BUSINESS LAW Atty. M.5. Bonafe Jr. QUIZ ON OBLIGATION - PART I 1, The distinction between conventional subrogation and assignment is that in conventional subrogation: Jti2eo . 2. it isa mere cession of right Caeziqneror{nly)) ; #% an obligation is extinguished and another appears (submaarton only) . c. the same obligation, without being extinguished, is transfefred to another Geojrment onl) d. the debtor's consent is not necessary. (bom) ¥2. A promissory note signed A and dated March 15, 2000 is worded as follows: “I promise to pay B the sum of Fifty Thousand Pesos (P50,000) provided that if she should fail I the October, 2000 CPA Examination, she shall return to me said amount.” The above note gives rise to an obligation with: a. suspensive condition Z. fesolutory condition (denandeble at onet) b. casual condition d. answer not given 3. A and B promise to deliver a particular car valued at P100,000 to C on or before September 15, 2000. September 15, 2000 came and upon demand by c from delivery from A and B, A was willing to deliver but B refused to deliver, In the case at bar: . An action for specific performance will lie against both A and B. b. Both A and B shail be liable for P50,000 each with damages ¢. B shall be liable for P50,000 without damages and A shall be liable for P50,000 damages. d. Ccan demand delivery of the cay from A or B . A, B and C owed in 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, Ais: Ad. 12ie a, entitled to collect P5,000.00 each from B and C ZF. not entitled to reimbursement from his co-debtors for the shares of the latter ¢. entitled to recover from D. d. answer not given. eos render Sel) Shite 5. This is a promissory note: “I promise to pay A, B the sum of P18,000.” (Signed) D, € and F Z Fis obliged to pay C P6,000.00 (geco?s) ©. Fis obliged to pay C P12,000.00 . Fis obliged to pay C P2,000.00 ‘ 4. Fis obliged to pay C P18,000.00 6. A and B are solidary debtors of C, D, E and F Joint creditors in the A and @ are solidary is rs in the amount of P20,000. Ho much 3. C could collect 2,500.00 from A b. C could collect from A P10,000.00. Cis then obliged to 2 C could collect P5,000 from A (se.0c0 ¢ Senet P00twach tod, Band F, d. C could collect the whole P20,000 from A ut will in turn give P5,000 each to D, E and F. 7. A owes B who has two (2) legitimate children, P50,000 payable Z IEA ies before December 31, 2000, B cannot collect from the | reins ore Pe d. IFA dies before December 31, 2000, B can collect from the heirs af A ¢. IfB dies, his two (2) legitimate children canno! ii it recover fror 4. If both A and B die, the heirs of 8 can collect from the heirs OAS . ooloatons 8. If the obligor binds himself to perform hi from a certain bank this obligation is: a. with a term, © suspensive & conditional a. resolutory is obligation as soon as “he shall have obtained a loan”9. It refers to a joint obligation: 2. one in which each debtor Is liable for the ent demand the whole obligation b. one in which either one of the parties is indispensable and the other ts not necessary . one in which the obligation of one is a resolutory condition of the other, the non-fulfillment of which entitles the other party to rescind the contract. 2 One in which each of the debtors is liable only for 2 proportionate part of the debt and each Creditor is entitled only for a proportionate part of the credit. e obligation, and each creditor is entitled to 10. It presupposes not only that the obligor is able, ready and willing but more so, in the act of performing his obligation. a. promissory note ¢. bill of exchange @ tender of payment Ad. esa d. obligation to sell 11. Which of the following is not considered as quasi-contract? a, Solutio indebiti Camement Jy miodeke' (2% when the third is son, withews 7 of the debtor, pays the debt ‘. negotiorum gestio (uanushor sed mgm ppd ea d. reimbursement due the .person who sdved property during fire or storm without the knowled obhr gua: . cnowiedge of the owner Cobre ga ated 12. D1, D2 and D3 oblige themselves solidarity to give C a specific car valued P12,000. On due date. C demanded delivery but the debtors failed to deiver. The next day, while D1 still in possession of the car, it got lost due to fortuitous event. The right of C is a. none, obligation is totally extinguished: proceed against any of the debtors for the value and damages ‘c. proceed against D1 only, because he is the one in possession at the time it was lost 13. In tender and consignation: if after consignation is made, the creditor allows the debtor to withdraw the thing deposited in court, which of the following is incorrect: a. co-debtors, guarantors and securities are released from the obligation unless they consented b, the obligation remairsto subsist - the obligation is extinguished |. none of the above 14. 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 collectg from B? ade a. P 75,000 c, P150,000 b. P 100,000 A P50,000 a bAeNE (iD wi MLL) #15, D ones C P10,000 payable on December 25. Later, D ford C to sign a promissory note for 10,000 payable on December 25. If ali the other requisites of corn both debts extinguished? a compensation are present, are #. yes, under the legal compensation ’. no, B's consent was obtained by force .G. yes, with approval of the court d. not'given 16. X has been missing for sometime leaving no one to manage charge of the management thereat. However, due (0 the BUI SF Re the ogee tee a Sook damaged. The liability therefore to X for damages shail be: Cregehi 4 a a. only A shall be liable - : negebirwn geste) b. both shall be jointly liable ¢. both shall be solidarily liable d. they are not liable since at fault for having abandoned his properties 17. X by mistake delivered to A and B a sum of money which should have been delivered to C and D. X now demands the return of the same from A and money to which they are not entitled shalt be: B. the liability of the latter for the sum of ‘A and B shall be liable solidarily Céctubo indebif') ‘A and B shall be liable jointly ¢. They are not liable for having received the money in good faith 4. X has not right to recover as he was negligent in the delivery of the money16. A owen 9 sum of money evidenced by a Promiss nowledae of A, paid B his debt. although he has no obligation to do s sory Note which has prescribed. X, without the Later A reimbursed X for the payment of the latter to B anthous 0. After payment, A now wants to recover his payment to X Gh Qe ground that he was not obliged to reimburse him. Which of the following is correct? a A can recover his reimbursement to X to prevent unjust enrichment on X's part at the expense of lot recover because he has the civil obligation to reimburse X for the latter paid his debt to B 2. Aconnat recover because he partakes of a natural obligation Wh. A cannot recover since there was reimbursement by mistake. 7 19. Th which of the following instances does legal subrogation not apply? 3. when a creditor pays another creditor who is preferred, even without the debtor's knowledge b. when the third person, not interested in the obligation, pays with the express or tacit approval of the debtor FF when a third person pays the creditor without the knowledge or against the will of the debtor 7 and yet entitied to beneficial reimbursement. (@uds}-ComreAcr) 4. when, even without the knowledge of the deblor, a person interested in the fulfilment of th obligation pays, without prejudice to the effects of confusion as to the latter's share. Cqporane’) 20. A bought biscuits from a grocery store and was hospitalized due to food poisoning as a result of toxic substance contained in the biscuits sold to retailers by the Ace Foods Inc. A is now suing the said producer corporation for damages. Decide: 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 harmful substance therein c. A must claim damages from the grocery store and not from the producer since the grocery was the one which sold the poisoned food to A. gf Ace Foods, Inc. Is liable for damages due to quasi-delict due to its negligence in the preparation of the biscuits thus causing damage to A (anas/obuier /joe1) ya22- Acceptance of 3’commercial document is equivalent to payment: a, The check has been received as payment. The check became valueless because of the creditor's fault, fc, The check is a manager's or cashier's check. d. The promissory note is used as payment. 