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3.  BL-BAMM-6201-LEC-1922S
4.  Week 18: Final Exam
5.  Finals

Started on Friday, 13 March 2020, 11:14 PM

State Finished
Completed on Friday, 13 March 2020, 11:43 PM
Time taken 28 mins 33 secs
Marks 41.00/50.00
Grade 82.00 out of 100.00
Question 1
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Tony enters into a contract of sale with Sharon who paid the purchase of a motorcycle unit.
Tony did not deliver the motorcycle unit. Identify the object/prestation in the statement as
an essential requisite of an obligation.

Select one:
a. Tony
b. Sharon
c. Motorcycle unit 
d. Obligation to deliver

Question 2
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That is, the happening of the event which constitutes the condition. In other words, the
fulfillment of which will extinguish an obligation (or right) already existing.

Select one:
a. positive condition
b. Condition subsequen or Resolutory 
c. Suspensive
d. facultative condition

Question 3
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What is the object in a contract of sale?

Select one:
a. contrary to customs
b. Indeterminate object 
c. within the commerce of man
d. Impossible

Question 4
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The duty to return a stolen carabao is an example of obligations arising from

____________________.

Select one:
a. Law
b. Quasi delicts
c. Quasi contracts 
d. Acts or omissions punished by law

Question 5
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Baldo, a rejected suitor, intimidated Judy into marrying him. While she wanted to question
the validity of their marriage two years after the intimidation ceased, Judy decided in the
meantime to freely cohabit with Baldo. After more than 5 years following their wedding,
Judy wants to file a case for annulment of marriage against Baldo on ground of lack of
consent. Will her action prosper?

Select one:
a. No, since the marriage was merely voidable and Judy ratified it by freely cohabiting with
Baldo after the force and intimidation had ceased 
b. No, since the action prescribed 5 years from the date of the celebration of the marriage.
c. Yes, because the marriage was celebrated without Judy's consent freely given.
d. Yes, the action for annulment is imprescriptible.

Question 6
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In interpretation of contracts, what should be followed? Its terms or the intention of the
parties? Why?
Select one:
a. The terms of the contract because the terms are created after identifying their intention.
b. The intention of the parties because their will has the force of law between them.
c. All of the choices. 
d. Neither terms or intention because it is the meaning of the words in the contract.

Question 7
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Clint, a wealthy landowner suddenly left for abroad leaving his livestock farm unattended.
John, a neighbor of Clint managed the farm thereby incurring expenses. When Clint returns,
he has the obligation to reimburse John for the expenses incurred by him and to pay him
for his services. It is based on the principle _______________________________________.

Select one:
a. That no one shall enrich himself at the expense of another 
b. dura lex sed lex
c. that no man is an island
d. that nobody is above the law.

Question 8
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The following are essential elements of a contract, except:

Select one:
a. Object
b. Cause
c. Consent
d. Motive 

Question 9
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Ervin sold his Toyota Car to Janice under a written contract of sale. What Janice thought
Ervin was selling was his Hyundai Car. Can Ervin ask for the reformation of the contract
against the objection of Janice who is agreeable for the sale of the Toyota Car?

Select one:
a. None of the choices.
b. No reformation because the contract is not valid for the object to deliver must be
determinate as to its kind.
c. Ervin can ask for the reformation of the contract due to the mutual mistake even though
Janice agreed to receive the Toyota Car. 
d. No reformation because no meeting of minds as consent was vitiated by mistake.

Question 10
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Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the
latter about it. In any event, the deed of sale expressly stipulated that X was not liable for
hidden defects. Does Y have the right to demand from X a reimbursement of what he spent
to repair the engine plus damages?

Select one:
a. No, because Y waived the warranty against hidden defects.
b. No, because Y is in estoppel, having changed engine without prior demand.
c. Yes. X is liable whether or not he was aware of the hidden defect.
d. Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not
disclosing the fact to Y. 

Question 11
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Upon the proposal of a third person, a new debtor substituted the original debtor without
the latter's consent. The creditor accepted the substitution. Later, however, the new debtor
became insolvent and defaulted in his obligation. What is the effect of the new debtor's
default upon the original debtor?

Select one:
a. The original debtor remains liable since he gave no consent to the substitution.
b. The original debtor shall pay or perform the obligation with recourse to the new debtor.
c. The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment
on his part.
d. The original debtor is freed of liability since novation took place and this relieved himof
his obligation. 

