1. What is an obligation?

A. A contract between two parties

B. A legal relationship where one person is bound to perform a certain act for another
C. An exchange of goods or services
D. A social obligation to do something kind for someone else
Explanation: An obligation is a legal relationship where one person, the debtor, is bound to perform a
certain act for another person, the creditor.

2. What is the term used to describe an obligation that is created by a specific agreement between
parties?
A. Legal obligation
B. Natural obligation
C. Civil obligation
D. Moral obligation
Explanation: An obligation that is created by a specific agreement between parties is called a civil
obligation.

3. A construction firm borrowed money to buy materials for a project. What is the term used to
describe the company in this situation?
A. Debtor B. Creditor C. Novator D. Confusor
Explanation: The construction firm that borrowed money to buy materials for a project is the debtor,
as they are the ones who owe the money to the lender.

4. A Civil Engineering company was hired to construct a building. The contract specified that the
building should be completed by December 31. What type of obligation does this represent?
A. Natural obligation
B. Legal obligation
C. Moral obligation
D. Civil obligation
Explanation: The contract specifying that the building should be completed by December 31
represents a legal obligation, as it is a requirement set forth in a legal contract.

5. A Civil Engineer is hired to build a bridge within a certain period of time. The contract states that
the bridge should be completed by August 1, but due to unforeseen circumstances, the project is
delayed. What type of obligation does this represent?
A. Conditional obligation
B. Facultative obligation
C. Joint obligation
D. Solidary obligation
Explanation: The obligation to complete the bridge by a certain date represents a conditional
obligation, as it is contingent upon the completion of the project within the specified time period.

6. A contractor entered into a contract with an owner to renovate a house. If the contractor fails to
perform the obligations as agreed upon, what is the legal remedy of the owner?
A. The owner can take possession of the contractor's equipment
B. The owner can sue the contractor for damages
C. The owner can cancel the contract
D. The owner can ask the contractor to perform additional work without pay
Explanation: If the contractor fails to perform the obligations as agreed upon in the contract, the
owner can sue the contractor for damages.
7. Which of the following is NOT a characteristic of an obligation?
A. Personal B. Transmissible C. Extinguishable D. Voluntary
Explanation: Voluntary is not a characteristic of an obligation. The characteristics of an obligation
are: it is a legal relationship, it creates a performance obligation, it has a debtor and a creditor, and it
is enforceable.

8. Which of the following is a type of quasi-contract?

A. Payment of a debt
B. Payment of a loan
C. Unjust enrichment
D. Sale of goods
Explanation: Unjust enrichment is a type of quasi-contract where one person is unjustly enriched at
the expense of another.

9. A Civil Engineering firm was hired to build a bridge, but the owner died before the project was
completed. What type of obligation is being created?
A. Pure obligation B. Suspensive obligation C. Resolutory obligation D. Mixed obligation
Explanation: A suspensive obligation is one that is not yet due and payable, and is dependent on the
occurrence of a future event, such as the completion of a project.

10. A Civil Engineer is required to complete a project within a specific period of time, and a penalty is
imposed for every day of delay. What type of obligation is being created?
A. Joint obligation    B. Solidary obligation C. Penal obligation    D. Resolutory obligation
Explanation: The penalty imposed for every day of delay in completing the project represents a
penal obligation.

11. Which of the following is NOT a type of conditional obligation?

A. Pure obligation
B. Suspensive obligation
C. Resolutory obligation
D. Mixed obligation
Explanation: A pure obligation is one that is not subject to any condition or term.

12. What is a suspensive condition?

A. A condition that makes an obligation immediately due and payable
B. A condition that makes an obligation extinguishable
C. A condition that suspends the fulfillment of an obligation
D. A condition that cancels out an obligation
Explanation: A suspensive condition is a condition that suspends the fulfillment of an obligation until
a certain event occurs.

13. What is a joint obligation?

A. An obligation that is owed by two or more debtors
B. An obligation that is owed by two or more creditors
C. An obligation that is transmissible
D. An obligation that is personal
Explanation: A joint obligation is an obligation that is owed by two or more debtors.

14. What is a facultative obligation?

A. An obligation where the debtor has the option to perform a different obligation
B. An obligation where the creditor has the option to choose between different obligations
C. An obligation that is transmissible
D. An obligation that is personal
Explanation: A facultative obligation is an obligation where the debtor has the option to perform a
different obligation than the one originally agreed upon, and the creditor has the option to choose
between the original obligation and the alternative.

15. A Civil Engineering firm was hired to build a bridge, but the owner died before the project was
completed. What type of obligation is being created?
A. Pure obligation
B. Suspensive obligation
C. Resolutory obligation
D. Mixed obligation
Explanation: When the owner dies before the completion of the project, the obligation becomes a
suspensive obligation until the project is completed or the parties agree to cancel the contract.

16.  A Civil Engineer has two creditors who are both entitled to the payment of the same debt. What
type of obligation is being created?
A. Joint obligation
B. Solidary obligation
C. Conditional obligation
D. Facultative obligation
Explanation: When two or more creditors are entitled to the payment of the same debt, a joint
obligation is created.

17. A Civil Engineering firm was hired to build a bridge for a government project. What type of
obligation does this represent?
A. Pure obligation
B. Suspensive obligation
C. Resolutory obligation
D. Mixed obligation
Explanation: The obligation to build a bridge for a government project represents a mixed obligation,
as it involves both legal and moral obligations.

18. What is the term used to describe the act of performing an obligation?
A. Payment B. Performance C. Compensation D. Novation
Explanation: Performance is the term used to describe the act of fulfilling an obligation.

19. What is the effect of payment on an obligation?

A. It cancels out the obligation.
B. It transfers the obligation to another person.
C. It makes the obligation unenforceable.
D. It increases the obligation
Explanation: Payment cancels out the obligation, as it satisfies the debt owed.

20. What is the effect of novation on an obligation?

A. It cancels out the obligation.
B. It transfers the obligation to another person.
C. It makes the obligation unenforceable.
D. It replaces the original obligation with a new one.
Explanation: Novation replaces the original obligation with a new one, as the parties agree to modify
the terms of the original agreement.
21. What is the term used to describe the act of releasing a debtor from an obligation?
A. Payment
B. Performance
C. Compensation
D. Remission
Explanation: Remission is the term used to describe the act of releasing a debtor from an obligation.

22. What is the effect of confusion on an obligation?

A. It cancels out the obligation.
B. It transfers the obligation to another person.
C. It makes the obligation unenforceable.
D. It extinguishes the obligation.
Explanation: Confusion is the term used to describe the situation where the debtor and creditor
become the same person, thereby extinguishing the obligation.

23. A Civil Engineer borrowed money from a bank to finance a project, and the loan was secured by a
mortgage on the property. What is the effect of the mortgage on the obligation?
A. It cancels out the obligation.
B. It transfers the obligation to another person.
C. It makes the obligation unenforceable.
D. It secures the obligation.
Explanation: A mortgage is a security interest in property that secures the repayment of a debt,
meaning it provides security for the obligation owed by the borrower.

24. A Civil Engineering firm entered into a contract with a client to construct a building. The client
pays the contractor in full upon completion of the project. What is the effect of payment on the
obligation?
A. It cancels out the obligation.
B. It transfers the obligation to another person.
C. It makes the obligation unenforceable.
D. It secures the obligation.
Explanation: Payment cancels out the obligation, as it satisfies the debt owed.

25. What is the term used to describe an obligation that is not enforceable by law?
A. Natural obligation
B. Civil obligation
C. Moral obligation
D. Legal obligation
Explanation: A natural obligation is one that is not enforceable by law, but which may be fulfilled out
of moral or natural duty.

26. A Civil Engineering firm entered into a contract with a client to construct a building. The contract
specifies that the client will pay a certain amount of money in installments as the work progresses.
The firm has completed the first phase of the project and is requesting payment. What legal remedy is
available to the firm if the client refuses to pay?
A. File a complaint for damages
B. Refuse to continue work on the project
C. Seize the client's assets
D. Sue for breach of contract
Explanation: If the client refuses to pay, the contractor can sue for breach of contract.
27. A Civil Engineer was hired to build a bridge across a river. The contract specifies that the bridge
should be built to a certain height to allow boats to pass under it. The Engineer discovers that the
river has dried up, and there is no need for the bridge to be built to the specified height. What legal
remedy is available to the Engineer?
A. The Engineer can proceed with the original plan specified in the contract
B. The Engineer can build the bridge to a lower height and save on costs
C. The Engineer can seek mutual agreement with the client to amend the contract
D. The Engineer can terminate the contract
Explanation: If the Engineer discovers that the river has dried up and there is no need to build the
bridge to the specified height, they can seek mutual agreement with the client to amend the contract
to reflect the change in circumstances.

28. A Civil Engineer owes Php 100,000 to a supplier for construction materials, and the debt is due on
June 30. On June 25, the Engineer and the supplier agreed to novate the obligation by replacing the
original debt with a new debt of Php 90,000 payable on August 15. What is the effect of the novation
on the original obligation?
A. The original obligation is extinguished
B. The original obligation is suspended
C. The original obligation remains in effect
D. The original obligation is converted into a joint obligation
Explanation: Novation extinguishes the original obligation, replacing it with a new obligation.

29. A Civil Engineer was hired to design a building, and the contract specifies that the Engineer
should submit the design plans within 60 days. The Engineer completed the plans on time and
submitted them to the client, who rejected them and asked for a new set of plans. The Engineer
completed the new set of plans, which were accepted by the client, but the work took 70 days. What
is the effect of the delay on the Engineer's obligation?
A. The obligation is extinguished
B. The obligation is suspended
C. The obligation is converted into a penal obligation
D. The obligation is converted into a joint obligation
Explanation: The delay in completing the project resulted in a breach of contract, which may result in
the obligation being converted into a penal obligation.

30. A Civil Engineering firm has a debt of Php 200,000 to a supplier for construction materials, while
the supplier owes the firm Php 150,000 for work completed. What legal principle applies in this
situation?
A. Novation
B. Merger of rights
C. Confusion
D. Compensation 
Explanation: Compensation is the legal principle that applies when two parties owe each other
money or other obligations, and these obligations can be offset against each other, such that one
party's debt is cancelled out by the other party's debt.