Question Answer

The following are the requisites of an obligation, except: a. passive subject, debtor or obligor. b. active
subject, creditor, or obligee. c. efficient cause. d. demand d

Obligations may arise from any of the following, except: a. contracts. b. quasi-contracts. c. law. d.
prestation. d

It is the voluntary administration of the property of another without his consent. a. Negotiorum gestio b.
Solutio indebiti c. Quasi-delict d. Contract a

It is a wrong committed without any pre-existing relations between the parties. a. Natural obligation b.
Quasi-delict c. Quasi-contract d. Crime b

Unless the law or the stipulations of the parties require another standard of care, every person obliged
to give something is also obliged to take care of it with: a. extra-ordinary diligence. b. diligence of a
father of a good family. c. diligence of a good father of a family. d. good diligence of a father of a family.
c

The creditor has a right that is enforceable against a definite passive subject. This right is known as: a.
personal right. b. real right. C. natural right. d. civil right. a

It is a thing that is particularly designated or physically segregated from all others of the same class. a.
Generic thing b. Indeterminate thing c. Determinate thing d. Real thing c

One of the following is a determinate thing. Which is it? a. a cow. b. a horse. c. a Toyota car with engine
no. 12345, body no. 34890 and plate no. ABC 123. d. a ring with diamond embellishment. c

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 be made or not on due date. d. When time is of the essence of the contract.
c

This refers to delay on the part of the creditor. a. mora solvendi ex re b. compensatio morae c. mora
solvendi ex personae d. mora accipiendi . d

There shall be no liability for loss due to fortuitous events in 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 risks. d.
When the obligation is to deliver a determinate thing and there was no stipulation as to the liability of
the debtor in case of loss due to fortuitous events. d

The following are the remedies of the creditor to pursue his claims against the debtor, except to: a.
pursue the property owned and in possession of the debtor. b. exercise all the rights and bring all the
actions of the debtor (accion subrogatoria). c. impugn the acts which the debtor may have done to
defraud his creditors (accion pauliana). d. compel the debtor to perform the service in obligations to do.
d

D borrowed P50,000.00 from C. C dies before he has collected the debt leaving S, his son, as heir. Which
of the following statements is correct? a. S can collect from D although D and C did not agree that the
credit right will pass on to the heirs of C. b. S cannot collect because the credit right is personal to C. c. S
can collect only if D and C agreed that the credit right will pass on the heirs of C. d. S cannot collect
because the law prohibits the transmission of the credit right. a

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. b

One of the following obligations is not immediately demandable. a. pure obligation b. obligation with a
resolutory condition c. obligation with an in diem period d. obligation with an ex die period. d

One of the following is a void obligation: a. D is obliged to give C P 5,000.00 if C does not go to the
moon. b. D is obliged to give C P5,000.00 if D goes to Baguio c. D is obliged to give C PS,000.00 if C goes
to Baguio d. D is obliged to give C P5,000.00 if D wins first prize in the sweepstakes on a ticket that he
had already purchased. b

D is obliged to give C P10,000:00 if X dies. This is an example of: a. an obligation with a suspensive
condition. b. an obligation with a resolutory condition. c. an obligation with a period. d. a pure
obligation. c

When the debtor binds himself to pay when his means permit him to do so, the obligation is: a. an
obligation with a resolutory condition. b. a pure obligatiom. c. an obligation with a suspensive condition.
d. an obligation with a suspensive period. d

Whenever a period is designated in an obligation, the said period shall be presumed to have been
established for the benefit of a. the deltor. b. the creditor. c. both the debtor and the creditor. d. neither
of the parties. c

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. d

An obligation ceases to be alternative and becomes a simple obligation in the following cases, except
when: a. the debtor has communicated his choice to the creditor. b. the right of choice has been
expressly granted to the creditor and his choice has been communicated to the debtor. c. among the
several prestations that are due only one is practicable. d. three prestations are due but one of them is
unlawful or impossible. d

D is obliged to give C a specific watch, a specific ring, or a specific bracelet. The parties agreed that C will
have the right to choose the thing which will be given to him. Before C could make his choice, the watch
and the ring are lost through D's fault, successively. What is the right of C? a. C may choose the delivery
to him of the bracelet, or the price of the watch or the price of the ring plus damages. b. C cannot
choose the price of the watch or the price of the ring because the said objects have already been lost. c.
C can only choose to have the bracelet because anyway, D can still perform his obligation. d. C can only
choose to have delivery of the bracelet or the price of the ring which was the last item that was lost plus
damages. a

D is obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as substitute.
Which of the following statements is true? a. If the ring, is lost through a fortuitous event before
substitution, the obligation is extinguished. b. the bracelet is-lost through a fortuitous event before
substitution, the obligation is extinguished c. If the ring is lost through a fortuitous event after
substitution, the obligation is extinguished. d. If the ring is lost through the debtor's fault after
substitution, the debtor shall pay damages. a

A, B, C and D are obliged to give V, W, X, Y and Z P20,000.00. a. V may collect from A P20,000.00. b. V
may collect from A P5,000.00. c. V may collect from A P1,000.00. d. V may collect from A P4,0000.00.
c

A, B, C and D, joint debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P20,000.00. a. V may
collect from B P20,000.00. b. V may collect from B P4,000.00. c. V may collect from B P5,000.00. d. V
may collect from B P1,000.00. c

A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z, joint creditors, P20,000.00. a. V may
collect from C P20,000.00. b. V may collect from C P4,000.00. c. V may collect from C P5,000.00. d. V
may collect from C P1,000.00. b

A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P20,000.00. a. V
may collect from D P20, 000.00. b. V may collect from D P4,000.00. c. V may collect from D P5,000.00. d.
V may collect from D P1,000.00. a

A, 25, B, 35, and C, 17, are solidary debtors of X in the amount of P9,000.00 a. X may collect from A
P9,000.00. b. X may collect from A P6,000.00. c. X may collect from A P1,000.00. d. X may collect nothing
because the obligation voidable, C being a minor. b

The following obligations are divisible, except: a. to give definite things. b. which has for its object the
execution of a certain number of days of work. c. which has for its object the accomplishment of work
by metrical units. d. which by its nature is susceptible of partial performance. a

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. d

Consider the following statements: I. The nullity of the principal obligation carries with it the nullity of
the penal clause. II. The nullity of the principal obligation does not carry with it the nullity of the penal
clause. III. The nullity of the penal clause carries with it the nullity of the principal obligation. IV. The
nullity of the penal clause does not carry with it the nullity of the principal obligation. a. Statements I
and III are true. b. Statements I and IV are true c. Statements II and III are true. d. Statements II and IV
are true. b

D borrowed from C P50,000.00. The obligation is secured by a chattel mortgage on D's Toyota car.
Subsequently, D paid C P20,000.00. Unknown to D, T, a third person, pays C P50,000.00 believing that D
still owed C such a. T can recover P50,000.00 from D. If D cannot pay, T can foreclose the mortgage on
D's Toyota b. T can recover nothing from D because he paid C without the knowledge and consent of D.
c. T can recover P30,000.00 from D. If D cannot pay, T can foreclose the mortgage on D's Toyota car. d. T
can recover P 30, 000 from D. If D cannot pay, T cannot foreclose the mortgage on D's Toyota car.
d

The following statements concerning payment by cession are true, except one. Which is it? a. The
creditors become the owners of the properties of the debtor that were ceded to them. b. Payment by
'cession extinguishes only to the extent covered by the proceeds of the sale of the debtor's properties. c.
The debtor must be insolvent. a

D obtained from ABC Bank a loan of P 12, 000, 000.00 payable at the end of 10 years. Before maturity,
an extraordinary inflation supervened causing the value of the debt to fall to P4,000,000.00 on the date
of maturity. On due date, D must pay ABC Bank: a. P12,000,000.00 b. P4,000,000.00. c. P36,000,000.00
d. P3,000,000.00. c

B borrowed from XYZ Bank P2,000,000.00 payable at the end of 5 years. Before maturity, an
extraordinary deflation supervened causing the value of the debt to rise to P5,000,000.00 on the date of
maturity. On due date, B must pay XYZ Bank a. P2,000,000.00 b. P5,000,000.00. c. P800,000.00. d.
P20,000,000.00 c

The money or currency which the debtor may compel the creditor to accept in payment of a debt,
whether public or private, is known as: a. notes payable to order. b. legal tender. c. bill of exchange. d.
mercantile document. b

The delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted
equivalent of performance is known as: a. payment by cesssion. b. dation in payment. c. application of
payment. d. consignation b

D owes C the following debts: P6,000.00 due on June 12; P6,000.00 due on June 15; P6,000:00 due on
June 18; and P6,000.00 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
granted to C. Assuming that D has P6,000.00 on June 18 and is ready to pay C, which of the following
statements is correct? a. D may apply his payment of P6,000.00 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 his payment only to the debt due on
June 20 because it is the most burdensome to him. c. D must apply the payment proportionately to the
debts due as of June 18 at P2,000.00 each. d. D may apply the payment to any of the four debts. a
The offer made by the debtor to pay his obligation to his creditor is known as: a. consignation. b. tender
of payment. c. application of payment. d. dation in payment. b

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 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 collect. b

M owes P 10,000.00. The obligation is evidenced by a promissory note. Subsequently, P assigned the
note to A, A to B, B to C, and C back to M. The obligation of M is extinguished by: a. compensation. b.
confusion. C. condonation. d. The obligation is not extinguished because there was no payment b

In order that condonation may extinguish an obligation involving a movable property whose value
exceeds P5, 000.00 a. It is sufficient that the condonation and the acceptance are in writing, even a
private one. b It is required that the condonation and the acceptance be in a public instrument. C The
delivery of the document evidencing the debt is sufficient since the property is movable. d. The
condonation and the acceptance may be made orally. a

