QUIZ 1 c. Negotiorum gestio 10.

D'owes C P200,000 but the debt

1. It is a juridical necessity to give, to
do or not to do.
a. Contract
b. Obligation
c. Law
d. Memorandum of Agreement
2. A mango tree in the land of Osni is
reclining towards the road. All of a
sudden, without a storm or an
earthquake or even a strong wind, the
tree fell hitting a car belonging to
Yassle causing a P20,000 damage.
The liability of Osni to Yassie arises
from
d. Solutio indebiti had already prescribed. If D, knowing
that it has prescribed, nevertheless
6. The officious manager or gestor is paid C, he cannot later on get back
liable for any fortuitous event, except what he voluntarily paid C. This is an
example of a:
a. If he fails to return the
property or business after a. Natural obligation.
demand by the owner. b. Personal obligation.
b. If he has preferred his own c. Moral obligation.
interest to that of the owner. d. Civil obligation.
c. If he has undertaken risky
operations which the owner 11. It refers to an act or omission
was accustomed to embark which causes damage to another,
upon. there being fault or negligence. The
d. No If he assumed the parties has no pre-existing contractual
management in bad faith. relation.

a. Contracts. 7. X by mistake delivered to A and B a a. Quasi-delict

b. Quasi-delict sum of money which should have b. Solutio indebiti
c. Crime been delivered to C and D. X now c. Negotiorum gestio
d. Law. demand the return of the same from A d. Quasi-contract
e. Quasi-contracts. and B. The liability of the latter for the
sum of money to which they are not 12. I. An obligation is a power,
3. It is a juridical relation whereby a entitled shall befo privilege, or immunity guaranteed
person may demand from another the under a construction, statute or
observance of a determinative a. A and B shall be liable jointly decisional law, or recognized as a
conduct, and in case of breach, may b. They are not liable result of long usage, constitutive of a
demand satisfaction from the assets c. A and B shall be liable legally enforceable claim of one
of the latter. solidarily person against the other.
d. X has no right to recover
a. Action II. For every right enjoyed by any
b. Law 8. Which of the following is not an person, there is a corresponding
c. Contract obligation arising from law? obligation on the part of another
d. Obligation person to respect such right.
a. Quasi-delict
4. It is one by which a party sues b. Quasi-contract a. Only 1 is true
another for the enforcement or c. Delict b. Only II is true
protection of a right, or the prevention d. Contract c. Both are true
or redress of a wrong. d. Both are false
9. A system of norms or rules of a
a. Administrative action character general and common which 13. Culpa aquiliana as distinguished
b. Criminal action regulate the relations of persons, from culpa contractual
c. Special Proceeding individual or collective, and which
d. Civil action protects the person in his personality a. The source of liability is the
as well as his interest both moral and defendant's negligent act or
5. Where X voluntarily takes charge of patrimonial. omission itself.
the neglected business of Y without
the latter's authority where a. Business law b. Proof of due diligence in the
reimbursement must be made for b. Criminal law selection and supervision of
necessary and useful expenses, there c. Taxation law employees is not available as
is a: d. Civil law a defense.

a. Quasi delict c. The negligence of the

b. Quasi contract defendant is merely an
 incident in the performance of 18. If something is received when d. Answer not given
the obligation. there is no right to demand it, and it
was unduly delivered through mistake, Points earned: 1 out of 1
d. Proof of the contract and of its the obligation to return it arises.
breach and of its breach is 3. When does delay begins?
sufficient prima facie to a. Negotiorum gestio
warrant recovery. b. Quasi-contract a. Delay begins from the time
c. Solutio indebiti the obligor actually
14. It is a meeting of minds between d. Quasi-delict defaulted from his
two persons whereby one binds obligation. Delay begins
himself, with respect to the other, to 19. The following are the essential from the time the obligee
give something or to render some elements of an obligation, except: judicially or extrajudicially
service. demands from the obligor
a. Debtor the performance of the
a. Contracts b. Presentation obligation.
b. Law c. Juridical tie b. Delay begins from the time
c. Quasi-delict d. Creditor the obligor defaulted from his
d. Quasi-contact obligation within 5 days from
Points earned: 1 out of 1 the maturity of his obligation.
15. In delict or acts or omissions c. Delay begins from the time
punished by law, what is not included 20. A civil liability which involves the the obligor defaulted from his
in civil liability? return of the object of the crime obligation within a reasonable
whenever possible, plus allowances time from the maturity of his
a. Indemnification for for any deterioration or diminution of obligation.
consequential damages value as may be determined by the
b. Reparation of the damaged court to the rightful owner-
caused 4. It signifies all of those things which
c. Interest a. reparation have for their object the
d. Restitution b. restitution embellishment, use or preservation of
c. indemnification another thing which is more important
16. I. Negligence is the failure to d. imprisonment and to which they are not incorporated
observe that degree of care, or attached.
precaution, and vigilance that the Quiz 2
circumstances justly demand. a. Determinate thing
1. A thing is determinate when it is b. Accessions
II. Negligence is the failure to observe particularly designated or physically c. Indeterminate thing
for the protection of the interests of segregated from all other. of the same d. Accessories
another person that degree of care, class.
precaution, and vigilance which the 5. The following statements explain
circumstances justly demand, a. Generic thing negligence, except:
whereby such other person suffers b. Indeterminate thing
injury. c. Immovable thing a. Is the conduct that creates an
d. Specific thing undue risk of harm to others.
a. Only I is true b. It is the failure to observe that
b. Only II is true 2. Unless the law or stipulation of the degree of care, precaution
c. Both are true parties requires another standard of and vigilance that the
d. Both are false care, the obligation to give a thing circumstances justly demand.
carries with it the obligation to take c. It is expected from, and
17. It is one of the essential elements care of it with ordinarily exercised by, a
of an obligation person who seeks to satisfy
a. Extraordinary diligence a legal requirement or to
a. money discharge an obligation.
