Finals Review

Question 1

Alyanna asked her close friend, Angela, to buy some groceries for her in the supermarket. Was there an innominate contract between them? If yes, what type?

a.Yes, there was an innominate contract of do ut facias between Alyanna and Angela.

b.Yes, there was an innominate contract of facio ut facias between Alyanna and Angela.

c.No, there was a nominate contract of agency between Alyanna and Angela.

d.No, there was a nominate contract of sale between Alyanna and Angela.

Answer 1

C. There was a nominate contract of agency between Alyanna and Angela.

Question 2

Victoria opened a savings bank account with BPI. She made an initial deposit of PhP100,000. Part of the bank opening forms that he was required to sign when she opened the account was a Holdout Agreement which provided that should she incur any liability or obligation to the bank, the bank shall have the right to immediately and automatically take over her savings account deposit. After she opened her deposit account, the BPI discovered a scam wherein the funds in the account of another depositor in the bank was withdrawn by an impostor. BPI suspected Victoria to be the impostor, and filed a criminal case of estafa against her. While the case was still pending with the Prosecutor’s office, the bank took over Victoria’s savings deposit on the basis of the Holdout Agreement. What kind of contract is created when a depositor opens a deposit account with a bank?

a.Mutuum

b.Commodatum

c.Simple loan

d.A and B

e.A and C

Answer 2

e. A and C

Question 3

In the previous case, did BPI have the right to take over Victoria’s bank deposit?

a.Yes. The BPI has the right to take over Victoria’s bank deposit since there is a Holdout Agreement.

b.Yes. The BPI has the right to take over Victoria’s bank deposit since there is an obligation arising from delict.

c.No. The BPI has no right to take over Victoria’s bank deposit since a Holdout Agreement is prohibited by law for being unjust.

d. No. The BPI has no right to take over Victoria’s bank deposit since the Victoria’s case is still pending.

Answer 3

d. No. The BPI has no right to take over Victoria’s bank deposit since the Victoria’s case is still pending.

Question 4

Ronald sold a large parcel of land in Cebu to Arceli for P100 million payable in annual installments over a period of ten (10) years, but title will remain with Ronald until the purchase price is fully paid. To enable Arceli to pay the price, Ronald gave her a power-of-attorney authorizing her to subdivide the land, sell the individual lots, and deliver the proceeds to Ronald, to be applied to the purchase price. Five (5) years later, Ronald revoked the power of attorney and took over the sale of the subdivision lots himself. What is the status of the revocation?

a.The revocation is valid because the principal may revoke the agency at will.

b.The revocation is invalid because it was not written.

c.The revocation is invalid because a bilateral contract depends upon the agency.

d.The revocation is invalid because the agency is the means of fulfilling an obligation already contracted.

Answer 4

d.The revocation is invalid because the agency is the means of fulfilling an obligation already contracted.

Question 5

The borrower in a contract of loan or mutuum must pay interest to the lender

a.As a matter of course
b.If there is an agreement in writing to the effect
c.If the amount borrowed is very large
d.If the lender so demands at the maturity date

Answer 5

b. If there is an agreement in writing to the effect

Question 6

A contract whereby one person transfers the ownership of non-fungible things to another with an obligation on the part of the latter to give things of the same kind, quality and quantity.

a.Mutuum
b.Loan
c.Barter
d.Commodatum

Answer 6

c. Barter

Question 7

A juridical relation known as negotiorum gestio takes place

a.When a person voluntarily takes charge of another’s abandoned business or property without the owner’s consent.
b.When something is received and there is no right to demand it and it was delivered by mistake.
c.When a person is appointed by a court to take the property or business of another.
d.None of the above

Answer 7

a. When a person voluntarily takes charge of another’s abandoned business or property without the owner’s consent.

Question 8

Statement No. 1: In solutio indebiti, the contract of the parties is the basis for damages in case of non-performance.Statement No. 2: “Dolo”, as a ground for awarding damages, is the deliberate intention to cause damage or injury to another person.

a. Both statements are true.

b. Both statements are false.

c. Statement No. 1 is true but statement no. 2 is false.

d. Statement No. 1 is false but statement no. 2 is true.

Answer 8

d. Statement No. 1 is false but statement no. 2 is true.

