PART I.

OBLIGATIONS
1. Sam is obliged to give Ben on March 1, 2011 a particular parcel of land. Which of the following statements below is correct?
a. he obligation to deliver arises upon the fulfilment of the condition.
b. he obligation to deliver arises upon the arrival of the term.
c. The obligation to deliver arises upon the perfection of the contract.
d. he obligation to deliver arises upon full pa!ment of the parcel of land.
2. "efer to the previous #uestion, supposing deliver! is made on March 1$, 2011, which of the following statements below is the best choice?
a. Sam has a real right over the land after March 1$, 2011.
b. Sa has a personal right over the land and fruits before !arch "#$ %&"".
c. Sam has a real right over the land and fruits from March 1, 2011 to March 1$, 2011, which is a right that is enforceable against the whole world.
d. Sam has a real right over the land and fruits after March 1$, 2011, which is enforceable against the whole world.
%. &, a debtor did not deliver his car on 'ebruar! 1, 2011. ( !phoon happened and the car to be delivered was destro!ed on 'ebruar! 0%, 2011. Will & be liable for the damage? )hoose the best
answer*
a. No$ ' obligation is e(tinguished. A specific obligation as a rule is e(tinguished b) a fortuitous event or act of God.
b. +o, because & was not guilt! of bad faith, a recogni,ed e-ception where a fortuitous event does not e-empt.
c. +o, because & is not !et in legal dela!.
d. .es, & will be liable. he obligation is not e-tinguished based on the principle of genus nunquam perit.
/. Which of the following is with a term or period?
a. 0 will give !ou 110, 000.00 if !our mother dies of cancer.
b. 0 will give !ou 110, 000.00 when 0 have mone!.
c. I *ill give )ou P"&$ &&&.&& after )ou graduate this !arch.
d. 0 promise to pa! !ou 110, 000.00
$. &, . and 2 are obligated to ( in the amount of 1%0, 000.00. & shall onl! pa! if ( graduates on 2011 and . shall pa! on 3anuar! 1, 2012, and 2 shall pa! when ( reaches 2$. 0f ( sues &, after he
graduated, how much can & be held liable to pa! (?
a. '$ + and , are -oint debtors of A. .pon fulfillent of the condition$ A can onl) deand P"&$ &&&.&& fro '.
b. &, . and 2 are solidar! debtors of (. 4pon fulfillment of the condition, ( can demand the whole 1%0, 000.00 from & sub5ect to reimbursement b! the other parties.
c. &, . and 2 are solidar! debtors of (. 4pon fulfillment of the condition, ( can demand 110, 000.00 from & and not the 1%0, 000.00 as this was the onl! amount due upon the fulfillment of the
condition.
d. &, . and 2 are 5oint debtors of (. 4pon fulfillment of the condition, ( can demand from an! debtor the whole amount of 1%0, 000.00 sub5ect to reimbursement b! the other parties which is
reall! their share of the obligation.
PART II. /ONTRA/TS
1. ( wants to borrow from B 1100, 000.00 so he offered b! wa! of mortgage his land as securit!. Both parties agreed on this point but the contract as drafted contained an absolute sale. Supposing (
comes to !ou, what would be !our advice?
a. he contract must be rescinded because of its defect.
b. he contract must be annulled.
c. he contract must be reformed.
d. he contract is unenforceable unless it is ratified.
2. & sent a letter on 'ebruar! 1, 2011 offering a sale to .. ( letter of acceptance was sent b! . on 'ebruar! 1$, 2011. 6owever, ( changed his mind and sent a telegram cancelling the acceptance on
'ebruar! 17, 2011. Which of the statements below is true? )hoose the best answer.
a. he contract of sale is binding since the letter of (cceptance was sent earlier than the telegram cancelling the acceptance.
b. . can still cancel the contract because the letter of acceptance did not !et come to the 8nowledge of &.
c. he contract of sale is binding onl! at the time the offeror has 8nowledge of the acceptance.
d. . can still withdraw because he immediatel! sent a telegram the ne-t da! cancelling the contract.
