Law On Obligations And Contracts Test Bank

LAW ON OBLIGATIONS AND CONTRACTS TEST BANK INTRODUCTION

5. It is an essential element of obligation which is the efficient cause established by the various sources of obligations: a. vinculum juris or juridical tie

1. The kind of obligation defined in Article 1156 of the Civil Code is called: a. Natural obligation

b. juridical capacity c. prestation, object or conduct d. active and passive subjects

b. Civil obligation c. Moral obligation d. Parental obligation

6. In an agreement between the seller and the buyer whereby the former will buy from the latter a specific thing for P1,000, what is the efficient cause or juridical tie: a. to give the specific thing

2. An obligation exclusively based on positive law and enforceable in court:

b. to pay the price

a. civil obligation

c. agreement

b. natural obligation

d. purchase of the specific thing

c. moral obligation d. mixed obligation

7. Obligations governed primarily by the agreement of the parties:

3. If a creditor’s right of action to collect based on a written contract has prescribed after 10 years from the time the action has accrued, the civil obligation of the debtor is converted into:

a. Those arising from law b. Those arising from quasi-contracts c. Those arising from contracts d. Those arising from quasi-delicts

a. civil obligation b. natural obligation c. moral obligation d. mixed obligation

4. The definition of obligation emphasized the obligation of the obligor or debtor and implies the correlative right of the oblige or creditor to: a. sign the contract b. demand the performance of the act or conduct c. rescind the contract d. honor his recirprocal obligation

8. The following are essential elements of a valid object or prestation, except: a. must be determinate or specific or at least determinable b. must be physically or legally possible c. must have an economic value or be capable of pecuniary estimation or possible equivalent in money d. none of the above

9. Form is a requisite only of obligations:

b. Juridical tie c. Prestation

a. arising from law

d. Passive subject

b. arising from quasi-contracts c. arising from solemn contracts (e.g. donation)

14. This will NOT result to a civil obligation:

d. arising from quasi-delict a. Riding a jeepney 10. The obligee is also called:

b. Excess in the change given by a saleslady

a. Active subject

c. Break up between boyfriend and girlfriend

b. Juridical tie

d. Stealing something

c. Prestation d. Passive subject

15. This will result to a civil obligation:

11. The creditor is also called:

a. Failure to return a borrowed item from a friend

a. Active subject

b. Not liking the food ordered in a fast food chain because of its taste

b. Juridical tie c. Prestation

c. Failure to follow parent’s command to help in the household chores

d. Passive subject

d. Refusal to share notes with a classmate

12. This is not an element of a civil obligation:

16. Quasi-contracts are those legal relations that:

a. Are agreed upon by both parties a. Parties

b. Result from an illegal act

b. Juridical tie

c. Requires payment to avoid being benefited at the expense of another

c. Prestation d. All of the above are elements of civil obligation

13. This is the reason for the existence of the obligation

d. Result from fault or negligence

17. Quasi-delicts are those legal relations that:

a. Are agreed upon by both parties a. Active subject

b. Result from an illegal act

c. Requires payment to avoid being benefited at the expense of another d. Result from fault or negligence, there being no pre-existing contract between the parties

18. Obligation derived from this source of obligations is not presumed and must expressly provided by the Civil Code or special laws in order to be demandable:

21. It is an extra-contractual obligation where an officious manager voluntarily takes over an abandoned or neglected property or business without authority of the owner:

a. negotiorum gestio b. solution indebiti c. quantum meruit d. res ipsa loquitor

a. law or ex lege b. contract or ex contractu

22. As a general rule, every person criminally liable for a felony is:

c. quasi-contract or quasi-contractu d. act or omission punishable by law or ex delito or ex malficio

a. likewise liable for exemplary damages b. also civilly liable

19. Obligations arising from this source of obligations have the force of law between the contracting parties and should be complied with in good faith:

a. law or ex lege

c. generally not civilly liable d. discharged from payment of civil liability

23. In case of material damage or injury, the liability of a convicted person includes:

b. contract or ex contractu c. quasi-contract or quasi-contractu d. act or omission punishable by law or ex delito or ex malficio

a. restitution b. reparation c. indemnification d. all of the above

20. A source of obligation, which is a legal fiction of legal relation resulting from lawful, unilateral and voluntary act where there is no existing contract:

