8901 Law on Obligation 1 PDF

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CPA REVIEW SCHOOL OF THE PHILIPPINESManilaRegulatory Framework for Business Transactions Atty. Dante O. Dela Cruz COVERAGE: Law on ObligationDirection: Read and select the best answer for the following questions. What is the definition of an obligation under Article 1156 of the New Civil Code of the...

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CPA REVIEW SCHOOL OF THE PHILIPPINES Manila Regulatory Framework for Business Transactions COVERAGE: Law on Obligation

Atty. Dante O. Dela Cruz

Direction: Read and select the best answer for the following questions. 1. What is the definition of an obligation under Article 1156 of the New Civil Code of the Philippines? a. Juridical necessity to do or not to do. b. Juridical necessity to give or not to give. c. Juridical necessity to give, to do or not to do. d. Juridical necessity to give, not to give, to do or not to do. 2. Which of the following statements best describes a negative obligation? a. It refers to an obligation which consists of giving or doing something. b. It refers to an obligation which consists to the delivery or giving of personal or real object. c. It refers to an obligation which consists of doing a particular prestation but not delivery of an object. d. it refers to an obligation which consists of abstaining from some act. 3. Which of the following is a positive and real obligation? a. Obligation to teach b. Obligation not to smoke in public place c. Obligation to deliver the goods d. None of the above 4. The following are the essential elements of an obligation, except a. An active subject, who has the power to demand prestation, also known as the obligee or creditor. b. A passive subject, who is bound to perform the prestation, also known as the obligor or debtor. c. Object or prestation, which is the promise or particular conduct to be performed in the performance of an obligation, and may consist of giving, doing or not doing a thing. d. Efficient cause, the tie which binds the parties to the obligation, also known as juridical tie or vinculum. e. The form in which the obligation is manifested. 5. Among the essential elements of an obligation, which are considered the personal elements? a. Obligee and obligor b. Prestation and vinculum c. Obligee and vinculum d. Prestation and obligor 6. The following statements concerning an obligation are correct, except a. The obligation to give is one in which the prestation consists in the delivery of a movable or an immovable thing. b. The obligation to do includes all kinds of work or services. c. The obligation not to do consists in abstaining from some act. d. The obligation not to give is a positive obligation. 7. The following are the requisites of a prestation or an object of an obligation, except a. It must be possible, physically and juridically. b. It must be determinate, or. at least, determinable according to pre-established elements or criteria. c. It must have possible equivalent in money. d. It must be a positive obligation only.

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8. The following are examples of vinculum or efficient cause or juridical tie of an obligation, except a. Relation established by law b. Relation established by contract c. Relation established by quasi-contract d. Relation established by quasi-delict e. Relation established by delict or crime f. Relation established by natural obligation 9. Which of the following obligations is not enforceable by a court action? a. Legal obligation b. Contractual obligation c. Civil obligation d. Natural obligation 10. Which of the following statements concerning the distinctions between civil obligation and natural obligation are true? I. Civil obligations derive their binding force from positive law, while natural obligations derive their binding effect from equity and natural justice. II. Civil obligations can be enforced by court action or the coercive power of public authority, while the fulfillment of natural obligations cannot be compelled by court action but depends exclusively upon the good conscience of the debtor. However, voluntary fulfilment of natural obligation by the debtor will preclude him from asking for reimbursement from the creditor of the amount he has voluntarily paid. a. b. c. d.

I only II only Both I and II Neither I nor II

11. The following are examples of natural obligations that cannot be enforced by court action but depends upon the voluntary fulfillment of debtor, except a. The obligation of a debtor to pay a loan evidenced by a written contract of loan but a period of 10 years had already lapsed from maturity date without demand from creditor. b. The obligation of a debtor to reimburse a third person who has paid the debtor's obligation aner it has already lapsed. c. The obligation of a testate or intestate heir to pay the debt of a decedent beyond the value of the property which he received by will or by the law of intestacy from the estate of the deceased. d. The obligation of the employer of a "Kasambahay" to pay the 13th month pay of the latter. 12. The following are the sources of civil obligation demandable in a court of law, except a. Law b. Contracts c. Quasi-contracts d. Quasi-delicts or Culpa Aquiliana or Torts e. Delict or Crime or acts/omissions punishable by law f. Religious doctrines 13. It is a source of an obligation that refers to the principles and regulations established in a community by some authority and applicable to its people, whether in the form of legislation or of custom and policies recognized and enforced by judicial decision. a. Law b. Contract c. Quasi-contract d. Quasi-delict

