BUSINESS LAW C.Yes.

C.Yes.The debt becomes due at once because the guarantee was lost although through a fortuitous event,
QUIZ ON OBLIGATION –PART I unless the debtor can mortgage another property that is equally satisfactory.
d.Yes.The debts becomes due at once because the periods benefits is given solely to the creditor thereby giving the
1. Whenever in an obligation’s designated, it is presumed to have been established for the benefit of: creditor the right to demand performance even before the due date.
a. Both the creditor and debtor c. The debtor
b. The creditor d. The third party 10. X is obliged to give Y a specific car in July 15, 2000. X did not deliver the car on July 15, 2000. On July 20, 2000, an
earthquake destroyed the building where the car parked and the car was destroyed .Is X still liable?
2. A owes B P10, 000. C pays B P5, 000. Now B and C are the, creditors of A to the amount of P5, 000 each. Suppose A
has only P5, 000.Which is correct:
a. Considering that no demand to deliver was made by Y and the specific thing was lost due to fortuitous event
a. B and C should divide the P5, 0000 equally c.A may choose whom to pay
hence the obligation is extinguished.
b .C should be preferred d.B Should be preferred
b.No. The obligation is extinguished, even if the debtor
c. Yes X is already in legal delay, thus obligation to deliver the lost specified thing is converted into monetary
3. X is under obligation to deliver Y’s car to the latter. However before delivery Z destroys the car. Which one of the
claim for damages.
Following is correct?
d. Yes. The creditor instead demand for a substitute of equivalent value from the debtor
a. X’s obligation to give the car to Y extinguished
b. X is allowed to recover from Z
11. In the three (3) of the following cases payment by the debtor is not recoverable .Which is the exception?
c. Y has the right to bring an action against Z
a. The obligation was not yet due and demandable but debtor believed it was already due and demandable
d. X is not obliged to give Y an equivalent value of the car
b.The payment is only for interest and credited to the proper period
c. The advance payment were made by both parties reciprocally
4. XYZ are solidarily liable to A for P30, 000 which matures on July 1, 2001.On May 1, 2001, X paid A for the whole
d. The debt was aware of the period
amount of debt. If on December 1, 2001, X will be reimbursed by Y, the latter will liable for:
a. P10, 000 with the interest from July 1, 2001 to December 1, 2001
12. C is the creditor of D in the amount of P50, 000. G is the guarantor of D. D paid C partially with P 20,000. A not
b. P10, 000 without interest
knowing
c. P10, 000 with interest from May 1, 2001 to July 1, 2001
The partial payment of D and against the will of D, paid C the amount of P50, 000 .What is the effect of this payment
d. P10, 000 with interest from May 1, 2001 to December 1, 2001
in
the obligation?
5. A, B and C owe solidarily creditors X and Y P30, 000.X remitted the entire obligation in favor of A. The effect is:
a. The obligation is extinguished. A cannot recover any amount from D, But A can demand reimbursement from G
a. The obligation is not extinguished until a collect from B and C
the
b. The obligation is not extinguished until Y is paid by X his share of the credit
amount of P50, 000
b. The obligation is extinguished. A can demand P30, 000 from D because this amount benefited D or A having been
c. A cannot recover from B and C because remission in his favor extend to the benefit of B and C
subrogated into the rights of C, can proceed against G.
d. a can recover from B and C their respective share of the debt
c. The obligation is not extinguished. A’s payment being against the will D does not extinguish the obligation
d. The obligation is extinguished. A can demand P30, 000 from D, but if D cannot pay, A cannot ordinarily proceed
6. When A voluntarily takes charge of the neglected business of B without the latter’s authority where reimbursement
against guarantor G because A is not entitled to subrogation
must be made for necessary and useful expense, there is a:
a. Quasi delict c. Negotiorum Gestio
13. This is payment in kind:
b. Quasi Contract d. Solutio Indebiti
a. Consignation c. Dation in payment
b. Payment by cession d. Application for payment
7. When the debtor binds himself to pay when his means will permit him to do so, the obligation is:
a. Conditional c.Simple
14. A, B, C and D are joint creditors of E and F, solidary debtors in the amount of P40, 000.00.How much can A, B and
b. Pure d.With a period
C collects from E?
a. A, B, and C could collect P20, 000.00 from E
8. X and Y are solidary debtors of A, B, C and D, joint creditors to the amount of 8, 0000.How much can A collect from X?
b. A, B, and C could collect P30, 000.00 from E
a. A could recover 8,000 from X. A, in turn has to give B, C and D 2,000 each
c. A, B, and C could collect all the P40, 000.00 from E
b. A could recover 4,000 only from X.
d. A, B, and C could collect P20, 000.00 from E and P10, 000 from F.
c. A could recover 2,000 only from X.
15.A obliged himself to pay X 10,000 in 30 days plus a penalty of 20,000 if he fails to pay the obligation in due time.
d. A could recover 8,000 from X. A, in turn does not have to give B, C and D 2,000 each
A failed to pay the obligation in 30 days. X can demand from A.
a. The principal of P100, 000 plus P20, 000 penalty
9. A owes B 150,000 due on August 31, 2000. A executed a mortgage in favor of B on A’s building to guaranty the
b. The principal of P100, 000 plus P20, 000 penalty, plus legal interest
obligation.
On August 10, 2000, the mortgaged building was totally lost due to an earthquake .On August 12, 2000, B demanded
c. The principal of P100, 000 plus P20, 000 plus legal interest
payment from A. Is B’s demand valid?
d. The principal of P100, 000 plus P20, 000 penalty, plus legal interest, plus damages
a. No. The obligation is one with define period, thus the creditor cannot demand fulfillment of the obligation before it
is due.
16. A signs a promissory note and binds himself to pay X P100, 000 plus 15% per annum interest on June 30,2000.
b. No. The mortgage was extinguished because the object of the contract was lost through a fortuitous event.
 a. Before June 30, 2000, X can demand payment 25. A executes a promissory note in favor of B who subsequently indorsed it in favor of A. The obligation to pay the
b. If on June 30, 2000 A is paying X the latter refuse the payment promissory
is thereby extinguished because there is:
c. A compel creditor X to accept payment before June 30, 2000 a. confusion or merger c. remission
d. Because the period is for the benefit of the debtor and creditor, X can refuse any tendered payment before June 30, b. novation d. compensation
2000
26. The distinction between conventional subrogation and assignment is that in conventional subrogation:
17. A owes X P50, 000 payable on or before June 30, 2000. S who is not a party to the contract and without consent a. it is a mere cession of right
and against the will of A paid X the P50, 000 on April 1, 2000 when the prevailing rate of interest was 12% per b. an obligation is extinguished and another appears
annum c. the same obligation, without being extinguished, is transferred to another
a. S can ask reimbursement from A in the amount of P50, 000 plus 12% interest from April 1, to June 30, 2000. d. the debtors consent is not necessary
b. S cans reimbursement from A in the amount of P50, 000
c. S cannot ask reimbursement from A because the payment by S without the consent and against the will of A. 27. A promissory note A and dated March 15, 2000 is worried as follows: “I promise to pay B the sum of Fifty Thousand
d. S can ask refund from X because the payment by S was against the will of A. Pesos
(P50, 000) provided that if she should fall I the October, 2000 CPA Examination, she shall return to me the said
18. When the obligation is extinguished because of the passage of time, this is: amount”.
a. fulfillment of resolutory c. prescription The above note gives rise to an obligation with:
b. arrival of resolutory period d. rescission a. suspensive condition c. resolutory condition
b. casual condition d. answer mot given
19. When the debtor abandons or transfers all his properties to his creditors so that the creditors may sell the properties
and out of the net proceeds the creditors recover their claims, this is called
a. dacion en pago c. payment by cession 28. A and B to deliver a particular car valued at P100,000 to C on or before September 15,2000 . September 15, 2000
b. tender payment and consignation d. remission came and
upon demand by c from delivery from A and B, A was willing to deliver but B refused to deliver. In this case at bar:
a. An action for specific performance will lie against both A and B.
20. When the period is “on or before a date”, the debtor has the benefit of the period. This benefit is lost and the b. Both A and B shall be liable for 50,000 each with damages
obligation c. B shall be liable for P50, 000 without damages and A shall be liable for P50, 000 damages
becomes demandable when d. C can demand delivery of the car from A or B
a. the debtor attempts to ascond
b. after contracting the obligation, the creditor suspects the debtor of becoming insolvent 29. A,B and C owed a solidum P15,000 to D as evidenced by a promissory note due on September 30,1990. The note
prescribed on October 1, 2000. On October 10, 2000 A paid D. In this case, A is:
c. the guarantee given by the debtor is not acceptable to the creditor a. entitled to collect P5, 000.00 each from B and C
d. demand by creditor could be useless b. not entitled to reimbursement from his co-debtors for the shares of the latter
c. entitled to recover from D
21. Unless the law or stipulation of the parties requires another standard care, the obligation to give a thing carries with d. answer not given
the
Obligation to take care with: 30. This a promissory note “I promise to pay A, B and C the sum of P18, 000.”(Signed) D, E and F
a. Extra-ordinary diligence c. diligence of a good father of a family a.F is obliged to pay C P6,000.00 c. F is obliged to pay C P12,000.00
b.degree of care agreed upon by the party’s d. diligence of a good family of a father b.F is obliged to pay C P2, 000.00 d. F is obliged to pay C P18, 000.00

