Which essential element of an obligation refers to the party who has the right to demand performance

of the obligation?

b. Active subject

If the debtor fails to perform his obligation in an obligation to deliver a generic thing, the creditor, as a
remedy, may ask the obligation to be complied with at the expense of the debtor and demand damages.

True

It pertains to the totality of the norms of good and right conduct, growing out of the collective sense of
right and wrong of every community.

b. Moral law

Until such time that the thing and its fruits have been delivered to the creditor, he merely has a personal
right over it.

True

Negotiorum gestio refers to the voluntary administration of the property, business, or affairs of another
with his consent or authority.

False

Which essential element of an obligation refers to the party who is obliged to perform the obligation?

b. Passive subject

If the debtor fails to perform his obligation in an obligation to do, the creditor, as a remedy, may compel
the debtor to do so and demand damages.

False

This source of obligation pertains to certain lawful, voluntary and unilateral acts giving rise to a juridical
relation to the end that no one shall be unjustly enriched at the expense of another

b. Quasi-contract

Unless the law or agreement of the parties requires another standard of care, the diligence of a good
father of a family must be observed in an obligation to give a determinate thing.

True

The following are examples of an efficient cause of an obligation, except

d. Natural obligation

Negligence or culpa which results to civil liability arising from quasi-delict is also known as:

a. Culpa aquiliana
In a negotiorum gestio, the owner of the business or property shall reimburse the gestor or officious
manager for the necessary and useful expenses incurred and for the damages the latter may have
suffered in the performance of his duties.

True

In an obligation, the active subject is also called the creditor or obligee.

True

This kind of quasi-contract arises from payment by of an obligation which was not due at the time
it was paid.

d. Solution Indebiti

For an obligation to exist, there must be a demand from the active subject or creditor.

False

Unless the law or the stipulation of the parties require another standard of care, every person obliged to
give something is also obliged to care of it with:

a. Diligence of a good father of a family

What is the obligation of the owner of the property in a quasi-contract of negotorium gestio?

d. To reimburse the gestor or the officious manager for necessary and useful expenses incurred during
the administration

This source obligation pertains to acts or omissions that cause damage to another, there being fault or
negligence but without any pre-existing contractual relation between parties

c. Quasi-delict

Which type of compound obligation is one where several prestations are due but the complete
performance of one of them is sufficient to extinguish the obligation?

a. Alternative obligation

A period that depends upon the will of the debtor authorizes the court to fix its duration.

True

A period that depends upon the will of the debtor authorizes the court to fix its duration.

True

Partial performance of a divisible obligation shall not be allowed.

False
In a facultative obligation wherein the principal obligation is void or impossible, the debtor is not
required to give the substitute.

True

Which type of obligation with only one prestation?

b. Simple obligation

A condition that depends upon chance or upon the will of a person other than the creditor or debtor
shall be void.

False

A potestative condition that depends upon the will of the debtor shall be void.

False

In a conditional obligation with impossible condition, both the obligation and the condition shall be void.

True

Which type obligation is one which provides for a greater liability on the part of the debtor in case of
non-compliance

b. Obligation with a penal clause

The improvement of the thing by nature or time in an obligation with a suspensive condition shall
_______.

d. Inure to the benefit of the creditor

When the obligation is one with a suspensive condition and its subject matter is a determinate thing,
which of the following is not an effect of the loss of such thing?

b. If the loss of the thing is with debtor's fault, the obligation is rescinded with damages.

To whom does the right to choose prestation belongs in an alternative obligation?

a. Debtor, unless expressly given to the creditor

Pedro is obliged to give Juan a specific watch, a specific ring, or a specific bracelet. The parties agreed
that Juan will have the right to choose the thing which will be given to him. Before Juan can make his
choice, the watch and the ring are lost through Pedro's fault, successively. What is the right of Juan?

a. Juan may choose the delivery to him of the bracelet, or the value of watch or ring, plus damages.

