Since 1977
BUSINESS LAW
BL.2801-Drill 1 - Obligation
1. Which is not considered as quasi contract?
a. Solutio indebiti \ creditor.
b. Negotiorum gestio
c. When the third person with the knowledge of the debtor,
pays the debt
d. Reimbursement due the person who saved property during
fire or typhoon without the knowledge of the owner.
2. When A voluntarily takes charge of the neglected business of B
with the latter’s authority where reimbursement must be made
for necessary and useful expenses, there is a: 9.
a. Contract of agency c. Negotiorum Gestio
b. Quasi contract d. Solutio Indebiti
3. Roy and Carlos both undertook a contract to deliver to Sam in
Manila a boat docked in Subic. Before they could deliver it,
however, the boat sank in a storm. The contract provides that
fortuitous event shall not exempt Roy and Carlos from their
obligation. Owing to the loss of the motor boat, such obligation
is deemed converted into one of indemnity for damages. Is the
liability of Roy and Carlos joint or solidary? (2011 Bar) 10.
a. Neither solidary nor joint since they cannot waive the
defense of fortuitous event to which they are entitled.
b. Solidary or joint upon the discretion of Sam.
c. Solidary since Roy and Carlos failed to perform their
obligation to deliver the motor boat.
d. Joint since the conversion of their liability to one of
indemnity for damages made it joint.
4. Rudolf borrowed P1 million from Rodrigo and Fernando who
acted as solidary creditors. When the loan matured, Rodrigo
wrote a letter to Rudolf, demanding payment of the loan
directly to him. Before Rudolf could comply, Fernando went to
see him personally to collect and he paid him. Did Rudolf
make a valid payment? (2011 Bar)
a. No, since Rudolf should have split the payment between
Rodrigo and Fernando.
b. No, since Rodrigo, the other solidary creditor, already 11.
made a prior demand for payment from Rudolf.
c. Yes, since the payment covers the whole obligation.
d. Yes, since Fernando was a solidary creditor, payment to
him extinguished the obligation.
5. A, B and C are joint and several liable to D amounting to
P900,000. D allows C an extension of two years within which
to pay his portion of the indebtedness. In this case:
a. D can compel A or B to pay him the entire P900,000.
b. D can compel A or B or C to pay him P600,000.
c. D can demand only P300,000 each from A and B.
D can compel only A or B to pay him P600,000.
6. Obligations may arise from any of the following, except:
a. Contracts c. Law.
b. Quasi-contracts. d. Prestation.
7. One of the following is a void obligation:
a. D is obliged to give C P5,000.00 if C does not go to the
moon. 12.
b. D is obliged to give C P5,000.00 if D goes to Baguio
c. D is obliged to give C P5,000.00 if C goes to Baguio
d. D is obliged to give C P5,000.00 if D wins first prize in the
sweepstakes on a ticket that he had already
purchased.
8. An obligation ceases to be alternative and becomes a simple 13.
obligation in the following cases, except:
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ATTY.ONG/LOPEZ
MAY 2020
a. when the debtor has communicated his choice to the
b. when the right of choice has been expressly granted to the
creditor and his choice has been communicated to the
debtor.
c. when among the several prestations that are due only one
is practicable.
d. when three prestations are due but one of them is unlawful
or impossible.
A natural obligation under the New Civil Code of the
Philippines is one which (2011 Bar)
a. the obligor has a moral obligation to do, otherwise entitling
the obligee to damages.
b. refers to an obligation in writing to do or not to do.
c. the obligee may enforce through the court if violated by
the obligor.
d. cannot be judicially enforced but authorizes the obligee to
retain the obligor’s payment or performance.
B, while drunk, accepted a passenger in his taxicab. B then
drove the tax recklessly, and inevitably, it crashed into an
electric post, resulting in serious physical injuries to the
passengers. The latter then filed a suit for tort against B's
operator, A, but A raised the defense of having exercised
extraordinary diligence in the safety of the passenger. Is his
defense tenable? (2011 Bar)
a. Yes, as a common carrier can rebut the presumption of
negligence by raising such a defense.
b. No, as in tort actions, the proper defense is due diligence in
the selection and supervision of the employee by the
employer.
c. No, as B, the common carrier's employee, was obviously
negligent due to his intoxication.
d. Yes, as a common carrier can invoke extraordinary
diligence in the safety of passengers in tort cases.
Lennie bought a business class ticket from Alta Airlines. As
she checked in, the manager downgraded her to economy on
the ground that a Congressman had to be accommodated in the
business class. Lennie suffered the discomfort and
embarrassment of the downgrade. She sued the airlines for
quasi-delict but Alta Airlines countered that, since her travel
was governed by a contract between them, no quasi-delict
could arise. Is the airline correct? (2011 Bar)
a. No, the breach of contract may in fact be tortious as when
it is tainted as in this case with arbitrariness, gross bad
faith, and malice.
b. No, denying Lennie the comfort and amenities of the
business class as provided in the ticket is a tortious act.
c. Yes, since the facts show a breach of contract, not a quasi-
delict.
d. Yes, since quasi-delict presupposes the absence of a pre-
existing contractual relation between the parties.
Which of the following is a primary classification of obliga-
tions under the Civil Code?
a. Real and personal obligations
b. Joint and solidary obligations
c. Unilateral & bilateral obligations
d. Civil and natural obligations
A, B and C solidary owe X P300,000. X remitted C’s share. A,
therefore, paid later only P200,000. Assuming that B is
insolvent.
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EXCEL PROFESSIONAL SERVICES, INC.
a. A can compel B to pay him P100,000.
b. A can recover reimbursement from C amounting to
P50,000
c. A can recover reimbursement from C amounting to
P100,000.
d. A can recover nothing from C at this moment and to wait
until B recover from financial distress.
14. Delay or default on the part of the obligor is known as –
a. mora solvendi ex re
b. mora accipiendi
c. mora solvendi ex persona
d. compensation morae
e. Mora solvendi
15. X bought a land from Y, paying him cash. Since they were
friends, they did not execute any document of sale. After 7
years, the heirs of X asked Y to execute a deed of absolute sale
to formalize the verbal sale to their father. Unwilling to do so,
X’s heirs filed an action for specific performance against Y.
Will their action prosper?
a. No, after more than 6 years, the action to enforce the
verbal agreement has already elapsed.
b. No, since the sale cannot under the Statute of Frauds be
enforced.
c. Yes, since X bought the land and paid Y for it.
d. Yes, after full payment, the action became imprescriptible.
16. The debtor shall lose the right to make use of the period in the
following cases, except:
a. when he becomes insolvent.
b. when he violates any undertaking in consideration of
which the creditor agreed to the period.
c. when the debtor attempts to abscond.
d. when he does not furnish any guaranty or security to the
creditor.
17. An obligation ceases to be alternative and becomes a simple
obligation in the following cases, except:
a. when the debtor has communicated his choice to the
creditor.
b. when the right of choice has been expressly granted to the
creditor and his choice has been communicated to the
debtor.
c. when among the several prestations that are due only one
is practicable.
d. when three prestations are due but one of them is unlawful
or impossible.
18. Which of the following is not a conditional obligation?
a. D to give C P1,000 if C passes the examination
b. D to pay C P1,000 if C has the means
c. D to give C a horse if C marries X
d. None of the above.
19. Which of these is not a conditional obligation?
a. D is to pay C P1,000,000 if he finishes his LL.B. at the
V.P. College of law.
b. D will pay C P500,000 as soon as his financial means will
permit him to do so.
c. D is to pay C P2,000,000 ten days after his 80th birthday.
d. D will pay C P1,000,000 twenty days after he passes the
C.P.A. exams for October 2020.
e. None of the above.
20. D borrowed from C P100,000 with a penalty of 20% if not paid
on time. On due date, D was able to pay C the borrowed
amount. How much should D pay C?
a. P100,000 only
b. P100,000 + 20%
c. P100,000 + 20% + interest
d. P100,000 + 20% + interest + damages
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21. D borrowed from C P1,000,000 mortgaging in favor of the
latter his house and lot. Said obligation is due December 15,
2020. On July 20,2019 the house was hit by a lighting and was
destroyed. In this case:
a. C can validly demand payment from D on July 20, 2019
because the latter losses the right to make use of the period
upon the impairment of the collateral.
b. C can validly demand payment from D on July 20, 2019
unless D gives another collateral equally satisfactory.
c. C cannot collect on July 20, 2019 because in the nature of
an obligation with a period the debt can only become
demandable upon the arrival of the period.
d. The obligation of D to C is extinguished because of the
loss of the collateral through a fortuitous event.
22. The following are either joint or solidary liability:
I. Liability of the principal and the agent when the former
allowed the agent to act as though he had full powers.
II. Liability of two or more persons who have appointed an
agent for a common transaction or undertaking.
III. Liability of two or more bailees to whom a thing is loaned
in the same contract.
IV. The responsibility of two or more agents who are
appointed simultaneously by the principal.
V. Responsibility of two or more officious managers.
a. The liability under I, II, III, IV and V are solidary
b. The liability under I, II, III and V are solidary.
c. The liability under II and IV are joint.
d. The liability under I, II, III and IV are solidary.
23. D, on June 19, 2019 obligated himself to C to sell to the latter
his house and lot for the very cheap price of P5,000,000 on
condition that C passes the CPA board examinations to be
given in October 2019. In the meantime, not believing that C
will pass the board exams, D sold the house to T sometime in
August 2019, In November 2019, C passed the exams
unexpectedly. Who has a better right to the house and lot?
Assume that C and T did not record their transaction with the
Registration of Deeds and neither did they take possession.
a. C has a better right to the house and lot because said right
goes back to the time when the obligation was contracted
on June 19, 2019 although the condition was complied
with only in November 2019.
b. T has a better right since it was sold to him in August,
2019 whereas the condition in favor of C was complied
only sometime in November 2019.
c. Because of the controversy between C and T can decide
not to sell the house and lot anymore.
d. Correct conclusion not given.
24. An obligation with a period:
a. D will pay C P1,000.00 X dies.
b. D will pay C P1,000.00 when X dies of TB.
c. D will pay C P1,000.00 when he finishes his course in
Business Administration.
d. None of the above
25. 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. 2020.
(Sgd.) Anna Almeda
(Sgd.) Belinda Bersoia
(Sgd.) Claudia Cabrera"
On June 30, 2020, Dolores Dominguez can collect from Anna
Almeda:
a. P10,000.00.
b. P30.000.00.
c. P20,000.00
d. Nothing, because the note is void since it says "I promise"
but was signed by three persons.
BL.2801