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The
Main: 3F C. Villaroman Bldg. 873 P. Campa St. cor Espana, Sampaloc, Manila
(02) 735 8901 / 735 9031 / 0922 861 0191
email add: crc_ace@yahoo.com
Baguio Davao
Rudel Bldg. V, Lower Mabini cor Diego Silang, Baguio City 3/F GCAM Bldg. Monteverde St. Davao City
(074) 442-1440 / 0922-8499196 (082) 285-8805 / 0925-7272223
AVERAGE
1. A negotiable instrument that is not dated will be considered dated as at the time of
a. Acceptance c. Last endorsement
b. First endorsement d. Issuance
2. A delinquent stockholder is not entitled to the following rights, except the right:
a. To be voted
b. To vote or be represented in the meetings of stockholders
c. To dividends
d. He is not entitled to all the rights of a stockholder
3. Three of the following partnership contracts are void. Which one is not?
a
A universal partnership of present property between husband and wife
.
b A universal partnership of profits between a man and a woman living together as
. husband and wife without the benefit of marriage
c. A particular partnership between husband and wife
d
A universal partnership between a private individual and a public officer
.
4. Three of the following instances will render an offer ineffective before acceptance is conveyed. Which one
will not?
a. Civil interdiction of either party c. Insanity of either party
b. Insolvency of either party d. Intoxication of either party
5. Payment made to a third person is valid to extinguish the obligation of the debtor to the creditor in the
following cases, except:
a. After payment to the creditor, the third person acquires the creditor’s right.
b. When the creditor ratifies the payment to the third person.
c. When through the creditor’s conduct, the debtor was led to believe that the third
person had authority to receive payment.
d. When the third person is subrogated to the rights of the creditor.
6. N, R and J solidarily bound themselves to deliver to S a Honda motorcycle valued at P 60,000. The
obligation was not fulfilled through the fault of J. Thereupon, S filed an action in court against N and the
court awarded P 72,000 to S representing the value of the motorcycle plus damages. Which of the
following situation is valid?
a. If N pays S the P 72,000, N can collect R and J P 24,000 each
b. S has to collect P 24,000 each from N, R and J to satisfy the court’s award of P 72,000
c. N can refuse to pay the penalty because it should be charged against J, the guilty party
d. If S succeeds in collecting the P 72,000 from N, N in turn can collect from R P 20,000 and from
J P 32,000
7. P authorized A, a minor, to sell his car for P 1,000,000 in cash. A sold the said car to X on installment at
a lesser price of P 900,000. P is now repudiating the contact with X on the ground that he is not bound
to since X contracted with a minor who exceeded his authority. Decide.
a. P is liable under the contract because it is enough that the principal is capacitated
since he is the one entering into the contract.
b. P is not liable for the sale on installments since it is unenforceable because his
agent acted beyond his powers.
c. P is not liable because the agent is a minor with whom X contracted
d. P is liable provided the sale is in cash for P 1,000,000.
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8. A gets a loan of P 1,000,000 from B which becomes due on October 1, 2018 and mortgaged his house
as security for the debt. On June 30, 2018, the mortgaged house completely destroyed the fire through
the fault of C. A week later, B demanded payment from A. Is B’s demand valid?
a. No, the destruction of the house was not thru the fault of A.
b. No, the obligation is one with a definite period which is deemed intended for the benefit of
both the debtor and creditor
c. Yes, the debt becomes demandable unless A can give another security equally satisfactory
d. Yes, the debt becomes demandable even if A can give another security equally satisfactory
9. One of the following characteristics of dacion en pago is also a characteristic of a contract of sale.
Which is it?
a
There is a pre-existing credit
.
b
Obligations are extinguished
.
c. There is less freedom in fixing the price
d
Ownership of the object transferred to the other party
.
10. An obligation where various prestations are due but the performance of all of them is required in order to
extinguish the obligation is known as:
a. Alternative obligation c. Conjunctive obligation
b. Facultative obligation d. Simple obligation
11. It is an affirmation of fact or any promise by the seller relating to the thing which has a natural tendency
to induce the buyer to purchase the same, relying on such promise or affirmation.
a. Condition c. Warranty
b. False representation d. Seller’s talk
14. Who among the following is the holder of a negotiable instrument originally payable to order?
a. The original payee who has negotiated the instrument
b. The endorsee who is in possession of the instrument
c. The possessor of the instrument to whom the instrument was delivered without any
endorsement
d. The endorsee who has negotiated the instrument
15. An instrument payable to bearer may be negotiated through any of the following means, except:
a
Special endorsement plus delivery
.
b
Mere delivery
.
c. Blank endorsement plus delivery
d
No delivery is required as long as there is an endorsement, whether blank or special
.
END OF EXAMINATIONS
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INSTRUCTIONS: Select the correct answer for each of the following questions. Mark only one answer for
each item by shading the corresponding letter of your choice on the answer sheet provided. STRICTLY NO
ERASURES ALLOWED. Use Pencil No. 2 only.
2. Like incapacity, force or violence, the following cause vitiate consent or render it defective so as to
make the contract voidable except:
A. Reverential fear C. Undue influence
B. Threat D. Fraud
3. The essential or more proximate purpose which the contracting parties have in view at the time of
entering into the contract is:
a. object b. motive c. cause d. consideration
4. One which is perfected by the delivery of the thing which is the subject matter of the contract:
a. Contract c. Real contract
b. Rescissible contract d. None of the above
6. Although validly agreed upon,courts can nullify this contract because of damage to one of the parties
or to a third person and its enforcement may cause injustice by reason of some external facts
a. Rescissible contracts c. Unenforceable contract
b. Voidable contract d. Void contract
7. Andoy intimidated Buboy to marry Andoy’s daughter. After a year Buboy would like to file an action for
annulment but could not do so because Andoy was around to intimidate him. The marriage contract is:
a. Void b. Rescissible c. Unenforceable d. Voidable
9. Gracia owes Rey P100,000. Gracia knows that on maturity date, she will not be able to pay Rey, and
in order to prevent attachment of her property by Rey, Gracia, before maturity of her debt, executed a
contract pretending to sell to Sam her property. Which of the following statements is not correct?
a. The contract is not valid for lack of consideration.
b. The contract is binding between Gracia and Sam.
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10. When the parties do not intend to be bound at all by their agreement, the contract is
a. Apparent contract c. Assignment
b. Absolutely simulated d. Relatively simulated
14. The process of intentionally deceiving others by producing the appearance of a contract which is
different from the true agreement
a. Absolute simulation c. Fraud
b. Relative simulation d. Misrepresentation
15. When in order to wrest consent, serious or irresistible force is employed there is:
a. Violence c. Intimidation
b. Mistake d. Fraud
17. The expenses of consignation when properly made, shall be charged against the
A. parties C. government
B. obligor D. obligee
18. The act of offering the creditor what is due him together with a demand that the creditor accept the
same
A. accionpaulina C. consignation
B. tender of payment D. application
20. 1st Statement – The voluntary acceptance by the creditor of a certified cashier’s check produces
payment of the debtor’s obligation.
2nd Statement – Unless the application of payment is expressly stated, the payment shall be applied to
the obligation most onerous to the creditor.
A. False, false C. True, true
B. True, false D. False, true
21. Amy uses a savings account with BDO Bank. The contract between Amy and the bank is:
A. Agency C. Deposit.
B. Commodatum. D. Mutuum.
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24. 1st Statement- Third persons will not be bound by the contract of pledge in the absence of public
instruments as evidence of the existence of the contract
2 nd Statement - The creditor can appropriate the things given by way of pledge or mortgage, without
any express stipulation.
A. TRUE, TRUE C. FALSE, TRUE
B. TRUE, FALSE D. FALSE, FALSE
25. Pledge and mortgage are accessory contracts. Which of the following statements is false?
A. They are meant to secure the fulfillment of a principal obligation.
B. They cannot exist if the principal obligation is void.
C. They can exist by themselves.
D. They can secure fulfillment of rescissible obligation.
26. The following are characteristics of a contract of real mortgage except one:
A. it is a real right C. it is indivisible
B. it can secure all kinds of obligation D. it is principal contract
27. A contract of mortgage involving an immovable property extends to the following except:
A. Future properties of the mortgagor
B. Natural accessions of the property mortgaged
C. Improvements on the property mortgaged
D. Rents or income of the property mortgaged not yet received when the obligation becomes due.
29. If the proceeds of the sale of the thing pledged sold at public auction is less than the principal
obligation, can the creditor recover the deficiency from the debtor?
1st ANSWER: Yes, the creditor is entitled to recover the deficiency form the debtor.
2nd ANSWER: No, unless there is a stipulation to that effect in the contract of pledge.
A. 1st answer correct, 2nd answer wrong C. Both answers are wrong
B. Both answers are correct D. 1st answer wrong, 2nd answer correct
30. In real mortgage, the following rules are valid, except one:
A. A stipulation in the mortgage contract prohibiting the owner from alienating the immovable
mortgaged is valid.
B. The mortgagee may alienate the mortgage credit or assign to a third person in whole or in part.
C. Any stipulation allowing the mortgagee creditor to appropriate the property mortgaged is null and
void.
