QUIZ ON OBLIGATION –PART I

1. Whenever in an obligation’s designated, it is presumed to have been established for the benefit of:

a. Both the creditor and debtor c. The debtor

b. The creditor d. The third party

2. A owes B P10, 000. C pays B P5, 000. Now B and C are the, creditors of A to the amount of P5, 000
each.

Suppose A

has only P5, 000.Which is correct:

a. B and C should divide the P5, 0000 equally c. A may choose whom to pay

b .C should be preferred d. B Should be preferred

3. X is under obligation to deliver Y’s car to the latter. However before delivery Z destroys the car. Which
one of the

Following is correct?

a. X’s obligation to give the car to Y extinguished

b. X is allowed to recover from Z

c. Y has the right to bring an action against Z

d. X is not obliged to give Y an equivalent value of the car

4. XYZ are solidarily liable to A for P30, 000 which matures on July 1, 2001.On May 1, 2001, X paid A for
the whole amount of debt. If on December 1, 2001, X will be reimbursed by Y, the latter will liable for:

a. P10, 000 with the interest from July 1, 2001 to December 1, 2001

b. P10, 000 without interest

c. P10, 000 with interest from May 1, 2001 to July 1, 2001

d. P10, 000 with interest from May 1, 2001 to December 1, 2001

5. A, B and C owe solidarily creditors X and Y P30, 000.X remitted the entire obligation in favor of A. The
effect is:

a. The obligation is not extinguished until a collect from B and C

b. The obligation is not extinguished until Y is paid by X his share of the credit

c. A cannot recover from B and C because remission in his favor extend to the benefit of B and C

d. a can recover from B and C their respective share of the debt

6. When A voluntarily takes charge of the neglected business of B without the latter’s
authority where reimbursement must be made for necessary and useful expense, there is a:

a. Quasi delict c. Negotiorum Gestio

b. Quasi Contract d. Solutio Indebiti

7. When the debtor binds himself to pay when his means will permit him to do so, the obligation is:

a. Conditional c. Simple

b. Pure d. With a period

8. X and Y are solidary debtors of A, B, C and D, joint creditors to the amount of 8, 0000.How much can A
collect from X?

a. A could recover 8,000 from X. A, in turn has to give B, C and D 2,000 each

b. A could recover 4,000 only from X.

c. A could recover 2,000 only from X.

d. A could recover 8,000 from X. A, in turn does not have to give B, C and D 2,000 each

9. A owes B 150,000 due on August 31, 2000. A executed a mortgage in favor of B on A’s building to
guaranty the obligation. On August 10, 2000, the mortgaged building was totally lost due to an
earthquake .On August 12, 2000, B demanded payment from A. Is B’s demand valid?

a. No. The obligation is one with define period, thus the creditor cannot demand fulfillment of the
obligation before it is due.

b. No. The mortgage was extinguished because the object of the contract was lost through a
fortuitous event.

C. Yes. The debt becomes due at once because the guarantee was lost although through a fortuitous
event, unless the debtor can mortgage another property that is equally satisfactory.

d. Yes. The debts becomes due at once because the periods benefits is given solely to the creditor
thereby giving the creditor the right to demand performance even before the due date.

10. X is obliged to give Y a specific car in July 15, 2000. X did not deliver the car on July 15, 2000. On July
20, 2000, an earthquake destroyed the building where the car parked and the car was destroyed .Is X
still liable?

a. Considering that no demand to deliver was made by Y and the specific thing was lost due to
fortuitous event, hence the obligation is extinguished.

b. No. The obligation is extinguished, even if the debtor

c. Yes X is already in legal delay, thus obligation to deliver the lost specified thing is converted into
monetary claim for damages.
 d. Yes. The creditor instead demand for a substitute of equivalent value from the debtor

11. In the three (3) of the following cases payment by the debtor is not recoverable .Which is the
exception?

a. The obligation was not yet due and demandable but debtor believed it was already due and
demandable

b.The payment is only for interest and credited to the proper period

c. The advance payment were made by both parties reciprocally

d. The debt was aware of the period

12. C is the creditor of D in the amount of P50, 000. G is the guarantor of D. D paid C partially with P
20,000. A not knowing The partial payment of D and against the will of D, paid C the amount of P50, 000.
What is the effect of this payment in the obligation?

a. The obligation is extinguished. A cannot recover any amount from D, But A can demand
reimbursement from G the amount of P50, 000

b. The obligation is extinguished. A can demand P30, 000 from D because this amount benefited D or
A having been subrogated into the rights of C, can proceed against G.

c. The obligation is not extinguished. A’s payment being against the will D does not extinguish the
obligation

d. The obligation is extinguished. A can demand P30, 000 from D, but if D cannot pay, A cannot
ordinarily proceed against guarantor G because A is not entitled to subrogation

13. This is payment in kind:

a. Consignation c. Dation in payment

b. Payment by cession d. Application for payment

14. A, B, C and D are joint creditors of E and F, solidary debtors in the amount of P40, 000.00.How much
can A, B and C collects from E?

a. A, B, and C could collect P20, 000.00 from E

b. A, B, and C could collect P30, 000.00 from E

c. A, B, and C could collect all the P40, 000.00 from E

d. A, B, and C could collect P20, 000.00 from E and P10, 000 from F.

15.A obliged himself to pay X 10,000 in 30 days plus a penalty of 20,000 if he fails to pay the obligation
in due time. A failed to pay the obligation in 30 days. X can demand from A.

a. The principal of P100, 000 plus P20, 000 penalty

b. The principal of P100, 000 plus P20, 000 penalty, plus legal interest
 c. The principal of P100, 000 plus P20, 000 plus legal interest

d. The principal of P100, 000 plus P20, 000 penalty, plus legal interest, plus damages

16. A signs a promissory note and binds himself to pay X P100, 000 plus 15% per annum interest on June
30,2000.

a. Before June 30, 2000, X can demand payment

b. If on June 30, 2000 A is paying X the latter refuse the payment

c. A compel creditor X to accept payment before June 30, 2000

d. Because the period is for the benefit of the debtor and creditor, X can refuse any tendered
payment before June 30, 2000

17. A owes X P50, 000 payable on or before June 30, 2000. S who is not a party to the contract and
without consent and against the will of A paid X the P50, 000 on April 1, 2000 when the prevailing rate
of interest was 12% per annum

a. S can ask reimbursement from A in the amount of P50, 000 plus 12% interest from April 1, to June
30, 2000.

b. S can ask reimbursement from A in the amount of P50, 000

c. S cannot ask reimbursement from A because the payment by S without the consent and against
the will of A.

d. S can ask refund from X because the payment by S was against the will of A.

18. When the obligation is extinguished because of the passage of time, this is:

a. fulfillment of resolutory c. prescription

b. arrival of resolutory period d. rescission

19. When the debtor abandons or transfers all his properties to his creditors so that the creditors may
sell the properties and out of the net proceeds the creditors recover their claims, this is called

a. dacion en pago c. payment by cession

b. tender payment and consignation d. remission

20. When the period is “on or before a date”, the debtor has the benefit of the period. This benefit is
lost and the obligation becomes demandable when

a. the debtor attempts to ascond

b. after contracting the obligation, the creditor suspects the debtor of becoming insolvent

c. the guarantee given by the debtor is not acceptable to the creditor

d. demand by creditor could be useless

21. Unless the law or stipulation of the parties requires another standard care, the obligation to give a
thing carries with the Obligation to take care with:

a. Extra-ordinary diligence c. diligence of a good father of a family

b. degree of care agreed upon by the party’s d. diligence of a good family of a father

22. A entered into a contract with B by which A promised to deliver at price stipulated in the contract.
Such delivery is to made on February 14, 2001 with penalty in case of default. In this case, no further
demand by B on A is necessary to consider A in delay because:

a. time is of the essence of the contract c. the demand would unless

b. The obligation is expressly so provides d. answer not given

23. One of the following shall produced effect of payment of debts

a. delivery of check c. delivery of a promissory note

b. tender of Central Bank notes d. dacion en pago

24. If the creditor to who tender of payment has been made refuses without just cause to accept it,
debtor shall be released from responsibility by:

a. assignment of property c. adjudication or pacion en pago

b. consignation of the thing or sum due d. condonation

25. A executes a promissory note in favor of B who subsequently indorsed it in favor of A. The obligation
to pay the promissory is thereby extinguished because there is:

a. confusion or merger c. remission

b. novation d. compensation

26. The distinction between conventional subrogation and assignment is that in conventional
subrogation:

a. it is a mere cession of right

b. an obligation is extinguished and another appears

c. the same obligation, without being extinguished, is transferred to another

d. the debtors consent is not necessary

27. A promissory note A and dated March 15, 2000 is worried as follows: “I promise to pay B the sum of
Fifty Thousand Pesos (P50, 000) provided that if she should fall I the October, 2000 CPA Examination,
she shall return to me the said amount”. The above note gives rise to an obligation with:

a. suspensive condition c. resolutory condition

b. casual condition d. answer mot given

28. A and B to deliver a particular car valued at P100,000 to C on or before September 15,2000 .
September 15, 2000 came and upon demand by c from delivery from A and B, A was willing to deliver
but B refused to deliver. In this case at bar:

a. An action for specific performance will lie against both A and B.

b. Both A and B shall be liable for 50,000 each with damages

c. B shall be liable for P50, 000 without damages and A shall be liable for P50, 000 damages

d. C can demand delivery of the car from A or B

29. A, B and C owed a solidum P15,000 to D as evidenced by a promissory note due on September
30,1990. The note

prescribed on October 1, 2000. On October 10, 2000 A paid D. In this case, A is:

a. entitled to collect P5, 000.00 each from B and C

b. not entitled to reimbursement from his co-debtors for the shares of the latter

c. entitled to recover from D

d. answer not given

30. This a promissory note “I promise to pay A, B and C the sum of P18, 000.”(Signed) D, E and F

a. F is obliged to pay C P6,000.00 c. F is obliged to pay C P12,000.00

b. F is obliged to pay C P2, 000.00 d. F is obliged to pay C P18, 000.00

31. A and B are solidary debtors of C,D,E and F joint creditors in the amount of 20,000.How much can C
collect from A?

a. C could collect P2, 500.00 from A

b. C could collect from A P10, 000.00.C is then obliged to give P2, 500 each to D, E and F

c. C could collect P5, 000 from A

d. C could collect the whole P20, 000 from A but will in turn give P5, 000 each to D, E and F

32. A owes B who has two (2) legitimate children, 50,000 payable on December 31, 2000

a. If A dies before December 31, 2000, B cannot collect from A the heirs of A

b. If A dies before December 31, 2000, B cannot collect from A the heirs of A

c. If dies, his two (2) legitimate children cannot recover from A his obligation

d. If both A and B die, the heirs of B can collect from heirs of A.

33. If the obligor binds himself to perform his obligation as soon as “he shall have obtained the loan
“from a certain bank this obligation is:

a. with a term c. suspensive

b. conditional d. resolutory

34. It refers to a joint obligation:

a. One in which debtor is liable for the entire of obligation, and each creditor is entitled to demand
the whole obligation

b.one in which either one of the parties is indispensable and the other is not necessary

c. one in which of the obligation is resolutory condition of the other, the non-fulfillment of which
entitles the other party to rescind the contract

d. one which each of debtors is liable only for a proportionate part of the debt and each creditor are
entitled only for a proportionate part of the credit.

35. It presupposes not that the obligor is bale, ready and willing but more so, in the act of performing his
obligation

a. promissory note c. bill of exchange

b. tender of payment d. obligation to sell

36. Which of the following is not considered as quasi-contract?

a. Solutio Indebiti

b. when the third person, without knowledge of the debtor, pays the debt

c. negotiorum gestio

d. reimbursement due the person who saved property during fire or storm without the knowledge of
the owner

37. D1, D2 and D3 oblige themselves solidarily to give Ca specific car valued P12, 000. On due date
demanded delivery but the debtors failed to deliver .The next day, while D1 still in possession of the car,
it got lost due to fortuitous event. The right of C is

a. None, obligation is totally extinguished

b. proceed against any of the debtors for the value and damages

c. proceed against D1 only, because he is the one in possession at the time it was lost
38. In tender and consignation: if after consignation is made, the creditor allow the debtor to withdraw
the thing deposited in court, which of the following is incorrect?

a.co-debtors, guarantors and securities are released from the obligation unless they consented

b. the obligation remain to subsist

c. the obligation is extinguished

d. none of the above

39. A, B and C are joint debtors of joint creditors W, X, Y and Z in the amount of P300, 000. How much
can W and X

collect from B?

a. P 75,000 c. P 150,000

b. P 100,000 d. P 50,000

40. D owes C 10,000 payable on December 25. Later, D forced C to sign a promissory note for 10,000
payable on December 25. If all the other requisites of compensation are present, are both debts
extinguished?

a. Yes, under the legal compensation

b.No, B’s consent was obtained by force

c. yes, with approval of the court

d. not given

41. X has been missing for sometime leaving for no one to manage his properties A and B jointly took
charge of the management thereof. However, due to the fault of A, the properties of X were damaged
The liability therefore to X for damages shall be:

a. only A shall be liable

b. both shall be jointly liable

c. both shall be solidarily liable

d. they are not liable since at fault for having abandoned his properties

42. X by mistake delivered to A and Ba sum of money which should have been delivered to C
and D. X now demands the return of the same from A and B. The liability of the latter for the sum of
money to which they are not entitled shall be:

a. A and B shall be liable solidarily

b. A and B shall be liable jointly

c. They are not liable for having received the money in good faith

d. X has not the right to recover as he was negligent in the delivery of the money
43. A owes B a sum of money evidenced by promissory note which has prescribed without the
knowledge of A, paid B his debt. Later A reimbursed X for the payment of the latter to B although he has
no obligation to do so. After payment A now wants to recover hi payment to X on the ground that he
was not obliged to reimburse him. Which of the following is not correct?

a. A can recover his reimbursement to X to prevent unjust enrichment on X’s part at the expense of
A.

b. A cannot recover because he has civil obligation to reimburse X for the latter paid his debt to B

c. A cannot recover because he partakes of a natural obligation

d. A cannot recover since there was reimbursement by mistake

44. In which of the following instances does legal subrogation not apply?

a. when a creditor pays another creditor who is preferred, even without the debtor’s knowledge

b. when the third person, not interested in the obligation, pays with the express or tacit approval of
the debtor

c. when a third person pays the creditor without knowledge or against the will of the debtor and yet
entitled to beneficial reimbursement

d. when, even without knowledge of the debtor, a person interested in the fulfillment of the
obligation pays, without prejudice to the effects of the confusion as to the latter’s share.

45. A bought biscuits from a grocery store and was hospitalized due in food poisoning as a result of toxic
substance contained in the biscuits sold to retailers by the Ace Foods Inc. A is now suing the said
producer corporation for damages

Decide:

a. A has no right to claim damages from the producer because there was no contract between them.

b. Ace Foods Inc is not liable to A because the latter was negligent in eating the biscuit despite the
presence of harmful substance therein.

c. A must claim damages from the grocery store and not from the producer since the grocery was the
one which sold the poisoned food to A.

d. Ace Food Inc is liable for damages due to quasi-delict to its negligence in the preparation of the
biscuits thus causing to A.

46. Acceptance of commercial document is equivalent to payment:

a. The check has been received as payment

b. The check has become valueless because of the creditors fault

c. The check is a managers or cashier’s check

d. The promissory note is used as payment

47. The debtor shall lose every right to make use of the period except:

a. When after the obligations has been contracted he becomes insolvent, unless he gives a guaranty
or security for the debt

b. When does not furnish a guaranty or security for the debt

c. When the debtor attempts to ascond

d. When he violates any undertaking consideration of which the creditor agreed to the period.

48. When the debtor binds himself to pay when his means permit him to do so is one:

a. With a condition is dependent upon the debtors will

b. With resolutory period upon the debtors will

c. With period dependent upon the debtors will

d. With the condition to be fixed by court

49. D owes C P1M. G is the guarantor. A stranger S paid C the debt D without the knowledge of the
latter. In this

case:

a. If D fails to pay S, the latter can compel G to pay him;

b. If G pays S, the former can demand reimbursement from D;

c. S cannot compel G to pay him;

d. D has no obligation to reimburse S because he paid without the consent of D.

50. D owes C P1M. A proposed to B that C will pay A’s debt and that he will be released from all liabilities
not him. B and C agreed to the proposal. Later when B tried to collect from C, he found out that he was
insolvent

a. A is no longer liable to B because of the substitution of C in his place if he had no knowledge of the
insolvency despite it being of public knowledge;

b. A is no longer liable to B even if he had knowledge of C’s insolvency despite it being of public
knowledge

c. A still liable to b because he was the one who proposed to B that C shall substitute to him as
debtor

d. A is longer liable to b despite the insolvency of C unless said was of the public knowledge or known
to him when he delegated the debt.