Question 12
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Question text

X sold his fishing boat to Y who intends to use the boat for smuggling. Is the contract of
sale illegal?

Select one:
a. If X has the knowledge that the boat will be used will make the sale illegal. 
b. With the knowledge of both parties on the what will be the use of the boat , will make
the sale legal.
c. All of the choices
d. By the motive of Y, the contract of sale is void.

Question 13
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Tony enters into a contract of sale with Sharon who paid the purchase of a motorcycle unit.
Tony did not deliver the motorcycle unit. Identify the juridical tie in the statement as an
essential requisite of an obligation.

Select one:
a. Sharon
b. Obligation to deliver 
c. Tony
d. Motorcycle unit

Question 14
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Joe and Jane were to marry in 3 months. Meantime, to express his affection, Joe donated a
house and lot to Jane, which Joe wrote in a letter to Jane. Jane wrote back, accepting the
donation and took possession of the property. Before the wedding, however, Jane suddenly
died of heart attack. Can Jane's heirs get the property?

Select one:
a. No, since the marriage did not take place.
b. Yes, since all the requisites of a donation of an immovable are present. 
c. Yes, since Joe freely donated the property to Jane who became its owner.
d. No, since the donation and its acceptance are not in a public instrument.

Question 15
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G gave Php 100,000 to H who signed a receipt stating: "This is to acknowledge payment of
G in the amount of Php100,000". G later complains the he receives nothing from H for the
Php 100,000. Is H bound to return the Php 100,000?

Select one:
a. The law presumes that G must have received a service from H and that the same is lawful.
If G claims otherwise, he must prove his allegation that H is bound to return the 100,000 to
G. 
b. The law presumes that G has made a legal payment and that acknowledgement receipt is
illegal.
c. None of the choices
d. The law presumes that G has made an illegal payment and that the acknowledgement
receipt is not acceptable by G.

Question 16
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Fernando executed a will, prohibiting his wife Marina from remarrying after his death, at the
pain of the legacy of P100 million in her favor becoming a nullity. But a year after
Fernando's death, Marina was so overwhelmed with love that she married another man. Is
she entitled to the legacy, the amount of which is well within the capacity of the disposable
free portion of Fernando's estate?

Select one:
a. Yes, because the prohibition is inhuman and oppressive and violates Marina's rights as a
free woman.
b. Yes, since the prohibition against remarrying is absolute, it is deemed not written.
c. No, since such prohibition is authorized by law and is not repressive; she could remarry
but must give up the money. 
d. No, because the nullity of the prohibition also nullifies the legacy.

Question 17
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Architect Velasco designed and supervised the house construction of Mrs Reyes. The parties
failed to agree beforehand the professional the professional fee of Architect Velasco. How
much is Mrs Reyes bound to pay Architect Velasco?

Select one:
a. Aside from the Professional fee of Architect it must include also the quality of work .
b. All of the choices 
c. Aside from the Professional fee of Architect it must include also the factors that may
affect the price.
d. Rate customarily paid in the place where the services were rendered.

Question 18
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The duty to pay a loan by virtue based on an agreement is an example of obligations arising
from ____________________.

Select one:
a. Quasi contracts
b. Quasi delicts
c. Law
d. Contracts 

Question 19
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Russel owed Mary the sum of P1, 000.00. By mistake, Russel paid P2, 000.00. Mary has the
obligation to return the P1,000.00 excess because there was payment by mistake.

Select one:
a. True 
b. False

Question 20
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 Flag question

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Can future inheritance be the subject of a contract of sale?

Select one:
a. No, since the seller owns no inheritance while his predecessor lives. 
b. Yes, but on the conditionthat the amount of the inheritance can only be ascertained after
the obligations of the estate have been paid.
c. No, since it will put the predecessor at the risk of harm from a tempted buyer, contrary to
public policy.
d. Yes, since the death of the decedent is certain to occur.

Question 21
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Various stipulations of a contract shall be interpreted together.

Select one:
a. True 
b. False

Question 22
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Question text

Roy and Carlos both undertook a contract to deliver a boat docked in Subic to Sam in
Manila. Before they could deliver it, however, the boat sank in a storm. The contract
provides that fortuitous event shall not exempt Roy and Carlos 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 Roy and Carlos joint or solidary?

Select one:
a. Joint since the conversion of their liability to one of indemnity for damages made it joint. 
b. Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat.
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 discretionof Sam.

