1."I'll give you my car one year after your death.

" The obligation is

a. valid, but disregard the condition. c. valid, the obligation is conditional.
b. void, not legally possible. d. valid, because the event is sure to
come.

2. The kind of compensation which may only be raised by the creditor and not by the debtor in the
obligation to give gratuitous support:
a. legal compensation c. conventional compensation
b. facultative compensation d. judicial compensation

3. Statement No 1 Legal compensation takes place by operation of law even if the parties may not
be aware of it.
Statement No 2 The indivisibility of an obligation necessarily implies solidarity.
a. Both statements are true.
b. Both statements are false.
c. Statement No. 1 is false while statement No. 2 is true.
d. Statement No. 1 is true while statement No. 2 is false.

4. Statement No 1 Responsibility arising from fraud is demandable in all obligations. A waiver of an

action for future fraud is void.
Statement No 2 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 confirmity with the provisions of laws.
a. Both statements are false. c. No 1 is true, No. 2 is false.
b. No. 1 is false, No. 2 is true. d. Both statements are true.

5. Statement No 1 D obliged himself to give C a specific car tomorrow. If D failed to deliver

tomorrow after demand is made, C may compel D to do his obligation and may ask for
damages.
Statement No 2 D obliged himself to deliver a car to CJ tomorrow. If D failed to deliver tomorrow
after demand is] made, C's right is to ask a third person to deliver a car to him at the expense of
D plus damage.
a. No. 1 is false; No. 2 is true. c. Both are false.
b. No. 1 is true; No. 2 is false. d. Both are true.

6. S owns specific ring and sells it to B for P10,000. B paid S the price, and S promised to deliver
the ring five (5) days after. After the sale, S gets a loan from X and pledged the ring in a private
instrument.
Statement 1 Between B and X, B has got a better title because the pledge did not appear in a
public instrument.
Statement 2 However, if S delivers the ring to X, X will have a better title because there was
delivery.
a. Both are true. c. Both are false.
b. No. 1 is false; No. 2 is true. d. No. 1 is true; No. 2 is false.
 7. Statement No 1 The receipt of the principal obligation without reservation as to the payment of
interest shall raise a conclusive presumption that the interest is also paid.
Statement No 2 The receipt of the latter installment of a debt without reservation as to prior
installment, shall not raise a conclusive presumption that the prior installment is also paid.
a. No. 1 is true; No. 2 is false. c. Both are false.
b. Both are true. d. No. 1 is false; No. 2 is true.

8. On June 1, 2010, S sold to B the former's horse for P10,000. S promised to deliver on June 25,
2010, while B did not promise when to pay.
a. B can demand delivery from S anytime after June 1, upon payment of the price of
the sale.
b. Obligation of B to pay is subject to the condition that S will deliver the horse.
c. S can demand from B payment anytime from June 1, because B's obligation is not
subject to any condition.
d. S cannot demand payment until he delivers the horse.

9. The loss or harm suffered by one person on his property is called:

a. Injury c. Damage
b. Damages d. None of the above

10. The delivery and transmission of ownership of thing by the debtor to the creditor as an accepted
equivalent performance of an obligation is called:
a. Remission c. Dacion en pago
b. Payment by cession d. Consignation

11. A and B are solidary debtors of X and Y, solidary creditors to the amount of P4,000. On the due
date, X renounced in favor of A the entire obligation. Which of the following is correct?
a. Y can collect from XP2,000.
b. Y can still collect from A or B P2,000.
c. Any of the three.
d. B shall give A P2,000.
e. None of the above.

12. The extinguishment of obligations when two persons, in their own right, are debtors and
creditors of each other is called
a. Merger c. Remission
b. Compensation d. Novation

13. Meeting in one person of the characteristics of both debtor and creditor in one and the same
obligation extinguishes the obligation by way of:
a. compensation or set-off c. merger of confusion
b. condonation or remission d. novation

14. Three of these are characteristics of payment by cession. Which is the exception?
 a. complete or partial insolvency.
b. one debtor, one creditor.
c. abandonement of all the debtor's properties except those exempt from execution.
d. more than one debt.

15. A source of obligation where there exists criminal negligence

a. culpa aquiliana c. culpa delictual
b. quasi-contract d. culpa contractual

16. Which of the following obligations is not subject to a period?

a. payable whenever "I like it" c. payable soonest
b. payable "when my means permits me d. payable "little by little"
to"

17. The following are the requisites of an obligation, except:

a. efficient cause. c. demand.
b. active subject, creditor, or obligee. d. passive subject, debtor or obligor.

