1. In an obligation to give a determinate thing which is subject to a
The condition shall be deemedd fulfilled if the debtor voluntarily
suspensive condition the creditor has a right to the fruits of the thing
upon the perfection of the obligation. FALSE
2. A person criminally liable is also a civilly liable. TRUE
3. Obligation arising from contracts have force the law between the
contracting parties. TRUE
4. A natural obligation cannot be enforced in a court of justice. TRUE
5. A person is obliged to give something is also obliged to take care of
it with the deligence of a father of a good family, unless the law or
stipulation of the partiees requires a grreater degree of cares.
FALSE
6. If the debtor fails to perform an obligation to do, the creditor may
compel the debtor to comply with the obligation. FALSE
7. If an obligation to do has been poorly done, the creditor may have
the same be undone at the expense of the debtor. TRUE
8. As a general rule the debtor incurs delay if he does not perform his
obligation on the date it is due. FALSE
9. If the obligation consist in the delivery of a determinate thing, the
debtor who incurs delay shall not be responsible for loss due to
fortuitous events. FALSE
10. A waiver of an action for fute fraud isa valid. FALSE
11. In an obligation to give an indeterminate thing the loss or
destruction of anything of the same kind will extinguish the
obligation if the cause of the loss is a fortuitous events. FALSE
12. Acts of men such as armed roberry or piracy are considered
fortuitous events if they occur independently of the debtors will.
TRUE
13. As a general rule, rights acquired in virtue of an obligation are not
transmissible. FALSE
14. An obligation subject to a resolutory condition is demandable at
once. TRUE
15. An obligation which is subject to a suspensive condition that is
potestative on the part of the debtor at the same time is valid.
FALSE
16. An obligation where the debtor binds himself to pay means permit
him to do so is a conditional obligation. FALSE
17. An obligation which is demandable upon the death of a person is
an obligation with a period. TRUE
18. The condition not to do an impossible thing shall be considered as
not having been agreed upon. In such a case, the oobligation is
immediately demandable. TRUE
19. The condition that some event happen at a determinate thing shall
extinguish the obligation as soon as the time expires or it has
become indubitable that the event will not take place. TRUE
20.
prevents its fulfillment. TRUE
21. The effects of conditional obligation to give, once the condition has
been fulfilled shall retroact to the day of the constitution of the
obligation. TRUE
22. A thing although it still physically exist , may be considereed lost if it
goes out of commerce. TRUE
23. In an obligation to give a determinate thing which is subject a
suspensive condition the detoriation of the thing without the debtors
fault shall render the debtor liable for damages. FALSE
24. A condition may refer to a past event unknown to the parties. TRUE
25. If the thing is improved at the expense of the debtor before the
fulfillment of a suspensive condition, the debtor may demand
reimbursement of such expense from the creditor. FALSE
26. Whenever a period is designated in an obligation, it shall be
presumed to have been established for the benefit of the
debtor.FALSE
27. The debtor does not lose the right to make use of the perioid if the
security that he has given is lost due to a fortuitus event. FALSE
28. The period in an obligation always refer to the future. TRUE
29. In alternative obligations, the right of choice belongs to the creditor
unless it has been expressly granted to the debtor. FALSE
30. In alternative obligations, the creditor may be compelled to receive
part of one and part of another undertaking. FALSE
31. In a facultative obligation, the loss of the substitute through
fortuitous event before the substitution has been made by the
debtor, shall have no effect on the debtor’s obligation to deliver the
principal thing . TRUE
32. When there are two or more debtorsand or two or more creditors in
one and the same obligation the obligation is presumed to be a
solidary obligation. FALSE
33. Solidarity may exist although the creditors and debtors may not be
bound in the same manner and by the same periods and
conditions. TRUE
34. Where an instrument containing the words “I promised to pay” is
isgned by two or more persons, they are deemed to be jointly and
severally liable. TRUE
35. In a joint indivisible obligation, a demand made by one of the joint
creditors against all the joint debtors is a valid demand. FALSE
36. A solidary debtor who obtains remission of the whole obligation is
entitled to reimbursement from his co-debtors. FALSE
37. A solidary creditor may assign his rights in the obligation without the
consent of the other creditors. FALSE
38. If an insolvent solidary debtor cannot reimburse his share to the
debtor paying the obligation sush share shall be borne by all his co-
dedbtors in proportion to the debt of each. TRUE
39. A joint creditor in a joint indivisible obligatio, may validly renounce
or cordone the whole obligation. FALSE
40. In obligations with a penal clause, the penalty shall substitute the
indemnity for damages and the payment of interest, if there is no
stipulation to the contrary. TRUE
41. The nullity of the penal clause is an obligation carries with it the
nullity of the principal obligation. FALSE
42. As a rule, the creditor may demand fulfillment of the obligation and
the penalty at the same time. FALSE
43. Payment means not only the delivery of money but also to the
performance of the obligagtion in any other manner. TRUE
44. A third person who has an interest in the fulfillment of the obligation
such as a guarantor may compel the creditor to accept payment.
TRUE
45. Payment made in a good faith by the debtor to a person in
possession of the credit releases him from liability. TRUE
46. Payment made for an obligation before the interest must first be
applied to the principal before the interest. FALSE
47. Payment to an incapacitated creditor shall be valid if he has kept
the payment. TRUE
48. The debtor of a thing may compel the creditor to accept a different
one if the latter is more valuable than that which is due. FALSE
49. If an obligation is physically divisible the debtor may compel the
creditor to accept partial payments. FALSE
50. When the debt is in part liquidatedd and part unliquidated the
creditor may demand and the debtor may effect the payment of the
former witout waiting for the liquidation of the latter. TRUE
51. The debtor may compel the creditor to accept a certified check as
payment since the bank guarantees the ccheck to be covered with
sufficient funds. FALSE
52. Payment by a third person who does not intended to be reimbursed
by the debtor shall be deemed to be a donation which requires the
consent of the debtor. However, even if the debtor does not give his
consent , payment shall nevertheless be valid with respect to the
creditor. TRUE
53. Payment may be applied to a debt not yet due if the term was
constitued in favor of the party making the application. TRUE
54. For dacion en pago to apply the debtor must be insolvent. FALSE
55. In payment by cession, the creditors become the owners of the
properties abandoned by the debtor for the payment of his debts.
FALSE
56. Whenever the thing is lost while the possession of the debtor, it
shall be presumed to have been lost through his fault. TRUE
57. The debtor shall be released totally from his debts when he assigns
his properties to hid creditors. FALSE
58. Consignation without tender of payment is sufficient if two or more
persons claim the same right to collect. TRUE
59. Before the court has declared that the consignation has been
properly made or the creditor has accepted the consignation the
debtor may withdraw the sum of the thing deposited in court as a
matter of right. TRUE
60. When the debt of a thing certain proceeds from a criminal offense,
the debtor shall be exemptyed from the payment of the price if the
thing is lost through fortuitous event. FALSE
61. In an obligation to do, the debtor’s obligation is extinguished if the
prestation becomes physically impossible due to his fault. FALSE
62. The condonation or remission of an obligation must be accepted in
order for it to be extinguished. TRUE
63. Merger which takes place in the person of the principal debtor or
creditor extinguishes the obligstion of guaranty. TRUE
64. A debt which consist in sum of money and another debt which
consist in a sonsumable thing are extinguished by legal
compensation as long as both debts have the same amount and
are already due.FALSE
65. The condonation of a debt in money exceeding P5000, to be valid
requires that the condonation and the acceptance must be in public
instrument. FALSE
66. The remission of the principal obligation carries with it the remission
of the accessory obligation. TRUE
67. Confusion which takes place in the person of the guarantor
extinguishes the principal obligation. FALSE
68. The parties may agree upon the compensation of debts that are not
yet due. TRUE
69. Legal compensastion takes place by operation of law even if the
debts are payable at different places. TRUE
70. Compensation cannot be set up against a creditor who has claim
for support by gratuitous title. TRUE
71. Novation may take place by changing the object or principal
conditions of the obligation. TRUE
72. If the old obligation is void, the novation will still be valid if the new
obligation is valid. FALSE
73. If the new obligation is void, the original one shall subsist, unless
the parties intended that the old obligation shall be extinguished in
any event. TRUE
74. Conventional subrogation requires the consent of the original
parties and the third person. TRUE
75. When the principal obligation is extinguished as a consequence of
novation, accessory obligations are extinguished except if they may
benefit third persons who did not give their consent. TRUE
76. The determination of the performance of a contract may be left to a
third person, whose decision shall not be binding until it has been
made known to both contracting parrties. TRUE
77. A contract entered into in the name of another without authority is
unenforceable against the latter. TRUE
78. Acceptance of a contract by letter or telegram does not bind the
offerer except from the time it come to his knowledge. TRUE
79. When the acceptance of a contract by letter or telegram the
contract is presumed to have been entred into in the place where
the offer was made. TRUE
80. The person making the offer may fix the time, place and amnner of
acceptance all of which must be complied with. TRUE
81. An offer made through an agent is accepted from the time
acceptance is communicated to the principal by the agent. FALSE
82. When the offerer is allowed the offeree a certain period to accept,
the offer may be withdrawn at any time before acceptance by
communicating such withdrawal except when the option is founded
upon a consideration. TRUE
83. Business advertisements of things for sale are definite offers unless
its appears otherwise. FALSE
84. Contracts entered into during a lucid interval are valid. TRUE
85. A simple mistake in the computaion in a contract will render the
contract viodable. FALSE
86. There is no mistake in a contract if the party alleging it knew the
doubt, contingency or risk affecting the contract. TRUE
87. Mutual error as to the legal effect of an agreement even if the real
purpose of the parties is frustated does not vitiate consent since
ignorance of the law excuses no one from compliance therewith.
FALSE
88. A threat to enforce one’s claim throughcompetent authority
although the claim is just or legal is intimidation and vitiate consent.
FALSE
89. Violence or intimidation employed by a third person upon a
contracting party does not vitiate consent. FALSE
90. The contract is no considered voidable if both parties employedd
fraud to obtain consent. TRUE
91. Failure to diclose facts when there is a duty to reveal them as when
the parties are bound by confidential relations does not constitute
fraud. FALSE
92. The usual exaggerations in trade, when the other party has an
opportunity to know the facts, are not in themselves fraudulent.
TRUE
93. A mere expression of an opinion does not signify fraud if not made
by an expert although the party hass relied on the knowledge of the
said person expressing the opinion. TRUE
94. Misrepresentation by a third person does not vitiate consnet unless
such mirepresentation has created substantial mistake and the
same is mutual. TRUE
95. Incidental fraud does not render a contract voidable but only obliges
the person employing it to pay damages. TRUE
96. A relatively simulated contract is void. FALSE
97. As a rule, future inheritance may not be the object of contract.
TRUE
98. The fact that the quantity of the object of a contract is not
determinate does not affect the validity of a contract provided that it
is possible to determine the same, without the need of a new
contract between the parties. TRUE
99. The illegality of the motive of a party to a contract renders the
contract void. FALSE
100. Although the cause is not stated in the contract it is presumed that
it exist and is lawful, unless the debtor proves the cotrary. TRUE
101.If the contract is required to be in a certain from for its perfection,
that form is indispensable and if it is not followed the contract is
void. TRUE
102.In order that reformation of a contract may be availed of by a party
there should be a meeting of minds of the parties to the contract.
TRUE
103.Reformation is not available if the contract is void. TRUE
104.When one party has brought an action to enforce the instrument he
cannot subsequently ask for its reformation. TRUE
105. If the terms of a contract are clear and leave no doubt upon the
intention of the contraction parties, the literal meaning of the
stipulation shall control. TRUE
106.The interpretation of obscure words or stipulations in a contract
shall not favor a party who caused the obscurity. TRUE
107.The action for rescission is subsidiary; therefore, it cannot be
institutedd by a party if there are other legal menas to obtain
reparation for the damages he suffered. TRUE
108.Rescission of a contract shall be only to the extent necessary to
cover the damages caused. TRUE
109.Rescission cannot be carried out if the one seeking rescission
cannot return whatever he may be obliged to restore. TRUE
110.Rescission cannot takes palce when the object of the contract is
legally in the possession of third person who acted in bad faith.
FALSE
111.Alienations by gratuitous title are presumed fraudulent if the donor
did not reserve sufficient property to pay off debt contracted before
the donation. TRUE
112.The action for rescission must be commenced wihin three
years.FALSE
113. A voidable contract is binding until it is annulled by a proper action
in court. TRUE
114.If a party ratifies a voidable contract he can still susbsequently ask
for its annullment. FALSE
115.Ratification requires the conformity of the contracting party who has
no right to bring the action for annullment. FALSE
116.Ratification cleanses the contract from all its defects from the
moment the ratification was made. FALSE
117. Annullment of a voidable contract is available only to those who
are obliged principally or sunsidiary; hence it cannot be availed of
by third persons.TRUE
118.When the defect of the contract consist in the incapacity of one of
the contracting parties, the incapacitaed person is obliged to make
restitution only to the extent that he has been benefited by the thing
or the price receivedd by him. TRUE
119. A contract whre both parties are incapable of giving consent is
voidable. FALSE
120.Contracts that are required to be in writing under the Statue of
Fraud may be enforced if benefits have been accepted under them.
TRUE
121.Unenforceable contracts cannot be assailed by third persons.
TRUE
122.A void contract may be ratified. FALSE
123.The right to set up the defense of illegality of a contract may be
waived. FALSE
124.The action or defense for the declaration of the inexistence or nullity
of a contract does not prescribe. TRUE
125.If an illegal contract constitutes a criminal offense and both parties
are guilty, both shall be criminally presecuted but they may keep
the object of the contract. FALSE
126.A party may recover if public interest will be subserved money or
property delivered by him for an illegal purpose, provided that he
repudiates the contract before the purpose has been accomplished.
TRUE
127.When the agreement is not illegal per se but is merely prohibited
and the prohibition by law is designed for the protection of the
palintiff, he may , if publiv policy is enhanced recover what he has
paid or delivered. TRUE
128.In case of a divisible contract , if the illegal terms can be separated
from the legal ones, the latter may be enforced. TRUE
129.The defense of illegality of contracts is not available to third person
whose interest are not directly affected. TRUE
130.A contract which is the direct result of a previous illegal contract is
also void and inexistence. TRUE
131.A party who employed violence,intimidation, undue influence or
fraud or who caused mistake may bring an action to annull the
contract of any such ground. FALSE
132.A contract is rendered voidable although a party gave his consent
because of a reasonable and well grounded fear of an imminent
and gave well upon the property of his descendant. TRUE
133.The donation by a person of his organ will take upon his death is
valid. TRUE
134.Reformation is a remedy availed of to express the real intent of the
parties to a ccontract whether oral or written. FALSE
135.Rescission cannot be availed of in the case of a last will and
testament. TRUE
136.Innominate contracts, not having any name under the law are void
because no law or rule governs them FALSE
137. Facio ut des and Do ut Facias are innominate contracs. TRUE
138. Human hair may validly be the object of a contract of sale TRUE
139. The donation by a mother of a part of her liver to be transpalnted to
his son is valid TRUE
140.
1. The creditor has a right that is enforceable against a definite passive
subject
PERSONAL RIGHT
2. It is a thing that is particularly designated or physically segregated from
all others of the same class.
DETERMINATE THING
3. Determinate thing
A TOYOTA CAR WITH ENGINE NO. 12345, BODY NO.34890 AND A PLATE NO. ABC
123
4. Demand must be made on the due date of the obligation in order for
delay to exist in one the following cases
WHEN THE OBLIGATION DOES NOT INDICATE WHETHER DEMAND MUST BE
MADDE OR NOT ON DUE DATE.
5. Delay on the part of the creditor
MORA ACCIPIENDI
6. There shall be no liability for loss due to fortuitous events
WHEN THE OBLIGATION IS TO DELIVER A DETERMINATE THING AND THERE WAS
NO STIPULATION AS TO THE LIABILITY OF THE DEBTOR IN CAS OF LOSS DUE TO
FORTUITOUS EVENTS
7. Following are the remedies of the creditor to pursue his claims against
the debtor.
COMPEL THE DEBTOR TO PERFORM THE SERVICE IN OBLIGATIONS TO DO
8. D borrowed P50,000.00 from C. C dies before he has collected the debt
leaving S, his son, as heir. Which of the following are CORRECT?
S CAN COLLECT FROM D ALTHOUGH D AND C DID NOT AGREE THAT THE CREDIT
RIGHT WILL PASS ON TO THEIR HEIRS OF C
9. D is obliged to give C a specific car if C passes the CPA Licensure
Examination.
