BUSINESS LAW On August 10, 2000, the mortgaged building was totally lost due to an earthquake .

On August 10, 2000, the mortgaged building was totally lost due to an earthquake .On August 12, 2000, B
QUIZ ON OBLIGATION PART I demanded
payment from A. Is Bs demand valid?
1. Whenever in an obligations designated, it is presumed to have been established for the benefit of: a. No. The obligation is one with define period, thus the creditor cannot demand fulfillment of the obligation
a. Both the creditor and debtor c. The debtor before it is due.
b. The creditor d. The third party b. No. The mortgage was extinguished because the object of the contract was lost through a
fortuitous event.
2. A owes B P10, 000. C pays B P5, 000. Now B and C are the, creditors of A to the amount of P5, 000 each. C.Yes.The debt becomes due at once because the guarantee was lost although through a fortuitous event,
Suppose A unless the debtor can mortgage another property that is equally satisfactory.
has only P5, 000.Which is correct: d.Yes.The debts becomes due at once because the periods benefits is given solely to the creditor thereby
a. B and C should divide the P5, 0000 equally c.A may choose whom to pay giving the creditor the right to demand performance even before the due date.
b .C should be preferred d.B Should be preferred
10. X is obliged to give Y a specific car in July 15, 2000. X did not deliver the car on July 15, 2000. On July 20,
3. X is under obligation to deliver Ys car to the latter. However before delivery Z destroys the car. Which one of 2000, an earthquake destroyed the building where the car parked and the car was destroyed .Is X still liable?
the
Following is correct? a. Considering that no demand to deliver was made by Y and the specific thing was lost due to fortuitous
a. Xs obligation to give the car to Y extinguished event hence the obligation is extinguished.
b. X is allowed to recover from Z b.No. The obligation is extinguished, even if the debtor
c. Y has the right to bring an action against Z c. Yes X is already in legal delay, thus obligation to deliver the lost specified thing is converted into
d. X is not obliged to give Y an equivalent value of the car monetary
claim for damages.
4. XYZ are solidarily liable to A for P30, 000 which matures on July 1, 2001.On May 1, 2001, X paid A for the d. Yes. The creditor instead demand for a substitute of equivalent value from the debtor
whole
amount of debt. If on December 1, 2001, X will be reimbursed by Y, the latter will liable for: 11. In the three (3) of the following cases payment by the debtor is not recoverable .Which is the exception?
a. P10, 000 with the interest from July 1, 2001 to December 1, 2001 a. The obligation was not yet due and demandable but debtor believed it was already due and demandable
b. P10, 000 without interest b.The payment is only for interest and credited to the proper period
c. P10, 000 with interest from May 1, 2001 to July 1, 2001 c. The advance payment were made by both parties reciprocally
d. P10, 000 with interest from May 1, 2001 to December 1, 2001 d. The debt was aware of the period
5. A, B and C owe solidarily creditors X and Y P30, 000.X remitted the entire obligation in favor of A. The effect 12. C is the creditor of D in the amount of P50, 000. G is the guarantor of D. D paid C partially with P 20,000. A
is: not knowing
a. The obligation is not extinguished until a collect from B and C The partial payment of D and against the will of D, paid C the amount of P50, 000 .What is the effect of this
b. The obligation is not extinguished until Y is paid by X his share of the credit payment in
the obligation?
c. A cannot recover from B and C because remission in his favor extend to the benefit of B and C a. The obligation is extinguished. A cannot recover any amount from D, But A can demand reimbursement
d. a can recover from B and C their respective share of the debt from G the
amount of P50, 000
6. When A voluntarily takes charge of the neglected business of B without the latters authority where b. The obligation is extinguished. A can demand P30, 000 from D because this amount benefited D or A
reimbursement having been
must be made for necessary and useful expense, there is a: subrogated into the rights of C, can proceed against G.
a. Quasi delict c. Negotiorum Gestio c. The obligation is not extinguished. As payment being against the will D does not extinguish the
b. Quasi Contract d. Solutio Indebiti obligation
d. The obligation is extinguished. A can demand P30, 000 from D, but if D cannot pay, A cannot ordinarily
7. When the debtor binds himself to pay when his means will permit him to do so, the obligation is: proceed against guarantor G because A is not entitled to subrogation
a. Conditional c.Simple
b. Pure d.With a period 13. This is payment in kind:
a. Consignation c. Dation in payment
8. X and Y are solidary debtors of A, B, C and D, joint creditors to the amount of 8, 0000.How much can A b. Payment by cession d. Application for payment
collect from X?
a. A could recover 8,000 from X. A, in turn has to give B, C and D 2,000 each 14. A, B, C and D are joint creditors of E and F, solidary debtors in the amount of P40, 000.00.How much can A,
b. A could recover 4,000 only from X. B and
c. A could recover 2,000 only from X. C collects from E?
d. A could recover 8,000 from X. A, in turn does not have to give B, C and D 2,000 each a. A, B, and C could collect P20, 000.00 from E
b. A, B, and C could collect P30, 000.00 from E
9. A owes B 150,000 due on August 31, 2000. A executed a mortgage in favor of B on As building to guaranty c. A, B, and C could collect all the P40, 000.00 from E
the obligation. d. A, B, and C could collect P20, 000.00 from E and P10, 000 from F.
