Since 1977

BUSINESS LAW ATTY.ONG/LOPEZ

BL.2801-Drill 2 - Obligation MAY 2020

1. Payment by third person are presumed for the benefit of the
creditor in the following cases, except:
a. Ratification c. Estoppel
b. Subrogation d. Determinacion
2. It is the gratuitous abandonment by the creditor of his right
against the debtor.
a. Abandonment c. Remission
b. Novation d. Dation en pago
3. Asiong borrowed P1 million from a bank, secured by a
mortgage on his land. Without his consent, his friend Boyong
paid the whole loan. Since Asiong benefited from the
payment, can Boyong compel the bank to subrogate him in its
right as mortgagee of Asiong's land? (2011 Bar)
a. No, but the bank can foreclose and pay Boyong back.
b. No, since Boyong paid for Asiong’s loan without his
approval.
c. Yes, since a change of creditor took place by novation
with the bank’s consent.
d. Yes, since it is but right that Boyong be able to get back
his money and, if not, to foreclose the mortgage in the
manner of the bank.
4. D owes C P50,000.00. Subsequently, D proposed to C that T
will assume his (D's) debt. C accepted the proposal of D.
Assume that on due date, T could not pay because of his
insolvency which was in fact subsisting but was not known to
D or of public knowledge at the time that D delegated his debt.
In this case –
a. C can revive D's debt because T's insolvency was already
existing at the time that D delegated his debt.
b. C can revive D's debt whether or not he (D) was aware of
T's insolvency since he (D) proposed the substitution.
c. C cannot hold D liable because his (D's) obligation was
extinguished when he was substituted by T
d. The novation is void because D did not take steps to
determine the solvency of T when he (D) delegated his
debt.
5. Personal novation:
a. Substitution of debtor
b. Subrogation of a third person in the place of the creditor
c. Both of (a) and (b)
d. None of the above
6. Dolores borrowed P15,000.00 from Consuelo. On due date,
Dolores was not able to pay but she promised to give Consuelo
a specific ring, a specific bracelet, or a specific necklace, in
payment of the debt. Consuelo accepted the offer of Dolores.
How was the obligation of Dolores to pay P15,000.00
extinguished?
a. By compensation. c. By confusion.
b. By novation d. By condonation.
7. Which of the following is not is not a mode of extinguishing
an obligation?
a. Loss of specific things c. Confusion
b. Condonation d. Quasi delict
8. A thing is considered lost when it:
a. Perishes
b. Goes out of commerce
c. Stolen or robbed
d. All of the above
9. Which of the conclusion is correct?
a. D who indebted to C in the amount of P100,000 conveys
to C ownership of his jeep which later on was found out to
have a value only of P70,000. D still owes C P30,000.
b. D who is indebted to C in the amount of P100,000,
conveys to C the ownership of his jeep with an agreed
appraisal value of P150,000. C is now obligated to Pay D
P50,000.
c. F, a father, is indebted to C, a creditor, in the amount of
P15,000,000. F dies leaving to his only son S a house and
lot valued at P10,000,000. If S voluntarily pays C
P15,000,000 he can recover the excess payment of
P5,000,000.
d. S offered the sale of a house and lot to B for P10,000,000
giving to the latter an option of 60 days. B paid S P10,000
as option money. There is already as between S and B a
perfected contract of sale.
10. OE is obliged to give OR his 2019 Mitsubishi, 4 door sedan
Lancer with plate number NBA 123 on September 30, 2019.
On October 10, 2019, OE had not yet deliver the car which
was totally destroyed by an earthquake on such date. Is OE
still liable?
a. No. The obligation is extinguished. The specific thing was
lost due to fortuitous event and no demand or delivery was
made by OR.
b. Yes. OE is in legal delay. OR can claim damages.
c. No. Even OE is already in default and can plead
impossibility of performance.
d. Yes. OR can instead demand for another car of equivalent
value from OE.
11. Bulacan borrowed from Bruho Bank P2,000,000 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
on the date of maturity. On due date, Bulacan must pay Bruho
Bank:
a. P2,000,000 c. P800,000
b. P5,000,000 d. P20,000,000
12. On December 23, 2019, Carlota, the owner of a sarisari store,
purchased several bags of "Yummy" candy worth P1,000.00
from Delisyus, an authorized dealer of the product. Carlota
tendered her payment to Delisyus consisting of 200 pieces of
P5.00 coins. In this case:
a. Delisyus may refuse to accept the payment and demand
that she be paid in bills.
b. Delisyus cannot refuse to accept the payment because
what Carlota was offering as payment is legal
tender.
c. Delisyus may consign the payment in court if Delisyus
refuses to accept it and his obligation is automatically
extinguished.
d. The tender made by Carlota was invalid because the
tendered amount is not legal tender.
13. Dada owes Cokey P150,000 payable on January 5, 2020. To
fulfill the obligation, Dada with the consent of Cokey, delivers
his only car on January 4, 2020 with agreed valuation of
P140,000 at around 8:00 pm to Cokey’s residence. Cokey
accepted the car but the same was destroyed by lightning after
one hour upon delivery. In this case:
a. Dada still owes Cokey the amount of P150,000
b. Dada still owes Cokey the amount of P10,000
c. Dada is no longer liable to Cokey because the obligation is
extinguished by fortuitous event.

