NORLAILA ABUBACAR SEC-1

INTRODUCTION TO LAW

What comes to your mind when you hear the word law? = You are mandatory to follow the rules
because if not, there is a consequence of your disobedience.

REVIEW QUESTIONS PART 1

Agree or Disagree/ Explain your answer

1. Civil obligations are enforceable in court. = Agree especially if the debtor fails to do his/her
obligation/s with the demand of the creditor. It would be unfair to the creditor, so the court could
force the debtor to accomplish his obligation to the creditor.

2. A is indebted to B in the sum of P20,000 without agreed interest. On due date, A paid P20,000

plus P500 to show his gratitude. A can still recover the P500 from B.

3. Obligations arising from law are presumed.

4. A as promised to deliverer to B five sacks of white sugar but one of the sacks was filled with

mixture of brown sugar. Although A fulfilled the obligation, he is still liable to pay damages.

5. In quasi-contract, the parties entered into a contract

6. G is a single mother. She (G) ran away with her boyfriend and left her three-year old child. E, her

neighbor, took in her child out of pity. Several months after, G appeared to claim back her child.

G is obliged to reimburse E of the expenses she incurred in taking care of the child under quasi-

delict.

7. A hastily left his fishpond to attend to some emergency. Over a telephone conversation, A asked

his neighbor B, who agreed (for commission) to look after his property while he was away. Several

weeks after, B went back and to his relief found his fishpond in good condition. B asked A to

reimburse him of expenses he incurred while managing the fishpond. A is obliged to reimburse B

of the expenses because of negotiorum gestio.

8. Suppose in problem no. 7, seeing that the fishpond was ready for harvest and A was nowhere to

be found, B who is in the business of managing fishponds on a commission basis, took possession

of the property, harvested the fish and sold the entire harvest to X. Thereafter, B borrowed money
from W and used the money to buy new supplies of fish fry and to prepare the fishpond for the

next crop.

a. What is the juridical relation between A and B during A’s absence?

b. Upon the return of A to the place, what are the obligations of B to A as regards the contract

with X?

c. Upon A’s return, what are the obligations of A as regards B’s contract with W?

d. What is the legal effect if A expressly ratifies B’s management and what would be the

obligations of A to B?

9. May the gestor or officious manager ask for compensation or salary for his effort?

10. During a storm, X saved the dog of his neighbor from drowning. X now is asking the dog owner for

some money as compensation. Identify the following:

a. Legal tie that which binds or connects the parties to the obligation. The tie in an obligation can
easily be determined by knowing the source of the obligation.

b. Active subject or creditor is someone (or an entity) to whom an obligation is owed.

c. Passive subject or debtor is the person who owes a creditor an obligation

d. prestation is the object of the obligation

CHAPTER 3 – DIFFERENT KINDS OF OBLIGATIONS

PART 1 – TRUE OR FALSE

1. A condition has for its requisites futurity and uncertainty.

True

2. A term or period has for its requisites futurity and uncertainty.

False

3. A period may or may not happen.

False

4. A condition will surely come to pass.

False
 5. If the suspensive condition is fulfilled, the obligation is extinguished.

False

6. If the resolutory condition is fulfilled, the obligation becomes effective.

False

7. If the resolutory condition is not fulfilled, the juridical relation is consolidated.

True

8. In suspensive condition, rights are not yet acquired, but there is a hope or expectancy that they
will soon be acquired.

True

9. In suspensive condition, rights are already acquired, but subject to the threat of extinction.

False

10. If the fulfilment of a potestative condition depends exclusively upon the will of the debtor, the
conditional obligation shall be void.

True

11. If the fulfilment of a potestative condition depends exclusively upon the will of the creditor, the
conditional obligation shall be valid.

True

12. A owes B P3,000.00 payable whenever he can pay or when his means will permit him to do so is
an obligation with a suspensive condition.

False

13. A to give B P50,000.00 if B will not kill C is a valid obligation.

True

14. An obligation subject to a suspensive condition is demandable at once.

False

15. An obligation which is demandable if a certain person dies is an obligation with a period.

True

16. The condition shall be deemed fulfilled if the debtor voluntarily prevents its fulfilment.

True

17. A condition may refer to a past event unknown to the parties.

True
 18. The period in an obligation always refers to the future.