One of the following is not a requisite of legal compensation. Which is it? a. That each one of the
obligors be bound principally, and that he be at the same time a principal creditor of the other. b. That
the two debts be due. c. That both debts be liquidated and demandable. d. That the debts are payable
at the same place. d

Henry, husband, and Wilma, wife, are legally separated. By order of the court which decreed the legal
separation, Henry is obliged to give a monthly support of P10,000.00 to Wilma payable within the first
five days of the month. Wilma owes Henry P10,000.00 by way of a business loan. On the other hand,
Henry has not yet given Wilma's support of P10,000.00 for this month. Both debts are already due.
Which of the following statements is correct? a. Both debts are extinguished by legal compensation
because both are already due. b. Wilma may claim compensation but not Henry. c. Henry may claim
compensation but not Wilma. d. Neither one may claim compensation because the debts are not of the
same kind. b

45. D owes C P10,000.00 with G as guarantor. C, on the other hand, owes D, P8,000.00. Both debts are
already due but D is insolvent. In this case- a. C may collect from G P10,000.00 b. C may collect from G
P2,000,00 because a guarantor can set up compensation as regards what the creditor owes the principal
debtor. c. C may collect nothing from G because D is insolvent. d. C may collect P8,000.00 from. G.
b

D borrowed P50,000.00 from C .Subsequently, D proposed to C that T would assume his (D's) debt. C
accepted the proposal of D. This substitution of debtor is known as a. expromision. b. Delegacion c.
tradition. d. dacion en pago. b

Refer to the facts in “D borrowed P50,000.00 from C .Subsequently, D proposed to C that T would
assume his (D's) debt. C accepted the proposal of D”. Assume also that on due date, T could not pay
because of his insolvency which was in fact subsisting but was not known to D or of public knowledge at
the time that D delegated his debt. In this case – a. C can revive D's debt because T's insolvency was
already existing at the time that D delegated his debt. b. C can revive D's debt whether or not he (D) was
aware of T's insolvency since he (D) proposed the substitution. c. C cannot hold D liable because his (D's)
obligation was extinguished when he was substituted by T d. The novation is void because D did not take
steps to determine the solvency of T when he (D) delegated his debt. c

D obliged himself to give 5 grams of "shabu" to C: Later, the parties agreed that D would instead give to
C 5 sacks of rice. Which of the following statements is correct? a. The novation is void because the
original obligation is void. Hence, C cannot demand the delivery of 5 sacks of rice from D. b. The
novation is valid because the new obligation is valid. Hence, C can demand the delivery of 5 sacks of rice
from D. c. The original obligation although void is validated by the new obligation. Hence, C can demand
the delivery of 5 sacks of rice from D. d. The new obligation is only voidable because D had not yet
performed the original obligation at the time of the novation. Accordingly, the new C may demand the
obligation is binding and delivery of 5 sacks of rice from D until the new obligation is annulled by a
proper action in court. a

On July 1, 2015, D obliged himself to give C P50,000.00 if C will marry X on or before December 31, 2015.
The condition of the obligation is a: a. positive condition. b. negative condition. c. joint condition. d.
impossible condition. a

Refer to “On July 1, 2015, D obliged himself to give C P50,000.00 if C will marry X on or before December
31, 2015.”. Which of the following statements is incorrect? a. The obligation of D is demandable if C
marries X on or before December 31, 2015. b. The obligation of D is extinguished if it is already January
1, 2016 and C has not yet married X. c. The obligation of D is extinguished on December 2, 2015 if X dies
on the said date and C has not yet married X d. The obligation is demandable if C marries X on January 1,
2016. d

On July 1, 2015, D obliged himself to give C a specific car if C will not marry X on or before December 31,
2015. The condition of the obligation is a: a. positive condition. b. negative condition. c. divisible
condition. d. impossible condition. b

Refer to “On July 1, 2015, D obliged himself to give C a specific car if C will not marry X on or before
December 31, 2015.”. Which of the following statements is incorrect? a. The obligation of D is
demandable if C marries X on January 1, 2016. b. The obligation of D is demandable on December 2,
2015 if X dies on the said date and D has not yet married X. c. The obligation of D is demandable if it is
already January 1, 2016 and D has not yet married X. d. The obligation is demandable if C marries X on
December 2, 2015. d

D owes C P5,000.00. T, a third person and without any intention to be reimbursed by D, paid the debt
without the consent of D. C accepted the payment. . a. The payment did not extinguish the debt of D to
C because it was made without the consent of D. b. The payment did not extinguish the debt because it
was not made by D himself. c. The payment is considered valid because it was accepted by the creditor.
d. The payment may be considered valid if T had the intention to be reimbursed. c
A mode of extinguishing obligations up to their mode of extinguishing concurrent amount when two
persons are principal debtors and creditors of each other is called: a. novation. b. payment. c.
compensation. d. merger. c

D owes C P6,000.00. No date for payment was stipulated by the parties. a. C cannot require D to pay
because there is no debt for payment. b. C can require D to pay at anytime. c. D is not liable to C
because the obligation is void there being no date of payment. d. D is not required to pay unless C goes
to court and asks the court to fix a period for the payment b

Under a contract executed on November 1, 2015, D obliged himself to give a specific horse to C on
December 10, 2015. On December 8, 2015, C demanded the delivery of the horse but D did not comply.
The following day, the horse was struck by lightning and died instantly. a. The obligation of D is
extinguished because the loss is due to fortuitous event and D was not in default. b. The obligation of D
is not extinguished because D can deliver another horse. c. The obligation of D is not extinguished
because D was in default. d. The obligation of D is not extinguished because the demand was not made
on due date. a

Which of the following is not considered a conditional obligation? a. D to pay C P5,000.00 as soon as D
has the means. b. D to pay C P5,000.00 if C marries Y. c. D to pay C P5,000.00 if C tops the CPA
Examinations. d. D to pay C if X dies of malaria. a

The distinction between merger and compensation is that in merger: a. The two debts may be payable
at difference places. b. Two persons are in their own right debtors and creditors of each other. c. The
debtor and creditor may agree on the set-off of debts that are not yet due. d. The debtor and the
creditor refer to only one person. d

The passage of time as a mode of acquiring or losing a right including the extinguishment of an
obligation is called: a. remission. b. novation. c. prescription. d. merger. c

Legal compensation shall not be proper in three of the following cases. Which is the exception? a.
Commodatum. b. Civil liability arising from a criminal offense. c. Gratuitous support d. Bank deposit.
d

Cecilia, the owner of a sarisari store, purchased several bags of "Dulcita" candy worth P5,000.00 from
Olga, an authorized dealer of the product. On due date, Cecilia, who sells the candies at P1.00 each,
tendered her payment to Olga consisting of 5,000-pieces of P1.00 coins. a. Olga may refuse to accept the
payment and demand that she be paid in bills. b. Olga may not refuse to accept the payment because
what Cecilia was offering as payment is money circulated in the Philippines. c. Cecilia may consign the
payment in court if Olga refuses accept it. d. The tender made by Cecilia was valid because the P1.00
coins came from her sales and she had plenty of them. a

Dominico and Domingo are jointly and severally liable to Crispino for P100,000.00. The obligation is due
on June 30, 2015. On June 25, 2015, Dominico paid the whole amount of the note to Crispino. If
Domingo reimburses Dominico on July 15, 2015, Dominico is entitled to receive from Domingo a.
P50,000.00 plus interest from June 25 to July 15, 2015. b. P50,000.00 plus interest from June 25 to June
30, 2015. c. P50,000.00 plus interest from June 30 to July 15 2015. d. P50,000.00 with no interest
because Dominico paid the note before due date. c

One of the following statements does not pertain to dacion en pago. Which is it? a. Ownership of the
thing is transferred to the creditor. b. The debtor must be insolvent. c. It does not affect all the
properties of the debtor. d. It does not require plurality of creditors. b

One of the following does not apply to payment by cession. Which is it? a. Ownership of the debtor's
properties is transferred to the creditor. b. The debtor must be insolvent. c. It affects all the properties
of the debtor except those exempt from execution. d. There are several creditors. a

A, B and C are solidarily liable to X for P30,000.00. A pays X the whole amount due. C, however, is
insolvent. a. A alone will bear the share of C who is insolvent since he (A) made the payment. b. A can
collect from B P10,000.00. c. A can collect from B P15,000.00 d. A can demand a refund of P10,000.00
from X pertaining to C's share since C is insolvent. c

Anna Almeda, Belinda Bersola, and Claudia Cabrera executed the following promissory note: "I promise
to pay Dolores Dominguez or order the sum of P30,000.00 on June 30, 2015. (Sgd.) Anna Almeda (Sgd.)
Belinda Bersola (Sgd.) Claudia Cabrera" On June 30, 2015, Dolores Dominguez can collect from Anna
Almeda: a. P10,000.00. b. P30,000.00. c. P20,000.00 d. Nothing, because the note is void since it says "I
promise" but was signed by three persons. b

One of the following is a valid obligation. Which is it? a. D promised to give C P50,000.00 if C will not
swim across the Pacific Ocean. b. D promised to give C P50,000.00 if D goes to Tokyo. c. D promised to
give C P50,000.00 if C can fly to the moon. d. D promised to give C P50,000.00 if C gives him 5 grams of
marijuana. a

An obligation where various prestations are due but the performance of all of them is required in order
to extinguish the obligation is known as: a. alternative obligation. b. facultative obligation. c. conjunctive
obligation. d. simple obligation. c

A, B and C are solidary debtors of X in the amount of P9,000.00. Subsequently, X renounced the share of
A. A accepted the renunciation of his share. On due date, B paid X P6,000.00. B demanded
reimbursement from C but C is insolvent. In this case: a. B may demand the payment of P3,000.00 from
A. b. B may not demand any payment from A because the share of A had already been renounced or
condoned. c. B may demand P1,500.00 from A representing A's share in C's insolvency. d. B may demand
from A P4,500.00 so that their sharing in the total debt is equal. c

