Law on Obligation and Contracts

True? 1. If an obligation states that the debtors bind themselves jointly and severally, the obligation is
considered joint.

C 2. If the obligation is payable in foreign currency

a. the obligation is void.

b. the obligation is valid, but the stipulation is void.

c. the creditor can compel the debtor to pay in foreign currency as per agreement.

d. The stipulation and the obligation are void.

C 3. A sold his cow to B for P2,500. No date was stipulated for the delivery of the cow. While still in the
possession of A, the cow gave birth to a calf

a. A is entitled to the call because it was born before his obligation to deliver the cow arises

b. A is entitled to the calf as B has not paid the price.

c. B is entitled to the calf which was born after the perfection of the contract.

d. B in order to be entitled to the calf, should pay additional cost for the calf to be agreed upon by both

parties

E 4. Which of the following is not a special mode of payment (1 point)

a Dacion en pago

b. Payment by cession

c. Tender of payment and consignation

d. Consignation alone without the need of tender of payment in cases provided for by law

e None of the above

True 5. A lender can recover the principal of a loan in a usurious contract even if the contract is void as
to the interest.

False 6. The nullity of the penal clause carries with it that of the principal obligation.

False 7. In alternative obligation, the right of choice belongs to the creditor, unless it has been expressly
granted to the debtor.

True 8. As a rule, a creditor has a right to the fruits of the thing from the time the obligation to deliver it
arises.
 Law on Obligation and Contracts

B? 9. D owes C P10,000 payable on December 25. Later, D forced to sign a promissory note for P10,000
payable on December 25 If all the other requisites of compensation are present, are both debts
extinguished?

a Yes, under legal compensation

b. No, B's consent was obtained by force.

c. Yes, with the approval of the court

d. Not given

A 10 The delivery and transmission of ownership of thing by the debtor to the creditor as an accepted
equivalent performance of an obligation is called.

a Dacion en pago

b Payment by cession

c. Consignation

d. Remission

False 11. Negligence signifies the idea of delay in the fulfillment of an obligation

False 12. The indivisibility of an obligation necessarily implies solidarity.

True 13. Prestation is the object or subject matter of the obligation

False? 15. All rights acquired in virtue of an obligation are transmitted in the absence of any law or
stipulation to the contrary.

False 16. Payment made by a third person who does not intend to be reimbursed by the debtor is
deemed to be a donation which requires the debtor's consent of the debtor's consent is not given the
obligation is not extinguished.

True 17. When the fulfillment of the suspensive or resolutory condition depends upon the sole will of
the debtor, the conditional obligation shall be void

C? 18. S owns an oil painting. Being in need of money, S sold the painting to B for P1000. After the sale S
discovered that the painting was valuable and was worth P5,000.

a. S may rescind the contract on ground of lesion or inadequacy of cause.

b. S may annul the contract on ground of fraud.

c. S may annul the contract on ground of error.

d. B is entitled to the benefit of the contract because it is valid and binding.

D 19. Culpa aquiliana as distinguished from culpa contractual.

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a Proof of due diligence in the selection and supervision of employees is not available as a defense.

b. Proof of the contract and of its breach and of its breach is sufficient prima facie to warrant recovery

c. The negligence of the defendant is merely an incident in the performance of the obligation

d. The source of liability is the defendant's negligent act or omission itself.

False 20. D obliged himself to give C P1.000.000 if the latter would not kill X a third person. In this case,
both the condition as well as the obligation is void.

False 21. An example of debt that may be compensated is that arising from a deposit

D? 22 A pedestrian who was hit by a taxi and suffered physical injuries can bring an action based on
culpa aquiliana against the operator of the taxi.

A pedestrian who was injured because of the recklessness of a bus driver can bring an action of culpa
criminal against the driver but not the owner.

a No, Yes

b. Yes, No

c. No, No

d. Yes, Yes

True 23. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for
future fraud is void.

B 24. Daryl owes Cris P100 By mistake Daryl pays Cris P1000. Cris must return the P900. This is an
example of

a Negotiorum gestio

b. Solutio indebiti

c. Natural obligation

d. Quasi delict

False 25. Mora is a term used to denote delay or default in the performance of fulfillment of an
obligation Mora accipiendi is that delay or default which is attributable to both parties in reciprocal
obligations.

