PENFinalExam1415 1lLawonObligationsandContracts UPANG

UPANG - BAM 026 Page 1 of 20
School: UPANG
PEN Code: BAM 026
PEN Subject Title: Law on Obligations and Contracts
Directions: Please type your questions, choices and comments in the corresponding boxes.
Kindly follow the example below.
Example:
Item Questions and Answers Comments
Please type your question in the upper box followed by the choices Please type your
in the lower box. Do not forget to highlight the answer. comments here.
1. “Begin with the end in mind.” What is the implication of this
statement to the work of a teacher?
a. Come to class prepared for all eventualities.
b. Master the subject matter.
c. Understand the nature of each learner.
d. Define the lesson objective clearly.
Comments
Item Questions and Answers from AU and
UI
1. According to Article ______ of the Civil Code of the Philippines,
“An obligation is a juridical necessity to give, to do or not to do.
a. 1155
b. 1156
c. 1157
d. 1158
2. Obligation may arise from
a. Quasi-contacts, object, law, contracts and crimes

b. Quasi- delicts, prestation, law, contracts and quasi-contract
c. Law, quasi-delicts, contract, quasi-contracts and crimes
d. Contracts, crimes, cause, quasi-contracts and quasi-delicts
3. It is a wrong committed without any pre-existing relations between
the parties.
a. Natural obligation
b. Quasi-delict
c. Quasi-contract
d. Crime
4. It is the voluntary administration of the property of another without
his consent.
Property of PHINMA Education Network. No part of this document may be used, reproduced, redistributed, displayed
or transmitted without written consent from PHINMA Education Network.
a. Negotiorum gestio
b. Solutio indebiti
c. Quasi-delict
d. Contract
5. Obligations may arise from the following, except
a. Contracts
b. Quasi-contracts
c. Law
d. Negligence
6. It is a juridical relation resulting from lawful, voluntary and
unilateral acts by virtue of which the parties become bound to each
other to the end that no one will be unjustly enriched or benefited at
the expense of another.
a. Contracts
b. Quasi-contract
c. Law
d. Quasi-delict
7. A source of obligation not arising from law.
a. Negotiorum gestio a & b are

b. Solutio indebiti likewise
c. Culpa aquiliana sources of
d. Contract obligations not
arising from
law, they being
quasi-contracts
(another source
of obligation
other than law)
, while c is a
quasi-delict (
also another
source of
obligation other
than law)
UPANG:
According to
the the book of
De Leon, there
are only
sources of
obligation: Law
and Contracts,
because
obligations
arising from
quasi-contracts,
delicts and
quasi-delicts
are really
imposed by
law.
8. 1. Obligations arising from contracts have the force of law between

the contracting parties.
2. Obligations arising from contract are valid as long as it is not
contrary to law, morals, good customs, public order and public
policy.
a. Both statements are correct
b. Both statements are incorrect
c. Statement 1 is correct, statement 2 is incorrect
d. Statement 1 is incorrect, statement 2 is correct
9. Unless law or stipulation of the parties require another standard of
care, every person obliged to give something is also obliged to take
care of it with:
a. Extra-ordinary diligence
b. Diligence of a father of a good family
c. Diligence of a good father of a family
d. Good diligence of a father of a family.
10. Mel sold to Jay her car and promise to deliver the car to Jay on
January 30, 2014. On January 15, 2014, Mel sold the same car to
Patrick and Patrick immediately possessed the car. As of February 5,
2014, Jay has not received the car from Mel.
a. Jay can cancel the contract of sale between Mel and Patrick
because the contract of sale between him and Mel was
perfected first.
b. Mel cannot be considered in delay because there was no
demand yet from Jay.
c. Mel is already in delay, even if there was no demand from
Jay and she shall be liable for damages.
d. The sale is rescissible because of damage caused to Jay.
11. 1. If the obligation is a pure obligation or one whose performance is
not subject to a suspensive period or suspensive condition, the
obligation to deliver arises from perfection.
2. If the obligation is subject to a suspensive period or suspensive
condition, the obligation to deliver arises upon the arrival of a term
or the fulfillment of the condition.
12. Demand must be made on the due date of the obligation in order for
delay to exist in one of the following cases. Which is it?
a. When it was stipulated by the parties that demand need not be

