OBLIGATIONS – DIAGNOSTICS EXERCISES

Test I – MULTIPLE CHOICE. Select the best answer by writing the letter of your
choice.
1. The following are the requisites of an obligation, except:
a. passive subject, debtor or obligator.
b. active subject, creditor, or oblige.
c. efficient cause.
d. demand.

2. Obligations may arise from any of the following, except:

a. contracts.
b. quasi-contracts.
c. law.
d. prestation.

3. It is the voluntary administration of the property of another without his consent.

a. Negotiorum gestio
b. Solutio indebiti
c. Quasi-delict
d. Contract

4. It is a wrong committed without any pre-existing relations between the parties.

a. Natural obligation
b. Quasi-delict
c. Quasi-contract
d. Crime

5. Unless the law or the situations of the parties require another standard of care, every
person obliged to give something is also obliged to take care of it with:
a. extra-ordinary diligence.
b. diligence of a father of a good family.
c. diligence of a good father of a family.
d. good diligence of a father of a family.

6. The creditor has a right that is enforceable against a definite passive subject. This right
is known as:
a. personal right.
b. real right.
c. natural right.
d. civil right.

7. It is a thing that is particularly designated or physically segregated from all others of

the same class.
 a. Generic thing
b. Indeterminate thing
c. Determinate thing
d. Real thing

8. One of the following is a determinate thing. Which is it?

a. a cow.
b. a horse.
c. a Toyota car with engine no. 12345, body no. 34890 and plate no. ABC 123.
d. a ring with diamond embellishment.

9. Demand must be made on the due date of the obligation in order for delay to exist in
one of the following cases. Which is it?
a. When it was stipulated by the parties that demand need not be made.
b. When the law provides that demand need not be made.
c. When the obligation does not indicate whether demand must be made or not
on due date.
d. When time is of the essence of the contract.

10. This refers to delay on the part of the creditor.

a. mora solvendi ex re
b. compensation morae
c. mora solvendi ex personae
d. mora accipiendi

11. There shall be no liability for loss to fortuitous events in one of the following case.
Which is it?
a. When the debtor delays.
b. When the parties so stipulated that there shall be liability even in case of loss due
to fortuitous events.
c. When the nature of the obligation requires the assumptions risks.
d. When the obligation is to deliver a determinate thing and there was no
stipulation as to the liability of the debtor in case of loss due to fortuitous
events.

12. The following are the remedies of the creditor to pursue his claims against the debtor,
except to:
a. pursue the property owned and in possession of the debtor.
b. exercise all the rights and bring all the actions of the debtor (accion subrogatoria).
c. impugn the acts which the debtor may have done to defraud his creditors (accion
pauliana).
d. compel the debtor to perform the service in obligations to do.
13. D borrowed P50,000.00 from C. C dies before he has collected the debt leaving S,
his son, as heir. Which of the following statements is correct?
a. S can collect from D although D and C did not agree that the credit right will
pass on to the heirs of C.
b. S cannot collect because the credit right is personal to C.
c. S can collect only if D and C agreed that the credit right will pass on the heirs of C.
d. S cannot collect because the law prohibits the transmissions of the credit right.

14. D is obliged to give C a specific car if C passes the CPA Licensure Examination. D’s
obligation is an example of:
a. a pure obligation.
b. an obligation with a suspensive condition.
c. an obligation with a resolutory condition.
d. an obligation with a period.

15. One of the following obligations is not immediately demandable.

a. pure obligation.
b. obligation with a resolutory condition.
c. obligation with an in diem period.
d. obligation with an ex die period.

16. One of the following obligations is a void obligation:

a. D is obliged to give C P5,000.00 if C does not go to the moon.
b. D is obliged to give C P5,000.00 if D goes to Baguio.
c. D is obliged to give C P5,000.00 if C goes to Baguio.
d. D is obliged to give C P5,000.00 if D wins first prize in the sweepstakes on a ticket
that he had already purchased.

17. D is obliged to give C P10,000.00 if X dies. This is an example of:

a. an obligation with a suspensive condition.
b. an obligation with a resolutory condition.
c. an obligation with a period.
d. a pure obligation.

18. When the debtor binds himself to pay when is means permit him to do so, the
obligation is:
a. an obligation with a resolutory condition.
b. a pure obligation.
c. an obligation with a suspensive condition.
d. an obligation with a suspensive period.

19. Whenever a period is designated in an obligation, the said period shall be presumed
to have been established for the benefit of:
 a. the debtor.
b. the creditor.
c. both the debtor and the creditor.
d. neither of the parties.

