EDUARDO L.

JOSON MEMORIAL COLLEGE

LAW ON OBLIGATIONS
MID TERM EXAMINATION
BSA 1A

Multiple Choice. Choose the best answer.

1. On March 1, 2020, A binds himself to pay B P100,000 at 12% annual interest payable on March 1,
2021. One of the following is false.
a. B cannot demand payment before March 1, 2021.
b. The period is for the benefit of the debtor.
c. B cannot validly refuse payment by A before March 1,c. B cannot validly refuse payment by
A before March 1,2021.
d. The period is for the benefit of the creditor.

2. A obliges himself to pay B P100,000 on demand. Which statement is false.

a. B can demand payment from A after a reasonable time from the promise date.
b. A cannot pay B in the absence of any demand from B.
c. The period is for the benefit of the debtor.
d. The period is for the benefit of the creditor.

3. “The debtor shall lose every right to make use of the period” means
a. The obligation is extinguished.
b. The term is disregarded, obligation becomes demandable.
c. There is a need to wait for the period to come.
d. The debtor cannot be obliged to pay and the creditor cannot be compelled to accept
payment.

4. E owes F P100,000 payable on September 20, 2021. In January 29, 2021, E become insolvent.
a. F can immediately demand payment even if E gives security.
b. F cannot immediately demand payment even if E cannot offer security.
c. There is a need for judicial declaration of E;s solvency.
d. E shall again have the benefit of the period if he gives guaranty to secure the debt.

5. One of the following may cause for the lost of the debtor’s right to make use of the period. Which is
not?
a. When the debtor becomes insolvent after the constitution of the debt.
b. When the debtor fails to give a security for the obligation.
c. When after giving a security, the same is lost or impaired due to debtor’s fault.
d. When the debtor attempts to abscond.
e. None of the above.

6. In Facultative obligation, the right of choice may be given to

a. Debtor or creditor b. Debtor only c. Creditor only d. Neither debtor nor creditor
7. X sold to Z a 42- inch Sony CTV for P70,000 payable in ten (10) equal monthly installment. The TV
was made as security for the debt. Shortly after delivery of the TV, a storm destroyed the house and TV
of Z. Which statement is false?
a. Z must still pay the balance since the obligation is not extinguished.
b. The whole balance becomes due and demandable.
c. The balance will not be due If Z can substitute equally satisfactory security.
d. The obligation is extinguished, security disappeared by fortuitous event.

8. A obliged himself to give B his determinate chicken, or his particular turkey, or his specific duck on
B’s 18th birthday.
a. Delivery of the duck extinguishes the obligation
b. Delivery of the three prestations will extinguish the obligation.
c. Delivery of part of the chicken, and part of the turkey shall extinguish the obligation.
d. Delivery of part of all the three animals will extinguish the obligation.

9. In the preceding problem, if all the prestations promised by A were lost without the fault of A,
a. The obligation is extinguished.
b. A and B should agree on another object to replace the lost ones.
c. B has the right to demand the value of the last thing lost plus damages.
d. A should pay B the value of all the prestations that were lost due to A’s fault.

10. A obliged to give B a cow, or a carabao or a buffalo on B’s 50 th birthday. Which is false?
a. The right of choice belongs to A only
b. The right of choice belongs to B only
c. The right of choice belongs to A and B
d. The right of choice may be given to B.

11. In the above problem, If all these three prestations are lost due to fortuitous event before B’s 50 th
birthday and before A has made the choice, Which is correct?
a. The obligation of A is extinguished.
b. The obligation is not extinguished.
c. B may compel A to pay the value of any of the three prestations.
d. B may compel A to pay the value of the last animal which was lost.

12. I(n facultative obligation, if it is impossible to give the principal thing

a. The substitute shall be given.
b. The substitute is not obliged to be given.
c. The principal is to be given.
d. Another principal is to be given.

13. A obliged to give B his dog or his cat. After deciding to give his dog to B, the dog died due to A’s
fault.
a. The obligation is extinguished. c. A can no longer choose to give B his cat instead.
b. The obligation is not extinguished. d. B can demand for the value of the dog plus damages.
14. Before substitution in a facultative obligation, if the substitute thing is lost due to the debtor’s fault
a. The principal obligation is extinguished.
b. Debtor is liable for damages.
c. The value of the substitute becomes due.
d. The principal thing must still be given.

15. After substitution in a facultative obligation, if the substitute thing is lost due o the fault of the
debtor.
a. The obligation is extinguished.
b. Debtor is liable for damages.
c. The value of the substitute thing must be given.
d. The principal thing must be given.

16. A will give B his computer but he may give B his television as substitute. Before substitution, the
television is lost due to A’s fault.
a. The obligation of A is extinguished.
b. Debtor A is liable for damages.
c. The value of the television must be given with damages.
d. The computer must still be given.