OBLIGATION WITH A SUSPENSIVE CONDITION
10. Obligation is not immediately demandable
OBLIGATION WITH AN EX DIE PERIOD
11. Void Obligation
D IS OBLIGED TO GIVE C P5,000.00 IF D GOES TO BAGUIO
12. D is obliged to give C P10,000.00 if X dies
AN OBLIGATION WITH A PERIOD
13. When the debtors binds himself to pay when his means permit him to
do so
AN OBLIGATION WITH A SUSPENSIVE PERIOD
14. Whenever a period is designated in an obligation, the said period shall
be presumed to have been established for the benefit of
BOTH THE DEBTOE AND THE CREDITOR
15. The debtor shall lose the right to make use of the period in the
following cases, EXCEPT?
WHEN HE DOES NOT FURNISH ANY GUARANTY OR SECURITY TO THE CREDITOR
16. An obligation ceases to be alternative and becomes a simple obligation
EXCEPT?
WHEN THREE PRESTATION ARE DUE BUT ONE OF THEM IS UNLAWFUL OR
IMPOSSIBLE
17. D is obliged to give C a specific watch, specific ring, or a specific
bracelet. The parties agreed that C will have the right to choose the
thing which will be given to him. Before C could make his choice, the
watch and the ring are lost through D’s fault, successively. What is the
right of C?
C MAY CHOOSE THE DELIVERY TO HIM OF THE BRACELET, OR THE PRICE OF THE
WATCH OR THE PRICE OF THE RING PLUS DAMAGES
18. D is obliged to give a specific ring. The parties agreed that D may give a
specific bracelet as substitute. Which statement is TRUE?
IF THE RING IS LOST THROUGH A FORTUITOUS EVENT BEFORE SUBSTITUTION, THE
OBLIGATION IS EXTINGUISHED.
19. A, B, C and D are obliged to give V, W, X, Y and Z P20,000.00
V MAY COLLECT FROM A P1,000.00
20. A, B, C and D joint debtors are obliged to give V, W, X, Y and Z, solidary
creditors P20,000.00
V MAY COLLECT FROM B P5,000.00
21. A, B, C and D solidary debtors are obliged to give V, W, X, Y and Z, joint
creditors P20,000.00
V MAY COLLECT FROM C P 4,000.00
22. A, B, C and D solidary debtors are obliged to give V, W, X, Y and Z,
solidary creditors P20,000.00
V MAY COLLECT FROM D P20,000.00
23. A, 25, B, 35, and C, 17, are solidary debtors of X in the amount of
P9,000.00
X MAY COLLECT FROM A P6,000.00
24. Divisible obligation EXCEPT
TO GIVE DEFINITE THINGS
25. In an obligation with a penal clause, the creditor as a rule may recover
from the debtor in case of breach
ONLY THE PENALTY
26. STATEMENT I: The nullity of the principal obligation carries with it the
nullity of the penal clause -TRUE
STATEMENT II: The nullity od the penal clause carries with it the nullity
of the principal obligation – TRUE
27. D borrowed C P 50,000.00. The obligations 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 P 50,000.00 believing that D still
owed C such amount.
T CAN RECOVER P 30,000.00 FROM D. IF D CANNOT PAY, T CANNOT FORECLOSE
THE MORTGAGE ON D’s TOYOTA CAR
28. Concerning payment by cession EXCEPT ONE
THE CREDITORS BCOME THE OWNERS OF THE PROPERTOIES OF THE DEBTOR THAT
WERE CEDED TO THEM
29. D obtained from ABC Bank a loan of P 12,000,000.00 payable at the end
of 10 years. Before maturity, an extraordinary inflation supervened
causing the value of the debt to fall P 4,000,000.00 on the date of the
maturity. On due date, D must pay ABC Bank
P36,000,000
30. B borrowed from XYZ Bank P 2,000,000.00 payable at the end of 5
years. Before maturity an extraordinary deflation supervened causing
the value of the debt to rise to P 5,000,000.00 on the due date of
maturity. On the due date, D must pay ABC bank:
P 800,000.00
31. The money or currency which the debtor may compel the creditor to
accept the payment of a debt, whether public or private
LEGAL TENDER
32. The delivery and transmission of ownership of a thing by the debtor to
the creditor as an accepted equivalent of performance
DATION IN PAYMENT
33. D owes C the following debts: P 6,000.00 due on 12; P 6,000.00 due on
June 15; P 6,000.00 due on June 18; and P 6,000.00 due on June 20. All
debts are unsecured except the debt due on June 20which is secured by
a pledge of D’s diamond ring to C. By agreement, the benefit of the
term on the 4 debts was granted to C. Assuming that D has P 6,000.00
on June 18 and is ready to pay C, which of the following statement is
CORRECT?
D MAY APPLY HIS PAYMENT OF P 6,000.00 TO ANY OF THE DEBTS DUE ON JUNE 12,
JUNE 15 AND JUNE 18 SINCE THEY ARE ALL DUE AS OF JUNE 18
34. The offer made by the debtor to pay his obligation to his creditor
TENDER OF PAYMENT
35. Consignation alone without any tender of payment is sufficient in the
following cases, EXCEPT
WHEN THE CREDITOR PRESENTS THE TITLE TO THE OBLIGATION FOR COLLECTION
36. M owes P 10,000.00. The obligation is evidence by a promissory note.
Subsequently, P assigned the note to A, A to B, B to C, and C back to M.
The obligation is extinguished by:
CONFUSION
37. In order that condonation may extinguish an obligation involving a
movable properly whose value exceeds P 5,000.00
IT IS SUFFICIENT THAT THE CONDONATION AND THE ACCEPTANCE ARE IN
WRITING, EVEN A PRIVATE ONE.
38. Not requisites of legal compensation?
THAT THE DEBTS ARE PAYABLE AT THE SAME PLACE
39. Henry, husband, and Wilma, wife, are legally separated. By order of the
court whi ch decreed the legal separation, Henry is obliged to give a
monthly support of P 10,000.00 to Wilma payable within the first five
days of the month. Wilma owes Henry P 10,000.00 by way of a business
loan. On the other hand, henry has not yet given Wilma’s support of P
10,000.00 for this month. Both debts are already due. Which statement
is CORRECT?
WILMA MAY CLAIM COMPENSATION BUT NOT IN HENRY.
40. D owes C P 10,000.00 with F as guarantor. C on the other hand, owes D,
P8,000.00. Both debts are already due but D is Insolvent.
C MAY COLLECT FROM G P 2,000.00 BECAUSE A GUARANTOR CAN SET UP
COMPENSATION AS REGARDS WHAT THE CREDITOR OWES THE PRINCIPAL DEBTOR
41. D borrowed P 50,000.00 from C. Subsequently, D proposed to C that T
would assume his (D’s) debt. C accepted the proposal of D.
DELEGACION
42. Refer to recent situation. Assume also that on due date, T could not pay
because of his insolvency which was in fact subsisting but was not
known for D or of public knowledge at the time that D delegated his
debt.
C CANNOT HOLD D LIABLE BECAUSE HIS (D’s) OBLIGATION WAS EXTINGUISHED
WHEN HE WAS SUBSTITUTED BY T.
43. D obliged himself to give 5 grams of “shabu” to C. Later, the parties
agreed that D would instead give to C 5 sacks of rice. Which statement
is CORRECT?
THE NOVATION IS VOID BECAUSE THE ORIGINAL OBLIGATION IS VOID. HENCE, C
CANNOT DEMAND THE DELIVERY OF FIVE SACKS OF RICE FROM D.
44. On July1, 2015, D obliged himself to give C P 50,000.00 if C will marry X
on or before December 31,2015. The condition of the obligation is
POSITIVE CONDITION
45. Refer to No 44. Statement I: The obligation of D is demandable if C
marries X on or before December 31, 2015 – TRUE
Statement II: The obligation of D is extinguished if its already January 01,
2016 and C has not yet married X – TRUE
Statement III: The obligation of D is extinguished on December 2, 2015 if X dies
on the said date and C has not yet married X -TRUE
Statement IV: The obligation is demandable if C marries X on January 01, 2016 –
FALSE
46. On July 01,2015, D obliged himself to give C a specific car if C will not
marry X on or before December 31,2015. The condition of the obligation
is
NEGATIVE CONDITION
47. Refer to No. 46. Refer to No 44. Statement I: The obligation of D is
demandable if C marries X on January 01, 2016 – TRUE
Statement II The obligation of D is demandable on December 2, 2015 if X dies
on the said date and D has not yet married X– TRUE
Statement III: The obligation of D is demandable if it is already January 01, 2016
and D has not yet married X -TRUE
Statement IV: The obligation is demandable if C marries X on December 2, 2015
– FALSE
48. D owes C P 5,000.00. T a third person and without any intention to be
reimbursed by D, paid the debt without the consent of D. C accepted
the payment.
