General Introduction

1. I. Civil law regulates the relation of individuals with other

individuals for private and public ends.
II. One of the Source of our Civil Code R.A. No. 386 of the New
Code.
III. Procedural Law is when private rights may be enforced.

True, True, False C. False, False, True

False, True, False D. False, True, True

2.It governs the relation between human beings as citizens of a

state and the governing power.
A. Constitution Law C. Civil Law
B. Administrative Law D. Mercantile Law

3. Stranger commit homicide.

A. Administrative Law C. Criminal Law
B. Constitutional Law D. Mercantile Law

Subject Introduction

1. I. Culpa Aquiliana has pre-existing contractual relation

between the parties, is obliged to pay for the damage done.
II. Distinctive mark of a quasi-contract from contract is that
in contract, there is consent of the parties, while in quasi-
contract, the obligation arises without a contract.
III.Civil Obgligations arising from criminal offenses shall be
governed by the civil laws.
A. I and III false C. II and III
B. II and I false D. II is false

2. It is the voluntary administration of the property, business

or affairs of a third person without the consent or authority of
its owner
A. Solutio Indebiti C. Quasi-Delict
B. Negotiorum Gestio D. Quasi-Contract

3. Which is different?
A. Without the knowledge of the person obliged to give support,
it is given by a stranger, the latter shall have a right to
claim the same from the former, unless it appears that he gave
it out piety and without intention of being repaid.
B. Payment by mistake of an obligation which was due when paid.
C. If something is received when there is no right to demand it,
and it was unduly delivered through mistake, the obligation to
return it arises.
D. Peter, a merchant-farmer and owner of a ten-hectare
agricultural land, left for USA on a pleasure trip. While enroot
to use, typhoon “Andang” devastated the entire Philippines,
including the land owned by Peter. Before the typhoon reached
our area of responsibility, Beast, neighbor of Peter, employed 2
farms to harvest the palay planted on the land of Peter. The
reimburse amount is only up to what he has paid.

Part One. Contracts

General Provisions
1. I. Essential elements are an element without it a contract
cannot exist.
II. Accidental Elements example is implied warranties
III.Preparation and Birth are the same
IV. Contract is agreement enforceable by court action.
A. Two is wrong
B. Two and III are wrong
C. Two and IV are wrong
D. IV and III are wrong

2. It is the dispositive part of a contract, which cannot be

separate from the principal obligation.
A. Pact C. Consensual
B. Stipulation D. Real

3. Mana has an obligation to Health P50, 000. Mana cannot able

to pay Health so Health Give Mana a chance by letting Mana work
for her without payment until Mana can find a job and Pay
Health.
Contrary to Law C. Contrary to Morals
Contrary to Custom D. Contrary to Public Order

Essential Requisite of Contracts

Consent

1. Requisite of Consent
I. Must be given by two or more parties
II. Parties are capacitated to contract
III. Implied manifestation of the will of the contracting
parties.
IV. Consent must be intelligently or freely given.
A. All correct C. Two Incorrect
B. One Incorrect D. All Incorrect

2. It conceals their true agreement. When not prejudicial to

third person and not intended for any purpose contrary to law,
morals good customs, public order or public policy, binds the
parties to their real agreement.
A. Relative Simulation
B. Absolute Simulation
C. Tolerable Simulation
D. Simulation

3. Number 1 sold to Number 2 10 computer, P5, 000 each or a

total of P50, 000. Number 1 delivered to Number 2 the computers
and upon payment of P50, 000. The receipt issued to Number 2 is
only P40, 000. Was there a mistake, which will render the
contract voidable?
A. There is a mistake but valid because only on the receipt and
did not refer to the object (computer) of the contract.
B. There is a mistake here because the receipt and a material
matter, which should not take, granted thus voidable.
C. There is no mistake here because it is still a payment and
both Parties agreed.
D. There is a mistake here because the recorded amount is P40,
000
Object

