OBLIGATION

ABUSMAN, JOHN KENNETH B.

D borrowed P100,000.00 from C. The parties agreed at the time the obligation was
constituted that should D so desire, he may give his agricultural land to C by way of
dacion en pago to pay his loan obligation on due date. The obligation of D to C is

A. A conjunctive obligation
B. A simple obligation
C. An alternative obligation
D. A facultative obligation

AGUILAR, ANNE JOHNETTE V.

Tham is to give Billy P50,000, 000.00 if Billy will not marry Aurora on or before May 31,
2020. The obligation becomes effective on June 1, 2020 if Billy has not yet married
Aurora as of May 31, 2020. If Aurora dies on May 1, 2020 before Billy has married her,
when will the obligation become effective?

A. May 31, 2020

B. June 1, 2020
C. May 1, 2020
D. The obligation is void.

ANILAO, ELIJAH JOYCE M

Mary took a public bus on her way home. Although Mary paid for her fare, the bus
conductor did not issue her a ticket. Along the way, the bus met an accident causing a
slight injury to Mary and other passengers. If Mary is to recover damages from the bus
owner, the source of the owner's liability is?

A. Law
B. Quasi-delicts
C. Contract
D. Mary cannot recover any amount because no ticket was issued.
AQUINO, ERIKA JOY L.

Faye is obliged to give Angela a specific ring. The parties agreed that Faye may give a
specific beacelet as a substitute. Which of the following statements is true?
A) if the ring is lost through a fortuitous event before substitution, the
obligation is extinguished.
 OBLIGATION
B) If the bracelet is lost through a fortuitous event before substition, the obligation is
extinguished.
C) if the ring is lost through a fortuitous event after substitution, the obligation is
extinguished.
D) If the ring is loat through the debtors fault after substituiom, the debtor shall pay
damages

ARANILLA, CAREN JOY D.

Harry borrowed P15000 from Ron. On due date, Harry was not able to pay but he
promised to give Ron a specific ring, a specific bracelet, or a specific necklace, in
payment of the death. Ron accepted the offer of Harry.
How was the obligation of Harry P15000 extinguished?
A. By compensation
B. By novation
C. By confusion
D. By condonation

BATOCABE, CLEO NOREEN E.

Finch stole the carabao of Harry. Finch was arrested, tried in court and convicted. Aside
from being sentenced to a prison term, Finch was also ordered by the court to return the
carabao. However, the carabao died before Finch could deliver it to Harry.

A) Finch is liable to Harry whatever may be the cause of death of the carabao.
B) Finch is liable to Harry only if the carabao died because of Finch' fault.
C) Finch is not liable to Harry if the cause of the death of the carabao is fortuitous
event.
D) Finch has no liability to Harry whatever may be the cause of the death of the
carabao because his obligation to return the carabao was due to an order of the
court and not on his own violation.

DAVILA, JOHN BRAIN A.

Which of the following obligations is a pure obligation and is demandable at once?

A. Braingene to allow Brainie to use Brainerd's car until December 31, 2020.
B. Braingene to allow Brainie to use Brainerd’s car until Brainie finishes her course
in accounting.
C. Braingene to give Brainie hes car. No mention is made when Braingene
shall give the car.
 OBLIGATION
D. Braingene to give Brainie a car if Bri on Christmas day.

DIALA, MARY JOY L.

One of the following is a valid obligation. Which is it?
A. Mary promised to give Joy P50,000.00 if Joy will fly to the moon.
B. Mary promised to give Joy P50,000.00 if Joy gives her 10 grams of shabu.
C. Mary promised to give Joy P50,000.00 if Mary goes to Japan
D. Mary promised to give Joy P50,000.00 if Joy does not give her a dog that
talks.
DIMAYUGA, KRISTINE NICOLE V.
Seth has a grains warehouse in Bulacan while Ash has a grains warehouse in Cavite.
Seth borrowed 12 sacks of rice worth P12,000.00 from Ash for Seth's customer in
Cavite. Later, Ash borrowed 12 sacks of rice which was also worth P12,000.00 from
Seth for Ash's customer in Bulacan. Both the obligations are due. Transport costs to
Bulacan amount to P1,000.00, while those for Cavite amount to P800.00.

A. Seth and Ash need not pay each other since their debts compensated each
other.
B. Seth must pay Ash P12,800 while Ash must pay Seth P13,000.
C. Seth and Ash need not pay each other since their debts compensated each
other, except for the delivery charges which Ash must pay to Seth in the
amount of P200.00
D. Compensation cannot take place because the debts are payable at different
places.

GALVEZ, NIÑA CHRISTINE M.

Consider the following statements:

I. The nullity of the principal obligation carries with it the nullity of the penal clause.

II. The nullity of the principal obligation does not carry with it the nullity of the penal
clause.

III. 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 tje principal
obligation.

A. Statements I and III are true.

 OBLIGATION
B. Statements I and IV are true.
C. Statements II and III are true.
D. Statements II and IV are true.

GARBIDA, JANE CARLA C.

Under Active solidarity, Lucifer Morningstar, Chloe Decker and Dan Espinoza with the
debt share ratio of 3:6:1 are indebted in the amount of P25 to Mazikeen and Amenadiel.
In this case how much may Mazikeen collect from Lucifer? Chloe? Dan?

A. 7.5, 15, 2.5

B. 8.33, 8.33, 8.33
C. 3.75, 7.5, 1.25
D. 6, 12, 2

HUERTAZUELA, ARA B.
Jizelle is to give Brain P100,000 if Jizelle goes to Luneta Park. Is the obligation
valid?
A. Yes
B. No
C. Both A and B
D. None of the choices

LINGCORAN, JAIRA KYLA M.

not having sufficient cash, offered to give either her ring or her bracelet to Erica. Erica
accepted the offer. Based on the foregoing facts, which of the following statements is
incorrect?

