ALW131 LAW ON OBLIGATIONS AND CONTRACTS
1. C is the creditor of D in the amount of P50,000. G
is the guarantor of D. D paid C partially with
P20,000. A, not knowing the partial payment of D
and against the will of D, paid C the amount of
P50,000. What is the effect of this payment in the
obligation?
A. The obligation is extinguished. A cannot
recover any amount from D, but A can
demand reimbursement from G in the amount
of P50,000.
B. The obligation is extinguished. A can demand
P30,000 from D because this amount benefited
D, or A having been subrogated into the rights
of C, can proceed against G.
C. The obligation is not extinguished. A’s
payment being against the will of D does not
extinguish the obligation.
D. The obligation is extinguished. A can demand
P30,000 from D, but if D cannot pay, A
cannot ordinarily proceed against guarantor G
because A is not entitled to subrogation.
2. A obliged himself to pay X P100,000 in 30 days
plus a penalty of P20,000 if he fails to pay the
obligation in due time. A failed to pay the
obligation in 30 days. X can demand from A:
A. The principal of P100,000 plus P20,000
penalty
B. The principal of P100,000 plus P20,000
penalty plus legal interest
C. The principal of P100,000 plus legal interest
D. The principal of P100,000 plus P20,000
penalty plus legal interest plus damages
3. In tender and consignation, if after consignation is
made, the creditor allow the debtor to withdraw
the thing deposited in the court, which of the
following is incorrect:
A. Co-debtors, guarantors and securities are
released from the obligation unless they
consented.
B. The obligation remain subsist
C. The obligation is extinguished
D. None of the above
4. X has been missing for some time leaving no one
manages his properties. A and B jointly took
charge of the management thereof. However, due
to the fault of A, the properties of X were
damaged. The liability therefore to X for damages
shall be:
A. Only A shall be liable
B. Both shall be jointly liable
C. Both shall be solidarily liable
D. They are not liable since X is at fault for
having abandoned his properties
5. A bought biscuits from a grocery store and was
hospitalized due to food poisoning as a result of
toxic substance contained in the biscuits sold to
retailers by the Ace Foods Inc. A is now suing the
said producer corporation for damages. Decide:
A. A has no right to claim damages from the
producer because there was no contract
between them.
B. Ace Foods Inc. is not liable to A because the
latter was negligent in eating the biscuit
despite the presence of harmful substance
therein
C. A must claim damages from the grocery store
and not from the producer since the grocery
was the one which sold the poisoned food to A
D. Ace Foods Inc. is liable for damages due to
quasi-delict due to negligence in the
preparation of the biscuits thus causing
damage to A.
6. Statement No. 1: If the cause is not stated in the
contract, it is presumed that it does not exist and
therefore the contract is void.
Statement No. 2: Lesion or inadequacy of cause
shall as a rule make a contract defective.
A. Both statements are false
B. Both statements are true
C. 1st statement is false; 2nd is true
D. 1st statement is true; 2nd is false
7. D, fearing that his creditor C, would go after his
only parcel of land to satisfy his claim for payment
of D’s debt, sold his said land to X who did not
know of D’s intention. Decide:
A. C can ask for annulment of the sale as this is
voidable contract.
B. C may ask for damages against X since he was
damaged by sale
C. C can file an action for rescission of the sale
D. C cannot ask for the rescission of the sale
8. BONUS QUESTION
 ALW131 LAW ON OBLIGATIONS AND CONTRACTS
9. A pays for B’s transportation fare, without B’s
knowledge and later discovers that B was entitled
to half fare. Which is NOT CORRECT?
A. A can recover the half fare from B
B. A can recover the half fare from the carrier
C. A can recover ½ from B and ½ from the
carrier
D. A can recover half fare from B only
10. Which is NOT considered as quasi contract?
A. Solutio indebiti
B. Negotiorum gestio
C. When the 3rd person with the knowledge of the
debtor, pays the debt
D. Reimbursement due the person who saved
property during fire or typhoon without the
knowledge of the owner
11. In joint obligation, joint means any of the
following except:
A. Pro rata
B. Mancomunada simple
C. Individually and collectively
D. Proportionate
12. Andok is indebted to solidary creditors Braganza,
Carlito and Dante fo P90,000. Without the
knowledge of Braganza and Carlito, Dante
remitted the obligation of Andok. As a result:
A. The obligation of Andok to pay P90,000 is
extinguished
B. The obligation is not extinguished because
there is no consent from Braganza and Carlito
C. The obligation is extinguished only up to
30,000
D. The obligation is extinguished up to 60,000
13. Ambas obliged himself to pay Bote P1,000,000 in
90 days plus penalty of P10,000 if Ambas fails to 17. One of the following statements is NOT TRUE:
pay the obligation in due time. If Ambas fails to
pay the obligation in 90 days, Bote can demand:
A. The principal P1,000,000 plus P10,000
penalty
B. The principal of P1,000,000 plus P10,000
penalty plus legal interest
C. The principal of P1,000,000 plus P10,000
penalty plus legal interest plus damages
D. The principal of P1,000,000 plus legal interest
plus damages
14. Which of the following is not covered by statute of
fraud?
