REVIEW AS ONE: Law on Obligations - Midterms AY 2022-2023

Coverage
1. Chapter 1 - General Provisions
2. Chapter 2 - Nature and Effect of Obligations
3. Chapter 3 - Different Kinds of Obligations
4. Chapter 4 - Extinguishment of Obligations
a. 1231 - Causes
b. Section 1. Payment or Performance
c. Section 2. Loss of the Thing Due
d. Section 3. Condonation or Remission of Debt

General Provisions

1. In fear of reprisals in their area, Kyle left for Hong Kong to migrate, leaving his fishpond. Ton
seeing the fishes ready for harvest, harvested the same, and sold them to Winnie. For the
purpose of preparing the fish pond for the next batch, Ton borrowed money from ABC Bank.
Which of the following is incorrect?

a. The juridical relation created between Kyle and Ton is negotiorum gestio
b. Upon return of Kyle, Ton would be liable to account for the sales he made to Winnie.
c. Kyle is bound by the contract of loan entered into by Ton with ABC Bank.
d. Kyle is known as the gestor, or negotiorum gestor.
Explanation: The business of Kyle was abandoned and Ton voluntarily took over the
same. Ton would be known as the gestor.
2. While driving recklessly, W hit X, a pedestrian, and injured Y, his passenger. The taxi driven by
W was owned by Z. W can be held liable to X based on:
a. Quasi-Delict W will be liable under quasi-delict for his negligent act
b. Delict that resulted in damage to X. His act can likewise be a
c. Neither A nor B ground for filing reckless imprudence resulting to physical
d. Both A and B injuries which is punishable under the Revised Penal Code.
3. While driving recklessly, W hit X, a pedestrian, and injured Y, his passenger. The taxi driven by
W was owned by Z. Y can sue W based on:
a. Contract Y can sue W under delict or quasi-delict but not contract.
b. Quasi-Delict Since the contract of carriage is between Y, the passenger,
c. Neither A nor B and Z, the employer-owner.
d. Both A and B
4. It is the juridical relation resulting from lawful, voluntary, and unilateral acts by virtue of which
the parties become bound to each other to the end that no one shall be unjustly enriched or
benefited at the expense of another.
a. Agreement
b. Vinculum juris
c. Contracts
d. Quasi-Contracts
REVIEW AS ONE: Law on Obligations - Midterms AY 2022-2023

5. This takes place when something is received when there is no right to demand it, and it was
unduly delivered through mistake.
a. Solutio Indebiti
b. Negotiorum Gestio
c. Vinculum juris
d. Prestation

Nature and Effect of Obligations

6. This happens when the creditor makes a demand and the obligor fails to deliver the thing.
a. Negligence
b. Mora solvendi
c. Mora accipiendi
d. Compensatio morae
7. It is an occurrence or happening which could not be foreseen or even if foreseen is inevitable.
a. Fortuitous events
b. Condition
c. Period
d. Date and time
8. It is committed in the performance of an obligation already existing because of a contract.
a. Diligence
b. Casual Fraud
c. Negligence
d. Incidental Fraud
9. It makes the usurers criminally liable if the interest charged on loans are more that the limit
prescribed by law.
a. Force Majeure
b. Usury Law
c. Simple Loan
d. Usury
10. These are the things included with the principal for the latter’s embellishment, better use, or
completion.
a. Conditional
b. Accessions
c. Simple
d. Accessories

Different Kinds of Obligations

11. X promised to deliver his car to Y if the latter would draw a square that is at the same time a
circle. In this case,
a. The obligation is void for containing an impossible condition
b. The obligation will be treated as a pure obligation
c. The resolutory condition is deemed not written
d. The condition may be disregarded since it is negative
To draw a square that is at the same time a circle is an impossible condition, in the nature of
things, it cannot be done. So the obligation is void, as stipulated in Art. 1183
REVIEW AS ONE: Law on Obligations - Midterms AY 2022-2023

12. On June of 2020, S promised to sell to B his house and lot, rented by another, should B pass
the CPA Board Exams. B took and passed the May 2021 CPA Board Exams. Who would be
entitled to the rent from the time S promised to sell to B until the happening of the suspensive
condition?
a. B, since the happening of the condition retroacts to the day of the constitution of the
obligation.
b. S, because he is the owner of the house and lot during the time mentioned.
c. B, because the obligation is unilateral and S is required to appropriate the rents in favor
of Rochelle.
d. S, because the obligation is reciprocal, thus the fruits are deemed mutually
compensated.
The effect of the happening of the suspensive condition retroacts to the day the
obligation was constituted. But as to fruits, they are deemed mutually compensated in
reciprocal obligations.

