QUESTIONS ANSWERS

In an alternative obligation, loss of one of the things due

None

Which is NOT a source of obligations

 Reformation?

If a contract does not reflect true intention of the parties

On August 1, 2017, Jojo entered into a contract with George. On Sept. 1, 2017, B
Jojo discovered that there was fraud and this fraud vitiated his consent at the
time he entered into the contract. The action for annulment of the contract may
be brought:
a. Within 4 years from Aug. 1, 2020
b. Within 4 years from Sept. 1, 2020
c. Anytime, since there is no prescriptive period when consent is vitiated
by fraud.
d. Within 4 years from the time of the fraud.

-When either
party becomes
insane ​before
acceptance is
conveyed-

Since the answer

is all, ??

An offer becomes ineffective

 Remission

This is the gratuitous abandonment by the creditor of his right against the
debtor

Unenforceable?

Garett was appointed as the agent of Rolly

 Any person
authorized

Payment shall be made to

Annulment?

Sonny sold a parcel of land to Oscar

A?

In a contract, Jan promises to pay Salud P500,000

 A?

On May 1,2020, S offered to sell a specific car to B for P500,000.00

The following conditions shall annul the obligation which depends upon them
except

All

Which of the following instruments is not subject to reformation

Rescissible

A kind of defective contract which has been validly agreed upon

 ???

Trump and Biden entered into a written contract

A, B and C obliged themselves to deliver to D a car.

33,333.33

The promissory note reads:

In a joint indivisible obligation, if any one

 D

Tito, Vic and Joey were solidarily indebted to Val

None

Joaquin is obliged to give Bianca a car

C?

The remedy of Rescission canno

This is the change, substitution or renewal of an obligation or obligatory relation

 False

If the obligation depends upon the sole will

Brian promised to deliver to Berto one dozen sacks

None

When only one prestation has been agreed upon,

Which of the following are NOT void or inexistent

 C

When the thing is lost in the possession of the debtor:

Bret sold to Shawn 50-kilograms of Shabu

All

Which of the following contracts is not required

Dante borrowed P500,000

 C(?)

S owns a poultry farm that produces eggs

The element of an obligation which binds the parties to the obligation

Resolutory

A promissory note signed by Ellen is

It means to offer to pay on the part of the debtor and it must be shown
 D

If the cause of the contract is illegal

The following are instances of cause fraud, except

Tito, Vic and Joey were solidarily indebted; Joey became insolvent

A juridical relation called solutio indebiti

 Valid

On June 1, 2019, Rody Dudut, a movie producer

Efren obliged to deliver 24 cases to softdrinks to Darna

All

Notwithstanding the loss of the thing due

Jun and Glory promised to deliver a Rolex watch valued at P500,000

 Bad faith B

The remedy of Rescission cannot be availed of:

Which of the following may vitiate consent and hence make a contract voidable

Brandon (active)

Allan, a twenty-one year old, borrowed Php10,000.00 from Brandon; Active

subject

The debtor who cedes or assigns his property to his creditor in payment of his
debt shall be released from his obligation

An offer becomes ineffective:

Valid

Lebron, Kobe’s guardian, executed a deed of sale selling

Void

Brendo bought a baby boy from Sheena.

True
There is Merger if there is the meeting

True

In a solidary obligation, the creditor may proceed

Compensation

This form of extinguishment of an obligation takes place when two persons

False?

Rescissible contracts cannot be assailed by third persons

False

When the duration of the period depends upon the will of the debtor, the
obligation shall be deemed as void.
 True

Advertisements for bidders are simply invitations to make proposal

True

A voidable contract may only be annulled if it

True

A pure obligation is immediately demandable.

True

Payments made by a third person who does not intend to be reimbursed is

deemed to be a donation which requires the debtor’s consent.
 True

Incidental fraud does not make a contract voidable.

False

Unenforceable contracts, like voidable contracts, can also be assailed by third

persons.

These are the things joined to or included with the thing

B
Mistake may invalidate consent when

False

Misrepresentation, even when made in good faith

True

Contracts infringing the Statute of Frauds may be ratified

False

As a general rule, all things which are not outside the commerce of men

1.
A If the thing subject obligation is lost without the fault of the
obligor pending the fulfilment of a suspensive condition, who
suffers the loss?
a.) Obligee
b.) Obligor
c.) Both A and B
d.) No one
e.) None of the above
2.
A It is a form of extinguishment of an obligation through the
lapse of time under the conditions laid by the law

a). Prescription
b). Payment
c). Confusion
d). Novation
e). None of the Above
3. A In ___, the cause for each contracting party is the prestation
or promises of a thing, right, or service by the other.

a). Onerous Contracts

b). Gratuitous Contracts
c). Unilateral Contracts
d). Defective Contracts
4. A Jun and Glory promised to deliver a Rolex watch valued at
P500,000 to Henry on or before December 25, 2006. On
December 25, 2006. Henry demanded delivery from Jun and
Glory. Glory was willing to deliver but Jun refused to deliver
the watch
a.) Jun shall be liable for P250,000 with damages and Glory
shall be liable for P250,000 without damages
b.) Both Jun and Glory shll be liable for P250,000 each with
a 50-50 share in the damages
c.) Either Jun or Glory shall be liable for the whole amount of
P500,000
d.) None of the above
5.
A The following conditions shall annul the obligation which
depends upon them, except:
a.) A condition that some event will happen at a determinate
time but time expires or if it had become indubitable that the
event will not take place
b.) Impossible condition
c.) Conditions against good customs and public policy
d.) None of the above
6.
A If the origin of the defect is the economic damage of lesion to
one of the parties or to a third person, the contract is:
a.) Recissible
b.) Voidable
c.) Unenforceable
d.). Void
e.) None of the above

. A The diligence of a good father, or ordinary degree of care,

shall be observed in what type of Obligation?
a.) Obligation to give a determinate or determinable
prestation
b.) Obligation to give a determinate or generic prestation
c.) Obligation not to give
d.) Obligation to do or not to do
8. A A type of defective contract where all the essential
requisitees are present but by reason of injury or damage to
one of the parties or a third person, the contract may be
rescinded.

a). Rescissible Contracts

b). Annullable Contracts
c). Voidable Contracts
d). Rescissible obligations by virtue of non-performance
under Article 1191
e). None of the Above
9.
A If mistake, fraud, or accident has prevented the meeting of
minds of the parties, the proper remedy is:
a.) Annulment
b.) Reformation
c.) Recission
d.) Specific performance
e.) None of the above
10. A It means the offer to pay on the part of the debtor and it
must be shown that the debtor has, at the time of making
the offer, the thing or amount to be paid
a.) Tender of Payment
b.) Consignation
c.) Payment by Cession
d.) Application of Payments
11.
A There is solidary liability if:
a.) The course declares so in the adbsence of an
agreement
b.) If there is fraud committed
c.) The obligation impliedly so states
d.) None of the above
12. A A joint indivisible obligation gives rise to indemnity for
damages
a.) From the time anyone of the debtors does not comply
with his undertaking
b.) If the parties incur delay
c.) If the same is stipulated
d.) None of the above