1. Statement 1: Impossible things or services cannot be the

object of contracts.
Statement 2: All services which are not contrary to law, morals
good customs, public order or public policy may likewise be the
object of a contract.
Statement 3: The object must be existence at the time of
perfection, or if not in existence at some future time.
Which is incorrect?
A. Statement 2 is incorrect
B. Statement 1 is not incorrect
C. Statement 3 is correct
D. Statement 2 is not incorrect

2. This thing must be within the commerce of men, transmissible,

licit possible and determinate.
A. Cause C. Consent
B. Clause D. Object

3.Diane obliged to give his vote to Mau, who will be running for
mayor, in exchange for P5, 000
A. The contract is valid
B. The object, Kevin’s vote, makes the contract void
C. The object, P10, 000, makes the contract Valid
D. The contract is unenforceable
Cause
1. i. Cause is the personal reason of the contract while motive
is the intrinsic reason.
ii. The contract is voidable if the cause is lawful.
iii. When there is lesion of cause, it shall automatically
invalidate a contract.
iiii. Cause is the proximate purpose why the parties enter into
the contract.
A. True, True, False, True
B. False, True, True, True
C. True, True, False, True
D. True, True, True, True

2. What is one the cause of which is the service or benefit

which is remunerated?
A. Onerous
B. Remuneratory
C. Gratuitous
D. Subjective

3. Clyde sold to Mina her car for P50, 000 because she wanted to
have funds for the purchase of illegal drugs.
A. The contract is void because of the cause of the purchase of
illegal drugs
B. The contract is void because of the motive of selling her
car.
C. The contract is valid because of the cause of the purchase of
illegal drugs.
D. The contract is valid because of the cause is the selling of
her car.
Forms of Contracts

1. I – Contract of donation of immovable which must be in a

private document together with the acceptance of the done.
II – Contract of a donation of personal property whose value
exceeds P5,000 must be in writing together with the acceptance
of the donee.
III – The sale of goods, chattels or things in action whose
price is P500 or more must be in writing to be enforceable.
A. I and II is incorrect
B. II and III is incorrect
C. III and I is incorrect
D. All are incorrect

2. This is a document for the convenience of the parties and so

that they may be registered in the proper recording office to
adversely affects third persons.
A. Private document
B. Public document
C. Semi-private document
D. Receipt

3. Mustache donated her land to PC and had it written in a

private instrument.
A. The contract is valid
B. It is in the form required by law
C. The contract is not valid as to Pc and Mustache
D. The contract is not valid as to other people but valid as to
them.

Reformation of Instruments

1. I. Clear and convincing proof is a necessary in reformation

II. If the mistake is unilateral and the other party acted
fraudulently or inequitably or is guilty of concealment, the
party who acted can ask for reformation.
A. False, True C. True, True
B. False, False D. True, False

2.The remedy in equity by means of which a written instrument is

made or construed so as to express or conform to the real
intention of the parties when there has been error or mistake.
A. Reparation C. Reformation
B. Annulment D. Rescission

3. Magna sold to Len his lot consisting 500 square meters for
P70, 000 cash. However, the contract they signed showed an area
of 1, 200 square meters because of the clerk’s error.
A. Reformation cannot be made because the contract shows the
parties intention
B. Reformation cannot be made because contract did not show the
parties intention.
C. Reformation may be made because the contract shows the
parties intention
D. Reformation may be made because the contract did not show the
parties intention.
Interpretation of Contracts

1. Statement I The parties contemporaneous and subsequent acts

shall be taken into consideration in determining their
intention.
Statement II Whenever there is a conflict between the words used
in the contract and that of the intention of the parties, the
former must prevail.
Statement III The intention shall only be given weight when it
is so clear that there is no doubt.
A. False, True, False C. True, False, False
B. False, False, True D. True, False, True

2. The determination of the meaning of the terms and words used

in the contract.
A. Restitution C. Reparation
B. Reformation D. Interpretation

3. Linda has two cars. She sold one of her cars to Fiend but
without indication which. His ownership of one car is absolute,
while her ownership on the other car is disputed. Which car must
Linda sell?
A. The two cars
B. The car which her ownership is absolute
C. The car disputed
D. None, because the contract is not valid

Different Kinds of Defective Contracts

Rescissible

1.I. The action for rescission is subsidiary

II. Rescission shall only be to the extent necessary to cover
the damage caused.
III. Prescriptive period for rescission if the person is under
guardianship is 4 years from the time guardianship ceases.
A. True, False, True C. True, True, True
B. False, True, True D. False, True, False

2.Which is the least defective contracts?

A. Void C. Voidable
B. Unenforceable D. Rescissible

3.Minchie, Tara’s guardian, sold to Mcdo, her ward, Tara’s land

value P1,000, 000 for P750, 000
A. On capacity of Tara, he can rescind the contract
B. the contract cannot be rescinded
C. The contract is unenforceable
D. On capacity of Tara, Minchie can rescind the contract
Voidable

1. Statement 1. In rescissible, the basis is intrinsic while in

voidable, it is external.
Statement 2. The action for annulment must commence within 4
years.
Choose the best answer.
A. 1 is True
B. 2 is True
C. A and B is True
D. A and B is False

2. The act that cures the defect of the contract celebrated in

the name of another without authority.
A. Reparation C. Ratification
B. Reformation D. Restitution
3. Joan, a minor, sold her land to Nicole, her 28 years old
teacher for P200, 000
A. The contract is valid until annulled
B. The contract is void
C. The contract is rescissible
D. The contract is unenforceable

Unenforceable

1. I. The Statute of Frauds applies only to executory, not to

completed, executed or partially consummated contracts.
II. The Statute of Frauds is a statute design to prevent the
commission of fraud by requiring certain contracts to be in
writing and be subscribed by the party charge.
A. False, True C. False, False
B. True, False D. True, True

2.This is when a contract is created by parties incapable of

giving a consent.
A. Unenforceable
B. Void
C. Voidable
D. Rescissible

3.Tim borrowed from Tam P12, 000 with Tom as guarantor. The
guaranty was made orally. If Tim cannot pay
A. Tam cannot enforce the guaranty against Tom since it was not
in writing
B. Tam cannot enforce the guaranty against Sansa since it was
not in oral
C. Tam can enforce the guaranty to Sansa since it was not made
in writing
D. Tam can enforce the guaranty to Tom since it was made orally.

Void

1. Statement I. Void contracts are not susceptible of

ratification.
Statement II. The action for declaration of nullity is
imprescriptible.
Statement III. The defense of absolute nullity is available to
third persons whose interest is directly affected.
A. True, True, True C. True, False, True
B. False, True, False D. False, False, True

2. The following are characteristics of a void contract, except

A. the action to declare its nullity does not prescribe
B. No action to declare it void is need
C. They are susceptible of ratification
D. Defense of illegality cannot be waived

3. Ash, a minor, sold his father’s land to McDonald for P5, 000,
000
A. the contract is void
B. the contract is valid
C. the contract is voidable
D. the contract is unenforceable

Part Two. Obligation

Nature and Effect of Obligation

1. I. Accessions are those joined to or included with the

principal thing for the latter’ better use.
II. One of the remedies of debtor to enforce his claim to
receive against creditor is AccionSubrogatoria.
III. Injury refers to the harm done and the sum of money that
may be recovered in reparation for the harm done.
A. Only 1 statement is correct
B. Only 2 statement is correct
C. All state is correct
D. All statement is incorrect

2. It is a fraud without which consent would not have been

given.
A. Dolo Incidente
B. Dolo Causante.
C. Culpa Alquliana
D. Culpa Criminal

3. Ana is obliged to give a specific diamond ring to Reyna.

However, Ana knew all along that it was not the specific diamond
ring but it was a metal ring that look like the real one.
A. Voidable
B. Enforceable
C. Void
D. Rescissible

