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Fillintheblanks&TrueorFalse

1.

Consignationpresupposesnotonlythattheobligorisable,readyandwillingbutmoresointheactofperforming
hisobligation.
a.FALSE.Thisistenderofpayment.

2.

Aproofthatanactcouldhavebeendoneisnoproofthatitwasactuallydonesupportstheconceptknownas
___________.
a.Tenderofpayment

3.

Acertifiedpersonalcheckisnotalegaltendernorthecurrencystipulatedandthereforecannotconstitutevalid
tenderofpayment.
a.TRUE.Thoughacheckisnotlegaltender,andacreditormayvalidlyrefusetoacceptitiftenderedas
payment,onewhoinfaceacceptedafullyfundedcheckafterthedebtorsmanifestationthatithadbeengivento
settleanobligationisestoppedfromlaterondenouncingtheefficacyofsuchtenderofpayment.(FarEastBank
v.DiazRealty,August23,2001)

4.

Itisaconceptthatderivesfromtheprinciplethatsincemutualagreementcancreateacontract,mutual
disagreementcancauseitsextinguishment.
a.TRUE

5.

Whereanapplicationforaloanofmoneywasapproved,therearisesaperfectedcontractevenbeforethedelivery
oftheobjectofthecontract.
a.TRUE

6.

b.Mutualdissent

b.Noreasonyet.

Iftheobligationhasbeensubstantiallyperformed,theobligorshallrecoverasthoughtherehadbeenastrictand
completefulfilment.
a.FALSE.Obligorcanrecoverbutlessdamagessufferedbytheobligee.Art.1234

7.

Whentheobligeeacceptstheperformance,knowingitsincompletenessorirregularity,theobligationisdeemed
fullycompliedwith.
a.FALSE.Acceptancemustbewithoutexpressionofprotestorobjection.Art.1235.

8.

Paymentbyajudgmentdebtortothewrongpartydoesnotextinguishjudgmentdebt.
a.FALSE.Itmayextinguishjudgmentincertaincircumstances;
i.Art.1241

ii.Art.1242

iii.Paymentwasdeliveredtotheoriginalcreditorotherthanthenewcreditor
9.

ObligationsrequiringpaymentinforeigncurrencymustbedischargedinPhilippineCurrencyasprovidedinR.A.
8181.
a.FALSE.RA529

10.

AnagreementtopayapromissorynoteindollarswhilenullandvoidunderR.A.529doesnotdefeatacreditors
claim.

a.TRUE.Whileanagreementtopayinforeigncurrencyisdeclarednullandvoidandofnoeffect,the
lawdoesnotdefeatacreditorsclaimforpaymentbecausewhatthelawspecificallyprohibitsisthepaymentin
currencyotherthanlegaltender.(Poncev.CA)
11.

A_____________impliesthatthecheckisdrawnuponsufficientfundsinthehandsofthedrawee,thattheyhave
beensetapartforitssatisfaction,andthattheyshallbesoappliedwheneverthecheckispresentedforpayment.
a.Certification

12.

Thedeliveryofapromissorynotepayabletoorder,orbillsofexchangeorothermercantiledocumentsproduces
theeffectsofpayment.
a.FALSE.Itonlyproducespaymentwhentheyhavebeencashedorwhenthroughthefaultofthe
creditor,theyhavebeenimpaired.