D. If alienation of mortgage credit is not registered, it is still valid between the parties.
31. Which of the following is common requisite for Pledge, Chattel, Mortgage and antichresis?
A. The amount of principal and interest must be in writing.
B. The property must be in the possession of the creditor.
C. To bind third person they must be duly recorded in the office of the Register of Deeds.
D. It is constituted to secure the fulfillment of a principal obligation.
32. Three of the following are essential requisites of a contract of mortgage. Which one is not?
A. The person instituting the mortgage has the free disposal of his property.
B. The contract must be in writing.
C. The mortgagor is the absolute owner of the thing mortgaged.
D. The mortgage is constituted to secure the fulfillment of a principal obligation.
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33. Tom pledged his gold bracelet to Hector to secure a P15,000 loan. On due date, Tom failed to redeem
his bracelet. Hector sold the bracelet at a public auction to the highest bidder at P14,000. In this case:
A. Hector can recover the deficiency of P 1,000 unless stipulated that he cannot
B. Hector cannot recover the deficiency of P1,000 unless there is a stipulation
C. Hector cannot recover the deficiency of P1,000 even if there is a stipulation
D. Hector can recover the deficiency of P1,000 even without the stipulation
34. Possession of the thing pledged must be placed in the hands of:
A. Pledgee C. Third person
B. Depositary D. Pledgor
35. Which of the following is not the subject matter of a chattel mortgage?
A. Vehicles C. Jewelry
B. Vessels D. Buildings
36. Paolo pledged his Toyota car to Ronald for P100,000. Paolo was unable to pay the obligation two
months after the obligation became due and demandable. Therefore, Ronald sold the car at public
auction for P80,000. Can Ronald recover the deficiency of P20,000?
1st ANSWER - No, he cannot recover the deficiency unless there is a stipulation that he can.
2nd ANSWER- Yes, he can recover the deficiency even without stipulation.
A. 1st answer correct, 2nd answer wrong C. Both answers are wrong
B. Both answers are correct D. 1st answer wrong, 2nd answer correct
37. 1st Statement – If an agent contracts in the name of his principal, exceeding the scope of his authority,
the contract is voidable
2nd Statement – To waive any obligation gratuitously in behalf of the principal, a special power of
attorney will be necessary.
A. TRUE, TRUE C. FALSE, TRUE
B. TRUE, FALSE D. FALSE, FALSE
38. X wrote Y, authorizing B to sell a piece of land of his behalf. The land was purchased by Z but Y kept
the money. What can X do?
A. X may refuse to surrender his land to Z.
B. X may require Z to pay the agreed price again.
C. X may only recover the proceeds of the sale from Y.
D. X may recover his land to Z thru court.
39. The following acts will require a special power of attorney, except:
A. To waive any obligation gratuitously.
B. To accept or repudiate an inheritance.
C. To bind the principal to render some service without compensation.
D. To lease any real property to another person for less than one year.
40. Any change in the instrument which affects or changes the liability of the parties in any way.
A. forgery C. material alteration
B. indorsement D. negotiation
42. Where the drawee to whom a bill is delivered for acceptance destroys the same, or refuses within 24
hours after such delivery, or within such other period as the holder may allow, to return the bill
accepted or not accepted to the holder, he will be deemed to have
A. Dishonored the bill B. Paid the bill C. Discharged the bill D. Accepted the bill
43. The holder of the bill presenting the same for acceptance may require that the acceptance be written on
the bill and if such request is refused may treat the bill as
A. Accepted B. Discharged C. Paid D. Dishonored
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44. Where an acceptance for honor does not expressly state for whose honor it is made, it is deemed to be
an acceptance for the honor of the
A. Maker B. Drawer C. Drawee D. Indorser
45. Where a bill payable after sight is accepted for honor, its maturity is calculated from the date of the
A. Presentment for payment C. Acceptance for honor
B. Presentment for acceptance D. Notice for non-acceptance
48. A makes a promissory note for P50,000 payable to the order of B. B negotiated the note to C who
further negotiated it to D. D with the consent of C, raises the amount to P100,000 and thereafter
indorses it to E, E to F, and F to G. In this case:
1st Answer: G if a holder in due course can enforce the instrument against A for P100,000
2nd Answer: G even if a holder in due course cannot enforce the instrument against A because material
alteration is a real defense.
A. Correct, correct B. Correct, wrong C. Wrong, correct D. Wrong, wrong
49. 1st Statement – Mila bound herself to pay Paul her indebtedness. This is evidenced by a promissory
note stating therein the words “I acknowledged being indebted to Paul or order in the amount of
Php100,000”. Sgd. Mila. The instrument is non-negotiable.
2nd Statement – Mila gave Malou a check wherein the only item not filled up is the space for the amount.
Mila instructed the payee to place the amount of Php10,000. However, Malou placed therein
Php100,000. Malou negotiated the check to Marissa who is a holder in due course. Marissa can hold
Mila liable for P100,000.
A. 1st statement is wrong, 2nd statement is correct C. Both statements are wrong.
st nd
B. 1 statement is correct, 2 statement is wrong. D. Both statements are correct
50. Holder H altered the amount of a negotiable note from P10,000 to P100,000 then negotiated the note to
I. As a result:
A. If I is a holder in due course, he can require the maker to pay P100,000
B. If I is not a holder in due course, he can require the maker to pay the sum of P100,000
C. I cannot require the maker to pay because of the forgery whether or not he is a holder in due course
D. I is entitled to P10,000 if he is a holder in due course
52. Megan makes a promissory note for P1,000,000 payable to the order of Althea. Althea negotiates the
note to Marie who indorses it to Anne. Bilo stole the note and raised the amount to P2,000,000 and
thereafter indorses it to Angela, Angela to Angelo, and Angelo to AJ, who is a holder in due course. In
this case:
A. Bilo, Angela and Angelo are not liable to AJ
B. AJ can recover P2,000,000 from all parties because he is a holder in due course
C. Megan, Althea, Marie and Anne are not liable to AJ.
D. Megan, Althea, Marie and Anne are liable to AJ for P1,000,000.
53. X makes a promissory note payable to Y or order. Y Indorses the note to A, then A to B, B to C and C to
D, the holder in whose hands the note is dishonored. D notifies C, B, A and Y about the dishonor of
the note and subsequently indorses it to E. Which is not correct?
