Chapter:

130+ Review 2 Solved MCQs

in Philippines Civil Law Society

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Uncategorized topics .

Chapters

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1.	A bus owned and operated by CRV Lines, Inc., and negligently driven by Mr. D, an employee rammed a Meralco lamp post. The incident injured Mr. P, a passenger, Mr. PD, a pedestrian. Which is correct?
A.	Mr. D cannot be sued under a culpa criminal theory of Mr. P.
B.	Mr. P can sue CRV Lines under a quasi delict theory as employer of Mr. D.
C.	Mr. PD can sue CRV Lines under a contractual theory.
D.	CRV Lines can be sued by Mr. P only under a contractual theory.
Answer» B. Mr. P can sue CRV Lines under a quasi delict theory as employer of Mr. D.

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2.	Mr. Seller offered to sell to Mr. Buyer, a parcel of land for P5 million. Because the latter could not make up his mind, Mr. Seller gave him thirty (30) days within which to decide.
A.	Seller may always withdraw the offer before 30 days.
B.	Seller can withdraw the offer prior to acceptance by Mr. Buyer.
C.	Seller cannot withdraw before the lapse of 30 days.
D.	Answer is not given.
Answer» B. Seller can withdraw the offer prior to acceptance by Mr. Buyer.

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3.	Miss X, is a passenger in a jeepney driven by Mr. D and owned by Mr. O. The jeepney was rear-ended by another jeep owned by Mr. TP. Investigations disclosed that the fault was due to the driver of Mr. TP. Which is not correct?
A.	Miss X may sue Mr. O under a breach of contract of carriage.
B.	Miss X may sue Mr. TP under a culpa aquiliana theory.
C.	Miss X may sue the driver of Mr. TP under a culpa criminal theory.
D.	Mr. O in a suit by Miss X for breach of contract may defend by alleging that the proximate cause of the accident was the jeepney of Mr. TP.
Answer» D. Mr. O in a suit by Miss X for breach of contract may defend by alleging that the proximate cause of the accident was the jeepney of Mr. TP.

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4.	Mr. Buyer bought a car from Mr. Seller, a dealer of cars under the following terms: (i) down payment of P500,000; (ii) entire balance is to be paid on December 24, 2004; (iii) a chattel mortgage is to be executed over the car bought or sold in favor of Mr. Seller. If on the due date for the balance, no payment is paid despite demand.
A.	Mr. Seller may foreclose the mortgage on the car and recover any balance if there be a deficiency in the foreclosure sale.
B.	Mr. Seller can foreclose the mortgage on the car but is precluded from recovering any balance.
C.	Mr. Seller cannot foreclose the mortgage. His only remedy is to sue for the balance.
D.	Mr. Seller can only cancel or rescind the sale.
Answer» B. Mr. Seller can foreclose the mortgage on the car but is precluded from recovering any balance.

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5.	Mr. Seller offered to sell a parcel of land Mr. Buyer orally for P5 million. Mr. Buyer accepted orally on November 5, 2004.
A.	The sale is voidable.
B.	The sale is valid and can be registered.
C.	The sale is valid but unenforceable and cannot be register
Answer» C. The sale is valid but unenforceable and cannot be register

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6.	Mr. X. donated a cell phone worth P35,000 to Mr. B orally and delivered the same to Mr. B who accepted.
A.	The donation is valid.
B.	The donation is voidable and may be annulled.
C.	The donation is void and Mr. X may get the cell phone back.
D.	The donation is void but Mr. X cannot get the cell phone back.
Answer» C. The donation is void and Mr. X may get the cell phone back.

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7.	Which among the following must be in writing to be valid?
A.	A sale of a land.
B.	Every donation of personal or movable property.
C.	A contract of partnership with a contribution of an immovable.
D.	An authority by the principal to an agent to sell movables.
Answer» C. A contract of partnership with a contribution of an immovable.