made.
b. When the law provides that demand need not be made.
c. When the obligation does not indicate whether demand
must be made or not on due date.
d. When time is of the essence of the contract.
13. This refers to delay on the part of the creditor
a. Mora solvendi ex re
b. Compensatio morae
c. Mora solvendi ex personae
d. Mora accipiendi
14. A entered into a contract with B by which A promised to deliver at
price stipulated in the contract. Such delivery is to be made on
February 14, 2014 with penalty in case of default. In this case, no
further demand by B on A is necessary to consider A in delay
because:
a. Time is of the essence of the contract
b. The obligation expressly so provides
c. The demand would be useless
d. Answer not given.
15. X is obliged to give Y a specific car on July 15, 2014. X did not
deliver the car on July 15, 2014. On July 20, 2014, an earthquake
destroyed the building where the car was parked and the car was
destroyed. Is X still liable?
a. No. Considering that no demand to deliver was made by
Y and the specific thing was lost due to fortuitous event,
hence the obligation is extinguished.
b. No. The obligation is extinguished, even if the debtor is
already in default, because the debtor can plead impossibility
of performance.
c. Yes. X is already in legal delay, thus the obligation to deliver
the lost specified thing is converted into monetary claim for
damages.
d. Yes. The creditor can instead demand for a substitute of
equivalent value from the debtor.
16. Which of the following statements concerning delay is incorrect:
a. There is no delay in obligations not to do.

b. Delay, as a rule, exists, when the debtor does not perform
his obligation on the date it is due.
c. Demand, as a rule, is required, in order fro delay to exist.
d. When time is of the essence of the contract, delay on the part
of the debtor exists despite the absence of demand.
17. A brought her diamond ring to a jewelry shop for cleaning and the
latter undertook to return the ring by February 1, 2014. When the
said date arrived, the jewelry shop informed A that the job was not
yet finished and they asked A to return five days after. On February
6, 2014, A went to the shop to claim the ring but she was informed
that the same was stolen by a thief the night before. Decide.
a. The jewelry shop in not liable for the loss because it took
place due to the force majeure.
b. The jewelry shop is liable if it was so stipulated between the
parties.
c. The jewelry shop is liable for the loss despite the force
majeure because of delay.
d. The jewelry shop is not liable because there was no delay on
its part.
18. Liability for damages may arise from the following, except
a. Delay
b. Negligence
c. Contravention of the tenor of the obligation
d. Fortuitous event
19. No person shall be held liable by reaon of fortuitous event, except:
a. When time is of the essence of the contract

b. When demand would be useless
c. When the nature of the obligation requires the
assumption of risk
d. When the obligation is purely personal in nature
20. A bound himself to deliver a determinate horse to B on January 14,
2014. On January 16, 2014 the horse was stuck and killed by
lightning.
a. A is liable for loss of the horse because he was in delay

b. A has the obligation to replace the horse
c. A’s obligation is extinguished
d. B may claim damages from A.
21. There is no liability for loss due to fortuitous events in one of the
following cases. Which is it?
a. When the debtor delays

b. When the parties so stipulated that there shall be liability
even in case of loss due to fortuitous events.
c. When the nature of the obligation requires the assumption of
risks
d. When the obligation is to deliver a determinate thing and
there was no stipulation as to the liability of the debtor in
case of loss due to fortuitous events.
22. D is obliged to give C a specefic car if C passes the CPA board
examination. D’s obligation is an example of
a. A pure obligation
b. An obligation with a suspensive condition
c. An obligation with a resolutory condition
d. An obligation with a period
23. D is obliged to give C P10,000 if X dies. This is an example of
a. An obligation with a suspensive condition

b. An obligation with a resolutory condition
c. An obligation with a period
d. A pure obligation
24. The following obligations are divisible, except an obligation
a. To give definite things

b. Which has for its object the execution of a certain number of
days of work
c. Which has for its object the accomplishment of work by
metrical unit
d. Which by its nature is susceptible of partial performance
25. It refers to a joint obligation
a. One in which each debtor is liable for the entire obligation,