True

19. Whenever a period is designated in an obligation, it shall be presumed to have been established
for the benefit of the debtor.

False

20. A agreed to pay B P100,000.00. Either of the party may file a suit to ask the court to fix a period
so that the parties may know when the obligation will be fulfilled.

False

21. A will give B P30,000 if his pet monkey dies within 30 days is an obligation with a period.

False

22. X will give Y P50,000 upon her (Y) reaching 18 years of age is an obligation with a period.

False

23.“I will give you P5,000 if you pass law 1 this semester provided that should you fail, you shall return
the amount to me” is an obligation subject to resolutory condition.

True

23. “I will give you P50,000 if I return home from abroad” is a valid obligation.

False

24. A binds himself to pay B P100,000 little by little. The parties may ask the court to fix the duration
of the period.

True

25. X borrowed P1M from Y payable after two years. X changed his residence without informing The
obligation becomes immediately demandable.

True

26. “I will give you P50,000 on the 389th day of the year” is a valid obligation with a period.

False

27. A binds himself to give B his one and only car if B passes Law 1 this semester and return it (car) if
B fails the subject. One night B drives the car while drunk and met an accident which totally
destroyed the car. Subsequently, B fails the subject. The obligation of B to return the car is
extinguished.

False
 28. X binds himself to give Y his one and only house if Y passes the October 2021 CPA exam. The
house was partially destroyed by fire due to X’s fault. Subsequently, Y passes the exam. Y may
either demand for the delivery of the house to him with damages or choose to rescind (cancel)
the obligation also with damages.

True

29. A will pay B P20,000 on or before November 5, 2020 is an obligation the period of which is
presumed to be for the benefit of both parties.

False

PARR 2 – TRUE OR FALSE

1. A person alternatively bound by different prestations shall completely perform all of them. A will
deliver to B a fountain pen, a calculator or a transistor radio. All the prestations shall be
completely performed by A.
False
2. The creditor in alternative obligation can be compelled to receive part of one and part of the
other undertaking. X will deliver to Y one sack of white rice or one sack of brown rice or one sack
of red rice. X can compel Y to receive ½ sack of white rice and ½ sack of brown rice.

False

3. In alternative obligation, the right of choice belongs to the debtor unless it has been expressly
granted to the creditor. K will deliver to L a celphone or a wristwatch or an earphone. K has the
right to choose which prestation he would like to perform unless the right of choice is expressly
given to L.
True
4. There is no delay or default in alternative obligations. W will deliver to Z a puppy, or a kitten or a
bird. Z made a demand upon him but W still failed to choose. There is no delay or default

True

5. In alternative obligations, once the choice is communicated to the creditor the obligation
becomes simple obligation.

True

6. In alternative obligations, the choice made by the debtor must be approved by the creditor.

False
7. In alternative obligations, the loss of one of the objects which are due because of the fault of the
debtor shall extinguish the obligation. A will deliver to B a celphone, or a camera or a stereo
speaker, all specific things. Before A can choose, the camera was lost because of his (A’s) fault.
The obligation is extinguished.

False

8. In facultative obligations, the right of choice belongs only to the debtor.

True

9. In facultative obligations, it is also necessary that the debtor communicates to the creditor his
decision to perform the substitute prestation.

True

10. In facultative obligations, the loss or impossibility of the prestation which is due will not
extinguish the obligation because of the availability of the substitute prestation. X will give Y a
specific camera or a laptop computer as a substitute. The camera was lost due to fortuitous
event. X’s obligation now is to deliver a laptop computer.
False
11. When there are two or more and/or two or more creditors in one and the same obligation, the
obligation is presumed to be a solidary obligation. X, Y and Z are indebted to A, B and C in the
sum of P30,000. Any one of the creditors may demand payment of P30,000 from any one of the
debtors.
False
12. In a joint obligation, any one of the debtors may be compelled to perform the whole obligation
subject to reimbursement by the co-debtors.

False

13. In solidary obligations, there is mutual agency or right of representation between and among
the creditors and same with the debtors.