20. The debtor shall lose the right to make use of the period in the following cases, except
when he:
a. becomes insolvent.
b. violates any undertaking in consideration of which the creditor agreed to the period.
c. attempts to abscond.
d. does not furnish any guaranty or security to the creditor.

21. An obligation ceases to be alternative and becomes a simple obligation in the

following cases, except when:
a. the debtor has communicated his choice to the creditor.
b. the right of choice has been communicated to the debtor.
c. among the several prestations that are due only one is practicable.
d. three prestations are due but one of them is unlawful or impossible.

22. D is obliged to give C a specific watch, a specific ring, or a specific bracelet. The
parties agreed that C will have the right to choose the thing which will be given to him.
Before C could make his choice, the watch and the ring are lost through D's 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 ring 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. 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 plus damages.

23. D is obliged to give C a 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 after substitution, the obligation is
extinguished.
d. If the ring is lost through the debtor's fault after substitution, the debtor shall pay
damages.
24. A, B, C and D are obliged to give V, W, X, Y and Z P20,000.00.
a. V may collect from A P20,000.00.
b. V may collect from A P5,000.00.
c. V may collect from A P1,000.00.
d. V may collect from A P4,000.00.

25. A, B, C and D, joint debtors, are obliged to give V, W, X, Y and Z, solidary creditors,
P20,000.00.
a. V may collect from B P20,000.00.
b. V may collect from B P4,000.00.
c. V may collect from B P5,000.00.
d. V may collect from B P1,000.00.

26. A, B, C and D, solidary debtors, are obliged to give V, w X, Y and Z, joint creditors,
P20,000.00.
a. V may collect from C P20,000.00.
b. V may collect from C P4,000.00.
c. V may collect from C P5,000.00.
d. V may collect from C P1,000.00.

27. A, B, C and D, solidary debtors, are obliged to give V, w X, Y and Z, solidary creditors,
P20,000.00.
a. V may collect from D P20, 000.00.
b. V may collect from D P4,000.00.
c. V may collect from D P5,000.00
d. V may collect from D P1,000.00.

28. A, 25, B, 35, and C, 17, are solidary debtors of X in the amount of P9,000.00
a. X may collect from A P9,000.00.
b. X may collect from A P6,000.00.
c. X may collect from A P1,000.00.
d. X may collect nothing because the obligation is voidable, C being a minor.

29. The following obligations are divisible, except an obligation:

a. to give definite things.
b. which has for its object the execution of a certain number of days of work.
c. which has for its object the accomplishment of work by metrical units.
d. which by its nature is susceptible of partial performance.

30. In obligations with a penal clause, the creditor as a rule may recover from the debtor
in case of breach the following:
a. the penalty as agreed upon, plus damages and interest.
b. the penalty and damages.
 c. the penalty and interest.
d. only the penalty.

31. Consider the following statements:

I. The nullity of the principal obligation carries with nullity of the penal clause.
II. The nullity of the principal obligation does not carry with it the nullity of the penal
clause.
III. The nullity of the penal clause carries with it the it the nullity of the principal
obligation
IV. The nullity of the penal clause does not carry with it the nullity of the principal
obligation.
a. Statements I and III are true.
b. Statements I and IV are true.
c. Statements II and III are true.
d. Statements II and IV are true.

32. D borrowed from C P50,000.00. The obligation is secured by a chattel mortgage on

D's Toyota car. Subsequently, D paid C P20,000.00. Unknown to D, T, a third person,
pays C P50,000.00 believing that D still owed C such amount.
a. T can recover P50,000.00 from D. If D cannot pay, T can foreclose the mortgage
on D's Toyota car.
b. T can recover nothing from D because he paid C without the knowledge and
consent of D.
c. T can recover P30,000.00 from D. if D cannot pay, T can foreclose the mortgage
on D’s Toyota car.
d. T can recover P30,000.00 from D. If D cannot pay, T cannot foreclose the
mortgage on D’s Toyota car.

33. The following statements concerning payment by cession are true, except one. Which
is it?
a. The creditors become the owners of the 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 of the debtor’s properties.
c. The debtor must be insolvent.
d. Cession affects all the properties of the debtor except those exempt from execution.