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14. Which of the following statements concerning obligations arising from law is incorrect? a. Only obligations expressly determined in the Civil Code or in special laws are demandable. b. The law cannot exist as a source of obligations, unless the acts to which its principles may be applied exist. c. The obligations and correlative rights arising from law shall be governed by the law by which they are created. d. The obligations derived from law are presumed. 15. What is the source of obligation of parents to provide support to their children? a. Law b. Contracts c. Quasi-contracts d. Quasi-delicts e. Delict 16. It is a source of an obligation that refers to meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. a. Law b. Contract c. Quasi-contract d. Quasi-delict 17. Which of the following statements concerning obligations arising from contracts are correct? I. Obligations arising from contracts have the force of law between contracting parties. II. Obligations arising from contracts should be complied with in good faith. a. b. c. d.

I only II only Both I and II Neither I nor II

18. It is a source of an that refers to a juridical relation which arises from a certain lawful, voluntary and unilateral act, to the end that no one may be unjustly enriched or benefited at the expense of another. a. Delict b. Quasi-contract c. Contract d. Quasi-delict 19. Which of the following statements concerning the kinds of quasi-contract is correct? I. Negotiorum Gestio refers to the voluntary management of the property or affairs of another without the knowledge or consent of the latter. II. Il. Solutio Indebiti refers to the juridical relation which is created when something is received when there is no right to demand it and it was unduly delivered through mistake. a. b. c. d.

I only II only Both I and II Neither I nor II

20. The following are examples of quasi-contracts, except a. A person receives something when there is no right to demand it or it was unduly delivered through mistake. b. A person takes charge of the agency or management of business or property of another without authority or without consent of the latter. c. A stranger gives support to a child of another person without the knowledge of the person obliged to give support. d. A person saves the property of another person during fire, flood, storm or other calamity without the knowledge of the owner. e. A person caused injury to another person through fault of negligence.

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21. What is the nature of the responsibility or liability of two or more officious managers in a negotiorum gestio? a. Generally it shall be solidary unless the management was assumed to save the thing or business from imminent danger which will make their liability to be joint only. b. Generally it shall be joint unless the management was assumed to save the thing or business from imminent danger which will make their liability to be solidary. c. It is always solidary. d. It is always joint. 22. The officious manager in a negotiorum gestio shall be liable for any fortuitous event in any of the following instances, except a. If he undertakes risky operations which the owner was not accustomed to embark upon. b. if he has preferred his own interest to that of the owner. c. If he fails to return the property or business after demand by the owner. d. If he assumed the management in good faith. 23. In which of the following instances will negotiorum gestio arise? a. When the property or business is not neglected or abandoned. b. If in fact the manager has been tacitly authorized by the owner. c. Neither A nor B. d. Either A or B. 24. What is the nature of responsibility or liability of two or more payees in solutio indebiti when there has been payment of what is not due? a. Solidary b. Joint c. Pro-rata d. Subsidiary 25. When will a person who accepts an undue payment of a sum of money be liable for interest? a. When he receives the undue payment in bad faith. b. When he receives the undue payment in good faith. c. When he receives the undue payment, regardless of being bad or good faith. d. Under all instances. 26. When will a person, who in good faith accepts an undue payment of a thing certain or determinate, be responsible for the impairment or loss of the same or its accessories and accessions? a. He is liable only in so far as he has thereby been benefited. b. When he is not guilty of negligence. c. He is liable in any instances. d. When the reason of loss is fortuitous event. 27. It is source of an obligation that refers any act or omission punishable by law a. Crime or Delict b. Quasi-contract c. Contract d. Quasi-delict 28. Is a person criminally liable also liable to pay civil damages to a private offended party? a. Yes, as a general rule, unless the crime committed does not cause civil damages, b. Yes in all cases. c. No unless the People of the Philippines ask for damages. d. No because criminal liability means imprisonment only.

