Direction: Read and Select The Best Answer For The Following Questions

DE LA SALLE LIPA
College of Business, Economics, Accountancy and Management

Accountancy Department
Accounting Review
COVERAGE: Obligations
a. Sources of obligation their concept-law-,contracts, quasi-contract, delict, quasi-delict
b. Kinds of obligation in general and under the Civil Code.
c. Specific circumstances affecting obligation in general; fortuitous event, fraud, negligence, delay, breach of contract, the tenor
of the obligation.
d. Duties of an obligor, to give, to do and not to do.
e. Extinguishment of obligation with special emphasis on payment of debts in money, mercantile documents as media of
payments, BSP power to declare legal tender and special forms of payments.
Direction: Read and select the best answer for the following questions.
1. Article 1156 of the Civil Code defines an obligation as a

a. Juridical necessity to do or not to do.
b. Juridical necessity to give or not to give.
c. Juridical necessity to give, to do or not to do.
d. Juridical necessity to give, not to give, to do or not to do.
2. The following are the essential elements of an obligation, except
a. An active subject, who has the power to demand prestation, also known as the obligee or creditor.
b. A passive subject, who is bound to perform the prestation, also known as the obligor or debtor.
c. Object or prestation, which is the promise or particular contract to be performed in the performance of an obligation, and may
consist of giving, doing or not doing a thing.
d. Efficient cause, the tie which binds the parties to the obligation, also known as juridical tie or vinculum.
e. The form in which the obligation is manifested.
3. Among the essential elements of an obligation, which are considered the personal elements?
a. Obligee and obligor
b. Prestation and vinculum
c. Obligee and vinculum
d. Prestation and obligor
4. The following statements concerning an obligation are correct, except
a. The obligation to give is one in which the prestation consists in the delivery of a movable or an immovable thing.
b. The obligation not to give is a positive obligation.
c. The obligation to do includes all kinds of work or services.
d. The obligation not to do consists in abstaining from some act.
5. The following are the requisites of a prestation or object of an obligation, except
a. It must be possible, physically and juridically.
b. It must be determinate, or, at least, determinable according to pre-established elements or criteria.
c. It must have possible equivalent in money.
d. It must be a positive obligation only.
6. The following are examples of vinculum, except
a. Relation established by law
b. Relation established by contract
c. Relation established by natural obligation
d. Relation established by quasi-contract or quasi-delict
7. Which of the following statements concerning the distinctions between civil obligation and natural obligation are true?
I. Civil obligations derive their binding force from positive law, while natural obligations derive their binding effect from equity and natural
justice.
II. Civil obligations can be enforced by court action or the coercive power of public authority, while the fulfillment of natural obligations cannot
be compelled by court action but depends exclusively upon the good conscience of the debtor.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
DLSL CPA Board Operation – Business Law

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8. The following are the sources of obligation, except
a. Law
b. Contracts
c. Constitution
d. Quasi-contracts
e. Quasi-delicts
f. Acts or omissions punished by law
9. Which of the following statements concerning obligations arising from law is incorrect?
a. Only obligations expressly determined in the Civil Code or in special laws are demandable.
b. The obligations derived from law are presumed.
c. The law cannot exist as a source of obligations, unless the acts to which its principles may be applied exist.
d. The obligations and correlative rights arising from law shall be governed by the law by which they are created.
10. The obligation of the parents to provide support to their children arises from
a. Law
b. Contracts
c. Quasi-contracts
d. Quasi-delicts
11. Which of the following statements concerning obligations arising from contracts are incorrect?
I. Obligations arising from contracts have the force of law between contracting parties.
II. Obligations arising from contracts should be complied with in good faith.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
12. It is a judicial relation which arises from certain lawful, voluntary and unilateral acts, to the end that no one may be unjustly enriched or
benefited at the expense of another.
a. Delict
b. Quasi-contract
c. Contract
d. Quasi-delict
13. Which of the following statements concerning the kinds of quasi-contract is incorrect?
I. Solution indebiti refers to the voluntary management of the property or affairs of another without the knowledge or consent of the latter.
II. Negotiorum Gestio refers to the judicial relation which is created when something is received when there is no right to demand it and it was
unduly delivered through mistake.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
14. The following are examples quasi-contracts, except
a. A person takes charge of the agency or management of business or property of another with authority or consent of the latter.
b. A person receives something when there is no right to demand it or it was unduly delivered through mistake.
c. A stranger gives support to a child of another person without the knowledge of the person obliged to give support.
d. A person saves the property of another person during fire, flood, storm or other calamity without the knowledge of the owner.
15. Article 100 of the Revised Penal Code provides that every person criminally liable for a felony is also civilly liable. Under Article 12 of the
Revised Penal Code, the following persons are exempt from criminal liability but they are not exempt from civil liability for their acts, except
a. An imbecile or insane person who acted during a lucid interval.
b. A person under nine years of age.
c. Any person who acts under the compulsion of an irresistible force.
d. Any person who acts under the impulse of an uncontrollable fear of an equal or greater injury.
16. The civil liability arising from crimes are as follows, except
a. Restitution which refers to restoration of the thing itself even though it be found in the possession of a third person who has
acquired it by lawful means.
b. Reparation of the damage caused which shall be determined by the Court taking into consideration of the price of the thing and
its sentimental value.
c. Indemnification for consequential damages which shall include not only those caused the injured party but also those suffered by
his family or by a third person by reason of the crime.
d. Compromise of the criminal liability.
17. It refers to a source of an obligation wherein a person by act or omission causes damage to another, there being fault or negligence.
a. Contract
b. Quasi-contract

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c. Quasi-delict
d. Delict
18. The following are the requisites in order that liability for quasi-delict may exist, except
a. There is pre-existing relation between the offender and offended parties.
b. There exists a wrongful act or omission imputable o the defendant by reason of his fault or negligence.
c. There exists a damage or injury which must be proved by the person claiming recovery.
d. There must be a direct causal connection or a relation of cause and effect between the fault or negligence and the damage or
injury, or that the fault or negligence be the case of the damage or injury.
19. Negligence or culpa which results to civil liability arising from quasi-delict is also known as
a. Culpa criminal
b. Culpa aquiliana
c. Culpa contractual
d. Culpa liberal
20. The following are distinctions between quasi-delict and crime, except
a. The right violated by a quasi-delict is a public right while the right violated by a crime is a private right.
b. Every quasi-delict gives rise to liability for damages to the injured party but there are crimes from which no civil liability arises.
c. Criminal liability can never be compromised but liability from quasi-delict can be compromised.
d. In quasi-delict, criminal intent is not necessary, while in crime, criminal intent is necessary except in criminal negligence.
21. While trying to pass each other on a narrow bridge, a passenger bus and a private automobile collided, and two persons, A and B, were
injured. A was a passenger of the bus while B was a pedestrian. The owner of the passenger bus was made a defendant although a
chauffeur was driving the truck and the owner-driver of the private car was also made a defendant. What can be the source of obligation of
the owner of the passenger bus as regards to A, the passenger?
a. Contract of carriage for failure to exercise extra-ordinary diligence
b. Culpa aquiliana or quasi-delict if he exercised diligence of a good father of a family in selecting his employees.
c. Culpa criminal or crime and considered a principal liability
d. Quasi-contract
22. Using the same data in number 21, what can be the source of obligation of the driver of passenger bus as regards to A, the passenger?
a. Contract of carriage
b. Quasi-contract
c. Law
d. Quasi-delict or crime at the option of A
23. Using the same data in number 21, what can be the source of obligation of the owner of the passenger bus as regards to B, the
pedestrian?
b. Culpa aquiliana if he fails to exercise the diligence of a good father of a family in selecting his employees
c. Culpa criminal or crime and considered a principal liability
d. Quasi-contract
24. Using the same data in number 21, what can be the source of obligation of the bus driver as regards to B, the pedestrian?
b. Quasi-contract
c. Law
d. Quasi-delict or crime at the option of B
25. Using the same data in number 21, what can be the source of obligation of the owner-driver of private car as regards to A, the passenger?
b. Quasi-contract
c. Law
d. Quasi-delict or crime at the option of A
26. Using the same data in number 21, what can be the source of obligation of the owner-driver of private car as regards to B, the passenger?
b. Quasi-contract
c. Law
d. Quasi-delict or crime at the option of B
27. Which of the following statements concerning the obligation to deliver a thing is correct?
I. A generic or indeterminate thing is only indicated by its kings, without being designated and distinguished from others of the same
kind.
II. A determinate or specific thing is one that is individualized and can be identified or distinguished from others of its kind.
a. Neither I nor II
b. Both I and II
c. I only
d. II only

