111. B, Inc. contracted C, Inc.

, a stevedoring company, to load and stow a shipment of 146,288 cartons

of fresh green bananas and 15,202 cartons of fresh pineapples into the cargo hold of a vessel. The vessel
was docked at the port of Davao City and the goods were to be transported by it to the port of Inchon,
Korea. B, Inc. insured the shipment J Co.

C, Inc. loaded and stowed the cargoes aboard the vessel. The vessel set sail from the port of Davao City
and arrived at the port of Inchon, Korea. It was then discovered upon discharge that some of the cargo
was in bad condition. In a survey report, it was stated that 16,069 cartons of the banana shipment and
2,185 cartons of the pineapple shipment were so damaged that they no longer had commercial value.

B, Inc. filed a claim for the damages. J Co. evaluated the claim and thereafter sent a check in the amount
of $210,266.43 to B Inc., the latter then issued a subrogation receipt to J Co. Thereafter J Co. instituted
an action for damages against C, Inc.

Is C, Inc., under obligation to observe the extraordinary degree of diligence in the conduct of its
business?

A. No, because if there is no law or contract stating the degree of diligence which is to be observed in
the performance of an obligation then that which is expected of a good father of a family or ordinary
diligence shall be required.

B. Yes, because its participation was to load the cargoes no board the vessel which requires utmost care.

C. No, because its participation was to load the cargoes on board the vessel which requires ordinary
care.

D. None of the above.

112. X, an official of TESDA, boarded the LRT to be able to arrive in Caloocan in time for her 3 p.m.
meeting when her handbag was slashed and the contents were stolen by an unidentified person. Among
those stolen were her wallet and government-issued cellular phone. She then reported the incident to
the police authorities; however, the thief was not located, and the cellphone was not recovered. She
also reported the loss to her immediate superior, and she requested that she be freed from
accountability from the cellphone. The COA Auditor denied her request on the ground that she lacked
the diligence required in the custody of government property and was ordered to pay the purchase
value. Is X liable?
A. Yes, X is liable because putting her cellphone in her bag is not sufficient care of a cellphone while
travelling on board the LRT.

B. Yes, X is liable as she should have rode a jeep or bus.

C. No, X is not liable because riding the LRT is not a negligent act more so because X’s mode of transit
was influenced by time considerations.

D. No, X is not liable as she boarded the LRT to be able to arrive in Caloocan in time for her 3 p.m.
meeting.

113. D borrowed P50,000 from C. C dies before he has collected the debt leaving S, his son as heir.
Which of the following statements is correct?

A. S can collect from D although D and C did not agree that the right to the debt will pass on to the
heirs of C.

B. S cannot collect because the credit right is personal to C.

C. S can collect only if D and C agreed that the right to the debt will pass on the heirs of C.

D. S cannot collect because the law prohibits the transmission of the credit right.

114. X was the disbursing officer of the Ternate Beach Project of the Philippine Tourism in Cavite. In the
morning of July 1, 2018, a Friday, he went to Manila to encash a check covering the wages of the
employees. However, the processing of the check was delayed and was completed at about 3 p.m.
Nevertheless, he decided to encash the check because the employees would be waiting for their pay the
following day; otherwise, the workers would have to wait until July 5, the earliest time, when the main
office would open. At the time, he had two choices: (1) return to Ternate, Cavite that same afternoon
and arrive early evening; or (2) take the money with him to his house in Marilao, Bulacan, spend the
night there, and leave for Ternate the following day. He chose the second option, thinking it was the
safer one. Thus, at past 3 p.m., he took a jeep bound for Bulacan. While the jeep was on EDSA, the jeep
was held up and the money kept by X was taken. X chased the robbers and caught pleaded guilty. The
other robber who held the stolen money escaped. The Commission on Audit found X negligent because
he had not brought the cash proceeds of the check to his office in Ternate, Cavite for safekeeping, which
is the normal procedure in the handling of funds. Is X liable?

A. No, because the robbers attacked X in broad daylight in the jeep while it was on a busy highway and
in the presence of other passengers; hence, could not be said to be a result of his negligence.

B. Yes, because he should not have allowed the delayed encashment of the check.

C. No, because X chased the robbers and caught up with one robber who was subsequently convicted
robbery.

D. Yes, because he decided to encash the check despite knowledge of the fact that it was already late.

115. W received from X a pendant with diamonds to be sold on commission basis, but which W failed to
subsequently return because of a robbery committed upon her in the evening of January 16, 2018 while
walking alone in a dark alley carrying the said pendant. X files an action against W for recovery of the
pendant or is value, but W set up the defense that the robbery extinguished her obligations. Is W liable?

A. No, because the robbery took place without any concurrent fault on W’s part.

B. Yes, because the conduct of W in returning alone to her house in the evening carrying jewelry of
considerable value would have been negligence per se.

C. No, because the incident was unforeseen.

D. Yes, because W committed delay.

B

116. J is a usufructuary of a fishpond. J entered into a contract leasing the fishpond to Y for a period of 5
years. Paragraph of the lease contract states that the lessee “cannot sublease” the fishpond.

X is a businessman engaged in the operation of fishponds. Y persuaded X to take over the operation of
said fishpond. X acceded to the proposal. X and Y executed a written agreement whereby X would take
possession of the fishpond in consideration of the amount of P100,000.

X incurred expenses for the improvement of the fishpond. However, sometime in June 2018, J, went to
the fishpond and presented X with a letter showing that Y has surrendered possession of the fishpond to
him. Is Y liable for subleasing the fishpond?

A. No, because as a lessee he can transfer his rights over the subject matter of the contract of lease.

B. Yes, because as a lessee he cannot transfer his rights over the subject matter of the contract of lease.

C. No, because subleasing is not prohibited by law.

D. Yes, because when an obligation consists in not doing and the obligor does what has been forbidden
him, it shall also be undone at his expense. In this case, Y led X to incur expenses to improve the
operation of the fishpond.

117. It is an obligation which is demandable at once.

A. Pure obligation

B. Conditional obligation

C. Alternative obligation

D. Divisible obligation
A. (Art. 1179, NCC)

An obligation whose performance does not depend upon a future or uncertain event upon a past event
unknown to the parties and which is demandable at once. There is nothing to exempt the obligor from
compliance therewith (Air Philippines Corp. vs. International Business Aviation Services Phils., Inc., G.R.
No. 151963, September 9, 2004).

118. It is an obligation whose fulfillment or extinguishment depends upon a future and uncertain event.

A. Pure obligation

B. Conditional obligation

C. Alternative obligation

D. Obligation with a period

B. (Art. 1179, NCC)

An obligation where the acquisition of rights, as well as the extinguishment or loss of those already
acquired, shall depend upon the happening of the event which constitutes the condition (Art. 1181,
NCC).

119. A promissory note signed by X and dated March 31, 2018 is worded as follows. “I promise to pay Y
the sum of P75,000 provided that if she should fail in the May 2018 CPA board examination, he shall
return to me said amount.” The above note gives rise to an obligation with:

A. Suspensive condition

B. Casual condition

C. Resolutory condition

D. Answer not given

C

120. An obligation whose fulfillment or extinguishment depends upon a future and certain event.

A. Divisible obligation

B. Facultative obligation

C. Alternative obligation

D. Obligation with a period

D. (Art. 1193, NCC)