BL.

M-1401
LAW ON OBLIGATIONS
1. Obligations may arise from any of the following, except:
a. Contracts
b. Quasi-contracts
c. Law
d. Negligence
2. A juridical necessity to give, to do or not to do
a. Civil Obligations
b. Natural Obligations
c. Moral Obligations
d. Social Obligations
3. It is the voluntary administration of property of another without his consent
a. Negotiorum Gestio
b. Solutio Indebiti
c. Quasi Delict
d. Contract
4. It is a wrong committed without any pre-existing relations between the parties
a. Natural Obligations
b. Quasi Delict
c. Quasi Contract
d. Culpa Contractual
5. The following are the requisites of an obligations, except:
a. Passive Subject, Debtor or Obligor
b. Active Subject, Creditor or Obligee
c. Efficient Cause
d. Presentation
6. Where A voluntarily takes charge of the neglected business of B without the latters authority
where reimbursement must be made for necessary and useful expenses, there is a:
a. Quasi Delict
b. Quasi Contract
c. Negotiorum Gestio
d. Solutio Indebiti
7. It is a thing that is particularly designated or physically segregated from all others of the same
class:
a. Generic Thing
b. Indeterminate Thing
c. Determinate Thing
d. Real Thing

8. The sources of liability for damages are the following, except:

a. Fraud
b. Negligence
c. Delay
d. Quasi-Delict
9. They give a right of action to compel their performance
a. Civil Obligation
b. Moral Obligations
c. Natural Obligations
d. Social Obligations
10. This is based on equity and justice
a. Civil Obligation
b. Moral Obligations
c. Natural Obligations
d. Social Obligations
11. The efficient cause or juridical tie why the obligations exists
a. Active Subject
b. Passive Subject
c. Prestation
d. Vinculum
12. The following are sources of obligation derived from law, except:
a. Contract
b. Quasi Contract
c. Delicts
d. Quasi Delicts
13. The duty to pay taxes and to support ones family are obligations arising from
a. Law
b. Contracts
c. Quasi Contracts
d. Delicts
14. Damages awarded for mental and physical anguish
a. Moral
b. Exemplary
c. Nominal
d. Temperate
15. Damages awarded to vindicate a right
a. Liquidated
b. Actual
c. Nominal
d. Exemplary
16. When the exact amount of damages cannot be ascertained
a. Exemplary

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b. Liquidated
c. Temperate
d. Moral
Damages predetermined beforehand
a. Temperate
b. Liquidated
c. Actual
d. Moral
The creditor has a right that is enforceable against a definite passive subject. This right is
known
a. Personal Right
b. Real Right
c. Natural Right
d. Civil Right
The obligee has a right to enforce the obligations against the obligor in a court of law
a. Civil Obligation
b. Moral Obligations
c. Natural Obligations
d. Social Obligations
The duty not to cover what has voluntarily been paid although payment was no longer
required
a. Civil Obligations
b. Natural Obligations
c. Moral Obligations
d. Juridical Obligations
Cannot be enforced by court action and depend exclusively upon the good conscience of the
debtor
a. Civil Obligations
b. Natural Obligations
c. Moral Obligations
d. Juridical Obligations
The obligations of husband and wife to render mutual help and support arises from
a. Contract
b. Law
c. Quasi Contract
d. Quasi Delict
Whenever in an obligation a period is designated, it is presumed to have been established for
the benefit of:
a. Both of the creditor and debtor
b. The creditor
c. The debtor
d. the third party

