@8901 - Law On Obligation

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CPA REVIEW SCHOOL OF THE PHILIPPINES

Manila
Regulatory Framework for Business Transactions Atty. Dante O. Dela Cruz

COVERAGE: Law on Obligation
Direction: Read and select the best answer for the following questions.
1. What is the definition of an obligation under Article 1156 of the New Civil Code of the
Philippines?
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. Which of the following is a positive and real obligation?

a. Obligation to teach
b. Obligation not to smoke in public place
c. Obligation to deliver the goods
d. None of the above
4. 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 conduct 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.
5. 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
6. 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 to do includes all kinds of work or services.
c. The obligation not to do consists in abstaining from some act.
d. The obligation not to give is a positive obligation.
7. The following are the requisites of a prestation or an object of an obligation, except
a. It must be possible, physically and juridically.
b. It must be 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.
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8. The following are examples of vinculum or efficient cause or juridical tie of an obligation, except
a. Relation established by law
b. Relation established by contract
c. Relation established by quasi-contract
d. Relation established by quasi-delict
e. Relation established by delict or crime
f. Relation established by natural obligation
9. Which of the following obligations is not enforceable by a court action?

a. Legal obligation
b. Contractual obligation
c. Civil obligation
d. Natural obligation
10. 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. However, voluntary
fulfilment of natural obligation by the debtor will preclude him from asking for
reimbursement from the creditor of the amount he has voluntarily paid.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
11. The following are examples of natural obligations that cannot be enforced by court action but
depends upon the voluntary 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 years 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
aner 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 13th month pay of the latter.
12. 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/omissions punishable by law
f. Religious doctrines
13. It is a source of an obligation that refers to the principles and regulations established in a
community by some 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
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14. 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.
15. What is the source of obligation of parents to provide support to their children?
a. Law
b. Contracts
c. Quasi-contracts
d. Quasi-delicts
e. Delict
16. It is a source of an obligation that refers to meeting of minds between two persons whereby 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
17. 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
18. It is a source of an that refers to a juridical relation which arises from a certain lawful, voluntary
and unilateral act, to the end that no one may be unjustly enriched or benefited at the expense of
another.
a. Delict
b. Quasi-contract
c. Contract
d. Quasi-delict
19. 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. Il. Solutio 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
20. The following are examples of quasi-contracts, except

a. A person receives something when there is no right to demand it or it was unduly delivered
through mistake.
b. A person takes charge of the agency or management of business or property of another without
authority or without consent of the latter.
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.
e. A person caused injury to another person through fault of negligence.
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21. What is the nature of the responsibility or liability of two or more officious managers 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.
22. 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.
23. In which of the following instances will negotiorum gestio arise?