22. A entered into a contract with B by which A promised to deliver at price stipulated in the contract. Such delivery is 31. A and B are solidary debtors of C,D,E and F joint creditors in the amount of 20,000.How much can C collect from
to made on February 14, 2001 with penalty in case of default. In this case, no further demand by B on A is necessary A?
to a. C could collect P2, 500.00 from A
consider A in delay because: b. C could collect from A P10, 000.00.C is then obliged to give P2, 500 each to D, E and F
a. time is of the essence of the contract c. the demand would unless
b.The obligation is expressly so provides d. answer not given c. C could collect P5, 000 from A
d. C could collect the whole P20, 000 from A but will in turn give P5, 000 each to D, E and F.
23. One of the following shall produced effect of payment of debts
a. delivery of check c. delivery of a promissory note 32. A owes B who has two (2) legitimate children, 50,000 payable on December 31, 2000
b.tender of Central Bank notes d. dacion en pago
a. If A dies before December 31, 2000, B cannot collect from A the heirs of A
24. If the creditor to who tender of payment has been made refuses without just cause to accept it, debtor shall be b. If A dies before December 31, 2000, B cannot collect from A the heirs of A
released from responsibility by:
a. assignment of property c. adjudication or pacion en pago c. If dies, his two (2) legitimate children cannot recover from A his obligation
b. consignation of the thing or sum due d. condonation d. If both A and B die, the heirs of B can collect from heirs of A.
 41. X has been missing for sometime leaving for no one to manage his properties A and B jointly took charge of the
33. If the obligor binds himself to perform his obligation as soon as “he shall have obtained the loan “from a certain bank management thereof. However, due to the fault of A, the properties of X were damaged .The liability therefore to X
this obligation is: for
a. with a term c. suspensive damages shall be:
b. conditional d. resolutory a. only A shall be liable
b. both shall be jointly liable
34. If to refers to a joint obligation: c. both shall be solidarily liable
a. One in which debtor is liable for the entire of obligation, and each creditor is entitled to demand the whole d. they are not liable since at fault for having abandoned his properties
obligation
b.one in which either one of the parties is indispensible and the other is not necessary 42. X by mistake delivered to A and Ba sum of money which should have been delivered to C and D. X now demands the
c. one in which of the obligation is resolutory condition of the other, the non-fulfillment of which entitles the other return of the same from A and B. The liability of the latter for the sum of money to which they are not entitled shall
party be:
to rescind the contract a. A and B shall be liable solidarily
d. one which each of debtors is liable only for a proportionate part of the debt and each creditor are entitled only for a b. A and B shall be liable jointly
proportionate part of the credit. c. They are not liable for having received the money in good faith
d. X has not the right to recover as he was negligent in the delivery of the money
35. It presupposes not that the obligor is bale, ready and willing but more so, in the act of performing his obligation
a. promissory note c. bill of exchange 43. A owes B a sum of money evidenced by promissory note which has prescribed without the knowledge of A, paid B
b. tender of payment d. obligation to sell his debt. Later A reimbursed X for the payment of the latter to B although he has no obligation to do so.
After payment A now wants to recover hi payment to X on the ground that he was not obliged to reimburse him.
36. Which of the following is not considered as quasi-contract? Which of the following is not correct?
a. Solutio Indebiti a. A can recover his reimbursement to X to prevent unjust enrichment on X’s part at the expense of A.
b. when the third person, without knowledge of the debtor, pays the debt b. A cannot recover because he has civil obligation to reimburse X for the latter paid his debt to B

