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This set of Philippines Civil Law Society Multiple Choice Questions & Answers (MCQs) focuses on Philippines Civil Law Society Set 6
Q1 | Which of the following contracts is not unenforceable?
- An oral agreement to pay for the debt, default or miscarriage of another.
- An oral sale of land.
- An oral sale of movables with a value of P500.
- An oral agreement to lend P50,000.
Q2 | No. 1 – A contract of sale is a mode of acquiring ownership. No. 2 – Every delivery transfers ownership.
- Both are false.
- Both are true.
- No. 1 is true; No. 2 is false.
- No. 1 is false; No. 2 is true.
Q3 | Mr. X pledged his gold watch to Mr. Y as security for a loan. The loan was not paid.
- Mr. Y may appropriate the ring as his own if there is a stipulation to that effect.
- Mr. Y must sell the ring to someone else even in a private sale.
- Mr. Y may recover the deficiency from Mr. X if after the auction sale, a deficiency exists.
- Mr. Y cannot recover the deficiency after the auction sale.
Q4 | The benefit of “exclusion” is available in a contract of
- guarantee
- suretyship
- pledge
- antichresis
Q5 | 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
- void
- voidable but the contract may be reformed
- valid but the instrument may be reformed
- valid but the contract may be reformed
Q6 | 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?
- If the dog died on April 30 without anyone’s fault, Mr. X shall be liable to Mr. Y by reason of delay.
- Mr Y shall bear the loss because of res perit domino.
- Mr. Y shall bear the loss because of genus nunquan perit.
- Mr X shall bear the loss because of genus nunquan perit.
Q7 | 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.
- Both are true.
- Both are false.
- No. 1 is false; No. 2 is true.
- No. 1 is true; No. 2 is false.
Q8 | 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.
- Both are false.
- Both are true.
- No. 1 is true; No. 2 is false.
- No. 1 is false; No. 2 is true.
Q9 | .Mr. X lost heavily in a private gambling with Mr. Y. He still owes Mr. Y P250,000 representing losses. Which is not true?
- The wife of Mr. X may file a suit to recover the losses if Mr. X refuses to file the suit.
- Mr. Y has the obligation to return the losses of Mr. X.
- Mr. X is estopped from recovering his losses.
- Mr. Y cannot collect the unpaid losses of Mr. X.
Q10 | 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
- void because of the absence of consent from the owner, Mr. Y.
- valid because all of the essential requisites of a contract are present.
- unenforceable because Mr. X had no authority but he sold the car in the name of Mr. Y, the owner.
- rescissible because the contract caused lesion to Mr. Z.
Q11 | 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?
- As long as the mortgage exists, Mr. MO has no right to sell his property to anyone.
- Mr. MO may sell the property mortgaged with the consent of Mr. ME.
- A violation of the “right of first refusal clause” will make the contract entered into by Mr. MO with anyone, void abs initio.
- A violation of the ‘right of first refusal clause” will make the contract entered into by Mr. ME rescissible
Q12 | Which of the following contracts are void?
- An oral sale of a parcel of land.
- A sale of land by an agent in a public instrument where his authority from the principal is oral.
- A donation of a wrist watch worth P4,500.
- A relatively simulated contract.
Q13 | Which of the following expresses a correct principle of law?
- Failure to disclose facts when there is a duty to reveal them, does not constitute fraud.
- Violence or intimidation does not render a contract annullable if employed not by a contracting party but by a third person.
- A threat to enforce one’s claim through competent authority, if the claim is legal or just, does not vitiate consent.
- Simulation of a contract always results in a void contract.
Q14 | .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.
- 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.
- 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.
- The contract between the parties is rescissible.
- The contract between the parties is subject to ratification by the parties.
Q15 | Which of the contracts below are rescissible?
- 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.
- Those entered into by guardians in the above when the lesion suffered is one fourth of the value of the property.
- Those undertaken in fraud of creditors even if the latter has other means to collect the debt.
- Those where the contract is absolutely simulated.
Q16 | Which of the following reflects a correct legal principle?
- 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.
- 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.
- If the right to repurchase is not exercised within the period agreed upon, a judicial order is necessary to consolidate ownership on the buyer.
- A contract of sale is not a mode of acquiring ownership.
Q17 | 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.
- Ownership of the land was consolidated on Mr. by virtue of the failure to redeem by Mr. S.
- Ownership of the land will be consolidated only upon the registration of the sale with the registry of deeds.
- Ownership of the land will be consolidated only upon a judicial order.
- Ownership will be consolidated only with the consent of Mr. S.
Q18 | 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.
- The contract gives rise to an action for rescission.
- The contract gives rise to an action for annulment.
- The contract is a sale.
- The contract is presumed to be an equitable mortgage.
Q19 | 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 and B only
- A, B and C
- A, B and C and C can recover for reimbursement from A and B
- No reimbursement may be recovered by C.
Q20 | 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:
- D is not liable to E for this obligation and his P8,000 contribution shall remain with the partnership
- 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.
- 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 will be liable only if he knew of the liability of P80,000 at the time he joined the partnership.
Q21 | 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?
- He may occupy and use the land as a buyer in good faith.
- He cannot compel Mr. Ayco to return the payment because the contract is unenforceable.
- He may compel Mr. Ayco to execute the Deed of Sale because the contract is val
Q22 | 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?
- No, because Bernardo did not signify his acceptance of the offer of P500,000
- Yes, because the period of 2 months has not yet expired.
- Yes, because Andrea is already estopped by her signed letter.
- Yes, because there was actual meeting of minds of the parties.
Q23 | 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:
- Institute an action for the annulment of the sale to Carlos.
- Institute an action for the recovery of the land.
- Institute an action for damages against Antonio.
- Institute an action for a declaration of nullity of the sale to Carlos.
Q24 | 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.
- The BIR may not levy upon the land because the sale is valid.
- The BIR, without having the sale annulled may levy upon the land of (Mr.Reyes pursuant to the Tax Code.
- The BIR should first have the sale annulled before it may levy upon the land pursuant.
- The BIR should first have the sale rescinded for lesion to the government.
Q25 | 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?
- an definite offer made through an agent
- business advertisement of things for sale
- advertisements for bidders
- a declaration of an intent to sell.