Republic of the Philippines

BATANGAS STATE UNIVERSITY-LEMERY

Rajah Matanda Street,
Brgy. BagongSikat, Lemery,Batangas

COLLEGE OF ACCOUNTANCY, BUSINESS and ECONOMICS

Business Administration Department

Name: Date:
Course: Rating:
MIDTERM EXAMINATION
( LAW ON OBLIGATIONS AND CONTRACTS)
General Direction: Be Honest
Even if Others
Are NOT
WILL NOT And
CANNOT
For your eyes only, God is watching us from a distance. He Knows our motives and intent.

Specific Direction: Avoid using your cellphone. Texting and answering phone calls are strictly
prohibited. Refrain from any form of cheating, copying, searching in google, and messaging or
texting with your classmate. Non-avoidance means automatic failing grade on this major exam.
Explain the cases below with legal basis from the Law on Obligations and Contracts (Oblicon)
that you have recited in our online synchronous Law class. Answer each question.

A. ESSAY:
1. Illustrate an obligation subject to:
(a) Suspensive Condition
(b) Resolutory Condition
2. Give two (2) cases when the conditional obligation is valid although the condition
depends entirely upon the will of the debtor. Explain.
3. May an obligor be liable under an obligation subject to a suspensive condition
although the condition has not yet been fulfilled? Explain.

4. In obligation to give a parcel of land subject to a suspensive condition, who is entitled

to the fruits that accrued during the pendency of the condition once said condition is
fulfilled?

5. State the rules in case the thing to be delivered:

(a) is lost with the debtor’s fault; without his fault;
(b) Deteriorates with the debtor’s fault; without his fault
B. Multiple Choice Questions (MCQ)
1. It is a juridical relation whereby a person may demand from another the observance of a
determinative conduct, and in case of breach, may demand satisfaction from the assets of
the latter.
a. Natural obligations
b. Moral obligations
c. Civil obligations
d. Contracts

2. Which of the following can never be enforced in court?

a. Obligation based on positive law
b. Obligation based on conscience
c. Obligation based on voluntariness
d. Obligation based on contracts

3. Which is not an element of an obligation?

a. Vinculum juris
b. Obligee
c. Prestation
d. Contract

4. It is an efficient cause by which the debtor is bound to perform a prestation.

a. Vinculum juris
b. Obligee
c. Prestation
d. Contract

5. Which is not a way by which juridical tie is established?

a. Statute
b. Bilateral acts
c. Unilateral acts
d. Acts of god

6. It is he who in whose favor the obligation is constituted, established or created.

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

7. It is the one in whom it is incumbent to fulfill the prestation.

a. Active subject
b. Passive subject
c. Obligee
d. Creditor

8. Which of the following is a active aspect of an obligation?

a. Right
b. Prestation
c. Debt
d. Juridical tie

9. The object of an obligation must NOT be:

a. Licit
b. Possible
c. Indeterminate
d. Determinable

10. Which is generally not required to make an obligation binding?

a. Form
b. Legality
c. Possibility
d. Determinability

11. Which is not always required to make an obligation binding?

a. Possibility
b. Determinability
c. Pecuniary value
d. Juridical relation

12. Which conduct is not expected of the obligor?

a. Giving
b. Doing
c. Not doing
d. Not giving

13. Which of the following is an obligation not to do?

a. Obligation of seller in a contract of sale
b. Obligation of landowner in easement of way
c. Obligation of painter in a contract of service
d. Obligation of depositary in a contract of deposit

14. The law on nuisance creates an obligation…

a. To do
b. Not to do
c. To give
d. Not to give

15. Which characteristic of a valid prestation is also called “criteria”?

a. Form
b. Legality
c. Possibility
d. Determinability

16. Creditor can retain thing delivered voluntarily by the debtor even though, under the
law, the obligation cannot be enforced.
a. Civil obligation
b. Moral obligation
c. Natural obligation
d. Legal obligation

17. Which of the following does not arise from natural law?
a. Civil obligation
b. Moral obligation
c. Natural obligation
d. Conscientious obligation

18. Which of the following is a negative obligation?

a. Obligation of seller in a contract of sale
b. Obligation of landowner in easement of way
c. Obligation of painter in a contract of service
d. Obligation of depositary in a contract of deposit

19. Which of the following is a real obligation?

a. To do
b. To give
c. Not to do

20. “I promise to give you one of my cars.” What kind of object is this?
a. Generic
b. Specific
c. Determinate
d. Limited generic

21. Which of the following is an obligation established by agreement of the parties?

a. Unilateral obligation
b. Bilateral obligation
c. Conventional
d. Statutory

22. Which of the following is a divisible obligation?

a. To deliver a car
b. To not kill any one
c. To pay one million pesos
d. To not compete with employer after retirement

23. “I will pay you 1 million for the car I bought from you.”
a. Pure obligation
b. Conditional obligation
c. Joint obligation
d. Solidary obligation

24. This obligation is characterized by being immediately due and by lack of burden of
time or condition.
a. Pure obligation
b. Conditional obligation
c. Joint obligation
d. Solidary obligation

25. A debtor is liable for the whole obligation although he has other co-debtors.
a. Pure obligation
b. Conditional obligation
c. Joint obligation
d. Solidary obligation

26. Who is entitled to reimbursement for other co-parties’ share in the contract?
a. Solidary co-debtor
b. Solidary co-creditor
c. Joint co-debtor
d. Joint co-creditor

