Obligations and Contracts
Obligations and Contracts
Obligations and Contracts
I
1. As a general rule, in order for the debtor to be considered in legal delay, the
necessary demand to be made is:
a. Judicial Demand
b. Extrajudicial Demand
c. A or B
d. A and B
2. One of the following is not a requisite of cause in a contract. Which one is it?
a. It must exist.
b. It must be clearly stated in the contract.
c. It must not be false.
d. It must be lawful
3. Ana, without authority from Mark, sold the latter's car in the name of the
latter. The contract is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
6. Ayee owes Buko P 50,000. The obligation is secured by the guaranty of Cat,
and a real mortgage on Ayee's lot. Subsequently, Cat, without the knowledge of
Ayee, paid Buko the amount of P 50,000.
a. Cat can go after Ayee to collect. If Ayee cannot pay, Cat can foreclose the
mortgage because he is entitled to subrogation.
b. Cat can go after Ayee to collect. If Ayee cannot pay, Cat can foreclose the
mortgage because he is entitled to compensation.
c. Cat can go after Ayee to collect. If Ayee cannot pay, Cat can foreclose the
mortgage because he is entitled to condonation.
d. Can can go after Ayee to collect but he is not entitled to any other right
because the payment he made to Buko was without the knowledge of Ayee.
10. Statement 1: "I promise to pay within 2 years" is an obligation with a period,
the creditor having a right to demand payment within 2 years from the date of
the instrument Statement 2: Ten sacks of corn can be compensated (legal
compensation) by ten sacks of rice
a. Both are true
b. Both are false
c. Statement 1 is true and 2 is false
d. Statement 1 is false and 2 is true
11. Ana owes Brett P10,000 payable on February 25,2021. Later, Ana forces
Brett to sign a promissory note for P10,000 also payable on February 25,2021.
If all the other requisites of compensation are present, are both debts
extinguished?
a. Yes, under legal compensation
b. No, B's consent was obtained by force
c. Yes, with approval of the court
d. No, the contract is unenforceable
12. Xander delivered by mistake a sum of money to Damon and Lucas a sum of
money which should have been delivered to Cassie and Maddie. Xander now
demands the return of the same from Damon and Lucas. The liability of the
latter for the sum of money to which they are not entitled shall be:
a. Damon and Lucas are not liable for having received the money in good faith.
b. Damon and Lucas are not liable because it was Xander's mistake.
c. Damon and Lucan shall be liable jointly.
d. Damon and Lucas shall be liable jointly and severally.
13. Juyeon has an obligation to deliver to Hyunjae a piece of land on April 15,
2021 with a fair market value of Php 5,000,000 on the date of delivery. However,
Hyunjae must dance as a condition. Hyunjae fulfilled this condition on July 1,
2021, and the fair market value on that date increased to Php 8,000,000. Juyeon
insists that he should be entitled to the increase in fair market value of the land
since Hyunjae only fulfilled the condition after the agreed date of delivery.
Decide:
a. Juyeon is entitled to the increase in fair market value because the
improvement happened naturally and through passage of time, and Hyunjae is
considered to be in delay after April 15, hence, any benefit shall not inure to
Hyunjae. This is a case of mora accipiendi.
b. Juyeon must deliver the piece of land on July 1, 2021. However, he can
demand to be paid by the amount of increase of the fair value, and if Hyunjae
will not pay, the obligation will be extinguished and Juyeon can take back the
piece of land.
c. Hyunjae is entitled to the improvement because it happened naturally and
through passage of time, hence, it shall inure to Hyunjae. Hyunjae is not in legal
delay because the obligation is subject to a suspensive condition.
d. The obligation is extinguished after April 15, 2021.
15. A was badly in need of money. He offered to sell his parcel of land to B for
P100,000. B agreed and paid A the P100,000 and A signed a receipt. When B
wanted to register the sale, he needed a Deed of Absolute Sale. What can B do?
a. B may sue A to return the P100,000 under the legal maxim "No one shall
unjustly enrich himself at the expense of another"
b. B may posses and utilize A's land as a buyer in good faith
c. B may compel A to execute the Deed of Absolute Sale because the contract is
valid.
d. B cannot get back the P100,000 because the contract is not enforceable
II
1. The following, except one, are the characteristics of void or inexistent contract.
Which is the exception?
a.they are not subject to ratification.
b. the right to raise the defense of illegality cannot be waived.
c. the action or defense for the declaration of the nullity or
inexistence of the contract does not prescribe.
d. the defense of illegality of the contract is available to a third person whose
interest is not directly affected.
4. Kristian Gay, while driving his school bus negligently, hit a tree, inflictin upon
his student-passenger and a pedestrian severe bodily injury. What is the source
of Kristian Gay's obligation towards his student-passenger?
a. quasi-delict
b. quasi-contract
c. delict
d. contract
6. Sara Tancredi alleged that Michael Scofield promised to give her ten hectares
of land. This is in consideration of Sara's meritorious service to Michael when
Sara, being a nurse, took care of him while he was still inside the prison. Michael
pleads in defense that since the promise was not in writing, then it is
unenforceable under the Statute of Frauds. Decide.
a. the statute of frauds is applied because A has rendered services already.
b. the promise is unenforceable. Under the statute of frauds, contracts involving
real property must be in writing to be enforceable.
c. the statute of frauds can apply to partially executed contracts.
d. the statute of frauds is inapplicable here because the promise to give the land
is not a sale of real property.
11. Harry obliged himself to deliver a specific car to Pamela on December 25,
2010, with a stipulation that Harry is liable even if the thing is lost due to a
fortuitous event, and without the need of a demand. On due date, the car was
totally damaged by a strong typhoon. Which of the following is correct?
a. Pamela can require another person to deliver a car, expenses chargeable to
Harry.
b. obligation is totally extinguished.
c. obligation remains to subsist, but converted into a monetary consideration.
d. Pamela can compel Harry to deliver another car.
13. A, 35 years old, B, 25 years old, and C, 15 years old, are solidary debtors of
X, 45 years old, in the amount of 9,000.
a. X may collect from A 9,000.
b. X may collect from A 6,000.
c. X may collect nothing because the obligation is voidable, C being a
minor.
d. X may collect from A 3,000.
14. A kind of period or term in which the obligation becomes demandable upon
arrival of the day certain.
a. definite
b. indefinite
c. ex die
d. in diem
15. O is the owner-operator of Xerex busliner. D, while drunk, drove one of O's
Xerex buses and accepted passengers at a discounted rate. D then drove the bus
recklessly, and inevitably, it crashed into an electric post, resulting in serious
physical injuries to the passengers. The latter, knowing that D is insolvent, filed a
suit for tort against D's employer, O, but O raised the defense of having exercised
extraordinary diligence in the safety of the passenger. Is O's defense
meritorious?
a. NO, as in tort actions, the proper defense is due diligence in the selection and
supervision of the employee by the employer.
b. YES, as a common carrier can rebut the presumption of negligence by raising
such a defense.
c. YES, as a common carrier can invoke extraordinary diligence in the safety of
passengers in tort cases.
d. NO, as B, the common carrier's employee, was obviously negligent due to his
intoxication.
