Multiple Choice:

1. Amazed by the skill of X who can paint portraits using paint brushes inserted in his right armpit,
Y entered unto a contract with the former to have his own portrait done and gave X P50,000 as
full payment, therefore. After he has started painting the portrait but before its completion, X
was side swiped by a speeding car while he was drunk and walking beside the railway causing
the doctors to have his right arm amputated. In this case, what is the remedy of Y?
A. Specific performance by compelling X to go on painting Y’s portrait.
B. Nothing, as the service became impossible by reason of an act independent of the will of the
debtor.
C. Equivalent performance in terms of damages.
D. Substitute performance by allowing a third person to do his portrait with expenses therefor
charged to X.
2. Statement No. 1: In novation by way of ex promission, there can be a revival of the original
debtor’s obligation should the new debtor turns out to be insolvent and such is of public
knowledge.
Statement No. 2: In alternative obligations, what converts the same into a pure or simple
obligation is the choice of prestation to be performed by the debtor.
A. Both are false
B. Both are true
C. No. 1 is true, No. 2 is false
D. No. 1 is false, No. 2 is true
3. A thing is considered lost when it:
A. Goes out of commerce
B. Stolen or robbed
C. Perishes
D. All of the above
4. Statement No. 1: In alternative obligations, all the objects promised by the debtor to the
creditor are all due.
Statement No. 2: In facultative obligation, there are two objects due but the obligor can deliver
one thing due and the obligation is extinguished.
A. Both are false.
B. No. 1 is false; No. 2 is true.
C. No. 1 is true; No. 2 is false.
D. Both are true.
5. Statement No. 1: “I will give you P10,000 if you like.” This obligation is subject to a potestative
condition and demandable at once.”
Statement No. 2: “I will give you P10,000 if you cannot make a dead man alive”. This is a pure
obligation and demandable at once.
A. Both are false.
B. No. 1 is false; No. 2 is true.
C. No. 1 is true; No. 2 is false.
D. Both are true.
6. In a solidary obligation, D obliged himself to pay C1, C2, C3 P6,000 on December 25. If on the
date of maturity, C1 demanded payment from D but the latter paid C3 the full amount of
P6,000, which of the following statement is true?
A. The obligation of D to C2 and C1 are totally extinguished.
B. No obligation is extinguished.
C. Obligation is totally extinguished because C3 accepted the payment.
D. Only the obligation of D to C3 which is P2,000 is extinguished.
7. Source of obligation which is a rule of conduct, just and obligatory, promulgated by legitimate
authorities for common good, benefit and observance.
A. Quasi-contracts
B. Contracts
C. Delict
D. Law
8. It refers to a joint obligation:
A. One in which each of the debtors is liable only for a proportionate part of the debt and each
creditor is entitled only for a proportionate part of the credit.
B. One in which the obligation of one is a resolutory condition of the obligation of the other,
the non-fulfillment of which entitles the other party to rescind the contract.
C. One in which each debtor is liable for the entire obligation, and each creditor is entitled to
demand the whole obligation.
D. One in which either one of the parties is indispensable and the other is not necessary.
9. S sold to B a specific car for P20,000 to be paid as follows: P5,000 upon delivery of the car to B,
and the balance at the rate of P500 every three months thereafter. Subsequently, the car got
burned in the possession of B, without his fault, before payment of the balance. Is B obliged to
pay the balance?
A. Yes, but S must give another car because of the principle “Genus nunquam perit” or “Genus
never perishes”.
B. Yes, because of the principle “the thing perishes with the owner”.
C. No, because this is an installment sale, until the buyer pays the price of the sale, S remains
to be the owner.
D. No, because the car was lost without his fault. B’s obligation is extinguished.
10. “I will give you this book provided that if I like to have it back, you will return the same to me”
A. The obligation is void, because the fulfillment depends upon the will of the creditor.
B. The obligation is void, because the fulfillment depends upon the will of the debtor.
C. The obligation is valid, because the condition merely causes the loss of rights already
acquired.
D. Combination A and B.
11. D will support C until the end of this year is an obligation with:
A. A suspensive condition
B. An ex die period
C. An in diem period
D. A resolutory condition
12. In three of the following cases, compensation shall not be proper. Which is the exception?
A. Bank Deposit
 B. Civil liability arising out of criminal offenses
C. Commodatum
D. Gratuitous support
13. An obligation where only one prestation is due, with no period or condition needed is called:
A. Alternative obligation
B. Conjoint obligation
C. Pure or simple obligation
D. None of the above
14. Statement No. 1: Just before the obligation became due and demandable, the debtor proposed
to the creditor that he would give him a specific car instead of paying P150,000, and which
proposal was accepted by the creditor. Here, there is extinguishment of an obligation by way of
dacion en pago.
Statement No. 2: After substitution in facultative obligations, the loss of the principal through
the fault or negligence of the debtor shall render him liable for damages in favor of the creditor.
A. No. 1 is true, No. 2 is false
B. Both are true
C. Both are false
D. No. 1 is false, No. 2 is true
15. Statement No. 1: D obliges himself to give C a specific ring, upon failure, to give C P5,000. This is
a case of facultative obligation.
Statement No. 2: D obliges himself to give C a specific ring. However, if he so declares, D may
instead give C P5,000. This is an example of an obligation with a penal clause. Given these
examples, which of the statements is correct?
A. Both obligations are valid but both are mislabeled as to their classification as obligations.
B. Both obligations are valid and are properly labeled as to their classification as obligations.
C. Both statements are invalid and improperly labeled as to their classification as obligations
D. Both obligations are not valid.
16. In novation, which of the following is incorrect?
A. If the condition is resolutory, the new is also subject to a resolutory condition, unless
otherwise stated.
B. If the original obligation is subject to a suspensive condition, the new obligation is not
subject to the same condition unless stated.
C. In expromission, the insolvency of the new debtor shall not revive the action of the creditor
against the original debtor.
D. If the new obligation is void, original obligation shall subsist.
17. No person shall be responsible for events which could not be foreseen, or which, though forsee,
were inevitable, except:
A. When the subject matter of the obligation is a generic thing.
B. When the debtor is guilty of delay.
C. When the law expressly provides for the debtor’s liability even in cases of fortuitous events.
D. When the nature of the obligation requires the assumption of risk.
E. All of the above.
18. A obliges himself to pay X P100,000 in 30 days plus a penalty of P20,000 if A fails to pay the
obligation in due time. A failed to pay the obligation in 30 days. X can demand from A.
 A. The principal of P100,000 plus legal interest.
B. The principal of P100,000 plus P20,000 penalty plus legal interest.
C. The principal of P100,000 plus P20,000 penalty, plus legal interest, plus damages
D. The principal of P10,000 plus P20,000 penalty.