3. rillanes offered 9arcia a car worth 11M. rillanes gave 9arcia a %0:da! period to decide. 9iven the %0:da! period for the prospective bu!er to decide, could rillanes withdraw the offer before the
lapse of the %0 da! period?
a. .es, because rillanes as the seller has the right to withdraw his offer at an! time before acceptance.
b. .es, 5ust b! communicating to the offeree that !ou are withdrawing the offer at an! time before acceptance with no consideration involved.
c. +o, because the contract has alread! been perfected and such withdrawal is tantamount to a breach in the contract.
d. +o, since the %0:da! period given b! rillanes is alread! binding between them.
4. (, in a written instrument, donated a real propert! to B worth 11M. B accepted the donation. Both agreed to affi- their signature in the said instrument. B wanted to have the donation registered but
the registration re#uires it to be in a public instrument. )an B then sue to compel ( to observe the necessar! form? ;ecide.
a. +o, because donations are gratuitous in nature, thus the donor acted in pure liberalit!.
b. .es, because the donation of a real propert! at a value that e-ceeds 1$, 000.00 is in writing.
c. +o, because the donation of real propert! in the first place is not valid absence the re#uirement of deliver! for real contracts.
d. +o, because the donation of real propert! in the first place is not valid absence the formal re#uirement that it be in a public instrument.

5. 1edro who resides in )ebu wrote to Maria who resides in Manila that he is donating to her a car worth 11M. 4pon the receipt of the letter, Maria called 1edro and informed him that she is accepting
the donation. <n the same da! Maria wrote and mailed a letter to 1edro accepting the donation. 0mmediatel! after mailing the letter, Maria died. Who is entitled to the car, the heirs of 1edro or Maria?
;ecide.
a. he heirs of 1edro. here was no valid donation. here is acceptance but the donation of a personal propert! at a value that e-ceeds 1$, 000. 00 must be in writing to have validit!.
b. he heirs of 1edro. here was no valid donation. he donation in the instant case cannot produce an effect whatsoever.
c. he heirs of Maria. here was a valid donation. here was a meeting of the minds when Maria called 1edro and informed him that she is accepting the donation.
d. he heirs of Maria. here was a valid donation. he offer became effective upon death, civil interdiction, insanit!, or insolvenc! of either part! before acceptance is conve!ed.
1. When the debtor binds himself to pay when his means permit him to do so, the obligation is:
a. )onditional
b. 1ure
c. Simple
d. With a 1eriod
ANS01R2 3
2. Contracts which cannot be sued upon unless ratified, thus it is as if they have no effect yet are:
a. =oidable
b. "escissible
c. =oid
d. 4nenforceable
ANS01R2 3
3. If the obligation of the debtor is I will pay you my debt after I have arrived from abroad, this is
a. 4nenforceable
b. With a 1eriod
c. =oid
d. )onditional
ANS01R2 3
!. When the characters of the creditor and the debtor are merged in one and the same person, there is e"tinguishment of the obligation by:
a. )ompensation
b. Merger of "ights
c. +ovation
d. "emission
ANS01R2 B
#. $hrough insidious words or machinations, % was able to induce & to enter into a contract which without them & would not have agreed to it. $here is:
a. 4ndue 0nfluence
b. 'raud
c. Mista8e
d. Misrepresentation
ANS01R2 B
'. % sells to & his lot and house in the city if % decides to transfer and live in the countryside is an e"ample of:
a. Mi-ed )ondition
b. 1otestative )ondition
c. )asual )ondition
d. "esolutor! )ondition
ANS01R2 B
(. It is a mode of e"tinguishing an obligation when two persons in their own right are creditors of each other.
a. )onfusion
b. "eformation
c. )ompensation
d. +ovation
ANS01R2 /
). % contract is in the stage of conception when:
a. here is meeting of the minds.
b. +egotiations are in progress.
c. he parties come to an agreement.
d. he contract is perfected.
ANS01R2 B
*. If the obligor binds himself to perform his obligation as soon as he shall have obtained a loan from a certain ban+, this obligation is:
a. With a erm
b. )onditional
c. Suspensive
d. "esolutor!