15.A obliged himself to pay X 10,000 in 30 days plus a penalty of 20,000 if he fails to pay the obligation in due necessary to
time. consider A in delay because:
A failed to pay the obligation in 30 days. X can demand from A. a. time is of the essence of the contract c. the demand would unless
a. The principal of P100, 000 plus P20, 000 penalty b.The obligation is expressly so provides d. answer not given
b. The principal of P100, 000 plus P20, 000 penalty, plus legal interest
23. One of the following shall produced effect of payment of debts
c. The principal of P100, 000 plus P20, 000 plus legal interest a. delivery of check c. delivery of a promissory note
d. The principal of P100, 000 plus P20, 000 penalty, plus legal interest, plus damages b.tender of Central Bank notes d. dacion en pago

16. A signs a promissory note and binds himself to pay X P100, 000 plus 15% per annum interest on June 24. If the creditor to who tender of payment has been made refuses without just cause to accept it, debtor shall
30,2000. be
a. Before June 30, 2000, X can demand payment released from responsibility by:
b. If on June 30, 2000 A is paying X the latter refuse the payment a. assignment of property c. adjudication or pacion en pago
c. A compel creditor X to accept payment before June 30, 2000 b. consignation of the thing or sum due d. condonation
d. Because the period is for the benefit of the debtor and creditor, X can refuse any tendered payment
before June 30, 2000 25. A executes a promissory note in favor of B who subsequently indorsed it in favor of A. The obligation to pay
the promissory
17. A owes X P50, 000 payable on or before June 30, 2000. S who is not a party to the contract and without is thereby extinguished because there is:
consent a. confusion or merger c. remission
and against the will of A paid X the P50, 000 on April 1, 2000 when the prevailing rate of interest was 12% b. novation d. compensation
per annum
a. S can ask reimbursement from A in the amount of P50, 000 plus 12% interest from April 1, to June 30, 26. The distinction between conventional subrogation and assignment is that in conventional subrogation:
2000. a. it is a mere cession of right
b. S cans reimbursement from A in the amount of P50, 000 b. an obligation is extinguished and another appears
c. S cannot ask reimbursement from A because the payment by S without the consent and against the will c. the same obligation, without being extinguished, is transferred to another
of A. d. the debtors consent is not necessary
d. S can ask refund from X because the payment by S was against the will of A.
27. A promissory note A and dated March 15, 2000 is worried as follows: I promise to pay B the sum of Fifty
18. When the obligation is extinguished because of the passage of time, this is: Thousand Pesos
a. fulfillment of resolutory c. prescription (P50, 000) provided that if she should fall I the October, 2000 CPA Examination, she shall return to me the
b. arrival of resolutory period d. rescission said amount.
The above note gives rise to an obligation with:
19. When the debtor abandons or transfers all his properties to his creditors so that the creditors may sell the a. suspensive condition c. resolutory condition
properties b. casual condition d. answer mot given
and out of the net proceeds the creditors recover their claims, this is called
a. dacion en pago c. payment by cession 28. A and B to deliver a particular car valued at P100,000 to C on or before September 15,2000 . September
b. tender payment and consignation d. remission 15, 2000 came and
upon demand by c from delivery from A and B, A was willing to deliver but B refused to deliver. In this case
at bar:
20. When the period is on or before a date, the debtor has the benefit of the period. This benefit is lost and a. An action for specific performance will lie against both A and B.
the obligation b. Both A and B shall be liable for 50,000 each with damages
becomes demandable when c. B shall be liable for P50, 000 without damages and A shall be liable for P50, 000 damages
a. the debtor attempts to ascond d. C can demand delivery of the car from A or B
b. after contracting the obligation, the creditor suspects the debtor of becoming insolvent
29. A,B and C owed a solidum P15,000 to D as evidenced by a promissory note due on September 30,1990. The
c. the guarantee given by the debtor is not acceptable to the creditor note
d. demand by creditor could be useless prescribed on October 1, 2000. On October 10, 2000 A paid D. In this case, A is:
a. entitled to collect P5, 000.00 each from B and C
21. Unless the law or stipulation of the parties requires another standard care, the obligation to give a thing b. not entitled to reimbursement from his co-debtors for the shares of the latter
carries with the c. entitled to recover from D
Obligation to take care with: d. answer not given
a. Extra-ordinary diligence c. diligence of a good father of a family
b.degree of care agreed upon by the partys d. diligence of a good family of a father 30. This a promissory note I promise to pay A, B and C the sum of P18, 000.(Signed) D, E and F
a.F is obliged to pay C P6,000.00 c. F is obliged to pay C P12,000.00
22. A entered into a contract with B by which A promised to deliver at price stipulated in the contract. Such b.F is obliged to pay C P2, 000.00 d. F is obliged to pay C P18, 000.00
delivery is
to made on February 14, 2001 with penalty in case of default. In this case, no further demand by B on A is
31. A and B are solidary debtors of C,D,E and F joint creditors in the amount of 20,000.How much can C collect in court, which of the following is incorrect?
from a.co-debtors, guarantors and securities are released from the obligation unless they consented
A? b. the obligation remain to subsist
a. C could collect P2, 500.00 from A c. the obligation is extinguished
b. C could collect from A P10, 000.00.C is then obliged to give P2, 500 each to D, E and F d. none of the above

c. C could collect P5, 000 from A 39. A, B and C are joint debtors of joint creditors W, X, Y and Z in the amount of P300, 000. How much can W
d. C could collect the whole P20, 000 from A but will in turn give P5, 000 each to D, E and F. and X
collect from B?
32. A owes B who has two (2) legitimate children, 50,000 payable on December 31, 2000 a. P 75,000 c. P 150,000
b. P 100,000 d. P 50,000
a. If A dies before December 31, 2000, B cannot collect from A the heirs of A
b. If A dies before December 31, 2000, B cannot collect from A the heirs of A 40. D owes C 10,000 payable on December 25. Later, D forced C to sign a promissory note for 10,000 payable
c. If dies, his two (2) legitimate children cannot recover from A his obligation on December 25.
d. If both A and B die, the heirs of B can collect from heirs of A. If all the other requisites of compensation are present, are both debts extinguished?
