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BUSINESS LAW
QUIZ ON OBLIGATION –PART I
1. Whenever in an obligation’s designated, it is presumed to have been established for the benefit of:
a. Both the creditor and debtor c. The debtor
b. The creditor d. The third party
2. A owes B P10, 000. 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, 0000 equally c.A may choose whom to pay b .C should be
preferred d.B Should be preferred
3. X is under obligation to deliver Y’s car to the latter. However before delivery Z destroys the car. Which one of the Following is correct?
a. X’s obligation to give the car to Y extinguished
b. X is allowed to recover from Z
c. Y has the right to bring an action against Z
d. X is not obliged to give Y an equivalent value of the car
4. XYZ are solidarily liable to A for P30, 000 which matures on July 1, 2001.On May 1, 2001, X paid A for the whole amount of debt. If on
December 1, 2001, X will be reimbursed by Y, the latter will liable for: a. P10, 000 with the interest from July 1, 2001 to December 1,
2001
b. P10, 000 without interest
c. P10, 000 with interest from May 1, 2001 to July 1, 2001
d. P10, 000 with interest from May 1, 2001 to December 1, 2001
5. A, B and C owe solidarily creditors X and Y P30, 000.X remitted the entire obligation in favor of A. The effect is:
a. The obligation is not extinguished until a collect from B and C
b. The obligation is not extinguished until Y is paid by X his share of the credit
c. A cannot recover from B and C because remission in his favor extend to the benefit of B and C
d. a can recover from B and C their respective share of the debt
6. When A voluntarily takes charge of the neglected business of B without the latter’s authority wherereimbursement must be made for
necessary and useful expense, there is a:
a. Quasi delict c. Negotiorum Gestio
b. Quasi Contract d. Solutio Indebiti
7. When the debtor binds himself to pay when his means will permit him to do so, the obligation is:
a. Conditional c.Simple
b. Pure d.With a period
8. X and Y are solidary debtors of A, B, C and D, joint creditors to the amount of 8, 0000.How much can A collectfrom X?
a. A could recover 8,000 from X. A, in turn has to give B, C and D 2,000 each
b. A could recover 4,000 only from X.
c. A could recover 2,000 only from X.
d. A could recover 8,000 from X. A, in turn does not have to give B, C and D 2,000 each
9. A owes B 150,000 due on August 31, 2000. A executed a mortgage in favor of B on A’s building to guaranty theobligation.
On August 10, 2000, the mortgaged building was totally lost due to an earthquake .On August 12, 2000, B demanded payment from A. Is
B’s demand valid?
a. No. The obligation is one with define period, thus the creditor cannot demand fulfillment of the obligationbefore it
is due.
b. No. The mortgage was extinguished because the object of the contract was lost through a fortuitous event.
C.Yes.The debt becomes due at once because the guarantee was lost although through a fortuitous event, unless the debtor can
mortgage another property that is equally satisfactory.
d.Yes.The debts becomes due at once because the periods benefits is given solely to the creditor thereby giving the creditor the right to
demand performance even before the due date.
10. X is obliged to give Y a specific car in July 15, 2000. X did not deliver the car on July 15, 2000. On July 20, 2000, an earthquake destroyed
the building where the car parked and the car was destroyed .Is X still liable?
a. Considering that no demand to deliver was made by Y and the specific thing was lost due to fortuitous event, hence the obligation is
extinguished.
b.No. The obligation is extinguished, even if the debtor
c. Yes X is already in legal delay, thus obligation to deliver the lost specified thing is converted into monetary claim for
damages.
d. Yes. The creditor instead demand for a substitute of equivalent value from the debtor
11. In the three (3) of the following cases payment by the debtor is not recoverable .Which is the exception?
a. The obligation was not yet due and demandable but debtor believed it was already due and demandable
b.The payment is only for interest and credited to the proper period
c. The advance payment were made by both parties reciprocally
d. The debt was aware of the period
12. C is the creditor of D in the amount of P50, 000. G is the guarantor of D. D paid C partially with P 20,000. A notknowing
The partial payment of D and against the will of D, paid C the amount of P50, 000 .What is the effect of this payment in
the obligation?
