1. Give 5 means of extinguishing an obligation.

2. What is payment or performance as a means of extinguishing an obligation?

3. Anna is obliged to deliver to Olaf 30 units of an imported 2-way radio to be used by

Olaf in his security agency. After having imported 28 units and delivered them to
Olaf, there are no more stocks available. Anna wants to deliver but he is unable to do
so because the manufacturers have stopped making the product. Is the obligation of
Anna to Olaf extinguished?

4. Annabelle is obliged to paint red the car of Karina. Annabelle painted the car, but the
color bordered in maroon. Karina accepted the performance although it was
irregular, and he did not express any protest to it. Is the obligation of Annabelle
extinguished?

5. Layla borrowed P20,000.00 from Chang’e. On due date, Layla gave Chang’e
P19,8000.00. Chang’e, although he knew that the payment was short of P200.00,
issued a receipt acknowledging the payment of P20,000.00. Is the obligation of Layla
extinguished?

6. Snow White borrowed P50,000.00 from Prince Charming. On due date, Ugly Witch,
a third person offered to pay Snow White’s debt. Can Prince Charming be forced to
accept the payment of Ugly Witch?

7. Rapunzel borrowed P50,000.00 from Flynn. In the contract, Rapunzel and Flynn
agreed that the debt of Rapunzel may be paid by a third person. On due date, Gothel,
a third person offered to pay Rapunzel’s debt. Can Flynn be forced to accept the
payment of Gothel?

8. Cardo Dalisay borrowed P100,000.00 from Alakdan. On due date, Lola Flora, a third
person paid the debt and Lola Flora did not intend to be reimbursed. Can Lola Flora
recover from Cardo Dalisay?

9. D borrowed p10,000.00 from c. The debt is due after 6 months. On due date, d paid c
p10,000.0, but at that time, c had already become insane. Of the amount received by
6, p6,000.00 was lost, while the rest was still in c’s possession. Is the obligation
extinguished?

10.Donna borrowed P10,000.00 from Carla. The debt is due after 6 months. On due date,
Donna paid Carla P10,000.0, but at that time, Carla had already become insane. Of
the amount received by Carla, P7,000.00 was used for his food, and the P3,000.00 for
his hospitalization. Is the obligation of Donna to Carla extinguished?

11.Lily Cruz is the tenant (renter) of an apartment owned by Don Manuel. Lily Cruz
went to the house of Don Manuel to pay the rent. Don Manuel was not around so Lily
Cruz gave payment to Diego Torillo, a neighbor of Don Manuel. Is the obligation of
Lily Cruz to pay rent to Don Manuel extinguished?
12.Arnaldo Ardiente borrowed P10,000.00 from Natalie Alcantara. On due date,
Arnaldo Ardiente made payment to Helena Montoya, a neighbor of Natalie
Alcantara. When Natalie Alcantara learned that Arnaldo Ardiente made the payment
to Helena Montoya, Natalie Alcantara told Arnaldo Ardiente that she (Natalie
Alcantara) was approving the payment that had been made. Is the obligation of
Arnaldo to Natalie extinguished?

13.Sarah Geronimo owed Devine cable TV company P3,000.00 representing Sarah

Geronimo’s bill for October 2015. Devine cable tv gave a collector’s uniform to Matteo
Guidicelli although Matteo Guidicelli was not its employee. Later, Matteo Guidicelli,
wearing the uniform and taking the bill receipt, went to the place of Sarah Geronimo
to collect payment. Sarah Geronimo paid the amount of P3,000.00. Is the obligation of
Sarah Geronimo to Devine Cable TV company extinguished?

14.Sebastian is obliged to give Kris a Kia pride car. Can Sebastian force Kris a Mercedes
Benz car instead of a Kia Pride Car which is more expensive and valuable?

15.Richard agreed to paint the car of Jojo. Can Richard instead paint Jojo’s refrigerator?

16.Anthony Taberna borrowed P10,000.00 from Dolores. On due date, Anthony Taberna
did not have any money to pay his debt, so he proposed to Dolores to accept a ring
of the same value. Dolores agreed to Anthony Taberna’s proposal and accepted the
ring. Is the P10,000.00 obligation extinguished?

