Name:

Course & Year:

Schedule:
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TEST I - MULTIPLE CHOICE. Select the best answer by writing the letter of your choice.
1. The following are the requisites of an obligation, except.
a. passive subject , debtor or obligor.
b. active subject , creditor, or obligee.
c. efficient cause , vinculum juris
d. demand
2. Obligations may arise from any of the following, except:
a. contracts
b. quasi-contracts
c. law
d. prestation
3. It is the voluntary administration of the property of another without his consent.
a. Quasi Contracts
b. Solutio indebiti
c. Quasi-delict
d. Contract
4. It is wrong committed without pre-existing relations between the parties.
a. Natural obligation
b. Quasi-Delict
c. Culpa Aquiliana
d. Contract
5. Unless the law or the stipulations of the parties require another standard of care, every person obliged to
give something is also, obliged to take care of it will.
a. extra-ordinary diligence.
b. diligence of a father of a good family.
c. diligence of a good father of family.
d. good diligence of a father of a family.
6. The creditor has a right that is enforceable against a definite passive subject. This right is known as.
a. personal right
b. real right
c. natural right
d. civil right
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. One of the following is a determinate thing. Which is it?
a. a cow
b. a horse
c. a Toyota car with engine no.12345, body no. 34890 and plate no. ABC 123
d. a ring with diamond embellishment

9. Demand must be made on the due date of the obligation in order for delay to exist in one of the following
cases. Which is it?
a. When it was stipulated by the parties that demand need not be made.
b. When the law provides that demand need not be made
c. When the obligation does not on due date
d. When time is of the essence of the contract
10. This refers to delay on the part of creditor.
a. mora solvendi ex re
b. compensation morae
c. mora solvendi ex personae
d. mora accipiendi
11. There shall be no liability for loss due to fortuitous events in one of the following cases. Which is it?
a. When the debtor delays
b. When the parties so stipulated that there shall ba liability even in case of loss due to fortuitous events
c. When the nature of the obligation requires the assumption of risks
d. When the obligation is to deliver a determinate thing and there was no stipulation as to liability of the
debtor in case of loss due to fortuitous event
12. The following are the remedies of the creditor to pursue his claims against the debtor except to.
a. pursue the property owned and in possession of the debtor.
b. exercise all the rights and bring all the actions of debtor (action sobrogatoria)
c. impugn the acts which the debtor may have done to defraud his creditors (action pauliana)
d. compel the debtor to perform the service in obligations to do
13.) D borrowed P50,000.00 from C. c dies before he has collected the debt leaving S, his son, as heir.
Which of the following statements are correct?
a. S can collect from D although D and C did not agree that the credit right will pass on to the heirs of C.
b. s cannot collect because the credit right is personal to C.
c. S can collect only if D and C agreed that the right credit will pass on the heirs of C.
d. s cannot collect because the law prohibits the transmission of credit rights.
14. D is obliged to give c a specific car if C passes the CPA Licensure examination. Ds obligation is an
example of
a. a pure obligation
b. an obligation with a suspensive condition
c. an obligation with a resolutory condition
d. an obligation with a period
15. One of the following obligations is not immediately demandable.
a. pure obligation
b. obligation with a resolutory condition
c. obligation with an in diem period
d. obligation with an ex die period
16. One of the following is a void obligation:
a. D is obliged to give C P5,000.00 if C does not go to the moon.
b. D is obliged to give C P5,000.00 if D goes to Baguio.
c. D is obliged to give C P5,000.00 if C goes to Baguio.
d. D is obliged to give C P5,000.00 if D wins first prize in the sweepstakes on a ticket that he had already
purchased.