22, The debtor shall lose every right to make use of the period except: ‘a, When after the obligations has been contracted he becomes insolvent, unless he gives a guaranty or security for the debt JY. When he does not furnsh a gugranty or secunty forthe debt. Af. ‘c. When the debtor attempts to décond. d. When he violates any undertaking in consideration of which the creditor agreed to the period. 23, When the debtor binds himself to pay when his means permit him to do so is one: Ab. 4a0/i47 2. With a condition dependent upon the debtor's will . With the resolutory period upon the debtor's will. ‘ With the period dependent upon the debtor's will. Caugeanie deblor aril) ‘4, With the condition to be fixed by court. 24, D owes C PIM. G is the guarantor . A stranger S paid C the debt of D without the knowledge of the latter. In this case: ov. 1207 a. If D fails to pay S, the latter can compel G to pay him; b. IfG pays S, the former can demand reimbursement from D; #. Scannot compel G to pay him; d. D has no obligation to reimburse S because he paid without the consent of D. 25. A owes B PIM. A proposed to B that C will pay A's debt and that he will be released from all liabilities to him. B and C agreed to the proposal. Later, when B tried to collect from C, he found ‘out that he was insolvent. ‘Ais rio longer liable to 8 because of the substitution of C in his place if he had no knowledi of the insolvency despite it being of public knowledge; place if he had no ige b, Ais no longer liable to B even if he had knowledge of C’s insolvency provided it is not of public knowledge; c. Ais still liable to b because he was the one who proposed to B that C shall substitute him as deblor. A150 longer liable to b despite the insolvency of C unless said known to him when he delegated the debt. ravahon) was of public knowledge or26. Whenever in an obligation 9 period 1s designated, IL is presumed to have been established for the benefit of Cad ~ debhh th the cietor and the debtor the debior wf cop ade the ret @. the tnd pany 27. A owes B P10,000. C pays 8 P5,000, Now 8 and © are the creditors of A to the amount of 5,000 each. Suppose A has only P5,000.. Which 1s correct: a. Band C should divide the P5,000 equally © Amay choose whorn to pay b. C should be preferred Jf ® should be preferred 28.X 1s under obligation to deliver Y's car to the latter, However, before delivery Z destroys the car. Which one of the following 15 not correct a. X's obligation to give the car to Y 15 ext auisied fla 1ha/iof X 1 allowed to recover from Z © Y has the nght to bring an action against 2 4. X is not obliged to give Y an equivalent value of the car. 29. 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 amount of the debt, {f on December 1, 2001, X will be reicnbursed by Y, the latter will be liable for AZ. P210,000 with interest from July 1, 2001 to December 1, 2001 ’b. 10,000 without interest ¢, P10,000 with interest from May 1, 2001 to July 1, 2001 4. P10,000 with interest from May 1, 2001to December 1, 2001 30. A, B and C solidarily owe solidary creditors X and Y P30,000. X remitted the entire obligation in favor of A. The effect is: a. The obligation is not extinguished until A coltects from B and C. b, The obligation is not yet extinguished until ¥ is paid by X his share of the cradit A cannot recover from B and C because remission in hefavorrextendsto the benefit of B and C ‘d. A can recover from B and C their respective share of the debt 31, When A voluntarily takes charge of the neglected business of B without the latter’s authority where reimbursement must be made for necessary and useful expenses, there is a: 2. Quasi delict 2. Negotiorum Gastio C b. Quasi Contract ¢. Solutio Indebiti 32. When the debtor binds himself to pay when his means will permit him to do so, the obligation is: a. conditional simple b. pure PB with a period 33. X and Y are solidary debtors of A, B, C and 0, joint creditors to the amount of 8,000. How much can A collect from x? a. A could recover P8,000 from X. A, in turn has to give to B, C and D P2,000 each. b. A could recover P4,000 only from X A could recover P2,000 only from X @. A could recover P8,000 from X, A, in turn does not have to give to B, C and D P2,000 each 5 34. A owes B P150,000 due on August 31, 2000. A executed a mortgage in favor of B on A'S building to guaranty the obligation. "On August 10, 2000, the mortgaged building was totally lost due to an earthquake. On August 12, 2000, B demanded payment from A, Is B’s demand valid? a No. The obligation is one with a definite period, thus the creditor cannot demand fulfillment of the obligation before It due. b. No. The mortgage was extinguished because the object of the contract was lost through @ fortuitous event. as due at Z Yes. The debt becomes due at once because the guarantee w. rm 7 (oruitos event, nies the debtor can mortgage anatherptecene e aaeuah erouGN 8 d. Yes. The debts becomes due at once because the period's benefits is given solely to the creditor thereby giving the creditor the right to demand performance even before tlhe due Gate, 35. X is obliged to give Y a specific car on July 15, 2000. X did not deliver the car on July 15, 2000. On July 20, 2000, an earthquake destroyed the bullding where the car was parked and the car was destroyed. Is X still liable? NO DEMAND, No DELAY $ (- No. Considering that ne demand to deliver was made by t 1c thing was | t fortuitous event, hence the obligation is exunquished. Vn Me SPECIRE thing was lost due te b. No. The obligation is extinguished, even ifthe debtor is already in default, because the debtor can plead impossibility of performance. c, Yes. X is already in legal delay, thus the obligation to deli los ing Is co into monetary ciaim for damages, lcliver the lost specified thing is converted d. Yes. The creditor can instead demand for a substitute of equivalent value from the debtor.290 ON ree (3) of the following the exception? 19 Cases advance payment by the debtor is not recoverable. Which is |. The obligation was not yet due and demandabl a sah f The sblgation was nos Baie jemandable but the debtor believed it was already due b. The payment is only for interest and credited to the proper period. The advance payments were made by both parties rec praca d. The debtor was aware of the period. “i See nee 37. Cis the creditor of D in the amount of 50,000. G is the guarantor of D. D paid C partially with P20,000. A, not knowing 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 in the obligation? @, The obligation is extinguished. A cannot recover any amount from D, but A can demand reimbursement from G in the amount of P50,000. b. The obligation is extinguished. A can demand P30,000 from D because this amount benefited ©, or, A having been subrogated into the rights of C, can proceed against G. ¢. The obligation is not extinguished. A’s payment being against the will of D does not extinguish the obligation. # The obligation is extinguished. A can demand P30,000 from D, but if D cannot pay, A cannot ordinarily proceed against guarantor G because A is not entitled to subrogation. 38. This is payment in kind: 2. consignation dation in payment b. payment by cession 4. application far payment 39. 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 C collect from £? a. A, Band C could collect P20,000.00 from E. #. 4, Band C could collect P30,000.00 from E. ‘c. A, B and C could collect all the P40,000.00 from E. d. A, Band C could collect 20,000.00 from E and P10,000 from F. 4@. A obliged himself to pay X P100,000 in 30 days plus a penalty of P20,000 if he fails to pay the ¥ obligation in due time. A failed to pay the obligation in 30 days: X can demand from A. The principal of P100,000 plus P20,000 penalty Ant: 234 Gf. ’b. The principal of P100,000 plus P20,000 penalty, plus legal interest c. The principal of P100,000 plus legal interest d. The principal of P100,000 plus P20,000 penalty, plus legal interest, plus damages. zxagehin 41. A signs a premissery nete and binds himself te pay X P100,000 plus 15% per annum interest en June 30, 2000. 