Obligations

1. This obligation is never presumed - to exist it must be provided for in the Civil Code or in
some other special law.
a. Obligation ex lege
b. Obligation ex contractu
c. Obligation ex quasi contractu
d. obligation ex delicto
e. obligation ex quasi delicto

2. This damage is awarded when some pecuniary loss has been suffered but its amount
cannot, from the nature of the case be proved with certainty:
a. Moral damages
b. Temperate damages
c. Nominal damages
d. Actual damages

3. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors
a. Accion reinvindicatoria
b. Accion subrogatoria
c. Accion pauliana
d. Accion quanti-minoris

4. On July 1, 2015 A signs a promissory note and binds himself to pay X P100,000 plus 15% per
annum interest on June 30, 2017:
a. Before June 30, 2017 X can demand payment.
b. If on June 30, 2017 A is paying X. X cannot refuse the payment.
c. Because the period is for the benefit of the debtor, A can compel creditor X to accept
payment any date before June 30, 2017.
d. Because the period is for the benefit of the debtor and creditor, X can refuse any
tendered payment before June 30, 2017.

5. An obligation where only one prestation has been agreed upon is called:
a. Simple obligation
b. Alternative obligation
c. Conjoint obligation
d. Facultative obligation

6. In an alternative obligation, the debtor losses the right of choice when:

a. When among the prestations whereby he is alternatively bound, only one is practicable.
b. When some of the prestations in alternative obligation is/are impossible, unlawful or
which could not have been the object of the obligation.
c. When the debtor already communicated his choice to the creditor

a. A and B c. B and C
b. A and C d. A, B and C

7. Which of the following denotes joint liability

a. Solidaria
b. In solidum
c. Juntos o separademente
d. Mancomunadamente
8. S sometime in 2017 sold to B a house and lot where the former committed fraud. The deed
of sale which was in a public document was registered with the Register of Deeds in 2018. In
2019, the fraud was discovered by the heirs of B. Under the Law, the action to annul a
contract based on fraud must be filed within four (4) years from:
a. Year 2017 the date of the contract
b. Year 2018 the date of registration with the Register of Deeds.
c. Year 2019 the date the fraud was discovered.
d. The action to annul a contract based on fraud is not subject to prescription.

9. A owes B P100,000. With consent of both, C pays B P50,000. Now B and C are the creditors
of A to the amount of P50,000 each. Suppose A has only P50,000. Which is correct?
a. B and C should divide the P50,000 equally
b. A may choose whom to pay
c. B should be preferred
d. C should be preferred

10. Which of the following is not covered by the statute of fraud?

I Oral contracts for a piece of work to be performed after fifteen (15) months from the
date of perfection of the contract.
II Oral sale of personal computer worth P50,000
III Oral sale of real property worth P20,000
IV Sale of Real property in private writing worth P100,000.
a. I, III and IV c. I and IV
b. I II, and IV d. IV only

11. Crisostomo donated a parcel of land to Anthony worth P50,000 in a public instrument on
December 24, 2018. Anthony accepted the same on the same day in a separate private
instrument. When Anthony now seeks to register the land in the Registry of Property, the
latter refused the registration because the acceptance of the donated property was not in a
public instrument. In this case:
a. Anthony can compel the Registry of Property to register the land under his name
because the donation is valid.
b. The Registry of property committed a grave abuse of discretion in refusing the
registration of the donated property in question.
c. Anthony cannot compel the Registry of Property to register the land under his name
because the donation is void.
d. The donation is valid but the registration may be refused on the ground that the
acceptance was not in a public instrument.

12. Which of the following is not a contract of adhesion?

a. Insurance contracts
b. Bills of lading
c. Contract of sale of lots on installment plan
d. Contract of partner
13. Statement I - There may be a sale of a generic thing
Statement II – The consideration in the contract of sale need not be in money.
a. First statement is true; second statement is false.
b. First statement is false; second statement is true.
c. Both statements are true.
d. Both statements are false.

14. Which obligation is not valid?

a. “I promise to give you P100,000 on December 25,2017”

b. “I promise to give you P100,000 if my mood dictates”.
c. “I promise to give you P100,000 if your patient dies”.
d. “I promise to give you P100,000 if you pass the May 2013 CPA Board Examination.

