TEST BANK - LAW 1-Diaz.doc

Law 1 (Diaz) 1. A is obliged to deliver a Rolex watch to B on December 1, 2009. A. Before December 1, 2009, A has to take care of the Seiko watch with the diligence of a good father of the family. B. In case of loss of the Seiko watch by negligence of A, A is liable in damages. C. A is not required to exercise the diligence of a good father of a family. D. The obligation of A to B is not valid. 2. A is obliged to deliver to B one of his three (3) cars. A. The obligation is not valid because the object is not determined. B. The obligation is valid because the object is determinable. C. The obligation is valid. B can choose which one of the 3 cars. D. The obligation is valid because there is consent between A and B. 3. In an obligation to deliver a generic thing: A. The debtor is not liable for fraud or delay or negligence in the performance of the obligation. B. The debtor can choose which thing pertaining to the class to deliver. C. The creditor has the right of choice. D. Loss by fortuitous event extinguishes the obligation. 4. Statement 1. Accessions are necessary to the principal thing. Statement 2. Accessories are not necessary to the principal thing but both must go together. A. B. C. D.

True; False False; True Both statements are true. Both statements are false.

5. A binds himself to pay B P1,000 on December 10, 2011. A. If December 10 has elapsed but A has not paid B, A is in delay. B. A shall be liable to pay B P1,000 plus legal interests. C. If the P1,000 is lost by fortuitous event the obligation is extinguished. D. A is not in delay unless B has made a demand. 6. A agreed to B not to construct a fence between their 2 houses. A. The obligation is not valid. B. This is a negative real obligation. C. This is valid but cannot be enforced. D. A will never be in delay. 7. When a debtor is in delay: A. He is liable for damages. B. He is liable even for fortuitous event. C. All of the above. D. None of the above. 8. A source of liability is: A. Dolo causante B. Pare delicto C. Dolo incidente D. Culpa aquiliana 9. Statement 1. Waiver of future fraud is null and void. Statement 2. Waiver of future negligence is valid. A.

Both statements are false.

B. C. D.

Both statements are true. True; False False; True

10. Statement 1. If the law or contract does not state the diligence which is to be observed in the performance of the obligation, neither party is liable for negligence. Statement 2. If a party is negligent and at the same time in bad faith, he shall be liable for damages by reason of fraud. A. B. C. D.

True; False False; True Both statements are true. Both statements are false.

11. A. B. C. D.

This is an obligation with a period. This is not valid because the performance depends solely upon the will of B. This is a pure obligation. This is an obligation with a potestative period.

12. A binds himself to give B, P1,000 if B sells A’s car and P2,000 if B will kill C. A. The obligation is null and void. B. The obligation is partly valid and partly null and void. C. The obligation is null and void because the first condition is potestative and the second is contrary to law. D. The obligation is partly subject to a period and partly conditional. 13. A. B. C. D.

Statement 1. A potesstative period does not make an obligation void. Statement 2. A potestative condition does not necessarily make an obligation void. Both statements are true. Both statements are false. True; False False; True

14. A owes B P10,000 to be paid after one year. As security A mortgages his car in favor of B. If before due date the car is lost by fortuitous event: A. A does not lose the benefit of the period because no one shall be liable for fortuitous event. B. A does not lose the benefit of the period if he gives another security equally satisfactory. C. A does not lose the benefit of the period because it was not stipulated. D. A does not lose the benefit of the period because he is not in delay. 15. In a reciprocal obligation, the remedy of the injured party is: A. Alternative C. All of the above B. Cumulative D. None of the above. 16. In case both parties have committed a breach of the obligation: A. The second infractor may choose between rescission or fulfillment. B. The first infractor is more is more liable than the second. C. Each party must bear his own damage. D. The liability of the first infractor shall be equitably tempered by the courts. 17. Statement 1. A period cannot prevent the fulfillment of an obligation. Statement 2. A condition may prevent the fulfillment of the obligation.

A. B. C. D.

True; False False; True Both statements are true. Both statements are false.