16. This is adjudicated in order that a right of the plaintiff, which has been
violated or invaded by the defendant, may be vindicated or recognized, and not
for the purpose of indemnifying the plaintiff for any loss suffered by him.
a. temperate damages
b. moral damages
c. liquidated damages
d. nominal damages
17. On a certain year, D was obliged under a contract executed on January 1 to
deliver an agricultural land to C on February 1. D, however, actually delivered the
land and the fruits thereof to C on March 1. On January 1, what right, if any,
does Chave?
a. no right at all
b. Jus in re
c. usufruct
d. Jus in personam
18. Tabura was appointed guardian of Tayabas, the latter being 17 years old.
Tayabas sold her parcel of land in writing to Ulalan valued at 1,000,000 for
700,000, suffering lesion of more than one-fourth. What is the status of the
contract?
a. void
b. unenforceable
c. voidable
d. rescissible
19. On July 15, 2006, X entered into a contract with Y. On February 10, 2007, X
discovered that fraud was committed at the time he entered into the contract, a
fraud that vitiated his consent. The action for annulment shall be brought
a on February 10, 2007
b. within three years from the time of the fraud
c. within four years from February 10, 2007
d. within four years from the time A entered into the contract
20. Edgar died leaving his estate, to wit: Assets valued at 1,000,000 and
Accounts Payable to Ike amounting to 1,500,000. The legal heirs of Edgar
voluntarily paid 1,500,000. The heirs of Edgar cannot recover the excess
payment of 500,000 because it constitutes a:
a. natural obligation
b. civil obligation
c. quasi-contract
d. quasi-delict
22. On 1 July 2019, Serrano offered to sell his only BMW car for 2,000,000 to
Benitez who was interested in buying the same. In his letter to Benitez, Serrano
stated that he was giving Benitez up to 31 July 2019 to make up his mind
whether to buy the car or not. On 25 July 2019, Serrano personally went to
Benitez to inform him that he was no longer willing to sell the car unless the
price was increased to 2,400,000 because another buyer was interested in
buying the car for the said amount of 2,400,000. Which of the following
statements is correct?
a. Benitez may compel Serrano to sell to him the car for 2,000,000. b. Serrano
may validly withdraw his offer to Benitez because the option was not founded
upon a consideration.
c. Serrano may not withdraw his offer until after the lapse of the option period
that he gave to Benitez.
d. the increase in price made by Serrano was not valid because it was made
within the option period.
23. State the correct order of laws or rules governing innominate contracts: I.
Customs of the place
II. Rules governing the most analogous nominate contracts
III. Provisions of Titles I and II of Book IV of the Civil Code
IV. Stipulation of the parties
a. IV, III, II, I
b. I, II, III, IV
c. II, I, IV, III
d. III, IV, I, II
25. When during a fire, flood, storm, or other calamity, property is saved from
destruction by another person without the knowledge of the owner, the latter is
bound to pay the former just compensation based on what precise source of
obligation?
a. quasi-contract
b. solution indebiti
c. negotiorum gestio
d. ex lege
26. The degrees of negligence under Roman Law, from the least to the greatest
are:
a. culpa levissima, culpa levis, culpa lata
b. culpa lata, culpa levis, culpa levissima
c. culp evis, culpa lata, culpa levissima
d. culpa lata, culpa levissima, culpa levis
27. John Zeus borrowed 10,000 from Krisette. Clandestine is the guarantor of
John Zeus's obligation to Krisette. Without the knowledge or consent of John
Zeus, Lurd paid Krisette 10,000. Later, Lurd demanded from Clandestine
(as guarantor of John Zeus) reimbursement of the amount he (Lurd) paid to
Krisette. Can Lurd claim reimbursement from Clandestine?
a. YES, because John Zeus was benefited of the payment by Lurd Ed. b. NO,
because Lurd Ed can not be subrogated in the place of the creditor.
c. YES, because Lurd Ed acquires the right of the creditor.
d. NO, because Lurd Ed is a third person to the contract.
28. In a contract of sale executed by 5 and B, it appears that 5 sold his motor
vehicle to B for 500,000. It turned out, however, that 5 owns three (3) motor
vehicles, namely: (a) Ford Ecosport valued at 600,000; (b) Honda City VALUED AT
400,000; and (c) Isuzu Crosswind valued at 500,000. Which of the following is
correct?
a. the parties can seek the interpretation of the word "motor vehicle" as it is
ambiguous.
b. there is no contract at all.
c. the parties can ask for annulment of the contract.
d. the parties can ask for reformation.
29. Mr. Gor bought a big bike from Bata, a minor, for 100,000. One week later,
Mr. Gor discovered that Bata was a minor at the time of sale, such that, he lost
no time in filing a complaint in court to annul the sale. Will the action prosper?
a. NO, the right to annul the sale is given to Bata.
b. YES, Bata cannot file the action to annul the sale because he is a minor.
c. YES, Bata being a minor is incapacitated to enter into contract.
d. NO, unless there is lesion of more than 1/4 of the value of the property.
30.5 offered to sell to B his house and lot for 10,000,000. In order to pressure B
into buying said house and lot, T, a very good friend of 5, threatened B with
death as a result of which B accepted the offer of 5. It turns out now that the
market value of the house and lot is 15,000,000. Is the contract of 5 and B
valid?
a. the issue of the contract being voidable is not relevant because B will not
have the contract avoidable because it is actually favorable to him.
b. it is not B but S or T who can file the action for annulment.
c. the contract is valid since it is very clear that 5 did not apply the intimidation.
d. the contract is voidable because the consent given by B is anyway vitiated
even if the intimidation was employed by a third person.
III
4. Without the written consent or ratification of the specific act by all the limited
partners, a general partner or all of the general partners have no authority to:
a. confess a judgment against the partnership.
b. do any act that would make it impossible to carry on the ordinary business of
the partnership.
c. do any act in contravention of the certificate.
d. all of the choices
8. Chubby and Hannah are partners in buying and selling automobiles. Chubby,
by the partner's agreement, was authorized to buy automobiles on a cash basis,
never on the installment plan. One day Chubby bought on credit or on
installment plan a car from X, a client. X did not know of Chubby's lack of
authority. Chubby's purchase was made on behalf and in the name of the
partnership. Is the partnership bound?
a. NO, because acquisition of automobiles requires the consent of all partners.
b. NO, because Chubby was not really authorized to bought on installment plan.
c. YES, because all transaction made by any partners with third person is valid
provided the latter acted in good faith.
d. YES, because although Chubby was not really authorized, still for "apparently
carrying on in the usual way the business of the partnership" Chubby is
implicitly authorized and X did not know of Chubby's lack of authority.
10. Fritz Angel, Mary Prilene, Noerine and Micay are partners where Micay is an
industrial partner and Fritz Angel, Mary Prilene, and Noerine contributed
400,000, 200,000 and 200,000 respectively. FriMaNoMi & Co. became indebted
to X in the amount of 1,800,000.
a. X must first exhaust the partnership assets amounting to 800,000 and then
hold liable jointly Fritz Angel, Mary Prilene, Noerine and micay from the balance
of 1,000,000 - but after Micay the industrial partner pays X 250,000 she can ask
reimbursement from Fritz Angel, Mary Prilene, and Noerine so that in the end
Micay as an industrial partner will not be liable for losses among themselves.
b. X can only hold liabe Fritz Angel, Mary Prilene, and Noerine as the capitalist
partners.
c. X must first exhaust the partnership asset of 800,000 and then hold Fritz
Angel, Mary Prilene, and Noerine jointly for the balance of 1,000,000.
d. X must first exhaust the partnership assets amounting to 800,000 and then
hold Fritz Angel, Mary Prilene, Noerine and Micay solidarily liable for the balance
of 1,000,000.
