PRELIMINARY EXAMINATION

UNIVERSIDAD DE DAGUPAN
Arellano St.. Dagupan City, Pangasinan

Name: , h Dus
3_Subject Code Student No.
Section: 3)- A-

I. Objective (40%)
the ownership of, and to deliver,
6 1. Oneof the contracting parties obligates himself to transfer money or its equivalent
adeterminate thing, and the other to pay therefor a price certain in
a. Barter b. Sales C Partnership d. Agency

except:
C2. The essential elements of acontract of sale are the following,

a. Consent or meeting of minds

b. Determinate subject matter
c. Written contract
d. Price certain in money or its equivalent
delivery/
b 3. I. A contract of sale is a consensual contract, thus, is perfected by the
II. A contract of sale is perfected by the meeting of the offer and the acceptance upon
thing and the cause which are to constitute the contract

b. Only II is true C. Both are true d. Both are false

a. Only I is true

(4. I. The object of every contract must be determinate as to its kind / obstacle to
I. The fact that the quantity in contract of sale is not determinate shall not be an
without the need
the existence of the contract, provided it is possible to determine the same,
of a new contract between the parties
b. Only II is true c. Both are true d. Both are false
a. Only I is true
(5. I. Sale itself does not transfer or affect ownership; the most that sale does is to create the
obligation to transfer ownership
II The perfection of contract of sale should not, however, be confused with its consummation.
In relation to the acquisition and transfer of ownership, it should be noted that sale is not a
mode but merely a title..
a Only I is true b. Only I is true e. Both are true d. Both are false

6. I.A contract to'sell may not be considered asa contract of sale because the second essential
element is lacking
I. Incontract to sell, what the seller agrees or obliges himself to do is to fulfill his promise to
sell the subject property when the entire amount of the prchase price is delivered to him,

a. Only I is true b. Only II is true C. Both are true d. Both are false

7. The following are examples of document of title to goods, except:

 PRELIMINARY EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellono St., Dagupan City,Pangosinan

a. Negotiabie instrument
b. Bill of lading
C. Dock warrant
d. Warehouse receipt

C8. A contract by virtue of which X, in consideration of the payment of a certain sum to Y,

acquires the privilege of buying from, to selling to, Ycertain properties within alimited time
at a specified price.
a. Contract of sale b. Contract to sell SOption contract d. Conditional sale

A9. [Link] parties in a contract ofsale may stipulate thatownership in the thing shall not pass to
the purchaser until he has fully paid the price X
II. Payment of the purchase price is essential to the transfer of ownership as long as the
property sold has been delivered

a. Only Iis true b. )Only II is true C. Both are true d. Both are false

(10. Aoffered for sale to B20 cavans of XYZ rice and fixed the price per cavan at P100over the
price offered at W'sstore in La Trinidad Public Market. The price is:
a. Not certain because the price at La Trinidad Public Market is not stated
B. Certain because it has reference to another thing which is certain
C. Certain because there is a price ceiling for price of rice
d. Not certain so the court may fix the price

C 11. One of the following is not included in absolute incapacity

a. Minor
[Link]
c. The guardian, the property of the person or persons who may be under his guardianship
d. Demented persons

A 12. The following are the obligations of the yendor, except:

á To transfer the ownership of the thing sold at the time of meeting of the minds
b. Todeliver the thing
c. To warrant the object sold against eviction and hidden defects/
d. To take care of the object sold pending delivery
13.S sold his only car with plate number XYZ123 to B. There was no fixed date for the
performance of their respective obligations. The obligation of Sas vendor is:
a. To wait for the buyer to pay the price before he delivers
To deliver the car within a reasonable time
C. To deliver the car after one month
d. Topay for damages if the car was not delivered within one month
 PRELIMINARY EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dagupan City, Pangasinon
14. 5 sold to a n a deed of sale is parcel o
land, aferwards, SsoId ne same land to B n
deed of sale who was aware df the sale to A. thereafter, took possession annoher
registered the sale in his name. The parcel of landB,shall belong to:
thereof and
a: A, because he has the oldest
title lard - lano uole
b. B, because the sale to him was in
deed of sale
C. B, because he was the first
d. possessor of the land
B, because he first registered the sale in his favor 04 TiHe
C 15. I. Aperson who does nothave
actual possession of the thing
possession by the execution and delivery
II As a general rule,the
soldcarnnot transfer constructive
of a public instrument
of the thing subject of a execution of a public
instrument amount to a constructive delivery
contract of sale
a. Only I is true b. Only II is true e )Both are true d. Both are false
C, 16. Which of the
negotiation?
following documents of title requires endorsement and delivery for its
a. A
warehouse receipt which states that the goods are to
b. A bill of lading
which states that the goods are to be be delivered to bearer.
person but such person indorsed blank.
it in delivered to the order a specified
of
ÇA
warehouse receipt which states that the goods are to be delivered to
d.
indorsed
A bill
it to a specified
person. bearer but the
of lading which
states that the goods are to be bearer
A 17. A
unilateral delivered to a specified person.
effect or legalpromise or offer to sell or to buy a thing
bound. Such unaccepted offer is calledwhich is not accepted creates no juridical
a. Policitation
b. Solicitation
A 18. The
prescriptive period for
Redemption d. Revolution
specified in the instituting actions based on a
contract, which contract,
is: and in the absence of
such period,breach of express
rulewarranty
the genéral is that
on rescission of
a. 4 years
b. 5 years
c. 6 years
19. If a . 10 years
movable
to property is sold
belong
the person: separately to two or more different
a. who in vendees, ownership shall
b. who in good faith first paid the
C. who in good faith first recorded purchase
the sale inprice in full
d, good faith presents the the Registry Property
who in good faith first oldest title of
C20. The
took possession of the
vendor shall be liable for the property
present, except. death of the animal sold
when the following
requisites are
 PRELIMINARY EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dogupan City, Pangasinan

a. The disease existed at the time of sale.