and each creditor is entitled to demand the whole obligation
b. One in which either one of the parties is indispensable and
the other is not necessary
c. One in which the obligation of one is a resolutory condition
of the other, the non-fulfillment of which entitles the other
party to rescind the contract
d. One in which each of the debtors is liable only for a
proportionate part of the debt and each creditor is
entitled only for a proportionate part of the credit
26. Dolores borrowed P15,000 from Consuelo. On due date, Dolores
was not able to pay but she promised to give Consuelo a specific
ring, a specific bracelet, or a specific necklace, in payment of the
debt. Consuelo accepted the offer of Dolores.
What kind of obligation is the new obligation of Dolores.
a. Facultative obligation
b. Compound obligation
c. Alternative obligation
d. Simple obligation
27. D borrowed P100,000 from C. The parties agreed at the time the
obligation was constituted that should D so desire, he may give his
agricultural land to C by way of dacion en pago to pay his loan
obligation on due date. The obligation of D to C is
a. A conjunctive obligation
b. A simple obligation
c. An alternative obligation
d. A facultative obligation
28. The following obligations are demandable at once, except
a. An obligation with a condition antecedent

b. An obligation without any term or condition
c. An obligation with an in diem period
d. An obligation with a condition not to do an impossible thing
29. 1. Several prestations are due but all must be performed to extinguish
the obligation.
2. If there are void prestations, the other prestations may still be
valid; hence, the obligation remains.
In your evaluation of the foregoing statements:

a. Both statements refer to an alternative obligation
b. Neither statement refers to an alternative obligation
c. Only statement 1 refers to an alternative obligation
d. Only statement 2 refers to an alternative obligation
30. Consider the following statements:
1. The nullity of the principal obligation carries with it the nullity of
the penal clause
2. The nullity of the principal obligation does not carry with it the
nullity of the penal clause
3. The nullity of the penal clause carries with it the nullity of the
principal obligation
4. The nullity of the penal clause does not carry with it the nullity of
the principal obligation
a. Statements 1 and 3 are true

b. Statements 1 and 4 are true
c. Statements 2 and 3 are true
d. Statements 2 and 4 are true
31. In obligations with a penal clause, the creditor as a rule may recover
from the debtor in case of breach the following:
a. The penalty as agreed upon, plus damages and interest

b. The penalty and damages
c. The penalty and interest
d. The penalty only
32. One of the following obligations is not immediately demandable
a. Pure obligation
b. Obligation with a resolutory condition
c. Obligation with an in diem period
d. Obligation with an ex die period
33. 1. Pure obligation is immediately demandable.
2. Conditional obligation is immediately demandable.

34. 1. If the thing is improved at the expense of the debtor before the
fulfillment of suspensive condition, the debtor may demand
reimbursement of such expense from the creditor.
2. In an obligation to give a determinate thing which is subject to a
suspensive condition, the deterioration of the thing without the
debtor’s fault shall render the debtor liable for damages.

35. If the thing which is the object of the obligation is improved by
nature or by time, such improvement shall inure to the benefit of the:
a. Debtor
b. Creditor
c. Either a or b
d. Neither a nor b
36. 1. If the thing which is the object of the obligation is lost without the
fault of the debtor, the obligation is extinguished.
2. If the thing is lost through debtor’s fault, the obligation is
extinguished.
37. If the thing which is the object of the obligation deteriorates without
the fault of the debtor during the pendency of the condition, such
impairment shall be borne by:
a. Debtor
b. Creditor
c. Either a or b
d. Neither a nor b
38. If the thing which is the object of the obligation deteriorates with the
fault of the debtor during the pendency of the condition, the creditor
may choose:
a. Rescission, plus damages

b. Fulfillment, plus damages
c. Either (a) or (b)
d. Neither (a) nor (b)
39. D is obliged to give his violin to C if C finishes his course in music.
If the quality of the tone produced by the violin had improved
between the time that D’s obligation was constituted and the
completion by C of his course in music, then such improvement shall
inure to the benefit of:
a. C
b. D
c. Either (a) or (b)
d. Neither (a) nor (b)
40. One of the distinctions between a facultative obligation and an
alternative obligation is that in an alternative obligation:
a. Only one thing is principally due.

