Regulatory Framework For Business Transactions COVERAGE: Obligations

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS
COVERAGE: Obligations
a. Sources of obligation their concept-law, contracts, quasi-contract, delict, quasi-delict
b. Kinds of obligation in general and under the Civil Code.
c. Specific circumstances affecting obligation in general; fortuitous event, fraud, negligence, delay, breach of
contract, the tenor of the obligation.
d. Duties of an obligor, to give, to do and not to do.
e. Extinguishment of obligation with special emphasis on payment of debts in money, mercantile documents as
media of payments, special forms of payments and effect of insolvency and bankruptcy on extinguishment of
obligation
Direction: Read and select the best answer for the following questions.
1. Article 1156 of the Civil Code defines an obligation as a

a. Juridical necessity to do or not to do.
b. Juridical necessity to give or not to give.
c. Juridical necessity to give, to do or not to do.
d. Juridical necessity to give, not to give to do or not to do.
2. Which of the following statements best describes a negative obligation?

a. It refers to an obligation which consists of giving -or 'doing something.
b. It refers to an obligation which consists to the delivery or giving of personal or real object.
c. It refers to an obligation which consists of doing a particular prestation but not delivery of an object.
d. It refers to an obligation which consists of abstaining from some act.
3. The following are the essential elements of an obligation, except

a. An active subject, who has the power to demand prestation, also known as the obligee or creditor.
b. A passive subject, who is bound to perform the prestation, also known as the obligor or debtor.
c. Object or prestation, which is the promise or particular contract to be performed in the performance of an
obligation, and may consist of giving, doing or not doing a thing.
d. Efficient cause, the tie which binds the parties to the obligation, also known as juridical tie or vinculum.
e. The form in which the obligation is manifested.
4. Among the essential elements of an obligation, which are considered the personal elements?
a. Obligee and obligor
b. Prestation and vinculum
c. Obligee and vinculum
d. Prestation and obligor
5. The following statements concerning an obligation are correct, except

a. The obligation to give is one in which the prestation consists in the delivery of a movable or an
immovable thing.
b. The obligation not to give is a positive obligation
c. The obligation to do includes all kinds of work or services
d. The obligation not to do consists in abstaining from some act.
6. The following are the requisites of a prestation or object of an obligation, except

a. It must be possible, physically and juridically.
b. It must he determinate, or, at least, determinable according to pre-established elements or criteria.
c. It must have possible equivalent in money.
d. It must be a positive obligation only.
7. The following are examples of vinculum, except

a. Relation established by law
b. Relation established by contract
c. Relation established natural obligation
d. Relation established quasi-contract or quasi-delict
8. Which of the following obligation is not unenforeeabla by a court action

a. Obligation arising from law
b. Obligation arising from contract
c. Obligation arising from quasi-contract
d. Natural obligation
9. Which of the following statements concerning the distinctions between civil obligation and natural obligation are
true?
I. Civil obligations derive their binding force from positive law, while natural obligations derive their binding
effect from equity and natural justice.
II. Civil obligations can be enforced by court action or the coercive power of public authority, while the
fulfillment of natural obligations cannot be compelled by court action but depends exclusively upon the good
conscience of the debtor.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
10. The following are examples of natural obligations that cannot he enforced by court action but depends upon the
voluntarily fulfillment of debtor, except
a. The obligation of a debtor to pay a loan evidenced by a written contract of loan but a period of 10 y-ears -
had already lapsed from maturity date without demand from creditor.
b. The obligation of a debtor to reimburse a third person who has paid the debtor's obligation after it has
already lapsed.
c. The obligation of a testate or intestate heir to pay the debt of a decedent beyond the value of the property
which he received by will or by the law of intestacy from the estate of the deceased.
d. The obligation of the employer of a "Kasambahay" to pay the 13n month pay of the latter
11. The following are the sources of civil obligation demandable in a court of law, except
a. Law
b. Contracts
c. Quasi-contracts
d. Quasi-delicts or Culpa Aquiliana or Torts
e. Delict or Crime or Acts or omissions punished by law
f. Religious doctrines
12. It is a source of an obligation that refers to the principles and regulations established in a commun It) sonic
authority and applicable to its people, whether in the form of legislation or of custom and policies recognized and
enforced by judicial decision.
a. Law
b. Contract
c. Quasi-contract
d. Quasi-delict
13. Which of the following statements concerning obligations arising from law is incorrect?
a. Only obligations expressly determined in the Civil Code or in special laws are demandable.
b. The law cannot exist as a source of obligations, unless the acts to which its principles may be applied
exist
c. The obligations and correlative rights arising from law shall be governed by the law by which they are
created.
d. The obligations derived from law are presumed.
14. The obligation of the parents to provide support to their children arises from
a. Law
b. Contracts
c. Quasi-contracts
d. Quasi-delicts
15. It is a source of an obligation that refers to meeting of minds between two persons "hereby one binds himself,
with respect to the other, to give something or to render some service.
a. Law
b. Contract
c. Quasi-contract
d. Quasi-delict
16. Which of the following statements concerning obligations arising from contracts are correct?
I. Obligations arising from contracts have the force of law between contracting parties.
II. Obligations arising from contracts should be complied with in good faith.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
17. It is a source of an obligation that refers to juridical relation which arises from certain lawful, voluntary and
unilateral act, to the end that no one may be unjustly enriched or benefited at the expense of another.
a. Relict
b. Quasi-contract
c. Contract
d. Quasi-delict
18. Which of the following statements concerning the kinds of quasi-contract is correct?
I. Negotiorum Gestio refers to the voluntary management of the property or affairs of another without the
knowledge or consent of the latter.
II. Solution Indebiti refers to the juridical relation which is created when something is received when there is no
right to demand it and it was unduly delivered through mistake.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
19. The following are examples of quasi-contracts, except

a. A person takes charge of the agency or management of business or property of another with authority or
consent of the latter.
b. A person receives something when there is no right to demand it or it was unduly delivered through
mistake.
c. A stranger gives support to a child of another person without the knowledge of the person obliged to give
support.
d. A person saves the property of another person during fire, flood, storm or other calamity without the
knowledge of the owner.
20. What is the nature of the responsibility or liability of two or more officious manager in a negotiorum gestio?
a. Generally it shall be solidary unless the management was assumed to save the thing or business from
imminent danger which will make their liability to be joint only.
b. Generally it shall be joint unless the management was assumed to save the thing or business from
imminent danger which will make their liability to be solidary.
c. It is always solidary.
d. It is always joint.
21. The officious manager in a negotiorum gestio shall be liable for any fortuitous event in any of the following
instances, except
a. If he undertakes risky operations which the owner was not accustomed to embark upon.
b. If he has preferred his own interest to that of the owner.
c. If he fails to return the property or business after demand by the owner.
d. If he assumed the management in good faith.
22. In which of the following instances will negotiorum gestio arise?

a. When the property business is not neglected or abandoned.
b. If in fact the manager has been tacitly authorized by the owner.
c. Neither A nor B.
d. Either A or B.
23. What is the nature of responsibility or liability of two or more payees when there has been payment of what is not
due?
a. Solidary
b. Joint
c. Pro-rata
d. Subsidiary
24. When will a person who accepts an undue payment of a sum of money be liable for interest?
a. When he receives the endue payment in bad faith.
b. When he receives the undue payment good faith.
c. When he receives the undue payment, regardless of being bad or good faith.
d. Under all instances.
25. When will a person who in good faith accepts an undue payment of a thing certain or determinate be responsible
for the impairment or loss of the same or its accessories and accessions?
a. When the reason of is fortuitous event.
b. In so far as he has thereby been benefited.
c. When he is not guilty of negligence.
d. He is liable in any instances.
26. It is a source of an obligation that refers any act or omission punishable by law.
a. Delict
b. Quasi-contract
c. Contract
d. Quasi-delict
27. Is a person criminally liable also liable to pay civil damages to private offended party
a. No because criminal liability means imprisonment only.
b. Yes, as a general rule, unless the crime committed does not cause civil damages.
c. Yes in all cases.
d. No unless the People of the Philippines ask for damages.
28. Article 100 of the Revised Penal Code provides that every person criminally liable for a felony is also civilly
liable. Under Article 12 of the Revised Penal Code, the following persons will not be imprisoned (exempt from
criminal liability) but will be liable for civil damages (civil liability) for their acts, except
a. An imbecile or insane person.
b. A person under 18 of age.
c. Any person who acts under the compulsion of an irresistible force.
d. Any person who acts under the impulse of an uncontrollable fear of an equal or greater injury.
e. Any person who acts under self-defense or in the performance of his official duty or a wife suffering from
battered woman syndrome who killed or injured his batterer.
29. The civil liabilities arising from crimes are as follows, except
a. Restitution which refers to restoration of the thing itself even though it be found in the possession of a
third person who has acquired it by lawful means.
b. Reparation of the damage caused which shall be determined by the Court taking into consideration of the
price of the thing and its sentimental value.
c. Indemnification for consequential damages which shall include not only those caused the injured party
but also those suffered by his family or by a third person by reason of the crime.
d. Compromise of the criminal liability.
30. What degree of evidence must be proved by the prosecution for the accused to be criminally liable?
a. Proof beyond reasonable doubt
b. Clear and convincing evidence
c. Preponderance of evidence
d. Substantial evidence
31. What degree of evidence must be proved by the plaintiff in order to recover civil damages based on contract or
quasi-delict?
a. Proof beyond reasonable doubt
b. Clear and convincing evidence
c. Preponderance of evidence
d. Substantial evidence
32. In the prosecution for the crime of criminal negligence, the accused is acquitted on the ground of failure of the
prosecution to prove his guilt beyond reasonable doubt. May the private offended party file another civil case
based on quasi-delict?
a. No because the private offended party is barred by the principle of res judicata.
b. Yes because a single act may result to different sources of obligation and crime and quasi-delict are
distinct and separate sources of civil liability.
c. No because the accused shall not be subject to double jeopardy.
d. Yes only if there is a contract between the contending parties.
33. It refers to a source of an obligation wherein a person by act or omission causes damage to another, there being
fault or negligence.
a. Contract
b. Quasi-contract
c. Quasi-delict or culpa aquiliana or torts
d. Delict
34. The following are the requisites in order that civil liability for quasi-delict or torts may exist, except
a. There is pre-existing relation between the offender and offended parties.
b. There exists a wrongful act or omission imputable to the defendant by reason of his fault or negligence.
c. There exists a damage or injury which must be proved by the person claiming recovery.
d. There must be a direct causal connection or a relation of cause and effect between the fault or negligence
and the damage or injury, or that the fault or negligence be the cause of the damage or injury.
35. Negligence or culpa which results to civil liability arising from quasi-delict or torts is also known as
a. Culpa criminal
b. Culpa aquiliana
c. Culpa contractual
d. Culpa liberal
36. The following are the distinctions between quasi-delict and crime or delict, except
a. The right violated by a quasi-delict is a public right while the right violated by a crime is a private right.
b. Every quasi-delict gives rise to liability for damages to the injured party but there are crimes from which
no civil liability arises.
c. Criminal liability can never be compromised except in criminal negligence but liability from quasi-delict
can c. be compromised.
d. In quasi-delict, criminal intent is not necessary, while in crime, criminal intent is necessary except in
criminal negligence.
e. In order to prove crime, proof beyond reasonable doubt is required but in order to prove negligence in
quasi-delict, only preponderance of evidence is needed.
37. In case of tort, when will the plaintiff or injured party be barred or precluded from recovering damages?
a. When the reason of the injury is a fortuitous event but with contributory negligence of tortfeasor.
b. When plaintiffs own negligence was the immediate and proximate cause of his injury.
c. When plaintiff's negligence was only contributory, the immediate and proximate cause of the injury being
the defendant's lack of due care.
d. When the immediate end proximate cause of his injury is the negligence of the tortfeasor.
38. The obligation arising from torts or quasi-delicts is demandable not only for one's own acts or omissions, but also
for those of persons for whom one is responsible. The following are the persons who are liable for the torts
committed by persons under their responsibility, except
a. The father and, in case of his death or incapacity, the mother, are responsible for the damages caused by
the minor children who live in their company.
b. Guardians are liable for damages caused by the minors or incapacitated persons who are under their
authority and live in their company.
c. The owners and managers of an establishment or enterprise are likewise responsible for damages caused
by their employees in the service of the branches in which the latter are employed or on the occasion of
their functions.
d. Employers shall be liable for the damages caused by their employees and household helpers acting within
the scope of their assigned tasks, even though the former are not engaged in any business or industry.
e. Teachers or heads of establishments of arts and trades shall be liable for damages caused by their pupils
and students or apprentices who are outside their custody
39. How shall persons enumerated under preceding number exempt themselves from responsibilities arising from
torts committed by persons under their responsibility?
a. By proving they exercise extraordinary diligence to prevent damage.
b. By proving that they observed ail the diligence of a good father of a family to prevent damage.
c. By proving that there is no contract between the plaintiff and defendant.
d. By proving that the guilt is not proven beyond restorable doubt.
40. What is the nature of liability of two or more persons who are liable for quasi-delict or tort?
a. Solidary
b. Joint
c. Pro-rata
d. Proportionate
41. Which of the following statements concerning quasi-delict or tort is correct?

