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Section: _______________________________

Mid Term Exam – Obligation and Contracts - May 2020

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1. This obligation is demandable at once:

a. pure obligation
b. obligation subject to a resolutory condition
c. obligation with an in diem period
d. all of the above

2.In the following cases, the debtor loses the right to use the period in which case the obligation becomes
immediately demandable. Choose the exception:
a. When after the obligation is contracted, the debtor becomes insolvent but he gives a collateral
security or guaranty.
b. When he fails to furnish the collateral security that he has promised.
c. When the collateral is impaired whether through his fault or by fortuitous event.
d. When the debtor attempts to abscond.
e. None of the above.

3. There is no legal delay in this kind of obligation?

a. Obligation to deliver a determinate thing
b. Obligation to deliver a generic thing
c. Positive personal obligation
d. Obligation not to give

4. The following are obligation arising from law, except?

a. 13th month pay law
b. Obligation of the employer under the workmen compensation act
c. Duty of the husband and wife when they enter into contract of marriage
d. Obligation under the collective bargaining agreement

5. This are the reason why the obligation exists?

a. The obligee
b. Passive subject
c. Legal tie
d. Object

6. It is the invasion of a legal right

a. Injury c. Damage
b. Damages d. Answer not given
7. Which of the following obligation is void?
a. Obligation subject to condition precedent and the fulfillment of condition depend upon the sole
will of the debtor.
b. Obligation subject to condition precedent and the fulfillment of condition depend upon the will of
the creditor.
c. Obligation subject to condition subsequent and the fulfillment of condition depend upon the sole
will of the debtor.
d. Obligation subject to condition subsequent and the fulfillment of condition depend upon the will
of the creditor.

8. A owes B either 100 sacks of rice or 100 sacks of corn or 100 sacks of sugar. In the given set of facts,
which of the following statement is not correct?
a. The obligation of A to B is alternative
b. The right to choose object to be delivered belong to A
c. A may deliver either deliver the whole sacks of rice, corn or sugar at his option.
d. A may compel B to receive a combination of a rice, corn or sugar as long as the performance is
complete.

9. It is an intentional evasion of the faithful performance of the obligation.

a. Negligence c. Delay
b. Fraud d. Mistake

10. D and C agreed that prior to the delivery of D’s only dog name Brownie, D should keep it in the dog
house, feed it four times a day, give it a bath six times a week and make it stroll every morning for at least
two hours. D should therefore, take care of Brownie:
a. with ordinary care only
b. according to stipulation
c. with extraordinary diligence of a good father of the family.
d. with the proper diligence of a good father of the family

11. This obligation is not presumed?

a. Obligation arising from law
b. Obligation arising from contract
c. Obligation arising from quasi contract
d. Obligation arising from delict

12. Which of the following statement is not correct?

a. Every obligation whose performance does not depend upon a future or uncertain event, or upon a
past event unknown to the parties, is demandable at once.
b. When the debtor binds himself to pay when his means permit him to do so, the obligation is
conditional.
c. Every obligation which contains a resolutory condition shall also be demandable, without
prejudice to the effects of the happening of the event.
d. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those
already acquired, shall depend upon the happening of the event which constitutes the condition.

13. The following are the civil liability under the revised penal code, except
a. Restitution
b. Reparation of the damage caused
c. Indemnification for consequential damages
d. Imprisonment

14. A, B, and C jointly and severally borrowed from X P90,000. The obligation is classified as:
 a. Joint d. Delict
b. passive solidarity e. Quasi-d
c. active solidarity

15. The distinction between alternative obligation and facultative obligation is that in facultative subrogation:
a. The right of choice is always belong to the debtor
b. There are two or more object which are due but the performance of one is sufficient to
extinguished obligation
c. The loss of one object by fortuitous event does not extinguish obligation.
d. The right of choice as a rule is given to the debtor unless it is expressly granted to the creditor.

