1.

A meeting of minds between two persons whereby one binds himself, with respect to the other, to give something
or to render some service.
A. Obligation
B. Contract
C. Sales
D. Prestation

2. X is the suitor of D. Without D’s knowledge, X voluntarily paid D’s debt to C worth P100,000. Eventually, D did
not reciprocate X’s affections. X demanded reimbursement of the whole amount he paid C. It turns out that prior
to X’s payment, D already paid half of the loan. Which of the following is true?
A. X can still collect the whole amount of P100,000
B. X can only collect P50,000
C. The whole P100,000 will be treated as a donation
D. The P100,000 payment of X is void for being contrary to D’s will

3. Which of the following is a valid contract?

A. Contract of sale between the guardian and his ward concerning the property of the latter.
B. Contract of lease between the executors and administrators and the estate concerning the property of the
estate under administration.
C. Contract of loan between the principal and an agent, where the latter was empowered to borrow money.
D. None of the choices

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4. Which of the following is an example of a natural element of a contract?
A. Consent of the contracting parties

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B. Warranty against non-apparent encumbrances
C. Express warranty
D. Stipulation to pay interest
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5. D died and left behind an obligation to C amounting to P10,000,000. Ashamed of the amount of the obligation, X
and Y, the heirs of D, paid the P10,000,000. It turns out, however, that the only remaining assets of D that will be
inherited by X and Y had a value of P7,000,000. In this case,
A. X and Y cannot ask for the return of the excess P3,000,000 since there was voluntary performance.
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B. X and Y can ask for the return of the P10,000,000 since they are not the debtors to the obligation.
C. X and Y can be made liable for the entire P10,000,000 since obligations are generally transmissible.
D. X and Y can ask for the return of the P3,000,000 since at the time of payment they had no knowledge of the
value of their inheritance.
PA

6. This kind of obligation is based on equity and natural law and does not grant a right of action to enforce their
performance.
A. Civil obligations
B. Natural obligations
C

C. Moral obligations
D. Prescribed obligations

7. D is obliged to deliver to C a specific car. In this case, what are the concurrent obligations of such obligation?
EO

A. To take care of the thing with the diligence required by law or stipulation, or if none, with the diligence of a
good father of a family
B. To deliver the fruits at the obligation to deliver it arises
C. To deliver the accessions and accessories
D. All of the choices
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8. A contract whereby one party has prepared the form and the stipulations and the other party merely agrees to the
terms indicated therein or reject them in its entirety:
A. Auto-contract
B. Contract of adhesion
C. Accessory contract
D. Aleatory contract

9. A bought a plane ticket from B Co., under the terms of said contract of carriage, the liability of B Co. in case of lost
luggage should not exceed P1,000. A lost his luggage and accordingly asked B Co. for the total value of the luggage
lost. Which of the following is correct?
A. A can validly ask for the full value of the lost luggage which is the amount of actual loss.
B. A can only seek P1,000 as damages since this is the limit agreed to by him.
C. The P1,000 limit is void since it is contained in a contract of adhesion and A has no choice but to agree to the
same in order to avail of B Co.’s services.
D. None of the above.

10. The following are the elements of an obligation, except:

A. Active and Passive Subjects
B. Vinculum Juris
C. Prestation
D. Agreement
11. PLDT, a telephone company, is being compelled by the government to enter into an interconnection agreement
whereby the former would lend its facilities in order for the latter to establish its own telephone services company
for government offices. Which of the following is incorrect?
A. There can be no valid contract if PLDT does not give its consent
B. The government can still validly compel PLDT through the exercise of the power of eminent domain.
C. PLDT can validly refuse entering into a contract with the government.
D. PLDT cannot be compelled by any measure to provide interconnection services with the government.

12. This is otherwise known as the freedom or liberty to contract.

A. Consensuality of contracts
B. Autonomy of contracts
C. Mutuality of contracts
D. Relativity of contracts

13. A condition the happening of which would give rise to the obligation:
A. Suspensive Condition
B. Resolutory Condition
C. Positive Condition
D. Impossible Condition

14. As a rule, parties to a contract are free to stipulate terms and conditions thereof, provided they are not contrary to

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law. One such stipulation considered by law as void is when the creditor can appropriate the things given by way of
pledge or mortgage, which is otherwise known as:
A. Pactum commissorium

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B. Pactum leonina
C. Pactum de non aliendo
D. Nudum Pactum