17.Rosario is obliged to give Ramon 50 yards of textile whose quality was not mentioned
in the agreement. Can Ramon compel Rosario to deliver a first-class wool textile?

18.Maria is obliged to give Christopher 50 yards of textile whose quality was not
mentioned in the agreement. Can Maria compel Christopher to accept a textile that
would shrink at first wash?

19.Donya Agida borrowed P10,000.00 from Don Felipe. Can Donya Agida make
payments in installments?

20.Juan Rodrigo borrowed P10,000.00 from Montona. Can Montona force Juan Rodrigo
to make his (Juan Rodrigo’s) payments in installments?

21.What is legal tender?

22.Enrique borrowed Laiza P10,000. On due date, Enrique issued to Laiza a check in the
amount of P10,000. Is the obligation of Enrique to Laiza extinguished?

23.Ben borrowed from Edna P10,000. On due date, Ben issued to Edna a check in the
amount of P10,000. When is the obligation of Ben to Edna extinguished?

24.Julio Ardiente owed Lily Cruz P10,000.00 to be paid in 10 monthly installments. In

the contract, Julio Ardiente and Lily Cruz stipulated that the debt shall earn a
monthly interest of P100.00. On the first installment, d paid the amount of P1,000.00.
Did Julio Ardiente pay his first installment fully?
25.What is payment by cession?

26.What are the steps for a proper consignation?

27.Who shall be liable for the expenses of a properly made consignation?

28.After consignation to the court has been made, when is the obligation extinguished
corresponding the thing consigned as payment?

29.Once the consignation was approved by the court or accepted by the creditor, who
bears the loss?

30.Camilla dela Torre agreed to deliver a specific horse which was meant for entry in
the derby (horse race) to Emma Bonaobra. The right front leg of the horse, however,
was broken when the horse accidentally fell down a ditch. Is the obligation Camilla
dela Torre to Emma extinguished?

31.Agnes obligated herself to deliver to Alice a specific diamond ring. Before the date of
delivery and the ring was still in the possession Agnes, the diamond ring was lost. Is
the obligation of Agnes to Alice extinguished?

32.Elias Sanchez agreed to paint the portrait of Vito dela Cuesta. Due to a stroke, Elias
Sanchez became paralyzed and could move his hand and fingers. Is the obligation of
Elias Sanchez to Vito dela Cuesta extinguished?

33.Luna dela Cuesta is obliged to slaughter a carabao for Juan Felipe Dela Torre. Before
the due date of the performance of the obligation, a law prohibiting the slaughter of
carabaos was passed. Is the obligation of Luna to Juan Felipe extinguished?

34.Luciano stole the carabao of Ingrid. After trial, Luciano was ordered to return the
carabao. Before Luciano could deliver the carabao, the same was struck and killed by
lightning. Is the obligation of Luciano to Ingrid extinguished?

35.Lito Lapid stole the carabao of Jaime Fabregas. After trial, Lito Lapid was ordered to
return the carabao. Lito Lapid attempted to return the carabao to Jaime Fabrigas but
Jaime Fabrigas refused (did not accept) without any justifiable reason. Is the
obligation of Lito Lapid to Jaime Fabrigas extinguished?

36.Ador stole the carabao of Glen. After trial, Ador was ordered to return the carabao.
Ador attempted to return the carabao to Glen but Glen refused without any justifiable
reason. What should Ador do?

37.Carmen is obliged to give his horse to Joaquin. Tomas kills the horse. Is the obligation
of Carmen to Joaquin extinguished?

38.Agot Isidro is obliged to give his horse to Delfin. Don Emilio kills the horse. To whom
shall Delfin claim and to what extent?
39.John Prats borrowed P4,000.00 from Alyna Arevalo. The debt is evidenced by a
promissory note executed by John Prats. On due date, Alyana Arevalo informs John
Prats that she (Alyana Arevalo) will no longer be collecting the debt and delivers the
promissory note to John Prats. John Prats accepts Alyana Arevalo’s generosity. Is the
obligation of John to Alyana extinguished?

40.Mitch borrowed P5,000.00 from Amor. The debt is secured by a pledge of a ring which
Mitch delivered to Amor. Amor condones (disregards) the debt with Mitch accepting
the condonation. What will happen to the ring?