a. Yes, under the legal compensation
33. If the obligor binds himself to perform his obligation as soon as he shall have obtained the loan from a b.No, Bs consent was obtained by force
certain bank c. yes, with approval of the court
this obligation is: d. not given
a. with a term c. suspensive
b. conditional d. resolutory 41. X has been missing for sometime leaving for no one to manage his properties A and B jointly took charge of
the
management thereof. However, due to the fault of A, the properties of X were damaged .The liability
34. If to refers to a joint obligation:
therefore to X for
a. One in which debtor is liable for the entire of obligation, and each creditor is entitled to demand the whole
damages shall be:
obligation
a. only A shall be liable
b.one in which either one of the parties is indispensible and the other is not necessary
b. both shall be jointly liable
c. one in which of the obligation is resolutory condition of the other, the non-fulfillment of which entitles the
c. both shall be solidarily liable
other party
d. they are not liable since at fault for having abandoned his properties
to rescind the contract
d. one which each of debtors is liable only for a proportionate part of the debt and each creditor are entitled
42. X by mistake delivered to A and Ba sum of money which should have been delivered to C and D. X now
only for a
demands the
proportionate part of the credit.
return of the same from A and B. The liability of the latter for the sum of money to which they are not
entitled shall be:
35. It presupposes not that the obligor is bale, ready and willing but more so, in the act of performing his
a. A and B shall be liable solidarily
obligation
b. A and B shall be liable jointly
a. promissory note c. bill of exchange
c. They are not liable for having received the money in good faith
b. tender of payment d. obligation to sell
d. X has not the right to recover as he was negligent in the delivery of the money
36. Which of the following is not considered as quasi-contract?
a. Solutio Indebiti 43. A owes B a sum of money evidenced by promissory note which has prescribed without the knowledge of A,
b. when the third person, without knowledge of the debtor, pays the debt paid B
his debt. Later A reimbursed X for the payment of the latter to B although he has no obligation to do so.
After payment A now wants to recover hi payment to X on the ground that he was not obliged to reimburse
c. negotiorum gestio
him.
d. reimbursement due the person who saved property during fire or storm without the knowledge of the
Which of the following is not correct?
owner
a. A can recover his reimbursement to X to prevent unjust enrichment on Xs part at the expense of A.
b. A cannot recover because he has civil obligation to reimburse X for the latter paid his debt to B
37. D1, D2 and D3 oblige themselves solidarily to give Ca specific car valued P12, 000.On due date demanded
delivery
but the debtors failed to deliver .The next day, while D1 still in possession of the car, it got lost due to c. A cannot recover because he partakes of a natural obligation
fortuitous event. The d. A cannot recover since there was reimbursement by mistake
right of C is
a. None, obligation is totally extinguished 44. In which of the following instances does legal subrogation not apply?
b.proceed against any of the debtors for the value and damages a. when a creditor pays another creditor who is preferred, even without the debtors knowledge
c. proceed against D1 only, because he is the one in possession at the time it was lost b. when the third person, not interested in the obligation, pays with the express or tacit approval of the
debtor
38. In tender and consignation: if after consignation is made, the creditor allow the debtor to withdraw the
thing deposited
 c. when a third person pays the creditor without knowledge or against the will of the debtor and yet entitled c. A still liable to b because he was the one who proposed to B that C shall substitute to him as debtor
to beneficial d. A is longer liable to b despite the insolvency of C unless said was of the public knowledge or known to
reimbursement him when he
d. when, even without knowledge of the debtor, a person interested in the fulfillment of the obligation pays, delegated the debt.
without
prejudice to the effects of the confusion as to the latters share.
QUIZ ON OBLIGATION-PART II
45. A bought biscuits from a grocery store and was hospitalized due in food poisoning as a result of toxic
substance
contained in the biscuits sold to retailers by the Ace Foods Inc. A is now suing the said producer 1. In three of the following cases, compensation cannot be claimed by the debtor except:
corporation for damages a. By the bailee in commodatum;
Decide: b. By the depositor in contractor deposit;
a. A has no right to claim damages from the producer because there was no contract between them. c. By the person obliged to give support due by gratuitous title;
b. Ace Foods Inc is not liable to A because the latter was negligent in eating the biscuit despite the d.By the debtor in an obligation arising from a penal offense
presence of harmful
substance therein. 2. Which of the following is not a requisite for legal compensation?
c. A must claim damages from the grocery store and not from the producer since the grocery was the one a. Both debts are due;
which sold the b. Both are liquidated and demandable;
poisoned food to A. c. By the person obliged to give support due by gratuitous title;
d. Ace Food Inc is liable for damages due to quasi-delict to its negligence in the preparation of the biscuits d. By the debtor in obligation arising from a penal defense
thus causing
to A. 3. A owes B P1M guaranteed by X. In turn, B owes A P.5M. A failed to pay B and the latter is now collecting from
X.
46. Acceptance of commercial document is equivalent to payment: a. X is liable to B for P1M because as guarantor he is liable for the debt of the debtor in case of non-payment
a. The check has been received as payment thereof;
b.The check has become valueless because of the creditors fault b. X shall be liable to B for P.5M only if the latter agrees to the compensation;
c. The check is a managers or cashiers check c. X cannot claim compensation against B because the latter owes him nothing;
d. The promissory note is used as payment d. X can set up compensation as regards what B owes A

47. The debtor shall lose every right to make use of the period except:
a. When after the obligations has been contracted he becomes insolvent, unless he gives a guaranty or
security for the debt
b.When does not furnish a guaranty or security for the debt
c. When the debtor attempts to ascond
d. When he violates any undertaking consideration of which the creditor agreed to the period.
48. When the debtor binds himself to pay when his means permit him to do so is one:
a. With a condition is dependent upon the debtors will
b.With resolutory period upon the debtors will
c. With period dependent upon the debtors will
d. With the condition to be fixed by court
49. D owes C P1M. G is the guarantor. A stranger S paid C the debt D without the knowledge of the latter. In
this
case:
a. If D fails to pay S, the latter can compel G to pay him;
b. If G pays S, the former can demand reimbursement from D;
c. S cannot compel G to pay him;
d. D has no obligation to reimburse S because he paid without the consent of D.