True

14. In joint obligation, the insolvency of one of the debtors shall make the other co-debtors liable
for his share of the debt.

False

15. In solidary obligation, demand made by one of the creditors to one of the debtors is sufficient to
make all debtors in delay or default.

True
16. In joint obligation, demand made by one of the creditors will benefit him but not the other co-
creditors.

True

17. In solidary obligations, any one of the debtors may pay any one of the creditors except if
demand is made by one of the creditors, payment should be made to him only.

True

18. If one of the solidary debtors paid or performed the obligation after it has prescribed or has
become unlawful, he is not entitled to reimbursement.

True

19. In solidary obligations, any one of the creditors may perform an act which is beneficial to others
but not those which are prejudicial.

True

20. If a solidary debtor cannot reimburse his share to the debtor who paid the obligation, such share
shall be borne by the other co-debtors in proportion to the debt of each.

True

21. In solidary obligations, the act of one is the act of the others.

True

22. In joint indivisible obligations, the fulfilment of the obligation requires the concurrence of all the
debtors. A, B and C bind themselves to deliver to X a specific car valued at P3 million. The
fulfillment of the obligation requires the concurrence of all the debtors.

True

23. In joint indivisible obligations, if one of the debtors refuses to perform the obligation the
remedy of the creditor is converted into an action for damages.

True

24. Indivisibility of obligation may exist even if there is only one debtor and one creditor.

True

25. An obligation may be indivisible because of the stipulation of the parties.

True

26. A penal clause in an obligation is a coercive means to obtain compliance from the debtor.

True

27. As a general rule, the penalty takes the place of payment of damages and interest in case of
non-performance by the debtor.
 True

28. The courts may reduce the penalty not only when there is partial performance but also when
there is no performance by the debtor at all when the penalty is unconscionable or iniquitous.

True

29. A debtor can just pay the penalty instead of performing the obligation.

False

30. A penalty is an accessory obligation. Hence, the nullity of the principal obligation extinguishes
the penalty.

True

31. X binds himself to deliver to Y the following specific things: a celphone or a blue tooth speaker
or a head phone. All objects were successively lost due to X’s fault. Y can demand from X the
value of the last thing which was lost with damages.

True

32. A binds himself to give B a blue sapphire ring or a south sea pearl necklace or a diamond
necklace. B chooses the ring. A is bound to deliver it.

False

33. A and B are indebted to W the sum of P5,000. W may collect the whole amount either from A or
B.

False

34. X, Y and Z are indebted to C for P30,000. If Y is insolvent then X and Z are equally liable for Y’s
share in the obligation.

False

35. A is indebted to solidary creditors X, Y and Z in the sum of P60,000. Y made a demand from A
followed by X and Z. A paid the whole amount to X who ran away with the money. A is still liable
to Y and Z.

True

36. W is indebted to solidary creditors X, Y and Z. A total condonation or remission of the obligation
was made by Y without the knowledge of X and Z. The condonation is not valid.

False
 37. X, Y and Z are solidary debtors of E in the amount of P60,000 payable on October 15, 2020. X
paid the whole obligation on due date. A can ask for reimbursement of co-debtors’ share in the
obligation with interest from date of payment.

True

38. A will give B a specific sewing machine with P10,000 as penalty for non-performance. A fails to
perform. B can demand for performance of the obligation with payment of P10,000 as penalty.

False

39. X will give Y a specific laptop computer or a specific desk top computer as a substitute. The desk
top computer was destroyed due to X’s fault. X is liable to pay damages.

False

40. A, B and C are liable to deliver a specific house to E. Later on, B refuses to deliver the house. E
may file a suit against them for specific performance with damages for breach of the obligation.

False

CHAPTER 4

Extinguishment of obligations: Please note that the Article mentioned in each number is the answer to
the problem.

1. X delivers to Y his one and only dog in accordance with their contract. Is there payment and
therefore, the obligation is extinguished? (Art. 1232) = Yes there is a payment because
according to Art. 1232, payment means not only the delivery of money but also the
performance, in any other manner, of an obligation.
2. A owes B P10,000 payable on Oct.30, 2021. If on due date A has P9,000.00 only, what are the
effects or consequences on his obligation? (See par. 1 Art. 1248) = The obligation cannot be
extinguished because according to Art. 1248, par. 1, unless there is an express stipulation to
that effect, the creditor cannot be compelled partially to receive the prestations in which the
obligation consists. Neither may the debtor be required to make partial payments.
3. X binds himself to pay W P5,000 and whatever commission she will receive from Avon Co. for
the month of November 2021. Suppose the commission is not yet liquidated, can X pay W the
amount of P5,000 ahead of the commission? (Art. 1248 par.2) = Yes because according to Art.
1248, par. 2, however, when the debt is in part liquidated and in part unliquidated, the
creditor may demand and the debtor may effect the payment of the former without waiting
for the liquidation of the latter.
4. F agrees to give E a brand new Panasonic electric stand fan in black. If F delivers to E a brand
new Panasonic electric stand fan in navy blue, may the creditor refuse to accept the
performance by F? ( See Art. 1244) = Yes because according to Art. 1244, the debtor of a thing
cannot compel the creditor to receive a different one, although the latter may be of the same
value as, or more valuable than that which is due. In obligations to do or not to do, an act or
 forbearance cannot be substituted by another act or forbearance against the obligee’s will.
(1166a)
5. Referring to no. 4, if E knowing that the electric fan was not in the color agreed upon still
accepts it without any objection or protest, what is the effect? (Art. 1235) = The obligation
would be extinguished because according to 1235, when the obligee accepts the performance
knowing its incompleteness or irregularity, and without expressing any protest or objection,
the obligation is deemed fully complied with.

Note: failure to object or protest amounts to waiver or estoppel

Waiver is the abandonment or relinquishment of a right.

Through estoppel an admission or representation is rendered conclusive upon the person

making it, and cannot be denied or disproved as against the person relying thereon.