A. The notice to C, B, A, and Y inures to the benefits of D and E.
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54. Orly issues a bill payable to the order of Pam. Later Pam without endorsing the bill transfers for a
consideration said bill to Ray. The following except one, are the valid effects of the transfer:
A. Ray acquires the right to have the endorsement of Pam.
B. The bill is merely assigned and not negotiated.
C. Ray becomes a holder.
D. The transfer vests in Ray such title Pam had thereon.
55. An acceptance which reads “Accepted and payable only at CRC-ACE Manila Branch” is an example of:
A. Partial acceptance C. Conditional acceptance
B. Qualified acceptance D. General acceptance
56. An indorsement which attach no liability on the part of the indorser in case of insolvency of the person
principally liable is called
A. Irregular endorsement. C. Conditional endorsement.
B. Qualified endorsement. D. Restrictive endorsement.
58. A person in whose favor another person has signed the instrument as maker, drawer, acceptor, or
indorser, without receiving value thereof, and for the purpose of lending his name.
A. Accommodation party C. Accommodation Bill
B. Accommodated party D. Guarantor
60. Under the Negotiable Instruments Law, a certificate of stock is not a negotiable instrument because it
lacks the requisites of
A. It must contain an unconditional promise or order to pay a sum certain in money.
B. It must be payable on demand or at a fixed or determinable future time.
C. It must be payable to order or bearer.
D. It must be in writing and signed by the maker or drawer.
65. The following persons are disqualified to form a universal partnership. Who are the exceptions?
A. Father and son
B. Husband and Wife
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense, if the partnership is entered into in consideration of the
same
66. A limited partner shall not become liable as a general partner unless:
A. He takes part in the control of the business
B. He contributes his services to the capital of the firm
C. The word ‘LIMITED’ is not added to the name of the partnership
D. All of the above
67. The remedy of capitalist partners against an industrial partner who engaged in a business for himself
without the expressed permission from the partnership is:
A. To compel the industrial partner to sell his interest to the said capitalist partners.
B. To exclude him from sharing in the profits of the partnership.
C. To remove him as manager if he is appointed as manager of the partnership.
D. To expel him from the partnership and claim for damages.
68. Every contract of partnership having a capital of P3,000 or more in money or property shall appear in a
public instrument which must be recorded in the Securities and Exchange Commission. Failure to
comply with said requirements
A. will not affect the liability of a partnership and the members thereof to third persons
B. will render the partnership void
C. will not give the partnership a legal personality
D. will give the partnership a de jure existence
69. Can be made by the managing partner without consent of the other partners:
A. Waiver or compromise
B. Make material alteration upon an immovable property belonging to the partnership
C. Sell partnership goodwill
D. Sell property in the usual course of business
70. A capitalist partner engaged for his own account in an operation which is of the kind of business in which
the partnership is engaged. Said partner can be
A. compelled to sell his interest in the partnership to the other capitalist partners
B. compelled to dissolve or discontinue the operation of his business
C. compelled to bring to the common funds of the partnership any profits accruing to him from his
transactions
D. denied his share in the profit's of the partnership
SET A
CRC-ACE/RFBT: First Pre-board Exam – May 2019 Batch Page 10 of 36
Main: 3F C. Villaroman Bldg. 873 P. Campa St. cor Espana, Sampaloc, Manila (02) 735 8901 / 735 9031
Branch: Rudel Bldg. V, Lower Mabini cor Diego Silang, Baguio City (074) 442-1440
3/F GCAM Bldg. Monteverde St. Davao City (082) 285-8805/ 0933-5470716
1. X is indebted to Y. X voluntarily, and even after the prescription of the debt, paid Y. Changing his mind X
would like to recover what he paid Y. In this case?
Answer No. 1 – X can recover because under the law the creditor has no right to demand payment of an
obligation after it has prescribed
Answer No. 2 – X cannot recover, because the obligation became a natural obligation wherein recovery
of what was voluntarily delivered or paid can no longer be made.
2. X obliged himself to pay Y P100,000 as soon as his means will permit him. 60 days later Y demanded
payment but X refused on the ground that the obligation is not yet due and demandable. What can Y
do?
a. Go to court to ask for damages
b. Go to court to fix the period of maturity of the obligation
c. Go to court and sue X for specific performance
d. The obligation is extinguished
3. Paul and Peter are liable to deliver a car with plate no. AMB 121 valued at P1M to Metring. In this case:
a. On due date, Metring can demand performance of the obligation from either Paul or Peter.
b. Paul is liable for a proportionate part of the obligation but not for damages if Peter will refuse to
deliver.
c. On due date, Metring can demand performance of the obligation from Paul and Peter.