a. When the property or 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.
24. What is the nature of responsibility or liability of two or more payees in solutio indebiti when
there has been payment of what is not due?
a. Solidary
b. Joint
c. Pro-rata
d. Subsidiary
25. When will a person who accepts an undue payment of a sum of money be liable for interest?
a. When he receives the undue payment in bad faith.
b. When he receives the undue payment in good faith.
c. When he receives the undue payment, regardless of being bad or good faith.
d. Under all instances.
26. 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. He is liable only in so far as he has thereby been benefited.
b. When he is not guilty of negligence.
c. He is liable in any instances.
d. When the reason of loss is fortuitous event.
27. It is source of an obligation that refers any act or omission punishable by law
a. Crime or Delict
b. Quasi-contract
c. Contract
d. Quasi-delict
28. Is a person criminally liable also liable to pay civil damages to a private offended party?
a. Yes, as a general rule, unless the crime committed does not cause civil damages,
b. Yes in all cases.
c. No unless the People of the Philippines ask for damages.
d. No because criminal liability means imprisonment only.
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29. What is the nature of civil liability of two or more persons (crimina) who are convicted of crime?
a. Solidary
b. Joint
c. Pro-rata
d. Subsidiary
30. Article 100 of the Revised Penal Code provides that every person criminally liable for a felony is
also civilly liable for damages. Under Article 12 of the Revised Penal Code, the following persons
will not be imprisoned (exempted from criminal liability) but will still be liable for civil damages
(civil liability) for their acts, except
a. An imbecile or insane person.
b. A minor or any person under 18 years 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 any person who acts in the performance of his
official duty or any wife suffering from battered woman syndrome who killed or injured his
batterer.
31. 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.
32. What degree of evidence must be proved by the prosecution for the conviction of an accused of a
crime?
a. Proof beyond reasonable doubt
b. Clear and convincing evidence
c. Preponderance of evidence
d. Substantial evidence
33. What degree of evidence must be proved by the private offended party to be entitled to civil
damages arising from crime or delict?
34. What degree of evidence must be proved by the plaintiff in order to recover civil damages arising
contract or quasi-delict?
35. 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. Yes because a single act may result to different sources of obligation and crime and quasi-delict
are separate and distinct sources of civil liability but the private offended party (plaintiff)
cannot recover twice civil damages for a single act since civil damages are awarded to
compensate the victim for the injury caused to him but not to unjustly enrich him.
b. No because the accused shall not be subject to double jeopardy.
c. Yes only if there is a contract between the contending parties.
d. No because the private offended party is barred by the principle of res judicata.
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36. 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
37. 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.
38. 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
39. The following are the distinctions between quasi-delict and crime or delict, except
a. The right violated by a quasi-delict is a private right while the right violated by a crime is a
public 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 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 convict a person of crime, only preponderance of evidence is required but in
order to prove negligence in quasi-delict, proof beyond reasonable doubt is required.
40. In case of tort, when will the plaintiff or injured party be barred or precluded from recovering
damages?
a. When plaintiffs own negligence was the immediate, proximate and sole cause of his injury.
b. When the reason of the injury is a fortuitous event but with contributory negligence of
tortfeasor.
c. When plaintiffs negligence was only contributory, the immediate and proximate cause of
the injury being the defendant's lack of due care.
d. When the immediate and proximate cause of his injury is the negligence of the tortfeasor.
41. 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 or quasi-delict 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.
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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 within their custody.
f. Boyfriend or girlfriend is liable for the quasi-delict committed by their partner during their
relationship.
42. 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 all 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 reasonable doubt.
43. What is the nature of liability of two or more persons who are liable for quasi-delict or tort a.k.a.
joint tortfeasors?
a. Solidary
b. Joint
c. Pro-rata
d. Proportionate
44. 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 its employee driver was the one
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
45. 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
46. 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
47. Using the same data in 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
48. Using the same data in 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
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49. Using the same data in 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
50. 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
51. Which of the following refers to a determinate thing or specific thing or delimited generic thing?
a. White horse
b. Pilot ballpen
c. Car with engine number 143-245
d. House and lot in Villa Lourdes Subdivision
52. Which of the following refers to an indeterminate thing or generic thing?

a. Black Honda Civic Car with Plate Number CPA-123
b. Which Machinery with Serial Number 123-456
c. Red motor cycle with engine number 143-245
d. Studio Type Condominium unit in Avida Taft Tower I
53. The following are the incidental or accessory obligations in an obligation to deliver a determinate
thing or specific thing or delimited generic 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.
54. 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 or specific or delimited generic 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.
55. In an obligation to deliver a determinate or specific or delimited generic 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 or specific or delimited generic 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.
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56. In an obligation to deliver a determinate thing, when does the creditor or obligee obtain real 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 it arises.
c. From the time the fruits are delivered physically or constructively.
57. 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. From 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.
58. 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 or against the whole world.
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 be exercised
against a particular person.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
59. 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.
60. 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 or delimited generic thing?
a. Action for specific performance in addition to damages under Article 1170.
b. He may ask the obligation to be complied with at the expense of the debtor with damages.
c. Action for rescission of the obligation.
d. Action for annulment of the contract.
61. 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 file 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.
62. 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.
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63. 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
64. 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 ay 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.
65. 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
66. 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 are 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 income.
d. Commercial fruits are fruits arising from commercial transaction.
67. 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.
68. 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.
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69. 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
70. 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.
71. 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.
72. 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.
73. Delay can exist in the following obligations, except

