OBLIGATIONS AND CONTRACTS

6. In Accion subrogatoria the creditor may

Multiple Choice Questions in Obligations and exercise all of the rights and bring all of the
Contracts actions which the debtor may have against
third persons if:
1. It is the juridical relation resulting from
lawful, voluntary, and unilateral acts by a. If the account is personal
virtue of which the parties become bound b. The debtor's acts are fraudulent
to each other to the end that no one shall c. The debtor has performed an act
be unjustly enriched or benefited at the subsequent to the contract, giving
expense of another. advantage to other persons
d. Creditor must have the right of
a. Agreement return against debtor
b. Vinculum juris 7. In Accion Pauliana Rescission, which
c. Contracts involves the right of the creditor to attack
d. Quasi-Contracts or impugn by means of rescissory action any
act of the debtor which is in fraud and to
the prejudice of his rights as creditor
2. This takes place when something is received provided:
when there is no right to demand it, and it
was unduly delivered thru mistake. a. The debt is due and demandable
b. There is a failure of the debtor to
a. Solutio Indebiti collect his own debt from 3rd
b. Negotiorum Gestio persons either through malice or
c. Vinculum juris negligence
d. Prestation c. The debtor's assets are insufficient
d. The debtor has performed an act
3. This happened when the creditor make a subsequent to the contract, giving
demand and the obligor fails to deliver the advantage to other persons
thing.
8. It causes the extinguishment or loss of
a. Negligence rights already acquired upon the fulfillment
b. Mora solvendi of the condition, that is, the happening of
c. Mora accipiendi the event which constitutes the condition.
d. Compensatio morae In other words, the fulfillment of which will
extinguish an obligation (or right) already
4. Demand is not necessary to incur delay existing.
when:
a. Condition subsequent
a. Creditor refuses the performance b. Suspensive
without just cause. c. facultative condition
b. The debtor is guilty of non- d. positive condition
performance.
c. Time is the controlling motive 9. When the thing deteriorates with the
d. If the obligation bears interest debtor’s fault, the creditor may choose one
of the following:
5. In what instance may we consider that
there is no delay? a. Mutual restitution
b. Rescission (cancellation) of the
a. In civil obligations obligation with indemnity for
b. In positive obligation damages
c. In obligation arising from crime c. Suffer the deterioration of the
d. In natural obligation thing
 d. Institute an action for negligence. ANSWER: D

10. It is a future and certain event upon the

arrival of which the obligation (or right)
subject to it either arises or is terminated. 4. When the characters of  the creditor  and  the
debtor  are merged in one and the same person,
a. Fortuitous events
b. Condition there is extinguishment of the obligation by:
c. Period
d. Date and time a. Compensation
b. Merger of Rights
II.
c. Novation
1. When the debtor binds himself to pay when his d. Remission
means permit him to do so, the obligation is:
ANSWER: B
a. Conditional
b. Pure
c. Simple 5. Through insidious words or machinations, A was
d. With a Period able to induce B to enter into a contract which
without them B would not have agreed to it. There
ANSWER: D is:

a. Undue Influence
2. Contracts  which cannot be sued upon unless b. Fraud
ratified, thus it is as if they have no effect yet are: c. Mistake
d. Misrepresentation
a. Voidable
b. Rescissible ANSWER: B
c. Void
d. Unenforceable
6. "A sells to B his lot and house in the city if A
ANSWER: D decides to transfer and live in the countryside" is an
example of:

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

you my debt  after I have arrived from abroad," this b. Potestative Condition
is c. Casual Condition
d. Resolutory Condition
a. Unenforceable
b. With a Period ANSWER: B
c. Void
d. Conditional
7. It is a mode of extinguishing an obligation when
two persons in their own right are creditors of each ANSWER: C
other.
III.

a. Confusion
1. When the debtor binds himself to pay
b. Reformation when his means permit him to do so, the
c. Compensation obligation is:
d. Novation
a. Conditional
ANSWER: C b. Pure
c. Simple
d. With a Period
8. A contract is in the stage of  conception when:
ANSWER: D
a. There is meeting of the minds.
b. Negotiations are in progress.
c. The parties come to an agreement. 2. Contracts which cannot be sued upon
d. The contract is perfected. unless ratified, thus it is as if they have
no effect yet are:

ANSWER: B
a. Voidable
b. Rescissible
c. Void
9. If the obligor binds  himself  to perform his
d. Unenforceable
obligation as soon as "he shall have obtained a
loan" from a certain bank, this obligation is:
ANSWER: D

a. With a Term 
b. Conditional
3. If the obligation of the debtor is "I will
c. Suspensive
pay you my debt after I have arrived from
d. Resolutory
abroad," this is

ANSWER: B a. Unenforceable
b. With a Period
c. Void
10.  Contracts entered into in a state of d. Conditional
drunkenness or during a hypnotic spell are:
ANSWER: D
a. Void
b. Valid
c. Voidable 4. When the characters of the creditor
d. Legal and the debtor are merged in one and the
same person, there is extinguishment of d. Novation
the obligation by:
ANSWER: C
a. Compensation
b. Merger of Rights
c. Novation 8. A contract is in the stage of conception
d. Remission when:

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

b. Negotiations are in progress.
c. The parties come to an agreement.
5. Through insidious words or d. The contract is perfected.
machinations, A was able to induce B to
enter into a contract which without them ANSWER: B
B would not have agreed to it. There is:
9. If the obligor binds himself to perform
a. Undue Influence his obligation as soon as "he shall have
b. Fraud obtained a loan" from a certain bank, this
c. Mistake obligation is:
d. Misrepresentation
a. With a Term 
ANSWER: B b. Conditional
c. Suspensive
d. Resolutory
6. "A sells to B his lot and house in the
city if A decides to transfer and live in the ANSWER: B
countryside" is an example of:

a. Mixed Condition 10. Contracts entered into in a state of

b. Potestative Condition drunkenness or during a hypnotic spell
c. Casual Condition are:
d. Resolutory Condition
a. Void
ANSWER: B b. Valid
c. Voidable
d. Legal
7. It is a mode of extinguishing an
obligation when two persons in their own ANSWER: C
right are creditors of each other.
11. Delay in the giving or delivering of a
thing
a. Confusion
b. Reformation
a. Mora solvendi ex re
c. Compensation
b. Mora solvendi ex persona
c. Mora accipiende ex re ANSWER: D
d. Mora accipiende ex persona

ANSWER: A 15. Rescission of contract can take place

in this case

12. Which of the following statements is a. When the thing which is the object of the
false? contract is legally in the possession of a third
person who acted in bad faith
a. Obligations to give definite things and those b. When he who demands rescission can return
that are not susceptible of partial performance whatever he may be obliged to restore
shall be deemed divisible. c. When the party seeking resolution can
b. Execution of a certain number of days of perform only as to part and as to remainder
work shall be divisible. d. When the seller cannot return the
c. Accomplishment of work by metrical units installments paid to him by the buyer
are divisible
d. An obligation to pay a certain amount in ten ANSWER: B
annual installments is divisible.

ANSWER: A 16. A defective contract where damage or

13. This contract is without effect unless lesion is essential
ratified:
a. Rescissible
a. Marriage between first degree cousins b. Voidable
b. Contract of sale between two insane persons c. Unenforceable
c. Contract of sale between husband and wife d. Void
d. Donation between husband and wife ANSWER: A

ANSWER: B
17. An instrument may be reformed d

14. Which of the following contracts is
not void ab initio?
a. Those whose object is outside the commerce
of men
b. That whose object did not exist at the time
of transaction
c. That which contemplates an impossible
service
d. That which is undertaken in fraud of
creditors
a. Simple donations inter vivos wherein no
condition is imposed
b. Wills
c. When the instrument does not express the
true intention of the parties due to mistake
d. When the real agreement is void
ANSWER: C

18. Three of the following contracts are
void. Which one is not?
a. Oral contract of partnership of three partners
and capital contribution is more than P3,000 in
cash
b. Written contract contemplating impossible
services
c. Oral contract of partnership where real
estate is contributed as capital
d. Agent's authority to sell land is given orally.
ANSWER: A
19. When a third person assumes the
payment of the obligation even without
the knowledge and consent of the debtor
but with the consent of the creditor
a. There is novation
b. There is delegation if debtor is released
c. There is subrogation
d. There is expromission if debtor is released
ANSWER: D
20. Which of the following is not an
element of legal compensation?
a. Debts to be compensated are due and
demandable
b. There is controversy or adverse claim over
any debts to be compensated
c. There are two or more debts of the same
kind
d. There are two or more persons who are
creditor or debtors of each other.
ANSWER: B
Question: Why is it important that
obligation in contractsbe faithfully
fulfiiled??
Answer: Laws are enacted to have order (or
require the performance of a particular action
to achieve the same) Since the terms and
conditions of a contract are considered the
governing laws between parties, it is necessary
to faithfully fulfill one's obligation, that is, to
avoid the occurrence of dispute. Hence, why do
we have to fulfill our obligations, that is to
achieving order between the parties to the
contract.
Question: How do you apply the laws on
obligations and contracts to everyday
activities and business dealings? 
Answer: We apply laws on obligations and
contracts unconsciously to our daily activities.
One will not notice that in performing a simple
common task you have applied several
principles on obligations and contracts. Like,
for example, buying a piece of pandesal, the
buyer will offer to buy and the seller will
accept. At this point, once the seller and buyer
agrees to the object and price, and their minds
have met; each of them will not just rescind or
refuse to comply. Even without knowledge of
law, one will not just back out from the
perfected sale.
Then, after the perfection of the contract of
sell; unknowingly, they will go on to
consummate the same. The buyer will hand the
money and the seller, in return, will hand over
the pandesal. A clear example of reciprocal
obligations, isn't?
If the money given is more than the price of
the pandesal, the seller will give the change.
That is because he knows no one should be
enriched at the expense of another; hence, he
has the obligation to return what is not due
him. Likewise, if what was delivered to the
buyer is more than what he paid for, he will
return the same under the same principle,
creating an implied obligation to return. 
In a simple, but very common, transaction, the
parties are not aware that they are applying
the basic principles of law on obligations and
contracts. They might not be well versed, or
even, have not had any formal education, yet
they apply these simple principles of law
unconsciously. Thus, If you ask: how we apply
laws on obligations and contracts on our daily
activities, we apply it unknowingly, but
instinctively, depending on one's value.