I. Oral Contracts for piece of work to be
performed only after 6 months from the date of
perfection of the contract
II. Oral Sale of personal computer worth 50,000
III. Oral Sale of real property worth 5,000
IV. Sale of real property in private writing worth
1,000,000
A. I, III, and IV
B. I, II and IV
C. I and IV
D. IV only
15. A, B, C, D, E and F are solidary debtors to G to
the amount of 270,000. Later in an agreement with
B, C, D, E and F, the debt was reduced by G to
P225,000. G sued A. Because of the partial
remission, A was made to pay only P225,000.
How much can A recover from the other solidary
debtors?
A. 1/6 of P270,000 from each plus interest from
the time of payment.
B. 1/6 of P225,000 from each plus interest from
the time of payment
C. 1/5 of P270,000 from each plus interest from
the time of payment
D. 1/6 of P225,000 from each plus interest from
the time of payment
16. Anson, Bernie and Carlito bind themselves in
solidium to pay Yolly the sum of P30,000.
However, Anson is a minor.
A. Anson may be compelled to pay P30,000
B. Anson may be compelled to pay P20,000 only
C. Carlito may be compelled to pay P30,000
D. Bernie may be compelled to pay P20,000 only
A. A creditor is not bound to accept a check in
satisfaction of his demand, because a check
even if good when offered, does not meet the
requirements of legal tender
B. The obligation of a debtor who had agreed to
pay in dollars in a foreign bill of exchange
shall be discharge in Philippine currency
measured at the prevailing rate exchange at the
time of the obligation was incurred
C. The Philippine peso bills when attempted to be
exported, as when carried in excess of that
allowed by the CB regulation, may be deemed
 ALW131 LAW ON OBLIGATIONS AND CONTRACTS
to have been taken out a domestic circulation
as legal tender and thus, treated as commodity
D. The purchasing power or value of money or
currency depends upon can come into being,
can be created or brought about by a law
enacted by the legislative department of the
Government.
18. B bought a gold necklace with a heart-shaped
pendant from S for the price of P20,000.00. After
payment of the price, he requested S to put it in a
small box and wrap it with a birthday wrapper
because he will give it as a birthday gift to his
girlfriend. After the birthday of his girlfriend, she
happily showed the gold necklace and expressed
her gratitude to B, who discovered that the
necklace has a square-shaped pendant and of very
low quality, which is different from the one he
purchased from S. What remedy is available to B
against S in this case?
A. File action for the annulment of the contract of
sale
B. File action for rescission of the contract of sale
C. Demand for the return of the purchase price
D. Demand for the payment of damages
19. D owes C the amount of P2,800,000 payable on
June 30,2012. On June 8,2012, C purchased some
grocery items from the store of D on credit,
payable on June 30, 2012. On maturity date, their
respective obligations are extinguished by:
A. Dation in Payment
B. Novation
C. Compensation
D. Confusion or Merger of Rights
20. On May 3, 2012, D requested for a loan of
P10,000 from C and he offered to pledge his ring
as security for the loan. C granted his request and
promised to give him the money on May 5,2012.
On May 5,2012, C handed the amount of P10,000
to D and May 6,2012, D delivered his ring to C.
Which of the following statements is correct?
A. The contract of loan between them was
perfected when C accepted the offer of D on
May 3,2012
B. The contract of loan was perfected when C
gave the money to D on May 5,2012
C. The contract of pledge was perfected when C
gave the money to D on May 5,2012
D. Both contracts of loan and pledge were
perfected only on May 6,2012
21. Three of the following statements are true. Which
one is false?
A. Not only the parties but their heirs and
assigns are bound by their contract
B. Obligations arising from contracts have the
force of law between the contracting parties
and must be complied with in good faith
C. Fraud committed in the performance of an
obligation gives the injured party the right to
annul the contract
D. Generally, the debtor is not liable for the
non-performance of his obligation due to
fortuitous event
22. X is under obligation to deliver Y’s car to the
latter. However, before delivery Z destroys the car.
Which one of the following is NOT CORRECT?