16. Which of the following is not a primary classification of obligations according to the New Civil Code?
a. Pure and conditional
b. Obligation with a period
c. Determinate and Generic
d. Obligation with a penal clause

17. The following are all factors vitiating consent, except

a. Mistake c. Intimidation
b. Negligence d. Fraud

18. Which of these obligations is real in character?

a. To paint a house c. To write a book
b. To repair a car d. Answer not given

19. D borrowed from C P5,000,000 promising to pay upon the sale of his house and lot at 123 Rizal
Avenue, Manila. The obligation of D to C is:
a. an obligation with a period
b. an obligation with a potestative condition the fulfillment of which solely depends on the will of
the debtor and therefore void
c. C can collect only when D is able to sell the house and lot
d. only the condition is nullified, but not the obligation in which case C can collect even if the
house and lot is not sold.

20. A, B and C borrowed from T, W, X, Y and Z P90,000. come maturity date, T can collect from A:
a. P90,000 d. P6,000
b. P30,000 e. None of the above
c. P10,000

D binds himself to pay C P30,000 when his means permit him to do so. Said obligation is:
a. a conditional obligation
b. an obligation with a period
c. a pure obligation
d. none of the above

21. D is under obligation to pay C P500,000 on December 15, 2019. Before due date, D wants to pay C
P500,000 but the latter refuses to accept because the obligation is not yet due. Decide,
a. D can compel C to accept payment because when an obligation is with a period, said period is
for the benefit of the debtor only.
b. C can refuse to accept payment because when an obligation is with a period, the benefit is only
for the creditor.
 c. C can refuse to accept because when an obligation is with a period, said period is presumed to
be for the benefit of both debtor and creditor.
d. Correct answer not indicated.

22. Payment by third person are presumed for the benefit of the creditor in the following cases, except:
a. Ratification
b. Estoppel
c. Subrogation
d. Determinacion

23. It is the gratuitous abandonment by the creditor of his right against the debtor.
a. Abandonment
b. Remission
c. Novation
d. Dation en pago

24. Dolores borrowed P15,000.00 from Consuelo. On due date, Dolores was not able to pay but she promised
to give Consuelo a specific ring, a specific bracelet, or a specific necklace, in payment of the debt.
Consuelo accepted the offer of Dolores.
How was the obligation of Dolores to pay P15,000.00 extinguished?
a. By compensation.
b. By confusion.
c. By novation
d. By condonation.
25. Which of the following is not is not a mode of extinguishing an obligation?
a. Loss of specific things
b. Confusion
c. Condonation
d. Quasi delict

26. A thing is loss in the following cases. Which is the exception?

a. When the object is perishes
b. When the object disappear.
c. When the object goes out of commerce
d. When the object is diminish its value

27. Strictly speaking, the following are special modes of payment, except:
a. dacion en pago
b. application of payment
c. payment by cession
d. tender of payment and consignation

28. D is under obligation to deliver to C either a cow or a carabao or a horse. Due to the fault of D the
cow, the carabao and the horse are lost in that order. The obligation of D is to pay damages to C:
a. On the basis of the value of the cow.
b. On the basis of the value of the carabao.
c. On the basis of the value of the horse or the last thing that was through his fault.
d. On the basis of the value of any of the animals due at the choice of D.

29. A, B and C borrowed P90,000 from X, Y and Z. X can hold liable B for:
a. P90,000 d. P20,000
b. P30,000 e. Correct answer not given
 c. P10,000

30. A, B and C are jointly and severally indebted to X, Y and Z in the amount of P90,000. The above
obligation is:
a. Joint d. mixed solidarity
b. passive solidarity e. None of the above
c. active solidarity

31. The principle that "No one shall be unjustly enriched or benefited at the expense of another " is the
basis of:
a. Contracts c. Delicts
b. Quasi-contracts d. Quasi-delicts

