NAME: ________________________________________

1. When the debtor binds himself to pay when his means permit him to do so, the obligation is:
a. Conditional c. Simple
b. Pure d. With a Period

2. 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

3. 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

4. Which of the following is not an element of legal compensation?

a. Debts to be compensated are due and demandable c. There are two or more debts of the same kind
b. There is controversy or adverse claim over any debts to be d. There are two or more persons who are creditor or debtors of
compensated each other.

5. A was employed as professional driver of B transit Bus owned by C. In the course of his work, A hit a concrete post causing serious injury to
passenger W and pedestrian Y. the victims sued the driver and the owner of the bus for damages. Which of the following statements is correct?
a. C is not liable if C can prove that he exercised the diligence of a good father of a family in the selection and supervision of his employees
b. The conviction of A in a criminal case makes C liable for damages arising from criminal act
c. The liability of C shall cease if the driver A is acquitted in the criminal case
d. The guilt of driver A must be established beyond reasonable doubt to make C liable

6. S, a supplier of fresh fish from Cebu City hired T, the owner of a trucking company, for a fee of P3 000 to bring the fish of S to the Dampa Market in
Mandaue City which ordered the fish for a price of P20 000. In so far as S is concerned, his prestation in his contract with T is
a. The sale of the fish c. The payment of P3 000
b. The transport of the fish d. The payment of P20 000

7. P took a public bus in going to his office. Although P paid his fare, the bus did not issue him a ticket. Along the way, the bus met an accident causing
a slight injury to P and other passengers. If P is to recover damages from the bus owner, the source of the bus owner’s liability is
a. Contract c. Law
b. Quasi delict d. P cannot recover any amount because no ticket was issued

8. D is obliged to give C P10 000 if X dies. This is an example of

a. An obligation with a suspensive period c. An obligation with a period
b. An obligation with a resolutory period d. A pure obligation

9. D is obliged to give C a specific car if C passes the CPA Licensure Examination. D’s obligation is an example of
a. A pure obligation c. An obligation with a resolutory condition
b. An obligation with a suspensive condition d. An obligation with a period

10. Consignation alone, as a special form of payment, may extinguish an obligation under any of the following instances. Which is the exception?
a. When the creditor is absent, or is unknown or does not d. When there are two or more persons claiming title to one
appear in the place of payment. and the same obligation
b. When the creditor is capacitated to receive payment e. When title to the same obligation has been lost
c. When the creditor refuses to issue receipts

11. Statement no. 1: “I will give you 10,000.00 if you will not marry X this year”. If by the end of the year, X entered the convent, my obligation is
extinguished.
Statement no. 2: “I will give you 10,000.00 when my means permit me to do so”. This is a conditional obligation for the benefit of the debtor.
a. Both are true c. No. 1 is true; no. 2 is false
b. Both are false d. No. 1 is false; no. 2 is true
12. L entered into a contract of lease with X. T, the clerk of L, typed the document. Due to T’s negligence, the document made was that of sale instead of
lease.
a. The remedy is annulment c. Parties may enforce their right because it is enforceable
b. Parties may go to court for interpretation d. None of the above

13. S offers to sell his house to B for P100, 000. B asks him if he would accept P80, 000. Which of the following is correct?
a. Because of ambiguity, both offers are terminated by operation of c. B’s response is a more inquiry, the P100, 000 offer by S is
law. still in force.
b. B’s response is a counter- offer effectively terminating the P10, d. B’s response is a rejection of the P100, 000 offer, and there is no
000 offer and instigating an offer for P80, 000. offer for P80, 000 because it is too indefinite to be an offer.

14. D forced C to lend him P10, 000. The promissory note is in writing.
a. The contract is rescissible because the contract is c. The contract is void
fraudulent d. C cannot demand payment from D because the contract is
b. Contract remains to be valid unenforceable

15. In a contract of sale executed by S and B, it appears S sold his motor vehicle to B and B bought it for P10, 000. It turned out however, S has three
motor vehicles. Gallant valued P80, 000: Hi-Ace van valued P70, 000; and a Jeep valued P60, 000. Which of the following is correct?
a. The contract shall be reformed because there was c. There is no contract.
mistake d. The parties can ask for annulment of the contract
b. The parties can ask for interpretation because the
word Motor vehicle is ambiguous.

16. DR promised to give DE, his grandson, a car if the latter will pass the bar examinations. When his grandson passed the said examinations, which of
the following statement is true?
a. DR may refuse to deliver because the condition is purely a c. Both the obligation and the condition are ineffective because they
potestative one. depend upon the sole will of the donor.
b. The obligation is valid because the condition depends upon the d. The obligation is valid although potestative because they
sole will of the debtor. depend upon the sole will of the done.

