Identify The Choice That Best Completes The Statement or Answers The Question
Identify The Choice That Best Completes The Statement or Answers The Question
Identify The Choice That Best Completes The Statement or Answers The Question
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 2. D is indebted to solidary creditors X, Y, and Z for P30,000. Without the knowledge of X and Y, Z remitted or renounced
the obligation of D.
a. The obligation of D is not extinguished.
b. The obligation of D is extiguished to the extent of P20,000.
c. The obligation of D is extinguished to the extent of P10,000.
d. The obligation to pay P30,000 is extinguished, but X and Y may proceed against Z for their share.
e. None of the above.
____ 3. A, B, C, and D, solidary debtors, are obliged to give, V, W, X, Y, and Z, joint creditors, P20,000.
a. V may collect from C P20,000.
b. V may collect from C P4,000.
c. V may collect from C P5,000.
d. V may collect from C P1,000.
____ 4. A, B, C, and D, joint debtors, are obliged to give V, W, X, Y, and Z, solidary creditors, P 20,000.
a. V may collect from B P20,000.
b. V may collect from B P4,000.
c. V may collect from B P5,000.
d. V may collect from B P1,000.
____ 5. A, a minor, and B a capable person, bind themselves solidarily to pay X the sum of P10,000
a. A may be compelled to pay P10,000
b. A may be compelled to pay P5,000 only
c. B may be compelled to pay P10,000
d. B may be compelled to P5,000 only
____ 6. The creditor is entitled to recover damages and interest in addition to the penalty stipulated:
a. When the parties so agreed
b. When the debtor refuses to pay the penalty
c. When the debtor is guilty of fraud in the fulfillment of the obligation
d. All of the above
____ 7. One of the disitnctions between a facultative obligation and an alternative obligation is that in an alternative obligation is
that in an alternative obligation:
a. Only one thing is principally due.
b. The right of the choice belongs to the debtor alone.
c. If the obligation is give a principal thing is void, the obligation to give the substitute is also void.
d. If all prestations except one are impossible, that which is possible must still be given.
____ 10. D obliged to give C, either object No. 1 valued at P15,000; or object No. 2 valued at P10,000; or object No. 3 valued at
P5,000. All the objects were lost due to D’s fault in the following order stated.
a. D’s obligation is extinguished
b. D’s obligation is to pay the value of object No. 1 plus damages
c. C’s right is to demand the value of any of the object plus damages
d. None of the above
____ 11. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-debtors
a. if such payment was made before the obligation is due.
b. if such payment was made after the obligation has prescribed or become illegal.
c. if such payment was made in compliance with the demand made to him by all the creditors.
d. if such payment was made after the obligation has become due and demandable and notice of pay-
ment was made only to him.
____ 12. Fruits as resulting from spontaneous products of the soil without the intervention of human labor, as well as animal off-
spring are:
a. industrial fruits c. natural fruits
b. civil fruits d. all of the above
____ 13. In an obligation worded as follows: “I promise to continue allowing X to stay in my condo unit until he marries,” the
obligation is subject to:
a. suspensive condition c. resolutory condition
b. suspensive period d. resolutory period
____ 14. Effect of the loss of the thing in a facultative obligation. Which is incorrect?
a. Before subsitution: if the principal thing is lost due to fortuitous event, there is no more obligation.
b. Before subsitution: if the substitute thing is lost due to debtor’s fault, there is no more obligation.
c. After substitution: if the principal thing is lost, the debtor is no longer liable even if it was lost due
to his fault.
d. None of the above
____ 15. In obligations with a penal clause, the creditor as a rule may recover from the debtor in case of breach the following:
a. the penalty as agreed upon, plus damages and interest.
b. the penalty and damages.
c. the penalty and interest.
d. only the penalty.
