Quizzers Obli

QUIZZERS
1. The juridical necessity to give, to do or not to do refers to:

a. social obligation b. civil obligation c. moral obligation d. natural obligation
2. Which of the following is not an element of a civil obligation?
a. Active subject b. Passive subject c. Prestation d. sufficient cause
3. The active subject of an obligation is also known as:
a. debtor b. obligor c. oblige d. Subject matter
4. The passive subject of an obligation is also known as:
a. creditor b. oblige c. object d. debtor
5. The prestation of an obligation is also known as:
a. subject matter b. debtor c. creditor d. efficient cause
6. The efficient cause of an obligation is also known as:
a. active subject b. passive subject c. subject matter d. legal tie
7. A civil obligation differs from a natural obligation in that is a civil obligation:
a. The obligation is enforceable by court action.
b. The obligation exists in equity and moral justice.
c. If payment is voluntarily made although it was no longer required, the same can no longer be recovered.
d. There is no juridical necessity to perform it.
8. The following are sources of obligation, except:
a. Quasi-delicts
b. Quasi-contracts
c. Act and omissions punishable by law
d. Quasi-tradition
9. The obligation of a husband and wife to love and support each other is an obligation arising from:
a. Contract
b. Law
c. Quasi-contract
d. Agreement
10. F and M are the parents of S, a government employee who is married to D. F is an employee of a private
firm, while M is a housewife. While S was on an out-of-town assignment, D was brought to the hospital
for medical treatment by F and M, her parents-in-law. The hospital wants to collect now from F and M for
the medical expenses.
a. Only F is liable because he is the one employed.
b. Both F and M are liable because it was they who brought D to the hospital.
c. Only S, the husband of D, is liable as he is the one obliged by law to support his wife.
d. The three of them are liable because they belong to the same family and are obligated by law to
support
11. The following are obligations imposed by law, except:
a. Obligation to support one’s spouse and children.
b. Obligation to pay license fees before one can engage is business.
c. Obligation to pay tuition fees to a school where one is enrolled.
d. Obligation to take and pass the CPA Licensure Examination before one can practice public
accounting.
12. The Teodoro lease an apartment owned by Orlando for two years. He pays a monthly rental amounting to
P10,000.00. The obligation of Teodoro to pay the rental of the apartment is an obligation arising from:
a. Law
b. Contract
c. Quasi-contract
d. Quasi-delict
13. The prestation in the preceding number is:
a. The apartment owned by Orlando.
b. The payment of the monthly rental by Teodoro
c. Orlando, the owner of the premises.
d. Teodoro, the tenant.
14. A juridical relation arising from certain lawful, voluntary and unilateral acts, and which has for its purpose
the payment of indemnity to the end that no one shall be unjustly enriched at the expense of another
a. Quasi-delict b. Quasi-contract c. Quasi-tradition d. Quasi-relation
15. The return of what has been paid by mistake is known as:
a. Negotiorumgestio b. solutioindebiti c. quasi-delict d. culpa aquiliana
16. B went to S Grocery Store to buy some goods. He handed to the cashier 5 pieces of P1,000 bill for the
goods worth P4,700.00 that he purchased. Shortly upon arriving home, he noticed that the cashier gave
him a change of P600.00 consisting of 3 pieces of P200.00 bill, or an excess change of P300.00. The
receipt indicated that only P4,700.00 worth of goods were purchased.
a. B is obliged to return the excess of P300.00 because it is a case of payment that is not due.
b. B is not obliged to return the excess because it was not his fault that he received an excess of P300.00
c. B is not obliged to return the excess of P300.00 since the cashier will have no way of knowing that an
excess amount was given to B.
d. B is not obliged to return the excess because the receipt did not indicate that there was an excess
payment.
17. The voluntary administration of the property, business or affairs of another without his consent is known
as:
a. Solutioindebiti b. Negotiorumgestio c. Agency d. Unauthorized
contract
18. D and C are the owners of neighboring stalls in Divisoria. D got sick and had no one to tend to his store
which contained some perishable items. When C noticed that D had not been around already for almost a
week, C had the perishable items owned by D placed in a cold storage to preserve them. C incurred
P1,000.00 for the purpose.
a. D must reimburse P1,000.00 to C since he was benefited by the act of C.
b. D has no obligation to reimburse C since he did not authorize C to place the perishable items in a cold
storage.
c. D must reimburse P1,000.00 to C because C had an authority to do so they being neighbors.
d. D need not reimburse P1,000.00 to C because no one should intrude into the affairs or business of
another.
19. Negotiorumgestio and solution indebiti are examples of:
a. Quasi-delict b. Quasi-contract c. Quasi-tradition d. Quasi-relation
20. These statements are presented to you:
I. A quasi-contract is an implied contract.
II. A contract is the result of the conformity of wills of the parties
In your evaluation of the foregoing statements:
a. Both statements are true.
b. Both statements are false.
c. Only statements I is true.
d. Only statements II is true.
21. D stole the carabao of C. D was arrested, tried and convicted. He was ordered by the court to return the
carabao. D’s obligation to return the carabao is an obligation arising from:
a. Quasi-contract b. Quasi-delict c. Crime d. Law
22. Refer to the preceding number. Before D could return the carabao, it fell into a ravine without his fault
and died. Which of the following statements is incorrect?
a. D’s obligation to C is extinguished because the loss is due to fortuitous event.
b. D must still pay for the value of the carabao.
c. D must still pay for consequential damages even if the carabao was not lost.
d. D must be imposed a prison term or other penalty even if the carabao was not lost.
23. D and his playmates were playing baseball on a vacant lot. When D took the bat, he struck so hard that
the ball flew and broke the glass window of N, his neighbor. In this case, D shall be liable to N for damages
arising from:
a. Quasi-delict
b. Quasi-contract
c. Crime
d. D is not liable at all, because the damage to the window was accidental.
24. D, 30 years old, asked B, a 10-years old boy, to climb a coconut tree with a promise to give him P5.00 for
every coconut picked. B climbed the tree but he fell and died. D is obliged to pay damages to the heirs of
B on the basis of:
a. Quasi-delict
b. Quasi-contract
c. Acts and omissions punished by law.
d. D is not liable because it was not through his negligence that B fell to his death.
25. It is a thing that is particularly designated or physically segregated from all others of the same class.
a. Generic thing
b. Indeterminate thing
c. Determinate thing
d. Special thing
26. Which of the following is not a determine thing?
a. My dog named “Spotty.”
b. Lancer car with engine no. A23867, body no. B98675, and plate no. CBV-785.
c. The wristwatch I am wearing.
d. Twenty sacks of rice.
27. In an obligation to give a determine thing, the debtor, in addition to the obligation to deliver the thing
agreed upon, has also the obligation to:
a. Care for the thing before its delivery.
b. Deliver its accessions and accessories.
c. Deliver its fruits.
d. All of the above.
28. A person obliged to give a determine thing is also obliged to take care of the thing with:
a. The good diligence of a father of a family.
b. The diligence of a father of a good family.
c. The diligence of a good father of a family.
d. Extraordinary diligence.
29. They refer to the spontaneous products of the soil and the young and other products of animals.
a. Natural fruits
b. Industrial fruits
c. Civil fruits
d. Legal fruits
30. The rice, corn and other products of land that come into existence through human labor are example of:
a. Natural fruits
b. Civil fruits
c. Legal fruits
d. Industrial fruits
31. They refer to the products of a juridical relation such as the rents of buildings, the price of leases of lands
and other property, and the amount of perpetual or life annuities or other similar income.
a. Civil fruits
b. Natural fruits
c. Legal fruits
d. Industrial fruits
32. The obligation to deliver arises:
a. Upon perfection, if the obligation is one without a suspensive term or suspensive condition.
b. Upon the happening of the condition, if the obligation is subject to a suspensive condition.
c. Upon the arrival of the term, if the obligation is subject to a suspensive period.
Item 33 to 37 are based on the following data:

On August 1, 2009, D promised to give his agricultural lot to C if C passes the Bar Examination. C took the
examination on September 20, 2009. The result of the examination was released on April 18, 2010 and C
passed it.
33. The obligation of D to give his agricultural lot to C arose:

a. On August 1, 2009
b. On Sept. 20, 2009
c. On April 18, 2010
d. At any time after April 18, 2010 when D had taken his oath as a new lawyer.
34. C shall be entitled to the crops (fruits) that had grown on the agricultural lot starting from:
a. August 1, 2009
b. Sept. 20, 2009
c. April 18, 2010
d. The time when C has taken his oath as a new lawyer.
35. The right of C to demand the delivery of the agricultural lot and the crops from the time the obligation to
deliver the lot arose is known as:
a. Real right
b. Personal right
c. Civil rights
d. Natural right
36. Assume that D actually delivered the agricultural lot and the crops to C on May 1, 2010. On such date,
what right was acquired by C over the agricultural lot and the crops?
a. Real right
b. Personal right
c. Civil rights
d. Industrial right
37. Assume that D actually delivered the agricultural lot and the crops on May 1, 2010 to X who bought them
in good faith. Which of the following statements is incorrect?
a. C can go after D for damages.
b. X acquired ownership of the agricultural lot and crops.
c. C shall have a right of action for damages against X.
d. No real right is acquired by C.
38. D is obliged to deliver a Nokia cell phone with serial number AV2345 to C on November 10, 2010. D did
not deliver the said cell phone on due date despite of demand made by C. Based on the foregoing, which
of the following statements is incorrect?
a. D shall be responsible for any fortuitous event until he has effected the delivery of the cell phone to C
b. C may compel D deliver the Nokia cell phone with serial number AV2345.
c. C may demand the payment of damages from D.
d. C may obtain another Nokia cell phone from other suppliers at D’s expense.
39. D is obliged to deliver 10 sacks of rice to C on October 1, 2010. D failed to deliver 10 sacks of rice to C on
due date. Based on the foregoing, which of the following statements is incorrect?
a. C may demand that D obtain 10 sacks of rice deliver them to him.
b. C may get 10 sacks of rice from another person at D’s expense.
d. D may just insist to pay the monetary value of 10 sacks of rice.
I. Accessions include everything which is produced by a thing or which incorporated or attached thereto,
either naturally or artificially.
II. Accessories are those that are attached to or include in another thing of more importance to the add
to the utility, ornamentation, preservation or completion of the latter.
41. Which of the following is not an accessory?
a. The bracelet of a wristwatch.
b. They keys to a house.
c. The building constructed on a lot.
d. The early Warning Device of a car.
42. These statements concerning the accessions and accessories of a determinate thing are presented to you:
I. The debtor has to deliver the accessions and accessories even if they have not been mentioned.
II. The debtor must deliver the accessions and accessories only if they have been mentioned.
III. The debtor and the creditor may validly stipulate that the accessions and accessories will be excluded
from the obligation to deliver the thing.
a. Statements I and II are true.
b. Statements II and III are true.
c. Statements I and III are true.
d. All statements are true.
43. D is obliged to paint the house of C. D failed to paint the house. As a result, one of the following
statements is incorrect.
a. C may compel D to paint the house.
b. C himself may paint the house at D’s expense.
c. C may ask that the house be painted by another person at D’s expense.
d. C may demand the payment of damages from C.
44. D agreed to make a built-in cabinet for C for P5,000.00. The parties stipulated that the cabinet would be 6
feet tall and 4 feet wide, fine-finished and painted white. D made the cabinet following the
measurements agreed upon, but it was not properly aligned, some nails were protruding, the surface was
rough, and the paint was unevenly applied. Based on the foregoing, which of the following statements is
incorrect?
a. C may have the cabinet be dismantled by another person and have it reconstructed at D’s expense.
b. C himself may dismantle and reconstruct the cabinet at D’s expense.
d. C may compel D to reconstruct the cabinet.
45. T leased a commercial building owned by O. Under the lease contract “(T) he Lessee is prohibited from
installing electronically-operated signages without the written consent of the Lessor”. T installed a neon
signage at the front of the building without the written consent of O. Based on the foregoing, which of the
following statements is incorrect?
a. O may ask T to remove or take down the neon signage.
b. O may demand the payment of damages from T.
c. O cannot avail himself of either (a) or (b) because the stipulation prohibiting the installation of the
signage is void for being in restraint of trade.
d. O himself may remove or take down the signage at T’s expense.
46. Demand is not required in order for delay to exist in the following cases, except when:
a. Time was a controlling motive for the establishment of the contract.
b. Demand is useless.
c. The law or the obligation expressly provides that demand is not required.
d. The obligation is silent as to whether demand is required or not for the performance of the obligation.
47. These statements concerning delay are presented to you:
I. There is no delay in obligations not to do.
II. As a rule, the debtor will be in default if he does not perform his obligation on due date.
c. Only statement I is true.
d. Only statement II is true.
48. The delay on the part of the debtor in an obligation to give is known as:
a. Mora solvendi ex re.
b. Mora solvendi ex persona.
c. Mora accipiendi.
d. Compensation morae.
49. D is obliged to deliver a specific cell phone to C at the latter’s residence on March 1, 2010. On March 1,
2010, C waited at his residence for the delivery of the cell phone was destroyed in a fire that razed the
store of D.
a. D will be liable for damages to C.
b. D was already in default at the time of the loss of the cell phone.
c. D’s obligation is extinguished.
d. No demand was required to be made by C upon D for the latter to be in default because a date was
provided for the performance of D’s obligation.
50. P called ABC Travel Agency (ABC) to book him for a flight to Davao City on April 30, 2010 at 5:00 p.m. P
informed ABC that he was the scheduled guest speaker at the Accounting Convention on May 1, 2010 at
9:00 a.m. and that he had to be in Davao City in the evening of April 30 in time for the convention. Per
agreement, ABC would deliver the plane ticket at the Manila Domestic Airport at 3:00 p.m. of April 30, at
which time P would pay the cost of the plane ticket as has been their usual arrangement since P was a
regular customer of ABC. On April 30, P waited at the airport at the time agreed upon but no
representative of ABC came to deliver the plane ticket. As a result, P missed his flight. P now sued ABC for
damages, but the latter maintained that it should not be liable because P never made any demand for the
delivery of the plane ticket.
a. ABC is correct; it is not liable because P should have made a demand for the delivery of the ticket at
the time agreed upon.
b. ABC is not correct; it was in default although no demand was made, and thus will be liable for
damages.
c. ABC is not liable for damages; P should have inquired whether there were other available flight to
Davao City at that time.
d. ABC is not liable for damages since P did not pay for the plane fare in advance.
51. These statements concerning reciprocal obligations are presented to you:
I. Neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner
with what is incumbent upon him.
II. From the moment one of the parties fulfills his obligations, delay by the other begins.
52. On October 10, 2010, S sold his typewriter to B for P6,000.00. The parties agreed that the delivery of the
typewriter and the payment of the price would be made the following day. Based on the foregoing, which
of the following statements is incorrect?
a. If on the following day, S delivers the typewriter, B will be in delay unless he pays the price.
b. If on the following day, B pays S P6,000.00, S will be in delay unless he delivers the typrewriter.
c. On the following day, neither S nor B will be in delay if the other does not pay the price or deliver the
typewriter, as the case may be.
d. On the following day, S and B will both incur in delay if they do not perform their respective
obligations since a date has been set for their compliance.
53. A term that refers not only to the harm done but also to the sum of money that may be recovered.
a. Damages b. Injury c. Tortuous act d. Legal wrong
54. They refer to the pecuniary loss (such as loss in business or profession) that may be recovered and include
the value of the loss suffered and profits not realized.
a. Actual damages b. Nominal damages c. Liquidated damages d. Moderate damages
55. They include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation and similar injury.
a. Compensatory damages b. Corrective damages c. Exemplary damages d. Moral damages
56. The damages agreed upon by the parties to be paid in case of breach.
a. Liquidation damages
b. Actual damages
c. Moral damages
d. Temperate damages
57. As a rule, which kind of damages require proof so that they may be adjudicated?
a. Moral damages b. Nominal damages c. Temperate damages d. Actual damages
58. The following are certain kinds of fraud:
I. Causal fraud or dolocausante
II. Incidental fraud or dolo incidente
III. Fraud in performance
Which of the above kinds of fraud will not affect the validity of the contract but will entitle the injured
party to recover damages?
a. I and II b. II and III c. I and III d. I, II and III
59. D is obliged to deliver 5 sacks of “Milagrosa” rice to C after two weeks. On due date, D intentionally
delivered 5 sacks of rice of a lower class. The obligation of D is:
a. Void b. Rescissible c. Voidable
d. Still valid and is not affected by the fraud in performance.
60. Refers to the preceding number. Assuming that upon learning of the fraud committed by D, C threatened
to sue him for damages. D asked forgiveness and pleaded with C not to sue him. Moved by D’s plea and
repentance, C relented. The waiver made by C not to sue D for damages on account of the fraud
committed by the latter is:
a. Valid b. Voidable c. Rescissible d. Void
61. D is obliged to deliver 20 bottles of White Castle whisky to C. The parties agreed that should D commit
fraud in one way or another in the performance of his obligation, C would not sue him for damages. On
due date, D intentionally delivered to C 20 bottles of adulterated whisky. Upon learning of the fraud, C
threatened to sue for damages.
a. C cannot sue D for damages on account of the fraud because he waived his right thereto.
b. C can still sue D for damages because the waiver made by C is void.
c. C can file an action for the annulment of the contract on the ground of fraud.
d. C can file an action for the declaration of the nullity of the contract.
62. The defense of a good father of a family in the selection and supervision of employees is not available to
the employers in:
a. Contractual negligence and civil negligence.
b. Contractual negligence and criminal negligence.
c. Civil negligence and criminal negligence.
d. All the three cases of negligence.
63. When the relation of employer and employee exists, the employer is liable for the acts of the employee if
committed in the course of employment. This is:
a. The master-servant rule.
b. The principle of command responsibility.
c. The rule of responde at superior.
Item 64 and 65 are based on the following statements:
I. There is deliberate intention to cause damage to another.
II. There is no deliberate intention to cause damage to another.
III. Liability for damages may be mitigated by the court according to the circumstances.
IV. Liability for damages cannot be mitigated by the court.
64. The statements applicable to fraud are:
a. I and III b. II and IV c. I and IV d. II and III
65. The statements that are applicable to negligence are:
a. I and III b. II and IV c. I and IV d. II and III
66. There shall be liability even in case of fortuitous event in the following cases, except:
a. When the law expressly provides that there shall be liability even in case of fortuitous event.
b. When the nature of the obligation requires the assumption of risks.
c. When the parties stipulated that there shall be liability even in case of fortuitous event.
d. When the obligation is silent as to whether or not there shall be liability in case of fortuitous event.
I. The receipt of the principal without reservation with respect to the interest shall not give rise to the
presumption that the interest has been paid.
II. The receipt of a later installment without reservation with respect to prior installments shall give rise
to the presumption that such prior installments have been paid.
68. Aside from exacting payment of the obligation, the creditor is entitled to which of the following remedies?
a. Pursue the properties in the possession of the debtor except those exempt from execution.
b. Exercise all the rights and bring all the actions of the debtor, excepts those that are inherent in his
person.
c. Impugn all the acts which the debtor may have done to defraud his creditors.
d. All of the foregoing.
69. D borrowed P100,000.00 from C. The debt, which bears interest at 10% per annum and is payable at the
end of one year, is evidenced by a promissory note which D executed and delivered to C. Two months
before due date, C died. He survived by S, his only son and heir to whom the executor of C’s estate
delivered the promissory note.
a. The credit right is transmitted to S; hence, S can collect form D.
b. The credit right is not transmitted to S since it is purely personal; hence, S cannot collect from D.
c. The law prohibits the transmission of the credit right, hence, S cannot collect from D.
d. The credit right is not transmitted to S because there was no stipulation to that effect; hence, S cannot
collect from D.
70. Mr. X died recently. His executor presented to you for evaluation the following documents left by Mr. X:
I. A stock certificate indicating that Mr. X was the owner of 10,000 shares of stocks of San Pedro
Corporation.
II. Articles of partnership of Great Company showing Mr. X as a general partner.
III. Agreement engaging the services of Mr. X as consultant of Marblex Mining Corporation.
The rights that will not be transmitted to the heirs of X are those that arise from:
a. Documents I and II.
b. Documents II and III.
c. Documents I and III.
d. None of the foregoing.
71. A pure obligation is an obligation that is:
a. Immediately demandable.
b. Not subject to any condition.
c. All of the above.
72. XYZ CPA Review School (XYZ) stated in the pamphlets it distributed to its reviewers that it would award
P150,000.00 to any reviewee who places first in the October 2010 CPA Board Examination. The condition
imposed upon the obligation is:
a. A suspensive condition
b. A resolutory condition
c. A condition subsequent
d. An impending condition.
73. D obliged himself to allow the use of his car by C until C finishes his course in law. The condition imposed
upon the obligation is:
a. Suspensive condition b. Condition precedent
c. Condition antecedent d. Resolutory condition
74. A condition that depends upon the sole will of one of the contracting parties is known as:
a. Potestative condition.
b. Casual condition
c. Mixed condition
d. Specific condition
75. Which of the following combinations of conditions will render an obligation void?
a. Suspensive-potestative (creditor)
b. Suspensive-potestative (debtor)
c. Resolutory-potestative (creditor)
d. Resolutory-potestative (debtor)
76. One of the following obligations is void. Which is it?
a. D to give C P10,000.00 if D goes to Baguio.
b. D to give C P10,000.00 if C goes to Baguio.
c. D to give C P1,000.00 a month until D returns from Baguio.
d. D to give C P10,000.00 if C does not fly to the moon.
77. Which of the following is not an obligation with a period?
a. “I will pay you little by little.”
b. “I will pay you when I have the means.”
c. “I will pay you as soon as possible.”
d. “I will pay when my loan is approved by the bank.”
78. One of the following obligations is not demandable at once. Which is it?
a. Obligation with the resolutory condition.
b. Obligation with a resolutory period.
c. Obligation with a condition not to do an impossible thing.
d. Obligation with an ex die period.
79. D is obliged to give C P5,000.00 if C will photocopy a textbook written by X without the permission of X
and the publisher. The book is out of stock and D needs the book immediately for his review course. C is
able to photocopy the book and gives it to D in bookbound from.
a. C may now demand the payment of P5,000.00 from D because the suspensive condition has been
fulfilled.
b. C cannot demand the payment of P5,000.00 from D even if he gives a photocopy of the textbook to
D.
c. C may demand the payment of P5,000.00 from D because the textbook is a necessity on the part of D.
d. C may demand the payment of P5,000.00 from D because C was able to comply with his obligation
under his contract with D.
80. D agreed to give C P10,000.00 if C would plant marijuana on one-half of the lot of D and tobacco on the
other half. C was able to plant both marijuana and tobacco.
a. C may demand the payment of P10,000.00 from D because both condition have been fulfilled by C.
b. C may demand the payment of P5,000.00 for planting tobacco, which is legal part of the obligation.
c. C cannot demand the payment of P10,000.00 from D because the entire obligation is void.
d. C may demand the payment of P10,000.00 from D because D has to comply with his part of the
contract.
81. The condition that some event happen at a determinate time is referred to as:
a. Positive condition.
b. Negative condition.
c. Impossible condition.
d. Condition with period.
82. The condition referred to in the preceding number.
a. Shall extinguish the obligation as soon as the time expires without the event taking place.
b. Shall extinguish the obligation if there is no more doubt that the event will not take place.
c. Shall render the obligation effective if the event takes place within the period that it should happen.
d. Produces all of the foregoing effects depending upon the circumstances of the case.
83. D is obliged to give C a house and lot if C will marry X within one year. Which of the following statements
is incorrect?
a. D’s obligation is extinguished if the one-year period expires without C having married X.
b. D’s obligation is extinguished if X dies before the one-year period expires without C having married X.
c. D’s obligation is demandable if C marries X within the one-year period.
d. D’s obligation is demandable if C marries X after the expiration of the one-year period.
84. The condition that some event will not happen at a determinate time is referred to as:
a. Positive condition
b. Negative condition
c. Impossible condition
d. Condition with period
85. The condition referred to in the preceding number.
a. Shall render the obligation effective as soon as the time expires without the event taking place.
b. Shall render the obligation effective if there is no more doubt that the event will not take place.
c. Shall extinguish the obligation if the event takes place within the period that it should happen.
d. Produces all of the foregoing effects depending on the circumstances of the foregoing effects
depending on the circumstances of the case.
86. D is obliged to give C a house and lot if C will not marry X within one year. Which of the following
statements is incorrect?
a. D’s obligation becomes demandable if the one-year period expires without C having married X.
b. D’s obligation becomes demandable if X dies before the one-year period expires without C having
married X.
c. D’s obligation is extinguished if C marries X within the one-year period.
d. D’s obligation is demandable if C marries X within the one-year period.
I. The condition shall be deemed fulfilled if the debtor voluntarily prevents its fulfillment.
II. The condition not to do an impossible thing shall be deemed as not having been agreed upon.
88. On November 12, 2009, D obliged himself to give C an agricultural lot if C passes the May 22 to 28, 2010
CPA Board Examination. The result of the CPA Board Examination was released on May 30, 2010 and C
passed it. Based on the foregoing data, which of the following statements is incorrect?
a. C shall be entitled to the agricultural lot beginning on November 12, 2009.
b. The fruits on the agricultural lot from November 12, 2009 up to May 29, 2010 shall pertain to D.
c. The fruits on the agricultural lot starting from May 30,2010 shall pertain to C.
d. C shall be entitled to the agricultural lot beginning on May 30, 2010.
89. These statements concerning suspensive condition are presented to you:
I. The creditor may bring the appropriate actions to protect and preserve his right only after the
fulfillment of the condition.
II. The debtor may recover what he has paid if he believed by mistake that the condition has been
fulfilled.
90. D agreed to give C a specific tractor if C would complete his course in Agriculture. C completed his course
in Agriculture but D earlier had the tractor overhauled thereby improving its efficiency.
a. The improvement in the tractor shall inure to the benefit of C without any right on the part of D to
demand reimbursement.
b. D and C must equally share in the cost of improvement.
c. C should reimburse D for the cost of the improvement.
d. D may withhold delivery of the tractor until he and C arrive at an agreement on how the cost of
improvement shall be divided between them.
91. In an obligation to give a determinate thing which is subject to a suspensive condition where the thing
deteriorates without the fault of the debtor before the fulfillment of the condition:
a. The creditor may demand the delivery of the thing but the impairment shall be borne by him.
b. The creditor may demand the delivery of the thing but the cost of repair shall be shouldered equally
between him and the debtor.
c. The creditor may demand the delivery of the thing but the cost of repair shall be borne by the debtor.
d. The creditor may ask for the cancellation of the obligation, but he shall have the right to ask for the
value of the thing before tis deterioration.
92. D allowed the use of his violin by C until C completes his course in Music. Which of the following
statements is incorrect?
a. D’s obligation is demandable at once.
b. C must return the violin upon his completion of his course in Music.
c. C must pay damages to D even if the violin deteriorates without his (C’s) fault during the pendency of
the condition.
d. Any improvement on the violin by its nature or by reason of time before C completes his course in
Music shall inure to the benefit of D.
93. The following statements concerning reciprocal obligations are presented to you:
I. The power to rescind is implied in case one of the obligators does not comply with what is incumbent
upon him.
II. The injured party may choose fulfillment with a right to damages, instead of rescinding the obligation.
94. An obligation whose demandability or extinguishment is subjected to the expiration of a term which must
necessarily come.
a. Obligation with a period
b. Obligation with suspensive condition
c. Obligation with a resolutory condition
d. Alternative obligation
95. A period is different from a condition in that a period:
a. May refer to a past event unknown to the parties.
b. May or may not happen.
c. Merely fixes the time when the obligation will arise or cease.
d. Shall annul the obligation if it depends upon the sole will of the debtor and it is suspensive.
96. The period established in an obligation is presumed to be for the benefit of:
a. The debtor
b. The creditor
c. Both the debtor and creditor
d. Neither, because it must be clearly established by stipulation
97. Which of the following is not an obligation with a period?
a. D to give C P10,000.00 when he can afford.
b. D to give C P10,000.00 when X dies.
c. D to give C P10,000.00 when C, who is university scholar, graduates from college in March 2011.
d. D to give C P10,000.00 on Christmas day next year.
98. On May 1, 2009, D borrowed P100,000.00 from C. The loan is payable on or before April 30, 2010 and
bears interest at 12% per annum. Which of the following statements is incorrect?
a. D may pay on April 30, 2010.
b. D may pay before April 30, 2010.
c. C may demand payment before April 30, 2010.
d. C may demand payment on April 30, 2010.
I. 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 period.
II. If the duration of the period depends upon the will of the debtor, the court cannot fix the period,
because its being potestative on the part of the debtor renders the obligation void.
c. Statement I is true; statements II is false.
d. Statements I is false; statements II is true
100. D is obliged to construct a house for C at the contract price of P2,000.000.00. No due or period was
specified for the performance of the obligation in their written agreement.
a. D’s obligation is demandable at once.
b. C has to seek the aid for the court for fix the period for the performance of the obligation.
c. D’s obligation is void because the period is essential for the validity of the obligation.
d. D’s obligation is not demandable until the full payment of the contract price which is deemed a
suspensive condition.