17. 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 c. A is obliged to pay to X 60,000.00
b. A is obliged to pay to X 30,000.00 d. A is obliged to pay to X 10,000.00

18. “I’ll give you my car one year after your death.” The obligation is

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 a. Valid because the event is sure to come c. Valid, the obligation is conditional
b. Void, not legally possible d. Valid, but disregard the condition.

19. 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 his obligation, from thereon he is considered in default without the need of a
demand.
a. Both are true c. No. 1 is true; No. 2 is false
b. Both are false d. No. 1 is false; No. 2 is true

20. Conrad and Charlie are jointly indebted to Pete for 100,000.00. Pete assigned his interest to Crispin who assigned it back Conrad.
a. The debt is totally extinguished by compensation c. The debt is partially extinguished by compensation
b. The debt is totally extinguished by merger d. The debt is partially extinguished by merger

21. A is indebted to B for 20,000.00. X is the guarantor of A. B is also indebted to A for 8,000.00. how much will X be liable as guarantor if B sues A,
and cannot pay?
a. 12,000.00 c. 8,000.00
b. 20,000.0 d. X has no liability

22. Statement no. 1: The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be of the same value or more
valuable than that which is due.
Statement no. 2: In dation in payment, ownership of the thing delivered is transferred to the creditor; while in cession, it merely authorizes the
creditor to convert the property into cash and out of the proceeds to extinguish the obligation partially.
a. Both are true c. No. 1 is true; No. 2 is false
b. Both are false d. No. 1 is false; No. 2 is true

23. I will give you specific car if you will marry X this year, 2018. Which of the following statement in incorrect?
a. If on December 25, X died, without marriage, my obligation is effective because one party is dead, marriage is
impossible to take place.
b. If on December 25, X died, without marriage, my obligation is extinguished because one party is dead. Marriage is
impossible to take place.
c. If the year has ended, no marriage taking place, both parties are alive, just the same my obligation is extinguished because
the time indicated has already elapsed
d. If you marry X on December, my obligation is to give you the car

24. Statement no. 1: Merger taking place in the person of the guarantor shall extinguish only the secondary contract such as the contract of guaranty but
not the principal obligation.
Statement no. 2: when the debtor promises to pay his obligation “whenever his means permit him to do so” the obligations is with a period.
a. Both statement are true d. Statement no. 1 is false while statement no. 2 is
b. Both statement are false true
c. Statement no. 1 is true while statement no. 2 is
false

25. D obliged himself to give a specific car to C on December 25, 2006, stipulating that D is liable even if the thing is lost due to fortuitous event, and
without the need of a demand. On the due date, the car got lost due to fortuitous event. Which of the following is correct?
a. Obligation remains to subsist, but converted c. C can require another person to deliver a car,
into monetary consideration expenses chargeable to D.
b. C can compel D to deliver another car d. Obligation is totally extinguished

26. Statement no. 1: The debtor of a thing cannot compel the creditor to receive a different one, although the latter maybe of the same value or more
valuable than that which is due.
Statement no. 2: In dation of payment, ownership of the thing delivered is transferred to the creditor; while cession, It merely authorize the creditor to
convert the property into cash and out of the proceeds to extinguish the obligation partially.
a. Both are true c. No.1 is true, no. 2 is false
b. Both are false d. No.1 is false, no.2 is true

27. A is obliged to give B his only car on September 1, 2006. On the said date, A did not deliver. On September 2, 2006, an earthquake completely
destroyed the car. Is A still liable?
a. No. Considering that no demand to deliver was made by B and the specific thing was lost due to fortuitous event, the
obligation is extinguished.
b. No. the obligation is extinguished, even if the debtor is already in default because the debtor can plead impossibility of
performance
c. Yes. A is already in legal delay thus the obligation to deliver the lost specific thing is converted into monetary claim for
damages.
d. Yes. The creditor can instead demand for a substitute of equivalent value from the debtor.

28. A sold his cow to B for 2,500.00. No date was stipulated for the delivery of the cow. While still in the possession of A, the cow gave birth to a calf.
a. A is entitled to the calf because it was born before his obligation to deliver the cow arises.
b. A is entitled to the calf as B has not paid the price
c. B is entitled to the calf which was born after the perfection of the contract
d. B, in order to be entitled to the calf, should pay additional cost for the calf to be agreed upon by both parties.

29. Statement No. 1: If the cause is not stated in the contract it is presumed that it is unlawful.
Statement No. 2: the action for rescission is subsidiary, it cannot be instituted except when there is no other legal means to obtain reparation for
damages suffered.
a. Both are true c. No. 1 is true; No. 2 is false
b. Both are false d. No. 1 is false; No. 2 is true

30. Reluctantly and against her good sense and judgment, Rosemarie entered into a contract for the delivery of 5 tables to Corazon for a price of P15, 000.
Contract is:
a. Void c. Unenforceable
b. Voidable d. Valid