50. D owes C P1M. A proposed to B that C will pay As debt and that he will be released from all liabilities not
him. B and
C agreed to the proposal. Later when B tried to collect from C, he found out that he was insolvent
a. A is no longer liable to B because of the substitution of C in his place if he had no knowledge of the
insolvency
despite it being of public knowledge;
b. A is no longer liable to B even if he had knowledge of Cs insolvency despite it being of public knowledge
4. A owes B P1M guaranteed by C. B assigns his credit X. X assigns his credit to Y. Y assigns his credit to C, the
guarantor,
Does A still have to pay C?
a. No because the guarantor is liable to the creditor B and not to debtor A.
b.Yes because the guarantor has now become the creditor;
c.No because it is the obligation of the guarantor pays the creditor for the benefit of the debtor;
d. Yes because the guarantee has been extinguished by confusion or merge of rights
5. A owes B P1M. B owes A P.5M. B assigned credit to C with the consent of a who reserved his right to
compensation.
a. A claim compensation against C as to what b owes him.
b.A cannot claim compensation against C because he consented to the assignment
c. A cannot claim compensation against C without his consent
d. A cannot claim compensation against C even without the reservation
6. A owes B P1M due on Jan.21, 2001. B owes a P.2M due on Jan.20, 2001 and P.3M due on March 2, 2001. B
assigned the
credit to Con Feb.2, 2001 without the knowledge of A who obtained knowledge of the assignment of credit on
Feb. 4, 2001
a. A cannot claim compensation against C because of his knowledge of the assignment;
b. A can claim compensation up to P.2M only;
c.A can claim compensation of all the debts of B to him;
d. Legal compensation cannot take place.
7. A owes B P1M on Feb. 3, 2001. B owes A a lancer GSR worth P1M due on Feb.4, 2001
a. On Feb. 3, 2001, A cannot claim compensation because one of the debts is not yet due;
b. On Feb. 4, 2001, A cannot claim because both debts are now due;
c. The parties can agree on compensation only Feb.4, 2001 when both debts are due;
 d. Legal compensation cannot take place to X
as payment for the repair of his car .The obligation of X in this case is extinguished by:
a. novation c. confusion or merger of rights
8. A owes B P1M with 12% interest. As agreed upon among parties, the principal amount shall be paid to B but b. compensation or merger of rights d. condonation or remission of rights
the interest
shall be given to C who accepted the stipulation in his favor. Later A and B agreed that instead of cash it 16. C bought only the car of D on February 15, 2002 and D agreed to deliver it to C on April 30,2002. They did
shall be parcel of not agree
land worth P1M on the place of delivery .Where is the place of delivery?
a. The novation of the obligation shall also extinguish the accessory obligation to pay the interest to c. a. domicile of the debtor c. where is the car on April 30,2002
b.In the absence of the consent of C to the novation, he is still entitled to the interest; b. where is the car on February 15,2002 d. domicile of the creditor
c. With or without the consent of C, the obligation to give the interest to him is also extinguished because of
the novation of 17. D has an obligation to deliver his dog to C on October 16, 2001. On October 10, 2001, the said dog gave
principal obligation; birth to seven
d. Since the parcel of land could possibly earn interest, the obligation to pay interest is extinguished puppies. On October 16, 2001, D failed to deliver the said dog .Who shall be the owner of the dog on October
16, 2001?
9. A owes B a sum of money and secured by a pledge on his car. Later, the car is found to be in the possession a. C because that it the agreed date of delivery
of A. b.D because the dog is still in his possession;
a. It is presumed that the debt of A has been condoned; c.C because he has the right to demand its delivery
b. It is presumed both the debt and pledge has been remitted; d. D because the delivery of the dog is dependent upon his will
c.It is presumed that debt is extinguished;
d. It is presumed that the pledge is condoned 18. When the obligor binds himself to pay when his means permit him to do so, the obligation is:
a. conditional b. facultative c. pure d. with a period
10. In which of the following is consignation alone without prior tender of payment not valid to extinguish the
obligation? 19.A obtained a loan from B in the amount of Php 10,000.00 payable on December 31,2002 plus 10% interest.
a. When two or more persons claim the same right to collect; A won in the
b. When the title of the obligation has been lost; lotto and on March 30, 2002 he offered to pay his loan to B plus Php1,000.00 as interest but B refused to
C.When with just a cause the creditor refuses to issue a receipt; accept his payment
d. When is incapacitated to receive the payment at the time it is due. .Which of the following statement is correct?
a. A can file a consignation in court because B refused to accept his payment without justifiable cause.
11. Which of the following is not a requisite of payment by cession? a. One debtor and two or more creditors b. B can compelled to accept the payment if the interest will be increased
b. The debtor is insolvent c. B must accept the payment because it is complete
c. The creditors become owners of the properties assigned to them d. A cannot compel to B to accept his payment because the loan is not yet due.
d. The creditors are authorized to sell the properties of the debtor
20. D has the obligation to give a two-year black male dog to C on April 30,2002.On April 2,2002, all of the
12. Which of the following is not a requisite of Dation in payment? dogs of D
a. One debtor and two or more creditors were hit by lightning and they all died. Therefore:
b. The debtor is insolvent a. The obligation of D to C is extinguished c. C can only demand for damages from D
c. The creditors become owners of the property used as payment; b. D must still gave the two year old black male dog to C. d. C can demand for the dog plus damages
d. Acceptance of the creditor is not necessary

13. D obtained a loan from C payable on or before December 31, 2002. Which of the following statements is 21. In alternative obligation, the right of choice belongs to:
correct? a. The creditor c. Both creditor and debtor
a. Can only pay the obligation on December 31,2002 b. The debtor d. Third person
b. Can demand payment from D on before December 31, 2002 the right of choice is with the debtor, unless expressly given to the creditor.