32. An obligation with a period:

a. D will pay C P1,000.00 X dies.
b. D will pay C P1,000.00 when X dies of TB.
c. D will pay C P1,000.00 when he finishes his course in Business Administration.
d. None of the above

33. A, B and C borrowed jointly and severally from X, Y and Z P90,000 payable on December 15, 2002.
At the time of the transaction A was only 16 years old, while on August 19, 2001 X gave an extension
of time for C to pay on July 20,2004. On December 15, 2002, how much can X collect from B?
a. P90,000 because the obligation is solidary.
b. P60,000 because B can present as against X the defense of minority on the part of A, but only
for P30,000.
c. P30,000 because B can present as against X the defense of minority on the part of A and the
extension of time in favor of C amounting to P30,000 each.
d. P10,000 only because the obligation is joint.

34. D will support C until end of this year is an obligation with:

a. a suspensive condition
b. a resolutory condition
c. an EX DIE period
d. an IN DIEM period

35. A condition which, if imposed on an obligation, will be disregarded and will, therefore, make the debt
immediately demandable:
a. If X passes the CPS examinations
b. If X swims across the Pacific Ocean
c. If X does not swim across the Pacific Ocean
d. If X kills Y

36. A, B and C obligated themselves to deliver to X specific car worth P300,000. On due date, said car is
not delivered to X due to the fault of A causing a P9,000 damage to the former. In this case:
a. X can compel any of A,B and C to pay P309,000.
b. The obligation of A, B and C is presumed to be joint and therefore, X cam compel A, B and C
to each deliver 1/3 of the car plus damages of P3,000.
c. The obligation of A, B and C is presumed to be joint, but the action is converted into one for
damages where X can collect from A , B and C P103,--- each.
d. The obligation of A, B and C is presumed to be joint but the action is converted into one for
damages where X can collect from A P109,000 and from B and C P100,000 each.
37. D binds himself to deliver to C a specific jeep and specific car. This is:
a. An alternative obligation
b. A facultative obligation
c. Both of (a) and (b)
d. None of the above

38. Insolvency of the debtor is required in :

a. Dation in payment
b. Payment by cession
c. Tender of payment and consignation
d. Application of payment

39. Delivery of property in satisfaction of a debt in money is:

a. ADJUDICACION EN PAGO
b. Payment by cession
c. Consignation
d. None of the above

40. D owes C P1,000.00 C tells D that he is willing to forego collection if the latter will just give him his
tape recorder. D consents and gives C the tape recorded. D's obligation is extinguished by:
a. Payment c. Confusion
b. Condonation d. Compensation

41. When two persons in their own right, are debtors and creditors of each other, there is
a. Confusion c. Novation
b. condonation d. compensation

42. When the characters, of debtor and creditor are merged in the same person with respect to the same
obligation, there is:
a. Remission c. Novation
b. compensation d. None of the above

43. A, B and C jointly and severally obligated themselves to deliver to X a determinate car worth
P600,000. On due date, because of B's fault, said car was not delivered causing a P9,000 damage to
X. B is insolvent.
a. X can collect from A, B and C P203,000 each.
b. X can collect from A the sum of P600,000 only because he is not the party at fault but can
recover reimbursement from C in the amount of P309,000.
c. X can collect from C the whole of P609,000 and collect reimbursement from A P200,000 only.
d. X can collect from C the whole amount of P609,000 and collect reimbursement from A in the
amount of P304,500.