1 A When the obligee accepts the performance of an

3
. obligation, knowing its incompleteness or irregularity,
and without expressing and protest or objection, the
obligation is:

a). Deemed fully complied with

b). Void
c). Recissible
d). Unenforceable
e). None of the above
1 A Which of the following is a solemn contract?
4
. a.) Donation
b.) Sale
c.) Pledge
d.) None of the above
1
A A condition which suspends the demandability or
5
. enforceability of an obligation is called
a.) Suspensive Condition
b.) Resolutory Condition
c.) Potestative Condition
d.) None of the above
e.) All of the above
1
A It is the designstiin of the debt to which should be
6
. applied the payment made by a debtor who has various
debts of the same kind in favor of one and the same
creditor.

a). Application of Payments

b). Consignation
c). Tender of Payment
d). Decion in Payment
e). None of the Above
1
A In ______, the cause for each contracting party is the
7
. prestation or promise of a thing, right, or service by other
a.) Onerous contracts
b.) Gratuitous contracts
c.) Unilateral contracts
d.) Defective contracts
1 A This is an example of an obligation not to do
8
. a.) An option contract with consideration
b.) Contract of donation
c.) An option contract without consideration
d.) Contract to sell
1 A S sells his gun to B for P100,000. B bought the gun to kill
9
. Z
a.) The contract is valid
b.) The contract is void
c.) The contract is void for being contrary to law
d.) None of the above
2
A A promises to give B P100,000 if the latter kills C
0
. a.) Obligation is void
b.) Obligation is valid
c.) Only the condition is void

21. A S sells his house for P3M. The value of the house is P6M.
Contract is:
a.) Valid
b.) Rescissble
c.) Unenforceable
d.) Voidable
e.) None of the above
22.
A This is obligatory, no matter what form may be, so long as
the essential requisites for its validity are present
a.) Contract
b.) Law
c.) Obligation
d.) Juridical tie
23. A The remedy is reformation of instruments, not annulment of
the contract, if the failure of the instrument to express the
true intention of the parties is due to:
a.) Mistake
b.) Dementia
c.) Violence
d.) Insanity
e.) Hypnotic Spell
24. A X forgives the P15,000 indebtedness of Jose. The latter's
obligation is extinguished by
a.) Condonation
b.) Confusion
c.) Compensation
d.) Novation
e.) Consignation
25. A D promised to give C P1000 should the sun rise up from the
west
a.) Obligation is void
b.) Obligation is valid
c.) Only the Condition is void
26. A It is a future and certain event upon the arrival of which the
obligation subject to it either arises or is terminated.

a). Period
b). Condition
c). Payment
d). Merger
e). None of the Above
27.
A A special kind of obligation which cannot be enforced in
court but which authorizes the retention of the voluntary
paymeny or performance made by the debtor
a.) Natural obligation
b.) Legal obligation
c.) Moral obligation
d.) Civil obligation

8 B Merger which takes place in the person of principal

.
debtor or creditor
a.) Benefits the guarantor even if stipulated to the
contrary
b.) Benefits the guarantor as a matter of course
c.) Does not benefit the guarantor
d.) None of the above
2 B I will pay you if you join the singing contest at the plaza
9
. tonight
a.) Obligation is void
b.) Obligation is valid
c.) Only the Condition is void
3 B I will pay you my debt if I win the lottery
0
. a.) Obligation is void
b.) Obligation is valid
c.) Only the Condition is void
3 B G, guardian, sells D's cat at P2M for P1.5M to B. D is an
1
. absentee. Contract is:
a.) Valid
b.) Rescissible
c.) Unenforceable
d.) Voidable
e.) None of the above
3 B The meeting is one person of the qualities of a creditor
2
. and debtor with respect to the same obligation is called:
a.) Compensation
b.) Merger
c.) Remission
d.) Novation
3
B A judicial relation called solutio indebiti takes place:
3
. a.) When a person voluntarily takes charge of another's
abandoned business or property without the owner's
consent
b.) When something is received and there is no right to
demand it and it was delivered through mistake
c.) When a person is appointed by court to take charge
of the property or business of another
d.) None of the above
3 B This consists in the abandonment of all property of the
4
. debtor for the benefit of his creditors in order that the
latter may apply the proceeds thereof to the satisfaction
of their credit
a.) Compensation
b.) Cession
c.) Confusion or Merger of Rights
d.) Novation
3
B S sells his house to B when B was under a hypnotic
5
. spell. Contract is:
a.) Valid
b.) Voidable
c.) Void
d.) Unenforceable
e.) Rescissible

36. B M, minor sells his car to I, insane person during I's lucid
interval. Contract is:
a.) Valid
b.) Voidable
c.) Void
d.) Unenforceable
e.) Rescissible
37. B If one of the contracting parties is incapacitated to enter into
the contract, the contract is:
a.) Rescissible
b.) Voidable
c.) Unenforceable
d.) Void
e.) None of the above
38.
B D borrowed P50,000 from C payable on March 15, 2017.
Later D told C that he will pay him his indebtedness if C
finds a buyer of his car
a.) Obligation is void
b.) Obligation is valid
c.) Only the condition is void
39. B Lessor agrees to lease his condominium unit to Lessee for
2 years. For the agreement to be valid
a.) Parties must execute a written contract
b.) Parties must execute a written contract and have it
notarized
c.) No written contract is necessary
d.) None of the above
40. B When there is no reservation on interest, it is presumed that
interest has been paid when the obligee issued a receipt on
the principal
a.) False
b.) True, but only a presumption
c.) True
d.) Only a disputable presumption
41.
B I will pay you my debt if I win the lottery is:

a). A void obligation

b). A valid obligation
c). Only the condition is void
d). None of the Above
42. B It is an obligation which contains an accessory undertaking
to previously agreed indemnity in case of its breach

a). Obligation with a period

b). Obligation with a penal clause
c). Accessory Obligation
d). Aleatory Contracts
e). None of the Above
43. B The tires of an automobile is an accessory and not an
accession
a.) True
b.) False
What kind of fruit is
spring water that
blooms within a
certain landscape
that was acquired
by X through a
donation from Y?

a.) Dragon fruit

b.) Natural fruit

c.) Civil fruit

d.) Industrial fruit

45. B This has the force of law between

parties and shall be complied with in
good faith

a.) Obligations

b.) Obligations arising from

contracts

c.) Contracts

d.) Court decisions arising from civil

cases
46.
B Joaquin is obliged to give Bianca a
car or to construct a building on the
lot belonging to Bianca. Without the
knowledge of Joaquin, Bianca sells
her lot to Jalen. In such a case:

a). Joaquin may demand the return

of the lot from Jalen so he can
perform his obligation and contruct
the building

b). Joaquin may rescind the

obligation and in addition recover
damage from Bianca

c). Bianca may rescind the

obligation and in addition recover
damage from Joaquin.

d). None of the Above

e). All of the Above

47. B Tito sells his land to Vic. In the deed

of sale, the stated price of the land
is ₱500,000; however in truth, Tito
and Vic agreed that the selling price
is merely ₱50,000. Which is correct?

