Regulatory Framework from Business Transactions 1

Obligations and Contracts Test Banks

1.The following are the requisites of an obligation, except

A. Passive and active subject C. Efficient cause
B. Prestation D. Demand

2.The right of the creditor that is enforceable against a definite debtor is

A. Real right B. Natural right C. Moral right D. Personal right

3. Which of the following is a civil obligation?

A. X obliges himself to pay Y P10,000 on October 30, 2009.
B. A is a debtor of B for P20,000 due on September 30, 1995.
C. The obligation of a husband and wife to observe fidelity.
D. The obligation of a catholic to hear mass every Sunday.

4. Specific performance may not be possible in this civil obligation

A. A, a painter, obliges himself to paint the portrait of B on April 9, 2009
B. C, a farmer, obliges himself to give his only cow to D on February 14, 2009
C. E, a veterinarian, obliges himself to give one of his dogs to F on May 1, 2009
D. G, a registrar of deeds, obliges himself to effect registration of H’s parcel of land on
February 28, 2009.

5. The source of obligations which is a rule of conduct, just and obligatory, promulgated
by legitimate authorities for common good, benefit and observance
A. Contracts B. Quasi-contracts C. Delicts D. Law

6. A juridical necessity to give, to do or not to do

A. Civil obligation C. Moral obligation
B. Natural obligation D. Social obligation

7. They give a right of action to compel their performance

A. Civil obligation C. Natural obligation
B. Moral obligation D. Social obligation

8. The obligee has a right to enforce the obligation against the obligor in a court of law
A. Civil obligation C. Natural obligation
B. Moral obligation D. Social obligation

9. This is based on equity and justice

A. Civil obligation C. Natural obligation
B. Moral obligation D. Social obligation

10. The person in whose favor the obligation is constituted

A. Obligor B. Obligee C. Passive subject D. Debtor

11. Synonymous to obligee

1. Creditor 2. Active subject 3. Debtor 4. Passive subject
A. 1 and 2 B. 1 and 4 C. 2 and 3 D. 3 and 4

12. The person who has the duty of giving, doing or not doing.
A. Obligee B. Obligor C. Active subject D. Creditor

13. Synonymous to obligor

1. Creditor 2. Active subject 3. Debtor 4. Passive subject
A. 1 and 2 B. 1 and 4 C. 2 and 3 D. 3 and 4

14. The object or subject matter of the obligation

A. Prestation B. Vinculum C. Active Subject D. Passive subject

15. The efficient cause or juridical tie why the obligation exists
A. Active subject B. Passive subject C. Prestation D. Vinculum

16. The duty not to recover what has voluntarily been paid although payment was no
longer required
A. Civil obligation C. Moral obligation
B. Natural obligation D. Juridical obligation

17. The following are sources of obligations derived from law, except;
A. contracts B. quasi-contracts C. delicts D. quasi-delicts

18. Cannot be enforced by court action and depend exclusively upon the good
conscience of the debtor.
A. civil obligation C. moral obligation
B. natural obligation D. social obligation

19. A owes B P1,000. A, knowing that the debt has been prescribed, nevertheless, still
pays B. Can A recover what he voluntarily paid?

First answer Yes, because B has no right to demand the payment effected by A. Second
Answer No, the payment extinguished the natural obligation.

A. Both answers are correct. C. Only the first is correct.

B. Both answers are wrong. D. Only the second is correct.

20. The duty to pay taxes and support one’s family are obligations arising from
A. Law B. Contracts C. Quasi-contracts D. Delicts

21. The obligation of husband and wife to render mutual help and support arises from
A. Contract B. Law C. Quasi-contract D. Quasi-delict

22. A supports B, a minor, because B’s father refuses to support B. The father is obliged
to reimburse A. The source of obligation is
A. contracts B. quasi-contracts C. delicts D. quasi-delicts

23. A juridical relation resulting from a lawful, voluntary, and unilateral act and which has
for its purpose the payment of indemnity to the end that no one shall be unjustly
enriched or benefited at the expense of another.
A. Contract B. Quasi-contract C. Delicts D. Quasi-delicts

24. When a person voluntarily takes charge of another’s abandoned business or property
without the owner’s authority where reimbursement must be made for necessary and
useful expenses.
A. Quasi-contract B. quasi-delict C. Negotiorum gestio D. Solutio indebiti

25. When something is received when there is no right to demand it, and it was unduly
delivered thru mistake, the recipient has the duty to return it.
A. Quasi-contract B. Quasi-delict C. Negotiorum gestio D. Solutio indebiti

26. - A quasi-contract is an implied contract.

- A defendant who is acquitted in a criminal case is no longer liable civilly.
A. True; true B. True; false C. False; true D. False; false

27. Tort or culpa aquiliana is

A. Quasi-contract B. Quasi-delict C. Negotiorum gestio D. Solutio indebiti
28. A fault or act or omission of care which causes damage to another, there being no
pre- existing contractual relations between the parties.
A. Quasi-contract B. Quasi-delict C. Negotiorum gestio D. Solutio indebiti

29. Omission of the diligence which is required by the circumstances of person, place
and time.
A. Ignorance B. Negligence C. Impotence D. Insanity

30. Unless the law or the stipulation of the parties require another standard of care, every
person obliged to give something is also obliged to take care of it with the proper
diligence.
A. Observing utmost care.
B. Observing extraordinary diligence
C. Of a father of a good family
D. Observing ordinary diligence

31. Ordinary diligence is

A. Diligence of a good father of a family.
B. Extraordinary diligence
C. Diligence required by law
D. Diligence of a father of a good family.

