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OBLIGATIONS

Mark Anecito R. Perlas

MULTIPLE CHOICE
1. Unless the law or the stipulation of the parties requires another standard of care, the
obligation to give a specific thing carries with it the obligation to take care of it with:
a. extraordinary diligence

c. proper diligence of a good father of a family

b. ordinary diligence

d. answer not given

2. When the debtor binds himself to pay when his means permit him to do so, the obligation
is considered one:
a. with the condition dependent upon the debtors sole will; c. that is void
b. with a period

d. answer not given

3. When two persons in their own right are reciprocally creditors and debtors of each other
which fact extinguishes both debts to the concurrent amount, what takes place is known as:
a. Compensation

c. Confusion or merger

b. Novation

d. Remission

4. Compensation shall take place when:


a. One of the debts arises from a depositum or from the obligators of a depositary or of
a bailee in commodatum.
b. One of the debts consists in civil liability arising from a penal offense.
c. Two persons, in their own right, are creditors and debtors of each other.
d. Answer are not given
5. A written promise signed by Mariano, dated January 15, is worded as follows: I promise
to pay Juanita the sum of Fifty Thousand Pesos (PhP50,000.00) provided that if she should
fail in the May, CPA Examination, she shall return to me the said amount. The above note
gives rise to an obligation with:
a. Suspensive condition

c. Resolutory condition

b. Casual condition

d. Answer not given

6. Benito and Claro promise to deliver a particular car valued at PhP100,000.00 to Manuela
on or before January 15. The maturity date came and Manuela demanded for the car from
Benito and Claro. Benito was willing to deliver but Claro refused to deliver. In the case at
bar:
a. An action for specific performance will lie against either Benito or Claro.

OBLIGATIONS

Mark Anecito R. Perlas

b. Both Benito and Claro shall be liable for PhP50,000.00 each with damages.
c. Benito shall be liable for PhP50,000.00 without damages and Claro shall be liable for
PhP50,000.00 plus damages.
d. Answer not given.
7. Carlo and Cleo are solidary debtors of Corina, Luis, Edward and Abelito, joint creditors in
the amount of PhP20,000.00 How much can Corina collect from Carlo?
a. Corina could collect PhP2,500.00 from Carlo.
b. Corina could collect PhP10,000.00 from Carlo. Corina is then obliged to give
PhP2,500.00 each to Luis, Edward and Abelito.
c. Corina could collect PhP5,000.00 from Carlo.
d. Corina could collect the whole PhP20,000.00 from Carlo but will in turn give
PhP5,000.00 each to Luis, Edward and Abelito.
8. In an obligation, when only one (1) prestation has been agreed upon, but to extinguish the
obligation the debtor is allowed to render another in substitution, the obligation is:
a. Facultative obligation

c. Alternative obligation

b. Simple obligation

d. Joint obligation

9. In a joint obligation, A, B, and C are debtors of joint creditors, D,E, and F in the amount of
PhP180,000.00 As obligation is:
a. Pay D PhP60,000.00

c. Pay D PhP120,000.00

b. Pay D, E and F PhP180,000.00

d. Pay D PhP20,000.00

10. On January 5, Jose Dizon of Angeles City is obliged to give to Ruben Solis his only car.
There was no delivery until January 15, when the garage of Jose Dizon collapsed due to a
typhoon and his only car was totally destroyed. After his car was destroyed and lost, is Jose
Dizon still liable?
a. No. Even if Jose Dizon is already in default, he could plead impossibility of
performance.
b. Yes. The obligation to deliver the crew cab is changed to pay the equivalent value
because Jose Dizon is in legal delay.
c. No, because there was no demand by Ruben Solis to deliver the crew cab and the
specific oblect was lost due to fortuitous event. The obligation is extinguished.
d. Yes, because the contract is already perfected.

