1.

The bargaining point, that is, when negotiation is in process

a. Consummation
b. Conception
c. Perfection
d. Birth
2. The meeting of minds regarding the object and cause of the contract
a. Conception
b. Preparation
c. Death
d. Birth
3. The point where the parties have performed their respective obligations and the
contract is terminated
a. Preparation
b. Conception
c. Perfection
d. Consummation
4. A contract where the fulfillment is dependent upon the chance, so the values may vary
because of the risk or chance.
a. Commutative
b. Aleatory
c. Remunerative
d. Gratuitous
5. A contract where the cause with respect to each contracting party is the prestation or
the promise of a thing or service by the other is
a. An onerous contract
b. A gratuitous contract
c. An innominate contract
d. A commutative contract
6. A contract where one party receives no valuable consideration and the cause is the
liberality of the benefactor
a. A gratuitous contract
b. A unilateral contract
c. An onerous contract
d. A commutative contract
7. Not a requisite for the validity of a contract
a. Consent
b. Object
c. Cause
 d. Delivery
8. Contract which cannot be ratified
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
9. Contract which has no effect at all
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
10. A contract where both contracting parties are incapable of giving consent
a. Void
b. Rescissible
c. Unenforceable
d. Voidable
11. An absolutely simulated or fictitious contract is
a. Void
b. Voidable
c. Rescissible
d. Unenforceable
12. Not a characteristic of contract
a. Consensuality of contract
b. Simplicity of contract
c. Mutuality of contract
d. Relativity of contract
13. Contracts are generally effective only between the parties, their assigns and their heirs
a. Consensuality of contract
b. Simplicity of contract
c. Mutuality of contract
d. Relativity of contract
14. The contract must bind both contracting parties.
a. Consensuality of contract
b. Simplicity of contract
c. Mutuality of contract
d. Relativity of contract
15. When there is concurrence of offer and acceptance, there is
a. Payment
 b. Consignation
c. Consent
d. Tender of payment
16. They refer to the elements that may be stipulated by the contracting parties
a. Accidental elements
b. Natural elements
c. Moral elements
d. Artificial elements
17. They are the elements that are found in certain contracts and are presumed to exist
unless set aside by the parties
a. Accidental elements
b. Natural elements
c. Moral elements
d. Artificial elements
18. The conception of a contract is when
a. There is meeting of the minds
b. When negotiation are in progress
c. When the contract is executed
d. When the parties come to an agreement
19. A is the guardian of B, a minor. B sold his land in writing to C valued at P1,000,000 for
P700,000. The sale is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
20. A delivered his car to B for the latter’s use for one week without any compensation. The
cause of the contract is
a. The car of A
b. The generosity of A
c. The period of one week
d. The delivery of the car
21. The principle that contracting parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary to law, moral,
public policy and public order, refer to the principle of
a. Liberty of contract
b. Relativity of contract
c. Consensuality of contract
d. Mutuality of contract
22. A delivered his bracelet to B for B’s necklace. No written agreement was signed by the
parties. Which of the following is appropriate description of the contract between A and
B?
a. Onerous and bilateral
b. Onerous and innominate
c. Bilateral and innominate
d. Aleatory and nominate
23. The following instances will render an offer ineffective before acceptance is conveyed.
Which one will not? When one of the parties
a. Is civilly interdicted
b. Becomes insolvent
c. Becomes insane
d. Is placed under a hypnotic spell
24. D forced C to sign a promissory note where C promises to pay D P100, 000. The correct
amount should be P60, 000. Which is correct?
a. The contract is rescissible because there is lesion
b. The contract is unenforceable
c. D cannot demand payment from C because the contract is voidable
d. The contract is valid
25. 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, which one of the following is
correct?
a. The former may ask for reformation
b. The latter may ask reformation
c. Either the former or the latter may ask for reformation
d. The former may ask for annulment
26. A, desiring to buy certain property, hired an expert to ascertain its true value. But the
expert’s opinion turned out to be wrong and A was therefore misled. May A ask for
annulment of the contract?