32. The creditor has the right to the fruits of the thing.
A. From the time the obligation to deliver it arises.
B. From the time the fruits have been delivered.
C. From the time there is meeting of the minds.
D. From the perfection of the contract.

33. From the time the fruits have been delivered, the creditor shall acquire
A. Real right C. Moral right
B. Personal right D. Inchoate right

34. If A sells to B a fountain pen, the giving by A to B of the fountain pen is

A. Actual tradition C. Symbolical tradition
B. Constructive delivery D. Traditio longa-manu

Items 35-39 A kind of constructive delivery whereby:

35. There is delivery when the keys of a warehouse are given.

A. Traditio simbolica C. Traditio brevi-manu
B. Traditio longa-manu D. Traditio constitotum possessorium

36. There is delivery by mere consent or pointing out of an object.

A. Traditio simbolica C. Traditio brevi-manu
B. Traditio longa-manu D. Traditio constitotum possessorium

37. A possessor of a thing not as an owner, becomes the possessor as owner.

A. Traditio simbolica C. Traditio brevi-manu
B. Traditio longa-manu D. Traditio constitotum possessorium

38. A possessor of a thing as an owner retains possession no longer as an owner, but in

some other capacity
A. Traditio simbolica C. Traditio brevi-manu
B. Traditio longa-manu D. Traditio constitutom possessorium

39. The opposite of brevi-manu

A. Longa-manu C. Constitutom possessorium
B. Simbolica D. Quasi-tradition

40. If a thing is capable of particular designation.

A. Generic B. Specific C. Indeterminate D. Indeterminable

41. If a thing refers to a class, to a genus and cannot be pointed out with particularity.
A. Generic B. Specific C. Determinate D. Indeterminable

42. A wife was about to deliver a child. Her parents brought her to the hospital. Who
should pay the expenses for medical attendance?
Answer 1 – The husband, because it is his duty to support his wife and support includes
medical attendance.
Answer 2 – The parents, because they were the persons who brought the “wife” to the
hospital.
A. Both answers are correct. C. Only the first is correct.
B. Both answers are not correct. D. Only the second is correct.

43. The following are kinds of fruits of an obligation, except

A. natural B. industrial C. civil D. penal

44. Spontaneous products of the soil and the offspring and other products of animals
A. natural B. industrial C. civil D. penal

45. Products of the soil through cultivation or intervention of human labor.

A. natural B. industrial C. civil D. penal

46. Fruits arising out of contracts - like rental payments.

A. natural B. industrial C. civil D. penal

47. When does the obligation to deliver arise?

Answer 1 – If there is no term or condition, then from the perfection of the contract.
Answer 2 – If there is a term or condition, then from the moment the term arrives or the
condition happens.
A. True; true B. True; false C. False; true D. False; false

48. A is obliged to give B 10 kilos of sugar, which of the following is not correct?
A. B can demand that A obtain the sugar and deliver it to him.
B. B can just buy 10 kilos of sugar and charge the expense to A.
C. A can insist on just paying B damages or the monetary value of the sugar.
D. B may require another person to deliver the sugar and charge the expenses to A.

49. Where demand by the creditor shall be necessary in order that delay may exist.
A. When time is of the essence of the contract.
B. When demand would be useless.
C. When the obligor has expressly acknowledged that he is in default.
D. When the obligor requested for an extension of time.

50. Debtor’s default in real obligation.

A. Mora accipiendi C. Mora solvendi ex-persona
B. Mora solvendi ex-re D. Compensatio morae

51. Debtor’s default in personal obligation.

A. Mora accipiendi C. Mora solvendi ex-persona
B. Mora solvendi ex-re D. Compensatio morae

52. Default on the part of the creditor

A. Mora accipiendi C. Mora solvendi ex-persona
B. Mora solvendi ex-re D. Compensatio morae
53. Default on the part of both parties.
A. Mora accipiendi C. Mora solvendi ex-persona
B. Mora solvendi ex-re D. Compensatio morae

54. A borrowed money from B payable on December 10, 2008. If A failed to pay on due
date, will A be in delay?
A. Yes, because there is stipulation as regards the due date.
B. Yes, if the obligation is in writing.
C. No, because demand has not been made by B.
D. No, if A has the money to pay B.

55. Damages awarded for mental and physical anguish.

A. Moral B. Exemplary C. Nominal D. Temperate

56. Damages awarded to vindicate a right.

A. Liquidated B. Actual C. Nominal D. Exemplary

57. Damages awarded to set an example.

A. Exemplary B. Liquidated C. Nominal D. Moral

58. When the exact amount of damages cannot be ascertained.

A. Exemplary B. Liquidated C. Temperate D. Moral

59. Damages determined beforehand.

A. Temperate B. Liquidated C. Actual D. Moral

60. A obliged himself to deliver to B the following:

1) 2008 Sing-It Yamaha Organ
2) Magalona passenger jeepney with engine No. 69 and chasis No. 88
First Statement - In case A failed to deliver the 2008 Yamaha Organ, the court may
compel A to deliver the 2008 Yamaha Organ plus damages
Second Statement - In case A failed to deliver the jeepney, the court may compel A to
deliver the jeepney plus damages.
A. True; true B. True; false C. False; true D. False; false