b. The disease is the cause of the death of the animal.
c The disease must be redhibitory.
d. The animaldies within 3 days from the time of purchase/
t note
Analytical (60%)
1. On Sept. 13, 1951,Atkins, Kroll and Co. offered to the respondent 1,000cartons of sardines,
subject to reply by Sept. 23, 1951. The respondent acceptedthe offer uncon- ditionally, and
delivered his letter of acceptance on Sept. 21, [Link]ér, in view of ashortage in the
catch of sardines by the packers in California, petitioner failed to deliver the commodities it
had offered for sale. Respondent now sues for damages. Among the defenses alleged was
that there was a mere offer [Link], and that therefore the contract of sale had not yet been
perfected.

Is Atkins, Kroll and Co. correct? Explain. Ty

2. S was the owner of 15 sacks of rice offered for sale at her store situated on a street near the
public market. A certain person approachedS and bought it from her at P26 per sack, which
the buyer promised to pay as soon as he would receive the price of his adobestones which
were then being unloadedfrom a truck parked at the opposite side of the street. The seller
believed this, and upon request of the buyr, th seller ordered the loading of the rice on the
truck, the seller continually watching the loading, waiting for the buyer to give to her the
purchase price. But the buyer did not showup. So the seller,ordered the rice uloaded from
the truck. She was therefore surprised when the truck caretaker objected on the ground that
he himself had purchased the rice from an unnamed individual at P26 a sack, and being the
owner nowof the rice, he was entitled to its possession. Nevertheless, the seller continued to
unload the rice. The caretaker of the truck then sued her for the custody of the rice.

Who is entitled to the rice?

3. The Spouses Gaspar, who deal in second-hand vehicles, purchased the Pajero from Yu for
P1,000,000.00,documented by a manager's check and a receipt signed by Salitaon July 12,
2002. Rocky Gaspar, the son of the Spouses Gaspar, sold the Pajero to Disirni for P1,160,000.00.
Disini made a downpayment on July 22, 2002, and completed the payment on July 30, 2002,
after the Spouses Gaspar obtained a Motor Vehicle Clearance Certificate and registered the
Pajero in Disiri's name.
On June 30, 2003, the police confiscated the Pajero, revealing it was stolen from the Office of
the President, with its chassis number altered. LDisini informed the Spouses Gaspar, who
promised to refund him. They managed to reimburse P400,000.00, (P150,000.00 of which Yu
reimbursed to Spouses Gaspar) but failed toreturn the fullamount due to lack of funds.
Disini hence filed a complaint for the unpaid balance agaisnt Spouses Gaspar. Spouses
Gaspar then filed a third party claim against Yu and Salita. They argue that the basis of Yu
and Salita's liability is the written "Contract of Sale" (COS) which they entered into.
 PRELIMINARY EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dagupan Clty. Pangasindn

On the other hand, Yu denies liability and claims that as seller, he is only liable for the subject
Pajero's hidden defects which do not exist in this case. He adds that the conditions necessary
for the application of the implied warranty against eviction are not present. In any event, Yu
further claims that any cause of action that Spouses Gaspar may have had based on said
implied warranties have long prescribed.
Spas (oasor is ,ase
[Link] te Sollar mast wavlt
Whois Iiable to pay the remaining balance? hhcaee i^

4. On May 5, 1983, Spouses Manlan(petitioners) bought a500 square meter portion from
Manuel Orbeta for P30,000.00, paying P15,000.00 upfront and taking possession of the land.
On October 21, 1986, the Orbetas (excluding the deceased Manuel Orbeta, represented by his
wife) sold a 714 square meter portion to Spouses Beltran (resporndents) through a Deed of
Absolute Sale (DOAS). On November 20, 1990, the respondents acquired the remaining 500
square meters, also through aDOAS. The property was registered urnder the respondents'
name with Transfer Certificate of Title (TCT) No. 20152 on January 28, 1991. Respondents
demanded that the petitionersvacate the property; the petitioners refused, leading to an
action for queting of title and recovery of possession.
The Regional Trial Court (RTC) ruled in favor of the respondents, ordering the petitioners to
vacate after reimbursement for improvemerts. The Court of Appeals (CA) affirmed the
RTC's decision. The petitioners elevated the case to the Supreme Court, arguing the
applicability of double sale rules, bad faith by respondents, and fraudulent DOAS due to
defective notarization.

