[24] MIDTERM

On December 1, 2018, Miss Cersei, a professor of Manila College, engaged the services of Jon Snow
Transport to bring her class to Calamba, Laguna in time for the Rizal Day Celebration on December 30,
2018, which would start at nine o’clock in the morning. The contract signed by the parties specified that
a bus would be on school premises at six o’clock in the morning and would leave at exactly 6:30 a.m.
However, Jon Snow Transport failed to send a bus on the date, time and place agreed upon. As a result,
Miss Cersei and her class failed to attend the celebration. Miss Cersei sued Jon Snow Transport for
damages on the ground of delay in the performance of its obligation. For its defense, Jon Snow
Transport claimed there was no delay because Miss Cersei never made a demand.
A. There was no delay because Miss Cersei did not make any demand.
B. Jon Snow Transport was in delay since demand was not required.
C. Miss Cersei should have obtained the services of another company when the bus of Jon Snow
Transport did not arrive.
D. Miss Cersei should have reminded Jon Snow Transport from time to time before the due date of its
obligation to provide for a bus.

25] MIDTERM
Charmaine bought a plane ticket for Vietnam from ABC Travel Company. Later, however, Charmaine
cancelled her flight to Vietnam because of the SARS epidemic in the place. Upon being informed of the
cancellation, ABC Travel Company told Charmaine that she could get the refund of her plane ticket
within two days. In the meantime, she thought of going instead to Malaysia so she called ABC Travel
Company to send her a ticket for Malaysia promising to pay the cost of the ticket in two days. Assuming
that the refund due to Charmaine for her unused plane ticket to Vietnam is of the same amount as the
cost of his plane ticket to Malaysia, Charmaine two days later need not pay ABC Travel Company by
reason of:
A. Confusion
B. Novation
C. Compensation
D. Condonation

[15] Midterm
On May 1, 2010, Faye executed a written undertaking obliging herself to deliver 100 sacks of rice to
Jenny in May 31, 2010. On May 28, 2010, Jenny demanded the delivery of 100 sacks of rice from Faye
but Faye did not comply. The following day, a fire of undetermined origin destroyed Faye's warehouse
together with about 500 sacks of rice stored therein and from which Faye intended to get 100 sacks of
rice for delivery to Jenny.
a. Faye's obligation to deliver 100 sacks of rice to Jenny is not extinguished because Faye was in default.
b. Faye's obligation to deliver 100 sacks of rice to Jenny is extinguished, the cause of the loss being a
fortuitous event.
c. Faye's obligation to deliver 100 sacks of rice to Jenny is not extinguished because she can get 100
sacks of rice from other sources.
d. Faye's obligation is to pay damages because she was in default.

21] Midterm
Harry owes Germione P6,000.00 which is due on May 10, and another debt of P12,000.00 which is due
on May 20. Both debts are unsecured and non-interest bearing and are already due. Harry, however, has
only P3,000.00 which he gives to Germione without informing the her as to which debt the payment
shall apply. Germione also did not indicate on the receipt he issued to Harry to which of the two debts
shall apply. In this case:
A. The payment of P3,000.00 shall be applied to the debt due on May 10 because it was the first to
become due.
B. The payment of P3,000.00 shall be applied to the debt due on May 20 because it is of greater amount.
C. Payment cannot be applied to two debts because it is incomplete.
D. The payment of P3,000.00 shall be applied proportionately in the amount of P1,000.00 to the debt
due on May 10, and P2,000.00 to the debt due on May 20.

23] Midterm
Stephanie obtained a loan of P50,000 from Cindy. The same is payable after 60 days. On the due date,
Stephanie, not having sufficient cash, offered to give either her ring or her bracelet to Cindy. Cindy
accepted the offer. Based on the foregoing facts, which of the following statements is incorrect?
a. The new obligation is alternative obligation.
b. The right to choose the item to be given belongs to Cindy.
c. The original obligation of Stephanie is an obligation with a period.
d. The original obligation of Stephanie is extinguished by novation.

10.] - Midterm
Mary is obliged to deliver 50 sacks of "Dinorado" rice to Joy. The parties agreed that should Mary fail to
perform her obligation as stipulated, Mary will pay a penalty of PHP 11,000. On due date, Mary made a
delivery of 50 sacks of rice but each sack contained a mixture of "Dinorado" rice and another variety of
lower quality. Joy discovered the fraud.
A. Joy may demand the payment of damages in addition to the stipulated penalty only if Mary refuses
to pay the penalty.
B. Joy may demand the payment of damages in addition to the stipulated penalty only if there was a
stipulation with respect to damages.
C. Joy may demand the payment of the stipulated penalty as well as damages although there was no
stipulation on the latter.
D. Joy may demand the payment of the stipulated penalty only.

