Bar Examination Questionnaire for Taxation Law Set A (1) A municipality may levy an annual ad valorem tax on real

property such as land, building, machinery, and other improvement only if (A) the real property is within the Metropolitan Manila Area. (B) the real property is located in the municipality. (C) the DILG authorizes it to do so. (D) the power is delegated to it by the province. (2) Anne Lapada, a student activist, wants to impugn the validity of a tax on text messages. Aside from claiming that the law adversely affects her since she sends messages by text, what may she allege that would strengthen her claim to the right to file a taxpayers s uit? (A) That she is entitled to the return of the taxes collected from her in case the court nullifies the tax measure. (B) That tax money is being extracted and spent in violation of the constitutionally guaranteed right to freedom of communication. (C) That she is filing the case in behalf of a substantial number of taxpayers. (D) That text messages are an important part of the lives of the people she represents. (3) There is no taxable income until such income is recognized. Taxable income is recognized when the (A) taxpayer fails to include the income in his income tax return. (B) income has been actually received in money or its equivalent. (C) income has been received, either actually or constructively. (D) transaction that is the source of the income is consummated. (4) Keyrand, Inc., a Philippine corporation, sold through the local stock exchange 10,000 PLDT shares that it bought 2 years ago. Keyrand sold the shares for P2 million and realized a net gain of P200,000.00. How shall it pay tax on the transaction? (A) It shall declare a P2 million gross income in its income tax return, deducting its cost of acquisition as an expense. (B) It shall report the P200,000.00 in its corporate income tax return adjusted by the holding period. (C) It shall pay 5% tax on the first P100,000.00 of the P200,000.00 and 10% tax on the remaining P100,000.00. (D) It shall pay a tax of one-half of 1% of the P2 million gross sales. (5) Amaretto, Inc., imported 100 cases of Marula wine from South Africa. The shipment was assessed duties and value-added taxes of P300,000 which Amaretto, Inc. immediately paid. The Bureau of Customs did not, however, issue the release papers of the shipment yet since the Food and Drug Administration (FDA) needed to test the suitability of the wine for human consumption. Is the Bureau of Customs at fault for refusing to release the shipment just as yet? (A) Yes, because the importation was already terminated as a result of the payment of the taxes due. (B) Yes, the Bureau of Customs is estopped from holding the release of the shipment after receiving the payment. (C) No, if the amount paid as duties and value-added taxes due on the importation was insufficient. (D) No, because the Bureau of Customs has not yer issued the legal permit for withdrawal pending the FDA's findings. (6) Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction? (A) Power to destroy theory (B) Lifeblood theory (C) Sumptuary theory (D) Symbiotic doctrine (7) The spouses Helena and Federico wanted to donate a parcel of land to their son Dondon who is getting married in December, 2011. The parcel of land has a zonal valuation of P420,000.00. What is the most efficient mode of donating the property? (A) The spouses should first donate in 2011 a portion of the property valued at P20,000.00 then spread the P400,000.00 equally for 2012, 2013, 2014 and 2015.

(B) Spread the donation over a period of 5 years by the spouses donating P100,000.00 each year from 2011 to 2015. (C) The spouses should each donate a P110,000.00 portion of the value of the property in 2011 then each should donate P100,000.00 in 2012. (D) The spouses should each donate a P100,000.00 portion of the value of the property in 2011, and another P100,000.00 each in 2012. Then, in 2013, Helena should donate the remaining P20,000.00. (8) Mia, a compensation income earner, filed her income tax return for the taxable year 2007 on March 30, 2008. On May 20, 2011, Mia received an assessment notice and letter of demand covering the taxable year 2007 but the postmark on the envelope shows April 10, 2011. Her return is not a false and fraudulent return. Can Mia raise the defense of prescription? (A) No. The 3 year prescriptive period started to run on April 15, 2008, hence, it has not yet expired on April 10, 2011. (B) Yes. The 3 year prescriptive period started to run on April 15, 2008, hence, it had already expired by May 20, 2011. (C) No. The prescriptive period started to run on March 30, 2008, hence, the 3 year period expired on April 10, 2011. (D) Yes. Since the 3-year prescriptive period started to run on March 30, 2008, it already expired by May 20, 2011. (9) Double taxation in its general sense means taxing the same subject twice during the same taxing period. In this sense, double taxation (A) violates substantive due process. (B) does not violate substantive due process. (C) violates the right to equal protection. (D) does not violate the right to equal protection. (10) The payor of passive income subject to final tax is required to withhold the tax from the payment due the recipient. The withholding of the tax has the effect of (A) a final settlement of the tax liability on the income. (B) a credit from the recipient's income tax liability. (C) consummating the transaction resulting in an income. (D) a deduction in the recipient's income tax return. (11) Guidant Resources Corporation, a corporation registered in Norway, has a 50 MW electric power plant in San Jose, Batangas. Aside from Guidant's income from its power plant, which among the following is considered as part of its income from sources within the Philippines? (A) Gains from the sale to an Ilocos Norte power plant of generators bought from the United States. (B) Interests earned on its dollar deposits in a Philippine bank under the Expanded Foreign Currency Deposit System. (C) Dividends from a two-year old Norwegian subsidiary with operations in Zambia but derives 60% of its gross income from the Philippines. (D) Royalties from the use in Brazil of generator sets designed in the Philippines by its engineers. (12) Tong Siok, a Chinese billionaire and a Canadian resident, died and left assets in China valued at P80 billion and in the Philippines assets valued at P20 billion. For Philippine estate tax purposes the allowable deductions for expenses, losses, indebtedness, and taxes, property previously taxed, transfers for public use, and the share of his surviving spouse in their conjugal partnership amounted to P15 billion. Tong's gross estate for Philippine estate tax purposes is (A) P20 billion. (B) P5 billion. (C) P100 billion. (D) P85 billion. (13) Anktryd, Inc., bought a parcel of land in 2009 for P7 million as part of its inventory of real properties. In 2010, it sold the land for P12 million which was its zonal valuation. In the same year, it incurred a loss of P6 million for selling another parcel of land in its inventory. These were the only transactions it had in its real estate business. Which of the following is the applicable tax treatment? (A) Anktryd shall be subject to a tax of 6% of P12 million. (B) Anktryd could deduct its P6 million loss from its P5 million gain. (C) Anktryd's gain of P5 million shall be subject to the holding period.

(D) Anktryd's P6 million loss could not be deducted from its P5 million gain. (14) Aplets Corporation is registered under the laws of the Virgin Islands. It has extensive operations in Southeast Asia. In the Philippines, Its products are imported and sold at a mark-up by its exclusive distributor, Kim's Trading, Inc. The BIR compiled a record of all the imports of Kim from Aplets and imposed a tax on Aplets net income derived from its exports to Kim. Is the BIR correct? (A) Yes. Aplets is a non-resident foreign corporation engaged in trade or business in the Philippines. (B) No. The tax should have been computed on the basis of gross revenues and not net income. (C) No. Aplets is a non-resident foreign corporation not engaged in trade or business in the Philippines. (D) Yes. Aplets is doing business in the Philippines through its exclusive distributor Kim's Trading. Inc. (15) In 2009, Spratz, Inc.s net profit before tax was P35 million while its operating expenses was P31 million. In 2010, its net profit before tax was P40 million and its operating expenses was P38 million. It did not declare dividends for 2009 and 2010. And it has no proposed capital expenditures for 2011 and the immediate future. May Spratz be subject to the improperly accumulated tax on its retained profits for 2009 and 2010? (A) Yes, since the accumulated amounts are reasonable for operations in relation to what it usually needed annually. (B) Yes, since the accumulation is not reasonably necessary for the immediate needs of the business. (C) No, because there is no showing that the taxpayer's 2009 and 2010 net profit before tax exceeded its paid-up capital. (D) No, because the taxpayer is not shown to be a publicly-listed corporation, a bank, or an insurance company. (16) The actual effort exerted by the government to effect the exaction of what is due from the taxpayer is known as (A) assessment. (B) levy. (C) payment. (D) collection. (17) Although the power of taxation is basically legislative in character, it is NOT the function of Congress to (A) fix with certainty the amount of taxes. (B) collect the tax levied under the law. (C) identify who should collect the tax. (D) determine who should be subject to the tax. (18) Passive income includes income derived from an activity in which the earner does not have any substantial participation. This type of income is (A) usually subject to a final tax. (B) exempt from income taxation. (C) taxable only if earned by a citizen. (D) included in the income tax return. (19) In 2010, Juliet Ulbod earned P500,000.00 as income from her beauty parlor and received P250,000.00 as Christmas gift from her spinster aunt. She had no other receipts for the year. She spent P150,000.00 for the operation of her beauty parlor. For tax purposes, her gross income for 2010 is (A) P750,000.00. (B) P500,000.00. (C) P350,000.00. (D) P600,000.00. (20) Exempted from donors taxation are gifts made (A) for the use of the barangay.