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29. What is the nature of civil liability of two or more persons (crimina) who are convicted of crime? a. Solidary b. Joint c. Pro-rata d. Subsidiary 30. Article 100 of the Revised Penal Code provides that every person criminally liable for a felony is also civilly liable for damages. Under Article 12 of the Revised Penal Code, the following persons will not be imprisoned (exempted from criminal liability) but will still be liable for civil damages (civil liability) for their acts, except a. An imbecile or insane person. b. A minor or any person under 18 years of age. c. Any person who acts under the compulsion of an irresistible force. d. Any person who acts under the impulse of an uncontrollable fear of an equal or greater injury. e. Any person who acts under self-defense or any person who acts in the performance of his official duty or any wife suffering from battered woman syndrome who killed or injured his batterer. 31. The civil liabilities arising from crimes are as follows, except a. Restitution which refers to restoration of the thing itself even though it be found in the possession of a third person who has acquired it by lawful means. b. Reparation of the damage caused which shall be determined by the Court taking into consideration of the price of the thing and its sentimental value. c. Indemnification for consequential damages which shall include not only those caused the injured party but also those suffered by his family or by a third person by reason of the crime. d. Compromise of the criminal liability. 32. What degree of evidence must be proved by the prosecution for the conviction of an accused of a crime? a. Proof beyond reasonable doubt b. Clear and convincing evidence c. Preponderance of evidence d. Substantial evidence 33. What degree of evidence must be proved by the private offended party to be entitled to civil damages arising from crime or delict? a. Proof beyond reasonable doubt b. Clear and convincing evidence c. Preponderance of evidence d. Substantial evidence 34. What degree of evidence must be proved by the plaintiff in order to recover civil damages arising contract or quasi-delict? a. Proof beyond reasonable doubt b. Clear and convincing evidence c. Preponderance of evidence d. Substantial evidence 35. In the prosecution for the crime of criminal negligence, the accused is acquitted on the ground of failure of the prosecution to prove his guilt beyond reasonable doubt. May the private offended party file another civil case based on quasi-delict? a. Yes because a single act may result to different sources of obligation and crime and quasi-delict are separate and distinct sources of civil liability but the private offended party (plaintiff) cannot recover twice civil damages for a single act since civil damages are awarded to compensate the victim for the injury caused to him but not to unjustly enrich him. b. No because the accused shall not be subject to double jeopardy. c. Yes only if there is a contract between the contending parties. d. No because the private offended party is barred by the principle of res judicata.