A. The new obligation is alternative obligation.

B. The right to choose the item to be given belongs to Erica.
C. The original obligation of Angel is an obligation with a period.
D. The original obligation of Angel is extinguished by novation.
MANALO, FRANCIES NICOLE C.
Denver, Rio and Tokyo are solidary debtors of Nairobi in the amount of P9,000.
Subsequently, Nairobi renounced the share of Denver. Denver accepted the
renunciation of his share. On due date, Rio paid Nairobi P6,000. Rio demanded
reimbursement from Tokyo but Tokyo is insolvent. In this case:

A. Rio may demand the payment of P3,000 from Denver.

B. Rio may not demand any payment from Denver because his share had already
been renounced.
 OBLIGATION
C. Rio may demand the payment of P1,500 from Denver representing Denver's
share in Tokyo's insolvency.
D. Rio may demand P4,500 from Denver so that their sharing in the total debt is
equal.

MARAÑO, DONITA MAE P.

Elly, Mike and Will are solidarily liable to Dustin for ₱30,000. Elly pays Dustin the whole
amount due. Will, however, is insolvent. Which statement is correct?

A. Elly alone will bear the share of Will who is insolvent since he made the payment.
B. Elly can collect from Mike ₱15,000
C. Elly can collect from Mike ₱10,000
D. Elly can demand a refund of ₱10,000 from Dustin pertaining to Will's share since
Will is insolvent.

MERCADO, ANGELO T.

Timothee owes Armie Hammer P6,000.00 which is due on May 10, and another debt of
P12,000.00 which is due on May 20. Both debts are unsecured and non-interest bearing
and are already due. Timothee, however, has only P3,000.00 which he gives to Armie
Hammer without informing the latter as to which debt the payment shall apply. Armie
Hammer also did not indicate on the receipt he issued to Timothee to which of the two
debts shall apply. In this case:

A. The payment of P3,000.00 shall be applied to the debt due on May 10 because it
was the first to become due.
B. The payment of P3,000.00 shall be applied to the debt due on May 20 because it
is of greater amount.
C. Payment cannot be applied to two debts because it is incomplete.
D. The payment of P3,000.00 shall be applied proportionately in the amount of
P1,000.00 to the debt due on May 10, and P2,000.00 to the debt due on May
20.

PENTINIO, ANGEL M.
These statements are presented to you:
I. There is no delay in obligations not to do.
II. Delay is applicable only to the debtor, never to the creditor.
In your evaluation of the foregoing statements:
 OBLIGATION
A. Both statements are true.
B. Both statements are false.
C. Only Statement I is true.
D. Only Statement II is true.

RAMOS, YSABLE H.
On June 12, 2018, Mark and Ryan agreed that Mark would deliver a specific agricultural
land to Ryan on October 1, 2018. From June 12 to September 30, 2018 Mark harvested
corns from the land worth P18,000.00. On October 1, 2018 Mark actually delivered the
land to Ryan. During that time, there were unharvested crops valued P10,000.00 that
grew beginning October 1, 2018. Ryan had a personal right against Mark for the
delivery of the land and its fruits beginning on:
a. June 12, 2018
b. October 1, 2018
c. September 30, 2018
d. June 13, 2018

RESTITUTO, EVE JEREMY Q.

Joyce lent Anne, P16,500. Anne offered to give her bracelet, necklace or ring as
payment of the debt a week due from the due date of the original obligation. Joyce
agreed to it. One day before Anne has to repay her debt, the bracelet that she offered
as payment, accidentally, got flushed down the drainage because she was wearing it
whilst was washing the dishes. Therefore:

A. Anne's new obligation is a facultative obligation

B. Joyce may claim one of the remaining objects and has a right to damages or can
claim the equivalent price of the lost ring from Anne and has a right to damages

C. Anne does not need to pay the damages to Joyce for losing the ring even
though it got lost due to her own fault

D. Anne's obligation is now extinguished

SAGARINO, SANDRA F.
Tyler obliges himself to give Kinsey a house and lot if Kinsey will marry Scot before
Kinsey reaches the age of 30.
I. Tyler is liable if Kinsey marries Scot before she reaches the age of 30.
II. Tyler is liable if Kinsey marries Scot at the age of 30.
 OBLIGATION
III. Tyler is still liable if Kinsey dies at the age of 29 because the time specified has not
yet expired.

Which statement/s is/are correct?

A. I only
B. I and II
C. II and III
D. I, II and III

VILLADIEGO, JIZELLE J.
Lior is obliged to deliver 50 sacks of "Dinorado" rice to Dominic. The parties agreed that
should Lior fail to perform his obligation as stipulated, Lior will pay a penalty of PHP
11,000. On due date, Lior made a delivery of 50 sacks of rice but each sack contained a
mixture of "Dinorado" rice and another variety of lower quality. Dominic discovered the
fraud.

A. Dominic may demand the payment of damages in addition to the stipulated

penalty only if Lior refuses to pay the penalty.
B. Dominic may demand the payment of damages in addition to the stipulated
penalty only if there was a stipulation with respect to damages.
C. Dominic may demand the payment of the stipulated penalty as well as
damages although there was no stipulation on the latter.
D. Dominic may demand the payment of the stipulated penalty only.

MTQ 01- OBLICON

 OBLIGATION
Aguila, Jan Daryll

Fraud exist in three of the following. Which is the exception?

a. When through the insidious words or machinations of one of the contracting parties,
the machinations of one of the contracting parties, the other is induces to enter into
contract which, without them, he would not have agreed to.
b. When there is failure to disclose facts, when there is a duty to reveal them, as when
the parties are bound by confidential relations
c. When there is an expression of an opinion by an expert which turned out to be wrong,
and the other party relied upon such expert knowledge.
d. When the misrepresentation refers to the usual exaggerations in trade and other
party had an opportunity to know the facts.

