ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY

CPA Review Batch 41 Ÿ May 2021 CPA Licensure Examination Ÿ Quizzer

REGULATORY FRAMEWORK for BUSINESS TRANSACTIONS Atty. J. Domingo Ÿ Atty. N. Soriano

RFBT-01Q: OBLIGATIONS

1. If the obligation is to give an indeterminate or generic thing, what right is available to the creditor which is not
available if the obligation is to give a determinate thing?
A. To compel specific performance
B. To ask that the obligation be complied with at the expense of the debtor
C. To recover damages in case of breach
D. To ask for rescission
2. In obligations to give a determinate thing, what degree of diligence must be exercised in taking care of the thing?
A. Diligence of a good father of a good family
B. Diligence of a father of a good family
C. Diligence of a good father of a family
D. Extra-ordinary diligence
3. Anjo bound himself to deliver to Ederick a 21-inch 1983 model TV set, and the 13 cubic feet Kelvinator refrigerator
with motor number KEL-234, which Ederick saw in Anjo’s store, and repair Ederick’s piano. Anjo did none of these
things. What may the court compel Anjo to deliver or perform?
A. Refrigerator only
B. TV set and refrigerator only
C. TV set and repair of piano only
D. TV set, refrigerator and repair of piano
4. How is dolo causante different from dolo incidente?
A. The first is employed for the purpose of evading the normal fulfillment of an obligation, while the second is
employed for the purpose of securing the consent of the other party to enter into the contract.
B. The first results in the non-fulfillment or breach of the obligation, while in the second, if it is the reason for the
other party upon whom it is employed for entering into the contract, results in the vitiation of his consent.
C. The first gives rise to a right of the creditor or obligee to recover damages from the debtor or obligor, while the
second gives rise to a right of the innocent party to ask for the annulment of the contract.
D. The first is present only at the time of the birth of the obligation, while the first is present only during the
performance of the pre-existing obligation.
5. How is culpa contractual different from culpa acquiliana?
A. In the first, there is a pre-existing contractual relation. In the second, there is none.
B. In the first, the negligence is substantive and independent. In the second, it is merely an incident in the
performance.
C. In the first, the source of the liability is the defendant’s negligent act or omission itself. In the second, the source
is the defendant’s breach of contract.
D. In the first, the negligence of the defendant must be proved. In the second, proof of the contract and of its
breach is sufficient prima facie to warrant recovery.
6. Taxi driver D, driving recklessly, killed pedestrian P and his passenger Y. What is the nature of liability of D’s
employer under the Revised Penal Code?
A. Direct C. Subsidiary
B. Primary D. Solidary
7. What condition must concur in order that the obligor or debtor shall be exempted from liability by reason of a
fortuitous event?
A. The event must be either foreseeable or avoidable.
B. The cause of the breach of the obligation must be independent of the human or of the will of the debtor.
C. The event must be such as to render it possible for the debtor to fulfill his obligation in a normal manner.
D. The debtor must have participation in, or aggravation of the injury to the creditor.
8. Ariel was injured while he was a passenger in a bus operated by X Co. The proximate cause of the accident was a
tire blowout causing the driver to lose control of the wheel as a result of which the bus fell into a ditch. Can the
operator now relieve itself of liability by claiming that the real cause of the accident was a fortuitous event?
A. No, tire blowouts cannot be classified as fortuitous event per se within the meaning of the law.
B. Yes, tire blowout under this circumstance is considered a fortuitous event.
C. Yes, whether the tire blowout is a fortuitous event or not, X Co. remains liable.
D. No, it is the tire manufacturer which is liable.
9. Ren constructed a windmill system for Alex for P20,000. Alex made a downpayment of P10,000 and an installment
payment of P5,000, leaving a balance of P5,000. Alex refused to pay the balance because the windmill system
collapsed after a strong wind hit the place. Is Ren exempt from liability due to fortuitous event?
A. Yes, a strong wind in this case can be fortuitous, unforeseeable or unavoidable.
B. Yes, Alex’s refusal to pay the balance relieves Ren of his liability.
C. No, the windmill system would not have collapsed had there been no inherent defect in it which could only be
attributable to Ren.
D. No, Ren remains liable until he receives the balance payment.
10. If the fulfillment of the condition depends exclusively upon the will of the debtor, the conditional obligation shall
be:
A. Void C. Voidable
B. Valid D. Unenforceable

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY RFBT-01Q
Quizzer: LAW ON OBLIGATIONS