D is indebted to C for P20,000.00 which is due on June 10. C owes D P15,000.00 which is due on June 5.
On June 8, C assigned his credit rights to T. D gave his consent to the assignment but did not reserve his
right to the compensation. On June 10, how much may T collect from D? a. P20,000.00. b. P15,000.00. c.
P5,000.00. d. Nothing. a
On May 1, 2015, D executed a written undertaking obliging himself to deliver 100 sacks of rice to C on
May 31, 2015. On May 28, 2015, C demanded the delivery of 100 sacks of rice from D but D did not
comply. The following day, a fire of undetermined origin destroyed D's warehouse together with about
500 sacks of rice stored therein and from which D intended to get 100 sacks of rice for delivery to C. a.
D's obligation to deliver 100 sacks of rice to C is extinguished, the cause of the loss being a fortuitous
event. b. D's obligation to deliver 100 sacks of rice to C is not extinguished because he can get 100 sacks
of rice from other sources. c. D's obligation to deliver 100 sacks of rice to C is not extinguished because
D was in default. d. D's obligation is to pay damages because he was in default. b

On June 1, 2014, Demetrio obtained a loan of P100,000.00 from Cornelio. The loan, which is payable on
or before June 1, 2015, is secured by a chattel mortgage on Demetrio's brand-new Toyota car with plate
number XYZ 123. On February 1, 2015, while Demetrio was opening the trunk of his car at the parking
lot of a grocery store to place the groceries he had just purchased, three unidentified men approached
him and took his car at gunpoint. He reported the carnapping to the authorities but his car has not been
recovered. a. Demetrio may demand immediate payment of loan unless Demetrio gives another security
therefor. b. Cornelio may demand payment only on June 1, 2015 because Demetrio has the benefit of
the period and the loss of the car was due to force majeure. c. Cornelio may no longer demand payment
since the loan was extinguished by reason of the loss of the car due to fortuitous event. d. Cornelio may
demand immediate payment even if Demetrio offers another security because the car is determinate
and could not be replaced. a

The estate of X who died recently, shows, among other documents/contracts, the following: I. A
certificate from Harvard University granting a scholarship to X. X was subjected to exhaustive
examinations and interviews before he was granted the scholarship. He was supposed to start studying
at Harvard in 3 months' time. II. Articles of partnership of XYZ Enterprise showing X as a general partner.
III. A stock certificate of DEF Corporation showing X as the owner of 5,000 shares of stock. IV. A
promissory note amounting to P100,000.00 executed by M in favor of X. The note is due after 90 days.
Which of the rights of X arising from the said documents/contracts will be transmitted to the heirs of X?
a. I and II. b. II and III. c. III and IV. d. I and IV. c

74. The following statements pertain to either payment by cession or dacion en pago. I. The debtor is
insolvent. II. Ownership of the thing/s is transferred to the creditor/s. III. Plurality of creditors is
required. IV. Obligations are totally extinguished as a rule. a. Statement I and IV pertain to payment by
cession. b. Statements I and III pertain to dacion en pago. c. Statements II and IV pertain to dacion en
pago. d. Statements III and IV pertain to payment by cession. c

The return of what has been paid by mistake is known a. solutio indebiti. b. negotiorum gestio. c. quasi-
delict. d. natural obligation. a

Dolores borrowed P15,000.00 from Consuelo. On due date, Dolores was not able to pay but she
promised to give Consuelo a specific ring, a specific bracelet, or a specific necklace, in payment of the
debt. Consuelo accepted the offer of Dolores. What kind of obligation is the new obligation of Dolores?
a. Facultative obligation. b. Compound.obligation. c. Alternative obligation. d. Simple obligation. c
“Dolores borrowed P15,000.00 from Consuelo. On due date, Dolores was not able to pay but she
promised to give Consuelo a specific ring, a specific bracelet, or a specific necklace, in payment of the
debt. Consuelo accepted the offer of Dolores.” How was the obligation of Dolores to pay P15,000.00
extinguished? a. By compensation. b. By novation. c. By confusion. d. By condonation. b

Dolores borrowed P15,000.00 from Consuelo. On due date, Dolores was not able to pay but she
promised to give Consuelo a specific ring, a specific bracelet, or a specific necklace, in payment of the
debt. Consuelo accepted the offer of Dolores.” Assume that before Dolores could deliver any of the ring
bracelet or necklace, the ring and the bracelet were lost successively through the fault of Dolores. In this
case: a. Consuelo may demand the payment of the price or the ring or the price of the bracelet plus
damages or the delivery of the necklace. B. Dolores may deliver the necklace to Consuelo without any
obligation to pay damages. c. Dolores may deliver the necklace to Consuelo with the obligation to pay
damages because the ring and the necklace were lost through her fault. d. Consuelo may demand the
payment of the price of the bracelet which was the last item that was lost, plus damages. b

D obtained a loan of P100,000.00 from C. D used the amount as placement fee for a job in the Middle
East. The loan agreement showed that the loan was payable within one year with interest at 6% per
annum. However, there was no provision saying that the rights and obligations of the parties would be
transmitted to their heirs or successors-in-interest. Before maturity, D died leaving his son S as heir.
Which of the following statements is correct? a. C cannot collect from S because no mention was made
in the agreement between D and C that the rights and obligations of the parties would be transmitted to
their heirs. b. C can collect from S although no mention was made in the agreement that rights and
obligations would be transmitted to the heirs. c. C cannot collect from S because the obligation is
personal to D. d. C cannot collect from S because the law prohibits the transmission of the obligation.
b

Hilario, husband, and Wynona, wife, are legally separated. By order of the court which decreed the legal
separation, Hilario is obliged to give a monthly support of P20,000.00 to Wynona payable in advance
within the first five days of the month. Wynona owes Hilario P20,000.00 by way of loan. On the other
hand, Hilario has not yet given Wynona's support of P20,000.00 for the preceding month and another
P20,000.00 for the present month. All the debts are already due. Based on the foregoing facts, which of
the following statements is incorrect? a. If Wynona demands her support for the preceding month,
Hilario may set up compensation as regards the loan that Wynona owes him. b. If Wynona demands her
support for the current month, Hilario may claim compensation as regards the loan that Wynona owes
him. c. If Hilario demands payment of the loan, Wynone may set up compensation as regards her
support for the preceding month that Hilario owes her. d. If Hilario demands payment of the loan,
Wynona may set up compensation as regards her support for the current month that Hilario owes her.
b

One of the following obligations is not demandable at once. Which is it? a. D to give his car to C. No date
was fixed by the parties for the date of delivery. b. D to give his car to C until C completes his course in
BS Accountancy. c. D to give his car to C until X dies. d. D to give C his car should C enroll in BS
Accountancy. d
D owes C the following debts: P6,000.00 due on January 1; P6,000.00 due on January 15; P6,000.00 due
on January 31; P6,000.00 due on February 15; P6,000.00 due on February 28; and P6,000.00 due on
March 15. All the debts are unsecured except the one due on February 28. The parties stipulated that C
may demand payment on or before the due date of each debt. Assume that today is February 16. D,
however, has not yet paid any of the debts. He has in possession P6,000.00 which he intends to pay to C.
a. D may apply the payment to the debt due on February 28 because it is the most burdensome to him.
b. D may apply the payment to any of the five unsecured debts. c. D may apply the payment to any of
the four debts that have become due as of today, February 16. d. D may apply the payment to all of the
debts that have become due as of today, February 10, proportionately at P1,500.00 each. c

D made a promise to give a ring to C. Before D could deliver a ring to C, C borrowed D's ring. After a
week, D demanded the return of the ring that he had lent to C. C refused to return the ring claiming that
there was compensation between his obligation to return the ring of D and D's obligation to give him a
ring. Based on the foregoing facts, which of the following statements is incorrect? a. C is entitled to
claim compensation. b. C is not entitled to claim compensation. c. D may oppose the compensation
being claimed by C. d. Only D may claim the compensation should C demand the delivery-of a ring from
him (D) a

Maila made a non-negotiable promissory note with Pia as payee. Pia assigned the note to Aiko, Aiko
assigned the note to Bea; Bea assigned the note to Carmina, Carmina assigned the note to Helen, and
Helen assigned it back to Maila. a. Maila's obligation is extinguished by condonation. b. Maila's
obligation is extinguished by confusion. c. Maila's obligation is extinguished by compensation. d. Maila's
obligation is not extinguíshed because the note is not negotiable. b

Lafuente is a lessee of Oberon's building. Under the lease contract, Lafuente must pay the monthly
rental P10,000.00 to Oberon at Oberon's office within the first 5 days of the month in advance. On the
sixth month of the lease, Lafuente went to Oberon's office to pay the rental but he was told by Elcano,
an employee of Oberon, that Oberon was confined at the hospital. Elcano told Lafuente that he could
entrust the payment to him. Santiago, a son of Oberon, who happened to be around, however,
demanded that Lafuente must pay to him claiming that as Oberon's son, he was the one authorized to
receive the payment. Given the situation where you do not know to whom you will modes of payment.
Given the situation where you do not know to whom you will give your payment, which of the following
modes would you avail yourself of if you were Lafuente? a. Dacion en pago b. Payment by cession c.
Consignation d. Application of payment c

D promised to give C 10 sacks of rice when X, C's father, dies. The obligation of D to C is a. An obligation
with a suspensive condition. b. An obligation with a resolutory condition. c. An obligation with a period.
d. A pure obligation. c

D bought a plane ticket for Hong Kong from Wings Travel Company. Later, however, D cancelled his
flight to Hong Kong because of the SARS epidemic in the place. Upon being informed of the cancellation,
Wings Travel told that D could get the refund of his plane ticket within two days. In the mean time, D
thought of going instead to Australia so he called Wings Travel to send to him a ticket for Brisbane
promising to pay the cost of the ticket in two days. Assuming that the refund due to D for his unused
plane ticket to Hongkong is of the same amount as the cost of his plane ticket to Australia, D two days
later need not pay Wings Travel by reason of: a. confusion. B, novation. c. compensation. d.
condonation. c

