AR7-First-Preboards - Grade: B PDF

Preview

Summary

01Multiple Choice1/ 1 The following are the rights of the buyer under Maceda Law, except:❖ To sell his rights or assign the same to another person before actual cancellation of contract. ❖ To pay in advance any installment or the full unpaid balance of the purchase price with interest at any time ❖ ...

Description

01Multiple Choice 1/ 1

The following are the rights of the buyer under Maceda Law, except: ❖ To sell his rights or assign the same to another person before actual cancellation of contract. ❖ To pay in advance any installment or the full unpaid balance of the purchase price with interest at any time ❖ To reinstate the contract by updating the account during the grace period and before actual cancellation of contract. ❖ To have the full payment of the purchase price annotated in the certificate of title covering the property.

02Multiple Choice 1/ 1

The parties in a contract agreed that the interest rate is 10% per annum and it can be increased if there is a law that would authorize the increase of interest rates. Suppose the creditor would increase the rate of interest without a law authorizing it, is the creditor’s action valid? ❖ No, because it is violative of the principle of obligatory force of contract. ❖ No, because it is violative of the principle of mutuality of contracts. ❖ No, because it is violative of the principle of relativity of contract. ❖ Yes, because it is in accordance with the principle of autonomy of contract.

03Multiple Choice 1/ 1

Dante entered into a contract of lease with Cardo. Tito, the clerk of Cardo, typed the document. Due to Tito’s negligence, the document made was that of sale instead of lease. ❖ ❖ ❖ ❖

The remedy is reformation. Parties may go to court for interpretation. Parties may enforce their right because it is enforceable. The remedy is annulment.

04Multiple Choice 1/ 1

Dante borrowed P20,000 from Cardo. Dante promised to pay Cardo if he (Dante) would enroll in the College of Law this school year. Which of the following is correct?

❖ Only the condition is valid. ❖ Only the obligation is valid. ❖ Both obligation and condition are valid. ❖ Both obligation and condition are void.

05Multiple Choice 1/ 1

Dante, a guardian of minor Greg, sold the property of the latter for P3 million. The sale was approved by the court despite the selling price being way below its market value of P5,000,000. What is the status of the contract? ❖ Voidable ❖ Valid and enforceable ❖ Unenforceable ❖ Rescissible

06Multiple Choice 0/ 1

Statement 1: In quasi-contract, the consent is not expressly given, but merely implied from the acts of the parties so that no one will be unjustly enriched or benefited at the expense of another.

Statement 2: The creditor has real right over the thing from the time the obligation to deliver it arises. ❖ Both statements are false. ❖ Both statements are true. ❖ Only statement 2 is true., ❖ Only statement 1 is true.

07Multiple Choice 1/ 1

Greg obligated himself to deliver a BMX bike to Rico if Greg would join a singing contest. It was agreed later on that Greg would just give P100,000 cash instead of delivering the bike.

Which of the following is true? ❖ The second obligation is an example of personal novation. ❖ The second obligation is valid and is subject to the same condition as the first one. ❖ The second obligation is valid and is not subject to any condition at all. ❖ The novation is null and void.

08Multiple Choice 1/ 1

Dante and Cardo entered into a contract of sale of 1,000 kilos of a particular mass of sugar stored in the bodega of Dante at P100 a kilo. Before Dante could weigh the 1,000 kilos of that specific sugar, the bodega of Dante was totally destroyed by fire of unknown origin. Which of the following is false? ❖ ❖ ❖ ❖

The loss occurs after perfection but before delivery of the sugar. Dante cannot compel Cardo to pay the purchase price. Dante can compel Cardo to pay the purchase price. Dante’s obligation to deliver the sugar is extinguished.

09Multiple Choice 0/ 1

Dante and Cardo executed a “Contract of Sale” over a certain real property payable in 60 monthly installments. Immediately thereafter, Cardo occupied the property. Which of the following is false? ❖ Cardo is the owner of the property despite non-payment of the price. ❖ The non-payment of price is a negative resolutory condition of the sale. ❖ Dante must seek rescission of the contract if he wants to regain ownership of the property. ❖ The payment of the price is a positive suspensive condition of the sale.

10Multiple Choice 1/ 1

Dante, a sugar miller, and Cardo, a manufacturer and dealer in wines, entered into an agreement whereby Dante was to deliver sugar worth P50,000 to Cardo who was to give 100 bottles of wine worth P50,000, At the date of delivery, Cardo had only 25 bottles of wine. With the consent of Dante, Cardo paid the difference of P37,500 in cash. What is the contract between Dante and

Cardo? ❖ ❖ ❖ ❖

Sale Barter Contract for piece of work Agency to sell

11Multiple Choice 0/ 1

Dante orally offered to sell his two-hectare rice land to Cardo for P5 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. Which statement is most accurate? ❖ If Dante refused to deliver the land, Cardo 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 subject to ratification by the parties. ❖ The contract between the parties is rescissible. ❖ If Dante refuses to deliver the land on the agreed date despite payment by Cardo, the latter may not successfully sue Dante because the contract is oral.

12Multiple Choice 0/ 1

Statement 1: The action for annulment of contracts is extinguished when the thing which is the object thereof is lost through the fraud or fault of the person who has the right to institute the proceedings.

Statement 2: A third person who induces another to violate his contract is liable for damages to the other contracting party based on the contract violated. ❖ Only statement 1 is true. ❖ Only statement 2 is true. ❖ Both statements are false. ❖ Both statements are true.

13Multiple Choice

1/ 1

Without knowledge of guardian Lito, minor Dante sold his personal bike valued at P100,000 to an adult named Cardo for P60,000. What is the status of the contract? ❖ The contract is voidable due to gross inadequacy of cause. ❖ The contract is voidable because one of the contracting parties in incapable of giving consent. ❖ The contract is rescissible because Dante suffered lesion by more than ¼ of the value of the property. ❖ The contract is valid because no violence was employed upon Lito to secure his consent.

14Multiple Choice 1/ 1

Cardo sold a 4,000-sq. meter parcel of land to Dante for a price of P1,000 per square meter. It was later discovered that the exact area of the lot was only 3,600 square meters. What is the appropriate remedy that can be availed of by Cain against Abel? ❖ ❖ ❖ ❖ ❖

Either proportional reduction of the price or rescission Proportional reduction of price only Rescission only Neither proportional reduction of the price or rescission

15Multiple Choice 1/ 1

Dante, a dealer in appliances, sold to Cardo a car for P500,000 payable on installment basis at the rate of P100,000 per month. Cardo executed a chattel mortgage over his van to secure payment. When Cardo defaulted in the payment of his obligation, Dante foreclosed the mortgage. At the sale of the van, only P400,000 was realized. Which of the following is true? ❖ Dante cannot recover the deficiency from Cardo. ❖ Dante can still recover the deficiency from Cardo. ❖ The law applicable to the transaction is Recto Law. ❖ The law applicable to the transaction is Maceda Law.

16Multiple Choice

1/ 1

Statement 1: In both expromission and delegacion, the old debtor must be released from liability.

Statement 2: The solidary debtor who made the payment may claim from his codebtors only the share which corresponds to each, with interest for the payment already made. ❖ Both statements are false. ❖ Only statement 1 is true. ❖ Both statements are true. ❖ Only statement 2 is true.

17Multiple Choice 0/ 1

Dante borrowed P1 million from Ben. The loan was secured by a real estate mortgage. Lito signed the mortgage as one of the witnesses to its execution. The mortgage was not registered with the Registry of Deeds. Subsequently, Dante sold the mortgaged property to Lito. If Dante cannot pay the loan, can Ben still foreclose the mortgage? ❖ ❖ ❖ ❖

No, because the mortgage is not registered with the Registry of Deeds. Yes, because the mortgage is binding upon Lito. Yes, because the sale is rescissible intended to defraud Ben. No, because Dante is no longer the owner and Lito is a third person with respect to the mortgage.

18Multiple Choice 1/ 1

Dante sold a piece of land to minor Cardo. One month later, Dante died. Dante’s heirs then brought an action to annul the sale claiming that Cardo was a minor and therefore without legal capacity to contract. Are the heirs correct in filing annulment? ❖ ❖ ❖ ❖

No, because the heirs cannot allege the incapacity of Cardo. No, because the heirs are not parties to the contract. Yes, because the contract is voidable as one of the contracting parties is a minor. No, because the contract is perfectly valid.

19Multiple Choice 0/ 1

Knowing that the car had a hidden crack in the engine, Dante sold it to Cardo without informing the latter about it. In any event, the deed of sale expressly stipulated that Dante was not liable for hidden defects. Does Cardo have the right to demand from Dante a reimbursement of what he spent to repair the engine plus damages? ❖ ❖ ❖ ❖

Yes. Dante is liable whether or not he was aware of the hidden defect. No, because Cardo is in estoppel, having changed engine without prior demand. No, because Cardo waived the warranty against hidden defects. Yes, since the defect was not hidden; Dante knew of it but he acted in bad faith in not disclosing the fact to Cardo.

20Multiple Choice 1/ 1

Statement 1: The expenses for the execution and registration of the sale is to be borne by the buyer, unless there is a stipulation to the contrary.

Statement 2: The thing must be licit and the seller must have a right to transfer the ownership at the time of perfection of the contract. ❖ ❖ ❖ ❖

Both statements are true. Only statement 2 is true. Only statement 1 is true. Both statements are false.

21Multiple Choice 1/ 1

Dante wanted to borrow P1 million from Sam. Sam asked Dante to give him a collateral to secure the payment of the loan. Dante convinced his mother to transfer her property to him so that he could mortgage it, to which the mother willingly agreed. Pursuant thereto, Dante, as buyer, and his mother, as seller, executed a deed of absolute sale over the latter’s property for P4 million which was never paid by Dante. Is there a valid sale between the parties? ❖ No, because the contract is relatively simulated. ❖ Yes, because all the essential elements of a contract are present.

❖ Yes, because there was a written agreement between Dante and his mother. ❖ No, because the contract is absolutely simulated.

22Multiple Choice 1/ 1

Dante promises to transfer a specific car to Lito or pay him P200,000. Which of the following is correct? ❖ The obligation of Dante to pay P200,000 is subject to a suspensive condition that he will fail to convey the car. ❖ There is only one obligation with 2 things due alternatively that may be satisfied by the performance of one of them. ❖ Dante may offer to satisfy the obligation by substituting the payment of P500,000. ❖ The payment of P200,000 is a penalty and Dante cannot choose to pay the penalty in lieu of the conveyance of the car.

23Multiple Choice 0/ 1

Dante, Danilo, Dina and Diana, as solidary debtors, were liable to Cardo and Carding, as solidary creditors, in the amount of P2.4 million. Cardo remitted the share of Dina in the obligation. Without knowledge of the remission, Diana then paid Cardo P2.4 million. Diana sought reimbursement from the other debtors. It turned out that Dina was insolvent. Which of the following is correct? ❖ Carding can claim from Cardo up to P1.6 million. ❖ Diana can seek reimbursement from Dante in the amount of P800,000. ❖ Diana can seek reimbursement from Danilo in the amount of P600,000 ❖ Cardo must pay Carding P900,000.

24Multiple Choice 1/ 1

Dante is indebted to Cardo for P1 million which is secured by the real estate mortgage. The

debt, however, prescribes after the lapse of several years without it being paid. Subsequently, Titus, without consent of Dante, pays Cardo. Which of the following is correct? ❖ Titus has no right to demand reimbursement from Dante because his payment to Cardo did not benefit Dante. ❖ Titus has no right to demand reimbursement although his payment to Cardo has benefitted Dante. ❖ Titus can demand full reimbursement from Dante but has no right to foreclose the mortgage in case of non-payment. ❖ Titus can demand full reimbursement from Dante and has a right to foreclose the mortgage in case of non-payment.

25Multiple Choice 0/ 1

The following are the requisites for the exercise pre-emption right or right of redemption with the exception of: ❖ The land may be rural or urban. ❖ The size of the land is so small that it cannot be used for any practical purpose within a reasonable time. ❖ It must be exercised within 30 days from written notice by prospective vendor or by the vendor. ❖ The small land was bought merely for speculation.

26Multiple Choice 0/ 1

Crime is different from quasi-delict because ❖ It concerns private interest. ❖ it cannot be compromised or settled by the parties. ❖ the quantum of proof is preponderance of evidence. ❖ the liability of the person responsible for the author of negligent act is direct and

primary.

27Multiple Choice 0/ 1

Which of the following contracts is void? ❖ Oral sale of a parcel of land ❖ Oral donation of a watch worth P3,500. ❖ A sale of land by an agent in a public instrument where his authority from the principal is oral. ❖ A relatively simulated contract.

28Multiple Choice 1/ 1

An offer becomes ineffective on any of the following grounds, except: ❖ Qualified or conditional acceptance of the offer, which becomes a counter-offer. ❖ Acceptance is communicated to the agent who made the offer on behalf of the principal. ❖ Death, civil interdiction, insanity or insolvency of either party before acceptance is conveyed. ❖ Subject matter becomes illegal or impossible before acceptance is communicated.