41.Pokwang borrowed P5,000.00 from Melai. The debt is secured by a pledge of a ring
which Pokwang delivered to Melai. Thereafter, the ring was found in the possession
of Pokwang. What is the presumption since the ring is now in the possession of
Pokwang?

42.What is confusion or merger of rights?

43.Anna, Elsa, and Olaf, joint debtors, issued a promissory note for P30,000.00 payable
to Ice Man. Ice Man assigns the note to Kristoff; Kristoff to Sven; and Sven to Elsa.
What will happen to the obligation of Anna, Elsa, and Olaf to Ice Man?

44.Anna, Elsa, and Olaf, solidary debtors, issued a promissory note for P30,000.00
payable to Ice Man. Ice Man assigns the note to Kristoff; Kristoff to Sven; and Sven to
Elsa. What will happen to the obligation of Anna, Elsa, and Olaf to Ice Man?

45.What is legal compensation?

46.Brandon owes William P10,000.00. William owes Brandon P10,000.00. Both debts are
due. What happens to the debts?

47.Aubrey, the sole proprietor of a construction supply store, purchased on credit office
supplies amounting to P5,000.00 from Marissa, the sole proprietor of an office supply
store. Marissa purchased on credit 10 bags of cement amounting to P5,000.00 from
the store of Aubrey. Both debts are due. Can legal compensation take place?

48.Catherine owes Lily P10,000.00 with Junior as guarantor. Lily owes Junior p10,000.00.
Can legal compensation take place?

49.Vice Ganda owes Vhong Navarro a cell phone. Vhong Navarro also owes Vice Ganda
a cell phone. Can legal compensation take place?

50.Amanda owes Joseph 10 sacks of rice, while Joseph owes Amanda 10 sacks of corn.
Can legal compensation take place?

51.Maria Mercedes owes Jose Guillermo 10 sacks of Milagrosa rice. Jose Guillermo owes
Maria Mercedes 10 sacks of Sinandomeng rice. Can legal compensation take place?

52.Vida owes Carlito P10,000.00 due today. Carliot owes Vida p10,000.00 due two weeks
from today. Can legal compensation take place?
53.Jaime owes Teresa P20,000.00. Teresa owes Jaime 5% of the net profits of his (Teresa’s)
business based on the audited financial statements. The audit, however, is still going
on. Can legal compensation take place?

54.Rafael owes Margarette P20,000.00. Margarette owes Rafael P20,000.00. Rafael’s debt,
however, has prescribed. Can legal compensation take place?

55.Olivia owes Gabriel P20,000.00. Gabriel owes Olivia P20,000.00 payable when Olivia
passes the CPA board exam. If Olivia has not yet passed the CPA board exam, can
legal compensation take place?

56.Jennifer owes Connie 10 sacks of Milagrosa rice which are stored in Jennifer’s
warehouse. Connie owes Jennifer 10 sacks of Milagrosa rice. Nicole, a third person,
has sued Jennifer to recover the 10 sacks of rice stored in Jennifer’s warehouse because
they were allegedly stolen by Jennifer. Can legal compensation take place?

57.Anne Curtis owes Erwan Eussaf P20,000.00 with Jhong Hilario as guarantor of the
debt. Erwan Eussaf owes Anne Curtis P4,000.00. Erwan Eusaff sues Anne Curtis but
Anne Curtis cannot pay so Erwan Eussaf proceeds against Jhong Hilario. What is the
obligation of Jhong Hilarios, if any?

58.Differentiate total compensation from partial compensation.

59.Donna Cruz is indebted to Charlito for P50.000.00. Charlito sued Donna Cruz for
collection. One week after Donna Cruz was sued, Charlito, through negligence,
rammed his jeep into the parked car of Donna Cruz causing a dent and scratches on
two of its doors. If the claims the same in his counterclaim and can prove that it was
due to the wrongful act of Charlito and the amount thereof, what will happen to
Donna Cruz’s debt?

60.Alex is indebted to Toni for P30,000.00. Later Alex, by means of violence, forced Toni
to buy her (Alex’s) car and sign a promissory note for P30,000.00. Can legal
compensation occur?