44. The delivery of a private document evidencing a credit, made voluntarily by the creditor to the debtor
even before the debt is paid, extinguishes the obligation by:
a. Express remission c. Compensation
b. Implied remission d. Novation

45. Personal novation:

a. Substitution of debtor
b. Subrogation of a third person in the place of the creditor
 c. Both of (a) and (b)
d. None of the above

46. When a third person of his own accord and even without the knowledge of the original debtor
assumes the obligation with the consent of the creditor:
a. Expromission c. Subrogation
b. Delegacion d. Real novation

47. D owes C. Later, the parties agreed that instead of D paying C, he will just pay X. This is an instance
of:
a. Expromission c. Convertional subrogation
b. Delegacion d. Legal subrogation

48. D borrowed from C P100,000 with an agreement that upon failure to pay on due date, a penalty of
20% shall be imposed. On due date, the P100,000 was not paid. C can collect from D:
a. P100,000 only
b. P100,000 plus penalty
c. P100,000 plus penalty plus interest at 12%
d. P100,000 plus penalty plus interest plus damages

49. In the following cases, interest or damages can be collected by the creditor from the debtor in addition
to the penalty agreed upon.
a. If there is a stipulation to that effect.
b. If the debtor defaults in the payment of the penalty.
c. Where the debtor commits fraud in the fulfillment of the obligation.
d. All of the above
e. None of a, b, and c

50. When a creditor pays another creditor who is preferred, even without the debtor's knowledge, there is:
a. Real novation c. Delegacion
b. Expromission d. Legal subrogation

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

a. Contracts c. Law.
b. Quasi-contracts. d. Prestation.

52. An obligation based on positive law and give right to enforce its performance.
a. Moral obligation c. Legal obligation
b. Civil obligation d. Natural obligation

53. Which of the following is a primary classification of obligations under the Civil Code?
a. Real and personal obligations
b. Joint and solidary obligations
c. Unilateral & bilateral obligations
d. Civil and natural obligations

54. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors
a. Accion reinvindicatoria
b. Accion subrogatoria
c. Accion pauliana
d. Accion quanti-minoris
55. Which of the following is an obligation with a period for the benefit of the debtor and the creditor?
a. Payable when "you like"
b. Payable when debtor's means permit him to do so
c. Payable on or before December 25, 2006
d. Payable "if I like"

56. One of the following is a void obligation:

a. D is obliged to give C P5,000.00 if C does not go to the moon.
b. D is obliged to give C P5,000.00 if D goes to Baguio
c. D is obliged to give C P5,000.00 if C goes to Baguio
d. D is obliged to give C P5,000.00 if D wins first prize in the sweepstakes on a ticket that he
had already purchased.

57. On July 1, 2019, D obliged himself to give C a specific car if C will not marry X on or before
December 31, 2019. The condition of the obligation is a:
a. positive condition.
b. negative condition.
c. divisible condition.
d. impossible condition.

58. D is obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as
substitute. Which of the following statements is true?
a. If the ring is lost through a fortuitous event before substitution, the obligation is extinguished.
b. If the bracelet is lost through a fortuitous event before substitution, the obligation is extinguished.
c. If the ring is lost through a fortuitous event after substitution, the obligation is extinguished.
d. If the ring is lost through the debtor's fault after substitution, the debtor shall pay damages.

59. A, B and C are joint and several liable to D amounting to P900,000. D allows C an extension of two
years within which to pay his portion of the indebtedness. In this case:
a. D can compel A or B to pay him the entire P900,000.
b. D can compel A or B or C to pay him P600,000.
c. D can demand only P300,000 each from A and B.
d. D can compel only A or B to pay him P600,000.

60. A, B, C, D, E and F were solidary debtors of G to the amount of P270,000. Later in an agreement
with B, C, D, E and F, the debt was reduced by G to P225,000. G sued A. Because of the partial
remission, A was made to pay only P225,000. How much can A recover from the other solidary
debtors?
a. 1/5 of P270,000 from each plus interest from the time of payment.
b. 1/5 of P225,000 from each plus interest from the time of payment.
c. 1/6 of P270,000 from each plus interest from the time of payment.
d. 1/6 of P225,000 from each plus interest from the time of payment.

61. An obligation wherein various things are due, but the payment of one of them is sufficient to
extinguish the obligation is called:
a. Simple obligation c. Conjoint obligation
b. Alternative obligation d. Facultative obligation

62. Which obligation is not valid?

a. "I promise to give you P100,000 on December 25, 2006"
 b. "I promise to give you P100,000 if I go to Sariaya, Quezon this weekend".
c. "I Promise to give you P100,000 if your patient dies".
d. "I promise to give you P100,000 if you pass the May 2006 CPA Board Examination."

63. A, B and C solidary owe X P300,000. X remitted C’s share. A, therefore, paid later only P200,000.
Assuming that B is insolvent.
a. A can compel B to pay him P100,000.
b. A can recover reimbursement from C amounting to P50,000
c. A can recover reimbursement from C amounting to P100,000.
d. A can recover nothing from C at this moment and to wait until B recover from financial
distress.

64. In the following cases, the debtor shall lose the benefit of the period – choose the exception.
a. When after the contraction of the obligation the debtor becomes insolvent but he gives collateral
security or guaranty.
b. When the debtor fails to furnish the collateral securities which has promised.
c. When the collateral security is impaired whether through the debtor’s fault or by fortuitous
events.
d. When the debtor attempts to abscond.
e. None of the above.

65. Under a contract executed on November 1, 2003, D obliged himself to give a specific horse to C on
December 10, 2003. On December 8, 2003, C demanded the delivery of the horse but D did not
comply. The following day, the horse was struck by lightning and died instantly.
a. The obligation of D is extinguished because the loss is due to fortuitous event and D was not in
default.
b. The obligation of D is not extinguished because D can deliver another horse.
c. The obligation of D is not extinguished because D was in default.
d. The obligation of D is not extinguished because the demand was not made on due date.
66. D borrowed from C P1,000,000 mortgaging in favor of the latter his house and lot. Said obligation is
due December 15, 2007. On July 20,2006 the house was hit by a lighting and was destroyed. In this
case:
a. C can validly demand payment from D on July 20, 2006 because the latter losses the right to
make use of the period upon the impairment of the collateral.
b. C can validly demand payment from D on July 20,2006 unless D gives another collateral
equally satisfactory.
c. C cannot collect on July 20,2006 because in the nature of an obligation with a period the debt
can only become demandable upon the arrival of the period.
d. The obligation of D to C is extinguished because of the loss of the collateral through a
fortuitous event.

67. A1, A2 and A3 oblige themselves solidarily to give C a specific car valued P12,000. On the due date,
C demanded delivery but the debtors failed to deliver. The next day, while A1 still in possession of
the car, it got lost due to fortuitous event. The right of C is:
a. None, obligation is totally extinguished.
b. Proceed against any of the debtors for the value and damages.
c. Proceed against A1 only, because he is the one in possession at the time it was lost.
d. Proceed against A2 or A3 but only P4,000 each.

68. The debtor shall lose the right to make use of the period in the following cases, except:
a. when he becomes insolvent.
 b. when he violates any undertaking in consideration of which the creditor agreed to the period.
c. when the debtor attempts to abscond.
d. when he does not furnish any guaranty or security to the creditor.

69. When the obligation consists in the delivery of a generic thing whose quality and circumstances have
not been agreed upon:
a. The creditor can demand a thing of superior quality
b. The debtor can deliver of inferior quality
c. The Debtor can deliver of superior quality even against the will of the creditor.
d. The purpose and other circumstances shall be taken into consideration in determining the quality
of the object to be delivered.

70. 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 of the following statements is correct?
a. The novation is void because the original obligation is void. Hence, C cannot demand the
delivery of 5 sacks of rice from D.
b. The novation is valid because the new obligation is valid. Hence, C can demand the delivery of 5
sacks of rice from D.
c. The original obligation although void is validated by the new obligation. Hence, C can demand
the delivery of 5 sacks of rice from D.
d. The new obligation is only voidable because D had not yet performed the original obligation at
the time of the novation. Accordingly, the new obligation is binding and C may demand the
delivery of 5 sacks of rice from D until the new obligation is annulled by a proper action in court.