____ 16. The buyer has the right to the fruit of the thing from:
a. the time the thing is delivered.
b. the time the contract is perfected.
c. the time the obligation to deliver the thing arises.
d. the time the fruits are delivered.
e. none of the above
____ 17. The delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of perfor-
mance is known as:
a. payment by cession c. application of payment
b. dation in payment d. consignation
____ 18. In tender and consignation: if after consignation is made, the creditor allow the debtor to withdraw the thing deposited in
court, which of the following statements is incorrect?
a. Co-debtors, guarantors, and sureties are released from the obligation unless they consented
b. The obligation remains to subsist
c. The obligation is extinguished
d. None of the above
____ 19. Wrong committed independent of contract and with criminal intent is
a. Culpa contractual c. Quasi-contract
b. Culpa aquilliana d. None of the above
____ 20. “Conrado will continue giving Pedro the latter’s meal allowance until the end of this year,” is an obligation subject to
a. a resolutory period
b. a suspensive condition
c. a resolutory condition
d. a suspensive period
____ 22. Amazed by the skill of X who can paint portraits using a paint brushes in his right armpit, Y entered unto a contract with
the former to have his own portrait done and gave X P50,000 as full payment therefor. After he has started painting the
portrait but before its completion, X was sideswiped by a speeding car while he was drunk and walking beside the rail-
way causing the doctors to have his right arm amputated. In this case, what is the remedy of Y?
a. Nothing, as the service became impossible by reason of an act independent of the will of the debtor.
b. Equivalent performance in terms of damages.
c. Specific performance by compelling X to go on painting Y’s portrait.
d. Substitute performance by allowing a third person to do his portrait with expenses therefor charged
to X.
____ 23. B and C promise to deliver a particular car valued at P100,000 to M on or before September 15, 1997. On September 15,
1997, M demanded delivery from B and C. B was willing to deliver but C refused to deliver. In the case at bar
a. An action for specific performance will lie against both B and C
b. Both B and C shall be liable for P50,000 each with damages
c. B shall be liable for P50,000 without damages and C shall be liable for P50,000 and damages.
d. None of the above
____ 24. The offer made by the debtor to pay his obligation to his creditor is known as:
a. consignation c. application of payment
b. tender of payment d. dation in payment
____ 25. A, B, and C are solidary debtors of X in the amount of P9,000. Subsquently, X renounced the share of A. A accepted the
renunciation of his share. On due date, B paid X P6,000. B demanded reimbursement from C but C is insolvent. In this
case:
a. B may demand the payment of P3,000 from A.
b. B may not demand any payment because the share of A has already been renounced or condoned.
c. B may demand P1,500 from A representing A’s share in C’s insolvency.
d. B may demand from A P4,500 so that their sharing in the total debt is equal.
____ 26. A and B are jointly and severally liable to C for P20,000. A is a minor.
a. C can collect P20,000 from B.
b. C can collect P10,000 from A, that is the share of B.
c. C can collect P20,000 because minority is not a defense.
d. C can collect P10,000 from B.
____ 27. XYZ is a cooperative store. On July 1, 2000, 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. solutio indebiti
c. quasi-delict
d. law
____ 28. Consignation alone, as a special form of payment, may extinguish an obligation under any of the following instances.
Which is the exception?
a. When the creditor is absent, or is unknown or does not appear in place of payment.
b. When the creditor is capacitated to receive payment.
c. When the creditor refuses to issue receipts.
d. When there are two or more persons claiming title to one and the same obligation.
e. When title to the same obligation has been lost.
____ 30. I. D obliged himself to give C a specific car tomorrow. If D failed to deliver tomorrow after demand is made, C may
compel D to do his obligation and may ask for damages.
II. D obliged himself to deliver a car to C tomorrow. If D failed to deliver tomorrow after demand is made, C’s right is to
ask a third person to deliver a car to him at the expense of D plus damage.
____ 32. The following, except one, are requisites of payment as a mode of extinguishing an ordinary obligation. Which is the ex-
ception?
a. complete or full payment
b. payment in due course when the obligation is due and demandable
c. payment using negotiable instrument
d. payment using legal tender, except if payable in foreign currency
____ 33. A, B, and C excuted 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.”
a. A is obliged to pay to X, Y, and Z P90,000.
b. A is obliged to pay to X P30,000.
c. A is obliged to pay to X P60,000.
d. A is obliged to pay to X P10,000.
e. None of the above.