Was therea double sale? Is the sale without proper notarization valid?
5. On May 3, 1955, Perfecto A. Tabora purchased a set of American Jurisprudence (48 volumes
with 1954 pocket parts) and a General Index (4 volumes) from Lawyers Cooperative
Publishing Company. It was provided in the contract that "title to and ownership of the books
shall remain with the seller until the purchase price shall have been fully paid. Loss or
damage tothe books after delivery to the buyer shall be borne by the buyer". The total price
amounted to P1,675.50, plus P6.90 for freight, totaling P1,682.40. Tabora made a partial
payment of P300.00, leaving a balance of P1,382.40. The books were delivered to Tabora's law
office in Ignacio Building, Naga City, on May 15, 1955.
That night, a fire broke out, destroying the block, including Tabora's office and the books.
Tabora reported the incident to the company on May 20, 1955. Tabora did not pay the
remaining balance, leading the company to demand payment and eventually file a lawsuit
for the balance, liquidated damages, and costs of action.
Tabora argued that the loss was due to force majeure and sought dismissal of the comnplaint,
plus moral damages of P15,000.00. The lower court ruled in favor of the plaintiff, ordering
Tabora to pay the balance, liquidated damages, and costs. Tabora appealed, and the case was
certified to the Supreme Court as it involved only questions of law. Is the seller liable for the
 PRELIMINARY EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dagupan Clty. Pangasihan

1OSS Or ie booKS due to te re, gIven tiat ownershup was retaied by tne seer una r
payment?

fartd tÍdefendant, Maria Gay, for P47,000.

0. Plaintift, Leodegario Azarraga, sold two parcels ofP5,00Ó
Payment terms were structured in installmernts upon signing the contract, P20,000
upon delivery of the first parcel's Torrens title, P10,000 Dpon delivery of the second parcel's
Torrens title,and P12,000 oneyear after the secortd title's delivery.

Gay paid the initial P5,000 and the subsequent P20,000 upon receiving the first title. After
P22,000. Azarraga
receiving the second title in March 1921, Gay failed to pay the remainingpurchasing the land
filed aclaim for the unpaid amount with legal interest. Gay admitted to believing it to be 98
of the second parcel,
but argued that Azarraga misrepresented the area reduction
hectares instead of 60 hectares. Gay sought a price to P38,000 and claimed to have
sale, ruled in favor of
paid an additional P4,000. The trial court found no fraud in the
Azarraga, and dismissed Gay's cross-complaint. Gay appealed, arguing errors in the trial
court's decision regarding decet and price reduction.
PREPIEg0 &y
MTTY. wGODNEV . ORNG, CP

(. Calaian Jh.
B, tuulty

D.. Daniel/T Gazdles, CPA

Dean, VSeA
 MIDTERM EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St. Dagupan CIty, Pangasinon
PEGVLoTORY PROnmORk LEGA
Name: PedalvKy
Section:3)- 4SA 03 Subject CodeIb. Student No.

Objective (50%) 4
A. I. Delivery is not essential to perfection of loan
IL Ifthe loan is executed for illegal or immoral or unlawful purpose or use, the contract is void.
a. True, False
b. Both False
g False, True
d. Both True

A 2 LIn Mutuum Borrower acquires ownership of the thing

I. Mutuum is not unilateral contract t
a. True, False
b. Both False
C False, True
d. Both True

3. The bailee is liable for the loss of the thing, even if it should be through a fortuitous event
If he devotes the thing to any purpose different from that for which it has been loaned
. f he keeps it longer than the period stipulated, or after the accomplishment of the use for which the
commodatum has been constituted
Ií the thing loaned has been delivered with appraisal of its value, unless there is a stipulation exempting
the bailee from responsibility in case of a fortuitous event
d. If he lends or leases the thing to a third person,who is a member of his household
A The distinction between a chattel mortgage and a pledge is that in chattel mortgage:
a. The delivery of the personal property is necessary
b. The registration of the property in the Registry of Property is not necessary x
d The excess over the amount due after foreclosure, goes to the debtor/ phea
d. Answer not given.

5. What happens if there are two or more creditswith respect to the same specific movable property according to
Article 2247 of the Civil Code?
a They will be satisfied pro rata, after the payment of duties, taxes, and fees due to the State or any subdívision
thereof.
5 The debtor will have to pay all the credits equally without preference.
C. The creditor with the highest claim will be prioritized, and others will be excuded.
d. The debtor can choose which creditor to pay first.
4 6. Dpledged his Singer Sewing Machine to Cfor P&,000.D was unable to pay the obligation 60 days after it was
[Link] the machine at public auction for P6,000.
a. Ccannot recover the deficiency of P2,000 even there is stipulation that he can. yoid
b Ccan recover the deficiency of P2,000 even without stipulation.
g Ccannot recover the deficiency of P2,000
d. Ccan recover the deficiency of P2,000.

I. Alent money to Bin the amount of P3M and exe cuted amortgage over his house and lot to secure the payment
of the obligation with a condition that if he fails to pay, Ashall became the owner of the property. Is the
stipulation valid?
Yes, because the contract is the law between the parties;
b Yes, because of the doctrine of mutuality of contracts
. No, because it is a case of pactum commis orium;
d. Yes, because of the liberty of contracts.
 MIDTERM EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arelano St.,Dagupan City, Pangasinan

8 According to Article 2239,If there is property owned by two or more persons, inciuding an insolvent debtor,
the insolvent debtors undivided share or interest in the property:
A Will be exempt from the assets to be taken possession of by the assignee.
b. Willbe distributed equally among the co-owners.
Will be sold to pay off the insolvent debtors obligations.
d. Wll be transferred to the assignee as the sole owner.
9. Which of the following statements accurately reflects [Link] property owned by an insolvent debtor is
excduded from insolverncy procecdings?
a Future property acquired after the insolverncy declaration
5. Property held in trust by the debtor as a trústee of an express or implied trust.
c Property owned jointly with another person who is not the debtor.
d. Property obtained as legal support tinder Title VIll of the law.

