Quiznetik

Philippines Civil Law Society | Set 6

1. If the buyer under the Maceda Law has paid less than two (2) years of installments, what is the grace period he is entitled to from the date the installments became due?

A. 20 days;

B. 60 days;

C. 30 days;

D. 40 days.

Correct : B. 60 days;

2. A & B entered into a contract of lease over A’s house and lot. Without the consent of A, B assigned the lease to C. Is the assignment valid?

A. The assignment is valid because B has the right of possession over the leased property and can transfer it to anyone.

B. The assignment is void because of lack of consent of A.

C. The assignment is void because the same partakes of the nature of subjective novation which needs the consent of A.

D. The assignment is valid since it is a property of B which can be disposed of.

Correct : C. The assignment is void because the same partakes of the nature of subjective novation which needs the consent of A.

3. A leased his house & lot to B who subleased it to C. B failed to pay the rentals. What does A have against C?

A. A can sue C for the rentals.

B. A can hold C liable for the rentals by suing him for ejectment.

C. A can hold C liable for the rentals, but the liability is merely subsidiary.

D. A can never make C liable for the rentals because of lack of privity between them.

Correct : C. A can hold C liable for the rentals, but the liability is merely subsidiary.

4. A contract of lease was entered into between A & B with a provision that it is for a period of 5 years renewable for another 5 years. The contract expired on June 30, 2010 but up to now, the lessee is still in possession of the premises. What does the implicit renewal of the contract mean?

A. That all the provisions of the contract relative germane to possession are renewed.

B. That the period originally agreed upon shall likewise be the period in the renewed contract.

C. That the right to purchase agreed upon in the original contract is impliedly renewe

Correct : A. That all the provisions of the contract relative germane to possession are renewed.

5. A is the owner of a parcel of land adjoining B’s lot. B, knowing that the lot did not belong to him constructed his house on the lot belonging to A. Which of the following is the not correct?

A. A can appropriate the house without paying any compensation.

B. A can eject B.

C. B is entitled to at least 50% of the value of the house in the interest of justice and inorder that no one shall enrich himself at the expense of another.

D. A can compel B to buy the land even if the value is considerably more than the value of the improvement.

Correct : C. B is entitled to at least 50% of the value of the house in the interest of justice and inorder that no one shall enrich himself at the expense of another.

6. A leased his house and lot to B with “option to renew.” How will the contract be renewed?

A. At the option of B;

B. At the option of A;

C. Automatically;

D. Upon agreement of A and B as it must be interpreted to be reciprocal in character where the renewal is subject to agreement of the parties.

Correct : D. Upon agreement of A and B as it must be interpreted to be reciprocal in character where the renewal is subject to agreement of the parties.

7. A partnership begins from:

A. The moment of the execution of the contract;

B. The moment of the notarization of the document of partnership;

C. The registration with the SEC;

D. The moment all contributions are paid.

Correct : A. The moment of the execution of the contract;

8. What does the sharing of gross returns in a business undertaking mean?

A. Conclusive evidence of partnership;

B. Prima facie evidence of partnership;

C. Does not establish a partnership whether or not the persons sharing them have a joint or common right in any property upon which the returns are derive

Correct : C. Does not establish a partnership whether or not the persons sharing them have a joint or common right in any property upon which the returns are derive

9. A, B and C formed a partnership with C contributing an immovable, but no inventory of such immovable was attached to the contract. Is the contract valid?

A. The contract is valid because a contract is valid in any form it may be entered into;

B. The contract is voidable;

C. The contract of partnership is void;

D. The contract is unenforceable.

Correct : C. The contract of partnership is void;

10. A, B and C are the partners. A conveyed to X his whole interest in the partnership. What is the effect of the conveyance?

A. It dissolved the partnership;

B. The assignee became a partner;

C. The assignee has the right to interfere in the management or administration of the partnership business;

D. Merely gave him the right to receive his shares in the profits (Art. 1813, NCC)

Correct : D. Merely gave him the right to receive his shares in the profits (Art. 1813, NCC)

11. When may a partner who was appointed as manager in the articles of partnership be removed?

A. May be removed at anytime;

B. May be removed with just or lawful cause by majority of the partners;

C. May be removed for just and lawful cause by a vote of partners representing controlling interest ;

D. May be removed by order of the court.

Correct : C. May be removed for just and lawful cause by a vote of partners representing controlling interest ;

12. If a partnership has a capital of more than P3,000.00 and it is not registered, is the contract valid?

A. Void;

B. Voidable;

C. It does not invalidate the same as among the partners so long as the contract has the essential requisites.

D. Unenforceable.

Correct : C. It does not invalidate the same as among the partners so long as the contract has the essential requisites.

13. In connection with the rule of mutual agency of the partners in a partnership which of the following is not correct?

A. Partnership is liable to every partner for amounts disbursed on behalf of the partnership, plus interest, from the time the expenses are made; (Art. 1796, NCC)

B. Unless otherwise agreed upon, all partners shall be considered agents and whatever any one of them may do alone binds the partnership; (Art. 1803(1); Art. 1818)

C. Anyone of the partners may make important alterations on the immovable property of the partnership; (Art. 1803, NCC)

D. Admission or representation made by a partner concerning partnership affairs is evidence against the partnership. (Art. 1820)

Correct : C. Anyone of the partners may make important alterations on the immovable property of the partnership; (Art. 1803, NCC)

14. P appointed A, his agent to manage his business in the United States of America. A died and his son, S, managed the same until P could appoint another agent to personally take over. The agency of S is one based on:

A. Ratification;

B. Necessity;

C. Estoppel;

D. By operation of law.

Correct : B. Necessity;

15. P appointed A, his agent for the purpose of selling the former’s car for P500,000.00. A sold the car in his name to B. After delivery, it was found out that the car has hidden defects which rendered the car unfit for the purpose of B. Can B file an action against P even if A acted in his own name?

A. No, because the legal principle than becomes applicable is caveat emptor.

B. Yes, because while the agent acted in his own name but the agency involves a thing belonging to the principal.

C. No, since in the law on agency, the Rule is that if the agent acted in his name, the principal is bound to the third person and the third person does not become bound to the principal.

D. No, because the contract is already perfected and executed.

Correct : B. Yes, because while the agent acted in his own name but the agency involves a thing belonging to the principal.