a. The obligation is extinguished. A cannot recover any amount from D, But A can demand reimbursement fromG the
amount of P50, 000
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b. The obligation is extinguished. A can demand P30, 000 from D because this amount benefited D or A havingbeen
subrogated into the rights of C, can proceed against G.
c. The obligation is not extinguished. A’s payment being against the will D does not extinguish the obligation
d. The obligation is extinguished. A can demand P30, 000 from D, but if D cannot pay, A cannot ordinarily proceed against
guarantor G because A is not entitled to subrogation
13. This is payment in kind:
a. Consignation c. Dation in payment
b. Payment by cession d. Application for payment
14. A, B, C and D are joint creditors of E and F, solidary debtors in the amount of P40, 000.00.How much can A, Band
C collects from E?
a. A, B, and C could collect P20, 000.00 from E
b. A, B, and C could collect P30, 000.00 from E
c. A, B, and C could collect all the P40, 000.00 from E
d. A, B, and C could collect P20, 000.00 from E and P10, 000 from F.
15.A obliged himself to pay X 10,000 in 30 days plus a penalty of 20,000 if he fails to pay the obligation in due time.
A failed to pay the obligation in 30 days. X can demand from A. a. The principal
of P100, 000 plus P20, 000 penalty
b. The principal of P100, 000 plus P20, 000 penalty, plus legal interest
c. The principal of P100, 000 plus P20, 000 plus legal interest
d. The principal of P100, 000 plus P20, 000 penalty, plus legal interest, plus damages
16. A signs a promissory note and binds himself to pay X P100, 000 plus 15% per annum interest on June 30,2000. a. Before June 30, 2000,
X can demand payment
b. If on June 30, 2000 A is paying X the latter refuse the payment
c. A compel creditor X to accept payment before June 30, 2000
d. Because the period is for the benefit of the debtor and creditor, X can refuse any tendered payment before June 30, 2000
17. A owes X P50, 000 payable on or before June 30, 2000. S who is not a party to the contract and without consent and against the will of
A paid X the P50, 000 on April 1, 2000 when the prevailing rate of interest was 12% per annum
a. S can ask reimbursement from A in the amount of P50, 000 plus 12% interest from April 1, to June 30, 2000.
b. S cans reimbursement from A in the amount of P50, 000
c. S cannot ask reimbursement from A because the payment by S without the consent and against the will of A.
d. S can ask refund from X because the payment by S was against the will of A.
18. When the obligation is extinguished because of the passage of time, this is:
a. fulfillment of resolutory c. prescription
b. arrival of resolutory period d. rescission
19. When the debtor abandons or transfers all his properties to his creditors so that the creditors may sell theproperties
and out of the net proceeds the creditors recover their claims, this is called a. dacion en pago
c. payment by cession
b. tender payment and consignation d. remission
20. When the period is “on or before a date”, the debtor has the benefit of the period. This benefit is lost and theobligation
becomes demandable when
a. the debtor attempts to ascond
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
21. Unless the law or stipulation of the parties requires another standard care, the obligation to give a thing carrieswith the
Obligation to take care with:
a. Extra-ordinary diligence c. diligence of a good father of a family
b.degree of care agreed upon by the party’s d. diligence of a good family of a father
22. A entered into a contract with B by which A promised to deliver at price stipulated in the contract. Such deliveryis
to made on February 14, 2001 with penalty in case of default. In this case, no further demand by B on A is necessary to
consider A in delay because:
a. time is of the essence of the contract c. the demand would unless
b.The obligation is expressly so provides d. answer not given
23. One of the following shall produced effect of payment of debts
a. delivery of check c. delivery of a promissory note
b.tender of Central Bank notes d. dacion en pago
24. If the creditor to who tender of payment has been made refuses without just cause to accept it, debtor shall be released from
responsibility by:
a. assignment of property c. adjudication or pacion en pago
b. consignation of the thing or sum due d. condonation
a.
