LAW ON OBLIGATIONS

1. Which of the following is not an essential element of an obligation?

A. Obligor
B. Efficient cause
C. Presentation
D. Creditor

2. A source of obligation not arising from law

A. Negotiorum gestio
B. Solutio indebiti
C. Culpa aquiliana
D. Contract

3. Which of the following is not a source of an obligation?

A. Law
B. Contracts
C. Delicts
D. Damages
E. Quasi-contracts

4. It is an obligation, which is based on positive law gives a right to enforce its

performance
A. Natural obligation
B. Civil obligation
C. Moral obligation
D. Legal obligation

5. Liability for damages in the performance of an obligation arises from the following,
except:
A. Negligence
B. Acts or omission punished by law
C. Delay
D. Fraud

6. An action to impugn the acts of a debtor intended to defraud the creditor is

A. Accion reivindicatoria
B. Accion subrogatoria
C. Accion redhibitoria
D. Accion pauliana

7. Obligations may arise from any of the following, except:

A. contacts
B. quasi-contracts
C. law
D. negligence
8. There being no express stipulation and if the undertaking is to deliver a determinate
thing, the payment shall be made
A. At the domicile of the debtor
B. At the domicile of the creditor
C. Wherever the thing might be at the moment the obligation was constituted
D. Wherever the thing might be at the moment the obligation is to be fulfilled

9. In which of the following situation is demand not necessary to consider the debtor
delayed in the performance of his obligation?
A. When the time of the performance is of the essence;
B. When the time of performance has been stipulated
C. When the law so provides;
D. When demand would be useless.

10. Demand is not needed to put the debtor in default, except

A. When demand would be useless
B. When the parties so stipulate
C. When time is of the essence
D. When the fixing of the time is the controlling motive for the establishment of
the contract

11. This is the kind of diligence that the obligor must observe in the performance of his
obligation to give something:
A. Diligence of a good father of a family
B. Extraordinary diligence of a good father of a family
C. Diligence of a father of a food family
D. Diligence of a good father of a family even if the law or the stipulation
requires another standard of care.

12. This is a principal kind of quasi-contract arising out of payment by mistake or undue
performance of an obligation:
A. Solutio indebiti
B. Negotiorum gestio
C. Other quasi-contract
D. Quasi delict

13. When the obligor voluntarily prevents the happening of the condition it is deemed that
the condition is:

A. constructively fulfilled
B. constructively extinguished
C. constructively demandable
D. constructively nullified

14. Dolo is distinguished from Culpa

 A. Waiver of an action to enforce liability may be waived
B. Liability may be reduced by the courts
C. There is deliberate intention to cause damage or prejudice
D. Responsibility arising there from is demandable

15. A, a jeepney driver, driving recklessly caused serious physical injuries to his passenger B
and pedestrian C. As a result, which of the following is not correct?
A. B may proceed against A for culpa criminal
B. B may proceed against A for culpa contractual
C. C may proceed against A for culpa aquiliana
D. C may proceed against A for culpa criminal

16. Culpa aquiliana as distinguished from culpa contractual

A. Proof of due diligence in the selection and supervision of employees is not
considered a defense
B. Proof of the contract and its breach is sufficient to warrant recovery.
C. The negligence of the defendant is only an incident in the performance of the
obligation
D. The source of liability is the negligent act of the person causing damage to
another.

17. Which of the following is not a civil liability arising from delict?
A. Indemnification for consequential damages
B. Rescission
C. Reparation
D. Restitution

18. 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. With a suspensive condition
C. With a period
D. With a resolutory condition

19. The following are requisites of an obligation, except:

A. passive subject, debtor or obligor

B. active subject, creditor or obligee
C. efficient cause
D. presentation

20. The sources of liability for damages are the following except:

A. fraud
B. negligence
C. delay
D. quasi-delict
21. This obligation is demandable at once
A. With a suspensive condition
B. With a period in diem
C. When my means permit me to do so
D. When it depends on the happening or a specified event

22. If the obligation of the debtor is I will pay you my debt after I have arrived from abroad.
The obligation is
A. Valid
B. Void
C. Voidable
D. Unenforceable

23. It is the voluntary administration of the property of another without his consent.

A. negotiorum gestio
B. Solutio indebiti
C. quasi-delict
D. contact

24. Indivisibility as distinguished from solidarity

A. Plurality of subject is indivisible
B. When the obligation is converted into one or indemnity for damages because
of breach, the character of the obligation remains
C. Refers to the legal tie or vinculum
D. Refers to the prestation which constitutes the object of the obligation

25. The following are special forms of payment, except:

A. Dation in payment
B. Tender of payment and consignation
C. Payment by cession
D. Compensation

26. Payment by cession as distinguished from dation in payment

A. The debtor is not necessarily in a state of financial difficulty
B. The effect is to release the debtor for the net proceeds of the things ceded or
assigned
C. The property is alienated by the debtor to the creditor in satisfaction of a debt
in money
D. What is delivered by the debtor, is merely a thing to be considered as the
equivalent of a performance of the obligation

27. This refers to delay on the part of the creditor.

A. mora solvendi ex re
B. compensatio morae
C. mora solvendi ex persona
 D. mora accipiendi

28. Three of the following are the rights of the creditor against the debtor who fails to pay
his debt, except:
A. Attachment of the debtor’s properties or garnishment thereof;
B. Subrogation to the rights of the debtor against third persons;
C. Rescission of contracts entered into by the debtor to defraud him
D. Send the debtor to jail for non-payment of his debt

