document does not provide the date of delivery. Before the delivery and payment, the horse gave birth to a baby horse.

a. Z is entitled tot he baby horse which was born after the perfection of the contract

b. Y is entitled to the fruit (baby horse) as Z has not paid the price yet

c. Y is entitled to the fruit (baby horse) because it was born before his obligation to deliver the horse

d. Z should pay additional amount for the baby horse to be entitled to it

22. A wrote a letter to B wherein A offered to sell a piece of land to B for P200,000. B signified his desire to buy the land. In A's letter he gives B a period of two (2) months within to produce the P200,000. After 45 days, A told B that the price of the land is now P250,000. Can B compel A to accept the P200,000 first offered by A and execute the deed of sale?

a. Yes, because there was actual meeting of the minds of the parties

b. No, for B did not signify his acceptance to A's offer

c. Yes, because A is already estopped by his signed letter

d. Yes, because the period of two(2) months has not expired

23. Mr. Santos sold his car to Mr. Garcia for P150,000. No date was fixed by the parties for the performance of their respective obligations. The obligation of Mr. Santos is:

a. To deliver the car immediately as there is a perfected contract

b. To deliver the car upon the payment by Mr. Garcia of P150,000

c. To rescind the contract since there is no time fixed for the delivery and payment of the car

d. To deliver the car within reasonable time after the demand of Mr. Garcia to deliver

24. These persons are bound by contract:

a. Contracting parties

b. Heirs

c. Assigns or assign

d. All of them

25. The following is considered fraud or fraudulent:

a. Failure to disclose the facts where there is duty to reveal them

b. The usual exaggeration in trade, when the other party had the opportunity to know the facts

c. Misrepresentations made not in bad faith

d. "Caveat Emptor"

26. The following, except one, are the characteristics of void or inexistent contract. Which is the exception:

a. The defense of illegality of contract is available to third persons whose interest is not directly affected

b. They are not subject to ratification

c. The right to raise defense of illegality cannot be waived

d. The action of defense for declaration of their nullity or in existence of the contract does not prescribe

27. Statement I: Violence or intimidation, although employed by a third person who did not take part in the contract, annuls an obligation. Statement II: Misrepresentation by a third person does not vitiate consent, unless it created substantial mistake and the same is mutual.

a. Both statements are correct.

b. Both statements are wrong.

c. Only Statement I is correct.

d. Only Statement II is correct.

28. The stages of a contract according to the order of their occurrence are:

a. birth, conception, consummation

b. conception, consummation, birth

c. conception, birth, consummation

d. consummation, conception, birth

29. Severino, orally sold a one-square meter lot for P475.00 to Benedicto, chairman of Barangay Mapayapa, who was officially authorized in a barangay resolution to look for and buy a lot where the barangay would construct a barangay marker. Since Benedicto did not have sufficient cash at that time, he told Severino that he would give the amount the following day. The next day, Benedicto went to the place of Severino to pay the price of the lot but Severino refused to accept it, saying that the sale is unenforceable not being in writing.

a. The sale of the lot is enforceable although not in writing because the price is less than P500.00.

b. The sale is enforceable because Benedicto was duly authorized to buy the lot through a resolution which is in writing.

c. The sale of the lot is void not being in a public instrument

d. The sale is unenforceable since the sale of real property must be in writing regardless of the price to be enforceable.