b. The right of choice belongs to the debtor alone.
c. If the obligation to give a principal thing is void, the
obligation to give the substitute is also void.
d. If all prestations except one are impossible, that which is
possible must still be given.
41. The offer made by the debtor to pay his obligation to his creditor is
known as:
a. Consignation
b. Tender of payment
c. Application of payment
d. Dation in payment
42. M owes P10,000. The obligation is evidenced by a promissory note.
Subsequently, P assigned the note to A, A to B, B to C and C back to
M. The obligation of M is extinguished by:
a. Compensation
b. Confusion
c. Condonation
d. The obligation is not extinguished because there was no
payment.
43. D borrowed P50,000 from C. Subsequently, D proposed to C that T
would assume his (D’s) debt. C accepted the proposal of D. This
substitution of debtor is known as:
a. Expromision
b. Delegacion
c. Tradition
d. Dacion en pago
44. The passage of time as mode of acquiring or losing a right including
the extinguishment of an obligation is called:
a. Remission
b. Novation
c. Prescription
d. Merger
45. Legal compensation shall not be proper in three of the following
cases. Which is the exception?
a. Commodatum
b. Civil liability from a criminal offense
c. Gratuitous support
d. Bank deposit
46. D bought a plane ticket for Hong Kong from Wings Travel
Company. Later, however, D cancelled his flight to Hong Kong
because of the SARS epidemic in the place. Upon being informed of
the cancellation, Wings Travel told D that D could get the refund if
his plane ticket within two days. In the meantime, D thought of
going instead to Australia so he called Wings Travel to send to him a
ticket for Brisbane promising to pay the cost of the ticket in two
days. Assuming that the refund due to D for his unused plane ticket
to Hong Kong is of the same amount as the cost of his plane ticket to
Australia. D two days later need not pay Wings Travel by reason of:
a. Confusion
b. Novation
c. Compensation
d. Condonation
47. The delivery to the creditor of mercantile documents such as checks
shall produce the effect of payment:
a. Upon delivery
b. When they have been cashed
c. When through the fault of the debtor they have been impaired
d. When they are deposited in the bank
48. D owes C the following debts: P4,000 due on May 1; P4,000 due on
May 8; P4,000 due on May 15; P4,000 due on May 22; P4,000 due
on May 29; and P4,000 due on June 5. The debts represented the
price of magazines which were delivered to D on a weekly basis. Of
the 6 debts, the one due on May 22 is secured by a pledge of D’s
ring. By agreement of the parties, C may demand payment even
before the due date of the debt. As of May 31, D had not paid any of
the 6 debts. On May 31, D wanted to make payment but he had only
P4,000.
a. D may apply the payment to the debt due on June 5.
b. D must apply the payment proportionately to the 5 debts that
have become due as of May 31 at P800 each.
c. D may apply the payment to the debt due on May 22
which is the most burdensome to him.
d. D must apply the payment to all the debts proportionately at
P666.67 each
49. Refer to No. 48. Assuming that D did not designate the debt to be
paid when he remitted the amount of P4,000 to C on May 31. C
issued a receipt for the payment he received from D but he did not
also designate the debt that was being paid. In this case:
a. The payment shall be applied proportionately to the debts that
have become due as of May 31 at P800 each.
b. The payment shall be applied to the debt due on May 22
since it is the debt that is most onerous to D.
c. The payment shall be applied to all the debts proportionately
at P666.67 each
d. The payment shall not be applied to any debt because there
was no designation by the parties.
50. D borrowed P5,000 from C. The obligation is payable in full after 30
days. In which of the following cases is D justified in making a
consignation of his payment in court?
a. If C refuses to accept the payment in the form of a check

which is certified by the bank to be supported by sufficient
funds.
b. If C refuses to accept the payment consisting of P5,000
pieces of P1.00 coins.
c. If C refuses to accept the first installment payment in the
form of a P1,000 bill, D promising to pay the balance of the
debt in 4 equal monthly installments.

d. If C refuses to accept the payment consisting of 250 pieces
of P20.00 bills.
51. M executed a promissory note payable to P for P100,000. The note,

which bears interest at 2% per month, is payable after 60days. On the
date of maturity, P proceeded to M’s place to collect but when M
demanded the presentation of the promissory note, P could not
present it claiming that it had been lost. M is able and willing to pay
the whole amount due including the interest but he is at a loss on
what to do because P does not have the instrument. On the other
hand, if he does not pay the amount due, the interest on the principal
will continue to accrue. If you were M, the remedy that you will
likely avail yourself of is:
a. Dacion en pago
b. Payment by cession
c. Consignation
d. Application of payment
52. Devera obtained a loan P50,000 from Centeno who is engaged in the
business of financing. The written contract of the parties provides
that the loan shall bear interest of 12% per annum and shall be paid
in full together with the interest at the end of 12 months at Centeno’s
business office. One due date, Devera proceeded to Centeno’s
business office to pay his debt but the place was padlocked and
showed no signs that it had been occupied for some time. Devera is
now at a loss on what to do as Centeno did not forward his present
address to him. Devera does not want to have any outstanding
obligation at the end of the year and incur further interest. Which
course of action will you recommend to Devera?
a. Tender of payment
b. Compensation
d. Consignation
53. When two persons are claiming the same right to collect from you
and you are in doubt as to whom you will give your payment, your
remedy so that you will not pay to the wrong person is:
a. Consignation
b. Tender of payment
d. Dacion en pago
54. D obtained a loan of P5,000 from C. On due date, D tendered
payment amounting to P5,000 consisting of P5,000 pieces of P1.00
coin.
a. The payment offered by D is legal tender