ANS01R2 B
1,. Contracts entered into in a state of drun+enness or during a hypnotic spell are:
a. =oid
b. =alid
c. =oidable
d. >egal
ANS01R2 /
11. -elay in the giving or delivering of a thing
a. Mora solvendi e- re
b. Mora solvendi e- persona
c. Mora accipiende e- re
d. Mora accipiende e- persona
ANS01R2 A
12. Which of the following statements is false.
a. <bligations to give definite things and those that are not susceptible of partial performance shall be deemed divisible.
b. ?-ecution of a certain number of da!s of wor8 shall be divisible.
c. (ccomplishment of wor8 b! metrical units are divisible
d. (n obligation to pa! a certain amount in ten annual installments is divisible.
ANS01R2 A
"4. $his contract is without effect unless ratified:
a. Marriage between first degree cousins
b. )ontract of sale between two insane persons
c. )ontract of sale between husband and wife
d. ;onation between husband and wife
ANS01R2 B
1!. Which of the following contracts is not void ab initio.
a. hose whose ob5ect is outside the commerce of men
b. hat whose ob5ect did not e-ist at the time of transaction
c. hat which contemplates an impossible service
d. hat which is underta8en in fraud of creditors
ANS01R2 3
"#. /escission of contract can ta+e place in this case
a. When the thing which is the ob5ect of the contract is legall! in the possession of a third person who acted in bad faith
b. When he who demands rescission can return whatever he ma! be obliged to restore
c. When the part! see8ing resolution can perform onl! as to part and as to remainder
d. When the seller cannot return the installments paid to him b! the bu!er
ANS01R2 B
1'. % defective contract where damage or lesion is essential
a. "escissible
b. =oidable
c. 4nenforceable
d. =oid
ANS01R2 A
"5. %n instrument may be reformed d
a. Simple donations inter vivos wherein no condition is imposed
b. Wills
c. When the instrument does not e-press the true intention of the parties due to mista8e
d. When the real agreement is void
ANS01R2 /
"6. $hree of the following contract are void. Which one is not.
a. <ral contract of partnership of three partners and capital contribution is more than 1%,000 in cash
b. Written contract contemplating impossible services
c. <ral contract of partnership where real estate is contributed as capital
d. (gent@s authorit! to sell land is given orall!.
ANS01R2
"7. When a third person assumes the payment of the obligation even without the +nowledge and consent of the debtor but with the consent of the creditor
a. here is novation
b. here is delegation if debtor is released
c. here is subrogation
d. here is e-promission if debtor is released
ANS01R2 3
%&. Which of the following is not an element of legal compensation.
a. ;ebts to be compensated are due and demandable
b. here is controvers! or adverse claim over an! debts to be compensated
c. here are two or more debts of the same 8ind
d. here are two or more persons who are creditor or debtors of each other.
ANS01R2 B
8uestion2 0h) is it iportant that obligation in contracts be faithfull) fulfiiled99
Ans*er2 >aws are enacted to have order Aor re#uire the performance of a particular action to achieve the sameB Since the terms and conditions of a contract are considered the governing laws between parties, it
is necessar! to faithfull! fulfill one@s obligation, that is, to avoid the occurrence of dispute. 6ence, wh! do we have to fulfill our obligations, that is to achieving order between the parties to the contract.
8uestion2 :o* do )ou appl) the la*s on obligations and contracts to ever)da) activities and business dealings9
Ans*er* We appl! laws on obligations and contracts unconsciousl! to our dail! activities. <ne will not notice that in performing a simple common tas8 !ou have applied several principles on obligations and
contracts. >i8e, for e-ample, bu!ing a piece of pandesal, the bu!er will offer to bu! and the seller will accept. (t this point, once the seller and bu!er agrees to the ob5ect and price, and their minds have metC each
of them will not 5ust rescind or refuse to compl!. ?ven without 8nowledge of law, one will not 5ust bac8 out from the perfected sale.
hen, after the perfection of the contract of sellC un8nowingl!, the! will go on to consummate the same. he bu!er will hand the mone! and the seller, in return, will hand over the pandesal. ( clear e-ample of
reciprocal obligations, isn@t?