18. Obligations may arise from any of the following, except:

a. quasi-contracts. c. contracts.
b. law. d. prestation.

19. One of the following is a determinate thing. Which is it?

a. a horse.
b. a ring with diamond embellishment.
c. a Toyota car with engine no. 12345, body no. 34890 and plate no. ABC 123.
d. a cow.

20. D borrowed P50,000.00 from C. C dies before he has collected the debt leaving S, his son, as
heir. Which of the following statements is correct?
a. S cannot collect because the law prohibits the transmission of the credit right.
b. S can collect from D although D and C did not agree that the credit right will pass
on to the heirs of C.
c. S cannot collect because the credit right is personal to C.
d. S can collect only if D and C agreed that the credit right will pass on the heirs of C.

21. An obligation ceases to be alternative and becomes a simple obligation in the following cases,
except when:
a. among the several prestations that are due only one is practicable.
b. three prestations are due but one of them is unlawful or impossible.
c. the debtor has communicated his choice to the creditor.
d. the right of choice has been expressly granted to the creditor and his choice has
been communicated to the debtor.
22. The following obligations are divisible, except an obligation:
a. which has for its object the accomplishment of work by metrical units.
b. which has for its object the execution of a certain number of days of work.
c. which by its nature is susceptible of partial performance.
d. to give definite things.

23. The following statements concerning payment by cession are true, except one. Which is it?
a. Payment by cession extinguishes the obligations only to the extent covered by the
proceeds of the sale of the debtor's properties.
b. The creditors become the owners of the properties of the debtor that were ceded to
them.
c. Cession affects all the properties of the debtor except those exempt from execution.
d. The debtor must be insolvent.

24. Statement 1: The debtor does not lose the right to make use of the period if the security that he
has given is lost due to a fortuitous event.
Statement 2: The period in an obligation always refers to the future.
a. Both statements are false c. Statement II is true
b. Statement I is true d. Both statements are true

25. Statement I: In a facultative obligation, the loss of the substitute through a fortuitous event before
the substitution has been made by the debtor, shall have no effect on the debtor's obligation to
deliver the principal thing.
Statement II: When there are two or more debtors and/or two or more creditors in one and the
same obligation, the obligation is presumed to be a solidary obligation.
a. Statement I is true c. Statement II is true
b. Both statements are false d. Both statements are true

26. Statement I: In a joint indivisible obligation, a demand made by one of the joint creditors against
all the joint debtors is a valid demand.
Statement II: A solidary debtor who obtains remission of the whole obligation is entitled to
reimbursement from his co-debtors.
a. Both statements are true c. Statement II is true
b. Statement I is true d. Both statements are false

27. Statement I: The debtor of a thing may compel the creditor to accept a different one if the, latter
is more valuable than that which is due.
Statement II: If an obligation is physically divisible, the debtor may compel the creditor to accept
partial payments.
a. Both statements are false c. Statement I is true
b. Statement II is true d. Both statements are true

28. Consignation alone without any tender of payment is sufficient in the following cases, except:
a. when the creditor is absent or unknown or does not appear at the place of payment.
 b. when the creditor presents the title to the obligation for collection.
c. when without just cause, the creditor refuses to give a receipt.
d. when two or more persons claim the same right to collect.

29. M owes P P10,000.00. The obligation is evidenced by a promissory note. Subsequently, P

assigned the note to A, A to B, B to C, and C back to M. The obligation of M is extinguished by:
a. The obligation is not extinguished because there was no payment.
b. confusion.
c. condonation.
d. compensation.

The next item(s) is/are based on the following

On July 1, 2015, D obliged himself to give C P50.000.00 if C will marry X on or before December
31, 2015.

30. Refer to the facts above. Which of the following statements is incorrect?
a. The obligation of D is extinguished on December 2, 2015 if X dies on the said date
and C has not yet married X.
b. The obligation of D is demandable if C marries X on or before December 31, 2015.
c. The obligation is demandable if C marries X on January 1, 2016.
d. The obligation of D is extinguished if it is already January 1, 2016 and C has not yet
married X.

