OBLIGATIONS & CONTRACTS

8. Demand is not needed to put debtor in default except

1. The obligation of the employer to pay death benefits and funeral expenses for his A. When the law so provides.
employee’s death while in the course of employment as sanctioned by the B. When demand would be useless as when the obligor has rendered it beyond
Workmen’s Compensation Act is one that arises from: his power to perform.
A. Law C. Quasi-contracts C. When the thing is lost due to fortuitous event.
B. Contracts D. Answer not given D. When time is of the essence of the contract.
2. Which of the following is not considered as quasi-contract? 9. Who is liable for the loss of the subject matter by fortuitous event?
A. Solution indebiti A. Creditor C. Both creditor and debtor
B. When the third person, without the knowledge of the debtor, pays the debt. B. Debtor D. None of them.
C. Negotiorum gestio 10. D obliged himself to give a specific house to C on April 15, 2010, stipulating that
D. None of the above. D is liable even if the house is lost through a fortuitous event, and without the
3. A civil liability which involves the return of the object of the crime whenever need of a demand. On the due date, the house was destroyed by a typhoon. Which
possible, plus allowances for any deterioration or diminution of value as may be of the following is correct?
determined by the court to the rightful owner – A. C can compel D to deliver another house.
A. Reparation C. Indemnification B. The obligation is totally extinguished.
B. Restitution D. Imprisonment C. C can require another person to deliver a house at the expense of D.
4. Culpa aquiliana as distinguished from culpa contractual D. The obligation remains to subsist but converted into monetary
A. Proof of due diligence in the selection and supervision of employees is not consideration.
available as a defense. 11. A bound himself to deliver a determinate horse to B on January 15, 2011. On
B. Proof of the contact and its breach is sufficient prima facie to warrant January 16, 2011 the horse was struck and killed by a lightning.
recovery. A. A is liable for the loss of the horse because he was in delay.
C. The negligence of the defendant is merely an incident in the performance of B. A has the obligation to replace the horse.
the obligation. C. A’s obligation is extinguished.
D. The source of liability is the defendant’s negligent act or omission itself. D. B may claim damages from A.
5. A wrong committed independent of contract and without criminal intent is – 12. A obliged himself to deliver a specific cow to B which will be butchered and
A. Culpa contractual C. Delict served to the latter’s guest on the occasion of his wedding on June 20. On June 20
B. Culpa aquiliana D. Quasi-contract A did not deliver the cow. The following day, it was killed due to a flood that
6. The obligor is not liable for a fortuitous event when occurred in their place.
A. There is default or mora on his part. A. A is liable for the loss of the cow because he was in delay.
B. He promised to deliver the same thing to two or more persons. B. A’s obligation has been extinguished.
C. The object is generic. C. A is obliged to replace the cow.
D. The object is determinate. D. A is not liable because the cause of the loss is a fortuitous event.
7. One is not a requisite needed in order that the obligation shall be extinguished by 13. It is not a source of liability which will entitle the injured party to damages:
loss or destruction of the thing due: A. Culpa aquiliana or negligence committed in the performance of a spontaneous
A. When the thing is lost without the fault of the debtor. act.
B. When the thing lost is generic. B. Mora or delay.
C. When the thing is lost before the debtor has incurred in delay. C. Dishonesty, malice or bad faith in the performance of an existing valid
D. When the thing lost is specific. obligation.
 D. Contravention of the tenor of obligation. D. P30,000 plus P3,000 plus legal interest plus damages.
14. Facultative as distinguished from alternative obligation
A. The right of choice is given only to the debtor. 21. Dan owes Che P20,000 due on April 20, 2011. When the debt matured, Dan is
B. Various things are due, but the giving of one is sufficient. paying Che a manager’s check worth P20,000.
C. If one of the prestations is illegal, the others may be valid and the obligation
remains. Question 1: Can Che accept the check?
D. It is impossible to give all except one, that last one must still be given. Question 2: Can Che refuse to accept the check?
15. .In an obligation where only one prestation has been agreed upon, but to Question 3: If Che accepts the check, is the acceptance equivalent to payment?
extinguish the obligation, the debtor is allowed and does render another substitute,
the obligation is Question 1 Question 2 Question 3
A. Facultative obligation C. Alternative obligation A. Yes Yes Yes
B. Simple obligation D. Conjoint obligation B. Yes Yes No
16. An obligation wherein various things are due but the complete performance of all C. No Yes No
of them is necessary to extinguish the obligation D. No No Yes
A. Facultative obligation C. Alternative obligation
B. Simple obligation D. Conjoint obligation 22. The delivery of mercantile documents such as checks will produce the effect of
17. Which of the following statement is false? payment:
A. Obligations to give definite things and those that are not susceptible of A. When through the fault of the creditor they have been impaired.
partial performance shall be deemed to be divisible. B. Upon delivery of the mercantile document.
B. Execution of a certain number of days of work shall be divisible. C. When they are certified by the bank.
C. Accomplishment of work by metrical units are divisible. D. When they are presented to the bank for payment.
D. An obligation to pay a certain amount in ten annual installments is divisible.
18. Which of the following is an indivisible obligation? 23. There being no express stipulation and if the undertaking is to deliver a
A. Execution of a certain number of days of work. determinate thing, the payment shall be made –
B. Accomplishment of work by metrical units. A. At the domicile of the creditor
C. Susceptible of partial performance. B. At the domicile of the debtor.
D. To give definite things. C. Wherever the thing might be at the moment the obligation is to be fulfilled.
19. Statement 1: The indivisibility of an obligation necessarily implies solidarity. D. Wherever the thing might be at the moment the obligation is to be
Statement 2: If the contract is entire and a part is illegal, the whole contract in constituted.
unenforceable.
A. True; False C. False; False 24. Del, a resident of Perez St., Dagupan City, Pangasinan, owes Cony a resident of
B. False; True D. True; True Sampaloc, Manila, P20,000 and the contract fails to stipulate the place of
20. A obligated himself to pay B the amount of P30,000, 30 days after May 1, 2011 payment. The place of payment must be:
plus a penalty of P3,000 if he fails to pay the obligation on due date. After A. Wherever they may see each other upon the maturity of the debt.
demand for payment by B, A offered to pay on July 30, 2011. B can demand from B. In Sampaloc, Manila
A– C. Anywhere in Dagupan
A. P30,000 plus P3,000 plus legal interest. D. In the domicile of Del in Perez St., Dagupan City
B. P30,000 plus legal interest.
C. P30,000 plus P3,000.
25. A preferential right given to a debtor to choose the debt, from among several he 30. Consignation is a mode of payment which extinguishes an obligation. Which of
owes a single creditor, to which he wants his payment to be applied. the following is not a requisite of consignation?
A. Application of payment. C. Cession of payment A. Actual consignation with the proper judicial authorities.
B. Dation in payment D. Tender of payment B. Prior notice has not been made.
C. Existence of a valid debt.
26. This is not an essential element of an application of payment. D. There must be prior notice of consignation to persons interested in the
A. There must be one debtor and one creditor. fulfillment of the obligation.
B. Two or more debtors and two or more creditors.
C. There are two or more debts of the same kind and nature. 31. A obliged himself to give B a car if B places among the top ten in the CPA Board
D. The debts are all due and demandable. Exam. Subsequently, they agreed that A would give B the car if B merely passes
the CPA Board. This is an example of
27. Jo owes John the following debts: A. Mixed novation C. Implied novation
Debt 1 – P10,000 payable January 1, 2011 B. Real novation D. Personal novation
Debt 2 – P10,000 payable February 1, 2011
Debt 3 – P10,000 payable March 1, 2011 32. Three of the following are essential elements of a contract, except:
Debt 4 – P10,000 payable April 1, 2011 A. Cause of the obligation which is established.
Suppose Jo pays John P10,000 on February 1, 2011 without stipulating to B. Consent of the contracting parties.
which debt his payment shall be applied. To which of the following debt can he have C. Motive of the parties.
his payment applied? D. Object certain which is the subject matter of the contract.
A. Debt 1 C. Debt 3 33. The fulfillment of the contract is dependent upon chance
B. Debt 2 D. Debt 4 A. Adhesion C. Commutative
B. Onerous D. Aleatory
28. In payment by cession or when the debtor cedes or assigns his property to his 34. Require consent, subject matter, cause or consideration, and delivery
creditor in payment of his debt, he shall be released from his obligation
A. To the full extent of debtor’s obligations. A. Consensual contract C. Solemn contract
B. Only to the extent of the net proceeds of the thing assigned. B. Real contract D. Formal contract
C. Only to the extent allowed by the debtors. 35. D owes C P500,000. Before the debt was paid, D died leaving his only son, B –
D. Only to the extent allowed by the creditors. A. If the value of the properties left by D is P1,000,000, B is obliged to pay the
entire P1,000,000 to C.
