Republic of the Philippines

DON HONORIO VENTURA STATE

UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

NAME: Date:
Professor: Section: Sex at Birth: Score:

FINAL EXAMINATION
LAW ON OBLIGATIONS AND CONTRACTS (LAW 1)
1. This element of obligation is also known as the vinculum juris of the obligation:

a. Active Subject c. Efficient Cause

b. Passive Subject d. Prestation

2. Which of the following is a real obligation?

a. An obligation to safekeep real property.

b. An obligation to give a grand piano.
c. An obligation to construct a building.
d. An obligation not to marry for two (2) years.

3. It is defined as a juridical necessity to give, to do, or not to do.

a. Obligations. c. Agreements.
b. Contracts. d. Covenants.

4. Which of the following obligation is compellable by judicial processes?

a. Civil obligation
b. Natural obligation.
c. Moral obligation
d. Extinguished obligation.

5. In this kind of obligation, performance is left to the will of the debtor.

a. Civil Obligation c. Moral Obligation

b. Natural Obligation d. Extinguished Obligation

6. Anna and Benny entered into a written contract of loan on August 1, 2003, where Benny
borrowed P3 million from Ana. With knowledge that the debt has been prescribed, Benny paid
Ana the P3 million plus interest on April 1, 2020. Benny asked for your advice regarding the
recovery of the amount that has been paid. Can Benny recover?

a. Yes, Benny can recover because an implied contract of deposit was constituted.
b. Yes, Benny can recover pursuant to the principle of solutio indebiti.
c. No, Benny can no longer recover because the debt is legally enforceable.
d. No, Benny can no longer because Ana has the right of retention.

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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

7. Which of the following is a negative obligation?

a. An obligation not to sell a horse.

b. An obligation to give a cow.
c. An obligation to construct a house.
d. An obligation to enter into a contract of loan.

8. Which of the following consists of a bilateral obligation?

a. Obligation of parents under the Family Code.

b. Obligation of parties in a contract of sale.
c. Obligation of two co-owners to give a house under their co-ownership.
d. Obligation of a tortfeasor to pay for damages caused in the installments

9. Which of the following is not a source of obligations?

a. Law c. Quasi-Law
b. Contracts d. Quasi-Contracts.

10. Statement 1: Obligation derived from law are not presumed.

Statement 2: Obligations arising from contracts have the force of law between the contracting
parties.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are false.

11. It arises when there is voluntary management of the property or affairs of another without the
knowledge or consent of the latter.

a. Solution Indebiti. c. Constitutum possessorium

b. Caso fortuito. d. Negotiorum Gestio.

12. Tzuyu left her home in Manila to go to a vacation in South Korea. While Tzuyu was in South
Korea, she heard reports that a strong typhoon will be ravaging the Philippines. Tzuyu is
worried that she left her home unattended. Tzuyu contacted her friend, Momo, to check the
conditions of her house. Momo went to Tzuyu’s residence and saw that that Mina, Tzuyu’s
friendly neighbor, is already doing the necessary improvements to protect the house. Tzuyu
contacted Mina and thanked her for the improvements that were introduced, and asked if Mina
can update her of the situation of her home from time to time. What is the juridical relation
between Tzuyu and Mina?
a. The quasi-contract of negotiorum gestio.
b. An implied contract of partnership.
c. A contract of agency.
d. There is no judicial relation between Tzuyu and Mina.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

13. Statement 1: In a quasi-delict, there needs to be a pre-existing contractual relationship

between the obligor and oblige.
Statement 2: Every person criminally is also civilly liable.

a. Only Statement 1 is true. c. Both statements are true.

b. Only Statement 2 is true. d. Both statements are not true.

14. Nayeon obliged herself to give the red Honda car with plate number TWC-222 to Sana. Which
of the following statement is true?

a. Nayeon can substitute another car event against Sana’s will.

b. Nayeon can substitute another car only if Sana agrees.
c. Nayeon cannot substitute another car in any instance.
d. Nayeon will generally be liable to Sana if the car was lost due to fortuitous event.

15. Dahyun is obliged herself to give an accounting book to Jeongyeon. Two days after, Dahyun
bought an accounting book from the nearby bookstore with the intention to deliver the book to
Jeongyeon the next day. However, a thief broke inside Dahyun’s home that night and stole
the accounting book. Is Dahyun’s obligation extinguished?

a. Yes, since the theft is a fortuitous event

b. Yes, since the prestation is a specific thing
c. No, since theft is not a fortuitous event
d. No, since the prestation is a generic thing

16. A debtor, in an obligation to give a specific thing, must take care of the thing with

a. The diligence of a father of a good family.

b. The diligence of a good father of a family.
c. The diligence of a father of a family.
d. The diligence of a good father of a good family.