____ 37. The following, except one, are secondary modes of extinguishing obligations. Which is that exception?
a. death of both parties
b. Prescription
c. Compromise
d. changing the object of the obligation with the consent of the parties
____ 38. Which of the following is not a ground for the extinguishment of an obligation?
a. Remission
b. Merger
c. Compensation
d. Death of either debtor or creditor
e. None of the above
____ 40. D borrowed P5,000 from C. The obligation is payable in full after 30 days. In which of the following cases is D justified
in making a consignation of his payment in court?
a. If C refuses to accept the payment in the form of a check which is certified by the bank to be sup-
ported by sufficient funds.
b. If C refuses to accept the payment consisting of 5,000 pieces of P1.00 coins.
c. If C refuses to accept the first installment payment in the form of a P1,000 bill, D promising to pay
the balance of the debt in 4 equal monthly installments.
d. If C refuses to accept the payment consisting of 500 pieces of P10.00 bills.
____ 41. I. The receipt of the principal obligation without reservation as to the payment of interest shall raise a conclusive pre-
sumption that the interest is also paid.
II. The receipt of the latter installment of a debt without reservation as to prior installment, shall not raise a conclusive
presumption that the prior installment is also paid.
a. Both are true.
b. Both are false.
c. I is true, II is false.
d. I is false, II is true.
____ 42. A, 25, B, 35, and C, 17, are solidary debtors of X in the amount of P9,000.
a. X may collect from A P9,000.
b. X may collect from A P6,000.
c. X may collect from A P1,000.
d. X may collect nothing because the obligation is voidable, C being a minor.
____ 45. I. In solution indebiti, the contract of the parties is the basis for damages in case of non-performance.
II. “Dolo”, as a ground for awarding damages, is the deliberate intention to cause damage or injury to another person.
a. Both are true.
b. Both are false.
c. I is true, II is false.
d. I is false, II is true.
____ 47. S sold to B a specific car for P10,000 and promised to deliver on December 25, 2003. The next day, afer the sale is made,
he sold the same car to X and delivered it to X on the same day. If no delivery is made by S to B on December 26, 2003,
which of the following is correct?
a. S is not in default because there was no demand.
b. B can cancel the contract between S and X because the contract of S and B was perfected ahead of
X.
c. S is liable to B for the value of the car plus damages.
d. S is in default, even if there was no demand. Hence, he will answer for damages.
____ 48. Proof of pecuniary loss is necessary for the award of:
a. Liquidated damages
b. Exemplary damages
c. Actual damages
d. Temperate damages
e. None of the above
____ 49. I. Responsibility arising from fraud is demandabkle in all obligations. Any waiver of an action for future fraud is void.
II. When the fulfillment of the condition depends upon the sole will of the debtor, the conditional obligation shall be
void. If it depends upon chance or upon the will of a third person, the obligation shall take effect in conformity with the
provisions of the law.
a. Both statements are true.
b. Both statements are false.
c. I is false, II is true.
d. I is true, II is false.
____ 50. A and B are jointly indebted to C for P1,000. C assigns the credit to D and D assigns it back to A.
a. The debt is partially extinguished by compensation
b. The debt is partially extinguished by merger
c. The debt is totally extinguished by merger
d. The debt is not extinguished either totally or partially
____ 51. Which of the following obligations is a pure obligation and is demandable at once?
a. D to allow C to use D’s car until December 31, 2003.
b. D to allow C to use D’s car until C finishes his course in Accounting.
c. D to give his car. No mention is made when D shall give the car.
d. D to give C a car if C finishes his course in Accounting.
____ 52. “I will give you my car one year after your death.” The obligation is
a. valid, because the event is sure to come.
b. valid, the obligation is conditional.
c. valid, but disregard the condition.
d. void, not legally possible.
____ 54. A owes B P100,000 due on December 12, 1997. A mortgaged his house to B as guaranty for the debt. Shortly, however,
the mortgaged house was completely destroyed by typhoon “Nitang”. Thereafter, B demanded payment from A on Octo-
ber 28, 1997. Is B’s demand valid?
a. No. The obligation is one with a definite period, thus the creditor cannot demand fulfillment of the
obligation as such would be prejudicial to the rights of the debtor.
b. No. The obligation is extinguished because the object of the obligation is lost through a fortuitous
event.
c. Yes. The debt becomes due at once because the guaranty was lost even through a fortuitous event,
unless the debtor can mortgage another property that is equally satisfactory.
d. Yes. The debt becomes due at once because from the tenor of the obligation, the period established
is for the benefit of the creditor solely thereby giving the creditor the right to demand performance
even before the date stipulated.