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

a. an obligation with a suspensive condition
b. an obligation with a resolutory condition
c. an obligation with a period
d. a pure obligation
18. When the debtor binds himself to pay when his means permit him to do so, so the obligation is:
a. an obligation with a resolutory condition
b. a pure obligation
c. an obligation with a suspensive condition
d. an obligation with a suspensive period
19. Whenever a period is designated in an obligatiuon, the said period shall be presumed to have been
established for the benefit of:
a. the debtor
b. the creditor
c. both the debtor and the creditor
d. neither of the parties
20. The debtor shall lose the right to make use of the period in the following cases, except when he:
a. becomes insolvent
b. violates any undertaking in consideration of which the creditor agreed to the period
c. attempts to abscond
d. does not furnish any guaranty or security to the creditor
21. An obligation ceases to be alternative and becomes a simple obligation in the following cases except
when:
a. the debtor has communicated his choice to the creditor
b. the right of choice has been expressly granted to the creditor and his choice has been communicated to the
debtor
c. among the several prestations that are due only one is practicable.
d. three prestations are due but one of them is unlawful or impossible
22. D is obliged to give C a specific watch, a specific ring, or a 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?
a. C may choose the delivery to him of the bracelet, or the price of the watch or the price of the ring plus
damages
b. C cannot choose the price of the watch or the price of the ring because the said objects have already been
lost.
c. C can only choose to have the bracelet because anyway, D can still perform his obligation.
d. C can only choose to have a delivery of the bracelet or the price of the ring which was the last item that
was lost plus damages.
23. D is obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as
substitute. Which of the following statements are 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 obligation is extinguished.
24. A, B, C and D are obliged to give V, W, X, Y and Z P20,000.00

a. V may collect from A P20,000.00.

b. V may collect from A P5,000.00
c. V may collect from A P1,000.00
d. V may collect from A P4,000.00
25. A, B, C and D, joint debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P20,000.00
a. V may collect from B P20,000.00
b. V may collect from B P4,000.00
c. V may collect from B P5,000.00
d. V may collect from B P1,000.00
26. A, B, C and D, solidary creditors, are obliged to give V, W, X, Y and Z, joint debtors, P20,000.00
a. V may collect from C P20,000.00
b. V may collect from C P4,000.00
c. V may collect from C P5,000.00
d. V may collect from C P1,000.00
27. A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P20,000.00
a. V may collect from D P20,000.00
b. V may collect from D P4,000.00
c. V may collect from D P5,000.00
d. V may collect from D P1,000.00
28. A, 25, B, 35, and C, 17 are solidary debtors of X in the amount of P9,000.00
a. X may collect from A P9,000.00
b. X may collect from A P6,000.00
c. X may collect from A P1,000.00
d. X may collect nothing because the obligation is voidable, C being a minor.
29. The following obligations are divisible, except an obligation:
a. to give definite things.
b. which has for its object the execution of a certain number of days of work.
c. which has for its object the accomplishment of work by metric units.
d. which by its nature is susceptible of partial performance.
30. In obligations with a penal clause, the creditor as a rule may, recover from the debtor in case of breach
the following:
a. the penalty as agreed upon, plus damages and interest.
b. the penalty and damages.
c. the penalty and interest.
d. only the penalty.
31. Consider the following statements:
I. The nullity of the principal obligation carries with it the nullity of the penal clause.
II. The nullity of the principal obligation does not carry with it the nullity of the penal clause.
III. The nullity of the penal clause carries with it the nullity of the principal obligation.
IV. The nullity of the penal clause does not carry with it the nullity of the principal obligation.
a. Statements I and II are true.
b. Statements I and IV are true.
c. Statements II and III are true.
d. Statements II and IV are true.

