QUESTIONS FOR OBLICON

1. A borrowed P1,000,000 from a bank, secured by a mortgage on his land. Without his
consent, his friend B paid the whole loan. Since A benefited from the payment, can B
compel the bank to subrogate him in its right as mortgagee of A's land?
a) No, but the bank can foreclose and pay B back.
b) No, since B paid for A’s loan without his approval.
c) Yes, since it is but right that B be able to get back his money and, if not, to foreclose
the mortgage in the manner of the bank.
d) Yes, since a change of creditor took place by novation with the bank’s consent.
2. O owed L P1,000 due on October 1, 2017 but failed to pay her on due date. L sent a
demand letter to O giving her 5 days from receipt within which to pay. Two days after
receipt of the letter, O personally offered to pay L in manager's check but the latter
refused to accept the same. The 5 days lapsed. May O’s obligation be considered
extinguished?
a) Yes, since L’s refusal of the manager’s check, which is presumed funded, amounts to a
satisfaction of the obligation.
b) No, since a manager’s check is not considered legal tender in the Philippines.
c) Yes, since O tendered payment of the full amount due.
d) No, since tender of payment even in cash, if refused, will not discharge the
obligation without proper consignation in court.
3. This special form of payment is the conveyance of the ownership of a thing as accepted
equivalent of performance.
a) Application of payment
b) Tender of Payment and Consignation
c) Dacion en pago
d) Payment by cession

4. Where a property is alienated to the creditor in satisfaction of a debt in money.

A. Dation in payment
B. Payment by cession
C. Consignation
D. Application of payment
5. The act of offering the creditor what is due him together with a demand that the
creditor accept the same.
A. Application of payment B. Tender of payment

C. Datio in solutum D. Cession

6. Where a debtor transfers all his properties not subject to execution in favor of his
creditors so that the latter may sell them and thus apply the proceeds to their credits.
A. Dation in payment C. Application of payment

B. Cession D. Consignation

7. The act of depositing the thing due with the court or judicial authorities whenever the
creditor cannot accept or refuses to accept payment.
A. Tender of payment C. Application of payment
B. Consignation D. Datio in solutum

8. The meeting in one person of the qualities of creditor and debtor with respect to the
same obligation.
A. Confusion C. Novation
B. Compensation D. Condonation

9. When two persons on their own right are creditors and debtors of each other
A. Confusion C. Novation
B. Compensation D. Condonation

10. Compensation cannot take place, except

A. When one debt arises from the obligations of a depositary.
B. When one debt arises from the obligations of a bailee in commodatum.
C. When one debt arises because of a claim for support due to gratuitous title.
D. When one debt arises from a bank deposit.

11. The substitution or change of an obligation by another, which extinguishes or modifies

the first
A. Confusion C. Novation
B. Compensation D. Consignation

12. Upon the proposal of a third person, a new debtor substituted the original debtor
without the latter’s consent. The creditor accepted the substitution. Later, however, the
new debtor became insolvent and defaulted in his obligation. What is the effect of the
new debtor’s default upon the original debtor?

a) The original debtor is freed of liability since novation took place and this relieved
him of his obligation.

b) The original debtor shall pay the obligation with recourse to the new debtor.

c) The original debtor remains liable since he gave no consent to the substitution.

d) The original debtor shall pay or perform 50% of the obligation to avoid unjust
enrichment on his part.
 13. X obliged himself to give Y a specific car to be delivered on May 1, 2017. There was no
delivery until May 15, 2017 when the garage of the car collapsed due to a magnitude 9
earthquake. As such, the car was totally damaged. After the car was destroyed and lost,
is X still liable?

a) No. Even if X was already in default he could argue impossibility of performance.

b) Yes. The obligation to deliver the car is converted to payment of its equivalent value
because X is in legal delay.

c) No. There was no demand by Y to deliver the car and the specific object was lost
due to fortuitous event. The obligation then is extinguished.

d) Yes. The contract is perfected.

14. A obtained a loan from B bank. The loan was embodied in several promissory notes. As
security the borrower executed a chattel mortgage on his standing crops. Said crops were
however subsequently destroyed by typhoon “Yolanda”. Is A still liable for the loan despite
the destruction of the crops by a fortuitous event?

1st Answer - Yes, the obligation of A was to deliver a generic thing – money.
2nd Answer – No, the obligation was to deliver determinate things – the standing crops.
A. True; true C. False; true
D. False; false B. True; false
15. All of the following are requisites of Payment by Cession except one.
A. Plurality of Debts
B. Partial or relative insolvency of the Debtor
C. Thing delivered is considered as equivalent of performance
D. Acceptance of cession by creditors
16. The following are exceptions regarding the effect of payment to third person, which is
untrue?
A. Provided that it is redounded to the benefit of the obligee
B. If after the payment, the third person acquires the creditor’s rights
C. If the passive subject ratifies the payment to the third person
D. If by the creditor’s conduct, the debtor has been led to believe that the payment is
upon the authority of the third person
17. Which of the following does not show extinguishment of obligation?
A. Death of the Creditor
B. Fortuitous Events
C. Payment
D. Compensation
18. The action which the creditor may exercise in the place of his debtor in order to
preserve or recover the property lost or transferred so that he can satisfy his own credit
is called:
a) Accion Pauliana
b) Pursuing the leviable properties of the debtor
c) Accion subrogatoria
d) Accion interdictal.

19. Which of the following is not onerous debt?

A. Oldest Debt with Interest C. A secured debt
B. Interest Bearing note D. Recently Acquired Debt without Interest
20. The following are requisites of Dacion en pago except
A. One Creditor
B. Debtor not necessarily in state of financial difficulty
C. Creditor is not the owner of the properties
D. Does not involve all the properties of the debtor
21. When will the loss of the thing due not extinguish obligation?
A. When the stipulation provides C. obligation is to deliver a determinate thing
B. When the law provides D. requires assumption of risk
22. The following are valid requisites of consignation
A. Evidence of valid debt
B. Consignation of the thing or sum due
C. Tender of payment by the debtor
D. Previous notice of consignation
23. The following are true regarding Judicial costs
A. Paid by the losing party
B. The costs may not be divided to the parties
C. Are statutory amounts allowed to a party to an action for his expenses incurred
D. Costs are allowed against the government
24. It is the rule adopted from American Law
A. Article 1234 C. Article 1233
B. Article 1156 D. Article 1157
25. The following are the persons whom the creditor must accept payment except
A. Third person who has no interest in the obligation C. The Debtor
B. Guarantor D. A third person stipulated in the contract
26. This article embodies the idea that nobody should be compelled to accept generosity of
another
A. Article 1160 B. Article 1170 C. Article 1238 D. Article 1246
27. This article governs the rule of medium quality
A. 1230
B. 1234
C. 1240
D. 1246
28. Which law governs dacion en pago?
A. Divine law
B. Law of Sales
C. Criminal Law
D. Taxation Law
29. This article governs the extrajudicial expenses
A. 1248
B. 1246
C. 1247
D. 1245
30. Where is the Place an obligation shall not be paid
A. Depends on the stipulation of the contract
B. In case of Specific thing, the place where the thing is located
C. The place of the Debtor
D. In case of generic thing, the place where the obligee is located.