CPA Review School of the Philippines
OBLIGATIONS
DO Dela Cruz
1. Which of the following is a civil obligation?
a.
b.
c.
d.
A obliges himself to pay B P10,000 on October 30, 2015
C is a debtor of D for P20,000 due on September 30, 1995.
The obligation of a husband and wife to observe fidelity
The obligation of a catholic to hear mass every Sunday
2. Specific performance may not be possible in this civil obligation
a.
b.
c.
d.
A, a painter, obliges himself to paint the portrait of B on January 8, 2015
C, a farmer, obliges himself to give his only cow to D on February 14, 2015
E, a veterinarian, obliges himself to give one of his dogs to F on May 1, 2015
G, a registrar of deeds, obliges himself to effect registration of H’s parcel of land on June 20, 2015
3. Upon the proposal of a third person, a new debtor substituted the original debtor without the latter’s consent.
The creditor accepted the substitution. 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?
a.
b.
c.
d.
The original debtor is freed of liability since novation took place and this relieved him of his obligation
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
4. Lennie bought a business class ticket from Alta Airlines. As she checked in, the manager downgraded her to
economy on the ground that a Congressman had to be accommodated in the business class. Lennie suffered
discomfort and embarrassment of the downgrade. She sued the airlines for quasi-delict but Alta Airlines
countered that, since her travel was governed by a contract between them, no quasi-delict could arise. Is the
airline correct?
a. No, the breach of contract may in fact be tortious as when it is tainted as in this case with arbitrariness,
gross bad faith and malice
b.No, denying Lennie the comfort and amenities of the business class as provided in the ticket is a tortious
act
c. Yes, since the facts show a breach of contract, not a quasi-delict
d.Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation between the parties
5. Rudolf borrowed P1M from Rodrigo and Fernando who acted as solidary creditors. When the loan matured,
Rodrigo wrote a letter to Rudolf demanding payment of the loan directly to him. Before Rudolf could
comply, Fernando went to see him personally to collect and he paid him. Did Rudolf make a valid payment?
a. No, since Rudolf should have split the payment between Rodrigo and Fernando
b.No, since Rodrigo, the other solidary creditor, already made a prior demand for payment from Rudolf
c. Yes, since the payment covers the whole obligation
d.Yes, since Fernando was a solidary creditor, payment to him extinguished the obligation
6.
Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat docked in Subic. Before they
could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall not
exempt Roy and Carlos from their obligation. Owing to the loss of the motor boat, such obligation is
deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary?
a. Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are
entitled
b.Solidary or joint upon the discretion of Sam
c. Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat
d.Joint since the conversion of their liability to one of indemnity for damages made it joint
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7.
A natural obligation under the New Civil Code of the Philippines is one which
a. The obligor has a moral obligation to do, otherwise entitling the obligee to damages
b.Refers to an obligation in writing to do or not to do
c. The oblige may enforce through the court if violated by the obligor
d.Cannot be judicially enforced but authorizes the obligee to retain the obligor’s payment or performance
8. Which of the following is not correct in an obligation to give a specific thing?
a.
b.
c.
d.
To preserve or take care of the thing due
To deliver the thing itself
To deliver the fruits of the thing
To deliver the accessions and accessories
9. Which of the following is not correct in an obligation to do?
a.
b.
c.
d.
To sue the debtor for specific performance if he refused to voluntarily fulfill the obligation
The debtor shoulders the cost of execution should he fail to do so
To require that what has been poorly done be undone
To require the debtor to pay damages in case of breach
10. The following are the elements of an obligation, except
a. Active and passive subjects b. Efficient cause
c. Prescription
d. Vinculum
11. A lawful and voluntary act resulting to a benefit, except
a. Negotiorum gestio
b. Solutio indebiti
c. Quasi-contract
d. Quasi-delict
12. The right of the creditor that is enforceable against anybody is, what kind of right?
a. Personal
b. Moral
c. Natural
d. Real
13. The following are the requisites of an obligation, except
a. Passive and active subjects
b. Prestation
c. Efficient cause
d. Demand
14. The right of the creditor that is enforceable against a definite debtor is
a. Real right
b. Natural right
c. Moral right
d. Personal right
15. The person in whose favor the obligation is constituted
a. Obligor
b. Obligee
c. Passive subject
d. Debtor
16. Synonymous to oblige
1.
Creditor
2.
a. 1 and 2
Active subject
3.
b. 1 and 4
Debtor
4.
c. 2 and 3
Passive subject
d. 3 and 4
17. The person who has the duty of giving, doing or not doing
a. Obligee
b. Obligor
c. Active subject
d. Creditor
18. Synonymous to obligor
1.)
Creditor
a. 1 and 2
2.
Active subject
b. 1 and 4
3.
Debtor
c. 2 and 3
4.
Passive subject
d. 3 and 4
19. Unless the law or the stipulation of the parties require another standard of care, every person obliged to give
something is also obliged to take care of it with the proper diligence
a. Observing utmost care
b. Observing extraordinary care
c. Of a father of a good family
d. Observing ordinary diligence
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20. Ordinary diligence is
a. Diligence of a good father of a family
b. Extraordinary diligence
c. Diligence required by law
d. Diligence of a father of a good family
21. The creditor has a right to the fruits of the thing
a. From the time the obligation to deliver it arises
b. From the time the fruits have been delivered
c. From the time there is meeting of the minds
d. From the perfection of the contract
22. From the time the fruits have been delivered, the creditor shall acquire
a. Real right
b. Personal right
c. Moral right
d. Inchoate right
23. If A sells to B a fountain pen, the giving by A to B of the fountain pen is
a. Actual tradition
b. Constructive delivery
c. Symbolical tradition
d. Traditio longa-manu
24. A was employed as professional driver of B Transit Bus owned by C. In the course of his work, A hit a
concrete post causing serious injury to passenger W and pedestrian Y. The victims sued the driver and the
owner of the bus for damages. Which of the following statements is correct?
a. C is not liable if C can prove that he exercised the diligence of a good father of a family in the selection
and supervision of his employees
b. The conviction of A in a criminal case makes C liable for damages arising from criminal act
c. The liability of C shall cease if the driver A is acquitted in the criminal case
d. The guilt of driver A must be established beyond reasonable doubt to make C liable
25. A juridical necessity to give, to do or not to do
a. Civil obligation
b. Natural obligation
c. Moral obligation
d. Social obligation
26. They give a right of action to compel their performance
a. civil obligation
b. moral obligation
c. natural obligation
d. social obligation
27. The obligee has a right to enforce the obligation against the obligor in a court of law
a. civil obligation
b. moral obligation
c. natural obligation
d. social obligation
c. natural obligation
d. social obligation
28. This is based on equity and justice
a. civil obligation
b. moral obligation
29. The object or subject matter of the obligation
a. Prestation
b. Vinculum
c. Active subject
d. Passive subject
30. The efficient cause or juridical tie why the obligation exists
a. Active subject
b. Passive Subject
c. Prestation
d. Vinculum
31. The duty not to recover what has voluntarily been paid although payment was no longer required
a. Civil obligation
b. Natural obligation
c. Moral obligation
d. Juridical obligation
32. The following are sources of obligations derived from law, except
a. contracts
b. quasi-contracts
c. delicts
d. quasi-delicts
33. The duty to pay taxes and to support one’s family are obligations arising from
a. Law
b. Contracts
c. Quasi-contracts
d. Delicts
34. The obligation of husband and wife to render mutual help and support arises from
a. contract
b. law
c. quasi-contract
d. quasi-delict
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35. A supports B, a minor, because B’s father refuses to support B. The father is obliged to reimburse A. The
source of obligation is
a. contract
b. quasi-contract
d. quasi – delict
c. delict
36. A juridical relation resulting from a lawful, voluntary, and unilateral act and which has for its purpose the
payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of
another.
a.Contract
b.Quasi-contract
c. Delict
d. Quasi-delict
37. When a person voluntarily takes charge of another’s abandoned business or property without the owner’s
authority where reimbursement must be made for necessary and useful expenses.
a. Quasi-contract
b. Quasi-delict
c. Negotiorum gestio
d. Solutio indebiti
38. When something is received when there is no right to demand it , and it was unduly delivered thru mistake,
the recipient has the duty to return it
a. Quasi-contract
b. Quasi-delict
c. Negotiorum gestio
d. Solutio indebiti
39. - A quasi-contract is an implied contract
- A defendant who is acquitted in a criminal case is no longer liable civilly
a. true, true
b. true, false
c. false, true
d. false, false
b. Quasi-delict
c. Negotiorum gestio
d. Solutio indebiti
40. Tort or culpa aquiliana is
a. Quasi-contract
41. A fault or act or omission of care which causes damage to another, there being no pre-existing contractual
relations between the parties
a. Quasi-contract
b. Quasi-delict
c. Negotiorum gestio
d. Solutio indebiti
42. Omission of the diligence which is required by the circumstances of person, place and time
a. Ignorance
b. Negligence
c. Impotence
d. Insanity
43. When one exercises a right recognized by law, knowing that he thereby causes an injustice to another, the
latter is entitled to recover damages. This is known as the principle of
a.
b.
Res ipsa loquitur
Damnum absque injuria
c. Vicarious liability
d. Abuse of rights
44. The source of obligations which is a rule of conduct, just and obligatory, promulgated by legitimate
authorities for common good, benefit and observance
a. Contracts
b. Quasi-contracts
c. Delicts
d. Law
45. On August 1, 2015, A obliged himself to give his only dog to B if B will pass the October 2015 CPA
Examination. If the CPA examination was held on October 10, 11, 17 and 18 and the results were released
on October 19, 2015 and B passed and took his oath on November 20, 2015, B is entitled to the dog on
a. August 1, 2015
b. October 18, 2015
c. October 19, 2015
d. November 20, 2015
46. Using the preceding number, if the dog gave birth to a puppy on October 18, 2015, which of the following
statements is correct?
a. A is entitled to the puppy because in unilateral obligations, the debtor shall appropriate the fruits
b. B is entitled to the puppy because the condition has been fulfilled and such shall retroact to the day of
constitution of the obligation
c. B may demand from A the value of the puppy and damages if A refuses to give the puppy
d. A shall pay damages to B if A shall appropriate the puppy
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47. Using the preceding number, if A delivered the dog and the puppy on October 20, 2015, which of the
following statements is correct?
a. B acquired real right over the dog and the puppy
b. A can recover the puppy but not the dog
c. B can sell the dog and the puppy
d. A can recover the dog but not the puppy
48. A owes B P1,000. A, knowing that the debt has prescribed, nevertheless, still pays B. Can A recover what
he voluntarily paid?
First answer
Second answer
a. True, true
Yes, because B has no right to demand the payment effected by A
No, the payment extinguished the natural obligation.
b. True, false
c. False, true
d. False, false
Items 49 - 53 A kind of constructive delivery whereby:
49. There is delivery when the keys of a warehouse are given
a. Traditio simbolica
b. Traditio longa-manu
c. Traditio brevi-manu
d. Traditio constitutom possessorium
50. There is delivery by mere consent or the pointing out of the object.
a. Traditio simbolica
b. Traditio longa-manu
c. Traditio brevi-manu
d. Traditio constitutom possessorium
51. A possessor of a thing not as an owner, becomes the possessor as owner
a. Traditio simbolica
b. Traditio longa-manu
c. Traditio brevi-manu
d. Traditio constitutom possessorium
52. A possessor of a thing as an owner retains possession no longer as an owner, but in some other capacity
a. Traditio simbolica
b. Traditio longa-manu
c. Traditio brevi-manu
d. Traditio constitutom possessorium
53. The opposite of brevi-manu
a. Longa-manu
b. Simbolica
c. Constitutom possessorium
d. Quasi-tradition
54. If a thing is capable of particular designation
a. Generic
b. Specific
c. Indeterminate
d. Indeterminable
55. If a thing refers to a class, to a genus and cannot be pointed out with particularity.
a. Generic
b. Specific
c. Determinate
d. Indeterminable
56. A wife was about to deliver a child. Her parents brought her to the hospital. Who should pay the expenses
for medical attendance?
Answer 1 – The husband, because it is his duty to support his wife and support includes medical
attendance.
Answer 2 – The parents, because they were the persons who brought the wife to the hospital
a. Both answers are correct
b. Both answers are not correct
c. Only the first is correct
d. Only the second is correct
57. The following are kinds of fruits of an obligation, except
a. natural
b. industrial
c. civil
d. penal
58. Spontaneous products of the soil and the offspring and other products of animals
a. natural
b. industrial
c. civil
d. penal
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59. Products of the soil through cultivation or intervention of human labor.
a. natural
b. industrial
c. civil
d. penal
60. Fruits arising out of contracts – like rental payments
a. natural
b. industrial
c. civil
d. penal
61. When does the obligation to deliver arise?
Answer 1 – If there is no term or condition, then from the perfection of the contract
Answer 2 – If there is a term or condition, then from the moment the term arrives or the condition
happens
a. True, true b. True, false
c. False, true d. false, false
62. A is obliged to give B 10 kilos of sugar, which of the following is not correct?
a.
b.
c.
d.