A 26. A juridical relation known as negotiorum gestio takes place.

a When a person voluntarily takes charge of another abandoned business or property without the
owner's consent

b. When something is received and there is no right to demand it and it was delivered through mistake.
 Law on Obligation and Contracts

c When a person is appointed by a court to take the property or business of another.

d. None of the above.

A 27. When there is a return of what was not lawfully required, there is:

a Solutio indebiti.

b. Negotiorum gestio.

c. Cession en pago.

d. None of the above.

B?? 28. Which of the following is not a conditional obligation?

a D to give P1,000, if C passes the examination

b. D to pay C P1,000, if C has the means.

c. D to give a horse if marries X.

d. None of the above

D 29. A person obliged to give something must preserve the object using a standard of care or diligence.
This standard of care or diligence may be.

a diligence provided by law.

b diligence provided by agreement of the parties

c. diligence of a good father of the family

d any of the above

True 30. The condition not to do an impossible thing shall render the obligation demandable at once.

False? 31. Payment made by the debtor to a third person who is not the creditor shall never extinguish
the obligation

True 32. Efficient cause is the legal or juridical tie which binds the parties to the obligation

False 33. D binds himself to pay C P10,000. The court in this case shall fix the period, since the parties
failed to fix the period

False 34. As a rule, the creditor has a right to the fruits of the thing from the time the obligation is
perfected.

D 35. Obligation may be modified by:

a Changing their object or principal conditions

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b. Substituting the person of the debtor.

c. Subrogating a third person in the rights of the creditor.

d All of the above

B? 36 Example No. 1 D owes C P 10,000 due on December 25. C owes D P6,000 due on December 25 D's
obligation is guaranteed by G On the due date, D is insolvent. C is liable to C for P10,000, he (C) cannot
set up compensation because he is not a principle debtor.

Example No. 2: D owes C P10,000 payable on December 25. Later, D, through intimidation was able to
make C sign a promissory note stating that is indebted to D for the same amount. In here, D cannot be
acquired to pay C P 10,000 because he (D) can set up compensation against C.

a Both examples are true

b. Both are false.

c. Only No 1 is true; No. 2 is false.

d Only No. 1 is false; No. 2 is true.

True 37. A person is obliged to deliver a determinate thing including its accession and accessories, even
though they may not have been mentioned in the agreement.

A 38. Statement No 1: “if the obligation does not fix a period, but from its nature and the circumstances,
it can be inferred that a period was intended, the court may fix the duration thereof. Once it is fixed by
the court, the parties cannot change the fixed date for performance.

Statement No. 2: "I will give you P10,000 as soon as possible." This is an obligation with a period for the
benefit of both the debtor and creditor

a Both are true

b. Both are false

c. No. 1 is true No. 2 is false.

D. No. 1 is false: No.2 is true.

C?? 39 Al has been missing for sometime leaving no one to manage his properties Bo and Cyrus jointly
took charge of the management thereof. However, due to the fault of Bo, the properties of Al were
damaged. The liability therefore to Al for damages shall be (1 point)

a. Only Bo shall be liable.

b. Both shall be jointly liable.

c. Both shall be solidarily liable.

d. They are not liable since Alis at fault for having abandoned his properties.
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False? 40 A natural obligation is a valid obligation

True 41. Whenever in an obligation a period is designated, it is presumed to have been established for
the benefit of both the creditor and the debtor

B 42 Statement No. 1; The concurrence of more than one creditor or more than one debtor in one and
the same obligation implies solidarity

Statement No. 2 In alternative obligations where the right of choice is exercised by the creditor consent
of the debtor as to the creditor's choice of which prestation to perform is necessary. (1 point)

a Both statements are true.

b. Both statements are false.

c. Statement No. 1 is true while statement No. 2 is false.

d. Statement No. 1 is false while statement No. 2 is true.

False 43. A is obliged by contract to deliver a specific car to B. A is not obliged to deliver the "jack" of the
car to B because the delivery of the jack is not mentioned in the contract

D 44. A wrong committed independent of a contract and with criminal intent (1 point)

a Quasi-contract

b. Culpa contractual

c. Cupa aquliana

d Culpa criminal

A 45. D owes C P200,000 but the debt had already prescribed. If D, knowing that it has prescribed,
nevertheless paid , he cannot later on get back what he voluntarily paid C This is an example of a

a Natural obligation

b. Moral obligation

c Civil obligation

d. Personal obligation

True 46. Without demand from the creditor, the debtor, even if he fails to perform the obligation on the
agreed date does not incur delay.