11. It the fulfillment of the condition depends exclusively upon the will of the creditor, the conditional obligation shall
be:
A. Void C. Voidable
B. Valid D. Unenforceable
12. In case of an obligation subject to a suspensive condition, what is the effect if the object of the obligation is lost
without the fault of the debtor during the pendency of the condition?
A. The obligation is extinguished.
B. The obligation is not extinguished.
C. The loss shall be borne by the debtor.
D. The loss shall be borne by the creditor.
13. In case of an obligation subject to a suspensive condition, what is the effect if the object of the obligation is lost
through the fault of the debtor during the pendency of the condition?
A. The creditor shall be liable to pay damages.
B. The debtor shall be liable to pay damages.
C. The obligation is extinguished.
D. The obligation is not extinguished.
14. In case of an obligation subject to a suspensive condition, what is the effect if the object of the obligation is
improved at the expense of the debtor during the pendency of the condition?
A. The debtor shall have no other right than that granted to the usufructuary.
B. The improvement shall inure to the benefit of the creditor.
C. The improvement shall inure to the benefit of the debtor.
D. The debtor shall be entitled to reimbursement of reasonable expense.
15. If one of the obligors in reciprocal obligations should not comply with what is incumbent upon him, what is the
remedy of the injured party?
A. He may choose between the fulfillment and the rescission of the obligation with the payment of damages in
either case.
B. He may ask for the fulfillment of the obligation only.
C. He may ask for the fulfillment of the obligation with damages only.
D. He may ask for the rescission of the obligation only.
16. What is the effect of a fortuitous event upon the term or period agreed upon?
A. It stops the running of the term or period agreed upon.
B. It extinguishes the obligation.
C. It relieves the contracting parties from the fulfillment of their respective obligations during the pendency of the
event.
D. It entitles the creditor to damages.
17. If the obligation does not fix a period but from its nature and circumstances it can be inferred that a period was
intended by the parties, who is/are empowered to fix the duration of the term or period?
A. The courts C. The creditor
B. The debtor D. Both the debtor and the creditor
18. In alternative obligations, who has the right to choose or select the object to be delivered or the prestation to be
performed among those which are alternatively due?
A. As agreed by the parties C. The creditor
B. The debtor D. Third person
19. In facultative obligations, if the substitute is lost or destroyed through the fault of the debtor, is he liable for
damages?
A. If loss or destruction took place after the substitution, no; if before, yes.
B. No, regardless whether the loss or destruction took place before or after the substitution.
C. Yes, regardless whether the loss or destruction took place before or after the substitution.
D. If loss or destruction took place after the substitution, yes; if before, no.
20. Three persons execute a promissory note promising to pay their indebtedness to their common creditor within a
stipulated period without declaring that they are liable solidarily. Can one of them be compelled to pay the entire
obligation?
A. No, the obligation is joint.
B. No, the obligation is solidary.
C. Yes, the obligation is joint.
D. Yes, the obligation is solidary.
21. What is the effect of a total remission of a solidary obligation effected by the solidary creditor upon the obligation
itself?
A. The obligation is partially extinguished.
B. The entire obligation is extinguished.
C. The remission is void.
D. The remission is voidable.
22. In case of payment by cession, the ownership over the properties to be sold belongs to:
A. The debtor
B. The creditor
C. Jointly by the debtor and the creditor

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY RFBT-01Q
Quizzer: LAW ON OBLIGATIONS

