MULTIPLE CHOICE

Direction. Choose the letter that best reflects the correct answer.

1. Which of the following is not an obligation with a period?

a. “Payable soonest”
b. An obligation payable little by little
c. Will pay you P10,000 “if I like”
d. Payable “within 2 years from today”
e. All of the above

2. If the obligation is payable in foreign currency

a. The obligation is void.

b. The obligation is valid, but stipulation is void.
c. The creditor can compel the debtor to pay in foreign currency as per agreement.
d. The stipulation and the obligation are void.

3. Which of the following statements is false?

a. The nullity of the principal carries with it that of the penal clause.
b. Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be
demanded.
c. I will pay you P10,000 “soonest” is for the benefit of the debtor.
d. Condonation is essentially gratuitous.

4. “I’ll give you my car one year after your death.” The obligation is

a. Valid, because the event is sure to come.

b. Valid, the obligation is conditional.
c. Valid, but disregard the condition
d. Void, not legally possible.

5. A sold his cow to B for P2500. No date was stipulated for the delivery of the cow. While still in the
possession of A, the cow gave birth to a calf.

a. A is entitled to the calf because it was born before his obligation to deliver the cow arises.
b. A is entitled to the calf as B has not paid the price.
c. B is entitled to the calf which was born after the perfection of contract.
d. B, in order to be entitled to the calf, should pay additional cost for the calf to be agreed upon by
both parties.

6. Statement No. 1: The concurrence of more than one creditor or more that one debtor in one and the
sane obligation implies solidarity.

Statement No. 2: In alternative obligations where the right of choice is exercised by the creditor, consent
of the debtor as to the creditor’s choice of which presentation to perform is necessary.

a. Both statements are true.

b. Both statements are false.
c. Statement No.1 is true while statement No. 2 is false
d. Statement No.1 is false while statement No. 2 is true.

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7. The kind of compensation which may only be raised by the creditor and not by the debtor in the
obligation to give gratuitous support:

a. Judicial compensation
b. Conventional compensation
c. Facultative compensation
d. Legal compensation

8. Statement No. 1: Legal compensation takes place by operation of law even if the parties may not be
aware of it.
Statement No. 2: The indivisibility of an obligation necessarily implies solidarity.

a. Both statements are true.

b. Both statements are false.
c. Statement No.1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No 2. Is true.

9. Statement No. 1: Responsibility arising from fraud is demandable in all obligations. A waiver of an
action for future fraud is void.

Statement No. 2: When the fulfilment of the condition depends upon the sole will of the debtor, the
conditional obligation shall be void. If it depends upon chance or upon the will of a third person, the
obligation shall take effect in conformity with the provision of laws.

a. Both statements are true.

b. Both statements are false.
c. No.1 is false, No. 2 is true.
d. No. 1 is true, No 2. is false

10. Statement No.1: D obliged himself to give C a specific car tomorrow. If D. failed to deliver tomorrow
after demand is made, C may compel D to do his obligation and may ask for damages.

Statement No. 2: D obliged himself to deliver a car to C tomorrow. If D failed to deliver tomorrow after the
demand is mad, C’s right is to ask a third person to deliver a car to him at the expense of D plus damage.

a. Both are true.

b. Both are false.
c. No.1 is true; No. 2 is false.
d. No. 1 is false; No 2. is true.

11. A person obliged to give something must preserve the object using a standard of care or diligence.
This standard of care or diligence may be:

a. diligence provided by law.

b. diligence provided by agreement of the parties.
c. diligence of a good father of the family.
d. any of the above.

12. An obligation wherein various things are due but the complete performance of all of them is necessary
to extinguish the obligation.

a. Facultative obligation.
b. Conjoint obligation.
c. Alternative obligation.
d. Pure or simple obligation.

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13. D1, D2 and D3 are solidary debtors of C for P30,000. The obligation was in writing. After the lapsed of
the ten-year prescriptive period, which of the following statement is incorrect.

a. If D1 paid C knowing that the obligation has already prescribed, D1 cannot ask reimbursement
from D2 and D3.
b. If D1 paid C not knowing that the obligation has already prescribed, D1 cannot ask
reimbursement from D2 and D3.
c. If D1 paid C not knowing that the obligation has already prescribed, his right is to proceed against
C because there was undue payment.
d. None of the above.

14. S owns specific ring and sells it to B for P10,000 B paid S the price, and S promised to deliver the ring
five (5) days after. After the sale, S gets a loan from X and pledged the ring in a private instrument.

Statement 1 - Between B and X, B has got a better title because the pledge did not appear in a public
instrument.

Statement 2 - However, if S delivers the ring to X, X will have a better title because there was delivery.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

15. S sold to B a specific car for P10,000 and promised to deliver on December 25, 2010. The next day,
after the sale is made, he sold the same car to X and delivered it to X on the same day. If no delivery is
made by S to B on December 26, 2010, which of the following is correct?

a. S is not in default because there was no demand.

b. B can cancel the contract between S and X because the contract of S and B was perfected ahead
of X.
c. S is liable to B for the value of the car plus damages.
d. S is in default, even if there was no demand. Hence, he will answer for damages.

16. Change of persons or objects:

a. Confusion
b. Novation
c. Solutio indebiti
d. None of the above

17. Statement No. 1: In solutio indebiti, the contract of the par- ties is the basis for damages in case of
non-performance.

Statement No. 2: "Dolo", as a ground for awarding dam- ages, is the deliberate intention to cause damage
or injury to another person.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

18. Statement No. 1: "I will give you a specific car if you will not marry X this year (2010). If by the end of
2010, both parties are alive and no marriage has taken place, my obligation is extinguished.

Statement No. 2: "I will give you P10,000 if you cannot make a dead man alive. This is an impossible
condition, obligation not demandable.

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 a. Both are true.
b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

19. A, B and C are joint debtors of joint creditors W, X, Y and Z in the amount of P300,000. How much
can W and X collect from B?

a. P 75,000
b. P150,000
c. P100,000
d. None of the above

20. Which of the following is considered as quasi-contract?

a. Solutio indebiti.
b. When the third person, without the knowledge of the debtor, pays the debt.
c. Reimbursement due the person who saved property during fire or storm without the knowledge of
the owner.
d. All of the above.

21. Statement No. 1: The receipt of the principal obligation without reservation as to the payment of
interest shall raise conclusive presumption that the interest is also paid.

Statement No.2: The receipt of the latter installment of a debt without reservation as to prior installment,
shall not raise a conclusive presumption that the prior installment is

also paid.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No, 2 is true.

22. Statement No. 1: If the obligation does not fix a period, but from its nature and the circumstances, it
can be inferred that a period was intended, the court may fix the duration thereof. Once it is fixed by the
court, the parties cannot change the fixed date for performance.

Statement No. 2: "I will give you P10,000 as soon as possible." This is an obligation with a period for the
benefit of both the debtor and creditor.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false
d. No. 1 is false; No. 2 is true.

23. Example No. 1: D obliged himself to give C P10,000. However, the day before the obligation falls due,
D's apartment was completely gutted by accidental fire. There is no question that the money was also
razed by fire. The obligation of D is totally extinguished because of fortuitous event.

Example No. 2: D obliged himself to pay C P10,000 with 6% interest. On the due date, D tendered
P10,000 with a promise to pay the P600 interest the day after. If C refused to accept, he can be
compelled to accept the tendered payment because the obligation is divisible.

a. Both are true.

b. Both are false
c. No. 1 is true; No. 2 is false.

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 d. No. 1 is false; No. 2 is true.

24. Example No. 1: D for P10,000 mortgaged his land to C. C instead of a deed of mortgage executed a
deed of sale and let D sign his name. D's right is to go to court and ask for annulment.

Example No. 2: D obliged himself to give object No. 1 or object No. 2 to C. In here, both objects are due.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

25. S owns an oil painting. Being in need of money, S sold the painting to B for P1,000. After the sale, S
discovered that the painting was valuable and was worth P5,000.

a. S may rescind the contract on ground of lesion or inadequacy of cause.

b. S may annul the contract on ground of fraud.
c. S may annul the contract on ground of error.
d. Bis entitled to the benefit of the contract because it is valid and binding.