13. D promised to deliver to C his car worth P250,000, his laptop worth P80,000, or his diamond
ring worth P40,000. All things were lost in the order they were mentioned through the fault of D.
In this case,
a. D is liable for P250,000, the value of the car
b. D is liable for P80,000, the value of the laptop
c. D is liable for P40,000, the value of the ring
d. D is liable for the value of whatever C chooses
In alternative obligations when the debtor has the right of choice, the loss of all the
prestation through his fault would make him liable for the value of the last thing that was
lost. The presumption is that the last thing lost was really his choice, but since it was
lost too, he will be required to pay for its value plus damages.
14. D promised to deliver to C his car worth P250,000, his laptop worth P80,000, or his diamond
ring worth P40,000. The right of choice was expressly granted to C. All things were lost in the
order they were mentioned through the fault of D. Which of the following is correct?
a. D is liable for P250,000, the value of the car
b. D is liable for P80,000, the value of the laptop
c. D is liable for P40,000, the value of the ring
d. D is liable for the value of whatever C chooses
In alternative obligations where the creditor was expressly granted the right of choice
and all the things were lost through the fault of the debtor, the right of choice of the
creditor is not lost, but since all the things are lost, he can only choose the equivalent
value of the prestation of his choice plus damages.
15. When the debtor binds himself to pay when his means permit him to do so, the obligation is:
a. Conditional
b. Pure
c. Simple
d. With a Period
REVIEW AS ONE: Law on Obligations - Midterms AY 2022-2023

16. If the obligation of the debtor is "I will pay you my debt after I have arrived from abroad," this
is
a. Unenforceable
b. With a Period
c. Void
d. Conditional
17. It is a mode of extinguishing an obligation when two persons in their own right are creditors
of each other.
a. Confusion
b. Reformation
c. Compensation
d. Novation
18. It consists in the delivery of the thing or the rendition (rendering) of the service which is the
object of the obligation.
a. Partial Payment
b. Interest
c. Payment
d. Claim
19. X, Y, and Z are jointly in debt of P60,000 to A and B who are joint creditors. How much can B
collect from Z?
a. P30,000
b. P60,000
c. P20,000
d. P12,000
B can collect from Z P30,000 because A and B are joint creditors, B can only collect his
share of the entire obligation. Since Z is one of the solidary debtors then Z is liable to B
not only his share but also the shares of his other co-debtors.
20. An accessory undertaking attached to an obligation to assume greater liability in case of
breach.
a. Accessory Obligation
b. Penal Clause
c. Obligation with a Penal Clause
d. Principal Obligation
Extinguishment of Obligations
21. The following are causes of extinguishment of obligations, except:
a. Fulfillment of a resolutory condition
b. Condonation
c. Loss of the thing due with the fault of the debtor
d. Confusion of the rights of creditor and debtor
22. Abegail is obliged to pay Angel P15,000; Abegail paid P12,000. Is there a payment?
a. Yes, because Abegail has given a payment of P12,000.
b. Yes, because there is a performance of delivering money.
c. No, because Abegail did not give the complete amount to be rendered.
REVIEW AS ONE: Law on Obligations - Midterms AY 2022-2023

d. No, because Angel demands P14,000.

In extinguishment of obligations under payment/performance, a debt is not considered
paid unless the thing or service in which obligations consists has been completely
delivered or rendered, as the case may be.(ART.1233)
23. Which of the following is true regarding inflation?
I. Cause of a drop in the value of money
II. Sharp sudden increase of money or credit or both without corresponding increase in
business transactions
III. Resulting in a decline of the general price level
a. I only
b. I and II
c. I, II, and III
d. None of these
24. How must the payment be made?
I. There must be delivery of the thing
II. When the obligation has been irregularly complied with by the debtor
III. Rendition of the service that was contemplated
a. I and III
b. I only
c. I, II, and III
d. None of these
25. Payment of debts in money must be made in the currency which is legal tender in the
Philippines.
a. Legal tender, concept
b. Dation in payment
c. Medium of payment
d. Inflation and deflation
26. When only a part of the obligation or only the accessory obligation is remitted.
a. Partial
b. Total
c. Express
d. Implied
27. When the total obligation (both principal and accessory obligations) is remitted
a. Express
b. Total
c. Implied
d. Condonation
28. It will become effective upon death.
a. Contrary evidence
b. Legitime
c. Mortis Causa
d. Compulsory heirs
REVIEW AS ONE: Law on Obligations - Midterms AY 2022-2023

29. Part of the testator’s property which cannot be disposed of.

a. Contrary evidence
b. Remission of Debt
c. Extent of remission
d. Legitime

30. Sam promised to make and deliver a particular sculpture for Seb. Without Sam’s fault and
after actually finishing the art, a burglar entered Sam’s house that night and stole the sculpture.
Is the obligation still in Sam? Why?
a. Sam here now does not have any obligation
b. The obligation is still in Sam
c. The Obligation is in Seb
d. None of the following
Because Sam’s obligation has been extinguished by the thing loss.

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