24. It is an act or omission which causes damage to another, there being fault or negligence and there being no pre-existing contractual relation between the parties:

a. law or ex lege b. contract or ex contractu

a. contract

c. quasi-contract or quasi-contractu

b. quasi-contract

d. act or omission punishable by law or ex delito or ex malficio

c. crime d. quasi-delict

25. A source of obligation where it is not the act or omission which gives rise to the obligation, but the want of care required from the circumstances:

THE PROPER DILIGENCE OF A GOOD FATHER OF A FAMILY UNLESS THE LAW OR THE STIPULAITON OF THE PARTIES REQUIRES ANOTHER STANDARD OF CARE.

a. contract b. quasi-contract

28. This is a determinate thing:

c. crime d. quasi-delict NATURE AND EFFECT OF OBLIGATIONS

a. A kilo of “dinorado” rice b. A pet dog Labrador c. Ballpen you are using right now d. Mobile phone Samsung Galaxy

26. A person who is obliged to give something is:

a. Required to take care of the thing he will deliver diligently at all times

29. The following are the rights available to a creditor in obligations to give a determinate thing:

b. Required to take care of the thing he will deliver diligently if the thing is determinate only

a. To compel specific performance

c. Is not required to do something at all

c. Acquires personal right to the fruits of the thing from the time the obligation to deliver arises

d. Liable for damages if the thing is lost all the time

27. D and C agreed that prior to the delivery of D’s dog Blackie, D should keep it in the dog house, feed it four times a day, give it a bath five times a week and make it stroll every morning for at least one hour. D should therefore, take care of Blackie:

a. With ordinary care b. According to law c. According to stipulation d. With proper diligence of a good father of the family

b. To recover damages in case of breach.

d. All of the above

30. The following are the rights available to a creditor in obligations to give a generic thing:

a. To ask for performance of the obligation. b. To ask that the obligation be complied with at the expense of the debtor. c. Acquires personal right to the fruits of the thing from the time the obligation to deliver arises d. Only letter (a) and (b)

ART. 1163. EVERY PERSON OBLIGED TO GIVE SOMETHINg IS ALSO OBLIGED TO TAKE CARE OF IT WITH

Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he

shall acquire no real right over it until the same has been delivered to him.

Art. 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by Article 1170, may compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery.

Art. 1166. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned. The following are the rights available to a creditor in obligations to give: If it is a determinate thing:

2. To ask that the obligation be complied with at the expense of the debtor. (ART. 1165) Duties of debtor in obligation to deliver a generic thing. They are: 1. To deliver a thing which is of the quality intended by the parties taking into consideration the purpose of the obligation and other circumstances (see Art. 1246.); and 2. To be liable for damages in case of fraud, negligence, or delay, in the performance of his obligation, or contravention of the tenor thereof. (see Art. 1170.)

A determinate thing is one that is particularly designated or physically segregated from all others of the same class. (Article 1460, Civil Code of the Philippines) A generic thing is one whose determination is confined to that of its nature, to the genus to which it pertains such asa horse, a chair.( De Leon vs. Soriano, 87 Phil. 196).

31. If the debtor is already delayed:

a. To compel specific performance (ART. 1165) b. To recover damages in case of breach. (ART. 1170) c. Acquires personal right to the fruits of the thing from the time the obligation to deliver arises (ART. 1164) d. Acquires real right over the thing once the thing has been delivered to him. (ART. 1164)

a. He is liable for damages even if the thing was lost due to fortuitous event b. He is not liable for damages if the thing was lost due to fortuitous event c. He is not liable for damages all the times d. He is liable for damages all the times

e. Rights over the accessories and accessions. (ART. 1166) If it is a generic thing: 1. To ask for performance of the obligation. (ART. 1165)

Art. 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by Article 1170, may compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery.

32. It the obligation is to give a mobile phone and there was no agreement:

a. The debtor should also give the mobile phone charger b. The debtor is not obliged to give the mobile phone charger c. The debtor should only give the mobile phone charger if it was asked from him d. The debtor should not only give the mobile phone charger but also the headphone and other accessories, if any Art. 1166. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned.

