Since 1977
BUSINESS LAW
BL.1301-Drill 2 - Obligation
1. When a third person of his own accord and even without
the knowledge of the original debtor assumes the
obligation with the consent of the creditor:
a. Expromission c. Subrogation
b. Delegacion d. Real novation
2. The delivery of a private document evidencing a credit,
made voluntarily by the creditor to the debtor even before
the debt is paid, extinguishes the obligation by:
a. Express remission c. Compensation
b. Implied remission d. Novation
3. Payment shall be made to, except:
a. Obligee
b. Creditor’s assignee
c. Obligor
d. Executor of the deceased oblige
4. Statement 1: The nullity of the principal obligation carries
with it that of the penal clause.
Statement 2: Payment means not only the delivery of
money but also the performance, in any other manner, of
an obligation.
a. First statement is true; second statement is false.
b. First statement is false; second statement is true.
c. Both statements are true.
d. Both statements are false
5. Which of the following is not an element of
Compensation:
a. Debts to be compensated are due and demandable.
b. There is controversy or adverse claim over any debts
to be compensated.
c. There are two or more debts of the same kind.
d. There are two persons who are creditors and debtors
of each other.
6. Which of the following is not really a special payment
a. Dation in payment
b. Tender of payment and consignation
c. Application for payment
d. Payment by cession
7. The debtor who cedes or assigns his property to his
creditor in payment of his debt shall be released from his
obligation.
a. To the extent of the net proceeds of the thing leased.
b. To the extent allowed by the creditor
c. Only to the extent of the net proceed of the thing
assigned
d. Totally extinguished under dation in payment
8. Which of the conclusion is correct?
a. D who indebted to C in the amount of P100,000
conveys to C ownership of his jeep which later on was
found out to have a value only of P70,000. D still
owes C P30,000.
b. D who is indebted to C in the amount of P100,000,
conveys to C the ownership of his jeep with an
agreed appraisal value of P150,000. C is now
obligated to Pay D P50,000.
c. F, a father, is indebted to C, a creditor, in the amount
of P15,000,000. F dies leaving to his only son S a
house and lot valued at P10,000,000. If S voluntarily
pays C P15,000,000 he can recover the excess
payment of P5,000,000.
Page 1 of 2 www.prtc.com.ph
ATTY. ONG/LOPEZ
OCT 2012
d. S offered the sale of a house and lot to B for
P10,000,000 giving to the latter an option of 60 days.
B paid S P10,000 as option money. There is already
as between S and B a perfected contract of sale.
9. Dada owes Cokey P150,000 payable on January 5, 2008.
To fulfill the obligation, Dada with the consent of Cokey,
delivers his only car on January 4, 2008 worth P140,000
at around 8:00 pm to Cokey’s residence. Cokey accepted
the car but the same was destroyed by lightning after
one hour upon delivery. In this case:
a. Dada still owes Cokey the amount of P150,000
b. Dada still owes Cokey the amount of P10,000
c. Dada is no longer liable to Cokey because the
obligation is extinguished by fortuitous event.
d. Dada Still owes Cokey P140,000 for the amount of the
car loss by lightning.
10. Three of the following are requisites of cession in
payment. Which is the exception?
a. One debtor and one creditor
b. Complete or partial insolvency
c. More than one debt
d. Abandonment of all debtor's property not exempt
from execution
11. Consignation alone extinguished obligation under the
following, except:
a. When the creditor is incapacity to received payment
at the time it is due.
b. When without just cause the creditor refuses to give
receipt.
c. When there are two or more persons claim the same
right to collect.
d. When the debt is already due and demandable.
12. To which of these modes of special payment is the law on
sales applicable?
a. Dacion en pago
b. Cession en pago
c. Tender of payment and consignation
d. Application of payment
13. Drago owes Carlo P50,000. Without the intention of being
reimbursed, Sandy paid Drago’s obligation and Carlo
accepted it. Drago did not accept Sandy’s generosity.
a. Drago’s obligation is totally extinguished.
b. Sandy may ask reimbursement from Drago P50,000.
c. Drago obligation to Carlo is extinguished but he may
be compel to pay Sandy P50,000 whether or not
Drago accept the generosity of Sandy.
d. Sandy may recover from Carlo P50,000.
14. Which of the following is not a requisites of application for
payment
a. There must be at least two debtor or creditor;
b. There must be at least two debt
c. The debt must be of the same kind
d. The payment of the debtor is not sufficient to cover all
the debt.