B can demand that A obtain the sugar and deliver it to him
B can just buy 10 kilos of sugar and charge the expenses to A
A can insist on just paying B damages or the monetary value of the sugar
B may require another person to deliver the sugar and charge the expenses to A
63. Where demand by the creditor shall be necessary in order that delay may exist
a. When time is of the essence of the contract
b. When demand would be useless
c. When the obligor has expressly acknowledged that he is in default
d. When the obligor requested for an extension of time
64. Debtor’s default in real obligation
a. Mora accipiendi
b. Mora solvendi ex-re
c. Mora solvendi ex persona
d. Compensatio morae
65. Debtor’s default in personal obligation
a. Mora accipiendi
b. Mora solvendi ex-re
c. Mora solvendi-ex persona
d. Compensatio morae
66. Default on the part of the creditor
a. Mora accipiendi
b. Solvendi ex-re
c. Mora solvendi ex persona
d. Compensatio morae
67. Default on the part of both parties
a. Mora accipiendi
b. Mora solvendi ex-re
c. Mora solvendi ex persona
d. Compensatio morae
68. A borrowed money from B payable on Dec. 10, 2015. If A failed to pay on due date, will A be in delay?
a. Yes, because there is stipulation as regards the due date. c. No, because demand has not been made by B
b. Yes, if the obligation is in writing.
d. No, if A has the money to pay B
69. Damages awarded for mental and physical anguish
a. Moral
b. Exemplary
c. Nominal
d. Temperate
c. Nominal
d. Exemplary
c. Nominal
d. Moral
70. Damages awarded to vindicate a right
a. Liquidated
b. Actual
71. Damages awarded to set an example
a. Exemplary
b. Liquidated
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72. When the exact amount of damages cannot be ascertained
a. Exemplary
b. Liquidated
c. Temperate
d. Moral
c. Actual
d. Moral
73. Damages predetermined beforehand
a. Temperate
b. Liquidated
74. A obliged himself to deliver to B the following:
1. 2015 Sing-It Yamaha Organ
2. Malagona passenger jeepney with engine No. 69 and chasis No. 88
First Statement – In case A failed to deliver a 2015 Yamaha Organ, the court may compel A to
deliver a 2015 Yamaha Organ plus damages
Second Statement – In case A failed to deliver the jeepney, the court may compel A to deliver the
jeepney plus damages
a. True, true b. True, false
c. False, true d. False, false
75. I. If a person obliged to do something fails to do it, the same shall be executed at his cost.
II. 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.
a. True, true
b. True, false
c. False, true
d. False, false
76. I. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for fraud
is void.
II. If the law or contract does not state the diligence which is to be observed in the performance of an
obligation, that which is expected of a father of a good family shall be required.
a. True, true
b. True, false
c. False, true
d. False, false
77. I. The receipt of a later installment of a debt without reservation as to prior installments, shall give rise to
a rebuttable presumption that such installments have been paid.
II. If a taxpayer pays his income tax liability for the current year, there is a presumption that tax liability
for the previous year has been paid.
a. True, true
b. True, false
c. False, true
d. False, false
78. With regard to the right as to the fruits of the thing, which is not correct?
a. If the obligation is subject to a suspensive condition, the obligation to deliver arises from the
moment the condition happens.
b. If the obligation is subject to a suspensive period, the obligation to deliver arises upon the
expiration of the term or period
c. If there is no condition or term for its fulfillment, the obligation to deliver arises from the
perfection of the contract or creation of the obligation
d. If the obligation arises from a contract of sale, the vendor has a right to the fruits of the thing from
the time the obligation to deliver arises.
79. A is obliged to deliver his only car to B on November 20, 2011 If A does not deliver, and on November 22,
2011, a typhoon destroys the car, which is correct?
a. A is not liable because the obligation is extinguished
b. A is liable because he is in delay
c. A and B will divide the loss equally
d. A’s obligation is converted into a monetary obligation
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80. I. When what is to be delivered is a determinate thing, the creditor may compel the debtor to make the
delivery and if the debtor refuses, the creditor may ask that the obligation be complied with at the expense
of the debtor.
II. The obligation to give a determinate thing includes that of delivering all its accessions and accessories,
even though they may not have been mentioned.
a. True, True
b. True, False
c. False, True
d. False, False
81. What is the basis of the liability of a school when a student is stabbed inside the campus by a stranger in the
school?
a. Contracts
b. Quasi-contracts
c. Delicts
d. Quasi-delicts
82. The following except one, are included in civil liability. The exception is
a. Restitution
b. Reparation c. Indemnification
d. Starvation
83. The thing itself shall be restored, as a rule
a. Restitution
b. Reparation
c. Indemnification
d. Starvation
84. The court determines the amount of damage taking into consideration the price of the thing and its
sentimental value to the injured person
a. Restitution
b. Reparation
c. Indemnification
d. Starvation
85. The consequential damages suffered by the injured person and those suffered by his family or third person
by reason of the act
a. Restitution
b. Reparation c. Indemnification
d. Starvation
86. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors
a. Accion reinvindicatoria
b. Accion pauliana c. Accion subrogatoria d. Accion quanti-minoris
87. A borrower agreed that in case of non-payment of his debt, to render services as a servant. Which of the
following is not correct?
a. If the services will be rendered in satisfaction of the debt, the stipulation is valid.
b. If the services will be “for free”, the stipulation is void for being contrary to law and morals.
c. If the services will not be gratuitous, specific performance of the service will be the proper
remedy in case of non-compliance.
d. Should there be a valid stipulation as regards the rendition of services, an action for damages
should be brought in case of non-compliance.
88. A ordered B, a 10 year old boy to climb a high and slippery mango tree with a promise to give him part of
the fruits. B was seriously injured when he fell while climbing the tree. Is A liable?
A) first Answer
No, because no person shall be responsible for fortuitous events.
B) second Answer Yes, because A was negligent in making the order without taking due care to
avoid a reasonable foreseeable injury to B.
a. True, true
b. True, false
c. False, true
d. False, false
89. A pays for B’s transportation fare without B’s knowledge and later discovers that B was entitled to half-fare.
Which is not correct?
a. A can recover the half-fare from B
b. A can recover the half-fare from the carrier
c. A can recover ½ from B and ½ from the carrier
d. A can recover half-fare from B only
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90. A borrowed P100,000 from B. The loan was secured by a mortgage 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
a. C may foreclose the mortgage on A’s land if A cannot pay
b. C cannot claim reimbursement from A inasmuch as the payment was made without the knowledge
of A
c. C can recover the amount from B in case A refuses to reimburse C
d. 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
91. When the debtor of a debtor is ordered not to pay the latter so that preference would be given to the latter’s
creditor.
a. Garnishment
b. Interpleader
c. Injunction
d. Attachment
92. A obtained a loan from B bank. The loan was embodied in several promissory notes. As security the
borrower executed a chattel mortgage on his standing crops. Said crops were however subsequently
destroyed by typhoon “Rosing”. Is A still liable for the loan despite the destruction of the crops by a
fortuitous event?
1st answer
nd
2 answer
Yes, the obligation of A was to deliver a generic thing – money.
No, the obligation was to deliver determinate things – the standing crops.
a. True, true
b. True, false
c. False, true
d. False, false
93. A sold a half –interest in his specific car to B. It was agreed that the price to be paid by B would be used
in installing a new engine on the car. Later, the car was destroyed by a fortuitous event. Is B’s obligation to
pay the price extinguished?