101. Which of the following is an obligation with a suspensive period (ex die)?
a. D to give C P5,000.00 on Valentine’s Day next year.
b. D to give C P10,000.00 per month until C graduates from college.
c. D to allow the use of his book by C until March 31, 2011.
d. D to award C with P50,000.00 when C receives his MBA degree two years from now.
102. Which of the following is an obligation with a resolutory period (in diem)?
a. D give to C P5,000.00 stipend per month until C completes his course in agriculture four years from
now.
b. D Review School to award any of its reviewees who places first in the May 2011 CPA Board
Examination.
c. D to give C a monthly allowance of P5,000.00 until C’s father finds work.
d. D to give C P5,000.00 per month for the medication of C’s father until C’s father dies.
103. If the period was established for the benefits of the debtor, the debtor shall lose such benefit in the
following cases, except if:
a. He becomes insolvent unless he gives a guaranty or security for the debt.
b. He does not furnish the creditor any guaranty or security.
c. The guaranty or security that he furnished is impaired through his own fault.
d. He attempts to abscond.
104. D obtained a loan of P200,000.00 from C. The loan bears interest at 12% per annum and is secured by a
chattel mortgage constituted on D’s only fishing boat. C gave D the option to pay the loan and the accrued
interest on or before the end of the year. Six months before due date, the fishing boat sank during a
storm.
a. C may demand immediate payment of the loan and the accrued interest unless D gives another
security that is equally satisfactory.
b. C may not demand immediate payment of the loan and the accrued interest because the loss of the
security was due to a fortuitous event.
c. D’s obligation to pay the loan and the accrued interest is extinguished because of the rule that no
person shall be responsible for fortuitous event.
d. C may demand immediate payment of the loan and accrued interest even if D is willing to give
another security because the original security, being determinate, is not replaceable.
105. Two or more prestations are due but the complete performance of one of them is sufficient to extinguish
the debt.
a. Conjunctive obligation
b. Alternative obligation
c. Facultative obligation
d. Simple obligation
106. In an alternative obligation, the right of choice as a rule belongs to the:
a. Debtor
b. Creditor
c. Both the debtor and the creditor whoever exercises it first.
d. Neither the debtor nor the creditor because the parties must stipulate on who has the right of
choice
107. Domingo is obliged to deliver a specific horse or a specific carabao to Casimiro on March 31. The
obligation does not state whether Domingo or Casimiro has the right of choice. On March 25, Casimiro
informed Domingo that he (Casimiro) preferred that the horse be given to him. Domingo did not reply to
Casimiro’s request. On the March 27, the horse was struck and killed by lightning.
a. Domingo’s obligation is extinguished.
b. Domingo is still obliged to deliver the carabao on March 31.
c. The obligation became a simple obligation to deliver the horse when Casimiro relayed his preference
to Domingo.
d. Domingo is liable to Casimiro for damages by reason of default.
108. The following statements are presented to you:
I. In an alternative obligation, the debtor may compel the creditor to receive part of one undertaking and
part of another undertaking.
II. The debtor may choose to perform any prestation although the same in unlawful, impossible or which
could not have been the object of the obligation, provided such prestation was stipulated.
a. Both statements are true
c. Only statement I is true
109. D is obliged to give C P10,000.00 or 10 sacks of rice worth P1,000.00 each or a total of P10,000.00. Based
on the foregoing statement, which of the following is incorrect?
a. D, at his option, may give C P5,000.00 and 5 sacks of rice.
b. D may give C P5,000.00and 5 sacks of rice if C consents.
c. D, at his option, may give C P10,000.00.
d. D, at his option, may give C 10 sacks of rice.
110. D is obliged to give C P50,000.00 or 50 sacks of corn stored in D’s barn worth P50,000.00 for milling or
several grams of “shabu” worth P50,000.00, or paint solely by himself 30 houses belonging to C in one day.
Before due date, roots from the corn has sprouted.
a. D may deliver P50,000.00
b. D may deliver the corn.
c. D may deliver the “shabu”
d. D may paint solely by himself the 30 houses of C in one day.
111. D is obliged to deliver to C Object 1 or Object 2 or Object 3. Before due date, Object 1 is lost through the
fault of D. In this case:
a. D is obliged to pay damages to C by reason of the loss of Object 1 due to his fault.
b. D may deliver to C either Object 2 or Object 3, at his option, without any obligation to pay damages.
c. D may deliver to C either Object 2 or Object 3, at his option, with obligation to pay damages.
d. D must replace Object 1 with another of the same kind in order that he may not be held liable for
damages.
112. D is obliged to deliver to C either Object 1 or Object 2 or Object 3. Before due date, Object 1 and Object 2
were lost one after the other due to D’s fault. Later, Object 3 was also lost but through a fortuitous
event.
a. D is obliged to pay damages to C for the loss of Object 1 and Object 2.
b. D’s obligation is extinguished.
c. D must replace Object 1 and Object 2 with other Objects of the same kind and quality.
d. D must pay the value of Object 2 which was the last Object lost due to his fault.
113. D is obliged to deliver either Object 1 or Object 2 or Object 3 to C. By agreement, the right of choice was
granted to C. Before C could communicate his choice to D, Object 1 and Object 2 were lost one after the
other due to D’s fault. Which of the following is incorrect?
a. D’s obligation became a simple obligation to deliver Object 3 upon the loss of Object 1 and Object 2,
with no other options available to C.
b. C may require D to pay the value of Object 1, the first item that was lost, plus damages.
c. C may require D to pay the value of Object 2, the last item that was lost, plus damages.
d. C may require D to deliver Object 3 without any right to ask for damages.
114. An obligation where only one prestation is due but the debtor may render another in substitution.
a. Simple obligation
c. Facultative obligation
d. Conjunctive obligation
115. D obtained a loan of P100,000.00 from C. The parties stipulated that on due date. D, if he so desires, may
deliver to C a specific ring instead of paying P100,000.00. This obligation is a:
a. Simple obligation
c. Conjunctive obligation
d. Facultative obligation
116. In a facultative obligation, the choice as to whether the substitute will be delivered or not belongs to:
a. The debtor only
b. The creditor only
c. Both parties
d. Neither of the parties
117. D is obliged to deliver to C a specific Nokia cell phone. The parties stipulated that D could deliver to C a
specific Sony Ericsson cell phone as substitute. Before due date and while D has not communicated to C
whether he would deliver the Sony Ericsson cell phone, the Sony Ericsson cell phone was lost due to his
(D’s) fault. In this case:
a. D is obliged to pay damages to C without any obligation to deliver the Nokia cell phone.
b. D is obliged to deliver the Nokia cell phone to C but with obligation to pay damages.
c. D is still obliged to deliver the Nokia cell phone to C but without obligation to pay damages.
d. D is obliged to pay damages to C or deliver to him the Nokia cell phone at his (D’s) option.
118. D is obliged to deliver to C a specific Nokia cell phone on March 31. The parties stipulated that D could
deliver to C a specific Sony Ericsson cell phone as substitute. On March 25, D informed C that he would
deliver the Sony Ericsson cell phone. The following day, the Nokia cell phone was lost due to D’s fault. In
this case:
a. D is obliged to pay damages to C for the loss of the Nokia cell phone through his fault without any
obligation to deliver the Sony Ericsson cell phone.
b. D is still obliged to deliver the Sony Ericsson cell phone but with obligation to pay damages.
c. D is still obliged to deliver the Sony Ericsson cell phone to C but without obligation to pay damages.
d. D is obliged to replace the Nokia cell phone with another one of the same brandand model in order
that he may not be held liable for damages.
119. A facultative obligation differs from an alternative obligation in that in a facultative obligation:
a. Only one prestation is due.
b. The right of choice belongs to the debtor unless it is expressly granted to the creditor.
c. If there are void prestations, the obligation remains if there are others that are valid.
d. If all prestations are impossible except one, that which is possible must still be given.
120. D borrowed P10,000.00 from C. On due date, D did not have any money so he proposed that C accept
either a specific ring or a specific bracelet for delivery after one week to settle the debt. C accepted the
proposal. Which of the following statements is false?
a. D’s new obligation is an alternative obligation.
b. D’s obligation to give P10,000.00 is extinguished.
c. The obligation to give P10,000.00 is extinguished by reason of novation.
d. The obligation to give P10,000.00 is not extinguished until D delivers either the ring or the bracelet.
121. When there is a concurrence of two or more debtors and/or two or more creditors in one and the same
obligation, the obligation is presumed to be:
a. Joint on both sides.
b. Solidary on both sides.
c. Joint on the part of the debtors, and solidary on the part of the creditors.
d. Solidary on part of the debtors, and joint on the part of the creditors
122. A, B and C are indebted to X, Y and Z for P27,000.00. How many distinct debts are there in the obligation?
a. One
b. Three
c. Six
d. Nine
123. A and B owe X and Y P4,000.00 X may collect:
a. P2,000.00 from A and P2,000.00 from B.
b. P2,000.00 from A or P2,000.00 from B.
c. P1,000.00 from A and P1,000.00 from B.
d. P4,000.00 from A or P4,000.00 from B.
124. A and B, joint debtors, owe X and Y, solidary creditors, P4,000.00. X may collect:
125. A and B, solidary debtors, owe X and Y, solidary creditors, P4,000.00. X may collect:
126. A and B, solidary debtors, owe X and Y, solidary creditors, P4,000.00. X may collect:
127. If the debtors are joint debtors and the creditors are joint creditors, X may collect from A:
a. P12,000.00
b. P4,000.00
c. P3,000.00
d. P1,000.00
128. If the debtors are joint debtors and the creditors are solidary creditors, X may collect from A:
a. P12,000.00
b. P4,000.00
c. P3,000.00
d. P1,000.00
129. If the debtors are solidary debtors and the creditors are joint creditors, X may collect from A:
a. P12,000.00
b. P4,000.00
c. P3,000.00
d. P1,000.00
130. If there is mixed solidarity, X may collect from A:
a. P12,000.00
b. P4,000.00
c. P3,000.00
d. P1,000.00
Item 131 to 146 are based on the following information:
A and B owe X and Y P10,000.00. The share of A in the debt is 60%, while that of B is 40%.