a). The contract is void

b). The contract is valid

c). The contract is unenforceable

d). The contract is annullable

 e). None of the Above

48. B If the property title was obtained by

one sibling by virtue of
misrepresentation, what legal
concept can be used to successfully
argue that the said sibling is civilly
liable to his other siblings over their
equal shares in the property

a.) Solutio indebiti

b.) Implied trust

c.) Negotiorium gestio

49. B An acquittal or finding of innocence

in a criminal case necessarily
means that the accused is also
innocent from civil liability

a.) True

b.) False
50.
B A seller is obliged to deliver a certain farm land to buyer
(fully paid for) on Feb 2018, but such delivery was only
made on Feb 2019. From June to Aug 2018, crops were
valued at 500k were harvested from the said farm land. Can
buyer successfully file a court case against the seller to
compel him to turn over the 500k (less reasonable
expenses) from the harvested crops?

a.) No, because buyer only has right over the crops
harvested from the land but not the monetary value of the
crops

b.) Yes, because the crops were the fruits of the farm land
and such fruits were produced when obligation to deliver
the land is already due

c.) No, because even if teh crops were the fruits of the land,
it was produced when delivery has not yet been made

d.) None of the choices are correct

51. B Brian promised to deliver to Berto 1 dozen sacks of coffee

beans. Due to typhoon Jemong, half of the 1 dozen coffee
beans perished while still in the possession, though without
the fault of Berto.

a). The obligation of Brian is extinguished because the loss

was due to a fortuitious event

b). The obligation of Brian is not extinguished and he is still

obliged to deliver 1 dozen coffee beans to Berto

c). The obligation of Brian is not extinguished but he is

merely obliged to deliver to Berto the other half dozen
coffee beans which did not perish in the typhoon

d). The obligation is extinguished but Berto is entitled to

claim damages
 e). None of the Above

52. A Demand by the creditors shall not be necessary in order

/ that delay may exist in the following instance.
B

a). When from the nature and circumstances of the

obligation it appears that the designation of the time was a
controlling motive for the establishment of the contract

b). When the thing was lost due to the fault of the creditor

c). When creditor is guilty of fraud or negligence in the

performance of his obligation

d). None of the above

e). All of the above

53. B What is the consequence if obligor obligates the same

prestation to two different obligees, or if obligor fails to
deliver the certain prestation on time to the obligee?

a.) Obligor shall pay a penalty and/or fine

b.) Obligor remains liable for the obligation to deliver the

certain prestation even if a fortuitous event destroys the
prestation

c.) Obligot shall be exempt from the obligation to deliver a

certain prestation if the prestation is lost or destroyed due to
a fortuitous event such as an earthquake
5
B All are requisites of a valid contract except:
4
.

a). Cause of the obligation which is established

b). Payment of the prestation

c). Object certain which is the subject matter of the

contract

d). Consent of the contracting parties

e). None of the above

5 B Which of the following contracts is required to be in

5
. writing to be enforceable?

a.) An agreement that by its terms is to be performed

within one year from the making thereof

b.) A special promise to answer for the debt, default or

miscarriage of another

c.) An agreement for mutual promise to marry

d.) All of the above

5 B Joaquin is obliged to give Bianca a car or to contruct a

6
. building on the lot belonging to Bianca. Without the
knowledge of Joaquin, Bianca sells her lot to Jalen. In
such a case:

a.) Joaquin may demand the return of the lot from Jalen
so he can perform his obligation and construct the
building

b.) Joaquin may rescind the obligation and in addition

recover damages from Bianca
 c.) Bianca may rescind the obligation and in addition
recover damages from Joaquin

d.) None of the above

5 B "Tito, Vic, and Joey were solidarily indebted to Ritchie D'

7
.
Horsie in the amount of ₱600,000 payable on September
7, 2009. On said that, Tito and Vic separately offered to
pay Ritchie D'Horsie, but he only accepted Tito's offer,
and Tito paud the entire amount." Supposed Joey cannot
reimburse Tito because he was declared insolvent.
Which of the following is correct?

a.) Vic shall be liable to Tito for P300,000

b.) Vic shall be liable to Tito for P200,000

c.) Vic shall be liable to Tito for P100,000

d.) Vic shall not be liable to Tito

e.) None of the above

5 B "Tito, Vic, and Joey were solidarily indebted to Ritchie D'

8
. Horsie in the amount of ₱600,000 payable on September
7, 2009. On said that, Tito and Vic separately offered to
pay Ritchie D'Horsie, but he only accepted Tito's offer,
and Tito paud the entire amount." Supposed Tito made
payment before September 7, 2009, which of the
following is correct?

a.) Interest for the intervening period may be demanded

by Ritchie D'Horsie

b.) No interest for the intervening period may be

demanded by Ritchi D'Horsie

c.) Interest may be paid only by Tito when Joey or Vic is

insolvent
 d.) The payment made by Tito is void and thus does not
extinguish the obligation

e.) None of the above

59. B Legal compensation is not proper in the following:

a). Simple Obligation

b). Alternative Obligation

c). Conventional Obligation

d). Facultative Obligation

e). None of the Above

60. B If one of the contracting parties is incapacitated to enter into

the contract, the contract is:

a). Rescissible

b). Voidable

c). Unenforceable

d). Void

e). None of the Above

61.
C Refers to the duty of a person to satisfy demandable claim
of another person which, if breached, in enforceable in
court

a.) Quasi contract

b.) Quasi delicts

c.) Obligation

d.) Contract

e.) Law

62. C ______ arises from lawful, voluntary, and unilateral acts

and which are enforceable to the end that no one shall be
unjustly enriches or benefitted at the expense of another

a.) Delict

b.) Contract

c.) Quasi contract

d.) Quasi delict

e.) Law

63. C In cases wher both plaintiff and defendant committed

negligence that lead or contributed to damages on the part
of the plaintiff, what shall be considered by the court in
ruling on the civil liability?

a.) The proximate cause of the damage and the level of

diligence that ought to be expected from either parties

b.) The negligence of both plaintiff and defendant negates

the claim for damages
 c.) The root cause of the damages suffered by the plaintiff
and upon whose negligence such root cause is attributable
to

C If an obligation to
deliver a car and
obligor fails to deliver
it on time, can
obligee buy (using his
own money) a 10M
car and then
successfully sue to
compel obligor to
reimburse him the
10M?

a.) No, the court

cannot prosper
because the
obligation is void for
having a generic
prestation

b.) No, even if the

prestation is generic,
the parties could
have though of a
pricey sports car
when they agreed on
the obligation to
deliver a car

c.) Yes, if the

prestation is generic
the obligee may sue
so that the obligation
may be fulfilled at the
expense of obligor
 d.) Non of the
choices are correct

6 A, B, and C owe X, Y, and Z

C
5
.
the sum of P100,000. The
aprties did not agree as to what
kind of obligation they
contracted. What kind of
obligation did they contract?

