Obligations & Contracts: Final Exam

Multiple Choice
Lawful, unilateral and voluntary acts that are based on the principle that no one shall be enriched or
benefited at the expense of another: *
o quasi-delicts
o quasi-contracts
o culpa contractual
o solutio indebiti

The following are requisites of an obligation, except: *

o passive subject/ debtor/ obligor
o active subject/ creditor/ obligee
o efficient cause
o demand

It is the voluntary administration of the property of another without his consent. *

o negotiorum gestio
o solutio indebiti
o quasi-delict
o contract

Unless the law or stipulation of the parties requires another standard of care, every person obliged
to give something is also obliged to take care of it with: *
o extraordinary diligence
o diligence of a father of a good family
o diligence of a good father of a family
o good diligence of a father of a family

If the creditor has a right that is enforceable against a definite passive subject, this right is known
as: *
o personal right
o real right
o natural right
o civil right

Under a contract, X bound himself to render tutorial services for Y. Determine the passive subject:  *
o X
o Y
o Rendering tutorial services
o Contract
o Quasi-contract

Under a contract, X bound himself to render tutorial services for Y. Determine the juridical tie:  *
o X
o Y
o Rendering tutorial services
 o Contract
o Quasi-contract

Under a contract, X bound himself to render tutorial services for Y. Determine the active subject:  *
o X
o Y
o Rendering tutorial services
o Contract
o Quasi-contract

Under a contract, X bound himself to render tutorial services for Y. Determine the prestation:  *
o X
o Y
o Rendering tutorial services
o Contract
o Quasi-contract

Carla offers to sell her house to Charles for Php 1,000,000.00. Charles requested if he would accept
Php 950,000.00. Which of the following is correct? *
o The contract is void because there is no consent.
o The response of Charles is a counter-offer because it is not absolute.
o The response of Charles is a mere request, hence the offer is still effective.
o The contract is rescissible because of the because the price is not yet agreed upon.

The following are the rules in innominate contracts: *

o It is based on the stipulations of the parties.
o The provisions of the laws on obligations and contracts prevail.
o The rules on the most analogous nominate contracts will govern.
o The customs of the place govern.

The following are principal sources of law, EXCEPT: *

o decisions of foreign tribunals
o administrative orders
o jurisprudence
o statutes

Statement I: Obligations arising from law are presumed. Statement II: If it cannot be determined
whether the obligation is joint or solidary, it is presumed to be solidary. *
o Both statements are INCORRECT.
o Both statements are CORRECT.
o Only Statement I is correct.
o Only Statement II is correct.

In which of the following cases is demand NOT required to be made on the due date of the
obligation in order for delay to exist? *
o when it was stipulated by the parties that demand need not be made
o when the law provides that demand need not be made
o when the obligation does not indicate whether demand must be made or not on the due date
 o when time is of the essence of the contract

D borrowed 50,000 from C. C dies before he has collected the debt. Which of the following
statements is correct? *
o C’s heirs can collect from D although D and C did not agree that the right to the debt will pass on the
heirs of C.
o C’s heirs cannot collect because the credit right is personal to C.
o C’s heirs can collect only if D and C agreed that the right to the debt will pass on the heirs of C.
o C’s heirs cannot collect because the law prohibits the transmission of the credit right.

In which of the following cases is there no liability for loss due to fortuitous events?  *
o when the debtor delays
o when the parties so stipulated that there shall be liability even in case of loss due to fortuitous events
o when the nature of the obligation requires the assumption of the risks
o when the obligation is to deliver a determinate thing and there was no stipulation as to the liability of the
debtor in case of loss due to fortuitous events

The following are the remedies of the creditor to pursue his claims against the debtor, except to:  *
o pursue the property owned and in the possession of the debtor
o exercise all the rights and bring all the actions of the debtor (accion subrogatoria)
o impugn the acts which the debtor may have done to defraud his creditors (accion pauliana)
o compel the debtor to perform the service in obligations to do

Carla executed a promissory note in favor of Charles. The same promissory note was negotiated
back to Charles by Carla. Hence, the obligation arising from the execution of the said promissory
note was already extinguished because of: *
o Novation
o Remission
o Confusion or Merger
o Payment

