1. A mortgages his land to B and the mortgage is registered in Registry of Property.

Afterwards, A
sells the land to C, Is the mortgage contract binding upon C?
a. No because C is not a party to the contract.
b. No because there is no privity between B and C.
c. Yes even if the mortgage contract is not registered.
d. Yes because in contracts creating real rights, third persons who come into possession of the
object of the contract are bound thereby, subject to the provisions of the Mortgage Law and
Land Registration Laws.

2. A is a creditor of B. In order to escape the liability to A, B sells all his property to C. May A ask for
rescission of the contract of sale between B and C?
a. No because A is not a party to the contract.
b. No because A has no right of rescission.
c. Yes because creditors are protected in cases of contracts intended to defraud them.
d. Yes even if the right of levy and execution and accion subrogatoria are still available.
3. A contract was entered into between Y and Z. X induces Y to violate the contract. May Z file an
action for damages against X?
a. No because A is not a party to the contract.
b. No because it will be violative of relativity of contract.
c. Yes even if X has no knowledge of the contract between Y and Z.
d. Yes because any third person who induces another to violate his contract shall be liable for
damages to the other contracting party.

4. A borrowed P 10,000 from B and entered into a contract of real estate mortgage involving his car. A
is also indebted to C in the amount of PI 00,000 but the latter cannot attach the car because of the
mortgage. May C file an action for declaration of nullity of contract of real estate mortgage?
a. Yes because a void contract may be assailed by a third person directly affected by such void
contract. b. No because C is not a party to the contract.
c. No because it will be violative of relative of contract.
d. Yes but only if A and B will give consent to the suit.

5. As an exception to relativity of contract, which contracts may be assailed by a third person? a.

Voidable contract
b. Rescissible contract intended to defraud creditor and void contract that directly affected a
third person c. Unenforceable contract
d. Valid contract

6. Consensual contracts are perfected by

a. Delivery of the object of a contract.
b. Execution of formalities required by law.
c. Mere consent by contracting parties.
d. Provisions of the law,

7. Real contracts are perfected by

a. Delivery of the object of a contract.
b. Execution of formalities required by law.
c. Mere consent by contracting parties.
d. Provisions of the law.

8. Real contracts, such as contracts of deposit, of pledge, of loan or muttum and of commodatum are
perfected by
a. Delivery of the object of a contract.
b. Execution of formalities required by law.
c. Mere consent by contracting parties.
d. Provisions of the law.