Credit Transactions

Quiz 1

Part One
True or False
Consider the statement true only when it is absolutely true.

1. Third persons who are not parties to the principal obligation may secure the latter by
mortgaging their own property. TRUE, this is expressly allowed under Art. 2085, ¶ 2.

2. A mortgage may also be given as security for future debts, the amount of which is not yet
known. TRUE, see China Banking Corp. v. CA (1997).

3. The indivisibility of a pledge or mortgage is not affected by the fact that the debtors are not
solidarily liable. TRUE, as provided in Art. 2090.

4. A guaranty may be entered into without the knowledge or consent, or against the will of the
principal debtor. TRUE, a guaranty exists for the benefit of the principal creditor, not for
the principal debtor who is not a party to the guaranty. See Art. 2050.

5. A compromise between the creditor and the principal debtor benefits the guarantor. TRUE, as
provided under Art. 2063.

6. The bailee in commodatum is liable for the loss of the thing, even if it should be through a
fortuitous event. FALSE, only in specific situations outlined in Art. 1942 (1)-(5).

7. The bailor cannot demand the return of the thing loaned till after the expiration of the period
stipulated. FALSE, or after the accomplishment of the use for which the commodatum has
been constituted.

8. The bailor shall be liable to the bailee for the damages which the bailee may suffer by reason of
the flaws of the thing loaned. FALSE, the bailor has to know the flaws and not advise the
bailee of the same to be liable.

9. Fixed, savings, and current deposits of money in banks and similar institutions shall be
governed by the provisions concerning depositum. FALSE, provisions concerning simple
loan.

10. A deposit is constituted from the moment there is a meeting of the minds upon the thing which
is the object of the contract. FALSE, Art. 1962.

11. The bailor in commodatum acquires the use of the thing loaned but not its fruits; if any
compensation is to be paid by him who acquires the use, the contract ceases to be a
commodatum. FALSE, it is the bailee who acquires the use of the thing etc.

12. Consumable goods may be the subject of commodatum. TRUE, provided that the purpose of
the contract is not the consumption of the object, as when it is merely for exhibition.
 Part Two
Multiply Choice
Choose the best answer. Write the letter only.

1. A contract of commodatum
a. May be gratuitous
b. May be onerous
c. Essentially gratuitous
d. Essentially onerous
C

2. The contractual relation is known as a precarium if:

a. The borrower has no obligation to pay interest
b. The lender may demand the return of the thing borrowed at will
c. The depositary can demand for the return at will
d. The depositary has the right to retain the thing
e. The depositary can use the thing
B

3. The following are contractual bailments, except:

a. Mutuum
b. Commodatum
c. Deposit
d. Guaranty
D

4. This bailment is solely for the benefit of the bailor:

a. Mutuum
b. Commodatum
c. Gratuitous deposit
d. Onerous deposit
e. Gratuitous guaranty
C

5. The following are real contract/s:

a. Mutuum
b. Commodatum
c. Deposit
d. a & b
e. a & c
f. a, b & c
F

6. A deposit made in compliance with a legal obligation is a:

a. Judicial deposit
b. Extra-judicial deposit
c. Voluntary deposit
d. Necessary deposit
D
7. The depositor is obliged to reimburse the depositary for the expenses he may have incurred for
the preservation of the thing deposited if:
a. The deposit is onerous
b. The deposit is gratuitous
c. The depositary has the right to use the thing
d. The thing deposited is fungible
B

8. The pledge is void if the

a. Pledgor’s consent was vitiated
b. Pledgor is suffering civil interdiction
c. Pledge is not in writing
d. Pledge is not in a public instrument
B

9. A contract which is both a principal and a real contract is:

a. Mutuum
b. Pledge
c. Mortgage
d. Antichresis
e. Lease
A

10. A contract which is both a real and an accessory contract is:

a. Commodatum
b. Deposit
c. Mortgage
d. Pledge
e. Antichresis
D

11. In the following contract/s, ownership passes to the other party:

a. Mutuum
b. Commodatum
c. Deposit
d. A&B
e. A&C
f. A,B,&C
A
12. If a personal property is delivered to a creditor to secure the performance of an obligation, the
contract is a:
a. Pledge
b. Chattel mortgage
c. Real mortgage
d. Antichresis
e. Sale
A
13. This bailment is solely for the benefit of the bailee:
a. Mutuum
b. Commodatum
c. Gratuitous deposit
d. Onerous deposit
e. Gratuitous guaranty
B
Torts & Damages
Quiz 1

Part One
True or FalseConsider the statement true only when it is absolutely true.

