Quiznetik

Philippines Civil Law Society | Set 2

1. Which of the following is not included in the attributes of juridical capacity?

A. Juridical Personality is inherent in every natural person, and therefore it is not acquired.

B. Juridical capacity is lost only through death

C. Juridical capacity can be limited or restricted

D. Juridical capacity cannot exist without capacity to act

Correct : D. Juridical capacity cannot exist without capacity to act

2. The following constitute the different circumstances or cases of fraud which will serve as ground for the annulment of a marriage, except?

A. Non-disclosure of the previous conviction by final judgment of the other party of a crime involving moral turpitude

B. Concealment of drug addiction of a sexually-transmissible disease, regardless of its nature, existing at the time of the marriage

C. Concealment of drug addiction, habitual alcoholism, homosexuality or lesbianism existing at the time of marriage

D. Concealment by the wife or the husband of the fact of previous sexual relations prior to the marriage

Correct : D. Concealment by the wife or the husband of the fact of previous sexual relations prior to the marriage

3. Which of the following is not a requisite for a valid donation propter nuptias?

A. The donation must be made before the celebration of the marriage

B. The donation shall be automatically revoked in case of non-celebration of the marriage

C. The donation must be made in consideration of the marriage

D. The donation must be made in favour of one or both of the future spouses

Correct : B. The donation shall be automatically revoked in case of non-celebration of the marriage

4. Bruce was pronounced by his physician to be suffering from an incurable disease and that he is going to die at anytime. Bruce was engaged to Margarita. In view of the pronouncement of Bruce’s doctor, the two got married without a marriage license. Six (6) months thereafter, Bruce died. The validity of their marriage was attacked on the ground that the marriage was not a marriage in articulo mortis. What is the status of the marriage between Bruce and Margarita.

A. Voidable

B. Valid

C. Valid but subjects the party responsible to civil, criminal and administrative liability

D. Unenforceable

Correct : B. Valid

5. Which of the following does not characterized legal separation?

A. The marriage is not defective

B. The grounds arise only after the marriage

C. The spouses are still married to each other and cannot, therefore remarry

D. There are ten (10) grounds for legal separation

Correct : D. There are ten (10) grounds for legal separation

6. The Civil Code of the Philippines took effect on:

A. August 30, 1951

B. June 30, 1950

C. August 30, 1950

D. June 30, 1949

Correct : C. August 30, 1950

7. Charlie gave his diamond-encrusted watch worth Php 25,000.00 to his friend Danny as a birthday gift. Danny readily accepted the gift with profuse gratitude. One month later, they had a serious quarrel; hence, Charlie demanded the return of the watch from Danny. Danny refused to return the watch. What is the nature of this donation?

A. Valid, because there was intention to donate and delivery by the donor Charlie.

B. Valid, because there was acceptance and receipt of the donated personal property by the donee Danny.

C. Void, because the value of the thing donated exceeded Php 5,000.00 and the donation and acceptance were not in writing.

D. Void, because the value of the thing donated exceeded Php 5,000.000 and the donation and acceptance were not in a public instrument.

Correct : C. Void, because the value of the thing donated exceeded Php 5,000.00 and the donation and acceptance were not in writing.

8. In a residential subdivision in San Pedro, Laguna, Marimar constructed and maintained a shoe factory which emits pollution and very loud noise 24 hours a day. How do you classify this nuisance?

A. Nuisance per se, because it is always a nuisance, regardless of its location and surroundings.

B. Nuisance per accidents, because it is only a nuisance based on its location and circumstances.

C. Nuisance per se, because it affects the entire subdivision

D. Nuisance per accidents, because it affects and annoys the entire residential subdivision.

Correct : B. Nuisance per accidents, because it is only a nuisance based on its location and circumstances.

9. Amelia and Arsenio are married. Amelia went to the U.S. to work as a nurse in 2005. She left her two (2) children, Benjie and Cherry, 4 years old and 2 years old, respectively, with her parents, Danilo and Elenita. Later, because his parents-in-law, do not want to give his children to him, Arsenio, through trickery, was able to get his children from their maternal grandparents. Danilo and Elenita are claiming that they have a better right to have custody over Benjie and Cherry since they are financially capable of supporting the needs of the children. Can the grandparents claim back the children?

A. Yes, because the mother Amelia has transferred her parental authority over the children in favor of the grandparents.

B. Yes, because the grandparents are more financially capable of providing for the needs of the children.

C. No, because parental authority should be vested on the present parent, Arsenio.

D. No, because the children should be given back to their mother considering that being both less that 7 years of age, their mother must have custody over the children.

Correct : C. No, because parental authority should be vested on the present parent, Arsenio.

10. Occupation is:

A. A derivative mode of acquiring ownership

B. An original mode of acquiring ownership

C. Not a mode of acquiring ownership

D. None of the above

Correct : C. Not a mode of acquiring ownership

11. Clara thinking of her morality, drafted a will and asked Roberta, Hannah, Luisa and Benjamin to be witnesses during the day of the signing of her will, Clara fell down the stairs and broke both her arms. Coming from the hospitals, Clara insisted on signing her will by thumb mark and said that she can sign her full name later. While the will was being signed, Roberta, experienced a stomach ache and kept going to the restroom for long period of time. Hannah while waiting for her turn to sign the will, was reading the 7th Harry Potter book on the couch, beside the table on which everyone was signing Benjamin, aside from witnessing the will. Also offered to notarize it. A week after, Clara was run over by a drunk driver while crossing the street in Greenbelt. May the will of Clara be admitted to probate? Give your reasons briefly.

A. Yes, because the testatrix signed the will in the presence of 4 credible witnesses and the credible witnesses signed the will in the presence of the testatrix and of one another.

B. Yes, because the testatrix signed the will in the presence of 3 credible witnesses and the 3 credible witnesses signed the will in the presence of the testatrix and of one another.

C. No, because there were only two credible witnesses who attested and signed the will in the presence of the testatrix and of the one another.

