LAW ON OBLIGATIONS AND

CONTRACTS
5. It is an essential element of obligation
TEST BANK which is the efficient cause established by
the various sources of obligations:
INTRODUCTION
a. vinculum juris or juridical tie
b. juridical capacity
1. The kind of obligation defined in Article
1156 of the Civil Code is called: c. prestation, object or conduct
a. Natural obligation d. active and passive subjects
b. Civil obligation
c. Moral obligation 6. In an agreement between the seller and
the buyer whereby the former will buy from
d. Parental obligation the latter a specific thing for P1,000, what
is the efficient cause or juridical tie:

2. An obligation exclusively based on a. to give the specific thing

positive law and enforceable in court: b. to pay the price
a. civil obligation c. agreement
b. natural obligation d. purchase of the specific thing
c. moral obligation
d. mixed obligation 7. Obligations governed primarily by the
agreement of the parties:

3. If a creditor’s right of action to collect a. Those arising from law

based on a written contract has prescribed b. Those arising from quasi-contracts
after 10 years from the time the action has
accrued, the civil obligation of the debtor is c. Those arising from contracts
converted into:
d. Those arising from quasi-delicts
a. civil obligation
b. natural obligation
8. The following are essential elements of
c. moral obligation a valid object or prestation, except:
d. mixed obligation a. must be determinate or specific or at
least determinable
b. must be physically or legally possible
4. The definition of obligation emphasized
the obligation of the obligor or debtor and c. must have an economic value or be
implies the correlative right of the oblige or capable of pecuniary estimation or
creditor to: possible equivalent in money
a. sign the contract d. none of the above
b. demand the performance of the act or
conduct
c. rescind the contract
d. honor his recirprocal obligation
9. Form is a requisite only of obligations: b. Juridical tie
c. Prestation
a. arising from law d. Passive subject
b. arising from quasi-contracts
c. arising from solemn contracts (e.g. 14. This will NOT result to a civil
donation) obligation:
d. arising from quasi-delict
a. Riding a jeepney
10. The obligee is also called: b. Excess in the change given by a
saleslady
c. Break up between boyfriend and
a. Active subject girlfriend
b. Juridical tie d. Stealing something
c. Prestation
d. Passive subject 15. This will result to a civil obligation:

11. The creditor is also called: a. Failure to return a borrowed item from a
friend

a. Active subject b. Not liking the food ordered in a fast food

chain because of its taste
b. Juridical tie
c. Failure to follow parent’s command to
c. Prestation help in the household chores
d. Passive subject d. Refusal to share notes with a classmate
16. Quasi-contracts are those legal
relations that:
12. This is not an element of a civil
obligation:
a. Are agreed upon by both parties
a. Parties b. Result from an illegal act
b. Juridical tie c. Requires payment to avoid being
benefited at the expense of another
c. Prestation
d. Result from fault or negligence
d. All of the above are elements of civil
obligation
17. Quasi-delicts are those legal relations
that:
13. This is the reason for the existence of
the obligation
a. Are agreed upon by both parties
a. Active subject b. Result from an illegal act
c. Requires payment to avoid being
benefited at the expense of another
d. Result from fault or negligence, there
being no pre-existing contract between the
parties
18. Obligation derived from this source of
obligations is not presumed and must
expressly provided by the Civil Code or
special laws in order to be demandable:
a. law or ex lege
b. contract or ex contractu
c. quasi-contract or quasi-contractu
d. act or omission punishable by law or ex
delito or ex malficio
19. Obligations arising from this source of
obligations have the force of law between
the contracting parties and should be
complied with in good faith:
a. law or ex lege
b. contract or ex contractu
c. quasi-contract or quasi-contractu
d. act or omission punishable by law or ex
delito or ex malficio
20. A source of obligation, which is a legal
fiction of legal relation resulting from
lawful, unilateral and voluntary act where
there is no existing contract:
a. law or ex lege
b. contract or ex contractu
c. quasi-contract or quasi-contractu
d. act or omission punishable by law or ex
delito or ex malficio
21. It is an extra-contractual obligation
where an officious manager voluntarily
takes over an abandoned or neglected
property or business without authority of
the owner:
a. negotiorum gestio
b. solution indebiti
c. quantum meruit
d. res ipsa loquitor
22. As a general rule, every person
criminally liable for a felony is:
a. likewise liable for exemplary damages
b. also civilly liable
c. generally not civilly liable
d. discharged from payment of civil liability
23. In case of material damage or injury,
the liability of a convicted person includes:
a. restitution
b. reparation
c. indemnification
d. all of the above
24. It is an act or omission which causes
damage to another, there being fault or
negligence and there being no pre-existing
contractual relation between the parties:
a. contract
b. quasi-contract
c. crime
d. quasi-delict
25. A source of obligation where it is not
the act or omission which gives rise to the
obligation, but the want of care required
from the circumstances:
a. contract
b. quasi-contract
c. crime
d. quasi-delict
NATURE AND EFFECT OF
OBLIGATIONS
26. A person who is obliged to give
something is:
a. Required to take care of the thing he
will deliver diligently at all times
b. Required to take care of the thing he
will deliver diligently if the thing is
determinate only
c. Is not required to do something at all
d. Liable for damages if the thing is lost all
the time
27. D and C agreed that prior to the
delivery of D’s dog Blackie, D should keep
it in the dog house, feed it four times a
day, give it a bath five times a week and
make it stroll every morning for at least
one hour. D should therefore, take care of
Blackie:
a. With ordinary care
b. According to law
c. According to stipulation
d. With proper diligence of a good father of
the family
ART. 1163. EVERY PERSON OBLIGED
TO GIVE SOMETHINg IS ALSO
OBLIGED TO TAKE CARE OF IT WITH
THE PROPER DILIGENCE OF A GOOD
FATHER OF A FAMILY UNLESS THE
LAW OR THE STIPULAITON OF THE
PARTIES REQUIRES ANOTHER
STANDARD OF CARE.
28. This is a determinate thing:
a. A kilo of “dinorado” rice
b. A pet dog Labrador
c. Ballpen you are using right now
d. Mobile phone Samsung Galaxy
29. The following are the rights available
to a creditor in obligations to give a
determinate thing:
a. To compel specific performance
b. To recover damages in case of breach.
c. Acquires personal right to the fruits of
the thing from the time the obligation to
deliver arises
d. All of the above
30. The following are the rights available
to a creditor in obligations to give a
generic thing:
a. To ask for performance of the
obligation.
b. To ask that the obligation be complied
with at the expense of the debtor.
c. Acquires personal right to the fruits of
the thing from the time the obligation to
deliver arises
d. Only letter (a) and (b)
Art. 1164. The creditor has a right to the
fruits of the thing from the time the
obligation to deliver it arises. However, he
shall acquire no real right over it until the
same has been delivered to him.
Art. 1165. When what is to be delivered is
a determinate thing, the creditor, in
addition to the right granted him by Article
1170, may compel the debtor to make the
delivery.
If the thing is indeterminate or generic, he
may ask that the obligation be complied
with at the expense of the debtor.
If the obligor delays, or has promised to
deliver the same thing to two or more
persons who do not have the same
interest, he shall be responsible for any
fortuitous event until he has effected the
delivery.
Art. 1166. The obligation to give a
determinate thing includes that of
delivering all its accessions and
accessories, even though they may not
have been mentioned.
The following are the rights available to a
creditor in obligations to give:
If it is a determinate thing:
a. To compel specific performance (ART.
1165)
b. To recover damages in case of breach.
(ART. 1170)
c. Acquires personal right to the fruits of
the thing from the time the obligation to
deliver arises (ART. 1164)
d. Acquires real right over the thing once
the thing has been delivered to him. (ART.
1164)
e. Rights over the accessories and
accessions. (ART. 1166)
If it is a generic thing:
1. To ask for performance of the
obligation. (ART. 1165)
2. To ask that the obligation be complied
with at the expense of the debtor. (ART.
1165)
Duties of debtor in obligation to deliver a
generic thing.
They are:
1. To deliver a thing which is of the quality
intended by the parties taking into
consideration the purpose of the obligation
and other circumstances (see Art. 1246.);
and
2. To be liable for damages in case of
fraud, negligence, or delay, in the
performance of his obligation, or
contravention of the tenor thereof. (see
Art. 1170.)
A determinate thing is one that is
particularly designated or physically
segregated from all others of the same
class. (Article 1460, Civil Code of the
Philippines)
A generic thing is one whose
determination is confined to that of its
nature, to the genus to which it pertains
such asa horse, a chair.( De Leon vs.
Soriano, 87 Phil. 196).
31. If the debtor is already delayed:
a. He is liable for damages even if the
thing was lost due to fortuitous event
b. He is not liable for damages if the thing
was lost due to fortuitous event
c. He is not liable for damages all the
times
d. He is liable for damages all the times
Art. 1165. When what is to be delivered is
a determinate thing, the creditor, in
addition to the right granted him by Article
1170, may compel the debtor to make the
delivery.

If the thing is indeterminate or generic, he
may ask that the obligation be complied
with at the expense of the debtor.
If the obligor delays, or has promised to
deliver the same thing to two or more
persons who do not have the same
interest, he shall be responsible for any
fortuitous event until he has effected the
delivery.
32. It the obligation is to give a mobile
phone and there was no agreement:
a. The debtor should also give the mobile
phone charger
b. The debtor is not obliged to give the
mobile phone charger
c. The debtor should only give the mobile
phone charger if it was asked from him
d. The debtor should not only give the
mobile phone charger but also the
headphone and other accessories, if any
Art. 1166. The obligation to give a
determinate thing includes that of
delivering all its accessions and
accessories, even though they may not
have been mentioned.
1) Accessions - fruits of, or additions to, or
improvements upon, a thing (the
principal), e.g., house or trees on a land;
rents of a building; aircon in a car; profits
or dividends accruing from shares of
stocks; etc.
(2) Accessories - things joined to, or
included with, the principal thing for the
latter’s embellishment, better use, or
completion, e.g., key of a house; frame of
a picture; bracelet of a watch; machinery
in a factory; bow of a violin.
DIFFERENCE - Accessions are NOT
NECESSARY to the principal thing.
Accessory and the principal thing MUST
GO TOGETHER.
Both accessions and accessories can
exist only in relation to the principal.
33. The creditor in an obligation to do has
the right to:
a. Ask the debtor to perform the obligation
b. Ask the debtor who fails to perform the
shall obligation to pay the person who
executed the obligation
c. Ask the debtor who contrived the tenor
of the obligation or have done the work
poorly to pay
d. All of the above
Art. 1167. If a person obliged to do
something fails to do it, the same shall be
executed at his cost.
This same rule shall be observed if he
does it in contravention of the tenor of the
obligation. Furthermore, it may be decreed
that what has been poorly done be
undone. (1098)
34. Delay occurs when:
a. The date of payment arrive
b. The creditor demand for the fulfillment
of the obligation
c. Anytime
d. The day after the date of payment
agreed upon
35. A and B entered into a contract stating
that A shall pay B P100,000.00 on or
before Christmas Day of 2018 without
need of demand. Supposing that after
Christmas 2018, A has not yet paid B and
that B has yet to make any demand from
A to pay. In this case:
a. A is no longer liable to pay B P100,000
b. A is still liable to pay B P100,000
c. A is liable to pay B damages only
d. A is liable to pay B P100,000 plus
damages
36. This will not result to liability for
damages:
upon him. From the moment one of the
parties fulfills his obligation, delay by the
other begins.
Art. 1170. 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.
KINDS OF OBLIGATIONS

a. Fraud
37. The following are primary classes of
b. Delay obligations except:
c. Performance not according to what was
agreed upon
a. pure and conditional
d. All of the above will result to liability for
damages b. alternative and facultative
c. real and personal
d. joint and solidary

Art. 1169. Those obliged to deliver or to do

something incur in delay from the time the 38. An obligation that does not depend on
obligee judicially or extrajudicially any condition is called
demands from them the fulfillment of their
obligation.
a. Facultative
However, the demand by the creditor shall b. Alternative
not be necessary in order that delay may
exist: c. Resolutory

(1) When the obligation or the law d. Pure

expressly so declare; or
(2) When from the nature and the 39. This is demandable at once:
circumstances of the obligation it appears
that the designation of the time when the
thing is to be delivered or the service is to
a. Obligation that is based on a
be rendered was a controlling motive for
suspensive condition
the establishment of the contract; or
b. Obligation that is based on a resolutory
(3) When demand would be useless, as
condition
when the obligor has rendered it beyond
his power to perform. c. Obligation with a period
d. Joint obligation
In reciprocal obligations, neither party
incurs in delay if the other does not
comply or is not ready to comply in a 40. These kinds of obligations are
proper manner with what is incumbent demandable at once except:

a. Pure obligation
b. Obligations which contains a resoutory
condition
c. Facultative Obligations
d. None of the above
Art. 1179. Every obligation whose
performance does not depend upon a
future or uncertain event, or upon a past
event unknown to the parties, is
demandable at once.
Every obligation which contains a
resolutory condition shall also be
demandable, without prejudice to the
effects of the happening of the event.
41. A got a loan worth P100,000.00 from
B. A binds himself to pay B when his
financial condition would allow him to do
so. A’s obligation to pay B in this case is:
a. An example of a pure obligation
b. An example of an obligation with a
potestative condition
c. An example of an obligation with a
period
d. An example of an obligation with a
resolutory condition
Art. 1180. When the debtor binds himself
to pay when his means permit him to do
so, the obligation shall be deemed to be
one with a period, subject to the provisions
of Article 1197.
42. This is void:
a. Suspensive condition
b. Facultative condition
c. Unilateral condition
d. Potestative condition
43. An event that is both future and
uncertain upon which the existence or
extinguishment of an obligation is made to
depend is called:
a. Fortuitous event
b. Condition
c. Period
d. Day certain
44. A past event may be considered a
condition:
a. False since a condition must be
something that will happen in the future
b. False since an event that has happened
in the past cannot be condition
c. True only if that past event is unknown
to both parties
d. True even if the past event is known to
one party as long as it is still unknown to
the other party
45. A and B had an agreement where A is
obliged to give something to B. The
obligation is based on C passing the CPA
Board Exam. In this case:
a. A’s obligation is based on a casual
condition and is valid
b. A’s obligation is based on a potestative
condition and is not valid
c. A’s obligation is based on a mixed
condition and is not valid
d. A’s obligation is based on a casual
condition and is not valid
Art. 1181. In conditional obligations, the
acquisition of rights, as well as the
extinguishment or loss of those already
acquired, shall depend upon the
happening of the event which constitutes
the condition.
Art. 1182. When the fulfillment of the
condition depends upon the sole will of the
debtor, the conditional obligation shall be
void. If it depends upon chance or upon
the will of a third person, the obligation
shall take effect in conformity with the
provisions of this Code.
(i) Suspensive v. resolutory conditions:
Suspensive Condition– the happening of
which gives rise to an obligation
Resolutory Condition – the happening of
which extinguishes the obligation
(ii) Potestative, casual and mixed
conditions:
Potestative condition – where the
fulfillment depends upon one‘s will (either
the debtor, creditor or a third person)
Casual condition – when the fulfillment of
the condition depends upon chance
Mixed condition – when the fulfillment of
the condition depends partly upon the
creditor and or a third party
(iii) Impossible conditions
Impossible Condition – that which is not
capable of fulfillment because it is contrary
to the law of nature or contrary to law,
morals, public order or public policy.
46. Obligations based on this condition is
annulled:
a. Impossible condition
b. Condition contrary to good customs or
public policy
c. Condition that is prohibited by law
d. All of the above
47. If A binds himself to give B P1,000 if B
will cause harm to C, the:
a. Obligation is void
b. Obligation becomes demandable at
once
c. The obligation is subject to impossible
condition
d. None of the above
48. If A binds himself to give B P1,000 if B
will not cause harm to C, the:
a. Obligation is void
b. Obligation becomes demandable at
once
c. The obligation is subject to impossible
condition
d. None of the above
Note – “will not cause harm” Negative
impossible thing
Art. 1183. Impossible conditions, those
contrary to good customs or public policy
and those prohibited by law shall annul the
obligation which depends upon them. If
the obligation is divisible, that part thereof
which is not affected by the impossible or
unlawful condition shall be valid.
The condition not to do an impossible
thing shall be considered as not having
been agreed upon.
49. An obligation where only one of the
parties is bound to fulfill a prestation:
a. Personal
b. Divisible
c. Unilateral
d. Joint
50. Obligations arising from the same
cause where each party is a debtor and a
creditor of the other:
a. Solidary
b. Pure
c. Alternative
d. Reciprocal
51. This is when the debtor is bound by
different prestations:
a. Alternative obligation
b. Facultative obligation
c. Joint obligation
d. Solidary obligation
52. This is when the debtors answer only
for their part:
a. Joint obligation
b. Solidary obligation
c. Facultative obligation
d. Alternative obligation
53. Juan and Maria had an agreement that
Juan will give his car to Maria if she will
graduate cum laude in April 2012. In her
last semester, Maria got a failing grade
that makes her ineligible for graduation in
April 2012. In this case:
a. Juan should take care of the car until
April 2012 for Maria since the obligation is
to deliver a determinate thing
b. Juan may sell his car to Pedro without
waiting for April 2012
c. Juan may be forced to deliver to Maria
the car only after graduation
d. Juan may be forced to give the car to
Maria since the car is considered owned
by Maria at the time of their agreement
Art. 1184. 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.
54. A obliged to give B P100,000 if B’s
favorite basketball team will not win the
championship. The legal consequence of
this agreement is:
a. A should pay B P100,000 if the
basketball team loses the championship
b. A should pay B even before another
team wins championship if the team was
eliminated from the finals
c. A should pay B the moment it becomes
evident that the team will not win the
championship for whatever reason
d. All of the above
Art. 1185. 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.
If no time has been fixed, the condition
shall be deemed fulfilled at such time as
may have probably been contemplated,
bearing in mind the nature of the
obligation.
55. There is constructive fulfillment of a
condition when:
a. The obligor voluntarily prevents the
fulfillment of a suspensive condition or
condition precedent
b. The obligor voluntarily prevents the
fulfillment of a resolutory condition or
condition subsequent
c. There is impossible condition
d. None of the above
Art. 1186. The condition shall be deemed
fulfilled when the obligor voluntarily
prevents its fulfillment.
56. Mario borrowed the laptop of Trixie.
The agreement was for Mario to return the
laptop to Trixie next Monday.
Unfortunately, a fire that occurred on
Sunday gutted Mario’s house. Mario was
not able to save the laptop of Trixie
because the fire was so sudden. In this
case:
a. Mario should pay the value of the laptop
to Trixie but without interest
b. Mario should pay the value of the laptop
to Trixie subject to interest
c. Mario should pay the value of the laptop
to Trixie and damages because there are
important files in the said laptop belonging
to Trixie
d. Mario is not liable to pay Trixie
57. Joey is indebted to Maricel in the
amount of P10,000.00. Maricel gave Joey
the option to just give to her his used
cellphone amounting to P5,000.00 instead
of paying the amount of his indebtedness.
Joey has yet to make up his mind what to
give to Maria when he negligently lost his
cellphone. In this case:
a. Joey is liable to Maricel of damages
because he was negligent
b. Joey is not liable to Maricel of damages
even if he was negligent
c. Joey is no longer liable to pay Maricle
his debt amounting to P10,000.00
d. Joey is only liable to Maria in the
amount of P5,000.00
58. A promised to deliver his car with plate
number XXX111 to B on the condition that
B will graduate with honors. The legal
effect of such agreement is:
a. A is relieved from the obligation if the
car was lost due to fortuitous event before
B’s graduation.
b. A will be liable to B if the car was lost
due to the fault of A.
c. A should pay for the repair of the car if
the car was damaged due to A’s fault.
d. All of the above
59. A certain diamond ring owned by Mrs.
Cruz was stolen the night before Mrs.
Cruz deliver the same to Mrs. Santos
based on their agreement. In this case:
a. The diamond ring is considered lost
b. Mrs. Cruz is liable to pay Mrs. Santos
damages
c. Mrs. Cruz is still liable to deliver the
diamond ring to Mrs. Cruz
d. All of the above
60. A promised to give his cellphone to B
on condition that B will graduate with
honors. The legal consequence if the
cellphone deteriorates would be:
a. A’s obligation is extinguished regardless
whether A was at fault or not
b. B will bear the cost of the repair of the
cellphone if the deterioration was not due
to A’s fault
c. A cannot rescind the obligation
regardless whether the deterioration is
due to A’s fault or not
d. None of the above is correct
Art. 1189. When the conditions have been
imposed with the intention of suspending
the efficacy of an obligation to give, the
following rules shall be observed in case
of the improvement, loss or deterioration
of the thing during the pendency of the
condition:
(1) If the thing is lost without the fault of
the debtor, the obligation shall be
extinguished;
(2) If the thing is lost through the fault of
the debtor, he shall be obliged to pay
damages; it is understood that the thing is
lost when it perishes, or goes out of
commerce, or disappears in such a way
that its existence is unknown or it cannot
be recovered;
(3) When the thing deteriorates without the
fault of the debtor, the impairment is to be
borne by the creditor;
(4) If it deteriorates through the fault of the
debtor, the creditor may choose between
the rescission of the obligation and its
fulfillment, with indemnity for damages in
either case;
(5) If the thing is improved by its nature, or
by time, the improvement shall inure to the
benefit of the creditor;
(6) If it is improved at the expense of the
debtor, he shall have no other right than
that granted to the usufructuary.
61. A is bound to give B his watch while B
is bound to give A his dog. In case the dog
dies:
a. A is still bound to give B his watch
regardless whether B was at fault or not
b. A is no longer bound to give his watch
to B
c. A is only bound to give B his watch only
when B was not at fault
d. None of the above is correct
Art. 1191. The power to rescind
obligations is implied in reciprocal ones, in
case one of the obligors should not
comply with what is incumbent upon him.
The injured party may choose between the
fulfillment and the rescission of the
obligation, with the payment of damages
in either case. He may also seek
rescission, even after he has chosen
fulfillment, if the latter should become
impossible.
The court shall decree the rescission
claimed, unless there be just cause
authorizing the fixing of a period.
This is understood to be without prejudice
to the rights of third persons who have
acquired the thing, in accordance with
Articles 1385 and 1388 and the Mortgage
Law. (1124)
Art. 1192. In case both parties have
committed a breach of the obligation, the
liability of the first infractor shall be
equitably tempered by the courts. 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.
62. A is bound to pay B P100,000 on or
before June 1, 2020. A believing that the
obligation is due paid B the entire amount.
In this case:
a. A cannot recover from the amount.
b. A may recover from B the amount paid.
c. A may recover from B the entire amount
with interest.
d. None of the above.
Art. 1195. 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, may be recovered, with the
fruits and interests.

63. In an obligation with a period, the
period is:
a. For the benefit of the debtor only
b. For the benefit of the creditor only
c. For the benefit of both the debtor and
the creditor
d. None of the above is correct
Art. 1196. Whenever in an obligation a
period is designated, it is presumed to
have been established for the benefit of
both the creditor and the debtor, unless
from the tenor of the same or other
circumstances it should appear that the
period has been established in favor of
one or of the other.
64. The debtor shall lose his right to make
use of the period when:
a. When after the obligation has been
contracted, he becomes insolvent, unless
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 ones equally
satisfactory.
d. All of the above.
Art. 1198. The debtor shall lose every right
to make use of the period:
(1) When after the obligation has been
contracted, he becomes insolvent, unless
he gives a guaranty or security for the
debt;
(2) When he does not furnish to the
creditor the guaranties or securities which
he has promised;
(3) 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 ones equally
satisfactory;
(4) When the debtor violates any
undertaking, in consideration of which the
creditor agreed to the period;
(5) When the debtor attempts to abscond.
65. A is bound to give B any of the
following,P10,000 in cash, his Labrador
dog, or his cellphone. In this case:
a. A can compel B to accept part in cash
and another dog.
b. A has the right to choose which one to
deliver unless there was an agreement to
the contrary.
c. B has the right to choose which on
c. B has the right to choose which one
should A deliver unless there was an
agreement to the contrary.
d. None of the above. *
Art. 1199. A person alternatively bound by
different prestations shall completely
perform one of them.
The creditor cannot be compelled to
receive part of one and part of the other
undertaking.
Art. 1200. The right of choice belongs to
the debtor, unless it has been expressly
granted to the creditor.
The debtor shall have no right to choose
those prestations which are impossible,
unlawful or which could not have been the
object of the obligation.
Art. 1201. The choice shall produce no
effect except from the time it has been
communicated.
66. Tito, Vic and Joey are liable to Jose
jointly and severally in the amount of
P30,000.00. In this case:
a. Jose can ask Tito to pay the entire
amount
b. Jose cannot ask Tito to pay the entire
amount
c. Jose should ask the three, Tito, Vic and
Joey to pay if she wants to be paid the
entire amount
d. Jose can ask his debtors to pay their
respective share only
67. Pilo and Steph are solidarily obliged to
give Minda a specific car worth
P500,000.00. The car was lost because
of the fault of Steph. Hence, Minda asked
them to pay the amount of P500,000.00.
Pilo is ready to pay his share but Steph
cannot. In this case:
a. Minda can compel Pilo to pay the entire
amount
b. Minda cannot compel Pilo to pay the
entire amount
c. Pilo is relieved from his obligation
because the car was lost due to Steph’s
fault
d. The obligation to deliver the car was
extinguished because Pilo had nothing to
do with the loss
68. Ronnie hired Allan to forcibly get
Ging’s necklace. They agreed that if Allan
will fail in his mission, he should pay
Ronnie P5,000.00. In this case:
a. Allan can just pay P5,000 if he does not
want to do the act of getting Ging’s
necklace
b. Allan should pay Ronnie P5,000 is he
fails to get Ging’s necklace
c. Allan can refuse to do what Ronnie asks
him to do and also refuse to pay the
P5,000
d. Allan cannot refuse to do what Ronnie
asks him to do because of his contract
with Ronnie
69. Chona wanted to buy a new cellphone.
Her friend Regidor knew about it and
wanted to impress Chona. So he bought
the exact model of the cellphone Chona
wanted to buy. He did it without Chona’s
consent. Unknown to Regidor, Chona
could have availed of 25% discount from a
seller. In this case:
a. Chona should pay the entire amount to
Regidor
b. Chona is only liable to pay 75% of the
amount of the cellphone
c. Chona is only liable to pay 25% of the
amount of the cellphone
d. Chona is not liable at all to Regidor
70. Troy is indebted to James in the
amount of P50,000. As a security, Troy
offered his diamond-embedded ring that is
coveted by Missy. Missy paid the loan of
Troy to James thinking that Troy will
default. She did it without Troy’s consent.
In this case:
a. Missy can get Troy’s ring if he cannot
pay the P50,000
b. Missy cannot get Troy’s ring even if he
fails to pay
c. Troy cannot be forced to pay Missy
because she paid the loan without Troy’s
consent
d. Troy is only liable to give Missy the ring
71. Joshua owed Katrina P100,000
subject to 10% interest (simple interest
only). Joshua paid Katrina P20,000. How
much is not Joshua’s indebtedness?
a. P100,000
b. P90,000
c. P80,000
d. P20,000
72. Jose transacts in US Dollars. She was
liable to pay US$ 10,000 to XYC
Company. A law was later passed
declaring it illegal to pay in US Dollars or
in any other foreign currency. In this case:
a. Jose is no longer liable to XYC
Company because he is release from
liability when payment in US Dollars
became legally impossible
b. Jose should still pay XYC Company
US$ 10,000 because that was the contract
c. Jose should pay in Philippine Peso
d. Jose was never in debt to XYC
Company because the contract was not in
Philippine legal tender
73. A contract is:
a. A juridical necessity to perform an
obligation for another person
b. An agreement wherein at least two
persons agree that they will give or do
something for the other
c. A choice to give, to do or not to do
d. A meeting of minds between two
persons whereby one will pay a sum of
money to the other person
Art. 1305. 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.
74. The parties to a contract:
a. Are free to stipulate on the terms and
conditions of the contract subject to
certain limitation
b. Are free to stipulate on the terms and
conditions of the contract without any
limitation at all
c. Are not free to stipulate on the terms
and conditions in all cases
d. Are not free to stipulate on the terms
and conditions in certain cases
75. An autocontract is:
a. A contract where two distinct persons
enter into it
b. A contract were one person contracts
with himself or herself
c. A contract where a party has already a
prepared form of contract and the other
party just have to take it or leave it
d. A contract where only one of the parties
has an obligation
76. Contracts may be classified according
to its importance or dependence on
another contract as follows:
a. Onerous, gratuitous or remunerative
contracts
b. Principal, accessory or preparatory
contracts
c. Nominate or innominate contracts
d. Consensual, real or formal contracts

77. A contract wherein only one of the
parties has an obligation is called:
a. Unilateral contract
b. Bilateral contract
c. Commutative contract
d. Aleatory contract
Art. 1306. 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.
78. This is NOT generally required in order
to make a contract valid:
a. Consent of the parties
b. Object of the contract
c. Cause of the contract
d. Specific form of the contract
Art. 1318. There is no contract unless the
following requisites concur:
(1) Consent of the contracting parties;
(2) Object certain which is the subject
matter of the contract;
(3) Cause of the obligation which is
established.
79. The meeting of the offer and the
acceptance is called:
a. Consent
b. Cause
c. Communication
d. Consideration
80. Consent in a contract means:
a. The offer of one of the parties
b. The acceptance of the offer subject to a
certain condition
c. The offer of several options
d. The meeting of the offer and
acceptance
81. Mario is trying to sell to Trixie his
merchandise. He is offering his laptop to
Trixie for P20,000.00. Trixie asked Mario
for a discount. Mario responded that he
will ask his boss if he can lower the price.
In this case:
a. The contract of sale is perfected
b. There is a contract of sale but it is
unenforceable
c. There is no contact yet
d. Trixie should pay Mario the entire
amount of P20,000.00
Art. 1319. Consent is manifested by the
meeting of the offer and the acceptance
upon the thing and the cause which are to
constitute the contract. The offer must be
certain and the acceptance absolute. A
qualified acceptance constitutes a
counter-offer.
Acceptance made by letter or telegram
does not bind the offerer except from the
time it came to his knowledge. The
contract, in such a case, is presumed to
have been entered into in the place where
the offer was made.
82. Tony offered to Paula his 20 moblie
phones for P10,000.00 each. Paula
answered that she is willing to buy the
cellphone, for the price but just 15 pieces.
Is the contract perfected:
a. No, because there is a qualified
acceptance which constitutes an offer by
the buyer
b. Yes, because there perfected sale
because the number of pieces is merely
incidental and the items are divisible and
capable of partial delivery
c. Yes, because there was already
acceptance
d. No, because the offer is not yet certain
83. A qualified acceptance constitutes:
a. Acceptance
b. Counter-offer
c. Meeting of the minds
d. All of the above
Art. 1319. Consent is manifested by the
meeting of the offer and the acceptance
upon the thing and the cause which are to
constitute the contract. The offer must be
certain and the acceptance absolute. A
qualified acceptance constitutes a
counter-offer.
Acceptance made by letter or telegram
does not bind the offerer except from the
time it came to his knowledge. The
contract, in such a case, is presumed to
have been entered into in the place where
the offer was made.
Art. 1320. An acceptance may be express
or implied.
84. The principle that states that the
contract is binding only between the
parties is known as:
a. Relativity
b. Mutuality
c. Obligatory force
d. Freedom to stipulate
Art. 1308. The contract must bind both
contracting parties; its validity or
compliance cannot be left to the will of one
of them.
85. The principle that states that the
contract takes effect only between their
assigns and heirs is known as:
a. Relativity
b. Mutuality
c. Obligatory force
d. Freedom to stipulate
86. Allan borrowed money from XYZ
Corporation. The loan was subject to an
interest rate. XYZ Corporation wants now
to increase the interest rate without the
consent of Allan. Allan, in this case, may
protest such action of XYZ Corporation by
citing:
a. Principle of autonomy of contracts
b. Principle of mutuality of contracts
c. Principle of relativity of contracts
d. Principle that parties can stipulate as
long as it is not contrary to law, morals,
good customs, public policy, and public
order
Art. 1311. Contracts take effect only
between the parties, their assigns and
heirs, except in case where the rights and
obligations arising from the contract are
not transmissible by their nature, or by
stipulation or by provision of law. The heir
is not liable beyond the value of the
property he received from the decedent.
If a contract should contain some
stipulation in favor of a third person, he
may demand its fulfillment provided he
communicated his acceptance to the
obligor before its revocation. A mere
incidental benefit or interest of a person is
not sufficient. The contracting parties must
have clearly and deliberately conferred a
favor upon a third person.
87. Contracts that are perfected by
delivery of the object of the obligation is
called:
a. Consensual contract
b. Real contract
c. Delivery contract
d. Obligatory contract
Art. 1316. Real contracts, such as deposit,
pledge and Commodatum, are not
perfected until the delivery of the object of
the obligation.
88. A owns a property for rent which was
leased by B to C without A’s consent. In
case A later ratifies to contract, the
contract of lease is:
a. Valid
b. Void
c. Voidable
d. Unenforceable
89. A owns a property for rent which was
leased by B to C without A’s consent. In
this case, the contract of lease is:
a. Valid
b. Void
c. Voidable
d. Unenforceable
Art. 1317. No one may contract in the
name of another without being authorized
by the latter, or unless he has by law a
right to represent him.
A contract entered into in the name of
another by one who has no authority or
legal representation, or who has acted
beyond his powers, shall be
unenforceable, unless it is ratified,
expressly or impliedly, by the person on
whose behalf it has been executed, before
it is revoked by the other contracting party.
90. A offered to sell his favorite car to B for
P400,000. Before B was able to accept
the offer, A died of sudden heart attack. In
this case:
a. The heirs of A is obliged to sell the car
to B
b. The heirs of A is not obliged to sell the
car to B
c. B is obliged to buy the car
d. None of the above
Art. 1323. An offer becomes ineffective
upon the death, civil interdiction, insanity,
or insolvency of either party before
acceptance is conveyed.
91. A offered to sell his favorite car to B for
P400,000. A gave B one week to accept
the offer or the car will be sold to another.
In this case:
a. A cannot withdraw his offer to B before
the lapse of one week
b. A can withdraw his offer to B after the
lapse of one week
c. A can withdraw his offer to B even after
the lapse of one week
d. None of the above
92. A offered to sell his favorite car to B for
P400,000. A gave B one week to accept
the offer or the car will be sold to another.
For this period, B paid A P2,500. In this
case:
a. A cannot withdraw his offer to B before
the lapse of one week
b. A can withdraw his offer to B after the
lapse of one week
c. A can withdraw his offer to B even after
the lapse of one week
d. None of the above
Art. 1324. When the offerer has allowed
the offeree a certain period to accept, the
offer may be withdrawn at any time before
acceptance by communicating such
withdrawal, except when the option is
founded upon a consideration, as
something paid or promised.
93. This person cannot give consent to a
contract:
a. A, a 14 year old boy
b. B, a 27 year old insane person
c. C, a 34 year of deaf-mute
d. All of the above
94. Who among the following cannot give
consent to a contract:
a. John, who is deaf and mute
b. Rebecca, who is 18 years old
c. Connie, who is in lucid interval
d. All of them may give consent to a
contract
Art. 1327. The following cannot give
consent to a contract:
(1) Unemancipated minors;
(2) Insane or demented persons, and
deaf-mutes who do not know how to write.
95. A contract entered by A, who was
drunk at the time of the contract and B
who was in a normal state of mind is:
a. Valid
b. Void
c. Voidable
d. Unenforceable
Art. 1328. Contracts entered into during a
lucid interval are valid. Contracts agreed
to in a state of drunkenness or during a
hypnotic spell are voidable.
Art. 1329. The incapacity declared in
Article 1327 is subject to the modifications
determined by law, and is understood to
be without prejudice to special
disqualifications established in the laws.
(1264)
Art. 1330. A contract where consent is
given through mistake, violence,
intimidation, undue influence, or fraud is
voidable. (1265a)
96. A needed a vehicle that can ride at
least 10 persons as his family planned to
go to Sagada. B offered his vehicle for
hire. A accepted the offer. When B
delivered the car on the agreed date, A
saw that the car can ride only 8 persons
including the driver. In this case, the
contract between A and B is:
a. Valid
b. Void
c. Voidable
d. Unenforceable
Art. 1331. In order that mistake may
invalidate consent, it should refer to the
substance of the thing which is the object
of the contract, or to those conditions
which have principally moved one or both
parties to enter into the contract.
Mistake as to the identity or qualifications
of one of the parties will vitiate consent
only when such identity or qualifications
have been the principal cause of the
contract.
A simple mistake of account shall give rise
to its correction.
97. A participated in a public auction of
several items for sale conducted by a
private auction firm. The sale was “as is
where is basis.” A participated in a bidding
for certain item which he thought will be
useful for his business. It turned out that
the items have no longer economic use. It
this case:
a. There was no mistake and the contract
of sale is perfectly valid
b. There was a mistake in this case and A
is allowed to invalidate the sale
c. There was no mistake but A can still
refund whatever he paid for the items
d. None of the above
Art. 1333. There is no mistake if the party
alleging it knew the doubt, contingency or
risk affecting the object of the contract.
98. When one party in a contract
employed serious or irresistible force in
order to wrest consent, there is:
a. Fraud
b. Violence
c. Intimidation
d. Undue influence
99. When one party in a contract was
compelled by a reasonable and well-
grounded fear of an imminent and grave
evil upon his person or property, or upon
the person or property of his spouse,
descendants or ascendants, there is:
a. Fraud
b. Violence
c. Intimidation
d. Undue influence
100. Pilo was caught stealing the laptop of
Steph. Because the laptop was damaged
due to Pilo’s act, Steph asked Pilo pay her
P30,000.00 or else, Steph will sue Pilo
and would send him to jail. Pilo signed a
contract to this effect. Later, he said that
he acted with fear because of the
intimidation employed by Steph. In this
case:
a. The contract is voidable
b. The contract is unenforceable
c. The contract is valid
d. The contract is void