15. Toblerone is a lessee of Codsbury building. Under the
lease contract, Toblerone must pay the monthly rental of
P25,000 to Codsbury at the latter’s office within the first 5
days of the month. On the sixth month of the lease,
Toblerone went to Codsbury’s office to pay the rental but
he was told by Goya, an employee to Codsbury, that the
BL.1301drill 2
EXCEL PROFESSIONAL SERVICES, INC.
latter was confined at the hospital. Goya told Toblerone that
he could entrust payment to him. Hershey, a son of
Codsbury, who happen around, however, demanded that
Toblerone must pay to him claiming that as Codsbury’s son,
he was the one authorized to receive the payment. Give
where you do not know to whom you will give your payment,
which of the following modes of payment would you avail
yourself of if you were Toblerone?
a. Dacion en pago c. Consignation
b. Payment by cession d. Application of payment
16. When the obligation consists in the delivery of a generic thing
whose quality and circumstances have not been agreed
upon:
a. The creditor can demand a thing of superior quality
b. The debtor can deliver of inferior quality
c. The Debtor can deliver of superior quality even against
the will of the creditor.
d. The purpose and other circumstances shall be taken into
consideration in determining the quality of the object to
be delivered.
17. Bulacan borrowed from Bruho Bank P2,000,000 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 on the date of maturity. On due date, Bulacan
must pay Bruho Bank:
a. P2,000,000 c. P800,000
b. P5,000,000 d. P20,000,000
18. On December 23, 2012, Carlota, the owner of a sarisari
store, purchased several bags of "Yummy" candy worth
P1,000.00 from Delisyus, an authorized dealer of the
product. Carlota tendered her payment to Delisyus consisting
of 200 pieces of P5.00 coins. In this case:
a. Delisyus may refuse to accept the payment and demand
that she be paid in bills.
b. Delisyus cannot refuse to accept the payment because
what Carlota was offering as payment is legal
tender.
c. Delisyus may consign the payment in court if Delisyus
refuses to accept it and his obligation is automatically
extinguished.
d. The tender made by Carlota was invalid because the
tendered amount is not legal tender.
19. Payment by third person are presumed for the benefit of the
creditor in the following cases, except:
a. Ratification c. Estoppel
b. Subrogation d. Determinacion
20. It is the gratuitous abandonment by the creditor of his right
against the debtor.
a. Abandonment c. Remission
b. Novation d. Dation en pago
21. D owes C P50,000.00. Subsequently, D proposed to C that T
will assume his (D's) debt. C accepted the proposal of D.
Assume that on due date, T could not pay because of his
insolvency which was in fact subsisting 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.
22. A owes B P100,000. With consent of both, C pays B
P50,000. Now B and C are the creditors of A to the amount
of P50,000 each. Suppose A has only P50,000. Which is
correct?
a. B and C should divide the P5,000 equally
b. A may choose whom to pay
Page 2 of 2 www.prtc.com.ph
c. B should be preferred
d. C should be preferred
23. Personal novation:
a. Substitution of debtor
b. Subrogation of a third person in the place of the creditor
c. Both of (a) and (b)
d. None of the above
24. A thing is loss in the following cases. Which is the exception?
a. When the object is perishes
b. When the object disappear.
c. When the object goes out of commerce
d. When the object is diminish its value
25. D owes C the following debts: P6,000.00 due on June 12;
P6,000.00 due on June 15; P6,000.00 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 made in favor of C. Assuming that D has
P6,000.00 on June 18 and is ready to pay C, which of the
following statements is correct?
a. D may apply his payment of P6,000.00 to any of the
debts due on June 12, June 15, and June 18 since they
are all due as of June 18.
b. D may apply it 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.
26. OE is obliged to give OR his 1992 Mitsubishi, 4 door sedan
Lancer with plate number NBA 123 on September 30, 1999.
On October 10, 1999, OE had not yet deliver the car which
was totally destroyed by an earthquake on such date. Is OE
still liable?
a. No. The obligation is extinguished. The specific thing was
lost due to fortuitous event and no demand or deliver
was made by OR.
b. Yes. OE is in legal delay. OR can claim damages.
c. No. Even OE is already in default and can plead
impossibility of performance.
d. Yes. OR can instead demand for another car of
equivalent value from OE.
27. 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.
28. 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.
How was the obligation of Dolores to pay P15,000.00
extinguished?
a. By compensation. c. By confusion.
b. By novation d. By condonation.
29. Which of the following is not is not a mode of extinguishing
an obligation?
a. Loss of specific things c. Confusion
b. Condonation d. Quasi delict
30. A thing is considered lost when it:
a. Perishes c. Stolen or robbed
b. Goes out of commerce d. All of the above
BL.1301drill 2