27. This obligation gives the obligor an option to perform only one of several prestations.
a. Simple obligation
b. Alternative obligation
c. Facultative obligation
d. Obligation with a penalty

28. The general rule here is that interest stipulated in the agreement is generally substitute
for fine. If parties agree, interest stipulated and fine should be paid.
a. Simple obligation
b. Alternative obligation
c. Facultative obligation
d. Obligation with a penalty

29. Husband has an obligation to support his wife and children.

a. Obligation ex lege
b. Obligation ex contractu
c. Obligation ex malificio
d. Obligation ex quasi-delicto

30. Which shows a combination of legal and contractual obligations?

a. Husband and wife
b. Bus driver and bus company
c. Murderer and victim
d. Mother and son

31. What do you call the time when an obligation is created?

a. Perfection
b. Extinguishment
c. Fulfillment
d. Meeting of the minds

32. Which of the following does not the immediate demandability of an obligation?
a. Want of period or term
b. Suspensive condition
c. Period
d. Term

33. Which does not characterize an obligation ex lege?

a. It does not need the consent of the obligor.
b. “Lege” itself should be the creator of the obligation.
c. Compensation is generally a option to extinguish the obligation.
d. It must be expressly set forth in the law creating it and not merely presumed.

34. This obligation is perfected from the time the minds of the parties meet.
a. Obligation ex lege
b. Obligation ex contractu
c. Obligation ex malificio
d. Obligation ex quasi-delicto

35. What governs obligations created by law?

a. The Civil Code only
b. The law creating them only
c. The Civil Code in a suppletory character
d. The law creating them in a suppletory character

36. What does compliance in good faith mean?

a. Contract is law between the contracting parties.
b. Parties must abide by the terms and conditions of the contract.
c. Compliance with a contract cannot be made dependent on the will of only one of the parties.
d. A party cannot cancel or annul the contract without the consent of the other party or the order
of the court.

37. A party cannot evade obligations under the contract. Which is NOT true?
a. Evasion is allowed if provided in the contract.
b. Evasion is allowed is agreed by the parties.
c. Evasion is never allowed.
d. Evasion is illegal.

38. To which limitation to the freedom to contract does “protection of women” belong?
a. Law
b. Morals
c. Good customs
d. Public order
e. Public policy

39. TRUE OR FALSE: When penalty in case of breach of obligation is unconscionably

high, the court can only convince the parties to reduce it.

40. X and Y entered into an agreement whereby X would pay Y 2000 pesos per month so
that Y would take all necessary care of X’s house while he’s on vacation in the US. One
night, the house of Y caught fire and X saved Y’s car, refrigerator, TV, etc. What is the
source of X’s obligation to Y?
a. Law
b. Contracts
c. Quasi-contracts
d. Delicts
e. Quasi-delicts

41. What are characteristics common to mistake in payment and unauthorized

management?
a. Lawful, voluntary and unilateral
b. Unlawful, involuntary and multilateral
c. Lawful, voluntary and bilateral
d. Unlawful, involuntary and unilateral

42. What source of obligation is presumptive consent present in?

a. Law
b. Contracts
c. Quasi-contracts
d. Delicts
e. Quasi-delicts

43. What is another term for negotiorum gestio?

a. Mistake in payment
b. Inofficious manager
c. Unjust enrichment
d. Negotiable gesture

44. What is another term for solutio indebiti?

a. Unauthorized management
b. Inofficious manager
c. Unjust enrichment
d. Solution to the debt

45. Jane told John, “If you do something great to me, I will have sex with you.” John who
has been waiting for 10 years to have Jane in bed, saw a chance when he passed by Jane’s
house one night and he saw that watering is coming out of the front door. It would seem
that Jane went out to the movies but forgot to shut the faucet in her bathtub. John broke
the door and turned off the faucet.

a. TRUE OR FALSE: John can demand payment from Jane for negotiorum gestio.
b. TRUE OR FALSE: John can demand to have sex with Jane for what he has done.
46. Which of the following does not characterize negotiorum gestio?
a. The gestor undertook a risky operation which the owner was not accustomed to embark upon.
b. He did not prefer his own interest to that of the owner.

c. He did not fail to return the property after demand from the owner.
d. He did not assume the management in bad faith.

47. Which is not an obligation of a gestor in negotiorum gestio?

a. To render an account of costs and expenses
b. To return the property to the owner upon demand
c. To pay any load he incurred not in the interest of management
d. To pay owner for damages necessarily incurred in the management

48. TRUE OR FALSE: Every person criminally liable is civilly liable.

49. Which of the following is not an element of an obligation quasi-delict?

a. Act or omission
b. Fault or negligence
c. Damage or injury
d. Cause and effect relationship between fault and damage
e. Pre-existing contractual relation between the parties

50. A person civilly liable is not liable for:

a. Restitution
b. Imprisonment
c. Reparation for damages cause
d. Indemnity for consequential damages

Good Luck!

Ignorantia Legis Non Excusat!

(Ignorance of the Law Excuses No One)

Prepared By:

DR. JESSE NELSON P. LLANA, JD (LLB)

Law Instructor

Checked and Verified By: Noted By:

LOVILET C. MOLO, CPA,MBA Assoc.Prof. SANDY M. GONZALES

Department Head, CABE Dean of Colleges