CPA Review School of the

Philippines Manila
OBUGATIONS DODela Cruz

1. The following are the elements of an obligation, except

a Active and passive subjects b. Efficient cause c. Prescription d. Vinculum

2. A lawful and voluntary act resulting to a benefit, except

a. Negotiorum gestio b. Solutio indebiti c. Quasi-contract ./ d. Quasi-delict

3. The right of the creditor that is enforceable against anybody is, what kind of right?
a. Personal b. Moral c. Natural - d. Real

4. The following are the requisites of an obligation, exc t

a Passive and active subjects b. Prestation c. Efficient cause d. Demand

5. The right of the creditor that is or.9'able against_a definite debtor is

a Real right b. Natural right c. Moral right d. Personal right

6. The person in whose favor the obligation is constituted

a. Obligor b. Obligee c. Passive subject d. Debtor

7. Synonymous to obligee
1. <:reditor 2. Active 3. Debtor 4. Passive subject
a 1 and 2 · subject c:2 and 3 d. 3 and 4
b. 1 and 4

8. The person who has the duty of giving, doing or not doing
a. Obligee b. Obligor c. Active subject d. Creditor

9. Synonymous to
obligor 2. Active subject 3. Debtor 4. Passive subject
1.) <:reditor b. 1and 4 c. 2 and 3 d. 3 and 4
a. 1 and 2

10. Unkss the law or the pulatioo of the parties ruirc another stan<iard of care, every person obliged to give
something is also obliged to take care of it with the proper diligence
a Observing utmost care c. Of a father of a good family
b. Observing extraordinary care d.Observing ordinary diligence

11. Ordinary diligence is

a. Diligence of a good father of a c. Diligc:mce required by law
family d. Diligence of a father of a good family
b. Extraordinary diligence

12. The creditor has a right to the fruits of the thing

a. From the time the obligation to deliver it c. From the time there is meeting of the minds
arises d. From the perfection of the contract
b. From the time the fruits have been delivered

13. From the time the fruits have been delivered, the creditor shall acquire
a. Real right b. Personal1ight c. Moral right d. Inchoate right

14. If A sells to B a fountain pen, the giving by A to B of the fountain pen is

a. Actllal tradition b. Constructive delivery c. Symbolical tradition d. Traditio longa-manu

15. A was employed as professional driver of B Transit Bus owned by C In the course of his work, A hit a concrete post
causing serious injury to passenger W and pedestrian Y. The victims sued the driver and the owner of the bus for
damages. Which of the following statements is correct?
a C is not liable if<: can prove that he exercised the diligence of a good father of a family in the.
selection and supervision of his employees
b. The conviction of A in a criminal cas makes <: liable for damages arising from criminal act
c. The liability of C shall cease if the driver A is acquitted inthe criminal case
d. .The guilt of driver A must be established beyond reasonable doubt to make <: liable

1 16. Ajuridical necessity to give, to do or not to do

BL - 76 - 01
1
 a. Civil obligation b.Natural obligation c. Moral obligation d. Social obligation

17. They give a right of action to compel their performance

a civil obligation b. moral obligation c. natural obligation d. Social obligation

BL - 76 - 01
1
 18. The obligee has a right to enforce the obligation against the obligor in a court_oflaF
A a civil obligation b. moral obligation c. natural obligation d. social obligation

c 19. This is based on eg_uity_and tice

a. civil obligation b. moral obligation c. natural obligation d. social obligation

A 20. The object or subject matter of the obligation

a. Prestation b. Vinculum c. Active subject d. Passive subject

r 21. The efficient cause or juridical tie why the obligation e.x.ists
a. Activ snbject b. Passive Subject c. Prestatioo d Vinculum

22. The duty not to recover what has voluntarily been paid although payment was no longer required
a Civil obligation b. Natural obligation c. Moral obligation d. Juridical obligation

A . 23. The following are sources of obligations derived from law, cept
a. contracts b. quasi-contracts c. delicts.... d. quasi-delicts

24. The duty to pay taxes and to support one's family are obligations arising from
a. Law b.Contracts c. Quasi-contracts d. Delicts

(h 25. The obligation ofhusband and wife to render mutual help and support arises from
a. contract b. law c. quasi-contract d. quasi-delict

B 26. A supports B, a minor, because B's father refuses to support B. The father is obliged to reimburse A. The source of
obligation is
a. COI).tract b. quasi-contract ..... c. delict d. quasi- delict
'
27.. A juridical relation resultiag from a lawful, voluntary, and unilateral act and which has for its purpose the payment of
indemnity to the end that no one shall be unjustly enriched or benefited at the expense of
another. a.Contract · b.Quasi-contract c. Delict
d. Quasi-delict

28. W
hen a person voluntarily takes charge of another's abandoned bus.ines s or property without the owner's authority
where reimbursement must be made for necessary and useful eA-penses.
..
a Quasi-contract b. Quasi-delict c. Negotiorum gestio d. Solutio indebiti

29. When something is received when there is no right to demand it , and it was unduly delivered·thru mistake, the
.
a. Quasi-contract b. Quasi-delict c. Negotiorum gestio d. Solutio indebiti

D 30. - A quasi-contract is an implied contract

- A defendant who is acquitted in a criminal case is no longer liable civilly
a. true, true b. true, false c. false, true d. false, false

31. Tort or culpa aquil iana is

a Quasi-contract b. Quasi-delict c. Negotiorum gestio d. S0lutio indebiti

32. A fault or act or omission of care which causes damage to .another, there being no pre-existing contractual relations
between the parties
a. Quasi-contract b. Quasi-deli ct c. Negotiorum gestio d. Solutio indebiti

fl, 33. Omission of the diligence which is required by the circwnstances of person, place and time
a Ignorance b. Negligence c. Impotence d. Insanity

A 34. Which of the following is a civil obligation?

a. A obliges himselfto payB PlO,OOO on October 30,2011 /
b. Cis a debtor ofD for P20,000 due on September 30,.1995.
c. The obligation of a husband and wife to observe fidelity
d. The obligation of a catholic to bear mass every Sunday

35. Specific performance may not be possible in this civil obligation

a. A, a painter, obliges himself to paint the portrait of B on January 8, 2011
b. C, a farmer, obliges himself to give his only cow to Don February 14, 2011
BL-76 - 01
2
c. E, a veterinarian, obliges himself to give one ofhis dogs to F on May 1,2011
d G, a registrar of deeds, obliges himself to effect registration ofH's parcel ofland on June 20, 2011

BL-76 - 01
2
 36. Upon the proposal of a third person, a new debtor substituted tl:.e original debtor with ut the latter's consent.
The creditor accepted the substitution. Later, however, the new clebtor became ihsolvent and defaulted in his
obligation. What is the effect of the, new debtor's default upon the original deptor?
a. The original debtor is freed of liability since novation took place and this relieved him of his
obligation
b. The original debtor shall pay or perform the obligation wib recourse to the new debtor
c. The original debtor remains liable since he gave no consent to the substitution
d. The original debtor shall pay or perfonn 50% of the obligation to avoid unjust t1nrichment on his part

37. Lennie bought a business class ticket from Alta Airlines. As sh1 checked in, the man ger downgraded her
to economy on the ground that a Col).gressman had to be accommodated in the business class. Lennie
suffered discomfort and embarrassment of the downgrade. She sued the airlines for quasi-delict but Alta
Airlines countered that, since her travel was governed by a contract between them, no quasi-delict could
arise. Is the airline correct? '
a No the breach of contract may in fact be tortious as when it is tainted as in this case with arbitrariness,
gross bad faith and malice
b. No, denying Lennie the comfort and amenities of the b1JSiness class as provided in the ticket is a
tortious act
c. Yes, since the facts show a breach of contract, not a quasi-delict
d. Yes, since quasi-delict presupposes the absence of a pr existirig contractual relation between the
parties