26. G was appointed guardian of S, the latter being 16 years old. S sold his parcel of land in writing to B
valued at P100,000 for P75,000, suffering lesion by 1/4 of the value. What is the status of the contract?

a. Rescissible
b. Unenforceable
c. Enforceable
d. Voidable

27. On June 1, 2010, S sold to B the former's horse for P10,000. S promised to deliver on June 25, 2010,
while B did not promise when to pay.

a. B can demand delivery from S anytime after June 1, upon payment of the price of the sale.
b. S cannot demand payment until he delivers the horse.
c. Obligation of B to pay is subject to the condition that S will deliver the horse.
d. S can demand from B payment anytime from June 1, because B's obligation is not subject to any
condition.

28. Example No. 1: D owes C P10,000 due on December 25, Cowes D P6,000 due on December 25. D's
obligation is guaranteed by G. On the due date, D is insolvent. G is li- able to C for P10,000, he (G)
cannot set up compensation because he is not a principle debtor.

Example No. 2: D owes C P10,000 payable on December 25. Later, D, through intimidation, was able to
make C sign a promissory note stating that C is indebted to D for the same amount. In here, D cannot be
acquired to pay C P10,000 because he (D) can set up compensation against C.

a. Both examples are true.

b. Both are false.
c. Only No. 1 is true; No. 2 is false.
d. Only No. 1 is false; No. 2 is true.

29. In which of these cases is advanced payment recoverable by the debtor?

a. If the payment is only of interest credited for the proper period.

b. If the debtor voluntarily paid the obligation knowing that it is not yet due and demandable.
c. If the debtor was unaware of the period?

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 d. If the obligation is reciprocal and both parties advanced payment.

30. A judicial relation known as Negotiorum Gestio takes place.

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 a court to take the property or business of another.
d. None of the above.

31. A owes B P2,000 demandable and due on September 10, 2010. B, on the other hand, owes A P2,000
demand- able and due on or before September 30, 2010. If B claims compensation on September 10,
2010, can A rightfully oppose?

a. No. B, who was giving the benefit of the term, may claim compensation because he could then
choose to pay his debt on September 10, 2010 which is actually "on or before September 30,
2010."
b. Yes, A can properly oppose because for compensation to take place, mutual consent of both
parties is necessary.
c. Yes, A can properly oppose and if B still refuses to accept his payment made on September 30,
2010, A can deposit his payment in court.
d. None of the above.

32. The wrongful act or tort which causes loss or harm to another is called:

a. Damages
b. Damage.
c. Injury
d. None of the above

33. The loss or harm suffered by one person on his property is called:

a. Damages
b. Damage
c. Injury
d. None of the above

34. When the debtor binds himself to pay when his means permit him to do so, the obligation is:

a. Pure
b. Conditional
c. With a period
d. Simple
e. None of the above

35. Every obligation whose performance does not depend upon a future or uncertain event, or upon a
past event un- known to the parties, is demandable at once. This refers to:

a. Divisible and Indivisible obligations

b. Joint and Solidary obligations
c. Obligations with a period
d. Pure obligation

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36. When there is a return of what was not lawfully required, there is:

a. Solution indebiti.
b. Negotiorum gestio.
c. Cession en pago.
d. None of the above.

37. Consignation alone shall give rise to the extinguishment of an obligation, EXCEPT:

a. When the creditor is absent or unknown, or does not appear at the place of payment.
b. When he is incapacitated to receive the payment at the time it is due.
c. When two or more persons claim the same right to col- lect.
d. When the title of the obligation has been lost.
e. None of the above

38. Obligation may be modified by:

a. Changing their object or principal conditions.

b. Substituting the person of the debtor.
c. Subrogating a third person in the rights of the creditor.
d. All of the above.

39. The following are causes vitiating consent, EXCEPT:

a. Violence
b. Intimidation
c. Fraud
d. None of the above

40. D owes C P10,000 payable on December 25. Later, D forced C to sign a promissory note for P10,000
payable on December 25. If all the other requisites of compensation are present, are both debts
extinguished?

a. Yes, under legal compensation.

b. No, B's consent was obtained by force.
c. Yes, with the approval of the court.
d. Not given.

41. Which of the following is not a conditional obligation?

a. D to give C P1,000, if C passes the examination.

b. D to pay C P1,000, if C has the means.
c. D to give Ca horse, if C marries X.
d. None of the above.

42. The passage of time extinguishes the obligation:

a. Prescription
b. Fulfillment of resolutory condition
c. Arrival of resolutory period.
d. Remission
e. Rescission

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43. The delivery and transmission of ownership of thing by the debtor to the creditor as an accepted
equivalent performance of an obligation is called:

a. Dacion en pago
b. Payment by cession
c. Consignation
d. Remission

44. Which of the following is not a special mode of payment?

a. Dacion en pago
b. Payment by cession
c. Tender of payment and consignation
d. Consignation alone without the need of tender of payment in cases provided for by law
e. None of the above

45. Example 1-D obliged himself to give C a specific ring upon failure to give C P10,000.
Example 2-D obliged himself to give Ca specific ring. However, if he so desires, D may instead give C
P10,000.

a. Both are valid obligations.

b. Only No. 2 is valid.
c. Only No. 1 is valid.
d. Both obligations are invalid because both depends upon the sole will of D.

46. A and B are solidary debtors of X and Y, solidary creditors to the amount of P4,000. On the due date, X
renounced in favor of A the entire obligation. Which of the following is correct?

a. B shall give A P2,000.

b. Y can still collect from A or B P2,000.
c. Y can collect from X P2,000.
d. Any of the three.
e. None of the above.

47. The extinguishment of obligations when two persons, in their own right, are debtors and creditors of
each other is called

a. Compensation
b. Merger
c. Remission
d. Novation

48. Meeting in one person of the characteristics of both debtor and creditor in one and the same obligation
extinguishes the obligation by way of:

a. Innovation
b. merger of confusion.
c. compensation or set-off
d. condonation or remission

49. Consignation alone, as a special form of payment, may extinguish an obligation under any of the
following stances. Which is the exception?

a. When the creditor is absent, or is unknown or does not appear in the place of payment.
b. When the creditor is capacitated to receive payment

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 c. When the creditor refuses to issue receipts.
d. When there are two or more persons claiming title to
e. one and the same obligation.
f. When title to the same obligation has been lost.

50. The act of abandoning all his properties in favor of his creditors so that the latter may cause their sale
and apply the proceeds thereof to their claims proportionately is called:

a. dacion en pago
b. set off
c. payment by cession
d. tender of payment with consignation

51. Conrad and Charlie are jointly indebted to Pete for P100,000. Pete assigned his interest to Crispin who
assigned it back to Conrad.

a. The debt is totally extinguished by compensation.

b. The debt is totally extinguished by merger.
c. The debt is partially extinguished by compensation.
d. The debt is partially extinguished by merger.

52. Which obligation is not valid?

a. “I promise to give you P100,000 on December 25.2010."

b. "l promise to give you P100,000, if I go to Sampaloc, Quezon this weekend"
c. “I promise to give you P100,000 if your patient dies".
d. "I promise to give you P100,000 if you pass the May 2010 CPA Board Examination."

53. Three of these are characteristics of payment by cession. Which is the exception?

a. complete or partial insolvency.

b. more than one debt.
c. abandonement of all the debtor's properties except those exempt from execution
d. one debtor, one creditor.

54. A source of obligation where there exists criminal negligence

a. culpa contractual
b. quasi-contract
c. culpa delictual
d. culpa aquiliana

55. Statement No. 1: When the prestation is negative and the debtor is precluded from doing an impossible
or unlawful condition, the entire obligation, including the condition, is
null and void.

Statement No. 2: In an obligation subject to a period, what is suspended is the birth of the obligation.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true.

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56. Which of the following is an obligation with a period for the benefit of both the debtor and the creditor?

a. Payable if I like
b. Payable when you like
c. Payable on or before December 25, 2010
d. Payable on December 24, 2010

57. Statement No. 1: In culpa aquiliana, negligence on the part proved of the debtor is a substantial issue
which must be by the creditor in order to be entitled to an award of damages.