61. I – If a person obliged to do something fails to do it, the same shall be executed at
his cost.
II - Those who in the performance of their obligations are guilty of fraud,
negligence, or delay and those who in any manner contravene the tenor threof, are liable
for damages.
A. True; true B. True; false C. False; true D. False; false

62. I - Responsibility arising from fraud is demandable in all obligations. Any waiver of
an action for fraud is void.
II – If the law or contract does not state the diligence which is to observed in the
performance of an obligation, that which is expected of a father of a good family shall
be required.
A. True; true B. True; false C. False; true D. False; false

63. I – The receipt of a later installment of a debt without reservation as to prior

installments, shall give rise to a rebuttable presumption that such installments have been
paid.
II – If a taxpayer pays his income tax liability for the current year, there is a
presumption that tax liability for the previous year has been paid.
A. True; true B. True; false C. False; true D. False; false

64. With regard to the right as to the fruits of the thing, which is not correct?
A. If the obligation is subject to a suspensive condition, the obligation to deliver arises
from the moment the condition happens.
B. If the obligation is subject to a suspensive condition, the obligation to deliver arises
upon the expiration of the term or period.
C. If there is no condition or term for its fulfillment, the obligation to deliver arises from
the perfection of the contract or creation of the obligation.
D. If the obligation arises from the contract of sale, the vendor has a right to the
fruits of the thing from the time the obligation to deliver arises.

65. A is obliged to deliver his only car to B on November 20, 2009. If A does not deliver,
and on November 22, 2009, a typhoon destroys the car.
A. A is not liable because the obligation is extinguished.
B. A is liable because he is in delay.
C. A and B will divide the loss equally.
D. A’s obligation is converted into a monetary obligation.

66. I – When what is to be delivered is a determinate thing, the creditor may compel
the debtor to make the delivery and if the debtor refuses, the creditor may ask that the
obligation be complied with at the expense of the debtor.
II – The obligation to give a determinate thing includes that of delivering all its
accessions and accessories, even though they may not have been mentioned.
A. True; true B. True; false C. False; true D. False; false

67. What is the basis of the liability of a school when a student is stabbed inside the
campus by a stranger in the school?
A. Contracts B. Quasi-contracts C. Delicts D. Quasi-delicts

68. The following except one, are included in civil liability. The exception is
A. Restitution B. Reparation C. Indemnification D. Starvation

69. The thing itself shall be restored, as a rule

A. Restitution B. Reparation C. Indemnification D. Starvation

70. The court determines the amount of damage taking into consideration the price of
the thing and its sentimental value to the injured person.
A. Restitution B. Reparation C. Indemnification D. Starvation

71. The consequential damages suffered by the injured person and those suffered by his
family or third person by reason of the act.
A. Restitution B. Reparation C. Indemnification D. Starvation

72. Action to impugn or rescind acts or contracts done by the debtor to defraud the
creditors.
A. Accion reinvindicatoria C. Accion subrogatoria
B. Accion pauliana D. Accion quanti-minoris

73. A borrower agreed, that in case of non-payment of his debt, to render services as a
servant. Which of the following is not correct?
A. If the services will be rendered in satisfaction of the debt, the stipulation is valid.
B. If the services will be “for free”, the stipulation is void for being contrary to law and
morals.
C. If the services will not be gratuitous, specific performance of the service will be
the proper remedy in case of non-compliance.
D. Should there be a valid stipulation as regards the rendition of services, an action for
damages should be brought in case of non-compliance.

74. A ordered B, a 10 year old boy to climb a high and slippery mango tree with a
promise to give him part of the fruits. B was seriously injured when he fell while
climbing the tree. Is A liable?
First Answer - No, because no person shall be responsible for fortuitous events.
Second Answer - Yes, because A is negligent in making the order without taking due
care to avoid a reasonable foreseeable injury to B.
A. True; true B. True; false C. False; true D. False; false

75. A pays for B’s transportation fare, without B’s knowledge and later discovers that B
was entitled to half-fare. Which is not correct?
A. A can recover the half-fare from B.
B. A can recover the half-fare from the carrier.
C. A can recover the ½ from B and ½ from the carrier.
D. A can recover half-fare from B only.

76. A borrowed P100,000 from B. the loan was secured by a mortgage of A’s land in
favor of B. Without the knowledge of A, C paid B the sum of P100,000 for A’s debt. As a
result
A. C may foreclose the mortgage on A’s land if A cannot pay.
B. C cannot claim reimbursement from A in as much as the payment was made without
the knowledge of B.
C. C can recover the amount from B in case A refuses to reimburse C.
D. The obligation of A to B was extinguished but A should reimburse C the amount
of P100,000 because he was benefited by the payment.

