JIM PETERICK G.

SISON
QUIZ – CIVIL LAW REVIEW II
May 1, 2021

1. A owed two debts which are both due. One debt was incurred in 2005, but it is non-
ineterest bearing, while the second debt was incurred in 2010 with interest. How may A pay
his two debts to B applying the rules of application of payment? Please explain.

A, in applying the rules of application of payment, must pay his second debt first since it is the most
onerous.

Under the rules of application of payment, in case the due and demandable debts are of different
natures, application shall be made to the most onerous debt.

In the problem given, A owed two debts which are both due and demandable. Both debts are both
of different natures. The second debt is the most onerous since it is with interest.

Therefore, A, applying the rules of application of payment, must pay his second debt first since it is
the most onerous.

2. Give the two (2) diffirences between tender of payment and consignation.

a. Tender of Payment is the act of offering the creditor what is due him together with a demand that
the creditor accept the same.

Moreover, Tender of payment is the antecedent of consignation, that is, an act preparatory to the
consignation, which is the principal, and from which are derived the immediate consequences
which the debtor desires or seeks to obtain.

Tender of payment may be extrajudicial.

b. Consignation is the act of depositing the thing due with the court or judicial authorities whenever
the creditor cannot accept or refuses to accept payment. It generally requires a prior tender of
payment.

Consignation is necessarily judicial.

3. True or False

a. The legal effect of refusal of the creditor without just cause to accept the tender of payment will
release the debtor from responsibility. - FALSE

b. Consignation does not presuppose the existence of a debt. - FALSE

c. In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind
extinguishes the obligation.- FALSE

4. Give the five (5) essential requisites for consignation.

a. existence of a valid debt

b. valid prior tender, unless tender is excused

c. prior notice of consignation

d. actual consignation

e. subsequent notice of consignation

5. Give the two (2) cases when obligation to deliver a specific thing is extin guished by its
loss/destruction.

a. When by law or stipulation, the obligor is liable even for fortuitous events, the loss of the thing
does not extinguish the obligation, and he shall be responsible for damages.

b. when the nature of the obligation requires the assumption of risk.

6. Give the two (2) elements fo a condonation under the first paragraph of Art. 1270.

a. essentially gratuitous, and requires the acceptance by the obligor.

b. It may be made expressly or impliedly.

7. A made a check payable to bearer and handed the check to B who delivered it to C. C
finally delivered it back to A. What is the mode of extinguishment of the obligation? Please
explain.

This is a case of merger. Merger is the meeting in one person of the qualities of creditor and debtor
with respect to the same obligation.

Under the law, the obligation is extinguished from the time the characters of creditor and debtor
are merged in the same person.

Since the case at bar is a merger, the obligation of A is extinguished.

8.Give the five (5) requisites of legal compensation,

a. That each one of the obligors be bound principally, and that he be at the same time a principal
creditor of the other;

b. That 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. That the two debts be due;

d. That they be liquidated and demandable;

e. That over neither of them there be any retention or controversy, commenced by third persons
and communicated in due time to the debtor.

9. Give the rule on whether and when the defence of compensation may be set up in the
following cases:

a. when the assignment of rights made by the creditor is made with the consent of the debtor

- Compensation cannot be set up (because there has been consent and, therefore, a waiver).

b. when the assignment of rights is made with the knowledge but without the consent of the debtor
- Compensation can be set up regarding debts previous to the cession or assignment. This refers to
debts maturing before the assignment (that is, before the NOTICE); hence here, legal compensation
has already taken place.

c. when the assignment of rights is made without the knowledge of the debtor

- Debtor can set up compensation as a defense for all debts maturing PRIOR to his knowledge of the
assignment (whether the debts matured before or after the assignment).

10. A common carrier transported gasoline for the government for P50,000. The Auditor
General however, wanted to deduct from said amount, the damages the carrier had caused
to the gasoline, but said damages were still undetermined and unliquidated. The common
carrier objected. Is the set-off proper? Pelase xplain..

No. The set-off is not proper.

Jurisprudence dictates that there can be no set-off or compensation when the alleged damage
caused is still undetermined and unliquidated.

In the problem given, the damages caused by the common carrier were still undetermined and
unliquidated. Therefore, the set- off is not proper.

11. Give the three (3) kinds of novation under the Civil Code.

a. Changing their object or principal conditions;

b. Substituting the person of the debtor;

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

12. Give the three (3) requisites of expromission.

a. Initiative of a third person

b. The new creditor and creditor must consent

c. The old debtor must be released from his obligation.

13. Give the two (2) requisites of delegacion.

a. initiative from the old debtor

b. all parties concerned must consent/ agree

14. Give the two (2) kinds of subrogation of a third person in the rights of the creditor.

15. Define contract under the Civil Code.

A contract is a meeting of minds between two persons whereby one binds himself, with respect to
the other, to give something or to render some service.

16. Give the three (3) essential elements of a contract.

a. consent
b. subject matter

c. cause or consideration

17. Give the three (3) stages of a contract.

a. preparation

b. perfection

c. consummation

d. execution

18. Give the three (3) basic principles affecting contracts and state each principle.

a. Principle of Freedom- Under this principle, the contracting parties may establish such
stipulations, clauses, terms and conditions as they may deem convenient, provided they are not
contrary to law, morals, good customs, public order, or public policy.

b. Principle of Mutuality of Contracts- Under this principle, the contract must bind both contracting
parties, its validity or compliance cannot be left to the will of one of them.

c. Principle of Relativity- Under this principle, contracts are generally effective only between the
parties, their assigns, and their heirs.