02] MIDTERMS
Jaja lent Joerds, ₱80,000. However, Joerds offered to give her bracelet, earrings or ring as payment of
the debt a week due from the due date of the original obligation. Jaja agreed to the offer. A day before
the due date, Joerds's ring got accidentally flushed down the drainage because she was wearing it whilst
taking a bath. In this case:
A. Joerds's new obligation is a facultative obligation
B. Jaja may claim one of the remaining objects and has a right to damages or can claim the equivalent
price of the lost ring from Joerds and has a right to damages
C. Joerds does not need to pay for the damages to Jaja for losing the ring
D. Joerds's obligation is now a pure obligation

18] - Midterm
On January 14, Betty obtained a loan of P100,000 from Veronica. The loan is secured by a chattel
mortgage on Betty's car and is payable on December 31, 2014. On September 26, 2014, the car was
taken at a gunpoint from Betty while she was starting its engine at the parking lot of a chocolate shop.

A. Betty's obligation is extinguished. However, Betty must give a property which Veronica may sell to
satisfy her claim.
B. Betty's loan obligation subsists. However, Veronica may demand its immediate payment unless Betty
gives another security.
C. Betty's loan obligation subsists. However, Veronica may not demand immediate payment since the
loss of the security was without the fault of Betty.
D. Betty's loan obligation is extinguished together with the mortgage since the loss of the car was
without the fault of Betty.

[11] - MIDTERM
Grayson and Raven entered into a contract whereby Grayson would deliver 5 pieces of genuine Omega
wristwatches to Raven. Grayson proposed to Raven that should Grayson deliver 5 units of fake pieces of
Omega wristwatches by reason of financial difficulties on his part, Raven would not sue him for damages
on the ground of fraud. Raven accepted the proposal. On due date, Grayson delivered 5 pieces of fake
Omega wristwatches. Upon discovery of the fraud, Raven sues Grayson for damages. Grayson contends
that he cannot be held liable for damages because Raven waive his right to hold him (Grayson) liable on
the ground of fraud if the reason thereof is the financial difficulties of Grayson.
a. Raven cannot sue Grayson for damages because the reason for the waiver is valid, i.e., financial
difficulties of Grayson, which is a valid reason for the waiver.
b. Raven can sue Grayson for the annulment of the contract since it is voidable.
c. Raven can sue Grayson for damages because the waiver he made is void, “Nonetheless”, the
contract is valid.
d. Raven can sue Grayson for the rescission of the contract since it is rescissible.

09] - Midterm
Jhelian is obliged to deliver a specific Toyota car to Jerome. The parties agreed that should Jhelian so
desire, he may deliver his only Lancer car to Jerome as a substitute. Before Jhelian could make any
substitution, the Lancer car was damaged beyond repair through the fault of Jhelian.
a. Jhelian's obligation to deliver the Toyota car is extinguished.
b. Jhelian is obliged to pay damages to Jerome for the loss of the Lancer car.
c. Jhelian is still obliged to deliver the Toyota car to Jerome on due date.
d. Jhelian is obliged to get another Lancer car as a substitute.

[27] MIDTERM
Marielle and Khyla are solidary debtors of Corrine and Stefalie solidary creditors to the amount of
P4,000. On the due date, Corrine renounced in favor of Marielle the entire obligation. Which of the
following is correct?
A. Khyla shall give Corrine P2,000.
B. Stefalie can still collect from Marielle and Khyla P2,000
C. Stefalie can collect from Corrine P2,000.
D. Any of the three
E. None of the above.

30] Midterm
Jesus Ambassadors Ministry (Jam) needs a new modernized design of chairs. They made an order of 50
units of "Abounding" chairs from Victors Furniture and Fixtures Company (Victors) at the prize of
P1,000.00 per unit. However, Victors delivered to Jam 50 units of "Colonel" chairs, a superior brand,
which was priced at P1,500.00 per unit. Victors informed Jam that it will bill thr latter for the "Colonel"
chairs at P1,000.00 only. Jam refused to accept the "Colonel" chairs. Should Victor can or cannot compel
to Jam? Why?
A. Victors can compel Jam to accept the "Colonel" chairs since all that is required of Victors is to deliver
a chair that can serve the same use as the one that was ordered.
B. Victors can compel Jam to accept the "Colonel" chairs since they can benefit greater feom a superior
quality.
C. Victors cannot compel Jam to accept the "Colonel" chairs although they are of superior quality.
D. Victors cannot compel Jam to accept the "Colonel" chairs since Jam is required to pay only the price
of "Abounding" chairs.