0f the mone! given is more than the price of the pandesal, the seller will give the change. hat is because he 8nows no one should be enriched at the e-pense of anotherC hence, he has the obligation to return
what is not due him. >i8ewise, if what was delivered to the bu!er is more than what he paid for, he will return the same under the same principle, creating an implied obligation to return.
0n a simple, but ver! common, transaction, the parties are not aware that the! are appl!ing the basic principles of law on obligations and contracts. he! might not be well versed, or even, have not had an! formal
education, !et the! appl! these simple principles of law unconsciousl!. hus, 0f !ou as8* how we appl! laws on obligations and contracts on our dail! activities, we appl! it un8nowingl!, but instinctivel!, depending
on one@s value.
1. 0t is the 5uridical relation resulting from lawful, voluntar!, and unilateral acts b! virtue of which the parties become bound to each other to the end that no one shall be un5ustl! enriched or benefited at
the e-pense of another.
a. (greement
b. =inculum 5uris
c. )ontracts
d. Duasi:)ontracts
2. his ta8es place when something is received when there is no right to demand it, and it was undul! delivered thru mista8e.
a. Solutio 0ndebiti
b. +egotiorum 9estio
c. =inculum 5uris
d. 1restation
3. his happened when the creditor ma8e a demand and the obligor fails to deliver the thing.
a. +egligence
b. Mora solvendi
c. Mora accipiendi
d. )ompensatio morae
4. ;emand is not necessar! to incur dela! when*
a. )reditor refuses the performance without 5ust cause.
b. he debtor is guilt! of non:performance.
c. ime is the controlling motive
d. 0f the obligation bears interest
5. 0n what nstance ma! we consider that there is no dela!?
a. 0n civil obligations
b. 0n positive obligation
c. 0n obligation arising from crime
d. 0n natural obligation
6. 0n (ccion subrogatoria the creditor ma! e-ercise all of the rights and bring all of the actions which the debtor ma! have against third persons if*
a. 0f the account is personal
b. he debtor@s acts are fraudulent
c. he debtor has performed an act subse#uent to the contract, giving advantage to other persons
d. )reditor must have the right of return against debtor
7. 0n (ccion Pauliana "escission, which involves the right of the creditor to attac8 or impugn b! means of rescissor! action an! act of the debtor which is in fraud and to the pre5udice of his rights as
creditor provided*
a. he debt is due and demandable
b. here is a failure of the debtor to collect his own debt from %rd persons either through malice or negligence
c. he debtor@s assets are insufficient
d. he debtor has performed an act subse#uent to the contract, giving advantage to other persons
8. 0t causes the e-tinguishment or loss of rights alread! ac#uired upon the fulfillment of the condition, that is, the happening of the event which constitutes the condition. 0n other words, the fulfillment of
which will e-tinguish an obligation Aor rightB alread! e-isting.
a. )ondition subse#uent
b. Suspensive
c. facultative condition
d. positive condition
. When the thing deteriorates !ith the debtor"s fault, the creditor ma! choose one of the following*
a. Mutual restitution
b. "escission AcancellationB of the obligation with indemnit! for
damages
c. #uffer the deterioration of the thing
d. $nstitute an action for negligence.
1%. 0t is a future and certain event upon the arrival of which the obligation Aor rightB sub5ect to it either arises or is terminated.
a. 'ortuitous events
b. )ondition
c. 1eriod
d. ;ate and time
(nswers*
1. ;
2. (
%. B
/. )
$. (
7. ;
E. ;
F. (
G. B
10. )
11. 0t is the 5uridical relation resulting from lawful, voluntar!, and unilateral acts b! virtue of which the parties become bound to each other to the end that no one shall be un5ustl! enriched or benefited at
the e-pense of another.
e. (greement
f. =inculum 5uris
g. )ontracts
h. 8uasi;/ontracts
12. his ta8es place when something is received when there is no right to demand it, and it was undul! delivered thru mista8e.
a. Solutio Indebiti
b. +egotiorum 9estio
c. =inculum 5uris
d. 1restation
13. his happene when the creditor ma8e a demand and the obligor fails to deliver the thing.