THE PAYMENT IS CONSIDERED VALID BECAUSE IT WAS ACCEPTED BY THE
CREDITOR.
49. A mode of extinguishing obligations up to their concurrent amount
when two persons are principal debtors and creditors of each other
COMPENSATION
50. D owes C P 6,000.00. No date for payment was stipulated by the parties
C CAN REQUIRE D TO PAY AT ANYTIME
51. Under a contract executed on November 01, 2015, D obliged himself to
give a specific horse to C on December 10,2015, C demanded the
delivery of the horse but D did not comply. The following day, the horse
was struck by lightning and died instantly.
THE OBLIGATION OF D IS EXTINGUISHED BECAUSE THE LOSS IS DUE TO
FORTUITOUS EVENT AND D WAS NOT IN DEFAULT
52. Not Conditional Obligation
D TO PAY C P 5,000.00 AS SOON AS D HAS THE MEANS
53. Distinction between merger and compensation is that merger:
THE DEBTOR AND THE CREDITOR REFER TO ONLY ONE PERSON.
54. The passage of time as a mode of acquiring or losing a right including
the extinguishment of an obligation
PRESCRIPTION
55. Legal compensation shall not be proper in three of the following cases
EXCEPTION?
BANK DEPOSIT
56. D is a debtor of C for P 20,000.00. The debt is secured by a pledge of D’s
diamond ring which is in C’s possession. Before the due date, C
voluntarily returned the diamond ring to D. Which was extinguished by
the return of the ring?
THE PLEDGE OF THE DIAMOND RING ONLY
57. D promised to deliver specific horse to C on December 31, 2015, with
the stipulation that he will give C 100 grams of ‘shabu’ as a penalty if he
fails to deliver the horse on the said date. Which obligation is VOID?
THE PENALTY ONLY
58. If two or more persons claims the same right to collect from debtor, the
debtor’s appropriate remedy:
CONSIGNATION
59. The young and other products of animals, produces with the
intervention of human labor
NATURAL FRUITS
60. D owes C the following debts: P 4,000.00 due on February 01; P 7,000.00
due on February 05; P 5,000.00 due on February 10 and P4,000.00 due
on February 20. By agreements of the parties, the benefit of the period
was given to D. If today is February 14, and D has not paid any of the
said debts but is offering P 4,000.00 to C as payment today, to which
debt may D apply the payment?
TO THE DEBT DUE ON FEBRUARY 1 OR FEBRUARY 20 AT HIS OPTION
61. Refer to preceding No. Supposing that when d gave the payment to C, D
did not designate the debt to which the payment shall apply. Neither
did C indicate in the receipt that he issued to D which debt was being
paid. Which debt is being paid.
TO THE DEBTS DUE ON FEBRUARY 1, FEBRUARY 5 AND FEBRUARY 10
PROPORTIONATELY AT P10,000.00, P1,750.00 AND P1,250.00 RESPECTIVELY
62. It is a mode of extinguishing of an obligation which has a two-fold
function. One is to extinguishing an old obligation and the other to
substitute a new in its place
NOVATION
63. A, B and C are solidarily indebted to X for P 9,000.00. X is indebted to A
for P 9,000.00. Both debts are due
THERE IS A LEGAL COMPENSATION UP TO P9,000.00
64. Refer to the same facts except that the debtors are jointly liable to X. As
a result, which statement is INCORRECT?
THERE IS NO LEGAL COMPENSATION AT ALL
65. Concerning legal compensation
Legal compensation cannot take place if the debts have different due
dates - FALSE
Legal Compensation may take place although the debts are payable at
different places- TRUE
66. The absence of the stipulation on liability in case for fortuitous event is
generally to the advantage of the
DEBTOR
 67. A stipulation that demand shall not be required in order to make the
debtor in delay is generally to the advantage of the:
DEBTOR
68. D borrowed P500,000.00 from C payable at the end of five years. Due to
supervening extraordinary inflation, the value of the dedbt fell to
P250,000.00 on the date of maturity. How much must D pay C on the
date of maturity?
P250,000.00
69. An obligation cannot exist without a contract- FALSE
A contract can exist without an obligation- FALSE
70. Obligations are immediately demandable EXCEPT
OBLIGATION WITH A CONDITION ANTECENDENT
71. When a third person pays the creditor without intending to be
reimbursed and the debtor did not give his consent to the donation:
THE PAYMENT IS VALID AS TO THE CREDITOR WHO ACCEPTED IT
72. D owes C P30,000.00 due on April 01, 2015. C owes D P30,000.00 due on
March 15, 2015. What kind of compensation may possibly take place
today is February 14, 2015.
VOLUNTARILY
73. D owes C P20,000.00 payable on or before March 31, 2015. C is obliged
to pay D P20,000.00 on March 15, 2015. As a result, which statement is
INCORRECT?
C MAY CLAIM COMPENSATION ON MARCH 15,2015
74. Consignation, without any tender of payment, will release the debtor
from liability in the following case EXCEPT
THE CREDITOR IS CAPACITATED TO RECEIVE PAYMENT
75. D borrowed P 10,000.00 C. On due date, C was already insane.
Nonetheless, D gave C P10,000.00 to settle the debt. When C’s guardian
learned of the payment made by D, C was found to have only P3,000.00
left in his wallet and that he had lost P1,500.00in a gambling game and
used P 5,000.00 to by his food.
PAYMENT IS VALID ONLY UP TO P8,500.00
76. Not a feature of dacion en pago
THE DEBTOR MUST BE INSOLVENT
77. Not a feature of payment by cession
THE DEBTOR IS TOTALLY RELEASED FROM HIS LIABILITIES
78. Statement concerning facultative obligation is CORRECT?
THE RIGHT TO MAKE THE SUBSTITUTION BELONGS TO THE DEBTOR ONLY
79. D is indebted to C for P100,000.00. Which is already due. D offers to give
a certified check to C to settle the debt
IF C REFUSES TO ACCEPT THE CHECK, D MAY REPLACE THE CHECK WITH 5,000
PIECES OF P20.00 BILL AND IF C REFUSE TO ACCEPT IT , D MAY CONSIGN THE
PAYMENT
80. The waiver of an action for fraud is valid in the case of
PAST FRAUD
81. D borrowed P50,000.00 from C. On due date, D offered to give his ring,
his bracelet or his necklace in payment of the deft of five days from the
due date of the original obligation. C accepted the offer. Two days
before the new due date, D’s ring was lost through his fault.
D IS NOT OBLIGED TO PAY DAMAGED TO C FOR THE LOSS OF THE RING DUE TO HIS
FAULT
82. Statement are presented:
Statement I: A quasi contract is an implied contract - FALSE
Statement II: There is no delay in obligations not to do.- TRUE
83. Statement are presented:
Statement I: Payment is still possible when two persons are debtors and
creditors of each other.- TRUE
Statement II: payment is impossible when a person is both the debtor and
the creditor of the same obligation- TRUE
84. D obtained loan of P1,000,000.00 from C. The debt, which is due on
December 31, 2015, is secured by chattel mortgaged of D’s brand new
Toyota Innova van. On June 1, 2015, the van was swept away by flood
waters at the height of Typhoon Olga and could no longer be found
D’S OBLIGATION P1,000,000.00 BECAME DEMANDABLE ON JUNE 01, 2015, UNLESS
HE GIVES ANOTHER SECURITY.
85. On January 01, 2015, D borrowed P500,000.00 from C with interest at
10% per annum. The loan obligation the interest are due on December
31, 2015.
D MAY COMPEL C TO ACCEPT PAYMENT BEFORE DECCEMBER 31, 2015- INCORRECT
C MAY COMPEL D TO MAKE PAYMENT BEFORE DECEMBER 31, 2015 -INCORRECT
86. Refer to the facts in preceding number. Assuming that on due date, D
has only P500,000.00 and he offers this amount to C who is willing to
accept it as partial payment.
THE PAYMENT SHALL BE APPLIED FIRST TO THE INTEREST AT P50,000.00. THA
BALANCE OF P450,000.00 SHALL BE APPLIED TO THE PRINCIPAL; HENCE, D STILL
OWES C P50,000.00FOR THE RPINCIPAL WHICH WILL CONTINUE TO BEAR INTEREST
87. D obliged himself to give P50,000.00 to C if C does not fly to the moon.
THE OBLIGATION IS IMMEDIATELY DEMANDABLE
 88. A, B and C are liable individual and collectively to X in the amount of
P30,000.00. On due date, X demanded payment from A. However, C is
insolvent
X MAY COLLECT P30,000.00 FROM EITHER A AND B
89. Delia obtained a loan of P50,000.00 from Corazon payable on January
31. On January 25, Delia offered to deliver her diamond ring of the same
value on January 31 to Corazon to settle the debt. Corazon accepted the
offer on the same dat. Thus, on January 31, Delia delivered her diamond
ring to Corazon. Which statement is INCORRECT?
