FATHER SATURNINO URIOS UNIVERSITY

OBLIGATIONS AND CONTRACTS

ACADEMIC YEAR 2019-2020, 2ND SEMESTER
REVIEWER
1. It is an obligation which is subject to a space of time obligations?
which, exerting an influence on obligations as a
consequence of a juridical act, suspends their a. Creditor, unless it has been expressly
demandability or determines their extinguishment. granted to the debtor
a. Conditional obligation
b. Debtor, unless it has been expressly
b. Obligation with a period
c. Pure obligation granted to the creditor
d. Demandable obligation
c. Always with the debtor
2. The following statements concerning obligation with
a period is correct, except d. Always with the creditor
a. Obligations for whose fulfillment a day certain
has been fixed shall be demandable when that
day comes.
b. Obligation with a resolutory period takes effect 7. In alternative obligations, when shall the choice of
at once, but terminates upon arrival of the day prestation produce effect?
certain.
c. A day certain is understood to be that which a. From the moment it is exercised by the
must necessarily come, although it may not be debtor.
known when.
d. If the uncertainty consists in whether the day b. From the moment it is communicated to
will come or not, the obligation is with a the creditor.
period.
3. The following are the distinction between a condition c. From the moment the creditor consented to
and a period, except the choice.
a. A condition is an uncertain event while a period
is an event that must necessarily come. d. From the constitution of the obligation.
b. While a condition gives rise to an obligation or
extinguishes one already existing, a period has a. by the creditor.
no effect upon the existing of obligation, but
onlyits demandability or performance and thus, a 8. What is the effect of the loss or deterioration of the
period does not carry with it any retroactive thing intended as a substitute in a facultative
effect. obligation before the substitution?
c. A condition may refer to a past event and
unknown to parties while a period always refers a. The debtor becomes liable for damages
to the future.
b. The creditor may rescind the obligation with
d. A condition which depends exclusively on the
will of the debtors does not annul the damages
obligation but a period left to the debtor’s will
c. The debtor shall indemnify the creditor
merely empowers the court to fix such period.

a. Neither creditor or debtor d. The debtor shall not be liable

4. If there is stipulation as to whose benefit the period is

established, which of the following statements is
incorrect?
9. What is the effect of the loss of the principal object in
a. The creditor cannot demand payment before
a facultative obligation after the substitution?
the period stipulated.
a. The debtor is liable is the loss is due to
b. The debtor cannot make an effective tender
fortuitous event
and consignation of payment before the
period stipulated. b. The debtor is liable for damages if the loss is
due to his fault
c. The term is for the benefit of both debtor
and creditor. c. The obligation is extinguished because of
the loss of the object
d. The term is for the benefit of the debtor.
d. The obligation remains to exist
5. Suspensive period and resolutory period are also
known as 10. Which of the following statements is correct?
a. Both ex die
I. Joint obligation is one in which each debtor
b. Both in diem
is liable for the entire obligation and each
c. Ex die and diem, respecively creditor is entitled to demand the whole
obligation.
d. In diem and ex die, respectively
II. Solidary obligation is one in which each of
6. Who has the right of choice in case of alterative
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REVIEWER
the debtors is liable only for a proportionate without the consent of the others.
part of the debts and each creditor is entitled
only to a proportionate share of the credit. c. The debtor may pay any one of the solidary
creditors
a. I only
d. If any demand, judicial or extrajudicial, has
b. II only been made by any one of the solidary
creditors, payment should be made to him.
c. Both I and II
15. The following acts made by an of the solidary
d. Neither I nor II creditors or with any of the solidary debtors shall
extinguish the obligation, except
11. The concurrence of two or more creditors or of two
or more debtors in one and the same obligations a. Novation
implies that the obligation is
b. Compensation
a. Joint
c. Extension of time for payment
b. Solidary
d. Confusion
c. Either joint or solidary if silent
e. Remission
12. The following are the principal consequences of the
joint character of the obligation, except 16. The following statements pertaining to divisible and
indivisible obligations are correct, except
a. The demand by one creditor upon one
debtor produces the effect of default only a. Divisibility or indivisibility of the
with respect to the creditor who demanded obligation refers to the object or thing
and the debtor on whom the demand was and not to the performance of the
made, but not with respect to the others. obligation

