A fault or act or omission of care which causes damage to another, there being no pre-

existing contractual relations between the parties.

(1 Point)
Quasi-contract

Quasi-delict

Negotiorium gestio

Solutio indebiti
4.Debtor's default in real obligation.
(1 Point)
Mora accipiendi

Mora solvendi ex-re

Mora solvendi ex-persona

Compensatio morae
5.One of the following obligations is not demandable at once. Which is it?
(1 Point)
D to give his car to C. No date was fixed by the parties for the date of delivery.

D to give his car to C until C completes his course in BS Accountancy.

D to give his car to C until X dies.

D to give C his car should C enroll in BS Accountancy.

6.Kind of law that talks about the divine inspiration in man of the sense of justice, fairness,
and righteousness, not by divine revelation or formal promulgation, but by internal dictates
of reason alone.
(1 Point)
Divine Law

State Law

Natural Law

Physical Law
7.Which of the following is true about the requisites of a valid contract?
(1 Point)
Consent of the communicating parties

Object, that may be certain or not certain, which is the subject matter of the contract

Cause of the obligation which is established (Article 1318)

None of the above

8.The right of the creditor that is enforceable against a definite debtor is
(1 Point)
Real right

Natural right

Moral right

Personal right
9.One of the following is a void obligation:
(1 Point)
Diluc is obliged to give Kaeya P5,000 if Kaeya goes to Paris, France.

Diluc is obliged to pay Kaeya P5,000 if Diluc goes to Tokyo, Japan.

Diluc is obliged to sell his land to Kaeya if he wins in the sweepstakes on a ticket that he had
already purchased.

Diluc is obliged to give Kaeya P10,000 if Kaeya cannot carry an elephant in one hand.
10.In case of an obligation subject to a suspensive condition, what is the effect if the object
of the obligation is lost through the fault of the debtor during the pendency of the
condition?
(1 Point)
The obligation is not extinguished.

The obligation is extinguished.

The creditor shall be liable to pay damages.

The debtor shall be liable to pay damages.

11.John Lee will give his grandson, Xiao, P200 every month until he finishes his first college
year. The obligation is with a:
(1 Point)
Suspensive period

Resolutory period

Legal period

Judicial period
12.Statement 1: Civil obligations are those which give the creditor or obligee a right of
action in courts of justice to enforce their performance.
Statement 2: Natural obligations is based on equity and natural law rather than positive law/
(1 Point)
Only Statement 1 is true.

Only Statement 2 is true.

Both statements are true.

 Neither of the statements are true.
13.A meeting of minds between two persons whereby one binds himself with respect to the
other to give something or to render some service is known as:
(1 Point)
Obligation

Consent

Contract

Stipulation
14.The following are essential feature of contract, except:
(1 Point)
Lesion

Freedom to contract

Mutual

Relative
15.Under Article 1308 of the Civil Code, mutuality of contracts is described as:
(1 Point)
The contract must bind at least two contracting parties; its validity and compliance cannot be left
to the will of one of them.

The contract must bind at least two contracting parties; its validity or compliance cannot be left
to the will of one of them.

The contract must bind both contracting parties; its validity and compliance can be left to the
will of one of them.

The contract must bind both contracting parties; its validity or compliance cannot be left to the
will of one of them.
16.The elements of a contract without which a contract would not exist are known as:
(1 Point)
Accidental elements

Natural elements

Special elements

Essential elements
17.The stages of a contract according to the order of their occurrence are:
(1 Point)
Birth, conception, and consummation

Conception, consummation, and birth

Conception, birth, and consummation

 Consummation, conception, and birth
18.Statement I. Contracts intended to defraud creditors.

Statement II. 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 the Land Registration Laws.

Statement III. If a contract should contain some stipulation in favor of a third person, he
may demand its fulfillment provided he communicated his acceptance to the obligor before
its revocation.

Statement IV. Any third person who induces another to violate his contract shall be liable
for damages to the other contracting party.
(1 Point)
All statements are true

Only one statement is true

All statements are false

Only one statement is false

19.Elements that accompany certain contracts unless set aside or suppressed by the parties
are known as:
(1 Point)
Accidental elements

Natural elements

Essential elements

Stipulated elements
20.The principle that contracting parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary to law, moral,
public policy and public order, refer to the principle of
(1 Point)
Liberty of contract

Consensuality of contract

Relativity of contract

Mutuality of contract
21.A stipulation in favor of a third person
(1 Point)
Stipulation pour autrui
 Stipulation pour over

Assignment of credit

Pactum commissorium
22.The bargaining point, that is, when negotiation is in progress (stage in the life of a
contract)
(1 Point)
Consummation

Conception

Perfection

Birth
23.Makari is a deaf-mute. Can she validly give consent, so she can enter into a valid
contract?
(1 Point)
No, because she is incapable of giving consent

No, because she is vulnerable to be defrauded

Yes, if she knows how to write.

Yes, because she can act for himself.

24.Statement 1: A void contract may not be ratified.

Statement 2: If the acceptance is qualified, it constitutes an option contract.

(1 Point)
Only Statement 1 is true.

Only Statement 2 is true.

Both statements are true.

Neither of the statements are true.

25.It is a contract where the parties hide their real agreement to which they are bound as a
rule.
(1 Point)
Void contract

Relatively simulated contract

Absolutely simulated contract

Onerous contract
26.One of the following is not a requisite of cause in a contract. Which is it?
(1 Point)
 It must exist.

It must not be false.

It must be clearly stated in the contract.

It must be lawful.
27.Statement 1: Cause or consideration is similar to the motives of the contracting parties.

Statement 2: Under Article 1354, although the cause is not stated in the contract, it is
presumed that it exists and is lawful, unless the debtor proves the contrary
(1 Point)
Only Statement 1 is true.

Only Statement 2 is true.

Both statements are true.

Neither of the statements are true.

28.Undue influence is where one takes improper advantage of his power over the will of
another, depriving the latter of a reasonable freedom of choice. While fraud  is where:
(1 Point)
The other party was induced to enter into a contract where he would not have done so in the
first place.

It was done through insidious words or machinations of one of the contracting parties.

Both a and b

None of the above

29.The adoption or affirmation of a contract which is defective because of a party’s vitiated
consent or incapacity.
(1 Point)
Annulment

Rescission

Reformation

Ratification
30.Buer, an unemancipated minor, ordered food sold by Ei and paid it appropriately. State
the status of the contract.
(1 Point)
Void

Voidable

Unenforceable
 Valid and Enforceable
31.The following are incapable of giving consent to a contract, except:
(1 Point)
16 years old teenagers

Deaf-mutes who do not know how to write

Insane persons

Persons under the state of drunkenness

32.Which of the following is true about the requisites of a valid contract?
(1 Point)
Consent of the communicating parties

Object, that may be certain or not certain, which is the subject matter of the contract

Cause of the obligation which is established (Article 1318)

None of the above

33.What is the general rule in forming contracts?
(1 Point)
Both parties must provide something of value, although it doesn't have to be equal.

Contracts shall be obligatory, provided all the essential requisites for their validity are present.

A contract which is required by law for its efficacy to be in certain specified form.

None of the above

34.When can we consider form as an essential requisite of a contract?
(1 Point)
When the law requires that a contract be in certain form for its validity.

A legally enforceable agreement.

The manner in which a contract is executed or manifested.

Contracts are binding upon the contracting parties in whatever form they may have been
entered into as long as all the essential requisites for their validity are present.
35.Which of the following must appear in a public document

I. Acts and contracts which have for their object the creation, transmission, modification or
extinguishment of real rights over immovable property; sales of real property or of an
interest therein a governed by Articles 1403, No. 2, and 1405;

II. The cession, repudiation or renunciation of hereditary rights or of those of the conjugal
partnership of gains;

III. The power to administer property, or any other power which has for its object an act
appearing or which should appear in a public document, or should prejudice a third person;

IV. The cession of actions or rights proceeding from an act appearing in a public document
(Art. 1358).
(1 Point)
I, II, II

II, III, IV

I, III

I, II, III, IV
36.It is that remedy allowed by law by means of which a written instrument is amended or
rectified so as to express or conform to the real agreement or intention of the parties when
by reason of mistake, fraud, inequitable conduct, or accident, the instrument fails to express
such agreement or intention.
(1 Point)
Annulment

Instrumentation

Reformation

Concealment
37.Statement 1: There shall be no reformation in the following cases:
(1) Simple donations inter vivos wherein no condition is imposed
(2) Wills; When the real agreement is void
(3) When the real agreement is void

Statement 2: The procedure for the reformation of the instruments shall be governed by
the rules of court to be promulgated by the Supreme Court.
(1 Point)
Only Statement 1 is true.

Only Statement 2 is true.

Both statements are true.

Neither of the statements are true.

38.This is a mistake of fact that is common to both parties of the instrument which causes
the failure of the instrument to express their true intentions.
(1 Point)
Mutual Mistake

Wills

Reformation
 Donation
39.What should be followed: evident intention of parties or terms of the contract?
(1 Point)
It is the determination of the meaning of the terms or words used by the parties in their written
contract.

Contracts should be fulfilled according to the literal sense of their stipulations, if the terms of the
contract are clear and unequivocal.

In a contract with general and special provisions covering the same subject matter, the special
provisions take control when the two cannot stand together.

It is a cardinal rule in the interpretation of contracts that the intention of the contracting parties
should always prevail because their will has the force of law between them.
40.Which of the following is not kind of Defective Contracts
(1 Point)
Rescissible

Validable

Unenforceable

Void
41.A defective contract which is entered into by guardians whenever the wards whom they
represent suffer lesion by more than one-fourth of the value of the things which are the
object thereof.
(1 Point)
Rescissible contract

Voidable/annullable contracts

Unenforceable contract

Void
42.Contracts cannot be sued upon or enforced unless they are ratified. It is between void
and voidable. VOID or INEXISTENT CONTRACTS – absolutely null and void.
(1 Point)
Rescissible contract

Voidable/annullable contracts

Unenforceable contract

Void
43.Which of the following is not included in the Rescissible Contracts?
(1 Point)
Contracts are entered into to defraud existing creditors
 Contracts refer to things in litigation

Contracts in representation of absentees

Contracts of Lawyer
44.A, B, and C are solidary debtors of X, Y, and Z, solidary creditors, in the amount of P2,700.
X renounces the whole obligation without the consent of Y and Z. The debtors accepted the
renunciation. What is the legal effect of renunciation?
(1 Point)
The obligation cannot be extinguished without the consent of either Y and Z.

The obligation cannot be extinguished without the consent of both Y and Z.

The whole obligation is extinguished.

The obligation is extinguished up to the amount owed to X only.

45.D owes C P10,000. T offers to pay D’s obligation and tells D that D need not reimburse
him. However, D does not give his consent to T’s offer not to be reimbursed. C, nonetheless,
accepts the payment from T. Was the payment valid?
(1 Point)
The payment is valid insofar as C is concerned but D’s consent is necessary for it to be deemed
as a donation.

The payment is valid insofar as C is concerned but D’s consent is not necessary for it to be
deemed as a donation.

The payment is invalid insofar as C is concerned but D’s consent is necessary for it to be deemed
as a donation.

The payment is invalid insofar as C is concerned and D’s consent is no tnecessary for it to be
deemed as a donation.
46.Xiao owes Qiqi the sum of P15,000 under an oral contract perfected in 2012. In 2023,
they crossed each other's way in a reunion. Xiao decided to pay his debt. Can Xiao recover
what he has paid now that he's having financial difficulty because of the recent inflation?
(1 Point)
Yes. Since the debt is prescribed, Xiao can recover the amount he paid.

No. The recovery of the debt payment, which is already one year, has already elapsed.

No. The payment of debt is considered a natural obligation.

Yes. It is only an oral contract, so he can recover the amount he paid.

47.On February 14, 2022, Itto agreed to give Kuki a horse if she passes the October 2022
CPA Licensure Examination. The horse gave birth to a colt on August 18. Who has the right
to the colt if Kuki passed the examination?
(1 Point)
Itto, the colt is not included in the obligation of Itto
 Itto, because he was still in the possession of the horse

Itto, the condition is not yet fulfilled by the date of birth of the colt

Kuki, the right over the horse and the colt retroacts to February 14
48.A, B, C are siblings who inherited a IO-storey building from their parents. They agreed in
writing to maintain it as a co-owned property for leasing out and to divide the net profits
among themselves equally for a period of 20 years. In the 9th year, A wanted to get out of
the co-ownership so he could get his 1/3 share in the property. B and C refused, saying A is
bound by their agreement to keep the co-ownership for 20 years. Are B and C correct?
(1 Point)
No, because the agreement to keep the thing undivided shall be valid at the most for ten years.

Yes, The law provides that none of the co-owners shall be obliged to remain in the co-ownership
and it is the right of a co-owner to ask for partition of the co-ownership anytime.

No, A should be bound by their agreement

None of the Above

49.S sold his cabinet to B for P5,000. The parties gave their consent freely to the contract
before its perfection. After delivery of the cabinet to B and his payment of the price to S, B
was informed by N, his neighbor that B paid too much for the cabinet since he (N)knew of a
similar item that is sold for a lower amount. B now
wants to set aside the contract because he believed he got a bad bargain. Decide.
(1 Point)
B may set aside the contract based on the principle of mutuality of contracts.

B may not set aside the contract based on the principle of mutuality of contacts.

B may set aside the contract based on the principle of relativity of contracts.

B may not set aside the contract based on the principle of relativity of contracts.
50.A and B entered into a joint venture contract whereby B agreed to put up a restaurant on
the lot of A. N, A’s neighbour who owned a lot across A’s lot, learned of the transaction
between A and B. Anticipating that many customers would patronize the restaurant, N
decided to improve his vacant lot for parking.
He incurred P20,000 for a guard house and other improvements which he had not yet paid
to his contractor. Later, however, A and B mutually cancelled their earlier contract and
entered into a new one whereby B agreed to put up the restaurant on another lot belonging
to A which was located about 100 meters from the original area. N learned of the
cancellation of the contract and decided that he would sue A and B for damages he
allegedly sustained by reason thereof. Decide.
(1 Point)
N is entitled to sue A and B for the damages he sustained and this is a case of a stipulation pour
autrui.
 N is entitled to sue A and B for the damages he sustained but this is not a case of a stipulation
pour autrui.

N is not entitled to sue A and B for the damages he sustained and this is not a case of a
stipulation pour autrui.

N is not entitled to sue A and B for the damages he sustained but this is a case of a stipulation
pour autrui.
51.S and B orally entered into a contract whereby S sold his one-year production of
mangoes to B for P100,000. B gave a downpayment of P20,000 for which S issued a receipt.
What is the status of the contract between S and B?
(1 Point)
The contract is valid.

The contract is invalid.

The contract is voidable.

The contract is void.

52.On June 1, S and B entered into a contract of sale involving the horse of S for P10,000.00.
The terms of the contract provide that S must deliver the horse on June 30, while B must
pay the price on June 25. In the place of S and B, it is the usage that when one sells a horse,
he must place a horseshoe on its hooves. However, this is not stated in the contract. To
what consequences are the parties bound?
(1 Point)
S must deliver the horse on June 30 even without horseshoes on the hooves.

S must deliver the horse on June 30 and put horseshoes on the hooves only when it is
stipulated.

S is only obligated to deliver the horse on June 30.