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8.	The following are contracts that require the delivery of the subject matter before a perfected contract exists. Which is the exception?
A.	An agreement to borrow/lend money.
B.	An agreement to borrow/lend a car.
C.	An agreement to deposit 1,000 bags of cement in a warehouse.
D.	A sale of a car.
Answer» D. A sale of a car.

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9.	Mr. Seller offered a parcel of land to Mr. Buyer No. 1 under a contract to sell. Subsequently, Mr. Seller sold the same land to Mr. Buyer No. 2 who paid the price. After a couple of days, Mr. Buyer No. 1 paid the price. Which is correct?
A.	The one with a better right is Buyer No. 2
B.	Mr. Seller has done a double sale.
C.	The one with the better right is the buyer who registers the sale first in good faith.
D.	There is no double sale.
Answer» C. The one with the better right is the buyer who registers the sale first in good faith.

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10.	No. 1 – Fraud is always a ground for annulment of a contract. No. 2 – A simulated contract is voidable.
A.	Both are false.
B.	Both are true.
C.	No. 1 is false; No. 2 is true.
D.	No. 1 is true; No. 2 is false.
Answer» B. Both are true.

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11.	Which contract is rescissible?
A.	A contract where both parties are of unsound mind.
B.	A contract violating the statute of frauds.
C.	A contract where the debtor sells his property to defraud the creditor where the buyer is in good faith.
D.	None of the above.
Answer» B. A contract violating the statute of frauds.

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12.	When the debtor binds himself to pay when his means shall permit him to do so,
A.	The obligation is deemed to be one with a period.
B.	The obligation is a conditional obligation.
C.	The obligation is vo
Answer» A. The obligation is deemed to be one with a period.

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13.	Which of the following contracts is not unenforceable?
A.	An oral agreement to pay for the debt, default or miscarriage of another.
B.	An oral sale of land.
C.	An oral sale of movables with a value of P500.
D.	An oral agreement to lend P50,000.
Answer» D. An oral agreement to lend P50,000.

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14.	No. 1 – A contract of sale is a mode of acquiring ownership. No. 2 – Every delivery transfers ownership.
A.	Both are false.
B.	Both are true.
C.	No. 1 is true; No. 2 is false.
D.	No. 1 is false; No. 2 is true.
Answer» A. Both are false.

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15.	Mr. X pledged his gold watch to Mr. Y as security for a loan. The loan was not paid.
A.	Mr. Y may appropriate the ring as his own if there is a stipulation to that effect.
B.	Mr. Y must sell the ring to someone else even in a private sale.
C.	Mr. Y may recover the deficiency from Mr. X if after the auction sale, a deficiency exists.
D.	Mr. Y cannot recover the deficiency after the auction sale.
Answer» D. Mr. Y cannot recover the deficiency after the auction sale.

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16.	The benefit of “exclusion” is available in a contract of
A.	guarantee
B.	suretyship
C.	pledge
D.	antichresis
Answer» A. guarantee

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17.	Mr. Seller and Mr. Buyer orally agreed on the following: (i) the land to be sold has an area of 10,000 sq. meters; (ii) price is P5 million; and (iii) Mr. Seller shall prepare the deed of sale. With fraudulent intent, Mr. Seller knowing the inadequacies of Mr. Buyer with respect to numbers wrote 1,000 sq. meters instead of 10,000 sq. meters. The sale is
A.	void
B.	voidable but the contract may be reformed
C.	valid but the instrument may be reformed
D.	valid but the contract may be reformed
Answer» C. valid but the instrument may be reformed

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18.	Mr. X promised to deliver a specified dog named “Auger” to Mr. Y on April 29, 2005.On the due date, no dog was delivered. Which is not correct?
A.	If the dog died on April 30 without anyone’s fault, Mr. X shall be liable to Mr. Y by reason of delay.
B.	Mr Y shall bear the loss because of res perit domino.
C.	Mr. Y shall bear the loss because of genus nunquan perit.
D.	Mr X shall bear the loss because of genus nunquan perit.
Answer» C. Mr. Y shall bear the loss because of genus nunquan perit.