38. Rudolf borrowed PlM fr9m Rodrigo a!!..d F mando ho acted a;; solidary pr ditors. When the loan mature
Rodrigo wrote a letter to Rudolf demanding payment of the loan directly to him. Before Rudolf could
comply, Fernando went to see hin1 personally to collect and be ·paid him. Did Rudolf make a valid pa)'Jllent? .
a. No, since Rudolf should have split the payment betvllRodrigo and Fernando
b. No, since Rodrigo, the other solidary creditor, already made a prior demand for payment from
Rudolf
c. Yes, since the payment covers the whole obligation
d Yes, since Fernando was a solidary creditor, payment to him extinguished 'the obligation

39. Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat dockeCjl in Subic. Before they
could deliver it, however, the boat sank in a storm. The con1lact provides that fortuitous event shall not
exempt Roy and Carlos from their obligation. Owing to the loss of the motor boat, such obligation is
deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary?
a. Neither sohdary nor joint since they cannot waive tt 1e defense of fortuitous event to which they
are entitled
b. Solidary or joint upon the discretion of Sam
c. Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat
d. Joint since the conversion of their liability to one of indemnity for damages made it joint

40. A natural obligati on under the New Civil Code of the Philippim:s is one which
a. Ibe ol;>Jigor .illts _m_pral qbligatiq_n to.do, .Qthe!)Vise. e 1titling the opligee to damages
b. . Refers to an obligation in writing to do or not to do
c. The oblige may enforce through the court if violated by the obligor
d. Cannot be judicially enforced but authorizes the obligee to retain the obligor's payment or
performance"'

41. When one exercises a right recognized by law, knowing that h<: thereby causes an injustice to another, the
latter is entitled to recover damages . This is known as the principle of ·
a. Res ipsa loquitur c. Vicarious liahility
b. Damnton absque injuria d. Abuse of rigt!ts

42. The source of obligations which is a rule of conduct, ju st and oblipttory, promulgated by legitimate authorities for
D common good, benefit and observance
a. Contracts b. Quasi-contracts c. Delicts d. Law

BL-76-01 3
-·-- - -·---
 I
43. On A 1, 2012, A obligedh.imselfto give his only dog to B ifB will pass the Octoberl2 12 CPA
A Examination. If
the CPA examination was held on October 10, 11, 17 and 18 and the results were released p October 19, 2012 and B
passed and took his oath on November 20, 2012, B is entitled to the <i:>g on j
a. August 1,2012 b!O ber 18,2012 c. October 19,2012 · 1 d. November 20,201
I I
I
44. Using the preceding num r, ifthe do gav birth to a puppy on October 18,2012, which the·following
A statements is correct? · . · ·
a. A .is entitled to the puppy because in unilateraJ obligatiatlJ;, the debtor shall appf riate the fruits
b. B is entitled to the puppy because the condition has betrn folfilled and such all retroact to the day of
constitution of the obligatiOtY
c. B may demand from Athe value of the puppy and dain.as es i£A te:fuseg 1D gi;vd the puppy
·d. A shall pay damages to B.ifA shall appropriate the pupJ: ' ··

45. Using the precediilg number, if A delivered the dog and·the puppy on October 20, 2012 which of the following
statements is correct?
a. B acquired real right overi the dog and the puppy c.B c \11 sell the dog and uppy
b. A can recover the ptlppy but n the dog ':l
d. A Illrecover the dog but: lfOt the puppy

46. A owes B P1,000. A, knowing that the debt has prescribed, nevertheless, still pays B Can A recover what he
volnntarily paid?
i.
First answer Yes., because B has no right to demand the pa ment effected by A · ·
Second answer No, the payment extinguished the natural obli ;ati.on.
a. True, true b.True, false c. False, fule_, d. False, false

Items 47-51 A kind ofconsff'!Jcfive delivery whereby:

47. There is delivery when the keys of a warehouse are given 1 .

a Traditio simbolicar c. Traditio trevi-mann
b. Traditio longa-manu d. Traditio c onstitu.tom possesso$:Jn

48. There is delivery by mere consent or the pointing out of the object.
a Traditio simbolica c. Traditio trevi-manu
b. Traditio longs-manu; d. Traditio constitutom possesso

c 49. A possessor of a tbnot""as. .an owner, becomes the possessor as ov.ncr

a. Traditio simbolica --
Q. Traditio longa-manu
50. A possessor of a thing as an owner retains possession no longer as 8l!l owner, but in some of}ler capacity
a Traditio simbolica..- .-
b.Traditio longa-manu
"' 51. The opposite of brevi-manu
a. Longa-manlV'
b. Simpolica
· c. Traditio lfevi-manu
d. Traditio constitutom possessor --
!.
. ·c. Traditio t·revi-marm i
d Traditio c:oostitutotn
po
c. Constitutoin possessorium
d. Quasi-tradition

52.· If a thing is capable of particular !

deSignation .
a. Generic b. Specific" c. Indeterminate d. In<ietenninable

53. If a thing refers to a class, to a genus and cannot be pointed out with I
particularity. d. In4eterminable
a Generic.... b. Specific c. Determimte

c 54. A 'Wi.:re was about to deliver a child. Her parenu brought her to the houpital. Who should pay the expenieS for
medical
n oo? 1
Answer 1- The husband, because it is his duty to support his wife ;nd support includes cal atten ce.
Answer 2 -The parents, because they·were the persons who brougl n:the wife to the hospital
a. Both answers are ·correct .- c. Only the fiplt is corre-ct
b. ·Both answers are not correct d. Only the second is correct
t - The following are kinds offtuits of an obligation, excqrt
a natural b. industrial c..civil d. penaY
c I

BL -76- 01
4
 56. Spontaneous products of the soil and the·offspring and other products of animals
1 a natural.... b. industrial c. civil d. penal

p -57. Products of the soil through cultivation or intervention ofhuman labth'. -:

a natural b. industri.a.Y ··c. civil d. penal

BL -76- 01
4
c 58. Fruits arising out of contracts -like rental payments
a natural b. industrial c. civil d. penal

59. When does the obligation to deliver arise?

Answer 1-If there is no tenn or condition, then from the perfection of the contract
Answer 2- If there is a tenn or condition, then from the moment the term arrives or the condition happens .
a True, true.- b. True, false c. False, true d. false, false

c 60. A is obliged to give B 10 kilos of sugar, which of the foJlowing is ....ot corr¥!7
a. B can demand that A obtain the sugar and deliver it to him
b. B canjust buy 10 kilos of sugar and chm:ge the expenses to A /
c. A can insist on just paying B damages or the monetary value of the sugar
d. B may require another person to deliver the sugar and charge the expenses to A

D 61. Where demand by the creditor shall be necessary in order that delay may exist
a. When time is of the essence of the contract...
b. When demand would be useless
c. When the obligor has expressly acknowledged that be is in default
d. When the obligor requested for an extension of tiple

[ 62. Debtor 's default in real

obligation a Mora accipiendi c. Mora solvendi ex persona
b. Mora solvendi ex-re,... 'd. Compensatio morae

( 63. Debtor 's default in personal

obligation c. Mora solvendi-ex person a--- .
a. Mora accipiendi d. Compensatio morae
b. Mora solvendi ex-re

· 64. Default on the part of the creditor

a Mora accipiencfr' c. Mora solvendi ex persona
b. Solvendi ex-re d. Cornpensatio mor.ae

P 65. Default on the part of both parties

a Mora accipiendi c. Morn solvendi ex persona
b. Mora solvendi ex-re d. Compensatio morae,...