D. No, because the testatrix was not

Correct : C. No, because there were only two credible witnesses who attested and signed the will in the presence of the testatrix and of the one another.

12. In 1986, Jennifer and Brad were madly in love. In 1989, because a certain Picasso painting reminded brad of her, Jennifer acquired it and placed it in his bedroom. In 1990, Brad and Jennifer broke up. While Brad was mending his broken hearth, he met Angie and fell in love. Because the Picasso painting reminded Angie of him, Brad in his will bequeathed the painting to Angie. Brad died 1995. Saddened by Brad’s death, Jennifer asked for the Picasso painting as a remembrance of him. Angie refused and claimed that Brad, in his will, bequeathed the painting to her is Angie correct? Why or why not?

A. Yes, because the painting was owned by Brad

B. Yes, because the painting was given as legacy to her by Brad.

C. No. because the real owner of the painting was Jennifer.

D. Yes, because the painting was given to Brad as a gift by Jennifer.

Correct : C. No. because the real owner of the painting was Jennifer.

13. The following constitute fraud which is a ground for annulment of marriage

A. concealment of pregnancy of the wife by a man other than the husband

B. concealment of drug addiction, habitual alcoholism, homosexuality or lesbianism existing at the time of marriage

C. concealment of physical incapacity of consummating the marriage and such incapacity continues and appears to be incurable

D. letters a and b

Correct : D. letters a and b

14. A bus owned and operated by CRV Lines, Inc., and negligently driven by Mr. D, an employee rammed a Meralco lamp post. The incident injured Mr. P, a passenger, Mr. PD, a pedestrian. Which is correct?

A. Mr. D cannot be sued under a culpa criminal theory of Mr. P.

B. Mr. P can sue CRV Lines under a quasi delict theory as employer of Mr. D.

C. Mr. PD can sue CRV Lines under a contractual theory.

D. CRV Lines can be sued by Mr. P only under a contractual theory.

Correct : B. Mr. P can sue CRV Lines under a quasi delict theory as employer of Mr. D.

15. Mr. Seller offered to sell to Mr. Buyer, a parcel of land for P5 million. Because the latter could not make up his mind, Mr. Seller gave him thirty (30) days within which to decide.

A. Seller may always withdraw the offer before 30 days.

B. Seller can withdraw the offer prior to acceptance by Mr. Buyer.

C. Seller cannot withdraw before the lapse of 30 days.

D. Answer is not given.

Correct : B. Seller can withdraw the offer prior to acceptance by Mr. Buyer.

16. Miss X, is a passenger in a jeepney driven by Mr. D and owned by Mr. O. The jeepney was rear-ended by another jeep owned by Mr. TP. Investigations disclosed that the fault was due to the driver of Mr. TP. Which is not correct?

A. Miss X may sue Mr. O under a breach of contract of carriage.

B. Miss X may sue Mr. TP under a culpa aquiliana theory.

C. Miss X may sue the driver of Mr. TP under a culpa criminal theory.

D. Mr. O in a suit by Miss X for breach of contract may defend by alleging that the proximate cause of the accident was the jeepney of Mr. TP.

Correct : D. Mr. O in a suit by Miss X for breach of contract may defend by alleging that the proximate cause of the accident was the jeepney of Mr. TP.

17. Mr. Buyer bought a car from Mr. Seller, a dealer of cars under the following terms: (i) down payment of P500,000; (ii) entire balance is to be paid on December 24, 2004; (iii) a chattel mortgage is to be executed over the car bought or sold in favor of Mr. Seller. If on the due date for the balance, no payment is paid despite demand.

A. Mr. Seller may foreclose the mortgage on the car and recover any balance if there be a deficiency in the foreclosure sale.

B. Mr. Seller can foreclose the mortgage on the car but is precluded from recovering any balance.

C. Mr. Seller cannot foreclose the mortgage. His only remedy is to sue for the balance.

D. Mr. Seller can only cancel or rescind the sale.

Correct : B. Mr. Seller can foreclose the mortgage on the car but is precluded from recovering any balance.

18. Mr. Seller offered to sell a parcel of land Mr. Buyer orally for P5 million. Mr. Buyer accepted orally on November 5, 2004.

A. The sale is voidable.

B. The sale is valid and can be registered.

C. The sale is valid but unenforceable and cannot be register

Correct : C. The sale is valid but unenforceable and cannot be register

19. Mr. X. donated a cell phone worth P35,000 to Mr. B orally and delivered the same to Mr. B who accepted.

A. The donation is valid.

B. The donation is voidable and may be annulled.

C. The donation is void and Mr. X may get the cell phone back.

D. The donation is void but Mr. X cannot get the cell phone back.

Correct : C. The donation is void and Mr. X may get the cell phone back.

20. Which among the following must be in writing to be valid?

A. A sale of a land.

B. Every donation of personal or movable property.

C. A contract of partnership with a contribution of an immovable.

D. An authority by the principal to an agent to sell movables.

Correct : C. A contract of partnership with a contribution of an immovable.

21. The following are contracts that require the delivery of the subject matter before a perfected contract exists. Which is the exception?

A. An agreement to borrow/lend money.

B. An agreement to borrow/lend a car.

C. An agreement to deposit 1,000 bags of cement in a warehouse.

D. A sale of a car.

Correct : D. A sale of a car.

22. Mr. Seller offered a parcel of land to Mr. Buyer No. 1 under a contract to sell. Subsequently, Mr. Seller sold the same land to Mr. Buyer No. 2 who paid the price. After a couple of days, Mr. Buyer No. 1 paid the price. Which is correct?

A. The one with a better right is Buyer No. 2

B. Mr. Seller has done a double sale.

C. The one with the better right is the buyer who registers the sale first in good faith.

D. There is no double sale.

Correct : C. The one with the better right is the buyer who registers the sale first in good faith.

23. No. 1 – Fraud is always a ground for annulment of a contract. No. 2 – A simulated contract is voidable.

A. Both are false.

B. Both are true.

C. No. 1 is false; No. 2 is true.

D. No. 1 is true; No. 2 is false.

Correct : B. Both are true.

