CIVIL LAW REVIEW II

FINAL EXAM
May 2021

Name: Celestial, Kenneth Jade Delfin

 
INSTRUCTIONS

1. This questionnaire consists of forty (40) items for Multiple Choice

Questions (MCQ’s) and seven (7) numbers for essay questions and
contained in eight (8) pages. 

2. Place your choice letter for the MCQ’s at the space/table provided at
the last question.

3. Use bold texts in your answer for essay type question. Read each
question very carefully.  Answer legibly, clearly and concisely.  Do
not repeat the question.

4. Your answers should demonstrate your ability to analyze the facts,

apply the pertinent laws and jurisprudence, and arrive at sound and
logical conclusions. Answers must fully explain even if the questions do
not expressly require explanations. A "Yes" or "No"
answer sans explanation or discussion will not be given full credit.

5. Indicate your name in your word document answer manuscript and

submit thru e-mail using your name (last name first) as your filename.

6. The examination will start at 6:00 PM and submit your answer on or

before 9:00 PM.

7. Open your video while answering until you had submitted your answer.

GOOD LUCK!!!

Part I MCQ’s (1 pt. each)

1. Something is received when there is no right to demand

a. Negotiorum gestio
b. Solutio indebiti
c. Quasi delict
d. Obligation ex contracto

2. When a person says "I promise to pay you when I like to," there is no
obligation here because:
a. There is no creditor
b. There is no debtor
c. There is no vinculum juris
d. The obligation is casual

3. Voluntary execution of a wrongful act or willful omission, knowing and

intending the effects which naturally and necessarily arise from such act or
omission is:
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 a. Dolo
b. Culpa
c. Ordinary delay
d. Default

4. The following are characteristics of Passive Solidarity, except:

a. Each debtor may be required to pay the entire obligation but after
payment, he can recover from the co-debtors their respective shares
b The debtor who is required to pay may set up by way of compensation
his own claim against the creditor, in this case, the effect is the same as
that of payment;
c. The interests due by reason of the delay of one of the debtors are
borne only by defaulting debtor
d. All the debtors are liable for the loss of the thing due, even if such loss
is caused by the fault of only one of them, or by fortuitous event after
one of the debtors has incurred in delay;

5. “A” borrowed from “B” the sum of P3,000,000.00. Three days after, ”A” in
a letter authorized the Philippine National Bank to pay his debt to “B” out
of whatever crop loan might be granted to him by said Bank. On the same
day, the bank agreed but the bank paid “B” only P2,000,000.00. On the
date of the maturity, “B” sued the Bank and “A” for the remaining
P1,000,000.00. Is the bank liable to “B”?
a. Yes, the bank is liable for the remaining P1,000,000.00 because it
consented to “A’s” proposal.
b. Yes, the bank is liable for the remaining P1,000,000.00 because there
is novation by expomission.
c. No, the bank is not liable for the remaining P1,000,000.00 because
there is only mere authorization of “A” to pay the obligation.
d. Yes, the bank is liable for the remaining P1,000,000.00 because it
granted a loan to “A”

6. A characteristic of a contract that performance or validity binds both

parties; not left to will of one of parties is:
a. Autonomy of wills
b. Mutuality
c. Obligatory Force
d. Relativity

7. A remedy to conform to real intention of parties due to mistake, fraud,

inequitable conduct, accident
a. Rescission of contract
b. Annulment of contract
c. Interpretation of contract
d. Reformation of contract

8. Both parties are incapable of giving consent to a contract is:

a. Rescissible contract
b. Voidable contract
c. Unenforceable contract
d. Void contract

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9. One of the parties is incapable of giving consent to a contract is:
a. Rescissible contract
b. Voidable contract
c. Unenforceable contract
d. Void contract

10. Mr. X, without the authority of Mr. Y, owner of a car, sold the same car in
the name of Mr. Y to Mr. Z. The contract between Mr. X and Mr. Z is?
a. void because of the absence of consent from the owner, Mr. Y.
b. valid because all of the essential requisites of a contract are present.
c. unenforceable because Mr. X had no authority but he sold the car in
the name of Mr. Y, the owner.
d. rescissible because the contract caused lesion to Mr. Z.