15. Which of the following obligations is not subject to a period?

a. Payable soonest
b. Payable “little by little”
c. Payable whenever “I like it”
d. Payable “when means permits me to”

16. A and B signed a promissory note to borrow P6,000 from X, Y and Z, payable in 6 months’
time. B gave in pledge a P10,000 diamond ring as security for the borrowed. How much can
Y collect from B?

a. P1,000
b. P6,000
c. P2,000
d. P3,000

17. D obliged himself to paint the house of C or to paint the picture of C in his house (SALA) in
an standing position, using 10 by 10 canvass. Later, because of financial reverses, C sold his
house to X. Which of the following statements is correct.
a. The obligation of D is extinguished because he cannot make a choice
b. D may just paint the picture of C
c. D may cancel the contract and ask for damages
d. Contract is voidable

18. A is obliged to give B his only car on September 1, 2018. On the said date, A did not deliver.
On September 2, 2018, an earthquake completely destroyed the car. Is A still liable?
a. No. Considering that no demand to deliver was made by B and the specific thing was
lost, due to fortuitous event, the obligation is extinguished.
b. No. The obligation is extinguished, even if the debtor is already in default because the
debtor can plead impossibility of performance.
c. Yes. A is already in legal delay, thus the obligation to deliver the lost specific thing is
converted into monetary claim for damages.
d. Yes. The creditor can instead demand for a substitute of equivalent value from the
debtor.

19. A owes B P100,000 due on December 12, 2017. A mortgaged his house to B as guaranty for
the debt. Shortly, however, the mortgaged house was completely destroyed by typhoon
“Ekang”. Thereafter, B demanded payment from A on October 28, 2017. Is B’s demand
valid?
a. No. The obligation is one with a definite period, thus the creditor cannot demand
fulfillment of the obligation as such would be prejudicial to the rights of the debtor.
b. No. The obligation is extinguished because the object of the obligation is lost through a
fortuitous event.
 c. Yes. The debt becomes due at once because the guaranty was lost even through a
fortuitous event, unless the debtor can mortgage another property that is equally
satisfactory.
d. Yes. The debt becomes due at once because from the tenor of the obligation, the period
established is for the benefit of the creditor solely thereby giving the creditor the right
to demand performance even before the date stipulated.

20. A-1 and A-2 are solidary debtors of B-1, B-2 and B-3, joint creditors in the amount of
P90,000.How much can B-3 collect from A-2?
a. B-3 could collect P30,000 from A-2.
b. B-3 could collect P90,000 from A-2 and give P30,000, each to B-1 and B-2
c. B-3 could collect P45,000 from A-2 and give P13,000 each to B-1 and B-2
d. B-3 could collect P15,000 from A-2 and P13,000 from A-1

21. Obligation may be modified by:

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

22. A, B, C and D, solidary debtors, are obliged to give E, F, G, H and I, joint creditors P50,000.00
a. E may collect from C P20,000.00
b. E may collect from C P5,000.00
c. E may collect from C P10,000.00
d. E may collect from C P1,000.00

23. C obliged himself to pay B P50,000 within 1 month plus a penalty of P1,000 if he fails to pay
within the due date. B can demand C to pay:
a. The principal amount of P50,000 only
b. The principal amount of P50,000 plus P1,000 penalty and legal interest if under
default
c. The principal amount of P50,000 plus P1,000
d. Answer not given

24. A, B, C and D are solidary debtors of solidary creditors E, F, G and H in the amount of
P100,000.
a. G may collect from A P25,000
b. G may collected P100,000
c. G may collect P50,000
d. None of the above

25. The following obligations are considered divisible, except:

a. Obligation which has for its object the accomplishment work by metrical units
b. Obligation to give determinate things
c. Obligation which has for its object the execution of certain number of days of work
d. Obligation which by its nature is susceptible of partial performance

26. The following statements concerning payment by cession are true, except:
a. Payment by cession extinguishes the obligations only to the extent covered by the
proceeds of the sale of debtor’s properties
b. The creditor becomes the owners of the properties that were ceded to them by the
debtor
c. The debtor must be insolvent
d. Cession affects all the properties of the debtor except those exempt from execution
27. The money or currency which the debtor may compel the creditor to accept in payment of a
debt, whether public or private is known as:
a. Negotiable instrument
b. Legal tender
c. Negotiable document of title
d. Mercantile document