c. Can demand payment from D even before December 31,2002
d. D can pay on before December 31,2002 22. In facultative obligation the right choice belongs to:
a. The creditor c. Both creditor and debtor
14. The obligation of Pedro in favor Juan amounts to Php 30,000.00 payable on May 5,2002. On April 15, 2002 b. The debtor d. Third person
Ciriaco and e. None of the above
Pedro agreed that Ciriaco will pay the obligation of Pedro. Juan gave his consent to the said agreement .The 23. The sources for liability for damages are the following except:
change of the a. Fraud b. Negligence c. Delay d. Quasi-delict
debtor in this called:
a. substitution b. expromission c. subrogation d. delegacio 24. When the fulfillment of the condition depends upon the sole will the debtor, the conditional obligation shall
be:
15. X issued a promissory note to A amounting to Php 10,000.00. A purchased a computer from B and he a. Voidable b. Unenforceable c. Valid d. Void
indorsed the potestative on the part of the debtor: if suspensiveVOID; if resolutoryVALID. @_@???!!
note to B. B indorsed the promissory note to C in payment of his loan .C indorsed the said promissory note
25. Z obtained a loan from X on the amount of 10,000.00. Z promised to pay the said loan of 10,000.00 to X as 33. If a third person pays an obligation. What are the rights which are available to him if he pays the obligation
soon as with the
possible. Two year had lapsed but the loan is still unpaid .The remedy available to X is: knowledge and consent of the debtor?
a. To file an action against Arturo for collection of debt First answer He can recover from the debtor the entire amount, which he has paid
b. To demand payment for damages Second answer He is subrogated to all the rights of the debtor ?
c. To attach the property of Z; a. Both answers are correct c. Only the first answer is correct
d. To ask (petition) the court to fix the period b. Both answers are wrong d. Only the second answer is correct
26. A, B and C are solidarily creditors of D in the amount of 15,000.00. C demanded payment from D. After the
demand for 34. A, B and C executed a promissory note binding themselves to pay 9,000.00 to X, Y and Z. The note is now
payment by C, D in order to extinguish the entire obligation may pay to: due
a. A only b. B only c. C only d. To either A or B and demandable. Can the creditors proceed against A alone for the payment of entire debt?
a. No each creditor can collect 3,000 from A
b. Yes either X, Y or Z can collect 9,000 from A
27. No person shall hold responsible by reason of fortuitous event except: c. No each creditor can collect only 1,000 from A
a. When time is the essence of the contract; d. Yes the promissory note is silent with respect to the rights of the creditor s, the obligation is presumed to
b. When demand would be useless solidarily
c. When the nature of the obligation requires the assumption for risk
d When the obligation is purely personal in nature 35. Indivisibility as distinguished from solidarity
a. Plurality of subject is invisible
28. Dela Cruz obliged himself to deliver a determinate horse to Mary Jane on November 5.Whewn the date of b. When the obligation is converted into one of indemnity for damages because of breach, the character of
the delivery of the obligation
the horse arrived, the horse has already an offspring. Dela Cruz is obliged to deliver the: remains
a. Horse only c. Refers to the legal tie or vinculum
b. The horses as well as the offspring d. Refers to the prestation which constitute the object of obligation
c. Dela Cruz can refuse to deliver both the horse and offspring
d. Dela Cruz may ask Mary Ann to pay the offspring 36. A source of obligation not arising from law
a. negotiorum gestic b. solutio indebiti c. culpa aquiliana d. contract
29. When the obligor voluntarily prevents the happening of the condition it is deemed that the condition is:
a. Constructively fulfilled c. constructively demandable 37. The loss or deterioration of the thing intended as a substitute through the negligence of the obligor does
b. constructively extinguished d. constructively nullified not render him
liable
30. A bound himself to deliver a determinate horse to B on January 14, 2002 .On January 16, 2002 the horse A person alternatively bound by different prestation shall completely perform one of them
was struck and a. true, true b. true, false c. false , true d. false ,false
killed by lightning
a. A is liable for the loss of horse because he was in delay 38. There being no express stipulation and if the under taking is to deliver a determinate thing the payment
b. A has the obligation to replace the horse shall be made
c. As obligation is extinguished a. At the domicile of the debtor
d. B may claim damages from A b. at the domicile of the creditor
c. whatever that thing might be at the moment the obligation was constituted
31. Payment by cession as distinguished from the Dation in payment d. whenever the thing might be at the moment the obligation is to be fulfilled
a. The debtor is not necessarily in a state of financial difficulty
b. The effect is to release the debtor for the net proceeds of the things cede or assigned 39. Demands is not needed to put the debtor in fault, except
c. The property is alienated by the debtor to the creditor in satisfaction of a debt in money a. When the demand would be useless
d. What is delivered by the debtor is merely a thing to be considered as the equivalent of the performance b. When the parties so stipulate
of the obligation c. When time is the essence
d. When the fixing of the time is the controlling motive for the establishment of the contract
32. A owes B 20,000 which become due and payable last June 23, 2001. On that date A offered B 10,000 the
only money
he then had but B refused to accept the payment. A therefore met C, Bs 23 year old son, to whom he gave
the 10,000
with the request that he turn the money to B. The money was stolen while in the Cs possession. How much
may B
still recover from A? 40. Culpa aquiliana as distinguished from culpa contractual
a. 20,000 b. 10,000 c. 15,000 d. 0.00 a. Proof of due negligence in the selection and supervision of the employees is not as a defense
b. Proof of the contract and of its breach is sufficient prima facie to warranty recovery
c. The negligence of the defendant is merely an incident in the performance of the obligation
d. The source of liability is the defendants negligent acts or omission itself
 47. A, B and C bound themselves to deliver X a specific car worth P3M. Due to the fault of A the car was lost. In
41. This is the kind of diligence that the obligor must observe in the performance of his obligation to give this case:
something: a. X can claim damages from any one of the three proportionate part of liability because the obligation is
a. Diligence of a good father of a family indivisible
b. Extraordinary diligence of a good father of a family b. X can claim only from A the whole amount of damages other than value of the car
c. Diligence of a good father of a family c. Since solidarily liabilities for damages, X can claim the same from any of the three
d. Diligence of a good father of a family even if the law or the stipulation requires another standard of care d. D is only liable for damages although B and C are liable for their respective shares in the obligation

42. D owes C P1M. X without the knowledge or against the will of D paid C P2M. Can X get reimbursement from 48. L, M and N are the solidarily debtors of Y for the amount of 300,000 payable as follows:
D? L- 50,000 payable when he passed the CPA Boards Exams
a. P2M by the way of reimbursement from D to prevent unjust enrichment on the part of D at the expense of M- 100,000 payable on February 14, 2004
X N- 150,000 payable upon completion of his construction project
b. P1M only for that is the extent of the benefit of D. If L will pass the CPA Boards Exams, what shall be the right of Y?