13.Thecreditorcannotbecompelledpartiallytoreceivetheprestationsinwhichtheobligationconsists.Neithermaythe
debtorberequiredtomakepartialpayments.
a.FALSE.Asageneralrule,thecreditormaynotbecompelledtoacceptpartialfulfillment.The
followingareexceptionstothisrule:(1)substantialcomplianceingoodfaith,asprovidedunderArt.1234;(2)
waiver,asprovidedunderArt.1235;or(3)applicationofpaymentsifthedebtsareequallyonerous,asprovided
inArt.1254(2)
14.Therulethatincaseanextraordinaryinlationordeflationofthecurrencystipulatedshouldsupervene,thevalueofthe
currencyatthetimeoftheestablishmentoftheobligationshallbethebasisofpaymentisinapplicabletoobligations
arisingfromtorts.
a.TRUE.Bythemereuseofthewordsextraordinaryinflationordeflationofthecurrencystipulated,it
canbeseenthatthesameenvisagescontractualobligationswhereaspecificcurrencyisselectedbythepartiesas
themediumofpayment,Thus,thisisinapplicabletoobligationsarisingfromtortsandnotfromcontracts.
(Velascov.MERALCO)
15.Undertheprincipleofdationinpayment,themeredeliveryofthemortgagedmotorvehiclebythemortgagorresults
inthetransferofownershiptothemortgagesevenwithouttheconsentofthelatter.
a.FALSE.Intheabsenceofclearconsentofoneoftheparties,therecanbenotransferofownershipin
dationinpayment.(Filinvestv.Phl.Acetylene)
16.Therecanbedationpaymentwhenthereisnoobligationtobeextinguished.
a.FALSE.Dationinpaymentisamodeofextinguishingobligations.Itisthetransmissionofownership
ofathingbythedebtortothecreditorasanacceptedequivalentoftheperformanceofanobligation(Manresa)
17.Tenderofpaymentmaybeextrajudicial.
a.FALSE.Itisalwaysextrajudicialincharacter.
18.Consignationisnecessarilyjudicial.
a.TRUE.Article1258DeposittojudicialauthoritiesItisjudicialforitrequiresthefilingofa
complaintincourt.(Pineda)
19.Consignationoftheamountrequiredisnotnecessarytopreservetherighttoredeem.

a.TRUE.Therighttoredeemisaright,notanobligation.Thus,consignationoftheamountrequiredis
notnecessarytopreservetherighttoredeem.(Immaculatev.Navarro)
20.Difficultyofserviceauthorizesreleaseoftheobligorbutdoesnotauthorizecourtstomodifyorrevisethecontract
betweentheparties.
a.TRUE.Difficultyofserviceauthorizesthereleaseoftheobligorbutdoesnotallowthecourtsto
remake,modifyorrevisethecontractstipulatedwiththeforceoflaw,soastosubstituteitsowntermsforthose
covenantedbythepartiesthemselves.(Occenav.Jabson)
_________________________________________________________________________________________________
1.Itispresumedthattheaccessoryobligationofpledgehasbeenremittedwhenthethingpledged,afteritsdeliverytothe
creditor,isfoundinthepossessionofthedebtor,orofathirdpersonwhoownsthething.
a.TRUE.Article1274.
2.Thedeliverytoandacceptancebythecreditorofacashierscheckproducestheeffectofpaymentofthedebtors
obligation.
a.FALSE.Itonlyproducespaymentwhentheyhavebeencashedorwhenthroughthefaultofthe
creditor,theyhavebeenimpaired.
3.Wheneverthethingislostinthepossessionofthedebtor,itshallbepresumedthatthelosswasduetohisfault.
a.FALSE.Article1265Unlessthereisprooftothecontraryandwithoutprejudicetotheprovisionsof
Art.1165.Thispresumptiondoesnotapplyincaseofearthquake,flood,storm,orothernaturalcalamity.
4.Legalsubrogationrequirestheconsentoftheoriginalpartiesandofthirdpersons.
a.FALSE.Article1301Conventionalsubrogationofathirdpersonrequirestheconsentoftheoriginal
partiesandofthethirdperson,legalsubrogationdoesnot.
5.Whenthedebtofathingcertainanddeterminateproceedsfromacriminaloffense,thedebtorshallnotbeexemptfrom
thepaymentofitsprice,whatevermaybethecauseoftheloss.
a.FALSE.Article1268Unlessthethinghavingbeenofferedbyhimtothepersonwhoshouldreceive
it,thelatterrefusedwithoutjustificationtoacceptit.
6.Whentheprincipalobligationisextinguishedinconsequenceofanovation,accessoryobligationsubsists.
a.FALSE.Article1296Onlyinsofarastheymaybenefitthirdpersonswhodidnotgivetheir
consent.
7.Whenevertheprivatedocumentinwhichthedebtappearsisfoundinthepossessionofthedebtor,itshallbe
conclusivelypresumedthatthecreditordelivereditvoluntarily.
a.FALSE.Disputablepresumption.Article1272Unlessthecontraryisproved.
8.Paymentshallbemadetooneofthepartiestotheconstitutionoftheobligationtoextinguishtheobligation.
a.FALSE.Article1240Paymentshallbemadetothepersoninwhosefavortheobligationhasbeen
constituted,orhissuccessorininterest,oranypersonauthorizedtoreceiveit.