32. D borrowed from C P50,000. The obligation is secured by a chattel mortgage on Ds Toyota car.
Subsequently, D paid C P20,000. Unknown to D, T, a third person, pays C P50,000 believing that D still
owed C such amount.
a. T can recover P50,000 from D. If D cannot pay, T can foreclose the mortgage on Ds Toyota car.
b. T can recover nothing from D because he paid c without the knowledge and consent of D.
c. T can recover P30,000 from D. If D cannot pay, T can foreclose the mortgage on Ds Toyota car.
d. T can recover P30,000 from D. If D cannot pay, T cannot foreclose the mortgage on Ds Toyota car.
33. The following statements concerning payment by cession are true, except one. Which is it?
a. The creditors become the owners of the properties of the debtor that were ceded to them.
b. Payment by cession extinguished the obligations only to the extent covered by the proceeds of the sale of
the debtors properties.
c. The debtor must be insolvent.
d. Cession affects all the properties of the debtor except those exempt from execution.
34. D obtained from ABC bank a loan of P12,000,000 payable at the end of ten years. Before maturity, an
extraordinary inflation supervened causing the value of the debt to fall to P4,000,000 on the date of
maturity. On due date, D must pay ABC bank:
a. P12,000,000
b. P4,000,000
c. P36,000,000
d. P3,000,000
35. B borrowed from XYZ bank P2,000,000 at the end of 5 years. Before maturity, an extraordinary
deflation supervened causing the value of the debt to rise to P5,000,000 on the date of maturity. On due
date, B must pay XYZ bank:
a. P2,000,000
b. P5,000,000
c. P800,000
d. P20,000,000
36. The money or currency which the debtor may compel the creditor to accept in payment of a debt,
whether public or private, is known as:
a. Notes payable to order.
b. Legal tender.
c. Bill of exchange.
d. Mercantile document.
37. The delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted
equivalent of performance is known as:
a. Payment by cession
b. Dation in payment
c. Application of payment
d. Consignation
38. D owes C the following debts: P6,000 due on June 12; P6,000 due on June 15; P6,000 due on June 18;
P6,000 due on June 20. All debts are unsecured except the debt due on June 20 which is secured by pledge
of Ds diamond ring to C. By agreement, the benefit of the term on the 4 debts was granted to C. assuming
that D has P6,000 on June 18 and is ready to pay C,which of the following statements is correct?
a. D may apply his payment of P6,000 to any of the debts due on June 12, June 15, and June
18 since they are all due as of June 18.

b. D may apply his payment only to the debt due on June 20 because it is the most burdensome to him.
c. D must apply the payment proportionately to the debts due as of June 18 at P2,000 each.
d. D may apply the payment to any of the four debts
39. The offer made by the debtor to pay his obligation to his creditor is known as:
a. Consignation.
b. Tender of payment.
c. Application of payment.
d. Dation of payment.
40. 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.
41. M owes P 10,000. The obligation is evidenced by a promissory note. Subsequently, P assigned the note
to A, A to B, B to C, C back to M. The obligation of M is extinguished by:
a. compensation
b. confusion
c. condonation
d. The obligation is not extinguish because there was no payment
42. In order that condonation may extinguish an obligation involving a movable property whose value
exceeds P5,000
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 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 only
43. One of the following is not a requisite of legal compensation. Which is not? a. That each one of the
obligors be bound principally, and that he be at the same time a principal creditor of the other.
b. That the two debts is due
c. That both debts be liquidated and demandable
d. That the debts are payable at the same place
44. Henry, husband and Wilma, wife are legally separated. By order of the court which decreed the legal
separation, Henry is obliged to give a monthly support of P10,000 to Wilma payable within the first days of
the month. Wilma owes Henry P10,000 by the way of business loan. On the other hand, Henry has not yet
given Wilmas support of P10,000 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. Wilma may claim compensation but not Henry
c. Henry may claim compensation but not Wilma
d. Neither one may claim compensation because the debts are not of the same kind.
45. D owes C P10,000 with G as guarantor. C, on the other hand, owes D, P8,000. Both debts are already
due but D is insolvent. In this caseA. C may collect from G P10,000 B. C may collect from G P2,000 because a guarantor can set up
compensation as regards what the creditor owes the principal debtor. C. C may collect nothing from G
because D is insolvent
D. C may collect P8,000 form G.
a. The contract is perfected on January 5, when the ring is delivered by S to B.

b. The contract is perfected on January 1, when the parties had a meeting of minds on the object and the
price.
c. The contract is perfected on January 7, when the price is paid, since both parties would by then have
performed their obligations in the contract.
d. There is no perfected contract because the sale was made orally.
46. D borrowed P50,000 from C. Subsequently, D proposed to C that T would assume his (Ds) debt. C
accepted the proposal of D. This substitution of debtor is known asa. Expromission
b. Delegacion
c. Tradition
d. Dacion en pago
47. Refer to the facts in No. 46. Assume also that on due date, T could not pay because of his insolvency
which was in fact subsisting but was not known to D delegated his debt. In this casea. C can revive Ds debt because Ts insolvency was already existing at the time that D delegated his debt.
b. C can revive Ds debt whether or not he (D) was aware of Ts insolvency since he (D) proposed the
substitution.
c. C cannot hold D liable because his (Ds) obligation was extinguished by T.
d. The novation is void because D did not take steps to determine the solvency 0f (T) when he (D) delegated
his debt.
48. D obliged himself to give 5 grams of shabu to C. Later, the parties agreed that D would instead give to
C 5 sacks of rice. Which of the following statements is correct?
a. The novation is void because the original obligation is void. Hence, C cannot demand the delivery of 5
sacks of rice from D.
b. The original obligation although void is validated by the new obligation. Hence, C can demand the
delivery of 5 sacks of rice from D.
c. The new obligation is only voidable because D had not yet performed the original obligationat the time of
the novation. Accordingly, the new obligation is binding and C may demand the delivery of 5 sacks of rice
from D until the new obligation is annulled by a proper action in court.
d. The novation is valid because the new obligation is valid. Hence, C can demand the delivery of 5 sacks of
rice from D.
49. On July 1, 2010, D obliged himself to give C P50,000 if C will marry X on or before December 31,
2010. The condition of the obligation is a:
a. Positive condition
b. Negative condition
c. Joint condition
d. Impossible condition
50. Refer to No. 49. Which of the following statements is incorrect?
a. The obligation of D is demandable if C marries X on or before December 31, 2010.
b. The obligation of D is extinguished if it is already January 1, 2011 and C has not yet married X.
c. The obligation of D is extinguished on December 2, 2010 if X dies on the said date and C has not yet
married X.
d. The obligation is demandable if C marries X on January 1, 2011.
51. On July 1, 2010, D obliged himself to give C a specific car if C will not marry X on or before December
31, 2010. The condition of the obligation is a
a. positive condition
b. negative condition

c. divisible condition
d. impossible condition
52.
53. D owes C P5,000.00. T, a third person and without any intention to be reimbursed by D, paid the debt
without the consent of D. C accepted the payment.
a. The payment did not extinguish the debt of D to C because it was made without the consent of D.
b. The payment did not extinguish the debt because it was not made by D himself.
c. The payment is considered valid because it was accepted by the creditor.
d. The payment may be considered valid if T had the intention to be reimbursed.
54. A mode of extinguishing obligations up to their concurrent amount when two persons are principal
debtors and creditors of each other is called.
a. novation
b. payment
c. compensation
d. merger
55. D owes C P6,000.00 No date payment was stipulated by the parties.
a. C cannot require D to pay because there is no date for payment.
b. C can require D to pay at 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 fix a period for the payment.
56.
57. Which of the following is not considered a conditional obligation?
a. D to pay C P5,000.00 as soon as , has the means.
b. D to pay C P5,000.00 if C marries Y.
c. D to pay C P5,000.00 if C tops the CPA Examinations.
d. D to pay C if X dies of malaria.
58. The distinction between merger and acquisition is that in merger:
a. The two debts may be 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 creditor refer to only one person
59. The passage of time as a mode of acquiring and losing a right including the extinguishment of an
obligation is called:
a. remission
b. novation
c. prescription
d. merger
60. Legal compensation shall not be proper in three of the following cases. Which is the exception?
a. Commodatum.
b. Civil liability arising from a criminal offense.
c. Gratuitous support.
d. Bank deposit.