Accessory and the principal thing MUST GO TOGETHER. Both accessions and accessories can exist only in relation to the principal. 33. The creditor in an obligation to do has the right to:

a. Ask the debtor to perform the obligation b. Ask the debtor who fails to perform the shall obligation to pay the person who executed the obligation c. Ask the debtor who contrived the tenor of the obligation or have done the work poorly to pay d. All of the above

Art. 1167. If a person obliged to do something fails to do it, the same shall be executed at his cost.

This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone. (1098)

34. Delay occurs when:

a. The date of payment arrive 1) Accessions - fruits of, or additions to, or improvements upon, a thing (the principal), e.g., house or trees on a land; rents of a building; aircon in a car; profits or dividends accruing from shares of stocks; etc. (2) Accessories - things joined to, or included with, the principal thing for the latter’s embellishment, better use, or completion, e.g., key of a house; frame of a picture; bracelet of a watch; machinery in a factory; bow of a violin. DIFFERENCE - Accessions are NOT NECESSARY to the principal thing.

b. The creditor demand for the fulfillment of the obligation c. Anytime d. The day after the date of payment agreed upon

35. A and B entered into a contract stating that A shall pay B P100,000.00 on or before Christmas Day of 2018 without need of demand. Supposing that after Christmas 2018, A has not yet paid B and that B has yet to make any demand from A to pay. In this case:

a. A is no longer liable to pay B P100,000 b. A is still liable to pay B P100,000

upon him. From the moment one of the parties fulfills his obligation, delay by the other begins.

c. A is liable to pay B damages only d. A is liable to pay B P100,000 plus damages

36. This will not result to liability for damages:

a. Fraud b. Delay c. Performance not according to what was agreed upon d. All of the above will result to liability for damages

Art. 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. KINDS OF OBLIGATIONS

37. The following are primary classes of obligations except:

a. pure and conditional b. alternative and facultative c. real and personal d. joint and solidary

Art. 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation.

38. An obligation that does not depend on any condition is called

a. Facultative However, the demand by the creditor shall not be necessary in order that delay may exist:

b. Alternative

(1) When the obligation or the law expressly so declare; or

d. Pure

(2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the contract; or

39. This is demandable at once:

(3) When demand would be useless, as when the obligor has rendered it beyond his power to perform.

c. Resolutory

a. Obligation that is based on a suspensive condition b. Obligation that is based on a resolutory condition c. Obligation with a period d. Joint obligation

In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent

40. These kinds of obligations are demandable at once except:

d. Potestative condition a. Pure obligation b. Obligations which contains a resoutory condition c. Facultative Obligations

43. An event that is both future and uncertain upon which the existence or extinguishment of an obligation is made to depend is called:

d. None of the above a. Fortuitous event Art. 1179. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once. Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event.

b. Condition c. Period d. Day certain

44. A past event may be considered a condition:

a. False since a condition must be something that will happen in the future 41. A got a loan worth P100,000.00 from B. A binds himself to pay B when his financial condition would allow him to do so. A’s obligation to pay B in this case is: a. An example of a pure obligation b. An example of an obligation with a potestative condition

b. False since an event that has happened in the past cannot be condition c. True only if that past event is unknown to both parties d. True even if the past event is known to one party as long as it is still unknown to the other party

c. An example of an obligation with a period d. An example of an obligation with a resolutory condition

45. A and B had an agreement where A is obliged to give something to B. The obligation is based on C passing the CPA Board Exam. In this case:

Art. 1180. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period, subject to the provisions of Article 1197.

a. A’s obligation is based on a casual condition and is valid

42. This is void:

c. A’s obligation is based on a mixed condition and is not valid

a. Suspensive condition

d. A’s obligation is based on a casual condition and is not valid

b. Facultative condition c. Unilateral condition

b. A’s obligation is based on a potestative condition and is not valid

Art. 1181. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition.

