1 Obligations Quizzers

OBLIGATIONS QUIZZERS
OBLIGATIONS - DIAGNOSTIC EXERCISES
TEST I — MULTIPLE CHOICE. Select the best answer by writing the letter of your choice.
1. The following are the requisites of an obligation, except:

A. passive subject, debtor or obligor
B. active subject, creditor, or obligee.
C. efficient cause
D. demand.
2. Obligations may arise from any of the following, except:

A. contracts.
B. quasi-contracts.
C. law.
D. prestation.
3. It is the voluntary administration of the property of another without his consent.

A. Negotionzm gestio
B. Solutio indebiti
C. Quasi-delict
D. Contract
4. It is a wrong committed without any pre-existing relations between the parties.

A. Natural obligation
B. Quasi-delict
C. Quasi-contract
D. Crime
5. Unless the law or the stipulations of the parties require another standard of care, every
person obliged to give something is also obliged to take care of it with:
A. extra-ordinary diligence.
B. diligence of a father of a good family.
C. diligence of a good father of a family.
D. good diligence of a father of a family.
OBLIGATIONS QUIZZERS Page 1

6. The creditor has a right that is enforceable against definite passive subject. This right is
known as
A. personal right.
B. real right.
C. natural right.
D. civil right.
7. It is a thing that is particularly designated or physically segregated from all others of the
same class.
A. Generic thing
B. Indeterminate thing
C. Determinate thing
D. Real thing
8. One of the following is a determinate thing. Which is it?

A. a cow.
B. a horse.
C. a Toyota car with engine no. 12345, body no. 34890 and plate no. ABC 123.
D. a ring with diamond embellishment.
9. Demand must be made on the due date of the obligation in order for delay to exist in one
of the following cases. Which is it?
A. When it was stipulated by the parties that demand need not be made.
B. When the law provides that demand need not be made.
C. When the obligation does not indicate whether demand must be made or not on
due date.
D. When time is of the essence of the contract.
10. This refers to delay on the part of the creditor.

A. mora solvendi ex re
B. compensatio morae
C. mora solvendi ex personae
D. mora accipiendi
11. There shall be no liability for loss due to fortuitous events in one of the following cases.
Which is it?

A. When the debtor delays.
B. When the parties so stipulated that there shall be liability even in case of loss due to
fortuitous events
C. When the nature of the obligation requires the assumption of risks.
D. When the obligation is to deliver a determinate thing and there was no stipulation
as to the liability of the debtor in case of loss due to fortuitous events.
12. The following are the remedies of the creditor to pursue his claims against the debtor,
except to:
A. pursue the property owned and in possession of the debtor.
B. exercise all the rights and bring all the actions of the debtor (accion subrogatoria).
C. impugn the acts which the debtor may have done to defraud his creditors (accion
pauliana).
D. compel the debtor to perform the service in obligations to do.
13. 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 statements is correct?
A. S can collect from D although D and C did not agree that the credit right will pass on
to the heirs of C.
B. S cannot collect because the credit right is personal to C.
C. S can collect only if D and C agreed that the credit right will pass on the heirs of C.
D. S cannot collect because the law prohibits the transmission of the credit right.
14. D is obliged to give C a specific car if C passes the CPA Licensure Examination. D'S
obligation is an example of:
A. A pure obligation.
B. an obligation with a suspensive condition.
C. an obligation with a resolutory condition.
D. an obligation with a period.
15. One of the following obligations is not immediately demandable.

A. Pure obligation.
B. obligation with a resolutory condition.
C. obligation with an in diem period.
D. obligation with an ex die period.

16. One of the following is a void obligation:
A. D is obliged to give C P5,000,000 if C does not go the moon.
B. D is obliged to give C P5,000,000 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.
17. D is obliged to give C P10,000.00 if X dies. This is an example of:

A. an obligation with a suspensive condition.
B. an obligation with a resolutory condition.
C. an obligation with a period.
D. a pure obligation.
18. When the debtor binds himself to pay when his means permit him to do so, the
obligation is:
A. an obligation with a resolutory condition.
B. a pure obligation.
C. an obligation with a suspensive condition.
D. an obligation with a suspensive period.
19. Whenever a period is designated in an obligation, the said period shall be presumed to
have been established for the benefit of:
A. the debtor.
B. the creditor.
C. both the debtor and the creditor.
D. neither of the parties.
20. The debtor shall lose the right to make use of the period in the following cases, except
when he:
A. becomes insolvent.
B. violates any undertaking in consideration of which the creditor agreed to the period.
C. attempts to abscond.
D. does not furnish any guaranty or security to the creditor.
21. An obligation ceases to be alternative and becomes a simple obligation in the following
cases, except when:

A. the debtor has communicated his choice to the creditor.
B. the right of choice has been expressly granted to the creditor and his choice has been
communicated to the debtor.
C. among the several prestation that are due only one is practicable.
D. three prestation are due but one of them is unlawful or impossible.
22. D is obliged to give C a specific watch, a 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?
A. C may choose the delivery to him of the bracelet, or the price of the watch or the
price of the ring plus damages.
B. C cannot choose the price of the watch or the price of the ring because the said
objects have already been lost.
C. C can only choose to have the bracelet because anyway, D can still perform his
obligation.
D. C can only choose to have delivery of the bracelet or the price of the ring which was
the last item that was lost plus damages.
23. 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.
24. A, B, C and D are obliged to give V, W, X, Y and Z P20,000.00

A. V may collect from A P20, 000.00.
B. V may collect from A P5,000.00.
C. V may collect from A P 1,000.00.
D. V may collect from A P4,000.00.

25. A, B, C and D, joint debtors, are obliged to give V, W, X, Y and Z, solidary creditors,
P20,000.00.
A. V may collect from B P20,000.00.
B. V may collect from B P4,000.00.
C. V may collect from B P5,000.00.
D. V may collect from B P 1,000.00.
26. A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z, joint creditors,
A. V may collect from C P20, 000.00.
B. V may collect from C P4,000.00.
C. V may collect from C P5,000.00.
D. V may collect from C P 1,000.00.
27. A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z, solidary creditors,
P20,000.00.
A. V may collect from D P20, 000.00.
B. V may collect from D P4,000.00.
C. V may collect from D P5,000.00.
D. V may collect from D P 1,000.00.
28. A, 25, B, 35, and C, 17, are solidary debtors of X in the amount of P9,000.00.
A. X may collect from A P9,000.00.
B. X may collect from A P6,000.00.
C. X may collect from A P1,000.00
D. X may collect nothing because the obligation is voidable, C being a minor.
29. The following obligations are divisible, except an obligation:

A. to give definite things.
B. which has for its object the execution of a certain number of days of work.
C. which has for its object the accomplishment of work by metrical units.
D. which by its nature is susceptible of partial performance.
30. In obligations with a penal clause, the creditor as a rule may recover from the debtor in
case of breach the following:
A. the penalty as agreed upon, plus damages and interest.
B. the penalty and damages.

C. the penalty and interest.
D. only the penalty.
31. Consider the following statements:

I. The nullity of the principal obligation carries with it the nullity of the penal clause.
II. The nullity of the principal obligation does not carry with it the nullity of the penal
clause.
III. The nullity of the penal clause carries with it the nullity of the principal obligation.
IV. The nullity of penal clause does not carry with it the nullity of the principal
obligation.
A. Statements I and III are true.
B. Statements I and IV are true.
C. Statements II and III are true.
D. Statements II and IV are true.
32. D borrowed from C P50,000.00. The obligation 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
P50,000.00 believing that D still owed C such amount.
A. T can recover P50,000.00 from D. If D cannot pay, T can foreclose the mortgage on
D'S Toyota car.
B. T can recover nothing from D because he paid C without the knowledge and consent
of D.
C. T can recover P30,000.00 from D. If D cannot pay T can foreclose the mortgage on
D'S Toyota car.
D. T can recover P30, 000.00 from D. If D cannot pay, T cannot foreclose the mortgage
on D’s Toyota car.
33. The following statements concerning payment by cession are true, except one. Which is
it?
A. The creditors become the owners of the properties of the debtor that were ceded to
them.
B. Payment by cession extinguishes the obligations only to the extent covered by the
proceeds of the sale of the debtor's properties.
C. The debtor must be insolvent.
D. Cession affects all the properties of the debtor except those exempts from execution.

34. D obtained from ABC Bank a loan of P12,000,000.00 payable at the end of 10 years.
Before maturity, an extraordinary inflation supervened causing the value of the debt to
fall to P4,000,000.00 on the date of maturity. On due date, D must pay ABC Bank:
A. P12,000,000.00
B. P4,000,000.00
C. P36,000,000.00
D. P3,000,000.00
35. B borrowed from XYZ Bank P2,000,000.00 payable at the end of 5 years. Before maturity,
an extraordinary deflation supervened causing the value of the debt to rise to
P5,000,000.00 on the date of maturity. On due date, B must pay XYZ Bank:
A. P2,000,000.00
B. P5,000,000.00
C. P800,000.00
D. P20,000,000.00
36. The money or currency which the debtor may compel the creditor to accept in payment
of a debt, whether public or private, is known as:
A. notes payable to order.
B. legal tender
C. bill of exchange.
D. mercantile document.
37. The delivery and transmission of ownership of a thing by the debtor to the creditor as an
accepted equivalent of performance is known as:
A. payment by cession.
B. dation in payment.
C. application of payment.
D. Consignation.
38. D owes C the following debts: P6,000.00 due on June 12; P6,000.00 due on June 15;
P6,000.00 due on June 18; and P6,000.00 due on June 20. All debts are unsecured except
the debt due on June 20 which 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
P6,000.00 on June 18 and is ready to pay C, which of the following statements is correct?

A. D may apply his payment of P6,000.00 to any of the debts due on June 12, June 15,
and June 18 since they are all due as of June 18.
B. D may apply his payment only to the debt due on June 20 because it is the most
burdensome to him.
C. D must apply the payment proportionately to the debts due as of June 18 at
P2,000.00 each.
D. D may apply the payment to any of the four debts.
39. The offer made by the debtor to pay his obligation to his creditor is known as:
A. consignation.
B. tender of payment.
C. application of payment.
D. dation in payment.
40. Consignation alone without any tender of payment is sufficient in the following cases,
except:
A. when the creditor is absent or unknown or does not appear at the place of payment
B. when the creditor presents the title to the obligation for collection.
C. when without just cause, the creditor refuses to give a receipt
D. when two or more persons claim the same right to collect.
41. M owes P P10,000.00. The obligation is evidenced by a promissory note. Subsequently; P

assigned the note to A, A to B, B to C, and C back to M. The obligation of M is
extinguished by:
A. compensation.
B. confusion.
C. condonation.
D. The obligation is not extinguished because there was no payment.
42. In order that condonation may extinguish an obligation involving a movable property
whose value exceeds P5,000.00 –
A. It is sufficient that the condonation and the acceptance are in writing, even a private
one.
B. It is required that the condonation and the acceptance be in a public instrument.
C. The delivery of the document evidencing the debt is sufficient since the property is
movable.

D. The condonation and the acceptance may be made orally.
43. One of the following is not a requisite of legal compensation. Which is it?
A. That each one of the obligors be bound principally, and that he be at the same time a
principal creditor of the other.
B. That the two debts be due.
C. That both debts be liquidated and demandable
D. That the debts are payable at the same place.
44. Henry, husband, and Wilma, wife, are legally separated. By order of the court which
decreed the legal separation, Henry is obliged to give a monthly support of P10,000.00 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 of the following statements
is correct?
A. Both debts are extinguished by legal compensation because both are already due.
B. Wilma may claim compensation but not Henry.
C. Henry may claim compensation but not Wilma.
D. Neither one may claim compensation because the debts are not of the same kind.
45. D owes C P 10,000.00 with G as guarantor. C, on the other hand, owes D, P8,000.00. Both
debts are already due but D is insolvent. In this case —
A. C may collect from G P 10,000.00.
B. C may collect from G P2,000.00 because a guarantor can set up compensation as
regards what the creditor owes the principal debtor.
C. C may collect nothing from G because D is insolvent.
D. C may collect P8,000.00 from G.
46. D borrowed P50,000.00 from C. Subsequently, D proposed to C that T would assume his
(D's) debt. C accepted the proposal of D. This substitution of debtor is known as —
A. expromision.
B. delegacion.
C. tradition.
D. dacion en pago.

47. Refer to the facts in No. 46. 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 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 to determine the solvency of T when he
delegated his debt.
48. 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.
49. On July 1, 2015, D obliged himself to give C P50,000.00 if C will marry X on or before
December 31, 2015. The condition of the obligation is a:
A. positive condition.
B. negative condition.
C. joint condition.
D. impossible condition
50. Refer to No. 49. Which of the following statement is incorrect??

A. The obligation of D is demandable if C marries X on or before December 31, 2015.
B. The obligation of D is extinguished if it is already January 1, 2016 and C has not yet
married X.

C. The obligation of D is extinguished on December 2, 2015 if X dies on the said date
and C has not yet married X.
D. The obligation is demandable if C marries X on January 1, 2016.
51. On July 1, 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 a:
A. positive condition.
B. negative condition.
C. divisible condition.
D. impossible condition.
52. Refer to No. 51. Which of the following statements is incorrect?

A. The obligation of D is demandable if C marries X on January 1, 2016.
B. The obligation of D is demandable on December 2, 2015 if X dies on the said date
and D has not yet married X.
C. The obligation of D is demandable if it is already January 1, 2016 and D has not yet
married X.
D. The obligation is demandable if C marries X on December 2, 2015.
53. D owes C P5,000.00. 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.
A. The payment did not extinguish the debt of D to C because it was made without the
consent of D.
B. The payment did not extinguish the debt because it was not made by D himself.
C. The payment is considered valid because it was accepted by the creditor.
D. The payment may be considered valid if T had the intention to be reimbursed.
54. A mode of extinguishing obligations up to their concurrent amount when two persons are
principal debtors and creditors of each other is called:
A. novation.
B. payment.
C. compensation.
D. merger.
55. D owes C P6,000.00. No date for payment was stipulated by the parties.
A. C cannot require D to pay because there is no date for payment.

B. C can require D to pay at any time.
C. D is not liable to C because the obligation is void there being no date of payment.
D. D is not required to pay unless C goes to court and asks the court to fix a period for
the payment.
56. Under a contract executed on November 1, 2015, D obliged himself to give a specific
horse to C on December 10, 2015. On December 8, 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.
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.
57. Which of the following is not considered a conditional obligation?

A. D to pay C P5,000.00 as soon as D has the means.
B. D to pay C P5,000.00 if C marries Y.
C. D to pay C P5,000.00 if C tops the CPA Examinations.
D. D to pay C if X dies of malaria.
58. The distinction between merger and compensation is that in merger:

A. The two debts may be payable at difference places.
B. Two persons are in their own right debtors and creditors of each other.
C. The debtor and creditor may agree on the set-off of debts that are not yet due.
D. The debtor and the creditor refer to only one
59. The passage of time as a mode of acquiring or losing a right including the extinguishment
of an obligation is called:
A. remission.
B. novation.
C. prescription.
D. merger.

