TEST BANK OBLIGATIONS & CONTRACTS For review purposes only Instruction: Choose the best answer for each question. Write the letter of your answer on the corresponding answer sheet on the last page. If you think that the correct answer is not given among the choices, write “NAWOL”. Break a leg! I. OBLIGATIONS 1. The following are the requisites of an obligation, except A. B. C. D. Passive and active subject Prestation Efficient cause Demand The right of the creditor that is enforceable against a definite debtor is 2. A. B. C. D. Real right Natural right Moral right Personal right 3. Which of the following is a civil obligation? A. B. C. D. X obliges himself to pay Y P10,000 on October 30, 2009. A is a debtor of B for P20,000 due on September 30, 1995. The obligation of a husband and wife to observe fidelity. The obligation of a catholic to hear mass every Sunday. 4. Specific performance may not be possible in this civil obligation A. B. C. D. A, a painter, obliges himself to paint the portrait of B on April 9, 2009 C, a farmer, obliges himself to give his only cow to D on February 14, 2009 E, a veterinarian, obliges himself to give one of his dogs to F on May 1, 2009 G, a registrar of deeds, obliges himself to effect registration of H’s parcel of land on February 28, 2009. 5. The source of obligations which is a rule of conduct, just and obligatory, promulgated by legitimate authorities for common good, benefit and observance A. B. C. Contracts Quasi-contracts Delicts Strictly for BSA 1M, BSA 1O & BSAIS 1A only D. Law 6. A juridical necessity to give, to do or not to do A. B. C. D. Civil obligation Natural obligation Moral obligation Social obligation 7. They give a right of action to compel their performance A. B. C. D. Civil obligation Moral obligation Natural obligation Social obligation 8. The obligee has a right to enforce the obligation against the obligor in a court of law A. B. C. D. Civil obligation Moral obligation Natural obligation Social obligation 9. This is based on equity and justice A. B. C. D. Civil obligation Moral obligation Natural obligation Social obligation 10. The person in whose favor the obligation is constituted A. B. C. D. Obligor Obligee Passive subject Debtor 11. Synonymous to obligee 1. 2. 3. 4. A. B. C. D. Creditor Active subject Debtor Passive subject 1 1 2 3 and and and and 2 4 3 4 12. The person who has the duty of giving, doing or not doing. A. Obligee Strictly for BSA 1M, BSA 1O & BSAIS 1A only B. C. D. Obligor Active subject Creditor 13. Synonymous to obligor 1. 2. 3. 4. A. 1 B. 1 C. 2 D. 3 Creditor Active subject Debtor Passive subject and and and and 2 4 3 4 14. The object or subject matter of the obligation A. B. C. D. Prestation Vinculum Active Subject Passive subject 15. The efficient cause or juridical tie why the obligation exists A. B. C. D. Active subject Passive subject Prestation Vinculum 16. The duty not to recover what has voluntarily been paid although payment was no longer required A. B. C. D. Civil obligation Natural obligation Moral obligation Juridical obligation 17. The following are sources of obligations derived from law, except A. B. C. D. contracts quasi-contracts delicts quasi-delicts 18. Cannot be enforced by court action and depend exclusively upon the good conscience of the debtor. A. Civil obligation B. Natural obligation C. Moral obligation Strictly for BSA 1M, BSA 1O & BSAIS 1A only D. Social obligation 19. A owes B P1,000. A, knowing that the debt has prescribed, nevertheless, still pays B. Can A recover what he voluntarily paid? First answer Yes, because B has no right to demand the payment effected by A. Second Answer No, the payment extinguished the natural obligation. A. B. C. D. Both Both Only Only answers are correct. answers are wrong. the first is correct. the second is correct. 20. The duty to pay taxes and support one’s family are obligations arising from A. B. C. D. Law Contracts Quasi-contracts Delicts 21. The obligation of husband and wife to render mutual help and support arises from A. B. C. D. Contract Law Quasi-contract Quasi-delict 22. A supports B, a minor, because B’s father refuses to support B. The father is obliged to reimburse A. The source of obligation is A. Contract B. Quasi-contract C. Delicts D. Quasi-delicts 23. A juridical relation resulting from a lawful, voluntary, and unilateral act and which has for its purpose the payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of another. A. B. C. D. Contract Quasi-contract Delicts Quasi-delicts 24. When a person voluntarily takes charge of another’s abandoned business or property without the owner’s authority where reimbursement must be made for necessary and useful expenses. A. B. C. Quasi-contract quasi-delict Negotiorum gestio Strictly for BSA 1M, BSA 1O & BSAIS 1A only D. Solutio indebiti 25. When something is received when there is no right to demand it, and