CPA REVIEW SCHOOL OF THE PHILIPPINES

Manila

LAW ON OBLIGATIONS

GENERAL PROVISIONS DO DELA CRUZ/KL DELA CRUZ

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

a. Natural obligation c. Civil obligation
b. Moral obligation d. Social obligation
2. The obligee has a right to enforce the obligation against the obligor in a court of law
a. natural obligation b. moral obligation c. civil obligation d. social obligation
3. A owes B P1,000. A, knowing that the debt has 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. True, true b. True, false c. False, true d. False, false
4. Tort or culpa aquiliana is
a. Quasi-contract b. Negotiorum gestio c. Quasi-delict d. Solutio indebiti
5. A natural obligation under the New Civil Code of the Philippines is one which
a. The obligor has a moral obligation to do, otherwise entitling the obligee to damages
b. Refers to an obligation in writing to do or not to do
c. The oblige may enforce through the court if violated by the obligor
d. Cannot be judicially enforced but authorizes the obligee to retain the obligor's
payment or performance
6. 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. Delict c. Quasi-contract d. Quasi-delict
7. The thing itself shall be restored, as a rule
a. Starvation b. Restitution c. Indemnification d. Reparation
8. Claire bought a business class ticket from Alta Airlines. As she checked in, the manager downgraded her
to economy on the ground that a congressman had to be accommodated in the business class. Claire suffered
discomfort and embarrassment of the downgrade. She sued the airlines for quasi-delict but Alta Airlines
countered that, since her travel was governed by a contract between them, no uasi-delict could arise. Is the
airline correct?
a. No, the breach of contract may in fact be tortious as when it is tainted as in this case with
arbitrariness, gross bad faith and malice
b. No, denying Claire the comfort and amenities of the business class as provided in the ticket
is a tortious act
c. Yes, since the facts show a breach of contract, not a quasi-delict
d. Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation
between the parties

9. 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 c. Negotiorum gestio
b. Quasi-delict d. Solutio indebiti
10. The object or subject matter of the obligation
a. Prestation b. Active subject c. Vinculum d. Passive subject
11. The following are the requisites of an obligation, except
a. Prestation c. Demand
b. Passive and active subjects d. Efficient cause

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12. Which of the following is a civil obligation?
a. C is a debtor of D for P20,000 due on September 30, 2015
b. The obligation of a husband and wife to observe fidelity
c. A obliges himself to pay B P10,000 on December 31, 2022
d. The obligation of a catholic to hear mass every Sunday
13. 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. Indemnification c. Reparation d. Starvation
14. 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 parents, because they were the persons who brought the wife to the hospital
Answer 2 - The husband, because it is his duty to support his wife and support includes medical
attendance.
a. Both answers are correct c. Only the first is correct
b. Both answers are not correct d. Only the second is correct
15. 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. Indemnification c. Reparation d. Starvation
16. 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 parents, because they were the persons who brought the wife to the hospital
Answer 2 - The husband, because it is his duty to support his wife and support includes medical
attendance.
a. Both answers are correct c. Only the first is correct
b. Both answers are not correct d. Only the second is correct
17. 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. Quasi-contracts b. Contracts c. Quasi-delicts d. Delicts
18. The following except one, are included in civil liability. The exception is
a. Restitution b. Reparation c. Starvation d. Indemnification
19. The efficient cause or juridical tie why the obligation exists.
a. Active subject b. Vinculum c. Prestation d. Passive Subject
20. 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. Contract b. Quasi-contract c. Delict d. Quasi - delict
21. 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
22. 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. Solutio indebiti d. Negotiorum gestio
23. 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. Solutio indebiti c. Quasi-delict d. Negotiorum gestio
24. 1. - A quasi-contract is an implied contract
2. - 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
25. 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

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26. The duty to pay taxes and to support one's family are obligations arising from
a. Law b. Contracts c. Quasi-contracts d. Delicts
27. 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
28. The obligation of husband and wife to render mutual help and support arises from
a. Contract b. Law c. Quasi-contract d. Quasi-delict

