b. Both statements are false.

c. Only statement 1 is true.

d. Only statement 2 is true.

20 Statement 1: Tender of payment alone produces the effect of payment when the
creditor is incapacitated to receive payment at the time it is due.
Statement 2: Legal compensation is not proper when one of the debts arises from a
bank deposit.
a. Both statements are false.
b. Both statements are true.
c. Only statement 1 is true.
d. Only statement 2 is true.

21 "Prius tempore, patior jure" is the governing principle in case of

a. Breach of warranty
b. Acceptance of thing delivered
c. Double sale
d. Loss of the thing sold

22 Leon orally sold to Chris his only residential lot for P5 million on October 25. On
October 30, a deed of absolute sale was executed and notarized. On November 10, the
sale was registered with the Registry of Deeds. On December 23, Chris took actual
possession of the lot by building a fence thereon. When did Chris acquire ownership of
the lot?
a. October 25
b. December 23
c. November 10
d. October 30

23 Debbie promises to give Carl P 100,000 if she donates her only BMW car to
Hospicio de San Juan. Which of the following statements is true?
a. The conditional obligation is valid because the condition is casual.
b. The conditional obligation is void because the condition is mixed.
c. The conditional obligation is void because the condition is potestative.
d. The conditional obligation is valid because the condition is not contrary to law,
morals, good customs, public order and public policy.

24 Dindo borrowed a specific car of Cardo worth P500,000, which he failed to return to
the latter despite demand after one week of use. Dindo also borrowed from Cardo P1
million to be paid on February 15. On the other hand, Cardo obtained a loan of P1.5
million from Dindo due also on February 15. Assuming all obligations are due and
demandable, which of the following is correct?
a. Cardo and Dindo are not allowed to set up compensation at all.
b. Cardo can set up compensation as to P1 million credit only.
c. Cardo can set up compensation to extinguish his P1.5 million debt to Dindo.
d. Dindo can set up compensation to extinguish his P1 million debt and his obligation to
return car to Cardo.

25 Dexter, Dan and Dante jointly and severally bound themselves to pay Cardo
P450,000 subject to the following stipulations: Dexter's share due in 2020, Dan's share
in 2021, and Dante's share in 2022. In 2020, can Cardo collect from Dante?
a. Yes, the solidary nature of the obligation means that Cardo can collect P450,000
from Dante in 2020.
b. No, because the contract is clear that Dante is only liable in 2022.
c. Yes, but up to P150,000 only.
d. Yes, but up to P50,000 only.

26 The following are instances where courts may reduce the penalty attached to an
obligation, except