OBLIGATIONS

Mark Anecito R. Perlas

11. Pedro bought the cell phone of Juan and he paid PhP10,000.00 Juan promised to deliver
the cell phone on January 10. On the maturity date, what is the prestation of Juans
obligation.
a. the cell phone

c. PhP10,000.00

b. to give the cell phone

d. to pay PhP10,000.00

12. It is not a source of liability which will entitled the injured party to damages:
a. Culpa Aquiliana or negligence committed in the performance of an obligation.
b. MORA or delay.
c. Loss of the thing due to fortuitous event.
d. Contravention of the tenor of obligation.
13. O gets a loan of PhP100,000.00 from P which becomes due on November 23 and
mortgaged his house as security for the debt. On September 22, the mortgaged house was
completely destroyed by fire. On September 30, P demanded payment of Os obligation.
Is Ps demand valid?
a. No, because the obligation is one with definite period and the demand would be
premature.
b. No, the obligation is extinguished because the object of the obligation is lost through
a fortuitous event.
c. Yes, the debt becomes demandable because the period is established is for the benefit
of creditor.
d. Yes, the debt becomes demandable because the collateral was already lost even
though it was lost through a fortuitous event.
14. Which of the following conditions, if imposed on an obligation, will be disregarded and
will make the obligation immediately demandable?
a. If Juan will commit suicide

c. If Juan will not kill Pedro

b. If Juan will pass the bar examination

d. If Juan will not marry Juana

15. A promised to sell to B his house and lot in Quezon City if A decides to transfer and live
in Laguna. This is an example of an obligation with a:
a. suspensive condition

c. causal condition

b. potestative condition

d. resolutory condition

OBLIGATIONS

Mark Anecito R. Perlas

16. X, a minor sold to Y his parcel of land for PhP100,000.00. From the proceeds of the sale,
X deposited phP30,000.00 in the bank; spent for food, clothing and other personal expenses
PhP20,000.00; joined a tour abroad costing PhP20,000.00; and loaned PhP30,000.00 to Z
who became insolvent. Upon reaching the age of majority, X filed an action for annulment
of the contract, which the court granted. Y was required to return the land to X. How much
should X be required to return to Y?
a. PhP30,000.00

c. PhP80,000.00

b. PhP40,000.00

d. PhP70,000.00

17.A obliged himself to give B a car if B places among the top ten in the CPA Board Exam.
Subsequently, they agreed that A will give B the car if B merely passes the CPA Board
Exam. This is an example of:
a. Mixed novation

c. Implied novation

b. Real novation

d. Personal novation

18. One is not a requisite needed in order that an obligation shall be extinguished by loss or
destruction of the thing due:
a. When the things is lost without the fault of the debtor.
b. When the thing lost proceeds from a criminal offense.
c. When the thing is lost due to fortuitous event before the debtor incurred in
delay.
d. When the lost thing is specific.
19. Creditor and debtor agree that the latters obligation shall be paid in US dollar.
the due date of the loan, debtor refuses to pay in US dollar and insisted to

On

pay

in

Philippine Peso. Can debtor be compelled to pay in US dollar?


a. Yes. Because the obligation is in US dollar
b. No. Because notwithstanding their spitulation, Philippine Uniform
Law prohibits payment of monetary obligation in the

Currency
Philippines

in

any other currency other than Philippine peso;


c. Yes. Because Art. 1249 of the Civil Code expressly provides for one;
d. All of the above;
20. It is a mode of extinguishing an obligation by the delivery of money or
of an obligation in any other manner:

performance

OBLIGATIONS

Mark Anecito R. Perlas

a. Payment b. Performance

c. Condonation

d. Confusion

21. Novation is a mode extinguishing an obligation by:


a. Changing their object or principal condition;
b. Substituting the person of debtor;
c. Subrogating a third person on the rights of creditor;
d. All of the above;
22. Y has an outstanding obligation to X for P 20,000.00. On refusal by Y to pay his
indebtedness despite demands, X stole Ys 35 colored TV. X was thereafter
prosecuted for the crime of theft and was found guilty for the offense

charged

and

was sentenced to suffer an imprisonment of 2 years for months and 1 day as minimum to 8
years and 4

months as maximum. As the colored TV was no longer recovered, X was

also ordered to pay Y P20,000.00


refuses to pay

contending

liability arising from

representing the value of the stolen colored TV. X


that Y being indebted to him for P 20,000.00, Xs civil

the crime of theft is extinguished. Rule.

a. Extinguished for Y is indebted to X for P 20,000.00; c. Not extinguished


b. Not extinguished;

d. demandable

23. If your answer is B, why?


a. Because there is no compensation if one of the debts consists of civil liability
arising from an offense;
b. Because both liabilities can stand independently from each other;
c. Because both liabilities are separate in character;
d. All of the above.