1. The defense of a good father of a family is a complete and proper defense in breach of contract.
FALSE, it is a good and proper defense in quasi-delicts.

2. An act punished by law may be the basis of a liability under quasi-delict.

TRUE.

3. The liability of the employer for the acts of its employees is a direct and primary liability.
FALSE, it is vicarious liability.

4. The pendency of a criminal action is a bar to an action under quasi-delict for the same act or
omission.
FALSE.

5. In an action under quasi-delict, there is no presumption of negligence.

FALSE, there are instances where negligence is presumed (e.g. res ipsa loquitur)

6. The relationship of pater familias applies to the vicarious liability of employers.

TRUE.

7. In motor vehicle mishaps, the owner is solidarily liable with his driver, if he was inside the vehicle
at the time of the mishap.
FALSE.

8. The State is responsible when the damage has been caused by an official to whom the task done
properly pertains.
FALSE.

9. The father and, in case of his death or incapacity, the mother, are responsible for the damages
caused by their children who live in their company.
FALSE.

10. The owner of the building or a part thereof, is responsible for damages caused by things thrown or
falling from the same.
FALSE.

Part Two
Multiple Choice.
Choose the best answer. Write the letter only.

11. As a source of obligations, quasi-delict may be distinguished from delict in that, in quasi-delict:

a. Proof beyond reasonable doubt is required

 b. Right violated is a private one
c. There must be no pre-existing contractual relation between the parties
d. The defence of a ‘good father of a family’ is a complete and proper defence
B

12. As a source of obligations, quasi delict may be distinguished from contract in that, in quasi-delict:

a. There must be no pre-existing contractual relation between the parties

b. The defense of “good father of a family” is a complete and proper defense
c. Negligence is merely incidental to the performance of an obligation
d. There is a presumption of negligence as long as there was breach
B

13. This is NOT a requirement for a liability under quasi-delict to arise:

a. Act or ommission
b. Fault or negligence
c. Damage or injury
d. Pre-existing contractual relation between the parties
D

14. A conclusive presumption of negligence arises when

a. An animal causes damage

b. The death or injury results from the defendant’s possession of dangerous weapons or
substances
c. The driver involved in a vehicular mishap had been found guilty of violating traffic
regulations at least twice within the preceding two months
d. The driver, at the time of the mishap, was violating any traffic regulation
e. None of the above
E

15. This pertains to the liability of a person resulting from the negligent act of another who is
considered to be under the control and supervision of the former.

a. Direct
b. Subsidiary
c. Solidary
d. Vicarious
e. None of the above
D

16. The following may be held liable under quasi-delict, except:

a. Insane persons
b. Elective officials of the governement
c. Public corporations
d. All of the above
e. None of the above
 E

17. Where both parties are negligent, but the negligent act of one is appreciably later in time than that
of the other, or when it is impossible to determine whose fault or negligence should be attributed to
the incident, the one who had the last clear opportunity to avoid the impending harm and failed to
do so is chargeable with the consequences thereof. This doctrine is known as:

a. Proximate cause
b. Last clear chance
c. Res ipsa loquitur
d. Intervening cause
e. Concurrent cause
B

18. This is only a partial defense:

a. Fortuitous event
b. Contributory negligence
c. Double recovery
d. Prescription
e. None of the above
B

19. Proof of pecuniary loss is required for the award of:

a. Moral damages
b. Dano emergente
c. Exemplary damages
d. Liquidated damages
e. Nominal damages
B (Daño emergente: damages for the loss suffered by the plaintiff)

20. In case of death caused by a quasi-delict, the following may be awarded except:

a. Interest
b. Nominal damages
c. Indemnity
d. Moral damages
e. None of the above
B