24. One of the following is a specific thing:

a. Toyota Fortuner car
b. Mitsubishi Outlander car
c. Isuzu Altera
d. An old yellow jeep with plate number ABC123
25. This refers to delay on the part of the creditor
a. Mora Solvendi Ex re
b. Compensatio Morae
c. Mora Solvendi Ex Persona
d. Mora Accipiendi
26. It refers to a joint obligations:
a. One in which each debtor is liable for the entire obligation, and each creditor is entitled
to demand the whole obligations
b. One in which either one of the parties is indispensable or the other is not necessary.
c. One in which the obligation of one is a resolutory condition of the other, the nonfulfilment of which entitles the other party to rescind the contract
d. One in which each of the debtors is liable only for a proportionate part of the debt and
each creditor is entitled only for a proportionate part of the credit
27. When the fulfilment of the condition depends upon the sole will of the debtor, the conditional
obligations shall be:
a. Voidable
b. Unenforceable
c. Valid
d. Void
28. Unless the law or the stipulation of the parties requires another standard of care, the
obligation to give a thing carries with it the obligation to take care of it with:
a. Extra-ordinary diligence
b. Degree of care agreed upon by the parties
c. Diligence of a Good Father of a Family
d. Diligence of a Good Family of a Father
29. A entered into a contract with B by which A promised to deliver at a price stipulated in the
contract. Such delivery is made on February 14, 2001 with penalty in case of default. In this
case, no further demand by B on A is necessary to consider A in delay because:
a. Time is of the essence of the contract
b. The obligation expressly so provides
c. The demand would be useless
d. Answer not given
30. If the creditor to whom tender of payment has been made refuses without just cause to accept
it, the debtor shall be released from responsibility by:
a. Assignment of property
b. Consignation of the thing or sum due
c. Adjudication or dacion en pago

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d. Condonation
A executes a promissory note in favour of B who subsequently indorsed it in favour of A. The
obligation to pay the promissory note is thereby extinguished because there is?
a. Confusion or Merger
b. Novation
c. Remission
d. Compensation
The distinction between conventional subrogation and assignment is that in conventional
subrogation:
a. It is a mere cession of right
b. An obligation is extinguished and another appears
c. The same obligation, without being extinguished
d. The debtors consent is necessary
If the obligor binds himself to perform his obligations as soon as he shall have obtained the
loan from a certain bank, this obligation is:
a. With a term
b. Conditional
c. Suspensive
d. Resolutory
It presupposes not only that the obligor is able, ready and willing but more so, in the act of
performing his obligation:
a. Promissory Note
b. Tender of Payment
c. Bill of Exchange
d. Obligation to Sell
Acceptance of a commercial document is equivalent to payment
a. The check has been received as payment
b. The check became valueless because of the creditors fault
c. The check is a managers check or cashiers check
d. The promissory note is used as payment
The debtor shall lose every right to make use of the period except:
a. When after the obligation has been contracted he becomes insolvent, unless he gives a
guaranty or security for the debt
b. When he does no furnish a guaranty or security for the debt
c. When the debtor attempts to abscond
d. When he violates any undertaking in consideration of which the creditor agreed to the
period.
When the debtor binds himself to pay when his means permits him to do so is one:
a. With a condition dependent upon the debtors will
b. With the resolutory period upon the debtors will
c. With the suspensive period dependent upon the debtors will
d. With the condition to be fixed by court

38. When the debtor binds himself to pay when his means permits him to do so, the obligations is:
a. Conditional
b. Pure
c. Simple
d. With a Period
39. In three of the following cases, advance payment by the debtor is not recoverable. Which is
the exception?
a. The obligation was not yet due and demandable but the debtor believed it was already
due and demandable
b. The payment is only for interest and credited for the proper period
c. The advance payment was made by both parties reciprocally
d. The debtor was aware of the period
40. This is payment in kind:
a. Consignation
b. Payment by cession
c. Dation en pago
d. Application of payment
41. When the obligation is extinguished because of the passage of time:
a. Fulfilment of resolutory condition
b. Arrival of resolutory period
c. Prescription
d. Rescission
42. The source of obligation which is a rule of conduct, just and obligatory, promulgated by
legitimate authorities for common good, benefit and observance
a. Contracts
b. Quasi contracts
c. Delicts
d. Law
43. 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 proper diligence
a. Observing utmost care
b. Observing extraordinary care
c. Of a father of a good family
d. Observing ordinary diligence
44. Ordinary diligence is
a. Diligence of a good father of a family
b. Extraordinary diligence
c. Diligence required by law
d. Diligence of a father of a good family
45. The following are kinds of fruits of an obligations, except
a. Natural
b. Civil