24. Which contract is rescissible?

A. A contract where both parties are of unsound mind.

B. A contract violating the statute of frauds.

C. A contract where the debtor sells his property to defraud the creditor where the buyer is in good faith.

D. None of the above.

Correct : B. A contract violating the statute of frauds.

25. When the debtor binds himself to pay when his means shall permit him to do so,

A. The obligation is deemed to be one with a period.

B. The obligation is a conditional obligation.

C. The obligation is vo

Correct : A. The obligation is deemed to be one with a period.

26. Which of the following contracts is not unenforceable?

A. An oral agreement to pay for the debt, default or miscarriage of another.

B. An oral sale of land.

C. An oral sale of movables with a value of P500.

D. An oral agreement to lend P50,000.

Correct : D. An oral agreement to lend P50,000.

27. No. 1 – A contract of sale is a mode of acquiring ownership. No. 2 – Every delivery transfers ownership.

A. Both are false.

B. Both are true.

C. No. 1 is true; No. 2 is false.

D. No. 1 is false; No. 2 is true.

Correct : A. Both are false.

28. Mr. X pledged his gold watch to Mr. Y as security for a loan. The loan was not paid.

A. Mr. Y may appropriate the ring as his own if there is a stipulation to that effect.

B. Mr. Y must sell the ring to someone else even in a private sale.

C. Mr. Y may recover the deficiency from Mr. X if after the auction sale, a deficiency exists.

D. Mr. Y cannot recover the deficiency after the auction sale.

Correct : D. Mr. Y cannot recover the deficiency after the auction sale.

29. The benefit of “exclusion” is available in a contract of

A. guarantee

B. suretyship

C. pledge

D. antichresis

Correct : A. guarantee

30. Mr. Seller and Mr. Buyer orally agreed on the following: (i) the land to be sold has an area of 10,000 sq. meters; (ii) price is P5 million; and (iii) Mr. Seller shall prepare the deed of sale. With fraudulent intent, Mr. Seller knowing the inadequacies of Mr. Buyer with respect to numbers wrote 1,000 sq. meters instead of 10,000 sq. meters. The sale is

A. void

B. voidable but the contract may be reformed

C. valid but the instrument may be reformed

D. valid but the contract may be reformed

Correct : C. valid but the instrument may be reformed

31. Mr. X promised to deliver a specified dog named “Auger” to Mr. Y on April 29, 2005.On the due date, no dog was delivered. Which is not correct?

A. If the dog died on April 30 without anyone’s fault, Mr. X shall be liable to Mr. Y by reason of delay.

B. Mr Y shall bear the loss because of res perit domino.

C. Mr. Y shall bear the loss because of genus nunquan perit.

D. Mr X shall bear the loss because of genus nunquan perit.

Correct : C. Mr. Y shall bear the loss because of genus nunquan perit.

32. No. 1 – The mortgagor in a real estate mortgage may sell the property mortgaged despite a prohibition to that EFFECT. No. 2 – If there is a balance after the foreclosure sale in a chattel mortgage arising he deficiency cannot be recovered.

A. Both are true.

B. Both are false.

C. No. 1 is false; No. 2 is true.

D. No. 1 is true; No. 2 is false.

Correct : D. No. 1 is true; No. 2 is false.

33. No. 1 – The laws governing deposits govern the relationship between a bank depositor and a bank. No. 2 – A creditor may be compelled to receive a certified check in payment of a loan.

A. Both are false.

B. Both are true.

C. No. 1 is true; No. 2 is false.

D. No. 1 is false; No. 2 is true.

Correct : A. Both are false.

34. .Mr. X lost heavily in a private gambling with Mr. Y. He still owes Mr. Y P250,000 representing losses. Which is not true?

A. The wife of Mr. X may file a suit to recover the losses if Mr. X refuses to file the suit.

B. Mr. Y has the obligation to return the losses of Mr. X.

C. Mr. X is estopped from recovering his losses.

D. Mr. Y cannot collect the unpaid losses of Mr. X.

Correct : C. Mr. X is estopped from recovering his losses.

35. Mr. X, without the authority of Mr. Y, owner of a car, sold the same car in the name of Mr. Y to Mr. Z. The contract between Mr. X and Mr. Z is

A. void because of the absence of consent from the owner, Mr. Y.

B. valid because all of the essential requisites of a contract are present.

C. unenforceable because Mr. X had no authority but he sold the car in the name of Mr. Y, the owner.

D. rescissible because the contract caused lesion to Mr. Z.

Correct : C. unenforceable because Mr. X had no authority but he sold the car in the name of Mr. Y, the owner.

36. Mr. MO executed a real estate mortgage over his land in favor of Mr. ME as security for a substantial loan he obtained from the latter. The mortgage agreement provided for a “first refusal clause”, i.e., Mr. MO, is obligated to offer the property first to Mr. ME in case he decides to sell the property mortgaged. Which of the following statements expresses a correct legal principle?

A. As long as the mortgage exists, Mr. MO has no right to sell his property to anyone.

B. Mr. MO may sell the property mortgaged with the consent of Mr. ME.

C. A violation of the “right of first refusal clause” will make the contract entered into by Mr. MO with anyone, void abs initio.

D. A violation of the ‘right of first refusal clause” will make the contract entered into by Mr. ME rescissible

Correct : D. A violation of the ‘right of first refusal clause” will make the contract entered into by Mr. ME rescissible

37. Which of the following contracts are void?

A. An oral sale of a parcel of land.

B. A sale of land by an agent in a public instrument where his authority from the principal is oral.

C. A donation of a wrist watch worth P4,500.

D. A relatively simulated contract.

Correct : B. A sale of land by an agent in a public instrument where his authority from the principal is oral.

38. Which of the following expresses a correct principle of law?

A. Failure to disclose facts when there is a duty to reveal them, does not constitute fraud.

B. Violence or intimidation does not render a contract annullable if employed not by a contracting party but by a third person.

C. A threat to enforce one’s claim through competent authority, if the claim is legal or just, does not vitiate consent.

D. Simulation of a contract always results in a void contract.

Correct : D. Simulation of a contract always results in a void contract.