77. When the debtor of a debtor is ordered not to pay the latter so that preference would
be given to the latter’s creditor.
A. Garnishment B. Interpleader C. Injunction D. Attachment

78. A obtained a loan from B bank. The loan was embodied in several promissory notes.
As security the borrower executed a chattel mortgage on his standing crops. Said crops
were however subsequently destroyed by typhoon “Rosing”. Is A still liable for the loan
despite the destruction of the crops by a fortuitous event?
First Answer - Yes, the obligation of A was to deliver a generic thing – money.
Second Answer - No, the obligation was to deliver determinate things – the standing
crops.
A. True; true B. True; false C. False; true D. False; false

79. A sold a half-interest in his specific car to B. It was agreed that the price to be paid
by B would be used in installing a new engine on the car. Later, the car was destroyed
by a fortuitous event. Is B’s obligation to pay the price extinguished?
First Answer - Yes, there is no more use of installing a new engine since the car
has already been destroyed by a fortuitous event.
Second Answer - No, B must still pay because his obligation to pay in generic.
A. True; true B. True; false C. False; true D. False; false

80. I – A commits the crime of theft and is asked to return the car to its owner B. If,
before the car is delivered to B it is destroyed by a fortuitous event, Is A’s liability
extinguished?
II – Using above statement, A had previously asked the owner to accept the car,
but the owner without any justifiable reason refuses to accept the car, and it is
destroyed by a fortuitous event, Is A’s liability extinguished?
A. Yes; Yes B. No; Yes C. Yes; No D. No; No

81. I - There is no delay in an obligation not to do something.

II – Solutio indebiti and negotiorum gestio are implied contracts.
A. True; true B. True; false C. False; true D. False; false

82. I - Consent of the parties is required in quasi-contract.

II – The creditor acquires real rights over the thing from the time the obligation to
deliver arises.
A. True; true B. True; false C. False; true D. False; false

83. The creditor has a right to the fruits of the thing from the time
A. The thing is delivered. C. The obligation to deliver the thing arises.
B. The fruits are delivered. D. The sale is perfected.

84. The buyer has a right to the fruits of the thing from the time
A. The thing is delivered. C. The obligation to deliver the thing arises.
B. The fruits are delivered. D. The sale is perfected.

85. Which is not considered as quasi-contract?

A. Solutio indebiti
B. Negotiorum gestio
C. When the third person with the knowledge of the debtor, pays the debt.
D. Reimbursement due the person who saved property during fire or typhoon without the
knowledge of the owner.

86. No longer enforceable by court action but is binding on the party who oblige with it in
conscience is
A. Civil obligation C. Moral obligation
B. Natural obligation D. Conditional obligation

87. If A pays a debt that has prescribed

1. Not knowing it has prescribed, A can recover on the ground of undue payment.
2. Knowing it has prescribed, A cannot recover for this would be a case of natural
obligation.
A. Both 1 and 2 are true C. Only 2 is true
B. Only 1 is true D. Both 1 and 2 are false

88. On June 24, 2009 A is obliged to give B his specific car. There was no delivery until
June 30 when the garage of the car collapsed due to heavy rain and strong winds of
Typhoon Ondoy, and the car was totally destroyed. Is A still liable?
A. No, even if A was in default, he could plead impossibility of performance.
B. Yes, because the contract is perfected.
C. No, because there was no demand by B to deliver the car.
D. Yes, the obligation to deliver the car is changed to pay the equivalent value because B
is in legal delay.

89. This obligation is demandable at once when it

A. has a resolutory condition. C. is with a term ex-die.
B. has a suspensive condition D. has a period.

90. When the debtor binds himself to pay when his means permit him to do so, the
obligation shall be deemed to be with a
A. Resolutory period C. Potestative condition
B. Suspensive condition D. Period.

91. A promise to give B his Volvo car if B passes the CPA Board Exams. Pending the
results of the exams, the car is destroyed by a fortuitous event without any fault on the
part of A, As a result
A. The obligation of A is extinguished.
B. The obligation of A is converted into monetary obligation.
C. The obligation of A will equitably reduced.
D. A will have to give B another car of equivalent value.

92. A period with a suspensive effect.

A. I will support you beginning January 1 of next year.
B. I will support you until January 1 of next year.
C. I will support you if A dies of TB.
D. I will support you if A marries B.

93. A period with a resolutory effect.

A. I will support you beginning January 1 of next year.
B. I will support you until A dies.
C. I will support you if A dies.
D. I will support you if A dies of TB.

94. The obligation begins only from a day certain or upon the arrival of said period.
A. Ex die B. In diem C. Conditional D. With a period

95. The obligation remains valid up to a time certain but terminates upon the arrival of
said period.
A. With a period B. Conditional C. Ex die D. In diem

96. Anything paid or delivered before the arrival of the period, the obligor being unaware
of the period or believing that the obligation has become due and demandable.
A. May be recovered without interests.
B. May be recovered with interests.
C. May be recovered with fruits and interests.
D. May not be recovered.

97. Whenever in an obligation a period is designated, it is presumed to have been

established for the benefit
A. Of both the creditor and debtor C. Of the debtor only
B. Of the creditor only D. Of third persons

98. This is a valid obligation.

A. A will give B P100,000 if B will kill C.
B. A will give B P1,000,000 if B will agree to be the mistress of A.
C. A will give B P100,000 if B can make C rise from the dead.
D. A will give B P1,000 if B will not pose nude in a painting session.

99. Where two or more prestations have been agreed upon but only one is due, the
obligation is
A. Alternative B. Facultative C. Conjoint D. Solidary

100. Using the preceding number, the right of choice, belongs

A. To the debtor
B. To the creditor
C. To both the creditor and debtor
D. To third person

101. A is obliged to give B, at A’s option either object No. 1, Object No. 2, or Object No.
3. If all objects were lost thru A’s fault, which is correct?
A. The value of the first thing lost plus damages must be given to
B. B. The value of the last thing lost plus damages must be given to B. C. The value
of any of the things lost plus damages must be given to B.
D. The obligation is extinguished.