28. The transmission of ownership of a thing by the debtor to the creditor as an accepted
equivalent of performance is known as:
a. Payment of cession
b. Dation in payment
c. Application of payment
d. Consignation

29. B is indebted to C for P50,000 on or before December 25, 2018. G who is not a party to the
contract paid C the amount of P50,000 on November 1, 2018 without the consent and
against the will of B. At the time of payment, the interest rate is 10% p.a. What is the
remedy of G?
a. G can ask for refund from C because the payment is against the will of B
b. G cannot ask for reimbursement from C because it is against the will of B
c. G can ask for reimbursement from B in the amount of P50,000
d. G can ask for reimbursement from B in the amount of P50,000 plus interest from
November 2, 2018 to December 25, 2018
30. It refers to the offer made by the debtor to pay his obligation to his creditor.
a. Consignation
b. Tender of payment
c. Application of payment
d. Dation in payment
Contracts

1. The following types of mistakes may result to annulment of a contract, except:

a. Mistake which should refer to the substance of the thing which is the object of the
contract
b. Mistake which refers to those conditions which have principally moved one or both
parties to enter into a contract
c. Simple mistake of account
d. Mistake as to identities or qualifications of the parties

2. A, without authority, sold the property of B in favor of C. The contract is considered:

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

3. The following are the requisites of violence to vitiate a consent, except:

a. There must be physical force
b. The physical force must be irresistible
c. It refers to moral force or compulsion
d. The force must be the determining cause in giving the consent to the contract

4. R and Q entered into a contract of sale for the delivery of 100 bottles of high grade
wine. However, R instead delivered 100 bottles of low grade wine. What is the remedy
of Q?
a. To ask for annulment of contract because there is dolo incidente.
b. To ask for damages because there is dolo causante.
c. To ask for damages because there is dolo incidente/incidental fraud
d. To ask for annulment of contract because there is dolo causante.

5. C and B agreed on a contract of pledge. However, they entered into a contract of

mortgage in the honest belief that they are the same. The instrument may be reformed:
a. No, the instrument cannot be reformed because it is inexistent
b. No, because the parties are bound by the contract
c. Yes, because there is no meeting of the minds
d. Yes, it does not express the true agreement of the parties

6. What is the remedy of the parties in case of relatively simulated contract?

a. Ask for annulment of contract.
b. Ask for declaration of nullity of contract.
c. Ask for reformation of instrument.
d. Ask for rescission of contract.

7. What is the prescription for the action or defense for the declaration of the inexistence
of a contract?
a. No prescription
b. 10 years
c. 4 years
d. 6 years
8. Which of the following instruments is not subject to reformation?
a. Simple donations inter vivos
b. When the agreement is void
c. Wills
d. All of the above

9. If mistake, fraud, inequitable conduct or accident has prevented a meeting of minds of

the parties, what is the proper remedy?
a. Annulment
b. Reformation
c. Rescission
d. Indemnification for damage

10. The following are the requisites for rescission or accion pauliana may prosper, except:
a. The action must be brought within 4 year
b. The contract must be rescissible
c. The party is left with other means to obtain reparation for damages done
d. The person demanding rescission must be able to return whatever he may be
obliged to restore if granted

11. Which of the following is not presumed to be legal subrogation?

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

12. A make an offer to B on February 14, 2017. B made known his acceptance on February
18, 2017 and received by A on February 21, 2017. A became insane on February 19,
2017.
a. The contract is void from the very beginning
b. There is meeting of the minds, the contracted is perfected
c. The contract is voidable because one party is insane
d. The contract is not binding

13. A and B entered into a contract of sale of piece of land, not knowing that the said
property has already been the object of another sale under different terms and
conditions, by their duly representatives. What is the status of the second contract?
a. Rescissible
b. Voidable
c. Unenforceable
d. Null and void

14. Before A died, her heirs already entered into an agreement for the settlement of the
estate of their mother. What is the status of the contract?
a. Void
b. Valid
c. Unenforceable
d. Rescissible
15. The following contracts may be ratified, except:
a. Sale of land or interest therein orally entered into
b. Sale of land through an agent where oral authority is given
c. Sale of land by a person who has been given no authority
d. Both parties are capable of giving consent