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28. Which of the following refers to a determinate thing?
a. White horse
b. Pilot ballpen
c. Car with engine number 143-245
d. House and lot in Villa Lourdes Subdivision
29. The following are incidental or accessory obligations in an obligation to deliver a determinate thing, except
a. Obligation to preserve the thing with due care.
b. Obligation to deliver the fruits.
c. Obligation to deliver the accessions and accessories.
d. Obligation to pay for the freight and insurance in transit.
30. In an obligation to deliver a determinate thing, what degree of diligence shall be exercised by the obligor or debtor in the preservation of
the thing?
a. Extraordinary diligence unless the law or the stipulation of the parties requires another standard of care.
b. Diligence of a father of a good family unless the law or the stipulation of the parties requires another standard of care.
c. Diligence of a good father of a family unless the law or the stipulation of the parties requires another standard of care.
d. No diligence unless the law or the stipulation of the parties requires another standard of care.
31. In an obligation to deliver a determinate thing, when is the creditor or obligee entitled to the fruits of determinate thing or when does the
creditor obtain personal rights over the fruits of determinate thing?
a. From the time of the perfection of the contract.
b. From the time the obligation to deliver it arises.
c. From the time it is delivered.
d. From the fulfillment of resolutory condition.
32. In an obligation to deliver a determinate thing, when does the creditor or obligee obtain real rights over the fruits of determinate thing?
b. From the time the obligation to deliver it arises.
c. From the time the it is delivered.
33. In a contract of sale, when is the buyer or vendee entitled to the fruits of the determinate thing or when does the creditor obtain personal
rights over the fruits of determinate thing?
b. From the time the obligation to deliver arises.
c. From the time the determinate thing is delivered.
34. Which of the following statements concerning real right and personal right is incorrect?
I. A real right is the power belonging to a person over a specific thing, without a passive subject individually determined, against whom
such right may be personally exercised.
II. A personal right is the power belonging to one person to demand of another, as a definite passive subject, the fulfillment of a
prestation to give, to do or not to do.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
35. When a debtor or obligor fails to comply with his obligation, the creditor may avail himself of what remedies?
a. Action for specific performance or action to rescind or resolve the obligation.
b. Action for specific performance with damages only.
c. Action to rescind or resolve the obligation with damages only.
d. Action for specific performance or action to rescind the obligation or action for damages, exclusively or in addition to either of the
first actions.
36. What is the remedy of the creditor in the case the debtor fails to comply with his obligation to deliver a determinate or specific thing?
a. Action for specific performance in addition to damages under Article 1170.
b. He may ask the obligation to be complied with at the expense of the debtor with damages.
c. Action for rescission of the obligation.
d. Action for annulment of the contract.
37. What is the remedy of the creditor in the case the debtor fails to comply with his obligation to deliver an indeterminate or generic thing?
a. Action for rescission of the obligation.
b. Action for specific performance with damages only.
c. He may ask the obligation to be complied with at the expense of the debtor with damages.
d. Either B or C.

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38. In an obligation to deliver a thing, when is the debtor or obligor liable even if the loss of the thing is due to fortuitous event?
I. When the obligor delays in the delivery of the thing.
II. When the obligor promised the same thing to two or more persons.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
39. In an obligation to give a determinate thing, which of the following statements is true?
a. The obligation to give a determinate thing includes that of delivering all of its accessions and accessories only if there is
stipulation to that effect.
b. The obligation to give a determinate thing includes that of delivering all of its accessions and accessories even though they may
not have been mentioned.
c. The obligation to give a determinate thing includes that of delivering all of its accessions and accessories even if there stipulation
to the contrary.
d. The obligation to give a determinate thing does not include that of delivering all of its accessions and accessories.
40. Which of the following statements is correct?
I. Accessories refer to those which destined for the embellishment, use or their preservation of another thing or more importance, have
for their object the completion of the latter for which they are indispensable or convenient.
II. Accessions include everything which is produced by a thing, or which is incorporated or attached thereto, either naturally or artificially.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
41. The following are the kinds of fruits under the Civil Code, except
a. Natural fruits – Spontaneous products of the soil without the intervention of human labor.
b. Industrial fruits – Products of the soil through cultivation or human labor.
c. Civil fruits – Fruits as a result of civilization or fruit arising out of a juridical relation.
d. Commercial fruits – Fruits arising from commercial transaction.
42. In an obligation to do, what is the remedy of the creditor if the debtor fails to do the prestation?
a. Action for specific performance with damages.
b. Action for annulment of obligation with damages.
c. The creditor or third person may do it in a proper manner at the expense of the debtor.
d. Action for damages only to be awarded by the Court.
43. In an obligation to do whereby only the debtor can do the thing, what is the remedy of the creditor if the debtor fails to do the prestation?
c. The creditor or third person may do it in a proper manner at the expense of the debtor.
d. Action for indemnification for damages.
44. In an obligation to do, what is the remedy of the creditor in case the debtor did it in contravention of the tenor of the obligation or did it
poorly?
c. The creditor or third person may do it in a proper manner or it may be decreed that what had been poorly done be undone at the
expense of the debtor .
d. Action for damages only to be awarded by the Court.
45. In an obligation consisting in not doing, what is the remedy of the creditor in case the debtor does what has been forbidden him?
a. It shall be undone at the expense of debtor with no damages.
b. It shall be undone at the expense of debtor with indemnification for damages.
c. Action for specific performance with damages.
d. Action for rescission.
46. When does the obligor incur delay in an obligation to do something?
a. From the time the obligee demands judicially and extrajudicially the fulfillment of obligation.
b. From the time the obligee demands judicially the fulfillment of obligation.
c. From the time of the perfection of the contract.
d. From the fulfillment of resolutory condidition.
47. Delay can exist in the following obligations, except
a. Obligation to do

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b. Obligation to give
c. Obligation not to do
d. None of the above
48. Demand by the creditor shall not be necessary in order that delay may exist for the following, except
a. When the obligation or the law expressly so declares.
b. When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be
delivered or the service is to be rendered was a controlling motive for the establishment of the contract.
c. When there is unilateral obligation.
d. When demand would be useless, as when the obligor has rendered it beyond his power to perform.
49. In a reciprocal obligation, when does the other party incur delay?
a. From the moment one of the parties makes a demand.
b. From the moment one of the parties fulfills his obligation.
c. When both party do not comply with what is incumbent upon them.
d. When both party are not ready to comply in proper manner their obligations.
50. Default (Mora) of the part of the debtor is called
a. Mora solvendi
b. Mora accipiendi
c. Compensatio morae
d. Mora obligori
51. The following are the requisites in order that the debtor may be in default, except
a. There must be a complaint filed in court against the debtor.
b. The obligation must be demandable and already liquidated.
c. The debtor delays performance of the obligation.
d. The creditor demands the performance judicially or extrajudicially.
52. Which of the following is the effect of delay on the part of the debtor?
I. The debtor becomes liable for damages for the delay.
II. When it has for its object a determinate thing, the delay places the risk of the thing on the debtor.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
53. The following are the effects of the delay on the part of the creditor, except
a. The creditor becomes liable for damages.
b. The debtor may relieve himself of the obligation by the consignation of the thing.
c. The debtor bears the risk of the loss of the thing.
d. The responsibility of the debtor for the thing is reduced and limited to fraud and gross negligence.
e. All expenses for the preservation of the thing after the mora shall be chargeable to the creditor.
54. The benefits arising from default or delay may cease upon
a. Delay of the other party.
b. Rescission of the contract.
c. Payment of damages.
d. Renunciation of creditor or prescription.
55. Article 1170 of the Civil Code provides that “The obligor shall be liable for damages if in the fulfillment of obligation, he is guilty of
a. Injury
b. Fraud
c. Negligence
d. Delay
e. Contravention of the tenor of obligation
56. Which of the following statements pertain to “fraud”?
a. It is the failure to observe the protection of the interests of another person, that degree of care, precaution and vigilance which
the circumstances justly demand, whereby such person suffers injury.
b. It refers to the non-fulfillment of the obligation with respect to time.
c. It refers to the deliberate and intentional evasion of the normal fulfillment of obligations.
d. It refers to illicit act which impairs the strict and faithful fulfillment of the obligation or every kind of defective performance.
57. The debtor is not liable for damages in cases of contravention of tenor or delay when
a. It is malicious or intentional.
b. There is gross negligence.
c. It is due to fortuitous events.
d. It is due to force majeure and there is stipulation making the debtor liable even in such case.

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58. The following are the types of damages that may be awarded, except
a. Moral
b. Exemplary
c. Nominal
d. Temperate
e. Actual
f. Liquidated
g. Superficial
59. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for what type of fraud is void?
a. Future fraud
b. Past fraud or fraud already committed
c. Both future and past fraud
d. Neither future nor past fraud
60. Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be
regulated by the courts, according to the circumstances. What type of culpa is referred to by this provision of the Civil Code?
a. Culpa criminal
b. Culpa contractual
c. Culpa aquiliana
d. Culpa capa
61. In what type of culpa or negligence will the defense of the exercise of good father of the family in the selection of his employees by the
employer lie?
a. Culpa criminal
b. Culpa contractual
c. Culpa aquiliana
d. Culpa capa
62. A stipulation exempting liability for damages shall be valid for which of the following?
a. Gross negligence
b. Bad faith
c. Fraud
d. Simple negligence
63. It refers to the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the
persons, of the time and the place.
a. Fraud
b. Delay or default or Mora
c. Negligence or fault or culpa
d. Contravention of the tenor
64. If the law or contract does not state the diligence to be observed in the performance of the obligation, what degree of diligence shall be
observed?
a. Extraordinary diligence
b. Diligence of a father of a good family
c. Diligence of a good father of a family
d. Diligence of a good mother of a family
65. As a general rule, no person shall be responsible for those events which could not be foreseen, though foreseen, were inevitable or also
known as fortuitous events or force majeure. The following are the exceptions to the general rule, except
a. In cases expressly specified by law such as when the debtor incurs delay.
b. When there is stipulation that the obligor is still liable even in cases of fortuitous events.
c. When the nature of the obligation requires the assumption of risks.
d. When the fortuitous event is the proximate cause of the damage or injury.
66. The following are the requisites of fortuitous events to exempt the obligor from liability, except
a. The cause of the unforeseen and unexpected occurrence or the failure of the debtor to comply with his obligation must be
independent of the human will.
b. It must be impossible to foresee the event which constitutes the case fortuito or if it can be foreseen, it must be impossible to
avoid.
c. The occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner.
d. The obligor must participate in the aggravation of the injury resulting to the creditor.