Jack is obliged to give Jill Php 100,000.00 if Jeremy graduates from college. This obligation is NOT

a. An obligation with a potestative condition

What is the effect of an obligation with a divisible condition, and one of the conditions is an impossible
or unlawful.

c. The part thereof which is not affected by such impossible or unlawful conditional shall be valid
In case of loss of a determinate thing before the fulfillment of the suspensive condition without the
debtor's fault, the debtor is obliged to pay damages.

False

The effect of the fulfillment of the suspensive condition retroacts to the day of the constitution of the
obligation.

True

The creditor may not demand payment when the guaranties or securities provided by the debtor
disappeared through a fortuitous event.

False

The nullity of the penal clause in an obligation carries with it the nullity of the principal obligation.

False

As a rule, the creditor may demand fulfillment of the obligation and the penalty at the same time.

False

Using the phrase "jointly and severally" implies a joint obligation.

True

When there are two or more debtors and/or two or more creditors in one and the same obligation, the
obligation is presumed to be a solidary obligation.

False

Solidarity exists even though the creditors and the debtors may not be bound by the same periods and
conditions.

True

Which of the following does not entail a solidary obligation?

c. As a general rule, the concurrence of two or more debtors and/or creditors in one and the same
obligation

An obligation to work for one year (such as employment contract) is classified as a divisible obligation.

True

Which of the following phrases in an obligation connotes joint obligation?

a. Proportionately

Which of the following obligations is not deemed as divisible?

c. Obligation to give definite things and those not susceptible to partial performance
Which of the following cases wherein the court may not reduce the penalty stipulated?

d. When there has been no performance by the debtor and the penalty is just and equitable

A solidarity on the part of the creditors is called active solidarity.

True

A, B, and C (solidary debtors) are obliged to give X, Y, and Z (solidary creditors) the amount of 15,000.00.
Z then collected 15,000.00 from A. How much may A collect each from B and C?

b. 5,000.00

This form of extinguishment of obligations pertains to the gratuitous abandonment by the creditor of his
right. This also means the forgiveness of an indebtedness

b. Condonation or remission

Confusion is a form of extinguishment of obligations pertains to when two persons, in their own right,
are debtors and creditors of each other.

False

This is a special form of payment pertains to when there is a designation of the debt to which payment
shall be applied, when the debtor owes several debts in favor of the same creditor

a. Application of payment

This is a special form of payment where the ownership of property is transferred to his creditor to pay a
debt in money

b. Dation in payment

A owes B 3,000.00. The debt is evidenced by a promissory note. B informed A that he will no longer
collect the debt and delivers the promissory note to A. A accepts B's generosity. A's obligation is
extinguished by:

a. Remission

This refers to the act of debtor of offering to his creditor what is due to him

a. Tender of payment

Forgiveness of an indebtedness is a form of donation by the creditor to the debtor.

True

Remission not in any form of writing need not be accompanied by simultaneous delivery if the value of
the thing is less than 5,000.00.

False

This form of extinguishment of obligation occurs when there has been a performance of suchSelect one:

a. Payment or performance
This form of extinguishment of obligations pertains to when two persons, in their own right, are debtors
and creditors of each other.

d. Compensation

This refers to the act of depositing the sum or thing due with the judicial authorities whenever the
creditor refuses, without just cause, to accept the same or in the cases when the creditor cannot accept
it

a. Consignation

The parties may not stipulate that the payment shall be made in currency other than Philippine legal
tender at the time of payment.

False

This form of novation pertains to when a third person

initiates the substitution of the debtor by assuming the obligation, even without the knowledge of
against the will of the debtor

d. Expromission

This form of novation pertains to when the credit or the rights of the creditor is transferred to a third
person.

d. Subrogation

In dation of payment, plularity of creditors is not required.

As a general rule, payment to an unauthorized third person is not valid.

True

Who shall determine whether the partial loss of the object is so important to extinguish the obligation
under the circumstances?

d. The court

Tender of payment by the debtor extinguishes the obligation.