a. Provinces, cities and municipalities shall be liable for damages for the death of, or injuries suffered by,
any person by reason of the defective condition of reads, streets, bridges, public buildings, and other
public works under their control or supervision
b. The proprietor of a building structure is responsible for the damages resulting from its total or partial
collapse, if it should be due to the lack of necessary repairs.
c. It is disputably presumed that a person driving a motor vehicle has been negligent if at the time of the
mishap, he was violating any traffic regulation.
d. The possessor of air animal or whoever may make use of one same is responsible for the damage which it
may cause, although it may escape or be lost. Thiss responsibility shall cease only in case the damage
should come from force majeure or from the fault of the person who has suffered damage.
e. In motor vehicle mishaps, the owner is solidarily liable with his driver, if the former, who was in the
vehicle, could have, by the use of the due diligence, prevented the misfortune. It is disputably presumed
that a driver was negligent, if he had been found guilty of reckless driving or violating traffic regulations
at least twice within the next preceding two months.
f. The head of a family that lives in a building or a part thereof is responsible for damages caused by things
thrown or falling from the same.
g. All of the above.
42. In the following instances, proprietors or owners are responsible for the damages caused, except
a. By the explosion of machinery which has not been taken care of with due diligence, and the inflammation
of explosive substances which have not been kept in a safe and adequate place.
b. By excessive smoke which may be harmful to persons or property.
c. By the falling of trees situated at or near highways or lanes if caused by force majeure.
d. By emanations from tubes, canals, sewers or deposits of infectious matter, constructed without
precautions suitable to the place.
43. While trying to pass each other on a narrow bridge, a passenger bus and a private automobile collided, and two
persons, A and B, were injured. A was a passenger of the bus while B was a pedestrian. The bus company was
made a defendant although a chauffeur was driving the bus and the owner-driver of the private car was also made
a defendant. What can be the source of obligation of the bus company as regards to A, the passenger?
a. Contract of carriage for failure to exercise extra-ordinary diligence
b. Culpa aquiliana or quasi-delict if he exercised diligence of a good father of a family in selecting his
employees.
c. Culpa criminal or crime and considered a principal liability
d. Quasi-contract
44. Using the same data in preceding number, what can be the source of obligation of the driver of passenger bus as
regards to A, the passenger?
a. Contract of carriage
b. Quasi-contract
c. Law
d. Quasi-delict or crime at the option of A
45. Using the same data in preceding number, what can be the source of obligation of the bus company as regards to
B. the pedestrian?
b. Culpa aquiliana if he fails to exercise the diligence of a good father of a family in selecting his employees
c. Culpa criminal or crime and considered a principal liability
d. Quasi-contract
46. Using the same data preceding number, what can be the source of obligation of the bus driver as regards to B, the
pedestrian?
b. Quasi-contract
c. Law
d. Quasi-delict or crime at the option of B
47. Using the same data preceding number, what can be the source of obligation of the owner-driver of private car as
regards to A, the passenger?
b. Quasi-contract
c. Law
d. Quasi-delict or crime at the option of A
48. Using the same data preceding number, what can be the source of obligation of the owner-driver of private car as
regards to B, the pedestrian?
b. Quasi-contract
c. Law
d. Quasi-delict or crime at the option of B
49. Which of the following statements concerning the obligation to deliver a thing is correct?
I. A generic or indeterminate thing is only indicated by its kind, without being designated and distinguished from
others of the same kind.
II. A determinate or specific thing or delimited generic thing is one that is individualized and can be identified or
distinguished from others of its kind.
a. Neither I nor II
b. Both I and II
c. I only
d. II only
50. Which of the following refers to a determinate thing?

a. White horse
b. Pilot
c. Car with engine number 143-245
d. House and lot in Villa Lourdes Subdivision
51. The following are the incidental or accessory obligations in an obligation to deliver a determinate thing, except
a. Obligation to preserve the thing with due care.
b. Obligation to deliver the fruits if the fruits occur after the obligation to deliver the determinate thing
arises.
c. Obligation to deliver the accessions and accessories.
d. Obligation to pay for the freight and insurance in transit.
52. In an obligation to deliver a determinate thing, what degree of diligence shall be exercised by the obligor or
debtor in the preservation of the determinate thing?
a. Extraordinary diligence unless the law or the stipulation of the parties requires another standard of care.
b. Diligence of a father of a good family unless the law or the stipulation of the parties requires another
standard of care.
c. Diligence of a good father of a family or ordinary diligence or diligence of a reasonably prudent person
unless the law or the stipulation of the parties requires another standard of care.
d. No diligence unless the law or the stipulation of the parties requires another standard of care.
53. In an obligation to deliver a determinate thing, when is the creditor or obligee entitled to the fruits of the
determinate thing or when does the creditor obtain personal rights over the fruits of the determinate thing?
a. From the time of the perfection of the contract.
b. From the time the obligation to deliver the determinate thing arises.
c. From the time it is delivered physically or constructively.
d. From the fulfillment of resolutory condition.
54. In an obligation to deliver a determinate thing, when does the creditor or obligee obtain real rights over the fruits
the determinate thing?
a. From the time of the perfection of the contract.
b. From the time the obligation to deliver it arises.
c. From the time the fruits are delivered physically or constructively.
55. In a contract of sale, when is the buyer or vendee entitled to the fruits of the determinate thing or when does the
buyer or vendee obtain personal rights over the fruits of the determinate thing?
a. Front the time of the perfection of the contract of sale of determinate thing.
b. From the time the obligation to deliver arises. c. From the time the determinate thing is delivered.
c. From the fulfillment of resolutory condition.
56. Which of the following statements concerning real right and personal right is correct?
I. A real right is the power belonging to a person over a specific thing, without a passive subject individually
determined, against whom such right may be personally exercised. It can be exercised against any person.
II. A personal right is the power belonging to one person to demand of another, as a definite passive subject, the
fulfillment of a prestation to give, to do or not to do. It can cc exercised against a particular person.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
57. As a general rule, when a debtor or obligor fails to comply with his obligation, the creditor or obligee may avail
himself of what remedies?
a. Action for specific performance or action to rescind or resolve the obligation.
b. Action for specific performance with damages only
c. Action to rescind or resolve the obligation with damages only.
d. Action for specific performance or action to rescind the obligation or action for damages, exclusively or
in addition to either of the first two actions.
58. What is the proper remedy of the creditor in the case the debtor or obligor fails to comply with his obligation to
deliver a determinate or specific thing?
a. Action for specific performance addition to damages under Article 1170.
b. He may ask the obligation to be complied with al the expense of the debtor with damages.
c. Action for rescission of the obligation.
d. Action for annulment of the contract.
59. What is the remedy of the creditor in the case the debtor or obligor fails to comply with his obligation to deliver
an indeterminate or generic thing?
a. Action for rescission of the obligation.
b. He may tile an action for specific performance with damages only.
c. He may ask the obligation to be complied with at the expense of the debtor with damages only.
d. Either B or C.
60. Is the debtor or obligor liable for damages by reason of the loss of the determinate thing due to fortuitous event?
a. No, as a general rule, except in those cases provided by law.
b. Yes, as a general rule, unless he is exempted by creditor or obligee.
c. Yes in all cases.
d. No in all cases.
61. In an obligation to deliver a determinate thing, when is the debtor or obligor liable even if the loss of the
determinate thing is due to fortuitous event?
I. When the debtor or obligor delays in the delivery of the thing.
II. When the debtor or obligor promised the same thing to two or more persons.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
62. In an obligation to give a determinate thing, which of the following statements is true?
a. The obligation to give a determinate thing includes that of delivering all of its accessions and accessories
only if there is stipulation to that effect.
b. The obligation to give a determinate thing includes that of delivering all of its accessions and accessories
even though they may not have been mentioned.
c. The obligation to give a determinate thing includes that of delivering all of its accessions and accessories
even if there stipulation to the contrary.
d. The obligation to give a determinate thing does not include that of delivering all of its accessions and
accessories.
63. Which of the following statements is correct?

I. Accessories refer to those which destined for the embellishment, use or their preservation of another thing or
more importance, have for their object the completion of the latter for which they are indispensable or convenient.
II. Accessions include everything which is produced by a thing, or which is incorporated or attached thereto,
either naturally or artificially.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
64. The following are the kinds of fruits under the Civil Code, except
a. Natural fruits —are the spontaneous products of the soil, and the young and other products of animals.
b. Industrial fruits — are those produced by lands of any kind through cultivation or labor.
c. Civil fruits — Fruits as a result of civilization or fruit arising out of a juridical relation or contracts such
as are the rents of buildings, the price of leases of lands and other property and the amount of perpetual or
life annuities or other similar incomes.
d. Commercial fruits — Fruits arising from commercial transaction.
65. As a general rule, in an obligation to do, what is the remedy of the creditor if the debtor fails to do the prestation?
a. Action for specific performance with damages.
b. Action for annulment of obligation with damages.
c. The creditor or third person may do it in a proper manner at the expense of the debtor.
d. Action for damages only to be awarded by the Court.
66. In an obligation to do whereby only the debtor can do the thing, what is the remedy of the creditor if the debtor
fails to do the prestation?
c. The creditor or third person may do it in a proper manner at the expense of the debtor.
d. Action for indemnification for damages.
67. In case a public official who has the ministerial duty to perform a particular obligation or public duty under the
law fails to do such obligation, what is the remedy of the offended party?
a. Civil action for specific performance
b. Special civil action for mandamus
c. Special civil action for certiorari
d. Special civil action of prohibition
68. In an obligation to do, what is the remedy of the creditor in case the debtor did it in contravention of the tenor of
the obligation or did it poorly?
c. The creditor or third person may do it in a proper manner or it may be decreed that what had been poorly
done be undone at the expense of the debtor.
d. Action for damages only to be awarded by the Court.
69. In an obligation consisting in not doing, what is the remedy of the creditor in case the debtor does what has been
forbidden him?
a. It shall be undone at the expense of debtor with no damages.
b. It shall be undone at the expense of debtor with indemnification for damages.
c. Action for specific performance with damages.
d. Action for rescission.
70. When does the debtor or obligor incur delay in an obligation to do something?
a. From the time the obligee demands judicially or extrajudicially the fulfillment of obligation.
b. From the time the obligee demands judicially the fulfillment of obligation.
c. From the time of the perfection of the contract.
71. Delay can exist in the following obligations, except

a. Obligation to do
b. Obligation to give
c. Obligation not to do
d. None of the above
72. Demand by the creditor shall not be necessary in order that delay may exist for the following, except
a. When the obligation Ate law expressly so declares that demand is not necessary for to exist.
b. When from the nature and the circumstances of the obligation it appears that the designation of the time
when the thing is to be delivered or the service is to be rendered was a controlling motive for the
establishment of the contract.
c. When there is unilateral obligation.
d. When demand would be useless, as when the obligor has rendered it beyond his power to perform.
73. In a reciprocal obligation, when does the other party incur delay?
a. From the moment one of the parties makes a demand.
b. From the moment one of the parties fulfills his obligation.
c. When both parties do not comply with what is incumbent upon them
d. When both parties are not ready to comply in proper manner their obligations.
74. Delay or Default (Mora) on the part of the debtor or obligor is called
a. Mora solvendi
b. Mora accipiendi
c. Compensatio rnorae
d. Mora obligor
75. The following are the requisites in order that the debtor or obligor may be in default, except
a. There must be a complaint filed in court against the debtor.
b. The obligation must be demandable and already liquidated.
c. The debtor delays performance of the obligation
d. The creditor demands the performance judicially and extrajudicially.
76. Which of the following is the effect of delay on the part of the debtor?
I. The debtor becomes liable for damages for the delay
II. When it has for its object a determinate thing, the delay places the rick of the thing on the debtor.
a. I only
b. I only
c. Both I and
d. Neither I nor II
77. The following are the effects of the delay on the part of the creditor, except
a. The creditor becomes liable for damages.
b. The debtor may relieve himself of the obligation by the consignation of the thing.
c. The debtor bears the risk of the loss of the thing.
d. The responsibility of the debtor for the thing is reduced and limited to fraud and gross negligence.
e. All expenses for the preservation of the thing after the mora shall be chargeable to the creditor.
78. The benefits arising from default or delay may cease upon
a. Delay of the other party.
b. Rescission of the contract.
c. Payment of damages.
d. Renunciation of other party or prescription.
79. Article 1170 of the Civil Code provides that "The debtor or obligor shall be liable for damages if in the fulfillment
of obligation, he is guilty of the following, except
a. Good faith
b. Fraud or dolo
c. Negligence or fault or culpa
d. Delay or default or mora
e. Contravention of the tenor of obligation
80. Which of the following statements pertains to "fraud"?