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67. Which of the following presumptions are incorrect?
I. The receipt of the principal by the creditor, without reservation with respect to the interest, shall give rise to presumption that said
interest has been paid.
II. The receipt of a later installment of a debt without preservation as to prior installments, shall likewise raise the presumption that such
installments have been paid.
III. The receipts of the interest shall give rise to presumption that the principal has been paid.
a. I and II
b. III only
c. II and III
d. I and III
68. In order to satisfy their claims against the debtor, the creditor has the following successive rights, except
a. To file a criminal complaint against the debtor.
b. To levy by attachment and execution upon all the property of the debtor, except such as exempt by law from execution.
c. To exercise all rights and actions of the debtor, except such as are inherently personal to him.
d. To ask for the rescission of the contracts made by the debtor in fraud of his rights.
69. This action may be exercised by the creditor in the place of his negligent debtor in order to preserve or recover for the patrimony of the
debtor the product of such actions, and then obtain therefrom the satisfaction of his own credit.
a. Accion reindivicatoria
b. Accion subrogatoria
c. Accion pauliana
d. Accion publiciana
70. This action refers to the last recourse of the creditor to satisfy his claim. It refers to the right to set side or revoke or rescind the acts which
the debtor may have done to defraud him.
a. Accion pauliana
b. Accion reindivicatoria
c. Accion publiciana
d. Accion subrogatoria
71. Which of the following statements concerning rights acquired in virtue of an obligation?
a. As a general rule, they are not transmissible.
b. They are transmissible only if there is stipulation to that effect.
c. Subject to the provisions of laws, they are transmissible unless there is stipulation to the contrary.
d. They are always transmissible.
72. It refers to an obligation which contains no term or condition whatever upon which depends the fulfillment of the obligation contracted by
the debtor.
a. Conditional obligation
b. Pure obligation
c. Natural obligation
d. Civil obligation
73. The following obligations are demandable at once, except
a. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the
parties.
b. Pure obligation
c. Every obligation which contains a resolutory condition without prejudice to the effects of the happening of the event
d. Conditional obligation or obligation with a period.
74. It is an obligation which is subject to a condition.
b. Pure obligation
c. Natural obligation
d. Civil obligation
75. It refers to every future and uncertain event upon which an obligation or provision is made to depend.
a. Period
b. Condition
c. Provision
d. Term

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76. The following are considered conditions, except
a. If Miami Heat will become 2011-2012 NBA Champion.
b. If Ted Failon will pass the board exam.
c. Upon the death of Acer G. Asus.
d. If Vaio C. Lenovo will graduate in law school.
77. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be
a. Obligation with a condition
b. Pure obligation
c. Indivisible obligation
d. Obligation with a period
78. The following are the distinctions between suspensive and resolutory conditions, except
a. If the suspensive condition happens, the obligation arises while if the resolutory condition happens, the rights and obligations
already existing are extinguished.
b. In suspensive condition, the rights and obligations do not exist before the happening of the condition while in resolutory
condition, the rights and obligation already exist even before the happening of the condition.
c. Obligation subject to a suspensive condition is not demandable at one while obligation subject to resolutory condition is
demandable at once.
d. Suspensive condition is known as condition subsequent while resolutory condition is condition precedent.
79. The following are obligations subject to suspensive conditions, except
a. I will give you P100 if you pass the board exam.
b. You can use the car until JJ graduates.
c. He will dance if he wins in lotto.
d. She will work if Jollibee becomes number 1.
80. Which of the following statements pertain to a potestative condition?
a. It is one which depends upon the will of one of the contracting parties.
b. It is one which depends exclusively upon chance or other factors, and not upon will of the contracting parties.
c. It is one which depends upon the will of the contracting parties and other circumstances, including the will of a third person.
d. It is one which depends upon the arrival of a particular period.
81. Which of the following conditional obligations is void?
a. When the fulfillment of the suspensive condition depends upon the sole will of the debtor.
b. When the fulfillment of the suspensive condition depends upon the sole will of the creditor.
c. When the fulfillment of the suspensive condition depends upon the sole will of the third person.
d. When the fulfillment of the suspensive condition depends upon chance or other factors.
82. The following conditions shall annul the obligation which depends upon them, except
a. Impossible conditions
b. Suspensive conditions which depend upon chance and will of the debtor
c. Conditions contrary to good customs or public policy
d. Conditions prohibited by law
83. What is the effect of the condition not to do an impossible thing?
a. It shall be considered as having agreed upon.
b. The obligation will become null and void.
c. The obligation is subject to a condition.
d. The obligation is pure and demandable.
84. Which of the following statements are incorrect?
I. The condition that some event happen at a determinate time shall extinguish the obligation as soon as the time expires or if it has
become indubitable that the event will not take place.
II. The condition that some event will not happen at a determinate time shall render the obligation effective from the moment the time
indicated has elapsed, or if it has become evident that the event cannot occur.
a. Both I and II
b. Neither I nor II
c. I only
d. II only
85. An obligation to pay a sum of money is subject to the condition that a certain person shall arrive at a designated place in one year. This
obligation will be extinguished if
I. One year passes and he does not arrive at the place.
II. Such person dies before the lapse of one year and before arriving at such a place.
a. I only
b. II only

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c. Either I or II
d. Neither I nor II
86. An obligation to deliver a piece of land to X is subject to the conditio9n that he shall not marry within two years. This obligation shall
become effective and the land should be delivered to X if
I. Two years expire without X having married.
II. X enters priesthood before the two years expire.
a. I only
b. II only
c. Neither I nor II
d. Either I or II
87. What is the effect if the obligor voluntarily prevented the fulfillment of the condition of an obligation?
a. The obligation is extinguished.
b. The obligation remains to be subject to the condition.
c. The condition shall be deemed fulfilled and the obligation becomes demandable.
d. The obligation becomes with a period.
88. When shall the effects of a conditional obligation to give take effect?
a. Shall be given prospective effect once the condition has been fulfilled.
b. Shall retroact to the day of the constitution of the obligation once the condition has been fulfilled.
c. Shall not be given retroactive effect once the condition has been fulfilled.
d. Shall be given retroactive effect even if the condition is not fulfilled.
89. X sells a piece of land on January 1,2010 subject to a suspensive condition to A. Then, on October 4, 2010, X sells the land
unconditionally to B. The suspensive condition happens on December 25,2010. Who shall have the better right assuming there is neither
registration of the sale nor delivery of possession to either A or B?
a. B because the sale to him is unconditional.
b. B because his title is older being dated October 4,2010.
c. A because his title retroacts on January 1,2010 upon fulfillment of the suspensive condition on December 25,2010.
d. A because he is the first buyer.
90. In conditional reciprocal obligations to give, what is the treatment of the fruits and interests during the pendency of the condition?
a. They shall inure to the sole benefit of the creditor.
b. They shall inure to the sole benefit of the debtor.
c. They shall be deemed to have been mutually compensated.
d. They shall be forfeited in favor of the government.
91. In conditional unilateral obligation to give, what is the treatment of the fruits and interests during the pendency of the condition?
a. They shall inure to the sole benefit of the creditor in the absence of stipulation to the contrary.
b. They shall inure to the sole benefit of the debtor in the absence of stipulation to the contrary.
c. They shall be divided equally between the creditor and debtor.
d. They shall be forfeited in favor of the government.
92. In conditional obligation to do or not to do, what is the effect of the fulfillment of the condition?
a. There shall be retroactive effect to the day of the constitution of the obligation.
b. There shall be prospective effect from the moment the condition is fulfilled.
c. The stipulation of the parties shall not be considered.
d. The courts shall determine, in each case, the retroactive effect of the condition that has been complied with taking into account
the agreement of the parties.
93. Before the fulfillment or pendency of the suspensive condition, what shall the creditor may do?
a. Demand the specific performance of the obligation.
b. Charge damages and interests.
c. Demand the fruits and interests of the thing.
d. Bring appropriate actions for the preservation of his right.
94. During the pendency of the suspensive condition, the debtor has paid by mistake a sum of money. What is the remedy of the debtor?
a. The debtor has cannot recover the sum of money.
b. The debtor can recover the sum of money with interests if the creditor acted in bad faith.
c. The debtor can only recover the sum of money without interests even if the creditor acted in bad faith.
d. The debtor can only recover the sum of money with interests if the credited acted in good faith.
95. During the pendency of the suspensive condition, the debtor has delivered a determinate or specific thing by mistake. What is the remedy
of the debtor?