b. The interruption of prescription by the b. A divisible obligation is one which is

judicial demand of one creditor upon a susceptible of partial performance; that is,
debtor, does not benefit the other creditors the debtor can legally perform the obligation
nor interrupt the prescription as to other by parts and the creditor cannot demand a
debtors. single performance of the entire obligation

c. The vices of each obligation arising from the c. An indivisible obligation, whatever may be
personal effect of a particular debtor or the nature of the thing which is the object
creditor do not affect the obligation or rights thereof, refers to one which can be validly
of the others. performed in parts.

d. The insolvency of a debtor increases the d. The thing or object may be divisible, yet the
responsibility of his co-debtors, nor does obligation may be indivisible
it authorize a creditor to demand
anything from his co-creditors 17. The following statements pertaining to joint
indivisible obligation are correct, except
a. .
a. To enforce a joint indivisible obligation,
13. It is a solidarity that exists among the creditors. there is necessity of collective fulfillment
and the action must be against all the
a. Mixed solidarity debtors.

b. Active solidarity b. In case of non-performance by any of the

debtors, the obligation is converted into a
c. Passive solidarity
liability for losses and damages, which is
d. Simple solidarity divisible.

14. The following statements pertaining to solidarity c. The debtors who may have been ready to
obligation are correct, except fulfill their promises shall not contribute to
the indemnity beyond the corresponding
a. Each one of the solidarity creditors may do portion of the price of the thing or of the
whatever may be useful to the others, but value of the service in which the obligation
not anything which may be prejudicial to the consists.
latter.
d. A joint indivisible obligation can be
b. A solidary creditor can assign his rights compelled by specific performance if

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REVIEWER
anyone of the debtors does not or cannot enforceable.
comply with this undertaking.
d. Obligations with a penal clause must be
18. What is the remedy of the creditor in case one of the construed liberally
debtors not comply with his undertaking in a joint
indivisible obligation? 22. The following are the rules to be observed in
applying obligations with a penal clause, except
a. Action for specific performance
a. Proof of actual damages suffered by the
b. Ask third person to fulfill the obligation at creditor is necessary in order that the
the expense of all the debtors penalty may be demanded.

c. Ask for indemnity for losses and damages b. The judge shall equitably reduce the penalty
when the principal obligation has been
d. Ask the other co-debtors to fulfill the entire partly or irregularly complied with by the
obligation debtor and even if there has been no
performance, the penalty may also be
19. The following are the rules concerning the divisibility
reduced by the courts if it is iniquitous or
or indivisibility of an obligation, except
unconscionable.
a. Obligation to give definite things and
c. The nullity of the penal clause does not
those which are not susceptible of partial
carries with it that of the principal obligation
performance shall be deemed divisible.
d. The nullity of the principal obligation carries
b. When the obligation has for its object and
with it that of the penal clause
execution of a certain number of days of
work, the accomplishment of work by 23. It is mode of extinguishing obligation which refers to
metrical units, or analogous things which by the fulfillment of the prestation due.
their nature are susceptible of partial
performance, it shall be divisible a. Novation