A. X’s obligation to give the car to Y is
extinguished
B. X is allowed to recover from Z
C. Y has the right to bring an action against Z
D. X is not obliged to give Y and equivalent
value of the car
23. A, B and C solidary owe solidary creditors X and
Y P30,000. X remitted the entire obligation in
favor of A. The effect is:
A. The obligation is not extinguished until A
collects from B and C
B. The obligation is not yet extinguished until Y
is paid by X his share of the credit
C. A cannot recover from B and C because
remission in his favor extend to the benefit of
B and C
D. A can recover from B and C their respective
share of the debt
24. X and Y are solidary debtors of A, B, C, and D,
joint creditors to the amount of P8,000. How much
can A collect from X?
A. A could recover P8,000 from X. A, in turn has
to give to B, C and D P2,000 each
B. A could recover P4,000 only from X
C. A could recover P2,000 only from X
D. A could recover P8,000 from X. A, in turn
does not have to give to B, C and D P2,000
each.
 ALW131 LAW ON OBLIGATIONS AND CONTRACTS
25. The distinction between conventional subrogation
and assignment is that in conventional
subrogation:
A. It is a mere cession of right
B. An obligation is extinguished and another
appears
C. The same obligation, without being
extinguished, is transferred to another
D. The debtor’s consent is not necessary
26. A and B are solidary debtors of C, D, E and F joint
creditors in the amount of P20,000. How much can
C collect from A?
A. C could collect P2,500 from A
B. C could collect from A P10,000. C is then
obliged to give P2,500 each to D, E and F
C. C could collect P5,000 from A
D. C could collect the whole P20,000 from A but
in turn will give P5,000 each to D, E and F
27. It refers to a joint obligation:
A. One in which each debtor is liable for the
entire obligation and each creditor is entitled
to demand the whole obligation
B. One in which either one of the parties is
indispensable and the other is not necessary
C. One in which the obligation of one is
resolutory condition of the other, the non-
fulfillment of which entitles the other party to
rescind the contract
D. One in which each of the debtors is liable only
for a proportionate part of the debt and each
creditor is entitled only for a proportionate
part of the credit
28. D1, D2 and D3 oblige themselves solidarily to
give C a specific car valued P12,000. On due date,
C demanded delivery but the debtors failed to
deliver. The next day, while D1 still in possession
of the car, it got lost due to fortuitous event. The
right of C is:
A. None, obligation is totally extinguished
B. Proceed against any of the debtors for the
value and damages
C. Proceed against D1 only, because he is the one
in possession at the time the specific car was
lost
D. Answer not given
29. D owes C P1M. G is the guarantor. A stranger S
paid C the debt of D without the knowledge of the
latter. In this case:
A. If D fails to pay S, the latter can compel G to
pay him
B. If G pays S, the former can demand
reimbursement from D
C. S cannot compel G to pay him
D. D has no obligation to reimburse S because he
paid without the consent of D
30. A sold to B genuine bottle of Fundador brandy.
However, upon delivery the former substituted a
fake, B now wants to annul the sale. Decide:
A. The contract is void ab initio therefore it can
be annulled
B. The contract can be annulled since it is
voidable due to fraud
C. The contract cannot be annulled because it is
only incidental fraud
D. There is dolo insidente therefor it can be
annulled
31. A stipulation in favor of the third person
A. Stipulation pour autrui
B. Stipulation pour over
C. Assignment of credit
D. Pactum commissorium
32. A threatened to kill B if the latter would not marry
the former’s daughter who was pregnant with B’s
child. Intimidated, B married A’s daughter against
his will.
