BUSINESS LAW TAXATION REVIEWER a. Obligee b. Obligor c.

Active Subject
d. Creditor
D 1. This source of obligations which is a
D 9. Synonymous to obligor
rule of
1. Creditor 2. Active Subject
conduct, just and obligatory,
3. Debtor 4. Passive Subject
promulgated by
a. 1 and 2 b. 1 and 4 c. 2 and 3
legitimate authorities for common good,
d. 3 and 4
benefit and
observance. A 10. The object or subject matter of the
a. contract b. Quasi-contracts c. obligation
Delicts d. Law a. prestation b.
Vinculum
A 2. A juridical necessity to give, to do or not
c. Active subject d. Passive
to do.
Subject
a. Civil Obligations b. Natural
Obligation
D 11. The efficient cause or juridical tie why
c. Moral Obligation D. Social
the
Obligation
obligation exists.
A 3. They give right of action to compel their a. Active Subject b. Passive
Subject
performance. c. Prestation d. Viculum
a. Civil Obligation b. moral Obligation
B 12. The duty not to recover what has
voluntarily been paid although payment was
c. Natural Obligation d. Social
no longer required
Obligations
a. civil Obligation b. Natural
A 4. The oblige has a right to enforce the Obligation
obligation c. moral Obligation d. juridical
against the obligor in a court of law. Obligation
a. Civil Obligation b. moral Obligations
A 13. The following are sources of
C. Natural Obligations D. Social
obligations derived from law, except
Obligations
a. Contracts b. Quasi- Contract
c. Delicts d. Quasi delicts
C. 5. This is based on equity and justice.
a. Civil Obligations b. Moral B 14. Cannot be enforced by court action
Obligations and depend exclusively upon the good
c. Natural Obligations d. Social conscience of the debtor
obligations a. Civil Obligation b. Natural
Obligation
B 6. The person is whose favor the
C. Moral obligation d. Social Obligation
obligation is
constituted D 15. A owes B P1,000 A, knowing that the
a. Obligor b. Obligee debt has prescribed nevertheless, still pays
c. Passive Subject d. debtor B. Can A recover what he voluntarily paid?
First answer: Yes, because B has no to
A 7. Synonymous to oblige
demand the payment effected by A
1. Creditor 2. Active Subject
Second answer: No, the payment
3. Debtor 4. Passive Subject
extinguished the natural obligation
a. 1 and 2 b. 1 and 4 c. 2 and 3
a. both answers are correct c. Only the
d. 1 and 4
first is correct
B 8. The person who has the duty of giving, b. both answers are wrong d. Only the
doing or second is correct
not doing.
A 16. The duty to pay taxes and to support
ones family are obligations arising from
a. Law b. Contracts c. Quasi Contracts
d. Delicts
B 17. The obligations of husband and wife to
render
annual help and support arises from a.
Contract
b. Law c. Quasi contract d. Quasi
Delict
B. 18. A supports B, a minor because Bs
father refuses to support B. The father is
obliged to reimburse A. the source of
obligation is a. Contract b. Quasi Contract
c. Delict d.
Quasi Delict
B 19. A juridical relation resulting from a
lawful, voluntary, and unilateral act and
which has for its purpose the payment of
indemnity to the end that no one shall be
unjustly enriched or benefited at the expense
of another A. Contract b. Quasi Contract
c. delict d. Quasi
delict
C 20. When a person voluntarily takes
charge of anothers abandoned business or
property without the owners authority where
reimbursement must be made for necessary
and useful expenses.
a. Quasi Contract b. Quasi delict
c. Negotiorum gestio d. Solutio Indebti
D 21. When something is received when
there is no right to demand it, and it was
unduly delivered thru mistake, the recipient
has the duty to return it
a. Quasi contract b. Quasi delict
c. Negotiorum gestio d. Solutio Indebti
D 22. A quasi contract is an implied contract
A defendant who is acquitted in a
criminal case is
no longer liable civilly
a. true, true b. true, false c. false, true d.