The share of X in the credit is 70%, while that of Y is 30%
Item 131 to 134 are based on the assumption that the obligation is joint on both sides.
131. X may collect from A:
a. P10,000.00
b. P7,000.00
c. P6,000.00
d. 4,200.00
132. X may collect from B:
a. P10,000.00
b. P7,000.00
c. P4,000.00
d. P2,800.00
133. Y may collect from A:
a. P10,000.00
b. P3,000.00
c. P6,000.00
d. P1,800.00
134. Y may collect from B:
a. P10,000.00
b. P3,000.00
c. P4,000.00
d. P1,200.00
a. P10,000.00
b. P7,000.00
c. P6,000.00
d. P4,200.00
a. P10,000.00
b. P7,000.00
c. P4,000.00
d. P2,800.00
a. P10,000.00
b. P3,000.00
c. P6,000.00
d. P1,800.00
a. P10,000.00
b. P3,000.00
c. P4,000.00
d. P1,200.00
Items 139 to 142 are based on the assumption that the debtors are solidary debtors and the creditors are joint
creditors.
a. P10,000.00
b. P7,000.00
c. P6,000.00
d. P4,200.00
a. P10,000.00
b. P7,000.00
c. P4,000.00
d. P2,800.00
a. P10,000.00
b. P3,000.00
c. P6,000.00
d. P1,800.00
a. P10,000.00
b. P3,000.00
c. P4,000.00
d. P1,200.00
a. P10,000.00
b. P7,000.00
c. P6,000.00
d. P4,200.00
a. P10,000.00
b. P7,000.00
c. P4,000.00
d. P2,800.00
a. P10,000.00
b. P3,000.00
c. P6,000.00
d. P1,800.00
a. P10,000.00
b. P3,000.00
c. P4,000.00
d. P1,200.00
147. When is there solidary liability?
a. When the obligation expressly states that the liability shall be solidary.
b. When the law requires solidarity.
c. When the nature of the obligation requires solidarity.
148. In which of the following cases does the law provide for solidary liability?
a. The liability of two or more persons who have appointed an agent for a common transaction or
undertaking.
b. The liability of two or more payees when they received payment which was not yet due.
c. The liability of two or more persons for a quasi-delict.
149. A, B and C are jointly indebted to X in the amount of P30,000.00. Before due date, A becomes insolvent.
On due date, X can collect:
a. P15,000.00 from B, and P15,000.00 from C.
b. P10,000.00 from B, and P10,000.00 from C.
c. P20,000.00 from B, and P20,000.00 from C.
d. P30,000.00 from B, and P30,000.00 from C.
150. A, B and C are jointly indebted to X in the amount of P12,000.00. C was a minor at the time the obligation
was constituted. X may collect:
a. P6,000.00 from A, and P6,000.00 from B.
b. P12,000.00 from A, or P12,000.00 from B.
c. P4,000.00 from A, and P4,000.00 from B.
d. P8,000.00 from A, or P8,000.00 from B.
151. The following rules are applicable to a joint indivisible obligation, except:
a. The creditors must take a demand against all the debtors for the demand to be effective.
b. A renunciation by a joint creditor of his share in the obligation extinguishes the whole obligation.
c. If one of the debtors is insolvent, the others shall not be liable for his share.
d. A joint debtor who is not ready to comply with his part of the obligation shall be liable for his share of
the debt and the entire amount of damages as a result of the non-compliance.
152. The following statements are presented to you:
I. The indivisibility of an obligation necessarily gives rise to solidarity.
II. Solidarity necessarily implies indivisibility.
c. Statements I is true; Statements II is false.
d. Statements I is false; Statements II is true.
153. A, B and C are solidary debtors of X in the amount of P9,000.00. The share of A is payable today; the
share of B is payable on Christmas day next year; and the share of C, when X passes the CPA Board
Examination two years from now. Today, X may collect from A:
a. P9,000.00
b. P6,000.00
c. P3,000.00
d. Nothing
154. Refer to the preceding number. Today, if X instead proceeds against B, X may collect from B.
a. P9,000.00
b. P6,000.00
c. P3,000.00
d. Nothing
155. A, B and C are solidary debtors of X in the amount of P6,000.00. X condones the share of A. A accepts the
condonation. Later, B pays X P4,000.00. When B demanded reimbursement from C, C could not pay
because he was already insolvent. In this case, B may collect from A:
a. Nothing because the share of A had already been extinguished by condonation.
b. P4,000.00
c. P2,000.00
d. P1,000.00
156. A, 25; B, 30; and C, 17, are solidary debtors of X in the amount of P30,000.00. X may collect from A:
a. P30,000.00
b. P20,000.00
c. P10,000.00
d. Nothing
157. Refer to the preceding number. X may collect from C:
a. Nothing.
b. P30,000.00
c. P20,000.00
d. P10,000.00
158. A, B and C are solidary debtors of X in the amount of P12,000.00. A pays X P12,000.00. When A
demanded reimbursement from B, B could not pay because he had become insolvent. In this case, A may
collect from C:
a. Nothing.
b. P8,000.00
c. P6,000.00
d. P4,000.00
I. A solidary creditor may assign his rights to a third person without the consent of the other creditors.
II. A solidary debtor, on the ground of equity, is entitled to reimbursement from his fellow debtors if he
paid the obligation after it has prescribed.
c. Only Statements I is true.
d. Only Statements II is true.
160. A and B are solidary debtors of X in the amount of P20,000.00. The debt is due on March 31, 2008. On
March 15, 2008, A paid X P20,000.00. On April 15, 2008, B was ready to reimburse A. How much shall B
reimburse A?
a. P10,000.00 plus interest from March 15, 2008.
b. P10,000.00 plus interest from March 31, 2008.
c. P10,000.00 without any interest because A paid before due date.
d. Nothing, because A paid when the obligation was not yet due.
161. A, B and C are bound in solidum to deliver a specific horse to X. On due date, X demanded delivery of the
horse from A but A did not comply, Two days later, the horse was struck and killed by lightning. Based on
the foregoing, which of the following statements is incorrect?
a. The obligation of A, B and C is extinguished by reason of fortuitous event.
b. The obligation of the debtors is converted into a monetary obligation to pay the value of the horse
plus damages and interest.
c. X may demand payment from any of the debtors including B and C who were not at fault.
d. If B or C pays X, B or C can go after A to recover what he had paid to X.
162. A promissory note reads as follows:
“I promise to pay Patricia Perez or order the sum of P9,000.00.
(Sgd.) Mary Molina (Sgd.) Mina Montes (Sgd.) Maila Mora”
Note: Maila Mora is insolvent.
How much may Patricia Perez collect from Mary Molina?
a. P9,000.00
b. P6,000.00
c. P3,000.00
d. Nothing, because the note is void, since it says “I promise to pay” yet it is signed by three persons.
163. The following obligations are divisible, except:
a. When the obligation has for its object the execution of certain number of days of work.
b. When the obligation has for its object the accomplishment of work by metrical units.
c. Analogous things which by their nature are susceptible of partial performance.
d. Obligation to give definite things.
164. These obligations are presented to you:
I. Obligation to paint a house in 5 days.
II. Obligation to deliver a specific car.
III. Obligation to give a vocal solo rendition of the Philippine National Anthem.
IV. Obligation to construct a fence which is 10 meters long and 2 meters high.
Which of the foregoing obligations are divisible?
a. I and II
b. III and IV
c. I and IV
d. II and III
165. Refer to the obligation enumerated in the preceding number. Which of the said obligations are
indivisible?
a. I and II
b. III and IV
c. I and IV
d. II and III
166. As a rule, in an obligation with a penal clause, the penalty shall take the place of the following in case of
non-compliance.
a. Damages only
b. Interest only
c. Damages and interest
d. Neither damages nor interest
167. Aside from the penalty, damages and interest may be demanded in which of the following cases?
a. When there was a stipulation the aside from the penalty, damages and interests may also be
recovered.
b. When the debtor refuses to pay the stipulated penalty.
c. When the debtor is guilty of fraud in the performance of the obligation.
168. These statements concerning obligations with a penal clause are presented to you:
I. As a rule, the debtor may exempt himself from the performance of the principal obligation by just
paying the penalty.
II. As a rule, the creditor can demand the fulfillment of the principal obligation and the penalty at the
same time.
169. These statements concerning obligations with a penal clause are presented to you:
I. Proof of actual damages suffered by the creditor is required in order that the penalty may be
demanded.
II. The penalty cannot be reduced by the court if there was partial performance because of the
stipulation the parties that the same must be paid in full in case of non compliance.
170. D is obliged to paint the car of C in three days. The parties stipulated that in case D failed to paint the car
within the said period, D would give 5 grams of “shabu” as penalty for every day of delay.
Principal Obligation Penalty
a. Valid Valid
b. Void Void
c. Void Valid
d. Valid Void
171. It means not only the delivery of money but also the performance of an obligation in any other manner.
a. Extinguishment
b. Enforcement
c. Payment or performance
d. Alienation of property
172. Although it is not complete, the payment shall extinguish the obligation:
I. If the obligation has been substantially performed is good faith.
II. If the creditor accepts the performance despite knowing its incompleteness or irregularity and
without expressing any protest or objection.
The statements is true with respect to:
a. I only
b. II only
c. Both I and II
d. Neither I nor II
173. D obtained a loan of P100,000.00 from C. The debt which is payable in 10 equal monthly installments is
secured by a real mortgage on D’s lot. D paid the first installment of P10,000.00 on due date. T, a third
person, paid C P100,000.00 without the knowledge of D and believing that the amount owed by D was still
P100,000.00
a. T can recover P100,000.00 from D. If D cannot pay, T can foreclose the mortgage.
b. T can recover P90,000.00 from D. if D cannot pay, T can foreclose the mortgage.
c. T cannot recover any amount from D. Neither can be foreclose the mortgage because he paid C
without the knowledge of D.
d. T can recover P90,000.00 from D. If D cannot pay, T cannot foreclose the mortgage.