18. Statement 1. If the obligation does not fix a period, the court shall fix the period. Statement 2. Once a period is fixed by the courts, the parties cannot change it. A. True; False B. False; True C. Both statements are false. D. Both statements are true. 19. Statement 1. In an alternative obligation either party may choose as to who has the right of choice. Statement 2. If it is the creditor who has the right of choice, he loses his choice if all the prestations are alternatively lost by fault of the debtor. A. True; False B. False; True C. Both statements are true. D. Both statements are false. 20. A and B by their joint act of negligence caused damage to X in the sum of P10,000. A. The obligation is joint because A and B acted jointly. B. The obligation is joint because there is plurality of debtors. C. The obligation is solidary because the law so provides. D. The obligation is solidary because either A or B is liable for the full amount. Source: Exercises in Bus. Law (Obligations and Contracts – by Diaz) Source: CPA Exams (Diaz) 1. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once. This refers to: A. Divisible and Indivisible Obligations B. Joint and Solidary Obligtions C. Obligations with a Period. D. Pure and conditional Obligations No1(May1985) 2. This person is liable for the loss of the subject matter by fortuitous event. A. Creditor C. Both A and B B. Debtor D. None of them. No2(Nov1985) 3. A is obliged to give B his Mitsubishi, 4-door sedan Lancer with plate number ABC 123 on September 30, 2009. On October 10, 2009, A did not yet deliver the car which was totally destroyed by an earthquake on such date. Is A still liable? A. No, the obligation is extinguished. The specific thing was lost due to fortuitous event and no demand to deliver was made by B. B. Yes, A is in legal delay. B can claim damages. C. No, even A is already in default and can plead impossibility of performance. D. Yes, B can instead demand for another car of equivalent value from A. No2(Oct1989)

4. In a sale, the buyer is entitled and has the right to the fruit of the thing sold from the time: A. The obligation to deliver the thing sold arises. B. The sale is perfected. C. The thing sold is delivered. D. The fruit of the thing sold is delivered. No1(may1990) 5. The following is considered fraud or fraudulent. A. Failure to disclose facts when there is duty to reveal them. B. The usual exaggeration in trade, when the other party had the opportunity to know the facts. C. Misrepresentation made not in bad faith. D. “Caveat Emptor” of let the buyer beware. 6. One is not a requisite in order that obligation shall be extinguished by loss or destruction of the thing due: A. When the thing is lost without the fault of the debtor. B. When the thing lost is generic. C. When the thing is lost before the debtor has incurred in delay. D. When the thing lost is specific. No14oct1994 7. The obligation is demandable on the date of the obligation and shall continue in force up to the arrival of the day certain. A. Resolutory period C. Indefinite period B. Suspensive period D. Legal period No1may1995

Contracts 1. This kind of defective contract refers to that contract which is validly agreed upon because all the essential elements exists, but Courts can nullify it when there is damage or prejudice to one of the parties to a third person. Its enforcement would cause injustice by reason of some external facts. A. Voidable Contract C. Rescissible Contract B. Void or inexistent Contract D. Unenforceable Contract 2. These persons are bound by contracts: A. Contracting parties B. Heirs

C. D.

Assigns All of the them

3. Essential requisites of a contract: A. Consent B. Cause

C. D.

Subject All of these.

4. When the object of the contract is outside the commerce of man, the contract is: A. Remissible C. Unenforceable B. Voidable D. Void 5. It is a contract wherein a person binds himself to a creditor to fulfill the obligation of the principal debtor in case the latter should fail to do so: A. Guaranty C. Pacto Comisorio B. Suretyship D. None of the three

