1st Midterm Departmental Examinations

Subject Code: LAW 20013

Course Subject: Law on Obligations and Contracts

1. Lucas was obliged to give Hendery a specific refrigerator on November 27,

2017. On the said date, Lucas failed to give and deliver a specific refrigerator

to Hendery. Since Hendery wanted the refrigerator, he extra-judicially demand

Lucas’ performance by summoning him to Barangay Hall to execute what they

had agreed upon. Through the barangay chairman, the two have settled their

disagreements by making them agree to a common understanding that the

refrigerator will be delivered on December 10, 2017 instead. But when

December 10 came, Lucas still failed to deliver the refrigerator to Hendery.

This kind of default is an example of

a) Solutio indebiti

b) Compensatio morae

c) Megotiorum gestio

d) Mora solvendi

2. Chen is obliged to deliver a specific television to Loey. Before the said date of

delivery, a massive earthquake strikes the city, causing the fall down of

buildings, including Chen’s building in which the specified television is being

prepared for packaging. It is no surprise that the earthquake occurs because it

was on the news forecast he has watched. Assuming there was no delay,

negligence, and imprudence on the part of the debtor and there’s an absence

of any stipulation, will Chen be liable for the damages?

a) Yes, because it is the debtor’s responsibility to keep the television in a safe

place until the delivery to the obligee.

b) No, because an earthquake is a fortuitous event, thus, no person should be

liable as a general rule.

c) Yes, because the debtor knows already that an earthquake will occur at any

time. He could’ve delivered the television earlier before the earthquake.

d) No, because the liable for the damages is the obligee, for he made the obligor

deliver the television during the time of natural calamity.

3. “When my means permit me to do so” indicates that an obligation is

a) Conditional

b) Period

c) Natural

d) Uncertain

4. Tiffany obliges herself to give her pregnant friend, Jessica, a car if she would

give birth on or before December 25, 2021. This is an example of what

condition?

a) Positive Suspensive Condition

b) Legally Impossible Condition

c) Negative Suspensive Condition

d) Physically Impossible Condition

5. Bianca, Divine, Hazel, Eirienne, and Bethany executed a promissory note

promising to pay their indebtedness to their common creditor within a

stipulated period without declaring that they are liable solidarily. Can one of

them be compelled to pay the entire obligation?

a) No, because the obligation is Solidary

b) Yes, because the obligation is Joint

c) No, because the obligation is Joint

d) Yes, because the obligation is Solidary

6. Carmela promised to give Helena a brand new car worth P2,000,000, provided

that Helena will pass the 2021 CPA Board Examinations. This is an example of

which type of obligation?

a) Conditional Obligation (Suspensive)

b) Conditional Obligation (Resolutory)

c) Obligation with a term or period (Suspensive)

d) Obligation with a term or period (Resolutory)

7. A, B, and C are obliged to give W, X, Y and Z P24,000. X may collect from A

how much?

a) P24,000

b) P12,000

c) P6,000

d) P8,000

8. Patrick and Kyle, joint debtors, are obliged to give Louise, Matthew, and

Camille, solidary creditors, P12,000. How much may Matthew collect from

Patrick and Kyle?

a) P6,000

b) P8,000

c) P4,000

d) P12,000

9. Cher borrowed from Blythe P10.000. It was agreed that Cher could comply with

her obligation by giving Blythe P10,000, or a color television set, or by painting

the house of Blythe. This is an example of which obligation?

a) Conditional Obligation

b) Alternative Obligation
c) Facultative Obligation

d) Divisible Obligation

10. Mae is obliged to give Anne this car or this ring or this cigarette cane. Nothing

is said in the contract as to who was given the right of choice. Suppose Anne

selects the car, is Mae bound by the choice made?

a) Yes, because Anne selected the car among the alternatives.

b) Yes, because in the absence of any stipulation, Anne is given the right to

choose the object she desires to receive.

c) No, because Mae is not responsible to Anne’s car ambition.

d) No, because in the absence of any stipulation, Mae is given the right to

choose the object she desires to give.

11. It is a juridical relation whereby a person may demand from another the

observance of the terminative conduct and in case of breach made demand

satisfaction from the assets of the latter.

a) Natural Obligation

b) Moral Obligation

c) Civil Obligation

d) Contracts

12. Which of the following can never be enforced in court?

a) Obligation based on positive law

b) Obligation based on rights

c) Obligation based on voluntariness

d) Obligation based on contracts

13. The following are requisites of an obligation, except:

a) Active subject, creditor or obligee

b) Passive subject, debtor or obligor

c) Demand for fulfillment of the obligation

d) Efficient cause

14. Which is not a way by which juridical tie established?

a) Statute

b) Bilateral Acts

c) Unilateral Acts

d) Acts of God

15. Jack has an obligation to pay P1,200 at the LTO for his overspeeding penalty

within 15 days under the LTO Regulations. What is the prestation in the

situation?

a) LTO Regulations

b) To pay P1,200

c) Overspeeding penalty

d) None of the above

16. Which of the following is a negative obligation?

a) Obligation of X to deliver the piano to the customer.

b) Obligation of Y to repair the car of A.

c) Obligation of D to not build a fence on X lot.

d) Obligation of Z to give P an iPhone.