4. Mr. Fu obliged himself to give to Chris his mobile phone if the latter will fly like a bird.
a. The obligation void but the condition is valid.
5. Through some mistake on the part of the bank personnel, Jake was given Php1200 instead of
Php1,000. This situation will be governed by the provisions of the law on:
a. Contracts c. Obligations
SET A
CRC-ACE/RFBT: First Pre-board Exam – May 2019 Batch Page 11 of 36
b. Quasi-delicts d. Quasi-contracts
6. Boy agreed to finish the term paper of Nene. This is an example of:
a. Real obligation c. Positive personal obligation
7. Roy promised to give his car if Joy will pass the CPA board exams on May 2010. The car was destroyed
by typhoon Pepeng even before the results of the exam. Eventually Joy passed the exams. In this case
a. Roy is excused as his obligation was extinguished by a fortuitous event
d. Joy can ask for any other object of the same value
8. X sold his cow to Y for P35,000. No date was stipulated for the delivery of the cow. While still in the
possession of X, the cow gave birth to a calf. In this case:
Answer No. 1 – X can claim the calf as the ownership of the cow is not yet transferred to Y
Answer No. 2 – Y has preference to claim the calf if he will pay for it
9. X promised to give his cow to Y. Before the date stipulated for the delivery of the cow it gave birth to a
calf. In this case:
Answer No. 1 – Y is entitled to the calf as the principal is a specific thing
Answer No. 2 – Y has a real right over the calf upon perfection of the contract.
10. A, B, C and D are solidary debtors of X in the amount of P60,000. X remitted A’s share. B paid X
P60,000. How much can B demand from C if B will ask for reimbursement?
a. P12,500 c. P30,000
11. A, B, and C are solidary debtors of D in the amount of P15,000. D remitted A’s share. B paid D P10,000.
How much can B demand from A if B will ask for reimbursement and C is insolvent?
a. P10,000 c. P2,500
b. P 5, 000 d. P0
12. A, B, C and D are debtors of E, F and G, in the amount of P180,000. A’s obligation is:
a. Pay E P45,000 c. Pay E P15,000
SET A
CRC-ACE/RFBT: First Pre-board Exam – May 2019 Batch Page 12 of 36
13. X borrowed P100,000 from Y secured by a mortgage contract. Without the knowledge of X, Z paid Y to
release the debt of X. As a result:
a. Z cannot recover what he paid from X because the payment was made without the X’s consent
14. A, B and C are solidarily liable to X for P300,000 which will mature on June 30, 2010. On February 1,
2010, A paid X for the whole amount of the debt. If on July 10, 2010 A will be reimbursed by B, the latter
will be liable for:
a. P100,000 without interest
d. P100,000 with interest from to June 30, 2010 to July 10, 2010
15. Rowel ordered Mike, a nine year old boy, to climb a slippery tree, and promised to share with him part of
the fruits. The boy fell and was killed. Rowel is liable for damages because of his fault or negligence,
which is referred to as a:
a. Contract. b. Quasi-delict. c. Delict. d. Quasi-contract.
16. Ester owes Blesilda Php1M. With the consent of both, Josie pays Blesilda Php500,000. Now Blesilda
and Josie are the creditors of Ester. Supposed Ester has only Php500,000. Which statement is correct?
a. Blesilda and Josie should divide the Php500,000 equally
b. Josie should be preferred
c. Ester’s intent will prevail
d. Blesilda should be preferred
17. X owes Y Php2M due on April 30, 2010. X mortgaged his house as guaranty for the debt. On January 6,
2010 the mortgaged house was completely destroyed by typhoon “Pepeng”. A week after Y demanded
payment. Is the demand valid?
a. Yes, the debt becomes demandable because the security established is for the benefit of the
creditor.
b. Yes, the debt becomes demandable because the collateral was lost thru a fortuitous event.
c. No, because the obligation is one with a definite period and the demand would be prejudicial to the
rights of the debtor.
d. No, the obligation is extinguished because the object of the obligation is lost thru a fortuitous
event.
b. If the suspensive condition depends upon chance or upon the will of a third person, the obligation
subject to it is valid.
c. The creditor, as a rule, is not bound to accept payment or performance by a third person, unless such
person has an interest in the fulfillment of the obligation.
SET A
CRC-ACE/RFBT: First Pre-board Exam – May 2019 Batch Page 13 of 36
d. Unless the application of payment is expressly stated, the payment shall be applied to the obligation
most onerous to the debtor
diligence.
c. If person obligated to give a specific thing fails to do it, the same shall be executed at his cost
d. Mora accipiendi is one which is the delay on the part of the creditor to accept the
c. In alternative obligations the right to select which of the prestation shall be delivered belongs to the
creditor, unless expressly given to the debtor.
d. The debtor losses the right to the period if he does not give any security to the creditor
b. The condition that some event happens at a determinate time shall give rise to the obligation as soon
as the time expires or it has become indubitable that the event will not take place.
c. Whoever pays for another may demand reimbursement from the debtor what he has paid
d. The debtor who is obligation to deliver a specific thing cannot compel the creditor to receive an object
of the same kind.
