46. S1. Contracts are binding and effective only between the parties, their heirs, and assigns. S2. Thus, an heir of a debtor is liable to the creditor for the full amount of the obligation.*

1 point

A. True, True

B. True, False

C. False, True

D. False, False

71. Employer promised to increase Employee's salary starting January 2020. However, the Employer did not fulfill his promise. Employee threatened Employer that he would complain to the Department of Labor and Employment if his salary is not increased. Thus, the Employer raised Employee's salary against his will. Is the Employer's consent vitiated by the vice of threat?*

1 point

A. Yes, because Employer has the choice whether to increase Employee's salary or not.

B. Yes, because Employer increased Employee's salary involuntarily.

C. No, because Employee threatened to resort to legal means to enforce his claim.

D. No, because Employer was the one who promised to increase Employee's salary.

72. S sold his lot to B. The lot is the subject of a case filed by X against S. S did not disclose this fact to B. Is S liable to B for fraud?*

1 point

A. Yes, because S has an obligation to reveal the fact to B even if the latter did not ask.

B. Yes, because the sale involves the transfer of real rights to the property.

C. No, because S did not say and did anything to convince B to buy the lot.

D. No, because B is bound by the rule of "caveat emptor" or "buyer beware."

73. A saw a TV advertisement of a body cologne showing women getting attracted to and running after the man who used the said product. Believing what he saw on TV, A bought the cologne, wear it, and walked along Session Road. He was disappointed when women gave no attention to him.*

1 point

A. A can complain for damages on ground of fraud because the advertisement is not true.

B. A can complain for damages because the advertisement is an exaggeration.

C. A cannot complain because the advertisement is in the nature of a "trader's talk" or "dealer's talk".

D. A cannot complain because there is no contract between him and the cologne's manufacturer.

74. D bound himself to deliver a Sony LED TV with Serial No. WERT-35 to C and to repair C'S washing machine. D failed to perform both.*

1 point

A. C can compel D to deliver the TV but not to repair the washing machine.

B. C can compel D to repair the washing machine but not to deliver the TV.

C. C can compel D to perform both.

D. C cannot compel D to perform both.