174. D is indebted to C in the amount of P200,000.00. The debt is secured by a chattel mortgage of D’s car and
the guaranty of G who signed together with D a promissory note for the debt. G pays C P200,000.00 with
the knowledge of D.
a. G can collect P100,000.00 from D. If D cannot pay, G can foreclose the chattel mortgage.
b. G cannot collect from D. Neither can he foreclose the chattel mortgage because he paid C without the
knowledge of D.
c. G can collect from D. if D cannot pay, G cannot foreclose the chattel mortgage.
d. G’s guaranty is not extinguished because he paid C without the knowledge of D.
175. It transfers to the person who assumes the credit right with all the rights thereto appertaining, either
against the debtor the debtor or against third persons, be they guarantors or possessors of mortgages.
a. Substitution b. Subrogation c. Assignment d. Negotiation
176. D owned C P4,000.00. T informed D that be would pay the debt to C and that D need not reimburse him.
However, D did not consent to the payment and the non-reimbursement. Nonetheless, C accepted the
payment from T.
a. The payment made by T to C is deemed a donation to D.
b. T cannot recover anything from D.
c. The payment is valid with respect to C.
d. D’s consent is required for the validity of the payment.
177. Which of the following is required in order that he payment made by the debtor will be considered valid?
a. Free disposal of the thing due.
b. Capacity to alienate the thing due.
c. Both (a) and (b)
d. Neither (a) nor (b)
178. Aside from the person in whose favor the obligation has been constituted, to whom shall payment be
made?
a. To the creditor’s heirs, if the creditor had died.
b. To the creditor’s assignees, if the credit has been assigned.
c. To any third person authorized to receive payment/
d. To all the foregoing, whichever is applicable under the circumstances.
179. D borrowed P20,000.00 from C. The debt, which bears interest at 10% per annum, is due after one year.
On due date, D paid C P20,000.00 representing the principal, but by that time C had already become
insane. Later, G, the guardian of C, demanded payment from D but D presented a receipt issued by C
acknowledging the payment. Upon investigation, G discovered that P8,000.00 was still in C’s possession;
P9,000.00 was spent by C for groceries as evidenced by the receipt of Esem Supermarket; and P3,000.00
was admitted by C to have been lost by him in a gambling game. G may demand payment from D in the
amount of:
a. P2,000.00, representing the interest.
b. P5,000.00, representing the interest and the gambling loss.
c. P14,000.00, representing the interest, the gambling loss, and the cost of groceries.
d. P22,000.00, the total debt because payment to an incapacitated creditor is not valid.
180. In the preceding number, D, instead of making payment to C who was insane, should have availed himself
of which remedy to protect himself?
a. Consignation
b. Consignment
c. Assignment
d. Cession
181. Payment to a third person is valid in the following cases, except:
a. When the third person is authorized to receive payment.
b. When the payment to the third person has redounded to the benefit of the creditor although the
third person is not authorized to receive payment.
c. If by the creditor’s conduct, the debtor has been led to believe that the third person was authorized
to receipt payment.
d. If the payment is made in good faith to a third person in possession of the credit instrument although
he may not be in possession of the credit itself.
182. D owed C Electric Company P3,000.00 representing the power bill of D for May. C Electric Company gave
a collector’s uniform to T although T was not its employee. T, without authority from C Electric Company,
wore the uniform, got the company receipt, and collected the amount owed by D. D made the payment to
T believing that the latter was an employee of C Electric Company. The payment made by D to T is:
a. Valid if T remits the payment to C Electric Company.
b. Valid even if T does not remit the payment to C Electric Company.
c. Not valid because T is not an employee of C Electric Company.
d. Not valid because T was not authorized to receive the payment.
183. D1 owes D2 P20,000.00. C files a complaint for collection against D2 allegedly for a sum of money that D2
owed him, and asks the court to issue the order to D1 not to make any payment to D2. The court issues
the order. D1, however, pays D2 in violation of the court order.
I. If the court renders judgment in favor of C, D1 can be required to pay again, this time, to C.
II. If the court renders judgment that C is not a creditor of D2, the payment made by D1 to D2, is
considered validated.
184. In an obligation to give, the debtor may compel the creditor to accept a different one provided it:
a. Is more valuable than that which is due.
b. Is of the same value as that which is due.
c. Has the same function as that which is due.
d. No, the debtor cannot compel the creditor to accept a thing that is different from that which is due.
185. Which of the following statements is/are true if the obligation is to give an indeterminate thing whose
quality and circumstances have not been stated?
I. The creditor can demand a thing of superior quality.
II. The debtor can deliver a thing of inferior quality.
a. Both are true
b. Only I is true
c. Only II is true
d. Neither I nor II is true.
I. The creditor cannot be compelled to receive partial payments.
II. The debtor may be compelled to make partial payments.
III. The creditor may demand, and the debtor make effect, the payment of the liquidated part of a debt
without them waiting for the liquidation of the unliquidated part.
a. I and II and true.
b. II and III are true
c. I and III are true
187. It refers to the money or currency which a debtor may compel a creditor to accept in payment of his debt,
whether public or private.
a. Bill and coins
b. Legal tender
c. Certified check
d. Bill of exchange
188. One-sentimo, 5-sentimo, 10-sentimo, and 25-sentimo coins are legal tender up to:
a. P20.00
b. P50.00
c. P100.00
d. P500.00
189. One-Piso, 5-Piso and 10-Piso coins are legal tender up to:
a. P50.00
b. P100.00
c. P500.00
d. P1,000.00
190. All bills are legal tender up to:
a. P5,000.00
b. P10,000.00
c. P100,000.00
d. Any amount
I. Monetary obligations, as a rule, shall be settled in the currency which is legal tender in the Philippines.
II. The parties are prohibited by law from stipulating that the obligation or transaction shall be settled in
any order currency at the time of payment.
192. The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents
shall produce the effect of payment when they:
a. Have been cashed
b. Are delivered
c. Are deposited in the bank
d. Have been impaired without the fault of the creditor
193. It refers to the sharp sudden increase in money or credit or both without a corresponding increase in
business transactions.
a. Inflation
b. Deflation
c. Buyer’s market
d. Seller’s market
194. D obtained a loan of P500,000.00 from C. The loan is payable at the end of 10 years. Before the maturity
of the loan, an extraordinary inflation supervened causing the value of P500,000.00 to fall to P100,000.00
on the date of maturity. At maturity, D will have to pay C:
a. P100,000.00
b. P500,000.00
c. P2,500,000.00
d. Some other amount
195. D obtained a loan of P200,000.00 from C. The loan is payable at the end of 5 years. Before the maturity of
the loan, an extraordinary deflation supervened causing the value of P200,000.00 to rise to P500,000.00
on the date of maturity. At maturity, D will have to pay C:
a. P200,000.00
b. P500,000.00
c. P80,000.00
d. Some other amount
196. Under the provisions on Obligations, dation in payment and the following are special forms of payment,
except:
a. Application of payment
b. Tender of payment and consignation
c. Payment by cession
d. Payment in escrow
197. Property is alienated to the creditor in payment of monetary debt. This is:
a. Payment by cession
b. Dation in payment
c. Application of payment
d. Tender of payment and consignation.
198. Dacion en pago is governed by the law of sales. However, dacion en pago is different from sale in that in
dacion en pago:
a. There is no pre-existing credit.
b. Obligation are created.
c. There is more freedom in fixing the price.
d. An act of novation takes place.
199. If refers to the designation of the debt to which a payment shall apply.
a. Tender of payment
b. Consignation
c. Application of payment
d. Assignment
200. D owed C the following debts: P12,000.00 due on May 1; P12,000.00 due on May 5; P12,000.00 due on
May 15 (secured by a pledge of D’s ring); and P12,000.00 due on May 25. On May 22, D wanted to tender
payment to C but he had only P12,000.00. As of such date, none of the debts had been paid. In this case,
D may apply the payment to:
a. Any of the four debts since each one is the same amount of the payment.
b. All debts proportionately at P3,000.00 each.
c. Only to the debt due on May 15 since it is the most onerous debt to D.
d. To any of the debts on May 1, May 5, and May 15, since they have all become due as of May 22.
201. Assume that in the preceding number. D did not apply the payment. Neither did C who just issued to D a
receipt acknowledging the payment of P12,000.00. In this case, payment shall be applied by operation of
law to:
a. All the debts proportionately at P3,000.00 each.
b. The debts due on May 1, May 5 and May 15, all of which have become due as of May 22,
proportionately at P4,000.00 each.
c. The debt due on May 15 since it is the most onerous to D.
d. The debt due on May 1 following the first-due, first-pay” basis.
202. D owed C the following debts: P6,000.00 due on March 1, P12,000.00 due on March 8; a cell phone worth
P6,000.00 due on March 15; and P6,000.00 due on March 30. By agreement of the parties, the period was
established for the benefit of D. On March 22, D wanted to make payment but he had only P6,000.00. D
may apply the payment to:
a. The debt due on March 1 or March 15 since both have become due as of March 22, and each has the
same amount as the payment.
b. The debt due on March 1 or March 30 since both are monetary debts and each has the same amount
as the payment.
c. The debt due on March 8 in partial payment of the debt.
d. The debt due on March 1, March 6 or March 30, since each has the same amount as the payment.
203. Refer to the preceding number. If D does not apply the payment, C may apply the payment to the debt
due on:
a. March 1 or March 15
b. March 1 or March 30
c. March 1, March 15 or March 30
d. March 1 in full payment, or the debt due on March 8 in partial payment.