(B) in consideration of marriage. (C) to a school which is a stock corporation. (D) to a for-profit government corporation. (21) Federico, a Filipino citizen, migrated to the United States some six years ago and got a permanent resident status or green card. He should pay his Philippine income taxes on (A) the gains derived from the sale in California, U.S.A. of jewelry he purchased in the Philippines. (B) the proceeds he received from a Philippine insurance company as the sole beneficiary of life insurance taken by his father who died recently. (C) the gains derived from the sale in the New York Stock Exchange of shares of stock in PLDT, a Philippine corporation. (D) dividends received from a two year old foreign corporation whose gross income was derived solely from Philippine sources. (22) An example of a tax where the concept of progressivity finds application is the (A) income tax on individuals. (B) excise tax on petroleum products. (C) value-added tax on certain articles. (D) amusement tax on boxing exhibitions. (23) A corporation may change its taxable year to calendar or fiscal year in filing its annual income tax return, provided (A) it seeks prior BIR approval of its proposed change in accounting period. (B) it simultaneously seeks BIR approval of its new accounting period. (C) it should change its accounting period two years prior to changing its taxable year. (D) its constitution and by-laws authorizes the change. (24) What is the rule on the taxability of income that a government educational institution derives from its school operations? Such income is (A) subject to 10% tax on its net taxable income as if it is a proprietary educational institution. (B) Exempt from income taxation if it is actually, directly, and exclusively used for educational purposes. (C) subject to the ordinary income tax rates with respect to incomes derived from educational activities. (D) Exempt from income taxation in the same manner as government-owned and controlled corporations. (25) Which among the following reduces the gross estate (not the net estate) of a citizen of the Philippines for purposes of estate taxation? (A) Transfers for public use (B) Property previously taxed (C) Standard deduction of P1 million (D) Capital of the surviving spouse (26) Ka Pedring Matibag, a sole proprietor, buys and sells "kumot at kulambo" both of which are subject to value-added tax. Since he is using the calendar year as his taxable year, his taxable quarters end on the last day of March, June, September, and December. When should Ka Pedring file the VAT quarterly return for his gross sales or receipts for the period of June 1 to September 30? (A) Within 25 days from September 30 (B) Within 45 days from September 30 (C) Within 15 days from September 30 (D) Within 30 days from September 30 (27) In January 2011, the BIR issued a ruling that Clemen's vodka imports were not subject to increased excise tax based on his claim that his net retail price was only P200 per 750 milliliter bottle. This ruling was applied to his imports for May, June, and July 2011. In September 2011, the BIR revoked its ruling and assessed him for deficiency taxes respecting his May, June and July 2011 vodka imports because it

discovered that his net retail price for the vodka was P250 per bottle from January to September 2011. Does the retroactive application of the revocation violate Clemen's right to due process as a taxpayer? (A) Yes, since the presumption is that the BIR ascertained the facts before it made its ruling. (B) No, because he acted in bad faith when he claimed a lower net retail price than what he actually used. (C) No, since he could avail of remedies available for disputing the assessment. (D) Yes, since he had already acquired a vested right in the favorable BIR ruling. (28) Don Fortunato, a widower, died in May, 2011. In his will, he left his estate of P100 million to his four children. He named his compadre, Don Epitacio, to be the administrator of the estate. When the BIR sent a demand letter to Don Epitacio for the payment of the estate tax, he refused to pay claiming that he did not benefit from the estate, he not being an heir. Forthwith, he resigned as administrator. As a result of the resignation, who may be held liable for the payment of the estate tax? (A) Don Epitacio since the tax became due prior to his resignation. (B) The eldest child who would be reimbursed by the others. (C) All the four children, the tax to be divided equally among them. (D) The person designated by the will as the one liable. (29) On July 31, 2011, Esperanza received a preliminary assessment notice from the BIR demanding that she pays P180,000.00 deficiency income taxes on her 2009 income. How many days from July 31, 2011 should Esperanza respond to the notice? (A) 180 days. (B) 30 days. (C) 60 days. (D) 15 days. (30) The BIR could not avail itself of the remedy of levy and distraint to implement, through collection, an assessment that has become final, executory, and demandable where (A) the subject of the assessment is an income tax. (B) the amount of the tax involved does not exceed P100.00. (C) the corporate taxpayer has no other uncollected tax liability. (D) the taxpayer is an individual compensation income earner. (31) Alain Descartes, a French citizen permanently residing in the Philippines, received several items during the taxable year. Which among the following is NOT subject to Philippine income taxation? (A) Consultancy fees received for designing a computer program and installing the same in the Shanghai facility of a Chinese firm. (B) Interests from his deposits in a local bank of foreign currency earned abroad converted to Philippine pesos. (C) Dividends received from an American corporation which derived 60% of its annual gross receipts from Philippine sources for the past 7 years. (D) Gains derived from the sale of his condominium unit located in The Fort, Taguig City to another resident alien. (32) Income is considered realized for tax purposes when (A) it is recognized as revenue under accounting standards even if the law does not do so. (B) the taxpayer retires from the business without approval from the BIR. (C) the taxpayer has been paid and has received in cash or near cash the taxable income. (D) the earning process is complete or virtually complete and an exchange has taken place. (33) Which among the following circumstances negates the prima facie presumption of correctness of a BIR assessment? (A) The BIR assessment was seasonably protested within 30 days from receipt. (B) No preliminary assessment notice was issued prior to the assessment notice.

(C) Proof that the assessment is utterly without foundation, arbitrary, and capricious. (D) The BIR did not include a formal letter of demand to pay the alleged deficiency. (34) On March 30, 2005 Miguel Foods, Inc. received a notice of assessment and a letter of demand on its April 15, 2002 final adjustment return from the BIR. Miguel Foods then filed a request for reinvestigation together with the requisite supporting documents on April 25, 2005. On June 2, 2005, the BIR issued a final assessment reducing the amount of the tax demanded. Since Miguel Foods was satisfied with the reduction, it did not do anything anymore. On April 15, 2010 the BIR garnished the corporation's bank deposits to answer for the tax liability. Was the BIR action proper? (A) Yes. The BIR has 5 years from the filing of the protest within which to collect. (B) Yes. The BIR has 5 years from the issuance of the final assessment within which to collect. (C) No. The taxpayer did not apply for a compromise. (D) No. Without the taxpayers prior authority, the BIR action violated the Bank Deposit Secrecy Law. (35) Which among the following taxpayers is required to use only the calendar year for tax purposes? (A) Partnership exclusively for the design of government infrastructure projects considered as practice of civil engineering. (B) Joint-stock company formed for the purpose of undertaking construction projects. (C) Business partnership engaged in energy operations under a service contract with the government. (D) Joint account (cuentas en participacion) engaged in the trading of mineral ores. (36) Spanflex Intl Inc. received a notice of assessment from the BIR. It seasonably filed a protest with all the necessary supporting documents but the BIR failed to act on the protest. Thirty days from the lapse of 180 days from the filing of its protest, Spanflex still has not elevated the matter to the CTA. What remedy, if any, can Spanflex take? (A) It may file a motion to admit appeal if it could prove that its failure to appeal was due to the negligence of counsel. (B) It may no longer appeal since there is no BIR decision from which it could appeal. (C) It may wait for the final decision of the BIR on his protest and appeal it to the CTA within 30 days from receipt of such decision. (D) None. Its right to appeal to the CTA has prescribed. (37) Gerardo died on July 31, 2011. His estate tax return should be filed within (A) six months from filing of the notice of death. (B) sixty days from the appointment of an administrator. (C) six months from the time he died on July 31, 2011. (D) sixty days from the time he died on July 31, 2011. (38) Income from dealings in property (real, personal, or mixed) is the gain or loss derived (A) only from the cash sales of property. (B) from cash and gratuitous receipts of property. (C) from sale and lease of property. (D) only from the sale of property. (39) In March 2009, Tonette, who is fond of jewelries, bought a diamond ring for P750,000.00, a bracelet for P250,000.00, a necklace for P500,000.00, and a brooch for P500,000.00. Tonette derives income from the exercise of her profession as a licensed CPA. In October 2009, Tonette sold her diamond ring, bracelet, and necklace for only P1.25 million incurring a loss of P250,000.00. She used the P1.25 million to buy a solo diamond ring in November 2009 which she sold for P1.5 million in September 2010. Tonette had no other transaction in jewelry in 2010. Which among the following describes the tax implications arising from the above transactions? (A) Tonette may deduct his 2009 loss only from her 2009 professional income. (B) Tonette may carry over and deduct her 2009 loss only from her 2010 gain. (C) Tonette may carry over and deduct her 2009 loss from her 2010 professional income as well as from her gain. (D) Tonette may not deduct her 2009 loss from both her 2010 professional income and her gain.

(40) Anion, Inc. received a notice of assessment and a letter from the BIR demanding the payment of P3 million pesos in deficiency income taxes for the taxable year 2008. The financial statements of the company show that it has been suffering financial reverses from the year 2009 up to the present. Its asset position shows that it could pay only P500,000.00 which it offered as a compromise to the BIR. Which among the following may the BIR require to enable it to enter into a compromise with Anion, Inc.? (A) Anion must show it has faithfully paid taxes before 2009. (B) Anion must promise to pay its deficiency when financially able. (C) Anion must waive its right to the secrecy of its bank deposits. (D) Anion must immediately deposit the P500,000.00 with the BIR. (41) Real property owned by the national government is exempt from real property taxation unless the national government (A) transfers it for the use of a local government unit. (B) leases the real property to a business establishment. (C) gratuitously allows its use for educational purposes by a school established for profit. (D) sells the property to a government-owned non-profit corporation. (42) Dondon and Helena were legally separated. They had six minor children, all qualified to be claimed as additional exemptions for income tax purposes. The court awarded custody of two of the children to Dondon and three to Helena, with Dondon directed to provide full financial support for them as well. The court awarded the 6th child to Dondon's father with Dondon also providing full financial support. Assuming that only Dondon is gainfully employed while Helena is not, for how many children could Dondon claim additional exemptions when he files his income tax return? (A) Six children. (B) Five children. (C) Three children. (D) Two children. (43) Political campaign contributions are NOT deductible from gross income (A) if they are not reported to the Commission on Elections. (B) if the candidate supported wins the election because of possible corruption. (C) since they do not help earn the income from which they are to be deducted. (D) since such amounts are not considered as income of the candidate to whom given. (44) When a BIR decision affirming an assessment is appealed to the CTA, the BIR's power to garnish the taxpayer's bank deposits (A) is suspended to await the finality of such decision. (B) is suspended given that the CTA can reverse BIR decisions when prejudicial to the taxpayer. (C) is not suspended because only final decisions of the BIR are subject to appeal. (D) is not suspended since the continued existence of government depends on tax revenues. (45) Real property taxes should not disregard increases in the value of real property occurring over a long period of time. To do otherwise would violate the canon of a sound tax system referred to as (A) theoretical justice. (B) fiscal adequacy. (C) administrative feasibility. (D) symbiotic relationship. (46) The power to tax is the power to destroy. Is this always so? (A) No. The Executive Branch may decide not to enforce a tax law which it believes to be confiscatory. (B) Yes. The tax collectors should enforce a tax law even if it results to the destruction of the property rights of a taxpayer.

(C) Yes. Tax laws should always be enforced because without taxes the very existence of the State is endangered. (D) No. The Supreme Court may nullify a tax law, hence, property rights are not affected. (47) Jeopardy assessment is a valid ground to compromise a tax liability (A) involving deficiency income taxes only, but not for other taxes. (B) because of doubt as to the validity of the assessment. (C) if the compromise amount does not exceed 10% of the basic tax. (D) only when there is an approval of the National Evaluation Board. (48) Zygomite Minerals, Inc., a corporation registered and holding office in Australia, not operating in the Philippines, may be subject to Philippine income taxation on (A) gains it derived from sale in Australia of an ore crusher it bought from the Philippines with the proceeds converted to pesos. (B) gains it derived from sale in Australia of shares of stock of Philex Mining Corporation, a Philippine corporation. (C) dividends earned from investment in a foreign corporation that derived 40% of its gross income from Philippine sources. (D) interests derived from its dollar deposits in a Philippine bank under the Expanded Foreign Currency Deposit System. (49) As a general rule, within what period must a taxpayer elevate to the Court of Tax Appeals a denial of his application for refund of income tax overpayment? (A) Within 30 days from receipt of the Commissioners denial of his application for refund. (B) Within 30 days from receipt of the denial which must not exceed 2 years from payment of income tax. (C) Within 2 years from payment of the income taxes sought to be refunded. (D) Within 30 days from receipt of the denial or within two years from payment. (50) After the province has constructed a barangay road, the Sangguniang Panglalawigan may impose a special levy upon the lands specifically benefitted by the road up to an amount not to exceed (A) 60% of the actual cost of the road without giving any portion to the barangay. (B) 100% of the actual project cost without giving any portion to the barangay. (C) 100% of the actual project cost, keeping 60% for the province and giving 40% to the barangay. (D) 60% of the actual cost, dividing the same between the province and the barangay. (51) Celia donated P110,000.00 to her friend Victoria who was getting married. Celia gave no other gift during the calendar year. What is the donor's tax implication on Celias donation? (A) The P100,000.00 portion of the donation is exempt since given in consideration of marriage. (B) A P10,000.00 portion of the donation is exempt being a donation in consideration of marriage. (C) Celia shall pay a 30% donor's tax on the P110,000.00 donation. (D) The P100,000.00 portion of the donation is exempt under the rate schedule for donor's tax. (52) Levox Corporation wanted to donate P5 million as prize money for the world professional billiard championship to be held in the Philippines. Since the Billiard Sports Confederation of the Philippines does not recognize the event, it was held under the auspices of the International Professional Billiards Association, Inc. Is Levox subject to the donor's tax on its donation? (A) No, so long as the donated money goes directly to the winners and not through the association. (B) Yes, since the national sports association for billiards does not sanction the event. (C) No, because it is donated as prize for an international competition under the billiards association. (D) Yes, but only that part that exceeds the first P100,000.00 of total Levox donations for the calendar year. (53) A violation of the tariff and customs laws is the failure to (A) pay the customs duties and taxes and to comply with the rules on customs procedures.

(B) pay the customs duties and taxes or to comply with the rules on customs procedures. (C) pay the customs duties and taxes. (D) comply with the rules on customs procedures. (54) What is the effect on the tax liability of a taxpayer who does not protest an assessment for deficiency taxes? (A) The taxpayer may appeal his liability to the CTA since the assessment is a final decision of the Commissioner on the matter. (B) The BIR could already enforce the collection of the taxpayer's liability if it could secure authority from the CTA. (C) The taxpayer's liability becomes fixed and subject to collection as the assessment becomes final and collectible. (D) The taxpayer's liability remains suspended for 180 days from the expiration of the period to protest. (55) A non-stock, non-profit school always had cash flow problems, resulting in failure to recruit well-trained administrative personnel to effectively manage the school. In 2010, Don Leon donated P100 million pesos to the school, provided the money shall be used solely for paying the salaries, wages, and benefits of administrative personnel. The donation represents less than 10% of Don Leon's taxable income for the year. Is he subject to donor's taxes? (A) No, since the donation is actually, directly, and exclusively used for educational purposes. (B) Yes, because the donation is to be wholly used for administration purposes. (C) Yes, since he did not obtain the requisite NGO certification before he made the donation. (D) No, because the donation does not exceed 10% of his taxable income for 2010. (56) What is the tax base for the imposition by the province of professional taxes? (A) That which Congress determined. (B) The pertinent provision of the local Government Code. (C) The reasonable classification made by the provincial sanggunian. (D) That which the Dept. of Interior and Local Government determined. (57) There is prima facie evidence of a false or fraudulent return where the (A) tax return was amended after a notice of assessment was issued. (B) tax return was filed beyond the reglementary period. (C) taxpayer changed his address without notifying the BIR. (D) deductions claimed exceed by 30% the actual deductions. (58) The proceeds received under a life insurance endowment contract is NOT considered part of gross income (A) if it is so stated in the life insurance endowment policy. (B) if the price for the endowment policy was not fully paid. (C) where payment is made as a result of the death of the insured. (D) where the beneficiary was not the one who took out the endowment contract. (59) The excess of allowable deductions over gross income of the business in a taxable year is known as (A) net operating loss. (B) ordinary loss. (C) net deductible loss. (D) NOLCO. (60) No action shall be taken by the BIR on the taxpayers disputed issues until the taxpayer has paid the deficiency taxes (A) when the assessment was issued against a false and fraudulent return.

(B) if there was a failure to pay the deficiency tax within 60 days from BIR demand. (C) if the Regional Trial Court issues a writ of preliminary injunction to enjoin the BIR. (D) attributable to the undisputed issues in the assessment notice. (61) Is an article previously exported from the Philippines subject to the payment of customs duties? (A) Yes, because all articles that are imported from any foreign country are subject to duty. (B) No, because there is no basis for imposing duties on articles previously exported from the Philippines. (C) Yes, because exemptions are strictly construed against the importer who is the taxpayer. (D) No, if it is covered by a certificate of identification and has not been improved in value. (62) Prior to the enactment of the Local Government Code, consumer's cooperatives registered under the Cooperative Development Act enjoyed exemption from all taxes imposed by a local gove rnment. With the Local Government Codes withdrawal of exemptions, could these cooperatives continue to enjoy such exemption? (A) Yes, because the Local Government Code, a general law, could not amend a special law such as the Cooperative Development Act. (B) No, Congress has not by the majority vote of all its members granted exemption to consumers' cooperatives. (C) No, the exemption has been withdrawn to level the playing field for all taxpayers and preserve the LGUs' financial position. (D) Yes, their exemption is specifically mentioned among those not withdrawn by the Local Government Code. (63) Under the Tariff and Customs Code, abandoned imported articles becomes the property of the (A) government whatever be the circumstances. (B) insurance company that covered the shipment. (C) shipping company in case the freight was not paid. (D) bank if the shipment is covered by a letter of credit. (64) Ka Tato owns a parcel of land in San Jose, Batangas declared for real property taxation, as agricultural. In 1990, he used the land for a poultry feed processing plant but continued to declare the property as agricultural. In March 2011, the local tax assessor discovered Ka Tatos change of use of his land and informed the local treasurer who demanded payment of d eficiency real property taxes from 1990 to 2011. Has the action prescribed? (A) No, the deficiency taxes may be collected within five years from when they fell due. (B) No. The deficiency taxes for the period 1990 up to 2011 may still be collected within 10 years from March 2011. (C) Yes. More than 10 years had lapsed for the period 1990 up to 2000, hence the right to collect the deficiency taxes has prescribed. (D) Yes. More than 5 years had lapsed for the collection of the deficiency taxes for the period 1990 up to 2005. (65) Pierre de Savigny, a Frenchman, arrived in the Philippines on January 1, 2010 and continued to live and engage in business in the Philippines. He went on a tour of Southeast Asia from August 1 to November 5, 2010. He returned to the Philippines on November 6, 2010 and stayed until April 15, 2011 when he returned to France. He earned during his stay in the Philippines a gross income of P3 million from his investments in the country. For the year 2010, Pierres taxable status is that of (A) a non-resident alien not engaged in trade or business in the Philippines. (B) a non-resident alien engaged in trade or business in the Philippines. (C) a resident alien not engaged in trade or business in the Philippines. (D) a resident alien engaged in trade or business in the Philippines. (66) Lualhati Educational Foundation, Inc., a stock educational institution organized for profit, decided to lease for commercial use a 1,500 sq. m. portion of its school. The school actually, directly, and exclusively used the rents for the maintenance of its school buildings, including payment of janitorial services. Is the leased portion subject to real property tax? (A) Yes, since Lualhati is a stock and for profit educational institution. (B) No, since the school actually, directly, and exclusively used the rents for educational purposes. (C) No, but it may be subject to income taxation on the rents it receives.