22. Delivery of thing by mere agreement; when SELLER points to the

property without need of actually delivering.
a. Traditio Longa Manu
b. Traditio Brevi Manu
c. Symbolic delivery
d. Constitutum possessarium

24. The right of resale is available to the unpaid seller of goods in case:
a. Where the buyer has been in default in the payment of the price for
unreasonable time.
b. Where the buyer is insolvent.
c. Where the goods have been sold without any stipulation as to credit.
d. Where the goods have been sold on credit, but the term of credit has
expired

26. Mr. S sold a banana plantation to Mr. B for P3 million although its market
value is P20 million. It was agreed that Mr. S shall remain in possession as
lease of the land and shall be responsible for the real estate taxes.
a. The contract gives rise to an action for rescission.
b. The contract gives rise to an action for annulment.
c. The contract is a sale.
d. the contract is presumed to be an equitable mortgage.

28. One whose business is to receive and sell goods and who is entrusted
by the principal with the possession of goods to be sold, and usually selling
in his own name
a. Attorney-in-fact
b. Commission agent
c. Broker
d. Ordinary agent

30. One who is not really a partner in partnership but who may become liable
as such insofar as third persons are concerned
a. Silent partner
b. Ostensible partner
c. Nominal partner
d. Secret partner

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32. A contract by which one of the parties delivers to another money or other
consumable thing, upon the condition that the same amount of the same
kind and quality shall be paid is:
a. Commodatum
b. Mutuum
c. Deposit
d. Antichresis

34. In Commodatum, the Obligations of the bailor is:

a. Pay ordinary expenses for the use and preservation of the thing loaned.
b. Take good care of the thing with the diligence of a good father of a
family.
c. Liable for loss, even if through a fortuitous event when.
d. Demand the return of the thing loaned till after the expiration of the
period stipulated.

36. In action for Quasi Delict, the plaintiff must prove:

a. the fault of defendant.
b. The negligence of defendant
c. The fraud committed of defendant
d. The mistake of defendant

38. The theory whereby both parties are equally negligent; the courts will
leave them as they are; there can be no recovery is:
a. Concurrent negligence
b. Contributory negligence
c. Last clear chance
d. Proximate cause

40.In the claim of damages, loss need not be proved, except:

a. Liquidated damages previously agreed upon; liquidated damages take
the place of actual damages except when additional damages incurred
b. If actual damages are sought
c. Loss is presumed
d. Forfeiture of bonds in favor of the government for the purpose of
promoting public interest or policy

Answer for MCQ’s

1.b 11. 21. 31.

2.d 12. 22.a 32.b
3.a 13. 23. 33.
4.c 14. 24.b 34.a
5.c 15. 25. 35.
6.d 16. 26.d 36.b
7.d 17. 27. 37.
8.b 18. 28.b 38.b
9.b 19. 29. 39.
10.c 20. 30.b 40.d

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Part II
I.
Are the following obligations valid, why, and if they are valid, when is
the obligation demandable in each case?

(a)If the debtor promises to pay as soon as he has the means to pay;
(5 pts)

Answer:

The obligation is valid. Because the obligation is subject to

indefinite period and the debtor binds himself to pay when he
has the means to pay. The obligation is demandable when the
creditor ask the court to fix the period and when the court fix
the period that is the time the obligation is demandable.

(b)If the debtor promises to pay when he likes; (5 pts)

Answer:

The obligation is void. The law state that if the obligation

depends on the sole will of the debtor the obligation is void.

(c) If the debtor promises to pay when he becomes a lawyer; (5 pts)

Answer:

The obligation is valid. The suspensive condition which the

debtor will pay if the latter became a lawyer is uncertain and
has futurity and the performance of the obligation does not
depend of the sole will of the debtor.

(d)If the debtor promises to pay if his son, who is sick with cancer,
does not die within one year. (5 pts)

Answer:

The obligation is valid. The law state that some event will
not happen at a fixed time the obligation shall be valid from the
time the time has elapsed or the event did not happen.

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 II.
a) “S” sold to “B” a parcel of land with an area of 500 sq. meters at
P2,000 per sq. meter. It turns out that the area is only 451 sq. meters. Has
“B” the right to cancel or rescind the sale even if “S” is willing to accept a
proportionate reduction of the price, or the price to P902, 000? (5 pts)

Answer:

No. The law state that in the sale of real estate with the statement
of its area at the rate per sq. meter the vendee has the right to choose
rescind the sale or a proportionate reduction of the price provided that
the lacking area is not one tenth of the stated area. In the problem
above, the area lacking is not one tenth of the stated area. Hence, the
right to rescind the sale is available to B but only a proportionate
reduction of the price.

b) “S” sold to “B” a parcel of land with an area of 500 sq. meters, the
price is fixed at P1,000,000 without a statement of the price per sq. meter. It
turns out that the area is only 451 sq. meters. Has “B” the right to enforce the
contract with the corresponding reduction of the price to P902,000? (5 pts)

Answer:

No. The law state that in the sale of real estate in lump sum the
vendor is bound to deliver all what is stated in the title whether the area
exceeds or not and if he did not able to deliver their will be a
proportionate reduction of the price. If the vendee do not accede the
vendee may rescind the contract. In the problem above, B may only
rescind the contract if he will not accede to the reduction of the price.