Question 9

A contract which is both a principal and a real contract is

a.Mortgage

b.Pledge

c.Lease

d.Antichresis

e.Mutuum

Answer 9

e.Mutuum

Question 10

A contract of precarium pertains to

a.Commodatum

b.Mutuum

c.Guaranty

d.Suretyship

Answer 10

a.Commodatum

Question 11

In the following contract/s, ownership passes to the other party.

a.Mutuum

b.Commodatum

c.Deposit

d.A and B

e.A and C

Answer 11

a.Mutuum

Question 12

The delivery of first edition stamps or newly minted coins or specially printed paper money, for purposes of exhibition, gives rise to the obligation to return the very same property, thus, making the contract one of _________.

a.Commodatum

b.Mutuum

c.Guaranty

d.Suretyship

Answer 12

a.Commodatum

Question 13

Cruz lent Jose his car until Jose finished his Bar exams. Soon after Cruz delivered the car, Jose brought it to Mitsubishi Cubao for maintenance check-up and incurred costs of P8,000. Seeing the car’s peeling and faded paint, Jose also had the car repainted for P10,000. Answer the two questions below based on these common facts.After the bar exams, Cruz asked for the return of his car. Jose said he would return it as soon as Cruz has reimbursed him for the car maintenance and repainting costs of P 18,000. Is Jose’s refusal justified?

a.No, Jose’s refusal is not justified. In this kind of contract, Jose is obliged to pay for all the expenses incurred for the preservation of the thing loaned.

b.Yes, Jose’s refusal is justified. He is obliged to pay for all the ordinary and extraordinary expenses, but subject to reimbursement from Cruz.

c.Yes, Jose’s refusal is justified. The principle of unjust enrichment warrants the reimbursement of Jose’s expenses.

d.All of the above

e.None of the above

Answer 13

e.None of the above

Question 14

Amador obtained a loan of P300,00.00 from Basilio payable on March 25, 2012, as security for the payment of his loan, Amador constituted a mortgage on his residential house and lot in Basilio’s favor. Cacho, a good friend of Amador, guaranteed and obligated himself to pay Basilio, in case Amador fails to pay his loan at maturityIf Amador sells his residential house and lot to Diego, can Basilio foreclose the real estate mortgage (REM)

a. Yes, Basilio can foreclose the real estate mortgage because REM creates a real right that attaches to the property

b. Yes, Basilio can foreclose the REM. It is binding upon Diego as the mortgage is embodied in a public instrument

c. No, Basilio cannot foreclose the REM. The sale confers ownership on the buyer Diego, who must therefore consent

d. No, Basilio cannot foreclose the REM. To deprive the new owner of ownership and possession is unjust and inequitable.

Answer 14

a. Yes, Basilio can foreclose the real estate mortgage because REM creates a real right that attaches to the property

Question 15

Asiong borrowed P1M 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 back can foreclose and pay Boyong back

b. No, since Boyong paid Asiong’s loan without his approval

c. Yes, since a change of creditor took place by novation with the bank’s 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

Answer 15

b. No, since Boyong paid Asiong’s loan without his approval

Question 16

The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his default in performance of the condition of the mortgage but before the sale of the mortgaged property or confirmation of the sale of the court, is known as_______.

a. accion publiciana

b. equity of redemption

c. pacto de retro

d. right of redemption

Answer 16

b. equity of redemption

Question 17

X, at Y’s request, executed a Real Estate Mortgage (REM) on his (X’s) land to secure Y’s loan from Z. Z successfully foreclosed the REM when Y defaulted on the loan but half of Y’s obligation remained unpaid. May Z sue X to enforce his right to the deficiency?

a. Yes, but solidarily with Y

b. Yes, since X’s is deemed to warrant that his land would cover the whole obligation

c. No, since it is the buyer at the auction sale who should answer for the deficiency

d. No, because X is not Z’s debtor

Answer 17

d. No, because X is not Z’s debtor

Question 18

Which phrase best complete the statement – when a debt is secured by a REM, upon default by the debtor, __________

a. the only remedy of the creditor is to foreclose the real estate mortgage

b. another remedy is filing an action for collection and then foreclose, if collection is not enough

c. the creditor can foreclose the mortgage and demand collection for any deficiency

d. none of the above

Answer 18

c. the creditor can foreclose the mortgage and demand collection for any deficiency

Question 19

On X’s failure to pay his loan to ABC Bank, the latter foreclosed the REM he executed in his favor. The auction sale was set for December 1, 2010 with the notice of sale published as the law required. The sale was however, cancelled when December 1, 2010 was declared a holiday and rescheduled to January 10, 2011 without republication of notice. The auction sale then proceeded on the new date. Under the circumstance, the auction sale is______.

