PHINMA EDUCATION 6.

) Statement I – A supports B, a minor, because

BAM 026 – OBLIGATIONS AND CONTRACTS B’s father refuses t support B. the father is obliged
FINAL EXAMINATION - SECOND SEMESTER- S.Y to reimburse A. the source of obligation is Quasi-
2019-2020 contract.
Duration – 3 hours Statement II - The basis of the liability of a
school when a student is stabbed inside the
1.) Which of the following is a civil obligation? campus by a stranger is contract.
a) The obligation of a catholic church to hear a. True; true b. True; false
mass every Sunday. c. False; true d. False; false
b) The obligation of a husband and wife to Ans. A
observe fidelity
c) A obliges himself to pay B P10,000 on 7.) When something is received when there is no
October 30,2011. right to demand it, and it was unduly delivered
d) C is a debtor of D for P20,000 due on thru mistake, the recipient has the duty to return
September 30,1995. it
Ans. C a. Quasi contract
b. Quasi delict
2.) The right of the creditor that is enforceable c. Negotiorum gestio
against anybody is, what kind of right? d. Solution indebiti
a) Moral Ans. D
b) Personal
c) Natural 8.) Statement I - Quasi- contract is a fault or act
d) Real or omission of care which causes damage to
Ans. D another, there being no pre- existing contractual
relations between the parties.
3.) An obligation in which the subject matter is an Statement II - A mango tree in the land of O is
act to be done or not to be done reclining towards the road. All of a sudden,
a. Real Obligation without a storm or an earthquake or even strong
c. Positive personal obligation wind, the tree falls hitting a car belonging to X
b. Personal Obligation causing a P200,000 damage. The liability of O to X
d. Negative personal obligation arises from Quasi – delicts.
Ans. B a. True; true b. True; false
c. False; true d. False; false
4.) The following are the elements of an obligation, Ans. C
except
a. Active and passive subjects 9.) Omission of the diligence which is required by
c. Prescription the circumstances of person, place and time
b. Efficient cause a) Ignorance
d. Vinculum juris b) Negligence
Ans. C c) Insanity
d) Impotence
5.) Which of the following is not a civil obligation Ans. B
a. The obligation to pay taxes
b. The obligation to return the treasure found in 10.) A bought biscuits from a grocery store and
mysterious island through the use of treasure was hospitalized due to food poisoning as a result
map. of toxic substance contained in the biscuits sold to
c. The obligation of the thief to return the car he retailers by the Ace Foods Inc. A is now suing the
stolen said producer corporation for damages. Decide:
d. The obligation to support your family a) Ace Foods Inc is not liable to A because the
e. None of the above latter was negligent in eating the biscuit
Ans. E despite the presence of harmful substance
therein.
 b) Ace Foods Inc. is liable for damages due to 15.) Spontaneous products of the soil and the
quasi-delicts due to its negligence in the offspring and other products of animals
preparation of the biscuits thus causing a. Natural
damage to A. b. Industrial
c) A must claim damages from the grocery c. Civil
store and not from the producer since the d. Penal
grocery was the one which sold the Ans. A
poisoned food to A.
d) A has no right to claim for damages from 16.) A and B promise to deliver a particular car
the producer because there was not valued at P100,000 to C on or before September
contract between them. 15,2000. September 15, 2000 came and upon
Ans. B demand by C from delivery from A and B, A was
willing to deliver but B refused to deliver. In the
11.) Statement I – A thing is generic if it is capable case at bar:
of particular designation. a. B shall be liable for P50,000 without damages
Statement II - A thing is specific if it belongs and A shall be liable for P50,000 damages.
to a class, to a genus and cannot be pointed out b. C can demand delivery of the car from A or B.
with particularity. c. Both A and B shall be liable for P50,000 each
a. True; true b. True; false with damages.
