Law on Obligations Summary Quiz PDF

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Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of: A. Both the creditor and the debtor B. The creditor C. The debtor D. The third party Ans: A 2 act of liberality whereby a creditor condones the obligation of the debtor A. Confusion B. Compe...

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1. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of: A. Both the creditor and the debtor B. The creditor C. The debtor D. The third party Ans: A 2.An act of liberality whereby a creditor condones the obligation of the debtor A. Confusion B. Compensation C. Remission D. Novation Ans: C 3.The thing deteriorates pending the fulfilment of the suspensive condition without the fault of the debtor, the impairment is: A. To be borne by the party who cause the deterioration B. To be borne partly by the debtor and partly by the creditor C. To be borne by the debtor D. To be borne by the creditor Ans: D 4. A owes B P10, 000. With the consent of both, C pays B P5, 000. Now B and C are the creditors of A to the amount of P5, 000 each. Suppose A has only P5, 000. Which is correct? A. B and C should divide the P5, 000 equally B. C should be preferred C. A may chose who to pay D. B should be preferred Ans: D 5. An obligation where only the presentation has been agreed upon but the debtor may render another in substitution is: A. Conjoint obligation B. Facultative obligation C. Simple obligation D. Alternative obligation Ans: B 6.X, Y and Z are solidarily liable to A for P30, 000 which matures on July 1, 2018. On May 1, 2018, X paid A fro the whole amount of the debt. If on December 1, 2018, X will be reimbursed by Y, the latter will be liable for: A. P10, 000 with interest from July 1, 2018 to December 1, 2018 B.P10, 000 without interest C. P10, 000 with interest from May 1, 2018 to July 1, 2018 D. P10, 000 with interest from may 1, 2018 to December 1, 2018 Ans: A 7.A thing is not deemed lost when it: A. Perishes

B. Disappears in such a way its existence is unknown or it cannot be recovered C. Goes out of commerce D. Deteriorates Ans: D 8.A mango tree in the land of O is reclining towards the road. All of a sudden, without a storm or an earthquake or even a strong wind, the tree falls hitting a car belonging to Y causing P20, 000 damages. The liability of O to X arises from: A. Law B. Quasi-contracts C. Contracts D. Quasi-delict Ans: D 9.A, B and C solidary debtors owe soidary creditors X and Y P30, 000. X remitted the entire obligation in favour of A. The effect is: A. The obligation is not extinguished until A collects from B and C B. The obligation is not yet extinguished until Y is paid by X his share of credit C. A cannot recover from B and C because remission in his favour extend to the benefit of B and C D. A can recover from B and C their respective share of the debt Ans: C 10.A signs a promissory note and binds himself to pay X P100, 000 plus 15% per annum interest on June 30, 2018. A. Before June 30, 2018, X can demand payment B. If on June 30, 2018 A is paying X, the latter can refuse the payment C. A can compel creditor X to accept payment before June 30, 2018 D. Because the period is for the benefit of the debtor and creditor, X can refuse any tendered payment before June 30, 2018 Ans: D 11.The following are the requisites of an obligation, except: A. passive subject, debtor, or obligor B. Active subject, creditor, or oblige C. Efficient cause D. Presentation Ans: D 12.The debtor shall lose the right to make use of the period in the following cases except: A. When he becomes insolvent B. When he violates any undertaking in consideration of which the creditor agreed to the period C. When the debtor attempts to abscond D. When he does not furnish any guarantee or security to the creditor Ans: D 13.An obligation ceases to be alternative and becomes a simple obligation in the following cases, except: A. When the debtor has communicated his choice to the creditor. B. When the right of choice has been expressly granted to the creditor and his choice has been communicated to the debtor. C. When among the several prestations that are due only one is practicable.