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a. Accion of indemnification if the thing is still with the creditor.
b. Accion reinvidicatoria if the thing is still with the creditor.
c. Accion publiciana if the thing is still with the creditor.
d. Accion possessoria if the thing is still with the creditor.
96. The following are the rules to be observed in case of the improvement, loss or deterioration of the thing during the pendency of the
condition in an obligation to give, except
a. If the thing is lost without the fault of the debtor, the obligation shall be extinguished.
b. If the thing is lost through the fault of he debtor, he shall be obliged to pay damages.
c. When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor.
d. If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the debtor.
e. If it is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary.
97. When the thing deteriorates through the fault of the debtor during the pendency of the condition in an obligation to give, what is the remedy
of the creditor?
a. He may only ask for the rescission of the obligation with indemnity for damages.
b. He may only ask for the performance of the obligation with indemnity for damages.
c. The debtor may choose between rescission of the obligation and its fulfillment with indemnity for damages in either case.
d. The creditor may choose between rescission of the obligation and its fulfillment with indemnity for damages in either case.
98. The thing is considered lost in any of the following instances, except
a. When it perishes.
b. When it goes out of commerce.
c. When it disappears in such a way that its existence is unknown or it cannot be recovered.
d. When it is a destroyed generic thing.
99. When the obligation is subject to resolutory condition or when the condition has for its purpose the extinguishment of the obligation to give,
what shall be the obligation of the parties upon the fulfillment of said condition?
a. They shall retain what they have received.
b. They shall file an action for damages.
c. They shall return to each other what they have received.
d. They shall rescind the obligation.
100. When the obligation is subject to resolutory condition or when the condition has for its purpose the extinguishment of the obligation to give,
what shall be the rule as regards to the fruits and interest of the thing to be returned?
a. The fruits shall be returned by the person who will make the restitution without deducting the expenses for the production,
gathering and preservation of the fruits.
b. The fruits shall be retained by the person who received the thing.
c. The fruits shall be returned by the person who will make the restitution with deduction for the expenses for the production,
d. The fruits shall be retained by the person who received the thing and shall be reimbursed for the expenses for the production,
101. In case of reciprocal obligations, can the injured party rescind the obligations in case one of the obligors should not comply with what is
incumbent upon him?
a. Yes if there is stipulation of the power to rescind.
b. No even if there is stipulation of the power to rescind.
c. Yes because the power to rescind obligations is implied in reciprocal ones.
d. No because the power to rescind obligations cannot be implied in reciprocal ones.
102. When one of the obligors committed breach of obligation in a reciprocal obligation, what shall be the remedy of the injured party?
a. The injured party may choose between the fulfillment and the rescission of the obligation with payment of damages in either
case.
b. The injured party may choose between the fulfillment and the rescission of the obligation without payment of damages in either
case.
c. The injured party may only rescind the obligation with damages.
d. The injured party may only ask for the fulfillment of obligation with damages.
103. When the injured party in a reciprocal obligation elected the fulfillment of the obligation with damages, can he still ask for the rescission of
the obligation?
a. No under any circumstances because these remedies are alternative.
b. Yes because there remedies are successive remedies available to the injured party.
c. No as a general rule because there remedies are alternative except where performance has become impossible or there are
insuperable and legal obstacle thereto.
d. Yes because the injured party can have them both.

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104. When the injured party in a reciprocal obligation elected the rescission of the obligation with damages, can he still ask for the fulfillment of
the obligation?
a. Yes because there remedies are successive remedies available to the injured party.
b. No but there are certain exceptions to the rule.
c. No because these are alternative remedies and the injured party cannot have both.
d. Yes because the injured party is protected by law.
105. It refers to a type of obligation which arises from the same cause and in which each party is a debtor and creditor of the other, such than
the obligation of one is dependent upon the obligation of the other.
a. Bilaterial obligations
b. Reciprocal obligations
c. Unilateral obligations
d. Multilateral obligations
106. Which of the following statements concerning reciprocal obligations is correct?
I. The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.
II. In case both parties have committed a breach of the obligation, the liability of the first infractor sall be equitably tempered by the
courts.
III. If it cannot be determined which of the parties first violated the contract, the same shall be deemed extinguished, and each shall bear
his own damages.
a. I, II and III
b. I and II
c. II and III
d. I and III
107. It is an obligation which is subject to a space of time which, exerting an influence on obligations as a consequence of a juridical act,
suspends their demandability or determines their extinguishment.
b. Obligation with a period
c. Pure obligation
d. Demandable obligation
108. The following statements concerning obligation with a period is correct, except
a. Obligations for whose fulfillment a day certain has been fixed, shall be demandable when that day comes.
b. Obligation with a resolutory period takes effect at once, but terminate upon arrival of the day certain.
c. A day certain is understood to be that which must necessarily come, although it may not be known when.
d. If the uncertainty consists in whether the day will come or not, the obligation is with a period.
109. The following are the distinctions between a condition and a period, except
a. A condition is an uncertain event while a period is an event that must necessarily come.
b. While a condition gives rise to an obligation or extinguishes one already existing, a period has no effect upon the existence of
obligation, but only its demandability or performance and thus, a period does not carry with it any retroactive effect.
c. A condition may refer to a past event and unknown to parties while a period always refers to the future.
d. A condition which depends exclusively on the will of the debtors does not annul the obligation but a period left to the debtor’s will
merely empowers the court to fix such period.
110. The following are the requisites of a period, except
a. It must be past.
b. It must be future.
c. It must be certain.
d. It must be possible.
111. Suspensive period and resolutory period are also known as
a. Both ex die
b. Both in diem
c. Ex die and in diem, respectively
d. In diem and ex die, respectively
112. Whenever in an obligation a period is designated, to whose benefit the period is presumed to have been established?
a. Creditor only
b. Debtor only
c. Both creditor and debtor
d. Neither creditor and debtor
113. If there is stipulation as to whose benefit the period is established, which of the following statements is incorrect?
a. The creditor cannot demand payment before the period stipulated.
b. The debtor cannot make an effective tender and consignation of payment before the period stipulated.

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c. The term is for the benefit of both debtor and creditor.
d. The term is for the benefit of the debtor.
114. In case there is stipulation as to whose benefit the period is established, which of the following statements is incorrect?
a. If it is for the benefit of the creditor only, he may demand performance at any time.
b. If it is for the benefit of the debtor only, he may oppose a premature demand for payment.
c. If it is for the benefit of the creditor only, the debtor cannot compel him to accept payment before the period expires.
d. If it is for the benefit of the debtor only, he cannot pay validly at any time before the period expires.
115. The following are the instances wherein the court may fix a period of an obligation with a period, except
a. If the obligation does not fixed a period, but from its nature and the circumstances it can be inferred that a period was intended.
b. If the period depends upon the sole will of the debtor.
c. In case of pure obligation, to prevent unreasonable interpretations of its immediate demandability.
d. If the obligation is pure, simple, unconditional and payable on demand.
116. The following are the instances wherein the debtor shall lose every right to make use of the period, except
a. When after the obligation has been contracted, he becomes insolvent and he gives a guaranty or security for the debt.
b. When he does not furnish to the creditor the guaranties or securities which he has promised.
c. When by his own acts he has impaired said guaranties or securities after their establishment, and when through a fortuitous
event they disappear, unless he immediately gives new one equally satisfactory.
d. When the debtor violates any undertaking, in consideration of which the creditor agreed to the period.
e. When the debtor attempts to abscond.
117. The following statements pertain to alternative obligations. Which is incorrect?
I. A person alternatively bound by difference prestations shall completely performed one of them.
II. The creditor cannot be compelled to receive part of one and part of the other undertaking.
a. I only
b. II only
c. Neither I nor II
d. Both I and II
118. The following are the distinctions between alternative obligation and facultative obligation, except
a. In alternative obligation, several objects being due, the fulfillment of one is sufficient, determined by the choice of the debtor who
generally has the right of election while in facultative obligation, only one thing is due, but the debtor has reserved the right to
substitute in with another.
b. In alternative obligation, the loss of one of the things due affects the obligation while in facultative obligation, the loss of that
which may be given as substitute does not affect the obligation.
c. In alternative obligation, the right of choice may be granted to the creditor while in facultative obligation, the right of choice can
never be granted to creditor.
d. In alternative obligation, the loss of one of the things due extinguishes the obligation while in facultative obligation, the loss of
that which is due as the object of the obligation will not extinguish such obligation.
119. It is an obligation where the debtor has to perform several prestations and it is extinguished only by the performance of all of them.
a. Alternative obligations
b. Conjunctive obligations
c. Facultative obligations
d. Composite obligations
120. Who has the right of choice in case of alternative obligations?
a. Creditor, unless it has been expressly granted to the debtor.
b. Debtor, unless it has been expressly granted to the creditor.
c. Always with the debtor.
d. Always with the creditor.
121. The following are the limitations of the right of choice in alternative obligations, except
a. The debtor cannot choose unlawful undertakings.
b. The debtor cannot choose part of one prestation and part of another.
c. The debtor cannot choose impossible undertakings or those which could not have been the object of the obligation.
d. The right to choose is divisible.
122. In alternative obligations, when shall the choice of prestation produce effect?
a. From the moment it is exercised by the debtor.
b. From the moment it is communicated to the creditor.
c. From the moment the creditor consented to the choice.
d. From the constitution of the obligation.
123. In alternative obligations, what is the effect of notice of choice of prestation to the creditor?
a. The obligations remain to be alternative.