Question 23
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Sonny borrowed P1,000,000 from Joy and agreed that in case of non-payment on the date
stipulated, Sonny's house and lot would be sold to Joy for the amount of P1,000,000. Is the
stipulation valid?

Select one:
a. Yes, if Sonny does not pay , he should sell the house and lot for P1,000,000 to Joy. The
agreement is not contrary to law. 
b. No, the motive of Joy is to defraud Sonny on the value of the house.
c. Yes, there is a consent but the terms is not valid may resort to reformation.
d. No, the stipulation does not have consent from one of the parties.

Question 24
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__________________ is an essential element of a contract which is more on the proximate

purpose that the contracting parties have in view at the time of entering into a contract.

Select one:
a. cause 
b. object or prestation
c. motive
d. consent

Question 25
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If Eden sold to Yvonne a parcel of land but the land already has a residential building which
is not mentioned in the agreement, will annulment be the remedy for this?

Select one:
a. No, Reformation will be the remedy because there is meeting of minds by both parties
however by mistake the parties true intention was not reflected in the agreement. 
b. No, the agreement is void for the parties, because it creates fraud not correctly
expressing the terms of the agreement.
c. Yes, Annulment is recommended because there is no meeting of minds for both parties.
d. None of the choices.

Question 26
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When the thing deteriorates with the debtor's fault, the creditor may choose one of the
following:

Select one:
a. Rescission (cancellation) of the obligation with indemnity for damages 
b. Mutual restitution
c. Suffer the deterioration of the thin.
d. None of the choices

Question 27
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A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000
apples. What are the rights and obligations of the buyer?

Select one:
a. He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples.
b. He can keep the 6,000 apples without paying for the 1,000 excess since the seller
delivered them anyway.
c. He can accept all 6,000 apples and pay the seller at P20 per apple. 
d. He can cancel the whole transaction since the seller violated the terms of their
agreement.

Question 28
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 Flag question

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X bought a land from Y, paying him cash. Since they were friends, they did not execute any
document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to
formalize the verbal sale to their father. Unwilling to do so, X's heirs filed an action for
specific performance against Y. Will their action prosper?

Select one:
a. Yes, after full payment, the action became imprescriptible.
b. No, after more than 6 years, the action to enforce the verbal agreement has already
elapsed. 
c. Yes, since X bought the land and paid Y for it.
d. No, since the sale cannot under the Statute of Frauds be enforced.

Question 29
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Demand is not necessary to incur delay when:

Select one:
a. Creditor refuses the performance without just cause.
b. The debtor is guilty of non-performance.
c. Time is the controlling motive 
d. If the obligation bears interest.

Question 30
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Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of
the five lots he owned, without specifying which lot it was, for the price of P1 million. Later,
the parties could not agree which of five lots Lino owned to sell to Ramon. What is the
standing of the contract?

Select one:
a. Unenforceable.
b. Rescissible. 
c. Voidable.
d. Void.

Question 31
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Tony enters into a contract of sale with Sharon who paid the purchase of a motorcycle unit.
Tony did not deliver the motorcycle unit. Identify the passive subject in the statement as an
essential requisite of an obligation.

Select one:
a. motorcycle unit
b. obligation to deliver
c. Tony
d. Sharon 

Question 32
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 Flag question

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D sold E a parcel of land worth 1M. E failed to pay D. Has F has the right to have the sale
declared void by court on the ground of absence of cause for non payment of price?

Select one:
a. F has the right even if he is not a contracting party
b. F has no right being a third person who does not concern any fulfillment of the
obligation. 
c. F has the right as third person who does not exist in the time of the transaction
d. None of the choices.

Question 33
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Facts: The Dela Cruz sisters were the aunts of Dolores Rongavilla. They borrowed P2,000
from the Rongavillas to have their rooftop repaired. Later, petitioners went back to their
aunts to have them sign a contract. Taking advantage of their lack of education, the sisters
were made to believe that such document, typewritten in English, was just for the
acknowledgment of their debt. After four years, petitioners asked their aunts to vacate the
land subject to litigation claiming that she and her husband were the new owners. After
verifying with the Registry of Deeds, the aunts were surprised that what they have signed
was actually a deed of sale. Their land title was cancelled and the ownership was transferred
to their nephews. The land was mortgaged with the Cavite Development Bank.
Issue: Was the deed of sale void?

Select one:
a. No, it is a valid transaction in payment of debt.
b. Yes, because there is fraud and absence of consent 

Question 34
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This happens when the creditor makes a demand and the obligor fails to deliver the thing.

Select one:
a. mora accipiendi
b. culpa aquilana
c. dolo
d. mora solvendi 

Question 35
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The duty to repair damages due to negligence is an example of obligations arising from
____________________.

Select one:
a. Law
b. Acts or omissions punished by law 
c. Quasi contracts
d. Quasi delicts

Question 36
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The following are elements of an obligation, except:

Select one:
a. juridical or legal tie
b. object
c. consent 
d. passive subject

Question 37
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X sold Y 100 sacks of rice that Y was to pick up from X's rice mill on a particular date. Y did
not, however, appear on the agreed date to take delivery of the rice. After one week, X
automatically rescinded the sale without notarial notice to Y. Is the rescission valid?

Select one:
a. Yes, automatic rescission is allowed since, having the character of movables and
consumables, rice can easily deteriorate.
b. No,the seller should first determine that Y was not justified in failing to appear. 
c. No, the buyer is entitled to a customary 30-day extension of his obligation to take
delivery of the goods.
d. No, since there was no express agreement regarding automatic rescission.

Question 38
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 Flag question

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Below are examples of obligations arising from the law except:

Select one:
a. To pay bail bond
b. To support one's family
c. Taxes
d. To return money paid by mistake 

Question 39
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Jean sold her condominium unit to Jane 'including all its contents'. In the unit there is an
antique chair belonging to Susan which Susan agreed to sell to Jean. Will the chair be sold
along with the unit?

Select one:
a. If Jean is not yet paid, the antique chair cannot be considered part of the agreement with
Jane.
b. If Jean already paid the antique chair to Susan, the chair can be considered a part of the
agreement.
c. If Jane is not yet fully paid to Jean, the antique chair cannot be considered part of the
agreement with Jane.
d. All of the choices 

Question 40
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____________________________ is the remedy allowed by law by means of which a written

instrument is amended or rectified so as to express or confirm the real agreement or
intention when by reason of mistake, fraud, inequitable conduct or accident, the intention
fails to express such in agreement or intention.

Select one:
a. To declare void
b. None of the choices
c. Annulment
d. Reformation 

Question 41
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Ratification does not require the conformity of the contracting party who has no right to
bring the action for annulment of contracts

Select one:
a. FALSE
b. TRUE 

Question 42
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___________________________is an injury suffered by one of the parties by virtue of contract that

is disadvantageous to him.

Select one:
a. Loss
b. Lesion 
c. None of the choices
d. Alienation

Question 43
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When the law sets, or authorizes the setting of a minimum wage for laborers, and a contract
is agreed upon by which a laborer accepts a lower wage, he shall be entitled to recover the
deficiency.

Select one:
a. TRUE 
b. FALSE

Question 44
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 Flag question

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____________________ are descriptive of statutes which requires certain classes of contracts to

be in writing. Merely regulates the formalities of the contract necessary to render it
enforceable.

Select one:
a. Statute of Frauds 
b. Purpose of Statutes
c. Written memorandum/note
d. Governing rules in unauthorized contracts

Question 45
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Under voidable contracts, When the defect of the contract consists in the incapacity of one
of the parties, the incapacitated person is not obliged to make any ___________________except
insofar as he has been benefited by the thing or price received by him.

Select one:
a. None of the choices
b. non payment
c. penalty
d. restitution 

Question 46
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___________________________means both are at fault.

Select one:
a. Illegal per se
b. fraud
c. pari delicto 
d. None of the choices

Question 47
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Payments made in a state of insolvency for obligations to whose fulfillment the debtor
could not be compelled at the time they were effected, are also __________________________.

Select one:
a. Voidable
b. Ratification
c. Rescissible 
d. Reformation

Question 48
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 Flag question

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The action for rescission is ______________________; it cannot be instituted except when the
party suffering damage has no other legal means to obtain reparation for the same.

Select one:
a. main
b. principal
c. primary
d. subsidiary 

Question 49
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The action to claim rescission must be commenced within five years.

Select one:
a. FALSE 
b. TRUE

Question 50
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When the agreement is not illegal per se but is merely prohibited, and the prohibition by
the law is designated for the protection of the plaintiff, he may, if public policy is thereby
enhanced, recover what he has paid or delivered.

Select one:
a. FALSE
b. TRUE