it was unduly delivered thru mistake, the recipient has the duty to return it. A. B. C. D. Quasi-contract Quasi-delict Negotiorum gestio Solutio indebiti 26. Statement 1- A quasi-contract is an implied contract. Statement 2 - A defendant who is acquitted in a criminal case is no longer liable civilly. A. B. C. D. True; true True; false False; true False; false 27. Tort or culpa aquiliana is A. B. C. D. Quasi-contract Quasi-delict Negotiorum gestio Solutio indebiti 28. A fault or act or omission of care which causes damage to another, there being no pre- existing contractual relations between the parties. A. B. C. D. Quasi-contract Quasi-delict Negotiorum gestio Solutio indebiti 29. Omission of the diligence which is required by the circumstances of person, place and time. A. B. C. D. Ignorance Negligence Impotence Insanity 30. Unless the law or the stipulation of the parties require another standard of care, every person obliged to give something is also obliged to take care of it with the proper diligence. A. B. C. D. Observing utmost care. Observing extraordinary diligence Of a father of a good family Observing ordinary diligence 31. Ordinary diligence is A. B. Diligence of a good father of a family. Extraordinary diligence Strictly for BSA 1M, BSA 1O & BSAIS 1A only C. D. Diligence required by law Diligence of a father of a good family. 32. The creditor has the right to the fruits of the thing. A. B. C. D. From From From From the the the the time the obligation to deliver it arises. time the fruits have been delivered. time there is meeting of the minds. perfection of the contract. 33. From the time the fruits have been delivered, the creditor shall acquire A. B. C. D. Real right Personal right Moral right Inchoate right 34. If A sells to B a fountain pen, the giving by A to B of the fountain pen is A. B. C. D. Actual tradition Constructive delivery Symbolical tradition Traditio longa-manu Items 35-39 A kind of constructive delivery whereby: 35. There is delivery when the keys of a warehouse are given. A. B. C. D. Traditio Traditio Traditio Traditio simbolica longa-manu brevi-manu constitotum possessorium 36. There is delivery by mere consent or pointing out of an object. A. B. C. D. Traditio Traditio Traditio Traditio simbolica longa-manu brevi-manu constitotum possessorium 37. A possessor of a thing not as an owner, becomes the possessor as owner. A. B. C. D. Traditio Traditio Traditio Traditio simbolica longa-manu brevi-manu constitotum possessorium 38. A possessor of a thing as an owner retains possession no longer as an owner, but in some other capacity A. B. C. D. Traditio Traditio Traditio Traditio simbolica longa-manu brevi-manu constitutom possessorium Strictly for BSA 1M, BSA 1O & BSAIS 1A only 39. The opposite of brevi-manu A. B. C. D. Longa-manu Simbolica Constitutom possessorium Quasi-tradition 40. If a thing is capable of particular designation. A. B. C. D. Generic Specific Indeterminate Indeterminable 41. If a thing refers to a class, to a genus and cannot be pointed out with particularity. A. B. C. D. Generic Specific Determinate Indeterminable 42. A wife was about to deliver a child. Her parents brought her to the hospital. Who should pay the expenses for medical attendance? Answer 1 – The husband, because it is his duty to support his wife and support includes medical attendance. Answer 2 – The parents, because they were the persons who brought the “wife” to the hospital. A. B. C. D. Both Both Only Only answers are correct. answers are not correct. the first is correct. the second is correct. 43. The following are kinds of fruits of an obligation, except A. B. C. D. natural industrial civil penal 44. Spontaneous products of the soil and the offspring and other products of animals A. B. C. D. natural industrial civil penal 45. Products of the soil through cultivation or intervention of human labor. A. B. C. natural industrial civil Strictly for BSA 1M, BSA 1O & BSAIS 1A only D. penal 46. Fruits arising out of contracts- like rental payments. A. B. C. D. natural industrial civil penal 47. When does the obligation to deliver arise? Answer 1 – If there is no term or condition, then from the perfection of the contract. Answer 2 – If there is a term or condition, then from the moment the term arrives or the condition happens. A. B. C. D. True; true True; false False; true False; false 48. A is obliged to give B 10 kilos of sugar, which of the following is not correct? A. B. C. D. B can demand that A obtain the sugar and deliver it to him. B can just buy 10 kilos of sugar and charge the expense to A. A can insist on just paying B damages or the monetary value of the sugar. B may require another person to deliver the sugar and charge the expenses to A. 49. Where demand by the creditor shall be necessary in order that delay may exist. A. B. C. D. When When When When time is of the essence of the