OBLIGATION AND CONTRACTS FINALS

If the obligation is to give an indeterminate or generic thing, what right is available to the creditor which is not
available if the obligation is to give a determinate thing?*
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To ask that the obligation be complied with at the expense of the debtor

How is dolo causante different from dolo incidente?*

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The first is present only at the time of the birth of the obligation, while the first is present only during the performance of
the pre-existing obligation.

Taxi driver D, driving recklessly, killed pedestrian P and his

passenger Y. What is the nature of liability of D’s employer
under the Revised Penal Code?*
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Subsidiary

Ariel was injured while he was a passenger in a bus

operated by X Co. The proximate cause of the
accident was a tire blowout causing the driver to lose control of
the wheel as a result of which the bus fell into a
ditch. Can the operator now relieve itself of liability by claiming that
the real cause of the accident was a fortuitous event?*
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No, tire blowouts cannot be classified as fortuitous event per se within the meaning of the law.

If the fulfillment of the condition depends exclusively upon the

will of the debtor, the conditional obligation shall be:*
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Void

In case of an obligation subject to a suspensive condition,

what is the effect if the object of the obligation is
lost without the fault of the debtor during the pendency of
the condition?*
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The obligation is extinguished.

In case of an obligation subject to a suspensive condition,

what is the effect if the object of the obligation is
improved at the expense of the debtor during the pendency
of the condition?*
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The debtor shall have no other right than that granted to the usufructuary.

What is the effect of a fortuitous event upon the term or

period agreed upon?*
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It relieves the contracting parties from the fulfillment of their respective obligations during the pendency of the event.
In alternative obligations, who has the right to choose or
select the object to be delivered or the prestation to
be performed among those which are alternatively due?*
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As agreed by the parties

Three persons execute a promissory note promising to pay their

indebtedness to their common creditor within a stipulated
period without declaring that they are liable solidarily. Can one
of them be compelled to pay the entire obligation?*
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No, the obligation is joint.

In case of payment by cession, the ownership over the properties

to be sold belongs to:*
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The creditor

Dennis is a warehouseman. Kenneth deposits 100 kilos of rice with Dennis.

Kenneth owes Dennis 100 kilos of rice. Who can claim
compensation?*
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Only Kenneth can claim compensation.

Taxi driver D, driving recklessly, killed pedestrian P and his

passenger Y. What is/are the sources of D’s obligation?*
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Culpa criminal, culpa acquiliana and culpa contractual

Taxi driver D, driving recklessly, killed pedestrian P and his

passenger Y. If the heirs of Y sue for breach of
contract (culpa contractual), against whom can it be brought?*
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D's employer only

Suppose that the debtor executed a promissory note promising

to pay his obligation to the creditor as soon as he has
received funds derived from the sale of his property in a
certain place. The condition is:*
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Mixed

In case of an obligation subject to a suspensive condition,

what is the effect if the object of the obligation
deteriorates through the fault of the debtor during the pendency
of the condition?*
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The creditor may choose between rescission or fulfillment with indemnity for damages.
Suppose that both parties in reciprocal obligations have committed a
breach thereof, who shall be liable?*
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The first infractor, but his liability will be equitably tempered

Marivic borrowed P5,000 from Chona in February 2016. The debt is

evidenced by a promissory note executed by Marivic
wherein she promised to pay as soon as she has
money or as soon as possible. Chona has made repeated
demands upon Marivic for payment, but up to now no
payment has been made. What is Chona’s remedy?*
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Ask the court to fix the duration of the term or period.

If one of the solidary debtors pays the entire obligation, is

such debtor subrogated to all of the rights the creditor?*
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Correct answer

No, the solidary debtor can only demand reimbursement from his co-debtors.

What must be the form of payment?*

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In the currency stipulated

Which of the following is a real obligation?*

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An obligation to give a grand piano

Which of the following obligations is compellable by judicial processes?*

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Civil obligation

Ana and Benny entered into a written contract of loan on August 1, 2003, where Benny borrowed P3 million
from Ana. With knowledge that the debt has prescribed, Benny paid Ana the P3 million plus interest on April1,
2020. Benny asked for your advice regarding the recovery of the amount that was paid. Can Benny recover?*
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No, Benny can no longer recover because Ana has the right of retention.

Which of the following consists of a bilateral obligation?*

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Obligations of parties in a contract of sale

Statement 1: Obligations derived from law are not

presumed.

Statement 2: Obligations arising from contracts have the force of law between the contracting parties. *
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Both statements are true.