16. A special power to sell on credit includes the power to:

A. Mortgage

B. Sell in cash

C. Barter

D. To enter into a contract of pledge.

Correct : B. Sell in cash

17. In an agency to sell real property which of the following renders the authority and contract of sale valid?

A. General power of attorney, granting the agent authority to sell real property, not put into writing.

B. General power of authority put into writing without authority to sell.

C. A special power of attorney put into writing authorizing the agent to sell real property of the principal.

D. Special power of attorney couched in general terms without referring to specific acts of dominion.

Correct : C. A special power of attorney put into writing authorizing the agent to sell real property of the principal.

18. Under the law on agency, what is the nature of the act when an agent violates the terms of the agency and acts outside the scope of the authority vested in him?

A. Void;

B. Unenforceable;

C. Voidable;

D. Valid and binding upon the principal.

Correct : B. Unenforceable;

19. Donna, authorized her friend Joyce to sell his Prada bag worth P100,000 on installment basis. Joyce, however, sold the bag on cash in contravention of the authority given to her. Was the sale valid?

A. No, because the agent acted beyond the scope of his authority.

B. Yes, because the sale in cash redounds to the benefit of Donna. Hence, despite violation of the authority given, the sale is valid.

C. Yes, because Donna as principal is always bound by the act of his agent, Joyce.

D. No, because the agent violated the terms of the authority given to her.

Correct : B. Yes, because the sale in cash redounds to the benefit of Donna. Hence, despite violation of the authority given, the sale is valid.

20. A wrote his brother B authorizing the latter to sell a parcel of land belonging to him located in Cagayan Valley. On the strength of such letter-authority, B sold the land. Is the sale valid?

A. No, because the letter-authority must be in a public instrument.

B. No, because the letter-authority must be participated in a notary public.

C. Yes, because it is sufficient that the letter-authority be in writing.

D. No, sale in invalid.

Correct : C. Yes, because it is sufficient that the letter-authority be in writing.

21. A, B and C formed a limited partnership. They named their partnership AB&C. In 2008, the firm incurred an indebtedness of P5M. A suit was filed for the recovery of debt. Which of the following statements is correct?

A. No partnership was constituted because the word “limited” was omitted in the partnership name.

B. B and C as limited partners are liable only up to the extent of their contributions.

C. All are liable as general partners.

D. A, B and C are not liable because there was a defect in the formation of their partnership.

Correct : C. All are liable as general partners.

22. A constituted B as his agent to sell his property. B found C as the buyer who was willing to buy under the terms agreed upon but suddenly A changed his mind and decided not to sell the property. One week later, A and C, entered into a contract of sale over the property. Is B entitled to commission?

A. No, because when A decided not to sell, his agency was terminated;

B. No, because he was not the procuring cause;

C. Yes, because A acted in bad faith. (Infante v. Cunanan, 49 O.G. 3320; Art. 19, NCC)

D. Yes, because he did not give justice to B in the exercise of his right.

Correct : C. Yes, because A acted in bad faith. (Infante v. Cunanan, 49 O.G. 3320; Art. 19, NCC)

23. What is not a requirement for existence of negotiorum gestio?

A. A property or business is neglected or abandoned by the owner.

B. A person has been constituted manager of the property or business so abandoned.

C. The management of the owner’s business was assumed by another not an owner or manager so authorize

Correct : B. A person has been constituted manager of the property or business so abandoned.

24. A sold a parcel of land to B covered by TCT NO. 152 with C as a witness. When D wanted to buy a property, he executed a special power of attorney for E to buy a property for him. E entered into a contract of sale with A for the purchase of the same lot and registered it under the name of D. Who between B and D has a better right over the lot?

A. D has a better right because of prior registration;

B. B has a better right because he is the first buyer;

C. D has a better right because he is the buyer in good faith;

D. D has a better right because the knowledge by his agent of a prior sale is immaterial.

Correct : B. B has a better right because he is the first buyer;

25. When is the guarantor liable for the obligation of the debtor?

A. Once the obligation becomes due and demandable;

B. Only after judgment is obtained against the principal debtor and he is unable to pay; (Baylon v. CA, August 17, 1999)

C. The moment the judgment against the debtor becomes final and executory;

D. Once demand is made for both the debtor and guarantor to pay.

Correct : B. Only after judgment is obtained against the principal debtor and he is unable to pay; (Baylon v. CA, August 17, 1999)

26. The guarantor paid the obligation of the debtor when demand is made. Can he ask for reimbursement?

A. No, because he is a voluntary payor;

B. No, because judgment has yet to be obtained against the debtor;

C. No, because he has not been able to exercise the benefit of excussion;

D. Yes, because the benefit of excussion is a right granted to him which can be waived.

Correct : D. Yes, because the benefit of excussion is a right granted to him which can be waived.

27. The following statements are correct, except:

A. There can be a continuing guaranty;

B. There can be a continuing surety;

C. There can be a continuing chattel mortgage;

D. There can be a continuing real estate mortgage.

Correct : C. There can be a continuing chattel mortgage;

28. A obtained a loan from Metrobank. As security, he delivered and deposit certificate maturing on April 29, 2011. A failed to pay, hence, the bank encashed the deposit certificate. A contended that it is pactum commissorium. Is A correct?

A. Yes, because the encashment is an automatic appropriation of the security;

B. A is not correct because the bank had yet to perform an act to appropriate the money deposited;

C. A is not correct because the act done was a matter of compensation; (BPI v. CA, 232 SCRA 302; Art. 1980, NCC)

D. A is correct because there can be no compensation since the relationship between the bank and A is one of deposit.

Correct : C. A is not correct because the act done was a matter of compensation; (BPI v. CA, 232 SCRA 302; Art. 1980, NCC)

29. A entered into a contract whereby he obligated himself to pay B on or before September in the form of Australian currency. When the obligation became due and demandable, A delivered to B Australian currency. Is A correct?

A. B can refuse to accept the payment because the currency being offered is not legal tender in the Philippines.

B. A is correct in offering Australian currency because of the contract.

C. A is not correct because the stipulation to pay in Australian currency is void because it is contrary to law.

D. A is not correct because the stipulation to pay in the form of another currency is void because it is contrary to public policy. (RA 8183)

Correct : B. A is correct in offering Australian currency because of the contract.