29. One of the following is a determinate thing.

A. a BMW with license plate no. HNT 888

B. on of the four vehicles
C. a Honda car
D. a Rolex watch

30. It presupposes not only that the obligor is able, ready and willing but also more so, in
the act of performing his obligation
A. Promissory note
B. Bill of exchange
C. Tender of Payment
D. Obligation to sell

31. One is not a requisite needed in order that obligation shall be extinguished by loss or
destruction of a thing due
A. When the obligation is to deliver the house located at 123 Recto, Avenue,
Manila
B. When the thing is lost without the fault of the debtor
C. When the obligation is to deliver a brand new Honda SIR colored orange
D. When the thing is lost before the debtor incurred delay

32. Novation of a contract takes place in three of the following except:

A. Delegacion
B. Expromission
C. Subrogation
D. Assignment

33. When a third person assumes the payment or the obligation without the knowledge of
the debtor but with the consent of the creditor, there is
A. Delegacion
B. Expromission
C. Subrogation
D. Novation

34. Legal compensation shall exist in the following cases, except:

 A. That each of the obligees be the principal creditor of the other and he be at
the same the principal debtor of the other
B. That both debts be due
C. That they may be liquidated and demandable;
D. That they both consist in a sum of money or if consumable also of the same
kind and qualities as that stated.

35. It is a wrong committed without any preexisting relations between the parties.

A. natural obligation
B . quasi-delict
C. quasi-contract
D. culpa contractual

36. A, B and C borrowed P3M from D, E and F evidenced by a promissory note worded as
follows, to wit: “I promise to pay D, E and F P3M. (Sgd) A, B and C “How much can D
collect from A?

A. P3M C. P1.5M
B. P.5M D. P1M
37. In which of the following is the debtor still liable despite the fortuitous event causing the
loss of the thing?

A. The thing lost is a specific thing

B. The performance of the obligation has become impossible
C. The nature of the obligation does not require the assumption of risk
D. When the law of the obligation expressly so provides

38. It is a thing that is particularly designated or phisically segragated from all others of the
same class.

A. generic thing
B. indeterminate thing
C. determinate thing
D. real thing
39. When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be:
A. voidable
B. unenforceable
C. valid
D. void

40. Whenever in an obligation a period is designated, it is presumed to have been

established for the benefit of :

A. both the creditor and the debtor

B. the creditor
C. the debtor
D. the third party
41. When the debtor binds himself to pay when his means permits him to do so, the
obligation is:
 A. conditional
B. pure
C. simple
D. with a period
42. This payment is in kind:

A. consignation
B. payment by cession
C. dation in payment
D. application for payment

43. When the obligation is extinguished because of the passage of time, this is:

A. fulfillment of resolutory condition

B. arrival of resolutory period
C. prescription
D. rescission

44. When the debtor abandons or transfers all his properties to his creditors so that the
creditors may sell the properties and out of the net proceeds the creditor recover their
claims, this is called

A. dacion en pago
B. tender of payment and consignation
C. payment by cession
D. remission

45. Unless the law or stipulation of the parties requires another standard of care, the
obligation to give a thing carries with it the obliagation to care of it with:

A. extra-ordinary diligence
B. degree of care agreed upon by the parties
C. diligence of a good father of a family
D. diligence of a good family of a father

46. One of the following shall produce the effect of payment of debts:

A. delivery of check
B. tender of Central Bank notes
C. delivery of promissory note
D. dacion en pago

47. It presupposes not only that the obligor is able, ready and willing but more so, in the act
of performing his obligation.

A. promissory note
B. tender of payment
C. bill of exchange
D. obligation to sell

48. Acceptance of a commecial document is equivalent to payment:

 A. The check has been received as payment.
B. The check became valueless because of the creditor's fault.
C. The check is a manager's or cashier's check.
D. The promissory note is used as payment.

49. In the three of the following cases, compensation cannot be claimed by the debtor
except:

A. by the bailee in commodatum

B. by the depositor in a contract of deposit
C. by the person obliged to give support due by gratuitous title
D. by the debtor in an obligation arising from penal offense

50. In facultative obligation, the right of choice belongs to:

A. creditor
B. debtor
C. both creditor and debtor
D. third person

Law 1

1.The following are the requisites of an obligation, except

A. Passive and active subject

B. Prestation
C. Efficient cause
D. Demand

2.The right of the creditor that is enforceable against a definite debtor is

A. Real right
B. Natural right
C. Moral right
D. Personal right

3. Which of the following is a civil obligation?

A. X obliges himself to pay Y P10,000 on October 30, 2009.

B. A is a debtor of B for P20,000 due on September 30, 1995.
C. The obligation of a husband and wife to observe fidelity.
D. The obligation of a catholic to hear mass every Sunday.

4. Specific performance may not be possible in this civil obligation

A. A, a painter, obliges himself to paint the portrait of B on April 9, 2009

B. C, a farmer, obliges himself to give his only cow to D on February 14, 2009
C. E, a veterinarian, obliges himself to give one of his dogs to F on May 1, 2009
D. G, a registrar of deeds, obliges himself to effect registration of H’s parcel of land on
 February 28, 2009.