A. The contract is not voidable because the threat
was made by a third person not by one of the
parties
B. The contract is not voidable because the claim
for marriage is just or legal and therefore
consent is not vitiated
C. The contract is not voidable since B has to
answer for his fault that A’s daughter became
pregnant
D. The contract is voidable due to intimidation
even if employed by a third person
33. The following are the requisites of an obligation,
except:
A. Passive and active subject
B. Prestation
C. Efficient Cause
D. Demand
 ALW131 LAW ON OBLIGATIONS AND CONTRACTS
34. The right of the creditor that is enforceable against B. Quasi-contract
a definite debtor is : C. Delicts
A. Real right D. Quasi-delict
B. Natural right
C. Moral right 42. A juridical relation resulting from a lawful,
D. Personal right voluntary, and unilateral act and which has for its
purpose the payment of indemnity to the end that
35. The source of obligations which is a rule of no one shall be unjustly enriched or benefitted at
conduct, just and obligatory, promulgated by the expense of another
legitimate authorities for common good, benefit A. Contract
and observance B. Quasi-contract
A. Contracts C. Delicts
B. Quasi contracts D. Quasi-delicts
C. Delicts
D. Law 43. When a person voluntarily takes charge of
another’s abandoned business or property without
36. A juridical necessity to give, to do or not to do the owner’s authority where reimbursement must
A. Civil obligation be made for necessary and useful expenses
B. Natural obligation A. Quasi-contract
C. Moral obligation B. Quasi-delict
D. Social obligation C. Negotiorum gestio
D. Solutio indebiti
37. This is based on equity and justice
A. Civil obligation 44. When something is received when there is no right
B. Moral obligation to demand it, and it was unduly delivered thru
C. Natural obligation mistake, the recipient has the duty to return it
D. Social obligation A. Quasi-contract
B. Quasi-delict
38. The person in whose favor the obligation is C. Negotiorum gestio
constituted D. Solutio indebiti
A. Obligor
B. Obligee 45. A fault or act of omission of care which causes
C. Passive subject damage to another, there being no pre-existing
D. Debtor contractual relations between the parties
A. Quasi-contract
39. The object or subject matter of the obligation B. Quasi-delict
A. Prestation C. Negotiorum gestio
B. Vinculum D. Solutio indebiti
C. Active subject
D. Passive subject 46. Ordinary diligence is
A. Diligence of a good father of a family
40. The efficient cause or juridical tie why the B. Extraordinary diligence
obligation exists C. Diligence required by law
A. Active subject D. Diligence of a good father of a good family
B. Passive subject
C. Prestation 47. Default on the part of both parties
D. Vinculum A. Mora accipiendi
B. Mora solvendi ex-re
41. The following are sources of obligations derived C. Mora solvendi ex-persona
from law, except: D. Compensatio morae
A. Contracts
 ALW131 LAW ON OBLIGATIONS AND CONTRACTS
48. A delivered his bracelet to B for B’s necklace. No 4. Specific performance may not be possible in this
written agreement was signed by the parties. civil obligation
Which of the following is appropriate description A. A, a painter, obliges himself to paint the
of the contract between A and B? portrait of B on April 9, 2009
A. Onerous and bilateral B. C, a farmer, obliges himself to give his only
B. Bilateral and innominate cow to D on February 14, 2009
C. Bilateral and nominate C. E, a veterinarian, obliges himself to give one
D. Aleatory and nominate of his dogs to F on May 1, 2009
D. G, a registrar of deeds, obliges himself to
49. The meeting of minds regarding the object and effect registration of H’s parcel of land on
cause of the contract (stage in the life of a February 29, 2009
contract)
A. Conception 5. Synonymous to obligee
B. Preparation 1. Creditor 2. Active subject
C. Death 3. Debtor 4. Passive subject
D. Birth A. 1 and 2
B. 1 and 4
50. A contract where both contracting parties are C. 2 and 3
incapable of giving consent is D. 3 and 4
A. Void
B. Rescissible 6. The person who has the duty of giving, doing or
C. Unenforceable not doing
D. Voidable A. Obligee
B. Obligor
C. Active subject
D. Creditor

1. The following are the requisites of an obligation, 7. Synonymous to obligor

