Since you are probably finished or almost done with Remedial Law and Commercial Law, spare

some time for Civil Law too.

TRUE OF FALSE UNLESS OTHERWISE REQUIRED. If the answer is False, explain in one
sentence. (Use yellow pad or any paper available)

1. In sales, knowledge of a third party of an unregistered right to repurchase is equivalent to

registration negating good faith on his part.

2. Consumable goods may be the subject matter of a contract of lease.

TRUE

3. It shall be unlawful to employ a 16-year-old man as a domestic worker.

FALSE , below 15

4. It is unlawful for X to wash the clothes of Y for a week in payment of the former’s obligation to
the latter in the amount of P500.

5. A travel agency must observe extraordinary diligence in the performance of its contractual
obligations.
FALSE- In Crisostomo vs. CA, the contract between the parties and a travel agency is an ordinary
one for services, the standard of care thus required is that of a good father of a family under 1173
of the Civil Code and not extraordinary diligence.

6. It may be agreed that goods may be transported at the risk of the owner.
FALSE - Article 1745 (1) provides that a stipulation that the goods are transported at the risk of the
owner or shipper is unreasonbale, unjust and contrary to public policy.

7. Additional limited partners may be admitted without need of amending the certificate of
partnership.
FALSE- Article 1849 states that after the formation of a limited partnership, additional limited
partners may be admitted upon filing an amendment to the original certificate.

8. A contract entered into by an agent exceeding his authority is unenforceable.

TRUE

9. The lack of a license to sell in violation of a mandatory provision of PD 957 results to the
invalidation of the contract to sell entered into by a subdivision developer with a buyer.

10. Article 1544 of the Civil Code on double sale will also apply to sales involving unregistered
land.
FALSE - Under Republic Act No. 3344, registration of documents affecting unregistered land is
without prejudice to third party with a better right.

11. In a contract to sell, the buyer may file an action for specific performance if the seller refuses to
accept the full purchase price tendered by the former.
FALSE - In Olivarez vs. Castillo, the Supreme Court explained, failure to fully pay the purchase
price is not a breach of contract but merely an event which prevents the sellers obligation to
convey title from acquiring binding force.

12. A separate action for reformation of instrument is no longer necessary before foreclosure as a
court declaration that the parties' intention was to execute an equitable mortgage is sufficient
reformation of such instrument.

13. In a potential sale transaction, the prior payment of earnest money even before the property
owner can agree to sell his property can be used to bind the owner to the obligations of a seller
under an otherwise perfected contract of sale.
14. An action for reconveyance based on implied trust prescribes in 10 years to be counted from
the date of issuance of the Torrens title over the property except when the person enforcing the
trust is not in possession of the property.
TRUE

15. In a joint indivisible obligation, the insolvency of a debtor makes the others liable for his share
as an exception to the general rule because the creditor must proceed against all debtors.
FALSE - Pursuant to Article 1224, if anyone of the debtors in a joint indivisible obligation should fail
to comply with his undertaking. the obligation is converted into one of indemnity for damages
hence the debtor cannot be compelled to answer for the debt or liability of the others because of its
joint character.

16. The rule on relativity of contracts applies to a contract entered into by the gestor in negotiorum
gestio.

17. A contract of lease with an option to renew shall be extinguished by the death of either the
lessor or the lessee.

18. A duly registered levy on attachment could not prevail over a prior sale even if unregistered
because of the rule of first in time better in right.

19. Rescission may be availed of by a party in a partnership contract upon the failure of a
contracting party to perform the reciprocal obligation of delivering his promised contribution.
FALSE, Article 1788 provides that a partner who has undertaken to contribute a sum of money and
fails to do so becomes a debtor for the interest and damages from the time he should have
complied with his obligation therefore the proper action is specifice performance and not
rescission.

20. The death of the principal terminates the agency.

TRUE

21. The death of a general partner terminates the partnership.

FALSE, the death of the general partner only results in dissolution not immediate termination of the
partnership

22. The death of a debtor in an obligation to do extinguishes the obligation.

TRUE

23. The loss of the thing used to secure an obligation due to the fault of the creditor terminates the
principal obligation.
FALSE - Loss of an accessory does not result in the termination of the principal unless there is a
stipulation to the contrary

24. There will be delay if the debtor refuses to choose an alternative prestation within the period
agreed upon for the choice to be done.

25. A debtor may compel his creditor to accept as legal tender the commemorative Php50,000 bill
in payment of an obligation incurred during the expanded community quarantine.
TRUE

26. A common debtor may opt to apply payment to his personal debt owing to the managing
partner over his obligation to the partnership even if the latter obligation bears a higher rate of
interest.
FALSE. Under Article 1792, the debt collected shall be applied to two credits in proportion to their
amounts and the debtor’s right to make an application of payment is available to him only if the
managing partner’s credit is more onerous to him than the partnership credit.