60. Legal compensation shall not be proper in three of the following cases. Which is the
exception?
A. Commodatum.
B. Civil liability arising from a criminal offense.
C. Gratuitous support.
D. Bank deposit.
61. Cecilia, the owner of a sari-sari store, purchased several bags of "Dulcita" candy worth
P5,000.00 from Olga, an authorized dealer of the product. On due date, Cecilia, who sells
the candies at P1.00 each, tendered her payment to Olga consisting of 5,000 pieces of
P1.00 coins.
A. Olga may refuse to accept the payment and demand that she be paid in bills.
B. Olga may not refuse to accept the payment because what Cecilia was offering as
payment is money circulated in the Philippines.
C. Cecilia may consign the payment in court if Olga refuses to accept it.
D. The tender made by Cecilia was valid because the P1.00 coins came from her sales
and she had plenty of them.
62. Dominico and Domingo are jointly and severally liable to Crispino for P100,000.00. The
obligation is due on June 30, 2015. On June 25, 2015, Dominico paid the whole amount of
the note to Crispino. If Domingo reimburses Dominico on July 15, 2015, Dominico is
entitled to receive from Domingo:
A. P50,000. 00 plus interest from June 25 to July 15, 2015.
B. P50,000.00 plus interest from June 25 to June 30, 2015.
C. P50,000.00 plus interest from June 30 to July 15, 2015
D. P50,000.00 with no interest because Dominico paid the note before due date.
63. One of the following statements does not pertain to dacion en pago. Which is it?
A. Ownership of the thing is transferred to the creditor.
B. The debtor must be insolvent.
C. It does not affect all the properties of the debtor.
D. It does not require plurality of creditors.
64. One of the following does not apply to payment by Cession. Which is it?
A. Ownership of the debtor's properties is transferred to the creditor.
B. The debtor must be insolvent.

C. It affects all the properties of the debtor except those exempt from execution.
D. There are several creditors.
65. A, B and C are solidarily liable to X for P30,000.00. A pays X the whole amount due. C,
however, is insolvent.
A. A alone will bear the share of C who is insolvent since he (A) made the payment.
B. A can collect from B P10,000.00.
C. A can collect from B P15,000.00
D. A can demand a refund of P10,000.00 from X pertaining to C's share since C is
insolvent.
66. Anna Almeda, Belinda Bersola, and Claudia Cabrera executed the following promissory
note:
"I promise to pay Dolores Dominguez or order the sum of P30,000.00 on June 30, 2015.
(Sgd.) Anna Almeda
(Sgd.) Belinda Bersola
(Sgd.) Claudia Cabrera"
On June 30, 2015, Dolores Dominguez can collect Anna Almeda
A. P10,000.00
B. P30,000.00
C. P20,000.00
D. Nothing, because the note is void since it says "I promise" but was signed by three
persons.
67. One of the following is a valid obligation. Which is it?

A. D promised to give C P50,000.00 if C will not swim across the Pacific Ocean.
B. D promised to give C P50,000.00 if D goes to Tokyo.
C. D promised to give C P50,000.00 if C can fly to the moon.
D. D promised to give C P50,000.00 if C gives him 5 grams of marijuana.
68. An obligation where various prestations are due but the performance of all of them is
required in order to extinguish the obligation is known as:
A. alternative obligation.
B. facultative obligation.
C. conjunctive obligation.
D. simple obligation.

69. A, B and C are solidary debtors of X in the amount of P9,000.00. Subsequently, X

renounced the share of A. A accepted the renunciation of his share. On due date, B paid X
P6,000.00. B demanded reimbursement from C but C is insolvent. In this case:
A. B may demand the payment of P3,000.00 from A.
B. B may not demand any payment from A because the share of A had already been
renounced or condoned.
C. B may demand P1,500.00 from A representing A's share in C's insolvency.
D. B may demand from A P4,500.00 so that their sharing in the total debt is equal.
70. D is indebted to C for P20,000.00 which is due on June 10. C owes D P 15,000.00 which is
due on June 5. On June 8, C assigned his credit rights to T. D gave his consent to the
assignment but did not reserve his right to the compensation. On June 10, how much
may T collect from D?
A. P20,000.00.
B. P15,000.00.
C. P5,000.00.
D. Nothing.
71. On May 1, 2015, D executed a written undertaking obliging himself to deliver 100 sacks of
rice to C on May 31, 2015. On May 28, 2015, C demanded the delivery of 100 sacks of rice
from D but D did not comply. The following day, a fire of undetermined origin destroyed
D's warehouse together with about 500 sacks of rice stored therein and from which D
intended to get 100 sacks of rice for delivery to C.
A. D's obligation to deliver 100 sacks of rice to C is extinguished, the cause of the loss
being a fortuitous event.
B. D's obligation to deliver 100 sacks of rice to C is not extinguished because he can get
100 sacks of rice from other sources.
C. D's obligation to deliver 100 sacks of rice to C is not extinguished because D was in
default.
D. D's obligation is to pay damages because he was in default.
72. On June 1, 2014, Demetrio obtained a loan of P 100,000.00 from Cornelio. The loan,
which is payable on or before June 1, 2015, is secured a chattel mortgage on Demetrio's
brand-new Toyota car with plate number XYZ 123. On February 1, 2015, while Demetrio
was opening the trunk of his car at the parking lot of a grocery store to place the

groceries he had just purchased, three unidentified men approached him and took his car
at gunpoint. He reported the carnapping to the authorities but his car has not been
recovered.
A. Cornelio may demand immediate payment of the loan unless Demetrio gives another
security therefor.
B. Cornelio may demand payment only on June 1, 2015 because Demetrio has the
benefit of the period and the loss of the car was due to force majeure.
C. Cornelio may no longer demand payment since the loan was extinguished by reason
of the loss of the car due to fortuitous event.
D. Cornelio may demand immediate payment even if Demetrio offers another security
because the car is determinate and could not be replaced.
73. The estate of X who died recently, shows, among other documents/ contracts, the
following:
I. A certificate from Harvard University granting a scholarship to X. X was subjected to
exhaustive examinations and interviews before he was granted the scholarship. He
was supposed to start studying at Harvard in 3 months' time.
II. Articles of partnership of XYZ Enterprise showing X as a general partner
III. A stock certificate of DEF Corporation showing X as the owner of 5,000 shares of
stock.
IV. A promissory note amounting to P100,000.00 executed by M in favor of X. The note
is due after 90 days.
Which of the rights of X arising from the said documents/ contracts will be transmitted to
the heirs of X?
A. I and II
B. II and III.
C. III and IV.
D. I and IV.
74. 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.
75. The return of what has been paid by mistake is known

A. solutio indebiti.
B. negotiorum gestio.
C. quasi-delict.
D. natural obligation.
Items 76, 77, and 78 are based on the following information:

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.
76. What kind of obligation is the new obligation of Dolores?

A. Facultative obligation.
B. Compound obligation.
C. Alternative obligation.
D. Simple obligation.
77. How was the obligation of Dolores to pay P 15,000.00 extinguished?

A. By compensation.
B. By novation.
C. By confusion.
D. By condonation.
78. Assume that before Dolores could deliver any of the ring, bracelet or necklace, the ring
and the bracelet were lost successively through the fault of Dolores. In this case:
A. Consuelo may demand the payment of the price of the ring or the price of the
bracelet plus damages, or the delivery of the necklace.
B. Dolores may deliver the necklace to Consuelo without any obligation to pay
damages.
C. Dolores may deliver the necklace to Consuelo with the obligation to pay damages
because the ring and the necklace were lost through her fault.

D. Consuelo may demand the payment of the price of the bracelet which was the last
item that was lost, plus damages.
79. D obtained a loan of P 100,000.00 from C. D used the amount as placement fee for a job
in the Middle East. The loan agreement showed that the loan was payable within one
year with interest at 6% per annum. However, there was no provision saying that the
rights and obligations of the parties would be transmitted to their heirs or successors-in-
interest. Before maturity, D died leaving his son S as heir. Which of the following
statements is correct?
A. C cannot collect from S because no mention was made in the agreement between D
and C that the rights and obligations of the parties would be transmitted to their
heirs.
B. C can collect from S although no mention was made in the agreement that rights and
obligations would be transmitted to the heirs.
C. C cannot collect from S because the obligation is personal to D.
D. C cannot collect from S because the law prohibits the transmission of the obligation.
80. Hilario, husband, and Wynona, wife, are legally separated. By order of the court which
decreed the legal separation, Hilario is obliged to give a monthly support of P20,000.00 to
Wynona payable in advance within the first five days of the month. Wynona owes Hilario
P20,000.00 by way of loan. On the other hand, Hilario has not yet given Wynona's
support of P20,000.00 for the preceding month and another P20,000.00 for the present
month. All the debts are already due. Based on the foregoing facts, which of the following
statements is incorrect?
A. If Wynona demands her support for the preceding month, Hilario may set up
compensation as regards the loan that Wynona owes him.
B. If Wynona demands her support for the current month, Hilario may claim
compensation as regards the loan that Wynona owes him.
C. If Hilario demands payment of the loan, Wynona may set up compensation as
regards her support for the preceding month that Hilario owes her.
D. If Hilario demands payment of the loan, Wynona may set up compensation as
regards her support for the current month that Hilario owes her.
81. One of the following obligations is not demandable at once. Which is it?
A. D to give his car to C. No date was fixed by the parties for the date of delivery.
B. D to give his car to C until C completes his course in BS Accountancy.

C. D to give his car to C until X dies.
D. D to give C his car should C enroll in BS Accountancy.
82. D owes C the following debts: P6,000.00 due on January 1; P6,000.00 due on January 15;
P6,000.00 due on January 31; P6,000.00 due on February 15; P6,000.00 due on February
28; and P6,000.00 due on March 15. All the debts are unsecured except the one due on
February 28. The parties stipulated that C may demand payment on or before the due
date of each debt. Assume that today is February 16. D, however, has not yet paid any of
the debts. He has in possession P6,000.00 which he intends to pay to C.
A. D may apply the payment to the debt due on February 28 because it is the most
burdensome to him.
B. D may apply the payment to any of the five unsecured debts.
C. D may apply the payment to any of the four debts that have become due as of today,
February 16.
D. D may apply the payment to all of the debts that have become due as of today,
February 16, proportionately at P1,500.00 each.
83. D made a promise to give a ring to C. Before D could deliver a ring to C, C borrowed D's
ring. After a week, D demanded the return of the ring that he had lent to C. C refused to
return the ring claiming that there was compensation between his obligation to return
the ring of D and D'S obligation to give him a ring. Based on the foregoing facts, which of
the following statements is incorrect?
A. C is entitled to claim compensation.
B. C is not entitled to claim compensation.
C. D may oppose the compensation being claimed by
D. Only D may claim the compensation should C demand the delivery of a ring from him
(D).
84. Maila made a non-negotiable promissory note with Pia as payee. Pia assigned the note to
Aiko, Aiko assigned the note to Bea; Bea assigned the note to Carmina, Carmina assigned
the note to Helen, and Helen assigned it back to Maila.
A. Maila's obligation is extinguished by condonation.
B. Maila's obligation is extinguished by confusion.
C. Maila's obligation is extinguished by compensation.
D. Maila's obligation is not extinguished because the note is not negotiable.

85. Lafuente is a lessee of Oberon's building. Under the lease contract, Lafuente must pay the
monthly rental of P10,000.00 to Oberon at Oberon's office within the first 5 days of the
month in advance. On the sixth month of the lease, Lafuente went to Oberon's office to
pay the rental but he was told by Elcano, an employee of Oberon, that Oberon was
confined at the hospital. Elcano told Lafuente that he could entrust the payment to him.
Santiago, a son of Oberon, who happened to be around, however, demanded that
Lafuente must pay to him claiming that as Oberon's son, he was the one authorized to
receive the payment. Given the situation 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 Lafuente?
A. Dacion en pago
B. Payment by cession
C. Consignation
D. Application of payment
86. D promised to give C 10 sacks of rice when X, C's father dies. The obligation of D to C is:
A. An obligation with a suspensive condition.
B. An obligation with a resolutory condition.
C. An obligation with a period.
D. A pure obligation.
87. D bought a plane ticket for Hong Kong from Wings Travel Company. Later, however, D
cancelled his flight to Hong Kong because of the SARS epidemic in the place. Upon being
informed of the cancellation, Wings Travel told D that D could get the refund of his plane
ticket within two days. In the meantime, D thought of going instead to Australia so he
called Wings Travel to send to him a ticket for Brisbane promising to pay the cost of the
ticket in two days. Assuming that the refund due to D for his unused plane ticket to
Hongkong is of the same amount as the cost of his plane ticket to Australia, D two days
later need not pay Wings Travel by reason of:
A. confusion.
B. novation.
C. compensation.
D. condonation.

88. On a certain year, D was obliged under a contract executed on March 1 to deliver an
agricultural land to C on April 1. D, however, actually delivered the land and the fruits
thereof to C on May 1. C had the right to the fruits of the agricultural land beginning on:
A. March 1
B. April 1.
C. May 1.
D. The period should be fixed by the court so that it can be determined when C is
entitled to the fruits.
89. Refer to the foregoing number. C became the owner of the agricultural land and the fruits
thereof on:
A. March 1.
B. April 1.
C. May 1.
D. The period should be fixed by the court so that it can be determined when C actually
became the owner of the agricultural land and its fruits.
90. The right of C before the delivery, on one hand, and his right after the delivery, on the
other hand, of the agricultural land and its fruits, to him are referred to as:
A. Personal right and real right, respectively.
B. Real right and personal right, respectively.
C. Both are considered a personal right.
D. Both are considered a real right.
91. Assuming that in No. 88, D did not deliver the land and its fruits to C. Instead, he
delivered the same to X, who was in good faith when he acquired the land and its fruits,
on April 30.
A. X is the rightful owner of the land.
B. C is the rightful owner of the land,
C. C has a right of action against X.
D. C cannot ask for damages against D.
92. Which of the following is not a proper remedy for the creditor?
A. To compel the debtor to make the delivery, if the obligation is to deliver a
determinate thing.

B. To ask that the obligation be complied with at the expense of the debtor, if the
obligation is to deliver a generic thing.
C. To compel the debtor to perform the obligation, if the obligation is an obligation to
do.
D. To ask the debtor that what has been done be undone, if the obligation is an
obligation not to do.
93. The delivery to the creditor of mercantile documents such as checks shall produce the
effect of payment:
A. Upon the delivery
B. when they have been cashed.
C. when through the fault of the debtor they have been impaired.
D. when they are deposited in the bank.
94. Which of the following statement concerning delay is incorrect?

A. There is no delay in obligations not to do.
B. Delay, as a rule, exists, when the debtor does not perform his obligation on the date
it is due.
C. Demand, as a rule, is required, in order for delay to exist.
D. When time is of the essence of the contract, delay on the part of the debtor exists
despite the absence of demand.
95. When the debtor and the creditor agree to a dacion pago (transfer of ownership of
property to the creditor to settle a monetary obligation), before such transfer of
ownership, there is actually a:
A. compensation.
B. confusion.
C. condonation.
D. novation.
96. The delivery of mercantile documents such as checks will produce the effect of payment:
A. when through the fault of the creditor they have been impaired.
B. upon delivery of the mercantile document.
C. when they are certified by the bank.
D. when they are presented to the bank for payment.

97. XYZ is a cooperative store. On July 1, 2014, it paid the Government of the City of Manila
certain taxes believing that it owed the same. After six months, XYZ learned that it was
not subject to the said taxes. Accordingly, it sought to recover the said taxes it previously
paid. The obligation of the Government of the City of Manila to return the said taxes paid
is based on:
A. negotiorum gestio.
B. solutio indebiti.
C. quasi-delict.
D. The Government is exempt from giving tax refunds
98. S sold 100 bottles of imported "Fundador" brandy to B who paid immediately the price
thereof amounting to P20,000.00. S promised to deliver the brandy to B within one week
from their agreement. On the agreed date of delivery, S delivered to B 100 bottles of fake
"Fundador" brandy. The contract between S and B is:
A. voidable.
B. void.
C. valid.
D. rescissible.
99. D obtained a loan from C amounting to P50,000.00 which is payable in 10 equals monthly
installments. The loan bears interest of 1% per month which D agreed to give to T, a
student whom C is sending to school. To secure the loan, D executed a chattel mortgage
on his car. Although D has been paying the monthly interest to T, D could not pay any of
the installments due. In view thereof, D proposed, and C accepted, that D should give
instead a diamond ring to C in place of the loan of P50,000.00 within two months from
their new agreement. T, however, was not notified of the new obligation. Based on the
foregoing facts, which of the following statements is incorrect?
A. D'S obligation to give C P50,000.00 is extinguished by novation.
B. The accessory contract of chattel mortgage is extinguished by the new agreement
between D and C.
C. T is a party to the original agreement between D and C.
D. The new contract did not extinguish D'S liability to pay interest to T.
100.Alternative obligation and facultative obligation are similar in which of the following
respects?
A. The right of choice may be given either to the debtor or creditor.