On a certain year, D was obliged under a contract executed on March 1 to deliver an agricultural land to
C on April 1. D, however, actually delivered the land and the fruits thereof to C on May 1. C had the right
to the fruits of the agricultural land beginning on: a. March 1. b. April 1. c. May 1. d. The period should
be fixed by the court so that it can be determined when C is entitled to the fruits. b

On a certain year, D was obliged under a contract executed on March 1 to deliver an agricultural land to
C on April 1. D, however, actually delivered the land and the fruits thereof to C on May 1. C became the
owner of the agricultural land and the fruits thereof on: a. March 1. b. April 1. c. May 1. d. The period
should be fixed by the court so that it can be determined when C actually became the owner of the
agricultural land and its fruits c

The right of C before the delivery, on one hand, and his right after the delivery, on the other hand, of the
agricultural land and its fruits, to him are referred to as: a. Personal right and real right, respectively. b.
Real right and personal right, respectively. c. Both are considered a personal right. d. Both are
considered a real right. a

Assuming that in “On a certain year, D was obliged under a contract executed on March 1 to deliver an
agricultural land to C on April 1. D, however, actually delivered the land and the fruits thereof to C on
May 1”, D did not deliver the land and its fruits to C. Instead, he delivered the same to X, who was in
good faith when he acquired the land and its fruits, on April 30. a. X is the rightful owner of the land. b. C
is the rightful owner of the land. c. C has a right of action against X. d. C cannot ask for damages against
D. a

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. c

The delivery to the creditor of mercantile documents such as checks shall produce the effect of
payment: a. upon the delivery. b. when they have been cashed. c. when through the fault of the debtor
they have been impaired. d. when they are deposited in the bank. b

Which of 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 it is due c.
Demand, as a rule, is required, in order for delay to exist. d. When time is of the essence of the contract,
delay on the part of the debtor exists despite the absence of demand. b
When the debtor and the creditor agree to a dacion en pago (transfer of ownership of property to the
creditor to settle a monetary obligation), before such transfer of ownership, there is actually a.
compensation. b. confusion. c. condonation. d. novation. d

The delivery of mercantile documents such as checks will produce the effect of payment: a. when
through the fault of the creditor they have been impaired. b. upon delivery of the mercantile document.
c. when they are certified by the bank. d. when they are presented to the bank for payment. a

XYZ is a cooperative store. On July 1, 2014, 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. The Government is exempt from giving tax refunds b

S sold 100 bottles of imported "Fundador" brandy to B who paid immediately the price thereof
amounting P20,000.00. S promised to deliver the brandy to B within one week from their agreement. On
the agreed date of delivery, S delivered to B 100 bottles of fake "Fundador" brandy. The contract
between S and B is: a. voidable. b. void. c. valid. d. rescissible c

D obtained a loan from C amounting to P50,000.00 which is payable in 10 equal monthly installments.
The loan bears interest of 1% per month which D agreed to give to T, a student whom C is sending to
school. To secure the loan, D executed a chattel mortgage on his car. Although D has been paying the
monthly interest to T, D could not pay any of the installments due. In view thereof, D proposed, and C
accepted, that D should give instead a diamond ring to C in place of the loan of P50,000.00 within two
months from their new agreement. T, however, was not notified of the new obligation. Based on the
foregoing facts, which of the following statements is incorrect? a. D's obligation to give C P50,000.00 is
extinguished by novation. b. The accessory contract of chattel mortgage is extinguished by the new
agreement between D and C. c. T is a party to the original agreement between D and C. d. The new
contract did not extinguish D's liability to pay interest to T. c

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 communicated. d

D borrowed P5,000.00 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 check which is certified by the bank to supported 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 P1,000.00 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 250 pieces of P20.00 bills.
d
Which of the following condonations will not extinguish the debtor's obligation? a. The condonation is in
a public instrument. The acceptance is made orally.. The condonation a involves computer printer
whose value is P4,000.00. b. The condonation and the acceptance are in a public instrument. The
condonation involves a parcel of land. c. The condonation and the acceptance are made orally with the
creditor delivering to the debtor simultaneously the promissory note amounting to P10,000.00. d. The
condonation is in a public instrument. The acceptance is made in a private instrument. The condonation
involves television set worth P20,000.00 c

In which of the following independent cases is the payor of the debtor's debt not subrogated to the
rights of the creditor? a. D owes C P10,000.00. The debt is secured by a pledge of D's ring to C. D also
owes X, P8,000.00. X pays C P10,000.00 without the knowledge of D b. D owes C P10,000.00. The debt is
secured by a pledge of D's ring to C. X pays C P10,000.00 with the consent of D. c. D owes C P10,000.00.
The obligation is guaranteed by G. G pays C P10,000.00 without the knowledge of D. d. D owes C P 10,
000. The obligation is guaranteed by G. X pays C P 10, 000 without the knowledge of D. d

S sold his only horse to B for P10,000.00 cash. The parties agreed that S shall deliver the horse within
one week from their agreement. Nothing is mentioned in the agreement on how the horse will be cared
for by S before delivery. a. S must take care of the horse with the diligence of a good father of a family
before delivery. b. S need not take care of the horse because nothing was mentioned in the agreement
on how the horse will be cared for. c. S must take care of the horse with extraordinary diligence. d. The
absence of a stipulation on how the horse must be cared for renders the sale void because such
stipulation is an essential element of the contract. a

D owes C the following debts: P3,000.00 due on August 10; P3,000.00 due on August 15; P3,000.00 due
on August 20; and P3,000.00 due on August 25 which is secured by a pledge of D's ring. If today is
August 22, and D pays C P3,000.00 with neither D nor C designating the debt to which the payment shall
apply, the payment shall be applied: a. To the debt due on August 10, following the "first- due, first-pay"
basis. b. To the debts due on August 10, August 15, and August 20, proportionately at P1,000.00 each. c.
To the debt due on August 25, since it is the most onerous to D. d. To all the debts proportionately at
P750.00 each. b

M executed a promissory note payable to P for P 100,000.00. The note, which bears interest at 2%
month, is payable after 60 days. On the date of maturity, P proceeded to M's place to collect but when
M demanded the presentation of the promissory note, P could not present it claiming that it had been
lost. M is able and willing to pay the whole amount due including the interest but he is at a loss on what
to do because P does not have the instrument. On the other hand, if he does not pay the amount due,
the interest on the principal will continue to accrue. If you were M, the remedy that you will likely avail
yourself of is: a. dacion en pago. b. payment by cession. c. consignation. d. application of payment.
c

A, B, C and D owe X, Y and Z the sum of P12,000.00. Based on the foregoing data, which of the following
statements is incorrect? a. The obligation is joint. b. There are 7 distinct debts in the obligation. C. Each
debtor is liable only for a total P3,000.00. d. Each creditor is entitled to collect a maximum of P4,000.00.
b

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 any amount because no ticket was issued. a

One of the following obligations is void. Which is it? a. D to give C P50,000.00 if C does not run 100 miles
without stopping. b. D to give C P50,000.00 when D has the means. c. D to give C P50,000.00 if D buys a
brand-new car. d. D to give C P50,000.00 if C runs for barangay chairman next year. c

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, 2015. b. D to allow C to use D's car until C finishes his course in Accounting. c.
D to give C 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. c

On January 1, 2014, D obtained a loan of P100,000.00 from C. The loan is secured by a chattel mortgage
on D's car and is payable on December 31, 2014. On September 26, 2014, the car was taken at gunpoint
from D while he was starting its engine at the parking lot of a department store. a. D's loan obligation is
extinguished. However, D must give a property which C may sell to satisfy his claim. b. D's loan
obligation subsists. However, C may demand its immediate payment unless D gives another security. c.
D's loan obligation subsists. However, C may not demand immediate payment since the loss of the
security was without the fault of D. D, moreover, is not required to give a new security. d. D's loan
obligation is extinguished together with the mortgage since the loss of the car was without the fault of
D. b

A and B are the owners of adjacent poultry and piggery farms. One day, B got sick and failed to visit his
farm. When A noticed that B was not again around during the second day, he himself took care of the
animals by feeding them and cleaning the pig and poultry pens. A did this for the next three days until B
returned. A incurred necessary and useful expenses amounting to P5,000.00 in the process. Under the
circumstances, B is obliged to reimburse A for such expenses which the latter incurred by reason of: a.
contract. b. solutio indebiti. c. negotiorum gestio. d. quasi-delict. c

D has a savings deposit with XYZ Bank in the amount of P20,000.00 which D may withdraw anytime from
the bank. He also has a loan obligation to XYZ bank amounting to P20,000.00 which has become due. D
wants to withdraw his savings deposit but XYZ Bank informs D that it has claimed compensation of D's
deposit and his loan obligation. a. Both and XYZ Bank may claim compensation. b. Neither D nor XYZ
Bank may claim compensation. c. Only D may claim or oppose compensation. d. Only XYZ Bank may
claim or oppose compensation. a

Which of the following is an indivisible obligation? a. To give a rendition tonight of Handel's "Messiah" in
a concert at the Folk Arts Theater. b. To construct a pavement measuring 2 meters wide and 10 meters
long. c. To lecture for 5 Saturdays in a tax seminar. d. To pay a loan obligation of P100,000.00 in 10-
equal monthly installments. a

