Study Guide 5

Name: Audrey Gayle Gervacio

Course & Yr: BSMAC 1 D

Select the best answer. Explain briefly citing the legal basis for your answer.

1. A borrowed from B P5,000,000 and agreed that in case of non-payment on the date
stipulated, A’s house and lot would be sold to B for the same amount. Is the stipulation
valid?
a. It is valid because it does not partake of pactum commissorium.
b. It is not valid since it is pactum commissorium.
c. It is valid if A would have the option not to sell the house and lot.
d. It is not valid because the price depends upon the will of the buyer only.

Explanation: The creditor cannot appropriate the things given by way of pledge or mortgage, or
dispose off them. Any stipulation to the contrary is null and void.

2. D owes C the amount of P2,000,000. Without knowledge or against the will of D, X paid
C the entire loan of D. In this case:
a. X can demand reimbursement from D.
b. X cannot demand reimbursement from D because he paid without the consent of D.
c. X can recover from D with interest.
d. It is optional on the part of D to reimburse X.

Explanation: According to Article 1236 of the Civil Code, “the creditor is not bound to accept
payment or performance by a third person who has no interest in the fulfillment of the obligation,
unless there is a stipulation to the contrary. Whoever pays for another may demand from the
debtor what he has paid, except that if he paid without the knowledge or against the will of the
debtor, he can recover only insofar as the payment has been beneficial to the debtor.” Meaning,
X can only demand D the amount he has paid since he paid without D’s knowledge.
3. A obliged himself to deliver to B a brand new Toyota Corolla car on February 3, 2008.
On the said date, while A was driving the car he was to deliver to B, a band of robbers held
him up and forcibly took the car from him. Was the obligation of A extinguished?
a. A’s obligation to deliver the car agreed upon was extinguished due to fortuitous event.
b. A’s obligation to deliver is converted to monetary liability for damages.
c. A’s obligation was not extinguished because fortuitous event applies only to determinate
things.
d. A’s obligation was extinguished because he was not in delay when the loss due to fortuitous
event took place.

Explanation: According to Article 1262 of the Civil Code, an obligation which consists in the
delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the
fault of the debtor, and before he has incurred in delay. The robbery that happened was
unexpected and unanticipated, thus it is a fortuitous event. A was not negligent during the
delivery of the object, thus he is not liable for the damages.

4. D mortgaged his land to C for a loan of P2,000,000. The foreclosure of mortgage took
place for failure of D to pay his debt and the land was sold for P2,500,000. The excess shall
pertain to:
a. C, he being the mortgagee unless otherwise stipulated
b. D, he being the mortgagor
c. D, with or without stipulation to the contrary
d. C, with or without stipulation to the contrary

Explanation: Article 1255 of the Civil Code states that “the debtor may cede or assign his
property to his creditors in payment of his debts. This cession, unless there is stipulation to the
contrary, shall only release the debtor from responsibility for the net proceeds of the thing
assigned. The agreements which, on the effect of the cession, are made between the debtor and
his creditors shall be governed by special laws.”
5. When the fulfillment of the valid resolutory condition depends upon the sole will of the
debtor
a. The obligation is valid but the condition is disregarded
b. Both the condition and the obligation will be void
c. Both the condition and obligation will be valid
d. The obligation shall be void but the condition is valid

Explanation: When a lawful resolutory condition involves the debtor's conduct, fulfillment of
such condition may be fully dependent on his will.

6. An agricultural land is owned by A and D pro-indiviso. D sells his ½ part to R, who is the
owner of the adjoining land. When A learned of the sale, he tried to redeem the portion
sold by D by reimbursing R with the purchase price and expenses. Which is not correct?
a. A can compel R to permit redemption
b. A co-owner of thing may exercise the right of redemption in case the shares of the other co-
owners or any one of them are sold to a third person
c. The sale to R is valid but A can elect to exercise his right of redemption
d. The sale to R is valid and as adjoining land owner he is the one entitled to redemption

Explanation: A valid contract must have the consent of the parties to the contract, an object certain
that is the main subject of the contract, and an established cause of the obligation.

7. Which of the following statements is not correct?

a. The vendor is bound to deliver the thing sold in its accessions and accessories in the condition
in which they were upon the perfection the contract
b. All the fruits of the thing sold shall pertain to the vendor from the day on which the
contract was perfected
c. The vendor shall not be bound to deliver the thing sold, if the vendee has not paid him the
price, or if no period for the payment has been fixed the contract
d. The vendor is bound to transfer the ownership of and deliver, as well as warrant the thing
which is the object of sale
Explanation: Article 1537 of the Civil Code states that, the vendor is obliged to deliver the thing
sold, as well as its accessions and accessories, in the condition in which they were at the time the
contract was completed. All fruits shall pertain to the vendee from the day where the agreement was
perfected.

8. In 2010, A promised to give to B his land if B passes the CPA Board Examination in
2011. If the condition is fulfilled, does A also give the fruits for the period of one year?
a. Yes, in obligation to give, once the condition is fulfilled the obligation shall retroact to the day
of the constitution of the obligation
b. Yes, the creditor shall appropriate the fruits and interest, unless there is contrary intent
c. No, if the condition is unilateral, the debtor shall appropriate the fruits and interest
unless there is contrary intent
d. A and B will divide the fruits equally

Explanation: According to Article 1187 of the Civil Code, if the obligation is unilateral, the
debtor shall appropriate the fruits and interests received, unless from the nature and
circumstances of the obligation it should be inferred that the intention of the person constituting
the same was different.