3. Before June 30, 2000, X can demand payment b. If en June 30, 2000 A is paying X, the latter refuse the payment c. A can cempel crediter X te accept payment befere June 30, 2000 A. Because the peried is fer the benefit ef the debter and crediter, X can refuse any tendered payment before June 30, 2000. 42. A ewes X P50,000 payable en er befere June 30, 2000. S whe is nét a party te the centract and witheut the censent and against the will of A paid X the P50,000 on April 1, 2000 when the prevailing rate of interest was 12% per annum. a. S.can ask reimbursement frem A in the ameunt of PS0,000 plus 12% interest frem April 1 te June 30, 2000. S can reimbursement frem A in the ameunt of P50,000 /234 S cannet ask reimbursement frem A because the payment by § is witheut the censent and against the will of A. d. Scan ask refund frem X because the payment by S was against the will ef A. 43. When the obligation is extinguished because of the passage of time, this is: a. fulfillment of resolutory condition Prescription b. arrival of resolutory period G. rescission 44, When the debtor abandons or transfers all his properties to his creditors so that the creditors my sel the properties and out of the net proceeds the creditors recover their claims, this is callec a. dacion en pago Cay b, tender of payment and consignation #. payment by cession oy te er alyReSA: BUSINESS LAW Quiz on Obligation ~ Part 1 Page 6 45. When the pericd is “on or before a date”, the debtor has the benefit of the period. This benefit is lost and the obligation becomes demandable when: the debtor attempts to ascond AN) pag, b. after contracting the obligation, the credtor suspects the debtor of becoming insolvent, c. The guarantee given by the debtor is not acceptable to the creditor d. Demand by creditor could be useless. 46. Unless the law or the stipulation of the parties requires another standard of care, the obligation to give a thing carries with it the obligation to take care of it with: @. extra-ordinary diligence FF diligence of a good father of a family b. degree of care agreed upon by the parties 4. diligence of a good family of a father 47. A entered into a contract with B by which A promised to deliver at price stipulated in the contract. Such delivery is to made on February 14, 2001 with penalty in case of default. In this Case, no further demand by B on A is necessary to consider Ain delay because: * 4 a. time is of the essence of the contract c. the demand would useless B®. the obligation expressly so provides d. answer not given he ’ ’ ‘ 48. One of the following shall produce the effect of payment of debts: a. delivery of check C, delivery of promissory note b. tender of Central'Bank notes ‘ AC dacion en pago 49. If the creditor to whom tender of payment has been made refuses without just cause to accept it, the debtor shail be released from responsibility by: a. assignment of property ¢. adjudication or pacion en pago ZF consignation of the thing or sum due ~ 4 4. condonation . 50. (A executes @ promissory note in favor of B who subsequently indorsed it in favor of A. The obligation to pay the promissory note is thereby extinguished because there is: confusion or merger . remission 'b. novation d. compensationBUSINESS LAW Atty. M.$. Bonate Jr. QUIZ ON OBLIGATION - PARTI 1, A, B, and C are solidarily creditors of D in the amount of Php15,000.00, C demanded payment from D. After the demand for payment by C, D in order to extinguish the entire obligation may pay to: a. Aonly b. Bonly f& Conly d, To either A or B 2. No person shall be held responsible by reason of fortuitous event except: a. When time is of the essence of the contract; b. When demand would be useless; @ When the nature of the obligation requires the assumption of risk; (ex. insurance company d. When the obligation is purely personal in nature. 3. Dela Cruz obliged himself to deliver a determinate horse to Mary Jane on November 5. When the date of the delivery of the horse arrived, the horse has already an offspring. Dela Cruz is obliged to deliver the: #. Horse only; tye (usp b. The horses as well as the offspring; 7" c. Dela Cruz can refuse to deliver both the hérse and the offspring; d. Dela Cruz can ask Mary ann to pay the offspring. 4, When the obligor voluntarily prevents the happening of the condition it is deemed that the condition is: Constructively fulfilled c, Constructively demandable 'b, Constructively extinguished d. Constructively nullified 5. A bound himself to deliver a determinate horse to B on January 14, 2002. On January 16, 2002 the horse was struck and killed by lightning. a. Aisiliable for the loss of the horse because he was in delay; b. A has the obligation to replace the horse; Z. Xs obligation is extinguished; fa. B may claim damages from A. ++ amet Ay 6. Payment by cession as distinguished from from dation in payment, The debtor 1s not necessarily in a state of financial difficulty The effect is to release the debtor for the net proceeds of the things cede or assigned. The property is alienated by the debtor to the creditor in satisfaction of a debt in money. What is delivered by the debtor is merely a thing to be considered as the equivalent of the performance of the obligation. aoe 7. A owes B P20,000 which became due and payable last June 23, 2001. On that date A offered B 10,000, the only money 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 P10,000 with the request that he turn the money to B. The money was stolen while in C’s possession, How much may B still recover from A? . 20,000 b. P10,000 c. P15,000 4.0.00 8. If a third person pays an obligation, What are the rights which are available to him if he pays the obligation with the knowledge and consent of the debtor? First Answer ~ He can recover from the debtor the entire amount, which he has paid. ‘Second Answer - He is subrogated to all of the rights of the creditor. & Both answesare correct ¢. Only the first answer is correct . Both answer are wrong d. Only the second answer is correct 9. A,B and C executed a promissory note binding themselves to pay P9,000.00 to x, Y and Z. The note is now due and demandable. Can the creditors proceed against A alone for the payment of the entire debt? a. No, each creditors can collect only P3,000 from A. eee b. Yes, either x, ¥ or Z can collect P9,000 from A, 9 No, each creditor can collect only 1,000 from A, d. Yes, since the promissory note is silent with respect to ti i ation is eae ean Pect to the rights of the creditors, the oblig:10. Indivisibility as distinguished from solidarity. a. Plurality of subject is ifitile. inde spenccbde- bh. When the obligation 1s converted into one of indemnity for damages because of breach, the character of the obligation remains Refers to the legal te or vinculum. LB Refers to the prestation which constitutes the abject of the obligation, 11. A source of obligation not arisiny from law. a. Negotiorum gestic —b, Solutio indebiti—c. Culpa aquilian -f. Contract 12, The loss or deterioration of the thing intended as a substitute through the negligence of the obligor does not render him liable | Cfaculpeie ‘A person alternatively bound by dilferent prestations shall completely perform one of them. FF True, true b, True, false , False, true 4, False, false 13, There being no express stipulation and if the undertaking is to deliver a determinate thing the payment shall be made, a. At the domicile of the debtor b, At the domicile of the creditor A. Whatever the thing might be at the moment the obligation was constituted ‘d. Whenever the thing might be at the moment the obligation Is to be fulfilled 14, Demandg is net needed te put the debter in default, except a. When demand weuld be useless When the parties s@ stipulate When time is the essence When the fixing ef the time is the centreiling metive fer the establishment ef the centract aot 15. Culpa aquiliana as distinguished from culpa contractual a. Preet of due diligence in the selection and supervision of employees 15 not as a defense. b. Pref of the contract and of its breach is sufficient prima facie to warrant recovery C, The neghigence of the defendant is merely an incident in the performance of the obligation Jf The seurce of liabity isthe defendants negligent act or omission itself. 