D. When several prestations are due but the performance of one is enough to extinguish the obligation Ans: D 14.D is obliged to give C a specific watch, a specific ring, or a specific bracelet. The parties agreed that C will have the right to choose the thing which will be given to him. Before C could make his choice, the watch and the ring are lost through D’s fault, successively. What is the right of C? A. C may choose the delivery to him of the bracelet, or the price of the watch or the price of the ring plus damages. B. C cannot choose the price of the watch or the price of the ring because the said objects have already been lost. C. C can only choose to have the bracelet because anyway, D can still perform his obligation. D. C can only choose to have the delivery of the bracelet or the price of the ring which was the last item that was lost plus damages. Ans: A 15.D obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as a substitute. Which of the following is true? A. If the ring is lost through a fortuitous event before substitution, the obligation is extinguished. B. If the bracelet is lost through a fortuitous event before the substitution, the obligation is extinguished. C. If the ring is lost through a fortuitous event after the substitution, the obligation is extinguished. D. If the ring is lost through the debtor’s fault after substitution, the debtor shall pay damages. Ans: A 16.It refers to a joint obligation: A. One in which each debtor is liable for the entire obligation and each creditor is entitled to demand the whole obligation. B. One in which either one of the parties is indispensable and the other is not necessary. C. One in which the obligation of one is a resolutory condition of the other, the non-fulfilment of which entitles the other party to rescind the contract. D. One in which each of the debtors is liable only for a proportionate part of the debt and each credit. Ans:D 17.D borrowed P50,000 from C. C dies before he has collected the debt leaving S, his son as heir. Which from the following statements is correct? A. S can collect from D although D and C did not agree that the right to the debt will pass on to the heirs of C. B. S cannot collect because the credit right is personal to C. C. S can collect only if D and C agreed that the right to the debt will pass on the heirs of C. D. S cannot collect because the law prohibits the transmission of the credit right. Ans. A 18.A, B, C, and D, solidary debtors, are obliged to give V,W,X,Y and Z, solidary creditors, P20,000. A. V may collect from D P20,000. B. V may collect from D P4,000. C. V may collect from D P5,000. D. V may collect from D1,000. Ans. A

19.When the period is ‘on or before a date’, the debtor has the benefit of the period. This benefit is lost and the obligation becomes demandable when: A. The debtor attempts to abscond. B. After contracting the obligation, the creditor suspects the debtor of becoming insolvent. C. The guarantee given by the debtor is not acceptable to the creditor. D. Demand by creditor could be useless. Ans: A 20.Unless the law or the stipulation of the parties requires another standard of care, the obligation to give a thing carries with it the obligation to take care of it with: A. Extra-ordinary diligence B. Degree of care agreed upon the parties C. Diligence of a good father of a family D. Diligence of a good family of a father. Ans. C 21.One of the following shall produce the effect of payment of debts: A. Delivery of check. B. Tender of Central Bank notes C. Delivery of promissory note D. Dacion en pago Ans. D 22.If the creditor to whom tender of payment has been made refuses without just cause to accept it, the debtor shall be released from responsibility by A. Assignment of property B. Consignation of the thing or sum due C. Adjudication or pacion en pago Ans. B 23.A excutes a promissory note in favour B who subsequently indorsed in favour of A. The obligation to pay the promissory note is thereby extinguished because there is? A. Confusion or merger B. Novation C. Remission D. Compensation Ans. A 24.This is a promissory note: “I promise to pay A,B, and C the sum of P18,000 “(sgd) D,E and F. A. F is obliged to pay P6,000 B. F is obliged to pay P2,000 C. F is obliged to pay 12,000 D. F is obliged to pay 18,000 Ans. A 25. If the obligor binds himself to perform his obligations as soon as “he shall have obtained a loan” from a certain bank, this obligation is: A. Wtih a term B. Conditional C. Suspensive

D, Resolutory Ans. B 26. It presupposes not only that the obligor is able , ready and willing but more so, in the act of performing his obligations. A. Promissory note B. Tender of payment C. Bill of exchange D. Obligation to sell Ans. B 27. Which of the following is not considered as quasi-contract? A. Solution indebti B. When the third person without the knowledge of the debtor, pays the debt C. Negotiorum gestio D. Reimbursement due to the person who saved the property during fire or storm without the knowledge of the owner 28. In tender and consignation, if after consignation is made, the creditor allows the debtor to withdraw the thing deposited in court, which of the following is incorrect? A. Co-debtors, guarantors and securities are released from the obligation unless they consented. B. The obligation remains to subset C. The obligation is extinguished D. None of the above Ans. C 29. D owes C P10,000 payable on December 25, 2018. Later D forced C to sign a promissory note for P10,000 payable on December 25, 2018. If all other requisites of compensation are present, are both debts extinguished? A. Yes, under legal compensation B. No, B’s consent was obtained by force C. Yes, with the approval of the court D. Answer not given Ans. A 30. X has been missing for sometime leaving no one to manage his properties. A and B jointly took charge of the management thereof. However, due to the fault of A, the properties of X were damaged. The liability therefore to X damage shall be: A. Only A shall be liable B. Both shall be jointly liable C. Both shall be solidarily liable D. They are not liable since X is at fault for having abandoned his properties Ans. C 31. X by mistake delivered to A and B a sum of money which should have been delivered to C and D. X now demand the return of the same from A and B. Liability of the latter for the sum of money to which they are not entitled shall be: A. A and B shall be liable solidarily B. A and B shall be liable jointly C. They are not liable for having received the money is good faith. D. X has no right to recover as he was negligent in the delivery of the money.