6. Contracts are effective and binding only between the parties, their assigns and their heirs. Three of the following enumeration are exceptions as provided by law which does not belong to the exception? A. Where there is stipulation in favor of a third party. B. Where one of the parties to the contract dies and thereafter a suit is filed on the basis of the contact. C. Where the obligations arising from contract are not transmissible by their nature. D. Where the obligations arising from the contract are not transmissible by stipulation or by provision of law. 7. A solidary obligation is one in which each of the debtors is liable for the entire obligation or debt, and each of the creditors is entitled to the entire credit. Obligations shall also be considered solidary under the three following exceptions. Which does not belong to the exception? A. When solidary is expressly stipulated in the obligation. B When the prestation is indivisible and there are two or more debtors and creditors. C. When the law expressly provides solidarity. D. When solidarity is required from the nature of the obligation. 8. It is a contract wherein a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter. A. Agency C. Contract of piece of work B. Contract of service D. None of the three 9. A and B who are both unemancipated minors entered into a contract. The contract entered into by and between them is: A. Rescissible C. Voidable B. Unenforceable D. Void 10. Which of the following contracts cannot be ratified? A. Those whose cause or object did not exist at the time of the transaction B. Unauthorized contracts C. Those where both parties are incapable of giving consent. D. Those that fail to comply with Statute of Frauds 11. The creditor shall have a right to indemnify for damages when, through the fault of the debtor, all the things which are alternatively the object of the obligation have been lost or compliance of the obligation has become impossible. The indemnity shall be fixed taking as a basis A. The value of the least expensive thing B. The value of the most expensive thing C. The value of the last thing which disappeared D. The value of the first thing which disappeared 12. Mr. Santos sold his car to Mr. Garcia for P150,000.00. No date is fixed by the parties for the performance of their respective obligations. The obligation of Mr. Santos is: A. To deliver the car immediately as there is a perfected contract B. To deliver the car upon the payment by Mr. Garcia of P50,000.00 C. To rescind the contract since there is no time fixed for the delivery and payment of the car. D. To deliver the car within a reasonable time after the demand of Mr. Garcia to deliver. 13. When the subject matter of a contract is lost through fortuitous event, who is liable? A. The debtors C. The creditors B. None of them D. Both creditor and debtor 14. The buyer of a thing has the right to the fruits of the thing: A. From the time the thing bought is delivered

B. C. D.

From the time the sale is perfected From the time the obligation to deliver the thing bought arises. From the time the fruits are delivered.

15. Three (3) of the following may be valid objects of a contract, except: A. All that are within the commerce of man. B. All services which are not contrary to law. C. Impossible things or services. D. All rights that are transmissible. 16. A contract executed by two (2) parties and one (1) of the parties in not capable of giving consent is: A. Voidable C. Void B. Rescissible D. Unenforceable 17. Three (3) of the following contracts are void. Which one is valid? A. Oral contract of partnership of three (3) partners and capital contribution is more than P3,000.00 in cash. B. Written contract contemplating impossible services. C. Oral contract of partnership where real estate is contributed as capital. D. Agent’s authority to sell property given orally. 18. These are the basic principles or characteristics of a contract. Which is exception? A. Freedom or liberty to stipulate B. Obligatory force and compliance in good faith C. Binding on third parties D. Perfected by mere consent 19. When the period is “on or before a date”, the debtor has the benefit of the period. The benefit is lost and the obligation becomes demandable when: A. The debtor attempts to abscond B. After contracting the obligation, the creditor suspects the debtor to becoming insolvent C. The guarantee given by the creditor is not acceptable to the creditor D. Demand by the creditor could be useless 20. Simulation of a contract may e absolute or relative. It is relative when: A. The parties do not intend to be bound at all B. The contract is void C. The parties conceal their true agreement D. Answer not given 21. The proper remedy is annulment of contract and not reformation when: A. Mistake, fraud, inequitable conduct, or accident has prevented a meeting of minds of the parties. B. A mutual mistake of the parties causes the failure of the instrument to disclose their real agreement. C. One party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed the fact from former. D. Answer not given. 22. The action to annul a voidable contract, such as a contract where one of the parties is incapable of giving consent to the contract, is extinguished by: A. Novation C. Ratification B. Rescission D. Answer not given 23. A contract or receipt for the transport of goods and their delivery to the person named therein to order or bearer is a:

A. B.

Warehouse receipts Dock warrant

C. D.

Bill of lading Answer not given

24. Cecilio kidnapped and tortured Eduardo for refusing to sell his (Eduardo’s) land to Cecilio. Eduardo who could no longer bear the physical pains inflicted upon him signed a document of sale in favor of Cecilio. This sale is A. Void C. Valid B. Voidable D. Answer not given 25. Choose the contracts which are voidable. A. Those undertaken in fraud of creditors when the latter cannot in any manner collect the claims due them. B. Those where the consent is vitiated by mistake, violence, intimidation, undue influence of fraud. C. Those whose subject is outside the commerce of man. D. Those where both parties are incapable of giving consent to a contract. 26. A contract is in the stage of conception when: A. There is meeting of the minds B. Negotiations is in progress. C. The parties come to the agreement D. The contract is perfected. 27. In an obligation where only one (1) prestation has been agreed upon, but to extinguish the obligation the debtor is allowed and does render another substitute, the obligation is: A. Facultative obligation C. Alternative obligation B. Simple obligation D. Conjoint obligation 28. Mr. Gamboa owes Mr. Evangelista P100,000. Gamboa knows that on maturity date, he will not be able to pay Evangelista, and in order to prevent attachment of his property by Evangelista, Gamboa, before maturity of his debt, executes a contract pretending to sell to Mr. Santiago his property. Which of the following statements is correct/ A. The contract is not valid for lack of consideration B. The contract is binding between Gamboa and Santiago C. The contract being simulated and executed to defraud Evangelista is void. D. Mr. Evangelista can seek rescission of the fictitious contract. 29. A owes solidary creditors XYZ P10,000. There is remission of the debts when: A. X borrows P10,000 from A. B. X waives the whole obligation of P10,000 to A. C. Z makes a will giving the P10,000 debt to A as legacy. D. Y tells A that instead of paying P10,000, A shall deliver a ring to Y. Exercises 30. A is obliged to deliver to B one of his three (3) cars. A. The obligation is not valid because the object is not determined. B. The obligation is valid because the object is determinable. C. The obligation is valid. B can choose which one of the three cars. D. The obligation is valid because there is consent between A and B. 31. Statement 1. Accessions are necessary to the principal thing. Statement 2. Accessories are not necessary to the principal thing but both must go together. A. B.

True; False False; True

C. D.

Both statements are true Both statements are false

32. When a debtor is in delay: A. He is liable for damages. B. He is liable even for fortuitous event. C. All of the above. D. None of the above. 33. Statement 1. Waiver of future fraud is null and void. Statement 2. Waiver of future negligence is valid. A. B.

Both statements are false Both statements are true

C. D.

True; False False; True

34. Statement 1. If the law or contract does not state the diligence which is to be observed in the performance of the obligation, neither party is liable for negligence. Statement 2. If a party is negligent and at the same time in bad faith, he shall be liable for damages by reason of fraud. A. B.

True; False False; True

C. D.

Both statements are true Both statements are false

35. A promises to pay B P1,000 upon demand of B. A. This is an obligation with a period. B. This is not valid because the performance depends solely upon the will of B. C. This is a pure obligation. D. This is an obligation with a potestative period. 36. A binds himself to give B, P1,000 if B sells A’s car and P2,000 if B will kill C. A. The obligation is null and void. B. The obligation is partly valid and partly null and void. C. The obligation is null and void because the first condition is potestative and the second is contrary to law. D. The obligation is partly subject to a period and partly conditional. 37. A is obliged to deliver his TV set to B on December 1, 2010. Subsequently, A and B agreed that A shall deliver his radio as a substitute. A. The obligation is facultative. B. This is real novation. C. The obligation is extinguished by payment. D. If the radio is lost by fortuitous event, the obligation is extinguished. 38. In obligations with a penal clause, the creditor can recover damages, and interest apart from the penal clause: A. When the debtor refuses to pay the obligation. B. When the debtor is guilty of fraud. C. All of the above. D. None of the above. 39. Statement 1. The nullity of the penal clause does not carry with it the nullity of the principal obligation. Statement 2. The nullity of the principal obligation carries with it the nullity of the penal clause. A. B.