15. Allan, Beth and Chris are partners with capital contribution of 15,000, 10,000
and 5,000, respectively. Supposed on dissolution, the assets of their partnership
amount to only 46,000 and it owed Delia the amount of 50,000. Chris owes
Polly on his personal account 6,000. The partners have no separate personal
property except Chris whose separate property amounts 7,000. Which is correct?
a. Delia and Polly shall divide Chris separate property equally.
b. Delia shall be preferred as regards Chris separate property.
c. Delia and Polly shall divide Chris property pro-rata.
d. Polly shall be preferred as regards Chris separate property.
16. Wilma, Olga and Wynona agreed to form a limited partnership with Wilma
and Olga as general partners contributing 50,000 each, and Wynona as limited
partner contributing 100,000. The partnership which is to engage in the trading
of garments was named "WOW Garments Co., Limited" as indicated in the
certificate signed and sworn to by the partners before a notary public. However,
the certificate was not filed with the Securities and Exchange Commission. In the
meantime, the partners already begun operating the business and transacting
with third persons.
a. the partnership entered into by Wilma, Olga, and Wynona is void.
b. the partnership will be considered a limited partnership as indicated in its
name. Only Wilma and Olga will be liable with their separate property after the
exhaustion of partnership assets.
c. the partnership will be considered a general partnership. Accordingly, all
partners will be liable with their separate property after the exhaustion of
partnership assets.
d. Wilma, Olga and Wynona will be considered separate as sole proprietors with
each one having a capital equivalent to their respective contributions.
17. True or False: A corporation with one stockholder owning 99% of the shares
is a dummy corporation and, as such, the corporate fiction thereof may be
disregarded.
18. Which of the following losses will not cause the dissolution of a partnership?
a. loss after delivery of a specific thing where the partner contributed only its
use and enjoyment, he reserved the ownership thereof.
b. loss before delivery of a specific thing where the partner promised to
contribute only its use and enjoyment, reserving the ownership thereof.
c. loss of a specific thing after its delivery to and acquisition of its ownership by
the partnership from partner who contributed the same.
d. loss before delivery of a specific thing which a partner has promised to
contribute to the partnership.
21. True or False: The liability of a subscriber for unpaid subscription cannot be
compensated or set-off with the value of his shares nor can stock dividends
declared be applied as payment for the same.
22. True or False: An executive committee may enter into a contract on behalf of
the corporation for the sourcing out of janitorial services.
25. True or False: All shares of a banking corporation are par value shares.
27. True or False: A corporation, unlike a partnership, can only exercise express,
implied and incidental powers.
28. True or False: Board of directors may attend meetings either in person or by
proxy or by virtue of a VTA or via teleconference i.e. zoom, google meet,
facebook messenger and the like.
29. True or False: The separate personality of the corporation is a shield against
personal liability of its officers and stockholders.
31. True or False: Unpaid shares have the right to receive dividends.
32. True or False: The incumbent board of directors may pass a resolution to
change the date of the regular meeting.
34. True or False: Five (5) Chinese nationals, majority of whom are residents of
China, may form a corporation in the Philippines
35. True or False: An OPC must have one stockholder but may subsequently
have several stockholders.
36. True or False: Contracts entered into by and between corporations with
interlocking directors are valid until annulled.
37. General partners shall have no right to perform the following acts without
the written consent or ratification by all the limited partners, except: a. to have
the partnership books kept at the principal place of business of the partnership,
and at a reasonable hour to inspect and copy any of them.
b. continue the business with partnership property on the death, retirement,
insanity, civil interdiction or insolvency of a general partner, unless the right to
do so is given in the certificate.
c. admit a person as a general partner.
d. admit a person as a limited partner, unless the right to do so is given in the
certificate.
38. A and B are partners engaged in the real estate business. A learned that was
interested in buying a certain parcel of land owned by the partnership, even for
a higher price. Without informing B, A was able to make B sell to him (A) his
(B's) share in the partnership. Then A sold the land at a big profit.
a. the sale of the land to C is void since it was without the knowledge of B.
b. A is liable to B for the latter's share in the profit.
c. C is liable to B for the latter's share in the profit.
d. the partnership is dissolved when A became the sole owner.
39. True or False: Checks may be used as consideration for shares subscribed
45. Joseph and Edward entered into a universal partnership of all present
property. At the time of their agreement, Joseph had a four-door apartment
which he inherited from his father 3 years earlier. Edward, on the other hand,
had a fishpond which he acquired by dacion en pago from Robert. During the
first year of the partnership, rentals collected on the four-door apartment
amounted to 480,000; while fish harvested from the fishpond were sold for
300,000. During the same period, Edward received by way of donation a two
door apartment from his uncle. This two door apartment was rented to Ejercito
and generate a rental income of 10,000. The partners had no stipulation that
property subsequently acquire shall belong to the partnership. Which of the
following does not belong to the common fund of the partnership?
a. four door apartment, two door apartment and rental income of 10,000
b. two door apartment
c. the four door apartment and the two door apartment d. two door apartment
and rental income of 10,000
47. A, B and C were partners. While acting within the scope of the firm's
business, A committed tort against X, a third person. Is the firm liable?
a. YES, moreover A, B, and C as well as the firm itself, are liable prorata.
b. NO, because only A was at fault.
c. YES, moreover A, B and C as well as the firm itself, are liable in solidum.
d. NO, X remedy is to go after only the property of A who
committed the torts.
48. True or False: No par value shares do not have any consideration.
49. In a limited partnership, the creditor of a limited partner may charge the
interest of the indebted limited partner, the interest so charged may be
redeemed with:
a. partnership property
b. both partnership property and separate property of the general partner
cumulatively
c. separate property of any general partner
d. both partnership property and separate property of the general partner
alternatively
IV
1.It is the juridical relation resulting from lawful, voluntary, and unilateral acts
by virtue of which the parties become bound to each other to the end that no
one shall be unjustly enriched or benefited at the expense of another.
a. Agreement
b. Vinculum juris
C. Contracts
d. Quasi-Contracts
6. In Accion subrogatoria the creditor may exercise all of the rights and bring all
of the actions which the debtor may have against third persons if:
a. If the account is personal
b. The debtor's acts are fraudulent
C. The debtor has performed an act subsequent to the contract, giving
advantage to other persons
d. Creditor must have the right of return against debtor
7. In Accion Pauliana Rescission, which involves the right of the creditor to attack
or impugn by means of rescissory action any act of the debtor which is in fraud
and to the prejudice of his rights as creditor provided:
a. The debt is due and demandable
b. There is a failure of the debtor to collect his own debt from 3rd persons either
through malice or negligence
c. The debtor's assets are insufficient d. The debtor has performed an act
subsequent to the contract, giving advantage to other persons
9. When the thing deteriorates with the debtor's fault, the creditor may choose
one of the following:
a.Mutual restitution
b. Rescission (cancellation) of the obligation with indemnity for damages
C. Suffer the deterioration of the Thing
d. Institute an action for negligence.