a. It is the failure to observe for the protection of the interests of another person, that degree of care,
precaution and vigilance which the circumstances justly demand, whereby such person suffers injury.
b. It refers to the non-fulfillment of the obligation with respect to time.
c. It refers to the deliberate and intentional evasion of the normal fulfillment of obligations.
d. It refers to illicit act which impairs the strict and faithful fulfillment of the obligation or every kind of
defective performance.
81. The debtor is not liable for damages in cases of contravention of tenor or delay when
a. It is malicious or intentional.
b. There is gross negligence.
c. It is due to fortuitous events.
d. It is due to force majeure and there is stipulation making the debtor liable even in such case.
82. The following are the types of damages that may be awarded to the aggrieved party by the court, except
a. Moral are damages awarded by reason of physical suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury.
b. Exemplary or corrective damages are damages which are imposed, by way of example or correction for
the public good, in addition to the moral, temperate, liquidated or compensatory damages.
c. Nominal are damages adjudicated in order that a right of the plaintiff, which has been violated or invaded
by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff
for any loss suffered by him.
d. Temperate or moderate damages are damages which are more than nominal but less than compensatory
damages, may be recovered when the court finds that some pecuniary loss has been suffered but its
amount can not, from the nature of the case, be provided with certainty.
e. Actual or compensatory damages are damages awarded for pecuniary loss suffered and duly proved by
the plaintiff
f. Liquidated damages or penalty are damages agreed upon by the parties to a contract, to be paid in case of
breach thereof and may not be assessed by the court.
g. Superficial — are those damages that are iniquitous, excessive, exorbitant and contra bonus mores.
83. As a general rule, what is the legal interest rate for ordinary obligation to pay a sum of money or forbearance of
money?
a. Always 12%
b. Always 6%
c. Always 10%
d. 12% before July 1, 2013 but 6% on or after July 1, 2013
84. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for what type of fraud
is void?
a. Future fraud
b. Past fraud or fraud already committed
c. Both future and past fraud
d. Neither future nor past fraud
85. Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but
such liability may be regulated by the courts, according to the circumstances. What type of culpa is referred to by
this provision of the Civil Code?
a. Culpa criminal
b. Culpa contractual
c. Culpa aquiliana
d. Culpa capa
86. In what type of culpa or negligence will the defense of the exercise of good father of the family in the selection of
his employees by the employer be a tenable defense?
a. Culpa criminal
b. Culpa contractual
c. Culpa aquiliana
d. Culpa capa
87. A stipulation exempting future liability for damages shall be valid for which of the following?
a. Gross negligence
b. Bad faith
c. Fraud
d. Simple negligence
88. It refers to the omission of that diligence which is required by the nature of the obligation and corresponds with
the circumstances of the persons, of the time and the place.
a. Fraud or dolo
b. Delay or default or Mora
c. Negligence or fault or culpa
d. Contravention of the tenor
89. If the law or contract does not state the diligence to be observed in the performance of the obligation, what degree
of diligence shall be observed?
a. Extraordinary diligence
b. Diligence of a father of a good family
c. Diligence of a good father of a family or ordinary diligence or diligence of a reasonably prudent person
d. Diligence of a good mother of a family
90. As a general rule, no person shall be responsible for those events which could not be foreseen, though foreseen,
were inevitable or also known as fortuitous events or force majeure. The following are the instances when a party
is liable for the loss even it is due to fortuitous event, except
a. In cases expressly specified by law such as when the debtor incurs delay.
b. When there is stipulation that the obligor or debtor is still liable even in cases of fortuitous events.
c. When the nature of the obligation requires the assumption of risks.
d. When the fortuitous event ix the proximate cause of the damage or injury.
91. The following are the requisites of fortuitous events to exempt the obligor or debtor from liability, except
a. The cause of the unforeseen and unexpected occurrence or the failure of the debtor to comply with his
obligation must be independent of the detor’s will.
b. It must be impossible to foresee the event which constitutes the case fortuitous or if it can be foreseen, it
must be impossible to avoid.
c. The occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal
manlier.
d. The obligor must participate in the aggravation of the injury resulting to the creditor.
92. Which of the following presumptions are correct?

I.The receipt of the principal by the creditor, without reservation with respect to the interest, shall give rise to
rebuttable presumption that wrier interest has been paid.
II. The receipt of a later installment of a debt without reservation as to prior installments, shall raise the rebuttable
presumption that such prior installments have been paid.
III. The receipts of the interest shall give rise to rebuttatle presumption that the principal has been paid.
a. I and II
b. III only
c. II and Ill
d. I and III
93. In order to satisfy his claims against the debtor, the unpaid creditor has the following successive rights, except
a. To levy by attachment and execution upon all the property of the debtor, except such as exempt by law
from execution.
b. To exercise all rights and actions of the debtor, except such as are inherently personal to him.
c. To ask for the rescission of the contracts made by the debtor in fraud of his rights.
d. To file an action for damages against a third person who acquires the property in bad faith the property
subject of the litigation.
e. To file a criminal complaint against the debtor.
94. This action may be exercised by the creditor in the place of his negligent debtor in order to preserve or recover for
the patrimony of the debtor the product of such actions, and then obtain therefrom the satisfaction of his own
credit. It refers to the right of unpaid creditor to exercise the right of his debtor.
a. Accion reindivicatoria
b. Accion subrogatoria
c. Accion pauliana
d. Accion publiciana
95. This action refers to the last recourse of the creditor to satisfy his claim. It refers to the creditor's right to set side
or revoke or rescind the acts or contracts which the debtor may have done to defraud him.
a. Accion pauliana
b. Accion reindivicatoria
c. Accion publiciana
d. Accion subrogatoria
96. Which of the following statements concerning rights acquired in virtue of an obligation is correct?
a. As a general rule, they are not transmissible.
b. They are transmissible only if there is stipulation to that effect.
c. Subject to the provisions of laws, they are transmissible unless there is stipulation to the contrary.
d. They are always transmissible.
97. It refers to an obligation which contains no term or condition whatever upon which depends the fulfillment of the
obligation contracted by the debtor.
a. Conditional obligation
b. Pure obligation
c. Natural obligation
d. Civil obligation
98. The following obligations are demandable at once, except

a. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past
event unknown to the parties.
b. Pure obligation
c. Every obligation which contains a resolutory condition without prejudice to the effects of the happening
of the event or obligation with a resolutory period (in diem)
d. Suspensive conditional obligation or obligation with a suspensive period (ex die).
99. It is an obligation which is subject to a condition.

a. Conditional obligation
b. Pure obligation
c. Natural obligation
d. Civil obligation
100. It refers to every future and uncertain event upon which an obligation or provision is made to depend. It
may also pertain to a past event which is unknown to the parties.
a. Period
b. Condition
c. Provision
d. Term
101. The following are considered conditions, except

a. If Golden State Warriors will become 2050-2051 NBA Champion.
b. If Ted Fay will pass the bar exam.
c. Upon the death of Clay Kerry.
d. If John Reyes will graduate in law school.
102. When the debtor binds himself to pay when his "means permit him to do so" or "as soon as possible" or
"as soon as he has the money", the obligation shall be deemed to be
a. Obligation with a suspensive condition
b. Pure obligation
c. Obligation in diem or with a resolutory period
d. Obligation ex die or with a suspensive period which period may be fixed by court
103. The following are the distinctions between suspensive and resolutory conditions, except
a. If the suspensive condition happens, the obligation arises while if the resolutory condition happens, the
rights and obligations already existing are extinguished.
b. In suspensive condition, the rights and obligations do not exist before the happening of the condition
while in resolutory condition, the rights and obligations already exist even before the happening of the
condition.
c. Obligation subject to a suspensive condition is not demandable at once while obligation subject to
resolutory condition is demandable at once.
d. Suspensive condition is known as condition subsequent while resolutory condition is condition precedent.
104. The following are obligations subject to suspensive conditions, except

a. I will give you P1,000 if you pass the CPA board exam.
b. You can use the car until Regina graduates.
c. He will dance if he wins in lotto.
d. She will work if KFC becomes number 1.
105. Which of the following statements pertains to a protestativecondition?

a. It is one which depends upon the sole will of one of the contracting parties.
b. It is one which depends exclusively upon chance or other factors, and not upon will of the contracting
parties.
c. It is one which depends upon the will of the contracting parties and other circumstances, including the
will of a third person.
d. It is one which depends upon the arrival of a particular period.
106. Which of the following conditional obligations is void?

a. When the fulfillment of the suspensive condition depends upon the sole will of the debtor.
b. When the fulfillment of the suspensive condition depends upon the sole will of the creditor.
c. When the fulfillment of the suspensive condition depends upon the sole will of the third person.
d. When the fulfillment of the suspensive condition depends upon chance or other factors.
107. The following conditions shall annul the obligation which depends upon them, except
a. Impossible conditions
b. Suspensive conditions which depend upon chance and will of the debtor
c. Conditions contrary to good customs or public policy
d. Conditions prohibited by law
108. What is the effect of the condition not to do an impossible thing?

a. It shall be considered as having agreed upon.
b. The obligation will become null and void.
c. The obligation is subject to a condition.
d. The obligation is pure and demandable.
109. Which of the following obligations is valid?

a. Obligation to give P1M subject to a suspensive condition that if the creditor will have sexual intercourse
with the debtor.
b. Obligation to give P1M in exchange for shabu and cocaine.
c. Obligation to give P1M subject to a suspensive condition that if the debtor will not be able to walk in air.
d. Obligation to give P1M subject to a suspensive condition if the debtor will go to Singapore.
110. Which of the following statements are correct?