16. This 1s the kind of diligence that the obligor must observe in the performance of his obligation to give something: Diligence of a good father of a family. Extraordinary diligence of a good father of a family. C. Diligence of a father of a good faniily. 1G. Diligence of a good father of a family even if the law or the stipulation requires another standard of care. 17..D owes C PIM. X without the knowledge or against the will of D paid C P2M, Can X get reimbursement from 0? a. P2M by way of reimbursement from D to prevent unjust enrichment on the part of D at the expense of X. XE PAM only for that is the extent of benefil of 0, ‘c. No reimbursement because the payment was not proper being without the knowledge or against the will of D. d. PAM plus interest from the time of payment until reimbursement, 418. Mel sold to Jay her car and promise to deliver the car to Jay on Januar a ry 30, 2004. On January 15, 2004, Mel sold the same car to Patrick and Patrick Immediately poss Le 4 2004, Jay has not received the car from Mel ly possessed the car. As of February 5, ‘a. Jay can cancel the contract of sale between Mel and Patrick becau: him and Mel was perfected first; “ause the contract of sale between Mel cannot be considered in delay because there was’ no demand yet from Ja b. Z Mel is already in delay, even if there was no demand from Jay ar a eal ‘The sale is rescissible because of damage caused to Jay. 'Y and she shall be llable for damages; 19,5 sold his car with Plate No. XYZ 123 to B and & paid 150,000 to 5, the dear aa be delvered by S to B.on December 14, 2002. Which of the following seen fee eeed on the facts given? Pep is considered the owner of the car on December 14, 2002. - '§ may deliver the car to B on December 12, 2002 and compel 8 to accept eG may demand for the delivery of the car on December 13,2002. * AE Smll bein delay if he will not be able to deliver the car on the maturity dateation ~ Part 11 e3 20. Vo he alata statements ste ant onc? Pomme a, ‘Where on ligation is secu by sleds oF mortgage andi not pid when due, the pledge », Sr Mertgaaen may appropriate the thin yen bythe way of pledge ana montgade. _D: beth oledge nt mortgage, the cetor bene to dlency judgment 4 Pledge and mortgage are accessory contracts because they cannot evs by themselves Unless otherwise agreed upon by the partes, the sale of the mortgaged property extinguishes full te mortgage cansttaed thereon 21.4, 8 and C borrowed P3M fom O, € and F evidenced by a promissory nate worded as follows to wit." Promise to pay D, E and F P3M, (Sd) A, B and C." How much can D collect from A? a Pa boom Se PLS “erin 22, A, B and C bound themselves to deliver to X a specific car worth P3M. Due to the fault of A, the car was fost tn this ease: 3." X cam cham damages fom any one of the three for his proportionate part of liablty because the otigation is indivisible b, X claim only from A the whole amount of damages other than the value ofthe car. Since ts soldarylabites for dannages, x car claim the same from any ofthe three. a Only A is lable for damages although B and Cafe lable for their respective shares in the obligation 23.1. M and N ave the soidary debtors of ¥ forthe amount of P200,000 payable as follows: "50,000 payable men he passed the CPA Board Exems; M ~ P 100,000 payable en February 14, 2004; N= P 150,000 payable upen completion of his construction project. IFL snl pass the CPA Board Exams, what shall Bethe right of Y? 2, demand P0,000 from | only: . demand P200,000 from t, M and W: AS. demand P50,000 from L, M and N; d, demand P300,000 from L only. 24, 8 obliged himself to delver the cans of powdered milk of ® from Pangasinan to Manila. While his truck tuas traveling on the North expresaway, was hi Jacked By a band of robbers who also took the Cans SF milk belonging fo B. 1s A lable forthe loss of the goods?” "ho, because they were generic things and they cannot be lost b. Yes, because he was in possession of the same at the time of the loss and therefore presumed at fault «, Yes, because there was no stipulation exempting him from los in case of fortuitous event. BF No, because the loss was due to fortuitous event. 25.4 brought her dlamond ning to a jewelty shop for cleaning and the latter undertook to return the ring by February 1, 2000. When the said date arrived, the jewelry shop Inferred A that the Job Was not vex nished aiid they asked A'to return five days afer, On February 6, 2000, Awent to the shop t0 Claim the ring but she was informed that the same was stolen by a thief the night before. Decide, a. The jewelry shop is nat lable for the loss because it took place due to the force majeure; The Jewelry shop I ble rit was so supulatee between the partes; 27 The Jewelry shop Fs liable forthe los despite the force majeure becouse of delay; G. The Jewelry shop Is rot lable because there was no delay On ts port. 26. In three of the following cases, compensation cannot be claimed by the debtor except a, By the bailee in commodatum; Bf By the depositor in a contract of deposit; /2¢e ‘c. By the person obliged to give support due by gratuitous title; d. By the debtor in an obligation arising from @ penal offense. 27 Which of the following is not a requisite for legal compensation? a, Both debts are due; b. Both are liquidated and demandable; [&_ By the person obliged to give support due by gratultous tte; .d._ By the debtor In an obligation arising from a penal offense, 28. A owes B PIM guaranteed by X. In turn, B owes A P.5M. a failed to pay B a hone Me ay B and the latter is 2. Xs lable to B for PAM because as guarantor he Is liable for the debt is late fo of the debtor in case of non- b,x shall be liable to 8 for P.5M only ifthe latter agrees to the compensation; ¢. X cannot claim compensation against 8 because the latter owes him nothing: A Kan set up compensation as regards what 8 owes A. A 7290 e now 29, A owes 8 P 1M guaranteed by C. 8 assigns his credit to X, credit to, the guarantor. Does A sti have to pay C? | SNS MIS Credit to ¥. Y assigns his a, No, because the guarantor is liable to the creditor 8 and not Yes, because the quarantor has naw become the creditor,» eter A: ‘c. No, because it is the obligation of the quarantor pay the credit eves. because the quarantee has been cman nor Pay the creditor for the benefit of the debtor:E530. & owes B PIM, BOWES A P.5M. B assigned credit to with the consent of @ who reserved his right to compensation Z Ran clam compensation against © as to what b owes him B.A cannot claim compensation against C because he consented to the assignment, ©. Acannot clainy compensation against © without his consent 4. Acan claim compensation against C even without the reservation. (ag 3). (A owes 8 PIM due on Jan 21, 2001, 8 owes a P.2M due on lan.20, 2001 and P3M due on March 2, 2001. b assigned the credit to C on Feb. 2, 2001 without the knowledge of A who obtained knowledge of the assignment of credit on Feb. 4, 2007 2, cannot claim compensation against C because af his knowledge of the assignment; 2% Kean claim compensation up to F.2M only; €. A can claim compensation of all the debls of B to him; d. Legal compensation cannot take place. 