OBLIGATIONS AND CONTRACTS

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

a. passive subject, debtor or obligor.
b. active subject, creditor, or oblige
c. efficient cause.
d. demand

2. Obligations may arise from any of the following, except:

a. Contracts
b. Quasi-contracts
c. Law
d. Prestation

3. 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:
a. Extra-ordinary diligence
b. Diligence of a father of a good family.
c. Diligence of a good father of a family.
d. Good diligence of a good father of a family.

4. The creditor has a right that is enforceable against a definite passive subject. The right is
known as:
a. Personal right
b. Real right
c. Natural right
d. Civil right

5. Demand must be made on the due date of the obligation in order for delay to exist in one
of the following cases. Which is it?
a. When it was stipulated by the parties that demand need not be made.
b. When the law provides that demand need not be made.
c. When the obligation does not indicate whether demand must be made or not in
due date.
d. When time is the essence of the contract.

6. The following are the remedies of the creditor to pursue his claims against the debtor,
except to:
a. Pursue the property owned and in possession of the debtor.
b. Exercise all the rights and bring all the actions of the debtor.
c. Impugn the acts which the debtor may have done to defraud his creditors.
d. Compel the debtor to perform the service in obligations to do.

7. D borrowed P50,000 from C. C dies before he has collected the debt leaving S, his son,
as heir. Which of the following statement is correct?
 a. S can collect from D although D and C did not agree that the credit right will
pass on to the heirs of C.
b. S cannot collect because the credit right is personal to C.
c. S can collect if D and C agreed that the credit right will pass on the heirs of C.
d. S cannot collect because the law prohibits the transmission of the credit right.

8. D is obliged to give C P10,000.00 if X dies. This is an example of:

a. An obligation with a suspensive condition.
b. An obligation with a resolutory condition.
c. An obligation with a period.
d. A pure obligation.

9. D is obliged to give C a specific watch, a specific ring, or a specific bracelet. The parties
agreed that C will have the right to choose the thing which will be given to him. Before C
could make his choice, the watch and the ring are lost through D’s fault, successively.
What is the right of C?
a. C may choose the delivery to him of the bracelet, or the price of the watch or
the price of the ring plus damages.
b. C cannot choose the price of the watch or the price of the ring because the said
objects have already been lost.
c. C can only choose to have the bracelet because anyway, D can still perform his
obligation.
d. Price of the ring which was the last item that was lost plus damages.

10. The following obligation are divisible except an obligation:

a. To give determinate things.
b. Which has for its object the execution of a certain number of days of work.
c. Which has for its object the accomplishment of work by metrical units.
d. Which by its nature is susceptible by its performance.

11. D borrowed from C P50,000.00. The obligation is secured by a chattel mortgage on D’s
Toyota car. Subsequently, D paid C P20,000.00. unknown to D, T, a third person, pays
C P50,000.00 believing that D still owed C such amount.
a. T can recover P50,000.00 from D. if D cannot pay, T can foreclose the mortagage on
D’s Toyota car.
b. T can recover nothing from D because he paid C without the knowledge and consent
of D.
c. T can recover P30,000.00 from D. If D cannot pay, T can foreclose the mortgage on
D’s Toyota car.
d. T can recover P30,000.00 from D. if D cannot pay, T cannot foreclose the
mortgage on D’s Toyota car.

12. D obtained from ABC Bank a loan of P12, 000,000.00 payable at the end of 10 years.
Before maturity, an extraordinary inflation supervened causing the value of the debt to
fail to P4,000,000.00 on the date of maturity. On due date, D must pay ABC Bank:
 a. P12,000,000.00
b. P4,000,000.00
c. P36,000,000.00
d. P3,000,000.00

13. The delivery and transmission of ownership of a thing by the debtor to the creditor as an
accepted equivalent of performance is known as:
a. Payment by session
b. Dation in payment
c. Application
d. Consignation

14. M owes P10,000.00. the obligation is evidenced by a promissory note. Subsequently, P

assigned the note to A, A to B, B to C, and C back to M. the obligation of M is
extinguished by:
a. Compensation
b. Confusion
c. Condonation
d. The obligation is not extinguished because there was no payment.

15. Henry, husband, and Wilma, wife, are legally separated. By order of the court which
decreed the legal separation, Henry is obliged to give a monthly support of P10,000.00
to Wilma payable within first five days of the month. Wilma owes Henry P10,000.00 by
way business loan. On the other hand, Henry has not yet given Wilma’s support of
P10,000.00 for this month. Both debts are already due. Which of the following statement
is correct?
a. Both debts are extinguished by legal compensation because both are already due.
b. Wilma may claim compensation but not Henry.
c. Henry may claim compensation but not Wilma.
d. Neither one may claim compensation because the debts are not of the same kind.

16. D borrowed P50,000.00 from C. Subsequently, D proposed to C that T would assume

his (D’s) debt. C accepted the proposal of D. the substitution of the debtor is known as:
a. Expromision
b. Delegacion
c. Tradition
d. Dacion en pago

17. On July 1, 2015, D obliged himself to give C P50,000.00 if C will marry X on or before
December 31, 2015. The condition of the obligation is a:
a. Positive condition
b. Negative condition
c. Joint condition
d. Impossible condition

18. D owes C P6,000.00. No date for payment was stipulated by the parties.
 a. C cannot require D to pay because there is no date for payment.
b. C can require D to pay at any time.
c. D is not liable to C because the obligation is void there being no date of payment
d. D is not required to pay unless C goes to court and asks the court to fix a period for

the payment.

19. The distinction between merger and compensation is that in merger:

a. The two debts may be payable at difference places.
b. Two persons are in their own right debtors and creditors of each other.
c. The debtor and creditor may agree on the set-off of debts that are not yet due.
d. The debtor and the creditor refer to only one person.

20. Legal compensation shall not be proper in three of the following cases. Which is the
exception?
a. Commodatum
b. Civil liability arising from the criminal offense
c. Gratuitous support
d. Bank deposit

21. Which of the following statements does not pertain to dacion en pago. Which is it?
a. Ownership of the thing is transferred to the creditor.
b. The debtor must be insolvent
c. It does not affect all the properties of the debtor.
d. It does not require plurality of creditors.

22. A, B and C are solidarily liable to X for P30,000.00. A pays X to whole amount due. C,
however, is insolvent.
a. A alone will bear the share of C who is insolvent since he (A) made the payment.
b. A can collect from B P10,000.00
c. A can collect from B P15,000.00
d. A can demand a refund of P10,000.00 from X pertaining to C’s share since C is
insolvent.

23. D, E and F are solidarily debtors of Y in the amount of P9,000.00. Subsequently, Y

renounced the share of D. D accepted the renunciation of his share. On due date, E
pays Y P6,000.00. E demanded reimbursement from f but F is insolvent. In this case:
a. E may demand the payment of P3,000.00 from D.
b. E may not demand any amount from D because the share of D had already been
renounced or condoned.
c. E may demand P1,500.00 from D representing D’s share in F’s insolvency.
d. E mat demand from D P4,500.00 so that their sharing in total debt is equal.

Items 24 and 25 are based on the following information.

 Dolores borrowed P15,000.00 from Consuelo. On due date, Dolores was not able to pay
but she promised to give Consuelo a specific ring, a specific bracelet, or a specific
necklace, in payment of the debt. Consuelo accepted the offer of Dolores.
24. What kind of obligation is the new obligation of Dolores?
a. Facultative obligation
b. Compound obligation
c. Alternative obligation
d. Simple obligation

25. How was the obligation of Dolores to pay P15,000.00 extinguished?

a. By compensation
b. By novation
c. By confusion
d. By condonation

26. One of the following obligations is not demandable at once. Which is it?
a. X to give his car to Y. No date was fixed by the parties for the date of delivery.
b. X to give his car to Y until Y completes his course in BS Accountancy.
c. X to give his car to Y until Z dies.
d. X to give Y his car should Y enroll in BS Accountancy.

27. M borrowed P5,000.00 from N. the obligation is payable in full after 30 days. In which of
the following cases is M justified in making a consignation of his payment in court?
a. If N refuses to accept the payment in the form of a check which is certified by the
bank to be supported by sufficient funds.
b. If N refuses to accept the payment consisting of P5,000.00 pieces of P1.00 coins.
c. If n refuses to accept the first installment payment in the form of a P1,000.00 bill, M
promising to pay the balance of the debt in 4 equal monthly installments.
d. If N refuses to accept the payment consisting of 250 pieces of P20.00 bills.

28. O executed a promissory note payable to P for P100,000.00. The note, which bears
interest at 2% per month, is payable after 60 days. On the date of maturity, P proceeded
to O’s place to collect but when O demanded the presentation of the promissory note, P
could not present it claiming that it had been lost. O is able and willing to pay the whole
amount due including the interest but he is at a loss of what to do because P does not
have the instrument. On the other hand, if he does not pay the amount due, the interest
on the principal will continue to accrue. If you were O, the remedy that you will likely
avail yourself of is:
a. Dacion en pago
b. Payment by cession
c. Consignation
d. Application of payment

29. A and B are the owners of the adjacent poultry and piggery farms. One day, B got sick
and failed to visit his farm. When A noticed that B was not again around during the
 second day, he himself took care of the animals by feeding them and cleaning the pig
and poultry pens. A did this for the next three days until B returned. A incurred
necessary and useful expenses amounting to P5,000.00 in the process. A for such
expenses which the latter incurred by reason of:
a. Contract
b. Solutio indebiti
c. Negotiorum gestio
d. Quasi-delict

30. A, B and C are obliged to deliver a specific horse to X, Y and Z.

a. A demand made by X against A, B and C is a valid demand against all the debtors.
b. A demand by X, Y and Z against A is a valid demand against all the debtors.
c. If a valid demand is made against all the debtors but the obligation is
converted into a monetary obligation to pay the value of the horse plus
damages.
d. If the debtors default in their obligation because C is insolvent, A and B will be liable
for C’s share of the obligation.
Sales
1. A contract whereby one of the contracting parties obligates himself to transfer the
ownership of and to deliver a determinate thing and the other to pay therefor a price
certain in money or its equivalent is a contract of:
a. Barter
b. sale
c. dacion en pago.
d. Mortgage

2. The following are the essential elements of a contract of sale, except:

a. Consent of the contracting parties
b. Subject matter which should be determinate
c. Price which is certain in money or its equivalent
d. Warranty against eviction and against hidden defects

3. One of the following characteristics of dacion en pago is also a characteristics of a

contract of sale. Which is it?
a. There is pre-existing credit.
b. Obligations are extinguished
c. There is less freedom in fixing the price
d. Ownership of the object is transferred to the other party

4. One of the following is not a requisite of the object of a contract of sale. Which is it?
a. It must be within the commerce of men
b. It must be licit
c. It must be determinate or determinable.
d. Vendor must have the right to transfer the ownership of the thing at the

time of sale.

5. Somera sells to Buenviaje at P50 per gallon 300 gallons of gasoline stored in his
truck’s tankwhich, unknown to the parties, contains 500 gallons gasoline. What is the
status of the contract of sale between Somera and Bermejo?
a. The sale is void because of the quantity available is more than the quantity sold.
b. The sale is valid up to 500 gallons of gasoline Buenviaje must pay for the
additional 200 gallons of gasoline.
c. The sale is valid up to 300 gallons of gasoline Buenviaje becomes the
owner of 3/5 of the whole stock, while Somera becomes the owner of 2/5
thereof
d. The sale is rescissible because Somera will suffer lesion of more than ¼ of the

whole stock.

6. A sum of money paid, or a thing delivered ring to B for P50,000.00. B accepted the
offer and to prove that he was in earnest, he gave S P1,000.00. The parties agreed
 that the delivery of the ring and the payment of the price would be made 30 days
later. On the due date:
a. S may collect from B P50,000.00
b. S may collect from B P 49,000.00
c. S cannot enforce payment because the contract as not reduced to writing
d. S cannot enforce payment because there was no contract of sale yet.

7. Delivery of incorporeal property may be made through any of the following means,
except:
a. Execution of a public document
b. Placing the titles of ownership in the possession of the vendee.
c. Use by the vendee of his rights, with the debtor’s consent.
d. Execution of private instrument

8. Three of the following are the requisites in order that an unpaid seller may exercise his
right of stoppage of transitu . Which one is not?
a. The seller is unpaid.
b. The seller has not parted with the possession of the goods.
c. The goods are in transit.
d. The buyer is or becomes insolvent.

9. Sison sold a registered piece of land to Bautista on May 1,2014 in a public instrument.
On May 3, 2014 Sison sold in a private instrument the same piece of land to Cruz,
who took physical possession of the land. Neither buyer was aware of the sale made
to the other.
a. The land belongs to Bautista
b. The land belongs to Cruz
c. The land still belongs to Sison, because both sales are void.
d. The land should be divided equally between Bautista and Cruz to give effect to
both sales.
10. On June 1,2014, Sanchez sold to Borlaza in a private instrument a certain computer.
Two days later, Sanchez orally sold the same computer to Contreras who
immediately took possession of the computer. Neither party was aware of sale made
of the other.
a. Warranty against hidden defects
b. Warranty against eviction
c. Warranty of ownership
d. Warranty of possession

11. Refer No.34. Assume that on May 5, 2014, Sison sold the land in a public instrument
to Domingo who was not aware of the two previous sales. Domingo then registered
the sale with the Register of Deeds.
a. The land belongs to Bautista
b. The land belongs to Cruz
c. the land belongs to Domingo
 d. the land will be equally divided among the three buyers

12. The justified of the buyer to accept the goods produces the following effects except:
a. Buyer has no duty to return the goods unless otherwise stipulated
b. Title to the goods does not pass on to him
c. Buyer shall not be obliged to pay the price
d. Buyers is obliged to constitute himself as depositary until returns the

goods

13. A contract of sale with a right to repurchase and the other contracts including a
contract purporting to be an absolute sale shall be presumed to be an equitable
mortgage in the following cases except when the:
a. Price of sale with the right to repurchase is unusually inadequate.
b. Vendor remains in possession of the thing sold.
c. Period to repurchase the property is extended
d. Vendee bind himself to pay the taxes due

14. An owner of a rural land has the right of legal redemption of an adjoining rural land
sold if the following requisites are present, except when the:
a. Adjoining rural land is not separated by any apparent servitudes for the benefit of
other estates
b. Land sold does not exceed one hectare
c. Grantee owns another rural land
d. Grantee owns an urban land

15. R,S and T are co-owners of an undivided parcel of land. R sold his 1/3 interest to T
in a deed of absolute sale. Which is correct?
a. S may exercise the right of redemption on the interest sold by R to T.
b. S cannot exercise the right of redemption
c. The sale made by R to T is voidable
d. S may redeem only ½ of the interest sold by R to T

16. D obtained from C a loan amounting to P50,000.00, the same being secured by a
mortgage on D’s lot. Thereafter, C assigned his credit right to T with the notice to D.
Based on the foregoing facts, which of the following statements is incorrect?
a. T cannot collect from D if D does not give his consent to the assignment
b. T can collect from D. D’s consent to the assignment is not required.
c. T can collect from D and if D cannot pay, T can foreclose the mortgage on the
lot.
d. The notice to D of the assignment is sufficient. D must make his payment to T
and no longer to C.

17. A kind of mortgage which, although lacking some formality, form of words, or
requisites prescribed by law, shows the intention of the parties to charge real
 property as security for debt and contains nothing is impossible or contrary to law is
known as:
a. Legal mortgage
b. Equitable mortgage
c. Conventional mortgage

d. Voluntary mortgage

18. This refers to the right of an adjoining owner of an urban land to be given preference
to the purchase of a small piece of urban land which is held for speculation before it
is offered for the sale to others.
a. Right if subrogation
b. Right of redemption
c. Right of pre- emption
d. Right of repurchase

19. A contract of sale is perfected upon:

a. Compliance with the requirements of the law as to form.
b. Delivery of the object of the contract.
c. The meeting of the minds on the thing which is the object of the contract
and upon the price.
d. Demand

20. A contract of sale is not a:

a. Principal contract
b. Nominate contract
c. Consensual contract
d. Real contract

21. The following may not be valid objects of a contract of sale except:
a. Objects outside the commerce of men
b. Illicit things
c. Future goods
d. Impossible services

22. This is a kind of constructive delivery where the vendor remains in possession of the
property sold, such as by virtue of a lease agreement with the vendee.
a.traditio longa manu
b. traditio brevi manu
c. traditio constitutum possessoruim

d. delivery to common carrier

23. When the goods are delivered to the buyer ,the ownership thereof passes to the
buyer in:
a. Sale on approval
 b. Sale or return
c. Sale on trial
d. Contract to sell

24. P, who was in Hong Kong, made an overseas call to A, his friend, to sell P’s lot in
Quezon City immediately as P needed cash. Accordingly, A sold the lot to B. The
deed sale was in a public document. The sale of P’s lot is:
a. Valid
b. Rescissible
c. Unenforceable
d. Void

25. It is an affirmation of fact or any promise by the seller relating to the thing which has
a natural tendency to induce the buyer to purchase the same, relying on such
promise or affirmation
a. Condition
b. False representation
c. Warranty
d. Seller’s talk

26. In one of the following cases, the ownership of the thing object of the contract is
transferred to the other party upon delivery
a. Contract sell
b. Agency to sell
c. Sale or return
d. Sale on approval

27. Under the “ Realty Installment Buyer Act”, the buyer of real estate on installment
payments may pay an installment payment may pay an installment defaulted without
additional interest if he has paid at least two years of installment. The law is
applicable to sales/transactions involving:
a. Industrial lots
b. Commercial buildings
c. Residential lots
d. Sales to tenants under the Land Reform Law

28. One of the following is a natural element of a contract of sale.

a. The price of the goods
b. The goods sold
c. The stipulation to pay interest on the purchase price of the goods
d. The seller’s warranty against hidden defects

29. Earnest money possesses three of the following characteristics. Which is the
exception?
a. It is part of the purchase price
b. It is proof of the perfection of the contract of sale.
 c. It is paid at the time of the perfection of the contract of sale.
d. It Is paid as a consideration for the purpose of holding one to his promise
to buy or sell a determinate thing for a certain period

30. The buyer is obliged to pay interest for the period between the delivery of the thing
sold and the payment of the price in the following cases, except if:
a. There is a stipulation to pay interest
b. There is no such stipulation but the thing sold produces fruits or income
c. The buyer is in default, from the time of judicial or extrajudicial demand for the
payment of the price
d. None pricing