False 47. In order to be awarded damages, the creditor must prove negligence in breaches of contracts
through negligence, as the latter is a substantial incident of the obligation.

False 48. Solidarity cannot exist if the creditors and the debtors are not bound in the same manner and
by the same periods and conditions.
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False 49. D obliged himself to pay to the sum of P50,000 which he owes him when he (D) feels like it.
This kind of obligation is valid and legally enforceable

False 50. Responsibility arising from negligence or culpa in the performance of an obligation is
demandable. Culpa aquiliana is that fault or negligence which results from breach of contract.

True 51. An example of an obligation with a period is when A premises to pay B P10,000 one month
from the death of C.

D 52 Which of the following is an obligation with a period for the benefit of both the debtor and the
creditor?

a Payable if I like

b. Payable when you like

c. Payable on or before December 25, 2010

d Payable on December 24, 2010

D 53 Statement No. 1: When the prestation is negative and the debtor is precluded from doing an
impossible or unlawful condition, the entire obligation including the condition, is null and void.

Statement No. 2. in an obligation subject to a period, what is suspended is the birth of the obligation

a Both statements are true.

b. Both statement are false.

c. Statement No. 1 is true while statement No. 2 is false.

d. Statement No. 1 is false while statement No. 2 is true.

True 54. In obligations arising from law, the duty to deliver the fruits arises from the duty to deliver the
principal object.

False 55. In case an extraordinary inflation or deflation of the currency stipulated should supervene, the
value of the currency at the time of the maturity of the obligation shall be the basis of payment.

False? 56. A stipulation to pay a domestic obligation in foreign currency shall render it void but the
obligation remains to be valid

True 57. There is no delay in an obligation not to do something.

B/C?? 58. Statement No. 1: in culpa aquiliana negligence on the part of the debtor is a substantial issue
which must be proved by the creditor in order to be entitled to an award of damages

Statement No. 2: The highest standard of care that a person obliged to give something is that diligence
of a good father of a family
 Law on Obligation and Contracts

a Both statements are true.

b. Both statements are false.

c Statement No. 1 is true while statement No. 2 is false.

d. Statement No. 2 is false while statement No. 2 is true.

True 59. The obligation to give a determinate thing includes that of delivering all the accessions and
accessories, even though they may not have been mentioned in the agreement

True 60. A solidary creditor cannot assign his rights, without the consent of the others.

False 61. In novation by way of expromission there can be a revival of the original debtor's obligation
should the new debtor turns out to be insolvent and such is of public knowledge

B 62 Example No. 1 D obliged himself to give P10,000 However, the day before the obligation falls due,
D's apartment was completely gutted by accidental fire. There is no question that the money was also
razed by fire. The obligation of D is totally extinguished because of fortuitous event.

Example No. 2: D obliged himself to pay C P 10,000 with 6% interest. On the due date, tendered P10,000
with a promise to pay the P600 interest the day after If C refused to accept, he can be compelled to
accept the tendered payment because the obligation is divisible.

a Both are true

b. Both are false

c. No. 1 is true No. 2 is false.

d. No. 1 is false No. 2 is true

A? 63. Statement No. 1: D obliged himself to give C a specific car tomorrow. If D failed to deliver
tomorrow after demand is made C may compel D to do his obligation and may ask for damages

Statement No. 2 D obliged himself to deliver a car to C tomorrow. If D failed to deliver tomorrow after
demand is made C's right is to ask a third person to deliver a car to him at the expense of D plus damage

a Both are true

b. Both are false

c. No. 1 is true No. 2 is false.

d. No. 1 is false. No 2 is true

True 64. Payment made in good faith to any person in possession of the credit shall extinguish the
debtor's obligation.

False 65. D binds himself to pay 'little by little". The obligation is for the benefit of the debtor.
 Law on Obligation and Contracts

D. 66. The following except one are secondary modes of extinguishing obligations. Which is that
exception?

a death of both parties

b. prescription

c. compromise

d. changing the object of the obligation with the consent of the parties

C. 67 Statement No. I: “Legal compensation takes place by operation of law even if the parties may not
be aware of.”

Statement No. 2. The indivisibility of an obligation necessarily implies solidarity

a Both statements are true.

b. Both statements are false.

c. Statement No. 1 is true while statement No. 2 is false.

d. Statement No. 1 is false while statement No. 2 is true.

