Reviewer Suarez 2011 TFMCQ Obligations and Contracts

TRUE OR FALSE – OBLIGATIONS – SUAREZ 2011
1. Efficient cause is the legal or juridical tie which binds the parties to the obligation. (TRUE)
2. Prestation is the object or subject matter of the obligation. (TRUE)
3. Obligations arising from contracts have the force of law between the contracting parties and
should be complied with in good faith. (TRUE)
4. Without demand from the creditor, the debtor, even if he fails to perform the obligation on the
agreed date, does not incur delay. (TRUE)
5. Suspensive condition is one which extinguishes the obligation upon the happening of the condition.
(FALSE – RESOLUTORY CONDITION)
6. Every person obliged to give something is also obliged to take care of it with the proper diligence
of a good father of a family. (TRUE)
7. Unless the law or stipulation of the parties requires another standard of care, the debtor is obliged
to take care of the thing with the proper diligence of a good father of a family. (TRUE)
8. As a rule, the creditor has a right to the fruits of the thing from the time the obligation is perfected.
(FALSE – TIME THE OBLIGATION TO DELIVER IT ARISES)
9. As a rule, the creditor has a right to the fruits of the thing from the time the obligation to deliver it
arises. (TRUE)
10. Payment made by a third person who does not intend to be reimbursed by the debtor is deemed
to be a donation, which requires the debtor's consent. If the debtor's consent is not given, the
obligation is not extinguished. (FALSE)
11. In question No. 10, if the debtor's consent or permission is not given, but the third person paid the
creditor, his right is to proceed against the creditor, not the debtor, for reimbursement. (FALSE)
12. Payment made by the debtor to a third person who is not the creditor shall never extinguish the
obligation. (FALSE)
13. D binds himself to pay C P10,000. The court in this case shall fix the period since the parties failed
to fix the period. (FALSE)
14. Obligation for whose fulfillment a day certain has been fixed, shall be demandable only when
that day comes. Obligation with a resolutory period takes effect at once but terminates upon arrival
of the day certain. (TRUE)
15. D binds himself to pay "little by little" The obligation is for the benefit of the debtor. (FALSE)
16. The concurrence of two or more debtors and two or more creditors in the same obligation is
presumed to be a solidary obligation. (FALSE)
17. The creditor acquires real rights over the thing from the moment the thing is delivered and not
from the time the obligation to deliver it arises. (TRUE)
18. Solidarity may exist although the creditors and the debtors may not be bound in the same
manner and by the same periods and conditions. (TRUE)
19. In obligations with a penal clause, the penalty shall substitute for damages and the payment of
interests in case of noncompliance. (TRUE)
20. The nullity of the principal obligation does not carry with it that of the penal clause. (FALSE -
CARRIES)
21. Mora is a term used to denote delay or default in the performance or fulfilment of an obligation.
Mora accipiendi is that delay or default which is attributable to both parties in reciprocal obligations.
(FALSE – COMPENSATIO MORAE)
22. The delivery to and acceptance by the creditor of a certified cashier’s check produces payment
of the debtor's obligation. (FALSE – ONLY WHEN IT IS CASHED)
23. Loss of a generic thing which is the object of an obligation, even without the fault of the debtor,
does not extinguish the debtor's obligation. (TRUE)
24. An example of debt that may be compensated is that arising from a deposit. (FALSE)
25. Interests are recoverable if obligations consist in payment of money upon judicial demand. (TRUE)
26. Responsibility arising from negligence or culpa in the performance of an obligation is

demandable. Culpa aquiliana is that fault or negligence which results from breach of contract.
(FALSE – CULPA CONTRACTUAL)
27. Negligence signifies the idea of delay in the fulfilment of an obligation. (FALSE - MORA)
28. A person is obliged to deliver a determinate thing including its accessions and accessories, even
though they may not have been mentioned in the agreement. (TRUE)
29. An example of an obligation with a period is when A promises to pay B P10,000 one month from
the death of C. (TRUE)
30. Solidarity cannot exist if the creditors and the debtors are not bound in the same manner and by
the same periods and condition. (FALSE)
31. A solidary debtor is at all times entitled to reimbursement from his co-debtors if the pays for their
obligations. (FALSE – JOINT DEBTOR)
32. When the debtor is guilty of fraud in the fulfillment of an obligation, a creditor can demand
payment of damages and interest in addition to the penalty. (TRUE)
33. In joint obligation, if one of the debtors is insolvent, the others shall not be liable for the payment
of his share. (TRUE)
34. A solidary creditor cannot assign his rights without the consent of the others. (TRUE)
35. In case an extraordinary inflation or deflation of the currency stipulated should supervene, the
value of the currency at the time of the maturity of the obligation shall be the basis of payment.
(FALSE – TIME OF ESTABLISHMENT OF OBLIGATION)
36. If the debt produces interest, payment of the interest shall not be deemed to have been made
until the principal has been covered or paid. (FALSE)
37. In alternative obligation, both parties have equal rights of choice. (FALSE)
38. The condition not to do an impossible thing shall render the obligation demandable at once.
(TRUE - VOID)
39. Payment by cession does not always extinguish the whole obligation. (TRUE)
40. In order that the creditor can demand the penalty in an obligation with a penal clause, it is
necessary that he show proof of actual damage suffered by him. (FALSE)
41. In an alternative obligation, the right of choice belongs to the creditor, unless it has been
expressly granted to the debtor. (FALSE – RIGHT BELONGS TO DEBTOR)
42. The concurrence of 2 or more creditors of 2 or more debtors in one and the same obligation does
not imply that each one of the creditors has a right to demand, or that each one of the debtors is
bound to render entire compliance with the obligation. (TRUE)
43. Novation which consists in substituting a new debtor in the place of the original one, may not be
made without the consent of the debtor. (FALSE)
44. In delegation, the insolvency of the new debtor will never revive the original debtor's obligation.
(FALSE)
45. In expromission, the insolvency of the new debtor may at times revive the original debtor's
obligation. (FALSE)
46. An obligation with a period may at times become a pure obligation demandable at once. (TRUE)
47. Fixed, savings, and current deposits made with a bank are considered money deposits but are
governed by contract of loan susceptible of compensation. (TRUE)
48. If the original obligation was subject to a suspensive or resolutory condition, the new obligation
shall be under the same condition, unless it is otherwise stipulated. (TRUE)
49. There is legal subrogation when, even without the knowledge of the debtor, a third person, not
interested in the obligation, pays the creditor. (FALSE)
50. The nullity of the penal clause carries with it that of the principal obligation. (FALSE – NOT CARRY)
51. There is no delay in an obligation not to do something. (TRUE)
52. The payment of debts in money shall be made in the currency stipulated, and if it is not possible
to deliver such currency, then in the currency which is legal tender in the Philippines. (TRUE)
53. The creditor is not compelled to accept payment in check or other negotiable instruments. (TRUE)
54. When the fulfillment of the suspensive or resolutory condition depends upon the sole will of the
debtor, the conditional obligation shall be void. (FALSE)
55. The thing is deemed lost when it perishes, or goes out of commerce, or disappears in such a way
that its existence is unknown, or it cannot be recovered. (TRUE)
56. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be
deemed to be conditional. (FALSE – OBLIGATION WITH A PERIOD)
57. When the conditions have for their purpose the extinguishment of an obligation to give, the
parties, upon the fulfillment of said conditions, shall return to each other what they have received.
(TRUE)
58. Whenever in an obligation, a period is designated, it is presumed to have been established for the
benefit of the debtor, unless from the tenor of the same, it should appear that the period has been
established in favor of the creditor. (FALSE)
59. Whenever in an obligation, a period is designated, it is presumed to have been established for the
benefit of both the creditor and the debtor. (TRUE)
60. If an obligation states that the debtors bind themselves jointly and severally, the obligation is
considered joint. (FALSE - SOLIDARY)
61. Proof of actual damage suffered by the creditor is not necessary in order that the penalty in an
obligation with a penal clause may be demanded. (TRUE)
62. An obligation payable "as soon as possible" is an obligation with a period for the benefit of both
the debtor and the creditor. (TRUE)
63. A stipulation to pay a domestic obligation in foreign currency shall render it void but the
obligation remains to be valid. (FALSE)
64. Payment of the debtor’s obligation may be made by a third person even without the knowledge
and consent of the debtor. (TRUE)
65. Payment made by one who does not have the free disposal of the thing due and capacity to
alienate it is not valid. (TRUE)
66. Payment to an incapacitated creditor is not valid, except when he has kept the thing delivered,
or insofar as the payment has been beneficial to him. (TRUE)
67. Unless it is otherwise stipulated, the extrajudicial expenses required by the payment shall be for the
account of the creditor. (FALSE – DEBTOR)
68. In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind
does not extinguish the obligation. (TRUE)
69. Condonation or remission is generally gratuitous. (FALSE – ESSENTIALLY GRATUITOUS)
70. The renunciation of the principal debt shall extinguish the accessory obligations; but the waiver of
the latter shall leave the former in force. (TRUE)
71. Solutio indebiti is a contract. (FALSE – QUASI-CONTRACT)
72. Ten sacks of corn cannot be compensated legally by ten sacks of rice. (TRUE)
73. In civil obligation, the fulfillment of the obligation depends solely on the conscience of the person.
(FALSE – NATURAL OBLIGATION)
74. Civil fruits are those produced by lands of any kind through cultivation. (FALSE - NATURAL)
75. A quasi-contract does not require consent of the contracting parties. (TRUE)
76. A is obliged by contract to deliver a specific car to B. A is not obliged to deliver the "jack” of the
car to B because the delivery the jack is not mentioned in the contract. (FALSE – DELIVERY OF
DETERMINATE THING MUST INCLUDE ITS ACCESSIONS AND ACCESSORIES)
77. The giving of money order for the full amount of the obligation is payment. (FALSE)
78. Prescription is the extinguishment of an obligation by the passage of time. (TRUE)
79. Payment made in good faith to any person in possession of the credit shall extinguish the debtor's
obligation. (TRUE)
80. Payment means not only the delivery of money but also the performance, in any other manner of
an obligation. (TRUE)
81. A lender can recover the principal of a loan in a usurious contract even if the contract is void as
to interest. (TRUE)
82. A person can assume an obligation in favor of another even without any contractual relationship.
(TRUE)
83. Resolutory condition is one which suspends the effectivity of the obligation until the condition is
fulfilled. (FALSE - SUSPENSIVE)
84. The obligation to give a determinate thing includes that of delivering all the accessions and
accessories, even though they may not have been mentioned in the agreement. (TRUE)
85. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for
future fraud is void. (TRUE)
86. No person shall be responsible for events which could not be foreseen, or which, though foreseen,
were inevitable. (TRUE)
87. All rights acquired in virtue of an obligation are transmissible in the absence of any law or
stipulation to the contrary. (TRUE)
MULTIPLE CHOICE – OBLIGATIONS – SUAREZ 2011
1. Three of the following are requisites of an obligation. Which is the exception?