a. Yes, because the opinion was made by an expert
b. No, a mere expression of an opinion does not signify fraud
c. No, because A’s own expert committed the error
d. Yes, A had relied on the expert’s special knowledge
27. Although validly agreed upon, courts can nullify this contract because of damage to one
of the parties or to third person and its enforcement may cause injustice by reason of
some external facts
a. Rescissible contract
b. Unenforceable contract
 c. Voidable contract
d. Void contract
28. A clause providing that the mortgagee will automatically own the property mortgaged if
the debt is not paid at maturity is
a. Dacion en pago
b. Payment by cession
c. Pactum commissorium
d. Upset price
29. A specific amount below which mortgaged property is not supposed to be sold at the
execution sale
a. Dacion en pago
b. Payment by cession
c. Pactum commissorium
d. Upset price
30. Pactum commissorium and upset price are both
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
31. A wrong committed independent of contract and without criminal intent
a. Culpa aquiliana
b. Delict
c. Quasi-contract
d. Culpa contractual
32. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds
of the parties to a contract, the proper remedy is
a. Ratify the contract
b. Ask for specific performance
c. Annulment of the contract
d. Reformation of the contract
33. The following are some accidental elements of a contract of sale, except
a. Terms of payment
b. Interest rate
c. Place of payment
d. Accession and accessories
34. A stipulation in favor of a third person
a. Stipulation pour autrui
b. Stipulation pour over
 c. Assignment of credit
d. Pactum commissorium
35. The following contracts are not perfected until the delivery of the object of the
obligations, except
a. Pledge
b. Deposit
c. Commodatum
d. Sale
36. Pledge, deposit and commodatum are
a. Consensual contracts
b. Real contracts
c. Solemn contracts
d. Formal contracts
37. A contract to make a deposit, to make a pledge or to make a commodatum is
a. Consensual contracts
b. Real contracts
c. Solemn contracts
d. Formal contracts
38. Acceptance of an offer made by letter or telegram shall bind the offer or from the time
the
a. Offeree accepted the offer
b. Offeree sent his letter or telegram
c. Acceptance came to the knowledge of the offeror
d. Offeror made the offer
39. A contract where consent is given through mistake, violence, intimidation, undue
influence or fraud is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
40. When in order to wrest consent serious or irresistible force is employed, there is
a. Violence
b. Mistake
c. Intimidation
d. Fraud
41. When one of the contracting parties is compelled by a reasonable and well-grounded
fear of an imminent and grave evil upon his person or property, or upon the person or
property of his spouse, descendants or ascendants to give his consent, there is
 a. Violence
b. Mistake
c. Intimidation
d. Undue influence
42. When through insidious words or machinations of one of the contracting parties, the
other is induced to enter into a contract which, without them he would not have
agreed, there is
a. Fraud
b. Mistake
c. Intimidation
d. Undue influence
43. I. Failure to disclose facts, when there is a duty to reveal them constitutes fraud.
II. The usual exaggerations in trade, when the other party had an opportunity to know
the facts, are not in themselves fraudulent.
a. True, true
b. True, false
c. False, true
d. False, false
44. A contract with a cause distinct from the selling price is
a. Lesion
b. Cession
c. Dation
d. Option
45. The inadequacy of cause, like an insufficient price for a thing sold
a. Lesion
b. Cession
c. Dation
d. Option
46. Where reformation is allowed
a. Simple donation inter-vivos wherein no condition is imposed
b. Contract of mortgage fraudulently made as a contract of sale
c. Wills
d. When the real agreement is void
47. The process of intentionally deceiving others by producing the appearance of a contract
that really does not exist
a. Absolute simulation
b. Relative simulation
c. Fraud
 d. Misrepresentation
48. The process of intentionally deceiving others by producing the appearance of a contract
which is different from the true agreement
a. Absolute simulation
b. Relative simulation
c. Fraud
d. Misrepresentation
49. A contract in writing for the sale of movable property between a minor and an insane
person is
a. Void
b. Voidable
c. Rescissible
d. Unenforceable
50. I. Unless the contrary appears, advertisement for bidders are simply invitations to make
proposals, and the advertiser is not bound to accept the lowest or highest bid.