B 68. An obligation wherein various things are due but the complete performance of all of them is
necessary to Extinguish the obligation

(1 point)

a Facultative obligation

b. Conjoint obligation

c. Alternative obligation

D. Pure or simple obligation

False 69. The owner and operator of a taxicab who had been negligent while driving the cab can be held
liable for damages for injuries sustained by his passenger based on culpa aquiliana

True 70. Payment by cession does not always extinguish the whole obligation.

A 71. The passage of time extinguishes the obligation:

a Prescription

b. Fulfillment of resolutory condition

c. Arrival of resolutory period

d. Remission
 Law on Obligation and Contracts

e Rescission

B/C?? 72. When Al voluntarily takes charge of the neglected business of Bo without the latter's authority
where reimbursement must be made for necessary and useful expenses, there is a

a Quasi delict

b. Quasi-contract

c Negotiorum gestio.

d. Solution indebiti

False 73. Delay or mora is defined as the failure of the debtor to observe the required standard of care
required by the nature of the obligation taking into consideration the circumstances of time, person
event and place.

B 74. On June 1, 2010, S sold to B the former's horse for P10,000. S promised to deliver on June 25,
2010, while B did not promise when to pay.

a B can demand delivery from S anytime after June 1, upon payment of the price of the sale

b. S cannot demand payment until he delivers the horse.

c. Obligation of B to pay is subject to the condition that will deliver the horse

d. S can demand from B payment anytime from June 1, because E's obligation is not subject to any
condition.

True 75. The creditor acquires real rights over the thing from the moment the thing is delivered and nor
from the time the obligation to deliver it arises.

True 76. In delegacion, the insolvency of the new debtor may at times revive the original debtor's
obligation.

True 77. Solidarity may exist although the creditors and the debtors may not be bound in the same
manner and by same periods and conditions

True 78. Just before the obligation became due and demandable, the debtor proposed to the creditor
that he would give him a specific cart instead of paying P150,000, and which proposal was accepted by
the creditor. Here, there is extinguishment of an obligation by way of dacion en pago.

True 79. The payment of debts in money shall be made in the currency stipulated, and if it is not possible
to deliver such currency which is legal tender in the Philippines

B 80. A wrong committed independent of contract and without criminal intent is-

a Culpa contractual

b. Culpa aquliana
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c delict

d quasi-contract

e none of the above

C? 81. All of the following except one are civil liabilities arising from crime

a restitution

b. reparation of the damaged caused

c imprisonment

d. indemnification for consequential damages

D? 82. Which of the following is considered as quasi-contract?

a Solutio indebiti.

b. When the third person without the knowledge of the debtor, pays the debt

c. Reimbursement due the person who saved property during fire or storm without the knowledge of
the owner.

d. All of the above.

E?? 83. A mango tree in the land of Osni is reclining towards the road. All of a sudden without a storm or
an earthquake or even a strong wind, the tree fell hitting a car belonging to Yassie causing a P20,000
damage

The liability of Osni to Yassie arises from

a Law

b. Quasi-contracts

c. Contracts.

d. Crime

e Quasi-delict

A 84. Statement No. 1 Responsibility arising from fraud is demandable in all obligations. A waiver of an
action for future fraud is void

Statement No. 2. When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void. If it depends upon chance or upon the will of a third person the
obligation shall take effect in conformity with the provisions of laws.

a Both statements are true.

 Law on Obligation and Contracts

b. Both statements are false.

c. No. 1 is false No. 2 is true.

d No. 1 is true, No. 2 is false

False 85. Novation, which consists in substituting a new debtor in the place of the original one, may not
be made without the consent of the debtor

True 86 The concurrence of 2 or more creditors and 2 or more debtors in one and the same obligation
does not imply that each one of the creditors has a right to demand, or that each one of the debtors is
bound to render entire compliance with the obligation.

False 87. In civil obligation, the fulfillment of the obligation depends solely on the conscience of the
person

B/A?? 88. A civil liability which involves the return of the object of the crime whenever possible, plus
alowances for any deterioration or diminution of value as may be determined by the court to the rightful
owner- (1 point)

a reparation

b. restitution

c. indemnification

d. imprisonment

D 89. Three of these are characteristics of payment by cession Which is the exception?

a complete or partial insolvency.

b more than one debt

c. abandonment of all the debtor's properties except those exempt from execution.

d. one debtor, one creditor

False? 90. The giving of money order for the full amount of the obligation is payment.