I. 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.
II. The condition that sonic 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.
a. Both I and II
b. Neither I nor II
c. I only
d. II only
111. An obligation to pay a sum of money is subject to the condition that certain person shall arrive at a
designated place in one year. This obligation will be extinguished if
I. One year passed and he does not arrive at the place
II. Such person dies before the lapse of one year and before arriving at such a place.
a. I only
b. II only
c. Either I or II
d. Neither I nor II
112. An obligation to deliver a piece of land to X is subject to the condition that he shall not bear a child
within two years.
I. Two years expire without X having bearing a child.
II. X becomes barren before the two years expire.
a. I only
b. II only
c. Neither I nor II
d. Either I or II
113. What is the effect if the obligor or debtor voluntarily prevented the fulfillment of the condition of an
obligation?
a. The obligation is extinguished.
b. The obligation remains to be subject to the condition.
c. The condition shall be deemed fulfilled and the obligation becomes demandable.
d. The obligation becomes with a period.
114. When shall the effects of a conditional obligation to give take effect?
a. Shall be given prospective effect once the condition has been fulfilled.
b. Shall retroact to the day of the constitution or perfection of the obligation once the condition has been
c. Shall not be given retroactive effect once the condition has been fulfilled.
d. Shall be given retroactive effect even if the condition is not fulfilled.
115. X sells a piece of land on January 1, 2020 subject to a suspensive condition to A. Then, on October 4,
2020, X sells the land unconditionally to B. The suspensive condition happens on December 25, 2020. Who shall
have the better right assuming there is neither registration of the sale nor delivery of possession to either A or B?
a. B because the sale to him is unconditional.
b. B because his title is older being dated October 4, 2020.
c. A because his title retroacts on January 1, 2020 upon fulfillment of the suspensive condition on December
25,2020.
d. A because he is the first buyer.
116. In conditional reciprocal obligations to give, what is the treatment of the fruits and interests during the
pendency of the condition?
a. They shall inure to the sole benefit of the creditor.
b. They shall inure to the sole benefit of the debtor.
c. They shall be deemed to have been mutually compensated.
d. They shall be forfeited in favor of the government.
117. In conditional unilateral obligation to give or unilateral obligation to give subject to a period, what is the
treatment of the fruits-and interests during the pendency of the condition or during the pendency of the period?
a. They shall inure to the sole benefit of the creditor in the absence of stipulation to the contrary.
b. They shall inure to the sole benefit of the debtor, whether suspensive or resolutory period or condition, in
the absence of stipulation to the contrary.
c. They shall be divided equally between the creditor and debtor.
d. They shall be forfeited in favor of the government.
118. In conditional obligation to do or not to do, what is the effect of the fulfillment of the condition?
a. There shall be retroactive effect to the day of the constitution of the obligation.
b. There shall be prospective effect from the moment the condition is fulfilled.
c. The stipulation of the parties shall not be considered.
d. The courts shall determine, in each case, the retroactive effect of the condition that has been complied
with taking into account the agreement of the parties.
119. Before the fulfillment or pendency of the suspensive condition, what shall the creditor may do?
a. Demand the specific performance of the obligation.
b. Charge damages and interests.
c. Demand the fruits and interests of the thing.
d. Bring appropriate actions for the preservation of his right.
120. During the pendency of the suspensive condition, the debtor has paid by mistake a sum of money. What is
the remedy of the debtor before the fulfillment of condition?
a. The debtor can recover the sum of money with interests even if the creditor acted in good faith.
b. The debtor can recover the sum of money with interests only if the creditor acted in bad faith.
c. The debtor can only recover the sum of money without interests even if the creditor acted in bad faith.
d. The debtor can only recover the sum of money without interests if the creditor acted in good faith.
121. During the pendency of the period in an obligation with a period, the debtor has paid by mistake a sum of
money. What is the remedy of the debtor before the arrival of the period?
a. The debtor can recover the sum of money with interests whether the creditor acted in good faith or bad
faith.
b. The debtor can recover the sum of money with interests only if the creditor acted in bad faith.
c. The debtor can only recover the sum of money without interests even if the creditor acted in bad faith.
d. The debtor can only recover the sum of money without interests if the creditor acted in good faith.
122. During the pendency of the suspensive condition, the debtor has delivered a determinate or specific thing
by mistake. What is the remedy of the debtor?
a. Accion of imdemnification if the thing is still with the creditor.
b. Accion reinvidicatoria if the thing is still with the creditor.
c. Accion publiciana if the thing is still with the creditor.
d. Accion possessoria if the thing is still with the creditor.
123. The following are the rules to be observed in case of improvement, loss or deterioration of the
determinate thing during the pendency of the suspensive condition in an obligation to give a determinate thing or
pendency of the suspensive period in an obligation to give a determinate thing, except
a. If the thing is lost without the fault of the debtor, the obligation shall be extinguished.
b. If the thing is lost without the fault of the debtor, he shall be obliged to pay damages.
c. When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor.
d. If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the
creditor.
e. If it is improved at the expense of the debtor, he shall have no other right than that granted to the
usufructuary which means that he shall only have the right to use the improved thing for a reasonable
period.
f. Deterioration of the thing, regardless the reason, shall be borne by the creditor.
124. When the thing deteriorates through the fault of the debtor during the pendency of the condition in an
obligation to give, what are the alternative remedies of the creditor? A
a. He may only ask for the rescission of the obligation with indemnity for damages.
b. He may only ask for the performance of the obligation with indemnity for damages.
c. The debtor may choose between rescission of the obligation or its fulfillment with indemnity for damages
in either case.
d. The creditor may choose between rescission of the obligation with damages or exact fulfillment with
damages.
125. The thing is considered lost in any of the afolowing instances, except
a. When it perishes.
b. When it goes out of commerce.
c. When it disappears in such a way that its existence is unknown or it cannot be recovered.
d. When it is a destroyed generic thing
126. When the obligation is subject to resolutory condition or when the condition has for its purpose the
extinguishment of the obligation to give, what shall be the obligation of the parties upon the fulfillment of said
condition?
a. They shall retain what they have received.
b. They shall file an action for damages.
c. They shall return to each other what they have received.
d. They shall rescind the obligation.
127. When the obligation obligation is subject to resolutory condition or subject to a resolutory period or when
the condition or period has for its purpose the extinguishment of the obligation to give, what shall be the rule as
regards to the fruits and interest of the thing to be returned?
a. The fruits shall be returned by the person who will make the restitution without deducting the expenses
for the production, gathering and preservation of the fruits
b. The fruits shall be retained by the person who received the thing.
c. The fruits shall be returned by the person who will make the restitution with deduction for the expenses
for the production, gathering and preservation of the fruits.
d. The fruits shall be retained by the person who received the thing and shall be reimbursed for the expenses
for the production, gathering and preservation of the fruits.
128. It refers to a type of obligation which arises from the same cause and in which each party is a debtor and
creditor of the other, such than the obligation of one is dependent upon the obligation of the other.
a. Bilaterial obligations
b. Reciprocal obligations
c. Unilateral obligations
d. Multilateral obligations
129. In case of reciprocal obligations, may the injured party ask for judicial rescission of the obligations in
case one of the obligors or debtors should not comply with what is incumbent upon him?
a. Yes if there is stipulation of the power to rescind.
b. No even if there is stipulation of the power to rescind.
c. Yes because the power to rescind obligations is implied in reciprocal ones.
d. No because the power to rescind obligations cannot be implied in reciprocal ones.
130. When one of the obligors committed breach of obligation in a reciprocal obligation, what shall be the
alternative remedies of the injured party?
a. The injured party may choose between the fulfillment of the obligation with damages or the rescission of
the obligation with damages.
b. The injured party may choose between the fulfillment of the obligation without damages or the rescission
of the obligation without damages.
c. The injured party may only rescind the obligation with damages.
d. The injured party may only ask for the fulfillment of obligation with damages.
131. When the injured party in a reciprocal obligation elected the fulfillment of the obligation with damages,
may he still ask for the rescission of the obligation?
a. No under any circumstances because these remedies are alternative.
b. Yes because there remedies are successive remedies available to the injured party.
c. No as a general rule because these remedies are alternative except where performance has become
impossible or there are insuperable and legal obstacle thereto.
d. Yes because the injured party can have them both.
132. When the injured party in a reciprocal obligation elected the rescission of the obligation with damages,
may he still ask for the fulfillment of the obligation?
a. Yes because there remedies are successive remedies available to the injured party.
b. No but there are certain exceptions to the rule.
c. No because these are alternative rem.ies and the injured party cannot have both.
d. Yes because the injured party is protected by law.
133. Which of the following statements concerning reciprocal obligations is correct?

I. The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.
II. In case both parties have committed a breach of the obligation, the liability of the first infractor shall be
equitably tempered by the courts.
III. 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.
a. I, II and III
b. I and II
c. II and III
d. I and III
134. It is an obligation which is subject to a space of time which, exerting an influence on obligations as a
consequence of a juridical act, suspends their demandability or determined their extinguishment.
a. Conditional
b. Obligation with a period
c. Pure obligation
d. Demandable obligation
135. The following statements concerning obligation with a period is correct, except
a. Obligations for whose fulfillment a day certain has been fixed, shall be demandable when that day comes.
b. Obligation with a resolutory period takes effect at on but terminates upon arrival of the day certain.
c. A day certain is understood to be that which must necessarily come, although it may not be known when.
d. If the uncertainty consists in whether the day will come or not, the obligation is with a period.
136. The following are the distinctions between a condition and a period, except
a. A condition is an uncertain event while a period is event that must necessarily come.
b. While a condition gives rise to an obligation or extinguishes one already existing, a period has no effect
upon the existence of obligation, but only its demandability or performance and thus, a period does not
carry with it any retroactive effect.
c. A condition may refer to a past event and unknown to parties while a period always refers to the future.
d. A condition which depends exclusively on the will of the debtors does not annul the obligation but merely
authorizes the court to fix the period but a period left to the debtor's will shall annul the obligation.
137. The following are the requisites of a period, except

a. It must be past. B
b. It must be future.
c. It must be certain
d. It must be possible.
138. Suspensive period and resolutory period are also known as

a. Both ex die
b. Both in diem
c. Ex die and in diem, respectively
d. In diem and ex die, respectively
139. Whenever in an obligation a period is designated to whose benefit the period is presumed to have been
established?
a. Creditor only
b. Debtor only
c. Both creditor and debtor
d. Neither creditor and debtor
140. If there is no stipulatin as to whose benefit the period is established, which of the following statements is
incorrect?
a. The creditor cannot demand payment before the period stipulated.
b. The debtor cannot make an effective tender and consignation of payment before the period stipulated.
c. The term is for the benefit of both the debtor and creditor
d. The term is for the benefit of the debtor
141. In case there is stipulation as to whose benefit the period is established, which of the following statements
is incorrect?
a. If it is for the benefit of the creditor only, he may demand performance at any time.
b. If it is for the benefit of the debtor only, he may oppose a premature demand for payment.
c. If it is for the benefit of the creditor only, the debtor cannot compel him to accept payment before the
period expires.
d. If it is for the benefit of the debtor only, he cannot pay validly at any time before the period expires.
142. As a general rule, the court is not allowed to fix the period of an obligation. The following are the
exceptional instances wherein the court may fix the period of obligation with a period, except
a. If the obligation does not fix a period, but from its nature and circumstances it can be inferred that a
period was intended.
b. If the period depends upon the sole will of the debtor.
c. In case of pure obligation, to prevent unreasonable interpretations of its immediate demandability.
d. If the obligation is pure, simple, unconditional and payable on demand.
143. The following are the instances wherein the debtor stall lose every right to make use of the period and
therefore the obligation with a period becomes due and demandable, except
a. When after the obligation hot been contracted, he becomes insolvent and he does not give 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 or destroyed said guaranties or securities after their establishment,
unless he immediately gives new one equally satisfactory.
d. When through a fortuitous event the guaranties of securities after their establishment were destroyed.
e. When the debtor violates any undertaking in consideration of which the creditor agreed to the period.
f. When the debtor attempts to abscond. G
g. When the creditor granted grace period or extension of payment to debtor.
144. It is an obligation where the debtor is alternatively bound by different prestations and it is extinguished by
the performance of any of them.
a. Alternative obligations
b. Conjunctive obligations
c. Facultative obligations
d. Composite obligations
145. The following statements pertain to alternative obligations. Which is correct?