c. False; true d. False; false d. An action for specific performance will lie
Ans. D against both A and B.
Ans. D
12.) The initial standard of care that a person is
obliged to give something must observe in the 17.) A sold to B the former’s horse for P5,000. No
preservation of the specific thing subject matter date is fixed by the parties for the performance of
of an obligation. their respective obligations. The obligation of A is:
A. That diligence of a good father of a family. a. To deliver the horse within a reasonable time of
B. That diligence which the parties have two months from the contract date.
stipulated on. b. To deliver the horse upon the payment of B of
C. That diligence which the law provides. P5,000.
D. None of the above. c. To deliver the horse immediately as there is a
Ans. A perfected contract
d. To rescind the contract as there is not time fixed
13.) Statement I. When what is to be delivered is a for the delivery and payment.
determinate thing, the creditor may compel the Ans. B
debtor to make the delivery and if the debtor
refuses, the creditor may ask that the obligation be 18.) All of the following are accessories, except
complied with at the expense of the debtor a. Key to the house
Statement II. The obligation to give a c. Trees on the land
determinate thing includes that of delivering all its b. Frame of the picture
accessions and accessories, even though they may d. Bracelet of the watch
not have been mentioned Ans. C
a. True, true b. True, false
c. False, true d. False, false 19.) Statement I - If a person obliged to do
Ans. C something fails to do it, the same shall be executed
at his cost.
14.) From the time the fruits have been delivered, Statement II – The remedy for an obligation not
the creditor shall acquire to do is to ask the debtor that what has been done
a. Real right b. Personal right be undone.
c. Moral right d. None of these a. True, true b. True, false
Ans. A c. False, true d. False, false
Ans. A
20.) Which of the following is demand necessary to shooting was just an accident. A filed a complaint
make the debtor in delay in the performance of his for damages against B and XYZ School. What is the
obligation? basis of XYZ School liability.
a. When the time of performance is of the essence a. Culpa-contractual
b. When demand would be useless c. Culpa-aquiliana
c. When the time of performance has been b. Culpa-criminal
stipulated d. No liability
d. When the law so provides Ans. A
Ans. C
26.) I - Default on the part of both parties is called
21.) Damages awarded to vindicate a right Compensation morae
a. Exemplary b. Actual II - Default on the part of the creditor is called
c. Nominal d. Liquidated Mora accipiendi
Ans. C III - Debtor’s default in personal obligation is
called Mora solvendi ex- re
22.) Statement I. If a person obliged to do IV - Debtor’s default in real obligation is called
something fails to do it, the same shall be executed Mora solvendi ex- persona
at his cost
Statement II. Those who in the performance of a. 1 statement is true
their obligations are guilty of fraud, negligence, or b. 2 statements are true
delay and those who in any manner contravene the c. 3 statements are true
tenor thereof, are liable for damages d. All statements are true
a. True, true b. True, false Ans. B
c. False, true d. False, false
Ans. A 27.) 1st Scenario: Mr. X waived in advance his right to sue Mr.
A, if A will cause him injury due to A’s negligence.
23.) Statement I - Liability for damages arising
2nd Scenario: X makes an agreement with Y whereby Y will
from fraud is demandable and there can be a
not file an action in court against X should X commit in
waiver of an action for past fraud.
fraud in the performance of his obligation.
Statement II - There can be a waiver of an
action for future negligence but not fraud. Which is/are valid waiver?
a. First is true, second is false a. Only first scenario is valid
b. Second is true, first is false b. Only second scenario is valid
c. Both are true c. Both are valid
d. Both statements are false d. Both scenario is not valid
Ans. C Ans. A