29. A was employed as professional driver of B Transit Bus owned by C. In the course of his work, A hit a
concrete post causing serious injury to passenger W and pedestrian Y. The victims sued the driver and the
owner of the bus for damages. Which of the following statements is correct?
a. C is not liable if C can prove that he exercised the diligence of a good father of a family in the selection
and supervision of his employees
b. The conviction of A in a criminal case makes C liable for damages arising from criminal act
c. The liability of C shall cease if the driver A is acquitted in the criminal case
d. The guilt of driver A must be established beyond reasonable doubt to make C liable
30. The following are the elements of an obligation, except
a. Vinculum c. Prescription
b. Efficient cause d. Active and passive subjects
31. A lawful and voluntary act resulting to a benefit, except
a. Negotiorum gestio b. Solutio indebiti c. Quasi-contract d. Quasi-delict
32. The person who has the duty of giving, doing or not doing
a. Obligee b. Obligor c. Active subject d. Creditor
NATURE AND EFFECTS OF OBLIGATIONS
33. The buyer has the 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 sale is perfected d. The fruits are delivered
34. A is obliged to deliver his only car to B on November 26, 2022 If A does not deliver, and on November 26,
2022, a typhoon destroys the car, which is correct?
a. A is liable because he is in delay
b. A and B will divide the loss equally
c. A is not liable because the obligation is extinguished
d. A's obligation is converted into a monetary obligation
35. 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 thereof, are liable for damages.
a. True, false b. True, true c. False, true d. False, false
36. 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. False, true c. True, false d. False, false
37. Default on the part of both parties
a. Mora accipiendi c. Mora solvendi ex persona
b. Compensatio morae d. Mora solvendi ex-re
38. Damages awarded to vindicate a right
a. Liquidated b. Actual c. Exemplary d. Nominal
39. The creditor has a right to the fruits of the thing from the time
a. The thing is delivered c. The fruits are delivered
b. The obligation to deliver the thing arises d. The sale is perfected

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40. A borrowed money from B payable on December 15, 2022. If A failed to pay on due date, will
A be in delay?
a. Yes, if the obligation is in writing.
b. Yes, because there is stipulation as regards the due date
c. No, if A has the money to pay B
d. No, because demand has not been made by B
41. 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?
1st answer: No, B must still pay because his obligation to pay is generic
2nd answer: Yes, there is no more use of installing a new engine since the car has already been
destroyed by a fortuitous event.
a. True, true b. True, false c. False, true d. False, false
42. 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
43. Regarding 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 period, 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 a contract of sale, the vendor has a right to the fruits of the thing from the
time the obligation to deliver arises.

44. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors
a. Accion reinvindicatoria c. Accion subrogatoria
b. Accion quanti-minoris d. Accion pauliana

45. 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

46. 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
47. 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
48. A obliged himself to deliver to B the following: 2015 Sing-It Yamaha Organ
Malagona passenger jeepney with engine No. 69 and chasis No. 88
1st Statement - In case A failed to deliver a 2015 Yamaha Organ, the court may compel
A to deliver a 2015 Yamaha Organ plus damages
2nd 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

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49. Specific performance may not be possible in this civil obligation
a. C, a farmer, obliges himself to give his only cow to D on February 14, 2015
b. A, a painter, obliges himself to paint the portrait of B on January 8, 2015
c. E, a veterinarian, obliges himself to give one of his dogs to F on May 1, 2015
d. G, a registrar of deeds, obliges himself to effect registration of H's parcel of land on June 20, 2015
50. 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 c. Of a father of a good family
b. Observing extraordinary care d. Observing ordinary diligence

51. A is obliged to give B his specific car on December 31, 2022. There was no delivery and on January 4, 2023
the garage of the car collapsed due to heavy rains and strong winds of Typhoon Odette, 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