34. D obtained from ABC Bank a loan of P12,000,000.00 payable at the end of 10 years.
Before maturity, an extraordinary inflation supervened causing the value of the debt to
rise to P5,000,000.00 on the date of maturity. On due date, B must pay XYZ Bank:
a. P12,000,000.00
b. P4,000,000.00
c. P36,000,000.00
 d. P3,000,000.00

35. B borrowed from XYZ Bank P2,000,000.00 payable at the end of 5 years. Before
maturity, an extraordinary deflation supervened causing the value of the debt to rise to
P5,000,000.00 on the date of maturity. On due date, B must pay XYZ Bank:
a. P2,000,000.00
b. P5,000,000.00
c. P800,000.00
d. P20,000,000.00

36. The money or currency which the debtor may compel the creditor to accept in payment
of a debt, whether public or private, is known as:
a. Notes payable to order
b. Legal tender
c. Bill of exchange.
d. Mercantile document

37. The delivery and transmission of ownership of a thing by the debtor to the creditor as
an accepted equivalent of performance is known ad:
a. Payment by cession
b. Dation in payment
c. Application of payment
d. Consignation

38. D owes C the following debts: P6,000.00 due on June 12; P6,000.00 due on June 15;
P6000.00 due on June 18; and P6,000.00 due on June 20. All debts are unsecured except
the debt due on June 20 which is secured by a pledge of D’s diamond ring to C. By
agreement, the benefit of the term on the 4 debts was granted to C. Assuming that D has
P6,000.00 on June 18 and is ready to pay C, which of the folowing statements is correct?
a. D may apply his payment of P6,000.00 to any of the debts due on June 12,
June 15, June 18 since they are all due as of June 18.
b. D may apply his payment only to the debt due on June 20 because it is the most
burdensome to him
c. D must apply the payment proportionately to the debts due as of June 18 at
P2,000.00 each
d. D may apply the payment to any of the four debts.

39. The offer made by the debtor to pay his obligation to his creditor is known as:
a. consignation
b. tender of payment
c. application of payment
d. dation in payment
40. Consignation alone without any tender of payment is sufficient in the following cases,
except:
a. when the creditor is absent or unknown or does not appear at the place of payment.
b. when the creditor presents the title to the obligation for collection.
c. when without just cause, the creditor refuses to give a receipt.
d. when two or more persons claim the same right to collect.

41. M owes P P10,000.00. The obligation is the evidenced by a promissory note.

Subsequently, P assigns the note to A, A to B, B to C and C back to M. The obligation of
M is extinguished by:
a. compensation
b. confusion
c. condonation
d. the obligation is not extinguished because there was no payment.

42. In order that condonation may extinguish an obligation involving a movable property
whose value exceed P5,000.00
a. It is sufficient that the condonation and the acceptance are in writing, even a
private one.
b. It is required that the condonation and the acceptance in a public instrument,
c. The delivery of the document evidencing the debt is sufficient since the property is
movable.
d. The condonation and the acceptance may be made orally.

43. One of the following is not a requisite of legal compensation. Which is it?
a. That each one of the obligors be bound principally and that he be at the same time
a principal creditor of the other.
b. That the two debts be due.
c. That both debts be liquidated and demandable.
d. That the debt are payable at the same place.

44. Henry, husband and Wilma, wife, are legally separated by order of the court which
decreed the legal separation, Henry is obliged to give a monthly support of P10,000.00
to Wilma payable within the first five days of the month. Wilma owes Henry P10,000.00
by way of business loan. On the other hand, Henry has not yet given Wilma’s support of
P10,000.00 for this month. Both debts are already due. Which of the following statements
is correct?
a. Both debts are extinguished by legal compensation because both are already due.
b. Wilma claim compensation but not Henry.
c. Henry may claim compensation but not Wilma.
d. Neither one may claim compensation because debt are not of the same kind.

45. D owes C P10,000.00 with G as guarantor. C, on the other hand, owes D P8,000.
Both debts are already due but D is insolvent. In this case-
a. C may collect from G P10,000.
 b. C may collect from G P2,000 because a guarantor can set up compensation
as regards what the creditors owes the principal debts.
c. C may collect nothing from G because D is insolvent.
d. C may collect P8,000 from G.

46. D borrowed P50,000 from C. Subsequently, D propose to C that T would assume his
(D’s) debt. C accepted the proposal of D. This substitution of debtor is known as –
a. expromision.
b. delegacion
c.tradition
d. dacion en pago

47. Refer to the facts in no.46. Assume also that on due date, T could not pay because
of his insolvency which was in fact but was not known to D or of public knowledge at the
time that D delegated his debt. In this case-
a. C can revive D’s debt because T’s insolvency was already existing at the time that
D delegated his debt.
b. C can revive D’s debt whether or not he (D) was aware of T’s insolvency since he
(D) proposed the substitution.
c. C cannot hold D liable because his (D’s) obligation was extinguished when
he was substituted by T.
d. The novation is void because D did not take steps to determine the solvency of T
when he (D) delegated his debt.