24.) Culpa aquiliana as distinguished from culpa 28.) It imports a dishonest purpose or some moral
contractual obliquity or conscious doing of a wrong.
a. Proof of the contract and of its breach is a. Negligence c. Misconduct
sufficient prima facie to warrant recovery b. Bad Faith d. Delay
b. The source of liability is the defendant's Ans. B
negligent act or omission itself
c. Proof of due diligence in the selection and 29.) D obliged himself to give a specific car to C on
supervision of employees is not available as a December 25, 2013, stipulating that D is liable
defense even if the thing is lost due to fortuitous event, and
d. The negligence of the defendant is merely an without the need of a demand. On the due date,
incident in the performance of the obligation the car got lost due to fortuitous event. Which of
Ans. B the following is correct?
a. Obligation is totally extinguished.
25.) A was a student of XYZ School when he was b. C can require another person to deliver a car,
shot by B, one of the security guards on duty at expenses chargeable to D.
the school premises. The latter explain that the c. C can compel D to deliver another car.
d. Obligation remains to subsist, but converted c. With the resolutory period upon the debtor's will
into monetary consideration. d. With a condition dependent upon the debtor's
Ans. D will.
Ans. B
30.) The following presumptions are satisfactory if
not contradicted, except 35.) Which of the following is not an obligation with
a. The money paid by one to another was due to a period?
the latter. a. Obligation payable within 2 years
b. That official duty has been regularly perfomed b. Obligation payable within a reasonable time
c. That a person takes extra-ordinary care of the c. Obligation payable on or before a given date in
thing due the future
d. That a person intends the ordinary d. None of the above
consequences of his voluntary act Ans. D
Ans. C
36.) A obliged himself to deliver to B his dog, his
31.) If the obligor binds himself to perform his cow, his carabao, his elephant or his crocodile and
obligation as soon as "he shall have obtained a gave B the right of choice. The first two were lost
loan" from a certain bank, this obligation is: due to fortuitous event and the last three were lost
Suspensive due to A’s fault.
With a term a. Creditor, B may convert to cash any of them
Conditional plus damages.
Resolutory b. Debtor A may convert to cash the value of the
Ans. C last one lost plus damages.
c. A may rescind the contract plus damages.
32.) A promissory note signed by D and dated d . Creditor, B may convert to cash any of the last
March 15, 2002 is worded as follows, “I promise to three plus damages.
pay C the sum of Fifty Thousand Pesos (P50,000) Ans. D
provided that if she should fail in the October,
2002 CPA Examination, she shall return to me 37.) A and B are solidary debtors of C, D, E and F
said amount.” The above note gives rise to an joint creditors in the amount of P20,000. How
obligation with much can C collect from A?
A. Suspensive condition a. C could collect P2,500 from A
B. Casual condition b. C could collect the whole P20,000 from A but
C. Resolutory condition will in turn give P5,000 each to D, E and F.
D. None of the above c. C could collect P5,000 from A
Anc. C d. C could collect from A P10,000. C is then obliged
to give P2,500 each to D, E and F.
33.) Statement I -Impossible, unlawful, immoral Ans. C
conditions are not valid and not demandable
except the obligations which depend upon them. 38. A, B and C bound themselves to deliver to X a
Statement II - Potestative condition to be void specific car worth P3M. Due to the fault of A, the
must both be suspensive and dependent on the car was lost. In this case
debtor's will. a. X can claim damages from any one of the three
a. Both are false. for his proportionate part of liability because the
b. First is false, second is true. obligation is indivisible
c. First is true, second is false. b. Only A is liable for damages although B and C
d. Both statements are true. are liable for their respective shares in the
Ans. B obligation
c. X can claim only from A the whole amount of
34.) When the debtor binds himself to pay when damages other than the value of the car
his means permit him to do so is one: d. Since it is solidary liabilities for damages, X can
a. With the condition to be fixed by court claim the same from any of the three
b. With the period dependent upon the debtor's will Ans. B
39.) Statement I - In obligations with a penal and the motorcycle was totally destroyed. Is
clause, the penalty shall substitute for damages Cornell still liable?
and the payments of interest in case of a. No, because there was no demand by Jeff to
noncompliance. deliver the motorcycle and the specific object was
Statement II – Proof of actual damage suffered lost due to fortuitous event. The obligation is
by the creditor is necessary in order that the extinguished.
penalty may be enforced. b. Yes, because the contract is perfected.
a. Both are false. c. Yes, the obligation to deliver the motorcycle is
b. First is false, second is true. changed to pay the equivalent value because
c. First is true, second is false. Cornell is in legal delay.
d. Both statements are true. d. No, even if Cornell was already default, he could
Ans. C plead impossibility of performance.
Ans. A
40.) D obliges himself to pay C P100,000 in 30
days plus a penalty of P20,000 if A fails to pay the 44.) D obliged himself to give a specific car to C on
obligation in due time. D failed to pay his December 25, 2013, stipulating that D is liable
obligation in 30 days. C can demand from D even if the thing is lost due to fortuitous event, and