Devera obtained a loan of P50,000.00 from Centeno who is engaged in the business of financing. The
written contract of the parties provides that the loan shall bear interest of 12% per annum and shall be
paid in full together with the interest at the end of 12 months at Centeno's business office. On due date,
Devera proceeded to Centeno's business office to pay his debt but the place was padlocked and showed
no signs that it had been occupied for some time. Devera is now at a loss on what to do as Centeno did
not forward his present address to him. Devera does not want to have any outstanding obligation at the
end of the year and incur further interest. Which course of action will you recommend to Devera? a.
Tender of payment b. Compensation c. Consignation d. Application of payment c

D borrowed P100,000.00 from C. The parties agreed at the time the obligation was constituted that
should D so desire, he may give his agricultural land to C by way of dacion en pago to pay his loan
obligation on due date. The obligation of D to C is: a. a conjunctive obligation. b. a simple obligation. c.
an alternative obligation d. a facultative obligation. d

One of the distinctions between a facultative obligation and an alternative obligation is that in an
alternative obligation: a. Only one thing is principally due. b. The right of choice belongs to the debtor
alone. c. If the obligation to 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. d

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 death d. D has no liability to C whatever may be the cause of the death of the carabao because his
obligation of the carabao to return the carabao was due to an order of the court and not on his own
volition. c

Under a contract between D and C, D is obliged to deliver 10 bags of detergent soap to C 10 days after
the execution of their agreement. On due date, D delivered to C 10 bags of detergent soap which he
mixed with chalk. a. The contract entered into between D and C is voidable because of the fraud
employed by D. b. The contract is valid. The fraud employed by D does not affect the validity of the
contract but D is obliged to pay damages to C. c. The contract is void because of the fraud employed by
D in the performance of his obligation. d. The contract is rescissible because of the damages suffered by
C. b

D obtained a loan from C in the amount of P50,000.00. Unable to give cash on due date in payment of
his loan obligation, D proposed to C that he would be giving instead his diamond ring to settle his debt. C
agreed and accepted the ring from D. The new agreement between D and C involved both: a. Novation
and application of payment. b. Novation and dacion en pago. c. Compensation and payment by cession.
d. Confusion and tender of payment b
Salas and Bersamin entered into a contract whereby Salas would deliver 5 pieces of genuine Rolex
wristwatches to Bersamin. Salas proposed to Bersamin that should Salas deliver 5 units of fake pieces of
Rolex wristwatches by reason of financial difficulties on his part, Bersamin would not sue him for
damages on the ground of fraud. Bersamin accepted the proposal. On due date, Salas delivered 5 pieces
of fake Rolex wristwatches. Upon discovery of the fraud, Bersamin sues Salas for damages. Salas
contends that he cannot be held liable for damages because Bersamin waived his right to hold him
(Salas) liable on the ground of fraud if the reason thereof is the financial difficulties of Salas. a. Bersamin
cannot sue Salas for damages because the reason for the waiver is valid, i.e., financial difficulties of
Salas, which is a valid reason for the a. waiver. b. Bersamin can sue Salas for the annulment of the
contract since it is voidable. c. Bersamin can sue Salas for damages because the waiver he made is void.
Nonetheless, the contract is valid. d. Bersamin can sue Sales for the rescission of the contract since it is
rescissible. c

B ordered 10 boxes of "X" shirts worth P2,000.00 per box from S paying immediately the total price of
P20,000.00. While inspecting the goods after their delivery to his store, B discovered that one box was
missing. Upon being informed, S apologized for the error and promised to refund the price of P2,000.00
within three days as there was no more stock of "X" shirts available. In the meantime, B ordered and
received from S one box of "Y" shirts which was also worth P2,000.00 promising to pay the same within
three days. On the third day, assuming that S had not yet refunded the price of the undelivered "X"
shirts to B, B need not pay S the price of "Y" shirts by claiming: a. consignation. b. compensation. c.
condonation. d. novation. b

The following are obligations with a term or period, except: a. D to give C P50,000.00 on December 1,
2015. b. D to give C P50,000.00 on Christmas day next year. c. D to give C P50,000.00 upon the death of
C's father . d. D to give C P50,000.00 if C's father dies within 2 years. d

A, B and C are liable in solidum to X for P12,000.00. X renounced the share of A who accepted it. Later, B
becomes insolvent. a. X can collect from C P8,000.00. b. X can collect from C P4,000.00. c. X can collect
from C P12,000.00. d. X can collect nothing from C. a

Ace Realty -Company (Ace) ordered 6 units of "Borden typewriters from Central Office Machines
(Central) at the price of P8,000.00 per unit. However, Central delivered Ace 6 units of "Remington"
typewriters, a superior brand which was priced at P8,500.00 per unit. Central informed Ace that it will
bill the latter for the "Remington" typewriters at P8,000.00 only. Ace refused to accept the "Remington"
typewriters. a.Central can compel Ace to the accept the "Remington" typewriters since they are of
superior quality. b. Central cannot compel Ace to the accept the "Remington" typewriters although they
are superior quality. c. Central can compel Ace to accept the "Remington" typewriters since Ace is
required to pay only the price of "Borden" typewriters. d. Central can compel Ace to accept the
"Remington" typewriters since all that is required of Central is to deliver a typewriter that can perform
the same function as the one that was ordered b

Prime Engineering Review Center (PERC) stated in the leaflets it distributed last January that any
reviewee who places first in the licensure examinations for engineers this year will receive a cash prize
of P150,000.00. a. The obligation of PERC is subject to a suspensive condition. b. The obligation of PERC
is subject to a resolutory condition. c. The obligation of PERC is a pure obligation. d. The obligation of
PERC is an obligation with a suspensive period. a

Three of the following statements pertain to natural obligation. Which one does not? a. It is not
enforceable in a court of justice. b. Obligation exists by reason of equity and moral justice. c. If
performed voluntarily, recovery can no longer made. d. There is juridical necessity to perform it. d

D has a grains warehouse in Davao, while C has a grains warehouse in Cebu. D borrowed 10 sacks of rice
worth P10,000.00 from C for D's customer in Cebu. Later, C borrowed 10 sacks of rice which was also
worth P10,000.00 from D for C's customer in Davao. Both the obligations are already due. Transport
costs to Davao amount to P1,000.00, while those for Cebu amount to P800.00. a. D and C need not pay
each other since their debts compensated each other. b. D. and C need not pay each other since their
debts compensated each other, except for the delivery charges which C must pay to D in the amount of
P200.00 (P1,000.00 less P800.00). C c. Compensation cannot take place because the debts are payable
at different places. d. D must pay C P10,800.00, while C must pay D P11,000.00. b

D owes C P20,000.00 due on March 25. C, on the other hand, owes D the following debts: P8,000.00 due
on March 1, P3,000.00 due on March 8, P5,000.00 due on March 14, and P2,000.00 due on March 24.
On March 18, C assigned his credit right to T without informing D who learned of the assignment on
March 20. On March 25, T may collect from D: a. On March P20,000.00. b. P2,000.00. c. P4,000.00. d.
None, because the assignment made by C was without the knowledge of D c

D owes C P20,000.00 due on March 15. C, on the other hand, owes D. the following debts: P8,000.00
due on March 1, P3,000.00 due on March 8, P5,000.00 due on March 14. On March 12, C assigned his
right to T with notice to D but with D not giving his consent to the assignment. On March 15, T can
collect from D: a. P20,000.00. b. P9,000.00. c. P4,000.00 D. None, because the assignment made by C
was without the consent of D. b

On December 1, 2014, Miss Santos, a professor of Manila College, engaged the services of Lepanto
Transport to bring her class to Calamba, Laguna in time for the Rizal Day celebration on December 30,
2014 which would start at nine o'clock in the morning. The contract signed by the parties specified that
a bus would be in the school premises at six o'clock in the morning and would leave at exactly 6:30 a.m.
However, Lepanto Transport failed to send a bus on the date, time and place agreed upon. As a result,
Miss Santos and her class failed to attend the celebration. Ms. Santos sued Lepanto Transport for
damages on the ground of delay in the performance of its obligation. For its defense, Lepanto Transport
claimed there was no delay because Miss Santos never made a demand. a. There was no delay because
Miss Santos did not make any demand. b. Lepanto Transport was in delay since demand was not
required. c. Miss Santos should have obtained the services of another company when the bus of Lepanto
Transport did not arrive. d. Miss Santos should have reminded Lepanto Transport from time to time
before the due date of its obligation to provide for a bus. b

Leveriza, the owner of an apartment, leased the premises to Toribio. The terms of the lease provide for
a monthly rental of P6,000.00 which Toribio must pay at the residence of Leveriza about two blocks
from the apartment. For the month of December, Toribio went to the residence of Leveriza but the
latter was not around to receive the payment. Not wanting to go back, Toribio left the payment with
Nograles, a neighbor of Leveriza, who promised to give the payment to Leveriza. However, Nograles
spent the amount he received for himself. Based on the foregoing facts, which of the following
statements is incorrect? a. The payment by Toribo to Nograles is valid since the latter is the neighbour of
Leveriza. b. The payment by Toribo is not valid because Nograles was not authorized to received the
payment. c. Leveriza can demand payment from Toribo for the December rental d. Toribo can go after
Nograles for the amount misspent by Nograles. a

D owes the following creditors: X, P20,000.00; Y. P30,000.00; and Z, P50,000.00. D is insolvent so he

On May 31, 2014, D promised to give a specific house and lot to C if C passes the Bar Examination. On
September 24, 2014, C took the Bar Examination. The result of the Bar Examination which C took was
released on March 26, 2015 and C passed it. C shall be entitled to the house and lot: a. On May 31, 2014
b. On September 24, 2014 c. On March 26, 2015 d. When he received his rating. a

A and B are indebted to X and Y for 10,000.00. A and B share in the debt in the ratio of 1:3; while X and Y
are in the credit in the ratio of 2:3. How much may X collect from A if the debtors are joint debtors,
while the creditors are joint creditors? a. P10,000.00. b. P2,500.00. c. P4,000.00. d. P1,000.00. d