c. No reimbursement because the payment was not proper being without the knowledge or against the will a. demand 50,000 from L only c. demand 300,000 from L,M and N
of D. b. demand 50,000 from L,M and N d. demand 300,000 from L only
d. P1M plus interest from the time of payment until reimbursement
49. A obliged himself to deliver the cans of powdered milk B from Pangasinan to Manila. While his truck was
43. Mel sold to Jay her car and promise to deliver the car to Jay on January 30, 2004 .On January 15, 2004, Mel traveling on the
sold the same North expressway, it was hi-jacked by the band of robbers who also took the cans of milk belonging to B. Is
car to Patrick and Patrick immediately possessed the car. As of February 5, 2004, Jay has not received the liable for the
car from Mel. loss of goods?
a. Jay can cancel the contract of sale between Mel and Patrick because the contract of the sale between a. No because they were generic things and they cannot be lost
him and Mel was b. Yes because he was in possession of the same at the time of the loss and therefore presumed at fault.
perfected first; c. Yes because there was no stipulation exempting him from loss in case of fortuitous event
b. Mel cannot considered in delay because there was no demand yet from Jay d. No because the loss was due to fortuitous event
c. Mel is already in delay, even if there was no demand from Jay and she shall be liable for damages
d. The sale is rescissible because of damage caused to Jay 50. A brought her diamond ring to a jewelry shop for cleaning and the latter undertook to return the ring by
February 1,2000.
44. S sold his car with Plate No. XYZ 123 to B and B paid 150,000 to S. They agreed that the said car will be When the said date arrived, the jewelry shop informed A that the job was not yet finished and they asked A
delivered by S to to return
B on December 14, 2002 .Which of the following statements is true based on the facts given? five days after. On February 6, 2000 A went to the shop to claim the ring but she was informed that the
a. B is considered as the owner of the car on December 14, 2002 same was stolen
b. S may deliver the car to B on December 12.2002 and compel to B to accept it. by a thief the night before. Decide
c. B may demand for the delivery of the car on December 13, 2002 a. The jewelry shop is not liable for the loss because it took place due to the force majeure
d. S will be delay if he will not be able to deliver the car on the maturity date b. The jewelry shop is not liable if it was so stipulated between the parties
c. The jewelry shop is not liable for the loss despite the force majeure because of delay
45. Which of the following statements is true and correct? d. The jewelry shop is not liable for the loss because there was no delay on its part
a. Where an obligation is secured by a pledge or mortgage and it is not paid when due, the pledge or
mortgagee may
appropriate the thing given by the way of pledge and mortgage QUIZ ON OBLIGATIONS PART III
b. In both pledge and mortgage, the creditor is entitled to deficiency judgment
c. Pledge and mortgage are accessory contracts because they cannot exist by themselves MULTIPLE CHOICE. Select the best answer by writing the letter of your choice
d. Unless otherwise agreed upon by the parties, the sale of the mortgaged property
extinguishes in full the 1. The following are the requisites of an obligation, except
a. Passive subject, debtor, debtor or obligor
mortgage constituted thereon.
b. Active subject, creditor, or obligee
c. Efficient cause
(a) pactum commissorium (prohibited by law) d. Presentation
(b) in a pledge, the creditor does not get the deficiency
(d) if theres still deficiency even after the property mortgaged had been foreclosed, 2. Obligations arise from the following except:
debtor-mortgagor is still liable for the deficiency. a. Contracts c. Law
b. Quasi-contracts d. Negligence
46. A, B and C borrowed P3M from D, E and F evidenced by a promissory note worded as follows to wit.I
promise to pay D, E 3 It is a voluntary administration of the property of another without his consent
and F P3M. (Sgd) A, B and C. How much can D collect from A? a. Negotiorum gestio c. Quasi-contract
a. P3M b. P.5M c. P1.5M d. P1M b. Solutio indebiti d. Contract
4. It is a wrong committed without any pre-existing relations between the parties b. An obligation with a suspensive condition
a. Natural obligation c. Quasi-contract c. An obligation with a resolutory condition
b. Quasi-delict d. Culpa contractual d. An obligation with a period

5. Unless the law or stipulation of the parties requires another standard of care, every person obliged to give 16. One of the following is a void obligation?
something is also obliged to take care it with a. D is obliged to give C 5,000.00 if C does not go to the moon
a. Extraordinary diligence b. D is obliged to give C 5,000.00 if D goes to Baguio
b. Diligence of a father of a good family c. D is obliged to give C 5,000.00 if C goes to Baguio
c. Diligence of a father of a good family d. D is obliged to give C 5,000.00 if D wins the first prize in the sweepstakes on a ticket that he had already
d. Good diligence of a father of a family
purchased.