24. Pepe condones the P 10,000.00 indebtedness by Jose. The obligation is

extinguished

by:
a. Condonation

d. Novation

b. Remission of debt

e. Both A and B

c. Compensation
25. Ramos is indepted to Erap for P 100 million. Erap is indebted to Gloria for P
million. Gloria, on the hand, is also indebted to Ramos for P 100 million.
obligations are due and demandable. What happens to their

obligations?

All

100
the

OBLIGATIONS

Mark Anecito R. Perlas

a. Extinguished

c. Both A and B are wrong

b. Not extinguished

d. Neither A or B is correct

26. If extinguished, by what?


a. Confusion

b. Novation

c. Set off

d. Payment

e. All of them

27. Gloria is indebted to Erap for P 1 million. Erap is likewise indebted to Gloria for P100
million. Both indebtedness are due and demandable and no creditor is running

on

either

of them. There is:


a. Compensation or set off by operation of law or legal compensation
b. Novation
c. Confusion or merger of rights of creditor and debtor
d. All of the above
28. Peter was on the day way to pay his indebtedness to John. Unfortunately, he was held
up and the robber took from him P 500,000.00 he was suppose to

deliver

John who learned about it from the news. Peter even reported the

incident

authority. After three (3) months, John was again demanding


loan. Peter refuses to pay contending that

to

the

from Peter the payment of his

having lost it by force majeure, his

indebtedness was extinguished. Rule.


a. Extinguished

c. Both are correct

b. Not extinguished

d. Both are wrong

29. Payment of monetary obligation in kind and accepted by the obligee is called:
a. Dacion En Pago or Dation in Payment
b. Application of payment
c. Tender of payment and consignation
d. All of the above.
30. The following are the modes for extinguishing an obligation. Which is not?
a. Payment or performance of an obligation;
b. Loss of a generic thing which is due;
c. Compensation or set off;
d. Confusion of merger of the rights of debtor and creditor;
e. Condonation or remission of debt

to

OBLIGATIONS

Mark Anecito R. Perlas

31. A promissory note executed in favor of B promising to pay him P 1 million with the
following stipulations: a) Interest 14% per annum; b) liquidated
damages 25% of the

principal as additional liability in case of suit; c) 5%

penalty on nonpayment of the obligation on its due date, is an obligation with:


a. A penalty clause;
b. Obligation with liability on payment of damages;
c. Obligation with interest;
d. All of the above
e. Only A
32. Land as an object of an obligation is divisible or indivisible obligation? Delivery of

car is divisible or indivisible obligation?


a. Both are divisible obligation

d. Only the car is indivisible obligation

b. Both are indivisible obligation e. C and D is the correct answer


c. Only the land is divisible obligation
33. A, B and C borrowed P 9 million from D, E and F. the loan has become due and
demandable. How much can D, E, or F collects from A, or B, or C?
a. Each of them can collect P 1 million from A, or B, or C
b. Each can collect P 2 million from A, or B, or C
c. Each can collect P 3 million from A, or B, or C
d. Each can collect P 9 million from A, or B or C
34. If the loan borrowed on a solidary liability, how much can either D or E, or F collects from
either A, or B, or c, or A, B and C all simultaneously?
a. P 9 million

b. P 3 million c. P 1 million d. P 6 million

35. If D was to collect P 9 million from C alone, are A and B still liable to E and F?
a. Yes, because obligation is not yet extinguished;
b. No, because obligation is extinguished;
c. Either A or B is still liable to either E or F for P 3 million each;
d. Either A or B is still liable to E or F for P 2 million each
36. On the preceding question, are A and B liable to C?
a. P 3 million each to C