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b. The selection or choice is still revocable.
c. The obligation is converted into a simple obligation.
d. The obligation becomes a facultative obligation.
124. In alternative obligations, when shall the debtor lose the right of choice and thus, the obligation become simple?
a. When he becomes insolvent.
b. When he attempts to abscond.
c. When among the prestations whereby he is alternatively bound, only one is practicable.
d. When he was prevented by the creditor.
125. What is the remedy of the debtor if through the creditor’s act the debtor canoe make a choice according to the terms of alternative
obligations?
a. The debtor may file an action for indemnification.
b. The debtor may rescind the contract with damages.
c. The debtor may ask for fulfillment of obligation with damages.
d. The debtor may compel the creditor to perform the prestation.
126. In case the debtor has the right of choice in alternative obligations and through the fault of the debtor one of the things which are
alternatively the object of the obligation has been lost, what shall be the right of creditor?
a. He may demand the performance of the remaining prestation with damages.
b. He may demand the performance of the remaining prestation without damages.
c. He has the right to indemnity for damages.
d. He has the right to demand the value of the thing lost plus damages.
127. In case the debtor has the right of choice in alternative obligations and through the fault of the debtor all the things which are alternatively
the object of the obligation have been lost or the compliance of the obligation has become impossible, what shall be the right of creditor?
a. He shall have the right to indemnity for the value of the lost object with the largest value plus damages.
b. He shall have the right to indemnity for the value of the lost object with the smallest value plus damages.
c. He shall have the right to indemnity for the value of the last object plus damages.
d. He shall have the right to indemnity for the value of the any object plus damages.
128. In case the debtor has the right of choice in alternative obligations and through the fault of the debtor only one object remains of the things
which are the objects of alternative obligation and before its performance, it has been lost due to fortuitous event, what shall be the right of
the creditor?
a. He may demand the value of any object lost due to debtor’s fault.
b. He may demand indemnification for damages.
c. He may demand the value of the last object lost due to fortuitous event.
d. He has no right to demand anything.
129. In case the debtor has the right of choice in alternative obligations and through fortuitous event only one object remains of the things which
are the objects of alternative obligation and before its performance, it has been lost due to the fault of the debtor, what shall be the right of
the creditor?
a. He shall have the right to indemnity for the value of the lost object with the largest value plus damages.
b. He shall have the right to indemnity for the value of the lost object with the smallest value plus damages.
c. He shall have the right to indemnity for the value of the last object plus damages.
d. He shall have the right to indemnity for the value of the any object plus damages.
130. In case the debtor has the right of choice in alternative obligations and through fortuitous event all the objects of alternative obligation have
been lost, what shall be the right of the creditor?
a. He shall have no right.
b. He shall have the right to indemnity for the value of the lost object with the largest value plus damages.
c. He shall have the right to indemnity for the value of the lost object with the smallest value plus damages.
d. He shall have the right to indemnity for the value of the last object plus damages.
131. When the choice has been expressly given to the creditor, the obligation shall cease to be alternative from the day when the selection has
been communicated to the debtor. Until then, the responsibility of the debtor when the right of choice has been granted to the creditor shall
be governed by the following rules, except
a. If one of the things is lost through a fortuitous event, he shall perform the obligation by delivering that which the creditor should
choose from among the remainder, or that which remains if only one subsists.
b. If the loss of one of the things occurs through the fault of the debtor, the creditor may claim any of those subsisting, or the price
of that which, through the fault of the former, has disappear, with a right to damages.
c. If all the things are lost through the fault of the debtor, the choice by the creditor shall fall upon price of any one of them, also with
indemnity for damages.
d. If all the things lost through fortuitous event, the debtor shall be liable for damages.
132. It is an obligation wherein only one prestation has been agreed upon but the obligor may render another in substitution.
a. Alternative obligations
b. Conjunctive obligations

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c. Facultative obligations
d. Composite obligations
133. What is the effect of the loss or deterioration of the thing intended as a substitute in a facultative obligation before the substitution?
a. The debtor becomes liable for damages.
b. The creditor may rescind the obligation with damages
c. The debtor shall indemnify the creditor.
d. The debtor shall not be liable.
134. What is the effect of the loss of the thing intended as a substitute in a facultative obligation after the substitution?
a. The debtor shall not be liable for the loss.
b. The obligation is extinguished.
c. The debtor shall be liable for the loss on account of his delay, negligence or fraud.
d. The creditor has no right against the debtor.
135. What is the effect of the loss of the principal object in a facultative obligation before the substitution?
a. The debtor is liable if the loss is due to fortuitous event.
b. The obligation is extinguished if it is due to fortuitous event.
c. The debtor is not liable even if the lost is due to his fault.
d. The obligation is not extinguished.
136. What is the effect of the loss of the principal object in a facultative obligation after the substitution?
a. The debtor is liable if the loss is due to fortuitous event.
b. The debtor is liable for damages if the loss is due to his fault.
c. The obligation is extinguished because of the lost of the object.
d. The obligation remains to exist.
137. In a facultative obligation, to whom shall the right of choice belong?
a. Always creditor
b. Always debtor
c. Debtor unless granted to the creditor
d. Creditor unless granted to the debtor
I. Joint obligation is one in which each debtor is liable for the entire obligation and each creditor is entitled to demand the whole
obligation.
II. Solidary obligation is one in which each of the debtors is liable only for a proportionate part of the debti and each creditor is entitled
only to a proportionate share of the credit.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
139. The concurrence of two or more creditors or of two or more debtors in one and the same obligations implies that the obligation is
a. Joint
b. Solidary
c. Either joint or solidary if silent
d. Neither joint or solidary
140. The following are the instances when the obligation is considered solidary, except
a. When the obligation expressly so states
b. When the obligation is indivisible
c. When the law requires
d. When the nature of the obligation requires
141. The following terms refer to solidary obligation, except
a. Mancomunada solidaria
b. Joint and several
c. Pro rata
d. In solidum
142. The following are the principal consequences of the joint character of the obligation, except
a. The demand by one creditor upon one debtor produces the effects of default only with respect to the creditor who demanded and
the debtor on whom the demand was made, but not with respect to the others.
b. The interruption of prescription by the judicial demand of one creditor upon a debtor, does not benefit the other creditors nor
interrupt the prescription as to other debtors.

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c. The vices of each obligation arising from the personal effect of a particular debtor or creditor do not affect the obligation or rights
of the others.
d. The insolvency of a debtor increases the responsibility of his co-debtors, nor does it authorize a creditor to demand anything
from his co-creditors.
143. The following statements pertaining to joint and solidary obligations are correct, except
a. If the division is impossible, the right of the creditors may be prejudiced only by their collective acts, and the debt can be
enforced only by proceeding against all the debtors and if the latter should be insolvent, the others shall not be liable for his
share.
b. The indivisibility of an obligation gives rise to solidarity.
c. The solidarity of an obligation does not imply indivisibility.
d. Solidary may exist although the creditors and the debtors may not be bound in the same manner and by the same period and
conditions.
144. It is a solidarity that exists among the creditors.

a. Mixed solidarity
b. Active solidarity
c. Passive solidarity
d. Simple solidarity
145. The following statements pertaining to solidary obligation are correct, except
a. Each one of the solidary creditors may do whatever may be useful to the others, but not anything which may be prejudicial to the
latter.
b. A solidary creditor can assign his rights without the consent of the others.
c. The debtor may pay any one of the solidary creditors.
d. If any demand, judicial or extrajudicial, has been made by any one of the solidary creditors, payment should be made to him.
146. The following acts made by any of the solidary creditors or with any of the solidary debtors shall extinguish the obligation, except
a. Novation
b. Compensation
c. Extenstion of time for payment
d. Confusion
e. Remission
147. The following are the effects of novation, compensation, confusion or remission made by any of the solidary creditors or with any of the
solidary debtors, except
a. As between creditors and debtors, any of these acts will extinguish the obligation, so that no creditor may thereafter sue any
debtor, except in case of novation, where there may be no change or only a partial change of parties, but in this last case, it is on
longer the original obligation, but the new one, which would be sued upon.
b. As among co-creditors, the act of any of them in extinguishing the obligation with respect to the debtor or debtors, does not
prejudice the rights of the other creditors to recover their respective share in the obligation from the creditor who effected the
novation, compensation, confusion or remission.
c. As among co-debtors, the co-debtor as to whom the obligation was extinguished cannot recover from his other co-debtors more
than their respective shares in whatever he may have given up or lost as the consideration for the extinguishment of the
obligation.
d. In case of remission, the co-debtor can recover anything from the other debtors.
148. The following statements concerning the payment of solidary obligation is correct, except
a. Payment made by one of the solidary debtors extinguishes the obligation and if two or more solidary debtors offer to pay, the
creditor may choose which offer to accept.
b. He who made the payment may claim from his co-debtors only the share which corresponds to each with the interest for the
payment already made.
c. If payment is made before the debt is due, no interest for the intervening period may be demanded.
d. When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor paying the obligation,
such shall be borne alone by the paying debtor and the other co-debtors shall not share in the loss.
149. Which of the following statements is incorrect?
a. Payment by a solidary debtor shall not entitle him to reimbursement from his co-debtors if such payment is made after the
obligation has prescribed or become illegal.
b. The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from his
responsibility towards the co-debtors, in case the debt had been totally paid by anyone of them before the remission was
effected.
c. The remission of the whole obligation, obtained by one the solidary debtors, entitles him to reimbursement from his co-debtors.
d. If the thing has been lost or if the prestation has become impossible without the fault of the solidary debtors, the obligation shall
be extinguished.