39. .Mr. X orally offered to sell his two-hectare rice land to Mr. Y for P10 million. The offer was orally accepted. By agreement, the land was to be delivered (through execution of a notarized deed of sale) and the price was to be paid exactly one-month from their oral agreement.

A. If Mr. X refuses to deliver the land on the agreed date despite payment by Mr. Y, the latter may not successfully sue Mr. X because the contract is oral.

B. If Mr. X refuses to deliver the land, Mr. Y may successfully sue for fulfillment of the obligation even if he has not tendered payment of the purchase price.

C. The contract between the parties is rescissible.

D. The contract between the parties is subject to ratification by the parties.

Correct : D. The contract between the parties is subject to ratification by the parties.

40. Which of the contracts below are rescissible?

A. Those entered into by guardians whenever the wards whom they represent suffer lesion by more than one third of the value of the object subject matter thereof.

B. Those entered into by guardians in the above when the lesion suffered is one fourth of the value of the property.

C. Those undertaken in fraud of creditors even if the latter has other means to collect the debt.

D. Those where the contract is absolutely simulated.

Correct : A. Those entered into by guardians whenever the wards whom they represent suffer lesion by more than one third of the value of the object subject matter thereof.

41. Which of the following reflects a correct legal principle?

A. A, B, and C, are co-owners of a three-hectare orchard. If A decides to sell his share to B, C has a right of redemption.

B. A and B are adjoining owners of a rural land. Each land has an area of half a hectare. If B sells his land to D who does not own any rural land, C has a right of redemption.

C. If the right to repurchase is not exercised within the period agreed upon, a judicial order is necessary to consolidate ownership on the buyer.

D. A contract of sale is not a mode of acquiring ownership.

Correct : D. A contract of sale is not a mode of acquiring ownership.

42. Mr. S sold his land to Mr. B with a right to repurchase within ten years from the date of sale. Despite the lapse of the period of redemption, no such redemption was made.

A. Ownership of the land was consolidated on Mr. by virtue of the failure to redeem by Mr. S.

B. Ownership of the land will be consolidated only upon the registration of the sale with the registry of deeds.

C. Ownership of the land will be consolidated only upon a judicial order.

D. Ownership will be consolidated only with the consent of Mr. S.

Correct : C. Ownership of the land will be consolidated only upon a judicial order.

43. Mr. S sold a banana plantation to Mr. B for P3 million although its market value is P20 million. It was agreed that Mr. S shall remain in possession as lessee of the land and shall be responsible for the real estate taxes.

A. The contract gives rise to an action for rescission.

B. The contract gives rise to an action for annulment.

C. The contract is a sale.

D. The contract is presumed to be an equitable mortgage.

Correct : D. The contract is presumed to be an equitable mortgage.

44. A and B are capitalist partners, with C as an industrial partner. A and B contributed P15, 000.00 each to the capital of the partnership. A contractual liability of P40, 000.00 was incurred by the partnership in favor of X. If the capital assets have been exhausted to pay X, leaving a contractual liability of P10, 000.00, X can recover the amount from:

A. A and B only

B. A, B and C

C. A, B and C and C can recover for reimbursement from A and B

D. No reimbursement may be recovered by C.

Correct : A. A and B only

45. A, B and C are partners engaged in a retail business. Their contribution is P20, 000.00 each. D is admitted as a new partner with a contribution of P8, 000.00. At the time of his admission, the partnership has an outstanding obligation to E in the amount of P80, 000.00. In this case:

A. D is not liable to E for this obligation and his P8,000 contribution shall remain with the partnership

B. D is liable to E for this obligation so that after the assets of the partnership amounting to P68, 000.00 will be exhausted leaving a balance of P12, 000.00, only A, B and C shall be liable jointly or pro rata, out of their separate property.

C. D is liable to E for this obligation so that after the assets of the partnership will be exhausted, leaving a balance of P12,000.00, all the partners shall be liable jointly or pro rata, including D, out of their separate property.

D. D will be liable only if he knew of the liability of P80,000 at the time he joined the partnership.

Correct : B. D is liable to E for this obligation so that after the assets of the partnership amounting to P68, 000.00 will be exhausted leaving a balance of P12, 000.00, only A, B and C shall be liable jointly or pro rata, out of their separate property.

46. Mr. Ayco offered to sell his land to Mr. Cruz for P300,000. Mr. Cruz accepted the offer and paid Mr. Ayco the purchase price. Mr. Ayco delivered the owner’s duplicate of the Transfer Certificate of title of the land. Mr. Cruz wants to register the land in his name but the Register of Deeds asks Mr. Cruz for the Deed of Sale. What can Mr. Cruz do?

A. He may occupy and use the land as a buyer in good faith.

B. He cannot compel Mr. Ayco to return the payment because the contract is unenforceable.

C. He may compel Mr. Ayco to execute the Deed of Sale because the contract is val

Correct : C. He may compel Mr. Ayco to execute the Deed of Sale because the contract is val

47. Andrea wrote Bernardo a letter offering to sell a piece of land. Andrea gave Bernardo two months within which to pay the price of P500,000. After 50 days Andrea informed Bernardo that she is increasing the price of the land to P700, 000. Can Bernardo compel Andrea to accept the P500,000 first offered and execute the deed of sale?

A. No, because Bernardo did not signify his acceptance of the offer of P500,000

B. Yes, because the period of 2 months has not yet expired.

C. Yes, because Andrea is already estopped by her signed letter.

D. Yes, because there was actual meeting of minds of the parties.

Correct : A. No, because Bernardo did not signify his acceptance of the offer of P500,000

48. Antonio sold a piece of land to Renato binding himself not to sell the same to another person. On the following day, Antonio sold the land to Carlos who immediately took possession in good faith. In the case at bar, the proper remedy of Renato is to:

A. Institute an action for the annulment of the sale to Carlos.

B. Institute an action for the recovery of the land.

C. Institute an action for damages against Antonio.

D. Institute an action for a declaration of nullity of the sale to Carlos.

Correct : C. Institute an action for damages against Antonio.