MTQ - 02 Oblicon
ANDAL, VERNADETTE

Dread borrowed P500,000 from Cedrik. Dread died without having paid his loan
obligation to Cedrik. He left Sherwin, his son and heir properties worth P400,000.
A. Sherwin is liable to Cedrik for P500,000.
B.Sherwin is liable to Cedrik for P400,000.
C.Sherwin is liable to Cedrik for P100,000.
D. Sherwin is not liable at all because he should not made to shoulder the obligation of
his father.

MTQ 03 –OBLICON
AREVALO, MICHAEL

Tweng borrowed from Zaito P10,000,000 with Anigma as guarantor. The guaranty was
made orally. If Tweng cannot pay, what will happen to the guaranty?
A. The guaranty is invalid but Zaito can threaten Anigma to pay.
B. The guaranty can be enforced and can only collect half the amount.
C. The guaranty cannot be enforced.
D. The guaranty is can be enforced for the full amount of the debt

MTQ 04 –OBLICON
CABANA, CINDY
 OBLIGATION
Danny is obliged to deliver a specific Toyota car to Jerome. The parties agreed that
should Danny so desire, he may deliver his only Lancer car to Jerome as a substitute.
Before Danny could make any substitution, the Lancer car was damaged beyond repair
through the fault of Danny.
a. Danny's obligation to deliver the Toyota car is extinguished.
b. Danny is obliged to pay damages to Jerome for the loss of the Lancer car.
c. Danny is still obliged to deliver the Toyota car to Jerome on due date.
d. Danny is obliged to get another Lancer car as a substitute.

MTQ- 05 OBLIGATION
CAPINDING, DOMINIQUE

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

MTQ 7 – OBLICON
CATONER, COREEN

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

MTQ 08 – OBLICON
DE GUZMAN, CHARLENE

In an alternative obligation, what will happen if all the things/objects are lost through the
debtor’s fault before the choice is communicated if the right of choice is with the debtor?
A. The debtor shall pay the value of all the things that were lost.
B. The debtor shall pay for the damages only.
C. The debtor shall pay for the value of the last thing that was lost plus damages.
D. The debtor will pay nothing for he has the right of choice.

MTQ 09 – OBLICON
ECHEVARRIA, WINCEL

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

MTQ 10 – OBLICON
FERRER, JULLIE

Michael, Johnydel and Alfred are obliged to give Jaja, Wendy, Bea, Vanessa and
Jennelyn P30,000.
A. Jaja may collect P6,000 from Michael.
B. Jaja may collect P10,000 from Johnydel.
C. Jaja may collect P4,000 from Alfred.
D. Jaja may collect P2,000 from Michael.
 OBLIGATION

MTQ 11 – OBLICON
FORMAREJO, CHRISTINE

On March 31 2020 (birthday of Christine) Bretman Rock is obliged to deliver his

telescope at 10 cloverfield were she will use it for star gazing.During his way to the
location his truck was struck by lightning unfortunately the telescope was broken into
pieces.What will happen to Bretman Rock's obligation?
A.The obligation of Bretman Rock will be extinguished due to a fortuitous event the
lightning and he will not be liable for damages nor interest to Christine.
B.The obligation of Bretman Rock will be extinguished due to a fortuitous event the
lightning and he will not be liable for damages but mus pay interest to Christine.
C.The obligation of Bretman Rock will be extinguished due to a fortuitous event the
lightning and he will be liable for damages and interest to Christine.
D.The obligation of Bretman Rock will be extinguished due to a fortuitous event the
lightning and he will not be liable for interest but must pay damages to Christine.

MTQ 12 – OBLICON
GARAY, STEPHANIE

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

MTQ 13 – OBLICON
 OBLIGATION
GARCIA, JOHNYDEL

On January 12, 2018, Naruto obliged himself to give Sasuke P90,000 if Sasuke will
marry Sakura on or before December 31, 2018. The condition of the obligation is a:
A. Positive Condition
B. Negative Condition
C. Joint Condition
D. Impossible Condition

MTQ 14-OBLICON
GARCIA, MARIELLE

One of the following condition is void obligation:

A. Gian is obliged to give Ella 20,000.00 if ella does not swim in the pacific ocean
B. Gian is obliged to give Ella 20,000 if Gian goes to Paris
C. Gian is obliged to give Ella 20,000 if Ella goes to Manila
D. Gian is obliged to give Ella 20,000 if Gian wins the Raffle draw on a ticket that had
already been purchased.

MTQ 15 OBLIGATION
GIRON, JAN ALFRED

Philip Salvador, Cesar Montano and Robin Padilla executed the following promissiory
note:
" I promise to pay Mocha Uson or order the sum of 90,000 on January 14, 2021.
(Sgd.) Philip Salvador
(Sgd.) Cesar Montano
(Sgd.) Robin Padilla"
On January 14, 2021, Mocha Uson can collect from Philip Salvador:
a. 30,000
b. 90,000
c. 90,000 plus damage and interest
d. Nothing, because the note is void since it says I promise but was signed by three
persons.
 OBLIGATION

MTQ 16 – OBLICON
GO, STEFALIE

Aila, Bryan, Candy, and Dillan, solidary debtors are obliged to give Veronica, Wally,
Xyrine, Yuna, and Zaijan, joint creditors, P20,000.00.
A. Veronica may collect from Candy P20,000.00.
B. Veronica may collect from Candy P4,000.00.
C. Veronica may collect from Candy P5,000.00.
D. Veronica may collect from Candy P1.000.00.