27. In all instances, a limited partner shall be liable as a general partner if he participates in the
management of the partnership.
TRUE

28. There can be delay on the part of the creditor in an obligation not to do if he fails to stop the
prohibited act within a reasonable period of time.
FALSE - There is no delay in an obligation not to do (1169)

29. The Recto Law applies to assignment of leasehold rights.

TRUE

30. The principal has a subrogatory right against a sub-agent for damages incurred through the
latter’s fault.
TRUE

31. Warranty in sales is a natural element of the contract.

TRUE

32. Formality of the sale is an essential element of a sale of land through an agent.
FALSE, it is the authority of the agent and not the sale that requires formality for Section 1874
provides that when a sale of a piece of land or any interest therein is through an agent, the
authority of the agent shall be in writing otherwise the sale shall be void.

33. Vices of consent that affects cognition includes incapacity, error and fraud.
FALSE, error is not a vice of consent

34. The intention prevails as against third parties in case conflict exists between the words and the
intention of the parties.
TRUE

35. Relative nullity and rescissibility may be cured by confirmation or prescription.

36. Inadequacy of cause upon the contract invalidates the same.

37. A relative simulation makes the apparent contract void as between parties, but the hidden
contract is valid if it is lawful and has the necessary requisites.

38. Gross negligence in the performance of an obligation will have the same consequences as
fraud.

39. A stipulation for an incentive of plus 1 in the final grade in Civil Law Review 1 for students who
watched the Red Lions win the NCAA championship is valid.
TRUE

40. As a rule, the execution of a notarized deed of sale is equivalent to delivery of the thing sold.

41. A court judgment for the price of goods in an action for collection results to a waiver of the
unpaid seller’s lien on the goods.

42-45. Enumerate the warranties of an assignor of a claim secured by a document of title to goods.

46. The hen sold to Y yesterday laid 2 eggs this morning. At the agreed time of delivery tomorrow,
the seller must deliver the 2 eggs to Y.
47. If the buyer does not appeal the judgment of eviction, the warranty against eviction will not
apply.

48-50.Instances when the sale of a subdivision lot is exempt from the requirement of a license to
sell.

51-56. Grounds for the revocation of a license to sell issued to a subdivision owner.

57-68. Give 12 distinctions between limited partnership and general partnership.

69-74.Give the order of priority in the payment of the liabilities of a limited partnership upon
liquidation.

75-80.Give six characteristics of a contract of agency.

81-95. Enumerate 15 obligations of the agent to his principal.

96-98.Explain the doctrine of marshaling of assets in partnership.

99. A foreign-owned partnership may engage in retail trade in the Philippines.

TRUE

100. Barter in effect is a mutual sale where both are vendors and vendees to each other.
TRUE

101. All the Civil Code provisions on pledge were repealed by the Personal Property Security Act.
FALSE, not all provisions were repealed such as Articles 2124-2126

102. Deposit accounts and intellectual property rights may now be used as loan collateral.
TRUE

103. Under the PPSA, future income cannot be pledged to secure an obligation because of the
uncertainty of income.

FALSE. Section 5 of the PPSA provides that a security agreement may provide for the creation of
a security interest in a future property, but the security interest in that property is created only when
the grantor acquires rights in it or the power to encumber it.

104. An airplane may be pledged or mortgaged.

105. Under the PPSA, delivery of the thing pledged is necessary to perfect the contract.
FALSE - In the PPSA, security interest shall be perfected when it has been created and the
secured creidtor either takes the following action (1) registration of a notice with registry (2)
possession of the collateral by the secured creditor (3) control of the deposit account

106. A security interest by way of pledge must be in a public instrument.

FALSE Security in any tangible asset may be perfected by registration or possession.

107. Under the PPSA, the pledgee shall return to the pledgor the excess of proceeds over the
debt.
TRUE

108. Under the PPSA, the pledgor is liable for any deficiency of the proceeds.
TRUE
109. The bailee in commodatum acquires the use of the thing loaned as well as its fruits for the
duration of the contract.
FALSE - Article 1935 provides that the bailee in a commodatum acquires the use of the thing
loaned but not its fruits unless there is a stipulation that the bailee may make use of the fruits.