5. The source of obligations which is a rule of conduct, just and obligatory, promulgated by
legitimate authorities for common good, benefit and observance

A. Contracts
B. Quasi-contracts
C. Delicts
D. Law

6. A juridical necessity to give, to do or not to do

A. Civil obligation
B. Natural obligation
C. Moral obligation
D. Social obligation

7. They give a right of action to compel their performance

A. Civil obligation
B. Moral obligation
C. Natural obligation
D. Social obligation

8. The obligee has a right to enforce the obligation against the obligor in a court of law

A. Civil obligation
B. Moral obligation
C. Natural obligation
D. Social obligation

9. This is based on equity and justice

A. Civil obligation
B. Moral obligation
C. Natural obligation
D. Social obligation

10. The person in whose favor the obligation is constituted

A. Obligor
B. Obligee
C. Passive subject
D. Debtor

11. Synonymous to obligee

 1. Creditor 2. Active subject 3. Debtor 4. Passive subject

A. 1 and 2 C. 2 and 3
B. 1 and 4 D. 3 and 4

12. The person who has the duty of giving, doing or not doing.

A. Obligee C. Active subject

B. Obligor D. Creditor

13. Synonymous to obligor

1. Creditor 2. Active subject 3. Debtor 4. Passive subject

A. 1 and 2 C. 2 and 3
B. 1 and 4 D. 3 and 4

14. The object or subject matter of the obligation

A. Prestation C. Active Subject

B. Vinculum D. Passive subject

15. The efficient cause or juridical tie why the obligation exists

A. Active subject
B. Passive subject
C. Prestation
D. Vinculum

16. The duty not to recover what has voluntarily been paid although payment was no longer
required

A. Civil obligation C. Moral obligation

B. Natural obligation D. Juridical obligation

17. The following are sources of obligations derived from law, except

A. contracts C. delicts
B. quasi-contracts D. quasi-delicts

18. Cannot be enforced by court action and depend exclusively upon the good conscience of the
debtor.

A. civil obligation C. moral obligation

B. natural obligation D. social obligation
19. A owes B P1,000. A, knowing that the debt has prescribed, nevertheless, still pays B. Can A
recover what he voluntarily paid?

First answer Yes, because B has no right to demand the payment effected by A.
Second Answer No, the payment extinguished the natural obligation.

A. Both answers are correct.

B. Both answers are wrong.
C. Only the first is correct.
D. Only the second is correct.

20. The duty to pay taxes and support one’s family are obligations arising from

A. Law
B. Contracts
C. Quasi-contracts
D. Delicts

21. The obligation of husband and wife to render mutual help and support arises from

A. Contract
B. Law
C. Quasi-contract
D. Quasi-delict

22. A supports B, a minor, because B’s father refuses to support B. The father is obliged to
reimburse A. The source of obligation is

A. contracts C. delicts
B. quasi-contracts D. quasi-delicts

23. A juridical relation resulting from a lawful, voluntary, and unilateral act and which has for
its purpose the payment of indemnity to the end that no one shall be unjustly enriched or
benefited at the expense of another.

A. Contract
B. Quasi-contract
C. Delicts
D. Quasi-delicts

24. When a person voluntarily takes charge of another’s abandoned business or property
without the owner’s authority where reimbursement must be made for necessary and useful
expenses.

A. Quasi-contract
B. quasi-delict
C. Negotiorum gestio
D. Solutio indebiti

25. When something is received when there is no right to demand it, and it was unduly
delivered thru mistake, the recipient has the duty to return it.

A. Quasi-contract
B. Quasi-delict
C. Negotiorum gestio
D. Solutio indebiti

26. - A quasi-contract is an implied contract.

- A defendant who is acquitted in a criminal case is no longer liable civilly.

A. True; true
B. True; false
C. False; true
D. False; false

27. Tort or culpa aquiliana is

A. Quasi-contract
B. Quasi-delict
C. Negotiorum gestio
D. Solutio indebiti

28. A fault or act or omission of care which causes damage to another, there being no pre-
existing contractual relations between the parties.

A. Quasi-contract
B. Quasi-delict
C. Negotiorum gestio
D. Solutio indebiti

29. Omission of the diligence which is required by the circumstances of person, place and time.

A. Ignorance
B. Negligence
C. Impotence
D. Insanity

30. Unless the law or the stipulation of the parties require another standard of care, every person
obliged to give something is also obliged to take care of it with the proper diligence.

A. Observing utmost care.

B. Observing extraordinary diligence
C. Of a father of a good family
D. Observing ordinary diligence

31. Ordinary diligence is

A. Diligence of a good father of a family.

B. Extraordinary diligence
C. Diligence required by law
D. Diligence of a father of a good family.

32. The creditor has the right to the fruits of the thing.

A. From the time the obligation to deliver it arises.

B. From the time the fruits have been delivered.
C. From the time there is meeting of the minds.
D. From the perfection of the contract.

33. From the time the fruits have been delivered, the creditor shall acquire

A. Real right
B. Personal right
C. Moral right
D. Inchoate right

34. If A sells to B a fountain pen, the giving by A to B of the fountain pen is

A. Actual tradition
B. Constructive delivery
C. Symbolical tradition
D. Traditio longa-manu

Items 35-39 A kind of constructive delivery whereby:

35. There is delivery when the keys of a warehouse are given.

A. Traditio simbolica
B. Traditio longa-manu
C. Traditio brevi-manu
D. Traditio constitotum possessorium

36. There is delivery by mere consent or pointing out of an object.

A. Traditio simbolica
B. Traditio longa-manu
C. Traditio brevi-manu
D. Traditio constitotum possessorium
37. A possessor of a thing not as an owner, becomes the possessor as owner.

A. Traditio simbolica
B. Traditio longa-manu
C. Traditio brevi-manu
D. Traditio constitotum possessorium

38. A possessor of a thing as an owner retains possession no longer as an owner, but in some
other capacity

A. Traditio simbolica
B. Traditio longa-manu
C. Traditio brevi-manu
D. Traditio constitutom possessorium

39. The opposite of brevi-manu

A. Longa-manu
B. Simbolica
C. Constitutom possessorium
D. Quasi-tradition

40. If a thing is capable of particular designation.

A. Generic
B. Specific
C. Indeterminate
D. Indeterminable

41. If a thing refers to a class, to a genus and cannot be pointed out with particularity.

A. Generic
B. Specific
C. Determinate
D. Indeterminable

42. A wife was about to deliver a child. Her parents brought her to the hospital. Who should
pay the expenses for medical attendance?

Answer 1 – The husband, because it is his duty to support his wife and support includes medical
attendance.
Answer 2 – The parents, because they were the persons who brought the “wife” to the hospital.

A. Both answers are correct.

B. Both answers are not correct.
C. Only the first is correct.
D. Only the second is correct.

43. The following are kinds of fruits of an obligation, except

A. natural
B. industrial
C. civil
D. penal

44. Spontaneous products of the soil and the offspring and other products of animals

A. natural
B. industrial
C. civil
D. penal

45. Products of the soil through cultivation or intervention of human labor.

A. natural
B. industrial
C. civil
D. penal

46. Fruits arising out of contracts- like rental payments.

A. natural
B. industrial
C. civil
D. penal

47. When does the obligation to deliver arise?

Answer 1 – If there is no term or condition, then from the perfection of the contract.
Answer 2 – If there is a term or condition, then from the moment the term arrives or the
condition happens.

A. True; true
B. True; false
C. False; true
D. False; false

48. A is obliged to give B 10 kilos of sugar, which of the following is not correct?

A. B can demand that A obtain the sugar and deliver it to him.

B. B can just buy 10 kilos of sugar and charge the expense to A.
C. A can insist on just paying B damages or the monetary value of the sugar.
D. B may require another person to deliver the sugar and charge the expenses to A.

49. Where demand by the creditor shall be necessary in order that delay may exist.

A. When time is of the essence of the contract.

B. When demand would be useless.
C. When the obligor has expressly acknowledged that he is in default.
D. When the obligor requested for an extension of time.

50. Debtor’s default in real obligation.

A. Mora accipiendi
B. Mora solvendi ex-re
C. Mora solvendi ex-persona
D. Compensatio morae

51. Debtor’s default in personal obligation.

A. Mora accipiendi
B. Mora solvendi ex-re
C. Mora solvendi ex-persona
D. Compensatio morae

52. Default on the part of the creditor

A. Mora accipiendi
B. Mora solvendi ex-re
C. Mora solvendi ex-persona
D. Compensatio morae

53. Default on the part of both parties.

A. Mora accipiendi
B. Mora solvendi ex-re
C. Mora solvendi ex-persona
D. Compensatio morae

54. A borrowed money from B payable on December 10, 2008. If A failed to pay on due date,
will A be in delay?

A. Yes, because there is stipulation as regards the due date.

B. Yes, if the obligation is in writing.
C. No, because demand has not been made by B.
D. No, if A has the money to pay B.
55. Damages awarded for mental and physical anguish.

A. Moral
B. Exemplary
C. Nominal
D. Temperate

56. Damages awarded to vindicate a right.

A. Liquidated
B. Actual
C. Nominal
D. Exemplary

57. Damages awarded to set an example.

A. Exemplary
B. Liquidated
C. Nominal
D. Moral

58. When the exact amount of damages cannot be ascertained.

A. Exemplary
B. Liquidated
C. Temperate
D. Moral

59. Damages determined beforehand.

A. Temperate
B. Liquidated
C. Actual
D. Moral

60. A obliged himself to deliver to B the following:

1) 2008 Sing-It Yamaha Organ
2) Magalona passenger jeepney with engine No. 69 and chasis No. 88

First Statement- In case A failed to deliver the 2008 Yamaha Organ, the court may compel A
to deliver the 2008 Yamaha Organ plus damages
Second Statement - In case A failed to deliver the jeepney, the court may compel A to deliver
the jeepney plus damages.
A. True; true
B. True; false
C. False; true
D. False; false

61. I – If a person obliged to do something fails to do it, the same shall be executed at his cost.

II - Those who in the performance of their obligations are guilty of fraud, negligence, or
delay and those who in any manner contravene the tenor threof, are liable for damages.

A. True; true
B. True; false
C. False; true
D. False; false

62. I - Responsibility arising from fraud is demandable in all obligations. Any waiver of an
action for fraud is void.

II – If the law or contract does not state the diligence which is to observed in the
performance of an obligation, that which is expected of a father of a good family shall
be required.

A. True; true
B. True; false
C. False; true
D. False; false

63. I – The receipt of a later installment of a debt without reservation as to prior installments,
shall give rise to a rebuttable presumption that such installments have been paid.

II – If a taxpayer pays his income tax liability for the current year, there is a presumption that
tax liability for the previous year has been paid.

A. True; true
B. True; false
C. False; true
D. False; false

64. With regard to the right as to the fruits of the thing, which is not correct?

A. If the obligation is subject to a suspensive condition, the obligation to deliver arises from
the moment the condition happens.
B. If the obligation is subject to a suspensive condition, the obligation to deliver arises upon
the expiration of the term or period.
C. If there is no condition or term for its fulfillment, the obligation to deliver arises from the
perfection of the contract or creation of the obligation.
D. If the obligation arises from the contract of sale, the vendor has a right to the fruits
of the thing from the time the obligation to deliver arises.