33]
On February 20, 2019, Leu, Charles, and Let, solidary debtors, borrowed Php 150,000 from Fu Ng, due
on March 20, 2019. The money borrowed is subject to interest of 2% after due date. The obligation is
evidenced by a promissory note signed by the three solidary debtors. On March 18, 2019, Charles paid
Fu Ng Php 150,000. What are the rights of Charles?
a) Charles has no right to demand reimbursement from Leu and Let.
b) Leu and Let can be demanded of reimbursement by Charles at 50,000 pesos each together with
interest.
c) Charles can demand reimbursement from Leu and Let at 50,000 pesos each only since he cannot
collect interest during the intervening period and the debt was paid before due date.
d) Charles has no right to pay for the share of Leu and Let in the said debt.

[29] MIDTERM
Maria took a public bus on her way home. Although Maria paid for her fare, the bus conductor did not
issue her a ticket. Along the way, the bus met an accident causing a slight injury to Maria and other
passengers. If Maria is to recover damages from the bus owner, the source of the owner's liability is?
A. Law
B. Quasi-delicts
C. Contract
D. Maria cannot recover any amount because no ticket was issued.
[31] Midterm
On June 12, 2018, Peter and David agreed that Peter would deliver a specific agricultural land to David
on October 1, 2018. From June 12 to September 30, 2018 Peter harvested corns from the land worth
P18,000.00. On October 1, 2018 Peter actually delivered the land to David. During that time, there were
unharvested crops valued P10,000.00 that grew beginning October 1, 2018. David had a personal right
against Peter for the delivery of the land and its fruits beginning on:
a. June 12, 2018
b. October 1, 2018
c. September 30, 2018
d. June 13, 2018

[26]
The following obligations are divisible, except an obligation:
a) to give definite things.
b) which as for its own object the execution of a certain number of days of work.
c) which has for its object the accomplishments of work by metrical units.
d) which by its nature is susceptible of partial performance.

03] Midterm
Mark obliges himself to give Eric a house and lot if Eric will marry Georgette before Eric reaches the age
of 30.
I. Mark is liable if Eric marries Georgette before he reaches the age of 30.
II. Mark is liable if Eric marries Georgette at the age of 30.
III. Mark is still liable if Eric dies at the age of 29 because the time specified has not yet expired.
Which statement/s is/are correct?
a. I only
b. I and II
c. II and III
d. I, II and III

[07] Midterm
Kevin receive a check for P10,000.00 drawn against XYZ Bank in payment of a debt due him. Upon
cashing the check, Kevin requested the teller to give him 20 pieces of P500.00 bill and to place the
money in an envelope. As he was in a hurry, Kevin left the bank without bothering to count the cash.
Shortly after reaching his office, Kevin counted the money in the envelope and discovered that it
contained 20 pieces of P1,000.00 bill or an excess of P10,000.00.
A. Kevin does not have the obligation to return the excess of P10,000.00 because it was not his fault that
the teller would pay him an amount in excess of what was stated in the check.
B. Kevin does not have the obligation to return the excess of P10,000.00 because the bank will not likely
know who among the bank clients received such excess amount.
C. Kevin must return the excess of P10,000.00 because he has the obligation to do so under the
principle of solutio indebiti.
D. Kevin must return the excess of P10,000.00 because he has obligation to do so under the principle of
negotiorum gestio.

28 M
D borrowed P50,000 from C. On due date, D did not have any money to pay the debt so he proposed to
C that the latter accept a ring to settle the debt. C accepted the proposal and received the ring.
Immediately after receiving the ring, C sold it to B. D's obligation is to give P50,000 to C is extinguished
by:
a. dacion en pago
b. payment by cession
c. sale
d. application of payment

12] Midterm
Which of the following conditional obligations shall be void?
a. Joy to give Jay her specific car if Jay is not yet married to Ara on December 30, 2020
b. Joy to give Jay her specific car if Jay tops the CPA Examinations
c. Joy to give Jay her specific car if Jay flies
d. Joy to give Jay her specific car if Jay marries Mary