49. Mr. Reyes has a tax liability of P100, 000. In order to evade the payment of the tax liability, he executed a deed of sale of his only parcel of land valued for P100, 000.00 in favor of his brother, Pablo. The deed of sale stated a purchase price of P20, 000.00 but the BIR has evidence that said price had never been paid.

A. The BIR may not levy upon the land because the sale is valid.

B. The BIR, without having the sale annulled may levy upon the land of (Mr.Reyes pursuant to the Tax Code.

C. The BIR should first have the sale annulled before it may levy upon the land pursuant.

D. The BIR should first have the sale rescinded for lesion to the government.

Correct : B. The BIR, without having the sale annulled may levy upon the land of (Mr.Reyes pursuant to the Tax Code.

50. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. Which of the following constitutes an offer?

A. an definite offer made through an agent

B. business advertisement of things for sale

C. advertisements for bidders

D. a declaration of an intent to sell.

Correct : A. an definite offer made through an agent

51. When goods are delivered to the buyer “on sale or return”, for a period of seven (7) days, ownership of the goods passes to the buyer,

A. Upon delivery of the goods.

B. Upon expiration of seven (7) days.

C. Upon acceptance by the buyer of the offer of the seller.

D. Upon perfection of the contract.

Correct : B. Upon expiration of seven (7) days.

52. Ben pledged his watch to V. Y. Domingo for P5,000. On the due date Ben failed to pay his loan and redeem the watch. The pawnshop sold the watch at public auction to the highest bidder at P4,000.

A. The pawnshop can recover the deficiency of P1, 000 from Ben.

B. The pawnshop cannot recover the P1, 000 unless there is a stipulation.

C. The pawnshop can recover the P1, 000 even without a stipulation.

D. The pawnshop cannot recover the P1, 000 even if there is a stipulation.

Correct : A. The pawnshop can recover the deficiency of P1, 000 from Ben.

53. Mr. X executed a chattel mortgage over his house and lot to Mr. Y. When the obligation became due, Mr. X did not pay despite demand.

A. Mr. Y has no right to foreclose the mortgage because the house and lot are not chattels.

B. Mr. Y has no right to foreclose the mortgage unless Mr. X consents to the foreclosure.

C. Mr. Y has no right to foreclose the mortgage because he can sue for collection.

D. Mr. Y may foreclose the mortgage because Mr. X is estopped from claiming the invalidity of the chattel mortgage over the real property, but foreclosure should be made under the procedure of a real estate mortgage.

Correct : D. Mr. Y may foreclose the mortgage because Mr. X is estopped from claiming the invalidity of the chattel mortgage over the real property, but foreclosure should be made under the procedure of a real estate mortgage.

54. Mr. D borrowed P500, 000 from Mr. C with Mr. G as guarantor. When the debt fell due, Mr. D did not pay despite demand.

A. Mr. C may collect from Mr. G because he guaranteed payment of the debt.

B. Mr. G may refuse to pay even if Mr. D is insolvent.

C. Mr. G may ask Mr. C to exhaust all the properties of the Mr. D first before collecting from Mr. G.

D. Mr. G may refuse to pay even if Mr. D has absconded.

Correct : C. Mr. G may ask Mr. C to exhaust all the properties of the Mr. D first before collecting from Mr. G.

55. Every contract of partnership having a capital of three thousand pesos or more, in money or property, shall appear in a public instrument, which must be recorded in the Office of the Securities and Exchange Commission. Failure to comply with this requirement;

A. renders the contract of partnership void.

B. renders the contract of partnership unenforceable.

C. affects the liability of the partnership to third persons and the partnership has no legal personality.

D. does not affect the liability of the partnership to third persons and the partnership still has a legal personality.

Correct : D. does not affect the liability of the partnership to third persons and the partnership still has a legal personality.

56. X is not a partner of A, B, and C. Without the consent or knowledge of C but with the implied consent of A and B, X made T believe that he is a partner of A, B, and C. Who shall be liable for the payment of a debt of P500, 000 in favor of T who extended credit on the basis of the misrepresentation?

A. X, A and B pro rata.

B. X, A and B solidarily.

C. X, A, B and C pro rata.

D. X, A, B and C solidarily.

Correct : A. X, A and B pro rata.

57. Seller wrote Buyer offering to sell his only house for a specified price. The letter was mailed on the same date it was written. Buyer offered to buy the same house for the same price and the letter containing the offer to buy was also mailed on the same date it was written. On the same date and time Seller and Buyer received the letters written to each other.

A. There is a perfected contract.

B. There is a perfected contract only when they have orally confirmed their having received the letters written to each other.

C. There is no contract because the offers were not certain.

D. There is no contract because there was no acceptance.

Correct : D. There is no contract because there was no acceptance.

58. Jose went to visit Pablo, a friend one Sunday morning where a card game was going on. Jose joined the game and lost P50,000. He became indebted to the winner for P10, 000 more. Which among the following statements is not correct?

A. The winner cannot maintain an action to collect the P10,000.

B. Jose may recover P50,000 from the winner with legal interest from the time he paid the amount lost.

C. Jose may recover P50,000 from the winner but without legal interest.

D. If Jose refuses to recover from the winner, the spouse of Jose may institute the action to recover.

Correct : C. Jose may recover P50,000 from the winner but without legal interest.

59. For payment to extinguish the obligation:

A. The thing or service in which the obligation consists must be completely delivered or rendered.

B. Payment must not have been justifiably refused by the creditor.

C. Payment must be in legal tender.

D. All of the above.

Correct : D. All of the above.

60. Which of the following is most likely incorrect?

A. Mr. D promised to deliver to Mr. C 100 bottles of Japanese red wine of a specified brand. Without the knowledge of Mr. D, production of the wine had been stopped. Despite earnest efforts, Mr. D could only deliver ninety (90) bottles. Mr. O’s obligation is deemed fulfilled.