1st answer
Yes, there is no more use of installing a new engine since the car has already been
destroyed by a fortuitous event.
2nd answer
No, B must still pay because his obligation to pay is generic.
a. True, true
94. I.
b. True, false
c. False, true
d. False, false
A commits the crime of theft and is asked to return the car to its owner B. If, before the car
delivered to B it is destroyed by a fortuitous event, Is A’s liability extinguished?
is
II. 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?
a. Yes, Yes
b. No, Yes
c. Yes, No
d. No, No
95. I. There is no delay in an obligation not to do something
II. Solutio indebiti and negotiorum gestio are implied contracts
a. True, true
b. True, false
c. False, true
d. False, false
96. I. Consent of the parties is required in quasi-contract.
II. The creditor acquires real rights over the thing from the time the obligation to deliver arises
a. True, true
b. True, false
c. False, true
d. False, false
97. The creditor has a right to the fruits of the thing from the time
a. The thing is delivered
b. The fruits are delivered
c. The obligation to deliver the thing arises
d. The sale is perfected
98. The buyer has the right to the fruits of the thing from the time
a. The thing is delivered
b. The fruits are delivered
c. The obligation to deliver the thing arises
d. The sale is perfected
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99. If A pays a debt that has prescribed:
1. not knowing it has prescribed, A can recover on the ground of undue payment
2. knowing it has prescribed, A cannot recover for this would be a case of natural obligation
a. Both 1 and 2 are true
b. Only 1 is true
c. Only 2 is true
d. Both 1 and 2 are false
100. A is obliged to give B his specific car on December 31, 2015. There was no delivery and on January 4,
2016 the garage of the car collapsed due to heavy rains and strong winds of Typhoon Pining, and the car
was totally destroyed. Is A still liable?
a.
b.
c.
d.
No, even if A was in default, he could plead impossibility of performance
Yes, because the contract is perfected
No, because there was no demand by B to deliver the car
Yes, the obligation to deliver the car is changed to pay the equivalent value because B is in legal delay
101. This obligation is demandable at once when it
a. Has a resolutory condition b. Has a suspensive condition c. Is with a term ex-die d. Has a period
102. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed
to be with a
a. Resolutory period
b. Suspensive condition c. Potestative condition
d. Period
103. A period with a suspensive effect
a. I will support you beginning January 1 of next year
b. I will support you until January 1 of next year
c. I will support you if A dies of TB
d. will support you if A marries B
104. A period with a resolutory effect
a. I will support you beginning January 1 of next year
b. I will support you until A dies
c. I will support you if A dies
d. I will support you if A dies of TB
105. The obligation begins only from a day certain or upon the arrival of the period
a. Ex die
b. In diem
c. Conditional
d. With a period
106. The obligation remains valid up to a time certain but terminates upon the arrival of said period
a. With a period
b. Conditional
c. Ex die
d. In diem
107. Anything paid or delivered before the arrival of the period, the obligor being unaware of the period or
believing that the obligation has become due and demandable.
a. May be recovered without interests
b. May be recovered with interests
c. May be recovered with fruits and interests
d. May not be recovered
108. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit
a. Of both the creditor and debtor
b. Of the creditor only
c. Of the debtor only
d. Of third persons
109. This is a valid obligation
a.
b.
c.
d.
A will give B P100,000 if B will kill C
A will give B P1,000,000 if B will agree to be the mistress of A
A will give B P10,000 if B can make C rise from the dead
A will give B P1,000 if B will pose nude in a painting session.
110. Where two or more prestations have been agreed upon but only one is due, the obligation is
a. Alternative
b. Facultative
c. Conjoint
d. Solidary
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111. Using the preceding number, the right of choice, belongs
a. To the debtor
b. To the creditor
c. To both debtor and creditor
d. To third person
112. A is obliged to give B, at A’s option either object No.1, Object No. 2, or Object No.3. If all objects were
lost thru A’s fault, which is correct?
a. The value of the first thing lost plus damages must be given to B
b. The value of the last thing lost plus damages must be given to B
c. The value of any of the things lost plus damages must be given to B
d. The obligation is extinguished
113. I. Using the preceding number, if objects nos. 1 and 2 were destroyed by a fortuitous event and later
object No. 3 is destroyed by A’s fault, A would still be liable.
II. Using the preceding number, if objects Nos. 1 and 2 were destroyed by A’s fault and later object No.
3 is lost by a fortuitous event, A would still be liable.
a. True, true
b. True, false
c. False, true
d. False, false
114. A is obliged to give B either objects No.1 or No. 2 or No. 3 at B’s option. Before B communicated his
choice to A, object No. 1 had been destroyed, thru A’s fault and object No. 2 had been destroyed by a
fortuitous event. B may
a. Demand object No. 3 only as it is still available
b. Demand the price of object No. 1 only plus damages because it was destroyed by A’s fault
c. Demand the value of object No. 2 as the right of choice belongs to B
d. Demand either object No. 3 or the price of object No. 1 plus damages
115. Any of the debtors is bound to render compliance of the entire obligation.
a. alternative
b. facultative
c. joint
d. solidary
116. In a joint obligation, joint means any of the following, except
a. pro-rata
b. proportionate
c. mancomunada simple
d. Individually and collectively
117. In Facultative obligations, if substitution has been made, which of the following is false?
a. The obligation is extinguished
b.The loss of the original prestation is immaterial
c. The obligation is converted into a simple obligation
d.The obligation ceases to be facultative
118. Using the preceding number, and the substitute is lost by a fortuitous event, which is true?
a.
b.
c.
d.
The obligation is extinguished
The debtor is liable for damages
The original prestation must be given
The debtor must give another object which is equally satisfactory
119. Using the preceding number, but the substitute is lost due to debtor’s fault, which is true?
a. The obligation is extinguished
b.The debtor is liable for damages
c. The original prestation must be given
d.The debtor must give another object which is equally satisfactory
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120. Instances where the law imposes solidary liability, except
a.
b.
c.
d.
obligations arising from tort
obligations of bailees in commodatum
liability of principals, accomplices and accessories of a felony
liability of partners arising out of a contract
121. This will result to a solidary liability
a.
b.
c.
d.
vitiated consent on the part of one of the debtors
insolvency of one of the debtors
default on the part of one of the debtors
quasi-delict commited by one of the partners acting in the ordinary course of business
122. Where only one prestation has been agreed upon, but the obligor may render another in substitution, the
obligation is
a. Alternative
b. Facultative
c. Conjoint
d. Solidary
123. Where two or more prestations have been agreed upon, and all of them must be performed, the obligation
is
a. Alternative
b. Facultative
c. Conjoint
d. Solidary
124. A and B are solidary debtors of C and D, solidary creditors, to the amount of P1,000. C can demand
a. P1,000 from A or P1,000 from B
b. P1,000 from A and P1,000 from B
c. P500 from A or P500 from B
d. P500 from A and P500 from B
125. A and B solidary debtors of C and D, joint creditors, to the amount of P1,000 – C can demand
a. P1,000 from A or P1,000 from B
b. P500 from A or P500 from B
c. P500 from A and P500 from B
d. P250 from A and P250 from B
126. A and B are joint debtors of C and D, solidary creditors, to the amount of P1,000. C can demand
a. P1,000 from A or P1,000 from B
b. P500 from A or P500 from B
c. P500 from A and P500 from B
d. P250 from A and P250 from B
127. A and B are joint debtors of C and D, joint creditors, to the amount of P1,000. C can demand
a. P500 from A or P500 from B
b. P250 from A or P250 from B
c. P250 from A and P250 from B
d. P500 from A and P500 from B
128. This is synonymous to joint obligation
a. Joint and several
b. In solidum
c. Individually and collectively
d. Mancomunada simple
129. This is synonymous to solidary obligation
a. Pro-rata
b. Mancomunada
c. Proportionate
d.Juntos o separadamente
130. A, B and C are joint debtors of D for P3,000. If A is insolvent, how much should B pay D?
a. P1,000
b. P1,500
c. P2,000
d. P3,000
131. In 2014, A, B and C bound themselves in solidum to give D P9,000 subject to the following conditions:
A will pay in 2015, B, if D passes the 2016 CPA board exams and C will pay in 2017. In 2015, how much
can D demand from C?
a. P9,000
b. P6,000
c. P 3,000
d. P0
132. A, B and C are solidary debtors of D for P3,000. D remitted C’s share. A therefore paid later only P2,000.
A can recover reimbursement from B in the amount of
a. P1,000
b. P1,500
c. P500
d. P0
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133. Using the preceding number, if B is insolvent, A can recover from C the amount of
a. P1,000
b. P1,500
c. P500
d. P0
134. A, B, and C are solidary debtors of D in the amount of P1,000. D remitted the entire obligation when A
offered to pay. A can demand reimbursement from B in the amount of
a. P1,000
b. P500
c. P333
d. P0
135. A, B, and C are solidary debtors of D in the amount of P3,000 but A was incapacitated to give his consent
as he was a minor. If D sues B, how much will B be liable for?
a. P3,000
b. P2,000
c. P1000
d. P0
136. Using the preceding number, if D sues A, how much will A be liable for?
a. P3,000
b. P2,000
c. P1000
d. P0
137. A is indebted to solidary creditors B, C, and D, for P90,000. Without the knowledge of B and C , D
remitted the obligation of A. as a result,
a. The obligation of A to pay P90,000 is extinguished
b. The obligation is not extinguished because there is no consent from B and C
c. The obligation is extinguished only up to P30,000
d. The obligation is extinguished up to P60,000
138. A, B and C borrowed P6,000 from D and E, payable in 3 months with A giving in pledge her diamond
ring as security for the amount borrowed. How much can E collect from C?
a. P1,000
b. P2,000
c. P3,000
d. P6,000
139. A is obliged to give B her college ring. If she fails to do so, she must give P10,000. This is
a. Alternative obligation
b. Conjoint obligation
c. Facultative obligation
d. Obligation with a penal clause
140. Where the penalty takes the place of indemnity for the damages and for the payment of interest
a. Where there is stipulation to the effect that damages or interest may still be recovered, despite the
presence of the penalty clause
b. When the debtor refuses to pay the penalty imposed in the obligation
c. When the debtor is guilty of fraud or dolo in the fulfillment of the obligation
d. When there is breach of the obligations
141. This is an obligation with a resolutory condition
a. I’ll give you P10,000 if you pass the 2016 CPA board examination
b. I’ll give you my car now, but should you fail in any of your subjects, your ownership will cease
and it will be mine again
c. I’ll give you P10,000 on December 31, 2016
d. I’ll give you P10,000 if A dies of TB
142. I. If the condition is potestative on the part of the debtor, the obligation is void.
II. If the condition is potestative on the part of the creditor, the obligation is valid.
a. True, true
b. True, false
c. False, True
d. False, False
143. A owns a house rented by B. A sold the house to C where C agreed to pay the balance of the purchase
price as soon as B leaves the premises. It was further agreed that C will take care of seeing to it that B
vacates the house. Which is correct?
a. The contract is void because it is potestative on the part of C
b. The contract is void because the consent of B was not obtained
c. The contract is valid because the condition is mixed
d. The contract is valid if B is willing to vacate the premises
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144. I. The condition that some event happens at a determinate time shall extinguish the obligation as soon as
the time expires or it has become indubitable that the event will not take place.
II. The condition that some event will not happen at a determinable time shall render the obligation
effective from the moment the time indicated has elapsed, or it has become evident the event cannot
occur
a. True, true
b. True, false
c. False, true
d. False, false
145. I. A father promised to give his son a car if the son will marry B this year. If by the end of the year, B is
already dead or the son has not married B, the obligation to give a car is effective and demandable.
II. A father promised to give his daughter a car if the daughter will not marry her boyfriend earlier than
December 31, 2010. If by December 31, 2010, the daughter has not yet married her boyfriend, or if prior
thereto, her boyfriend has died, the obligation is extinguished.
a. True, true
b. True, false
c. False, true
d. False, false
146. I. Obligations with a resolutory period take effect at once, but terminate upon arrival of the day certain.
II. Obligations with a resolutory condition take effect at once, but terminate upon happening of the
condition.
a. True, true
b. True, false
c. False, true
d. False, false
147. A borrowed money from B and pledged her ring as security. It was agreed that A was to pay the
money loaned with interest at the end of one year. Before the expiration of the one-year period
a.
b.
c.
d.
A may compel B to accept her payment
A may be allowed to pay B, if B consents
A may compel B to accept her payment because the period is deemed for the benefit of A
B may refuse A’s payment as the period is deemed for the benefit of B
148. The debtor shall lose every right to make use of the period, except
a. When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt
b. When he does not furnish to the creditor the guaranties or securities which he has promised
c. When through fortuitous events or by his own acts the guaranties or securities have been
impaired, unless he immediately gives new ones equally satisfactory
d. When the debtor violates any undertaking in consideration of which the creditor agreed to the
period
149. I . “We promise to pay” when there are two or more-signatures = joint liability
II. “I promise to pay” when there are two or more signatures = solidary liability
a. True, true
b. True, false
c. False, true
d. False, false
150. A obliged himself to pay B P100,000 in 30 days plus a penalty of P10,000 if A fails to pay the obligation
in due time. A failed to pay the obligation in 30 days, B can demand from A
a. The principal of P100,000 plus P10,000 penalty
b. The principal of P100,000 plus P10,000 penalty plus legal interest
c. The principal Of P100,000 plus P10,000 penalty, plus legal interest, plus damages
d. The principal of P100,000 plus legal interest, plus damages
151. The creditor is entitled to recover damages and interest in addition to the penalty stipulated
A) When the debtor refuses to pay the penalty
B) When the debtor is guilty of fraud in the fulfillment of the obligation
a. True, true
b. True, false
c. False, true
d. False, false
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152. Action where a person in possession of certain property may bring an action against the conflicting
claimants to compel them to interplead and litigate their several claims among themselves
a. Garnishment
b. Interpleader
c. Injunction
d. Attachment
153. A judicial process by virtue of which a person is generally ordered to refrain from doing something
a. Garnishment
b. Interpleader
c. Injunction
d. Attachment
154. Where a property is alienated to the creditor in satisfaction of a debt in money
a. Dation in payment
b. Payment by cession
c.Application of payment
d. Consignation
155. Where a debtor transfers all his properties not subject to execution in favor of his creditors so that the
latter may sell them and thus apply the proceeds to their credits.
a. Dation in payment
b. Cession
c.Application of payment
d. Consignation
156. The act of offering the creditor what is due him together with a demand that the creditor accept the same
a.Application of payment
b. Tender of payment
c. Datio in solutum
d. Cession
157. The act of depositing the thing due with the court or judicial authorities whenever the creditor cannot
accept or refuses to accept payment.
a. Tender of payment
b. Consignation
c.Application of payment
d. Datio in solutum
158. The meeting in one person of the qualities of creditor and debtor with respect to the same obligation
a. Confusion
b. Compensation
c. Novation
d. Condonation
159. When two persons in their own right are creditors and debtors of each other
a. Confusion
b. Compensation
c. Novation
d. Condonation
160. This is not necessary in order that compensation may prosper
a. That the two debts are both due
b. That the two debts be liquidated and demandable
c. That there be a retention or controversy commenced by third persons and communicated in due
time to the debtor
d. Both debts consists in a sum of money, or if the things due are consumable, they be of the same
kind, and also of the same quality if the latter has been stated.
161. Compensation cannot take place, except
a. When one debt arises from the obligations of a depositary
b. When one debt arises from the obligations of a bailee in commodatum
c. When one debt arises because of a claim for support due to gratuitous title
d. When one debt arises from a bank deposit
162. The substitution or change of an obligation by another, which extinguishes or modifies the first
a. Confusion
b. Compensation
c. Novation
d. Consignation
163. Novation which changes the object or the principal condition of the obligation
a. Real
b. Personal
c. Mixed
d. Partial
164. Novation which changes the parties to the obligation
a. Real
b. Personal
c. Mixed
d. Partial
165. Expromission, delegacion or subrogating a third person in the right of the creditor
a. Real
b. Personal
c. Mixed
d. Partial
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166. Novation which changes the object and parties of the obligation
a. Real
b. Personal
c. Mixed
d. Partial
167. Substitution of debtor where the initiative comes from a third person
a. Delegacion
b. Expromission
c. Subrogation
d. Novation
168. Substitution of debtor where the initiative comes from the debtor
a. Delegacion
b. Expromission
c. Subrogation
d. Novation
169. The transfer to a third person of all the rights appertaining to the creditor
a. Delegacion
b. Expromission
c. Subrogation
d. Novation
170. Legal subrogation is presumed in the following. Which is not correct?
a. When a third person, not interested in the obligation, pays with the approval of the creditor
b. When a creditor pays another creditor who is preferred, even without the debtor’s knowledge
c. When a third person, not interested in the obligation, pays with the express or tacit approval of
the debtor
d. When, even without the knowledge of the debtor, a person interested in the fulfillment of the
obligation pays, without prejudice to the effects of confusion as to the latter’s share.
171. I. Proof of actual damages suffered by the creditor is not necessary in order that the penalty
agreed upon may be demanded.
previously
II. Proof of actual damages suffered by the creditor is not necessary in an obligation with a penal
clause.
a. True, true
b. True, false
c. False, true
d. False, false
172. I. Whoever pays for another may demand from the debtor what he has paid, except that if he paid
without the knowledge or against the will of the debtor he cannot recover anything.
II. The debtor of a thing cannot compel the creditor to receive a different one, although the latter may
be of the same value as, or more valuable than that which is due.
a. True, true
b. True, false
c. False, true
d. False, false
173. A owes B two debts, both of which are already due. The first debt is 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?
a. B may refuse such application on the ground that the first debt is more burdensome to the
debtor
b. B may refuse such application because the payment shall be applied proportionately
c. B cannot refuse the application because the preference of the debtor must be followed
d. B can not refuse the application if the first debt is “older” than the second
174. I. A has a P10,000 savings deposit with XYZ Bank. One day A borrowed P2,000 from the bank. On
maturity of the loan, without seeking permission from A, the bank subtracted the P2,000 from A’s
account. Is the bank’s action proper?
II. A asked B to keep P10,000 for him. Later, A borrowed P4,000 from B. When A asked for the
return of his money, B gives him only P6,000 alleging partial compensation. Is B correct?
a. Yes, Yes
b. No, Yes
c. Yes, No
d. No, No
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175. A owes B P10,000 with C as a guarantor. A paid P4,000 leaving P6,000 unpaid balance. D without the
knowledge of A, paid B the sum of P10,000. As a result of this payment.
a. The obligation is not extinguished as the payment is without the consent of A.
b. The obligation is extinguished but D cannot recover from A instead he should go after the
guarantor.
c. The obligation is extinguished but D can recover only P6,000 from A and if A cannot pay, D
should demand payment from C.
d. The obligation is extinguished, but D cannot recover P10,000 but only P6,000 from A and if A
cannot pay, he cannot go after C.
176. A owes B P10,000 C in behalf of A, pays B P10,000 against the consent of A, although C had previously
told A that he (C) did not intend to be reimbursed. Nevertheless, B accepted the payment by C in behalf
of A.
1st statement
2nd statement
a. True, true
A’s obligation towards B is extinguished.
C may still recover from A because A did not consent to what the law deems a
donation on the part of C in favor of A
b. True, false
c. False, true
d. False, false
177. A owes B two debts, both of which are already due. The first debt is secured by a mortgage while 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.
1st statement
B may refuse to accept such application on the ground that the first debt is more
burdensome to the debtor
2nd statement
B cannot refuse such application because the preference of the debtor must be
followed.
a. True, true
b. True, false
c. False, true
d. False, false
178. I. A owes B P10,000, guaranteed by C. B assigns his 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.
II. 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.
a. True, true
b. True, false
c. False, true
d. False, false
179. A has two creditors, B and C. B is a mortgage creditor for P20,000, and C is an ordinary creditor for
P10,000. C paid A’s debt of P20,000 to B.
1st statement
2nd statement
a. True, true
If C’s payment is with A’s knowledge, C will be subrogated in the rights of B.
If C’s payment is without A’s knowledge, C will not be subrogated in the rights
of B.
b. True, false
c. False, true
d. False, false
180. A and B are jointly liable to deliver a particular car valued at P200,000 to C on July 1, 2015 Which is
correct?
a. The prestation is indivisible making the liability of A and B solidary
b. If on July 1, 2015 A is willing to deliver the car but B is not, C may enforce the obligation against
A
c. A is liable for a proportionate part of the obligation and will be liable also for damages if B is not
ready to comply with his obligation, even if A is willing to deliver the car
d. The liability of A and B is joint and that damages may be assessed only against the debtor who
violated the obligation
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181. A executes in favor of B a promissory note for P1,000,000 payable after two years, secured by a
mortgage on a building valued at P2,000,000. One year after the execution of the note, the mortgaged
building was totally burned. Can B demand from A the payment of the value of the note?
a. Yes, if A is willing to pay B
b. No, if A refuses to pay B
c. Yes, even if A gives another security which is equally satisfactory
d. Yes, unless A gives another security which is equally satisfactory
182. A obliged himself to pay B P10,000 as soon as possible. Three months later, B demanded payment from
A but the latter refuses to pay. B can
a. File an action in court compelling A to pay the obligation
b. Consider the obligation void because the phrase as soon as possible is indeterminable
c. Go to court so that the court will fix the date of payment
d. Ask for damages because three months is considered too long for “as soon as possible”
183. A owes B P10,000 payable on June 30, 2015 and as a security A pledged his ring to B. Necessarily, 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.
b.
c.
d.
A’s obligation to B is extinguished
A’s obligation to B is not extinguished
The contract of pledge is extinguished
The contract of pledge is extinguished but not the principal obligation
184. I. An example of an obligation with a period is when A promises to pay B P10,000 one month from the
death of C.
II. A person is obliged to deliver a determinate thing including its accessories and accessions provided
they have been mentioned in the agreement.
a. True, true
b. True, false
c. False, true
d. False, false
185. I. When the fulfillment of the suspensive or resolutory condition depends upon the sole will of the debtor,
the conditional obligation shall be void.
II. If the debt produces interest, payment of the interest shall not be deemed to have been made until the
principal have been covered or paid.
a. True, true
b. True, false
c. False, true
d. False, false
186. I. Condonation or remission is generally gratuitous
II. Proof of actual damages suffered by the creditor is not necessary in order that the penalty in an
obligation with a penal clause may be demanded.
a. True, true
b. True, false
c. False, true
d. False, false
187. I. In delagacion, the insolvency of the new debtor will not revive the original debtor’s obligation.
II. In expromission, the insolvency of the new debtor may at times revive the original debtor’s obligation
a. True, true
188. I.
II.
b. True, false
c. False, true
d. False, false
A solidary creditor cannot assign his rights without the consent of the other creditors.
Payment of the debtor’s obligation may be made by a third person even without the knowledge and
consent of the debtor.
a. True, true
b. True, false
c. False, true
d. False, false
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189. I. Solidarity may exist although the debtors and the creditors may not be bound in the same manner and
the same periods and conditions
II.
A solidary debtor is always entitled to reimbursement from his co-debtors if he pays for their
obligations.
a. True, true
b. True, false
c. False, true
d. False, false
190. I. Payment made in good faith to any person in possession of the credit shall extinguish the debtors
obligation.
II. When the debtor is guilty of fraud in the fulfillment of an obligation, a creditor can demand payment of
damages and interest in addition to the penalty.
a. True, true
b. True, false
c. False, true
d. False, false
191. A obliges himself to give B a specific car on Jan. 7, 2015. On Jan 2, 2015, C burned the car which A
promised to deliver to B, which is correct?
a. A’s obligation to B is converted to monetary obligation
b. A should file an action against C for the value of the car plus damages
c. B can file an action against A for the value of the car plus damages
d. B can file an action against C for the value of the car plus damages
192. A owes B P10,000 due on Jan. 7, 2016 and guaranteed by C. B owes A P8,000 due on Jan. 7, 2016. On
the due date, A is insolvent. How much is C’s liability?
a. P10,000
b. P8,000
c. P2,000
d. Zero
193. A deposited with B 100 cavans of palay valued at P10,000. A 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?
a. Yes, both obligations are due
b. Yes, considering that the value of the palay is equal to the amount of A’s obligation
c. No, because there was no stipulation allowing compensation
d. No, because B’s obligation arose from a contract of deposit
194. In tender of payment and consignation, if after consignation is made, the creditor allows the debtor to
withdraw the thing deposited in court, which of the following statements is not correct?
a. Guarantors are released from the obligation unless they consented
b. Sureties are released from the obligation unless they consented
c. The obligation is not extinguished
d. The obligation is extinguished
195. A owes B P100,000 payable on or before June 20, 2014 while B owes A P100,000 payable on or before
June 30, 2014 B can set up compensation on June 20, 2011 and this is called
a. Legal
c. Judicial or “set off”
b. Partial
d. Facultative
196. Which of the following is an obligation with a period for the benefit of the debtor?
a. An obligation payable little by little
b. An obligation payable when the debtor’s means permit him to do so
c. An obligation payable within 10 months on demand
d. An obligation payable on or before Dec. 31, 2014
197. Proof of pecuniary loss is necessary for the award of
a. Moral damages
b. Actual damages
c. Exemplary damages d. Temperate damages
198. The indemnity which the law gives to the injured party for the breach of a contract is
a. Damages
b. Damage
c. Injury d. Loss
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199. The loss suffered by one person on his property is
a. Damages
b. Damage
c. Injury d. Depreciation
200. Not a requisite of cession in payment
a. One debtor and one creditor
b. Complete or partial insolvency
c. More than one debt
d. Abandonment of all debtor’s property not exempt from execution
201. If the obligation is payable in foreign currency, which is correct?
a. The obligation is void
b. The obligation is valid, but the stipulation is void
c. The creditor can compel the debtor to pay in foreign currency as per agreement
d. The stipulation and the obligation are void
202. Who is liable for the loss of the subject matter by fortuitous event?
a.
Creditor b. Debtor
c. Both of them
d. None of them
203. I’ll give you my car one year after X dies. The obligation is
a. Valid, because death is sure to come.
b. Valid, but the condition will be disregarded
c. Void, then time when death will occur is not certain
d. Void, killing a person is contrary to law
204. Whoever pays for another without the knowledge or against the will of the debtor
a. May demand from the debtor what he has paid
b. May not recover anything from the debtor
c. May recover only insofar as the payment has been beneficial to the debtor
d. May recover from the debtor what he has paid plus damages
205. A owes B P10,000. Later A paid B P7,000 leaving a balance of P3,000. C, a suitor of A and intending to
surprise A, paid B the sum of P10,000 thinking that A still owed B that amount. C did this without
knowledge of A. Which is correct?
a. C can recover P10,000 from A
b. C cannot recover anything from A
c. C can recover P10,000 from B
d. C can recover P3,000 from A
206. The act of putting somebody onto the shoes of the creditor enabling him to exercise all the rights and
actions that could have been exercised by the latter.
a. Agency
b. Partnership
c. Subrogation
d. Novation
207. A borrowed P10,000 from B. The loan was secured by a mortgage of A’s land in favor of B. Without the
knowledge of A, C paid the sum of P10,000 for A’s debt. A benefited to the amount of P10,000. Which
is not correct?
a. C can recover the whole amount of P10,000 from A
b. If A cannot pay, C cannot foreclose the mortgage inasmuch as C paid without the knowledge of A
c. C may either demand recovery of P10,000 from A or to foreclose the mortgage
d. If C did not pay, the original creditor B has the right to foreclose in case of non-payment by A
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208. A has in his possession some merchandise to be delivered to the person who presents the proper receipt. B
and C each armed with a receipt, ask A to turn over the property to one of them. An examination of the
receipts reveals that they are exactly of the same kind. A does not know to whom he should deliver the
property. So he files an action in court by means of which B and C will be able to settle their conflicting
rights. This is
a. An interpleader
b. An injunction
c. A garnishment
d. A consignation
209. When is there no loss of the thing due?
a. When the object perishes
b. When it goes out of commerce
c. When it is in possession of another person
d. When it disappears in such a way that its existence is unknown or it cannot be recovered
210. The expenses of consignation when properly made, shall be charged against the
a. Debtor
b. Creditor
c. Third person
d. Debtor and creditor
211. The designation of the debt to which should be applied a payment made by a debtor who owes several
debts in favor of the same creditor
a. Dation in payment
b.Application of payment
c. Tender of payment
d. Payment by cession
212. A is the owner of shares of stock of ABC Bank amounting to P100,000. Later, A borrowed money from the
bank amounting to P90,000 with interest thereon at 6% per annum. The debt was to be paid in installment.
One of the conditions of the debt contract is that in case of the debtor’s default in the payment of any of
the installments as they become due, the entire amount or the unpaid balance thereof will become due and
payable on demand. The defendant A defaulted in the payment of several installments and plaintiff bank
brought this action to recover the unpaid balances. A pleaded compensation. Which is correct?
a. A is allowed to avail of compensation
b. There can be no compensation because A and ABC are not debtors and creditors of each other
c. Compensation is allowed only up to P90,000 plus interest
d. Compensation is allowed only up to P90,000 without interest
213. There is compensation
a. 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
b. A, debtor of two partners is a creditor of the partnership
c. A owes B P10,000 payable May 31, 2010. B owes A P10,000 payable on June 30, 2010. If
today is May 31, 2010
d. A owes B a fountain pen and B owes A also a fountain pen. Both debts are due
214. A owes B P1,000. B in turn owes A P200. Both debts are already due. Later B assigns the P1,000 credit
to C, without the knowledge of A. The assignment was made on June 3. On June 10, a P250 debt of B
in favor of A matured. A learned of the assignment on July 1. On July 10, a P150 debt of B in favor of A
matured. Later C asks A to pay his debt. How much can C successfully collect from A?
a. P1,000
b. P800
c. P550
d. P400
215. A owes B P10,000. When the debt matured B told A that she need not pay the debt since B is condoning
it. A in turn expressed her gratitude. The debt has been extinguished by
a. Novation
b. Compensation
c. Remission
d. Confusion
216. Using the preceding number, if A rejected the offer of B, and B did not collect within the statute of
limitation (period to collect) the debt may be said to have been extinguished by
a. Remission
b. Compensation
c. Prescription
d. Annulment
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217. A makes a check payable to bearer and gives the check to C, who gives it to D who finally gives it to A.
The obligation of A is extinguished by
a. Merger b. Compensation
c. Novation
d.Prescription
218. A owes B P10,000. C, a friend of A approaches B and tells him “ I will pay you what A owes you. From
now on consider me your debtor, not A. A is to be excused. If B agrees, there is
a. Novation
b. Subrogation
c. Delegacion
d. Expromission
219. The substitution or change of an obligation by another, which extinguishes or modifies the first, either
changing its object or principal condition or substituting another in the place of the debtor, or subrogating
a third person in the rights of the creditor
a. Compensation
b. Merger c. Prescription
d. Novation
220. A method of novation caused by the replacement of the old debtor by a new debtor, where the old debtor
has proposed to the creditor and which replacement has been agreed to by said creditor and by said new
debtor is
a. Novation
b. Delegacion
c. Expromission
d. Quantum meruit
221. A owes B P10,000. A proposed to B that C will pay A’s debt and that A will be released from all
liabilities. B and C agreed to the proposal. Later, when B tries to collect from C, he finds out that C is
insolvent. It was proved that at the time of delegacion, C was already insolvent but this was not known to
A, neither was the insolvency of public knowledge. Is A still liable?
a. Yes, because there is delegacion
b. No, because there is delegacion
c. Yes, because the initiative came from A
d. No, because the insolvency was neither of public knowledge nor known to A at the time he
delegated his debt
222. A and B entered into a contract whereby A was to give B P200,000. Later they novated the contract by
stipulating that instead of cash A would give a particular car. Subsequently the car was destroyed by a
fortuitous event. Which is correct?
a . Novation is not allowed because the things due are not of the same kind
b. A is liable to pay P200,000, the amount of the old obligation
c. The original obligation is extinguished but not the obligation to deliver the car
d. The original obligation and the obligation to deliver the car are both extinguished
223. A, B and C executed a promissory note worded as follows: “We promise to pay to X, Y and Z the sum of
P90,000. Sgd. A, B, and C. Which is correct?
a. A is obliged to pay to X, Y and Z P90,000
b. A is obliged to pay to X P60,000
c. A is obliged o pay to Y P30,000
d. A is obliged to pay to Z P10,000
224. A obliged himself to give B a specific car on June 12, 2015 stipulating that A is liable even if the thing is
lost due to fortuitous event and without the need of a demand. On due date, the car got lost due to
fortuitous event. Which is correct ?
a. Obligation is extinguished due to fortuitous event
b. B can compel A to deliver another car
c. B can require another person to deliver a car with expenses chargeable to A
d. Obligation is not extinguished but converted into monetary consideration
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225. A, B and C obliged themselves solidarily to give D a specific car valued at P240,000. On due date, D
demanded delivery but the debtors failed to deliver. The next day, while A was still in possession of the
car, it was lost due to a fortuitous event. The right of D is
a. To proceed against any of the debtors for the value of the car plus damages
b. To proceed against A only because the car was lost while in his possession
c. None, because the obligation is extinguished due to a fortuitous event
d. To proceed against B and C because they were not in possession of the car
when it was lost due to a fortuitous event
226. The transfer to a third person of all the rights appertaining to the creditor including the right to proceed
against guarantors, or possession of mortgages, subject to any legal provision or modification that may be
agreed upon
a. Novation b. Delegacion c. Expromission
d. Subrogation
227. A owes B P10,000. With the consent of A and B, C pays B P5,000. Now B and C are the creditors of A to
the amount of P5,000 each. Suppose, A has only P5,000. Which is correct?
a. B should be preferred
b. C should be preferred
c. B and C should be paid pro-rata
d. A may choose whom to pay
The End!!
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