B. Several prestations are due.
C. Only one prestation is due but the debtor may render another in substitution.
D. The obligation becomes a simple obligation once the choice of the prestation is made
and communicated.
101.D borrowed P5,000.00 from C. The obligation is payable in full after 30 days. In which of
the following cases is D justified in making a consignation of his payment court?
A. If C refuses to accept the payment in the form of check which is certified by the bank
to be supported by sufficient funds.
B. If C refuses to accept the payment consisting of 5,000 pieces of P1.00 coins.
C. If C refuses to accept the first installment payment in the form of a P1,000.00 bill, D
promising to pay the balance of the debt in 4 equal monthly installments.
D. If C refuses to accept the payment consisting of 250 pieces of P20.00 bills.
102.Which of the following condonations will not extinguish the debtor's obligation?
A. The condonation is in a public instrument. The acceptance is made orally. The
condonation involves a computer printer whose value is P4,000.00.
B. The condonation and the acceptance are in a public instrument. The condonation
involves a parcel of land.
C. The condonation and the acceptance are made orally with the creditor delivering to
the debtor simultaneously the promissory note amounting to P10,000.00.
D. The condonation is in a public instrument. The acceptance is made in a private
instrument. The condonation involves a television set worth P20,000.00
103.In which of the following independent cases is the payor of the debtor's debt not
subrogated to the rights of the creditor?
A. D owes C P 10,000.00. The debt is secured by a pledge of D'S ring to C. D also owes X,
P8,000.00. X pays C P 10,000.00 without the knowledge of D.
B. D owes C P 10,000.00. The debt is secured by a pledge of D's ring to C. X pays C
P10,000.00 with the consent of D.
C. D owes C P 10,000.00. The obligation is guaranteed by G. G pays C P10,000.00
without the knowledge of D.
D. D owes C P10,000.00. The obligation is guaranteed by G. X pays C P10,000.00 without
the knowledge of D.

104.S sold his only horse to B for P 10,000.00 cash. The parties agreed that S shall deliver the
horse within one week from their agreement. Nothing is mentioned in the agreement on
how the horse will be cared for by S before delivery.
A. S must take care of the horse with the diligence of a good father of a family before
delivery.
B. S need not take care of the horse because nothing was mentioned in the agreement
on how the horse will be cared for.
C. S must take care of the horse with extraordinary diligence.
D. The absence of a stipulation on how the horse must be cared for renders the sale
void because such stipulation is an essential element of the contract.
105.D owes C the following debts: P3,000.00 due on August 10; P3,000.00 due on August 15;
P3,000.00 due on August 20; and P3,000.00 due on August 25 which is secured by a
pledge of D'S ring. If today is August 22, and D pays C P3,000.00 with neither D nor C
designating the debt to which the payment shall apply, the payment shall be applied:
A. To the debt due on August 10, following the "first due, first-pay" basis.
B. To the debts due on August 10, August 15, and August 20, proportionately at
P1,000.00 each.
C. To the debt due on August 25, since it is the most onerous to D.
D. To all the debts proportionately at P750.00 each.
106.M executed a promissory note payable to P for P100,000.00. The note, which bears
interest at 2% per month, is payable after 60 days. On the date of maturity, P proceeded
to M's place to collect but when M demanded the presentation of the promissory note, P
could not present it claiming that it had been lost. M is able and willing to pay the whole
amount due including the interest but he is at a loss on what to do because P does not
have the instrument. On the other hand, if he does not pay the amount due, the interest
on the principal will continue to accrue. If you were M, the remedy that you will likely
avail yourself of is:
A. dacion en pago.
B. payment by cession.
C. consignation.
D. application of payment.
107.A, B, C and D owe X, Y and Z the sum of P 12,000.00. Based on the foregoing data, which
of the following statements is incorrect?

A. The obligation is joint.
B. There are 7 distinct debts in the obligation.
C. Each debtor is liable only for a total P3,000.00.
D. Each creditor is entitled to collect a maximum of P4,000.00.
108.P took a public bus in going to his office. Although P paid his fare, the bus conductor did
not issue to him a ticket. Along the way, the bus met an accident causing a slight injury to
P and other passengers. If P is to recover damages from the bus owner, the source of the
bus owner's liability is:
A. contract.
B. quasi-delict.
C. law.
D. P cannot recover any amount because no ticket was issued.
109.One of the following obligations is void. Which is it?

A. D to give C P50,000.00 if C does not run 100 miles without stopping.
B. D to give C P50,000.00 when D has the means.
C. D to give C P50,000.00 if D buys a brand-new car.
D. D to give C P50,000.00 if C runs for barangay chairman next year.
110.Which of the following obligations is a pure obligation and is demandable at once?

A. D to allow C to use D's car until December 31, 2015
B. D to allow C to use D's car until C finishes his course in Accounting.
C. D to give C his car. No mention is made when D shall give the car.
D. D to give C a car if C finishes his course in Accounting.
111.On January 1, 2014, D obtained a loan of P100,000.00 from C. The loan is secured by a
chattel mortgage on D's car and is payable on December 31, 2014. On September 26,
2014, the car was taken at gunpoint from D while he was starting its engine at the parking
lot of a department store.
A. D's loan obligation is extinguished. However, D must give a property which C may sell
to satisfy his claim.
B. D's loan obligation subsists. However, C may demand its immediate payment unless
D gives another security.

C. D's loan obligation subsists. However, C may not demand immediate payment since
the loss of the security was without the fault of D. D, moreover, is not required to
give a new security.
D. D's loan obligation is extinguished together with the mortgage since the loss of the
car was without the fault of D.
112.A and B are the owners of adjacent poultry and piggery farms. One day, B got sick and
failed to visit his farm. When A noticed that B was not again around during the second
day, he himself took care of the animals by feeding them and cleaning the pig and poultry
pens. A did this for the next three days until B returned. A incurred necessary and useful
expenses amounting to P5,000.00 in the process. Under the circumstances, B is obliged to
reimburse A for such expenses which the latter incurred by reason of:
A. contract.
B. solutio indebiti.
C. negotiorum gestio.
D. quasi-delict.
113.D has a savings deposit with XYZ Bank in the amount of P20,000.00 which D may
withdraw anytime from the bank. He also has a loan obligation to XYZ bank amounting to
P20,000.00 which has become due. wants to withdraw his savings deposit but XYZ Bank
informs D that it has claimed compensation of D'S deposit and his loan obligation.
A. Both D and XYZ Bank may claim compensation.
B. Neither D nor XYZ Bank may claim compensation.
C. Only D may claim or oppose compensation.
D. Only XYZ Bank may claim or oppose compensation.
114.Which of the following is an indivisible obligation?

A. To give a rendition tonight of Handel's "Messiah" in a concert at the Folk Arts
Theater.
B. To construct a pavement measuring 2 meters wide and 10 meters long.
C. To lecture for 5 Saturdays in a tax seminar.
D. To pay a loan obligation of P100,000.00 in 10 equal monthly installments.
115.Devera obtained a loan of P50,000.00 from Centeno who is engaged in the business of
financing. The written contract of the parties provides that the loan shall bear interest of
12% per annum and shall be paid in full together with the interest at the end of 12

months at Centeno's business office. On due date, Devera proceeded to Centeno’s
business office to pay his debt but the place was padlocked and showed no signs that it
had been occupied for some time. Devera is now at a loss on what to do as Centeno did
not forward his present address to him. Devera does not want to have any outstanding
obligation at the end of the year and incur further interest. Which course of action will
you recommend to Devera?
A. Tender of payment
B. Compensation
C. Consignation
D. Application of payment
116.D borrowed P 100,000.00 from C. The parties agreed at the time the obligation was
constituted that should D so desire, he may give his agricultural land to C by way of
dacion en pago to pay his loan obligation on due date. The obligation of D to C is:
A. a conjunctive obligation.
B. a simple obligation.
C. an alternative obligation
D. a facultative obligation.
117.One of the distinctions between a facultative obligation and an alternative obligation is

that in an alternative obligation:
A. Only one thing is principally due.
B. The right of choice belongs to the debtor alone.
C. If the obligation to give a principal thing is void, the obligation to give the substitute
is also void.
D. If all prestations except one are impossible, that which is possible must still be given.
118.D stole the carabao of C. D was arrested, tried in court and convicted. Aside from being
sentenced to a prison term, D was also ordered by the court to return the carabao.
However, the carabao died before D could deliver it to C.
A. D is not liable to C if the cause of the death of the carabao is a fortuitous event.
B. D is liable to C only if the carabao died because of D's fault.
C. D is liable to C whatever may be the cause of death of the carabao.
D. D has no liability to C whatever may be the cause of the death of the carabao
because his obligation to return the carabao was due to an order of the court and
not on his own volition.

119.Under a contract between D and C, D is obliged to deliver 10 bags of detergent soap to C

10 days after the execution of their agreement. On due date, D delivered to C 10 bags of
detergent soap which he mixed with chalk.
A. The contract entered into between D and C voidable because of the fraud employed
by D.
B. The contract is valid. The fraud employed by D does not affect the validity of the
contract but D is obliged to pay damages to C.
C. The contract is void because of the fraud employed by D in the performance of his
obligation.
D. The contract is rescissible because of the damages suffered by C.
120.D obtained a loan from C in the amount of P50,000.00. Unable to give cash on due date in
payment of his loan obligation, D proposed to C that he would be giving instead his
diamond ring to settle his debt. C agreed and accepted the ring from D. The new
agreement between D and C involved both:
A. Novation and application of payment.
B. Novation and dacion en pago.
C. Compensation and payment by cession.
D. Confusion and tender of payment
121.Salas and Bersamin entered into a contract whereby Salas would deliver 5 pieces of
genuine Rolex wristwatches to Bersamin. Salas proposed to Bersamin that should Salas
deliver 5 units of fake pieces of Rolex wristwatches by reason of financial difficulties on
his part, Bersamin would not sue him for damages on the ground of fraud. Bersamin
accepted the proposal. On due date, Salas delivered 5 pieces of fake Rolex wristwatches.
Upon discovery of the fraud, Bersamin sues Salas for damages. Salas contends that he
cannot be held liable for damages because Bersamin waived his right to hold him (Salas)
liable on the ground of fraud if the reason thereof is the financial difficulties of Salas.
A. Bersamin cannot sue Salas for damages because the reason for the waiver is valid,
i.e., financial difficulties of Salas, which is a valid reason for the waiver.
B. Bersamin can sue Salas for the annulment of the contract since it is voidable.
C. Bersamin can sue Salas for damages because the waiver he made is void.
Nonetheless, the contract is valid.
D. Bersamin can sue Salas for the rescission of the contract since it is rescissible.

122.B ordered 10 boxes of "X" shirts worth P2,000.00 per box from S paying immediately the
total price of P20,000.00. While inspecting the goods after their delivery to his store, B
discovered that one box was missing. Upon being informed, S apologized for the error
and promised to refund the price of P2,000.00 within three days as there was no more
stock of "X" shirts available. In the meantime, B ordered and received from S one box of
"Y" shirts which was also worth P2,000.00 promising to pay the same within three days.
On the third day, assuming that S had not yet refunded the price of the undelivered "X"
shirts to B, B need not pay S the price of "Y" shirts by claiming:
A. consignation.
B. compensation.
C. condonation.
D. novation.
123.The following are obligations with a term or period, except:

A. D to give C P50,000. 00 on December 1, 2015.
B. D to give C P50,000.00 on Christmas day next year.
C. D to give C P50,000.00 upon the death of C's father.
D. D to give C P50,000.00 if C's father dies within 2 years.
124.A, B and C are liable in solidum to X for P 12,000.00. X renounced the share of A who
accepted it. Later, B becomes insolvent.
A. X can collect from C P8,000.00.
B. X can collect from C P4,000.00.
C. X can collect from C P 12,000.00.
D. X can collect nothing from C.
125.Ace Realty Company (Ace) ordered 6 units of "Borden” typewriters from Central Office
Machines (Central) at the price of P8,000.00 per unit. However, Central delivered to Ace 6
units of "Remington" typewriters, a superior brand which was priced at P8,500.00 per
unit. Central informed Ace that it will bill the latter for the "Remington” typewriters at
P8,000.00 only. Ace refused to accept the "Remington" typewriters.
A. Central can compel Ace to the accept the "Remington" typewriters since they are of
superior quality.
B. Central cannot compel Ace to the accept the "Remington" typewriters although they
are of superior quality.

C. Central can compel Ace to accept the "Remington" typewriters since Ace is required
to pay only the price of "Borden" typewriters.
D. Central can compel Ace to accept the "Remington" typewriters since all that is
required of Central is to deliver a typewriter that can perform the same function as
the one that was ordered.
126.Prime Engineering Review Center (PERC) stated in the leaflets it distributed last January
that any reviewee who places first in the licensure examinations for engineers this year
will receive a cash prize of P150,000.00.
A. The obligation of PERC is subject to a suspensive condition.
B. The obligation of PERC is subject to a resolutory condition.
C. The obligation of PERC is a pure obligation.
D. The obligation of PERC is an obligation with a suspensive period.
127.Three of the following statements pertain to natural obligation. Which one does not?
A. It is not enforceable in a court of justice.
B. Obligation exists by reason of equity and moral justice.
C. If performed voluntarily, recovery can no longer be
D. There is juridical necessity to perform it.
128.D has a grains warehouse in Davao, while C has a grains warehouse in Cebu. D borrowed
10 sacks of rice worth P10,000.00 from C for D's customer in Cebu. Later, C borrowed 10
sacks of rice which was also worth P10,000.00 from D for C's customer in Davao. Both the
obligations are already due. Transport costs to Davao amount to P 1,000.00, while those
for Cebu amount to P800.00.
A. D and C need not pay each other since their debts compensated each other.
B. D and C need not pay each other since their debts compensated each other, except
for the delivery charges which C must pay to D in the amount of P200.0 (P1,000.00
less P800.00).
C. Compensation cannot take place because the debts are payable at different places.
D. D must pay C P10,800.00, while C must pay D P11,000.00.
129.D owes C P20,000.00 due on March 25. C, on the other hand, owes D the following debts:
P8,000.00 due on March 1, P3,000.00 due on March 8, P5,000.00 due on March 14, and
P2,000.00 due on March 24. On March 18, C assigned his credit right to T without

informing D who learned of the assignment on March 20. On March 25, T may collect
from D:
A. P20,000.00
B. P2,000.00
C. P4,000.00
D. None, because the assignment made by C was without the knowledge of D.
130.D owes C P20,000.00 due on March 15. C, on the other hand, owes D the following debts:
P8,000.00 due on March 1, P3,000.00 due on March 8, P5,000.00 due on March 14. On
March 12, C assigned his right to T with notice to D but with D not giving his consent to
the assignment. on March 15, T can collect from D:
A. P20,000.00.
B. P9,000.00.
C. P4,000.00.
D. None, because the assignment made by C without the consent of D.
131.On December 1, 2014, Miss Santos, a professor of Manila College, engaged the services
of Lepanto Transport to bring her class to Calamba, Laguna in time for the Rizal Day
celebration on December 30, 2014 which would start at nine o'clock in the morning. The
contract signed by the parties specified that a bus would be in the school premises at six
o'clock in the morning and would leave at exactly 6:30 a.m. However, Lepanto Transport
failed to send a bus on the date, time and place agreed upon. As a result, Miss Santos and
her class failed to attend the celebration. Ms. Santos sued Lepanto Transport for damages
on the ground of delay in the performance of its obligation. For its defense, Lepanto
Transport claimed there was no delay because Miss Santos never made a demand.
A. There was no delay because Miss Santos did not make any demand.
B. Lepanto Transport was in delay since demand was not required.
C. Miss Santos should have obtained the services of another company when the bus of
Lepanto Transport did not arrive.
D. Miss Santos should have reminded Lepanto Transport from time to time before the
due date of its obligation to provide for a bus.
132.Leveriza, the owner of an apartment, leased the premises to Toribio. The terms of the
lease provide for a monthly rental of P6,000.00 which Toribio must pay at the residence
of Leveriza about two blocks from the apartment. For the month of December, Toribio
went to the residence of Leveriza but the latter was not around to receive the payment.

