Holy Name University Law I (Obligations & Contracts) MidtermsExam

College of Business & Accountancy Atty. Reagan A. Bolando

Name:__________________________________________ Course & Year ____________________

MULTIPLE CHOICE – Choose the BEST answer and write the corresponding LETTER on the spaces provided.

ALTERNATIVE OBLIGATIONS
______1. An obligation where several prestations are due but the performance of one is sufficient: (ART. 1199)
a. Conjunctive obligation c. Facultative obligation
b. Alternative obligation d. Obligation with a penal clause

______2. Boy will give Kris this car, this ring or this sign pen. Suppose Kris selects the car, is B bound by the choice made? (ART. 1200)
a. Yes, because the right of choice is given to Kris as a general rule.
b. Yes, because the right of choice is always given to Kris, without exception.
c. No, because the right of choice is given to Boy as a general rule.
d. No, because the right of choice is always given to Boy, without exception.

______3. In alternative obligations, the debtor shall have no right to choose those prestations which are:
a. Impossible c. not to object of the obligation
b. illegal d. all of the above

______4. For P50,000, Dennis promised to teach Cherry algebra during the year 2015, or to buy for Cherrie an Apple Mac Air laptop. If in
2015, Cherry goes to Iraq, thus Dennis cannot teach Cherry algebra. Choose: (ART. 1203)
a. The obligation of Dennis is extinguished because Dennis cannot make a choice due to Cherry’s fault.
b. Dennis may rescind his agreement with Cherry with the right to recover damages.
c. Dennis may be compelled to deliver the Apple Mac Air laptop to Cherry.
d. Dennis may be compelled to return the P50,000 he received from Cherry.

______5. Arthur is obliged to give to Benedict a car, a cow, or a carabao. Before Arthur communicated his choice to Benedict, the car was
destroyed because of the fault of Arthur. Choose: (ART. 1204)
a. Arthur is liable for damages to Benedict because of the loss of the car.
b. Arthur may be compelled by Benedict to pay the price of the car.
c. Arthur may be compelled by Benedict to deliver either the cow or carabao.
d. Arthur may deliver the cow or carabao to Benedict without any liability for damages.

______6. In problem No. 5, before Arthur communicated his choice, all of the things got lost because of the fault of Arthur in the following
order: (1) carabao; (2) cow; (3) car. Choose:
a. The obligation of Arthur is extinguished.
b. Benedict can demand the price of any of the things due from Arthur.
c. Benedict can demand the price of the carabao from Arthur.
d. Benedict can demand the price of the car from Arthur.

______7. In problem No. 5. Arthur told Benedict that he (Arthur) will give the cow. Before it could be delivered to Benedict, the cow got hit
by lightning and died. Choose:
a. The obligation of Arthur is extinguished.
b. Arthur can deliver either the car or carabao to Benedict.
c. Benedict may demand from Arthur the price of the cow.
d. Benedict may demand from Arthur the delivery of the car or carabao.

______8. Harry was obliged to give to Ron a toad, an owl or a cat. The right of choice was given to Ron. Before Ron made his choice, the
toad got lost because of the fault of Harry. Choose: (ART. 1205)
a. Ron can demand from Harry the price of the toad.
b. Ron can demand from Harry the delivery of the owl.
c. Ron can demand from Harry the delivery of the cat.
d. All of the above.

______9. Frodo was obliged to give to Sam a specific gold ring, but it was agreed that Frodo could give his car as a substitute. Before it
could be delivered, the ring got lost because of the fault of Frodo. Choose: (ART. 1206)
a. The obligation of Frodo is extinguished.
b. Frodo is now obliged to deliver the car to Sam.
c. Frodo is liable to Sam for damages.
d. Frodo is obliged to give to Sam another gold ring of the same quality.

JOINT AND SOLIDARY OBLIGATIONS/DIVISIBLE OBLIGATIONS

______10. Faith, Punzi and Dave are indebted to Ted, Jade and Joe in the amount of P18,000. How much can Ted demand from Faith?
a. P6,000 c. P18,000
b. P2,000 d. P3,000

______11. In. No. 10, if the obligation is solidary, how much can Ted demand from Faith?
a. P6,000 c. P18,000
b. P2,000 d. P3,000

______12. Charles, Velerie and Roger are jointly obliged to give a specific car worth P1.2M to Leah. Charles became insolvent and the
debtors, therefore, cannot purchase the car to give to Leah. (ART. 1209)
a. Leah can compel the delivery of the car from Velerie and Roger.
Holy Name University Law I (Obligations & Contracts) MidtermsExam
College of Business & Accountancy Atty. Reagan A. Bolando
b. The obligation is converted into a monetary debt and Leah can collect P600,000 from Velerie.
c. The obligation is converted into a monetary debt and Leah can collect P400,000 from Roger.
d. The obligation is extinguished because partial delivery of an indivisible thing like a car is not possible.

