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Easy

1. Gio was appointed as guardian of Jillian, the latter being 16 yrs. Old. Gio sold a
parcel of land owned by Jillian in writing to Bea valued at P100 000 at P200 000.
What is the status of the contract?
a. void
b. unenforceable
c. voidable
d. rescissible
e. valid
2. A owned a parcel of land which both B and C wanted to buy. A sold the land to C.
The sale was not registered upon the request of A. Later, the same land was sold to
B by A. Upon the knowledge of the second sale of the same land to B, C tried but
failed to see B to inform him of the prior sale to him. Thereupon C annotated in the
Registry of Property his adverse claim on the property. A week later, B registered
the sale in his favor and took possession by building house on the land. Who is the
rightful owner?
a. C is the rightful owner he having the oldest title in good faith.
b. C is the rightful owner because he as the first buyer of the land.
c. B is the rightful owner having obtained title in his name.
d. B is the rightful owner being the first to register the sale and possess.
3. For value received, A promised to deliver to B on or before August 15 his only
BMV car, as well a 2000 model Sony TV set, 21. Unfortunately, before the
scheduled delivery date, both the car and the TV set which an intended to deliver
were lost in an accidental fire. Has the obligation of A been extinguished?
a. The obligation to deliver both objects was extinguished because they were lost
due to a fortuitous event.
b. The obligation to deliver both objects was not extinguished because it was not
agreed upon the parties that fortuitous event shall absolve the debtor from
responsibility for the loss.
c. The obligation to deliver the TV set is extinguished but not the obligation to
deliver the BMW car.
d. The obligation to deliver the BMW car is extinguished but not the obligation to
deliver the TV set.
4. Dacion en Pago as distinguished fom sale:
a. The object is always existing and specific
b. There is greater freedom in fixing the price
c. There is no pre-existing obligation
d. The cause is price.
5. When does the buyer of a thing have the right to the fruits of the thing bought?
a. From the time the fruits are delivered.
b. From the time the obligation to deliver the thing bought arises
c. From the time the sale is perfected
d. From the time the thing bought is delivered
6. Knowing that the car had a hidden crack in the engine, X sold it to Y without
informing the latter about it. In any event, the deed of sale expressly stipulated that
X was not liable for hidden defects. Does Y have the right to demand from X a
reimbursement of what he spent to repair the engine plus damages?
a. Yes, X is liable whether or not he was aware of the hidden defects.

b. Yes, since the waiver is void. X knew of it but he acted in bad faith in not
disclosing the fact to Y.
c. No, because Y is in estoppel, having changed engine without prior demand.
d. No, because Y waived the warranty against hidden defects.
7. Which of the following is not a right of the unpaid seller?
a. A lien on the goods while in his possession
b. Right of stoppage of goods in transit even if buyer is solvent
c. Right to rescind the sale
d. Right of Resale
8. To be valid and enforceable, the following contracts should be in writing, except:
a. Contract to pay interest on loan
b. Contract of donation of real property
c. Contracts giving authority to an agent to sell a piece of land
d. Contract made in consideration of marriage
9 . X and Y gave their consent ta a contract of sale involving a property in Quezon
City. In the mind of X, he is supposed to buy a Manila property which is also the
same property in the kind of Y as a vendor. In this case the proper remedy to cue
the mistake is
a. Annulment
b. Rescission
c. Reformation
d. Ratification
10. The right given to adjoining of an urban land to be given preference under
certain conditions to purchase the land before it is offered for sale to others
a. Right of redemption
b. Right of pre-emption
c. Equity of redemption
d. Equity of the incumbent

Average
1. D, borrowed a sum of money from C with a certain rate of interest. C now wants
to increase the rate of interest without the consent of D. What principle in contracts
prohibits C from doing so?
a. Autonomy of contracts
b. Relativity of Contracts
c. Mutuality of Contracts
d. Consensuality of contracts
2. Legal subrogation is presumed in the following, except:
a. When a third person, not interested in the obligation , pays with the approval of
the creditor.
b. When a creditor pays another creditor who is preferred, even without the debtors
knowledge.
c. When the third person, not interested in the obligation, pays with the express or
tacit approval of the debtor.
d. When, even without the knowledge of the debtor, a person interested in the
fulfillment of the obligation pays.