15. Which of the following is considered a real contract?

A. Deposit
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B. Real Estate Mortgage
C. Antichresis
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D. Mutuum

16. The obligation reads: “I promise to pay C P10,000 when my means permit me to do so”. This is:
A. An obligation subject to a suspensive condition
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B. A pure obligation
C. An obligation subject to a suspensive period
D. A void obligation

17. D borrowed from C bank P1,000,000 with a 5% interest. The loan had a stipulation that the bank can unilaterally
C

increase the interest rates. The stipulation is void for violating which fundamental characteristic of a contract:
A. Consensuality of contracts
B. Mutuality of contracts
C. Relativity of contracts
EO

D. Autonomy of contracts

18. A, B and C borrowed from X, Y and Z the amount of P90,000 due on January 25, 2021. On due date:
A. A can be required to pay P30,000 to X, Y or Z
B. B can be required to pay P90,000 to X, Y or Z
C. X can demand payment for P45,000 from A
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D. Y can demand payment for P10,000 from B

19. Joie was admitted to ABC University under a scholarship. However, she transferred to another university and as
stipulated in the scholarship agreement, she was required by ABC University to reimburse the tuition fees she did
not pay due to the same. Which of the following is correct?
A. The stipulation prohibiting the transfer is valid under the principle of autonomy of contracts.
B. The stipulation is not valid for being contrary to public policy.
C. Joie can be validly compelled to pay the tuition fees since she will no longer be part of the school.
D. The stipulation is not valid for being contrary to law
20. Which of the following modes of payment is governed by the law on sales?
A. Dacion en pago
B. Payment by cession
C. Application of payments
D. Tender of payment and Consignation

21. D Company is indebted to C Company for P1,000,000. Prior to the payment of the obligation, D and C underwent a
merger where C is the surviving company. In this case, the obligation is extinguished by:
A. Confusion
B. Compensation
C. Condonation
D. None of the choices

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22. D is indebted to C for P100,000. Prior to paying C, D fraudulently sold his only remaining asset to X. C then filed
for the rescission of the contract of sale between D and X. What do you call the action filed by C?
A. Accion Reinvindicatoria
B. Replevin
C. Accion Quanti Minoris
D. Accion Pauliana

23. The following are examples of a preparatory contract, except:

A. Agency
B. Pledge
C. Partnership
D. None of the choices is an exception

24. S sold his house and lot to B for P3,000,000 through an unnotarized Deed of Sale. What is the status of the
contract?
A. Valid
B. Void
C. Unenforceable
D. Voidable

25. B was tasked by the Barangay to find a lot where the signage of the Barangay with the names of the officials would

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be indicated. For such purpose, he entered into an oral sale with S for a small piece of the latter’s land for P499. The
status of the contract of sale is:
A. Void

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B. Voidable
C. Unenforceable
D. Valid
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26. Yanna sent a telegram to Austin offering to buy his lot for P2,000,000. Austin sent a counter-offer through a
telegram offering to sell the lot for P2,500,000. Yanna replied through another telegram saying that she agrees with
Austin’s price. Which of the following is correct?
A. The sale is unenforceable for it involves sale of real property but was not reduced in writing through a Deed of
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Absolute Sale.
B. The sale is void for not being in a public instrument.
C. The sale is valid and enforceable since there were telegrams that constitute some “note or memorandum”
which makes the sale in writing.
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D. The sale is void since a “sufficient memorandum” cannot be in two or more documents.

27. A famous producer met with Liza Bernardo in a restaurant and offered her a role for a new movie she is producing
where the shooting would start 2 years after to which Ms. Bernardo agreed. The producer initially paid Ms.
Bernardo P2,000,000 and the balance will be payable upon completion of the shooting. 2 years after their meeting,
C

Ms. Bernardo does not wish to perform the contract anymore. In this case,
A. The contract is unenforceable since it is not to be performed within 1 year from execution
B. There was no perfected contract since there was no written document
C. The contract is valid and enforceable since there was already partial performance
EO

D. The producer can compel Ms. Bernardo to perform her obligation

28. D1 and D2 promised to deliver to C a specific cow valued at P100,000. On due date, while D2 was ready to
perform, D1 refused to perform his part of the obligation. In this case,
A. D1 or D2 can be compelled to perform the entire obligation and pay damages.
B. D2 will be made to pay P50,000 plus damages
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C. D2 will be made to pay P50,000 only

D. D1 and D2 share the liability for the P100,000 and damages

29. The requirement that the sale or disposal of real property be made in a public instrument is for:
A. Validity
B. Enforceability
C. Convenience
D. None of the choices

