REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS MAY
2020 BATCH
DRILL NO. 5
1. An absolutely simulated contract is:
A. Void
B. Voidable
C. Valid
D. Unenforceable
2. One of the following statements does not pertain to a relatively simulated contract.
A. The parties conceal their real agreement.
B. The parties are bound by their real agreement provider it does not prejudice third
persons.
C. The parties are bound by their real agreement provided it is not contrary to law,
morals, third persons, public order or public policy.
D. The parties do not intend to be bound at all.
3. A contract whose cause is the promise of a thing or service by the other party is:
A. An onerous contract.
B. A gratuitous contract.
C. A lucrative contract.
D. A remuneratory contract.
4. A contract whose cause is the liberality of the benefactor is:
A. A gratuitous contract or contract of pure beneficence.
B. A remuneratory contract.
C. An aleatory contract.
D. An onerous contract.
5. The following are the requisites of a rescissible payment, except:
A. The debt is already due.
B. The debtor is insolvent.
C. The debtor pays the debt.
D. The payment is not yet due.
6. Rescission of a contract will prosper in one of the following cases. Which is it?
A. When there are other legal means to obtain reparation of the damages caused.
B. When he who demands rescission cannot return whatever he may obliged to restore.
C. When the object of the contract is in the possession of a third person who purchased
the property of the debtor in bad faith.
D. When the action to bring rescission has prescribed.
7. The following contract are voidable, except:
A. Contracts entered into during a state of drunkenness or hypnotic spell.
B. Contracts entered into during a lucid interval.
C. Contracts where one of the parties is incapable of giving consent.
D. Contracts where the consent of one party is vitiated by violence, intimidation,
mistake, fraud or undue influence.
8. The Statue of Frauds applies only to:
A. Wholly executed contracts.
B. Contracts wholly or partially executed on the part of the debtor.
C. Contracts wholly or partially executed on the part of the creditor.
D. Wholly executory contracts.
9. The following contracts are void or inexistent, except:
A. Those whose object is outside the commerce of men.
B. Those which contemplate an impossible service.
C. Those where the intention of the parties relative to the principal object of the
contract cannot be ascertained.
D. Those where one of the parties is guilty of fraud in performing his obligation.
10.Reformation is not available in the following cases, except:
A. Simple donations inter vivos wherein no condition is imposed.
B. Wills.
C. When the real agreement is void.
D. When through the ignorance, lack of skill, negligence or bad faith on the part of the
person drafting the instrument of the clerk or typist, the instrument does not express
the intention of the parties.
11.A, a minor, B and C wrote and signed a promissory note which states “I promise to pay D
P30,000.” At the maturity date of the note, how much may D validly collect from C if B
becomes insolvent?
A. P10,000
B. P20,000
C. P30,000
D. P15,000
12.X, Y and Z solidarily owe A, B, C, D, joint creditors P30,000. How much can A collect from
X?
A. P7,500 only.
B. P20,000, A in turn has to give P5,000 each to B, C and D.
C. P10,000, A in turn has to give P2,500 each to B, C and D.
D. P5,000 only.
13.A, B and C executed a promissory note binding themselves to pay P9,000 to X, Y and Z.
The note is now due and demandable. Can the creditors proceed against A alone for the
payment of the entire debt.
A. No, each creditor can collect only P3,000 from A.
B. Yes, either X, Y or Z can collect P9,000 from A.
C. No, each creditor can collect only P1,000 from A.
D. Yes, since the promissory note is silent with respect to the rights of the creditors,
the obligation is presumed to be solidary.
14.A, B and C wrote and signed a promissory note which states “We promise to pay D and E
P60,000.” At the maturity date of the note, D indorsed back the promissory note to A.
How much obligation is extinguished and by what mode of extinguishment of obligation?
A. P20,000 by confusion
B. P60,000 by compensation
C. P30,000 by remission
D. P10,000 by merger
15.There being no express stipulation and if the undertaking is to deliver a determinate
thing the payment shall be made.
A. At the domicile of the debtor
B. At the domicile of the creditor
C. Whenever the thing might be at the moment the obligation was constituted
D. Wherever the thing might be at the moment the obligation is to be fulfilled
wherever
16.Mel sold to Jay her car and promised to deliver the car to Jay on January 30, 2004. On
January 15, 2004, Mel sold the same car to Patrick immediately possessed the car. As of
February 5, 2004, Jay has not received the car from Mel.
A. Jay can cancel the contract of sale between, Mel and Patrick because the contract of
sale between him and Mel was perfected first;
B. Mel cannot be considered in delay because there was no demand yet from Jay;
C. Mel is already in delay, even if there was no demand from Jay and she shall be liable
for damages;
D. The sale is rescissible of damage caused to Jay.
17.A and B orally agreed that A would sell and B would buy A’s radio for P200 three years
from the date of the agreement. At the end of the three years, A refused to hand over
the radio although B was willing to pay. Is A bound to deliver the radio sold?
A. A is obliged to deliver what he sold since it was an enforceable sale.
B. A is obliged to deliver if B is ready to pay the price.
C. A is not bound to deliver because the sale is unenforceable.
D. A is not bound because the sale is void.
18.B rented the specific truck of S. After the end of the contract, S sold the property to B. As
a result of sale, B continues to have possession of the property. What type of
constructive delivery is present?
A. Traditio clavium
B. Traditio longa manu
C. Traditio brevi manu
D. Traditio constitutum possessorium