1st Midterm Departmental Examinations Reviewer

A.Y. 2023 - 2024

Subject Code: LAW 101

Course Subject: Law on Obligations and Contracts

1. An obligation whose consequences are subject to in one way or another to the

fulfillment of a condition.
a) Suspensive Conditional Obligation
b) Resolutory Conditional Obligation
c) Pure Obligation
d) Conditional Obligation

2. Is a future and certain event upon the arrival of which obligation subject to it
either arises or is extinguished.
a) Resolutory Condition
b) Suspensive Condition
c) Period
d) Condition

3. Those obligations derived from this source are not presumed.

a) Law
b) Contracts
c) Quasi-contracts
d) Quasi-delicts

4. The obligation of partners in a partnership is derived from what source?

a) Law
b) Contracts
c) Quasi-contracts
d) Quasi-delicts

5. Robert and Rommel, solidary debtors, are indebted to Katherine for P100,000.
If Rommel pays Katherine P100,000 is the obligation extinguished?
a) Yes, because this is active solidarity.
b) No, because this is active solidarity.
c) Yes, because this is passive solidarity.
d) No, because this is passive solidarity.
6. Also known as culpa aquiliana. These are acts or omissions that cause damage
to another, there being fault or negligence but without any pre-existing
contractual relation between the parties.
a) Law
b) Contracts
c) Quasi-contracts
d) Quasi-delicts

7. It causes the extinguishment or loss of rights already acquired upon the

fulfillment of the condition, that is, the happening of the event which
constitutes the condition. In other words, the fulfillment of which will
extinguish an obligation (or right) already existing.
a) Condition Subsequent
b) Suspensive Condition
c) Facultative Condition
d) Positive Condition

8. This refers to payment by mistake of an obligation which was not due when
paid. It creates the obligation to return the payment.
a) Negotiorum gestio
b) Solutio indebiti
c) Quasi-contracts
d) Delicts

9. Which of the following statements is/are true?

I. In alternative obligation only one prestation, the principal obligation is
due.
II. In alternative obligation if there are void prestations and even if the
others may still be valid the obligation is still extinguished.
III. In facultative obligation several prestations are due, but the
performance of one is sufficient to extinguish the debt.
a) Statement II only
b) Statement III only
c) Statements I, II, and III.
d) None of the statements.

10. Which of the following statements is/are false?

I. Whenever in an obligation a period is designated, it is presumed to have
been established for the benefit of both creditor and the debtor.
 II. Anything paid or delivered before the arrival of the period, the obligor
being aware of the period, may be recovered, with the fruits and
interest.
a) Statement I only.
b) Statement II only.
c) Statement I and II.
d) None of the Statements.

11. Evaluate the following.

I. Minerva agreed to pay Alicia P50,000 in four equal installments.
II. Clare obliged herself to deliver to James her Toyota car on January 13.
III. The obligation of Sean to paint the vacation house of Lance, the painting
to be finished in 15 days.
a) All of the statements are divisible obligations.
b) All of the statement are indivisible obligations
c) Only Statement II is an indivisible obligation.
d) Only Statement I is a divisible obligation.

12. Which of the following is a partial loss that is considered as a total loss?
a) The loss of the body of a ballpen, what remains is the cover.
b) In marine insurance, when more than half of the vessel is lost.
c) A smartphone screen cracks but the device still functions.
d) A stained carpet.

13. Aaron bought a house and lot in a subdivision subject to the condition,
annotated on the certificate of title, that it shall be used for residential
purposes only. Ten years later, Aaron sold the property to Ayen who converted
it into a restaurant. The owner of the subdivision demanded its closure but
Ayen refused, alleging that his lot has been reclassified by an ordinance as
commercial and that it has in fact became commercial because of its proximity
to some stores and a shopping center in an adjoining subdivision. Is Ayen's
allegation tenable?
a) No, because the conversion of the land into commercial by ordinance is valued under
police power.
b) Yes, because there are no legal issues contradicting the claims of Ayen.
c) No, because there are legal issues contradicting the claims of Ayen.
d) Yes, because the conversion of the land into commercial by ordinance is valued
under police power.
14. Lechon Corporation, engaged in the sale of subdivision residential lots, sold to
Sinigang a lot of 1,000 square meters. The contract provides that the
corporation should put up an artesian well with tank, within a reasonable time
from the date thereof and sufficient for the needs of the buyers. Five years
thereafter, no well and tank have been put up by the corporation. Sinigang
sued the corporation for specific performance. Will the action prosper?
a) Yes
b) No
c) Maybe
d) None of the choices

15. Hehe, Haha and Hihi are solidarily obliged to give Kiki a particular car valued
at P80,000. Subsequently, the car, while in the possession of Hihi, got lost due
to his fault. Can Kiki hold Hehe liable even if it is the fault of Hihi?
a) Yes
b) No
c) Maybe
d) Cannot be determined