32. Aowes 6 PAM duc on Feb, 3, 2001, Bomes A a lancer G5R worth PIM due an Feb. 4, 2002. @. On Feb. 3, 2001, A cannot claim compensation because one of the debts is not yet due; b. On Feb. 4, 2001, A can claim compensation because both debts are now due; ©. The parties can agree on compensation only on Feb. 4, 2001 when both debts are due; #® (egal compensation cannot take place PAle33. A owes b P1M with 12% Interest. AS agreed upon among the parties, the principal amount shall be aid to b but the interest shall be given to C who accepted the supulation in his favor. Later, A and b agreed that instead of cash it shall be parcel of land worth P1M. The novation of the obligation shall also extinguished the accessory obligation to pay the interest we Yh In the absence of the consent of cto the novation, he 1 stil enttid to the interests ‘C. With or without the consent of C, the obhgation to give the interest to him is also extinguished because of novation of the principal abligation; d. Since the parcel of land could not possibly earn interest, the obligation to pay interest is extinguished. 34. A owes B a sum of money and secured by a pledge on his car. Later, the car 6 fourd in the Possession of A. a. It's presumed the debt of A has been condoned; b. Its presumed both the debt and pledge has been remitted; ._ It ss presumed the debt is extinguished, 4 It is presumed the pledge is condoned. 35. 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; b. When the title of the obligation has been lost; J. When with just cause, the creditor refuses to issue a receipt; ‘@. When he ts incapacitated to receive the payment at the time it is due, 36. 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. ZZ The creditors become owners of the properties assigned to them; The creditors are authorized to sell the p-aperties of the debtor 37. Which of the following is not a requisite of dation én payment? b. One debtor and one creditor: Bc) Debtor ts not necessarily insolvent; @. IK The creditor becomes owner of the property used as payment; fe. acceptance of the creditor Is not necessary. 38. D obtained a foan from C payable on or before December 96. D obtatne mber 31, 2002. Which of the following statements a. D.can only pay the obligation on December 31, 2002; b. Can demand payment from 0 on or before December 31, 2002 ¢. Ccan demand payment from D even before December 31, 2002. © can pay before December 31, 2002; 5 ‘e. None of the above 39. The obligation of Pedro in favor of Juan amounts to Fnp30,000.00 payable un May 5, 2002 15, 2002 Ciraco and Pedro agreed that Grace will pay the oolgoticn oe medey Na ne eae to the said agreement. The change of the debtor in thie case fe collec, 2. substitution b. €xpromission © subrogation Af. delegacia40. x Issued a promissory note to A amounting to Php10,000,00. A purchased @ computer from 8 and he indorsed the promissory note to B. B indorsed the promissory note to C in payment of his loan. C indorsed the said promissory note to X as payment for the repair of his car. The obligation of X in this case is extinguished by: a. novation & confusion or merger of rights . compensation or merger of rights d. condonation or remission of debts 41, C bought the only 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 ¢, Where the car is on April 30, 2002 © Where the car is on February 15, 2002 d, domicile of the creditor 42. D has an obligation to deliver his only dog to C on October 16, 2001. On October 10, 2001, the said dog gave birth to seven puppies. On October 16, 2001, D failed to deliver the said dog. Who shall be the owner of the dog on October 16, 2001? a, C because that is the agreed date of delivery; A. D because the dog is still in his possession; c. C because he has the right to demand its delivery; d. D because the delivery of the dog is dependent upon his will, 43. When the obligor binds himself to pay when his means permit him to do so, the obligation is: a. conditional b. facultative pure a with a period 44. A obtained a loan from B in the amount of Php10,000.00 payable on December 31, 2002 plus 10% interest. A won in the 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 payment. Which of the following statements is correct? a. can file consignation in court because B refused to accept his payment without justifiable cause. b. B can be compelied to accept the payment if the interest will be increased. c, B must accept the payment because it 1s complete; A cannot compel 8 to accept his payment because the loan is not yet due. 45. D has the obligation to give a two-year old black male dog to C on April 30, 2002. On April 2, 2002, all of the dogs of D were hit by a lightning and they alll died. Therefore: a. The obligation of D to Cis extinguished. ¢. C can only demand for damages from D. 48. D must still give a two-year old black male dog to C. d. C can demand for the dog plus damages. 46. In alternative obligation, the right of choice belongs to : a. The creditor ¢. Both the creditor and the debtor p. The debtor 4. Third person 47. In facultative obligation the right of choice belongs to: a. The creditor ¢. Both the creditor and the debtor &. The debtor 4. Third person . None of the above 48. The sources of lability for damages are the following except: a. Fraud b. Negligence c. delay ¥. Quastdelict 49. When the fulfillment of the condition depends upon the sole will of th obligation shall be: e debtor, the conditional a. Voidable b. Unenforceable . Valid SF Void 50. Z obtained a loan from X on the amount of Php10,000.00. Z promised to Php10,000.00 to X as soon as possible. pay” the said loan of oe ne X as so Possible. Two year had elapsed but the loan is still unpaid. The remedy a. To file an action against Arturo for collection of debt; b. To demand payment for damages; ©, To attach the property of Z; A. To ask (petition) the court to fix the period,Business Law QUIZ ON OBLIGATIONS - PART it Atty. Marceliano S. Bonafe MULTIPLE CHOICE, Select the best answer by writing the letter of your choice As Pia 7 a D, Solidary debtors, are obliged to give V, W, X, Y and Z, joint creditors, a, V may collect from € P20,000.00 ¥- Vay collect from C P4,000.00 ©. V may collect from € P5,000.00 4. V may collect from € P1,000.00 A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z, solidary creditors, 20,000.00 # V may collect from D P20,000.00 'b. V may collect from D Pa,000.00 : c. V may collect from D 5,000.00 , d. V may collect from D 1,000.00 ‘\ 25, B, 35 and C, 17, are solidary debtors of X in the amount of F9,000.00 [28%//Age eee a. X may collect from A P9,000.00 X may collect from B P6,000.00 . X may collect from C P9,000.00 d. X may not collect because the obligation Is voidable, C being a minor. The following obligations are divisible, except an: Af. 25 {. Obligation to give definite things Obligation which has for its object the execution of certain number of days of work €. Obligation which has for its object the accomplishment work by metrical units d. Obligation which by its nature is susceptible of partial performance in obligations with a penal clause, the-creditor as a rule may recover from the debtor in case of breach the following: ‘a. The penalty as agreed upon, plus damages and interest b. The penalty and damages c._ The penalty and interest © The penalty only Consider the following statements: 1. The nullity of the principal obligation carries with it the nullity of the penal clause 11, The nullity of the principal obligation does not carry with it the nullity of the penal clause 111, The nullity of the penal clause carries with it the nullity of the principal obligation IV. The nullity of the penal clause does not carry with it the nullity of the principal obligation a. Statements I and III are true Be Statements I and 1V are true + ‘c, Statements Il and III are true d. Statements II and IV are true D borrowed from C P50,000.00. The obligation is secured by a chattel mortgage on D's Toyota car. Subsequently, D paid C P20,000.00. Unknown to 0, T, a third person, pays C P50,000.00 believing that D stilt owed C such amount. A. (237 a, T can recover P50,000.00 from D. If D cannot pay, T-can foreclose the mortgage on D’s Toyota car. b. T can recover nothing from D because he paid without the knowledge and consent of D c. T can recover P30,000.00 from D. If D cannot pay, T can foreclose the mortgage 2 on D's Toyota car, FF 7 can recover P30,000.00 from D. If D cannot