65. A is obliged to deliver his only car to B on November 20, 2009. If A does not deliver, and
on November 22, 2009, a typhoon destroys the car.

A. A is not liable because the obligation is extinguished.

B. A is liable because he is in delay.
C. A and B will divide the loss equally.
D. A’s obligation is converted into a monetary obligation.

66. I – When what is to be delivered is a determinate thing, the creditor may compel the debtor
to make the delivery and if the debtor refuses, the creditor may ask that the obligation be
complied with at the expense of the debtor.

II – The obligation to give a determinate thing includes that of delivering all its accessions
and accessories, even though they may not have been mentioned.

A. True; true
B. True; false
C. False; true
D. False; false

67. What is the basis of the liability of a school when a student is stabbed inside the campus by
a stranger in the school?

A. Contracts C. Delicts
B. Quasi-contracts D. Quasi-delicts

68. The following except one, are included in civil liability. The exception is

A. Restitution C. Indemnification
B. Reparation D. Starvation

69. The thing itself shall be restored, as a rule

A. Restitution C. Indemnification
B. Reparation D. Starvation

70. The court determines the amount of damage taking into consideration the price of the thing
and its sentimental value to the injured person.

A. Restitution C. Indemnification
B. Reparation D. Starvation
71. The consequential damages suffered by the injured person and those suffered by his family
or third person by reason of the act.

A. Restitution C. Indemnification
B. Reparation D. Starvation

72. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors.

A. Accion reinvindicatoria
B. Accion pauliana
C. Accion subrogatoria
D. Accion quanti-minoris

73. A borrower agreed, that in case of non-payment of his debt, to render services as a servant.
Which of the following is not correct?

A. If the services will be rendered in satisfaction of the debt, the stipulation is valid.
B. If the services will be “for free”, the stipulation is void for being contrary to law and
morals.
C. If the services will not be gratuitous, specific performance of the service will be the
proper remedy in case of non-compliance.
D. Should there be a valid stipulation as regards the rendition of services, an action for
damages should be brought in case of non-compliance.

74. A ordered B, a 10 year old boy to climb a high and slippery mango tree with a promise to
give him part of the fruits. B was seriously injured when he fell while climbing the tree. Is
A liable?

First Answer - No, because no person shall be responsible for fortuitous events.

Second Answer – Yes, because A is negligent in making the order without taking due care to
avoid a reasonable foreseeable injury to B.

A. True; true
B. True; false
C. False; true
D. False; false

75. A pays for B’s transportation fare, without B’s knowledge and later discovers that B was
entitled to half-fare. Which is not correct?

A. A can recover the half-fare from B.

B. A can recover the half-fare from the carrier.
C. A can recover the ½ from B and ½ from the carrier.
D. A can recover half-fare from B only.
76. A borrowed P100,000 from B. the loan was secured by a mortgage of A’s land in favor of
B. Without the knowledge of A, C paid B the sum of P100,000 for A’s debt. As a result

A. C may foreclose the mortgage on A’s land if A cannot pay.

B. C cannot claim reimbursement from A in as much as the payment was made without the
knowledge of B.
C. C can recover the amount from B in case A refuses to reimburse C.
D. The obligation of A to B was extinguished but A should reimburse C the amount of
P100,000 because he was benefited by the payment.

77. When the debtor of a debtor is ordered not to pay the latter so that preference would be
given to the latter’s creditor.

A. Garnishment
B. Interpleader
C. Injunction
D. Attachment

78. A obtained a loan from B bank. The loan was embodied in several promissory notes. As
security the borrower executed a chattel mortgage on his standing crops. Said crops were
however subsequently destroyed by typhoon “Rosing”. Is A still liable for the loan despite
the destruction of the crops by a fortuitous event?

1st Answer - Yes, the obligation of A was to deliver a generic thing – money.

2nd Answer – No, the obligation was to deliver determinate things – the standing crops.

A. True; true
B. True; false
C. False; true
D. False; false

79. A sold a half-interest in his specific car to B. It was agreed that the price to be paid by B
would be used in installing a new engine on the car. Later, the car was destroyed by a
fortuitous event. Is B’s obligation to pay the price extinguished?

1st Answer - Yes, there is no more use of installing a new engine since the car has already been
destroyed by a fortuitous event.

2nd Answer – No, B must still pay because his obligation to pay in generic.

A. True; true
B. True; false
C. False; true
D. False; false
80. I – A commits the crime of theft and is asked to return the car to its owner B. If, before the
car is delivered to B it is destroyed by a fortuitous event, Is A’s liability extinguished?

II – Using above statement, A had previously asked the owner to accept the car, but the
owner without any justifiable reason refuses to accept the car, and it is destroyed by a
fortuitous event, Is A’s liability extinguished?

A. Yes; Yes
B. No; Yes
C. Yes; No
D. No; No

81. I - There is no delay in an obligation not to do something.

II – Solutio indebiti and negotiorum gestio are implied contracts.

A. True; true
B. True; false
C. False; true
D. False; false

82. I - Consent of the parties is required in quasi-contract.

II – The creditor acquires real rights over the thing from the time the obligation to deliver
arises.