Statement No. 2: The highest standard of care that a per- son obliged to give something is that diligence
of a good father of a family.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 2 is false while statement No. 2 is true.

58. Which of the following obligations is not subject to a period?

a. payable soonest
b. payable "little by little"
c. payable whenever "I like it"
d. payable "when my means permits me to"

59. The following, except one, are secondary modes of extinguishing obligations. Which is that exception?

a. death of both parties

b. prescription
c. compromise
d. changing the object of the obligation with the consent of the parties

60. Which of the following is not a generic obligation?

a. obligation to pay P5,000

b. obligation to deliver 2009 Nissan Sentra Series III
c. obligation to deliver 50 cavans of rice
d. obligation to give a delimited generic object

61. Statement No. 1: D obliged himself "to pay C the sum of P50,000 which he owes him when he (D) feels
like it". This kind of obligation is valid and legally enforceable.

Statement No. 2: After the obligation became due and demandable, the creditor agreed to a proposal by
the debtor to give him a specific cow instead of paying P25,000. This is a case of novation by changing the
term or the object of an obligation.

a. Both are true.

b. Both are false.
c. No. 1 is true, No. 2 is false.
d. No. 1 is false, No. 2 is true.

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62. A and B are the debtors and X and Y are the creditors in a solidary obligation to the tune of P80,000.
On due date, X renounced in favor of A the entire obligation which was validly accepted by A. Which of the
following is true?

a. B shall give P40,000 to A.

b. Y can collect from X P40,000.
c. Y can still collect from A or B the whole amount.
d. A can collect P40,000 from B.

63. Statement No. 1: In alternative obligations, it is the choice of which prestation to perform made by the
debtor that will convert the alternative obligation into a pure or simple one.

Statement No. 2: In facultative obligations, the right of substitution may be transferred to the creditor.

a. Both statements are true.

b. Both statement are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true.

64. The following, except one, are requisites of payment as a mode of extinguishing an ordinary obligation.
Which is the exception?

a. complete or full payment

b. payment in due course when the obligation is due and demandable
c. payment using negotiable instrument
d. payment using legal tender, except if payable in foreign currency

65. Not a ground for damages:

a. culpa
b. bad faith
c. dolo causante
d. mora

66. Statement No. 1: An obligation which has for its object the delivery of a "delimited generic" object may
be lost by reason of fortuitous vent.

Statement No. 2: There can be no delay in an obligation not to do.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement no. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true.

67. D obliged himself to give C 100 cavans of rice on December 25, 2010. On said date, D failed to make
delivery, despite repeated demands from C.

a. C can compel D to deliver 100 cavans of rice plus damages.

b. C has no remedy under the law.
c. C may ask a third person to deliver 100 cavans of rice to him, the value recoverable from D plus
damages.
d. D can rescind the contract because the object is indeterminate.

68. Wrong committed independent of contract and with criminal intent is

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 a. Culpa contractual
b. Culpa aquillana
c. Quasi-contract
d. None of the above

69. A and B signed a promissory note to borrow P6,000 from X, Y and Z, payable in 6 months’ time. B
gave as a P10,000 diamond ring as security for the amount borrowed. How much can Y collect from B?

a. P1,000
b. P6,000
c. P2,000
d. P3,000

70. If in the situation given in No. 69 above, the diamond ring is returned by agreement to B, which of the
following statement is correct?

a. Principal obligation is extinguished.

b. Only P2,000 of the obligation is extinguished.
c. Only P3,000 of the obligation is extinguished.
d. None of the above.

71. Which of the following is not an obligation with a period?

a. "Payable soonest"
b. An obligation payable little by little
c. Payable "within 2 years from today"
d. None of the above

72. A. B and C executed a promissory note worded as fol- lows: We promise to pay X, Y and Z the sum of
P90,000 (Sgd.) A, B and C

a. A is obliged to pay to X, Y and Z P90,000.

b. A is obliged to pay X P30,000.
c. A is obliged to pay X P60,000.
d. None of the above.

73. The act of abandoning or transferring all the debtor's prop- erty to his creditors so that the creditors may
sell them, and out of its net proceeds to recover their claim is called

a. Dacion en pago
b. Payment by cession
c. Tender of payment and consignation
d. Remission

74. The distinction between period and condition is

a. Period may or may not happen.

b. Condition will always happen.
c. Period may refer to a past event unknown to the parties.
d. Answer not given.

75. Solidary debtors A, B and C owes joint creditors X, Y, Z and W P12,000. X, Y and Z can collect from a

a. P12,000
b. P6,000
c. P9,000

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 d. P3,000

76. Statement No. 1: "I will give you a specific car if you will not marry X this year (2010). If by the end of
2010, both parties are alive and no marriage has taken place, my obligation is extinguished.

Statement No. 2: "I will give you P10,000 if you cannot make a dead man alive. This is impossible
condition, not demandable.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

77. A and B are jointly and severally liable to C for P20,000. A is a minor.

a. C can collect P20,000 from B.

b. C can collect P10,000 from A, that is the share of B.
c. C can collect P20,000 because minority is not a defense.
d. C can collect P10,000 from B

78. The debtor shall lose every right to make use of the period except:

a. When he does not furnish a guaranty or security to the creditor.

b. When after the obligation has been constituted, he becomes insolvent, unless he gives a
guaranty or security for the debts.
c. When the debtor attempts to abscond.
d. When the debtor violates any undertaking in considerations of which the creditor agreed to the
period.

79. Which of the following is not a special mode of payment?

a. Dacion en pago
b. Payment by cession
c. Tender of payment
d. None of the above

80. A owes B P100,000 due on December 11, 2010. A mort- gaged his house to B as guaranty for the debt.
Shortly, how- ever, the mortgaged house was completely destroyed by typhoon "Nitang". Thereafter, B
demanded payment from A on October 11, 2010. Is B's demand valid?

a. No. The obligation is one with a definite period, thus the creditor cannot demand fulfillment of the
obligation as such would be prejudicial to the rights of the debtor.
b. No. The obligation is extinguished because the object of the obligation is lost through a fortuitous
event.
c. Yes. The debt becomes due at once because the guaranty was lost even though a fortuitous event,
unless the debtor can mortgage another property that is equally
satisfactory.
d. Yes. The debt becomes due at once because from the tenor of the obligation, the period established
is for the benefit of the creditor solely thereby giving the creditor the right to demand performance
even before the date stipulated.

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81. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-
debtors

a. if such payment was made before the obligation is due.

b. if such payment was made after the obligation has prescribed or become illegal.
c. if such payment was made in compliance with the demand made to him by all the creditors.
d. if such payment was made after the obligation has become due and demandable and notice of
payment was made only to him.

82. Statement No. 1: When the fulfillment of the suspensive or resolutory condition depends upon the sole
will of the debtor, the conditional obligation shall be void.

Statement No. 2: If the original obligation is subject to a suspensive or resolutory condition and the contract
is novated the new obligation shall be under the same conditions unless otherwise stipulated.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

83. A sold to B the former's horse for P5,000. No date is fixed by the parties for the performance of their
respective obligations. The obligation of A is:

a. To deliver the horse immediately as there is a perfected contract.

b. To deliver the horse upon the payment of B of P5,000
c. To deliver the horse within a reasonable time of two months from the contract date.
d. To rescind the contract as there is no time fixed for the
delivery and payment.

84. The substituion or change of an obligation by a subsequent one which extinguishes or modifies the
first, either by chang ing the object or principal conditions, or by substituting the person of the debtor,
rights subrogating a third person in the rights of the creditor is called:

a. Commodatum
b. Compensation
c. Merger
d. Novation

85. X obliged himself to give to Y his brand-new Rolex watch if the latter cannot make a circle that is at
the same time a square.

a. The obligation is unenforceable because the condition is immoral.

b. The condition is void because of the positive impossible condition.
c. The obligation is valid because the impossible condition is negative.
d. The obligation is void, not enforceable.

86. Proof of pecuniary loss is necessary for the award of:

a. Liquidated damages
b. Exemplary damages

14
 c. Actual damages,
d. Temperate damages
e. None of the above

87. In the execution of obligation, liability for malice or bad faith:

a. Extends to natural consequences even if they exceed the debtor's exceptions.

b. Extends only to results intended but excluding exemplary damages.
c. Is demandable in all obligations but may be renounced in advanced.
d. Extends not only to results intended but also to their foreseen consequences.