pay, T cannot foreclose the mortgage on D’s Toyota car.8. The following statements concerning payment by cession are true, except F The creditors become the owners of the properties of the debtor that were ceded to them b. Payment by cession extinguishes the obligations only to the extent covered by the proceeds of the sale of debtor's properties ©. The debtor must be insolvent d. Cession affects all the properties of the debtor except those exempt from execution 9. D obtained trom ABC Bank a loan of P12,000,000.00 payable at the end of 10 years. Before maturity, an extraordiary inflation supervened causing the value of the debt to fall to P4,000,000.00 on the date of maturity. On due date, D must pay ABC Bank: 12,000,000 00 b. P4,000,000.00 ¢, P20,000,000.00 d. P16,000,000.00 10. B borrowed from XYZ Bank P2,000,000 00 payable at the end of 5 years. Before Maturity, an extraordinary deflation supervened causing the value of the debt to rise to P5,000,000.00 on the date of maturity. On due date, B must pay XYZ Bank: 2,000, 000.00 5,000,000.00 ¢. P800,000.00 d. P20,000,000.00 11. The money o currency which the debtor may compel the creditor to accept in payment of a debt, whether public or private is known as: a. Negotiable instrument Legal tender €. Negotiable document of title d. Mercantile document z 12. The transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of performance is. known as: a. Payment by cession Dation in payment ‘c. Application of payment d. Consignation 13, D owes C the following debts: P6,000.00 due on June 12; P6,000.00 due on Juen 15; 6,000.00 due on June 18; and P6,000.00 due on 20. Ali debts are unsecured except the debt due on June 20 which is secured by a pledye of D’s diamond ring to C. By agreement, the benefit of the term on the 4 debts was made in a favor of D. Assuming that D has P6,000.00 on June 18 and is ready to pay C, which of the following statements is correct? a. D may apply his payment of 6,000.00 to any of the debts due on June 12, June 15 and lune 18 since they are all due as of June 8 b. D may apply it only to the debt due on June 20 because it is the most burdensome to him ¢. D must apply the payment proportionately to the debts due as of June 18 at 2,000.00 each. HD may apply the payment to any of the four debts. 25g 3 14, The offer made by the debtor to pay his obligation to his creditor is known as: a, Consignation JX Tender of payment €. Application of payment d._Dation in payment “15. Consignation alone without any tender of payment is sufficient in the following cases, except: 2 @, When the creditor is absent, unknown or does not appear at thy Maen ppe e place of b. When the title of the obligation has been lost. gf When with just cause the creditor refuses to issue a receipt id. When two or more persons claim the same right to collect16.1 owes P 10,000.00. The obligation js evidenced by a promissory note. Subs lidorsed the not to A, A to B, B to C, and C back to M. The obligation of M is extinguished by: a, Compensation Confusion , Condonation d. Consignation 17. a. The condonation of the obligation to pay interest also results in the ‘extinguishment of the principal obligation. b, Condonation of an obligation requires the acceptance of the debtor. Both are correct statements. b, Both are incorrect statements €. Only the first statement is correct Pe Only the second statement is correct 18, One of the following is not a requisite of legal compensation. @. That each one of the obligors be bound principally, and that he be at the same time a principal creditor of the ether. b. That the two debts be due. c._ That both debts be liquidated and demandable AC That the debts are payable at the same place. 19. Henry, husband, and wilma, wife, are legally separated. By order of the court which decreed the legal separation, Henry is obliged to give a monthly support of P10,000.00 to Wilma payable within the first five days of the month. Wilma owes Henry P10,000.00 by way of a business loan. On the other hand, Henry has not yet given Wilma’s support of P10,000.00 for this month, Both debts are already due, Which of the following statements is correct? ‘8. Both debts are extinguished by legal compensation. J% Wiima may claim compensation but not Henry. ‘Henry may claim compensation but not Wilma. 4d. Neither may claim compensation. 20. D owes C P10,000.00 with G as guarantor. C, on the other hand, owes D, P8,000.00. Both debts are already due but D is insolvent. In this case-- 3, C may collect from G P10,000.00 JEG may collect from G P2,000.00 hecause a guarantor can set up compensation {as regards what the creditor may owe the principal debtor. €. Cmay collect nathing from G because D is insolvent. d, C may collect P8,000.00 from G. 21. D owes C 50,000: Subsequently, D proposed to C that T will assume his (0's) debt. C accepted the proposal of D. This substitution of debtor is known as- ‘a. Expromision Delegacion c. Tradition 4. Dacion en pago 22. Refer to the facts in No. 46, Assume also that on due date, T could not pay because of his insolvency wich was in fact subsisting but was not known to D or of public kenowiedge atthe time that D delegated his debt, In this case- ‘2. ¢ 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 (0) proposed the substitution. 46 C-cannot hold D liabie because his (0's) obligation was extinguished when he was substituted by T. d. The novation is void because D did not take steps to det when he (0) delegated his debt. : ermine the solvency of T 23. D obliged himself to give 5 grams of shabu to C. Later, the parti f Instead give to C 5 socks of ree. Which ofthe folowing statements ener Me #. 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 can demand the delivery of 5 sacks of rice from D. Fi The orginal obligation although void is validated by t Can demand the deiwery of 5 sacks of rice from O” "= "ew Obugaton. Hence, C 4. The new obiigation is only voidable because D had not yet performed therigina’ obligation at the time of the novation. Accordingly, the new obligation 1s binding and ¢ may demand the delivery of & D $acks of rice from D until obligation is annulled by a proper action in court einen eel d. Casual condition 25. Refer to No, 49. Which of the following is incorrect? a. The obligation of D is demandable if © marnes X on of before December 31, 2006. b. The obligation of D is extinguished if it is already January i, 2007 and C has not yet marred X The obligation of D is extinguished on December 2, 2006 if X dies on the sand date and has not yet married X Sk The obligation is demandable if C marries X on January 1, 2007. 26. The following are the requisites of an obligation, except: @. Passive subject, debtor or obligor. D. Active subject, creditor, or oblige. Efficient cause th Presentation. 27, Obligations may arise from any of the following, except: a. Contracts claw. b. Quasi-contracts. sf Negligence. 28. It is the voluntary administration of the property of another without his consent A. Negotiorum gestio . Quasi-delict b. Solution indetves 4. contract 29. It is @ wrong committed without any preexisting relations between the parties. @. Natural Obligation ©. Quasi-contract Jr Quasi-delict, 4. Culpa contractual. 430. Uniess the law or stipulation of the parties requires another standard of care, every person obliged to give something 1s also obliged to take care of it with. a. Extra-ordinary diligence b. Diligence of a father of a good family. 22 Diligence of a good tather of a family. d. Good diligence of a father of a family. 31. The creditor has a right that Is enforceable against a definite passive subject. This nght is known as: Personal right ‘ ©. Natural right ib. Real right Civil right 32, Its a thing that is particularly designated or physically segregated from all others of the same class. ‘a. Generic thing & Determinate thing b. Indeterminate thing 4. Real thing 33. One of the following 1s a determinate thing. 7% A BMW with license plate no, — ¢.- A Honda Civic Sir car HINT 888 . One of the four vehicles 4. A gold Rolex watch. 