Republic of the Philippines

SULTAN KUDARAT STATE UNIVERSITY

College of Business Administration and Hospitality Management
Department of Accountancy
Tacurong City Campus, Sultan Kudarat

Midterm Examination
Law on Obligation and Contracts

Name Course/Year/Section: Score:

Instructions: Write all your answers in the test questionnaire. Use only blue/black inked pen. Erasures are
considered wrong. Please follow instructions carefully.

I. True or False. Write true if the statement is correct, otherwise write false.

1. A joint creditor cannot act in representation of the others.

2. When an obligation is joint, damages resulting from breach of the obligation will be borne by the debtor who
TRUE caused the same.
3. In a joint indivisible obligation, delivery must be made to all joint creditors.
4. Common carriers are bound by law to observe extraordinary diligence.
5. A tenant buys the house he is renting is an example of traditio constitutum possessorium.
6. Mora accipiendi is the delay of the parties in a reciprocal obligation.
FALSE
7. Fraud is the absence of due care required by the nature of the obligation.
8. Any waiver of an action for future fraud is voidable.
TRUE 9. A potestative condition depends upon the will of one of the contracting parties.
FALSE 10. In a divisible contract, the whole contract is made unenforceable by the illegality of some terms.
TRUE 11. In a solidary obligation, payment made by any of the solidary debtors extinguishes the obligation.
FALSE 12. In a joint indivisible obligation, “joint” refers to active subject.
13. An obligation is solidary when the nature of the obligation requires solidarity.
TRUE 14. “Future knowledge of a past event” is a condition.
FALSE 15. In a facultative obligation, if it is impossible to give the substitute, another substitute is given.