c. Even though the object or service may be b. Payment

physically divisible, an obligation is
c. Compensation
indivisible if so provided by law or intended
by the parties. d. Merger
d. In obligations to do, divisibility or 24. The following are the requisites of a valid payment
indivisibility shall be determined by the except
character if the prestation in each particular
case. a. The payment must be in accordance with the
obligation
20. It is an obligation which has an accessory
undertaking to assume greater liability in case of b. The person paying as well as the one
breach. receiving payment should have the requisite
capacity
a. Obligation with a condition
c. It should be made by the creditor to the
b. Obligation with a penal clause debtor
c. Obligation with a period d. It should be made at the right time and
place.
d. Obligation with a substitute
25. The following statement concerning payment are
21. The following statements concerning obligations with
correct, except
a penal clause are correct, except
a. Payment means only delivering of money
a. In obligations with a penal clause, the
but not performance, in any other manner,
penalty shall substitute the indemnity for
of an obligation
damages and the payment of interests in
case of noncompliance b. A debt shall not be understood to have been
paid unless the thing or service in which the
b. In case of breach of obligations with a penal
obligation consists has been completely
clause, damages and interests may be
delivered or rendered, as the case may be.
demanded in addition to the penalty if there
is stipulation to that effect. c. If the obligation has been substantially
performed in good faith, the obligor may
c. The penalty stipulated must not be contrary
recover as though there had been a strict
to law, morals, or public order to be
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REVIEWER
and complete fulfillment, less damages to retain the debt
suffered by the oblige.
d. When the payment to a third person
d. When the oblige accepts the performance, redounded to the benefit of the creditor.
knowing its incompleteness or irregularity,
and without expressing any protest or 30. The following statement concerning payment are
objection, the obligation is deemed fully correct, except
complied with.
a. Payment made to the creditor by the debtor
26. What is the right of a third person who pays for the after the latter has been judicially ordered to
debtor without the knowledge or against the will of retain the debt shall not be valid
the debtor?
b. The debtor of a thing cannot compel the
a. The third person may demand the whole creditor to receive a different one, although
amount paid from the debtor the latter may be of the same value as, or
more valuable than that which is due.
b. The third person cannot recover any amount
c. In obligations to do or not to do, an act or
c. The third person may compel the creditor to forbearance cannot be substituted by another
subrogate him in his rights, such as those act or forbearance against the obligee’s will.
arising from a mortgage, guaranty or penalty
d. When the obligation consists in delivery
d. The third person may recover only of an indeterminate or generic thing,
insofar as the payment has been beneficial whose quality and circumstances have not
to the debtor been stated, the creditor can demand a
thing of superior quality but the debtor
27. The following are the persons to whom payment shall can deliver a thing of superior quality.
be made, except
31. It refers to a special form of payment whereby a
a. Person in whose favor the obligation has property is alienated to the creditor in satisfaction of
been constituted a debt in money.

b. Any third person a. Application payment

c. Successor of interest of creditor b. Payment by cession

d. Any person authorized by the creditor to c. Dation in payment

receive payment
d. Tender of payment and consignation
28. Payment made to a third person shall also be valid
insofar as it has redounded to the benefit of the 32. Dation in payment as a mode of extinguishing
creditor. Such benefit to the creditor need not be obligation shall be governed by the provision of
proved in the following cases, except
a. Law of Barter
a. If after the payment, the third person
acquires the creditor’s rights b. Law of Obligation

b. If the third person is not authorized by c. Law of Sales

the creditor.
d. Law of Credit Transactions
c. If the creditor ratifies the payment to the
33. Who shall shoulder the extra-judicial expenses
third person
requirement by the payment?
d. If by the creditor’s conduct, the debtor has
a. Debtor
led to believe that the third person has
authority to receive payment. b. Creditor
29. The following are the instances wherein payment c. Government
made to a third person is valid, except
d. None of the above
a. When in good faith, the debtor pays to one
in possession of the credit 34. The following statement concerning partial payment
are correct, except
b. When, without notice of the assignment of
the credit, the debtor pays to the original a. The creditor cannot be compelled partially
creditor. to receive the prestations in which the
obligation consists except when there is
c. When the debtor was judicially ordered stipulation to the contrary
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REVIEWER
b. The debtor may be required by the c. Payment by cession
creditor to make partial payments
d. Tender of payment and consignation
c. When the debt is in part liquidated and in
part unliquidated, the creditor may demand 40. It refers to the designation of the debt which is being
the payment of the former without waiting paid by a debtor who has several obligations of the
for the liquidation of the latter same kind in favor of the creditor to whom payment
is made.
d. When the debt is in part liquidated and in
part unliquidated, the debtor may affect the a. Dation in payment
payment of the former without waiting for
b. Application of payments
the liquidation of the latter
c. Payment by cession
35. It refers to such currency which in a given
jurisdiction can be used for the payment of debts, d. Tender of payment and consignation
public or private, and which cannot be refused by the
creditor. 41. Who has the right of application of payments?

