LAW1 FINALS REVIEWER

1. One of the distinctions between a facultative obligation and an alternative obligation is that in the
latter: (A) only one thing is principally due.

(B) the right of choice belongs to the debtor alone.

(C) if the obligation to give the principal thing is void, the obligation to give the substitute is also void.
(D) if all prestation except one is impossible, that which is possible must still be given.

2. S offers to sell his car to B for P125,000.00 cash. B accepts the offer but is willing to pay only
P120,000.00.

a. The contract was perfected at the price of P120,000.00

b. The contract was perfected at the price of P125,000.00

c. The contract was perfected at the price of P122,500.00, the average price of the offer and the
acceptance.

d. The contract was not perfected because the acceptance by B was qualified and it constituted a

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3. R and C both undertook a contract to deliver to S in Manila a boat docked in Subic. Before they could
deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall not
exempt R and C from their obligation. Owing to the loss of the motor boat, such obligation is deemed
converted into one of indemnity for damages. Is the liability of R and C joint or solidary?

a. Solidary since R and C failed to perform their obligation to deliver the motor boat.

b. Joint since the conversion of their liability to one of indemnity for damages made it joint.

c. Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are
entitled.

d. Solidary or joint upon the discretion of S.

4. A, B, C, and D, owes E, F, G and H P40,000. How much E can collect from A if there is no agreement if
their obligation is joint or solidary?

a. P40,000

b. P10,000

c. P5,000

d. P2,500
5. One is not a requisite needed 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 lost is specific

d. When the thing is lost before the debtor has incurred delay

6. One is an incorrect distinction between solidarity and indivisibility.

a. Solidarity refers to the legal tie whereas indivisibility refers to prestation.

b. Plurality of subject is indispensable in solidarity unlike in indivisibility.

c. In case of breach, solidarity character of obligation remains, but the indivisible character of the
obligation is terminated.

d. Solidarity refers to the parties of the obligation and the prestation whereas indivisibility refers to the
vinculum juris.

7. 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 Php500

8. 1st Statement -Option money is recoverable if the offeree will choose not to purchase the thing being
offered for sale.

2nd Statement - The vendor is bound to deliver the thing sold but not its accessions.
A. Both statements are wrong. C. 1st statement is correct, 2nd statement is wrong.
B. Both statements are correct. D. 1st statement is wrong, 2nd statement is correct

9. The insurer refuses to pay the insurance claim by the insurer on the ground that the loss was due to
fire which is a fortuitous event is:

a. Correct for no person shall be responsible for damage or injury due to fortuitous event

b. Incorrect for the very nature of the insurer is he assumed the risk of loss
c. Incorrect for his obligation is derived from contract which is the law between the parties

d. Both B and C

10. It refers to a joint obligation:

(A) One in which each debtor is liable for the entire obligation, and each creditor is entitled to demand
the whole obligation.

(B) One in which either one of the parties is indispensable and the other is not necessary.

(C) One in which the obligation is a resolutory condition of the other, the non-fulfillment of which
entitles the other party to rescind the contract.

(D) One on which each of the debtors is liable only for a proportionate part of the debt and each creditor
are entitled only for a proportionate part of the credit.

11. Three of the following statements are true. Which one is false?

a. Not only the parties, but their heirs and assigns are bound by their contract.

b. Obligations arising from contracts have the force of law between the contracting parties and must be
complied with in good faith.

c. Fraud committed in the performance of an obligation gives the injured party the right to annul the
contract.

d. Generally, the debtor is not liable for the nonperformance of his obligation due to fortuitous event

12. Which statement is correct?

1. Accession is the right of an owner of a property to everything which is produced thereby or which is
incorporated or attached thereto either naturally or artificially.
2. Natural, industrial and civil fruits belong to the owner.

a. statement 1 is correct; statement 2 is incorrect.

b. Both statements are incorrect.

c. Both statements are correct.

d. Statement 1 is correct; statement 2 is correct.

13. Whoever pays for another without the knowledge or against the will of the debtor

a. May recover only insofar as the payment has been beneficial to the debtor

b. May recover from the debtor what he has paid plus damages

c. May demand from the debtor what he has paid

d. May not recover anything from the debtor

14. Demand is necessary in order that delay may exist in one of the following. This is

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

b. When one of the parties in reciprocal obligation fulfill his obligation

c. When the nature and circumstances of the obligation it appears that the designation of the time when
the thing is to be delivered or the service to be rendered is the controlling motive of the contract.

d. When there is a stipulation or the parties so agree

15. Case 1-X hired Y for P100,000 to kidnap Z, and he paid Y P50,000 in advance. Before Y could kidnap
Z, X relented and stopped Y from performing the contract. The court may not allow X to recover from Y
the P50,000 paid in advance. Case 2-X, at gun point, compels Y to marry him. Since the contract of
marriage is voidable, either X or Y has the right to file the action for annulment. Determine whether:

a. First case is true, second case is false.

b. Both are true.

c. Both cases are false.

d. First case is false, second case is true.

16. Which of the following contracts is valid?

a. Oral contracts of agency giving authority to an agent to sell the land belonging to the principal.

b. Oral contract of sale of an immovable property entered into by an agent who was given authority
orally by the principal

c. Oral agreement to answer all expenses for the wedding reception if Melanie marries Noel.

17. Which of the examples given below can legal compensation take place?

a. A owes B P1, 000 due on June 30, 1993. B owes A P1, 000 due on June 30, 1993 but C has filed and
adverse claim against A.

b. A owes B P1, 000 payable October 31, 1993. B owes A P1, 000 due on October 31, 1993.

c. A owes B P1, 000 with C as guarantor. B owes C P1, 000.

d. A owes B P1, 000 payable May 31, 1993. B to deliver to A 2 piculs of sugar worth P1, 000 on May 31,
1993.
18. G, the guardian of M, a minor, sold the fish harvested from the fishpond of M for P7,400. The fish,
however, had a value of P10,000.

a. The sale is void because the object is outside the commerce of men b

b. The sale is rescissible because M suffered lesion by more than one-fourth of the value of the fish sold.

c. The sale is unenforceable because G sold the fish without approval of the courts

d. The sale is voidable because M is a minor 13

19. I. Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless
the debtor proves the contrary.

II. Except in cases specified by law, lesion or inadequacy of cause shall not invalidate a contract, unless
there has been fraud, mistake or undue influence.

A. True; True B. True; False C. False; True D. False; False

20. A is obliged to deliver to B his Honda civic car or a goat’s milk taken from a cow or one kilo of shabu
or his diamond ring on September 1, 2021. However, A can substitute the prestation with his house and
lot. The right of choice belongs to B. Before the communication of choice, all the prestation except the
house and lot, were destroyed by fortuitous event. What happened to the obligation of A to B?

a. A's obligation is extinguished.

b. A is liable to deliver the substitute

c. A is liable to pay the value of any of the prestation at the choice of B.

d. A's obligation is still subsisting

21. In order that fraud may make a contract voidable:

a. It may be incidental but both parties should not be pari delicto

b. It should be serious and should have not been employed by both contracting parties

c. It may be serious and the parties must be in pari delicto

d. It may be incidental but should have been employed by both parties

22. A and B agreed on a certain contract, but A fraudulently made a document reciting another kind of
contract. Later, both A and B died. Which is correct?

a. Only the son of A may bring an action to reform the instrument

b. Only the son of B may bring an action to reform the instrument

c. Neither the son of A or the son of B may bring an action to reform the instrument

d. Either the son of A or the son of B may bring an action to reform the instrument

23. L bought a business class ticket from A Airlines. As she checked in, the manager downgraded her to
economy on the ground that a Senator had to be accommodated in the business class. L suffered the
discomfort and embarrassment of the downgrade. She sued the airlines for quasi-delict but A Airlines
countered that, since her travel was governed by a contract between them, no quasi-delict could arise.
Is the airline correct?

a. Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation between the
parties.

b. Yes, since the facts show a breach of contract, not a quasi-delict.

c. No, the breach of contract may in fact be tortious as when it is tainted as in this case with
arbitrariness, gross bad faith, and malice.

24. On October 4, 2021, A is indebted to B for P50,000 for a 20-day period. 1 point A proposed to B that
X will pay A's debt and that A will be free from all liabilities. B and X agree to the proposal. On October
25, 2021, X became insolvent. At the time of delegation, X was already insolvent but this was not known
to A. The insolvency is not public knowledge. So, B sues A on the ground that it was A who made then
proposal that A guaranteed X's solvency. Decide.

a. A is not liable because he does not know the insolvency of X at the time of delegation and neither was
the insolvency of public knowledge.

b. A is liable because X agree to the proposal to make himself solidarity liable for the obligation.

c. A is liable because he did not exercise due diligence in determining the insolvency of X.

d. A is liable because he is presumed to have guaranteed X's solvency.

25. A, B, C, D and E made themselves solidarily liable to X for P50,000. When the latter demanded
payment from A, the latter refused to pay on the ground of the condonation of C's share. Decide.

a. A is not liable for the share of C P10,000

b. A is liable but for P10,000 only because of C's share condonation

c. A is not liable for their liability is solidary and condonation extinguishes the whole obligation

26. D, a professional singer, agreed to sing for a fee of P20,000 at the birthday party of C who was a fan
of D. Due to numerous commitments, D could not go to the birthday party of C. So he sent X, another
professional singer who was known to sing better than D, to sing at C's birthday party, and informed C
that the latter needed to pay only P10,000. Which is CORRECT?
a. D may validly assign his obligation to sing because the reduced fee was advantageous to C.

b. C cannot refuse the performance of the obligation by X because the obligation to sing is transmissible
since it would not require much effort on the part of either D or X who are both professional singers.

c. D may not validly assign his obligation to sing because it is personal in nature.

d. D may validly assign his obligation to sing because X could perform the obligation better than him.

27. 1st Statement: When a fortuitous event concurs with a person's negligence resulting to a loss, he is
still exempt from liability. 2nd Statement: The creditor has a right to the fruits of the thing from the time
ownership is transferred.

a. Both statements are false.

b. Both statements are correct

c. Only the first is correct

d. Only the second is correct

28. Which is true? 1. 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. II.
The debtor of a 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.

a. True, False

b. Both are true

c. False, True

d. Both are False

29. On June 16, 2021, A obliged himself to give to B his motorcycle. There was no delivery until July 15,
2021 when the garage of the motorcycle collapsed due to a strong typhoon and the motorcycle was
totally destroyed. Is A still liable?

a. No, because there was no demand by B to deliver the motorcycle and the specific object was lost due
to fortuitous event. The obligation is extinguished.

b. No, even if A was already in default, he could plead impossibility of performance.

c. Yes, the obligation to deliver the motorcycle is changed to pay the equivalent value

30. A obliged himself to give B a car if B places the top ten in the CPA Board Exam. Subsequently, they
agreed that A will give B the car if B merely passes the CPA Board. This is an example of:
a. Implied novation b. Personal novation c. Real novation d. Mixed novation

31. A pays for B's transportation fare, without B's knowledge and later discovers that B was entitled to
half-fare. Which is not correct?

a. A can recover the half-fare from B

b. A can recover ½ from B and 1/2 from the carrier

c. A can recover the half fare from the carrier

d. A can recover half-fare from B only

32. To cancel a contract and restore the parties to their original positions * 1 point before the contract,
the parties should execute a

Ans. Rescission

33. The stipulation in a contract to the effect that the debtor should remain as a servant in the house
and in the service of 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 and morality.

d. Contrary to obligations of contracts rule.

34. R obliged herself to give J 1 dozen of eggs on January 15, 202 When the date arrived, R failed to
deliver despite repeated demands from J. J's remedy is:

a. Ask a 3rd person to deliver the eggs to him but chargeable to R

b. Compel R to deliver eggs plus damages

c. Compel R to pay the amount of the eggs

d. Rescind the contract

35. Which of the following must be in writing to be enforceable as required by the Statute of Frauds?

a. A contract whereby one agrees to pay another's debt if the latter defaults in his payment

b. A subscription for 100 shares of stock of a corporation at P100.00 per share

c. A contract for the construction of a building scheduled to begin 3 months after the execution of the
contract
d. A contract for the lease of an agricultural lot for a period of 8 months

36. The creditor shall have a right to indemnity 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 the value of the

a. Last thing which disappeared

b. Most expensive thing

c. Any of the things which disappeared

d. Least expensive thing

37. Mr. C sold his horse for P100,000.00 to Mr. N. There was no fixed date for the performance of the
obligations of both parties. The obligation of Mr. C as vendor is:

a. To rescind the contract because no time or date is fixed for the performance of their respective
obligations.

b. To deliver the horse after demand.

c. To wait for Mr. N to pay P100,000 and deliver the horse.

d. To deliver the horse as this is a perfected contract.

38. On January 15, 2021, A obliged himself to give B his only cow or his only dog or his only cat on
December 25, 2021. On July 4, 2021, the cow died after giving after birth to a young cow. Two months
later, the cat died due to the fault of A. And on November 1, 2021, the dog died due to a fortuitous
event. Which of the following is true aside from the clear fact that A is not a good pet owner?

a. A is liable for the value of the cat plus damages

b. The obligation of A is extinguished

c. B is entitled to the young cow having been born after the perfection of contract

d. B can require A to replace the cat by another cat which is equally satisfactory

39. A owes B P10,000. A proposed to B that C will pay A's debt and that A will be released from all
liabilities. B and C agreed to the proposal. Later, when B tries to collect from C, he finds out that C is
insolvent. It was proved that at the time of delegacion, C was already insolvent but this was not known
to A, neither was the insolvency of public knowledge. Is A still liable?

a. Yes, because the initiative came from A

b. No, because there is delegacion

c. Yes, because there is delegacion

d. No, because the insolvency was either of public knowledge nor known to A at the time he delegated
his debt

40. Three of the following contracts are void. Which one is not?

a. Oral contract of partnership where real estate is contributed as capital

b. Oral contract of partnership of three partners and capital contribution is more than P3,000 in cash

c. Written contract contemplating impossible services

d. Agent's authority to sell land is given orally.

41. Example No. 1: W 16 years old sold his house valued at PIM for P50,000 * 1 point or a lesion by more
than one-fourth of the value of the said house. Example No. 2: G, guardian of W, sold W's house valued
at P50,000 for P37,500 or a lesion of one-fourth of the value.

a. Rescissible; Voidable

b. Rescissible; Unenforceable

c. Voidable; Rescissible

d. Voidable; Valid perfectly

42. I. All things which are not outside the commerce of men, excluding future things, may be the object
of a contract. II. All rights which are not intransmissible may also be the object of contracts. III. All
services which are not contrary to law, morals, good customs, public order, or public policy may likewise
be the object of a contract.

a. False; False; True

b. False; True; True

c. True; False; True

d. True; True; True

43. A obliged himself to deliver to B his cellphone or as a substitute he may deliver his cute kitten. After
substitution was made, the former was lost due to A's fault

a. A will simply deliver his cute kitten plus damages for the loss of the cellphone

b. Obligation was extinguished

c. The loss has no effect to the obligation, obligation to deliver the latter will subsist

d. A is liable and must pay damages

44. S offers to sell his house to B for P100,000. B asks him if he would accept P80,000. Which of the
following is correct?

a. B's response is a counter offer effectively terminating the P100,000 offer and instigating an offer for
P80,000

b. Because of ambiguity, both offers are terminated by operation of law

c. B's response is more of inquiry, the P100,000 offer of S is still in force

d. B's response is a rejection of the P100,000 offer, and there is no offer for P80,000 because it is too
indefinite to be an offer

45. P entered into a written agreement to sell a parcel of and to S. At the time the agreement was
executed. P had consumed alcoholic beverages. P's ability to understand the nature and terms of the
contract was not impaired. S did not believe that P was intoxicated The consent is

a. Void as a matter of law

b. Voidable on P’s option

c. Voidable S’s option

d. Legally binding on both parties

46. A sold to B 1000 baskets of lanzones at P600 a basket. Thereafter, A can only deliver 900 baskets
and offered this number to B and no more, but at P700 each. Decide

a. B can accept 900 baskets but pay P550 for each

b. B must pay for 1000 baskets but at P500 each

c. A can require B to accept 900 at P700 each

d. B can refuse to accept delivery of the 900 baskets without liability

47. A has in his possession some merchandise to be delivered to the person who presents the proper
receipt. B and C each armed with a receipt, ask A to turn over the property to one of them. An
examination of the receipts reveals that they are exactly of the same kind. A does not know to whom he
should deliver the property. So, he files an action in court by means of which B and C will be able to
settle their conflicting rights. This is:
a. An injunction

b. An interpleader

c. A garnishment

d. A consignation

48. Mr. G owes Mr. E P100,000. G knows that on maturity date, he will not be able to pay E, and in order
to prevent attachment of his property by E, G, before maturity of his debt, executes a contract
pretending to sell to Mr. S his property. Which of the following statements is correct?

a. The contract is not valid for lack of consideration

b. Mr. E can seek rescission of the fictitious contract.

c. The contract being simulated and executed to defraud E is void

d. The contract is binding between Mr. G and Mr. S.

49. Here, defense of a good father of a family is not a proper defense:

a. Culpa Aquiliana

b. Culpa aquiline delicto

c. Culpa Criminal

d. Culpa Contractual

50. Which of these is not a conditional obligation?

a. D is to pay C P1,000,000 if he finishes his LL.B. at the V.P. College of law.

b. None of the above

c. D will pay C P1,000,000 twenty days after he passes the C.P.A. exams for October 2008.

d. D is to pay C P 2,000,000 ten days after his 80th birthday.

e. D will pay C P500,000 as soon as his financial means will permit him to do so. A period with a
suspensive effect

51. C offered to sell his house and lot for P2M to B. B could not make up his * 1 point mind so he asked
that he be given 30 days to decide. C agreed. After 15 days, C raised the price to P2.5M. Assume that B
decided to buy the house and lot the following day, can he compel C to accept the P2M price and deliver
the house and lot?

a. No, because B agreed that C may change his mind later on.
b. No, there was no acceptance of the original offer.

c. Yes, C cannot change his offer without the consent of B.

d. Yes, there was already a perfected contract of sale.

52. On July 15, 2021, X entered into a contract with Y. On January 10, 2021, X discovered that Y
employed fraud to induce him to enter into the contract, which had he known he would not have
entered into. The action for annulment of contract must be brought:

a. within 3 years from January 10, 2021.

b. within 4 years from July 15, 2020.

c. within 3 years from the time of the fraud.

d. within 4 years from discovery of the fraud.