False

To be valid, when shall condonation or remission, together with the acceptance, be embodied in a
public instrument?

b. When the remission involves an immovable property

Which of the following is not an effect if the loss of the thing due is caused by a third person

c. The obligation of the debtor is not extinguished

Contracts of adhesion refers to those drafted only by one of the parties.

True
In unilateral contracts, only one of the parties is obliged to give or do something.

True

An insurance contract is a form of an aleatory contract.

True

This classification of contracts refers to those that are perfected by mere consent (such as contract of
sale and lease)

d. Consensual

This principle states that the contract takes effect only between the parties, their assigns and heirs,
except where the rights and obligations are not transmissible by law, stipulation, or by nature.

b. Relativity of contracts

This clarification of contracts refers to those that must be in the form provided by the law for their
perfection (such as certain donations).

c. Formal or Solemn

The five limitations of the freedom to enter into a contract are: law, morals, good customs, public order,
and public policy.

True

This classification of contracts refers to those where the cause is the service or benefit remunerated.

a. Remuneratory

This classification of contracts refers to those where there is an exchange of valuable considerations
(such as sale and barter).

d. Onerous

All contracts are perfected by mere consent.

False

Executory contracts refer to those that are already performed.

False

The contracting parties may establish stipulations, clauses, terms and conditions as they may deem
convenient provided that they are not contrary to law, morals good customs, public order or policy.

True

Contracts bind both parties; its validity or compliance cannot be left to the will of one of them.

True
This classification of contracts refers to those where the parties give equivalent values (such as sale and
barter); hence, there is real fulfillment

d. Commutative

This principle states that the contract must bind both contracting parties; its validity or compliance
cannot be left to the will of one of them

b. Mutuality of contracts

This stage of a contract is the point when there is a meeting of minds between the parties on a definite
subject matter and valid cause

b. Perfection or birth

This nominate contract means "I give that you may do"

a. Do ut facias

This refers to contracts that can stand by itself

c. Principal

This refers to contracts which serves as a means by which other contracts may be entered into

a. Preparatory

The stages of a contract according to the order of their occurrences are:

c. Conception, birth and consummation

An indivisible obligation does not necessarily imply solidarity of the parties in an obligation

True

This type of contracts refers to those which have a name under the law

d. Nominate

An offer becomes ineffective upon death, civil interdiction, insanity or insolvency of:

a. Either party

The contracting parties may establish stipulations, clauses, terms and conditions as they may deem
convenient even if they are contrary to law, morals good customs, public order or policy.

False

The nullity of the principal obligation carries with it the nullity of the penal clause in the obligation.

True

In bilateral contracts, both parties are obliged to give or do something.

True
Which of the following is not one of the requisites of novation to extinguish an obligation?

a. There must be a previous void obligation

An obligation to work for one year (such as employment contract) is classified as an indivisible
obligation.

False

This nominate contract means "I do that you may do"

d. Facio ut facias

Which of the following is not one of the requisites of application of payment to extinguish an obligation?

c. The debts are not yet due

Contracts take effect only between the parties, their assigns and heirs, even when the rights and
obligations are not transmissible.

False

Which of the following is not one of the requisites of tender of payment and consignation to extinguish
an obligation?

d. The creditor refuses, with just cause, to receive the payment

A, B and C entered into a contract of partnership to practice their profession. What kind of contract does
this fall under?

a. Preparatory

A, B, and C (solidary debtors) are obliged to give X, Y, and Z (joint creditors) the amount of 15,000.00.
Which of the following statement is false?

a. Y may collect the whole amount of 15,000.00 from A, B or C

To be valid, when shall condonation or remission and the acceptance, of a property valued at above
5,000.00 be in writing (public or private)?

d. When the remission involves a movable or personal property

A, B, and C (joint debtors) are obliged to give X, Y, and Z (solidary creditors) the amount of 15,000.00.
Which of the following statement is false?

c. B may be held liable for the whole amount of 15,000.00

Which of the following is the last stage of a contract?

b. Consummation

Which of the following is not one of the requisites of compensation to extinguish an obligation

c. That at least one of the debts is due, liquidated and demanded

Real contracts are those contracts that must be in the form provided by law.