6. The creditor has a right that is enforceable against a definite passive subject. The right is known Potestative. Depends upon the sole will of the debtor. Void.
a. Personal right c. Determinate thing
b. Real right d. Real thing 17. D is obliged to give C 10,000.00 if X dies. This example of:
a. An obligation with a suspensive condition
7. It is a thing that is particularly designated or physically segregated from all others of the same class. b. An obligation with a resolutory condition
a. Generic thing c. Determinate thing c. An obligation with a period
b. Indeterminate thing d. Real thing d. A pure obligation

8. One of the following is a determinate thing 18. When debtor binds himself to pay when his means permit him to do so, the obligation is:
a. A BMW with the license plate no. HNT 888 c. A Honda Civic Sir car a. An obligation with a resolutory condition
b. One of the vehicles d. A gold Rolex watch b. A pure obligation
c. An obligation with a suspensive condition
9. Demand must be made for delay to exist in one of the following case. d. An obligation with a suspensive period
a. When it was stipulated by the parties that demand need not made
b. When the law provides that demand need not be made 19. Whenever a period is designated in an obligation, the said period shall presumed to have been established
c. When the obligation is silent on the necessity of demand for the benefit of:
d. When the time is of the essence of the contract a. The debtor c. Both the debtor and the creditor
b. The creditor d. either of the parties
10. This refers to delay on the part of the creditor
a. Mora solvendi ex re c. Mora solvendi ex persona 20. The debtor shall lose the right to make use of the period in the following cases,
b. Compensation morae d. Mora accipiendi a. When he becomes insolvent
b. When he violates any undertaking in consideration of which of the creditor agreed to the period
11. There shall be no liability for the loss due to fortuitous event in one of the following case.
a. When the debtor delays c. When the debtor attempts to abscond
b. When the parties stipulated that there shall be liability even in case of loss due to fortuitous event d. When he does not furnish any guaranty or security to the creditor

c. When the nature of the obligation requires the assumption of risk
d. When there was no stipulation as to liability of the debtor in case of loss due to fortuitous event
12. The following are the remedies of the creditor to pursue his claims against the debtor except:
a. Pursue the property owned
b. Exercise all the rights and bring all the actions of the debtor for the said purpose (accion subrogatoria)
c. Impugn the acts which the debtor may have done to be defraud his creditor. (accion pauliana)
d. Compel the debtor to perform the service in obligations to do ???!!
failure to furnish the guaranties or securities promised. ???
21. An obligation ceases to be alternative and becomes a simple obligation in the following cases,
a. When the debtor has communicated his choice to the creditor
b. When the right of choice has been expressly granted to the creditor and his choice has been
communicated
to the debtor
c. When among the several prestation that due only one is practicable
d. When several prestation are due to the performance of one is enough to extinguish the obligation

13. D borrowed 50,000.00 from C. C dies before he has collected the debt leaving S, his soon as heir.
Which of the following statements are correct?
a. S can collect from D although D and C did not agree that the right to the debt will pass on to the heirs of
C lost
b. S cannot collect because the credit right is personal to C.
c. S can collect only if D and C agreed that the right to the debt will pass on the heirs of C
d. S cannot 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 Examination. This obligation is an example of:
a. A pure obligation
22. D obliged to give C specific watch, a specific ring, or a specific bracelet .The parties agreed that C will have
the right
to choose the thing this will be given to him. Before C could make his choice, the watch and the ring are
through
Ds 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 rings 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. 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 31. Consider the following statements:
plus damages
23. D obliged to give C 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 even after before substitution, the obligation is extinguished
d. a. If the ring is lost through the debtors fault after substitution, the debtor shall pay the damages
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 penal clause
III. The nullity of the penal clause carries with it the nullity of the penal clause of the principal obligation
IV. The nullity of the penal clause carries with it the nullity of the penal clause of the principal obligation
a. Statements I and III are true
b. Statements I and IV are true
c. Statements I and II are true
d. Statements II and IV are true

24. A, B, C and D are obliged to give V, W,X,Y and Z 20,000.00 32. D borrowed from C 50,000.00.The obligation is secured by a chattel mortgage on Ds Toyota car.
a. V may collect from B 20,000.00 Subsequently , D paid
b. V may collect from B 5,000.00 C 20,000.00 .Unknown to D, T, a third person , pays C 50,000.00 believing that D still owed C such
c. V may collect from B 1,000.00 amount.
d. V may collect from B 4,000.00 a. T can recover 50,000.00 from D.If D cannot, T can foreclose the mortgage on Ds Toyota car
b. T can recover nothing from Dbecause he paid out without knowledge and consent of D
25. A ,B,C and D joints debtors ,are obliged to give V,W,X,Y and Z solidary creditors 20,000.00 c. T can recover 30,000.00 form D. If D cannot, T can foreclose the mortgage on Ds Toyota car
a. V may collect from B 20,000.00 d. T can recover 30,000.00 form D.If D cannot ,T can foreclose the mortgage on Ds Toyota car
b. V may collect from B 4,000.00
c. V may collect from B 5,000.00 33. The following concerning payment by cession are true except
d. V may collect from B 1,000.00 a.The creditors become the owners of these 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
26. A ,B,C and D joints debtors ,are obliged to give V,W,X,Y and Z solidary creditors 20,000.00 of debtors
a. V may collect from B 20,000.00 ???!! solidary debtors ada? properties
b. V may collect from B 4,000.00 c. The debtor must be insolvent
c. V may collect from B 5,000.00 d. Cession affects all the properties of the debtor except those exempt from execution
d. V may collect from B 1,000.00
34. D obtained from ABC Bank a loan of 12,000.00 payable at the end of 10 years. Before maturity, an
27. A ,B,C and D solidarily debtors ,are obliged to give V,W,X,Y and Z solidary creditors 20,000.00 extraordinary
a. V may collect from B 20,000.00 inflation supervened causing the value of the debt to fall to 4,000,000.00 on the date of maturity. On due
b. V may collect from B 4,000.00 date, D
c. V may collect from B 5,000.00 must pay ABC Bank:
d. V may collect from B 1,000.00 a. 12,000,000.00
b. 4,000,000.00
28. A, 25, B,35 and C,17 are solidary debtors of X in the amount 9,000.00 c. 20,000,000.00
a. V may collect from A 9,000.00 d. 16,000,000.00
b. V may collect from B 6,000.00
c. V may collect from C 9,000.00 35. B borrowed from XYZ Bank 2,000,000.00 payable at the end of 5 years. Before maturity, an extraordinary
d. X may collect because the obligation is voidable, C being a minor inflation supervened causing the value of the debt to rise to 5,000,000.00 on the date of maturity. On due
date,B
must pay XYZ Bank:
29. The folllowing obligations are divisible, except an:
a. 2,000,000.00
a.Obligation to give definite things
b. 5,000,000.00
B.Obligation which has for its object the execution of certain number of days or work
c. 800,000,000.00
c. Obligation which has for its object the accomplishment work by metrical units
d. 20,000,000.00
d. Obligation which by its nature is susceptible of partial performance
36. The money or currency which the debtor may compel the creditor to accept in payment of a debt, either
30. In obligations with a penal clause, the creditor as a rule may recover from the debtor in case of breach of
public or
the following:
private is known as:
a. The penalty as agreed upon plus damages and interest
a. Negotiable instrument
b. The penalty and damages
b. Legal tender
c. The penalty and interest
c. Negotiable document of title
d. The penalty only
d. Mercantile document
37. The transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of 44. Henry, husband, and Wilma, wife are legally separated. By order of the court which decreed the legal
performance is known as: separation, Henry
a. Payment by cession is obliged to give a monthly support of 10,000.00 to Wilma payable within the first five days of the month.