30. A & B entered into a contract of loan in the amount of P1M with interest at 192% per annum. When the obligation became due and demandable B failed to pay despite demand, hence, A filed a complaint against B. On the interest rate, what is a valid contention of B?

A. B can ask the court to declare it void on the ground that it is contrary to the Usury Law.

B. B can ask the court to declare it void and be not liable at all.

C. B can ask the court to delacre it void on the ground that it is unconscionable, hence, contrary to morals and the court may fix the interest rate at its discretion.

D. A can contend that the interest rate is valid because of the principle of binding effect of contracts.

Correct : C. B can ask the court to delacre it void on the ground that it is unconscionable, hence, contrary to morals and the court may fix the interest rate at its discretion.

31. X and Y entered into a contract. X agreed to deposit P50,000 with Y’s account to make it appear that Y had sufficient capitalization in forming an incorporation. They agreed that Y should return the money plus 12% interest within 30 days. What is the nature of the contract?

A. Mutuum, because of the stipulation as to interest.

B. Mutuum, because Y acquired ownership upon depositing the amount in his account.

C. Commodatum, because Y never acquired ownership over the money as he was under obligation to return it and it was only for purposes of exhibiting that he had sufficient capital.

D. Commodatum, because the stipulation for the payment of interest did not convert it to mutuum.

Correct : C. Commodatum, because Y never acquired ownership over the money as he was under obligation to return it and it was only for purposes of exhibiting that he had sufficient capital.

32. Which of the following statements is not true about the dragnet clause?

A. It is one specifically phrased to subsume all debts of past or future origins.

B. It operates as a convenience and accommodation to the borrowers as it makes available additional funds without executing additional security documents.

C. It is also known as the “blanket mortgage clause”

D. It is different from a continuing mortgage clause.

Correct : D. It is different from a continuing mortgage clause.

33. What is a contract of precarium?

A. It is a contract by virtue of which a person called the guarantor, binds himself to the creditor to fulfill the obligation of the principal debtor in case the latter should fail to do so.

B. It is a contract by virtue of which a person binds himself solidarily with the principal debtor to fulfill the obligation.

C. It is an accessory, real and unilateral contract by virtue of which the debtor or a third person delivers to the creditor or to a third person movable property as security for the performance of the principal obligation.

D. It is a contract of commodatum where the bailor has the right to demand the return of the thing which is the object of the contract at will.

Correct : D. It is a contract of commodatum where the bailor has the right to demand the return of the thing which is the object of the contract at will.

34. A entered into a contract of loan with a bank. They stipulated that if there will be a law or BSP circular that will allow the increase in the interest rate, the bank will increase it. Is the stipulation valid?

A. Yes, because of the principle of liberty of contracts;

B. Yes, because of the principle of mutuality of contracts;

C. No, considering that there is no corresponding de-escalation clause;

D. Yes, because the increase is not unilateral.

Correct : C. No, considering that there is no corresponding de-escalation clause;

35. Which of the following is correct if the interest rate in a loan is void?

A. The contract is totally inexistent;

B. The creditor cannot recover interest at all;

C. The creditor can recover legal rate of interest;

D. The court shall rule as if no interest has been agreed upon and contrary to law.

Correct : C. The creditor can recover legal rate of interest;

36. A checked in at ABC Hotel Corporation with his valuables. While shopping nearby, she left the room for half a day but when she went back, all his valuables were gone as her room was ransacked with the use of force. She filed a complaint for damages. Is the hotel keeper liable?

A. The hotel keeper is liable as depositary.

B. The hotel keeper is not liable because under the contract, it is not liable in case of loss of things belonging to the guest for any reason.

C. The hotel keeper is not liable because of force majeure.

D. The hotel keeper is liable because it is its duty to protect the properties of its guests.

Correct : C. The hotel keeper is not liable because of force majeure.

37. A obtained P50,000.00 from B to be placed in A’s safety deposit box. What is the nature of the contract?

A. The contract is a loan.

B. It is a contract of lease.

C. It is a commodatum.

D. It is a deposit.

Correct : D. It is a deposit.

38. In case of contract of deposit, the depository has the following rights or obligations except:

A. To keep the thing safely.

B. To return the thing deposited.

C. To make use of the thing deposited with the permission of the depositor.

D. To deposit the thing deposited with a third person when there is an express stipulation allowing the same.

Correct : C. To make use of the thing deposited with the permission of the depositor.

39. What is the nature of the contract of rent of safety deposit boxes?

A. Mutuum

B. Commodatum

C. Deposit

D. Lease.

Correct : D. Lease.

40. When is the hotelkeeper shall be liable for the loss of the things belonging to the guests?

A. If the things were actually delivered or surrendered to the hotelkeeper.

B. If the guests did not sign any waiver of liability.

C. If the hotelkeeper was notified of the valuables and the guests took the necessary measure to the care and vigilance over the same.

D. If the loss was due to the act of a thief done with the use of irresistible force.

Correct : C. If the hotelkeeper was notified of the valuables and the guests took the necessary measure to the care and vigilance over the same.

41. A lent money to B in the amount of P3M and executed a mortgage over his house and lot to secure the payment of the obligation with a condition that if he fails to pay, A shall became the owner of the property. Is the stipulation valid?

A. Yes, because the contract is the law between the parties;

B. Yes, because of the doctrine of mutuality of contracts

C. No, because it is a case of pactum commissorium;

D. Yes, because of the liberty of contracts.

Correct : C. No, because it is a case of pactum commissorium;

42. In the question above, suppose B failed to pay and A foreclosed the mortgage. Is A entitled to the balance?

A. No, because the law on pledge is applicable to the law on mortgages.(Arts. 2041,2087,2115,NCC)

B. Yes, because there is no law that prohibits recovery of deficiency under the mortgage laws;

C. Yes, because while the law on pledge applies to the law on mortgage, the same is true if there is no inconsistency between the two (2) laws. ( Pameca Word Treatment Corp. v. CA)

D. No, because of the principle of solution indebt.

Correct : C. Yes, because while the law on pledge applies to the law on mortgage, the same is true if there is no inconsistency between the two (2) laws. ( Pameca Word Treatment Corp. v. CA)

43. A & B entered into a contract of pledge, where B delivered his car to A as security for the payment of an obligation in the amount of P2M. For failure of B to pay what is the remedy of A?