II. Contracts agreed to in a state of drunkenness or during a hypnotic spell are void.
a. True, true
b. True, false
c. False, true
d. False, false
51. This will cure the defect of an unenforceable contract
a. Acknowledgement
b. Confirmation
c. Ratification
d. Referendum
52. The mortgagor will execute an instrument to transfer the ownership over the property
mortgaged to the mortgagee if the debt is not paid at maturity is
a. Void
b. Voidable
c. Valid
d. Unenforceable
53. Sometimes referred to as condition precedent
a. Casual condition
b. Potestative condition
c. Suspensive condition
d. Resolutory condition
54. Also known as condition subsequent
a. Casual condition
 b. Potestative condition
c. Suspensive condition
d. Resolutory condition
55. A owes B P10,000 payable as soon as A has the money to pay B. this is
a. A conditional obligation
b. An obligation with a period
c. A suspensive condition
d. A potestative condition
56. Solidarity on the part of the obligees
a. Active solidarity
b. Passive solidarity
c. Mixed solidarity
d. Casual solidarity
57. A was indebted to B bank. Later C, employee of A, offered to settle the obligation
according to the terms specified by him. The bank accepted the offer. The acceptance by
the bank of the offer of C under the terms specified by him constitutes
a. A compensation
b. A confusion
c. Condition
d. Novation
58. An obligation with a period, except
a. As soon as I have money
b. In partial payments
c. As soon as possible
d. Until the defendant shall have obtained a loan from the bank
59. A, B and C borrowed P24,000 from Y and Z and signed a promissory note dated January
30, 2011, and due within six months. How much can Y collect from A (debtors are
solidary while creditors are joint), on due date
a. P12,000
b. P4,000
c. P8,000
d. P24,000
60. A obliged himself to give B a car if B places among the top ten in the CPA Board Exam.
Subsequently, they agreed that A will give B the car if B merely passes the CPA Board.
This is example of.
a. Mixed novation
b. Real novation
c. Implied novation
 d. Personal novation
61. A law, to aid in human memory, or to prevent injustice due to faulty memory, which
requires that certain contracts must be in writing otherwise unenforceable
a. Pactum commissorium
b. Statute of limitation
c. Law on sales
d. Statute of frauds
62. Characteristics of void contracts, except
a. Defense of illegality cannot be waived
b. Cannot be ratified
c. Action for declaration of inexistence does not prescribe
d. The inexistence can be assailed by third person
63. Which of the following constitutes a definite offer
a. An offer made through an agent
b. Advertisement for bidders
c. Business advertisement of things for sale
d. Newspapers advertisements for employment
64. G was appointed as guardian of M, the latter being 17 years old. Later, without
authority from G, M sold G’s watch in writing to B valued at P100,000 for P70,000.
Suffering lesion more the ¼ of the value, the contract is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
65. Unless ratified, suits will not prosper if the contract is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
66. The obligation is demandable on the date of the obligation and shall continue to be in
force up to the arrival of the day certain:
a. Resolutory period
b. Suspensive period
c. Indefinite period
d. Legal period
67. A, B and C secured a loan from D. The promissory note which evidences the
obligation states: “I promise to pay D or order P10,000 payable on demand” (Sgd) A B
C. The obligation is
 a. Solidary
b. Divisible
c. Indivisible
d. Joint
68. X obliged himself to pay Y the amount of P30,00 30 days after January 31, 2014 plus a
penalty of P3,000 if he fails to pay the obligation on due date. After demand for
payment by Y, X offered to pay on June 30, 2014. Y can demand for X:
a. P30,000 plus P3,000 plus legal interest
b. P30,000 plus legal interest
c. P30,000 plus P3,000
d. P30,000 plus P3,000 plus legal interest plus damages
69. One is not a requisite needed in order that obligation shall be extinguished by loss or
destruction of the thing due:
a. When the thing is lost without the fault of the debtor
b. When the thing lost is generic
c. When the thing is lost before the debtor has incurred in delay
d. When the thing lost is specific
70. In 2008, A, 17 years old sold his ring to B of legal age payable in 3 equal annual
payments. B paid in 2008, 2009 and 2010 as agreed upon. In 2011
a. A can ask for annulment
b. B can ask for annulment
c. The contract is without defect
d. Either A or B can ask for annulment
71. The following contracts are valid except
a. A contract where a party gave his consent while in a state of drunkenness
b. A contract where a party gave his consent because the other threatened to
sue him for an unpaid debt
c. A contract where A gave his consent because B threatened to kill A’s spouse
d. A contract where the wife sells her property to her husband because of
intimidation
72. The following statements pertain to the cause of a contract. Which statement refers
to motive?
a. It is the essential reason for a contract
b. It is always known to the contracting parties
c. Its illegality does not affect the validity of the contract
d. There will be no contract without it
73. A and B executed a contract on January 12, 2010 where A agreed to sell and B agreed
to buy A’s only fighting cock. The agreement provides that the delivery of the cock is
 to be made on June 24, 2010 at which time B would pay the agreed price of P2,000.
One June 9, 2010, A sold the same fighting cock to C. B asks for your advice, assuming
there is no delivery yet of the cock to C.
