Reviewer in Obligations and Contracts PDF

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINESSta. Rosa CampusMidterm ReviewerInstructions: This reviewer belongs to Dr. Daniel E. Orense, your professor. It will serve as your review material for this midterm exams. It is neither transferrable to your classmates and friends nor that you can have it answ...

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Sta. Rosa Campus

Midterm Reviewer Instructions: This reviewer belongs to Dr. Daniel E. Orense, your professor. It will serve as your review material for this midterm exams. It is neither transferrable to your classmates and friends nor that you can have it answered by them. Copying & sharing answers with your classmates is strictly not allowed. Remember that when you take every exam, it is as if you are taking board exam. 1. Statement I: The nullity of the principal obligation carries with it that of the penal clause. Statement II: Payment means not only the delivery of money but also the performance, in any other manner, of an obligation. a. only statement I is true; ; b. only statement II is true; d. both statements are false. 2. This is adjudicated in order that the right of the plaintiff which has been violated or invaded by the defendant may be vindicated or recognized: a. moral damages; c. temperate damages; ; d. actual damages. 3. R borrowed P1 million from O and F who acted as solidary creditors. When the loan matured, O wrote a letter to R, demanding payment of the loan directly to him. Before R could comply, F went to see him personally to collect and he paid him. Did R make a valid payment? a. no, since R should have split the payment between O and F; ; c. yes, since the payment covers the whole obligation; d. yes, since F was a solidary creditor, payment to him extinguished the obligation. 4. R and C both undertook a contract to deliver to S in Manila a boat docked in Subic. Before they could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall not exempt R and C from their obligation. Owing to the loss of the motor boat, such obligation is deemed converted into one of indemnity for damages. Is the liability of R and C joint or solidary? a. neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are entitled; b. solidary or joint upon the discretion of S; c. solidary since R and C failed to perform their obligation to deliver the motor boat; it joint. 5. T is a lessee of X. Under the lease contract, T must pay the monthly rental of P25,000 to X at the latter’s office within the first 5 days of the month. On the sixth month of the lease, T went to X’s office to pay the rental but he was told by G, an employee of X, that the latter was confined at the hospital. G told T that he could entrust payment to him. H, a son of X, who happened to be around, however, demanded that T must pay to him claiming that as X’s son, he was the one authorized to receive the payment. Given where you do not know to whom you will give your payment, which of the following modes of payment would you avail yourself of if you were T? a. dacion en pago; c. payment by cession; b. consignation; .

Page |2 6. If X promises to give Y P10,000 if the latter will not harm Z, what is the legal consequence? a. the obligation is void; b. the obligation becomes pure; c. the obligation is subject to impossible condition; . 7. The following are essential elements of a valid object or prestation, except: a. must be determinate or specific, or at least determinable according to preestablished criteria or elements; b. must be physically or legally possible; c. must have an economic value or be capable of pecuniary estimation or possible equivalent in money; . 8. An obligation of spouses to render mutual support arises from: a. delict or crime; c. law; ; d. quasi-contract. 9. What is the effect of breach of joint indivisible obligation by one of the obligors? a. it becomes due and demandable; ; c. the creditor may sue for specific performance and damages; d. the other obligors are compelled to answer for the liability of the defaulting obligor. 10. An obligation with period or term, as distinguished from a conditional obligation: ; b. it exerts an influence upon the very existence of the obligation; c. it has retroactive effects; d. if left exclusively to the will of the debtor, the existence of the obligation is affected. 11. Mario binds himself to give a car to his sister if she becomes a certified public accountant before year 2018, the obligation is subject to: a. positive condition; ; b. negative condition; d. divisible condition. 12. If the debtor promises to pay a previous loan of P10,000.00 to the creditor on or before November 2019 provided that he (debtor) is in Manila, the obligation is: a. subject to potestative condition and void; ; c. subject to casual condition and valid; d. subject to mixed condition and valid. 13. A owes B P100,000. With consent of both, C pays B P50,000. Now B and C are the creditors of A to the amount of P50,000 each. Suppose A has only P50,000. Which is correct? a. ; b. B and C should divide the P50,000 equally; c. A may choose whom to pay; d. C should be preferred. 14. A borrowed P1 million from a bank, secured by a mortgage on his land. Without his consent, his friend B paid the whole loan. Since A benefited from the payment, can B compel the bank to subrogate him in its right as mortgagee of A’s land? a. no, but the bank can foreclose and pay B back; no, since B paid for A’s loan without his approval; c. yes, since a change of creditor took place by novation with the bank’s consent; d. yes, since it is but right that B be able to get back his money and, if not, to foreclose the mortgage in the manner of the bank.