contract. demand would be useless. the obligor has expressly acknowledged that he is in default. the obligor requested for an extension of time. 50. Debtor’s default in real obligation. A. B. C. D. Mora accipiendi Mora solvendi ex-re Mora solvendi ex-persona Compensatio morae 51. Debtor’s default in personal obligation. A. B. C. D. Mora accipiendi Mora solvendi ex-re Mora solvendi ex-persona Compensatio morae 52. Default on the part of the creditor A. B. C. Mora accipiendi Mora solvendi ex-re Mora solvendi ex-persona Strictly for BSA 1M, BSA 1O & BSAIS 1A only D. Compensatio morae 53. Default on the part of both parties. A. B. C. D. Mora accipiendi Mora solvendi ex-re Mora solvendi ex-persona Compensatio morae 54. A borrowed money from B payable on December 10, 2008. If A failed to pay on due date, will A be in delay? A. B. C. D. Yes, because there is stipulation as regards the due date. Yes, if the obligation is in writing. No, because demand has not been made by B. No, if A has the money to pay B. 55. Damages awarded for mental and physical anguish. A. B. C. D. Moral Exemplary Nominal Temperate 56. Damages awarded to vindicate a right. A. B. C. D. Liquidated Actual Nominal Exemplary 57. Damages awarded to set an example. A. B. C. D. Exemplary Liquidated Nominal Moral 58. When the exact amount of damages cannot be ascertained. A. B. C. D. Exemplary Liquidated Temperate Moral 59. Damages determined beforehand. A. B. C. D. Temperate Liquidated Actual Moral 60. A obliged himself to deliver to B the following: 1) 2008 Sing-It Yamaha Organ 2) Magalona passenger jeepney with engine No. 69 and chasis No. 88 First Statement- In case A failed to deliver the 2008 Yamaha Organ, Strictly for BSA 1M, BSA 1O & BSAIS 1A only the court may compel A to deliver the 2008 Yamaha Organ plus damages Second Statement - In case A failed to deliver the jeepney, the court may compel A to deliver the jeepney plus damages. A. B. C. D. True; true True; false False; true False; false 61. I – If a person obliged to do something fails to do it, the same shall be executed at his cost. II - Those who in the performance of their obligations are guilty of fraud, negligence, or delay and those who in any manner contravene the tenor threof, are liable for damages. A. B. C. D. True; true True; false False; true False; False 62. I - Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for fraud is void. II – If the law or contract does not state the diligence which is to observed in the performance of an obligation, that which is expected of a father of a good family shall be required. A. B. C. D. True; true True; false False; true False; false 63. I – The receipt of a later installment of a debt without reservation as to prior installments, shall give rise to a rebuttable presumption that such installments have been paid. II – If a taxpayer pays his income tax liability for the current year, there is a presumption that tax liability for the previous year has been paid. A. B. C. D. True; true True; false False; true False; false 64. With regard to the right as to the fruits of the thing, which is not correct? A. B. If the obligation is subject obligation to deliver arises happens. If the obligation is subject obligation to deliver arises to a suspensive condition, the from the moment the condition to a suspensive condition, the upon the expiration of the term or Strictly for BSA 1M, BSA 1O & BSAIS 1A only C. D. period. If there is no condition or term for its fulfillment, the obligation to deliver arises from the perfection of the contract or creation of the obligation. If the obligation arises from the contract of sale, the vendor has a right to the fruits of the thing from the time the obligation to deliver arises. 65. A is obliged to deliver his only car to B on November 20, 2009. If A does not deliver, and on November 22, 2009, a typhoon destroys the car. A. B. C. D. A is not liable because the obligation is extinguished. A is liable because he is in delay. A and B will divide the loss equally. A’s obligation is converted into a monetary obligation. 66. I – When what is to be delivered is a determinate thing, the creditor may compel the debtor to make the delivery and if the debtor refuses, the creditor may ask that the obligation be complied with at the expense of the debtor. II – The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned. A. B. C. D. True; true True; false False; true False; false 67. What is the basis of the liability of a school when a student is stabbed inside the campus by a stranger in the school? A. B. C. D. Contract Quasi-contract Delicts Quasi-delicts 68. The following except one, are included in civil liability. The exception is A. B. C. D. Restitution Reparation Indemnification Starvation 69. The thing itself shall be restored, as a rule A. B. Restitution Reparation Strictly for BSA 1M, BSA 1O & BSAIS 1A only C. D. Indemnification Starvation 70. The court determines the amount of damage taking into consideration the price of the thing and its sentimental value to the injured person. A. B. C. D. Restitution Reparation Indemnification Starvation 71. The consequential damages suffered by the injured person and those suffered by his family or third person by reason of the act. A. B. C. D. Restitution Reparation Indemnification Starvation 72. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors. A. B. C. D. Accion Accion Accion Accion reinvindicatoria pauliana subrogatoria quanti-minoris 73. A borrower agreed, that in case of non-payment of his debt, to render services as a servant. Which of the following is not correct? A. B. C. D. If the services will be rendered in satisfaction of the debt, the stipulation is valid. If the services will be “for free”, the stipulation is void for being contrary to law and morals. If the services will not be gratuitous, specific performance of the service will be the proper remedy in case of non-compliance. Should there be a valid stipulation as regards the rendition of services, an action for damages should be brought in case of non-compliance. 74. A ordered B, a 10 year old boy to climb a high and slippery mango tree with a promise to give him part of the fruits. B was seriously injured when he fell while climbing the tree. Is A liable? First Answer - No, because no person shall be responsible for fortuitous events. Second Answer – Yes, because A is negligent in making the order without taking due care to avoid a reasonable foreseeable injury to B. Strictly for BSA 1M, BSA 1O & BSAIS 1A only A. B. C. D. True; true True; false False; true False; false 75. A pays for B’s transportation fare, without B’s knowledge and later discovers that B was entitled to half-fare. Which is not correct? A. B. C. D. A A A A can can can can recover recover recover recover the half-fare from B. the half-fare from the carrier. the ½ from B and ½ from the carrier. half-fare from B only. 76. A borrowed P100,000 from B. the loan was secured by a mortgage of A’s land in favor of B. Without the knowledge of A, C paid B the sum of P100,000 for A’s debt. As a result A. B. C. D. C may foreclose the mortgage on A’s land if A cannot pay. C cannot claim reimbursement from A in as much as the payment was made without the knowledge of B. C can recover the amount from B in case A refuses to reimburse C. The obligation of A to B was extinguished but A should reimburse C the amount of P100,000 because he was benefited by the payment. 77. When the debtor of a debtor is ordered not to pay the latter so that preference would be given to the latter’s creditor. A. B. C. D. Garnishment Interpleader Injunction Attachment 78. A obtained a loan from B bank. The loan was embodied in several promissory notes. As security the borrower executed a chattel mortgage on his standing crops. Said crops were however subsequently destroyed by typhoon “Rosing”. Is A still liable for the loan despite the destruction of the crops by a fortuitous event? 1st Answer - Yes, the obligation of A was to deliver a generic thing – money. 2nd Answer – No, the obligation was to deliver determinate things – the standing crops. A. B. C. D. True; true True; false False; true False; false Strictly for BSA 1M, BSA 1O & BSAIS 1A only 79. A sold a half-interest in his specific car to B. It was agreed that the price to be paid by B would be used in installing a new engine on the car. Later, the car was destroyed by a fortuitous event. Is B’s obligation to pay the price extinguished? 1st Answer - Yes, there is no more use of installing a new engine since the car has already been destroyed by a fortuitous event. 2nd Answer – No, B must still pay because his obligation to pay in generic. A. B. C. D. True; true True; false False; true False; false 80. I – A commits the crime of theft and is asked to return the car to its owner B. If, before the car is delivered to B it is destroyed by a fortuitous event, Is A’s liability extinguished? II – Using above statement, A had previously asked the owner to accept the car, but the owner without any justifiable reason refuses to accept the car, and it is destroyed by a fortuitous event, Is A’s liability extinguished? A. B. C. D. Yes; Yes No; Yes Yes; No No; No 81. I - There is no delay in an obligation not to do something. II – Solutio indebiti and negotiorum gestio are implied contracts. A. B. C. D. True; true True; false False; true False; false 82. I - Consent of the parties is required in quasi-contract. II – The creditor acquires real rights over the thing from the time the obligation to deliver arises. A. B. C. D. True; true True; false False; true False; false 83. The creditor has a right to the fruits of the thing from the time A. B. The thing is delivered. The fruits are delivered. Strictly for BSA 1M, BSA 1O & BSAIS 1A only C. D. The obligation to deliver the thing arises. The sale is perfected. 