III.
“L” corporation (lender) approved the application of “B” for a loan of
money. “B” executed the corresponding mortgage on his land in favor of “L”,
which mortgage was registered in the Registry of property.

Is there a perfected real contract of loan? (5 pts)

Answer:

No. The contract of loan is perfected upon the delivery of the

object of the contract. In the problem above, the money was not
delivered yet to B but only its approval of the application of the loan.
With respect to the registration of the mortgage to the registry of
property is to bind only the parties to the mortgage. Thus, the contract
of loan was not perfected.

IV.
The son of “X” sold a piece of land owned by his father to “Y”, signing
as the owner’s agent. The fact however, is that no power of attorney has
been executed in his favor. Later on, in the presence of witnesses, “X” told
“Y” that he would abide by the sale. Can “Y” sue “X” for the enforcement of
the sale? (5 pts)
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Answer:

No. The law state that the sale of land through an agent the
authority of the latter shall be in writing, otherwise the sale is void. In
the above problem, X authority as an agent to his father was not
reduce in writing. Hence, the sale of the land belonging to X father is
void.

V.
“D” borrowed from “C” P20,000 on Oct. 15, 2016. The contract is not
evidence by any writing. It was, however, verbally agreed that the former
shall pay the obligation after the expiration of 2 years and that the rate of
interest shall be 21% per annum. On Oct. 15, 2018, when the obligation
became due and demandable, “C” demanded from “D” for the payment of
the obligation plus accumulated interests. “D” did not pay. Two years later,
on Oct.15, 2020, “C” filed a complaint against “D” for the recovery of the
amount of P20,000 plus interest at 21% per annum to be computed from
Oct. 15,2016. Will the action prosper? Reasons. (5 pts)

Answer:

Yes with respect to the principal amount. But with respect to the
interest the action will not prosper. The law state that no interest will be
due if it is not expressly stipulated in writing. In the problem above, the
contract between D & C regarding the interest was not expressly
stipulated in writing. Hence, the action to recover the amount of
P20,000 will prosper but the interest of 21% per annum will not be
recover.

VI.
a) “A” deposited P10,000 in his current account with “X” bank.
Subsequently, the Bank was declared insolvent. During the insolvency
proceeding, “A” intervened claiming that the P10,000 deposited does not
constitute a part of the assets of the Bank that will be placed in the
possession of the receiver or assignee because he is still the owner thereof.
Shall “A’s” claim prosper? Reasons. (5 pts)

Answer:

No. Because when A deposited the P10,000 in his account with

the bank the contract that was perfected was a simple loan. The
relationship between A and X is that of creditor and debtor, thus when
A deposited the money to X the ownership was transmitted to the
latter.

b) Suppose that in the above problem, the P10,000 had been placed in
a box, properly sealed, marked and identified as A’s property, and such box
was found in the vaults of the Bank, would that make any difference in your
answer? Reasons. (5 pts)

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Answer:

Yes. Because it becomes a contract of depositum. The law state

that if the thing deposited was sealed, the depositary must returned it
in the same condition. Further, in the contract of depositum the
ownership of the thing was not transmitted to the depositary. Thus, X
is still the owner of the box.

VII.

“D” borrowed P50,000 from “C”. As a security for the payment of the
debt, the former pledged to the latter a diamond ring valued at P200,000. It
was expressly stipulated in the contract that if “D” cannot pay his debt when
it matures, “the debt of P50,000 shall be considered as full payment of the
diamond ring without further action”. “D” was unable to pay when the debt
matured. Can “C” now appropriate the ring? Reasons. (5 pts)

Answer:

No. The law state that the creditor cannot appropriate the things
given by way of pledge any stipulation to the contrary is null and void.
In the problem above, the stipulated contract that if “D” cannot pay his
debt the ring shall be the full payment which constitute an automatic
payment which the law prohibits. Thus, C cannot appropriate the ring.