20. What is the measure of application of the fruits to the interest and principal?
A Appraised at their actual market value at the time of application
b. Apply the fruits according to the price agreed by the parties
. Apply the fruits according to the price given by creditor
d Include the value of the immovable in the application

2. What is the remedy of the pledger i without fault of the pledgee, there is danger, destruction, impairment or
diminution of the thing pledge?
A He may demand the return of the thing upon offering another in pledge
b. Hemay cause the samne to be sold at publicsale
C. All of the above
d. None of the above

p 12 What is the remedy of the pledgor if without fault of the pledgee, there is danger, destruction, impairment or
diminution of the thing pledge?
A Hemay demand the return of thething upon offering another in pledge
b. He may cause the same to be sold at public sale
C. All of the above
d. None of the above

13. Which of the following statements is true?

Any stipulation in a contract of pledge authorizing the pledge to sell the thing pledged if the pledgor carnot
pay is void.
b. In mortgage, the mortgagee is entitled to the entire proceeds of the sale of the thing mortgaged.
C In mortgage and in pacto de retro sale, the title to the property which is the subject matter of the contract is
transferred to the other party.
. Real estate mortgage is an accessory contract.

0 14. In real estate mortgage, the mortgagor can sell the property mortgaged
a. Only if with the oral consent of the mortgagee
B. Only if with the written consent of the mortgage
If not prohibited to sell
d. Even without the consent of the mortgagee

0 15. Allof the following are Differences between Antichresis and Real Mortgage, EXCEPT.
A In antichresis, the property is delivered to tie creditor, whereas in mortgage,. the debtor usually retains
possession of the property.
b. In antichresis, the creditor, unless there is a stipulation to the contrary,is obliged to pay the taxes and
charges upon the estate. Whereas in mortgaye, the creditor has no such obligation. /
C. In antichresis, the creditor acquires the rigt:.to receive the fruits of the property, while in mortgage, the
creditor does not have any right to receive tl e fruits.
d. All of the given options are correct.
 MIDTERM EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St. Dagupan City, Pangasinan

16. Aborrowed P30,000 from B, and as security, he

necklace. On due date, A paid P20,000. As a result,
pledgedhis ring, pair of earrings and
a. A can demand the return of one (1) of
b. Acan demand the return of any two (2)theofthings pledged
C. Acan demand the return of the ring the things pledged
d Acannot demand the retun of any of the things pledged
C 17. A mortgaged his residential land to Bas a
guarantee for the payment of P400,000 obligations to B. They agreed
that Ashould not sell the larnd while the obligatiÍn
the land from A. Which is correct?
exists. Before the maturity of the mortgage, Coffered to buy
a. A cannot sell the land to C because of the agreemnent not to sell
6. A can sell the land to Conly if Bconsents in
writing
C. Acan sell the land to C despite the agreement not to sell
d. A carnnot sell the land to Cunless Apays the obligation
18. S, minor of 16 years old, sold her bracelet to Bfor P8,000. Later, B, needing
fee, borrowed P15,000 fromCand asa security, pledged the bracelet tò the money to pay her daughters tuition
into auction sale of the bracelét in favor of D for PM0,000 only. Which of the latter. B failed to pay C resulting
a. The title of B over the bracelet is not valid, hence the pledge, as following statements is correct?
well as the sale of said bracelet is likewise
defective. The pledgor must be the owner of the thing pledged.
b. The deficiency .of P5,000 may still be recovered by Cfrom Bif there is a stipulation to this
Ccan no longer recover the deficiency of P5,000 from B. The pledge together with the sale effect. X
voidable title of B is valid because it is not yet annulled. is valid. The
d. IfD was a purchaser in bad faith as he knew of the defective title of B over the
will not pass to him (D).
bracelet from S, ownership

19. I. A stipulation prohibiting the owner from alienating the immovable mortgaged shall be
I. The equity of redemption refers to the right of the mortgagor to redeem the void.
certain period of time after it was sold to third person. mortgaged property within a
A First statement is true, second statement is false.
b. First statement is false, second statemernt is true.
C. Both statements are true.
d. Both statements are false.

20. I. The right of redemption refers to the right of the mortgagor to redeem the mortgaged property after his
default in payment but beforethe sale. frr fuhchatiy
II The registration in the Registryof Property is necessary for the validity of a contract of real estate mortgage.
a First statement is true, second statement is false.
b. First statement is false, second statement is true.
C. Both statements are true.
A. Both statements are false.