61.Fender is indebted to Marce for P30,000.00. Later Fender, by means of violence, forced
Marce to buy her (Fender’s) car and sign a promissory note for P30,000.00.
Compensation took place. Thereafter, Marce’s debt is declared annulled by the court.
What will happen to the legal compensation?

62.Luis owes Vilma P10,000.00. The debt is evidenced by a promissory note executed by
Luis and payable to Vilma. Vilma assigns the note to Edgar with notice to Luis. To
whom will Luis pay?

63.Asuncion owes Duke P50,000.00 due on December 20, 2015. Duke owes Duke
P30,000.00 due on December 15, 2015. On December 18, 2015, Duke assigned his
credit right to Criselda with Asuncion’s consent. If Criselda will collect the credit on
December 20, 2015, can Asuncion set up the defense of compensation?
64.Prince owes Nova P50,000.00 due on December 20, 2015. Nova owes Prince
P30,000.00 due on December 15, 2015. On December 18, 2015, Nova assigned her
credit right to Gerry with Prince’s consent but Prince reserving his right to set up
compensation against Gerry. If Gerry will collect the credit on December 20, 2015, can
Prince set up the defense of compensation?

65.Luz owes Ben pP0,000.00 due on decemeber 15. C, on the other hand, owes d the
following debts: p16,000.00 due on december 1; p6,000.00 on december 8; and
p10,000.00 on december 14. On december 12, c assigned his credit right to t with notice
to d but d did not give his consent to the assignment. If t collects the credit from d on
december 15, what debts can d set up as compensation, if any?

66.Love, a rice dealer based in Davao city, owes Russell, a rice dealer based in Cebu city,
100 sacks of rice which Russell delivered from his own stock to Paulo, a customer of
Love who is a resident of Cebu city. Russell also owes Love 100 sacks of rice which
Love delivered from his own stock to Lyric, Russell’s customer who is a resident of
Davao city. Both debts are now due. Can legal compensation take place?

67.Candice, a rice dealer based in Davao city, owes Julie, a rice dealer based in Cebu city,
100 sacks of rice which Julie delivered from his own stock to Pearl, a customer of
Candice who is a resident of Cebu city. Julie also owes Candice 100 sacks of rice which
Candice delivered from her own stock to Heinz, Julie’s customer who is a resident of
Davao city. Both debts are now due. Candice incurred P2,000.00 in transporting the
rice to Davao city, and Julie incurred P1,500.00 in transporting the rice to Cebu city,
how much should Julie pay?

68.Jaina owes Lalang P5,000.00 payable on or before December 31. Lalang owes Jaina
P5,000.00 payable on December 1. If Lalang claims compensation on December 1, can
oppose compensation?

69.Ime deposited 50 sacks of rice with Macky. Later, Ime borrowed 50 sacks of rice from
Macky payable on January 5, 2016. If on January 5, 2016, Ime demands the return of
the 50 sacks of rice, can Macky refuse saying that there is compensation?

70.Diane deposited 50 sacks of rice with Keitra. Later, Diane borrowed 50 sacks of rice
from Keitra payable on January 5, 2016. If on January 5, 2016, Keitra demands the
payment of borrowed rice. Can compensation take place?

71.Johnny deposited P50,000.00 with Landbank of the Philippines. But Johnny has a loan
obligation to Landbank of the Philippines in the amount of P20,000.00 which is
already due. Without asking the permission of Johnny, Landbank of the Philippines
deducted P20,000.00 from Johnny’s account. Is the bank correct in deducting based
on legal compensation?

72.Vonne is obliged to give Ranel an iPhone 11 pro cell phone. Later, Ranel borrowed
from Vonne an iPhone 11 pro cell phone. If Vonne demands the return of the cell
phone that Ranel borrowed, can Ranel refuse the return of the cellphone to Vonne
saying that there is legal compensation?
73.Vaklang Two stole the laptop computer of Kekiro. Vaklang Tow was arrested,
tried, and convicted of theft and was ordered by the court to pay P50,000.00
damages representing the value of the laptop computer. Kekiro, however, owes
Vaklang Two P50,000.00 by way of loan which is already due. If Kekiro demands
the P50,000.00 damages, can Vaklang Two claim compensation?