a. +egligence
b. !ora solvendi
c. Mora accipiendi
d. )ompensatio morae
14. ;emand is not necessar! to incur dela! when*
a. )reditor refuses the performance without 5ust cause.
b. he debtor is guilt! of non:performance.
c. Tie is the controlling otive
d. 0f the obligation bears interest
15. 0n what instance ma! we consider that there is no dela!?
a. In civil obligations
b. 0n positive obligation
c. 0n obligation arising from crime
d. 0n natural obligation
16. 0n (ccion subrogatoria the creditor ma! e-ercise all of the rights and bring all of the actions which the debtor ma! have against third persons if*
a. 0f the account is personal
b. he debtor@s acts are fraudulent
c. he debtor has performed an act subse#uent to the contract, giving advantage to other persons
d. /reditor ust have the right of return against debtor
17. 0n (ccion Pauliana "escission, which involves the right of the creditor to attac8 or impugn b! means of rescissor! action an! act of the debtor which is in fraud and to the pre5udice of his rights as
creditor provided
a. he debt is due and demandable
b. here is a failure of the debtor to collect his own debt from %rd persons either through malice or negligence
c. he debtor@s assets are insufficient
d. The debtor has perfored an act subse<uent to the contract$ giving advantage to other persons
18. 0t causes the e-tinguishment or loss of rights alread! ac#uired upon the fulfillment of the condition, that is, the happening of the event which constitutes the condition. 0n other words, the fulfillment of
which will e-tinguish an obligation Aor rightB alread! e-isting.
a. /ondition subse<uent
b. Suspensive
c. facultative condition
d. positive condition
1. When the thing deteriorates !ith the debtor"s fault, the creditor ma! choose one of the following*
a. Mutual restitution
b. Rescission =cancellation> of the obligation *ith indenit) for
daages
c. #uffer the deterioration of the thing
d. $nstitute an action for negligence.
2%. 0t is a future and certain event upon the arrival of which the obligation Aor rightB sub5ect to it either arises or is terminated.
a. 'ortuitous events
b. )ondition
c. Period
d. ;ate and time
11. (nna Marie owes "eah 1$,000 pa!able in one !ear, at 10H interest per annum. <n maturit!, (nna Marie pa!s "eah 1$,000 which "eah ac8nowledged having received without mentioning the pa!ment of
interest. Which best describes what happened to the interest?
a. here is a rebuttable presumption that 0nterest has been paid.
b. 0nterest has alread! been paid.
c. 0nterest will soon follow after pa!ment of the principal
d. +one of the above.
12. ( period designated in the obligation is presumed established for the benefit of*
a. both the debtor and the creditor
b. benefit of the creditor onl!
c. benefit of the debtor onl!
d. none of the above.
1%. (n obligation the fulfillment of which is not sub5ect to a condition but immediatel! demandable*
a. )onditional obligation
b. obligation with a period
c. 1ure obligation
d. +one of the above
1/. Which ;<?S +< correctl! complete the sentence? (n obligation is a 5uridical necessit!
a. to give
b. to do
c. not to give
d. not to do
1$. he obligation where onl! one part! is bound is called
a. unilateral
b. bilateral
c. real
d. personal
17. ;uring the pendenc! of the suspensive condition in an obligation to give, if the thing deteriorates through the fault of the debtor
a. the obligation shall be e-tinguished
b. the debtor shall be obliged to pa! damages
c. the impairment shall be borne b! the creditor
d. the creditor ma! choose between rescission and fulfillment, with indemnit! in either case
1E. Which of the following is +< a source of obligation?
a. >aw
b. )ontracts
c. Duasi:)ontracts
d. +one of the above
1F. Statement 0 I ( person alternativel! bound b! different prestations shall completel! perform one of them.
Statement 00 I he creditor can be compelled to receive part of one and part of the other underta8ing.
Which of the following is correct?
a. <nl! Statement 0 is correct
b. <nl! Statement 00 is correct.
c. Both statements are correct.
d. +one of the statements is correct.