10. It is a future and certain event upon the arrival of which the obligation (or
right) subject to it either arises or is terminated.
a. Fortuitous events
b. Condition
C. Period
d. Date and time
1. When the debtor binds himself to pay when his means permit him to do so,
the obligation is:
a. Conditional
b. Pure
c. Simple
d. With a Period
2. Contracts which cannot be sued upon unless ratified, thus it is as if they have
no effect yet are:
a. Voidable
b. Rescissible
c. Void
d. Unenforceable
3. If the obligation of the debtor is "I will pay you my debt after I have arrived
from abroad," this is
a. Unenforceable
b. With a Period
c. Void
d. Conditional
4. When the characters of the creditor and the debtor are merged in one and the
same person, there is extinguishment of the obligation by:
a. Compensation
b. Merger of Rights
c. Novation
d. Remission
6. "A sells to B his lot and house in the city if A decides to transfer and live in
the countryside" is an example of:
a. Mixed Condition
b. Potestative Condition
c. Casual Condition
d. Resolutory Condition
9. if the obligor binds himself to perform his obligation as soon as "he shall
have obtained a loan" from a certain bank, this obligation is:
a. With a Term
b. Conditional
c. Suspensive
d. Resolutory
2. Contracts which cannot be sued upon unless ratified, thus it is as if they have
no effect yet are:
a. Voidable
b. Rescissible
c. Void
d. Unenforceable
3. If the obligation of the debtor is "I will pay you my debt after I have arrived
from abroad," this is
a. Unenforceable
b. With a Period
c. Void
d. Conditional
9. If the obligor binds himself to perform his obligation as soon as "he shall
have obtained a loan" from a certain bank, this obligation is:
a. With a Term
b. Conditional
c. Suspensive
d. Resolutory
10. Contracts entered into in a state of drunkenness or during a hypnotic spell
are:
a. Void
b. Valid
c. Voidable
d. Legal
11. Delay in the giving or delivering of a thing
a. Mora solvendi ex re
b. Mora solvendi ex persona
c. Mora accipiende ex re
d. Mora accipiende ex persona
18. Three of the following contracts are void. Which one is not?
a. Oral contract of partnership of three partners and capital contribution is more
than P3,000 in cash
b. Written contract contemplating impossible services
c.. Oral contract of partnership where real estate is contributed as capital
d. Agent's authority to sell land is given orally.
19. When a third person assumes the payment of the obligation even without
the knowledge and consent of the debtor but with the consent of the creditor
a. There is novation
b. There is delegation if debtor is released c. There is subrogation
d. There is expromission if debtor is released
Question: How do you apply the laws on obligations and contracts to everyday
activities and business dealings?
Answer: We apply laws on obligations and contracts unconsciously to our daily
activities. One will not notice that in performing a simple common task you have
applied several principles on obligations and contracts. Like, for example, buying
a piece of pandesal, the buyer will offer to buy and the seller will accept. At this
point, once the seller and buyer agrees to the object and price, and their minds
have met; each of them will not just rescind or refuse to comply. Even without
knowledge of law, one will not just back out from the perfected sale. Then, after
the perfection of the contract of sell; unknowingly, they will go on to
consummate the same. The buyer will hand the money and the seller, in return,
will hand over the pandesal. A clear example of reciprocal obligations, isn't?
If the money given is more than the price of the pandesal, the seller will give
the change. That is because he knows no one should be enriched at the expense
of another; hence, he has the obligation to return what is not due him. Likewise,
if what was delivered to the buyer is more than what he paid for, he will return
the same under the same principle, creating obligation to an implied return.
In a simple, but very common, transaction, the parties are not aware that they
are applying the basic principles of law on obligations and contracts. They might
not be well versed, or even, have not had any formal education, yet they apply
these simple principles of law unconsciously. Thus, If you ask: how we apply
laws on obligations and contracts on our daily activities, we apply it unknowingly,
but instinctively, depending on one's value.
NOTES:
1. The creditor has a right that is enforceable against a definite passive subject
PERSONAL RIGHT
2. It is a thing that is particularly designated or physically segregated from all
others of the same class.
DETERMINATE THING
3. Determinate thing
A TOYOTA CAR WITH ENGINE NO. 12345, BODY NO.34890 AND A PLATE NO. ABC
123
4. Demand must be made on the due date of the obligation in order for delay to
exist in one the following cases
WHEN THE OBLIGATION DOES NOT INDICATE WHETHER DEMAND MUST BE
MADDE OR NOT ON DUE DATE.
5. Delay on the part of the creditor
MORA ACCIPIENDI
6. There shall be no liability for loss due to fortuitous events
WHEN THE OBLIGATION IS TO DELIVER A DETERMINATE THING AND THERE
WAS NO STIPULATION AS TO THE LIABILITY OF THE DEBTOR IN CAS OF
LOSS DUE TO FORTUITOUS EVENTS
7. Following are the remedies of the creditor to pursue his claims against the
debtor.
COMPEL THE DEBTOR TO PERFORM THE SERVICE IN OBLIGATIONS TO DO
8. D borrowed P50,000.00 from C. C dies before he has collected the debt
leaving S, his son, as heir. Which of the following are CORRECT?
S CAN COLLECT FROM D ALTHOUGH D AND C DID NOT AGREE THAT THE
CREDIT RIGHT WILL PASS ON TO THEIR HEIRS OF C
9. D is obliged to give C a specific car if C passes the CPA Licensure Examination.
OBLIGATION WITH A SUSPENSIVE CONDITION
10. Obligation is not immediately demandable
OBLIGATION WITH AN EX DIE PERIOD
11. Void Obligation
D IS OBLIGED TO GIVE C P5,000.00 IF D GOES TO BAGUIO
12. D is obliged to give C P10,000.00 if X dies
AN OBLIGATION WITH A PERIOD
13. When the debtors binds himself to pay when his means permit him to do so
AN OBLIGATION WITH A SUSPENSIVE PERIOD
14. Whenever a period is designated in an obligation, the said period shall be
presumed to have been established for the benefit of
BOTH THE DEBTOE AND THE CREDITOR
15. The debtor shall lose the right to make use of the period in the following
cases, EXCEPT?
WHEN HE DOES NOT FURNISH ANY GUARANTY OR SECURITY TO THE CREDITOR
16. An obligation ceases to be alternative and becomes a simple obligation
EXCEPT?
WHEN THREE PRESTATION ARE DUE BUT ONE OF THEM IS UNLAWFUL OR
IMPOSSIBLE
17. D is obliged to give C a specific watch, specific ring, or a specific bracelet.
The parties agreed that C will have the right to choose the
thing which will be given to him. Before C could make his choice, the watch and
the ring are lost through D’s fault, successively. What
is the right of C?
C MAY CHOOSE THE DELIVERY TO HIM OF THE BRACELET, OR THE PRICE OF
THE WATCH OR THE PRICE OF THE RING PLUS DAMAGES
18. D is obliged to give a specific ring. The parties agreed that D may give a
specific bracelet as substitute. Which statement is TRUE?
IF THE RING IS LOST THROUGH A FORTUITOUS EVENT BEFORE SUBSTITUTION,
THE OBLIGATION IS EXTINGUISHED.