A. Appropriate the car as his own as provided for in the contract

B. Sell the car but must deliver to B the excess.

C. Sell the car but cannot recover any deficiency despite the agreement.

D. Sell the car and recover the deficiency because of the agreement in the contract of pledge.

Correct : C. Sell the car but cannot recover any deficiency despite the agreement.

44. To secure the payment of his obligation, A pledged to his surety C, his car who sold the car after paying the obligation of A. The obligation was P2M but the car was sold for only P1M. Can the surety recover the deficiency?

A. Yes, otherwise, there would be solution indebiti;

B. Yes, no law prohibits him from doing so as he is not the direct creditor;

C. No. In the foreclosure of a pledge, if the price of the sale is less than the indebtedness secured by the pledge, the creditor shall not be entitled to recover the deficiency, notwithstanding any stipulation to the contrary.

D. Yes, if there is a stipulation.

Correct : C. No. In the foreclosure of a pledge, if the price of the sale is less than the indebtedness secured by the pledge, the creditor shall not be entitled to recover the deficiency, notwithstanding any stipulation to the contrary.

45. A obtained a loan from B secured by a mortgage over his house & lot. B failed to pay hence, A foreclosed the mortgage but it was sold for less than the amount of the obligation. Can B recover the deficiency?

A. A cannot recover the deficiency because the law on pledges are applicable to the law on mortgages where there is a prohibition against recovery of deficiency.

B. A can recover the deficiency as there is nothing in the law that prohibits the same.

C. A can appropriate the object because the contract provides for it.

D. A can sue B for sum of money and foreclose the mortgage if B cannot pay the judgment obligation.

Correct : B. A can recover the deficiency as there is nothing in the law that prohibits the same.

46. Within what period should an action to foreclose a mortgage over real property be filed?

A. Within 10 years from date of registration of the contract;

B. Within 10 years from the execution of the contract;

C. Within 10 years from demand, for unless demand is prove, there can be no default. (Nunez v. GSIS Family Bank, 17 November 2005);

D. Within 10 years from notarization of the contract.

Correct : C. Within 10 years from demand, for unless demand is prove, there can be no default. (Nunez v. GSIS Family Bank, 17 November 2005);

47. A and B are married. They have a joint account in a bank. They executed a survivorship agreement that upon the death of one of them, the full amount of money in their account shall become the property of the survivor. Is the agreement valid?

A. No, because it is a donation mortis causa which did not comply with the formalities of the law;

B. No, it is a donation inter vivos prohibited under Article 87, Family Code;

C. Yes, because it is an aleatory contract subject to an uncertain even which is death of either party. (Art. 2010, NCC; Vitug v. CA, 183 SCRA 755)

D. No, by reason of public policy.

Correct : C. Yes, because it is an aleatory contract subject to an uncertain even which is death of either party. (Art. 2010, NCC; Vitug v. CA, 183 SCRA 755)

48. A placed a bet of P10,000.00 that San Beda would win the NCAA basketball championship. B accepted the bet. But B refused to pay after SBC won. Is B correct?

A. Yes, because of the principle of mutuality of contracts;

B. Yes, because of the principle of liberty of contracts;

C. No, because the law prohibits betting in basketball even if it is not a game of chance;

D. Yes, because basketball is a game of skill and not of chance.

Correct : C. No, because the law prohibits betting in basketball even if it is not a game of chance;

49. A sold his car to B, but the latter failed to register the car under his name. While B was driving the car, it met an accident resulting in injuries to C. Who may be liable?

A. C can hold A liable alone as he is the registered owner of the car;

B. C can sue A and B as they are solidarily liable;

C. C can sue B alone as the execution of the document of sale and delivery of the car conferred ownership upon him;

D. C can sue B, but A can file a third party complaint against B for reimbursement if he is adjudged liable.

Correct : D. C can sue B, but A can file a third party complaint against B for reimbursement if he is adjudged liable.

50. A constructed a building for B. Twenty-five (25) years thereafter, the building collapsed due to lack of necessary repairs resulting in the death of 10 tenants of the building. Who is liable?

A. the architect

B. A, the contractor.

C. the engineer

D. B.

Correct : D. B.

51. A, bus conductor killed a passenger. Is the operator civilly liable?

A. Yes, based on contract, but with defense of the diligence of a good father of a family;

B. Yes, based on quasi-delict;

C. Yes, based on breach of contract of carriage, but cannot interpose the defense of due diligenc;

D. Yes, but subsidiary in case of insolvency of the driver.

Correct : C. Yes, based on breach of contract of carriage, but cannot interpose the defense of due diligenc;

52. A, a seaman with a contract for two (2) years was required to disembark due to the sale of the vessel. Within what period should he file an action to collect his unpaid wages for one (1) year?

A. Within 3 years because it is the consequence of an employer-employee relationship;

B. Within 10 years because there is a written contract;

C. Within 4 years because the action is based on injury to his rights as there was no justifiable reason for his separation from employment. (Art. 1146, NCC; Pantil Co. v. Aujar, 09 November 1988; Valencis v. Portland Cement, 106 Phil. 732);

D. Within 10 years because the action is based on law.

Correct : C. Within 4 years because the action is based on injury to his rights as there was no justifiable reason for his separation from employment. (Art. 1146, NCC; Pantil Co. v. Aujar, 09 November 1988; Valencis v. Portland Cement, 106 Phil. 732);

53. ABC Corp. is the owner of a hospital where Doctor A is a visiting consultant. A conducted an operation at the hospital of a woman-neighbor but left two (2) gauzes inside the inscission of the patient resulting in infections and eventual death of the patient. Who can be sued for damages?

A. The patient’s heirs can sue the doctor alone for his negligent act.

B. The heirs can sue the hospital alone.

C. The heirs can sue the hospital and the doctor solidarily because of the doctrine of corporate negligence of the hospital.

D. The heirs can sue the hospital and the doctor because the doctor is an employee, hence, they are solidarily liable.

Correct : C. The heirs can sue the hospital and the doctor solidarily because of the doctrine of corporate negligence of the hospital.

54. A is a teacher of St. Jude elementary school. While the pupils were in class, B, one of the pupils boxed the face of C, another pupil resulting in the blindness of his left eye. Who is liable?

A. The parents of B are liable.

B. The school is liable.

C. The teacher is liable regardless of the nature of the school.

D. The teacher is not liable because the school is not a school of arts and trades.

Correct : C. The teacher is liable regardless of the nature of the school.

