12, N failed to deliver the horse. On December 30, M
demanded the delivery of the horse to him, but N failed to comply with his obligation. When is N
considered in delay or default?

A. December 12
B. November 7, the day of the perfection of the contract
C. December 30

14. J buys a ferocious tiger. It is placed in a well-built cage. One day a very strong typhoon
strikes the area and the big flood with strong currents causes the cage to break or give way.
The tiger escapes and causes damage to another. Is J liable?

A. Yes, because of crime.

B. Yes, because of quasi-delicts. – kasi against the law ang pagbili ng tiger
C. No. because there is a fortuitous event.

15. A sold to B his cellphone for P2,000 to be delivered on December 1, 2021 and to be paid on
December 7, 2021. A delivered the phone on December 1 but B did not pay on December 7. B
is already in delay or default without need of demand.
  True
 False

16. A presumption that can be destroyed or disproved by showing evidence or proof to the
contrary.

A. Conclusive
B. Rebuttable

17. The deliberate evasion of the normal fulfillment of the obligation

A. Negligence
B. Causal fraud/dolo causante
C. Incidental fraud/dolo incidente

18. Lack of foresight, lack of planning, lack of due care even lack of skill refer to

A. Fraud
B. Diligence
C. Negligence

19. The waiver of an action for this kind of fraud is valid because it is considered as an act of
generosity and magnanimity of the party who is the victim of fraud. This refers to

A. Future fraud
B. Past fraud

20. X sold to Y on March 1, 2021, a female cow named Becky to be delivered on March 15,
2021. However, on March 10, 2021, X sold and delivered the same cow to W. Y has a better
right over Becky.

A. True- mas naunang magbayad si Y

B. Falses

21. K went to an appliance store to buy a 10 cubic feet white Westinghouse refrigerator model
W1921. The sales person told K that they have only five units left of said refrigerator. K
inspected each unit and told the salesperson that he was buying the one in the middle. They
agreed that delivery will be made the next day. On that evening, the appliance store was
completely destroyed by an accidental fire. The obligation is extinguished due to fortuitous
event.
 A. True
B. False

22. X sold to Y 100 cavans of rice stored in his bodega in Sampaloc, Manila. Y promised to pay
three days after and the key to the warehouse was handed to Y by X. Before Y could get the
cavans of rice, the bodega was gutted by an accidental fire. Who shall bear (suffer) the loss?

A. Y
B. X
C. Neither X nor Y

23. A and B are adjacent farmland owners. They entered into a contract wherein B agreed not
to put any structure that will impede the free flow of freshwater to A's farmland. Afterwards, A
discovered that b built a fence that impedes the flow of water to his farm. He made a demand
upon B to remove the fence but B did not oblige. What is the effect?

A. A can recover damages and have the fence dismantled at B's expense
B. A can recover damages because B is in delay/default which is a breach of the obligation
C. A may sue B to compel performance of the obligation with damages

24. When is a debtor whose obligation is to give, required to a deliver a thing must neither
superior nor inferior?

A. When the thing to be delivered is indeterminate whose quality is not stated

B. When the thing to be delivered is determinate or specific
C. When the thing to be delivered is indeterminate or generic

25. A and B entered into a contract for the construction of the latter's house.
A's personal qualifications are taken into account. What is the effect if A refuse to perform the
obligation without valid reason?

A. B may hire another person at A's expense with damages

B. B may compel specific performance with damages
C. B may file an action for damages for breach of the obligation

26. A and B entered into a contract on September 1, 2022 wherein A will deliver to b his mango
orchard on September 15, 2022. Before September 15, B has no right whatsoever over the
mango fruits.

 True
 False
27. Execution of public document or instrument by the contracting parties as a mode of delivery
refers to

A. Prompt delivery
B. Constructive delivery
C. Actual delivery

28. Which kind of obligation is delay or default not applicable?

A. Obligation to give
B. Obligation not to do
C. Obligation to do

29. A went to a thrift shop to buy an office table. A saw three office tables and told the seller that
he was buying the largest one. They agreed that the table will be delivered to A's residence the
next day. On that evening, the shop was totally destroyed by an accidental fire. The obligation is
extinguished.