SET A
CRC-ACE/RFBT: First Pre-board Exam – May 2019 Batch Page 14 of 36
b. Those who in the performance of their obligations are guilty of fraud, negligence or delay will be liable
for damages
c. If the condition is potestative on the part of the creditor, the obligation is void
d. If the condition is potestative on the part of the debtor, the obligation is valid
b. All rights acquired in virtue of an obligation are generally transmissible except when prohibited by law
or when prohibited by stipulation of the parties.
c. An example of an obligation with a period is when Villar promises to pay Noynoy Php10M one month
after Gibo wins the 2010 Presidential elections
d. Loss of a generic thing which is the object of an obligation, even without the fault of the debtor, does
not extinguish the debtor’s obligation.
27. Where demand by the creditor shall be necessary in order that delay may exist:
a. when demand would be useless
d. There are two persons who are creditors and debtors of each other.
SET A
CRC-ACE/RFBT: First Pre-board Exam – May 2019 Batch Page 15 of 36
31. The debtor losses the benefit of the period, and his obligation becomes demandable whe:
a. after contracting the obligation, the creditor suspects that the debtor is becoming insolvent.
c. the guarantees as promised and delivered by the debtor are not acceptable to the creditor.
32. Anything paid or delivered before the arrival of a period can be recovered by the debtor who paid by
mistake:
a. with interest c. with interest and other fruits
d. When one debt arises from the obligation of the bailee in a contract of commodatum
34. It is the meeting of one person of the qualities of creditor and debtor with respect to the same obligation:
a. Confusion c. Compensation
b. Remission d. Novation
35. When the thing deteriorates pending the fulfillment of the suspensive condition without the fault of the
debtor, the impairment is to be borne:
a. by the party who caused the deterioration c. by the debtor
SET A
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/mrs
INSTRUCTIONS: Select the correct answer for each of the following questions.
Mark only one answer for each item by writing a SHADING corresponding to the
letter of your choice on the answer sheet.
5. A, B and C wrote and signed a promissory note which states “We promise to
pay D and E P60,000.” At the maturity date of the note, D indorsed back the
promissory note to A. How much obligation is extinguished and by what mode
of extinguishment of obligation?
A. P20,000 by confusion C. P30,000 by remission
B. P60,000 by compensation D. P10,000 by merger
SET A
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SET A
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20. Under the New Civil Code of the Philippines, what is the moment of
perfection of contract entered into through telegram?
A. The contract is perfected from the moment the acceptance is declared or
made.
B. The contract is perfected from the moment the offeree transmits the
notification of acceptance to the offeror.
C. The contract is perfected from the moment that the notification of
acceptance is in the hands of the offeror.
D. The contract is perfected from the moment the offeree’s acceptance
comes to the knowledge of the offeror.
21. A and B are legally married and their property regime is governed by
absolute community of property. A orally sold his specific cellphone to B
at a price of P500 with a carrying amoun of P800 after B pointed a gun to
A. Delivery of the specific cellphone will happen after three years. What
is the status of the contract of sale?
A. Rescissible C. Unenforceable
B. Voidable D. Void
22. B rented the specific truck of S. After the end of the contract, S sold the
property to B. As a result of sale, B continues to have possession of the
property. What type of constructive delivery is present?
A. Traditio clavium
B. Traditio longa manu
C. Traditio brevi manu
D. Traditio constitutum possessorium
23. A orally offered to sell his rice land to B for P8,000,000. B orally
accepted the offer. The land is to be delivered through the execution of a
notarized Deed of Sale and the price is to be paid directly two weeks from
their oral agreement. Which of the following is most accurate?
A. If A refuses to deliver the land on the agreed date despite payment
made by B, the latter may not successfully sue A because the contract
is unenforceable
B. If A refused to deliver the land, B may successfully sue A for the
fulfillment of the obligation before the payment of the purchase price
C. The contract between A and B is rescissible
D. The contract between A and B is subject to ratification by the parties.
24. Spouses H and W are under the regime of absolute community of property. H,
through violence and intimidation obtained the signature of W to a contract
of sale involving W’s exclusive property in favor of B. The fair market
value of the property is P1,000,000 but the selling price is only P700,000.
What is the treatment of the sale?
A. Rescissible C. Valid
B. Voidable D. Void
SET A
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25. H, an Olympic judo champion, with violence and intimidation forced his wife
W to sell W’s pieces of jewelry to B. What is the treatment of the sale?
A. Valid and binding
B. Voidable, because the consent of W is vitiated
C. Rescissible, if W suffered lesion of at least one-fourth of the value
of the property
D. Void, except when a separation of property was agreed upon in the
marriage settlement or there has been a judicial separation of property
26. F made a telephone call to his son S, for S to sell F’s land. In the deed
of absolute sale which was acknowledged before a notary public, S signed as
agent of F. Later, in the presence of two witnesses, F ratified the sale
executed by S. Which is correct?