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c. Industrial
d. Penal
Spontaneous products of the soil and the offspring and other products of animals
a. Natural
b. Industrial
c. Civil
d. Penal
The following except one, are included in civil liability. The exception is
a. Restitutution
b. Reparation
c. Indemnification
d. Compensation
The obligation begins only from a day certain or upon arrival of the period
a. Ex die
b. In diem
c. Conditional
d. With a period
In a joint obligation, joint means any of the following, except
a. Pro rata
b. Proportionate
c. Mancomunada simple
d. Individually and collectively
Where two or more prestations have been agreed upon, and all of them must be performed,
the obligation is
a. Alternative
b. Facultative
c. Conjoint
d. Solidary
The transfer to a third person of all the rights appertaining to the creditor including the right to
proceed against the guarantors, or possession of mortgages, subject to any legal provision or
modification that may be agreed upon
a. Novation
b. Delegacion
c. Expromission
d. Subrogation
Compensation cannot take place, except
a. When one debt arises from the obligation of a depositary
b. when one debt arises from the obligations of a bailee in a commodatum
c. when one debtarises because a claim for support due to gratuitous title
d. when one debt arises from a bank deposit

53. Action where a person in possession of certain property may bring an action against the
conflicting claimants to compel them to interplead and litigate their several claims among
themselves.
a. Garnishment
b. Interpleader
c. Injunction
d. Attachment
54. X is under obligation to deliver Ys car to the latter. However, before delivery Z destroys the car.
Which is incorrect?
a. Xs obligation to deliver the car to Y is extinguished
b. X is allowed to recover from Z
c. Y has the right to bring an action against Z
d. X is not obliged to give Y an equivalent value of the car
55. When the debtor binds himself to pay when his means permits him to do so, the obligation is
a. Conditional
b. pure
c. Simple
d. With a period
56. Ray signs a promissory note and binds himself to pay Rex P100,000 plus 15% per annum
interest on June 30, 2014.
a. Before June 30, 2014, Rex can demand payment
b. If on June 30, 2014 Ray is paying Rex, the latter can refuse payment
c. Ray can compel creditor Rex to accept payment before June 30, 2014
d. Because the period is for the benefit of the debtor and creditor, Rex can refuse any
tendered payment before June 30, 2014
57. The debtor shall lose the right to make use of the period in the following cases, except:
a. When he becomes insolvent
b. When he violates any undertaking in consideration of which the creditor agreed to the
period
c. When the debtor attempts to abscond
d. When he does not furnish any guaranty or security to the creditor
58. D is obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as a
substitute. Which is TRUE?
a. If the ring is lost through a fortuitous event before substitution, the obligation is
extinguished
b. If the bracelet is lost through a fortuitous event before substitution, the obligation is
extinguished
c. If the ring is lost through a fortuitous event after substitution, the obligation is
extinguished
d. If the ring is lost through the debtors fault after substitution, the debtor shall pay
damages.

59. A entered into a contract with B by which A promised to deliver at price stipulated in the
contract. Such delivery is to be made on February 14, 2001 with penalty in case of default. In
this case, no further demand by B on A is necessary to consider A in delay because:
a. Time is of the essence
b. The obligation expressly so provides
c. The demand would be useless
d. Answer not given
60. When the period is on or before a date, the debtor has the benefit for the period. This
benefit is lost and obligation becomes demandable when
a. The debtor attempts to abscond
b. After contracting the obligations, the creditor suspects the debtor of becoming insolvent
c. The guarantee given is not acceptable by the creditor
d. Demand by creditor is useless
61. One of the following shall produce the effect of payment of debts
a. Delivery of checks
b. Tender of central bank notes
c. Delivery of promissory Note
d. Dacion en Pago
62. A promissory note signed by A dated March 15, 2015 is worded as follows I promise to pay B
the sum of fifty thousand pesos provided that if she should fail in October 2015 CPA Exam, she
shall return to me the said amount. The above note gives rise to an obligation with:
a. Suspensive condition
b. Casual condition
c. Resolutory condition
d. Answer not given
63. Which of the following is not considered as quasi contract?
a. Solution Indebiti
b. When the third person without the knowledge of the debtor, pays the debt
c. Negotiorum Gestio
d. Reimbursement due to a person who saved the property during fire or storm without
the owners knowledge
64. In tender and consignation, if after consignation is made, the creditor allows the debtor to
withdraw the thing deposited in court, which is not true?
a. Co-debtors, guarantors and securities are released from the obligation unless they
consented
b. The obligation remains to subsist
c. The obligation is extinguished
d. None of the above.
65. D owes C P10,000 payable December 25, 2015. Later D forced C to sign a promissory note for
P10,000 payable on December 25, 2015. If all other requisites of compensation are present, are
both debts extinguished?
a. Yes, under legal compensation

