In a written contract of sale between S and B the true intention of the parties was not incorporated due

to the mistake of S but where B is innocent. Assume that there was a meeting of the minds between S
and B. Who can bring the action for reformation?

A. Neither B nor S
B. Both B and S
C. B only
D. S only

It is the gratuitous abandonment by the creditor of his right against the debtor

A. Remission
B. Dation en pago
C. Novation
D. Abandonment

X owes M P100,000.00 and he is also indebted to MNO Company in the amount of P400,000.00. M is the
managing partner of MNO Company and X’s obligations are already due and demandable. X paid to M
the amount of P90,000.00 and M issued a receipt applying the payment to his personal credit. What
shall be the right of the partnership against M in this case?

A. Demand 80% or P72,000.00 out of the payment made by X

B. Demand 50% or P45,000.000 out of the payment made by X
C. Demand the full amount paid by X
D. None because M credited the payment to his personal credit

Jeac has one year contract as movie actress with Paramount Picture. One morning, Kin his close friend
induce her to terminate his contract with Paramount picture and to enter a new contract with
Dimension Picture so that she can get her commission. Jeac sign a contract with Paramount picture

A. Paramount cannot sue Kin because she is not party to a contract

B. Paramount picture can sue Kin for inducing Jeac to violate his contract
C. Paramount has no remedy against Kin and Dimension because they are not party to a contract
D. Paramount can sue Dimension picture for damages for allowing Jeac to enter a new contract

Which of these constitutes fraud?

A. A misrepresentation made in good faith.

 B. Both b and c
C. The usual exaggeration in trade if the other party had an opportunity to know the facts
D. An expression of opinion which did not turn out to be true if made by an expert and the other
party relied on it

D made a promise to give a ring to C. Before D could deliver a ring to C, C borrowed D's ring. After a
week, D demanded the return of the ring that he had lent to C. C refused to return the ring claiming that
there was compensation between his obligation to return the ring of D and D's obligation to give him a
ring.. Based on the foregoing facts, which of the following statements is incorrect?

A. Only D may claim the compensation should C demand the delivery of a ring from him (D)
B. C is not entitled to claim compensation
C. C is entitled to claim compensation
D. D may oppose the compensation being claimed by C

1st Statement: In a universal partnership where its nature is not specified, the presumption is that a
universal partnership of all profits only is formed.

2nd statement: When the contribution to the partnership consists of personal property amounting to
P1,000,000 and real property amounting to P20,000 and the contract is entered verbally, the
partnership contract is void.

A. Both statements are false

B. 1 st statement is true and 2nd statement is false
C. 1 st statement is false and 2nd statement is true
D. Both statements are true

When the debtor abandons or transfers all his properties to the creditors so that the creditors may sell
the properties and out of the net proceeds the creditors recover their claims this is called

A. Tender of payment and consignation

B. Payment of cession
C. Remission
D. Dacion en pago

Statement 1: Payment shall be made to the person in whose favor the obligation has been constituted,
or his successor in interest, or any person authorized to receive it.
Statement 2: Payment made to the creditor by the debtor after the latter has been judicially ordered to
retain the debt shall not be valid

A. First statement is true; second statement is false

B. Both statements are true
C. First statement is false; second statement is true
D. Both statements are false

D owes C P6,000.00. No date for payment was stipulated by the parties

A. D is not required to pay unless C goes to court and asks the court to fix a period for the payment
B. C cannot require D to pay because there is no date for payment
C. D is not liable to C because the obligation is void there being no date of payment
D. C can require D to pay at anytime