c. negotiorum gestio c. A cannot recover because he partakes of a natural obligation

d. reimbursement due the person who saved property during fire or storm without the knowledge of the owner d. A cannot recover since there was reimbursement by mistake

37. D1, D2 and D3 oblige themselves solidarily to give Ca specific car valued P12, 000.On due date demanded delivery 44. In which of the following instances does legal subrogation not apply?
but the debtors failed to deliver .The next day, while D1 still in possession of the car, it got lost due to fortuitous event. a. when a creditor pays another creditor who is preferred, even without the debtor’s knowledge
The b. when the third person, not interested in the obligation, pays with the express or tacit approval of the debtor
right of C is
a. None, obligation is totally extinguished c. when a third person pays the creditor without knowledge or against the will of the debtor and yet entitled to
b.proceed against any of the debtors for the value and damages beneficial
c. proceed against D1 only, because he is the one in possession at the time it was lost reimbursement
d. when, even without knowledge of the debtor, a person interested in the fulfillment of the obligation pays, without
38. In tender and consignation: if after consignation is made, the creditor allow the debtor to withdraw the thing prejudice to the effects of the confusion as to the latter’s share.
deposited
in court, which of the following is incorrect? 45. A bought biscuits from a grocery store and was hospitalized due in food poisoning as a result of toxic substance
a.co-debtors, guarantors and securities are released from the obligation unless they consented contained in the biscuits sold to retailers by the Ace Foods Inc. A is now suing the said producer corporation for
b. the obligation remain to subsist damages
c. the obligation is extinguished Decide:
d. none of the above a. A has no right to claim damages from the producer because there was no contract between them.
b. Ace Foods Inc is not liable to A because the latter was negligent in eating the biscuit despite the presence of
39. A, B and C are joint debtors of joint creditors W, X, Y and Z in the amount of P300, 000. How much can W and X harmful
collect from B? substance therein.
a. P 75,000 c. P 150,000 c. A must claim damages from the grocery store and not from the producer since the grocery was the one which sold
b. P 100,000 d. P 50,000 the
poisoned food to A.
40. D owes C 10,000 payable on December 25. Later, D forced C to sign a promissory note for 10,000 payable on d. Ace Food Inc is liable for damages due to quasi-delict to its negligence in the preparation of the biscuits thus
December 25. causing
If all the other requisites of compensation are present, are both debts extinguished? to A.
a. Yes, under the legal compensation
b.No, B’s consent was obtained by force 46. Acceptance of commercial document is equivalent to payment:
c. yes, with approval of the court a. The check has been received as payment
d. not given b.The check has become valueless because of the creditors fault
c. The check is a managers or cashier’s check
 d. The promissory note is used as payment a. No because the guarantor is liable to the creditor B and not to debtor A.
b.Yes because the guarantor has now become the creditor;
47. The debtor shall lose every right to make use of the period except: c.No because it is the obligation of the guarantor pays the creditor for the benefit of the debtor;
a. When after the obligations has been contracted he becomes insolvent, unless he gives a guaranty or security for the d. Yes because the guarantee has been extinguished by confusion or merge of rights
debt
b.When does not furnish a guaranty or security for the debt 5. A owes B P1M. B owes A P.5M. B assigned credit to C with the consent of a who reserved his right to compensation.
c. When the debtor attempts to ascond a. A claim compensation against C as to what b owes him.
d. When he violates any undertaking consideration of which the creditor agreed to the period. b.A cannot claim compensation against C because he consented to the assignment
c. A cannot claim compensation against C without his consent
48. When the debtor binds himself to pay when his means permit him to do so is one: d. A cannot claim compensation against C even without the reservation
a. With a condition is dependent upon the debtors will
b.With resolutory period upon the debtors will 6. A owes B P1M due on Jan.21, 2001. B owes a P.2M due on Jan.20, 2001 and P.3M due on March 2, 2001. B assigned
c. With period dependent upon the debtors will the
d. With the condition to be fixed by court credit to Con Feb.2, 2001 without the knowledge of A who obtained knowledge of the assignment of credit on Feb. 4,
2001
49. D owes C P1M. G is the guarantor. A stranger S paid C the debt D without the knowledge of the latter. In this a. A cannot claim compensation against C because of his knowledge of the assignment;
case: b. A can claim compensation up to P.2M only;
a. If D fails to pay S, the latter can compel G to pay him; c.A can claim compensation of all the debts of B to him;
b. If G pays S, the former can demand reimbursement from D; d. Legal compensation cannot take place.
c. S cannot compel G to pay him;
d. D has no obligation to reimburse S because he paid without the consent of D. 7. A owes B P1M on Feb. 3, 2001. B owes A a lancer GSR worth P1M due on Feb.4, 2001
a. On Feb. 3, 2001, A cannot claim compensation because one of the debts is not yet due;
50. D owes C P1M. A proposed to B that C will pay A’s debt and that he will be released from all liabilities not him. B and b. On Feb. 4, 2001, A cannot claim because both debts are now due;
C agreed to the proposal. Later when B tried to collect from C, he found out that he was insolvent c. The parties can agree on compensation only Feb.4, 2001 when both debts are due;
a. A is no longer liable to B because of the substitution of C in his place if he had no knowledge of the insolvency d. Legal compensation cannot take place
despite it being of public knowledge;
b. A is no longer liable to B even if he had knowledge of C’s insolvency despite it being of public knowledge
c. A still liable to b because he was the one who proposed to B that C shall substitute to him as debtor 8. A owes B P1M with 12% interest. As agreed upon among parties, the principal amount shall be paid to B but the