88. In contracts and quasi-contracts, the liability of the debtor who acted in good faith:

a. Extends to all natural and probable consequences of the breach of the obligation, and which the
parties have foreseen or could have reasonably foreseen at the time the obligation was constituted.
b. Extends only to results intended but excluding exemplary damages.
c. Extends to all damages which may be reasonably attributable to the non-performance of the
obligation.
d. Extends to all damages which may be renounced in advanced.

89. In delicts and quasi-delicts, the defendant shall be liable for:

a. Damages which are natural and probable consequences of the act or omission complained of
whether or not such damages have been foreseen or could have reasonably been foreseen by the
offender.
b. Not only for results intended but also to their foreseen consequences.
c. Damages which may be renounced in advanced.
d. Damages intended but excluding exemplary damages.

90. Extinguishes the obligation upon the happening of the condition:

a. Resolutory
b. Suspensive
c. Pure
d. None of the above

91. Extinguishment of debt may be made by creditor either verbally or in writing:

a. Partial payment
b. Implied remission
c. Express remission
d. None of the above

92. The creditor is entitled to recover damages and interest in addition to the penalty stipulated:

a. When the parties so agreed.

b. When the debtor refuses to pay the penalty.
c. When the debtor is guilty of fraud in the fulfillment of the obligation.
d. All of the above.

93. Which of the following is not a ground for the extinguishment of an obligation?

15
 a. Remission
b. Merger
c. Compensation
d. Death of either debtor or creditor
e. None of the above

94. Contracts entered into during lucid-interval:

a. Voidable
b. Unenforceable
c. Void
d. None of the above

95. An absolutely simulated or fictitious contract is:

a. Voidable
b. Void
c. Unenforceable
d. None of the above

96. The delay on the part of the creditor to accept the performance of an obligation:

a. Dolo incidente
b. Mora accipiendi
c. Dolo causante
d. Mora solvendi

97. When the period is "on or before a date", the debtor has the benefit of the period. This benefit is lost
and the obligation becomes demandable when

a. the debtors attempt to abscond.

b. after contracting the obligation, the creditor suspects the debtor to becoming insolvent.
c. the guarantee given by the debtor is not acceptable to the creditor.
d. demand by the debtor could be useless.

98. A was badly in need of money. He offered to sell his parcel of land to B for P100,000.00. B agreed and
paid A the P100,000.00 and A signed a receipt. When B wanted to register the sale, he needed a Deed of
Absolute Sale. What can B do?

a. B may sue A to return the P100,000.00 under the legal maxim "No one shall enrich himself at the
expense of another".
b. B may posses and utilize A's land as a buyer in good faith.
c. B may compel A to execute the Deed of Absolute Sale because the contract is valid.
d. B cannot get back the P100,000.00 because the contract is not enforceable.

99. A promissory note signed by D and dated March 15, 2010 is worded as follows: "I promise to pay C the
sum of Fifty Thousand Pesos (P50,000) provided that if she should fail in the October 2010 CPA
Examination, she shall return to me said amount." The above note gives rise to an obligation with

a. Suspensive condition
b. Casual condition
c. Resolutory condition

16
 d. None of the above

100. "Conrado will continue giving Pedro the latter's meal allowance until the end of this year" is an
obligation subject to:

a. a resolutory period.
b. a suspensive condition.
c. a resolutory condition.
d. a suspensive period.

101. Statement No. 1: In cases of extraordinary inflation, the basis of payment is the value of the obligation
at the time it was constituted.

Statement No. 2: After substitution, the loss of the principal object through the fault or negligence of the
debtor shall render him liable for damages.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true.

102. Statement No. 1: Payment by cession does not totally extinguish the whole obligation.

Statement No. 2: In obligation with penal clauses, it is necessary for the creditor to show proof of actual
damages suffered by him on account of the non-performance of the obligation by the debtor.

a. Both statement are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1. is false while statement No. 2 is true.

103. Statement No. 1: Merger taking place in the person of the guarantor shall extinguish only the secondary
contract such as the contract of guaranty but not the principal obligation.

Statement No. 2: When the debtor promises to pay his obligation "whenever his means permit him to do
so", the obligations is with a period.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true.

104. In three of the following cases, facultative compensation shall prosper. Which is the exception?

a. gratuitous support
b. civil liability arising from crime
c. mutuum
d. depositum

105. Statement No. 1: In solution indebiti, the contract of the parties is the basis for damages in case of
non-compliance.

17
Statement No. 2: Negligence, as a ground for damages, refers to the non-performance of an obligation with
respect to time.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is false while statement No. 2 is true.
d. Statement No. 1 is true while statement No. 2 is false.

106. Statement No. 1: The creditor may be compelled to accept payment in checks as long as the check is
negotiable.

Statement No. 2: An obligation payable "should the client die of diabetes" is an obligation subject to a
period.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true.

107. The buyer has the right to the fruit of the thing from:

a. the time the thing is delivered.

b. the time the contract is perfected..
c. the time the obligation to deliver the thing arises.
d. the time the fruits are delivered.

108. The kind of compensation which arises by way of proved counterclaim in a case is called:

a. legal compensation.
b. voluntary compensation.
c. judicial compensation.
d. facultative compensation.

109. Statement No. 1: In an obligation subject to a suspensive period, if the object is improved by time,
the same inures to the benefit of the creditor.

Statement No. 2: Culpa aquiliana is that fault which results from breach of contracts.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true.

110. Debtor obliged himself to deliver 100 cavans of rice on June 1, 2010. On said date, D failed to make
delivery de- spite repeated demands by C. In this case:

a. C has no remedy under the law.

b. C can compel D to deliver 100 cavans of rice plus dam- ages.
c. C may ask a third person to deliver 100 cavans of rice to him, the value recoverable from D plus
damages.
d. None of the above.

18
111. Statement No. 1: In alternative obligations, it is the notice of which prestation to perform made by the
debtor shall convert the alternative obligation into a pure or simple one.

Statement No. 2: In case of a joint obligation, the co-debtors may be held liable for the share of an insolvent
co-debtor.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. is true.

112. Insolvency of the debtor is required in:

a. Dation in payment
b. Payment by cession
c. Tender of payment and consignation
d. Application of payment

113. A, a minor, and B, a capable person, bind themselves solidarily to pay X the sum of P10,000:

a. A may be compelled to pay P10,000.

b. A may be compelled to pay P5,000 only.
c. B may be compelled to pay P10,000.
d. B may be compelled to pay P5,000 only.

114. D obliged himself to paint the house of C or to paint the picture of C, in a standing position, using 10
by 10 canvass. Later, because of financial reversés, C sold his house to X. Which of the following
statements is incorrect?

a. The obligation of D is extinguished because he cannot make a choice.

b. D may just paint the picture of C.
c. D may cancel the contract and ask for damages.
d. None of the above.

115. A and B are jointly indebted to C for P1,000. C assigns the credit to D and D assigns it back to A.

a. The debt is partially extinguished by compensation.

b. The debt is partially extinguished by merger
c. The debt is totally extinguished by merger.
d. The debt is not extinguished either totally or partially.

116. Requisites of application of payment, except

a. Debts are all due.

b. Debts are of different kinds. C. Two or more debts.

d. One debtor and one creditor.

167

19
117. Statement No. 1: Payment made by a third person who does not intend to be reimbursed by the
debtor is deemed to be a donation, which requires the debtor's consent. if the debtor's consent is not
given, the obligation is not ex- tinguish.

Statement No. 2: If the debtor's consent or permission is not given, but the third person paid the creditor,
his right is to proceed against the creditor for reimbursement and not against the debtor.

a. No. 1 is true, No: 2 is false. b. No. 1 is false, No. 2 is true. c. Both are false./

d. Both are true.

118. In tender and consignation: if after consignation is made, the creditor allow the debtor to withdraw
the thing depos- ited in court, which of the following statements is incorrect?

a. Co-debtors, guarantors, and sureties are released from the obligation unless they consented.

b. The obligation remain to subsist. c. The obligation is extinguished. d. None of the above.