 True
 False

30. X obliged himself to give Y his Mercedes Benz car on August 7, 2022. x did not deliver the
car on said date. On August 8, 2022, the car was destroyed in an accidental fire. The obligation
is not extinguished because of failure of X to perform his obligation on time.

 True
 False
Quiz 3 20/30 lang huhu

1. Perla is indebted to Maya and John in the amount of P10,000. Perla must pay P5,000 to
Maya and P5,000 to John.

O True
O False

2. X agrees to lease his one and only farmland and Y agrees to lease it for only P60,000
for one year if X's son wins in the Christmas lotto draw. If the condition happens, then X
must deliver the land together with the fruits and Y must pay the rentals with interest.

O True
O False

3. A, B and C solidarily owe X P3 million. X remitted the whole obligation due to A's
persistent plea. A, therefore, can ask for reimbursement from B and C.

O True
O False

4. " I will pay N P5,000 (Signed) M." This is a pure obligation.

O True
O False

5. A, B and C are jointly and severally indebted to X in the sum of P100,000. C is insolvent.
A and B shall answer for the share of C.

O True
O False

6. K will deliver to L 10 sacks of green tea or 10 sacks of dried lemon grass or 1 kilo of
dried marijuana leaves. There is partial nullity of the obligation.

O True
O False

7. F binds himself to repair the car of G or to repair G's truck or to paint G's motorcycle.
Before F can choose, G sells his motorcycle. G has to pay damages to F.

O True
O False
 8. Albert will give Ben this car or this motorcycle or this truck. Nothing is said in the contract
as to who was given the right of choice. Ben selects the car. Albert is bound by the choice
made.

True
False

9. A. B. C. D and E individually and collectively owe X P10,000. Before the due date, X remitted
the share of A in the debt. On due date, B paid the balance of P8,000 to X. When B asked for
reimbursement from his co-debtors. E could not pay because of insolvency. Who shall answer
for the share of E?

18 分
© B. C and D only since A's share has been remitted already by X.
O A C and D only
O A. B. C and D

10. W and X owe in solidum Z P1,000. W paid P800 which Z accepted without any objection.
How much can W recover from X?

• Р200
O P800
• Р300
• P1,000

11. M owes solidary debtors F, E and U P300,000. M refused to pay. Hence, E filed a suit
against M to enforce the obligation. M must pay to E only.

O True
O False

12. A will deliver to X, Y and Z a specific motorcycle. On due date X made a demand upon A.
The latter (A) refused to deliver to X only and insisted that Y and Z must also receive the
motorcycle.

O True
O False

13. If the resolutory condition is not fulfilled, the juridical relation is consolidated.

O True
O False

14. In suspensive condition, rights are not yet acquired, but there is a hope or expectancy that
they will soon be acquired.
  True
 False

15. A owes B P3,000.00 payable whenever he can pay or when his means will permit him to do
so is an obligation with a suspensive condition.

O True
O False

16. A will sell his house to C for only P50,000 if C will not convert it into a prostitution house is a
valid obligation.

O True
O False

17. "I will give you P50,000 if I return home from abroad" is a valid obligation.

O True
O False

18. "I will give you P50,000 on the 389th day of the year" is a valid obligation with a period.

O True
O False

19. X will deliver to Y one sack of white rice or one sack of brown rice or one sack of red rice. X
can compel Y to receive ⅛ sack of white rice and ½ sack of brown rice.

O True
O False

20. W will deliver to Z a puppy, or a kitten or a bird. Z made a demand upon him but W still
failed to choose. There is no delay or default.