19. A, B, C and D are obliged to give V, W, X, Y and Z P20,000.00
V MAY COLLECT FROM A P1,000.00
20. A, B, C and D joint debtors are obliged to give V, W, X, Y and Z, solidary
creditors P20,000.00
V MAY COLLECT FROM B P5,000.00
21. A, B, C and D solidary debtors are obliged to give V, W, X, Y and Z, joint
creditors P20,000.00
V MAY COLLECT FROM C P 4,000.00
22. A, B, C and D solidary debtors are obliged to give V, W, X, Y and Z, solidary
creditors P20,000.00
V MAY COLLECT FROM D P20,000.00
23. A, 25, B, 35, and C, 17, are solidary debtors of X in the amount of P9,000.00
X MAY COLLECT FROM A P6,000.00
24. Divisible obligation EXCEPT
TO GIVE DEFINITE THINGS
25. In an obligation with a penal clause, the creditor as a rule may recover from
the debtor in case of breach
ONLY THE PENALTY
26. STATEMENT I: The nullity of the principal obligation carries with it the nullity
of the penal clause -TRUE
STATEMENT II: The nullity od the penal clause carries with it the nullity of the
principal obligation – TRUE
27. D borrowed C P 50,000.00. The obligations is secured by a chattel mortgage
on D’s Toyota car. Subsequently, D paid C P20,000.00.
Unknown to D, T a third person pays C P 50,000.00 believing that D still owed C
such amount.
T CAN RECOVER P 30,000.00 FROM D. IF D CANNOT PAY, T CANNOT FORECLOSE
THE MORTGAGE ON D’s TOYOTA CAR
28. Concerning payment by cession EXCEPT ONE
THE CREDITORS BCOME THE OWNERS OF THE PROPERTOIES OF THE DEBTOR
THAT WERE CEDED TO THEM
29. D obtained from ABC Bank a loan of P 12,000,000.00 payable at the end of
10 years. Before maturity, an extraordinary inflation
supervened causing the value of the debt to fall P 4,000,000.00 on the date of
the maturity. On due date, D must pay ABC Bank
P36,000,000
30. B borrowed from XYZ Bank P 2,000,000.00 payable at the end of 5 years.
Before maturity an extraordinary deflation supervened
causing the value of the debt to rise to P 5,000,000.00 on the due date of
maturity. On the due date, D must pay ABC bank:
P 800,000.00
31. The money or currency which the debtor may compel the creditor to accept
the payment of a debt, whether public or private
LEGAL TENDER
32. The delivery and transmission of ownership of a thing by the debtor to the
creditor as an accepted equivalent of performance
DATION IN PAYMENT
33. D owes C the following debts: P 6,000.00 due on 12; P 6,000.00 due on
June 15; P 6,000.00 due on June 18; and P 6,000.00 due on June
20. All debts are unsecured except the debt due on June 20which is secured by
a pledge of D’s diamond ring to C. By agreement, the
benefit of the term on the 4 debts was granted to C. Assuming that D has P
6,000.00 on June 18 and is ready to pay C, which of the
following statement is CORRECT?
D MAY APPLY HIS PAYMENT OF P 6,000.00 TO ANY OF THE DEBTS DUE ON JUNE
12, JUNE 15 AND JUNE 18 SINCE THEY ARE ALL DUE AS OF JUNE 18
34. The offer made by the debtor to pay his obligation to his creditor
TENDER OF PAYMENT
35. Consignation alone without any tender of payment is sufficient in the
following cases, EXCEPT
WHEN THE CREDITOR PRESENTS THE TITLE TO THE OBLIGATION FOR
COLLECTION
36. M owes P 10,000.00. The obligation is evidence by a promissory note.
Subsequently, P assigned the note to A, A to B, B to C, and C
back to M. The obligation is extinguished by:
CONFUSION
37. In order that condonation may extinguish an obligation involving a movable
properly whose value exceeds P 5,000.00
IT IS SUFFICIENT THAT THE CONDONATION AND THE ACCEPTANCE ARE IN
WRITING, EVEN A PRIVATE ONE.
38. Not requisites of legal compensation?
THAT THE DEBTS ARE PAYABLE AT THE SAME PLACE
39. Henry, husband, and Wilma, wife, are legally separated. By order of the court
whi ch decreed the legal separation, Henry is obliged to
give a monthly support of P 10,000.00 to Wilma payable within the first five
days of the month. Wilma owes Henry P 10,000.00 by way
of a business loan. On the other hand, henry has not yet given Wilma’s support
of P 10,000.00 for this month. Both debts are already
due. Which statement is CORRECT?
WILMA MAY CLAIM COMPENSATION BUT NOT IN HENRY.
40. D owes C P 10,000.00 with F as guarantor. C on the other hand, owes D,
P8,000.00. Both debts are already due but D is Insolvent.
C MAY COLLECT FROM G P 2,000.00 BECAUSE A GUARANTOR CAN SET UP
COMPENSATION AS REGARDS WHAT THE CREDITOR OWES THE
PRINCIPAL DEBTOR
41. D borrowed P 50,000.00 from C. Subsequently, D proposed to C that T would
assume his (D’s) debt. C accepted the proposal of D.
DELEGACION
42. Refer to recent situation. Assume also that on due date, T could not pay
because of his insolvency which was in fact subsisting but was
not known for D or of public knowledge at the time that D delegated his debt.
C CANNOT HOLD D LIABLE BECAUSE HIS (D’s) OBLIGATION WAS
EXTINGUISHED WHEN HE WAS SUBSTITUTED BY T.
43. D obliged himself to give 5 grams of “shabu” to C. Later, the parties agreed
that D would instead give to C 5 sacks of rice. Which
statement is CORRECT?
THE NOVATION IS VOID BECAUSE THE ORIGINAL OBLIGATION IS VOID. HENCE,
C CANNOT DEMAND THE DELIVERY OF FIVE SACKS OF RICE FROM D.
44. On July1, 2015, D obliged himself to give C P 50,000.00 if C will marry X on
or before December 31,2015. The condition of the
obligation is
POSITIVE CONDITION
45. Refer to No 44. Statement I: The obligation of D is demandable if C marries
X on or before December 31, 2015 – TRUE
Statement II: The obligation of D is extinguished if its already January 01, 2016
and C has not yet married X – TRUE
Statement III: The obligation of D is extinguished on December 2, 2015 if X
dies on the said date and C has not yet married X -TRUE
Statement IV: The obligation is demandable if C marries X on January 01, 2016
– FALSE
46. On July 01,2015, D obliged himself to give C a specific car if C will not marry
X on or before December 31,2015. The condition of the obligation is
NEGATIVE CONDITION
47. Refer to No. 46. Refer to No 44. Statement I: The obligation of D is
demandable if C marries X on January 01, 2016 – TRUE
Statement II The obligation of D is demandable on December 2, 2015 if X dies
on the said date and D has not yet married X– TRUE
Statement III: The obligation of D is demandable if it is already January 01,
2016 and D has not yet married X -TRUE
Statement IV: The obligation is demandable if C marries X on December 2,
2015 – FALSE
48. D owes C P 5,000.00. T a third person and without any intention to be
reimbursed by D, paid the debt without the consent of D. C accepted the
payment.
THE PAYMENT IS CONSIDERED VALID BECAUSE IT WAS ACCEPTED BY THE
CREDITOR.
49. A mode of extinguishing obligations up to their concurrent amount when two
persons are principal debtors and creditors of each other
COMPENSATION
50. D owes C P 6,000.00. No date for payment was stipulated by the parties
C CAN REQUIRE D TO PAY AT ANYTIME
51. Under a contract executed on November 01, 2015, D obliged himself to give
a specific horse to C on December 10,2015, C demanded the delivery of the
horse but D did not comply. The following day, the horse was struck by lightning
and died instantly.
