1. An incidental element of the contract a. Implied warranty against eviction b. Payment of interest in a loan c.

Delivery of the object in contract of pledge d. All of the above 2. The following are requisites of cause or consideration in a contract, except: a. It must be true b. It must not contrary to law c. It must exist d. It must expressly mentioned in the contract 3. Which of the following statement is not correct? a. The validity or compliance of the contract cannot be left to the will of the contracting parties. b. The determination of the performance may be left to a third person. c. The contracting parties are bound by the determination of performance by a third person from the moment a third person decided. d. The contracting parties are not bound by the determination of a third if it is evidently inequitable as when the third person acted in bad faith or under mistake. 4. Arnold worked for Bambi as Chinese intrpreter. Even without an express agreement as to compensation, Arnold is entitled to compensation because of: a. do ut facias b. do ut des c. facio ut facias d. facio ut des 5. B bought a car from M, a minor for P300,000. One month later, B discovered that M was a minor at the time of sale so he filed a complaint in court to annul the sale. Will the action prosper? a. No, the right to annul the sale is given to M. b. No, unless there is lesion of more than of the value of the property. c. Yes, B being a minor is incapacitated to enter into contract. d. Yes, B cannot file the action to annul the sale because he is a minor. 6. Annulment is a proper remedy under the followings, except: a. dolo causante b. serious and irresistable force is employed to obtain consent c. incidental fraud d. one of the parties is incapable of giving consent 7. Which of the following statement about cause is not correct?

a. Contract without cause is viod. b. Statement of a false cause in contract shall render them viod. c. Although the cause is not stated in the contract, it is presumed that it exists and is lawful d. when the motive of one contracting party is contrary to the law, the contract is viod 8. Crisostomo donated a parcel of land to Anthony worth 50,000 in a public instrument on December 24, 2012. Anthony accepted the same on the same day in a separate private instrument. When Anthony now seeks to register the land in the Registry of Property, the latter refused the registration because the acceptance of the donated property was not in a public instrument. In this case: a. Anthony can comple the Registry of Property to register the land under his name because the donation is valid. b. The Registry of property committed a grave abuse of discretion in refusing the registration of the donated property. c. Anthony cannot compel the Registry of property to register the land under his name because the donation is viod. d. The donation is valid but the registration may be refused on the ground that the accpetance was not in a public instrument. 9. A and B are the general partners, who contributed 800,000 and 400,000, respectively; C is a limited partner with a contribution of 600,000; and D is an industrial partner. The total assets of the partnership after its dissolution amounted to 620,000 but the partnership liabilities to X amounted to 860,000. Who shall be liable to X, out of their separate properties, for the payment of the balance, amounting to 240,000. a. A, B and C in proportion to their contribution; D- nothing b. A and B in proportion to their contribution; C and D nothing c. A, B, D for 80,000 each; C nothing d. A, B, C, D for 60,000 each 10. The following can demand true and full information of all things affecting partnership affairs from other partner, except: a. any partner b. partners assignee of interest c. legal representative of a deceased partner d. legal representative of any partner under legal disability 11. A and B were partners. A mortgaged his right in a certain specific partnership property. Later the firm creditor wanted to get said property. Who should prevail, the firm creditor or the mortgagee? a. the firm creditors, for the mortgaged in specific partnership property is viod, not having assigned his right b. the mortgagee because the mortgaged is perfectly valid c. the firm creditor is entitled to the property provided the mortgagee waive his right in the mortgaged property d. the mortgagee because the right ot specific partnership property is assignable.

12. A, B and C are partners in a business. A contributed 10,000, B contributed 5,000 and C his services only. After payment of partnership debts, what remains of the partnership assets is 6,000 only. In the absence of terms to the contrary, the share of C will be equal to: a. that of B b. 2,000 c. that of A d. nothing 13. In A, B, C and D partnership, only B did not deliver his agreed capital contribution in the form of a specific car and office equipment. The remedy available to A, B and D is: a. annulment of the partnership contract b. A, C and D to get back their contributions c. action for specific performance against B d. dissolution of the partnership 14. Which of these partners does not have direct access to partnership affairs like getting true and full information of all things affecting the partnership; asking for formal accounting; asking for dissolution and winding-up, etc: a. the original limited partner b. the assigned limited partner c. the substituted limited partner d. both B and C 15. Downy, Elmer, Fritz, and Grego formed a general partnership. Their written partnership agreement provided that the profits would be divided so that Downy would receive 40%, Elmer 30%, Fritz 20% and Grego, 10%. There was no provision for allocating losses. At the end of its first year, the partnership had losses of 800,000. Before allocating losses, the prtners capital account balances were: Downy 525,000; Elmer 450,000; Fritz 225,000; and Grego, 300,000. Grego refuses to make any further contribution to the partnership. Ignore tax effects. What would be Gregos share of the partnership losses? a. 200,000 b. 80,000 c. 160,000 d. cannot be determined 16. the rule is that the designation of the share of the partners in the profits and losses cannot be entrusted to only one of the partners but to all. However, the rule allows the designation of the share of the partners to be entrusted to a third person which can be questioned or impugned by the partners if such designation is manifestly inequitable. Within what time should action or question be brought? a. 1 month b. 2 months c. 3 months d. 6 months