9.Paymentmadebyathirdpersonwhodoesnotintendtobereimbursedbythedebtorisdeemedadonation,which
requiresthedebtorsconsent.Ifthedebtorsconsentisnotgiventheobligationisnotextinguished.
a.FALSE.Article1238Thepaymentisinanycasevalidastothecreditorwhohasacceptedit.
10.Dationinpaymentisgovernedbythelawofsales.
a.FALSE.Article1245Dationinpayment,wherebypropertyalienatedtothecreditorinsatisfaction
of adebtinmoney,shallbegovernedbythelawofsales.(novationifnotinmoney)
11.Legalcompensationshallnotprosperwhenoneofthedebtsarisesfromadepositum.
a.TRUE.Article1287.
12.Ifapersonshouldhaveagainsthimseveraldebtswhicharesusceptibleofcompenstation,therulesontheapplication
ofpaymentsshallapplytotheorderofthecompensation.
a.TRUE.Article1289.Exactprovision.
13.Inpartialcompensation,noobligationisextinguished.
a.FALSE.Onlythebalanceremainsobligatory.
14.Whenoneotbothdebtsarerescissibleorvoidable,theymaybecompensatedagainsteachotherbeforetheyare
judiciallyrescindedoravoided.
a.TRUE.Article1284.Exactprovision.
15.Incaseanextraordinaryinflationordeflationofthecurrencystipulatedshouldsupervene,thevalueofthecurrencyat
thetimeofpaymentshallbethebasisofpayment.
a.FALSE.Article1250.Thevalueofthecurrencyatthetimeoftheestablshmentoftheobligation
shallbethebasisofpayment,unlessthereisanagreementtothecontrary.
16.Ifthedebtproducesinterest,paymentoftheprincipalshallnotbedeemedtohavebeenmadeuntiltheinterestshave
beencovered.
a.TRUE.Article1253.Exactprovision
17.Anobligationwhichconsistsindeliveryofadeterminatethingshallbeextinguishedifitshouldbelostordestroyed
duetoafortuitousevent.
a.FALSE.Article1262Anobligationwhichconsistsnthedeliveryofadeterminatethingshallbe
extinguishedifitshouldbelostordestroyedwithoutthefaultofthedebtor,andbeforehehasincurreddelay.
18.Compensationshalltakeplaceinreciprocalobligations.
a.FALSE.Article1278Compenstationshalltakelacewhentwopersons,intheirownright,are
creditorsanddebtorsofeachother.Thepartiesarereciprocallydebtorsandcreditorsofeachother.
19.Theguarantormaynotsetupcompensationasregardswhatthecreditormayowetheprincipaldebtor.
a.FALSE.Article1280.Maysetup
20.Theobligationisextinguishedfromthetimethecharactersofcreditorandthedebtorarecompensatedinthesame
person.

a.FALSE.Article1275Theobligationisextinguishedfromthetimethecharactersofcreditorand
debtoraremergedinthesameperson.