16. A sold his parcel of land valued at P2,000,000 to B at the price of P1,000,000. He thus
suffered lesion due to inadequacy of price. The contract is:
a. Voidable
b. Rescissible
c. Unenforceable
d. Valid, not defective

17. I. If the words of the contract are clear and leave no doubt regarding the intention of
the parties, the interpretation of the contract is proper
II. In gratuitous contracts, doubts shall be resolved in favour of the greatest reciprocity
of interest.
a. The first statement is correct, the second is false
b. The first statement is false, the second is correct
c. Both statements are false
d. Both statements are correct

18. When A was still alive, his son, B sold his property in the expectance that he would
receive it from his father upon his death. Is the contract defective?
a. It is a voidable sale if he fails to receive the inheritance
b. It is valid because the seller is an heir to the property
c. It is void since future inheritance cannot be sold
d. It is valid because future things can be the object of sale

19. A and B entered into a partnership agreement to be formed 4 years from today orally.
They will contribute a piece of land, a building and P50,000. What is the status of the
agreement?
a. Null and void
b. Unenforceable
c. Voidable
d. Valid

20. A, agent of B, sold the land of B to C orally. The authority of A is not in writing and C has
already paid the whole purchase price to A. What is the status of the contract?
a. Voidable on the part of C
b. Unenforceable
c. Valid and binding because already executed
d. Void because the authority is not in writing

21. A sold to B a house located at No. 17 Kamagong Street, Makati City. In the deed of sale,
it was written as No. 11 Kamagong Street, Makati City. What will be the remedy of the
parties?
a. Reformation because there is no meeting of the minds
b. Reformation of instrument because of the mutual error
c. Declaration of annulment of the voidable contract due to mutual mistake
 d. Declaration of nullity due to uncertainty of the object of the contract

22. What is the prescriptive period for action based on quasi contract?
a. 10 years
b. 6 years
c. 8 years
d. 4 years
23. What is the prescriptive period for action based on written contract?
a. 10 years
b. 6 years
c. 4 years
d. 8 years

24. When the nullity of contract proceeds from the illegality of the cause or object of the
contract and the acts constitute criminal offense, which of the following is incorrect:
a. The instrument of the crime shall be forfeited in favor of the innocent party
b. When both parties are in pari delicto, both will be prosecuted
c. When both parties are in pari delicto, they shall have no action against each other
d. If one party is guilty, he will be prosecuted

25. If one of the parties believed that the he received a certain amount as a loan, which the
other delivered as a real deposit, what is the status of the contract?
a. Voidable contract of loan on the part of the first party
b. Void because of want of consent
c. Voidable contract of real deposit on the part of the second party
d. Valid contracts of loan and deposit on both party

26. Through trick and fraudulent machinations by B, A entered into a contact with B. What
is the remedy of A?
a. Annulment of contract because there is dolo incidente
b. Annulment of contract because there is dolo causante
c. Seek damages because there is dolo causante
d. Seek damages because there is dolo incidente

27. Which one must be in writing to be enforceable?

a. Lease of condominium for 1 year
b. Lease of car for 18 months
c. Both a and b
d. None of the above
28. B, a lawyer who is single, raped A. The father of A threatened to sue him for disbarment
if he would not marry her daughter, A.
a. The marriage may be annulled in the basis of threat
b. The marriage may be annulled in the basis of force
c. The marriage is void
d. The marriage valid

29. A was forced by B to sign a contact of sale. C, the creditor of A wants to annul the
contact. Is his action valid?
a. Yes, because the contract is voidable
b. No, because a third person cannot assail a void contract
c. Yes, because it is considered a rescissible contract
d. No, because a third person cannot assail a voidable contract

30. A, in fraud of creditor sold his land to B. The latter seeks the registration of the sale. C, a
creditor seeks to prevent the registration because it is rescissible contract. Can the land
be registered?
a. Yes, because although rescissible, it is valid and binding
b. Yes, because although voidable, it is valid and binding
c. No, because the sale is voidable
d. No, because it is rescissible and without force and effect