A. True; true C. False; true

B. True; false D. False; false

83. The creditor has a right to the fruits of the thing from the time

A. The thing is delivered.

B. The fruits are delivered.
C. The obligation to deliver the thing arises.
D. The sale is perfected.

84. The buyer has a right to the fruits of the thing from the time

A. The thing is delivered.

B. The fruits are delivered.
C. The obligation to deliver the thing arises.
D. The sale is perfected.

85. Which is not considered as quasi-contract?

A. Solutio indebiti
B. Negotiorum gestio
C. When the third person with the knowledge of the debtor, pays the debt.
D. Reimbursement due the person who saved property during fire or typhoon without the
knowledge of the owner.

86. No longer enforceable by court action but is binding on the party who oblige with it in
conscience is

A. Civil obligation C. Moral obligation

B. Natural obligation D. Conditional obligation

87. If A pays a debt that has prescribed

1. Not knowing it has prescribed, A can recover on the ground of undue payment.

2. Knowing it has prescribed, A cannot recover for this would be a case of natural
obligation.

A. Both 1 and 2 are true C. Only 2 is true

B. Only 1 is true D. Both 1 and 2 are false

88. On June 24, 2009 A is obliged to give B his specific car. There was no delivery until June
30 when the garage of the car collapsed due to heavy rain and strong winds of Typhoon
Ondoy, and the car was totally destroyed. Is A still liable?

A. No, even if A was in default, he could plead impossibility of performance.]

B. Yes, because the contract is perfected.
C. No, because there was no demand by B to deliver the car.
D. Yes, the obligation to deliver the car is changed to pay the equivalent value because B is
in legal delay.

89. This obligation is demandable at once when it

A. has a resolutory condition. C. is with a term ex-die.

B. has a suspensive condition D. has a period.

90. When the debtor binds himself to pay when his means permit him to do so, the obligation
shall be deemed to be with a

A. Resolutory period C. Potestative condition

B. Suspensive condition D. Period.

91. A promise to give B his Volvo car if B passes the CPA Board Exams. Pending the results of
the exams, the car is destroyed by a fortuitous event without any fault on the part of A, As a
result
A. The obligation of A is extinguished.
B. The obligation of A is converted into monetary obligation.
C. The obligation of A will equitably reduced.
D. A will have to give B another car of equivalent value.

92. A period with a suspensive effect.

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

B. I will support you until January 1 of next year.
C. I will support you if A dies of TB.
D. I will support you if A marries B.

93. 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.

94. 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

95. 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

96. 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.

97. 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
98. 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.

99. 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

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

A. To the debtor
B. To the creditor
C. To both the creditor and debtor
D. To third person

101. A is obliged to give B, at A’s option either object No. 1, Object No. 2, or Object No. 3. If
all objects were lost thru A’s fault, which is correct?

A. The value of the first thing lost plus damages must be given to B.
B. The value of the last thing lost plus damages must be given to B.
C. The value of any of the things lost plus damages must be given to B.
D. The obligation is extinguished.

102.I - Using the preceding number, if objects nos. 1 1and 2 were destroyed by a fortuitous
event and later object No. 3 is destroyed by A’s fault, A would still be liable.

II - Using the preceding number, if objects nos. 1 1and 2 were destroyed by A’s fault
and later object No. 3 is destroyed by fortuitous event, A would still be liable.

A. True; true C. False; true

B. True; false D. False; false

103. A is obliged to give B either objects No. 1 or No. 2 or No. 3 at B’s option. Before B
communicated his choice to A. object No. 1 had been destroyed, thru A’s fault and object
No. 2 had been destroyed by a fortuitous event. B may
A. Demand object No. 3 only as it is still available.
B. Demand the price of object No. 1 only plus damages because it was destroyed by A’s
fault.
C. Demand the value of object No 2 as the right of choice belongs to B.
D. Demand either object No. 3 or the price of object No. 1 plus damages.

104. Any of the debtors is bound to render compliance of the entire obligation.

A. alternative C. joint
B. facultative D. solidary

105. In a joint obligation, joint means any of the following, except

A. pro-rata C. mancomunada simple

B. proportionate D. individually and collectively

106. In Facultative obligations, if substitution has been made, which of the following is false?

A. The obligation is extinguished.

B. The loss of the original prestation is immaterial.
C. The obligation is converted into a simple obligation.
D. The obligation ceases to be facultative.

107. Using the preceding number, and the substitute is lost by a fortuitous event, which is true?

A. The obligation is extinguished.

B. The debtor is liable for damages.
C. The original prestation must be given.
D. The debtor must give another object which is equally satisfactory.

108. Using the preceding number, but the substitute is lost due to debtor’s fault, which is true?

A. The obligation is extinguished.

B. The debtor is liable for damages.
C. The original prestation must be given.
D. The debtor must give another object which is equally satisfactory.

109. Instances where the law imposes solidary liability, except

A. obligations arising from tort.

B. obligations of bailees in commodatum.
C. liability of principals, accomplices and accessories of a felony.
D. liability of partners arising out of a contract.

110. This will result to a solidary liability

A. vitiated consent on the part of one of the debtors.
B. insolvency of one of the debtors.
C. default on the part of one of the debtors.
D. quasi-delict commited by one of the partners acting in the ordinary course of
business.