b. C may not refuse to accept the payment
c. Should C refuse to accept the payment, D may resort to
consignation.
d. C may demand that he be paid in bills.
55. D owes C P50,000. Subsequently, D proposed to C that T will
assume (D’s) debt. C accepted the proposal of D. This type of
novation which involves the substitution of the debtor is known as:
a. Delegacion
b. Expromission
c. Objective novation
d. Subrogation
56. It transfers to the person taking the place of the creditor all the night
pertaining to the credit, either against the debtor or against third
person, be they guarantors or possessors of mortgages:
a. Substitution
b. Subrogation
c. Transfiguration
d. Transformation
57. 1. Novation may take place by changing the object or principal
conditions of the obligation.
2. If the old obligation is void, the novation will still be valid if the
new obligation is valid.
58. A meeting of minds between two persons whereby one binds himself
with respect to the other to give something or to render some service
is known as
a. Obligation
b. Consent
c. Contract
d. Stipulation
59. One of the following is not capable of giving his consent
a. Insane persons
b. Deaf-mute who do not knows how to write
c. Deaf-mute who knows how to read
d. Unemancipated minors
60. Contracts entered into in a state of drunkenness or during hypnotic
spell are:
a. Voidable
b. Valid
c. Rescissible
d. Void
61. A contract entered into by an insane person during a lucid interval is:
a. Valid
b. Voidable
c. Rescissible
d. Void
62. On May 1, 2014, S offered to sell a specific car to B for P500,000. B

sent his letter of acceptance to S on May 8, 2014. On May 10, 2014,
however, S died in a vehicular accident and his secretary received the
letter of acceptance on May 12, 2014 unaware that S had already
died.
a. The contract was perfected on May 8, 2014 when B sent his
letter of acceptance.
b. The contract was perfected on May 12, 2014 when the
secretary of S received the letter of acceptance.
c. The contract was not perfected because the offer of S
became ineffective when he died.
d. The contract was perfected on May 1, 2014 because the
acceptance made by B on May 8, 2014 retroacts to the date of
the offer.
63. One of the following is not a requisite of the object of the ocntract.
a. It must be within the commerce of men.

b. If it is a right, it must be transmissible.
c. It must not be contrary to law, morals, good customs, public
order or public policy.
d. It must be determinate as to its kind or capable of being made
determinate without the need of the parties entering into new
agreement.
64. One of the following is not a requisite of cause in a contract. Which
is it?
a. It must exist
b. It must be lawful
c. It must not be false
d. It must be clearly stated in the contract
65. The cause of a contract differs from the motive of each party to the
contract in that, motive:
a. Is an essential element of a contract

b. Although illegal, does not affect the validity of the
contract
c. Is always known by the other party
d. When illegal will render the contract void
66. It is the manifestation of the meeting of the offer and the acceptance
upon the thing and the cause which are to constitute the contract.
a. Consideration
b. Contract
c. Consent
d. Cause
67. Under the Statute of Frauds, certain contracts must be in writing to
be enforceable. One of the following contracts is enforceable
although not in writing. Which is it?
a. Sale of movables at a price of not less than P500.00.

b. A representation as to the credit of a third person.
c. An agreement made in consideration of marriage other than
mutual promise to marry.
d. An agreement for the leasing for a longer period than one
year of a personal property.
68. The Statute of Frauds applies only to:
a. Wholly executed contracts.

b. Contracts wholly or partially executed on the part of the
debtor.
c. Contracts wholly or partially executed on the part of the
creditor.
d. Wholly executory contracts.
69. Which of the following must be in writing to be enforceable as
required by the Statute of Frauds?
a. A subscription for 100 shares of stocks of a corporation at