31. Statement 1. A third person who has an interest in the fulfillment of the obligation can compel the
creditor to accept his payment.
Statement 2. D owes C P20,000.00 to secure the payment of which D pledged a diamond ring.
Subsequently, this ring was voluntarily returned to D by C. The obligation of D to pay C P20,000.
is impliedly condoned and therefore extinguished.
a. Both are true c. Both are false
b. No. 1 is false; No. 2 is true d. No. 1 is true; No. 2 is false

32. Statement 1. Tender of payment alone in certain cases may extinguish an obligation.
Statement 2. As a general rule, the law allows interest on interest.
a. Both are false c. No. 1 is true; No. 2 is false
b. Both are true d. No. 1 is false; No. 2 is true

33. Three of the following statements are true. Which one is false?
a. Fraud committed in the performance of an obligation gives the injured party the right
to annul the contract.
b. Obligations arising from contracts have the force of law between the contracting
parties and must be complied with in good faith.
c. Not only the parties, but their heirs and assigns are bound by their contract.
d. Generally, the debtor is not liable for the non-performance of his obligation due to
fortuitous event.
34. Three of the following statements are true. Which one is false?
a. Obligations arising from contracts have the force of law between the contracting
parties and must be complied with in good faith.
b. Not only the parties, but their heirs and assigns are bound by their contract.
c. Generally, the debtor is not liable for the non-performance of his obligation due to
fortuitous event.
d. Fraud committed in the performance of an obligation gives the injured party the right
to annul the contract.

35. A, B and C are joint and several liable to D amounting to P900,000. D allows C an extension of
two years within which to pay his portion of the indebtedness. In this case:
a. D can compel A or B or C to pay him P600,000.
b. D can demand only P300,000 each from A and B.
c. D can compel only A or B to pay him P600,000.
d. D can compel A or B to pay him the entire P900,000.

36.A commission agent:

a. Generally, cannot sell on credit.
b. Has the option to act in his own name.
c. May be an agente del credere if he receives guaranty commission.
d. All of the above.

37. P appointed A orally as his agent to sell his car for P10,000. A sold the car to X acted in his (As)
name. If upon delivery the car has hidden defects, is P liable?
a. No, because the contract is unenforceable, it is orally entered into.
b. Yes, because the thing belongs to the principal.
c. No, because the agent acted in his name.
d. None of the above.

38. A contract whereby one of the contracting parties obligates himself to transfer the ownership of
and to deliver a determinate thing and the other to pay therefor a price certain in money or its
equivalent is a contract of:
a. barter. c. sale.
b. dacion en pago. d. mortgage.

39. The following are the essential elements of a contract of sale, except:
a. warranty against eviction and against hidden defects.
b. consent of the contracting parties.
c. price which is certain in money or its equivalent.
d. subject matter which should be determinate.

40. One of the following is not a requisite of the object of a contract of sale. Which is it?
a. Vendor must have the right to transfer the ownership of the thing at the time of
sale.
b. It must be within the commerce of men.
 c. It must be licit.
d. It must be determinate or determinable,

41. Santiago sells to Bermejo 500 sacks of rice at P1.000.00 per sack from the stock then stored in
the warehouse of Santiago. Unknown to the parties, the warehouse contains only 480 sacks of
rice. What is the status of the contract between Santiago and Bermejo?
a. The sale is valid up to 480 sacks of rice but rescissible as to the deficiency of 20
sacks of rice by reason of damage suffered by Bermejo.
b. The sale is void since the quantity available is less than the quantity sold.
c. The entire sale is valid up to 500 sacks of rice. Bermejo becomes the owner of the
whole stock available and Santiago must deliver the deficiency of 20 sacks of rice.
d. The sale is valid up to 480 sacks of rice but void as to the deficiency of 20 sacks
of rice.

42. Somera sells to Buenviaje at P50 per gallon 300 gallons of gasoline stored in his truck's tank
which, unknown to the parties, contains 500 gallons gasoline. What is the status of the contract
of sale between Somera and Bermejo?
a. The sale is rescissible because Somera will suffer lesion of more than % of the
value of the whole stock.
b. The sale is valid up to 500 gallons of gasoline. Buenviaje must pay for the
additional 200 gallons of gasoline.
c. The sale is void because the quantity available is more than the quantity sold.
d. The sale is valid up to 300 gallons of gasoline. Buenviaje becomes the owner of
3/5 of the whole stock, while Somera becomes the owner of 2/5 thereof.

43. S and B entered into a contract whereby S transferred to B a specific car for the price of
P200.000.00, while B gave to S P90.000.00 in cash and a diamond ring worth P110.000.00.
The heading of the written contract signed by the parties reads "Contract of Sale".
a. The contract is a valid contract of sale as intended by the parties regardless of
whether the monetary consideration is more or less than the value of the .
property consideration.
b. The contract is a valid contract of barter since the value of the property given is
more than the monetary consideration. The intention of the parties is immaterial.
c. The contract is void because the intention of the parties is void since the value of
the diamond ring is more than the monetary consideration given.
d. The contract is partly a contract of barter and partly a contract of sale.