False? 91 Civil fruits are those produced by lands of any kind through cultivation

False? 92. The principal remedy of the creditor in case the debtor is guilty of fraud in the performance of
an obligation is basically to file an annulment of the obligation with damages

A? 93. A owes B P2.000 demandable and due on September 10, 2010. B, on the other hand, owes A
P2,000 demandable and due on or before September 30, 2010. If claims compensation on September
10, 2010, can A rightfully oppose?

a No. B, who was giving the benefit of the term, may claim compensation because he could then choose
to pay his debt on September 10, 2010 which is actually "on or before September 30, 2010."
 Law on Obligation and Contracts

b. Yes. A can property oppose because for compensation to take place, mutual consent of both parlies is
necessary

c. Yes. A can property oppose and if B still refuses to accept his payment made on September 30,

2010, A can deposit his payment in court

d. None of the above

True 94 When the conditions have for their purpose the extinguishment of an obligation to give the
parties, upon the fulfillment of said conditions, shall return to each other what they have received.

A?? 95. Example No. 1: D for P10.000 mortgaged his land to c. C instead of a deed of mortgage executed
a deed of sale and let D sign his name D's right is to go to court and ask for annulment

Example No. 2: D obliged himself to give object No. 1 or object No. 2 to C. In here, both objects are due.

a Both are true

b. Both are false.

c c No. 1 is true No 2 is false.

d No. 1 is false, No 2 is true

B? 96. D1, D2 and D3 are solidary debtors of C for P30,000. The obligation was in writing. After the
lapsed of the ten- year prescriptive period, which of the following statement is incorrect.

a. D1 paid C knowing that the obligation has already prescribed, D1 cannot ask reimbursement from D2
and D3

b. if D1 paid not knowing that the obligation has already prescribed, D1 cannot ask reimbursement from
D2 and D3.

c. lf D1 paid C not knowing that the obligation has already prescribed, his right is to proceed against C
because there was undue payment.

d None of the above

True 98 Payment means not only the delivery of money but also the performance, in any other manner
of an obligation

D? 99. Statement No. 1: in solutio indebiti, the contract of the parties is the basis for damages in case of
non-performance

Statement No. 2. Dolo", as a ground for awarding damages, is the deliberate intention to cause damage
or injury to another person

a Both are true

b. Both are false.

 Law on Obligation and Contracts

c. No. 1 is true No 2 is false.

d. No. 1 is false No. 2 is true

True 100. Obligations arising from contracts have the force of law between the contracting parties and
should be complied with in good faith

True 101. In obligations with a penal clause, the penalty shall substitute for damages and the payment of
interest in case of noncompliance.

False 102. In order that the creditor can demand the penalty in an obligation with a penal clause, it is
necessary that he show proof of actual damage suffered by him

False 103. When the debtor binds himself to pay when his means permit him to do so, the obligation
shall be deemed to be conditional.

D. 104. G was appointed guardian of S. the latter being 16 years old. S sold his parcel of land in writing to
B valued at P100,000 for P75,000, suffering lesion by' of the value. What is the status of the contract?

a Rescissible

b. Unenforceable

c. Enforceable

d Voidable

A? 105. The obligation of the employer to pay death benefits and funeral expenses for his employee's
death while in the course of employment as sanctioned by the Workmen's Compensation Act is one that
arises from

a Law

b Contracts

c. Quasi-contracts

d. Answer not given

False 106. The concurrence of two or more debtors and two or more creditors in the same obligation is
presumed to be a solidary obligation.

C 107. Which of the following is not an obligation with a period? (1 point)

a "Payable soonest"

b. An obligation payable little by little

c. Will pay you P10,000 If I like

d. Payable "within 2 years from today'

 Law on Obligation and Contracts

e. All of the above

True 108. The renunciation of the principal debt shall extinguish the accessory obligations; but the
waiver of the latter shall leave the former in force

True 109 Prescription is the extinguishment of an obligation by the passage of time

D? 110. Which of the following is not an obligation arising from law? (1 point)

a Delict

b. Quasi-contract

c. Quasi-delict

d Contract

C/D/A?? 111. S sold to B a specific car for P10,000 and promised to deliver on December 25, 2017. The
next day, after the sale is made, he sold the same car to X and delivered it to X on the same day. If no
delivery is made by S to B on December 26, 2017, which of the following is correct?

a Sis not in default because there was no demand.

b. B can cancel the contract between S and X because the contract of S and B was perfected ahead of X.

c. S is liable to B for the value of the car plus damages.

d. S is in default, even if there was no demand. Hence, he will answer for damages

False. 112. Future fraud on the part of the debtor can be waived

False 113. In alternative obligation, both parties have equal rights of choice.