111. Where only one prestation has been agreed upon, but the obligor may render another in
substitution, the obligation is

A. Alternative C. Conjoint
B. Facultative D. Solidary

112. Where two or more prestations have been agreed upon, and all of them must be performed,
the obligation is

A. Alternative C. Conjoint
B. Facultative D. Solidary

113. A and B are solidary debtors of C and D, solidary creditors, to the amount of P1,000. C can
demand

A. P1,000 from A or P1,000 from B C. P500 from A or P500 from B

B. P1,000 from A and P1,000 from B D. P500 from A and P500 from B

114. A and B solidary debtors of C and D, joint creditors, to the amount of P1,000 – C can
demand

A. P1,000 from A or P1,000 from B C. P500 from A and P500 from B

B. P500 from A or P500 from B D. P250 from A and P250 from B

115. A and B joint debtors of C and D, solidary creditors, to the amount of P1,000 – C can
demand

A. P1,000 from A or P1,000 from B C. P500 from A and P500 from B

B. P500 from A or P500 from D. P250 from A and P250 from B

116. A and B are joint debtors of C and D, joint creditors, to the amount of P1,000 – C can
demand

A. P500 from A or P500 from B C. P250 from A and P250 from B

B. P250 from A or P250 from B D. P500 from A and P500 from B

117. This is synonymous to joint obligation

A. Joint and several C. Individually and collectively

B. In solidum D. Mancomunada simple

118. This is synonymous to solidary obligation

A. Pro-rata C. Proportionate
B. Mancomunada D. Juntos o separadamente

119. A, B and C are joint debtors of D for P3,000.If A is insolvent, how much should B pay D?

A. P1,000 C. P2,000
B. P1,500 D. P3,000

120. In 2007, A, B and C bound themselves in solidum to give D P9,000 subject to the
following conditions: A will pay in 2007, B, if D passes the 2008 CPA board exams and C
will pay in 2009. In 207, how much can D demand from C?

A. P9,000 C. P3,000
B. P6,000 D. P0

121. A, B and C are solidary debtors of D for P3,000. D remitted C’s share. A therefore paid
later only P2,000. A can recover reimbursement from B in the amount of

A. P1,000 C. P500
B. P1,500 D. P0

122. Using the preceding number, if B is insolvent, A can recover from C the amount of

A. P1,000 C. P500
B. P1,500 D. P0

123. A, B and C are solidary debtors of D for P1,000. D remitted the entire obligation when A
offered to pay. A can demand reimbursement from B in the amount of

A. P1,000 C. P333
B. P500 D. P0

124. A, B and C are solidary debtors of D for P3,000 but A was incapacitated to give his consent
as he was a minor. If D sues B, how much will B be liable for?

A. P3,000 C. P1,000
B. P2,000 D. P 0

125. Using the preceding number, if D sues A, how much will A be liable for?
A. P3,000 C. P1,000
B. P2,000 D. P 0

126. A is indebted to solidary creditors B, C, and D, for P90,000. Without the knowledge of B
and C, D remitted the obligation of A, as a result,

A. The obligation of A to pay P90,000 is extinguished.

B. The obligation is not extinguished because there is no consent from B and C.
C. The obligation is extinguished only up to P30,000.
D. The obligation is extinguished up to P60,000.

127. A, B and C borrowed P6,000 from D and E, payable in 3 months with A giving in pledge
her diamond ring as security for the amount borrowed. How much can E collect from C?

A. P1,000 C. P3,000
B. P2,000 D. P6,000

128. A is obliged to give B her college ring. If she fails to do so, she must give P10,000. This is

A. Alternative obligation
B. Conjoint obligation
C. Facultative obligation
D. Obligation with a penal clause

129. Where the penalty takes the place of indemnity for the damages and for the payment of
interest.

A. Where there is stipulation to the effect that damages or interest may still be recovered,
despite the presence of the penalty clause.
B. When the debtor refuses to pay the penalty imposed in the obligation.
C. When the debtor is guilty of fraud or dolo in the fulfillment of the obligation.
D. Where there is breach of the obligations.

130. This is an obligation with a resolutory obligation.

A. I’ll give you P10,000 if you pass the 2009 CPA board examination.
B. I’ll give you my car now, but should you fail in any of your subjects, your ownership
will cease and it will be mine again.
C. I’ll give you P10,000 on December 31, 2009.
D. I’ll give you P10,000 if A dies of TB.

131. I - If the condition is potestative on the part of the debtor, the obligation is void.
 II - If the condition is potestative on the part of the creditor, the obligation is valid.

A. True; true C. False; true

B. True; false D. False; false

132. A owns a house rented by B. A sold the house to C where C agreed to pay the balance of
the purchase price as soon as B leaves the premises. It was further agreed that C will take
care of seeing to it that B vacates the house. Which is correct?

A. The contract is void because it is potestative on the part of C.

B. The contract is void because the consent of B was not obtained.
C. The contract is valid because the condition is mixed.
D. The contract is valid if B is willing to vacate the premises.

133. I – The condition that some event happens at a determinate time shall extinguish the
obligation as soon as the time expires or it has become indubitable that the event will
not take place.

II – The condition that some event will not happen at a determinable time shall render the
obligation effective from the moment the time indicated has elapsed, or it has become
evident that the event cannot occur.

A. True; true C. False; true

B. True; false D. False; false

134. I - A father promised to give his son if the son will marry B this year. If by the end of the
year, B is already dead or the son has not married B, the obligation to give a car is
effective and demandable.
II - A father promised to give his daughter a car if the daughter will not marry her
boyfriend earlier than December 31,2009. If by December 31, 2009, has not yet
married her boyfriend, or if prior thereto, her boyfriend has died, the obligation is
extinguished.