DELIA’S LOAN OBLIGATION OD P50,000.00 WAS EXTINGUISHED ON JANUARY 31
WHEN SHE DELIVERED HER DIAMAOND RING TO CORAZON.
90. A, B and C are indebted to W, X, Y and Z in the amount of P24,000.00. In
this case:
W CAN COLLECT P2,000.00 EACH FROM A, B AND C. THEN HE NEED NOT GIVE ANY
AMOUNT TO X, Y AND Z
91. The principal of negotorium gestio does not apply:
WHEN THE PROPERTY OR BUSINESS IS NOT NEGLECTED OR ABANDONED –
DOESN’T
WHEN THE OFFICUOUS MANAGER HAS BEAN TACITLY AUTHORIZED BY THE
OWNER- DOESNT
92. Statement are presented:
Statement I: There is no delay in obligations not to do. -FALSE
Statement II: Delay is applicable only to the debtor never to the creditor. -
TRUE
93. The obligation of a school to provide its student a safe and secure
environment and an atmosphere conducing to learning is an obligation
arising from:
CONTRACT
94. When the debtors bind himself to pay as soon as he has the means:
THE OBLIGATION IS VALID, BUT THE CREDITOR MUST GO TO AND ASK THE COURT
TO FIX THE PERIOD FOR THE PAYMENT OF THE OBLIGATION
95. M makes an interest-bearing promissory note amounting to
P100,000.00 payable to the order of P. The back of the promissory notes
contains the following indorsements: P to A, A to B, B to C and C to H
who is now in possession of the note. On due date, H goes to the office
of M to collect but he finds R who is trying to collect the amount on the
note based on a power of attorney supposedly executed in his favor by
C. M is now confused on whom to pay. He is worried that the interest
will keep on accruing if he does not pay. If you were in the position of
M, the safest thing that you will do is:
GO TO COURT AND DEPOSIT THE PAYMENT BY WAY OF CONSIGNATION
96. M obtained a loan of P50,000.00 from P. The loan is evidenced by
promissory note executed by M with G signing as a guarantor of the
debt. P assigns the note to A, A to B, B to C and C to G. The assignment
of the note to G extinguished:
ONLY THE GUARANTY
97. D borrowed P200,000.00 from C. The debt is payable after 6 months and
is secured by a chattel mortgaged on D’s growing crops. A month before
due date, the crops were completely destroyed by Typhoon Ondoy
C MAY NOW DEMAND IMMEDIATE PAYMENT OF THE LOAN UNLESS D FURNISHES
ANOTHEER SECURITY
98. Void Obligation
D TO GIVE C P50,000.00 IF D WINS IN THE SWEEPTAKES D HAS NOT YET BOUGHT
THE SWEEPTAKES TICKET
99. D owes C the following debts: P3,000.00 due on July 1, P5,000.00 due on
July 6, P2,000.00 due on July 15 and P2,000.00 due on July 25. If today is
July 22 and D gives P2,000.00 to C but neither nor C indicated the debts
to which the payment shall be applied to
TO THE DEBTS DUE ON JULY 1, JULY 6, AND JULY 15 PROPORTIONATELY AT
P600.00, P1,000.00 AND P400.00 RESPECTIVELY.
100. Legal compensation will not take place if:
THERE IS CONTROVERSY OR RETENTION INVOLVING ONE OF COMMUNICATED
COMMENCED BY THIRD PERSON AND COMMUNICATED IN DUE TIME TO THE
DEBTOR.
101. D borrowed P 50,000.00 from C. Not having sufficient cash to pay the
debt, D proposed to pay the debt by giving his diamond ring. C accepted
the proposal and received the ring
D’S OBLIGATION IS EXTINGUISHED BY DACION EN PAGO
102. Donita owed Carmina P200,000.00. The loan is secured by a mortgaged
of Donita’s lot. After a month Donita paid P20,000.00. Without the
knowledge of Donita, Teresa paid Carmina P200,000.00 believing that
Donita still owned the amount of P200,000.00
TERESA CAN DEMAND P180,000.00 FROM DONITA AND IF DONITA CANNOT PAY,
TERESA CANNOT FORECLOSED THE MORTGAGED ON THE LOT .
103. A, B and C are solidarily debtors of X in the amount of P60,000.00. A,
however, was a minor at the time the obligation was constituted. If X
sues B, B will be liable to X for:
P40,000.00
 104. A, B and C are solidarily debtors of X in the amount of P30,000.00. If A is
insolvent, how much X collect from B?
P30,000.00
105. A, B, and C are joint debtors of W, X, Y and Z joint creditors, in the
amount of P24,000.00. In this case W can demand:
P24,000.00 FROM A, P2,000.00 FROM B AND P2,000.00 FROM C
106. If there is concurrence of two or more creditors and/ or two or more
debtors in one and the same obligation, the obligation is presumed to
be:
JOINT
107. Statement I: A stipulation that an obligation shall be paid in a currency
other than Philippine legal tender is void – FALSE
Statement II: A cashier’s check is as good as cash; hence, it is a legal
tender – FALSE
108. It transfers to the person taking the place of the creditor all the rights
pertaining to the credit, either against the debtor or against third
person be they guarantors or possessors of mortgages
SUBROGATION
109. D owes C P20,000.00 with G as guarantor. C, on the other hand, owes D,
P15,000.00. Both debts are already due but D is insolvent. In this case:
C MAY COLLECT FROM G P5,000.0 BECAUSE A GUARANTOR CAN SET UP
COMPENSATION AS REGARDS WHAT THE CREDITOR MAY OWE THE PRINCIPAL
DEBTOR.
110. D is obliged to give Object 1, Object 2, or Object 3 to C. The right of
choice bas to which object will be delivered to C belongs to:
D ONLY
111. The obligation referred in the preceding number is:
AN ALTERNATIVE OBLIGATION
112. The obligation is extinguished in:
Statement I: Object 1 and Object 2 are lost through D’s fault and later
Object 3 is lost through a fortuitous event
Statement II: Object 1 and Object 2 are lost through a fortuitous event,
and later Object 3 is lost through D’s fault
STATEMENT 1 ONLY
113. One of the following is an obligation with a period with a suspensive
effect
“I WILL GIVE YOU P5,000.00 PER MONTH AS SUPPORT BEGINNING JANUARY 1 OF
NEXT YEAR”
114. The creditor has the right to the fruits of the thing from the time:
THE OBLIGATION TO DELIVER THE THING ARISES
115. Statement I: It may or may not happen – CONDITION
Statement II: It always refers to the future – PERIOD
Statement III: It may refer to a past event unknown to the parties –
CONDITION
Statement IV: It merely fixes the time for the efficaciousness of an
obligation – PERIOD
116. Obligations are demandable at once EXCEPT
AN OBLIGATION WITH A CONDITION ANTECEDENT
117. D obtained a loan of P30,000.00 from C with G a guarantor, c on the
other hand, owes G P30,000.00. Both debts are due:
Statement I: If C sues D, D may successfully put up the defense of
compensation because C owes G, D’s guarantor. – FALSE
Statement II: If C sues D, D may not put up the defense of compensation
as to what C owes G – TRUE
Statement III: If D cannot pay and C sues G, G can put up compensation
because C owes him P30,000.00 – TRUE
Statement IV: Both D’s debt to C and C’s debt to G are extinguished by
legal compensation – FALSE
118. Orlando bought his typewriter at the shop of Remigio for repair.
Orlando mase several demands for the repair work to be done but
Remigio did not undertake the repairs. Eventually, Remigio returned
the typewriter, unrepaired and with several parts missing:
Statement I: Orlando can have the type writer repaired by another
repair shop with the repair cost thereof chargeable to Remigio
Statement II: Orlando can compel Remigio to undertake the repairs
Statement III: Orlando can ask for damages for the missing parts of the
typewriter at the expense of Remigio
Which remedies may be availed by Orlando?
STATEMENT 1, STATEMENT 3
119. D is obliged to give his only car to C on December 01, 2014. On
December 01, 2014, D did not deliver the car. The following day, armed
men forcibly took car from D’s garage.