52. If a thing is capable of particular designation

a. Generic b. Specific c. Indeterminate d. Indeterminable

53. A obliged himself to give B a specific car on June 12, 2023 stipulating that A is liable even if the thing is
lost due to fortuitous event and without the need of a demand. On due date, the car got lost due to
fortuitous event. Which is correct?
a. Obligation is extinguished due to fortuitous event
b. B can compel A to deliver another car
c. B can require another person to deliver a car with expenses chargeable to A
d. Obligation is not extinguished but converted into monetary consideration
54. Fruits arising out of contracts - like rental payments
a. Natural b. Industrial c. Civil d. Penal
55. Omission of the diligence which is required by the circumstances of person, place and time
a. Ignorance b. Negligence c. Impotence d. Insanity
56. Default on the part of the creditor
a. Mora accipiendi c. Solvendi ex-re
b. Mora solvendi ex persona d. Compensatio morae
57. 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 be 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
58. When the exact amount of damages cannot be ascertained
a. Exemplary b. Liquidated c. Temperate d. Moral
59. Damages awarded to set an example
a. Exemplary b. Liquidated c. Nominal d. Moral
60. Damages predetermined beforehand
a. Temperate b. Liquidated c. Actual d. Moral
61. Which of the following is not correct in an obligation to do?
a. To sue the debtor for specific performance if he refused to voluntarily fulfill the obligation
b. The debtor shoulders the cost of execution should he fail to do so
c. To require that what has been poorly done be undone
d. To require the debtor to pay damages in case of breach

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62. 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
63. Spontaneous products of the soil and the offspring and other products of animals
a. Natural b. Industrial c. Civil d. Penal
64. Debtor's default in personal obligation
a. Mora accipiendi c. Mora solvendi-ex persona
b. Mora solvendi ex-re d. Compensatio morae
65. Debtor's default in real obligation
a. Mora accipiendi c. Mora solvendi ex-re
b. Mora solvendi ex persona d. Compensatio morae
66. 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
67. The following are kinds of fruits of an obligation, except
a. Natural b. Industrial c. Civil d. Penal
68. Damages awarded for mental and physical anguish
a. Moral b. Exemplary c. Nominal d. Temperate
69. The right of the creditor that is enforceable against anybody is, what kind of right?
a. Personal b. Moral c. Natural d. Real
70. Proof of pecuniary loss is necessary for the award of
a. Moral damages c. Exemplary damages
b. Actual damages d. Temperate damages
71. Products of the soil through cultivation or intervention of human labor.
a. Natural b. Industrial c. Civil d. Penal

72. 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?
1st answer : Yes, the obligation of A was to deliver a generic thing - money.
2nd answer : No, the obligation was to deliver determinate things - the standing crops.
a. True, true b. True, false c. False, true d. False, false

KINDS OF OBLIGATIONS
73. 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 to the creditor the guaranties or securities which he has promised
c. When the debtor violates any undertaking in consideration of which the creditor agreed to the period
d. When through fortuitous events or by his own acts the guaranties or securities have been impaired,
unless he immediately gives new ones equally satisfactory
74. I. A father promised to give his son a car 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, 2022. If by December 31, 2022, the daughter 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
75. A, B and C executed a promissory note worded as follows: "We promise to pay to X, Y and Z the sum of
P90,000. Sgd. A, B, and C. Which is correct?
a. A is obliged to pay to X, Y and Z P90,000 c. A is obliged to pay to X P60,000
b. A is obliged to pay to Z P10,000 d. A is obliged o pay to Y P30,000

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76. This is synonymous to joint obligation
a. Individually and collectively c. Mancomunada simple
b. In solidum d. Joint and several

77. A obliged himself to pay B P10,000 as soon as possible. Three months later, B demanded payment from A but the
latter refuses to pay. B can
a. File an action in court compelling A to pay the obligation
b. Consider the obligation void because the phrase as soon as possible is indeterminable
c. Go to court so that the court will fix the date of payment
d. Ask for damages because three months is considered too long for "as soon as possible"
78. On August 1, 2022, A obliged himself to give his only dog to B if B will pass the October 2022 CPA
Examination. If the CPA examination was held on October 14, 15, and 16 and the results were released on
October 17, 2022 and B passed and took his oath on November 20, 2022, B is entitled to the dog on
a. August 1, 2022 c. October 17, 2022
b. October 16, 2022 d. November 20, 2022
79. 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 the event cannot occur
a. True, true b. True, false c. False, true d. False, false
80. 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
81. Any of the debtors is bound to render compliance of the entire obligation.
a. Alternative b. Joint c. Solidary d. Facultative
82. 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
83. A period with a suspensive effect
a. I will support you if A marries B c. I will support you if A dies of TB
b. I will support you until Jan. 1 of next year d. I will support you beginning Jan. 1 of next year
84. In Facultative obligations, if substitution has been made, which of the following is false?
a. The loss of the original prestation is immaterial
b. The obligation is converted into a simple obligation
c. The obligation ceases to be facultative
d. The obligation is extinguished
85. Bon and Mark both undertook a contract to deliver to Gian 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 Bon and Mark 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 Bon and Mark joint or solidary?
a. Neither solidary nor joint since they cannot waive the defense of fortuitous event to which
they are entitled
b. Joint since the conversion of their liability to one of indemnity for damages made it joint
c. Solidary or joint upon the discretion of Gian
d. Solidary since Bon and Mark failed to perform their obligation to deliver the motor boat

86. 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

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87. 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
88. The obligation begins only from a day certain or upon the arrival of the period
a. Ex die b. In diem c. Conditional d. With a period
89. The obligation remains valid up to a time certain but terminates upon the arrival of said period
a. Ex die b. In diem c. Conditional d. With a period
90. 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
91. 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
92. In 2021, A, B and C bound themselves in solidum to give D P9,000 subject to the following conditions: A
will pay in 2022, B, if D passes the 2023 CPA board exams and C will pay in 2024. In 2022, how much
can D demand from C?
a. P9,000 b. P6,000 c. P 3,000 d. P0
93. 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. P1,500 b. P1,000 c. P500 d. P0
94. A is obliged to give B, at A's option either object No.1, Object No. 2, or Object No.3.
I. If objects nos. 1 and 2 were destroyed by a fortuitous event and later object No. 3 is destroyed by
A's fault, A would still be liable.
II. If objects Nos. 1 and 2 were destroyed by A's fault and later object No. 3 is lost by a fortuitous
event, A would still be liable.
a. True, true b. True, false c. False, true d. False, false
95. 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
96. 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 creditor only
b. Of the debtor only d. Of third persons
97. In a joint obligation, joint means any of the following, except
a. Pro-rata c. Proportionate
b. Mancomunada simple d. Individually and collectively
98. 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
99. A and B are 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 or P500 from B
b. P500 from A and P500 from B d. P250 from A and P250 from B
100. 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

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101. I'll give you my car one year after X dies. The obligation is
a. Valid, because death is sure to come.
b. Valid, but the condition will be disregarded
c. Void, then time when death will occur is not certain
d. Void, killing a person is contrary to law
102. 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
b. P250 from A or P250 from B
c. P500 from A and P500 from B
d. P250 from A and P250 from B
103. This is synonymous to solidary obligation
a. Pro-rata c. Proportionate
b. Mancomunada d. Juntos o separadamente
104. Which of the following is an obligation with a period for the benefit of the debtor?
a. An obligation payable little by little
b. An obligation payable when the debtor's means permit him to do so
c. An obligation payable within 10 months on demand
d. An obligation payable on or before Dec. 31, 2022
105. 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
106. I. A solidary creditor cannot assign his rights without the consent of the other creditors.
II. Payment of the debtor's obligation may be made by a third person even without the knowledge and
consent of the debtor.
a. True, true b. True, false c. False, true d. False, false
107. 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
108. 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
109. 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
110. The creditor is entitled to recover damages and interest in addition to the penalty stipulated
A) When the debtor refuses to pay the penalty
B) When the debtor is guilty of fraud in the fulfillment of the obligation
a. True, true b. b. True, false c. c. False, true d. d. False, false
111. 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
112. This is an obligation with a resolutory condition
a. I'll give you P10,000 if you pass the 2023 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, 2022
d. I'll give you P10,000 if A dies of TB

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113. 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
114. 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
EXTINGUISHMENT OF OBLIGATIONS
115. When is there no loss of the thing due?
a. When the object perishes
b. When it is in possession of another person
c. When it goes out of commerce
d. When it disappears in such a way that its existence is unknown or it cannot be recovered
116. A owes B P10,000. When the debt matured B told A that she need not pay the debt since B is condoning
it. A in turn expressed her gratitude. The debt has been extinguished by
a. Remission b. Novation c. Compensation d. Confusion
117. Novation which changes the object and parties of the obligation
a. Real b. Personal c. Mixed d. Partial
118. Expromission, delegacion or subrogating a third person in the right of the creditor
a. Real b. Partial c. Personal d. Mixed
119. A deposited with B 100 cavans of palay valued at P10,000. A however, is indebted to B for P10,000 which
is already due. When A is withdrawing the palay. B refuses to deliver, claiming compensation. Is B correct?
a. Yes, both obligations are due
b. No, because B's obligation arose from a contract of deposit
c. Yes, considering that the value of the palay is equal to the amount of A's obligation
d. No, because there was no stipulation allowing compensation
120. If the obligation is payable in foreign currency, which is correct?
a. The obligation is void
b. The creditor can compel the debtor to pay in foreign currency as per agreement
c. The obligation is valid, but the stipulation is void
d. The stipulation and the obligation are void
121. A period with a resolutory effect
a. I will support you if A dies c. I will support you if A dies of TB
b. I will support you until A dies d. I will support you beginning Jan. 1 of next year
122. Novation which changes the parties to the obligation
a. Real b. Personal c. Mixed d. Partial
123. Substitution of debtor where the initiative comes from the debtor
a. Expromission b. Delegacion c. Subrogation d. Novation
124. Not a requisite of cession in payment
a. Complete or partial insolvency
b. More than one debt
c. One debtor and one creditor
d. Abandonment of all debtor's property not exempt from execution
125. The designation of the debt to which should be applied a payment made by a debtor who
owes several debts in favor of the same creditor
a. Dation in payment c. Application of payment
b. Tender of payment d. Payment by cession

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126. A obliges himself to give B a specific car on Jan. 7, 2023. On Jan 2, 2023, C burned the car
which A promised to deliver to B, which is correct?
a. A's obligation to B is converted to monetary obligation
b. A should file an action against C for the value of the car plus damages
c. B can file an action against A for the value of the car plus damages
d. B can file an action against C for the value of the car plus damages
127. Upon the proposal of a third person, a new debtor substituted the original debtor without the latter's consent.
The creditor accepted the substitution. Later, however, the new debtor became insolvent and defaulted in
his obligation. What is the effect of the new debtor's default upon the original debtor?
a. The original debtor shall pay or perform the obligation with recourse to the new debtor
b. The original debtor remains liable since he gave no consent to the substitution
c. The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part
d. The original debtor is freed of liability since novation took place and this relieved him
of his obligation
128. 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 b. Consignation c. Datio in solutum d. Application of payment
129. A makes a check payable to bearer and gives the check to C, who gives it to D who finally gives it to
A. The obligation of A is extinguished by
a. Merger b. Compensation c. Novation d. Prescription
130. A owes B P10,000. C, a friend of A approaches B and tells him "I will pay you what A owes you. From
now on consider me your debtor, not A. A is to be excused. If B agrees, there is
a. Novation b. Subrogation c. Delegacion d. Expromission
131. A is the owner of shares of stock of ABC Bank amounting to P100,000. Later, A borrowed money from
the bank amounting to P90,000 with interest thereon at 6% per annum. The debt was to be paid in
installments. One of the conditions of the debt contract is that in case of the debtor's default in the
payment of any of the installments as they become due, the entire amount or the unpaid balance thereof
will become due and payable on demand. The defendant A defaulted in the payment of several
installments and plaintiff bank brought this action to recover the unpaid balances. A pleaded
compensation. Which is correct?
a. A is allowed to avail of compensation
b. There can be no compensation because A and ABC are not debtors and creditors of each other
c. Compensation is allowed only up to P90,000 plus interest
d. Compensation is allowed only up to P90,000 without interest
132. A owes B P10,000. A proposed to B that C will pay A's debt and that A will be released from all liabilities.
B and C agreed to the proposal. Later, when B tries to collect from C, he finds out that C is insolvent. It
was proved that at the time of delegacion, C was already insolvent but this was not known to A, neither
was the insolvency of public knowledge. Is A still liable?
a. Yes, because there is delegacion
b. No, because there is delegacion
c. Yes, because the initiative came from A
d. No, because the insolvency was neither of public knowledge nor known to A at the time he delegated
his debt
133. The substitution or change of an obligation by another, which extinguishes or modifies the first, either
changing its object or principal condition or substituting another in the place of the debtor, or subrogating
a third person in the rights of the creditor
a. Compensation b. Merger c. Prescription d. Novation
134. A and B entered into a contract whereby A was to give B P200,000. Later they novated the contract by
stipulating that instead of cash A would give a particular car. Subsequently the car was destroyed by a
fortuitous event. Which is correct?
a. Novation is not allowed because the things due are not of the same kind
b. A is liable to pay P200,000, the amount of the old obligation
c. The original obligation is extinguished but not the obligation to deliver the car
d. The original obligation and the obligation to deliver the car are both extinguished

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135. A method of novation caused by the replacement of the old debtor by a new debtor, where the old debtor
has proposed to the creditor and which replacement has been agreed to by said creditor and by said new
debtor is
a. Novation b. Delegacion c. Expromission d. Quantum meruit
136. There is compensation
a. A in his capacity as guardian of B is a creditor of C. C in turn is a creditor of A who owes him a
personal debt.
b. A, debtor of two partners is a creditor of the partnership.
c. A owes B P10,000 payable May 31, 2023. B owes A P10,000 payable on June 30,
2023. If today is May 31, 2023.
d. A owes B a fountain pen and B owes A also a fountain pen. Both debts are due.
137. The expenses of consignation when properly made, shall be charged against the
a. Debtor b. Creditor c. Third person d. Debtor and creditor
138. The transfer to a third person of all the rights appertaining to the creditor including the right to proceed
against guarantors, or possession of mortgages, subject to any legal provision or modification that may be
agreed upon
a. Novation b. Delegacion c. Expromission d. Subrogation
139. A owes B P10,000. Later A paid B P7,000 leaving a balance of P3,000. C, a suitor of A and
intending to surprise A, paid B the sum of P10,000 thinking that A still owed B that amount. C
did this without knowledge of A. Which is correct?
a. C can recover P10,000 from A c. C can recover P10,000 from B
b. C cannot recover anything from A d. C can recover P3,000 from A
140. Whoever pays for another without the knowledge or against the will of the debtor
a. May demand from the debtor what he has paid
b. May not recover anything from the debtor
c. May recover only insofar as the payment has been beneficial to the debtor
d. May recover from the debtor what he has paid plus damages
141. 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
142. I. In delagacion, the insolvency of the new debtor will not revive the original debtor's obligation.
II. In expromission, the insolvency of the new debtor may at times revive the original debtor's obligation.
a. True, true b. True, false c. False, true d. False, false
143. I. Condonation or remission is generally gratuitous
II. Proof of actual damages suffered by the creditor is not necessary in order that the penalty in an
obligation with a penal clause may be demanded.
a. True, true b. True, false c. False, true d. False, false
144. 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 a 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
145. 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

END

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