false, false
B 23. Tort or culpa aquiliana is
a. Quasi contract b. Quasi delict
c. Negotiorum gestio d. Solutio indebti
B 24. A fault or ast or omission of care which
causes damage to another, there being no
pre-existing contractual relations between
the parties
a. Quasi contract b. Quasi delict
c. Negotiorum gestio d. Solutio indebti
B 25. Omission of the diligence which is
required by the circumstances of person,
place and time
a. ignorance b. negligence c. impotence
d. Insanity
D 26. 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 the proper
diligence
a. Observing utmost care
c. Of a father of a good family
b. Observing extraordinary care
d. Observing ordinary diligence
A 27. Ordinary diligence is
a. Diligence of a good father of a family
c. Diligence required by law
b. extraordinary diligence
d. Diligence of a father of a good family
D 28. The creditor has a right to the fruits of
the thing
a. From the time the obligation to deliver
it arises
c. From the time there is meeting of the
minds
b. From the time the fruits have been
delivered
d. From the perfection of the contract
A 29. From the time the fruits have been
delivered, the creditor shall acquire a. Real
right b. personal Right
c. moral right d.
inchoate right
A 30. If A sells to B a fountain pen, the
giving by A to B of the fountain pen is
a. Actual tradition b. Constructive
delivery
c. Symbolical tradition d. Traditio longa-
manu
Items 31-35 A kind of constructive delivery a. Both answers are correct c. Only the
whereby: first is correct
b. Both answers are not correct
A 31. Thre is delivery when the keys of a
d. Only the second is correct
warehouse are given a. tradition simbolica
c. tradition brevi-manu D 39. The following are kinds of fruits of an
b. Traditio longa-manu d. Traditio obligation, except
brevi-manu a. natural b. industrial c. civil d.
penal
B 32. There is delivery by mere consent or
the pointing out of the best a. Traditio A 40. Spontaneous products of the soil and
simbolicqa the offspring and other products of animals
c. Traditio brevi manu b. Traditio longa- a. Natural b. Industrial c. Civil d.
manu Penal
d. Traditio constitutom pessessorium
B 41. Products of the soil through cultivation
C 33. A possessor of athing not as an owner, or intervention of human labor
becomes the possessor as owner a. Traditio a. Natural b. Industrial c. Civil d. Penal
simbolicqa c. Traditio brevi manu
C 42. Fruits arising out of contracts like
b. Traditio longa- manu d. Traditio
rental payments
constitutom pessessorium
a. natural b. industrial c. civil d.
D 34. A possessor of a thing as an owner penal
retains possession no longer as an owner,
B 43. When does the obligation to deliver
but income other
arise
capacity a. Traditio simbolicqa
Answer 1 If there is no term or
c. Traditio brevi manu b. Traditio longa-
condition, then from the perfection of the
manu
contract
d. Traditio constitutom pessessorium
Answer 2 If there is a term or
C 35. The opposite of brevi manu condition, then from the moment the term
a. Longa manu c. Constitution arrive or the condition happens
possessorium a.True, true b. true, false c. False, true
b. Simbolica d. Quasi d. false, false
tradition
C 44. A is obliged to give B, 10 kilos of sugar,
B 36. If a thing is capable of particular which of the following is not correct
designation a. B can demand that A obtain the
a. Gneric b. Specific sugar and
c. determine d. Indeterminable deliver it to him
b. B can just buy 10 kilos of sugar and
A 37. If a thing refers to a class to a genus
charge the
and cannot be pointed out with particularity
expenses to A
a. Gneric b. Specific
c. A can insist on just paying B
c. determine d. Indeterminable
damages of the
C 38. A wife was about to deliver a child. Her monetary value of the sugar
parents brought her to the hospital. Who d. B ,ay require another person to
should pay the expenses for medical deliver the sugar
attendance? and charge the expenses to A
Answer 1- The husband, because it his duty
D 45. When demand by the creditor shall be
to support his wife and support includes
necessary in order that delay may exist
medical attendance.
a. When time is of the essence of the
Answer 2- The parents, because they were
contract
the persons who brought the wife to the
b. When demand would be useless
hospital
 c. When the obligor has expressly ascertained
acknowledged a. Exemplary b. Liquidated c. Temperate
that he is in default d. moral
d. When the obligor requested for an
B 55. Damages predetermined beforehand
extension of time
a. Temperate b. Liquidated c. Actual
B 46. Debtors default in real obligation d. Moral
a. Mora accipiendi c. Mora solvendi
C 56. A obliged himself to deliver to B the
ex persona
following
b. mora solveudi ex-re d. Compensatio
1) 2007 Sing-it Yamaha Organ
morae
2) Malagona passenger jeepney with
C 47. Debtors default in real obligation engine No. 69
a. Mora accipiendi c. Mora solvendi and chasis No. 88
ex persona First statement In case A failed to deliver
b. mora solveudi ex-re d. Compensatio the 2007 yamaha Organ, the court may
morae compel A to deliver the 2007 Yamaha Organ
plus damages
A 48. Default on the part of the creditor
Second Statement In case A failed to
a. Mora accipiendi c. Mora solvendi
deliver the jeepney, the court may compel A
ex persona
to deliver the jeepney plus damages
b. mora solveudi ex-re d. Compensatio
a. True, true b. True, false c. False, true d.
morae
false, false
D 49. Default on the both part of the parties
A 57. I. If a person obliged to do something
a. Mora accipiendi c. Mora solvendi
fails to do it, the same shall be executed at
ex persona
his cost
b. mora solveudi ex-re d.
II. Those who in the performance of
Compensatio morae
their obligation are guilty of fraud,
C 50. A borrowed money from B payable on negligence, or delay and
Dec. 10, 2006. If A failed to pay on due date, those who in any manner contravene the
will A be in delay? tenor thereof, are liable for damages.
a. Yes, because there is stipulation as a. True, true b. True, false c. False, true d.
regards the due False, false
date
D 58. I. Responsibility arising from fraud is
b. Yes, if the obligation is in writing
demandable in all obligations. Any waiver of
c. No, because demand has not been made
an action for fraud is void.
by B
II. If the law or contract does not state
d. No, if A has the money to pay B
the diligence which is to be observed in the
A 51. Damaged awarded for mental and performance of
physical anguish an obligation, that which is expected of a
a. moral b. Exemplary c. nominal father of a good family shall be required
d. temperate a. true, true b. true, false c. False, true d.
False, false
C 52. Damages awarded to vindicate a right
a. Liquidated b. Actual c. Nominal B 59. I. The recipient of a later installment of
d. Exemplary a debt without reservation as to prior
installments shall
A 53. Damages awarded to set an example give rise to a rebuttable presumption that
a. Exemplary b. Liquidated c. such installments have been paid.
nominal d. moral II. If a taxpayer pays his income tax
C 54. When the exact amount of damages liability for the correct year, there is a
cannot be presumption that tax
 liability for the previous year has been paid.
a. true, true b. true, false c. False, true d.
False, false
D 60.With regard to the right as to the fruits
of the thing, which is not correct?
a. If the obligation is subject to a
suspensive condition, the obligation to
deliver arises from the moment the condition
happens.
b. If the obligation is subject to a
suspensive period, the obligation to deliver
arises upon the expiration of the term or
period.
c. If there is no condition or term for its
fulfillment, the obligation to deliver arises
from the perfection of the contract or
creation of the obligation.
d. If the obligation arises from a contract of
sale, the vendor has right to the fruits of the
thing from the time the obligation to deliver
arises.
A 61. A is obliged to deliver his only car to B
on November 20, 2007. If A does not deliver,
and on November 22, 2007, a typhoon
destroys the car
a. A is not liable because the obligation is
extinguished b. A is liable because he is
delay
c. A and B will divide the loss equally
d. As obligation is converted into a monetary
obligation
C 62. I. When what is to be delivered is a
determinate thing, the creditor may compel
the debtor to make the delivery and if the
debtor refuses, the creditor may ask that the
obligation be complied with at the expense
of the debtor.
II. The obligation to give a determinate
thing includes that of delivering all its
accession and
accessories, even though they may not have
been mentioned.
a. true, true b. True, false c. False, true d.
false, false
A 63. What is the basis of the liability of a
school when a student is stabbed inside the
campus by a stranger in the school? a.