____ 55. D1, D2, and D3 are solidary debtors of C for P30,000. The obligation was in writing. After the lapse of the ten-year pre-
scriptive period, which of the following statements is incorrect?
a. If D1 paid C knowing that the obligation has already prescribed, D1 cannot ask reimbursement
from D2 and D3.
b. If D1 paid C not knowing that the obligation has already prescribed, D1 cannot ask reimbursement
from D2 and D3.
c. If D1 paid C not knowing that the obligation has already prescribed, his right is to proceed against
C because there was undue payment.
d. None of the above.
____ 56. I. Just before the obligation became due and demandable, the debtor proposed to the creditor that he would give him a
specific car instead of paying P150,000, and which proposal was accepted by the creditor. Here, there is extinguishment
of an obligation by way of dacion en pago.
II. After substitution in facultative obligations, the loss of the principal through the fault or negligence of the debtor shall
render him liable for damages in favor of the creditor.
a. Both are true c. I is true, II is false
b. Both are false d. I is false, II is true
____ 57. Debtor obliged himself to deliver to creditor 100 cavans of rice on June 1, 2001. On said date, D failed to make delivery
despite repeated demands by C. In this case:
a. C has no remedy under the law.
b. C can compel D to deliver 100 cavans of rice plus damages
c. C may ask a third person to deliver 100 cavans of rice to him, the value recoverable from D plus
damages
d. None of the above
____ 58. The delay on the part of the creditor to accept performance of an obligation:
a. Dolo incidente c. Dolo causante
b. Mora accipiendi d. Mora solvendi
____ 59. A is obliged to give B his only car on September 1, 1997. On the said date, A did not deliver. On September 2, 1997, an
earthquake completely destroyed the car. Is A still liable?
a. No. Considering that no demand to deliver was made by B and the specific thing was lost due to
fortuitous event, the obligation is extinguished.
b. No. The obligation is extinguished, even if the debtor is already in default because the debtor can
plead impossibility of performance.
c. Yes. A is already in legal delay, thus the obligation to deliver the lost specific thing into monetary
claim for damages.
d. Yes. The creditor can instead demand for a substitute of equivalent value from the debtor.
____ 60. D stole the carabao of C. D was arrested, tried in court and convicted. Aside from being sentenced to a prison term, D
was also ordered by the court to return the carabao. However, the carabao died before D could deliver it to C.
a. D is not liable to C if the cause of the death of the carabao is a fortuitous event.
b. D is liable to C only if the carabao died because of D’s fault.
c. D is liable to C whatever may be the cause of the death of the carabao.
d. D has no liability to C whatever may be the cause of the death of the carabao because his obligation
to return the carabao was due to an order of the court and not on his own volition.
____ 62. Extinguishes the obligation upon the happening of the condition:
a. Resolutory c. Pure
b. Suspensive d. None of the above
____ 64. P took a public bus in going to his office. Although P paid his fare, the bus conductor did not issue to 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 because no ticket was issued
____ 65. An obligation where only one prestation is due, with no period or condition needed is called:
a. pure or simple obligation
b. conjoint obligation
c. alternative obligation
d. none of the above
____ 66. In a solidary obligation, D1 and D2 bind themselves to give C1 and C2 P10,000. Which of the following statements is
false?
a. C1 cannot renounce the obligation of D1 and D2 to pay P10,000 because the act is prejudicial to the
other
b. C1 cannot renounce the obligation of D1 and D2 to pay P10,000 but C1 must give C2 P5,000
c. If C1 and C2 will renounce the obligation in favor of D1 is to ask P5,000 from D2 representing the
share of the latter
d. D1 and D2 can pay anyone of the creditors and if accepted the obligation is totally extinguished
____ 67. The debtor shall lose every right to make use of the period except:
a. When he does not furnish a guaranty or security to the creditor
b. When after the obligation has been consituted he becomes insolvent, unless he gives a guaranty or
security for the debts
c. When the debtor attempts to abscond
d. When the debtor violates any undertaking in considerations of which the creditor agreed to the pe-
riod.