Obligations&Contracts
PartOne
MultipleChoice.Choosethebestanswer.Writetheletteronly.Considerthestatementtrueonly
whenitisabsolutelytrue.
a.Botharetrue
b.Botharefalse
c.No.1istrue,No.2isfalse
d.No.1isfalse,No.2istrue

1.Statements:
Itispresumedthattheaccessoryobligationofpledgehasbeenremittedwhenthethingpledged,
afteritsdeliverytothecreditor,isfoundinthepossessionofthedebtor,orofathirdpersonwho
ownsthething.
Thedeliverytoandacceptancebythecreditorofacashierscheckproducestheeffectof
paymentofthedebtorsobligation.
2.Statements:
Wheneverthethingislostinthepossessionofthedebtor,itshallbepresumedthatthelosswas
duetohisfault.
Legalsubrogationrequirestheconsentoftheoriginalpartiesandofthethirdperson.
3.Statements:
Whenthedebtofathingcertainanddeterminateproceedsfromacriminaloffense,thedebtor
shallnotbeexemptedfromthepaymentofitsprice,whatevermaybethecausefortheloss.
Whentheprincipalobligationisextinguishedinconsequenceofanovation,accessory
obligationssubsist.
4.Statements:
Whenevertheprivatedocumentinwhichthedebtappearsisfoundinthepossessionofthe
debtor,itshallbeconclusivelypresumedthatthecreditordelivereditvoluntarily.

Paymentshallbemadetooneofthepartiestotheconstitutionoftheobligationtoextinguishthe
obligation.
5.Statements:
Paymentmadebyathirdpersonwhodoesnotintendtobereimbursedbythedebtorisdeemed
tobeadonation,whichrequiresthedebtorsconsent.Ifthedebtorsconsentisnotgiventhe
obligationisnotextinguished.
Dationinpaymentisgovernedbythelawofsales.
6.Statements:
Legalcompensationshallnotbeproperwhenoneofthedebtsarisesfromadepositum.
Ifapersonshouldhaveagainsthimseveraldebtswhicharesusceptibleofcompensation,the
rulesontheapplicationofpaymentsshallapplytotheorderofthecompensation.
7.Statements:
Inpartialcompensation,noobligationisextinguished.
Whenoneorbothdebtsarerescissibleorvoidable,theymaybecompensatedagainsteachother
beforetheyarejudiciallyrescindedoravoided.
8.Statements:
Incaseofextraordinaryinflationordeflationofthecurrencystipulatedshouldsupervene,the
valueofthecurrencyatthetimeofpaymentshallbethebasisofpayment.
Ifthedebtproducesinterest,paymentoftheprincipalshallnotbedeemedtohavebenmade
untiltheinterestshavebeencovered.
9.Statements:
Anobligationwhichconsistsinthedeliveryofadeterminatethingshallbeextinguishedifit
shouldbelostordestroyedduetoafortuitousevent.
Compensationshalltakeplaceinreciprocalobligations.
10.Statements:
Theguarantormaynotsetupcompensationasregardswhatthecreditormayowetheprincipal
debtor.
Theobligationisextinguishedfromthetimethecharactersofcreditoranddebtorare
compensatedinthesameperson.

MCQs
1.Inthreeofthefollowingcases,compenstationshallnotbeproper.Whatistheexception?

a.Commodatum
b.Gratuitoussupport
c.Civilliabilityarisingoutofcriminaloffenses
d.Bankdeposit
2.Whentwo(2)personsintheirownrightaredebtorsandcreditorsofeachother,thereis:
a.Confusion
b.Compensation
c.Consignation
d.Novation
3.AowesXP50,000payableonorbeforeJune30,1999.Swhoisnotapartytothecontractandwithoutconsentand
againstthewillofApaidXtheP50,000onApril1,1999whentheprevailingrateofinterestwas12%perannum.
a.ScanaskreimbusementfromAintheamountofP50,000plus12%interestfromApril1toJune30,1999.
b.ScanaskreimbursementfromAintheamountofP50,000.
c.ScannotaskfromAbecausethepaymentbySiswithoutconsentandagainstthewillofA.
d.ScanaskrefundfromXbecausethepaymentbySwasagainstthewillofA.
4.Whenanobligationisextinguishedbecauseofthepassageoftime,thisis:
a.Fulfillmentofresolutorycondition
b.Arrivalofaresolutorycondition
c.Novation
d.Rescission
5.Thefollowingshallproducetheeffectofpaymentofdebts:
a.Deliveryofcheck
b.TenderofCentralBanknotes
c.Deliveryofpromissorynote
d.Dacionenpago
6.Oneisnotarequisiteneededinorderthatobligationshallbeextinguishedbylossordestructionofthethingdue:
a.Whenthethingislostwithoutthefaultofthedebtor
b.Whenthethinglostisgeneric
c.Whenthethinglostbeforethedebtorhasincurreddelay