44. On June 1, 2014, S sold to B 50 units of machines which were scheduled to arrive from Japan
the following day on board the vessel "MT Nippon Maru" The sale was evidenced by an invoice
identifying each machine by serial number. Each machine was priced at P10,000.00. Unknown
to the parties, 30 units were damaged beyond repair by seawater on May 31, 2014. Based on
the foregoing, which of the following statements is incorrect?
a. S has no option to rescind the whole contract or require payment of the remaining
20 units.
b. B may rescind the whole contract.
c. B may demand delivery of the remaining 20 units and pay the price therefor.
 d. S may require payment of the whole shipment from B since S was not aware of
the damage caused on the machines at the time of sale.

45. On May 1, 2014, S sold to B through a private instrument 20 sacks of corn stored in the only
warehouse of S. On May 10, 2014, S delivered the keys to the warehouse to B. The delivery
made by S to B is known as:
a. constructive delivery by legal c. symbolic delivery by traditio clavium.
formalities.
b. traditio brevi manu. d. traditio longa manu.

46. On March 1, 2014, S sold and delivered to B a television set for P10,000.00 "on sale or return"
giving B up to March 16, 2014 within which to return the television set or pay the price. On
March 10, 2014, the television set was burned through no fault of B. Based on the foregoing,
which of the following statements is incorrect?
a. B must bear the loss of the television set.
b. B must pay the price of the television set.
c. The ownership of the television set was transferred to B upon delivery to him.
d. S must bear the loss since the time for the return of the television set had not yet
expired.

47. Baldomero bought a residential house and lot from Sta. Ana Realty for P250,000.00 giving a
down payment of P10,000.00 and promising to pay the balance of P240,000.00 in 20 years in
monthly installments of P1,000.00. After paying 72 installments, Baldomero defaulted in the
payment of the 73rd installment and subsequent ones. Despite the grace period he had earned,
he was not able to make any further payments. Accordingly, Sta. Ana Realty cancelled the sale.
How much cash surrender value is Baldomero entitled to receive?
a. P41,000.00. c. P39,600.00.
b. P45,100.00. d. P36,000.00.

48. Goods are still in transit:

a. when the carrier acknowledges possession of the goods as bailee for the buyer
after the arrival of the goods at the place of destination.
b. if the buyer or his agent obtains delivery of the goods before their arrival at the
appointed destination.
c. if the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or
his agent.
d. if the goods are rejected by the buyer, and the carrier or other bailee continues in
possession of them, even if the seller has refused to received them back.

49. This refers to an encumbrance imposed upon an immovable for the benefit of another
immovable belonging to a different owner.
a. Real estate mortgage c. Pledge
b. Chattel mortgage d. Easement or servitude
50. Three of the following are the requisites in order that the buyer may enforce the seller's liability
for hidden defects. Which one is not?
a. The defects render the thing unfit for the use for which it is intended, or which
diminish its fitness for such use to such an extent that had the buyer been aware
thereof, he would not have bought it.
b. The defects must be capable of determination by an expert.
c. The defects must be existing at the time of sale.
d. The defects of the thing sold must not be patent or visible.

51. The justified refusal of the buyer to accept the goods produces the following effects, except:
a. title to the goods does not pass on to him.
b. buyer has no duty to return the goods, unless otherwise stipulated.
c. buyer shall not be obliged to pay the price.
d. buyer is obliged to constitute himself as depositary until he returns the goods.

52. If a movable property is sold separately to two or more different vendees, ownership shall
belong to the person:
a. who in good faith first paid the purchase price in full.
b. who in good faith first took possession of the property.
c. who in good faith first recorded the sale in the Registry of Property.
d. who in good faith presents the oldest title.

53. A contract of sale is perfected upon:

a. the meeting of the minds on the thing which is the object of the contract and upon
the price.
b. delivery of the object of the contract.
c. demand.
d. compliance with the requirements of the law as to form.

54. It is a contract by virtue of the terms of which the parties thereto promise and obligate
themselves to enter into another contract at a future time, upon the happening of certain events,
or the fulfillment of certain conditions.
a. Contract of option c. Contract of sale
b. Auto-contract d. Contract of adhesion

55. Real mortgage-

a. Is a accessory contract. c. Objects is immovable property.
b. May guarantee future debts. d. All of the above.

56. A thing pledged-

a. May guarantee the debts of another person.
b. Is indivisible even among successors in interest.
c. May secure all kinds of obligation, be they pure or subject to a suspensive or
resolutory condition.
d. Even if stipulated, cannot be appropriated if debt is not paid.
 e. All of the above.