A. LExcept in case of sale of personal property in installments, if the proceeds of the sale is less than the principal
obligation, the creditor-Mortgagee can recover the deficiency. T
IIA borrowed P100,000 from Bpayabie in 10 equal monthly installments. To secure payment of the loan, A
executed ehattel mortgage on his Mercedes Benz car. If Aviolates the condition of the mortgage, and the car
was foreclosed and sold atapublic auction but the proceeds is less than the collectible amount, Bcannot recover
the deficiency.
A. First statement is true, second statement is false.
b. First statement is false, second statement is true.
C Both statements are true.
d. Both statements are false.

22 These are the obligations of the antichretic areditor, FXCEPT

To pay totally what he owes to the creditor, )
 MIDTERM EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dagupan City, Pangasinan

b. To ender an account of the fruits to the debtor

C.
To bear the expenses necessary for preservation and repair
d. To pay the taxes and charges upon the estate, unless there is a stipulation to the contrary.
23. What is the effect if th¹ thing pledged' is returned to the owner or pledgor?
a. The contract of pledged remains to be valid as long as the parties agree, and provided the obligation
has not yet been fulflled.
b. The contract of pledge will remain valid as between the parties but not binding anymore as
against third persons.
c. The contract of pledge is extinguished. Unless there is stipulation to the contrary because return of
the thing pledged is only prima facie.
d. The contract of pledge is extinguished. Any stipulation to the contrary is void.

24. There is Criminal responsibility if the Pledgor or Mortgagor perform one of the following:
By offering the thing as unencumbered which he knew wete subject of some burden.
b. By refusing to deliver the thing after the parties have already signed the contract of mortgage or
pledge.
C. By using the thing without authority of the pledgee or mortgagee of the thing pledged or mortgaged.
d. By misrepresenting himself to be the depositary thereof.
25. Under the law on pledge, there is a prima facie presumption that the thing pledge has been
returned by the pledgee to the owner if
The property is found in possession of the pledgee.
b The property is found in possession of the debtor.
The property is found in possession of a third person by common agreement
d. The property is found in possession of the owner.

26. Mr. Kwon wants to extinguish thie contract of pledge in favor of his friend, Mr. Lee. The problem, however
of Mr. Kwon is that he can no longer find Mr. Lee for the return of the thing pledge. Mr. Boo ther advised
him that a statement in writing by the pledgee renouncing or abandoning the thing pledged is sufficient
to extinguish the pledge. Is the. advice of Mr. Boo correct?
a. Correct. But there must be acceptance on the part of the pledgor, and the thing pledged is physically
returned to the owner later on. The pledgee becoming a mere depositary.
b. Correct. But the parties imust both agree and sign the statement in writing. The pledgee becoming a mere
depositary.
G. Correct. But only if the obligation has already been fulfilled by the main debtor. The pledgee becoming
a mere depositary.
A. Correct. There is no acceptance necessary, and the thing pledge need not even be physically returned.
The pledgee becoming a mere depositary.

27. It is the right which the vendor reserves to himself, to reacquire the property sold.
conventional redemption
b. legal redemption
C. rescission
d. compensation

28. Chan pledged his Rolex Watch to Jihoon. They want to know what is needed to make the said contract
binding as against third persons. What will you advise them?
The Descriptionof Pledgeand the date of Pledge must appear in a Public Instrument.
b. The Rolex Watch must be placed in the possession of the Creditor or of a Third Person by Common
Agreement.
C The Contract of Pledge must be made kngwn to all interested persons.
d. They need to record the instrument in the Registry of Deeds.
 MIDTERM EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St.,Dagupan City, Pangasinan

29. What is the limitation when to exercise the right of redemption?

a. 4 years
b. it shall not exceed 10 years
. after a final judgement, it shall be exercised within 30 days
d. all of the above statements are the rules regarding the right to redemption.

30. The creditor/pledgee has the following rights, except to:

a Use the thing pledged even without authority if such use in necessary for its preservation
paid.
b. Retain the thing in his possession until the debt is default of the debtor in the payment of his debt
Automatically appropriate the thing pledged upon
for the preservation of the thing.
d. Demand reimbursement of the expenses made

sentences, stating your answer, explanation or basis

I. Analytical (50%). Answer each question with at least 3 No answer is equivalent to a demerit.
and concusion. No explanation does not merit any points.
share V2 B sold his interest in the land to X.
However, A and C
A, B, Cco-oWnerS. A's share Y. B's share . C's
have the right to redeem). If they cannot agree on the portion
1.
both wanted to redeem. (As co-owners they may them - what would be the final sharing?
of the share of B which will be redeemed by both of

treatment.
F to enable to bring his wife from Tarlac to PGH for
2. Rupon request loaned his passenger jeepney to PGH, people stopped the passenger jeepney and R allowed
On the way back to Tarlac after leaving his wife in
them to ride accepting payments from them just as in the case of ordinary passenger jeepney. As he was
Pinatubo. The jeep was wrecked. What do you
crossing Bamban, Tarlac, there was an on rush of lahar from Mt. pay R for the use? Is F liable toR for the loss
to
call the contract that was entered into by R and F? Is F obliged
of the jeep?

million for the hospital expenses during the

3. A, an insolvent, owes P500,000 in favor of a funeral parlor, P1
cancer illness of his late wife, and P100,000 in favor ofa pedestrian whom he had hurt while driving his car
has only P600,000 and an
he
carelessly and for which he was held criminally and civilly liable. Unfortunately,
the order of preference of the various
automobile, the purchase price of which he has not yet paid. Give
creditors involved.