55. A is the owner of a car driven by B. While on his way to fetch A at his office, the motor vehicle met an accident resulting in the death of C, a pedestrian. He was sued for imprudence resulting in homicide and convicted with civil indemnity in the amount of P500,000.00. Who may be liable for the amount of damages?

A. Only B is a liable.

B. A & B are solidarily liable if A cannot prove the diligence of a good father of a family in the selection and supervision of B.

C. A is subsidiarily liable in case of insolvency of B.

D. A cannot be liable because he was not a party to the criminal action, otherwise, he would be deprived of the right to due process.

Correct : C. A is subsidiarily liable in case of insolvency of B.

56. A is an owner of a horse. He asked B to take care of it while reviewing for the Bar Exams. After the examination, he went to B to get back the horse but as he got near the horse, he was kicked by the horse on his face resulting in his blindness. He sued B for damages. Is B liable for damages?

A. B is not liable because of a force majeure.

B. B is liable because at the time A was injured B was in possession of the horse.

C. A is not entitled to an award of damages because the injury is self-inflicted being the owner of the house.

D. A is not entitled to damages because of his own negligence.

Correct : B. B is liable because at the time A was injured B was in possession of the horse.

57. ABC Corp. is a furniture manufacturing company. One weekend, the manager and two (2) employees had an overtime to finish a work upon instruction of A, the President. At 12:00 midnight they were through with the work, so B, the manager went back home driving a company car but dropped by a coffee shop to have midnight snacks and a cup of coffee. At 1:30 a.m., he was driving the company car on his way home when a motorcycle collided with the car resulting in the death of C, the motorcycle rider. At the time of the collision, a woman shouted “Papa” as she was surprised by the sudden collision. Who is liable for the death of C?

A. The company is liable because the manager was still performing his tasks.

B. B alone is liable because at the time of the accident, he was not performing his tasks.

C. The company & B are solidarily liable.

D. B, but in case of insolvency, the company.

Correct : B. B alone is liable because at the time of the accident, he was not performing his tasks.

58. A & B are married. They have a 10-year old son, C. X & Y, who are childless filed a petition for adoption on June 16, 2010, seeking to adopt C. It was submitted for resolution on December 15, 2010. On December 31, 2010 C was playing with a neighbor D who is likewise a minor, using the airgun of C’s father. He pointed the gun to D, squeezed the trigger and killed D. The petition was granted on January 10, 2011. Who may be liable?

A. The parents of D can sue A & B for damages.

B. The parents of D can sue X & Y for damages because the effects of adoption are retroactive to the date of the filing of the petition for adoption.

C. The parents of D can sue A & B, X & Y for damages who are solidarily liable.

D. The parents of D can sue C represented by his parents but his properties can be made to answer for the damages sustained.

Correct : A. The parents of D can sue A & B for damages.

59. A promised marriage to B, a gainfully employed girl. Before the marriage, they agreed that B would resign from the job, hence, a week before the date set for the wedding, B resigned, but A did not comply with the promise of marriage. B sued A for damages. Is A liable for damages?

A. A is not liable because mere breach of promise to marry is not an actionable wrong.

B. A is liable because there was an act independent of the breach of promise to marry.

C. A is not liable because it is his right to back out from the wedding.

D. A is not liable because it was voluntary for B to resign and that she is presumed to take care of her own concerns.

Correct : B. A is liable because there was an act independent of the breach of promise to marry.

60. A, an employee of XYZ Corp., receiving a salary of P40,000.00 per month died due to a vehicular accident. During the trial of the case filed by his heirs, the latter failed to produce his income tax returns as he never filed the same with the BIR and yet, they were claiming for damages due to unearned income. Is the defendant liable?

A. The defendant is not liable for the unearned income as there was no documentary evidence to prove the same.

B. The defendant is liable because testimonial evidence is sufficient to prove the unearned income.

C. The defendant is liable because the law automatically provides for liability in case of death.

D. The defendant is liable as it is the natural consequence of his wrongful act.

Correct : A. The defendant is not liable for the unearned income as there was no documentary evidence to prove the same.

61. A killed B. After trial A was convicted of the crime of murder and the court imposed the penalty of reclusion perpetua. Which amount of civil indemnity may be awarded by the court?

A. P50,000.00

B. P75,000.00

C. P3,000.00

D. P150,000.00, the actual earnings of B.

Correct : B. P75,000.00

62. In an information for murder, there is no allegation of aggravating circumstances. The prosecutor, however presented evidence on the aggravating circumstances during the trial. What for is the presentation of evidence of aggravating circumstances if they were not alleged?

A. To prove that the accused may be liable for moral damages.

B. To prove the guilt of the accused beyond reasonable doubt.

C. To prove that the accused is liable for exemplary damages.

D. He cannot do it because he can only prove what has been alleged in the information.

Correct : C. To prove that the accused is liable for exemplary damages.

63. X is the owner of a domesticated dog. He left it at his compound while at work. Y, a neighbor threw stone at the dog, trying to play with it as he used to do. The dog was hit, hence, it jumped from the compound of X and went after Y who got injured when he fell while running away from the dog. Is X liable for damages?

A. X is liable as owner/possessor of the dog.

B. X is not liable because of force majeure.

C. X is not liable because of Y’s fault for throwing stones at the dog.

D. X is liable but the court will temper the award of damages due to contributory negligence of Y.

Correct : D. X is liable but the court will temper the award of damages due to contributory negligence of Y.

64. A and B entered into a contract for B to construct the house of A for P10M. XYZ are partners engaged in the construction of houses. As they are friends of A, they told him that they can construct his house for only P8M and told him to cancel the contract with B. He cancelled the contract with B. What is the right of B?

A. B can sue A for breach of contract.

B. B can sue XYZ partnership because of interference in contractual relationship.

C. B can sue X,Y,Z for inducing A to violate his contract.

D. B can sue A, and XYZ partnership for breach of contract.

Correct : B. B can sue XYZ partnership because of interference in contractual relationship.

65. A had a 4-storey building which was constructed by Engineer B and at the same time the contractor. After five years, the building developed cracks and its stairway eventually gave way and collapsed due to poor quality of materials used in the construction, resulting to injuries to some lessees. Who should the lessees sue for damages?

