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1. Rex Guapo, the sexy gentleman from the north, and Darryl Pogi,
the handsome black preacher who teach incessantly Hebrews 11:1, who
are both of legal age and under the state of dementia entered into a
contract. The Contract entered into by and between them is:
a. Rescissible
b. Voidable
c. Void
d. Unenforceable

2. Raymond sold his 19 yrs, 11 months, 29 days old beautiful horse


with three long weeks remaining life with pink tail to her girfriend
Susan for P2, 500. No payment has yet been made and the sales
document does not provide the date of delivery. Before delivery and
payment, the horse gave birth to an ugly smiling face baby horse
without teeth.
a. Raymond is entitled to the fruit (baby horse) as Susan
has not paid the price yet.
b. Raymond is entitled to the fruit (baby horse) because it
was born before his obligation to deliver the horse.
c. Susan should pay additional amount for the baby horse to
be entitled to it.
d. Susan is entitled to the baby horse which was born after
the perfection of the contract.

3. A wrote a letter to B wherein A offers to sell a piece of land to


B for P 200, 000. B signified his desire to buy the land. In A’s
letter, B was given a period of two months within which to produce
the P 200, 000. After 59 days, A told B that the price of the land
is now P250, 000. Can B compel A to accept the P 200, 000 first
offered by A and execute the Deed of Sale.
a. Yes, because there was actual meeting of the minds of the
parties.
b. Yes, because A is already estopped by his signed letter.
c. No, for B did not signify his acceptance of A’s offer.
d. Yes, because the period of two months has not expired.

4. If immovable property should have been sold to different vendees,


the ownership shall be transferred to the person
a. Who have first taken possession in good faith
b. Who in good faith first recorded it in the Registry of
Property
c. Who presents the oldest title in good faith
d. Who have paid in good faith the purchase price in full

5. Using the preceding number, if movable property, it shall belong


to the person
a. Who have paid in good faith the purchase price in full
b. Who in good faith first recorded it in the Registry of
Property
c. Who have first taken possession in good faith
d. Who presents the oldest title in good faith

6. Action to seek a corresponding reduction in price by reason of


some vices or defects in the thing purchased
a. Accion quanti minoris c. Accion pauliana
b. Accion reinvidicatoria d. Redhibilitory action

7. The right of the seller to stop the goods in transit, upon


discovering that the buyer does not have the funds to pay for the
goods
a. Pre-emptive right
b. Appraisal right
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c. Voting right
d. Right of stoppage in transitu

8. Voluntary renunciation made by the buyer of his right to warranty


against eviction where in case the buyer is evicted, the seller is
liable to the value of the thing at the time of eviction.
a. Waiver intentionada c. Waiver cursunada
b. Waiver consciente d. Waiver Inocente

9. Using the preceding number, where the seller is no longer liable


a. Waiver intentionada c. Waiver cursunada
b. Waiver consciente d. Waiver Inocente

10. Not an implied warranty in a contract of sale


a. Reasonably fit for the purpose they are acquired
b. Merchantable in quality
c. Right to sell the thing at the time of perfection of
the contract
d. Free from charges or encumbrances not declared or
known to the buyer

11. A contract to make a deposit, to make a pledge or to make a


commodatum is
a. consensual contracts
b. real contracts
c. solemn contracts
d. formal contracts

12. Acceptance of an offer made by letter or telegram shall bind the


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

13. A contract with a cause distinct from the selling price


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

14. The process of intentionally deceiving others by producing the


appearance of a contract which is different from the true agreement
a. Absolute simulation c. Fraud
b. Relative simulation d. Misrepresentation

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


a. An agreement for the sale of goods, chattels, or things
in action at a price not less than P500
b. An agreement for the leasing for a period longer than one
year, or for the sale of real property or of an interest therein
c. A representation as to credit of a third person
d. d. A mutual promise to marry

16. This will cure the defect of an unenforceable contract


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

17. Sometimes referred to as condition precedent


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

18. Susan is indebted to Rex in the amount of P15,000.00 with Raymond


volunteered as guarantor. Rex assigns the credit to Darryl, who in
turn assigns the credit to Raymond, Which is correct?
a. The obligation of Susan is extinguished
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b. The assignment to Raymond did not affect the


obligations of Raymond as guarantor
c. Raymond becomes the new creditor of Susan
d. The assignment by Rex to Darryl extinguished the
guaranty

