MIDTERM EXAMINATIONS IN CIVIL LAW REVIEW 2

(AUSL)
(PROF. ELMER T. RABUYA)

PART 2 (MCQs)

1) The guardian alienated the parcel of land of his ward without judicial approval and
the ward suffered lesion by more than ¼ of the value of the property. What is the status of the
contract?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent

2) A minor and a mentally insane person entered into a contract. What is the status of
the contract?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent

3) A minor sold his parcel of land in a verbal contract with a person of legal age, the
latter knowing that he was dealing with a minor. The contract is still purely executory. What is
the status of the contract?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent

4) The lessor granted the lessee a right of first refusal over the leased premises. In
violation of the lessee’s right of first refusal, the lessor sold the property to someone else.
What is the status of the contract?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent

5) The son sold his father’s land in the name of the latter but without authorization.
What is the status of the contract of sale?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent

6) To defraud his creditor, the debtor executed a fictitious sale over his parcel of land
in favor of his son. It was made to appear in the document that price was paid when in truth it
was not. What is the status of the contract?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent

7) “A” sold his land to “B” by way of a verbal contract. “A” received a downpayment
from “B” but the former did not issue a receipt. What is the status of the contract of sale?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent
 8) “A” entered into a verbal contract of real estate mortgage with “B” over his house
and lot. What is the status of the contract?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent

9) A legal representative entered into a contract over the property of the absentee
where the latter suffered lesion by more than ¼ of the value of the property. The contract was
approved by the court. What is the status of the contract?

A. Perfectly Valid B. Rescissible C. Voidable D. Unenforceable E. Void or

Inexistent

10) What is the status of a verbal agreement for the payment of interest?

A. Valid and legally demandable. B. Valid but not legally demandable. C. Void or
Inexistent
D. Unenforceable E. Voidable.

11) Which of the following contracts is perfected by mere consent?

A. Deposit B. Loan C. Antichresis D. Pledge E. None of the

enumerated.

12) Which of the following contracts is obligatory?

A. An oral sale of a parcel of land which is purely executory.

B. A contract entered into by a minor with an insane person.
C. A sale of a car by an agent on behalf of the owner but without authorization from
the latter.
D. A sale by an agent of a parcel of land pursuant to the verbal authorization from the
owner.
E. A contract entered into by a minor with a person of legal age.

13) Which of the following is not a characteristic of a rescissible contract?

A. The defect of the contract can be ratified.

B. The action for rescission is subject to a prescriptive period.
C. The remedy of rescission is a subsidiary remedy.
D. The defect of the contract can be used as a defense.
E. A and D.

14.) Which of the following is not a characteristic of an unenforceable contract?

A. The defect of the contract can be ratified.

B. The action questioning the defect is subject to a prescriptive period.
C. The defect can be cured by ratification.
D. The defect cannot be raised by a third person.
E. B and D.

15) Which of the following contracts is least defective?

A. Rescissible B. Voidable C. Unenforceable D. Void or Inexistent

 16) In which of the following situations is the contract perfected?

A. A made an offer to B. B rejected the offer. But shortly thereafter he changed his
mind and accepted A’s offer. But A was no longer interested.
B. Offerer granted a definite period to offeree to consider the offer, and the latter paid
a valuable consideration for such concession. During the period agreed upon, the
offeree manifested his acceptance of the offer but the offerer said that he was no
longer interested.
C. X advertised the sale of his property in the newspaper. Y responded to the
advertisement by placing his order. X did not, however, respond to Y’s overture.
D. X made an offer to Y. Y accepted the offer, but with a qualification.

17) X made an offer to Y, thru a letter. Y accepted the offer, likewise thru a letter. The
letter of acceptance was made by Y on day 1. On day 2, he sent the letter to X, via registered
mail. On day 3, Y died. On day 4, the letter of acceptance was received by X. Which is
correct?

A. The rights of Y, if any, arising from the transaction, were transmitted to his heirs.
B. The contract was already perfected on day 1 insofar as Y was concerned because
he was already aware of the meeting of the offer and acceptance on the said day.
C. The contract was already perfected on day 2, following the mail-box theory.
D. The contract was never perfected because the offer was rendered ineffective by
the death of Y, at which time the acceptance is not yet binding upon the offeror.

18) M offered to sell to N his car for Three Hundred Thousand Pesos. In the process of
their transaction, M accepted the sum of Ten Thousand from N. He thereafter issued a receipt
stating: “I hereby acknowledge receipt of option money in the amount of Ten Thousand Pesos.
The balance of the purchase price shall be paid within thirty days from today.” Can M sell the
car to someone else after the lapse of the thirty-day period mentioned in the receipt?

A. Yes, because N has no obligation to accept the offer and such offer will terminate
after the lapse of the 30-day period mentioned in the receipt.
B. No, because there is a valid option contract between the parties and M is bound to
sell the property only to N.
C. No, because there is a perfected contract of sale between M and N which must first
be rescinded or cancelled.
D. Yes, because even if there is a perfected contract of sale between M and N the
same is rescinded if the purchase price is not paid within the 30-day period
mentioned in the receipt.

19) The following contracts are obligatory and binding except ----

A. A contract where the agent acted beyond or in excess of his authority.

B. A contract where one of the parties was insane at the time of the meeting of the
minds.
C. A contract entered by the legal representative where the absentee suffered lesion
by more than 1/4 of his property.
D. A verbal contract of pledge where the debtor delivered the thing pledged to the
creditor.

20) The payment made to a wrong person is not valid if ---

A. The creditor ratifies the payment made to a third person.

 B. The third person who received the payment is a possessor of the credit and the
debtor acted in good faith.
C. The one who received the payment was the previous creditor who already assigned
his credit to someone else but without the knowledge of the debtor.
D. The payment redounded to the benefit of the debtor.

21) X and Y have agreed on a verbal sale of a parcel of land, with a little downpayment.
No receipt was issued by X when he accepted the downpayment and there were no witnesses
to the transaction aside from the parties. X is now denying the existence of the contract. What
is the remedy of Y?

A. He can sue for specific performance but he may not compel X to reduce the sale in
a public instrument.
B. He can compel X to reduce the sale in a public instrument simultaneously with his
action for specific performance.
C. He can compel X to reduce the sale in a public instrument but not simultaneously
with the action for specific performance.
D. He cannot compel X to reduce the sale in a public instrument nor sue for specific
performance.

22) In which of the following situations may the debtor compel his creditor to accept
the tender of payment of an obligation?

A. If payment is in the form of a manager’s check in the amount of One Billion Pesos.
B. If payment is in the form of treasury bills which are guaranteed by no less than the
Republic of the Philippines.
C. If payment is in the form of 25-centavo denominated coins totaling Ninety Five
Pesos.
D. If payment is in the form of a luxury car, such as Porsche or Jaguar.

23) It is a form of novation by substitution of the person of the debtor thru the initiative
of the latter. What do you call such kind of novation?

A. Conventional Subrogation B. Delegacion C. Expromission D. Legal

Subrogation

24) In which of the following situations is there NO novation?

A. When a third person (with no interest in the fulfillment of the obligation) pays the
creditor with the debtor’s consent.
B. When a third person (with an interest in the fulfillment of the obligation) pays the
creditor without the debtor’s consent.
C. When a creditor pays another creditor similarly situated, without the debtor’s
knowledge.
D. When the creditor transfers his credit to a third person with the consent of the
latter and the debtor.

25) X assigned his rights, as a co-creditor, in favor of A (not a solidary creditor),

without the consent of the other solidary creditors Y and Z. Upon being notified of the
assignment in favor of A, the debtor (D) paid the entire obligation to the latter. Which of the
following statements is correct?

A. D cannot be made to pay again by Y and Z even if the payment to A is not valid.
B. D cannot be made to pay again by Y and Z because his payment to A is not valid.
 C. D can be made to pay again to Y and Z because his payment to A is not valid.
D. The payment to A is valid, but X will be liable to Y and Z for any damage that will be
suffered by them.

26) Which of the following obligations is solidary?