71. The following statements pertain to either payment by cession or dacion en pago.
I. The debtor is insolvent.
II. Ownership of the thing/s is transferred to the, creditor/s.
III. Plurality of creditors is required.
IV. Obligations are totally extinguished as a rule.
a. Statements I and IV pertain to payment by cession.
b. Statements I and III pertain to dacion en pago.
c. Statements II and IV pertain to dacion en pago
d. Statements III and IV pertain to payment by cession.

72. Andy owes Baby P200,000.00 demandable and due on September 10, 2009. Baby, on the other hand,
owes Andy P200,000.00 demandable and due on or before September 30, 2009. If Baby claims
compensation on September 10, 2009, can Andy rightfully oppose?
a. No. Baby who was giving the benefit of the term, may claim compensation because he could
then choose to pay his debt on September 10, 2009 which is actually "on or before September
30, 2009."
b. Yes, Andy can properly oppose because for compensation to take place, mutual consent of
both parties is necessary.
c. Andy can properly oppose and if Baby still refuses to accept his payment made on September
30, 2009, Andy can deposit his payment in court.
d. None of the above.

73. Toblerone is a lessee of Codsbury building. Under the lease contract, Toblerone must pay the
monthly rental of P25,000 to Codsbury at the latter’s office within the first 5 days of the month. On
the sixth month of the lease, Toblerone went to Codsbury’s office to pay the rental but he was told by
Goya, an employee to Codsbury, that the latter was confined at the hospital. Goya told Toblerone that
he could entrust payment to him. Hershey, a son of Codsbury, who happen around, however,
 demanded that Toblerone must pay to him claiming that as Codsbury’s son, he was the one
authorized to receive the payment. Give where you do not know to whom you will give your
payment, which of the following modes of payment would you avail yourself of if you were
Toblerone?
a. Dacion en pago c. Consignation
b. Payment by cession d. Application of payment

74. The debtor who cedes or assigns his property to his creditor in payment of his debt shall be released
from his obligation.
a. To the extent of the net proceeds of the thing leased.
b. To the extent allowed by the creditor
c. Only to the extent of the net proceed of the thing assigned
d. Totally extinguished under dation in payment

75. Which of the following is not legal subrogation?

a. When a creditor pays another creditor who is preferred
b. When a third person, not interested in obligation, pays with the approval of the debtor
c. When a third person interested in the obligation, pays even without the approval of the debtor
d. None of them

76. Three of these are characteristics of payment by cession. Which is the exception?
a. complete or partial insolvency
b. more than one debt
c. abandonement of all the debtor's properties except those exempt from execution
d. one debtor, one creditor

77. Bulacan borrowed from Bruho Bank P2,000,000 payable at the end of 5 years. Before maturity, an
extraordinary deflation supervened causing the value of the debt to rise to P5,000,000 on the date of
maturity. On due date, Bulacan must pay Bruho Bank:
a. P2,000,000 c. P800,000
b. P5,000,000 d. P20,000,000

78. Which of the following is not a special mode of payment?

a. Dacion en pago c. Tender of payment
b. Payment by cession d. Answer not given

79. Consignation alone extinguished obligation under the following, except:

a. When the creditor is incapacity to received payment at the time it is due.
b. When without just cause the creditor refuses to give receipt.
c. When there are two or more persons claim the same right to collect.
d. When the debt is already due and demandable.

80. 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. Assume 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 D delegated his debt.
In this case –
a. C can revive D's debt because T's insolvency was already existing at the time that D delegated his
debt.
b. C can revive D's debt whether or not he (D) was aware of T's insolvency since he (D) proposed
the substitution.
c. C cannot hold D liable because his (D's) obligation was extinguished when he was substituted by
T
d. The novation is void because D did not take steps to determine the solvency of T when he (D)
delegated his debt.