17. Which of the following is a real obligation?

a) To do

b) To give

c) Not to do

d) Not to give
18. Which is the default on the part of the debtor?

a) Mora solvendi

b) Compensation morae

c) Mora accipiendi

d) Negotiorum gestio

19. “On your birthday, I promise to give you Kimmy, my cat.” What kind of object

is this?

a) Generic

b) Indeterminate

c) Limited Generic

d) Specific

20. The creditor is entitled to the fruits of the thing –

a) Before the obligation to make delivery arises.

b) From the time the obligation to make delivery arises.

c) After the delivery

d) The creditor has no right whether the thing is delivered or not

21. The following statements concerning payment by cession are true, except one.

Which is it?

a) The creditors become the owners of the properties of the debtor that were

ceded to them.

b) Payment by cession extinguishes the obligations only to the extent covered

by the proceeds of the sale of the debtor’s properties.

c) The debtor must be insolvent.

d) Cession affects all the properties of the debtor except that exempt from

execution.
22. D borrowed P50,000.00 from C. On due date, D did not have any money to pay

the debt so he proposed to C that the latter accept a ring to settle the debt. C

accepted the proposal and received the ring. Immediately after receiving the

ring, C sold it to B. D’s obligation to give P50,000.00 to C is extinguished by:

a) Dacion en pago

b) Payment by cession

c) Sale

d) Application of payment

23. Consignation alone without any tender of payment is sufficient in the

following cases, except:

a) When the creditor is absent or unknown or does not appear at the place of

payment.

b) When the creditor presents the title to the obligation for collection.

c) When without just cause, the creditor refuses to give a receipt.

d) When two or more persons claim the same right to collect.

24. M owes P P10,000.00. The obligation is evidenced by a promissory note.

Subsequently, P assigned the note to A, A to B, B to C, and C back to M. the

obligation of M is extinguished by:

a) Compensation

b) Confusion

c) Condonation

d) The obligation is not extinguished because there was no payment

25. In order that condonation may extinguish an obligation involving a movable

property whose value exceeds P5,000.00 –

a) It is sufficient that the condonation and the acceptance are in writing, even
a private one.

b) It is required that the condonation and the acceptance be in a public

instrument.

c) The delivery of the document evidencing the debt is sufficient since the

property is movable.

d) The condonation and the acceptance may be made orally.

26. Lia owes a sum of P100,000 to Giselle, Karina, Ningning, and Winter, who are

solidary creditors. Upon payment, Lia gave the full amount of P100,000 to

Karina. Did Lia do the right thing?

a) No, because she should not give the whole P100,000 to Karina.

b) Yes, because she can give the payment to anyone she wants.

c) No, because Lia could only give the full amount when all the creditors are

present.

d) Yes, because each one of the creditors has the right to demand from Lia, the

debtor, the fulfillment of the entire obligation.

27. In relation to question 26, since Karina received the full payment of P100,000

from Lia, what should she do in accordance with the law?

a) Keep the money for herself since she owns all of the payment.

b) Give back the P100,000 to Lia because she has to give the full payment in

the presence of all the creditors.

c) Pay the corresponding shares of her co-creditors in accordance with their

internal agreement.

d) Tell the other creditors that the payment was damaged by a fortuitous event.

28. “I promise to give you P5,000” — this obligation is an example of

a) Pure Obligation
b) Conditional Obligation

c) Suspensive Obligation

d) Resolutory Obligation

29. The following are the differences between an obligation with a term/period

and an obligation with condition except

a) Obligation with a period/term may or may not happen; obligation with

condition is sure to happen at an exact date or indefinite time but sure to

come.

b) Obligation with a period/term always refers to future; obligation with

condition can refer to past events unknown to the parties.

c) Obligation with a period/term is sure to happen at an exact date or indefinite

time but sure to come; obligation with condition may or may not happen.

d) Obligation with a period/term merely fixes the time for the

e) demandability or performance of obligation; obligation with condition may

cause the arising or cessation of the obligation.

30. Katy, Taylor, and Selena are joint debtors who owe P60,000 to Joe. How much

can Joe collect from Katy?

a) P100,000

b) P20,000

c) P60,000

d) P40,000

31. Statement I: A divisible obligation is one that the object of which, in its

delivery or performance, is capable of partial fulfillment.

Statement II: An indivisible obligation is one that the object of which, in its

delivery or performance, is capable of partial fulfillment.

a) Statement I is true; Statement II is false

b) Statement I is false; Statement II is true

c) Both statements are true

d) Both statements are false

32. "I will give you P1,000.00 a month until the end of the year.” What kind of

obligation with a term or period is this?

a) Suspensive period (ex die)

b) Resolutory period (in diem)

c) Suspensive period (in die)

d) Resolutory period (ex diem)

33. Which of these is an example of an obligation with a penal clause?

a) Domino has the obligation to convey to Caramel a house, and if he fails, to

pay Caramel P500,000.

b) Domino has the obligation to pay P500,000, if he fails to convey to Caramel

the house.

c) Domino has the obligation to convey the house to Caramel or pay her

P500,000.

d) Domino has the obligation to convey the house to Ron with the right to

substitute the same with the payment of P500,000.

34. Miyuki bound himself to pay Kaguya P70,000. Miyuki is giving only P5,000.

Kaguya refuses to accept the P5,000.

a) Payment must be given/tendered by the proper person.

b) Payment must be complete and regular.

c) Person to whom payment is made must have the capacity to receive it.

d) Payment must be tendered in the proper place.

35. Sisa has two compulsory heirs, Crispin and Basilio. Sisa has an estate
amounting to P500,000. Salvi is indebted to Sisa for the amount of P400,000.

In consideration of the condonation or remission of debts, Sisa is –

a) capable of “forgiving” the indebtedness of Salvi because she still has a

remaining P100,000 of her estate.

b) allowed to ask for an installment of payment from Salvi with no interest.

c) not allowed to condone the indebtedness of Salvi because this would impair

the legitime of her two compulsory heirs.

d) capable of asking a different prestation instead of the original obligation

from Salvi.