______13. On July 1, 2016, Sweetie, Mersha and Rose are solidarily obliged to pay Daisy the amount of P300,000 in the following
manner: (1) Sweetie’s share of P100,000 is immediately demandable; (2) Mersha’s share of P100,000 is due on August 31, 2016; (3)
Rose will pay P100,000 if Daisy passes Law I by the end of the semester on October 31, 2016. As of September 1, 2016, assuming no
payment was made on the debt to Daisy, how much can Daisy demand from Rose? (ART. 1211)
a. P0.00 c. P200,000.00
b. P100,000.00 d. P300,000.00

______14. In problem No. 13, on October 31, 2016, Daisy passed Law I. Assuming no payment was made on the debt to Daisy, how much
can Daisy demand from Sweetie?
a. P0.00 c. P200,000.00
b. P100,000.00 d. P300,000.00

______15. Chris is solidarily indebted to Connie, Pearl, Emily and Gladys in the amount of P1,000,000. Connie condoned the debt of Chris
without the consent of Pearl, Emily and Gladys. Choose: (ART. 1215)
a. Pearl can collect from Chris P250,000. a. Pearl can collect from Connie P250,000.
b. Pearl can collect from Chris P750,000. b. Pearl can collect from Connie P333,333.

______16. Katrina, Alex, and Thelma are jointly and severally indebted to Gracie in the amount of P300,000. Which of the following is
false? (ART. 1219)
a. If Katrina pays Gracie P300,000, the obligation to Gracie is extinguished.
b. If Katrina pays Gracie P300,000, Katrina can ask reimbursement from Alex in the amount of P100,000.
c. If Katrina pays Gracie P300,000, and Gracie later condones the debt of Alex, Katrina can ask reimbursement from Alex in
the amount of P100,000.
d. If Katrina secures the condonation of the whole debt from Gracie before any payment was made, Katrina can ask
reimbursement from Alex in the amount of P100,000.

______17. Faye, Evelyn and Mercy are solidarily indebted to Alma for P3,000,000. When they contracted the debt, Faye was insane. Which
of the following is true? (ART. 1222)
a. Faye can set up her insanity as a complete defense, therefore Alma cannot collect from her.
b. Faye cannot set up her insanity as a defense because the obligation is solidary.
c. Evelyn can set up the insanity of Faye as a complete defense, therefore Alma cannot collect from her (Evelyn).
d. Evelyn cannot set up the insanity of Faye as defense because it is a personal defense available only to Faye.

______18. On January 1, 2000, Chona was indebted to Marg and Cesar for P200,000. Chona’s obligation was solidary. On December 1,
2009, Marg demanded payment from Chona but the latter did not pay. Thereafter Marg filed a collection case against Chona in court. On
May 1, 2010, Cesar demanded payment from Chona payment of her obligation. Choose: (ART. 1212)
a. Cesar can demand from Chona the whole P200,000 because the collection case filed by Marg against Chona prevented the
prescription (expiry) of the debt.
b. Cesar can demand from Chona P100,000 because Cesar’s share in the debt of Chona prescribed on January 1, 2010.
c. Cesar cannot demand payment from Chona because the debt prescribed on January 1, 2010.
d. Cesar cannot demand payment from Chona because she did not file a collection case against Chona before the debt
prescribed on January 1, 2010.

______19. Which of the following obligations is divisible?

a. Obligation to give a specific car c. Obligation to pay a lump sum of P1,000,000
b. Obligation to sing “Wrecking Ball” d. Obligation of an employee to render service to the employer

OBLIGATIONS WITH A PENAL CLAUSE

______20. Which of the following is false regarding penal clauses in obligations?

a. It is a coercive means to obtain from the debtor compliance of the obligation.
b. It is an accessory undertaking to assume greater liability in case of breach of contract.
c. It is generally a substitute for damages in case of breach of contract.
d. None of the above

______21. Cathy is obliged to give to Joy a specific diamond ring. If Cathy fails to do so, she must give P500,000 to Joy. Which of the
following is true? (ART. 1227)
a. Cathy can excuse herself from giving the ring by giving P500,000 to Joy.
b. If Cathy fails to deliver the ring to Joy and the value of the ring was P600,000, Joy can demand P600,000 from Cathy.
c. If Cathy fails to deliver the ring to Joy and the value of the ring was P600,000, Joy can demand only P500,000 from Cathy.
d. If the ring is lost due to a fortuitous event, Joy can demand P500,000 from Cathy.

______22. A. In obligations with a penal clause, the penalty may be reduced if the obligation has been partly or irregularly complied with.
B. In obligations with a penal clause, the penalty may be reduced if it is unconscionable, even if there was no performance of the
principal obligation. (ART. 1229)
a. Statement A is correct. c. Both statements are correct.
b. Statement B is correct. d. Both statements are wrong.

______23. A. Kim is indebted to Trina P1M. If she fails to pay, Kim must deliver 1 kg. of shabu to Trina.
B. Kim obliged himself to steal P1M from the bank and deliver the proceeds to Trina. If Kim fails to do so, Kim must deliver his
sports car to Trina. (ART. 1230)
Holy Name University Law I (Obligations & Contracts) MidtermsExam
College of Business & Accountancy Atty. Reagan A. Bolando
a. Only the first obligation is valid c. Both obligations are valid
b. Only the second obligation is valid d. Both obligations are invalid