Different Kinds of Obligations

Pure and Condition

1. I. I will give you P50, 000 if K does swim across the Pacific
Ocean is an acceptable obligaton
II. Positive Condition is a condition that some event happens at
an indeterminate time.
III. Pure Obligation is one without a term but don’t have a
condition
A. Statement I and III are correct
B. Statement II and I are correct
C. Statement III is correct
D. Statement II is correct

2. An obligation that is not capable of partial performance by

its nature or by law or agreement of the parties
A. Divisible
B. Indivisible
C. Joint Divisible
D. Solidary Divisible

3. On October 5, 2017, Me agreed to sell his yard to Myself and

Myself agreed to it. Myself need to pay P50, 000 if I finish my
degree program that was stipulated. It was as if Me was entitled
to the price and Myself to the land beginning on October 5,
2017. In this case,
A. Me shall keep the fruits on the yard
B. Me shall keep the interest on the price while Myself does
keep the fruits.
C. Me shall keep the fruits on the yard and Myself keep the
interest on the price.
D. Me shall keep the interest on the price.

With a Period

1. I. Whenever a period is designated in an obligation, it shall

be presumed to have been established for the benefit of both the
creditor and the debtor.
II. The debtor cannot be compelled to perform ad the creditor
may be compelled to accept performance, before the term expired.
III. The debtor loses his right to make use of the period if it
is for his benefit when he fails to furnish the guaranties or
securities that he has promised.
A. I is correct
B. II and I is correct
C. II and III is correct
D. I and III is correct

2. Obligation is demandable at once but is extinguished upon the

lapse of the period.
A. Ex die C. Resolutory Condition
B. In diem D. Suspensive Condition

3. Anabelle borrowed P80, 000 from Conju promising to pledge his

ring to Conju to secure the debt within one month. Conju gave
Anabelle 6 months to pay the loan. Anabelle, however, failed to
pledge his ring within the period agreed upon. In this case,
A. Conju can demand immediate payment even before the agreed due
date thereof.
B. Conju cannot demand the immediate payment because Anabelle
may have the reason not able to.
C. Anabelle can extend the period without Conju’s approval.
D. Conju can demand immediate payment only theagreed date.
Alternative and Facultative

1. Statement I: In an Alternative obligation, the right to

choose belongs to the debtor unless granted to the creditor.
Statement II: The choice shall produce effect even if not
communicated
Statement III: Prestation that is impossible and unlawful are
not permitted for the debtor to choose.
A. One statement is correct
B. Two statement is correct
C. All statement is correct
D. All statement is incorrect

2. What is an obligation where out of two or more prestations

which may be given, only one is due?
A. Facultative
B. Alternative
C. Conjunctive
D. Disjunctive

3. Kiervin is to give Ian a car or bicycle or motor.

What are the things that may happen afterwards?
A. Kiervin can extinguish his obligation if he delivers one of
the property.
B. Kiervin has to deliver all the property.
C. Kiervin need not to deliver because the subject matter is
unknown
D. Kiervin extinguishment can cause only if his obligation turns
to monetary.

Joint and Solidary

1. Statement 1: All partners are liable solidarily with the

partnership if they act complained of arises from crime or
quasi-delict.
Statement 2: The responsibility of two or more persons who are
liable for a quasi-delict is solidary.
Statement 3: Solidary obligations are very burdensome for they
create unusual rights and liabilities.
A. Statement 1 and 3 are correct
B. Statement 3 only is correct
C. Statement 2 and 3 is correct
D. Statement 1, 2 and 3 are correct

2. It is when there are two or more debtors or two or more

creditors, but they are named alternatively.
A. Conjunctive
B. Disjunctive
C. Solidary
D. Joint

3. Agnes binds himself to pay either Chua or Anabelle.

A. Conjunctive
B. Solidary
C. Joint
D. Disjunctive
Divisible and indivisible

1. I. When the purpose of the obligation is to pay a certain

amount in installment.
II. When the accomplishment of work by metrical units
III. When the object of the obligation is the execution of a
certain number of days in work.
A. True, True, True
B. True, True, False
C. True, False, False
D. False, False, False

2. The following obligations are deemed divisible, except:

A. Obligation has for its object the execution of a certain
number days of work.
B. Obligations by their nature are susceptible of partial
performance.
C.Obligation has for its object the accomplishment of work by
metrical units.
D. None of the above.

