EASY ROUND

1. SALES: It takes place whenever by a final judgment based on a right prior to the sale or an act
imputable to the vendor, the vendee is deprived of the whole or a part of the thing purchased.
Answer: Eviction (Art. 1548)

2. OBLIGATIONS: Delay in the fulfillment of an obligation, by reason of a cause imputable to the

creditor.
A) Mora solvendi C) Compensatio Morae
B) Mora Accipiendi D) Debtors default
Answer: B

3. PARTNERSHIP: Which of the following is not necessarily a particular partnership?

A) General Professional Partnership
B) Partnership which has for its object determinate things
C) Partnership at will
D) All of the following are particular partnerships
Answer: C

4. NEGOTIABLE INSTRUMENTS: All of the following are special type of promissory notes, except:
A) Certificate of Deposit C) Due Bills
B) Bank Notes D) Trade Acceptances
Answer: D

5. NEGOTIABLE INSTRUMENTS: It is the first delivery of a negotiable instrument, complete in form,

to a person who takes it as a holder.
Answer: Issue (Sec. 190)

6. OBLIGATIONS: Which of the following is a not a primary mode of extinguishment of obligations?

A) Remission C) Payment
B) Novation D) Prescription
Answer: D

7. CONTRACTS: This type of defective contract is valid and not actually defective but it causes injury or
loss to others.
A) Rescissible C) Unenforceable
B) Voidable D) Void
Answer: A

8. GUARANTY: A contract of guaranty has the following characteristics, except:

A) accessory C) unilateral
B) innominate D) subsidiary
Answer: B (Art. 2047)

9. CORPORATION: Which of the following statements is true about corporations?

A) De facto corporations have no juridical personalities
B) Corporations acquired by the government ceases to have juridical personality
C) Corporations may be organized for the exercise of profession
D) Corporations may exist indefinitely
Answer: D

10. CONTRACTS: Which of the following defective contracts only becomes enforceable when ratified?
A) Rescissible C) Unenforceable
B) Voidable D) Void
Answer: C

AVERAGE ROUND
1. OBLIGATIONS: Avedon made a negotiable promissory note in favor of Romel as he obtained a loan
from the latter in the amount of P500,000. Romel negotiated the promissory note to Gerome. Gerome
negotiated this to Riyah. Riyah further negotiated this to Avedon. At this point, Avedons debt is
extinguished. What mode of extinguishment of obligation is described from the preceding scenario?
 Answer: Confusion or Merger of Rights

2. SALES: Jervin is a very industrious child. At an early age of 13, he looks for ways to earn money to
support his siblings. One day, he sold his old laptop to a professional gamer named Avedon (age: 32).
How old are you little fella?, Avedon asked. I may not look like it, but Im already 18 sir, Jervin
replied dishonestly but confidently. Avedon paid and Jervin delivered the laptop to him. What is the
status of the contract of sale between Jervin and Avedon?
Answer: Valid (Comments under Art. 1489 Hector de Leon Sale by Minor)

3. PARTNERSHIP: The latin phrase delectus personae, in the legal term, means:
A) Choice of the person C) Choice of persons
B) Choice of the people D) Choice of the public
Answer: A

4. NEGOTIABLE INSTRUMENTS: Sidfrey, while holding hands with Romelita, was seen by Avedon.
Avedon got very jealous. Avedon blackmailed Sidfrey that he will expose the latters forbidden
relationship with Romelita to the public unless he comply with a certain condition. He demanded
Sidfrey to issue an order promissory note for an amount of P1,000,000 in his (Avedon) favor. Sidfrey
complied. Avedon negotiates the instrument to Jervin for value and in good faith. Jervin is not aware of
Avedons defective title. The following day, Jervin negotiates the instrument to Romel (Romelitas
father). Romel acquired the instrument for value and in good faith. However, Romel was aware of
Avedons defective title. When the instrument is due, Romel went to Sidfrey to collect. Sidfrey refused
to pay and in addition he showed proofs of Avedons defective title (though there is no need for proofs
since Romel already has the knowledge about Avedons defective title). Romel went to Jervin and told
him about the situation. Jervin got confused and, as of the moment, did nothing. Based on the
negotiable instruments law, which is the correct statement?
A) Jervin is presumed to be a holder in due course prior to his negotiation to Romel
B) Romel has no chance of acquiring the right of a holder in due course because of his knowledge
C) Romel has the right of a holder in due course because he acquired the instrument from a holder in
due course and he has nothing to do with the instrument being defective
D) Romel cannot collect from Sidfrey unless Jervin proves himself to be a holder in due course prior to
his negotiation to Romel of the instrument
Answer: D (Sec 59)

5. CONTRACTS: Avedon is a very talented e-sport athlete. Through hard-work and dedication, he
achieved a milestone that no professional player has ever done. This feat caught the attention of the
professional teams all around the world. One of them is Team Liquid who proposed a contract with
Avedon. The terms of the contract were already written in 10 pages of paper. Avedon only needs to read
and agree and sign to these terms and the contract will be perfected. What type of contract is best
described by the preceding scenario?
Answer: Contract of Adhesion

6. AGENCY: Civil Code Art. 1907. Should the commission agent receive on a sale, in addition to the
ordinary commission, another called a guarantee commission, he shall bear the risk of collection and
shall pay the principal the proceeds of the sale on the same agreed upon with the purchaser. What is
the other name for guarantee commission?
Answer: del credere commission

7. SALES: Match the proper rule for each schools of thought regarding contract of sale and contract for a
piece of work. Further indicate beside the letter of your answer the school of thought used in the
Philippines.
I. Transactions where goods sold are being manufactured in the normal course of business
regardless if it currently exist or not are covered by a contract of sale but if specifically
manufactured at the order of a buyer, they are covered by a contract for a piece of work.
II. Transactions where goods sold currently exist at the time the buyer orders are covered by a
contract of sale but if the goods dont exist at the time the buyer orders, regardless if the goods
are being manufactured in the normal course of business, they are covered by a contract for a
piece of work
III. Transactions where goods sold have greater value for its materials cost than of its labor cost are
covered by a contract of sale. On the other hand, if labor cost is of greater value than its
materials cost, they are covered by a contract for a piece of work.
A) I English Rule, II Massachusetts Rule, III New York Rule
 B) I Massachusetts Rule, II English Rule, III New York Rule
C) I Massachusetts Rule, II New York Rule, III English Rule
D) I English Rule, II New York Rule, III Massachusetts Rule
Answer: C Massachusetts Rule

DIFFICULT