MTQ 17- OBLICON

MAGSOMBOL, RHEALYN

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

MTQ - 18 OBLICON
MARTINEZ, CHRISTINE

Patrick sold his only car for P 1,000,000.00 to Ivan. Unknown to Patrick, Ivan bought the
car from him so that he could use the car for the delivery of illegal drugs. What is the
status of the sale of the car by Patrick to Ivan?
 OBLIGATION
A. The sale is void because the motive of Ivan is illegal.
B. The sale is valid because the illegality of the motive of the parties to the contract
does not have any effect on its validity.
C. The sale is voidable because of the failure of Ivan to disclose his motive to Patrick.
D. The sale is rescissible at the instance of Patrick because he would be damaged by
the illegal motive of Ivan.

MTQ 19- OBLICON

MATIRA, VANESSA

Tanya Israni is a new scholar. As a rule, a scholar is bound to pay only 500 pesos but
she paid 7,500 pesos by mistake. The university has the obligation to return the
payment of 7,000. This is an example of _____________.
a. negotiorum gestio
b. dacion en pago
c. solutio indebiti
d. mora accipiendi

MTQ 20 – OBLICON
MIGUEL, KRISTELLE DAINE

Justin borrowed P50,000 from Mary Joy. On due date, Justin did not have any money to
pay the debt so he proposed to Mary Joy that the latter accept a ring to settle the debt.
Mary Joy accepted the proposal and received the ring. Immediately after receiving the
ring, Mary Joy sold it to Joshua. Justin's obligation to give P50,000 to Mary Joy is
extinguished by:
A. Payment by cession
B. Dacion en pago
C. Application of payment
D. Consignation
MTQ 21 – OBLICON
OBAL, JENNELYN

Elmo is obliged to give Bert, either a ring worth P5,000; or bracelet worth P4,500; or a
watch worth P4,000. All the objects were lost due to Elmo's fault in the order stated.
A. Elmo's obligation is extinguished.
B. Elmo's obligation is to pay the value of the ring plus damages.
C. Bert's right is to demand the value of any of the objects plus damages.
D. Elmo's obligation is to pay the value of the watch plus damages.
 OBLIGATION
MTQ 22- OBLICON
PAGANA, FIONALYN

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

MTQ - 23 OBLICON
ROCES, JOANN KRISTINE MAE

The following characteristics of a facultative obligation, except:

A. Only one thing is principally due
B. The right of choice cannot be given to the creditor.
C. The loss or deterioration of the thing intended as a substitute before substitution,
through the negligence of the obligor, render him liable.
D. If the principal is void, the debtor is not obliged to give the substitute.

MTQ 24 – OBLICON
ROXAS, KYLA

Giani obliged himself to give 10 grams of shabu to Marc. Later, the parties agreed that
Giani would instead give to Marc 10 sacks of rice. Is the novation valid?
A. Yes, the novation is valid because there was an agreement between the parties to
modify the obligation.
B. Yes, because the new obligation is valid.
C. No, because the parties can no longer change the object after it has been agreed
upon.
D. No, because the original obligation is void.
 OBLIGATION

MTQ 25 – OBLICON
SALAPARE, CHARLENE

Elsa obliged herself to deliver Anna 15 bottles of wine, of a particular brand.

Subsequently, Elsa delivered 15 bottles knowing that they contain cheaper wine. Is Elsa
guilty for fraud through her act?
A. Yes, because she knows that the bottles contain cheaper wine.
B. No, because she did not tell Anna about the cheaper wine.
C. Yes, because she use other drinks than wine.
D. No, because Anna is her sister and she did not want to deceived her sister.

MTQ 26 – Oblicon
SALVADOR, PATRICK

Lee obliged himself to give a twenty (20) Philippine Eagle to Salvador to be put in his
farm. He has the plan to reproduce the eagle then be sold at the black market. Later,
the parties agreed that Lee would instead give to Salvador a ten (10) rooster then
reproduce it or sell the egg on the public market. Which of the following statements is
correct?
A. The new obligation is only voidable because Lee had not performed the original
obligation at the time of the novation. Accordingly, the new obligation is binding and
Salvador may demand the delivery of ten roosterfrom Salvador until the new obligation
is annulled by a proper action in court.
B. The novation is void because the original obligation is void. Hence. Salvador cannot
demand the delivery of ten (10) roosters from Lee.
C. The novation is valid because the new obligation is valid. Hence, C can demand the
delivery of ten roosters from Salvador.
D. The original obligation although void is validated by the new obligation. Hence,
Salvador can demand the delivery of ten roosters from Salvador.

MTQ 27- OBLICON

 OBLIGATION
SARDONA, RONALD

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

MTQ 28 – OBLICON
SOMBILLA, JOSH

Dadi owes Casi P10,000 with Gari as guarantor, Casi, on the other hand, owes Dadi,
P8,000. Both debts are already due but Dadi insolvent. In this case -
A. Casi may collect from Gari P10,000.
B. Casi may collect from Gari P2,000 because a guarantor can set up compensation as
regards what the creditor owes the principal debtor.
C. Casi may collect nothing from Gari because Dadi is insolvent.
D. Casi may collect P8,000 from Gari.

ABUSMAN, JOHN KENNETH B.

 OBLIGATION
The following instruments are presented to you for evaluation:

I. “Pay to the order of Divine P50, 000.00 in goods which are displayed at your store.”

II. “Pay to the order of Divine P50, 000.00 or deliver to him a computed of the same
value at his option.”

Assuming all the other requisites of negotiability are present:

A. Both instruments are negotiable

B. Both instruments are not negotiable
C. Instrument I is negotiable, instrument II is not negotiable
D. Instrument I is not negotiable, instrument II is negotiable
AGUILAR, ANNE JOHNETTE V.

Howard brought his wristwatch to Francis for repair. Francis has the right to retain the
wristwatch by way of legal pledge until Howard has paid him for the repair work he has
undertaken.

This situation above refers to what example of legal pledge?