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19.	No. 1 – The mortgagor in a real estate mortgage may sell the property mortgaged despite a prohibition to that EFFECT. No. 2 – If there is a balance after the foreclosure sale in a chattel mortgage arising he deficiency cannot be recovered.
A.	Both are true.
B.	Both are false.
C.	No. 1 is false; No. 2 is true.
D.	No. 1 is true; No. 2 is false.
Answer» D. No. 1 is true; No. 2 is false.

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20.	No. 1 – The laws governing deposits govern the relationship between a bank depositor and a bank. No. 2 – A creditor may be compelled to receive a certified check in payment of a loan.
A.	Both are false.
B.	Both are true.
C.	No. 1 is true; No. 2 is false.
D.	No. 1 is false; No. 2 is true.
Answer» A. Both are false.

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21.	.Mr. X lost heavily in a private gambling with Mr. Y. He still owes Mr. Y P250,000 representing losses. Which is not true?
A.	The wife of Mr. X may file a suit to recover the losses if Mr. X refuses to file the suit.
B.	Mr. Y has the obligation to return the losses of Mr. X.
C.	Mr. X is estopped from recovering his losses.
D.	Mr. Y cannot collect the unpaid losses of Mr. X.
Answer» C. Mr. X is estopped from recovering his losses.

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22.	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.
Answer» C. unenforceable because Mr. X had no authority but he sold the car in the name of Mr. Y, the owner.

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23.	Mr. MO executed a real estate mortgage over his land in favor of Mr. ME as security for a substantial loan he obtained from the latter. The mortgage agreement provided for a “first refusal clause”, i.e., Mr. MO, is obligated to offer the property first to Mr. ME in case he decides to sell the property mortgaged. Which of the following statements expresses a correct legal principle?
A.	As long as the mortgage exists, Mr. MO has no right to sell his property to anyone.
B.	Mr. MO may sell the property mortgaged with the consent of Mr. ME.
C.	A violation of the “right of first refusal clause” will make the contract entered into by Mr. MO with anyone, void abs initio.
D.	A violation of the ‘right of first refusal clause” will make the contract entered into by Mr. ME rescissible
Answer» D. A violation of the ‘right of first refusal clause” will make the contract entered into by Mr. ME rescissible

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24.	Which of the following contracts are void?
A.	An oral sale of a parcel of land.
B.	A sale of land by an agent in a public instrument where his authority from the principal is oral.
C.	A donation of a wrist watch worth P4,500.
D.	A relatively simulated contract.
Answer» B. A sale of land by an agent in a public instrument where his authority from the principal is oral.

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25.	Which of the following expresses a correct principle of law?
A.	Failure to disclose facts when there is a duty to reveal them, does not constitute fraud.
B.	Violence or intimidation does not render a contract annullable if employed not by a contracting party but by a third person.
C.	A threat to enforce one’s claim through competent authority, if the claim is legal or just, does not vitiate consent.
D.	Simulation of a contract always results in a void contract.
Answer» D. Simulation of a contract always results in a void contract.

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26.	.Mr. X orally offered to sell his two-hectare rice land to Mr. Y for P10 million. The offer was orally accepted. By agreement, the land was to be delivered (through execution of a notarized deed of sale) and the price was to be paid exactly one-month from their oral agreement.
A.	If Mr. X refuses to deliver the land on the agreed date despite payment by Mr. Y, the latter may not successfully sue Mr. X because the contract is oral.
B.	If Mr. X refuses to deliver the land, Mr. Y may successfully sue for fulfillment of the obligation even if he has not tendered payment of the purchase price.
C.	The contract between the parties is rescissible.
D.	The contract between the parties is subject to ratification by the parties.
Answer» D. The contract between the parties is subject to ratification by the parties.

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27.	Which of the contracts below are rescissible?
A.	Those entered into by guardians whenever the wards whom they represent suffer lesion by more than one third of the value of the object subject matter thereof.
B.	Those entered into by guardians in the above when the lesion suffered is one fourth of the value of the property.
C.	Those undertaken in fraud of creditors even if the latter has other means to collect the debt.
D.	Those where the contract is absolutely simulated.
Answer» A. Those entered into by guardians whenever the wards whom they represent suffer lesion by more than one third of the value of the object subject matter thereof.

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28.	Which of the following reflects a correct legal principle?
A.	A, B, and C, are co-owners of a three-hectare orchard. If A decides to sell his share to B, C has a right of redemption.
B.	A and B are adjoining owners of a rural land. Each land has an area of half a hectare. If B sells his land to D who does not own any rural land, C has a right of redemption.
C.	If the right to repurchase is not exercised within the period agreed upon, a judicial order is necessary to consolidate ownership on the buyer.
D.	A contract of sale is not a mode of acquiring ownership.
Answer» D. A contract of sale is not a mode of acquiring ownership.

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29.	Mr. S sold his land to Mr. B with a right to repurchase within ten years from the date of sale. Despite the lapse of the period of redemption, no such redemption was made.
A.	Ownership of the land was consolidated on Mr. by virtue of the failure to redeem by Mr. S.
B.	Ownership of the land will be consolidated only upon the registration of the sale with the registry of deeds.
C.	Ownership of the land will be consolidated only upon a judicial order.
D.	Ownership will be consolidated only with the consent of Mr. S.
Answer» C. Ownership of the land will be consolidated only upon a judicial order.

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30.	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 lessee 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.
Answer» D. The contract is presumed to be an equitable mortgage.

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31.	A and B are capitalist partners, with C as an industrial partner. A and B contributed P15, 000.00 each to the capital of the partnership. A contractual liability of P40, 000.00 was incurred by the partnership in favor of X. If the capital assets have been exhausted to pay X, leaving a contractual liability of P10, 000.00, X can recover the amount from:
A.	A and B only
B.	A, B and C
C.	A, B and C and C can recover for reimbursement from A and B
D.	No reimbursement may be recovered by C.
Answer» A. A and B only

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32.	A, B and C are partners engaged in a retail business. Their contribution is P20, 000.00 each. D is admitted as a new partner with a contribution of P8, 000.00. At the time of his admission, the partnership has an outstanding obligation to E in the amount of P80, 000.00. In this case:
A.	D is not liable to E for this obligation and his P8,000 contribution shall remain with the partnership
B.	D is liable to E for this obligation so that after the assets of the partnership amounting to P68, 000.00 will be exhausted leaving a balance of P12, 000.00, only A, B and C shall be liable jointly or pro rata, out of their separate property.
C.	D is liable to E for this obligation so that after the assets of the partnership will be exhausted, leaving a balance of P12,000.00, all the partners shall be liable jointly or pro rata, including D, out of their separate property.
D.	D will be liable only if he knew of the liability of P80,000 at the time he joined the partnership.
Answer» B. D is liable to E for this obligation so that after the assets of the partnership amounting to P68, 000.00 will be exhausted leaving a balance of P12, 000.00, only A, B and C shall be liable jointly or pro rata, out of their separate property.

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33.	Mr. Ayco offered to sell his land to Mr. Cruz for P300,000. Mr. Cruz accepted the offer and paid Mr. Ayco the purchase price. Mr. Ayco delivered the owner’s duplicate of the Transfer Certificate of title of the land. Mr. Cruz wants to register the land in his name but the Register of Deeds asks Mr. Cruz for the Deed of Sale. What can Mr. Cruz do?
A.	He may occupy and use the land as a buyer in good faith.
B.	He cannot compel Mr. Ayco to return the payment because the contract is unenforceable.
C.	He may compel Mr. Ayco to execute the Deed of Sale because the contract is val
Answer» C. He may compel Mr. Ayco to execute the Deed of Sale because the contract is val