47. If A binds himself to give B P1,000 if B will cause harm to C, the:

a. Obligation is void Art. 1182. When the fulfillment of the condition depends upon the sole will of the debtor, the conditional obligation shall be void. If it depends upon chance or upon the will of a third person, the obligation shall take effect in conformity with the provisions of this Code. (i) Suspensive v. resolutory conditions: Suspensive Condition– the happening of which gives rise to an obligation Resolutory Condition – the happening of which extinguishes the obligation (ii) Potestative, casual and mixed conditions: Potestative condition – where the fulfillment depends upon one‘s will (either the debtor, creditor or a third person) Casual condition – when the fulfillment of the condition depends upon chance Mixed condition – when the fulfillment of the condition depends partly upon the creditor and or a third party (iii) Impossible conditions Impossible Condition – that which is not capable of fulfillment because it is contrary to the law of nature or contrary to law, morals, public order or public policy.

46. Obligations based on this condition is annulled:

a. Impossible condition

b. Obligation becomes demandable at once c. The obligation is subject to impossible condition d. None of the above

48. If A binds himself to give B P1,000 if B will not cause harm to C, the:

a. Obligation is void b. Obligation becomes demandable at once c. The obligation is subject to impossible condition d. None of the above

Note – “will not cause harm” Negative impossible thing

Art. 1183. Impossible conditions, those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the impossible or unlawful condition shall be valid. The condition not to do an impossible thing shall be considered as not having been agreed upon. 49. An obligation where only one of the parties is bound to fulfill a prestation:

b. Condition contrary to good customs or public policy

a. Personal

c. Condition that is prohibited by law

b. Divisible

d. All of the above

c. Unilateral

d. Joint

50. Obligations arising from the same cause where each party is a debtor and a creditor of the other:

a. Solidary b. Pure c. Alternative d. Reciprocal

51. This is when the debtor is bound by different prestations:

a. Alternative obligation

b. Juan may sell his car to Pedro without waiting for April 2012 c. Juan may be forced to deliver to Maria the car only after graduation d. Juan may be forced to give the car to Maria since the car is considered owned by Maria at the time of their agreement Art. 1184. The condition that some event happen at a determinate time shall extinguish the obligation as soon as the time expires or if it has become indubitable that the event will not take place.

54. A obliged to give B P100,000 if B’s favorite basketball team will not win the championship. The legal consequence of this agreement is:

b. Facultative obligation c. Joint obligation d. Solidary obligation

52. This is when the debtors answer only for their part:

a. Joint obligation

a. A should pay B P100,000 if the basketball team loses the championship b. A should pay B even before another team wins championship if the team was eliminated from the finals c. A should pay B the moment it becomes evident that the team will not win the championship for whatever reason d. All of the above

b. Solidary obligation c. Facultative obligation d. Alternative obligation

53. Juan and Maria had an agreement that Juan will give his car to Maria if she will graduate cum laude in April 2012. In her last semester, Maria got a failing grade that makes her ineligible for graduation in April 2012. In this case:

a. Juan should take care of the car until April 2012 for Maria since the obligation is to deliver a determinate thing

Art. 1185. The condition that some event will not happen at a determinate time shall render the obligation effective from the moment the time indicated has elapsed, or if it has become evident that the event cannot occur. If no time has been fixed, the condition shall be deemed fulfilled at such time as may have probably been contemplated, bearing in mind the nature of the obligation.

55. There is constructive fulfillment of a condition when:

a. The obligor voluntarily prevents the fulfillment of a suspensive condition or condition precedent b. The obligor voluntarily prevents the fulfillment of a resolutory condition or condition subsequent

b. Joey is not liable to Maricel of damages even if he was negligent c. Joey is no longer liable to pay Maricle his debt amounting to P10,000.00 d. Joey is only liable to Maria in the amount of P5,000.00

c. There is impossible condition d. None of the above

Art. 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment.

56. Mario borrowed the laptop of Trixie. The agreement was for Mario to return the laptop to Trixie next Monday. Unfortunately, a fire that occurred on Sunday gutted Mario’s house. Mario was not able to save the laptop of Trixie because the fire was so sudden. In this case:

58. A promised to deliver his car with plate number XXX111 to B on the condition that B will graduate with honors. The legal effect of such agreement is: a. A is relieved from the obligation if the car was lost due to fortuitous event before B’s graduation. b. A will be liable to B if the car was lost due to the fault of A. c. A should pay for the repair of the car if the car was damaged due to A’s fault. d. All of the above

a. Mario should pay the value of the laptop to Trixie but without interest

59. A certain diamond ring owned by Mrs. Cruz was stolen the night before Mrs. Cruz deliver the same to Mrs. Santos based on their agreement. In this case:

b. Mario should pay the value of the laptop to Trixie subject to interest

a. The diamond ring is considered lost

c. Mario should pay the value of the laptop to Trixie and damages because there are important files in the said laptop belonging to Trixie

b. Mrs. Cruz is liable to pay Mrs. Santos damages

d. Mario is not liable to pay Trixie

d. All of the above

57. Joey is indebted to Maricel in the amount of P10,000.00. Maricel gave Joey the option to just give to her his used cellphone amounting to P5,000.00 instead of paying the amount of his indebtedness. Joey has yet to make up his mind what to give to Maria when he negligently lost his cellphone. In this case:

60. A promised to give his cellphone to B on condition that B will graduate with honors. The legal consequence if the cellphone deteriorates would be:

a. Joey is liable to Maricel of damages because he was negligent

c. Mrs. Cruz is still liable to deliver the diamond ring to Mrs. Cruz

a. A’s obligation is extinguished regardless whether A was at fault or not b. B will bear the cost of the repair of the cellphone if the deterioration was not due to A’s fault c. A cannot rescind the obligation regardless whether the deterioration is due to A’s fault or not

d. None of the above is correct Art. 1189. When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give, the following rules shall be observed in case of the improvement, loss or deterioration of the thing during the pendency of the condition: (1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished; (2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered; (3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor; (4) If it deteriorates through the fault of the debtor, the creditor may choose between the rescission of the obligation and its fulfillment, with indemnity for damages in either case; (5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the creditor; (6) If it is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary.

61. A is bound to give B his watch while B is bound to give A his dog. In case the dog dies: a. A is still bound to give B his watch regardless whether B was at fault or not b. A is no longer bound to give his watch to B c. A is only bound to give B his watch only when B was not at fault d. None of the above is correct

Art. 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him. The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible. The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period. This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with Articles 1385 and 1388 and the Mortgage Law. (1124)

Art. 1192. In case both parties have committed a breach of the obligation, the liability of the first infractor shall be equitably tempered by the courts. If it cannot be determined which of the parties first violated the contract, the same shall be deemed extinguished, and each shall bear his own damages.

62. A is bound to pay B P100,000 on or before June 1, 2020. A believing that the obligation is due paid B the entire amount. In this case:

a. A cannot recover from the amount. b. A may recover from B the amount paid. c. A may recover from B the entire amount with interest. d. None of the above.

Art. 1195. Anything paid or delivered before the arrival of the period, the obligor being unaware of the period or believing that the obligation has become due and demandable, may be recovered, with the fruits and interests.

63. In an obligation with a period, the period is:

a. For the benefit of the debtor only b. For the benefit of the creditor only c. For the benefit of both the debtor and the creditor d. None of the above is correct

(2) When he does not furnish to the creditor the guaranties or securities which he has promised; (3) When by his own acts he has impaired said guaranties or securities after their establishment, and when through a fortuitous event they disappear, unless he immediately gives new ones equally satisfactory; (4) When the debtor violates any undertaking, in consideration of which the creditor agreed to the period; (5) When the debtor attempts to abscond.

Art. 1196. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of both the creditor and the debtor, unless from the tenor of the same or other circumstances it should appear that the period has been established in favor of one or of the other.

64. The debtor shall lose his right to make use of the period when: a. When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or security for the debt. b. When he does not furnish to the creditor the guaranties or securities which he has promised. c. When by his own acts he has impaired said guaranties or securities after their establishment, and when through a fortuitous event they disappear, unless he immediately gives new ones equally satisfactory.

65. A is bound to give B any of the following,P10,000 in cash, his Labrador dog, or his cellphone. In this case: a. A can compel B to accept part in cash and another dog. b. A has the right to choose which one to deliver unless there was an agreement to the contrary. c. B has the right to choose which on c. B has the right to choose which one should A deliver unless there was an agreement to the contrary. d. None of the above. * Art. 1199. A person alternatively bound by different prestations shall completely perform one of them. The creditor cannot be compelled to receive part of one and part of the other undertaking.

d. All of the above.