C 66. A borrowed money from B payable on Dec. 10, 2011. If A failed to pay on due date, will A be in delay?
a Yes, because there is stipulation as regardS the due date.v c. No, because demand has not been made by B
b. Yes, if the obligation is in writing. d No, if A has the money to pay B

·A 67. Damages awarded for mental and physical anguish

a Moral' b. Exemplary c. Nominal d. Temperate

68. Damages awarded to vindicate a right

a Liquidated b. Actual c. Nominal... d. Exemplary

69. Damages awarded to set an example

a Exemplary'" · b. Liquidated - o. Nominal d. Moral

C 70. When the exact amount of damages cannot be ascertained

a Exemplary b. Liqui&ted. c.. Temperate..... d. Moral

71. Damages predetermined beforehand

a Temperate b. Liquidated-- c. Actual d. Moral

72. A obliged himself to deliver to B the following :

1. 2011 Sing-lt Yatttaha Organ
2. Malagona passenger jeepney with engine N o. 69 and chasis No. 88
First Statement -In case A failed to deliver a 2011 Yamaha Organ, the court may compel A to deliver a 20
11
Yamaha Organ plus damages
Second Statement - Incase A failed to deliver thejeepney, the court may compel A to deliver the jeepney
plus
damages
a True, true b. True, false.... c_ False., true d.False, false

BL-76 - 01
5
J 13. I. Ifa person obliged to do something fails to do it, the same shall be executed at his cost.
II. Those who in the performance of their obligations are guilty of fraud, negligence, or delay and those who in any
manner contravene the tenor thereof: are liable for damages:
· a. True, true.- b. True, false c. False, true d. False, false

r 74. I. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for fraud
is void.
II. Ifthe law or contract does not state the diligence which is to be observed in the performance of
an obligation, that which is expected of a father of a good family shall be req).lired.
a True, true ,. b. True, false c. FBIore, true d. False, false

r 75. I. The receipt of a later installment of a debt without reservation as to prior installments, shall give
rebuttable presumption that such installments have been paid.
rise to a

II. If a taxpayer pays his income tax liability for the current year, there is a presumption that tax
liability for the previous year has been paid. 1
a True, true b. True, false c. False, tnt d. False, false

76. With regard to the right as to the fruits of the thing, which is not correcJ7
a. If the obligation is subject to a suspensive condition, the oblig3ti00 to deliver arises from the moment the
condition happens .
b. If the obligation is subject to a suspensive period, the obligation to deliver arises upon the expiration of the
term Ol' period
c. If there is no condition or term for its fulfillment, the obligation to deliver arises from the perfection of the
contract or creation of the obligation
d. Ifthe obligation arises from a contract of sale, the vendor has a right to the fruits of the thing from the time
the obligation to deliver arises....

f1 77. A is obliged to deliver his only car to B on November 20, 2011 IfA does not deliver, and on November 22, 2011,
a
typhoon destroys the car, wiiiCt1i';Correct? .
a A is not liable because the obligation is extinguished
b. A is liable because he is in delay
c. A and B will divide the loss equally
d. A's obligation is converted into a monetary obligation,

( 78. I. When what is to be delivered is a determinate thing, the creditor may compel the debtor to make the delivery
and
if the debtor refuses, the creditor may ask that the ob ·gation be complied with at the expense of the debtor.
II. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even
though they may not have been mentioned .
a True, True.....- b.True, False c.False, True d. False, False

f1 79. What is the basis of the liability of a school when a student is stabbed inside the campus by a stranger in the school?
a Contracts b. Quasi-contracts c. Delicts d. Quasi-delicts

T 80. The following except one, are included in civil liability. The exceptions
a Restitution b. Reparation c. lndemnification d. Starvation"'

rt 81. The thing itself shall be restored, as a rule

a. Restitution b. Reparation c. Indemnification d. Starvation

0 82. The court determines the amount of damage taking into consideration the price of the thing and its sentimental
value to the injured person
a. Restitution b. Reparation c. Indemnification d. Starvation

\ 83. The consequential damages suffered by the injured person and those suffered by his family or third person by
reason
of the act
a Restitution b. Reparation c. Indemnification.... d. Starvation

'J 84. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors
a. Accion reinvindicatoria b. Accion pauliana "" c.Accion subrogatoria d. Accion quanti-minoris

86. A borrower agreed that in case of non-payment of his debt, to render services as a servant. Which of the following is
not correct?
a. If the services will be rendered in satisfaction of the debt, the stipulation is valid.
BL - 76 -
01 6
b. If the service ; will be "for free", the stipulation is void for being contrary to law and morals.
c. If the service. will not be gratuitous, specific performance of the service will be the proper
remedy in ca ;e of non-compliance .
d. Should there be a valid stipulation as regards the rendition of services, an action for damages should be

BL - 76 -
01 6
 brought in case of non-compliance.

c 87. A ordered B, a 10 year old boy to climb a high and slippery mango tree with a promise to give him part of the fruits.
B was seriously injured when he fell while climbing the tree. Is A liable?
A) first Answer No, because no person shall be responsible ft.hr fortuitous events.
B) second Answer Yes, because A was negligent in making the order without taking due care to avoid a
reasonable foreseeable injury to B.
a. True, true b. True, false c. False, True d. False, false

p 87. A pays for B's transportation fare without B's knowledge and later di!:covers that B was entitled to half-far Which is
not correct?
a. A can recover the half-fare from B c. A can recover: Y:z from B and Y:z from the carrier
b. A can recover the half-fare from the d. A can recover half-fare from B only
carrier

88. A borrowed PlOO,OOO from B. The loan was secured by a mortgage of A's land in favor of B. Without the knowledge
of A, C paid B the sum of PlOO,OOO for A's debt. As a result
a. C may foreclose the mortgage on A's land if A cannot pay
b. C cannot claim reimbursement from A inasmuch as the payment ·11·as made without the knowledge of A
c. C can recover the amount from B in case A refuses to reimburse C
d. The obligation of A to B was extinguished but A should reimburse C the amount of PlOO,OOO because he
was benefited by the payment

R 89. When the debtor of a debtor is ordered not to pay the latter so that preference would be given to the latter's creditor.
a. Garnishment b. Interpleader c. lnjunction d. Attachment

B 90. A obtained a loan from B bank. The loan was embodied in several promissory notes. As security the borrower
executed a chattel mortgage on his standing crops. Said crops W(:t e however subsequently destroyed by typhoon
"Rosing". Is A still liable for the loan despite the destruction of the crops by a fortuitous event?
Ist answer Yes, the obligation of A was to deliver a generic thing -money.
2nd answer No, the obligation was to deliver determinate things - - the standing crops.
a. True, true b. True, false c. False, true d. False, false

( 91. A sold a half -interest in his specific car to B. It was agreed that the price to be paid by B wou ld be used in
installing a new engine on the car. Later, the car was destroyed by a fortuitous event. Is B's obligation to pay the
price extinguished?
151 answer Yes, there is no more use of installing a new engine since the car has already been
destroyed by a fortuitous event
2nd answer No, B must still pay because his obligation to pay is generic.
a. True, true b. True, false c. False, true d. False, false

92. I. A commits the crime of theft and is asked to return the car to its owner B. If before the car is delivered
to Bit is destroyed by a fortuitous event, Is A's liability extinguished?
II. Using above statement, A had previously asked the owner to accept the car, but the owner without
any justifiable reason refuses to accept the car, and it is destroyed b y a fortuitous event. Is A's
liability extinguished?
a. Yes, Yes b. No, Yes c. Yes, No d. No, No

93. I. There is no delay in an obligation not to do something

II. Solutio indebiti and negotiorum gestio are implied contracts
a. True, true b. True, false c. False, true d. False, false .