b. An object or prestation b. Utmost diligence d. It is the omission to do
c. A maker or drawer c. Diligence of a good father something which a
d. A drawee of a family reasonable man, guided by
 considerations that ordinarily 10. I. When what is to be delivered is c. Both are true
regulate the conduct of a generic thing, the creditor may d. Both are false
human affairs, would do, or compel the debtor to make the
doing something that a delivery.
prudent and reasonable man II. If the thing to be delivered is a 15. I. If the object of obligation is a
would not do. determinate thing, the creditor may generic thing, the loss or destruction
ask that the obligation be complied of anything of the same kland even
6. Which of the following is not an with at the expense of the debtor without the debtor's fault and before
obligation of the debtor in specific real he has incurred in delay will not have
obligation? a. Only I is true the effect of extinguishing the
b. Only II is true obligation.
a. To pay damages in case of c. Both are true
breach of the obligation d. Both are false Points earned: II. An obligation to pay money is
b. To deliver the accessions and 1 out of 1 generic.
accessones.
c. To deliver the specific or 11. Delay in the fulfilment of an a. Only I is true
determinate thing which he obligation by reason of a cause b. Only 11 is true
has obligation himself to give. imputable to the debtor. c. Both are true
d. To take care of the thing d. Both are false
extraordinary diligence a. Creditor's default
b. Mora accipiendi 16. It is the power belonging to a
7. I.. The highest degree of diligence c. Compensatio morae person over a specific thing, without a
is expected, and high standards of d. Mora solvendi passive subject Individually
Integrity and performance are determined, against whom such right
required of the banking business. 12. Are those which arise from the may be personally exercised.
same cause, and which each party is
II. The degree of diligence required of a debtor and a creditor of the other, a. Definite right
banks is more than that of a good such that the obligations of one is b. Personal ight
father of a family. dependent upon the obligation of the c. Indefinite right
other? d. Real right
a. Only I is true
b. Only II is true a. Specific obligation 17. I. In compensatio morae, the
c. Both are true b. Natural obligation parties cancel out the effects of
d. Both are false c. Unilateral obligation default, such that it is as if no one is
d. Reciprocal obligation guilty of delay.
8. These are the spontaneous
products of the soil, and the young 13. Delay of the oblige or creditor to II. In reciprocal obligations, as in a
and other products of animal. accept the delivery of the thing which contract of sale, the general rule is
is the object of the obligation. that the fulfillment of the parties'
a. Industrial fruits respective obligations should be
b. Real fruits a. Debtor's default simultaneous.
c. Civil fruits b. Mora accipiendi
d. Natural fruits c. Mora solvendi a. Only 1 is true
d. Compensatio morae b. Only II is true
9. The object thereof is designated c. Both are true
merely by its class or genus without 14. I. If a person obliged to do d. Both are false
any particular designation or physical something fails to do it, the same shall
segregation from all others of the be executed at his cost. 18. Which of the following is not a
same class. right of the debtor in generic real
II. The same rule shall be observed if obligation?
a. Movable thing he does it in contravention of the tenor
b. Determinate thing of the obligation. a. To ask that the obligation be
c. Specific thing complied with at the expense
d. Generic thing a. Only I is true of the debtor.
b. Only II is true
 b. To compel specific
performances.
c. To recover damages in case
of breach of the obligation
d. To ask for performance of the
obligation.
19. I When an employee causes
damage due to his own negligence
while performing his own duties, there
arises the presumption that his
employer isnegligent, rebuttable only
by proof of observance of the
extraordinary diligence
II. In the selection of prospective
employees, employers are required to
examine their employees as to their
qualifications, experience and service
records.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
20. 1. It is presumed that a person
driving a motor vehicle has been
negligent if at the time of the mishap,
he was violating any traffic
regulations.
II. The Civil Code characterizes
negligence as the ormission of that
diligence required by the nature of the
obligation and comesponds with the
orcumstances of the persons, of the
time and of the place.
a. Only I is true
b. Only 11 is true
c. Both are true
d. Both are false
21. Under Article 1164, the creditor
has a right to the fruits of the thing
from
a. the time the obligation to
deliver the thing arises
b. the time the thing is delivered.
c. the time the fruits are
delivered.
d. the time the sale is perfected,
22. These are produced by lands of
any kind through cultivation or labor.
a. Real fruits
b. Civil fruits
c. Natural fruits
d. Industrial fruits
23. These are the rents of buildings,
the price of leases of lands and other
property and the amount of perpetual
or life annuities or other similar
income.
a. Real fruits
b. Natural fruits
c. Industrial fruits
d. Civil fruits
24. Default on the part of both parties
because neither has completed their
part in their reciprocal obligation.
a. Mora accipiendi
b. Debtor's default
c. Compensatio morae
d. Mora solvendi
25. When the amount is known or is
determinable by inspection of the
terms and conditions of the relevant
promissory notes and related
documents.
a. Debt is due
b. Debt is demandable
c. Debt is liquidated
d. Debt is unliquidable
26. It signifies all of those things which
are produced by the thing which is the
object of the obligation as well as all
of those which are naturally or
artificially attached thereto.
a. Accessories
b. Accessions
c. Determinate thing
d. Indeterminate thing
27. Under Article 1163, unless the law
or the stipulation of the parties
requires another standard of care,
every person obliged to give
something is also obliged to take care
of it with
a. extraordinary diligence
b. diligence of a father of a good
family utmost diligence
c. diligence of a good father of
a family
28. It is the power of one person to
demand of another, as a definite
passive subject, the fulfillment of a
prestation to give, to do, or not to do.
a. Personal right
b. Definite right
c. Real right
d. Indefinite right
29. Which of the following is not a
requisite of default?
a. That the debtor delays
performance.
b. That the creditor requires the
performance judicially and
extrajudicially.
c. That the debtor defaulted
on maturity date of the
obligation.
d. That the obligation be
demandable and already
liquidated.
Points earned: 1 out of 1
30. Cha Yu-Ri obliged herself to
deliver a determinate pig to Jo
Gang-Hwa on December 31, 2019.
When the date of the delivery of the
pig arrived, the pig has already seven
offsprings. The seven offsprings was
born before the obligation to deliver
the pig has arisen and Jo Gang-Hwa
has not yet paid the purchase price.