17. This is defined as everything which is produced by a thing, or which incorporated or attached
thereto, excluding fruits.

a. Accessions. c. Accessories.
b. Accessant. d. Accessibles.

18. In an obligation to give a specific thing:

a. There is an obligation to deliver the fruits from the time of the obligation to deliver arises.
b. There is an obligation to deliver the fruits from the time the specific thing should have
actually been delivered
c. There is an obligation to deliver the fruits only if these pertain to natural fruits.
d. There is an obligation to deliver the fruits to the creditor.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

19. The remedy of substitute performance is available to a creditor in an obligation to give

a. A specific thing c. A specific or generic thing

b. A generic thing d. Neither specific nor generic thing

20. Generally, which of the following is not a part of the duties of the debtor in an obligation to give
a generic thing?

a. To take care of the thing with the diligence of a good father of a family
b. To pay damages in case of breach
c. To deliver a thing of the quality intended by the parties.
d. To deliver its accessions and accessories.

21. If the obligation has been substantially performed in good faith, the obligor may

a. Not recover unless there had been a strict and complete fulfillment.
b. Recover as though there had been a strict and complete fulfillment.
c. Recover as though there had been a strict and complete fulfillment, less damages
suffered by the oblige.
d. Be obligated to undo what has been done.

22. As a general rule, in order to put the debtor in delay, demand must be

a. Judicial c. Either Judicial or extrajudicial

b. Extrajudicial d. Both Judicial and extrajudicial.

23. Mora accipiendi is:

a. Delay on the part of the debtor.

b. Delay on the part of the creditor.
c. Mutual delay on both the debtor and creditor on separate unilateral obligations.
d. Mutual delay on both the debtor and creditor on reciprocal obligations.

24. Lalisa obliged herself to deliver to Jennie, a wedding dress for her wedding day that is
scheduled on May 9,2020. However, on the day itself, Lalisa failed to deliver the wedding
dress and instead delivered the dress two days after on May 11, 2020. Jennie sued Lalisa for
damages for the legal delay in delivering the dress. Lalisa contended that there was no prior
demand to put her in legal delay. Who is correct?

a. Lalisa is correct. There must be a demand before Jennie can be put on delay.
b. Lalisa is correct. The fact that the wedding is scheduled is not a sufficient form of
demand because demand must be judicial in nature.
c. Jennie is correct. Considering that time is the essence, there need not be any demand
to put Lalisa in delay.
d. Jennie is correct. The fact that the wedding is scheduled is a sufficient form of demand
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

25. Any waiver for an action for future fraud is:

a. Valid
b. Valid if agreed upon by both the debtor and the creditor.
c. Voidable for it shows a vitiation of consent on the part of the party waiving
d. Void

26. Any waiver of past fraud is:

a. Unenforceable
b. Valid if agreed upon by both the debtor and the creditor.
c. Voidable for it shows a vitiation of consent on the part of the party waiving
d. Void.

27. Jisoo borrowed P2 million from Rose for the construction of her new home. Jisoo and Rose
agreed that the amount will be payable on December 31, 2021. However due to an economic
crisis brought by a pandemic, Rose asked Jisoo if she can already pay half of the loaned sum.
Jisoo refused, contending that the amount, as agreed upon, is payable on December 31, 2021.
Is Jisoo considered to already be in delay?

a. No, because the demand made is oral.

b. No, because the obligation is not yet demandable.
c. Yes, because demand may be judicial or extrajudicial.
d. Yes, because Rose’s need is of the essence;

28. Dolo causante exists:

a. During the time of perfection of the obligation

b. During the performance of a pre-existing obligation
c. During the restitution of the parties
d. During the consummation of the obligation.

29. This kind of fraud makes an obligation voidable.

a. Dolo incidente
b. Dolo causante
c. Dolo incidente or dolo causante
d. Neither dolo incidente nor dolo causante

30. Statement 1: generally, parties can stipulate a lower degree of diligence than the diligence of
a good father of a family.
Statement 2: Future gross negligence may be waived.
a. Only statement 1 is true.
b. Only statement 2 is true.
c. Both statements are true.
d. Both statements are not true.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

31. Irene obliged herself to pay Seulgi P500,000 if she passes the CPA Licensure Examination
on October 2020. However, on September 2020.,Irene inadvertently deposited P500,000 to
Seulgi’s account. Irene seeks to recover the amount paid. Can Irene recover?

a. Yes, since the condition was not yet filled.

b. No, instead an obligation on the part of Seulgi will arise to return the amounts the
amounts paid if she does not pass the CPA Licensure Examination on October 2020.
c. No, but Seulgi will be entitle to keep the fruits.
d. Yes, since it has already become impossible for Seulgi to fulfill the obligation.