110. Consumable goods may be the subject of commodatum.

TRUE

111. A thief, lessee, or usufructuary may be a bailor in commodatum.

TRUE

112. The bailee in commodatum can never lend or lease the object of the contract to a third
person.
FALSE - Members of the bailee’s household may make use of the thing loaned unless there is a
stipulation to the contrary. (1939 2nd paragraph)

113. The bailee is obliged to pay the ordinary expenses for the use and preservation of the thing
loaned.
TRUE

114. The bailee is liable for the loss of the thing if he lends or leases the thing to a third person who
is not a member of his family except when it is lost through a fortuitous event.
FALSE, Pursuant to Article 1941 bailee is liable even if should be through a fortuituous event

115. The bailor may demand the thing at will if neither the duration of the contract nor the use to
which the thing loaned should be devoted has been stipulated.
TRUE

116. The bailor may exempt himself from the payment of expenses or damages by abandoning the
thing to the bailee.
FALSE 1952- The bailor cannot exempt himself from the payment of expenses or damages by
abandoning the thing to the bailee

117. Only in loan contracts, with or without security, may interest be demanded.
FALSE- Other contracts such contract of sale may demand interest

118. A contract of deposit is binding and perfected even before the delivery of the thing.
FALSE - Contract of deposit is a real contract perfected upon delivery of the thing.

119. Exceptionally, the ownership of the thing loaned may be retained by the Creditor.
TRUE

120. A stipulation to pay interest in a contract of loan is unenforceable if not reduced in writing.
FALSE - 1956 No interest shall be due unless it has been expressly stipulated in writing hence void

121. Compounding of interest is allowed only by agreement.

TRUE

122. Payment of interest in the absence of stipulation shall be governed by solutio indebiti.

123. The current legal rate of interest for forbearance of money is 12% per annum.
FALSE, 6% Resolution No. 796 dated May 16, 2013

