SEMI-FINAL TEST

University of Luzon (UL) LAW 301 Judge Bryan Jasper D. Solis

DIRECTION: Read each question carefully and then choose the best answer by writing the letter that
corresponds to your choice. Use only the official exam booklet to write answers. Erasures and/or
superimpositions are strictly prohibited. Two (2) points for each item. Good luck and enjoy!

1. Which is not a special mode of payment?

a. Payment by cession
b. Dacion in payment
c. Tender of payment and consignation
d. Payment thru negotiable instrument
e. None of the above
2. For “application for payment” to apply
a. There are two or more debts of the same kind
b. There is only ine debtor and one creditor
c. All the debts are due and tendered payment is insufficient to extinguish all
obligations
d. All of the above
3. In legal “application of payment”, the partial payment shall be applied to which among
several debts due?
a. That which is most burdensome to the debtor
b. That which is secured by real mortgage
c. That which carries the highest interest rate
d. That which is unsecured
4. Generally, the right to apply partial payment to one of several debts which are due
belongs to—
a. Debtor
b. Credior
c. Either debtor or creditor
d. Law
5. The voluntary sale by debtor of his property to the creditor in order to erase a
previous debt is ______, and is known as ______.
a. Void, dacion en pago
b. Valid, dacion en pago
c. Void, pactum commissorium
d. Valid, pactum commissoirum
6. In the previous number, the sole consideration by the debtor in the sale of the
property to the creditor is—
a. Extinguishment of the obligation
b. Price
c. Peace of mind
d. All of the above
7. Debtor offers to the creditor the thing or amount due he is in possession of.
a. Cession in payment
b. Dation in payment
c. Applicaiton of payment
d. Tender of payment
8. The act of depositing the thing or amount due with the proper court when the creditor
does not desire or cannot receive it subject to formalities of the law.
a. Cession in payment
b. Dation in payment
c. Applicaiton of payment
d. Tender of payment
9. Debtor transfers all his properties that are not subject to the execution in favor of his
creditors so that the latter may sell them and apply the proceeds to their credits.
a. Cession in payment
b. Dation in payment
c. Applicaiton of payment
d. Tender of payment
10. In the previous number, the transfer of properties by the debtor to the creditor will—
a. Erase all of his debts
b. Vest ownership of the properties to the creditors
c. Have the effect of sale in favor of the creditors (Dacion en pago)
d. Save the debtor from insolvency
e. None of the above
11. X is indebted to Y for Php50,000.00. On due date, X tenders payment to Y but the
latter refused for no reason at all.
a. X’s obligation is extinguished
b. X should keep the money until Y is ready to accept payment
c. X should make a valid consignation so that the obligaiton may be
extinguished.
d. X should pay the debt to any person living in the same house as Y
12. In the previous number, ____ is the party who is guilty of default known as ____.
a. X, mora solvendi
b. X, mora accipiendi
c. Y, mora solvendi
d. Y, mora accipiendi
13. Gratuitous abandonment by the creditor of his right.
a. Condonation
b. Confusion
c. Compensation
d. Novation
14. X obliged himself to pay Y Php100,000. X executed a negotiable promissory note in
favor of Y. Y endorsed it to Z, then Z to W, then W to X. The obligation of X to Y is
extinguished by—
a. Merger
b. Confusion
c. Compensation
d. Novation
15. Compensation by operation of law.
a. Legal
b. Facultative
c. Conventional
d. Judicial
16. When principal object or condition of the obligation is changed, there is—
 a. Novation
b. Merger
c. Confusion
d. Compenasation
17. Third person on his own inititative and without the knowledge or against the will of the
original debtor assumes the obligaiton.
a. Expromission
b. Delegacion
c. Mixed
d. None of the above
18. X is indebeted to Y for Php50,000 due on December 15. Incidentally, Y is also
indebeted to X but for only Php25,000 due on December 30. A day prior to due date,
Y communicated to X for the latter to pay him only Php25,000 and that the other half
shall be set off with Y’s debt to X. On due date, Z, without the knowledge of X,
offered to pay the loan in the amount of Php50,000. Y accepted.
a. The payment by Z, a third person, is void.
b. The payment by Z, a third person, is valid provided the consent of X is
subsequently obtained.
c. The payment by Z is valid because it is accepted by Y.
d. The payment by Z is valid because it is tendered in the full amount.
19. In the previous number, assuming Z’s payment is valid, he will assumed the rights of
Y, the previous creditor, by way of—
a. Novation by susbtitution
b. Novation by subrogation
c. Compensation
d. Merger or confusion
20. Refer to No. 18. Which statement is true about Z’s entitlement to reimbursement?
a. Z is not entitled to reimbursement because the payment is without the
consent of X.
b. Z is entitled to reimbursement for the full amount.
c. Z is enetitled to reimbursement but only for Php25,000—the extent of the
payment that benefited X
d. Z is entitled to reimbursement for the full amount as well as to all the rights of
the previous creditor.
21. Refer to No. 18. Assume that the payment by Z is with consent of X.
a. Z is still not entitled to reimbursement because he is a third person and
therefore a stranger with respect to the loan contract between X & Y
b. Z is entitled to reimbursement for the full amount.
c. Z is enetitled to reimbursement but only for Php25,000—the extent of the
payment that benefited X
d. Z is entitled to reimbursement for the full amount as well as to all the rights of
the previous creditor.
22. Payment of monetary obligation thru bank check or other negotiable instruments
cannot be insisted on the creditor because—
a. It is not money, which is the only recognized form of payment by law.
b. Although it is a substitute of money, it is not a legal tender.
c. It is unsecured and there is high probably that the checking account is closed
or insufficiently funded
 d. What is owed in cash must be paid by cash.
23. If creditor nevertheless accepted a bank check in payment of monetary obligation,
such is extinghished—
a. Upon issuance of the check to creditor
b. Upon acceptance of the check by the creditor
c. Upon deposit of fund to the checking account on or before due date
d. Upon encashment of the check or its impairment due to the fault of the
creditor.
24. Provided the debtor is not in default and guilty of negligence, loss of the thing due
shall extighuish this kind of obligation—
a. Positive personal obligation
b. Negative personal obligation
c. Real determinate obligaiton
d. Real generic obligation
25. X is indebeted to Y for Php100,000. Before due date, Y died leaving his only heir, Z,
and his lone creditor, W. On the day the obligaiton is due, when X is willing to pay,
both Y and Z made conflicting claims over the payment. What must X do to
extinguish the obligation?
a. None, because the obligaiton is deemed extinguished upon the death of Y.
b. X must make pro-rate payment of Php100,000 to Z and W in order to avoid
conflict
c. X must pay the loan only to Z, the sole heir of Y.
d. X must pay the loan only to W, who has right against the estate of Y,
including the Php100,000.
e. X must consign payment of the loan in the proper court and leave Z and W to
litigate and prove their respective claims over the Php100,000.

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