d. A is longer liable to b despite the insolvency of C unless said was of the public knowledge or known to him when he interest
delegated the debt. shall be given to C who accepted the stipulation in his favor. Later A and B agreed that instead of cash it shall be
parcel of
land worth P1M
QUIZ ON OBLIGATION-PART II a. The novation of the obligation shall also extinguish the accessory obligation to pay the interest to c.
b.In the absence of the consent of C to the novation, he is still entitled to the interest;
c. With or without the consent of C, the obligation to give the interest to him is also extinguished because of the
1. In three of the following cases, compensation cannot be claimed by the debtor except: novation of
a. By the bailee in commodatum; principal obligation;
b. By the depositor in contractor deposit; d. Since the parcel of land could possibly earn interest, the obligation to pay interest is extinguished
c. By the person obliged to give support due by gratuitous title;
d.By the debtor in an obligation arising from a penal offense 9. A owes B a sum of money and secured by a pledge on his car. Later, the car is found to be in the possession of A.
a. It is presumed that the debt of A has been condoned;
2. Which of the following is not a requisite for legal compensation? b. It is presumed both the debt and pledge has been remitted;
a. Both debts are due; c.It is presumed that debt is extinguished;
b. Both are liquidated and demandable; d. It is presumed that the pledge is condoned
c. By the person obliged to give support due by gratuitous title;
d. By the debtor in obligation arising from a penal defense 10. In which of the following is consignation alone without prior tender of payment not valid to extinguish the obligation?
a. When two or more persons claim the same right to collect;
3. A owes B P1M guaranteed by X. In turn, B owes A P.5M. A failed to pay B and the latter is now collecting from X. b. When the title of the obligation has been lost;
a. X is liable to B for P1M because as guarantor he is liable for the debt of the debtor in case of non-payment thereof; C.When with just a cause the creditor refuses to issue a receipt;
b. X shall be liable to B for P.5M only if the latter agrees to the compensation; d. When is incapacitated to receive the payment at the time it is due.
c. X cannot claim compensation against B because the latter owes him nothing;
d. X can set up compensation as regards what B owes A 11. Which of the following is not a requisite of payment by cession? a. One debtor and two or more creditors
b. The debtor is insolvent
4. A owes B P1M guaranteed by C. B assigns his credit X. X assigns his credit to Y. Y assigns his credit to C, the c. The creditors become owners of the properties assigned to them
guarantor, d. The creditors are authorized to sell the properties of the debtor
Does A still have to pay C?
12. Which of the following is not a requisite of Dation in payment? a. The creditor c. Both creditor and debtor
a. One debtor and two or more creditors b. The debtor d. Third person
b. The debtor is insolvent the right of choice is with the debtor, unless expressly given to the creditor.
c. The creditors become owners of the property used as payment;
d. Acceptance of the creditor is not necessary 22. In facultative obligation the right choice belongs to:
a. The creditor c. Both creditor and debtor
13. D obtained a loan from C payable on or before December 31, 2002. Which of the following statements is correct? b. The debtor d. Third person
a. Can only pay the obligation on December 31,2002 e. None of the above
b. Can demand payment from D on before December 31, 2002 23. The sources for liability for damages are the following except:
c. Can demand payment from D even before December 31,2002 a. Fraud b. Negligence c. Delay d. Quasi-delict
d. D can pay on before December 31,2002
24. When the fulfillment of the condition depends upon the sole will the debtor, the conditional obligation shall be:
14. The obligation of Pedro in favor Juan amounts to Php 30,000.00 payable on May 5,2002. On April 15, 2002 Ciriaco a. Voidable b. Unenforceable c. Valid d. Void
and potestative on the part of the debtor: if suspensive—VOID; if resolutory—VALID. @_@???!!
Pedro agreed that Ciriaco will pay the obligation of Pedro. Juan gave his consent to the said agreement .The change of
the 25. Z obtained a loan from X on the amount of 10,000.00. Z promised to pay the said loan of 10,000.00 to X as soon as
debtor in this called: possible. Two year had lapsed but the loan is still unpaid .The remedy available to X is:
a. substitution b. expromission c. subrogation d. delegacio a. To file an action against Arturo for collection of debt
b. To demand payment for damages
15. X issued a promissory note to A amounting to Php 10,000.00. A purchased a computer from B and he indorsed the c. To attach the property of Z;
note to B. B indorsed the promissory note to C in payment of his loan .C indorsed the said promissory note to X d. To ask (petition) the court to fix the period
as payment for the repair of his car .The obligation of X in this case is extinguished by: 26. A, B and C are solidarily creditors of D in the amount of 15,000.00. C demanded payment from D. After the demand
a. novation c. confusion or merger of rights for
b. compensation or merger of rights d. condonation or remission of rights payment by C, D in order to extinguish the entire obligation may pay to:
a. A only b. B only c. C only d. To either A or B
16. C bought only the car of D on February 15, 2002 and D agreed to deliver it to C on April 30,2002. They did not agree
on the place of delivery .Where is the place of delivery?
a. domicile of the debtor c. where is the car on April 30,2002 27. No person shall hold responsible by reason of fortuitous event except:
b. where is the car on February 15,2002 d. domicile of the creditor a. When time is the essence of the contract;
b. When demand would be useless
17. D has an obligation to deliver his dog to C on October 16, 2001. On October 10, 2001, the said dog gave birth to seven c. When the nature of the obligation requires the assumption for risk