57. S sold to B a specific car for P20,000 payable in four equal installments. S delivered the car to B
but required B to mortgage it back to S to answer for the unpaid installments. B paid the 1st
installment, but the last three he failed to pay. S foreclosed the mortgaged property and sold it
at public auction for P13,000.
a. S can recover from B the balance of P2,000.
b. S cannot recover the deficiency any more even if there is stipulation to that effect
and this is covered by Recto Law.
c. S can recover from B the balance of P2,000, if there is stipulation to the effect.
d. None of the above.

58. Statement 1 D borrowed P100,000 from C, and as a security, he pledged his diamond ring. In
the public instrument executed, there is no description of the ring and no date of pledge
appearing but the ring is delivered to C. If D will sell the ring to X, will X have a better title than
C? Yes, because to him (X) the pledge is not valid and effective.

Statement 2 Any stipulation in a contract of pledge, that if the debt is not paid at maturity, the
thing pledge will be acquired by the creditor at the current market price is valid.
a. Both are true. c. No. 1 is false; No. 2 is true.
b. No. 1 is true; No. 2 is false. d. Both are false.

59. S, minor of 16 years, sold her bracelet to B for P8,000. Later on, B, needing money to pay her
daughter's tuition fee at CPAR plus some allowance for books and personal needs, borrowed
P15,000 from C, and as a security, pledged the bracelet to the latter. B failed to pay C resulting
into the auction sale of the bracelet in favor of P for P10,000 only. Which of the following
statements is correct?
a. If P was a purchaser in bad faith as he knew of the defective title of B over the
bracelet from S, ownership will not pass to him (P).
b. The deficiency of P5,000 may still be recovered by C from B if there is a
stipulation to the effect.
c. C can no longer recover the deficiency of P5,000 from B. The pledge, together
with the sale is valid. The voidable title of B is valid because it is not annulled.
d. The title of B over the bracelet is not valid, hence the pledge, as well as the sale
of said bracelet is likewise defective. The pledgor must be the owner of the thing
pledged.

60. In order to bind third persons, a pledge:

a. must be in a public instrument showing a description of the thing pledged and the
date of the pledge.
b. is sufficient that it be in a private instrument showing a description of the thing
pledged and the date of the pledge.
c. must be recorded with the Register of Deeds.
d. must be accompanied by an affidavit of good faith.

61. The following is required in order that a real mortgage will bind third persons.
 a. The real mortgage must be recorded in the Registry of Property.
b. The real mortgage must be in a public instrument showing a description of the
thing mortgaged and the date of the real mortgage.
c. It is sufficient that the real mortgage be in writing, public or private.
d. The real mortgage must be accompanied by an affidavit of good faith and
recorded with the Registry of Property.

62. A kind of mortgage which lacks the formalities required by law but nevertheless shows the
intention of the parties to secure a debt with real property is known as:
a. legal mortgage. c. voluntary mortgage.
b. conventional mortgage. d. equitable mortgage.

63. A third person who pledges his property to secure another person's debt is released from
liability in the following cases, except:
a. when the creditor voluntarily accepts a movable property in payment of the debt.
b. if an extension of time is granted to the debtor by the creditor with the pledgor's
consent.
c. when the creditor voluntarily accepts an immovable property in payment of the
debt.
d. if through some acts of the creditor, the pledgee cannot be subrogated to the
rights, mortgages and preferences of the creditor.

64. D pledged his 100 shares of stock of San Miguel Corporation to C to secure his debt of
P5,000.00. On due date, D was not able to pay the debt, so C caused the sale of the shares at
public auction. The shares of stock were sold at P4,500.00.
a. The obligation is extinguished even if there is a deficiency of P500.00.
Accordingly, C can no longer recover the deficiency.
b. To extinguish the obligation, C may recover the deficiency even if there is no
stipulation to that effect.
c. The obligation is extinguished only if the proceeds of sale amount to P5,000.00 or
more.
d. To extinguish the obligation, C may recover the deficiency of P500.00 from D if
there is a stipulation to that effect.

65. This refers to the right of a person to retain a thing until he receives payment of his claim in the
cases provided by law such as one who has executed work on a movable.
a. Voluntary pledge. c. Conventional pledge.
b. Chattel Mortgage. d. Legal pledge.

The next item is based on the following

D pledged his computer to secure a loan which he obtained from C. The debt which amounts to
P10,000.00 is due after 60 days. Before the due date, C executed an instrument
abandoning the pledge.'
I. D's debt of P10,000.00 is extinguished.
II. The pledge of the computer is extinguished even if D has not yet accepted the renunciation
of the pledge.
 III. The pledge is not extinguished until C returns the ring to D.
IV. The pledge is extinguished even if C has not returned the ring to C.