D’s OBLIGATION TO GIVE THE CAR IS EXTINGUISHED
120. During the flood the properties of D were saved from destruction by C
without the knowledge of D who was then away. C incurred necessary
and useful expenses in the act of saving D’s properties. For such
expenses:
D MUST REIMBURSE C ALTHOUGH C ACTED WITHOUT THE CONSENT OF D
121. A, B and C are jointly liable to X in the amount f P12,000.00. On due
date, X demanded payment from A, but A refuse to pay. How much may
X collect from B?
P4,000.00 WITHOUT ANY DAMAGES
 122. Assume the same facts except A, B and C are solidarily liable to X in the
amount of P12,000.00. on due date, X demanded payment from A but A
refuse to pay. How much may X collect from B?
P12,000 PLUS DAMAGES FOR DELAY
123. A, B and C jointly borrowed P3,000.00 from X. On due date, A was
insolvent. How much may X collect from B?
P1,000.00
124. Assume the same facts except that the debtors are solidarily bound.
How much may X collect from B?
P3,000.00
125. A, 17 years old, B, 25 and C, 30, jointly borrowed P6,000.00 from X. How
much may X collect from B
P2,000.00
126. Assume the same facts except that the debtors are bound solidarily.
How much may X collect from B?
P4,000.00
127. D is obliged to pay C P10,000.00 on or before June 15. C is obliged to
pay D P10,000.00 on June 30. Who may claim compensation on June
15?
NEITHER D NOR C
128. D is obliged to pay C P10,000.00 on or before June 30. C is obliged to
pay D P10,000.00 on June 15. Who may claim compensation on June
15?
D ONLY
129. D is obliged to deliver specific horse to C for entry in the derby. The day
before the agreed date of delivery, the horse broke its right front leg.
While it could still walk, it can no longer run.
THE OBLIGATION IS EXTINGUISHED BECAUSE THE INJURY TO THE RIGHT FRONT LEG
OF THE HORSE IS A PARTIAL LOSS THAT IS SO IMPORTTANT IN THE RELATION OF
THE OBLIGATION
130. 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 type of novation which
involves the substitution the debtor is known as:
DELEGACION
131. 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 that he delegated his debt
C CANNOT HOLD D LIABLE BECAUSE HIS (D’S) OBLIGATION WAS EXTINGUISHED
WHEN HE WAS SUBTITUTED BY T
132. D owes C P30,000.00 due on June 20. C owes D the following debts:
P15,000.00 due on June 2, P4,000.00 due on June 14, P6,000.00 due on
June 16; and P3,000.00 due on June 18. On June 17, c assigned his right
to X. C notified D of the assignment but D did not give his consent
thereto. On June 20, X may collect from D
P30,000.00
133. Assume the same facts except that when C made the assignment of his
credit to X, C did not notify D about it. It was only June 20 when X went
to D to collect that D learned of the assignment. In this case X may
collect from D?
P2,000.00
134. D owes C P30,000.00 due on June 20. C owes D P14,000.00 due on June
15. On June 12, C assigned his rights to X. D consented to such
assignments without any reservation of his right to the compensation.
On June 20, X may collect from D:
P20,000.00
135. In order for legal compensation to take place, two of the requisites are:
that each one of the obligors be bound principally, and that he be at the
same time a principal creditor of the other, and the two debts must be
due. In addition, following requisites must be present except:
THAT THE DEBTS MUST HAVE THE SAME AMOUNT
136. In order that condonation may extinguish an obligation involving a
movable property whose value exceeds P5,000.00
IT IS SUFFICIENT THAT THE CONDONATION AND ACCEPTANCE ARE IN WRITING,
EVEN A PRIVATE ONE
137. The obligation is not extinguished by reason of the loss of the thing
through a fortuitous event in three following cases. Which is the
EXCEPTION?
WHEN THE OBLIGATION IS TO GIVE A DETERMINATE THING AND THE PARTIES
HAVE NOT STIPULATED WHETHER OR NOT THERE SHALL BE LIABILITY IN CASE OF
FORTUITOUS EVENTS
138. D issued a promissory note payable to the order of C for a debt of
P10,000.00 which bears interest at 2% per month. On due date, X went
to the place of D to collect the deb claiming that C assigned the note to
him X, however could not present the promissory note claiming that he
had lost it. D wants to make a payment because he does not want the
interest to accrue but he is at loss as to whatever he would make
payment to X. In this case, the course of action that you will advise to D
to take is:
CONSIGNATION
139. D owes C the following debts: P4,000.00 due on May 01, P4,000.00 due
on May 08, P4,000.00 due on May 15, P4,000.00 due on May 22,
 P4,000.00 due on May 29 and P4,000.00 due on June 15. The debts
presented the price of magazines which were delivered to D on a
weekly basis. Of the 6 debts the one due on May 22 is secured by a
pledge of D’s ring. By agreement, of the parties, C may demand
payment even before the due date of the debt. As of May 31, D had not
paid any of the 6 debts. On May 31, D wanted to make payment but he
had only P4,000.00
D MAY APPLY THE PAYMENT TO THE DEBT DUE ON MAY 22 WHICH IS THE MOST
BURDENSOME TO HIM.
140. Assuming that D did not designate the debt to be paid when he
remitted the amount of P4,000.00 to C on May 31. C issued a receipt for
the payment he received from D but he did not also designate the debt
that was being paid. In this case:
THE PAYMENT SHALL BE APPLIED TO THE DEBT DUE ON MAY 22, SINCE IT IS THE
DEBT THAT IS MOST ONEROUS TO D
141. Statements concerning payment by cession are true, EXCEPT?
THE CREDITORS BECOME THE OWNERS OF THE PROPERTIES OF THE DEBTOR THAT
WERE CEDED TO THEM
142. Following payment is not VALID?
PAYMENT MADE IN GOOD FAITH TO A PERSON IN POSSESSION OF THE INTRUMENT
BUT NOT THE CREDIT
143. D obtained a loan of P10,000.00 from C who was in his right mind at the
time he granted the load to D. On due date, D paid his loan of
P10,000.00 to C who had since become insane. Of the total amount
received, C lost P4,000.00 and spent P6,000.00 for his food and other
necessary expense.
THE OBLIGATION IS EXTINGUISHED UP TO P6,000.00
144. Following payment is not VALID?
PAYMENT MADE BY THE CREDITOR TO THE PERSON IN POSSESSION OF AN ORDER
INTRUMENT EVIDENCING THE CREDIT BUT SUCH PERSON IS NOT THE INDORSE
THEREOF.
145. D owes C P10,000.00. T offers to pay D’s obligation and tells D that D
need not reimburse him. However, D does not give him consent to T’s
offer not to be reimburse. C, nonetheless, accepts the payment from T.
THE PAYMENT IS VALID INSOFAR AS C IS CONCERNED SINCE HE ACCEPTED THE
PAYMENT
146. The delivery of promissory notes payable to order or other bills of
exchange or other mercantile documents shall produce the effect of
payment when they are:
CASHED
147. A, B, and C are solidary debtors of X, in the amount of P30,000.00. C was
insane at the time of obligation was constituted:
X MAY POSSIBLY COLLECT FROM A THE AMOUNT OF P10,000
148. Three of the following are the characteristic of a condition. EXCEPTION
IT MERELY FIXES THE TIME FOR THE EFFICACIOUSNESS OF AN OBLIGATION
149. D is obliged to give P50,000.00 to C if C tops the CPA Examination and a
specific lot if C can reduce the taxes to be paid by D’s tax return by
unlawful means
C MAY DEMAND THE PAYMENT OF P50,000.00 IF HE TOPS THE CPA
EXAMINATION
150. D promised to give P20,000.00 to C provided to C does not sign a
contract with X on or before December 31, 2014. The condition of the
obligation is:
NEGATIVE
151. Refers to preceding number, which statement is incorrect?
D’s OBLIGATION IS EXTINGUISHED IF IT IS ALREADY JANUARY 1, 2015 AND C HAS
NOT YET SIGNED THE CONTRACT WITH X
152. D is appointed C as his agent to purchase a parcel of land belonging to C
if C can present to D the deed of absolute ale signed by X in favor of D
on or before December 31, 2014. The condition of the obligation is :
POSITIVE
153. Refers to preceding number, which statement is incorrect?
D’s OBLIGATION IS DEMANDED IF IT IS ALREADY JANUARY 1, 2015 AND C HAS
NOT YET PRESENTED TO D THE DEED OF ABSOLUTE SALE DULY SIGNED BY X
154. D was obliged to deliver a specific car to C on May 31, 2015. On such
date, however, D failed to deliver the car. C also did not make any
demand for the delivery of the car
D WAS NOT IN DELAY WHEN HE FAILED TO DELIVER THE CAR ON DUE DATE
155. The kind of fraud which is renders a contract voidable is
CAUSAL FRAUD
156. D is obliged to repair the car of C. D failed to repair car despite the
demands made by C. D wants to know from you which remedies are
available to him
Statement I: Compel D repair the car
Statement II: Have the car repaired by another person at D’s expense
Statement III: Demand payments for damages from D
STATEMENT 2, STATEMENT3
 157. D is obliged to deliver his only horse to C on May 31, 2014. C made a
demand against D for the delivery of the horse on May 31, 2014.