C 114. The act of abandoning all his properties in favor of his creditors so that the latter may cause their
sale and apply the proceeds thereof to their daims proportionately is called

a dacion en pago

b. set off

c. payment by cession

d tender of payment with consignation

B 115. Which obligation is not valid?

a promise to give you P100,000 on December 25, 2010

b. 1 promise to give you P100,000, if I go to Sampaloc Quezon this weekend."

a promise to give you P100,000 if your patient dies."

 Law on Obligation and Contracts

d. promise to give you P100,000 if you pass the May 2010 CPA Board Examination."

False 116. Remission of an obligation obtained by one of the solidary debtors shall entitle him to get a
share from his co-debtors by way of reimbursement

False 117. After substitution in facultative obligations, the loss of the principal through the fault or
negligence of the debtor shall render him liable for damages in favor of the creditor

False? 118. In culpa contractual, negligence on the part of the debtor must be first proved by the injured
person in order to be awarded with damages.

False? 119."I promise to give you a specific ring if I go to Subic this Sunday". This kind of obligation is
valid and legally demandable from the creditor should he really go to Subic as he promised

False 120. The nullity of the principal obligation does not carry with it that of the penal clause.

E 121. Consignation alone shall give rise to the extinguishment of an obligation, EXCEPT: (7 point)

a When the creditor is absent or unknown, or does not appear at the place of payment.

b. When he is incapacitated to receive the payment at the time it is due.

c. When two or more persons claim the same right to collect

d When the title of the obligation has been lost

e. None of the above

D 122 Every obligation whose performance does not depend upon a future or uncertain event, or upon
a past event unknown to the parties, is demandable at once. This refers to:

a Divisible and indivisible obligations

b. Joint and Solidary obligations

O c Obligations with a period

d. Pure obligation

C? 123. In which of these cases is advanced payment recoverable by the debtor?

a. lf the payment is only of interest credited for the proper period.

b. If the debtor voluntarily paid the obligation knowing that it is not yet due and demandable

c. If the debtor was unaware of the period.

d. If the obligation is reciprocal and both parties advanced payment

True 124. The thing is deemed lost when it perishes, or goes out of commerce, or disappears in such a
way that its existence is unknown or it cannot be recovered.
 Law on Obligation and Contracts

False 125. Whenever in an obligation a period is designated, it is presumed to have been established for
the benefit of the debtor, unless from the tenor of the same it should appear that the period has been
established in favor of the creditor

A?? 126. Example 1-D obliged himself to give a specific ring upon failure to give P10,000.

Example 2-D obliged himself to give a specific ring. However, if he so desires, D may instead give
P10,000

a Both are valid obligations.

b. Only No. 2 is valid.

c. Only No 1 is valid

d. Both obligations are invalid because both depends upon the sole will of D.

True? 127 The creditor is not compelled to accept payment in check or other negotiable instruments

False?? 128. In alternative obligations, what converts the same into a pure or simple obligation is the
choice of prestation to be performed by the debtor.

D. 129. The following are causes vitiating consent, EXCEPT:

a Violence

b. Intimidation

c. Fraud

d. None of the above

True?? 130 Interests are recoverable if obligations consist in payment of money upon judicial demand

C? 131. Which of the following statements is false?

a The nullity of the principal carries with it that of the penal clause

b. Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be
demanded.

c I will pay you P10,000 "soonest" is for the benefit of the debtor

d. Condonation is essentially gratuitous.

True? 132. A solidary debtor is at all times entitled to reimbursement from his co-debtors if he pays for
their obligations.