124. A contract of irregular deposit allows the depositary to use the property of the depositor.

125. A movable or immovable thing may be the object of a voluntary deposit.

FALSE - In extrajudicial deposit such as voluntary
126. A contract of deposit must be in writing in order to be valid.
127. The depositary cannot deposit the thing with a third person.
128. The depositary shall be liable for the loss of the thing deposited if he allows others to use it,
even though he himself may have been authorized to use the same.
129. The depositary can demand that the depositor prove his ownership of the thing deposited.
130. When there are two or more depositors who are not solidary, each one cannot demand more
than his share if the thing can be divided.
131. The depositary may not return the thing deposited upon demand if a specified period or time
for such return has been fixed.
132. A deposit is necessary when it is made in compliance with a legal obligation.
133. A gratuitous deposit is extinguished upon the death of either the depositor or the depositary.
134. The insolvency of the guarantor entitles the creditor to demand another guarantor.
135. Future debts of unknown amount may be guaranteed and the guarantor may be sued even
before the debt is liquidated.
136. Guaranty must be express and is never presumed.
137. The guarantor can bind himself for more or less than what the debtor is liable to pay.
138. The debtor may interpose against the guarantor all defenses available against the creditor.
139. The benefit of exhaustion in favor of the guarantor is not available where the guaranty is in the
form of a mortgage of the guarantor’s property.
140. Execution may be enforced against the guarantor whenever a writ of execution is issued
against the debtor.
141. If the guarantor pays before the due date, he cannot proceed against the debtor until that date
arrives, unless the debtor ratifies the payment.
142. The pledgee cannot deposit the thing pledged with a third person, unless there is a stipulation
authorizing it.
143. The pledgor remains the owner of the thing pledged until its sale.
144. The pledgor has the right to the return of the thing pledged upon extinction of the principal
obligation.
145. The pledgee may use the thing pledged on his own will.
146. In a real estate mortgage, a stipulation forbidding the owner from alienating the immovable is
valid.
147. The mortgage credit may be alienated or assigned to a third person, in whole or in part.
148. In a real estate mortgage, the creditor has the right to appropriate the fruits.
149. Antichresis may be constituted only on immovable property.
150. A pledgor who is not the debtor, has the rights of a guarantor to seek reimbursement,
subrogation, or excussion and is not prejudiced by any waiver of defense by the debtor.
151. The incorporeal right of lease over a condominium unit evidenced by a notarized contract of
lease may be validly pledged.
152. A pledge made by a third party who is not the owner of the thing pledged is void because only
an owner without exception may pledge his property.
153. An agreement to the effect that the thing pledged should be applied in payment of the
obligation by way of dacion en pago is void because this will constitute pactum commissorium.
154. If there are three debtors who are jointly liable, the creditor may enforce the obligation of each
against the whole thing pledged.
155. The pledgee cannot use the thing pledged without the express authority of the pledgor even if
its preservation so requires.
156. All fruits produced by the thing pledged are subject to legal compensation even in the
absence of a stipulation to this effect.
157. The pledgee of a pawn ticket must renew it when necessary.
158. Unless stipulated otherwise, the return of the thing pledged to the owner extinguishes the
pledge.
159. In all instances, the pledge is extinguished when the thing pledged is in the possession of the
pledgor.
160. The pledgor must pay the necessary and useful expenses incurred by the pledgee on the
thing pledged.
161-168.What are the modes of extinguishing guaranty?
169-174.What are the obligations of the pledgee in preservation of the thing?
175-177.What are the obligations of the depositor?
178.In antichresis, the debtor is obliged to account to the creditor for fruits and their application to
the interest and the principal of the credit.
179-181.What are the kinds of necessary deposits?
182-185.How is voluntary deposit extinguished?
186-189.What are the special rules governing judicial deposit?
190-193.What are the characteristic features of guaranty?
194-198.In guaranty, in what cases is the Benefit of Exhaustion not available?
199-202.What are the rights of the guarantor before making payment?
203.The failure on the part of the creditor to demand payment after the debt becomes due will
extinguish the guaranty.
204-208.What is a clawback clause? If it is incorporated in a contract of agency against the paid
commission of the commission agent in the event of annual profit shortfall, how shall it be treated?
209. What is a quasi-contract?
210. An oral real estate mortgage is void against innocent third parties but valid between the
parties themselves.
211. An unregistered real estate mortgage may still be the subject of foreclosure.
212. A contract of antichresis that does not specify the interest in writing although it expressly
mentioned the principal amount is void and of no effect at all.
213. A lessee may mortgage the thing leased but only valid during the effectivity of the lease.
214. A mortgage made by a co-owner of a parcel of land owned in common without the consent of
the other co-owners produces no legal effect.
215. The nullity of a mortgage does not render null and void the principal obligation it guarantees.
216. A municipality may not mortgage a patrimonial property being used as a public market.
217. Growing fruits while they are attached to the land may not be proper objects of a chattel
mortgage.
218. Define an agency coupled with an interest.
219. A mortgage may be gratuitous.
220. A mortgage follows the property whoever the possessor only when there is a formal
assumption of mortgage by the transferee.
221. While the law does not specifically require the delivery of possession of the property to the
antichretic creditor, delivery has been held to be a standard characteristic of a contract of
antichresis.
222. All immovable properties may be the object of a contract of antichresis.
223. The mortgage extends to both natural and artificial accessions.
224. The parties must agree on the valuation of the fruits for application to the interest and
principal of the debt.
225. The parties may stipulate to share the taxes and charges upon the estate during the period of
antichresis.