Contracts b. Quasi- contracts
c. Delicts d. Quasi
delicts
D 64. The following expect one, are included
in civil liability. The exception is a.
restitution b. reparation
c. Indemnification
d. starvation
A 65. The thing itself shall be restored, as a
rule
a. restitution b. Reparation
c. Indemnification d. starvation
B 66. The court determines the amount of
damage taking into consideration the price
of the thing and its sentimental value to the
injured person
a. restitution b. Reparation
c. Indemnification d. starvation
C 67. The consequential damages suffered
by the injured person and those suffered by
his family or third person by reason of the
act. a. restitution b. Reparation
c. Indemnification
d. starvation
B 68. Action to Impugn or rescind acts or
contracts done by the debtor to defraud the
creditors
a. Accion reinvindicatoria b. Accion
Paulina
c. Accion Subrogatoria d. Accion Quanti
minoris
C 69. A borrower agreed, that in case of non-
payment of his debt, to render services as a
severant. Which of the following is not
correct?
a. If the services will be rendered in
satisfaction of
the debt, the stipulation is valid.
b. If the services will be for free, the
stipulation is
void for being contrary to law and
morals
c. If the services will not be gratuitous,
specific
performance of the service will be the
proper
remedy in case of non compliance.
d. Should there be a valid stipulation as
regards the
rendition of services, an action for
damages should
be brought in case of non- compliance.
C 70. A ordered B, a 10 year old boy to climb
a high and slippery mango tree with a
promise to give him part of the fruits B was
seriously injured when he fell while climbing
the tree. Is A liable?
A. First answer No, because no person
shall be responsible for fortuitous
events
B. Second Answer Yes, because A was
negligent in making the order without
taking due care to avoid a reasonable
foreseeable injury to
a. true, true b. true, false c. False, true d.
False, false
D 71. A pays for Bs transportation fare,
without Bs knowledge and later discovers
that B was entitled to half-fare. Which is not
correct?
a. A can recover the half- fare from D
c. A can recover from B and from
the carrier
b. A can recover the half-fare from the
carrier
d. A can recover half-fare from B only
D 72. A borrowed P100,000 from B. the loan
was secured by a mortgage of As land in
favor of B. Without the knowledge of A, C
paid B the sum of P100,000 for As debt. As a
result,
a. C may foreclose the mortgage on As
land if A
cannot pay
b. C cannot claim reimbursement from A in
as much as
the payment was made without the
knowledge of A
c. C can recover the amount from B in case
A refuses
to reimburse C
d. The obligation of A to B was
extinguished but A
should reimburse C the amount of
P100,000
because he was benefited by the
payment
A 73. When the debtor of a debtor is ordered
not to pay the latter so that preference
would be given to the latters creditor a.
garnishment b. interpleader
c. Injunction d.
Attachment
B 74. A obtained a loan from B bank. The
loan was embodied in several promissory
notes. As security the borrower executed a
chattel mortgage on his standing crops. Said
crops were however subsequently destroyed
by typhoon Rosing. Is A still liable for the
loan despite the destruction of the crops by a
fortuitous event?
1st answer Yes, the obligation of A was to
deliver a generic thingmoney
2nd answer No, the obligation was to deliver
determinate things the standing crops
a. true, true b.true, false c. False, true d.
False, False
C 75. A sold a half interest in his specific
car to B. It was agreed that the price to be
paid by B would be used in installing a new
engine on the car. Later, the car was
destroyed by a fortuitous event. Is Bs
obligation to pay the price extinguished?
1st answer Yes, there is no more use of
installing a new engine since the car has
already been destroyed by a fortuitous
event.