B 133. It is one of the essential elements of an obligation

a A maker or draver
 Law on Obligation and Contracts

b. An object or prestation

c. A drawee

d money

True? 134. Every person obliged to give something is also obliged to take care of it with the proper
diligence of a good father of a family

D. 135. Statement No. 1: The receipt of the principal obligation without reservation as to the payment of
interest shall raise a conclusive presumption that the interest is also paid

Statement No. 2. The receipt of the latter installment of a debt without reservation as to prior
installment, shall not raise a conclusive presumption that the prior installment is also paid.

a Both are true

b. Both are false.

c. No. 1 is true No. 2 is false

d. No. 1 is false No. 2 is true

True 136 Ten sacks of corn cannot be compensated legally by ten sacks of rice

True? 137. In facultative compensation, the debtor is legally allowed to have the two obligations set off

False? 138. After the obligation became due and demandable, the creditor agreed to a proposal by the
debtor to give him a specific cow instead of paying P25,000. This is a case of novation by changing the
term or the object of an obligation

True 139. In an obligation subject to a suspensive period, what is suspended is the birth of the obligation

C? 140. Daryl is the driver of the passenger bus which is owned and operated by Osni While Daryl is
driving said bus, it met an accident through his negligence where Prots, a passenger, was injured Daryl is
liable to Prots for damages which arises from (1 point)

a law

b. Quasi-contracts

c. Contracts.

d Crime

e. Cupa contractual

D? 142. Which of the following is not a generic obligation?

a obligation to pay P5,000

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b.obligation to deliver 2009 Nissan Sentra Series III

c. obligation to deliver 50 cavans of rice

d obligation to give a delimited generic object

B? 143. Change of persons or objects: (1 point)

a Confusion

b Novation

c. Solutio indebiti

d. None of the above

D?? 144. III give you my car one year after your death." The obligation is

a valid, because the event is sure to come.

b valid, the obligation is conditional

c. valid, but disregard the condition

d. void, not legally possible.

False 146. D issued a promissory note payable to the order of C with G as the guarantor. The same note
was negotiated by C to A, A to B, B to E, then lastly from Eto G. The merger taking place in the person of
G extinguishes the principal obligation

C 147. Three of the following are requisites of an obligation. Which is the exception?

a Prestation

b. Efficient cause

c. Delivery

d. Passive Subject

B 148. Meeting in one person of the characteristics of both debtor and creditor in one and the same
obligation extinguishes the obligation by way of

a novation

b merger of confusion

C. compensation or set-off

d condonation or remission
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C? 149. The kind of compensation which may only be raised by the creditor and not by the debtor in the
obligation to give gratuitous support:

a judicial compensation

b. conventional compensation

C facultative compensation

d legal compensation

A? 150. A judicial relation known as Negotiorum Cestio takes place.

a When a person voluntarily takes charge of another's abandoned business or property without the
owner's consent.

b. When something is received and there is no right to demand it and it was delivered through mistake.

c. When a person is appointed by a court to take the property or business of another.

d. None of the above

False 151 Suspensive condition is one which extinguishes the obligation upon the happening of the
condition

False 152 In expromission, the insolvency of the new debtor may at times revive the original debtor's
obligation

C? 153 The wrongful act or tort which causes loss or harm to another is called:

a Damages

b. Damage

c Injury

d. None of the above

True 154. Unless the law or stipulation of the parties requires another standard of care, the debtor is
obliged to take care of the thing with the proper diligence of a good father of a family.

D 155. Conrad and Charlie are jointly indebted to Pete for P100,000. Pete assigned his interest to Crispin
who assigned it back to Conrad.

a The debt is totally extinguished by compensation

b. The debt is totally extinguished by merger.

c The debt is partially extinguished by compensation

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d. The debt is partially extinguished by merger.

A 156 The officious manager or gestor is liable for any fortuitous event, except

a lf he has undertaken risky operations which the owner was accustomed to embark upon

b. If he has preferred his own interest to that of the owner

c if he fails to return the property or business after demand by the owner

d. If he assumed the management in bad faith.

True? 157. An obligation "to pay P300,000" contracted by X, Y and Z in favor of A, B and C is a divisble
obligation.

True 158 In joint obligation, if one of the debtors is insolvent, the others shall not be liable for the
payment of his share

B? 159. A source of obligation where there is criminal negligence (1 point)

a culpa contractual

b quasi-contract

c. culpa delictual

d culpa aquiiana

True 160. No person shall be responsible for events which could not be foreseen, or which though
foreseen, were inevitable.

C. 161. Which of the following obligations is not subject to a period?

a payable soonest

b. payable "little by little

c. payable whenever "I like it"

d. payable "when my means permits me to"

B. 162. Consignation alone, as a special form of payment, may extinguish an obligation under any of the
following instances. Which is the exception?

a When the creditor is absent, or is unknown or does not appear in the place of payment.

b. When the creditor is capacitated to receive payment.

c When the creditor refuses to issue receipts

d When there are two or more persons claiming title to one and the same obligation
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e. When title to the same obligation has been lost.