84. The buyer has a right to the fruits of the thing from the time A. B. C. D. The The The The thing is delivered. fruits are delivered. obligation to deliver the thing arises. sale is perfected. 85. Which is not considered as quasi-contract? A. B. C. D. Solutio indebiti Negotiorum gestio When the third person with the knowledge of the debtor, pays the debt. Reimbursement due the person who saved property during fire or typhoon without the knowledge of the owner. 86. No longer enforceable by court action but is binding on the party who oblige with it in conscience is A. B. C. D. Civil obligation Natural obligation Moral Obligation Conditional obligation 87. If A pays a debt that has prescribed 1. Not knowing it has prescribed, A can recover on the ground of undue payment. 2. Knowing it has prescribed, A cannot recover for this would be a case of natural obligation. A. B. C. D. Both Only Only Both 1 1 2 1 and 2 are true is true is true and 2 are false 88. On June 24, 2009 A is obliged to give B his specific car. There was no delivery until June 30 when the garage of the car collapsed due to heavy rain and strong winds of Typhoon Ondoy, and the car was totally destroyed. Is A still liable? A. B. C. D. No, even if A was in default, he could plead impossibility of performance.] Yes, because the contract is perfected. No, because there was no demand by B to deliver the car. Yes, the obligation to deliver the car is changed to pay the equivalent value because B is in legal delay. Strictly for BSA 1M, BSA 1O & BSAIS 1A only 89. This obligation is demandable at once when it A. B. C. D. has a resolutory condition. has a suspensive condition is with a term ex-die has a period. 90. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be with a A. B. C. D. Resolutory period Suspensive condition Potestative Condition Period 91. A promise to give B his Volvo car if B passes the CPA Board Exams. Pending the results of the exams, the car is destroyed by a fortuitous event without any fault on the part of A, As a result A. B. C. D. The obligation The obligation The obligation A will have to of A of A of A give is extinguished. is converted into monetary obligation. will equitably reduced. B another car of equivalent value. 92. A period with a suspensive effect. A. B. C. D. I I I I will will will will support support support support you you you you beginning January 1 of next year. until January 1 of next year. if A dies of TB. if A marries B 93. A period with a resolutory effect. A. B. C. D. I I I I will will will will support support support support you you you you beginning January 1 of next year. until A dies. if A dies. if A dies of TB 94. The obligation begins only from a day certain or upon the arrival of said period. A. B. C. D. Ex die In diem Conditional With a Period 95. The obligation remains valid up to a time certain but terminates upon the arrival of said period. A. B. With a period Conditional Strictly for BSA 1M, BSA 1O & BSAIS 1A only C. D. Ex die In diem 96. Anything paid or delivered before the arrival of the period, the obligor being unaware of the period or believing that the obligation has become due and demandable. A. B. C. D. May May May May be recovered without interests. be recovered with interests. be recovered with fruits and interests. not be recovered. 97. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit A. B. C. D. Of Of Of Of both the creditor and debtor the creditor only the debtor only the third persons 98. This is a valid obligation. A. B. C. D. A A A A will will will will give give give give B B B B P100,000 if B will kill C. P1,000,000 if B will agree to be the mistress of A. P100,000 if B can make C rise from the dead. P1,000 if B will not pose nude in a painting session. 99. Where two or more prestations have been agreed upon but only one is due, the obligation is A. B. C. D. Alternative Facultative Conjoint Solidary 100. Using the preceding number, the right of choice, belongs A. B. C. D. To To To To the debtor the creditor both the creditor and debtor third person Strictly for BSA 1M, BSA 1O & BSAIS 1A only II. CONTRACTS 1. These are elements of a contract which are derived from the nature of the contract and ordinarily accompany the same. A. Natural B. Special C. Essential D. Accidental 2. It is a contract where each of the parties acquires an equivalent of his prestation and such equivalent is pecuniarily appreciable and already determined from the moment of the celebration of the contract. A. Aleatory B. Commutative C. Nominate D. Innominate 3. It refers to the principle that once a contract is perfected, it shall be of obligatory force upon both of the contracting parties A. Obligatory force B. Mutuality C. Autonomy D. Relativity 4. It refers to the principle that the contracting parties are free to enter into a