O True
O False

21. X suffered big losses in his business. To infuse fresh capital in his business and hoping that
he will do good in order to pay his unpaid obligations, he borrowed P5 million pesos from W
payable after two years. A few weeks after receiving the loan, creditors begin hounding again X.
hence, X loses the right to make use of the period.

O True
O False
22. R left his residential house in Manila. Before he went to Marawi he asked his nephew W to
take care of the property and that he will pay him P30,000 if he was able to manage it well. R
got stranded when terrorists sieged Marawi City. Meanwhile, without the knowledge and/or
consent of R, W leased the property to a certain businessman who used the house as
warehouse. One evening, an accidental fire destroyed the property completely. Is W liable to R
for damages?

• No, because what he did was in the interest of his uncle R.

• No, because no person shall be liable for fortuitous event.
• Answer not given
• Yes, because he devoted the property to a different purpose.

23. A promises to pay B P100,000 if B constructs a big and elaborate gazebo in A's residence
within one year. On the third month after they entered into a contract, A caught B stealing from
his house and filed a case against the latter. B was convicted and was sent to jail. Hence, B was
not able to finish the construction. B is still entitled to receive his payment because of
constructive fulfilment of condition.

O True
O False

24. A penal clause in an obligation is a coercive means to obtain compliance from the debtor.

O True
O False

25. J will give K a cellphone or a laptop computer or a tablet (all specific things) within three
months from date of contract. They stipulated that K will have the right of choice. Before K can
choose the prestation, the laptop computer was lost due to J's fault. Which one is not correct?

O J is not liable for damages because there are remaining prestations to choose
from.
© J is liable for damages and K may demand for the price of laptop.
D J is liable for damages and K may choose among those subsisting.

26. P will deliver to M 10 sacks of white rice stored in a specific warehouse in Sampaloc, Manila
or 15 sacks of black corn stored in a certain warehouse in Sta. Cruz, Manila as a substitute.
Before P performs the obligation, he deliberately burned the 15 sacks of black corn.

O The obligation is extinguished

• P is not liable to pay damages
© P must deliver the 10 sacks of white rice and pay damages because of bad faith or
malice

27. A will give B a specific sewing machine with P10,000 as penalty for non-performance. A fails
to perform. B can demand for performance of the obligation with payment of P10,000 as
penalty.

O True
O False

28. Solidary obligation is not presumed.

O True
 O False

29. X will deliver to Y 50 sacks of red beans on October 15, 2022.

• The obligation is divisible

• Answer not given
• The obligation is indivisible

30. S will deliver to V a specific used car valued at P150,000 on September 1, 2022 and to pay
the penalty of P10,000 for everyday of delay from date of maturity. S failed to deliver the car and
the total amount of penalty he has to pay is P300,000. What is the effect?

• S must pay the penalty as agreed

• Answer not given
• S may ask the court to temper or reduce the penalty
Quiz 4 15/15 FINALLY

1. A owes B P5,000 guaranteed by X payable on October 30, 2022. If C, a third person

offers to pay A's obligation, B is obliged to accept the payment.

O True
O False

2. X, 18 years old, borrows P2,000 from Y, 16 years old. On due date, X pays Y the
amount of P2,000. The payment is valid if Y kept the money or in so far as the payment
is beneficial to him.

O True
O False

3. A owes B P10,000. On due date, B goes to A's residence to collect the payment and A is
ready to pay the full amount. However, they agreed that instead of cash B will accept A's
wristwatch worth more or lessP10,000 as full payment. The obligation is extinguished by
Dacion en Pago or Dation in Payment.

O True
O False

4. In payment by cession, the debtor transfers the ownership of his properties to the
creditors in payment of his debts.

O True
O False

5. A owes B the following: P1,000 due and demandable and P500 not yet due. A has the
right to choose to which debt he wants to apply the payment. He can apply the payment
to the P500 debt.

O True (the debtor has the first choice - application of payments)

O False

6. Checks, promissory notes and other mercantile/commercial documents can be used to

pay debts. However, they are not considered legal tender.