30. A creditor obtains real rights over the fruits of the specific thing to be delivered to him:
A. From the time the obligation is constituted
B. From the time the obligation to deliver arises
C. From the time of actual delivery
D. From demand

31. In which of the following cases can the recipient of the land compel the transferor to execute a public instrument:
A. In case of oral donation of a real property
B. In case of a donation of real property made in a private instrument
C. In case of an oral sale of real property
D. In case of a sale of real property made in a private instrument

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32. X deposited his specific jewelries to Y for safekeeping where the latter would be compensated P2,000 per month
for the storage. X failed to pay 10 months-worth of compensation to Y. In this case, who can ask for compensation
or set-off?
A. X only
B. Y only
C. Either X or Y
D. Neither X nor Y

33. P20 coins are legal tender upto what amount?

A. P1,000
B. P100
C. No limit
D. It is not legal tender

34. A, B and C, individually, are indebted to X for P90,000. A turns out to be a minor and C is already insolvent. How
much can X collect from B?
A. P90,000
B. P60,000
C. P45,000
D. P30,000
E. P0

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35. A, B and C, distinctively, are indebted to X for P90,000. A’s share in the obligation is due on December 31; B’s share
is due once he passes the LECPA for May; C’s share is due on October 31. On November 1,
A. X can collect P30,000 from any of A, B or C

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B. X can collect P30,000 only from C
C. X can collect P90,000 from any of A, B or C
D. X can collect P90,000 only from C
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36. These are spontaneous products of the soil and also includes young and other products of animals.
A. Natural fruits
B. Industrial fruits
C. Civil fruits
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D. Accessories

37. This kind of damage requires actual proof of both the incurrence and the amount:
A. Temperate damages
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B. Moral damages
C. Nominal damages
D. Actual damages

38. Taxi driver D, driving recklessly, hit a pole and injured the passenger. The passenger sued O, the owner of the
C

vehicle. In this case, O can be made liable under delict, quasi-delict or contract. Which of the following is FALSE?
A. O’s liability under delict is considered subsidiary
B. O’s liability under quasi-delict is direct and primary
C. Under contract, O will not be made liable if he is able to prove diligence in the selection and supervision of
EO

employees
D. The passenger will not be allowed to have double recovery

39. D is indebted to C for P100,000. D volunteered his brother X to be the debtor of the obligation to which C agreed.
It turns out, however, that X was already insolvent prior to the substitution. In this case,
A. D is no longer liable on the obligation there being substitution.
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B. D is liable on the obligation because X was already insolvent at the time of substitution
C. D is liable on the obligation if he knew or the insolvency of X was of public knowledge at the time of the
substitution
D. None of the choices is correct

40. As a rule, third parties are not affected, cannot sue on, or be made liable under a contract to which they are not a
party to. This is otherwise known as:
A. Privity of contracts
B. Mutuality of contracts
C. Autonomy of contracts
D. Consensuality of contracts

41. First statement: If the words appear to be contrary to the evident intention of the parties, the latter shall prevail
over the former.
Second statement: Obscure words or stipulations in a contract shall be interpreted in favor of the party who caused
the obscurity.
A. Both statements are true
B. Both statements are false
C. Only the first statement is true
D. Only the second statement is true

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42. If the contract is gratuitous in character, the interpretation that will prevail in case of ambiguity shall be:
A. The least transmission of rights
B. The greater reciprocity of interests
C. The greater transmission of rights
D. The least reciprocity of interests

43. The following are rescissible contracts, except:

A. Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more
than one-fourth of the value of the things which are the object thereof.
B. Those agreed upon in representation of absentees, if the latter suffer the lesion by more than one-fourth of the
value of the things which are the object thereof.
C. Those which are entered into by agents whenever the principal suffer lesion by more than one-fourth of the
value of the things which are the objects thereof.
D. None of the choices is an exception

44. A contract between a minor and a deaf-mute is:

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

45. Ms. B got drunk and Mr. E convinced her to sell her car for P1,000,000 which is significantly less than the fair value

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thereof. In this case,
A. The contract is voidable at the option of Ms. B
B. The contract is void

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C. The contract is valid because both Ms. B and Mr. E are of legal age to give consent
D. The contract is rescissible at the option of Mr. E

A. Sale of land
B. Sale of personal property at least P500
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46. The following contracts are unenforceable if not in writing, except:

C. Lease with a term of more than 1 year

D. Agreement to be performed within a year
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47. Zerris promised to deliver to Karel either her diamond ring worth P20,000; her cellphone worth P30,000; or her
laptop worth P40,000, which were all lost due to Zerris’ fault in the same order they were mentioned. Which of the
following is true?
PA

A. Zerris is required to pay the value of whatever Karel chooses plus damages
B. Zerris’ obligation is extinguished
C. Zerris is liable for P40,000, the value of the laptop, plus damages
D. Zerris is liable for the ring which is the cheapest plus damages
C

48. Zerris promised to deliver to Karel either her diamond ring worth P20,000; her cellphone worth P30,000; or her
laptop worth P40,000. The right of choice was expressly granted to Karel. If all the things were lost due to the fault
of Zerris. Which of the following is true?
A. Zerris is required to pay the value of whatever Karel chooses plus damages
EO

B. Zerris’ obligation is extinguished

C. Zerris is liable for P40,000, the value of the laptop, plus damages
D. Zerris is liable for the ring which is the cheapest plus damages

49. Baldomero entered into a lease contract with Jose, where the latter would pay for all existing subscription for
electricity, water and telephone services in the leased house during the period of the lease. Six months later, Jose
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vacated the premises without any notice and left behind unpaid telephone bills for overseas telephone calls
amounting to over P20,000 which is now being collected by the Telephone Company. In the instant case,
A. Baldomero can refuse to pay the Telephone Company since he was already substituted by Jose as customer
under the terms of the lease contract.
B. The Telephone Company can demand payment from Baldomero since there was no valid substitution, there
being no consent on the part of the former.
C. Jose can be made liable by the Telephone Company upon presentation of the lease contract spelling out his
liability.
D. None of the choices

50. X owns a pig farm which he left unattended when he migrated to Australia. There being a big storm which
threatened the lives of the pigs, Y hurriedly rescued them and provided shelter and managed the pig farm thereafter.
In this case, there is:
A. An agency
B. Negotiorum gestio
C. Solutio indebiti
D. No juridical relation between X and Y

51. Which of the following is not an essential element of contract of sale?

A. Subject matter which should be a determinate thing
B. Price certain in money or its equivalent

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 C. Meeting of minds as to the determinate thing and the price certain in money
D. None of the above

52. Which of the following may not become a subject matter of contract of sale?
A. Future inheritance
B. Hope
C. Undivided interest in a property
D. Things subject to a resolutory condition

53. S and B orally entered into a contract involving a production of a particular dining table based on the design
specifically customized for B at a price of P500 with the production to be started 15 months from the date of oral
agreement. Payment of the price of P500 will happen at the time of delivery. The estimated production cost of the
said dining table is P800. What is the status of contract between S and B?
A. Perfectly valid contract
B. Rescissible contract
C. Voidable contract
D. Unenforceable contract

54. S sold to B his lot under a conditional sale. The lot was already delivered and occupied by B, but the transfer of
ownership is conditioned upon full payment of the price. When will the transfer of ownership happen?
A. Upon deliver
B. Upon full payment of the price

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C. Upon execution of a public instrument
D. Ownership will never transfer

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55. S sold and delivered a mass of monggo (100 sacks) in his specific warehouse to B at a lump sum price P100 per sack.
Which of the following statements is correct?
A. The contract of sale is void because the subject matter is not determinate at the time of constitution of the
contract. ev
B. If the content of the mass is 150 sacks, B will own all the mass of monggo provided he will pay P100,000 to S.
C. If the content of the mass is only 80 sacks, S is still required to deliver additional 20 sacks to B unless there is
stipulation to the contrary.
D. None of the above
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56. H and W entered into a contract of marriage on year 2022 without any agreement as to their marital property
regime. H, through force and intimidation, compelled W to give consent and to sign the deed of sale involving the
exclusive property of W to H at a bargain price of P100,000 whereby W suffered lesion amounting to P30,000.
PA

What is the status of the contract of sale?

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

57. T stole the necklace of S. Afterwards, T conducted a public auction then sold and delivered the said necklace to B at
a price of P10,000. B acquired the said necklace in such public auction. Which of the following statements is correct?
A. S can legally recover the necklace from B even without reimbursing B.
EO

B. S may legally recover the necklace from B but he must reimburse B of the amount of P10,000.
C. S can never legally recover the necklace from B because the latter is a purchaser in good faith and for value.
D. S cannot legally recover the necklace from B even if he reimburses B of the amount of P10,000.

