Deck 8: Loans, Fraud, Liability, and Sale of Land

Question 1

Mr. Debtor executed a promissory note in favor of Mr. Creditor in the amount of ₱100, 000. The debt is secured by a pledge on a ring owned by Mr. Debtor. Which among the following is most likely correct?

A)If on the due date, Mr. Creditor delivers the note to Mr. Debtor without collecting the debt, there is an implied condonation if the note is a private instrument.
B)If the debt is condoned by Mr. Creditor, the pledge is not condoned.
C)If Mr. Creditor returns the thing pledged to Mr. Debtor, the pledge and the loan are deemed extinguish

Answer 1

If on the due date, Mr. Creditor delivers the note to Mr. Debtor without collecting the debt, there is an implied condonation if the note is a private instrument.

Question 2

For compensation to be proper, the following must be complied with. Which is the exception?

A)Both debts consist in a sum of money or of the same kind.
B)Both debts are due.
C)Both debts be liquidated and demandable.
D)Both parties are insolvent.

Answer 2

Both parties are insolvent.

Question 3

It is the substitution or change of an obligation by another, which extinguishes or modifies the first either changing its object or principal condition, or substituting another in place of the debtor, or subrogating a third in the right of the creditor.

A)accion subrogatoria
B)novation
C)accion pauliano
D)none of the above

Answer 3

novation

Question 4

Which among the following is not an essential element of an obligation?

A)Active and passive subjects.
B)Form of the obligation
C)Prestation
D)Juridical tie

Question 5

Mr. Oliveros, by virtue of a written agreement agreed to deliver to Mr. Santos a car on a specified date provided the latter pays the former ₱1 million.

A)The prestation is the car. Mr. Santos is the active subject. Mr. Oliveros is the passive subject and the juridical tie is the contract.
B)The active subject is Mr. Oliveros. the passive subject is Mr. Santos. the juridical tie is the law and the prestation is the giving of the car.
C)The active subject is Mr. Santos. the passive subject is Mr. Oliveros. the prestation is the delivery of the car and the juridical tie is law.
D)The passive subject is Mr. Oliveros. the active subject is Mr. Santos. the prestation is the delivery of the car and the juridical tie is the contract.

Question 6

When a party causes damage to another due to his negligent act and such damage is caused in the course of the performance of a contractual obligation, the latter is liable to the former on the basis of

A)culpa criminal
B)culpa extra contractual
C)culpa contractual
D)culpa aquiliana

Question 7

No. 1 - the same act of negligence of the defendant that causes injury to another may give rise to a liability based on culpa aquiliana and culpa criminal and the injured party may recover twice from the same act or omission of the defendant. No. 2 - When the defendant causes damage to the plaintiff through the formers fault or negligence, there being no contractual relationship between them, the basis of the defendant's liability is a quasi-contract.

A)Both statements are false.
B)Both statements are true.
C)Only No. 1 is true.
D)Only No. 2 is true.

Question 8

They are lawful, unilateral and voluntary acts that are based on the principle that no one shall be enriched or benefited at the expense of another.

A)Quasi-delicts
B)Quasi-contracts
C)Culpa contractual
D)None of the above

Question 9

The quasi-contract of negotiorum gestio requires the following. Which is the exception?

A)There must be an abandoned or neglected property or business.
B)Someone voluntary takes charge of that abandoned business or property.
C)The owner must consent to the management of his business or property by someone.
D)The owner has the obligation to reimburse the expenses of the person who takes charge of his business or property.

Question 10

Pedro receives a package via Federal Express. When he opened the package he realized that the same was delivered to him by mistake and that the real owner thereof is Pablo, his neighbor. The obligation of Pedro to give the package to Pablo arises from

A)law
B)contracts
C)moral obligations
D)solutio indebiti

Question 11

Pedro offered to sell to Marita a purported diamond ring which actually was a stone of inferior quality. Believing it to be a genuine diamond ring, Marita bought and paid for the ring. If later on, Marita discovers the misrepresentation, Marita may:

A)sue for damages alone because of dolo causante.
B)sue for rescission.
C)for annulment because of dolo incidente.
D)for annulment because of dolo causante.

Question 12

Pedro borrowed money from Jose, payable on November 26, 2005. On the due date of the obligation, Pedro failed to pay. On December 30, 2005, Pedro paid the debt.

A)Pedro is in default.
B)Pedro is not in default.
C)Pedro is liable for interest.
D)Pedro is liable for damages.

Question 13

A debt has a maturity date of November 1, 2004. Payment was made on November 1, 2005 but demand was made on June 1, 2005. If the debtor is made liable for interest, the interest shall commence to run on

A)November 1, 2004.
B)June 1, 2005.
C)The date the obligation was incurr

Question 14

Pedro promised to give Jose an orchard planted with mango trees on November 30, 2005. Before November 30, 2005, what right does Jose have over the orchard?

