OBLIGATIONS AND CONTRACTS

1. The following are the remedies of the creditor to pursue his claims against the
debtor, except:
a. pursue the property owned and in possession of the debtor
b. exercise all rights and bring all the actions of the debtor (accion subrogatoria)
c. Impugn the acts which the debtor may have done to defraud his creditors
(accion pauliana)
d. compel the debtor to perform the service in obligations to do.

2. Danilo borrowed P50,000.00 from Carlos. Carlos died before he has collected
the debt leaving Saul, his son, as heir. Which of the followings statements is
correct?
a. Saul can collect from Danilo although Danilo and Carlos did not agree
that the right to the debt will pass on to the heirs of Carlos
b. Saul can collect because the credit right is personal to Carlos
c. Saul can collect only if Danilo and Carlos agreed that the right to the debt will
pass on to the heirs of C
d. Saul cannot collect debt because the law prohibit’s the transmission of the
credit right

3. D is obliged to give C a specific car if C passes the Bar examination. D’s

obligation is an example of:
a. a pure obligation
b. an obligation with a suspensive condition
c. an obligation with a resolutely condition
d. an obligation with a period

4. D is obliged to give C a specific ring. The parties agreed that D may give a
specific bracelet as substitute. Which of the following statements is true?
a. if the ring is lost through a fortuitous event before substitution, the
obligation is extinguished
b. if the bracelet is lost through a fortuitous event before substitution, the
obligation is extinguished
c. if the ring is lost through a fortuitous event after substitution, the obligation is
extinguished
d. if the ring is lost through the debtor’s fault after substitution, the debtor shall
pay damages.

5. Consider the following statements:

I. The nullity of the principal obligation carries with it the nullity of the penal
clause
II. The nullity of the principal obligation does not carry with it the nullity of the
penal clause
III. The nullity of the penal clause carries with it the nullity of the principal
obligation
IV. The nullity of the penal clause does not carry with it the nullity of the principal
obligation

a. Statements I and III are true

b. Statements I and IV are true
c. Statements II and III are true
d. Statements II and IV are true

6. D borrowed from C P50,000.00. The obligation is secured by a chattel

mortgage on D’s Toyota car. Subsequently, D paid C P20,000.00. Unknown to D,
T, a third person, pays C P50,000.00 believing that D still owed C such amount.
a. T can recover P50,000.00 from D. if D cannot pay, T can foreclose the
mortgage on D’s Toyota car
b. T can recover nothing from D because he paid without the knowledge and
consent of D.
c. T can recover P30,000.00 from D. if D cannot pay, T can foreclose the
mortgage on D’s Toyota car.
d. T can recover P30,000.00 from D. if D cannot pay, T cannot foreclose the
mortgage on D’s Toyota car.

7. The following statements concerning payment by cession are true except one.
Which is it?
a. The creditors become the owners of the properties of the debtor that
were ceded to them.
b. Payment by cession extinguishes the obligations only to the extent covered by
the proceeds of the sale of the debtor’s properties
c. the debtor must be insolvent.
d. cession affects all the properties of the debtor except those exempt from
execution

8. B borrowed from XYZ Bank P2,000,000.00 payable at the end of 5 years.

Before maturity, an extraordinary deflation supervened causing the value of the
debt to rise to P5,000,000.00 on the date of maturity. On due date, B must pay
XYZ Bank:
a. P2,000,000.00
b. P5,000,000.00
c. P800,000.00
d. P20,000,000.00

9. 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 debts due on 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

10. M owes P P10,000.00. The obligation is evidenced by a promissory note.

Subsequently, P assigned the note to A. A to B, B to C and back to M. the
obligation of M is extinguished by:
a. compensation
b. confusion
c. condonation
d. the obligation was not extinguished because there was no payment.

11. Henry, husband, and Wilma, wife are legally separated. By order of the Court
which decreed the legal separation, henry is obliged to give a monthly support of
P10,000.00 to Wilma payable within the first five days of the month. Wilma owes
Henry P10,000.00 by way of a business loan. On the other hand, Henry has not
yet given Wilma’s support of P10,000.00 for this month. Both debts are already
due. Which of the following statements is correct?
a. both debts are extinguished by legal compensation because both are already
due
b. Wilma may claim compensation but not Henry
c. Henry may claim compensation but not Wilma
d. Neither one may claim compensation because the debts are not of the same
kind.