a.) Soldary

b.) Divisible

c.) Joint

d.) None of the above

6
C Which of the following is
6
. capacitated to give consent?

a.) Drunk person

b.) Person under hypnotic spell

c.) Insane person during lucid

inerval

d.) None of the above

6
C On August 1, 2006, Jojo
7
. entered into a contract with
George. On Spetember 1,
2006, Jojo discovered that
there was fraud and that this
fraud vitiated his consent at the
time he entered into the
contract. The action for
annulment of the contract may
be brought:

a.) Within four (4) years from

the time of the fraud

b.) Within four (4) years from

August 1, 2006

c.) Within four (4) years from

September 1, 2006

d.) Anytime, since there is no

prescriptive period when
consent is vitiated by fraud

6 C The application of the debt as

8
. to debts not yet due

a.) Cannot be made even if

stipulated

b.) Can be made as a matter of

course

c.) Entitles debtor to demand

return that which ahs been paid

d.) None of the above

6
C This form of extinguishment of
9
. an obligtion takes place when
two persons, in their own right,
are creditos and debtors of
each other

a.) Confusion

b.) Remission

c.) Compensation

d.) Novation

70.
C In an obligation with a penal clause

a.) The creditor at the same time may recover damages

b.) The creditor may demand payment of dmaages

c.) The creditor should go to court to demand penalty

d.) None of the above

71. C In an obligation to deliver a determinate thing, the

accessories are included:

a.) If clearly stipulated

b.) If impliedly asked by the creditor

c.) Even if not mentioned

d.) If coupled with a consideration

72.
C When a partially insolvent debtor abandons and assigns all
his properies in favor of his credito for the latter to sell to
satisfy the debtor's obligation, this is:

a.) Novation

b.) Dation in payment

c.) Payment in cession

d.) Expromissions

e.) None of the above

73. C The panel clause requires

a.) Proof of actual damages

b.) Prestation of the written contract

c.) Non-payment of principal obligation so it could be

enforced

d.) None of the above

74. C Irene promises to give Joaquin P25,000 if she donates her

L-300 Van to the Ospital ng Makati. Which of the
statements are true:

a.) The conditional obligation is valid because it is a casual

condition

b.) The conditional obligation is void because it is a mixed

condition

c.) The conditional obligation is void because it is a

potestative condition

d.) The conditional obligation is valid because it is not

against law, public policy and good custom
75.
C A condition suspensive in nature and which depends on the
sole will of one of the contracting parties

a). Resolutory Condition

b). Potestative Condition

c). Suspensive Condition

d). Impossible Condition

e). None of the Above

76. C If both of the parties are incapacitated to enter into the

contract, the contract is:

a). Rescissible

b). Voidable

c). Unenforceable

d). Void

e). None of the Above

7
C The obligee is entitled to damages when the
7
. performance of an obligations attended by fraud,
negligence, delay, and contravention of the tenor of the
obligation. However, the obligor is not liable for loss
arising from fortuitous events even if he was in delay

a.) Both statements are correct

b.) Both statements are incorrect

 c.) Only the first statement is correct

d.) Only the second statement is correct

e.) None of the above

7 C It is the manner through which one either acquires or

8
.
extinguishes ownership and other rights through the
lapse of time in the manner and conditions provided by
law

a.) Condonation

b.) Dation

c.) Prescription

d.) Delegacion

e.) Expromission

7 C It is a remedy by means of which a written instrument is

9
. amended or ratified so as to express or conform to the
real agreement or intention of the parties, when by
reason of mistake, fraud, inequitable conduct, or
accidentally the instrument fails to express such
agreement or intention.

a). Annulment of the contracts

b). Nullity

c). Reformation

d). Rescission

e). None of the Above

8
C If there is lack of the formality of required writing such as
0
. those covered by the statute of frauds, the contract is:

a). Rescissible

b). Voidable

c). Unenforceable

d). Void

e). None of the Above

8 C The contract is valid but cannot be sued upon unless it is

1
. ratified:

a.) Recissible

b.) Voidable

c.) Unenforceable

d.) Void

e.) None of the above

8 C In fraud there is a deliberate intention while there is no

2
. such intention in negligence. Waiver of liability for future
fraud is void as a contrary rule would encourage fraud

a.) Only the first statement is correct

b.) Only the second statement is correct

c.) Both statements are correct

d.) None of the statements are correct

83.
C Tito, Vic, and Joey were solidarily indebted to Ritchie D'
Horsie in the amount of ₱600,000 payable on September 7,
2009. On said that, Tito and Vic separately offered to pay
Ritchie D'Horsie, but he only accepted Tito's offer, and Tito
paud the entire amount. Which of the following is not
correct?

a). The obligation to pay Ritchie D'Horsie is extinguished

b). Tito now becomes the new creditor of Vic and Joey.

c). Vic and Joey are now solidarily liable to Tito for
₱400,000

d). Vic and Joey are jointly liable to Tito for only ₱200,000
each

e). None of the above

84. C Manny sold a parcel of land to Oscar. Through fraud,

Manny instead prepared a contract of mortgage. Both
parties then signed the contract, Oscar being unaware that
it was merely a mortgage and not a sale. After a week,
Oscar discovered that the contract was really a mortgage.
Oscar then proceeded to foreclose the property and enforce
the mortgage. Under the circumstances, which is correct:

a). The contract shall be reformed because there was fraud

b). The parties can ask for annulment of the contract

c). Oscar could no longer bring an action for reformation to

make it a contract of sale

d). The parties can ask for nullity of the contract because it
is void
 e). None of the Above

85. C If both of the parties are incapacitated to enter into the

contract, the contract is:

a.) Recissible

b.) Voidable

c.) Unenforceable

d.) Void

e.) None of the above

86. C Bongbong promises to give Biboy ₱50,000 if Bongbong will

donate his car to Gawad Kalinga. Which of the statements
are true?

a). The conditional obligation is valid because it is a casual

condition

b). The conditional obligation is valid because it is a mixed

condition

c). The conditional obligation is valid because it is not

against law and public custom

d). None of the Above

8
C This form of extinguishment of an obligation takes place
7
. when two persons, in their own right, are creditors and
debtors of each other

a). Merger
 b). Novation

c). Compensation

d). Assignment

e). None of the Above

8 C When the nullity proceeds from the illegality of the cause

8
. or object of the contract and the act constitutes a
criminal offense, both parties being in pari delicto

a.) The parties shall have no action against each other

b.) Both shall be prosecuted

c.) A and B

d.) B only

8 C Tito, Vic, and Joey owe Buboy, Danny, and Jim the sum
9
. of ₱300,000. The parties did not agree as to what kind of
obligation they contracted. What kind of obligation did
they contract?

a). Solidary

b). Divisible

c). Joint

d). Indivisible

e). None of the Above

9
C If a contract is entered by one in behalf of another
0
. without or in excess of authority. the contract is:

a.) Rescissible

b.) Voidable

c.) Unenforceable

d.) Void

e.) None of the above

9
C On December 11, 2007, Robert entered into a contract
1
. with Simon. On December 11, 2008, Robert discovered
that there was fraud and this fraud vitoated his consent
at the time he entered into the contract. The action for
annulment of the court may be brought:

a). Within 4 years from the time of the fraud

b). Within 4 tears from December 11, 2007

c). Within 4 years from Decebmer 11, 2008

d). Anytime, since there is no prescriptive period when

consent is vitiated by fraud

e). None of the above

92.
C If Ani, Bambi, Carla, and Daphne are indebted to
(25,000) Egay, Fidel, and Gary for the amount of P300,000
how much can Egay collect from Carla?

a.) P20,000

b.) P50,000
 c.) P25,000

d.) P75,000

e.) P15,000

93. D If there is absence of one, some, or all of the

essential elements of a contract, the contract is:

a). Rescissible

b). Voidable

c). Unenforceable

d). Void

e). None of the Above

94. D Emile obliged himself to deliver Evelyn either a

Mercedes Benz car or a Ford Expedition. Due
solely to the eruption of Mayon volcano, the
Mercedes Benz perished. Under the circumstances:

a.) Evelyn may rescind the obligation and demand

the value of the Mercedes Benz from Emilie

b.) Evelyn may rescind the obligation and demand

the value of the Mercedes Benz plus damages from
Emilie

c.) Emilie's obligation is totally extinguished

d.) The obligation of Emilie becomes a simple

obligation to deliver the Ford Expedition to Evelyn
95.
D Which is considered the most defective among the
following contracts?