I. A person alternatively bound by different prestations shall completely perform one of them.
II. The creditor cannot be compelled to receive part of one and part of the other undertaking.
a. I only
b. II only
c. Neither I nor II
d. Both I and II
146. Who has the right of choice in case of alternative obligations?

a. Creditor, unless it has been expressly granted to the debtor.
b. Debtor unless it has been expressly granted to the creditor.
c. Always with the debtor.
d. Always with the creditor.
147. The following are the limitations on the right of choice in alternative obligations, except
a. The debtor cannot choose unlawful undertakings.
b. The debtor cannot choose part of one prestation and pan of another.
c. The debtor cannot choose impossible undertakings or those which could not have been the object of the
obligation.
d. The right to choose is divisible.
148. In alternative obligations, when shall the choice of prestation producc effect?
a. From the moment it is exercised by the debtor.
b. From the moment it is communicated to the creditor.
c. From the moment the creditor consented to the choice.
d. From the constitution of the obligation.
149. In alternative obligations, what is the effect of notice of choice of prestation to the creditor?
a. The obligations remain to be alternative.
b. The selection or choice is still revocable.
c. The obligation is converted into a simple obligation.
d. The obligation becomes a facultative obligation.
150. In alternative obligations, when shall the debtor lose the right of choice and thus, the obligation becomes
simple?
a. When he becomes insolvent.
b. When he attempts to abscond.
c. When among the prestations whereby he is alternatively bound, only one is practicable.
d. When he was prevented by the creditor.
151. What is the remedy of the debtor if through the creditor’s act the debtor cannot make a choice according
to the terms of alternative obligations
a. The debtor may file an action for indemnification.
b. The debtor may rescind the contract with damages.
c. The debtor may ask for fulfillment of obligation with damages
d. The debtor may compel the creditor to perform the prestations.
152. In case the debtor has the right of choice in alternative obligations and through the fault of the debtor one
of the things which is alternatively the object of the obligation h. been lost, what shall be the right of creditor?
a. He may demand the performance of the remaining prestation with damages.
b. He may demand the performance of the remaining prestation without damages.
c. He has the right to indemnity for damages.
d. He has the right to demand the value of the thing lost plus damages.
153. In case the debtor has the right of choice in alternative obligations and through the fault of the debtor all
the things which are alternatively the object of the obligation have been lost or the compliance of the obligation
has become impossible. What shall be the right of creditor?
a. He shall have the right to indemnity for the value of the lost object with the largest value plus damages.
b. He shall have the right to indemnity for the value of the lost object with the smallest value plus damages.
c. He shall have the right to indemnity for the value of the last object plus damages
d. He shall have the right to indemnity for the value of the any object plus damages.
154. In case the debtor has the right of choice in alternative obligations and through the fault of the debtor only
one object remains of the things which are the objects of alternative obligation and before its performance, it has
been lost due to fortuitous eve, what shall be the right of the creditor?
a. He may demand the value, of any object lost due to debtor's fault.
b. He may demand indemnification for damages.
c. He may demand the value of the last object lost due to fortuitous event.
d. He has no right to demand anything.
155. In case the debtor has the right of choice in alternative obligations and through fortuitous event only one
object remains of the things which are the objects of alternative obligation and before its performance, it has been
lost due to the fault of the debtor, what shall be the right of the creditor?
a. He shall have the right to indemnity for the value of the lost object with the largest value plus damages.
b. He shall have the right to indemnity for the value of the lost object with the smallest value plus damages.
c. He shall have the right to indemnity for the value of the lost object plus damages.
d. He shall have the right to indemnity for the value of the any object plus damages.
156. In case the debtor has the right of choice in alternative obligations and through fortuitous event all the
objects of alternative obligation have been lost, what shall be the right of the creditor?
a. He shall have no right.
b. He shall have the right to indemnity for the value of the lost object with the largest value plus damages.
c. He shall have the right to indemnity for the value of the lost object with the smallest value plus damages.
d. He shall have the right to indemnity for the value of the last object plus damages.
157. When the choice has been expressly given to the creditor, the obligation shall cease to be alternative from
the day when the selection has been communicated to the debtor. Until then, the responsibility of the debtor when
the right of choice has been granted to the creditor shall be governed by the following rules, except
a. If one of the things is lost through a fortuitous event, he shall perform the obligation by delivering that
which the creditor should choose from among the remainder, or that which remains if only one subsists.
b. If the loss of one of the things occurs through the fault of the debtor, the creditor may claim any of those
subsisting, or the price of that which, through the fault of the former, has disappeared, with a right to
damages.
c. If all the things are lost through the fault of the debtor, the choice by the creditor shall fall upon price of
any one of them, also with indemnity for damages.
d. If all the things are lost through fortuitous event, the debtor shall be liable for damages.
158. It is an obligation wherein only one prestation has been agreed upon but the obligor may render another in
substitution.
c. Facultative obligations
159. What is the effect of the loss or deterioration if the thing intended as a substitute in a facultative
obligation before the substitution?
a. The debtor becomes liable for damages.
b. The creditor may rescind the obligation with damages
c. The debtor shall indemnify the creditor.
d. The debtor shall not be liable.
160. What is the effect of the loss of the thing intended as a substitute in a facultative obligation after the
substitution?
a. The debtor shall not be liable for the loss.
b. The obligation is extinguished.
c. The debtor shall be liable for the loss on account of his delay, negligence or fraud.
d. The creditor has no right against the debtor.
161. What is the effect of the loss of the principal object in a facultative obligation before the substitution?
a. The debtor is liable if the loss is due to fortuitous event.
b. The obligation is extinguished if it is due to fortuitous event.
c. The debtor is not liable even if the lost is due to his fault.
d. The obligation is not extinguished.
162. What is the effect of the loss of the principal object in a facultative obligation after the substitution?
a. The debtor is liable if the loss is due to fortuitous event
b. The debtor is liable for damages if the loss is due to his fault
c. The obligation is extinguished because of the lost of the object.
d. The obligation remains to exist.
163. In a facultative obligation, to whom shall the right of choice belong?

a. Always creditor
b. Always debtor
c. Debtor unless granted to the creditor
d. Creditor unless granted to the debtor
164. The following are the distinctions between alternative obligation and facultative obligation, except
a. In alternative obligation, several objects being due, the fulfillment of one is sufficient, determined by the
choice of the debtor who generally has the right of election while in facultative obligation. only one thing
is due, but the debtor has reserved the right to substitute in with another.
b. In alternative obligation, the loss of one of the things due through the fault of debtor may affect the
obligation while in facultative obligation in case the right to choose is given to creditor while the loss of
that which may be given as substitute does not affect the obligation.
c. In alternative obligation, the right of choice can never be granted to the creditor while in facultative
obligation, the right of choice may be granted to creditor.
d. In alternative obligation, the loss of one of the things due does not extinguish the obligation while in
facultative obligation, the loss of that which is due as the object of the obligation will extinguish such
obligation.
165. It is an obligation where the debtor has to perform several prestations and it is extinguished only by the
performance of all of them.
c. Facultative obligation

I. Solid, obligation is one in which each debtor is liable for the entire obligation and each creditor is entitled to
demand the whole obligation.
II. Joint obligation is one M which each of the debtors is liable only for a proportionate part of the debt and each
creditor is entitled only to a proportionate share of the credit.
a. I only b
b. II only
c. I and II
d. Neither I nor II
167. The concurrence of two or more creditors or of two or more debtors in one and the same obligations
implies that the obligation is (What is the presumption of law if the obligation is silent?)
a. Joint
b. Solidary
c. Either joint or solidary if silent
d. Neither joint or solidary
168. A, B and C have obligation amounting to P6,000,000 to D and E. How much may D collect from A if the
obligation is mixed joint?
a. P6,000,000
b. P3,000,000
c. P2,000,000
d. P1,000,000
169. Using the same data in preceding number, how much may D collect from A if the obligation is solidary?
a. P6,000,000
b. P3,000,000
c. P2,000,000
d. P1,000,000
170. Using the same data in preceding number, how much may D collect from A if the obligation is active
solidary?
a. P6,000,000
b. P3.000.000
c. P2,000.000
d. P1,000,000
171. Using the same data in preceding number, how much may D collect from A if the obligation is mixed
solidary?
a. P6,000,000
b. P3,000,000
c. P2,000,000
d. P1,000,000
172. The following are the instances when the obligation is considered solidary,cexcept
a. When the obligation expressly so states that it is solidary.
b. When the obligation is indivisible.
c. When the law requires the obligation to be solidary.
d. When the nature of the obligation requires the obligation to be solidary.
173. The following terms refer to solid, obligation, except

a. Mancomunada solidaria
b. Joint and several
c. Pro rata
d. In solidum
174. The following are the principal consequences of the joint character of the obligation, except
a. The demand by one creditor upon one debtor produces the effects of default only with respect to the
creditor who demanded and the debtor on whom the demand was made, but not with respect to the others.
b. The interruption of prescription by the. judicial demand of one creditor upon a debtor, does not benefit the
other creditors nor interrupt the prescription as to other debtors.
c. The voices of each obligation arising from he personal effect of a particular debtor or creditor do not
affect the obligation or rights of the others.
d. The insolvency of a debtor increases the responsibility of his co-debtors and it authorizes a creditor to
demand anything from his co-creditors in case of insolvency of a debtor.
175. The following statements pertaining to joint and solid, obligations are correct, except
a. If the division is impossible, the right of the creditors may be prejudiced only by their collective acts and
the debt can be enforced only by proceeding against all the debtors and if the latter should be insolvent,
the others shall not be liable for his share.
b. The indivisibility of an obligation gives rise to solidarity.
c. The solidarity of an obligation does not imply indivisibility.
d. Solidary may exist although the creditors and the debtors may not be bound in the same manner and by
the same period conditions.
176. It is a solidarity that exists among the creditors.

a. Mixed solidarity
b. Active solidarity
c. Passive solidarity
d. Simple solidarity,
177. The following statements pertaining to solid, obligation are correct, except
a. Each one of the solid, creditor may do whatever may be useful to the others, but not anything which may
be prejudice to the latter.
b. A solidary creditor can assign his rights without the consent of the others.
c. The debtor may pay any one of the solidary creditors.
d. If any demand, judicial or extrajudicial, has been made by any one of the solidary creditors, payment
should be made to him.
178. The following acts made by any of the solid, creditors with any of the solid, debtors shall extinguish the
obligation, except
a. Novation
b. Compensation
c. Extension of time for payment
d. Confusion
e. Remission
179. The following are the effects of novation, compensation, confusion or remission made by any of the
solidary creditors or with any of the solidary debtors, except
a. As between creditors and debtors, any of these acts will extinguish the obligation, so that no creditor may
thereafter sue any debtor except in case of novation, where there may be no change or only a partial
change of parties, but in this last case it is no longer the original obligation, but the new one, which would
be sued upon.
b. As among co-creditors, the act of any of them in extinguishing the obligation with respect to the debtor or
debtors, does not prejudice the rights of the other creditors to recover their respective share in the
obligation from the creditor who effected the novation, compensation, confusion or remission.
c. As among co-debtors, the co-debtor as to whom the obligation was extinguished cannoot recover from his
other co-debtors more than their respective shares in whatever he may have given up or lost as the
consideration for the extinguishment of the obligation.
d. In case of remission, the co-debtor can recover anything from the other debtors.
180. The following statements concerning the payment of solid, obligation are correct, except
a. Payment made by one of the solid, debtors extinguishes the obligation and if two or more solid, debtors
offer to pay the creditor may choose which offer to accept.
b. He who made the payment may claim from his co-debtors only the share which corresponds to each with
the interest for the payment already made.
c. If payment is made before the debt is due, no interest for the intervening period may be demanded.
d. When one of the solid, debtors cannot, because of his insolvency, reimburse his share to the debtor paying
the obligation, such shall be borne alone by the paying debtor and the other co-debtors shall not share in
the loss.
181. Which of the following statements is incorrect?

a. Payment by a solidary debtor shall not entitle him to reimbursement from his co-debtors if such payment
is made after the obligation has prescribed or become illegal
b. The remission made by the creditor of the share which affects one of the solidary debtors does not release
the latter from his responsibility towards the co-debtors, in case the debt had been totally paid by anyone
of them before the remission was effected.
c. The remission of the whole obligation, obtained by one the solidary debtors, entitles him to
reimbursement from his co-debtors.
d. If the thing has been lost or if the prestation has become impossible without the fault of the solidary
debtors, the obligation shall be extinguished.

