1. Which of the following is not a real contract?

a. Deposit
b. Pledge
c. Commodatum
d. Mutuum
e. All of the above
f. None of the above
2. Garry offered to construct the house of Larry for a very reasonable price of 900,000, giving the
latter 10 days within which to accept or reject the offer. On the fifth day, before Larry could
make up his mind, Garry withdrew his offer. What is the effect of the withdrawal?
a. The withdrawal of the offer will cause the offer to cease in law.
b. If subsequently accepted there would be concurrence of the offer and the acceptance.
c. Garry will be liable to pay Larry any damages for withdrawing the offer.
d. Garry can be held to have breached the contract.
3. Dennis promised to give his grandson a car if he passed his CPA Board Exam. When his grandson
passed the said examinations, Dennis refused to give the car on the ground that the condition
was a purely potestative one. Is he correct or not?
a. No, he is not correct because it does not depend on the sole will of one of the parties.
b. No, he is not correct because the condition has been fulfilled and must give the car to his
grandson.
c. Yes, he is correct because it is based solely on the will of his grandson
d. Yes, he is correct because it is based on the sole will of the creditor and not of the debtor
4. Which among the following are valid obligations:
I. If the debtor promises to pay as soon as he has the means to pay
II. If the debtor promises to pay when he likes
III. If the debtor promises to pay when he becomes a CPA
IV. If the debtor promises to pay if his son, who is sick with cancer, does not die within one
year
a. I,II,III,IV
b. I,III,IV
c. I,II,IV
d. I,II,III
5. I. Compensation involves the simultaneous balancing of two obligations in order to extinguish
them to the extent in which the amount of one covered by that of the other.
II. Payment means not only delivery of money but also performance of the obligation.
I II
a. True True
b. True False
c. False True
d. False False
6. Four foreign medical students rented the apartment of Thelma for a period of one year. After
one semester, three of them returned to their home country and the fourth transferred to a
boarding house. Thelma discovered that they left unpaid telephone bills in the total amount of
80,000. The lease contract provided that the lessees shall pay for the telephone services in the
leased premises. Thelma demanded that the fourth student pay the entire amount of the
unpaid telephone bills but the latter is willing to pay only one fourth of it. Who is correct?
a. The fourth student is correct because their liability is merely joint.
 b. The fourth student is correct because the other three students had also incurred such
telephone expenses
c. Thelma is correct since according to the lease contract the students are liable for telephone
bills
d. Thelma is correct since the lease contract implies solidarity and the fourth student could be
reimbursed by the other three students.
7. Joey, Jovy and Jojo are solidary debtors under a loan obligation of 300,000 which has fallen due.
The creditor has, however, condoned Jojos entire share in the debt. Since Jovy, has become
insolvent, the creditor makes a demand on Joey to pay the debt.
a. 200,000
b. 50,000
c. 100,000
d. 300,000
8. A,B,C,D and E made themselves solidarity indebted to X for the amount of 50,000. When X
demanded payment from A, the latter refused to pay on the following grounds
I. B is only 16 years old
II. C has already been condoned by X
III. D is insolvent
IV. E was given by X an extension of 6 months without the consent of the other four co-
debtor
How much should A pay to X?
a. X should pay 50,000 since their liability is solidary and he may reimburse the 40,000 to his
co-debtor
b. X should pay 40,000 since Cs part has been condoned by X and he may avail such defense
which are derived from the nature of the obligation while he may not avail the defense of
minority of B since this is personal only to B.
c. X should pay 30,000 since he may avail of the defences of B and C as to their respective
share and thus the remaining amount could be demanded by X to A.
d. X should pay 10,000 all of the defences of B, C, D and E may be availed of by A. A solidary
debtor may avail himself of any defense which personally belongs to a solidary co-debtor.
9. Arturo gave Richard a receipt which states:
Receipt
Received from Richard as down payment for my 1995 Toyota
Corolla with Plate number XYZ 123 P50,000.
Balance payable: 12/30/01..50,000
September 15, 2001
(Sgd.) Arturo
This receipt is an evidence of:
a. Pledge b. Deposit c. Sale d. Contract to Sell