SQE Law

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Junior Philippine Institute of Accountants Manila

E500, 5/F Main Bldg., A. Mabini Campus, Anonas St., Sta. Mesa, Manila
Special Qualifying Examination

Reviewer
Examination: Law
Subject Covered: Law 20013: Law on Obligations and Contracts
1. It is the spontaneous product of the soil and the young and other products of
animals.
a) Industrial fruits
b) Natural fruits
c) Civil fruits
d) Generic fruits
2. Obligations are derived from:

a) Law
b) Contracts
c) Crimes or acts punishable by law
d) All of the above
3. Ali’s Obligation to Eloi is to deliver a cellphone worth P15,000 on September

30, 2022. A week before the maturity date, Ali was ordered by his superior to
go to Palawan to confer with the company’s client. Since Ali had no time to
buy the cellphone, she offered to give Eloi the amount of P15,000, so that Eloi
could buy the cellphone and Eloi accepted the offer. The obligation of Ali to
deliver a cellphone to Eloi is extinguished by:
a) Novation
b) Cession
c) Compensation
d) Merger of rights
4. It is an event which cannot be foreseen, or which, though foreseen, is

inevitable.
a) Fortuitous event
b) Usury
c) Ordinary events
d) Extra-ordinary events
5. It is a juridical relation whereby a person may demand from another the

observance of the terminative conduct and in case of breach made demand
satisfaction from the assets of the latter.
a) Contracts
b) Moral Obligation
c) Natural Obligation
d) Civil Obligation
6. It is a delay on the part of the debtor in fulfilling his obligation.

a) Mora solvendi
b) Mora acipiendi
c) Compensation morae
d) Ordinary delay
7. “When you are at a legal age, I promise to give you my Cristian Dior bag in
Black”. What kind of obligation is this?
a) Generic
b) Particular
c) Determinate
d) Indeterminate
8. As a general rule, who has the right to determine the choice of obligation
among various prestations on an Alternative Obligation?
a) Creditor
b) Debtor
c) Both a and b
d) None of the above
9. Which of the following is not included in the civil liabilities arising from crime
or delict?
a) Reparation
b) Imprisonment
c) Restitution
d) Indemnification of damages
10. Vince, Kath, and James are jointly liable to Pat for P30,000. To whom Pat can
demand for the whole payment of P30,000?
a) Vince
b) Kath
c) James
11. It is a voluntary administration of the property of another without his consent.

a) Negotiorum gestio
b) Solutio indebiti
c) Quasi-contract
d) Quasi-delicts
12. Unless the law or the stipulations of the parties require another standard of
care, every person obliged to give something is also obliged to take care of it
with:
a) Extraordinary diligence
b) Diligence of a father of a good family
c) Diligence of a good father of a family
d) Diligence of a good father of a good family
13. On August 31, 2022, Donny obliged himself to give Daniel P2,000,000 if Daniel
will marry Kathryn on or before January 31, 2023. The condition of the
obligation is a:
a) Joint condition
b) Possible condition
c) Negative condition
d) Positive condition
14. It is a way of extinguishment of obligation in the meeting in one (1) person of

the characters of creditor and debtor with respect to the same obligation.
a) Confusion
b) Merger of Rights
c) Novation
d) Both a and b
15. Which of the following is an indivisible obligation?

a) To pay a loan obligation of P20,000 in 4 equal monthly installations
b) To hunt for a Philippine Eagle with a payment of P300,000
c) To give a speech for a graduation rite.
d) To lecture for 6 Sundays about Law on Obligations and Contracts.
16. The creditor has a right to the fruits of the thing from the time:
a) The thing and its fruits have actually been delivered.
b) The contract is perfected.
c) The obligation to deliver the thing arises.
d) The payment of the price of the thing and its fruits has been made.
17. It is one that is attached to a principal obligation, and therefore, cannot stand
alone.
a) Accessory obligation
b) Principal obligation
c) Divisible obligation
d) Positive obligation
18. The delivery and transmission of ownership of a thing by the debtor to the
creditor as an accepted equivalent of the performance is known as:
a) Payment by cession
b) Dation in payment
c) Application of payment
d) Consignation
19. These are the essential requisites of an obligation except:

a) Passive subject
b) Efficient cause
c) Condition
d) Prestation
20. Kyla, an agent of Kiel, owes Belle P300,000. Belle, on the other hand, owes
Kiel, P300,000. Both debts are due as of August 31, 2022.
a) Kiel may claim legal compensation
b) Kyla may claim legal compensation
c) Belle may claim legal compensation
d) Neither Kyla, Kiel, nor Belle may claim legal compensation
21. Refers to meeting all the legal requirements and limitations for the type of
agreement involved and are, therefore, legally binding and enforceable
a) Morals
b) Valid contracts
c) Public order
d) Public policy
22. This is the act of deliberately deceiving others, by feigning or pretending by

agreement, the appearance of a contract that is either non-existent or
concealed.
a) Incidental fraud
b) Simulation of a contract
c) Undue influence
d) Legal claim
23. It is the essential reason or purpose that the contracting parties have in view
at the time of entering into the contract.
a) Cause
b) Contract
c) Reformation
d) Termination
24. When remedy allowed by law by means of which a written instrument is

amended or rectified so as to express or conform to the real agreement or
intention of the parties when by reason of mistake, fraud, inequitable conduct,
or accident, the instrument fails to express such agreement or intention.
a) Cause
b) Contract
c) Reformation
d) Termination
25. These are the kinds of defective contracts except:

a) Voidable contracts
b) Unenforceable contracts
c) Recissible contracts
d) Legal contracts
26. Contracts validly agreed upon may be rescinded in the cases established by
law
a) Article 1379
b) Article 1380
c) Article 1381
d) Article 1382
27. The remedy granted by law to the contracting parties and sometimes even to
third persons in order to secure reparation of damages caused them by a valid
contract, by means of the restoration of things to their condition in which they
were prior to the celebration of said contract.
a) Rescission
b) Contracts
c) Cause
d) Morals
28. Cannot be sued upon or enforced unless they are ratified.

a) Rescissible contracts
b) Voidable contracts
c) Unenforceable contracts
d) Void or inexistent contracts
29. These contracts are valid as all the essential requisites of a contract exist but
by reason of economic injury or damage to one of the parties of to the third
person.
30. These contracts have no effect at all and cannot be ratified.

31. Contracts that are also valid until annulled unless there has been ratification.
32. This means that one voluntarily adopts or approves some defective or
unauthorized act or contract which, without his subsequent approval or
consent, would not be binding on him
a) Annulment
b) Ratification
c) Remedy
d) Voidable contract
33. A person who disappears from his domicile, his whereabouts being unknown,
without leaving an agent to administer his property.
a) Creditor
b) Lessor
c) Absentee
d) Debtor
34. The act of disposition by the testator in separating from the inheritance for
definite purposes, things, rights, or a definite portion of his property.
a) Obligation
b) Contracts
c) Legacy
d) Payment
35. A remedy provided by law, for the reason of public interest, for the declaration
of the inefficiency of a contract based on a defect or vice in the consent of one
of the contracting parties in order to restore them to their original position in
which they were before the contract was executed.
a) Legacy
b) Payment
c) Contract
d) Annulment
36. The false notion of a thing or a fact material to the contract.

a) Annulment
b) Mistake
c) Absentee
d) Fraud
37. This is the kind of ratification where it is manifested in words or in writing.