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34.	Andrea wrote Bernardo a letter offering to sell a piece of land. Andrea gave Bernardo two months within which to pay the price of P500,000. After 50 days Andrea informed Bernardo that she is increasing the price of the land to P700, 000. Can Bernardo compel Andrea to accept the P500,000 first offered and execute the deed of sale?
A.	No, because Bernardo did not signify his acceptance of the offer of P500,000
B.	Yes, because the period of 2 months has not yet expired.
C.	Yes, because Andrea is already estopped by her signed letter.
D.	Yes, because there was actual meeting of minds of the parties.
Answer» A. No, because Bernardo did not signify his acceptance of the offer of P500,000

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35.	Antonio sold a piece of land to Renato binding himself not to sell the same to another person. On the following day, Antonio sold the land to Carlos who immediately took possession in good faith. In the case at bar, the proper remedy of Renato is to:
A.	Institute an action for the annulment of the sale to Carlos.
B.	Institute an action for the recovery of the land.
C.	Institute an action for damages against Antonio.
D.	Institute an action for a declaration of nullity of the sale to Carlos.
Answer» C. Institute an action for damages against Antonio.

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36.	Mr. Reyes has a tax liability of P100, 000. In order to evade the payment of the tax liability, he executed a deed of sale of his only parcel of land valued for P100, 000.00 in favor of his brother, Pablo. The deed of sale stated a purchase price of P20, 000.00 but the BIR has evidence that said price had never been paid.
A.	The BIR may not levy upon the land because the sale is valid.
B.	The BIR, without having the sale annulled may levy upon the land of (Mr.Reyes pursuant to the Tax Code.
C.	The BIR should first have the sale annulled before it may levy upon the land pursuant.
D.	The BIR should first have the sale rescinded for lesion to the government.
Answer» B. The BIR, without having the sale annulled may levy upon the land of (Mr.Reyes pursuant to the Tax Code.

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37.	Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. Which of the following constitutes an offer?
A.	an definite offer made through an agent
B.	business advertisement of things for sale
C.	advertisements for bidders
D.	a declaration of an intent to sell.
Answer» A. an definite offer made through an agent

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38.	When goods are delivered to the buyer “on sale or return”, for a period of seven (7) days, ownership of the goods passes to the buyer,
A.	Upon delivery of the goods.
B.	Upon expiration of seven (7) days.
C.	Upon acceptance by the buyer of the offer of the seller.
D.	Upon perfection of the contract.
Answer» B. Upon expiration of seven (7) days.

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39.	Ben pledged his watch to V. Y. Domingo for P5,000. On the due date Ben failed to pay his loan and redeem the watch. The pawnshop sold the watch at public auction to the highest bidder at P4,000.
A.	The pawnshop can recover the deficiency of P1, 000 from Ben.
B.	The pawnshop cannot recover the P1, 000 unless there is a stipulation.
C.	The pawnshop can recover the P1, 000 even without a stipulation.
D.	The pawnshop cannot recover the P1, 000 even if there is a stipulation.
Answer» A. The pawnshop can recover the deficiency of P1, 000 from Ben.

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40.	Mr. X executed a chattel mortgage over his house and lot to Mr. Y. When the obligation became due, Mr. X did not pay despite demand.
A.	Mr. Y has no right to foreclose the mortgage because the house and lot are not chattels.
B.	Mr. Y has no right to foreclose the mortgage unless Mr. X consents to the foreclosure.
C.	Mr. Y has no right to foreclose the mortgage because he can sue for collection.
D.	Mr. Y may foreclose the mortgage because Mr. X is estopped from claiming the invalidity of the chattel mortgage over the real property, but foreclosure should be made under the procedure of a real estate mortgage.
Answer» D. Mr. Y may foreclose the mortgage because Mr. X is estopped from claiming the invalidity of the chattel mortgage over the real property, but foreclosure should be made under the procedure of a real estate mortgage.