On a certain year, D was obliged under a contract executed on January 1, 2014 to deliver an
agricultural land to C if C graduates from college. C graduated on April 1, 2014. C has a right over
the agricultural land beginning on: *
o April 1, 2014
o January 1, 2014
o on the date D gives the land to C
o the period should be fixed by the court so that it can be determined when C is entitled to the fruits

Under a contract executed on January 2, 2014, D obliged himself to give a specific car to C on
February 3, 2014. On February 1, 2014, C demanded the delivery of the car but D did not comply.
The following day, the car was struck by lightning and was totally wrecked. What is the effect of this
loss? *
o The obligation of D is extinguished because the loss is due to fortuitous event and D was not in default.
o The obligation of D is not extinguished because D can deliver another car.
 o The obligation of D is not extinguished because D was in default.
o The obligation of D is not extinguished because the demand was not made on due date.

On January 1, 2014, D promised to deliver 100 sacks of chicken dung to C on February 1, 2014. On
February 1, 2014, C demanded the delivery of the 100 sacks of rice from D but D did not comply.
The following day, a fire of undetermined origin destroyed D’s warehouse together with all sacks of
chicken dung stored therein and from which D intended to get the 100 sacks of chicken dung for
delivery to C. What is the effect of this loss? *
o D’s obligation to deliver 100 sacks of rice to C is extinguished, the cause of the loss being a fortuitous
event.
o D’s obligation to deliver 100 sacks of rice to C is not extinguished because he can get 100 sacks of rice
from other sources.
o D’s obligation to deliver 100 sacks of rice to C is not extinguished because D was in default.
o D’s obligation is to pay damages because he was in default.

If the buyer failed to pay the down payment on time but the seller nevertheless accepted it without
objection, the legal effect is: *
o The buyer is liable for damages due to delay.
o The obligation of the buyer is not extinguished.
o The obligation of the buyer is deemed fully complied with.
o The buyer is liable for negligence in not raising an objection.

The following are effects of mora solvendi, EXCEPT: *

o the debtor is guilty of breach
o the debtor is liable for damages
o the debtor is liable for loss even if through fortuituous event
o the debtor is not liable for loss in case of fortuitous event

Which of the following obligations is NOT demandable at once? *

o D to give his car to C. No date was fixed by the parties for the date of delivery.
o D to give his car to C until C completes his course in BS Accountancy.
o D to give his car to C until X dies.
o D to give C his car should C enroll in BS Accountancy.

It is the performance of an obligation in accordance with the stipulations and terms of the contract
or agreement: *
o constructive fulfilment
o extraordinary diligence
o culpa contractual
o compliance in good faith

On January 1, 2014, D obtained from C a loan of 100,000. The loan is secured by a chattel mortgage
on D’s car and is payable on December 31, 2014. On September 26, 2014, the car was taken at
gunpoint from D while he was starting its engine at a parking lot of a department store.  *
 o D’s loan obligation is extinguished. However, D must give a property which C may sell to satisfy his
claim. (
o D’s loan obligation subsists. However, C may demand its immediate payment unless D gives another
security.
o D’s loan obligation subsists. However, C may not demand immediate payment since the loss of the
security was without the fault of D. D, moreover, is not required to give a new security.
o D’s loan obligation is extinguished together with the mortgage since the loss of the car was without the
fault of D.

Under a contract between D and C, D is obliged to deliver 10 bags of pure muscovado sugar to C 10
days after execution of their agreement. On the due date, D delivered to C 10 bags of muscovado
sugar which he mixed with Chocnut and brown sugar. *
o the contract is voidable because of the fraud employed by D
o the contract is valid because the fraud employed by D does not affect the validity of the contract; D is
however obliged to pay damages to C
o the contract is void because of the fraud employed by D in the performance of his obligation
o the contract is rescissible because of the damages suffered by C

A, B, and C are liable in solidum to X for 12,000. Later, B became insolvent. *

o X can collect from C 8,000.
o X can collect from C 4,000.
o X can collect from C 12,000.00
o X can collect nothing from C.

D is obliged to give C a specific car if C passes LAW 1 this semester. D’s obligation is an example
of: *
o a pure obligation
o an obligation with a suspensive condition
o an obligation with a resolutory condition
o an obligation with a period

Which of the following obligations is not immediately demandable? *

o pure obligation
o obligation with a resolutory condition
o obligation with an in diem period
o obligation with ex die period

When the debtor binds himself to pay when his means permit him to do so, the obligation is:  *
o an obligation with a resolutory condition
o a pure obligation
o an obligation with a suspensive condition
o an obligation with a suspensive period

Whenever a period is designated in an obligation, the said period shall be presumed to have been
established for the benefit of: *
o the debtor
o the creditor
o both the debtor and the creditor
 o neither of the parties

The debtor shall lose the right to make use of the period in the following cases, except:  *
o when the guaranty or security is lost and he gives new ones
o when he violates any undertaking in consideration of which the creditor agreed to the period
o when the debtor attempts to abscond
o when he does not furnish any guaranty or security which he has promised

An obligation ceases to be alternative and becomes a simple obligation in the following cases,
EXCEPT: *
o when the debtor has communicated his choice to the creditor
o when the right of choice has been expressly granted to the creditor and his choice has been
communicated to the debtor
o when among the several prestations that are due only one is practicable
o when three prestations are due but one of them is unlawful or impossible

The following obligations are divisible, except an: *

o obligation to give definite things
o obligation which has for its object the execution of a certain number of days of work
o obligation which has for its object the accomplishment of work by metrical units
o obligation which by its nature is susceptible of partial performance

D is obliged to give C a specific watch, a specific ring, or a specific bracelet. The parties agreed that
C will have the right to choose the thing which will be given to him. Before C could make his choice,
the watch and the ring are lost through D’s fault, successively. What is the right of C?  *
o C may choose the delivery to him of the bracelet, or the price of the watch, or the price of the ring plus
damages.
o C cannot choose the price of the watch or the price of the ring because the said objects have already
been lost.
o C can only choose to have the bracelet because anyway, D can still perform his obligation.
o C can only choose to have delivery of the bracelet or the price of the ring which was the last item that
was lost plus damages.

D is obliged to give C a specific phone. The parties agreed that D may give a specific laptop as
substitute. Which of the following statements is true? *
o If the phone is lost through a fortuitous event before substitution, the obligation is extinguished.
o If the laptop is lost through fortuitous event before substitution, the obligation is extinguished.
o If the phone is lost through fortuitous event after substitution, the obligation is extinguished.
o If the phone is lost through the debtor’s fault after substitution, the debtor shall pay damages.

A, B, C, and D are obliged to give V P20,000.00: *

o V may collect from A P20,000.00
o V may collect from A P5,000.00
o V may collect from A P1,000.00
o V may collect from A P4,000.00
A, B, C, and D, solidary debtors, are obliged to give V, W, X, Y, and Z, solidary creditors the amount of
P20,000.00: *
o V may collect from D P20,000.00
o V may collect from D P4,000.00
o V may collect from D P5,000.00
o V may collect from D 1,000.00

A, 25 years old, B, 35 years old, and C, 15 years old, are solidary debtors of X in the amount of
P9,000.00: *
o X may collect from A P9,000.00
o X may collect from A P6,000.00
o X may collect from A P1,000.00
o X may collect nothing because the obligation is voidable, C being a minor

In obligations with a penal clause, the creditor as a rule may recover from the debtor in case of
breach the following: *
o the penalty as agreed upon, plus damages and interest
o the penalty and damages
o the penalty and interest
o only the penalty

Consider the following statements:

I. The nullity of the principal obligation carries with it the nullity of the penal clause.
II. The nullity of the principal obligation does not carry with it the nullity of the penal clause.
III. The nullity of the penal clause carries with it the nullity of the principal obligation.
IV. The nullity of the penal clause does not carry with it the nullity of the principal obligation.  *
o I and III are true.
o I and IV are true.
o II and III are true.
o II and IV are true.

On July 1, 2013, D obliged himself to give C P50,000.00 if C will marry X on or before December 31,
2013. The condition of the obligation is a: *
o positive condition
o negative condition
o joint condition
o impossible condition

Refer to the previous question. Which of the following is NOT correct? *

o The obligation of D is demandable if C marries X on or before December 31, 2013.
o The obligation of D is extinguished if it is already January 1, 2014 and C has not yet married X.
o The obligation of D is extinguished on December 2, 2013 if X dies on the said date before marrying C.
o The obligation is demandable if C marries X on January 1, 2014.

Which of the following is not considered a conditional obligation? *

o D to pay C P50,000.00 as soon as D has the means
o D to pay C P50,000.00 if C marries Y.
 o D to pay C P50,000.00 if C tops the Law 1 departmental examinations
o D to pay C if X dies of malaria

A, B, and C are solidarily liable to X for P30,000.00. A pays X the whole amount due. C, however, is
insolvent. *
o A alone will bear the share of C who is insolvent since it was A who voluntarily made the payment
o A can collect from B P10,000.00.
o A can collect from B P15,000.00
o A can demand a refund of P10,000.00 from X pertaining to C’s share since C is insolvent

A, B, and C executed the following promissory note:“I promise to pay D or order the sum of
P30,000.00 on June 30, 2004.(sgd.) A(sgd.) B(sgd.) C” On June 30, 2004, D can collect from A:  *
o 10,000.00
o 30,000.00
o 20,000.00
o Nothing, because the note is void since it says “I promise..” but was signed by three persons

An obligation where various prestations are due and the performance of all of them is required in
order to extinguish the obligation is known as: *
o alternative obligation
o facultative obligation
o conjunctive obligation
o simple obligation

Alternative obligation and facultative obligation are similar in which of the following respects?  *
o The right of choice may be given either to the debtor or creditor.
o Several prestations are due.
o Only one prestation is due but the debtor may render another substitution.
o The obligation becomes a simple obligation once the choice of the prestation is made and
communicated.

A, B, and C are solidary debtors of X, Y, and Z solidary creditors, in the amount of 2,700. X
renounces the whole obligation without the consent of Y and Z. The debtors accepted the
renunciation. (A) (B) . (C) N (D) *
o The whole obligation is extinguished but X must give to Y and Z their proportionate share of 900 each.
o Only 900 is extinguished.
o No part of the obligation is extinguished.
o Only 300.00 is extinguished.

Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-
debtors: *
o if such payment was made before the obligation is due
o if such payment was made after the obligation has prescribed or become illegal
o if such payment was made in the compliance with the demand made to him by all the creditors
o if such payment was made after the obligation has become due and demandable and notice of payment
was made only to him

The following words are used to indicate joint liability, EXCEPT: *

 o Jointly and severally
o Proportionately
o Mancomunadamente
o Pro rata

A & B are solidary debtors of C in the amount of P10,000.00. This is a case of: *
o Mixed solidarity
o Active solidarity
o Passive solidarity
o Conventional solidarity

A & B are solidarily liable to C in the amount of P4,000.00. In an action by C against A, what is the
effect if A’s defense is B’s insanity at the time of the perfection of the contract?  *
o His obligation is extinguished.
o He is released from liability for B’s share
o He must pay the entire P4,000.
o He is liable to pay for damages.

Carla borrowed a sum of money from Charles with a certain rate of interest. Carla now wants to
increase the rate of interest with the consent of Charles but with the consent Macon who is the
creditor of Charles. What principle in contracts prohibits Carla from increasing the rate of interest?  *
o autonomy of contracts
o relativity of contracts
o mutuality of contracts
o consensuality of contracts

Obligations to pay taxes and support one’s family are: *

o obligations ex maleficio
o obligations ex contractu
o obligations ex quasi-contractu
o obligations ex lege

The following are the remedies of the creditor to pursue his claims against the debtor, except to:  *
o pursue the property owned and in the possession of the debtor
o exercise all the rights and bring all the actions of the debtor
o impugn the acts which the debtor may have done to defraud his creditors
o compel the debtor to perform the service in obligations to do.