a. rescissible

b. unenforceable

c. void

d. voidable

Answer 19

c. void

Question 20

A contract of antichresis is always

a. a written contract

b. a contract with a stipulation that the debt will be paid through receipt of the fruits of immovable

c. it involves the payment of interests, if owing

d. all of the above

e. letters a and b

Answer 20

d. all of the above

Question 21

Which of the phrase best completes the statement – Under the PPSA, a security interest may be constituted to secure __________

a. obligation both present and future

b. obligation existing at the time the security agreement is constituted

c. future obligations only

d. past obligations only

Answer 21

b. obligation existing at the time the security agreement is constituted

Question 22

X constituted a security agreement on a car (valued at P1M) to secure a P500,000 loan. For the security agreement to be valid, X should have

a. the right mortgage the car to the extent of half of its value b ownership of the car

b. Ownership of the car

c. unqualified free disposal of his car

d. registered the car in his name

Answer 22

c. unqualified free disposal of his car

Question 23

Continuing guaranty or suretyship is

a. one which is limited only to a single transaction

b. one which is intended to provide security with respect to future transactions

c. one which can exist without a valid obligation

d. none of the above

Answer 23

b. one which is intended to provide security with respect to future transactions

Question 24

Which of the following is a principle under quasi- delicts?

a. Abuse of rights

b. Unjust enrichment

c. Liability without fault

d. All of the above

e. None of the above

Answer 24

d. All of the above

Question 25

Before going to her school, Sally stopped by a 7-11 store and bought some iced coffee and croissant. After getting into her car, she immediately maneuvered to reverse and started backing her car up without turning on the hazard lights and also without looking at her rearview mirror. Suddenly, she heard a loud noise from the back and a man immediately knocked on her car window and asked her to come down. What kind of tort did Sally commit?

a. Intentional Torts

b. Negligence Torts

c. Human Relations tort

d. None of the above

Answer 25

b. Negligence Torts

Question 26

In an action for quasi-delict, which among the following may not be held liable?

a. Minor

b. Appointive officials of the government

c. Private corporation

d. Insane person

e. None of the above

Answer 26

e. None of the above

Question 27

A collision occurred at EDSA between a motorcycle and a sedan. The police report stated that the motorcycle was hit on its right side when it swerved into the lane being traversed by the sedan which was over-speeding. Due to the collision, the motorcycle toppled and its driver’s left leg was crushed resulting in a fracture. As the lawyer of the motorcycle driver, on what liability will you base your claim against the sedan driver?

a. Culpa contractual

b. Culpa criminal

c. Culpa aquiliana

d. None of the above

Answer 27

c. Culpa aquiliana

Question 28

While a taxi driver was driving along Candaba Road, he saw an SUV that swerved into his lane to avoid hitting a child that suddenly crossed the road. Although the taxi driver saw the SUV enter his lane, he did not do anything to avoid any accident. What would be the basis of the liability if in case an accident happens due to the inaction of the taxi driver?

a. Doctrine of contributory negligence

b. Doctrine of imputed negligence

c. Doctrine of last clear chance

d. Doctrine of res ipsa loquitur

e. Proximate cause

Answer 28

c. Doctrine of last clear chance

Question 29

Which of the following can an action of negligence be based on?

a. Destruction of the parked vehicle hit by the plaintiff in order to avoid a head-on collision with a vehicle in the opposite direction that was trying to overtake and showed no signs of slowing down.

b. A caretaker being bitten by an animal under his custody and control.

c. A person who fell in an excavation site in the street where he passed on almost everyday and had knowledge of the presence and location of the excavation.

d. A business owner who, in the middle of a typhoon, went to his store, during a flood, to protect his merchandise and died as a result of electrocution brought by an electric wire of defendant’s electric company The electric wire being the grounded and disconnected lines hanging from the posts to the ground that was seen by the electric engineer of electric company during an inspection tour prior to the typhoon.

e. All of the above

Answer 29

d. A business owner who, in the middle of a typhoon, went to his store, during a flood, to protect his merchandise and died as a result of electrocution brought by an electric wire of defendant’s electric company The electric wire being the grounded and disconnected lines hanging from the posts to the ground that was seen by the electric engineer of electric company during an inspection tour prior to the typhoon.

Question 30

A conclusive presumption of negligence arises when:

a. An animal causes damage.

b. A thing thrown from a building causes damage to another.

c. The driver involved in a vehicular mishap had been found guilty of violating traffic regulations at least twice within the next preceding two months.

d. The driver, at the time of the mishap, was violating any traffic regulation.

e. None of the above

Answer 30

e. None of the above

Question 31

Read the following statements:

I. Actual and compensatory damages shall cover only the value of the loss suffered.

II. The sentimental value of property, real or personal, may not be considered in the adjudication of moral damages.

III. Nominal damages are awarded to indemnify the loss suffered.

IV. Actual damages cover loss or impairment of earning capacity of temporary or permanent personal injury and not injury to plaintiffs’ business.

a. Statements I and II are true.

b. Statements II and IV are false.

c. Statements I and III are true.

d. Statements III and IV are false.

e. None of the statements are true.

Answer 31

e. None of the statements are true.

Question 32

Read the following statements:

I. Temperate or moderate damages may be awarded together with nominal and compensatory damages.

II. In case the breach of the contract was not one of those that was contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the measure of damages, and not the stipulation.

III. Temperate damages are awarded when the court finds that some pecuniary loss had been suffered but its amount cannot be proved with certainty.

IV. Exemplary damages are recovered as a matter of right.

a. Statements I and IV are true.

b. Statements II and III are true.

c. Statements I and II are true.

d. Statements II and IV are true.

e. None of the statements are true.

Answer 32

b. Statements II and III are true.

Question 33

Suppose that the only surviving heir of a certain person whose death was caused by a crime or quasi-delict is a brother or a sister, can such brother or sister recover moral damages for mental anguish by reason of the death of the deceased?

a. No, Art. 2206, No. 3, of the NCC is explicit, only “the spouse, legitimate and illegitimate descendants and ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased.” Brothers and sisters are not included.

b. No, the party entitled to recovery of moral damages is primarily upon discretion of the trial court.

c. Yes, provided the brother or the sister can substantiate and duly prove the mental anguish suffered from the death of the deceased sibling.

d. Yes, the spouse, descendants, ascendants, and brother and sisters may bring an action to recover moral damages for acts mentioned in Art. 309 NCC.

Answer 33

a. No, Art. 2206, No. 3, of the NCC is explicit, only “the spouse, legitimate and illegitimate descendants and ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased.” Brothers and sisters are not included.

Question 34

John Smith, an American citizen, together with Juana Dela Cruz, a Filipina, bought a parcel of land from Pedro Santos, a Filipino. The property is located in Davao City and was registered in Juana Dela Cruz’s name. Which of the following is incorrect?

A.John Smith never acquired any right to the land, he being an alien.

B.John Smith can claim for reimbursement of the value of the purchased parcel of land against Juana Dela Cruz.

C.Pedro Santos can recover the land sold to John Smith, subject to restitution.

D.Juana Dela Cruz acquired ownership over the land.

Answer 34

A.John Smith never acquired any right to the land, he being an alien.

Question 35

Which of the following statement is false:

A.Prescription is a mode of acquiring ownership and real rights through lapse of time in the manner that the possession be in the concept of an owner, public, peaceful, uninterrupted, and adverse.

B.Acquisitive prescription is either voluntary or extraordinary.

C.Ordinary prescription requires possession for ten (10) years.In extraordinary prescription, ownership and other real rights are acquired through

D. uninterrupted adverse possession for 30 years without need of title or of good faith.

Answer 35

C.Ordinary prescription requires possession for ten (10) years. In extraordinary prescription, ownership and other real rights are acquired through

Question 36

Choose the BEST answer.

A.If a plot of land was formerly within a forest zone mere possession of 10 years by a third party is sufficient to vest private ownership thereto.

B.The commencement of adverse possession presents no problem regardless if the subject property was formerly part of a forest zone.

C.The possession of a parcel of land classified as a forest zone can ripen into private ownership, even without it being reclassified into public land.

D.If an applicant has possessed a parcel of land for 30 years or more before it was classified as a forest zone, then such prior possession may ripen into private ownership.

Answer 36

D.If an applicant has possessed a parcel of land for 30 years or more before it was classified as a forest zone, then such prior possession may ripen into private ownership.

Question 37

A is a Filipino citizen, she was married to B, a Canadian Citizen. On June 8, 2022 the spouses acquired 4 hectares of land in Tagaytay. Is the parcel of land part of the conjugal property of the spouses?

A.Yes, when two people wed, a portion or all of their and their spouse’s assets becomes conjugal propertyB.Yes,themarriedcouplebecomesco-ownersofpropertiesownedseparatelyatthe time of marriage as well as those accumulated later during the course of their marital relationship.

C.No. Foreigners are not allowed to acquire land in the Philippines

D.No. Foreigners are allowed to acquire lands up to 3 hectares only.

Answer 37

C.No. Foreigners are not allowed to acquire land in the Philippines

Question 38

Which of the following patents requires prior possession of the land by the applicant before the application for a public land grant

A. Homestead Patent

B. Special Patents

C. Agricultural Free Patent

D. Sales Patent

Answer 38

C. Agricultural Free Patent

Question 39

Which statement is true?

A.Lands would cease to be public land only upon the issuance of the certificate of title.

B.Torrens system of land registration does not create a title nor vest one.

C.Earlier unregistered sale is superior to registered sale.

D.After the registration is complete and final and there exists no fraud,innocent third parties may still claim an interest.

Answer 39

B.Torrens system of land registration does not create a title nor vest one.

Question 40

Which of the following statements is true?

A. Any land under native title, or those that should have been in the possession of an occupant and of his predecessors-in-interest since time immemorial is an exception to the Regalian Doctrine.

B. Only Filipino Citizens can acquire private or public agricultural lands.

C.All of the above

D. None of the above

Answer 40

A. Any land under native title, or those that should have been in the possession of an occupant and of his predecessors-in-interest since time immemorial is an exception to the Regalian Doctrine.

Question 41

Which of the following is NOT a prohibited compromise?

A. A declares, admits, and acknowledges that there is no blood relationship or affiliation between her and the child, Y.

B. X agreed to sell his future inheritance to the other heir, Y to avoid judicial settlement of estate.

C. G, the guardian of W, agreed with the latter’s putative father, that they will no longer seek financial support from him.

D. Legally separated spouses, W and H, entered into a compromise agreement to sell some of their properties to each other.

Answer 41

D. Legally separated spouses, W and H, entered into a compromise agreement to sell some of their properties to each other.

Question 42

Which of the following statement is false:

A.A compromise is a contract whereby the parties, by making reciprocal concessions, avoid litigation or put an end to one already commenced.

B.A compromise agreement is perfected by mutual consent.

C.A compromise agreement entered by a third party without special power of attorney is void.

D.Compromise agreement has the effect and authority of res judicata between theparties, and is immediately final and executory, unless rescinded upon grounds that vitiate consent.

Answer 42

C.A compromise agreement entered by a third party without special power of attorney is void.

Question 43

When is proof insufficient to establish private right or ownership

A.When a decision involves a compromise agreement expressly conferring property rights to the parties which executed the same in a land registration case.

B.When a decision involves a predecessor-in-interest of an applicant, who possesses a transmissible right over the subject property,C.When one of the contending parties possesses a torrens title

Answer 43

A.When a decision involves a compromise agreement expressly conferring property rights to the parties which executed the same in a land registration case.

Question 44

Andrea Santos, as legal guardian of Bailey Santos, filed an action for maintenance and support against the alleged father, Carl Santos. In his Answer, Carl Santos denied paternity of the said minor and theorized that he cannot therefore be required to provide support. Due to said denial, Andrea Santos manifested that it was “futile and a useless exercise to claim support from defendant.” She, thus, withdrew the complaint subject to the condition that Carl Santos will not pursue his counterclaim. Carl Santos agreed and the trial court dismissed the case with prejudice. However two years after, Andrea Santos filed a similar complaint against Carl Santos, this time as the minor’s legal guardian/mother. Carl moved to dismiss the case on the ground of res judicata but was denied by the trial court. The Court of Appeals upheld the denial. Is the CA correct in upholding the denial of the trial court?

A.No. Res judicata should be applied because the prior judgment was dismissed with prejudice.

B.Yes. It violates the prohibition against any compromise of the right to future support.

Answer 44

B.Yes. It violates the prohibition against any compromise of the right to future support.

Question 45

Which of the following compromise agreement is valid:

A.A compromise agreement between spouses Pedro and Julia waiving their obligation for support during the pendency of action on the declaration of nullity of their marriage.

B.Juan, an illegitimate child filed for a petition to be recognized and while the case is pending, he entered into a compromise agreement with the legitimate family of his father stating that he would abandon the petition in exchange for the inheritance he would receive if he was recognized.

C.Cruz entered into a Compromise Agreement on behalf of ABC Corporation without a Special Power of Attorney

D.A compromise agreement was entered by Pedro and Juan to end a longstanding litigation.

Answer 45

D.A compromise agreement was entered by Pedro and Juan to end a longstanding litigation.

Question 46

Which statement is correct?

A.One of the parties cannot set up a mistake of fact against the other if the latter, by virtue of the compromise, has withdrawn from a litigation already commenced.

B.A compromise in which there is a mistake, fraud, violence, intimidation, undue influence, or falsity of documents is voidable.

C.A and B are correct.

D.None of the above.

Answer 46

C.A and B are correct.

Question 47

Which of the following is not valid?

A.X and Y, upon separation, both agreed in writing to transfer the titles to their conjugal real properties in the name of their four common children

B.X and Y, upon separation, both agreed in writing to be both single as long as their children gets all their properties.

C.Both are valid.

D.Both are invalid.

Answer 47

B.X and Y, upon separation, both agreed in writing to be both single as long as their children gets all their properties.