d.Whenthethinglostisspecific
7.Whichofthefollowingisnotanelementoflegalcompensation?
a.Debtstobecompensatedaredueanddemandable.
b.Thereiscontroversyoradverseclaimoveranydebtstobecompensated.
c.Therearetwoormoredebtsofthesamekind.
d.Therearetwopersonswhoarecreditorsanddebtorsofeachother.
8.Whichoftheexamplesgivenbelowcanlegalcompensationtakeplace?
a.AowesBP1,000dueonJune30,1993,BowesAP1,000dueonJune30,1993butChasfiledanadverse
againstA.
b.AowesBP1,000payableOctober31,1993,BowesAP1,000dueonOctober31,1993
c.AowesBP1,000withCashisguarantor.BowesCP1,000
d.AowesBP1,000payableMay31,1993,BtodelivertoA2piculsofsugarworthP1,000onMay31,1993
9.AowessolidarilycreditorsXYZP10,000.Thereisremissionofdebtswhen:
a.XborrowsP10,000fromA.
b.XwaivespartiallytheobligationofP10,000toA.
c.ZmakesawillgivingtheP10,000debttoAaslegacy.
d.YtellsAthatinsteadofpayingP10,000,AshalljustdeliveraringtoY.
10.Whichofthefollowingisnotaspecialmodeofpayment?
a.Dationenpago
b.Paymentbycession
c.Tenderofpaymentandconsignation
d.Prescription

OBLIGATIONS
F

1.Consentisanessentialrequisiteofobligation.

2.Athingisindeterminateifitisnotphysicallysegregatedfromallothersofthesameclass.

3.Inobligationswithaterm,theobligationarisesuponthearrivaloftheperiod.

claim

F
4.Inobligationswithapenalclause,thedebtormayexempthimselffromtheperformanceoftheobligationby
payingthepenalty.
F

5.Theinsolvencyofonedebtorwillincreasetheliabilityofhiscodebtors.

6.Theindivisibilityofanobligationnecessarilygivesrisetosolidarity.

7.Wheneveraperiodisdesignatedinanobligation,itisforthebenefitofboththecreditoranddebtor.

F
8.Whenthefulfilmentoftheobligationisdependentuponthesolewillofthedebtor,theconditionalobligation
shallbevoid.
F
9.Infacultativeobligation,therightofchoicebelongstothedebtorunlessithasbeenexpresslygrantedtothe
creditor.

True or False
F

1. Acts and contracts which have for their objects the creation transmission, modification
or extinguishment of real rights over immovable property must be in a public instrument
to be valid and binding. (not for validity but for greater efficacy)

2. In consignation, before acceptance by the creditor, the withdrawal of the sum or thing
consigned by the debtor will be a matter of right. (if made after judicial consignation)

3. Contract of lease for 2 years is unenforceable if not in writing. (only if lease of real
property)

4. Tender of payment is required only when the debtor refuses, without just causes, to
accept payment.

5. An action for rescission of a contract entered into to defraud a creditor will prosper 4
years from actual discovery of fraud. (from time of registration)

6. Undue influence shall annul the obligation, although it may have been employed by a
third person who did not take part in the contract.