1. X issued a promissory note to A amounting to Php 10,000.00. A purchased a computer from B and he indorsedthe
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note to B. B indorsed the promissory note to C in payment of his loan .C indorsed the said promissory note to X as payment for the repair
of his car .The obligation of X in this case is extinguished by: a. novation c. confusion or merger of rights
b. compensation or merger of rights d. condonation or remission of rights
2. C bought only the car of D on February 15, 2002 and D agreed to deliver it to C on April 30,2002. They did notagree on the place of
delivery .Where is the place of delivery?
a. domicile of the debtor c. where is the car on April 30,2002
b. where is the car on February 15,2002 d. domicile of the creditor
3. D has an obligation to deliver his dog to C on October 16, 2001. On October 10, 2001, the said dog gave birth toseven
puppies. On October 16, 2001, D failed to deliver the said dog .Who shall be the owner of the dog on October 16, 2001?
a. C because that it the agreed date of delivery
b.D because the dog is still in his possession;
c.C because he has the right to demand its delivery
d. D because the delivery of the dog is dependent upon his will
4. When the obligor binds himself to pay when his means permit him to do so, the obligation is:
a. conditional b. facultative c. pure d. with a period
19.A obtained a loan from B in the amount of Php 10,000.00 payable on December 31,2002 plus 10% interest. A won in the
lotto and on March 30, 2002 he offered to pay his loan to B plus Php1,000.00 as interest but B refused to accept his payment
.Which of the following statement is correct?
a. A can file a consignation in court because B refused to accept his payment without justifiable cause.
b. B can compelled to accept the payment if the interest will be increased
c. B must accept the payment because it is complete
d. A cannot compel to B to accept his payment because the loan is not yet due.
20. D has the obligation to give a two-year black male dog to C on April 30,2002.On April 2,2002, all of the dogs of
D
were hit by lightning and they all died. Therefore:
a. The obligation of D to C is extinguished c. C can only demand for damages from D
b. D must still gave the two year old black male dog to C. d. C can demand for the dog plus damages
21. In alternative obligation, the right of choice belongs to:
a. The creditor c. Both creditor and debtor
b. The debtor d. Third personthe right of choice is with the debtor, unless expressly given to the creditor.
22. In facultative obligation the right choice belongs to:
a. The creditor c. Both creditor and debtor
b. The debtor d. Third person
e. None of the above 23. The sources for
liability for damages are the following except:
a. Fraud b. Negligence c. Delay d. Quasi-delict
24. When the fulfillment of the condition depends upon the sole will the debtor, the conditional obligation shall be:
a. Voidable b. Unenforceable c. Valid d. Void potestative on the part of the debtor: if suspensive—VOID; if
resolutory—VALID. @_@???!!
25. Z obtained a loan from X on the amount of 10,000.00. Z promised to pay the said loan of 10,000.00 to X as soonas possible. Two year
had lapsed but the loan is still unpaid .The remedy available to X is: a. To file an action against Arturo for collection of debt
b. To demand payment for damages
c. To attach the property of Z;
d. To ask (petition) the court to fix the period
26. A, B and C are solidarily creditors of D in the amount of 15,000.00. C demanded payment from D. After thedemand for
payment by C, D in order to extinguish the entire obligation may pay to: a. A only b. B only c. C only d. To either A or B
27. No person shall hold responsible by reason of fortuitous event except:
a. When time is the essence of the contract;
b. When demand would be useless
c. When the nature of the obligation requires the assumption for risk d When the obligation is purely personal in nature
28. Dela Cruz obliged himself to deliver a determinate horse to Mary Jane on November 5.Whewn the date of thedelivery
of the horse arrived, the horse has already an offspring. Dela Cruz is obliged to deliver the: a. Horse only
b. The horses as well as the offspring
c. Dela Cruz can refuse to deliver both the horse and offspring
d. Dela Cruz may ask Mary Ann to pay the offspring
29. When the obligor voluntarily prevents the happening of the condition it is deemed that the condition is:
a. Constructively fulfilled c. constructively demandable
b. constructively extinguished d. constructively nullified
30. A bound himself to deliver a determinate horse to B on January 14, 2002 .On January 16, 2002 the horse wasstruck and
killed by lightning
a. A is liable for the loss of horse because he was in delay
b. A has the obligation to replace the horse
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c. A’s obligation is extinguished
d. B may claim damages from A
31. Payment by cession as distinguished from the Dation in payment
a. The debtor is not necessarily in a state of financial difficulty
b. The effect is to release the debtor for the net proceeds of the things cede or assigned
c. The property is alienated by the debtor to the creditor in satisfaction of a debt in money
d. What is delivered by the debtor is merely a thing to be considered as the equivalent of the performance ofthe obligation
32. A owes B 20,000 which become due and payable last June 23, 2001. On that date A offered B 10,000 the onlymoney
he then had but B refused to accept the payment. A therefore met C, B’s 23 year old son, to whom he gave the
10,000
with the request that he turn the money to B. The money was stolen while in the C’s possession. How much may
B
still recover from A?
a. 20,000 b. 10,000 c. 15,000 d. 0.00
33. If a third person pays an obligation. What are the rights which are available to him if he pays the obligation withthe knowledge and
consent of the debtor?
First answer – He can recover from the debtor the entire amount, which he has paid Second answer –He is
subrogated to all the rights of the debtor ?
a. Both answers are correct c. Only the first answer is correct
b. Both answers are wrong d. Only the second answer is correct
34. A, B and C executed a promissory note binding themselves to pay 9,000.00 to X, Y and Z. The note is now due and demandable. Can the
creditors proceed against A alone for the payment of entire debt? a. No each creditor can collect 3,000 from A
b. Yes either X, Y or Z can collect 9,000 from A
c. No each creditor can collect only 1,000 from A
d. Yes the promissory note is silent with respect to the rights of the creditor s, the obligation is presumed tosolidarily
35. Indivisibility as distinguished from solidarity
a. Plurality of subject is invisible
b. When the obligation is converted into one of indemnity for damages because of breach, the character of theobligation
remains
c. Refers to the legal tie or vinculum
d. Refers to the prestation which constitute the object of obligation
36. A source of obligation not arising from law
a. negotiorum gestic b. solutio indebiti c. culpa aquiliana d. contract
37. The loss or deterioration of the thing intended as a substitute through the negligence of the obligor does notrender him
liable
A person alternatively bound by different prestation shall completely perform one of them
a. true, true b. true, false c. false , true d. false ,false
38. There being no express stipulation and if the under taking is to deliver a determinate thing the payment shall bemade
a. At the domicile of the debtor
b. at the domicile of the creditor
c. whatever that thing might be at the moment the obligation was constituted
d. whenever the thing might be at the moment the obligation is to be fulfilled
39. Demands is not needed to put the debtor in fault, except
a. When the demand would be useless
b. When the parties so stipulate
c. When time is the essence
d. When the fixing of the time is the controlling motive for the establishment of the contract
40. Culpa aquiliana as distinguished from culpa contractual
a. Proof of due negligence in the selection and supervision of the employees is not as a defense
b. Proof of the contract and of its breach is sufficient prima facie to warranty recovery
c. The negligence of the defendant is merely an incident in the performance of the obligation
d. The source of liability is the defendant’s negligent acts or omission itself
41. This is the kind of diligence that the obligor must observe in the performance of his obligation to givesomething:
a. Diligence of a good father of a family
b. Extraordinary diligence of a good father of a family
c. Diligence of a good father of a family
d. Diligence of a good father of a family even if the law or the stipulation requires another standard of care
42. D owes C P1M. X without the knowledge or against the will of D paid C P2M. Can X get reimbursement from D?
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a. P2M by the way of reimbursement from D to prevent unjust enrichment on the part of D at the expense of X b. P1M only for
that is the extent of the benefit of D.
c. No reimbursement because the payment was not proper being without the knowledge or against the will of D.
d. P1M plus interest from the time of payment until reimbursement
43. Mel sold to Jay her car and promise to deliver the car to Jay on January 30, 2004 .On January 15, 2004, Mel soldthe same
car to Patrick and Patrick immediately possessed the car. As of February 5, 2004, Jay has not received the car from Mel.
a. Jay can cancel the contract of sale between Mel and Patrick because the contract of the sale between himand Mel was
perfected first;
b. Mel cannot considered in delay because there was no demand yet from Jay
c. Mel is already in delay, even if there was no demand from Jay and she shall be liable for damages
d. The sale is rescissible because of damage caused to Jay
44. S sold his car with Plate No. XYZ 123 to B and B paid 150,000 to S. They agreed that the said car will bedelivered by
S to
B on December 14, 2002 .Which of the following statements is true based on the facts given? a. B is considered as
the owner of the car on December 14, 2002
b. S may deliver the car to B on December 12.2002 and compel to B to accept it.
c. B may demand for the delivery of the car on December 13, 2002
d. S will be delay if he will not be able to deliver the car on the maturity date
45. Which of the following statements is true and correct?
a. Where an obligation is secured by a pledge or mortgage and it is not paid when due, the pledge ormortgagee may
appropriate the thing given by the way of pledge and mortgage
b. In both pledge and mortgage, the creditor is entitled to deficiency judgment
c. Pledge and mortgage are accessory contracts because they cannot exist by themselves
d. Unless otherwise agreed upon by the parties, the sale of the mortgaged property extinguishesin full the
mortgage constituted thereon.
(a) pactum commissorium (prohibited by law)
(b) in a pledge, the creditor does not get the deficiency
(d) if there’s still deficiency even after the property mortgaged had been foreclosed, debtormortgagor is still liable for
the deficiency.
46. A, B and C borrowed P3M from D, E and F evidenced by a promissory note worded as follows to wit.”I promise topay D,
E and F P3M. (Sgd) A, B and C”. How much can D collect from A?
a. P3M b. P.5M c. P1.5M d. P1M
47. A, B and C bound themselves to deliver X a specific car worth P3M. Due to the fault of A the car was lost. In thiscase:
a. X can claim damages from any one of the three proportionate part of liability because the obligation isindivisible
b. X can claim only from A the whole amount of damages other than value of the car
c. Since solidarily liabilities for damages, X can claim the same from any of the three
d. D is only liable for damages although B and C are liable for their respective shares in the obligation
48. L, M and N are the solidarily debtors of Y for the amount of 300,000 payable as follows:
L- 50,000 payable when he passed the CPA Boards Exams
M- 100,000 payable on February 14, 2004
N- 150,000 payable upon completion of his construction project If L will pass the CPA Boards Exams, what shall be the right
of Y?
a. demand 50,000 from L only c. demand 300,000 from L,M and N
b. demand 50,000 from L,M and N d. demand 300,000 from L only
49. A obliged himself to deliver the cans of powdered milk B from Pangasinan to Manila. While his truck wastraveling on
the North expressway, it was hi-jacked by the band of robbers who also took the cans of milk belonging to B. Is
liable for the loss of goods?
a. No because they were generic things and they cannot be lost
b. Yes because he was in possession of the same at the time of the loss and therefore presumed at fault.
c. Yes because there was no stipulation exempting him from loss in case of fortuitous event
d. No because the loss was due to fortuitous event
50. A brought her diamond ring to a jewelry shop for cleaning and the latter undertook to return the ring byFebruary 1,2000.
When the said date arrived, the jewelry shop informed A that the job was not yet finished and they asked A to return
five days after. On February 6, 2000 A went to the shop to claim the ring but she was informed that the same was stolen
by a thief the night before. Decide
a. The jewelry shop is not liable for the loss because it took place due to the force majeure
b. The jewelry shop is not liable if it was so stipulated between the parties
c. The jewelry shop is not liable for the loss despite the force majeure because of delay
d. The jewelry shop is not liable for the loss because there was no delay on its part
BUSINESS LAW
QUIZ ON OBLIGATIONS – PART III
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MULTIPLE CHOICE. Select the best answer by writing the letter of your choice
1. The following are the requisites of an obligation, except
a. Passive subject, debtor, debtor or obligor
b. Active subject, creditor, or obligee
c. Efficient cause
d. Presentation
2. Obligations arise from the following except:
a. Contracts c. Law
b. Quasi-contracts d. Negligence
3 It is a voluntary administration of the property of another without his consent a. Negotiorum
gestio c. Quasi-contract
b. Solutio indebiti d. Contract
4. It is a wrong committed without any pre-existing relations between the parties
a. Natural obligation c. Quasi-contract
b. Quasi-delict d. Culpa contractual
5. Unless the law or stipulation of the parties requires another standard of care, every person obliged to give something is also obliged to
take care it with a. Extraordinary diligence
b. Diligence of a father of a good family
c. Diligence of a father of a good family
d. Good diligence of a father of a family
6. The creditor has a right that is enforceable against a definite passive subject. The right is known
a. Personal right c. Determinate thing
b. Real right d. Real thing
7. It is a thing that is particularly designated or physically segregated from all others of the same class. a. Generic thing c.
