OBLIGATIONS AND CONTRACTS

6. In Accion subrogatoria the creditor may

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

10. It is a future and certain event upon the

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

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

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

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

a. Confusion
1. When the debtor binds himself to pay when his means
b. Reformation permit him to do so, the obligation is:
c. Compensation
d. Novation a. Conditional
b. Pure
ANSWER: C c. Simple
d. With a Period

8. A contract is in the stage of  conception when: ANSWER: D

a. There is meeting of the minds.

b. Negotiations are in progress. 2. Contracts which cannot be sued upon unless ratified,
c. The parties come to an agreement. thus it is as if they have no effect yet are:
d. The contract is perfected.
a. Voidable

ANSWER: B b. Rescissible
c. Void
d. Unenforceable

9. If the obligor binds  himself  to perform his

ANSWER: D
obligation as soon as "he shall have obtained a
loan" from a certain bank, this obligation is:

3. If the obligation of the debtor is "I will pay you my debt

a. With a Term 
after I have arrived from abroad," this is
b. Conditional
c. Suspensive
a. Unenforceable
d. Resolutory
b. With a Period
c. Void
ANSWER: B d. Conditional

ANSWER: D
10.  Contracts entered into in a state of
drunkenness or during a hypnotic spell are:
4. When the characters of the creditor and the debtor are
a. Void merged in one and the same person, there is
b. Valid extinguishment of the obligation by:
c. Voidable
d. Legal a. Compensation
b. Merger of Rights a. There is meeting of the minds.
c. Novation b. Negotiations are in progress.
d. Remission c. The parties come to an agreement.
d. The contract is perfected.
ANSWER: B
ANSWER: B

5. Through insidious words or machinations, A was able 9. If the obligor binds himself to perform his obligation as
to induce B to enter into a contract which without them B soon as "he shall have obtained a loan" from a certain
would not have agreed to it. There is: bank, this obligation is:

a. Undue Influence a. With a Term 

b. Fraud b. Conditional
c. Mistake c. Suspensive
d. Misrepresentation d. Resolutory

ANSWER: B ANSWER: B

6. "A sells to B his lot and house in the city if A decides to 10. Contracts entered into in a state of drunkenness or
transfer and live in the countryside" is an example of: during a hypnotic spell are:

a. Mixed Condition a. Void

b. Potestative Condition b. Valid
c. Casual Condition c. Voidable
d. Resolutory Condition d. Legal

ANSWER: B ANSWER: C

11. Delay in the giving or delivering of a thing

7. It is a mode of extinguishing an obligation when two

a. Mora solvendi ex re
persons in their own right are creditors of each other.
b. Mora solvendi ex persona
c. Mora accipiende ex re
a. Confusion
d. Mora accipiende ex persona
b. Reformation
c. Compensation
ANSWER: A
d. Novation

ANSWER: C
12. Which of the following statements is false?

8. A contract is in the stage of conception when:

a. Obligations to give definite things and those that are not
susceptible of partial performance shall be deemed
divisible.
b. Execution of a certain number of days of work shall be
divisible.
c. Accomplishment of work by metrical units are divisible
d. An obligation to pay a certain amount in ten annual
installments is divisible.
ANSWER: A
13. This contract is without effect unless ratified:
a. Marriage between first degree cousins
b. Contract of sale between two insane persons
c. Contract of sale between husband and wife
d. Donation between husband and wife
ANSWER: B
14. Which of the following contracts is not void ab initio?
a. Those whose object is outside the commerce of men
b. That whose object did not exist at the time of transaction
c. That which contemplates an impossible service
d. That which is undertaken in fraud of creditors
ANSWER: D
15. Rescission of contract can take place in this case
a. When the thing which is the object of the contract is
legally in the possession of a third person who acted in bad
faith
b. When he who demands rescission can return whatever he
may be obliged to restore
c. When the party seeking resolution can perform only as to
part and as to remainder
d. When the seller cannot return the installments paid to
him by the buyer
ANSWER: B
16. A defective contract where damage or lesion is
essential
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
ANSWER: A
17. An instrument may be reformed d
a. Simple donations inter vivos wherein no condition is
imposed
b. Wills
c. When the instrument does not express the true intention
of the parties due to mistake
d. When the real agreement is void
ANSWER: C
18. Three of the following contracts are void. Which one
is not?
a. Oral contract of partnership of three partners and capital
contribution is more than P3,000 in cash
b. Written contract contemplating impossible services
c. Oral contract of partnership where real estate is
contributed as capital
d. Agent's authority to sell land is given orally.
ANSWER: A
19. When a third person assumes the payment of the
obligation even without the knowledge and consent of the
debtor but with the consent of the creditor
a. There is novation
b. There is delegation if debtor is released
 paid for, he will return the same under the same principle,
c. There is subrogation
creating an implied obligation to return. 
d. There is expromission if debtor is released
In a simple, but very common, transaction, the parties are
not aware that they are applying the basic principles of law
ANSWER: D on obligations and contracts. They might not be well
versed, or even, have not had any formal education, yet
they apply these simple principles of law unconsciously.
Thus, If you ask: how we apply laws on obligations and
20. Which of the following is not an element of legal contracts on our daily activities, we apply it unknowingly,
but instinctively, depending on one's value.
compensation?

a. Debts to be compensated are due and demandable

b. There is controversy or adverse claim over any debts to
be compensated
c. There are two or more debts of the same kind
d. There are two or more persons who are creditor or
debtors of each other.

ANSWER: B

Question: Why is it important that obligation in

contractsbe faithfully fulfiiled??
Answer: Laws are enacted to have order (or require the
performance of a particular action to achieve the same)
Since the terms and conditions of a contract are considered
the governing laws between parties, it is necessary to
faithfully fulfill one's obligation, that is, to avoid the
occurrence of dispute. Hence, why do we have to fulfill our
obligations, that is to achieving order between the parties to
the contract.

Question: How do you apply the laws on obligations and

contracts to everyday activities and business dealings? 

Answer: We apply laws on obligations and contracts

unconsciously to our daily activities. One will not notice
that in performing a simple common task you have applied
several principles on obligations and contracts. Like, for
example, buying a piece of pandesal, the buyer will offer to
buy and the seller will accept. At this point, once the seller
and buyer agrees to the object and price, and their minds
have met; each of them will not just rescind or refuse to
comply. Even without knowledge of law, one will not just
back out from the perfected sale.

Then, after the perfection of the contract of sell;

unknowingly, they will go on to consummate the same. The
buyer will hand the money and the seller, in return, will
hand over the pandesal. A clear example of reciprocal
obligations, isn't?

If the money given is more than the price of the pandesal,

the seller will give the change. That is because he knows no
one should be enriched at the expense of another; hence, he
has the obligation to return what is not due him. Likewise,
if what was delivered to the buyer is more than what he