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OBLIGATIONS AND CONTRACTS

6.
Multiple Choice Questions in Obligations and
Contracts
1.

It is the juridical relation resulting from


lawful, voluntary, and unilateral acts by
virtue of which the parties become bound
to each other to the end that no one shall
be unjustly enriched or benefited at the
expense of another.
a.
b.
c.
d.

2.

Agreement
Vinculum juris
Contracts
Quasi-Contracts

3.

a.
b.
c.

7.

This takes place when something is received


when there is no right to demand it, and it
was unduly delivered thru mistake.
a.
b.
c.
d.

a.
b.

Solutio Indebiti
Negotiorum Gestio
Vinculum juris
Prestation

c.
d.

8.
Negligence
Mora solvendi
Mora accipiendi
Compensatio morae

Demand is not necessary to incur delay


when:
a.
b.
c.
d.

5.

If the account is personal


The debtor's acts are fraudulent
The debtor has performed an act
subsequent to the contract, giving
advantage to other persons
d. Creditor must have the right of
return against debtor
In Accion Pauliana Rescission, which
involves the right of the creditor to attack
or impugn by means of rescissory action
any act of the debtor which is in fraud and
to the prejudice of his rights as creditor
provided:

This happened when the creditor make a


demand and the obligor fails to deliver the
thing.
a.
b.
c.
d.

4.

In Accion subrogatoria the creditor may


exercise all of the rights and bring all of the
actions which the debtor may have against
third persons if:

Creditor refuses the performance


without just cause.
The debtor is guilty of nonperformance.
Time is the controlling motive
If the obligation bears interest

In what instance may we consider that


there is no delay?
a.
b.
c.
d.

In civil obligations
In positive obligation
In obligation arising from crime
In natural obligation

It causes the extinguishment or loss of


rights already acquired upon the fulfillment
of the condition, that is, the happening of
the event which constitutes the condition.
In other words, the fulfillment of which will
extinguish an obligation (or right) already
existing.
a.
b.
c.
d.

9.

The debt is due and demandable


There is a failure of the debtor to
collect his own debt from 3rd
persons either through malice or
negligence
The debtor's assets are insufficient
The debtor has performed an act
subsequent to the contract, giving
advantage to other persons

Condition subsequent
Suspensive
facultative condition
positive condition

When the thing deteriorates with the


debtors fault, the creditor may choose one
of the following:
a.
b.

c.

Mutual restitution
Rescission (cancellation) of the
obligation with indemnity for
damages
Suffer the deterioration of the
thing

d.

Institute an action for negligence.

10. It is a future and certain event upon the


arrival of which the obligation (or right)
subject to it either arises or is terminated.
a.
b.
c.
d.

Fortuitous events
Condition
Period
Date and time

II.
1. When the debtor binds himself to pay when his

ANSWER: D

4. When the characters of the creditor and the


debtor are merged in one and the same person,
there is extinguishment of the obligation by:
a. Compensation
b. Merger of Rights
c. Novation
d. Remission

means permit him to do so, the obligation is:


ANSWER: B
a. Conditional
b. Pure
c. Simple

5. Through insidious words or machinations, A was

d. With a Period

able to induce B to enter into a contract which


without them B would not have agreed to it. There

ANSWER: D

is:
a. Undue Influence

2. Contracts which cannot be sued upon unless

b. Fraud

ratified, thus it is as if they have no effect yet are:

c. Mistake
d. Misrepresentation

a. Voidable
b. Rescissible

ANSWER: B

c. Void
d. Unenforceable
6. "A sells to B his lot and house in the city if A
ANSWER: D

decides to transfer and live in the countryside" is an


example of:

3. If the obligation of the debtor is "I will pay

a. Mixed Condition

you my debt after I have arrived from abroad," this

b. Potestative Condition

is

c. Casual Condition
d. Resolutory Condition

a. Unenforceable
b. With a Period
c. Void
d. Conditional

ANSWER: B

7. It is a mode of extinguishing an obligation when


two persons in their own right are creditors of each

ANSWER: C

other.

III.

a. Confusion

1. When the debtor binds himself to pay when his

b. Reformation

means permit him to do so, the obligation is:

c. Compensation
d. Novation

a. Conditional
b. Pure

ANSWER: C

c. Simple
d. With a Period

8. A contract is in the stage of conception when:

ANSWER: D

a. There is meeting of the minds.


b. Negotiations are in progress.

2. Contracts which cannot be sued upon unless

c. The parties come to an agreement.

ratified, thus it is as if they have no effect yet are:

d. The contract is perfected.


a. Voidable

ANSWER: B

b. Rescissible
c. Void
d. Unenforceable

9. If the obligor binds himself to perform his


obligation as soon as "he shall have obtained a

ANSWER: D

loan" from a certain bank, this obligation is:


a. With a Term
b. Conditional
c. Suspensive
d. Resolutory

3. If the obligation of the debtor is "I will pay you


my debt after I have arrived from abroad," this is
a. Unenforceable
b. With a Period
c. Void

ANSWER: B

d. Conditional
ANSWER: D

10. Contracts entered into in a state of drunkenness


or during a hypnotic spell are:
4. When the characters of the creditor and the

a. Void

debtor are merged in one and the same person,

b. Valid

there is extinguishment of the obligation by:

c. Voidable
d. Legal

a. Compensation

b. Merger of Rights
c. Novation

8. A contract is in the stage of conception when:

d. Remission
a. There is meeting of the minds.
ANSWER: B

b. Negotiations are in progress.


c. The parties come to an agreement.
d. The contract is perfected.