A. Possessory lien by a possessor in good faith

B. Possessory lien of worker
C. Depositary’s right of retention
D. All of the above
ANILAO, ELIJAH JOYCE M

A. Ian made a Promissory note “I promise to pay Mark or order P10, 000. sdg Ian.
Mark however lost the instrument. Andrew found it and simulated the signature of
Mark and negotiated the instrument to Richard. Richard negotiated it to Claire, a
holder in due course. Who are liable to the holder?

A. Andrew
B. Andrew and Richard
C. Mark and Richard
D. Ian and Mark

AQUINO, ERIKA JOY L.

 OBLIGATION
Ginny executes a promissory note for P20,000 indicating therein that the maker is Maan
and that it is payable to the order of Ginny. Thereafter, she forges the signature of Maan
and indorses the note to A, A to B, B to C and C to Sheryll, holder. Based on the
foregoing date, which of the following statement is incorrect?
A. Sheryll can collect from Maan if Sheryll is a holder in due course.
B. Sheryll cannot collect from Maan whether Sheryll is a holder in due course or not.
C. Sheryll can collect from A, B or C whether Sheryll is a holder in due course or not.
D. Sheryll can collect from Ginny whether Sheryll is a holder in due course or not.
ARANILLA, CAREN JOY D.
An instrument to be negotiable must be payable at a fixed or determinable future time.
Which of the following does not comply with the said requisite?
a. "I promise to pay P or order on Christmas day 2 years from now "
b. "I promise to pay P or order in the death of X."
c. "I promise to pay P or order 10 days before the death of X."
d. "I promise to pay P or oder before Valentine's Day next year."
BATOCABE, CLEO NOREEN E.
X issued a promissory note payable to Z or order for 10,000. Z negotiated the note to A.
A indorsed the note to B, which reads "Pay to B without recourse". Which of the
following is true?

A) B can no longer negotiate the note further.

B) If B negotiates the note to C, C can hold Z, A and B are still liable since he can
trace his title through their indorsements.
C) A is still liable on the note in case of breach of warranty of a qualified
indorser.
D) B is treated as a mere assignee.
DAVILA, JOHN BRAIN A.

Which of the following instrument/s below is/are examples of restrictive indorsement?

I. An instrument stating, “I promise to pay Mavs and to no other person the sum
of P50,000”
II. The instrument made by Masha that contains, “to pay Mariel in trust for
Cheska”
III. The instrument I issued stating, “To pay Joy for my own use a sum of
P100,000”
A. I only
B. I and II
C. All of the above
D. None of the above
 OBLIGATION

DIALA, MARY JOY L.

An instrument reads as follows:

March 07, 2020

I promise to pay to the order of Majoy Lusterio the sum of Php500,000 if she places first
in the May 2020 CPA Examination.

(Sgd.) Mikaela Diala

A. The instrument is valid and negotiable.

B. The instrument is valid but not negotiable.
C. The instrument is invalid but negotiable.
D. The instrument is invalid and not negotiable.
DIMAYUGA, KRISTINE NICOLE V.
Consider these two statements:

I. An instrument originally payable to order may be converted into a bearer instrument.

II. An instrument originally payable to bearer may be converted into an order instrument.

In your evaluation of the foregoing statements:

A. Both statements are true.

B. Both statements are false

C. Statement I is true; Statement II is false

D. Statement I is false; Statement II is true

GALVEZ, NIÑA CHRISTINE M.

Which of the following is not a restrictive indorsement?

A. Pay to X only
B. Pay to B in trust for Z
C. Pay to M for collection
D. Pay to A without recourse
 OBLIGATION
GARBIDA, JANE CARLA C.
The following instruments are negotiable except;

A. Pay to the order of Watzhan Bakradi the sum of P10 000 out of my money I
gave you for safekeeping.
(Sgd.) Jane
To : Jay
B. Pay to the order of Watzhan Bakradi the sum of P10 000 and reimburse yourself
out of the money I gave you for safekeeping.
(Sgd.) Jane
To : Jay
C. Pay to the order of Watzhan Bakradi the sum of P10 000 and thereafter charge
my acount
(Sgd.) Jane
To : Jay
D. Pay to the order of Watzhan Bakradi the sum of P10 000 and reimburse out of
the proceeds of my loan from PNB.
(Sgd.) Jane
To : Jay
The correct answer is

A. Pay to the order of Watzhan Bakradi the sum of P10 000 out of my money I gave you
for safekeeping.

(Sgd.) Jane
To : Jay
HUERTAZUELA, ARA B.

Vincent signs a check with the name of the payee and the amount in blank keeps the
check in his safe. Leo, his bestfriend, learns of the check and steals it. He places the
amount of P20,000 on the check and his name as the payee. He thereafter indorses the
check to A, then A to B, B to C and C to H, holder.

I. H can enforces the check against Vincent?

II. H can enforces the check againts A,B and C
Which statement is correct?

A. I only
B. I and II
C. II only
D. None of the above
 OBLIGATION
LINGCORAN, JAIRA KYLA M.
Which of the following renders an instrument non-negotiable?

A. The promise or order is to pay the amount of the instrument out of a

particular fund.
B. The promise or order to pay is coupled with a statement of the transaction that
gave rise to the transaction.
C. The sum payable is to be paid with costs if collection or an attorney’s fee in case
payment is not made at maturity.
D. The instrument contains a provision authorizing the sale of collateral securities in
case the instrument is not paid at maturity.

MANALO, FRANCIES NICOLE C.

Suppose Monica makes a note for P10,000 with the name of the payee in blank and
keeps it in her drawer. Phoebe steals the note and inserts her name as payee and then
indorses the note to Chandler, Chandler to Ross, Ross to Joey, and Joey to Rachel, a
holder in due course. Which of the following statements is incorrect?