Cha Yu-Ri should deliver the
a. mother pig only. (correct
answer, your response)
b. Cha Yu-Ri can refuse to
deliver the goods.
c. the mother pig as well as the
seven offsprings.
d. Jo Gang-Hwa should pay to
Cha Yu-Ri the seven
offspirings.
31. Extreme care that a person of
unusual prudence exercise to secure
rights or property.
a. Ordinary diligence
b. Due diligence
c. Diligence of a good father of a
family
d. Extraordinary diligence
32. I. When the plaintift's own
negligence was not the immediate
and proximate cause of his injury, he
cannot recover damages.
II: If the plaintiff's negligence was only
contributory, the immediate and
proximate cause of
the injury being the defendant's lack
of due care, the plaintiff may recover
damages, but the courts shall mitigate
the damages to be awarded,
a. Only I is true
b. Only 11 is true
c. Both are true
d. Both are false
33. Which of the following is a
determinate thing?
a. A Toyota Fortuner with
Plate No. SJB 349 (correct
answer, your response)
b. A car.
c. A 2020 Mitsubishi Montero
Sport GLS 2WD
d. A car owned by Juan de la
Cruz
34. In the following instances, demand
is not necessary, except.
a. When the obligation or the
law expressly so declares.
In unilateral obligation.
b. When the demand would be
useless, as when the obligor
has rendered it beyond his
power to perform.
c. When from the nature and the
circumstances of the
obligation it appears that the
designation of the time when
the thing is to be delivered or
the service is to be rendered.
was a controlling motive for
the establishment of the
contract.
35. I. Mere delinquency in payment
does not necessarily mean delay in
the legal concept.
II. Default generally begins from the
moment the creditor demands the
performance of the obligation
a. Only I is true
b. Only 11 is true
c. Both are true
d. Both are false
Module 3
1. Obligations for whose fulfillment a
day certain has been fixed, shall be
demandable only when that day
comes.
a. Ex die
b. In diem
c. Resolutory period
d. Suspensive period
2. There are several conditions, all of
which must be realized.
a. divisible condition
b. alternative condition
c. indivisible condition
d. conjunctive condition
3. An obligation whose performance
of the prestation cannot be fulfilled in
parts.
a. obligation with a penal clause
b. divisible obligation
c. alternative obligation
d. indivisible obligation
4. A owes B P150,000 due on June
30, 2018. A executed a mortgage in
favor of B on A's building. On June
10, 2018, the mortgaged building was
totally lost due to an earthquake. On
June 12, 2018, B demanded payment
from A. Is B's demand valid?
a. No. The mortgage was
extinguished because the
object of the contract was lost
due to a fortuitous event.
b. Yes. The debt becomes due
at once because the period's
benefit is given solely to the •
creditor thereby giving the
creditor the right to demand
performance even before the
due date.
c. Yes. The debt becomes due
at once because the object
of the mortgage was lost.
d. No. The obligation is one with
a definite period, thus the
creditor cannot demand
fulfillment of the obligation
before it is due.
5. A thing is lost when it, except:
a. deteriorates
b. No disappears in such a way
that its existence is unknown
or it cannot be recovered.
c. goes out of commerce
d. perishes
6. The following are the requisites of
the doctrine of constructive fulfillment
of suspensive condition, except:
a. The condition is suspensive.
b. The condition is resolutory.
c. The debtor acts voluntarily or
wilfully.
d. The debtor actually prevents
the fulfillment of the condition.
7. The following are other terms
interchangeably used with solidary
obligations, except:
a. Joint and several
b. In solidum
c. Several
d. Mancum
8. Every future event and uncertain
event upon which an obligation is
made to depend.
a. force majeure
b. period
c. penalty
d. condition
9. The condition involves the
performance of an act.
a. Negative condition
b. possible condition
c. Positive condition
 d. impossible condition
10. It is also known as condition
precedent.
a. Casual condition
b. Resolutory condition
c. Mixed condition
d. Suspensive condition
11. It refers to a joint obligation:
a. One in which each of the
debtors is liable only for
their proportionate part of
the debt and each of the
creditor is entitled only for
a proportionate part of the
credit.
b. One in which the obligation of
one is a resolutory condition
of the obligation of the other,
the non-fulfillment of which
entitles the other party to
rescind the contract.
c. One in which each debtor is
liable for the entire obligation,
and each creditor is entitled to
demand the whole obligation.
d. One in which either one of the
parties is indispensable and
the other is not necessary.
12. An obligation where each one of
the debtors is bound to render and/or
each of the creditors has a right to
demand entire compliance with the
prestation.
a. Facultative obligation
b. Solidary obligation
c. Alternative obligation
d. Joint obligation
13. The following are the terms
interchangeably used with joint
obligations, except:
a. Proportionate
b. Mancum
c. Juntos o separadamente
d. Jointly
14. It gives a right to enjoy the
property of another with the obligation
of preserving its form and substance,
unless the title constituting it or the
law otherwise provides.
a. usufruct
b. Antichresis
c. Lease
d. commodatum
15. The remedy of requiring exact
performance of a contract in the
specific form in which it was made, or
according to the precise terms agreed
upon.
a. Rescission
b. Specific performance
c. Fulfillment
d. Resolution
16. Means bringing the parties back to
their original status prior to the
inception of the contract.
a. mutual ratification
b. mutual rescission
c. mutual annulment
d. mutual restitution
17. The condition involves the
non-performance of an act.
a. Positive condition
b. Negative condition
c. impossible condition
d. possible condition
18. The condition is not susceptible of
partial realization.
a. divisible condition
b. indivisible condition
c. alternative condition
d. conjunctive condition
19. The following are other terms
interchangeably used with solidary
obligations, except:
a. Joint and several
b. several
c. Proportionate
d. Juntos o separadamente
20. May be defined as a tie or
vinculum among several debtors of
one and the same obligation.
a. Passive solidarity
b. Active solidarity
c. Mixed solidarity
d. None of the above.