Art. 1198. The debtor shall lose every right to make use of the period: (1) When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or security for the debt;

Art. 1200. The right of choice belongs to the debtor, unless it has been expressly granted to the creditor. The debtor shall have no right to choose those prestations which are impossible, unlawful or which could not have been the object of the obligation.

Art. 1201. The choice shall produce no effect except from the time it has been communicated.

66. Tito, Vic and Joey are liable to Jose jointly and severally in the amount of P30,000.00. In this case:

a. Jose can ask Tito to pay the entire amount

a. Allan can just pay P5,000 if he does not want to do the act of getting Ging’s necklace b. Allan should pay Ronnie P5,000 is he fails to get Ging’s necklace c. Allan can refuse to do what Ronnie asks him to do and also refuse to pay the P5,000 d. Allan cannot refuse to do what Ronnie asks him to do because of his contract with Ronnie

b. Jose cannot ask Tito to pay the entire amount c. Jose should ask the three, Tito, Vic and Joey to pay if she wants to be paid the entire amount d. Jose can ask his debtors to pay their respective share only

67. Pilo and Steph are solidarily obliged to give Minda a specific car worth P500,000.00. The car was lost because of the fault of Steph. Hence, Minda asked them to pay the amount of P500,000.00. Pilo is ready to pay his share but Steph cannot. In this case:

69. Chona wanted to buy a new cellphone. Her friend Regidor knew about it and wanted to impress Chona. So he bought the exact model of the cellphone Chona wanted to buy. He did it without Chona’s consent. Unknown to Regidor, Chona could have availed of 25% discount from a seller. In this case:

a. Chona should pay the entire amount to Regidor b. Chona is only liable to pay 75% of the amount of the cellphone c. Chona is only liable to pay 25% of the amount of the cellphone

a. Minda can compel Pilo to pay the entire amount b. Minda cannot compel Pilo to pay the entire amount c. Pilo is relieved from his obligation because the car was lost due to Steph’s fault d. The obligation to deliver the car was extinguished because Pilo had nothing to do with the loss

68. Ronnie hired Allan to forcibly get Ging’s necklace. They agreed that if Allan will fail in his mission, he should pay Ronnie P5,000.00. In this case:

d. Chona is not liable at all to Regidor

70. Troy is indebted to James in the amount of P50,000. As a security, Troy offered his diamond-embedded ring that is coveted by Missy. Missy paid the loan of Troy to James thinking that Troy will default. She did it without Troy’s consent. In this case:

a. Missy can get Troy’s ring if he cannot pay the P50,000 b. Missy cannot get Troy’s ring even if he fails to pay c. Troy cannot be forced to pay Missy because she paid the loan without Troy’s consent

d. Troy is only liable to give Missy the ring 71. Joshua owed Katrina P100,000 subject to 10% interest (simple interest only). Joshua paid Katrina P20,000. How much is not Joshua’s indebtedness?

Art. 1305. A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.

74. The parties to a contract: a. P100,000 b. P90,000 c. P80,000 d. P20,000

72. Jose transacts in US Dollars. She was liable to pay US$ 10,000 to XYC Company. A law was later passed declaring it illegal to pay in US Dollars or in any other foreign currency. In this case:

a. Jose is no longer liable to XYC Company because he is release from liability when payment in US Dollars became legally impossible b. Jose should still pay XYC Company US$ 10,000 because that was the contract

a. Are free to stipulate on the terms and conditions of the contract subject to certain limitation b. Are free to stipulate on the terms and conditions of the contract without any limitation at all c. Are not free to stipulate on the terms and conditions in all cases d. Are not free to stipulate on the terms and conditions in certain cases

75. An autocontract is:

a. A contract where two distinct persons enter into it

c. Jose should pay in Philippine Peso

b. A contract were one person contracts with himself or herself

d. Jose was never in debt to XYC Company because the contract was not in Philippine legal tender

c. A contract where a party has already a prepared form of contract and the other party just have to take it or leave it

73. A contract is:

a. A juridical necessity to perform an obligation for another person b. An agreement wherein at least two persons agree that they will give or do something for the other c. A choice to give, to do or not to do d. A meeting of minds between two persons whereby one will pay a sum of money to the other person

d. A contract where only one of the parties has an obligation

76. Contracts may be classified according to its importance or dependence on another contract as follows:

a. Onerous, gratuitous or remunerative contracts b. Principal, accessory or preparatory contracts c. Nominate or innominate contracts d. Consensual, real or formal contracts

d. Consideration 77. A contract wherein only one of the parties has an obligation is called:

a. Unilateral contract b. Bilateral contract

80. Consent in a contract means:

a. The offer of one of the parties

c. Commutative contract

b. The acceptance of the offer subject to a certain condition

d. Aleatory contract

c. The offer of several options d. The meeting of the offer and acceptance

Art. 1306. The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.