Not wanting to go back, Toribio left the payment with Nograles, a neighbor of Leveriza,
who promised to give the payment to Leveriza. However, Nograles spent the amount he
received for himself. Based on the foregoing facts, which of the following statements is
incorrect?
A. The payment by Toribio to NograJes is valid since the latter is a neighbor of Leveriza.
B. The payment by Toribio is not valid because Nograles was not authorized to receive
the payment.
C. Leveriza can demand payment from Toribio for the December rental.
D. Toribio can go after Nograles for the amount misspent by Nograles.
133.D owes the following creditors: X, P20,000.00; Y, P30,000.00; and Z, P50,000.00. D is

insolvent so he offers to assign all his properties (except those exempt from execution) to
his creditors in payment of his debts. The creditors accept the offer and are able to sell
the debtor's properties for P70,000.00. Based on the foregoing facts, which of the
following statements is incorrect?
A. The special mode of payment availed of by D is payment by cession.
B. D is released from his total liability of P100,000.00 even if there is no stipulation to
that effect.
C. D is released from his liability only to the extent of P70,000.00 in the absence of any
stipulation giving him total release.
D. The creditors did not become the owners of D's properties at the time of their
assignment.
134.On May 31, 2014, D promised to give a specific house and lot to C if C passes the Bar
Examination. On September 24, 2014, C took the Bar Examination. The result of the Bar
Examination which C took was released on March 26, 2015 and C passed it. C shall be
entitled to the house and lot:
A. on May 31, 2014.
B. on September 24, 2014.
C. on March 26, 2015.
D. when he receives his rating.
Items 135, 136 and 137 are based on the following information:
A and B are indebted to X and Y for 10,000.00. A and B share in the debt in the ratio of 1:3;
while X and Y share in the credit in the ratio of 2:3.

135.How much may X collect from A if the debtors are joint debtors, while the creditors are
joint creditors?
A. P10,000.00
B. P2,500.00
C. P4,000.00
D. P1,000.00
136.How much may X collect from A if there is active solidarity?

A. P10,000.00
B. P2,500.00
C. P4,000.00
D. P1,000.00
137.How much may X collect from A if there is passive solidarity?

A. P10,000.000
B. P2,500.00
C. P4,000.00
D. P1,000.00
138.A, B and C are solidary debtors of X, Y and Z, solidary creditors, in the amount of
P2,700.00. X renounces the whole obligation without the consent of Y and Z. The debtors
accepted the renunciation.
A. The whole obligation is extinguished.
B. Only P900.00 is extinguished.
C. No part of the obligation is extinguished because not all the creditors consented to
the renunciation.
D. Only P300.00 is extinguished.
139.A, B and C are solidary debtors of X in the amount of P3,000.00. X renounces the share of
A and A accepts the renunciation. Thereafter, B becomes insolvent. Ultimately:
A. C alone will shoulder the balance of P2,000.00
B. A will shoulder P500.00, while C will shoulder P1,500.00.
C. C will shoulder only his share of P1,000.00. A will no longer shoulder any amount
since his share was already renounced by X.
D. A will shoulder P1,000.00, while C will shoulder P1,000.00, for the remaining balance
of P2,000.00.

140.A, B and C are obliged to deliver a specific horse to X, Y and Z.

A. A demand made by X against A, B and C is a valid demand against all the debtors.
B. A demand made by X, Y and Z against A is a valid demand against all the debtors.
C. If a valid demand is made against all the debtors but debtor C cannot comply with his
part of the obligation, the obligation is converted into a monetary obligation to pay
the value of the horse plus damages.
D. If the debtors default in their obligation because C is insolvent, A and B will be liable
for C's share of the obligation.
141.O was cleaning the glass window of his building when a large piece of broken glass fell
down directly hitting the roof of a car which was parked below. C, the owner of the car,
was not around. Sensing that he would be made liable for the damage on the car, O
immediately went down and cleaned the mess. O, seeing that W had witnessed all that
happened, proposed to give W P2,000.00 so that W would not testify in case a court case
is filed. W agreed to the proposal and accepted the money. Based on the foregoing facts,
which of the following statements is incorrect?
A. O's liability, if any, is based on quasi-delict.
B. The agreement between O and W is binding on both of them.
C. W may testify in court despite the agreement.
D. The agreement between O and W is void.
142.A, B and C are solidary debtors of X and Y for P30,000.00, joint creditors.
A. X may collect P30,000.00 from either A, B or C. Thereafter, he must give to Y
P15,000.00 representing the share of Y.
B. X may collect P30,000.00 from the debtors but not more than P10,00.000 from each
of them. Thereafter, he must give to Y P15,000.00 representing the share of Y.
C. X may collect P15,000.00 from either A, B or C. Thereafter, he is not obligated to give
any amount
D. X may collect P15,000.00 from the debtors but not more than P5,000. 00 from each
of them. Thereafter, he is not obligated to give any amount to Y.
143.S, a supplier of fresh fish from Lucena City, hired T, the owner of a trucking company, for
a fee of P3,000.00 to bring the fish catch of S to the Dampa Market in Paranaque City
which ordered the fish for a price of P20,000.00. In so far as S is concerned, his prestation
in his contract with T is:

A. the sale of the fish.
B. the transport of the fish.
C. the payment of P3,000.00.
D. the payment of P20,000.00.
144.Refer to the preceding number. In the contract between S and T:

A. S is the obligor and T is the obligee.
B. S is the obligee and T is the obligor.
C. Both S and T are obligors and obligees of each other.
D. The Dampa Market is the obligee of both S and T.
145.D obtained a loan of P200,000.00 from C. Not having any cash on due date when C visited
him to demand payment, D offered to C to accept, at C's choice, necklace, diamond ring,
or a parcel of land, all of which D showed to C. C accepted the proposal, but requested
that he be given one week to decide which item to take. Before the week was over,
however, armed men forcibly took the necklace and diamond ring from D'S house.
A. D's obligation became a simple obligation to deliver the parcel of land.
B. D's obligation to give P200,000.00 is revived because C was deprived of his right to
choose.
C. D's obligation to give was extinguished by personal novation.
D. D's obligation is now to give the parcel of land or P200,000. 00 at C's option.
146.The following are characteristics of a facultative obligation, except:

A. Only one thing is principally due.
B. The right of choice cannot be given to the creditor.
C. The debtor must give the substitute in case the principal thing is lost due to the
debtor's fault before substitution.
D. If the principal is void, the debtor is not obliged to give the substitute.
147.D owes C the following debts: P5,000.00 due on January 1; P7,000.00 on January 5;
P8,000.00 due on January 10; P 10,000.00 due on January 15; and P5,000.00 due on
January 20. By agreement of the parties, D was given the benefit of the period. As of
January 17, D has not paid any of the debts. He has P5,000.00 which he wants to remit to
C.
A. D may apply the payment to any of the five debts.

B. D may apply the payment to any of the four debts that have become due as of
January 17.
C. D may apply the payment either to the debt due on January 1 or January 20.
D. D may apply the payment only to the debt due on January 1.
148.Refer to the preceding number. Assume that D did not designate the debt to which the
payment shall apply. In this case:
A. C may apply the payment to any of the five debts.
B. C may apply the payment to any of the four debts that have become due as of
January 17.
C. C may apply the payment either to the debt due on January 1 or January 20 only
since the amount of the payment is the same as the amount of each debt.
D. C may apply the payment to the debt due on January 1 only.
149.Refer to No. 147. Assume the creditor did not also designate the debt to which the
payment shall apply. In such a case:
A. Payment shall be applied proportionately to the five debts.
B. Payments shall be applied proportionately to the four debts that have become due
as of January 17.
C. Payment shall be applied only to the debt due on January 1 since it is the first debt
that has become due.
D. Payment shall be applied proportionately to the debt due on January 1 and January
20 since the amount of each debt is of the same amount as the payment.
150.Dacion en pago and payment by cession are special forms of payment. They are similar in
which of the following respects?
A. On the number of creditors involved.
B. On the extent of the properties involved in the payment.
C. On the purpose of the payment.
D. On whether the debtor is released completely from his obligation/s.
151.D is indebted to C for P52,000.00. On due date, D tendered payment amounting to

which consisted of the following: 47 pieces of P 1,000.00 bills for a total of P47,000.00;
and 250 pieces of P20.00 bills for a total of P5,000.00. C refused to accept the payment
and demanded that D make his payment all in P1,000 bills since, according to him, the
P20.00 bills were too bulky and inconvenient for him to carry.

A. D may consign the payment since the refusal by C to accept the payment was not
justified.
B. C's reason for refusing to accept the payment was justified. Hence, D cannot consign
the payment
C. D cannot compel C to accept the payment he was offering because a debtor must
make his payment according to the wishes of his creditor.
D. D may make his payment in check and compel C to accept the payment since this
form is the most convenient for C.
152.Which of the following is a characteristic of expromision but not of delegacion?

A. It is made with or without the consent of the debtor.
B. The third person who makes the payment to the creditor is always entitled to
subrogation.
C. In case of insolvency of the new debtor, the creditor may still recover from the
original debtor under certain circumstances.
D. It is initiated by the debtor himself.
153.D, a depositor of ABC Bank, visited the branch of the bank at España Boulevard to
withdraw from its automated teller machine (ATM). After pressing correctly the amount
of P500.00, the machine dispensed 10 piece of P500.00 bills or a total of P5,000.00. The
receipt released by the ATM showed that only P500.00 was withdrawn.
A. D does not have to return the excess of P4,500.00 because it was not his fault that
the ATM would dispense more than what he wanted to withdraw.
B. D does not have to return the excess of P4,500.00 because the receipt did not
indicate that the said amount was withdrawn.
C. D must return the excess of P4,500.00 because it was a case of payment that was not
due.
D. D must return the excess of P4,500.00 because the bank will likely discover that he
was the one using the ATM when the overpayment was made.
154.D is indebted to C in the amount of P100,000.00. The debt is secured by a mortgage of

the lot of D and the guaranty by G. G, without informing D, paid the total amount of the
loan to C.
A. G cannot collect from D. He cannot also foreclose the mortgage.
B. G can collect from D. However, if D cannot pay, G cannot foreclose the mortgage.
C. G can collect from D. If D cannot pay, G can foreclose the mortgage.

D. G cannot collect from D. However, G can foreclose the mortgage.
155.A, B and C are liable to X in the amount of P30,000.00. The debt is evidenced by a
promissory note which reads "I promise to pay X or order P30,000.00". The note is signed
by A, B and C. X indorsed the note to Y, Y to Z, and Z to A for merchandise Z bought from
A.
A. The obligation under the note is totally extinguished.
B. The obligation under the note is extinguished only up to P10,000.00.
C. The obligation under the note is extinguished only up to P20,000.00.
D. No part of the obligation is extinguished.
156.When two persons are claiming the same right to collect from you and you are in doubt
as to whom you will give your payment, your remedy so that you will not pay to the
wrong person is:
A. tender of payment.
B. application of payment
C. dacion en pago.
D. consignation.
157.Decoroso borrowed P50,000.00 from Collantes with Gualberto as guarantor. However,

Collantes is also indebted to Decoroso in the amount of P30,000.00. Both debts have
become due. Collantes demanded payment from Decoroso but Decoroso has become
insolvent with assets of only P15,000.00 which he used in partial payment of his debt to
Collantes. In this case:
A. Collantes can hold Gualberto liable for the remaining P35,000.00. Gualberto cannot
set up compensation as regards the amount that Collantes owes Decoroso because
he (Gualberto) is not a principal debtor.
B. Collantes can hold Gualberto liable for only P5,000.00 because Gualberto can set up
compensation as regards the amount that Collantes owes Decoroso.
C. Collantes can hold Gualberto liable for the amount of P30,000.00 only because that
is the amount that Collantes owes Decoroso.
D. Collantes cannot hold Gualberto liable for any amount because the insolvency of
Decoroso released Gualberto from liability.
158.A and B are joint debtors of W, X, Y and Z, solidary creditors, in the amount of
P20,000.00. In this case:

A. W can collect from either A or B P20,000.00. Then W must give P5,000.00 each to X,
Y and Z.
B. W can collect only the maximum amount of P10,000.00 each from A and B. If W is
able to collect P10,000.00 from A, W must give P2,500.00 each to X, Y and Z. If W is
able to collect P10,000.00 from B, W must give P2,500.00 each to X, Y and Z.
C. W can collect only the amount of P5000.00 from either A or B. When he collects the
said amount, W does not have to give the amount of P1,250.00 each to X, Y and Z.
D. W can collect only the maximum amount of P2,500.00 each from A and B. When he
collects the total amount of P5,000.00, W does not have to give the amount of
P1,250.00 each to X, Y and Z.
159.D owes C P6,000.00 which is due on January 10, and another debt of P12,000.00 which is
due on January 20. Both debts are unsecured and non-interest bearing and are already
due. D, however, has only P3,000.00 which he gives to C without informing C as to which
debt the payment shall apply. C also did not indicate on the receipt he issued to D to
which of the two debts the payment shall apply. In this case:
A. The payment of P3,000.00 shall be applied to the debt due on January 10 because it
was the first to become due.
B. The payment of P3,000.00 shall be applied to the debt due on January 20 because it
is of a greater amount.
C. Payment cannot be applied to either of the two debts because it is incomplete.
D. The payment of P3,000.00 shall be applied proportionately in the amount of
P1,000.00 to the debt due on January 10, and P2,000.00 to the debt due on January
20.
160.D obtained a loan of P500,000.00 from C on January 1, 2014. The loan, which D has the
option of paying on or before December 31, 2014, is secured by a building owned by D
and bears interest of 1% per month. On June 30,2014, the building was razed in a fire
without the fault of D.
A. C may demand immediate payment of the loan from D on June 30, 2014 since the
security therefor was lost, unless D gives another security.
B. C may not demand immediate payment of the loan from D because the loss of the
building was due to fortuitous event.
C. C may demand payment of the loan from D only on December 31, 2014 because the
benefit of the period was given to D who was given the option to pay on or before
the due date.