102. I - Using the preceding number, if objects nos. 1 1and 2 were destroyed by a
fortuitous event and later object No. 3 is destroyed by A’s fault, A would still be liable.
II - Using the preceding number, if objects nos. 1 1and 2 were destroyed by A’s
fault and later object No. 3 is destroyed by fortuitous event, A would still be liable.
A. True; true B. True; false C. False; true D. False; false
103. A is obliged to give B either objects No. 1 or No. 2 or No. 3 at B’s option. Before B
communicated his choice to A. object No. 1 had been destroyed, thru A’s fault and
object No. 2 had been destroyed by a fortuitous event. B may
A. Demand object No. 3 only as it is still available.
B. Demand the price of object No. 1 only plus damages because it was destroyed by A’s
fault.
C. Demand the value of object No 2 as the right of choice belongs to B.
D. Demand either object No. 3 or the price of object No. 1 plus damages.

104. Any of the debtors is bound to render compliance of the entire obligation.
A. alternative B. facultative C. joint D. solidary

105. In a joint obligation, joint means any of the following, except

A. pro-rata C. mancomunada simple
B. proportionate D. individually and collectively

106. In Facultative obligations, if substitution has been made, which of the following is
false?
A. The obligation is extinguished.
B. The loss of the original prestation is immaterial.
C. The obligation is converted into a simple obligation.
D. The obligation ceases to be facultative.

107. Using the preceding number, and the substitute is lost by a fortuitous event, which
is true?
A. The obligation is extinguished.
B. The debtor is liable for damages.
C. The original prestation must be given.
D. The debtor must give another object which is equally satisfactory.

108. Using the preceding number, but the substitute is lost due to debtor’s fault, which is
true?
A. The obligation is extinguished.
B. The debtor is liable for damages.
C. The original prestation must be given.
D. The debtor must give another object which is equally satisfactory.

109. Instances where the law imposes solidary liability, except

A. obligations arising from tort.
B. obligations of bailees in commodatum.
C. liability of principals, accomplices and accessories of a felony.
D. liability of partners arising out of a contract.

110. This will result to a solidary liability

A. vitiated consent on the part of one of the debtors.
B. insolvency of one of the debtors.
C. default on the part of one of the debtors.
D. quasi-delict commited by one of the partners acting in the ordinary course of
business.

111. Where only one prestation has been agreed upon, but the obligor may render
another in substitution, the obligation is
A. Alternative B. Facultative C. Conjoint D. Solidary

112. Where two or more prestations have been agreed upon, and all of them must be
performed, the obligation is
A. Alternative B. Facultative C. Conjoint D. Solidary

113. A and B are solidary debtors of C and D, solidary creditors, to the amount of
P1,000. C can demand
A. P1,000 from A or P1,000 from B C. P500 from A or P500 from B
B. P1,000 from A and P1,000 from B D. P500 from A and P500 from B

114. A and B solidary debtors of C and D, joint creditors, to the amount of P1,000 – C
can demand
A. P1,000 from A or P1,000 from B C. P500 from A and P500 from B
B. P500 from A or P500 from B D. P250 from A and P250 from B

115. A and B joint debtors of C and D, solidary creditors, to the amount of P1,000 – C
can demand
A. P1,000 from A or P1,000 from B C. P500 from A and P500 from B
B. P500 from A or P500 from D. P250 from A and P250 from B

116. A and B are joint debtors of C and D, joint creditors, to the amount of P1,000 – C
can demand
A. P500 from A or P500 from B C. P250 from A and P250 from B
B. P250 from A or P250 from B D. P500 from A and P500 from B

117. This is synonymous to joint obligation

A. Joint and several C. Individually and collectively
B. In solidum D. Mancomunada simple

118. This is synonymous to solidary obligation

A. Pro-rata C. Proportionate
B. Mancomunada D. Juntos o separadamente

119. A, B and C are joint debtors of D for P3,000.If A is insolvent, how much should B
pay D?
A. P1,000 B. P1,500 C. P2,000 D. P3,000

120. In 2007, A, B and C bound themselves in solidum to give D P9,000 subject to the
following conditions: A will pay in 2007, B, if D passes the 2008 CPA board exams and C
will pay in 2009. In 207, how much can D demand from C?
A. P9,000 B. P6,000 C. P3,000 D. P 0

121. A, B and C are solidary debtors of D for P3,000. D remitted C’s share. A therefore
paid later only P2,000. A can recover reimbursement from B in the amount of
A. P1,000 B. P1,500 C. P500 D. P0

122. Using the preceding number, if B is insolvent, A can recover from C the amount of
A. P1,000 B. P1,500 C. P500 D. P0

123. A, B and C are solidary debtors of D for P1,000. D remitted the entire obligation
when A offered to pay. A can demand reimbursement from B in the amount of
A. P1,000 B. P500 C. P333 D. P0

124. A, B and C are solidary debtors of D for P3,000 but A was incapacitated to give his
consent as he was a minor. If D sues B, how much will B be liable for?
A. P3,000 B. P2,000 C. P1,000 D. P 0

125. Using the preceding number, if D sues A, how much will A be liable for?
A. P3,000 B. P2,000 C. P1,000 D. P 0

126. A is indebted to solidary creditors B, C, and D, for P90,000. Without the knowledge
of B and C, D remitted the obligation of A, as a result,
A. The obligation of A to pay P90,000 is extinguished.
B. The obligation is not extinguished because there is no consent from B and C.
C. The obligation is extinguished only up to P30,000.
D. The obligation is extinguished up to P60,000.