A and B are indebted to X and Y for 10,000.00. A and B share in the debt in the ratio of 1:3; while X and Y
are in the credit in the ratio of 2:3. How much may X collect from A if there is active solidarity? a.
P10,000.00. b. P2,500.00. c. P4,000.00. d. P1,000.00. b

A and B are indebted to X and Y for P10,000.00. A and B share in the debt in the ratio of 1:3; while X and
Y share in the credit in the ratio of 2:3. How much may X collect from A if there is passive solidarity? a.
P10,000.00. b. P2,500.00. c. P4,000.00. d. P1,000.00. c

A, B and C are solidary debtors of X, Y and Z., solidary creditors, in the amount of P2,700.00. X renounces
the whole obligation without the consent of Y and Z. The debtors accepted the renunciation. a. . The
whole obligation is extinguished. b. Only P900.00 is extinguished. c. No part of the obligation is
extinguished because not all the creditors consented to the renunciation d. Only P300.00 is
extinguished. a

A, B and C are solidary debtors of X in the amount P3,000.00, X renounces the share of A and A accepts
renunciation. Thereafter, B becomes insolvent. Ultimately: a. C alone will shoulder the balance of
P2,000.00 b. A will shoulder P500.00, while C will shoulder P1,500.00. c. C will shoulder only his share of
P1,000.00. A will no longer shoulder any amount since his share was already renounced by X. d. A will
shoulder P1,000.00, while C will shoulder P1,000.00, for the remaining balance of P2,000.00. b

A, B and C are obliged to deliver a specific horse to X, Y and Z. a. A demand made by X against A, B and C
is a valid demand against all the debtors. b. A demand made by X, Y and Z against A is a valid demand
against all the debtors. c. If a valid demand is made against all the debtors but debtor C cannot comply
with his part of the obligation, the obligation is converted into a monetary obligation to pay the value of
the horse plus damages. d. If the debtors default in their obligation because C is insolvent, A and B will
be liable for C's share of the obligation c

O was cleaning the glass window of his building when a large piece of broken glass fell down directly
hitting the roof of a car which was parked below. C, the owner of the car, was not around. Sensing that
he would be made liable for the damage on the car, 0 immediately went down and cleaned the mess. 0,
seeing that W had witnessed all that happened, proposed to give W P2,000.00 so that W would not
testify in case a court case is filed. W agreed to the proposal and accepted the money. Based on the
foregoing facts, which of the following statements is incorrect? a. O's liability, if any, is based on quasi-
delict. b. The agreement between 0 and W is binding on both of them. c. W may testify in court despite
the agreement. d. The agreement between O and W is void b

A, B, and C are solidary debtors of X and Y for P30,000.00, joint creditors. a. X may collect P30,000.00
from either A, B or C. Thereafter, he must give to Y P15,000.00 representing the share of Y. b. X may
collect P30,000.00 from the debtors but not more than P10,000.00 from each of them. Thereafter, he
must give to Y P 15,000 representing the share of Y. c. X may collect P15,000.00 from either A, B or C.
Thereafter, he is not obligated to give any amount to Y d. X may collect P15,000.00 from the debtors but
not than P5,000.00 from each. Thereafter, he is not obligated to give any amount to Y c

S, a supplier of fresh fish from Lucena City, hired T, the owner of a trucking company, for a fee of
P3,000.00 to bring the fish catch of S to the Dampa Market in Paranaque City which ordered the fish for
a price of P20,000.00. 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 P3,000.00. d. the payment of P20,000.00. c

“S, a supplier of fresh fish from Lucena City, hired T, the owner of a trucking company, for a fee of
P3,000.00 to bring the fish catch of S to the Dampa Market in Paranaque City which ordered the fish for
a price of P20,000.00.” In the contract between S and T: 1 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. c

D obtained a loan of P200,000.00 from C. Not having any cash on due date when C visited him to
demand payment D offered to C to accept, at C's choice, either D’s necklace, diamond ring, or a parcel of
land, all of which D showed to C. C accepted the proposal, but requested that he be given one week to
decide which item to take. Before the week was over, however, armed men forcibly took the necklace
and diamond ring from D's house. a. D's obligation become a simple obligation to deliver the parcel of
land. b. D's obligation to give P200,000.00 is revived because C was deprived of his right to choose c. D’s
obligation to give P 20,000 was extinguished by personal novation. d. D's obligation is now to give the
parcel of land or P200,000.00, at C's option. a

The following are characteristics of a facultative obligation, except: a. Only one thing is principally due.
b. The right of choice cannot be given to the creditor. c. The debtor must give the substitute in case the
principal thing is lost due to the debtor's fault before substitution. d. If the principal is void, the debtor is
not obliged to give the substitute. c

D owes C the following debts: P5,000.00 due on January 1; P7,000.00 on January 5; P8,000.00 due on
January 10; P10,000.00 due on January 15; and P5,000.00 due on January 20. By agreement of the
parties, D was given the benefit of the period. As of January 17, D has not paid any of the debts. He has
P5,000.00 which he wants to remit to C. a. D may apply the payment to any of the five debts. b. D may
apply the payment to any of the four debts that have become due as of January 17. c. D may apply the
payment either to the debt due on January 1 or January 20. d. D may apply the payment only to the
debt due on January 1. c

“D owes C the following debts: P5,000.00 due on January 1; P7,000.00 on January 5; P8,000.00 due on
January 10; P10,000.00 due on January 15; and P5,000.00 due on January 20. By agreement of the
parties, D was given the benefit of the period. As of January 17, D has not paid any of the debts. He has
P5,000.00 which he wants to remit to C.” Assume that D did not designate the debt to which the
payment shall apply. In this case: a. C may apply the payment to any of the five debts. b. C may apply the
payment to any of the four debts that have become due as of January 17. c. C may apply the payment
either to the debt due on January 1 or January 20 only since the amount of the payment is the same as
the amount of each debt. d. C may apply the payment to the debt due on January 1 only. b

“D owes C the following debts: P5,000.00 due on January 1; P7,000.00 on January 5; P8,000.00 due on
January 10; P10,000.00 due on January 15; and P5,000.00 due on January 20. By agreement of the
parties, D was given the benefit of the period. As of January 17, D has not paid any of the debts. He has
P5,000.00 which he wants to remit to C.” Assume that D did not designate the debt to which the
payment shall apply. Assume the creditor did not also designate the debt to which the payment shall
apply. In such a case: a. Payment shall be applied proportionately to the five debts. b. Payments shall be
applied proportionately to the four debts that have become due as of January 17. c. Payment shall be
applied only to the debt due on January 1 since it is the first debt that has become due. d. Payment shall
be applied proportionately to the debt due on January 1 and January 20 since the amount of each debt
is of the same amount as the payment. b

Dacion en pago and payment by cession are special forms of payment. They are similar in which of the
following respects? a. On the number of creditors involved. b. On the extent of the properties involved
in the payment. c. On the purpose of the payment. d. On whether the debtor is released completely
from his obligation/s. c

D is debited to C for P 52,000.00. On due date, D tendered payment amounting to P 52, 000.00 which
consist of the following: 47 pieces of P 1,000.00 bills for a total of P 47, 000.00; and 250 pieces of P
20,000.00 bills for a total of P 5,000.00. C refused to accept the payment and demanded that D make his
payment all in P 1,000 bills since, according to him, the P 20.00 bills were too bulky and inconvenient for
him to carry. a. D may consign the payment since the refusal by C to accept the payment was not
justified. b. C’s reason for refusing to accept the payment was justified. Hence, D cannot consign the
payment. c. D cannot compel to C to accept the payment he was offering because a debtor myst make
his payment according to the wishes of his creditor. d. D may make his payment in check and compel to
accept the payment since this form is the most convenient for C. a

Which of the following is a characteristic of expromission but not of delegacion? a. It is made with or
without the consent of the debtor. b. The third person who makes the payment to the creditor is always
entitled to subrogation. c. In case of insolvency of the new debtor; the creditor may still recover from
the original debtor under certain circumstances. d. It is initiated by the debtor himself. a

D, a depositor of ABC Bank, visited the branch of the bank at Espana Boulevard to withdraw from its
automated teller machine (ATM). After pressing correctly the amount of P 500.00, the machine
dispenced 10 pieces of P500.00 bills or a total of P 5,000.00. The receipt released by the ATM showed
that only P 500.00 was withdrawn. a. D does not have to return the excess of P 4,500.00 because it was
not his fault that the ATM would dispense more than what he wanted to withdraw. b. D does not have
to return the excess of P 4, 500.00 because the receipt did not indicate that the said amount was
withdrawn. c. D must return the excess of P 4,500.00 because it was a case of payment that was not
due. d. D must return the excess of P 4,500 because the bank will likely discover that he was the one
using the ATM when the overpayment was made. c

D is indebted to C in the amount of P 100,000.00. The debt is secured by a mortgage of the lot of D and
the guaranty by G. G, without informing D, paid the total amount of the loan to C. a. G cannot collect
from D. He cannot also foreclose the mortgage. b. G can collect from D. However, if D cannot pay, G
cannot foreclose the mortgage. c. G can collect from D. If D cannot pay, G can foreclose the mortgage. d.
G cannot collect from D. However, G can foreclose the mortgage. c

A, B, and C are liable to X in the amount of P 30,000.00. The debt is evidences by a promissory note
which reads “ I promise to pay X or order P 30,000.00”. The note is signed by A, B, and C. X indorsed the
note to Y, Y to Z, and Z to A for merchandise Z bought from A. a. The obligation under the note us totally
extinguished. b. The obligation under the note is extinguished only up to P 10,000. c. The obligation
under the note is extinguished only up to P 20,000.00 d. No part of the obligation is extinguished.
a

When two persons are claiming the same right to collect from you and you are in doubt as to whom you
will give your payment, your remedy so that you will not pay to the wrong person is: a. Tender of
payment b. Application of payment c. Dacion en pago d. Consignation d