34. Demand must be made for delay to exist in one of the following cases. ‘a. When It is was stipulated by the parties that demand need not be made. b, When the law provides that demand need not be made, When the obligation ts stlent an the necessity of demand, d, When time is of the essence of the contract, 35. This refers to delay on the part of the creditor. a, Mora solvendi ex re ¢. Mora solvendi ex persona b, Compensatiog morae d. Mora acciprendi36, 37: 38. 39, 40. at. 42. 43. 44, 45. aS There shall be no lability for loss due to fortuitious event in one of the following cases. 2. When the debtor delays b. When the parties so stipulated that there shall be liability even in case of loss due to fortuitous event © When the nature of thie obligation requires the assumption of risk. A. When there was no stipulation as to the liability of the debtor in case of loss due to fortuitous event. The following are the remedies of the creditor to pursue his claims against the debtor, except: a. Pursue the property owned by the debtor. « b. Exercise all the rights and bring all the actions of the debtor for the said Purpose. (accion subrogatoria) ©. Impugn the acts which the debtor may have done to defraud his creditor. {accion pauliana) 3% Compel the debtor to perform the service in obligations to do. D borrowed P50,000.00 from C. C dies before he has collected the debt leaving S, his son a heir. Which of the following statements is correct? # $-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. nie b. Scannot collect because the credit ight is personal to C. ©. $ can collect only if D and C agreed that the right to the debt will pass on the heirs of C. 4. cannot because the law prohibits the transmission of the credit right. Dis obliged to give C a specific car if C passes the CPA Examination. This obligation is an example of: a. A pure obligation ‘An obligation with a suspensive condition ‘c. An obligation with a resolutory condition d. An obligation with a period One of the following obligations is not immediately demandabie. a. Pure obligation b. Obligation with a resolutory condition ¢, Obligation with an in diem period A A pure obligation Fx diem One of the following Is a void obligation? @. Dis obliged to give C P5,000.00 if C does not go to the moon. BL Dis obliged to give C P5,0000.00 if D goes to Baguio. nea €. Dis obliged to give C P5,0000.00 if C goes to Baguio. 4. D 's obliged to give C P5,0000.00 if D wins first prize in the sweepstakes on a ticket that he had already purchased. D is obliged to give C P10,000.00 if X dies. This an example of: @. An obligation with a suspensive condition b. An obligation with a resolutory condition An obligation with a period d. A pure obligation iden the debtor binds himself to pay when his means permit him to do so, the obligation is a. An obligation with a resolutory condition b. A pure obligation ¢; An obligation with a suspensive condition 4. An obligation with a suspensive period Whenever a period is designated in an obligation, been established for the benefit of: a. The debtor “ Both the debtor and e the creditor b. The creditor & Either of the parties the said period shall presumed to have The debtor shail lose the right to make use 3. When he becomes insolvent. b. When he violates any agreed to the period ¢, When the debtor attempts to abscond AB When he does not furnish any guaranty or security to the esa, Of the period in the following cases, except:Re@SA: The Review School of Accountanc QUIZ ON OBLIGATIONS PART . Pi 6ot age 6 of 6 46. An obligation ¢ cabs, pe ent €aS€S to be alternative and becomes a simple obligation in the fullewing When the debtor has communicated his choice to the creditor witen the right Bf choice has been expressly granted to the creditor and tie een Communicated to the debtor. © When among the several prestations that are due only one Is practicable a When several prestations are due but the performance of one is enough to extinguish the obligation, 47.0 obliged to give © a specific watch, a specific ring, or a specific bracelet. The parties agreed thot C will have the right to choose the thing which will be given to hin, Before C could make his choice, the watch ana the ring are lost through b's fault, successively, What 1 the right of C2 7 © inay choose the delivery to him of the bracelet, or the price of the watch or the price of the ring plus damages th. C cannot choose the price of the watch or the price of the ring because the said objects have already been ‘ost. ©. G can only choose to have the bracelet because anyway, D can still perform his obligation d. € can only Choose to have delivery of the bracelet or the price of the ring which was the last item that was lost plus damages 48,1 is obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as substitute, Which of tie following statement is true? 7 If the ring 1s tost through a fortuitous event before substitution, the obligation is extinguished. b, If the bracelet 1s lost through a fortuitous event before the substitution, the obligation is extinguished. ¢. If the ring is lost through a fortuitous event after substitution, the obligation is extinguished. d. If the ring 1s lost through the debtor's fault after substitution, the debtor shall pay damages. 49. A, B, C and D are obliged to give V, W, X, ¥ and Z P20,000.00 ‘i a. V may collect from A P20,000.00 b. Vimay coltect from A P5,900.00 Vmay collect from A P1,000.00 ‘d. V may collect from A P4,000.90 50. A, B, © and D, joints debtors, are obliged to give V, W, X, ¥ and Z, soldary creditors, 20,000.00 a. V may collect from B P20,000,00 bv may collect from 8 P4,000.00 V may collect from B P5,900.00 d. V may collect from B P1,000.00Business Law Atty. Marceliano S. Bonafe Jr. QUIZ. ON OBLIGATIONS - PART IV ee MULTIPLE CHOICE, Sclect the best answer by writing the letter of your choice. AA 1. Upon the proposal of a third person, a new debtor substituted the original debtor without the latter's consent. The creditor accepted the substitution, Later, however, the new debtor became insolvent and defaulted in his obligation. What is the effect of the new debtor's default upon the original debtor? ® a, The original debtor is freed of liability since novation took place and this relieved him of his obligation, b. tthe original debtor shall pay or perform the obligation with recourse to the new jebtor. ¢. The original debtor remains liable since he gave no consent to the substitution. 4. The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part. A 2. The liability of the partners, including industrial partners for partnership contracts entered into in its name and for its account, when all partnership assets have been exhausted is Arf muy a. Pro-rata, ab. Joint. ¢. Solidary. d. Voluntary B 3.%, the owner, constituted a 10-year usufruct on his land as well as on the building standing on it in Y's favor. After flood totally destroyed the building 5 years later, X told Y that an act of God terminated the usufruct and that he should vacate the land. Is X, the ‘owner of the land, correct? ‘a. No, since the building was destroyed through no fault of Y. b. No, since Y still has the right to use the land and the materials left on it. ¢. Yes, since Y cannot use the land without the building. vd. Yes, since the destruction of the building without the X's fault terminated the usufruct. 4.A borrowed P1 million from a bank, secured by a mortgage on his land. Without his consent, his friend B paid the whole loan. Since A benefited from the payment, can B compel the bank to subrogate him in its right as mortgagee of A's land? ‘a. No, but the bank can foreclose and pay B back. b. No. since B paid for A’s loan without his approval. €._ Yes, since a change of creditor took place by novation with the bank’s consent, ad. Yes, since itis but right that B be able to get back his money and, i not, to foreclose the mortgage in the manner of the bank? B 5.R borrowed P1 million from € and F who acted as solidary creditors. When the loan matured, E wrote a letter to R, demanding payment of the loan directly to him, Before R could comply, F went to see him personally to collect and he paid him. Did R make a valid neo should have split the ‘a. No, since R should have sp! payment between Rodrigo and Fernando. . No, since E, the other solidary creditor al Fence payment from R. % ready made a prior demand for c. Yes, since the payment covers the whole obligation. 