66. Based on the foregoing, which is false among the four statements?
a. I and III. c. II and IV.
b. II and III. d. I and II.

67. D borrowed P100,000.00 from C. The loan is secured by a mortgage of T's lot. On due date, D
was unable to pay. Accordingly, C foreclosed the mortgage on the lot and during the public
auction, the lot was sold for P90,000.00.
a. C can recover the deficiency from T.
b. C can no longer recover the deficiency.
c. C can recover the deficiency from D.
d. C can recover the deficiency from both D and T.

68. Pledge and real mortgage are similar in what respect?

a. The fact that third persons may pledge or mortgage their property to secure
another person's debt.
b. The object of the contract.
c. Recovery of deficiency.
d. Binding effect against third persons.

69. D borrowed P20,000.00 from C. To secure the obligation, D pledged his ring to C. Before the
due date, C executed a public instrument stating that he was abandoning the pledge and
informed D about it. In the meantime, the ring remained in the possession of C.
a. C must return the ring to D to extinguish the pledge.
b. D must accept the renunciation in order to extinguish the pledge.
c. D's loan obligation is extinguished by reason of the abandonment of the pledge.
d. The pledge of the ring is extinguished although D does not accept the
renunciation or has not yet received the ring from C.

70. Mary Montes and Melany Manalo obtained a loan of P100,000.00 from Patricia Palma. The
debtors executed a promissory note which reads as follows:

We promise to pay Patricia Palma or order P100,000.00 on April 30, 2015.

(Sgd) Mary Montes

(Sgd.) Melany Manalo

To secure the loan, Mary Montes pledged her diamond ring, while Melany Manalo executed a
mortgage on her lot.
a. Melany Manalo may demand the cancellation of the mortgage on her lot if she
pays her share of the debt, while Mary Montes's share remains outstanding.
b. Patricia Palma may demand payment of the amount of P100,000.00 from either
Mary Montes or Melany Manalo.
c. Mary Montes may demand the return of her diamond ring if she pays her share of
the debt, while Melany Manalo's share remains outstanding.
d. Both Mary Montes and Melany Manalo must pay the total amount of the debt
before Mary Montes could demand the return of the diamond ring, and Melany
Manalo the cancellation of the mortgage on her lot.

71. Dante obliged himself to give to Carlito his Toyota Altis car with Plate number XYZ899 on July
30, 2018 but he failed to deliver the car on that date. On the following day, a lightning completely
destroyed the car.
a. Carlito can demand for a substitute.
b. Dante is not liable even if he is in default.
c. Dante is still liable for he is in default already.
d. Dante is no longer liable there being no demand, there is no delay and the thing is lost
due to fortuitous event.

72. Culpa levissima under the Roman Law means:

a. Grave negligence
b. Ordinary negligence
c. Slight negligence
d. Super negligence

73. On April 20, 2018, Dante obliged himself to give Carlito P500,000.00 if Carlito will not marry
Sofia on or before December 10, 2018. Which of the following statements is not correct?
a. The obligation of Dante is demandable if Carlito marries Sofia after December 10, 2018.
b. The obligation of Dante is demandable if it is already January 1, 2019 and Carlito has not
yet married Sofia.
c. The obligation of Dante is demandable on December 1, 2018 if Sofia dies on the said date
and C has not yet married Sofia
d. The obligation is extinguished if Carlito marries Sofia on December 15, 2018.

74.The following items pertain to either condition or period:

I. This always refers to future.
II. This is certain to happen
III. This is void when the fulfillment is depend upon the sole will of the debtor
Based on the above information, which of the following is correct?
a. Items I, II, and III pertain to period
b. Items II and III pertain to condition
c. Items I and II pertain to period.
d. Items I and III pertain to condition.

75. A obliged himself to pay B P500,000 on May 31, 2018, A paid B on May 31, 2017 believing
that the obligation was already due and demandable. How much may A recover from B on July
31, 2018?
a. The principal of P500,000 plus the legal interest for one year
b. The principal of P500,000 plus the legal interest for one year and two months
c. Legal interest for one year
d. Legal interest for one year and two months
76.Dante is obliged to give Chris a specific HP HDX500 Laptop computer. The contracting parties
agreed that Dante may give a specific Nokia e90 as substitute. Which of the following statements
is correct?
a. If Nokia e90 is lost through a fortuitous event after the substitution, the obligation is
extinguished.
b. If Nokia e90 is lost through a fortuitous event before substitution, the obligation is
extinguished.
c. If HP HDX500 is lost through a fortuitous event after substitution, the obligation is
extinguished.
d. If HP HDX500 is lost through the debtor's fault after substitution, the debtor shall pay
damages.