119. Statements No. 1: Obligation for whose fulfillment a day certain has been fixed, shall be demandable
only when that day comes. Obligation with a resolutory period take effect at once, but terminate upon
arrival of the day certain.

Statement No. 2: D binds himself to pay "little by little". The

obligation is for the benefit of the debtor.

a. Both are true.

b. Both are false.

c. No. 1 is true, No. 2 is false.

d. No. 1 is false, No. 2 is true.

120. Statements No. 1: "I promise to pay within 2 years" is an

obligation with a period, the creditor having a right to demand payment within 2 years from the date of the
instrument.

Statements No. 2: Ten sacks of corn cannot be compensated (legal compensation) by ten sacks of rice.

a. Both are true.

b. Both are false.

c. No. 1 is true, No. 2 is false.

d. No. 1 is false, No. 2 is true.

121. Mr. Cruz executed a first mortgage of his house in favor of Mr. Dizon on May 15, 2010 to guaranty a
mortgage loan of P200,000 due of payment on May 15, 2013. On September 16, 2012, the house was
completely destroyed by typhoon. On September 18, 2012, Mr. Dizon demanded payment from Mr. Cruz
of the loan. Is Mr. Dizon's demand for payment valid?

a. No. The obligation is one with a definite period, so the creditors cannot demand payment until the
definite due date arrives.

20
 b. No. The obligation is extinguished because the object of the obligation is lost through a fortuitous
event.
c. Yes. The obligation becomes due at once because the benefit is solely for the creditor. The
creditor can demand payment even before the date stipulated.
d. Yes. The obligation becomes due at once because the guaranty was lost even though a fortuitous
event, unless the debtor can mortgage another property equally satisfactory.

122. Example 1-D promised to give C a specific car valued at P100,000 after C has killed X. Later, after
the killing, the contract was novated instead of giving C a specific car, he will just give a specific land to
be delivered on February 28, 2010. Meanwhile, both parties died. In here, the heirs of C may compel the
execution of the second contract, that is, the delivery of the specific land.

Example 2-S sold to B a specific residential house situated in Quezon for P1M, unknown to both parties,
one (1) hour before the sale, the property was totally gutted by fire caused by electrical defect. In here, B
can be required to pay the price of the sale, because the subject is determined. S's obligation to deliver is
extinguished, while B's obligation remain to subsist.

a. Both examples are true

b. Only No.2 is true, while No. 1 is false
c. Only No. 2 is false, while No. is true.
d. Both examples are false.

123. Which of the following obligation is void?

a. Obligation payable within a reasonable time.

b. Obligation payable if the debtor cannot make a circle at the same time a square.
c. Obligation payable if the debtor cannot make a dead man alive.
d. None of the above.

124. Mr. Debtor owes Mr. Creditor, who has two (2) legitimate emancipated children, P50,000 payable on
December 31, 2010.

a. If Mr. Debtor dies before December 31, 2010, Mr. Credi- tor cannot collect from the heirs of Mr.
Debtor.
b. If Mr. Debtor dies before December 31, 2010, Mr. Credi- tor can collect from the heirs of Mr.
Debtor.
c. If Mr. Creditor dies, his two (2) legitimate emancipated children cannot recover from Mr. Debtor
his obligation.
d. If both Mr. Debtor and Mr. Creditor die, the heirs of Mr. Creditor can collect from the heirs of Mr.
Debtor.

125. A owes B P5,000. C is the guarantor of A. A was able to pay B P3,000, thus leaving P2,000 unpaid.
X, against the will of A and without the knowledge of the partial payment made by A, paid B the sum of
P5,000. How does this payment affect the obligation?

a. The obligation is extinguished. X, however, cannot re- cover any amount from A since the
payment was made against will of A. Instead, A can demand payment from C, the guarantor, to
the amount of P5,000.
b. The obligation is extinguished. X, however, can demand only P2,000 from A as this is the amount
which benefited A. If A cannot pay, X, having been subrogatged into the rights of B can proceed
against guarantor C.

21
 c. The obligation is extinguished. X can demand P2,000 from A, but if A cannot pay, X cannot
ordinarily proceed against guarantor C because having paid against the will of A, X is not entitled
to subrogation.
d. X's payment, having been made against the will of A does not extinguish the obligation.

126. The officious manager or gestor is liable for any fortuitous event EXCEPT:

a. If he has undertaken risky operations which the owner was accustomed to embark upon.
b. If he has preferred his own interest to that of the own.
c. If he fails to return the property or business after demand by the oner
d. If he assumed the management bad faith
e. None of the above

127. A tie or juridical relation, which by virtue of a payment of what is not due, made through mistake, is
created between the person who paid and the one who received the payment, compelling the latter, in
consequence thereof, to re- turn what he has received:

a. Solutio indebiti
b. Natural obligation
c. Civil obligation
d. Moral obligation
e. None of the above

128. On October 4, 2010, A is indebted to B for P50,000 for a 20-day. A proposed to B that X will pay A’s
debt, and that A will be free from all liabilities. B. and X agreed to the proposal. On October 25, 2010,
when B tries to collect from X, he finds that X is insolvent. At the time of delegation, X was already
insolvent but this was not known to A. The insolvency is not of public knowledge. So B sues A on the
ground that it was A who made the proposal and that A really guaranteed X’s solvency. Decide.

a. A. is liable because he is presumed to have guaranteed X’s solvency.

b. A is not liable, because A does not know the insolvency of X at the time of delegation neither was
the insolvency of public knowledge.
c. A. is liable because he did not exercise due to diligence in determining the insolvency of X.
d. A is liabe because X agreed to the proposal to make himself solidary liable for the obligation.

129. Remission is:

a. Essentially gratuitous
b. Naturally gratuitous
c. Absolutely gratuitous
d. All of the above

130. Statement No. 1: The debtor of a thing cannot compel the creditor to receive a different one,
although the latter may be of the same value or more valuable than that which is due.

Statement No. 2: In dation in payment, ownership of the thing delivered is transferred to the creditor;
while in cession, it merely authorizes the creditor to convert the property into cash and out of the
proceeds to extinguish the obligation partially.

22
 a. Both are true.
b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

131. Effect of the loss of the thing in a facultative obligation. Which is incorrect?

a. Before substitution: if the principal thing is lost due to fortuitous event, there is no more obligation.
b. Before substitution: if the substitute thing is lost due to debtor's fault, there is no more obligation.
c. After substitution, if the principal thing is lost, the debtor is no longer liable even if it is was lost
due to his fault.
d. None of the above.

132. D1 and D2 are joint debtors of C1, C2, C3, and C4, sol- idary creditors to the amount of P1,000.
How much can C3 collect from D1?

a. 500
b. 1,000
c. 250
d. 125

133. On July 1, 2010, A signs a promissory note and binds him- self to pay X P100,000 plus 15% per
annum interest on June 30, 2012.

a. Before June 30, 2012, X can demand payment.

b. If on June 30, 2011, A is paying X, X cannot refuse the payment.
c. Because the period is for the benefit of the debtor, A can compel creditor X to accept payment
any date be- fore June 30, 2012.
d. Because the period is for the benefit of the debtor and creditor, X can refuse any tendered
payment before June 30, 2012

134. "I will give you this book provided that if I like to have it back, you will return the same to me".

a. The obligation is void, because the fulfillment depends

upon the will of the debtor.
b. The obligation is void, because the fulfillment depends
upon the will of the creditor.
c. The obligation is valid because the condition merely causes the loss of rights already acquired.
d. Combination of A and B.

135. D obliged himself to give a specific car to C on December 25, 2010, stipulating that D is liable even if
the thing is lost due to fortuitous event, and without the need of a demand. On the due date, the car got
lost due to fortuitous event. Which of the following is correct?

a. Obligation remains to subsist, but converted into monetary consideration.

b. C can compel D to deliver another car.
c. C can require another person to deliver a car, expenses chargeable to D.
d. Obligation is totally extinguished.