a. The principal amount of P100,000 plus the without the need of a demand. On the due date,
penalty of P20,000 plus interest. the car got lost due to fortuitous event. Which of
b. The principal amount of P100,000 plus legal the following is correct?
interest. a. Obligation is totally extinguished.
c. The principal amount of P100,000 plus the b. C can require another person to deliver a car,
penalty of P20,000, plus interest, plus damages. expenses chargeable to D.
d. The principal amount of P100,000 plus the c. C can compel D to deliver another car.
penalty of P20,000. d. Obligation remains to subsist, but converted
Ans. D into monetary consideration.
Ans. D
41.) Means not only the delivery of money but also
the performance, in any other manner of an 45. A, B and C solidarily owe solidarily creditors X
obligation. and Y P30,000. X remitted the entire obligation in
a. Payment favor of A. The effect is:
b. Condonation a. A can recover from B and C their respective
c. Merger of rights share of the debt.
d. Compensation b. A cannot recover from B and C because
Ans. A remission in his favour extends to the benefit of B
and C.
42.) A owes B P20,000 which became due and c. The obligations is not yet extinguished until Y is
payable last June 23, 2013. On that date, A offered paid by X his share of the credit.
B P10,000, the only money he then had, but B d. The obligation is not extinguished until A
refused to accept the payment. A, thereafter met C, collects from B and C.
B's 23 year old son, to whom he gave the P10,000 Ans. B
with the request that he turn the money over to B.
The money was stolen while C's possession. How 46.) The following are requisites of condonation, except:
much may B still recover from A? a. It must be onerous
a. P15,000 c. P -0- b. The parties must have capacity
c. The condonation must not be inofficious
b. P10,000 d. P20,000
d. The condonation must comply with the forms of
Ans. D
donation
Ans. A
43.) Cornell obliged himself to give Jeff his
motorcycle on January 20, 2014. There was no 47.) A, B and C are jointly liable to D in the amount of
delivery until January 30, 2014 when the garage of P9,000. D assigns the entire credit to A. In this case
the motorcycle collapsed due to a strong typhoon a. A becomes the new creditor and may demand from B
and C P4,500 each
b. A’s share in the obligation is extinguished because of conditions as they may deem convenient, provided
confusion they are not contrary to law, moral, public policy
c. The obligation is extinguished because of confusion and public order, refer to the principle of
d. B and C will not be liable to A
A. Autonomy of contract
Ans. B
B. Relativity of contract
C. Consensuality of contract
48.)1st Statement: D owes C P10,000 due on December
D. Mutuality of contract
25, C owes D P6,000 on December 25. D’s
obligation is guaranteed by G. On the due date if D Ans. A
is insolvent G is liable to C for P10,000, the latter (G)
cannot set up compensation because he is not a 53.) I – Innominate contracts are those which have
principal debtor. own individuality and are regulated by special
2nd Statement: D owes C P10,000 payable on provisions of law
December 25. Later, D through intimidation, was II – Nominate are those which lack of
able to make C sign a promissory note stating that C individuality and are not regulated by special
is indebted to D for the same amount. In here, D
provision of law
cannot be required to pay C P10,000 because he (D)
can set up compensation against C.
a. Both are false.
b. First is false, second is true.
A. B. C. D.
1st True False True False
c. First is true, second is false.
Statement d. Both statements are true.
2nd True False False True Ans. A
Statement
Ans. D 54.) The contact must bind both contracting
parties
49.) In novation, which of the following is incorrect? A. Consensuality of contract
a. If the original obligation is subject to a suspensive B. Simplicity of contract
condition, the new obligation is not subject to the same C. Mutuality of contract
condition unless stated D. Relativity of contract
b. If the new obligation is void, original obligation shall Ans. C
subsist.
c. In expromission, the insolvency of the new debtor
shall not revive the action of the creditor against the
55.) As a general rule, contract takes effect only
original debtor. between the parties, there assigns and heirs.
d. While if the condition is resolutory, the new is also Which of the following is not an exception
resolutory condition, unless otherwise stated. a. When there’s a stipulation pour autrui
Ans. A b. When a third person comes into possession of
an object of a contract over which there is a real
50.) In order that novation can take place, the right
concurrence of the following requisites are c. Where the contract entered by a stranger
indispensable, except: intends to defraud the creditor
a. There must be a previous void obligation
d. None of the above
b. There must be an agreement of the parties concerned
Ans. D
to a new contract
c. There must be extinguishment of the old contract
d. There must be the validity of the new contract 56.) Not a requisite of stipulation pour autrui
Ans. A a. The contracting parties must have clearly and
deliberately conferred a favor upon third person
51.) The following are classification of a contract b. The stipulation must be part of the contract
according to their perfection except c. The third person communicated his acceptance
a. Consensual to the obligor before its revocation
b. Real d. There must be an agency between either of the
c. Principal parties and the third person
d. Solemn
Ans. D
Ans. C

