University of Mindanao- Digos College
FINAL EXAM
Law 1- Obligations and Contracts
1. 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. Only the first is correct.
B. Both answers are correct.
C. Both answers are not correct.
D. Only the second is correct.
2. 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
3. A borrowed money from B payable on December 10, 2008. If A failed to pay on due date, will A be in delay?
A. No, because demand has not been made by B.
B. Yes, because there is stipulation as regards the due date.
C. Yes, if the obligation is in writing.
D. No, if A has the money to pay B.
4. . 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 threof, are liable for damages.
A. True; true
B. True; false
C. False; true
D. False; false
5. 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. False; false
B. True; true
C. True; false
D. False; true
6. . 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.
7. 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. False; true
B. True; true
C. True; false
D. False; false
8. 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-delict
B. Quasi-contract
C. Negotiorum gestio
D. Solutio indebiti
9. Omission of the diligence which is required by the circumstances of person, place and time.
A. Negligence
B. Ignorance
C. Impotence
D. Insanity
10. 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.
11. 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
12. 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. A can insist on just paying B damages or the monetary value of the sugar.
C. B can just buy 10 kilos of sugar and charge the expense to A.
D. B may require another person to deliver the sugar and charge the expenses to A.
13. 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 the obligor requested for an extension of time.
C. When demand would be useless.
D. When the obligor has expressly acknowledged that he is in default.
14. 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. No, because demand has not been made by B.
C. Yes, if the obligation is in writing.
D. No, if A has the money to pay B.
15. Which is not considered as quasi-contract?
A. Solutio indebiti
B. When the third person with the knowledge of the debtor, pays the debt.
C. Negotiorum gestio
D. Reimbursement due the person who saved property during fire or typhoon without the
knowledge of the owner.
16. 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.
17. 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.
18. 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.
19. 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.
21. 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 C. P500 from A or P500 from B
B. P1,000 from A and P1,000 from B D. P500 from A and P500 from B
22. 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 C. P500 from A and P500 from B
B. P500 from A or P500 from B D. P250 from A and P250 from B
23. A and B 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 C. P500 from A and P500 from B
B. P500 from A or P500 from D. P250 from A and P250 from B
24. 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 C. P250 from A and P250 from B
B. P250 from A or P250 from B D. P500 from A and P500 from B
25. 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 C. P3,000
B. P2,000 D. P6,000
26. A is obliged to give B her college ring. If she fails to do so, she must give P10,000. This is
A. Obligation with a penal clause
B. Conjoint obligation
C. Facultative obligation
D. Alternative obligation
27. 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. Where there is breach of the obligations
28. Where a property is alienated to the creditor in satisfaction of a debt in money.
A. Consignation C. Application of payment
B. Payment by cession D. Dation in payment
29. 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 C. Application of payment
B. Consignation D. Cession
31. The act of offering the creditor what is due him together with a demand that the creditor
accept the same.
A. Application of payment C. Datio in solutum
B. Cession D. Tender of payment
32. 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 C. Application of payment
B. Datio in solutum D. Consignation
33. The meeting in one person of the qualities of creditor and debtor with respect to the same
obligation.
A. Confusion C. Novation
B. Compensation D. Condonation
34. When two persons on their own right are creditors and debtors of each other
A. Compensation C. Novation
B. Confusion D. Condonation
35. The transfer to a third person of all the rights appertaining to the creditor.
A. Subrogation C. Delegacion
B. Expromission D. Novation
36. 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.
37. A sold to B his cow for P5,000. No date is fixed by the parties for the performance of their respective obligations.
The obligation of A is
A. To deliver the cow upon the payment by B of P5,000
B. To deliver the cow immediately as there is a perfected contract.
C. To deliver the cow within the reasonable time from the perfection of the contract
D. To rescind the contract as there is no time fixed for the delivery and payment.
38. A owes B P10,000 due on March 10, 2010. A owes B P8,000 due on March 11, 2010. A obliged himself to deliver
to B a cow valued at P6,000 on March 12, 2010. On March 13, 2010, a paid B P10,000. If A makes an application
of payment,
A. The P10,000 may be applied either to the first debt or second debt
B. The P10,000 should be applied to the first debt only
C. The P10,000 should be applied to the second debt only
D. The P10,000 may be applied to the first debt, or to the second debt or to the third debt
39. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the
parties to a contract, the proper remedy is
A. Annulment of the contract C. Ratify the contract
B. Ask for a specific performance D. Reformation of the contract
40. A sold his land to B. The sale was made orally. B paid the agree price. B wanted to have the
sale registered but he needs a public instrument. Which is correct?
A. B may compel A to execute the public instrument because the sale is valid.
B. B may sue A for the return of his money as no one shall be unjustly enriched at the
expense of another.
C. B cannot demand the return of the purchase price because the sale is unenforceable.
D. B may only occupy and use the land as buyer in good faith
41. A is the guardian of B, a minor. B sold A’s land in writing to C valued at P1M for P.7M. The
sale is (stage in the life of a contract)
A. Voidable C. Unenforceable
B. Rescissible D. Void
42 .A delivered his bracelet to B for B’s necklace. No written agreement was signed by the parties.
Which of the following is appropriate description of the contract between A and B?
