LESTER SOURCE

SUBJECT: LAW ON OBLIGATIONS AND CONTRACTS

PRELIM EXAMINATION

Question 1
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If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; It is
understood that the thing is lost when it __________________________.

Select one:
a. Perishes
b. Goes out of the commerce of man
c. Disappears in such a way that its existence is unknown or it cannot be recovered.
d. All of the choices

Question 2
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Under action of undoing, when the obligation consist of not doing and the obligor does
what has been forbidden him, it shall be undone at his expense.

Select one:
a. False
b. True

Question 3
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What is the objective of Novation?

Select one:
a. Change in the object of prestations
b. Merge of rights
c. Succession of creditor
d. None of the choices

Question 4
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Mora means _________________.

Select one:
a. Delay
b. Prestation
c. Negligence
d. Obligation

Question 5
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Under Estoppel, when oblige accepts the performance knowing its incompleteness or
irregularity and without expressing any protest or objection, the obligation is deemed
____________________________.

Select one:
a. Demandable
b. Fulfilled/complied with
c. Suspended
d. Incomplete

Question 6
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_________________________ obligation is based on equity and natural justice.

Select one:
a. Positive law
b. Civil
c. Natural
d. All of the choices

Question 7
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The following are kinds of negligence except:

Select one:
a. Culpa contractual
b. Culpa Aquilana
c. Culpa Levis
d. Culpa criminal

Question 8
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Under Pure Obligation: G.R. No. L-28602, 29 September 1970,The University of the
Philippines (UP) and Associated Lumber Manufacturing Company, Inc. entered into a
logging agreement whereby UP awarded logging concessions in one of its properties in
favor of the lumber company in consideration of royalties, forest fees, etc. Sometime after,
the lumber company failed to pay the said fees despite demands. To avoid termination of
the agreement, the lumber company executed an "Acknowledgment of debt and Proposed
Manner of Payments" whereby it was expressly stated therein that UP had "the right and
power" to rescind the logging agreement in case of default of the lumber company.
Subsequent thereto, the lumber company was in default again. As a result, UP informed the
lumber company that it had rescinded the logging agreement. The lumber company
claimed that it is only through a judicial declaration that a contract can be rescinded. Does
UP had the right to rescind the contract even without declaration?

Select one:
a. Yes, Send demand letter and afterwards a notice of rescission - A demand letter should
first be sent in order to place the other party in default. Subsequently, a notice of rescission
should be sent to the guilty party as the same is required by law.
b. Yes, it is not always necessary for the injured party to resort to court for rescission of the
contract. In exercising the power of rescission, the injured party is required to inform the
other party of the termination.
c. All of the choices
d. Yes, the provision granting UP the power to rescind upon default of the lumber company
is valid even without any court intervention.

Question 9
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Law as a source of obligation requires

Select one:
a. Agreement
b. Expressly determined
c. Not governed by itself
d. Presumed

Question 10
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Under Quasi-delict, Guardians are liable for damages caused by minors or incapacitated
person who are under their authority and live in their company.
Select one:
a. False
b. True

Question 11
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Elements of Obligation where in the obligee is bound to perform the prestation .

(obligor/debtor)

Select one:
a. Form in which obligation is manifested
b. Passive Subject
c. Efficient cause
d. Active Subject

Question 12
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__________________________is a kind of Prestation which consist in abstaining from such act.

Select one:
a. To give
b. Not to do
c. None of the choices
d. To do
Question 13
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The following are exempting circumstances, do not incur criminal liability but not exempt
from civil liability except:

Select one:
a. Person under 9 years of age
b. Acting under compulsion of an irresistible force
c. Insane person acting in lucid interval
d. Imbecile

Question 14
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Obligation arising from Law or 'Obligation ex lege' is imposed by law itself and must be
expressly or impliedly set forth and cannot be presumed.

Select one:
a. False
b. True

Question 15
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An employer may be civilly liable for the quasi delict or crime of his employee.

Select one:
a. Liability for fault for others
b. Diligence of Employers
c. Test of negligence
d. Pre contractual obligation

Question 16
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The following are requisites of condonation, except:

Select one:
a. The renunciation of the debt must be gratuitous or without any equivalent or
consideration.
b. The debtor must accept the remission
c. None of the choices
d. Debts must be existing and demandable at the time remission made

Question 17
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Elements of negligence are the following except:

Select one:
a. Failure to perform such duty as a prudent person.
b. Duty on the part of the defendant to protect the plaintiff from injury of which the latter
complains.
c. A person's conduct expected of a reasonably prudent person acting under similar
circumstances.
d. An injury to the plaintiff through such failure

Question 18
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Under obligations, an active subject, also known as the________________, who has the power
to demand the prestation

Select one:
a. Obligor
b. Complainant
c. Debtor
d. Obligee or creditor

Question 19
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Under subsidiary liability of a crime, innkeepers, tavern keepers or any other persons or
corporation, shall not be civilly liable for crimes committed in their establishment.

Select one:
a. False
b. True

Question 20
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When only one prestation is agreed upon, but the obligor may render another substitution,
the obligation is ________________________.

Select one:
a. Facultative
b. Solidary
c. Alternative
d. Joint

Question 21
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Obligation arising from quasi- delict is demandable not only for one's own acts or omissions
but also for those persons for whom one is responsible.

Select one:
a. Test of negligence
b. Diligence of Employers
c. Liability for fault for others
d. Pre contractual obligation

Question 22
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___________________________ is called when specifically stated.

Select one:
a. Express
b. Judiciary
c. Legal
d. Implied

Question 23
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Default ends from the moment creditor demands the performance of obligation.
Select one:
a. False
b. True

Question 24
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Mr. Chan broke a window of Ms Pat while playing pingpong. The accident would have not
happened had Mr Chan played far from the property of Ms Pat. In this case, Mr Chan has no
obligation to pay the damage caused to Ms. Pat by his act although there are no pre-
existing sources of obligation.

Select one:
a. True
b. False

Question 25
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In an obligation to pay taxes, the passive subject is the taxpayer, the active subject is the
government through the Bureau of Internal Revenue, the prestation is "to give,"
specifically__________________, the juridical tie is a source of obligation arising from law.

Select one:
a. None of the choices
b. To pay taxes
c. To evade taxes
d. Not to pay taxes

Question 26
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________________________ conditions as to possibility which are those contrary to good

customs or public policy and those prohibited by law shall annul the obligation which
depends on them.

Select one:
a. Impossible
b. Casual
c. Negative
d. Mixed

Question 27
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Parties may freely enter into any stipulations or contracts, provided _______________________. 

Select one:
a. Parties were forced and intimidated.
b. They are contrary public order or public policy
c. Unwise or unfavorable contract unwillingly entered into.
d. They are not contrary to law, morals, good customs,

Question 28
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A ______________________ is a meeting of minds between two persons whereby one binds

himself with respect to the other, to give something or to render service.

Select one:
a. Laws
b. Obligation
c. Civil Liability
d. Contract

Question 29
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In reciprocal obligations, there can only be delay in negative obligations (not to give or not
to do) not in positive obligations (to give or to do).

Select one:
a. False
b. True

Question 30
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Demand may be in any form, provided it can be proved. Burden of proof of demand on
creditor.

Select one:
a. True
b. False