a. Obligation to do
b. Obligation to give
c. Obligation not to do
74. As a general rule, demand by the creditor is necessary in order for debtor's delay to exist. However,
the following are the exceptional cases When demand by the creditor shall not be necessary in
order for debtor's delay to exist, except
a. When the obligation expressly so declares that demand is not necessary for delay to exist or
that demand is waived.
b. When the law expressly so declares that demand is not necessary for delay to exist.
c. 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.
d. When there is unilateral obligation.
e. When demand would be useless, as when the obligor has rendered it beyond his power to
perform.
75. 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.
76. Delay or Default (Mora) on the part of the debtor or obligor is called
a. Mora solvendi
b. Mora accipiendi
c. Compensatio morae
d. Mora Obligor
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77. 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 or extrajudicially.
78. Which of the following is the effect of delay on the part of the debtor a.k.a mora solvendi?
I. The debtor becomes liable for damages for the delay.
II. When it has for its object a determinate thing, the delay places the risk of the thing on the
debtor.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
79. The following are the effects of the delay on the part of the creditor a.k.a mora accipiendi, 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.
80. What is the effect of delays on both debtor and creditor a.k.a. compensatio morae?
a. The delays on the part of both debtor and creditor are compensated or offsetted, therefore,
no one is liable for damages.
b. The debtor remains to be liable for damages.
c. The creditor remains to be liable for damages.
d. The obligations becomes void.
81. When will the benefits arising from default or delay stop?
a. By delay of the other party.
b. By rescission of the contract.
c. By payment of damages.
d. By renunciation by other party of effects of delay or by prescription.
82. 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. Fraud or dolo
b. Negligence or fault or culpa
c. Delay or default or mora
d. Contravention of the tenor of obligation
e. Good faith
83. 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.
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84. When is the debtor not liable for damages in cases of contravention of tenor or delay in the
performance of obligation?
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.
85. The following are the types of damages that may be awarded to the aggrieved party by the court,
except
a. Moral damages 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 damages 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 cannot, 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 damages are those damages that are unconscionable, iniquitous, excessive,
exorbitant and contra bonus mores.
86. 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
87. 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
88. 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
89. 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
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90. 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
91. 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
92. 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
93. 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 is the immediate, proximate and sole cause of the damage or
injury.
94. 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 debtor's will.
b. It must be impossible to foresee the event which constitutes the case fortuito 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 manner.
d. The obligor must participate in the aggravation of the injury resulting to the creditor.
95. 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 said 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.
a. I and II
b. I only
c. II only
d. Neither I nor II
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96. 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.
97. 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
98. 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
99. Which of the following statements concerning rights acquired by 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.
100. 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
101. The following obligations are demandable at once or immediately demandable, 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).
102. It is an obligation which is subject to a condition.

b. Pure obligation
c. Natural obligation
d. Civil obligation
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103. 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
104. 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.
105. 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 resolutary period
d. Obligation ex die or with a suspensive period which period may be fixed by court
106. The following are the distinctions between suspensive condition and resolutory condition,
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.
107. The following obligations are subject to suspensive conditions, except

a. I will give you P 1,000 if you pass the CPA board exam.
b. You can use the book until you graduate in law school.
c. He will dance if he wins in lotto.
d. She will work if KFC becomes number 1.
108. The following obligations are subject to resolutory conditions, except

a. You will be entitled to a cellphone if you pass the bar exam.
b. You can use the car until Regina graduates.
c. You can possess the farm lot until you become a lawyer.
d. You can rent the building until you finish your MBA.
109. Which of the following statements pertains to a potestative condition?
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.
110. 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.
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111. 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
112. 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.
113. Which of the following obligations subject to a suspensive condition 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.
114. An obligation to pay a sum of money is subject to the condition that a certain person
shall arrive at a designated place in one year. This obligation will be extinguished if
I. One year passes 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
115. 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. This obligation shall become effective and the land should be delivered
to X if
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
116. What is the effect if the obligor or debtor voluntarily prevented the fulfillment of the suspensive
condition of an obligation subject to a suspensive condition?
a. The obligation is extinguished.
b. The obligation remains to be subject to the condition.
c. The suspensive condition shall be deemed fulfilled and the obligation becomes
demandable.
d. The obligation becomes with a period.
117. When shall the effects of a conditional obligation to give produce effect?
a. They shall be given prospective effect once the condition has been fulfilled.
b. They shall retroact to the day of the constitution or perfection of the obligation
once the condition has been fulfilled.
c. They shall not be given retroactive effect once the condition has been fulfilled.
d. They shall be given retroactive effect even if the condition is not fulfilled.
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118. X sells a piece of land to A on January 1, 2020 subject to a suspensive condition. Then, on
October 4, 2020, X sells the land unconditionally to B. The suspensive condition on contract
of sale of land to A 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.
119. 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.
120. 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 the condition or period is
suspensive or resolutory, 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.
121. 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.
122. Before the fulfillment or during pendency of the suspensive condition, what shall the creditor
may do in an obligation subject to a suspensive condition?
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.
123. 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 suspensive condition?
a. The debtor can recover the sum of money and interests even if the creditor acted in good
faith.
b. The debtor can recover the sum of money but 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 under any circumstances.
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124. During the pendency of the suspensive period in an obligation with a suspensive period, the
debtor has paid by mistake a sum of money. What is the remedy of the debtor before the arrival
of the suspensive period?
a. The debtor can recover the sum of money plus 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 interest if the creditor acted in good
faith.
125. 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 indemnification 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.
126. 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 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 through 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 of reason, shall be borne by the creditor.
127. 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. 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.
128. The determinate thing is considered lost in any of the following 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.
129. 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 shallan action for damages.
c. They shall return to each other what they have received.
d. They shall rescind the obligation.
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130. When the 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
d. The fruits shall be retained by the person who received the thing and shall be reimbursed for
131. 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
132. 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.
133. 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.
134. 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.
135. 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 remedies and the injured party cannot have both.
d. Yes because the injured party is protected by law.
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136. Which of the following statements concerning reciprocal obligations is correct?