17. which of the following contract of partnership is valid? a. a universal partnership of all present property between husband and wife b. a universal partnership of profits between a common law husband and wife c. a universal partnership of all present property between a private individual and a public officer d. a particular partnership between husband and wife 18. in general, to show the existence of a partnership, three of the following characteristics must be proved. Which is the exception? a. there was a joint interest in the profits b. there was an agreement in writing c. there was an intention to create a partnership d. there was a common or joint fund obtained from contributions 19. which of the following complies with the legal requirements for incorporation? Authorized Capital Stock a. 1,000,000 b. 500,000 c. 300,000 d. 64,000 Subscribed CS 500,000 300,000 100,000 16,000 Paid-up Capital 123,000 77,000 24,000 4,000

20. which of the following instance wherein non-voting shares is not allowed to vote: a. issuance of additional capital stock b. payment of bonded indebtedness c. mortgaging substantially all of the corporate property d. investment of corporate fund in another corporation not for primary purpose of the corporation 21. generally, a corporations article of incorporation must include all of the following except the a. name of the corporation b. number of the authorized shares c. name of each incorporators d. quorum requirements 22. When valid grounds exist, such as when a corporation is established to commit fraud, justify a wrong, defend a crime or defeat public convenience, the separate juridical personality of a corporation shall be disregarded and the stockholders and corporation shall be considered as the same. This is known as: a. Trust Fund Doctrine b. Doctrine of Piercing the Veil of Corporate Entity c. Doctrine of separate juridical personality d. Corporate opportunity theory 23. This corporation has for its basic purpose charity or charitable works?

a. Ecclesiastical corporation b. Eleemosynary corporation c. public corporation d. close corporation 24. D has an obligation to give his only cellphone to C on Aug.15,2012 but he failed to deliver it on the maturity date. On Aug.17, 2012 while D was on his way to deliver his only cellphone to C, X robbed him the cellphone by using force and intimidation. Is the obligation of D to C extinguised? a. No, because D was already in delay b. No, because the object of the obligation is a generic thing c. yes, because the cellphone was lost due to fortuitous event before he incurred delay d. no, because the cellphone was lost due to his own negligence. 25. the following are the remedies of the creditor to pursue his claims against the debtor, except: a. to exhaust debtors properties by attachment b. to compel the debtor to perform his obligation in positive personal obligation c. to exercise all the rights and bring all the actions of the debtor ( accion subrogatoria) d. to impugn the acts which the debtor may have done to defraud the creditors (accion pauliana) 26. the creditor acquires this right upon delivery of the subject matter. a. jus in re b. jus as rem c. jus in personam d. personal right 27. which of the following denotes joint liability a. solidaria b. in solidum c. juntos o separademente d. mancomunadamente 28. Amazed by the skill of X who can paint portraits using brushes inserted in his right armpit, Y entered unto a contract with the former to have his own portrait done and 50,000 as full payment therefore. After he has started the protrait but befor eits completion, X was subswipe speeding car while he was drunk and walking beside the way causing the doctors to have his right arm amputated this case what is the remedy of Y? a. nothing, as the service became impossible by reason of an act independent of the will of the debtor. b. equivalent performance in terms of damages c. specific performance by compelling X to go on painting Ys portrait d. substitute performance by allowing a third person to do his protrait with expenses therefore charged to X. 29. which of the following is not an obligation with a period

a. payable soonest b. an obligation payable little by little c. payable within 2 years from today d. none of the above 30. Mr.D owes Mr.C three million pesos. Then Mr.C and Mr.T a third person. Agree that the latter will substitute Mr.D in the payment of the debt. Thereafter, Mr.T became insolvent. a. Mr. C can revive his action to compel Mr. D to pay b. Mr. C can revive his action against Mr.D provided that the latter did not know of Mr.Ts insolvency or that Ts insolvency is of public or common knowledge c. Mr.C cannot revive his action agaist D because the law does not allow this in expromission d. correct answer not given 31. A mortgaged his car to B to secure his loan amounting to 200,000. Due to the negligence of the typist, the document signed by A and B shows that the car of A was sold to B for 120,000. Which of the following statements is correct? a. the contract of sale between A and B is viodable because there is mistake b. the contract of sale between A and B is relatively smulated. c. the contract of sale between A and B may not be reformed. d. the contract of sale between A and B is rescissible because of the damage suffered by A. 32. On April 20, 2012, Dante obliged himself to give Carlito 500,000 if Carlito will marry Sofia on or before December 10, 2012. Which of the following statements is not correct? a. the obligation of dante is demandable if carlito marries sofia on or before december 10, 2012 b. the obligation of dante is extinguished if it is already january 1, 2013 and carlito has not yet married sofia c. the obligation of dante is extinguised on december 1, 2012 if sofia dies on the said date and carlito has not yet married sofia d. the obligation is demandable if carlito marries sofia on december 15. 2012 33. D owes C the amount of 1350 payable on September 30, 2012. On September 8,2012, C purchased some grocery items from the store of D on credit amounting to 1350, payable on September 30,2012. On the maturity date, their respective obligations are extinguised by: a. dation en pago b. implied novation c. compensation d. confusion 34. a situation where there is a payment of an obligation by mistake or unilateral and voluntary act of managing of the property or business of another without the owners consent is known as: a. implied contract of agency b. negotiorum gestio c. soutio indebiti

d. quasi contract 35. S entered into a written contract with B for the sale of his car at the price of 400,000. Subsequently, T told S that the purchase price is very low as he can demand a price of at least 650,000. S now wants to increase the purchase price of atleast 650,000. This cannot be done by S because of what principle of contract? a. mutuality of contract b. relativity of contract c. consensuality of contract d. freedom of contract Answer Key: BDCDA CDCCB BDCBB CDBBB DBBCB ADADC CDCDA