A. Onerous and bilateral C. Bilateral and innominate
B. Bilateral and innominate D. Aleatory and nominate
43 .They are the elements that are found in certain contracts and are presumed to exist unless set aside by the parties
A. Natural elements C. Artificial elements
B. Accidental elements D. Incidental elements
44. They refer to the elements that may be stipulated by the contracting parties
A. Accidental elements C. Artificial elements
B. Natural elements D. Incidental elements
45. The following are some accidental elements of a contract of sale, except
A. Accession and accessories C. Place of payment
B. Interest rate D. Terms of payment
46. A contract where one party receives no valuable consideration and the cause is the liberality
of the benefactor is
A. A gratuitous contract C. An onerous contract
B. A unilateral contract D. A commutative contract
47. A delivered his van to B for the latter’s use for one week without any compensation. The
cause of the contract is
A. The generosity of A C. The period of one week
B. The van of A D. The delivery of the van
48. The principle that contracting parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary to law, moral,
public policy and public order, refer to the principle of
A. Liberty of contract C. Consensuality of contract
B. Relativity of contract D. Mutuality of contract
49. The following instances will render an offer ineffective before acceptance is conveyed. Which
one will not? When one of the parties
A. Is placed under a hypnotic spell C. Becomes insane
B. Becomes insolvent D. Is civilly interdicted
50. The following statements pertain to the cause of a contract. Which statement refer to motive?
A. It is illegality does not affect the validity of the contract
B. It is the essential reason of a contract.
C. It is always known to the contracting parties
D. there will be no contract without it
51. The bargaining point, that is, when negotiation is in progress (stage in the life of a contract)
A. Consummation C. Perfection
B. Conception D. Birth
52. The meeting of minds regarding the object and cause of the contract (stage in the life of a
contract)
A. Birth C. Death
B. Preparation D. Conception
53. The point where the parties have performed their respective obligations and the contract is
Terminated
A. Consummation C. Perfection
B. Conception D. Preparation
54. When there is concurrence of offer and acceptance, there is
A. Consent C. Payment
B. Consignation D. Tender of payment
55. A contract where the cause with respect to each contracting party is the prestation or the
promise of a thing or service by the other is
A. An onerous contract C. An innominate contract
B. A gratuitous contract D. An aleatory contract
56. Although validly agreed upon, courts can nullify this contract because of damage to one of
the parties or to a third person and its enforcement, may cause injustice by reason of some
external facts
A. Rescissible contracts C. Unenforceable contracts
B. Voidable contracts D. Void contracts
57. A contract where the fulfillment is dependent upon the chance, so the values may vary
because of the risk or chance.
A. Aleatory C. Remunerative
B. Commutative D. Gratuitous
58. A clause providing that the mortgagee will automatically own the property mortgaged if the
debt is not paid at maturity is
A. Dacion en pago C. Pactum Commissorium
B. Payment by cession D. Upset price
59. The contact must bind both contracting parties
A. Mutuality of contract C. Consensuality of contract
B. Simplicity of contract D. Relativity of contract
60. Not a characteristic of contract
A. Simplicity of contract C. Mutuality of contract
B. Consensuality of contract D. Relativity of contract
61. Contracts are generally effective only between the parties, their assigns and their heirs
A. Relativity of contract C. Mutuality of contract
B. Simplicity of contract D. Consensuality of contract
62. Not a requisite of stipulation pour autrui
A. There must be an agency between either of the parties and the third person
B. The contracting parties must have clearly and deliberately conferred a favor upon third
person
C. The stipulation must be part of the contract
D. The third person communicated his acceptance to the obligor before its revocation
63. The following contracts are not perfected until the delivery of the object of the obligations,
except
A. Sale C. Commodatum
B. Deposit D. Pledge
64. Acceptance of an offer made by letter or telegram shall bind the offeror. From the time the
A. Acceptance came to the knowledge of the offeror
B. Offeree accepted the offer
C. Offeree sent his letter or telegram
D. Offeror made the offer
65. A, B and C are jointly liable to D in the amount of P9,000. D assigns the entire credit to A. In
this case
A. A’s share in the obligation is extinguished because of confusion.
B. The obligation is extinguished because of confusion
C. B and C will not be liable to A
D. a becomes the new creditor and may demand from B and C P4,500 each
66. One is not a requisite needed in order that obligation shall be extinguished by loss or
destruction of the thing due:
A. When the thing lost is generic
B. When the thing is lost without the fault of the debtor
C. When the thing is lost before the debtor has incurred in delay.
D. When the thing lost is specific
67. The obligation is demandable on the date of the obligation and shall continue to be in force
up to the arrival of the day certain:
A. Resolutory period C. Indefinite period
B. Suspensive period D. Legal period
68. Characteristic of void contracts, except
A. The inexistence can be assailed by third person
B. Defense of illegality cannot be waived
C. Cannot be ratified
D. Action for declaration of inexistense does not prescribe
69. Unless ratified, suits will not prosper if the contract is
A. Unenforceable C. Rescissible
B. Voidable D. Void
70. A is obliged to give B her college ring. If she fails to do so, she must give P10,000. This is
A. Obligation with a penal clause
B. Alternative obligation
C. Conjoint obligation
D. Facultative obligation
71. Where the penalty takes the place of indemnity for the damages and for the payment of
interest.
A. Where there is breach of the obligations.
B. Where there is stipulation to the effect that damages or interest may still be recovered,
despite the presence of the penalty clause.
C. When the debtor refuses to pay the penalty imposed in the obligation.
D. When the debtor is guilty of fraud or dolo in the fulfillment of the obligation.
72. 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 C. False; true
B. True; false D. False; false
73. 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.
74. 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 that the event cannot occur.
A. False; true C. True; true
B. True; false D. False; false
75. 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. A may compel B to accept her payment.
B. A may compel B to accept her payment because the period is deemed for the benefit of
A.
C. A may be allowed to pay B, if B consents
D. B may refuse A’s payment as the period is deemed for the benefit of B.