puppies. On October 16, 2001, D failed to deliver the said dog .Who shall be the owner of the dog on October 16, 2001? d When the obligation is purely personal in nature
a. C because that it the agreed date of delivery
b.D because the dog is still in his possession; 28. Dela Cruz obliged himself to deliver a determinate horse to Mary Jane on November 5.Whewn the date of the delivery
c.C because he has the right to demand its delivery of
d. D because the delivery of the dog is dependent upon his will the horse arrived, the horse has already an offspring. Dela Cruz is obliged to deliver the:
a. Horse only
18. When the obligor binds himself to pay when his means permit him to do so, the obligation is: b. The horses as well as the offspring
a. conditional b. facultative c. pure d. with a period c. Dela Cruz can refuse to deliver both the horse and offspring
d. Dela Cruz may ask Mary Ann to pay the offspring
19.A obtained a loan from B in the amount of Php 10,000.00 payable on December 31,2002 plus 10% interest. A won in
the 29. When the obligor voluntarily prevents the happening of the condition it is deemed that the condition is:
lotto and on March 30, 2002 he offered to pay his loan to B plus Php1,000.00 as interest but B refused to accept his a. Constructively fulfilled c. constructively demandable
payment b. constructively extinguished d. constructively nullified
.Which of the following statement is correct?
a. A can file a consignation in court because B refused to accept his payment without justifiable cause. 30. A bound himself to deliver a determinate horse to B on January 14, 2002 .On January 16, 2002 the horse was struck
b. B can compelled to accept the payment if the interest will be increased and
c. B must accept the payment because it is complete killed by lightning
d. A cannot compel to B to accept his payment because the loan is not yet due. a. A is liable for the loss of horse because he was in delay
b. A has the obligation to replace the horse
20. D has the obligation to give a two-year black male dog to C on April 30,2002.On April 2,2002, all of the dogs of D c. A’s obligation is extinguished
were hit by lightning and they all died. Therefore: d. B may claim damages from A
a. The obligation of D to C is extinguished c. C can only demand for damages from D
b. D must still gave the two year old black male dog to C. d. C can demand for the dog plus damages 31. Payment by cession as distinguished from the Dation in payment
a. The debtor is not necessarily in a state of financial difficulty
21. In alternative obligation, the right of choice belongs to: b. The effect is to release the debtor for the net proceeds of the things cede or assigned
 c. The property is alienated by the debtor to the creditor in satisfaction of a debt in money
d. What is delivered by the debtor is merely a thing to be considered as the equivalent of the performance of the
obligation
40. Culpa aquiliana as distinguished from culpa contractual
32. A owes B 20,000 which become due and payable last June 23, 2001. On that date A offered B 10,000 the only money a. Proof of due negligence in the selection and supervision of the employees is not as a defense
he then had but B refused to accept the payment. A therefore met C, B’s 23 year old son, to whom he gave the 10,000 b. Proof of the contract and of its breach is sufficient prima facie to warranty recovery
with the request that he turn the money to B. The money was stolen while in the C’s possession. How much may B c. The negligence of the defendant is merely an incident in the performance of the obligation
still recover from A? d. The source of liability is the defendant’s negligent acts or omission itself
a. 20,000 b. 10,000 c. 15,000 d. 0.00
41. This is the kind of diligence that the obligor must observe in the performance of his obligation to give something:
33. If a third person pays an obligation. What are the rights which are available to him if he pays the obligation with the a. Diligence of a good father of a family
knowledge and consent of the debtor? b. Extraordinary diligence of a good father of a family
First answer – He can recover from the debtor the entire amount, which he has paid c. Diligence of a good father of a family
Second answer –He is subrogated to all the rights of the debtor ? d. Diligence of a good father of a family even if the law or the stipulation requires another standard of care
a. Both answers are correct c. Only the first answer is correct
b. Both answers are wrong d. Only the second answer is correct 42. D owes C P1M. X without the knowledge or against the will of D paid C P2M. Can X get reimbursement from D?
a. P2M by the way of reimbursement from D to prevent unjust enrichment on the part of D at the expense of X
34. A, B and C executed a promissory note binding themselves to pay 9,000.00 to X, Y and Z. The note is now due b. P1M only for that is the extent of the benefit of D.
and demandable. Can the creditors proceed against A alone for the payment of entire debt? c. No reimbursement because the payment was not proper being without the knowledge or against the will of D.
a. No each creditor can collect 3,000 from A d. P1M plus interest from the time of payment until reimbursement
b. Yes either X, Y or Z can collect 9,000 from A
c. No each creditor can collect only 1,000 from A 43. Mel sold to Jay her car and promise to deliver the car to Jay on January 30, 2004 .On January 15, 2004, Mel sold the
d. Yes the promissory note is silent with respect to the rights of the creditor s, the obligation is presumed to solidarily same
car to Patrick and Patrick immediately possessed the car. As of February 5, 2004, Jay has not received the car from
35. Indivisibility as distinguished from solidarity Mel.
a. Plurality of subject is invisible a. Jay can cancel the contract of sale between Mel and Patrick because the contract of the sale between him and Mel
b. When the obligation is converted into one of indemnity for damages because of breach, the character of the was
obligation perfected first;
remains b. Mel cannot considered in delay because there was no demand yet from Jay
c. Refers to the legal tie or vinculum c. Mel is already in delay, even if there was no demand from Jay and she shall be liable for damages
d. Refers to the prestation which constitute the object of obligation d. The sale is rescissible because of damage caused to Jay