16. Lolo Taehyung commits the crime of violation of the Anti-Carnapping Law, and
was asked to return the car stolen to the owner under the principle of
restoration or restitution of the property stolen. Supposing on the date of
delivery, Lolo Taehyung tendered delivery but Tender Juicy refused to accept.
Subsequently, the car got lost due to fire. Is the obligation to deliver
extinguished?
a) Yes, because the creditor is in default, mora accipiendi.
b) Yes, because the debtor is in default, mora solvendi.
c) No, because the thing to be returned proceeded from a criminal offense, the loss of
it shall not extinguish the obligation.
d) No, because the thing to be returned proceeded from a criminal offense, the loss of
it shall extinguish the obligation.

17. Mima and Mina oblige themselves solidarily to give Namy a specific car valued
at P12,000. While Mima is in possession of the car, it got lost due to his fault.
In this case, what is the right of Namy?
a) There is no right because there is no liability attached.
b) Right to demand the value of the car from Mima.
c) Right to relapse.
d) Right to demand the value of the car from Mima or Mina plus damages.
18. All are exceptions where aside from penalty, damages and interest may be
demanded by the creditors, except
a) When it is stipulated.
b) When the debtor is guilty of fraud.
c) When the debtor refuses to pay the penalty.
d) When it is constituted by law.

19. Statement 1: Future fraud on the part of the debtor can be waived.
Statement 2: A natural obligation is a valid obligation.
a) True; True
b) False; False
c) True; False
d) False; True

20. Taylor obtained a loan of P5,000.00 from Travis. On due date, Taylor tendered
payment amounting to P5,000.00 consisting of 5,000 pieces of P1.00 coin.
a) The payment offered by Taylor is legal tender.
b) Travis may not refuse to accept the payment.
c) Should Travis refuse to accept the payment, Taylor may resort to consignation
(deposit of the payment in court).
d) Travis may demand that he be paid in bills.

21. Consignation alone without any tender of payment is sufficient in the

following cases, except:
a) when the creditor is absent or unknown or does not appear at the place of payment.
b) when the creditor presents the title to the obligation for collection.
c) when without just cause, the creditor refuses to give a receipt.
d) when two or more persons claim the same right to collect.

22. Merry owes P P10,000.00. The obligation is evidenced by a promissory note.

Subsequently, Merry assigned the note to Arry, Arry to Berry. Berry to Carrie,
and Carrie back to Merry. The obligation of M is extinguished by:
a) compensation
b) confusion
c) condonation
d) The obligation is not extinguished because there was no payment.

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

24. Shanti owes Candy P10,000.00. Tyrone offers to pay Shanti's obligation and
tells Shanti need not reimburse him. However, Shanti does not give his
consent to Tyrone's offer not to be reimbursed. Candy, nonetheless, accepts
the payment from Tyrone.
a) The payment is valid insofar as Candy is concerned since he accepted the payment.
b) The payment is not valid because Shanti did not give his consent to Tyrone's offer
not to be reimbursed for the payment.
c) The payment is not valid because it was not Shanti himself who made the payment.
d) The payment will be valid if Tyrone had the intention to be reimbursed and Shanti
consented to the payment.

25. Damon owes Elena P50,000.00. Subsequently, Damon proposed to Elena that
Stefan will assume his (Damon's) debt. Elena accepted the proposal of Damon.
This type of novation which involves the substitution of the debtor is known
as:
a) Delegacion
b) Expromision
c) Objective Novation
d) Subrogation

26. Which of the following payments is not valid?

a) Payment to a third person who acquires the creditor's right after the payment.
b) Payment which, although made to a third person, was ratified by the creditor.
c) Payment to a third person who does not have the authority to receive the payment
but the creditor, by his conduct, has led the debtor to believe that the third person
had authority to received payment.
d) Payment made in good faith to a person in possession of the instrument but not the
credit.

27. In order that condonation may extinguish an obligation involving a movable

property whose value exceeds P5,000.00
a) It is sufficient that the condonation and the acceptance are in writing, even a private
one.
b) It is required that the condonation and the acceptance be in a public instrument.
c) The delivery of the document evidencing the debt is sufficient since the property is
movable.
d) The condonation and the acceptance may be made orally.
28. Riguel, husband, and Lily, wife, are legally separated. By order of the court
which decreed the legal separation, Riguel is obliged to give a monthly support
of P10,000.00 to Lily payable within the first five days of the month. Lily owes
Riguel P10,000.00 by way of a business loan. On the other hand, Riguel has
not yet given Lily's support of P10,000.00 for this month. Both debts are
already due. Which of the following statements is correct?
a) Both debts are extinguished by legal compensation because both are already due.
b) Lily may claim compensation but not Riguel.
c) Riguel may claim compensation but not Lily.
d) Neither one may claim compensation because the debts are not of the same kind.

29. The distinction between merger and compensation is that in merger

a) The two debts may be payable at different 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.

30. Santa Angge obliged himself to give a specific car to Santa Jolens on June 25
and if Santa Angge fails to do so, Santa Angge will pay P200,000. If Santa
Angge failed to deliver after demand, she is liable to pay the penalty, and Santa
Jolens cannot ask for the car and the penalty at the same time because the
penalty is ______________.
a) subsidiary
b) Punitive
c) joint
d) punitive

31. The passage of time as a mode of acquiring or losing a right including the
extinguishment of an obligation is called:
a) remission
b) novation
c) prescription
d) merger

32. Mingyu obliged himself to give Me a specific car on June 25, and if he fails to
do so, Mingyu in addition to the car must pay Me P10,000 as penalty. If Mingyu
failed to deliver after demand, Me is entitled to ask for the delivery of the car
and payment of P10,000, because the penalty is ______________.
a) subsidiary
b) punitive
c) joint
 d) conventional

33. July obligated himself to sell May for P10,000 a specific mare then pregnant,
after giving birth to a foal, or in default thereof, to pay P3,000 as penalty.
However, the horse died while giving birth to a foal. May June sue July for the
recovery of the penalty of P3,000?
a) Yes
b) No
c) Neither a or b
d) Cannot be determined

34. Lechon Paksiw ordered a 10-year old boy, Lechon Kawali, to climb a high
mango tree, with a promise to give him parts of the fruits. Lechon Kawali
slipped, fell on the ground and died instantaneously. Is Lechon Paksiw liable?
a) Yes
b) No
c) Neither a or b
d) Cannot be determined

35. The following are elements to concur before the person is liable for quasi-
delict, except
a) There is a pre-existing relation between the offender and the offended parties.
b) There is an indirect relation of cause and effect between the fault or negligence and
the damage or injury.
c) The act or omission complained of is due to the fault or negligence of the offending
party.
d) Both a and b

36. The negligence as a source of obligation; The negligence that result from
crime; The negligence in the performance of an obligation arising from
contract.
a) Culpa solvendi; Culpa contractual; Culpa Acquiliana
b) Culpa criminal; Culpa contractual; Culpa acquiliana
c) Quasi-delict: Culpa criminal; Culpa contractual
d) Culpa criminal; Culpa contrata; Culpa acquiliana

37. Joe was injured while he was a passenger of a Taylor Bus operated by Travis
and company. The proximate cause of the accident was a tire blowout, is that
fortuitous in nature? Assume that the proximate cause of the accident was the
failure of the steering wheel to work causing the driver to lose control of the
 bus the result of which it fell into a ditch, can the operator exempt himself due
to a fortuitous event?
a) Yes, No
b) No, Yes
c) Yes, Yes
d) No, No

38. When a debtor is unable to fulfill his obligation because of fortuitous event,
his obligation to comply is extinguished subject to the following exceptions,
except;
a) When stipulated by the parties that the happening of an event fortuitous in nature
shall not exempt the debtor from his liability.
b) When the event is independent of the will of the debtor.
c) Where the nature of the agreement requires the assumption of risk.
d) When the law expressly so provides.

39. What are the obligations of a person obliged to give a determinate thing?
a) To take care of the thing with the proper diligence of a good father of a family.
b) To deliver all accessions and accessories.
c) To pay damages in case of breach of the obligation.
d) All of the above.

40. Anton was an hacienda owner, who contracted the services of Sohee, a sugar
central, to grind Anton's sugar cane. It was agreed further as a condition that
Sohee may construct a railroad to pass on Anton's hacineda to facilitate the
easy movement of sugar wagon from one point to another. When Sohee was
asking the written permission of Anton, the latter refused. Yet, he sued Sohee
for failure to grind the sugar cane on time. Will the action of Anton prosper?
a) Yes, because Anton din voluntarily prevented the fulfillment of the condition.
b) No, because Anton voluntarily prevented the fulfillment of the condition.
c) Yes, because the obligor must not be released in whole or in part.
d) None of the above.

41. Effect of loss of a thing in a facultative obligation. Which is incorrect?

a) Before substitution: if the principal thing is lost due to fortuitous event, there is no
more obligation.
b) Before substitution: if the principal thing is lost due to debtor's, there is no more
obligation.
c) After substitution, if the principal thing is lost, the debtor is no longer liable even if
it was lost due to his fault.
d) None of the above.
42. There is _________, when, through insidious words or machinations of one of
contracting parties, the other is induced to enter into a contract, without
which, he would not have agreed.
a) negligence
b) penalty
c) fraud
d) crime

43. If one of the debts is a loan obligation, legal compensation shall be proper if
the other debt arose from:
a) commodatum
b) civil liability arising from a criminal offense
c) gratuitous support
d) bank deposit

44. A, B and C are solidary debtors of X, Y and Z. Solidary creditors in the amount
of P27,000. X renounces the whole obligation without the consent of Y and Z.
The debtors accepted the renunciation.
a) The whole obligation is extinguished.
b) Only P9,000 is extinguished.
c) No part of the obligation is extinguished because not all the creditors consented to
the renunciation.
d) Only P3,000 is extinguished.

45. A, B, and C are solidary debtors of X in the amount of P30,000.00. X renounces

the share of A and A accepts the renunciation. Thereafter. B becomes
insolvent. Ultimately:
a) C alone will shoulder the balance of P20,000.00.
b) A will shoulder P5,000.00, while C will shoulder P15,000.00.
c) C will shoulder only his share of P10,000.00. A will no longer shoulder any amount
since his share was already renounced by X.
d) A will shoulder P10,000.000, while C will shoulder P10,000.00, for the remaining
balance of P20,000.00.

46. Dacion en pago and payment by cession are special forms of payment. They
are similar in which of the following respects?
a) On the number of creditors involved.
b) On the extent of the properties involved in the payment.
c) On the purpose of the payment.
d) On whether the debtor is released completely from his obligation/s.
47. Which of the following is a characteristic of expromision but not of delegacion?
a) It is made with or without the consent of the debtor.
b) The third person who makes the payment to the creditor is always entitled to
subrogation.
c) In case of insolvency of the new debtor, the creditor may still recover from the
original debtor under certain circumstances.
d) It is initiated by the debtor himself.

48. Statement 1: Legal compensation takes place by operation of law even if the
debts are payable at different places.
Statement 2: Compensation cannot be set up against a creditor who has a
claim for future support by gratuitous title. 8
a) True; True
b) True; False
c) False; True
d) False; False

49. Statement 1: Novation may take place by changing the object or principal
conditions of the obligation.
Statement 2: If the old obligation is void, the novation will still be valid if the
new obligation is valid.
a) True; True
b) True; False
c) False; True
d) False; False

50. Statement 1: Merger which takes place in the person of the principal debtor or
creditor extinguishes the obligation of guaranty.
Statement 2: A debt which consists of a sum of money and another debt which
consists of a consumable thing are extinguished by legal compensation as long
as both debts have the same amount and are already due.
a) True; True
b) True; False
c) False; True
d) False; False

51. Qaye, Angela, and Jane are liable individually and collectively to Eugene in the
amount of P90,000. On October 20, 2023, due date, Eugene demanded
payment from Qaye. However, Jane is insolvent. Eugene may collect:
a) Eugene may collect from Qaye P30,000 only and from Angela P30,000 only.
 b) Eugene may collect from Qaye P45,000 only and from Angela P45,000 only.
c) Eugene may collect P60,000 only from either Qaye or Angela.
d) Eugene may collect P90,000 from either Qaye or Angela.

52. When the government, upon the failure of any person to comply with health
or safety regulations concerning property, undertakes to do the necessary
work, even over his objection, he shall be liable to pay the expenses. The
liability arises from:
a) Law
b) Contracts
c) Quasi-contracts
d) Quasi-delicts

53. Which of the following is/are true?

I. A condition may refer to a past event unknown to the parties.
II. The period in an obligation always refers to the future.
a) Statement I is true; Statement II is false
b) Statement I is false; Statement II is true.
c) Both Statements are true.
d) Both Statements are false.

54. Which of the following is an obligation with a penal clause?

a) Jane is obliged to give a specific laptop to Angela with the agreement that Jane may
deliver a specific cellphone as a substitute.
b) Zild is obliged to construct a commercial building for AB within a period of 5 months.
The parties agreed that should Zild fail to finish the construction of the building
within the said period, Zild shall pay AB P1,500 for every day of delay.
c) Eugene borrowed from Christian P50,000. It was agreed that Eugene could comply
with his obligation by giving Christian P50,000, or an Iphone12 or, by performing
on his birthday.
d) None of the above.

55. Evaluate the following statements.

I. I will pay you when my means permit me to do so.
II. I will give you P5,000 a month as your allowance until the school year
2023-2024 ends.
a) Statement I and II have a suspensive period (ex die)
b) Statement I and II have a resolutory period (in diem)
c) Statement I has a suspensive period (ex die); Statement II has a resolutory period
(in diem)
 d) Statement I has a suspensive period (in diem); Statement II has a resolutory period
(ex die)

56. All of the following describe quasi-delict, except:

a) There is an act or omission, fault, or negligence
b) It concerns private interest
c) The liability cannot be compromised because it is somewhat a crime.
d) There must be a direct relation or connection of cause and effect between the act
or omission and the damage.

57. Michelle is obliged to give a laptop, a cell phone, or a tablet to Prince. The right
of choice as to which thing will be delivered to Prince belongs to Michelle. The
obligation referred to is:
a) An alternative obligation
b) A conjunctive obligation
c) A distributive obligation
d) A facultative obligation

58. Helen and Camil are jointly and severally liable to Qaye for P50,000. The
obligation is due on October 31, 2023. On October 20, 2023, Camil paid the
whole amount of the note to Qaye. If Helen reimburses Camil on November
10, 2023, Camil is entitled to receive from Helen:
a) P25,000 with no interest because Camil paid the note before the due date.
b) P25,000 plus interest from October 20 to October 31, 2023.
c) P25,000 plus interest from October 20 to November 10, 2023.
d) P25,000 plus interest from October 31 to November 10, 2023.

59. Evaluate the following statement.

I. In general, in obligation with a penal clause, the penalty shall substitute
the indemnity for damages and the payment of interest in case of non-
compliance.
II. In general, the debtor can exempt himself from the performance of the
obligation by paying the penalty.
a) Statement I is true; Statement II is false.
b) Statement I is false; Statement II is true.
c) Both statements are true.
d) Both statements are false.

60. The following are are false regarding civil liabilities arising from delicts,
except:
a) Crime causes not only moral evil but also material damage is not only criminally
liable but also civilly liable.
b) Civil obligations arising from criminal offenses shall be governed by the Civil Code
only.
c) If a person is criminally liable he cannot at the same time be civilly liable.
d) None of the above.
 Summary of Answers

1. D 31. C
2. C 32. C
3. A 33. B
4. B 34. A
5. C 35. D
6. D 36. C
7. A 37. D
8. B 38. B
9. D 39. D
10. B 40. B
11. C 41. B
12. A 42. C
13. D 43. D
14. B 44. A
15. A 45. B
16. A 46. C
17. D 47. A
18. D 48. A
19. D 49. B
20. D 50. B
21. B 51. D
22. B 52. C
23. B 53. C
24. A 54. B
25. A 55. C
26. D 56. C
27. A 57. A
28. B 58. D
29. D 59. A
30. A 60. A
 Summary of Answers – Explained

1. (D) Refer to Art. 1179. A conditional obligation is one whose demandability or

extinguishment depends upon the happening of a condition.
2. (C) Refer to Art. 1193. A period is a future and certain event while a condition is a future
and uncertain.
3. (A) Refer to Art. 1158. Obligations derived from the law are not presumed.
4. (B) Refer to Art. 1159. Obligations arising from contracts have the force of law between
the contracting parties and shall be complied with in good faith. Also in Art.1767, a
partnership is defined as a contract.
5. (C) Refer to Art. 1217. Payment made by one of the solidary debtors extinguishes the
obligation.
6. (D) Refer to Art. 1162. Quasi-delict is not the same as crime because there is no
malicious or criminal negligence, only negligence.
7. (A) A condition subsequent is a type of contract clause that modifies or cancels the
obligation of one party if a specific event occurs. The occurrence of the event voids the
contract or alters the terms of the agreement 1. In obligations subject to a suspensive
condition, the acquisition of rights by the creditor depends upon the happening of the
event which constitutes the condition
8. (B) Refer to Art. 1160. Obligations derived from quasi-contracts shall be subject to the
provisions of Chapter 1, Title XVII of this book [Obligations and Contracts]. Where will
give us Art. 2154 Solutio Indebiti. If something is received when there is no right to
demand it, and it was unduly delivered through mistake, the obligation to return it
arises.
9. (D)
Statement I is a facultative obligation. Refer to Art. 1206. When only one
prestation is agreed upon, but the obligor may render another in substitution, the
obligation is called facultative.
Statement II is false because if there still remains valid prestation the
obligation is not extinguished. Refer to Art. 1200, The debtor shall have no right to
choose those prestations which are impossible, unlawful or which could not have been
the object of the obligation. The presence of void prestations does not invalidate the
obligation if it includes other undertakings otherwise free from defects.
Statement III is an alternative obligation. Refer to Art. 1199. A person
alternatively bound by different prestations shall completely perform one of them.
10. (B)
 Statement I is true. Refer to Art. 1196. Whenever in an obligation a period is
designated, it is presumed to have been established for the benefit of both the creditor
and the debtor, unless from the tenor of the same or other circumstances.
Statement II is false. Refer to Art. 1195. Anything paid or delivered before the
arrival of the period, the obligor being unaware of the period, may be recovered, with
the fruits, and interests.
11. (C)
Statement I is a divisible obligation because it is capable of partial
performance, refer to Art. 1223.
Statement II is an indivisible obligation because it is not capable of partial
performance, refer to Art. 1225.
Statement III is a divisible obligation because it need not be fulfilled at one
time. Also refer to Art. 1225, Obligations which have for their object the execution of a
certain number of days of work shall be divisible.
12. (A) The partial loss of the thing is considered as a total loss, when the loss is so material
and the remaining portion of the object is insignificant or immaterial.
13. (D) Yes, the conversion of the land into commercial by ordinance is valued under the
police power of the state. There is a clear case of impossibility of performance. The
stipulation in the contract that it shall be used exclusively for residential purposes
becomes futile because the laws state under Article 1266, the debtor in obligation to
do shall also be released when the prestation becomes legally or physically impossible
without the fault of the obligor.
14. (B) The action will not prosper. The obligation is to be performed "within a reasonable
time", the performance of which is in the future, that is, after the obligation was
contracted. It is therefore subject to a period. The right of Sinigang is to go to court so
that the court will fix the date of performance. After the date is fixed and still, the
debtor cannot comply with his obligation, specific performance is the right of the
creditor.
15. (A) Yes, because the obligation is solidary. Article 1221, paragraph 2 states that if
there was fault on the part of any one of them, all shall be responsible to the creditor,
for the price and the payment of damages and interest, without prejudice to their action
against the guilty or negligent debtor.
16. (A) If the thing proceeds from a criminal offense, the loss of such a thing shall not
extinguish the obligation unless the creditor is in default.
17. (D) In this case, the right of Mina is to demand the value of the car from Mina or Mima
plus damages. If Mina paid the value of the car, he may ask reimbursement from Mima
 for the amount he paid Namy. Mima shall shoulder the full amount paid because he is
the one at fault.
18. (D) Article 1226 of the Civil Code states the exceptions where aside from penalty,
damages and interest may be demanded by the creditors: (a) When it is stipulated, (b)
When the debtor is guilty of fraud, (c) When the debtor refuses to pay the penalty.
19. (D) Any waiver of an action for future fraud is void. If the parties agreed for a waiver of
a fraud that is to be committed is void. The law discourages the employment of fraud
even if consent for its commission has been granted. Thus, a debtor will still be liable for
fraud committed even if there is such a waiver.
20. (D) Travis can demand that Taylor pay him in bills or other coins with higher
denominations. If Taylor insists on paying with P1 coins, Travis can reject the payment
and Taylor cannot resort to consignation. Consignation is a legal remedy for a debtor
who wants to extinguish his obligation by depositing the payment in court when the
creditor refuses to accept it without just cause.
21. (B) This is not one of the cases where consignation alone would suffice as provided
under Article 1256 of the Civil Code of the Philippines. The other options are all
valid instances where tender of payment is not necessary before the debtor can consign
the thing due to the court.
22. (B) Confusion is a mode of extinguishing obligations wherein the characters of
creditor and debtor are merged in the same person. In this case, Merry, who was the
original creditor, became the final holder of the promissory note after a series of
assignments. Thus, Merry is both the creditor and debtor of the obligation, and there is
no one to demand payment from or to pay to.
23. (B) Refer to Art. 1245, Dation in payment whereby property is alienated to the
creditor in satisfaction of a debt in money, shall be governed by the law of sales.
24. (A) According to Article 1236 of the Civil Code of the Philippines1, the creditor
(Candy) is not bound to accept payment or performance by a third person (Tyrone) who
has no interest in the fulfillment of the obligation, unless there is a stipulation to the
contrary. However, if the creditor accepts the payment, the debtor (Shanti) is released
from his obligation. The consent or knowledge of the debtor is not required for the
validity of the payment, but it may affect the right of reimbursement of the third person.
25. (A) Delegacion is a type of novation by change of debtor, which consists in the
substitution of the original debtor by a new one who assumes the obligation with the
consent of the creditor and the original debtor. In this case, Damon (the original debtor)
proposed to Elena (the creditor) that Stefan (the new debtor) will assume his debt, and
 Elena accepted the proposal. Therefore, there was a delegacion between Damon, Elena,
and Stefan.
26. (D) According to Article 1240 of the Civil Code of the Philippines, payment shall be
made to the person in whose favor the obligation has been constituted, or his successor
in interest, or any person authorized to receive it.
27. (A) Stated in Article 1270 of the Civil Code of the Philippines, condonation or remission
is essentially gratuitous, and requires the acceptance by the obligor. It may be made
expressly or impliedly. One and the other kind shall be subject to the rules which govern
inofficious donations. Express condonation shall, furthermore, comply with the forms of
donation.
28. (B) According to Article 1278 of the Civil Code, obligations arising from criminal
offenses are not subject to compensation. Therefore, Riguel cannot offset his debt of
support with Lily’s debt of business loan. However, Lily can claim compensation for her
debt of business loan with Riguel’s debt of support, since the latter is not prohibited by
law. This is based on the principle of facultative compensation, which allows one party
to compensate his debt with another debt that is not compensable by the other party.
29. (D) The debtor and the creditor refer to only one person. This is because merger is a
mode of extinguishing obligations when the qualities of creditor and debtor are merged
in the same person
30. (A) Subsidiary or alternative penalty - in case of non-performance, only the penalty is
demandable.
31. (C) Prescription is the mode of acquiring or losing a right through the lapse of time. It
can also be a mode of extinguishing obligations when the creditor does not enforce his
right within the period provided by law.
32. (C) Joint or cumulative penalty - both the principal undertaking and the penalty may be
demanded.
33. (B) No, because when the principal obligation is extinguished, accessories will follow.
34. (A) Yes, due to his negligent decision to place the order. He shouldn't have instructed
the child to ascend the dangerous tree, which can be seen as a hazardous situation. In
this instance, there's no criminal responsibility since there was no intent to harm the
child; instead, liability arises from negligence or torts.
35. (D) Requisites or elements to concur before the person is liable for quasi-delict. 1) The
act or omission complained of is due to the fault or negligence of the offending party. 2)
The act or omission causes damage or injury. 3) There is a direct relation of cause and
effect between the fault or negligence and the damage or injury. 4) There is no pre-
existing relation between the offender and the offended parties.
36. (C) Kinds of negligence (1) Culpa acquiliana or quasi-delict - The negligence as a source
of an obligation. (2) Culpa contractual - The negligence in the performance of an
obligation arising from contract. (3) Culpa criminal-That negligence that results in a
crime.
37. (D) No, No (1) Our Supreme Court repeatedly stated in its decisions that defective
brakes, the blowout of tires and others of similar nature cannot be classified as
fortuitous event per se within the meaning of the law. (2) The weight of authority
sustains the view that a passenger is entitled to recover damages from the carrier for an
injury resulting from a defect in an equipment purchased from a manufacturer, unless
extraordinary diligence has been exercised with regard to inspection and application of
the necessary tests.
of risk.
38. (B) When a debtor is unable to fulfill his obligation because of a fortuitous event, his
obligation to comply is extinguished subject to the following exceptions: (1) When
stipulated by the parties that the happening of an event fortuitous in nature shall not
exempt the debtor from his liability. (2) When the law expressly provides. (3) Where
the nature of the agreement requires the assumption of risk. This is known as the
doctrine of "assumption of risk". It refers to a situation in which the obligor or debtor
with full knowledge of the risk, voluntarily assumes such risk.
39. (D) These are the obligations of a person obliged to give a determinate thing:
1. To deliver the thing
2. To take care of the thing with the proper diligence of a good father of a family
(Art. 1163, Civil Code).
3. To deliver all accessions and accessories (Art. 1166, Civil Code)
4. To pay damages in case of breach of the obligation (Art. 1170, Civil Code)
40. (B) Because Anton voluntarily prevented the fulfillment of the condition, the action of
Anton will not prosper. The obligor must be released in whole or in part.
41. (B) Before substitution: if the principal thing is lost due to debtor's, there is no more
obligation.
42. (C) Fraud Art. 1338 defines fraud when through insidious words or machinations of
one of contracting parties, the other is induced to enter into a contract, without which,
he would not have agreed.
43. (D) A bank deposit is a contract where a person delivers money or other consumable
thing to another, who is obliged to return an equal amount of the same kind and quality.
It is a loan obligation that can be compensated with another loan obligation, provided
that the other requisites of legal compensation are present.
44. (A) According to Article 1215 of the Civil Code of the Philippines, novation,
compensation, confusion or remission of the debt, made by any of the solidary creditors
or with any of the solidary debtors, shall extinguish the obligation, without prejudice to
the provisions of article 1219.
45. (B) A will shoulder P5,000.00, while C will shoulder P15,000.00. This is because X’s
renunciation of A’s share does not affect A’s liability to B and C, who are his co-debtors.
Since B became insolvent, A and C have to pay his share equally. Thus, A has to pay
P5,000.00 (half of B’s share plus his own share), while C has to pay P15,000.00 (half of
B’s share plus his own share).
46. (C) Both dacion en pago and payment by cession have the purpose of satisfying a debt
in money. In dacion en pago, the debtor offers another thing to the creditor who
accepts it as equivalent of payment of an outstanding debt. In payment by cession, the
debtor assigns his property to his creditors in payment of his debts. In both cases, the
creditor receives property instead of money as a mode of payment.
47. (A) Expromision is a mode of substituting the person of the debtor by a third person
who assumes the obligation, either spontaneously or by instigation of another, without
the consent or even against the will of the original debtor. Delegacion, on the other
hand, is a mode of substituting the person of the debtor by a third person who is
accepted by the creditor at the request of the original debtor1. Therefore, expromision
does not require the consent of the debtor, while delegacion does.
48. (A)
Statement 1 is true because legal compensation takes place by operation of
law when all the requisites mentioned in Article 1279 of the Civil Code are present,
regardless of the place of payment of the debts. The place of payment is not one of the
requisites for legal compensation.
Statement 2 is true because compensation cannot be set up against a creditor
who has a claim for support due by gratuitous title.
49. (B)
Statement 1 is true because novation may take place by changing the object or
principal conditions of the obligation, by substituting the person of the debtor, or by
subrogating a third person in the rights of the creditor.
Statement 2 is false because if the old obligation is void, the novation will also
be void, unless the cause of nullity only affects the personal rights of the creditor or
debtor.
50. (B)
 Statement 1 is true because according to Article 2080 of the Civil Code of
the Philippines, the guarantors, even though they be solidary, are released from their
obligation whenever by some act of the creditor they cannot be subrogated to the
rights, mortgages, and preferences of the latter.
Statement 2 is false because according to Article 1278 of the Civil Code of
the Philippines, compensation shall take place when two persons, in their own right, are
creditors and debtors of each other.
51. (D) Refer to Article 1216. The creditor may proceed against any one of the solidary
debtors or some or all of them simultaneously.
52. (C) Refer to Article 1160. Obligations derived from quasi-contracts shall be subject to
the provisions of Chapter 1, Title XVII of this book [Obligations and Contracts]. Where
will give us Article 2169 Other quasi-contracts.
53. (C)
Statement I is true. Refer to Art. 1179. Conditional obligations are those
whose performance depends upon a future or uncertain event, or upon a past event
unknown to the parties.
Statement II is true. Refer to Art. 1193. Obligations for whose fulfillment a
day certain has been fixed, shall be demandable only when that day comes [future].
Obligations with a resolutory period take effect at once, but terminate upon arrival of
the day certain [future].
54. (B) Letter B is an obligation with a penal clause, refer to Article 1226 and Article
1227. In obligations with a penal clause, the penalty shall substitute the indemnity for
damages and the payment of interests in case of non-compliance, if there is no
stipulation to the contrary. The debtor cannot exempt himself from the performance of
the obligation by paying the penalty, save in the case where this right has been
expressly reserved for him. Neither can the creditor demand the fulfillment of the
obligation, and the satisfaction of the penalty, unless this right has been clearly granted
by him. Letter A is a facultative obligation, refer to Article 1206. Letter C is an
alternative obligation, refer to Article 1199.
55. (C) Refer to Article 1193. Obligations for whose fulfillment a day certain has been
fixed, shall be demandable only when that day comes [suspensive period, ex die].
Obligations with a resolutory period take effect at once, but terminate upon arrival of
the day certain [resolutory period, in diem]. Also refer to Art. 1180, when the debtor
binds himself to pay when his means permit him to do so, the obligation shall be
deemed to be one with a period.
56. (C) Refer to Article 1162. Letter A and D are requisites of a quasi-delict while Letter B
is a distinction of quasi-delict from a crime, which affects the public interest.
57. (A) Refer to Article 1199 and Art. 1200. A person alternatively bound by different
prestations shall completely perform one of them. The right of choice belongs to the
debtor, unless it has been expressly granted to the creditor.
58. (D) Refer to Article 1217. He who made the payment may claim from his co-debtors
only the share which corresponds to each, with the interest for the payment already
made. If the payment is made before the debt is due, no interest for the intervening
period may be demanded.
59. (A)
Statement I is true, refer to Article 1226. In obligations with a penal clause,
the penalty shall substitute the indemnity for damages and the payment of interest in
case of non-compliance, if there is no stipulation to the contrary.
Statement II is false, refer to Article 1227. The debtor cannot exempt
himself from the performance of the obligation by paying the penalty, save in the case
where this right has been expressly reserved for him.
60. (A) Refer to Article 1161. Letter A is true because this deals with civil liability for
damages arising from delict. The rule has been established that every person criminally
liable for an act or omission is also civilly liable for damages suffered by the aggrieved
party. This principle would make Letter C false. Letter B is also false because civil
obligations arising from criminal offenses shall be governed by the penal code laws,
subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2,
Preliminary Title, on Human Relations, and of Title XVIII of this Book [Obligations and
contracts], regulating damages.