____ 68. Solidary debtors A, B, and C owes joint creditors X, Y, Z, and W P12,000. X, Y, and Z can collect from A
a. P 12,000 c. P 9,000
b. P 6,000 d. P 3,000
____ 69. Consignation alone without any tender of payment is sufficient in the following cases, except:
a. when the creditor is absent or unknown or does not appear at the place of payment.
b. when the creditor presents the title to the obligation for collection.
c. when without just cause, the creditor refuses to give a receipt.
d. when two or more persons claim the same right to collect.
____ 70. A sold his cow to B for P2,500. No date was stipulated for the delivery of the cow. While still in possession of A, the
cow gave birth to a calf.
a. A is entitled to the calf because it was born before his obligation to deliver the cow arises.
b. A is entitled to the calf as B has not paid the price.
c. B is entitled to the calf which was born after the perfection of the contract.
d. B, in order to be entitled to the calf, should pay additional cost for the calf to be agreed upon by
both parties.
____ 71. The money or currency which the debtor may compel the creditor to accept in payment of a debt, whether public or pri-
vate, is known as:
a. notes payable to order c. bill of exchange
b. legal tender d. mercantile document
____ 73. No person shall be responsible for events which could not be foreseen, or which, though foreseen, were inevitable, EX-
CEPT:
a. When debtor is guilty of delay
b. When the nature of the obligation requires the assumption of risk
c. When the law expressly provides for the debtor’s liability even in cases of fortuitous events
d. When the subject matter of the obligation is a generic thing.
e. All of the above.
____ 74. D owes C who has two (2) legitimate emancipated children, P50,000 payable on December 31, 1997.
a. If D dies before December 31, 1997, C cannot collect from the heirs of D.
b. If D dies before December 31, 1997, C can collect from the heirs of D.
c. If C dies, his two (2) legitimate emancipated children cannot collect from D his obligation.
d. If both D and C die, the heirs of C can collect from the heirs of D.
____ 75. Proof of pecuniary loss is not necessary for the award of:
a. Moral damages
b. Nominal damages
c. Temperate damages
d. Exemplary damages
e. All of the above
____ 76. A, B, and C are joint debtors of joint creditors W, X, Y, and Z in the amount of P300,000. How much can W and X col-
lect from B?
a. P 75,000 c. P 150,000
b. P 100,000 d. None of the above
____ 77. D owes C the following debts: P6,000 due on June 12; P6,000 due on June 15; P6,000 due on June 18; and P6,000 due
on June 20. All debts are unsecured except the debt due on June 20 which is secured by a pledge of D’s diamond ring to
C. By agreement, the benefit of the term on the 4 debts was made in favor of C. Assuming that D has P6,000 on June 18
and is ready to pay C, which of the following statements is correct?
a. D may apply his payment of P6,000 to any of the debts due on June 12, June 15, and June 18 since
they are all due as of June 18.
b. D may apply it only to the debt due on June 20 because it is the most burdensome to him.
c. D must apply the payment proportonately to the debts due as of June 18 at P2,000 each.
d. D may apply the payment to any of the four debts.
____ 78. Alternative obligation and facultative obligation are similar in which of the following respects?
a. The right of choice may be given either to the debtor or creditor.
b. Several prestations are due.
c. Only one prestation is due but the debtor may render another in substitution.
d. The obligation becomes a simple obligation once the choice of the prestation is made and commu-
nicated.
____ 79. The act of abandoning all his properties in favor of his creditors so that the latter may cause their sale and apply the pro-
ceeds thereof to their claims proportionately is called:
a. dacion en pago c. payment by cession
b. set off d. tender of payment
____ 80. In delicts and quasi-delicts, the defendant shall be liable for:
a. Damages which are natural and probable consequences of the act or omission complained of
whether or not such damages have been foreseen or could have reasonably been foreseen by the of-
fender.
b. Not only for results intended but also to their foreseen consequences.
c. Damages which may be be renounced in advanced.
d. Damages intended but excluding exemplary damages.
Law on Obligations and Contracts - Midterm Exams
Answer Section
MULTIPLE CHOICE
1. ANS: A PTS: 1
2. ANS: D PTS: 1
3. ANS: B PTS: 1
4. ANS: C PTS: 1
5. ANS: D PTS: 1
6. ANS: D PTS: 1
7. ANS: D PTS: 1
8. ANS: D PTS: 1
9. ANS: A PTS: 1