When D defaulted, C extrajudicially

4. D obtained a loan from C secured by a REM over a parcel of land.
foreclosed the property. C was declared the highest bidder in the auction. On 29 Oct. 1993, C caused the
for annulment of the extrajudicial
registration of the certificate of sale. On 09 Nov. 1994 D filed a complaint
foreclosure and auction sale. Can Dredeem the property beyond the one-year redemption period?

5. The Gulf Plantation Co., to secure a loan rotexceeding P165,000, constituted a pledgein favor of the Philippine
National Bank. The document was prepared on the customary blank form oYpBedge. It was entered into on
Aug. 24, 1918, and endorsed on Feb. 24, 1921 by the Register of Deeds with the words "received this 24th day
of Feb. 1921, at 9:30 A.M. The property was never placed in the possession of the bank. Furthermore, the
property consisted of some bales of henp, and the rest were all real properties consisting of buildings and
lands. Is the pledge valid?
 MIDTERM EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dagupan City, Pangasinan

P
from the petitioner. By way of security, the parties verbaly
6. The respondent in this case borrowed money of the property, cultivate it, then use the earnings from
agreed that petitioner would take physical possession was further agreed that upon full payment of the loan, the
the cultivation to pay the loan and realty taxes: It property to other
The petitioner, however, sold the and
petitioner would return the property to the respondents.
RTC for annulment of sale and transfers relied on the
Thus, the respondents filed before the claim of the Revilla
people.
(antichresis) they had with the petitioner. Petitioner argues that the antichresiscontract of antichresis
agreement thus, it is yoid under Art. 2134 of the
NCC:Isthe
spouses was not reduced into writing,
void in this case?

Prepared bv
Atty. Weddanever D. Comel, CPA

Checked by:

Dr. Dariel.
 DEOAG SEMI-FINAL EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dagupan City, Pangasinan

Name:
Section: Subject Code Student No.

Objective (50%)

[Link] as a research computer engineer with the Institute of Computer Technology, a government agency. When
not busy with his work, but during ofice hours, he developed asoftware program for law firms that will allow efficient
monitoring of the cases, which software program is not at all related to his work. Assuming the programn is patentable,
who has the right over the patent?
X
Institute of Computer Technology;
C. Neither Xnor the Institute Computer Technology can claim patent right over the invention;
d. Xand the employer of Xwill jointly have the rights over the patent.
2. Xinvented a device which, through the use of noise, can recharge a cellphone battery. He applied for and was granted
a patent on his device, effective within the Philippines. As it turns out, a year before the grant of X's patent, Y, also an
inventor, invented a similar device which he used in his cellphone business in Manila. But Xfiles an injunctive suit
against Yto stop him from using the device on the ground of patent infringement. Will the suit prosper?
a. No, since the correct remedy for X is a civil action for damages.
No, since Y is a prior user in good faith.
C. Yes,since Xis the first to register his device for patent registration.
Yes, since Y unwittingly used Xs patented invention.
3. Compulsory Licensing of Inventions which are duly patented may be dispensed with or will be allowed exploitation
even without agreement of the patent owner under certain circumstances, like national emergency, for reason of public
interest, like national security, etc. The person who can grant such authority is -
The Director General of the ntellectual Property Office;
The Director of Legal Affairs of the Intellectual Property Office;
The owner of the Patent right;
d. Any agent of the owner of the Patent right.
4. "Eagleson Refillers, Co.," a firm that sells water to the public, opposes the trade name application of "Eagleson
Laundry, Co.," on the ground that such trade name tends to deceive trade circles or confuse the public with respect to
the water firm's registered trade name. Will the opposition prosper?
a. Yes, since such use is likely to deceive or confuse the public.
b. Yes, since both companries use water in conducting their business.
No, since the companies are not engaged in the same line of business.
d. No, since the root word "Eagle" is a genericname not subject to registration.
The"test of dominancy" in the Law on Trademarks, isa way to determine whether there exists an infringement
of a trademark by

Determining if the use of the mark has been dominant in the market;
Focusing on the similarity of the prevalent features of the competing marks which might create confusion;
C. Looking at the mark whether they are similar in size, form or color;
d Looking at the mark whether there is one specific feature that is dominant.
6. T is the registered trademark owner of "CROCOS" which he uses on his ready-to-wear clothes. Banking on the
popularity of T's trademark, Bcame up with his own "CROCOS" mark, which he then used for his "CROCOS" burgers.
T now sues Bfor trademark infringement but Bargues that his product is a burger, hence, there is no infringement. Is
Bcorrect?
aIDADD

SEMI-FINAL EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dagupan City, Pangosinan

No, since the owner of a well-known mark registered in the

díssimilar kinds of goods. Philippines has rights that extends even to
b Yes, since the right of the owner of a well-known mark registered in the
which are not of the same kind. Philippines does not extend to goods
C. Yes, as B was in bad faith in coming up with his own "CROCOS" mark.
d. No, since unlike T, he did not register his own "CROCOS" mark for his product.
7 In intellectual property cases, fraudulent intent is not an element of the cause of
action except in cases involving:
Trademark infringement
b Copyright infringenment
C. Patent infringement
d. Unfair competition ¢
8. Under the Intellectual Property Code, lectures, sermons, addresses or
whether or not reduced in writing or other material forms, are regarded as dissertations prepared for oral delivery,
Non-original works.
b Original works.
C. Derivative works.
d. Not subject to protection.
9 X, an amateur astronoer, stumbled upon what appeared to be massive
volcanic eruption in Jupiter while
peering at the planet through his telescope. The following week, X, without notes, presented
before the Association of Astronomers of the Philippines. To his dismay, he later read arn a lecture on hisfindings
written by Y, a professional astronomer, repeating exactly what X discovered without any article in a science journal
attribution to him. Has Y
infringed on X's copyright, if any?
a No, since X did not reduce his lecture in writing or other material form.
Yes, since the lecture is considered X's original work.
No, since no protection extends to any discovery, even if expressed, explained, illustrated, or embodied ina
work.
d. Yes, since Y's article failed to make any attribution to X.

10. X came up with a new way of presenting a telephone directory in a mnobile phone, which he dubbed as the
"iTel" and which uses lesser time for locating names and telephone numbers. May X have his "iTel"
name? copyrighted in his

No, because it is a mere system or method.

Yes, because it is an original creation.
C. Yes, because it entailed the application of X's intellect.
d No, because it did not entail any application of X's intellect.
11. Apart from economicrights, the author of a copyright also has moral rights which he may transfer by way of
assignment. The term of these moral rights shall last
a During the authors lifetimne and for 50 years after his death.
b Forever.
C. 50 years rom the time the author created his work.
d. During the author s lifetime.
12.
T,an associate attorney in XYZ Law Office, wrote anewspaper publisher aletter disputing acolunnist's claim
about an incident in the attorney's family. Tused the law firmn's letterhead and its computer in preparing the letter. T
also requested the firmn's messenger to deliver the letter to the publisher. Who owns the copyright to the letter?
 SEMI-FINAL EXAMINATION
UNIVERSIDAD DE DAGUPAN
ince he is the original creator of theArellqno
[Link]
Pggupgn City, Pangasinan
the letter.

A
C. The law office since it was an employee and he wrote it on the firm's letterhead.
d. The publisher to whom the letter was sent.
13. The Fair Use Doctrine allows others to utilize copyrighted works under certain conditions. The factors to
consider whether use is fair or not would be the purpose and character of the use, nature of the copyrighted work,
amount and substantially of the portions used, and else?
Effect of the use upon the creator of the work;
Effect upon the potential market of the work;
Effect of the use upon the public in general;
d. Effect of the use upon the class in which the creator belongs.
14. X'spainting of Madonna and Child was used by her mother to print some personalized gift wrapper. As part
of her mother's efforts to raise funds for Bantay Bata, the mother of Xsold the wrapper to friends. Y, an entrepreneur,
liked the painting in the wrapper and made many copies and sold the same through National Bookstore. Which
statemernt is most accurate?

Ycan use the painting for his use because this is not a copyrightable material;
Xcan sue Y for infringement because artistic works are protected from the moment of creation;
Works of art need to be copyrighted also to get protection under the law;
Y can use the drawing even though not copyrighted because it is already a public property having been
published already.
15 LThe Fair Use Doctrine is a defense often employed by the defendant in trademark infringement cases.
I Formulas, inventions, and processes are not considered forms of intellectual property.
Both are true
b. True, False
Both are false
d. False, True

16. I. Copyright infringement is the act of stealing someone's ideas or words and passing them off as ones own.
I. Software, video games, multimedia works, and Web pages can all be copyrighted. T
Both are true
b. True, False
C. Both are false
d. False, True

17 L The fair use doctrine allows portions of patented materials to be used with permission under certain
circumstances.
I. Two software manufacturers could concevably develop separate programs that perform the same functions in a
nearly identical manner without infringing the other's copyright.
a. Both are true
True, False
C. Both are false
d. False, True

18. I. Copyright law protects authored works such as art, books, and film. N T
I The World Trade Organization developed the Agreement on Trade-Related Aspects of Intellectual Property Rights
to establish the minimum levels of protection that each government must provide to the intellectual property of all
WIO members. V T
 SEMI-FINAL EXAMINATION
UNIVERSIDAD DE DAGUPAN
h are true Arellano St., Dagupan City, Pongasinan
C Both are false

d. False, True
19 I. Reverse engineering can only be applied to computer hardware, not
I. Opern source code is any program whose source code is made available forcomputer software.
use or modification, as users or other
developers see fit.
a. Both are true
b. True, False
Both are false
False, True

20. The process of taking something apart in order to understand it, build a copy of it, or improve it is
called
a. plagiarism (Breverse engineering patent infringement d. decompiling
21. Refers to the existing body of knowledge available to a person of ordinary skill in the art.
a. Prior experience b. Known facts c. Body of practice d/Prior art
22. One of the tests that an invention must pass to be eligible for a patent is
a. it must be a machine
b it must be economical to produce
it must be capable of providing economic benefit
d it must not be obvious to a person having ordinary skill in the same field
23. The following refers to the statutory classes of patentable inventions, except for
this.
a product, such as a machine, a device, an article of manufacture, a
b a process, such as a method of use, a method of manufacturing, a
composition of matter, a microorganism
process
non-biological proçess, a microbiological
C. computer-related inventions
discoveries and scientific theories

24. It is not considered in an application for patent filed by any person who has
previously applied for the same
invention in another country which by treaty, convention or law affords similar privileges to Filipino citizens.
a. the local application expressly claims priority
b the international application expressly claims priority
it is filed within 12 months from the date the earliest foreign
d
application was filed
a certified copy of the foreign application together with an english translation is filed within six months
the date of filing in the Philippines from

25. A test whether the person to whom it is addressed could, by following the
directions therein, put the invention into
practice.
a. substantive examination
test for enabling disclosure
C.
dominarncy test
d. holistic test
26. Any interested person may, upon payment of the required fee, petition to cancel the patent or any
parts of the claim, on any of the following grounds, exce for this. claim thereof, or
a that what is claimned as the invention is not new or patentable v
b. that the patent does not disclose the invention in a manner sufficiently clear and complete for it to be
out by any person skilled in the art carried
that the patent is contrary to public order or morality
that the patent is contrary to criminal acts or fraud
pAD D

SEMI-FINAL EXAMINATION
UNIVERSIDAD DE DAGUPAN
Arellano St., Dagupan CIty, Pangaslnan

are equivalent to the elements expressed in it.

a. claims

b evidences
C. opinions
d. articles

28. Any foreign national or juridical entity who meets the requirements of Section 3 and not engaged in business in the
Philippines, wo which a patent has been granted or assigned under this Act, may bring an action for this, whether or
not it is licensed to do business in the Philippines under existing law.
action for infringement of patent
b action for requisition of patent
C. action for abduction of patent
d. action for satisfaction of patent
[Link] limitation of action for damages.
a. more than four years before the institution of the action for infringement
b more than five years before the institution of the action for infringement
not more than four years before the institution of the action for infringement
not more than five years before the institution of the action for infringement
30. The length of time whereina criminal action for petition of infringement shall prescribed.
a. one year from the date of the commission of the crime
b two years from the date of the commission of the crime
three years from the date of the commission of the crime
four years from the date of the commission of the crime

II. Analytical (50%). Answer each question with at least 3 sentences, stating your answer, explanation or basis
and conclusion. No explanation does not merit any points. No answer is equivalent to a demerit.
1 Dr. Nobel discovered a new method of treating Alzheimer's involving a special method of diagnosing the
disease, treating it with a new medicine that has been discovered after long experimentation and field testing,
and novel mental isometric exercises. He comes to you for advice on how he can have his discoveries
protected. Can he legally protect his new method of diagnosis, the new medicine, and the new mnethod of
treatment? If no, why? If yes, how?

2. Cezar works in a car manufacturing company owned by Joab. Cezar quite innovative and loves to tinker
with things. With the materials and parts of the car, he was able to invent a gas- saving device that will enable
cars to consume less gas. Francis, a co-worker, saw how Cezar created the device and likewise, came up with
a similar gadget, also using serap materials and spare parts of the company. Thereafter, Francis filed an
application for registration of his device with the Bureau of Patents. Eighteen months later, Cezar filed his
application for the registration of his device with the Bureau of Patents.
Assuming that it is patentable, who is entitled to the patent? What, if any, is the remedy of the losing party?

3. KPII filed a trademark application for kolin mark under class 9 covering "Television sets and
DVD players."
 SEMI-FINAL EXAMINATION
UNIVERSIDAD DE DAGUPAN
CIopposed KPII's ,Arellano,St.
trademark application 9UnYAthe
based or the registered owner of the KOLIN
sOwnership over the mark is limited only in connection with the goods specified in KECI's certificate
Of registration and those related thereto, KPI insisted that the
"Television sets and DVD players" are not
related to the goods covered by KECI's registered mark. Should KPIl's trademark application be granted?

* Natrapharm Corp. is selling citicoline under the trademark ZYNAPSE that is used for treating stroke and
registered it with the PO. In 2007, It filed a complaint against Zuneca for injunction and trademark
infringement. Zuneca is selling a drug called cartbamezipine under the brand name ZYNAPS that is used to
control seizure disorders. Natrapharm claimed that the term ZYNAPSE was registered in IPO upon
researching that there is no product using the same. On the other hand, Zuneca alleged that it has been using
the term ZYNAPS since 2004 and already secured a certificate of product listing from BFAD. Also, it claimed
that it was impossible for Natrapharm not to have known the existence of ZYNAPS before registration of
ZYNAPSE since Natrapharm promoted its products in the same publication where ZYNAPS was advertised.
RTC ruled in favor of Natrapharm stating that it is the first filer in good faith thus, it may prevent others. Is
the court correct?

5. P&D was granted a copyright on the technical .drawings of light boxes as

however, manufactured similar or identical to the light box "advertising display units". SMI,
by P&D for leasing out to different advertisers. Was this an illustrated in the technical drawings copyrighted
drawings? infringement of P&D's copyright over the technical

6. Diana and Piolo are famous personalities in

instant messaging service which allows them showbusiness who kept their love affair secret. They use a special
to
key is pressed. When Greg, the controller of the see one another's typing on their own screen as each letter
the messages Diana and Piolo sent each other service facility, found out their identities, he kept a copy of all
Reason briefly. and published them. s Greg liable for
copyright infringement?

Prepared by
Atty. Weddanever D. Cornel, CPA

Checked by: