MIDTERM EXAMINATION

BUSINESS LAW
Law on Obligati ons and Contracts

NIEL S. DEFENSOR, J.D.

College Instructor

Part I. True of False. Total 20 Points

Instruction: Write true if the statement is true, and false if statement is false in your answer notebook. (2 Points Each)

1. Active subject or creditor is the party who has the right to demand the performance of an obligation. T
2. The object or subject matter of the obligation is called prestation. T
3. An obligation cannot be enforced through the courts. F
4. Negotiorum Gestio refers to payment by mistakes of an obligation which was not due when paid. F
5. A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to
give something or to render some service. T
6. Natural Fruits refer to those produced by land of any kind through cultivation or labor. F
7. A thing is indeterminate or generic when it is not particularly designated or physically segregated from all others
of the same calls. T
8. Accessories include everything produced by a thing or is incorporated thereto, either naturally or artificially. F
9. Obligations derived from law are presumed. F
10. If the person obliged to do something fails to do it, the same shall be executed at his cost. T

Part II. Multiple Choice. Total 20 Points

Instruction: Choose the correct answer in the blank. Write the correct letters only (2 Points Each)

1. It is a thing that is particularly designated or physically segregated from all other of the same class.
a. generic c. determinate
b. indeterminate d. personal
2. D is obliged to C to give a specific car if C passes the board. D obligation is an example of:
a. Pure obligation c. Obligation with resolutory condition
b. Obligation with suspensive condition d. Obligation with a period
3. D is obliged to give C Php 10,000 is X dies, this is an example of:
a. Impossible obligation c. Obligation with a period
b. Obligation with resolutory condition d. Obligation with suspensive condition
4. Any waiver of an action for future fraud is ______________. Art. 1171
a. void c. voidable
b. impossible d. actionable
5. Usurious transactions shall be governed by ___________.
a. extra-ordinary diligence c. special laws Art. 1175
b. ordinary diligence d. contracts
6. Obligations whose performance does not depend on a future or uncertain event, or upon a past event unknown
to the parties, and which is demandable at once.
a. Pure obligation c. Conditional Obligation
b. Potestative Obligation d. Suspensive Obligation
7. An obligation when the fulfillment of the condition depends upon the sole will of the debtor.
a. Pure obligation c. Conditional Obligation
b. Potestative Obligation d. Suspensive Obligation
8. If the thing is lost without the fault of the debtor, the obligation shall be___________.
a. rescinded c. compromise
b. extinguished d. compensated
9. ________________ is the modification or extinguishment of an obligation by another, either by changing the
object or principal condition, substituting the person of the debtor, or subrogating a third person in the rights of
the creditor.
a. Novation c. Prescription
b. Compensation d. Rescission
 10. _______________takes place when two persons, in their own right, are creditors and debtors of each other.
a. Confusion c. Prescript
b. Compensation d. Rescission

Part III. Modified Matching Type. Total 20 Points

Instruction: Indicate if the thing is Industrial, Civil, or Natural Fruits. Write the I if it is ordinary, write E if it is extra-
ordinary diligence.

1. Banana Cue
2. Canned Sardines
3. Mango Fruit
4. Salary
5. Rent
6. Car
7. Sale Commission
8. egg
9. Dry Corn
10. Rosana Rice

Part IV. Enumeration. Total 20 Points

Instruction: Provide the following answers to the questions below. (1 Point Each)

1. Give at least 6 primary classifications of obligation under the civil code. (6pts)
2. Give at least 6 the different mode of extinguishment of obligation. (6pts)
3. Give at least 4 sources of obligations. (4pts)
4. Give at least 4 kinds of damages. (4pts)

Part V. Essay. Total 20 Points

Instruction: Provide the following answers to the questions below. (10 Point Each)

1. A,B,C, & D, joint debtors are obliged to give V,W,X,Y and Z solidary debtors for Php 20,000.00
a. How much may X may collect to B? Explain. 5 pts
b. In case C and D dies, how much may the solidary debtors collect to A and B? Explain. 5 pts
2. A. What is delay? (5pts)
B Discuss the different kinds of delay? (5pts)

“All depends on how determined we are to be successful.” – Robert Kiyosaki.