32. Yeri obliged herself to deliver a parcel of land to Wendy on Augut 1,2020, subject to the
suspensive condition that Wendy will release a song. The parcel of land has a fair market
value of P20,000,000 on August 1, 2020. On December 1, 2020, Wendy released a song. On
the same day, the fair market value has risen to P22,000,000. Yeri claims she is entitled to
P2,000,000. Is Yeri correct?

a. No, because the object of the obligation is an indivisible thing.

b. No, since the land improved by its nature or by time, the improvement shall inure to
Wendy.
c. Yes, since the land improved by its nature or by time, the improvement shall inure to
Yeri.
d. Yes, because the object of the obligation is a divisible thing.

33. Statement 1: A suspensive condition shall be deemed fulfilled when the obligor voluntary
prevents its fulfillment.
Statement 2: The condition that some event will happen at a determinate time shall render
the obligation effective from the moment the time indicated has elapsed.
a. Only statement 1 is true c. Both statements are true.
b. Only statement 2 is true d. Both statements are not true.

34. In an obligation between E and F, which of the following is a mixed condition?

a. A condition that F will marry G on or before September 1, 2020.
b. A condition that H will enter law school.
c. A condition that F will buy a car from E.
d. A condition that L will be elected as President of the Philippines and M will be elected
as Vice President.

35. Jimin obliged himself to give Jungkook P10,000,0000 if Jungkook can own the planet Jupiter.
Which of the following statements is true?
a. The suspensive condition is impossible. Therefore, the obligation is void.
b. The suspensive condition is impossible. Therefore, the condition is void but the
obligation remains valid.
c. The suspensive condition is impossible. Therefore, Jimin is liable for damages.
d. The suspensive condition is impossible. Therefore, the obligation becomes
immediately due and demandable without the need of demand.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

36. Due to his kindness, Chen obliged himself to give to Baekyun P100,000 when his friend dies.
His friend has been reported to be terminally ill, and in order to appease Baekyun’s feelings,
Chen decided to oblige himself. Which of the following statements best describe the obligation?

a. The condition is void.

b. It is a valid obligation subject to a suspensive condition.
c. It is a valid obligation subject to a suspensive period.
d. The obligation is void.

37. An obligation wherein the debtor binds himself when his means permit him to do so is:

a. A void obligation, since, it is potestative on the part of one of the parties.

b. A valid obligation that is already due and demandable
c. An obligation subject to a suspensive condition
d. An obligation subject to a suspensive period.

38. In which of the following instances does a debtor lose the benefit of the period?
a. When the debtor becomes insolvent and he gives a guaranty for the debt.
b. When the creditor demands that a security be given to him, but the debtor refuses to
do so.
c. When the debtor violates any undertaking, in consideration of which the creditor
agreed to the period.
d. When the debtors suffers civil interdiction

39. Which of the following statements is true?

a. In an alternative obligation, there are two or more pestations, but only one is due; the
other are considered substitutes.
b. In a facultative obligation, there is only one prestation due, but another may be
rendered as a substitute.
c. In an alternative obligation, the choice belongs to the creditor as a general rule.
d. In a facultative obligation, the choice belongs to the creditor as a general rule.

40. A, B, and C issued a promissory note stating, “We promise to pay D and E P120,000 on
September 20,2020”. On September 30, how much can collect from A?

a. P20,000 c. P60,000
b. P30,000 D. P120,000

41. Sehun obliged himself to deliver a 2015 phone a charger to Kai. However, Sehun instead
delivered the latest 2020 phone but without charger. Kai accepted, Is the obligation
extinguished?
a. No, Kai cannot be compelled to accept a different prestation.
b. No, the subject of the violation is a specific thing.
c. Yes, there was a novation.
d. Yes, Kai’s acceptance constitute estoppel.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

42. Statement 1: If the debt produces interest, payment of the interest shall not be deemed to
have been made until the principal has been covered.
Statement 2: If no place for payment has been stipulated payment must then be made at the
residence of the debtor.
a. Only statement 1 is true, c. Both statements are true.
b. Only statement 2 is true, d. Both statements are not true.