16] Midterm
Patrick stole the carabao of Ronald. Patrick was arrested, tried in court and convicted. Aside from being
sentenced to a prison term, Patrick was also ordered by the court to return the carabao. However, the
carabao died before Patrick could deliver it to Ronald.
a. Patrick is liable to Ronald whatever may be the cause of death of the carabao.
b. Patrick is liable to Ronald only if the carabao died because of Patrick's fault.
c. Patrick is not liable to Ronald if the cause of the death of the carabao is fortuitous event.
d. Patrick has no liability to Ronald whatever may be the cause of the death of the carabao because his
obligation to return the carabao was due to an order of the court and not on his own violation.

[14] Midterm
Alvin, a professional singer, agreed to sing for a fee of P20,000.00 at the birthday party of Casey who
was a fan of Alvin. Due to numerous commitments, Alvin could not go to the party of Casey. He sent Leo,
another professional singer who was known to sing better than Alvin, to sing at Casey's party, and
informed Casey that the latter needed to lay only P10,000.
a. Alvin may validly assign his obligation to sing because the reduced fee was advantageous to Casey
b. Alvin may validly assign his obligation to sing because Leo could perform the obligation better than
him.
c. Alvin may not validly assign his obligation to sing because it is personal in nature.
d. Casey cannot refuse the performance of the obligation by Leo because the obligation to sing is
transmissible since it would not require much effort on the part of either Alvin and Leo who are both
professional singers

19] - Midterm
KR is obliged to give Mae a specific necklace, a specific earrings or a specific bracelet. The parties agreed
that Mae will have the right to choose the thing which will be given to her. Before Mae could make her
choice, the necklace and the earrings are lost through KR's fault, successively. What is the right of Mae?
a. Mae may choose the delivery to her of the bracelet, or the price of the necklace or the price of the
earrings plus damages.
b. Mae cannot choose the price of the necklace or the price of the earrings because the said objects
have already been lost.
c. Mae can only choose to have the bracelet because anyway, KR can still perform his obligations.
d. Mae can only choose to have delivery of the bracelet or the price of the earrings which was the last
item that was lost plus damages.

17] - Midterm
Jhane is obliged to give Mae a specific ring. The parties agreed that Jhane may give a specific watch as
substitute. Which of the following statements is true?
A. If the watch is lost through a fortuitous event before substitution, the obligation is extinguished.
B. If the ring is lost through a fortuitous event after substitution, the obligation is extinguished.
C. If the ring is lost through the debtor's fault after substitution, the debtor shall pay damages.
D. If the ring is lost through fortuitous event before substitution, the obligation is extinguished.

[04]
Jake, Ben and Drew are solidarily liable to Rose for ₱30,000. Jake pays Rose the whole amount due.
Drew, however, is insolvent.
A. Jake alone will bear the share of Drew who is insolvent since he (Jake) made the payment
B. Jake can collect from Ben ₱10,000
C. Jake can collect from Ben ₱15,000
D. Jake can demand a refund of ₱10,000 from Rose pertaining to Drew's share since Drew is insolvent

06]
Under a contract between Ronald and Shelvi, Ronald is obliged to deliver 15 bottles of honey bee to
Shelvi 30 days after the execution of their agreement. On due date, Ronald delivered to Shelvi 15 bottles
of honey bee which he mixed with water.
A. The contract entered into between Ronald and Shelvi is voidable because of the fraud employed by
Ronald.
B. The contract is valid. The fraud employed by Ronald does not affect the validity of the contract, but
Ronald is obliged to pay damages to Shelvi.
C. The contract is void because of the fraud employed by Ronald in the performance of his obligation.
D. The contract is rescissible because of the damages suffered by Shelvi.

08] Midterm
Joel sold his only car to Eisley for P100,000.00 cash. The parties agreed that Joel shall deliver the car
within one week from their agreement. Nothing is mentioned in the agreement on how the car will be
cared for by Joel before delivery.
A. Joel need not to take care of the car because nothing was mentioned in the agreement on how the
car will be cared of.
B. Joel must take care of the car with extraordinary diligence.
C. Joel must take care of the car with the diligence of a good father of a family before delivery.
D. The absence of stipulation on how the car must be cared for renders the sale void because such
stipulation is an essential element of the contract.