I. If the thing has been lost or if the prestation has become impossible and there was fault on the part of any of
solidary debtors, all shall be responsible to the creditor, for the price and the payment of damages and interest,
without prejudice to their action against the guilty or negligent debtor.
II. If through a fortuitous event, the thing is lost or the performance has become impossible after one of the
solidary debtors has incurred in delay through judicial or extrajudicial demand upon him by the creditor, any of
the solid, debtors shall be responsible to the creditor for the price and the payment of damages and interests,
without prejudice to their action against the debtor guilty of delay.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
183. The following are the defenses that may be availed of by the solidary debtor in actions filed by the
creditor, except
a. Defenses which are inherent from the nature of the obligation
b. Defenses personal to defendant-debtor
c. c. Defenses personal to other debtors as regards that part of the debt for which the latter are responsible
d. Defenses personal to other debtors for the whole obligation
184. The following statements pertaining to divisible and indivisible obligations are correct, except
a. Divisibility or indivisibility of the obligation refers to the object or thing and not to the performance of
the obligation.
b. A divisible obligation is one which is susceptible of partial performance; that is, the debtor can legally
perform the obligation by parts and the creditor cannot demand a single performance of the entire
obligation.
c. A divisible obligation, whatever may be the nature of the thing which is the object thereof, refers to one
which can be validly performed in parts.
d. The thing or object may be divisible, yet the obligation may be indivisible.
185. The following statements pertaining to joint indivisible obligation are correct, except
a. To enforce a joint indivisible obligation, there is necessity of collective fulfillment and the action must be
against all the debtors.
b. In case of non-performance by any of the debtors, the obligation is converted into a liability for losses and
damages, which is divisible.
c. The debtors who may have been ready to fulfill their promises shall not contribute to the indemnity
beyond the corresponding portion of the price of the thing or of the value of the service in which the
obligation consists.
d. A joint indivisible obligation can be compelled by specific performance if anyone of the debtors does not
or cannot comply with his undertaking whet other debtors are willing.
186. What is the remedy of the creditor in case one of the debtors does not comply with his undertaking in a
joint indivisible obligation but the other debtors are willing and ready?
a. Action for specific performance
b. Ask third person to fulfill the obligation at the expense of all the debtors
c. Ask for indemnity for losses and damages
d. Ask the other co-debtors to fulfill the entire obligation
187. The following are the rules concerning the divisibility or indivisibility of an obligation, except
a. Obligations to give definite things and those which are not susceptible of partial performance shall be
deemed divisible.
b. When the obligation has for its object the execution of a certain number of days of work, the
accomplishment of work by metrical units, or analogous things which by their nature are susceptible of
partial performance, it shall be divisible.
c. Even though the object or service may be physically divisible, an obligation is indivisible if so provided
by law or intended by the parties.
d. In obligations to do, divisibility or indivisibility shall be determined by the character of the prestation in
each particular case.
188. It is an obligation which has an access, undertaking to assume greater liability in case of breach.
a. Obligation with a condition
b. Obligation with a penal clause
c. Obligation with a period
d. Obligation with a substitute
189. The following statements concerning obligations with a penal clause are correct, except
a. The debtor has the absolute right to just pay the penalty instead of fulfilling the obligation.
b. The penalty stipulated must not be contrary to law, morals, or public order to be enforceable.
c. Obligations with a penal clause must be construed strictly
d. In case of breach of obligations with a penal clause the debtor cannot have both enforcement of penalty in
case of non-compliance of obligation and specific performance of obligation.
190. The following are the rules to be observed in applying obligations with a penal clause, except
a. Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be
demanded.
b. The judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly
complied with by the debtor and even if there has been no performance, the penalty may also be reduced
by the courts if it is inquitous or unconscionable.
c. The nullity of the penal clause carries with it that of the principal obligation.
d. The nullity of the principal obligation carries with it that of the penal clause.
191. In obligation with a penal clause, the penalty shall substitute the indemnity for damages and the payment
of interest in case of non-compliance. In obligation with a penal clause, when may the creditor exceptionally
demand payment of damages and interest despite the presence of penalty?
a. If there is stipulation that damages and interests may be demanded in addition to penalty in case of breach
of obligation with a penal clause
b. When the debtor is guilty of bad faith or fraud in the breach of the obligation.
c. When the debtor fails to pay the penalty in case of breach.
d. Any of the choices.
192. The following are the modes of extinguishment obligations: (No-Co-Me-Re-Pa-Lo-Pre-Re-Ful-An)

a. No —Novation
b. Co — Compensation or Offset
c. Me — Merger or Confusion
d. Re — Remssion or Donation or Condonation or Renunciation
e. Pa -- Payment or Performance
f. Lo — Loss of the thing due
g. Pre — Prescription
h. Re — Rescission of Rescissible Contract
i. Fut— Fulfillment of Resolutory Condition or Resolutory Period
j. An — Annulment of Voidable Contract
193. It refers to the mode of extinguishment of right to file an action or obligation by the mere lapse of time
fixed by law.
a. Novation
b. Prescription
c. Compensation
d. Remission
194. What is the prescriptive period for civil action based on oral contract?
a. 6 years
b. 10 years
c. 4 years
d. 8 years
195. What is the prescriptive period for civil action based on written contract?
a. 6 years
b. 10 years
c. 4 years
d. 8 years
196. What is the prescriptive period for civil action based on quasi-delict or tort?
a. 6 years
b. 10 years
c. 4 years
d. 8 years
197. What is the prescriptive period for civil action based on quasi-contract?
a. 6 years
b. 10 years
c. 4 years
d. 8 years
198. What is the prescriptive period for civil action based on obligation created by law or judgment of court?
a. 6 years
b. 10 years
c. 4 years
d. 8 years
199. What is the prescriptive period for civil action of forcible entry and detainer or based on oral defamation?
a. 1 year
b. 10 years
c. 4 years
d. 8 years
200. What is the prescriptive period to file an action to recover movable property?
a. 6 years
b. 10 years
c. 4 years
d. 8 years
201. What is the prescriptive period to file a real action over immovables?
a. 30 years
b. 10 years
c. 4 years
d. 8 years
202. For all other actions not provided by Civil Code or Special law, what is the prescriptive period for filing
such action?
a. 6 years
b. 10 years
c. 4 years
d. 5 years
203. This is a mode of extinguishing obligation by which a person is barred from filing an action because of
failure or neglect for an unreasonable and unexplained length of time to do that which, by exercising due
diligence, could or should have been done earlier, thus, giving its to a presumption that the party entitled to assert
it either has abandoned or declined to assert it. This is all equitable doctrine but not based on substantive law.
a. Laches
b. Prescription
c. Novation
d. Confusion
e.
204. This equitable doctrine is based on the principle that a person shall be precluded from denying an
admission or representation against the person who has relied on such admission or representation.
a. Estoppel
b. Laches
c. Prescription
d. Novation
205. Which of the following types of estoppel refers to estoppel in pais?

a. It means a person is considered in estoppel if by his conduct, representations or admissions or silence
when he ought to speak out, whether intentionally or through culpable negligence, causes another to
believe certain facts to exist and such other rightfully relies and acts on such belief, as a consequence of
which he would be prejudiced if the former is permitted to deny the existence of such facts.
b. It occurs when a party: to a deed and his privies are precluded from denying any material fact stated in the
said deed as against the other party and his privies.
c. It is considered an equitable estoppel wherein a person who failed or neglected to assert a right for an
unreasonable and unexplained length of time is presumed to have abandoned or otherwise declined to
assert such right and cannot later on seek to enforce the same, to the prejudice of the other party, who has
no notice or knowledge that the former would assert such rights and whose condition has so change the
latter cannot, without injury or prejudice, be restored to his former state.
206. What will stop the running of the prescription period for filing a civil action?
a. When the action is filed before the court.
b. When there is a written extrajudicial demand by the creditors.
c. When there is any written acknowledgement of the debt by the debtor.
d. Any of the above
207. It is a mode of extinguishing obligation which refers to the fulfillment of the prestation due.
a. Novation
b. Payment
c. Compensation
d. Merger
208. 'The following are the requisites of a valid payment. except

a. The payment must be in accordance with the terms and conditions of the obligation.
b. The person paying as well as the one receiving payment should have the required capacity
c. It should to made by the creditor to the debtor.
d. It should be made at the right time and place.
209. The following statements concerning payment are correct, except
a. Payment means only delivery of money but not performance, in any other manner, of an obligation.
b. A debt shall not be understood to have been paid unless the thing or service in which the obligation
consists has been completely delivered or rendered, as the ease may be.
c. If the obligation has been substantially performed in good faith, the obligor or debtor may recover as
though there had been a strict and complete fulfillment, less damages suffered by the oblige or creditor.
d. When the obligor or creditor accepts the performance, knowing its incompleteness or irregularity, and
without expressing any protest or objection, the obligation is deemed fully complied with.
210. Is the creditor required to accept payment or performance by a third person who has no interest in the
fulfillment of the obligation?
a. Yes because it is provided by law.
b. Yes because it is for the benefit of the creditor.
c. No, unless there is stipulation to the contrary.
d. No, under any circumstances.
211. What is the right of a third person who pays for debtor without the knowledge or against the will of the
debtor?
a. The third person may demand the whole amount paid from the debtor.
b. The third person cannot recover any amount
c. The third person may compel the creditor to subrogate him in his rights such as those arising from a
mortgage, guaranty or penalty.
d. The third person may recover an., insofar as the payment has been beneficial to the debtor.
212. The following statements concerning payment made by a third person who does not intend to be
reimbursed by the debtor are correct, except
a. It is deemed to be a donation.
b. It requires the debtor's consent
c. The payment is in any case to the creditor who has accepted it.
d. The payment will subrogate the third person with creditor's rights.
213. Which of the following statement is correct?

I. In obligations to give, payment made by one who does not have the free disposal of the thing due and capacity
to alienate it shall not be valid.
II. Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing
delivered or insofar as the payment has been beneficial to him.
a. Neither I nor II
b. Both I and II
c. I only
d. II only
214. The following are the persons to whom payment shall be made, except
a. Person in whose favor the obligation has been constituted or creditor
b. Any third person
c. Successor of interest of creditor
d. Any person authorized by the creditor to receive payment
215. As a general rule, payment to a third person is not valid. The following are the exceptional instances
wherein payment made to a third person is valid, except
a. When in good faith, the debtor pays to one in possession of the credit.
b. When, without notice of the assignment of the credit, the debtor pays to the original creditor.
c. When the debtor was judicially ordered to retain the debt.
d. When the payment to a third person redounded to the benefit of the creditor.
216. Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the
creditor. As a general rule the debtor must prove that the payment to a third person redounded to the benefit of the
creditor. The following are the exceptional cues wherein the debtor need not prove that the payment to third
person redounded to the benefit of creditor for such payment to be valid, except
a. If after the payment, the third person acquires the creditor's rights.
b. If the third person is not authorized by the creditor.
c. If the creditor ratifies the payment to the third person.
d. If by the creditor's conduct, the debtor has led to believe that the third person had authority to receive
payment.
217. The following statements concerning payment are correct, except

a. Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt
shall not be valid.
b. The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be of
the same value as, or more valuable than that which is due.
c. In obligations to do or not to do, an act or forbearance cannot be substituted by another act or forbearance
against the obligee's or creditor's will.
d. When the obligation consists in the delivery of an indeterminate or generic thing, whose quality and
circumstances have not been stated, the creditor can demand a thing of superior quality and the debtor can
deliver a thing of inferior quality.
218. Who shall shoulder the extra-judicial expenses required by the payment of an obligation?
a. Debtor
b. Creditor
c. Government
219. The following statements concerning partial payment are correct, except
a. The creditor cannot be compelled partially to receive the prestations in which the obligation consists
except when there is stipulation to the contrary.
b. The debtor may be required by the creditor to make partial payments.
c. When the debt is in part liquidated and in part unliquidated, the creditor may demand the payment of the
former without waiting for the liquidation of the latter.
d. When the debt is in part liquidated and in pan unliquidated, the debtor may effect the payment a the
former without waiting for the liquidation of the latter.
220. It refers to such currency which in a given jurisdiction can be used for the payment of debts, public or
private, and which cannot be refused by the creditor.
a. Legal tender
b. Foreign currency
c. Local currency
d. International currency
221. Which of the following statements concerning the legal tender based on the rules issued by Bangko
Sentral ng Pilipinas is incorrect?
a. Manager's check is as good as cash and considered legal tender.
b. 1 centavo, 5 centavos coin, 10 centavos coin, and 25 centavos coin are limited only up to P100 as legal
tender.
c. P1 coin, P5 coin and P10 coin are limited only up to P1,000 as legal tender.
d. P20 bill, P50 bill, P100 bill, P200 bill, P500 bill and P1,000 bill have no limitation as legal tender.
222. The following are the rules concerning the payment of debts in money, except
a. The payment of debts in money shall only be made in Philippine peso.
b. The payment of debts in money shall be made in the currency stipulated.
c. In case the delivery of the currency stipulated is not possible, the payment of debts in money shall be
made in the currency which is legal tender in the Philippines.
d. The delivery of promissory notes payable to order or bills of exchange or other mercantile documents
shall produce the effect of payment only when they have been cashed or when through the fault of the
creditor they have been impaired' or when the amount has already been credited to the bank account of
creditor.
e. In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the
currency at the time of the establishment of the obligation shall be the basis of payment, unless there is an
agreement to the contrary.
223. Where shall payment of an obligation be made?