226. The expenses for preservation of the property in antichresis shall be deducted from the fruits
of the same.
227. The obligation of two debtors in solutio indebiti is solidary.
228. To suppress rampant lawlessness in the community, majority of the residents agreed to hold
a prayer rally. An atheist who objected to the holding of the prayer rally has no liability to pay a
share of the expenses for the event even if there was notable peace in the community after the
prayer rally.
229-231.Give three rights of an antichretic creditor.
232-234.Give three (3) obligations of an antichretic creditor.
235. Stipulations in a contract of antichresis for the extrajudicial foreclosure of the security is void
for lack of legal basis.
236. In a real estate mortgage, foreclosure pursuant to Act No. 3135 does not require a personal
notice to the mortgagor.
237. In real estate mortgage and antichresis, the deficiency or excess is for the account or credit of
the debtor unlike in the case of pledge.
238. Illustrate a “purchase money resulting trust”.
239. A survivorship agreement that upon the death of one of the joint account holders the full
amount of money in their account shall become the property of the survivor, is a valid aleatory
contract.
240. Betting in basketball games is valid because basketball is a game of skill and not of chance.
241. The insolvency of the guarantor entitles the creditor to demand another guarantor even if the
creditor designated the guarantor.
242. Future debts of unknown amount may not be guaranteed because there is yet no principal
obligation.
243. Guaranty must be express but exceptionally it could be implied from the acts of the guarantor
as in a guaranty by estoppel.
244. The guarantor can bind himself for more than what the debtor is liable but not for less.
245. If the parties avail of a contractual provision for an automatic extension, the guarantor will be
released.
246. In case of merger between the debtor and guarantor, the guaranty is extinguished but a sub-
guarantor, if any, is not released.
247. There is no excussion in judicial guaranty.
248. When the principal obligation is modified by agreement, the guarantor is released if he did not
agree to the modification even if the modified obligation will be less onerous.
249. A remission in favor of one of five guarantors extinguishes the principal obligation but only to
the extent of 1/5.
250-255.Give six (6) examples of legal pledge.
256.For all intents and purposes the pledge is extinguished when the thing pledged is in the
possession of the pledgor.
257.The rules governing possession and preservation of a thing pledged by agreement also apply
to legal pledges.
258-262.Characteristics and features of conventional deposit.
263-265.Obligations of the depositary.
266-270.Distinctions between judicial deposit from conventional deposit.
271-274.Distinctions between solidary guarantor and solidary debtor.
275. A quasi-contract may be nominate or innominate.
276. The rights under quasi-contract prescribe in six years.
277. Negotiorum gestio arises when a person takes charge of an abandoned property of another
who does not oppose notwithstanding knowledge.
278. Why cannot an interest of a limited partner subjected to a charging order be redeemed using
partnership property?
279. Solutio indebiti arises when payment is made through mistake, liberality or some other cause.
280-284. Requisites of “negotiorum gestio”.
285-292.When is the gestor in “negostiorum gestio” liable for damages even if due to fortuitous
event.
293-298.Modes of extinguishing “negotiorum gestio”.
299. If the payer was in doubt whether the debt was due, he may recover upon proof that it was not
due.
300. Negotiorum gestio and solutio indebiti may apply in one and the same situation.
301. Negotiorum gestio is the management of affairs or property of another without the latter’s
consent whether express or implied and for his benefit.
302. A person who receives in good faith a payment made erroneously by the payor shall only
answer for the thing and its accessories to the extent of his enrichment.
303-306.Requisites of “solutio indebiti”.
307. If the thing paid to the payee in good faith was thereafter alienated, the payee may restore the
price or assign the action to collect it.
308. What is the doctrine of efficient procuring cause?
309. The payee in bad faith can demand reimbursement for necessary and useful expenses with
right to retention.
310. What is agency by necessity?
311. A stranger who gives support has a right to claim from the one legally bound unless he gave it
out of piety and without intention of being repaid.
312. When through an accident, a person was injured and is treated or helped by another while not
in a condition to give consent, he shall be liable to pay for the services rendered him even when
they were rendered on pure generosity.
313-316.Who are the parties in a contract of life annuity?
317. Motive is material in negligence cases.
318. An insane person is exempt from liability arising from a quasi-delict.
319. A violation of a statutory duty does not constitute negligence.
320. Error of judgment on the part of a surgeon necessarily makes him liable for damages.
321-324. Give 4 instances when the principal is not obliged to reimburse the expenses incurred by
the agent.
325.Unlike in the case of fraud, a person may validly waive his right to recover damages which
may result from negligence, provided it is not gross.
326-328.Explain the “emergency rule” in torts.
329. In an express trust, the action to compel the trustee to convey the property to the beneficiary
prescribes in 10 years.
330. An action based on an implied constructive trust prescribes in ten years from the time of
repudiation.
331. The fact that the price in a pacto de retro sale is not the true value of the property justifies the
conclusion that the contract is one of equitable mortgage.
332. A co-owner has the pre-emptive right to buy the shares of his co-owners.
333. What must the lessee do if the lessor refuses to accept the rentals?
334. A provision in a lease contract that it will subsist for as long as the lessee promptly pays rent
is void for being contrary to public order and public policy.
335. The extraordinary liability of the common carrier does not apply when the goods are already
stored in its warehouse because the rules on deposit would already apply.
336-338.Enumerate the specific obligations of the agent in performing the agency with exactness.
339.The liability of an industrial partner for outstanding partnership obligation is solidary.
340-344.Give five distinctions between rescission of contracts under Article 1380 and rescission
under Article 1191.
345. Extraordinary expenses on the occasion of the actual use by the bailee without fault shall be
borne by the bailor.
346. If in a subsequent agreement a third person assumes payment of an obligation there is
already novation even if the old debtor was not released from responsibility.
347-356.In a criminal case for homicide through reckless imprudence, upon arraignment,
defendant driver, D, pleaded guilty. The trial court rendered judgment convicting him and
sentencing him to pay the heirs of the deceased P12,000. Upon motion of the heirs of the
deceased, a writ of execution was issued against D, but was returned unsatisfied because of the
latter’s insolvency. Whereupon, a motion for the issuance of a subsidiary writ of execution was
filed against E, D’s employer. E now contends that since he is not impleaded in the criminal case,
the proper remedy in order to enforce the subsidiary liability of employers under Art. 103 of the
Revised Penal Code is to bring a separate civil action against him. Is E correct?
357-366.A parcel of land covered by a tax declaration has already been the subject of a series of
transfers until it was mortgaged to a bank by X who did not pay the obligation. The bank foreclosed
the mortgage. The bank’s ownership was later on consolidated; then, A and B acquired it from the
bank with a warranty against eviction but no warranty that its title was perfectly valid. When A and
B asked for a certification from the Bureau of Forest Development, it was found out that the land
was a timberland, hence, they asked for the refund of their money. The bank contended that it was
the absolute owner, having bought it at an auction sale, and that there was no malice or fraud in its
sale to A and B, hence it could not be compelled to return the purchase price. Is the bank correct?
367. Where negligence is punishable under the Penal Code, the responsibility for quasi-delict is
distinct from the civil liability arising from the felony and may therefore be pursued separately.
368. A breach of contract may result from a quasi-delict.
369-370.Define proximate cause.
371-372.What is the doctrine of contributory negligence?
373-374.Explain the doctrine of discovered peril.
375. Under the doctrine of “supervening negligence”, the antecedent negligence of a telephone
company in not providing warning signs on its excavations would not make it liable if the plaintiff
had a clear chance to avoid the accident.
376. The “volonti non fit injuria” rule does not apply if a person, aware of the possible danger,
takes some risks in order to preserve life.
377-378.What is the doctrine of imputed negligence?
379. The burden of proof is the same in actions culpa contractual and culpa aquiliana.
380-381.Explain the res ipsa loquitor rule.
382. Philippine law also recognizes the “strict liability in torts” rule.
383. Liability may be created even if there is no fault or negligence.
384. If the driver and owner of a cargo truck which figured in a road mishap were found liable for
tort, their liability is solidary.
385. A subsidiary writ of execution may be issued against the employer of an accused even if the
former did not participate in the criminal proceedings.
386. Exceptionally, the crime of rape may be considered a quasi-delict.
387-390. Requisites of quasi-delict.
391. Culpa contractual and culpa aquiliana both give rise to an obligation to indemnify.
392. As a general rule, quasi-delict covers all negligent or culpable acts or omissions whether
punished by law or not so long as they do not constitute breach of contract.
393. Factors affecting negligence are circumstances of person, time, place and skills.
394. A person may be held responsible for the acts and negligence of others under his control and
supervision as in injury caused by stray animals.
395-399. Enumerate the persons responsible for the acts and negligence of others.
400. The head of families that live in buildings or parts thereof shall be liable for damages caused
by things thrown or falling from the same and no proof of negligence is required to hold them liable.
401. Damages recoverable for quasi-delicts include damnum emergens and lucrum cessans.
402. Fault must be the proximate and need to be the only cause for the damage in order to recover
indemnification.
403. Actual damages are reparation of pecuniary losses.
404. Moral damages are reparation for non-pecuniary losses.
405. Liquidated damages must be proved by the claimant.
406. Exemplary damages are for deterring future violations.
407. Fixing the amount of indemnity may only be by law or by the courts.
408-409. What is the extent of compensatory damages?
410-412.Give the requisites for the recovery of actual damages.
413. Equitable mitigation of damages may be decreed if loss would have resulted in any event
even if there was no breach by the defendant.
414. No interest may be recovered on unliquidated claims or damages, except when the demand
can be established with reasonable certainty at the Court’s discretion.
415-418.Enumerate the cases where attorney’s fees and costs of litigation may be recovered.
419-423.In what cases may an award for moral damages be made?
424-426.Characteristics of liquidated damages.
427. Liquidated damages are those damages agreed upon by the parties to a contract and may not
be equitably reduced.
428. Exemplary damages cannot be awarded alone.
429. The preference provided in article 2241 of the Civil Code can only be applied if there is an
insolvency proceeding.
430. With reference to specific movable property, the claims of employees of the owner now enjoy
preference over taxes.
431. With respect to specific immovable property, only taxes enjoy absolute preference and the
other preferred credits must be paid pro rata.
432-435.What are the 4 elements involved in medical negligence cases?
436. A partner may be both limited and general in one partnership.
437-439.What are the elements of abuse of right?
440-442.In what instances are the partners solidarily liable with the partnership?
443-447.What are the requisites of agency by necessity?
448. Extraordinary expenses on the occasion of the actual use by the bailee without fault shall be
borne by the bailor.
449-458.X borrowed money from Y. As a surety for the payment of the obligation, Z executed a
real estate mortgage in favor of the creditor, Y. X failed to pay his obligation, hence, Y demanded
the payment of the obligation. As X failed to comply, Y foreclosed the mortgage executed by Z,
who moved for the nullification of the same contending that Y should have resorted first to the
properties of X before the foreclosure. Is Z’s action correct? Why?
459-468.“O”, owner of a copying machine, leased it to “L” at a rental of P4,000.00 a month for a
period of one year with option on the part of “L” to buy the copying machine at the end of one year