127. A, B and C borrowed P6,000 from D and E, payable in 3 months with A giving in
pledge her diamond ring as security for the amount borrowed. How much can E collect
from C?
A. P1,000 B. P2,000 C. P3,000 D. P6,000

128. A is obliged to give B her college ring. If she fails to do so, she must give P10,000.
This is
A. Alternative obligation C. Facultative obligation
B. Conjoint obligation D. Obligation with a penal clause

129. Where the penalty takes the place of indemnity for the damages and for the
payment of interest.
A. Where there is stipulation to the effect that damages or interest may still be recovered,
despite the presence of the penalty clause.
B. When the debtor refuses to pay the penalty imposed in the obligation.
C. When the debtor is guilty of fraud or dolo in the fulfillment of the obligation.
D. Where there is breach of the obligations.

130. This is an obligation with a resolutory obligation.

A. I’ll give you P10,000 if you pass the 2009 CPA board examination.
B. I’ll give you my car now, but should you fail in any of your subjects, your
ownership will cease and it will be mine again.
C. I’ll give you P10,000 on December 31, 2009.
D. I’ll give you P10,000 if A dies of TB.

131. I - If the condition is potestative on the part of the debtor, the obligation is void.
II - If the condition is potestative on the part of the creditor, the obligation is valid.
A. True; true B. True; false C. False; true D. False; false

132. A owns a house rented by B. A sold the house to C where C agreed to pay the
balance of the purchase price as soon as B leaves the premises. It was further agreed
that C will take care of seeing to it that B vacates the house. Which is correct?
A. The contract is void because it is potestative on the part of C.
B. The contract is void because the consent of B was not obtained.
C. The contract is valid because the condition is mixed.
D. The contract is valid if B is willing to vacate the premises.

133. I – The condition that some event happens at a determinate time shall extinguish
the obligation as soon as the time expires or it has become indubitable that the event will
not take place.
II – The condition that some event will not happen at a determinable time shall
render the obligation effective from the moment the time indicated has elapsed, or it has
become evident that the event cannot occur.
A. True; true B. True; false C. False; true D. False; false

134. I - A father promised to give his son if the son will marry B this year. If by the end
of the year, B is already dead or the son has not married B, the obligation to give a car is
effective and demandable.
II - A father promised to give his daughter a car if the daughter will not marry her
boyfriend earlier than December 31,2009. If by December 31, 2009, has not yet married
her boyfriend, or if prior thereto, her boyfriend has died, the obligation is
extinguished.
A. True; true B. True; false C. False; true D. False; false

135. I - Obligations with a resolutory period take effect at once, but terminate upon
arrival of the day certain.
 II - Obligations with a resolutory condition take effect at once, but terminate upon
happening of the condition.
A. True; true B. True; false C. False; true D. False; false

136. A borrowed money from B and pledged her ring as security. It was agreed that A
was to pay the money loaned with interest at the end of one year. Before the expiration
of the one-year period.
A. A may compel B to accept her payment.
B. A may be allowed to pay B, if B consents.
C. A may compel B to accept her payment because the period is deemed for the benefit
of A.
D. B may refuse A’s payment as the period is deemed for the benefit of B.

137. The debtor shall lose every right to make use of the period, except
A. When after the obligation has been contracted, he becomes insolvent, unless he gives
a guaranty or security for the debt.
B. When he does not furnish the creditor the guarantees or securities which he has
promised.
C. When through fortuitous events or by his own acts the guaranties or securities
have been impaired, unless he immediately gives new ones equally satisfactory.
D. When the debtor violates any undertaking in consideration of which the creditor
agreed to the period.

138. I - “We promise to pay” when there are two or more signatures=joint liability
II – “ I promise to pay” when there are two or more signatures= solidary liability
A. True; true B. True; false C. False; true D. False; false

139. A obliged himself to pay B P100,000 in 30 days plus a penalty of P10,000 if A fails
to pay the obligation in due time. A failed to pay the obligation in 30 days, B can demand
from A
A. The principal of P100,000 plus P10,000 penalty.
B. The principal of P100,000 plus P10,000 penalty plus legal interest.
C. The principal of P100,000 plus P10,000 penalty, plus legal interest, plus damages.
D. The principal of P100,000 plus legal interest, plus damages.

140. The creditor is entitled to recover damages and interest in addition to the penalty
stipulated 1. When the debtor refuses to pay the penalty.
2. When the debtor is guilty of fraud in the fulfillment of the obligation.
A. True; true B. True; false C. False; true D. False; false

141. Action where a person in possession of certain property may bring an action
against the conflicting claimants to compel them to interplead and litigate their several
claims among themselves.
A. Garnishment B. Interpleader C. Injunction D. Attachment

142. A judicial process by virtue of which a person is generally ordered to refrain from
doing something
A. Garnishment B. Interpleader C. Injunction D. Attachment

143. Where a property is alienated to the creditor in satisfaction of a debt in money.

A. Dation in payment C. Application of payment
B. Payment by cession D. Consignation

144.Where a debtor transfers all his properties not subject to execution in favor of his
creditors so that the latter may sell them and thus apply the proceeds to their credits.
A. Dation in payment C. Application of payment
B. Cession D. Consignation