When two persons are claiming the same right to collect from you and you are in doubt as to whom you
will give your payment, your remedy so that you will not pay to the wrong person is: a. Tender of
payment b. Application of payment c. Dacion en pago d. Consignation b
. A and B are joint debtors of W, X, Y and Z, solidary creditors, in the amount of P 20,00.00. In this case:
a. W can collect from either A or B P20,00.00. Then W must give P5,000.00 each to X, Y and Z. b. W can
collect only the maximum amount of P10,000.00 each from A and B. If W is able to collect P10,000.00
from A, W must give P2,500.00 each to X, Y and Z. If W is able to collect P10,000.00 from B, W must give
P2,500.00 each to X, Y and Z. c. W can collect only the amount of P5,000.00 from either A or B. When he
collects the said amount, W does not have too give the amount of P1,250.00 each to X, Y and Z. D. W
can collect only the maximum amount of P2,500.00 each from A and B. When he collects the total
amount of P5,000.00, W does not have to give the amount of P1,250.00 each to X, Y and Z. b

D owes C P6,000.00 which is due on January 10, and another debt of P12, 000.00 which is due on
January 20. Both debt are unsecured and non-interest bearing and are already due. D, however, has only
P3,000.00 which he gives to C without informing C as to which debt the payment shall apply. C also does
not indicate on the receipt he issued to D to which of the two debts the payment shall apply. In this
case: a. The payment of P3,000.00 shall be applied to the debt due on January 10 because it was the first
to became due. b. The payment of P3,000.00 shall be applied to the debt due on January 20 because it is
of a greater amount. c. Payment cannot applied to either of the two debts because it is incomplete. d.
The payment of P3,000.00 shall be applied proportionally in the amount of P1,000.00 to the debt due on
January 10, and P2,000.00 to the debts due on January 20. d

D obtained a loan of P500, 000.00 from C on January 1, 2014. The loan, which D has the option of paying
on or before December 31, 2014, is secured by a building owned by D and bears interest of 1% per
month. On June 30, 2014, the building was razed in a fire without the fault of D. a. C may demand
immediate payment of the loan from D on June 30, 2014 since the security therefor was lost, unless D
gives another security. b. C may not demand immediate payment of the loan from the D because the
loss of the building was due to fortuitous event. c. C may demand payment of the loan form D only on
December 31, 2014 because the benefit of the period was given to D who was given the option to pay
on or before the due date. d. C may no longer demand payment since the loan was extinguished by
reason of the loss of the building. a

Mario Marquez executed a promissory note which reads as follows: “I promise to pay to the order of
Pablo Perez the sum of P50,000.00 on January 31, 2016” (Sdg.) Mario Marquez – Marker (Sdg.) Gilbert
Garcia – Guarantor Pablo Perez indorse the note to Alfonso Abad, Alfonso Abad to Benito Buenviaje,
Benito Buenviaje to Carlos Cuaresma, and Calos Cuaresma to Gilbert Guarcia. The negotiation of the
note to Gilbert Garcia produced to effect of: a. Extinguishing both the loan and the guaranty. b.
Extinguishing the loan but not the guaranty. c. Extinguishing the guaranty but not the loan. d. Neither
extinguishing the loan nor the guaranty. c

D borrowed P50,000.00 from C. On due date, D did not have any money to pay the debt so he proposed
to C that the latter accept a ring to settle the debt. C accepted the proposal and received the ring.
Immediately after receiving the ring, C sold it to B. D’s obligation to give P50,000.00 to C is extinguished
by: a. dacion en pago b. payment by cession c. sale d. application of payment a
D is obliged to deliver a specific Toyota car to C. The parties agreed that should D so desire, he may
deliver his only Lancer car to C as a substitute. Before D could make any substitution, the Lacer car was
damage beyond repair through the fault of D. a. D’s obligation to deliver the Toyota car is extinguished
b. D is obliged to pay damages to C for the loss of the Lancer car. c. D is still obliged to deliver the Toyota
car to C on due date. d. D is obliged to get another Lancer car as a substitute. c

D is obliged to delilver either a specific bracelet, a specific necklace, or a specific ring to C. No mention
was made in the agreement of the parties as to who has the right of choice. Before due date, C wrote D
informing the latter that he (C) preferred that the ring be delivered to him. D received the letter but did
not give any response to C. Subsequently, the ring was lost through a fortuitous event. a. D’s obligation
to C is extinguished by fortuitous event. b. D is obliged to pay damages to C because he was in default
when he did not respond to the letter. c. D’s obligation is not extinguished as he may deliver either the
bracelet or the necklace. d. D’s obligation became a simple obligation when C informed D of his (C’s)
preference on the object to be given to him. c

D, a professional singer, agreed to sing for a fee of P20,000.00 at the birthday party of C who was a fan
of D. Due to numerous commitments, D could not go to the party of C . So he sent X, another
professional singer who was known to sing better than D, to sing at C’s party, and informed C that the
latter needed to pay only P10,000.00. a. D may validly assign his obligation to sing because the reduced
fee was advantageous to C. b. D may validly assign his obligation to sing because X could perform the
obligation better than him. c. D may not validly assign his obligation to sing because it is personal nature.
d. C cannot refuse the performance of the obligation by C because the obligation to sing is transmissible
since it would not require much effort on the part of either D or X who are both professional singers.
c

D received a check for P5,000.00 drawn against ABC Bank in payment of a debt due to him. Upon
cashing the check, D requested the teller to give him 10 pieces of P500.00 bill and to place money in an
envelop. As he was in a hurry, D left the bank without bothering to count the cash. Shortly after reaching
his office, D counted the money in the envelop and discovered that it contained 10 pieces of P1,000.00
bill or an excess of P5,000.00. a. D does not have the obligation to return the excess of P5,000.00
because it was not his fault that the teller would pay him an amount in excess of what was stated in the
check. b. D does not have the obligation to return the excess of P5,000.00 because the bank will not
likely to know who among the bank clients received such excess amount. c. D must return the excess of
P5, 000.00 because he has the obligation to do so under the principle of solutio indebiti. d. D must
return the excess of P5, 000.00 because he has the obligation to do so under the principle of negotiorum
gestio. c

The following condonations are presented to you for evaluation: I. A condonation involving a debt of an
immovable property which was embodied in a private instrument together with the acceptance there
of. II. A condonation involving a money debt of P6,000.00 made and accepted orally with the creditor
making a simultaneous delivery to the debtor of the promissory note evidencing the credit. In your
evaluation of the above condonations, the obligation is: a. extinguished in both I and II. b. extinguished
in I only. c. not extinguished in either I or II. d. extinguished in II only. c
The following cases are presented to you for evaluation: I. D is obliged to deliver a specific computer to
C. Before the scheduled delivery, the computer was lost in fire through no fault of D. II. D is obliged to
deliver 10 sacks of rice to C. Before the scheduled delivery, the warehouse of D containing 500 sacks of
rice from which D intended to get 10 sacks of rice for delivery to C, was razed in a fire together with the
stock of rice through no fault of D. In your evaluation of the above cases, the obligation is extinguished
by loss in: a. Both I and II b. Neither I nor II c. I only d. II only c

Which of the following obligations is void? a. D agreed to hire C as a manager of his (D’s) business if C is
willing to relocate to Cube. b. D agreed to paint the portrait of C if D will enrol in a painting class this
upcoming month. c. D promised to pay his debt to C amounting to P20,000.00 as soon as possible d. D
agree to give a monthly support of P5,000.00 to C until D ends his contract of employment overseas.
b

D owes P50,000.00. The obligation is secured by the guaranty of G and a real mortgage on D’s lot.
Subsequently, G without the knowledge of D, paid C the amount of P50,000.00 a. G can go after D to
collect and if D cannot pay, G can foreclose the mortgage because he is entitled to subrogation. b. G can
go after D to collect and if D cannot pay, G can foreclose the mortgage because he is entitled to
compensation. c. G can go after D to collect and if D cannot pay, G can foreclose the mortgage because
he is entitled to condonation. d. G can go after D to collect but he is not entitled to any other rights
because the payment he made to C was without the knowledge of D. a

One peso, P5.00 and P10.00 coins are legal tender up to: a. P100.00 b. P500.00 c. P1,000.00 d. Any
amountc

One centavo, P0.05, P0.10 and P0.25 centavo coins are legal tender up to: a. P100.00 b. P 500.00 c.
P1,000,00. d. Any amount a

All the bills are legal tender up to: a. P5,000.00 b. P10,000.00 c. P100,000.00 d. Any amount d

D obtained a loan of P5,000.00 from C. On due date, D tendered payment amounting to P5,000.00
consisting of 5,000 pieces of P1.00 coin. a. The payment offered by D is legal tender. b. C may not refuse
to accept the payment c. Should C refuse to accept the payment, D may resort to consignation (deposit
of the payment in court). d. C may demand payment that be paid in bills. d

D is obliged to deliver 20 sacks of “Dinorado” rice to C. The parties agreed that should D fail to perform
his obligation as stipulated, D will pay a penalty of P1,000.00. On due date, D made a delivery of 20 sacks
of rice but each sack contain a mixture of “Dinorado” rice and another variety of lower quality. C
discovered the fraud. a. C may demand the payment of the stipulated penalty only. b. C may demand
the payment of the stipulated penalty as well as damages although there was no stipulation on the
latter. c. C may demand the payment of damages in addition to the stipulated penalty only if there was a
stipulation with respect to damages. d. C may demand the payment of damages in addition to the
stipulated penalty only if D refuses to pay the penalty. b
D obtained a loan of P50,000.00 from C. The loan was evidenced by a promissory note executed by D
which said nothing about the transmissibility of the loan obligation or the right to collect it. A month
before due date of the loan, C died leaving S, his son, as heir. On due date, S presented the promissory
note to D for payment, but D refused claiming that he owed C but not S. a. D may refuse to pay because
the right to collect belonged only to C. b. D may not refuse to pay because the right of C to collect was
transmitted to S who was the heir of C notwithstanding the absence of an agreement to that effect. c. D
may refuse to pay because there was no stipulation that right to collect the loan would be transmitted
to C’s heirs. d. D may refuse to pay because the transmission of the credit right is prohibited by the law.
b