Ans. A 32. The obligation of mutual support for each other of husband and wife arises from: A. Law B. Contract C. Quasi-delicit D. Quasi-contract Ans. A 33. In three of the following instances, the officious manager may still be held liable for fortuitous events. Which is the exception? A. If he assumed the management in bad faith. B. If he undertakes risky operation like the owner was accustomed to do C. If he is manifestly unfit to carry on the management D. If he has preffered his own interest to that of the owners Ans. B 34. Marilou who was entrusted by her principal with a diamond pendant for sale, was robbed one evening and lost the pendant. Is Marilou excuse from civil liability attendant to the loss of the pendant even if the robber is not yet apprehended? A. No, because the agent acted as agent and had possession of the pendant B. No, because the agent failed to exercise due diligence in the safekeeping of the diamond pendant C. Yes, due to fortuitous event D. Answer not given Ans. C 35. One is not a requisite needed in order that obligation shall be extinguished by loss or destruction of the thing due: A. When the thing is lost without the fault of the debtor B. When the thing lost is generic C. When the thing is lost before the debtor has incurred delay D. When the thing lost in specific Ans. B 36. Every obligation whose performance does not depend upon future or uncertain event, or upon a past unknown to the parties is demandable at once. This refers to: A. Divisible and Indivisible Obligations B. Joint and Solidary Obligations C. Obligation with a Period D. Pure and Conditional Obligations Ans.D 37. To have the effect of payment debts in payment in money should be paid: A. In currency which is legal tender in the Philippines. B. By the delivery of promissory notes payable to order C. By the delivery of checks or bills of exchange D. By all of the above Ans.A 38. Which of the following is not an element of legal compensation? A. Debts to be compensated are due and demandable.

B. There is a controversy or adverse claim over any debts to be compensated C. There are 2 or more debts of the same kind D. There are 2 persons who are creditors and debtors of each other Ans. B 39. Rescission of contract can take place in this case: A. When the things which are the object of the contract are legally in the possession of third person who acted in bad faith B. When he who demands rescissions can return whatever he may obliged to restore. C. When the party seeking rescission can perform only as to part and rescind the reminder D. When seller cannot return the instalments paid to him by the buyer Ans.B 40. One is not a requisite in order that obligation shall be extinguished by loss or destruction of the thing due: A. When the thing is lost without the fault of the debtor B. When thing loss is generic C. When the thing before the debtor has incurred in delay D. When the thins lost is specific Ans. B 41. Change of persons or objects: A. Confusion B. Novation C. Solution indebiti D. Negotiorum gestio Ans.B 42. A solidary obligation is one in which each of the debtors is liable for the entire obligation or debt, and each of the creditor is entitled to the entire credit. Obligations shall also be considered solidary under the following three exceptions. Which does not belong to the exception? a. When solidary is expressly stipulated in the obligation b. When the prestation is indivisible and there are two or more debtors and creditors c. When the law expressly provides solidary d. When the nature of the obligation requires solidarity. Ans. B 43. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-debtors. a. If such payment was made after the obligation is due. b. If such payment was made after the obligation has prescribed or become illegal. c. If such payment was made in compliance with the demand to him by all creditors. d. If such payment was made after the obligation has become due and demandable and notice of payment was made to him. Ans.B 44. A, B and C secured a loan from X. The promissory note which evidences the obligation states: “I promise to pay” and signed by A, B and C. The obligation is: a. Joint b.Solidary c. Divisible

d. Indivisible Ans.B 45. Consignation is a mode of payment which extinguishes an obligation. Which of the following is not a requisite for consignation? a. Actual consignation with the proper judicial authorities b. Existence of a valid debt c. There must be prior notice of consignation to persons interested in the fulfilment of the obligation d. The notice must be publish in a newspaper of general circulation for consecutive weeks. Ans. D 46. The creditor shall have a right to indemnity for damages when through the fault of the debtor, all things which are alternatively the object of the obligation have been lost or compliance of the obligation has become impossible. The indemnity shall be fixed on the basis of: a. The value of the least expensive things b. The value of the most expensive things c. The value of the last thing which disappeared d. The value of the first thing which disappeared Ans. C 47. A is indebted to B for P20,000. X is the guarantor of A. B is also indebted to A for P8,000. How much will X be liable as a guarantor if B sues A and A cannot pay? a. P12,000 b. P20,000 c. P8,000 d. X has no liability Ans. A 48. On October 4, 2018, A is indebted to B for P50,000 for a 20-day period. A proposed to B that X will pay A’s debt and that A will be free from all liabilities. B and X agreed to the proposal. On October 25, 2018, X became insolvent. At the time of delegation, X was already insolvent but this was not known to A. The insolvency is not of public knowledge. So B sues A on the ground that it was A who made the proposal that A guaranteed X’s solvency. Decide. a. A is liable because he is presumed to have guaranteed X’s solvency. b. A is not liable because A does not know the insolvency of X at the time of delegation and neither was the insolvency of public knowledge. c. A is liable because he did not exercise due diligence in determining the insolvency of X. d. A is liable because X agree to the proposal to make himself solidarily liable for the obligation. Ans.B 49. X and Y are solidary debtors of A, B, C and D, joint creditors to the amount of P8,000. How much can A collect from X? a. A could recover P4,000 from X. A, in turn, has to give B, C, and D P1,000 each b. A could recover P2,000 only from X c. A could recover P1,000 only from X d. A could recover P8,000 from X, in turn,has to give to B, C and D Ans.B 50. Mr. AB owes Mr. CD P150,000 due on August 31, 2018 Mr. AB executed a mortgage in favour of Mr. CD on Mr. AB’s building to guaranty the obligation. On August 10, 2018, the mortgaged building

was totally lost due to a strong typhoon. On august 12, 2018 Mr. CD demanded payment from Mr. AB. Is Mr. CD’s demand valid? a. No, the obligation is with a definite period, thus the creditor cannot demand fulfilment of the obligation as such would be prejudicial to the rights of the debtor. b. No, the obligation is distinguished because the obligation is lost due to a fortuitous event. c. Yes, the debt becomes due at once because the guaranty was lost even though a fortuitous event unless the debtor can mortgage another property that is actually satisfactory. d. Yes, the debt becomes due at once because the tenor benefit is given solely to the creditor thereby giving the creditor the right to demand performance even before the due date. Ans. C 51. Mr. ABC is obliged to give Mr. XYZ his only car on July 15, 2018 Mr. ABC did not deliver on July 15, 2018. On July 20, 2018, an earthquake destroyed the building where the car was garaged and the car was destroyed. Is Mr. ABC still liable? a. No, considering that no demand to deliver was made by Mr. XYZ and the specific thing was lost due to fortuitous event, the obligation is extinguished. b. No, the obligation is extinguished even if the debtor is already in default, because the debtor can plead impossibility of performance. c. Yes, Mr. ABC is already in legal delay, thus the obligation to deliver the lost specific thing is converted into monetary claim for damages. d. Yes, the creditor can instead demand for a substitute equivalent in value from the debtor 52. A and B are solidary debtors of X, Y and Z, joint creditors to the amount of P15,000. How mkuch can Z collect from B? a. Z could recover P 7,500 from B. b. Z could recover P 5,000 from B c. Z could recover P 5,000 from B. Z turn has to give X and Y P 5,000 each d. Z could recover P 5,000 from B. B in turn can collect from A the amount of P 7, 500 Ans. B 53. Mr. S executed a first mortgage of his house in favour of Mr. D on May 15, 2017 to guaranty a mortgage loan of P200, 000 due for payment on May 15, 2018. On September 16, 2017 the house was completely destroyed by a typhoon. On September 18, 2017, Mr. D demanded payment of the loan from Mr. S. Is Mr. D’s demand for payment valid? a. No, the obligation is one with a definite period, so the creditor cannot demand payment until the definite due date arrives. b. No, the obligation is extinguished because the object of the obligation is lost due to fortuitous event. c. Yes, the obligation becomes due at once because the tenor benefit is given solely to the creditor thereby giving the creditor the right to demand performance even before the due date is stipulated. d. Yes the obligation becomes due at once because the guaranty was lost even through a fortuitous event unless the debtor can mortgage another property that is equally satisfactory. Ans. D 54. A, B and C borrowed P 24, 000 from Y and Z and signed promissory note dated January 15, 2018 and due date within 6 months. How much can Y...