48. D obliged himself to give five grams of “shabu” to C. Later, the parties agreed that D
instead give to C five sacks of rice. Which of the following statements is correct?
a. The novation is void because the original obligation is void. Hence, C cannot
demand the delivery of five sacks of rice from D.
b. The novation is valid because the new obligation is valid. Hence, C can demand
the delivery of five sacks of rice from D.
c. The original obligation although void is validated by the new obligation. Hence, C
can demand the delivery of five sacks of rice from D.
d. The new obligation is only voidable because D had not yet performed the original
obligation at the time of the novation. Accordingly, the new obligation is binding and
C may demand the delivery of five sacks of rice from D until the new obligation is
annulled by a proper action in court.

49. On July 1, 2015, D obliged himself to give C P50,000.00 if C will marry X on or before
December 31, 2015. The condition of the obligation is a:
a. positive condition
b. negative condition
c. joint condition
d. possible condition

50. Refer to number 49. Which of the following statements is incorrect?

a. The obligation of D is demandable if C marries X on or before December 31, 2015.
 b. The obligation of D is extinguished if it is already January 1, 2016 and C has not
yet married X.
c. The obligation of D is extinguished on December 2, 2015 if X dies on the said date
and C has not yet married X.
d. The obligation is demandable if C marries X on January 1, 2016.

51. On July 1, 2015, D obliged himself to give C a specific car if C will not marry X on or
before December 31, 2015. The condition of the obligation is a:
a. positive condition.
b. negative condition.
c. divisible condition.
d. impossible condition.

52. Refer to No. 51. Which of the following statements is incorrect?

a. The obligation of D is demandable if C marries X on January 1, 2016.
b. The obligation of D is demandable on December 2, 2015 if X dies on the said date
and D has not yet married X.
c. The obligation of D is demandable if it is already January1, 2016 and has D has
not yet married X.
d. The obligation is demandable if C marries X on December 2, 2015.

53. D owes C P5,000.00. T, a third person and without any intention to be reimbursed
by D, paid the debt without the consent of D. C accepted the payment.
a. The payment did not extinguish the debt of D to C because it was made without
the consent of D.
b. The payment did not extinguish the debt because it was not made by D himself.
c. The payment is considered valid because it was accepted by the creditor.
d. The payment may be considered valid if T had the intention to be reimbursed.

54. A mode of extinguishing obligations up to their concurrent amount when two

persons are principal debtors and creditors of each other is called.
a. novation.
b. payment.
c. compensation.
d. merger.

55. D owes C P6,000.00. No date was stipulated by the parties.

a. C cannot require D to pay because there is no date for payment.
b. C can require D to pay at anytime.
c. D is not liable to C because the obligation is void there being no date of payment.
d. D is not required to pay unless C goes to court and asks the court to fix a period
for the payment.
56. Under a contract executed on November 1, 2015, D obliged himself to give a
specific horse to C on December 10, 2015. On December 8, 2015, C demanded the
delivery of the horse but D did not comply. The following day, the horse was struck by
lightning and died instantly.
a. The obligation of D is extinguished because the loss is due to fortuitous
event and D was not in default.
b. The obligation of D is not extinguished because D can deliver another horse.
c. The obligation of D is not extinguished because D was in default.
d. The obligation of D is not extinguished because the demand was not made on
due date.

57. Which of the following is not considered a conditional obligation?

a. D to pay C P5,000.00 as soon as D has the means
b. D to pay P5,000.00 if C marries Y.
c. D to pay C P5,000.00 if C tops the CPA Examinations.
D. D to pay C if X dies of malaria.

58. The distinction between merger and compensation is that in merger:

a. The two debts may be payable at difference places.
b. Two persons are in their own right debtors and creditors of each other.
c. The debtor and creditor may agree on the set-off of debts that are not yet due.
d. The debtor and the creditor refer to only one person.

59. The passage of time as a mode of acquiring or losing a right including the
extinguishment of an obligation is called:
a. remission.
b. novation.
c. prescription.
d. merger.

60. Legal compensation shall not be proper in three of the following cases. Which is the
exception?
a. Commodatum.
b. Civil liability arising from a criminal offense.
c. Gratuitous support.
d. Bank deposit.