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b. No, Bs consent was obtained by force

c. Yes, with the approval of the court
d. Answer not given.
X has been missing for some time leaving no one to manage his properties. A and B jointly took
charge of the management thereof. However, due to the fault of A, the properties of X were
damaged. The liability therefore to X for damages shall be:
a. Only A shall be liable
b. Both shall be jointly liable
c. Both shall be solidarily liable
d. They are not liable since x is at fault
A owes B sum of money evidenced by a promissory note which has prescribed. X, without the
knowledge of A, paid B his debt. Later A reimbursed X for the payment of the latter to B
although he has no obligation to do so.
a. A can recover his reimbursement to X to prevent unjust enrichment on Xs part at the
expense of A
b. A cannot recover because he has the civil obligation to reimburse X for the latter paid
his debt to B
c. A cannot recover because the payment partakes of natural obligation
d. A cannot recover since there was reimbursement by mistake
A bought strawberry jams from a grocery store of Ray Moon Ace Calla Lily Corp. and was
hospitalized due to food poisoning as a result of toxic substance contained in the said jam sold
by the Ray Moon Ace Calla Lily Corp. A is now suing the said corporation for damages. Decide:
a. A has no right to claim damages from the producer because there was no contract
between them.
b. Ray Moon Ace Calla Lily Corp., is not liable to A because the latter was negligent in
eating the straw berry jams despite the presence of harmful substance therein.
c. A must claim damages from the grocery store because under quasi contract due to its
negligence in the preparation of the strawberry jams causing damage to A.
d. Ray Moon Ace Calla Lily Corp. is liable for damages under Quasi delict due to its
negligence in the preparation of the strawberry jams thus causing damage to A
In three of the following cases, advance payment by the debtor is not recoverable. Which is the
exception?
a. The obligation was not yet due and demandable but the debtor believed it was already
due and demandable.
b. The payment is only interest and credited to the proper period.
c. The advance payments were made by both parties reciprocally.
d. The debtor was aware of the period.
When the debtor abandons or transfers all his properties to his creditors so that the creditors
may sell the properties and out of the net proceeds the creditors recover their claims, this is
called:
a. Dacion en pago
b. Tender of payment and consignation

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c. Payment by cession
d. Remission
Debtors default in real obligation
a. Mora accipiendi
b. Mora solvendi ex- re
c. Mora solvendi ex persona
d. Compensatio morae
Where demand by the creditor shall be necessary in order that delay may exist
a. When time is of the essence of the contract
b. When demand would be useless
c. When the obligor has expressly acknowledged that he is in default
d. When the obligor requested for an extension of time
Novation which changes the object or the principal condition of the obligation
a. Real
b. Personal
c. Mixed
d. Partial
Novation which changes the parties to the obligation
a. Real
b. Personal
c. Mixed
d. Partial
Novation which changes the object and parties of the obligation
a. Real
b. Personal
c. Mixed
d. Partial
The act of putting somebody onto the shoes of the creditor enabling him to exercise all the
rights and action that could have been exercised by the latter.
a. Agency
b. Partnership
c. Subrogation
d. Novation
XYZ are jointly and severally liable to Andrew for P30, 000 which matures on June 15, 2013. On
May 1, 2013, X paid Andrew for the whole amount of the debt. If on Dec. 1, 2013, X will be
reimbursed by Y, the latter will be liable for:
a. P10, 000 with interest from June 15, 2013 to December 1, 2013
b. P10,000 without interest
c. P10,000 with interest from May 1, 2013 to June 15, 2013
d. P10,000 with interest from May 1,2013 to Dec. 1, 2013
A, B and C solidarily debtors owe solidary creditors X and Y P299, 999. 00.X remitted the entire
obligation in favor of A. The effect is:

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

b. The obligation is not yet extinguished until Y is paid by X his share of the credit.
c. A cannot recover from B and C because remission in his favour extend to the benefit of
B and C under the principal of all for one and one for all
d. A can recover from B and C their respective share of the debt.
A owes B P150, 00 due on October 31, 2013. A executed a mortgaged in favor of B on As
building to guaranty the obligation. On October 18, 2013, B demanded payment from A. is Bs
demand valid?
a. No. The obligation is one with a definite period, thus the creditor cannot demand
fulfilment of the obligation before it due.
b. No. The mortgage was extinguished because of the contract was lost even though
through a fortuitous event.
c. Yes. The debt becomes due at once because the guarantee was lost even though
through a fortuitous event, unless the debtor can mortgage another performance even
before the due date.
d. Yes. The debt becomes due at once because the periods benefit is given solely to the
creditor thereby giving the creditor the right to demand performance even before the
due date.
An obligation ceases to be alterative and becomes a simple obligation in the following cases,
except:
a. When the debtor has communicated his choice to the creditor
b. When the right of choice has been expressly granted to the creditor and his choice has
been communicated to the debtor.
c. When among the several prestations that are due only is practicable.
d. When among the several prestations that are due but the performance of one is to
extinguish the obligation.
A, B and C are joint creditors of E and F, solidary debtors in the amount of P1000, 000. 00. How
much can A, B, C collect from E?
a. A, B and C could collect P 50,000.00 from E.
b. A, B and C could collect P 75,000.00 from E.
c. A, B and C could collect all the P 25,000.00 from E.
d. A, B and C could collect P 25,000.00 from E and P 75,000 from F.
X and Y are solidary debtors of A, B, C, and D joint creditors to the amount of P80,000. How
much can A collect from X?
a. A could recover P 80, 000 from X. A, in turn has to give to B, C and D P20, 000 each.
b. A could recover P 40,000 only from X.
c. A could recover P 20,000 only from X.
d. A could recover P 80, 000 from X. A, in turn does not have to give to B, C and D P 20,000
each.
D 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 Ds fault, successively. What is the right of c?

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a. C may choose the delivery to him of the bracelet, or the price of the watch or the price
of 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. C can only choose to have delivery of the bracelet or the price of the ring which was the
last item that was lost plus damages.
A, B, and D, solidary debtors, are obliged to give V, W, Y and Z, joint credits, P2000, 000. 00
a. V may collect from C P 200, 000. 00
b. V may collect from C P 40, 000. 00
c. V may collect from C P 50, 000. 00
d. V may collect from C P 10, 000. 00
This is a promissory note: I promise to pay A, B and C the sum of P 45,000. 00." (signed) D, E
and F.
a. F is obliged to pay C P 15, 000. 00
b. F is obliged to pay C P 13, 999, 000. 00
c. F is obliged to pay C P 145, 000. 00
d. F is obliged to pay C P 16, 000. 00
In alternative obligation, the right of choice belongs to:
a. The creditor
b. The debtor
c. Both the creditor and the debtor
d. Third person
In facultative obligation, the right of choice belongs to:
a. The creditor
b. The debtor
c. Both the creditor and the debtor
d. Third person
D borrowed P 50, 000. 00 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 right to the debt will pass
on to the heirs of C.
b. S cannot collect because the credit right is personal to C.
c. S can collect only if D and C agreed that the right to the debt will pass on the heirs of C.
d. S cannot collect because the law prohibits the transmission of the credit right.
A and B promised to deliver car valued at P 100, 000 to C on or before December 15, 2013. Dec.
15, 2013 came and upon demand by C of delivery from A and B, A is willing to deliver but B
refused to deliver. In the case at bar:
a. An action for specific performance will lie against both A and B
b. Both A and B shall be liable for P 50, 000 each with damages