True? 163. Debtor obliges himself to pay Creditor P500,000 on or before December 31, 2019 on
demand. In this case the period is established for the benefits of the debtor.

True? 164. An obligation payable "as soon as possible" is an obligation with a period for the benefit of
both the debtor and the creditor

C? 165 A and B are solidary debtors of X and Y solidary creditors to the amount of P4,000. On the due
date, X renounced in favor of A the entire obligation Which of the following is correct?

a B shall give A P2,000.

b. Y can still collect from A or B P2,000.

C. Y can collect from X P2,000.

d. Any of the three.

e. None of the above

True? 166. An obligation in money is a divisible obligation

C? 167. When the debtor binds himself to pay when his means permit him to do so, the obligation is: (1
point)

a Pure

b. Conditional

c. With a period

d Simple

e. None of the above

A? 168. S owns specific ring and sells it to B for P10,000. B paid S the price, and S promised to deliver the
ring five (5) days after After the sale, S gets a loan from X and pledged the ring in a private instrument.

Statement 1 - Between 0 and X, B has got a better title because the pledge did not appear in a public
instrument

Statement 2 - However, if S delivers the ring to X, X will have a better title because there was delivery

a Both are true

b Both are false

c. No. 1 is true; No 2 is false

d. No. 1 is false No. 2 is true,

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True?? 169. A quasi-contract does not require consent of the contracting parties.

True 170. When the debtor is guilty of fraud in the fulfillment of an obligation, a creditor can demand
payment of damages and interest in addition to the penalty

True? 171. Obligation for whose fulfillment a day certain has been fixed, shall be demandable only when
that day comes. Obligation with a resolutory period takes effect at once, but terminates upon arrival of
the day certain

A? 172. The duty not to recover what has been voluntarily paid a though payment was no longer
recuired:

a Natural obligation

b. Moral obligation

c. Civil obligation

d. None of the above

A?? 173. The loss or harm suffered by one person on his property is called:

a Damages

b. Damage

с. Injury

d. None of the above

True 174. Loss of a generic thing which is the object of an obligation, even without the fault of the
debtor, does not extinguish the debtor's obligation

True 175. Proof of actual damage suffered by the creditor is not necessary in order that the penalty in an
obligation with a penal cause may be demanded

False? 176 The delivery to and acceptance by the creditor of a certified cashier's check produces
payment of the debtor's obligation

False? 177 The receipt by the principal of the payment for the principal amount without reservation as
to the payment of the interest creates a presumption that the interest has been paid while the receipt
by the principal of a latter instalment without reservation as to the payment of a prior installment
creates a conclusive presumption that the prior installment has been paid

False 178. If the debt produces interest, payment of the interest shall not be deemed to have been
made until the principal has been covered or paid

B? 179 Statement No. 1: "I will give you a specific car if you will not marry X this year (2018) If by the end
of 2017, both parties are alive and no marriage has taken place my obligation is extinguished.
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Statement No. 2 "I will give you P10,000 if you cannot make a dead man alive. This is an impossible
condition obligation not demandable.

a Both are true

b. Both are false.

c. No. 1 is true No. 2 is false.

d. No. 1 is false, No. 2 is true

False? 180. Payment made by a third person who does not intend to be reimbursed by the debtor is
deemed to be a donation which requires the debtor's consent of the debtor's consent or permission is
not giver, but the third person paid the creditor, his right is to proceed against the creditor not the

False? 181 D obliged himself “to pay to C the sum of P50,000 which he owes him when he (D) feels like
it”. This kind of obligation is valid and legally enforceable.

A? 182 The extinguishment of obligations when two persons, in their own right, are the debtors and
creditors of each other is called

A compensation

B merger

C remission

D novation

C 183 A, B and C joint debtors of joint creditors W,X,Y and Z in the amount of P300,000. How much can
W and X collect from B

A 75,000

B 150,000

C 100,000

D none of the above

E? 82. Which of the following is not considered as quasi-contract?

a Solutio indebiti.
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b. When the third person without the knowledge of the debtor, pays the debt

c. Negotiorum gestio

d. Reimbursement due to the person who saved the property during fire or storm without the
knowledge of the owner

e. none of the above

False? 184 Solutio indebiti is a contract

debtor, for reimbursement and not against the debtor.