05] Midterm
During a flood, the properties of Jeff were saved from destruction by Elly without the knowledge of Jeff
who was then away. Elly incurred necessary and useful expenses in the act of saving Jeff's properties.
For such expenses:
A. Jeff need not reimburse Elly because her act of saving Jeff's property is a gratuitous act that requires
no compensation.
B. Jeff must reimburse Elly although Elly acted without the consent of Jeff.
C. Jeff must reimburse Elly because there was an implied contract between Jeff and Elly.
D. Jeff is not required to reimburse Elly because she acted without his consent.

13] Midterm
Mariah owes Fate P10,000.00. Jelliane offers to pay Mariah's obligation and tells Maria that she need
not reimburse her. However, Mariah does not give her consent to Jelliane's offer not to be reimbursed.
Fate, nonetheless, accepts the payment from Jelliane.
a. The payment is valid insofar as Fate is concerned since she accepted the payment.
b. The payment is not valid because Mariah did not give her consent to Jelliane's offer not to be
reimbursed for the payment.
c. The payment is not valid because it was not Mariah herself who made the payment.
d. The payment will be valid if Jelliane had the intention to reimbursed and Mariah consented to the
payment.

20] - MIDTERM EXAMINATION

Seth has a grains warehouse in Bulacan while Ash has a grains warehouse in Cavite. Seth borrowed 12
sacks of rice worth P12,000.00 from Ash for Seth's customer in Cavite. Later, Ash borrowed 12 sacks of
rice which was also worth P12,000.00 from Seth for Ash's customer in Bulacan. Both the obligations are
due. Transport costs to Bulacan amount to P1,000.00, while those for Cavite amount to P800.00.
a. Seth and Ash need not pay each other since their debts compensated each other.
b. Seth must pay Ash P12,800 while Ash must pay Seth P13,000.
c. Seth and Ash need not pay each other since their debts compensated each other, except for the
delivery charges which Ash must pay to Seth in the amount of P200.00
d. Compensation cannot take place because the debts are payable at different places.

22] Midterm
Which of the following obligations is a pure obligation and is demandable at once?
a. Johan to allow Bri to use Johan's car until December 31, 2019.
b. Johan to allow Bri to use Johan's car until Bri finishes his course in accounting.
c. Johan to give Bri his car. No mention is made when Johan shall give the car.
d. Johan to give Bri a car if Bri finisher his course in accounting.

[32]
G owes the following creditors: Nara, P20,000.00; sid, 30,000.00; and Zerf P50,000.00 D is insolvent so
he offers to assign all his properties (except thcept exempt from execution) to his creditors in payment
of her debt. The creditor accepts the offer and are able to sell the debtor's properties for 70,000.00.
Based on the foreign facts, which of the following statement is incorrect?
a. The special mode of payment is availed of by G
B. G is released from her total liability of P100,000.00 even if there is no stipulation to the effect
c. G is released from hee liability only to the extent of P70,000.00 in the absence of any stipulation
giving her total release.
d . The creditors did not become the owners of G's properties at the time of their assignment.

30] Midterm
Jesus Ambassadors Ministry (Jam) needs a new modernized design of chairs. They made an order of 50
units of "Abounding" chairs from Victors Furniture and Fixtures Company (Victors) at the prize of
P1,000.00 per unit. However, Victors delivered to Jam 50 units of "Colonel" chairs, a superior brand,
which was priced at P1,500.00 per unit. Victors informed Jam that it will bill thr latter for the "Colonel"
chairs at P1,000.00 only. Jam refused to accept the "Colonel" chairs. Should Victor can or cannot compel
to Jam? Why?
A. Victors can compel Jam to accept the "Colonel" chairs since all that is required of Victors is to deliver
a chair that can serve the same use as the one that was ordered.
B. Victors can compel Jam to accept the "Colonel" chairs since they can benefit greater feom a superior
quality.
C. Victors cannot compel Jam to accept the "Colonel" chairs although they are of superior quality.
D. Victors cannot compel Jam to accept the "Colonel" chairs since Jam is required to pay only the price
of "Abounding" chairs.

Question #01 : Midterm Examination

John has a liability of Php 100,000 to Paton who has a son, named Leeton, as his heir. However, Paton
died before he collected the debt. Which of the following statement is correct?
A. Leeton cannot collect because the credit right is personal to Paton.
B. Leeton can collect from John although John and Paton did not agree that the right to the debt will
pass on the heirs of Paton.
C. Leeton can collect only if John and Paton agreed that the right to the debt will pass on the heirs of
Paton.
D. Leeton cannot collect because the law prohibits the transmission of the credit right.