a. Wherever the thing might be at the moment the obligation was constituted or perfected.
b. Place designated in the obligation.
c. Domicile of the debtor.
d. Domicile of the creditor.
224. Where shall payment of an obligation to deliver a determinate thing be made if there is no express
stipulation as to the place of payment?
b. Place designated by third party.
c. Domicile of the debtor.
225. Where shall payment of an obligation to deliver an indeterminate thing be made if there is no express
stipulation as to the place of payment?
b. Place designated by third party.
c. Domicile of the debtor
226. The following are the special forms of payment, except

a. Dation in payment
b. Application of payments
c. Payment by cession
d. Tender of payment and consignation
227. It refers to a special form of payment whereby a property is alienated to the creditor in satisfaction of a
debt in money when the loan in money is already due at the time of change.
a. Application of payment
b. Payment by cession
c. Dation in payment
228. If the obligation to pay a sum of money is changed to obligation to deliver a determinate thing before the
maturity date of the loan, the obligation is considered to be extinguished by
a. Payment by cession
b. Novation
c. Cession
d. Compensation
229. Dation in payment as a mode extinguishing obligation shall be governed by the provisions of
a. Law on Barter
b. Law on Obligation
c. Law on Sales
d. Law on Credit Transactions
230. It refers to a special type of payment which involves the voluntary abandonment of the universality of the
property of the debtor for the benefit of his creditors, in order that such property may be applied to the payment of
c. Payment by cession or Assignment
231. The following are the distinctions between dation in payment and payment by cession, except
a. Whereas dation en pogo transfers the ownership over the thing alienated to the creditor while in payment
by cession only the possession and administration (not ownership) are transferred to the creditors, with an
authorization to convert the property into cash with which the debts shall be paid.
b. While dation in payment may totally extinguish the obligation and release the debtor, the assignment
only. extinguishes the credits to the extent of the amount realized from the properties assigned, unless
otherwise agreed upon.
c. While dation in payment involves only some specific thing. payment by cession involves all the property
of the debtor.
d. While in dation in payment, the transfer is only in favor of one creditor to satisfy a debt, in payment by
cession, there are various creditors.
e. Dation in payment is governed by Law on Obligation while Payment by Cession is governed by Law on
Sale.
232. It refers to the designation of the debt which is being paid by a debtor who has several obligations of the
same kind in favor of the creditor to whom payment is made.
c. Payment by cession
233. Who has the right to application of payments?

a. Debtor
b. Creditor
c. Both debtor and creditor
d. Neither debtor nor creditor

I. Unless the parties so stipulate, or when the application of payment is made by the party for whose benefit the
term has been constituted, application shall not be made as to debts which are not yet due.
II. If the debtor accepts from the creditor a receipt of payment in which an application of the payment is made, the
debtor cannot complain of the same, unless there is a just cause for invalidating the contract.
a. Both I and II
b. Neither I nor II
c. I only
d. II only
235. The following are limitations to the preferential right of the debtor to choose the debt to which his
payment is to be made, except
a. If the debtor owes two debts, one for P50 and another for P200, and he makes a payment of P50, he
cannot choose to apply it to the P200 debt because the creditor cannot be compelled to accept partial
payment.
b. If there is only one obligation bearing stipulated interest, the debtor cannot apply the payment to the
interest before the capital.
c. The debtor cannot apply the payment to a debt that is not yet liquidated.
d. He cannot choose a debt with a period for the benefit of the creditor, when the period has not yet arrived.
e. When there is an agreement as to the debts which are to be pod first, the debtor cannot vary the
agreement.
236. The following are the ivies for application of payments in case the debtor does not exercise his right to
application of payment, except
a. If the debt produces interest, payment shall be made on the interest first before the principal amount of the
loan.
b. When the payment cannot be applied in accordance with the preceding rules, or if application cannot be,
inferred from other circumstances, the debt which is most onerous or burdensome to the debtor, among
those due, shall be deemed to have been satisfied.
c. If the debts due are of the same nature and burden, the payment shall be applied to all of them
proportionately.
d. If at the time of payment the debtor does not exercise his right to apply it to any of his debts, the
application made by the creditor shall be followed even if the debtor does not consent to such application.

I. Tender of payment is the manifestation made by the debtor to the creditor of his desire to comply with his
obligation with the if of immediate performance.
II. Consignation is the deposit of the object of the obligation in a competent court in accordance with rules
prescribed by law.
a. I only
b. II only
c. Neither I nor II
d. Both I and II
238. What is the remedy of the debtor if the creditor to whom tender of payment has been validly made refuses
without just cause to accept it?
a. Consign or deposit the thing or sum due to the court
b. Payment by cession
c. Dation in payment
d. Application of payments
239. If the creditor to whom tender of payment has been made refuses without just cause to accept it, the
debtor shall be released from his obligation by the consignation of the thing or sum due. Consignation without
tender of payment shall release the debtor from responsibility in the following exceptional instances, except
a. When the creditor is absent or unknown, or does not appear at the place of payment
b. When the creditor is incapacitated to receive the payment at the time it is due
c. When, without just cause, the creditor refused to give a receipt
d. When two or more persons claim the same right to collect
e. When the title of the obligation has been lost
f. When the debtor makes an invalid tender of payment
240. In order that consignation may be effective the debtor must comply first with the following requisites or
formalities, except
a. The debt must be due.
b. The consignation was made by debtor because of some legal cause provided by law.
c. Previous notice of the consignation has been given to the persons interested in the performance of the
obligation. (1st notice to creditor of intent to consign)
d. The amount or thing was placed at the disposal of the court. E
e. After the consignation, the persons interested were notified thereof. (2nd notice to creditor of actual
consignation) f
f. The debtor must personally deposit the thing to the court rend not through his counsel.
241. Who shall shoulder the expenses of a valid consignation?
a. Debtor
b. Creditor
c. Government

I. Once the consignation has been duly made, the debtor may ask the judge to order the cancellation of the
obligation to extinguish the obligation.
II. Before the creditor has accepted the consignation, or before a judicial declaration that the consignation has
been properly made, the debtor may withdraw the thing or the sum deposited, allowing the obligation to remain in
force.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
243. The following arc effects once the consignation has been accepted by the creditor or the court has
declared that it has been validly made, except
a. The debtor is released in the same manner as if he had performed the obligation at the time of the
consignation, because this produces the same effect as a valid payment.
b. The accrual of interest on the obligation is suspended from the moment of consignation.
c. The deterioration or loss of the thing or amount consigned occurring without fault of the debtor must be
borne by the creditor, because use the risks of the thing are transferred to the creditor from the moment of
deposit.
d. Any increment or increase in value of the thing slier the consignation inures to the benefit of the debtor.
244. The following are the effects if, after the consignation has been made, the creditor should authorize the
debtor to withdraw the same, except
a. The creditor shall lose every preference which he may have over the thing.
b. The other co-debtors shall be released of their solidary status but not of their share in the obligation.
c. The guarantors and sureties shall be released.
d. The obligation shall be extinguished.
245. As a general rule, the loss of the specific thing on account of fortuitous event shall extinguish the
obligation. The following are the exceptions to the general rule wherein the debtor shall still be liable even there
is fortuitous even, except
a. When the law expressly provides that the debtor shall be liable even if the loss is due to fortuitous event.
b. When by express stipulation, the obligor is made liable even if loss occurs through fortuitous events.
c. When the nature of the obligation requires the assumption of risk. .
d. When the fault or negligence of the debtor concurs with the fortuitous event in causing the loss.
e. When the loss occurs after the debtor has incurred in delay.
f. When the debtor has promised to deliver the same thing to two or more different parties.
g. When the obligation to deliver a determinate object arises from a criminal act.
h. When the fortuitous event is the immediate, exclusive and proximate cause of loss.

I. An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or
destroyed due to fortuitous event.
II. In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not
extinguish the obligation.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
247. The following statements concerning the loss of the object of the obligation are correct, except
a. The courts shall determine whether, under the circumstances, the partial loss of the object of the
obligation is so important as to extinguish the obligation.
b. The debtor in obligations to do shall also be released when the prestation becomes legally or physically
impossible with the fault of the obligor.
c. When the service has become so difficult as to be manifestly beyond the contemplation of the parties, the
obligation may also be released therefrom, in whole or in part.
d. When the debt of a thing certain and determinate proceeds from a criminal offense, the debtor shall not be
exempted from the payment of its price, whatever may be the cause for the loss, unless the thing having
been offered by him to the person who should receive it, the latter refused without justification to accept
it.
e. The obligation having been extinguished by the loss of the thing the creditor shall have all the rights of
action which the debtor may have against third persons by reason of the loss.
248. What is the presumption whenever the thing is lost in the possession of the debtor in the absence of
earthquake, flood, storm or other natural calamity?
a. The loss was due to force majeure.
b. The loss was due to fortuitous event.
c. The loss was due to the debtor's fault.
d. The loss was due to the creditor's fault.
249. It is a mode of extinguishing obligation which is an act of liberality by virtue of which, without receiving
any equivalent, the creditor renounces the enforcement of the obligation, which is extinguished in its entirety or in
that part or aspect of same. It is essentially gratuitous and always requires the acceptance by the debtor.
a. Compensation
b. Confusion
c. Remission or Donation or Condonation or Renunciation
d. Novation
250. What is the nature of condonation or remission?

a. It is generally gratuitous and requires the acceptance by the obligor.
b. It is essentially gratuitous and requires the acceptance by the obligor.
c. It is generally onerous and requires the acceptance by the obligor.
d. It is essentially onerous and requires the acceptance by the obligor.
251. The following are required by law for validity of donation, except
a. If the donation involves P5,000 or less, there must be simultaneous delivery and acceptance.
b. If the donation exceeds P5,000, the donation and acceptance must be both in writing
c. If the donation involves immovable property, the donation and acceptance
mus7belothdidnopcuubmliecnitrtstrument.
d. If the donation involves movable, the donation and acceptance must be both in notarized
252. The following are the requisites of remission or condonation, except

a. The debt must be existing and demandable at the time the remission is made.
b. The renunciation of the debt must be gratuitous.
c. The debtor must accept the remission.
d. The remission or condonation must be expressly made and not impliedly.
253. What is the implication of the delivery of a private document evidencing a credit, made voluntarily by the
creditor to the debtor?
a. It implies that the voluntary return of the private document is presumed to be by reason of payment of the
debt.
b. It implies that the voluntary return of the private document is presumed to be by reason of condonation or
remission of the debt.
c. It implies that the voluntary return of the private document is presumed to be by reason of novation of the
debt.
d. It implies that the voluntary return of the private document is presumed to be by reason of confusion of
the debt.
254. If the heirs of the deceased creditor questioned the officiousness of the donation of credit evidenced by
the voluntary return of the private document to the debtor, what is the legal remedy of debtor?
a. The debtor may prove by evidence that the obligation is actually extinguished by payment and not by
donation.
b. The debtor is now mandatorily required to pay the obligation.
c. The debtor may ask the deceased creditor to testify.
d. The debtor may interpose the defense that the obligation is extinguished by the debt of the creditor.
255. The following statements concerning condonation or remission arc correct, except
a. Whenever the private document in which the debt appears is found in the possession of the debtor, it shall
be presumed that the creditor delivered it voluntarily, unless the contrary is proved.
b. The renunciation of the principal debt shall extinguish the accessory obligations.
c. The renunciation of the accessory obligation shall extinguish the principal debt
d. It is presumed that the accessory obligation of pledge has been remitted when the thing pledged, after its
delivery to the creditor, is found in the possession of the debtor, or of a third person who owns the thing.
256. It is a mode of extinguishing obligation that refers to the meeting in one person of the qualities of creditor
and debtor with respect to the same obligation.
a. Compensation
b. Condonation
c. Confusion or merger
d. Novation
257. The following are the requisites of merger or confusion, except

a. It must be gratuitous and requires acceptance by the obligor.
b. It must take place between the creditor and the principal debtor.
c. The very same obligation must be involved, for if the debtor acquires rights from the creditor but not the
particular obligation in question, there will be no merger.
d. The confusion or merger must be total or as regards the entire obligation.
258. The following statements concerning merger or confusion are correct, except
a. The effect of merger is to extinguish the obligation.
b. Merger which takes place in the person of the principal debtor or creditor benefits the guarantor.
c. Merger which takes place in the person of the guarantor extinguishes the principal obligation.
d. Confusion does not extinguish a joint obligation except as regards the share corresponding to the creditor
or debtor in whom the two characters concur.
259. It is a mode of extinguishing to the concurrent amount, the obligations of those persons who in their own
right are reciprocally debtors and creditors of each other.
a. Novation
b. Compensation or Offset
c. Merger
d. Remission
260. Which of the following statements pertains to facultative compensation?