A. The sale was void at the start but was validated upon the ratification
by F
B. The sale remained void despite the ratification by F
C. The sale was valid from the start since it was made in a public
instrument and F, the owner ratified the sale
D. The sale was merely unenforceable at the start but the ratification
validated the contract
28. A contract where the creditor acquires the right to receive the fruits of
an immovable of his debtor, with the obligation to apply them to the
payment of interest if owing, and thereafter to the principal of his credit
is
A. Antichresis C. Real estate mortgage
B. Usufruct D. Commodatum
29. A was having his house repaired by B, who needed construction materials, so
A orally told the seller C, “Give B the materials, I shall be responsible.
I shall pay in 30 days”. C delivered the materials. As a result,
A. The contract is unenforceable because A made an oral agreement to
answer for the debt of B
B. The contract is enforceable because A did not make a special promise to
answer for the default of another person
C. The contract shall be enforceable if there is ratification by A
D. The contract shall be unenforceable if the value is at least P500.00
SET A
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33. A, B and C are solidary debtors of W and Y, joint creditors for P12,000
where the share of the debtors in the obligation is 2:3:5 while the share
of the creditors is 1:2. If A is insolvent, which of the following is
correct?
A. W can collect from B P3,200
B. Y can collect from C P6,400
C. W or Y can collect from B and C P12,000
D. Y can collect from either B or C P8,000
34. A pointed a gun and threatened to kill B if B will not sign a promissory
note which reads “I promise to pay A, P100,000”. Out of fear, B signed the
note. It turned out that two days earlier, A’s obligation to B amounting to
P100,000 became due and B demanded payment. Now, A alleges compensation. Is
A correct?
A. Yes, because the promissory note is valid
B. No, because the promissory note was signed only because there was
intimidation
C. Yes, provided B will agree
D. No, because A’s obligation does not exist
37. A, minor, sold the ring of his brother without authority for P600,000. The
ring has a fair market value of P1,000,000. The contract is
A. Rescissible C. Unenforceable
B. Voidable D. Void
A. P9,000 C. P3,000
B. P6,000 D. P0
SET A
39. X, Y and Z are W’s sons. Upon the death of W, the three sons found a last
will and testament in the cabinet of W. The will showed disposition of a
30-hectare land, the only asset of W at the time of his death in favor of
the following: X – 5 hectares, Y – 10 hectares and Z – 15 hectares. X felt
discriminated with his share of only 5 hectares. Which is correct?
A. Reformation of the instrument in order to correct the disparity in the
disposal of the property
B. Annulment of the instrument is the proper remedy to correct the mistake
C. Rescission is the proper remedy to correct the damage on the part of X
D. The law does not allow any remedy in this case
41. On January 1, 2018, A bought a parcel of land from B who was insane. The
deed of sale was duly acknowledged before a notary public. Six months after
the sale, A realized that he needed a larger area on which to construct a
commercial building. At about the same time, B who had been undergoing
psychiatric treatment was declared of sound mind by his neurologist. Which
is correct should a court action be filed today?
A. A may successfully prosecute a court action to annul the contract on
the ground of B’s insanity
B. B may successfully prosecute a court action to annul the contract on
the ground of his insanity
C. Neither A nor B may successfully prosecute a court action to annul
the contract
D. A may successfully prosecute a court action to annul the contract on
the ground of mistake as to the area of the parcel of land
43. When the obligor voluntarily prevents the happening of the condition it is
deemed that the condition is:
a. Constructively fulfilled c. Constructively demandable
b. Constructively extinguished d. Constructively nullified
45. A owes B P20,000 which became due and payable last June 23, 2019. On that
date A offered B P10,000, the only money he then had B refused to accept
the payment. A therefore met C, B’s 23 year old son, to whom he gave the
SET A
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49. Mel sold to Jay her car and promised to deliver the car to
Jay on January 30, 2018. On January 15, 2018, Mel sold the
same car to Patrick immediately possessed the car. As of
February 5, 2018, 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;
SET A
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53. A owes B P1M due on Feb. 3, 2018. B owes A a lancer GRS worth
P1M on Feb. 4, 2018.
a. On Feb. 3, 2018, A cannot claim compensation because one
of the debts is not yet due;
SET A
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SET A
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58. C bought the only car of D on February 15, 2019 and D agreed
to deliver it to C on April 30, 2019. They did not agree on
the place of delivery. Where is the place of delivery?
a. Domicile of the debtor c. Where the car is on April 30, 20
b. Where the car is on February d. Domicile of the creditor
15, 2019
SET A
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SET A
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70. “I’ll give you my car one year after X dies of malaria”.
Which of the following is false?
A. Valid, because death is sure to come.
B. Valid, but the condition will be regarded
C. Valid, although time when death will occur is not certain
D. Valid because it does not involve killing a person
71. Angel owes Baldo P10,000. Later Angel paid Baldo P7,000
leaving a balance of P3,000. Caloy, a suitor of Angel and
intending to surprise Angel, paid Baldo the sum of P10,000
thinking that Angel still owed Baldo that amount. Caloy did
this without knowledge of Angel. Which is correct?