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I. If the thing has been lost or if the prestation has become impossible and there was fault on the part of any of solidary debtors, all shall
be responsible to the creditor, for the price and the payment of damages and interest, without prejudice to their action against the
guilty or negligent debtor.
II. If through a fortuitous event, the thing is lost or the performance has become impossible after one of the solidary debtors has incurred
in delay through judicial or extrajudicial demand upon him by the creditor, any of the solidary debtors shall be responsible to the
creditor for the price and the payment of damages and interests, without prejudice to their action against the debtor guilty of delay.
III. If the thing is not lost or the prestation has not become impossible, but there is delay, fraud, fault or negligence, or some other breach
of the obligation, the creditor may also recover indemnity for damages for any of the solidary debtors but the guilty debtor cannot be
made to shoulder, as part of the indemnity, the shares of the co-debtors in the original obligation.
a. I only
b. II and III
c. I and III
151. The following are the defenses that may be availed of by the solidary debtor in actions filed by the creditor, except
a. Defenses which are inherent from the nature of the obligation
b. Defenses personal to defendant-debtor
c. Defenses personal to other debtors for the whole obligation
d. Defenses personal to other debtors as regards that part of the debt for which the latter are responsible
152. The following statements pertaining to divisible and indivisible obligations are correct, except
a. Divisibility or indivisibility of the obligation refers to the object or thing and not to the performance of the obligation.
b. A divisible obligation is one which is susceptible of partial performance; that is, the debtor can legally perform the obligation by
parts and the creditor cannot demand a single performance of the entire obligation.
c. An indivisible obligation, whatever may be the nature of the thing which is the object thereof, refers to one which can be validly
performed in parts.
d. The thing or object may be divisible, yet the obligation may be indivisible.
153. The following statements pertaining to joint indivisible obligation are correct, except
a. To enforce a joint indivisible obligation, there is necessity of collective fulfillment and the action must be against all the debtors.
b. In case of non-performance by any of the debtors, the obligation is converted into a liability for losses and damages, which is
divisible.
c. The debtors who may have been ready to fulfill their promises shall not contribute to the indemnity beyond the corresponding
portion of the price of the thing or of the value of the service in which the obligation consists.
d. A joint indivisible obligation can be compelled by specific performance if anyone of the debtors does not or cannot comply with
this undertaking.
154. What is the remedy of the creditor in case one of the debtors does not comply with his undertaking in a joint indivisible obligation?
a. Action for specific performance
b. Ask third person to fulfill the obligation at the expense of all the debtors
c. Ask for indemnity for losses and damages
d. Ask the other co-debtors to fulfill the entire obligation
155. The following are the rules concerning the divisibility or indivisibility of an obligation, except
a. Obligations to give definite things and those which are not susceptible of partial performance shall be deemed divisible.
b. When the obligation has for its object the execution of a certain number of days of work, the accomplishment of work by metrical
units, or analogous things which by their nature are susceptible of partial performance, it shall be divisible.
c. Even though the object or service may be physically divisible, an obligation is indivisible if so provided by law or intended by the
parties.
d. In obligations to do, divisibility or indivisibility shall be determined by the character if the prestation in each particular case.
156. It is an obligation which has an accessory undertaking to assume greater liability in case of breach.
a. Obligation with a condition
b. Obligation with a penal clause
c. Obligation with a period
d. Obligation with a substitute
157. The following statements concerning obligations with a penal clause are correct, except
a. In obligations with a penal clause, the penalty shall substitute the indemnity for damages and the payment of interests in case of
noncompliance.
b. In case of breach of obligations with a penal clause, damages and interests may be demanded in addition to the penalty if there
is stipulation to that effect.
c. The penalty stipulated must not be contrary to law, morals, or public order to be enforceable.
d. Obligations with a penal clause must be construed liberally.
158. The following are the rules to be observed in applying obligations with a penal clause, except
a. Proof of actual damages suffered by the creditor is necessary in order that the penalty may be demanded.

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b. The judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the
debtor and even if there has been no performance, the penalty may also be reduced by the courts if it is iniquitous or
unconscionable.
c. The nullity of the penal clause carries with it that of the principal obligation.
d. The nullity of the principal obligation carries with it that of the penal clause.
159. The following are the modes of extinguishment of obligations: (No-Co-Me-Re-Pa-Lo-Pre-Re-Ful-An)
a. No – Novation
b. Co – Compensation
c. Me – Merger
d. Re – Remission
e. Pa – Payment or Performance
f. Lo – Loss of the thing due
g. Pre – Prescription
h. Re – Rescission
i. Full – Fulfillment of Resolutory Condition
j. An – Annulment
160. It is a mode of extinguishing obligation which refers to the fulfillment of the prestation due.
a. Novation
b. Payment
c. Compensation
d. Merger
161. The following are the requisites of a valid payment, except
a. The payment must be in accordance with the obligation.
b. The person paying as well as the one receiving payment should have the requisite capacity.
c. It should be made by the creditor to the debtor.
d. It should be made at the right time and place.
162. The following statements concerning payment are correct, except
a. Payment means only delivery of money but not performance, in any other manner, of an obligation.
b. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been
completely delivered or rendered, as the case may be.
c. If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and
complete fulfillment, less damages suffered by the oblige.
d. When the oblige accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or
objection, the obligation is deemed fully complied with.
163. Is the creditor required to accept payment or performance by a third person who has no interest in the fulfillment of the obligation?
a. Yes because it is provided by law.
b. Yes because it is for the benefit of the creditor.
c. No, unless there is stipulation to the contrary.
d. No, under any circumstances.
164. What is the right of a third person who pays for the debtor without the knowledge or against the will of the debtor?
a. The third person may demand the whole amount paid from the debtor.
b. The third person cannot recover any amount.
c. The third person may compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty or
penalty.
d. The third person may recover only insofar as the payment has been beneficial to the debtor.
165. The following statements concerning payment made by a third person who does not intend to be reimbursed by the debtor are correct,
except
a. It is deemed to be a donation.
b. It requires the debtor’s consent.
c. The payment is in any case valid as to the creditor who has accepted it.
d. The payment will subrogate the third person with creditor’s rights.
I. In obligations to give, payment made by one who does not have the free disposal of the thing die and capacity to alienate it shall not
be valid.
II. Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered or insofar as the
payment has been beneficial to him.
a. Neither I nor II
b. Both I and II
c. I only
d. II only

Page 18 of 25
167. The following are the persons to whom payment shall be made, except
a. Person in whose favor the obligation has been constituted
b. Any third person
c. Successor of interest of creditor
d. Any person authorized by the creditor to receive payment
168. Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the creditor. Such benefit to the creditor
need not be proved in the following cases, except
a. If after the payment, the third person acquires the creditor’s rights.
b. If the third person is not authorized by the creditor.
c. If the creditor ratifies the payment to the third person.
d. If by the creditor’s conduct, the debtor has led to believe that the third person had authority to receive payment.
169. The following are the instances wherein payment made to a third person is valid, except
a. When in good faith, the debtor pays to one in possession of the credit.
b. When, without notice of the assignment of the credit, the debtor pays to the original creditor.
c. When the debtor was judicially ordered to retain the debt.
d. When the payment to a third person redounded to the benefit of the creditor.
170. The following statements concerning payment are correct, except

a. Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
b. The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be of the same value as, or
more valuable than that which is due.
c. In obligations to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the obligee’s
will.
d. When the obligation consists in the delivery of an indeterminate or generic thing, whose quality and circumstances have not been
stated, the creditor can demand a thing of superior quality but the debtor can deliver a thing of superior quality.
171. It refers to a special form of payment whereby a property is alienated to the creditor in satisfaction of a debt in money.
a. Application of payment
b. Payment by cession
c. Dation in payment
d. Tender of payment and consignation
172. Dation in payment as a mode of extinguishing obligation shall be governed by the provisions of
a. Law of Barter
b. Law of Obligation
c. Law of Sales
d. Law of Credit Transactions
173. Who shall shoulder the extra-judicial expenses requirement by the payment?
a. Debtor
b. Creditor
c. Government
174. The following statements concerning partial payment are correct, except
a. The creditor cannot be compelled partially to receive the prestations in which the obligation consists except when there is
stipulation to the contrary.
b. The debtor may be required by the creditor to make partial payments.
c. When the debt is in part liquidated and in part unliquidated, the creditor may demand the payment of the former without waiting
for the liquidation of the latter.
d. When the debt is in part liquidated and in part unliquidated, the debtor may effect the payment of the former without waiting for
the liquidation of the latter.
175. It refers to such currency which in a given jurisdiction can be used for the payment of debts, public or private, and which cannot be refused
by the creditor.
a. Legal tender
b. Foreign currency
c. Local currency
d. International currency
176. The following are the rules concerning the payment of debts in money, except
a. The payment of debts in money shall only be made in Philippine peso.
b. The payment of debts in money shall be made in the currency stipulated.
c. In case the delivery of the currency stipulated is not possible, the payment of debts in money shall be made in the currency
which is legal tender in the Philippines.
d. The delivery of promissory notes payable to order or bills of exchange or other mercantile documents shall produce the effect of
payment only when they have been cashed or when through the fault of the creditor they have been impaired.

Page 19 of 25
e. In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of
the establishment of the obligation shall be the basis of payment, unless there is an agreement to the contrary.
177. Where shall payment of an obligation be made?
a. Wherever the thing might be at the moment the obligation was constituted.
b. Place designated in the obligation.
c. Domicile of the debtor.
d. Domicile of the creditor.
178. Where shall payment of an obligation to deliver a determinate thing be made if there is no express stipulation as to the place of payment?
b. Place designated by third party.
179. Where shall payment of an obligation to deliver an indeterminate thing be made if there is no express stipulation as to the place of
payment?
b. Place designated by third party.
180. The following are the special forms of payment, except
a. Dation in payment
b. Application of payments
c. Payment by cession
181. It refers to the designation of the debt which is being paid by a debtor who has several obligations of the same kind in favor of the creditor
to whom payment is made.
182. Who has the right of application of payments?
a. Debtor
b. Creditor
c. Both debtor and creditor
d. Neither debtor nor creditor
I. Unless the parties so stipulate, or when the application of payment is made by the party for whose benefit the term has been
constituted, application shall not be made as to debts which are not yet due.
II. If the debtor accepts from the creditor a receipt in which an application of the payment is made, the former cannot complain of the
same, unless there is a cause for invalidating the contract.
a. Both I and II
b. Neither I nor II
c. I only
d. II only
184. The following are limitations to the preferential right of the debtor to choose the debt to which his payment is to be made, except
a. If the debtor owes two debts, one for P50 and another for P200, and he makes a payment of P50, he cannot choose to apply it to
the P200 debt because the creditor cannot be compelled to accept partial payment.
b. If there is only one obligation bearing stipulated interest, the debtor cannot apply the payment to the interest before the capital.
c. The debtor cannot apply the payment to a debt that is not yet liquidated.
d. He cannot choose a debt with a period for the benefit of the creditor, when the period has not yet arrived.
e. When there is an agreement as to the debts which are to be paid first, the debtor cannot vary the agreement.
185. The following are the rules for application of payments, except
a. If the debt produces interest, payment of the principal shall not be deemed to have been made until the interests have been
covered.
b. When the payment cannot be applied in accordance with the preceding rules, or if application cannot be inferred from other
circumstances, the debt which is most onerous to the debtor, among those due, shall be deemed to have been satisfied.
c. If the debts due are of the same nature and burden, the payment shall be applied to all of them proportionately.
d. If at the time of payment the debtor does not exercise his right to apply it to any of his debts, the application made by the creditor
shall be followed even if the debtor does not consent to such application.
186. It refers to a special type of payment which involves the voluntary abandonment of the universality of the property of the debtor for the
benefit of his creditors, in order that such property may be applied to the payment of the credits.

Page 20 of 25
187. The following are the distinctions between dation in payment and payment by cession, except
a. Whereas payment by cession transfers the ownership over the thing alienated to the creditor, payment dation in payment, only
the possession and administration (not ownership) are transferred to the creditors, with an authorization to convert the property
into cash with which the debts shall be paid.
b. While dation in payment may totally extinguish the obligation and release the debtor, the assignment only extinguishes the
credits to the extent of the amount realized from the properties assigned, unless otherwise agreed upon.
c. While dation in payment involves only some specific thing, payment by cession involves all the property of the debtor.
d. While in dation in payment, the transfer is only in favor of one creditor to satisfy a debt, in payment by cession, there are various
creditors.

I. Tender of payment is the manifestation made by the debtor to the creditor of his desire to comply with his obligation with the offer of
immediate performance.
II. Consignation is the deposit of the object of the obligation in a competent court in accordance with rules prescribed by law.
a. I only
b. II only
c. Neither I nor II
d. Both I and II
189. What is the remedy of the debtor if the creditor to whom tender of payment has been made refuses without just cause to accept it?
a. Consign the thing or sum due
b. Payment by cession
c. Dation in payment
d. Application of payments
190. If the creditor to whom tender of payment has been made refuses without just cause to accept it, the debtor shall be released from
responsibility by the consignation of the thing or sum due. Consignation without tender of payment shall release the debtor from
responsibility in the following instances, except
a. When the creditor is absent or unknown, or does not appear at the place of payment
b. When he is capacitated to receive the payment at the time it is due
c. When, without just cause, he refuses to give a receipt
d. When two or more persons claim the same right to collect
e. When the title of the obligation has been lost
191. In order that consignation may be effective the debtor must comply first with the following requisites, except
a. There debt must be due.
b. The consignation was made because of some legal cause provided by law.
c. Previous notice of the consignation has been given to the persons interested in the performance of the obligation.
d. The amount or thing was not placed at the disposal of the court.
e. After the consignation, the persons interested were notified thereof.
192. Who shall shoulder the expenses of a valid consignation?
a. Debtor
b. Creditor
c. Government
I. Once the consignation has been duly made, the debtor may ask the judge to order the cancellation of the obligation.
II. Before the creditor has accepted the consignation, or before a judicial declaration that the consignation has been properly made, the
debtor may withdraw the thing or the sum deposited, allowing the obligation to remain in force.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
194. The following are effects once the consignation has been accepted by the creditor or the court has declared that it has been validly made,
except

Page 21 of 25
a. The debtor is released in the same manner as if he had performed the obligation at the time of the consignation, because this
produces the same effect as a valid payment.
b. The accrual of interest on the obligation is suspended from the moment of consignation.
c. The deterioration or loss of the thing or amount consigned occurring without fault of the debtor must be borned by the creditor,
because the risks of the thing are transferred to the creditor from the moment of deposit.
d. Any increment or increase in value of the thing after the consignation inures to the benefit of the debtor.
195. The following are the effects if, after the consignation has been made, the creditor should authorize the debtor to withdraw the same,
except
a. The creditor shall lose every preference which he may have over the thing.
b. The co-debtors shall be released.
c. The guarantors and sureties shall be released.
d. The obligation shall be extinguished.
196. As a general rule, the loss of the thing due on account of fortuitous event shall extinguish the obligation . The following are the exceptions
to the general rule, except
a. When the law expressly provides that the debtor shall be liable even if the loss is due to fortuitous event.
b. When by express stipulation, the obligor is made liable even if loss occurs through fortuitous events.
c. When the nature of the obligation requires the assumption of risk.
d. When the fault or negligence of the debtor concurs with the fortuitous event in causing the loss.
e. When the loss occurs before the debtor has incurred in delay.
f. When the debtor has promised to deliver the same thing to two or more different parties.
g. When the obligation to deliver a determinate object arises from a criminal act.
I. An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed due to
fortuitous event.
II. In an obligation to deliver a genering thing, the loss or destruction of anything of the same king extinguishes the obligation.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
198. The following statements concerning the loss of the object of the obligation, except
a. The courts shall determine whether, under the circumstances, the partial loss of the object of the obligation is so important as to
extinguish the obligation.
b. The debtor in obligations to do shall also be released when the prestation becomes legally or physically impossible with the fault
of the obligor.
c. When the service has become so difficult as to be manifestly beyond the contemplation of the parties, the obligation may also be
released therefrom, in whole or in part.
d. When the debt of a thing certain and determinate proceeds from a criminal offense, the debtor shall not be exempted from the
payment of its price, whatever may be the cause for the loss, unless the thing having been offered by him to the person who
should receive it, the latter refused without justification to accept it.
199. What is the presumption whenever the thing is lost in the possession of the debtor in the absence of earthquake, flood, storm or other
natural calamity?
a. The loss was due to force majeure.
b. The loss was due to fortuitous event.
c. The loss was due to the debtor’s fault.
d. The loss was due to the creditor’s fault.
200. It is a mode of extinguishing obligation which is an act of liberality, by virtue of which, without receiving any equivalent, the creditor
renounces the enforcement of the obligation, which is extinguished in its entirety or in that part or aspect of the same.
a. Compensation
b. Confusion
c. Remission
d. Novation
201. What is the nature of condonation or remission?
a. It is generally gratuitous and requires the acceptance by the obligor.