36. A source of obligation not arising from law 44. S sold his car with Plate No. XYZ 123 to B and B paid 150,000 to S. They agreed that the said car will be delivered by
a. negotiorum gestic b. solutio indebiti c. culpa aquiliana d. contract S to
B on December 14, 2002 .Which of the following statements is true based on the facts given?
37. The loss or deterioration of the thing intended as a substitute through the negligence of the obligor does not render a. B is considered as the owner of the car on December 14, 2002
him b. S may deliver the car to B on December 12.2002 and compel to B to accept it.
liable c. B may demand for the delivery of the car on December 13, 2002
A person alternatively bound by different prestation shall completely perform one of them d. S will be delay if he will not be able to deliver the car on the maturity date
a. true, true b. true, false c. false , true d. false ,false
45. Which of the following statements is true and correct?
38. There being no express stipulation and if the under taking is to deliver a determinate thing the payment shall be a. Where an obligation is secured by a pledge or mortgage and it is not paid when due, the pledge or mortgagee may
made appropriate the thing given by the way of pledge and mortgage
a. At the domicile of the debtor b. In both pledge and mortgage, the creditor is entitled to deficiency judgment
b. at the domicile of the creditor c. Pledge and mortgage are accessory contracts because they cannot exist by themselves
c. whatever that thing might be at the moment the obligation was constituted d. Unless otherwise agreed upon by the parties, the sale of the mortgaged property extinguishes in full
d. whenever the thing might be at the moment the obligation is to be fulfilled the
mortgage constituted thereon.
39. Demands is not needed to put the debtor in fault, except
a. When the demand would be useless
b. When the parties so stipulate (a) pactum commissorium (prohibited by law)
c. When time is the essence (b) in a pledge, the creditor does not get the deficiency
d. When the fixing of the time is the controlling motive for the establishment of the contract (d) if there’s still deficiency even after the property mortgaged had been foreclosed, debtor-
mortgagor is still liable for the deficiency.
46. A, B and C borrowed P3M from D, E and F evidenced by a promissory note worded as follows to wit.”I promise to pay a. Negotiorum gestio c. Quasi-contract
D, E b. Solutio indebiti d. Contract
and F P3M. (Sgd) A, B and C”. How much can D collect from A?
a. P3M b. P.5M c. P1.5M d. P1M 4. It is a wrong committed without any pre-existing relations between the parties
a. Natural obligation c. Quasi-contract
47. A, B and C bound themselves to deliver X a specific car worth P3M. Due to the fault of A the car was lost. In this case: b. Quasi-delict d. Culpa contractual
a. X can claim damages from any one of the three proportionate part of liability because the obligation is indivisible
b. X can claim only from A the whole amount of damages other than value of the car 5. Unless the law or stipulation of the parties requires another standard of care, every person obliged to give
c. Since solidarily liabilities for damages, X can claim the same from any of the three something is also obliged to take care it with
d. D is only liable for damages although B and C are liable for their respective shares in the obligation a. Extraordinary diligence
b. Diligence of a father of a good family
48. L, M and N are the solidarily debtors of Y for the amount of 300,000 payable as follows: c. Diligence of a father of a good family
L- 50,000 payable when he passed the CPA Boards Exams d. Good diligence of a father of a family
M- 100,000 payable on February 14, 2004
N- 150,000 payable upon completion of his construction project 6. The creditor has a right that is enforceable against a definite passive subject. The right is known
If L will pass the CPA Boards Exams, what shall be the right of Y? a. Personal right c. Determinate thing
a. demand 50,000 from L only c. demand 300,000 from L,M and N b. Real right d. Real thing
b. demand 50,000 from L,M and N d. demand 300,000 from L only
7. It is a thing that is particularly designated or physically segregated from all others of the same class.
49. A obliged himself to deliver the cans of powdered milk B from Pangasinan to Manila. While his truck was traveling on a. Generic thing c. Determinate thing
the b. Indeterminate thing d. Real thing
North expressway, it was hi-jacked by the band of robbers who also took the cans of milk belonging to B. Is liable for
the 8. One of the following is a determinate thing
loss of goods? a. A BMW with the license plate no. HNT 888 c. A Honda Civic Sir car
a. No because they were generic things and they cannot be lost b. One of the vehicles d. A gold Rolex watch
b. Yes because he was in possession of the same at the time of the loss and therefore presumed at fault.
c. Yes because there was no stipulation exempting him from loss in case of fortuitous event 9. Demand must be made for delay to exist in one of the following case.
d. No because the loss was due to fortuitous event a. When it was stipulated by the parties that demand need not made
b. When the law provides that demand need not be made
50. A brought her diamond ring to a jewelry shop for cleaning and the latter undertook to return the ring by February c. When the obligation is silent on the necessity of demand
1,2000. d. When the time is of the essence of the contract
When the said date arrived, the jewelry shop informed A that the job was not yet finished and they asked A to return
five days after. On February 6, 2000 A went to the shop to claim the ring but she was informed that the same was 10. This refers to delay on the part of the creditor
stolen a. Mora solvendi ex re c. Mora solvendi ex persona
by a thief the night before. Decide b. Compensation morae d. Mora accipiendi
a. The jewelry shop is not liable for the loss because it took place due to the force majeure
b. The jewelry shop is not liable if it was so stipulated between the parties 11. There shall be no liability for the loss due to fortuitous event in one of the following case.
c. The jewelry shop is not liable for the loss despite the force majeure because of delay a. When the debtor delays
d. The jewelry shop is not liable for the loss because there was no delay on its part b. When the parties stipulated that there shall be liability even in case of loss due to fortuitous event