I. The court shall decree the rescission claimed. unless there is 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
137. 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 determines their
extinguishment.
b. Obligation with a period
c. Pure obligation
d. Demandable obligation
138. 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 once, 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.
139. The following are the distinctions between a condition and a period, except
a. A condition is an uncertain event while a period is an 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 suspensive 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 suspensive
period left to the debtor's will shall annul the obligation.
140. The following are the requisites of a period, except

a. It must be future.
b. It must be certain.
c. It must be possible.
d. It must be past.
141. 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
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142. 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
143. If there is no stipulation 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 debtor and creditor.
d. The term is for the benefit of the debtor.
144. 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.
145. 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 an obligation with a period,
except
a. If the obligation does not fix a period, but from its nature and the 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.
146. The following are the instances wherein the debtor shall 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 has been contracted, the debtor becomes insolvent and he does
not give a guaranty or security for the debt.
b. When the debtor does not furnish to the creditor the guaranties or securities which he has
promised.
c. When by debtor's 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 or securities after their establishment were
destroyed, unless the debtor immediately gives new one equally satisfactory.
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. When the creditor granted grace period or extension of payment to debtor.
147. 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
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148. 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
149. 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.
150. 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 part 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.
151. In alternative obligations, when shall the choice of prestation produce 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.
152. 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.
153. 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.
154. 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 prestation.
155. 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 has 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.
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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.
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 event, 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.
158. 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 last object plus damages.
d. He shall have the right to indemnity for the value of the any object plus damages.
159. 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.
160. 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 without right to damages, 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.
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161. It is an obligation wherein only one prestation has been agreed upon but the obligor may render
another in substitution.
c. Facultative obligations
162. 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
163. What is the effect of the loss or deterioration of 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 on account of the loss.
164. 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 even if the loss is not due to fortuitous event.
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.
165. 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 even if the loss is due to fortuitous event.
166. 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 loss of the object.
d. The obligation remains to exist.
167. 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 by reason of debtor's fault may
affect the obligation in case the right to choose is given to creditor while in facultative
obligation the loss before substitution of that which may be given as substitute even due to
the fault of debtor does not affect the obligation.
c. In alternative obligation, the loss of one of the things due by reason of fortuitous event does
not extinguish the obligation while in facultative obligation, the loss of that which is due
as the object of the obligation by reason of fortuitous event will extinguish such obligation.
d. 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.
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168. 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
169. In a conjunctive obligation, to whom shall the right of choice belong?

a. Debtor unless granted to the creditor
b. Creditor unless granted to the debtor
c. Either debtor or creditor
d. Neither debtor nor creditor
170. Which of the-following statements is correct?

I. Joint obligation is one in 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.
II. Solidary obligation is one in which each debtor is liable for the entire obligation and each
creditor is entitled to demand the whole obligation.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
171. What is the disputable presumption of law as to the type of obligation when there is concurrence
of two or more creditors or of two or more debtors in one and the same obligation?
a. Joint
b. Solidary
c. Divisible
d. Indivisible
172. The following are the exceptional instances when the obligation is considered solidary, except
a. When the obligation expressly so states that it is solidary.
b. When the law requires the obligation to be solidary.
c. When the nature of the obligation requires the obligation to be solidary.
d. When the obligation is indivisible.
173. The following terms refer to solidary obligation, except
a. Mancomunada solidaria
b. Joint and several
c. In solidum
d. Pro rata or proportionately
174. 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
175. Using the same data in preceding number, how much may D collect from A if the obligation is
passive solidary?
a. P6,000,000
b. P3,000,000
c. P2,000,000
d. P1,000,000
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active solidary?
a. P6,000,000
b. P3,000,000
c. P2,000,000
d. P1,000,000
mixed solidary?
a. P6,000,000
b. P3,000,000
c. P2,000,000
d. P1,000,000
178. 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 vices of each obligation arising from the 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.
179. The following statements pertaining concerning obligations are correct, except
a. Solidary may exist although the creditors and the debtors may not be bound in the same
manner and by the same period and conditions.
b. The indivisibility of an obligation does not give rise to solidarity.
c. The solidarity of an obligation does not imply indivisibility.
d. If the division of obligation 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 be liable for his share.
180. It is a solidarity that exists among the creditors.