52. The principle that contracting parties may

57.) The meeting of minds regarding the object and
establish such stipulations, clauses, terms and cause of the contract (stage in the life of a contract)
A. Conception 62.) Neither an essential nor accidental element of
B. Preparation a contract
C. Death A. Cause or consideration
D. Birth B. Consent
Ans. D C. Warranty against eviction
D. Penal cause in a contract
58.) I – when a compromise agreement is given Ans. C
judicial approval, it becomes more than a contract
binding upon the parties. 63.) Neither an essential nor natural element of a
II – The effect of judicial approval is that it contract
makes the contract immediately executory and not a. Cause or consideration
appealable, except for vices of consent or forgery b. Consent
a. Both are false. c. Warranty against eviction
b. First is false, second is true. d. Penal cause in a contract
c. First is true, second is false. Ans. D
d. Both statements are true.
Ans. D 64.) Statement I - Natural Elements are those
presumed to exist in certain contracts.
59.) A sold his land to B. The sale was made orally. Statement II - Accidental Elements are
B paid the agree price. B wanted to have the sale particular stipulations, clauses, terms, or
registered but he needs a public instrument. conditions established by the parties in their
Which is correct? contract.
a. B may sue A for the return of his money as no a. Both are false.
one shall be unjustly enriched at the b. First is false, second is true.
expense of another. c. First is true, second is false.
b. B cannot demand the return of the purchase d. Both statements are true.
price because the sale is unenforceable. Ans. D
c. B may compel A to execute the public
instrument because the sale is valid. 65.) 1st Statement: A threat to enforce one’s claim
d. B may only occupy and use the land as buyer in through competent authority, if the claim is just or
good faith legal, does not vitiate consent
Ans. C 2nd Statement: Contracts entered into during a
lucid interval are valid. Contracts agree to in a
60.) D borrowed P10,000 from C in whose favour state of drunkenness or during a hypnotic spell are
he executed as promissory note. In the note it is binding
stated that D is acting as the agent of P and that A. B. C. D.
the money is intended for P. P never authorized D 1st True False True False
to borrow money from C. What is the effect of the Statement
contract entered by D? 2nd True False False True
a. Valid Statement
b. Rescissible Ans. A
c. Voidable
d. Unenforceable 66.) When there is concurrence of offer and
Ans. D acceptance, there is
A. Payment
61.) Which is not an essential element of a contract B. Consignation
a. Cause or Consideration C. Consent
b. Object Certain D. Tender of payment
c. Penal Clause Ans. C
d. Consent of the contracting parties
Ans. C
67.) The following contracts are not perfected until
the delivery of the object of the obligations, except
a. Pledge Ans. C
b. Deposit
c. Commodatum 72.) Which of the following contracts is not
d. Sale obligatory
Ans. D a. Oral Contract
b. Written Contract
68.) A, a person of legal age and an agent of X, sold c. Partly oral and partly in writing
10 grams of shabu to B who is a minor of 16 years. d. Answer not given
The shabu was sold for P600 which is actually less Ans. D
than its actual market value of P1,000 thereby
incurring a loss of P400 on the part of X. Worse, 73.) Which of the following contracts is enforceable
the contract of sale was not reduced into writing. even if not reduced in writing.
What is the status of the contract? a. Representation as to the credit of a third person
a. The contract of sale is voidable because one b. Agreement for the sale of immovable property
party is a minor. c. Contract executed by one of the parties in a
b. The contract is rescissible because of lesion. contract
c. The contract is unenforceable considering it was d. Lease of immovable for a period longer than one
orally done. year
d. The contract is void. Ans. C
Ans. D
74.) A sold his land to B. The sale was made orally.
69.) In a contract, as written, D promises to pay C B paid the agree price. B wanted to have the sale
P10,000 on September 15, 1997. The registered but he needs a public instrument.
consideration received by D is not stated in the Which is correct?
contract. A. B may sue A for the return of his money as no
a. The contract is valid because the cause is always one shall be unjustly enriched at the
presumed to exist expense of another.
b. The contract is valid so long as it is in writing B. B cannot demand the return of the purchase
c. The contract is valid because cause is not price because the sale is unenforceable.
essential to a contract C. B may compel A to execute the public
d. The contract is void because cause is not stated instrument because the sale is valid.
Ans. A D. B may only occupy and use the land as buyer in