O True
O False
 7. If a creditor refuses to accept payment without valid reason and despite repeated
demands from the debtor, the obligation is deemed extinguished.

O True
O False

8. A buys B's car for P100,000. A paid by way of a check which B accepted. The obligation
is deemed paid and therefore, extinguished.

O True
O False

9. D gives P10,000 to C, a minor, in payment of a debt. C loses P2,000 of the money in

gambling; spends P2,000 in toys and snacks; gives P3,000 to his playmates and kept
the rest of the money in his piggy bank. In this case the payment is valid only to the
extent of P8,000.00

O True
O False

10. X and Y entered into a contract of sale. Y paid by check which X accepted. Seven
months after the date of issue, X presented the check for encashment and found out that
the bank had closed due to insolvency. Y's obligation is deemed paid and therefore,
extinguished.

O True
O False

11. X owes Y P10,000. Without the knowledge and consent of X, Z and Y agreed that the
obligation of X is extinguished and Z will be the new debtor of Y who is obliged to pay
the amount of P10,000. This novation (substituting the person of the debtor) is called
Expromision.

O True
O False

12. A, debtor, proposes to B, creditor, that M will be the new debtor who will pay the
obligation. B accepted M as the new debtor and agreed to extinguish A's obligation. If on
the due date, M cannot pay due to insolvency, B can still hold A liable because he was
the one who proposes the substitution of debtor.

O True
O False
 13. X borrowed P20,000 from Y. A negotiable promissory note was executed by X payable
one year after the date of issue. Y paid the promissory note to Z; Z paid the note to A
who also paid the note to X. The obligation of X is extinguished by confusion or merger
of rights.

O True
O False

14. A is obliged to deliver 10 sacks of white rice to B. The latter is also obliged to deliver 10
sacks of brown rice to A. Both obligations are due and demandable. The obligations of A
and B are extinguished by compensation.

O True
O False

15. A owes B P5,000 guaranteed by X. B also owes A P5,000. Both debts are due and
demandable. A did not pay due to insolvency. When B demands payment from X, the
latter refused to pay on the ground of compensation of obligation. X is correct.

O True
O False
Quiz 5 23/30

1. Most contracts are perfected by mere consent.

 True
 False

2. Deposit, pledge and commodatum are examples of real contracts.

 True
 False

3. Damage or lesion is immaterial in voidable contracts.

 True
 False

4. X reluctantly and against her good judgment sold her cell phone at a lower price. The
contract is voidable.

 True
 False

5. A entered into a contract of partnership with B thinking that B was C, B and C being twin
brothers. A may have the contract annulled for mistake as to identity.

 True
 False

6. X, 13 years old, without the consent of his parents, sold his cell phone fo P5,000 to B, 21
years old. Upon receiving the money, X was held up by an armed man. If the sale is
annulled, X is not liable to return the price but B is obliged to return the phone.

 True
 False

7. A contract entered into by a drunkard is valid unless it was made in a state of

drunkenness.
  True
 False

8. The perfection or birth of a contract does not necessarily result to a perfectly valid
contract.

 True
 False

9. F, 16 years old, asked permission from his parents to sell his old laptop computer. F,
sold the computer for P10,000 when the current selling price of such item is
P12,000,.00. Upon learning of the sale, F’s parents were furious and demand for the
return of the computer. The parents are correct because the contract is defective.

 True
 False

10. While heavily drunk, X binds himself to give his Bulova wristwatch to Y, who at that time
was in his lucid interval. The contract is valid.

 True
 False

11. V, 16 years old, sold his parcel of land for P300,000. When his parents learned about it
they got angry but were pacified upon knowing that V sold it for a good price. V and his
parents went to Hongkong and spent some of the money. There is ratification.

 True
 False

12. E asked D if he can borrow the latter’s car this weekend. D agreed. The contract is not
perfected until the delivery of the car to R.

