OoO000 CoO000 » Statoments! In novation, if the original obligation was subject to a suspensive condition, the new ‘obligation shall be under the same condition, unless itis otherwise stipulated ‘Novation which consists in substituting a new debtor in the place of the original one, may be made even without the knowledge or against the will of the creditor, but not without the consent of the debtor, Statements: Compensation may be set up against a creditor who has a claim for support. When the service has hecome so difficult as to be manifestly beyond the contemplation of the parties, the obligation shall be extinguished.Oo000 Cooo°o Statements: Itis presumed that the accessory obligation of pledge has been remitted when the thing pledged, after its delivery to the creditor, is found in the possession of the prineipal debtor. Merger which takes plac the guarantors. in the person of the principal debtor or creditor benefits tatements: ‘When the debt of a thing certain and determinate proceeds from a criminal offense, the debtor shall not be exempted from the payment of its price, whatever may be the ‘cause for the loss ‘There shall be no legal compensation if one of the debts consists in civil liability arising from a felonyo000 o0o00 Statements: There being no express stipulation and if the undertaking is to deliver a generic thing, the payment shall be made wherever the thing might be at the moment the obligation was constituted. Payment to a person who is incapacitated to administer his property may be valid. Statements: Proof of actual damages suffered by the creditor is not necessary in order that the penalty may be demanded, ‘The creditor is not bound to accept payment or performance by a third person.s Oo000 O000 Statements: ‘There being no express stipulation and ifthe undertaking is to deliver a generic thing. the payment shall be made wherever the thing might be at the moment the obligation was constituted, Payment to a person who is incapacitated to administer his property may be valid. Proof of actual damages suffered by the creditor is not necessary in order that the penalty ‘may be demanded. ‘The creditor is not bound to accept payment or performance by a third person.oo@o Statements: Even if there has been no performance, the penalty may be reduced by the courts. When the creditor accepts the performance, knowing its incompleteness or irregularity, the obligation is deemed fully complied with. Statements: The debtor cannot exempt himself from the performance of the obligation by paying the penalty. ‘The ereditor cannot validly demand the fulfillment of the obligation and the satisfaction of the penalty at the same time.oo0°0 10, ooo0o°0 Statements: When the choice has been expressly 1 alternative from the day when the selection has been consented to by the debtor. Consignation may result in the partial extinguishment of the obligation, Statements: It is presumed that there is legal subrogation when a creditor pays another creditor ‘who is preferred, even without the debtor's consent. Conventional subrogation of a third person does not require the consent of one of the original partiesn oo0000 Coco0o0o°o When one voluntarily takes charge of the business of another with the latter's authority, there is a Quasi datict . Natural obligation ©, Quasi contract Solutio indebitt None of the above ‘An obligation of an heit to pay a debt of the decedent exceeding the value of the property Which he received by will or by the aw of intestacy from the estate ofthe deceased isan obligation known as: a ceil b— quasiscontract pure 4. conditional none of the above13. A borrower who delays the return of the thing borrowed shall be liable for its loss even in case of fortuitous event, because: a He is required to exercise extra-ordinary diligence b, the nature of the obligation requires the assumption of risk © the parties have expressly stipulated such liability d, the law expressly so provides © the thing is gener 14, On October 6, 2010, Aurora obliged herself to deliver to Corita 100 cavans of com in her warchouse on the last day of the month. On. November 1. 2010, Corita orally demanded for the delivery of the 100 cavans of com but Aurora failed to comply. The next day, a ood damaged the 100 cavans of corn stored in the warchouse of Aurora, ‘a. Aurora's obligation to deliver 100 cavans of com to Corita was not extinguished because of the nature of the goods to be delivered. ‘Aurora is liable for damages because she was in defwult at the time of the loss. ¢. Aurora's obligation to deliver 100 cavans of com to Corita was not extinguished because an oral demand is not a valid demand. d. Aurora's obligation to deliver 100 cavans of corn to Corita was extinguished, the cause of the loss being a fortuitous event, exempting her from liability for damages.15, Demand is not necessary to constitute the debtor in default in the following cases, exept: demand would be useless the law so provides the period is the controlling motive for the creation of the ebligation the period for performance has been fixed in the obligation ‘none of the above CO0O@0 16. A promissory note signed by Martiniano and dated March 15, 2011 is worded as follows: “I promise to give Juanita the sum of Fifly Thousand Pesos (P50,000.00) provided that if she should fail in the October, 2011 CPA Examination, she shall return to me said amount.” The obligation of Juanita is one with a: a. suspensive condition ©. resolutory condition b. casual conditi d.