1st Advice B may sue for damages, on June 9, 2010 without the need of demanding
delivery because it is useless, the object was sold to a third person
acting in good faith.
nd
2 Advice B may sue for damages after the arrival of the stipulated period, that is
June 24, 2010 because the right of B to sue will only accrue on
June 24, 2010
a. Both advice are correct
b. Both advice are wrong
c. First is correct, second is wrong
d. First is wrong, second is correct
74. A offered to sell her watch to B for P1,000. B offered to buy the watch for P800 but it
was rejected by A. when B turned to go away. A called him and said she is now willing
to sell the watch for P800. May B refuse to buy said watch?
a. No, because B’s offer of P800 was accepted by A.
b. No, there is a meeting of the minds between the parties or the subject matter
and the cause of the contract.
c. Yes, because B made a counter offer which was rejected by A.
d. Yes, because the agreement is under the statute of frauds.
75. A offered to sell his house and lot to B for P2,000,000, who was interested in buying
the same. In his letter, A stated that he was giving B a period of one month within
which to raise the amount. One week before the expiration of the one month-period.
A told B that he is no longer willing to sell the property unless the price is increased
to P3,000,000. May B compel A to accept the P2,000,000 first offered?
a. Yes, because this is an obligation with a period and a period is deemed for
the benefit of both parties.
b. Yes, because the period is deemed for the benefit of B as it was A who
voluntarily offered the period to B.
c. No, because the promise to sell had no cause or consideration distinct from
the selling price.
d. No, because the increase in the price is 50% and is deemed unconscionable.
76. A leased his property to B. part of the premises was subleased by B to C. b violated
the conditions of the lease, so A wanted to rescind the lease contract. Which is
correct?
a. A can rescind the lease contract provided he respects the sublease
 b. A cannot rescind the lease contract as the sublease would naturally be
affected
c. A may rescind the lease contract and is not bound to respect the sublease
d. B may object to the cancellation of the contract because he is not a party to
violation
77. An employee embezzled a sum of money from her employer, and in order that she
would not be prosecuted, her husband signed a promissory note to pay the amount
embezzled, with interest to the victim, which is correct?
a. The husband is liable because the note was executed by the husband
voluntarily
b. The recovery shall be limited only to the amount embezzled without any
interest
c. The employer may recover from the husband of the employee and may still
prosecute the employee
d. No recovery can be made on the note because the consideration is illicit
78. A and B agreed on a certain contract, but A fraudulently made a document reciting
another kind of contract. Later both A and B died. Which is correct?
a. Only the son of A may bring an action to reform the instrument
b. Only the son of B may bring an action to reform the instrument
c. Either the son of A or the son of B may bring an action to reform the
instrument
d. Neither the son of A nor the son of B may bring an action to reform the
instrument
79. In a contract of sale of a hardware store (construction materials) it was stipulated
that the seller shall not open or have any interest directly or indirectly in any
hardware store either in his own name or in the name another or have connection
with or be employed in any hardware store for a period of one year or within three
kilometers from Barangay Ginebra, San Miguel, Bulacan. Are these
stipulations/restrictions upon the seller valid?
a. No, the agreement is contrary to public policy as the seller is deprived of a
means of livelihood
b. No, the stipulations are in restraint of trade
c. Yes, the restrictions imposed are only on a limited scale
d. Yes, as long as the agreement is made in writing
80. A insured his residential house for P5,000,000 on January 1, 2013. On June 30, 2013 B
burned the insured property. Which is not correct?
a. A can proceed against the insurer and collect the P5,000,000 policy
b. The insures shall be subrogated to the rights of A after payment to A
 c. After payment the insurer shall have the right to proceed against B
d. A should proceed against B, the guilty party and not against the insurer
81. A bought a house and lot in a subdivision subject to the condition that they shall be
used for residential purposes only. The condition was annotated on the certificate
title. Ten years later, A sold the property to B who converted same into a restaurant.
