CPA Review School of the Philippines

CONTRACTS DO Dela Cruz

1. 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

2. A owes B P10,000 due on May 27, 2015. A owes B P8,000 due on May 28, 2015. A obliged himself to
deliver to B a cow valued at P6,000 on May 30, 2015. On May 31, 2015, 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 to the second debt
d. The P10,000 may be applied to the first debt, or to the second debt or to the third debt

3. 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

4. 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 P 100,000. X has no knowledge of the intention of 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.

5. 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.

6. 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 c. A may go against both B & C and sue for damages
b.A may go against either B or C and sue for damages d. A may go against B and sue for damages

Questions 7 - 9 pertain to stages in the life of a contract

7. The bargaining point, that is, when negotiation is in progress

a. Consummation b. Conception c. Perfection d. Birth

8. The meeting of minds regarding the object and cause of the contract
a. Conception b. Preparation c. Death d. Birth

9. The point where the parties have performed their respective obligations and the contract is terminated
a. Preparation b. Conception c. Perfection d. Consummation
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10. 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

11. 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 c. An innominate contract
b. A gratuitous contract d. An aleatory contract

12. A contract where one party receives no valuable consideration and the cause is the liberality of the
benefactor is
a. A gratuitous contract c. An onerous contract
b. A unilateral contract d. A commutative contract

13. Not a requisite for the validity of a contract

a. Consent b. Object c. Cause d. Delivery

14. Contract which can not be ratified

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

15. Contract which has no effect at all

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

16. A contract where both contracting parties are incapable of giving consent is
a. Void b. Rescissible c. Unenforceable d. Voidable

17. An absolutely simulated or fictitious contract is

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

18. Not a characteristic of contract

a. Consensuality of contract c. Mutuality of contract
b. Simplicity of contract d. Relativity of contract

19. Contracts are generally effective only between the parties, their assigns and their heirs
a. Consensuality of contract c. Mutuality of contract
b. Simplicity of contract d. Relativity of contract

20. The contract must bind both contracting parties.

a. Consensuality of contract c. Mutuality of contract
b. Simplicity of contract d. Relativity of contract

21. When there is concurrence of offer and acceptance, there is

a. Payment b. Consignation c. Consent d. Tender of payment

22. A is the guardian of B, a minor. B sold his land in writing to C valued at P1M for P.7M. The sale is
a. Rescissible b. Voidable c. Unenforceable d. Void

23. 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 c. The period of one week
b. The generosity of A d. The delivery of the car

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24. 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 c. Bilateral and innominate
b. Onerous and innominate d. Aleatory and nominate

25. 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 c. Becomes insane
b. Becomes insolvent d. Is placed under a hypnotic spell

26. 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

27. 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 for reformation
c. Either the former or the latter may ask for reformation
d. The former may ask for annulment

28. 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

29. Although validly agreed upon, courts can nullify this contract because of damage to one of the parties or
to a third person and its enforcement may cause injustice by reason of some external facts
a. Rescissible contracts c. Unenforceable contract
b. Voidable contract d. Void contract

30. 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

31. A specific amount below which the 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

32. Pactum commissorium and upset price are both

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

33. A wrong committed independent of contract and without criminal intent

a. Culpa aquiliana c. Quasi-contract
b. Delict d. Culpa contractual

34. 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 c. Annulment of the contract
b. Ask for specific performance d. Reformation of the contract
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35. The following are some accidental elements of a contract of sale, except
a. Terms of payment c. Place of payment
b. Interest rate d. Accession and accessories

36. A stipulation in favor of a third person

\

a. Stipulation pour autrui c. Assignment of credit

b. Stipulation pour over d.Pactum commissorium

37. The following contracts are not perfected until the delivery of the object of the obligations, except
a. Pledge b. Deposit c. Commodatum d. Sale

38. Pledge, deposit and commodatum are

a. Consensual contracts b. Real contracts c. Solemn contracts d. Formal contracts

39. 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

40. Acceptance of an offer made by letter or telegram shall bind the offeror from the time the
a. Offeree accepted the offer c. Acceptance came to the knowledge of the offeror
b. Offeree sent his letter or telegram. d. Offeror made the offer

41. A contract where consent is given through mistake, violence, intimidation, undue influence or fraud is
a. Rescissible b. Voidable c. Unenforceable d. Void

42. When in order to wrest consent, serious or irresistible force is employed, there is
a. Violence b. Mistake c. Intimidation d. Fraud

43. 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, descendents or
ascendants to give his consent, there is
a. Violence b. Mistake c. Intimidation d. Undue influence

44. 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

45. 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

46. A contract with a cause distinct from the selling price is

a. Lesion b. Cession c. Dation d. Option

47. The inadequacy of cause, like an insufficient price for a thing sold
a. Lesion b. Cession c. Dation d. Option

48. Where reformation is allowed

a. Simple donation inter-vivos wherein no condition is imposed c. Wills
b. Contract of mortgage fraudulently made as a contract of sale d. When the real agreement is void

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49. 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

50. 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

51. 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

52. 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

53. This will cure the defect of an unenforceable contract

a. Acknowledgement b. Confirmation c. Ratification d. Referendum

54. 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

55. Sometimes referred to as condition precedent

a. Casual condition b. Potestative condition c. Suspensive condition d. Resolutory condition

56. Also known as condition subsequent

a. Casual condition b. Potestative condition c. Suspensive condition d. Resolutory condition

57. A owes B P10,000 payable as soon as A has the money to pay B. This is
a. A conditional obligation c. A suspensive condition
b. An obligation with a period d. A potestative condition

58. Solidarity on the part of the obliges

a. Active solidarity b. Passive solidarity c. Mixed solidarity d. Casual solidarity

59. 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
term specified by him constitutes
a. A compensation b. A confusion c. Condition d. Novation

60. An obligation with a period, except

a. As soon as I have money c. As soon as possible
b. In partial payments d. Until the defendant shall have obtained a loan from the bank

61. 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

62. 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

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63. 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 comissorium b. Statute of limitation c. Law on sales d. Statute of frauds

64. Characteristic of void contracts, except

a. Defense of illegality cannot be waived c. Action for declaration of inexistence does not prescribe
b. Cannot be ratified d. The inexistence can be assailed by third person

65. Which of the following constitutes a definite offer

a. An offer made through an agent c. Business advertisement of things for sale
b. Advertisement for bidders d. Newspapers advertisements for employment

66. 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 by more than ¼ of the
value, the contract is
a. Rescissible b. Voidable c. Unenforceable d. Void

67. Unless ratified, suits will not prosper if the contract is

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

68. 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

69. 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

70. X obliged himself to pay Y the amount of P30,000 30 days after January 31, 2015 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, 2015. Y can demand from X:
a. P30,000 plus P3,000 plus legal interest c. P30,000 plus P3,000.
b. P30,000 plus legal interest d. P30,000 plus P3,000 plus legal interest plus damages.

71. 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

72. In 2012, A, 17 years old sold his ring to B of legal age payable in 3 equal annual payments. B paid in
2012, 2013 and 2014 as agreed upon. In 2015
a. A can ask for annulment c. The contract is without defect
b. B can ask for annulment d. Either A or B can ask for annulment

73. 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 party 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

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74. The following statements pertain to the cause of a contract. Which statement refers to motive?
a. It is the essential reason of 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

75. A and B executed a contract on January 12, 2015 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, 2015 at
which time B would pay the agreed price of P2,000. On June 9, 2015, 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, 2015 without the need of demanding delivery
because it is useless, the object was sold to a third person acting in good faith.
2nd Advice B may sue for damages after the arrival of the stipulated period, that is June 24,
2015 because the right of B to sue will only accrue on June 24, 2015.
a. Both advice are correct c. First is correct, second is wrong
b. Both advice are wrong d. First is wrong, second is correct

76. 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.

77. 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 2,000,000 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

78. 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 the violation

79. 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

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80. 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

81. 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 of 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

82. A insured his residential house for P5,000,000 on January 1, 2015. On June 30, 2015 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 insurer 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

83. 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 of 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

84. 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

85. The following contracts must be in writing, except

a. Donation of personal property where the value is Php 5,000 or more
b. Authority of the agent to sell a piece of land or any interest therein
c. Agreement to pay interest in a contract of loan
d. Contract of antichresis

86. Which of the following stipulations is valid?

a. A stipulation where the mortgagee or pledgee will automatically owned the property mortgaged or
pledged in case the mortgagor or pledgor fails to pay the loan
b. A stipulation forbidding the owner from alienating the immovable mortgaged
c. A stipulation made in consideration of marriage other than mutual promise to marry
d. A stipulation which excludes one or more partners from any share in the profits or loss

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87. They refer to the elements that may be stipulated by the contracting parties
a. Accidental elements c. Moral elements
b. Natural elements d. Artificial elements

88. They are the elements that are found in certain contracts and are presumed to exist unless set aside by the
parties
a. Accidental elements c. Artificial elements
b. Natural elements d. Incidental elements

89. The conception of a contract is when

a. There is meeting of the minds c. When the contract is executed
b. When negotiations are in progress d. When the parties come to an agreement

90. 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 c. Consensuality of contract
b. Relativity of contract d. Mutuality of contract

91. 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

92. 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 of 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

93. Which of the following need not be in writing to be enforceable?

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

94. 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

95. Which of 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 powers
d. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud

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96. 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

97. 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

98. 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

99. 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

100. 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

101. 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

102. 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

103. A was supposed to pay B P10,000 on June 30, 2015. Believing that the obligation was due and
demandable already on June 30, 2014, A paid B the P10,000 on said date. How much may A recover
from B on December 31, 2014?
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

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104. 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 c. The payment will be applied equally
b. The payment will be applied to the P6,000 debt d. The payment will be applied proportionately

105. 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

106. 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.

107. 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.

108. 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) If 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

The End!!

BL – 002 11