94. l. Consent of the parties is required in quasi-contract.

II. The creditor acquires real rights over the thing from the time the obligation to deliver arises
a. True, true b. True, false c. False, true d. False, false

95. The creditor has a right to the fruits of the thing from the time
a The thing is delivered c. The obligation to deliver the thing arises
b. The fruits are delivered d. The sale is perfected

p 96. The buy r has the right to the fruits of the thing from the time
a. The thing is delivered c. The obligati on to deliver the thing arises
b. The fruits are delivered d. The sale is perfected--
BL-76-01 7
 97.
prescribed:
h
I ,
If A pays a debt that has
!
1. not knowing it has prescribed, A can recover on the ground of undue payment !
2. knowing it has prescribed, A ot recover for this would be a case of natural oblig¢on
a. Both 1and 2 are true c. Only 2 is :me
b. Only l is true d. Both J and 2 are false .

c 98. A is obliged to give B his specific car on December 31,2010. There was no d livery and on January 4, 2011 the
garage of the car collapsed due to heaVy- rains and strong winds ofTwhoon Pining, and the car was totally destroyed.
Is A still liable?
a. No, even ifA was in default, he could plead impossibility ofpe.ditrmance
b. Yes, because the contract is ected
c. No, because there was no demand by B to deliver the car
d. Yes, the obligation to deliver the oar is changed to pay the equivalent value because B is in legal delay,....

99. This obligation is demandable at once when it

a. Has a resolutory condition b. Has a suspensive condition c. Is with a term ex-die d. Has a period

100. When the debtor binds himself to pay when his means permit him 1<• do so, the obligation shall be deemed to be
D with a
a. Resolutory period b. Suspensive condition c. Potestative condition d. Period,.....

101. A period with a suspen.c;ive effect

a. l will support you beginning January 1 of next c .I will support yon if A dies of TB
year d.I will support you if A marries B
b. I will support you until January 1 of next year

102. A period with a resolutory effect

a I will support you beginning January 1of next c. I will support you if A dies !
year d. I will support you if A dies of TB
b. I will support you until A dies .....

103. The obligation begins only from a day certain or upon the arrival .o(the period
a. Ex die b. In diem c. Conditional d. With a period

D 104. The obligation remains valid up to a time certain but terminates upon the arrival of said period
a. With a period b. Conditional c. Ex die d In diem

( 105. Anything paid or delivered before the arrival of the period, the ·obligor being unaware of the period or believing
\.
that the obligation has become due and demandable. ·
a. May be recovered without interests c. May be recovered with fruits and interests
b. May be recovered with interests d. May not l•e recovered

106. whenever in an obligation a period is designated, it is presumed to have been established for the benefit
a Of both the creditor and debtor-" c. Of the debtor only
b. Of the creditor only d. Of third :persons

i) 107. This is a valid obligation

a A will give B P 100,000 if B will kill C
b. A will give B P1,000,000 if B will agree to be the mistress of A
c. A will give B P lO,OOO if B can make C rise from the dead
d. A will give B P 1,000 if B will pose nude in a painting session

108. Where two or more prestatiO!J.S have been agreed upon but only 01Je..i£_du . the obligation is
a. Alternative b. facultative C. Conjoint d. Solidary

109. Using the preceding number, the right of choice, belongs

a To the debtor -' b. To the creditor c. To both debtor and creditor d. To third person

110. A is obliged to give B, at B's option either object No.1, Object No.2, or Object No.3. If all objects were lost
thru
A's fault, which is correct?
a. The value of the first thing lost plus damages must be given to B
b. The value of the last thing lost plus damages must be given to B
c. The value of any of the things lost plus damages must be given to ·:3
d. The obligation is extinguished
. BL - 76 - 01 8
 111. I. Using the-preceding number, if objects nos. 1 and 2 were destroyed by a fortuitous event and later object No. 3 i:s
destroyed by A's fault, A would still be liable.
ll. Using the preceding number, if objects Nos. 1and 2 were destroyed by A's fault and later object No.
3 is lost by a fortuitous event, A would still be liable.
a. True, true b. true, false c. False, true d. False, false

112. A is obliged to give B either objects No.1 or No.2 or No.3 at B's option. Before B communicated his choice to
A,
object No. 1had been destroyed, thru A's fault and object No. 2 had been destroyed by a fortuitous event. B may
as
a Demand object No. 3only it is still available
b. Demand the price of object No. 1 only plus damages because it was destroyed by A's fault
c. Demand the value of object No. 2 as the right of choice belongs to B
d. Demand either object No . 3 or the price of object No. 1plus damages
)
113. Any of the debtors is bound to render compliance of the entire obligation.
a. alternative b. facultative c. joint d. solidary

D 114. In a join t obligation, joint means .any of the following, except

a. pro-rata c. mancomunada simple
b. proportionate d. Individually and collectively

115. In Facultative obligations, if substitution has been made, which of the following is false?
a. The obligation is extinguished
b. The loss of the original prestation is immaterial
c. The obligation is converted into a simple oblig1rtioo
d. The obligation ceases to be facultative

A il6. Using the preceding number, and the substitute is lost by a :fortuitous even!, which is true?
a The obligation is extinguished
b. The debtor is liable for damages
c. The original prestation must be given
d. The debtor must give another object which is equally satisfactory

R 117. Using the preceding number, but the substitute js lost due to debtor's fault, which is
true? a The obligation is extinguiihed
b. The debtor is liable for damages
c. The original prestation must be given
d. The debtor must give another object which is qually satisfactory

1) 118. Instances where the law imposes solidary liability, except

a. obligations arising from tort
b. obligations ofbailees incommodatum
c. liability of principals, accomplices and accessories of a felony
d. liability of partners arising out of a contract

P 119. This will result to a solidary liability

a vitiated-consent on the rart of one of the debtors- · '·
b. insolvency of one of the debtors
c. default on the part of one of the debtors
d. quasi·delict commited by one of the partners acting inthe ordinary course of business

120. Where only one presmtion.ha.s been agreed upon, but the obligor .may nmder another insubstitution, the obligation
is
a. Alternative b. Facultative c. Conjoint d. Solidary
I'
V 121. Where two or more prestations have been agreed upou, and all of them must be perfonned, the obligation is
a. Altetnative b. Facultative c. Conjoint d. Solidary

122. A and B are .soligmy debtors of C and D, solidary creditors, to the amount of P 1,000. C can demand
a Pl,OOO from A or Pf,(fOOtrom B,.. c. P500 from A or P500 from B
b. Pl,OOO from A and P1,000 from B d. P500 from A and P500 from B

B 123. A and B oolidacy debrots..ofC and D, ioint creditors, to the amoWitofPl,OOO- C can demand
a. Pl,OOO from A or Pl,OOO from B c. P500 from A and P500 from B
b. P500 from A or P500 from B d. P250 from A and P250 from B

