1. D is indebted to C for P10,000.For the purpose of defrauding C, D sold his only parcel of land to X valued at P10,000.X had no knowledge of the intention of D.

a. The contract between D and X is binding.

b. The contract is voidable because D is in bad faith.

c. The right of C is to rescind the contract because the transaction is fraudulent.

d. The contract between D and X is rescissible.

2. D owes C P500.However, C's right has already prescribed.Notwithstanding the knowledge of this fact, D paid the amount.Realizing this mistake, D wants to recover the amount he paid.

a. D can be made to recover on ground of mistake.

b. D can be made to recover on the ground that his obligation is not legally enforceable.

c. D can be made to recover because this will enrich C at the expense of D.

d. D cannot recover.

3. A obtained a loan from B for P1,500 with interest at 14% per annum, the payment of which was secured by guarantor C.After maturity of the loan, D without the knowledge of A paid B, P1,400 and thereupon B signed a receipt and gave it to D, of this tenor."Received from D P1,400 in full payment of A's obligation in may favor". (Sgd.) B.

a. D can recover from A P1,500 because the whole obligation of A to B has been extinguished.

b. D can recover from A P1,500 because the balance of P100 is considered extinguished by partial remission.

c. D can recover from A P1,400 because that was presumably the extent to which A was benefited.

d. D cannot recover from A because he paid without the knowledge of A.

One of the stipulations contained in the contract between M Company and its employees is that the company shall pay a bonus to employees of the company who shall continue its employment for at least 2 consecutive years, unless he quits or is discharged before the expiration of the period of 2 years. X, an employee of the company, was discharged without just cause one week before the completion of the two-year period.

a. X is not entitled to the bonus because his discharge was in accordance with the contract.

b. X is not entitled to the bonus, because the employer's right to terminate is superior than the right of the employee to be employed.

c. X is entitled to the bonus whether the discharge is with or without cause.

d. X is entitled to the bonus because the debtor company has voluntarily prevented the happening of the condition.

X, after the death of his father, sold his inheritance though its amount has not yet been determined to B, for a consideration of P50,000.

a. The contract is valid only if the inheritance values at least equal or more than P50,000.

b. The contract is rescissible.

c. The contract is valid even though nothing remains of her inheritance to be turned over to B.

d. Contract is void, future inheritance cannot be the object of sale.