12. 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. this substitution of debtor is known as -
a. expromision
b. delegacion
c. tradition
d. dacion en pago

13.Refer to the facts in the preceding number. Assume also 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 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.
14. D obliged himself to deliver 5 grams of shabu to C. later the parties agreed
that D would instead give to C 5 sacks of rice. Which of the following statements
is correct?
a. The novation is void because the original obligation is void. Hence, C
cannot demand the delivery of 5 sacks of rice from D.
b. the novation is valid because the new obligation is valid. Hence C may
demand the delivery of the 5 sacks of rice from D
c. the original obligation although void is validated by the new obligation. Hence
C can demand the delivery of 5 sacks of rice from D.
d. the new obligation is only voidable because D had not yet performed the
original obligation at the time of the novation. Accordingly, the new obligation is
binding and C may demand the delivery of 5 sacks of rice from D until the new
obligation is annulled by a proper action in court.

15. The distinction between merger and compensation is that in merger:

a. the two debts may be payable at different places
b. two persons are in their own right debtors and creditors of each other
c. the debtor and creditor may agree on the set-off of the debts that are not yet
due
d. the debtor and the creditor refer to only one person.

16. The passage of time as a mode of acquiring or losing a right including the
extinguishment of an obligation is called:
a. remission
b. novation
c. prescription
d. merger

17. Cecilia, the owner of a sari-sari store, purchased several bags of “Dulcita”
candy worth P5,000.00 from Olga, an authorized dealer of the product. On due
date, cecili who sells the candies at P1.00 each, tendered her payment to Olga
consisting of 5,000.00 pieces of P1.00 coins.
a. Olga may refuse to accept the payment and demand that she be paid in
bills
b. Olga may not refuse to accept the payment because what Cecilia was offering
as payment is money circulated in the Philippines
c. Cecilia may consign the payment in court if Olga refuses to accept it
d. the tender made by Cecilia was valid because the P1.00 coins came from her
sales and she had plenty of them.

18. Anna Almeda, Belinda Bersola, and Claudia Cabrera executed the following
promissory note:

I promise to pay Dolores Dominguez or order the sum of

P30,000.00 on June 30, 2011.
 (Sgd. ) Anna Almeda
(Sgd. ) Belinda Bersola
(Sgd. ) Claudia Cabrera

On June 30, 2011, Dolores Dominguez can collect from Anna Almeda:
a. P10,000.00
b. P20,000.00
c. P30,000.00
d. Nothing because the note is void since it says “I promise” but was signed by
three persons.

19. An obligation where various prestations are due but the performance of all of
them is required in order to extinguish the obligation is known as:
a. alternative obligation
b. facultative obligation
c. conjunctive obligation
d. simple obligation

20. On June 1, 2010, Demetrio obtained a loan of P100,000.00 from Cornelio.

The loan which is payable on or before June 1, 2011 is secured by a chattel
mortgage on Demetrio’s brand new Toyota car with plate number XYZ 123. On
February 1, 2011, while Demetrio was opening the trunk of his car at the parking
lot of a grocery store to place the groceries he had just purchased, three
unidentified men approached him and took his car at gunpoint. He reported the
carnapping to the authorities but his car has not been recovered.
a. Cornelio may demand immediate payment of the loan unless Demetrio
gives another security therefore.
b. Cornelio may demand payment only on June 1, 2011 because Demetrio has
the benefit often period and the loss of the car was due to force majeure
c. Cornelio may no longer demand payment since the loan was extinguished by
reason of the loss of the car due to fortuitous event
d. Cornelio may demand immediate payment even of Demetrio offers another
security because the car is determinate and could not be replaced.

21. Alternative obligation and facultative obligation are similar in which of the
following respects?
a. the right of choice may be given either to the debtor or creditor
b. several prestations are due
c. only one prestation is due but the debtor may render another in substitution
d. the obligation becomes a simple obligation once the choice of the
pretation is made and communicated.

22. In which of the following independent cases is the payor of the debtor’s debt
not subrogated to the rights of the creditor
a. D owes C P10,000.00. The debt is secured by a pledge of D’s ring to C/ D also
owes X P8,000.00. X pays C P10,000 without the knowledge of D
D owes C P10,000. The debt is secured by a pledge of D’s ring to C; X pays C
P10,000.00 with the consent of D
c. D owes C P10,00000. The obligation is guaranteed by G. G pays C
P10,000.00 without the knowledge of D.
d. D owes C P10,000.00. The obligation is guaranteed by G. X pays C
P10,000.00 without the knowledge of D.

23. D stole the carabao of C. D was arrested, tried in court and convicted. Aside
from being sentenced to a prison term, D was also orderd by the court to return
the carabao. However, the carabao died before D could deliver it to C.
a. D is not liable to C if the cause of the death of the carabao is a fortuitous event
b. D is liable to C only if the carabao died because of D’s fault
c. D is liable to C whatever may be the cause of death of the carabao
d. D has no liability to C whatever may be the cause of death of the carabao
because his obligation to return the carabao was due to an order of the court and
not on his own volition.