43. Payment to a third person is:

a. Always void.
b. Always valid.
c. Valid only if it has redounded to the benefit of the creditor. This is presumed, and the
burden of providing that he has not benefited from the payment rests with the creditor.
d. Valid only if it has redounded to the benefit of the creditor. This is not presumed, and
the burden of proving that the creditor has benefited from the payment rests within the
debtor.

44. Which of the following is not a requisite for the rules on application of payments to supply?

a. There is plurality of debts.

b. Debts are owned to the same creditor and by the same debtor.
c. All debts must be due.
d. Payment made is sufficient to cover all debts.

45. D owned C P6,000 payable in December 31, 2020, with interest at 4% per annum and P10,000
payable in January 31, 2021, with interest at 6% per annum. D paid P4,000 on February 14,
2021, and he told C that it shall be applied as a reduction to the debt due on December 31,
2020. Can D so?

a. No, the January debt is more onerous since it has a higher interest rate.
b. No, the choice belongs to the creditor.
c. Yes, The December 31 debt was the first to have become due.
d. Yes, the choice belongs to the debtor.

46. Statement 1: E owned P1,000,000. F, through his kindness, later told E that he need not pay
the P1,000,000. Instead, E should just take care of F’s farm for the rest of his life. E agreed.
This extinguishes E’s obligation to pay P1,000,000 by way of condonation.
Statement 2: Condonation need not always be express but may be inferred from the conduct
of the parties.

a. Only Statement 1 is true.

b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

47. A, B, and C solidary bound themselves to pay D P60,000 by way of a negotiable promissory
note. Subsequently, D indorse the note to E, who in turn indorsed the note to C. What is the
effect of the indorsement to C?

a. The obligation is totally extinguished without right of reimbursement on the part of C.

b. The obligation is totally extinguished with right of reimbursement on the part of C.
c. The obligation is partially extinguished as A and B still have to pay D.
d. The obligation is partially extinguished as A and B still have to pay E.

48. L obliged himself to pay M P500,000 subject to as suspensive condition that M will not leave
the Philippines in ten (10) years. Subsequently, L and M novated the obligation, stating that,
instead of P500,000, L will pay M P300,000 and give his car. Does the suspensive condition
still apply?

a. No, In novation, as a general rule, the condition is not carried over the new obligation.
b. No, In novation, the condition is not carried over to the new obligation unless
specifically stipulated.
c. Yes, In Novation, as a general rule, the condition, whether suspensive or resolutory, is
carried over the new obligation.
d. Yes, In Novation, the condition is carried over to the new obligation only if the condition
is suspensive.

49. Which of the following kind of subrogation takes place by agreement the parties?

a. Legal subrogation c. Negotiated subrogation

b. Conventional subrogation d. Correlative subrogation.

50. Can legal subrogation exist without the debtor’s knowledge?

a. No.
b. Yes, when a third person not interested in the obligation pays.
c. Yes, when a third person pays with tacit approval of the debtor.
d. Yes, when a creditor less preferred pays a creditor which is more preferred.

51. Normani entered into a contract with Camila whereby Camila will construct Normani’s house
for a service fee of P2,000,000. Subsequently, Camila changed the terms, and asked Normani
to pay P3,000,000, citing unforeseen challenges in accomplishing the house. Camila
presented two medical certificates citing that two out of her five workers got sick, and she was
forced to hire another personnel and pay higher wages. Is Camila’s action of asking
P3,000,000 form Normani justified.

a. No, it violates the mutuality of contracts.

b. No, because Normani was not informed beforehand.
c. Yes, this is a form of novation of obligation.
d. Yes, this is in consonance with the autonomy of contracts.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

52. Perrie entered into a contract with Leigh-Anne. It was agreed that Perrie will deliver three (3)
chickens per month for 20 years to Leigh-Anne in exchange for Leigh-Anne’s 1,000 square
meter parcel of land. The contract was entered into in writing. Is the contract valid?

a. No, because it is not payable in a price certain in money.

b. No, because the contract is not payable in price certain in money.
c. Yes, because the market value of three(3) chickens per month for 20 years is
equivalent to the market value of the parcel of land.
d. Yes, because there is a meeting of the minds, and they have the autonomy of set
stipulations.

53. Statement 1: A stipulation of pactum commisorium in a contract is void

Statement 2: A loan contract without any stipulation as to interest is void.

a. Only Statement 1 is true

b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.

54. Megan and Beyonce entered into a contract whereby Megan bound herself to deliver 5,000
liters of milk to Beyonce for P2,000,000. Cardi, Beyonce’s competitor in the cheese industry,
gained knowledge of this contract and she induced Megan to deliver milk of inferior quality.
Megan delivered milk of inferior quality which caused Beyonce to be entangled into a lawsuit
with customers because of spoiled cheese. Beyonce discovered that the spoilage of the
cheese was due to Megan delivering milk of inferior quality as induced by Cardi. Beyonce
sued Megan and Cardi for damages. Will the case against Cardi prosper?

a. Yes, because she interfered with the contract between Megan and Beyonce.
b. Yes, but only if she was able to obtain the milk that should have been delivered to
Beyonce.
c. No, because it violates the principle of relativity of contracts considering that she is not
a party to the contract.
d. No, because milk was still delivered to Beyonce.

55. As a general rule, When are contracts perfected?

a. When an offer is made.

b. Upon acceptance of the offer.
c. When preparations as to the execution of the transaction are made.
d. When both parties fulfilled their obligations.

56. Which of the following is a solemn contract?

a. Contract to deliver 500 pieces of wood to a church.
b. Contract of sale of twenty kilos of rice.
c. Contract of donation involving real property.
d. Contract of guaranty.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

57. It is a contract where there is no correlative prestation received by the other party.

a. Remuneratory contract
b. Gratuitous contract
c. Consensual contract
d. Special Contract

58. An insurance contract is an example of:

a. Onerous, nominate, and aleatory contract.

b. Onerous, nominate, and commutative contract.
c. Gratuitous, nominate, and aleatory contract.
d. Gratuitous, nominate and commutative contract.

59. This is the stage of contract when the parties perform their obligations under the contract.

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

60. Statement 1: Acceptance must be qualified in order to perfect a contract.

Statement 2: Acceptance of business advertisement of things for sale perfects a contract.

a. Only Statement 1 is true.

b. Only Statement 2 is true.
c. Both Statements are true.
d. Both statements are not true.

61. Jefferson offered to sell to Adrian pieces of jewelry at a price of P500,000. Jefferson resides
in Cebu while Adrian resides in Davao. The pieces of jewelry are in Vigan. Through sending
of a letter, Adrian intimidated her acceptance of the offer Jefferson received the letter of
acceptance. Jefferson delivered the pieces of jewelry from Vigan to Davao. Adrian made the
payment when they met in Tagaytay. Where is the contract deemed perfected?

a. Cebu c. Vigan
b. Davao d. Tagaytay.

62. Bailey offered to sell to Kida various wearing apparel at a price of P200,000 on Monday. Kida
was able to receive the offer on Tuesday. On Wednesday, he decided to accept the offer and
wrote a letter to that effect. On that day, he sent the letter of acceptance to Bailey. Bailey was
able to receive the letter on Thursday, but since she was busy that day, she was only able to
read the letter on Friday. When was the contract of sale perfected?

a. Monday
b. Wednesday
c. Thursday
d. Friday.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

63. Ms. Charity offered to sell to Mr. Anders fruits at a price of P50,000. Mr. Andres had
reservations, and he informed Ms. Charity that he will instead but the fruits at a price of
P40,000. Ms Charity did not reply. A week after, Mr. Anders learned that Ms. Charity was able
to sell the fruits for P38,000 to another person. Mr. Andres sued Ms. Charity for breach of
contract. Will Mr. Andres suit proper?

a. Yes, because Ms. Charity’s silence constitutes an implied acceptance of Mr. Andrews
offer to buy at P40,000.
b. Yes, because the act of Ms. Charity ignoring Mr. Andres offers is tainted in bad faith,
considering that she subsequently sold the fruits at a lower price.
c. No, because by the nature of the object of the contract, they are perishable, and they
must be sold promptly.
d. No, because no contract was perfected.

64. Which phrase is the most accurate to complete the statement: Deaf-mute who do not know
how to ___________ are incapacitated to give consent?

a. Read
b. Write
c. Read or write
d. Read and write

65. Which of the following is a valid contract?

a. A contract to buy 1,000 square meters on the surface of the Sun for P1,000,000
b. A contract whereby one undertakes to pay P1,000,000 if a commercial space travel
will be available in the future.
c. A contract whereby one sells P500,000 his share in the inheritance of one of his
parents who has not died yet.
d. A contract whereby one sells his spousal rights for two nights for P500,000.

66. As a general rule, contracts are obligatory in:

a. Whatever form
b. When entered into in writing.
c. When entered into in a private instrument.
d. When entered into in a public instrument.

67. Which of the following contracts, if entered into orally, is valid?

a. Donation of the building

b. Donation of a parcel of land.
c. Contrary of agency to sell land
d. Contract to deliver a horse for valuable consideration after two years.

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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

68. Donation of movables should be:

a. In writing
b. In a public instrument
c. In writing, only if the value of the donated property exceeds P5,000
d. In a public instrument, only if the value of the donated property exceeds P5,000.

69. A representation as the credit made by a third person shall be in writing. Otherwise, the
contract is:

a. Void. c. Valid but will not bind third person.

b. Valid, but enforceable. d. Valid, but voidable.

70. S sold to B a parcel of land located in Cotabato at a price of P500 per square meter. The
contract was entered into in a handwritten contract and was not notarized. B paid the price for
the land, and they signed the handwritten Deed of Absolute Sale. However, upon presentation
to the Registry of Deeds of Cotabato, it was not accepted. The office demanded that the Deed
of Absolute Sale be in a public instrument. B went back to S and asked him if they can execute
another Deed in the form required by the Registry of Deeds. S refused. Can B compel S to do
so?

a. No, there was no valid agreement in the first place considering that the required form
for its validity.
b. No, the contract is already valid without the necessity of putting it in a public instrument.
c. Yes. B may compel S to execute a public instrument to be able to bind third persons.
d. Yes, B may compel S to execute a public instrument in order to give the agreement
validity.

71. Before reformation can be had on an instrument:

a. There must be a valid contract with no defect as to the meeting of the minds of the
parties.
b. There must be a vitiation of consent which is the subject of reformation.
c. There must be a defect which will render the contract unenforceable.
d. There must be ambiguity in the intention of the parties to enter into a contract.

72. Which of the following instance of fraud would be remedy of reformation be availing?
i. Fraud employed by the party drafting the contract by inserting provisions in very
fine print prior to signing.
ii. Fraud employed by the party in performing his obligations, i.e., what was
supposed to be delivered is 1,000 sacks of flour but the obligor mixed flour with
sand for volume.
iii. Fraud employed by the party in enticing the other party to enter into a contract,
e.g., telling a potential customer that what is being sold is an authentic painting
by Van Gogh when it is just an imitation.

a. I only. c. I and III only.

b. I and II only d. I, II and III
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

73. When availing of the remedy of reformation:

a. The aggrieved party wants the contract to be annulned.

b. The aggrieved party wants the other party to re-enter into negotiations.
c. The aggrieved party wants to enforce the contract in accordance with their agreement
d. The aggrieved party wants to cure the defect in the consent of the other party.

74. Statement 1: If the mistake is mutual the remedy of reformation is not available.
Statement 2: If the aggrieved party in a contract dies, his heirs can ask for the reformation of
the instrument assuming the deceased aggrieved party is entitled to the remedy.

a. Only statement 1 is true.

b. Only statement 2 is true.
c. Both statements are true.
d. Both statements are not true.

75. Which of the following contracts cannot be reformed?

a. A partially execute contract of loan.

b. A contract of simple donation.
c. A real contract of pledge.
d. A contract of sale of real property entered into in a private instrument.

76. An instrument with the caption “Contract of Sale” was entered into by A and B. Pursuant to
the terms of the contract, A gave P100,000 to B, and B gave the keys of his car to A upon the
condition that A will return the keys of his car if B will be able to return the P100,000. A gave
him. The contract is:

a. A contract of sale c. A contract of pledge

b. A contract of mortgage, d. A contract of barter.

77. Statement 1: A rescissible contract is a valid contract.

Statement 2: A rescissible contract’s defect lies in the vitiation of consent of one of the
contracting parties.

a. Only statement 1 is true,

b. Only statement 2 is true.
c. Both statements are true
d. Both statements are both true.

78. This is the injury which one of the parties suffers by virtue of a contract which is
disadvantageous for him.

a. Damage c. Vitiation
b. Lesion d. Invalidity.
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 Republic of the Philippines
DON HONORIO VENTURA STATE
UNIVERSITY
Villa de Bacolor, Pampanga
Mexico Extension Campus

79. Accion pauliana is remedy availed of by:

a. A ward who suffered lesion.

b. An absentee who suffered lesion
c. A creditor who was defrauded.
d. A minor who was defrauded.

80. Which of the following will generally not vitiate consent?

a. Violence.
b. Intimidation
c. Mistake of law
d. Causal fraud.

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