False

Which of the following is not a special form of payment?

b. Partial payment

Unless there is a stipulation to the contrary, the creditor may not collect penalty together with damages
and interests in case of non-compliance by the debtor.

True

A party cannot renounce a contract unilaterally once he has entered into it. This is consistent with the
principle of:

d. Mutuality of contracts

D, E, and F (debtors) are jointly obliged to give J,K, and L (creditors) the amount of 36,000.00. How much
can X collect from A?

c. 4,000.00

John is obliged to give Jacob his iPhone. In case John does not comply, he shall pay the value of the
iPhone. Which kind of obligation is this?

d. Obligation with a penal clause

Violence committed by a third person who did not take part in the contract may still cause the consent
to be vitiated.

True

Acceptance made by letter does not bind the offerer except from the time it came to his knowledge.

True

Advertisement for bidders are merely invitations to make proposals and the advertiser is not bound to
accept the highest or lowest bidder, unless the contrary appears.

True

What is the effect if the person employing violence or physical coercion that causes the consent
obtained to be vitiated is not one of the contracting parties, i.e., a third person?

b. The contract is voidable

Accidental elements of a contract are presumed to bind the parties unless set aside or suppressed by
them.

False

These are the elements of a contract without which there will be no a contract

b. Essential elements
It is the essential reason why a party enters into a contract

c. Cause

Terms of payment (such as annually, monthly, etc.) in a contract falls under what kind of elements of a
contract?

a. Accidental elements

Warranty against hidden defects is an essential element in a sale contract.

False

Which of the following may not be an object of a contract?

c. Things outside the commerce of men

A contract with an illegal cause is void.

True

If an offer made through an agent is accepted from the time it is communicated to the principal.

True

Jason signed the deed of sale of his house to Joshua because the Joshua twisted and threatened to
break his arm if Jason refused to sign the document. Which of the following is true?

c. The contract is voidable because the consent is vitiated by violence or physical coercion

Which of the following is the object of a remuneratory contract?

c. The service or benefit already provided

Which of the following is not true regarding an offer?

a. Business advertisements such as television commercials, classified ads, billboards, and brochures are
considered as an offer

Warranty against hidden defects in a contract falls under what kind of elements of a contract?

b. Natural elements

Consent of the contracting parties falls under what kind of elements of a contract?

a. Essential elements

An example of an accidental element is a stipulation as to where the payment is to be paid.

True

Emancipation takes place by attainment of the age of majority which is eighteen years.

True
If the law requires a document or other special form to a contract for mere convenience but not for
validity or enforceability, what is the right of the contracting parties upon perfection of the contract?

c. The contracting parties may compel each other to observe the form or document required by the law

A donated real property to B. When is the donation considered as valid?

b. If it is in a public instrument

Which of the following is not a valid form of a contract?

b. None of the choices

Donation of real property is required to be in writing, even in private.

False

This refer to contracts which are required by law for its efficacy to be in certain specified form

d. Formal or solemn contract

In case of conflict between the intention of the parties and the words of contract, the words or letter of
the contract shall prevail over the intention of the parties

False

A contract may be in a form of partly in writing and partly oral.

True

Form of a contract is one of its essential elements.

False

When it is absolutely impossible to settle doubts, and the doubts refer to incidental circumstances of a
gratuitous contract, the least transmission of rights and interest shall prevail.

True

A contract is required by law to be in certain form for its validity, enforceability, and convenience of the
parties.

True

Words which may have different significations shall be understood in that which is most in keeping with
the nature and object of the contract.