The owner of the subdivision demanded the closure of the restaurant but B refused
on the ground that the lot became commercial because of its proximity to some
stores and a shopping center in an adjoining subdivision. Furthermore, the lot has
been reclassified into commercial by an ordinance passed by the City Council. Which
is correct?
a. B cannot convert the lot into a commercial lot because of the restriction on
the certificate of title
b. The stipulation between the owner of the subdivision and A is valid and shall
bind B
c. B should first ask for the cancellation of the annotation on his certificate of
title prohibiting the use of the lot for purposes other than residential
d. The stipulation that the lot shall be used exclusively for residential purposes
becomes ineffective because of the conversion of the land into commercial by
ordinance as a valid exercise of the police power of the state
82. A sold to B his cow 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 cow immediately as there is a perfected contract
b. To deliver the cow within the reasonable time from the perfection of the
contract
c. To deliver the cow upon the payment by B of P5,000
d. To rescind the contract as there is no time fixed for the delivery and payment
83. A, a minor, entered into a contract without the consent of her parents. In said
contract A was supposed to pay to B the sum of P10,000. B did not know of A’s
minority and when A voluntarily paid B the money, B accepted the sum. Out of this
amount, B spent P8,000 for his needs. Later, the parents of A learned of the
transaction and brought an action in court to recover the P10,000 paid to B. How
much can the parents recover from B?
a. Nothing
b. P10,000
c. P8,000
d. P2,000
84. A owes B P10,000 due on May 27, 2013. A owes B P8,000 due on May 28, 2013. A
obliged himself to deliver to B a cow valued at P6,000 on May 30, 2013, A paid B
P10,000. If A makes an application of payment,
a. The P10,000 should be applied to the first debt only
b. The P10,000 should be applied to the second debt only
c. The P10,000 may be applied either to the first debt or the second debt
d. The P10,000 may be applied to the first debt, or to the second debt or to the
third debt
85. A sold his land to B. the sale was made orally. B paid the agreed price. B wanted to
have the sale registered but he needs a public instrument. Which is correct?
a. B may sue A for the return of his money as no one shall be unjustly enriched
at the expense of another
b. B cannot demand the return of the purchase price because the sale is
unenforceable
c. B may compel A to execute the public instrument because the sale is valid
d. B may only occupy and use the land as buyer in good faith
86. A is indebted to B for P100,000. For the purpose of defrauding B, A sold his only
parcel of land to X valued at P100,000. X has no knowledge of the intention of A. A as
a result
a. The contract between A and X is binding
b. The contract is voidable because A acted in bad faith
c. The contract between A and X is rescissible
d. The right of B is to rescind the contract because it was intended to defraud
him
87. A lost in gambling and as payment executed a promissory note in favor of winner, B.
Later, B assigned the note to C. may C successfully recover from A?
a. Yes, if C is not aware that it is in payment of a gambling debt
b. No, because B cannot recover, so also cannot the assignee
c. Yes, because B can recover, so also the assignee can
d. No, because promissory notes can only be negotiated but not assigned
88. A shipped his cargo in B’s vessel. B and C entered into a contract for C to unload the
cargo from the ship’s hold. In the lifting operations, A’s cargo was damaged, which is
correct?
a. A may go against C and sue C for damages
b. A may go against either B or C and sue for damages
c. A may go against both B&C and sue for damages
d. A may go against B and sue for damages
89. Not a requisite of stipulation pour autrui
 a. The contracting parties must have clearly and deliberately conferred a favor
upon third person
b. The stipulation must be part of the contract
c. The third person communicated his acceptance to the obligor before it
revocation
d. There must be an agency between either of the parties and the third person
90. One is not a rescissible contract
a. Those undertaken in fraud of creditors when the latter cannot in any other
manner collect the claims due them
b. Those which are entered into by guardians wherever the wards whom they
represent suffer lesion by more than ¼ of the value of the things which are
the object thereof
c. Those agreed upon in representation of absentees, if the latter suffer a lesion
more than ¼ of the value of the object of the contract
d. Those where one of the parties is incapable of giving consent to a contract
91. Which of the following need not be in writing to be unenforceable?
a. An agreement for the sale of goods, chattels, or things in action at a price not
less than P500
b. An agreement for the leasing for a period longer than one year, or for the sale