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EXCEL PROFESSIONAL SERVICES, INC.
d. Dada Still owes Cokey P140,000 for the amount of the car
loss by lightning.
14. A thing is loss in the following cases. Which is the exception?
a. When the object is perishes
b. When the object disappear. 22.
c. When the object goes out of commerce
d. When the object is diminish its value
15. X borrowed money from a bank, secured by a mortgage on the
land of Y, his close friend. When the loan matured, Y offered
to pay the bank but it refused since Y was not the borrower. Is
the bank’s action correct? (2011 Bar)
a. Yes, since X, the true borrower, did not give his consent to 23.
Y’s offer to pay.
b. No, since anybody can discharge X’s obligation to his
benefit.
c. No, since Y, the owner of the collateral, has an interest in
the payment of the obligation.
d. Yes, since it was X who has an obligation to the bank.
16. Allan bought Billy’s property through Carlos, an agent
empowered with a special power of attorney (SPA) to sell the
same. When Allan was ready to pay as scheduled, Billy called, 24.
directing Allan to pay directly to him. On learning of this,
Carlos, Billy's agent, told Allan to pay through him as his SPA
provided and to protect his commission. Faced with two
claimants, Allan consigned the payment in court. Billy
protested, contending that the consignation is ineffective since
no tender of payment was made to him. Is he correct? (2011 25.
Bar)
a. No, since consignation without tender of payment is
allowed in the face of the conflicting claims on the
plaintiff.
b. Yes, as owner of the property sold, Billy can demand
payment directly to himself.
c. Yes, since Allan made no announcement of the tender.
d. Yes, a tender of payment is required for a valid
consignation. 26.
17. The delivery of a private document evidencing a credit, made
voluntarily by the creditor to the debtor even before the debt is
paid, extinguishes the obligation by:
a. Express remission c. Compensation
b. Implied remission d. Novation
18. Payment shall be made to, except:
a. Obligee 27.
b. Creditor’s assignee
c. Obligor
d. Executor of the deceased oblige.
19. Which of the following is not really a special payment?
a. Dation in payment
b. Tender of payment and consignation
c. Application for payment
d. Payment by cession
20. The debtor who cedes or assigns his property to his creditor in
payment of his debt shall be released from his obligation.
a. To the extent of the net proceeds of the thing leased.
b. To the extent allowed by the creditor
c. Only to the extent of the net proceed of the thing assigned
d. Totally extinguished under dation in payment
21. 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 28.
became insolvent and defaulted in his obligation. What is the
effect of the new debtor’s default upon the original debtor?
(2011 Bar)
a. The original debtor is freed of liability since novation took
place and this relieved him of his obligation.
b. The original debtor shall pay or perform the obligation
with recourse to the new debtor.
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c. The original debtor remains liable since he gave no
consent to the substitution.
d. The original debtor shall pay or perform 50% of the
obligation to avoid unjust enrichment on his part.
Three of the following are requisites of cession in payment.
Which is the exception?
a. One debtor and one creditor
b. Complete or partial insolvency
c. More than one debt
d. Abandonment of all debtor's property not exempt from
execution
Consignation alone extinguished obligation under the
following, except:
a. When the creditor is incapacity to received payment at the
time it is due.
b. When without just cause the creditor refuses to give
receipt.
c. When there are two or more persons claim the same right
to collect.
d. When the debt is already due and demandable.
To which of these modes of special payment is the law on
sales applicable?
a. Dacion en pago
b. Cession en pago
c. Tender of payment and consignation
d. Application of payment
Drago owes Carlo P50,000. Without the intention of being
reimbursed, Sandy paid Drago’s obligation and Carlo accepted
it. Drago did not accept Sandy’s generosity.
a. Drago’s obligation is totally extinguished.
b. Sandy may ask reimbursement from Drago P50,000.
c. Drago obligation to Carlo is extinguished but he may be
compelled to pay Sandy P50,000 whether or not Drago
accept the generosity of Sandy.
d. Sandy may recover from Carlo P50,000.
Which of the following is not a requisite of application for
payment?
a. There must be at least two debtor or creditor;
b. There must be at least two debt
c. The debt must be of the same kind
d. The payment of the debtor is not sufficient to cover all the
debt.
Toblerone is a lessee of Codsbury building. Under the lease
contract, Toblerone must pay the monthly rental of P25,000 to
Codsbury at the latter’s office within the first 5 days of the
month. On the sixth month of the lease, Toblerone went to
Codsbury’s office to pay the rental but he was told by Goya,
an employee to Codsbury, that the latter was confined at the
hospital. Goya told Toblerone that he could entrust payment to
him. Hershey, a son of Codsbury, who happen around,
however, demanded that Toblerone must pay to him claiming
that as Codsbury’s son, he was the one authorized to receive
the payment. Give where you do not know to whom you will
give your payment, which of the following modes of payment
would you avail yourself of if you were Toblerone?
a. Dacion en pago
b. Payment by cession
c. Consignation
d. Application of payment
When the obligation consists in the delivery of a generic thing
whose quality and circumstances have not been agreed upon:
a. The creditor can demand a thing of superior quality
b. The debtor can deliver of inferior quality
c. The Debtor can deliver of superior quality even against
the will of the creditor.
d. The purpose and other circumstances shall be taken into
consideration in determining the quality of the object to be
delivered.
BL.2801