2nd answer No, B must still pay because his
obligation to pay is generic
a. true, true b. true, False c. False, true d.
false, false
B 76. I. A commits the crime of theft and is
asked to return the car to its owner B. If,
before the car is delivered to B it is
destroyed by a fortuitous event,
Is As liability extinguished? using above
statement, A had previously asked the owner
to accept the car, but the owner without any
justifiable reason refuses to accept the car,
and it is destroyed by a fortuitous events. Is
As liablilty extinguished?
a. yes, yes b. no, Yes c. yes, no
d. no , No
B 77. I. There is no delay in an obligation not
to do
something
II. Solutio indebti and negotiorum
gestio are
implied contracts
 a. true, true b. true, false c. False, true d. b. Only 1 is true d. Both 1 & 2
False, false are false
D 78. I. Consent of the parties is required in C 84. On June 24, 2007, A is obliged to give B
quasi- his specific car. There was no delivery until
contract June 30 when the garage of the car collapsed
II. The creditor acquires real right over due to heavy rain and strong winds of
the thing typhoon Pining, and the car was totally
from the time obligation to deliver destroyed. Is A still liable?
arises a.no, even if A was in default, he could plead
a. true, true b. true, false c. False, true d. impossibility of performance
False, false b Yes, because the contract is perfected
c. No, because there was no demand by B to
C 79. The creditor has a right to the fruits of
deliver the car
the thing
d. yes, the obligation to deliver the car is
from the time
changed to pay the equivalent value
a. the thing is delivered
because B is in legal delay
c. The obligation to deliver the thing arises
b. The fruits are delivered d. The sale is A 85. This obligation is demandable at once
perfected when it
a. Has a resolutory condition b. Has a
D 80. The buyer has the right to the fruits of
suspensive condition c. Is with a term ex-
the thing
die d. Has a period
from the time
a. the thing is delivered D 86. When the debtor binds himself to pay
c. The obligation to deliver the thing when his means permit him to do so, the
arises obligation shall be deemed to be with a
b. the fruits are delivered d. The sale is a. resolutory period b. Suspensive
perfected condition
c. Potestative condition d. period
81. Which is not considered as quasi
contract? A 87. A promised to give B his Volvo car if B
a. Solution indebiti b. Negotiorum passes the CPA board exams. Pending the
gestio results of the exams the car is destroyed by
c. When the third person with the knowledge a fortuitous event without any fault on the
of the debtor , pays the debt part of A. As a result
d. reimbursement due the person who saved a. the obligation of A is extinguished
property during fire or typhoon without the b. the obligation of A is converted into
knowledge of the owner monetary obligation
c. The obligation of A will be equitably
B 82. No longer enforceable by court action
reduced
but is binding on the party who oblige with it
d. A will have to give A another car of
in conscience is a. Civil obligation
equivalent value
c. moral Obligation
b. Natural Obligation d. Conditional A 88. A period with a suspensive effect
obligation a. I will support you beginning January 1 of
next year c. I will support you if A dies of
A 83. If A pays a debt that has prescribed:
TB
1. Not knowing it has prescribed, A can
b. I will support you until January 1 of next
recover the ground of undue payment
year
2. Knowing it has prescribed, A cannot
d. I will support you if A marries B
recover for this would be a case of natural
obligation B 89. A period with a resolutory effect
a. both 1 & 2 are true c. Only 2 is a. I will support you beginning January 1
true of next year
 c. I will support you if A dies
b. I will support you until A dies
d. I will support you if A dies of TB
A 93. Whenever in an obligation a period is
designated, it is presumed to have been
established for the benefit a. of both the
creditor and debtor c. of the debtor only
b. Of the creditor only d. Of
third person
D 94. This is a valid obligation
a. A will give B P100,000 if B will kill C
b. A will give B P1,000,000 if B will
agree to be
mistress of A
c. A will give B P10,000 if B can make C
rise from the dead
d. A will give B P1,000 if b will not pose nude
in a
painting session
A 95. Where two or more prestations have
been agreed upon but only one is due, the
obligation is
a. Alternative b. facultative c. Conjoin d.
Solidary
A 96. Using the preceding number, the right
of choice, belongs a. To the debtor b.
To the creditor
c. to both debtor and creditor d. To
third person
B 98. I. Using the preceeding number, if
objects nos. 1 and 2 were destroyed by a
fortuitous event and later object No. 3 is
destroyed by As fault. A would still be liable
II. Using the preceding number, if
objects nos 1 and 2 were destroyed by As
fault and later object no. 3 is lost by a
fortuitous event. A would still be liable
a. true, true b. true, false c. False, true d.
false, false
D 99. A is obliged to give B either objects No.
1 & No. 2 or no. 3 at Bs option. Before B
communicated his choice to A, object No. 1
had been destroyed, thru As fault and object
No. 2 had been destroyed by a fortuitous
event. B may
a. Demand object No. 3 only as it is
still available
b. demand the price of object No. 1
only plus
damages because it was destroyed
by As fault
c. demand the value of object No. 2 as
the right of
choice belongs to B
d. demand either object No. 3 or the
price of
object No 1 plus damages
D 100. Any of the debtors is bound to render
compliance of the entire obligation
a. alternative b. facultative c. joint d.
Solidary
D 101. In a joint obligation, joint means any
of the following, except a. pro-rata
b. proportionate
c. mancomunada simple d. Individually &
collectively
B 102. In facultative obligations, if
substitution has been made, which of the
following is false?
a. the obligation is extinguished
b. the loss of the original prestation is
immaterial
c. The obligation is converted into a simple
obligation
d. The obligation ceases to be facultative
A 103. Using the preceding number, and the
substitute is lost by a fortuitous event, which
is true?
a. the obligation is extinguished
b. the debtor is liable for damages
c. the original prestation must be given
d. The debtor must give another object which
is equally satisfactory
B 104. Using the preceding number, but the
substitute is lost due to debtors fault, which
is true?
a. the obligation is extinguished
b. The debtor is liable for damages
c. the original prestation must be given
d. The debtor must give another object which
is equally satisfactory
D 105. Instances where the law imposes
solidary liability, except
a. Obligations arising from tort
b. Obligations of bailees in commodatum
c. liability of principals, accomplices and
accessories of a clony b. P250 from A or P250 from B
d. liability of partners arising out of a d. P500 from A and P500 from B
contract
D 113. This is synonymous to joint obligation
D 106. This will result to a solidary liability a. joint & several b. In solidum c.
a. vitiated consent on the part of one of the Individually & collectively d. Mancomunada
debtors Simple
b. insolvency of one of the debtors
D 114. This is synonymous to solidary
c. default on the part of one of the debtors
obligation
d. quasi delict commited by one of the
a. Pro-rata b. Mancomunada c.
partners acting in the ordinary course of
Proportionate d. juntos o separadamente
business
A 115. A, b and C are joint debtors of D for
B 107. Where only one prestation has been
P3,000. If A is insolvent, how much should B
agreed upon, but the obligor may render
pay D?
another in substitution. The obligation is
a. P1,000 b. P1,500 c.
a. Alternative b. facultative c.
P2,000 d. P3,000
Conjoint D. Solidary
C 116. In 2007, A, B and C bound themselves
C 108. Where two or more prestations have
in solidum to give D P9,000 subject to the
been agreed upon, and all of them must be
following conditions: A will pay in 2007, b, if
performed, the obligation is
D passes the 2008 CPA Board exam and D
a. Alternative b. facultative c.
will pay in 2009 in 2007, how much can D
Conjoint D. Solidary
demand from c?
A 109. A and b are solidary debtors of C and a. P9,000 b. P6,000 b. P3,000
D, solidary creditors, to the amount of d. 5,000
P1,000. C can demand
A 117. A, B and C are solidary debtors of D
a. P1,000 from A or P1,000 from B
for P3,000. D remitted cs share. A therefore
c. P500 from A or P500 from B
paid later P2,000. A can recover
b. P1,000 from A and P1,000 from B
reimbursement from B in the amount of
d. P500 from A and P500 from B
a. P1,000 b. P1,500 c. P500
B 110. A and B solidary debtors of C and D, d. P0
joint creditors, to the amount of P1,000 C
C 118. Using the preceding number, if B is
can demand
insolvent, A can recover from C the amount
a. P1,000 from A or P1,000 from B
of
c. P500 from A and P500 from B
a. P1,000 b. P1,500 c. P500
b. P500 from A or P500 from B
d. P0
d. P250 from A and P250 from B
D 119. A, b and C are solidary debtors of D in
C 111. A nad B are joint debtors of C and D,
the amount of P1,000. D remitted the entire
solidary creditors to the amount of P1,000. C
obligation when A offered to pay. A can
can demand
demand reimbursement from B in the
a. P1,000 from A or P1,000 from B
amount of
c. P500 from A and P500 from B
a. P1,000 b. P500 c. P333 d. P0
b. P500 from A or P500 500 from B
d. P250 from A and P250 from B B 120. A, B and C are solidary debtors of D in
the amount of p3,000 but A was
C 112. A nad B are joint debtors of C and D,
incapacitated to give his consent as he was
joint creditors, to the amount of P1,000. C
a minor. If D sues B, how much will B be
can demand
liable for?