A. Obligation of A, B and C to deliver a horse.

B. When the makers of the promissory note say: “we, promise to pay the creditor the
sum of Ten Thousand Pesos,” and the same was signed by all of them as makers.
C. When three conspirators were adjudged guilty of a crime and ordered to pay civil
liability.
D. When the spouses A and B borrowed Ten Thousand Pesos from X.

27) In one obligation, the performance of either prestations 1, 2 or 3 is sufficient to extinguish the debtor’s
obligation. Prestation number 2, however, was lost by reason of the creditor’s fault. What will happen?

A. There is no effect because here the right to choose belongs to the creditor.
B. The debtor may rescind the contract.
C. The obligation of the debtor is extinguished.
D. There is no effect because the debtor may still choose from the remaining prestations.

28) X made a verbal offer to Y for the sale of his land, which offer was verbally
accepted by the latter. X subsequently denied the existence of the sale, thus forcing Y to file
an action in court for specific performance. Y presented witnesses to prove the existence of
the oral contract. When the judgment was issued, the court ruled in favor of Y. In the motion
for reconsideration filed by X, he argued that the oral contract of sale should have been
declared unenforceable under the Statute of Frauds. Is X correct?

A. Yes, because an oral contract of sale over a parcel of land is required to be in

writing in order to be enforceable.
B. No, because the defense of statute of frauds may no longer be invoked because it
has been waived.
C. Yes, because the court should not have allowed the presentation of oral testimony
to prove the existence of the contract.
D. No, because the contract in question is not covered by the Statute of Frauds.

29) X, to avoid paying his creditor (Y), transferred his properties to A. X and A made it
to appear that the latter paid the purchase price stated in the contract of sale, when no such
price was in fact paid. Which of the following statements is correct?

A. Y may rescind the contract between X and A because it was in fraud of creditor.
B. X may no longer recover the properties from A because both of them were in pari
delicto.
C. The remedy is an action to declare the contract between X and A void or inexistent,
but Y has no personality to file such action.
D. The remedy is an action to declare the contract between X and A void or inexistent
and Y has the personality to file such action because his interest is directly
affected.

30) Which of the following contracts is NOT unenforceable?

A. Where one party is a minor while the other is insane.

B. An oral marriage settlement between the groom and the bride.
 C. Sale of a car by an alleged agent without authority from its owner.
D. Mortgage of real property belonging to the ward by the guardian, without judicial
approval.
E. None of the above.

31) Which of the following contracts is void?

A. An oral sale of a parcel of land by an agent with written authority from his principal.
B. A sale of a parcel of land by an agent in a public instrument, but without authority from the principal.
C. An oral contract of antichresis.
D. An oral donation of a cellphone worth three thousand pesos.

32) Manresa is of the view that once the offeree has accepted the offer, the contract is
already binding as to him and he may not, therefore, withdraw his acceptance, even if the
same has not yet reach the knowledge of the offerer. This view cannot be sustained because
it violates ---

A. The principle of the obligatory force of contracts.

B. The principle of autonomy of contracts.
C. The principle of mutuality of contracts.
D. The principle of relativity of contracts.

33) X’s debt to Y amounting to P100,000 matured on March 1, 2012, while Y’s debt to X
in the same amount matured on March 5, 2012. On March 6, 2012, X received a notice of
garnishment directing him to deliver to the court the credit owing to Y, to which he complied
on the following day. When X demanded payment from Y, the latter refused arguing that his
obligation to X had already been extinguished. Is Y correct?

A. No, because X did not receive any payment.

B. Yes, because Y’s obligation to X was extinguished by operation of law.
C. No, because X validly complied with a lawful order from the court.
D. Yes, because the payment made by X to the court is a payment made to a wrong
person.

34) A and B obliged themselves to deliver to C a race horse, which they failed to do.
Choose the best statement. In this situation:

A. A demand by C to either A or B for the delivery of the horse makes either of the
latter in default because the obligation of A and B is solidary by its nature.
B. Upon default, the obligation of A and B is converted into payment of damages and
may not be satisfied in any other way.
C. A demand by C to either A or B for the delivery of the horse is not effective because
either of them is liable only for a portion of the indebtedness which cannot be
performed separately because of its indivisible nature.
D. C may demand from either A or B because the law presumes that the obligation is
solidary in case of plurality of subjects.

35) For coins having denominations of centavos, they are considered legal tender but
only up to a maximum amount of:

A. P10 B. P100 C. P1,000 D. P5,000

36) The mortgagor, whose mortgaged property was foreclosed, tried to redeem the
property from the mortgagee who purchased the same during the public auction. The
mortgagee refused, however, to accept the tender of the redemption price because it was in
the form of manager’s check. What is the remedy of the mortgagor? Choose the best answer.

A. He has no remedy because the refusal by the mortgagee is valid, the check not
being legal tender.
B. The refusal by the mortgagee is not justified since the check is as good as cash
and the mortgagor can validly resort to consignation.
C. The refusal by the mortgagee is not justified because the tender of redemption
price in the form of check is sufficient to preserve the right and the remedy of the
mortgagor is to resort to consignation.
D. The refusal by the mortgagee is not justified because the tender of redemption
price in the form of check is sufficient to preserve the right and the remedy of the
mortgagor is an action for specific performance to compel redemption.

37) The creditor and the third person entered into an agreement for the transfer of
rights of the former in favor of the latter. But they agreed that their agreement would not be
effective and valid without the conformity of the debtor. The latter did not, however, give his
conformity. Can the third person collect from the debtor?

A. Yes, because the consent of the debtor is not required in assignment of credit.
B. No, this is not assignment of credit but conventional subrogation which requires
the debtor’s consent.
C. Yes, because the third person has been authorized by the creditor to collect.
D. No, because whether the transaction involved is one of assignment of credit or
conventional subrogation the debtor’s consent is required.

38) The previous debtor offered a third person as his substitute, which offer was
accepted by such third person and by the creditor. Thereafter, the new debtor becomes
insolvent. Can the creditor recover from the old debtor? Choose the best answer.

A. Yes, because the person he offered as substitute turned out to be insolvent.

B. No, because the old debtor was already released from the obligation.
C. Yes, because the new obligation was not fulfilled.
D. Yes, because the new obligation was not fulfilled.
E. No, because the creditor is already estopped from going against the old debtor
when he accepted the substitution.

39) The “mirror image” rule in contract law requires that:

A. The offer must have been made seriously.

B. The acceptance must be absolute.
C. The offer must be definite.
D. The acceptance must be made expressly.

40) A, B and C are solidarily indebted to X, Y and Z, who are each entitled to collect the
entire credit. Upon the maturity of the debt, X made a demand upon A for the payment of the
entire debt. But it was B who offered to pay X, but the latter refused to accept the tender of
payment. Can B validly resort to consignation?

A. No, because the refusal by X to accept the tender of payment is justified since he
chose to collect only from A and not from B and C.
B. Yes, because in mixed solidarity it is the debtor who has the right to choose to
whom the payment should be made among the solidary creditors.
 C. No, because the refusal by X to accept the tender of payment is justified because
in mixed solidarity it is the creditor who has the right to choose from whom to
demand and accept payment.
D. Yes, because X has no valid reason for refusing to accept the tender of payment.

41) The offeror granted the offeree a definite period to consider the offer, with an
agreement that the purchase price in the offer shall also be the consideration for the option.
During the period agreed upon, the offeror made the same offer to another who accepted the
same. The offeree sued for damages. Will it prosper?

A. Yes, because the option is binding even without a consideration separate from the
purchase price.
B. No, because the offeror is not bound by the period agreed upon since the option is
without any consideration.
C. Yes, because the option is supported by the same consideration as that of the
contemplated contract.
D. No, because the offeror is always free to withdraw his offer even if there is an
option contract.

42) A, a passenger of a taxi, was seriously injured when the cab that he was riding
collided with another vehicle. The proximate cause of the accident was the reckless driving of
the tax driver. The taxi is owned by the operator. Choose the best answer.

A. A cannot recover under quasi-delict because the existence of the contract bars
recovery under quasi-delict.
B. A can recover from both the taxi driver and the operator because there was breach
of contract.
C. If A will recover damages based on the crime committed by the taxi driver, the
liability of the taxi driver and the operator is solidary.
D. If A will proceed to recover damages under quasi-delict, it is possible for the taxi
operator to be free from liability.

