Republic of the Philippines

PALAWAN STATE UNIVERSITY

College of Business and Accountancy

MIDTERM EXAM
OBLIGATIONS AND CONTRACTS
I. Multiple Choice. Write the letter of your answer in your examination paper. No erasures.
1. Solidary debtors A, B and C owes joint creditors X, Y, Z and W 12,000.00. X, T and Z can collect from A
a. 12,000
b. 6.000
c. 9,000
d. 3,000
2. D obliged himself to paint the house of C or to paint the picture of C, in a standing position, using 10 by 10
canvass. Later because of financial reverses, C sold his house to X. which of the following statement is correct?
e. The obligation of D is extinguished because he cannot make a choice.
f. D may paint the picture of C
g. D may cancel the contract and ask for damages
h. None of the above
3. The buyer has the right to the fruit of the thing from:
a. The time the thing is delivered
b. The time the contract is perfected
c. The time the obligation to deliver the thing arises
d. The time the fruits are delivered
4. A owes B 2,000.00 demandable and due on September 10, 2006. B on the other hand, owes A 2,000.00
demandable and due on or before September 30, 2006. If B claims compensation on September 10, 2006, can A rightfully
oppose?
a. No. B who was giving the benefit of the term, may claim compensation because he could then choose to
pay his debt on September 10, 2006 which is actually “on or before September 30, 2006.”
b. Yes, A can properly oppose because for compensation to take place, mutual consent of both parties is
necessary.
c. Yes, A c ab properly oppose and if B still refuses to accept his payment made on September 30, 2006, A
can deposit his payment in court.
d. None of the above.
5. A, B and C executed a promissory note worded as follows: “We promise to pay to X, Y and Z the sum of
90,000.00 (Sgd.) A, B and C”.
a. A is obliged to pay to X, Y and Z 90,000.00
b. A is obliged to pay to X 30,000.00
c. A is obliged to pay to X 60,000.00
d. A is obliged to pay to X 10,000.00
6. A owes B 2,000.00 demandable and due on September 10, 2006. B on the other hand, owes A 2,000.00
demandable and due on or before September 30, 2006. If B claims compensation on September 10, 2006, can A rightfully
oppose?
a. No. B who was giving the benefit of the term, may claim compensation because he could then choose to
pay his debt on September 10, 2006 which is actually “on or before September 30, 2006.”
b. Yes, A can properly oppose because for compensation to take place, mutual consent of both parties is
necessary.
c. Yes, A c ab properly oppose and if B still refuses to accept his payment made on September 30, 2006, A
can deposit his payment in court.
d. None of the above.
7. A, B and C executed a promissory note worded as follows: “We promise to pay to X, Y and Z the sum of
90,000.00 (Sgd.) A, B and C”.
a. A is obliged to pay to X, Y and Z 90,000.00
b. A is obliged to pay to X 30,000.00
c. A is obliged to pay to X 60,000.00
d. A is obliged to pay to X 10,000.00
8. Change of persons or objects:
a. Solutioindebiti
b. None of the above
c. Novation
d. Confusion
9. Which of the following is not a ground for the extinguishment of an obligation?
a. Remission
b. Merger
c. Compensation
d. Death of creditor
e. None of the above
10. Statement no. 1: D oblige to give a specific car to C on Dec. 20, 2006. If on the date stated D did not comply with
his obligation, the next day he is considered in default without the need of demand.
 Statement no. 2: S sold to B a specific car for 10,000.00. Both parties promise to comply with their obligations the
day after tomorrow. If on the date stated S delivers the car to B, but B is not ready to comply with hisobligation,
from thereon he is considered in default without the need of a demand.
a. Both are true
b. Both are false
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true

II. TRUE OR FALSE. Write True if the statement is correct and False if the statement is wrong.
1. An obligation is always civil in nature.
2. Solidarity in an obligation is preferred.
3. Contract has the effect of law between the parties.
4. Loss of the determinate thing by virtue of fortuitous event extinguishes the obligation.
5. A suspensive condition may give rise to an obligation.
6. A conjunctive obligation is one where there are several prestations and all of them are due.
7. There is mora accipiendi if the debtor is in delay.
8. In case of loss, the determinate thing perishes with the owner, hence he shall bear the loss.
9. A pure or simple obligation is that kind of obligation that requires no condition and is therefore demandable at
once.
10. When there is breach in the fulfillment of the obligation, the party aggrieved may go to Court and seek damages.
III. ENUMERATION. Provide what is being asked.
26-30 Sources of obligation;
31-34 Requisites for recovery of monetary interest
35-40 Modes of extinguishment of obligation

IV. ESSAY. Answer the question and support your answer with legal basis.

41 – 45 . Sara G sold and promised to deliver to Mateo her Tamagochi with serial number 8888, likewise, he made the
same dealings with Raver. The tamagochi was stolen by Lupin. Is Sara G still liable?

46 – 48 .A owes B 2,000.00 demandable and due on September 10, 2006. B on the other hand, owes A 2,000.00
demandable and due on or before September 30, 2006. If B claims compensation on September 10, 2006, can A rightfully
oppose?

49-53.X, Y and Z solidary bound themselves to pay to solidary creditors A, B and C the amount of 75,000.00. The loan
was secured by a mortgage on B’s land. Out of gratuity, A, in a public instrument, renounced the obligation in favor of X,
with the formality required by law. What will happen to the entire obligation?

54- 58. Pakilamero discovered that Lakwatsera left her farm full of poultry animals unattended. For several weeks,
Pakilamero obliged himself to take good care of the Farm, he was able to harvest and sell eggs and other poultry products
from Lakwatsera’s farm. He even spent some of his own money to improve the fence of the poultry. Six months later,
Lakwatsera came home and surprised to discover that her farm had develop into something better, Pakilamero told
Lakwatsera what he did and sought for reimbursement of his expenses. Is Lakwatsera obliged to reimburse the expenses
of Pakilamero?

59-60 Mario agreed to deliver prohibited drugs to Jose. Later on, it was agreed that Mario would pay Jose P 50,000
instead of delivering the drugs. Will the novation of obligation prosper?

61-65. Marco promised to construct a house for Polo. The contract carried a penal clause that in case of non-compliance,
X would have to pay a penalty of P100,000. Marco did not construct the house and, as a consequence, Polo suffered
damage in the amount of P40,000. What will be the liability of Marco?

End of exam.

“In case of doubt, push on just a little further and then keep on pushing.”
-General George S Patton, Jr.

To God be the glory!

Prepared by: ATTY. ODESSA BUENA C. ARZAGA