9. A take or leave it contract as the entries are already in the instrument and the parties to
the contract either accept it or reject is
a. Contract of adhesion
b. Auto contract
c. Consensual contract
d. Real contract

Explanation: A contract of adhesion is a type of contract in which one party, typically a

business, drafts the contract in a way that favors them and then presents the contract to the other
party, who must either accept or reject it.
10. A and B promised to deliver a particular car to C valued P200, 000. If C demands the
delivery from A and B, and it is only B who is willing to deliver, which of the following is
the right of C?
a. To ask from B the delivery of the car because the object is indivisible
b. To ask for total rescission because of their failure what is incumbent upon them
c. To ask from A and B the monetary consideration of P200,000, representing the value of
the car plus damages
d. To ask from A the payment of damages

Explanation: According to Article 1209 of the Civil Code, if the division is impossible, the right
of the creditors may be prejudiced only by their collective acts, and the debt can be enforced only
by proceeding against all the debtors. If one of the latter should be insolvent, the others shall not
be liable for his share.

11. S, minor, owns a specific ring valued at P50, 000. B, capacitated, by means of fraud
induces S to sell the ring to him for P30, 000, which S did and effected delivery to B. The
contract is not in writing. Which is correct?
a. The contract is valid and B became the owner of the ring
b. The contract remains unenforceable because it falls under the statue of frauds
c. The contract is rescissible because the ward suffered lesion by more than ¼ of the value
d. The contract is voidable and B can ask for annulment within the period prescribed by law

Explanation: Article 1427 of the Civil code explains that, when a minor between eighteen and
twenty-one years of age, who has entered into a contract without the consent of the parent or
guardian, voluntarily pays a sum of money or delivers a fungible thing in fulfillment of the
obligation, there shall be no right to recover the same from the obligee who has spent or
consumed it in good faith.
12. As a rule for annulment must be brought within four years. Which of the following is
correct with respect to the reckoning of the beginning of the prescriptive period?
a. In cases of intimidation, violence and undue influence, the period begins from the time the
defect in the consent arises
b. In case of fraud, the period begins to run from the discovery thereof
c. In case of mistake, the period begins to run from the time it was committed
d. In cases of contracts entered into by minors or other incapacitated persons, the period
begins from the time guardianship arises

Explanation: According to Article 1391 of the Civil Code, The action for annulment shall be
brought within four years. This period shall begin: In cases of intimidation, violence or undue
influence, from the time the defect of the consent ceases. In case of mistake or fraud, from the
time of the discovery of the same.

13. On July 4, 2010, A, a movie producer, met B, a movie actress met at the lobby of Manila
Hotel. A informed B that she is producing a movie, the filming of which would start on
September 1, 2010 and that she was offering B the lead role for a fee of P1, 000. B accepted
the offer and shook hands with A to seal their agreement and A gave B a check for P200 as
initial payment. On September 1, 2010, A called B for shooting of the movie but B refuses
to honor the agreement saying that it was not enforceable, not being in writing, Which is
correct?
a. A can enforce the contract against B because it was mutually agreed upon
b. A can require B to shoot the movie because B had accepted benefits under contract
c. B may just return the payment because the agreement was made orally
d. B is not bound under her agreement with A because the contract involves an obligation to do

Explanation: As long as an agreement satisfies all three of the aforementioned elements, it is a

valid contract, whether or not it is in writing. As a result, a contract is a contract regardless of its
form, unless the law requires it to be in writing in order to be valid or enforceable.

14. A, the husband of B, uses force and violence to get B’s consent, to a contract where B
sold and delivered her necklace to C and suffered a lesion of more than ¼ of the value of
the property. Which is correct?
a. B can ask rescission because she suffered lesion of more than ¼ of the value of the property
b. The contract of sale is voidable because the consent of B is vitiated
c. The contract of sale is without defect hence B acquires good title over the necklace
d. The contract of sale is void because husband and wife cannot sell property to each other

Explanation: The following contracts are voidable or annullable, even though there may have
been no damage to the contracting parties:
(1) Those where one of the parties is incapable of giving consent to a contract;
(2) Those where the consent is vitiated by mistake, violence, intimidation, undue influence or
fraud.
These contracts are binding, unless they are annulled by a proper action in court. They are
susceptible of ratification.

15. A sold to B her necklace for P3, 000. A delivered the necklace to B who is bound to pay
the price but failed to do so. Is B in delay in paying the purchase price?
a. Yes, if demand would be useless
b. Yes, demand is not necessary
c. No, unless there is stipulation
d. No, unless A makes a demand

Explanation: B is late in paying the price for the necklace. A does not necessarily need to
demand for the price for B to be considered to have delayed in payments. As long as the
necklace has been delivered and payments have not been made, then B is in delay in giving the
purchase price.
16. An agreement where the pledgor or mortgagor will execute a contract transferring
ownership of the property pledged or mortgaged to the pledge or mortgagee in case of
default, such execution of the contract will result to
a. Pactum commissorium
b. Payment by cession
c. Dacion en pago
d. Tender of payment

Explanation: A provision in a pledge or mortgage that calls for automatic forfeiture (ie. that
ownership of the pledged or mortgaged thing passes to the creditor through mere default of the
debtor). This stipulation is null and void because it is contrary to morals and law.