7d, Yes, since F was a solidary creditor, payment to him extinguished the obligation. D_ 6. A natural obligation under the New Civil Code of the Philippines is one which: a, the obligor has a moral obligation to d : oe 9 fo, otherwise entitling the obligee to b. refers to an obligation in writing to do or not to do, c. the obligee may enforce through the court if violated by the obligor. ad. cannot be judicially enforced but authorizes the obligee to retain the obligor’s payment or performance.A 7% A dought B’s property through C, an agent empowered with a special power of attorney (SPA) to sell the same. When A was ready to pay as scheduled, B called, directing A to pay dlirectly to him. On learning this, C, B's agent, told A to pay through him as his SPA Provided and to protect his commission, Faced ‘with two claimants, A consigned the payment in court. B protested, contending that the consignation is ineffective since no tender of payment was rnade to him. Is he correct? rd. 254 2 No, since consignation without tender of payment Is allowed in the face of the conficting claims on the debtor. b. Yes, as owner of the property sold, B can demand payment directly to himself. ©. Yes, since A made no announcement of the tender, *d. Yes, a tender of payment ts required for a valid consignation. B 8. A owed B Pt million due on October 1, 2011 but falled to pay her on due date. B sent a demand letter to A giving her 5 days from receipt within which to pay. Two days after receipt of the letter, A personally offered to pay B in manager's check but the latter refused to accept the same. The 5 days lapsed. May A’s obligation be considered extinguished? a Yes, since B's refusal of the manager's check, which Is presumed funded, amounts to a satisfaction of the obligation, b. No, since tender of payment even in cash, if refused, will not discharge the obligation without proper consignation in court ©. Yes, since A tendered payment of the full amount due. ‘¥d, No, since a manager's check Is not considered legal tender in the Philippines. D 9.The following are the elements of an obligation, except: fa. Juridical/Legat Tie b. Active subject €. Passive subject d. Consideration / cause © 10. It is a conduct that may consist of giving, doing, or not doing something. a. Obligation b. Juridical necessity %#c. Prestation d. Contract A 11. It is a juridical relation arising from /awful, voluntary and unilateral acts based on the Principle that no one should unjustly enrich himself at the expense of another, a. Quasi-contract b. Quasi-delict ¢. Contract d. Delict D 12. The following are the elements of quasi-delict, except: ‘a, Act or omission b. Fault/negligence c. Damagefinjury xd. Pre-existing contract P 13. A debtor is lable for damages if he is guilty of any of the following, except: a. default (mora) yb. mistake ¢. negligence (culpa) d. breach through contravention of the tenor thereof €44, This term refers to a delay on the part of both the obligations, a. Mora accipiendi b. Mora solvend! *c, Compensatiog’ morae d. Solution indibiti debtor and creditor in reciprocal $ 15. It's an intentional evasion of the faithful performance of the obligation a. Negligence Yb. Fraud c, Delay d. MistakeC8 X borrowed money from a bank, secured by a mortgage on the land of ¥, his close frend, When the loan matured, ¥ offered to pay the bank but it refused since Y was not the borrower. Is the bank’s action correct? 2: Yes. since X, the true borrower, did not give his consent to ¥'s offer to pay. 4b, No, since anybody can discharge X's obligation to his benent. & Na, since ¥, the owner of the collateral, has an wterest in the payment of the obligation 4, Yes, since it was X who has an obligation to the bank, 17. 1h following are the requisites of mora solvendl, except: Obligation pertains to the debtor and is determinate, due, demandable, and inquldated 7b, Obligation was performed on fts maturity date. €. There fs judicial or eatrayudiial demand by the credtor ; d, Failure of the debtor to comply with such demand. 1D 18, The following are the requisites of fortuitous event, except: a. Cause 15 independent of the will of the debtor. b. The event is unforeseeable/unavoxdable. © Occurrence renders it absolutely impossible for the debtor to fulfill his obligation Wa normal manner, impossibility must be absolute not partial, otherwise not force majeure, ¥4.. Debtor contributed to the aggravation of the injury to the creditor. C. 19, A debtor may still be held liable for loss or damages even if it was caused by fortuitous ‘event in any of the following instances, except: ¥a. The debtor is guilty of dofo, malice or bad faith, has promised the same thing to two or more persons who do not have the same interest. b. The debtor contributed to the loss. ©) The thy to be delivered Is genenc. 4. The efit’ s guilty of fraus, negligence or delay or I he contravened the tenor of the obligation. AL 20.8, F, and T bound themselves solidaniy to pay A the amount of PS,000.00. Suppose B paid the obligation, what Is his right as against his co-debtors? Fra. B can ask for reimbursement from F and T. b. B can sue F and T for damages. ¢. B can sue for rescission. 6. B can dam a refund from A. B 21.8, F and T bound themselves solidarily to pay A the surn of P10,000.00. When the obligation became due and demandable, A sued B for the payment of the P10,000.00. B moved to dismiss on the ground that there was failure to implead F and T who are Indispensable parties. Will the motion to drsmiss prosper? Why? ‘a. Yes, because F and T should have been Impleaded as their obligation is solidary. eb. No, because the creditor may proceed against any one of the solidary debtors or some of all of them simultaneously. ¢. No, because a mation to disiniss is @ prohibited pleading, @. Yes, because F and T should also pay their share of the obiigation. 22. B, F and T are solidary debtors of A. Twelve (12) years after the obligat fd demandable, B puld A and later on asked for revnbursement of Fe ong fae is'B correct? why? : a, No, because the obligation has already prescribed, B. Yes, because the obligation i solidary. No, because in solidary obligation any one of the solidary debtors can pay the entire debt 4. Yes, because F and T will be unduly enriched at the expense of B. A een eaten 72m 0.8 cy as en become insolvent, the creditor makes @ demand on B to pay the debt, Ho nit any, May B be compelled to pay? ¢ debt. How much, 2a, P200,000.00 b. P300,000.00 d. P150,000,00Re@SA: The Review School of Accountancy QUIZ.ON OBLIGATIONS. PARTLY, Page 40f4 D_ 24. An obligation which ty based an equity and natural Jaw 1s known ass a pure: n civil b. quast contract 4. natural A 25. D bought a car from J and delivered @ check in payment of the same, Has D paid the obligation? Why? t4. No, not yet, The delivery of promissory nutes payable to order, or bills of exchange ar other mercantile documents shall produce the effect of payment only when they have been cashed, or when through the fault of the creditor they have been impaired, b. Yes, because a check is @ valid legal tender of payment. €. It depends, If the check is a manager's check or Cashier's Check it will produce the effect of payment. Fits an ordinary check, no payment because a check 15 as good as cash Cy 26. The following are the requisites of legal compensation, except: a, That each of the obligors is bound principally and that he be the same time a principal creditor of the other. b, That both debts consist in a sum of money, or if the things due are consumable, they be the same kind, and also of the same quality if the latter has been stated, ¥c, That the two (2) debts are not yet due. d. That they be liquidated and demandable,