a). Rescissible

b). Voidable

c). Unenforceable

d). Void contract

e). None of the Above

96. D Which is considered the most defective among the

following contracts?

a.) Rescissible contract

b.) Voidable contract

c.) Unenforceable contract

d.) Void contract

e.) None of the above

97. D Which of the following is not part of criminal

liability?

a.) Possible imprisonment

b.) Restitution

c.) Payment of damages

d.) Pardon
9
D It is the extinction of an obligation through the creation
8
. of a new one which substitutes it:

a). Compesnation

b). Rescission

c). Confusion

d). Novation

e). None of the Above

9 D What distinguishes contract, as a source of obligation,

9
. from all the other sources of obligation (i.e. law, quasi
contract, delict, quasi delict)

a.) Extent of penalty

b.) Amount of damages

c.) Contract is written

d.) Pre-existing contractual relation between parties

1 D The seller has an obligation to deliver a certain horse.

0
0 already fully paid for by the buyer, on Feb 15. While the
. horse (loaded on a carriage) was en route to buyer on
Feb 15, it gave birth to a baby horse. Who has the right
to possess the baby in the meantime?

a.) The buyer, because the baby house was born when
the obligation to deliver it has become due

b.) The seller, because he has fully paid for the horse

c.) The buyer, because the obligation is only to deliver

the horse and not a baby horse
 d.) The seller, because the baby horse was born prior to
deliver to buyer

1 D It is a special form of payment where the debtor assigns

0
1 or abandons all his properties for the benefit of his
. creditors in order that they may sell the said properties
and apply the proceeds thereof to the satisfaction of
their credits.

a). Consignation

b). Tender of Payment

c). Dacion

d). Payment by Cession

e). None of the Above

1 D The type of obligation where only 1 prestation is due but

0
2
the debtor may substitute another
.

a). Alternative Obligation

b). Potestative Obligation

c). Conditional Obligation

d). Facultative Obligation

e). None of the Above

1
D This refers to a contract that reserves to a person the
0
3 prerogative to buy property within a certain time period,
. during which period the same property cannot be validly
offered for sale to anyone else

a.) Contract for right of first refusal

b.) Option contract without consideration

c.) Contract to sell

d.) Option contract with consideration

104. D Emilie obliged herself to deliver to Evelyn either a

Mercedes Benz or a Ford Expedition. Due solely to the
eruption of the Mayon volcano, the Mercedes Benz
perished. Under the circumstances:

a). Evelyn may rescind the obligation and demand the

value of the Mercedes Benz

b). Evelyn may rescind the obligation and demand the

value of the Mercedes Benz plus damages from Emelie

c). Emilie's obligation is totally extinguished

d). The obligation of Emilie becomes a simple obligation to

deliver the Ford Expedition

e). None of the Above

105. D When only one prestation has been agreed upon, but the
obligor may render another in substitution, the obligation is
called:

a.) Alternative
 b.) Indivisible

c.) Divisible

d.) None of the above

106. D In an obligation with a period, the debtor shall lose every

right to make use of the period when:

a.) He does not furnish to the creditor the guaranties or

securities he has promised

b.) After the obligation has been contracted, he becomes

insolvent, unless he gives a guaranty or security for the
debt

c.) The debtor attempts to abscond

d.) All of the above

107. D The following are essential elements of a contract except:

a.) Consent

b.) Cause

c.) Object

d.) Motive

e.) None of the above

108. D If there is absence of one, some, or all of the essential

elements of a contract, the contract is:

a.) Rescissible

b.) Voidable

c.) Uneforceable
 d.) Void

e.) None of the above

109. D S offers to sell his house to B for P5M. S threatens to kill

B's spouse through S's bodyguard. S is 5ft ft tall, while B is
6.5ft tall

a.) B's consent is defective because of violence

b.) B's consent is defective because of intimidation

c.) B's consent is defective because of threats of violence

d.) There is a valid contract between the parties

1 D B proposes marraige to G, who accepts the proposal.

1
0 For the agreement to be enforceable:
.

a.) Parties must execute a written contract

b.) Parties must execute a written contract and have it

notarized

c.) B should give G a diamond ring

d.) None of the above

1 D Which of the following is a consensual contract

1
1
. a.) Donation

b.) Sale

c.) Pledge

d.) None of the above

1
D As a rule, before delay may be incurred, there must be a
1
2 demand. The following are the expectations to this rule
. except:

a.) When the law or obligation expressly so declares

b.) When time is essence

c.) When demand is useless as when the obligation has

rendered it beyond his power to perform

d.) When the debtor becomes insolvent

1 D When there is no reservation on interest, it is presumed

1
3 that the interest has been paid when the obligee issued
. a receipt on the principal

a.) True

b.) False

c.) Only a disputable presumption

d.) A and C are correct

1 D This is the change, substitution, or renewal of an

1
4 obligation or obligatory relation, with the intention of
. extinguishing or modifying essentially the former
obligation

a.) Confusion

b.) Cession

c.) Negotiorium Gestio

d.) Novation
1
D An obligation where only one prestation has been
1
5 agreed upon but the debtor may render another in
. substitution is called:

a.) Simple obligation

b.) Alternative obligation

c.) Conventional obligation

d.) Facultative obligation

e.) None of the above

1 D The loss of the thing in the absence of fault and delay

1
6
. a.) Will definitely exempt the debtor from liability

b.) Will not exempt him from liability

c.) Will cause novation

d.) None of the above

117. D Legal compensation is not proper among

the following except:

a.) Commodatum

b.) Gratuitous support

c.) Civil liability arising from a criminal

offense

d.) Bank deposit

e.) None of the above

118.
A (Dacion en The delivery of land transmission of
pago) ownership of a thing by the debtor to a
creditor as an accepted equivalent of the
performance of an obligation:

a.) The parties shall have no action against

each other

b.) Both shall be prosecuted

c.) A and B

119. D The act of depositing payment for an

(Consignation) obligation in court under instanced
permissible by law is called:

a.) Dacion en Pago

b.) Resolutory Condition

c.) Potestative Condition

d.) None of the above

e.) All of the above

120. D. Statute of S and B entered into an oral contract of sale

Fraud of a parcel of land. They agreed on the
price, date of payment and delivery of title
on August 30, 2007. Suppose on August 30,
2007, B goes to the house of S to deliver
the purchase price, but S refuses to convey
the land. Can B sue S to compel
performance?

a.) Yes

b.) No

c.) Maybe
 d.) None of the above

121. E The non payment of a price is:

a.) Breach of contract

b.) A ground for specific performance

c.) A ground for recission

d.) Renders one liable for damages

e.) All of the above

122.
E The following are sources of obligation
except:

a). Law

b). Quasi-Delict

c). Criminal Acts

d). Quasi-Contract

e). None of the Above

1 E The following are the characteristics of cession except:

2
3
. a.) There are several creditors

b.) Agreement of all the parties to a new contract

c.) Extinguishment of the old contract

d.) Validity of the new contract

 e.) Commitment to pay damages in case of failure to
perform the new contract

1 E The following are the factors to be considered in

2
4 determining negligence
.