B. In the immediately preceding letter (a), Mr. D could recover as though there had been a delivery of 100 bottles.

C. Mr. D promised to deliver 100 sacks of a certain type of rice. He delivered only 90 sacks but the obligee did not object to the incomplete delivery. The obligation may be deemed fully perform

Correct : B. In the immediately preceding letter (a), Mr. D could recover as though there had been a delivery of 100 bottles.

61. Debtor owes Creditor P500,000. The debt is secured by a chattel mortgage on Debtor’s car. On the due date of the obligation, Creditor is paid by Third Person who has no interest in the obligation either as guarantor or surety. There is likewise no stipulation as to Third Person’s right to pay.

A. If Third Person pays without the knowledge or against the will of Debtor, Third Person may recover P500, 000 from Debtor even if the debt had been condoned to the extent of ½.

B. If Third Person pays with the Debtor’s knowledge and consent, Third Person may recover P500, 000 from Debtor even if the debt had been condoned to the extent of ½. If Debtor fails to pay, Third Person may foreclose the mortgage on Debtor’s car.

C. Same as letter “b” except that Third Person may not foreclose the mortgage on Debtor’s car, unless Creditor consents.

D. Same as letter “b” except that Third Person may not foreclose the mortgage on Debtor’s car because the mortgage was exclusively constituted in Creditor’s favor.

Correct : B. If Third Person pays with the Debtor’s knowledge and consent, Third Person may recover P500, 000 from Debtor even if the debt had been condoned to the extent of ½. If Debtor fails to pay, Third Person may foreclose the mortgage on Debtor’s car.

62. Which among the situations below states a correct principle of law?

A. Third Person pays Debtor’s debt without intending to be reimbursed by Debtor. The payment will not extinguish the obligation even if accepted by Creditor if Debtor does not consent to the payment.

B. Third person pays Debtor’s debt without intending to be reimbursed by (c) Debtor. The payment will extinguish the obligation if Debtor does not consent to the payment.

C. Debtor is obliged to give Creditor a Rado watch. Since no Rado watch was available on the due date, Debtor decided to deliver a watch of a different brand more valuable than the one that is due. Creditor must accept the watch.

D. D owes C P20, 000. D pays B, brother of C. The payment is not valid even if it redounded to the benefit of C.

Correct : D. D owes C P20, 000. D pays B, brother of C. The payment is not valid even if it redounded to the benefit of C.

63. Debtor owes Creditor P20, 000. On the due date of the obligation, Debtor could not pay. Debtor instead offered his TV set worth P20,000 in payment of the obligation. Creditor agrees.

A. There is no payment because the debt may only be discharged by the delivery of legal tender.

B. There is payment pursuant to a facultative obligation because of a substitution.

C. There is dation in payment or dacion en pago.

D. There is payment by cession.

Correct : C. There is dation in payment or dacion en pago.

64. Mr. D owes Mr. Y P10, 000. On the due date, Mr. X offers a check in payment of the obligation.

A. The receipt of the check by Mr. Y extinguishes the obligation if the check is a certified one because it is as good as cash.

B. The receipt is not equivalent to automatic payment if the check is not a certified check.

C. Mr. Y has no reason to refuse the check if it’s fully funded as certified to by the bank.

D. Mr. Y cannot be compelled to accept the check.

Correct : D. Mr. Y cannot be compelled to accept the check.

65. Where the debtor has various debts of the same kind in favor of the same creditor and on the due date the debtor does not have sufficient funds to cover all the debts, the debtor may avail of

A. tender of payment and consignation.

B. application of payment.

C. dation in payment.

D. cession in payment.

Correct : B. application of payment.

66. When the characters of the creditor and debtor are merged in one and the same person, there is extinguishment of the obligation by,

A. confusion

B. compensation

C. novation

D. condonation or remission

Correct : A. confusion

67. When there is a change in the object or principal conditions, an obligation is extinguished by

A. confusion

B. compensation

C. novation

D. condonation or remission

Correct : A. confusion

68. It is that currency which the debtor can compel the creditor to accept in payment of all debts, public or private.

A. certified checks.

B. domestic money in any denomination.

C. legal treasury notes.

D. legal tender.

Correct : D. legal tender.

69. The extinguishment of an obligation by the passage of time is

A. fulfillment of a resolutory condition.

B. prescription.

C. expiration.

D. annulment.

Correct : B. prescription.

70. Mr. Debtor is domiciled in Quezon City while Mr. Creditor is domiciled in Manila. Payment is to be made in

A. Quezon City, domicile of Mr. Debtor.

B. Manila, domicile of Mr. Creditor.

C. Makati City if so stipulat

Correct : A. Quezon City, domicile of Mr. Debtor.

71. Mr. Debtor owes Mr. Creditor as follows: P10, 000 due February 5; P10, 000 due March 5 and P10, 000 due April 5, all during the current year. Mr. Debtor has only P10, 000 and cannot pay all his obligations. If Mr. Debtor decides to pay P10, 000, the amount shall apply:

A. To the debt chosen by Mr. Creditor.

B. To the debt chosen by Mr. Debtor.

C. To the debt due on February 5 being the oldest debt.

D. To the debt due on April 5 if it is an interesting obligation.

Correct : B. To the debt chosen by Mr. Debtor.

72. Mr. Debtor owes fifteen (15) persons substantial amounts of money. His financial situation indicates that his liabilities for exceed his assets. If Mr. Debtor cedes or assigns his properties to his creditors,

A. The creditors acquire ownership of the properties assigned or ceded.

B. The creditors shall sell the properties assigned and when sold, the debt of Mr. Debtor is deemed paid regardless of whether or not the net proceeds are equal to or less than the amount of the indebtedness.

C. The creditors shall sell the properties assigned and when sold, the debt of Mr. Debtor shall only be released to the extent of the net proceeds of the sale.

D. The cession or assignment shall extinguish the obligation whether or not the creditors sell the properties assigned.

Correct : C. The creditors shall sell the properties assigned and when sold, the debt of Mr. Debtor shall only be released to the extent of the net proceeds of the sale.