36. Which of the following is an active aspect of an obligation?

a) Right

b) Prestation

c) Debt

d) Juridical Tie

37. The duty not to recover what has been voluntarily paid although payment was

no longer required.

a) moral obligation

b) natural obligation

c) civil obligation

d) Spiritual obligation

38. In fear of vengeance from lawless elements besieging his barangay, A

abandoned his fishpond, fled to Manila and left for Europe. Seeking that the

fish in the fishpond were ready for harvest, 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 C. Upon the return of A to

the barangay, which statements below shows obligations of B to A as regards

the contract with C?

I. No obligations will happen because A left, and business is automatically

transferred under B’s management.

II. A will only give B small amount of share since most of the responsibilities

was made by B.

III. B has no rights of using all amount by his own, so B must render an

account of his operations and deliver to Y the price he received for the

sale of the harvested fish.

a) I

b) II

c) III

d) All of the above

39. It is a wrong committed without any pre-existing relations between the

parties.

a) Natural obligation

b) Quasi Contra

c) Quasi Delict

d) Crime

40. Which of the following is an obligation not to do?

a) obligation of seller in a contract sale

b) obligation of landowner in easement of way

c) obligation of painter in a contract of service

d) obligation of depositary in a contract of deposit

41. In which article of R.A 386, Book IV states that "if a person obliged to do

something fails to do it, the same shall be executed at his cost."

a) Article 1171
b) Article 1166

c) Article 1167

d) Article 1174

42. Anna took a cab to work, but the driver was driving recklessly at a high rate

of speed, resulting in an accident that injured Anna. According to which article

is the cab owner accountable for damages?

a) Article 1170

b) Article 1164

c) Article 1153

d) Article 1175

43. Which of the following is NOT a requisite for the application of the rule on

fortuitous events?

a) The cause of the event is independent of the will of the human will.

b) Debtor has participated in the aggravation of the injury to the creditor.

c) The event is unforeseeable or unavoidable.

d) The occurrence renders it absolutely impossible for the debtor to fulfill his

obligation in a normal manner.

44. John owns a 300,000-peso automobile and a 100,000-peso motorcycle. Jiko

owes him P50,000, as well. His payment to Jill for P800,000 was due on

October 5th. John was unable to meet his obligations to Jill on the due date.

The following are the remedies of Jill except

a) Jill may ask for the attachment of John's car and motorcycle as the payment

for his obligation.

b) Jill has the right to kill John for not being able to pay his obligation.

c) He may ask the court to order Jiko to not pay John so that payment may be

made to him (Jill).

d) Jill may bring an action for the collection of the amount of P800,000 with

the right to damages.

45. Fortuitous events where there is human intervention such as wars, fire,

robbery, invasion etc.

a) Ordinary Fortuitous

b) Extra-Ordinary Fortuitous

c) Acts of Man

d) Acts of God

46. Aljur, husband, and Kylie, wife, are legally separated. By order of the court

which decreed the legal separation, Aljur is obliged to give a monthly support

of P35,000.00 to Kylie payable within the first five days of the month. Kylie

owes Aljur P35,000.00 by way of a business loan. On the other hand, Aljur has

not yet given Kylie’s support of P35,000.00 for this month. Both debts are

already due. Which of the following statements is correct?

a) Both debts are extinguished by legal compensation because both are already

due.

b) Kylie may claim compensation but not Aljur.

c) Aljur may claim compensation but not Kylie.

d) Neither one may claim compensation because the debts are not of the same

kind.

47. Dizon owes Charles P10,000.00 with Gavin as guarantor. Charles, on the other

hand, owes Dizon, P8,000.00. Both debts are already due but Dizon is

insolvent. In this case –

a) Charles may collect from Gavin P10,000.00.

b) Charles may collect from Gavin P2,000.00 because a guarantor can set up

compensation as regards what the creditor owes the principal debtor.

c) Charles may collect nothing from Gavin because Dizon is insolvent.

d) Charles may collect P8,000 from Gavin.

48. Irvin borrowed P50,000.00 from Celine. Subsequently, Irvin proposed to

Celine that Mark would assume his (Irvin’s) debt. Celine accepted the proposal

of Irvin. This substitution of debtor is known as –

a) Expromision

b) Delegacion

c) Tradition

d) Dacion en pago

49. D obliged himself to give 5 grams of illegal drugs to C. Later, the parties agreed

that D would instead give to C 5 sacks of rice. Which of the following

statements is correct?

a) The novation is void because the original obligation is void. Hence, C cannot

demand the delivery of 5 sacks of rice from D.

b) The novation is valid because the new obligation is valid. Hence, C can

demand the delivery of 5 sacks of rice from D.

c) The original obligation although void is validated by the new obligation.

Hence, C can demand the delivery of 5 sacks of rice from D.

d) The new obligation is only voidable because D had not yet performed the

original obligation at the time of the novation. Accordingly, the new

obligation is binding and C may demand the delivery of 5 sacks of rice from

D until the new obligation is annulled by a proper action in court.

50. The distinction between merger and compensation is that in merger:

a) The two debts may be payable at different places.

b) Two persons are in their own right debtors and creditors of each other.

c) The debtor and creditor may agree on the set-off of debts that are not yet
due.

d) The debtor and the creditor refer to only one person.

51. Katy, Taylor, and Selena are solidary debtors who owe P100,000 to Joe. How

much can Joe collect from Selena to extinguish the obligation?

a) P100,000

b) P20,000

c) P60,000

d) P40,000

52. An obligation with a penal clause may be defined as one to which an accessory

undertaking is attached for the purpose of insuring its performance by virtue

of which the obligor is bound to pay a stipulated indemnity or perform a

stipulated prestation in case of breach. The following are the purposes of

obligation with a penal clause except

a) To insure the performance of the obligation.

b) To liquidate the amount of damages to be awarded to the injured party in

case of breach of the principal obligation.

c) To punish the obligor in case of breach of the principal obligation (in certain

exceptional cases).

d) To mistreat the debtors who will not abide the law on obligations.