When an injury or damage is caused to another, there being fault or negligence and there is no pre-
existing contractual relation between the parties, the source of the obligation is: *
o Law
o Contracts
o Quasi-contracts
o Quasi-delicts

A specific thing is *

o physically segregated from all others of its kind
o particularly designated from all others of its kind
 o identified by its specie/genus/class/quality
o all of the above
o A&B
o A&C

Statement I: A solidary creditor cannot assign his rights without the consent of the others.
Statement II: The remedies of specific performance and rescission are cumulative and not
alternative remedies. *
o Both statements are INCORRECT.
o Both statements are CORRECT.
o Only Statement I is correct.
o Only Statement II is correct.

Rents of buildings, price of leases of lands and amounts of perpetual or life annuities are examples
of: *
o civil fruits
o industrial fruits
o natural fruits
o none of these

Statement I: In obligations with a penal clause, the penalty shall substitute the indemnity for
damages and the payment of interests in case of noncompliance, if there is no stipulation to the
contrary. Statement II: Even though the object or service may be physically divisible, an obligation is
indivisible if so provided bylaw or intended by the parties. *
o Both statements are INCORRECT.
o Both statements are CORRECT.
o Only Statement I is correct.
o Only Statement II is correct.

In a joint indivisible obligation, what is considered as joint? *

o object
o liability of the parties
o Both A and B
o either A or B, depending on the obligation

In a joint indivisible obligation, what is considered as indivisible? *

o object
o liability of the parties
o Both A and B
o either A or B, depending on the obligation

Statement I: The receipt of the principal by the creditor with reservation with respect to the interest
gives rise to the presumption that said interest has been paid. Statement II: In alternative and
facultative obligations, the choice produces no effect except from the time it has been
communicated. *
o Both statements are INCORRECT.
o Both statements are CORRECT.
 o Only Statement I is correct.
o Only Statement II is correct

Which among the following fails to state a correct legal principle? *

o The debtor in obligations to do shall be released when the prestation becomes legally or physically
impossible without the fault of the obligor.
o Obligations arising from contracts have the force of law between the contracting parties and should be
complied with in good faith.
o An indeterminate thing can be object of destruction by a fortuitous event.
o If loss or deterioration happened before substitution is made, obligor is not liable; after substitution is
communicated, he is liable for loss through delay, negligence or fraud.

I. Once the minds of the contracting parties meet, a valid contract exists whether it is reduced to
writing or not. II. When the terms of an agreement have been reduced to writing, it is considered as
containing all the terms agreed upon. *
o Only 1 is true.
o Only II is true.
o Both are true.
o Both are false.

I. Contracts are the law between the parties and they are bound by its stipulations. II. It is a rule that
a contracts freely entered between the parties should be respected since a contract is the law
between the parties. *
o Only I is true.
o Only II is true.
o Both ate true.
o Both are false.

It is an instrument authenticated by a notary public or a competent public official with the

formalities require by law. *
o private document
o memorandum of understanding
o public document
o written agreement

Carla entered into a contract of mortgage with Charles. Macon, the clerk of Carla encoded the
document and due to her negligence, the document made was that of sale instead of mortgage.  *
o The remedy is annulment.
o Parties may go to court for interpretation.
o Parties may enforce their right because the contract is enforceable.
o Reformation of instrument is proper.

Carla sold a mobile phone unit to Charles on December 08, 2021. Charles on December 15, 2021
discovered that the mobile phone unit is an imitation. The law provides that Charles can annul the
sale as a voidable contract within four years. Prescription starts from: *
o December 15, 2021 when the fraud was discovered.
o December 08, 2021 when the sale was perfected.
 o The time of delivery of the mobile phone unit to Charles
o The time they first talked about the sale of the phone.

The characteristics of consent are the following, except: *

o It should be intelligent.
o it should be free.
o It should be spontaneous
o It be honest.

A creditor, in addition to the penalty, may recover damages and interests: *

o When so stipulated by the parties
o When the obligor refuses to pay the penalty
o When the obigor is guilty of fraud
o None of the above
o A, B, & C

Which among the following is NOT a divisible obligation? *

o Obligation which has for its object the execution of a certain number of days of work
o Obligation which has for its object the accomplishment of work by metrical units
o Obligation which by its nature is susceptible of partial performance
o All of the above
o None of the above

In obligations not to do, it is considered a divisible obligation if: *

o It is a continuous obligation
o It is not a continuous obligation
o Neither A nor B, because obligations not to do are always indivisible obligations
o Either A or B