145. The act of offering the creditor what is due him together with a demand that the
creditor accept the same.
A. Application of payment C. Datio in solutum
B. Tender of payment D. Cession

146. The act of depositing the thing due with the court or judicial authorities whenever
the creditor cannot accept or refuses to accept payment.
A. Tender of payment C. Application of payment
B. Consignation D. Datio in solutum

147. The meeting in one person of the qualities of creditor and debtor with respect to the
same obligation.
A. Confusion B. Compensation C. Novation D. Condonation

148. When two persons on their own right are creditors and debtors of each other
A. Confusion B. Compensation C. Novation D. Condonation

149. This is not necessary in order that compensation may prosper.

A. That the two debts are both due.
B. That the two debts be liquidated and demandable.
C. That there be retention or controversy commenced by third persons and
communicated in due time to the debtor.
D. Both debts consists 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.

150. Compensation cannot take place, except

A. When one debt arises from the obligations of a depositary.
B. When one debt arises from the obligations of a bailee in commodatum.
C. When one debt arises because of a claim for support due to gratuitous title.
D. When one debt arises from a bank deposit.

151. The substitution or change of an obligation by another, which extinguishes or

modifies the first
A. Confusion B. Compensation C. Novation D. Consignation

152. Novation which changes the object or the principal condition of the obligation
A. Real B. Personal C. Mixed D. Partial

153. Novation which changes the parties to the obligation

A. Real B. Personal C. Mixed D. Partial

154. Expromission, delegacion or subrogating a third person in the right of the creditor.
A. Real B. Personal C. Mixed D. Partial

155. Novation which changes the object and parties of the obligation.
A. Real B. Personal C. Mixed D. Partial

156. Substitution of debtor where the initiative comes from a third person.
A. Delegacion B. Expromission C. Subrogation D. Novation

157. Substitution of debtor where the initiative comes from the debtor.
A. Delegacion B. Expromission C. Subrogation D. Novation

158. The transfer to a third person of all the rights appertaining to the creditor.
A. Delegacion B. Expromission C. Subrogation D. Novation

159. Legal subrogation is presumed in the following. Which is not correct?

A. When a third person, not interested in the obligation, pays with the approval of
the creditor.
B. When a creditor pays another creditor who is preferred, even without the debtor’s
knowledge.
C. When a third person, not interested in the obligation, pays with the express or tacit
approval of the debtor.
D. When, even without the knowledge of the debtor, a person interested in the fulfillment
of the obligation pays, without prejudice to the effects of confusion as to the latter’s
share.

160. I - Proof of actual damages suffered by the creditor is not necessary in order that
the penalty previously agreed upon may be demanded.
II – Proof of actual damages suffered by the creditor is not necessary in an
obligation with a penal clause.
A. True; true B. True; false C. False; true D. False; false

CONTRACTS

1.A delivered his bracelet to B for B’s necklace. No written agreement was signed by the
parties. Which of the following is appropriate description of the contract between A and
B?
A. Onerous and bilateral C. Bilateral and innominate
B. Bilateral and innominate D. Aleatory and nominate

2.They are the elements that are found in certain contracts and are presumed to exist
unless set aside by the parties
A. Accidental elements C. Artificial elements
B. Natural elements D. Incidental elements

3.They refer to the elements that may be stipulated by the contracting parties
A. Accidental elements C. Artificial elements
B. Natural elements D. Incidental elements

4.The following are some accidental elements of a contract of sale, except

A. Terms of payment C. Place of payment
B. Interest rate D. Accession and accessories

5. A contract where the cause with respect to each contracting party is the prestation or
the promise of a thing or service by the other is
A. An onerous contract C. An innominate contract
B. A gratuitous contract D. An aleatory contract

6. A contract where one party receives no valuable consideration and the cause is the
liberality of the benefactor is
A. A gratuitous contract C. An onerous contract
B. A unilateral contract D. A commutative contract

7. A delivered his van to B for the latter’s use for one week without any compensation.
The cause of the contract is
A. The van of A C. The period of one week
B. The generosity of A D. The delivery of the van

8. The principle that contracting parties may establish such stipulations, clauses, terms
and conditions as they may deem convenient, provided they are not contrary to law,
moral, public policy and public order, refer to the principle of
A. Liberty of contract C. Consensuality of contract
B. Relativity of contract D. Mutuality of contract

9. The following instances will render an offer ineffective before acceptance is conveyed.
Which one will not? When one of the parties
A. Is civilly interdicted C. Becomes insane
B. Becomes insolvent D. Is placed under a hypnotic spell
10. The following statements pertain to the cause of a contract. Which statement refer to
motive?
A. It is the essential reason of a contract.
B. It is always known to the contracting parties
C. It is illegality does not affect the validity of the contract
D. there will be no contract without it

11. The bargaining point, that is, when negotiation is in progress (stage in the life of a
contract)
A. Consummation B. Conception C. Perfection D. Birth

12. The meeting of minds regarding the object and cause of the contract (stage in the life
of a contract)
A. Conception B. Preparation C. Death D. Birth

13. The point where the parties have performed their respective obligations and the
contract is Terminated
A. Preparation B. Conception C. Perfection D. Consummation

14. When there is concurrence of offer and acceptance, there is

A. Payment B. Consignation C. Consent D. Tender of payment

huhu wala ang 15-23

24. An absolutely simulated or fictitious contract is

A. Void B. Voidable C. Rescissible D. Unenforceable

25. A sold to B his cow for P5,000. No date is fixed by the parties for the performance of
their respective obligations. The obligation of A is
A. To deliver the cow immediately as there is a perfected contract.
B. To deliver the cow within the reasonable time from the perfection of the contract
C. To deliver the cow upon the payment by B of P5,000
D. To rescind the contract as there is no time fixed for the delivery and payment.