a. Mixed solidarity
b. Active solidarity
c. Passive solidarity
d. Simple solidarity
181. The following statements pertaining to solidary obligation are correct, except
a. Each one of the solidary creditors may do whatever may be useful to the others, but not
anything which may be prejudicial 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.
182. Statements concerning the payment of solidary obligation are correct,

a. Payment made by one of the solidary debtors extinguishes the obligation and if two or
more solidary 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 solidary 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.
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183. 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 solidary 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
185. The following acts made by any of the solidary creditors with any of the solidary debtors shall
extinguish the obligation, except
a. Novation
b. Compensation
c. Confusion
d. Remission
e. Extension of term for payment
186. 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 cannot
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.
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187. 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 such as illegality or
prescription
b. Defenses personal to defendant-debtor such as minority or insanity or incapacity
c. Defenses personal to other debtors as regards that part of the debt for which the latter are
responsible
d. Defense of insolvency of one of solidary debtors up to the extent of share of such insolvent
debtor
188. 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.
189. 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.
190. 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 while the other debtors are
willing.
191. 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 or convert the action to monetary amount
d. Ask the other co-debtors to fulfill the entire obligation
192. It is an obligation which has an accessory 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
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193. The following statements concerning obligations with a penal clause are correct, except
a. The penalty stipulated must not be contrary to law, morals, or public order to be
enforceable.
b. Obligations with a penal clause must be construed strictly against the awarding of penalty.
c. In case of nonperformance of obligations with a penal clause, the debtor cannot have both
action for enforcement of penalty for noncompliance of obligation and action for specific
performance of obligation.
d. The debtor has the absolute right to just pay the penalty instead of fulfilling the obligation.
194. 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 iniquitous or unconscionable.
c. The nullity of the principal obligation carries with it that of the penal clause.
d. The nullity of the penal clause carries with it that of the principal obligation.
195. In obligation with a penal clause, the penalty shall substitute the indemnity for damages and
the payment of interests 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 or
liquidated damages in the agreement?
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.
196. The following are the modes of extinguishment of obligations, except: (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 — Remission or Donation or Condonation or Renunciation
e. Pa — Payment or Performance
f. Lo — Loss of the determinate thing due
g. Pre — Prescription of right to file an action converting the civil obligation to natural
obligation
h. Re — Rescission of Rescissible Contract
i. Full — Fulfillment of Resolutory Condition or Arrival of Resolutory Period
j. An — Annulment of Voidable Contract
k. Attainment of suspensive condition or arrival of suspensive period
197. It refers to the mode of extinguishment of right to file an action or obligation by the mere lapse
of time fixed by law. It converts a civil obligation into a natural obligation.
a. Novation
b. Prescription
c. Compensation
d. Remission
198. What is the prescriptive period for civil action based on oral contract?
a. 6 years
b. 10 years
c. 4 years
d. 8 years
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199. What is the prescriptive period for civil action based on written contract?
a. 6 years
b. 10 years
c. 4 years
d. 8 years
200. 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
201. What is the prescriptive period for civil action based on quasi-contract?
a. 6 years
b. 10years
c. 4 years
d. 8 years
202. What is the prescriptive period for civil action based on obligation created by law or judgment
of court?
a. 6 years
b. 10years
c. 4 years
d. 8 years
203. What is the prescriptive period for civil action of forcible entry or unlawful detainer or based
on oral defamation?
a. 1 year
b. 10 years
c. 4 years
d. 8 years
204. 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
205. What is the prescriptive period to file a real action over immovables?
a. 30 years
b. 10 years
c. 4 years
d. 8 years
206. 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
207. 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.
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208. 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 rise to
a presumption that the party entitled to assert it either has abandoned or declined to assert it.
This is an equitable but not based on substantive law.
a. Laches
b. Prescription
c. Novation
d. Confusion
209. 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
210. 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 changed that the latter cannot, without injury
or prejudice, be restored to his former state.
211. It is a mode of extinguishing obligation which refers to the fulfillment of the prestation due.
a. Novation
b. Payment or Performance
c. Compensation
d. Merger
212. 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 (debtor) as well as the one receiving (creditor) payment should have
the required capacity.
c. It should be made by the debtor to the creditor.
d. It should be made at the right time and place.
e. It should be made through delivery of legal tender only.
213. 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 case 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 obligee or creditor.
d. When the obligee or creditor accepts the performance. knowing its incompleteness or
irregularity, and without expressing any protest or objection, the obligation is deemed
fully complied with.
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214. 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.
215. What is the right of a third person who pays for the 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 only insofar as the payment has been beneficial to the debtor
but there will be no legal subrogation.
216. 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 valid as to the creditor who has accepted it.
d. The payment will subrogate the third person with creditor's rights.

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
218. 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 such as heirs or assignees of creditor
d. Any person authorized by the creditor to receive payment such as agent or representative
of creditor
219. 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 payment to a third person redounded to the benefit of the creditor.
d. When the debtor was judicially ordered to retain the debt.
220. 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 cases 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 creditor ratifies the payment to the third person.
c. If by the creditor's conduct, the debtor has led to believe that the third person had authority
to receive payment.
d. If the third person is not authorized by the creditor.
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221. 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.
222. Who shall shoulder the extra-judicial expenses required by the payment of an obligation?
a. Debtor
b. Creditor
c. Government
223. 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 part unliquidated, the debtor may effect the
payment of the former without waiting for the liquidation of the latter.
224. 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
225. 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 coin, 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.
226. The following are the rules concerning the payment of debts in money, except.
a. The payment of debts in money shall be made in the currency stipulated even it is foreign
currency.
b. 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.
c. 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.
d. In case an extraordinary inflation or deflation of the currency stipulated should supervene,
the value of the currency at the time of the payment of the obligation shall be the basis of
payment, unless there is an agreement to the contrary.
227. 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.
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228. In the absence of express stipulation as to the place of payment, where shall payment of an
obligation to deliver a determinate or specific or delimited thing be made?
b. Place designated by third party.
229. In the absence of express stipulation as to the place of payment, where shall payment of an
obligation to deliver an indeterminate or generic thing be made?
b. Place designated by third party.
230. 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
231. 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.
Generally, the obligation is fully extinguished by this special form of payment in the absence
of contrary agreement.
a. Application of payment
b. Payment by cession
c. Dation in payment or dacion en pago
232. 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
233. What law shall be govern dation in payment or dacion en pago as a mode of extinguishing
obligation?
a. Law on Barter
b. Law on Obligation
c. Law on Sales
d. Law on Credit Transactions
234. 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 the credits. Generally, the debtor will be released
from his obligations but only up to the extent of the proceeds from the sale of his properties by
the creditors.
c. Payment by cession or Assignment
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235. The following are the distinctions between dation in payment and payment by cession, except
a. Whereas dation en pago 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 FRIA of 2010.
236. 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
237. 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
239. 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 principal.
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 paid first, the debtor cannot
vary the agreement.
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240. The following are the rules 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 offer 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
242. 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
243. 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
b. When the creditor does not appear at the place of payment
c. When the creditor is incapacitated to receive the payment at the time it is due
d. When. without just cause. the creditor refuses to give a receipt
e. When two or more persons claim the same right to collect
f. When the title of the obligation has been lost
g. When the debtor makes an invalid tender of payment
244. 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 which
is mora accipiendi or delay on the part of creditor,
c. Previous notice of the consignation has been given to the creditor or persons interested in
the performance of the obligation. (notice to creditor of intent to consign)
d. The amount or thing was placed at the disposal of the court.
e. After the consignation. the creditor or persons interested in the performance of obligation
were notified thereof. (2nd notice to creditor of actual consignation)
f. The debtor must personally deposit the thing to the court and not through his counsel.
245. Who shall shoulder the expenses of a valid consignation?

a. Debtor
b. Creditor
c. Government
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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
247. The following are 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 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 aner the consignation inures to the benefit
of the debtor.
248. The following are the effects if, after the consignation has been made, the creditor should
authorize the consigning debtor to withdraw the same, except
a. The creditor shall lose every preference which he may have over the thing.
b. The consigning and withdrawing debtor shall remain to be solidarily liable to the
obligation.
c. The other co-debtors' liability to the obligation will be converted from solidary to joint.
d. The guarantors and sureties shall be released.
e. The obligation shall be extinguished.
249. 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 event, 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 or specific or delimited
generic thing shall be extinguished if it should be lost or destroyed due to fortuitous event.
II. In an obligation to deliver a generic or indeterminate 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
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251. The following statements concerning the loss of the object of the obligation due to fortuitous
event 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. 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.
c. 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.
d. Loss due to fortuitous event as a mode of extinguishment of obligation is applicable to
obligation to deliver a generic thing.
252. Which of the following statements is correct about the effects of fortuitios event in obligation
to do?
a. The debtor in obligations to do shall also be released when the prestation becomes legally
or physically impossible without the fault of the obligor.
b. 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.
c. Both A and B
d. Neither A nor B
253. 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.
254. 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 the 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
255. 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.
256. The following formality or solemnity are required by law for validity of donation, except
a. If the donation involves movable property worth P5,000 or less, there must be simultaneous
delivery and8 acceptance.
b. If the donation involves movable property worth more than P5,000, the donation and
acceptance must be both in writing.
c. If the donation involves immovable property, the donation and acceptance must be both in
public instrument.
d. If the donation involves movable, the donation and acceptance must be both in notarized
document.
257. 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 can only be expressly made but not impliedly.
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258. 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 debts
259. 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.
260. The following statements concerning condonation or remission are 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.
261. 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
262. 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.
263. 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.
264. 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
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265. 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.
266. 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. 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.
d. When one or both debts are rescissible or voidable, they may be compensated against each
other before they are judicially rescinded or avoided.
e. The parties cannot agree upon compensation of debts which are not yet due.
267. 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 unliquidated 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.
268. 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
269. 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 depositary 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.
270. 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.
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271. It is a mode of extinguishment of 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
272. The following are the requisites of novation, except
a. There must be a previous valid 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 void.
273. 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 the rights of the creditor (Subrogation whether legal or
conventional)
d. Changing their term or period (Both extension and shortening of term for payment)
274. Which of the following statements concerning the type of novation is incorrect?
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.
275. 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 be implied.
276. 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 insofar 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.
277. 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 does not result to incompatibility between the first and second
contract.
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278. 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.
279. 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.
280. It is one of the two types of novation involving the change of original debtor wherein the
initiative does not emanate from the original debtor and may be made even 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
281. In expromission, will the insolvency of new debtor or non-fulfillment of the obligation by the
new debtor give rise to any liability on the part of the original debtor?
a. No as a general rule because the original debtor did not have the initiative in making the
change, which might have been made even without his knowledge. However, if there is
consent of original debtor to the substitution or the original debtor acted in bad faith, he
may become liable for the insolvency of new debtor.
b. No in all cases.
c. Yes in all cases.
d. Yes as a general rule unless there is agreement to the contrary.
282. 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 the three parties is necessary.
a. Expromission
b. Delegacion
283. In delegacion, 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 debtor?
a. Yes, under any circumstances because the obligation is already extinguished.
b. No as a general rule except in two cases: l) 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.
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284. 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. It 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.
a. Novation
b. Compensation
c. Confusion
d. Subrogation
285. It is one of the two types of subrogation wherein the debtor. original creditor and third person
agree to the substitution of creditor.
a. Expromission
b. Delegacion
286. If conventional partial subrogation has occurred, how shall the insufficient assets of debtor be
applied to the remaining claim of original creditor and claim of subrogated creditor arising from
the partial subrogation?
a. The insufficient assets shall be applied equally to the original creditor and subrogated
creditor.
b. The insufficient assets shall be applied proportionately to the original creditor and
subrogated creditor.
c. The insufficient assets shall be applied first to the claim of original creditor and the
remaining assets will be given to subrogated creditor.
d. The insufficient assets shall be applied first to the claim of subrogated creditor and the
remaining assets will be given to original creditor.
287. 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
288. 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. The obligation having been extinguished by the loss of the thin, the creditor shall have
all the rights of action which the debtor may have against third persons by reason of the
loss
f. When a stranger pays a creditor without the knowledge of the debtor.
289. It refers to the juridical tie or efficient cause the binds the parties to the obligation.
a. Obligee
b. Obligor
c. Prestation
d. Vinculum
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290. In what type of obligation of obligation to deliver a thing is loss due to fortuitous event as a
mode of extinguishing the obligation applicable?
a. Obligation to deliver a generic thing
b. Obligation to deliver a specific thing
c. Obligation to deliver an indeterminate thing
d. Obligation to deliver a common thing
291. A, B, C wrote a promissory note which states "We promise to pay P60,000 to D and E." D
indorsed back the promissory note to A. How much obligation is extinguished by confusion or
merger?
a. P10,000
b. P20,000
c. P30,000
d. P60,000
292. A, a minor, B and C wrote a promissory note which states promise to pay P30,000 to D." How
much may D validly collect from
C if becomes insolvent?
a. P30,000
b. P20,000
c. P10,000
d. None
293. A, B and C obliged themselves to deliver a specific car worth P300,000 to D. A and B are
willing to deliver the car but C refused to perform the obligation despite repeated demands from
D. What is the proper legal remedy available to D?
a. File an action for exact fulfilment with damages against C.
b. File an action for exact fulfilment with damages against A, B and C.
c. File an action for monetary amount against A and B for P 100,000 without damages each
and against C for P 100,000 plus damages.
d. File an action for rescission of obligation plus damages against A, B and C.
294. In which of the following civil obligations is the right to file an action prescribe in four years?
a. Written contract
b. Quasi-delict
c. Oral contract
d. Quasi-contract
295. A has checking account in BDO Unibank with positive balance of P 1,000,000. A borrowed
P 1,000,000 from the same bank. At the maturity date of the loan payable of A, what mode of
extinguishing obligation is present?
a. Condonation
b. Merger
c. Compensation
d. Delegacion
296. Which obligation may become the subject matter of legal compensation or offset?
a. Obligation of borrower in a contract of loan or mutuum
b. Obligation of bailee in a contract of commodatum
c. Obligation of depositary in a contract of deposit
d. Obligation of convicted person arising from his crime
-End-
8901
46 | P a g e
ANSWER
1 C 51 C 101 D 151 B 201 A 251 D
2 D 52 D 102 A 152 C 202 B 252 C
3 C 53 D 103 B 153 C 203 A 253 C
4 E 54 C 104 C 154 B 204 D 254 C
5 A 55 B 105 D 155 B 205 A 255 B
6 D 56 C 106 D 156 C 206 D 256 D
7 D 57 A 107 B 157 D 207 D 257 D
8 F 58 C 108 A 158 C 208 A 258 B
9 D 59 D 109 A 159 A 209 A 259 A
10 C 60 A 110 A 160 D 210 A 260 C
11 D 61 D 111 B 161 C 211 B 261 C
12 F 62 A 112 D 162 B 212 E 262 A
13 A 63 C 113 C 163 D 213 A 263 C
14 D 64 B 114 C 164 C 214 C 264 B
15 A 65 C 115 D 165 B 215 D 265 B
16 B 66 D 116 C 166 D 216 D 266 E
17 C 67 C 117 B 167 D 217 B 267 D
18 B 68 D 118 C 168 B 218 B 268 C
19 C 69 B 119 C 169 D 219 D 269 G
20 E 70 C 120 B 170 C 220 D 270 D
21 A 71 B 121 D 171 A 221 D 271 B
22 D 72 A 122 D 172 D 222 A 272 D
23 C 73 C 123 B 173 D 223 B 273 D
24 A 74 D 124 A 174 D 224 A 274 D
25 A 75 B 125 B 175 B 225 A 275 D
26 A 76 A 126 F 176 C 226 D 276 B
27 A 77 A 127 D 177 A 227 B 277 C
28 A 78 C 128 D 178 D 228 A 278 C
29 A 79 C 129 C 179 D 229 C 279 A
30 E 80 A 130 C 180 B 230 D 280 A
31 D 81 D 131 B 181 B 231 C 281 A
32 A 82 E 132 C 182 D 232 B 282 B
33 C 83 C 133 A 183 C 233 C 283 B
34 C 84 C 134 C 184 C 234 C 284 D
35 A 85 G 135 C 185 E 235 E 285 D
36 C 86 D 136 A 186 D 236 B 286 C
37 A 87 A 137 B 187 D 237 A 287 C
38 B 88 B 138 D 188 A 238 A 288 F
39 E 89 C 139 D 189 A 239 B 289 D
40 A 90 D 140 D 190 D 240 D 290 B
41 F 91 C 141 C 191 C 241 D 291 A
42 B 92 C 142 C 192 B 242 A 292 B
43 A 93 D 143 D 193 D 243 G 293 C
44 A 94 D 144 D 194 D 244 F 294 B
45 D 95 A 145 D 195 D 245 B 295 C
46 B 96 E 146 G 196 K 246 C 296 A
47 D 97 B 147 A 197 B 247 D
48 D 98 A 148 D 198 A 248 E
49 D 99 C 149 B 199 B 249 H
8901
47 | P a g e
50 B 100 B 150 D 200 D 250 C
8901
48 | P a g e
8901

@8901 - Law On Obligation

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1|P a g e

CPA REVIEW SCHOOL OF THE PHILIPPINES

Regulatory Framework for Business Transactions Atty. Dante O. Dela Cruz

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

3. Which of the following is a positive and real obligation?

9. Which of the following obligations is not enforceable by a court action?

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

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

52. Which of the following refers to an indeterminate thing or generic thing?

65. Which of the following statements is correct?

73. Delay can exist in the following obligations, except

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

95. Which of the following presumptions are correct?

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

104. The following are considered conditions, except

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

108. The following obligations are subject to resolutory conditions, except

110. Which of the following conditional obligations is void?

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

113. Which of the following obligations subject to a suspensive condition is valid?

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

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

141. Suspensive period and resolutory period are also known as

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

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

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

169. In a conjunctive obligation, to whom shall the right of choice belong?

170. Which of the-following statements is correct?

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

182. Statements concerning the payment of solidary obligation are correct,

183. Which of the following statements is incorrect?

184. Which of the following statements is correct?

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

212. The following are the requisites of a valid payment. except

213. The following statements concerning payment are correct. except

217. Which of the following statements is correct?

227. Where shall payment of an obligation be made?

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

237. Who has the right to application of payments?

238. Which of the following statements is correct?

241. Which of the following statements is correct?

245. Who shall shoulder the expenses of a valid consignation?

250. Which of the following statements is correct?

254. It is a mode of extinguishing obligation which is an act of liberality, by virtue of which,

255. What is the nature of condonation or remission?

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

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

266. The following statements concerning compensation are correct, except

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

276. The following statements concerning novation are correct, except

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