 True
 False

13. X enters into a contract with Z. Upon learning that Z is a minor, X file for annulment of
the contract. X has no right to file said action.

 True
 False
14. X, 16 years old, Y, insane, and Z, an illiterate deaf-mute went to a department store and
bought some clothes, had a snack in a restaurant and took a taxi on their way home. All
the contracts they entered into are valid.

 True
 False

15. Conception stage of a contract is when there is already a meeting of minds between the
parties as to the object and consideration.

 True
 False

16. X sells to Y a specific tv set to be delivered on October 1, 2021. The contract is not
perfected until the delivery of the tv set.

 True
 False

17. Y was given five (5) days by Z to decide whether or not to accept Z's offer. Two days
after, Z changed his mind and withdrew the offer. Z is liable for damages.

 True
 False

18. W, 17 years old, enters into a contract with X, also 17 years old, without the consent of
their respective parents or guardian. The contract is voidable or annullable.

 True
 False

19. G, 18 years old, enters into a contract with H, 19 years old, who later on became insane.
The contract is voidable.

 True
 False

20. A offers to sell his cell phone for P3,000.00 to B. B agrees to buy it for P2,000.00. the
contract is not perfected.
  True
 False

21. E, during his lucid interval, enters into a contract with D, 16 years old. The contract is
valid.

 True
 False

22. Contracts entered into during a hypnotic spell or in a state of drunkenness are voidable.

 True
 False

23. X, 15 years old, sold his property worth P10,000.00 for P12,000.00 to B, 25 years old.
The contract is valid because X did not suffer lesion or damage.

 True
 False

24. K, a 20 year old deaf-mute, enters into a contract with L, 18 years old. The contract is
valid.

 True
 False

25. Contracts must be in writing and signed by the parties.

 True
 False

26. A, 15 years old, enters into a contract with B, 18 years old on June 1, 2020. The parents
of A ratified the contract on June 15, 2020. The contract is considered valid since June
15, 2020.

 True
 False
27. A and B, both minors, entered into a contract. The parents of A ratified the contract while
B's parents did not. The contract is converted into a voidable contract.

 True
 False

28. X bought a skin whitening product she saw on television because it was claimed to be
"the best in the market today." The product did not actually deliver the result which X
expected. There is vitiation of consent due to fraud.

 True
 False

29. A, a demented person, sold to B, a camera for P5,000.00. Of said amount, P3,000 was
spent by A in the purchase of food and other personal necessities. The other P2,000
was lost by A without his fault. Having been restored to his normal self, A filed an action
for annulment and the court granted the same. B must return the camera and A must
return the P5,000.00.

 True
 False

30. While A was in a state of drunkenness, he sold his car to B for P100,000,00. Later on, A
filed an action against B to annul the contract. The court annulled the contract but A
could not return the amount paid by B. B cannot be compelled to return the car to A.

 True
 False
Quiz 6 19/20

1. R wants to buy the rice field of J but the latter refuses. So R together with some
companions tied J to a tree, beat him up until he was compelled to sign a contract of
sale of the rice field in favour of R.

 Force or violence
 Undue influence
 Threat or intimidation

2. R and his companions, who are notorious gangsters, went to the house of J and told J
that unless he signs the contract of sale, R and his companions were going to get J's
beautiful daughter. J was compelled to sign the contract.
 Threat or Intimidation
 Force or violence
 Undue influence

3. A promised to give B a diamond ring if B should pass the Bar examination to be given on
October 2013. It turned out that B was only a third year law student in June 2013

 Undue influence
 Error or mistake
 Fraud

4. W, a pastor, promises forgiveness of sins and salvation to a dying patient on condition

that he signs a deed of donation of his (patient's) land to the Church and the latter
believing the pastor signs the deed of donation.