19. A period with a resolutory effect.

A.I will support you beginning January 1 of next year.

B.I will support you until A dies.
C.I will support you if A dies.
D.I will support you if A dies of TB.

20. The obligation begins only from a day certain or upon the arrival of said period.
A. Ex die C. Conditional
B. In diem D. With a period

21. The obligation remains valid up to a time certain but terminates upon the arrival of said period.

A. With a period C. Ex die

B. Conditional D. In diem

22. Anything paid or delivered before the arrival of the period, the obligor being unaware of the period
or believing that the obligation has become due and demandable.

A. May be recovered without interests.

B. May be recovered with interests.
C. May be recovered with fruits and interests.
D. May not be recovered.

23. Whenever in an obligation a period is designated, it is presumed to have been established for the
benefit
A. Of both the creditor and debtor C. Of the debtor only
B. Of the creditor only D. Of third persons

24. This is a valid obligation.

A. A will give B P100,000 if B will kill C.
B. A will give B P1,000,000 if B will agree to be the mistress of A.
C. A will give B P100,000 if B can make C rise from the dead.
D. A will give B P1,000 if B will not pose nude in a painting session.

25. Where two or more prestations have been agreed upon but only one is due, the obligation is
A. Alternative C. Conjoint
B. Facultative D. Solidary

26. Using the preceding number, the right of choice, belongs

A. To the debtor C. To both the creditor and debtor
B. To the creditor D. To third person
27. A delivered his bracelet to B for B’s necklace. No written agreement was signed by the parties.
Which of the following is appropriate description of the contract between A and B?

A. Onerous and bilateral C. Bilateral and innominate

B. Bilateral and innominate D. Aleatory and nominate

28. They are the elements that are found in certain contracts and are presumed to exist unless set
aside by the parties

A. Accidental elements C. Artificial elements

B. Natural elements D. Incidental elements

29. They refer to the elements that may be stipulated by the contracting parties
A. Accidental elements C. Artificial elements
B. Natural elements D. Incidental elements

30. The following are some accidental elements of a contract of sale, except
A. Terms of payment C. Place of payment
B. Interest rate D. Accession and accessories

31. A contract where the cause with respect to each contracting party is the prestation or the
promise of a thing or service by the other is
A. An onerous contract C. An innominate contract
B. A gratuitous contract D. An aleatory contract

32. A contract where one party receives no valuable consideration and the cause is the liberality of
the benefactor is
A. A gratuitous contract C. An onerous contract
B. A unilateral contract D. A commutative contract

33. A delivered his van to B for the latter’s use for one week without any compensation. The cause
of the contract is
A. The van of A C. The period of one week
B.The generosity of A D. The delivery of the van

34. The principle that contracting parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary to law, moral, public policy
and public order, refer to the principle of
A. Liberty of contract C. Consensuality of contract
B. Relativity of contract D. Mutuality of contract

35. The following instances will render an offer ineffective before acceptance is conveyed. Which
one will not? When one of the parties
A. Is civilly interdicted C. Becomes insane
B.Becomes insolvent D. Is placed under a hypnotic spell

36. The following statements pertain to the cause of a contract. Which statement refer to motive?
A. It is the essential reason of a contract.
B. It is always known to the contracting parties
C. It is illegality does not affect the validity of the contract
D. there will be no contract without it

37. The bargaining point, that is, when negotiation is in progress (stage in the life of a contract)
A. Consummation
B. Conception
C. Perfection
D. Birth

38. The meeting of minds regarding the object and cause of the contract (stage in the life of a
contract)
A. Conception
B. Preparation
C. Death
D. Birth

39. The point where the parties have performed their respective obligations and the contract is
terminated
A. Preparation
B. Conception
C. Perfection
D. Consummation

40. When there is concurrence of offer and acceptance, there is

A. Payment
B. Consignation
C. Consent
D. Tender of payment

41. An absolutely simulated or fictitious contract is

A. Void
B. Voidable
C. Rescissible
D. Unenforceable

42. A sold to B his cow for P5,000. No date is fixed by the parties for the performance of their
respective obligations. The obligation of A is
A. To deliver the cow immediately as there is a perfected contract.
B. To deliver the cow within the reasonable time from the perfection of the contract
C. To deliver the cow upon the payment by B of P5,000
D. To rescind the contract as there is no time fixed for the delivery and payment.

43. A owes B P10,000 due on March 10, 2010. A owes B P8,000 due on March 11, 2010. A obliged
himself to deliver to B a cow valued at P6,000 on March 12, 2010. On March 13, 2010, a paid B
P10,000. If A makes an application of payment,
A. The P10,000 should be applied to the first debt only
B. The P10,000 should be applied to the second debt only
C. The P10,000 may be applied either to the first debt or second debt
D. The P10,000 may be applied to the first debt, or to the second debt or to the third debt

44. A contract where both contracting parties are incapable of giving consent is
A. Void
B. Rescissible
C. Unenforceable
D. Voidable

45. The conception of a contract is when

A. When there is meeting of the minds
B. When negotiations are in progress
C. When the contract is executed
D. When the parties come to an agreement

46. Contract which has no effect at all

A. Rescissible
B. Voidable
C. Unenforceable
D. Void

47. Contract which can not be ratified

A. Rescissible
B. Voidable
C. Unenforceable
D. Void

48. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the
parties to a contract, the proper remedy is
A. Ratify the contract C. Annulment of the contract
B. Ask for a specific performance D. Reformation of the contract

49. A sold his land to B. The sale was made orally. B paid the agree price. B wanted to have the sale
registered but he needs a public instrument. Which is correct?
A. B may sue A for the return of his money as no one shall be unjustly enriched at the expense of
another.
B. B cannot demand the return of the purchase price because the sale is unenforceable.
C. B may compel A to execute the public instrument because the sale is valid.
D. B may only occupy and use the land as buyer in good faith

50. A is the guardian of B, a minor. B sold A’s land in writing to C valued at P1M for P.7M. The sale is
(stage in the life of a contract)
A. Rescissible
B. Voidable
C. Unenforceable
D. Void

End