53. In facultative obligations, if a substitution has been made and the substitute

is lost due to the debtor’s fault, which of the following is true?

a) The debtor is liable for damages

b) The obligation is extinguished

c) The debtor must give another object which is equally satisfactory

d) The original prestation must be given

54. Which of the following is/are considered Indivisible Obligations?

I. Obligation to give definite things.

II. Obligation in the accomplishment of work measured in units.

III. Obligations which are not susceptible of partial performance.

a) I, II and III

b) I and II only

c) I and III only

d) II and III only

55. Ray owes Norman P1,000,000. Emma is the guarantor. A stranger, Gilda, paid

Norman the PI,000,000 with the consent of Ray and Emma. Gilda is now

subrogated in the place of Norman. If Ray cannot pay the P1,000,000, Gilda

can proceed against the guarantor, Emma. This is an example of:

a) Subrogation

b) Delegacion

c) Expromision

d) Cession

56. The following are true about the loss of a thing due, except:

a) Obligation is extinguished if the lost thing is a specific thing.

b) Loss of a thing due happens when the object perishes.

c) Obligation is extinguished if the lost thing is a generic thing.

d) Obligation is extinguished if the lost thing is a delimited generic thing.

57. Jolli owes Dona P500,000. Tucky is the guarantor of Jolli. Dona owes Jolli

P100,000. When Dona sues Jolli and she cannot pay, for how much will Tucky

be liable?

a) P500,000
b) P600,000

c) P100,000

d) P400,000

58. Spiderman makes a check payable to the bearer, and hands the check to

Superman, who hands it to Batman who finally hands it to Spiderman. What

happens to the obligation of Spiderman?

a) The obligation of Spiderman is extinguished.

b) The obligation of Spiderman is transferred to Superman.

c) The obligation of Spiderman is transferred to Batman.

d) The obligation of Spiderman is divided between Superman and Batman.

59. The obligation of the employer to pay death benefits and funeral expenses for

his employees’ death while in the course of employment a sanction by the

Workmen’s Compensation Act is one that arises from.

a) Law

b) Contracts

c) Quasi-contracts

d) None of the above

60. When X voluntarily takes charge of the neglected business of Y without the

latter’s authority where reimbursement must be made for necessary and useful

expenses, there is?

a) Quasi-delict

b) Contract

c) Negotiorum gestio

d) Solution indebiti

61. All the following except one are civil liabilities arising from crime:
a) Restitution

b) Reparation of the damage caused

c) Indemnification of consequential damage

d) Imprisonment

62. Which of the following statements are true about Contracts and Quasi

contracts?

I. Contracts have the force of law it means they are over and above the law.

II. Quasi-contract has no consent for validity as the same is implied by the

law.

III.Contract is a natural obligation while quasi-contract is a civil obligation.

a) I

b) II

c) III

d) All of the above

63. In which article of R.A 386, Book IV states that "The obligation to give a

determinate thing includes that of delivering the accessions and accessories,

even though they may not have been mentioned."

a) Article 1165

b) Article 1164

c) Article 1166

d) Article 1167

64. Which of the following are true?

I. The debtor remains liable for acts of God if he is guilty of fraud, delay,

negligence or contravention of tenor.

II. Any waiver of an action for future fraud is void.

III. Personal right is enforceable against the world.

IV. Mora solvendi does not apply to negative obligations.

V. In case the remedy mentioned in the next preceding number is not

available, collection of damages is also not available.

a) I, II, III

b) II, IV, V

c) I, II, IV

d) II, III, V

65. Statement A: An indeterminate thing cannot be the object of destruction by a

fortuitous event.

Statement B: Delay is impossible for obligation not to do.

a) Statement A is true; Statement B is false

b) Statement A is false; Statement B is true

c) Both statement A and B is true

d) Both statement A and B is false

66. Statement A: The receipt of the principal by the creditor, without reservation

with respect to the interest, shall give rise to the presumption that the said

interest has been paid.

Statement B: The receipt of a later installment of a dept without reservation

as to prior installments, shall raise the presumption that such installments

have not been paid.

a) Statement A is true; Statement B is false

b) Statement A is false; Statement B is true

c) Both statement A and B is true

d) Both statement A and B is false

67. D is indebted to C for 20,000.00 which is due on June 10. C owes D 15,000.00

which is due on June 5. On June 8, C assigned his credit rights to T. D gave

his consent to the assignment but did not reserve his right to the

compensation. On June 10, how much may T collect from D?

a) P20,000.00

b) P15,000.00

c) P5,000.00

d) Nothing

68. JJ borrowed 15,000.00 from BB. On due date, JJ was not able to pay but she

promised to give BB a specific ring, a specific bracelet, or a specific necklace,

in payment of the debt. BB accepted the offer of JJ. How was the obligation of

JJ to pay 15,000.00 extinguished?

a) By compensation

b) By novation

c) By confusion

d) By condonation

69. Luke is a lessee of Oberon’s building. Under the lease contract, Luke must pay

the monthly rental of 10,000.00 to Oberon at Oberon’s office. On the sixth

month of the lease, Luke went to Oberon’s office to pay the rental but he was

told by Elcano, an employee of Oberon, that Oberon was confined at the

hospital. Elcano told Luke that he could entrust the payment to him. Santiago,

a son of Oberon, who happened to be around, however, demanded that Luke

must pay to him claiming that as Oberon’s son, he was the one authorized to

receive the payment. Given the situation, which of the following modes of

payment the Luke should avail himself?

a) Tender of payment

b) Payment by cession

c) Consignation

d) Application of payment
70. The delivery to the creditor of mercantile documents such as checks shall

produce the effect of payment:

a) Upon the delivery.

b) When they have been cashed.

c) When they are signed by the drawer.

d) When they are deposited in the bank.