D. C may no longer demand payment since the loan was extinguished by reason of the
loss of the building.
161.Mario Marquez executed a promissory note which reads as follows:

I to pay to the order of Pablo Perez the sum of P50,000. 00 on January 31, 2016.
(Sgd.) Mariano Marquez (Sgd.) Gilbert Garcia
Maker Guarantor
Pablo Perez indorsed the note to Alfonso Abad, Alfonso Abad to Benito Buenviaje, Benito
Buenviaje to Carlos Cuaresma, and Carlos Cuaresma to Gilbert Garcia. The negotiation of
the note to Gilbert Garcia produced the effect of:
A. extinguishing both the loan and the guaranty.
B. extinguishing the loan but not the guaranty.
C. extinguishing the guaranty but not the loan.
D. neither extinguishing the loan nor the guaranty.
162.D borrowed P50,000.00 from C. On due date, D did not have any money to pay the debt
so he proposed to C that the latter accept a ring to settle the debt. C accepted the
proposal and received the ring. Immediately after receiving the ring, C sold it to B. D's
obligation to give P50, 000.00 to C is extinguished by:
A. dacion en pago.
B. payment by cession.
C. sale.
D. application of payment.
163.D is obliged to deliver a specific Toyota car to C. The parties agreed that should D so
desire, he may deliver his only Lancer car to C as a substitute. Before D could make any
substitution, the Lancer car was damaged beyond repair through the fault of D.
A. D's obligation to deliver the Toyota car is extinguished.
B. D is obliged to pay damages to C for the loss of the Lancer car.
C. D is still obliged to deliver the Toyota car to C on due date.
D. D is obliged to get another Lancer car as a substitute.
164.D is obliged to deliver either a specific bracelet, a specific necklace, or a specific ring to C.
No mention was made in the agreement of the parties as to who has the right of choice.
Before due date, C wrote D informing the latter that he (C) preferred that the ring be

delivered to him. D received the letter but did not give any response to C. Subsequently
was lost through a fortuitous event.
A. D's obligation to C is extinguished by fortuitous
B. D is obliged to pay damages to C because he was in default when he did not respond
to the letter.
C. D's obligation is not extinguished as he may deliver either the bracelet or the
necklace.
D. D's obligation became a simple obligation when C informed D of his (C's) preference
on the object to be given to him.
165.D, a professional singer, agreed to sing for a fee of P20,000.00 at the birthday party of C
who was a fan of D. Due to numerous commitments, D could not go to the party of C. So
he sent X, another professional singer who was known to sing better than D, to sing at C's
party, and informed C that the latter needed to pay only P10,000.00.
A. D may validly assign his obligation to sing because the reduced fee was advantageous
to C.
B. D may validly assign his obligation to sing because X could perform the obligation
better than him.
C. D may not validly assign his obligation to sing because it is personal in nature.
D. C cannot refuse the performance of the obligation by X because the obligation to
sing is transmissible since it would not require much effort on the part of either D or
X who are both professional singers.
166.D received a check for P5,000.00 drawn against ABC Bank in payment of a debt due him.
Upon cashing the check, D requested the teller to give him 10 pieces of P500.00 bill and
to place the money in an envelope. As he was in a hurry, D left the bank without
bothering to count the cash. Shortly after reaching his office, D counted the money in the
envelope and discovered that it contained 10 pieces of P1,000.00 bill or an excess of
P5,000.00.
A. D does not have the obligation to return the excess of P5,000.00 because it was not
his fault that the teller would pay him an amount in excess of what was stated in the
check.
B. D does not have the obligation to return the excess of P5,000.00 because the bank
will not likely know who among the bank clients received such excess amount.
C. D must return the excess of P5,000.00 because he has the obligation to do so under
the principle of solutio indebiti.

D. D must return the excess of P5,000.00 because he has the obligation to do so under
the principle of negotiorum gestio.
167.The following condonations are presented to you for evaluation:

I. A condonation involving a debt of an immovable property which was embodied in a
private instrument together with the acceptance thereof.
II. A condonation involving a money debt of P6,000.00 made and accepted orally with
the creditor making a simultaneous delivery to the debtor of the promissory note
evidencing the credit.
In your evaluation of the above condonations, the obligation is:

A. extinguished in both I and II.
B. extinguished in I only.
C. not extinguished in either I or II.
D. extinguished in II only.
168.The following cases are presented to you for evaluation:

I. D is obliged to deliver a specific computer to C. Before the scheduled delivery, the
computer was lost in a fire through no fault of D.
II. D is obliged to deliver 10 sacks of rice to C. Before the scheduled delivery, the
warehouse of D containing 500 sacks of rice from which D intended to get 10 sacks of
rice for delivery to C, was razed in a fire together with the stock of rice through no
fault of D
In your evaluation of the above cases, the obligation is extinguished by loss in:
A. Both I and II.
B. Neither I nor II.
C. I only.
D. II only.
169.Which of the following obligations is void?

A. D agreed to hire C as manager of his (D's) business if C is willing to relocate to Cebu.
B. D agreed to paint the portrait of C if D will enroll in a painting class this coming
month.
C. D promised to pay his debt to C amounting to P20,000.00 as soon as possible.

D. D agreed to give a monthly support of P5,000.00 to C until D ends his contract of
employment overseas.
170.D owes C P50,000.00. The obligation is secured by the guaranty of G and a real mortgage
on D'S lot. Subsequently, G, without the knowledge of D, paid C the amount of
P50,000.00.
A. G can go after D to collect and if D cannot pay, G can foreclose the mortgage because
he is entitled to subrogation.
B. G can go after D to collect and if D cannot pay, G can foreclose the mortgage because
he is entitled to compensation.
C. G can go after D to collect and if D cannot pay, G can foreclose the mortgage because
he is entitled to condonation.
D. G can go after D to collect but he is not entitled to any other right because the
payment he made to C was without the knowledge of D.
171.One peso, P5.00 and P 10.00 coins are legal tender up to:
A. P100.00
B. P500.00
C. P1,000.00
D. Any amount.
172.One centavo, P0.05, PO0.10 and P0.25 centavo coins are legal tender up to:
A. P100.00
B. P500.00
C. P1,000.00
D. Amy Amount.
173.All bills are legal tender up to:

A. P5,000.00.
B. P10,000.00.
C. P100,000.00
D. Any amount.
174.D obtained a loan of P5,000.00 from C. On due date, D tendered payment amounting to
P5,000.00 consisting of 5,000 pieces of P1.00 coin.
A. The payment offered by D is legal tender.

B. C may not refuse to accept the payment.
C. Should C refuse to accept the payment, D may resort to consignation (deposit of the
payment in court).
D. C may demand that he be paid in bills.
175.D is obliged to deliver 20 sacks of "Dinorado" rice to C. The parties agreed that should D
fail to perform his obligation as stipulated, D will pay a penalty of P1,000.00. On due date,
D made a delivery of 20 sacks of rice but each sack contained a mixture of "Dinorado" rice
and another variety of lower quality. C discovered the fraud.
A. C may demand the payment of the stipulated penalty only.
B. C may demand the payment of the stipulated penalty as well as damages although
there was no stipulation on the latter.
C. C may demand the payment of damages in addition to the stipulated penalty only if
there was a stipulation with respect to damages.
D. C may demand the payment of damages in addition to the stipulated penalty only if
D refuses to pay the penalty.
176.D obtained a loan of P50,000.00 from C. The loan was evidenced by a promissory note
executed by D which said nothing about the transmissibility of the loan obligation or the
right to collect it. A month before the due date of the loan, C died leaving S, his son, as
heir. On due date, S presented the promissory note to D for payment, but D refused
claiming that he owed C but not S.
A. D may refuse to pay because the right to collect belonged only to C.
B. D may not refuse to pay because the right of C to collect was transmitted to S who
was the heir of C notwithstanding the absence of an agreement to that effect.
C. D may refuse to pay because there was no stipulation that the right to collect the
loan would be transmitted to C's heirs.
D. D may refuse to pay because the transmission of the credit right is prohibited by law.
177.These statements are presented to you:

I. Several prestations are due but all must be performed to extinguish the obligation.
II. If there are void prestations, the other prestations may still be valid; hence, the
obligation remains.
In your evaluation of the foregoing statements:

A. Both statements refer to an alternation obligation.

B. Neither statement refers to an alternative obligation.
C. Only Statement I refers to an alternative obligation.
D. Only Statement II refers to an alternative obligation.
178.D obtained a loan of P50,000.00 from C. The same is payable after 60 days. On due date,
D, not having sufficient cash, offered to give either his ring or his bracelet to C. C accepted
the offer. Based on the foregoing facts, which of the following statements is incorrect?
A. The original obligation of D is an obligation with a period.
B. The original obligation of D is extinguished by novation.
C. The right to choose the item to be given belongs to C.
D. The new obligation is an alternative obligation.
179.D borrowed P50,000.00 from C. The debt, which is payable within one year, is secured by
a mortgage that D constituted on his lot. The mortgage is recorded in the Registry of
Property. C dies before the due date of the debt and was not able to collect any amount
of his loan receivable from D. He was survived by S, his only son and heir. D, taking
advantage of the situation, sold the lot to T who was not aware of the mortgage
constituted thereon.
A. The mortgage is not binding on T since he was not aware of it at the time he bought
the lot.
B. S, the son of C, has the right to collect the amount of the note from D and foreclose
the mortgage if the D cannot pay.
C. The mortgage is not binding on T since D was in bad faith when he sold the lot to T.
D. The right to collect the loan and foreclose the mortgage were extinguished upon the
death of C.
180.A, an agent of P, owes B P20,000.00. B, on the other hand, owes P, P20,000.00. Both
debts are due.
A. P may claim legal compensation.
B. A may claim legal compensation.
C. B may claim legal compensation.
D. Neither P, A nor B may claim legal compensation.
181.On January 1, 2014, D and C agreed that D would deliver to C a specific agricultural land
on July 1, 2014. From January 1 to June 30, 2014, D harvested palay from the land worth
P20,000.00. D actually delivered the land to C on September 30, 2014. At that time, crops

valued at P15,000.00 that grew beginning on July 1, 2014 remained unharvested. C had a
personal right against D for the delivery of the thing and its fruits beginning on:
A. January 1, 2014.
B. June 30, 2014.
C. July 1, 2014.
D. September 30, 2014.
182.C acquired a real right over the thing and its fruits on:
A. January 1, 2014.
B. June 30, 2014.
C. July 1, 2014.
D. September 30, 2014.
183.The palay harvested from the agricultural land mentioned in Item 181 is an example of:
A. industrial fruit.
B. natural fruit.
C. civil fruit.
D. It is not a fruit.
184.D is obliged to deliver his only horse to C on May 31, 2014. C made a demand against D
for the delivery of the horse on May 31, 2014. However, D failed to deliver the horse. In
view thereof, C consulted you and ask which of the following remedies are available to
him.
I. Compel D to deliver the horse to him.
II. Get a horse from another person at D's expense.
III. Demand payment of damages from D.
Which of the foregoing remedies may be availed of by C?

A. I and III
B. II and III
C. I only
D. II only
185.D is obliged to repair the car of C. D failed to repair the car despite the demands made by
C. D wants to know from you which of the following remedies are available to him:
I. Compel D repair the car.

II. Have the car repaired by another person at D's expense.
III. Demand payment of damages from D.
Which of the foregoing remedies may be availed of by C?

A. I and III
B. II and III
C. I only.
D. II only.
186.The kind of fraud which renders a contract voidable is:

A. Casual fraud.
B. incidental fraud.
C. fraud in performance.
D. future fraud.
187.D was obliged to deliver a specific car to C on May 31, 2015. On such date, however, D
failed to deliver the car. C also did not make any demand for the delivery of the car.
A. D was in delay when he failed to deliver the car on due date.
B. D was not in delay when he failed to deliver the car on due date.
C. D would be on delay only if C made a demand for the delivery of the car on or before
due date.
D. D was in delay whether demand was made or not since time was of the essence of
the contract.
188.D appointed C as his agent to purchase a parcel of land belonging to X. D promised to give
a commission of P10,000.00 to C if C can present to D the deed of absolute sale signed by
X in favor of D on or before December 31, 2014. The condition of the obligation is:
A. negative.
B. positive.
C. impossible.
D. no condition exists.
189.Refer to No. 188. Which of the following statements is incorrect?

A. D's obligation is extinguished if it is already January 1, 2015 and C has not yet
presented to D the deed of absolute sale duly signed by X.

B. D's obligation is extinguished on December 5, 2014 if X dies on such date without
him having signed the deed of absolute sale.
C. D's obligation is demandable if C presents to D on or before December 31, 2014 the
deed of absolute sale duly signed by X
D. D's obligation is demandable if it is already January 1, 2015 and C has not yet
presented to D the deed of absolute sale duly signed by X.
190. D promised to give P20,OOO.OO to C provided C does not sign a contract with X on
or before December 31, 2014 The condition of the obligation is:
a. negative.
b. positive.
c. impossible.
d. no condition exists.
191. Refer to No. 190. Which of the following statements is incorrect?
a. D'S obligation becomes demandable if it is already January 1, 2015 and C has not
yet signed the contract with X.
b. D'S obligation becomes demandable on December 5, 2014 if X dies on such date
without C having signed the contract with X.
c. D'S obligation is extinguished if C signs the contract with X on or before December
31, 2014.
d. D'S obligation is extinguished if it is already January 1, 2015 and C has not yet signed
the contract with X.
192. D is obliged to give P50,000.OO to C if C tops the CPA Examination and a specific lot if
C can reduce the taxes to be paid by D in D'S tax return by unlawful means.
a. Both conditions must be fulfilled so that C may demand the payment of
P50,OOO.OO and the delivery of the specific lot.
b. C may demand the payment of P50,000.00 if he tops the CPA Examination.
c. C may demand the delivery of the specific lot if he can reduce through unlawful
means the taxes to be paid by D.
d. C may not demand the payment of P50,000.00 and the delivery of the specific lot
even if he fulfills both conditions since the conditions are indivisible.
193. Three of the following are the characteristics of a condition. Which is the exception?
a. It may or may not happen.
b. It may refer to the future.
c. It merely fixes the time for the efficaciousness of an obligation.
d. It may refer to a past event unknown to the parties.

