1.

Which among the following may not be an underlying philosophy in

obligations arising from Contracts?
a) Reciprocity
b) Freedom to contract
c) Good faith
d) Law between the parties

2. If the obligor is unable to comply with his obligation by reason of

fortuitous event the obligation is extinguished, except when
a) He is guilty of negligence
b) When the obligations to give is indeterminate
c) When the obligation is determinate
d) When the obligation proceeds from a criminal offense

3. Lessor A leased his apartment unit to Lessee B. In the contract of lease, it

was stipulated therein that for failure of he lessee B to pay his rentals for
two (2) consecutive months, A may validly eject B, without resort to court.
Upon B’s failure to pay 2 monthly rentals he was ejected from the
premises, B now goes to court for Damages for his alleged failure to
exercise his day in court since he was ejected from the premises without a
court hearing. Decide.
a) B’s contention is valid because the contract between vests reciprocal
obligations, hence he must have his right to seek judicial recourse
b) B’s contention is valid because it must be proved that he indeed failed
to pay 2 installments;
c) A’s action is right because the injured party has the right to rescind the
obligation
d) A’s action is correct because A’s non resort to judicial action is
expressed in the contract;
e) B’s contention is correct because in all reciprocal obligations, the right
of the parties to rescind the contract is implied and that judicial decree
is needed.

4. In an obligation whereby the obligor is bound by different prestations,

a) It is the debtor who has the right of choice unless the creditor is given
that right
b) The right of choice to the debtor gives him the freedom to chose
c) The debtor can chose to give a portion or part of each prestation
except those which are indivisible

5. Mode of Extinguishing obligations whereby the right of subrogation may

occur:
a) Novation f) Resolutory
b) Compensation g) Loss of the Thing due
c) Condonation h) Compromise
d) Payment i) Death of one of the parties in personal
obligations
e) Confusion j) Application of Payment
6. The distinction between negligence and fraud is
a) Voluntariness
b) Intention
c) Degree of Damages sustained by the injured party
d) Negligence or culpa is a civil in character while dolo or fraud is criminal
in essence.

7. The principle giving remedies to the creditor for his protection and
enforcement of his right against the debtor such as exhaustion of debtor’s
property in his possession, to be subrogated to all the rights and actions of
the debtor and third to impugn all the acts of the debtor, which were
intended to defraud him is not applicable in:
a) Obligations with suspensive condition
b) Obligations with resolutory condition
c) The case of fruits and interests
d) Rights which are purely personal

8. Rescission of contract can take place in this case

a) When the thing which is the object of the contract is legally in the
possession of a third person who acted in bad faith
b) When he who demands rescission can return whatever he may be
obliged to restore
c) c. When the party seeking resolution can perform only as to part and
as to remainder
d) When the seller cannot return the installments paid to him by the
buyer

9. Which of the following statements is false?

a) Obligations to give definite things and those that are not susceptible
of partial performance shall be deemed divisible.
b) Execution of a certain number of days of work shall be divisible.
c) Accomplishment of work by metrical units are divisible
d) An obligation to pay a certain amount in ten annual installments is
divisible.

10. An instrument may be reformed d

a) Simple donations inter vivos wherein no condition is imposed

b) Wills
c) When the instrument does not express the true intention of the
parties due to mistake
d) When the real agreement is void
11. Three of the following contracts are void. Which one is not?

a) Oral contract of partnership of three partners and capital contribution

is more than P3,000 in cash
b) Written contract contemplating impossible services
c) Oral contract of partnership where real estate is contributed as capital
d) Agent's authority to sell land is given orally.

12. When a third person assumes the payment of the obligation even
without the knowledge and consent of the debtor but with the consent of
the creditor

a) There is novation
b) There is delegation if debtor is released
c) There is subrogation
d) There is expromission if debtor is released

13. Which of the following is not an element of legal compensation?

a) Debts to be compensated are due and demandable
b) There is controversy or adverse claim over any debts to be
compensated
c) here are two or more debts of the same kind
d) There are two or more persons who are creditor or debtors of each
other.