A. A, the owner;

B. Both A and B;

C. B, the contractor;

D. No one because of wear and tear of the building.

Correct : C. B, the contractor;

66. ABC Corp. is an owner of a Medical School & Hospital. X, a commentator of a radio station verbally attacked the corporation hence, the latter sued him for damages. Is the school entitled to moral damages?

A. ABC Corp. is not entitled to moral damages because it has no nervous system to feel the wounded feelings and besmirched reputation.

B. ABC Corp. is entitled to moral damages because it has a personality that can be maligned, tarnished or demeaned;

C. X, the commentator can interpose the defense of truth.

D. No, because it cannot suffer sleepless nights.

Correct : B. ABC Corp. is entitled to moral damages because it has a personality that can be maligned, tarnished or demeaned;

67. A & B are married. B who was then pregnant by six (6) months was on board a bus going to the office. The vehicle met an accident resulting in injuries to B and death of the fetus. They sued the bus company for damages due to the death of the fetus. Is the company liable?

A. A & B are entitled to an award of compensatory damages in the amount of P50,000.00 for the death of the fetus.

B. A & B can be entitled to an award of moral damages for the death of the fetus.

C. A & B are not entitled to any amount of damages because the fetus has yet to be born in order to die.

D. A & B are entitled to damages because the fetus had life inside the womb of the mother which the constitution and the law protect.

Correct : B. A & B can be entitled to an award of moral damages for the death of the fetus.

68. A courted B and promised to marry her. The wedding was set on February 14, 2011 but at the date set for the celebration. A did not appear at the church. B sued A for damages for breach of promise to marry alleging that all preparations have been made and there were so many people who attended their scheduled wedding. She knew however that A was married but still submitted herself to sexual desires of A. Is A liable?

A. A is not liable because mere breach of promise to marry is not an actionable wrong.

B. A is liable because he caused sleepless nights, wounded feelings to B by not appearing at the church.

C. B is not entitled to damages because of mutual lust.

D. B has to bear her own losses.

Correct : C. B is not entitled to damages because of mutual lust.

69. A raped and killed a minor girl. He was convicted after trial. He can be held liable for exemplary damages. What is the basis?

A. The basis of the award of exemplary damages is found solely in Article 2230, NCC;

B. Exemplary damages can only be awarded if there is more than one (1) aggravating circumstances;

C. Exemplary damages can also be awarded where the circumstances of the case show the highly reprehensible or outrageous conduct of the offender and to set a public example, to serve as deterrent to elders who abuse and corrupt the youth and to protect the latter from sexual abuse.

D. The existence of aggravating circumstances.

Correct : C. Exemplary damages can also be awarded where the circumstances of the case show the highly reprehensible or outrageous conduct of the offender and to set a public example, to serve as deterrent to elders who abuse and corrupt the youth and to protect the latter from sexual abuse.

70. A was one of the passengers of a vessel of Sulpicio Lines that sank resulting in the death of hundreds of passengers including A. The heirs of A filed an action for damages praying for compensatory, exemplary, moral damages. The brothers and sisters intervened and prayed for moral damages. Are they correct?

A. Yes, the brothers and sisters of A are entitled to moral damages because of the mental anguish they suffered by reason of A’s death;

B. Yes, the brothers and sisters of A are entitled because the law provides that moral damages may be recovered in the following and analogous cases, they being collateral relatives who are entitled to inherit;

C. No, only the spouse, legitimate and illegitimate descendants and ascendants of A are entitled to an award of moral damages;

D. The brothers and sisters of A are entitled to moral damages because of the injury suffered by them due to the act or omission of Sulpicio which was the proximate cause of A’s death.

Correct : C. No, only the spouse, legitimate and illegitimate descendants and ascendants of A are entitled to an award of moral damages;

71. A and B are married. They have been in possession of an agricultural land of the public domain as early as 1935. After their death C and D, their heirs inherited the same. Can they register the land?

A. No, because the land forms part of the public domain;

B. Yes, because their predecessors have been in possession continuously, openly, publicly and adversely of an alienable land of the public domain as early as June 12, 1945 thus, converting ipso jure the same to private land;

C. No, because of the Regalian Doctrine;

D. No, because prescription does not lie against the State.

Correct : B. Yes, because their predecessors have been in possession continuously, openly, publicly and adversely of an alienable land of the public domain as early as June 12, 1945 thus, converting ipso jure the same to private land;

72. A owns a parcel of land. Through the natural current of the river, there was a gradual increase in the area from 11,000 square meters to 13,000 square meters in a period of 8 years. Can A register the land?

A. No, because it is a public land;

B. No, because he has not acquired it by prescription as the State is not bound by the rules on prescription;

C. Yes, being the riparian owner, he is the owner of the accretion;

D. No, because he has not possessed it for a period of 10 years.

Correct : C. Yes, being the riparian owner, he is the owner of the accretion;

73. A is the owner of a parcel of land adjoining a river. There is an accretion formed through the natural current of the river. In 1980, his neighbor took possession of the accretion. In 2011, B filed an application for registration. Will the petition prosper?

A. No, because A is the owner being the owner the land to which the accretion is attached;

B. No, because the accretion is a public land;

C. Yes, having acquired it by prescription after 30 years of possession even in bad faith and without title;

D. No, because the title of A is imprescriptible, the accretion being covered by the phrase “more of less.”

Correct : C. Yes, having acquired it by prescription after 30 years of possession even in bad faith and without title;

74. A is the owner of a parcel of land covered by TCT No. 1 consisting of 10,000 square meters more of less adjoining the river bank. Accretion was formed which has been in the possession of B in 1990, but it was disposed of by the Director of Lands to B in s2010. Is the Director correct?

A. Yes, because the accretion forms part of the alienable land of the public domain;

B. Yes, because of the Regalian Doctrine;

C. No, because it belongs to A, being the riparian owner, hence, a private land;

D. Yes, because of prescription.

Correct : C. No, because it belongs to A, being the riparian owner, hence, a private land;

75. A filed an application for confirmation of imperfect or incomplete title over a parcel of land. It was dismissed. Can A re-file the same?