c. P 1 million each to C

b. P 6 million each to C

d. P 9 million each to C

OBLIGATIONS

Mark Anecito R. Perlas

37. What about D, is he obligated to deliver the share of E and F?


a. P 3 million each to E and F

c. P 2 million each to E and F

d. P 6 million each to E and F

d. D has no obligation to E and F

38. An obligation to deliver either a horse or a cow or a carabao which are all due and
demandable is an alternative obligation. An obligation to pay P 100,000.00 or to deliver a car
as substitute is a facultative obligation. Both statements are:
a. Correct

c. Only the first statement is correct

b. Wrong

d. Only the second is correct

39. An obligation which is payable on January 15, 2007 or when debtors means permit him
to do so is what kind of obligation:
a. Obligation with a period

c. Obligation with a condition

b. Obligation with term

d. All of the above

40. A condition attached on the performance of an obligation which makes the


obligation immediately demandable but extinguishes the right and obligation
from an

arising

obligation is:

a. Protestative condition

c. Resolutory condition

b. Suspensive condition

d. All of the above

41. A condition which suspends the demandability or enforceability of an obligation is:


a. Suspensive condition

c. Protestative condition

b. Resolutory condition

d. None of the above

42. Conditional obligations are exemplified by the following:


a. A promise of reward upon winning on the competition;
b. The delivery of a thing subject to the happening of a future and uncertain

event;

c. The obligation to pay by way of price/reward upon proof of a past event

unknown

to

the parties;
d. An undertaking to pay in money upon passing in 2006 CPA Licensure

Examination;

e. All of the above


43. An obligation to pay an indebtedness without a term. An obligation to deliver
thing purchase on full payment of the price. An obligation to turn

over

the

possession of

OBLIGATIONS

Mark Anecito R. Perlas

the thing lease upon execution of the lease contract

between the parties. An obligation to

return the thing borrowed without any

agreement on the time for its return are:

a. Pure and simple obligation

d. All of the above

b. Conditional obligation

e. None of the above

c. Obligation with a period


44. An obligation which is immediately demandable is:
a. Pure and simple obligation
b. Conditional obligation

d. Alternative obligation
e. All of the above

c. Potestative obligation
45. Right acquired from an obligation is transmissible. Except:
a. By law
b. Stipulation between the parties
c. When the obligation is purely personal to the creditor
d. All of the above
e. None of the above
46. The remedies available to creditor on refusal by debtor to fulfill his obligation are:
a. to compel performance
b. To exhaust all properties of debtor
c. To be subrogated on debtors right of action against his debtor
d. To impugn debtors action in fraud of his creditor
e. All of the above
47. The rate of interest chargeable to an obligation are as follows:
a. Legal rate 12% per annum on a contracted indebtedness if not stipulated in case

of

suit;
b. Legal rate of 6% per annum if not stipulated when the obligation is not based
contracted indebtedness like refund of down payment in contract of sale;
c. The stipulated interest not contrary to moral;
d. Compounded interest when stipulated for as long as it is not contrary to moral
e. All of the above

on

OBLIGATIONS

Mark Anecito R. Perlas

48. When there is no reservation on interest and on prior installment, it is presumed


interest and prior installment had been paid when the obligee issued a receipt

that

on

the

principal and later installment is:


a. Correct

c. Only a presumption

b. Wrong

d. Both A and C are correct

49. The following are exceptions on responsibility arising from fortuitous event
a. Law
b. Stipulation between the parties
c. When the obligation requires the assumption of risk
d. All of the above
e. None of the above
50. Negligence is the failure of the obligator to observe that degree of cared required upon
him on the performance of his obligation depending on time, persons present, place and
other circumstances of an obligation. Contravention of the tenor of an obligation is a direct
violation of the conditions of debtors

obligation

as

agreed

upon

between

the

parties.
a. Both statements are correct

d. Only the second statement is correct

b. Both statements are wrong

e. Either the statement is wrong.

c. Only the first statement is correct

Trust in the LORD with all your heart and lean not on your own understanding; in all
your ways submit to him, and he will make your paths straight. Do not be wise in your own
eyes; fear the LORD and shun evil. Proverbs 3:5-7

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