61. Cecilia, the owner of a sari-sari store, purchased several bags of Dulcita candy worth P5,000.00 from
Olga, an authorized dealer of the product. On due date, Cecilia, who sells the candies at P1.00 each,
tendered her payment to Olga consisting of 5,000 pieces of P1.00 coins.
a. Olga may refuse to accept the payment and demand that she be paid in bills.
b. Olga may not refuse to accept the payment because what Cecilia was offering as payment is
money circulated in the Philippines.
c. Cecilia may consign the payment in court if Olga refuses to accept it.
d. "he tender made by Cecilia was valid because the P1.00 coins came from her sales and she had plenty
of them.
62. Dominico and Domingo are jointly and severally liable to Crispino for P100,000. The obligation is due
on June 30, 2010. On June 25, 2010, Dominico paid the whole amount of the note to Crispino. If Domingo
reimburses Dominico on July 15, 2010, Dominico is entitled to receive from Domingo:
a. P50,000 plus interest from June 25 to July 15, 2010
b. P50,000 plus interest from June 25 to June 30, 2010
c. P50,000 plus interest from June 30 to July 15, 2010
d. P50,000 with no interest because Dominico paid the note before due date
63. One of the following does not apply to payment by cession. Which is it?
a. Ownership of the debtors properties is transferred to the creditor
b. The debtor must be insolvent
c. It affects all the properties of the debtor except those exempt from execution
d. There are several creditors
64. Which of the following does not apply to payment by cession. Which is it?
a. Ownership of the debtors properties is transferred to the creditor.
b. The debtor must be insolvent.
c. It affects all the properties of the debtor except those exempt from execution.
d. There are several creditors.
65. A, B and C are solidarily liable to X for P30,000. A pays X the whole amount due. C, however, is
insolvent.
a. A alone will bear the share of C who is insolvent since he(A) made the payment
b. A can collect from B P10,000
c. A can collect from B P15,000
d. A can demand a refund of P10,000 from X pertaining to Cs share since C is insolvent
66. Anna Almeda, Belinda Bersola, and Claudia Cabrera executed the following promissory note:
I promise to pay Dolores Dominguez or order the sum of P30,000.00 on June 30, 2010.
(Sgd.) Anna Almeda
(Sgd.) Belinda Bersola
(Sgd.) Claudia Cabrera
On June 10, 2010, Dolores Dominguez can collect from Anna Almeda:
a. P10,000.00
b. P30,000.00
c. P20,000.00
d. Nothing, because the note is void since it says I promise but was signed by three persons.
67.

68. An obligation where various prestations are due but the performance of all of them is required in order to
extinguish the obligation is known as:
a. alternative obligation.
b. facultative obligation.
c. conjunctive obligation.
d. simple obligation.
69.
70. D is indebted to C for P20,000.00 which is due on June 10. C owes D P15,000.00 which is due on June
5. On June 8, C assigned his credit rights to T. D gave his consent to the assignment but did not reserve his
right to the compensation. On June 10, how much may T collect from D?
a. P20,000.00
b. P15,000.00
c. P5,000.00
d. Nothing.
71.
72.
73. The estate of X who died recently, shows, among other document/contract, the following:
I. A certificate from Harvard University granting a scholarship to X. X was subjected to exhaustive
examination and interviews before he was granted the scholarship. He was supposed to start studying at
Harvard in 3 months time
II. Articles of partnership of XYZ enterprise showing X as a general partner.
III. A stock certificate of DEF Corp showing X as the owner of P5,000 shares of stock.
IV. A promissory note amounting to P100,000 executed by M in favor of X. The note is due after90 days
Which of the rights of X arising from the said documentation/contracts will be transmitted to the heirs of X?
a. I and II
b. II and III
c. III and IV
d. I and IV
74. The following statements pertain to either payment by cession or dacion en pago.
I. The debtor is insolvent
II. Ownership of the thing/s is transferred to the creditor/s.
III. Plurality of creditors is required.
IV. Obligations are totally extinguished as a rule.
a. Statements I and IV pertain to payment by cession.
b. Statements I and III pertain to dacion en pago.
c. Statements II and IV pertain to dacion en pago.
d. Statements III and IV pertain to payment by cession.
75. The return of what has been paid by mistake is known as:
a. solutio indebiti
b.negotiorum gestio
c. quasi-delict
d. natural obligation