61. Cecilia, the owner of a sarisari store, purchased several bags of “Dulcita” candy
worth P5,000.00 from Olga, an authorized dealer of the product. On due date, Cecilia,
who selss the candies at P1.00 each, tendered her payment to Olga consisting of 5,000
pieces of P1.00 coins.
a. Olga may refuse to accept the payment and demand that she be paid in
bills.
 b. Olga may not refuse to accept the payment because what Cecilia was offering as
payment is money circulated in the Philippines.
c. Cecilia may consign the payment in court if Olga refuses to accept it.
d. The tender made by Cecilia was valid because the P1.00 coins came from her
sales and she had plenty of them.

62. Dominico and Domingo are jointly and severally liable to Crispino for P100,000.00.
The obligation is due on June 30, 2015. On June 25, 2015, Domingo paid the whole
amount of the note to Crispino. If Domingo reimburses Dominico on July 15, 2015,
Dominico is entitled to receive from Domingo:
a. P50,000.00 plus interest from June 25 to July 15, 2015.
b. P50,000.00 plus interest from June 25 to June 30, 2015.
c. P50,000.00 plus interest from June 30 to July 15, 2015.
d. P50,000.00 with no interest because Dominico paid the note before due date.

63. One of the following statements does not pertain to dacion en pago. Which is it?
a. Ownership of the thing is transferred to the creditor.
b. The debtor must be insolvent.
c. It does not affect all the properties of the debtor.
d. It does not require plurality of creditors.

64. One of the following does not apply to payment by cession. Which is it?
a. Ownership of the debtor's properties is transferred to the creditor.
b. The debtor must be insolvent.
c. It affects all the properties of the debtor except those exempt from execution.
d. There are several creditors.

65 C. A, B and C are solidarily liable to X for P30,000.00. A pays X the whole amount
due. C, however, is insolvent.
a. A alone will bear the share of C who is insolvent since he (A) made the payment.
b. A can collect from B P10,000.00
c. A can collect from B P15,000.00
d. A can demand a refund of P10,000.00 from X pertaining to C's share since C is
insolvent.

66. Anna Almeda Belinda Bersola, and Claudia Cabrera executed the following
promissory note:
"I promise to pay Dolores Dominguez or order the sum of P30,000.00 on June 30,
2010.
(Sgd.) Anna Almeda
(Sgd.) Belinda Bersola
(Sgd.) Claudia Cabrera”
On June 30, 2010, Dolores Dominguez can collect from Anna Almeda:
 a. P10,000.00.
b. P30,000.00
c. P20,000.00
d. Nothing, because the note is void since it says “I promise” but was signed by three
persons.

67. One of the following is a valid obligation. Which is it?

a. D promised to give C P50,000.00 if C will not swim across the Pacific Ocean.
b. D promised to give C P50,000 00 if D goes to Tokyo.
c. D promised to give C P50,000.00 if C can fly to the moon.
d. D promised to give C P50,000.00 if C gives him 5 grams of marijuana.

68. An obligation where various prestations are due but the performance of all of them is
required in order to extinguish the obligation is known as:
a. alternative obligation
b. facultative obligation
c. conjunctive obligation
d. simple obligation

69. A B and C are solidary debtors of X in the amount of P9.000.00. Subsequently, X

renounced the share of A. A accepted the renunciation of his share. On due date, B paid
X P6,000.00. B demanded reimbursement from C but C is insolvent In this case:
a. B may demand the payment of P3,000.00 from A.
b. B may not demand any payment from A because the share of A had already been
renounced or condoned.
c. B may demand P1.500.00 from A representing A's share in C's insolvency.
d. B may demand from A P4,500 00 so that their sharing n the total debt is equal.

70. D is indebted to C for P20,000.00 which is due on June 10. C Owes D P15,000.00
which is due on June 5. On June 8, C assigned his credit rights to T. D gave his consent
to the assignment but did not reserve his right to the compensation. On June 10, how
much may T collect from D?
a. P20,000.00
b. P15 000.00
c. P5,000 00
d. Nothing

71. On May 1, 2010, D executed a written undertaking obliging himself to deliver 100
sacks of rice to C on May 31, 2010 On May 28, 2010, C demanded the delivery of 100
sacks of rice from D but D did not comply. The following day, a fire of undetermined origin
destroyed D's warehouse together with about 500 sacks of rice stored therein and from
which D intended to get 100 sacks of rice for delivery to C.
 a. D's obligation to deliver 100 sacks of rice to C is extinguished, the cause of the loss
being a fortuitous event.
b. D's obligation to deliver 100 sacks of rice, to C is not extinguished because
he can get 100 sacks of rice from other sources.
c. D's obligation to deliver 100 sacks of rice to C is not extinguished because D was
in default.
d. D's obligation is to pay damages because he was in default.