a.) Nature of the obligation

b.) Circumstance of the person

c.) Circumstance of the time and place

d.) Whether the debtor used reasonable care and

caution which an ordinary person would have observed
under the circumstances

e.) All of the above

1 E X and Y entered into a contract of loan stipulating that Y,

2
5 the debtor, shall pay when his means permits him to do
. so, when X needed money, he thought of determining Y
to pay his debt however, the latter refueled to pay

a.) The Obligation is deemed to be one with a period

b.) The remedy of X is to go to court ask the court to fix

the period

c.) Period depends under the circumstances of the case

d.) All of the above

e.) Statements a and b are correct

1 E The payment of an obligation may be made to the

2
6 following except:
.

a.) Creditor

b.) Person duty authorized by the creditor

 c.) The creditor's successors-in-interest

d.) Persons favored by the obligation

e.) None of the above

1 E The following are requisities of a valid prestation, except

2
7
. a.) Determined or determinable

b.) Possible

c.) Has monetary value

d.) Legal

e.) Solid

1 E The kind of diligence which the obligor must be

2
8 observed is that agreed upon, orally or in writing. In the
. absence of stipulation, that kind of diligence which is
provided by law in the particular case must be observed.
If both contract and law are silent, extraordinary
diligence must be observed

a.) Only the first statement is correct

b.) Only the second statement is correct

c.) Only the third statement is correct

d.) All the statements are correct

e.) Only the first and second statements are correct

f.) Only the second and third statements are correct

129.
E The non-payment of the price is:

a). A breach of contract

b). A ground for specific performance

c). A ground for rescission

d). Renders one liable for damage

e). All of the above

130.
E It is a juridical necessity to give, to do, or not to
do.

a). Contract

b). Legal Capacity

c). Right

d). Wrong

e). None of the Above

131. E (causal The type of fraud which is serious, exists at the

fraud) time of perfection of the contract and makes the
contract voidable

a). Casual Fraud

b). Incidental Fraud

c). Quasi-Delict
 d). Quasi-Contract

e). None of the Above

132. E It is a meeting of minds between two persons

(contract) wherein one binds himself, with respect to the
other, to give something or to render some
service.

a). Obligation

b). Quasi-Contract

c). Quasi-Delict

d). Law

e). None of the Above

133. E A condition wherein the happening of which

(resolutory extinguishes the obligation
condition)

a). Suspensive Condition

b). Implied Condition

c). Indivisible Condution

d). Divisible Condition

e). None of the Above

134.
No answer If the oblifation is not demandable before the
lapse of the period

a.) Is absolute

b.) Depends upon force

c.) Cannot be invoked when the debtor attempts

to abscond

d.) None of the above

Which of the following is not considered a conditional obligation? D? ​A?

a. D is to pay C P5 000 as soon as D has the means

b. D is to pay C P5 000 if C marries Y
c. D is to pay C P5 000 if C tops the CPA Board Examination
d. D is to pay C if X dies of Ebola

A, B, C, and D are obliged to give V, W, X, Y, and Z P20,000. C

a. V may collect from A P1,000
b. V may collect from A P4,000
c. V may collect from A P5,000
d. V may collect from A P20,000

As a general rule, payment shall be made at the residence of the False

debtor.
a. True
b. False

A, B, and C are solidarily liable to X for P30,000. A pays X the D

whole amount due. C, however, is insolvent. Which of the ff. is
true?
a. A can demand a refund of P10,000 from X pertaining to C’s
shares since C is insolvent.
b. A can collect from B P10,000.
c. A alone will bear the share of C who is insolvent since he
(A) made the payment.
d. A can collect from B P15,000.
D is obliged to give C P10,000 if X dies. This is an example of: A
a. An obligation with a resolutory period
b. An obligation with a period
c. A pure obligation
d. An obligation with a suspensive condition

The delivery and transmission of ownership of a thing by the B

debtor to the creditor as an accepted equivalent of performance is
known as:
a. Attachment
b. Dacion en pago
c. Consignation
d. Payment by Cession

It is the voluntary administration of the property of another without A

his consent.
a. Negotiorum gestio
b. Contract
c. Solutio indebiti
d. Quasi-delict

Skiley Mirus, a singer, was contracted by Digs to sing at Colonel A?

Covidap’s Mananita on July 21, 2020. Skiley did not show up at
the birthday party because she did not receive a demand letter to
perform. Digs sued Skiley and demanded that she sing at the
Colonel’s next birthday. Which of the ff. is true?
a. Skiley Mirus cannot be forced to sing, but she must pay
damages.
b. Skiley Mirus is not liable because she was never placed on
delay.
c. None of the choices are correct.
d. Skiley Mirus must perform at the Colonel’s next birthday
because the case filed against her is one for specific
performance.

On August 1, 2017, Jojo entered into a contract with George. On B

Sept. 1, 2017, Jojo discovered that there was fraud and this fraud
vitiated his consent at the time he entered into the contract. The
action for annulment of the contract may be brought:
a. Within 4 years from Aug. 1, 2017
b. Within 4 years from Sept. 1, 2017
c. Anytime, since there is no prescriptive period when
consent is vitiated by fraud.
d. Within 4 years from the time of the fraud.

When a contract is entered into by and between a minor and an B

insane person during a lucid interval, the status of the contract is:
a. Unenforceable
b. Voidable
c. Valid
 d. Void

In exercising the right of resolution against a debtor who has failed False? ​(i think so false
to perform an obligation, the creditor must have exhausted all rin)
other legal remedies first.
a. True
b. False

A written voidable contract where consent of one of the parties False

was procured through violence may be annulled within 10 years
from the time violence ceased.
a. True
b. False

In construing the terms of a written contract, the ff. rule is best B?

when there is no ambiguity in the contents thereof:
a. Interpretation shall depend on the usage or custom of the
place where it was entered.
b. All of the above.
c. Literal meaning of its stipulations shall control.
d. Interpretation which is most adequate to render it effectual
shall be used.

In a joint obligation, there is mutual agency among co-debtors. False

a. True
b. False

The contract of sale differs from dacion en pago because: A

a. There is no pre-existing obligation.
b. The law on Sales under the Civil Code applies.
c. Property is delivered to extinguish an obligation.
d. There is novation of obligation.

Which is considered a generic thing? C

a. Apple Macbook (13-inch, 2020), Serial Number 123456
b. Parcel of land located at No. 123 Espana Blvd., Sampaloc
c. None
d. White Pearl Toyota Land Cruiser Model LC200 Premium

Emilie obliged himself to deliver to Evelyn either a Mercedes Benz B

or a Ford Expedition. Due solely to the eruption of Mayon, the
Benz perished. Under the circumstances:
a. Evelyn may rescind and demand the value of the Benz
from Emilie.
b. The obligation of Emilie becomes a simple obligation to
deliver the Ford to Evelyn.
c. Emilie’s obligation is totally extinguished.
d. Evelyn may rescind and demand the value of the Benz plus
damages from Emilie.