Page |3 15. A owed B P1 million due on October 1, 2018 but failed to pay her on due date. B sent a demand letter to A giving her 5 days from receipt within which to pay. Two days after receipt of the letter, A personally offered to pay B in manager’s check but the latter refused to accept the same. The 5 days lapsed. May A’s obligation be considered extinguished? a. yes, since B’s refusal of the manager’s check, which is presumed funded, amounts to a satisfaction of the obligation; b. yes, since A tendered payment of the full amount due; c. ; d. no, since a manager’s check is not considered legal tender in the Philippines. 16. The principal remedy of the creditor to protect his credit: a. to exhaust all properties in the possession of the debtor; b. to be subrogated to all of the rights and actions of the debtor save those which are inherent in his person; c. to impugn all acts which the debtor may have done to defraud him; ; e. none of the above. 17. Generally, tender of payment alone without consignation cannot discharge the obligation, however, in which of the following instances that consignation alone extinguishes an obligation? a. when the creditor is absent or unknown, or does not appear at the place of payment; b. when the creditor is incapacitated to receive the payment, or without just cause refuses to give a receipt; c. when two or more persons claim the same right to collect; ; e. none of the above. 18. If a creditor’s right of action to collect based on a written contract has prescribed after 10 years from the time the action has accrued, the civil obligation of the debtor is converted into: a. moral obligation; c. unilateral obligation; b. natural obligation; d. . 19. The following obligations are either joint or solidary liability: I. Liability of the principal and the agent when the former allowed the agent to act as though he had full powers. II. Liability of two or more persons who have appointed an agent for a common transaction or undertaking. III. Liability of two or more bailees to whom a thing is loaned in the same contract. IV. The responsibility of two or more agents who are appointed simultaneously by the principal. V. Responsibility of two or more officious managers. a. the liability under I, II, III, IV and V are solidary; b. the liability under II and IV are joint; c. the liability under I, II, III and IV are solidary; . 20. D borrowed from C P1,000,000 mortgaging in favor of the latter his house and lot. Said obligation is due December 15, 2018. On July 20, 2017, the house was hit by a lightning and was destroyed. In this case: a. C can validly demand payment from D on July 20, 2017 because the latter loses the right to make use of the period upon impairment of the collateral; b. C cannot collect on July 20, 2017 because in the nature of an obligation with a period, the debt can only become demandable upon the arrival of the period;

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; d. the obligation of D to C is extinguished because of the loss of the collateral through a fortuitous event. 21. Which of the following is not an element of Compensation? a. debts to be compensated are due and demandable; ; c. there are two or more debts of the same kind; d. there are two persons who are creditors and debtors of each other. 22. Payment by third person is presumed for the benefit of the creditor in the following cases, except: a. ratification; c. estoppel; b. subrogation; . 23. An example of indivisible obligation: a. the obligation is susceptible of partial performance; b. execution of a certain number of days of work; c. accomplishment of work measured by metrical units; o . 24. An obligation where the prestation or object cannot be performed by parts without affecting or destroying its essence or substance: a. ; c. uniform solidarity; b. divisible; d. varied solidarity. 25. In alternative obligations, what is the remedy of the debtor if through the fault of the creditor he (debtor) cannot make a choice according to the terms of the obligation? a. comply the obligation with the least expense; b. perform the obligation which is practicable; ; d. the debtor may ask the court to make the choice. 26. Effect of fulfillment of a resolutory condition in an obligation to give: ; b. acquisition of real right; c. demandability of expectant right; d. all of the above; e. none of the above. 27. D owes C P150,000 payable on January 5, 2018. To fulfill the obligation, D with the consent of C, delivers his only car on January 4, 2018 worth 140,000 at around 8:00pm to C’s residence. C accepted the car but the same was destroyed by lightning after one hour upon delivery. In this case: a. D still owes C the amount of P150,000; b. D is no longer liable to C because the obligation is extinguished by fortuitous event; c. ; d. D still owes C P140,000 for the amount of the car loss by lightning. 28. A, B and C solidarily owe X P300,000. X remitted C’s share. A, therefore, paid later only P200,000. Assuming that B is insolvent: a. A can recover reimbursement from C amounting to P50,000; b. A can compel B to pay him P100,000; c. A can recover reimbursement from C amounting to P100,000; .

Page |5 29. B borrowed from ABC Bank P2,000,000 payable at the end of 5 years. Before maturity, an extraordinary inflation supervened causing the value of the debt to fall to P800,000 on the date of maturity. On due date, B must pay ABC Bank: a. P2,000,000; c. P5,000,000; P800,000; d. P20,000,000. 30. D borrowed from C P100,000 with a penalty of 20% if not paid on time. On due date, D was able to pay C the borrowed amount. How much should D pay C? ; c. P100,000 + 20% + interest; b. P100,000 + 20%; d. P100,000 + 20% + interest + damages. 31. On December 25, 2018, C, the owner of a sarisari store, purchased several bags of “Yummy” candy worth P1,000.00 from D, an authorized dealer of the product. C tendered her payment to D consisting of 1000 pieces of P0.25 coins. In this case: a. D cannot refuse to accept the payment because what C was offering as payment is legal tender; b. D may refuse to accept the payment and demand that he be paid in bills; c. C may consign the payment in court if D refuses to accept it and his obligation is automatically extinguished; . 32. A, B and C are jointly and severally liable to D amounting to P900,000. D allows C an extension of two years within which to pay his portion of the indebtedness. In this case: a. D can compel A or B or C to pay him P600,000; b. D can compel A or B to pay him the entire P900,000; c. , ; d. D can compel only A or B to pay him P600,000. 33. An obligation to give a thing may be either determinate or generic. It is generic when the object is: a. particularly designated; ; c. a concrete thing; d. indicated by its own individuality. 34. Three of the following are requisites of payment in cession. Which is the exception? a. complete or partial insolvency; . ; c. more than one debt; d. abandonment of all debtor’s property not exempt from execution. 35. On May 1, 2018, D executed a written undertaking obliging himself to deliver 100 sacks of rice to C on May 31, 2018. On May 28, 2018, C demanded the delivery of 100 sacks of rice from D but D did not comply. The following day, a fire of undetermined origin destroyed D’s warehouse together with about 500 sacks of rice stored therein and from which D intended to get 100 sacks of rice for delivery to C. a. D’s obligation to deliver 100 sacks of rice to C is extinguished, the cause of the loss being a fortuitous event; b. D’s obligation to deliver 100 sacks of rice t ; c. D’s obligation to deliver 100 sacks of rice to C is not extinguished because D was in default; d. D’s obligation is to pay damages because he was in default....