43) A borrowed P5,000 from his friend B. Upon its maturity, A received a phone call
from B. In their phone conversation, B condoned A’s debt and the latter said “thank you” to the
former. Thereafter, C paid the condoned amount to B, without the knowledge and consent of
A. B accepted the payment. Choose the best answer.

A. The condonation is not valid because the same, as well as the acceptance, were
not reduced in writing.
B. C may not recover the payment from B, because he paid it voluntarily.
C. C can demand reimbursement from A up to the amount that the latter has been
benefited by the payment.
D. C cannot demand reimbursement from A because the condonation was valid.

44) X stole the cellphone of A. He was apprehended the following day. While the parties
were in the police station, X offered to return A’s cellphone but the latter refused and
demanded instead for the payment of its value, fearing that the same may have already been
damaged. X eventually posted bail and was told to leave the cellphone in the custody of the
police station. While he was out on bail, the cellphone was damaged due to flood which hit the
police station. Choose the best answer.

A. The obligation of X to A is not extinguished because he failed to deposit the

payment in court by way of consignation.
 B. The obligation of X to A is not extinguished because the deposit of the cellphone in
the police station is not a valid consignation.
C. The obligation of X to A is already extinguished because the thing was lost without
his fault.
D. The obligation of X to A is already extinguished by way of payment because the
latter refused to accept the tender of payment without justifiable reason.

45) A has various obligations to B. The oldest in the amount of P100,000 was
unsecured, but without interest. The second in the amount of P200,000 was unsecured, but
with interest. The most recent in the amount of P300,000 was secured by a mortgage, but
without interest. All debts became due. However, the debtor was able to come up only with
the amount P150,000. A day after accepting the payment, the creditor issued a receipt
applying the payment to the oldest debt and the rest thereof to the second debt. Upon
receiving the receipt, A immediately objected and demanded that the entire payment be
applied to the third obligation. Choose the best answer.

A. A is correct because the right to make the application of payment, in this case,
pertains to the debtor.
B. The application of payment made by the creditor is valid because the right of the
debtor to make such application is already extinguished.
C. Neither of them is correct, because the entire payment should be applied to the
second debt, it being the most onerous to the debtor.
D. A is correct, because the third debt is the most onerous to him.

46) A and B are indebted to each other in the amount of P500,000. A’s debt matured on
January 14, while B’s debt matured on January 20. A is also indebted to C, who filed an action
against him. When C obtained a favorable judgment, a notice of garnishment of A’s credit was
served upon B on January 21. B complied with the notice and turned over to the court the
amount of P500,000. Choose the best answer.

A. B has no more obligation to A, while the latter is still obligated to pay B the amount
of P500,000.
B. A has no more obligation to B, while the latter is still obligated to pay A the amount
of P500,000.
C. A may no longer recover from B, but his remedy is to recover the amount of
P500,000 from the court.
D. B may no longer recover from A, but his remedy is to recover the amount of
P500,000 from the court.

47) There is no legal subrogation in this situation:

A. A surety pays the creditor, without the knowledge of the debtor.

B. A preferred creditor pays a non-preferred creditor, without the debtor’s knowledge.
C. A guarantor pays the creditor with the knowledge of the debtor.
D. A stranger pays the creditor with the approval of the debtor.

48) As a rule, a contract cannot affect the interest of a third person not a party to it.
This is an application of what principle in contract law?

A. Obligatory force of contracts B. Autonomy of contracts

C. Relativity of Contracts D. Mutuality of contracts

49) “P” boarded a taxi driven by “D.” Due to D’s reckless driving, P suffered injuries. In
this situation, P may not recover civil liability from D under ---
A. contract B. delict C. quasi-contract D. quasi-delict

50) In which of the following is the contract not perfected?

A. Where there was payment of earnest money.

B. Where the option was not supported by a consideration but the offer was
withdrawn after the acceptance had been conveyed to the offeror.
C. Where offeree dies after the offeror had gained knowledge of the acceptance.
D. Where the acceptance varies the terms of the offer.