Summary of Answers

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.
D

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

B
25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

35.

36.

37.

38.

B
39.

40.

41.

42.

43.

44.

45.

46.

47.

48.

49.

50.

51.

52.

D
53.

54.

55.

56.

57.

58.

59.

60.

61.

62.

63.

64.

65.

66.

67.
A

68.

69.

70.

Summary of Answers – Explained

1. (D) Article 1169, Civil Code of the Philippines. Those obliged to deliver or to do

something incur in delay from the time the obligee judicially or extrajudicially

demands from them the fulfillment of their obligation. Mora solvendi is a kind of

default defined as a delay on the part of the debtor in the fulfillment of his obligation.

Since Lucas was the one obliged to fulfill an obligation, which is the delivery of the

refrigerator, and he hasn’t fulfilled it, it is a delay on the part of the debtor, thus, an

example of mora solvendi.

2. (B) Article 1174, Civil Code of the Philippines. Except in cases expressly specified

by the law, or when it is otherwise declared by stipulation, or when the nature of the

obligation requires the assumption of risk, no person shall be responsible for those

events which could not be foreseen, or which, though foreseen, were inevitable. An

earthquake is a fortuitous event because it is independent of the human will,

unforeseen, and unavoidable. In the question, it was stated there was no stipulation,

no negligence, no delay, and no imprudence on the part of the debtor. He had seen

a forecast about an earthquake—it is foreseeable, but it is inevitable. As a general

rule, no one is responsible for the event.

3. (A) Article 1180, Civil Code of the Philippines. When the debtor binds himself to
pay when his means permit him to do so, the obligation shall be deemed to be one

with a period, subject to the provisions of Article 1197. Period is a future and certain

event upon the arrival of which, the obligation subject to it either arises or is

extinguished.

4. (A) Article 1181, Civil Code of the Philippines. In conditional obligations, the

acquisition of rights, as well as the extinguishment or loss of those already acquired,

shall depend upon the happening of the event which constitutes the condition.

5. (C) Article 1181, Civil Code of the Philippines. The concurrence of two or more

creditors or of two or more debtors in one and the same obligation does not imply

that each one of the former has a right to demand, or that each one of the latter is

bound to render, entire compliance with the prestation. There is a solidary liability

only when the obligation expressly so states, or when the law or the nature of the

obligation requires solidarity.

6. (A) Articles 1179-1190, Civil Code of the Philippines. A suspensive condition is a

condition in which the fulfillment of something will give rise to an obligation. The

demandability of the obligation is suspended until the happening of a future and

uncertain event which constitutes the condition. In the given situation, the obligation

of Carmela to Helena will only take place if the condition is fulfilled (if Helena will

pass the 2021 CPA Board Examinations).

7. (C) Articles 1207-1222, Civil Code of the Philippines. When problems like this

are silent about the kind of obligation they exhibit, they are considered to be joint

obligations. It is where the whole obligation is to be paid or fulfilled proportionately

by the joint debtors. In the problem, A, B, and C are joint debtors to their joint

creditors W, X, Y, and Z. The total amount of obligation is P24,000, where each of

the debtors are obliged to pay P8,000. However, the problem asked for the amount
that creditor X may demand from debtor A. Hence, creditor X may only collect his

part, P6,000, from debtor A.

8. (D) Articles 1212-1214, Civil Code of the Philippines. When the creditors are

solidary, each of them has the right to demand the entire amount of the obligation

from the debtors, provided that the fellow creditors have given their consent for the

matter. As stated in Article 1213 of the Civil Code, “a solidary creditor cannot assign

his rights without the consent of the others”. In the problem, since Louise, Matthew,

and Camille are solidary creditors, Matthew has the right to collect the full amount

of P12,000 from the joint debtors Patrick and Kyle.

9. (B) Articles 1199-1206, Civil Code of the Philippines. An alternative obligation is

an obligation wherein a person alternatively bound by different prestation shall

completely perform one of them (Art. 1199). In the problem, Cher, the debtor, is

obliged to perform one of the alternative prestation to pay for her P10,000 debt.

10.(D) Article 1200, Civil Code of the Philippines. “The right of choice belongs to the

debtor, unless it has been expressly granted to the creditor”. In the problem, the

right of choice among the alternatives was not expressed in the stipulation, thus

giving the right to Mae as the debtor.

11.(C) Article 1156, Civil Code of the Philippines. Only civil obligations are

enforceable in court when breached. It does not cover natural obligations because

these are obligations that cannot be enforced in court being based merely on equity

and natural law.

12.(C) Constitution of the Philippines. A natural obligation is an obligation that has

no legal basis and hence does not give a right of action to enforce its performance. It

is based on equity, morality, and natural law, and should be voluntary.

13.(C) Article 1156, Civil Code of the Philippines. Every obligation has four essential

elements: an active subject; a passive subject; the prestation; and the legal

tie/efficient cause.

14.(D) Article 1156, Civil Code of the Philippines. One of the elements of an obligation

is Juridical tie/Vinculum Juris on which its relation between obligor and obligee are

established through law(statute), bilateral acts and unilateral acts.

15.(B) Article 1156, Civil Code of the Philippines. One element of obligation is

prestation which means an object or subject matter of the obligation that consists of

giving doing or not doing something. In this case, the prestation is to give or pay the

overspeeding penalty of P1,200.

16.(C) Article 1168, Civil Code of the Philippines. Negative personal obligation is an

obligation not to do wherein the duty of the obligor is to abstain from an act.

17.(B) Article 1165, Civil Code of the Philippines. Real Obligation is an obligation to

give in which the obligor must deliver a thing to the obligee.