204. Refer to the two preceding numbers. If neither D nor C applied the payment, payment shall be applied by
operation of law to:
a. The debts due on March 1 and March 8 proportionately at P2,000.00 (6/18) and P4,000.00 (12/18).
b. The debts due on March 1 and March 30 proportionately at P3,000.00 each.
c. The debts on March 1, March 8 and March 15 proportionately at P1,500.00 (6/24), P3,000.00 (12/24),
and P1,500.00 (6/24).
d. All debts proportionately at P1,200.00 (6/30), P2,400.00 (12/30), P1,200.00 (6/30).
205. It refers to the assignment by the debtor of all his properties in favor of his creditors so that the latter may
sell them and recover their claims out of the proceeds.
a. Payment by cession
b. Dation in payment
c. Tender of payment
d. Payment in escrow
206. Which of the following is a common characteristics of dation in payment and payment by cession?
a. There should be two or more creditors
b. It affects all the debtor’s properties
c. The debtor must be insolvent
d. Obligations are extinguished either in full or in part.
207. The following are characteristics of payment by cession, except:
a. The creditors do not become the owners of the debtor’s properties which are assigned to them.
b. The obligations are extinguished only to the extent of the proceeds of the sale of the debtor’s
properties.
c. The debtor may or may not be insolvent.
d. All the debtor’s properties are involved except those exempt from execution.
208. The act of the debtor of offering his payment to the creditor is known as:
b. Consignation
c. Consignment
d. Assignment
209. The act of placing the payment at the disposal of judicial authorities is known as:
a. Consignment
b. Assignment
c. Consignation
d. Tender
210. D owes C P50,000.00. On due date, D tendered payment in the form of certified check amounting of
P50,000.00. C refused to accept the check and demanded that he be paid in bills.
a. D may deposit the payment in court by way of consignation.
b. C’s refusal to accept the check is not justified because the check is certified by the bank to be covered
with sufficient funds.
c. C’s refusal to accept the check is justified because a check is not legal tender.
d. D’s tender of payment is valid.
211. D owes C P50,000.00. On due date, D tendered payment amounting to P50,000.00 consisting of
P50,000.00 pieces of P1.00 coins. C. refused to accept the payment and demanded that he be paid in bills.
a. D may deposit the payment in court by way of consignation.
b. C’s refusal to accept the payment is not justified because the payment being offered is actual money.
c. C’s refusal to accept the payment is justified because the payment being offered is not legal tender.
d. D’s tender of payment is valid.
212. D owes C P1,000,000.00. On due date, D tendered payment amounting to P1,000,000.00 in 50,000.00
pieces of P20.00 bills. C refused to accept the payment and demanded that he be paid in P1,000.00 bills.
Based on the foregoing information, which of the following statements is incorrect?
a. D’s tender of payment is valid.
b. C’s refusal to accept the payment is not justified since the amount being tendered is legal tender.
c. C’s refusal to accept the payment is justified on the ground that 50,000 pieces of P20.00 bills are too
bulky.
d. D may deposit the payment in court by way of consignation.
213. The expenses of consignation when properly made shall be shouldered by:
a. The debtor
b. The creditor
c. The debtor and creditor equally
d. All the persons interested in the obligation equally.
214. Consignation will extinguish an obligation:
I. Upon the declaration by the court that consignation has been properly made.
II. Upon acceptance by the creditor of the consignation.
The statement is true with respect to:
a. I only
b. II only
c. Both I and II
d. Neither I nor II
215. Withdrawal by the debtor of the payment consigned before the creditor has accepted the consignation or
before the court has declared that the consignation has been properly made produces the following
effects, except:
a. The obligation will remain in force.
b. The co-debtors, guarantors and sureties are not released.
c. The creditor does not lose preference over the thing.
d. The creditor shoulders the expenses of consignation.
216. Withdrawal by the debtor of the payment consigned before the creditor has accepted the consignation or
before the court has declared that the consignation has been properly made produces the following
effects, except:
a. The obligation is revived.
b. The creditor loses preference over the thing.
c. The guarantors and sureties are not released.
d. The obligation becomes joint if it was previously solidary.
217. Consignation may be made even without previous tender of payment is the following cases, except:
a. When the creditor is absent or unknown or does not appear at the place of payment.
b. When the creditor is incapacitated but the debtor knows that the creditor has a legal representative
to receive payment.
c. When two or more persons claim the same right to collect.
d. When the creditor refuses to give a receipt without just cause.
218. D issued a promissory note payable to the order of C. The note amounted to P50,000.00 and bears
interest at 12% per annum. On the due date, X approached D and informed the latter that the note was
indorsed to him but that he had lost it. He now demanded payment from D by presenting an affidavit of
loss. D does not want to make any payment and now approaches you on which course of action he should
take. What course of action will you tell D to take?
b. Consignation
c. Consignment
d. Assignment
219. These statements concerning loss are presented to you:
I. A thing may be considered lost although it still exists physically.
II. For loss to extinguish an obligation, it must occur after the constitution of the obligation.
c. Only statement I is true.
220. The loss of a determinate thing through a fortuitous event will not extinguish an obligation, except:
a. When the debtor has incurred in delay.
b. When the nature of the obligation requires the assumption of risks.
c. When the law provides that there shall be liability even in case of loss through a fortuitous event.
d. When the debt proceeds from a criminal offense and the creditor is in moraaccipiendi.
I. The loss of a particular thing while it is in the possession of the debtor shall be presumed to be due to
his fault.
II. If the obligation is to give an indeterminate thing, the loss or destruction of anything of the same kind
does not extinguish the obligation.
c. Only Statement I is true.
d. Only Statement II is true.
222. D is obliged to deliver 20 sacks of rice to C. D intended to get 20 sacks of rice for delivery to C from his
stocks of 300 sacks of rice stored in his warehouse. Before due date, D’s warehouse was razed in a fire
together with all the rice store therein. The warehouse and the things stored therein are covered by
insurance.
a. D’s obligation to give 20 sacks of rice to C is extinguished.
b. D’s obligation to give 20 sacks of rice to C is not extinguished because he can get 20 sacks of rice from
other sources for delivery to C.
c. C’s recourse is to go after the insurance company for the value of 20 sacks of rice.
d. D and C will share equally in the amount of the loss which is equivalent to the value of 20 sacks of
rice.
223. The gratuitous abandonment by the creditor of his right to proceed against the debtor is known as:
a. Condonation
b. Confusion
c. Concession
d. Compensation
Items 224 to 226 are based on the following information:

The following properties are involved in a condonation:
I. Immovable property
II. Movable property whose value exceeds P5,000.00
III. Movable property whose value is P5,000.00 or below.
224.The condonation that must be in a public instrument together with the acceptance thereof in order that it
may be valid is one that involves:
a. I only
b. II only
c. III only
d. I, II and III
225. The condonation that is valid although it is in a private instrument together with the acceptance thereof is
one that involves:
a. I and II
b. II and III
c. I and III
d. None of the foregoing
226. The condonation that is valid although it is in a private instrument together with the acceptance thereof is
one that involves:
a. I only
b. II only
c. III only
d. None of the foregoing
I. Condonation is generally gratuitous.
II. The condonation is inofficious when it impairs the legitime.
228. The following presumptions on condenation are presented to you:
I. The debt is presumed remitted if the public document evidencing a credit is voluntarily delivered by
the creditor to the debtor.
II. The private document evidencing a credit is presumed to the debtor if is found in the possession of the
debtor.
III. The accessory obligation of pledge is presumed to have been remitted when the thing pledged, after
its delivery or of a third person who owns the thing.
a. Statements I and II are true.
b. Statements II and III are true.
c. Statements I and III are true.
229.D is indebted to C for P20,000.00. The debt is evidenced by a promissory note signed by D as maker and G
as guarantor. On due date, C made a phone call to C and informed the latter that he was condoning the
debt. D expressed his gratitude to C.
a. Both the loan and the guaranty are extinguished.
b. Only the loan is extinguished.
c. Only the guaranty is extinguished.
d. Neither the loan nor the guaranty is extinguished.
230.The meeting in one person of the characters of debtor and creditor resulting in the extinguishment of the
debtor is known as:
a. Condonation
b. Confusion
c. Remission
d. Compensation
231.M is maker of a promissory note payable to the order of P, payee, G signed the note as guarantor of the
debt. P indorses the note to A, A to B, and B to C. On the date of maturity, C indorsed the note back to M.
The indorsement of the note to M extinguished:
a. Both the principal debt and the guaranty.
b. Only the principal debt
c. Only the guaranty
d. Neither the principal debt not the guaranty.
232.Refer to No. 231. If the note was instead indorsed by C to G on the date of maturity, such indorsement
extinguished.
a. Both the principal debt and the guaranty.
b. Only the principal debt.
c. Only the guaranty
d. Neither the principal debt nor the guaranty.
233.A, B and C are joint makers of a promissory note for P30,000.00 payable to the order of X. X indorsed the
note to Y, and Y to Z. On the date of maturity, Z indorsed the note to A. Such indorsement by Z to A
produced which of the following effects?
a. The total obligation of P30,000.00 is extinguished. A can go after B and C for reimbursement at
10,000.00 each.
b. Only P10,000.00 representing the share of A is extinguished. A, as the new creditor in his own right,
can go after B and C to collect P 10,000.00 each.
c. The total obligation of P30,000.00 is extinguished. A can go after B and C to collect P10,000.00 each
by virtue of his rights as the new creditor of the note.
d. No part of the note is extinguished because the indorsement made by Z was not in favor of all the
debtors.
234. A, B and C are solidary debtors of X for P9,000.00. The debt is evidenced by a note executed by all the
debtors and payable to the order of X. X indorsed the note to Y, and Y to Z. On the date of maturity, Z
indorsed the note to A. The indorsement to A produced which of the following effects?
a. The total obligation of P9,000.00 is extinguished. A can go after B and C for reimbursement at
P3,000.00 each.
b. Only P3,000.00 representing the share of A is extinguished. A, as the new creditor in his own right,
can go after B and C to collect P3,000.00 each.
c. The total obligation of P9,000.00 is extinguished. A can go after B and C to collect P3,000.00 each by
virtue of his rights as the new creditor of the note.
d. No part of the note is extinguished because the indorsement made by Z was not in favor of all the
debtors.