D. Co-ownership between the debtor and the creditor is established.

23. If impossibility of performance of the obligation has already existed when the contract was made, the contract is:
A. Valid C. Void
B. Voidable D. Unenforceable
24. Dennis is a warehouseman. Kenneth deposits 100 kilos of rice with Dennis. Kenneth owes Dennis 100 kilos of rice.
Who can claim compensation?
A. Only Kenneth can claim compensation.
B. Only Dennis can claim compensation.
C. Both Kenneth and Dennis can claim compensation.
D. No one can claim compensation.
25. Adrian borrowed from Rachelle P200 which amount Rachelle failed to collect. After the debt had prescribed, Adrian
voluntarily paid B who accepted the payment. After a few months, being in need of money, Adrian demanded the
return of the P200 on the ground that there was a wrong payment, the debt having already prescribed. Rachelle
refused to return the amount paid. May Adrian succeed in collecting if he sues Rachelle in court?
A. No, Adrian performed a civil obligation.
B. Yes, the debt clearly has prescribed.
C. Yes, because Adrian is in need of money.
D. No, Adrian performed a natural obligation.
26. Taxi driver D, driving recklessly, killed pedestrian P and his passenger Y. What is/are the sources of D’s obligation?
A. Culpa criminal only
B. Culpa criminal and culpa contractual
C. Culpa criminal and culpa acquiliana
D. Culpa criminal, culpa acquiliana and culpa contractual
27. Taxi driver D, driving recklessly, killed pedestrian P and his passenger Y. Can D’s employer relieve himself of
liability arising from quasi-delict?
A. Yes, if he proved that he was not inside the taxi when the incident happened.
B. Yes, if he proved due diligence of a good father of a family in the selection and supervision of D.
C. Yes, if he did not authorize the killing committed by D.
D. No, because the liability of D and his employer cannot be separated.
28. Taxi driver D, driving recklessly, killed pedestrian P and his passenger Y. If the heirs of Y sue for breach of contract
(culpa contractual), against whom can it be brought?
A. D’s employer only C. D and his employer
B. D only D. None of the two
29. When can the obligor or debtor be held liable for breach of the obligation by reason of a fortuitous event?
A. Where such liability is expressly specified by the law
B. Where such liability is not declared by stipulation of the parties
C. Where the nature of the agreement does not require the assumption of risk
D. In case of loss and destruction of a determinate thing due
30. Suppose that the debtor executed a promissory note promising to pay his obligation to the creditor as soon as he
has received funds derived from the sale of his property in a certain place. The condition is:
A. Potestative C. Suspensive
B. Casual D. Mixed
31. In case of an obligation subject to a suspensive condition, what is the effect if the object of the obligation
deteriorates without the fault of the debtor during the pendency of the condition?
A. The impairment is to be borne by the debtor.
B. The impairment is to be borne by the creditor.
C. The obligation is extinguished.
D. The obligation is not extinguished.
32. In case of an obligation subject to a suspensive condition, what is the effect if the object of the obligation
deteriorates through the fault of the debtor during the pendency of the condition?
A. The debtor may choose between rescission or fulfillment with indemnity for damages.
B. The creditor may ask for rescission only.
C. The creditor may ask for fulfillment with damages only.
D. The creditor may choose between rescission or fulfillment with indemnity for damages.
33. In case of an obligation subject to a suspensive condition, what is the effect if the object of the obligation is
improved by its nature or by time during the pendency of the condition?
A. The improvement shall inure to the benefit of the creditor.
B. The improvement shall inure to the benefit of the debtor.
C. The improvement shall inure jointly to the benefit of the debtor.
D. The creditor shall be liable to compensate the debtor for such improvement.
34. Suppose that both parties in reciprocal obligations have committed a breach thereof, who shall be liable?
A. The second infractor
B. Both infractors
C. The first infractor, but his liability will be equitably tempered
D. The first infractor with absolute liability
35. To whose benefit is a period presumed to be designated?

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ReSA – THE REVIEW SCHOOL OF ACCOUNTANCY RFBT-01Q
Quizzer: LAW ON OBLIGATIONS

A. Of both the creditor and the debtor

B. Of the creditor only
C. Of the debtor only
D. None of them
36. Marivic borrowed P5,000 from Chona in February 2016. The debt is evidenced by a promissory note executed by
Marivic wherein she promised to pay as soon as she has money or as soon as possible. Chona has made repeated
demands upon Marivic for payment, but up to now no payment has been made. What is Chona’s remedy?
A. Continue on demanding Marivic to pay until the latter pays her debt.
B. Ask the court to fix the duration of the term or period.
C. The debt is extinguished due to Marivic’s inability to pay.
D. Ask Marivic for a definite date of payment.
37. When are the parties bound by the choice or selection?
A. From the moment the choice or selection was made
B. From the moment of creation of the obligation
C. From the moment the thing chosen or selected is given or performed
D. From the very moment that it has been communicated by the party who has the right to make it to the other
party
38. If one of the solidary debtors pays the entire obligation, is such debtor subrogated to all of the rights the creditor?
A. No, the solidary debtor can only demand reimbursement from his co-debtors.
B. Yes, the solidary debtor steps into the shoes of the creditor.
C. No, the solidary debtor already assumed the risk of not being paid or reimbursed.
D. Yes, if there is consent of the creditor.
39. What is the extent of extinguishment of obligation in case of dation in payment?
A. Entire obligation unless there is a contrary agreement
B. Up to the value of thing delivered unless there is a contrary agreement
C. Up to 80% of the value of the thing delivered unless there is an express agreement
D. Up to 80% of the value of the obligation unless there is an express agreement
40. What must be the form of payment?
A. In the currency stipulated
B. Legal tender in the Philippines
C. In whatever currency, at the option of the creditor
D. In whatever currency, at the option of the debtor

ANSWER KEY
1. B 6. C 11. B 16. C 21. B 26. D 31. B 36. B
2. C 7. B 12. A 17. A 22. A 27. B 32. D 37. D
3. A 8. A 13. B 18. A 23. C 28. A 33. A 38. A
4. D 9. C 14. A 19. D 24. A 29. A 34. C 39. B
5. A 10. A 15. A 20. A 25. D 30. D 35. A 40 A

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