a. P500 from A or P500 from B
a. P3,000 b. P2,000 c. P1,000
c. P250 from A and P250 from B
d. P0
A 122. A is indebted to solidary creditors B,
C and D for P90,000. Without the knowledge
of B and C, D remitted the obligation of A, as
a result,
a. The obligation of A to pay P90,000 is
extinguished
b. The obligation is not extinguished because
there is no consent from b and C
c. the obligation is extinguished only up to
P30,000
d. the obligations is extinguished up to
P60,000
D 124. A is obliged to give B her college ring.
If she fails to do so, she must give P10,000.
This is
a. Alternative obligation c. facultative
Obligation
b. Conjoint Obligation d. Obligation with a
penal clause
D 125. Where the penalty takes the place of
indemnity for the damages and for the
payment of interest
a. Where there is stipulation to the effect
that damages or interest may still be
recovered, despite the presence of the
penalty clause
b. when the debtor refuses to pay the
penalty imposed in the obligation
c. When the debtor is guilty of fraud or
dolo in the fulfillment of the obligation
d. Where there is breach of the
obligations
B 126. This is an obligation with a resolutory
condition
a. Ill give you P10,000 if you pass the 2006
CPA board examination
b. Ill give you may car now, but should you
fail in any of your subjects, your ownership
will case and it will be mine agin
c. Ill give you P10,000 on December 31,
2006
d. Ill give you P10,000 if A dies of TB
C 127. I. If the condition is potestative on the
part of the debtor, the obligation is void
II. If the condition, is potestative on
the part of the creditor, the obligation is valid
a. true, true b. True, False C. false, true D.
False, false
C 128. A owns a house rented by B. A sold
the house to C where C agreed to pay the
balance of the purchase price as soon as B
leaves the premises. It was farther agreed
that c will take care of seeing to it that B
vacates the house. Which is correct
a. The contract is void because it is
potestative on the part of C
b. the contract is void because the
consent of B was not obtained
c. the contract is valid because the
condition is mixed
d. the contract is valid if B is willing to
vacate the premises
A 129. I. the condition that some event
happens at a determinate time shall
extinguish the obligation as soon as the time
expires or it has become indubitable that the
event will not take place
II. The condition that some event will not
happen at a determinable time shall render
the obligation effective from the moment the
time indicated has elapsed, or it has become
evident the event cannot occur
a. true, true b. true, false C. false, true d.
false, false
D 130. I. A father promised to give his son a
car if the son will marry B this year. If by the
end of the year, B Is already dead or the son
has not married B, the obligation to give is
effective and demandable
II. A father promised to give his daughter a
car if the daughter will not marry her
boyfriend earlier than December 31, 2006. If
by December 31, 2006 the daughter has not
yet married her boyfriend, or if prior thereto,
her boyfriend has died, the obligation is
extinguished.
a. true, true b. true, false c. false, true d.
False, true
A 131. I. obligations with a resolutory period
take effect at once, but terminate upon
arrival of the day certain.
II. Obligations with a resolutory condition
take effect at once, but terminate upon
happening of the condition.
a. true, true b. true, false c. false, true d.