of real property or of an interest thereon
c. A representation as to the credit of a third person
d. A mutual promise to marry
92. To be enforceable, the following contracts are required to be in writing, except
a. A special promise to answer for the debt, default or miscarriage of another
b. An agreement that by its terms is not to be performed within a year from the
making thereof
c. An agreement made in consideration of marriage other than a mutual
promise to marry
d. A contract of loan
93. Which of the following contracts is voidable?
a. Those were both parties are incapable of giving consent to a contract
b. Those that do not comply with the Statute of Frauds
c. Those entered into in the name of another person by one who has been given
no authority or legal representation or who has acted beyond his power
d. Those where the consent is vitiated by mistake, violence, intimidation, undue
influence or fraud
94. Which of the following is enforceable?
a. Oral sale of immovable property for a price of P400
 b. Oral sale of immovable property for a price of P10,000
c. Oral contract of loan for P1,000
d. Oral agreement made in consideration of marriage
95. A, B and C are jointly liable to D in the amount of P9,000. D assigns the entire credit
to A. in this case
a. The obligation is extinguished because of confusion
b. B and C will not be liable to A
c. A becomes the new creditor and may demand from B and C P4,500 each
d. A’s share in the obligation is extinguished because of confusion
96. One of the following is not correct in joint obligations
a. There are as many debts as there are debtors
b. There are as many credits as there are creditors
c. The debts and/or credits are considered distinct and separate from one
another
d. The insolvency of one of the debtor shall make the other debtors liable
97. If a third person pays for the debtor with the consent of the debtor, he
a. Can recover only in so far as the payment has been beneficial to the debtor
b. Can recover the amount he has paid but he shall not acquire the rights of the
creditor
c. Can recover the amount he has paid or the payment that has benefited the
debtor whichever is lower
d. Can recover the amount he has paid and he shall acquire the rights of the
creditor such as those arising from a mortgage, guaranty or penalty
98. A is indebted to B with C as guarantor. B assigns the credit to D, who in turn assigns
the credit to C. which is correct?
a. The obligation of A is extinguished
b. The assignment to C did not affect the obligations of C as guarantor
c. The assignment by B to D extinguished the guaranty
d. C becomes the new creditor of A
99. A obtained from B a loan for P1,500 with interest at 10% per annum, the payment of
which loan was secured by a guaranty secured by C. After the maturity of the loan, D
a friend of A, went to B and paid the latter, without the knowledge of A, P1,400 for
said loan and thereupon B signed and delivered to D a receipt of this tenor “Received
from D P1,400 in full payment of A’s obligation in my favor. Sgd. B”. Which is
correct?
a. D may recover from A the amount of obligation, that is P1,500, because A was
benefited up to P1500
b. D may recover from A P1,500 plus interest
 c. D may recover from A P1,400 plus interest
d. D may recover from A P1,400 without interest
100. Using the preceding number, in case A has nothing with which to pay. D may
exact from the guarantor.
a. P1,500
b. P1,400
c. P1,400 plus interest
d. Nothing
101. A was supposed to pay B P10,00 on June 30, 2013. Believing that the obligation
was due and demandable already on June 30, 2012, A paid B the P10,000 on said
date. How may A recover from B on December 31, 2012?
a. P10,000 without interest because A voluntarily paid his obligation
b. None, because A voluntarily paid his obligation
c. P5,000 because ½ year has elapsed after A effected payment
d. P10,000 plus interest because when A effected payment he was unaware of
the period
102. If one debt is P12,000 and the other is P6,000 and the debtor without making
any application of payment gives P3,000, how should said payment be applied,
presuming that both debts are of the same nature and burden?
a. The payment will be applied to the P12,000 debt
b. The payment will be applied to the P6,000 debt
c. The payment will be applied equally
d. The payment will be applied proportionately
103. Rescission of contract can take place
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 the party seeking rescission can perform only as to part and rescind as
to another
c. When the seller cannot return the installment paid to him by the buyer
d. When he who demands rescission can return whatever he may be obliged to
restore
104. In order that fraud may make a contract voidable:
a. It may be incidental but both parties should not be in pari delicto
b. It may be serious and the parties must be in pari delicto
c. It may be incidental but should have been employed by both parties
d. It should be serious and should have not have been employed by both
contracting parties
105. A, the father of B, was indebted to C in the amount of P1M. A died without
paying the indebtedness. B inherited from A properties worth only P400,000. B paid C
the amount of P1M one month after A’s death. Can B ask for the refund of what he
paid to C?
a. Yes, but only up to P600,000
b. Yes, but only up to P400,000
c. No, the obligation of the father is also the obligation of the heirs under the
principle of relativity of contracts
d. No, because the heir voluntarily paid the debt of the decedent
106. One of the stipulations contained in the contracts between a company and its
employees is that the company shall pay a bonus to any employee of the company
who shall continue their employment for at least two consecutive years unless he
quits or is discharged before the expiration of the period of two years. X, an
employee of the company was discharged one week before the completion of the
two year period
(1) If X is discharged with just cause, he is nevertheless entitled to the bonus because
when the company voluntarily impedes the performance of the condition, it will be
deemed performed.
(2) I f X is discharged without just cause, he is entitled to the bonus because when the
debtor voluntarily prevents the performance of the condition, it is deemed fulfilled
a. True, true
b. True, false
c. False, true
d. False, false