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c. B shall be liable for P 50, 000 without damages and A shall be liable for P 50, 000 with
damages
d. C can demand delivery of the car from A or B
A owes B who has 11 legitimate children, P99, 000 payable on demand on December 31, 2013
a. If A dies before Dec. 31, 2013, B cannot collect from the heirs of A.
b. If A dies before Dec. 31, 2013, B can collect from the heirs of A.
c. If B dies, his eleven legitimate children cannot recover from A his obligation.
d. If both A and B die, the heirs of B can collect from the heirs of A.
X by mistake delivered to A and B a sum of money which should have been delivered to C and D.
X now demand the return of the same from A and B. the liability of the latter for the sum of
money to which they are not entitled shall be:
a. A and B shall be liable solidarily
b. A and B shall be liable jointly
c. They are not liable for having received the money in good faith
d. X has no right to recover as he was negligent in the delivery of the money
Specific performance may not be possible in this civil obligation
a. Raymond, a painter, obliges himself to paint the portrait of Andrew on Nov. 29, 2013
b. Fernando, a farmer, obliges himself to give his only cow to Rex on Feb. 14, 2014
c. Andrew, a veterinarian, obliges himself to give one of his dogs to Fernando on Jan. 30,
2014
d. Rex, a registrar of deeds, obliges himself to effect registration of Raymond s parcel of
land on Feb. 28, 2014
This is a valid obligation
a. A will give B P 100, 000 if B will kill C
b. A will give B P 1, 000, 000 if B will agree to be the mistress of A
c. A will give B P 10, 000 if B can make C rise from the dead
d. A will give B P 1, 000 if B will not pose nude in a painting session
A, B, C and D, joint debtors, are obliged to give V, W, X , Y and Z, solidary creditors, P 200,
000.00
a. V may collect from B P 200, 000.00
b. V may collect from B P 40, 000. 00
c. V may collect from B P 50, 000. 00
d. V may collect from B P 10, 000. 00
The loss or deterioration of thing intended as a substitute through the negligence of the obligor
does not render him liable.
A person alternatively bound by different prestations shall completely perform one of them.
a. True, true
b. True, false
c. False, true
d. False, false
A, B, C and D, solidarily debtors, are obliged to give V, W, X, Y, Z, solidary creditors, P 39, 897.
00

a. V may collect from D P 39, 897. 00

b. V may collect from D P 14, 123. 00
c. V may collect from D P 15, 357. 00
d. V may collect from D P 10, 001. 00
97. A, 19, B, 18 and C, 17, are solidary debtors of x in the amount of P 90, 000. 00
a. X may collect A P 90, 000. 00
b. X may collect B P 60, 000. 00
c. X may collect C P 90, 000. 00
d. X may not collect because the obligation is voidable, C being a minor.
98. A, B, and C owned mancomunda solidaria P 15, 000to D as evidenced by a promissory note due
on Sept. 30, 2003. The note prescribed on Oct. 1, 2013. On Oct. 10, 2013 A paid D. In this case,
A is:
a. Entitled to collect P 5, 000 each from B and C
b. Not entitled to reimbursement from his co debtors for the shares of the latter
c. Not entitled to recover from D
d. Answer not given
99. D1, D2 aqnd D3 obliged themselves to solidarily give C a specific car valued at P12,000. On due
date, C demanded delivery but the debtors fail;ed to deliver. The next day, while d1 is still in
possession of the car, it got lost due to a fortuirous event. The right of C is:
a. None, the obligation is totally extinguished.
b. Proceed against any of the debtors for the value and damages.
c. Proceed against D1 only, because he was in possession of the car at the time it was lost.
d. Proceed against D3 only!
100.
A, B and C are joint debtors of joint creditors, W, X, Y and Z, in the amount of P 300,000.
How much can W and X collect from B?
a. P 75, 000
b. P 100, 000
c. P 150, 000
d. P 50, 000