27. A owes B P10,000 due on March 10, 2010. A owes B P8,000 due on March 11, 2010.
A obliged himself to deliver to B a cow valued at P6,000 on March 12, 2010. On March
13, 2010, a paid B P10,000. If A makes an application of payment,
A. The P10,000 should be applied to the first debt only
B. The P10,000 should be applied to the second debt only
C. The P10,000 may be applied either to the first debt or second debt
D. The P10,000 may be applied to the first debt, or to the second debt or to the third
debt

28. A contract where both contracting parties are incapable of giving consent is
A. Void B. Rescissible C. Unenforceable D. Voidable

29. The conception of a contract is when

A. When there is meeting of the minds C. When the contract is executed
B. When negotiations are in progress D. When the parties come to an agreement

30. Contract which has no effect at all

A. Rescissible B. Voidable C. Unenforceable D. Void

31. Contract which can not be ratified

A. Rescissible B. Voidable C. Unenforceable D. Void

32. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the
minds of the parties to a contract, the proper remedy is
A. Ratify the contract C. Annulment of the contract
B. Ask for a specific performance D. Reformation of the contract

33. A sold his land to B. The sale was made orally. B paid the agree price. B wanted to
have the sale registered but he needs a public instrument. Which is correct?
A. B may sue A for the return of his money as no one shall be unjustly enriched at the
expense of another.
B. B cannot demand the return of the purchase price because the sale is unenforceable.
C. B may compel A to execute the public instrument because the sale is valid.
D. B may only occupy and use the land as buyer in good faith

35. A is the guardian of B, a minor. B sold A’s land in writing to C valued at P1M for P.7M.
The sale is (stage in the life of a contract)
A. Rescissible B. Voidable C. Unenforceable D. Void

37. Although validly agreed upon, courts can nullify this contract because of damage to
one of the parties or to a third person and its enforcement, may cause injustice by
reason of some external facts
A. Rescissible contracts C. Unenforceable contracts
B. Voidable contracts D. Void contracts

38. A contract where the fulfillment is dependent upon the chance, so the values may
vary because of the risk or chance.
A. Commutative B. Aleatory C. Remunerative D. Gratuitous

39. A clause providing that the mortgagee will automatically own the property mortgaged
if the debt is not paid at maturity is
A. Dacion en pago C. Pactum Commissorium
B. Payment by cession D. Upset price

43. The contact must bind both contracting parties

A. Consensuality of contract C. Mutuality of contract
B. Simplicity of contract D. Relativity of contract

44. Not a characteristic of contract

A. Consensuality of contract C. Mutuality of contract
B. Simplicity of contract D. Relativity of contract

45. Contracts are generally effective only between the parties, their assigns and their
heirs
A. Consensuality of contract C. Mutuality of contract
B. Simplicity of contract D. Relativity of contract

46. A stipulation in favor of a third person

A. Stipulation pour autrui C. Assignment of credit
B. Stipulation pour over D. Pactum commissorium

48. Not a requisite of stipulation pour autrui

A. The contracting parties must have clearly and deliberately conferred a favor upon third
person
B. The stipulation must be part of the contract
C. The third person communicated his acceptance to the obligor before its revocation
D. There must be an agency between either of the parties and the third person

49. The following contracts are not perfected until the delivery of the object of the
obligations, except
A. Pledge B. Deposit C. Commodatum D. Sale

50. Pledge, deposit and commodatum are

A Consensual contracts C. Solemn contracts
B. Real contracts D. Formal contracts

52. Acceptance of an offer made by letter or telegram shall bind the offeror. From the
time the
A. Offeree accepted the offer
B. Offeree sent his letter or telegram
C. Acceptance came to the knowledge of the offeror
D. Offeror made the offer

53. A contract where consent is given through mistake, violence, intimidation, undue
influence or fraud is
A. Rescissible B. Voidable C. Unenforceable D. Void

70. The mortgagor will execute an instrument to transfer the ownership over the property
mortgaged to the mortgagee if the debt is not paid at maturity is
A. Void B. Voidable C. Valid D. Unenforceable

75. A, B and C are jointly liable to D in the amount of P9,000. D assigns the entire credit
to A. In this case
A. The obligation is extinguished because of confusion
B. B and C will not be liable to A
C. a becomes the new creditor and may demand from B and C P4,500 each
D. A’s share in the obligation is extinguished because of confusion.

huhu wala nasad ang 78-89

90. 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 a delay.
D. When the thing lost is specific

92. The obligation is demandable on the date of the obligation and shall continue to be in
force up to the arrival of the day certain:
A. Resolutory period C. Indefinite period
B. Suspensive period D. Legal period

96. Characteristic of void contracts, except

A. Defense of illegality cannot be waived
B. Cannot be ratified
C. Action for declaration of inexistense does not prescribe
D. The inexistence can be assailed by third person

99. Unless ratified, suits will not prosper if the contract is

A. Rescissible B. Voidable C. Unenforceable D. Void