A. True; true C. False; true

B. True; false D. False; false

135. I - Obligations with a resolutory period take effect at once, but terminate upon arrival of
the day certain.
II - Obligations with a resolutory condition take effect at once, but terminate upon
happening of the condition.

A. True; true C. False; true

B. True; false D. False; false

136. A borrowed money from B and pledged her ring as security. It was agreed that A was to pay
the money loaned with interest at the end of one year. Before the expiration of the one-year
 period.

A. A may compel B to accept her payment.

B. A may be allowed to pay B, if B consents.
C. A may compel B to accept her payment because the period is deemed for the benefit of
A.
D. B may refuse A’s payment as the period is deemed for the benefit of B.

137. The debtor shall lose every right to make use of the period, except

A. When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt.
B. When he does not furnish the creditor the guarantees or securities which he has promised.
C. When through fortuitous events or by his own acts the guaranties or securities have
been impaired, unless he immediately gives new ones equally satisfactory.
D. When the debtor violates any undertaking in consideration of which the creditor agreed to
the period.

138. I - “We promise to pay” when there are two or more signatures=joint liability

II – “ I promise to pay” when there are two or more signatures= solidary liability

A. True; true C. False; true

B. True; false D. False; false

139. A oblige himself to pay B P100,000 in 30 days plus a penalty of P10,000 if A fails to pay
the obligation in due time. A failed to pay the obligation in 30 days, B can demand from A

A. The principal of P100,000 plus P10,000 penalty.

B. The principal of P100,000 plus P10,000 penalty plus legal interest.
C. The principal of P100,000 plus P10,000 penalty, plus legal interest, plus damages.
D. The principal of P100,000 plus legal interest, plus damages.

140. The creditor is entitled to recover damages and interest in addition to the penalty stipulated

1. When the debtor refuses to pay the penalty.

2. When the debtor is guilty of fraud in the fulfillment of the obligation.

A. True; true C. False; true

B. True; false D. False; false

141. Action where a person in possession of certain property may bring an action against the
conflicting claimants to compel them to interplead and litigate their several claims among
themselves.
A. Garnishment C. Injunction
B. Interpleader D. Attachment

142. A judicial process by virtue of which a person is generally ordered to refrain from doing
something

A. Garnishment C. Injunction
B. Interpleader D. Attachment

143. Where a property is alienated to the creditor in satisfaction of a debt in money.

A. Dation in payment C. Application of payment

B. Payment by cession D. Consignation

144.Where a debtor transfers all his properties not subject to execution in favor of his creditors
so that the latter may sell them and thus apply the proceeds to their credits.

A. Dation in payment C. Application of payment

B. Cession D. Consignation

145. The act of offering the creditor what is due him together with a demand that the creditor
accept the same.

A. Application of payment C. Datio in solutum

B. Tender of payment D. Cession

146. The act of depositing the thing due with the court or judicial authorities whenever the
creditor cannot accept or refuses to accept payment.

A. Tender of payment C. Application of payment

B. Consignation D. Datio in solutum

147. The meeting in one person of the qualities of creditor and debtor with respect to the same
obligation.

A. Confusion C. Novation
B. Compensation D. Condonation

148. When two persons on their own right are creditors and debtors of each other

A. Confusion C. Novation
B. Compensation D. Condonation

149. This is not necessary in order that compensation may prosper.

A. That the two debts are both due.

B. That the two debts be liquidated and demandable.
C. That there be retention or controversy commenced by third persons and
communicated in due time to the debtor.
D. Both debts consists in a sum of money, or if the things due are consumable, they be of the
same kind, and also of the same quality if the latter has been stated.

150. Compensation cannot take place, except

A. When one debt arises from the obligations of a depositary.

B. When one debt arises from the obligations of a bailee in commodatum.
C. When one debt arises because of a claim for support due to gratuitous title.
D. When one debt arises from a bank deposit.

151. The substitution or change of an obligation by another, which extinguishes or modifies the
first

A. Confusion C. Novation
B. Compensation D. Consignation

152. Novation which changes the object or the principal condition of the obligation

A. Real C. Mixed
B. Personal D. Partial

153. Novation which changes the parties to the obligation

A. Real C. Mixed
B. Personal D. Partial

154. Expromission, delegacion or subrogating a third person in the right of the creditor.

A. Real C. Mixed
B. Personal D. Partial

155. Novation which changes the object and parties of the obligation.

A. Real C. Mixed
B. Personal D. Partial

156. Substitution of debtor where the initiative comes from a third person.

A. Delegacion C. Subrogation
B. Expromission D. Novation

157. Substitution of debtor where the initiative comes from the debtor.
A. Delegacion C. Subrogation
B. Expromission D. Novation

158. The transfer to a third person of all the rights appertaining to the creditor.

A. Delegacion C. Subrogation
B. Expromission D. Novation

159. Legal subrogation is presumed in the following. Which is not correct?

A. When a third person, not interested in the obligation, pays with the approval of the
creditor.
B. When a creditor pays another creditor who is preferred, even without the debtor’s
knowledge.
C. When a third person, not interested in the obligation, pays with the express or tacit
approval of the debtor.
D. When, even without the knowledge of the debtor, a person interested in the fulfillment of
the obligation pays, without prejudice to the effects of confusion as to the latter’s share.

160. I - Proof of actual damages suffered by the creditor is not necessary in order that the
penalty previously agreed upon may be demanded.

II – Proof of actual damages suffered by the creditor is not necessary in an obligation with
a penal clause.

A. True; true C. False; true

B. True; false D. False; false