29Multiple Choice 1/ 1

Delay is impossible in which type of obligation? ❖ Determinate real obligation ❖ Positive personal obligation ❖ Negative personal obligation ❖ Generic real obligation.

30Multiple Choice 1/ 1

Which of the following is not covered by the Statute of Frauds? ❖ Sale of goods at a price not less than P500. ❖ Contract for piece of work ❖ Contract of sale which by its terms is not to be performed within a year from the

making thereof, ❖ Sale of real property

31Multiple Choice 1/ 1

The following are the ways by which innominate contracts are regulated, except: ❖ By the general principles of quasi-contracts and delicts. ❖ By the stipulation of the parties. ❖ By the customs of the place ❖ By rules governing the most analogous nominate contracts.

32Multiple Choice 1/ 1

Sam sold to Ben a lot through a deed of absolute sale duly acknowledged before Atty. Santos, a notary public. Ten days later, Sam sold the same lot to Carl, also through a deed of sale duly acknowledged before a different notary public. In the second sale, there was a stipulation exempting Sam from the obligation to answer for eviction. At the time of second sale, Carl was not aware of the sale made by Sam to the other and neither took physical possession of the lot. Subsequently, Carl learnt of the first sale and thereupon registered the second sale with the Register of Deeds and took actual possession of the land. Who is the rightful owner of the property? ❖ ❖ ❖ ❖

Ben Atty. Santos Sam Carl

33Multiple Choice 1/ 1

The following are the requisites before a contract entered into in fraud of creditors may be rescinded, except: ❖ There must be fraud, or at least, the intent to commit fraud to the prejudice of the creditor seeking rescission. ❖ There must be a credit existing after the celebration of the contract.

❖ The creditor cannot in any legal manner collect his credit. ❖ The object must not be legally in the possession of a third person in good faith.

34Multiple Choice 1/ 1

Dante is the owner of a house which is being verbally leased to Cardo for 4 years. Dante orally promised Cardo that the lease would be renewed, only to refuse it later. Can Cardo enforce his right that the contract be renewed after the expiration of thereof? ❖ ❖ ❖ ❖

No, because the oral assurance is unenforceable. No, because the oral assurance that the lease would be renewed is null and void. Yes, because the oral assurance is valid and enforceable. Yes, because the oral assurance is valid until annulled by the court.

35Multiple Choice 0/ 1

Dante, Dan, and Danilo are jointly and severally liable to Cardo in the amount of P900,000 evidenced by a negotiable promissory note. Cardo endorsed the note to Tristan, who in turn endorsed it to Danilo. In this case, ❖ The entire obligation is extinguished by compensation. ❖ The entire obligation is extinguished by confusion or merger. ❖ The obligation is partially extinguished as regards the share of Dante by way of confusion or merger. ❖ The obligation is partially extinguished as regards the share of Dante by way of compensation.

36Multiple Choice 0/ 1

Dante borrowed P50,000 from Cardo. To secure payment of the debt, Dante pledged and delivered his diamond ring to Cardo. Later, the diamond ring was found in the possession of Dante despite non-payment of debt. Which of the following is false? ❖ It is still indebted to Cardo in the amount of P50,000. ❖ It is presumed that the ring has been returned by Cardo. ❖ It is presumed that the pledge has been remitted by Cardo.

❖ It is presumed that payment has been made which explains the return of the ring to Dante.

37Multiple Choice 1/ 1

Gary sold his parcel of land to Larry for P5 million. After the sale, Larry gave Gary the right to repurchase the property within 12 years from the date of agreement granting the right to repurchase. Which of the following is correct? ❖ Gary cannot exercise the right because the contract is an absolute sale. ❖ Gary can exercise the right to repurchase within 12 years from the date of agreement. ❖ Gary can exercise the right to repurchase within 4 years from the date of agreement. ❖ Gary can exercise the right to repurchase within 10 years from the date of agreement.

38Multiple Choice 1/ 1

The following are the rights and remedies of a buyer in case of failure to develop the subdivision or condominium project, with the exception of: ❖ The buyer may at his option be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon. ❖ Previous payments made shall not be forfeited. ❖ The buyer may not pay succeeding installments. ❖ If the contract is cancelled, the buyer is entitled to a cash surrender value if the buyer had paid at least 2 years of installments.

39Multiple Choice 1/ 1

The ...