(D) Yes, since the leased portion is not actually, directly, and exclusively used for educational purposes. (67) Apparently the law does not provide for the refund of real property taxes that have been collected as a result of an erroneous or illegal assessment by the provincial or city assessor. What should be done in such instance to avoid an injustice? (A) Question the legality of the no-refund rule before the Supreme Court. (B) Enact a new ordinance amending the erroneous or illegal assessment to correct the error. (C) Subsequent adjustment in tax computation and the application of the excess payment to future real property tax liabilities. (D) Pass a new ordinance providing for the refund of real property taxes that have been erroneously or illegally collected. (68) What should the BIR do when the prescriptive period for the assessment of a tax deficiency is about to prescribe but the taxpayer has not yet complied with the BIR requirements for the production of books of accounts and other records to substantiate the claimed deductions, exemptions or credits? (A) Call the taxpayer to a conference to explain the delay. (B) Immediately conduct an investigation of the taxpayer's activities. (C) Issue a jeopardy assessment coupled with a letter of demand. (D) Issue a notice of constructive distraint to protect government interest. (69) Money collected from taxation shall not be paid to any religious dignitary EXCEPT when (A) the religious dignitary is assigned to the Philippine Army. (B) it is paid by a local government unit. (C) the payment is passed in audit by the COA. (D) it is part of a lawmakers pork barrel. (70) Discriminatory duties may NOT be imposed upon articles (A) wholly manufactured in the discriminating country but carried by vessels of another country. (B) not manufactured in the discriminating country but carried by vessels of such country. (C) partly manufactured in the discriminating country but carried by vessels of another country. (D) not manufactured in the discriminating country and carried by vessels of another country. (71) The taxpayer seasonably filed his protest together with all the supporting documents. It is already July 31, 2011, or 180 days from submission of the protest but the BIR Commissioner has not yet decided his protest. Desirous of an early resolution of his protested assessment, the taxpayer should file his appeal to the Court of Tax Appeals not later than (A) August 31, 2011. (B) August 30, 2011. (C) August 15, 2011. (D) August 1, 2011. (72) Which of the following are NOT usually imposed when there is a tax amnesty? (A) Civil, criminal, and administrative penalties (B) Civil and criminal penalties (C) Civil and administrative penalties (D) Criminal and administrative penalties (73) Which among the following concepts of taxation is the basis for the situs of income taxation? (A) Lifeblood doctrine of taxation (B) Symbiotic relation in taxation (C) Compensatory purpose of taxation

(D) Sumptuary purpose of taxation (74) In "Operation Kandado," the BIR temporarily closed business establishments, including New Dynasty Corporation that failed to comply with VAT regulations. New Dynasty contends that it should not be temporarily closed since it has a valid and existing VAT registration, it faithfully issued VAT receipts, and filed the proper VAT returns. The contention may be rejected if the BIR investigation reveals that (A) the taxpayer has not been regularly filing its income tax returns for the past 4 years. (B) the taxpayer deliberately filed a false and fraudulent return with deliberate intention to evade taxes. (C) the taxpayer used falsified documents to support its application for refund of taxes. (D) there was an understatement of taxable sales or receipts by 30% or more for the taxable quarter. (75) The head priest of the religious sect Tres Personas Solo Dios, as the corporation sole, rented out a 5,000 sq. m. lot registered in its name for use as school site of a school organized for profit. The sect used the rentals for the support and upkeep of its priests. The rented lot is (A) not exempt from real property taxes because the user is organized for profit. (B) exempt from real property taxes since it is actually, directly, and exclusively used for religious purposes. (C) not exempt from real property taxes since it is the rents, not the land, that is used for religious purposes. (D) exempt from real property taxes since it is actually, directly, and exclusively used for educational purposes. Bar Examination Questionnaire for Civil Law Set A (1)When does a declaration of absence of a missing person take effect? (A) Immediately from the issuance of the declaration of absence. (B) 3 months after the publication of the declaration of absence. (C) 6 months after the publication of the declaration of absence. (D) 15 days from the issuance of the declaration of absence. (2) The authority that school administrators exercise over school children under their supervision, instruction, or custody is called (A) legal parental authority. (B) substitute parental authority. (C) ordinary parental authority. (D) special parental authority. (3) Can future inheritance be the subject of a contract of sale? (A) No, since it will put the predecessor at the risk of harm from a tempted buyer, contrary to public policy. (B) Yes, since the death of the decedent is certain to occur. (C) No, since the seller owns no inheritance while his predecessor lives. (D) Yes, but on the condition that the amount of the inheritance can only be ascertained after the obligations of the estate have been paid. (4) Upon the proposal of a third person, a new debtor substituted the original debtor wit hout the latters consent. The creditor accepted the substitution. Later, however, the new debtor became insolvent and defaulted in his obligation. What is the effect of the new debtors default upon the original debtor? (A) The original debtor is freed of liability since novation took place and this relieved him of his obligation. (B) The original debtor shall pay or perform the obligation with recourse to the new debtor. (C) The original debtor remains liable since he gave no consent to the substitution. (D) The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part. (5) Lennie bought a business class ticket from Alta Airlines. As she checked in, the manager downgraded her to economy on the ground that a Congressman had to be accommodated in the business class. Lennie suffered the discomfort and embarrassment of the downgrade. She

sued the airlines for quasi-delict but Alta Airlines countered that, since her travel was governed by a contract between them, no quasi-delict could arise. Is the airline correct? (A) No, the breach of contract may in fact be tortious as when it is tainted as in this case with arbitrariness, gross bad faith, and malice. (B) No, denying Lennie the comfort and amenities of the business class as provided in the ticket is a tortious act. (C) Yes, since the facts show a breach of contract, not a quasi-delict. (D) Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation between the parties. (6) Which of the following is an indispensable requirement in an action for "quieting of title" involving real property? The plaintiff must (A) be in actual possession of the property. (B) be the registered owner of the property. (C) have legal or equitable title to the property. (D) be the beneficial owner of the property. (7) X and Y were to marry in 3 months. Meantime, to express his affection, X donated a house and lot to Y, which donation X wrote in a letter to Y. Y wrote back, accepting the donation and took possession of the property. Before the wedding, however, Y suddenly died of heart attack. Can Ys heirs get the property? (A) No, since the marriage did not take place. (B) Yes, since all the requisites of a donation of an immovable are present. (C) No, since the donation and its acceptance are not in a public instrument. (D) Yes, since X freely donated the property to Y who became its owner. (8) Rene and Lily got married after a brief courtship. After one month, Lily discovered that while Rene presented himself as a macho man he was actually gay. He would not go to bed with her. He kept obscene magazines of nude men and always sought the company of handsome boys. What legal remedy does Lily have? (A) She can file an action for annulment of marriage on ground of fraud. (B) She can seek a declaration of nullity of the marriage based on Renes psychological incapacity. (C) She can go abroad and file for divorce in a country that can grant it. (D) She has none since she had the opportunity to examine the goods and freely entered into the marriage. (9) Lucio executed a simple deed of donation of P50 million on time deposit with a bank in favor of A, B, C, D, and E, without indicating the share of each donee. All the donees accepted the donation in writing. A, one of the donees, di ed. Will B, C, D, and E get As share in the money? (A) Yes, accretion will automatically apply to the joint-donees in equal shares. (B) Yes, since the donors intention is to give the whole of P50 million to the jointdonees in equal shares. (C) No, A"s share will revert to the donor because accretion applies only if the joint-donees are spouses. (D) No, As share goes to his heirs since the donation did not provide for reversion to donor. (10) Raul, Ester, and Rufus inherited a 10-hectare land from their father. Before the land could be partitioned, however, Raul sold his hereditary right to Raffy, a stranger to the family, for P5 million. Do Ester and Rufus have a remedy for keeping the land within their family? (A) Yes, they may be subrogated to Raffys right by reimbursing to him within the required time what he paid Raul. (B) Yes, they may be subrogated to Raffys right provided they buy him out before he registers the sale. (C) No, they can be subrogated to Raffys right only with his conformity. (D) No, since there was no impediment to Raul selling his inheritance to a stranger. (11) When one exercises a right recognized by law, knowing that he thereby causes an injustice to another, the latter is entitled to recover damages. This is known as the principle of (A) res ipsa loquitur. (B) damnum absque injuria.

(C) vicarious liability. (D) abuse of rights. (12) Which of the following is NOT a basis for rendering a disinheritance defective or imperfect? (A) Its cause comes from the guilt of a spouse in a legal separation case, the innocent-spouse having died. (B) The truth of its cause is denied and not sufficiently proved by evidence. (C) Its cause is not authorized by the law. (D) Its cause is not specified. (13) Manuel came to Manila and married Marianne. Unknown to Marianne, Manuel had been previously convicted in Palawan of theft and served time for it. After Marianne learned of his previous conviction, she stopped living with him. Can Marianne seek the annulment of the marriage based on Manuels nondisclosure of his previous crime? (A) No, since the assumption is that marriage forgives all past wrongs. (B) Yes, since the non-disclosure of that crime is the equivalent of fraud, which is a ground for annulment. (C) No, in case of doubt, the law must be construed to preserve the institution of marriage. (D) No, since Manuel already served the penalty for his crime. (14) Arthur and Helen, both Filipinos, got married and had 2 children. Arthur later worked in Rome where he acquired Italian citizenship. He got a divorce from Helen in Rome but, on returning to the Philippines, he realized his mistake, asked forgiveness of his wife, and resumed living with her. They had 2 more children. What is the status of their 4 children? (A) The children born before the divorce are legitimate but those born after it are not since Arthur got the divorce when he had ceased to be a Filipino. (B) The divorce rendered illegitimate the children born before it since the marriage that begot them had been nullified. (C) The children born before and after the divorce are all legitimate since Philippine law does not recognize divorce. (D) All the children are legitimate since they were born of the same father and mother. (15) Who can make a donation? (A) All persons who can enter into contracts and dispose of their property. (B) All persons who are of legal age and suffer from no civil interdiction. (C) All persons who can make a last will and testament. (D) All persons, whether natural or artificial, who own property. (16) The liability of the partners, including industrial partners for partnership contracts entered into in its name and for its account, when all partnership assets have been exhausted is (A) Pro-rata. (B) Joint. (C) Solidary. (D) Voluntary. (17) When can a missing person who left someone to administer his property be declared an absentee by the court? When he has been missing for (A) 2 years from the receipt of the last news about him. (B) 7 years from the receipt of the last news about him. (C) 10 years from the receipt of the last news about him. (D) 5 years from the receipt of the last news about him. (18) Which of the following claims against the debtor enjoys preference over the others with respect to his specific immovable property and real rights?