a. Legal tender a. Debtor

b. Foreign currency b. Creditor

c. Local currency c. Both debtor and creditor

d. International currency d. Neither debtor nor creditor

36. Where shall payment of an obligation be made? 42. Which of the following statements is correct?

a. Wherever the thing might be at the moment I. Unless the parties so stipulate, or when the
the obligation was constituted application of payment is made by the party
for whose benefit the term has been
b. Place designated in the obligation constituted, application shall not be made as
to debts which are not yet due.
c. Domicile of the debtor
II. If the debtor accepts from the creditor a
d. Domicile of the creditor
receipt in which an application of the
37. Where shall payment of an obligation to deliver a payment is made, the former cannot
determinate thing be made if there is no express complain of the same, unless there is a cause
stipulation as to the place of payment? for invalidating the contract.

a. Wherever the thing might be at the a. Both I and II

moment the obligation was constituted
b. Neither I nor II
b. Place designated by third party
c. I only
c. Domicile of the debtor
d. II only
d. Domicile of the creditor
43. The following are limitations to the preferential right
38. Where shall payment of an obligation to deliver an of the debtor to choose the debt to which his payment
indeterminate thing be made if there is no express is to be made, except
stipulation as to the place of payment?
a. If the debtor owes two debts, one for P50
a. Wherever the thing might be at the moment and another for P200, and he makes a
the obligation was constituted payment of P50, he cannot choose to apply
it to the P200 debt because the creditor
b. Place designated by third party cannot be compelled to accept partial
payment
c. Domicile of the debtor
b. If there is only one obligation bearing
d. Domicile of the creditor stipulated interest, the debtor cannot
apply the payment to the interest before
39. The following are the special forms of payment,
the capital
except
c. The debtor cannot apply the payment to a
a. Dation in payment
debt that is not yet liquidated
b. Application of payments
d. He cannot choose a debt with a period for
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REVIEWER
the benefit of the creditor, when the period all the property of the debtor
has not yet arrived.
d. While in dation in payment, the transfer is
e. When there is an agreement as to the debts only in favor of one creditor to satisfy a
which are to be paid first, the debtor cannot debt, in payment by cession, there are
vary the agreement. various creditors.

44. The following are the rules for application of 47. Which of the following statements is incorrect?
payments, except
I. Tender of payment is the manifestation
a. If the debt produces interest, payment of the made by the debtor to the creditor of his
principal shall not be deemed to have been desire to comply with his obligation with the
made until the interests have been covered offer of immediate performance.

b. When the payment cannot be applied in II. Consignation is the deposit of the object of
accordance with the preceding rules, or if the obligation in a competent court in
application cannot be inferred from other accordance with rules prescribed by law.
circumstances, the debt which is most
onerous to the debtor, among those due, a. I only
shall be deemed to have been satisfied
b. II only
c. If the debts due are of the same nature and
c. Neither I nor II
burden, the payment shall be applied to all
of them proportionately d. Both I and II
d. If at the time of payment the debtor does 48. What is the remedy of the debtor if the creditor to
not exercise his right to apply it to any of whom tender of payment has been made refuses
his debts, the application made by the without just cause to accept it?
creditor shall be followed even if the
debtor does not consent to such a. Consign the thing or sum due
application
b. Payment by cession
45. It refers to a special type of payment which involves
the voluntary abandonment of the universality of the c. Dation in payment
property of the debtor for the benefit of his creditors,
d. Application of payments
in order that such property may be applied to the
payment of the credits. 49. If the creditor to whom tender of payment has been
made refuses without just cause to accept it, the
a. Dation in payment
debtor shall be released from responsibility by the
b. Application of payments consignation of the thing or sum due. Consignation
without tender of payment shall release the debtor
c. Payment by cession from responsibility in the following instances, except