A. Rachel may enforce payment of the check against Monica if Rachel is a

holder in due course.
B. Rachel may enforce payment of the check against Phoebe whether Rachel is a
holder in due course or not.
C. Rachel may enforce payment of the check against Chandler, Ross and Joey
whether Rachel is a holder in due course or not.
D. Rachel may not enforce payment of the check against Monica whether Rachel is
a holder in due course or not.

MARAÑO, DONITA MAE P.

Kaye makes a note payable to the order of Jenny in the amount of P 100,000.00. Jenny
indorses the note to Amber as follows " Pay to Amber if she passes the 2020 CPA
Licensure Examination." Which of the following statements is correct?

A. Kaye cannot be compelled to pay even if the condition is fulfilled because the
conditional indorsement renders the instrument non-negotiable.

B. Kaye may pay Amber even if the condition has not been fulfilled. The fulfillment of the
condition becomes immaterial and Amber becomes the absolute owner of the proceeds
of the note.

C. Kaye must wait for the condition to be fulfilled before she can pay Amber.
 OBLIGATION
D. Kaye may pay Amber even if the condition has not been fulfilled but Amber has
to hold the proceeds subject to the rights of Jenny.

MERCADO, ANGELO T.

Statement No. 1: An order or promise to pay out of a particular fund is not unconditional.

Statement No. 2: An order or promise to pay is unconditional though coupled with an

indication of particular fund of which reimbursement is to be made, or particular account
to be debited with the amount.

A. 1st statement is true, 2nd statement is false.

B. 1st statement is false, 2nd statement is true.

C. Both statements are true.

D. Both statements are false. 

PENTINIO, ANGEL M.
A holder is a holder in due course if he has taken the instrument complete and regular
on its face and three of the following conditions, except:
A. That he became the holder of the instrument before it was overdue and without
notice that it had been previously dishonored if such was the fact.
B. That he took it in good faith and for value.
C. That there is no fraud or illegality affecting the instrument.
D. That at the time it was negotiated to him, he had no notice of any infirmity in the
instrument or defect in the title of the person negotiating the same.

RAMOS, YSABLE H

Which of the following requisites of negotiability does not apply to a promissory note?
A. It must be in writing and signed by the maker or drawer
B. Must contain an unconditional promise or order to pay a sum certain
money
C. It must be payable to order or to bearer
D. Where the instrument is addressed to a drawee, he must be named
or otherwise indicated therein with reasonable certainty.
 OBLIGATION

RESTITUTO, EVE JEREMY Q.

I. Where the sum payable is expressed in words and also in figures and there is a
discrepancy between the two, the sum denoted by the words is the sum payable.

II. Where there is discrepancy between the written and printed provisions of the
instrument, the printed provisions prevail.

A. Both statements are true

B. Both statements are false
C. Statement I is true; Statement II is false
D. Statement I is false; Statement II is true

SAGARINO, SANDRA F.
On August 1, 2020 Rajan issued an undated promissory note payable to the order of
Kala "60 days after date." While in her possession, Kala inserted "July 1, 2020" as the
date of issue of the note, instead of August 1, 2020, the actual date of issue. Kala then
indorsed the note to Rajan (who was not aware of the insertion of the wrong date), and
Rajan to Wolfie, a holder in due course. When may Wolfie enforce payment of the
instrument against Rajan?
A. August 30, 2020
B. September 30, 2020
C. Either on August 30, 2020 or September 30, 2020 at his option.
D. At any time after issue since the instrument becomes a demand instrument.

VILLADIEGO, JIZELLE J.

“I promise to pay Meyer or his order the sum of P15, 000 upon the death of his mother.’’
This is an instrument payable:

a. on demand
b. at a determinable future time
c. upon the fulfillment of a condition
d. at an indefinite time, hence, non-negotiable.

MTQ 01 - NEGOTIABLE INSTRUMENT

AGUILA, JAN DARYLL

Jan executed a note payable to the order Daryl. Daryl indorsed the note to Ally, Ally to
Sandra (qualified indorsement), Sandra to Lloyd(by general indorsement), and Lloyd(by
general indorsement), to Tantan, a holder in due course. Later, it was discovered that
Daryl was a minor. None except Daryl, knew that he was a minor. Who aside from P,
may avail himself of the minority of P as a defense?
 OBLIGATION
a. Jan, maker.
b. Ally, qualified indorser.
c. Sandra, general indorser.
d. None, only Daryl may avail himself of his minority as a defense.

MTQ - 02 Negotiable Instruments

ANDAL, VERNADETTE

These statements are presented to you:

I. A Bill may be accepted although it is already overdue.
II. A bill cannot be accepted after it has benn previously dishonored by a refusal to
accept, or by non-payment.
A. Both statements are true.
B. Both statements are false.
C. Only statement I is true.
D. Only statement II is true.

MTQ- 03 Negotiable Instruments

AREVALO, MICHAEL

Which of the following requisites is one of the requisites of a negotiable instrument?

A. Where the instrument is addressed to a drawee, he must be named or otherwise
indicated therein with reasonable certainty.
B. Where the instrument should specify the location it is made
C. Must have indefinite time.
D. Must contain an unconditional gratitude to order or drawer

MTQ 04- NEGOTIABLE INSTRUMENT

CABANA, CINDY

Melay makes a promissory note payable to bearer and delivers the same to Paulo, who
negotiates it to Ara by delivery. If the note is dishonored in the hands of Ara due to the
insolvency of Melay, can Ara recover from Paulo?
a. Yes. By indorsing the instrument to Ara, Paulo warrants payment of the instrument.
b. No. Because Melay, as the maker, is the one primary liable.
c. Yes. Because if Melay is insolvent, Paulo is the one secondary liable.
 OBLIGATION
d. No. By indorsing the instrument to Ara, Paulo does not warrant the solvency of
Melay.