However, D failed to deliver the horse. In view thereof, C consulted you
and ask which of the following remedies are available to him?
Statement I: Compel d to deliver the horse to him
Statement II: Get a horse from another person at D’s expense
Statement III: Demand payment for damages from D
STATEMENT 1, STATEMENT 3
158. The palay harvested from the agricultural land is an example of:
INDUSTRIAL FRUIT
159. On January 1, 2014, D and C agreed that D would deliver to C a specific
agricultural land on June 30,2014, D harvested palay from the land
worth P20,000.00. D actually delivered the land to C on September 30,
2014. At that time, crops valued at P15,000.00 that grew beginning on
July 1, 2014 remain unharvested. C had a personal right against D for
the delivery of the thing and its fruits beginning to:
JULY 01, 2014
160. C acquired a real right over the thing and its fruits on:
SEPTEMBER 30, 2014
161. A, an agent of P, owes B P20,000.00. B, on the other hand, owes P,
P20,000.00. Both debts are due:
NEITHER P, A NOR B MAY CLAIM LEGAL COMPENSATION
162. D borrowed P50,000.00 from C. The debt, which is payable within one
year, is secured by a mortgaged what D constituted on his lot. The
mortgaged is recorded in the Registry of Property. C dies before the due
date of the debt and was not able to collect any amount of his loan
receivable from D. He was survived by S, his only son and heir. D, taking
advantage of the situation, sold the lot to T who was not aware of the
mortgaged constituted thereof.
S, SON OF C, HAS THE RIGHT TO COLLECT THE AMOUNT OF THE NOTE, FROM D
AND FORECLOSE THE MORTGAGE IF D CANNOT PAY
163. D obtained a loan of P50,000.00 from C. The same is payable after 60
days. On due date, D, not having sufficient cash offered to give either hi
sing or his bracelet to C. C accepted the offer. Based on foregoing facts,
which of the statements is INCORRECT?
THE RIGHT TO CHOOSE THE ITEM TO BE GIVEN BELONGS TO C
164. Statement I: Several prestations are due but all must be performed to
extinguished the obligation
Statement II: If there are void prestations, the other prestations may
still be valid, hence the obligation remains – ALTERNATIVE OBLIGATION
165. D obtained a loan of P50,000.00 from C. The loan was evidenced by a
promissory note executed by D which said nothing about the
transmissibly of the loan obligation or the right to collect it. A month
before the due date of the loan, C died leaving S, his son as heir. On due
date, S presented the promissory note to D for payment, but D refused
claiming the he owed C but not S.
D MAY NOT REFUSE TO PAY BECAUSE THE RIGHT OF C TO COLLECT WAS
TRANSMITTED TO S WAS THE HEIR OF C NOTWITHSTANDING THE ABSENCE OF AN
AGREEMENT TO THAT EFFECT.
166. D is obliged to deliver 20 acks of “Dinorado” rice to C. The parties
agreed that should D fail to perform his obligation as stipulated, D will
pay a penalty of P1,000.00. On due date, D made a delivery of 20 sacks
of rice but each sack contained a mixture of “dinorado” rice and
another variety of lower quality. C discovered the fraud:
C MAY DEMAND THE PAYMENT OF THE STIPULATED PENALTY AS WELL AS
DAMAGES ALTHOUGH THERE WAS NO STIPULALTION ON THE ALTTER.
167. D obtained a loan of P5,000.00nfrom C. On due date, D tendered
payment amounting to P5,000.00 consisting of P5,000.00 pieces of
P1.00 coin.
C MAY DEMAND THAT HE BE PAID IN BILLS
168. D owes C P50,000.00. The obligation is secured of G and a real mortgage
on D’s lot. Subsequently, without the knowledge of D, paid C the
amount of P50,000.00
G CAN GO AFTER D, TO COLLECT AND IF D CANNOT PAY, G CAN FORECLOSE THE
MORTGAGE BECAUSE HE IS ENTITLED TO SUBROGATION.
169. One peso, P5.00 and P10.00 coins are legal tender up to:
P1,000.00
170. One centavo, P.05, P0.10 and P0.25 centavo coins are legal tender up
to:
P100.00
171. All bills are legal tender up to:
ANY AMOUNT
172. Obligation is Void:
D AGREED TO PAINT THE PORTRAIT OF C IF D WILL ENROLL IN A PAINTING CLASS
THIS COMING MONTH
173. Obligation is extinguished by loss in?
Statement 1:D is obliged to deliver a specific computer to C. Before the
scheduled delivery, the computer was lost in a fire through no fault of D.
Statement 2: D is obliged to deliver 10 sacks of rice to C. Before the
scheduled delivery, the warehouse of D containing 500 sacks of rice
 from which D, intended to get 10 sacks of rice for delivery to C, was
razed in a fire together with the stock of rice through no fault of D.
ONE ONLY
174. Condonation, the obligation is:
Statement 1: A condonation involving a debt of an immovable property
which was embodied in a private instrument together with the
acceptance thereof.
Statement 2: A condonation involving a money debt of P6,000.00 made
and accepted orally with the creditor making a simultaneous delivery to
the debtor of the promissory note evidencing the credit
NOT EXTINGUISHED IN EITHER 1 OR 2
175. D received a check for P5,000.00 drawn against ABC Bank in payment of
a debt due him. Upon chasing the check, D requested the teller to give
him 10 pieces of P500.00 bill and to place the money in a envelop. As he
was in a hurry, D left the bank without bothering to count the cash.
Shortly, after reaching his office, D counted the money in a envelop and
discovered that it contained 10 pieces of P1,000.00 or an excess of
P5,000
D MUST RETURN THE EXCESS OF P5,000.00 BECAUSE HE HAS THE OBLIGATION TO
DO SO UNDER THE PRINCIPLE OF SOLUTIO INDEBITI
176. D a professional singer, agreed to sing for a fee of P20,000.00 at the
birthday of C who was a fan of D, could not go to the party of C. So he
sent X, another professional singer who was known to sing better than
D, to sing at C’s party, and informed C that the latter needed to pay only
P10,000.00
D MAY NOT VALIDLY ASSIGN HIS OBLIGATION TO SING BECAUSE IT IS PERSONAL
IN NATURE
177. D is obliged to deliver either a specific bracelet, a specific necklace, or a
specific ring to C. No mention was made in the agreement of the parties
as to who has the right of choice. Before due date, C wrote D informing
the latter that he (C) preferred that the ring be delivered to him. D
received the letter but did not give any response to C. Subsequently, the
ring was lost through a fortuitous event.
D’s OBLIGATION IS NOT EXTINGUISHED AS HE MAY DELIVER EITHER THE
BRACELET OR THE NECKLACE
178. D is obliged to deliver a specific Toyota car to C. The parties agreed that
should D so desire, he may deliver his only Lancer car to C as a
substitute. Before D could make any substitution, the Lancer car was
damaged beyond repair through the fault of D.
D IS STILL OBLIGED TO DELIVER THE TOYOTA CAR TO C ON DUE DATE
179. D borrowed P50,000.00 from C. On due date, D did not have any money
to pay the debt so he proposed to C that the latter accept the ring to
settle the debt. C accepted the proposal and received the ring.
Immediately, after receiving the ring, C sold it to B. D’s obligation to
give P50,000.00 to C is extinguished by:
DACION EN PAGO
180. D obtained a loan of P500,0000.00 from C on January 01, 2014. The loan
which D has the option of paying on or before December 31,2014 is
secured by a building owned by D and bears interest of 1% per month.