A. No, because of res judicata;

B. Yes, because the dismissal does not constitute res judicata unless dismissed with prejudice;

C. No, because the dismissal means that A has not been able to establish his right, hence, the second application is a fishing expedition;

D. No, because of lack of cause of action.

Correct : B. Yes, because the dismissal does not constitute res judicata unless dismissed with prejudice;

76. A filed an application for confirmation of imperfect or incomplete title. B filed an opposition alleging that the land is part of the inalienable lands of the State. Is B correct?

A. Yes, because anyone can invoke the interest of the State;

B. No, because only the State can invoke its interest;

C. Yes, by reason of public policy;

D. Yes, because any Filipino is a real party in interest.

Correct : B. No, because only the State can invoke its interest;

77. X is a naturalized Filipino. In 1990, he migrated to the USA and embraced American citizenship. In 2010, he returned to the Philippines and asks you whether he can own a residential lot in Manila. What is your advice?

A. Yes, he being a former natural-born citizen, he can own up to 5,000 square meters;

B. No, because only former natural-born citizens can own land in the Philippines up to 5,000 square meters in Manila;

C. Yes, because he has the same rights as a former natural born citizen;

D. Yes, otherwise, there would be a violation of the equal protection clause.

Correct : B. No, because only former natural-born citizens can own land in the Philippines up to 5,000 square meters in Manila;

78. A, an American citizen is married to B, a Filipina. Through the pension and savings of A, they acquired a residential lot in Manila, but it was registered under B’s name. B sold the property to C. Can A seek to recover the property?

A. Yes, because the sale is void as it was done without the consent of A;

B. Yes, because B as trustee, she cannot sell the property;

C. No, because even if the property was acquired with A’s money, he cannot own land in the Philippines;

D. Yes, otherwise B would enrich herself at the expense of A.

Correct : C. No, because even if the property was acquired with A’s money, he cannot own land in the Philippines;

79. In the question above who can file an action to recover the property?

A. A can recover the property because the contract of sale is void;

B. The State by filing a petition for reversion;

C. The State by filing a petition for escheat;

D. No one because the title is valid especially so that B is married to a Filipino.

Correct : C. The State by filing a petition for escheat;

80. A and B are compadres. They own two (2) adjacent parcels of land covered by TCT Nos. 1 and 2 respectively where they reside. With the use of fraud, A registered the property of B under his name in 2009. Can B recover the title?

A. No, because one (1) year after the issuance of the title, it became imprescriptible;

B. No, because of the indefeasible nature of the title after one (1) year from its issuance;

C. Yes, because the title of A is void;

D. No, because a void act can be the root of a valid title.

Correct : C. Yes, because the title of A is void;

81. In the question above A sold it to C while the title is clean. C registered it under his name. Can B recover the title?

A. No, because C is a buyer in good faith and for value as the title was clean when it was sold;

B. No, because of the mirror doctrine;

C. Yes, because C is not a buyer in good faith having closed his eyes to things that he saw when he bought it;

D. No, because of the indefeasibility of his title.

Correct : C. Yes, because C is not a buyer in good faith having closed his eyes to things that he saw when he bought it;

82. A is the owner of a parcel of land covered by a TCT No. 1. B stole the title, forged his signature and transferred it under his name. TCT No. 2 was issued under his name. He sold it to C who registered under his name. When returned to the Philippine in 2010, he discovered that his title was transferred to another. Can he recover the same?

A. Yes, because the title of C is void;

B. No, because the title of C is valid because he is a buyer in good faith and for value;

C. No, because even if the title of B is void, a void title can be the root of a valid title if it passes to a buyer in good faith and for value;

D. Yes, because the title of B being void, it cannot produce a valid title.

Correct : C. No, because even if the title of B is void, a void title can be the root of a valid title if it passes to a buyer in good faith and for value;

83. Of the following properties enumerated, which is disposable?

A. Mineral land

B. Military reservation

C. Forest land

D. Agricultural land

Correct : D. Agricultural land

84. X and Y are married. They have a son Z. When X died, Z inherited a property covered by TCT No. 1. Z died without any issue. Y inherited it and obtained a title. There is however no inscription of the reservable character of the property. Y sold it to A who obtained a title. Y died in 2009. Can B, C and D, the reservatarios recover the property?

A. Yes, because the property is reserved to them by law;

B. Yes, because Y could not have sold it being a mere trustee;

C. No, because A is a buyer in good faith and for value;

D. Yes, because Y could not have sold that which she did not own.

Correct : C. No, because A is a buyer in good faith and for value;

85. In the problem, above, Y executed an affidavit stating the foregoing circumstances. It was inscribed/registered in the day book of the register of deeds. Can the reservatarios recover?

A. No, because the title of A is indefeasible;

B. No, because A is a buyer in good faith and for value;

C. Yes, because A is not a buyer in good faith and for value, as the registration of the affidavit in the day book of the Register of Deeds is notice to the whole world;

D. No, because the affidavit was not recorded/annotated at the back of the title.

Correct : C. Yes, because A is not a buyer in good faith and for value, as the registration of the affidavit in the day book of the Register of Deeds is notice to the whole world;

86. The Roponggi property of the Philippines was sought to be sold to help raise funds to finance the various economic projects of the State. If you were consulted on this legal matter, what would be your advice?

A. It can be sold because it is a patrimonial property of the State;

B. It cannot be sold because it is a property of the State intended for public use and public service;

C. It can be sold because it is a disposable property;

D. It can only be sold if the Director of Lands reclassifies it to a patrimonial property.

Correct : B. It cannot be sold because it is a property of the State intended for public use and public service;

87. May there be registration of a parcel of land already decreed in favor of another?

A. Yes, due to prescription;

B. Yes, due to laches;

C. No, the land registration court has no jurisdiction to order the registration of a property already registered, otherwise, it is void; (MWSS v. CA, 215 SCRA 783)

D. Yes, for as long as there is compliance with the due process clause.

Correct : C. No, the land registration court has no jurisdiction to order the registration of a property already registered, otherwise, it is void; (MWSS v. CA, 215 SCRA 783)

88. A is the owner of a parcel of land covered by TCT No. 1. He leased it to B. When sued for ejectment, B contended that A’s title is void. Is he correct?

A. Yes, because if A’s title is void, he has no right to sue B for ejectment;

B. No, because that is a collateral attack on A’s title;

C. Yes, because the decision on the title would be res judicata to the issue of the right to eject A;

D. Yes, because a decision on the title of A is prejudicial to the right to eject B.

Correct : B. No, because that is a collateral attack on A’s title;

89. A leased a parcel of land from B. With the consent of B, A constructed his house. If B will file an application for registration of the land, what will happen to the house?