A. Caloy can recover P10,000 from Angel
B. Caloy can recover P10,000 from Baldo
C. Caloy cannot recover anything from Angel
D. Caloy can recover P3,000 from Angel
72. Ana owes Buboy P10,000. Ana proposed to Buboy that Celia will
pay Ana’s debt and that Ana will be released from all
liabilities. Buboy and Celia agreed to the proposal. Later,
when Buboy tries to collect from Celia, he finds that Celia
is insolvent, and it was proven that at the time of
delegacion, Celia was already insolvent and such insolvency
SET A
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SET A
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80. Choy owes Chay P1 Million with Cheng as guarantor. Choy paid
P300,000 leaving P700,000 unpaid. Ching without the knowledge
of Choy paid Chay P700,000. As a result:
A. The obligation is extinguished but Ching cannot recover
from Choy instead he should go after Cheng
B. The obligation is extinguished but Ching can recover only
P700,000 from Choy and if Choy cannot pay, Ching should
demand payment from Cheng.
C. The obligation is not extinguished as the payment is
without the consent of Choy.
D. The obligation is extinguished, but Ching can recover
only P700,000 from Choy and if Choy cannot pay, Ching
cannot go after Cheng.
82. The stipulation in the contract to the effect that the debtor
should remain as a servant in the house and in the service of
SET A
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her creditor so long as she had not paid her debt is void
because it is:
A. Contrary to good customs
B. Contrary to public policy
C. Contrary to law
D. Contrary to morals
84. With regard to the right as to the fruits of the thing, which
is not correct?
A. If the obligation is subject to a suspensive condition,
the obligation to deliver arises from the moment the
condition happens.
B. If the obligation arises from a contract of sale, the
vendor has a right to the fruits of the thing from the
time the obligation to deliver arises.
C. If the obligation is subject to a suspensive period, the
obligation to deliver arises upon the expiration of the
term or period.
D. 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.
SET A
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D. Pactumcommissorium
SET A
34
88. In the absence of an agreement to the contrary what shall be the basis of
payment of an obligation in case there should supervene, an extraordinary
inflation or deflation of the currency stipulated?
A. The value of the currency at the time of the establishment of the
obligation.
B. The value of the currency at the due date of the obligation.
C. The value of the currency shall be fixed by courts.
D. The value of the currency shall be determined by an expert from the
Central Bank.
89. George secured and Randy granted a loan of P1M due on December 31, 2017.
George executed a first mortgage of his residential house in favor of
Randy to guarantee the loan. On August 18, 2017 the house was totally
destroyed by an accidental fire. On August 31, 2017, Randy demanded
payment of the loan. Is the demand valid?
A. No. The obligation is one with a definite date for payment.
B. No. The object of the obligation was lost through a fortuitous event
and the obligation was extinguished.
C. Yes. The obligation became due at once because the guaranty was lost
through a fortuitous event.
D. Yes. The obligation became due at once because from the tenor
benefit, the creditor is given the right to demand performance even
before the due date stipulated.
90. Which of the following expresses a correct principle of law? Choose the
best answer.
A. Failure to disclose facts when there is a duly to reveal them, does
not constitute fraud.
B. Violence or intimidation does not render a contract annullable if
employed not by a contracting party but by a third person.
C. A threat to enforce one’s claim through competent authority, if the
claim is legal or just, does not vitiate consent.
D. Absolute simulation of a contract always results in a void contract.
92. 1st Statement - The debtor of a specific thing cannot compel the creditor
to receive a different one, although the latter may be on the same value
as, or more valuable than that which is due.
2nd Statement - Whoever pays for another may demand from the debtor what he
has paid, except that if he paid without the knowledge or against the will
of the debtor he cannot recover anything.
94. A borrower who uses the thing for a purpose different from that intended,
delays its return, receives the thing under appraisal, lends it to a third
person, or saves his property instead of the thing borrowed shall be
liable even in case of fortuitous event, because
A. The nature of the obligation requires the assumption of risk.
B. The parties have expressly stipulated such liability.
C. The law expressly so provides.
D. Time is of the essence.
97. The receipt of the principal by the creditor, without reservation with
respect to the interest, shall give rise to:
A. conclusive presumption that the creditor is not paid as to the
principal amount
B. disputable presumption that said interest has been paid
C. conclusive presumption that said interest has been paid
D. disputable presumption that the creditor is paid as to the principal
amount
98. A debtor may still be held liable for loss or damages even if it was
caused by a fortuitous event in any of the following instances, except:
36
A. The debtor is guilty of dolo, malice or bad faith, has promised the
same thing to two or more persons who do not have the same interest.
B. The debtor contributed to the loss.
C. The thing to be delivered is generic.
D. The creditor is guilty of fraud, negligence or delay or if the
contravened the tenor of the obligation.
mrs/ajp