good faith
70.) Statement I – Cause is the immediate or direct Ans. C
reason why the parties entered into a contract.
Statement II – The illegality of the cause or 75.) Which contract need not to appear in public
motive affects the validity of a contract. instrument
a. Both are false. a. A contract of loan between A and B with 20%
b. First is false, second is true. interest, payable on January 1, 2021.
c. First is true, second is false. b. A contract between X and Y that the latter will
d. Both statements are true. renounce his share in his inheritance.
Ans. C c. D and E enter into a contract appointing the
latter to administer the properties of the former
71.) Which of the following is not valid while he is in the US.
a. Oral donation of Samsung phone worth d. Answer not given
P4,800.00 Ans. A
b. A appoints B as his agent to sell his only
property, located at BGC Taguig, at P1M. The
appointment was evidence by SPA. 76.) When, there having been a meeting of the
c. A donates his vacation house to B. The donation minds of the parties to a contract, their true
was evidence by a private instrument signed by intention is not expressed in the instrument
Atty. C, the best friend of A. purporting to embody the agreement. The parties
d. A and B orally entered into a contract of loan. may ask for
a.) Rescission null and void.” The insured did not give notice.
b.) Annulment Decide.
c. Reformation a. The contract is valid because the insured is not
d. Ratifcation in bad faith
Ans. C b. The contract is valid because the requirement to
give notice is not indispensable to the contract.
77.) Statement I – Interpretation is a remedy by c. The contract is void because the terms are very
which a written instrument is amended or rectified clear insured violated the condition.
so as to conform to the real agreement or intention d. The contract is void because it is onerous
of the parties. Ans. C
Statement II – Reformation is the
determination of the meaning of the terms or words 82.) B and S entered into a contract of sale. It is
used by the parties in their contract. not disputed that the land they intend to buy and
a. Both are false. sell is the one located at Baguio. However, on their
b. First is false, second is true. contract, it was stipulated that the land located in
c. First is true, second is false. Batangas is their object. Which land should S give
d. Both statements are true. to B.
Ans. A a. The land in Batangas
b. The land in Baguio
78.) Reformation is not allowed in the following c. B will decide which land
cases, except d. None, because the contract is void
a. Simple donation inter vivos where no condition Ans. B
is imposed
b. Last will and testaments 84.) A is the guardian of B, a minor. A sold B’s land
c. When the real agreement is void in writing to C valued at P1M for P.7M. The sale is
d. When one party is planning to brought an action (stage in the life of a contract)
to enforce the instrument A. Rescissible
Ans. D B. Voidable
C. Unenforceable
79.) The act of determining the meaning of the D. Void
terms or words used by the parties Ans. A
a. Reformation c.
85.) Which of the following is an absentee
Ratification
a. A, son of B, residing in USA since birth.
b. Interpretation d. Vindication
b. C a superhero whose domicile is unknown
Ans. B
c. E, an employee of F, who was absent since
December last year without official leave.
80.) B and S entered into a contract of sale. It is
d. G, a soldier deployed in Marawi since 2014,
not disputed that the reasonable value of the land
whose whereabouts is still unknown.
sold is P100,000. However, the price stated is
Ans. D
P300,000. How much should B pay to S?
a. P100,000
86.) A person is insolvent when
b. P300,000
a. His properties cannot convert into cash within
c. P200,000
one year
d.None, because the contract is void
b. His liabilities is already due
Ans. A
c. His asset is not sufficient to cover all his
expenses
d. His liabilities is greater than his asset
Ans. D
81.) One of the conditions in a fire insurance policy
is that the insures “must give notice of the
87.) G, the guardian of M, a minor, sold a parcel of
existence of other policies against fire upon the
land to C for P1.4M. The FMV of the land is P2M.
property insured; otherwise, the policy shall be
Upon reaching the age of majority, M ask for the
rescission of the sale on the ground of lesion.
Suppose the contract is successfully rescinded. 91.) Statement 1 – Annulment is a remedy granted
a. C should return the land to M but he cannot by law to the contracting parties in order to secure
recover the amount he paid reparation of damage.
b. C should return the land and the fruits as the Statement 2 – Rescission is a remedy provided
case maybe and ask M to return the amount he by law, for reason of public interest, for the
paid plus interest declaration of the inefficacy of contract based on a