 Error or mistake
 Fraud
 Undue influence

5. X, a minor, entered into a contract with W wherein the former sold a piece of land to W
for P100,000. X used the P20,000 in buying his school books as well as clothes for
school use. The balance of P80,000 was invested by him in a certain business which
failed. Upon reaching the age of majority, filed for the annulment of the contract of sale
and the same was granted. As to X, what is the effect of the annulment?

 X must restore to W the P100,000 with legal interest;

 X must restore to W the P20,000 with legal interest;
 W must restore to X the land together with the value of the fruits received by him;
6. On September 15, 2020, G, 13 years old, without the consent of his guardian sold his
computer set to H, 18 years old. The guardian did not ratify neither did he file for the
annulment of contract. What is the effect?

 The contract can be annulled at the instance of B when he turns 18 years

old
 The contract is deemed valid after four years
 The contract is not subject to ratification nor to annulment

7. W died leaving five creditors to whom W owed P25,000. W left an estate worth P20,000.

 The heirs are liable proportionately

 The estate will answer for the debts of W. Hence, the heirs inherit nothing
but they are not liable for the balance of P5,000
 The obligation of W is extinguished and his heirs are not liable
 The heirs of W are liable to pay P25,000 because the obligation is transmissible

8. A sells a watch to B with the misrepresentation that the watch is of perfect quality and
that it is a Techno Marine watch. Now, B sells the watch to C, stating to the latter that the
watch is Techno Marine. B honestly thinks that the watch he is selling to C is really of
Techno Marine brand. It turns out that the watch is not really Techno Marine. It is just
marked as such.

 The contract is voidable because of undue influence

 The contract is voidable because of fraud
 The contract is voidable because of error or mistake

9. A and B entered into a contract of sale involving a parcel of land. They executed a
private document. When B tried to register the title of the land in his name, he was told
that a public document is required. What is the status of the contract?

 Valid and enforceable; B may compel A to execute the necessary public

document
 Void because the law requires that the sale of immovable property must be
in a public instrument
 Voidable because of error or mistake

10. A characteristic of contract which states that the contracting parties may agree upon
anything provided it is not contrary to law, morals, good customs, public order and public
policy.

 Relativity of contract
 Mutuality of contract
 Consensuality of contract
 Independence of contract

11. When a debtor dies without paying his indebtedness, his heir shall not be liable beyond
the value of the property he received from the decedent.

 Independence of contract
 Relativity of contract
 Consensuality of contract
 Mutuality of contract
12. Today, A and B entered into a contract of sale. The two of them are bound to fulfill not
only what has been expressly stipulated but also to all the consequences which,
according to their nature, may be in keeping with good faith, usage and law.

 Consensuality of contract
 Relativity of contract
 Mutuality of contract
 Independence of contract

13. The contracts must bind both contracting parties; its validity or compliance cannot be left
to the will of one of them.

 Mutuality of contract
 Relativity of contract
 Consensuality of contract
 Independence of contract

14. Contracts which are not perfected until the delivery of the object of the obligation'

 Principal contract
 Real contract
 Consensual contract
 Nominate contract

15. The following except one are valid object/subject matter of contracts -

 Construction of a house
 Rivers
 Credit
 Dog

16. C is the only child of H and W. Being the only heir of the couple, C may enter into a
contract involving any property he will inherit from his parents.

 True
 False

17. Every contract is presumed to have a valid cause.

 True
 False

18. A bought a second hand from B for P300,000 to be given to his daughter on her 20th.
The motive of the contract is -

 Price of P300,000
 Answer not given
 Gifting the car to her daughter

19. X and Y entered into a contract of sale involving a specific car for P500,000. X
delivered the car but Y did not pay. There is -

 False consideration
 Absence or want of consideration
  Failure of consideration

20. As a requirement in business law subject. A and B executed a contract of sale wherein
A sold to B a cellphone for P20,000. Since they do not intend to be bound by the contract,
A did not deliver and B did not pay anything. In this case, as to consideration, there is -

 Failure of consideration
 Absence or want of consideration
 False consideration