PRACTICE QUESTIONS
AND
SUGGESTED ANSWERS
IN
CIVIL LAW REVIEW II
Obligations
Contracts
Sales
Lease
Credit Transactions
Agency
Trust
Partnership
Torts and Damages
Practice Questions and Suggested Answers 1
, CIVIL LAW REVIEW II
INSTRUCTIONS
1. This is merely a compilation of practice questions and suggested answers. You are not supposed
to memorize these questions in lieu of reading cases and commentaries as preparation for your
exams.
2. As stated, these are merely SUGGESTED answers. You are free to disagree and have your own
answer or opinion.
3. This compilation is a mere supplementary material for your Civil Review II class. Do not rely on
this alone. Memorizing this by heart will not guaranty a passing grade for the class.
Practice Questions and Suggested Answers 2
, CIVIL LAW REVIEW II
Table of Contents
Obligations: General Principles ..................................................................................................................... 4
Obligations .................................................................................................................................................. 13
Kinds of Obligations .................................................................................................................................... 17
Joint and Solidary Obligations (Computation) ............................................................................................ 22
Modes of Extinguishment ........................................................................................................................... 25
Contracts ..................................................................................................................................................... 30
Status of Contracts ...................................................................................................................................... 36
Sales ............................................................................................................................................................ 37
Status of Contracts ...................................................................................................................................... 58
Sales II ......................................................................................................................................................... 59
Maceda Law ................................................................................................................................................ 62
Status of Contracts of Sale .......................................................................................................................... 64
Remedies..................................................................................................................................................... 66
Extinguishment of Contract of Sale ............................................................................................................ 68
Lease ........................................................................................................................................................... 70
Credit Transactions: General Principles ...................................................................................................... 73
Credit Transactions ..................................................................................................................................... 79
Agency in General ....................................................................................................................................... 91
Agency ......................................................................................................................................................... 94
Partnership in General .............................................................................................................................. 100
Partnership................................................................................................................................................ 104
Torts and Damages in General .................................................................................................................. 106
Torts and Damages ................................................................................................................................... 109
Practice Questions and Suggested Answers 3
, CIVIL LAW REVIEW II
OBLIGATIONS: GENERAL PRINCIPLES
TRUE OR FALSE
1. If the debtor obliged to do something fails to do it, an action for specific performance will
prosper.
a. FALSE. It will violate involuntary servitude. The remedy is the obligation may be done
by another at the expense of the debtor.
2. In conditional obligations, the obligation arises upon the happening of the condition.
a. FALSE. There are different kinds of conditional obligations. The condition may be
resolutory.
3. In case of non-compliance of obligations with a penal clause, the penalty shall substitute the
indemnity for damages and the payment of interest.
a. FALSE. The statement is not absolute; an exception is if there was an agreement.
4. The insolvency of one debtor will increase the liability of his co-debtors.
a. FALSE. This does not always apply. The liability will not increase if the obligation is
joint.
5. That obliged to deliver or do something (???) in delay only from the time the obligee judicially or
extra-judicially demands from them the fulfillment of their obligation.
a. FALSE. The statement is not absolute; an exception is when an obligation doesn’t need
demand but there is delay.
i. When stipulated by the parties, by provision of law, when time is the essence
or when the demand will be useless.
6. Proof of actual damages suffered by the creditor is not necessary in order that the penalty may
be demanded.
a. TRUE. Express provision, Art. 1228.
7. An obligation which is payable upon the death of Mr. X within five years from its execution is a
conditional obligation.
a. TRUE.
8. Solidarity may exist although the creditors and the debtors may not be bound in the same
manner and by the same periods and conditions.
a. TRUE. Art. 1207 provides that “there is a solidary liability only when the obligation
expressly so states, or when the law or the nature of the obligation requires
solidarity.”
Practice Questions and Suggested Answers 4