__potestative condition ©. positive condiO®O0O00 18, ‘The following are obligations with a term, except: a. 1 promise to pay B 100,000.00 on December 25, 2002. 1 promise to pay B P100,000.00 on Easter Sunday next year. I promise to pay B P 100,000.00 once my means would permit. I promise to pay B P 100,000.00 if his dog dies within two (2) years. None of the above Which of the following conditional obligations is void? When the fulfillment of the suspensive condition is dependent upon the sole wil of the creditor. When the happening of the resolutory condition is dependent upon the sole will of the creditor. When the fulfillment of the suspensive obligation is dependent upon the sole will of the debtor. When the happening of the resolutory condition is dependent upon the sole will of the debtor. None of the above.19, OO@O0O Mr. AB owes Mr. CD 150,000.00 due on August 31, 2011. Mr. EF executed a mortgage in favor of Mr. CD on Mr. EF’s building to guaranty the obligation. On August 10, 2011, the mortgaged building was totally lost due tothe fault of AB. On “August 12, 2000 Mr. CD demanded payment from Mr. AB. Is Mr. CD's demand valid? a, Xo. The obligation is one with a definite period, thus the creditor cannot demand fulfillment of the obligation as such would be prejudicial to the rights of the debtor. No. The obligation is extinguished because the object of the obligation is lost. Yes. The debt becomes due at once because the guaranty was lost, unless the debtor ‘can mortgage another property that is equally satisfactory. 4. Yes. The debi becomes due at once because, {rom the tenor, benefit is given solely to the creditor thereby giving the ereditor the right w demand performance even before the date A B c D Mr. ABC is obliged to give Mr. XYZ his only car on July 15, 2012. Mr. XYZ demanded orally for the delivery of the ear on July 10, 2012. On July 20, 2012, an earthquake destroyed the ear which was still in the garage of Mr. ABC. Is Mr, ABC liable for the loss of the car? a. No. Considering that no valid demand to deliver was made by Mr. XYZ and the specific thing was lost due to fortuitous event 0. The obligation is extinguished, even if the debtor is already in default, because the debtor can plead impossibility of performance. ©. No, because an oral demand is not sufficient to cause delay. 4. Yes. Mr. ABC is already in legal delay, thus the obligation to deliver the thing is converted ino monctary claim for damages. ©. None of the above.COo0O@0 On January 1, 2012, A signed_a promissory note binding himself to pay X P 100,000.00 on or before August 30, 2012 Before August 30, 2012, A can be compelled to pay. Before August 30, 2012 X ean validly refuse an offer to pay. Before August 30, 2012 while A cannot be compelled to pay, X also cannot be compelled to accept payment. 4, Before August 30, 2012 while A can be compelled to pay, X cannot be compelled to accept payment Before August 30. 2012 while A cannot be compelled to pay. X can be compelled to accept payment. On June 1, 2015, Demetrio obtained a loan of P 100,000.00 from Cornelio. The loan, which is payable on or before June 1, 2017. is secured by a chattel mortgage on Demetrio’s brand- new Toyota ear with plate number XYZ 123. On July], 2016, while Demetrio w. the trunk of his car atthe parking lot of a grocery store to place the groceries he hal purchased, three unidentified men approached him and took his car at gunpoint. He reported the carnapping to the authorities but his car has not been recovered to dat. a. Comelio may now demand immediate payment of the loan unless Demetrio gives another security therefor. b. Comelio may demand payment only on June 1, 2017 because Demetrio has the sole benefit of the period and the loss of the car was due to force majeure. ¢. Comelio may no longer demand payment since the loan was extinguished by reason of the loss of the car due to fortuitous event 4d. Comelio may now demand immediate payment even if Demettio oflers another security because the ear is determinate and could not be replaced. Comelio can no longer demand payment because the loss happened when the obligation was not yet due23. The following are the effects of a joint obligation, except : COoO@0°o total remission of the debi by one of the ereditors in favor of a debtor releases all the debtors demand by one creditor upon one debtor produces the effect of default only to the creditor who demanded and the debtor on whom demand was made, insolvency af one of the debtors does not increase the responsibility of his co-debtors interruption of prescriptive period by judicial demand by one creditor upon a debtor docs not benefit the other ereditors nor prejudice the other debtors, None of the above respect ‘A, Band C borrowed P 36,000.00 from X and Y. ‘The three (3) debtors signed 2 promissory reditors on or before December 10, 2017 pote on January 10, 2017 promising to pay the How much can X validly demand from € today in case a P18,000,00 cc — PI2,000.00 -e None b. —P6,000.00 dP36,000.0025, ‘A, Band C borrowed P150,000.00 from X, The debtors signed a promissory nove on January 10, 2017 promising to pay X individually and jointly on or before March 10, 2017. How much can X collect from A and B today? a. P100. 000.00 © 50,000.00 None b 25,000.00 a 150,000.00 A, B and C borrowed P360,000.00 from X and Y. The three (3) debtors signed a promissory rote on January 10, 2016 promising to pay the ereditors on or before July 10, 2016. How ‘much can X validly demand from C_on June 30, 2016 in case of active solidarity and A is insolvent? a. PI80,000.00 — P120,000.00 © none b. —P60,000.00 4. P360,000.0027. X filed an action against A, one of 4 debiors who bound themselves to pay jointly and OoOo@°0O ‘severally to pay the amount of P100,000,00. ‘The action was dismissed because A was a minor when the contract was entered into, If Y, a solidary creditor files an aetion against B, ‘one of the 4 debiors: a. the action will not prosper b. Y-can recover the amount of P100,000.00 &. Yan recover only P12,500.00 d._¥ can recover the amount of P75,000.00 > o ° ° In passive solidarity with A, B,C, D and Fas debtors and X amount of P20,000.00, how much can X demand from A, remitted the share of C? a. P20,000 d 6,000 b. P10,000 e none c. P8,00029. X filed an action against A, one of 4 debtors who bound themselves to pay jointly the amount of P100, 000,00. The action was dismissed because the obligation was void as, to Aas he was prohibited from entering into such kind contract, IfY, the other y creditor files an action against B, one of the 4 debtors: a. Y cannot recover from B. b. Y can reeover the amount of P100,000,00 ¢.Y can recover only P12,500.00 4. Y can recover the amount of P25,000.00 e Y can recover the amount of P6,250.00 30. D obliged himself to give C, object No. 1 valued P15,000.00; or object No. 2 valued 10,000.00; or object No. 3 valued P5,000.00. Before D could communicate his, choice, object No.1 was lost due to C's fault a. Ds obligation is extinguished b. *s obligation is to pay D the value of object No. 1 plus damages ©. Cs right is to demand the value of any of the objects plus damages d. D's obligation is to pay the value of object No. 1 plus damag e. _D may rescind the obligation, with damages.31 22, D obliged himself to give C, object No. 1 valued P15,000.00; or object No.2 valued P10,000.00; or object No. 3 valued PS,000.00. Before C could communicate his, choice, object No.1 was lost due to D's fault. a. Ds obligation is extinguished b. D's obligation is to pay C the value of object No. plus damages c. C's only right is to demand the value of any of the remaining objects plus damages 4. C’sight isto demand for the delivery of ebject No. 2 or 3 plus the value oF object No. 1 ©. C's right is demand for the value of object No. 1 plus damages. On May 1, 2012, D obtained a 60-day loan from ABC Loan Company amounting to 50,000.00 with G as guarantor, D also issued two checks ~ one amounting to 30,000.00 dated June 30, 2012, and the other far P20,000.00 dated July 1, 2012. On the due dates of the checks, ABC Loan presented the checks for payment but ealy the check for P30,000.00 was honored. The other check was dishonored for lack of funds. T, ‘wanting to save the eredit standing of D, paid ABC Loan PS0,000.00 with the conseat of D. T may recover from D PS0,000.00 and if D cannot pay, T can go against T may recover from D P20,000 00 and if D cannot pay, T ean go against T may recover from D PS0,000.00 and if D eannot pay, T cannot go after G: T may recover from D P30,000.00 and if D cannot pay. T cannot go afte G. ‘T may recover Irom D P20,000 00 and if D cannot pay, T cannot go after G.3 CO0@0 It presupposes not only that the obligor is able, ready, and willing, but more so, in the act of performing his obligation. a ‘A owes solidary creditors XYZ P10,000. There is remi promissory note b. bill ofexchange _. tender of payment obligation to sell . consignation ion of the debt when: X borrows P10,000 from A. Z makes a will giving the P10,000 credit to B Y tells A that instead of paying P10,000, A shall just deliver a ring to Y. X waives gratuitously the obligation of P10,000 in favor of A.35. Which of the following will not extinguish an obligation? a Condonation b. Novation c. Fortuitous Event d. Mutual dissent e. Compromise @oo0oo0 36. Which of the following is not an clement of legal compensation? Debts to be compensated are due and demandable The obligations are reciprocal in character There are two or more debts of the same kind The two persons are principally bound as debtors of each other There two persons are creditors of cach other in their own right paogeOo@O0O°0 Joey, husband, and Alma, wife, are legally separated. By order of the court whieh decreed the legal separation, Joey is obliged to give a monthly support of P20,000.00 to Alma which is payable on or before the fifth day of the month. For the month of March 2017, Jocy has not yet given Alma’s support of 20,000.00. Last February, however, ‘Alma borrowed P20,000.00 from Joey and has not yet paid it although itis already due. ‘Alma now demands from Joey the amount of P20,000.00 for her support for March 2017 but Jocy refuses to give it on the ground that Alma’s debt to him and Alma’s monthly support had extinguished each other by compensation. Alma maintains that she is still colitled to receive her support for March 2017 and that itis she alone who can claim compensation, Decide, a. Joey has the right to claim compensation but not Alma. 'b, Alma has the right to claim compensation but not Jooy. c. Both debts are extinguished by legal compensation even without Joey or Alma claiming compensation since both debts are already due. 4d. Neither may claim compensation because the debts are not of the same kind. ‘On October 6, 2009, Ais indebted to B for P50,000 for a 30-day period, On October 20, 2009, without the knowledge of A, B proposed to X for X to pay A's debt on November 15, 2009 releasing A from his obligation. X agreed to the proposal. On November 25, 2009, when B tried to collect from X, he found out that X was insolvent. The insolvency ‘was of public knowledge as early as October 20, 2009, Can B still validly demand payment from A? a. Ais liable because he is presumed to have guaranteed X's solvency Ais liable because the insolvency of f X was already in existence and of public knowledge on October 20, 2009. ©. Ais not liable because the agreement between B and X happened before the ‘obligation of A became due. Ais not liable because his obligation was extinguished with the agreement of B and X39. 40. In which of the following will there be no legal subrogation? When a debior pays a creditor who is preferred When a third person who has an interest in the fulfillment of the obligation, pays without the approval of the debtor When a person who has no interest in the fulfillment of the obligation pays with the consent of the debtor none of the above ‘X owes ¥ PA40,000. With the consent of both parties, Z pays ¥ P20,000 which makes Y and Z creditors of X to the amount of P20,000 each. X becomes bankrupt and has only P20,000 assets elt. a b. ©. a. Y and Z should divide the P20,000 equally X may choose whom to pay. Y should get the P20,000. Z is entitled to the P20,000.4 Ifa debtor delivers a thing to his ereditor with a Special Power of Attorney authorizing the latter to sell the thing, is the debtor’s obligation extinguished by way of dation in payment upon acceptance of the thing by the creditor? Your answer A entered into a contract with B which was notarized. ‘Thereafter, A filed an action for rescission. B filed a motion to dismiss on two grounds : First, that the action was filed more than four years from the date of the contract and second, that A did not exhaust available legal remedies. If you were the judge, how would you rule on the ABC Corporation, a VAT Zero-Rate taxpayer, filed a claim for the issuance of tax credit certificates for its alleged unutilized input taxes. BIR refused to issue tax credit certificates. ABC Corporation claimed that the government will be unjustly enriched under the principle of solutio indebifi if BIR will not issue the said tax credit certificates. Is the claim tenable? A. Iya and Betty owed Jun P500,000.00 for advancing their equity in a corporation they joined as incorporators. Iya and Betty bound themselves solidarily liable for the debt. Later, Iya and Jun became sweethearts so Jun condoned the debt of P500,000. May Iya demand from Betty P250,000.00 as her share in the debt? Explain with legal basis. (32%) B._Juancho, Don and Pedro borrowed P150,000.00 from their friend Cita to put up an internet café orally promising to pay her the full amount afier one year. Because of their lack of business know-how, their business collapsed. Juancho and Don ended up penniless but Pedro was able to borrow money and put up a restaurant which did well. Can Cita demand that Pedro pay the entire obligation since he, together with the two others, promised to pay the amount in full after one year?” Defend your answer.