a. Prestation.
b. Efficient cause.
c. Delivery.
d. Passive subject.
2. As a rule, every person obliged to give something is obliged to take care of it with the:
a. Diligence of a good father of the family.
b. Diligence stipulated.
c. Diligence required by the law.
d. Diligence of a father of a good family.
e. All of the above.
3. On July 1, 2011, A signs a promissory note and binds himself to pay X P100,000 plus 15% per annum
interest on June 30, 2013.
a. Before June 30, 2013, X can demand payment.
b. If on June 30, 2012, A is paying X, X cannot refuse the payment.
c. Because the period is for the benefit of the debtor, A can compel creditor X to accept payment
any date before June 30, 2013.
d. Because the period is for the benefit of the debtor and creditor, X can refuse any tendered
payment before June 30, 2013.
4. "I will give you this book provided that if I like to have it back, you will return the same to me"
a. The obligation is void, because the fulfilment depends upon the will of the debtor.
b. The obligation is void, because the fulfilment depends upon the will of the creditor.
c. The obligation is valid because the condition merely causes the loss of rights already required.
d. Combination of A and B.
5. Statement No. 1: When one of the solidary debtors cannot, because of his insolvency, reimburse his
share to the debtor paying the obligation, such share shall be borne by all his co-debtors, in
proportion to the debt of each.
Statement No. 2: Payment by a solidary debtor shall not entitle him to reimbursement from his co-
debtor if such payment is made after the obligation has prescribed or become illegal.
a. Both are true.
b. Both are false.
No, 1 is true No. 2 is false,
d. No. 1 is false, No. 2 is true.
6. Statement No. 1: In an obligation with a penal clause, interest and damages, aside from the
penalty, may be awarded to the creditor if the debtor is guilty of fraud.
Statement No. 2: In an obligation that is impossible of division, the debt can be enforced only by
proceeding against all the debtors. If one of the debtors should be insolvent, the other shall not be
liable for his share.
a. Both are true.
b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.
7. D obliged himself to give a specific car to C on December 25, 2015, stipulating that D is liable even
if the thing is lost due to fortuitous event, and without the need of a demand. On the due date, the
car got lost due to fortuitous event. Which of the following is correct?
a. Obligation remains to subsist, but converted into monetary consideration
b. C can compel D to deliver another car.
c. C can require another person to deliver a car, expenses chargeable to D.
d. Obligation is totally extinguished.
8. D owes C P10,000 payable on December 25, while C owes D P10,000 payable on December 30. In
here, C can set up compensation (or cum pondere) on December 25, and this is called:
a. Legal.
b. Partial.
c. Judicial or "set-off".
d. Facultative
9. The passage of time extinguishes the obligation:

a. Prescription.
b. Fulfillment of resolutory condition.
c. Arrival of resolutory period.
d. Remission.
e. Rescission.
10. The delivery and transmission of ownership of thing by the debtor to the creditor as an accepted
equivalent of the performance of the obligation is called:
a. Dacion en pago.
b. Payment by cession.
c. Consignation.
d. Remission.
11. Which of the following is not a special mode of payment?

a. Dacion en pago.
c. Tender of payment and consignation.
d. Consignation alone without the need of tender of payment in cases provided for by law.
e. None of the above.
12. D owes C P10,000 payable on December 25. Later, D forced C to sign a promissory note for
P10,000 payable on December 25. If all the other requisites of compensation are present, are both
debts extinguished?
a. Yes, under legal compensation.
b. No, B's consent was obtained by force.
c. Yes, with the approval of the court.
d. Not given.
13. Which of the following is not a conditional obligation?

a. D to give C P1,000 if C passes the examination.
b. D to pay C P1,000 if C has the means.
c. D to give C a horse if C marries X.
d. None of the above.
14. Example 1 – D obliged himself to give C a specific ring upon failure to give C P10,000.
Example 2 – D obliged himself to give C a specific ring. However, if he so desires, D may instead give
C P10,000.
a. Both are valid obligations.
b. Only No. 2 is valid.
c. Only No. 1 is valid.
d. Both obligations are invalid because both depends upon the sole will of D.
15. A and B are solidary debtors of X and Y, solidary creditors to the amount of P4,000. On the due
date, X renounced in favor of A the entire obligation. Which of the following is correct?
a. B shall give A P2,000.
b. Y can still collect from A or B P2,000.
c. Y can collect from X P2,000.
d. Any of the three.
16. In novation, which of the following is incorrect?

a. If the new obligation is void, original obligation shall subsist.
b. In expromission, the insolvency of the new debtor shall not revive the action of the creditor against
the original debtor.
c. If the original obligation is subject to a suspensive condition, the new obligation is not subject to
the same condition unless stated.
d. If the condition is resolutory, the new is also resolutory condition, unless otherwise stated.
17. The buyer has the right to the fruits of the thing from:
a. The time the thing is delivered.
b. The time the obligation to deliver the thing arises.
c. The time the sale is perfected.
d. The time the fruits are delivered.
18. Contracts entered into during lucid-interval:
a. Voidable.
b. Unenforceable.
c. Void.
19. An absolutely simulated or fictitious contract is:

a. Voidable.
b. Void.
c. Unenforceable.
20. The delay on the part of the creditor to accept the performance of an obligation:
a. Dolo incidente.
b. Mora accipiendi.
c. Dolo causante.
d. Mora solvendi.
21. The meeting in one person of the qualities of creditor and debtor with respect to the same
obligation is called:
a. Compensation.
b. Merger.
c. Remission.
d. Novation.
22. The extinguishment of obligations when two persons, in their own right, are debtors and creditors
of each other is called:
a. Compensation
b. Merger.
c. Remission.
d. Novation.
23. When the period is "on or before a date" the debtor has the benefit of the period. This benefit is
lost, and the obligation becomes demandable when
a. The debtors attempted to abscond.
b. After contracting the obligation, the creditor suspects the debtor to becoming insolvent.
c. The guarantee given by the debtor is not acceptable to the creditor.
d. Demand by the debtor could be useless.
24. A was badly in need of money. He offered to sell his parcel of land to B for P100,000.00. B agreed
and paid A the P100,000.00 and A signed a receipt. When B wanted to register the sale, he needed
a Deed of Absolute Sale. What can B do?
a. B may sue A to return the P100,000.00 under the legal maxim "No one shall enrich himself at the
expense of another"
b. B may possess and utilize A's land as a buyer in good faith.
c. B may compel A to execute the Deed of Absolute Sale because the contract is valid.
d. B cannot get back the P100,000.00 because the contract is not enforceable.
25. Three of the following are requisites of cession in payment. Which is the exception?
a. One debtor and one creditor.
b. Complete or partial insolvency.
c. More than one debt.
d. Abandonment of all debtor's property not exempt from execution.
26. A promissory note signed by D and dated March 15, 2012 is worded as follows:" promise to pay C
the sum of Fifty Thousand Pesos (P50,000) provided that if she should fail in the October 2012 CPA
Examination, she shall return to me said amount". The above note gives rise to an obligation with
a. Suspensive condition.
b. Casual condition.
c. Resolutory condition.
27. B and C promise to deliver a particular car valued at P100,000 to M on or before September 15,
2012. On September 15, 2012, M demanded delivery from B and C. B was willing to deliver but C
refused to deliver. In the case at bar,
a. An action for specific performance will lie against both B and C.
b. Both B and C shall be liable for P50,000 each with damages
c. B shall be liable for P50,000 without damages and C shall be liable for P50,000 and damages.
28. An obligation wherein various things are due, but the payment of all is required in order to
extinguish the obligation is called:
a. Simple obligation.
b. Alternative obligation.
c. Conjoint obligation.
d. Facultative obligation.
29. An obligation where only one prestation has been agreed upon is called:
30. An obligation where only one prestation has been agreed upon but the debtor may render
another substitution is called:
31. A, B and C executed a promissory note worded as follows: "We promise to pay X, Y and Z the sum
of P90,000".
a. A is obliged to pay to X, Y and Z P90,000.
b. A is obliged to pay X P30,000.
c. A is obliged to pay X P60,000.
32. If in the situation given in No. 31, there is a diamond ring pledged by the debtors, subsequently
returned by the creditors:
a. The total principal obligation is extinguished.
b. Only P30,000 of the obligation is extinguished.
c. Only P60,000 of the obligation is extinguished.
d. Principal obligation is not extinguished at all.
33. A is indebted to B for P20,000. X is the guarantor of A. B is also indebted to A for P8,000 How much
will X be liable as guarantor if B sues A, and A cannot pay?
a. P12,000.
b. P20,000.
c.P8,000.
d. X has no liability
34. In three of the following cases, compensation shall not be proper. Which is the exception?
a. Commodatum.
b. Gratuitous support.
c. Civil liability arising out of criminal offenses.
d. Bank deposit.
35. Which of the following is an obligation with a period for the benefit of the debtor and the creditor?
a. Payable when "you like".
b. Payable when debtor's means permit him to do so.
c. Payable on or before December 25, 2012.
d. Any of the above.
36. D obliged himself to give C 100 cavans of rice on December 25, 2012. On said date, D failed to
make delivery, despite repeated demands by C. What is the remedy?
a. C can compel D to delivery 100 cavans of rice plus damages.
b. Chas no remedy under the law.
c. C may ask a third person to deliver 100 canvans of rice to him, the value recoverable from D plus
damages.
d. D can rescind the contract because the object is indeterminate.
37. A and B are solidary debtors of W, X, Y and X, joint creditors to the amount of P2,000. How much
can W collect from debtor A?
a. W could recover P2,000 from A. W, in turn, has to give P500 each to X, Y and Z,
b. W could recover P1,000 from A. W, in turn, has to give st P250 each to X, Y and Z,
c. W could recover P500 only from A.
d. W could recover P250 only from A.
38. A obliges himself to pay X P100,000 in 30 days plus a penalty of P20,000 if A fails to pay the
obligation in due time. A failed to pay the obligation in 30 days. What can X demand from A?
a. The principal of P100,000 plus P20,000 penalty.
b. The principal of P100,000 plus P20,000 penalty, plus legal interest.
c. The principal of P100,000 plus legal interest.
d. The principal of P100,000 plus P20,000 penalty, plus legal interest, plus damages.
39. The debtor loses the benefit of the period, and his obligation becomes demandable when:
a. Demand by the creditor would be useless.
b. The guarantees as promised and delivered by the debtor
are not acceptable to the creditor.
c. After contracting the obligation, the creditor suspects that the debtor is becoming insolvent.
d. The debtor attempts to abscond.
40. D obliged to give C, either object No. 1 valued at P15,000; or object No. 2 valued at P10,000; or
object No. 3 valued at P5,000. All the objects were lost due to D's fault in the order stated.
a. D's obligation is extinguished.
b. D's obligation is to pay the value of object No. 1 plus damages.
c. C's right is to demand the value of any of the objects plus damages.
d. None of the above
41. In question No. 40, if object No. 1 is lost due to fortuitous event No. 2 is lost due to debtor's fault; No.
3 is subsisting,
a. The right of C is to demand the value of object No. 2 plus damages.
b. C has no right because he did not communicate what object the debtor will deliver.
c. The obligation of D is to deliver object No. 3.
d. D's obligation is totally extinguished.
42. A wrong committed independent of contract and without criminal intent is:
a. Culpa contractual.
b. Culpa aquiliana.
c. Delict.
d. Quasi-contract.
43. Proof of pecuniary loss is not necessary for the award of:
a. Moral damages.
b. Nominal damages.
c. Temperate damages.
d. Exemplary damages.
44. Proof of pecuniary loss is not necessary for the award of:
a. Liquidated damages.
b. Exemplary damages.
c. Actual damages.
d. Temperate damages.
45. In the execution of obligation, liability for malice or bad faith:

a. Extends to natural consequences even if they exceed the debtor's expectations.
b. Extends only to results intended but excluding exemplary damages.
c. Is demandable in all obligations but may be renounced in advance.
d. Extends not only to results intended but also to their foreseen consequences.
46. Extinguishes the obligation upon the happening of the condition:

a. Resolutory
b. Suspensive.
c. Pure.
47. Extinguishing of debt may be made by creditor either verbally or in writing:

a. Partial payment.
b. Implied remission.
c. Express remission.
48. In contracts and quasi-contracts, the liability of the debtor who acted in good faith:
a. Extends to all natural and probable consequences of the breach of the obligation, and which the
parties have foreseen or could have reasonably foreseen at the time the obligation was constituted.
b. Extends only to results intended but excluding exemplary damages.
c. Extends to all damages which may be reasonably attributed to the non-performance of the
obligation.
d. Extends to all damages which may be renounced in advance.
49. In delicts and quasi-delicts, the defendant shall be liable for

a. Damages which are the natural and probable consequences of the act or omission complained of
whether or not such damages have been foreseen or could have reasonably been foreseen by the
offender.
b. Not only for results intended but also to their foreseen consequences.
c. Damages which may be renounced in advance.
d. Damages intended but excluding exemplary damages.
50. The creditor is entitled to recover damages and interest in addition to the penalty stipulated:
a. When the parties so agreed.
b When the debtor refuses to pay the penalty.
c. When the debtor is guilty of fraud in the fulfillment of the
obligation.
d. All of the above.
51. Which of the following is not a ground for the extinguishment of an obligation?
a. Remission.
b. Merger.
c. Compensation.
d. Death of either debtor or creditor.
52. The indemnity or compensation in money which the law gives to the injured party for the breach
of a contract or a duty is called:
a. Damages.
b. Damage.
c. Injury.
53. The wrongful act or tort which causes loss or harm to another is called:
a. Damages.
b. Damage.
c. Injury.
54. The loss or harm suffered by one person on his property is

called:
a. Damages.
b. Damage.
c. Injury.
55. When the debtor binds himself to pay when his means permit him to do so, the obligation is:
a. Pure.
b. Conditional
c. With a period.
d. Simple.
56. Every obligation whose performance does not depend upon a future or uncertain event, or upon
a past event unknown to the parties, is demandable at once. This refers to:
a. Divisible and Indivisible obligations.
b. Joint and Solidary obligations.
c. Obligations with a period.
d. Pure obligation.
57. This mode of extinguishment of obligations shall take place when two persons, in their own rights,
are creditors and debtors of each other.
a. Compensation.
b. Condonation or Remission of Debt.
c. Confusion or Merger of Rights.
d. Novation.
58. When there is a return of what was not lawfully required, there is:
a. Solutio indebiti.
b. Negotiorum gestio.
c. Cession en pago.
59. Consignation alone shall give rise to the extinguishment of an obligation, EXCEPT:
a. When the creditor is absent or unknown or does not appear at the place of payment.
b. When he is incapacitated to receive the payment at the time it is due.
c. When two or more persons claim the same right to collect.
d. When the title of the obligation has been lost.
60. Obligations may be modified by:

a. Changing their object or principal conditions
b. Substituting the person of the debtor.
c. Subrogating a third person in the rights of the creditor.
61. The following are causes vitiating consent, EXCEPT:

a. Violence.
b. Intimidation.
c. Mistake.
d. Fraud.
62. Remission is:

a. Essentially gratuitous.
b. Naturally gratuitous.
c. Absolutely gratuitous.
63. Statement No. 1: The debtor of a thing cannot compel the creditor to receive a different one,
although the latter may be of the same value or more valuable than that which is due.
Statement No. 2: In dation in payment, ownership of the thing delivered is transferred to convert the
property into cash and out of the proceeds to extinguish the obligation partially.
a. Both are true.
b. Both are false.
No. 1 is true; No. 2 is false.
64. Effect of the loss of the thing in facultative obligations. Which is incorrect?
a. Before substitution: if the principal thing is lost due to fortuitous event, there is no more obligation.
b. Before substitution: if the substitute thing is lost due to debtor's fault, there is no more obligation.
c. After substitution, if the principal thing is lost, the debtor is no longer liable even if it was lost due to
his fault.
65. On October 4, 2012, A is indebted to B for P50,000 for a 20-day period. A proposed to B that X will
pay A's debt, and that A will be free from all liabilities. B and X agree to the proposal. On October 25,
2012, when B tries to collect from X, he finds that X is insolvent. At the time of delegation, X was
already insolvent, but this was not known to A. The insolvency is not of public knowledge. So, B sues A
on the ground that it was A who made the proposal and that A really guaranteed X's solvency.
Decide.
a. A is liable because he is presumed to have guaranteed X's solvency.
b. A is not liable, because A does not know the insolvency of X at the time of delegation and neither
was the insolvency of public knowledge.
c. A is liable because he did not exercise due diligence in determining the insolvency of X.
d. A is liable because X agreed to the proposal to make himself solidarily liable for the obligation.
66. D1 and D2 are joint debtors of C1, C2, C3, and C4, solidary creditors to the amount of P1,000. How
much can C3 collect from D1?
a. 500.
b. 1,000
c.250.
d. 125.
67. D1 and D2 are solidary debtors of C1, C2, C3, and C4, joint creditors to the amount of P1,000. How
much can C3 recover from D1?
a. 500.
b. 1.000.
c. 250.
d. 125.
68. Contract with a false cause is:

a. Voidable.
b. Void.
c. Unenforceable.
69. A thing is considered lost when it:

a. Perishes.
b. Goes out of commerce.
c. Stolen or robbed.
70. The debtor who cedes or assigns his property to his creditor in payment of his debt shall be
released from his obligation.
a. To the extent of the net proceeds of the thing leased.
b. To the extent allowed by the creditor.
c. Only to the extent of the net proceeds of the thing assigned.
d. Totally extinguished under dation in payment.
71. Assignment or abandonment of all the properties of the debtor for the benefit of his creditor in
order that the latter may sell the same and apply the proceeds thereof to the satisfaction of his a
credits
a. Remission.
b. Expromission.
c. Payment by cession.
72. Obligation which is susceptible of partial performance based on the purpose of the obligation:
a. Solidary.
b. Divisible.
c. Joint.
73. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-
debtors
a. If such payment was made before the obligation is due.
b. If such payment was made after the obligation has prescribed or become illegal.
c. If such payment was made in compliance with the demand made to him by all the creditors.
d. If such payment was made after the obligation has become due and demandable and notice of
payment was made only to him.
74. Statement No. 1: When the fulfillment of the suspensive or resolutory condition depends upon the
sole will of the debtor, the conditional obligation shall be void.
Statement No. 2: If the original obligation is subject to a suspensive or resolutory condition and the
contract is novated, the new obligation shall be under the same conditions unless otherwise
stipulated.
a. Both are true.
b. Both are false.
75. Acceptance of commercial documents is equivalent to payment when