29. Debtor Beth in indebted to Jane, Karla and Babe a total amount of P300,000 made B. If the value of the properties left by D is P500,000, B is obliged to pay the
up of: Jane – P100,000; Karla – P50,000 and Babe – P150,000. On maturity, Beth entirety to C.
cannot pay his obligation so he assigns or cedes to them all his property, to be C. If the value of the properties left by D is P400,000, B is has to pay the entire
sold by the creditors and the proceeds thereof applied to their corresponding P400,000 and make good the deficiency of P100,000.
credits. The creditor’s sold Beth’s properties for only a total of P180,000. Is the D. If B did not inherit anything from D and B is very rich in his own right, B can
obligation of Beth extinguished? Decide. be compelled by C to pay the debt of his father.
A. Yes, the obligation is extinguished. 36. A owes B P200,000 payable December 31, 2010. On December 1, 2010, A died
B. Jane, Babe and Karla will divide the P180,000 equally. leaving property worth P100,000 to his son, C. C should pay B
C. Jane will get P60,000; Karla – P30,000; and Babe – P90,000. A. P100,000 C. P 50,000
D. None of the above. B. P200,000 D. Nothing
 B. Payment D. None of the above
37. In order that a stipulation in favor of a third person in a contract would be valid 43. Ann offered to sell her cellular phone for P10,000 to her friend, Beth. Beth
and binding upon the parties thereto, three of the requisites are mentioned in the accepted the offer but is willing to pay only P8,000. Is there a perfected contract?
following enumerations. Which among them is not a requisite? A. Yes, for a price of P10,000.
A. There must be stipulation in favor of a third person. B. Yes, for a price of P8,000.
B. The contracting parties must have clearly and deliberately conferred a favor C. No, because the acceptance was qualified and it constituted a counter-
upon that third person. offer.
C. The third person communicated his acceptance to the obligor before its D. No, because the offer was rejected.
revocation. 44. An offer made through an agent is accepted from the time acceptance is
D. That there must be an existing agency between either of the contracting communicated to the –
parties and the third person. A. Agent C. Agent and the principal
38. Don borrowed P100,000 from Cris payable in 2 years. The contract stipulates that B. Principal D. Agent and/ or the principal
Don will pay 1% monthly interest equivalent to P1,000 per month to Emy, Cris 45. Money paid or promised to be paid in consideration for an option
brother, on the 25th of each month for Emy’s support. Emy signified his acceptance A. Option period C. Earnest money
before it could be revoked. B. Option money D. Payment
A. Emy has no right to receive the monthly payment on the interest not being a 46. A offered to sell his car for P500,000 to B. A stated that he was giving B a period
party to the contract. of one week within which to raise the amount, and that as soon as B is ready, they
B. Emy is not entitled to the monthly interest unless the money loaned is his. will sign the deed of sale. A had been given P5,000 by b in consideration for the
C. Emy is entitled to the monthly interest because the amount involved per option. Which of the following is not correct?
month is his. A. A cannot sell his car to another because of the money given by B.
D. Emy is entitled to the monthly interest even if he is not a party to the B. A can still sell the car before the acceptance is made known to him by B.
contract because there is a clear case of the stipulation pour autri. C. A can sell the car only after one week.
39. A contract entered into in the name of another by one who has no authority or D. A cannot sell the car until after one week.
legal representation, or who has acted beyond his power. 47. Which of the following is qualified to give consent to a contract?
A. Voidable C. Rescissible A. Unemancipated minors
B. Unenforceable D. Void B. Insane or demented persons.
40. Pat sold to Mat the computer owned by Cathy without Cathy’s authority. The C. Deaf mutes who do not know how to write.
contract is D. Deaf mutes who know how to read but do not know how to write.
A. Perfectly valid C. Void 48. Contracts entered into during lucid-interval
B. Voidable D. Unenforceable A. Voidable C. Void
41. Consent is manifested by the meeting of the offer and the acceptance upon the B. Unenforceable D. None of the above.
thing and the cause which are to constitute the contract. Which of the following 49. Reluctantly and against her good sense and judgment, Tess entered into a contract
constitute an offer? for the delivery of five (5) tables to Cora for the price of P15,000. The contract is
A. An offer made to an agent. A. Void C. Voidable
B. Business advertisement of things for sale. B. Valid D. Unenforceable
C. Advertisement for bidders. 50. Contract entered into in a state of drunkenness or during a hypnotic spell are
D. Answer not given. A. Void C. Voidable
42. When there is concurrence of the offer and the acceptance, there is – B. Valid D. Legal
A. Consent C. Revocation