contract and to establish such stipulations, clauses, terms, and conditions as they may deem convenient. A. Obligatory force B. Mutuality C. Autonomy D. Relativity 5. It refers to the essential equality of the contracting parties whereby the contract must bind both of them A. Mutuality B. Obligatory force C. Autonomy D. Relativity 6. It refers to the principle that the contract takes effect only between the parties, their assigns and heirs. A. Obligatory force B. Autonomy C. Relativity D. Mutuality 7. It is a stipulation in a contract, clearly and deliberately conferred by the contracting parties as a favor upon a third person, who must communicate his acceptance of the favor or benefit to the obligor before it could be revoked. A. Contract of adhesion B. Stipulation pour autrui C. Stipulation au pair D. Contra bonos mores Strictly for BSA 1M, BSA 1O & BSAIS 1A only 8. In an offer to sell, parties failed to agree on the size of the land to be sold. Is there a meeting of the minds of the parties that would perfect a contract? A. There is no consent that would perfect a contract as there is no agreement on the exact area to be sold. B. There is consent because the land is still identified. C. There is consent because there is agreement to sell and to buy. D. The information given is insufficient to answer the question. 9. A contract of adhesion is generally: A. Void B. Unenforceable C. Voidable D. Valid 10. A. B. C. D. Under this theory, a contract is perfected from the moment the acceptance is declared or made. Expedition Theory Manifestation Theory Reception Theory Cognition Theory In the Philippines, which theory on perfection of contracts is followed? A. Cognition Theory B. Expedition Theory C. Reception Theory D. Manifestation Theory 11. On March 5, 1956, A wrote a letter to B offering him the lease of a building. On March 6, 1956, at 1:00PM, B sent a letter of acceptance which was received by A at 4:00PM that day. But at 2:00PM, A had already sent B a letter of withdrawal of the offer which was received by B at 5:00PM. When was the contract perfected A. At 1:00PM B. At 2:00PM C. At 4:00PM D. The contract has not been perfected 12. What is the effect of the death, civil interdiction, insanity, or insolvency of the either the offeror or offeree before acceptance is conveyed? A. The offer becomes ineffective. B. The offer is still effective. C. As against the offeror only, the offer becomes ineffective. D. As against the offeree only, the offer becomes ineffective. 13. 14.A 15.A contract entered into by a minor who misrepresents his age is: A. Void B. Valid C. Voidable D. Unenforceable contract entered into by and between two deaf-mutes is: Void Valid Voidable A. B. C. Strictly for BSA 1M, BSA 1O & BSAIS 1A only D. Unenforceable 16.A contract entered into by and between two persons of who both insane is: A. Valid B. Void C. Voidable D. Unenforceable If a person prohibited to enter into a contract, enters into a contract, such contract is: A. Void B. Valid C. Voidable D. Unenforceable 17. 18.What is the difference between a mistake of A. A mistake of law vitiates consent which fact and a mistake of law? renders a contract voidable; while a mistake of fact does not render a contract voidable. B. Both mistakes of fact and of law render a contract voidable. C. Both mistakes of fact and of law do not render a contract voidable. D. A mistake of fact vitiates consent which renders a contract voidable; while a mistake of law does not render a contract voidable. Is there any exception to the rule that a mistake of law cannot vitiate consent rendering the contract voidable? A. Mistake as to the object of the contract (error in re) B. Mistake as to person (error in persona) C. Mutual error as to the legal effect of an agreement when the real purpose of the parties is frustrated, may vitiate consent. D. There is no exception. 19. 20.When is an A. Simple B. When a instrument not capable of reformation? donations inter vivos wherein no condition is imposed mutual mistake of the parties causes the failure of the instrument to disclose their real agreement. C. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention. D. When one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed the fact from the former. 21.When is an instrument not capable of A. When through the ignorance, lack reformation? of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties. B. Wills C. If 2 parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely, or with a right of repurchase. D. Where the real agreement is voidable. 