77.On December 26, 2014, Antonio, Buddy, Cruzado executed a promissory note to pay Danica
the sum of P6,000,000 jointly and severally with interest of 12% per annum within one (1) year.
However, at the time when the note was executed, Buddy was a minor. In addition, Danica had
given Cruzado an extension of one year to pay:
a. Danica can recover P2,000,000 from Antonio because Buddy minority as well as the
extension given to Cruzado is a partial defense for Antonio.
b.Danica cannot recover any amount from Buddy and Cruzado because the defense is
complete in so far as Buddy and Cruzado is concern.
c.Buddy is liable for the entire P6,000,000 minus his share of P2,000,000 as personal
defense for minority and another P2,000,000 personal defense for the extension given to
Cruzado leaving a balance of P2,000,000. Buddy can later on recover reimbursement
from Antonio and Cruzado.
d. Cruzado is liable for the entire P6,000,000 minus his share of P2,000,000 as personal
defense for extension of time and another P2,000,000 personal defense minority of
Antonio leaving a balance of P2,000,000. Cruzado can later on recover reimbursement
from Antonio and Buddy.

78.Under Central Bank Circular 537 series of 2006 (Dated: July 18, 2006), which of the following
is not legal tender:
a. P10,000 in the denomination of P20 bills
b. P900 in the denomination of P5 coins
c. P750 in the denomination of P1 coins
d. P120 in the denomination of P0.25 coins

79.Mr. Soler is under obligation to deliver to Mr. Buitre a Honda CRV 2017 Model with engine
#122477 and plate No. 112084. When Mr. Soler was on his way to deliver the car, it was destroyed
but Mr. Soler was not yet in legal delay. The law presumes that the loss is due to:
a. The defective nature of the car
b. A fortuitous event.
c. Default on the part of the Debtor
d. The fault or negligence of the debtor.

80.The following are act of liberality, except:

a. Condonation of debt out of pure generosity
 b. Donation inter vivos
c. Donation mortis causa
d. Condonation of debt by reason of past services rendered.

81.The borrower in a contract of loan or mutuum must pay interest to the lender.
a.If there is an agreement in writing to that effect.
b.As a matter of course.
c.If the amount borrowed is very large.
d.If the lender so demands at the maturity date.

82.Ernesto donated a mobile phone worth P32,000 to Hubert orally and delivered the unit to
Hubert who accepted. Which statement is most accurate?
a.The donation is void and Ernesto may get the mobile phone back.
b.The donation is void but Ernesto cannot get the mobile phone back.
c.The donation is voidable and may be annulled.
d.The donation is valid.

83.On February 14, 2015, Honey sent Fresca a written offer to purchase Fresca’s land. The offer
included the following provision: “Acceptance of this offer must be registered or certified mail,
received by Honey no later than February 20, 2015 by 5:00 p.m.” On February 20, 2015, Fresca
sent Honey a letter accepting the offer by private overnight delivery service. Honey received the
letter on February 21, 2015. Which of the following statements is correct?
a.A contract was formed on February 21, 2015
b.Fresca’s letter constituted a counteroffer.
c.Fresca’s use of the overnight delivery service was an effective form of acceptance.
d. Contract was formed on February 20, 2015 regardless of when Honey actually
received Fresca’s letter.

84.Which of the following statements is correct?

a.Offers in interrelated contracts are perfected upon consent.
b.Offers in interrelated contracts require a single acceptance.
c.Business advertisements are definite offers that require specific acceptance.
d.Advertisements for Bidders are only invitations to make proposals and the advertiser
is not bound to accept the highest/lowest bidder, unless it appears otherwise.

85.Reformation of instruments has the following requisites, except:

 a.There having been a meeting of the minds of the parties to a contract.
b.The true intention of the parties is not expressed in the instrument.
c.The instrument failed to express the true intention by reason of mistake, fraud,
inequitable conduct or accident.
d.Execution of a public instrument.

86.The statute of frauds

a.Prevents the use of oral evidence to contradict the terms of a written contract
b.Applies to all contracts having consideration valued at P500 or more.
c.Requires the independent promise to pay the debt of another to be in writing.
d.Applies to all real estate leases.

87.A and B are joint debtors of C for P2,000,000. A’s consent was obtained by C thru fraud.
a.C can collect the entire P2,000,000 from B
b.C can collect the entire P2,000,000 from B but the latter can recover from A
P1,000,000.
c.A is liable only to C for P1,000,000 because he can interpose his defense of fraud.
d.B is liable to C for his share of P1,000,000.