18.(A) Article 1169, Civil Code of the Philippines. Mora solvendi pertains to the delay

on the part of the debtor to fulfill his obligation

19.(D) Article 1163, Civil Code of the Philippines. A thing is said to be specific or

determinate particularly designated or physically segregated others of the same

class.

20.(B) Article 1164, Civil Code of the Philippines. The creditor has a right to the
fruits of the thing only from the time the obligation to deliver it arises. However, he

shall acquire no real right over it until the same has been delivered to him.

21.(A) Article 1255, Civil Code of the Philippines. The creditors do not become the

owners of the properties of the debtor but rather the ceded or assigned properties of

the debtor gives the creditors the right to sell the same and apply the proceeds

thereof to the satisfaction of their credits.

22.(A) Article 1245, Civil Code of the Philippines. D’s obligation to give 50,000.00 to

C is extinguished by a special form of payment called dacion en pago or dation in

payment where the ownership of his property to the ring is alienated or transferred

to C in satisfaction of his debt in money.

23.(B) Article 1256, Civil Code of the Philippines. Consignation alone without any

tender of payment is sufficient only (a) when the creditor is absent or unknown, or

does not appear at the place of payment, (b) when he is incapacitated to receive

payment, (c) when, without just cause, he refuses to give a receipt, (d) when two or

more persons claim the payment, and (e) when the title of the obligation has been

lost.

24.(B) Article 1275, Civil Code of the Philippines. The obligation of M is extinguished

by confusion or merger in the same person the characters of creditor and debtor with

respect to the same obligation.

25.(A) Article 748, Civil Code of the Philippines. When the remissions involve a

movable/personal property whose value exceeds P5,000.00, the remission and

acceptance may be in any form, i.e., oral or in writing (public or private). The

remission, however, if made orally, requires the simultaneous delivery of the thing

or the document representing the right remitted.

26.(D) Article 1214, Civil Code of the Philippines. The debtor may pay any one of the

solidary creditors; but if any demand, judicial or extrajudicial, has been made by one

of them, payment should be made to him. It was indicated that the creditors are

solidary—this means that each one of the creditors has the right to demand from

any of the debtors, the fulfillment of the entire obligation; this is an Active Solidarity,

a solidarity on the part of the Creditors. Since they are solidary, the debtor may pay

any one of the creditors.

27.(C) Article 1207, Civil Code of the Philippines. The concurrence of two or more

creditors or of two or more debtors in one and the same obligation does not imply

that each one of the former has a right to demand, or that each one of the latter is

bound to render, entire compliance with the prestation. There is a solidary liability

only when the obligation expressly so states, or when the law or the nature of the

obligation requires solidarity. Active solidarity means a full payment to any of the

creditors extinguishes the obligation. The creditor who received the entire amount

will be liable to pay the corresponding shares of his co-creditors in accordance with

their internal agreement.

28.(A) Article 1179, Civil Code of the Philippines. Every obligation whose

performance does not depend upon a future or uncertain event, or upon a past event

unknown to the parties, is demandable at once. Every obligation which contains a

resolutory condition shall also be demandable, without prejudice to the effects of the

happening of the event.

29.(A) Section 1 and Section 2 of Chapter 3: Different Kinds of Obligations in

Obligations and Contracts part of the Civil Code of the Philippines. Letter B

states the difference of obligation with a term/period and obligation with condition

in terms of time. Letter C states the difference of obligation with a term/period and
obligation with condition in terms of fulfillment. Letter D states the difference of

obligation with a term/period and obligation with condition in terms of influence.

The wrong answer is Letter A, for it states the exact opposite of the difference between

obligation with a term/period and obligation with condition in terms of fulfillment

(the opposite of Letter C).

30.(B) Article 1207 Civil Code of the Philippines. The concurrence of two or more

creditors or of two or more debtors in one and the same obligation does not imply

that each one of the formers has a right to demand, or that each one of the latter is

bound to render, entire compliance with the prestation. There is a solidary liability

only when the obligation expressly so states, or when the law or the nature of the

obligation requires solidarity. Since there were no internal agreements indicated for

their proportion, the amount owed will be divided equally.

31.(A) Articles 1223-1225, Civil Code of the Philippines. It is true that a divisible

obligation is capable of partial fulfillment. However, an indivisible obligation is not

capable of partial fulfillment. “For the purposes of the preceding articles, obligations

to give definite things and those which are not susceptible of partial performance

shall be deemed to be indivisible.” Example of this is an agreement that the debtor

will pay the creditor on a certain date the full amount of money, despite the money

being physically divisible, because the intention of the parties is that the obligation

must be fulfilled at one time and as a whole (not partially).

32.(B) Articles 1193, Civil Code of the Philippines. The resolutory period (in diem) is

an obligation with a term or period in which the obligation is valid up to a day certain

and terminates upon the arrival of the period. In the given, the word “until” serves

as an indicator of a period that is expected to come and will terminate the obligation.

33.(A) Article 1226, Civil Code of the Philippines. As stated, “in obligations with a
penal clause, the penalty shall substitute the indemnity for damages and the

payment of interests in case of noncompliance, if there is no stipulation to the

contrary”. The example in letter A is an obligation with a penal clause which is the

P500,000 penalty in case of Domino’s failure to comply. The other examples are

conditional obligation, alternative obligation, and facultative obligation respectively.

34.(B) Articles 1233-1235, Civil Code of the Philippines. “A debt shall not be

understood to have been paid unless the thing or service in which the obligation

consists of has been completely delivered or rendered, as the case may be”. In other

words, the very thing or service contemplated must be paid and fulfillment must be

complete. But the succeeding articles provide the exceptions to this rule. However,

in the given, Kaguya refuses to accept the partial payment of Miyuki, showing that

the two parties did not have any stipulation for an exception to take place.

35.(C) Articles 1270-1274, Civil Code of the Philippines. One of the requisites of a

valid condonation is that it must not amount to inofficious donation, or one that

exceeds what a person can give by way of a will. This simply means that a donation

cannot impair the legitime or the rightful share of a compulsory heir in the

inheritance. In the given situation, Sisa has two compulsory heirs, and their rightful

share would be affected by a condonation of Salvi’s debt. Thus, a condonation is not

allowed.

36.(A) Article 1156, Civil Code of the Philippines. Right and obligation, correlated –

When there is right there is a corresponding obligation. Right is the active aspect

(credit) and obligation is the passive aspect (debt).

37.(B) Article 1424, Civil Code of the Philippines. A natural/voluntary action in

performance of the contract cannot recover what he has delivered or the value of the

service he has rendered.

38.(B) Article 2145, Civil Code of the Philippines. The officious manager shall

perform his duties with all the diligence of a good father of a family and pay the

damages which through his fault or negligence may be suffered by the owner of the

property or business under management.

39.(C) Article 2176, Civil Code of the Philippines. Quasi-delicts are acts or emissions

that cause damage to another due to negligence without, but any pre-existing

contractual relation between the parties.

40.(B) Article 649, Civil Code of the Philippines. Easement of Right of Way stating

that “The owner, or any person who, by virtue of a real right may cultivate or use

any immovable, which is surrounded by other immovables pertaining to other

persons and without adequate outlet to a public highway, is entitled to demand a

right of way through the neighboring estates, after payment of the property

indemnity.”

41.(C) Article 1167, Civil Code of the Philippines. If a person obliged to do something

fails to do it, the same shall be executed at his cost. The same rule shall be observed

if he does it in contravention of the tenor of the obligation. Furthermore, it may be

decreed that what has been poorly done be undone.

42.(A) Article 1170, Civil Code of the Philippines. Those who in the performance of

their obligations are guilty of fraud, negligence, or delay and those who in any

manner contravene the tenor thereof, are liable for damages. In the situation, the

driver is guilty of negligence therefore he is liable for damages.

43.(B) Article 1174, Civil Code of the Philippines. The requisites of a fortuitous events

are the following:

a. The cause of the event is independent of the will of the human will or at least
of the debtor’s will;

b. The event could not be foreseen or if foreseen, is inevitable.

c. The event must be such of a character as to render it impossible for the debtor

to comply with his obligation in a normal manner.

d. The debtor must be free from any participation in, or the aggravation of, the

injury to the creditor, that is, there is no concurrent negligence on his part.

44.(B) Article 1177, Civil Code of the Philippines. The creditors, after having pursued

the property in possession of the debtor to satisfy their claims, may exercise all the

rights and bring all the actions of the latter for the same purpose, save those which

are inherent in his person; they may also impugn the acts which the debtor may

have done to defraud them. The law does not mean that the creditor can use force

or violence upon the debtor. The creditor must bring the matter to the court and the

court will be the one to order the delivery.

45.(C) Article 1174, Civil Code of the Philippines. Acts of Man is a fortuitous event

independent of the will of the obligor but not of other human wills.

46.(B) Article 1287, Civil Code of the Philippines. Since one of the debts arises from

a claim for support by gratuitous title, only Kylie can claim compensation because,

as the party entitled to receive support, only she has the sole right to claim

compensation or oppose Aljur from claiming compensation.

47.(B) Article 1280, Civil Code of the Philippines. Exception to the general rule that

only the principal debtor can set up against his creditor, the guarantor may set up

compensation as regards what the creditor may owe the principal debtor. Since

Dizon has a debt of P10,000.00 to Charles, and Charles owes Dizon P8,000.00 there

is a partial compensation that Gavin may set up. Thus, leaving Gavin only liable for

the remaining P2,000.00 which C can collect from him.

48.(B) Article 1295, Civil Code of the Philippines. Delegacion or that which takes

place when the creditor accepts a third person to take place of the debtor at the

instance of the latter. In this substitution, all the parties, the old debtor, the new

debtor, and the creditor must agree.

49.(A) Article 1298, Civil Code of the Philippines. The original obligation to give 5

grams of illegal drugs is void because it is with contrary to law which in effect also

voids the novation to give 5 sacks of rice for the reason that there is nothing to novate

in the first place. Thus, C cannot demand for the delivery of 5 sacks of rice from D.

50.(D) Article 1275, Civil Code of the Philippines. Merger happens when the

characters of creditor and debtor are merged in the same person. In other words, the

debtor is his own creditor hence referring only to one person.

51.(A) Article 1207 Civil Code of the Philippines. There is a solidary liability only

when the obligation expressly so states, or when the law or the nature of the

obligation requires solidarity. The question stated that the 3 are solidarity debtors,

which means each one of the debtors is obliged to pay the entire obligation; this is a

Passive Solidarity, solidarity on the part of the debtors.

52.(D) Section 6 of Chapter 3: Different Kinds of Obligations in Obligations and

Contracts part of the Civil Code of the Philippines. All Letters A, B, and C

indicate the purpose of an obligation with a penal cause, except for Letter D—it’s

because the law on obligations does not tell the obligors who haven’t fulfilled

obligations should be mistreated. The actual purpose of the law is to ensure the fair

treatment for all, may it be for debtor or creditor. Letter A - Funcion coercitiva o de

garantia; Letter B - Funcion liquidatoria; Letter C - Funcion estrictamente penal.

53.(A) Article 1170 Civil Code of the Philippines. Those who in the performance of
their obligations are guilty of fraud, negligence, or delay, and those who in any

manner contravene the tenor thereof, are liable for damages

54.(C) Section 5 of Chapter 3: Different Kinds of Obligations in Obligations and

Contracts part of the Civil Code of the Philippines. Indivisible obligations:

obligation to give definite things, obligations which are not susceptible of partial

performance, the law so provides, or when the parties intended it to be indivisible.

Divisible obligations: when the object of the obligation is the execution of a certain

number of days of work, when the object of the obligation is the accomplishment of

work measured in units, when the object of the obligation is susceptible of partial

compliance, or when the object of the obligation is such that the debtor is required

to pay in installments

55.(A) Article 1303, Civil Code of the Philippines. Subrogation is an extinct subjective

novation by change of the creditor. It is the transfer to a third person of all the rights

appertaining the creditor, including the right to proceed against guarantors, or

possessors of mortgages, subject to any legal provision or any modification that may

be agreed upon. In the situation, the original creditor, Norman, is replaced by Gilda

by paying the obligation of Ray. The rights of a creditor are then transferred to Gilda.

56.(C) Article 1263, Civil Code of the Philippines. “In an obligation to deliver a generic

thing, the loss or destruction of anything of the same kind does not extinguish the

obligation”. Two of the given choices are about the loss of a generic thing. The only

difference is that the situation in letter D pertains to a delimited generic thing, or the

thing that has boundaries or limits, making it similar to a specific thing.

57.(D) Article 1278-1290, Civil Code of the Philippines. “Notwithstanding the

provisions of the preceding article, the guarantor may set up compensation as

regards what the creditor may owe the principal debtor”. In the problem, Tucky will
be liable for only P400,000, because he can set up the P100,000 credit of Jolli as the

basis for partial compensation.

58.(A) Article 1275, Civil Code of the Philippines. This is a clear case of merger. Since

Spiderman’s issued check is payable to the bearer, the value of the check remains

the same despite the number of hands it went through. So, when the check came

back to Spiderman, he seemed to owe himself the amount which originally came

from him. Because the characters of creditor and debtor are merged in the same

person, the obligation is extinguished.

59.(A)Workers Compensation Act 1987 provides compensation for the defendant/s or

estate of a worker who dies as a result of a workplace injury or illness which

includes reasonable burial expenses. This act is one of the special laws of civil code

which means demandable under Article 1158.

60.(C) Article 2150, Civil Code of the Philippines. Negotiorum Gestio refers to the

voluntary administration of the property business or affairs of another without his

consent or authority.

61.(D) Article 104, The Revised Penal Code of the Philippines. Civil liability arising

from crime includes restitution, reparation of damage caused, indemnification for

consequential damages.

62.(B) (I) Article 1306, Civil Code of the Philippines. Contracts have the force of law,

it does not mean that contract are over and above the law, contracts are with the

limitations imposed by law. (II) Article 1160, Civil Code of the Philippines. People

who are involved in a quasi-contract do not create the agreement themselves. Since

it is imposed by the court, the individuals do not need to agree to the contract for it

to be legally enforceable. (III) Contract is a civil obligation while quasi-contract is a

natural obligation.

63.(C) Article 1166, Civil Code of the Philippines. The obligation to give a determinate

thing includes that of delivering the accessions and accessories, even though they

may not have been mentioned.

64.(C)

I. Article 1174, Civil Code of the Philippines. A person is not responsible for

loss or damage caused to another resulting from the non-performance of his

obligation due to a fortuitous event except the debtor is guilty of fraud,

negligence, or delay, or contravention of the tenor of the obligation.

II. Article 1171, Civil Code of the Philippines. Responsibility arising from fraud

is demandable in all obligations. Any waiver of an action for future fraud is void.

III. Personal right is the right or power of a creditor to demand from debtor, as a

definite passive subject, the fulfillment of the latter’ obligation to give, to do, or

not to do. On the other hand, Real right is the right or interest of a person over

a specific thing, without a definite passive subject, against whom the right may

be personally enforced.

IV. Article 1168 and 1169, Civil Code of the Philippines. Delay is impossible for

the debtor fulfills by not doing what has been forbidden him.

V. Article 1165, Civil Code of the Philippines. The creditor may bring an action

for damages only even if this is not expressly mentioned by Article 1165.

65.(C)

Statement A: Article 1174, Civil Code of the Philippines. An indeterminate thing

cannot be the object of destruction by a fortuitous event because genus nunquam

perit (genus never perishes).

Statement B: Article 1168 and 1169, Civil Code of the Philippines. Delay is

impossible for the debtor fulfills by not doing what has been forbidden him.
66. (A) Article 1176, Civil Code of the Philippines. The receipt of the principal by the

creditor, without reservation with respect to the interest, shall give rise to the

presumption that the said interest has been paid. The receipt of a later installment

of a dept without reservation as to prior installments, shall raise the presumption

that such installments have been paid.

67.(A) Article 1285 par. 1, Civil Code of the Philippines. Since D has consented the

assignment of rights made by C in favor of T without reserving his right to the

compensation, T may collect from D the full P20,000.00 because D may not set up

against T, the assignee, the compensation which would pertain to him against C, the

assignor.

68.(B) Article 1291, Civil Code of the Philippines. The obligation of JJ to pay

P15,000.00 was extinguished by the novation, more specifically the real or objective

novation, wherein the object or cause of the obligation is changed such as from

paying P15,000.00 to giving either a specific ring, bracelet or necklace.

69.(C) Article 1256, Civil Code of the Philippines. Given that there are two persons,

Elcano (Oberon’s employee) and Santiago (Oberon’s son), claiming the same right to

collect, the best option that Luke should avail himself is consignation. Tender of

payment will no longer be necessary before the debtor can consign the thing due

with the court given the circumstances.

70.(B) Article 1249 par. 2 and 3, Civil Code of the Philippines. The delivery of

mercantile documents such as checks shall produce the effect of payment only when

they have been cashed, or when through the fault of the creditor they have been impaired. In the
meantime, the action derived from the original obligation shall be

held in abeyance.