True; False False; True

C. D.

Both statements are true Both statements are false

40. The obligor is liable for fortuitous event except one. Which is the exception? A. The law so provides.

B. C. D.

The obligation to deliver a generic thing. The obligation so provides. The obligation to deliver a determinate thing.

41. Which statements is correct? A. Condonation is generally gratuitous. B. Condonation is gratiuitous. C. Condonation is onerous. D. Condonation is essentially gratuitous. 42. The following are real contracts. Which is not? A. Contract of donation C. Contract of guaranty B. Contract of deposit D. Contract of loan 43. The following cannot give consent to a contract. Which is the exception? A. Un-emancipated minors B Deaf-mute who does not know how to write. C. Insane person during his lucid interval. D. Person under civil interdiction. 44. Choose the contract which is voidable: A. Those undertaken in fraud of creditors where the latter cannot in any manner collect his credit. B. Those where consent of one contracting party was vitiated by violence or mistake. C. Those whose object is outside the commerce of man. D. Those where both contracting parties cannot give consent. 45. An absolutely simulated contract is : A. Void B. Voidable

C. D.

Unenforceable Rescissible

46. An insane entered into contract with a minor. A. The contract is unenforceable. B. The contract is voidable C. The contract is rescissible D. The contract is void. 47. Thru some mistake on the part of a bank personnel, A was given One Million Pesos instead of One Thousand Pesos. This situation will be governed by the provisions on A. Contracts C. Quasi-delicts B. Quasi-contracts D. Law

1. Requisites of a valid object or subject matter: A. Must be determinate or definite as to its kind B. Must be possible. C. Both A and B D. None of them 2. Requisites of a valid cause: A. It must be lawful B. It must be true

C. D.

It must be real All of them

3. 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 the parties must be in part delicto.

C. D.

It should be serious and should not have been employed by both contracting parties. It may be incidental but both parties should not be in pari delicto

4. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-debtors. A. If such payment was made before the obligation is due. B. If such payment was made after obligation has prescribed or become illegal C. If such payment was made in compliance with the demand made to him by all the creditors D. If such payment was made after obligation has become due and demandable and notice of payment was made only to him. 5. In this case, advance payment by the debtor is recoverable. A. If the advance payment is only of interest due. B. If the creditor demanded for the advance payment and the debtor knows it was not yet due. C. If the advance payment is in reciprocity to the advance payment of the other party. D. If the debtor was unaware of the period. 6. A obliges himself to pay X P100,000 in 30 days plus a penalty of P20,000 if A fails to to pay the obligation in due time. A failed to pay the obligation in 30 days. X can demand from A A. The principal of P100,000 plus P20,000 penalty B. The principal of P100,000 plus P20,000 penalty plus legal interest. C. The principal of P100,000 plus legal interest D. The principal of P100,000 plus P20,000 penalty, plus legal interest, plus damage. 7. A owes X P50,000 payable on or before June 30, 2010. S who is not a party to the contract and without the consent and against the will of A paid X the P50,000 on March 1, 2010 when the prevailing rate of interest was 12% per annum. A. S can ask reimbursement from A in the amount of p50,000 plus 12% interest from March 1 to June 30, 2010. B. S can ask reimbursement from A in the amount of P50,000 C. S cannot ask reimbursement from A because the payment by S is without the consent and against the will of A. D. S can ask refund from X because the payment by S was against the will of A. H de Leon 1. In order that an obligation may be extinguished by the loss of the thing, the following requisites must be present: I. The obligation to deliver a specific or determinate thing; II. The loss of the thing occurs without the fault of the debtor; III. The debtor is not guilty of delay A. I and II only C. I, II and III B. II and III only D. I and III only 2. There are cases, when the loss of the specific thing even in the absence of fault and delay will not exempt the debtor from liability. They are: I when the law so provides II. when the stipulation so provides III. when the nature of the obligation requires the assumption of risk IV. when the obligation to deliver a specific thing arises from a crime. A. B.

I, II, and III only I, II and IV only

C. D.

I, II, III and IV I, III and IV

3. In any of the following cases, consignation is deemed properly made: I. When the creditor accepts the thing or sum deposited, without objection, as payment of the obligation. II. When the creditor questions the validity of the consignation, and the court, after hearing, declares that it has been properly made. III. When the creditor neither accepts nor questions the validity of the consignation, and the court after hearing, orders the cancellation of the obligation. A. I and II only C. I, II and III B. II and III only D. I and III only 4. The following are requirements for valid tender of payment: I. Tender of payment must comply with the rules on payment. II. It must be unconditional and for the whole amount. III. It must be actually made. A. I and II only C. II and III only B. I and III only D. I , II and III 5. The following are requisites of payment by cession: I. There must be two or more creditors. II. The debtor must be (partially) insolvent III. The cession must be accepted by the creditors. A. I, II and III C. II and III only B. I and II only D. I and III only 6. Article 1251 gives the rules regarding the place for the payment of an obligation without prejudice to venue under the Rules of Court. I. If there is a stipulation, the payment shall be made in the place designated. II If there is a stipulation and the thing to be delivered is specific, the payment shall be made at the place where the thing was, at the perfection of the contract. III. If there is no stipulation and the thing to be delivered is generic, the place of payment shall be the domicile of the debtor. A. I, II and III C. II and III only B. I and II only D. I and III only 7. The conveyance of ownership of a thing as an accepted equivalent of performance. A. Dation en pago C. Application of payment B. Payment by cession D. Consignation 8. The designation of the debt to which should be applied the payment made by a debtor who has various debts of the same kind in favor of one and the same creditor. A. Dation en pago C. Application of payment B. Payment by cession D. Consignation 9. The assignment or abandonment of all the properties of the debtor for the benefit of his creditors in order that the latter may sell the same and apply the proceeds therof to the satisfaction of their credits. A. Dation en pago C. Application of payment B. Payment by cession D. Consignation 10. Is the act of depositing the thing or amount due with the proper court when the creditor does not desire or cannot receive it, after complying with the formalities required by law. A. Dation en pago C. Application of payment B. Payment by cession D. Consignation 11. The creditor, in addition to the penalty, may recover damages and interests: I. When so stipulated by the parties II. When the obligor refuses to pay the penalty, in which case the creditor may recover legal

interest thereon. When the obligor is guilty of fraud in the fulfillment of the obligation, in which case the creditor may recover damages caused by such fraud. I and II only C. I, II and III II and III only D. I and III only

III. A. B.

12. I. As a general rule, in an obligation with a penal clause, the penalty takes the place of the indemnity for damages and the payment of interests in case of non-compliance. II. Proof of actual damages suffered by the creditor is necessary in order that the penalty may be enforced. A. True; True C. True; False B. False; True D. False; False 13. I. II. A. B.

The nullity of the penal clause does not carry with it that of the principal obligation. The nullity of the principal obligation carries with it that of the penal clause. True; True C. True; False False; True D. False; False

14. I. The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation, unless there is a stipulation to the contrary. II. Whoever pays for another may demand from the debtor what he has paid, except that if he paid without the knowledge or against the will of the debtor, he can recover only insofar as the payment has been beneficial to the debtor. A. True; True C. True; False B. False; True D. False; False 15. I. Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires the debtor’s consent. But the payment is in any case valid as to the creditor who has accepted it. II. Whoever pays on behalf of the debtor without the knowledge or against the will of the latter can compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty, or penalty. A. True; True C. True; False B. False; True D. False; False 16. I. Payment shall be made to the person in whose favor the obligation has been constituted, or his successor in interest, or any person authorized to receive it. II. Payment in good faith to any person in possession of the credit shall not release the debtor. A. True; True C. True; False B. False; True D. False; False 17. In order that an obligation may be extinguished by the loss of the thing, the following requisites must be present: I. The obligation is to deliver a specific or determinate thing. II. The loss of the thing occurs without the fault of the debtor III. The debtor is not guilty of delay. IV. The law so provides. A. I, II and III only C. I, II, III, IV B. II, III and IV only D. I, III and IV only 18. I.