a. The check has been cashed.
b. The check became valueless due to the creditor's fault,
c. Creditor is in estoppel.
76. A is obliged to give B his only car on September 1, 2012. On the said date, A did not deliver. On
September 2, 2012, an earthquake completely destroyed the car. Is A still liable?
a. No. Considering that no demand to deliver was made by A and the specific thing was lost due to
fortuitous event, the obligation is extinguished.
b. No. The obligation is extinguished, even if the debtor is already in default because the debtor can
plead impossibility of performance.
c. Yes. A is already in legal delay, thus the obligation to deliver the lost specific thing is converted into
monetary claim for damages.
d. Yes. The creditor can instead demand for a substitute of equivalent value from the debtor.
77. On June 1, 2013, S sold to B the former's horse for P10,000. S promised to deliver on June 25, 2013,
while B did not promise when to pay.
a. B can demand delivery from S any time after June 1, upon payment of the price of the sale.
b. S cannot demand payment until he delivers the horse.
c. Obligation of B to pay is subject to the condition that S will deliver the horse.
d. S can demand from B payment anytime from June 1, because B's obligation is not subject to any
condition.
78. Example No. 1: D owes C P10,000 due on December 25. C owes D P6,000 due on December 25.
D's obligation is guaranteed by G. On the due date, D is insolvent. G is liable to C for P10,000, he (G)
cannot set up compensation because he is not a principal debtor.
Example No. 2: D owes C P10,000 payable on December 25. Later, D through intimidation, was able
to make C sign a promissory note stating that C is indebted to D for the same amount. In here, D
cannot be required to pay C P10,000 because he (D) can set up compensation against C.
a. Both examples are true.
b. Both the false.
c. Only No. 1is true; No. 2 is false.
d. Only No. 1 is false; No. 2 is true.
79. A sold to B the former's horse for P5,000. No date is fixed by the parties for the performance of
their respective obligations. The obligation of A is:
a. To deliver the horse immediately as there is a perfected contract.
b. To deliver the horse upon the payment of B of P5,000.
c. To deliver the horse within a reasonable time of two months from the contract date.
d. To rescind the contract as there is no time fixed for the delivery and payment.
80. The act of abandoning or transferring all the debtor's property to his creditors so that the creditors
may sell them, and out of its net proceeds, to recover their claims is called:
a. Dacion en pago.
c. Tender of payment and consignation.
d. Remission.
81. The substitution or change of an obligation by a subsequent one which extinguishes or modifies
the first, either by changing the object or principal conditions, or by substituting the person of the
debtor, rights subrogating a third person in the rights of the creditor is called:
a. Commodatum.
b. Compensation.
c. Merger.
d. Novation.
82. X obliged himself to give to Y his brand-new Rolex watch if the latter cannot make a circle that is
at the same time a square.
a. The obligation is unenforceable because the condition is immoral.
b. The condition is void because of the positive impossible condition,
c. The obligation is valid because the impossible condition is negative.
d. The obligation is void, not enforceable.
83. Which of the following is an obligation with a period for the benefit of the debtor?
a. An obligation payable little by little.
b. An obligation payable when the debtor's means permit him to do so.
c. An obligation payable within 2 years on demand.
d. Obligation "payable soonest.
e. An obligation payable on or before December 25, 2012.
84. In tender and consignation: If after consignation is made, the creditor allows the debtor to
withdraw the thing deposited in court, which of the following statements is incorrect?
a. Co-debtors, guarantors, and sureties are released from the obligation unless they consented.
b. The obligation remains to subsist.
c. The obligation is extinguished.
85. A-1 and A-2 are solidary debtors of B-1, B-2 and B-3, joint creditors in the amount of P90,000. How
much can B-3 collect from A-2?
a. B-3 could collect P30,000 from A-2.
b. B-3 could collect P90,000 from A-2and give P30,000, each to B-1 and B-2.
c. B-3 could collect P45,000 from A-2 and give P13,000, each to B-1 and B-2.
d. B-3 could collect P15,000 from A-2 and P13,000 from A-1.
86. In three of the following enumerations, the proper remedy is reformation of the instrument. Which
is the exception?
a. if mistake, fraud, inequitable conduct or accident has prevented the meeting of the minds of the
contracting parties.
b. If the true intention of the contracting parties is not expressed in the instrument purporting to
embody the agreement by reason of mistake, fraud, inequitable conduct or accident.
c. If the mutual mistake of the parties causes the failure of the instrument to disclose their real
agreement.
d. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the
instrument does not show their true intention.
87. Statement No. 1: The giving of a negotiable check in payment of debt, accepted by the creditor,
is equivalent to payment.
Statement No. 2: In case extra-ordinary inflation should supervene, the basis of payment is the value
of the obligation at the time the obligation was constituted.
a. Both are true.
b. Both are false.
88. Statement No. 1: In solutio indebiti, the contract of the parties is the basis for damages in case of
non-performance.
Statement No. 2: "Dolo", as a ground for awarding damages, is the deliberate intention to cause
damage or injury to another person.
a. Both are true.
b. Both are false.
c. No, 1 is true; No. 2 is false.
d. No, 1 is false; No. 2 is true.
89. ln which of these cases is advanced payment recoverable by the debtor?

a. If the payment is only of interest credited for the proper period.
b. If the debtor believed that the obligation was already due and demandable.
c. If the debtor was unaware of the period.
d. If the obligation is reciprocal and both parties advanced payment.
90. A judicial relation known as Negotiorum Gestio takes place.

a. When a person voluntarily takes charge of another's abandoned business or property without the
owner's consent.
b. When something is received and there is no right to demand it and it was delivered through
mistake.
C. When a person is appointed by a court to take the property or business of another.
91. A owes B P2,000 demandable and due on September 10, 2012. B, on the other hand, owes A
P2,000 demandable and due on or before September 30, 2012. If B claims compensation on
September 10, 2012, can A rightfully oppose?
a. No. B, who was giving the benefit of the term, may claim compensation because he could then
choose to pay his debt on September 10,2012 which is actually "on or before September 30, 2012".
b. Yes. A can properly oppose because for compensation to take place, mutual consent of both
parties is necessary.
c. Yes. A can properly oppose and if B still refuses to accept his payment made on September 30,
2012, A can deposit his payment in court.
92. Mr. Debtor owes Mr. Creditor who has two (2) legitimate emancipated children, P50,000 payable
on December 31, 2012.
a. if Mr. Debtor dies before December 31, 2012, Mr. Creditor cannot collect from the heirs of Mr.
Debtor.
b. if Mr. Debtor dies before December 31, 2012, Mr. Creditor can collect from the heirs of Mr. Debtor.
c. If Mr. Creditor dies, his two (2) legitimate emancipated children cannot recover from Mr. Debtor his
obligation.
d. If both Mr. Debtor and Mr. Creditor die, the heirs of Mr. Creditor can collect from the heirs of Mr.
Debtor.
93. A and B are solidary debtors of X and Y, solidary creditors to the amount of P4,000. On the due
date, X renounced in favor of A the entire obligation. Which of the following is correct?
a. B shall give A P2,000.
b. Y can still collect from A or B P2,000.
c. Y can collect from X P2,000.
d. Any of the three.
94. A owes B P5,000. C is the guarantor of A. A was able to pay B P3,000, thus leaving P2,000 unpaid.
X, against the will of A and without the knowledge of the partial payment made by A, paid B the sum
of P5,000. How does this payment affect the obligation?
a. The obligation is extinguished. X, however, cannot recover any amount from A since the payment
was made against the will of A. Instead, X can demand payment from C, the guarantor, to the
amount of P5,000.
b. The obligation is extinguished. X, however, can demand only P2,000 from A as this is the amount
which benefited A. If A cannot pay, X, having been subrogated into the rights of B can proceed
against guarantor C.
c. The obligation is extinguished. X can demand P2,.000 from A, but if A cannot pay, X cannot
ordinarily proceed against guarantor C because having paid against the will of A. X is not entitled to
subrogation.
d. X's payment, having been made against the will of A does not extinguish the obligation.
95. The officious manager or gestor is liable for any fortuitous event, EXCEPT:
a. If he has undertaken risky operations which the owner was accustomed to embark upon.
b. If he has preferred his own interest to that of the owner.
c. If he fails to return the property or business after demand by the owner.
d. If he assumed the management in bad faith.
96. A tie or juridical relation, which, by virtue of a payment of what is not due, made through mistake,
is created between the person who paid and the one who received the payment, compelling the
latter, in consequence thereof, to return what he has received.
a. Solutio indebiti.
b. Natural obligation.
c. Civil obligation.
d. Moral obligation.
97. Whenever in an obligation a period is designated, it is presumed

to have been established for the benefit of the:
a. Debtor.
b. Creditor.
c. Both the creditor and the debtor
98. The debtor shall lose every right to make use of the period EXCEPT:
a. When after the obligation has been constituted, he becomes insolvent, unless he gives a guaranty
or security of the deb4
b. When he does not furnish a guaranty or security to the creditor.
c. When the debtor attempts to abscond.
d. When the debtor violates any undertaking in consideration of which the creditor agreed to the
period.
99. An obligation wherein various things are due, but the payment of one of them is sufficient to
extinguish, the obligation is called:
100. Which of the following is not a ground for the payment of damages?
a. Fraud or dolo.
b. Negligence or culpa.
c. Delay or mora.
d. Contravention of the tenor of the agreement.
101. No person shall be responsible for events which could not be foreseen, or which, though
foreseen, were inevitable, EXCEPT:
a. When the debtor is guilty of delay.
b When the nature of the obligation requires the assumption of risk.
c. When the law expressly provides for the debtor's liability even in cases of fortuitous events.
d. When the subject matter of the obligation is a generic thing
102. S sold to B a specific car for P20,000 to be paid as follows: P5,000 upon delivery of the car to B,
and the balance at the rate of P500 every three months thereafter. Subsequently, the car got burned
in the possession of B, without his fault, before payment of the balance. Is B obliged to pay the
balance?
a. No, because the car was lost without his fault, B's obligation is extinguished.
b. No, because this is an installment sale, until the buyer pays the price of the sale, S remains to be
the owner.
c. Yes, because of the principle "the thing perishes with the owner”
d. Yes, but S must give another car because of the principle Genus Numguam Perit" or "Genus never
perishes",
103. D obliged himself to give C a specific car if the latter cannot make a circle that is at the same
time a square.
a. The obligation is impossible, therefore void.
b. The obligation is void because the condition is outside the commerce of man.
c. D cannot be obliged to deliver at all.
d. Answer not given.
104. It refers to a joint obligation:

a. One in which each debtor is liable for the entire obligation, and each creditor is entitled to
demand the whole obligation.
b. One in which either one of the parties is indispensable and the other is not necessary.
c. One in which the obligation of one is a resolutory condition of the obligation of the other, the non-
fulfillment of which entitles the other party to rescind the contract.
d. One in which each of the debtors is liable only for a proportionate part of the debt and each
creditor is entitled only for a proportionate part of the credit.
105. Which of the following statements is true?

a. A condition always refers to the future.
b. The debtor loses the right to the period if he does not give any security to the creditor.
c. The condition not to do an impossible thing does not render the obligation void.
d. In alternative obligations, the right to select which of the prestation shall be delivered belongs to
the creditor, unless expressly given to the debtor.
106. S sold to B a determinate car for P600,000. No date is stipulated for the seller to deliver nor for the
buyer to pay the price.
a. S can require B to pay at any time.
b. S can consider B guilty of default if B does not pay upon demand by S.
c. B is required to pay if S delivers the car and demand for payment is made.
107. An obligation where each of the debtors is liable only for a proportionate part of the debt, and
each creditor is entitled only to a proportionate part of the credit is called:
a. Conjoint obligation.
b. Joint obligation.
c. Solidary obligation.
d. Divisible obligation.
108. An obligation where each debtor is liable for the entire obligation, and each creditor is entitled
to demand payment of the whole obligation is called:
a. Conjoint obligation.
b. Joint obligation.
c. Solidary obligation.
d. Indivisible obligation.
109. A. B. and C executed a promissory note worded as follows: We promise to pay to X, Y and Z the
sum of P90,000. (Sgd.) A, B and C"
a. A is obliged to pay to X, Y and Z P90,000.
b. A is obliged to pay to X P30,000.
c. A is obliged to pay to X P60,000.
d. A is obliged to pay to X P10,000,
110. Statement No. 1: "I will give you a specific car if you will not marry X this year (2012). If by the end
of 2012, both parties are alive, and no marriage has taken place, my obligation is extinguished.
Statement No. 2: "I will give you P10,000 if you cannot make a dead man alive. This is impossible
condition, not demandable.
a. Both are true.
b. Both are false.
c. No. 1 is true: No. 2 is false.
111. Statement No. 1: The receipt of the principal obligation without reservation as to the payment of
interest shall raise a conclusive presumption that the interest is also paid.
Statement No. 2: The receipt of the latter installment of a debt without reservation as to prior
installment, shall not raise a conclusive presumption that the latter installment is also paid.
a. Both are true.
b. Both are false.
c. No. 1is true: No. 2 is false.
112. Statement No. 1: If the obligation does not fix a period, but from its nature and the
circumstances, it can be inferred that a period was intended, the court may fix the duration thereof.
Once it is fixed by the court, the parties cannot change the fixed date for performance.
Statement No. 2: "I will give you P10,000 as soon as possible" This is an obligation with a period for the
benefit of both the debtor and creditor.
a. Both are true.
b. Both are false.
d. No. 1 is false; No. 2 is true
113. A and B are jointly and severally liable to C for P20.000. A is a minor.
a. C can collect P20,000 from B.
b. C can collect P10,000 from A, that is the share of B.
c. C can collect P20,000 because minority is not a defense.
d. C can collect P10,000 from B.
114. The debtor shall lose very right to make use of the period except:
a. When he does not furnish a guaranty or security to the creditor.
b. When after the obligation has been constituted, he becomes insolvent, unless he gives a guaranty
or security for the debts.
c. When the debtor attempts to abscond.
d. When the debtor violates any undertaking in consideration of which the creditor agreed to the
period.
115. Which of the following is not an obligation with a period?

a. "Payable soonest"
b. An obligation payable little by little.
c. Will pay you P10,000 "if I like".
d. Payable "within 2 years from today"
116. If the obligation is payable in foreign currency,

a. The obligation is void.
b. The obligation is valid, but the stipulation is void.
c. The creditor can compel the debtor to pay in foreign currency as per agreement.
d. The stipulation and the obligation are void.
117. Which of the following statements is false?

a. The nullity of the principal carries with it that of the penal clause.
b. Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be
damaged.
c. I will pay you P10,000 soonest is for the benefit of the debtor.
d. Condonation is essentially gratuitous.
118. Which of the following is not a special mode of payment?

a. Dacion en pago.
c. Tender of payment.
119. A owes B P100,000 due on December 12, 2013. A mortgaged his house to B as a guaranty for the
debt. Shortly, however, the mortgaged house was completely destroyed by typhoon "Nitang".
Thereafter, B demanded payment from A on October 28, 2013. Is B's demand valid?
a. No. The obligation is one with a definite period, thus the creditor cannot demand fulfillment of the
obligation as such would be prejudicial to the rights of the debtor.
b. No. The obligation is extinguished because the object of the obligation is loss through a fortuitous
event.
c. Yes. The debt becomes due at once because the guaranty was lost even through a fortuitous
event, unless the debtor can mortgage another property that is equally satisfactory.
d. Yes. The debt becomes due at once because from the tenor of the obligation, the period
established is for the benefit of the creditor solely thereby giving the creditor the right to demand
performance even before the date stipulated.
120. A sold his cow to B for P2,500. No date was stipulated for the delivery of the cow. While still in the
possession of A, the cow gave birth to a calf.
a. A is entitled to the calf because it was born before his obligation on delivery the cow arises.
b. A is entitled to the calf as B has not paid the price.
c. B is entitled to the calf which was born after the perfection of the contract.
d. B, in order to be entitled to the calf, should pay additional cost on the calf to be agreed upon by
both parties.
121. Example No. 1: D promised to give C a specific car valued P100,000 after C has killed X. Later,
after the killing, the contract was novated. Instead of giving C a specific car, he will just give a
specific land to be delivered on February 28, 2013. Meantime, both parties died. In here, the heirs of
C may compel the execution of the second contract, that is, the delivery of the specific land.
Example No. 2: S sold to B a specific residential house situated in Bulacan for P1 million. Unknown to
both parties, one (1) hour before the sale, the property was totally gutted by fire caused by electrical
defect. In here, B can be required to pay the price of the sale, because the object is determinate. S's
obligation to deliver is extinguished, while B's obligation remains to subsist.
b. Only No. 2 is true, while No. 1 is false.
c. Only No. 2 is false, while No. 1 is true.
d. Both examples are false.
e. None of the above
122. "l give you my car one year after your death.” The obligation is
a. Valid, because the event is sure to come.
b. Valid, the obligation is conditional.
c. Valid, but disregard the condition.
d. Void, legally possible.
123. Mr. Cruz executed a first mortgage of his house in favor of Mr. Dizon on May 15, 2015 to guaranty
a mortgage loan of P200,000 due for payment on May 15,2018.On September 16, 2017, the house
was completely destroyed by typhoon. On September 18, 2017, Mr. Dizon demanded payment from
Mr. Cruz of the loan. Is Mr. Dizon's demand for payment valid?
a. No. The obligation is one with a definite period, so the creditors cannot demand payment until the
definite due date arrives.
b. No. The obligation is extinguished because the object of the obligation is lost through a fortuitous
event.
c. Yes. The obligation becomes due at once because the benefit is solely for the creditor. The
creditor can demand payment even before the date stipulated.
d. Yes. The obligation becomes due at once because the guaranty was lost even through a fortuitous
event, unless the debtor can mortgage another property equally satisfactory.
124. S sold to B a specific car for P10,000 and promised to deliver on December 25, 2014. The next
day, after the sale is made, he sold the same car to X and delivered it to X on the same day. If no
delivery is made by S to B on December 26, 2014, which of the following is correct?
a. S is not in default because there was no demand.
b. B can cancel the contract between S and X because the contract of S and B was perfected
ahead of X.
c. S is liable to B for the value of the car plus damages.
d. S is in default, even if there was no demand. Hence, he will answer for damages.
125. Change of persons or objects:

a. Confusion.
b. Novation.
c. Solutio indebiti.
TRUE OR FALSE – CONTRACTS – SUAREZ 2011
1. Obligations and contracts are identical.
2. The object of a contract of sale is its subject matter.
3. If a valid contract is novated to a void contract, both contracts are considered void.
4. Without contract, a person cannot be liable to another.
5. Consummation of a contract is manifested by the offer and acceptance.
6. The statement of a false cause in contracts shall render them void, if it should not be proved that
they were founded upon another cause which is true and lawful.
7. Annulment is available only to persons who are obliged principally or subsidiarily. It is not available
to third persons.
8. If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the
parties, the proper remedy is not reformation of the instrument but annulment of the contract.
9. The action or defense for the declaration of the inexistence of void contract does not prescribe.
10. Voidable contracts cannot be ratified.
11. A contract which is the direct result of a previous illegal contract is also void and inexistent.
12. An offer becomes effective even with the death of either party after acceptance is conveyed.
13. When one party is insane and the other is an unemancipated minor, the contract is
unenforceable.
14. Accidental elements of a contract are those agreed upon by the parties, and cannot exist
without being stipulated.
15. X advertised his lot for sale in a newspaper of general circulation, the advertisement states: "For
sale: 500 sq. m. located at No. 3333 Buendia Avenue, Makati, Metro Manila. Price: P500,000.00 Term
of payment: Cash only. W accepted the offer by sending a letter to X which the latter received. X
can still back out from his offer because his advertisement is merely an invitation to make an offer.
16. Unless it appears otherwise, business advertisements of things for sale are not definite offers, but
mere invitations to make an offer.
17. The contracting parties may establish such stipulation, clauses, terms and conditions as they may
deem convenient, provided they are not contrary to law, morals, good customs, public order, or
public policy.
18. Contacts must bind both contracting parties; their validity or compliance cannot be left to the will
of one of them.
19. Contracts take effect only between the contracting parties.
20. Consensual contracts are not perfected until the delivery of the object of the obligation.
21. Real contracts are perfected by mere consent.
22. An offer becomes ineffective upon the death, civil interdiction, insanity or insolvency of either
party before acceptance is conveyed.
23. When the offerer has allowed the offeree a certain period to accept, the offer may be withdrawn
at any time before acceptance, except when the option is founded upon a consideration, as
something paid or promised,
24. Acceptance made by letter or telegram does not bind the offerer except from the time it came
to his knowledge. The contract, in such a case, is presumed to have been entered into in the place
where the offer was made.
25. When the offerer has allowed the offeree a certain period to accept, the offer may be withdrawn
at any time before acceptance by communicating such withdrawal, except when the option is
found upon a consideration as something paid or promised.
26. Mutual promise to marry if orally entered into is unenforceable.
27. The action for annulment on the ground of fraud shall be brought within four (4) years from the
time of the perfection of contract.
28. Misrepresentation made in good faith is not fraudulent but may constitute error.
29. In order that fraud may make a contract voidable, it should be serious and should not have been
employed by both contracting parties. Incidental fraud only obliges the person employing it to pay
damages.
30. If one party was mistaken and the other acted fraudulently or in such a way that the instrument
does not show their true intention, the former may ask for the annulment of the instrument.
31. The interpretation of obscure words or stipulations in a contract shall not favor the party who
caused the obscurity.
32. Advertisements for bidders are simply invitations to make proposals, and the advertiser is not
bound to accept the highest or lowest bidder, unless the contrary appears.
33. Contracts entered into during a lucid interval are valid. Contracts agreed to in a state of
drunkenness or during a hypnotic spell are binding.
34. In order that mistake may invalidate consent, it should refer to the substance of the thing which is
the object of the contract, or to those conditions which have principally moved one or both parties
to enter into the contract.
35. A threat to enforce one's claim through competent authority, if the claim is just or legal, does not
vitiate consent.
36. Violence or intimidation shall not annul the obligation, if it was employed by a third person who
did not take part in the contract.
37. Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by
confidential relations, constitutes fraud.
38. A mere expression of an opinion does not signify fraud, unless made by an expert and the other
party has relied on the former’s special knowledge.
39. Contracts take effect only between the parties, their assigns and heirs, except in cases where the
rights and obligations arising from the contract are not transmissible by their nature, or by stipulation
or by provision of law. The heir is not liable beyond the value of the property he received from the
decedent.
40. If one or both debts are voidable, the same may be compensated provided they are not yet
avoided.
41. An agreement by its term that it be performed within a year from the making thereof is
enforceable even if entered into orally.
42. An offer made through an agent is perfected from the time acceptance is communicated to the
principal.
43. If the cause is not stated in the contract, it is presumed that it is unlawful.
44. When the real agreement of the parties stated in a contract is void, the parties can ask for
reformation of the instrument.
45. By provision of the law on contracts, where the amount involved in the contract exceeds P500.00,
it must appear in writing or in public instrument. A contracted a loan of P5,000.00 from B which is not
reduced in public instrument or writing. B cannot recover the loan because the contract is not valid.
46. In the case of an illegal contract where there is a criminal offense the parties cannot be
prosecuted if they are both in pari-delicto.
47. Persons who are capable cannot allege the incapacity of those with whom they contracted.
48. The action for rescission is subsidiary; it cannot be instituted except when there is no other legal
means to obtain reparation for damages suffered.
49. Void contracts cannot be ratified. Neither can the right to set up the defense of illegality be
waived.
50. Delivery of the subject matter is necessary to the perfection of the contract of sales.
51. Contracts entered into during a lucid interval are voidable.
52. There is intimidation when in order to wrest consent, serious or irresistible force is employed.
53. Misrepresentation made in good faith is not fraudulent but may constitute error.
54. Cause is the essential or more proximate purpose which the parties have in view of entering into
the contract.
55. Contracts shall be obligatory, in whatever form they may have been entered into, provided all
the essential requisites for their validity are present.
56. When, there having been a meeting of the minds of the parties to a contract, their true intention
is not expressed by reason of mistake, fraud, inequitable conduct or accident, one of the parties may
ask for the reformation of the instrument.
57. Qualified acceptance is considered counter-offer.
58. Consent is the manifestation of the meeting of the offer and the acceptance upon the thing and
the cause of the contract.
59. Acceptance made by letter or telegram does not bind the offerer except from the time it came
to his knowledge.
60. Contracts agreed to in a state of drunkenness or during a hypnotic spell are valid.
61. Dolo causante shall make a contract voidable.
62. Dolo incidente only obliges the person employing it to pay damages.
MULTIPLE CHOICE – CONTRACTS – SUAREZ 2011
1 These persons are bound by contracts:

a. Contracting Parties.
b. Assigns or Assign.
c. Heirs.
D. All of them.
2. Who is liable for the loss of the subject matter by fortuitous event?
a. Creditor.
b. Debtor.
c. Both creditor and debtor.
d. None of them.
3. Contract that is made for a valuable consideration is:

a. Onerous.
b. Gratuitous.
c. Onerous and gratuitous.
d. None of the them.
4. A intimidated B to marry A's daughter. After a year, B would like to file action for annulment but
could not do so because A was around to intimidate him. The marriage contract is:
a. Rescissible.
b. Voidable.
c. Void.
d. Unenforceable.
5. The following, except one, are the characteristics of void or inexistent contract. Which is the
exception?
a. The defense of illegality of the contract is available to third persons whose interests are not directly
affected.
b They are not subject to ratification.
c. The right to raise defense of illegality cannot be waived.
d. The action or defense for declaration of their nullity or inexistence of the contract does not
prescribe.
6. Example 1: G, guardian of W, sold W's house valued at P50,000 for P37,500 or a lesion by one-fourth
of the value.
Example 2: S sold his house valued at P50,000 for only P10,000 because S did not know the true value
of the house.
a. Both contracts are rescissible.
b. Only No. 1 is rescissible.
c. No. 2 is voidable because there is an error or mistake.
d. Both contracts are valid and enforceable.
7. When there is concurrence of offer and acceptance, there is:

a. Payment.
b. Revocation.
c. Consent.
8. Essential requisites of a contract:

a. Consent.
b. Cause.
c. Subject.
d. All of them.
9. A contract where both parties are incapable of giving consent is

a. Void.
b. Voidable.
c. Unenforceable.
d. Rescissible.
10. The stage of "conception" of a contract is:

a. When the contract is fully executed.
b When the parties come to an agreement.
c. When negotiations are in progress.
d. When there is a meeting of the parties' minds.
11. In order that fraud may make a contract voidable,

a. It may be incidental but should have been employed by both parties.
b. It should be serious, and the parties must be in pari delicto.
c. It should be serious and should not have been employed by both contracting parties.
d. It may be incidental but both parties should not be in pari delicto.
12. Simulation of Contract – Absolute or relative, Relative when:

a. Parties are not bound at all.
b. The contract is void.
c. The parties conceal their true agreement.
13. Mr. Esguerra, a former government employee, suffered from severe paranoia and was confined
in the mental hospital in 2001. After his release, he was placed under the guardianship of his wife to
enable him to get his retirement pay. In 2004 he became a mining prospector and sold the mining
claims. In 2007, he sued to annul the sale claiming that he was mentally incapacitated at the time of
sale. The sale in question was:
a. Illegal.
b. Void.
c. Voidable.
d. Valid.
14. Which of the following contracts is enforceable even if not executed in writing?
a. Lease of personal property for 2 years.
b. An agreement for the sale of immovables.
c. Lease of immovables for a period longer than one year.
d. A representation as to the credit of a third person.
15, A contract where one of the parties is incapable of giving consent is:
a. Rescissible.
b. Voidable.
c. Unenforceable.
d. Void.
16. In three of the following defective contracts, ratification cleanses the defects. Which is the
exception?
a. Both parties are incapable of giving consent.
b. Sale of immovable property or interest orally entered into.
c. Sale of a piece of land thru an agent, the authority is oral.
d. Contracts entered into by a person who has been given no authority.
17. In a contract, as written, D promises to pay C P10,000 on September 15, 2012. The consideration
received by D is not stated in the contract.
a. The contract is valid because the cause is always presumed to exist.
b. The contract is valid so long as it is in writing.
c. The contract is valid because cause is not essential to a contract.
d. The contract is void because the cause is not stated.
18. S entered into a contract with B by threatening B that if B does not agree to make the contract, S
will publish defamatory matter concerning B's wife.
a. The contract is valid because the defamatory matter to be published does not relate to B, the
contracting party.
b. The contract is voidable because such publication when carried out whether true or not will cause
a serious harm to B and his wife.
c. The contract is unenforceable, but B is entitled to damages the moment the publication i is made.
d. Contract is void.
19. Example No. 1: D owes C P10,000 due on December 25. C owes D P6,000 due on December 25.
D's obligation is guaranteed by G. On the due date if D is insolvent G is liable to C for P10,000, G
cannot set up compensation because he is not a principal debtor.
Example No. 2: D owes C P10,000 payable on December 25. Later, D, through intimidation, was able
to make C sign a promissory note stating that C is indebted to D for the same amount. In here, D
cannot be required to pay C P10,000 because he (D) can set up compensation against C.
b. Both are false.
c. Only No. 1 is true; No. 2 is false.
d. Only No. 2 is true; No. 1 is false.
20. Valid until annulled unless there has been a ratification:

a. Rescissible contract
b. Inexistent contract.
c. Voidable contract.
21. Contracts that cannot be sued upon unless ratified:

a. Voidable.
b. Unenforceable.
c. Rescissible.
22. Which of the following contract is voidable?

a. Those whose object is outside the commerce of men.
b. Those which are absolutely fictitious.
c. Those where one of the parties is incapacitated.
d. Those which contemplate an impossible service.
23. The duty not to recover what has voluntarily been paid, although payment was no longer
required:
a. Natural obligation.
b. Moral obligation.
d. None of the above
24. Which of the following contracts is voidable?

