LAW ON OBLIGATIONS AND CONTRACTS QUIZ BEE

Round 1
Easy
1 It is a principle which holds that contracts must be binding to both parties and its
(3) validity and effectivity cannot be left to the will of one of the contracting parties.
a. Obligatory force of contracts
b. Mutuality of contracts
c. Autonomy of contracts
d. Relativity of contracts
Answer: B
2 On January 15, 2014, A obliged himself to give to B his only cow, or his only dog, or
(7) his only cat on December 25, 2014. On July 4, 2014, the cow died after giving birth
to a young cow. Two months later the cat died due to the fault of A. And on
November 1, 2014, the dog died due to a fortuitous event. Which of the following is
true?
a. The obligation of A is extinguished
b. B is entitled to the young cow having been born after the perfection of the
contract
c. A is liable for the value of the cat plus damages
d. B can require A to replace the cat by another cat which is equally satisfactory
Answer: A (Disbar)
3 In distinguishing earnest money from option money. Option money is
(55 a. Given when there is no contract of sale
) b. Given only when there is a perfected contract of sale
c. Given to bind the offeror in a unilateral promise to sell or buy
d. Given as a separate consideration from the purchase price
Answer: C
4 A is indebted to solidary creditors W, Y and Z for Php90,000 due on August 1, 2014,
(21 while W owes A Php90,000 also due on August 1, 2014. On August 1, 2014,
) a. Both obligations are extinguished by compensation
b. A’s obligation is extinguished up to Php30,000
c. Either Y or Z can demand Php60,000 from A
d. Either Y or Z can demand Php90,000 from W
Answer: A (Bribe)
5 Motive differs from the cause of the contract, in that motive
(69 a. Is an essential element of a contract
) b. Maybe illegal and yet the contract is valid
c. Is always known by the other property
d. Will render the contract void
Answer: B

Average
1 When the condition has been imposed with the intention of suspending the efficacy
(10 of an obligation to give, the following rules should be observed, except
) a. If the thing is lost, the obligation shall be extinguished
b. If the thing is improved by nature, the improvement shall inure to the benefit of
the creditor
c. If the thing is improved at the expense of the debtor, he shall have no other right
than that granted to the usufructuary
d. If the thing deteriorates without the fault of the debtor, the impairment is to be
borne by the creditor
Answer: A
2 On August 1, 2013, A agreed to sell his only cow to B and B agreed to pay the price
(17 of Php20,000, if B will pass the October 2013 CPA Examination. The list of successful

This study source was downloaded by 100000787982896 from CourseHero.com on 03-18-2022 02:44:54 GMT -05:00

https://www.coursehero.com/file/68320167/QB-ObliCondocx/
 ) examinees was released on October 19, 2013 and B was one of those who passed
the examination. As a result,
a. A is entitled to the Php20,000 price plus interest beginning August 1, 2013
b. B is entitled to the cow and its fruits beginning October 19, 2013
c. B is entitled to the cow beginning August 1, 2013 and to its fruits beginning
October 19, 2013
d. A shall deliver the fruits of the cow and B shall pay the interest on the price
beginning August 1, 2013
Answer: C (Bribe)
3 A contract of sale between husband and wife is
(24 a. Void, if there is separation of property in the marriage settlement
) b. Valid, when there is a judicial separation of property
c. Voidable, if they are under the absolute community of property
d. Rescissible, if they are under the conjugal partnership of gains
Answer: B (Object)
4 A sold his necklace to B in a public instrument and later orally sold his watch to C.
(25 Both items will be delivered 7 days later. On the 5th day, A again sold the same
) necklace to D and the same watch to E. Both D and E immediately took physical
possession of the necklace and watch, respectively and both are not aware of the
previous sale to B and C. Who will have a better right to the necklace and watch?
a. B and C
b. D and E
c. B and E
d. C and D
Answer: C
5 Which of the following is a valid stipulation?
(51 a. A promises to give B Php10,000, and if A fails, A will allow B to have sexual
) intercourse with her for one week
b. A will give B Php10,000, if C will go to planet Saturn within the year
c. A agreed to give B a house and lot if B will kill A’s wife
d. A agreed to put poison on the food of B’s wife and if A fails, to pay B Php10,000
for damages
Answer: A (Bonus)

Difficult
1 A obtained an interest free loan of Php50,000 from B evidenced by a promissory
(46 note payable six months after date. At maturity, A called B by phone to ask for an
) extension of one month and offer to pay 20% interest on the loan. Enticed by the
20% interest, B agreed to the extension of maturity. Which is correct?
a. The interest is a demandable interest by virtue of an agreement
b. The interest is unenforceable
c. The loan is valid, but the interest is void
d. The loan and interest are both demandable
Answer: C (Disbar)
2 A was having his house repaired by B, who needed construction materials, so A
(59 orally told the seller C, “Give B the materials, I shall be responsible, I shall pay in 30
) days.” C delivered the materials. As a result,
a. The contract is unenforceable because A made an oral agreement to answer for
the debt of B
b. The contract is enforceable because A did not make a special promise to answer
for the default of another person
c. The contract shall be enforceable if there is ratification by A
d. The contract shall be unenforceable if the value is at least Php500
Answer: B

This study source was downloaded by 100000787982896 from CourseHero.com on 03-18-2022 02:44:54 GMT -05:00

https://www.coursehero.com/file/68320167/QB-ObliCondocx/
 3 A owes B Php100,000. A also owes C Php100,000. A failed to pay both obligations. B
(27 filed a complaint in court and a writ of attachment was issued against A’s land
) situated in Manila. Later, A sells his land in Makati to D. Which of the following is not
correct?
a. The sale of land in Makati is presumed fraudulent because a writ of attachment
has been issued
b. C may go to court for the rescission of the sale to D
c. B may go to court for the rescission of the sale to D
d. Neither B nor C can go to court for the rescission of the sale to D because the land
in Makati was not the object of the writ of attachment.
Answer: D
4 On January 1, 2014, A bought a parcel of land from B who was insane. The deed of
(61 sale was duly acknowledged before a notary public. Six months after the sale, A
) realized that he needed a larger area on which to construct a commercial building.
At about the same time, B who had been undergoing psychiatric treatment was
declared of sound mind by his neurologist. Should a court action be filed today,
which is correct?
a. A may successfully prosecute a court action to annul the contract on the ground
of B’s insanity
b. B may successfully prosecute a court action to annul the contract on the ground
of insanity
c. Neither A nor B may successfully prosecute a court action to annul the contract
d. A may successful prosecute a court action to annul the contract on the ground of
mistake as to the area of the parcel of land.
Answer: B (Bonus)
5 A, B and C are solidary debtors of W and Y, joint creditors for P12,000 where the
(4) share of the debtors in the obligation is 2:3:5 while the share of the creditors is 1:2.
If A is insolvent, which of the following is correct?
a. W can collect from B P3,200
b. Y can collect from C P8,000
c. W or Y can collect from B and C P12,000
d. Y can collect from either B or C P8,000
Answer: D (Object)

Round 2
Easy
1 D owes C Php6,000. No date for payment was stipulated by the parties. Which is
(14 correct?
) a. C can require D to pay when the period arrives
b. C can require D to pay at anytime
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 require D to
pay.
Answer: B
2 Which of the following contract is void?
(23 a. A minor selling the ring of her mother without authority from her mother
) b. A widow selling the land of her father with an oral authority from her father
c. A guardian selling for Php70,000 the necklace of her ward where the fair market
value of the necklace is Php100,000
d. A contract of sale between two deaf-mutes who both don’t know how to write
Answer: B
3 In January 2010, S, 17 years old, sold his only car to B, 21 years old. The sale was
(15 without the knowledge of G, the guardian of S. Assuming that the annulment case is
) filed today, which is correct?

This study source was downloaded by 100000787982896 from CourseHero.com on 03-18-2022 02:44:54 GMT -05:00

https://www.coursehero.com/file/68320167/QB-ObliCondocx/
 a. S may bring the action for annulment
b. G may bring the action for annulment
c. B may bring the action for annulment
d. Annulment will not prosper whoever file it
Answer: D
4 A contract of sale is
(54 a. A consensual contract
) b. A real contract
c. A gratuitous contract
d. A solemn contract
Answer: A
5 A has two creditors, B and C, the obligation to B is Php10,000 and to C is Php12,000.
(29 Later, with the consent of, W pays B Php10,000. Now W and C are the creditors of A.
) Suppose A has only Php12,000, which is correct?
a. C should be preferred
b. W should be preferred
c. C and W should be paid proportionately
d. A may choose whom to pay
Answer: C

Average
1 To be valid and enforceable, the following in contracts should be in writing except:
(35 a. Contract to pay interest on loan
) b. Contract of donation of real property
c. Contract giving authority to an agent to sell a piece of land
d. Contract made in consideration of marriage
Answer: B
2 A is indebted to B in the amount of Php50,000, with C as guarantor. On due date, A
(53 tendered payment to B but B refused. Because of B’s refusal, A deposited the
) amount in court. After the approval of the consignation, A withdraws the money with
the consent of B and C. Which is correct?
a. B lost the right to collect as A’s obligation is extinguished
b. B lost all the preference she might have over the amount deposited and C is still
liable as guarantor
c. B lost the right to collect from A and consequently lost also her right to collect
from C
d. B lost all the preference she might have over the amount deposited and C
guarantor was likewise released from liability
Answer: D
3 A pointed a gun and threatened to kill B if B will not sign a promissory note which
(28 reads “I promise to pay A, Php100,000”. Out of fear, B signed the note. It turned out
) that two days earlier, A’s obligation to B amounting to Php100,00 became due and B
demanded payment. Now, A alleges compensation is A correct?
a. Yes, because the promissory note is valid
b. No, because the promissory note was signed only because there was intimidation
c. Yes, provided B will agree
d. No, because A’s obligation does not exist
Answer: A
4 A granted a loan to B amounting to Php660,000 with 6% interest per annum. Such
(1) agreement was not reduced in writing, but B paid the obligation and interest in cash
and checks when A demanded payment. Which of the following is correct?
a. The payment of loan and interest is valid
b. The payment of loan and interest is void

This study source was downloaded by 100000787982896 from CourseHero.com on 03-18-2022 02:44:54 GMT -05:00

https://www.coursehero.com/file/68320167/QB-ObliCondocx/
 c. B can demand the return of the amount representing the interest paid
d. The principle of solutio indebiti is applicable, hence B can recover the amount
paid to A
Answer: C
5 Statement 1: In expromission, the new debtor’s insolvency or non-fulfillment of the
(12 obligation shall not give rise to any liability on the part of the original debtor.
) Statement 2: In delegacion, the insolvency of the new debtor, shall not revive the
action of the creditor against the original debtor.
a. True, True
b. True, False
c. False, True
d. False, False
Answer: D

Difficult
1 Which of the following statements is not correct?
(26 a. If A gives his ring to B but it is not clear whether A donated it or merely lent it, the
) contract should be interpreted as commodatum rather than donation
b. If A sells his car to B but A has 4 cars and it cannot be determined which car was
sold, the contract of sale is void
c. A borrowed Php100,000 from B which bears interest at 12% per year but there is
doubt whether it is payable in 2 or 3 years, the period of payment shall be
interpreted at 2 years
d. A engaged the services of B but the contract did not indicate the amount of
compensation to be paid, the amount thereof shall be the rate that is customarily
paid in the place where the services were rendered
Answer: C
2 Which of the following is not correct?
(34 a. A movable or immovable property may be the object of commodatum
) b. The bailor in commodatum need not be the owner of the thing loaned
c. A stipulation that the bailee may make use of the fruits of the thing loaned is valid
d. The bailor is obliged to pay for the ordinary expenses for the use and preservation
of the thing loaned
Answer: D
3 One of the following does not result into vitiated consent when employed by one
(56 against the other in a contract. This is
) a. A person emphasizing the fact that he is the one who raised and educated his
niece, who is now a prospective contracting party
b. Threat of serious bodily injury to a person should he refuse to sign the contract as
told
c. Fraud in the fulfillment or performance of the obligation
d. Exchange of vows or marrying the twin brother of your boyfriend
Answer: C
4 A owns a parcel of land which he sells to B with a 3-year redemption period. After
(41 the second year, A dies leaving his children, C, D and E as his heirs. Which of the
) following is not correct?
a. A can repurchase the whole thing, so anyone among C, D and E may repurchase
the whole thing
b. C can redeem his 1/3 share, D his 1/3 share and E his 1/3 share if B does not
require all of them or any one of them to redeem the whole property
c. B may demand all of the co-heirs that they come to an agreement upon
repurchase of the whole thing sold
d. B cannot be compelled to consent to partial redemption
Answer: A

This study source was downloaded by 100000787982896 from CourseHero.com on 03-18-2022 02:44:54 GMT -05:00

https://www.coursehero.com/file/68320167/QB-ObliCondocx/
 5 Statement 1: Chattel mortgage is a consensual contract and the creditor gets
(33 possession of the thing mortgaged.
) Statement 2: Pledge is a consensual contract and gives a personal right.
Statement 3: Real estate mortgage is a real contract and creates a real right if the
registered with the Registry of Property
Statement 4: Antichresis is an accessory contract and gives a real right.
a. Only one statement is true
b. Two statements are true
c. Three statements are true
d. All statements are false
Answer: A

Clincher
1 The following contracts are qualified for reformation, except
(45 a. Onerous contract
) b. Gratuitous contract
c. Renumeratory contract
d. Consensual contract
Answer: B
2 A, in his will, gave some property to B, provided that C would die within 5 years. This
(58 is a(an)
) a. Pure obligation
b. Obligation with a resolutory condition
c. Obligation with a suspensive condition
d. Obligation with a period
Answer: C
3 A and B mutually promised orally to marry each other while they were in Mang
(52 Telmo’s place. The agreement between A and B is
) a. Unenforceable, because the agreement was not made in writing
b. Unenforceable, because Mang Telmo’s place is not the proper place to make a
promise
c. Enforceable, because this is not covered by the Statute of Frauds
d. Enforceable, and therefore A may compel B to marry her
Answer: C
4 X, a bride to be, rented a car from Y Car Rentals to bring her to the church on
(38 February 14, 2010, her wedding day. The car and driver assigned were nowhere to
) be found on the scheduled day. Y Car Rentals incurs delay because
a. The obligation or law expressly declares
b. Time is of the essence
c. The obligor has rendered it beyond his power to perform
d. The date has been fixed by the parties
Answer: B
5 When the sale of a piece of land or any therein is through an agent, the authority of
(43 the agent may be
) a. In a public instrument
b. In a private instrument
c. Either in a public or private instrument
d. Duly notarized
Answer: C

This study source was downloaded by 100000787982896 from CourseHero.com on 03-18-2022 02:44:54 GMT -05:00

https://www.coursehero.com/file/68320167/QB-ObliCondocx/
Powered by TCPDF (www.tcpdf.org)