a) Implicit or tacit
b) Express
c) Requisite
d) Unilateral act
38. Refers to when entered into in the name of another person by one who has
been given no authority or legal representation or who has acted beyond his
powers.
a) Unauthorized contracts
c) Rescissible contracts
d) Unenforceable contracts
39. Contracts that cannot be enforced or given effect in a court of law or sued
upon by reason of certain defects provided by law until and unless they are
ratified according to law.
a) Unauthorized contracts
c) Rescissible contracts
d) Unenforceable contracts
40. A mistake of fact that is common to both parties of the instrument which
causes the failure of the instrument to express its true intention.
a) Unilateral mistake
b) Common mistake
c) Mutual mistake
d) Mistake or error
41. Popszie owes Starstuff P12,300.00 with Mhonay as guarantor. At the same
time, Starstuff is a debtor to Popszie for P7,000.00. Popszie is found to be
insolvent when both debts are already due. To whom can Starstuff collect
money?
a) To Mhonay for P12,300.00 because a guarantor can set up compensation as regards
what the creditor owes the principal debtor
b) To Mhonay for P7,000.00
c) To Mhonay for P5,300.00
d) Starstuff is not entitled to collect anything from Mhonay because Popszie is insolvent
42. Kags, Suga, and Tooru owe P150,000 to Kenma. How much can Kenma collect
from Tooru?
a) P150,000
b) P20,000
c) P75,000
d) P50,000
43. Kags, Suga, and Tooru owe P180,000 to Kenma severally. How much can
Kenma collect from Kags to extinguish the obligation?
a) P180,000
b) P20,000
c) P60,000
d) P90,000
44. Nino owes Christine P410,000 with Alex as guarantor. At the same time,
Christine owes Nino P5,000. Nino gets sued because he cannot pay, along with
that, how much can Alex be liable?
a) P400,000
b) P405,000
c) P410,000 because a guarantor can set up compensation as regards what the creditor
owes the principal debtor
d) Alex is not liable for anything else because Christine has already gotten her
compensation when she sued Nino.
45. Wanda and Vision proportionately owe Hulk and Nat, solidary creditors,
P450,000.00. Wanda and Vision share the debt in a 1:3 ratio, respectively.
Meanwhile, Hulk and Nat’s share in the credit is 70% and 30%, respectively.
How much may Nat collect from Wanda and Vision, respectively?
a) P225,000, P225,000
b) P135,000, P315,000
c) P112,500, P337,500
d) Nat may collect the whole P450,000 from either Wanda or Vision because she is a
solidary creditor.
46. Greenwich, Pizza Hut, and S&R are obliged to give Jollibee, McDonald’s, KFC,
and Chowking a sum of P69,000.00.
a) Jollibee may collect from Pizza Hut P69,000.
b) Jollibee may collect from Pizza Hut P17,250.
c) Jollibee may collect from Pizza Hut P23,000.
d) Jollibee may collect from Pizza Hut P5,750.
47. Greenwich, Pizza Hut, and S&R are obliged to give Jollibee, McDonald’s, KFC,
and Chowking a sum of P69,000.00. How much is KFC entitled to collect from
Greenwich and Pizza Hut?
a) P11,500
b) P17,250
c) P5,750
d) KFC cannot collect from just Greenwich and Pizza Hut
48. Raoul and Soleil are solidarily liable to Kajik for a total amount of P25,000
with a suspensive condition. The obligation is due on Soleil’s 17th birthday
and Kajik has made an action against Raoul. How much is Kajik entitled to
collect?
a) He is entitled to collect P25,000 from either Raoul or Soleil
b) He cannot collect anything because Soleil can put up the defense that it is her
birthday, and nobody should pay debts on their birthday.
c) He is entitled to collect only P12,500 from Raoul.
d) He is entitled to collect P25,000 from Raoul only.
49. Francis and Denice are indebted to Arcel and Louie for P60,000. Francis and
Denice have a respective debt-sharing ratio of 1:3 while Arcel and Louie have
a credit-sharing ratio of 2:3, respectively. How much may Arcel collect from
Francis if the debtors are joint debtors, while the creditors are joint creditors?
a) P15,000
b) P6,000
c) P3,000
d) P45,000
a credit-sharing ratio of 2:3, respectively. How much may Louie collect from
Francis if there is passive solidarity?
a) P36,000
b) P24,000
c) P60,000
d) P45,000
Denice if there is active solidarity?
a) P36,000
b) P24,000
c) P60,000
d) P45,000
Denice if there is mixed solidarity?
a) P36,000
b) P24,000
c) P60,000
d) P45,000
53. Marl borrowed P24,000 from Mae with Denise as guarantor. Subsequently,
Marl paid Mae P8,000 without knowing that there is a third person, Brix, who
paid Mae P24,000 for that debt. How much can Brix recover from such
payment, if there is any?
a) P24,000
b) P16,000
c) P8,000
d) P0
54. Jhem purchased 50 pieces of watermelons from Pochollo which is worth

P3,000. When Jhem reached home, she discovered that the invoice showed a
total amount due of P8,000 instead of P3,000. How much should she be
entitled to receive as a return?
a) P0 because she has already made the payment.
b) P8,000 and the contract must be rescinded.
c) P4,000
d) P5,000
55. Denden owes Kathleen P2,000 due on August 10, 2022. Kathleen owes
Denden the following debts:
P1,000 due on August 1;

P2,000 due on August 15;
On August 12, Kathleen assigned her right to Christine. Kathleen notified