a. Those where both parties are incapable of giving consent to a contract.
b. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the
claims due them.
c. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.
d. Those whose object is outside the commerce of men.
25. Which of the following contracts is rescissible?

a. Those where one of the parties is incapable of giving consent to a contract.
b. Those where both parties are incapable of giving consent to a contract.
c. Those which are entered into by guardians whenever the wards whom they represent suffer a
lesion of more than 1/4 of the value of the object of the contract.
d. Those which are absolutely simulated or fictitious.
26. Rescission of contract can take place in this case:

a. When the things which are the object of the contract are legally in the possession of third persons
who acted in good faith
b. When he who demands rescission can return whatever he may be obliged to restore.
c. When the party seeking resolution can perform only as to part and rescind as to remainder.
d. When the seller cannot return the installments paid to him by the buyer.
27. L entered into a contact of lease with X. T, the clerk of L, typed the document. Due to Ts
negligence, the document made was that of sales instead of lease.
a. The remedy is annulment.
b. Parties may go to court for interpretation.
c. Parties may enforce their right because it is enforceable.
28. S owns an oil painting. Being in need of money, S sold the painting to B for P1,000. After the sale, S
discovered that the painting was valuable and worth P5,000.
a. S may rescind the contract on ground of lesion or inadequacy of cause.
b. S may annul the contract on ground of fraud.
c. S may annul the contract on ground of error.
d. B is entitled to the benefit of the contract because it is valid and binding.
29. G was appointed guardian of S, the latter being 16 years old. S sold his parcel of land in writing to
B valued at P100,000 for P75,000, suffering lesion by 1/4 of the value. What is the status of the contract?
a. Rescissible.
b. Unenforceable.
c. Enforceable,
d. Voidable.
30. A appoints B to sell his land.

Example 1: If the authority of B is oral and B sells the land in writing, the sale is valid.
Example 2: If the authority of B is in writing and B sells the land orally, the sale is valid. Which of the
following is correct?
a. First example is false, but second example is true.
b. Both examples are true.
c. Both examples are false.
d. First example is true but the second example is false.
31. Three of the following contracts are void. Which is the exception?
a. Sale of animal suffering from contagious disease.
b. Contract where the cause is immoral.
c. Relatively simulated contract.
d. Will pay you P10,000 "if like"
32. D forced C to lend him P10,000. The promissory note is in writing.

a. The contract is rescissible because the contract is fraudulent.
b. The contract is void.
c. C cannot demand payment from D because the contract is unenforceable.
d. Contract remains to be valid.
33. The stipulation in a contract to the effect that the debtor should remain as a servant in the house
and in the service of her creditor so long as she had not paid her debt is void because it is
a. Contrary to good custom.
b. Contrary to public policy.
c. Contrary to law and morality.
34. X, after the death of his father, sold his inheritance though its amount has not yet been
determined to B, for a consideration of P50,000.
a. The contract is valid only if the inheritance values at least equal or more than P50,000.
b. The contract is rescissible.
c. The contract is valid even though nothing remains of her inheritance to be turned over to B.
d. Contract is void, future inheritance cannot be the object of sale.
35. One of the stipulations contained in the contract between M Company and its employees is that
the company shall pay a bonus to employees of the company who shall continue its employment for
at least 2 consecutive years, unless he quits or is discharged before the expiration of the period of 2
years. X, an employee of the company, was discharged without just cause one week before the
completion of the two-year period.
a. X is not entitled to the bonus because his discharge was in accordance with the contract.
b. X is not entitled to the bonus, because the employer's right to terminate is superior than the right of
the employee to be employed.
c. X is entitled to the bonus whether the discharge is with or without cause.
d. X is entitled to the bonus because the debtor company has voluntarily prevented the happening of
the condition.
36. Which of the following is not a requisite for the validity of a contract?
a. Consent.
b. Object.
c. Cause or consideration.
d. Delivery of the thing.
37. Before acceptance is conveyed, an offer becomes ineffective upon

a. Death
b. Civil interdiction.
c. Insanity.
d. Insolvency of either party.
38. Example 1: S sold to B in a private instrument his land. Later, B wanted to have the sale registered,
but registration requires a public instrument. In here, B may compel S to execute the needed public
instrument.
Example 2: S sold to B orally his specific land. After B paid S the price of the sale, he wanted to
register the land in his name, but he needed a public instrument of sale. In here, B may compel S to
execute the needed public instrument.
a. Both examples are false.
b. Only No. 1 is true.
c. Only No. 2 is true.
d. Both examples are true.
39. X alleged that Y promised to give X one hectare of land. This is in consideration of X's meritorious
service to Y. Y pleads in defense that since the promise was not in writing, it is unenforceable under
the Statute of Frauds. Decide.
a. The promise is unenforceable because it is not in writing.
b. Statute of Frauds is applied because X has rendered services already.
c. The Statute of Frauds is inapplicable here, because the promise to give the land is not a sale of real
property.
d. The Statute of Frauds can apply to partially executed contract.
40. An incidental element of a contract:

a. Implied warranty in sale.
b. Payment of interest in a loan.
c. Delivery of the object in contract of pledge.
41. Statute of Frauds is applicable to:

a. Partially executed contract.
b. Oral contract of loan when the amount involved is less than P500.
c. Contract not to be performed within a year from the making thereof.
42. By provision of law, which of the following contracts is not required to appear in a public
document?
a. Acts and contracts which have for their object the creation, transmission, modification or
extinguishment of real rights over immovable property.
b. The cession, repudiation or renunciation of hereditary rights.
c. The power to administer property.
d. Sale of immovable property.
43. Which of the following instruments is not subject to reformation?
a. Simple donations inter vivos wherein no condition is imposed.
b. Wills.
c. When the real agreement is void.
44. Which is the most defective contract?

a. Rescissible contract.
b. Voidable contract.
c. Unenforceable contract.
d. Void contract.
45. Which of the following may not be made the object of a contract?
a. All things which are not outside the commerce of men.
b. All rights which are transmissible.
c. All services which are not contrary to law.
d. Impossible things or services.
46. An obligation which cannot be enforced by court action, but which is binding on the party who
makes it in conscience and according to natural justice is called:
a. Civil obligation.
b. Natural obligation.
c. Pure obligation.
d. Simple obligation.
47. D is indebted to C in the sum of P10,000. For the purpose of avoiding the claims of C, D donated
all his properties worth the same amount to X.
a. The contract is absolutely simulated.
b. The contract is rescissible.
c. The contract is merely voidable.
d. The contract is void.
48. In three of the following, the transaction is void. Which is the exception?
a. Oral contract of partnership the capital is P3,000 or more.
b. Contracts in writing contemplating impossible services.
c. Authority of the agent orally made in sale of immovable property.
d. Oral contract of partnership whenever immovable property is contributed.
49. This kind of defective contract refers to that contract which is validly agreed upon because all
the essential elements exist, but courts can nullify it when there is damage or prejudice to one of the
parties or to a third person. Its enforcement would cause injustice by reason of some external facts.
a. Voidable Contract.
b. Void or Inexistent Contract.
c. Rescissible Contract.
d. Unenforceable Contract.
50. S and B orally agreed that S would sell and B would buy S's radio for P400, two years from the date
of the agreement. At the end of the two-year period, S refused to deliver the radio although B was
willing to pay.
a. B can compel S to deliver because B is willing to pay the price.
b. The contract falls under the Statute of Frauds, therefore unenforceable.
c. No Statute of Frauds because the price is less than P500.
d. The object is movable, oral contract is enforceable.
51. A sold his land to B. Although the sale was made orally, B still paid A the agreed price. Later, B
wanted to have the sale registered but he needed a public instrument. What can B do?
a. B may compel A to execute the public instrument because the contract is valid.
b. B cannot compel A to return the price because the contract is not enforceable.
c. B may only sue A to return the price because no one may enrich himself at the expense of another.
d. B may occupy and use A's land as a buyer in good faith.
52. Contract which has no effect at all and cannot be ratified is a/an:
a. Unenforceable contract.
b. Void contract.
c. Voidable.
d. All of them.
53. If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the
parties to contract, the proper remedy is:
a. Sue for specific performance of the contract.
b. Ratify the contract.
c. Annulment of the contract.
d. Reformation of the contract.
54. S, a minor, owns a specific property valued at P50,000. B capacitated, by means of fraud
induced S to sell his property to him (B) for P10,000 which S did so. The contract is in writing.
a. The contract is binding from the start.
b. The contract remains unenforceable because if falls under the Statute of Frauds.
c. The contract is rescissible because the ward suffered lesion by more than one-fourth of the value.
d. The contract is void.
55. In order that a stipulation in favor of a third person in a contract would be valid and binding upon
the parties thereto, three of the requisites are mentioned in the following enumeration. Which among
them is not a requisite?
a. There must be a stipulation in favor of a third person.
b. The contracting parties must have clearly and deliberately conferred a favor upon that third
person.
c. The third person communicated his acceptance to the obligor before its revocation.
d. That there must be an existing agency between either of the contracting parties and the third
person.
56. D is indebted to C for P10,000. For the purpose of defrauding C, D sold his only parcel of land to X
valued at P10,000. X had no knowledge of the intention of D.
a. The contract between D and X is binding.
b. The contract is. voidable because D is in bad faith.
c. The right of C is to rescind the contract because the transaction is fraudulent.
d. The contract between D and X is rescissible.
57. D owes C P500. However, C's right has already prescribed. Notwithstanding the knowledge of this
fact, D paid the amount. Realizing this mistake, D wants to recover the amount he paid.
a. D can be made to recover on ground of mistake.
b. D can be made to recover on the ground that his obligation is not legally enforceable.
c. D can be made to recover because this will enrich C at the expense of D.
d. D cannot recover.
58. A obtained a loan from B for P1,500 with interest at 14% annum, the payment of which was
secured by guarantor C. After maturity of the loan, D without the knowledge of A paid B, P1,400 and
thereupon B signed a receipt and gave it to D, of this tenor. "Received from D P1,400 in full payment
of A's obligation in may favor". (Sgd.) B.
a. D can recover from A P1,500 because the whole obligation of A to B has been extinguished.
b. D can recover from A P1,500 because the balance of P100 is considered extinguished by partial
remission.
c. D can recover from A P1,400 because that was presumably the extent to which A was benefited.
d. D cannot recover from A because he paid without the knowledge of A.
59. The duty not to recover what has voluntarily been paid although payment was no longer required.
a. Natural obligation.
b. Moral obligation.
60. Contract with a false cause is

a. Voidable.
b. Void.
c. Unenforceable.
61. Which of the following contracts is unenforceable unless ratified?