73. Mr. Debtor owes Mr. Creditor P100, 000. On the due date, Mr. Debtor delivers a cashier’s check for the full amount. Mr. Creditor refuses to accept the check.

A. Debtor may make a consignation by depositing the amount due with any bank and in the name of Mr. Creditor.

B. Mr. Debtor may make a consignation by depositing the amount due at the disposal of judicial authorities before whom the tender of payment shall be proved in a proper case.

C. Mr. Debtor has no legal basis for making a consignation.

D. The creditor may be considered in mora accipiendi.

Correct : C. Mr. Debtor has no legal basis for making a consignation.

74. As a general rule, consignation must be preceded by a valid tender of payment. Enumerated below however, are situations which allows a consignation without a prior tender of payment. Which is the exception?

A. When for any cause, the creditor refuses to give a receipt.

B. When the creditor is absent or unknown, or does not appear at the place of payment.

C. When two or more persons claim the same right to collect.

D. When the title to the obligation has been lost.

Correct : A. When for any cause, the creditor refuses to give a receipt.

75. Which among the following fails to state a correct legal principle?

A. The debtor in obligations to do shall be released when the prestation becomes legally or physically impossible without the fault of the obligor.

B. Whenever the thing is lost in the possession of the debtor, it shall be presumed that the loss was due to his fault, unless there is proof to the contrary.

C. An obligation which consists in the delivery of a determinate thing shall be extinguished in any event it should be lost or destroyed without the fault of the debtor.

D. Condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly.

Correct : C. An obligation which consists in the delivery of a determinate thing shall be extinguished in any event it should be lost or destroyed without the fault of the debtor.

76. Mr. Debtor executed a promissory note in favor of Mr. Creditor in the amount of P100, 000. The debt is secured by a pledge on a ring owned by Mr. Debtor. Which among the following is most likely correct?

A. If on the due date, Mr. Creditor delivers the note to Mr. Debtor without collecting the debt, there is an implied condonation if the note is a private instrument.

B. If the debt is condoned by Mr. Creditor, the pledge is not condoned.

C. If Mr. Creditor returns the thing pledged to Mr. Debtor, the pledge and the loan are deemed extinguish

Correct : A. If on the due date, Mr. Creditor delivers the note to Mr. Debtor without collecting the debt, there is an implied condonation if the note is a private instrument.

77. For compensation to be proper, the following must be complied with. Which is the exception?

A. Both debts consist in a sum of money or of the same kind.

B. Both debts are due.

C. Both debts be liquidated and demandable.

D. Both parties are insolvent.

Correct : D. Both parties are insolvent.

78. It is the substitution or change of an obligation by another, which extinguishes or modifies the first either changing its object or principal condition, or substituting another in place of the debtor, or subrogating a third in the right of the creditor.

A. accion subrogatoria

B. novation

C. accion pauliano

D. none of the above

Correct : B. novation

79. Which among the following is not an essential element of an obligation?

A. Active and passive subjects.

B. Form of the obligation

C. Prestation

D. Juridical tie

Correct : B. Form of the obligation

80. Mr. Oliveros, by virtue of a written agreement agreed to deliver to Mr. Santos a car on a specified date provided the latter pays the former P1 million.

A. The prestation is the car; Mr. Santos is the active subject; Mr. Oliveros is the passive subject and the juridical tie is the contract.

B. The active subject is Mr. Oliveros; the passive subject is Mr. Santos; the juridical tie is the law and the prestation is the giving of the car.

C. The active subject is Mr. Santos; the passive subject is Mr. Oliveros; the prestation is the delivery of the car and the juridical tie is law.

D. The passive subject is Mr. Oliveros; the active subject is Mr. Santos; the prestation is the delivery of the car and the juridical tie is the contract.

Correct : B. The active subject is Mr. Oliveros; the passive subject is Mr. Santos; the juridical tie is the law and the prestation is the giving of the car.

81. When a party causes damage to another due to his negligent act and such damage is caused in the course of the performance of a contractual obligation, the latter is liable to the former on the basis of

A. culpa criminal

B. culpa extra contractual

C. culpa contractual

D. culpa aquiliana

Correct : C. culpa contractual

82. No. 1 - the same act of negligence of the defendant that causes injury to another may give rise to a liability based on culpa aquiliana and culpa criminal and the injured party may recover twice from the same act or omission of the defendant. No. 2 - When the defendant causes damage to the plaintiff through the formers fault or negligence, there being no contractual relationship between them, the basis of the defendant’s liability is a quasi-contract.

A. Both statements are false.

B. Both statements are true.

C. Only No. 1 is true.

D. Only No. 2 is true.

Correct : D. Only No. 2 is true.

83. They are lawful, unilateral and voluntary acts that are based on the principle that no one shall be enriched or benefited at the expense of another.

A. Quasi-delicts

B. Quasi-contracts

C. Culpa contractual

D. None of the above

Correct : D. None of the above

84. The quasi-contract of negotiorum gestio requires the following. Which is the exception?

A. There must be an abandoned or neglected property or business.

B. Someone voluntary takes charge of that abandoned business or property.

C. The owner must consent to the management of his business or property by someone.

D. The owner has the obligation to reimburse the expenses of the person who takes charge of his business or property.

Correct : C. The owner must consent to the management of his business or property by someone.

85. Pedro receives a package via Federal Express. When he opened the package he realized that the same was delivered to him by mistake and that the real owner thereof is Pablo, his neighbor. The obligation of Pedro to give the package to Pablo arises from

A. law

B. contracts

C. moral obligations

D. solutio indebiti

Correct : D. solutio indebiti

86. Pedro offered to sell to Marita a purported diamond ring which actually was a stone of inferior quality. Believing it to be a genuine diamond ring, Marita bought and paid for the ring. If later on, Marita discovers the misrepresentation, Marita may:

A. sue for damages alone because of dolo causante.

B. sue for rescission.

C. for annulment because of dolo incidente.

D. for annulment because of dolo causante.

Correct : B. sue for rescission.