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36. It refers to a source of an obligation wherein a person by act or omission causes damage to another, there being fault or negligence. a. Contract b. Quasi-contract c. Quasi-delict or culpa aquiliana or torts d. Delict 37. The following are the requisites in order that civil liability for quasi-delict or torts may exist, except a. There is pre-existing relation between the offender and offended parties. b. There exists a wrongful act or omission imputable to the defendant by reason of his fault or negligence. c. There exists a damage or injury which must be proved by the person claiming recovery. d. There must be a direct causal connection or a relation of cause and effect between the fault or negligence and the damage or injury, or that the fault or negligence be the cause of the damage or injury. 38. Negligence or culpa which results to civil liability arising from quasi-delict or torts is also known as a. Culpa criminal b. Culpa aquiliana c. Culpa contractual d. Culpa liberal 39. The following are the distinctions between quasi-delict and crime or delict, except a. The right violated by a quasi-delict is a private right while the right violated by a crime is a public right. b. Every quasi-delict gives rise to liability for damages to the injured party but there are crimes from which no civil liability arises. c. Criminal liability can never be compromised except in criminal negligence but liability from quasi-delict can be compromised. d. In quasi-delict, criminal intent is not necessary, while in crime, criminal intent is necessary except in criminal negligence. e. In order to convict a person of crime, only preponderance of evidence is required but in order to prove negligence in quasi-delict, proof beyond reasonable doubt is required. 40. In case of tort, when will the plaintiff or injured party be barred or precluded from recovering damages? a. When plaintiffs own negligence was the immediate, proximate and sole cause of his injury. b. When the reason of the injury is a fortuitous event but with contributory negligence of tortfeasor. c. When plaintiffs negligence was only contributory, the immediate and proximate cause of the injury being the defendant's lack of due care. d. When the immediate and proximate cause of his injury is the negligence of the tortfeasor. 41. The obligation arising from torts or quasi-delicts is demandable not only for one's own acts or omissions, but also for those of persons for whom one is responsible. The following are the persons who are liable for the torts or quasi-delict committed by persons under their responsibility, except a. The father and, in case of his death or incapacity, the mother, are responsible for the damages caused by the minor children who live in their company. b. Guardians are liable for damages caused by the minors or incapacitated persons who are under their authority and live in their company. c. The owners and managers of an establishment or enterprise are likewise responsible for damages caused by their employees in the service of the branches in which the latter are employed or on the occasion of their functions. d. Employers shall be liable for the damages caused by their employees and household helpers acting within the scope of their assigned tasks, even though the former are not engaged in any business or industry.

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e. Teachers or heads of establishments of arts and trades shall be liable for damages caused by their pupils and students or apprentices who are within their custody. f. Boyfriend or girlfriend is liable for the quasi-delict committed by their partner during their relationship. 42. How shall persons enumerated under preceding number exempt themselves from responsibilities arising from torts committed by persons under their responsibility? a. By proving they exercise extraordinary diligence to prevent damage. b. By proving that they observed all the diligence of a good father of a family to prevent damage. c. By proving that there is no contract between the plaintiff and defendant. d. By proving that the guilt is not proven beyond reasonable doubt. 43. What is the nature of liability of two or more persons who are liable for quasi-delict or tort a.k.a. joint tortfeasors? a. Solidary b. Joint c. Pro-rata d. Proportionate 44. While trying to pass each other on a narrow bridge, a passenger bus and a private automobile collided, and two persons, A and B, were injured. A was a passenger of the bus while B was a pedestrian. The bus company was made a defendant although its employee driver was the one driving the bus and the owner-driver of the private car was also made a defendant. What can be the source of obligation of the bus company as regards to A, the passenger? a. Contract of carriage for failure to exercise extra-ordinary diligence b. Culpa aquiliana or quasi-delict if he exercised diligence of a good father of a family in selecting his employees. c. Culpa criminal or crime and considered a principal liability d. Quasi-contract 45. Using the same data in preceding number, what can be the source of obligation of the driver of passenger bus as regards to A, the passenger? a. Contract of carriage b. Quasi-contract c. Law d. Quasi-delict or crime at the option of A 46. Using the same data in preceding number, what can be the source of obligation of the bus company as regards to B, the pedestrian? a. Contract of carriage b. Culpa aquiliana if he fails to exercise the diligence of a good father of a family in selecting his employees c. Culpa criminal or crime and considered a principal liability d. Quasi-contract 47. Using the same data in preceding number, what can be the source of obligation of the bus driver as regards to B, the pedestrian? a. Contract of carriage b. Quasi-contract c. Law d. Quasi-delict or crime at the option of B 48. Using the same data in preceding number, what can be the source of obligation of the ownerdriver of private car as regards to A, the passenger? a. Contract of carriage b. Quasi-contract c. Law d. Quasi-delict or crime at the option of A

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49. Using the same data in preceding number, what can be the source of obligation of the ownerdriver of private car as regards to B, the pedestrian? a. Contract of carriage b. Quasi-contract c. Law d. Quasi-delict or crime at the option of B 50. Which of the following statements concerning the obligation to deliver a thing is correct? I. A generic or indeterminate thing is only indicated by its kind, without being designated and distinguished from others of the same kind. II. A determinate or specific thing or delimited gene...