S must deliver the horse on June 30 and put horseshoes on the hooves even when it is not
stipulated.
53.D obtained a loan from C amounting to P100,000.00. The parties agreed that the loan
shall bear an interest of 1% per month to be paid by D to X until the principal is paid in full.
Suppose X did not receive the 1% interest payment from D, can X sue on the contract?
(1 Point)
Yes. X can sue on the contract, this is a stipulation pour autrui.

Yes. X can sue on the contract although he is not a party.

No. No. X cannot sue on the contract because he is not a party.

Both A and B are correct.

54.An oral contract of sale of a piano worth P50,000 between Venti, the seller and a minor,
and Hutao, the buyer and an insane person. The piano has been delivered and the price is
already paid. State the status of the contract.
(1 Point)
Valid and Enforceable

Voidable

Void

Unenforceable
55.Thoma offers to landscape Ayato's house for P250,000. He gives Ayato 10 days within
which to make up his mind. On the 10th day, Thoma decided to withdraw his offer. Ayato
also made up his mind on the same day and decided to accept the offer. Ayato
communicated it the next day. Is the offer still effective?
(1 Point)
Yes, even there is no consideration Ayato decided to accept the offer within the option period.

No, since there is no consideration and Thoma decided to withdraw the offer within the option
period.

No, the option period elapsed, and whether there is a consideration or none, it is still effective.

Yes, the option period elapsed, and whether there is a consideration or none, it is now
ineffective.
56.Baizhou, the guardian of Qiqi, sold a hectare from Qiqi’'s farm for P1,500,000.
The value of the land is P2,500,000. The contract is:
(1 Point)
Rescissible

Voidable

Unenforceable

Valid and Enforceable

57.Under a contract executed on November 1, 2023, Yae obliged herself to give a specific
horse to Raiden on December 10, 2023. On December 8, 2023, Raiden demanded the
delivery of the horse, but Yae did not comply. The following day, the horse was struck by
lightning and died instantly
(1 Point)
The obligation of Yae is not extinguished because Yae was in default.

The obligation of Yae is not extinguished because Yae can deliver another horse.

The obligation of Yae is extinguished because the loss is due to a fortuitous event and Yae was
not in default.

The obligation of Yae is not extinguished because the demand was not made on the due date.
58.Sage, fearing that his creditor Sova, would go after his only parcel of land to satisfy his
claim for payment of Sova’s debt, sold his land to Jett who did not know of Sova’s intention.
(1 Point)
 Sage can ask for annulment of the sale as this is a voidable contract.

Sage may ask for damage against Jett since he was damaged by the sale.

Sage can file an action for rescission of the sale.

Sage cannot ask for the rescission of the sale

59.M wants to sell his land to O but the latter does not want to buy the same, M forced N to
buy his land. The land, the contract;
(1 Point)
Not binding upon N since his consent was vitiated.

It is unenforceable as against N but not against M

May be ratified expressly or tacitly by M

It is valid, binding and enforceable
60.Gino was appointed as the guardian of May who owns a parcel of land value at Php 1M.
M sold the land only for Php. 7M to April. The contract is defective because;
(1 Point)
Unenforceable

Rescissible

Voidable

Void
61.Dee borrowed a sum of money from Cee with Gee as guarantor. The loan is inwriting but
the guarantee is oral. Dee failed to pay Cee who now is demanding payment from Gee. Can
Gee be compelled to pay?
(1 Point)
Yes, because he is the guarantor obliged to pay in case the debtor defaults.

No, because the guarantee is void having been orally made.

No, because the guarantee is unenforceable against Gee, it being oral.

Yes, because the guarantee is enforceable, writing is not needed.

62.Anya sold to Gonker a fake Rolex watch on January 3, 2001, discovering that the watch
he bought was an imitation. The law provides that he can annul the sale as a voidable
contract within four years. Prescription starts from;
(1 Point)
January 3, 2001 when the sale was perfected

The time of delivery of the watch to Gonker.

The time they first talked about the sale of the watch.

January 13, 2001 when the fraud was discovered by Gonker.