A)Jose has no right.
B)Jose has a personal right.
C)Jose has a real right.
D)Jose has both a personal and a real right.

Question 15

No. 1 - If a person obliged to do something fails to do it, the only remedy of the obligee is to demand for the payment of damages. No. 2 - If a person obliged to do something fails to do it, he may be compelled by court action to fulfill his obligation.

A)Both are true.
B)Only No. 1 is true.
C)Both are false.
D)Only No. 2 is true.

Question 16

Mr. Robles sold his only car to Mr. Roxas for ₱600,000. There was no agreed date for delivery and payment. The obligation of Mr. Robles as seller is:

A)to deliver when Mr. Roxas is ready to pay.
B)to deliver the car immediately because there is already a perfected contract.
C)to have the contract rescinded because no date is fixed for performance.
D)to deliver the car immediately because his obligation is pure.

Question 17

In order that fraud may make a contract void able:

A)It may be incidental but both parties should not be in pari delicto.
B)It may be serious and the parties must be in pari delicio.
C)It may be incidental but should have been employed by both parties.
D)It should be serious and should have not have been employed by both contracting parties.

Question 18

Gody obtained a loan from Eusebio in the amount of Ph₱10,000.00 payable on June 30, 2005 plus 10% interest. On January 2, 2005, Gody won Ph₱100, 000.00 in a bingo game and he offered to pay Ph₱10,000.00 to Eusebio. Eusebio refused to accept the payment offered by Gody. Which of the following statements is correct?

A)Eusebio can be compelled to accept the payment offered by Gody because the amount being offered is complete.
B)Eusebio can be compelled to accept the payment being offered if the interest will be reduced.
C)Gody cannot compel Eusebio to accept the amount offered by him because the period for payment has not yet arriv

Question 19

Which of the following statements is correct?

A)Negligence signifies the idea of delay in the fulfillment of an obligation.
B)Delay or default means the failure to perform the obligation on the date agreed upon by the parties.
C)Incidental fraud is one committed in the performance of an obligation.
D)Proper diligence of a good father of a family means extra-ordinary diligence.

Question 20

Which of the period in the following cases is intended for the benefit of the debtor?

A)Payable on December 31, 2006
B)Payable before December 31, 2006
C)Payable on or before December 31, 2006
D)All of the above

Question 21

While Mr. P was walking along a busy street, he slumped and suffered from symptoms of a heart attack, and lost consciousness. Mr. D, a heart specialist saw what happened and through his expertise saved the life of Mr. P. If sued for Mr. D's services.

A)Mr. P must pay on the basis of an implied contractual relationship.
B)Mr. P must pay under a quasi-contract.
C)Mr. P has no obligation to pay because he did not ask for Mr. D's services.
D)Mr. P has no obligation to pay because the services of Mr. D can be construed as a voluntary act and hence, a donation.

Question 22

S and B entered into a sale of a four-hectare land for ₱1 million. S prepared the Deed of Sale and with fraudulent intent and taking advantage of B'' failing eyesight changed the area of the land to reflect an area less than what had been agreed upon. The remedy of B upon discovery of the fraud is,

A)Annulment
B)Reformation of the contract
C)Rescission
D)Answer not given

Question 23

Which of the following statements is incorrect?

A)The full payment of the price is sufficient to make the buyer the owner of the thing sold.
B)In a sale, the full payment of the price is a suspensive condition for the seller to deliver.
C)Delivery of the thing sold is necessary to transfer ownership.
D)Delivery in a real contract is required not for transfer of ownership but for the perfection of the contract.

Question 24

On June 5, 2000, Jose Dizon was supposed to deliver to Ruben Samia a specified red car. There was no delivery however, on said date. On June 15, 2000, the garage of the car collapsed because of an earthquake and the car was totally destroyed. Is Jose Dizon liable?

A)No, because he could plead impossibility of performance due to a fortuitous event even if he is in default.
B)Yes, because Jose Dizon is in legal delay.
C)No, because there was no demand and the car was lost through a fortuitous event.
D)Yes, because there is a perfected contract.

Question 25

Seller wrote a letter to Buyer offering to sell a piece of land for ₱500,000. Seller gave Buyer two months to decide and pay the purchase price. Before the lapse of two months, Seller wrote Buyer that the price is now ₱700,000. Buyer insisted on an acceptance for ₱500,000. He wants to compel Seller to execute a deed of sale for the original offer of ₱500,000. May the Seller be compelled to honor the ₱500,000 offer?

A)No, because Buyer did not accept the original offer.
B)Yes, because two months have not yet elapsed.
C)Yes, because Seller is estoppel by his original letter.
D)Yes, because there was a meeting of the minds.