THE OBLIGATION OF D IS EXTINGUISHED BECAUSE THE LOSS IS DUE TO
FORTUITOUS EVENT AND D WAS NOT IN DEFAULT
52. Not Conditional Obligation
D TO PAY C P 5,000.00 AS SOON AS D HAS THE MEANS
53. Distinction between merger and compensation is that merger:
THE DEBTOR AND THE CREDITOR REFER TO ONLY ONE PERSON.
54. The passage of time as a mode of acquiring or losing a right including the
extinguishment of an obligation
PRESCRIPTION
55. Legal compensation shall not be proper in three of the following cases
EXCEPTION?
BANK DEPOSIT
56. D is a debtor of C for P 20,000.00. The debt is secured by a pledge of D’s
diamond ring which is in C’s possession. Before the due date, C voluntarily
returned the diamond ring to D. Which was extinguished by the return of the
ring?
THE PLEDGE OF THE DIAMOND RING ONLY
57. D promised to deliver specific horse to C on December 31, 2015, with the
stipulation that he will give C 100 grams of ‘shabu’ as a penalty if he fails to
deliver the horse on the said date. Which obligation is VOID?
THE PENALTY ONLY
58. If two or more persons claims the same right to collect from debtor, the
debtor’s appropriate remedy:
CONSIGNATION
59. The young and other products of animals, produces with the intervention of
human labor
NATURAL FRUITS
60. D owes C the following debts: P 4,000.00 due on February 01; P 7,000.00
due on February 05; P 5,000.00 due on February 10 and P4,000.00 due on
February 20. By agreements of the parties, the benefit of the period was given to
D. If today is February 14, and D has not paid any of the said debts but is
offering P 4,000.00 to C as payment today, to which debt may D apply the
payment?
TO THE DEBT DUE ON FEBRUARY 1 OR FEBRUARY 20 AT HIS OPTION
61. Refer to preceding No. Supposing that when d gave the payment to C, D did
not designate the debt to which the payment shall apply. Neither did C indicate
in the receipt that he issued to D which debt was being paid. Which debt is
being paid.
TO THE DEBTS DUE ON FEBRUARY 1, FEBRUARY 5 AND FEBRUARY 10
PROPORTIONATELY AT P10,000.00, P1,750.00 AND P1,250.00 RESPECTIVELY
62. It is a mode of extinguishing of an obligation which has a two-fold function.
One is to extinguishing an old obligation and the other to substitute a new in its
place
NOVATION
63. A, B and C are solidarily indebted to X for P 9,000.00. X is indebted to A for
P 9,000.00. Both debts are due
THERE IS A LEGAL COMPENSATION UP TO P9,000.00
64. Refer to the same facts except that the debtors are jointly liable to X. As a
result, which statement is INCORRECT?
THERE IS NO LEGAL COMPENSATION AT ALL
65. Concerning legal compensation
Legal compensation cannot take place if the debts have different due dates -
FALSE
Legal Compensation may take place although the debts are payable at different
places- TRUE
66. The absence of the stipulation on liability in case for fortuitous event is
generally to the advantage of the
DEBTOR
67. A stipulation that demand shall not be required in order to make the debtor
in delay is generally to the advantage of the:
DEBTOR
68. D borrowed P500,000.00 from C payable at the end of five years. Due to
supervening extraordinary inflation, the value of the debt fell to P250,000.00 on
the date of maturity. How much must D pay C on the date of maturity?
P250,000.00
69. An obligation cannot exist without a contract- FALSE
A contract can exist without an obligation- FALSE
70. Obligations are immediately demandable EXCEPT
OBLIGATION WITH A CONDITION ANTECENDENT
71. When a third person pays the creditor without intending to be reimbursed
and the debtor did not give his consent to the donation:
THE PAYMENT IS VALID AS TO THE CREDITOR WHO ACCEPTED IT
72. D owes C P30,000.00 due on April 01, 2015. C owes D P30,000.00 due on
March 15, 2015. What kind of compensation may possibly
take place today is February 14, 2015.
VOLUNTARILY
73. D owes C P20,000.00 payable on or before March 31, 2015. C is obliged to
pay D P20,000.00 on March 15, 2015. As a result, which statement is
INCORRECT?
C MAY CLAIM COMPENSATION ON MARCH 15,2015
74. Consignation, without any tender of payment, will release the debtor from
liability in the following case EXCEPT
THE CREDITOR IS CAPACITATED TO RECEIVE PAYMENT
75. D borrowed P 10,000.00 C. On due date, C was already insane. Nonetheless,
D gave C P10,000.00 to settle the debt. When C’s guardian
learned of the payment made by D, C was found to have only P3,000.00 left in
his wallet and that he had lost P1,500.00in a gambling game and used P
5,000.00 to by his food.
PAYMENT IS VALID ONLY UP TO P8,500.00
76. Not a feature of dacion en pago
THE DEDBTOR MUST BE INSOLVENT
77. Not a feature of payment by cession
THE DEBTOR IS TOTALLY RELEASED FROM HIS LIABILITIES
78. Statement concerning facultative obligation is CORRECT?
THE RIGHT TO MAKE THE SUBSTITUTION BELONGS TO THE DEBTOR ONLY
79. D is indebted to C for P100,000.00. Which is already due. D offers to give a
certified check to C to settle the debt
IF C REFUSES TO ACCEPT THE CHECK, D MAY REPLACE THE CHECK WITH 5,000
PIECES OF P20.00 BILL AND IF C REFUSE TO ACCEPT IT , D MAY
CONSIGN THE PAYMENT
80. The waiver of an action for fraud is valid in the case of
PAST FRAUD
81. D borrowed P50,000.00 from C. On due date, D offered to give his ring, his
bracelet or his necklace in payment of the deft of five days
from the due date of the original obligation. C accepted the offer. Two days
before the new due date, D’s ring was lost through his fault.
D IS NOT OBLIGED TO PAY DAMAGED TO C FOR THE LOSS OF THE RING DUE TO
HIS FAULT
82. Statement are presented:
Statement I: A quasi contract is an implied contract - FALSE
Statement II: There is no delay in obligations not to do.- TRUE
83. Statement are presented:
Statement I: Payment is still possible when two persons are debtors and
creditors of each other.- TRUE
Statement II: payment is impossible when a person is both the debtor and the
creditor of the same obligation- TRUE
84. D obtained loan of P1,000,000.00 from C. The debt, which is due on
December 31, 2015, is secured by chattel mortgaged of D’s brand new Toyota
Innova van. On June 1, 2015, the van was swept away by flood waters at the
height of Typhoon Olga and could no longer be found
D’S OBLIGATION P1,000,000.00 BECAME DEMANDABLE ON JUNE 01, 2015,
UNLESS HE GIVES ANOTHER SECURITY.
85. On January 01, 2015, D borrowed P500,000.00 from C with interest at 10%
per annum. The loan obligation the interest are due on December 31, 2015.
D MAY COMPEL C TO ACCEPT PAYMENT BEFORE DECCEMBER 31, 2015-
INCORRECT
C MAY COMPEL D TO MAKE PAYMENT BEFORE DECEMBER 31, 2015 -INCORRECT
86. Refer to the facts in preceding number. Assuming that on due date, D has
only P500,000.00 and he offers this amount to C who is willing to accept it as
partial payment.