True

Which of the following is incorrect regarding the rules in interpreting a contract?

a. However general the terms of a contract may be, they shall be understood to comprehend things that
are distinct and cases that are different from those upon which the parties intended to agree
In case of conflict between the intention of the parties and the words of contract, which shall prevail?

b. The intention of the parties shall prevail over the words of the contract

When, there having been a meeting of minds of parties to contract, their true intention is not expressed
in the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable
conduct or accident, what is their remedy?

a. Reformation of the instrument

Contracts not governed by other articles with regard to its form must be in writing, even a private one,
when it involves among exceeding ____.

d. Php 500.00

Which of the following contract is not required to be put into writing in order to be valid?

a. Donations of personal property not more than Php 5,000.00

When it is absolutely impossible to settle doubts, and the doubts refer to incidental circumstances of an
onerous contract, what shall be the interpretation of the contract?

d. The doubt shall be settled in favor of the greatest reciprocity of interest

The following may ask for the reformation of an instrument, except

c. The guilty party

In legal effect, a contract partly in writing and partly oral is deemed an:

a. Oral contract

Once a party who has the right to seek annulment of the contract ratifies it, he can still subsequently
bring the action for annulment.

False

This refers to the adoption or affirmation of a voidable contract

b. Ratification

An action for annulment be brought in cases of mistake or fraud must be made within 4 years from the
date of contract.

False

When a voidable contract is ratified, it becomes valid from its ratification.

False
If one party cannot restore what he is bound to return in the decree of annulment, the other cannot be
compelled to comply with what is incumbent upon him.

True

What is the status of a contract entered into between a person who can give consent and an
unemancipated minor, insane or demented person, or deaf-mutes who do not know how to write?

d. Voidable on the part of the incapacitated person

Which of the following contracts is considered a voidable contract?

a. A contract entered into by a person under a hypnotic spell

What is the effect if the person employing violence or physical coercion that causes the consent
obtained to be vitiated is not one of the contracting parties, i.e., a third person?

c. The contract is voidable

This refers to a contract which has all the essential requisites of a contract but which may be set aside by
reason of equity on account of damage to one of the parties or upon a third person.

a. Rescissible contract

Rescission is available only to the contracting parties.

False

A contract is entered into between A, a minor, and B, an insane person. C, the father of A ratified the
contract. Prior to the ratification, what was the status of the contract between A and B?

d. Voidable

The available actions for voidable contracts are ratification, annulment, and declaration of nullity.

False

The available action for voidable contracts are: ratification, annulment, and declaration of nullity

True

Which of the following is not an effect of ratification?

d. The contracting parties shall restore to each other the things which have been the subject matter of
the contract, with their fruits

Which of the following is not one of the requisites for rescission?

a. The thing object of the contract must be legally in the possession of a third person who acted in good
faith
Those which are entered into by guardians whenever the wards whom they represent suffer lesion by
more than one-fourth of the value of the things which are the object thereof are considered as
rescissible contract.

True

For a payment to be rescissible, the debtor or payor must be insolvent.

True

Who may not file an action for rescission?

a. None of the choices

A and B entered into a contract of sale of a piece of land, not knowing that the said property has already
been the object of another sale under different sale under different terms and conditions, by their duly
representatives. What is the status of the contract between A and B?

b. Voidable

A rescissible contract may be ratified and be cleansed from all of its defects.

False

This refers to a contract that is defective by reason of the incapacity or vitiated consent of one of the
parties.

a. Voidable contract

This refers to a contract that is defective by reason of the incapacity or vitiated consent of both the
parties

b. Unenforceable contract

Which of the following is not one of the characteristics of a void contract?

c. The action or defense for the declaration of the inexistence of a contract should be filed within 4 years
only

Statute of Frauds covers agreements that by its terms is not to be performed within a month from the
making thereof.

False

Unenforceable contracts cannot be assailed by third persons i.e., they do not have the right to defense
of unenforceability.