3. Jessica obliges herself to pay Diane P20,000 on Oct. 23,

2017. The amount is to be paid in five equal monthly
installments beginning October 23, 2017.
A. The obligation is indivisible
B. The obligation is with a condition.
C. The obligation is divisible
D. None of the above

With a Penal Clause

1. Which of the following statements are true?

I. In obligations with penal clause, the penalty shall
substitute the indemnity for damages but not the interests in
case of noncompliance.
II. Proof of actual damages suffered by the creditor is not
necessary in order that the penalty may be demanded.
III. The nullity of the penal clause does not carry with it that
of the principal obligation.
A. I, II
B. I, III
C. II, III
D. I, II, III

2. The court may reduce the penalty in the following instances,

except:
A. Penalty is iniquitous or unconscionable, even if there is no
performance at all.
B. Obligation has been irregularly comply.
C. Either A or B
D. Neither A nor B

3. Peter obliged himself to pay Sam P200, 000 within 3 months

from March 1, 2017, plus a penalty of P20, 000 in case he fails
to pay on due date. After demand for payment by Sam, Peter
offered to pay on May 1, 2017. Sam can collect:
A. P200, 000 plus P20, 000
B. P200, 000 plus legal interest
C. P200, 000 plus P20, 000 plus legal interest
D. P200, 000 plus P20, 000 plus legal interest plus damages

Extinguishment of Obligations

Payment or Performance

1. Statement I: Payment must be in good faith

Statement II: Payment must be in legal tender
Statement III: Payment must be complete
A. One Statement is correct.
B. Two Statement is correct.
C. All Statement is correct.
D. All are incorrect.

2. The money or currency, which the debtor may compel creditor

to accept in payment of deb.
A. Bills
B. Coins
C. Checks
D. Legal Tender

3. Magma obliged Lava P100, 000. On due date. Magma proposed to

Lave to accept specific ring in payment of the debt. Lava
agrees.
A. Obligation is extinguished by cession
B. Obligation is not extinguished
C. Payment for the Obligation turns to monetary
D. Obligation is extinguished by dation in payment

Loss of the Thing Due

1. There is loss when,

Statement: Goes out of commerce
Statement: It perishes
Statement III: It disappears in such way that is existence is
known.
A. Statement I is incorrect.
B. Statement II is incorrect.
C. Statement III is incorrect.
D. All statement is correct.

2. The performance is impossible due to change of condition

after the obligation was constituted and this was not
contemplated by the parties.
A. Beyond Contemplation Rule
B. Quantum Meruit
C. Mutual Agency
D. Beyond Rule of Law Orthodoxy

3. Batman commits the crime of stealing and was asked to return

the property stolen. The property was destroyedin an accident.
Obligation extinguished?
A. No, criminal offense
B. Yes
C. Depends if it results in fortuitous event.
D. No, in default
Condonation or Remission

1. Statement I: Inter vivos: afterdeath

Statement II: Delivery of the thing pledge to the debtor will
extinguished only the contract of pledge not the principal
obligation.
Statement III: Delivery of private property should be voluntary.
A. Only one statement is correct
B. Two Statement is correct
C. All The statement is correct
D. All are incorrect

2. It is the gratuitous abandonment by the creditor of his right

A. Confusion
B. Remission
C. Novation
D. Loss

3. Madman owes happyman a P50, 000. Madman pledge his property.

The documents were given to happyman but happyman later return
it back to Madman.
A. Obligation still exist without pledge.
B. Obligation still exist with pledge.
C. Obligation extinguished
D. Obligation extinguished while pledge exist.