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41.	Mr. D borrowed P500, 000 from Mr. C with Mr. G as guarantor. When the debt fell due, Mr. D did not pay despite demand.
A.	Mr. C may collect from Mr. G because he guaranteed payment of the debt.
B.	Mr. G may refuse to pay even if Mr. D is insolvent.
C.	Mr. G may ask Mr. C to exhaust all the properties of the Mr. D first before collecting from Mr. G.
D.	Mr. G may refuse to pay even if Mr. D has absconded.
Answer» C. Mr. G may ask Mr. C to exhaust all the properties of the Mr. D first before collecting from Mr. G.

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42.	Every contract of partnership having a capital of three thousand pesos or more, in money or property, shall appear in a public instrument, which must be recorded in the Office of the Securities and Exchange Commission. Failure to comply with this requirement;
A.	renders the contract of partnership void.
B.	renders the contract of partnership unenforceable.
C.	affects the liability of the partnership to third persons and the partnership has no legal personality.
D.	does not affect the liability of the partnership to third persons and the partnership still has a legal personality.
Answer» D. does not affect the liability of the partnership to third persons and the partnership still has a legal personality.

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43.	X is not a partner of A, B, and C. Without the consent or knowledge of C but with the implied consent of A and B, X made T believe that he is a partner of A, B, and C. Who shall be liable for the payment of a debt of P500, 000 in favor of T who extended credit on the basis of the misrepresentation?
A.	X, A and B pro rata.
B.	X, A and B solidarily.
C.	X, A, B and C pro rata.
D.	X, A, B and C solidarily.
Answer» A. X, A and B pro rata.

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44.	Seller wrote Buyer offering to sell his only house for a specified price. The letter was mailed on the same date it was written. Buyer offered to buy the same house for the same price and the letter containing the offer to buy was also mailed on the same date it was written. On the same date and time Seller and Buyer received the letters written to each other.
A.	There is a perfected contract.
B.	There is a perfected contract only when they have orally confirmed their having received the letters written to each other.
C.	There is no contract because the offers were not certain.
D.	There is no contract because there was no acceptance.
Answer» D. There is no contract because there was no acceptance.

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45.	Jose went to visit Pablo, a friend one Sunday morning where a card game was going on. Jose joined the game and lost P50,000. He became indebted to the winner for P10, 000 more. Which among the following statements is not correct?
A.	The winner cannot maintain an action to collect the P10,000.
B.	Jose may recover P50,000 from the winner with legal interest from the time he paid the amount lost.
C.	Jose may recover P50,000 from the winner but without legal interest.
D.	If Jose refuses to recover from the winner, the spouse of Jose may institute the action to recover.
Answer» C. Jose may recover P50,000 from the winner but without legal interest.

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46.	For payment to extinguish the obligation:
A.	The thing or service in which the obligation consists must be completely delivered or rendered.
B.	Payment must not have been justifiably refused by the creditor.
C.	Payment must be in legal tender.
D.	All of the above.
Answer» D. All of the above.

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47.	Which of the following is most likely incorrect?
A.	Mr. D promised to deliver to Mr. C 100 bottles of Japanese red wine of a specified brand. Without the knowledge of Mr. D, production of the wine had been stopped. Despite earnest efforts, Mr. D could only deliver ninety (90) bottles. Mr. O’s obligation is deemed fulfilled.
B.	In the immediately preceding letter (a), Mr. D could recover as though there had been a delivery of 100 bottles.
C.	Mr. D promised to deliver 100 sacks of a certain type of rice. He delivered only 90 sacks but the obligee did not object to the incomplete delivery. The obligation may be deemed fully perform
Answer» B. In the immediately preceding letter (a), Mr. D could recover as though there had been a delivery of 100 bottles.