(A) Unpaid price of real property sold, upon the immovable property. (B) Mortgage credits recorded in the registry of property, upon the mortgaged real estate. (C) Taxes due, upon the land or building. (D) Expenses for the preservation and improvement of property, when the law authorizes reimbursement, upon the preserved or improved immovable. (19) When bilateral contracts are vitiated with vices of consent, they are rendered (A) rescissible. (B) void. (C) unenforceable. (D) voidable. (20) An agent, authorized by a special power of attorney to sell a land belonging to the principal succeeded in selling the same to a buyer according to the instructions given the agent. The agent executed the deed of absolute sale on behalf of his principal two days after the principal died, an event that neither the agent nor the buyer knew at the time of the sale. What is the standing of the sale? (A) Voidable. (B) Valid. (C) Void. (D) Unenforceable. (21) Spouses A and B leased a piece of land belonging to B's parents for 25 years. The spouses built their house on it worth P300,000.00. Subsequently, in a case that C filed against A and B, the court found the latter liable to C for P200,000.00. When the sheriff was attaching their house for the satisfaction of the judgment, A and B claimed that it was exempt from execution, being a family home. Is this claim correct? (A) Yes, because while Bs parents own the land, they agreed to have their daughter build her family home on it. (B) No, because there is no judicial declaration that it is a family home. (C) No, since the land does not belong to A and B, it cannot qualify as a family home. (D) Yes, because the A and Bs family actually lives in that house. (22) Solomon sold his coconut plantation to Aragon, Inc. for P100 million, payable in installments of P10 million per month with 6% interest per annum. Solomon married Lorna after 5 months and they chose conjugal partnership of gains to govern their property relations. When they married, Aragon had an unpaid balance of P50 million plus interest in S olomons favor. To whom will Aragons monthly payments go after the marriage? (A) The principal shall go to the conjugal partnership but the interests to Solomon. (B) Both principal and interests shall go to Solomon since they are his exclusive properties. (C) Both principal and interests shall go to the conjugal partnership since these become due after the marriage. (D) The principal shall go to Solomon but the interests to the conjugal partnership. (23) X and Y, although not suffering from any impediment, cohabited as husband and wife without the benefit of marriage. Following the birth of their child, the couple got married. A year after, however, the court annulled the marriage and issued a decree of annulment. What is the present status of the child? (A) Legitimated. (B) Illegitimate. (C) Natural child. (D) Legitimate. (24) When A and B married, they chose conjugal partnership of gains to govern their property relations. After 3 years, B succeeded in getting her marriage to A annulled on ground of the latters psychological incapacity. What liquidation procedure will they follow in disposing of their assets? (A) They will follow the rule governing the liquidation of a conjugal partnership of gains where the party who acted in bad faith forfeits his share in the net profits.

(B) Since the marriage has been declared void, the rule for liquidation of absolute community of property shall be followed. (C) The liquidation of a co-ownership applies since the annulment brought their property relation under the chapter on property regimes without marriage. (D) The law on liquidation of partnerships applies. (25) X and Y agreed verbally before their marriage (a) on the paternity of the illegitimate child of Y and (b) on the economic regime that will govern X and Ys property relations. Is the verbal agreement valid? (A) No, because a marriage settlement to be valid should be in writing. (B) Yes, since ante-nuptial agreements need not be in writing. (C) No, because a marriage settlement cannot include an agreement on the paternity of an illegitimate child. (D) Yes, since even if it is not a valid marriage settlement, it is a valid verbal contract. (26) Spouses X and Y have a minor daughter, Z, who needs support for her education. Both X and Y, who are financially distressed, could not give the needed support to Z. As it happens, Zs other relatives are financially capable of giving that support. From whom ma y Z first rightfully demand support? From her (A) grandfather. (B) brother. (C) uncle. (D) first cousin. (27) Fidel, a Filipino with fair complexion, married Gloria. Before the marriage, Gloria confessed to Fidel that she was two-month pregnant with the child of a black African who had left the country for good. When the child was born, Fidel could not accept it being too black in complexion. What is the status of the child? (A) Illegitimate, because Gloria confessed that the child is not Fidels. (B) Illegitimate, because by the color of its skin, the child could not possibly be that of Fidel. (C) Legitimate, because the child was born within a valid marriage. (D) Legitimate, because Fidel agreed to treat the child as his own after Gloria told him who the father was. (28) The husbands acts of forcibly ejecting his wife without just cause fr om the conjugal dwelling and refusing to take her back constitutes (A) desertion. (B) recrimination. (C) constructive abandonment. (D) de facto separation. (29) In his will, the testator designated X as a legatee to receive P2 million for the purpose of buying an ambulance that the residents of his Barangay can use. What kind of institution is this? (A) a fideicomissary institution. (B) a modal institution. (C) a conditional institution. (D) a collective institution. (30) X insured himself for P5 million, designating Y, his wife, as his sole beneficiary. The designation was irrevocable. A few years later, X had their marriage annulled in court on the ground that Y had an existing prior marriage. X subsequently died, Is Y entitled to the insurance benefits? (A) Yes, since the insurance was not dependent on the marriage. (B) Yes, since her designation as beneficiary was irrevocable. (C) No, Xs designation of Y is revoked by operation of law upon the annulment of their marriage based on Ys fault. (D) Yes, since without judicial revocation, Xs designation of Y remains valid and binding.

(31) May a spouse freely donate communal or conjugal property without the consent of the other? (A) Absolutely not, since the spouses co-own such property. (B) Yes, for properties that the family may spare, regardless of value. (C) Yes, provided the donation is moderate and intended for charity or family rejoicing. (D) Yes, in a donation mortis causa that the donor may still revoke in his lifetime. (32) The decedent died intestate leaving an estate of P10 million. He left the following heirs: a) Marlon, a legitimate child and b) Cecilia, the legal spouse. Divide the estate. (A) Marlon gets 1/4 and Cecilia gets 3/4. (B) Marlon gets 2/3 and Cecilia 1/3. (C) Marlon gets 1/2 and Cecilia gets 1/2. (D) Marlon gets 3/4 and Cecilia 1/4. (33) Contracts take effect only between the parties or their assigns and heirs, except where the rights and obligations arising from the contract are not transmissible by their nature, by stipulation, or by provision of law. In the latter case, the assigns or the heirs are not bound by the contracts. This is known as the principle of (A) Relativity of contracts. (B) Freedom to stipulate. (C) Mutuality of contracts. (D) Obligatory force of contracts. (34) A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples. What are the rights and obligations of the buyer? (A) He can accept all 6,000 apples and pay the seller at P20 per apple. (B) He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples. (C) He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them anyway. (D) He can cancel the whole transaction since the seller violated the terms of their agreement. (35) Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties could not agree which of five lots he owned Lino undertook to sell to Ramon. What is the standing of the contract? (A) Unenforceable. (B) Voidable. (C) Rescissible. (D) Void. (36) Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter about it. In any event, the deed of sale expressly stipulated that X was not liable for hidden defects. Does Y have the right to demand from X a reimbursement of what he spent to repair the engine plus damages? (A) Yes. X is liable whether or not he was aware of the hidden defect. (B) Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y. (C) No, because Y is in estoppel, having changed engine without prior demand. (D) No, because Y waived the warranty against hidden defects. (37) Acme Cannery produced sardines in cans known as "Sards." Mylene bought a can of Sards from a store, ate it, and suffered from poisoning caused by a noxious substance found in the sardines. Mylene filed a case for damages against Acme. Which of the following defenses will hold? (A) The expiry date of the "Sards" was clearly printed on its can, still the store sold and Mylene bought it.

(B) Mylene must have detected the noxious substance in the sardines by smell, yet she still ate it. (C) Acme had no transaction with Mylene; she bought the "Sards" from a store, not directly from Acme. (D) Acme enjoys the presumption of safeness of its canning procedure and Mylene has not overcome such presumption. (38) Fernando executed a will, prohibiting his wife Marina from remarrying after his death, at the pain of the legacy of P100 Million in her favor becoming a nullity. But a year after Fernandos death, Marina was so overwhelmed with love that she married another man . Is she entitled to the legacy, the amount of which is well within the capacity of the disposable free portion of Fernandos estate? (A) Yes, since the prohibition against remarrying is absolute, it is deemed not written. (B) Yes, because the prohibition is inhuman and oppressive and violates Marinas right s as a free woman. (C) No, because the nullity of the prohibition also nullifies the legacy. (D) No, since such prohibition is authorized by law and is not repressive; she could remarry but must give up the money. (39) X, the owner, constituted a 10-year usufruct on his land as well as on the building standing on it in Ys favor. After flood totally destroyed the building 5 years later, X told Y that an act of God terminated the usufruct and that he should vacate the land. Is X, the owner of the land, correct? (A) No, since the building was destroyed through no fault of Y. (B) No, since Y still has the right to use the land and the materials left on it. (C) Yes, since Y cannot use the land without the building. (D) Yes, since the destruction of the building without the Xs fault terminated the usufruct. (40) In gratitude, the grooms parents made a donation of a property in writing to the brides parents shortly before their childrens wedding. The donation was accepted. What is the nature of the donation? (A) It is an ordinary donation since it was not given to the bride or groom. (B) It is donation propter nuptias since it was given with the marriage in mind. (C) It is an indirect donation propter nuptias since the bride would eventually inherit the property from her parents. (D) It is a remunatory donation. (41) X and Y, both Filipinos, were married and resided in Spain although they intend to return to the Philippines at some future time. They have not executed any marriage settlements. What law governs their property relations? (A) They may choose between Spanish law and Philippine law. (B) Philippine law since they are both Filipinos. (C) No regime of property relations will apply to them. (D) Spanish law since they live in Spain. (42) Birth determines personality. Death extinguishes it. Under what circumstances may the personality of a deceased person continue to exist? (A) In case of re-appearance of a missing person presumed dead. (B) In protecting the works of a deceased under intellectual property laws. (C) In case of declaration of presumptive death of a missing spouse. (D) In the settlement of the estate of a deceased person. (43) Six tenants sued X, the landowner, for willfully denying them water for their farms, which water happened to flow from land under Xs control, his intention being to force them to leave his properties. Is X liable for his act and why? (A) No, because the tenants must be content with waiting for rainfall for their farms. (B) No, since X owns both the land and the water. (C) Yes, because the tenants farms have the natural right of access to water wherever it is located. (D) Yes, since X willfully caused injury to his tenants contrary to morals, good customs or public policy.

(44) Illegitimate brothers and sisters, whether of full or half-blood, are bound to support each other, EXCEPT when (A) the brother or sister who needs support lives in another place. (B) such brothers and sisters are not recognized by their father. (C) the brother or sister in need stops schooling without valid reason. (D) the need for support of a brother or sister, already of age, is due to the latter's fault. (45) Virgilio owned a bare and simple swimming pool in his garden. MB, a 7-year old child, surreptitiously entered the garden and merrily romped around the ledges of the pool. He accidentally tripped, fell into the pool, and drowned. MBs parents sued Virgilio fo r damages arising from their childs death, premised on the principle of "attractive nuisance". Is Virgilio liable for the death of MB? (A) No, the child was 7 years old and knew the dangers that the pool offered. (B) Yes, being an attractive nuisance, Virgilio had the duty to prevent children from coming near it. (C) No, since the pool was bare and had no enticing or alluring gadgets, floats, or devices in it that would attract a 7-year old child. (D) Yes, since Virgilio did not cover the swimming pool while not in use to prevent children from falling into it. (46) The term of a 5-year lease contract between X the lessor and Y the lessee, where rents were paid from month to month, came to an end. Still, Y continued using the property with Xs consent. In such a case, it is understood that they impliedly renewed the lease (A) from month to month under the same conditions as to the rest. (B) under the same terms and conditions as before. (C) under the same terms except the rent which they or the court must fix. (D) for only a year, with the rent raised by 10% pursuant to the rental control law. (47) Rex, a philanthropist, donated a valuable lot to the municipality on the condition that it will build a public school on such lot within 2 years from its acceptance of the donation. The municipality properly accepted the donation but did not yet build the public school after 2 years. Can Rex revoke the donation? (A) Yes, since the donation is subject to a resolutory condition which was not fulfilled. (B) No, but Rex is entitled to recover the value of the land from the municipality. (C) No, the transfer of ownership has been completed. (D) Yes, the donation is not deemed made until the suspensive condition has been fulfilled. (48) Illegitimate children, those not recognized by their biological fathers, shall use the surname of their (A) biological father subject to no condition. (B) mother or biological father, at the mothers discretion. (C) mother. (D) biological father unless he judicially opposes it. (49) Asiong borrowed P1 million from a bank, secured by a mortgage on his land. Without his consent, his friend Boyong paid the whole loan. Since Asiong benefited from the payment, can Boyong compel the bank to subrogate him in its right as mortgagee of Asiong's land? (A) No, but the bank can foreclose and pay Boyong back. (B) No, since Boyong paid for Asiongs loan without his approval. (C) Yes, since a change of creditor took place by novation with the banks consent. (D) Yes, since it is but right that Boyong be able to get back his money and, if not, to foreclose the mortgage in the manner of the bank. (50) Congress passed a law imposing taxes on income earned out of a particular activity that was not previously taxed. The law, however, taxed incomes already earned within the fiscal year when the law took effect. Is the law valid? (A) No, because laws are intended to be prospective, not retroactive. (B) No, the law is arbitrary in that it taxes income that has already been spent.

(C) Yes, since tax laws are the lifeblood of the nation. (D) Yes, tax laws are an exception; they can be given retroactive effect. (51) Rudolf borrowed P1 million from Rodrigo and Fernando who acted as solidary creditors. When the loan matured, Rodrigo wrote a letter to Rudolf, demanding payment of the loan directly to him. Before Rudolf could comply, Fernando went to see him personally to collect and he paid him. Did Rudolf make a valid payment? (A) No, since Rudolf should have split the payment between Rodrigo and Fernando. (B) No, since Rodrigo, the other solidary creditor, already made a prior demand for payment from Rudolf. (C) Yes, since the payment covers the whole obligation. (D) Yes, since Fernando was a solidary creditor, payment to him extinguished the obligation. (52) What happens to the property regimes that were subsisting under the New Civil Code when the Family Code took effect? (A) The original property regimes are immutable and remain effective. (B) Those enjoying specific regimes under the New Civil Code may adopt the regime of absolute community of property under the Family Code. (C) Those that married under the New Civil Code but did not choose any of its regimes shall now be governed by the regime of absolute community of property. (D) They are superseded by the Family Code which has retroactive effect. (53) The testator executed a will following the formalities required by the law on succession without designating any heir. The only testamentary disposition in the will is the recognition of the testator's illegitimate child with a popular actress. Is the will valid? (A) Yes, since in recognizing his illegitimate child, the testator has made him his heir. (B) No, because the non-designation of heirs defeats the purpose of a will. (C) No, the will comes to life only when the proper heirs are instituted. (D) Yes, the recognition of an illegitimate heir is an ample reason for a will. (54) A left B, his wife, in the Philippines to work in Egypt but died in that country after a years continuous stay. Two months after As death, B gave birth to a child, claiming it is As child. Who can assail the legitimacy of the child? (A) As other heirs apart from B. (B) The State which has interest in the welfare of overseas contract workers. (C) Any one who is outraged by Bs claim. (D) No one since A died. (55) QR and TS who had a marriage license requested a newly appointed Judge in Manila to marry them on the beach of Boracay. Since the Judge maintained Boracay as his residence, he agreed. The sponsors were all public officials. What is the status of the marriage. (A) Valid, since the improper venue is merely an irregularity; all the elements of a valid marriage are present. (B) Void, because the couple did not get local permit for a beach wedding. (C) Voidable, because the Judge acted beyond his territorial jurisdiction and is administratively liable for the same. (D) Void, because the Judge did not solemnize the marriage within the premises of his court. (56) X and Y, Filipinos, got married in Los Angeles, USA, using a marriage license issued by the Philippine consul in Los Angeles, acting as Civil Registrar. X and Y did not know that they were first cousins because their mothers, who were sisters, were separated when they were quite young. Since X did not want to continue with the relation when he heard of it, he left Y, came to the Philippines and married Z. Can X be held liable for bigamy? (A) No since Xs marriage to Y is void ab initio or did not exist. (B) No since X acted in good faith, conscious that public policy did not approve of marriage between first cousins. (C) Yes since he married Z without first securing a judicial declaration of nullity of his marriage to Y. (D) Yes since his first marriage to Y in Los Angeles is valid.

(57) Allan bought Billys property through Carlos, an agent empowered with a special power of attorney (SPA) to sell the same. When Allan was ready to pay as scheduled, Billy called, directing Allan to pay directly to him. On learning of this, Carlos, Billy's agent, told Allan to pay through him as his SPA provided and to protect his commission. Faced with two claimants, Allan consigned the payment in court. Billy protested, contending that the consignation is ineffective since no tender of payment was made to him. Is he correct? (A) No, since consignation without tender of payment is allowed in the face of the conflicting claims on the plaintiff. (B) Yes, as owner of the property sold, Billy can demand payment directly to himself. (C) Yes, since Allan made no announcement of the tender. (D) Yes, a tender of payment is required for a valid consignation. (58) X sold Y 100 sacks of rice that Y was to pick up from Xs rice mill on a particular date. Y did not, however, appear on the agreed date to take delivery of the rice. After one week, X automatically rescinded the sale without notarial notice to Y. Is the rescission valid? (A) Yes, automatic rescission is allowed since, having the character of movables and consumables, rice can easily deteriorate. (B) No, the buyer is entitled to a customary 30-day extension of his obligation to take delivery of the goods. (C) No, since there was no express agreement regarding automatic rescission. (D) No, the seller should first determine that Y was not justified in failing to appear. (59) The wife filed a case of legal separation against her husband on the ground of sexual infidelity without previously exerting earnest efforts to come to a compromise with him. The judge dismissed the case for having been filed without complying with a condition precedent. Is the dismissal proper? (A) No, efforts at a compromise will only deepen the wifes anguish. (B) No, since legal separation like validity of marriage is not subject to compromise agreement for purposes of filing. (C) Yes, to avoid a family feud that is hurtful to everyone. (D) Yes, since the dispute could have been settled with the parties agreeing to legal separation. (60) An Australian living in the Philippines acquired shares of stock worth P10 million in food manufacturing companies. He died in Manila, leaving a legal wife and a child in Australia and a live-in partner with whom he had two children in Manila. He also left a will, done according to Philippine laws, leaving all his properties to his live-in partner and their children. What law will govern the validity of the disposition in the will? (A) Australia law since his legal wife and legitimate child are Australians and domiciled in Australia. (B) Australian law since the intrinsic validity of the provisions of a will is governed by the decedents national law. (C) Philippine law since the decedent died in Manila and he executed his will according to such law. (D) Philippine law since the decedents properties are in the Philippines. (61) X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father. Unwilling to do so, Xs heirs filed an action for specific performance against Y. Will their action prosper? (A) No, after more than 6 years, the action to enforce the verbal agreement has already elapsed. (B) No, since the sale cannot under the Statute of Frauds be enforced. (C) Yes, since X bought the land and paid Y for it. (D) Yes, after full payment, the action became imprescriptible. (62) A court declared Ricardo, an old bachelor, an absentee and appointed Cicero administrator of his property. After a year, it was discovered that Ricardo had died abroad. What is the effect of the fact of his death on the administration of his property? (A) With Ricardo no longer an absentee but a deceased person, Cicero will cease to be administrator of his properties. (B) The administration shall be given by the court having jurisdiction over the intestate proceedings to a new administrator whom it will appoint. (C) Cicero automatically becomes administrator of Ricardos estate until judicially relieved. (D) Ciceros alienations of Ricardo's property will be set aside.

(63) Baldo, a rejected suitor, intimidated Judy into marrying him. While she wanted to question the validity of their marriage two years after the intimidation ceased, Judy decided in the meantime to freely cohabit with Baldo. After more than 5 years following their wedding, Judy wants to file a case for annulment of marriage against Baldo on ground of lack of consent. Will her action prosper? (A) Yes, the action for annulment is imprescriptible. (B) No, since the marriage was merely voidable and Judy ratified it by freely cohabiting with Baldo after the force and intimidation had ceased . (C) No, since the action prescribed 5 years from the date of the celebration of the marriage. (D) Yes, because the marriage was celebrated without Judy's consent freely given. (64) Is the wife who leaves her husband without just cause entitled to support? (A) No, because the wife must always be submissive and respectful to the husband. (B) Yes. The marriage not having been dissolved, the husband continues to have an obligation to support his wife. (C) No, because in leaving the conjugal home without just cause, she forfeits her right to support. (D) Yes, since the right to receive support is not subject to any condition. (65) In the order of intestate succession where the decedent is legitimate, who is the last intestate heirs or heir who will inherit if all heirs in the higher level are disqualified or unable to inherit? (A) Nephews and nieces. (B) Brothers and sisters. (C) State. (D) Other collateral relatives up to the 5th degree of consanguinity. (66) Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat docked in Subic. Before they could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall not exempt Roy and Carlos from their obligation. Owing to the loss of the motor boat, such obligation is deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary? (A) Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are entitled. (B) Solidary or joint upon the discretion of Sam. (C) Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat. (D) Joint since the conversion of their liability to one of indemnity for damages made it joint. (67) Joanne married James, a person with no known relatives. Through James' hard work, he and his wife Joane prospered. When James died, his estate alone amounted to P100 million. If, in his will, James designates Joanne as his only heir, what will be the free portion of his estate. (A) Joanne gets all; estate has no free portion left. (B) Joanne gets 1/2; the other half is free portion. (C) Joanne gets 1/3; the remaining 2/3 is free portion. (D) Joanne gets 1/4; the remaining 3/4 is free portion. (68) A warranty inherent in a contract of sale, whether or not mentioned in it, is known as the (A) warranty on quality. (B) warranty against hidden defects. (C) warranty against eviction. (D) warranty in merchantability. (69) The doctrine of stare decisis prescribes adherence to precedents in order to promote the stability of the law. But the doctrine can be abandoned (A) When adherence to it would result in the Governments loss of its case. (B) When the application of the doctrine would cause great prejudice to a foreign national.

(C) When necessary to promote the passage of a new law. (D) When the precedent has ceased to be beneficial and useful. (70) Ric and Josie, Filipinos, have been sweethearts for 5 years. While working in a European country where the execution of joint wills are allowed, the two of them executed a joint holographic will where they named each other as sole heir of the other in case either of them dies. Unfortunately, Ric died a year later. Can Josie have the joint will successfully probated in the Philippines? (A) Yes, in the highest interest of comity of nations and to honor the wishes of the deceased. (B) No, since Philippine law prohibits the execution of joint wills and such law is binding on Ric and Josie even abroad. (C) Yes, since they executed their joint will out of mutual love and care, values that the generally accepted principles of international law accepts. (D) Yes, since it is valid in the country where it was executed, applying the principle of "lex loci celebrationis." (71) ML inherited from his father P5 million in legitime but he waived it in a public instrument in favor of his sister QY who accepted the waiver in writing. But as it happened, ML borrowed P6 million from PF before the waiver. PF objected to the waiver and filed an action for its rescission on the ground that he had the right to MLs P5 million legitime as partial settlement of what ML owed him since ML has proved to be insolvent. Does PF, as creditor, have the right to rescind the waiver? (A) No, because the waiver in favor of his sister QY amounts to a donation and she already accepted it. (B) Yes, because the waiver is prejudicial to the interest of a third person whose interest is recognized by law. (C) No, PF must wait for ML to become solvent and, thereafter, sue him for the unpaid loan. (D) Yes, because a legitime cannot be waived in favor of a specific heir; it must be divided among all the other heirs. (72) While engaged to be married, Arnold and Josephine agreed in a public instrument to adopt out the economic regime of absolute community of property. Arnold acknowledged in the same instrument that Josephines daughter Mary, is his illegitimate child. But Josephine died before the marriage could take place. Does the marriage settlement have any significance? (A) None, since the instrument containing the marriage settlement is essentially void for containing an unrelated matter. (B) Yes, insofar as Arnold acknowledged Mary as his illegitimate child. (C) None, since the marriage did not take place. (D) Yes, if they acquired properties while living together as husband and wife. (73) Joseph, a 17-year old Filipino, married Jenny, a 21-year old American in Illinois, USA, where the marriage was valid. Their parents gave full consent to the marriage of their children. After three years, Joseph filed a petition in the USA to promptly divorce Jenny and this was granted. When Joseph turned 25 years, he returned to the Philippines and married Leonora. What is the status of this second marriage? (A) Void, because he did not cause the judicial issuance of declaration of the nullity of his first marriage to Jenny before marrying Leonora. (B) Valid, because Joseph's marriage to Jenny is void, he being only 17 years of age when he married her. (C) Valid, because his marriage to Leonora has all the elements of a valid marriage. (D) Void, because Joseph is still considered married to Jenny since the Philippines does not recognize divorce. (74) T died intestate, leaving an estate of P9,000,000. He left as heirs three legitimate children, namely, A, B, and C. A has two children, D and E. Before he died, A irrevocably repudiated his inheritance from T in a public instrument filed with the court. How much, if any, will D and E, as As children, get from Ts estate? (A) Each of D and E will get P1,500,000 by right of representation since their father repudiated his inheritance. (B) Each of D and E will get P2,225,000 because they will inherit from the estate equally with B and C. (C) D and E will get none because of the repudiation; "B" and "C" will get As share by right of accretion. (D) Each of D and E will get P2,000,000 because the law gives them some advantage due to the demise of "A". (75) No decree of legal separation can be issued (A) unless the childrens welfare is attended to first. (B) without prior efforts at reconciliation shown to be futile. (C) unless the court first directs mediation of the parties.

(D) without prior investigation conducted by a public prosecutor. (76) X, who was abroad, phoned his brother, Y, authorizing him to sell Xs parcel of land in Pasay. X sent the title to Y by courier service. Acting for his brother, Y executed a notarized deed of absolute sale of the land to Z after receiving payment. What is the status of the sale? (A) Valid, since a notarized deed of absolute sale covered the transaction and full payment was made. (B) Void, since X should have authorized agent Y in writing to sell the land. (C) Valid, since Y was truly his brother Xs agent and entrusted with the title needed to effe ct the sale. (D) Valid, since the buyer could file an action to compel X to execute a deed of sale. (77) In a true pacto de retro sale, the title and ownership of the property sold are immediately vested in the vendee a retro subject only to the resolutory condition of repurchase by the vendor a retro within the stipulated period. This is known as (A) equitable mortgage. (B) conventional redemption. (C) legal redemption. (D) equity of redemption. (78) A natural obligation under the New Civil Code of the Philippines is one which (A) the obligor has a moral obligation to do, otherwise entitling the obligee to damages. (B) refers to an obligation in writing to do or not to do. (C) the obligee may enforce through the court if violated by the obligor. (D) cannot be judicially enforced but authorizes the obligee to retain the obligors payment or performance. (79) The husband assumed sole administration of the familys mango plantation since his wife worked abroad. Subsequently, wit hout his wifes knowledge, the husband entered into an antichretic transaction with a company, giving it possession and management of the plantation with power to harvest and sell the fruits and to apply the proceeds to the payment of a loan he got. What is the standing of the contract? (A) It is void in the absence of the wifes consent. (B) It is void absent an authorization from the court. (C) The transaction is void and can neither be ratified by the wife nor authorized by the court. (D) It is considered a continuing offer by the parties, perfected only upon the wifes acceptance or the courts authorization. (80) When the donor gives donations without reserving sufficient funds for his support or for the support of his dependents, his donations are (A) Rescissible, since it results in economic lesion of more than 25% of the value of his properties. (B) Voidable, since his consent to the donation is vitiated by mindless kindness. (C) Void, since it amounts to wanton expenditure beyond his means. (D) Reducible to the extent that the donations impaired the support due to himself and his dependents. (81) Anne owed Bessy P1 million due on October 1, 2011 but failed to pay her on due date. Bessy sent a demand letter to Anne giving her 5 days from receipt within which to pay. Two days after receipt of the letter, Anne personally offered to pay Bessy in manager's check but the latter refused to accept the same. The 5 days lapsed. May Annes obligation be considered extinguished? (A) Yes, since Bessys refusal of the managers check, which is presumed funded, amounts to a satisfaction of the obligation. (B) No, since tender of payment even in cash, if refused, will not discharge the obligation without proper consignation in court. (C) Yes, since Anne tendered payment of the full amount due. (D) No, since a managers check is not considered legal tender in the Philippines. (82) The residents of a subdivision have been using an open strip of land as passage to the highway for over 30 years. The owner of that land decided, however, to close it in preparation for building his house on it. The residents protested, claiming that they became owners of the land through acquisitive prescription, having been in possession of the same in the concept of owners, publicly, peacefully, and continuously for more than 30 years. Is this claim correct?

(A) No, the residents have not been in continuous possession of the land since they merely passed through it in going to the highway. (B) No, the owner did not abandon his right to the property; he merely tolerated h is neighbors use of it for passage. (C) Yes, residents of the subdivision have become owners by acquisitive prescription. (D) Yes, community ownership by prescription prevails over private claims. (83) The owner of a thing cannot use it in a way that will injure the right of a third person. Thus, every building or land is subject to the easement which prohibits its proprietor or possessor from committing nuisance like noise, jarring, offensive odor, and smoke. This principle is known as (A) Jus vindicandi. (B) Sic utere tuo ut alienum non laedas. (C) Jus dispondendi. (D) Jus abutendi. (84) Janice and Jennifer are sisters. Janice sued Jennifer and Laura, Jennifers business partner for recovery of property wi th damages. The complaint did not allege that Janice exerted earnest efforts to come to a compromise with the defendants and that such efforts failed. The judge dismissed the complaint outright for failure to comply with a condition precedent. Is the dismissal in order? (A) No, since Laura is a stranger to the sisters, Janice has no moral obligation to settle with her. (B) Yes, since court should promote amicable settlement among relatives. (C) Yes, since members of the same family, as parties to the suit, are required to exert earnest efforts to settle their disputes before coming to court. (D) No, the family council, which would ordinarily mediate the dispute, has been eliminated under the Family Code. (85) X borrowed money from a bank, secured by a mortgage on the land of Y, his close friend. When the loan matured, Y offered to pay the bank but it refused since Y was not the borrower. Is the banks action correct? (A) Yes, since X, the true borrower, did not give his consent to Ys offer to pay. (B) No, since anybody can discharge Xs obligation to his be nefit. (C) No, since Y, the owner of the collateral, has an interest in the payment of the obligation. (D) Yes, since it was X who has an obligation to the bank. (86) The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his default in the performance of the conditions of the mortgage but before the sale of the mortgaged property or confirmation of the sale by the court, is known as (A) accion publiciana. (B) equity of redemption. (C) pacto de retro. (D) right of redemption. (87) When does the regime of conjugal partnership of gains begin to exist? (A) At the moment the parties take and declare each other as husband and wife before officiating officer. (B) At the time the spouses acquire properties through joint efforts. (C) On the date the future spouses executed their marriage settlements because this is the starting point of their marital relationship. (D) On the date agreed upon by the future spouses in their marriage settlements since their agreement is the law between them. (88) Josie, 18, married Dante, 25, without her parents knowledge and consent, and lived with him. After a year, Josie return ed to her parents home, complained of the unbearable battering she was getting from Dante, and expressed a desire to have h er marriage with him annulled. Who may bring the action? (A) Dante. (B) Her parents.

(C) Josie herself. (D) The State. (89) X, a married man, cohabited with Y, an unmarried woman. Their relation bore them BB, a baby boy. Subsequently, after X became a widower, he married Y. Was BB legitimated by that marriage? (A) Yes, since his parents are now lawfully married. (B) Yes, since he is an innocent party and the marriage rectified the wrong done him. (C) No, since once illegitimate, a child shall always remain illegitimate. (D) No, since his parents were not qualified to marry each other when he was conceived. (90) The presence of a vice of consent vitiates the consent of a party in a contract and this renders the contract (A) Rescissible. (B) Unenforceable. (C) Voidable. (D) Void. (91) Can common-law spouses donate properties of substantial value to one another? (A) No, they are only allowed to give moderate gifts to each other during family rejoicing. (B) No, they cannot give anything of value to each other to prevent placing their legitimate relatives at a disadvantage. (C) Yes, unlike the case of legally married spouses, such donations are not prohibited. (D) Yes, as long as they leave sufficient property for themselves and for their dependents. (92) X owed Y P1.5 million. In his will, X gave Y legacy of P1 million but the will provided that this legacy is to be set off against the P1.5 million X owed Y. After the set off, X still owed Y P500,000. Can Y still collect this amount? (A) Yes, because the designation of Y as legatee created a new and separate juridical relationship between them, that of testatorlegatee. (B) It depends upon the discretion of the probate court if a claim is filed in the testate proceedings. (C) No, because the intention of the testator in giving the legacy is to abrogate his entire obligation to Y. (D) No, because X had no instruction in his will to deliver more than the legacy of P1 million to Y. (93) Josie owned a lot worth P5 million prior to her marriage to Rey. Subsequently, their conjugal partnership spent P3 million for the construction of a house on the lot. The construction resulted in an increase in the value of the house and lot to P9 million. Who owns the house and the lot? (A) Josie and the conjugal partnership of gains will own both on a 50-50 basis. (B) Josie will own both since the value of the house and the increase in the propertys value is less than her lots value; but s he is to reimburse conjugal partnership expenses. (C) Josie still owns the lot, it being her exclusive property, but the house belongs to the conjugal partnership. (D) The house and lot shall both belong to the conjugal partnership, with Josie entitled to reimbursement for the value of the lot. (94) An action for reconveyance of a registered piece of land may be brought against the owner appearing on the title based on a claim that the latter merely holds such title in trust for the plaintiff. The action prescribes, however, within 10 years from the registration of the deed or the date of the issuance of the certificate of title of the property as long as the trust had not been repudiated. What is the exception to this 10-year prescriptive period? (A) When the plaintiff had no notice of the deed or the issuance of the certificate of title. (B) When the title holder concealed the matter from the plaintiff. (C) When fortuitous circumstances prevented the plaintiff from filing the case sooner. (D) When the plaintiff is in possession of the property.

(95) Conrad and Linda, both 20 years old, applied for a marriage license, making it appear that they were over 25. They married without their parents knowledge before an unsuspecting judge. After the couple has been in cohabitation for 6 years, Lindas parents filed an action to annul the marriage on ground of lack of parental consent. Will the case prosper? (A) No, since only the couple can question the validity of their marriage after they became 21 of age; their cohabitation also convalidated the marriage. (B) No, since Lindas parents made no allegations that earnest efforts have been made to come to a compromise with Conrad and Linda and which efforts failed. (C) Yes, since the marriage is voidable, the couple being below 21 years of age when they married. (D) Yes, since Lindas parents never gave their consen t to the marriage. (96) Pepito executed a will that he and 3 attesting witnesses signed following the formalities of law, except that the Notary Public failed to come. Two days later, the Notary Public notarized the will in his law office where all signatories to the will acknowledged that the testator signed the will in the presence of the witnesses and that the latter themselves signed the will in the presence of the testator and of one another. Was the will validly notarized? (A) No, since it was not notarized on the occasion when the signatories affixed their signatures on the will. (B) Yes, since the Notary Public has to be present only when the signatories acknowledged the acts required of them in relation to the will. (C) Yes, but the defect in the mere notarization of the will is not fatal to its execution. (D) No, since the notary public did not require the signatories to sign their respective attestations again. (97) Venecio and Ester lived as common-law spouses since both have been married to other persons from whom they had been separated in fact for several years. Hardworking and bright, each earned incomes from their respective professions and enterprises. What is the nature of their incomes? (A) Conjugal since they earned the same while living as husband and wife. (B) Separate since their property relations with their legal spouses are still subsisting. (C) Co-ownership since they agreed to work for their mutual benefit. (D) Communal since they earned the same as common-law spouses. (98) What is the prescriptive period for filing an action for revocation of a donation based on acts of ingratitude of the donee? (A) 5 years from the perfection of the donation. (B) 1 year from the perfection of the donation. (C) 4 years from the perfection of the donation. (D) Such action does not prescribe. (99) Before Karen married Karl, she inherited P5 million from her deceased mother which amount she brought into the marriage. She later used part of the money to buy a new Mercedes Benz in her name, which Karen and her husband used as a family car. Is the car a conjugal or Karens exclusive property? (A) It is conjugal property since the spouses use it as a family car. (B) It is Karens exclusive property since it is in her name. (C) It is conjugal property having been bought during the marriage. (D) It is Karens exclusive property since she bought it with her own money. (100) Because of Xs gross negligence, Y suffered injuries that resulted in the abortion of the foetus she carried. Y sued X for, among other damages, P1 million for the death of a family member. Is Y entitled to indemnity for the death of the foetus she carried? (A) Yes, since the foetus is already regarded as a child from conception, though unborn. (B) No, since Xs would not have known that the accident would result in Ys abortion. (C) No, since birth determines personality, the accident did not result in the death of a person. (D) Yes, since the mother believed in her heart that she lost a child.