7. In obligation to deliver a determinate thing, the loss of the thing while in the
possession of the debtor shall be presumed to be due to his fault. (loss on occasion of
calamity)

8. Rescission shall be only to the extent necessary to cover the damage caused by a
contract in fraud of a creditor.

9. A conveyance is presumed to be in fraud of creditor if made by a debtor after a suit is


filed against him while it is pending. (conveyance must be onerous title)

10. A contract which is void on its face cannot be the subject of reformation.
(the only subject of reformation is the real intention of the parties)

11. Once a contract is perfected, though the same is not in the form required by law, the
contracting parties may compel each other to observe that form.

12. Lesion or inadequacy of cause shall not invalidate a contract, unless there has been
fraud, mistake or undue influence.

13. The cause in a lucrative contract is the liberality of the benefactor.

14. An offer may become ineffective upon insolvency of either party before acceptance is
conveyed even if the insolvency is not judicially declared.

15. A contract of sale entered into between spouses is void.

16. A creditor to whom partial payment has been made may exercise his right for the
remainder and he shall be preferred to the person who has been subrogated in his place
in virtue of partial payment of credit.

17. If novation of the new obligation is void, the original one shall subsist.

18. In obligation which is subject to suspensive condition or term, the happening of the
condition or event will give rise to obligation.

19. Conditional obligation where the condition is both suspensive and potestative is void.

20. Those obliged to deliver or do something incur in delay only from the time the oblige
judicially or extrajudicially demands from them the fulfillment of the obligation.

21. No person shall be responsible for those events which could not be foreseen or
which though foreseen were inevitable unless there is an express stipulation to the
contrary.

22. The indivisibility of an obligation does not necessarily give rise to solidarity.

23. A creditor cannot be compelled partially to receive the prestations in which the
obligation consists.

24. Proof of actual damages suffered by the creditor is not necessary in order that
penalty may be demanded.

25. A person alternatively bound by different prestations shall completely perform all of
them.

26. Any waiver of an action for fraud is void.

27. When the fulfillment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void.

28. In facultative obligation, the right of choice belongs to the debtor unless it has been
expressly granted to the creditor.

29. Impossible conditions, those which are contrary to good customs or public policy and
those prohibited by law are deemed not agreed upon.

EXTINGUISHMENT OF OBLIGATIONS
T

1. Consignation, to be valid, generally requires a prior tender of payment.

2. Consignation of the amount required is not necessary to preserve the right to redeem.

3. Difficulty of service authorizes release of obligor but does not authorize courts to
modify or revise the contract between the parties.

4. It is a concept that derives from the principle that since mutual agreement can create
a contract, mutual disagreement can cause its extinguishment.

5. Where an application for a loan of money was approved, there arises a perfected
contract even before the delivery of the object of the contract.

6. If the obligation has been substantially performed, the obligor shall recover as though
there had been a strict and complete fulfillment. (less damages suffered by the obligee)

7. When the obligee accepts the performance knowing its incompleteness or irregularity,
the obligation is deemed fully complied with. (without expressing any protest or
objection)

8. Payment by a judgment debtor to the wrong party does not extinguish judgment debt.

9. Obligations requiring payment in foreign currency must be discharged in Philippine


currency as provided by RA 8183. (RA 529)

10. An agreement to pay a promissory note in dollars, while null and void under RA 529
does not defeat a creditors claim.

Certification 11. A _____________ implies that the check is drawn upon sufficient funds in the
T

12. The fact that the debtor had sufficient available funds

13. Consignation presupposes not only that the obligor is able, ready, and willing to pay
but more so in the act of performing his obligation.

14. A proof that an act could have been done is no proof that it was actually done
supports the concept known as tender of payment.

15. A certified personal check is not the legal tender nor the currency contemplated,
therefore cannot constitute valid tender of payment.

16. The rule that in case of extraordinary inflation or deflation of the currency stipulated
should supervene, the value of the currency at the time of the establishment of the
obligation shall be the basis of payment of obligations arising from law.

17. Under the principle of dation in payment, what is transferred is merely the
possession of the property. (ownership)

18. There can be no dation in payment when there is no obligation to be extinguished.

19. Tender of payment may be extrajudicial.

20. Consignation is necessarily judicial.