Page 22 of 25
b. It is essentially gratuitous and requires the acceptance by the obligor.
c. It is generally onerous and requires the acceptance by the obligor.
d. It is essentially onerous and requires the acceptance by the obligor.
202. The following are the requisites of remission or condonation, except
a. The debt must be existing and demandable at the time the remission is made.
b. The renunciation of the debt must be gratuitous.
c. The debtor must accept the remission.
d. The remission or condonation must be expressly made and not impliedly.
203. What is the implication of the delivery of a private document evidencing a credit, made voluntarily by the creditor to the debtor?
a. It implies that the voluntary return of the private document is presumed to be by reason of payment of the debt.
b. It implies that the voluntary return of the private document is presumed to be by reason of payment of the debt.
c. It implies that the voluntary return of the private document is presumed to be by reason of novation of the debt.
d. It implies that the voluntary return of the private document is presumed to be by reason of confusion of the debt.
204. The following statements concerning condonation or remission are correct, except
a. Whenever the private document in which the debt appears is found in the possession of the debtor, it shall be presumed that the
creditor delivered it voluntarily, unless the contrary is proved.
b. The renunciation of the principal debt shall extinguish the accessory obligations.
c. The renunciation of the accessory obligation shall extinguish the principal debt.
d. It is presumed that the accessory obligation of pledge has been remitted when the thing is pledged, after its delivery to the
creditor, is found in the possession of the debtor, or of a third person who owns the thing.
205. It refers to the meeting in one person of the qualities of creditor and debtor with respect to the same obligation.
a. Compensation
b. Condonation
c. Confusion
d. Novation
206. The following are the requisites of merger or confusion, except
a. It must be gratuitous and requires acceptance by the obligor.
b. It must take place between the creditor and the principal debtor.
c. The very same obligation must be involved, for if the debtor acquires rights from the creditor, but not the particular obligation in
question, there will be no merger.
d. The confusion or merger must be total or as regards the entire obligation.
207. The following statements concerning merger or confusion are correct, except
a. The effect of merger is to extinguish the obligation.
b. Merger which takes place in the person of the principal debtor or creditor benefits the guarantor.
c. Merger which takes place in the person of the guarantor extinguishes the principal obligation.
d. Confusion does not extinguish a joint obligation except as regards the share corresponding to the creditor or debtor in whom the
two characters concur.
208. It is a mode of extinguishing to the concurrent amount, the obligations of those persons who in their own right are reciprocally debtors and
creditors of each other.
a. Novation
b. Compensation
c. Merger
d. Remission
209. Which of the following statements pertain to facultative compensation?
a. It is a compensation which takes place by operation of law because the requisites are present.
b. It is a compensation which can be claimed by one of the parties who, however, has the right to object to it, such as when one of
the obligations has a period for the benefit of one party alone and who renounces that period so as to make the obligations due.
c. It is a compensation wherein the parties agree to compensate their mutual obligations even if some requisite is lacking.
d. It is a compensation decreed by the court in a case where there is a counterclaim.
210. The following are the requisites of legal compensation or compensation by operation of law, except
a. Each one of the obligors be bound principally, and that he be at the same time a principal creditor of the other.
b. Both debts consist in a sum of money, or if the things due are consumable, they be of the same kind, and also of the same
quality if the latter has been stated.
c. Both debts must be due.
d. Both debts must be unliquidated and nondemandable.
e. That over neither of them there be any retention or controversy, commenced by third persons and communicated in due time to
the debtor.
211. Which of the following debts can be the subject of compensation?
a. Valid debts only
b. Valid, rescissible, voidable and unenforceable debts only

Page 23 of 25
c. Valid, rescissible and voidable debts only
d. Valid and rescissible debts only
212. The following statements concerning compensation are correct, except
a. The guarantor may set up compensation as regards what the creditor may owe the principal debtor.
b. Compensation may be total or partial and when the two debts are of the same amount, there is a total compensation.
c. The parties cannot agree upon compensation of debts which are not yet due.
d. If one of the parties to a suit over an obligation has a claim for damages against the other, the former may set it off by proving his
right to said damages and the amount thereof.
e. When one or both debts are rescissible or voidable, they may be compensated against each other before they are judicially
rescinded or avoided.
213. The following are the instances wherein the debtor may still set up compensation, except
a. When the creditor communicated the assignment of his right to the third persons to the debtor and the latter did not consent
thereto.
b. When the debtor has consented to the assignment of rights made by a creditor in favor of a third person and the assignor
reserved his right to the compensation at the time he gave his consent.
c. When the assignment is made without the knowledge of the debtor.
d. When the debtor has consented to the assignment of rights made by a creditor without reservation as to his right to
compensation.
214. The following are the instances wherein the compensation may not take place even if all the requisites for compensation concur, except
a. When there is a renunciation of the effect of compensation by a party.
b. When one of the debts arises from a depositum or from the obligations of a depositary or of a bailee in commodatum.
c. When the one of the creditor has a claim for support due by gratuitous title.
d. When one of the debts consists in civil liability arising from a penal clause.
e. When one of the debts pertain to taxes.
f. When the debts are payable in different places.
215. The following statements pertaining to compensation are correct, except
a. Compensation takes place by operation of law even though the debts may be payable at difference places, but there shall be an
indemnity for expenses of exchange or transportation to the place ofpayment.
b. If a person should have against him several debts which are susceptible of compensation, the rules on the application of
payments shall apply to the order of the compensation.
c. When all the requisites for compensation are present, compensation takes effect by operation of law.
d. When all the requisites for compensation are present, both debts to the concurrent amount are extinguished only if the creditors
and debtors are aware of the compensation.
216. Novation is the extinguishment of an obligation by the substitution or change of the obligation by a subsequent one which extinguishes or
modifies the first.
a. Compensation
b. Novation
c. Condonation
d. Merger
217. Novation of obligations may take place by the following, except
a. Changing their object or principal conditions
b. Substituting the persons of the debtor
c. Subrogating a third person in the rights of the creditor
d. Changing their term or period
218. Which of the following statements concerning the type of novation is incorrect?
a. Subjective or personal novation is the modification of the obligation by the change of the subject; it is passive if there is
substitution of the debtor, and it is active when a third person is subrogated in the rights of the creditor.
b. Objective or real novation is the change of the obligation by substituting the object with another or changing the principal
conditions.
c. There is total novation when there is only a modification or change in some principal conditions of the obligation.
d. There is implied novation when there is such an incompatibility between the old and the new obligations that they cannot stand
together.
219. The following are the requisites of novation, except
a. There must be a previous void obligation.
b. There must be agreement of all parties to the new contract.
c. There must be extinguishment of the old contract.
d. The new obligation must be valid.

Page 24 of 25
220. Which of the following statements concerning novation is incorrect?
a. In order that an obligation may be extinguished by another which substitutes the same, it is imperative that it be so declared in
unequivocal terms.
b. Novation is never presumed.
c. There is implied novation if the old and new obligations are on every point incompatible with each other.
d. Novation must only be expressed and not implied.
221. Novation which consists in substituting a new debtor in the place of the original one, one may be made even without the knowledge or
against the will of the latter, but not without the consent of the creditor. Which of the following statements concerning the two forms of this
novation is correct?
I. In Expromission, the initiative for the change does not emanate from the debtor and may be made even without his knowledge, since
it consists in a third person assuming the obligation and it logically requires the consent of third third person and the creditor.
II. In delegaction, the debtor (delegante) offers and the creditor (delegatario) accepts a third person (delegado) who consents to the
substitution, so that the consent of these three is necessary.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
222. In what type of novation consisting of substitution of a new debtor will the insolvency of new debtor or nonf-fulfillment of the obligation shall
not give rise to any liability on the part of the original debtor?
a. In expromission because the debtor did not have the initiative in making the change, which might have been made even without
his knowledge.
b. In delegaction because the creditor consents to the substitution.
c. In either expromission or delegacion.
d. Neither expromission nor delegacion.
223. In delegacion, will the insolvency of the new debtor, who has been proposed by the original debtor and accepted by the creditor, revive the
action of the latter against the original obligor?
a. No, under any circumstances because the obligation is already extinguished.
b. Yes when said insolvency was already existing and of public knowledge, or known to the debtor, when he delegated his debt.
c. Yes even of the creditor has knowledge that the new debtor was insolvent at the time of delegation.
d. No because the debtor has not given his consent to the delegation.
224. The following statements concerning novation are correct, except
a. When the principal obligation is extinguished in consequence of a novation, accessory obligations may subsist only insofar as
they may benefit third person who did not give their consent.
b. If the new obligation is void, the original obligation was extinguished, unless the parties intended that the former should subsist in
any event.
c. The novation is void if the original obligation was void, except when annulment may be claimed only by the debtor, or when
ratification validates acts which are voidable.
d. If the original obligation was subject to a suspensive or resolutory condition, the new obligation shall be under the same
condition, unless it is otherwise stipulated.
225. Which of the following statements concerning subrogation is correct?
a. Subrogation of a third person in the rights of the creditor is either legal or conventional.
b. Legal subrogation is not presumed, except in cases expressly mentioned in this Code.
c. Conventional subrogation must be clearly established in order that it may take effect.
d. Conventional subrogation of a third person requires the consent of the original parties but not of third person.
226. It refers to the transfer of all the rights of the creditor to a third person, who substitute him in all his rights.
a. Novation
b. Compensation
c. Confusion
d. Subrogation
227. The following are the instances wherein legal subrogation is presumed, except
a. When a creditor pays another creditor who is preferred, even without the debtor’s knowledge.
b. When a stranger pays a creditor without the knowledge of the debtor.
c. When a third person, not interested in the obligation, pays with the express or tacit approval of the debtor.
d. When, even without the knowledge of the debtor, a person interested in the fulfillment of the obligation pays, without prejudice to
the effects of confusion as to the latter’s share.

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I. Subrogation transfers to the person subrogated the credit with all the rights thereto appertaining, either against the debtor or against
third persons, be they guarantors or possessors of mortgages, subject to stipulation in a conventional subrogation.
II. A creditor, to whom partial payment has been made, may exercise his right for the remainder, and he shall be preferred person who
has been subrogated in his place in virtue of the partial payment of the same credit.
a. Both I and II
b. Neither I nor II
c. I only
d. II only

Page 26 of 25

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DE LA SALLE LIPA

College of Business, Economics, Accountancy and Management

1. Article 1156 of the Civil Code defines an obligation as a

DLSL CPA Board Operation – Business Law

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144. It is a solidarity that exists among the creditors.

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170. The following statements concerning payment are correct, except

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188. Which of the following statements is incorrect?

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