1G. J( sells to B his lot and house in the cit! if ( decides to transfer and live in the countr!sideJ is an e-ample of*
(. Mi-ed )ondition
B. 1otestative )ondition
). )asual )ondition
;. "esolutor! )ondition
20. When a third person assumes the pa!ment of the obligation even without the 8nowledge and consent of the debtor but with the consent of thecreditor
a. here is delegation if debtor is released
b. here is subrogation
c. here is novation
d. here is e-promission if debtor is released
21. Which of the following statements is false?
a. (n obligation to pa! a certain amount in ten annual installments is divisible.
b. ?-ecution of a certain number of da!s of wor8 shall be divisible.
c. <bligations to give definite things and those that are not susceptible of partial performance shall be deemed divisible.
d. (ccomplishment of wor8 b! metrical units are divisible
22. hree of the following contracts are void. Which one is not?
( <ral contract of partnership where real estate is contributed as capital
B (gent@s authorit! to sell land is given orall!.
) <ral contract of partnership of three partners and capital contribution is more than 1%,000 in cash
; Written contract contemplating impossible services
2%. 0t is a mode of e-tinguishing an obligation when two persons in their own right are creditors of each other.
( )onfusion
B )ompensation
) "eformation
; +ovation
2/. Which of the following is not an element of legal compensation?
( here is controvers! or adverse claim over an! debts to be compensated
B here are two or more debts of the same 8ind
) ;ebts to be compensated are due and demandable
; here are two or more persons who are creditor or debtors of each other.
2$. )ontracts which cannot be sued upon unless ratified, thus it is as if the! have no effect !et are
( =oidable
B 4nenforceable
) "escissible
; =oid
27. When the debtor binds himself to pa! when his means permit him to do so, the obligation is*
( 1ure
B )onditional
) Simple
; With a 1eriod
2E. 0f the obligor binds himself to perform his obligation as soon as Jhe shall have obtained a loanJ from a certain ban8, this obligation is*
( "esolutor!
B )onditional
) With a erm
; Suspensive
2F. ( contract is in the stage of conception when*
( he parties come to an agreement.
B here is meeting of the minds.
) +egotiations are in progress.
; he contract is perfected.
2G. ( defective contract where damage or lesion is essential
( =oid
B "escissible
) 4nenforceable
; =oidable
%0. his contract is without effect unless ratified*
( ;onation between husband and wife
B )ontract of sale between two insane persons
) Marriage between first degree cousins
; )ontract of sale between husband and wife
%1. "escission of contract can ta8e place in this case
( When the seller cannot return the installments paid to him b! the bu!er
B When the part! see8ing resolution can perform onl! as to part and as to remainder
) When the thing which is the ob5ect of the contract is legall! in the possession of a third person who acted in bad faith
; When he who demands rescission can return whatever he ma! be obliged to restore
%2. hrough insidious words or machinations, ( was able to induce B to enter into a contract which without them B would not have agreed to it. here is
( 4ndue 0nfluence
B Mista8e
) 'raud
; Misrepresentation
%%. (n instrument ma! be reformed
( When the real agreement is void
B Simple donations inter vivos wherein no condition is imposed
) Wills
; When the instrument does not e-press the true intention of the parties due to mista8e
%/. 0f the obligation of the debtor is J0 will pa! !ou m! debt after 0 have arrived from abroad,J this is
( )onditional
B =oid
) With a 1eriod
; 4nenforceable
%$. When the characters of the creditor and the debtor are merged in one and the same person, there is e-tinguishment of the obligation b!
( )ompensation
B "emission
) +ovation
; Merger of "ights
%7. Which of the following contracts is not void ab initio?
( hat which contemplates an impossible service
B hat which is underta8en in fraud of creditors
) hose whose ob5ect is outside the commerce of men
; hat whose ob5ect did not e-ist at the time of transaction
%E. )ontracts entered into in a state of drun8enness or during a h!pnotic spell are*
( =alid
B >egal
) =oidable
; =oid
%F. ;ela! in the giving or delivering of a thing
( Mora accipiende e- re
B Mora accipiende e- persona
) Mora solvendi e- persona
; Mora solvendi e- re