235. D borrowed P100,000.00 from C. D executed a promissory note payable to the order of C and mortgaged
his lot to secure the debt. Before the due date, D sold the lot to C. The sale of the lot to C:
a. Extinguished both the loan obligation and the mortgage.
b. Extinguished the loan obligation only.
c. Extinguished the mortgage only
d. Extinguished neither the loan obligation nor the mortgage.
236. When two persons in their own right are debtors and creditors of each other, the obligations of both are
extinguished. Such mode of extinguishment is known as:
a. Compensation
b. Concession
c. Condonation
d. Remission
237. Compensation is different from merger because in compensation:
a. There are two debtors and two creditors
b. There is one debtor and creditor
c. The debtor and creditor refer to the same person.
d. Payment is impossible.
238. Donna, a student of ABC College, enrolled for the second semester of academic year 2009-2010 and was
required to pay a tuition fee of P22,000.00 for the semester. However, it turned out that ABC College
owes Donna P2,000.00 representing refunds due to Donna from tuition fee increase collected during the
first semester by the school which was later disapproved by the Commission on Higher Education. In this
case, Donna needs to pay ABC College only P20,000.00 by reason of:
a. Condonation
b. Merger
c. Confusion
d. Compensation
239. Legal compensation requires that each one of the obligors be bound principally and that he be at the
same time a principal creditor of the other. In addition, it is also necessary that the following
requirements be present, except:
a. That both debts consist in a sum of money, or if the things due are consumable, they be of the same
kind, and also of the same quality if the latter has been stated.
b. That both debts have the same due date.
c. That both debts be liquidated and demandable.
d. That over neither of the debts there be any controversy commenced by third persons and
communicated in due time to the debtor.
240. D owes C P50,000.00. The promissory note evidencing the debt was signed by D as maker and G as
guarantor. C owes D P35,000.00. Both debts are due. If C goes after D and D cannot pay:
a. C can hold G liable for P50,000.00. G cannot claim compensation because he is not a principal debtor.
b. C can hold G liable, but G can claim compensation up to P35,000.00. Hence, he is liable only for
P15,000.00.
c. C cannot hold G liable because he is not the principal debtor.
d. C can collect P50,000.00 from G, but G can collect P35,000.00 from C.
241.D owes C P20,000.00 payable on or before October 31, 2010. C owes D P20,000.00 due on October 1,
2010. On October 1, 2010:
a. Only C may claim compensation
b. Only D may claim compensation
c. Only C may oppose any compensation being claimed by D
d. Either D or C may claim compensation.
242. The compensation referred to in the preceding number is known as:
a. Legal compensation
b. Facultative compensation
c. Voluntary compensation
d. Compensation is not allowed in such situation
I. Legal compensation takes place even though the debtors are creditors are not aware of the
compensation.
II. Compensation by operation of law takes place although the debts are payable at different places.
a. Both statement are true
b. Both statement are false
d. Only statement II is true
244. D owes C P10,000.00 by way of loan. C also owes D P10,000.00. If D demands payment from him, C can
claim compensation if the debt that he owes D arises from:
a. A claim for support by gratuitous title in arrears.
b. Civil liability arising from a criminal offense.
c. That of a bailee in commodatum.
d. That of a depositary.
245. D has a withdrawable savings deposit with C Bank to which he has an unpaid loan that is already due.
Who between D and C Bank may claim compensation?
a. D only
b. C Bank only
c. Both D and C bank
d. Neither D nor C Bank.
246.These statements are presented to you:
I. Judicial compensation is one ordered by the court when one of the parties has proved his claim for
damages against the other to whom he is also indebted.
II. Compensation cannot take place when one or both debts are rescissible or voidable because of the
possibility that the said debts may be rescinded or avoided.
247. D owes C P50,000.00 which is due on March 31. On the other hand, C owes D P15,000.00 which is due on
March 15. On March 18, C assigned his credit right to T with D giving his consent unconditionally. On
March 31, how much may T collect from D?
a. P50,000.00
b. P35,000.00
c. P15,000.00
d. Nothing
248. Refer to the preceding number. If D gave his consent to the assignment but reserved his right to the
compensation, how much may T collect from D on March 31?
a. P50,000.00
b. P35,000.00
c. P15,000.00
d. Nothing
Items 249 and 250 are based on the following data:
249.D owes C P80,000.00 which is due on may 20. On the other hand, C owes D the following debts:
P30,000.00 due on May 2; P10,000.00 due on May 9; P20,000.00 due on May 15; and P5,000.00 due on
May 21.
If on May 14, C assigned his credit right to T with notice to D but D did not give his consent to the
assignment, how much may T collect from D on May 20?
a. P40,000.00
b. P20,000.00
c. P15,000.00
d. Nothing because D did not give his consent to the assignment
250. Assume that on May 14, C assigned his credit right to T without informing D who learned of the
assignment only on May 18. How much may T collect from D on May 20?
a. P40,000.00
b. P20,000.00
c. P15,000.00
d. Nothing because D was not notified at the time of assignment
251. D owes C P50,000.00 representing the amount that C paid to X, a creditor of D, who resides in Calbayog
City. C incurred bank charges, transportation and other expenses amounting to P1,500.00 in remitting
representing the amount that D paid to Y, a creditor of C, who resides in Dumaguete City. D incurred bank
charges, transportation and other expenses amounting to P1,800.00 in remitting the payment to Y. Both
the principal debts are due.
I. Both the principal debts are extinguished by compensation.
II. C must pay D P300.00.
252.An obligation may be modified by:
a. Changing the object or principal condition
b. Substituting the person of the debtor
c. Subrogating a third person in the rights of the creditor
253. Expromision is different from delegacion in that in expromision:
a. All the parties (original debtor, new debtor and creditor) must give their consent to the substitution of
debtors.
b. The new debtor is always entitled to demand reimbursement of what he paid and subrogation.
c. The insolvency of the new debtor may revive the right of the creditor to go after the original debtor.
d. The substitution of the original debtor by a new one is initiated by a third person.
254.As a general rule, the extinguishment of the principal obligation by novation carries with it the
extinguishment of all accessory obligations. In the following cases, the accessory obligation is not
extinguished, except:
a. If the accessory obligation benefits third persons who did not give their consent to the novation.
b. If there was a stipulation that such accessory obligations shall subsist notwithstanding the novation.
c. In case a third person is subrogated in the rights of the creditor.
d. None of the foregoing.
255. D obtained a loan of P100,000.00 from C. The loan is secured by a mortgage of D’s lot and payable at the
end of one year. It also bears interest at 1% per month which by stipulation was to be paid by D to T, a
creditor of C, who agreed to the stipulation in his favor. Six months before due date, D and C agreed that
D would instead be giving a particular car worth P100,000.00. T was not aware of the novation.
a. The obligation to give the car is deemed secured by the mortgage of D’s lot.
b. T may validly damand the payment of interest from D for the next six months.
c. T may no longer demand the payment of the interest because the new obligation is not monetary
obligation.
d. The novation is void because T did not give his consent thereto.
256. D is obliged to give a specific camera to C. later, the parties agreed that D would instead give a cell phone
which C knew was stolen by D.
a. C may validly demand the delivery of the cell phone since it is not illegal per se.
b. C may demand only the delivery of the camera since the original obligation subsists, the new
obligation being void.
c. C may demand the delivery of the camera or the cell phone at his option because the obligation has
partaken the nature of an alternative obligation.
d. C may not demand either the camera or the cell phone because the nullity of the new obligaton
rendered both obligations void.
257. B was intimidated by S into buying the latter’s cell phone for P5,000.00 for which B executed a promissory
note payable after a month. On due date, when the intimidation no longer existed, B called upon S and
proposed to the latter to accept a ring instead of enforcing the note. S accepted the proposal.
a. The novation is void because the old obligation is voidable
b. The novation is valid because the old obligation is voidable
c. The novation is valid. Whatever defect that existed in the old obligation is deemed cured.
d. The novation is valid. However, B has the option to annul the old obligation.
258. D is obliged to give an unlicensed revolver to C. Later, the parties agreed that D would give C a toy air
gun.
a. The novation is valid because the new obligation is valid.
b. The novation is void because the old obligation is inexistent; hence, there is nothing to novate.
c. The novation is valid. The defect in the old obligation is deemed cured because the new obligation is
valid.
d. The old obligation subsists because it cannot be replaced by a new one even if it is valid.
259. D is obliged to give c P500,000.00 if C graduates as an honor student in his Bachelor of Science in
Accountancy (BSA) degree. Later, the parties agreed that D would give C a brand-new Toyota Vios car
instead of P500,000.00. The obligation of D to give C a Toyota Vios car is:
a. Subject to the condition that C must graduate as an honor student in his BSA degree.
b. Not subject to the same condition which is deemed extinguished by the novation of the obligation.
c. Subject to the said condition only if it was stipulated.
d. Void because of the absence of a stipulation of whether or not it is subject to the said condition.
Accordingly, D must still give C P500,000.00
I. D owes C1 P50,000.00 which is secured by a pledge of D’s ring. D also owes C2 P40,000.00. which is
unsecured. C2 pays C1 P50,000.00 without D’s knowledge.
II. D owes C P300,000.00 secured by the guaranty of G. T pays C with the tacit approval of D.
III.D owes C P100,000.00 secured by a mortgage of D’s lot and the guaranty of G. G pays C without D’s
knowledge.
In which of the above cases is the payor legally subrogated in the rights of C to go after D and the security
of the debt?
a. Cases I and II
b. Cases II and III
c. Cases I and III
d. All of the above cases

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QUIZZERS

1. The juridical necessity to give, to do or not to do refers to:

Item 33 to 37 are based on the following data:

33. The obligation of D to give his agricultural lot to C arose:

Item 131 to 146 are based on the following information:

Items 224 to 226 are based on the following information:

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