Confusion or Merger

1. Statement I: Merge must take place between the principal

debtor and creditor.
Statement II: Obligations must be unidentical
Statement III: Must be clear and indefinite
A. Only 1 statement is correct
B. Two statement is correct
C. No statement is correct
D. All statement is incorrect

2. It is the meeting in one person of the qualities of creditor

and debtor with respect to the same obligation
A. Merger
B. Remission
C. Novation
D. Compensation

3. Vanilla owes Chocolate P50, 000 with Pizza given as a

Security with Pizza’s consent. Later, Pizza donated the same
land to Chocolate. Is the mortgage valid even if Vanilla does
not own the land mortgage?
A. Yes, the persons constituting the pledge can donate
B. No, because it is still part of the agreement.
C. Yes, because he likes to
D. No, was not agreed by the debtor

Compensation

1. Statement I: A set-off or counterclaim must be pleaded to be

effectual.
Statement II: Compensation takes place by mere operation of law
Statement III: Compensation is sometimes called abbreviated to
simplified payment
A. All statement is correct
B. No state is correct
C. Only One is correct
D. Two Statement is correct

2. It is the extinguishment to the concurrent amount of the

debts of two persons who, in their own rights are debtors and
creditors of each other
A. Novation
B. Merger
C. Compensation
D. Remission

3. Keyboard owes mouse P50, 000 due on Oct, 30, while Mouse owes
P50, 000 keyboard due on Oct, 15. On Oct, 15,
A. Compensation can occur.
B. Mouse has to pay Keyboard.
C. Compensation will not occur because one party is not yet due
D. None of the above.

F. Novation

1. I. Changing the object of the contract is a substantial

change that is considered implied.
II. If the original obligation is void, the new one shall also
be void.
III if the period is shortened, there is novation.
A. All statement is correct
B. No statement is correct
C. Only 1 statement is correct
D. Two statement is correct

2. Change the principal condition

A. Mixed
B. Subjective
C. Objective
D. None of the above

3. Mirana owes Mira P100, 000. Before due date, Mina, a third
person, paid Mira P75, 000 with the consent of Mirana. On due
date, if Mirana has only P50, 000 to pay his obligation,
A. Mirana should pay P25, 000 each.
B. Payment to Mina should be preferred because the obligation of
Mira to him is more onerous.
C. Payment to Mira should be preferred over Mina.
 FINALS OUTPUT
IN
LAW I
OBLIGATIONS AND
CONTRACTS

Submitted by:
Nagac, John Kevin M.

Submitted to:
Atty. ChevrolieE Maglasang- Isoto

TTh 5:30 – 07:00 PM

Answer Keys.
A.General Introduction
1. C
2. A
3. C
B.Subject Introduction
1. A
2. B
3. B
Part One. Contracts
I. General Provision
1. B
2. B
3. C
II. Essential Requisites of Contracts
A. Consent
1. B
2. B
3. A
B. Object
1. A
2. B
3. D
C. Cause
1. A
2. B
3. D
III. Forms of Contracts
1. B
2. B
3. D
IV. Reformation of Intruments
1. B
2. C
3. D
V. Interpretation of Contracts
1. C
2. D
3. B
VI. Different Kinds of Defective Contracts
A. Rescissible
1. C
2. D
3. B
B. Voidable
1. B
2. C
3. A
C. Unenforceable
1. D
2. A
3. A
D. Void
1. A
2. B
3. A

Part Two. Obligations

I. Nature and Effect of Obligations
1. D
2. B
3. A
II. Different Kinds of Obligations
A. Pure and Conditional
1. C
2. B
3. C
B. With A Period
1. D
2. B
3. A
C. Alternative and Facultative
1. B
2. B
3. A
D. AJoint and Solidary
1. A
2. B
3. D
E. Divisible and Indivisible
1.
2.
3.
F.With a Penal Clause
1.
2.
3.
III. Extinguishment of Obligations
A. Payment or Performance
1. C
2. D
3. D
B. Loss of the Thing Due
1. C
2. A
3. A
C. Condonation or Remission
1. B
2. B
3. A
D. Conusion or Merger
1. A
2. A
3. A
E. Compensation
1. A
2. C
3. C
F. Novation
1. A
2. B
3. C