Park Min-young left her home in Manila to go to a vacation in South Korea. While Park Min-young was in South
Korea, she heard reports that a strong typhoon will be ravaging the Philippines. Park Min-young is worried that
she left her home unattended. Park Min-young contacted her friend, Momo, to check the conditions of her
house. Momo went to Park Min-young's residence and saw that Mina, Park Min-young's friendly neighbor, is
already doing the necessary improvements to protect the house. Park Min-young contacted Mina and thanked
her for the improvements that were introduced, and asked if Mina can update here of the situation of her home
from time to time. What is the juridical relation between Park Min-young and Mina?*
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A contract of agency

Tyrion obliged herself to give the red Honda car with plate number TWC-222 to Shae. Which of the following
statement is true?*
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Tyrion can substitute another car only if Shae agrees.

A debtor, in an obligation to give a specific thing, must take care of the thing with:*
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The diligence of a good father of a family.

In an obligation to give a specific thing:*

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There is an obligation to deliver the fruits from the time the obligation to deliver arises

Generally, which of the following is not a part of the duties of the debtor in an obligation to give a generic
thing?*
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To deliver its accessions and accessories

As a general rule, in order to put the debtor in delay, demand must be:*
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Either judicial or extrajudicial

Ollena obliged herself to deliver to Margaery a wedding dress for her wedding day that is scheduled on
October 9, 2024. However, on the same day itself, Ollena failed to deliver the wedding dress and instead
delivered the dress two days after on October 11, 2024. Margaery sued Ollena for damages for the legal delay
in delivering the dress. Ollena contended that there was no prior demand to put her in legal delay. Who is
correct?*
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Margaery is correct. Considering that time is of the essence, there need not be any demand to put Ollena in delay.

Any waiver of past fraud is:*

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Valid if agreed upon by both the debtor and the creditor

Dolo causante exists:*

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During the time of perfection of the obligation

Statement 1: Generally, parties can stipulate a lower degree of diligence than the diligence of a good father of
a family. Statement 2: Future gross negligence may be waived.*
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Only statement 1 is true.

Ramsay obliged himself to deliver a parcel of land to Jon on August 1, 2022, subject to the suspensive
condition that Jon will release a song. The parcel of land has a fair market value of P20 million on August 1,
2022. On December 1, 2022, Jon released a song. On the same day, the fair market value has risen to P22
million. Ramsay claims he is entitled to P2 million. Is Ramsay correct?*
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No, since the land improved by its nature or by time, the improvement shall inure to Jon.

In an obligation between Ned and Robert, which of the following is a mixed condition?*
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A condition that Robert will marry Lyanna on or before September 1, 2022.

Due to his kindness, Gendry obliged himself to give to Arya P100,000 when his friend dies. His friend has been
reported to be terminally ill, and in order to appease Arya's feelings, Gendry decided to oblige himself. Which
of the following statements best describe the obligation?*
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It is a valid obligation subject to a suspensive period.

In which of the following instances does a debtor lose the benefit of the period?*
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When the debtor violates any undertaking, in consideration of which the creditor agreed to the period.

Rob, Jon, and Sansa issued a promissory note stating "We promise to pay Bran and Rickon P120,000 on
September 30, 2022." On September 30, how much can Bran collect from Rob?*
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P20,000

Statement 1: If the debt produces interest, payment of the interest shall not be deemed to have been made
until the principal has been covered. Statement 2: If no place for payment has been stipulated, payment must
then be made at the residence of the debtor.*
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Both statements are not true.

Which of the following is not a requisite for the rules on application of payments to apply?*
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Payment made is sufficient to cover all debts.

Statement 1: Grey Worm owed Missandei P1,000,000. Missandei, through his kindness, later told Grey Worm
that he need not pay the P1,000,000. Instead, Grey Worm should just take care of Missandei's farm for the rest
of his life. Grey Worm agreed. This extinguishes Grey Worm's obligation to pay P1,000,000 by way of
condonation. Statement 2: Condonation need not always be express but may be inferred from the conduct of
the parties.*
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Only statement 2 is true.

Loras obliged himself to pay Renly P500,000 subject to the suspensive condition that Renly will not lea ve the
Philippines in ten years. Subsequently, Loras and Renly novated the obligation, stating that, instead of
P500,000, Loras will pay Renly P300,000 and give his car. Does the suspensive condition still apply? *
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Yes. In novation, as a general rule, the condition, whether suspensive or resolutory, is carried over to the new obligation.

Can legal subrogation exist without the debtor's knowledge?*

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Yes, when a creditor less preferred pays a creditor which is more preferred.

The following obligations are demandable at once, except:*

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An obligation with a condition antecedent.

Legal compensation will not take place if:*

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there is a controversy or retention involving one of the debts commenced by third persons and communicated in due time
to the debtor.

It is a mode of extinguishing an obligation which has a two-fold function: One is to extinguish an old
obligation, and the other to substitute a new on in its place.*
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Novation

The principle of negotiorum gestio does not apply:*

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In both mentioned cases.