except: 1. Creditor 2. Active subject
A. Passive and active subject 3. Debtor 4. Passive subject
B. Prestation A. 1 and 2
C. Efficient cause B. 1 and 4
D. Demand C. 2 and 3
D. 3 and 4
2. The right of the creditor that is enforceable against
a definite debtor is: 8. A owes B P1,000. A, knowing that the debt has
A. Real right prescribed, nevertheless, still pay B. Can A
B. Natural right recover what he voluntarily paid
C. Moral right 1st answer: Yes, because B has no right to demand
D. Personal right the payment effected by A
2nd answer: No, the payment extinguished the
3. Which of the following is a civil obligation? natural obligation
A. X obliges himself to pay Y P10,000 on A. Both answers are correct
October 30, 2009 B. Both answers are wrong
B. A is a debtor of B for P20,000 due on C. Only the 1st is correct
September 30, 1995 D. Only the 2nd is correct
C. The obligation of a husband and wife to
observe fidelity 9. A supports B, a minor, because B’s father refuses
D. The obligation of a catholic to hear mass every to support B. the father is obliged to reimburse A.
Sunday The source of obligation is:
A. Contracts
 ALW131 LAW ON OBLIGATIONS AND CONTRACTS
B. Quasi-contracts A. The van of A
C. Delicts B. The generosity of A
D. Quasi-delicts C. The period of one week
D. The delivery of the van
10. Tort or Culpa Aquiliana is
A. Quasi-contract 17. The principle that contracting parties may
B. Quasi-delict establish such stipulations, clauses, terms and
C. Negotiorum gestio conditions as they may deem convenient, provided
D. Solutio indebiti they are not contrary to law, moral, public policy
and public order, refer to the principle of
11. They are the elements that are found in certain A. Liberty of contract
contracts and are presumed to exist unless set B. Relativity of contract
aside by the parties C. Consensuality of contract
A. Accidental elements D. Mutuality of contract
B. Natural elements
C. Artificial elements 18. The following instances will render an offer
D. Incidental elements ineffective before acceptance is conveyed. Which
one will not? When one of the parties
12. They refer to the elements that may be stipulated A. Is civilly interdicted
by the contracting parties B. Becomes insolvent
A. Accidental elements C. Becomes insane
B. Natural elements D. Is placed under a hypnotic spell
C. Artificial elements
D. Incidental elements 19. The following statements pertain to the cause of a
contract. Which statement refer to motive?
13. The following are some accidental elements of a A. It is the essential reason for a contract
contract of sale, except B. It is always known to the contracting parties
A. Terms of payment C. Its illegality does not affect the validity of the
B. Interest rate contract
C. Place of payment D. There will be no contract without it
D. Accession and accessories
20. The bargaining point, that is, when negotiation is
14. A contract where the cause with respect to each in progress (stage in the life of a contract)
contracting party is the prestation or the promise A. Consummation
of a thing or service by the other is B. Conception
A. An onerous contract C. Perfection
B. A gratuitous contract D. Birth
C. An innominate contract
D. An aleatory contract 21. The point where the parties have performed their
respective obligations and the contract is
15. A contract where one party receives no valuable terminated
consideration and the cause id the liberality of the A. Preparation
benefactor is B. Conception
A. A gratuitous contract C. Perfection
B. A unilateral contract D. Consummation
C. An onerous contract
D. A commutative contract 22. When there is concurrence of offer and
acceptance, there is:
16. A delivered his van to B for the latter’s use for one A. Payment
week without any compensation. The cause of the B. Consignation
contract is: C. Consent
 ALW131 LAW ON OBLIGATIONS AND CONTRACTS
D. Tender payment 29. If mistake, fraud, accident or inequitable conduct
23. An absolute simulated or fictitious contract is
A. Void
B. Voidable
C. Rescissible
D. Unenforceable
24. A sold to B his cow for P5,000. No date is fixed
by the parties for the performance of their
respective obligations. The obligation of A is
A. To deliver the cow immediately as there is a
perfected contract
B. To deliver the cow within the reasonable time
from the perfection of the contract
C. To deliver the cow upon the payment by B of
P5,000
D. To rescind the contract as there is no time
fixed for the delivery and payment
25. A owes B P10,000 due on March 10, 2010. A
owes B P8,000 due on March 11, 2010. A obliged
himself to deliver B a cow valued at P6,000 on
March 12, 2010. On March 13, 2010, A paid B
P10,000. If A makes an application of payment,
A. The P10,000 should be applied to the first debt
only
B. The P10,000 should be applied to the second
debt only
C. The P10,000 may be applied either to the first
debt or second debt
D. The P10,000 may be applied to the first debt
or to the second debt or to the third debt
26. The conception of a contract is when
A. When there is meeting of the minds
B. When negotiations are in progress
C. When the contract is executed
D. When the parties come to an agreement
27. Contract which has no effect at all
A. Rescissible
B. Voidable
C. Unenforceable
D. Void
28. Contract which can not be ratified
A. Rescissible
B. Voidable
C. Unenforceable
D. Void
has prevented a meeting of the minds of the parties
to a contract, the proper remedy is
A. Ratify the contract
B. Ask for a specific performance
C. Annulment of the contract
D. Reformation of the contract
30. A sold his land to B. The sale was made orally. B
paid the agreed price. B wanted to have the sale
registered but he needs a public instrument. Which
is correct?
A. B may sue A for the return of his money as no
one shall be unjustly enriched at the expense
of another
B. B cannot demand the return of the purchase
price because the sale is unenforceable
C. B may compel A to execute the public
instrument because the sale is valid
D. B may only occupy and use the land as buyer
in good faith
31. A is the guardian of B, a minor. B sold A’s land in
writing to C valued at P1M for P.7M. The sale is
(stage in the life of a contract)
A. Rescissible
B. Voidable
C. Unenforceable
D. Void
32. Although validly agreed upon, courts can nullify
this contract because of damage to one of the
parties or to a third person and its enforcement,
may cause injustice by reason of some external
facts
A. Rescissible contracts
B. Voidable contracts
C. Unenforceable contracts
D. Void contracts