“I will give you 10,000 if you will pass OBLICON” is an obligation B

with a:
a. Suspensive Period
b. Suspensive Condition
c. Resolutory Period
d. Resolutory Condition

This consists in the abandonment of all property of the debtor for D

the benefit of his creditors in order that the latter may apply the
proceeds thereof to the satisfaction of their credit.
a. Novation
b. Compensation
c. Confusion
d. Cession

This term refers to a simulation of contract where the contract of C

the parties is different from their true agreement.
a. Complete
b. Relative
c. Absolute
d. Total

Consensual contracts are not perfected until the delivery of the False
object of the obligation.
a. True
b. False

A voidable contract may only be annulled through a court action. True?

a. True
b. False

This term is defined as the offer to pay on the part of the debtor D? (medyo nacut yung
and that the debtor has at, the offer the thing or amount to be paid. photo idk if the question
a. Application of payment makes sense)
b. Consignation
c. Cession
d. Tender of payment

A contract that is entered into by the debtor in order to place his B?

properties beyond the reach of his creditors is:
a. Voidable
b. Inexistent
c. Unenforceable
d. Rescissible

It refers to neglect or failure to communicate that which a party to a B

contract knows and ought to communicate.
a. Negligence
b. Concealment
c. Mistake
d. Intimidation
The fixing of the price of a contract can never be left to the A
discretion of one of the contracting parties. This is in accordance
with which characteristic of contracts?
a. Mutuality
b. Obligatory force
c. Relativity
d. Autonomy

When the sale of property is not performed within a year from the True?
date of the contract, regardless of the nature of the property and
the price involved, it must be in writing in order to be valid.
a. True
b. False

A sold B his motorcycle with plate number XY2522 for 500,000 No?​ Feel ko rin
and promised to deliver it on May 15, 2020. On May 12, 2020, the
motorcycle while parked outside A’s house was struck by lightning
which fried its computer components. Is A still bound to deliver the
motorcycle to B?
a. Yes
b. No

A, B, C, and D, joint debtors, are obliged to give V, W, X, Y, and Z, B

solidary creditors, 20,000.
a. V may collect from B 5,000.
b. V may collect from B 20,000.
c. V may collect from B 1,000.
d. V may collect from B 4,000.

The passage of time as a mode of acquiring or losing a right D

including the extinguishment of an obligation is called:
a. Merger
b. Novation
c. Remission
d. Prescription

In April 2020, B filed an adjustment case against A, his lessee, and B

demanded that A vacate leased premises and to pay all the rental
arrears amounting to 40,000 pesos representing unpaid rent for
december 2019 and january to march 2020 at the rate of 10,000
per month. During trial, A presented a receipt issued for 10,000 for
the month of february 2020. Which of the following is true?
a. There is a conclusive presumption that rentals for the
months of december 2019 and january 2020 were already
paid.
b. There is prima facie presumption that rentals for the
months of december 2019 and january 2020 were already
paid.
c. B cannot demand that A leave the premises.
d. The penal obligations of B have been extinguished.
The offer made the debtor to pay his obligation to his creditor is B
known as:
a. Consignation
b. Tender of payment
c. Application of payment
d. Dation in payment

One of the ff. statements does not pertain to dacion en pago. C?

Which is it?
a. Ownership of the thing is transferred to the creditor
b. It does not require plurality of creditors
c. Debtor must be insolvent
d. Does not affect all properties of the debtor

Cecilia, the owner of a sari-sari store, purchased several bags of C

“pochi” candy worth 50,000 from Olga, an authorized dealer. On
due date, Cecilia tendered her payment to Olga consisting of
50,000 pieces of 1.00 coins. Which is true?
a. Olga may refuse to accept the payment and demand she
be paid in bills.
b. Tender made by Cecilia was valid because 1.00 coins
came from her sales and she had plenty of them.
c. Cecilia may consign payment in court if Olga refuses to
accept it.
d. Olga may not refuse to accept payment because what
Cecilia was offering as payment is money circulated in the
Philippines.

Sonny sold a parcel of land to Oscar. Unknown to Oscar, Sonny A/C? Ok parang mas
prepared a written contract but for a mortgage instead of a C?r
contract of sale. Sonny presented the contract to Oscar but he
hurriedly signed the same without reading since they had already
agreed on the price and the property involved. After 4 years, Oscar
reviewed his contract with Sonny, and upon consultation with a
lawyer, discovered that it was actually a contract of mortgage. By
this time, Sonny proceeded to foreclose the property and
attempted to enforce the mortgage. Under the circumstances
which of the following is correct?
a. The contract can ask for reformation on the ground of
fraud.
b. The parties can no longer ask for annulment of the contract
on the ground of fraud because the prescriptive period to
do so has already prescribed.
c. The parties can ask for annulment of contract on the
ground of fraud.
d. Oscar could no longer bring an action for reformation to
make it a contract of sale.

Obligation arise only from law False

When a person steals, the obligation to return what was stolen Delicts
arises. Which of the following is the specific source of the
obligation

Ramon loaned Matthew Php 1 000 000 out of consideration for his D. Matthew was already
friend and only on the condition that the money be repaid on 15 in delay after 15 July
July 2020. After shaking hands on the deal, Ramon transferred the 2020 and demand was
amount to Matthew’s bank account. When the agreed upon date no longer necessary
came, Matthew did not pay and hid from Ramon. A month later,
Ramon sued Matthew in court for payment of the loan. In his
defense, Matthew argued that Ramon should have demanded
payment from him first before suing him.

Which is correct?
a. Matthew was already in delay because he hid from Ramon
b. Matthew was not yet in delay because Ramon did not
make any demand upon him to pay
c. Matthew was not yet in delay because he was still capable
of paying back his debt
d. Matthew was already in delay after 15 July 2020 and
demand was no longer necessary

Artful Inc is an art gallery business which operates Multiple artisan The company is liable
houses all over manila to attract new talent they offer their services because of its failure to
to upcoming artists who seek buyers for their works as part of their observe the diligence of
arrangement the company requires the artwork to be stored in a good father of a family
their facilities and charge a deposit fee from the artists when one in preserving the
of the company employs failed to check the climate control of the artworks
storage facilities one night and malfunction occurred and the
stored artworks were destroyed due to extreme humidity the
company now seeks to avoid liability claiming that artworks are
delicate and that damage to them is an inherent risk in their
handling which of the following statements is correct

a. The company is not liable because it exercise due

diligence of a good father of a family and this was an
unforeseen accident
b. The company is liable because of its failure to observe the
diligence of a good father of a family in preserving the
artworks
c. the company is not liable because the storage If artwork
carries with it an assumption of risk on the part of the
owner
d. the employee of the company is the one liable

Cornerstone inc is a construction company engaged in the cornerstone inc because

business of constructing residential buildings the company was it failed to complete this
engaged by sharon to build her three storey house in quezon city project at the agreed
with an agreed-upon date of completion by december 15 2020 upon time
sharon fully paid the company for their fees and costs of
construction due to delays and their suppliers the company was
not able to complete the house and time six months passed and
the house was still not completed sharon frustrated at the
company's work has a new construction firm to finish the project
when the project was completed sionil demanded cornerstone inc
to pay for the costs incurred in hiring the other firm to finish your
health who was liable to pay for this

a. Sharon because she did not make an official demand upon

cornerstone inc to complete the project
b. Sheeran because she could have waited for the completion
of the house first
c. cornerstone inc because it was guilty of defrauding sharon
d. cornerstone inc because it failed to complete this project at
the agreed upon time

In the contractual relationship the right to sue a party for future False
fraud may be waived if supported by sufficient monetary
consideration

Bill borrowed 15000 from Mary and promised to pay it back when Obligation with a Term
he can which he hopes isafter the community quarantine is lifted.
Mary out of compassion since their friends what kind of obligation
is this

Erik asked his brother, Wally, to loan him his sports utility vehicle Pure Obligation??
so that he can use it for his trips out of town. Eric said that he
needed it for his guided tours in order to make a living and made it Obligation with a Term?
clear that ​he will only return it once he was finished with each trip​.
Wally being the younger sibling, accedes to the terms of Eric.