True

Contract of sale of shabu is considered which kind of contract?

a. Void contract
Which of the following is not considered as an unenforceable contract?

a. Those were one of the parties is incapable of giving consent to a contract

In an unenforceable contract entered by two incapacitated persons, ratification by a parent or guardian

makes the contract voidable at the instance of the other party.

True

Statute of frauds apply to ____ contracts only.

d. Executory

What is the effect when a contract constitutes a criminal defense and both parties are guilty?

b. The instruments of the crime will be confiscated in favor of the government

Ratification of a defective contract shall be express and implied or tacit.

False

What is the status of a contract wherein there is lack of consent, and wherein consent is vitiated,
respectively?

a. Void and voidable

Jason bought a brand new car from Joshua for Php 500.00. He knew that the price of a brand new car is
not Php 500.00. What is the effect of this on the contract of sale?

b. The contract is valid

Which of the following acts, when committed by a third person, does not vitiate consent?

a. Fraud

Which type of fraud vitiates consent in a contract?

d. Causal fraud or dolo causante

Donation of real property and its acceptance is required to be in a public instrument.

True

If there is a consideration or payment for the option, when may the offerer withdraw the offer provided
that there has not yet been any acceptance?

b. Only after the lapse of the option period agreed upon

If there is no consideration or payment for the option, when may the offerrer withdraw the offer
provided that there has not yet been any acceptance?

a. At any time within the option period agreed upon

Within how many years may an action for annulment be brought in cases of incapacity?

a. 4 years from the time guardianship ceases

Jason promised to sell his laptop to Joshua for the amount of Php 20,000.00, giving Joshua 5 days to
decide whether or not he wants to buy it. Joshua gives Php 1,000.00 to Jason as an option money.
Which type of the contract was perfected in this case?

c. Option contract

Who among the following may not bring an action for annulment?

d. The party who obtained consent of the other party by mistake, violence, intimidation, undue
influence, or fraud

What is the status of a contract entered into between an unemancipated minor and an insane of
demented person?

a. Unenforceable

Statute of Frauds covers agreements that by its terms is not to be performed within 1 year from the
making thereof.

True

A contract entered into by a demented person and a deaf-mute who do not know how to write is
voidable to both parties.

False

Interest rate on unpaid balances in a loan contract falls under what kind of elements?

c. Accidental elements

A stipulation regarding the place of payment or performance falls under what kind of elements of a
contract?

b. Accidental elements

Sale is a contract whereby the offeror gives the oferree a certain period within which to buy or not to
buy a certain object for a fixed price.

False

Jason threatened to kill Joshua by pointing a gun at him if he does not sell him his house. Joshua then
sold his house to Joseph. Consent is vitiated under which ground?

b. Intimidation or moral coercion

Which type of causal fraud is employed when through the insidious words or machinations of one of the
contracting parties, the other is induced to enter into a contract which, he would not have agreed to
enter into?
c. Active fraud

What is the status of a contract agreed to into a state of drunkenness or during a hypnotic spell?

b. Voidable

Statute of Frauds applies executory completed, executed and partially consummated contracts.

False

When will a mistake in giving consent still make the contract valid?

a. If the party alleging the mistake knew the doubt, contingency or risk affecting the object of the
contract

Which type of causal fraud is employed when there is failure to disclose facts, when there is duty to
reveal them, as when the parties are bound by confidential relations?

a. In case of a mere expression of an opinion by made by an expert, and the other party had relied on
the former’s special knowledge

An example of a natural element is a stipulation to pay interest on outstanding loan balance.

False

When may an action for annulment be brought in cases of mistake or fraud?

d. 4 years from the time of discovery

Business advertisements such as television commercials, classified ads, billboards, and brochures are
considered as an offer

False

This pertains to when a person takes improper advantage of his power over the will of another,
depriving the latter of a freedom of choice.

a. Undue influence

An action for annulment be brought in cases of mistake or fraud must be made within 4 years from the
date of discovery.

True