19. X sold his car to Y for P50, 000. No date was fixed for the
performance of the obligation of the seller and the buyer. The
obligation of X is:
a. To deliver the car after Y pays X the P 50, 000.
b. To deliver the car immediately because the sale is a
perfected contract.
c. To deliver the car only after Y writes to X demanding the
delivery of the car.
d. To rescind the contract because there is no time

20. Unless there is stipulation to the contrary, the expenses for the
execution or registration of the sale shall be borne by:
a. The vendee
b. The Vendee and the Vendor
c. The Vendor
d. The agent or broker

21. When there is concurrence of the offer and acceptance, there is;
a. Payment
b. Acceptance
c. Revocation
d. Consent

22. In order that fraud may make a contract voidable:


a. It may be incidental but should have been employed by
both parties.
b. It should be serious and should not have been employed by
both contracting parties.
c. It should be serious and the parties must be in pari
delicto.
d. It may be incidental but both parties should not be in
pari delicto.

23. This written acknowledgment of an interest of a stockholder in


the corporation
a. Proxy
b. Share of Stock
c. Capital Stock
d. Certificate of Stock

24. A contract of sale is not a (an)


a. Onerous contract c. Commutative contract
b. Accessory contract d. Bilateral contract

25. One of the following is not correct


a. Things subject to a resolutory condition may be the
object of the contract of sale
b. Things having a potential existence may be the object
of the contract of sale
c. A thing is generic when it is particularly designated
or physically segregated from all others of the same class
d. The sole owner of a thing may sell an undivided
interest therein

26. Susan needs a size 10 of model CPA#2 of Bulldog Shoes regularly


available to the public for her boyfriend Raymond, but the same is
out of stock so she placed an order for one. On the other hand,
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Raymond placed an order for sized No.6.5, colored fuchsia,


(something not ordinarily made by the company) to be given to the
apple and orange of his eyes- Susan. Which is correct?
a. Both are contracts of sale
b. Both are contracts for a piece of work
c. First is a contract for a piece of work, second is a
contract of sale
d. First is a contract of sale, second is a contract for
a piece of work

27. Delivery by merely pointing to the object of sale if it cannot be


delivered to the vendee at the time of the sale is
a. Traditio longa manu
b.. Tradition brevi manu d. Traditio symbolica
c. Tradition constitutum possessorium
d. Traditio symbolica

28. A sold to B orally a parcel of land for P200,000. Delivery was


made of the land. The payment of the price was to be made three
months later. At the end of the three month period
a. B may refuse to pay claiming in his defense the
Statute of Frauds
b. B may return the parcel of land to A
c. B may refuse to pay on the ground that there is no
written contract to support the sale
d. A can collect from B because the contract has already
been executed

29. The inadequacy of cause, like an insufficient price for a thing


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

30. The process of intentionally deceiving others by producing the


appearance of a contract that they really does not exist
a. Absolute simulation c. Fraud
b. Relative simulation d. Misrepresentation

31. In order that fraud may make a contract voidable:


a. It may be incidental but both parties should not be in
pari delicto
b. It should be serious and should have not been employed
by both contracting parties.
c. It may be serious and the parties must be in pari
delict
d. It may be incidental but should have been employed by
both parties

32. P appointed A as his agent. For more than 5 years, A transacted


business with the general public including X. On the sixth year of
the agency, P revoked the authority of A as his agent by giving a
notice of revocation to A and causing the publication of the
revocation in the Manila Bulletin on the same day that P revoked A’s
authority. Three months thereafter, X who was not aware of the
revocation of A’s authority, in the course of his usual business
transactions with A as P’s agent, sold and delivered goods to A. X
now sues P for the price of the goods.
a. P is liable to X because X did not read the publication
of the revocation of A’s power.
b. P is not liable because the revocation as published is
binding upon any person including X, although X has not read the
publication.
c. P is liable to X because P should have specially informed
X that A’s authority had been revoked.
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d. P is liable because A was a customer of long standing and


must be given the benefit of the doubt.

33. A contract of agency has the following characteristics except


that it is not:
a. A consensual contract
b. An accessory contract
c. A nominate contract
d. A bilateral contract

34. A contract whereby a person binds himself to render some service


or to do something in representation or in behalf of another, with
the consent and authority of the later is known as:
a. Contract of lease of services
b. Contract of agency
c. Contract for a piece of work
d. Contract to sell
35. This special form of payment is conveyance of the ownership of
the thing as accepted equivalent of performance.
a. Assignment of property or cession en pago
b. Application of payment
c. Dacion in payment or dacion en pago
d. Tender of payment and consignation

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