88.Which of the following statement about cause is not correct?

a.Contract without cause is void
b.Statement of a false cause in contract shall render them void.
c.Although the cause is not stated in the contract, it is presumed that it exists and is
lawful
d.When the motive of one contracting party is contrary to law the contract is void.

89.Which of the following statement about fraud is not correct

a.The law does not allow waiver of an action for future fraud.
b.Damages arising form fraud can not be mitigated or reduced by the courts unlike
damages arising from negligence especially if there is contributory negligence.
c.Waiver of past fraud is valid
d.Waiver of future fraud is valid

90.The following contract must be in a public instrument for purpose of convenient. Which is the
exception:
 a.Donation of real property
b.Repudiation of hereditary right
c.Power to administer property
d.Cession of conjugal partnership of gain.

91.A conferment of a direct benefit in a contract between two persons in favor of a third person
who must accept such benefit before the same is withdrawn is known as:
a.Stipulation por autrui
b.Policitacion
c.Pactum reservati dominii
d.Counter-offer

92.Strictly speaking, the following are all essential elements of a partnership, except:
a.contract or voluntary agreement
b.contribution to a common fund
c.intention to divide profits
d.mutual agency

93.A partnership contract to be valid

a.It must be in writing, either private or public instruments
b.It may be oral or in writing, unless the law requires a pubic instrument.
c.It must be in a public instrument.
d.It is always oral

94.A and B agreed to contribute their respective farms to form a partnership. A immediately
delivered his land. B waited until after 2 months so he could harvest some rice in his farm. What
may the parties do?
a.B should deliver the land and the rice he harvested.
b.B is allowed to keep his land until a formal demand is made.
c.A should also be allowed to harvest any fruits in his land.
d.A should ask for a rescission of the contract of partnership.

95.Which of the following contract of partnership is valid?

a.A universal partnership of all present property between husband and wife.
b.A universal partnership of profits between a common law husband and wife.
c.A universal partnership of all present property between a private individual and a
public officer.
d.A particular partnership between husband and wife.
96.A, B, C and D are partners where A, B and C contributed P1,000,000 each and D his services.
The partnership is engaged in the manufacture and export of garments. Due to a very strong
typhoon, the entire roofing of the factory was blown by the strong winds and if not repaired
immediately would aggravate the damage. A, B, C and D agreed on an additional contribution of
P200,000 each in order to save the business from imminent loss. Which of these is the correct
statement?
a. D is duty bound to contribute 20% more of his time to the business of the partnership.
b. If A no longer has money, he can be compelled to sell his interest in the partnership to the
other partners.
c. B can question the decision because he did not vote for the additional contribution.
d. If C still has money, but refuses to make the contribution, he can be compelled to sells his
interest in the partnership to the other partners.

97.Which of the following is not an obligation of a partner?

a. To give his capital contribution
b. Not to engage in unfair competition with the partnership
c. To pay partnership for damages suffered by it through his fault
d. To inspect and copy partnership books

98.A contributed P10,000; B contributed P15,000; and C contributed P5,000 to their partnership.
D was an industrial partner. There has been no stipulation regarding profits and losses. The
partnership suffered a P60,000 loss. How should the partners share in this loss?
a.A should share P20,000; B – P20,000; C – P20,000 and D – nothing.
b.A should share P15,000; B – P15,000; C – P15,000 and D – P15,000.
c.A should share P20,000; B – P30,000; C – P10,000 and D – nothing.
d.Answer not given.

99.A, B and C all are capitalist partners form a partnership and agree to have a total contributed
capital of P30,000. However, the partners failed to agree as to the extent of their respective share
in the capital contribution. In this case, which of the following statement is not correct:
a.A, B and C must contribute P10,000 each to the partnership.
b.If A, B and C failed to stipulate on how to distribute profit and loss, the profit and loss
will be distributed equally between them.
c.The partnership contract is void because there is no agreement as to the capital
contribution of each partner.
d.If A, B and C mutually agreed that partner A will be excluded from the share in the
losses, such agreement is void.

100.X, Y & Z are partners in XYZ & Co. to which W is indebted in the amount of P600,000. X, Y
& Z agreed that they will just divide equally the partnership credit of P600,000. X and Y were able
to collect P200,000 each from W, but when Z was collecting W had already become insolvent.
a. X and Y will just be allowed to retain what they had collected.
b. To equalize the situation Z will be allowed to withdraw P100,000 from the partnership
funds.
c. X and Y will share with Z the P400,000 already collected.
d. X and Y will return to the partnership capital the P400,000.