c. C should return the land but not the fruits and defect or vice of consent of the contracting parties
ask M to return the exact amount he paid without in order to restore them to their original position.
interest a. Both are false.
d. M should ask for the payment of damages b. First is false, second is true.
Ans. B c. First is true, second is false.
d. Both statements are true.
88.) Zaire, 12 years old, is the son of Dwyane. The Ans. A
latter sold the house and lot of the former which he
inherited from his grandparents. Dwyane sold it to 92.) Statement 1- Ratification means that one
Lebron for $1,500,000. The market value of the voluntarily adopts some defective or unauthorized
house and lot at the time of sale is $2,000,000. act or contract.
Can Zaire rescind the sale? If yes, when shall he Statement 2 – Ratification cleanses the contract
rescind the contract? from all its defects from the moment it was
a. Yes. He shall rescind the contract within four constituted.
year from the date of sale. a. Both are false.
b. Yes. He shall rescind the contract within four b. First is false, second is true.
years upon reaching the age of majority. c. First is true, second is false.
c. No. He shall respect the decision of his father. d. Both statements are true.
d. No. The contract is not rescissible. Ans. D
Ans. D
93.) P authorized A to sell his car for P200,000
89.) 1st Scenario - A is the guardian of B, a minor. cash. A sold the car to C for P200,000 payable in
B sold A’s land in writing to C valued at P1M for ten monthly instalment. Can C compel P to accept
P.7M. The sale is voidable. the monthly instalment.
2nd Scenario - A contract where consent is a. Yes, because the act of the agent is the act of the
given through mistake, violence, intimidation, principal.
undue influence or fraud is void b. Yes, because P gives A the authority to sell his
a. Both are false. car.
b. First is false, second is true. c. No, because A acted beyond his power.
c. First is true, second is false. d. No, because P needs cash
d. Both statements are true. Ans. C
Ans. C
94.) All of the following contracts need to be in
90.) 1st Statement: A threat to enforce one’s claim writing to be enforceable except
through competent authority, if the claim is just or a. D owes C P10,000 with G as guarantor
legal, does not vitiate consent b. H agrees to build a house worth P1,000,000 for
2nd Statement: Contracts entered into during a W if the latter will marry him
lucid interval are valid. Contracts agree to in a c. S and B mutually promised to sell and buy a
state of drunkenness or during a hypnotic spell are piano at a price of P10,000
binding d. S entered into a contract with B to construct the
A. B. C. D. house of S after six months.
1st True False True False Ans. D
Statement
2nd True False False True 95.) It is a contractual right that gives its holder
Statement the option to enter a business transaction with the
Ans. A owner of something, according to specified terms,
before the owner is entitled to enter into that donate a land to X. Suppose Y did not donate the
transaction with a third party. land to X, can X demand the exact performance?
a. Right of first acceptance a. Yes, the contract is valid and binding between X
b. Right of first refusal and Y.
c. Pre-emptive right b. Yes, the stipulation to donate the land to X is
d. Right to contract obligatory thus shall be complied by Y in good
faith.
96.) Statement I - Parol Evidence refers to verbal c. No, stipulation to live as a common law wife is
expressions or words, such as the testimony of a an immoral act thus void.
witness at trial. d. Answer not given
Statement II - In the context of contracts, deeds, Ans. C
wills, or other writings, parol evidence refers to
extraneous evidence such as an oral agreement or
even a written agreement, that is not included in
the relevant written document.
a. Both are false.
b. First is false, second is true.
c. First is true, second is false.
d. Both statements are true.
Ans. D

97.) D is indebted to C in the sum of P10,000. For

the purpose of avoiding the claims of C, D donated
all his properties worth the same amount to X.
A. The contract is absolutely simulated
C. The contract is merely voidable
B. The contract is rescissible
D. The contract is void
Ans. B

98.) The following, except one, are void or

inexistent contracts.
A. Those which are absolutely simulated for
fictitious.
B. Those which are outside the commerce of
man.
C. Those whose cause or object did not exist at
the time of transaction.
D. Those which contemplate a very difficult
service.
Ans. D

99.) Characteristic of void contracts, except

A. Defense of illegality cannot be waived
B. Cannot be ratified
C. Action for declaration of nullity does not
prescribe
D. The inexistence can be assailed by third
person
Ans. D

100.) X agreed to live as the common-law wife of Y

in consideration of the promise on the part of Y to