c. When the nature of the obligation requires the assumption of risk

QUIZ ON OBLIGATIONS – PART III d. When there was no stipulation as to liability of the debtor in case of loss due to fortuitous event

MULTIPLE CHOICE. Select the best answer by writing the letter of your choice 12. The following are the remedies of the creditor to pursue his claims against the debtor except:
a. Pursue the property owned
1. The following are the requisites of an obligation, except b. Exercise all the rights and bring all the actions of the debtor for the said purpose (accion subrogatoria)
a. Passive subject, debtor, debtor or obligor
b. Active subject, creditor, or obligee c. Impugn the acts which the debtor may have done to be defraud his creditor. (accion pauliana)
c. Efficient cause d. Compel the debtor to perform the service in obligations to do ???!!
d. Presentation
13. D borrowed 50,000.00 from C. C dies before he has collected the debt leaving S, his soon as heir.
2. Obligations arise from the following except: Which of the following statements are correct?
a. Contracts c. Law a. S can collect from D although D and C did not agree that the right to the debt will pass on to the heirs of C
b. Quasi-contracts d. Negligence b. S cannot collect because the credit right is personal to C.
c. S can collect only if D and C agreed that the right to the debt will pass on the heirs of C
3 It is a voluntary administration of the property of another without his consent d. S cannot because the law prohibits the transmission of the credit right
 d. C can only choose to have delivery of the bracelet or the price of the ring which was the last item that was lost
14. D is obliged to give C a specific car if C passes the CPA Examination. This obligation is an example of: plus damages
a. A pure obligation
b. An obligation with a suspensive condition 23. D obliged to give C specific ring. The parties agreed that D may give a specific bracelet as substitute. Which of the
c. An obligation with a resolutory condition following statements is true?
d. An obligation with a period a. If the ring is lost through a fortuitous event before substitution , the obligation is extinguished
b. If the bracelet is lost through a fortuitous event before substitution , the obligation is extinguished
16. One of the following is a void obligation?
a. D is obliged to give C 5,000.00 if C does not go to the moon c. If the ring is lost through a fortuitous event even after before substitution, the obligation is extinguished
b. D is obliged to give C 5,000.00 if D goes to Baguio d. a. If the ring is lost through the debtors fault after substitution, the debtor shall pay the damages
c. D is obliged to give C 5,000.00 if C goes to Baguio
d. D is obliged to give C 5,000.00 if D wins the first prize in the sweepstakes on a ticket that he had already 24. A, B, C and D are obliged to give V, W,X,Y and Z 20,000.00
purchased. a. V may collect from B 20,000.00
Potestative. Depends upon the sole will of the debtor. Void. b. V may collect from B 5,000.00
c. V may collect from B 1,000.00
17. D is obliged to give C 10,000.00 if X dies. This example of: d. V may collect from B 4,000.00
a. An obligation with a suspensive condition
b. An obligation with a resolutory condition 25. A ,B,C and D joints debtors ,are obliged to give V,W,X,Y and Z solidary creditors 20,000.00
c. An obligation with a period a. V may collect from B 20,000.00
d. A pure obligation b. V may collect from B 4,000.00
c. V may collect from B 5,000.00
18. When debtor binds himself to pay when his means permit him to do so, the obligation is: d. V may collect from B 1,000.00
a. An obligation with a resolutory condition
b. A pure obligation 26. A ,B,C and D joints debtors ,are obliged to give V,W,X,Y and Z solidary creditors 20,000.00
c. An obligation with a suspensive condition a. V may collect from B 20,000.00 ???!! solidary debtors ada?
d. An obligation with a suspensive period b. V may collect from B 4,000.00
c. V may collect from B 5,000.00
19. Whenever a period is designated in an obligation, the said period shall presumed to have been established d. V may collect from B 1,000.00
for the benefit of:
a. The debtor c. Both the debtor and the creditor 27. A ,B,C and D solidarily debtors ,are obliged to give V,W,X,Y and Z solidary creditors 20,000.00
b. The creditor d. either of the parties a. V may collect from B 20,000.00
b. V may collect from B 4,000.00
20. The debtor shall lose the right to make use of the period in the following cases, c. V may collect from B 5,000.00
a. When he becomes insolvent d. V may collect from B 1,000.00
b. When he violates any undertaking in consideration of which of the creditor agreed to the period
28. A, 25, B,35 and C,17 are solidary debtors of X in the amount 9,000.00
c. When the debtor attempts to abscond a. V may collect from A 9,000.00
d. When he does not furnish any guaranty or security to the creditor b. V may collect from B 6,000.00
c. V may collect from C 9,000.00
failure to furnish the guaranties or securities promised. ??? d. X may collect because the obligation is voidable, C being a minor

21. An obligation ceases to be alternative and becomes a simple obligation in the following cases, 29. The folllowing obligations are divisible, except an:
a. When the debtor has communicated his choice to the creditor a.Obligation to give definite things
b. When the right of choice has been expressly granted to the creditor and his choice has been communicated B.Obligation which has for its object the execution of certain number of days or work
to the debtor c. Obligation which has for its object the accomplishment work by metrical units
c. When among the several prestation that due only one is practicable d. Obligation which by its nature is susceptible of partial performance
d. When several prestation are due to the performance of one is enough to extinguish the obligation
30. In obligations with a penal clause, the creditor as a rule may recover from the debtor in case of breach of the
22. D obliged to give C specific watch, a specific ring, or a specific bracelet .The parties agreed that C will have the right following:
to choose the thing this will be given to him. Before C could make his choice, the watch and the ring are lost through a. The penalty as agreed upon plus damages and interest
D’s fault, successively. What is the right of C? b. The penalty and damages
a. C may choose the delivery to him of the bracelet or the price of the watch or the price of the rings plus damages c. The penalty and interest
b. C cannot choose the price of the watch or the price of the ring because the said objects have already been lost d. The penalty only

c. Can only choose to have the bracelet because anyway, D can still perform his obligation
31. Consider the following statements:
I. The nullity of the principal obligation carries with it the nullity of the penal clause 38.D owes C the following debts:6,000.00 due on June 12: 6,000.00 on June 15: 6,000.00 due on June 18; and 6,000.00 due
II. The nullity of the principal obligation does not carry with it the nullity of penal clause on
III. The nullity of the penal clause carries with it the nullity of the penal clause of the principal obligation 20. All debts are unsecured except the debt due on June 20 which is secured by a pledge of D’S diamond ring to C,By
IV. The nullity of the penal clause carries with it the nullity of the penal clause of the principal obligation agreement , the benefit of the term on the 4 debts was made in favor of D. Assuming that D has 6,000.00 on June 18
and is ready to pay C,which of the following statements is correct?
a. Statements I and III are true a. D may apply his payment of 6,000.00 to any of the debts due on June 12, June 15 and June 18 since they are all
b. Statements I and IV are true due as of June 8
c. Statements I and II are true b. D may apply it only to the debt due on June 20 because it is the most burdensome to him
d. Statements II and IV are true c.D must apply the payment proportionately to the debts due as of June18 at 2,000.00 each
d. D may apply the payment to any of the four debts