23
136. Dowes CP10,000 payable on December 25, while Cowes D P10,000 payable on December 30. In
here, C can set up compensation (or cum pondere) on December 25, and this is called:

a. Legal
b. Partial
c. Judicial or "set-off"
d. Facultative

137. In novation, which of the following is incorrect?

a. If the new obligation is void, original obligation shall subsist.

b. In expr omission, the insolvency of the new debtor shall not revive the action of the creditor
against the original debtor.
c. If the original obligation is subject to a suspensive condition, the new obligation is not subject to
the same condition unless stated.
d. If the condition is resolutory, the new is also resolutory condition, unless otherwise stated.

138. The following, except one, are primary modes of extinguisiing obligations. Which is the exception?

a. Confusion
b. Compensation
c. Condonation
d. Compromise

139. Which of the following does not have negligence as its basis?

a. Culpa contractual
b. Culpa aquiliana
c. Solutio indebiti
d. Culpa delictual

140. Source of obligation which is a rule of conduct, just and obligatory, promulgated by legitimate
authorities for common good, benefit and observance.

a. Contracts
b. Law
c. Quasi-contracts
d. Quasi-delict
e. Delict

141. In an obligation worded as follows: "I promise to continue allowing X to stay in my condo unit until he
marries," the
obligation is subject to:

a. Suspensive condition
b. Suspensive period
c. Resolutory condition
d. Resolutory period

142. X, Y and Z solidarily bound themselves to pay to solidary creditors A, B and C the amount of
P75,000.00. The loan was secured by a mortgage on B's land. Out of gratuity, A, in a public instrument,

24
renounced the obligation in favor of X, with the formality required by law. In this case, which statement is
correct?

a. The principal obligation is extinguished.

b. The real estate mortgage is extinguished.
c. Both the principal obligation and the mortgage are extinguished by remission.
d. Both the principal and the accessory obligations sub- sist.

143. D obliged to give C, either object No. 1 valued at P15,000; or object No. 2 valued at P10,000; or
object No. 3 valued at P5,000. All the objects were lost due to D's fault in the following order stated.

a. D's obligation is extinguished.

b. D's obligation is to pay the value of object No. 1 plus damages.
c. C's right is to demand the value of any of the object
plus damages.
d. None of the above.

144. In question No. 143, if object No. 1 is lost due to fortuitous event; No. 2 is lost due to debtor's fault;
No. 3 is subsisting;

a. The right of C is to demand the value of object No. 2 plus damages.

b. C has no right because he did not communicate what object the debtor will deliver.
c. The obligation of D is to deliver object No. 3.
d. D's obligation is totally extinguished.

145. D owes C P10,000 payable on December 25, Later, D forced C to sign a promissory note for
P10,000 payable on December 25. If all the other requisites of compensation are present, are both debts
extinguished?

a. Yes, under legal compensation.

b. No, B's consent was obtained by force.
c. Yes, with the approval of the court.
d. Not given.

146. Statement No. 1: Just before the obligation became due and demandable, the debtor proposed to
the creditor that he would give him a specific car instead of paying P150,000.00, and which proposal was
accepted by the creditor. Here, there is extinguishment of an obligation by way of dacion en pago.

Statement No. 2: After substitution in facultative obligations, the loss of the principal through the fault or
negligence of the debtor shall render him liable for damages in favor of the creditor.

a. Both are true.

b. Both are false.
c. No. 1 is true, No. 2 is false.
d. No. 1 is false, No. 2 is true.

147. Statement No. 1: In novation by way of expr omission, there can be a revival of the original debtor's
obligation should the new debtor turns out to be insolvent and such is of public knowledge.
Statement No. 2: In alternative obligations, what converts the same into a pure or simple obligation is the
choice of prestation to be performed by the debtor.

a. Both are true.

b. both are false.

25
 c. No. 1 is true, No. 2 is false.
d. No. 1 is false, No. 2is true.

148. A1, A2 and A3 obliged themselves solidarily to give Ca specific car valued at P12,000. On the due
date, C demanded delivery but the debtors failed to deliver. The next day, while A1 still in possession of
the car, it got lost due to fortuitous event. The right of C is

a. None, obligation is totally extinguished.

b. Proceed against any of the debtors for the value and damages.
c. Proceed against A1 only, because he is the one is pos- session at the time it was lost.
d. Proceed against A2 or A3 but only P4,000 each.

149. Which of the following is not a conditional obligation?

a. D to give C P1,000 if C passes the examination.

b. D to pay C P1,000 if C has the means.
c. D to give C a horse if C marries X.
d. None of the above.

150. On June 25, 2010, S promised to sell his land to B for P10,000, if B will pass the CPA exams on
June 25, 2012. Which is false?

a. From June 2010 up to June 2012, S remains to be the owner because the condition is not yet
fulfilled.
b. If on June 25, 2012, B passed the examination, after payment and delivery, B becomes the owner
and the effect is retroactive dating back from the time the obligation was constituted, that is, June
25, 2010.
c. If one year after the promise was made or on June 25, 2011, S sold the land to X the sale is not
valid because the land was already sold to B on June 25, 2010.
d. If one year after the promise was made or on June 25, 2011, S sold the land to X, the sale is valid
whether or not B passes the examination on December 25, 2012.

151. I will give you specific car if you will marry X this year (2010). Which of the following statements is
incorrect?

a. If on December 25, X died, without marriage, my obligation is effective because one party is
dead, marriage is impossible to take place.
b. If on December 25, X died, without marriage, my obligation is extinguished because one party is
dead. Marriage is impossible to take place.
c. If the year has ended, no marriage taking place, both parties are alive, just the same my
obligation is extinguished because the time indicated has already elapsed.
d. If you marry X on December 25, my obligation is to give you the car.

152. I will give you a specific car if you will not marry X this year (2010). Which of the following statements
is incorrect?

a. If on December 25, X died and no marriage took place, my obligation becomes effective (not
extinguished) be-
cause the expected event cannot occur anymore.

26
 b. If on December 25 you marry X, my obligation is extinguished because you violated the
condition.
c. If the year has ended, and no marriage took place, both parties are still alive, my obligation
becomes effective (not extinguished) because the time indicated has already elapsed.
d. If on December 25, X entered the convent, the obligation can be demanded immediately because
it is clear that the marriage will not take place anymore.
e. All of the above.

153. In a solidary obligation, D1 and D2 bind themselves to give C1 and C2 P10,000. Which of the
following statements is false?

a. C1 cannot renounce the obligation of D1 and D2 to pay P10,000 because the act is prejudicial to
the other.
b. C1 can renounce the obligation of D1 and D2 to pay P10,000 but C1 must give C2 P5,000.
c. If C1 and C2 will renounce the obligation in favor of D1, the total obligation is extinguished and
D1 is to ask P5,000 from D2 representing the share of the latter.
d. D1 and D2 can pay anyone of the creditors and if accepted the obligation is totally extinguished.

154. D will support C until the end of this year is an obligation

with:

a. A suspensive condition.
b. A resolutory condition.
c. An EX DIE period.
d. An IN DIEM period.

155. Whenever in an obligation a period is designated, it is pre- sumed to have been established for the
benefit of the:

a. Debtor
b. Creditor
c. both the creditor and the debtor
d. none of the above

156. The debtor shall lose every right to make use of the period EXCEPT:

a. When after the obligation has been constituted, he be- comes insolvent, unless he gives a
guaranty or security of the debt.
b. When he does not furnish a guaranty or security to the creditor.
c. When the debtor attempts to abscond.
d. When the debtor violates any undertaking in consideration.

157. No person shall be responsible for events which could not be foreseen, or which, though foreseen,
were inevitable, EXCEPT:

a. When the debtor is guilty of delay.

b. When the nature of the obligation requires the assumption of risk.
c. When the law expressly provides for the debtor's liability even in cases of fortuitous events.

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 d. When the subject matter for the obligation is a generic thing.
e. All of the above.

158. S sold to B a specific car for P20,000 to be paid as follows: P5,000 upon delivery of the car to B, and
the balance at the rate of P500 every three months thereafter. Subsequently, the car got burned in the
possession of B, without his fault, before payment of the balance. Is B obliged to pay the balance?

a. No, because the car was lost without his fault, B's ob- ligation is extinguished.
b. No, because this is an installment sale, until the buyer pays the price of the sale, S remains to be
the owner.
c. Yes, because of the principle "the thing perishes with the owner".
d. Yes, but S must give another car because of the principle "Genus nunquam perit" or Genus never
perishes".

159. An obligation wherein various things are due, but the payment of one of them is sufficient to
extinguish the obligation is called:

a. Simple obligation
b. Alternative obligatio
c. Conjoint obligation
d. Facultative obligation

160. D obliged himself to give C a specifc car if the latter can- not make a circle that is at the same time a
square.
a. The obligation is impossible, therefore, void. b. The obligation is void because the condition is outside
the commerce of man.
c. D cannot be obliged to deliver at all.
d. Answer not given.

161. In a solidary obligation, D obliged himself to pay C1, C2, C3 P6,000 on De. 25. If on the date of
maturity, C1 demanded payment from D but the latter paid C3 the full amount of P6,000, which of the
following statement is true?

a. Obligation is totally extinguished because C3 accepted the payment.

b. No obligation is extinguish.
c. The obligation of D to C2 and C1 are totally extinguished.
d. Only the obligation of D to C3 which is P2,000 is extinguished.

162. Statement No. 1: In alternative obligations, all the objects promise by the debtor to the creditor are
all due.
Statement No. 2: In facultative obligations, there are two objects due but the obligor can deliver one thing
due and the obligation is extinguished.

a. No. 1 is true; No. 2 is false.

b. No. 1 is false; No. 2 is true.
c. Both are true
d. Both are false.

163. Statement No. 1: "I will give you P10,000 if you like". This obligation is subject to a protestative
condition and demandable at once.

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Statement No. 2: "I will give you P10,000 if you cannot make a dead man alive". This is a pure obligation
and demand- able at once.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

164. Statement No. 1: "1 will give you P10,000 if you pass the May 2010 CPA examination". On the first
day of the examination that is May 12, I poisoned you and you failed to take the examinations. The next
day my obligation is extinguished because you cannot pass the examinations anymore.
Statement No. 2: "I will give you P10,000 if I like". In this case, the court may fix the duration of the period
because it depends upon the will of the debtor.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. no. 1 is false; No. 2 is true.

165. In three of the following enumerations, the proper remedy is reformation of the instrument. Which is
the exception?

a. If mistake, fraud, inequitable conduct or accident has prevented the meeting of the minds of the
contracting parties.
b. If the true intention of the contracting parties is not ex- pressed in the instrument purporting to
embody the agreement by reason of mistake, fraud, inequitable conduct or accident.
c. If the mutual mistake of the parties causes the failure of the instrument to disclose their real
agreement.
d. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the
instrument does not show their true intention.

166. A-1 and A-2 are solidary debtors of B-1, B-2 and B-3, joint creditors in the amount of P90,000. How
much can B-3 collect from A-2?

a. B-3 could collect P30,000 from A-2.

b. B-3 could collect P90,000 from A-2 and give P30,000, each to B-1 and B-2.
c. B-e could collect P45,000 from A-2 and give P13,000, each to B-1 and B-2.
d. B-3 could collect P15,000 from A-2 and P13,000 from A-1.

167. A obliges himself to pay X P100,000 in 30 days plus a penalty of P20,000 if A fails to pay the
obligation in due time. A failed to pay the obligation in 30 days. X can demand from A

a. The principal of P100,000 plus P20,000 penalty.

b. The principal of P100,000 plus P20,000 penalty, plus legal interest.
c. The principal of P100,000 plus legal interest.
d. The principal of P100,000 plus P20,000 penalty, plus legal interest, plus damages.

168. In three of the following cases, compensation shall not be proper. Which is the exception?

a. Commodatum
b. Gratuitous support
c. Civil liability arising out of criminal offenses

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 d. Bank deposit

169. Which of the following is an obligation with a period for the benefit of the debtor and the creditor?

a. Payable when "you like".

b. Payable when debtor's means permit him to do so.
c. Payable on or before December 25, 1997.
d. Payable "if I like". e. Any of the above.

170. Proof of pecuniary loss is not necessary for the award of:

a. Moral damages
b. Nominal damages
c. Temperate damages
d. Exemplary damages
e. All of the above

171. Three of the following are requisites of an obligation. Which

is the exception?

a. Prestation
b. Efficient cause
c. Delivery
d. Passive subject

172. Statement No. 1: In an obligation with a penal clause, interest and damage, aside from the penalty,
may be awarded to the creditor if the debtor is guilty of fraud.
Statement No. 2: In an obligation that is impossible of division, the debt can be enforced only by
proceeding against all the debtors. If one of the debtors should be insolvent, the other shall not be liable
for his share.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

173. Statement No. 1: Solutio indebiti may apply to payment by mistake of a prescribed obligation.
Statement No. 2: Dolo causante refers to fraud in the per- formance of an obligation.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true

174. An obligation where only one prestation is due, with no period or condition needed is called:

a. pure or simple obligation

b. conjoint obligation
c. alternative obligation

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 d. none of the above

175. Statement No. 1: In alternative obligations, the right of choice belongs to the creditor unless it has
been expressly granted to the debtor.
Statement No. 2: A solidary creditor cannot assign his right to a co-creditor without the consent of the rest
of the creditors.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is true while statement No. 2 is false.
d. Statement No. 1 is false while statement No. 2 is true.

176. Amazed by the skill of X who can paint portraits using paint brushes inserted in his right armpit, Y
entered unto a contract with the former to have his own portrait done and gave XP50,000 as full payment
therefore. After he has started painting the portrait but before its completion, X was sideswiped by a
speeding car while he was drunk and walking beside the railway causing the doctors to have his right arm
amputated. In this case, what is the remedy of Y?

a. Nothing, as the service became impossible by reason of an act independent of the will of the
debtor.
b. Equivalent performance in terms of damages.
c. Specific performance by compelling X to go on painting Y's portrait.
d. Substitute performance by allowing a third person to
do his portrait with expenses therefor charged to X.

177. Fruits as resulting from spontaneous products of the soil without the intervention of human labor, as
well as animal offspring are:

a. Industrial fruits
b. Civil fruits
c. Natural fruits
d. All of the above fruits

178. Statement No. 1: D obliges himself to give C a specific ring, upon failure, to give C P5,000. This is a
case of facultative obligation.
Statement No. 2: D obliges himself to give C a specific ring. However, if he so desires, D may instead give
C P5,000. This is an example of an obligation with a penal clause. Given these examples, which
statement is correct?

a. Both obligations are valid but both are mislabeled as to their classification as obligations.
b. Both obligations are not valid.
c. Both obligations are valid and are properly labeled as to their classification as obligations.
d. Both statements are invalid and improperly labeled as to their classification as obligations.

179. D is indebted to solidary creditors X, Y and Z for P30,000. Without the knowledge of X and Y, Z
remitted or renounced the obligation of D.

a. The obligation of D is not extinguished.

b. The obligation of D is extinguished to the extend of P20,000.
c. The obligation of D is extinguished to the extent of P10,000.
d. The obligation to pay P30,000 is extinguished, but X and Y may proceed against Z for their share.

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 e. None of the above.

180. In novation, which of the following is incorrect?

a. If the new obligation is void, original obligation shall subsist.

b. In expr omission, the insolvency of the new debtor shall not revive the action of the creditor
against the original debtor.
c. If the original obligation is subject to a suspensive condition, the new obligation is not subject to
the same condition unless stated.
d. If the condition is resolutory, the new is also subject to a resolutory condition, unless otherwise
stated.

181. Statement No. 1: The debtor of a thing cannot compel the creditor to receive a different one,
although the latter may be of the same value or more valuable than that which is due.

Statement No. 2: In dation of payment, ownership of the thing delivered is transferred to the creditor;
while in cession, it merely authorizes the creditor to convert the property into cash and out of the
proceeds to extinguish the obligation partially.

a. Both are true.

b. Both are false.
c. No. 1 is true, No. 2 is false.
d. No. 1 is false, No. 2 is true.