MTQ- 05 NEGOTIABLE INSTRUMENTS

CAPINDING, DOMINIQUE

Ron makes a promissory note payable to the order of Patricia and delivers the same to
Patricia. Patricia indorses the note to Alex who keeps it in her drawer. Ford steals the
note and negotiates the same to Baron by forging Alex's signature. Thereafter, Baron
negotiates the note to Calli, Calli to Devon, Devon to Heather, a holder in due course.
Based on the foregoing information, which of the following statements is true?
a. Heather can hold Ron and Patricia liable because they became bound under the
instrument before the forgery.
b. Heather cannot hold Baron, Calli and Devon liable because they have no
participation whatsoever in the commission of the forgery.
c. Heather can enforce the instrumeny only against Ford, the forger, since he is the
perpetrator of the forgery.
d. Heather can enforce instrument against Ford, Baron, Calli and Devon, but not against
Ron, Patricia and Alex.

MTQ 7 – NEGO
CATONER, COREEN

One of the following can set up the defense of forgery in an instrument payable to order.
Who is it?
A. an endorser, if the maker’s signature is forged
B. the acceptor, if the drawer’s signature is forged
C. a person negotiating by mere delivery if a prior party’s signature is forged
D. the maker, if an endorser’s signature is forged

MTQ 08 – NEGO
DE GUZMAN, CHARLENE

Which of the following is not an example of an instrument payable on demand?

I. “I promise to pay C P5,000.00 on demand.”
II. “Pay to C P5,000.00 at sight.”
III. “Pat to C P5,000.00 upon presentation.”
A. I and II
B. I and III
 OBLIGATION
C. III only
D. None of the above

MTQ 09 – NEGO
ECHEVARRIA, WINCEL

Kae draws a check for P100,000.00 payable to the order of Larra and against her
deposit of P2,000,000.00 at XYZ Bank. The check is indorsed by Larra to Kerstine,
holder. Kerstine delays the presentment of the check to XYZ Bank. By the time he
presents it for payment, XYZ Bank is already insolvent. Kae is able to recover
P500,000.00 from the Philippine Deposit Insurance Corporation on her deposit. Will Kae
still be liable to Kerstine?
A.Yes, for P100,000.00.
B.Yes, for P75,000.00.
C.Yes, for P25,000.00.
D.No, Kae will no longer be liable because Kerstine’s delay in presenting the check for
payment totally discharged her from liability on the check.
MTQ 10 – NEGO
FERRER, JULLIE

When is a negotiable instrument payable on demand?

A. Where it is expressed to be payable on demand, on sight, or on presentation.
B. Where it is drawn payable to the order of a specified person or to him or his order. It
may be drawn payable to the order.
C. When the time of payment is left blank or unfilled.
D. Both A and C.

MTQ 11 – NEGO
FORMAREJO, CHRISTINE

In which of the following cases will make J a holder in due course:

A.If A steals from B, a note payable to bearer and negotiates it to J who has notice of
the theft.
B.If A assigns his note to B, B to D, D to C, C to J, a note payable to HAHA
C.If A steals from B, a note payable to bearer and negotiates it to J who does not have
notice of the theft.
D.If A indorse and deliver the note to D, D to C, C to J payable to the order of B.
 OBLIGATION

MTQ 12 - NEGOTIABLE INSTRUMENTS

GARAY, STEPHANIE

"I promise to pay Marco or his order the sum of P25,000,000 20 days after the death of
Xander.' This is an instrument payable:
A. at a determinable future time
B. on demand
C. upon the fulfillment of a condition
D. at an indefinite time, hence, non-negotiable

MTQ 13 – Nego
GARCIA, JOHNYDEL

The maker, by making the instrument, has the following liabilities, except:
A. The admission of the right of the holder to enforce payment of the instrument.
B. The engagement to pay the instrument according to its tenor
C. The admission of the existence of the payee.
D. The admission of the capacity of the payee to indorse the instrument.

MTQ 14- NEGOTIABLE INSTRUMENTS

GARCIA, MARIELLE

Jaime makes a note payable to the order of Jacob in the amount of Php 10,000. Jacob
indorses the note to Steven as follows "Pay to Steven if he passes the 2023 CPA Board
Examination"
A. Jaime must wait for the condition to be filfilled before he can pay Steven.
B. Jaime may pay Steven even if the condition has not been fulfilled but Steven has to
hold the proceeds subject to the rights of Jacob.
C. Jaime cannot be compelled to pay even if the condition is fulfilled because the
conditional endorsement renders the intrument non-negotiable.
D. Jaime may pay Steven if the condition has not been fulfilled. The fulfilment of the
condition becomes immaterial and Steven becomes the absolute owner of the proceeds
of the note.
 OBLIGATION
MTQ 15 - NEGOTIABLE INSTRUMENT
GIRON, JAN ALFRED

Which of the following is not a right of a holder in due course?

a. To hold the instrument free from defect of title of prior parties.

b. To hold the instrument free from personal defenses available to prior parties among
themselves.
c. To enforce payment of the instrument for the full amount thereof against all parties
liable thereon.
d. To hold the instrument free from real defenses available to the prior parties among
themselves.

MTQ 16 – NEGO
GO, STEFALIE

Stefalie approaches Kim Chui, an actress, and requested an autograph from her. The
actress willingly signed her name at the bottom right portion of the paper. After, Stefalie
printed the following: “I promise to pay Stefalie or his order P50,000.00.” on paper
signed by the actress. Thereafter, Stefalie negotiated the paper to Aila, Aila to Bryan
and Bryan to Harry, the holder. Aila, Bryan, and Harry knew nothing about how
apparent note came into being.
A. If he is a holder in due course. Harry can collect from Kim Chui.
B. Whether he is a holder in due course or not, Harry cannot collect to Kim Chui.
C. Whether he is a holder in due course or not, Harry cannot collect from Aila.
D. Whether he is a holder in due course or not, Harry cannot collect from Bryan.