87. Pedro borrowed money from Jose, payable on November 26, 2005. On the due date of the obligation, Pedro failed to pay. On December 30, 2005, Pedro paid the debt.

A. Pedro is in default.

B. Pedro is not in default.

C. Pedro is liable for interest.

D. Pedro is liable for damages.

Correct : B. Pedro is not in default.

88. A debt has a maturity date of November 1, 2004. Payment was made on November 1, 2005 but demand was made on June 1, 2005. If the debtor is made liable for interest, the interest shall commence to run on

A. November 1, 2004.

B. June 1, 2005.

C. The date the obligation was incurr

Correct : B. June 1, 2005.

89. Pedro promised to give Jose an orchard planted with mango trees on November 30, 2005. Before November 30, 2005, what right does Jose have over the orchard?

A. Jose has no right.

B. Jose has a personal right.

C. Jose has a real right.

D. Jose has both a personal and a real right.

Correct : A. Jose has no right.

90. No. 1 - If a person obliged to do something fails to do it, the only remedy of the obligee is to demand for the payment of damages. No. 2 - If a person obliged to do something fails to do it, he may be compelled by court action to fulfill his obligation.

A. Both are true.

B. Only No. 1 is true.

C. Both are false.

D. Only No. 2 is true.

Correct : C. Both are false.

91. Mr. Robles sold his only car to Mr. Roxas for P600,000. There was no agreed date for delivery and payment. The obligation of Mr. Robles as seller is:

A. to deliver when Mr. Roxas is ready to pay.

B. to deliver the car immediately because there is already a perfected contract.

C. to have the contract rescinded because no date is fixed for performance.

D. to deliver the car immediately because his obligation is pure.

Correct : A. to deliver when Mr. Roxas is ready to pay.

92. In order that fraud may make a contract void able:

A. It may be incidental but both parties should not be in pari delicto.

B. It may be serious and the parties must be in pari delicio.

C. It may be incidental but should have been employed by both parties.

D. It should be serious and should have not have been employed by both contracting parties.

Correct : D. It should be serious and should have not have been employed by both contracting parties.

93. Gody obtained a loan from Eusebio in the amount of PhP10,000.00 payable on June 30, 2005 plus 10% interest. On January 2, 2005, Gody won PhP100, 000.00 in a bingo game and he offered to pay PhP10,000.00 to Eusebio. Eusebio refused to accept the payment offered by Gody. Which of the following statements is correct?

A. Eusebio can be compelled to accept the payment offered by Gody because the amount being offered is complete.

B. Eusebio can be compelled to accept the payment being offered if the interest will be reduced.

C. Gody cannot compel Eusebio to accept the amount offered by him because the period for payment has not yet arriv

Correct : C. Gody cannot compel Eusebio to accept the amount offered by him because the period for payment has not yet arriv

94. Which of the following statements is correct?

A. Negligence signifies the idea of delay in the fulfillment of an obligation.

B. Delay or default means the failure to perform the obligation on the date agreed upon by the parties.

C. Incidental fraud is one committed in the performance of an obligation.

D. Proper diligence of a good father of a family means extra-ordinary diligence.

Correct : C. Incidental fraud is one committed in the performance of an obligation.

95. Which of the period in the following cases is intended for the benefit of the debtor?

A. Payable on December 31, 2006

B. Payable before December 31, 2006

C. Payable on or before December 31, 2006

D. All of the above

Correct : B. Payable before December 31, 2006

96. While Mr. P was walking along a busy street, he slumped and suffered from symptoms of a heart attack, and lost consciousness. Mr. D, a heart specialist saw what happened and through his expertise saved the life of Mr. P. If sued for Mr. D’s services.

A. Mr. P must pay on the basis of an implied contractual relationship.

B. Mr. P must pay under a quasi-contract.

C. Mr. P has no obligation to pay because he did not ask for Mr. D’s services.

D. Mr. P has no obligation to pay because the services of Mr. D can be construed as a voluntary act and hence, a donation.

Correct : B. Mr. P must pay under a quasi-contract.

97. S and B entered into a sale of a four-hectare land for P1 million. S prepared the Deed of Sale and with fraudulent intent and taking advantage of B'’ failing eyesight changed the area of the land to reflect an area less than what had been agreed upon. The remedy of B upon discovery of the fraud is,

A. Annulment

B. Reformation of the contract

C. Rescission

D. Answer not given

Correct : D. Answer not given

98. Which of the following statements is incorrect?

A. The full payment of the price is sufficient to make the buyer the owner of the thing sold.

B. In a sale, the full payment of the price is a suspensive condition for the seller to deliver.

C. Delivery of the thing sold is necessary to transfer ownership.

D. Delivery in a real contract is required not for transfer of ownership but for the perfection of the contract.

Correct : A. The full payment of the price is sufficient to make the buyer the owner of the thing sold.

99. On June 5, 2000, Jose Dizon was supposed to deliver to Ruben Samia a specified red car. There was no delivery however, on said date. On June 15, 2000, the garage of the car collapsed because of an earthquake and the car was totally destroyed. Is Jose Dizon liable?

A. No, because he could plead impossibility of performance due to a fortuitous event even if he is in default.

B. Yes, because Jose Dizon is in legal delay.

C. No, because there was no demand and the car was lost through a fortuitous event.

D. Yes, because there is a perfected contract.

Correct : C. No, because there was no demand and the car was lost through a fortuitous event.

100. Seller wrote a letter to Buyer offering to sell a piece of land for P500,000. Seller gave Buyer two months to decide and pay the purchase price. Before the lapse of two months, Seller wrote Buyer that the price is now P700,000. Buyer insisted on an acceptance for P500,000. He wants to compel Seller to execute a deed of sale for the original offer of P500,000. May the Seller be compelled to honor the P500,000 offer?

A. No, because Buyer did not accept the original offer.

B. Yes, because two months have not yet elapsed.

C. Yes, because Seller is estoppel by his original letter.

D. Yes, because there was a meeting of the minds.

Correct : A. No, because Buyer did not accept the original offer.