74.Alvin stole the laptop computer of Drey. Alvin was arrested, tried, and convicted
of theft and was ordered by the court to pay P50,000.00 damages representing the
value of the laptop computer. Drey, however, owes Alvin P50,000.00 by way of
loan which is already due. If Alvin demands the P50,000.00 from Drey, can Drey
claim compensation?

75.What is novation?

76.What are the kinds of novation?

77.Amara is obliged to give Robert a Samsung Note 10 cell phone. Later, the parties
agreed that Amara would no longer give a Samsung note 10 cell phone but
Huawei mate 30 cell phone. Is there novation?

78.Dan is obliged to paint red the whole body of Michael’s only Toyota car later, the
parties agreed that Dan would paint yellow the whole body of the said car. No
mention was made in the second agreement of the parties that Dan would no
longer paint red the Toyota car. Is there novation?

79.What is expromision?

80.What is delegacion?

81.Francis borrows P100,000.00 from Dave. The obligation is secured by a mortgage

of Francis’s lot. Later, Francis and Dave agreed that Francis and Dave agreed that
Francis would give a diamond ring instead of P100,000.00 to Dave. What happens
to the P100,000.00 obligation and the mortgage?

82.Runy borrows P100,000.00 from Geslat. The debt bears interest at 1% per month
which the parties agreed would be given by Runy to Elle, a creditor of c, on a
monthly basis for 12 months. Later, d proposed, and c agreed, that d would give c
a diamond ring instead of p100,000.00. What will happen to the obligation to pay
P100,000.00? How about the obligation to pay interest?

83.Ceci borrows P100,000.00 from Borik. The obligation is secured by a chattel

mortgage on Ceci’s car. Later, Ceci and Borik agreed that Ceci would give a
diamond ring instead of P100,000.00 to Borik. The parties, however, stipulated that
the chattel mortgage constituted on the car would subsist until Ceci has delivered
a diamond ring to Borik. What happens to the chattel mortgage on the car?

84.Bamboo agreed to give Lea 5 bales of tobacco leaves. Later, the parties agreed that
Bamboo would give Lea 5 bales of marijuana leaves instead of 5 bales of tobacco
leaves. Is the novation valid? What happens to the original obligation?
85.Arnel is obliged to give Thate 5 bales of marijuana leaves. Later, the parties agreed
that Arnel would give Thate 5 bales of tobacco leaves. Is the novation valid? Is
there any obligation on the part of Arnel?

86.Madeng was forced by Bryan to buy Bryan’s car for P20,000.00 and issue a
promissory note therefor. After one week, Madeng voluntarily entered into an
agreement with Bryan whereby she would give Bryan a Nokia cell phone instead
of P20,000.00. Is there novation?

87.Matthan agreed to give Hannon a Toyota Altis car if Hanon passes the CPA board
exam. Later, the parties agreed that Matthan would give Hannon a Honda civic
car instead of a Toyota Altis car. What will happen to the suspensive condition?

88.Cookie agreed to give Mike a sack of rice every month until Mike graduates from
college. Later, the parties agreed that would give P1,000.00 per month instead of a
sack of rice. Until which time shall Cookie give Mike P1,000.00?

89.What is subrogation?

90.Dennece owes James P100,000.00 secured by a mortgage on Dennece’s lot.

Dennece also owes Jameston P80,000.00 which is unsecured. Jameston, without the
knowledge of Dennece paid James p100,000.00. What are the rights of Jameston, if
any?

91.D obtained a loan of p100,000.00 from c. The debt is secured by the mortgage of
d’s lot. Later, t paid c p100,000.00 with d’s consent. What are the rights of t, if any?

92.Raul owes Bryan P100,000.00. The debt is secured by a chattel mortgage on Raul’s
car and the guaranty of Sarah. Sarah, without Raul’s knowledge pays Bryan
P100,000.00. What are the rights of Sarah? What happens to the guaranty?

93.Jimmy owes Carl P100,000.00. With the consent of Jimmy and Carl, Tanya pays
Carl P50,000.00. What are obligations of Jimmy and Tanya?

94.Ferdinand owes Lapu-Lapu P100,000.00. With the consent of Ferdinand and Lapu-
Lapu, Datu pays Lapu-Lapu P50,000.00. In case the remaining assets of Ferdinand
cannot fulfill all of his obligations, who is preferred among Lapu-Lapu and and
Datu, why?