Denden of the assignment but Denden did not give her consent thereto. How
much may Christine collect from Denden on August 10?
a) P3,000
b) P1,500
c) P2,000
d) P1,000
56. Red owes Blue P23,000 with Green as guarantor. Blue, on the other hand,
owes Red P6,000. Both debts are already due but Red is insolvent. How much
will compensation cost?
a) P23,000
b) P17,000
c) P0 because Red is insolvent.
57. Nescafe, Kopiko, Kalsada, and Starbucks owe BearBrand, Alaska, Angels, and
Lactum P100,000. How much may Alaska collect from Nescafe?
a) P6,250
b) P25,000
c) P100,000
d) P0
Lactum P100,000 as joint debtors and solidary creditors of each other. How
much may Angels collect from Kopiko?
a) P6,250
b) P25,000
c) P100,000
d) P0
Lactum P100,000 as solidary debtors and solidary creditors of each other.
How much may Kalsada collect from Angels?
a) P6,250
b) P25,000
c) P100,000
d) P0
Lactum P100,000 as solidary debtors and solidary creditors of each other.
How much may BearBrand collect from Kalsada?
a) P6,250
b) P25,000
c) P100,000
d) P0
Summary of Answers
1. B 31. B
2. D 32. B
3. C 33. C
4. A 34. C
5. D 35. D
6. A 36. B
7. C 37. B
8. B 38. A
9. B 39. D
10. D 40. C
11. A 41. C
12. B 42. D
13. D 43. A
14. D 44. B
15. C 45. C
16. C 46. D
17. A 47. A
18. B 48. C
19. C 49. B
20. D 50. A
21. B 51. D
22. B 52. C
23. A 53. B
24. C 54. D
25. D 55. D
26. B 56. B
27. A 57. A
28. C 58. B
29. A 59. D
30. D 60. C
Summary of Answers – Explained
1. (B) Refer to Art. 1164, examples of natural fruits are trees and plants on lands produced
without human intervention. Also, art 1164 states that the creditor has a right to the fruits
of the thing from the time the obligation to deliver it arises.
2. (D) According to Article 1157, Obligations arise from: (1) Law, (2) Contracts, (3) Quasi-
Contracts, (4) Acts or omissions punished by law, and (5) Quasi-delicts.
3. (C) Refer to Art. 1291, An obligation can be modified or extinguished by: (1) changing its
object or principal conditions, (2) Substituting the person of the debtor, and (3)
Subrogating a third person in the rights of the creditor. Therefore, Ali’s Obligation was
extinguished through Novation by paying Eloi P15,000 which has the same value as the
cellphone.
4. (A) Refer to Art. 1174, it is an event that cannot be foreseen, or which though foreseen,
is inevitable.
5. (D) Refer to Art 1156, Only civil obligations are enforceable in court when breached. It
does not cover natural obligations because these are obligations that cannot be enforced
in court being based merely on equity and natural law.
6. (A) Refer to Art 1169, Mora solvendi is the delay on the part of the debtor (to give or to
do), while Mora acipiendi is the delay on the part of the creditor to accept the performance
of the obligation; Compensatio Morae is the delay of the obligors in reciprocal obligation.
7. (C) Refer to Art. 1163, A thing is said to be specific or determinate particularly designated
or physically segregated others of the same class.
8. (B) Refer to Art. 1199, an alternative obligation is one wherein various prestations are due
but the performance of one of them is sufficient as determined by the choice which, as a
general rule, belongs to the debtor.
9. (B) Refer to Art. 1161, the scope of Civil Liability includes: (1) Restitution, (2) Reparation
for the damage caused, and (3) Indemnification for consequential damages.
10. (D) Refer to Art. 1207, Joint obligation or one where the whole obligation is to be paid or
fulfilled proportionately by the different debtors and/ or is to be demanded proportionately
by the different creditors. Since the debts are distinct and separate from each other, the
insolvency of one of the creditors shall not make the others liable. Pat can only demand
P10,000 from each debtors.
11. (A) It is the voluntary management of the property of affairs of another without the
knowledge or consent of the latter.
12. (B) Refer to Art. 1163, the phrase has been equated with ordinary care or that diligence
which an average (a reasonable prudent) person exercises over his own property.
13. (D) Refer to Art. 1182. A conditional obligation is one whose consequences are subject in
one way or another to the fulfillment of a condition. It has different kinds as to mode,
namely: (1) Positive Condition which means the condition consists in the performance of
an act; and (2) Negative Condition which means the condition consists in the omission of
an act.
14. (D) Refer to Art. 1275, the obligation is extinguished from the time the characters of
creditor and debtor are merged in the same person.
15. (C) It is the only indivisible obligation. A and D are divisible obligation while B has a legally
impossible condition. Therefore, letter C is the answer.
16. (C) Refer to Art. 1164, the creditor has a right to the fruits of the thing from the time the
obligation to deliver it arises. However, he shall acquire no real right over it until the same
has been delivered to him.
17. (A) Refer to Art. 1226, In obligations with a penal clause, the penalty shall substitute the
indemnity for damages and the payment of interest in case of non-compliance, if there is
no stipulation to the contrary. Nevertheless, damages shall be paid if the obligor refuses
to pay the penalty or is guilty of fraud in the fulfillment of the obligation. The penalty may
be enforced only when it is demandable in accordance with the provisions of this Code.
Accessory obligation is defined as one which is attached to a principal obligation, and
therefore, cannot stand alone.
18. (B) Refer to Art. 1245, Dation in payment whereby property is alienated to the creditor in
satisfaction of a debt in money, shall be governed by the law of sales.
19. (C) The essential requisites of an obligation are: Passive Subject (Debtor or Obligor),
Active Subject (Creditor or Obligee), Prestation or Object (Subject Matter of the obligation,
and Juridical or Legal tie (Efficient Cause).
20. (D) Refer to Art. 1278, compensation shall take place when two persons, in their own
right, are creditors and debtors of each other. Kyla, Kiel, and Belle are not creditors and
debtors of each other.
21. (B) A valid contract would include all contracts that are not void, voidable, or
unenforceable. A voidable contract provides the option to rescind by either party. At the
creation of the contract, it is valid but it could be voided in the future.
22. (B) According to Art. 1345, Simulation of a contract may be absolute or relative. The
former takes place when the parties do not intend to be bound at all; the latter, when the
parties conceal their true agreement.
23. (A) It must be true and licit. A contract with an illicit cause produces no effect whatsoever.
24. (C) As stated in Article 1359, when there having been a meeting of the minds of the
parties to a contract, their true intention is not expressed in the instrument purporting to
embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one
of the parties may ask for the reformation of the instrument to the end that such true
intention may be expressed.
25. (D) A, B, and C are correct. There are four kinds of defective contracts, namely 1) the
rescissible, (2) the voidable, (3) the unenforceable, and (4) the void. Legal contract is not
included so therefore, D is the answer.
26. (B) The rescission under Article 1380 is an equitable remedy granted by law to the
contracting parties and sometimes even to third persons in order to secure reparation of
damages caused them by a valid contract, by means of the restoration of things to their
condition prior to the celebration of said contract.
27. (A) It is where the contract is set aside and the parties are put back into the position in
which they were before the contract was made.
28. (C) According to Article 1403, the contracts are unenforceable, unless they are ratified so
the answer is letter C.
29. (A) Rescissible contracts are those validly agreed upon because all the essential elements
exist and, therefore, legally effective, but in the cases established by law, the remedy of
rescission is granted in the interest of equity.
30. (D) A void or inexistent contract is one which has no force and effect from the very
beginning. Therefore, it is as if it has never been entered into and cannot be validated
either by the passage of time or by ratification.
31. (B) A voidable contract is a formal agreement between two parties that may be rendered
unenforceable for any number of legal reasons, which may include: Failure by one or both
parties to disclose a material fact. A mistake, misrepresentation, or fraud. Undue influence

or duress.
32. (B) According to Article 1393, Ratification is an act or means by which efficacy is given to
a contract that suffers from a vice of curable nullity. It is an act of curing the defect of
lack or excess of the authority of the party who entered into the contract through another
without the latter's authorization.
33. (C) When a person disappears from his domicile, his whereabouts being unknown, and
without leaving an agent to administer his property, the judge, at the instance of an
interested party, a relative, or a friend, may appoint a person to represent him in all that
may be necessary.
34. (C) According to Article 1430, When a will is declared void because it has not been
executed in accordance with the formalities required by law, but one of the intestate heirs,
after the settlement of the debts of the deceased, pays a legacy in compliance with a
clause in the defective will, the payment is effective and irrevocable. Therefore, C is the
answer.
35. (D) D is the answer because it is one filed where consent is vitiated by lack of legal
capacity of one of the contracting parties, or by mistake, violence, intimidation, undue
influence or fraud. By its very nature, annulment contemplates a contract that is voidable,
that is, valid until annulled.
36. (B) According to Article 1331, is the false notion of thing or fact material to the contact.
Mistake false lie is the mistake that refers to article 1331 that may arise. Therefore, B is
the answer.
37. (B) A contract ratification can either be implied or expressed. If a contract is expressed,
it must include direct terms of assent, while an implied contract typically is based on
implied laws. Therefore, B is the answer
38. (A) According to Article 1403, those entered in the name of another person by one who
has given no authority or legal representation, or who has acted beyond his powers are
unauthorized contracts.
39. (D) According to Article 1403. The following contracts are unenforceable unless they are
ratified, so letter D is the answer.
40. (C) There are three types of mistakes in contract law: (1) unilateral mistakes (2) mutual
mistakes, and (3) common mistakes. C is the answer since according to Article 1361, a
mistake of fact that is common to both parties of the instrument causes the failure of the
instrument to express their true intention.
41. (C) Article 1280 of the Civil Code of the Philippines. The guarantor may set up
compensation as regards what the creditor may owe the principal debtor, as an exception
to the general rule that only the principal debtor can set up debt against his creditor.
Given that Starstuff owes Popszie P7,000.00 while Popszie owes her P12,300.00, Mhonay,
who may set up compensation to Starstuff as a guarantor, is liable only for the excess
P5,300.00 of Popszie’s debt as the latter is insolvent.
42. (D) Article 1207 of the Civil Code of the Philippines. The concurrence of two or more
creditors or of two or more debtors in one and the same obligation does not imply that
each one of the formers has a right to demand, or that each one of the latter is bound to
render, entire compliance with the prestation. There is a solidary liability only when the
obligation expressly so states, or when the law or the nature of the obligation requires
solidarity. Since there were no internal agreements indicated for their proportion, the
amount owed will be divided equally.
43. (A) Article 1207 Civil Code of the Philippines. There is a solidary liability only when the
obligation expressly so states, or when the law or the nature of the obligation requires
solidarity. The question stated that the 3 are solidarity debtors, which means each one of
the debtors is obliged to pay the entire obligation; this is Passive Solidarity, solidarity on
the part of the debtors.
44. (B) Article 1280 of the Civil Code of the Philippines. The guarantor may set up
compensation as regards what the creditor may owe the principal debtor, as an exception
to the general rule that only the principal debtor can set up debt against his creditor.
Given that Christine owes Nino P5,000 while Nino owes her P410,000, Alex, who may set
up compensation to Christine as a guarantor, is liable only for the excess P405,000.00
of Nino’s debt even if he has already been sued.
45. (C) Article 1207-1208 of the Civil Code of the Philippines. The concurrence of two or more
creditors or debtors in one and the same obligation does not imply that each one has a
right to demand or is bound to render, respectively. There is a solidary liability as far
as Nat and Hulk are concerned. Meanwhile, a joint obligation is an obligation where the
credit or debt shall be presumed to be divided into as many shares as there are creditors
or debtors, the credits or debts being considered distinct from one another. There is a
joint obligation as far as Wanda and Vision are concerned.
Nat as a solidary creditor can collect P450,000.00. However, since the debtors are joint,
she can’t collect more than P112,500.00 (1/4 of P450,000) from Wanda, and not more
than P337,500 (3/4 of P450,000) from Vision. After collecting the whole amount of the
debt, she must give P315,000 (70% of P450,000) to Hulk representing Hulk’s share of the
credit.
46. (D) Article 1208 of the Civil Code of the Philippines. If from the law, or the nature or the
wording of the obligations, the credit or debt shall be presumed to be divided into as many
equal shares as there are creditors or debtors, the creditors or debts being considered
distinct from one another.
Total amount collectible P 69,000