22.Where shall the action for reformation of instrument A. Ordinary action for declaratory relief Strictly for BSA 1M, BSA 1O & BSAIS 1A only be instituted? B. C. D. Ordinary action for reformation of instrument Ordinary action for quo warranto Special civil action for declaratory relief X, of age, entered into a contract with Y, a minor. X knew and the contract specifically stated the age of Y. May X successfully demand annulment of the contract? A. No, the party who has capacity cannot allege the incapacity of the party with whom he contracted. B. No, the annulment will prejudice the interests of the minor. C. Yes, since Y is a minor, the contract is voidable. D. Yes, as long as Y Joins X in asking for annulment. 23. A and B entered into a verbal contract whereby A agreed to sell to B his only parcel of land for P10,000 and B agreed to buy at the aforementioned price. B went to the bank, withdrew the same amount and returned to A for the consummation of the contract. A, however, had changed his mind and refused to go through with the sale. Will an action by B against A for specific performance prosper? A. No, A and B must seek to resolve the dispute first before going to the court. B. Yes, because B already withdrew the money from the bank. C. No, it is not evidenced by anything in writing properly signed by A. D. Yes, A has already agreed with B which made the agreement binding to both parties. 24. Under this principle, when the defect of a void contract consists in the illegality of the cause or object of the contract, and both of the parties are at fault, the law refuses them every remedy and leaves them where they are. A. In pari delicto B. Contra bonos mores C. Caso fortuito D. Res ipsa loquitur 25. 26.What is an example of a natural A. Warranty against eviction B. Form C. Consent D. Consideration element of a contract? The limitations upon the right of the contracting parties to establish such stipulations, clauses, terms, and conditions as they may deem convenient are: A. Law, morals, good customs, and public order only B. Law, morals, and good customs only C. Law, morals, and public order only D. Law, morals, good customs, public order, and public policy 27. Under this theory, a contract is perfected from the moment the acceptance comes to the knowledge of the offeror. A. Reception Theory B. Cognition Theory C. Expedition Theory D. Manifestation Theory 28. 29. A contract entered into by an incapacitated person is A. Void B. Voidable Strictly for BSA 1M, BSA 1O & BSAIS 1A only C. D. Valid Unenforceable It means that the object should be susceptible of appropriation and transmissible from one person to another. A. The object is real or possible. B. The object is licit. C. The object is within the commerce of men. D. The object is determinate, or at least, possible of determination, as to its kind. 30. If parties enter into a contract with respect to things outside the commerce of men, the contract is: A. Void B. Voidable C. Valid D. Unenforceable 31. It refers to the doctrine that “When the true intention of the parties to a perfected and valid contract are not expressed in the instrument purporting to embody their agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation of the instrument so that such true intention may be expressed. A. Doctrine of interpretation of instruments B. Doctrine of resolution of instruments C. Doctrine of reformation of instruments D. Doctrine of expression of instruments 32. It is a remedy granted by law to the contracting parties, and even to third persons, to secure the reparation of damages caused to them by a contract, even if the same should be valid, by means of the restoration of things to their condition prior to the celebration of the contract. a. Recission b. Annulment c. Reformation d. Declaratory Relief 33. 34.How is rescission A. In rescission, different from resolution? the action may be instituted not only by a party to the contract but even by third persons; whereas in resolution, the action may be instituted only by a party to the contract. B. In rescission, the only ground is failure of one of the parties to comply with what is incumbent upon him; whereas in resolution, several grounds are lesion, fraud and others expressly specified by law. C. In rescission, the law expressly declares that courts shall have the discretionary power to grant an extension for performance provided that there is a just cause; whereas in resolution, the court has no power to grant an extension of time for the performance of the obligation so long as there is ground for resolution. D. In rescission, only reciprocal contracts may be rescinded; whereas in resolution, any contract, whether unilateral or reciprocal may be resolved. Strictly for BSA 1M, BSA 1O & BSAIS 1A only What is the nature of an action for rescission? A. Primary B. Secondary C. Subsidiary D. Ordinary 35. 36.When should an action A. Within 4 years B. Within 6 years C. Within 5 years D. Within 10 years for rescission be filed? 37.What is the period of prescription for an action for annulment of a voidable contract? A. 4 years B. 5 years C. 6 years D. 10 years It refers to the act or means by virtue of which efficacy is given to a contract which suffers from a vice of curable nullity. A. Resolution B. Prescription C. Annulment D. Ratification 38. Marky, husband of Kwenie, sold paraphernal property in her name without her consent. The sale is: A. Valid B. Void C. Voidable D. Unenforceable 39. A and B entered into a verbal contract whereby A agreed to sell to B his only parcel of land for P10,000 and B agreed to buy at the aforementioned price. B went to the bank, withdrew the same amount and returned to A for the consummation of the contract. A, however, had changed his mind and refused to go through with the sale. The agreement to sell the land to B A. Void B. Valid C. Voidable D. Unenforceable 40. A owes B P10,000 due on March 10, 2010. A owes B P8,000 due on March 11, 2010. A obliged himself to deliver to B a cow valued at P6,000 on March 12, 2010. On March 13, 2010, a paid B P10,000. If A makes an application of payment, 41. A. B. C. D. 42. The P10,000 should be applied to the first debt only The P10,000 should be applied to the second debt only The P10,000 may be applied either to the first debt or second debt The P10,000 may be applied to the first debt, or to the second debt or to the third debt The conception of a contract is when Strictly for BSA 1M, BSA 1O & BSAIS 1A only A. B. C. D. When When When When there is meeting of the minds negotiations are in progress the contract is executed the parties come to an agreement If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the parties to a contract, the proper remedy is 43. A. B. C. D. Ratify the contract Ask for a specific performance Annulment of the contract Reformation of the contract A sold his land to B. The sale was made orally. B paid the agree price. B wanted to have the sale registered but he needs a public instrument. Which is correct? 44. A. B may sue A for the return of his money as no one shall be unjustly enriched at the expense of another. B cannot demand the return of the purchase price because the sale is unenforceable. B may compel A to execute the public instrument because the sale is valid. B may only occupy and use the land as buyer in good faith B. C. D. Acceptance of an offer made by letter or telegram shall bind the offeror. From the time the 45. A. B. C. D. Offeree accepted the offer Offeree sent his letter or telegram Acceptance came to the knowledge of the offeror Offeror made the offer A contract where consent is given through mistake, violence, intimidation, undue influence or fraud is 46. A. B. C. D. Rescissible Voidable Unenforceable Void The mortgagor will execute an instrument to transfer the ownership over the property mortgaged to the mortgagee if the debt is not paid at maturity is 47. A. B. C. D. Void Voidable Valid Unenforceable A, B and C are jointly liable to D in the amount of P9,000. D assigns the entire credit to A. In this case 48. Strictly for BSA 1M, BSA 1O & BSAIS 1A only A. B. C. D. The obligation is extinguished because of confusion B and C will not be liable to A a becomes the new creditor and may demand from B and C P4,500 each A’s share in the obligation is extinguished because of confusion. One is not a requisite needed in order that obligation shall be extinguished by loss or destruction of the thing due: 49. A. B. C. D. When When When When the the the the thing thing thing thing is lost lost is is lost lost is without the fault of the debtor generic before the debtor has incurred in delay. specific The obligation is demandable on the date of the obligation and shall continue to be in force up to the arrival of the day certain: 50. A. B. C. D. Resolutory period Suspensive period Indefinite period Legal period ---GOD BLESS--- Strictly for BSA 1M, BSA 1O & BSAIS 1A only I. OBLIGATIONS: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. D D A A D A A A C B 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. A B D A D B A B D A 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. B B B C D D B B B D 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. A A A A A B C D A B 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. A C D A B C B C D B 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. C A D C A C A C B A 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. A D B D A C A D A B 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. C B C C D D A B C B 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. B D C C C B A C A D 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. A A B A D C A D A A A C A A C A A D D B 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. C B C C C B C B B A II. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. A C A B A C A A D C 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. A D A B B D A D C A 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. CONTRACTS: B D A C A A D B B C Strictly for BSA 1M, BSA 1O & BSAIS 1A only 31. 32. 33. 34. 35. 36. 37. 38. 39. 40.