72. On June 1, 2009, Demetrio obtained a loan of P100.000.00 from Cornelio. The loan,
which is payable on or before June 1, 2010, is secured by a chattel mortgage on
Demetrio's brand new Toyota car with plate number XYZ 123. On February 1, 2010 while
Demetrio was opening the trunk of his car at the parking of a grocery store to place the
groceries he had just purchased, three unidentified men approached and took his car
gunpoint. He reported the carnapping to the authorities, but the car has not been
recovered.
a. Cornelio may demand immediate payment of the loan unless Demetrio gives
another security therefor.
b. Cornelio may demand payment only on June 1, 2010 because Demetrio has the
benefit of the period and the loss of the car was due to force majeure.
c. Cornelio may no longer demand payment since the loan was extinguished by
reason of the loss of the car due fortuitous event.
d. Cornelio may demand immediate payment even if Demetrio offers another security
because the car is determinate and could not be replaced.

73. The estate of X who died recently shows, among other documents/contracts, the
following:
I. A certificate from Harvard University scholarship to X. X was subjected to exhaustive
examinations and interviews before he was granted the scholarship. He was
supposed to start studying Harvard in 3 months' time.
II. Articles of partnership of XYZ Enterprise showing X as a general partner
III. A stock certificate of DEF Corporation showing X as the owner of 5,000 shares of
stock.
IV. A promissory note amounting to P100,000.00 executed by M in favor of X. The
note is due after 90 days.

Which of the rights of X arising from the said documents/contracts will be transmitted to
the heirs of X?
a. I and II
b. ll and III
c. III and IV
d. I and IV

74. The following statements pertain to either payment by cession or dacion en pago.
 I. The debtor is insolvent.
II. Ownership of the thing/s is transferred to the creditor/s.
III. Plurality of creditors is required.
IV. Obligations are totally extinguished as a rule.

a. Statements I and IV pertain to payment by cession.

b. Statements I and III pertain to dacion en pago.
c. Statements II and IV pertain to dacion en pago.
d. Statements III and IV pertain to payment by cession.

75. The return of what has been paid by mistake is known as:
a. solutio indebiti
b. negotiorum gestio
c. quasi-delict
d. natural obligation

Items 76, 77, and 78 are based on the following information:

Dolores borrowed P15,000.00 from Consuelo. On due date, Dolores was not able
to pay but she promised to give Consuelo a specific ring, a specific bracelet, or a specific
necklace, in payment of the debt. Consuelo accepted the offer of Dolores.

76. What kind of obligation is the new obligation of Dolores?

a. Facultative obligation
b. Compound obligation
c. Alternative obligation
d. Simple obligation

77. How was the obligation of Dolores to pay P15,000.00 extinguished?

a. By compensation
b. By novation
c. By confusion
d. By condonation

78. Assume that before Dolores could deliver any of the ring, bracelet or necklace, the
ring and the bracelet were lost successively through the fault of Dolores. In this case:
a. Consuelo may demand the payment of the price of the ring or the price of the
bracelet plus damages, or the delivery of the necklace
b. Dolores may deliver the necklace to Consuelo without any obligation to pay
damages
c. Dolores may deliver the necklace to Consuelo with the obligation to pay damages
because the ring and the necklace were lost through her fault.
d. Consuelo may demand the payment of the price of the bracelet which was the last
item that was lost, plus damages
79. D obtained a loan of P100,000.00 from C. D used the amount as a placement fee for
a job in the Middle East. The loan agreement showed that the loan was payable within
one year with interest at 6% per annum. However, there was no provision saying that the
rights and obligations of the parties would be transmitted to their heirs or successors-in-
interest. Before maturity, D died leaving his son as heir. Which of the following is correct?
a. C cannot collect from S because no mention was made in the agreement between
D and C that the rights and obligations of the parties would be transmitted to their
heirs.
b. C can collect from S although no mention was made in the agreement that
rights and obligations would be transmitted to the heirs.
c. C cannot collect from S because the obligation is personal to D.
d. C cannot collect from S because the law prohibits the transmission of the obligation.

80. Hilario, husband, and Wynona, wife, are legally separated. By order of the court which
decreed the legal separation, Hilario is obliged to give a monthly support of P20,000.00
to Wynona payable in advance within the first five days of the month. Wynona owes
Hilario P20,000.00 by way of loan. On the other hand, Hilario has not yet given Wynona’s
support of P20,000.00 for the preceding month and another P20,000.00 for the present
month. All the debts are already due. Based on the foregoing facts, which of the following
statements is incorrect?
a. If Wynona demands her support for the preceding month, Hilario may set up
compensation as regards the loan that Wynona owes him.
b. If Wynona demands her support for the current month, Hilario may claim
compensation as regards the loan that Wynona owes him.
c. If Hilario demands the payment of the loan, Wynona may set up compensation as
regards her support for the preceding month that Hilario owes her.
d. If Hilario demands payment of the loan, Wynona may set up compensation as
regards her support for the current month that Hilario owes her.