21. The following are other terms
interchangeably used with joint
obligations, except:
a. In solidum
b. Proportionate
c. Mancomunada
d. Pro rata
22. If the obligation of the debtor is " I
will pay you my debt after I have
arrived from abroad", this
is
a. conditional
b. unenforceable
c. with a period
d. void
23. There are several conditions, one
of which must be realized.
a. divisible condition
b. alternative condition
c. conjunctive condition
d. indivisible condition
24. D obliged to give C a specific
watch, a 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 were lost through D's fault,
successively. What is the right of C?
a. C can only choose to have
the delivery of the bracelet or
the price of the ring which
was the last item that was lost
plus damages.
b. C cannot choose the price of
the watch or the price of the
ring because the said objects
have already been lost.
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.
d. C an only choose to have the
bracelet because anyway, D
can still perform his
obligation.
25. Obligations which take effect at
once, but terminate upon the arrival of
the day certain.
a. Ex die
 b. Resolutory condition
c. In diem
d. Suspensive period
26. The condition is not capable of
realization according to nature, law,
morals, good customs, public order or
public policy.
a. possible condition
b. negative condition
c. impossible condition
d. positive condition
27. Which of the following is not void
ab initio?
a. That which is undertaken in
fraud of creditors.
b. That whose object did not
exist at the time of the
transaction.
c. That whose object is outside
the commerce of men.
d. That which contemplates an
impossible service.
28. It has the effect of "unmaking a
contract, or its undoing from the
beginning, and not merely its
termination."
a. Void
b. Rescission
c. Specific performance
d. Annulment
29. D is obliged to give C a specific
ring. The parties agreed that D may
give a specific bracelet as a
substitute. Which of the following is
true?
a. If the ring is lost through the
debtor's fault after substitution, the
debtor shall pay damages.
b. If the ring is lost through a fortuitous
event after substitution, the obligation
is extinguished.
c. If the ring is lost through a
fortuitous event before
substitution, the obligation is
extinguished.
d. If the bracelet is lost through a
fortuitous event before substitution,
the obligation is extinguished.
30. May be defined as a tie or
vinculum among several creditors of
one and the same obligation.
a. Passive solidarity
b. Active Solidarity
c. Mixed solidarity
d. None of the above.
31. The condition shall be deemed
fulfilled when the obligor voluntarily
prevents its fulfillment.
a. Doctrine of constructive
fulfillment of suspensive
condition
b. Doctrine of express
performance
c. Doctrine of constructive
extinguishment of obligation
d. Doctrine of implied
performance
32. Are those which arise from the
same cause, wherein each party is a
debtor and a creditor of
the other, such that the performance
of one is conditioned upon the
simultaneous fulfillment of the other.
a. Personal obligation
b. Unilateral obligation
c. Real obligation
d. Reciprocal obligation
33. An obligation whose performance
of the prestation can be fulfilled in
parts.
a. indivisible obligation
b. obligation with a penal clause
c. divisible obligation
d. alternative obligation
34. The remedy of requiring exact
performance of a contract in the
specific form in which it was made, or
according to the precise terms agreed
upon.
a. Rescission
b. Reformation
c. Specific performance
d. Mutual restitution
35. Is an interval of time, which,
exerting an influence on an obligation
as a consequence of a juridical act,
either suspends its demandability or
produces its extinguishments.
a. Period
b. Demand
c. Condition
d. Delay
36. A person who has the right to the
benefits of another's property.
a. Antichretic creditor
b. Bailor
c. Lessor
d. Usufructuary
37. It is a classification of a condition
where the fulfillment of the condition
depends upon the will of one of the
contracting parties.
a. impossible condition
b. mixed condition
c. casual condition
d. potestative condition
38. The following are other terms
interchangeably used with solidary
obligations, except:
a. Joint and several
b. Individually and collectively
c. Conjoint
d. Juntos o separadamente
39. This is a promissory note:
"I promised to pay A, B, and C the
sum of P18,000." (sgd) D, E, and F.
a. F is obliged to pay P12,000.
b. F is obliged to pay P2,000.
c. F is obliged to pay P6,000.
d. F is obliged to pay P18,000.
40. The condition is susceptible of
partial realization.
a. conjunctive condition
b. divisible condition
c. Indivisible condition
d. alternative condition
Module 4
1. The following are requisites of
condonation, except
a. The parties must have
capacity.
b. The obligation must be
demandable.
 c. It must be accepted by the
creditor.
d. It must be gratuitous.
2. The debtor offers, and the creditor
accepts, a third person who consents
to the substitution and assumes the
obligation.
a. Delegacion
b. Expromision
c. Subrogation
d. None of the above
3. The rules on application of payment
are the following, except:
a. If the creditor did not apply
or if application is void, the
debt which is most onerous
to the creditor, among
those due, shall be deemed
to have been satisfied.
b. If the debts due are of the
same nature and burden, the
payment shall be applied to
all of them proportionately.
c. The right to designate the
debt to which the payment
shall be applied belongs
primarily to the creditor.
d. If the debtor does not apply
payment, the creditor may
designate which debt is paid
by specifying in the receipt.
4. Comprises everything
indispensable for sustenance,
dwelling, clothing, medical
attendance, education and
transportation, in keeping with the
financial capacity of the family.
a. guaranty
b. Surety
c. Deposit
d. support
5. The initiative for the change does
not come from and may even be
made without the knowledge of the
debtor, since it consists of a third
person's assumption of the obligation.
a. None of the above
b. Delegacion
c. Expromision
d. Subrogation
6. The designation of the debt to
which the payment must be applied
when the debtor has several
obligations of the same kind in favor
of the same creditor.
a. Dacion en pago
b. Cession in payment
c. application of payment
d. Tender of payment and
consignation
7. If one of the parties to a suit over
an obligation has a claim for damages
against the other, the former may set
it off by proving his right to said
damages and the amount thereof.
a. voluntary compensation
b. conventional compensation
c. Extrajudicial compensation
d. judicial compensation
8. The following are requisites of
payment by cession, except
a. The solvency of the debtor
is immaterial.
b. There must be two or more
creditors.
c. There must be an acceptance
of the cession by the
creditors.
d. The debtor must be partially
or relatively insolvent.