A. B.

Condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly. II. One and the other kind shall be subject to the rules which govern inofficious donations. Express condonation shall, furthermore, comply with the forms of donations. True; True C. True; False False; True D. False; False

19. I. The renunciation of the principal debt shall not extinguish the accessory obligations; but the waiver of the latter shall leave the former in force. II. It is presumed that the accessory obligation of pledge has been remitted when the thing pledge has been remitted when the thing pledged, after its delivery to the creditor, is found in the possession of the debtor, or of a third person who owns the thing. A. True; True C. True; False B. False; True D. False; False 20. For a valid confusion or merger to take place, it is necessary that: I. It must take place between the principal debtor and creditor II. It must be complete. A. True; True C. True; False B. False; True D. False; False 21. Obligations may be modified by: I. Changing their object or principal conditions. II. Substituting the person of the debtor III. Subrogating a third person in the rights of the creditor A. True; True; True C. True; False; True B. False; True; True D. False; False; True 22. It is presumed that there is legal subrogation: I. When the creditor pays another creditor who is preferred, even without the debtor’s knowledge. II. When a third person, not interested in the obligation, pays with the express or tacit approval of the debtor. III. When, even without the knowledge of the debtor, a person interested in the fulfillment of the obligation pays, without prejudice to the effects of confusion as to the latter’s share. A. B.

I and II only I, II and IV only

C. D.

I, II and III I, III and IV only

23. I. Contracts are perfected by mere consent, and from the moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be keeping with good faith, usage and law. II. Real contracts, such as deposit, pledge and commodatum, are not perfected until the delivery of the object of the obligation. A. True; True C. True; False B. False; True D. False; False 24. I. No one may contract in the name of another without being authorized by the latter, or unless he has by law a right to represent him. II. A contract entered into in the name of another by one who has no authority or legal representation, or who has acted beyond his powers, shall be enforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it has been executed, before it is revoked by the other contracting party. A. True; True C. True; False B. False; True D. False; False 25. There is no contract unless the following requisites concur: I. Consent of the contracting parties II. Object certain which is the subject matter of the contract III. Cause of the obligation which is established. IV Delivery A. I and II only C. I, II and III

B. I, II and IV only D. I, III and IV only 26. I. In order that fraud may make a contract voidable, it should be serious and should not have been employed by both contracting parties. II. Incidental fraud only obliges the person employing it to pay damages and interest. A. True; True C. True; False B. False; True D. False; False 27. I. All things which are not outside the commerce of men, excluding future things, may be the object of a contract. II. All rights which are not intransmissible may also be the object of contracts. III. All services which are not contrary to law, morals, good customs, public order, or public policy may likewise be the object of a contract. A. True; True; True C. True; False; True B. False; True; True D. False; False; True 28. In order that service may be the object of a contract, the following requisites must concur: I. The service must be within the commerce of men. II. It must not be impossible, physically or legally. III. It must be determinate or capable of being made determinate. A. I and II only C. I, II and III B. I and III only D. II and III only 29. I. Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless the debtor proves the contrary. II. Except in cases specified by law, lesion or inadequacy of cause shall not invalidate a contract, unless there has been fraud, mistake or undue influence. A. True; True C. True; False B. False; True D. False; False 30. Classifications of contracts according to form are I. Informal or common contract or that which may be entered into in whatever form provided all the essential requisites for their validity are present. II. Formal or solemn contract or that which is required by law for its efficacy to be in a certain specified form. A. True; True C. True; False B. False; True D. False; False 31. Sale; lease of thing; partnership are examples of what classification of contract according to cause: A. Onerous C. Gratuitous B. Remuneratory D. Bilateral 32. Commodatum; pure donation; guaranty or suretyship unless there is a stipulation to the contrary; mortgage given by a third person to secure an obligation of a debtor unless a consideration is paid for such mortgage are examples of what classification of contract according to cause: A. Onerous C. Gratuitous B. Remuneratory D. Bilateral 33.