81. One of the following is not demandable at once. Which is it?

a. D to give his car to C. No date was fixed by the parties for the date of the delivery.
b. D to give his car to C until C completes his course in BS Accountancy.
c. D to give his car to C until X dies.
d. D to give C his car should C enroll in BS Accountancy.

82. D owes C the following debts: P6,000.00 due on January 1; P6,000.00 due on January
15; P6,000.00 due on January 31; P6,000.00 due on February 15; P6,000.00 due on
February 28; and P6,000.00 due on March 15. All the debts are unsecured except the
one on February 28. The parties stipulated that C may demand payment on or before due
date of each debt. Assume that today is February 16. D, however, has not yet paid any
of the debts. He has in possession P6,000.00 which he intends to pay C.
 a. D may apply the payment to the debt due on February 28 because it is the most
burdensome to him.
b. D may apply the payment to any of the five unsecured debts.
c. D may apply the payment to any of the four debts that have become due as
of today, February 16.
d. D may apply the payment to all of the debts that have become due as of today,
February 16, proportionately at P1,500.00 each.

83. D made a promise to give a ring to C. Before D could deliver a ring to C, C borrowed
D’s ring. After a week, D demanded the return of the ring that he had lent to C. c refused
to return the ring claiming that there was compensation between his obligation to return
the ring of D and D’s obligation to give him a ring. Based on the foregoing facts, which of
the following statements is incorrect?
a. C entitled to claim compensation.
b. C is not entitled to claim compensation.
c. D may oppose the compensation being claimed by C.
d. Only D may claim the compensation should C demand the delivery of a ring from
him (D).

84. Maila made a non-negotiable promissory note with Pia as payee. Pia assigned the
note to Aiko, Aiko signed the note to Bea, Bea assigned the not to Carmina, Carmina
signed the note to Helen, and Helen assigned it back to Maila.
a. Maila’s obligation is extinguished by condonation.
b. Maila’s obligation is extinguished by confusion.
c. Maila’s obligation is extinguished by compensation.
d. Maila’s obligation is not extinguished because the note is not negotiable.

85. Lafuente is a lessee of Oberon’s building. Under the lease contract, Lafuente must
pay the monthly rental of P10,000.00 to Oberon at Oberon’s office within the first 5 days
of the month in advance. On the sixth month of the lease, Lafuente went to Oberon’s
office to pay the rental but he was told by Elcano, an employee of Oberon, that Oberon
was confined at the hospital. Elcano told Lafuente that he could entrust the payment to
him. Santiago, a son of Oberon, who happened to be around, however, demanded that
Lafuente must pay to him claiming that as Oberon’s son, he was the one authorized to
receive the payment. Given the situation where you do not know to whom you will give
your payment, which of the following mode of payment would you avail yourself of if you
were Lafuente?
a. Dacion en pago
b. Payment by cession
c. Consignation
d. Application of payment
86. D promised to give C 10 sacks of rice when X, C’s father, dies. The obligation of D to
C s:
a. An obligation with a suspensive condition.
b. An obligation with a resolutory condition.
c. An obligation with a period.
d. A pure obligation.

87. D bought a plane ticket for Hong Kong from Wings Travel Company. Later, however,
D cancelled his flight to Hong Kong because of the SARS epidemic in the place. Upon
being informed of the cancellation, Wings Travel told D that D could get the refund of his
plane ticket within two days. In the meantime, D thought of going instead to Australia so
he called Wings Travel to send him a ticket for Brisbane promising to pay the cost of the
ticket in two days. Assuming that the refund due to D for his unused plane ticket to Hong
Kong is of the same amount as the cost of his plane ticket to Australia, D two days later
need not pay Wings Travel by reason of:
a. Confusion.
b. Novation.
c. Compensation.
d. Condonation.

88. On a certain year, D was obliged under a contract executed on March 1 to deliver an
agricultural land to C on April 1. D, however, actually delivered the land and the fruits
thereof to C on May 1. C had the right to the fruits of the agricultural land beginning on:
a. March 1
b. April 1
c. May 1
d. The period should be fixed by the court so that it can be determined when C is
entitled to the fruits.