9. It is made either by changing the
object or the principal conditions.
a. Personal novation
b. Real novation
c. Mixed Novation
d. Subjective novation
10. Is the transfer of all the rights of
the creditor to a third person, who
substitutes him in all his rights.
a. Annulment
b. Subrogation
c. Substitution
d. Ratification
11. A, B, and C owed in solidum
P15,000 to X as evidenced by a
promissory note. The note prescribed
on June 15, 2018. On August 1, 2018,
A paid X.
a. Entitled to collect P5,000
each from B and C.
b. Not entitled to
reimbursement from his
co-debtors for the shares of
the latter.
c. Entitled to recover from X.
d. Answer not given.
12. Which of the following is not a
special form of payment?
a. Dacion in payment
b. Application of payment
c. Cession
d. Consignation
13. When an old obligation is
terminated by the creation of a new
one that takes the place of the former.
a. Partial novation
b. Modificatory novation
c. None of the above
d. Total novation
14. These are the rules on the place
of payment of the obligation, except:
a. Payment shall be made in the
place stipulated by the
parties.
b. If there is no stipulation and
the obligation is to deliver a
determinate thing, payment
shall be made wherever the
thing might be at the moment
the obligation was constituted.
c. In any other case the place
of payment shall be at the
municipal trial court where
the obligation was
perfected.
d. In any other case the place of
payment shall be the domicile
of the debtor.
15. For extraordinary inflation (or
deflation) to affect an obligation, the
following requisites must be proven,
except:
a. That there was an official
declaration of extraordinary
inflation or deflation from the
Bangko Sentral ng Pilipinas
(BSP).
b. That the parties expressly
agreed to consider the effects
 of the extraordinary inflation
or deflation.
c. That the obligation was not
contractual in nature.
d. That the obligation was
contractual in nature.
16. The following are the requisites in
order that an obligation to give a
determinate thing will be extinguished,
except:
a. The thing is lost before the
debtor has incurred in delay.
b. The thing is lost without the
fault of the debtor.
c. The obligation is to deliver
an indeterminate thing.
d. The obligation is to deliver a
determinate thing.
17. It is mere evidence of a debt and
must pass thru the process prescribed
by law before it develops into what is
properly called a debt.
a. payable
b. debt
c. claim
d. liability
18. Means not only the delivery of
money but also the performance, in
any other manner, of an obligation.
a. Condonation
b. Payment
c. Merger of rights
d. Compensation
19. Payment shall be made to the
following, except:
a. creditor's successor in interest
b. Creditor
c. any person
d. any person authorized to
received it
20. Is the extinguishment of an
obligation by the substitution or
change of the obligation by a
subsequent one which extinguishes or
modifies the first, either by changing
the object or principal conditions, or
by substituting another in place of the
debtor, or by subrogating a third
person in the rights of the creditor.
a. condonation
b. merger of rights
c. compensation
d. novation
21. When the amount is known or is
determinable by inspection of the
terms and conditions of the relevant
promissory notes and related
documentation.
a. debt is unliquidated
b. debt is due
c. debt is demandable
d. debt is liquidated
22. Means the creditor.
a. delegado
b. delegante
c. delegatario
d. None of the above
23. A special form of payment
whereby the debtor abandons all of
his property for the benefit of his
creditors in order that from the
proceeds thereof the latter may obtain
payment of their credits.
a. Payment by cession
b. Application of payment
c. Tender of payment and
consignation
d. Dation in payment
24. Novation by substituting the
person of the debtor or subrogating a
third person to the rights of the
creditor.
a. Subjective novation
b. Mixed Novation
c. Objective novation
d. Real novation
25. Novation is made either by
changing the object or the principal
conditions and by substituting the
person of the debtor or subrogating a
third person to the rights of the
creditor.
a. Subjective novation
b. Real novation
c. Objective novation
d. Mixed novation
26. The following debts cannot be
compensated, except:
a. contract arising from contract
of depositum
b. contract arising from
contract of mutuum
c. contract arising from contract
of commodatum
d. contract arising from contract
of support
27. The following are requisites of
application of payment, except:
a. The amount paid by the
debtor must not be sufficient
to cover the total amount of all
the debts.
b. All of the debts must be due.
c. There must be one or more
debts of the same kind.
d. There must be only one
debtor and only one creditor.
28. For dacion en pago to exist, the
following elements must concur:
a. Satisfaction of the money
obligation of the debtor.
b. The agreement must be in a
document, private or public.
c. Existence of a money
obligation.
d. The alienation to the creditor
of a property by the debtor
with the consent of the former.
29. Means the new debtor.
a. delegado
b. delegante
c. delegatario
d. None of the above
30. The sharp increase of money or
credit, or both, without a
corresponding increase in business
transaction.
a. deflation
b. extraordinary inflation
c. extraordinary deflation
d. inflation
31. The following shall produce the
effect of payment of debts:
a. Delivery of check
b. Tender of central bank notes
c. delivery of promissory notes
 d. Answer not given.
32. The following are requisites of
condonation, except
a. The condonation must not be
inofficious.
b. The parties must have
capacity.
c. The condonation must comply
with the forms of donation, if it
is an express condonation.
d. It must be onerous.
33. The transfer of rights, especially
contractual rights, from one party to
another.
a. contract of barter
b. assignment of rights
c. cession in payment
d. contract of sale
34. A debt shall not be understood to
have been paid unless the thing or
service in which the obligation
consists has been completely
delivered or rendered, as the case
may be.
a. Principle of integrity
b. Principle of honesty
c. Principle of delivery
d. Principle of loyalty
35. I. In compensation, there must be
at least two obligation.
II. In confusion, there is only one
obligation.
a. Only I is true.
b. Only II is true.
c. Both statements are true.
d. Both statements are false.
36. Is the act of depositing the thing
due with the court or judicial
authorities whenever the creditor
cannot accept or refuses to accept
payment, and it generally requires a
prior tender of payment.
a. dation in payment
b. payment by cession
c. tender of payment
d. consignation
37 . Payment made to a third person
shall also be valid insofar as it has
redounded to the benefit of the
creditor. Such benefit to the creditor
need not be proved in the following
cases, except:
a. Subrogation
b. Waiver
c. Ratification
d. Estoppel
38. . The following are special forms
of payment, except:
a. payment by cession
b. application of payment
c. Check encashment
d. dation in payment
39. A owes B Php1M. A proposed to
B that C will pay A's debt and that he
will be released from all liabilities to
him. B and C agreed to the proposal.
Later, when B tried to collect from C,
he found out that C was insolvent.
a. A is no longer liable to B
despite the insolvency of C
unless said insolvency was
of public knowledge or
known to him when he
delegated the debt.
b. A is no longer liable to B even
if he had knowledge of C's
insolvency provided it is not of
public knowledge.
c. A is still liable to B even if he
was the one who proposed to
B that C shall substitute him
as debtor.
d. A is no longer liable to B
because of the substitution of
C in his place if he had no
knowledge of the insolvency
despite it being of public
knowledge.
40. If the buyer failed to pay the down
payment on time. but then, the seller
accepted, without any objections, the
delayed payments of the buyer. The
legal effect is
a. The obligation of that buyer is
that he is liable for his
negligence.
b. The obligation of that buyer
is deemed fully complied
with.
c. The obligation of that buyer is
that he is liable for his delay.
d. The obligation of that buyer is
not extinguished.
41. It is when a property is alienated
to the creditor in satisfaction of a debt
in money.
a. Cession in payment
b. Barter
c. Option contract
d. Dacion in payment
42. Obligations may be modified by:
a. Changing their object or
principal conditions.
b. Substituting the person of the
debtor.
c. Subrogating a third person in
the rights of the creditor.
d. All of the above.
43. Are contracts, whereby the parties
undertake reciprocal obligations to
resolve their differences thus avoiding
litigation, or put an end to one already
commenced.
a. Memorandum of Agreement
b. Waiver
c. Compromise agreement
d. Mutual desistance
44. D owes C Php1M. G is the
guarantor. A stranger, X paid the debt
of D without the knowledge of the
latter. In this case:
a. If G pays X, the former can
demand reimbursement from
D.
b. D has no obligation to
reimburse X because he paid
without the consent of D.
c. X cannot compel G to pay
him.
d. If D fails to pay X, the latter
can compel G to pay him.
45. C requested X to sell a specific
car for P580,000. Y borrowed said car
from X for two days but instead of
returning the car as promised, Y told
X to buy the car from C for P500,000
and that Y would pay X after Y returns
from Davao. Subsequently, C
executed a deed of sale covering the
car in X's favor for P500,000 for which
X issued three checks in favor of C. X
thereafter executed a deed of sale in
favor of Y. When y returned from
Davao, he refused to pay X the
amount of P500,000 saying that said
amount would just be deducted from
the P566,000 obligation X had with Y.
X in her cross-examination
categorically admitted that she is
indebted to Y.
In his answer, Y contended that: 1) As
early as September 28, 2015, C has
already sold the car to X for
P500,000; 2) At the time X executed
the deed of sale in his favor on March
4, 2016, X was already in possession
of the deed of sale from C; 3) the
amount of P500,000 was fully paid by
way of dation in payment to partially
extinguish X's obligation with Y; 4) the
contract entered into was a true sale
of motor vehicle and the mode of
payment was that of dation in
payment agreed upon at the time of
sale.
a. There is no legal
compensation as both
monetary obligations had not
become due and
demandable.
b. By operation of law, the
P500,000 which Y owed X is
off-set against the P566,000
owed by X to Y, leaving a
balance of P66,000, which X
should pay with 12% per
annum.
c. There is no legal
compensation as one of the
obligations consists of
delivery of a car and not sum
of money.
d. Legal compensation has not
taken place because X and Y
are not personally both
creditor and debtor of each
other.
46. In tender and consignation, if after
consignation is made, the creditor
allows the debtor to withdraw the thing
deposited in court, which of the
following is incorrect?
a. The obligation is
extinguished QUIZ 5
b. None of the above.
c. Co-debtors, guarantors and 1. X offers to sell his house to Y for
securities are released from
P1M. Y requested if he would accept
the obligation unless they
P995,000. Which of the following is
consented.
d. The obligation remains to correct?
subsist. a. The correct is void because
there is no consent.
47. The following are the requisites of
b. Y's response is a counter
legal compensation, except:
offer because it is not
a. That they be liquidated and
demandable. absolute.
b. That both debts consists in a c. Y's response is a mere
sum of money, or if the things request, hence, the offer is
due are consumable, they be still effective.
of the same kind, and also of d. Y's response is a
the same quality if the latter
counter-offer because it is
has been stated.
c. That each one of the qualified.
obligors be bound
subsidiarily, and that he be
2. Those which lack individuality and
at the same time a principal
are not regulated by special
creditor of the other.
d. That the two debts be due. provisions of law.
a. Nominate
48. Compensation cannot take place, b. Unilateral
except
c. Innominate
a. When one debt arises from
the obligations of a bailee in d. Gratuitous
commodatum.
b. When one debt arises from
3. Those which give rise to reciprocal
a bank deposit.
obligations for both parties
c. When one debt arises from
the obligations of the a. Informal
depositary. b. Formal
d. When one debt arises c. Unilateral
because of a claim for support
d. Bilateral
due gratuitous title.