14. Through insidious words or machinations, A was able to induce B to enter

into a contract which without them B would not have agreed to it. There
is:
a) Undue Influence
b) Fraud
c) Mistake
d) Misrepresentation

15. "A sells to B his lot and house in the city if A decides to transfer and live
in the countryside" is an example of:

a) Mixed Condition
b) Potestative Condition
c) Casual Condition
d) Resolutory Condition

16. If the obligation of the debtor is "I will pay you my debt after I have
arrived from abroad," this is

a) Unenforceable
b) With a Period
c) Void
d) Conditional
17. Which of the following is not a rule in the interpretation of contracts?
a) If some stipulation of any contract should admit of several meanings, it
shall be understood as bearing that import which is most adequate to
render the contracts effectual
b) Words which may have different significations shall be understood in
that which is most in keeping with the nature and object to the
contract.

c) In order to judge the intention of the contracting parties, their

contemporaneous and subsequent acts shall be principally considered

d) Although the cause is not stated in the contract, it is presumed that it

exists and is lawful, unless the debtor proves the contrary.

18. Contracts are effective and binding only between the parties, their
assigns and their heirs. Three of the following enumerations are
exceptions as provided by law. Which does not belong to the exception?

a) Where there is a stipulation in favor of third party

b) Where one of the parties to the contract dies and thereafter a suit is
filed on the basis of the contract

c) Where the obligation arising from contract are not transmissible by

their nature

d) Where the obligation arising from contract are not transmissible by

stipulation or by provision of law.

19. A and B who are both unemancipated minors entered into a contract.
The contract entered into by and between them is:

a) Rescissible

b) Unenforceable

c) Voidable

d) d. Void

20. Which of the following contracts cannot be ratified?

a) Those whose cause or object did not exist at the time of the
transaction.

b) Unauthorized contracts

c) Those where both parties are incapable of giving consent

d) Those that fail to comply with the Statute of Frauds

21. Consignation is a mode of payment which extinguishes an obligation.
Which of the following is not a requisite for consignation?

a. Actual consignation with the proper judicial authorities

b. Prior notice has not been made

c. Existence of a valid debt

d. There must be prior notice of consignation to persons interested in

the fulfillment of the obligation.

22. X enters into a contract with Y whereby X sold his land orally to Y. The
land has been delivered and the money has been paid. Is the oral sale
of the land valid?

a) The contract is not valid because it is not in writing as required by

the Statute of Frauds.

b) The contract is not valid because the contract is not made in a

public instrument.

c) The contract is unenforceable.

d) The contract is valid because the contract is already perfected and

executed.

23. To defraud his creditors, A contracted with B by selling a land to B. B now

seeks to register the land with the Register of Deeds. X, a creditor of A
seeks to prevent registration on the ground that the contracts is
rescindable. Despite X’s objection, may the land be registered on the
contract in B’s name?

a) The land cannot be registered based on the contract which is

rescindable.

b) The land cannot be registered because the contract is in fraud of the

creditor

c) The land can be registered based on the contract because the

contract is not yet rescinded.

d) The land can be registered because the contract is valid and can be
attached collaterally in a land registration proceeding.

24. On July 15, 2016, X entered into a contract with Y. On February 10,
2017, 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, 2017

c) Within four years from the time A entered into the contract

d) On February 10, 2017

25. On September 1, 2017, A entered into a contract with B whereby A sells

to B 5,000 sacks of sugar to be delivered on the 15 th and to be fully paid
in full on the 30th. There was no agreement for rescission based on non-
paymnet non-payment. A did not deliver on the 15th but on the 30th he
was willing and offering to deliver but B did not make payment on the
said date and so A did not like it and refused to make delivery. Decide.

a) A cannot rescind the contract for non-payment of the price.

b) A cannot refuse to deliver the goods

c) B is not entitled to recover damages

d) A can rescind the contract for non-payment of the price.