P100.00 per share.
b. A contract for the construction of a building scheduled to
begin 3 months after the execution of the contract.
c. A contract for the lease of an agricultural lot for a period of 8
months.
d. A contract whereby one agrees to pay another’s debt if
the latter defaults in his payment.
70. Which of the following contracts involving real property is valid and
enforceable although not in writing?
a. Sale of a piece of land for P50,000.

b. Lease of an agricultural lot for a period of 2 years at a
monthly rental of P3,000.
c. Mortgage of a commercial lot to secure a loan of P50,000.
d. Donation and acceptance of a residential lot.
71. Reformation of instruments has the following requisites, except;
a. There must be a meeting of minds of the parties to the

contract.
b. The true intention of the parties is not expressed in the
instrument.
c. The failure of the instrument to express the true intention of
the parties is due to mistake, fraud, inequitable conduct or
accident.
d. The contract must be in a public instrument.
72. S sold his lot consisting of 1,000 square meters to B. However, the
deed of sale signed by the parties showed a total area of 1,200 square
meters due to the secretary’s mistake. Later, S discovered the
mistake. What remedy is available to either party?
a. Annulment
b. Reformation
c. Rescission
d. Declaration of nullity of the contract.
73. Reformation of an instrument is available in the following cases,
except;
a. When the mutual mistake of the parties causes the failure of

the instrument to disclose their agreement.
b. When one party was mistaken and the other party acted
fraudulently or inequitably in such a way that the instrument
does not show their true intention.
c. When a party was mistaken and the other knew or believed
that the instrument did not state their real agreement.
d. When one of the parties has brought an action to enforce
the contract.
74. 1. Mutual error as to the legal effect of an agreement when the
purpose of the parties is frustrated may result in the reformation of
the instrument.
2. Mutual mistake of the parties and the instrument does not express
the true agreement will make the ocntract voidable.
75. Reformation is not available in the following cases, except;
a. Simple donations, inter vivos wherein no condition is

imposed.
b. Wills
c. When the real agreement is void.
d. When through the ignorance, lack 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 intention of the parties.
76. A and B agreed on a contract of pledge. However, they entered into a
ocntract of mortgage in the honest belief that the mortgage and
pledge are the same. Can the instrument be reformed?
a. No, the document cannot be reformed since the contract is

void.
b. No, it cannot be changed. They are bound by the document
which speaks for itself.
c. Yes, it can be reformed because it does not express the true
agreement of the parties.
d. No, it cannot be reformed because there was no meeting
of minds between the parties and the remedy is
annulment of contract.
77. 1. If the words of the contract are clear and leave no doubt on the
intention of the parties, interpretation of contracts may be proper.
2. In case of gratuitous contracts, doubt shall be resolved in favor of
greatest reciprocity of interest.

78. A and B entered into a contract of mortgage. However, as written
document states it is a contract of sale with right of repurchase, the
error due to the fault of the clerk/typist.
Hence:
a. The contract of sale must be annulled since it is voidable.
b. The instrument has to be enforced as is for it is the proof of
the agreement between the parties.
c. Because of the negligence of the parties in signing without
first reading the instrument, they are bound by the contents of
the same.
d. The instrument may be reformed because it does not
express the true agreement of the parties.
79. The following contracts are rescissible contracts, except;
a. They may be set aside for equitable reasons

b. They are valid until rescinded
c. The action to rescind them prescribes
d. The action to rescind them are not available to third
persons even if their interest are directly affected.
80. The following are the requisites of a rescissible payment, except
a. The debt is already due

b. The debtor is insolvent
c. The debtor pays the debt
d. The payment is not yet due
81. G, the guardian of M, a minor, sold the fish harvested from the
fishpond of M for P7,400. The fish, however, had a value of
P10,000.
a. The sale is rescissible because M suffered lesion by more

than one-fourth of the value of the fish sold.
b. The sale is unenforceable because G sold the fish without
approval of the courts.
c. The sale is voidable because M is a minor.
d. The sale is void because the object is outside the commerce
of men.
82. Rescission of a contract will prosper in one of the following cases.
Which is it?
a. When there are other legal means to obtain reparation of the

damages.
b. When he who demands rescission cannot return whatever he
may be obliged to restore.
c. When the object of the contract is in the possession of a
third person who purchased the property of the debtor in
bad faith.
d. When the action to bring rescission has prescribed.
83. The following contracts are rescissible, except:
a. Those entered into by guardians whenever the wards whom

