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Multiple Choice
1. A is obliged to deliver a Rolex watch to B on December 1, 2009.
A. Before December 1, 2009, A has to take care of the Seiko watch with the diligence of a good
father of the family.
B. In case of loss of the Seiko watch by negligence of A, A is liable in damages.
C. A is not required to exercise the diligence of a good father of a family.
D. The obligation of A to B is not valid.
ANS: C
2. A is obliged to deliver to B one of his three (3) cars.
A. The obligation is not valid because the object is not determined.
B. The obligation is valid because the object is determinable.
C. The obligation is valid. B can choose which one of the 3 cars.
D. The obligation is valid because there is consent between A and B.
ANS: A
3. In an obligation to deliver a generic thing:
A. The debtor is not liable for fraud or delay or negligence in the performance of the obligation.
B. The debtor can choose which thing pertaining to the class to deliver.
C. The creditor has the right of choice.
D. Loss by fortuitous event extinguishes the obligation.
ANS: A
4. Statement 1. Accessions are necessary to the principal thing.
Statement 2. Accessories are not necessary to the principal thing but both must go together.
A. True; False
B. False; True
C. Both statements are true.
D. Both statements are false.
ANS: C
5. A binds himself to pay B P1,000 on December 10, 2011.
A. If December 10 has elapsed but A has not paid B, A is in delay.
B. A shall be liable to pay B P1,000 plus legal interests.
C. If the P1,000 is lost by fortuitous event the obligation is extinguished.
D. A is not in delay unless B has made a demand.
ANS: D
6. A agreed to B not to construct a fence between their 2 houses.
A. The obligation is not valid.
B. This is a negative real obligation.
C. This is valid but cannot be enforced.
D. A will never be in delay.
ANS: D
7. When a debtor is in delay:
A. He is liable for damages.
B. He is liable even for fortuitous event.
C. All of the above.
D. None of the above.
ANS: C
8. A source of liability is:
A. Dolo causante
B. Pare delicto
C. Dolo incidente
D. Culpa aquiliana
ANS: C
9. Statement 1. Waiver of future fraud is null and void.
Statement 2. Waiver of future negligence is valid.
A. True; False
B. False; True
C. Both statements are true.
D. Both statements are false.
ANS: B
11. An obligation without any condition
A. This is an obligation with a period.
B. This is not valid because the performance depends solely upon the will of B.
C. This is a pure obligation.
D. This is an obligation with a potestative period.
ANS: C
12. A binds himself to give B, P1,000 if B sells A’s car and P2,000 if B will kill C.
A. The obligation is null and void.
B. The obligation is partly valid and partly null and void.
C. The obligation is null and void because the first condition is potestative and the second is
contrary to law.
D. The obligation is partly subject to a period and partly conditional.
ANS: B
13. Statement 1. A potesstative period does not make an obligation void.
Statement 2. A potestative condition does not necessarily make an obligation void.
A. True; False
B. False; True
C. Both statements are true.
D. Both statements are false.
ANS: C
18. Statement 1. If the obligation does not fix a period, the court shall fix the period.
Statement 2. Once a period is fixed by the courts, the parties cannot change it.
A. True; False
B. False; True
C. Both statements are false.
D. Both statements are true.
ANS: B
19. Statement 1. In an alternative obligation either party may choose as to who has the right of
choice.
Statement 2. If it is the creditor who has the right of choice, he loses his choice if all the
prestations are alternatively lost by fault of the debtor.
A. True; False
B. False; True
C. Both statements are true.
D. Both statements are false.
ANS: D
20. A and B by their joint act of negligence caused damage to X in the sum of P10,000.
A. The obligation is joint because A and B acted jointly.
B. The obligation is joint because there is plurality of debtors.
C. The obligation is solidary because the law so provides.
D. The obligation is solidary because either A or B is liable for the full amount.
ANS: C
21. 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. This refers to:
A. Divisible and Indivisible Obligations
B. Joint and Solidary Obligtions
C. Obligations with a Period.
D. Pure and conditional Obligations
No1(May1985)
ANS: D
22. This person is liable for the loss of the subject matter by fortuitous event.
A. Creditor C. Both A and B
B. Debtor D. None of them.
No2(Nov1985)
ANS: D
23. A is obliged to give B his Mitsubishi, 4-door sedan Lancer with plate number ABC 123 on
September 30, 2009. On October 10, 2009, A did not yet deliver the car which was totally destroyed
by an earthquake on such date. Is A still liable?
A. No, the obligation is extinguished. The specific thing was lost due to fortuitous event and no
demand to deliver was made by B.