32. D borrowed from C 50,000.00.The obligation is secured by a chattel mortgage on D’s Toyota car. Subsequently , D in application of payment, the “more burdensome rule” is NOT applicable.
paid
C 20,000.00 .Unknown to D, T, a third person , pays C 50,000.00 believing that D still owed C such amount. 39. The offer made by the debtor to pay his obligation to his creditor is known as:
a. T can recover 50,000.00 from D.If D cannot, T can foreclose the mortgage on D’s Toyota car a. Consignation
b. T can recover nothing from Dbecause he paid out without knowledge and consent of D b. Tender of the payment
c. T can recover 30,000.00 form D. If D cannot, T can foreclose the mortgage on D’s Toyota car c. Application of payment
d. T can recover 30,000.00 form D.If D cannot ,T can foreclose the mortgage on D’s Toyota car d. Dation of payment

33. The following concerning payment by cession are true except 40. Consignation alone without any tender of payment is sufficient in the following cases, except:
a.The creditors become the owners of these properties of the debtor that were ceded to them a. When the creditor is absent, unknown or does not appear at the place of payment
b. Payment by cession extinguishes the obligations only to the extent covered by the proceeds of the sale of debtor’s b. When the title of the obligation has been lost
properties c. When with just cause the creditor refuses to issue a receipt
c. The debtor must be insolvent d. When two or more persons claim the same right to collect
d. Cession affects all the properties of the debtor except those exempt from execution
41. M owes P 10,000.00.The obligation is evidenced by a promissory note. Subsequently, P indorsed the note to A, A to B
34. D obtained from ABC Bank a loan of 12,000.00 payable at the end of 10 years. Before maturity, an extraordinary B to C, and C back to M. The obligation of M is extinguish by:
inflation supervened causing the value of the debt to fall to 4,000,000.00 on the date of maturity. On due date, D a. Compensation
must pay ABC Bank: b.Confusion
a. 12,000,000.00 c.Condonation
b. 4,000,000.00 d.Consignation
c. 20,000,000.00
d. 16,000,000.00 42. The condonation of the obligation to pay interest also results in the extinguishment of the principal obligation.
a. Condonation of an obligation requires the acceptance of the debtor
35. B borrowed from XYZ Bank 2,000,000.00 payable at the end of 5 years. Before maturity, an extraordinary b. Both are correct statements
inflation supervened causing the value of the debt to rise to 5,000,000.00 on the date of maturity. On due date,B c. Both are incorrect statements
must pay XYZ Bank: d. Only the second statement is corect
a. 2,000,000.00
b. 5,000,000.00 43. One of the following is not requisite of legal compensation
c. 800,000,000.00 a. That each one of the obligors bound principally, and that he is at the same time a principal creditor of the other
d. 20,000,000.00 b. That the two debts be due
c. That both debts be liquidated and demandable
36. The money or currency which the debtor may compel the creditor to accept in payment of a debt, either public or d. That the debts are payable at the same place
private is known as:
a. Negotiable instrument 44. Henry, husband, and Wilma, wife are legally separated. By order of the court which decreed the legal separation,
b. Legal tender Henry
c. Negotiable document of title is obliged to give a monthly support of 10,000.00 to Wilma payable within the first five days of the month. Wilma owes
d. Mercantile document Henry 10,000.00 by way of a business loan. On the other hand, Henry has not yet given Wilma’s support of 10,000.00
for this month. Both debts are already due .Which of the following statements is correct?
37. The transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of performance is a. Both debts are extinguished by legal compensation
known as: b. Wilma may claim compensation but not Henry
a. Payment by cession c. Henry may claim compensation
b. Dation in payment d. Neither may claim compensation
c. Application of payment
d. Consignation
45. D owes C 10,000.00 with G as guarantor. C, on other hand, owes D 8,000.00.Both debt are already due but
D is insolvent .In this case
a. C may collect from G 10,000.00
b. C may collect from B 2,000.00 because the guarantor can set up compensation as regards what the creditor may
owe the principal debtor
c. C may collect nothing from G because D is insolvent
d. C may collect from 8,000.00 from G

46. D owes C 50,000.00. Subsequently, D proposed to C that T will assume his (D’s) debt. C accepted the proposal of D.
This substitution of debtor is known as
a. Expromission
b. Delegacion
c. Tradition
d. Dacion en pago

47. Refers to the facts in No.46. Assume also that on due date, T could not pay because of his insolvency which was
in fact subsisting but was not known to D or of public knowledge at the time that D delegated his debt. In this case
a. C can revive D’s debt because T’s insolvency already existed at the time that D delegated his debt
b. C can revive D’s debt whether or not he (D) was aware of T’s insolvency since he (D) proposed the substitution

c. C cannot hold D liable because his (D’s) obligation was extinguished when he was substituted by T.
d. The novation is void because D did not take steps to determine the solvency of T when he (D) delegated his debt

48. D obliged himself to give 5 grams of shabu to C. Later, the parties agreed that D would instead give to C 5 sacks of
rice. Which of the following statements is correct?
a. The novation is void because the original obligation is void. Hence, C cannot demand the delivery of 5 sacks
of rice from D.
b. The novation is valid because the new obligation is valid. Hence, C cannot demand the delivery of 5 sacks
of rice from D
c. The original obligation although void is validated by the new obligation .Hence; C can demand delivery of 5 sacks of
rice from D
d. The new obligation is only voidable because D had not yet performed the original obligation at the time of the
novation. Accordingly, the new obligation is binding and C may demand the delivery of 5 sacks of rice from D
until the new obligation is annulled by a proper action in court.

49. On July 1, 2006 D obliged himself to give C 50,000.00 if C will marry X on or before December 31, 2006. The
condition of the obligation is a
a. positive condition
b. negative condition
c. potestative condition
d. casual condition

50. Refer to No.49.Which of the following is correct?

a. The obligation of D is demandable if C marries X on or before December 31, 2006
b. The obligation of D is extinguished if it is already January 1, 2007 and has not yet married X
c. The obligation of D is extinguished on December 2, 2006 if X dies on the said date and C has not yet married X

d. The obligation is demandable if C marries X on January 1, 2007