d. Tender of payment and consignation a. When the creditor is absent or unknown, or

does not appear at the place of payment
46. The following are the distinction between dation in
payment and payment by cession, except b. When he is capacitated to receive the
payment at the time it is due
a. Whereas payment by cession transfers the
ownership over the thing alienated to the c. When, without just cause, he refuses to give
creditor, payment dation in payment, only a receipt
the possession and administration (not
ownership) are transferred to the d. When two or more persons claim the same
creditors, with an authorization to right to collect
convert the properly into cash with which
e. When the title of the obligation has been lost
the debts shall be paid
50. In order that consignation may be effective the debtor
b. While dation in payment may totally
must comply first with the following requisites,
extinguish the obligation and release the
except
debtor, the assignment only extinguishes the
credits to the extent of the amount realized a. Their debt must be due.
from the properties assigned, unless
otherwise agreed upon. b. The consignation was made because of some
legal cause provided by law
c. While dation in payment involves only some
specific thing, payment by cession involves c. Previous notice of the consignation has been
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given to the persons interested in the which he may have over the thing
performance of the obligation
b. The co-debtors shall be released
d. The amount or thing was not placed at
the disposal of the court c. The guarantors and sureties shall be released

e. After the consignation, the persons d. The obligation shall be extinguished

interested were notified thereof.
55. Which of the following statements is correct?
51. Who shall shoulder the expenses of a valid
I. An obligation which consists in the delivery
consignation?
of a determinate thing shall be extinguished
a. Debtor if it should be lost or destroyed due to
fortuitous event
b. Creditor
II. In an obligation to deliver a genering thing,
c. Government the loss or destruction of anything of the
same king extinguishes the obligation.
d. None of the above
a. I only
52. Which of the following statements is correct?
b. II only
I. Once the consignation has been duly made,
the debtor may ask the judge to order the c. Both I and II
cancellation of the obligation
d. Neither I nor II
II. Before the creditor has accepted the
consignation, or before a judicial declaration 56. The following statements concerning the loss of the
that the consignation has been properly object of the obligation, except
made, the debtor may withdraw the thing or
a. The courts shall determine whether, under
the sum deposited, allowing the obligation
the circumstances, the partial loss of the
to remain in force
object of the obligation is so important as to
a. I only extinguish the obligation

b. II only b. The debtor in obligation to do shall also

be released when the prestation becomes
c. Both I and II legally or physically impossible with the
fault of the obligor
d. Neither I nor II
c. When the service has become so difficult as
53. The following are effects once the consignation has to be manifestly beyond the contemplation
been accepted by the creditor or the court has of the parties, the obligation may also be
declared that it has been validly made, except released therefrom, in whole or in part

a. The debtor is released in the same manner as d. When the debt of a thing certain and
if he had performed the obligation at the determinate proceeds from a criminal
time of the consignation, because this offense, the debtor shall not be exempted
produces the same effect as a valid payment from the payment of its price, whatever may
be the cause for the loss, unless the thing
b. The accrual of interest on the obligation is
having been offered by him to the person
suspended from the moment of consignation
who should receive it, the latter refused
c. The deterioration of loss of the thing or without justification to accept it
amount consigned occurring without fault of
57. What is the presumption whenever the thing is lost in
the debtor must be borne by the creditor,
the possession of the debtor in the absence of
because the risks of the thing are transferred
earthquake, flood, storm or other natural calamity?
to the creditor from the moment of deposit
a. The loss was due to force majeure.
d. Any increment or increase in value of the
thing after the consignation inures to the b. The loss was due to fortuitous event
benefit of the debtor.
c. The loss was due to the debtor’s fault
54. The following are the effects if, after the consignation
has been made, the creditor should authorize the d. The loss was due to the creditor’s fault
debtor to withdraw the same, except
58. It is a mode if extinguishing obligation which is an
a. The creditor shall lose every preference act of liberality, by virtue of which, without receiving
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any equivalent, the creditor renounces the b. The renunciation of the principal debt shall
enforcement of the obligation, which is extinguished extinguish the accessory obligations
in its entirely or in that part or aspect of the same.
c. The renunciation of the accessory
a. Compensation obligation shall extinguish the principal
debt
b. Confusion
d. It is presumed that the accessory obligation
c. Remission of pledge has been remitted when the thing
is pledged, after its delivery to the creditor,
d. Novation
is found in the possession of the debtor, or
59. What is the nature of condonation or remission? of a third person who owns the thing

a. It is generally gratuitous and requires the 63. It refers to the meeting in one person of the qualities
acceptance by the obligor of creditor and debtor with respect to the same
obligation.
b. It is essentially gratuitous and requires
the acceptance by the obligor a. Compensation

c. It is generally onerous and requires the b. Condonation

acceptance by the obligor
c. Confusion
d. It is essential onerous and requires the
d. Novation
acceptance by the obligor
64. The following are the requisites of merger or
60. The following are the requisites of remission or
confusion, except
condonation, except
a. It must be gratuitous and requires
a. The debt must be existing and demandable
acceptance by the obligor
at the time the remission made
b. It must take place between the creditor and
b. The renunciation of the debt must be
the principal debtor
gratuitous
c. The very same obligation must be involved,
c. The debtor must accept the remission
for if the debtor acquires rights from the
d. The remission or condonation must be creditor, but not the particular obligation in
expressly made and not impliedly question, there will be no merger

61. What is the implication of the delivery of a private d. The confusion or merger must be total or as
document evidencing a credit, made voluntarily by regards the entire obligation
the creditor to the debtor?
65. The following statement concerning merger or
a. It implies that the voluntary return of the confusion are correct, except
private document is presumed to be by
a. The effect of merger is to extinguish the
reason of payment of the debt
obligation
b. It implies that the voluntary return of the
b. Merger which takes place in the person of
private document is presumed to be by
the principal debtor or creditor benefits the
reason of payment of the debt
guarantor
c. It implies that the voluntary return of the
c. Merger which takes place in the person of
private document is presumed to be by
the guarantor extinguishes the principal
reason of novation of the debt
obligation
d. It implies that the voluntary return of the
d. Confusion does not extinguish a joint
private document is presumed to be by
obligation except as regards the share
reason of confusion of the debt
corresponding to the creditor or debtor in
62. The following statement concerning condonation or whom the two characters concur
remission are correct, except
66. It is a mode of extinguishing to the concurrent
a. Whenever the private document in which the amount, the obligations of those persons who in their
debt appears is found in the possession of own right are reciprocally debtors and creditors of
the debtor, it shall be presumed that the each other
creditor delivered it voluntarily, unless the
a. Novation
contrary is proved
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b. Compensation b. Novation

c. Merger c. Condonation

d. Remission d. Merger

67. Which of the following statements pertain to 71. Novation of obligations may take place by the
facultative compensation? following, except

a. It is a compensation which takes place by a. Changing their object or principal conditions

operation of law because the requisites are
present b. Substituting the person of the debtor

b. It is a compensation which can be claimed c. Subrogating a third person in the rights of

by one of the parties who, however, has the creditor
the right to object to it, such as when one
d. Changing their term or period
of the obligations has a period for the
period for the benefit of one party alone 72. Which of the following statements concerning the
and who renounces that period so as type of novation is incorrect?
make the obligations due
a. Subjective or personal novation is the
c. It is a compensation wherein the parties modification of the obligation by the change
agree to compensate their mutual obligations of the subject; it is passive if there is
even if some requisite is lacking substitution of the debtor, and it is active
when a third person is subrogated in the
d. It is a compensation decreed by the court in
rights of the creditor
a case where there is a counterclaim
b. Objective or real novation is the change of
68. Which of the following debts can be the subject of
the obligation by substituting the object with
compensation?
another or changing the principal conditions
a. Valid debts only
c. There is total novation when there is only
b. Valid, rescissible, voidable and a modification or change in some
unenforceable debts only principal conditions of the obligations