5. Through insidious words or machinations, A


was able to induce B to enter into a contract

ANSWER: B

which without them B would not have agreed to


it. There is:

9. If the obligor binds himself to perform his


obligation as soon as "he shall have obtained a

a. Undue Influence

loan" from a certain bank, this obligation is:

b. Fraud
c. Mistake

a. With a Term

d. Misrepresentation

b. Conditional
c. Suspensive

ANSWER: B

d. Resolutory
ANSWER: B

6. "A sells to B his lot and house in the city if A


decides to transfer and live in the countryside" is
an example of:

10.

Contracts

entered

into

in

state

drunkenness or during a hypnotic spell are:


a. Mixed Condition
b. Potestative Condition

a. Void

c. Casual Condition

b. Valid

d. Resolutory Condition

c. Voidable
d. Legal

ANSWER: B
ANSWER: C
7. It is a mode of extinguishing an obligation

11. Delay in the giving or delivering of a thing

when two persons in their own right are creditors


of each other.

a. Mora solvendi ex re
b. Mora solvendi ex persona

a. Confusion

c. Mora accipiende ex re

b. Reformation

d. Mora accipiende ex persona

c. Compensation
d. Novation
ANSWER: C

ANSWER: A

12. Which of the following statements is false?

of

c. When the party seeking resolution can perform


a. Obligations to give definite things and those

only as to part and as to remainder

that are not susceptible of partial performance

d. When the seller cannot return the installments

shall be deemed divisible.

paid to him by the buyer

b. Execution of a certain number of days of work


shall be divisible.

ANSWER: B

c. Accomplishment of work by metrical units are


divisible
d. An obligation to pay a certain amount in ten

16. A defective contract where damage or lesion

annual installments is divisible.

is essential

ANSWER: A

a. Rescissible

13. This contract is without effect unless ratified:

b. Voidable
c. Unenforceable

a. Marriage between first degree cousins

d. Void

b. Contract of sale between two insane persons

ANSWER: A

c. Contract of sale between husband and wife


d. Donation between husband and wife
17. An instrument may be reformed d
ANSWER: B
a. Simple donations inter vivos wherein no
condition is imposed
14. Which of the following contracts is not void ab

b. Wills

initio?

c. When the instrument does not express the true


intention of the parties due to mistake

a. Those whose object is outside the commerce

d. When the real agreement is void

of men
b. That whose object did not exist at the time of

ANSWER: C

transaction
c. That which contemplates an impossible service
d. That which is undertaken in fraud of creditors

18. Three of the following contracts are void.


Which one is not?

ANSWER: D
a. Oral contract of partnership of three partners
and capital contribution is more than P3,000 in
15. Rescission of contract can take place in this

cash

case

b. Written contract contemplating impossible


services

a. When the thing which is the object of the

c. Oral contract of partnership where real estate

contract is legally in the possession of a third

is contributed as capital

person who acted in bad faith

d. Agent's authority to sell land is given orally.

b. When he who demands rescission can return


whatever he may be obliged to restore

ANSWER: A

19. When a third person assumes the payment of


the obligation even without the knowledge and
consent of the debtor but with the consent of the
creditor
a. There is novation
b. There is delegation if debtor is released
c. There is subrogation
d. There is expromission if debtor is released
ANSWER: D

20. Which of the following is not an element of


legal compensation?
a. Debts to be compensated are due and
demandable
b. There is controversy or adverse claim over any
debts to be compensated
c. There are two or more debts of the same kind
d. There are two or more persons who are
creditor or debtors of each other.
ANSWER: B
Question: Why is it important that obligation in
contractsbe faithfully fulfiiled??
Answer: Laws are enacted to have order (or
require the performance of a particular action to
achieve the same) Since the terms and
conditions of a contract are considered the
governing laws between parties, it is necessary to
faithfully fulfill one's obligation, that is, to avoid
the occurrence of dispute. Hence, why do we
have to fulfill our obligations, that is to achieving
order between the parties to the contract.
Question: How do you apply the laws on
obligations and contracts to everyday activities
and
business
dealings?
Answer: We apply laws on obligations and
contracts unconsciously to our daily activities.
One will not notice that in performing a simple
common task you have applied several
principles on obligations and contracts. Like, for

example, buying a piece of pandesal, the buyer


will offer to buy and the seller will accept. At this
point, once the seller and buyer agrees to the
object and price, and their minds have met;
each of them will not just rescind or refuse to
comply. Even without knowledge of law, one will
not just back out from the perfected sale.
Then, after the perfection of the contract of sell;
unknowingly, they will go on to consummate the
same. The buyer will hand the money and the
seller, in return, will hand over the pandesal. A
clear example of reciprocal obligations, isn't?
If the money given is more than the price of the
pandesal, the seller will give the change. That is
because he knows no one should be enriched at
the expense of another; hence, he has the
obligation to return what is not due him. Likewise,
if what was delivered to the buyer is more than
what he paid for, he will return the same under
the same principle, creating an implied
obligation
to
return.
In a simple, but very common, transaction, the
parties are not aware that they are applying the
basic principles of law on obligations and
contracts. They might not be well versed, or
even, have not had any formal education, yet
they apply these simple principles of law
unconsciously. Thus, If you ask: how we apply
laws on obligations and contracts on our daily
activities, we apply it unknowingly, but
instinctively, depending on one's value.