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48.	Debtor owes Creditor P500,000. The debt is secured by a chattel mortgage on Debtor’s car. On the due date of the obligation, Creditor is paid by Third Person who has no interest in the obligation either as guarantor or surety. There is likewise no stipulation as to Third Person’s right to pay.
A.	If Third Person pays without the knowledge or against the will of Debtor, Third Person may recover P500, 000 from Debtor even if the debt had been condoned to the extent of ½.
B.	If Third Person pays with the Debtor’s knowledge and consent, Third Person may recover P500, 000 from Debtor even if the debt had been condoned to the extent of ½. If Debtor fails to pay, Third Person may foreclose the mortgage on Debtor’s car.
C.	Same as letter “b” except that Third Person may not foreclose the mortgage on Debtor’s car, unless Creditor consents.
D.	Same as letter “b” except that Third Person may not foreclose the mortgage on Debtor’s car because the mortgage was exclusively constituted in Creditor’s favor.
Answer» B. If Third Person pays with the Debtor’s knowledge and consent, Third Person may recover P500, 000 from Debtor even if the debt had been condoned to the extent of ½. If Debtor fails to pay, Third Person may foreclose the mortgage on Debtor’s car.

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49.	Which among the situations below states a correct principle of law?
A.	Third Person pays Debtor’s debt without intending to be reimbursed by Debtor. The payment will not extinguish the obligation even if accepted by Creditor if Debtor does not consent to the payment.
B.	Third person pays Debtor’s debt without intending to be reimbursed by (c) Debtor. The payment will extinguish the obligation if Debtor does not consent to the payment.
C.	Debtor is obliged to give Creditor a Rado watch. Since no Rado watch was available on the due date, Debtor decided to deliver a watch of a different brand more valuable than the one that is due. Creditor must accept the watch.
D.	D owes C P20, 000. D pays B, brother of C. The payment is not valid even if it redounded to the benefit of C.
Answer» D. D owes C P20, 000. D pays B, brother of C. The payment is not valid even if it redounded to the benefit of C.

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50.	Debtor owes Creditor P20, 000. On the due date of the obligation, Debtor could not pay. Debtor instead offered his TV set worth P20,000 in payment of the obligation. Creditor agrees.
A.	There is no payment because the debt may only be discharged by the delivery of legal tender.
B.	There is payment pursuant to a facultative obligation because of a substitution.
C.	There is dation in payment or dacion en pago.
D.	There is payment by cession.
Answer» C. There is dation in payment or dacion en pago.

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130+ Review 2 Solved MCQs

A bus owned and operated by CRV Lines, Inc., and negligently driven by Mr. D, an employee rammed a Meralco lamp post. The incident injured Mr. P, a passenger, Mr. PD, a pedestrian. Which is correct?

Mr. Seller offered to sell to Mr. Buyer, a parcel of land for P5 million. Because the latter could not make up his mind, Mr. Seller gave him thirty (30) days within which to decide.

Miss X, is a passenger in a jeepney driven by Mr. D and owned by Mr. O. The jeepney was rear-ended by another jeep owned by Mr. TP. Investigations disclosed that the fault was due to the driver of Mr. TP. Which is not correct?

Mr. Seller offered to sell a parcel of land Mr. Buyer orally for P5 million. Mr. Buyer accepted orally on November 5, 2004.

Mr. X. donated a cell phone worth P35,000 to Mr. B orally and delivered the same to Mr. B who accepted.

Which among the following must be in writing to be valid?

The following are contracts that require the delivery of the subject matter before a perfected contract exists. Which is the exception?

Mr. Seller offered a parcel of land to Mr. Buyer No. 1 under a contract to sell. Subsequently, Mr. Seller sold the same land to Mr. Buyer No. 2 who paid the price. After a couple of days, Mr. Buyer No. 1 paid the price. Which is correct?

No. 1 – Fraud is always a ground for annulment of a contract. No. 2 – A simulated contract is voidable.

Which contract is rescissible?

When the debtor binds himself to pay when his means shall permit him to do so,

Which of the following contracts is not unenforceable?

No. 1 – A contract of sale is a mode of acquiring ownership. No. 2 – Every delivery transfers ownership.

Mr. X pledged his gold watch to Mr. Y as security for a loan. The loan was not paid.

The benefit of “exclusion” is available in a contract of

Mr. X promised to deliver a specified dog named “Auger” to Mr. Y on April 29, 2005.On the due date, no dog was delivered. Which is not correct?

No. 1 – The mortgagor in a real estate mortgage may sell the property mortgaged despite a prohibition to that EFFECT. No. 2 – If there is a balance after the foreclosure sale in a chattel mortgage arising he deficiency cannot be recovered.

No. 1 – The laws governing deposits govern the relationship between a bank depositor and a bank. No. 2 – A creditor may be compelled to receive a certified check in payment of a loan.

.Mr. X lost heavily in a private gambling with Mr. Y. He still owes Mr. Y P250,000 representing losses. Which is not true?

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

Which of the following contracts are void?

Which of the following expresses a correct principle of law?

.Mr. X orally offered to sell his two-hectare rice land to Mr. Y for P10 million. The offer was orally accepted. By agreement, the land was to be delivered (through execution of a notarized deed of sale) and the price was to be paid exactly one-month from their oral agreement.

Which of the contracts below are rescissible?

Which of the following reflects a correct legal principle?

Mr. S sold his land to Mr. B with a right to repurchase within ten years from the date of sale. Despite the lapse of the period of redemption, no such redemption was made.

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 lessee of the land and shall be responsible for the real estate taxes.

A, B and C are partners engaged in a retail business. Their contribution is P20, 000.00 each. D is admitted as a new partner with a contribution of P8, 000.00. At the time of his admission, the partnership has an outstanding obligation to E in the amount of P80, 000.00. In this case:

Antonio sold a piece of land to Renato binding himself not to sell the same to another person. On the following day, Antonio sold the land to Carlos who immediately took possession in good faith. In the case at bar, the proper remedy of Renato is to:

Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. Which of the following constitutes an offer?

When goods are delivered to the buyer “on sale or return”, for a period of seven (7) days, ownership of the goods passes to the buyer,

Ben pledged his watch to V. Y. Domingo for P5,000. On the due date Ben failed to pay his loan and redeem the watch. The pawnshop sold the watch at public auction to the highest bidder at P4,000.

Mr. X executed a chattel mortgage over his house and lot to Mr. Y. When the obligation became due, Mr. X did not pay despite demand.

Mr. D borrowed P500, 000 from Mr. C with Mr. G as guarantor. When the debt fell due, Mr. D did not pay despite demand.

Every contract of partnership having a capital of three thousand pesos or more, in money or property, shall appear in a public instrument, which must be recorded in the Office of the Securities and Exchange Commission. Failure to comply with this requirement;

X is not a partner of A, B, and C. Without the consent or knowledge of C but with the implied consent of A and B, X made T believe that he is a partner of A, B, and C. Who shall be liable for the payment of a debt of P500, 000 in favor of T who extended credit on the basis of the misrepresentation?

Jose went to visit Pablo, a friend one Sunday morning where a card game was going on. Jose joined the game and lost P50,000. He became indebted to the winner for P10, 000 more. Which among the following statements is not correct?

For payment to extinguish the obligation:

Which of the following is most likely incorrect?

Debtor owes Creditor P500,000. The debt is secured by a chattel mortgage on Debtor’s car. On the due date of the obligation, Creditor is paid by Third Person who has no interest in the obligation either as guarantor or surety. There is likewise no stipulation as to Third Person’s right to pay.

Which among the situations below states a correct principle of law?

Debtor owes Creditor P20, 000. On the due date of the obligation, Debtor could not pay. Debtor instead offered his TV set worth P20,000 in payment of the obligation. Creditor agrees.