for P80,000.00, to be paid by applying the rentals, so that “L” needs only to pay P32,000.00. “L”
failed to pay rentals for the 4th, 5th and 6th months so that “O” terminated the lease and
repossessed the copying machine, then sued “L” for the unpaid rental of three months, or
P12,000.00. Is “O’s” suit legally tenable? Explain.
469.The agent is obliged to deliver to the principal whatever he may have received by virtue of the
agency, even though it may not be owing to the principal. Give one exception.
470.A third person dealing with a partner or an agent must ascertain the limits of authority of the
acting partner or agent.
471.In an express trust, acceptance by the trustee is not necessary for the creation of the trust.
472.Acceptance by the beneficiary is not necessary for the creation of an express trust.
473.The trustor may or may not have the capacity to transfer property.
474.Express trust is created by declaration of the trustee that he holds the property in trust.
475.Trusts over real property are enforceable in any form.
476.The trustee can acquire the trust property by adverse possession even without repudiation of
the trust.
477.In order to bind third persons to a trust, the same must be in a public instrument.
478.Statute of limitations applies to express trusts.
479.There is partnership when two or more persons bind themselves to contribute money,
property, reputation or industry to a common fund, with the intention of dividing the profits among
themselves.
480.A contract of partnership may be constituted in any form except when a parcel of land is
contributed in which case the contract must be in a private or public instrument.
481.Husband and wife may enter into a partnership for the exercise of a profession.
482.The sharing of net returns may indicate the existence of a partnership.
483.A person who, not being a partner in fact, allows his name to be included in the firm name,
may subject himself to the liabilities of a limited partner.
484.Appraisal of goods contributed to the partnership must be based on the value at the time of
perfection of the contract if different from delivery.
485.An industrial partner may engage himself in any other business with the authority of the other
partners.
486.When there is no specification as to the management of the partnership, the partner with the
highest contribution becomes the manager.
487.The capitalist partners may exclude from the partnership an industrial partner who engages
himself in a business without the required authority even if the industrial partner also contributed a
parcel of land to the partnership.
488.A limited partner is a partner in a partnership.
489.A limited partner who is also a general partner is liable to the creditors of the partnership but
only up to his contribution.
490.A limited partnership is dissolved upon retirement, death, insolvency, insanity or civil
interdiction of a general partner.
491.A contract of agency to sell personal property is a real contract that would require the delivery
of the thing to be sold.
492.A partnership is formed even if no inventory and public instrument of real properties
contributed to the partnership was made.
493.Universal partnership of all present property includes title to all present and future property as
well as future properties acquired by gratuitous title.
494.A contract of partnership with a capital of P3,000 must appear in a public instrument and
recorded in the Securities and Exchange Commission to be enforceable.
495.A stipulation excluding an industrial partner, from any share in the profits or losses is valid.
496.An industrial partner is exempt from payment of liabilities to partnership creditors.
497.A transfer of a partner’s entire interest in the partnership to his only partner dissolves the
partnership.
498.In voluntary transfer of a partner’s interest in the partnership, the assignee becomes a partner
if majority of the partners consent thereto.
499.A person admitted as partner in an already existing partnership is also liable with his individual
properties for all obligations of the partnership arising before his admission unless there is a
contrary stipulation.
500.A commission agent cannot sell on credit goods or items without the express or implied
consent of the principal.
501.An agency “coupled with an interest” survives the grantor’s death.
502.In case there are two or more principals, any one of them may revoke the agency provided the
consent of the other is sought.
503.Constructive trusts are imposed by the law to carry out the actual or presumed intent of the
parties if the express trust is prejudicial to the interest of the beneficiary.
504.Resulting Trusts are established by law, regardless of intention, in order to prevent fraud,
oppression or unjust enrichment.
505.No express trust concerning an immovable or any interest therein may be proved by parol
evidence.
506.There is a resulting trust when a donation is made to a person but it appears that although the
legal estate is transmitted to the donee, he nevertheless is either to have no beneficial interest or
only a part thereof.
507.There is a constructive trust when land passes by succession to any person and he causes
the legal title to be put in the name of another.
508.There is constructive trust if the price of a sale of property is loaned or paid by one person for
the benefit of another and the conveyance is made to the borrower but mortgaged to secure the
payment of the debt.
509.Laches is a defense in resulting trusts unless the beneficiary had no knowledge of the facts.
510.In express trusts, the statute of limitations does not apply to subsisting and continuing trusts,
so long as there is no denial or repudiation thereof.
511.The sharing of gross returns is sufficient to establish existence of a partnership.
512.When an unlawful partnership is dissolved by a judicial decree, the profits and unlawful objects
shall be confiscated in favor of the State.
513.The land owned by the partnership where it operates a shabu laboratory may be confiscated
by the State.
514.When a partnership for a fixed term or particular undertaking is continued after the termination
of such term or particular undertaking without any express agreement, the rights and duties of the
partners remain the same as they were at such termination for the same period as initially fixed in
the contract of partnership.
515.Important alterations in the immovable property of partnership, if useful and beneficial to the
partnership, is a mere act of administration and may be made upon the consent of the financial
majority.
516.Strangers are bound to inquire into the existence of any restriction of authority on the part of a
partner.
517.Misappropriation of one partner binds the partnership when the partner in the course of