58. Which of the following is not a ground for right of possessory lien by an unpaid seller?
A. Where the goods have been sold without any stipulation as to credit
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B. Where the goods have been sold on credit, but the credit term has expired
C. Where the buyer is insolvent
D. Where the goods are perishable

59. Which of the following is not a ground for right of resale by an unpaid seller?
A. The goods are of perishable nature.
B. The seller has expressly reserved the right to resell the goods in case the buyer should make default.
C. The buyer has been in default for an unreasonable time.
D. The buyer becomes solvent.

60. S sold to B a lot with an area of 100 square meters at a price of P1,000 per square meter. Within six (6) months
from the date of delivery of the lot, B discovered that the actual area of the said lot is only 91 square meters. What
is the remedy available to B regarding this deficiency in the area of the lot?
A. Ask for proportionate reduction of price by paying only P91,000
B. Ask for rescission or cancellation of contract of sale of the 100 square meters lot
C. Either a or b
D. Neither a nor b

61. In case of double sale of movable or personal property, who among the buyers of the said movable property from
the same seller shall prevail?
A. Buyer with the oldest title

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 B. First possessor, either actual or constructive possession, of the movable property in good faith
C. First payor of the movable in good faith
D. First registrant of the deed of sale of movable property in good faith

62. It refers to a type of waiver of warranty against eviction that is made by the buyer when he acted in bad faith
because he has knowledge of the risk of eviction. In this case, the seller is no longer liable for eviction.
A. Waiver consciente
B. Waiver intentionada
C. Waiver possessionada
D. Waiver reindivicatoria

63. On January 1, S sold a specific lot to B. Unfortunately, the said lot is encumbered by a nonapparent and unregistered
burden or servitude of septic tank. On July 1, B discovered the said servitude. What is the legal remedy still available
to B from its discovery?
A. Action for rescission or cancellation of the sale of the lot
B. Action for indemnification for damages
C. Either
D. Neither

64. In which of the sale is warranty for hidden defect available to the buyer?
A. Sale of second hand item or pre-owned item or pre-loved item
B. Sale by Junk-shop operators

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C. Sale in auction
D. Sale of brand new item by online sellers

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65. What is the prescriptive period for filing action redhibitoria or action quanti minoris based on breach of warranty
against presence of redhibitory defect in an animal sold?
A. 3 days from the date of delivery
B. 40 days from the date of delivery
C. 6 months from the date of delivery
D. 1 year from the execution of deed of sale
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66. S sold his specific land to B under pacto de retro sale or sale with a right to repurchase whereby it was stipulated
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that the period of redemption is 25 years. What is the period for redemption of the said land?
A. 25 years
B. 4 years
C. 10 years
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D. 20 years

67. A, B and C are co-owners of a specific land. On October 1, A sold his 1/3 share in the said land to D under a deed
of pacto de retro sale. On October 2, B also sold his 1/3 share in the said land to D a deed of under pacto de retro
sale. On October 3, C also sold his 1/3 share in the said land to D under a deed of pacto de retro sale. Which of the
C

following statements is correct?

A. C may legally compel D for the redemption or repurchase of his 1/3 share in the said land.
B. A cannot legally compel D for the redemption or repurchase of his 1/3 share in the said land.
C. D may legally demand A, B and C to come to an agreement upon the repurchase of the whole land, and if they
EO

fail to do so, D cannot be compelled to consent to a partial redemption of the said land.
D. None of the above

68. In which of the following instances is legal redemption of an immovable property allowed?
A. Absolute sale of a share in real property by a co-owner
B. Dacion en pago of rural lot not exceeding one hectare (10,000 sqm) by a farmer to a landlord
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C. Barter of urban lot which is so small and which was bought merely for speculation
D. Any of the above

69. What is the remedy available to vendor or lessor when the vendee or lessee fails to pay a single instalment or single
periodic rental in an instalment sale or finance lease of personal property assuming a chattel mortgaged is
constituted on the personal property sold or leased?
A. Exact fulfillment of the obligation with right to recovery for deficiency
B. Cancel the instalment sale or finance lease resulting to mutual restitution
C. Foreclose the chattel mortgage on the personal property sold or leased
D. Any of the above

70. What is the minimum grace period allowed by law to pay a defaulted instalment without additional interest to a
buyer of residential real property in instalment when he has only paid less than two years of instalments?
A. 30 days
B. 60 days
C. 90 days
D. 120 days