On June 30, 2014 the building was razed in a fire without the fault of D
C MAY DEMAND IMMEDIATE PAYMENT OF THE LOAN FORM d ON JUNE 30, 2014
SINCE THE SECURITY THEREOF WAS LOST, UNLESS D GIVES ANOTHER SCURITY
181. D owes C P60,000.00 which is due on January 10 and another debt of
P12,000.00, which is due on January 20. Both debts are unsecured and
non-interest bearing and already due. D, however, has only P3,000.00
which he gives to C without informing C as to which debt the payment
shall apply. C also did not indicate on the receipt he issued to D to
which of the two debts the payment shall apply:
THE PAYMENT OF P3,000.00 SHALL BE APPLIED PROPORTIONATELY IN THE
AMOUNT OF P1,000.00 TO THE DEBT DUE ON JANUARY 10, AND P2,000.00 TO THE
DEBT DUE ON JANUARY 20
182. A and B are joint debtors of W, X, Y, and Z solidary creditors in the
amount of P20,000.00
W CAN COLLECT ONLY THE MAXIMUM AMOUNT OF P10,000.00 EACH FROM A AND
B. IF W IS ABLE TO COLLECT P10,000.00 FROM A, W MUST GIVE P2,500.00 EACH TO
X, Y AND Z . IF W IS ABLE TO COLLECT P10,000.00 FROM B, W MUST GIVE P2,500.00
EACH TO X, Y AND Z.
183. Decoroso borrowed P50,000.00 from Collantes which Gualberto as
guarantor. However, Collantes is also indebted to Decoroso in the
amount of P30,000.00. Both debts have become due. Collantes
demanded payment from Decoroso but Decoroso has become insolvent
with the asset only P15,000.00 which he used in partial payment of his
debts to Collantes
COLLANTED CAN HOLD GUALBERTO LIABLE FOR THE AMOUNT OF P30,000.00 ONLY
BECAUSE THAT IS THE AMOUNT THAT COLLANTES OWES DECOROSO
184. When two persons are claiming the same right to collect from you and
you are in doubt to whom you will give your payment your remedy so
that you will not pay the wrong person
CONSIGNATION
185. A, B and C are liable to X in the amount P30,000.00. The debt is
evidenced by a promissory note which reads “I promise to pay X or
 order P30,000.00”. The note is signed by A, B and C. X indorsed the note
to Y, Y to Z, and Z to A for merchandise Z bought from A.
THE OBLIGATION UNDER THE NOTE IS TOTALLY EXTINGUISHED
186. D is indebted to C in the amount of P100,000.00. The debt is secured by
a mortgage of the lot of D and the guaranty of G. G without informing
D, paid the total amount of the loan to C.
G CAN COLLECT FROM D. IF D CANNOT PAY, G CAN FORECLOSE THE MORTGAGE
187. D, a depositor of ABC Bank, visited the branch of the bank at Espana
Boulevard to withdraw from its automated teller machine (ATM). After
pressing correctly, the amount of P500.00 the machine dispensed 10
pieces of P500.00 or a total of P5,000.00. The receipt released by the
ATM showed that only P500.00 was withdrawn.
D MUST RETURN THE EXCESS OF P4,500.00 BECAUSE IT WAS A CASE OF
PAYMENT THAT WAS NOT DUE.
188. Characteristic of Expromission but NOT Delegacion.
IT IS MADE WITH OR WITHOUT THE CONSENT OF THE DEBTOR.
189. D is indebted to C for P52,000.00. On due date, D tendered payment
amounting to P52,000.00 which considered of the following: 47 pieces
of P1,000.00 bills for a total of P47,000.00; and a 250 pieces of P20.00
bills for a P5,000.00. C refuse to accept the payment and demanded
that D makis his payment all in P1,000.00 bills were too bulky and
inconvenient for him to carry.
D MAY CONSIGN THE PAYMENT SINCE THE REFUSAL BY C TO ACCEPT THE
PAYMENT WAS NOT JUSTIFIED
190. Dacion en pago and payment by cession are special forms of payment.
They are similar in which of the following respects.
ON THE PURPOSE OF THE PAYMENT
191. D owes C the following debts: P5,000.00 due on January 1; P7,000.00
due on January 5; P8,000.00 due on January 10; P10,000.00 due on
January; P10,000.00 due on January 15 and P5,0000.00 due on January
20. By agreement of the parties, D was given the benefit of the period.
As of January 17, D has not paid any of the debts. He has P5,000.00
which he wants to remit to C.
D MAY APPLY THE PAYMENT EITHER TO THE DEBT DUE ON JANUARY 1 OR
JANUARY 20
192. Facultative obligation EXCEPT?
THE DEBTOR MUST GIVE THE SUBSTITUTE IN CASE THE PRINCIPAL THING IS LOST
DUE TO THE DEBTORS FAULT BEFORE SUBSTITUTION
193. D obtained a loan of P200,000.00 from C. Not having any cash due date
when C visited him to demand payment, D offered to C to accept, at C’s
choice, either D’s necklace, diamond ring, or a parcel of land, all which D
showed C. C accepted the proposal, but requested that he be given one
week to decide which item to take. Before the week was over, however,
armed men forcibly took the necklace and diamond ring from D’s
house.
D’S OBLIGATION BECAME A SIMPLE OBLIGATION TO DELIVER THE PARCEL OF LAND
194. S, a supplier of fresh fish from Lucena City, hire T, the owner of a
trucking company, for a fee of P3,000.00 to bring the fish catch of S to
the Dampa Market in Paranaque City which ordered the fish for a price
of P20,000.00. In so far as S concerned, his prestation in his contract
with T is:
A PAYMENT OF P3,000.00
195. The contract between S and T:
BOTH S AND T ARE OBLIGORS AND OBLIGEES OF EACH OTHER
196. A, B and C are solidary debtors of X and Y for P30,000.00 joint creditors:
X MAY COLLECT P15,000.00 FROM THE DEBTORS BUT NOT MORE THAN P5,000.00
FROM EACH OF THEM. THEREAFTER, HE IS NOT OBLIGATED TO GIVE ANY AMOUNT
TO Y.
197. was cleaning the glass window of his building when a large piece of
broken glass fell down directly hitting the roof of a car which was
parked below. C the owner of the car, was not around. Sensing that he
would be made liable for the damage on the car, O immediately went
down and cleaned the mess. O seeing that W had witnessed all that
happened, proposed to give W P2,000.00 so that W would not testify in
case a court case is filed. W agreed to the proposal and accepted the
money. Based on foregoing facts, which of the following statement is
INCORRECT?
THE AGREEMENT BETWEEN O AND W IS BINDING ON BOTH OF THEM
198. A, B and C are obliged to deliver a specific horse to X, Y and Z.
IF A VALID DEMAND IS MADE AGAINST ALL THE DEBTORS BUT DEBTOR C CANNOT
COMPLY WITH HIS PART OF THE OBLIGATION, THE OBLIGATION IS CONVERTED
INTO A MONETARY OBLIGATION TO PAY THE VALUE OF THE HORSE PLUS DAMAGES
199. A, B, and C are solidary debtors of X in the amount of P3,000.00. X
renounces the share of A and A accept the renunciation. Thereafter, B
becomes insolvent. Ultimately:
A WILL SHOULDER P500.00 WHILE C WILL SHOULDER P1,500.00
 200. A, B and C are solidary debtors of X, Y, and Z solidary creditors, in the
amount of P2,700.00. X renounces the whole obligation without the
consent of Y and Z. The debtors accepted the renunciation
THE WHOLE OBLIGATION IS EXTINGUISHED
201. On May 31, 2014, D promise to give a specific house and lot to C if C
passes the Bar Examination. On September 24, 2014, C took the Bar
Examination. The result of the Bar Examination which C took was
released on March 26, 2015 and C passed it. C shall be entitled to the
house and lot:
ON MAY 31, 2014

A and B are indebted to X and Y for 10,000.00. A and B share in the debt in the
ratio of 1:3; while X and Y share in the credit in the ratio of 2:3
202. How much may X collect from A if the debtors are joint debtors, while
the creditors are joint creditors?
P1,000.00
203. How much may X collect form A if there is active solidarity?
P2,500.00
204. How much may X collect from A if there is passive solidarity?
P4,000.00

205. D owes the following creditors: X, P20,000.00; Y, P30,000.00; and Z,

P50,000.00. D is insolvent so he offers to assign all his properties
(except those exempts from execution) to his creditors in payment of
his debts. The creditors accept the offer and are able to sell the debtor’s
properties for P70,000.00. Based on the foregoing facts, which of the
following statements is INCORRECT?

206. Leveriza, the owner of an apartment, leased the premises to Toribio.

The terms of the lease provide for a monthly rental of P6,000.00 which
Toribio must pat at the residence of Leveriza about two blocks from the
apartment. For the month of December, Toribio went to the residence
of Leveriza but the latter was not around to receive the payment. Not
wanting to go back, Toribio left the payment with Nograles, neighbor of
Leveriza, who promised to give the payment of Leveriza. However,
Nograles spent the amount he received for himself. Based on the
foregoing facts, which of the following statements is INCORRECT?