49. When the old obligation subsists 4. Those in which each of the parties
to the extent that it remains aspires to procure for himself a benefit
compatible with the amendatory
through the giving of an equivalent or
agreement.
a. None of the above compensation.
b. Modificatory novation a. Onerous
c. Extinctive novation b. Formal
d. Total novation
c. Unilateral
d. Gratuitous
50. Means the original debtor.
a. delegado
b. delegante
c. delegatario
d. None of the above
5. Those which require not only the
consent of the parties for their
perfection, but also the delivery of the
object by any one of the party to the
other,
a. Formal
b. Real
c. Consensual
d. Principal
6. Those where each of the parties
has to account the acquisition of an
equivalent of his prestation, but such
equivalent, although pecuniarily
appreciable, is not yet determined, at
the moment of the celebration of the
contract, since it depends upon the
happening of an uncertain event, thus
charging the parties with the risk of
loss or gain.
a. Unilateral
b. Commutative
c. Aleatory
d. Gratuitous
7. Is a contract whereby almost all of
its provisions are drafted by one party.
a. Nominate
b. Contract of adhesion
c. Auto-contract
d. Gratuitous
8. A contract is in the stage of
conception when?
a. There is meeting of the minds
b. Negotiations are in
progress
c. The parties come to an
agreement
d. The contract is perfect
9. Is a contract whereby the parties,
by making reciprocal concessions,
avoid litigation or put an end to one
already commenced.
a. Compromise agreement
b. Auto-contract
c. Contract of adhesion
15. D borrowed a sum of money from
d. Memorandum of agreement
C with a certain rate of interest. C now
wants to increase the rate of interest
10. Those which give rise to an without the consent of D. What
obligation for only one of the parties. principle in contracts prohibits C from
doing so?
a. Informal
b. Formal a. autonomy of contracts
c. Unilateral b. relativity of contracts
d. Bilateral c. mutuality of contracts
d. consensuality of contracts
11. Those which can exist only as a
consequence of, or in relation with, 16. The contracting parties may
another prior contract. establish such stipulations, clauses,
a. Principal terms and conditions as they may
b. Preparatory deem convenient, provided they are
c. Accessory not contrary to law, morals, good
d. Formal customs, public order or public policy.
a. Autonomy of contract
b. Relativity of contract
12. Begins from the prospective
c. Formality of contract
contracting parties manifest their
d. Consensuality of contract
interest in the contract and ends at the
moment of agreement of the parbes.
a. Preparation 17. Any third person who induces
b. Perfection another to violate his contract shall be
c. Consummation liable for damages to the other
contracting party
d. None of the above
a. Quasi interference
b. Delict interference
13. Those which have their own
c. Legal interference
individuality and are regulated by
d. Tort interference
special provisions of law.
a. Nominate
b. Unilateral 18. The elements of tort interference
are the following, except
c. Innominate
d. Gratuitous A. Existence of a valid contract
14. The contract must bind both B. The third person is in good
contracting parties; its validity or faith.
compliance cannot be left to the will of C. Knowledge on the part of the
one of them. third person of the existence
of a contract
a. Autonomy of contract
D. Interference of the third
b. Relativity of contract
person is without legal
c. Formality of contract
justification
d. Mutuality of contract
19. The requisites of a stipulation pour
autrui or a stipulation in favor of a third
person are the following, except:
A. There must be a stipulation in
favor of a third person.
B. The stipulation must be a part
of the contract
C. The contracting parties
must have clearly and
deliberately conferred a
favor upon a third person, a
mere incidental benefit or
interest,
D. The third person must have
communicated his
acceptance revocation. to the
obligor before its revocation.
20. The following are the rules in
innominate contract, except:
a. Stipulation of the parties.
b. The provisions of business
law on obligations and
contracts.
c. The rules governing the most
analogous nominate
contracts.
d. The customs of the place.
21. Those which are perfected by the
mere agreement of the parties.
a. Formal
b. Real
c. Consensual
d. Principal
22. Those which have for their object
the establishment of a condition in law
which is necessary as a preliminary
step towards the celebration of
another subsequent contract
a. Principal
b. Preparatory
c. Accessory
d. Formal
23. The exceptional cases to the 27. It is a meeting of minds between
principle of relativity of contracts are two persons whereby one binds
the following, except: himself, with respect to the other, to
a. If a contract should contain give something or to render some
some stipulation in favor of a service.
third person, he may demand a. Law
its fulfillment provided he b. Contract
communicated his c. Obligation
acceptance to the obligor d. Memorandum of Agreement
before its revocation.
b. In contracts creating
28. Is constituted from the moment a
personal nights.
person receives a thing belonging to
c. Creditors are protected in
another, with the obligation of safely
cases of contracts intended to
keeping it and returning the same.
defraud them.
a. Pledge
d. Any third person who induces
b. Deposit
another to violate his contract.
c. Formal contract
d. Commodatum
24. Those which can subsist
independently from other contracts
29. Contracts take effect only between
and whose purpose can be fulfilled by
the parties, their assigns and heirs,
themselves.
except in case where the rights and
a. Preparatory
obligations arising from the contract
b. Accessory
are not transmissible by their nature,
c. Formal
or by stipulation or by provision of law.
d. Principal
a. Autonomy of contract
b. Relativity of contract
25. The exceptions in relativity of c. Formality of contract
contracts are the following, except: d. Mutuality of contract
a. Contracts are not 30. Which of the following may not be
transmissible by their nature. the object of a contract of sale?
b. Contracts are not
a. Things having a potential
transmissible by stipulation
exister
c. Contracts are not
b. The sale of a vain hope or
transmissible by provision of
expectancy.
law.
c. Future goods.
d. None of the above.
d. Answer not given..
26. The following are the stages in the
MODULE 6:
life of a contract, except:
a. Preparation
1. This refers to a qualified
b. Perfection
acceptance.
c. Consummation
d. None of the above a. Consent
 b. Policitacion d. Option 12. Consent is manifested by the
c. Counter-offer meeting of the offer and the
d. Option acceptance upon the thing and the
7 The following are the so-called vices
cause which are to constitute the
of consent, except:
contract. Which of the following
2. Is a unilateral proposition made by A. Mistake
constitute an offer?
one party to another for the B. Fraud
celebration of a contract. a. An offer made thru an
C. Violence
agent.
a. acceptance D. Legal intimidation
b. Business advertisement of
b. perfection
things for sale.
c. consent
8. Which is not an exception in the c. Advertisement for bidders
d. offer
rule "lesion or inadequacy of cause d. Answer not given.
shall not invalidate a contract."
