1.

Relativity of Contracts; Stipulation pour atrui

2. Contract of Option

a. CASE: Ang Yu Asuncion vs. CA et al., 238 SCRA 602

3. Right of First Refusal: Can it be a proper subject for specific

performance?
a. CASE: Litonjua vs. L & R Corporation, 320 SCRA 405

4. A 25 door apartment was leased to several tenants with

Samching as the President of the tenants who was designated to
negotiate for the purchase of the apartments by the tenants, but
it turned out that he bought the property from the owner. Felt
betrayed, tenants sued for the redemption alleging that there
was implied trust between them and Samching. The RTC held
that there was an implied trust but the Court of Appeals reversed
it. If you were the ponente on appeal, how would you decide?
Why?
5. Mr. Del Rosario met with Mr. Lopez of ABS-CBN on April 2, 1992 to
discuss a package of 104 Viva films offering such package for
exhibition for a New Film Exhibition Agreement. ABS-CBN sent a
counter proposal, through Ms. Concio in a form of draft contract
proposing exhibition of 53 films for a consideration of P35M. Such
counter proposal is less than the counter-offer of Mr. Lopez
during the conference with Mr. Del Rosario. Was there a
perfected contract? Explain.
6. In a contract of lease over a 490 square meter lot, there was an
offer to sell, but the parties failed to agree on the size of the land
to be sold, was there a meeting of the minds of the parties?
Why?

7. In a contract of sale of a van between Ben and Jen, they agreed

that the consideration is P1 and other consideration. Is the
contact valid? Why?
8. What contracts or acts must appear in a public instrument?

9. A contract of sale was entered into by Maria and Pacita whereby

the former sold his Lot 123 to the latter. In the instrument

prepared, what was sold therein is Lot 456. However, when

Pacita occupied Lot 123, Maria did not object. May this contract
be the subject of reformation of instrument? Explain.
10.
Enumerate the rescissible contracts.
11.
Jr. a minor represented himself to be of legal age and
entered into a contract with Boy. Can Jr. ask for the annulment of
the contact based on his minority? Why?
12.
Tito and Tita entered into an oral contract of sale of a
parcel of land agreeing on the price, date of payment and
delivery of the title on March 15, 2010. On said date Tita
delivered the money but Tito refused to deliver the title. (a) Can
Tita sue Tito to enforce the oral contract? Why? (b) What will be
the defense of Tito if any? Will it prosper? Why? (c) Will your
answers in
a nad b be the same if Tito accepted a
downpayment? Explain (d) Suppose Tita has already delivered
the consideration, but Tito refuses now to execute the dee of
conveyance, what would be the remedy of Tita? Explain.
13.
What are the void contracts?
14.
An action for reconveyance of a real property allegedly sold
but without consideration was brought to court. It was contended
that the action has prescribed since 16 years have already
lapsed. Is the contention correct? Why?
15.
Jose entered into an oral contract of loan with Maria in the
amount of P50,000.00 in 1999 which became due and
demandable in 2001. In 2010, Maria sent a demand letter and
Jose paid his indebtedness. Advised that the obligation had
already prescribed, he sued Maria for reimbursement. Is the
advice correct? Will the action prosper? Why?
16.
In a contract of sale of a van between Ben and Jen, they
agreed that the consideration is P1 and other consideration. Is
the contact valid? Why?
17.

What contracts or acts must appear in a public instrument?

18.
A contract of sale was entered into by Maria and Pacita
whereby the former sold his Lot 123 to the latter. In the
instrument prepared, what was sold therein is Lot 456. However,
when Pacita occupied Lot 123, Maria did not object. May this
contract be the subject of reformation of instrument? Explain.
19.
Jr. a minor represented himself to be of legal age and
entered into a contract with Boy. Can Jr. ask for the annulment of
the contact based on his minority? Why?