78. This is NOT generally required in order to make a contract valid:

a. Consent of the parties b. Object of the contract c. Cause of the contract

81. Mario is trying to sell to Trixie his merchandise. He is offering his laptop to Trixie for P20,000.00. Trixie asked Mario for a discount. Mario responded that he will ask his boss if he can lower the price. In this case:

a. The contract of sale is perfected b. There is a contract of sale but it is unenforceable c. There is no contact yet d. Trixie should pay Mario the entire amount of P20,000.00

d. Specific form of the contract Art. 1318. There is no contract unless the following requisites concur: (1) Consent of the contracting parties; (2) Object certain which is the subject matter of the contract; (3) Cause of the obligation which is established.

79. The meeting of the offer and the acceptance is called:

a. Consent

Art. 1319. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a counter-offer. Acceptance made by letter or telegram does not bind the offerer except from the time it came to his knowledge. The contract, in such a case, is presumed to have been entered into in the place where the offer was made.

b. Cause c. Communication

82. Tony offered to Paula his 20 moblie phones for P10,000.00 each. Paula

answered that she is willing to buy the cellphone, for the price but just 15 pieces. Is the contract perfected:

a. Relativity b. Mutuality c. Obligatory force

a. No, because there is a qualified acceptance which constitutes an offer by the buyer b. Yes, because there perfected sale because the number of pieces is merely incidental and the items are divisible and capable of partial delivery c. Yes, because there was already acceptance

d. Freedom to stipulate

Art. 1308. The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them.

d. No, because the offer is not yet certain

85. The principle that states that the contract takes effect only between their assigns and heirs is known as:

83. A qualified acceptance constitutes:

a. Relativity b. Mutuality

a. Acceptance

c. Obligatory force

b. Counter-offer

d. Freedom to stipulate

c. Meeting of the minds d. All of the above Art. 1319. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a counter-offer. Acceptance made by letter or telegram does not bind the offerer except from the time it came to his knowledge. The contract, in such a case, is presumed to have been entered into in the place where the offer was made.

Art. 1320. An acceptance may be express or implied.

84. The principle that states that the contract is binding only between the parties is known as:

86. Allan borrowed money from XYZ Corporation. The loan was subject to an interest rate. XYZ Corporation wants now to increase the interest rate without the consent of Allan. Allan, in this case, may protest such action of XYZ Corporation by citing:

a. Principle of autonomy of contracts b. Principle of mutuality of contracts c. Principle of relativity of contracts d. Principle that parties can stipulate as long as it is not contrary to law, morals, good customs, public policy, and public order

Art. 1311. Contracts take effect only between the parties, their assigns and heirs, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by

stipulation or by provision of law. The heir is not liable beyond the value of the property he received from the decedent.

a. Valid b. Void c. Voidable

If a contract should contain some stipulation in favor of a third person, he may demand its fulfillment provided he communicated his acceptance to the obligor before its revocation. A mere incidental benefit or interest of a person is not sufficient. The contracting parties must have clearly and deliberately conferred a favor upon a third person.

87. Contracts that are perfected by delivery of the object of the obligation is called:

a. Consensual contract

d. Unenforceable

Art. 1317. No one may contract in the name of another without being authorized by the latter, or unless he has by law a right to represent him.

A contract entered into in the name of another by one who has no authority or legal representation, or who has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it has been executed, before it is revoked by the other contracting party.

b. Real contract c. Delivery contract d. Obligatory contract Art. 1316. Real contracts, such as deposit, pledge and Commodatum, are not perfected until the delivery of the object of the obligation.