c. Valid, rescissible and voidable debts only d. There is implied novation when there is such
an incompatibility between the old and the
d. Valid an rescissible debts only new obligations that they cannot stand
together
69. The following are the instances wherein the debtor
may still set up compensation, except 73. The following are the requisites of novation, except

a. When the creditor communicated the a. There must be a previous void obligation
assignment if his right to the third persons to
the debtor and the latter did not consent b. There must be agreement of all parties to the
thereto new contract

b. When the debtor has consented to the c. There must be extinguishment of the old
assignment of his rights made by a creditor contract
in favor of a third person and the assignor
d. The new obligation must be valid
reserved his right to the compensation at the
time he gave his consent 74. Which of the following statements concerning
novation is incorrect?
c. When the assignment is made without
knowledge of the debtor a. In order that an obligation may be
extinguished by another which substitutes
d. When the debtor has consented to the
the same, it is imperative that it be so
assignment of rights made by a creditor
declared in unequivocal terms
without reservation as to his right to
compensation b. Novation is never presumed
70. Novation is the extinguishment of an obligation by c. There is implied novation if the old and new
the substitution or change of the obligation by a obligations are on every point incompatible
subsequent one which extinguishes or modifies the with each other
first.
d. Novation must only be expressed and not
a. Compensation
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KEZIA THERESSE D. MORDENO, CPA
 FATHER SATURNINO URIOS UNIVERSITY
OBLIGATIONS AND CONTRACTS
ACADEMIC YEAR 2019-2020, 2ND SEMESTER
REVIEWER
implied 78. Which of the following statements concerning
novation are correct, except
75. Novation consists in substituting a new debtor in the
place of the original one, one may be made even a. When the principal obligation is
without the knowledge or against the will of the extinguished in consequence of a novation,
latter, but not without the consent of the creditor. accessory obligations may subsist only
Which of the following statements concerning the insofar as they may benefit third person who
two forms of this novation is correct? did not give their consent

I. In Expromission, the initiative for the b. If the new obligation is void, the original
change does not emanate from the debtor obligation was extinguished, unless the
and may be made even without his parties intended that the former should
knowledge, since it consists in a third person subsist in any event
assuming the obligation and it logically
requires the consent of third person and the c. The novation is void if the originalobligation
creditor was void, except when annulment may be
claimed only by the debtor, or when
II. In delegaction, the debtor (delegante) offers ratification validates acts which are voidable
and the creditor (delegatorio) accepts a third
person (delegado) who consents to the d. If the original obligation was subject to a
substitution, so that the consent of these suspensive or resolutory condition, the new
three is necessary obligation shall be under the same condition,
unless it is otherwise stipulated
a. I only
79. Which of the following statements concerning
b. II only subrogation is correct?

c. Both I and II a. Subrogation of a third person in the rights of

the creditor is either illegal or conventional
d. Neither I nor II
b. Legal subrogation is not presumed, except in
76. In what type of novation consisting of substitution of cases expressly mentioned in this Code
a new debtor will the insolvency of new debtor or
non-fulfillment of the obligation shall not give rise to c. Conventional subrogation must be clearly
any liability on the part of the original debtor? established in order that it may take effect

a. In expromission because the debtor did d. Conventional subrogation of a third

not have the initiative in making the person requires the consent of the original
change, which might have been madeeven parties but not of third person
without his knowledge
80. It refers to the transfer of all the rights of the creditor
b. In delegaction because the creditor consents to a third person, who substitute him in all his rights
to the substitution
a. Novation
c. In either expromission or delegacion
b. Compensation
d. Neither expromission nor delagacion
c. Confusion
77. In delegacion, will the insolvency of the new debtor,
who has been proposed by the original debtor and d. Subrogation
accepted by the creditor, revive the action of the latter
against the original obligor?

a. No, under any circumstances because the

obligation is already extinguished

b. Yes when said insolvency was already

existing and of public knowledge, or
known to the debtor, when he delegated
his debt

c. Yes even of the creditor has knowledge that

the new debtor was insolvent at the time of
delegation

d. No because the debtor has not given his

consent to the delegation
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KEZIA THERESSE D. MORDENO, CPA