20.
Tito and Tita entered into an oral contract of sale of a
parcel of land agreeing on the price, date of payment and
delivery of the title on March 15, 2010. On said date Tita
delivered the money but Tito refused to deliver the title. (a) Can
Tita sue Tito to enforce the oral contract? Why? (b) What will be
the defense of Tito if any? Will it prosper? Why? (c) Will your
answers in
a nad b be the same if Tito accepted a
downpayment? Explain (d) Suppose Tita has already delivered
the consideration, but Tito refuses now to execute the dee of
conveyance, what would be the remedy of Tita? Explain.
21.

What are the void contracts?

22.
An action for reconveyance of a real property allegedly sold
but without consideration was brought to court. It was contended
that the action has prescribed since 16 years have already
lapsed. Is the contention correct? Why?
23.
Jose entered into an oral contract of loan with Maria in the
amount of P50,000.00 in 1999 which became due and
demandable in 2001. In 2010, Maria sent a demand letter and
Jose paid his indebtedness. Advised that the obligation had
already prescribed, he sued Maria for reimbursement. Is the
advice correct? Will the action prosper? Why?

II. Explain your choice by indicating the provision of law and or

jurisprudence applicable.
1. In its derivative sense, the word contract simply means agreement or
convention. The following are contracts of agreement except one.
a. Sale
b. Donation
c. Marriage
d. Pledge
2. This principle refers to the essential equality that is occupied by both
contracting parties in relation to the contract.
a. Obligatory force of contracts
b. Mutuality of contracts
c. Autonomy of contracts
d. Relativity of contracts
3. Contracts cannot as a general rule, produce any effect upon third
persons, which principle is this? Please select from number 2.

4. Once a contract is perfected, the contracting parties are bound, not

only to the fulfillment of what has been expressly stipulated, but also
to all of the consequences thereof. Which principle is it? Select from
number 2.
5. This is the principle by which the contracting parties may establish
such agreements as they may deem convenient, provided they are not
contrary to law, morals, good customs, public order or public policy.
Select from number 2.
6. A contract which provides that during the employment and for a
period of five years from termination thereof, an employee shall not
engage or interest himself in any business enterprise similar to that of
employer is against
a. Law
b. Morals
c. Public policy
d. Good customs
7. A stipulation in a contract, clearly and deliberately conferred by the
contracting parties as a favor upon a third person, who must have
accepted it before it could be revoked is a
a. Contract of adhesion
b. Contract per atrui
c. Pactum Commisorium
d. Quasi-Contract
8. Before a third person who induces another to violate his contract can
be held liable for damages, it is essential that the following requisites
must concur except one
a. The existence of a valid contract
b. Knowledge on the part of the third person of the existence of the
contract
c. Interference by the third person without legal justification or excuse
d. Interference is to gratify ones spite.
9. A contract entered into in the name of another shall be valid if
a. Entered into by a person with legal representation
b. By a person who has special power of attorney who acted beyond
his authority
c. It is not revoked by the other contracting party
d. Ratified by a third person who has interest in the contract
10.The following are exceptions to the rule that a contract entered into by
an emancipated minor the consent of his parents or guardian is
voidable except one
a. When the contract is entered into by a minor who misrepresents his
age
b. Where the contract involves the sale and delivery of necessaries to
the minor
c. Where it involves a natural obligation and such obligation is
voluntarily fulfilled by the minor
d. When it is a life, health or accident insurance taken on the life of
the minor, provided that the minor is 18 years old or more and the
beneficiary is the minors estate, or the minors father, mother,
husband, wife, child, brother or sister.

11.Innominate contracts shall be regulated by

a. Stipulations of the parties
b. By the provisions of Titles I and II of the Civil Code
c. By the rules governing the most analogous nominate contracts and
by the customs of the palce
d. All of the above
12.The following are the instances under the Civil Code where a contract
may produce effect either directly or indirectly on third persons except
one
a. Where the contract contains a stipulation in favor of a third person
b. Where the third person comes into possession of the object of a
contract creating a real right
c. Where the third person induces a contracting party to violate his
contract
d. Where a contract is entered into not to defraud a third person.
13.An offer maybe defined as a proposal to make a contract. Which of the
following is not a proposal?
a. A is in a position to and is willing to entertain the purchase os a
house and lot belonging to B
b. A offers for sale his house and lot to B in the amount of Php1million.
c. A offers for sale his house and lot worth 1 million to B who was
given one month time to accept
d. B offered to buy the hous and lot of A in the amount of
Php800,000.00
14.Which of the following is a perfected contract?
a. Offerer proposes to lease one part of a part of a parcel of land and
to sell another part, offeree accepted
b. Offerrer proposes to lease one part of a parcel of land or to sell
another part, offeree accepted
c. Offerrer proposes to lease one part of a parcel of land and to sell
another part, offeree accepted by mail and it was received by the
househelper
d. Offerer proposes to lease one part of a parcel of land and to sell
another part, acceptance reached the offerer who became insolvent
15.Which of the following is true?
a. The person accepting the offer may fix the time, place and manner
of acceptance, all of which must be complied with
b. An offer made through an agent is accepted from the time
acceptance is communicated to the principal
c. An offer becomes ineffective upon the death, civil interdiction,
insanity, or insolvency of either party before acceptance is
conveyed
d. When the offerrerhas allowed the offeree a certain period to accept,
the offer may be withdrawn at
any time before acceptance although an option is founded on a
consideration
16.The following cannot give consent to a contract except one
a. Minors
b. Insane or demented persons
c. Deaf mutes who are illiterate

d. Agents, the property whose administration or sale has been

entrusted to them.
17.When one of the contracting parties is unable to read, or if the contract
is in a language not understood by him and mistake or fraud is alleged
a. The person enforcing the contract must show that the terms thereof
have been fully explained to the former
b. The illiterate party must prove that he cannot read and write
c. The person who caused the fraud must prove the same
d. The contracting parties must both prove the same
18.Which is correct?
a. There is intimidation when one of the contracting parties is
compelled by a reasonable and well-grounded fear of an imminent
and grave evil upon his person or property, or upon the person or
property of his spouse, descendants or ascendants, to give his
consent
b. There is violence when in order to wrest consent force is employed
c. When there is mistake on a doubtful question of law, or on the
application of law, this is similar to a mistake committed by both
parties
d. Mutual errors as to the legal effect of an agreement when the real
purpose of the parties is frustrated does not vitiate consent
19.There is fraud when
a. Through insidious words or machinations of one of the contracting
parties, the other is induced to enter into a contract which, without
them, he would not have agreed to
b. When a person takes improper advantage of his power over the will
of another, depriving the latter or a reasonable freedom of choice
c. There is failure to disclose fact
d. There is usual exaggerations in trade
20.Simulation of a contract may be absolute or relative
a. A relatively simulated contract is fictitious and therefore void
b. An absolutely simulated or fictitious contract is void
c. A relative simulation of contract means that the parties do not
intend to be bound by the contract at all
d. A relative simulation of contract affect the status of the contracting
parties.
21.The following are requisites which must concur in order that there will
be a sufficient cause upon which a contract may be founded except
one:
a. The cause should be in existence
b. The cause should be licit or lawful
c. The cause should be true
d. The cause should be false
22.As a general rule, what is the form of a contract in order that it will be
of obligatory force?
a. It must be in writing to be valid
b. It must be in writing to be enforceable
c. It must be in a public instrument in order to be valid
d. It must be in any form

23.The following are the kinds of formalities which are prescribed by law
for certain contracts except one
a. Those which are for convenience or for the purpose of binding third
persons
b. Those which are necessary for the validity of contracts
c. Those which are necessary for the enforcement of contract
d. Those which requires registration in order to be valid
24.In order that there can be reformation of instrument, the following
requisites must concur except one
a. There must be meeting of minds of the parties
b. There must be meeting of a definite offer and an unqualified
acceptance
c. Their true intention is not expressed in the instrument
d. Such failure to express their true intention is due to mistake, fraud,
inequitable conduct or accident
25.The following are examples of instruments which may be reformed
except one:
a. When a mutual mistake of the parties causes the failure of the
instrument to disclose their real agreement
b. If one party was mistaken and the other acted fraudulently or
inequitably in such a way that the instrument does not show their
true intention
c. When one party was mistaken and the same knew or believed that
the instrument did not state their real agreement and concealed
such fact
d. If two parties agree upon the mortgage or pledge of real or personal
property, but the instrument states that the property is sold
absolutely, or with a right of repurchase
26.Which is not correct?
a. A rescissible contract is susceptible of convalidation only by
prescription
b. A rescissible contract can be attacked directly only, and not
collaterally
c. A rescissible contract can be attacked only by one of the
contracting parties
d. A rescissible contract is valid and therefore legally effective
27.Voidable contracts possess the following characteristics except one:
a. Their defects consists in the vitiation of consent or in the legal
incapacity of both of the contracting parties
b. They are binding until they are annulled by a competent court
c. They are susceptible of convalidation either by ratification or
prescription
d. They cannot be attacked or assailed by third persons
28.Unenforceable contracts possess the following characteristics except
one:
a. They cannot be enforced by a proper action in court
b. They are not susceptible of convalidation by ratification
c. They cannot be attacked or assailed by third persons

d. Their defect consists either in the fact that were entered into in
excess or without authority, or they do not comply with the Statute
of Frauds, or both contracting parties are legally incapacitated.
29.Void or inexistent contracts possess the following features or
characteristics except one
a. Their defects consists in the fact that they lack absolutely either in
fact or in law one or some of the elements of a valid contract
b. As a general rule, they produce no legal effects
c. They are susceptible of convalidation either by ratification or
prescription
d. The right to set up the defense of absolute nullity or inexistence
cannot be renounced
30.The following are requisites that must concur before a contract may be
rescinded on the ground of lesion except one
a. The contract must be entered into by the ward or by the legal
representative in behalf of an absentee
b. The ward or absentee suffered lesion of more than one fourth of the
value of the property which is the object of the contract
c. The contract must be entered into with judicial approval
d. The person bringing the action must be able to return whatever he
may be obliged to restore
31.The following are requisites that must concur before a contract entered
into in fraud of creditors can be rescinded except one
a. There must be a credit existing prior to the celebration of the
contact
b. There must be a fraud, or at least the intent to commit fraud, to the
prejudice of the creditor seeking rescission
c. The creditor cannot in any legal manner collect his credit
d. The object of the contract must be legally in the possession of a
third person who acted in bad faith
32.The following are badges of fraud except one
a. The fact that the cause or consideration is inadequate
b. A transfer made by a debtor after suit has been begun and while it
is pending against him
c. Evidence of large indebtedness or insolvency
d. The fact that the vendee had taken possession of the property at
once
33.How may a voidable contract be convalidated?
a. By prescription of the action for annulment
b. By loss of the thing through fortuitous event
c. By ratification of the person who committed fraud
d. By confirmation of the erring party
34.The following are exceptions to the principle of in pari delecto except
one
a. Payment of money or delivery of property for an illegal purpose,
where the party who paid or on delivered repudiates the contract
before the purpose has been accomplished, or before any damage
has been caused to a third person.
b. Payment of money or delivery of property by an incapacitated
person

c. Payment of any amount in consideration of the price of any article

or commodity
d. Contract where a laborer undertakes to work longer than the
maximum number of hours fixed by law.
35.A partnership borrowed P20,000.00 from Pedro at clearly usurious
interest. Can the creditor recover anything from the debtor?
a. Yes, he can recover the principal
b. Yes, he can recover legal interest on the principal
c. Yes, he can recover attorneys fees if proper
d. Yes, he can recover the principal, legal interest on the principal from
date of demand and attorneys fees.