90. A offered to sell his favorite car to B for P400,000. Before B was able to accept the offer, A died of sudden heart attack. In this case:

a. The heirs of A is obliged to sell the car to B 88. A owns a property for rent which was leased by B to C without A’s consent. In case A later ratifies to contract, the contract of lease is:

b. The heirs of A is not obliged to sell the car to B c. B is obliged to buy the car d. None of the above

a. Valid b. Void c. Voidable d. Unenforceable

89. A owns a property for rent which was leased by B to C without A’s consent. In this case, the contract of lease is:

Art. 1323. An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance is conveyed.

91. A offered to sell his favorite car to B for P400,000. A gave B one week to accept the offer or the car will be sold to another. In this case:

a. A cannot withdraw his offer to B before the lapse of one week b. A can withdraw his offer to B after the lapse of one week c. A can withdraw his offer to B even after the lapse of one week d. None of the above

92. A offered to sell his favorite car to B for P400,000. A gave B one week to accept the offer or the car will be sold to another. For this period, B paid A P2,500. In this case:

a. A cannot withdraw his offer to B before the lapse of one week b. A can withdraw his offer to B after the lapse of one week c. A can withdraw his offer to B even after the lapse of one week

a. John, who is deaf and mute b. Rebecca, who is 18 years old c. Connie, who is in lucid interval d. All of them may give consent to a contract

Art. 1327. The following cannot give consent to a contract: (1) Unemancipated minors; (2) Insane or demented persons, and deaf-mutes who do not know how to write.

95. A contract entered by A, who was drunk at the time of the contract and B who was in a normal state of mind is:

d. None of the above

a. Valid

Art. 1324. When the offerer has allowed the offeree a certain period to accept, the offer may be withdrawn at any time before acceptance by communicating such withdrawal, except when the option is founded upon a consideration, as something paid or promised.

b. Void

93. This person cannot give consent to a contract:

Art. 1329. The incapacity declared in Article 1327 is subject to the modifications determined by law, and is understood to be without prejudice to special disqualifications established in the laws. (1264)

a. A, a 14 year old boy b. B, a 27 year old insane person

c. Voidable d. Unenforceable

Art. 1328. Contracts entered into during a lucid interval are valid. Contracts agreed to in a state of drunkenness or during a hypnotic spell are voidable.

c. C, a 34 year of deaf-mute d. All of the above

94. Who among the following cannot give consent to a contract:

Art. 1330. A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud is voidable. (1265a)

96. A needed a vehicle that can ride at least 10 persons as his family planned to go to Sagada. B offered his vehicle for hire. A accepted the offer. When B delivered the car on the agreed date, A saw that the car can ride only 8 persons including the driver. In this case, the contract between A and B is:

Art. 1333. There is no mistake if the party alleging it knew the doubt, contingency or risk affecting the object of the contract.

98. When one party in a contract employed serious or irresistible force in order to wrest consent, there is:

a. Valid b. Void

a. Fraud

c. Voidable

b. Violence

d. Unenforceable

c. Intimidation d. Undue influence

Art. 1331. In order that mistake may invalidate consent, it should refer to the substance of the thing which is the object of the contract, or to those conditions which have principally moved one or both parties to enter into the contract. Mistake as to the identity or qualifications of one of the parties will vitiate consent only when such identity or qualifications have been the principal cause of the contract. A simple mistake of account shall give rise to its correction.

97. A participated in a public auction of several items for sale conducted by a private auction firm. The sale was “as is where is basis.” A participated in a bidding for certain item which he thought will be useful for his business. It turned out that the items have no longer economic use. It this case: a. There was no mistake and the contract of sale is perfectly valid

99. When one party in a contract was compelled by a reasonable and wellgrounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants or ascendants, there is: a. Fraud b. Violence c. Intimidation d. Undue influence

100. Pilo was caught stealing the laptop of Steph. Because the laptop was damaged due to Pilo’s act, Steph asked Pilo pay her P30,000.00 or else, Steph will sue Pilo and would send him to jail. Pilo signed a contract to this effect. Later, he said that he acted with fear because of the intimidation employed by Steph. In this case: a. The contract is voidable

b. There was a mistake in this case and A is allowed to invalidate the sale

b. The contract is unenforceable

c. There was no mistake but A can still refund whatever he paid for the items

d. The contract is void

d. None of the above

c. The contract is valid