A. It will be included in the registration as improvement thereon unless A files an opposition and asks that his right be annotated on the title;

B. A can have it registered independently;

C. A need not file an opposition as the court will order the registration of the land without the house because registration under PD 1529 applies only to land;

D. A can oppose alleging that he has a better right to register since he is in actual possession.

Correct : A. It will be included in the registration as improvement thereon unless A files an opposition and asks that his right be annotated on the title;

90. What is the remedy of an owner of a titled land in case it was registered by another with the use of fraud under his name?

A. He can file an action for reconveyance within 10 years from the discovery of the fraud;

B. He can file an action for reconveyance within 10 years from the date of registration since the registrant is merely holding it as a trustee.

C. He can file an action for reconveyance at anytime since the title is void, hence, the right to file the action is imprescriptible;

D. He has to file the action within 4 years from the discovery of the fraud.

Correct : B. He can file an action for reconveyance within 10 years from the date of registration since the registrant is merely holding it as a trustee.

91. A was able to register a mineral land under TCT No. 1 as early as 1950. After his death, his children B and C inherited it and sold to D. What is the remedy of the State if it chooses to recover it today?

A. File a petition for escheat;

B. File an action for reversion which is imprescriptible (Rep v. Animas, 56 SCRA 499);

C. Cannot file any action anymore because the title has become indefeasible;

D. Cannot recover anymore because while A’s title was void, D has acquired it in good faith and for value.

Correct : B. File an action for reversion which is imprescriptible (Rep v. Animas, 56 SCRA 499);

92. May a corporation hold or own alienable lands of the public domain?

A. Yes, to become sustainable;

B. Yes, because the term persons under PD 1529 is used in its generic sense to include artificial persons;

C. No, it can only lease;

D. Yes, for a limited time.

Correct : C. No, it can only lease;

93. A is the owner of a property covered by TCT No. 10. As early as 1950, he knew that his title has been transferred under the name of B, but did nothing to recover it, knowing that B has been in possession. Can he file an action to recover it today?

A. Yes, because the title is imprescriptible and indefeasible;

B. Yes, because B’s title is void, hence, the action to declare it void is imprescriptible (Art. 1410, NCC);

C. No more because of laches. While a title is imprescriptible, under certain exceptional circumstances, it may yield to the principle of laches. (Heirs of Lacamen v. Heirs of Laruan, July 31, 1985)

D. No, because of estoppel.

Correct : C. No more because of laches. While a title is imprescriptible, under certain exceptional circumstances, it may yield to the principle of laches. (Heirs of Lacamen v. Heirs of Laruan, July 31, 1985)

94. If a parcel of land covered by a homestead patent is sold, what is the period of redemption?

A. Within 5 years from registration of the deed;

B. Within 5 years from the date of the conveyance (Sucaldito v. Montejo, February 6, 1991);

C. Within 5 years from the date of the conveyance plus one (1) year redemption period under the Rules of Court.

D. Imprescriptible because the sale is void.

Correct : C. Within 5 years from the date of the conveyance plus one (1) year redemption period under the Rules of Court.

95. A was granted a homestead patent on April 3, 2009. On April 29, 2011, she sold it to C. Is the sale valid?

A. Yes, because the right to sell is inherent in the right of ownership;

B. No, the sale is void as the law prohibits the sale within 5 years from the issuance of the patent; (Heirs of Bajenting v. Bañez, September 20, 2006)

C. Yes, anyway, she can repurchase it;

D. Yes, because there is no prohibition at the back of the title.

Correct : B. No, the sale is void as the law prohibits the sale within 5 years from the issuance of the patent; (Heirs of Bajenting v. Bañez, September 20, 2006)

96. May a person file an application for registration of a part of the reclamation undertaken by a local governmental unit?

A. Yes, because it is an alienable land;

B. Yes, because it is a private land;

C. No, because reclaimed lands of the public domain may only be leased not sold to private parties as they retain their inherent potential as areas for public use or public service. (Chavez v. Public Estates Authority, 384 SCRA 152);

D. Yes, because a local government unit is vested with a juridical capacity to enter into contracts.

Correct : C. No, because reclaimed lands of the public domain may only be leased not sold to private parties as they retain their inherent potential as areas for public use or public service. (Chavez v. Public Estates Authority, 384 SCRA 152);

97. If a parcel of land sought to be registered is located in two (2) provinces, where should the case be filed?

A. In both provinces;

B. If declared for taxation purposes in one (1), then in that province;

C. If the boundary has already been determined and there are now plans for the two (2) provinces, then file the same in each of the provinces;

D. If the land has been declared for taxation purposes in one province, then, file it in the said province even if the boundary has not yet been determine. (Note: The boundary should have been determined.)

Correct : C. If the boundary has already been determined and there are now plans for the two (2) provinces, then file the same in each of the provinces;

98. In an application for land registration, there was an opposition. Can the oppositor pray for affirmative relief that he be declared the owner?

A. No, because he was not an applicant;

B. Yes, provided he can adduce evidence to prove his interest. (City of Manila v. Lock, 19 Phil 324)

C. No, because there was no publication which is mandatory;

D. No, otherwise there would be violation of the due process clause.

Correct : B. Yes, provided he can adduce evidence to prove his interest. (City of Manila v. Lock, 19 Phil 324)

99. Within what time should a decree of registration be reopened?

A. Within four (4) years from the issuance of the decree of registration;

B. Within 30 days from receipt of the decree;

C. Within one (1) year from the issuance of the decree of registration; (Lopez v. Padilla, 45 SCRA 44; Eland Phils. Inc. v. Garcia, et al., G.R. No. 173289, February 17, 2010);

D. Imprescriptible.

Correct : C. Within one (1) year from the issuance of the decree of registration; (Lopez v. Padilla, 45 SCRA 44; Eland Phils. Inc. v. Garcia, et al., G.R. No. 173289, February 17, 2010);

100. What is the ground for the reopening of a decree of registration?

A. Intrinsic fraud;

B. Newly discovered evidence;

C. Actual fraud (Eland Phils. Inc. v. Garcia);

D. Mistake.

Correct : C. Actual fraud (Eland Phils. Inc. v. Garcia);