89. Refer to the foregoing number. C became the owner of the agricultural land and the
fruits thereof on:
a. March 1
b. April 1
c. May 1
d. The period should be fixed by the court so that it can be determined when C actually
became the owner of agricultural land and its fruits.

90. The right of C before the delivery, on one hand, and his right after the delivery, on the
other hand, of the agricultural land and its fruits, to him are referred to as:
a. Personal right and real right, respectively.
b. Real right and personal right, respectively.
c. Both are considered a personal right.
d. Botch are considered a real right
91. Assuming that in No. 88, D did not deliver the land and its fruits to C. Instead, he
delivered the same to X, who was in good faith when he acquired the land and its fruits,
on April 30
a. X is the rightful owner of the land
b. C is the rightful owner of the land
c. C has a right of action against X
d. C cannot ask for damages against D

92. Which of the following is not a proper remedy for the creditor
a. to compel the debtor to make the delivery, if the obligation is to deliver a determinate
thing
b. to ask that the obligation be complied with at the expense of the debtor, if the
obligation is to deliver a generic thing
c. to compel the debtor to perform the obligation, if the obligation is an
obligation to do.
d. to ask the debtor that what has been done be undone, if the obligation is an
obligation not to do

93. The delivery to the creditor of mercantile documents such as the checks shall produce
the effect of payment
a. upon the delivery
b. when they have been cashed
c. when throught the fault of the debtor they have been impaired
d. when they are deposited in the bank

94. Which of the following statements concerning delay is incorrect?

a. there is no delay in obligations not to do
b. Delay, as a rule, exists, when the debtor does not perform his obligation on
the date it is due.
c. Demand, as a rule, is required, in order for delay to exist
d. When time is of the essence of the contract, delay on the part of the debtor exists
despite the absence of demand

95. When the debtor and the creditor agree to a dacion en pago (transfer of ownership of
property to the creditor to settle a monetary obligation) before such transfer of ownership,
there is actually a
a. compensation
b. confusion
c. condonation
d. novation

96. The delivery of mercantile documents such as checks will produce the effect of
payment
a. when through the fault of the creditor they have been impaired
b. upon delivery of the mercantile document
c. when they are certified by the bank
 d. when they are presented to the bank for payment

97. XYZ is a cooperative store. On July 1, 2014, it paid the Government of the City of
Manila certain taxes believing that it owed the same. After six months, XYZ learned that
it was not subject to the said taxes. Accordingly, it sought to recover the said taxes it
previously paid. The obligation of the Government of the City of Manila to return the said
taxes paid is based on:
a. negotiorum gestio
b. solution indebiti
c. quasi-delict
d. the Government is exempt from giving tax refunds

98. S sold 100 bottles of imported “Fundador” brandy to B who paid immediately the price
thereof amounting to P20,000.00. S promised to deliver the brandy to B within one week
from their agreement. On the other agreed date of delivery, S delivered to B 100 bottles
to fake “Fundador” brandy. The contract between S and B is:
a. voidable
b. void
c. valid
d. rescissible

99. D obtained a loan from C amounting to P60,000/00 which is payable in 10 equal

monthly installments. The loan bears interest of 1% per month which D agreed to give to
T, a student whom C is sending to school. To secure the loan, D executed a chattel
mortgage on his car. Although D has been paying the monthly interest to T, D could not
pay any of the installments due. In view thereof, D proposed and C accepted that D should
give instead a diamond ring to C in place of the loan of P50,000.00 within 2 months from
their new agreement. T, however, was not notified of the new obligation. Based on the
foregoing facts, which of the following statements is incorrect:
a. D’s obligation to give C P50,000.00 is extinguished by novation
b. The accessory contract of chattel mortgage is extinguished by the new agreement
between D and C
c. T is a party to the original agreement between D and C
d. The new contract did not extinguished D’s liability to pay interest to T.

100. Alternative obligation and facultative obligation are similar in which of the following
consequences
a. the right of choice may be given either to the debtor or creditor
b. several prestations are due
c. only one prestation is due but the debtor may render in substitution
d. the obligation becomes a simple obligation once the choice of the prestation
is made and communicated

101. D borrowed P5,000.00 from C. The obligation is payable in full after 30 days. IN
which of the following cases is D justified in making a consignation of his payment in
court?
a. If C refuses to accept the payment in the form of check which is certified by the bank
to be supported by sufficient funds.
b. If C refuses to accept the payment consisting of 5,000 pieces of P1.00 coins.
c. If C refuses to accept the first installment payment in the form of a P1,000.00 bill, D
promising to pay the balance of the debt in 4 equal monthly installments.
d. If C refuses to accept the payment consisting of 250 pieces of P20.00 bill.