MTQ 17- NEGOTIABLE INSTRUMENTS

MAGSOMBOL, RHEALYN

A party secondarily liable is discharged through any of the following, except by the:
a. Intentional cancellation of his signature by the holder
b. Discharge of a prior party
c. Release of the principal debtor
d. Extension of the time of payment which is assented to by such party secondarily
liable

MTQ - 18 Negotiable Instruments

MARTINEZ, CHRISTINE
 OBLIGATION
Under which conditions does a holder in due course take an instrument?
I. He took it in good faith and for value
II. He became the holder of it before it was overdue, and without notice that it has been
previously dishonored if such was the fact.
III. At the time it was negotiated to him, he had no notice of any infirmity in the
instrument or defect in the title of the person negotiating it.
A. I only
B. I and III only
C. None of the above
D. All of the above

MTQ 19- NEGOTIABLE INSTRUMENTS

MATIRA, VANESSA

Which of the following is NOT an instrument payable to bearer?

a. "Pay to bearer the sum of P8,000."
b. "Pay to the order of bearer the sum of P8,000."
c. "Pay to the order of Daragang Magayon the sum of P8,000."
d. A last indorsement payable to order is a blank indorsement.

MTQ 20 – NEGO
MIGUEL, KRISTELLE DAINE

Protest is required in the case of a:

A. Inland bill of exchange
B. Foreign promissory note
C. Foreign bill of exchange
D. Inland promissory note

MTQ 21 – NEGO
OBAL, JENNELYN

Krizzia issued a promissory note payable to the order of Vin for P100,000.00.
Thereafter, Vin indorsed the note to Beth. While the note is in the possession of Beth,
Mill stole it and negotiated it to Pia by forging the signature of Beth. Pia was not aware
of the forgery of Beth's signature. Pia then indorsed the note to Nica, a holder in due
course. The parties who may raise forgery as a defense are:
 OBLIGATION
A. Krizzia and Vin
B. Beth and Pia
C. Krizzia, Vin and Beth
D. None of the parties may raise forgery as a defense because Nica is a holder in due
course.

MTQ 22- NEGOTIABLE INSTRUMENTS

PAGANA, FIONALYN

Evren makes a note payable to the order of Cali. Cali specially indorses the note to
Ethan, Ethan specially indorses the note to Daemon, Daemon indorses the note in
blank and delivers it to Ross, Ross specially indorses the note to Adam, Adam indorses
the note to Taka, holder. Which of the following indorsements may Taka strike out?
A. The special indorsement of Cali to Ethan
B. The special indorsement of Ross to Adam
C. The blank indorsement of Daemon to Ross
D. The special indorsement of Adam to Taka

[Application] In this case, the indorsement of Ross to Adam is not necessary to Taka's
title by virtue of the blank indorsement of Daemon. Even if their indorsement are
cancelled, the note would become payable to bearer, meaning, it can be negotiated by
mere delivery.
[Conclusion] The other indorsements are necessary for Taka's title, therefore, the only
indorsement that can be struck out is the indorsement of Ross to Adam.

MTQ 23 – NEGO
ROCES, JOANN KRISTINE MAE

An instrument to be negotiable must be payable at a fixed or determinable future time.

Which of the following does not comply with the requisite?
A. "I promise to pay P or order on Christmas day 2 years from now"
B. "I promise to pay P or order on the death of X"
C. "I promise to pay P or order 10 days before the death of X"
D. "I promise to pay P or order before Valentine's Day next year"
 OBLIGATION
MTQ 24 – NEGO
ROXAS, KYLA

A part secondarily liable is discharged through any of the following means, except by
the:
A. Intentional cancellation of his signature by the holder
B. Extension of the time of payment which is assented to by such party secondarily
liable.
C. Release of the principal debtor
D. Discharge of a prior party

MTQ 25 - NEGOTIABLE INSTRUMENT

SALAPARE, CHARLENE

It is an unconditional promise in writing made by one person to another, signed by the

maker, engaging to pay on demand, or at a fixed or determinable future time, a sum
certain in money to order or to bearer. What is it?
A. Bill of exchange
B. Check
C. Promissory note
D. Notice of dishonor

MTQ 26- Negotiable Instrument

SALVADOR, PATRICK

Which of the following does not belong to the group?

A. Bank Notes
B. Certificate of Deposits
C. Bill of Exchange
D. Postal Money Order

MTQ 27- NEGO

SARDONA, RONALD
 OBLIGATION
Which of the following is not negotiable for the reason it is not a payable at a
determinable future time?
A. One week after Mary passes the CPALE, I promise to pay to the order of Kyla,
P10,000. Sgd. Mallows.
B. Thirty days after the demand, drawer Z directs Drawee X to pay Y or order P10,000.
C. Ten days after the death of X, I promise to pay to the order of Y P10,000. Sgd. Z.
D. On or before Oct. 31, 1998, I promise to pay to the order of Y P10,000. Sgd. Z.

MTQ 28 - Negotiable Instruments

SOMBILLA, JOSH

Xayah signed a promissory note for P300,000 as maker and payable to bearer,
delivered to Betty in payment for Xayah's scheduled medical operation that will make
her tall. Later, Xayah was informed that it is impossible to make her tall. However, Betty
has already delivered the note to Harry upon the terms of payment of P100,000 and the
balance in a month. Harry received a notice of the defect. Which is true?
A. Harry can collect P300,000 because he is a holder in due course entitle to the full
amount of the instrument.
B. Harry must pay the balance before he can collect for the full amount.
C. Harry is a holder in due course to the extent of P100,000, the amount paid by him.
D. Harry cannot collect because of the failure or absence of consideration.