The delivery of mercantile documents such as checks will produce the effect of payment:*
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when through the fault of the creditor they have been impaired.

Normani entered into a contract with Camila whereby Camila will construct Normani's house for a service fee
of P2,000,000. Subsequently, Camila changed the terms, and aske Normani to pay P3,000,000, citing
unforeseen challenges in accomplishing the house. Camila presented two medical certificates citing that two
out of her five workers got sick, and she was forced to hire another personnel and pay higher wages. Is
Camila's action of asking P3,000,000 from Normani justified?*
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Correct answer

No. It violates the mutuality of contracts.

Perrie entered into a contract with Leigh-Ann. It was agreed that Perrie will deliver 3 chickens per month for 20
years to Leigh-Ann in exchange for Leigh-Ann's 1,000 sqm. parcel of land. The contract was entered into in
writing. Is the contract valid?*
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Correct answer

Yes, because there is a meeting of the minds and they have the autonomy to set stipulations.
Statement 1: A stipulation of pactum commisorium in a contract is void. Statement 2: A loan contract without
any stipulation as to interest is void.*

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Correct answer

Only Statement 1 is true.

Megan and Beyonce entered into a contract whereby Megan bound herself to deliver 5,000 liters of milk to
Beyonce for P2,000,000. Cardi, Beyonce's competitor in the cheese industry, gained knowledge of this contract
and she induced Megan to deliver milk of inferior quality. Megan delivered milk of inferior quality which
caused Beyonce to be entangled into a lawsuit with customers because of spoiled cheese. Beyonce
discovered that the spoilage of the cheese was due to Megan delivering the milk of inferior qua lity as induced
by Cardi. Beyonce sued Megan and Cardi for damages. Will the case against Cardi prosper?*
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Correct answer

Yes, because she interfered with the contract between Megan and Beyonce.

As a general rule, when are contracts perfected?*

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Correct answer

Upon acceptance of the offer

Which of the following is a solemn contract?*

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Contract of donation involving real property

It is a contract where there is no correlative prestation received by the other party.*

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Correct answer

Gratuitous contract

An insurance contract is an example of:*

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Onerous, nominate, and aleatory contract

This is the stage of contract when the parties perform their obligations under the contract.*
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Correct answer

Consummation

Statement 1: Acceptance must be qualified in order to perfect a contract. Statement 2: Acceptance of

business advertisements of things for sale perfects a contract.*
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Correct answer

Both statements are not true.

Jefferson offered to sell to Adrianita pieces of jewelry at a price of P500,000. Jefferson resides in Cebu while
Adrianita resides in Davao. The pieces of jewelry are in Vigan. Through sending a letter, Adrianita intimated her
acceptance of the offer. Jefferson received the letter of acceptance. Jefferson delivered the pieces of jewelry
from Vigan to Davao. Adrianita made the payment when they met in Tagaytay. Where is the contract deemed
perfected?*

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Correct answer

Cebu

Bailey offered to sell to Kida various wearing apparel at a price of P200,000 on Monday. Kida was able to
receive the offer on Tuesday. On Wednesday, he decided to accept the offer and wrote a letter to that effect.
On that day, he sent the letter of acceptance to Bailey. Bailey was able to receive the letter on Thursday, but
since she was busy that day, she was only able to read the letter on Friday. When was the contract of sale
perfected?*
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Correct answer

Friday

Ms. Charity offered to sell to Mr. Andres fruits at a price of P50,000 that he will instead buy the fruits at a price
of P40,000. Ms. Charity did not reply. A week after, Mr. Andres learned that Ms. Charity was able to sell the
fruits for P38,000 to another person. Mr. Andres sued Ms. Charity for breach of contract. Will Mr. Andres suit
prosper?*
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Correct answer

No, because no contract was perfected.

Which phrase is the most accurate to complete the statement: Deaf-mutes who do not know how to _____ are
incapacitated to give consent.*
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Correct answer

Read and write

Which of the following is a valid contract?*

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A contract whereby one undertakes to pay P1,000,000 if a commercial space travel will be available in the future.

Which is the least infirm or defective among the following:*

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Correct answer

Rescissible contracts

An absolute deed of sale of several parcels of land was executed by S (vendor) and B (vendee). In an action by
S to compel B to allow the repurchase or the property, S alleged that his verbal agreement with B binding the
latter to execute another document giving him the right to redeem the property was the real inducement on his
part in making the contract of absolute sale and that B subsequently refused to put this right in writing. Should
S be allowed to present parol evidence of the verbal agreement?*
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Yes, since there is clearly an established promise on the part of the vendee to give a counter -contract expressing the
vendor's right to redeem.

Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless the debtor
proves the contrary.*
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True
If a contract is required to be in a certain form for its perfection, that form is indispensable and if it is not
followed, the contract is void.*
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False

In order that reformation of a contract may be availed of by a party, there should be a meeting of minds of the
parties to the contract.*
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True

Reformation is not available if the contract is void.*

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True

When one party has brought an action to enforce the instrument, he cannot subsequently ask for its
reformation.*
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True

If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal
meaning of the stipulation shall control.*
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True

The interpretation of obscure words or stipulations in a contract shall not favor a party who caused the
obscurity.*
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True

The action for recission is subsidiary; therefore, it cannot be instituted by a party if there are other legal means
to obtain reparation for the damages he suffered.*
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True

Statement 1: Parol evidence has the effect of modifying the agreement but this should not prohibit the court to
force a vendee to live up to his contract in its entirety and to prevent him to commit fraud. Statement 2: If in
case of mutual mistake by the parties, an introduction of evidence to show the intention of the parties is
allowed.*
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True; True

To warrant relief by way of reformation, inequitable conduct has been held to consist in doing acts, or omitting
to do acts, which the court finds to be unconscionable. Inequitable conduct includes the following, except: *
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Concealing a right;
S sold his land to B. It was agreed that the sale will include all the improvements. However, the contract as
signed by the parties, states that the land is being sold, excluding improvements thereon. Is reformation a
remedy herein?*
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Yes, if S was selling his land including the improvements and B was buying the land including the improvements.

When a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement,
said instrument may be reformed. To justify reformation on this ground, the following requisites must concur,
except:*
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The mistake must be a mistake of law;

S sold to B lot No. 5 which was erroneously designated as lot No. 10 in the deed of sale. Subsequently, S sold
to C lot No. 10 which, through mistake, was designated as lot No. 5 in the deed of sale. B and C occupied the
lots respectively sold to them. Is reformation proper?*
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Yes, because there being a meeting of the minds and the mistake is merely a simple mistake in the drafting of the
documents of sale.

Statement 1: If one party was mistaken and other acted fraudulently or inequitably in such a way that the
instrument does not shoe their true intention, the former may ask for the reformation of the instrument.
Statement 2: Reformation is granted when the mistake is mutual.*
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True; True

Statement 1: When one party was mistaken and the other knew or believed that the instrument did not state
their real agreement, but concealed that fact from the former, the instrument may be reformed. Statement 2:
The remedy of reformation may be availed only by the party who acted in good faith.*
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True; True

Statement 1: When through the ignorance, lack of skill, negligence or bad faith on the part of the person
drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the
parties, the courts may order the instrument be reformed. Statement 2: If the two parties agree upon the
mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely
or with a right of repurchase, reformation of the instrument is proper.*
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True; True

This defective contract remains valid until annulled unless there has been a ratification.*
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Correct answer

Voidable contracts

This defective contract cannot be enforced unless they are ratified.*

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Correct answer

Unenforceable contracts
This defective contract has no legal effect at all and cannot be ratified.*
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Correct answer

Void or inexistent contracts

Which of the following is not a requisite for rescission?*

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Correct answer

The consent of one of the parties should have been vitiated.

Which of the following contracts is not rescissible?*

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Correct answer

Those entered between minor and a person of legal age;

G is the guardian of W (ward). G sells the property of W worth P20,000 for only P15,000. The contract is?*
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Correct answer

Valid

In order that fraud of creditors may be a valid ground for rescission, the following requisites must also be
present, except:*
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Correct answer

The debtor is insolvent, thus the creditor can no longer recover his credit;

Statement I: It is not necessary that the credit of the creditor in the accion pauliana must exist prior to the
fraudulent alienation, however the date of the judgment enforcing it is material. Statement II: Even if the
judgment be subsequent to alienation, it is merely declaratory with prospective effect to the date when the
credit was constituted.*
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Correct answer

False, False

Alienations by gratuitous title are presumed fraudulent if the donor did not reserve sufficient property to pay
off debts contracted before the donation.*
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True

The action for rescission must be commenced within three years.*

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False

A voidable contract is binding until it is annulled by proper action in court.*

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True
If a party ratifies a voidable contract, he can still subsequently ask for its annulment.*
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False

Ratification requires the conformity of the contracting party who has no right to bring the action for
annulment.*
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False

Ratification cleanses the contract from all its defects from the moment the ratification was made. *
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False

Annulment of a voidable contract is available only to those who are obliged principally or subsidiarily; hence, it
cannot be availed of by third person.*
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True

When the defect of the contract consists in the incapacity of one of the contracting parties, the incapacitated
person is obliged to make restitution only to the extent that he has been benefited by the thing or the price
received by him.*
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True

A contract where both parties are incapable of giving consent is voidable.*

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False