... BL-76-01 ·9
 124. A and B are joint d ebtors of C and D, solidary creditors, to the amount of Pl,OOO. C can demand
a Pl,OOO from A or Pl,OOO from B c. P500 from A and P500 from B
b. PSOO from A or PSOO from B d. P250 from A and P250 from B

125. A and Bare joint debtors of C and D, joint creditors. to the amount of Pl,OOO. C can demand
a P500 from A or P500 from B c. P250 from A and P250 from B
b. P250 from A or P250 from B d. P500 from A and PSOO from B

126. This is §YnOtmD-0£5 to joint obligation

a Joint and several b. In solidum c. Individually anrl collectively d. Mancomunada simple...-

f 127. This is synonymous to solidary obligation

a. Pro-rata b. Mancomunada c. Proportionate d.Juntos o separadamente

f 128. A, B and Care joint debtors of D for P3,000. If A is insolvent, how much shou1d B ?
a Pl,OOO b. Pl,500 c. P2,000 d. P3,000

( 129. In 2010, A, B and C bound themselves in solidum to give D P9,000 subject to the following conditions: A
will pay in 2010, B, ifD passes the 2011 CPA board exams and C will pay in 2012. In2010, how much can D
demand from C?
a P9,000 ..... b. P6,000 c. P 3,000 d. PO

I 130. A, B and C are solidary debtors of D for P3,000. D remitted C's share. A therefore paid
later only P2,000. A can recover reimbursement from B in the amount of -
a Pl,OOO b. Pl,500 c. PSOO d. PO

r- 131. Using the preceding number, if B is .insolvent, A can recover from C the amount of
a Pl,OOO b. Pl,500 c. P500 d. PO

j' 132. A, B, and Care solidary debtors of D in the amount of Pl,OOO. D remitted the entire obligation when A offered to
pay. A can demand reimbursement from B in the amount of
a. Pl,OOO b. PSOO c. P333 d. PO

133. A, B, and C are solidary deb of D ir... the amount ofP3,000 but A was incapacitated to give his consent as he
was a minor. If D sues B, how much will B be liable for?
a P3,000 b. P2,000 c. Pl,OOO d. PO

r 134. Using the preceding number, if D sues A, how much will A be liable for?
a P3,000 b. P2,000 c. PIOOO d. PO

) 135. A is indebted to solidary creditors B, C, and D, for P90,000. Without the knowledge of B and C , D remitted the
obligation of - as a result,
a The obligation of A to pay P90,000 is extinguished
b. The obligation is not extinguished because there is no consent from B and C
c. The obligation is extinguished only up to P30,000
d. The obligation is extinguished up to P60,00(}

136. A, B and C borrowed P6,000 from D and E, payable in 3 months with A giving in pledge her diamond ring as
security for the amount borrowed. How much can E collect from C?
a. Pl,OOO b. P2,000 c. P3,000 d. P6,000

137. A is obliged to give B her coUege ring. If she fails to do so, she must give PlO,OOO. This is
a. Alternative obligation c. Facultative obligation
b. Conjoint obligation d. Obligation with a penal clause

1 138. Where the penalty takes the place of indemnity for the damages and for the payment of interest
a Where there is stipulation to the effect that damages or interest may still be recovered,
despite the presence of the penalty clause
b. When the debtor refitses to pay the penalty imposed in the obligation
c. When the debtor is g,uilty of fraud or dolo in the fulfillment of the obligation
d. When there is breach of the obligations

BL -76 -01 10
 139. This is an obligation with a re§Olutory condition
a I'll give you P 10,000 if you pass the 2014 CPA board examination
b. I'llgive you my car now, but should you fail in any of your subjects, your ownership will cease and it
will be mine again ..
c. I'll give you PlO,OOO on. December 31,2014
d. I'll give you PlO,OOO if A dies ofTB

C 140. I. Ifthe condition is Q.o tative o the part ofthe debtor, the obligation is void.1
II. Ifthe condition is potestative onthe part of the creditor, the obligation is valid.
a True, true b.True, false c. False, True d. False, False

C 141. A owns a house rented by B. A sold the house to C where C agreed to pay the balance of the purchase price as soon
as B leaves the premises. It was further agreed that C will take care of seeing to it that B vacates the house. Which
is correct?
a The contract is void because it is potestative on the part of C
b. The contract is void because the consent ofB was not obtained
c. The contract is valid because the condition is mixed
d. The conb act is valid if B is willing to vacate the p1e1nises

142. I. The condition that some event happens at a determinate time shall extinguish the obligation as soon as the time
expires or it has become indubitable that the event ?till not take place.
II. TILe condition that some event will not happen at a detetminable time shall render the obligation
effective from the moment the time indicated has elapsed, or it has become evident the event cannot occur
a True, true b. True, false · c. False, true d. False, false

143.l A father promised to give his son a car .ifth<> son wil.marry. B thls year . If by the end of the year, B is
already dead or the son has not married B, the obligation to give a car is effective and demandable. F
11 A father promised to give his daughter a car if t:lu! daughter will l!Qt many her boyfriend earlier than l)ecem er
31, 2010, If by December 31 201Q, the daughter has not yet married her boyfriend, or if prior thereto, her
boyfriend has died, the obligation is extinguis]!ed. ,.
a True, true b. True, false c. False, true "' d.False, false

Ji 144. I. Obligations with a reso1utozy period take effect at once, but terminate upon arrival of the day certaip.
11. Obligations with a resolutory condition take effect at once, but terminate upon.happening of the
con.ditiqp.
a True, true b. True, false c. False, true d. False, false

8 145. A borrowed money from B and pledged her ring as security. Itwas agreed that A was to pay $e
money loaned with interest at the end of one year. BefOfe the expiration of the one-year period
a A may compel B to accept her payment " - -
b. A may be allowed to pay B, ifB consents
c. A may compel B to accept her payment because the period is deemed for the benefit of A
d. B may refuse A's payment as the period is deemed for the benefit of B

146. The debtor shall lose every right to make use oflhe period, except
a.. When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or
security for the debt
b. When he floes not furnish to the creditor. the.guaranties or s urities which he has promised
c. When through fortuitous events or by his own ts the guaranties or securities have been impaired,
unless he immediately gives new ones equally satisfactory "
d.. When the debtor violates any undertaking in consideration of which the creditor agreed to
the period
p 147. I. "We promise to pay"when there are two or more-signatures = joint liability
IT. "I promise to pay" when there are two or more signatures = solidary liability
a. True, true b. True. false c. False, true d. False, false "

148. A obliged himself to pay B PlOO,OOO in 30 days plus a penal!)' ofPH),OOO if A fails to pay the obligation in
due time. A failed to pay the obligation in30 days, B can <kmand from A
a. The principal ofPlOO,OOO plus PlO,OOO penalty
b. The principal ofPlOO,OOO plus P10,000 penalty plus legal interest
c. The principal OfPlOO,OOO plus PlO,OOO penalty, plus legal interest, plus damages
d. The principal ofPlOO,OOO plus legal 'interest, p us damages

-
---- ..--
BL-76 - 01 11
A 149. The creditor is entitled to recover damages and interest in addition to the penalty stipulated
A) When the debtor refuses to pay the penalty
B) When the debtor is guilty of fraud in the fulfillment of the obligation
a True, true b. True, false c. False, true d. False, false