3. Are those which exist only when the a. In cases specified by law.
13. These contracts are existent, valid
parties expressly provide for them for b. When there has been fraud.
and binding although they can be
the purpose of limiting or modifying c. When there has been
annulled because of want of capacity
the normal effects of the contract. mistake.
or vitiated consent of one of the
a. Accidental elements d. When there has been
parties, but before annulment, they
b. inherent elements violence
are effective and obligatory between
c. Natural elements
parties.
d. Essential elements
9. It is the why of the contract or the a. Rescissible
essential reason which moves the b. Voidable
4. The following are the persons contracting parties to enter into the c. Unenforceable
incapacitated to give consent, except: contract. d. Void
A. Minors a. Instrument
B. Persons under lucid b. Consent
14. The requisites of intimidation are
interval c. Object
the following, except:
C. demented persons d. Cause
a. That the intimidation must be
D. deaf-mutes who do not know 10. When a person takes improper
the determining cause of the
how to write advantage of his power over the will of
contract.
5. A deception used by one party prior another, depriving the latter of a
b. That the threatened act be
to or simultaneous with the contract, reasonable freedom of choice.
just
in order to secure the consent of the a. Undue influence c. That the threat be real and
other. Needless to say, the deceit b. Fraud serious.
employed must be serious. c. Intimidation d. That it produces a reasonable
a. Fraud d. Violence and well-grounded fear from
b. Causal fraud the fact that the person from
c. Incidental fraud which it comes has the
11. When the contract lacks one of the
d. Malice necessary means or ability to
essential elements, the contract is
inflict the threatened injury.
a. voidable
6. An imperfect promise which is b. rescissible
merely an offer. c. void 15. One of the following are
a. Consent d. all of the above circumstances to be considered in
b. Policitacion case of undue influence:
c. Acceptance
 a. The confidential, family,
spiritual, and other relations
between the parties.
b. The fact that the person
alleged to have been unduly
influenced was suffering from
mental weakness.
c. The fact that the person
alleged to have been unduly
influenced was ignorant.
d. All of the above
16. When one of the contracting
parties is compelled by a reasonable
and well grounded fear of an imminent
and grave evil upon his person or
property, or upon the person or
property of his spouse, descendants
or ascendants, to give his consent.
A. Intimidation (correct answer,
your
B. Illegal threat
C. Violence
D. Undue influence
17. That which is not serious in
character and without which the other
party would have entered into the
contrary anyway.
A. Fraud
B. Causal fraud
C. Incidental fraud
D. Malice
18. These elements are those without
which there can be no contract.
a. Inherent elements
b. Essential elements
c. Natural elements
d. Accidental elements
19. Any property or right not in
existence or capable of determination
at the time fo the contract, that a
person may in the future acquire by
succession.
a. present inheritance
b. future inheritance
c. legitime
d. None of the above
20. There is a colorable contract but it
has no substance as the parties have
no intention to be bound by it.
a. Relative simulation
b. Absolute simulation
c. Real contract
d. Personal contract
21. A "misunderstanding of the
meaning or implication of something"
or "a wrong action or statement
proceeding from a faulty judgment.
a. Mistake
b. Fraud
c. Violence
d. Illegal intimidation
22. Are those which are derived from
the nature of the contract and
ordinarily accompany the same.
a. Inherent elements
b. Essential elements
c. Natural elements
d. Accidental elements
23. If the parties state a false cause in
the contract to conceal their real
agreement.
a. Relative simulation
b. Absolute simulation
c. Real contract
d. Personal contract
24. A brief period during which an
insane person regains sanity sufficient
to have the legal capacity to contract
and act on his or her own behalf.
a. Insanity
b. Dementia
c. Lucid interval
d. Incapacity
25. The following are the elements to
consider in determining the degree of
intimidation, except
a. Age of the person
b. The education of the person
c. Sex of the person
d. Condition of the person
26. Is a contract granting a privilege to
buy or sell at a determined price
within an agreed time.
a. Earnest contract
b. Option contract
c. Perfected contract
d. Aleatory contract
27. Is manifested by the meeting of
the offer and the acceptance upon the
thing and the cause which are to
constitute the contract.
A. Offer
B. Acceptance
C. Perfection
D. Consent (correct answer,
your
28. The characteristics of consent are
the following, except:
a. It should be intelligent
b. It should be free
c. It should be spontaneous
d. It should be honest
29. A person binds himself to render
some service or to do something in
representation or on behalf of another,
with the consent or authority of the
latter.
 a. contract of agency
b. contract of partnership
c. contract of pledge
d. contract of mortgage
30. X, a former government
employee, suffered from severe
paranoia and was confined in the
mental hospital in 2001. After his
release, he was placed under the
guardianship of his wife to enable him
to get his retirement pay. In 2004, he
became a mining prospector and sold
mining claims. In 2007, he sued to
annul the sale claiming that he was
not mentally capacitated at the time of
sale. The sale in question was:
a. Illegal
b. Valid
c. Voidable
d. Legal
31. There is no contract unless the
following requisites concur, except:
a. Consent
b. Object certain
c. Cause
d. Written agreement
32. X offered to sell his house to Y for
P100,000. Y asks him if he would
accept
P80,000. Which of the following is
correct?
a. Because of ambiguity, both
offers are terminated by
operation of law.
b. Y's response is a
counter-offer effectively
terminating the P100,000
offer and instigating an offer
of P80,000.
c. Y's response is a rejection of
the P100,000 offer, and there
is no offer for P80,000
because it is too definite to be
an offer.
d. Y's response is a mere
inquiry, the P100,000 offer
by X is still there.
33. The following are the requisites of
causal fraud, except:
a. It must have been employed
by one contracting party upon
the other.
b. It must have induced the
other party to enter into the
contract.
c. It must not be serious.
d. It must have resulted in
damage and injury to the
other party seeking
annulment.
34. Elements without which there
cannot be a contract.
a. essential elements
b. natural elements
c. accidental elements
d. all of the above
35. Is any means employed upon a
party which, under the circumstances,
he could not well resist and which
controlled his volition and induced him
to give his consent to the contract,
which otherwise he would not have
entered into.
a. Fraud
b. Undue influence (correct
answer, your
c. Intimidation
d. Violence