University of Caloocan City

Mock Departmental Exams

Obligations and Contracts

1. I. An obligation is a power, privilege, or immunity guaranteed

under a constitution or decisional law, or recognized as a result
of long usage, constitutive of a legally enforceable claim of one
person against the other.
II. For every right enjoyed by any person, there is a
corresponding obligation on the part of another person to respect
such right
a. Only I is true b. Both statements are
true
c. Only II is true d. Both statements are
false

2. X is the driver of a passenger bus which is owned and operated by

Y. While X is driving the bus, it met an accident through his
negligence where P, a passenger, was injured. X is liable to P
for damages which arises from:
a. Law b. Contracts
c. Quasi-contracts d. Crime

3. Which of the following is the best description of “condition

precedent?”
a. A term in a contract, the consequences of breach of which
cannot be determined until after the breach has occurred
and the seriousness of the effects of the breach cannot be
ascertained
b. A term in a contract which provides that the contract will
terminate on the happening of a particular event
c. A term in a contract, non-performance of which may result
in rescission of the contract and/or damages to the
plaintiff
d. A term which must be satisfied before a contract come into
existence

4. The following statements is the best description of the remedy of

“specific performance”
a. The injured party is entitled to set aside the contract
and be restored to their pre-contractual position
b. The party at fault is restrained from breaching the
contract or from committing a wrongful act
c. The party at fault is directed to carry out their
obligations under the contract
d. The party at fault has unjustly obtained a benefit at the
injured party’s expense and is ordered to restore it to
the injured party
 University of Caloocan City
Mock Departmental Exams
Obligations and Contracts

5. I. The recission has an effect of abrogating the contract in some

parts.
II. When a decree for recission is handed down, it is the duty of
the court to require both parties to surrender that which they
have respectively received and to place each other as far as
practicable in his original situation.
a. Only I is true b. Both statements are true
c. Only II is true d. Both statements are false

6. An action that must be brought within ten years from the time the
right of action accrues:
a. Upon a quasi-contract b. Upon an obligation
created by law
c. Upon a quasi-delict d. Upon an oral contract

7. When the service has become so difficult as to be manifestly

beyond the contemplation of the parties, the obligor may also be
released therefrom, in whole or in part.
a. Doctrine of force majeure b. Doctrine of unforeseen
events
c. Doctrine of fortuitous d. Doctrine of foreseen
events events

8. Pearl offered to sell to Hanien purported diamond ring which

actually was a stone of inferior quality. Believing it to be a
genuine diamond ring, Hanien bought and paid for the ring. If
later on, Hanien discovers the misinterpretation, Hanien may:
a. Sue for damages alone because of dolo causante
b. Sue for rescission
c. For annulment because of dolo incidente
d. For annulment because of dolo causante

9. Which of the following statements is not correct?

a. A solidary creditor can assign his right even without the
consent of the other creditors
b. Remission of the debt by any of the solidary creditors
shall extinguish the obligation
c. If two or more solidary debtors offer to pay, the creditor
may choose which offer to accept
d. The debtor may pay any of the solidary creditors but if
any demand has been made by one of them,
e. payment should be made to him
 University of Caloocan City
Mock Departmental Exams
Obligations and Contracts

10. If through the acts of the debtor cannot make a choice

according to the terms of the alternative obligation, the debtor
may:

a. Rescind the contract b. Rescind the contract or

ask for damages, at the
debtor’s option
c. Rescind the contract with d. All of the above
damages

11. D obtained from ABC Bank a loan of P12,000,000 at

the end of 10 years. Before maturity, an extraordinary
inflation supervened causing the value of the debt to
fall to P4,000,000 on the date of maturity. On due
date, D must pay ABC Bank:
a. P12,000,000
b. P4,000,000
c. P36,000,000
d. P3,000,000
12. A, husband and B, wife are legally separated. By order of
the court, which decreed the legal separation, A is obliged to
give a monthly support of P50,000 to B payable in advance within
the first five days of the month. B owes A P50,000 by way of
loan. On the other hand, A has not yet given B support of P50,000
for the preceding month and another P50,000 of the present month.
All the debts are already due. Based on the foregoing, which of
the following statements is incorrect?
a. If B demands her support for the preceding month, A may set up
compensation as regards the loan that B owes him
b. If B demands her support for the current month, A may claim
compensation as regards the loan that B owes him
c. If A demands payment of the loan, B may set up compensation as
regards her support for the preceding month that A owes her
d. If A demands payment of the loan, B may set up compensation as
regards her support for the current month that A owes her

13. A has three outstanding due and demandable obligations to B

consisting of: (1) Accounts Payable in the amount of P1,000,000;
(2) Notes Payable in the amount of P1,000,000 which is solidary
debt with G; (3) Loans Payable with 10% interest in the amount of
P1,000,000; and (4) Mortgage Payable in the amount of P1,000,000
which is secured by real estate mortgage over A’s land. A paid
P1,000,000 to B and designated the payment to the accounts
payable. In which debt shall the payment be applied by B?
A. Accounts payable
B. Notes payable
 University of Caloocan City
Mock Departmental Exams
Obligations and Contracts

C. Loans payable
D. Mortgage payable

14. Under the law, anything paid or delivered before the arrival
of the suspensive period the obligor being unaware of the period,
may be recovered with the fruits and interest. Which is the
exception?
a. The obligor is not aware of the period.
b. The obligor delivered before the period.
c. The period is for the benefit of the creditor and debtor.
d. The obligation involved is an obligation to do and not to
do.

15. Which of the following condonations will NOT extinguish the

debtor’s obligation?
a. The condonation is in a public instrument. The acceptance
is made in a private instrument. The condonation involves
a television set worth P20,000.
b. The condonation is in a public instrument. The acceptance
is made orally. The condonation involves a computer
printer whose value is P4,000.
c. The condonation and the acceptance are in a public
instrument. The condonation involves a parcel of land.
d. The condonation and the acceptance are made orally with
the creditor delivering to the debtor simultaneously the
promissory note amounting to P10,000.

16. Lester and Jason both undertook a contract to deliver to

Brad 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 Lester and Jason 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 Lester and Jason joint or solidary?
A. Neither solidary nor joint since they cannot waive the
defense of fortuitous event to which they are entitled.
B. Solidary or joint upon the discretion of Brad.
C. Solidary since Lester and Jason failed to perform their
obligation to deliver the motor boat.
D. Joint since the conversion of their liability to one of
indemnity for damages made it joint.
17. Gelocakes borrowed money from a bank, secured by a mortgage
on the land of Seanibells, his close friend. When the loan
matured, Seanibells offered to pay the bank but it refused since
Seanibells was not the borrower. Is the bank’s action correct?
a. Yes, since Gelocakes, the true borrower, did not give her
 University of Caloocan City
Mock Departmental Exams
Obligations and Contracts

consent to Seanibells’ offer to pay.

b. No, since anybody can discharge gelocakes obligation to
his benefit.
c. No, since Seanibells, the owner of the collateral, has an
interest in the payment of the obligation.
d. Yes, since it was Gelocakes who has an obligation to
thebank.
18. First Statement: In a solidary obligation, the creditor may
proceed against any one of the solidary debtors or some or all of
them simultaneously.
Second Statement: A solidary debtor may, in actions filed by the
creditor, avail himself of all defenses which are derived from
the nature of the obligation and of those which are personal to
him, or pertain to his own share.
Third Statement: Payment by a solidary debtor shall not entitle
him to reimbursement from his co-debtors if such payment is made
after the obligation has prescribed or become illegal.
Fourth Statement: Solidarity may exist even if the debtors are
not liable in the same manner.
a. Only statement 1 is true b. Only statement 3 is true
c. Only statement 2 is true d. All 4 statements are true
19. Lennie 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. Lennie suffered the 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 quasi-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 Lennie 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 the quasi-delict presupposes the absence of a
pre-existing contractual relation between the parties
20. Max owed Caroline P1 million due on may 1, 2021 but failed
to pay her on due date. Caroline sent a demand letter to Max
giving her 5 days from receipt within which to pay. Two days
after receipt of the letter, Max personally offered to pay
Caroline in manager's check, which was fully funded and debited
already from her account, but the latter refused to accept the
same. After the lapse of the 5 days, is the obligation considered
extinguished?
 University of Caloocan City
Mock Departmental Exams
Obligations and Contracts

A. Yes, since the refusal of Caorline has no basis to the

extinguishment of the obligation
B. No, since tender of payment even in cash, if refused, will
not discharge the obligation without proper consignation
in court
C. Yes, since Max tendered payment of the full amount due
D. No, since the manager’s check is not considered legal
tender
21. Yuji Itadori, who is indebted to Satoru Gojo for P100,000,
sold his only remaining property to Megumi Fushiguro. There would
be a presumption that the sale was in fraud of Gojo:
a. If yuji did not reserve sufficient properties to pay all
debts contracted before the date
b. If Yuji did not reserve sufficient properties to apy all
debts contracted before and after the sale
c. When there has been some judgement obtained by Gojo issued
against Yuji before the sale
d. When there has been more judgement issued against Yuji
before the sale even if not obtained by Gojo
22. A owes B P10,000. A proposed to B that C wil 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 the
delegaciom, C was already insolvent but this was not known to A,
neither was the insolvency of public knowledge. Is A still
liabile?
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
23. There being no express stipulation and if the undertaking is
to deliver a determinate thing, the payment shall be made
a. At the domicile of the debtor
b. At the domicile of the creditor
c. Wherever the thing might be at the moment the obligation
was constituted
d. Wherever the thing might be at the moment the obligation
is to be fulfilled
24. On January 15, 2023, Pearl, Hanien, Rashiel, Karl, and Sean
made themselves solidarily indebted to Angelo for P100,000
payable on February 20, 2023. On February 20,2023, Angelo
demanded payment from Pearl, but the latter refused to pay on the
following grounds:
i. Hanien is only 16 years old
ii. Rashiel’s share has been condoned by Angelo
iii. Karl is insolvent
 University of Caloocan City
Mock Departmental Exams
Obligations and Contracts

iv. Sean was given by Angelo an extension of 6 months without

the consent of the four co-debtors.
How much can Angelo collect from Pearl on February 20. 2023?
a. 80,000
b. 60,000
c. 40,000
d. 20,000
25. The prescriptive period of the right to file an action based
on quasi-delict, quasi-contract, oral contract and written
contract?
a. 4 years. 6, years, 6 years and 10 years
b. 4 years, 5 years, 6 years, and 10 years
c. 1 year, 4 years, 6 years, 10 years
d. 4 years, 4 years, 6 years, 10 years
 University of Caloocan City
Mock Departmental Exams
Obligations and Contracts

1. A 6. C 11. C 16. D 21. D

2. D 7. B 12. B 17. C 22. D
3. D 8. B 13. A 18. D 23. C
4. C 9. A 14. D 19. A 24. C
5. B 10. B 15. D 20. D 25. A