182. A promissory note signed by D and dated March 15, 2010 is worded as follows: "I promise to pay C
the sum of Fifty Thousand Pesos (50,000) provided that if she should fail in the October 2010 CPA
Examination, she shall return to me said amount". The above note gives rise to an obligation with

a. Suspensive condition.
b. Casual condition.
c. Resolutory condition.
d. None of the above.

183. "I will give you this book provided that if I like to have it back, you will return the same to me"

a. The obligation is void, because the fulfillment depends upon the will of the debtor.
b. The obligation is void, because the fulfillment depends upon the will of the creditor.
c. The obligation is valid, because the condition merely causes the loss of rights already acquired.
d. Combination of A and B.

184. It refers to a joint obligation;

a. One in which each debtor is liable for the entire obligation, and each creditor is entitled to demand
the whole obligation.
b. One in which either one of the parties is indispensable and the other is not necessary.
c. One in which the obligation of one is a resolutory condition of the obligation of the other, the non-
fulfillment of which entitles the other party to rescind the contract.
d. One in which each of the debtors is liable only for a proportionate part of the debt and each
creditor is entitled only for a proportionate part of the credit.

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185. An obligation where each of the debtors is liable only for a proportionate part of the debt, and each
creditor is entitled only to a proportionate part of the credit is called:

a. Conjoint obligation
b. Joint obligation
c. Solidary obligation
d. Divisible obligation

186. An obligation where each of the debtors is liable for the entire obligation, and each creditor is entitled
to demand payment of the whole obligation is called:

a. Conjoint obligation
b. Joint obligation
c. Solidary obligation
d. Indivisible obligation

187. Which of the following statements is true?

a. A condition always refers to the future.

b. The debtor loses the period if he does give any security to the creditor.
c. The condition not to do an impossible thing does not render the obligation void.
d. The alternative obligations the right to select which of the prestation shall be delivered belongs to
the creditor, unless expressly given to the debtor.

188. Contract with false cause is:

a. Voidable
b. Void
c. Unenforceable
d. All of the above

189. A thing is considered lost when it:

a. Perishes
b. Goes out of commerce
c. Stolen or robbed
d. All of the above

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

a. To the extent of the net proceeds of the thing released.

b. To the extent allowed by the creditor.
c. Only to the extent of the net proceeds of the thing assigned.
d. Totally extinguished under dation in payment.

191. Acceptance of a commercial document is equivalent to payment when

a. The check has been cashed.

b. The check became valueless due to the creditor’s fault.
c. Creditor is in estoppel.
d. All of the above.

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192. A is obliged to give B his only car on September 1, 2010. On the said date, A did not deliver. On
September 2, 2010, an earthquake completely destroyed the car. Is A still liable?

a. No. Considering that no demand to deliver was made by B and the specific thing was lost due to
fortuitous event, the obligation is extinguished.
b. No. The obligation is extinguished, even if the debtor is already in default because the debtor can
plead impossibility of performance.
c. Yes. A is already in legal delay, thus the obligation to deliver the lost specific thing is converted
into monetary claim for damages.
d. Yes. The creditor can instead demand for a substitute of equivalent value from the debtor.

193. B and C promised to deliver a particular car valued at P100,000 to M on or before September 15,
2010, M demanded delivery from B and C. B was willing to deliver but C refused to deliver. In the case at
bar

a. An action for specific performance will lie against both B and C.

b. Both B and C shall be liable for P50,000 each with damages.
c. B shall be liable for P50,000 without damages and C shall be liable for P50,000 and damages.
d. None of the above.

194. A, B, and C executed a promissory note worded as follows: “We promise to pay X, Y, and Z the sum
of P90,000. (Sgd.) A, B, and C”.

a. A is obliged to pay X, Y, and Z P90,000.

b. A is obliged to pay X P30,000.
c. A is obliged to pay X P60,000.
d. A is obliged to pay X P10,000.
e. None of the above.

195. If in the situation given in No. 194, there is a diamond ring pledged by the debtors, subsequently
returned by the creditors:

a. The total principal obligation is extinguished.

b. Only P30,000 of the obligation is extinguished.
c. Only P60,000 of the obligation is extinguished.
d. Principal obligation is not extinguished at all.

196. A in indebted to B for P20,000. X is the guarantor of A. B is also indebted to A for P8,000. How much
will X be liable as guarantor if B sues A, and cannot pay?

a. P12,000
b. P20,000
c. P8,000
d. X has no liability

197. Statement No. 1: Payment made to an incapacitated person is good only up to the extent that he
was benefited or up to the amount that he was able to keep.

Statement No. 2: In obligations arising from quasi-contracts, consent of the parties is not necessary.

a. Statement No. 1 is false while Statement No. 2 is true.

b. Statement No. 1 is true while Statement No. 2 is false.
c. Both statements are true.
d. Both statements are false.

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198. Statement No. 1: In novation by expromission, there can be a revival of the obligation if the new
debtor turns out to be insolvent, and such insolvency is of public knowledge.

Statement No. 2: A debtor paying a natural obligation to and in favor of a creditor by mistake can still
recover the same from the latter.

a. Both statements are true.

b. Both statements are false.
c. Statement No. 1 is false while Statement No. 2 is true.
d. Statement No. 1 is true while Statement No. 2 is false.

199. Statement No. 1: D obliged to give a specific car to C on Dec. 20, 2003. If on the date stated, D did
not comply with his obligation, the next day he is considered in default without the need of a demand.

Statement No. 2: S sold to B a specific car for P10,000. Both partis promise to comply with their
obligations the day after tomorrow. If on the date stated, S delivers the car to B, but B is not ready to
comply with his obligation, from thereon he is considered in default without the need of a demand.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

200. Statement No. 1: “I will give you P10,000 if you will not marry X this year (2010).” If on Dec. 25,
2010, X entered the convent, the next day, Dec. 26, my obligation is extinguished.

Statement No. 2: “I will give you P10,000 when my means permit me to do so”. This is a conditional
obligation for the benefit of the debtor.

a. Both are true.

b. Both are false.
c. No. 1 is true; No. 2 is false.
d. No. 1 is false; No. 2 is true.

201. D1, D2, and D3, obliged themselves jointly to pay C P15,000. To secure the obligation, D1 pledged
his ring, D2 his TV. D3, his refrigerator. On the date of maturity, D1 paid C P10,000. Which of the following
statements is true?

a. D1 can redeem object 1 because the obligation is joint.

b. D1 can redeem object 1 and object 2 because they are proportionate to the amount paid.
c. D1 can redeem any of the object pledged.
d. D1 cannot redeem any of the thing pledged because the indivisibility of the contract of pledge is
not affected by the fact that the obligation is not solidary.

202. D owes C P10,000 with G as guarantor. Third person X, pays the obligation without the consent of
the debtor. X asks for reimbursement from D but D is insolvent.

a. X is by right subrogated to the rights of C.

b. X can compel C to return the payment.
c. X cannot compel C to subrogate him in his rights.
d. The obligation of D to C is not extinguished.

203. A obtained a loan from B to P1,500 with interest at 14% per annum, the payment of which was
secured by guarantor C. After maturity of the loan, D without the knowledge of A paid B, P1,400 and
thereupon B signed a receipt and gave it to D with this tenor: “Received from D in full payment of A’s
obligation in my favor”. (Sgd.) B.

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 a. D. can recover from A P1,500 because the whole obligation of A to B has been extinguished.
b. D can recover from A P 10500 because the balance of p100 is considered extinguished by partial
remission.
c. D can recover from A P1,400 because that was presumably the extent to which was benefited.
d. D cannot recover from A because he paid without the knowledge of A

204. Which of the following is not legal subrogation?

a. When a creditor pays another who is preferred

b. When a third person, not interested in obligation, pays with the approval of the debtor.
c. When a third person interested in the obligation pays even without the approval of the debtor
d. None of them.

205. P authorized A, 16 years old, to sell his car to B. A sold the car to B for P100,000. One week after,
because of the floating rate of peso, prices of car went up. P now wanted to disavow the sale, claiming
that A, his agent was a minor and therefore the contract is voidable and no liability is attached in the
contract.

a. Both A and B are jointly liable to B

b. Only A is liable because he executed the agency knowing for himself that he is a minor,
c. P and A are solidarily liabile to B.
d. None of the Above

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