17. Each debtor is bound to render compliance of the entire obligation.

a. Alternative b. Joint c. Facultative d. Solidary

18. Each creditor has the right to demand payment of the entire obligation.
a. Alternative b. Joint c. Facultative d. Solidary

19. In a joint obligation, “joint” means all of the folloing, except

a. To each his own b. Mancumunada c. Joint and severally d. Pro rata

20. In a solidary obligation, “solidary” means all of the following, except

a. In solidum b. Jointly and severally c. Mancomunada d. Individually & collectively

21. Which is false? An obligation is solidary

a. When stipulated in the obligation.
b. As a general rule.
c. When the law states solidarity.
d. When the nature of the obligation requires solidarity.

22. A promissory note was signed by A, B and C, as “ We promise to pay X, Y and Z, solidary creditors,
P90,000 on January 31, 2021.
a. X can collect P10,000 each from A, B, and C.
b. Y can collect P30,000 from A. Y will give P10,00to X and P10,000 to Z.
c. Z can collect P90,000 from C. C will ask reimbursement P30,000 each from A and B.
d. A can be obliged by any of Z, Y and Z to pay the entire obligation of P90,000.
23. Which is false? When an obligation is joint
a. Debt shall be divided into as many shares as there are creditors and debtors.
b. The credit or debt shall be distinct from each other.
c. In bringing the action in court, the rules of Court governing the multiplicity of suit will be
followed.
d. Any creditor can demand compliance of the entire obligation from any debtor.

24. Which is false? When an obligation is joint

a. A joint creditor cannot act in representation of the others.
b. A joint debtor cannot be compelled to answer for the liability of the others.
c. Each debtor, insofar as the creditor or creditors are concerned is the debtor of the entire
obligation.
d. Every debtor is obliged to pay only his share in the obligation.

25. A, B, and C are solidary debtors of D for P120,000. If A becomes insolvent

a. D can collect from A, B, and C P40,000 each.
b. D can collect from any among A, B or C the whole P120,000.
c. D can collect from B or C P60,000 each.
d. D can collect from B and C P40,000 each.

26. A promissory note was signed by A, B and C as follows: “I promise to pay X, Y and Z the amount of
P60,000 on January 30, 2021.
a. X can collect the whole amount of obligation from B.
b. C is liable to pay any of the creditors the whole amount of P60,000.
c. A is liable to pay Z the amount of P30,000.
d. B can be compelled to pay X, Y and Z, P20,000 each

27. A, B and C, solidary debtors are obliged to pay X, Y and Z, solidary creditors the amount of P120,000.
Upon maturity of the obligation, X demanded payment from C. Knowing that as a solidary debtor, he is
obliged to pay the whole amount of the obligation, C paid P120,000 to Z.
a. The whole obligation is extinguished.
b. Payment must be made to any of the solidary creditors.
c. The obligation of C is to pay X only.
d. A is relieved from his obligation to X, Y and Z.

28. A, B and C are solidarily obliged to pay X and Z P300,000. X makes a demand from B.
a. B must pay X, P300,000.
b. B must pay X or Z, P300,00
c. The obligation of B is to pay X P150 only
d. A, B, or C may pay P300,000 to either X or Z.

29. Both principal obligation and penal clause can be enforced.

a. Subsidiary
b. Joint
c. Principal
d. Solidary
30. X obliged himself to give Y his favorite pet dog on January 31, 2021. If X fails to do so, he must give
Y P25,000. After demand by Y, X failed to deliver the dog.
a. X is liable to pay P25,000 penalty to Y for breach of contract.
b. X is liable to pay P25,000 penalty plus damages to Y for breach of contract.
c. X is liable to pay P25,000 penalty plus damages and interest to Y for breach of contract.
d. X is liable to pay P25,000 penalty and to deliver the dog to Y

31. Which statement is false? In obligation with a penal clause

a. When principal obligation is void, the penal clause is void.
b. When the penal clause is void, the principal obligation also becomes void.
c. When principal obligation is valid and the penal clause is also valid, both are to be enforced.
d. When the penal is valid and the principal clause is void, the penal clause shall not be
enforced.

32. X owes Y P5,000 payable on January 31, 2021. Z, a third person, pays Y without X’s consent.
a. Z can ask reimbursement from X was benefited by the payment.
b. Z can not ask for reimbursement because the payment was made without the consent of X.
c. Since the payment was made without the consent of X, it may be considered as a donation.
d. X is obliged to reimburse Z for the payment made by the latter with interest.

33. Dation in payment

a. Payment in kind b. Governed by law on sales c. Dacion en pago d. All of the above

34. Debtor transfers all his properties that are not subject to execution in favor of his creditors so that
the latter may sell them and apply the proceeds to their credit.
a. Dation in payment c. Tender of payment and consignation
b. Payment by cession d. Barter

35. Which is a characteristic of dacion en pago?

a. Delivery transfers ownership.
b. Generally affects all properties of the debtor.
c. More than one creditor is required.
d. Full or partial insolvency is required.