b. Dation in payment Wilma owes
c. Application of payment Henry 10,000.00 by way of a business loan. On the other hand, Henry has not yet given Wilmas support of
d. Consignation 10,000.00
for this month. Both debts are already due .Which of the following statements is correct?
38.D owes C the following debts:6,000.00 due on June 12: 6,000.00 on June 15: 6,000.00 due on June 18; and a. Both debts are extinguished by legal compensation
6,000.00 due on b. Wilma may claim compensation but not Henry
20. All debts are unsecured except the debt due on June 20 which is secured by a pledge of DS diamond c. Henry may claim compensation
ring to C,By d. Neither may claim compensation
agreement , the benefit of the term on the 4 debts was made in favor of D. Assuming that D has 6,000.00
on June 18 45. D owes C 10,000.00 with G as guarantor. C, on other hand, owes D 8,000.00.Both debt are already due but
and is ready to pay C,which of the following statements is correct? D is insolvent .In this case
a. D may apply his payment of 6,000.00 to any of the debts due on June 12, June 15 and June 18 since they a. C may collect from G 10,000.00
are all b. C may collect from B 2,000.00 because the guarantor can set up compensation as regards what the
due as of June 8 creditor may
b. D may apply it only to the debt due on June 20 because it is the most burdensome to him owe the principal debtor
c.D must apply the payment proportionately to the debts due as of June18 at 2,000.00 each c. C may collect nothing from G because D is insolvent
d. D may apply the payment to any of the four debts d. C may collect from 8,000.00 from G

in application of payment, the more burdensome rule is NOT applicable. 46. D owes C 50,000.00. Subsequently, D proposed to C that T will assume his (Ds) debt. C accepted the
proposal of D.
39. The offer made by the debtor to pay his obligation to his creditor is known as: This substitution of debtor is known as
a. Consignation a. Expromission
b. Tender of the payment b. Delegacion
c. Application of payment c. Tradition
d. Dation of payment d. Dacion en pago

40. Consignation alone without any tender of payment is sufficient in the following cases, except: 47. Refers to the facts in No.46. Assume also that on due date, T could not pay because of his insolvency which
a. When the creditor is absent, unknown or does not appear at the place of payment was
b. When the title of the obligation has been lost in fact subsisting but was not known to D or of public knowledge at the time that D delegated his debt. In
c. When with just cause the creditor refuses to issue a receipt this case
d. When two or more persons claim the same right to collect a. C can revive Ds debt because Ts insolvency already existed at the time that D delegated his debt
b. C can revive Ds debt whether or not he (D) was aware of Ts insolvency since he (D) proposed
41. M owes P 10,000.00.The obligation is evidenced by a promissory note. Subsequently, P indorsed the note to the substitution
A, A to B c. C cannot hold D liable because his (Ds) obligation was extinguished when he was substituted by T.
B to C, and C back to M. The obligation of M is extinguish by: d. The novation is void because D did not take steps to determine the solvency of T when he (D) delegated
a. Compensation his debt
b.Confusion
c.Condonation 48. D obliged himself to give 5 grams of shabu to C. Later, the parties agreed that D would instead give to C 5
d.Consignation sacks of
rice. Which of the following statements is correct?
42. The condonation of the obligation to pay interest also results in the extinguishment of the principal a. The novation is void because the original obligation is void. Hence, C cannot demand the delivery of 5
obligation. sacks
a. Condonation of an obligation requires the acceptance of the debtor of rice from D.
b. Both are correct statements b. The novation is valid because the new obligation is valid. Hence, C cannot demand the delivery of 5 sacks
c. Both are incorrect statements
d. Only the second statement is corect of rice from D
c. The original obligation although void is validated by the new obligation .Hence; C can demand delivery of
43. One of the following is not requisite of legal compensation 5 sacks of
a. That each one of the obligors bound principally, and that he is at the same time a principal creditor of the rice from D
other d. The new obligation is only voidable because D had not yet performed the original obligation at the time
b. That the two debts be due of the
c. That both debts be liquidated and demandable novation. Accordingly, the new obligation is binding and C may demand the delivery of 5 sacks of rice
d. That the debts are payable at the same place from D
until the new obligation is annulled by a proper action in court.
 a. The obligation of D is demandable if C marries X on or before December 31, 2006
49. On July 1, 2006 D obliged himself to give C 50,000.00 if C will marry X on or before December 31, 2006. b. The obligation of D is extinguished if it is already January 1, 2007 and has not yet married X
The c. The obligation of D is extinguished on December 2, 2006 if X dies on the said date and C has not yet
condition of the obligation is a married X
a. positive condition d. The obligation is demandable if C marries X on January 1, 2007
b. negative condition
c. potestative condition
d. casual condition

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