36.
In two separate contracts for the sale of two lots in a
subdivision to the same buyer, who defaulted in both contracts
but where the total payment could cover one lot, the seller was
ordered to execute one absolute deed of sale to cover one
lot.what was applied by the Hon. Supreme Court?
a. Contracts have the force of law between the contracting
parties, and they are bound not only to the fulfillment of
what might have been stipulated but also to its
consequences.
b. A failure of due compliance by a party to a contract renders
him liable for causes attributable to him; upon the other
hand, if the non-fulfillment is brought about by
circumstances beyond his control, then he may not be held
responsible therefore
c. Courts may not substitute their own judgment for that of
the parties, and neither may the Courts modify the
agreement of said parties without thereby violating, among
other principles, the rule on consensuality of contracts.
d. Equity is broadly defined as being justice according to
natural law and right. Article 10 of the Civil Code expresses
that in case of doubt in the interpretation and application
of laws, it is presumed that the lawmaking body intended
right and justice to prevail. This is what was applied in the
case.
37.
As a matter of equity, a possessor in bad faith is entitled to
remove useful expenditures made by him, such as for the
construction of la bungalow, underground drainage and walled
fence, if the lawful possessor, on whose land the construction
and installation are made, fails to refund the expenses therefore,
applying by analogy the provisions of Article 549 of the Civil

Code on luxury expenditures. Which is not applicable in this

case?
a. The ruling appears to have ignored Article 449 of the Code
which explicitly states that he who builds, plants, or sows
in bad faith on the land of another, loses what is built,
planted or sown without right to indemnity
b. The ruling appears to have ignored Article 449 of the Code
which explicitly states that he who builds, plants, or sows
in bad faith on the land of another, loses what is built,
planted or sown without right to indemnity
c. . Some of the statutory provisions that could be invoked by
said buyer include Article 1191 on resolution of contracts,
articles 1545 and 1553-1556 on implied warranties in
sales, and articles 1916-1917 on agency, of the Civil Code.
d. The correct rule seems to be that where conflict situations
are well defined and capable of being resolved by the
application of legal principles, the latter must not be
permitted to be overridden by, or unsettled in equity. It is
in this context that Article 10 of the Civil Code should be
understood when it expresses that in case of doubt in the
interpretation and application of laws, it is to be presumed
that the lawmaking body intended right and justice to
prevail.
38.
One who purchases real property with knowledge of defect
or lack of title of the vendor or of facts that should have put him
to inquiry is not in good faith; and not being so, the vendee is not
entitled to warranty against eviction nor to damages. Which is
not correct?
a. Mere knowledge by the vendee of the defect of title of the
vendor (who need not even have title at the time of
perfection of the contract) does not render the vendors
implied warranties to become ineffectual. Even a waiver of
eviction does not totally exempt the vendor from liability
and he would still have to account for the value of the
thing at the time of eviction.
b. It is only a waiver with knowledge of the risk of eviction
and assumption of its consequences (intencionada, as
distinguished from consciente)
that may altogether
exempt the vendee from liability

c. If it were not declared void, the buyer of the defective sale

would have had ample legal remedies against the seller.
d. Court has said that it may, in the exercise of equity
jurisdiction, adjust the rights of the parties in accordance
with the circumstances obtaining upon the rendition of the
judgment when the standing of the parties have so
changed by the long pendency of their dispute that renders
it iniquitous to adhere to the rights and obligations of the
parties accruing at the time of their generation.
39.
It is utterly unfair to require a bank not allowed to operate
by the Central Bank to pay stipulated interest on money
deposited with it. Judicial notice may be taken of the fact that
what enables a bank to pay such interest is its ability to generate
funds from its authorized operations. As a matter of equity, the
situation can be denominated as force majeure. Which does not
support this ruling?
a. Fortuitous event, by itself, is not to be normally or lightly
taken as a mode of extinguishing an obligation but it may
trigger off or cause a valid mode that ordinarily can excuse
the obligor from an existing obligation
b. In an obligation to give, if the thing is lost, or in an
obligation to do, if the act or service becomes impossible
or so extremely difficult as to be beyond the contemplation
of the parties, due to a fortuitous event, the obligors
obligation may be extinguished.
c. In the cited case, the obligation is one to pay the stipulated
interest, and the object (money) of the obligation being
generic, loss as a mode of extinguishing an obligation
would be inapplicable under the principles genus nunquam
perit
d. That unforeseen difficulties are not grounds for reneging
upon a contract.
40. Pedro, Maria and Juan inherited from their parents a track of land.
Pedro and Maria lived abroad. Juan applied for registration of the
whole land for which a title in his name was issued. When Pedro and
Maria came home after 9 years, they sued Juan for their respective
shares. The latter alleged that the decree of title can no longer be
reviewed because of the lapse of more than one year from its issuance.
Whose favor would you decide?

a. I will decide in favor of Pedro and Maria. N action fro

reconveyance will prosper based on constructive trust
recognized by the Civil Code that if the property is acquired by
mistake or fraud, the person obtaining it is, by force of law,
considered a trustee of an implied trust for the benefit of the
person from whom the property comes.
b. I will decide in favor of Juan because an action of such kind is
already barred by prescription
c. Since the obligation is created by law, action prescribes in four
years, hence, I will decide in favor of Juan
d. Since under the constructive notice rule, Pedro and Maria are
deemed to have discovered the fraud as of the date the trustee
set up in himself a title adverse to the title of the beneficiaries,
since the action was commenced nine years after the issuance, I
will decide in favor of Juan.

41. In two separate contracts for the sale of two lots in a

subdivision to the same buyer, who defaulted in both contracts but
where the total payment could cover one lot, the seller was ordered to
execute one absolute deed of sale to cover one lot. If you were the
judge, what are you going to apply?
a. Contracts have the force of law between the contracting
parties, and they are bound not only to the fulfillment of
what might have been stipulated but also to its
consequences.
b. A failure of due compliance by a party to a contract renders
him liable for causes attributable to him; upon the other
hand, if the non-fulfillment is brought about by
circumstances beyond his control, then he may not be held
responsible therefore
c. Courts may not substitute their own judgment for that of
the parties, and neither may the Courts modify the
agreement of said parties without thereby violating, among
other principles, the rule on consensuality of contracts.
d. Equity is broadly defined as being justice according to
natural law and right. Article 10 of the Civil Code expresses
that in case of doubt in the interpretation and application
of laws, it is presumed that the lawmaking body intended
right and justice to prevail. Equity must be applied.
42.
As a matter of equity, a possessor in bad faith is entitled to
remove useful expenditures made by him, such as for the
construction of la bungalow, underground drainage and walled
fence, if the lawful possessor, on whose land the construction

and installation are made, fails to refund the expenses therefore,

applying by analogy the provisions of Article 549 of the Civil
Code on luxury expenditures. Which is not applicable in this
case?
a. The ruling appears to have ignored Article 449 of the Code
which explicitly states that he who builds, plants, or sows
in bad faith on the land of another, loses what is built,
planted or sown without right to indemnity
b. The ruling appears to have ignored Article 449 of the Code
which explicitly states that he who builds, plants, or sows
in bad faith on the land of another, loses what is built,
planted or sown without right to indemnity
c. . Some of the statutory provisions that could be invoked by
said buyer include Article 1191 on resolution of contracts,
articles 1545 and 1553-1556 on implied warranties in
sales, and articles 1916-1917 on agency, of the Civil Code.
d. The correct rule seems to be that where conflict situations
are well defined and capable of being resolved by the
application of legal principles, the latter must not be
permitted to be overridden by, or unsettled in equity. It is
in this context that Article 10 of the Civil Code should be
understood when it expresses that in case of doubt in the
interpretation and application of laws, it is to be presumed
that the lawmaking body intended right and justice to
prevail.
43.
One who purchases real property with knowledge of defect
or lack of title of the vendor or of facts that should have put him
to inquiry is not in good faith; and not being so, the vendee is not
entitled to warranty against eviction nor to damages. Which is
not correct?
a. Mere knowledge by the vendee of the defect of title of the
vendor (who need not even have title at the time of
perfection of the contract) does not render the vendors
implied warranties to become ineffectual. Even a waiver of
eviction does not totally exempt the vendor from liability
and he would still have to account for the value of the
thing at the time of eviction.
b. It is only a waiver with knowledge of the risk of eviction
and assumption of its consequences (intencionada, as

distinguished from consciente)

that may altogether
exempt the vendee from liability
c. If it were not declared void, the buyer of the defective sale
would have had ample legal remedies against the seller.
d. Court has said that it may, in the exercise of equity
jurisdiction, adjust the rights of the parties in accordance
with the circumstances obtaining upon the rendition of the
judgment when the standing of the parties have so
changed by the long pendency of their dispute that renders
it iniquitous to adhere to the rights and obligations of the
parties accruing at the time of their generation.
44.
It is utterly unfair to require a bank not allowed to operate
by the Central Bank to pay stipulated interest on money
deposited with it. Judicial notice may be taken of the fact that
what enables a bank to pay such interest is its ability to generate
funds from its authorized operations. As a matter of equity, the
situation can be denominated as force majeure. Which does not
support this ruling?
a. Fortuitous event, by itself, is not to be normally or lightly
taken as a mode of extinguishing an obligation but it may
trigger off or cause a valid mode that ordinarily can excuse
the obligor from an existing obligation
b. In an obligation to give, if the thing is lost, or in an
obligation to do, if the act or service becomes impossible
or so extremely difficult as to be beyond the contemplation
of the of parties, due to a fortuitous event, the obligors
obligation may be extinguished.
c. In the cited case, the obligation is one to pay the stipulated
interest, and the object (money) of the obligation being
generic, loss as a mode of extinguishing an obligation
would be inapplicable under the principles genus nunquam
perit
d. That unforeseen difficulties are not grounds for reneging
upon a contract.
45.
Can a trustee acquire absolute ownership over the
property held in trust by acquisitive prescription?
a. No. As a general rule, whether the trust is express or
implied, the trustee cannot acquire absolute ownership
over the trust by acquisitive prescription

b. No. Unless the prescriptive period still runs

c. Yes. If trustee repudiates the right of beneficiary after the
lapse of the period fixed by the parties
d. Yes. If the act of repudiation is brought to the knowledge of
the beneficiary.
II. ESSAY. Choose: a) If you were the counsel of Pedro / Petra, prepare a
complaint based on the facts given and be sure to lay down the
provisions and or cases that will support your action.
b) If you were the counsel of Juan , prepare a
responsive pleading based on the facts given by praying for the
dismissal or alleging affirmative defenses necessary to win your case.
c) Prepare a memorandum either for Juan, Pedro or
Petra
Facts: One half of a parcel of land with a total area of 30, 000 square
meters was sold by Pedro to Juan for the amount of P100,000.00. The
sale was executed verbally. One year later Pedro sold the entire parcel
of land to KLM who registered the sale at once and a title was issued in
his name. It turned out that Pedro is a co-owner of the subject parcel of
land with Petra, the latter who is a resident abroad found out the
dealings made by Pedro with respect to the land after nine years and
nine months of absence.
1. Define the following:
a). Pure obligation
b) Obligation with a period
c) Obligation with condition
d) alternative obligation
e) facultative obligation
f) joint obligation
g)solidary obligation
h) divisible obligation
i) indivisible obligation
j) obligation with a penal clause

2. What are the different kinds of conditions? Define each.

3. In an alternative obligation, when are the parties bound by the

selection?
4. In an alternative obligation, state the rule on the loss or
destruction of any or all the thing due.
5. In a joint indivisible obligation, what is the effect if anyone of
the debtors should fail to comply with his undertaking?
6. What is the effect of payment made by one solidary debtor?
7. If the thing which constitutes the object of the obligation to
give is divisible, does it necessarily follow that the obligation is also
divisible? Explain
8. What is the purpose of penalty clause in an obligation?
9. May courts delete the penalty clause in a contract? Explain
10. When shall the penalty be considered as a substitute for
damages or interests? What are the exceptions?