150. Action where a person in possession of certain property may bring an action against the conflicting claimants to
compel them to interplead and litigate their several claims among themselves
a. Garnishment b. Interpleader c. Injunction d. Attachment

151. A judiciai process by virtue of which a person is generally ordered to refrain from doing something
a Gamis.hment b. Interpleader c. Injunction cl Attachment

A 152. Where a property is alienated to the creditor in satisfaction of a debt in money

a. Dation in payment -- b. Payment by cession c.Application of payment d. Consignation

153. Where a debtor transfers all his properties not subject to execution in favor of his creditors so that the latter may sell
them and thus apply the proceeds to their credits.
a. Dation in payment b. Cession c.Application of payment d. Consignation

B 154. The act of offering the creditor what is due him together with a demand that the creditor accept the
same aApplication of payment b. Tender of payment c. Datio in
solutum d. Cession

155. The act of depositing the thing due with the court or judioial authorities whenever the creditor £aDll.Ot accept or
refuses to accept payment
a. Tender of payment b. Consignation c.Application of payment d. Datio in solutwn

156. The meeting in one person of the qualities of creditor and debtor with respect to the §@le obli tion
a. Confusion" b. Compensation c. Novation - d. Condonation

157. When two persons in their own right are creditors and debtors of each other
a Confusion b. Compensation " c. Novation d. Condonation

1
158. This is not neces in order that compensation may prosper
a. That the two debts are both due
b. That the two debts be liquidated and demandable
c. That there be a retention or controversy commenced by third persons and communicated in due time to the
debtor...-
d. Both debts consists 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.

D 159. Compensation cannot takJWlace, except

a. When one debt arises from the obligations of a depositary
b. When one debt arises from the obligations of a bailee in commodatum
c. When one debt arises because of a claim for support due to gratuitous title
d When one debt arises from a bank deposit
{1

l 160. The Sllbstitutio!! or change of an obligation by another, which extinguishes or modifies the ftrst
a Confusion b. Compensation c. Novation d. Consignation

161. Novation which changes the object or the principal condition of the obligation
a. Real b. Personal c. Mixed d. Partial

)'); 162. Novation which changes the es to the obligation

· a Real b. Personal c. Mixed d. Partial

163. Expromission, delegacion or subrogating a third person in the right of the creditor
a Real b. Personal c. Mixed d. Partial

164. Novation whlch changes the object and parties of the obligation
a. Real b. Personal c. Mixed d. Partial

165. Substitution of debtor where the initiative comes from a third perso11
a. Delegacion b. ExpromiS!.UOI{ c. Subrogation d.Novation

166. Substitution of debtor where the initiati·ve comes from the debtor
a Delegacion ... b. Expromi!Jsion c. Subrogation d. Novation

BL-76 - 01 12
c 167. The transfer to a third person of all the rights appertaining to the creditor
a Delegacion b. Expromission c. Subrogaticn d. Novation

168. Legal subrogation is presumed in the following. Which is not correct?

a. When a third person, not interested in the obligation, pays with the approval of the creditor
b. When a creditor pays another creditor who is preferred, even without the debtor's knowledge
c. When a third person. not interested in the obligation, pays with tlu: express or tacit approval of the debtor
d. When, even without the knowledge of the debtor, a person inten,sted in the fulfillment of the obligation
pays, without prejudice to the effects of confusion as to the larter 'n share.

169. I. Proof of actual damages suffured by the creditnc is not necessar:r inorder that the penBl:ty previously agreed
upon may be demanded.
ll. Proof of actual damages suffered by the creditor is not nec:ssary ir an obligation with a penal
clause.
a True, true b. True, false c. False, t:ru,e d. False,false

170. I. Whoever pays for another may demand from the debtor wbathe has paid, except that i:fhepaid
without the knowledge or against the will of the debtor he cannot n:cuver anything.
n. The debtor of a thing cannot compel the creditor to receive a diffen:nt one, although the latter may
be of the same value as. or more valuable than that which is due.
a True, true b. True, false c. False, ·true d. False.false

C 171. A owes B two debts, both of which are alre dy due. The first debt is secured by a mortgage, the second is not. A
tells B that the payment he is now making should be applied to the Stcond debt instead of the first, which is correct?
a B may refuse such application on the ground that the first debt is more burdensome to the debtor
b. B may refuse such application because the payment shall be applied proportionately
c: B cannot refuse the application because the preference of the debtor must be
followed
d. B can not refuse the application ifthe first debt is "'older,than tb.t: second

C 172. I. A has a PlO,OO.Q.savings deposit with XYZ Bank. One day A l1orrowed P2,000 from the bank. On maturity of
the loan, without seeking permission from A. the bank subtracted the P2,000 from A's account. Is the bank's
action proper?
II. A asked B to keep PIO,OOO for him. Later, A borrowed P4,000 from B. When A asked for the
return of his money, B gives him. only P6,000 alleging partial compensation. Is B correct?
a Yes, Yes b. No, Yes c. Yes, No d. No, No

0 173. A owes B PlO,OOO With Cas a guarantor. A paid P4,000 leav111g f'(i,OOO unpaid balance. D without the
knowledge of A, paid B the sum ofP10,000. As a result of this payment.
a The obligation is not extinguished as the payment is without the consent of A.
b. The obligation is extinguished but D cannot reco:ver from A inste :d he should go
after the guarantor.
c. The obligation is extinguished but D can recover only P6,000 from A and if A cannot pay, D
should demand payment from C.
d. The obligation is extinguished, but D cannot recover PlO,OOO bU't only P6,000 from A and if A
cannot pay, he cannot go after C.

174. A owes B PIO,OOO C in behalf of A, pays B PlG,OOO against the cocsent of A. although Chad previously told A that
he (C) did not intend to be reimbursed. Nevertheless , B pted th.e payment by C in behalf of A.
1st statement A's obligation towards B is extinguished.
2nd statement C may still recover from A because A did not consent to what the law deems a donation
on the part of C in favor of A
a True, true b. True, false c. False, true d. False, false

C 175. A owes B two debts, both of which are already due. The first dt·)t is secured by a mortgage while the second is
not. A tells B that the payment he is now making should be applied to the second debt, instead of the first.
151 statement B may refuse to accept such application on ·tl e grmmd 1hat the first debt is
more burdensome to the debtor
2nd statement B cannot refuse such application because 1he pref.;rence of the debtor must be followed.
a True, true b. True, false c. False, true d. False, fa,tse

B 176. I. A owes B PlO,OOO, guaranteed by C. B assigns his credit to X X assigns the credit toY, Y assigns the credit to
A A's obligation is extinguished and Cis released from his oblig.ation as guarantor.
ll. A owes B Pl 0,000 guaranteed by C. B assigns his crt-.di:t to X. :< assigns his credit to rt". Y assigns his credit to
C, the guarantor. A's obligation is extinguished and C i& releas«l from his oblig on guarantor.

a. True, true b. True, false c. False, true d.False, f e

BL -76 -01 13
 177. A has two creditors, B and C. B is a mortgage creditor for P20,01)0, and Cis an ordinary creditor for P10,000.
C paid A's debt ofP20,000 to B.
151 statement If C's payment is with A's knowledge, C will b1 subrogated in the rights of B.
2nd statement If C's payment is without A's knowledge, C Vl ll not be subrogated in the riSirts of B.
a True, true b. True, false c. False, tru1 d.False, false

178. A and B are jointly liable to deliver a particular car valued at P200,000 to Con July 1, 2014 Which is correct?
a The prestation is indivisible making the liability of A and B solidru. r
b. If on July 1, 2014 A is willing to deliver the car but B is not, C may enforce the obligation against A
c. A is liable for a proportionate part of the obligation and will be liab.!e also for damages if B is not
ready to comply with his obligatioo., even if A is willing to deliver tbe car
d. The liability of A and B is joint and that damages may be assesw:d only against the debtor who violated the
obligation

l) 179. A executes in favor of B a promissory note for P 1,000,000 payable after two years, secured by a mortgage on a
building valued at P2,000,000 . One year after the execution of the note, the mortgaged building was totally
bwned. Can B demand from A the payment ofthe value of the note?
a Yes, if A is willing to pay B
b. No, if A refuses to pay B
c. Yes, even ifA gives another security which is equally satisfactot)·
d. Yes, unless A gives another security which is equally satisfactor:y

c 180. A obliged himself to pay B PlO,OOO as soon as possible. Three nnnths later, B demanded payment from A but
the latter refuses to pay. B can
a File an action in court compelling A to pay the obligation
b. Consider the obligation void because the phrase as soon as possible is indeterminable
c. Go to court so that the court will fix the date of payment
d. Ask for damages because three months is considered too long for "as soon as possible"

A 181. A owes B PlO,OOO payable on June 30,2011 and as a security A pledged his ring to B. Necessarily, the ring was
delivered to B. On due date, the ring is found in the possession of <\ when it should be in the possession of B. As a
result, one of the following is not correct.
a A's obligation to B is extinguished
b. A's obligation to B is not extinguished
c. The contract of pledge is extinguished
d. The contract of pledge is extinguished but not the principal obligation

B 182. I. An example of an obligation with a period is when A promises LO pay B PlO,OOO one month from the death of C.
ll. A person is obliged to deliver a determinate thing including ·its accessories and accessions provided they have
been mentioned inthe agreement
a True, true, b. True, false c. False, tn.e d. False, false

V 183. I. When the fulfillment of the suspensive or resolutory conditio:1 depends upon the sole will of the debtor, the
conditional obligation shall be void.
II. If the debt produces interest, payment of the interest shall not t e deemed to have been made until the principal
have been covered or paid.
a. True, true b. True, false c. False, trr.e d. False, false

( 184. I. Condonation or remission is generally gratuitous '

ll. Proof of actual damages suffered by the creditor is not necessary in order that the penalty in an obligation
with a
penal clause may be demanded.
a. True, true b. True, false c. False, true d. False, false

( 185. I. In delagacion, the insolvency of the new debtor will not revive 1he original debtor's obligation.
II. In expromission, the insolvency of the new debtor may at times revive the original debtor's obligation
a. True, true b. True, false c. False, tnte d. False, false

186. I. A 59lidary creditor cannot assign his rights without the consent •Jfthe other creditors.
ll. Payment of the debtor's obligation may be made by a third person even without the kn0wledge and consent of the
debtor.
a. True, true b. True, false c. False, t:n te d. False, false

?. 187. 1. Solidarity may exist although the debtors and the creditors mlity not be bound in the e m3Dller and the same
periods and.conditions ·
II. A solidary debtor is always entitled to reimbursement from his co·debtors ifhe pays for Jheir obligations.
a. True, true b. True, false c. False, true d. Fcuse, false

BL-76-01 14
 188. I. Payment made in good faith to any person in possession of the credit shall extinguish the debtors obligation.
II. When the debtor is guilty of fraud in the fulfillment of an obligation, a creditor can demand payment of damages
and interest in addition to the penalty.
a True, true b. True, false c. False, true d False, false

189. A obliges himself to give B a specific car on Jan. 7, 2014. On Jan 2, 2014, C burned the car which A promised to
deliver to B, which is correct?
a A's obligation to B is converted to monetary obligation
b. A should file an action against C for the value of the car plus damages
c. B can file an action against A for the value of the car plus damages
d. B can file an action against C for the value of1bc car plus <.lmnages

190. A owes B PIO,OOO due on Jan. 7, 2014 and guaranteed by C. Bowes A P8,000 due on Jan. 7, 2014. On the due
date, A is insolvent. How much is C's liability?
a. PlO,OOO b. P8,000 c. P2,000 d. Zero

D l9l. A deposited with B 100 cavans of palay valued at Pl OOO. A however, is indebted to B for PlO,OOO which is
already due. When A is withdrawing the palay: B refuses to deliver, claiming compensation. Is B correct?
a Yes, both obligations are due
b. Yes, considering that the value of the palay is equal to the amount of A's obligation
c. No, because there was no stipulation allowing compensation
d. No, because B's obligation arose from a contract of deposit

D 192. In tender of payment and consignation, if after consignation is made, the creditor allows the debtor to withdraw
the thing deposited in court, which of the following statements is not correct?
a Guarantors are released from the..obligatioa unless they consented
b. Sureties are released from the obligation unless they consented
c. The obligation is not extinguished
d. The obligation is extinguished

D 193. A owes B PIOO,OOO payable on or before June 20: 2014 while Bowes A P100,000 payable on or before June 30,
2014 B can set up compensation on June 20, 2011 and thi s is called
a. Legal b. Partial c. Judicial or "set off" d. Facultative

194. Which of tile following is an obligation with a period for the benefit of the debtor?
a. An obligation payable little by little
b. An obligation payable when the debtor's means permit him to do so
c. An obligation payable within 10 months on demand
d. An obligation payable on or before Dec. 31, 2014....-

8 195. Proofofpecuniary Jogg ig necessary for the award of

a. Moral damages
b.Actual damages
c.Exemplary damages
d.Temperate damages

P 196. The indemnity which the law gives to the injured party for the breach of a contract is
aDamages ... .
b. Damage
c. Injury
d.Loss

197. The loss suffered by one person on his property is

a. Damages
b.Damage
c. Injury
d.Depreciation

198. Not a requisite of cession

inpayment a One debtor and one
creditor
b. Complete or partial insolvency
c. More than one debt
d. Abandonment of all debtor 's property not exempt from execution

. ..- , ..
BL-76-0r 15.. :
( 199. If the obligation is payable in foreign currency, which is correct?
a The obligation is void -
b. The obligation is valid, but the stipulation is void
c. The creditor can compel the debtor to pay in forejgn currency as per agreement
d. The stipulation and the obligation are void

r 200. Who is liable for the loss of the subject matter by fortuitous event?
a. Creditor --
b.Debtor
c. Both of them
d. NQne of them

p 201. I'll give you my car one year after X dies. The obligation is
a Valid., because death is sure to come.
b. Valid, but the condition will be disregarded
c. Void, then time·when death will occur is not certain
d Void, killing a person is contrary to law
1
202. Whoever pays for another without the knowledge OI against the w.Jl of the debtor
a May demand from the debtor what he has paid
b. May not recover anything from the debtor
c. May recover only insofar as the payment has been b,neficial to the debtor
d. May recover from the debtor what he has paid plus damages

' 203. A owes B PlO,OOO. Later A paid B P7,000 leaving a balance ofP3,000. C, a suitor of A and intending to swprise
A, paid B the sum·of PlO,OOO thinking that A still owed B that amount. C did this without knowledge of A.
Which is correct?
a.C can recover P 10,000 from A
b. C cannot recover anything from A
c. C can recover PlO,OOO from B
d. C can recover P3,000 from A
1
204. The act of putting somebody onto the shoes of the creditor enabling him to exercise all the rights and actions
that could have been exercised by the latter.
a Agency
b.Partnership
c. Subrogation
d.Novation

205. A borrowed P LO,OOO from B. The loan was secured by a mortgage of A's land in favor of B. Without the
knowledge of A, C paid the sum of .PlO,O:OO for A's debt. A benefited to the amount of .PlO,OOO. Whicb is not
correct?
a. C can recover the whole amount ofPlO,OOO from A
b. If A cannot pay, C cannot foreclose the mortgage inasmuch as C paid without the knowledge of A
c. C may either demand recovery ofPlO,OOO from A or to foreclose the mortgage
d. IfC did not pay, the original creditor B has the right t<> foreclose in case of uon-payment by A

206. A has in his possession some merchandise to be delivered to the person who presents the proper receipt. B and C
each armed with a receipt, ask A to tum over the property to one of them. An examination of the receipts reveals
that they are exactly of the same kind. A does not know to whom he should deliver the property. So he files an
action in court by means of which B and C will be able to settle their conflicting rights. This is
a.An intel)'>leader
b. An injunction
c. A garnishment
d.A consignation
1\
207. When is there no loss of the thing due?
a. When the object pt :rishes
b. When it goes out of commerce
c. When it is in possession of another person
d. When it disappears in such a way that its existence is unknown or it cannot be recovered

BL -76 - 01 16
 208. The expenses of consignation when properly made, shall be charged against
the a Debtor
b.Creditor
c. Third person
d.Debtor and creditor

209. The designation of the debt to which should be applied a payment made by a debtor who owes several debts
in favor of the same creditor - -
a Dation in payment
b.Application of payment
c.. Tender of payment
d. Payment by cession

210. A is the owner of shares of stock of ABC Bank amounting to PlOO,OOO. Later, A borrowed money from the bank
amounting to P90,000 with interest thereon at 6% per annum. The debt was to be paid in installment. One of the
conditions of the debt contract is that in case of the debtor's default in the payment of any of the installments as
they become dn the entire amo t or the unpaid balance thereof will become due and payable on demand. The
defendant A defaulted in the payment of several installments and plaintiff bank brought this action to recover the
unpaid balances. A pleaded compensation. Which is correct?
a. A is allowed to avail of compensation ·
b. There can be no compensation because A and ABC are not debtors and creditors of each other
c. Compensation is allowed only up to P90,000 plus interest
d. Compensation is allowed only up to P90,000 without interest

b 211. There is compensation

a. A in his capacity as guardian of B is a creditor of C. C in tum is a creditor of A who owes him a
personal debt
b. A, debtor of two partners is a creditor of the partnership
c. A owes B PIO,OOO payable May 31, 2010. Bowes A PlO,OOO payable on June 30, 2010. If today is
May 31,2010
d. A owes B a fountain pen and B owes A also a fountain pen. Both debts are due

212. A owes B Pl ,OOO. B in tum owes A P200. Both debts are already due. Later B assigns the Pl,OOO credit to C,
without the knowledge of A The assignment was made on JW1e 3. On June 10, a P250 debt ofB in favor of A
matured. A learned of the assignment on July L On Ju.l.y 10, a P150 debt of B infavor of A matured. Later C
asks A to pay his debt. How much can C successfully collect from A?
aPl,OOO
b.P800
c.P550
d.P400

c 213. A owes B PlO,OOO. When the debt matured B told A that she need not pay the debt since B is condonin
tum expressed her gratitude. The debt has been extinguished by
g it. A in

a. Novation b. Compensation c. Remission ' d. Confusion

214. Usiag the preceding number, if A rejected the offer of B, and B did not collect within the atute of limitatio
(period to collect) the debt may be said to have been extinguished by
a Remission b. Compensation c. Prescription " d. Annulment

215. A makes a check payable to bearer and gives the check to C, who gives it to D who finally gives it to A The
obligation of A is extinguished by
a. Merger "' b_ Compensation c. Novation clPrescription.

216. A owes B PlO,OOO. C, a friend of A approaches Band tells him" Iwill pay you what A owes you. From now on
consider me your debtor, not A A is to be excused . IfB agrees, there is ·
a Novation b. Subrogation' c. Delegacion d. Expromission ?

D 217. The substitution o.r change of an obligation by another, which extinguishes or modifies the first, either changing its
object or principal condition or substituting another in the place of the d btor, or subrogating a third person in the
rights of the creditor
a. Compensation b. Merger c. Prescription d. Novation'

B 218. A method of novation caused by the rcwlacement of the old debtor by a new debtor, where the old debtor has
proposed to the creditor and which replacement has been agreed to by said creditor and by said new debtor is
a. Novation b. Delegacion c. Expromission d. Quantum eruit

BL-76-01 17
l 219. A owes B P 10,000. A proposed to B that C will pay A's debt and that A will be released from all liabilities. B and
C agreed to the proposal. Later, when B tries to collect from C, he finds out that C is insolvent. It was proved that
at the time of delegacion, C was already insolvent but this was not known to A, neither was the insolvency of
public knowledge. Is A still liable?
a. Yes, because there is delegacion
b. No, because there is delegacion
c. Yes, because the initiative came from A
d. No, because the insolvency was neither of public knowledge nor known to A at the time he
delegated his debt

220. A and B entered into a contract whereby A was to give B P200,000. Later they novated the contract by stipulating
that instead of cash A would give a particular car. Subsequently the car was destroyed by a fortuitous event. Which
is correct?
a . Novation is not allowed because the gs due are not of the same kind
b. A is liable to pay P200,000,.the amount of the old obligation
c. The original obligation is extinguished but not the obligation to deliver the car
d. The original obligation and the obligation to deliver the car are both extinguished

221. A, Band C executed a promissory note worded as follows: "We promise to pay to X, Y and Z the sum ofP90,000.
Sgd. A, B, and C. Which is correct?
a A is obliged to pay to X, Y and Z P90,000
b. A is obliged to pay to X P60,000
c. A is obligedo pay toY P30,000
d. A is obliged to pay to Z P 10,000

222. A obliged himself to give B a specific car on June 12, 2014 stipulating that A is liable even if the thing is lost due
to fortuitous event and without the need of a demand. On due date, the car got lost due to fortuitous event. Which
is correct?
a Obligation is extinguished dne to fortuitous event
b. B can compel A to deliver another car
c. B can require another person to deliver a car with expenses chargeabl e to A
d. Obligation is not extinguished but converted into monetary consideration

223. A, B and C obliged themselves solidarily to give D a specific car valued at P240,000 . On due date, D demanded
delivery but the debtotS failed to deliver. The next day, while A was still in po sion of the car, it was lost due
to a fortuitous event. The right ofD is
a To proceed against any of the d btors for the value of the car plus damages
b. To proceed against A only because the car was lost while in his possession
c. None, because the obligation is extinguished due to a fortuitous event
d. To proceed against Band C because they were not in possession of the car when it was lost due to a
fortuitous event

224. The transfer to a third person of all the rights appertaining to the creditor including the right to proceed against
guarantors, or possession of mortgages, subject to any legal provision or modification that may be agreed upon
a Novation b. Delegacion c. Expromission d. Subrogation

225. A owes B PlO,OOO. With th.e consent of A and B, C pays B P5,000. Now Band Care the creditors of A to the
amount ofPS.OOO each. Suppose, A has only P5,000. Which is correct? ·
a B should be preferred
b. C should be preferred
c. B and C should be paid pro-rata
d. A may choose whom to pay

The End!/

BL -76 -01 18