194. A, B and C are solidary debtors of X in the amount of P30,000.00. C was insane at
the time the obligation was constituted.
a. X may possibly collect from A the amount of P30,OOO.OO.
b. X may possibly collect from A the amount of P20,OOO.OO.
c. X may possible collect from A the amount of PIO,OOO.OO.
d. X may not be able to collect anything from A since the insanity of C at the time the
obligation was constituted rendered the whole obligation voidable.
195. The delivery of promissory notes payable to order or other bills of exchange or other
mercantile documents shall produce the effect of payment when they are:
a. delivered.
b. cashed.
c. have been impaired through the fault of the debtor.
d. deposited in the bank.
196. D owes C P 10,000.00. T offers to pay D'S obligation and tells D that D need not
reimburse him. However, D does not give his consent to T 's offer not to be reimbursed. C,
nonetheless, accepts the payment from T.
a. The payment is valid insofar as C is concerned since he accepted the payment.
b. The payment is not valid because D did not give his consent to T's offer not to be
reimbursed for the payment.
c. The payment is not valid because it was not D himself who made the payment.
d. The payment will be valid if T had the intention to be reimbursed and D consented to
the payment.
197. Which of the following payments is not valid?
158
OBLIGATIONS
a. Payment to the person in Whose favor the obligation was constituted.
b. Payment to the creditor's successor in interest.
c. Payment to the creditor's heirs.
d. Payment made by the debtor to the person in possession of an order instrument
evidencing the credit but such person is not the indorsee thereof.
198. D obtained a loan of PIO,OOO.OO from C who was in his right mind at the time he
granted the loan to D. On due date, D paid his loan obligation of P 10,000.00 to C who had
since become insane. Of the total amount received, C lost P4, 000.00 and spent P6,000.00 for
his food and other necessary expenses.

a. The obligation is totally extinguished because C received the payment in full.
b. The obligation is extinguished up to P4,000.00.
c. The obligation is extinguished up to P6,000.00.
d. No part of the obligation is extinguished because C
was insane at the time he received the payment.
199. Which of the following payments is not valid?
a. Payment to a third person who acquires the creditor's right after the payment.
b. Payment which, although made to a third person, was ratified by the creditor.
c. Payment to a third person who does not have the authority to receive the payment
but the creditor, by his conduct, has led the debtor to believe that the third person had
authority to received payment.
d. Payment made in good faith to a person in possession of the instrument but not the
credit.
200. The following statements concerning payment by cession are true, except:
a. the creditors become the owners of the properties of the debtor that were ceded to
them.
b. payment by cession extinguishes the obligations only to the extent covered by the
proceeds of the sale of the debtor's properties.
c. the debtor must be insolvent.
OBLIGATIONS
159
d. it affects all the properties of the debtor those exempt from execution.
201. D owes C the following debts: P4,000.00 due on May 1; P4,OOO.OO due on May 8;
P4,OOO.OO due on May 15; P4,000.OO due on May 22; P4,000.00 due on May 29; and price
P4,OOO.OO of magazines due on June which 5.were The delivered debts to represented D on
a weekly the 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,OOO.OO.
a. D may apply the payment to the debt due on June 5.
b. D must apply the payment proportionately to the 5 debts that have become as of
May 31 at P800.OO each.

c. D may apply the payment to the debt due on May 22 which is the most burdensome
to him.
d. D must apply the payment to all the debts proportionately at P666.67 each.
202. Refer to No. 201. 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:
a. The payment shall be applied proportionately to the debts that have become due as
of May 31 proportionately at P800.00 each.
b. The payment shall be applied to the debt due on May 22 since it is the debt that is
most onerous to
c. The payment shall be applied to all debts
proportionately at P666.67.
d. The payment shall not be applied to any debt because there was no designation by
the parties.
203. D issued a promissory note payable to the order of C for a debt of P 10,000.00 which
bears interest at 2% per month.
160
OBLIGATIONS
on due date, X went to the place of D to collect the debt 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 the payment because he does not want the interest to accrue but he is at a loss as to
whether he would make the payment to X. In this case the course of action that you will
advise D to take is:
a. consignation.
b. tender of payment.
c. application of payment.
d. dation in payment.
204. The obligation is not extinguished by reason of the loss of the thing through a
fortuitous event in three of the following cases. Which is the exception?
a. When the nature of the obligation requires the assumption of risks.
b. When the debtor has incurred in delay.
c. 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.

d. When the debtor has promised to deliver the same thing to two or more persons
who do not have the same interest.
205. In order that condonation may extinguish an obligation involving a movable property
whose value exceeds P5,OOO.OO -
a. It is sufficient that the condonation and acceptance are in writing, even a private
one.
b. It is required that the condonation and acceptance must be in a public instrument.
c. The delivery of the document evidencing the debt is sufficient since the property is
movable.
d. The condonation and acceptance may be made
206. 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 that the two debts must be due.
OBLIGATIONS
161
In addition, the following requisites must be present, except:

a. That both debts consist of a sum of money or if the things due are consumable, that
they be of the same kind and also of the same quality if the latter has been stated.
b. That both debts be liquidated and demandable.
c. That the debts must have the same amount.
d. That over neither of them there should be any retention or controversy commenced
by third persons and communicated in due time to the debtor.
207. D owes C P20,OOO.OO due on June 20. C owes D P 14,000.00 due on June 15. On
June 12, C assigned his right to X. D consented to such assignment without any reservation of
his right to the compensation. On June 20, X may collect from D:
a. P20,OOO.OO.
b. P6,OOO.OO.
c. P14,OOO.OO.
d. Nothing.
208. D owes C P30,OOO.00 due on June 20. C owes D the following debts: P 15,000.00
due on June 2; P4,000.00 due on June 14; P6,000.00 due on June 16; and P3,000.O 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:
a. P30,OOO.OO.

b. P5,OOO.OO.
c. P2,OOO.OO.
d. Nothing.
209. Refer to No. 208. 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 on June 20 when X went
to D to collect that D learned of the assignment. In this case, X may collect from D:
a. P30,OOO.OO.
b. P5,OOO.OO.
162
OBLIGATIONS
c. P2,OOO.OO.
d. Nothing.
210. 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 of the debtor is known as:
a. Delegacion.
b. Expromision.
c. Objective novation.
d. Subrogation.
211. Assume the facts in No. 210. 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. 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.
212. D is obliged to deliver a 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 could no
longer run.
a. The obligation to deliver the horse is not extinguished since only one leg of the horse
was injured.
b. The obligation is extinguished because the injury to the right front leg of the horse is
a partial loss that is so important in relation to obligation.
c. The obligation to deliver the horse is not extinguished because the horse could still
walk'.
OBLIGATIONS
163
d. The obligation of D is not extinguished because he can get a horse from other
sources.
213. D is obliged to pay C P 10,000.00 on or before June 30. C is obliged to pay D P
10,000.00 on June 15. Who may claim compensation on June 15?
a. D only.
b. C only.
c. Either D or C.
d. Neither D nor
214. D is obliged to pay C P 10,000.00 on or before June 15. C is obliged to pay D P
10,000.00 on June 30. Who may claim compensation on June 15?
a. D only.
b. C only.
c. Either D or C.
d. Neither D nor C.
215. A, 17 years old, B, 25, and C, 30, jointly borrowed P6,OOO.OO from X. How much
may X collect from B?
a. P6,OOO.OO.
b. P4,OOO.OO.
c. P2,OOO.OO.
d. Nothing, because A was a minor at the time the obligation was constituted.
216. Refer to No. 215. Assume the same facts except that the debtors are bound
solidarily. How much may X collect from B?
a. P6,OOO.OO.
b. P4,OOO.OO.
c. P2,OOO.OO.
d. Nothing, because A was a minor at the time the obligation was constituted.

217. A, B and C jointly borrowed P3,000.00 from X. On due date, A was insolvent. How
much may X collect from B?
a. P3,OOO.OO.
b. P2,OOO.OO.
c. PI,500.OO.
d. PI,OOO.OO
218. Refer to No. 217. Assume the same facts except that the debtors are solidarily
bound. How much may X collect
from B?
a. P3,OOO.OO.
b. P2,OOO.OO.
c. P1, 5OO.OO.
d. PI,OOO.OO.
219. A, B and C are jointly liable to X in the amount of P 12,000.00. On due date, X
demanded payment from A but A refused to pay. How much may X collect from B?
a. PI 2,000.00 plus damages for delay.
b. P8,000.00 plus damages for delay.
c. P4,000.00 plus damages for delay.
d. P4,000.00 without any damages.
220. Refer to No. 219. Assume the same facts except that A, B and C are solidarily liable
to X in the amount of P 12,000.00. On due date, X demanded payment from A but A refused
to pay. How much may X collect from B?
a. P 12,000.00 plus damages for delay.
b. P8,000a00 plus damages for delay.
c. P4,000. 00 plus damages for delay.
d. P4,000.00 without any damages.
221. During a 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:
a. D must reimburse C although C acted without the consent of D.
b. D is not required to reimburse C because C acted without D'S consent.
c. D must reimburse C because there was an implied contract between D and C.
d. D need not reimburse C because C's• act of saving D'S properties is a gratuitous act
that requires no compensation.

222. D is obliged to give his only car to C on December 1, 2014' On December 1, 2014, D
did not deliver the car. The
following day, armed men forcibly took the car from D'S garage.
a. D'S obligation to give the car is extinguished.
b. D must give another car of the same kind and quality to C because he was already in
delay when the loss took place.
c. D is obliged to pay damages to C.
d. D must give another car or pay damages at the option of C.
223. Orlando brought his typewriter at the shop of Remigio for repair. Orlando made
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.
I. Orlando can have the typewriter repaired by another repair shop with the repair cost
thereof chargeable to Remigio.
II. Orlando can compel Remigio to undertake the repairs.
III. Orlando can ask for damages for the missing parts of the typewriter at the expense
of Remigio.
Which of the above remedies may be availed of by Orlando?
a. 1 and 11.
b. 11 and 111.
c. 1 and 111.
d. All of 1, 11 and 111.
224. D obtained a loan of P30,000.00 from C with G Aa guarantor. C, on the other hand,
owes G P30,000.00. Both debts are due.
I. If C sues D, D may successfully put up the defense of compensation because C owes
G, D'S guarantor.
II. If C sues D, D may not put up the defense of compensation as to what C owes G.
III. If D cannot pay and C sues G, G can put up compensation because C owes him
P30,000.00.
IV. Both D'S debt to C and C's debt to G are extinguished by legal compensation.
166 OBLIGATIONS
a. I and Ill are true.
b. b. Il and IV are true.
c. I and IV are true.
d. Il and Ill are true.

225. The following obligations are demandable at once, except:
a. An obligation with a condition antecedent.
b. An obligation without any term or condition.
c. An obligation with an in diem period.
d. An obligation with a condition not to do an impossible thing.
226. The following statements are presented to you:
I. It may or may not happen.
II. It always refers to the future.
III. It may refer to a past event unknown to the parties.
IV. It merely fixes the time for the efficaciousness of an obligation.
a. I and Ill refer to period.
b. I and Ill refer to condition.
c. Il and IV refer to condition.
d. Ill and IV refer to period.
227. The creditor has a right to the fruits of the thing from the time:
a. the thing and its fruits have actually been delivered.
b. the contract is perfected.
c. the obligation to deliver the thing arises.
d. the payment of the price of the thing and its fruits has been made.
228. One of the following is an obligation with a period with a suspensive effect. Which is
it?
a. "I will give you P 5,000.00 per month as support beginning January 1 of next year."
b. "I will give you P5,000.OO per month as support until you finish your law course."
c. "I will give you P5,OOO.00 per month for your medicines if your physical examination
says you are sick."
d. "I will give you P5,000.00 per month as support until you are able to find work."
229. D is obliged to give Object I, Object 2 or Object 3 to Cs the right of choice as to which
object will be delivered to C belongs to:
a. both the parties.
b. D only.
c. C only.
d. neither of the parties.
230. The obligation referred to in the preceding number is:
a. an alternative obligation.
b. a facultative obligation.

c. a conjunctive obligation.
d. a simple obligation
231. Refer to No. 229. Assume the following:
I. Object 1 and Object 2 are lost through D'S fault, and later Object 3 is lost through a
fortuitous event.
II. Object 1 and Object 2 are lost through a fortuitous event, and later Object 3 is lost
through D'S fault.
In your evaluation of the foregoing statements, D'S obligation is extinguished in:
a. both I and Il.
b. neither I nor Il.
c. I only.
d. IL only.
232. D owes C P20,OOO.00 with G as guarantor. C, on the other hand, owes D, PI
5,000.00. Both debts are already due but D is insolvent. In this case —
a. C may collect from G P20,OOO.00.
b. C may collect from G P5,000.00 because a guarantor can set up compensation as
regards what the creditor may owe the principal debtor.
c. C may collect nothing from G because D is insolvent.

d. C may collect PI 5,000.00 from G.
233. 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 persons, be they guarantors or
possessors of mortgages.
a. Substitution.
b. Subrogation.
c. Transfiguration.
d. Transformation.
234. These statements are presented to you:
I. A stipulation that an obligation shall be paid in a currency other than Philippine legal
tender is void.
II. Il. A cashier's check is as good as cash; hence, it is legal tender.
a. Both statements are true.
b. Both statements are false.

c. Only Statement I is true.
d. Only Statement Il is true.
235. If there is a concurrence of two or more creditors and/or two or more debtors in one
and the same obligation, the obligation is presumed to be:
a. individual and collective.
b. solidary.
c. joint and several.
d. joint.
236. 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:
a. P8,OOO.OO from A, P8,OOO.OO from B, and P8,OOO.OO from C.
b. P24,000.00 from either A, B or C.
c. P2,OOO.OO from A, P2,OOO.OO from B, and P2,OOO.OO from C.
d. P6,OOO.00 from either A, B or C.
237. A, B and C are solidary debtors of X in the amount of P30,000.OOe If A is insolvent,

how much may X collect
a. P30,OOO.OO.
b. PIO,OOO.OO.
c. P20,OOO.OO.
d. P15,OOO.OO.
238. A, B and C are solidary debtors of X in the amount of P60,000.00e A, however, was a
minor at the time the obligation was constituted. If X sues B, B will be liable to X for:
a. P60,OOO.OO.
b. P40,OOO.OO
c. P20,OOO.OO.
d. P30,OOO.OO.
239. Donita owed Carmina P200,000.00. The loan is secured by a mortgage of Donita's lot.
After a month Donita paid P2O,OOO.OO. Without the knowledge of Donita, Teresa paid
Carmina P200, 000. 00 believing that Donita still owed the amount of P200,000.00.
a. Teresa can demand P2000, 000. 00 from Donita, and if Donita cannot pay, Teresa can
foreclose the mortgage on the lot.
b. Teresa cannot claim reimbursement from Donita because she paid Carmina without
Donita's knowledge.
c. Teresa can demand P 180,000.00 from Donita, and if Donita cannot pay, Teresa
cannot foreclose the mortgage on the lot.

d. Teresa can recover the amount of P2000, 000. 00from Carmina if Donita refuses to
reimburse Teresa.
240. D borrowed P50,OOO.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.
a. D'S obligation is extinguished by payment by cession.
b. D'S obligation is extinguished by consignation
c. D'S obligation is extinguished by dacion en Pago.

d. D'S obligation is not extinguished at all because the payment should have been in
cash.
241. Legal compensation will not take place if:
a. the debts have different due dates.
b. the debts are payable at different places.
c. there is a controversy or retention involving one of the debts commenced
by third persons and communicated in due time to the debtor.
d. both debts consist in a sum of money.
242. D owes C the following debts: P3,000.OO due on July P5,OOO.OO due on July 6,
P2,OOO.OO due on July 15, and P2,000.00 due on July 25. If today is July 22, and D gives
P2,OOO.00 to C but neither he nor C indicates the debt to which the payment shall apply, the
payment shall be applied to:
a. The debt due on July 15 or July 25 because the payment is of the same amount as
the said debts.
b. To any of the debts due on July 1 or July 6 in partial payment or to the debt due on
July 15 in full payment, since the said debts have already become due as of the time the
payment is made.
c. To the debts due on July 1, July 6 and July 15 proportionately at P600.00, P 1,000.00,
and P400.00, respectively.
d. To all the debts proportionately in the ratio of
243. Which of the following is a void obligation?
a. “D to give C P50,000.00 if C does not fly to the moon."
b. "D to give C P50,000.00 if D wins in the sweepstakes." D has not yet bought the
sweepstakes ticket.
c. "D to give C P50, 000. 00 if D marries X."
d. "D to give C P50, 000.00 if C marries X."

244. D borrowed P200,000.00 from C. The debt is payable after 6 months and is secured
by a chattel mortgage on D'S growing crops. A month before due date, the crops were
completely destroyed by Typhoon "Ondoy."
a. D'S obligation to pay the loan is extinguished.
b. C may now demand immediate payment of the loan unless D furnishes another
security.
c. C must wait for the due date before he can demand payment because the loss of
the security is without the fault of D.
d. Both the loan obligation and the chattel mortgage are extinguished due to fortuitous
event.
245. 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
a. both the loan and the guaranty.
b. only the loan.
c. only the guaranty.
d. neither the loan nor the guaranty with G now as the new creditor.
246. M makes an interest-bearing promissory note amounting to P 100,000.00 payable to
the order of P. The back of the promissory note 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:
a. Pay to H because as holder and indorsee, he acquired title to the note.
b. Pay to R because as the agent of C, he is an extension of the personality of C.
c. Go to court and deposit the payment by way of consignation.
d. Just ignore the two. It is not your fault that they have conflicting claims.
247. When the debtor binds himself to pay as soon as he has the means is:
a. The obligation is void because payment dependent upon a condition that is
potestative on.
b. The obligation is valid, but the creditor must go to and ask the court to fix the period
for the payment of the obligation.
c. The obligation is void because there is no meeting of minds between the parties as
to an essential element thereof.

d. The obligation is suspended until the debtor has the means to pay his debt.
248. The obligation of a school to provide its students a safe and secure environment and
an atmosphere conducing to learning is an obligation arising from:
a. law.
b. contract.
c. quasi-contract.
d. quasi-delict.
I. There is no delay in obligations not to do.
II. Delay is applicable only to the debtor, never to the creditor.
250. The principle of negotiorum gestio does not apply:
a. When the property or business is not neglected or abandoned.
b. When the officious manager has been tacitly authorized by the owner.
c. In both (a) and (b).
d. In neither (a) nor (b).
251. A, B and C are indebted to W, X, Y and Z in the amount of P240, 000. 00. In this case:
a. W can collect P8,OOO.OO each from A, B and C. Then, he must give P6,OOO.OO each
to X, Y and Z.
b. W can collect P2,OOO.OO each from A, B and C. Then, he need not give any amount
to X, Y and Z.
c. W can collect P6,000.00 from either A, B or C. Then, he need not give any amount to
X, Y and Z, from the amount he collected.
d. W can collect P24,000.00 from either A, B or C. Then, he must give P6,000.00 each to
X, Y and Z.
252. 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 date. Thus, on January 31, Delia
delivered her diamond ring to Corazon. Based on the foregoing facts, which of the following
statements is incorrect?
a. Delia's loan obligation of P50,000.00 was extinguished on January 25.

b. Delia had an obligation to give the diamond ring to C on January 31.
c. Delia's loan obligation of P50,000.00 was extinguished on January 31 when she
delivered her diamond ring to Corazon.
d. Delia's loan obligation of P50,000.00 was extinguished by novation.
253. A, B and C are liable individually and collectively to X in the amount of P30,000.00.
On due date, X demanded payment from A. However, C is insolvent. In this case:
a. X may collect P20,000.00 only from either A or B.
b. X may collect P30,000.00 from either A or B.
c. X may collect from A P 15,000.00 only, and from B, P15,OOO.OO only.
d. X may collect from A P 10,000.00 only, and from B, PIO,OOO.OO only.
254. D obliged himself to give P50,OOO.00 to C if C does not fly to the moon.
a. The obligation is immediately demandable.
b. Both the obligation and the condition are void.
c. The condition of the obligation is Physically impossible
d. The obligation becomes demandable at some future time.
255. On January I, 2015, D borrowed The P500,OOO.OO from and C with interest at 10%
per annum the interest are due on December 31, 2015.
a. D may compel C to accept payment before December 31, 2015.
b. C may compel D to make payment before December 31, 2015.
c. Both (a) and (b) are correct.
d. Both (a) and (b) are incorrect.
256. Refer to the facts in the preceding number. Assuming that on due date, D has only
P50, 000. 00 and he offers this amount to C who is willing to accept it as partial payment.
a. The payment shall applied in its entirety to the principal. D still owes C the interest of
P50,OOO.OO.
b. The payment shall be applied first to the interest of P50,000.00. The balance of
P450,000.OO shall be applied to the principal; hence, D still owes C P50,000.00 for the
principal which will continue to bear interest.
c. The payment of P500,000.00 shall be applied proportionately to the principal and
interest.
d. The entire obligation (principal and interest) is extinguished because C accepted the
payment without any protest or objection.

257. D obtained a loan of P from C. The debt' which is due on December 31, 2015, is
secured by chattel mortgage 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.
a. D'S obligation to extinguished because the security thereof was lost due to fortuitous
event.
b. D'S obligation P 1,000,000.00 became demandable on June 1, 2015, unless he gives
another security.
c. D'S obligation to give P 1,000,000.00 and the chattel mortgage are extinguished by
reason of fortuitous event.
d. D'S obligation to give P 1,000,000.00 subsists, but C cannot demand its payment
before December 31, 2015.
I. Payment is still possible when two persons are debtors and creditors of each other.
II. Payment is impossible when a person is both the debtor and the creditor of the
same obligation.
d. Only Statement I false.
259. These statements. are presented to you:
I. A quasi-contract is an implied contract.
II. There is no delay in obligations not to do.
d. Only Statement I false.
260. 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 debt 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.
a. D'S new obligation is a facultative obligation.
b. D is not obliged to pay damages to C for the loss of the ring due to his fault.
c. The right of choice as to which thing will be delivered belongs to C.
d. The loss of the ring deprived D of the right of choice.
261. The waiver of an action for fraud is valid in the case of:

A.future fraud.
B. past fraud.
C. both (a) and (b)
D. in neither (a) nor (b).
262. D is indebted to C for PIOO,OOO.OO which is already due. D offers to give a certified
check to C to settle the debt.
a. If C refuses to accept the check, D may resort to its consignation to settle the
obligation.
b. If C refuses to accept the check, D may replace the check with 100,000 pieces of PI .
00 coin and compel C to accept it.
c. If C refuses to accept the check, D may replace the check with 5,000 pieces of
P20.OO bill, and if C refuses to accept it, D may consign the payment.
d. If C accepts the certified check, D'S obligation is automatically extinguished.
263. Which of the following statements concerning facultative obligation is correct?
a. Two or more prestations are due.
b. The right to make the substitution belongs to the debtor only.
c. The loss of the substitute due to the fault of the debtor will make him liable for
damages.
d. The loss of the principal thing due to fortuitous event will make the debtor obliged to
deliver the substitute.
264. Which of the following is not a feature of payment by cession?
a. There is a plurality of creditors.
b. The debtor must be insolvent.
c. All the debtor's properties are generally involved in the cession
d. The debtor is totally released from his liabilities
265. Which of the following is not a feature of dacion en pago?
a. There may be two or more creditors involved.
b. The debtor must be insolvent.
c. Not all the properties of the debtor are involved.
d. The debtor is generally released from his obligation/ s.
266. D borrowed P 10,000.00 from C. On due date, C was already insane. Nonetheless, D
gave C P 10,000.00 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 P 1,500.00 in a
gambling game, and used P5,500.OO to buy his food. In this case:
a. Payment is valid only up to P3,000.00.
b. Payment is valid only up to P8,500.00.
c. Payment is valid up to P 10,000.00.
d. The total payment is not valid because C was incapacitated at the time, he received
the payment.
267. Consignation, without any tender of payment, will release the debtor from liability in
the following cases, except when:
a. The creditor is absent or unknown, or does not appear at the place of payment.
b. The creditor is capacitated to receive payment.
c. Without just cause, the creditor refuses to give a receipt.
d. Two or more persons claim the same right to collect.
268. D owes C P20,000.00 payable on or before March 31, 20150 C is obliged to pay D
P20,OOO.OO on March 15, 2015. As a result, which of the following is incorrect?
a. C may claim compensation on March 15, 2015.
b. D may claim compensation on March 15, 2015.
c. may claim compensation on March 31, 2015 if his debt to C, and D'S debt to him,
remained unpaid as of such date.
d. D may claim compensation on March 31, 2015 if C's debt to him, and his own debt to
C, remained unpaid as of such date.
269. D owes C P30,OOO.OO due on April 1, 2015. C owes D compensation may possibly
take place today if today is February 14, 2015?
a. Voluntary
b. Legal
c. Facultative
d. Judicial
270. When a third person pays the creditor without intending to be reimbursed and the
debtor did not give his consent to the donation:
a. The payment is valid as to the creditor who accepted it.
b. The debtor is under no obligation to reimburse the third person.
c. The payment is not valid because no one can pay the debt of another.
d. The creditor is obliged to return the payment to the third person.
271. The following obligations are immediately demandable, except:
a. pure obligation
b. obligation with a period with a resolutory effect.
c. obligation with a negative impossible condition.
d. obligation with a condition antecedent.

I. An obligation cannot exist without a contract.
II. A contract can exist without an obligation.
273. 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?
a. P500,OOO.OO.
b. P250,OOO.OO
c. P1,OOO,OOO.OO
d. Some other amount.
274. A stipulation that demand shall not be required in order to make the debtor in
delay is generally to the disadvantage
a. debtor.
b. creditor.
c. both the debtor and the creditor.
d. neither the debtor nor the creditor.
275. The absence of stipulation on liability in case of fortuitous event is generally to the
advantage of the:
a. debtor.
b. Creditor
c. both the debtor and the creditor.
d. neither the debtor nor the creditor.
276. These statements concerning legal compensation are presented to you:
1. Legal compensation cannot take place if the debts have different due dates.
11. Legal compensation may take place although the debts are payable at different places.

277. A, B and C are solidarily indebted to X for P9,000.00. X is indebted to A for
P9,000.00. Both debts are due.
a. There is legal compensation up to P3, 000. 00
b. There is legal compensation up to P6,000.00.
c. There is legal compensation up to P9,000.00
d. A has no right to demand reimbursement from B and C at P3,OOO.OO each.
278. Refer to the same facts in the preceding number except that the debtors are jointly
liable to X. As a result, which of the following statements is incorrect?
a. there is legal compensation up to P3,000.00
b. B and C are still indebted to X for P3,000.00 each.
c. X still owes A P6,OOO.OO.
d. There is no legal compensation at all.
279. It is a mode of extinguishing an obligation which has a two-fold function: One is to
extinguish an old obligation and the other to substitute a new one in its place.
a. Novation
b. Compensation
c. Remission
d. Consignation
280. D owes C the following debts: P4,000.00 due on February 1, P7,OOO.OO due on
February 5, P5,OOO.OO due on February 10, and P4,000.00 due on February 20. By
agreement 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 P4,000.00 to C as payment today, to which
debt may D apply the payment?
a. To the debt due on February 1 amounting to P4,OOO.OO only.
b. To the debt due on February 20 amounting to P4,OOO.OO only.
c. To the debt due on February 1 or February 20, at his option.
d. To all the debts proportionately at P800.00, P1,400.00, PI,OOO.OO, and P800.OO,
respectively.
281. Refer to the preceding number. 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?
a. The debt due on February 1 amounting to P4,OOO.OO only.
b. The debt due on February 20 amounting to P4,OOO.OO only.

c. To the debts due on February 1, February 5 and February 10 proportionately at
PI,000.00, PI,750.OO, and PI,250.OO, respectively.
d. To all the debts proportionately at P800.OO, P1,4000.00, PI,OOO.OO, and P800.OO,
respectively.
282. The young and other products of animals, produced with the intervention of human
labor are considered as:
a. civil fruits
b. industrial fruits
c. natural fruits
d. accessions
283. If two or more persons claim the same right to collect from the debtor, the debtor's
appropriate remedy is:
a. tender of payment.
b. consignation.
c. payment by cession.
d. dation in payment.
284. D promised to deliver a specific horse to C on October 31,
2015, with the stipulation that he will give C 100 grams of "shabu" as penalty if he fails to
deliver the horse on the said date. Which obligation is void?
a. The principal obligation only.
b. The penalty only.
c. Both the principal obligation and the penalty.
d. Neither the principal obligation nor the penalty.
285. D is a debtor of C for P20,000.00. 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?
a. Both the debt of P20,000.00 and the pledge of the diamond ring.
b. The debt of P20,OOO.OO only.
c. The pledge of the diamond ring only.
d. Neither the debt of P20,000.00 nor the pledge of the diamond ring is extinguished.
TEST 11 - MATCHING TYPE. Indicate your answers by writing the letter representing the
statement or phrase that best describes, defines or explains the numbered items.

Terms
1. Solutio indebiti
26. Obligation
27. Mora accipiendi

2. Obligation with a penal clause 28.
Positive condition
29. Inflation
3. Delegacion
30. Indivisible obligation

4. Real right
5. Alternative obligation
31. Solidary obligation
6. Ex die 32. Negligence
7. Passive solidarity
33. Expromision

8. Joint obligation 34. Industrial fruits
9. Personal right
35. Reciprocal obligation
10. Efficient cause 36. In diem
11. Determinate thing 37. Suspensive condition
12. Payment by cession 38.

Condonation
13. Fortuitous event 39. Deflation
14. Day certain
40. Facultative obligation
15. Active solidarity 41. Negative condition
16. Application of payment 42. Negotiorum gestio
17. Dation in payment 43. Condition
18. Potestative condition 44. Payment
19. Accessories 45. Legal tender

20. Prestation 46. Generic thing
21. Natural fruits 47. Civil fruits
22. Penal clause 48. Resolutory condition
23. Unilateral obligation 49. Consignation
24. Subrogation
50. Confusion
25. Accion pauliana
Statements

A. The happening thereof extinguishes the obligation.

B. The reason why the obligation exists.
C. Several prestations are due but the complete performance of one of them
extinguishes the obligation.
D. Assumption of the obligation by a third person upon the initiative of the debtor.
E. Return of what has been paid by mistake.
F. An accessory undertaking to assume greater liability in case of breach in the
obligation.
G. It cannot be foreseen, or even if foreseen is inevitable.
H. There is a greater liability in case of breach in performance.
I. Enforceable only against a definite passive subject.
J. Choosing the debt to which payment is to be applied.
K. K. It never perishes.
L. Only one of the parties to the obligation is obliged to comply with a prestation.
M. Spontaneous products of the soil and the young and other products of animals.
N. Added to a thing for its better use, enjoyment or perfection.
O. Assignment of the debtor's properties to his creditors.
P. It consists of giving, doing or not doing something.
Q. The obligations arise out of the same cause and must be fulfilled at the same time.
R. Only one prestation is due but the debtor may render another in substitution.
S. Delivery of money or performance of an obligation in any other manner.
T. Juridical necessity to give, to do or not to do.
U. The substitution of another person in the place of the creditor, where the former
succeeds to the right of the creditor in relation to the debt.
V. That which the debtor may compel the creditor to accept as payment.
W. Products of the soil with the intervention of human labor.
X. That which must necessarily come although it may not be known when.
Y. Delay on the part of the creditor.
Z. A sharp sudden increase in money or credit or both without a corresponding increase
in business transactions.
AA. Management of the property or affairs of another without his consent.
BB. One who has the right to demand performance of the obligation.
CC. Obligation not susceptible of partial performance.
DD. Enforceable against the whole world.

EE. The remedy of creditors to impugn contracts entered into by the debtor to defraud
them.
FF. Period with a suspensive effect.
GG. They refer to those arising out of a juridical relation, such as the rent of an
apartment.
HH. An uncertain event that wields an influence on a legal relation.
II. Delivery and transmission of ownership of a thing by the debtor to his creditor to
settle a monetary obligation.
JJ. Any one of the debtors may be held liable for the whole obligation, and any one of
the creditors is entitled to demand payment of the whole obligation.
KK. The condition that some event will not happen at a determinate time.
LL. Delivery of the sum or thing due with the judicial authority.
MM. Solidarity on the part of the debtors.
NN. Depends upon the sole will of one of the contracting parties.
OO. Omission of the diligence required by the nature of the obligation and corresponds
with the circumstances of the person, of the time, and of the place.
PP. Each debtor is liable only for a proportionate part of the debt, and each creditor is
entitled only to a proportionate part of the credit.
QQ. Period with a resolutory effect.
RR. The reduction in volume in circulation of the medium of exchange.
SS. Substitution of debtor initiated by a third person.
TT. Gratuitous abandonment by the creditor of his right to the obligation.
UU. Qualities of debtor and creditor are merged in the same person.
VV. The happening thereof gives rise to an obligation.
WW. The condition that some event happens at a determinate time.
XX. Particularly designated or physically segregated from all others of the same class.
YY. None of the foregoing.
TEST III TRUE OR FALSE. Write the word "TRUE" if the statement is true, and the word 'FALSE'
if the statement is false
1. In an obligation to give a determinate thing which is subject to a suspensive condition, the
creditor has a right to the fruits of the thing upon the perfection of the obligation.
2. A person criminally liable is also civilly liable.