31. A, in fraud of creditor sold his land to B (in good faith). B later sold the property to C
who is in bad faith. May the creditor rescind the sale?
a. Yes, because C is in bad faith
b. No, because B is in good faith
c. No, because the sale is voidable
d. Yes, because the contract is rescissible

32. If lesion is caused to either of the contracting parties, the contract may be:
a. Annulled
b. Rescinded
c. Ratified
d. None of the above
33. The following are the elements of voidable contracts, except:
a. Valid unless annulled
b. Existence of damage or injury
c. It can be ratified
d. The capacitated person cannot allege the incapacity of the other

34. The following statements are correct, except:

a. Incidental fraud only obliges the person employing it to pay for damages
b. In order that fraud may make a contract voidable, it should be serious and should
not be employed by both contracting parties
c. Misrepresentation made in good faith is not fraudulent but may constitute error
d. A relative simulation, when it does not prejudice a third person binds the parties to
their real agreement

35. A borrowed P10,000 from b with interest at the rate of 6% annually. B now wants to
increase the interest rate at 8% without the consent of D. What is the principle
prohibited by this act?
a. Relatively of contract
b. Autonomy of contract
c. Consensuality of contract
d. Mutuality of contract

36. The following are the features of void contract, except:

a. It cannot be ratified
b. The action for declaration of nullity is imprescriptible
c. The defense or illegality of a void contract is not available to third persons whose
interests are not directly affected
d. A contract which is the direct result of a previous illegal contract may be validly
novated

37. The following are the requisites for the validity of the contract, except:
a. Consent
b. Delivery
c. Object
d. Cause
38. If there is concurrence of offer and acceptance, there is the existence of:
a. Conception
b. Consummation
c. Consideration
d. Consent

39. The following are the requisites of “stipulation pour autrui”, except
a. The contracting parties must have clearly conferred a favor upon a third person
b. The third person must have communicated his acceptance to the obligor after its
revocation by the obligee or the original parties
c. The stipulation should be a part not the whole of the contract
d. The favourable stipulation should not be conditioned by any kind of obligation
whatever

40. The following statements regarding consent are correct, except:

a. Acceptance made by letter does not bind the offeror except the time it came to his
knowledge
b. Consent is the meeting of the offer and acceptance upon the thing and cause which
are to constitute as contract
c. A qualified acceptance is considered a counter offer
d. A qualified offer constitute a counter offer

41. The following statements are correct, except:

a. Mistake of law invalidates consent
b. There is no mistake if the party alleging it knew the doubt, contingency or risk
affecting the object of the contract
c. There is violence when in order to wrest consent, serious or irresistible force is
employed
d. Violence or intimidation shall annul the obligation, although it may have been
employed by a third person who did not take part in the contract

42. The following statements are true, except:

a. Future things may be the object of a contract
b. All rights which are not intransmissible may also be the object of the contract
c. Cause is another term for consideration
d. The particular motives of the parties in entering into a contract are the same as that
of the cause of the contract
43. A entered into a contract of mortgage with T. T, through negligence, typed the word
“deed of sale” instead of “deed of mortgage”. What will be the remedy?
a. Annulment
b. Novation
c. Parties seek court intervention for interpretation
d. Reformation

44. Which of the following constitutes an offer?

a. Business advertisement of things for sale
b. Before acceptance is conveyed, either of the parties dies, becomes insane or
insolvent or civilly interdicted
c. Advertisement of bidders
d. An offer made through an agent

45. Which of the following contracts is not void ab initio?

a. Those whose object is outside the commerce of men
b. Those which contemplate impossible service
c. Those undertaken in fraud of creditors
d. Those whose object did not exist at the time of the transaction

46. Contract entered into in a state of drunkenness is:

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

47. Generally, contracts bind only contracting parties, their assigns and heirs. Third parties
may be bound in the following instances:
a. In case of stipulation pour autrui
b. In contract creating real rights
c. In contracts intended to defraud creditors
d. All of the above
e. None of the above
48. A, the brother of C, a minor, sold her sister’s land in the name of the latter and by virtue
of which the latter was able to finish elementary. The contract is considered:
a. Void
b. Rescissible
c. Voidable
d. Unenforceable