Philippines Civil Law Society Set 7 MCQs

Q1 | 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,

Upon delivery of the goods.

Upon expiration of seven (7) days.

Upon acceptance by the buyer of the offer of the seller.

Upon perfection of the contract.

Q2 | 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.

The pawnshop can recover the deficiency of P1, 000 from Ben.

The pawnshop cannot recover the P1, 000 unless there is a stipulation.

The pawnshop can recover the P1, 000 even without a stipulation.

The pawnshop cannot recover the P1, 000 even if there is a stipulation.

Q3 | 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. Y has no right to foreclose the mortgage because the house and lot are not chattels.

Mr. Y has no right to foreclose the mortgage unless Mr. X consents to the foreclosure.

Mr. Y has no right to foreclose the mortgage because he can sue for collection.

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.

Q4 | 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.

Mr. C may collect from Mr. G because he guaranteed payment of the debt.

Mr. G may refuse to pay even if Mr. D is insolvent.

Mr. G may ask Mr. C to exhaust all the properties of the Mr. D first before collecting from Mr. G.

Mr. G may refuse to pay even if Mr. D has absconded.

Q5 | 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;

renders the contract of partnership void.

renders the contract of partnership unenforceable.

affects the liability of the partnership to third persons and the partnership has no legal personality.

does not affect the liability of the partnership to third persons and the partnership still has a legal personality.

Q6 | 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?

X, A and B pro rata.

X, A and B solidarily.

X, A, B and C pro rata.

X, A, B and C solidarily.

Q7 | 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.

There is a perfected contract.

There is a perfected contract only when they have orally confirmed their having received the letters written to each other.

There is no contract because the offers were not certain.

There is no contract because there was no acceptance.

Q8 | 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?

The winner cannot maintain an action to collect the P10,000.

Jose may recover P50,000 from the winner with legal interest from the time he paid the amount lost.

Jose may recover P50,000 from the winner but without legal interest.

If Jose refuses to recover from the winner, the spouse of Jose may institute the action to recover.

Q9 | For payment to extinguish the obligation:

The thing or service in which the obligation consists must be completely delivered or rendered.

Payment must not have been justifiably refused by the creditor.

Payment must be in legal tender.

All of the above.

Q10 | Which of the following is most likely incorrect?

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.

In the immediately preceding letter (a), Mr. D could recover as though there had been a delivery of 100 bottles.

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

Q11 | 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.

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.

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.

Same as letter “b” except that Third Person may not foreclose the mortgage on Debtor’s car, unless Creditor consents.

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.

Q12 | Which among the situations below states a correct principle of law?

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.

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.

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 owes C P20, 000. D pays B, brother of C. The payment is not valid even if it redounded to the benefit of C.

Q13 | 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.

There is no payment because the debt may only be discharged by the delivery of legal tender.

There is payment pursuant to a facultative obligation because of a substitution.

There is dation in payment or dacion en pago.

There is payment by cession.

Q14 | Mr. D owes Mr. Y P10, 000. On the due date, Mr. X offers a check in payment of the obligation.

The receipt of the check by Mr. Y extinguishes the obligation if the check is a certified one because it is as good as cash.

The receipt is not equivalent to automatic payment if the check is not a certified check.

Mr. Y has no reason to refuse the check if it’s fully funded as certified to by the bank.

Mr. Y cannot be compelled to accept the check.

Q15 | Where the debtor has various debts of the same kind in favor of the same creditor and on the due date the debtor does not have sufficient funds to cover all the debts, the debtor may avail of

tender of payment and consignation.

application of payment.

dation in payment.

cession in payment.

Q16 | When the characters of the creditor and debtor are merged in one and the same person, there is extinguishment of the obligation by,

confusion

compensation

novation

condonation or remission

Q17 | When there is a change in the object or principal conditions, an obligation is extinguished by

confusion

compensation

novation

condonation or remission

Q18 | It is that currency which the debtor can compel the creditor to accept in payment of all debts, public or private.

certified checks.

domestic money in any denomination.

legal treasury notes.

legal tender.

Q19 | The extinguishment of an obligation by the passage of time is

fulfillment of a resolutory condition.

prescription.

expiration.

annulment.

Q20 | Mr. Debtor is domiciled in Quezon City while Mr. Creditor is domiciled in Manila. Payment is to be made in

Quezon City, domicile of Mr. Debtor.

Manila, domicile of Mr. Creditor.

Makati City if so stipulat

Q21 | Mr. Debtor owes Mr. Creditor as follows: P10, 000 due February 5; P10, 000 due March 5 and P10, 000 due April 5, all during the current year. Mr. Debtor has only P10, 000 and cannot pay all his obligations. If Mr. Debtor decides to pay P10, 000, the amount shall apply:

To the debt chosen by Mr. Creditor.

To the debt chosen by Mr. Debtor.

To the debt due on February 5 being the oldest debt.

To the debt due on April 5 if it is an interesting obligation.

Q22 | Mr. Debtor owes fifteen (15) persons substantial amounts of money. His financial situation indicates that his liabilities for exceed his assets. If Mr. Debtor cedes or assigns his properties to his creditors,

The creditors acquire ownership of the properties assigned or ceded.

The creditors shall sell the properties assigned and when sold, the debt of Mr. Debtor is deemed paid regardless of whether or not the net proceeds are equal to or less than the amount of the indebtedness.

The creditors shall sell the properties assigned and when sold, the debt of Mr. Debtor shall only be released to the extent of the net proceeds of the sale.

The cession or assignment shall extinguish the obligation whether or not the creditors sell the properties assigned.

Q23 | Mr. Debtor owes Mr. Creditor P100, 000. On the due date, Mr. Debtor delivers a cashier’s check for the full amount. Mr. Creditor refuses to accept the check.

Debtor may make a consignation by depositing the amount due with any bank and in the name of Mr. Creditor.

Mr. Debtor may make a consignation by depositing the amount due at the disposal of judicial authorities before whom the tender of payment shall be proved in a proper case.

Mr. Debtor has no legal basis for making a consignation.

The creditor may be considered in mora accipiendi.

Q24 | As a general rule, consignation must be preceded by a valid tender of payment. Enumerated below however, are situations which allows a consignation without a prior tender of payment. Which is the exception?

When for any cause, the creditor refuses to give a receipt.

When the creditor is absent or unknown, or does not appear at the place of payment.

When two or more persons claim the same right to collect.

When the title to the obligation has been lost.

Q25 | Which among the following fails to state a correct legal principle?

The debtor in obligations to do shall be released when the prestation becomes legally or physically impossible without the fault of the obligor.

Whenever the thing is lost in the possession of the debtor, it shall be presumed that the loss was due to his fault, unless there is proof to the contrary.

An obligation which consists in the delivery of a determinate thing shall be extinguished in any event it should be lost or destroyed without the fault of the debtor.

Condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly.