Law on Obligations and Contracts

1. 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

2. A juridical necessity to give, to do or not to do

A. Civil obligation
B. Natural obligation
C. Moral obligation
D. Social obligation

3. They give a right of action to compel their performance

A. Civil obligation
B. Moral obligation
C. Natural obligation
D. Social obligation

4. 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

5. This is based on equity and justice

A. Civil obligation
B. Moral obligation
C. Natural obligation
D. Social obligation

6. The person in whose favor the obligation is constituted

A. Obligor
B. Obligee
C. Passive subject
D. Debtor
 7. The object or subject matter of the obligation

A. Prestation
B. Vinculum
C. Active Subject
D. Passive subject

8. The efficient cause or juridical tie why the obligation exists

A. Active subject
B. Passive subject
C. Prestation
D. Vinculum

9. 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

10. The following are sources of obligations derived from law, except

A. contracts
B. quasi-contracts
C. delicts
D. quasi-delicts

11. The following are the requisites of an obligation, except

A. Passive and active subject

B. Prestation
C. Efficient cause
D. Demand

12. 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
 13. Specific performance may not be possible in this civil obligation

A. A, a painter, obliges himself to paint the portrait of B on April 9, 2009

B. C, a farmer, obliges himself to give his only cow to D on February 14, 2009
C. E, a veterinarian, obliges himself to give one of his dogs to F on May 1, 2009
D. G, a registrar of deeds, obliges himself to effect registration of H’s parcel of land on
February 28, 2009.

14. Which of the following is a civil obligation?

A. X obliges himself to pay Y P10,000 on October 30, 2009.

B. A is a debtor of B for P20,000 due on September 30, 1995.
C. The obligation of a husband and wife to observe fidelity.
D. The obligation of a catholic to hear mass every Sunday.

15. Cannot be enforced by court action and depend exclusively upon the good conscience of the
debtor.

A. civil obligation
B. natural obligation
C. moral obligation
D. social obligation

16. XYZ is a cooperative store. On July 1, 2010, it paid the Government of the City of Manila certain
taxes believing that it owed the same. After six months, XYZ learned that it was not subject to
the said taxes. Accordingly, it sought to recover the said taxes it previously paid. The obligation
of the Government of the City of Manila to return the said taxes paid is based on

A. Negotiorum gestio
B. Solution indebiti
C. Quasi delict
D. The Government is exempt from giving tax refunds

17. D is obliged to give C a specific car if C passes the CPA Licensure Examination. D’s obligation is
an example of
A. A pure obligation
B. An obligation with a suspensive condition
C. An obligation with a resolutory condition
D. An obligation with a period
 18. The duty to pay taxes and support one’s family are obligations arising from

A. Law
B. Contracts
C. Quasi-contracts
D. Delicts

19. One of the following obligations is not immediately demandable

A. Pure obligation
B. Obligation with a resolutory period
C. Obligation with an in diem period
D. Obligation with an ex die period

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

A. The debtor
B. The creditor
C. Both the debtor and the creditor
D. Neither of the parties

21. The debtor shall lose the right to make use of the period in the following cases, except when he

A. Becomes insolvent
B. Violates any undertaking in consideration of which the creditor agreed to the period
C. Attempts to abscond
D. Does not furnish any guaranty or security to the creditor

22. D is obliged to give C P10 000 if X dies. This is an example of

A. An obligation with a suspensive period

B. An obligation with a resolutory period
C. An obligation with a period
D. A pure obligation
 23. Whenever a period is designated in an obligation, the said period shall be presumed to have
been established for the benefit of

A. The debtor
B. The creditor
C. Both the debtor and the creditor
D. Neither of the parties

24. When the debtor binds himself to pay when his means permit him to do so, the obligation is

A. An obligation with a resolutory period

B. A pure obligation
C. An obligation with a suspensive condition
D. An obligation with a suspensive period

25. The obligation of husband and wife to render mutual help and support arises from

A. Contract
B. Law
C. Quasi-contract
D. Quasi-delict

26. 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. contracts
B. quasi-contracts
C. delicts
D. quasi-delicts

27. 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. Delicts
D. Quasi-delicts
 28. 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

29. Tort or culpa aquiliana is

A. Quasi-contract
B. Quasi-delict
C. Negotiorum gestio
D. Solutio indebiti

30. 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

31. Refer to the preceding number. In the contract between S and T

A. S is the obligor and T is the obligee

B. S is the obligee and T is the obligor
C. Both S and T are obligors and obligees of each other
D. The Dampa market is the obligee of both S and T

32. S, a supplier of fresh fish from Lucena City hired T, the owner of a trucking company, for a fee of
P3 000 to bring the fish of S to the Dampa Market in Paranaque City which ordered the fish for a
price of P20 000. In so far as S is concerned, his prestation in his contract with T is

A. The sale of the fish

B. The transport of the fish
C. The payment of P3 000
D. The payment of P20 000
 33. P took a public bus in going to his office. Although P paid his fare, the bus did not issue him a
ticket. Along the way, the bus met an accident causing a slight injury to P and other passengers.
If P is to recover damages from the bus owner, the source of the bus owner’s liability is

A. Contract
B. Quasi delict
C. Law
D. P cannot recover any amount because no ticket was issued

34. Demand must be made on the due date of the obligation in order for delay to exist in one of the
following cases. Which is it?

A. When it was stipulated by the parties that demand need not be made
B. When the law provides that demand need not be made
C. When the obligation does not indicate whether demand must e made or not on due date
D. When the time is of the essence

35. When the following statements concerning delay is incorrect?

A. There is no delay in obligations not to do

B. Delay, as a rule, exists, when the debtor does not perform his obligation on the date that it is due
C. Demand, as a rule, is required in order for delay to exist
D. When time is of the essence, delay on the part of the debtor exists despite the absence of
demands

36. Which of the following is not a proper remedy for the creditor?

A. To compel the debtor to make the delivery, if the obligation is to deliver a determinate thing
B. To ask that the obligation be complied with at the expense of the debtor, if the obligation is to
deliver a generic thing
C. To compel the debtor to perform the obligation, if the obligation is an obligation to do
D. To ask the debtor that what has been done be undone, if the obligation is an obligation not to do

37. Default on the part of the creditor

A. Mora accipiendi
B. Mora solvendi ex- re
C. Mora solvendi ex- persona
D. Compensation morae
 38. There shall be no liability for loss due to fortuitous events in which one of the following cases.
Which is it?

A. When the debtor delays

B. When the parties so stipulated that there shall be liability even in case of loss due to fortuitous
events
C. When the nature of the obligation requires the assumption of risk
D. When the obligation is to deliver a determinate thing and there was a stipulation as to the liability
of the debtor in case of loss due to fortuitous events

39. Default on the part of both parties

A. Mora accipiendi
B. Mora solvendi ex- re
C. Mora solvendi ex- persona
D. Compensation morae

40. Debtor’s default in personal obligation

A. Mora accipiendi
B. Mora solvendi ex- re
C. Mora solvendi ex- persona
D. Compensation morae

41. 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 diligence
C. Of a father of a good family
D. Observing ordinary diligence

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. 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.

44. 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

45. The creditor has the 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.

46. 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 constitotum possessorium

47. There is delivery by mere consent or pointing out of an object.

A. Traditio simbolica
B. Traditio longa-manu
C. Traditio brevi-manu
D. Traditio constitotum possessorium

48. There is delivery when the keys of a warehouse are given.

A. Traditio simbolica
B. Traditio longa-manu
C. Traditio brevi-manu
D. Traditio constitotum possessorium
 49. 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

50. The opposite of brevi-manu

A. Longa-manu
B. Simbolica
C. Constitutom possessorium
D. Quasi-tradition

51. If a thing is capable of particular designation.

A. Generic
B. Specific
C. Indeterminate
D. Indeterminable

52. 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

53. Debtor’s default in real obligation

A. Mora accipiendi
B. Mora solvendi ex- re
C. Mora solvendi ex- persona
D. Compensation morae
 54. A is obligee 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 monetary obligation

55. A wife was about to deliver a child. Her parents brought her to the hospital. Who should pay the
expenses for medical attendance?
I. The husband, because it is his duty to support his wife and support includes medical
attention
II. 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

56. From the time the fruits have been delivered, the creditor shall acquire

A. Real right
B. Personal right
C. Moral right
D. None of these

57. 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
III. 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
 58. 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

59. If a thing refers to a class, to a genus and cannot be pointed out with particularity

A. Generic
B. Specific
C. Indeterminate
D. Indeterminable

60. If a thing is capable of particular designation

A. Generic
B. Specific
C. Indeterminate
D. Indeterminable

61. Damages predetermined beforehand

A. Temperate
B. Liquidated
C. Actual
D. Moral

62. Omission of the diligence which is required by the circumstances of person, place and time

A. Ignorance
B. Negligence
C. Impotence
D. Insanity
 63. The following except one, are included in civil liability. The exception is

A. Restitution
B. Reparation
C. Indemnification
D. Starvation

64. Damages awarded to vindicate a right

A. Liquidated
B. Actual
C. Nominal
D. Exemplary

65. Damages awarded to set an example

A. Exemplary
B. Liquidated
C. Temperate
D. Moral

66. 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.

67. Products of the soil through cultivation or intervention of human labor.

A. natural
B. industrial
C. civil
D. penal
 68. The following are kinds of fruits of an obligation, except

A. natural
B. industrial
C. civil
D. penal

69. Spontaneous products of the soil and the offspring and other products of animals

A. natural
B. industrial
C. civil
D. penal

70. Fruits arising out of contracts- like rental payments.

A. natural
B. industrial
C. civil
D. penal

71. 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

72. 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.
 73. A is obliged to give B 10 kilos of sugar, which of the following is not correct?

A. B can demand that A obtain the sugar and deliver it to him.

B. B can just buy 10 kilos of sugar and charge the expense to A.
C. A can insist on just paying B damages or the monetary value of the sugar.
D. B may require another person to deliver the sugar and charge the expenses to A.

74. A borrowed money from B payable on December 10, 2008. If A failed to pay on due date,
will A be in delay?

A. Yes, because there is stipulation as regards the due date.

B. Yes, if the obligation is in writing.
C. No, because demand has not been made by B.
D. No, if A has the money to pay B.

75. A obliged himself to deliver to B the following:

1) 2008 Sing-It Yamaha Organ
2) Magalona passenger jeepney with engine No. 69 and chasis No. 88

First Statement- In case A failed to deliver the 2008 Yamaha Organ, the court may compel A
to deliver the 2008 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

76. 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
77. 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 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

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 condition, 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 the 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, 2009. If A does not deliver, and
on November 22, 2009, a typhoon destroys the car.

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.

80. 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
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 thing itself shall be restored, as a rule

A. Restitution
B. Reparation
C. Indemnification
D. Starvation

83. 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

84. 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

85. 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
 86. 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.

87. 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 the ½ from B and ½ from the carrier.
D. A can recover half-fare from B only.

88. 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 in as much as the payment was made without the
knowledge of B.
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.

89. 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

90. I – A commits the crime of theft and is asked to return 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?

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

91. 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

92. On June 24, 2009 A is obliged to give B his specific car. There was no delivery until June
30 when the garage of the car collapsed due to heavy rain and strong winds of Typhoon
Ondoy, and the car was totally destroyed. Is A still liable?

A. No, even if A was in default, he could plead impossibility of performance.]

B. Yes, because the contract is perfected.
C. No, because there was no demand by B to deliver the car.
D. Yes, the obligation to deliver the car is changed to pay the equivalent value because B is
in legal delay.

93. A promise to give B his Volvo car if B passes the CPA Board Exams. Pending the results of
the exams, the car is destroyed by a fortuitous event without any fault on the part of A, As a
result

A. The obligation of A is extinguished.

B. The obligation of A is converted into monetary obligation.
C. The obligation of A will equitably reduced.
D. A will have to give B another car of equivalent value.

94. 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. I will support you if A marries B.
95. 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.

96. 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

97. This is a valid obligation.

A. A will give B P100,000 if B will kill C.

B. A will give B P1,000,000 if B will agree to be the mistress of A.
C. A will give B P100,000 if B can make C rise from the dead.
D. A will give B P1,000 if B will not pose nude in a painting session.

98. The obligation begins only from a day certain or upon the arrival of said period.

A. Ex die
B. In diem
C. Conditional
D. With a period

99. 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

100. Using the preceding number, the right of choice, belongs

A. To the debtor
B. To the creditor
C. To both the creditor and debtor
D. To third person