6. A owes B P5,000 guaranteed by X payable on Oct. 30, 2021. If C, a third person offers to pay A’s
obligation, is B obliged to accept the payment? What are the effects? (Arts. 1236-1238) = The
obligation will not fulfill because according to Art. 1236, the creditor is not bound to accept
payment or performance by a third person who has no interest in the fulfillment of the
obligation, unless there is a stipulation to the contrary.
7. Referring to no. 6, to whom should A pay his obligation? Give the effects. (Art. 1240) =
According to Art. 1240, Payment shall be made to the person in whose favor the obligation
has been constituted, or his successor in interest, or any person authorized to receive it. If the
creditor follow this, his/her obligation would be extinguish.
8. If payment or performance is made or rendered to a third person, is it valid or not? (Art. 1241
par.2) = Payment made to a third person shall also be valid insofar as it has redounded to the
benefit of the creditor.
9. X , 18 years old, borrows P2,000 from Y, 16 years old. On due date X pays Y the amount of
P2,000. Is the payment valid? (Art. 1241 par. 1) = Payment to a person who is incapacitated to
administer his property shall be valid if he has kept the thing delivered, or insofar as the
payment has been beneficial to him.
10. A owes B P10,000. On due date B goes to A’s residence to collect the payment and A is ready to
pay the full amount. However, they agreed that instead of cash B will accept A’s wristwatch
worth more or less P10,000 as full payment. What special form of payment is this? (Art.1245) =
Dation in payment, whereby property is alienated to the creditor in satisfaction of a debt in
money, shall be governed by the law of sales.
11. X owes several creditors in the amount of P1M all due and demandable. A has no enough
money to pay for all his obligations but he owns personal and real properties. May A use these
properties to pay off his obligations? (Art.1255) = Yes because according to Art. 1255, the
debtor may cede or assign his property to his creditors in payment of his debts.
12. A owes B the following: P1,000 due and demandable and P500 due (not yet due). A has P500
only. To which debt is the payment to be applied? Who shall apply the payment? What if both
debts are due and demandable? What if both debts are of the same amount, let’s say P500 and
are already due? (Arts. 1252-1254) =
13. What if the debtor refuses to accept your payment without valid reason? What if he is willing to
accept the payment but he does not want to issue a receipt? What will you do? (Art. 1256)
14. Legal tender is anything recognized by law as a means to settle a public or private debt or
meet a financial obligation, including tax payments, contracts, and legal fines or damages. The
national currency is legal tender in practically every country. A creditor is legally obligated to
accept legal tender toward repayment of a debt.
15. A pays B the amount of P100,000 by way of a check. If B accepts the check, is A considered to
have paid the obligation? (Art. 1249 par. 2) = Yes because according to 1249, par. 2, the
delivery of promissory notes payable to order, or bills of exchange or other mercantile
documents shall produce the effect of payment only when they have been cashed, or when
through the fault of the creditor they have been impaired.
16. X binds himself to deliver to B a specific object. While the object is in his possession it was lost.
What is the presumption under the law? Is there such a presumption when there’s fortuitous
event? (Art.1265) = Whenever the thing is lost in the possession of the debtor, it shall be
presumed that the loss was due to his fault, unless there is proof to the contrary, and without
prejudice to the provisions of Article 1165. But if there is a fortuitous event, then this
presumption wouldn’t be applied to the debtor is not liable of negligence.
17. A binds himself to deliver a specific truck to B. Before delivery, the truck engine was stolen
without fault on the part of A. Since there was only a partial loss, is the obligation of A
extinguished or not extinguished? (Art.1264) = The obligation would be extinguished because
according to Art. 1264, the partial loss is not fault by the debtor.
18. Condonation or Remission of the debt is an act of liberality where the creditor gives up his
right against the debtor, either in whole or in part, resulting in the extinguishment of the
latter's obligation.
19. X is indebted to W in the sum of P2,000 evidenced by a promissory note executed in long hand
by X. If W returns the promissory note to X, what is the presumption? (Art. 1271 par. 1) =
20. A and B are indebted to X in the sum of P2,000 evidenced by a promissory note executed by the
former (A and B). If the promissory note is found in the possession of A, what is the
presumption? Does it mean that the obligation of both A and B are condoned or only A’s share
in the debt? What if the obligation of A and B is solidary? (See Joint & Solidary obligations)
21. W is indebted to Y for P5,000 secured by a pledge of wristwatch. If Y condones the debt in the
sum of P5,000, what is the effect? (Art.1273) = The renunciation of the principal debt shall
extinguish the accessory obligations; but the waiver of the latter shall leave the former in
force.
22. Confusion or Merger of rights – meeting in one person the qualities of both creditor and
debtor in one and the same obligation.
23. A borrows P5,000 from B and executed a negotiable promissory note payable to the latter on
January 15, 2022. B pays the promissory note to C for a certain celphone. C pays the promissory
note to D for repairing the former’s car. D pays the promissory note to A for a specific puppy
sold to him by A. There is confusion or merger of rights in the person of A.
24. D owes C P1,000 the same being evidenced by a promissory note with G as guarantor.
Subsequently, C indorses back the promissory note to D. D, therefore became the debtor and
creditor with respect to the same obligation resulting in the extinguishment of the obligation. As
such, the accessory obligation of guaranty of G is also extinguished. (Art, 1276)
25. Suppose in number 24, C indorses the promissory note to F and the latter indorses the same
promissory note to G, then the characters of creditor and guarantor are merged in the same
 person. In such a case, the accessory obligation of guaranty is extinguished but the principal
obligation of D still subsists. Because G is now the creditor, he can demand from D the amount
of P1,000. (Art. 1276)
26. COMPENSATION takes place when two persons, in their own right, are creditors and debtors of
each other.
27. Legal compensation- This takes place when compensation extinguishes the two debts in their
concurrent amounts even without the express agreement of the parties, that is,
extinguishment by operation of law or automatically as when all the requisites in Art. 1279
are present.
28. Voluntary compensation- This takes place when there is compensation by agreement of the
parties.
29. X owes Y P500 which is now due and demandable. Y also owes X P500 also due and
demandable. There is compensation. (Arts. 1278; 1279)
30. D owes C P1,000. In another obligation, X owes D P1,000 with C as guarantor. Compensation will
not take place because D and C are not bound principally to each other, C being merely a
guarantor in another obligation. (Art. 1279 par. no. 1)
31. X owes Y P1,000 with G as guarantor due and demandable. Y owes X P1,000 due and
demandable. Suppose X becomes insolvent and Y demands payment from G (as guarantor), G
may set up compensation as regards the debt of Y to X. (Art. 1280)
32. Compensation may be total or partial. (Art.1281)
33. Facultative compensation- when compensation can be set up only by one of the parties (Art.
1287 par. 1; 1288)
34. The parties may agree upon the compensation of debts which are not yet due (Art. 1282)
35. X will deliver to Y ten (10) sacks of first class white rice due and demandable. Y is also obliged to
deliver to X ten (10) sacks of first class white rice due and demandable.
36. A will deliver to B a narra dining table. B binds himself to deliver to A a bed made of dao wood.
Both obligations are due and demandable. There will be no compensation because the things
which are the object of the obligation are not of the same kind or nature.
37. Compensation shall not take place in deposit/depositum, commodatum, in support and in debts
arising from a crime (Arts. 1287; 1288)
38. NOVATION is the change or modification of obligation. The change may be done by (a) replacing
an old obligation with a new one (b) replacing the original debtor with a new debtor
(Substituting the person of the debtor) (c) replacing the original creditor with a new creditor
(Subrogating a third person in the rights of the creditor)
39. NOVATION IS NEVER PRESUMED. (See Art. 1292)
40. 1292. In order that an obligation may be extinguished by another which substitute the same, it
is imperative that it be so declared in unequivocal terms, or that the old and the new obligations
be on every point incompatible with each other.
41. X binds himself to give Y a male German shepherd puppy. Later on, X agrees to give Y a male
Labrador puppy. Is there novation? (Art. 1292) = Yes because there is a change of obligation
which is, instead of German shepherd, he gives Labrador puppy instead
 42. A agrees to deliver to W 50 bottles of multivitamins. But later they agreed to change the object
to ecstasy party drug. Is there novation? Is A still obliged to sell to W 50 bottles of
multivitamins? (Art. 1297) = Yes there is a novation because they change the obligation from
delivering 50 bottles of multivitamins to party drugs, but the new obligation is void because it
is illegal. Since, the new obligation is invalid, the old obligation should subsist, so A is still
obliged to sell multivitamins.
43. A owes B P5,000 due on December 31, 2021. X, a third person, went to B and obliged himself to
pay the debt of A. If B accepts X in place of A, then a substitution of debtor by EXPROMISION
takes place and the obligation of A to B is extinguished and a new one (the obligation of X to B)
is created resulting in novation. (Art. 1294)
44. X obliged himself to deliver to Y 20 sacks of first class white rice. Later on, X brought to Y his
friend W and proposed to Y that W will take his place as debtor with respect to the obligation to
deliver 20 sacks of first class white rice. If Y agrees to the proposal of X, then X’s obligation is
extinguished and a substitution of debtor by DELEGACION takes place resulting in novation of
the obligation. In this kind of novation, the consent of the three parties is necessary. (Art. 1295)
45. Subrogation is the substitution of one person in the place of a creditor with reference to a lawful
claim or right, giving the former all the rights of the latter including the right to employ all
remedies to enforce payment.
46. Kinds of subrogation:
47. Conventional subrogation takes place by express agreement of the parties ( debtor, original
creditor and third person (new creditor)

Ex. A owes B P5,000. With the consent of A, B entered into a contract assigning (transfer) his credit to X.

1. Legal which takes place by operation of law even without the agreement of the parties

Ex.

X owes St. Peter funeral parlor the sum of P10,000. X also owes W P3,000. Knowing the debt of X to St.
Peter, W pays the obligation without the consent of X. In this case, W is subrogated in the rights of St.
Peter as preferred creditor and he (W) is entitled to be paid ahead of other obligations.

A owes B P5,000 guaranteed by X. A becomes insolvent. X paid the obligation of A to B. X is subrogated

in the rights of B.

W owes Z P10,000. With the consent of W, X paid W’s indebtedness to Z. X is subrogated in the rights of
Z.