a. Those entered into in the name of another person by one who has been given no authority or
b. Contracts infringing the Statute of Frauds.
c. Those where both parties are incapable of giving consent to a contract.
62. Which of the following contracts is required to be in writing to be enforceable?

a. An agreement that by its terms is not to be performed within a year from the making thereof.
b. A special promise to answer for the debt, default or miscarriage of another.
c. An agreement made in consideration of marriage, other than a mutual promise to marry.
d. Sales of goods, chattels or things in action at a price not less than P500.00.
63. Example No. 1: D obliged himself to give C P10,000. However, the day before the obligation falls
due, D's apartment was completely gutted by accidental fire. There is no question that the money
was also razed by fire. The obligation of D is totally extinguished because of fortuitous event.
Example No. 2: D obliged himself to pay C P10,000 with 6% interest. On the due date, D tendered
P10,000 with a promise to pay the P600 interest the day after. If C refused to accept, he can be
compelled to do so because the obligation is divisible.
a. Both are true.
b. Both are false.
c. No 1 is true; No. 2 is false.
64. Example No. 1: D for P10,000 mortgaged his land to C. C, instead of a deed of mortgage,
executed a deed of sale and let D sign his name. D's right is to go to court and ask for annulment.
Example No. 2: D obliged himself to give object No. 1 or object No. 2 to C. In here, both objects are
due.
a. Both are true.
b. Both are false.
65. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the
cause which are to constitute the contract. Which of the following constitutes a definite offer?
a. An offer made through an agent.
b. Business advertisement of things for sale.
c. Advertisement for bidders.
66. On July 15, 2012, X entered into a contract with Y. On February 10, 2013, X discovered that fraud
was committed at the time he entered into the contract, a fraud that vitiated his consent. The action
for annulment shall be brought:
a. Within three years from the time of the fraud.
b. Within four years from February 10, 2013.
c. Within four years from the time A entered into the contract.
d. On February 10, 2013.
67. S was forced by X to sign a contract with B for the sale of a specific property for P10,000. C, a
creditor of S, is prejudiced by the contract. What can S do?
a. S may ask for annulment of the contract.
b. S may ask for rescission of the contract.
c. S may ask C to declare the contract avoided.
d. S may ask for reformation of the contract.
68. Example No. 1: The husband, by intimidation, was able to obtain the consent of his wife, with
regard to the sale of a piece of land belonging to the wife for P million. The contract is voidable
because there was intimidation.
Example No. 2: In the above example, the right of the wife is to go to court and file a motion for
annulment within four (4) years from the time intimidation ceased.
a. Both are true.
b. Both are false.
d. No. 1 is false: No. 2 is true.
69. A contract where both parties are incapable of giving consent is

a. Rescissible.
b. Voidable.
c. Unenforceable.
d. Void.
70. Three of the following contracts are void. Which is the exception?
a. Those whose cause, object or purpose is contrary to law, morals, good customs, public order or
public policy.
b. Those which are absolutely simulated or fictitious.
c. Those which cause or object did not exist at the time of the transaction.
d. Those where both parties are incapable of giving consent to a contract.
71. Which of the following contracts is void?

a. Those which object is outside the commerce of men.
b. Those which contemplate an impossible service.
c. Those where the intention of the parties relative to the principal object of the contract cannot be
ascertained.
d. Those expressly prohibited or declared void by law.
e. Al of the above.
72. S makes an offer to B on January 1, 2012. B makes known his acceptance through a letter sent on
January 2 and received by S on January 10. Meantime, on January 5, S becomes insane.
a. The contract is voidable because one party is insane.
b. There is already a meeting of minds, the contract is perfected.
c. The contract is not binding because there is no meeting of minds.
73. In the preceding number, if S is perfectly sane but only an unemancipated minor at the time the
acceptance is communicated to him then,
a. There is no meeting of minds between the parties, unless ratified by the guardian of S.
b. The contract is not binding because one party is incapacitated.
c. The contract is binding between the parties.
74. D owes C P10,000. But the debt soon prescribed. Later X, against the consent of D, pays C P10,000.
a. X can recover from D P10,000 because the latter was enriched at the expense of X.
b. X has no right.
c. X cannot recover from D what he pays C.
d. Both D and C are liable to X.
75. In a contract of sale executed by S and B, it appears S sold his motor vehicle to B and B bought it
for P10,000. It turned out however, S has three motor vehicles. Galant valued at P80,000: Hi-Ace van
valued at P70,000; and a Jeep valued at P60,000, Which of the following is correct?
a. The contract shall be reformed because there was mistake.
b. The parties can ask for interpretation because the word
motor vehicle is ambiguous.
c. The parties can ask for annulment of the contract.
d. There is no contract.
76. Which is the least defective contract?

a. Rescissible contract.
b. Voidable contract.
c. Unenforceable contract.
d. Void contract.
77. Which of the following contracts is not rescissible?

a. Those which are entered into by guardians whenever the wards whom they represent suffer a
lesion of more than 1/4 of the value of the object of the contract.
b. Those executed in representation of an absentee, if the latter suffer a lesion of more than 1/4 of
the value of the object of the contract.
c. Those where one of the parties is incapable of giving consent to a contract
d. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the
claims due them.
e. Those which refer to things under litigation if they have been entered into by the defendant
without the knowledge and approval of the litigants or of competent judicial authority.
78. X Company bought out a competitor, Y with a stipulation that Y should thereafter not engage in
any business in the Philippines without the consent of X Company.
a. The stipulation is not valid because the parties, as a rule, have no absolute freedom to stipulate
terms and conditions in a contract.
b. The stipulation is not valid because this is against public policy.
c. The stipulation is valid, only it will create a monopoly in trade.
d. The stipulation if ratified is valid.
79. Reluctantly and against her good sense and judgment, Rosemarie entered into a contract for the
delivery of 5 tables to Corazon for a price of P15,000. Contract is:
a. Void.
b. Voidable.
c. Unenforceable.
d. Valid.
80. Which of the following contracts is enforceable even if not reduced in writing?
a. Contract executed by one of the parties in a contract.
b. Representation as to the credit of a third person.
c. Lease of immovable for a period longer than one year.
d. Agreement for the sale of immovable property.
81. Which of the following contracts is not valid?

a. Mutual promise to marry entered into orally.
b. Sale of immovable property orally entered into.
c. One of the parties in a contract is incapable of giving consent.

Reviewer Suarez 2011 TFMCQ Obligations and Contracts

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Reviewer Suarez 2011 TFMCQ Obligations and Contracts

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TRUE OR FALSE – OBLIGATIONS – SUAREZ 2011

2. Prestation is the object or subject matter of the obligation. (TRUE)

26. Responsibility arising from negligence or culpa in the performance of an obligation is

51. There is no delay in an obligation not to do something. (TRUE)

69. Condonation or remission is generally gratuitous. (FALSE – ESSENTIALLY GRATUITOUS)

71. Solutio indebiti is a contract. (FALSE – QUASI-CONTRACT)

78. Prescription is the extinguishment of an obligation by the passage of time. (TRUE)

MULTIPLE CHOICE – OBLIGATIONS – SUAREZ 2011

1. Three of the following are requisites of an obligation. Which is the exception?

9. The passage of time extinguishes the obligation:

11. Which of the following is not a special mode of payment?

13. Which of the following is not a conditional obligation?

16. In novation, which of the following is incorrect?

19. An absolutely simulated or fictitious contract is:

45. In the execution of obligation, liability for malice or bad faith:

46. Extinguishes the obligation upon the happening of the condition:

47. Extinguishing of debt may be made by creditor either verbally or in writing:

49. In delicts and quasi-delicts, the defendant shall be liable for

54. The loss or harm suffered by one person on his property is

60. Obligations may be modified by:

61. The following are causes vitiating consent, EXCEPT:

62. Remission is:

68. Contract with a false cause is:

69. A thing is considered lost when it:

75. Acceptance of commercial documents is equivalent to payment when

89. ln which of these cases is advanced payment recoverable by the debtor?

90. A judicial relation known as Negotiorum Gestio takes place.

97. Whenever in an obligation a period is designated, it is presumed

104. It refers to a joint obligation:

105. Which of the following statements is true?

115. Which of the following is not an obligation with a period?

116. If the obligation is payable in foreign currency,

117. Which of the following statements is false?

118. Which of the following is not a special mode of payment?

125. Change of persons or objects:

TRUE OR FALSE – CONTRACTS – SUAREZ 2011

1. Obligations and contracts are identical.

2. The object of a contract of sale is its subject matter.

4. Without contract, a person cannot be liable to another.

5. Consummation of a contract is manifested by the offer and acceptance.

10. Voidable contracts cannot be ratified.

21. Real contracts are perfected by mere consent.

26. Mutual promise to marry if orally entered into is unenforceable.

51. Contracts entered into during a lucid interval are voidable.

57. Qualified acceptance is considered counter-offer.

61. Dolo causante shall make a contract voidable.

MULTIPLE CHOICE – CONTRACTS – SUAREZ 2011

1 These persons are bound by contracts:

3. Contract that is made for a valuable consideration is:

7. When there is concurrence of offer and acceptance, there is:

8. Essential requisites of a contract:

9. A contract where both parties are incapable of giving consent is

10. The stage of "conception" of a contract is:

11. In order that fraud may make a contract voidable,

12. Simulation of Contract – Absolute or relative, Relative when:

20. Valid until annulled unless there has been a ratification:

21. Contracts that cannot be sued upon unless ratified:

22. Which of the following contract is voidable?