business receives money or property of a third person and the money or property so received is
misapplied without the knowledge of the other partners.
518.If a person specially informs another or states by public advertisement that he has given a
power of attorney to a third person, the latter thereby becomes a duly authorized agent, in the
former case with respect to the person who received the special information, and in the latter case
with regard to any person even if the latter did not read the publication when he transacted with the
agent.
519.A special power of attorney is necessary to make gifts for charity or to employees in the
business managed by the agent.
520.A special power of attorney is necessary to loan or borrow money, unless the latter act be
urgent and indispensable for the improvement or preservation of the things which are under
administration.
521.An agent may be relieved by agreement from the obligation to make an accounting.
522.If the commission agent receives guaranty commission in addition to ordinary commission, the
agent shall bear the risk of collection and shall pay the principal the proceeds of the sale on the
same terms agreed upon with the purchaser unless the principal consented to the sale on credit.
523.If the third person does not know that the agent exceeded the scope of his authority, he may
hold the agent liable as well as the principal, even if he has not inquired into the authority of the
agent.
524.Agency by ostensible authority consists in the conscious permission of acts beyond those
powers granted.
525.If two or more principals have appointed an agent for a common transaction or undertaking,
they are jointly liable unless solidarity is agreed upon.
526.An agency is not revoked by the principal’s death if it has been constituted in the interest of a
third person without notice or knowledge of the interest.
527.An oral trust over personalty is valid.
528.There is no need for the trustee to render his account under oath.
529.The trustor cannot prohibit alienation of the subject property for a period more than 25 years.
530.Merger is a cause for the termination of an implied or express trust.
531.In an implied trust, the action to recover must be brought within five years from the issuance of
the title to the property.
532.A partner may transfer his interest to another over the objections of the other partners.
533.A secret and silent partner is one who has no voice in the management of the partnership and
is not known to the other partners.
534.The partnership begins from the moment it is recorded in the Securities and Exchange
Commission.
535.The fruits of the property promised to be contributed by a partner should also be delivered
without exception.
536.In case of imminent loss of the business of the partnership, an industrial partner shall be
required to contribute additional service to the partnership.
537.An industrial partner can engage in other business, but must not compete with the partnership,
unless otherwise stipulated.
538.A partner, as agent, cannot assign partnership property in payment of partnership debt.
539.Dissolution terminates the partnership.
540.Insolvency of a partner is one of the causes for voluntary dissolution of a partnership.
541.In case of an agreement between a partner, the partnership debtors and the persons
continuing the business, a partner may be discharged from liabilities.
542.Creditors of the old partnership are no longer considered as creditors of the continued
partnership.
543.The individual property of a deceased partner, whose name is being used by the continuing
partnership, shall be held liable for debts contracted after his death.
544.A limited partner may contribute services to the partnership.
545.A limited partner’s surname may appear in the partnership name but he becomes a general
partner with respect to the partners and third parties.
546.A substituted partner is one admitted to all the rights of a limited partner.
547.An assignee of a limited partner acquires the rights of the assignor.
548.A principal may be bound by an agent to render service without compensation.
549.In all cases, a special power of attorney is necessary to loan or borrow money.
550.Why is submission to arbitration not included in a special power to compromise?
551.There is an implied acceptance if the principal delivers his power of attorney to the agent and
the latter receives it without objection.
552.An agent may be exempted by stipulation from rendering an accounting.
553.If the principal does not mention the power to substitute at all, the agent may appoint one but
he is responsible for the acts of the substitute.
554.An agency is gratuitous unless compensation is agreed upon.
555.The accomplishment of the object of the agency extinguishes an agency even prior to the final
accounting.
556.An agency at will is revoked even if the revocation is not brought to the knowledge of the
agent.
557.When a partner by estoppel combines with another partner and on the strength of the
representation, contracted with a third person, both of them are liable pro rata.
558.A partner is a co-owner of the other partners with respect to the undistributed net profits of the
partnership.
559.Winding up may be done by a mere assignee in exceptional circumstance.
560.A decree of dissolution of a partnership may be granted upon application of the purchaser of
partnership interest in case of termination of the term or undertaking.
561.Except as necessary for winding up, dissolution terminates all authority of partners to act for
the partnership.
562.After dissolution, a partner can bind the partnership by any transaction which would bind the
partnership if dissolution had not taken place, provided the other party to the transaction had
extended credit to the partnership after the dissolution.
563.Dissolution necessarily discharges a partner of liability for obligations incurred thereafter.
564.When a partnership agreement is rescinded on the ground of fraud or misrepresentation,
partners who are not guilty shall have the right to subrogation for any payments made by them of
partnership liabilities.
565-569.What are the causes for involuntary dissolution of a partnership?
570-573.What are the liabilities of the partnership in their rank in the order of payment?
574-579Enumerate some rights of a limited partner?
580-585. What are the grounds for the extinguishment of agency?
586-595.Give ten instances when an agency couched in general terms would not be sufficient.
596.In what instance may an assignee of a partner’s interest judicially demand for dissolution at
any time?
597-599.Give three (3) examples of implied resulting trusts.
600++++.Write your original, poem, song, story, essay, or any creative literature about the covid-19
pandemic.