THE PAYMENT SHALL BE APPLIED FIRST TO THE INTEREST AT P50,000.00. THA
BALANCE OF P450,000.00 SHALL BE APPLIED TO THE PRINCIPAL;
HENCE, D STILL OWES C P50,000.00FOR THE RPINCIPAL WHICH WILL
CONTINUE TO BEAR INTEREST
87. D obliged himself to give P50,000.00 to C if C does not fly to the moon.
THE OBLIGATION IS IMMEDIATELY DEMANDABLE
88. A, B and C are liable individual and collectively to X in the amount of
P30,000.00. On due date, X demanded payment from A. However, C is insolvent
X MAY COLLECT P30,000.00 FROM EITHER A AND B
89. Delia obtained a loan of P50,000.00 from Corazon payable on January 31.
On January 25, Delia offered to deliver her diamond ring of the same value on
January 31 to Corazon to settle the debt. Corazon accepted the offer on the
same dat. Thus, on January 31, Delia delivered her diamond ring to Corazon.
Which statement is INCORRECT?
DELIA’S LOAN OBLIGATION OD P50,000.00 WAS EXTINGUISHED ON JANUARY
31 WHEN SHE DELIVERED HER DIAMAOND RING TO CORAZON.
90. A, B and C are indebted to W, X, Y and Z in the amount of P24,000.00. In
this case:
W CAN COLLECT P2,000.00 EACH FROM A, B AND C. THEN HE NEED NOT GIVE
ANY AMOUNT TO X, Y AND Z
91. The principal of negotorium gestio does not apply:
WHEN THE PROPERTY OR BUSINESS IS NOT NEGLECTED OR ABANDONED –
DOESN’T WHEN THE OFFICUOUS MANAGER HAS BEAN TACITLY AUTHORIZED BY
THE OWNER- DOESNT
92. Statement are presented:
Statement I: There is no delay in obligations not to do. -FALSE
Statement II: Delay is applicable only to the debtor never to the creditor. - TRUE
93. The obligation of a school to provide its student a safe and secure
environment and an atmosphere conducing to learning is an obligation arising
from:
CONTRACT
94. When the debtors bind himself to pay as soon as he has the means:
THE OBLIGATION IS VALID, BUT THE CREDITOR MUST GO TO AND ASK THE
COURT TO FIX THE PERIOD FOR THE PAYMENT OF THE OBLIGATION
95. M makes an interest-bearing promissory note amounting to P100,000.00
payable to the order of P. The back of the promissory notes contains the
following indorsements: P to A, A to B, B to C and C to H who is now in
possession of the note. On due date, H goes to the office of M to collect but he
finds R who is trying to collect the amount on the note based on a power of
attorney supposedly executed in his favor by C. M is now confused on whom to
pay. He is worried that the interest will keep on accruing if he does not pay. If
you were in the position of M, the safest thing that you will do is:
GO TO COURT AND DEPOSIT THE PAYMENT BY WAY OF CONSIGNATION
96. M obtained a loan of P50,000.00 from P. The loan is evidenced by
promissory note executed by M with G signing as a guarantor of the debt. P
assigns the note to A, A to B, B to C and C to G. The assignment of the note to G
extinguished:
ONLY THE GUARANTY
97. D borrowed P200,000.00 from C. The debt is payable after 6 months and is
secured by a chattel mortgaged on D’s growing crops. A month before due date,
the crops were completely destroyed by Typhoon Ondoy
C MAY NOW DEMAND IMMEDIATE PAYMENT OF THE LOAN UNLESS D
FURNISHES ANOTHEER SECURITY
98. Void Obligation
D TO GIVE C P50,000.00 IF D WINS IN THE SWEEPTAKES D HAS NOT YET
BOUGHT THE SWEEPTAKES TICKET
99. D owes C the following debts: P3,000.00 due on July 1, P5,000.00 due on
July 6, P2,000.00 due on July 15 and P2,000.00 due on July 25. If today is July
22 and D gives P2,000.00 to C but neither nor C indicated the debts to which
the payment shall be applied to
TO THE DEBTS DUE ON JULY 1, JULY 6, AND JULY 15 PROPORTIONATELY AT
P600.00, P1,000.00 AND P400.00 RESPECTIVELY.
100. Legal compensation will not take place if:
THERE IS CONTROVERSY OR RETENTION INVOLVING ONE OF COMMUNICATED
COMMENCED BY THIRD PERSON AND COMMUNICATED IN DUE TIME TO THE
DEBTOR.
101. D borrowed P 50,000.00 from C. Not having sufficient cash to pay the debt,
D proposed to pay the debt by giving his diamond ring. C accepted the proposal
and received the ring
D’S OBLIGATION IS EXTINGUISHED BY DACION EN PAGO
102. Donita owed Carmina P200,000.00. The loan is secured by a mortgaged of
Donita’s lot. After a month Donita paid P20,000.00. Without the knowledge of
Donita, Teresa paid Carmina P200,000.00 believing that Donita still owned the
amount of P200,000.00
TERESA CAN DEMAND P180,000.00 FROM DONITA AND IF DONITA CANNOT PAY,
TERESA CANNOT FORECLOSED THE MORTGAGED ON THE LOT.
103. A, B and C are solidarily debtors of X in the amount of P60,000.00. A,
however, was a minor at the time the obligation was constituted. If X sues B, B
will be liable to X for:
P40,000.00
104. A, B and C are solidarily debtors of X in the amount of P30,000.00. If A is
insolvent, how much X collect from B?
P30,000.00
105. A, B, and C are joint debtors of W, X, Y and Z joint creditors, in the amount
of P24,000.00. In this case W can demand:
P24,000.00 FROM A, P2,000.00 FROM B AND P2,000.00 FROM C
106. If there is concurrence of two or more creditors and/ or two or more
debtors in one and the same obligation, the obligation is presumed to be:
JOINT
107. Statement I: A stipulation that an obligation shall be paid in a currency
other than Philippine legal tender is void – FALSE
Statement II: A cashier’s check is as good as cash; hence, it is a legal tender –
FALSE
108. It transfers to the person taking the place of the creditor all the rights
pertaining to the credit, either against the debtor or against
third person be they guarantors or possessors of mortgages
SUBROGATION
109. D owes C P20,000.00 with G as guarantor. C, on the other hand, owes D,
P15,000.00. Both debts are already due but D is insolvent. In this case:
C MAY COLLECT FROM G P5,000.0 BECAUSE A GUARANTOR CAN SET UP
COMPENSATION AS REGARDS WHAT THE CREDITOR MAY OWE THE
PRINCIPAL DEBTOR.
110. D is obliged to give Object 1, Object 2, or Object 3 to C. The right of choice
bas to which object will be delivered to C belongs to:
D ONLY
111. The obligation referred in the preceding number is:
AN ALTERNATIVE OBLIGATION
112. The obligation is extinguished in:
Statement I: Object 1 and Object 2 are lost through D’s fault and later Object 3
is lost through a fortuitous event
Statement II: Object 1 and Object 2 are lost through a fortuitous event, and
later Object 3 is lost through D’s fault
STATEMENT 1 ONLY
113. One of the following is an obligation with a period with a suspensive effect
“I WILL GIVE YOU P5,000.00 PER MONTH AS SUPPORT BEGINNING JANUARY 1
OF NEXT YEAR”
114. The creditor has the right to the fruits of the thing from the time:
THE OBLIGATION TO DELIVER THE THING ARISES
115. Statement I: It may or may not happen – CONDITION
Statement II: It always refers to the future – PERIOD
Statement III: It may refer to a past event unknown to the parties – CONDITION
Statement IV: It merely fixes the time for the efficaciousness of an obligation –
PERIOD
116. Obligations are demandable at once EXCEPT
AN OBLIGATION WITH A CONDITION ANTECEDENT
117. D obtained a loan of P30,000.00 from C with G a guarantor, c on the other
hand, owes G P30,000.00. Both debts are due:
Statement I: If C sues D, D may successfully put up the defense of
compensation because C owes G, D’s guarantor. – FALSE
Statement II: If C sues D, D may not put up the defense of compensation as to
what C owes G – TRUE
Statement III: If D cannot pay and C sues G, G can put up compensation
because C owes him P30,000.00 – TRUE
Statement IV: Both D’s debt to C and C’s debt to G are extinguished by legal
compensation – FALSE
118. Orlando bought his typewriter at the shop of Remigio for repair. Orlando
mase several demands for the repair work to be done but
Remigio did not undertake the repairs. Eventually, Remigio returned the
typewriter, unrepaired and with several parts missing:
Statement I: Orlando can have the type writer repaired by another repair shop
with the repair cost thereof chargeable to Remigio
Statement II: Orlando can compel Remigio to undertake the repairs
Statement III: Orlando can ask for damages for the missing parts of the
typewriter at the expense of Remigio
Which remedies may be availed by Orlando?
STATEMENT 1, STATEMENT 3
119. D is obliged to give his only car to C on December 01, 2014. On December
01, 2014, D did not deliver the car. The following day, armed
men forcibly took car from D’s garage.
D’s OBLIGATION TO GIVE THE CAR IS EXTINGUISHED
120. During the flood the properties of D were saved from destruction by C
without the knowledge of D who was then away. C incurred necessary and useful
expenses in the act of saving D’s properties. For such expenses:
D MUST REIMBURSE C ALTHOUGH C ACTED WITHOUT THE CONSENT OF D
121. A, B and C are jointly liable to X in the amount of P12,000.00. On due date,
X demanded payment from A, but A refuse to pay. How much may X collect from
B?
P4,000.00 WITHOUT ANY DAMAGES
122. Assume the same facts except A, B and C are solidarily liable to X in the
amount of P12,000.00. on due date, X demanded payment from A but A refuse
to pay. How much may X collect from B?
P12,000 PLUS DAMAGES FOR DELAY
123. A, B and C jointly borrowed P3,000.00 from X. On due date, A was insolvent.
How much may X collect from B?
P1,000.00
124. Assume the same facts except that the debtors are solidarily bound. How
much may X collect from B?
P3,000.00
125. A, 17 years old, B, 25 and C, 30, jointly borrowed P6,000.00 from X. How
much may X collect from B
P2,000.00
126. Assume the same facts except that the debtors are bound solidarily. How
much may X collect from B?
P4,000.00
127. D is obliged to pay C P10,000.00 on or before June 15. C is obliged to pay
D P10,000.00 on June 30. Who may claim compensation on June 15?
NEITHER D NOR C
128. D is obliged to pay C P10,000.00 on or before June 30. C is obliged to pay
D P10,000.00 on June 15. Who may claim compensation on June 15?
D ONLY
129. D is obliged to deliver specific horse to C for entry in the derby. The day
before the agreed date of delivery, the horse broke its right front leg. While it
could still walk, it can no longer run.
THE OBLIGATION IS EXTINGUISHED BECAUSE THE INJURY TO THE RIGHT
FRONT LEG OF THE HORSE IS A PARTIAL LOSS THAT IS SO IMPORTTANT IN
THE RELATION OF THE OBLIGATION
130. D owes C P50,000.00. Subsequently, D proposed to C that T will assume his
(D’s) debt. C accepted the proposal of D. This type of novation which involves the
substitution the debtor is known as:
DELEGACION
131. Assume also that on due date, T could not pay because of his insolvency
which was in fact subsisting but was not known to D or of public knowledge at
the time that he delegated his debt
C CANNOT HOLD D LIABLE BECAUSE HIS (D’S) OBLIGATION WAS
EXTINGUISHED WHEN HE WAS SUBTITUTED BY T
132. D owes C P30,000.00 due on June 20. C owes D the following debts:
P15,000.00 due on June 2, P4,000.00 due on June 14, P6,000.00
due on June 16; and P3,000.00 due on June 18. On June 17, c assigned his
right to X. C notified D of the assignment but D did not give his consent thereto.
On June 20, X may collect from D
P30,000.00
133. Assume the same facts except that when C made the assignment of his
credit to X, C did not notify D about it. It was only June 20 when X went to D to
collect that D learned of the assignment. In this case X may collect from D?
P2,000.00
134. D owes C P30,000.00 due on June 20. C owes D P14,000.00 due on June
15. On June 12, C assigned his rights to X. D consented to such assignments
without any reservation of his right to the compensation. On June 20, X may
collect from D:
P20,000.00
135. In order for legal compensation to take place, two of the requisites are:
that each one of the obligors be bound principally, and that he be at the same
time a principal creditor of the other, and the two debts must be due. In
addition, following requisites must be present except:
THAT THE DEBTS MUST HAVE THE SAME AMOUNT
136. In order that condonation may extinguish an obligation involving a movable
property whose value exceeds P5,000.00
IT IS SUFFICIENT THAT THE CONDONATION AND ACCEPTANCE ARE IN
WRITING, EVEN A PRIVATE ONE
137. The obligation is not extinguished by reason of the loss of the thing
through a fortuitous event in three following cases. Which is the
EXCEPTION?
WHEN THE OBLIGATION IS TO GIVE A DETERMINATE THING AND THE PARTIES
HAVE NOT STIPULATED WHETHER OR NOT THERE SHALL BE LIABILITY
IN CASE OF FORTUITOUS EVENTS
138. D issued a promissory note payable to the order of C for a debt of
P10,000.00 which bears interest at 2% per month. On due date, X
went to the place of D to collect the deb claiming that C assigned the note to
him X, however could not present the promissory note claiming that he had lost
it. D wants to make a payment because he does not want the interest to accrue
but he is at loss as to whatever he would make payment to X. In this case, the
course of action that you will advise to D to take is:
CONSIGNATION
139. D owes C the following debts: P4,000.00 due on May 01, P4,000.00 due on
May 08, P4,000.00 due on May 15, P4,000.00 due on May 22, P4,000.00 due on
May 29 and P4,000.00 due on June 15. The debts presented the price of
magazines which were delivered to D on a weekly basis. Of the 6 debts the one
due on May 22 is secured by a pledge of D’s ring. By agreement, of the parties,
C may demand payment even before the due date of the debt. As of May 31, D
had not paid any of the 6 debts. On May 31, D wanted to make payment but he
had only P4,000.00
D MAY APPLY THE PAYMENT TO THE DEBT DUE ON MAY 22 WHICH IS THE MOST
BURDENSOME TO HIM.
140. Assuming that D did not designate the debt to be paid when he remitted
the amount of P4,000.00 to C on May 31. C issued a receipt for the payment he
received from D but he did not also designate the debt that was being paid. In
this case:
THE PAYMENT SHALL BE APPLIED TO THE DEBT DUE ON MAY 22, SINCE IT IS
THE DEBT THAT IS MOST ONEROUS TO D