Determinate thing
b. Indeterminate thing d. Real thing
8. One of the following is a determinate thing
a. A BMW with the license plate no. HNT 888 c. A Honda Civic Sir car
b. One of the vehicles d. A gold Rolex watch
9. Demand must be made for delay to exist in one of the following case.
a. When it was stipulated by the parties that demand need not made
b. When the law provides that demand need not be made
c. When the obligation is silent on the necessity of demand
d. When the time is of the essence of the contract
10. This refers to delay on the part of the creditor
a. Mora solvendi ex re c. Mora solvendi ex persona
b. Compensation morae d. Mora accipiendi
11. There shall be no liability for the loss due to fortuitous event in one of the following case. a. When the debtor delays
b. When the parties stipulated that there shall be liability even in case of loss due to fortuitous event
c. When the nature of the obligation requires the assumption of risk
d. When there was no stipulation as to liability of the debtor in case of loss due to fortuitous event
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12. The following are the remedies of the creditor to pursue his claims against the debtor except: a. Pursue the property owned
b. Exercise all the rights and bring all the actions of the debtor for the said purpose (accion subrogatoria)
c. Impugn the acts which the debtor may have done to be defraud his creditor. (accion pauliana)
d. Compel the debtor to perform the service in obligations to do ???!!
13. D borrowed 50,000.00 from C. C dies before he has collected the debt leaving S, his soon as heir. Which of the following statements are
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 because the law prohibits the transmission of the credit right
14. D is obliged to give C a specific car if C passes the CPA Examination. This obligation is an example of: a. A pure obligation
b. An obligation with a suspensive condition
c. An obligation with a resolutory condition
d. An obligation with a period
15. One of the following obligations is not immediately demandable.
a. Pure obligation
b. Obligation with a resolutory condition
c. Obligation with an in diem period
d. A pure obligation really??!!??!! I guess, it is when an obligation is with a SUSPENSIVE condition.
16. One of the following is a void obligation?
a. D is obliged to give C 5,000.00 if C does not go to the moon
b. D is obliged to give C 5,000.00 if D goes to Baguio
c. D is obliged to give C 5,000.00 if C goes to Baguio
d. D is obliged to give C 5,000.00 if D wins the first prize in the sweepstakes on a ticket that he had already purchased.
Potestative. Depends upon the sole will of the debtor. Void.
17. D is obliged to give C 10,000.00 if X dies. This example of:
a. An obligation with a suspensive condition
b. An obligation with a resolutory condition
c. An obligation with a period
d. A pure obligation
18. When debtor binds himself to pay when his means permit him to do so, the obligation is:
a. An obligation with a resolutory condition
b. A pure obligation
c. An obligation with a suspensive condition
d. An obligation with a suspensive period
19. Whenever a period is designated in an obligation, the said period shall presumed to have been established for the benefit of:
a. The debtor c. Both the debtor and the creditor
b. The creditor d. either of the parties
20. The debtor shall lose the right to make use of the period in the following cases,
a. When he becomes insolvent
b. When he violates any undertaking in consideration of which of the creditor agreed to the period c. When the debtor
attempts to abscond
d. When he does not furnish any guaranty or security to the creditor
failure to furnish the guaranties or securities promised. ???
21. An obligation ceases to be alternative and becomes a simple obligation in the following cases,
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 prestation that due only one is practicable
d. When several prestation are due to the performance of one is enough to extinguish the obligation
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a.