they represent suffer lesion by more than one-fourth of the
value of the thing which are the object of the contract.
b. Those entered into in representation of absentees, if the latter
suffer lesion by more than one-fourth of the value of the
things which are the object on the contract.
c. Those undertaken in fraud of creditors but the latter can
still collect the claims due them through other means.
d. Those entered into by the defendant without the knowledge
and approval of the litigants or of competent judicial
authority.
84. R, the representative of A, an absentee, sold the corn with a value of
P30,000 and the palay with a value of P50,000, harvested from A’s
agricultural farm for a total price of P50,000. A, whose domicile was
subsequently known, was informed of the sale made by G. Based on
the foregoing facts, which of the following statements is incorrect?
a. A may seek payment of an additional P30,000 to recover the
damages suffered.
b. A may just seek rescission of the sale of the corn to recover
the damages he suffered.
c. A may seek rescission of the sale of part of the corn and part
of the rice to the extent of the damages he sustained.
d. A may seek the rescission of the total sale to recover the
damages de suffered.
85. 1. Rescission of a contract shall be only to the extent necessary to
cover the damages caused.
2. The action for rescission must be commenced within three years.

86. One of the following may not annul a voidable contract:
a. The party whose consent is vitiated by violence, intimidation,

mistake, fraud or undue influence.
b. The incapacitated person when he attains capacity.
c. The guardian, during the ward;s incapacity.
d. The party who is capable of entring into a contract.
87. The following ocntracts are voidable, except:
a. Contracts entered into during a state of drunkenness or

hypnotic spell.
b. Contracts entered into during a lucid interval.
c. Contracts where one of the parties is incapable of giving
consent.
d. Contracts where the consent of one party is vitiated by
violence, intimidation, mistake, fraud or undue influence.
88. The action for annulment must be brought within four years. Which
of the following is false with respect to the reckoning of the
beginning of the prescriptive period?
a. In cases of intimidation, violence and undue influence, the

period begins from the time the defect in the consent ceases.
b. In case of fraud, the period begins to run from the discover
thereof.
c. In case of mistake, the period begins to run from the time
it was committed.
d. In cases of contracts entered into by minors or other
incapacitated persons, the period runs from the time
guardianship ceases.
89. One of the following statements concerning ratification of a voidable
contract is false. Which is it?
a. Ratification extinguishes the action to annul a voidable

contract.
b. Ratification cleanses the contract from all its defects from the
moment it was constituted.
c. Ratification requires the conformity of the party who has
no right to bring the action for annulment.
d. Ratification may be made by the guardian of the
incapacitated person, or the incapacitated person upon
attaining capacity, or the party whose consent was vitiated.
90. On January 20, 2014 A and B agreed verbally to form a partnership
on January 25, 2016.
a. The contract is void because future property cant’s be

contributed to a universal partnership of all present property.
b. It is voidable if the parties marry each other before they form
the partnership.
c. Unenforceable because it is not in writing.
d. Void because there is no public instrument of their
agreement.
91. The following contracts are unenforceable, except:
a. Those entered into by one who has no authority or legal

representation
b. Those that do not comply with the Statute of Frauds
c. Those where both parties are incapable of giving consent to a
contract
d. Those where the consent of a party is vitiated by violence,
intimidation, mistake, fraud or undue influence.
92. If the doubts are cast upon the principal object of the contract in such
a way that it cannot be known what may have been the intention or
will of the parties. The contract shall be:
a. Voidable due to lack of meeting of minds

b. Void
c. Interpreted for there is doubt
d. Reformed to express the true intention of the parties
93. While his father was still alive, A sold to B the property he (A)
expected to receive from his father. Is the contract defective?
a. It is completely valid contract because the seller is

compulsory heir.
b. It is valid for there can be sale of future things and what A
sold is future property.
c. It is voidable sale if he fails to receive the property he
expected to receive from his father.
d. It is void for future inheritance cannot be sold.
94. A promised to give B a car as a reward after B has killed C. Later,
after the killing, the contract was changed to a lease of a big house
for a certain period.
a. Void
b. Unenforceable
c. Voidable
d. Rescissible
95. Which of the following statements is true as regards a void contract?
a. A void contract is ratified by the acceptance by a party to the

contract of a benefit under its terms.
b. The right to set up the defense of illegality of a void contract
may be waived if the illegality is not raised within a
reasonable time.
c. If there is a novation of a void contract, such novation is valid
provided the new contract is valid.
d. The right to set up the defense of illegality of a void
contract does not prescribe.
96. S and B entered into a contract whereby S sold his car to B for
P100,000. Dased on the foregoing, which of the following statement
is incorrect?
a. The contract is voidable if S is 17 years old, and B is 25 years

old.
b. The contract is unenforceable if S is 17 and B is insane.
c. The contract is void if B, 25 years old, compelled S, 30
years old, to sign the deed of sale by threatening to burn
the house of S.
d. The contract is rescissible if at the time of the sale, the car
was the subject of litigation brought by X against S to recover
the car, and the court and X did not give their authority to the
sale.
97. Which of the following contracts is void?
a. A contract of barter between S, insane, and B, 17 years old.