Divided by: Number of Creditors 4
Total amount collectible for each creditor 17,250
Divided by: Number of debtors 3
Total amount collectible for each creditor from each debtor P5,750
47. (A) Article 1208 of the Civil Code of the Philippines. If from the law, or the nature or the
wording of the obligations, the credit or debt shall be presumed to be divided into as many
equal shares as there are creditors or debtors, the creditors or debts being considered
distinct from one another.

Divided by: Number of Creditors 4
Total amount collectible for each creditor 17,250
Divided by: Number of debtors 3
Multiplied by: Number of Debtors Involved 2
Total amount collectible by KFC to Greenwich and Pizza Hut P11,500
48. (C) Article 1222 of the Civil Code of the Philippines. A solidary debtor may avail himself of
all defenses that (in this case) is personal to him or pertain to his own share. With respect
to those which personally belong to the others, he may avail himself thereof only as
regards that part of the debt for which the latter are responsible.
In this case, Soleil is assumed to put up the defense of minority, Raoul may then avail
himself a partial defense with Soleil’s part of the obligation. His part of the obligation, that
is P12,500, is still demandable.
49. (B)

Multiplied by: Proportionate share of Francis in the debt 1/4
Total amount collectible for Francis 15,000
Multiplied by: Proportionate share of Arcel to Francis’ debt 2/5
50. (A)

Multiplied by: Proportionate share of Louie in the debt 3/5
Total amount collectible for Louie P36,000
51. (D)

Multiplied by: Proportionate share of Louie in the debt ¾
Total amount collectible for Louie P45,000
52. (C) Since there is mixed solidarity, the whole amount may be collected by any of the
solidary creditors to the solidary debtors.
53. (B) Article 1236 of the Civil Code of the Philippines. The law provides that only the amount
to which the creditor benefited could be reimbursed to the third person paying if the
payment was made without the knowledge of the debtor. If Marl cannot pay, Brix cannot
go after Denise, the guarantor, to collect.
Total amount paid P 24,000

Amount paid by Marl (8,000)
Total amount collectible for Brix to Marl P16,000
54. (D) Article 1331 of the Civil Code of the Philippines. The contract is valid and the mistake
is a simple mistake of account which does not render the consent of the parties vitiated.
This means only a correction is in order.
Total amount paid P 8,000

Amount that should be paid (3,000)
Total amount that must be returned to Jhem P5,000
55. (D) Article 1285 of the Civil Code of the Philippines. Denden can set up compensation of
debts on August 10 which was before the cession on August 12 but only with partial
compensation which is why the assignment is valid only up to the amount of P1,000.
56. (B)
Total amount due from Red P 23,000

Blue’s debt amount to Red (6,000)
Total amount that must be compensated P17,000
57. (A)

Multiplied by: Proportionate share of Nescafe in the debt 1/4
Total amount collectible for Nescafe 25,000
Multiplied by: Proportionate share of Alaska to Nescafe’s debt 1/4
Total amount collectible for Alaska from Nescafe P6,250
58. (B)

Multiplied by: Proportionate share of Kopiko in the debt 1/4
Total amount collectible for Kopiko 25,000
59. (D) Angels is not the debtor but the creditor in this situation, therefore she is not liable
for payment.
60. (C) Solidary creditors are entitled to the whole amount from their solidary debtors.
Similarly, a solidary debtor may be required to pay the whole amount if demanded by
their creditor.

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Junior Philippine Institute of Accountants Manila

Special Qualifying Examination

2. Obligations are derived from:

3. Ali’s Obligation to Eloi is to deliver a cellphone worth P15,000 on September

4. It is an event which cannot be foreseen, or which, though foreseen, is

5. It is a juridical relation whereby a person may demand from another the

6. It is a delay on the part of the debtor in fulfilling his obligation.

11. It is a voluntary administration of the property of another without his consent.

d) Diligence of a good father of a good family

14. It is a way of extinguishment of obligation in the meeting in one (1) person of

15. Which of the following is an indivisible obligation?

19. These are the essential requisites of an obligation except:

22. This is the act of deliberately deceiving others, by feigning or pretending by

24. When remedy allowed by law by means of which a written instrument is

25. These are the kinds of defective contracts except:

28. Cannot be sued upon or enforced unless they are ratified.

30. These contracts have no effect at all and cannot be ratified.

36. The false notion of a thing or a fact material to the contract.

37. This is the kind of ratification where it is manifested in words or in writing.

54. Jhem purchased 50 pieces of watermelons from Pochollo which is worth

P1,000 due on August 1;

On August 12, Kathleen assigned her right to Christine. Kathleen notified

Summary of Answers – Explained

parties to disclose a material fact. A mistake, misrepresentation, or fraud. Undue influence

Total amount collectible P 69,000

Total amount collectible P 69,000

Total amount collectible P 60,000

Total amount collectible P 60,000

Total amount collectible P 60,000

Total amount paid P 24,000

Total amount paid P 8,000

Total amount due from Red P 23,000

Total amount collectible P 100,000

Total amount collectible P 100,000

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