36. The act of depositing the thing or amount due with the proper court when the creditor refuses to
accept tender of payment without just cause.
a. Cession in payment c. Dation in payment
b. Consignation d. Application of payment

37. X is obliged to give Y a Toyota car. On due date, X tenders payment to Y but the latter refused for no
reason at all.
a. X’s obligation is extinguished.
b. X should keep the car until Y is ready to accept delivery.
c. X should make a valid consignation of the car so that the obligation may be extinguished.
d. None of the above.
38. The Loss of the determinate thing caused by fortuitous event shall extinguish the obligation,
except
a. When the debtor is at fault.
b. When the law provides otherwise.
c. When the nature of the thing requires the assumption of risk.
d. When parties stipulated otherwise.
e. None of the above.
f. All of the above.

39. A specific thing is lost due to fortuitous event. Generally this will cause the extinguishment of the
obligation. Which of the following is the exception to the rule?
a. When the debtor Fraud, mistake, or delay in the performance of the obligation.
b. When the debtor violates the tenor of the obligation.
c. When the debtor promised to deliver the specific thing to two or more persons with different
interest.
d. None of the above.

40. As a general rule, loss of the thing because of fortuitous event or without fault of the obligor
extinguished the obligation, except
a. When the nature of the obligation requires the assumption of risk.
b. In an obligation to give a generic thing.
c. When stipulated in the obligation.
d. When the law states otherwise
e. All of the above
f. None of the above.

41. Gratuitous abandonment by the creditor of his right in an obligation

a. Confusion b. Compensation c. Novation d. Condonation

42. A owes B two (2) sacks of rice. B owes A two (2) sacks of corn. There is no compensation because
a. Each one as obligors and creditors of each other must be bound principally.
b. If the things are consumable, both debts must be of the same kind and quality.
c. The two things must be due.
d. Both debts must be liquidated and demandable.

43. When the principal object or condition of the obligation is changed, there is
a. Novation b. Confusion c. Compensation d. Condonation

44. Debtor is changed on the initiative of the original debtor

a. Delegacion b. Subrogacion c. Conjugation d. Expromission

45. A third person offers to take the place of the debtor and accepted by the creditor.
a. Subrogation b. Delegacion c. Expromission d. Condonation

46. Novation where there is change of the debtor and object of the obligation.
a. Personal novation b. Real novation c. Mixed novation d. Reformation of condition
47. X owes Y P100,000 due on September 30 2021. X and Y agreed to subject the obligation to a 12%
interest but shall be due on March 31, 2021.
a. Personal Novation b. Real novation c. Mixed novation d. Reformation of condition.

48. D owes C P100,000. O approached C and assumed the obligation of D to C. Which is not correct?
a. D’d obligation to C is extinguished because C consented to the novation.
b. If O becomes insolvent, C can collect from D.
c. When C consented to the novation, the previous obligation is totally extinguished.
d. None of the above.

49. X owes YP100,000 due on June 30, 2021. X delegates his obligation to Z which Y consented. Which
statement Is NOT correct?
a. X’s obligation to Y is extinguished because Y consented to the novation.
b. If Z, later becomes insolvent, Y can collect from X.
c. Y can collect from X if at the time of delegacion, X already knew that Z is insolvent.
d. Y can still collect from X whether Z is solvent or insolvent.

50. A is indebted to C for P20,000. X is the guarantor of A. C is also indebted to A for P12,000. How
much will X be liable as guarantor, if B sues A and A cannot pay?
a. P12,000 b. P20,000 c. P8,000 d. Nothing

51. D is indebted to C for P30,000. X is a third person who voluntarily paid said obligation to C without
the consent D. How much may X claim as reimbursement from D?
a. P30,000 c. Nothing because there was no consent of D.
b. P 30,000 plus legal interest. d. Nothing because the payment of X was deemed a donation

52. A owes B P50,000. Due on Jun. 30, 2021. S who is not a party to the said contract without the
consent and against the will of A assumed the obligation. By mistake, S paid the obligation to B on Jan.
30, 2021, when the prevailing rate of interest was 12% per annum
a. S can ask reimbursement from A in the amount of P50,000 plus 12% interest From Jan. 30,
2021 to Jun. 30, 2021.
b. S can ask reimbursement from A in the amount of P50,000
c. S cannot ask reimbursement from A because the payment of S is without the consent and
against the will of A.
d. S can ask refund from B because he cannot collect from A.

53. On May 1, 2019, A sold to B a Determinate Honda Car. Payment of the price and the delivery of the
car were set on May 31, 2019. On May 10, A delivered the car to B who immediately paid the price of
the car to A. Between May 11 and May 30, should there be any returning of the car and of the price
paid?
a. No, the contract has been perfected and it cannot be subsequently changed by either or both
of the parties.
b. No, the subsequent actions of the parties showed that both implicitly agreed in changing of
the date from May 31 to May 10.
c. Yes, B believed that the obligation was already due and demandable on May 10 when in fact
it was not.
d. Yes, both parties were unaware of the period.
.