b. A contract of sale where B, the buyer, twisted the arm of S,
the seller, so that S would sign the deed of sale.
c. A contract of sale where B, the buyer, aimed a gun at the wife
of S, so that S would sign the deed of sale.
d. A contract for the sale of a cow which is suffering from a
contagious disease.
98. B bought a baby boy from S. B knew that the bay boy was his
illegitimate son by a woman named, W, and which W sold to S. The
contract between B and S is:
a. Valid
b. Void
c. Unenforceable
d. Voidable
99. 1. A natural obligation cannot be enforced in a court of justice.
2. Natural obligations are based on positive law

100. A bar which precludes a person from denying or asserting anything
to the contrary of that which has, in contemplation of law, been
established as the truth, either by the acts judicial or legislative
officers or by his own deed or representation, either express or
implied.
a. Laches
b. Estoppel
c. Trust
d. Prescription
- - - End - - -

PENFinalExam1415 1lLawonObligationsandContracts UPANG

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

PENFinalExam1415 1lLawonObligationsandContracts UPANG

Загружено:

Авторское право:

Доступные форматы

UPANG - BAM 026 Page 1 of 20

Item Questions and Answers Comments

a. Quasi-contacts, object, law, contracts and crimes

a. Negotiorum gestio a & b are

8. 1. Obligations arising from contracts have the force of law between

a. When it was stipulated by the parties that demand need not be

13. This refers to delay on the part of the creditor

a. There is no delay in obligations not to do.

a. When time is of the essence of the contract

a. A is liable for loss of the horse because he was in delay

a. When the debtor delays

a. An obligation with a suspensive condition

a. To give definite things

a. One in which each debtor is liable for the entire obligation,

What kind of obligation is the new obligation of Dolores.

a. An obligation with a condition antecedent

In your evaluation of the foregoing statements:

a. Statements 1 and 3 are true

a. The penalty as agreed upon, plus damages and interest

a. Both statements are correct

a. Both statements are correct

a. Rescission, plus damages

a. Only one thing is principally due.

possible must still be given.

a. If C refuses to accept the payment in the form of a check

debt in 4 equal monthly installments.

51. M executed a promissory note payable to P for P100,000. The note,

a. The payment offered by D is legal tender

62. On May 1, 2014, S offered to sell a specific car to B for P500,000. B

a. It must be within the commerce of men.

a. Is an essential element of a contract

a. Sale of movables at a price of not less than P500.00.

a. Wholly executed contracts.

a. A subscription for 100 shares of stocks of a corporation at

a. Sale of a piece of land for P50,000.

a. There must be a meeting of minds of the parties to the

a. When the mutual mistake of the parties causes the failure of

a. Simple donations, inter vivos wherein no condition is

a. No, the document cannot be reformed since the contract is

a. Both statements are correct

a. They may be set aside for equitable reasons

a. The debt is already due

a. The sale is rescissible because M suffered lesion by more

a. When there are other legal means to obtain reparation of the

d. When the action to bring rescission has prescribed.

83. The following contracts are rescissible, except:

a. Those entered into by guardians whenever the wards whom

a. Both statements are correct

a. The party whose consent is vitiated by violence, intimidation,

a. Contracts entered into during a state of drunkenness or

a. In cases of intimidation, violence and undue influence, the

a. Ratification extinguishes the action to annul a voidable

a. The contract is void because future property cant’s be

a. Those entered into by one who has no authority or legal

a. Voidable due to lack of meeting of minds

a. It is completely valid contract because the seller is

a. A void contract is ratified by the acceptance by a party to the

a. The contract is voidable if S is 17 years old, and B is 25 years

97. Which of the following contracts is void?

a. A contract of barter between S, insane, and B, 17 years old.

a. Both statements are correct

Вам также может понравиться