These statements are presented to you: I. Several prestations are due but all must be performed to
extinguished the obligation. II. If there are void prestations, the other prestations may still be valid;
hence, the obligation remains. In your evaluation of the foregoing statements: a. Both statements refer
to an alternation obligation. b. Neither statement refers to an alternative obligation. c. Only Statement I
refers to an alternative obligation. d. Only Statement II refers to an alternative obligation. d

D obtained a loan of P50,000.00 from C. The same is payable after 60 days. On due date, D, not having
sufficient cash, offered to give him ring or his bracelet to C. C accepted the offer. Based on the foregoing
facts, which of the following statements is incorrect? a. The original obligation of D is an obligation with
a period. b. The original obligation of D is extinguished by novation. c. The right to choose the item to be
given belongs to C. d. The new obligation is an alternative obligation. c

D borrowed P50,000.00 from C. The debt, which is payable within one year, is secured by a mortgage
that D constituted on his lot. The mortgage is recorded in the Registry of Property. C dies before the due
date of the debt and was not able to collect any amount of his loan receivable from D. He was survive by
S, his only son and heir. D, taking advantage of the situation, sold the lot to T who was not aware of the
mortgage constituted thereon. a. The mortgage is not binding on T since he was not aware of it at the
time he bought the lot. b. S, the son of C, has the right to collect the amount of the note from D and
foreclose the mortgage if the D cannot pay. c. The mortgage is not binding on T since D was in bad faith
when he sold the lot to T. d. The right to collect the loan and foreclose the mortgage were extinguished
upon the death of C. b

A, an agent of P, owes B P20,000.00. B, on the other hand, owes P, P20,000.00. Both debts are due. a. P
may claim legal compensation. b. A may claim legal compensation. c. B may claim legal compensation. d.
Neither P, A nor B may claim legal compensation. d

On January 1, 2014, D and C agreed that D would deliver to C a specific agricultural land on July 1, 2014.
From January 1, 2014 to June 31, 2014, D harvested palay from the land worth P20,000.00. D actually
delivered the land to C on September 30,2014. At the time, crops valued at P 15,000.00 that grew
beginning on July 1, 2014 remained unharvested. C had a personal right against D for the delivery of the
thing and its fruits beginning on: a. January 1, 2014 b. June 30, 2014 c. July 1, 2014 d. September 30,
2014 c
From January 1, 2014 to June 31, 2014, D harvested palay from the land worth P20,000.00. D actually
delivered the land to C on September 30,2014. At the time, crops valued at P 15,000.00 that grew
beginning on July 1, 2014 remained unharvested. C acquired a real right over the thing and its fruits on:
a. January 1, 2014 b. June 30, 2014 c. July 1, 2014 d. September 30, 2014 d

From January 1, 2014 to June 31, 2014, D harvested palay from the land worth P20,000.00. D actually
delivered the land to C on September 30,2014. At the time, crops valued at P 15,000.00 that grew
beginning on July 1, 2014 remained unharvested. The palay harvested from the agricultural land
mention is an example of: a. Industrial fruit b. Natural fruit c. Civil fruit d. It is not a fruit a

D is obliged to deliver his only horse to C on May 31,2014. C made a demand against D for the delivery
of the horse on May 31, 2014. However, D failed to deliver the horse. In view thereof, C consulted you
and ask which of the following remedies were available to him. I. Compel D to deliver the horse to him.
II. Get a horse from another person at D’s expense III. Demand payment of damages to D. Which of the
following foregoing remedies may be availed of by C? a. I and III b. II and III c. I only d. II only a

D is obliged to repair the car of C. D failed to repair the car despite the demand made by C. C wants to
know from you which of the following remedies are available to him: I. Compel D to repair the car. II.
Have the car repaired by another person at D’s expense. III. Demand payment of damages from D.
Which of the following foregoing remedies may be availed by C? a. I and III b. II and III c. I only b. II only.
b

The kind of fraud render a contract voidable is: a. causal fraud b. incidental fraud c. fraud in
performance d. future fraud a

D was obliged to deliver a specific car to C on May 31, 2015. On such date, however, D failed to deliver
the car. C also did not make any demand for the delivery of the car. a. D was in delay when he failed to
deliver the car on due date. b. D was not in delay when he failed to deliver the car on due date. c. D
would be on delay only if C made a demand for the delivery of the car on or before due date. d. D was in
delay whether demand was made or not since time was not of the essence of the contract. b

D appointed C as his agent to purchase a parcel of land belonging to X. D promised to give a commission
of P10,000.00 to C if C can present to D the deed of absolute sale signed by X in favour of D on or before
December 31, 2014. The condition of the obligation is: a. negative b. positive c. impossible d. no
condition exists b

D appointed C as his agent to purchase a parcel of land belonging to X. D promised to give a commission
of P10,000.00 to C if C can present to D the deed of absolute sale signed by X in favour of D on or before
December 31, 2014. Which of the following statement is incorrect? a. D’s obligation is extinguished if it
is already January 1, 2015 and C has not yet represented to D the deed of absolute sale duly signed by X.
b. D’s obligation is extinguished on December 5, 2014 if X dies on such date without his having signed
the deed of absolute sale. c. D’s obligation is demandable if C represents to D on or before December
31, 2014 the deed of absolute sale duly signed by X. d. D’s obligation is demandable if it is already
January 31, 2015 and C has not yet presented to D the deed of absolute sale duly signed by X. d
D promised to give P20,000.00 to C provided C does not sign a contract with X on or before December
31,2014. The condition of the obligation is: a. negative b. positive c. impossible d. no condition exists
a

D promised to give P20,000.00 to C provided C does not sign a contract with X on or before December
31,2014. Which of the following statements is incorrect? a. D’s obligation becomes demandable if it is
already January 1, 2015 and C has not yet signed the contract with X. b. D’s obligation becomes
demandable on December 5, 2014 if X dies on such date without C having signed the contract with X. c.
D’s obligation is extinguished if C signs the contract with X on or before December 31, 2014 d. D’s
obligation is extinguished if it is already January 1, 2015 and C has not yet signed the contract with X.
d

D is obliged to give P50,000.00 to C if C tops the CPA Examination and a specific lot if C can reduce the
taxes to be paid by D in D’s tax return by unlawful means. a. Both conditions must be fulfilled so that C
may demand the payment of P50,000.00 and the delivery of a specific lot. b. C may demand the
payment of P50,000.00 if he tops the CPA Examination c. C may demand the delivery of the specific lot if
he can reduce through unlawful means that taxes to be paid by D. d. C may not demand the payment of
P50,000.00 and the delivery of the specific lot even if he fulfils both conditions since both conditions are
indivisible. b

Three of the following are the characteristics of a condition. Which is an exemption? a. It may or may
not happen. b. It may refer to the future. c. It merely fixes the time for the efficaciousness of an
obligation. d. It may refer to a past event unknown to the parties. c

A, B, and C are solidary debtors of X in the amount of P30,000.00. C was insane at the time the
obligation was constituted. a. X may possibly collect from A the amount of P30,000.00. b. X may possibly
collect from A the amount of P20,000.00 c. X may possibly collect from A the amount of P10,000.00 d. X
may not be able to collect anything from A since the insanity of C at the time the obligation was
constituted rendered the whole obligation voidable. b

The delivery of promissory notes payable to order or other bills of exchange other mercantile
documents shall produce the effect of payment when they are: a. delivered b. cashed c. have been
impaired through the fault of the debtor d. deposited in the bank b

D owes C P10,000.00. T offers to pay D’s obligation and tells D that D need not to reimbursed him.
However, D does not give his consent to T’s offer not to reimburse. C, nonetheless, accepts payment
from T. a. The payment is valid insofar because as C is concerned since he accepted the payment. b. The
payment is not valid because D did not give his consent to T’s offer not to be reimbursed for the
payment c. The payment is not valid because it was not D himself who made the payment d. The
payment will be valid if T had the intention to be reimbursed and D consented to the payment. a

Which of the following payments is not valid? a. Payment to the person in whose favour the obligation
was constituted. b. Payment to the creditor’s successor in interest. c. Payment to the creditor’s heirs. d.
Payment made by the debtor to the person in possession of an order instrument evidencing the credit
but such person is not the indorsee thereof. d

D obtained a loan of P10,000.00 from C who was in his right mind at the time he granted the loan to D.
On due date, D paid his loan obligation of P10,000.00 to C who had since become insane. Of the total
amount received, C lost P4,000.00 and spent P6,000.00 for his food and other necessary expenses. a.
The obligation is totally extinguished because C received the payment in full. b. The obligation is
extinguished up to P4,000.00 c. The obligation is extinguished up to P6,000.00 d. No part of the
obligation is extinguished because C was insane at the time he received the payment. c

Which of the following payments is not valid? a. Payment to a third person who acquires the creditor’s
right after the payment. b. Payment which, although made to a third person, was ratified by the
creditor. c. Payment to a third person who does not have the authority to receive the payment by the
creditor, by his conduct, has led the debtor to believe that the third person had authority to received
payment. d. Payment made in good faith to a person in possession of the instrument but not the credit.
d

The following statements concerning payment by cession are true, except: a. the creditors become the
owners of the properties of the debtor that were ceded to them. b. payment by cession extinguishes the
obligations only to the extent covered by the proceeds of the sale of the debtor’s properties. c. the
debtor must be insolvent. d. it affects all the properties of the debtor except these exempt from
execution.