II. Multiple Choice. Encircle the letter of the best answer.

1. It is the juridical relation resulting from lawful, voluntary, and unilateral acts by virtue of which the parties
become bound to each other to the end that no one shall be unjustly enriched or benefited at the expense of
another.
a. Agreement c. Contracts
b. Vinculum juris d. Quasi-Contracts
2. This takes place when something is received when there is no right to demand it, and it was unduly delivered
thru mistake.
a. Solutio Indebiti c. Vinculum juris
b. Negotiorum Gestio d. Prestation
3. This happened when the creditor make a demand and the obligor fails to deliver the thing.
a. Negligence c. Mora accipiendi
b. Mora solvendi d. Compensatio morae
4. Demand is not necessary to incur delay when:
a. Creditor refuses the performance without just cause.
b. The debtor is guilty of non-performance.
c. Time is the controlling motive
d. If the obligation bears interest
5. In what instance may we consider that there is no delay?
a. In civil obligations c. In obligation arising from crime
b. In positive obligation d. In natural obligation
6. It causes the extinguishment or loss of rights already acquired upon the fulfillment of the condition, that is, the
happening of the event which constitutes the condition. In other words, the fulfillment of which will extinguish an
obligation (or right) already existing.
a. Condition subsequent c. facultative condition
b. Suspensive d. positive condition
7. When the thing deteriorates with the debtor’s fault, the creditor may choose one of the following:
a. Mutual restitution
b. Rescission (cancellation) of the obligation with indemnity for damages
c. Suffer the deterioration of the thing
d. Institute an action for negligence.
8. It is a future and certain event upon the arrival of which the obligation (or right) subject to it either arises or is
terminated.
a. Fortuitous events c. Period
b. Condition d. Date and time
9. When the debtor binds himself to pay when his means permit him to do so, the obligation is:
a. Conditional b. Pure
 c. Simple d. With a Period
10. If the obligation of the debtor is "I will pay you my debt after I have arrived from abroad," this is
a. Unenforceable c. Void
b. With a Period d. Conditional
11. "A sells to B his lot and house in the city if A decides to transfer and live in the countryside" is an example of:
a. Mixed Condition c. Casual Condition
b. Potestative Condition d. Resolutory Condition
12. A contract is in the stage of conception when:
a. There is meeting of the minds. c. The parties come to an agreement.
b. Negotiations are in progress. d. The contract is perfected.
13. If the obligor binds himself to perform his obligation as soon as "he shall have obtained a loan" from a certain
bank, this obligation is:
a. With a Term  c. Suspensive
b. Conditional d. Resolutory
14. Delay in the giving or delivering of a thing
a. Mora solvendi ex re c. Mora accipiende ex re
b. Mora solvendi ex persona d. Mora accipiende ex persona
15. Which of the following statements is false?
a. Obligations to give definite things and those that are not susceptible of partial performance
shall be deemed divisible.
b. Execution of a certain number of days of work shall be divisible.
c. Accomplishment of work by metrical units are divisible
d. An obligation to pay a certain amount in ten annual installments is divisible.
16. A promised to give B his bag or sunglasses or belt on B’s 18 th birthday. Before B’s 18th birthday, all the things got
lost due to A’s fault.
a. The obligation is extinguished.
b. A and B should agree on another object to replace the lost ones.
c. B has a right to demand the value of the last thing lost plus damages.
d. A should pay B the value of all the objects that got lost due to A’s fault.
17. A obliged himself to pay B P5,000 on or before September 20, 2015. Which statement is false?
a. A can pay B before September 20, 2015.
b. B cannot demand payment before September 20, 2015.
c. The period is for the benefit of the debtor.
d. The period is for the benefit of the creditor.
18. “Period” agreed to by the parties.
a. Legal c. Definite
b. Conventional d. Judicial
19. “I will support you until you die.”
a. Subject to suspensive condition c. With a suspensive period
b. Subject to resolutory condition d. With a resolutory period
20. “I will give you free board and lodging if you do not engage yourself in prostitution.”
a. Condition void; obligation valid c. Condition void; obligation void
b. Condition valid; obligation void d. Condition valid; obligation valid
21. “I will pay you if I decide to sell the house in which I live.”
a. Condition void; obligation valid c. Condition void; obligation void
b. Condition valid; obligation void d. Condition valid; obligation valid
22. If the suspensive condition does not happen,
a. The obligation is deemed to have existed until the uncertainty of the happening of the condition has been
determined.
b. The obligation subsists.
c. It is as if the conditional obligation never existed.
d. The suspensive condition is void.
23. Absence of due care required by the nature of the obligation.
a. Fraud c. Delay
b. Negligence d. Contravention of tenor
24. Damages to vindicate the right that has been violated.
a. Actual c. Nominal
b. Moral d. Temperate
25. Demand by the obligee is not necessary in order that delay may exist
a. When the obligation or law expressly declares.
b. When time is of the essence.
c. When the obligor has rendered I beyond his power to perform.
d. All of the above.
26. In an obligation to give where the object is designated merely by its class or genus without any physical
segregation from all others of the same class, the thing is said to be
a. Certain c. Specific
b. Determinate d. Indeterminate
27. Parties may stipulate another standard of care other than the diligence of a good father of a family; no stipulation
can be made waiving the
a. Extraordinary diligence
b. Minimal diligence
 c. Diligence of a good father of a family
d. Diligence depending on the condition of the thing.
28. Creditor has a personal right to the fruits of the thing from the time
a. The obligation to deliver it arises. c. The obligation is constituted.
b. The thing has been delivered to him. d. The agreement if perfected.
29. Obligation consists in doing or not doing something.
a. Unilateral c. Real
b. Bilateral d. Personal
30. Obligee has a right to enforce the obligation against the obligor in a court of justice.
a. Civil obligations c. Moral obligation
b. Natural obligations d. State obligations

III. Explain and state briefly the rule or reason of your answers.
1. On the due date, X could not pay Y his obligation in the amount of P150,000. However, X owns a car worth
P90,000 and Y is indebted to him for P20,000. Before the due date of the obligation, X sold his land worth
P80,000 to Z. What rights can Y exercise?
 See Art. 1177 example (de Leon)

2. A is obliged to give B his only car on August 20,2015. A did not deliver the car on August 20. On August 27, an
earthquake destroyed the building where the car was; the car was completely destroyed while parked inside. Is A
still liable to B?
 Yes. See Art. 1169

XXX End of Examination XXX

Prepared by:

ARIANNE JOY A. PURAZO, CPA, MPA

DINDO O. QUITOR, CPA
DOROTEO O. DONGUINES, CPA

Noted by:

ROBERT A. DEMAFILES, CPA, MBA, CAT