2ND QUIZ FOR MIDTERM
1. Danna obtained a loan of P100,000 from Carlos.
The loan is secured by a mortgage of Danna’s lot
payable at the end of the year. It also bears
interest at 1% per month which by stipulation was
to be paid by Danna to Theodore, a creditor of
Carlos, who agreed to the stipulation in his favor.
Six months before due date, Danna and Carlos
agreed that Danna would instead be giving a
particular car worth P100,000. Theodore was not
aware of the novation.
The correct answer is:
Theodore may validly demand the payment of
interest from Danna for the next six months
2. Dylan is indebted to Camila for P20,000. The
debt is evidenced by a promissory note signed by
Dylan as maker and Gabriel as guarantor. On due
date, Camila made a phone call to Dylan and
informed the latter that she was condoning the
debt. Dylan expressed his gratitude to Camila.
The correct answer is:
Neither the loan nor the guaranty is extinguished
3. A, B and C are joint makers of a promissory note
for P30,000, payable to the order of X. X indorsed
the note to Y, and Y to Z. Z indorsed the note to A.
Such indorsement by Z to A produced which of the
following effect?
The correct answer is:
Only P10,000 representing the share of A is
extinguished. A, as the new creditor in his own
right, can go after B and C to collect P10,000 each.
4. Under the provisions on obligations, dation in
payment and the following are special forms of
payment, except
The correct answer is:
Payment in escrow
5. In an obligation to give, the debtor may compel
the creditor to accept a different one provided it
The correct answer is:
No, the debtor cannot compel the creditor to
accept a thing that is different from that which is
due
6. Consignation may be made even without
previous tender of payment in the following cases,
except
The correct answer is:
When the creditor is incapacitated but the debtor
knows that the creditor has a legal representative
to receive payment
7. An obligation may be modified by
The correct answer is:
All of the choices
8.The loss of a determinate thing through
fortuitous event will not extinguish an obligation,
except
The correct answer is:
When the debt proceeds from a criminal offense
and the creditor is in mora accipiendi
9. Payment made to the creditor by the debtor
after the latter has been judicially ordered to
retain the debt shall be valid.
The correct answer is 'False'.
10. The following properties are involved in a
condonation
I. Immovable property
II. Movable property whose value exceeds
P5,000
III. Movable property whose value is
P5,000 or below
The condonation that must be in a public
instrument together with the acceptance thereof
in order that it may be valid is one that involves
The correct answer is:
I only
11. Delilah owes Carter P50,000 which is due on
March 31. On the other hand, Carter owes Delilah
P15,000 which is due on March 15. On March 18,
Carter assigned his credit right Taylor with Delilah
giving her consent unconditionally. On March 31,
how much may Taylor collect from Delilah?
The correct answer is:
P50,000
12. The following are characteristics of payment
by cession, except
The correct answer is:
The debtor may or may not be insolvent
13. Although not complete, payment shall
extinguish the obligation if the obligation has been
substantially performed in good faith.
The correct answer is 'True'.
14. 1M is the maker of a promissory note payable
to the order of P, payee. G signed the note as
guarantor of the debt. P indorses the note to A, A
to B, and B to C. On the date of maturity, C
indorsed the note to G, such indorsement
extinguished
The correct answer is:
Only the guaranty
15. Aside from the person in whose favor the
obligation has been constituted, to whom shall
payment be made?
The correct answer is:
To all the choices, whichever is applicable under
the circumstances
16. Expromission is different from delegacion in
that in expromission
The correct answer is:
The substitution of the original debtor by a new
one is initiated by a third person
17. The delivery of promissory notes payable to
order, bills of exchange and other mercantile
documents shall produce the effect of payment
when they
The correct answer is:
Have been cashed
18. Dawson owes Cecilia P20,000 payable on or
before October 31, 2020. Cecilia owes Dawson
P20,000 due on October 1, 2020. On October 1,
2020
The correct answer is:
Only Dawson may claim compensation
19. Danilo owed Crisanto P40,000. Tadeo
informed Danilo that he would pay the debt to
Crisanto and that Danilo need not reimburse him.
However, Danilo did not consent to the payment
and the non-reimbursement. Nonetheless,
Crisanto accepted the payment from Tadeo.
Which is correct?
The correct answer is:
The payment is valid with respect to Crisanto.
20. Daniel is obliged to deliver 20 sacks of rice to
Charlotte. Daniel intends to get 20 sacks of rice for
delivery from his stock of 300 sacks of rice stored
in his warehouse. Before due date, Daniel’s
warehouse was razed in afire together with all the
rice stored therein. The warehouse and the things
stored therein are covered by insurance.
The correct answer is:
Daniel’s obligation to give 20 sacks or rice to
Charlotte is not extinguished because he can get
20 sacks of rice from other sources for delivery to
Charlotte.
21. Danielle is indebted to Charlotte in the amount
of P200,000. The debt is secured by a chattel
mortgage of Danielle’s car and guaranty of Grace
who signed together with Danielle a promissory
note for the debt. Grace pays Charlotte P200,000
without the knowledge of Danielle. Which is
correct?
The correct answer is:
Grace can collect P200,000 from Danielle. If
Danielle cannot pay, Grace can foreclose the
chattel mortgage.
22. 2Compensation is different from merger
because in compensation
The correct answer is:
There are two debtors and two creditors
23. Legal compensation requires that each one of
the obligors be bound principally and that he be at
the same time a principal creditor of the other. In
addition, it is also necessary that the following
requirements be present, except
The correct answer is:
That both debts have the same due date
24. Divina owed Candida the following debts:
- P12,000 due on September 1;
- P12,000 due on September 5;
- P12,000 due on September 15 (secured by a
pledge of Divina’s ring); and
- P12,000 due on September 25.
On September 22, Divina wanted to tender
payment to Candida but she had only P12,000. As
of such date, none of the debts had been paid. In
this case, Divina may apply payment to:
The correct answer is:
To any of the debts due on September 1,
September 5, and September 15, since they have
all become due as of September 22
Chuck’s refusal to accept the check is justified
because a check is not legal tender.
30. Divine is obliged to give C P500,000 if Cora
graduates as an honor student in his Bachelor of
Science in Accountancy degree. The parties agreed
that Divine would give Cora a brand-new Toyota
Vios car instead of P500,000. The obligation of
Divine to give Cora a Toyota Vios car is
The correct answer is:
Subject to the condition that Cora must graduate
as an honor student in his BSA degree

25. Consignation will extinguish an obligation

upon the declaration by the court that
consignation has been properly made.
The correct answer is 'True'.

26. In dation in payment, there should be two or

more creditors, while in payment by cession,
plurality of creditors is not required.
The correct answer is 'False'.

27. David obtained a loan of P100,000 from

Christopher. The debt which is payable in 10 equal
monthly installments is secured by a real mortgage
on David’s lot. David paid the first installment of
P10,000 on due date. Theodore, a third person,
paid C P100,000 without the knowledge of David
and believing that the amount owed by David was
still P100,000. Which is correct?
The correct answer is:
Theodore can recover P90,000 from David. If
David cannot pay, Theodore cannot foreclose the
mortgage

28. If the creditor to whom tender of payment has

been made refuses without just cause to accept it,
the debtor shall be released from responsibility by
the consignation of the thing or sum due.
The correct answer is 'True'

29. Dolly owes Chuck P50,000. On due date, Dolly

tendered payment in the form of certified check
amounting to P50,000. Chuck refused to accept
the check and demanded that he be paid in bills
The correct answer is: