6/14/22, 12:52 PM
ACT180 Midterm Exam
ACT180 Midterm Exam
Total points 74/100
This is a multiple choice exam covering Modules 9 - 14.
The respondent's email (h.naim.rh14@s.msumain.edu.ph) was recorded on submission of
this form.
Last Name *
H.NAIM
First Name *
RANIYA
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ACT180 Midterm Exam
1. The substitution or change of an obligation by another, which
extinguishes or modifies the first
*2/2
Novation
Compensation
Consignation
Confusion
2. The transfer to a third person of all the rights appertaining to the
creditor
*2/2
Subrogation
Expromision
Novation
Delegacion
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ACT180 Midterm Exam
3. Not a requisite of cession in payment *
2/2
Sale of the property for the satisfaction of the debt
One debtor and one creditor
Complete or partial insolvency
Abandonment of all debtor's property not exempt from execution
4. When is there no loss of the thing due *
2/2
When it is in possession of another person
When it disappears in such a way that its existence is unknown or it cannot be
recovered
When the object perishes
When it goes out of commerce
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ACT180 Midterm Exam
5. The designation of the debt to which should be applied a payment
made by the debtor who owes several debts
*2/2
Application of payment
Tender of payment
Payment by cession
Dation in payment
6. There is compensation if *
2/2
A owes B a fountain pen and B owes A also a fountain pen. Both debts are due
A in his capacity as guardian of B is a creditor of C. C in turn is a creditor of A who
owes him a personal debt
A, debtor of two partners, is a creditor of the partnership
A owes B P10,000 payable on Dec. 1, 2016. B owes A P10,000 payable on March 1,
2017, and today is February 1, 2017
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7. The following statements concerning payment by cession are true,
except one. Which is the exception?
*0/2
Payment by cession extinguishes the obligations only to the extent covered by the
proceeds of the sale of the debtor's properties
The debtor must be insolvent
The creditors become the owners of the properties of the debtor that were ceded to
them
Cession affects all the properties of the debtor except those exempt from execution
8. The money or currency which the debtor may compel the creditor to *2/2
accept in payment of a debt is known as
Legal Tender
Bill of exchange
Local currency
Notes payable to order
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ACT180 Midterm Exam
9. D owes C P1,000 with G as guarantor. C, on the othe hand, owes D
P8,000. Both debts are already due but D is insolvent. In this case
*0/2
C may collect from G P2,000 because a guarantor can set up compensation as
regards what the creditor owes the principal debtor
C may collect nothing from G because D is insolvent
C may collect from G P10,000
D may collect P8,000 from G
10. The offer made by the debtor to pay his obligation to his creditor is *0/2
known as
Consignation
Application of payment
Tender of payment
Dation in payment
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11. Upon the proposal of a third person, a new debtor substituted the
original debtor without the latter's consent. Later, however, the new
debtor became insolvent and defaulted in his obligation. What is the
effect of the new debtor's default upon the original debtor
*2/2
The original debtor shall pay or perform the obligation with recourse to the new
debtor
The original debtor remains liable since he gave no consent to the substitution
The original debtor shall pay or perform 50% of the obligation to avoid unjust
enrichment on his part
The original debtor is freed of liability since novation took place and this relieved
him of his obligation
12. A borrowed P100,000 from B. The loan was secured by a mortgage *2/2
of A's land in favor of B. Without the knowledge of A, C paid B the sum
of P100,000 for A's debt. As a result
C cannot recover the amount from B in case A refuses to reimburse C
The obligation of A to B was extinguished but A should reimburse C the amount of
P100,000 because he was benefited by the payment
C may foreclose the mortgage on A's land if A cannot pay
C cannot claim reimbursement from A inasmuch as the payment was made without
the knowledge of A
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13. Statement 1 - A commits the crime of theft and is asked to return
*0/2
the car to its owner B. If, before the car is delivered to B, it is destroyed
by a fortuitous event, is A's liability extinguished? Statement 2 - Using
above statement, A had previously asked the owner to accept the car,
but the owner without any justifiable reason refuses to accept the car,
and it is destroyed by a fortuitous event. Is A's liability extinguished?
No, No
Yes, No
Yes, Yes
No, Yes
14. Where a debtor transfers all his properties not subject to execution *2/2
in favor of his creditors so that the latter may sell and apply the
proceeds to their credits
Dation in payment
Cession
Application of payment
Consignation
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ACT180 Midterm Exam
15. The act of depositing the thing due with the court or judicial
*2/2
authorities whenever the creditor cannot accept or refuses to accept
payment
Tender of payment
Consignation
Datio in Solutum
Application of payment
16. The meeting in one person of the qualities of creditor and debtor
with respect to the same obligation
*2/2
Novation
Compensation
Confusion
Condonation
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ACT180 Midterm Exam
17. When two persons in their own right are creditors and debtors of
each other
*2/2
Confusion
Compensation
Novation
Condonation
18. A owes B two debts, both of which are already due. The first debt is *0/2
secured by a mortgage, the second is not. A tells B that the payment he
is now making should be applied to the second debt instead of the first,
which is correct?
B cannot refuse the application if the first debt is older than the second
B may refuse such application on the ground that the first debt is more burdensome
to the debtor
B cannot refuse the application because the preference of the debtor must be
followed
B may refuse such application because the payment shall be applied
proportionately
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ACT180 Midterm Exam
19. Statement 1 - A owes B P10,000 guaranteed by C. B assigns his
*2/2
credit to X. X assigns the credit to Y, Y assigns the credit to A. A's
obligation is extinguished and C is released from his obligation as
guarantor. Statement 2 - A owes B P10,000 guaranteed by C. B assigns
his credit to X. X assigns his credit to Y. Y assigns his credit to C, the
guarantor. A's obligation is extinguished and C is released from his
obligation as guarantor.
False, True
True, True
True, False
False, False
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ACT180 Midterm Exam
20. A owes B P10,000 payable on Dec. 1, 2016 and as a security A
*2/2
pledged his ring to B. The ring was delivered to B. On due date, the ring
is found in the possession of A when it should be in the possession of B.
As a result, one of the following is not correct
A's obligation to B is extinguished.
A's obligation to B is not extinguished
The contract of pledged is extinguished
The contract of pledge is extinguished but not the principal obligation
21. A deposited with B 100 cavans of palay valued at P10,000. A,
*2/2
however, is indebted to B for P10,000 which is already due. When A is
withdrawing the palay, B refuses to deliver claiming compensation. Is B
correct?
Yes, both obligations are extinguished
Yes, considering that the value of the palay is equal to the amount of A's obligation
No, because B's obligation arises from a contract of deposit
No, because there was no stipulation allowing compensation
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ACT180 Midterm Exam
22. Whoever pays for another without the will or against the will of the *2/2
debtor
May demand from the debtor what he has paid
May not recover anything from the debtor
May recover only insofar as the payment has been beneficial to the debtor
May recover from the debtor what he has paid plus damages
23. A owes B P10,000. C, a friend of A approaches B and tells him "I will *0/2
pay you what A owes you. From now on, consider me your debtor, not
A. If B agrees there is
Expromision
Subrogation
Novation
Delegacion
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24. Consignation alone without any tender of payment is sufficient in
the following cases, except
*2/2
When the creditor presents the title to the obligation for collection
When the creditor is absent or unknown or does not appear at the place of payment
When without just cause, the creditor refuses to give a receipt
When two or more persons claim the same right to collect
25. D borrowed P50,000 from C. Subsequently, D proposed to C that T *2/2
would assume his (D's) debt. C accepted the proposal of D. This
substitution of debtor is known as
Expromision
Delegacion
Tradition
Dation in payment
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26. Which of the following payment is not valid? *
2/2
Payment to the person in whose favor the obligation was constituted
Payment to the creditor's successor in interest
Payment to the creditor's heirs
Payment made by the debtor to the person in possession of an order instrument
evidencing the credit but such person is not the endorsee thereof
27. The obligation is not extinguished by reason of the loss of the thing *2/2
through a fortuitous event in three of the following cases. Which is the
exception?
When the debtor has incurred in delay
When the nature of the obligation requires the assumption of risk
When the debtor has promised to deliver the same thing to two or more persons who
do not have the same interest
When the obligation is to give a determinate thing and the parties have not
stipulated whether or not there shall be liability in case of fortuitous events
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28. D owes C P20,000 due on June 20. C owes D P14,000 due on June *2/2
15. On June 12, C assigned his right to X. D consented to such
assignment without any reservation of his right to compensation. On
June 20, X may collect from D
20,000
6,000
14,000
Nothing
29. Legal compensation will not take place if *
0/2
There is controversy or retention involving one of the debts commenced by third
persons and communicated in due time to the debtor
The debts have different due dates
The debts are payable at different places
Both debts consist in sum of money
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ACT180 Midterm Exam
30. In which of the following cases is the payor of the debtor's debt not *0/2
subrogated to the rights of the creditor?
D owes C P10,000. The obligation is guaranteed by G. X pays P10,000 without the
knowledge of D.
D owes C P10,000. The debt is secured by a pledge of D's ring to C. D also owes X
P8,000. X pays C P10,000 without the knowledge of D.
D owes C P10,000. The obligation is guaranteed by G. G pays C P10,000 without the
knowledge of D.
D owes C P10,000. The debt is secured by a pledge of D's ring to C. X pays C
P10,000 with the consent of D.
31. Which of the following is a not aground for the extinguishment of an *0/2
obligation?
Condonation or remission
Death of the creditor
Compensation
Confusion or merger
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ACT180 Midterm Exam
32. The delivery of mercantile documents such as checks will produce
the effect of payment
*2/2
When through the fault of the creditor they have been impaired
Upon delivery of the mercantile document
When they are certified by the bank
When they are presented to the bank for payment
33. There being no express stipulation and if the undertaking is to
deliver a determinate thing, the payment shall be made
*2/2
At the domicile of the creditor
at the domicile of the debtor
Wherever the thing might be at the moment the obligation is to be fulfilled
Wherever the thing might be at the moment the obligation was constituted
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ACT180 Midterm Exam
34. Consignation is a mode of payment which extinguishes an
obligation. Which of the following is not a requisite of consignation?
*2/2
Actual consignation with the proper judicial authorities
Publication of the intended consignation
Existence of a valid debt
There must be prior notice of consignation to persons interested in the fulfillment of
the obligation
35. If the thing is determinate and it is lost due to fortuitous event, the
obligation is extinguished, meaning
*0/2
Debtor is released from his obligation; it is as if he has made payment
there arises a new obligation to deliver a thing that is exactly the same as that lost
if the debtor is in default, the extinguished obligation is converted into monetary
consideration for damages
none of the above
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ACT180 Midterm Exam
36. X obliged himself to pay Y P100,000. X executed a negotiable
*2/2
promissory note in favor of Y. Y endorsed it to Z, then Z to W, then W to
X. The obligation of X to Y is extinguished by
Confusion
Condonation
Compensation
Novation
37. Compensation where one party can claim compensation while the
other cannot
*2/2
Judicial
Conventional
Facultative
Legal
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ACT180 Midterm Exam
38. Five sacks of rice cannot be compensated by five sacks of sugar
because
*2/2
if the things due are consumable, both debts must be of the same kind and quality
both debts must be liquidated and demandable
the two debts must be due
each one of the obligors must be bound principally and be at the same time principal
creditor of the other
39. X obliged himself to deliver to Y a kilo of shabu. Later, they agreed
that X will deliver to Y P50,000 instead of shabu.
*2/2
Original obligation is void; novation is valid
Original obligation is vaid; novation is void
Original obligation is void; novation is void
Original obligation is valid; novaton is valid
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ACT180 Midterm Exam
40. The creditor is bound to accept payment or performance by a third *2/2
person
when debtor is guilty of delay
who has the interest in the fulfillment of the obligation
when obligation becomes due
if stipulated in the obligation
41. Whoever pays for another can recover only insofar as the payment *2/2
has been beneficial to the debtor
if he paid without the knowledge of the debtor
if he paid according to the will of the debtor
if he paid with the knowledge of the debtor
if he paid in good faith
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42. Which is not true about condonation? *
2/2
It may be express
It is essentially gratuitous
Acceptance by the obligor is optional
It may be implied
43. Which of the following is not a requisite of legal compensation *
0/2
that both debts be liquidated and demandable
that each one of the obligors be bound principally, and that he be at he same time
a principal creditor of the other
that the debts are payable at the same place
that the two debts be due
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ACT180 Midterm Exam
44. Legal compensation shall not be proper in three of the following
cases. Which is the exception?
*2/2
Civil liability arising from a criminal offense
Commodatum
Bank deposit
Gratuitous support
45. The delivery of a private document evidencing a credit made
voluntarily by the creditor to the debtor even before the debt is paid
extinguishes the obligation by
*2/2
implied remission
express remission
novation
compensation
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ACT180 Midterm Exam
46. Abby owes Bash two debts both of which are already due. The first *2/2
debt is secured by a mortgage, the second is not. Abby tells Bash that
the payment he is now making should be applied to the second debt
instead of the first. Which is correct?
Bash may refuse such application on the ground that the first debt is more
burdensome to the debtor
Bash may refuse such application because the payment shall be applied
proportionately.
Bash cannot refuse the application if the first debt is older than the second
Bash cannot refuse the application because the preference of the debtor must be
followed
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ACT180 Midterm Exam
47. Ali owes Baba P10,000. Ali proposed to Baba that Coco will pay Ali's *2/2
debt and that Ali will be released from all liabilities. Baba and Coco
agreed to the proposal. Later, when Baba tries to collect from Coco, he
finds out that Coco is insolvent. It was proved that at the time of
delegacion, Coco was already insolvent but this was not known to Ali
neither was the insolvency of public knowledge. Is Ali still liable?
Yes, because the initiative came from Ali
No, because there is delegacion
No, because the insolvency was neither of public knowledge nor known to Ali at
the time he delegated his debt
Yes, because there is delegacion
48. Akie and Becky entered into a contract hereby Akie was to give
*0/2
P200,000. Later, they novated the contract by stipulating that instead
of cash Akie would give a particular car. Subsequently, the car was
destroyed by a fortuitous event. Which is correct?
The original obligation and obligation to deliver the car are both extinguished
The original obligation is extinguished but not the obligation to deliver the car
Akie is liable to pay P200,000, the amount of the old obligation
Novation is not allowed because the things due are not of the same kind
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ACT180 Midterm Exam
49. Which of the following is not a special mode of payment? *
0/2
None of the above
Dacion en pago
Tender of payment
Payment by cession
50. Extinguishment of debt may be made by creditor either verbally or *2/2
in writing
Partial payment
Implied remission
Express remission
None of the above
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