a. It is a compensation which takes place by operation of law because the requisites of law are present.
b. It is a compensation which can be claimed by one of the parties who, however, has the right to object to
it, such as when one of the obligations has a period for the benefit of one party alone and who renounces
that period so as to make the obligations due.
c. It is a compensation wherein the parties agree to compensate their mutual obligations even if some
requisites of legal compensation are lacking.
d. It is a compensation decreed by the court in a case where there is a counterclaim.
261. The following statements concerning compensation are correct, except

a. The guarantor may set up compensation as regards what the creditor may owe the principal debtor.
b. Compensation may be total or partial and when the two debts are of the same amount, there is a total
compensation.
c. The parties cannel agree upon compensation of debts which are not yet due.
d. If one of the parties to a suit over an obligation has a claim for damages against the other, the former may
set it off by proving his right to said damages and the amount thereof.
e. When one or both debts are rescissible or voidable, they maybe compensated against each other before
they are judicially rescinded or avoided.
262. The following are the requisites of legal compensation or compensation by operation of law, except
a. Each one of the obligors be bound principally, and that he be at the same time a principal creditor of the
other.
b. Both debts consist in a sum of money, or if the things due are consumable, they be of the same kind, and
also of the same quality if the latter has been stated.
c. Both debts must be due.
d. Both debts must be liquidated and non-demandable.
e. That over neither of them there be any retention or controversy, commenced by third persons and
communicated in due time to the debtor.
263. Which of the following debts can be the subject of legal compensation?
a. Valid debts only
b. Valid, rescissible, voidable and unenforceable debts only
c. Valid, rescissible and voidable debts only
d. Valid and rescissible debts only
264. The following are the exceptional instances wherein legal compensation may not take place even if all the
requisites for legal compensation concur but facultative compensation may take place, except
a. When there is a renunciation of the effect of compensation by a party.
b. When one of the debts arises from the obligations of a deposit, in depositum
c. When one of the debts arises from the obligations of a bailee in commodatum.
d. When the one of the creditor has a claim for support due by gratuitous title.
e. When one of the debts consists in civil liability arising from a crime. f. When one of the debts pertains to
taxes. g. When the debts are payable in different places.
265. The following statements pertaining to legal compensation are correct, except
a. Legal compensation takes place by operation of law even though the debts may be payable at different
places, but there shall be an indemnity for expenses of exchange or transportation to the place of payment.
b. If a person should have against him several debts which are susceptible of compensation, the rules on the
application of payments shall apply to the order of the legal compensation.
c. When all the requisites for legal compensation are present, compensation takes effect by operation of law.
d. When all the requisites for legal compensation are present, both debts to the concurrent amount are
extinguished only if the creditors and debtors are aware of the compensation.
266. The following are the instances wherein the debtor may still set up compensation against the assignee of
creditor in case of assignment of credit, except
a. When the creditor communicated the assignment of his right to the third persons to the debtor and the
latter did not consent thereto.
b. When the debtor has consented to the assignment of rights made by a creditor in favor of a third person
and the assignor reserved his right to the compensation at the time he gave his consent.
c. When the assignment is made without the knowledge of the debtor.
d. When the debtor has consented to the assignment of rights made by a creditor without reservation as to
his right to compensation.
267. It is a mode of extinguishment an obligation by the substitution or change of the obligation by a

subsequent one which extinguishes or modifies the first.
a. Compensation
b. Novation
c. Condonation
d. Merger
268. The following are the requisites of novation, except

a. There must be a previous void obligation.
b. There must be agreement of all parties to the new contract.
c. There must be extinguishment of the old contract.
d. The new obligation must be valid.
269. Novation of obligation may take place by the following, except

a. Changing their object or principal conditions (Real novation)
b. Substituting the persons of the debtor (Expromission or Delegacion)
c. Subrogating a third person in thc rights of the creditor (Subrogation whether legal or conventional)
d. Changing their term or period (Both extending arid shorting of term)
270. Which of the following statements concerning the type of novation is correct?
a. Subjective or personal novation is the modification of the obligation by the change of the subject; it is
passive if there is substitution of the debtor, and it is active when a third person is subrogated in the rights
of the creditor.
b. Objective or real novation is the change of the obligation by substituting the object with another or
changing the principal conditions.
c. There is implied novation when there is such an incompatibility between the old and the new obligations
that they cannot stand together.
d. There is total novation when there is only a modification or change in some principal conditions of the
obligation.
271. Which of the following statements concerning novation is incorrect?

a. In order that an obligation may be extinguished by another which substitutes the same it is imperative that
it be so declared in unequivocal terms.
b. Novation is never presumed.
c. There is implied novation if the old and new obligations are on every point incompatible with each other.
d. Novation must only be expressed but it cannot implied.
272. The following statements concerning novation are correct, except

a. When the principal obligation is extinguished in consequence of a novation, accessory obligations may
subsist only in so far as they may benefit third person who did not give their consent
b. If the new obligation is void, the original obligation was extinguished, unless the parties intended that the
former should subsist in any event.
c. The novation is void if the original obligation was void, except when annulment may be claimed only by
the debtor, or when ratification validates acts which are voidable.
d. If the original obligation was subject to a suspensive or resolutory condition, the new obligation shall be
under the same condition, unless it is otherwise stipulated.
273. May the shortening of the term of contract result to implied novation?
a. Yes in all cases.
b. No in all cases.
c. As a general rule. Yes, especially if there is significant shortening of term of contract, which is the
principal condition of the contract, such in the old case of Kabalkalan vs Pacheco wherein the term of
right of way is significantly reduced to 7 years from 20 years.
d. Yes even if the shortening do not result to incompatibility between the first and second contract.
274. May the extension of the term of the contract result to implied novation?
a. Yes in all cases
b. No in all cases
c. As a general rule, NO, unless the change will show that the new contract is clearly incompatible with the
old contract so that both contracts cannot exist together.
d. Yes because implied novation can be presumed even in the absence of supporting circumstances.
275. Which of the following statements concerning novation involving substituting a new debtor in the place
of the original debtor is correct'?
a. It may be made even without the knowledge or against the will of original debtor, but not without the
consent of the creditor.
b. It may be made without the consent of creditor.
c. It cannot be made against the will of original debtor.
d. It must be made with the knowledge of original debtor.
276. It is one of the two types of novation involving the change ,f original debtor wherein the initiative does
not emanate from the original debtor and may be made eves without his knowledge since it consists in a third
person assuming the obligation and it logically requires the consent of third person and the creditor.
a. Expromission
b. Delegacion
c. Legal subrogation
d. Conventional subrogation
277. It is one of the two types of novation involving the change of original debtor wherein , the original debtor
(delegante) offers and the creditor (delegatario) accepts a third person (delegado) who consents to the substitution,
so that the consent of these three parties is necessary
a. Expromission
b. Delegation
c. Legal subrogation d
278. In what type of novation consisting of substitution of a new debtor will the insolvency of new debtor or
non-fulfillment of the obligation shall not give rise to any liability on the part of the original debtor unless the
original debtor gives his consent to substitution?
a. In expromission because the original debtor did not have the initiative in making the change, which might
have been made even without his knowledge. If there is consent of original debtor, he may me liable for
insolvency of new debtor.
b. In delegaction because the creditor consents to the substitution.
c. In either expromission or delegation.
d. Neither expromission nor delegation.
279. In delegation, may the insolvency of the new debtor, who has been proposed by the original debtor and
accepted by the creditor, revive the action of the latter against the original obligor?
a. Yes, under any circumstances because the obligation is already extinguished.
b. NO as a general rue except in two cases: 1) when said insolvency was already existing and of public
knowledge when he delegated his debt, or 2) when said insolvency was known to the original debtor
when he delegated his debt.
c. Yes even of the creditor has knowledge that the new debtor was insolvent at the time of delegation.
d. No because the debtor has not given his consent to the delegation.
280. It is a type of novation which refers to the transfer of all the rights of the creditor to a third person, who
substitute him in all his rights.
a. Novation
b. Compensation
c. Confusion
d. Subrogation
281. It is one of the two types of subrogation wherein the debtor, original creditor and third person agrees to
the substitution of creditor.
a. Expromission
b. Delegation
282. It is one of the two types of subrogation which is not presumed but despite the absence of agreement of
the original parties the third person is legally subrogated to the place of creditor by operation of law in exceptional
cases mentioned in Civil Code or Special Law.
a. Expromission
b. Delegacion
283. The following are the exceptional instances wherein legal subrogation is presumed, except
a. When a creditor pays another creditor who is preferred, even without the debtor's knowledge.
b. When, even without the knowledge of the debtor, a person interested in the fulfillment of the obligation
pays, without prejudice to the effects of confusion as to the latter's share.
c. In negotiable instruments, when there is valid payment for honor in accordance with the formality
required by Negotiable Instruments Law.
d. In property insurance, when the insurance company pays the insured even without the consent of
defendant who caused the injury to the property.
e. When a stranger pays a creditor without the knowledge of the debtor.

I. Subrogation transfers to the person subrogated the credit with all the rights thereto appertaining, either against
the debtor or against third persons, be they guarantors or possessors of mortgages, subject to stipulation in a
conventional subrogation.
II. A creditor, to whom partial payment has been made, may exercise his right for the remainder, and the creditor
shall be preferred against the person who has been subrogated in his place in virtue of the partial payment of the
same credit.
a. Both I and II
b. Neither I nor II
c. I only
d. II only

Regulatory Framework For Business Transactions COVERAGE: Obligations

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Regulatory Framework For Business Transactions COVERAGE: Obligations

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REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS

1. Article 1156 of the Civil Code defines an obligation as a

2. Which of the following statements best describes a negative obligation?

3. The following are the essential elements of an obligation, except

5. The following statements concerning an obligation are correct, except

6. The following are the requisites of a prestation or object of an obligation, except

7. The following are examples of vinculum, except

8. Which of the following obligation is not unenforeeabla by a court action

19. The following are examples of quasi-contracts, except

22. In which of the following instances will negotiorum gestio arise?

41. Which of the following statements concerning quasi-delict or tort is correct?

50. Which of the following refers to a determinate thing?

63. Which of the following statements is correct?

71. Delay can exist in the following obligations, except

80. Which of the following statements pertains to "fraud"?

92. Which of the following presumptions are correct?

98. The following obligations are demandable at once, except

99. It is an obligation which is subject to a condition.

101. The following are considered conditions, except

104. The following are obligations subject to suspensive conditions, except

105. Which of the following statements pertains to a protestativecondition?

106. Which of the following conditional obligations is void?

108. What is the effect of the condition not to do an impossible thing?

109. Which of the following obligations is valid?

110. Which of the following statements are correct?

133. Which of the following statements concerning reciprocal obligations is correct?

137. The following are the requisites of a period, except

138. Suspensive period and resolutory period are also known as

145. The following statements pertain to alternative obligations. Which is correct?

146. Who has the right of choice in case of alternative obligations?

163. In a facultative obligation, to whom shall the right of choice belong?

166. Which of the following statements is correct?

173. The following terms refer to solid, obligation, except

176. It is a solidarity that exists among the creditors.

181. Which of the following statements is incorrect?

182. Which of the following statements is correct?

192. The following are the modes of extinguishment obligations: (No-Co-Me-Re-Pa-Lo-Pre-Re-Ful-An)

205. Which of the following types of estoppel refers to estoppel in pais?

208. 'The following are the requisites of a valid payment. except

213. Which of the following statement is correct?

217. The following statements concerning payment are correct, except

223. Where shall payment of an obligation be made?

226. The following are the special forms of payment, except

233. Who has the right to application of payments?

234. Which of the following statements is correct?

237. Which of the following statements is correct?

242. Which of the following statements is correct?

246. Which of the following statements is correct?

250. What is the nature of condonation or remission?

252. The following are the requisites of remission or condonation, except

257. The following are the requisites of merger or confusion, except

260. Which of the following statements pertains to facultative compensation?

261. The following statements concerning compensation are correct, except

267. It is a mode of extinguishment an obligation by the substitution or change of the obligation by a

268. The following are the requisites of novation, except

269. Novation of obligation may take place by the following, except

271. Which of the following statements concerning novation is incorrect?

272. The following statements concerning novation are correct, except

284. Which of the following statements is correct?

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