B. Yes, A is in legal delay. B can claim damages.
C. No, even A is already in default and can plead impossibility of performance.
D. Yes, B can instead demand for another car of equivalent value from A.
ANS: A
No2(Oct1989)
24. In a sale, the buyer is entitled and has the right to the fruit of the thing sold from the time:
A. The obligation to deliver the thing sold arises.
B. The sale is perfected.
C. The thing sold is delivered.
D. The fruit of the thing sold is delivered.
No1(may1990)
ANS: C
25. The following is considered fraud or fraudulent.
A. Failure to disclose facts when there is duty to reveal them.
B. The usual exaggeration in trade, when the other party had the opportunity to know the facts.
C. Misrepresentation made not in bad faith.
D. “Caveat Emptor” of let the buyer beware.
ANS: A
26. One is not a requisite in order that obligation shall be extinguished by loss or destruction of the
thing due:
A. When the thing is lost without the fault of the debtor.
B. When the thing lost is generic.
C. When the thing is lost before the debtor has incurred in delay.
D. When the thing lost is specific.
No14oct1994
ANS: B
27. The obligation is demandable on the date of the obligation and shall continue in force up to the
arrival of the day certain.
A. Resolutory period C. Indefinite period
B. Suspensive period D. Legal period
No1may1995
ANS: A
28. This kind of defective contract refers to that contract which is validly agreed upon because all the
essential elements exists, but Courts can nullify it when there is damage or prejudice to one of the
parties to a third person. Its enforcement would cause injustice by reason of some external facts.
A. Voidable Contract C. Rescissible Contract
B. Void or inexistent Contract D. Unenforceable Contract
ANS: C
29. These persons are bound by contracts:
A. Contracting parties C. Assigns
B. Heirs D. All of the them
ANS: D
30. Essential requisites of a contract:
A. Consent C. Subject
B. Cause D. All of these.
ANS: D
31. When the object of the contract is outside the commerce of man, the contract is:
A. Remissible C. Unenforceable
B. Voidable D. Void
ANS: D
32. It is a contract wherein a person binds himself to a creditor to fulfill the obligation of the
principal debtor in case the latter should fail to do so:
A. Guaranty C. Pacto Comisorio
B. Suretyship D. None of the three
ANS: A
33. Contracts are effective and binding only between the parties, their assigns and their heirs. Three
of the following enumeration are exceptions as provided by law which does not belong to the
exception?
A. Where there is stipulation in favor of a third party.
B. Where one of the parties to the contract dies and thereafter a suit is filed on the basis of the
contact.
C. Where the obligations arising from contract are not transmissible by their nature.
D. Where the obligations arising from the contract are not transmissible by stipulation or by
provision of law.
ANS: B
34. A solidary obligation is one in which each of the debtors is liable for the entire obligation or debt,
and each of the creditors is entitled to the entire credit. Obligations shall also be considered solidary
under the three following exceptions. Which does not belong to the exception?
A. When solidary is expressly stipulated in the obligation.
B When the prestation is indivisible and there are two or more debtors and creditors.
C. When the law expressly provides solidarity.
D. When solidarity is required from the nature of the obligation.
ANS: B
35. It is a contract wherein a person binds himself to render some service or to do something in
representation or on behalf of another, with the consent or authority of the latter.
A. Agency C. Contract of piece of work
B. Contract of service D. None of the three
ANS: A
36. A and B who are both unemancipated minors entered into a contract. The contract entered into by
and between them is:
A. Rescissible C. Voidable
B. Unenforceable D. Void
ANS: B
37. Which of the following contracts cannot be ratified?
A. Those whose cause or object did not exist at the time of the transaction
B. Unauthorized contracts
C. Those where both parties are incapable of giving consent.
D. Those that fail to comply with Statute of Frauds
ANS: A
38. The creditor shall have a right to indemnify for damages when, through the fault of the debtor, all
the things which are alternatively the object of the obligation have been lost or compliance of the
obligation has become impossible. The indemnity shall be fixed taking as a basis
A. The value of the least expensive thing
B. The value of the most expensive thing
C. The value of the last thing which disappeared
D. The value of the first thing which disappeared
ANS: C1
39. Mr. Santos sold his car to Mr. Garcia for P150,000.00. No date is fixed by the parties for the
performance of their respective obligations. The obligation of Mr. Santos is:
A. To deliver the car immediately as there is a perfected contract
B. To deliver the car upon the payment by Mr. Garcia of P50,000.00
C. To rescind the contract since there is no time fixed for the delivery and payment of the car.
D. To deliver the car within a reasonable time after the demand of Mr. Garcia to deliver.
ANS: B
40. When the subject matter of a contract is lost through fortuitous event, who is liable?
A. The debtors C. The creditors
B. None of them D. Both creditor and debtor
ANS: B
41. The buyer of a thing has the right to the fruits of the thing:
A. From the time the thing bought is delivered
B. From the time the sale is perfected
C. From the time the obligation to deliver the thing bought arises.
D. From the time the fruits are delivered.
ANS: B
42. Three (3) of the following may be valid objects of a contract, except:
A. All that are within the commerce of man.
B. All services which are not contrary to law.
C. Impossible things or services.
D. All rights that are transmissible.
ANS: C
43. A contract executed by two (2) parties and one (1) of the parties in not capable of giving consent
is:
A. Voidable C. Void
B. Rescissible D. Unenforceable
ANS: A
44. Three (3) of the following contracts are void. Which one is valid?
A. Oral contract of partnership of three (3) partners and capital contribution is more than
P3,000.00 in cash.
B. Written contract contemplating impossible services.
C. Oral contract of partnership where real estate is contributed as capital.
D. Agent’s authority to sell property given orally.
ANS: A
45. These are the basic principles or characteristics of a contract. Which is exception?
A. Freedom or liberty to stipulate
B. Obligatory force and compliance in good faith
C. Binding on third parties
D. Perfected by mere consent
ANS: C
46. When the period is “on or before a date”, the debtor has the benefit of the period. The benefit is
lost and the obligation becomes demandable when:
A. The debtor attempts to abscond
B. After contracting the obligation, the creditor suspects the debtor to becoming insolvent
C. The guarantee given by the creditor is not acceptable to the creditor
D. Demand by the creditor could be useless
ANS: A
47. Simulation of a contract may e absolute or relative. It is relative when:
A. The parties do not intend to be bound at all
B. The contract is void
C. The parties conceal their true agreement
D. Answer not given
ANS: C
48. The proper remedy is annulment of contract and not reformation when:
A. Mistake, fraud, inequitable conduct, or accident has prevented a meeting of minds of the
parties.
B. A mutual mistake of the parties causes the failure of the instrument to disclose their real
agreement.
C. One party was mistaken and the other knew or believed that the instrument did not state their
real agreement, but concealed the fact from former.
D. Answer not given.
ANS: A
49. The action to annul a voidable contract, such as a contract where one of the parties is incapable
of giving consent to the contract, is extinguished by:
A. Novation C. Ratification
B. Rescission D. Answer not given
ANS: C
50. A contract or receipt for the transport of goods and their delivery to the person named therein to
order or bearer is a:
A. Warehouse receipts C. Bill of lading
B. Dock warrant D. Answer not given
ANS: C
51. Cecilio kidnapped and tortured Eduardo for refusing to sell his (Eduardo’s) land to Cecilio.
Eduardo who could no longer bear the physical pains inflicted upon him signed a document of sale
in favor of Cecilio. This sale is
A. Void C. Valid
B. Voidable D. Answer not given
ANS: B
52. Choose the contracts which are voidable.
A. Those undertaken in fraud of creditors when the latter cannot in any manner collect the
claims due them.
B. Those where the consent is vitiated by mistake, violence, intimidation, undue influence of
fraud.
C. Those whose subject is outside the commerce of man.
D. Those where both parties are incapable of giving consent to a contract.
ANS: B
53. A contract is in the stage of conception when:
A. There is meeting of the minds
B. Negotiations is in progress.
C. The parties come to the agreement
D. The contract is perfected.
ANS: B
54. In an obligation where only one (1) prestation has been agreed upon, but to extinguish the
obligation the debtor is allowed and does render another substitute, the obligation is:
A. Facultative obligation C. Alternative obligation
B. Simple obligation D. Conjoint obligation
ANS: A
55. Mr. Gamboa owes Mr. Evangelista P100,000. Gamboa knows that on maturity date, he will not
be able to pay Evangelista, and in order to prevent attachment of his property by Evangelista,
Gamboa, before maturity of his debt, executes a contract pretending to sell to Mr. Santiago his
property. Which of the following statements is correct/
A. The contract is not valid for lack of consideration
B. The contract is binding between Gamboa and Santiago
C. The contract being simulated and executed to defraud Evangelista is void.
D. Mr. Evangelista can seek rescission of the fictitious contract.
ANS: D
56. A owes solidary creditors XYZ P10,000. There is remission of the debts when:
A. X borrows P10,000 from A.
B. X waives the whole obligation of P10,000 to A.
C. Z makes a will giving the P10,000 debt to A as legacy.
D. Y tells A that instead of paying P10,000, A shall deliver a ring to Y.
ANS: B
75. In order that an obligation may be extinguished by the loss of the thing, the following requisites
must be present:
I. The obligation to deliver a specific or determinate thing;
II. The loss of the thing occurs without the fault of the debtor;
III. The debtor is not guilty of delay
A. I and II only C. I, II and III
B. II and III only D. I and III only
ANS: C
76. There are cases, when the loss of the specific thing even in the absence of fault and delay will not
exempt the debtor from liability. They are:
I when the law so provides
II. when the stipulation so provides
III. when the nature of the obligation requires the assumption of risk
IV. when the obligation to deliver a specific thing arises from a crime.