3. In case of breach of warranty against eviction, which of the following shall not be
return by the seller?
a. Costs of the suit which brought about the eviction and the suit against the seller
b. Value of the thing at the time of the sale
c. Damages if the seller was in bad faith
d. expenses of the contract borne by the buyer
4. Reformation is not the proper remedy if
a. The mutual mistake of the parties causes the failure of the instrument to disclose
their real agreement
b. One party was mistaken and the other acted fraudulently oe inequitably in such a
way that the instrument does not show their true intention
c. There was mistake, fraud, inequitable conduct o accident which prevented the
meeting of the minds of the contracting parties
d. The true intention of the contracting parties is not expressed in the instrument
purporting to embody the agreement by reason of mistake, fraud, inequitable
conduct or accident.
5. Which of the following is correct?
a. The effect of a conditional obligation to give , once the condition has been
fulfilled, shall retroact to the day of the constitution of the obligation
b. If the obligation is unilateral, the fruits and interest during the pendency of the
condition shall be deemed to have been mutually compensated
c. If the obligation imposes reciprocal prestations upon the parties, the debtor shall
appropriate the fruits and interests received, unless from the nature and
circumstances of the obligation it should be infeed that the intention was different.
d. In an obligation to do and not to do, the parties shall determine, in each
retroactive effect of the condition that has been complied with
6. If at the time the contract of sale is perfected, the thing which is the object of the
contact has been entirely lost, which of the following most accurately completes the
statement?
a. The buyer bears the risk of loss
b. The seller bears the risk of loss
c. The contract shall be without any effect
d. The buyer may withdraw from the contact
7. Statement 1: In sale of personal properties by installment, if the mortgage is
foreclosed and there is still a deficiency, the vendor shall have no further action
against the purchaser to recover the balance. Any agreement to the contract is
void.
Statement 2: In sale on straight terms, if the property mortgaged is foreclosed and
there is deficiency, the mortgagee may maintain an action against the buyer for the
recovery of the deficiency
a. both statements are true
b. both statements are false
c. only statement 1 is true

d. only statement 2 is true


8. One of the following vices of consent results to consent under duress
a. Mistake
b. Fraud
c. Undue Influence
d. Intimidation
9. if the animal should die after its purchase, which of the following is not a requisite
to make a vendor liable?
a. The animal dies within 3 days after its purchase
b. The disease must be redhibitory
c. The disease existed at the time of sale
d. The disease is the cause of the death of the animal
10. A, B, C and D, are solidary debtors sharing at 1:2:3 of solidary creditors W and Y
sharing 1:2. The obligation is 12,000.00.. If B is a minor and C is insolvent and W
condones the obligation of A without the consent of Y. How much can W collect from
A?
a. 8,000
b. 6,000
d. 2,000
d. 0

Difficult
1. Statement A- merger which takes place in the person of the principal debtor or
creditor benefits the guarantors
Statement B- Confusions which takes place in the person of the guarantors does not
extinguish the obligation
a. Only statement A is true
b. Only statement B is true
c. Both statements are true
d. Both statements are false
2. Three of the requisites of cession in payment. Which is the exception?
a. One debtor and one creditor
b. complete or partial insolvency
c. more than one debt
d. abandonment of all debtors property not exempt from execution
3. A passenger in a taxi was hurt because of the drivers negligence. As a result
a. The passenger may bring a civil case of culpa contractual against the driver and
owner of the taxicab company
b. the owner is not liable if he can prove that he exercise the due diligence in the
selection and supervision of the driver
c. The passenger must prove the existence of the contract of carriage and that
there was a breach because he did not arrive at his destination unhurt

d. The passenger must prove that there was negligence on the part of the driver
4. The creditor may already demand fulfillment of the obligation
a. With a suspensive condition
b. With my means permit me to do so
c. With a period in diem
d. With a period ex diem
5. The receipt of the principal by the creditor, without reservation with respect to
the interest , shall give rise to:
a. Conclusive presumption that said interest has been paid
b. Disputable presumption that the creditor is paid as to the principal amount
c. Conclusive presumption that the creditor is not paid as to the principal amount
d. Disputable presumption that said interest has been paid
6. There is no legal delay in
a. Positive personal obligation
b. Obligation to deliver determinate thing
c. Obligation to deliver indeterminate thing
d. Negative personal obligation
7. Dodgies owes Cathy the sum of 100,000 guaranteed by Josie. Sasy, a stranger
to the obligation offers to pay Cathy 100,000 and the latter accept the offer of
payment. However, Dodgie already paid Cathy 45,000. The payment by Sasy is with
the consent of Dodgie. Sasy may recover from Dodgie:
a. 100,000 and to subrogate to the guaranty
b. 55,000 and to subrogate to the guaranty
c. 100,000 but not entitled to subrogate to the guaranty
d. 55,000 only because this is the only amount redounded to the benefit of Dodgie
8. A, B, C, D, E and F were solidary debtors of G to the amount of 270,000. Later in
an agreement with B, C, D,E and F, the debt was reduced by G to 225,000. G sued
A. Because of the partial remission, A was made to pay only 225,000/ How much
can A recover from the other solidary debtors?
a. 1/6 of 270,000 from each plus interest from the time of payment
b. 1/6 of 225,000 from each plus interest from the time of payment
c. 1/5 of 270,000 from each plus interest from the time of payment
d. 1/5 of 225,000 from each plus interest from the time of payment
9. Karen, an art collector, promised Henry, an art student, that if Henry could obtain
certain rare artifacts within two weeks, Karen would pay for Henrys postgraduate
education. At the considerable effort and expenses, Henry obtained the specified
artifacts within the two-week period. When Henry requested payment, Karen
refused. Karen claimed that there was no consideration for the promise. Henry
would prevail against Karen based on
a. Unilateral contract
b. Unjust enrichment
c. Public Policy
d. Quasi Contract
10. Which of the following partnership always have a fixed term?

a. General Partnership
b. Limited Partnership
c. General professional partnership
d. De jure partnership