What kind of obligation is this?

a. Pure Obligation
b. Conditional Obligation
c. Obligation with a Term
d. Void Obligation

In exercising the right of resolution against a debtor who has failed False
to perform an obligation, the creditor must have exhausted all
other remedies first

Farrah is a college student on her final year. While she is confident Conditional Obligation
that she will graduate, her grades were very low in the previous
term which resulted in her being placed on academic probation. In
order to encourage her to work, Farrah’s father promises to give
her a car this Christmas when she graduates.

What kind of obligation is this?

Franco went to BDO to apply for a business loan in the amount of Franco is liable to pay
Php 10 000 000 payable in 5 years. During his application the entire loan
interview with the bank manager, he submitted his personal immediately
information and financials. To support his loan application, Franco
promised to give his Rolex Watch as collateral through a deed of
chattel mortgage. HIs loan is eventually approved on the condition
that it be repaid on a monthly installment for the next five years.
Franco agrees and signs the loans agreement and deed of chattel
mortgage in favor of BDO. A year later, Franco meets a watch
collector who offers to buy his Rolex for 5 million pesos. Franco
agrees to sell the watches.

When BDO found out about this, they sent a demand letter
demanding the full payment of the loan. Franco argued that under
their loan agreement, he is only required to pay monthly
installments until the end of the five year term. He even adds that
he has paid all installments on time thus far.

Which of the ff is correct

a. Franco is liable to pay the entire amount only at the end of

the 5 year period
b. Franco is liable to pay only the installments which are dues
as of the time of BDO’s demand
c. Franco is liable to pay the entire loan immediately
d. Franco is liable to pay only penalties under the loan
agreement
 Brian is legally obliged
to give Stewart the
painting and no longer
had the option to pay
him in cash

Which of the following statements is correct

a. Brian is legally obliged to give Stewart the painting and no

longer had the option to pay him in cash
b. Brian is legally obliged to pay Stewart but still has the
choice to pay him in cash
c. Stewart does not have the right to demand payment other
than cash because he is not the debtor
d. Stewart has the right to be paid either in cash or the
painting but may only choose on the due date

Preston, Cle and Ana are siblings who were granted a housing Up to 500 000 from each
loan by ABC Bank to finance their purchase of a house and lot sibling
amounting to 1 500 000
D? Is this a joint
Payment was to be made after 5 years. After signing the loan obligation idk skdh
agreement, the siblings agree among themselves to contribute
equally in repaying the loan. Preston being the eldest, assured his
siblings that he would pay the entire debt if they had trouble
coming up with their shares in the loan
Upon the loans due date, how much can ABC Bank legally
demand from each siblings
a. Up to 1 500 000 from any of the siblings
b. Up to 500 000 from each sibling unless one sibling fails to
pay in which case the entire amount may be collected from
any of them
c. Up to 1 000 000 from preston and up to 250 000 each
from cole and ana
d. Up to 500 000 from each sibling

Phil signed a contract to sell over a condominium with a selling B?

price of PHP 1 200 000 payable in 12 monthly installments. The
contract states that in case of failure to pay any installment, the
entire amount shall become due and demandable. On the second
month, phil’s check payment bounced and he was not able to pay
the month’s installment

How much is he now liable to pay under the contract to sell?

a. 200 000
b. 1 100 000
c. 100 000
d. 1 200 000

Avery was loaned 1 200 000 by her parents for her restaurant stall Avery is not obliged to
business payable upon demand. Since they were husband and pay because both
wife, Avery’s parents treated them the loan as a joint and several parents should make the
credit which could be paid to either or both of them. demand
B? (I’m not sure if
After 6 years avery still had not paid her loan. At this time she had nagaapply dito yung
a falling out with her father and they were no longer on speaking kung sino magdemand
terms. Incensed at her daughter’s attitude, Avery’s father sa kanya magbabayad)
demanded the full payment of the loan

Which of the following statements is correct?

a. Avery must repay half of the loan to her father
b. Avery must repay the entire loan amount to her father
c. Avery must repay the loan amount divided equally between
her parents
d. Avery is not obliged to pay because both parents should
make the demand

Carl, Rick and Dorothy are solidary debtors under a Loan Dorothy is not legally
Agreement to Central Banking, Inc in the amount of 1 500 000. entitled to be reimbursed
Payment fell due on 01 January 2020 and a formal demand letter by Rick and Carl
was sent to all of them by the bank for payment of the loan. Due to
the pandemic, no further action was taken by the bank. Ten years C? I’m not sure but it’s
later, the bank realized its mistake and demanded payment again solidary? Shux hajshdh
from them. Dorothy decided to settle the matter and paid the entire
amount. Dorothy now asks Rick and Carl for their contributions so
she could be reimbursed for the payment she made to Central
Banking, Inc.

Which of the following statements is correct?

a. Dorothy is not legally entitled to be reimbursed by Rick and
Carl
b. Dorothy may legally demand the refund of her payment to
the bank corresponding to the shares of Carl and Rick in
the loan payment
c. Dorothy is legally entitled to be reimbursed by Rick and
Carl
d. Dorothy may legally demand the refund of the entire
payment

Ruth is legally entitled to

be seated in business
class with her clients

So that she could join her clients in business class. Irate, the
supervisor insisted that she should just accept the upgrade since
her seat had been booked already in their system and the flight
was due to leave in 10 minutes.
Which of the following statements i correct and applicable to the
situation
a. Ruth has no legal right to refuse a seat upgrade since this
would delay the flight
b. Ruth is legally entitled to demand a seat upgrade
 c. Ruth is legally entitled to be seated in business class with
her clients
d. Ruth has no legal right to be seated in business class and
should accept the seat upgrade

Mallory’s consent is
necessary in order for
the loan to be
extinguished by the sale
of her business to
Carlos

Equivalent in value, business losses notwithstanding. Mallory

thought on this but was conflicted. She knew that she had a viable
business and would be able to recover once quarantine
restrictions were lifted. However, there was no telling when that
would be.

Which of the following statements is correct and applicable to this

situation?
a. Mallory’s consent is not necessary for Carlos to be able to
legally appropriate mallory’s business in payment of the
loan
b. Carlos may legally demand payment of damages because
Mallory used the loan to attract third persons to become
franchisees
c. Mallory’s consent is necessary in order for the loan to be
extinguished by the sale of her business to Carlos
d. Carlos may legally demand that ownership of the business
 be transferred to him by Mallory since she defaulted on her
loan

Frankie lives in One Rockwell, a condominium located in Makati

City. Being an exclusive residential condominium, it was guarded
by