3. Obligations arising from contracts have the force of law between the contracting
parties.
4. A natural obligation cannot be enforced in a court of
5. A person obliged to give something is also obliged to take care of it with the diligence
of a father of a good family, unless the law or stipulation of the parties requires a greater
degree of care.
6. If the debtor fails to perform an obligation to do, the creditor may compel the debtor
to comply with the obligation.
7. If an obligation to do has been poorly done, the creditor may have the same be
undone at the expense of the debtor.
8. As a general rule, the debtor incurs in delay if he does not perform his obligation on
the date it is due.
9. If the obligation consists in the delivery of a determinate thing, the debtor who
incurs in delay shall not be responsible for loss due to fortuitous event.
10. A waiver of an action for future fraud is valid.
11. In an obligation to give an indeterminate thing, the loss or destruction of anything of
the same kind will extinguish the obligation if the cause of the loss is a fortuitous event.
12. Acts of men such as armed robbery or piracy are considered fortuitous events if they
occur independently of the debtor's will.
13. As a general rule, rights acquired in virtue of an obligation are not transmissible.
14. An obligation subject to a resolutory condition is demandable at once.
15. An obligation which is subject to a suspensive condition that is potestative on the
part of the debtor at the same time, is valid.
16. An obligation where the debtor binds himself to pay when his means permit him to
do so is a conditional obligation.
17. An obligation which is demandable upon the death of a person is an obligation with a
period.
18. The condition not to do an impossible thing shall be considered as not having been
agreed upon. In such case, the obligation is immediately demandable.
19. The condition that some event happen 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.
20. The condition shall be deemed fulfilled if the debtor voluntarily prevents its
fulfillment.

21. The effects of a conditional obligation to give, once the condition has been fulfilled
shall retroact to the day of the constitution of the obligation.
22. A thing, although it still physically exists, may be considered lost if it goes out of
commerce.
23. In an obligation to give a determinate thing which is subject to a suspensive
condition, the deterioration of the thing without the debtor's fault shall render the debtor
liable for damages.
24. A condition may refer to a past event unknown to the parties.
25. If the thing is improved at the expense of the debtor before the fulfillment of a
suspensive condition, the debtor may demand reimbursement of such expense from the
creditor.
26. Whenever a period is designated in an obligation, it shall be presumed to have been
established for the benefit of the debtor.
27. The debtor does not lose the right to make use of the period if the security that he
has given is lost due to a fortuitous event.
28. The period in an obligation always refers to the future.
29. In alternative obligations, the right of choice belongs to the creditor unless it has
been expressly granted to the debtor.
30. In alternative obligations, the creditor may be compelled to receive part of one and
part of another undertaking.
31. In a facultative obligation, the loss of the substitute through a fortuitous event
before the substitution has been made by the debtor, shall have effect on the debtor's
obligation to deliver the principal thing.
32. When there are two or more debtors and/or two or more creditors in one and the
same obligation, the obligation is presumed to be a solidary obligation.
33. Solidarity may exist although the creditors and debtors may not be bound in the
same manner and by the same periods and conditions.
34. Where an instrument containing the words "I promise to pay", is signed by two or
more persons, they are deemed to be jointly and severally liable.
35. In a joint indivisible obligation, a demand made by one of the joint creditors against
all the joint debtors is a valid demand.
36. A solidary debtor who obtains remission of the whole obligation is entitled to
reimbursement from his co debtors.
37. A solidary creditor may assign his rights in the obligation the consent of the other
creditors.

38. If an insolvent solidary debtor cannot reimburse his share to the debtor paying the
obligation, such share shall be borne by all his co-debtors in proportion to the debt of each.
39. A joint creditor in a joint indivisible obligation may validly renounce or condone the
whole obligation.
40. In obligations with a penal clause, the penalty shall substitute the indemnity for
damages and the payment of interests, if there is no stipulation to the contrary.
41. The nullity of the penal clause in an obligation carries with it the nullity of the
principal obligation.
42. As a rule, the creditor may demand fulfillment of the obligation and the penalty at
the same time.
43. Payment means not only the delivery of money but also to the performance of the
obligation in any other manner.
44. A third person who has an interest in the fulfillment of the obligation, such as a
guarantor, may compel the creditor to accept payment.
45. Payment made in good faith by the debtor to a person in possession of the credit
releases him from liability.
46. Payment made for an obligation which is interest-bearing must first be applied to the
principal before the interest.
47. Payment to an incapacitated creditor shall be valid if he has kept the payment.
48. The debtor of a thing may compel the creditor to accept a different one if the latter
is more valuable than that which is due.
49. If an obligation is physically divisible, the debtor may compel the creditor to accept
partial payments.
50. When the debt is in part liquidated and part unliquidated the creditor may demand
and the debtor may affect the payment of the former without waiting for the liquidation
51. The debtor may compel the creditor to accept a certified check as payment since the
bank guarantees the check to be covered with sufficient funds.
52. Payment by a third person who does not intend to be reimbursed by the debtor shall
be deemed to be a donation which requires the consent of the debtor. However, even if the
debtor does not give his consent payment shall nevertheless be valid with respect to the
creditor.
53. Payment may be applied to a debt not yet due if the term was constituted in favor of
the party making the application.
54. For dacion en pago to apply, the debtor must be insolvent.

55. In payment by cession, the creditors become the owners of the properties
abandoned by the debtor for the payment of his debts.
56. Whenever the thing is lost while in the possession of the debtor, it shall be
presumed to have been lost through his fault.
57. The debtor shall be released totally from his debts when he assigns his properties to
his creditors.
58. Consignation without tender of payment is sufficient if two or more persons claim
the same right to collect.
59. Before the court has declared that the consignation has been properly made or the
creditor has accepted the consignation, the debtor may withdraw the sum or thing deposited
in court as a matter of right.
60. When the debt of a thing certain proceeds from a criminal offense, the debtor shall
be exempted from the payment of the price if the thing is lost through a fortuitous event.
61. In obligations to do, the debtor's obligation is extinguished if the prestation becomes
physically impossible due to his fault.
62. The condonation or remission of an obligation must be accepted in order for it to be
extinguished.
63. Merger which takes place in the person of the principal debtor or creditor
extinguishes the obligation of guaranty.
64. A debt which consists in sum of money and another debt which consists in a
consumable thing are extinguished by legal compensation as long as both debts have the
same amount and are already due.
65. The condonation of a debt in money exceeding P15,00.00 to be valid requires that
the condonation and the acceptance must be in public instrument.
66. The remission of the principal obligation carries with it the remission of the accessory
obligation.
67. Confusion which takes place in the person of the guarantor extinguishes the principal
obligation
68. The parties may agree upon the compensation of debts that are not yet due.
69. Legal compensation takes place by operation of law even if the debts are payable at
different places.
70. Compensation cannot be set up against a creditor who has a claim for support by
gratuitous title.
71. Novation may take place by changing the object or principal conditions of the
obligation.

72. If the old obligation is void, the novation will still be valid if the new obligation is
valid.
73. If the new obligation is void, the original one shall subsist, unless the parties
intended that the old obligation shall be extinguished in any event.
74. Conventional subrogation requires the consent of the original parties and the third
person.
75. When the principal obligation is extinguished as a consequence of novation,
accessory obligations are extinguished except if they may benefit third persons who did not
give their consent.
ANSWERS TO DIAGNOSTIC EXERCISES

OBLIGATIONS
TEST 1 – MULTIPLE CHOICE
1. D 36. B 71. B 106. C
2. D 37. B 72. A 107. B
3. A 38. A 73. C 108. A
4. B 39. B 74. C 109. C
5. C 40. B 75. A 110. C
6. A 41. B 76. C 111. B
7. C 42. A 77. B 112. C
8. C 43. D 78. B 113. A
9. C 44. B 79. B 114. A
10. D 45. B 80. B 115. C
11. D 46. B 81. D 116. D
12. D 47. C 82. C 117. D
13. A 48. A 83.A 118. C
14. B 49. A 84. B 119. B
15. D 50. D 85. C 120. B
16. B 51. B 86. C 121. C
17. C 52. D 87. C 122. B
18. D 53. C 88. B 123. D
19. C 54. C 89. C 124. A
20. D 55. B 90. A 125. B
21. D 56. A 91. A 126. A
22. A 57. A 92. C 127. D
23. A 58. D 93. B 128. B
24. C 59. C 94. B 129. C
25. C 60. D 95. D 130. B
26. B 61. A 96. A 131. B
27. A 62. C 97. B 132. A
28. A 63. B 98. C 133. B
29. A 64. A 99. C 134. A
30. D 65. C 100. D 135. D
31. B 66. B 101. D 136. B
32. D 67. A 102. C 137. C
33. A 68. C 103. D 138. A
34. C 69. C 104.A 139. B
35. C 70. A 105. B 140. C
141. B 171. C 201. C 231.C 261.B

142.C 172.A 202.B 232.B 262..C
143. C 173.D 203.A 233.B 263.B
144. C 174.D 204.C 234.B 264.D
145. A 175.B 205.A 235.D 265.B
146. C 176. B 206.C 236.S 266.B
147. C 177.D 207.A 237.C 267.B
148. B 178.C 208.B 238A. 268.A
149. B 179.B 209.C 239.B 269.A
150. C 180.D 210.A 240.C 270.A
151. A 181. C 211.C 241.C 271.D
152. A 182.D 212.B 242.C 272.B
153. C 183. A 213.A 243.C 273.C
154. C 184.A 214.D 244.B 274.A
155. A 185.B 215.C 245.C 275.A
156. D 186. A 216.B 246.C 276.D
157. B 187.B 217.D 247.B 277.C
158. B 188.B 218.A 248.B 278.D
159. D 189. D 219.D 249.C 279.A
160. A 190. A 220.A 250.C 280.C
161. C 191. D 221. A 251.B 281.C

162. A 192.B 222.A 252.C 282.C
163. C 193. C 223.C 253.B 283.B
164. C 194. B 224.D 254.A 284.B
165. C 195. B 225.A 255.D 285.C
166. C 196. A 226.B 256.B
167. C 197. D 227.C 257.B
168.C 198. C 228.A 258.A
169. B 199. D 229.B 259.D
170. A 200. A 230.A 260.B
TEST II – MATCHING TYPE

1. E 11.XX 21.M 31.JJ 41.KK
2.H 12.O 22.F 32.OO 42.AA
3.D 13.G 23.L 33.SS 43.HH
4.DD 14.X 24.U 34.W 44.S
5.C 15.YY 25.EE 35.Q 45.V
6.FF 16.J 26.T 36.QQ 46.K
7.MM 17.II 27.Y 37.VV 47.GG
8.PP 18.NN 28.WW 38.TT 48.A
9.I 19.N 29. Z 39.RR 49.LL
10B. 20.P 30.CC 40.R 50.UU
TEST III – TRUE OR FALSE

1.FALSE 16.FALSE 31.TRUE 46.FALSE 61.FALSE
2.TRUE 17.TRUE 32.FALSE 47.TRUE 62.TRUE
3.TRUE 18.TRUE 33.TRUE 48.FALSE 63.TRUE
4.TRUE 19.TRUE 34.TRUE 49.FALSE 64.FLASE
5.FALSE 20.TRUE 35.FALSE 50.TRUE 65.FALSE
6.FALSE 21.TRUE 36.FALSE 51.FALSE 66.TRUE
7.TRUE 22.TRUE 37.FALSE 52.TRUE 67.FALSE
8.FALSE 23.FALSE 38.TRUE 53.TRUE 68.TRUE
9.FALSE 24.TRUE 39.FALSE 54.FALSE 69.TRUE
10.FALSE 25.FALSE 40.TRUE 55.FALSE 70.TRUE
11.FALSE 26.FALSE 41.FALSE 56.TRUE 71.TRUE
12.TRUE 27.FALSE 42.FALSE 57.FALSE 72.FALSE
13.FALSE 28.TRUE 43.TRUE 58.TRUE 73.TRUE

14. TRUE 29.FALSE 44.TRUE 59.TRUE 74.TRUE
15.FALSE 30.FALSE 45.TRUE 60.FALSE 75 TRUE.

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OBLIGATIONS QUIZZERS

OBLIGATIONS - DIAGNOSTIC EXERCISES

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

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

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

4. It is a wrong committed without any pre-existing relations between the parties.

OBLIGATIONS QUIZZERS Page 1

8. One of the following is a determinate thing. Which is it?

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

OBLIGATIONS QUIZZERS Page 2

15. One of the following obligations is not immediately demandable.

OBLIGATIONS QUIZZERS Page 3

17. D is obliged to give C P10,000.00 if X dies. This is an example of:

OBLIGATIONS QUIZZERS Page 4

24. A, B, C and D are obliged to give V, W, X, Y and Z P20,000.00

OBLIGATIONS QUIZZERS Page 5

29. The following obligations are divisible, except an obligation:

OBLIGATIONS QUIZZERS Page 6

31. Consider the following statements:

OBLIGATIONS QUIZZERS Page 7

OBLIGATIONS QUIZZERS Page 8

41. M owes P P10,000.00. The obligation is evidenced by a promissory note. Subsequently; P

OBLIGATIONS QUIZZERS Page 9

OBLIGATIONS QUIZZERS Page 10

50. Refer to No. 49. Which of the following statement is incorrect??

OBLIGATIONS QUIZZERS Page 11

52. Refer to No. 51. Which of the following statements is incorrect?

OBLIGATIONS QUIZZERS Page 12

57. Which of the following is not considered a conditional obligation?

58. The distinction between merger and compensation is that in merger:

OBLIGATIONS QUIZZERS Page 13

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67. One of the following is a valid obligation. Which is it?

OBLIGATIONS QUIZZERS Page 15

69. A, B and C are solidary debtors of X in the amount of P9,000.00. Subsequently, X

OBLIGATIONS QUIZZERS Page 16

OBLIGATIONS QUIZZERS Page 17

75. The return of what has been paid by mistake is known

Items 76, 77, and 78 are based on the following information:

76. What kind of obligation is the new obligation of Dolores?

77. How was the obligation of Dolores to pay P 15,000.00 extinguished?

OBLIGATIONS QUIZZERS Page 18

OBLIGATIONS QUIZZERS Page 19

OBLIGATIONS QUIZZERS Page 20

OBLIGATIONS QUIZZERS Page 21

OBLIGATIONS QUIZZERS Page 22

94. Which of the following statement concerning delay is incorrect?

OBLIGATIONS QUIZZERS Page 23

OBLIGATIONS QUIZZERS Page 24

OBLIGATIONS QUIZZERS Page 25

OBLIGATIONS QUIZZERS Page 26

109.One of the following obligations is void. Which is it?

110.Which of the following obligations is a pure obligation and is demandable at once?

OBLIGATIONS QUIZZERS Page 27

114.Which of the following is an indivisible obligation?

OBLIGATIONS QUIZZERS Page 28

117.One of the distinctions between a facultative obligation and an alternative obligation is

OBLIGATIONS QUIZZERS Page 29

119.Under a contract between D and C, D is obliged to deliver 10 bags of detergent soap to C