False, true
B 132. A borrowed money from B and
pledged her ring as security. It was agreed
that A was to pay the money loaned with
interest at the end of one year. Before the
expiration of the one year period
a. A may compel B to accept her payment
b. A may be allowed to pay B, if B consents
c. A may compel B to accept her payment
because the period is deemed for the benefit
of A
d. B may refuse As payment as the period is
demand for the benefit of B
C 133. 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 guaranty or security or security for the
debt.
b. When he does not furnish to the creditor
the guaranties or securities which he has
promised
c. When through fortuitous events or by his
own acts the guaranties or securities have
been impaired, unless he immediately gives
new ones equally satisfactory
d. When the debtor violates any undertaking
in consideration of which the creditor agreed
to the period
A 136. The creditor is entitled to recover
damages and interest in addition to penalty
stipulated
a. When the debtor refused to pay the
penalty
b. When the debtor is guilty of fraud in
the fulfillment of the obligation
a. true, true b. true, false c. false, true d.
False, true
B 137. 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
C 138. A judicial process by virtue of which a
person is generally ordered to refrain from
doing something
a. Garnishment b. interpleader
c. Injunction d. Attachment
A 139. Where a property is alienated to the
creditor is satisfaction of a debt in money
a. Dation in payment b. payment by cession
c. Application of payment d. Consignation
B 140. Where a debtor transfers all his
properties not subject to execution favor of
his creditors so that the latter may sell them
and thus apply the proceeds to their credits.
a. dation in payment b. Cession
c. Application of payment d.
Consignation
B 140. The act of offering the creditor what is
due him together with a demand that the
creditor accept the same a. Application of
payment b. tender of payment
c. Datio in Solutum d.
Cession
B 142. The act of depositing the thing due
with the court or judicial authorities
whenever the creditor cannot accept or
refuses to accept payment
a. Tender of payment b. Consignation
c. Application of payment d.datio in
Solutum
A 143. The meeting in one person of the
qualities of creditor and debtor with respect
to the same obligation a. Confusion b.
Compensation
c. Novation d. Condonation
B 144. When two persons in their own right
are creditors and debtors of each other
a. Confusion b. Compensation
c. Novation d. Condonation
C 145. This is not necessary in order that
compensation may prosper
a. that the two debts are both due
b. That the two debts be liquidated and
demandable
c. That there be a retention or controversy
commenced by third persons and
communicated in due time to the debtor
d. both debts consists in a sum of money, or
if the things due are consumable, they be of
the same kind and also of the same quality if
the later has been stated.
D 146. Compensation cannot take place
except,
a. When one debt arises from the obligations
of a depositary
b. When one debt arises from the obligations
of a bailee in commodatum
c.When one debt arises because of a claim
for support due to gratuitous title
d. When one debt arises from blank deposit
C 147. The substitutions or change of an
obligation by another which extinguishes or
modifies the first
a. Confusion b. Compensation
c. Novation d. Consignation
A 148. Novation which changes the object or
the principal condition of the obligation
a. Real b. personal c. mixed d. Partial
B 149. Novation which changes the parties to
the obligation
a. Real b. personal c. mixed d. Partial
B 150. Expromission, delegacion or
subrogating a third person in the right of the
creditor
a. Real b. personal c. mixed d. Partial
C 151. Novation which changes the object
and parties of the obligation
a. Real b. personal c. mixed d. Partial
B 152. Substitution of debtor where the
initiative comes from a third person a.
Delegacion b. Expromission
c. Subrogating
d. Novation
A 153. Substitution of debtor where the
initiative comes from the debtor a.
Delegacion b. Expromission
c. Subrogating d.
Novation
C 154. The transfer of a third person of all
the rights appertaining to the creditor a.
Delegacion
b. Expromission c. Subrogating d.
Novation
A 155. Legal subrogagtion is presumed in the
following. Which is not correct?
a. When a third person, not interested in the
obligation, pays will the approval of the
creditor
b. When a creditor pays another creditor who
is preferred, even without the debtors
knowledge
c. When a third person, not interested in the
obligation, pays with the express or tacit
approval of the debtor
d. When , even without the knowledge of the
debto, a person interested in the fulfillment
of the obligation pays, without prejudice to
the effects of confusion as to the latters
share
A 156. I. Proof of actual damages suffered by
the creditor is not necessary in order that the
penalty previously agreed upon may be
demanded
II. Proof of actual damages suffered by the
creditor is not necessary in an obligation with
a penal clause.
a. true, true b. true, false c. false, true d.
False, true
C 157. I. Whoever pays for another may
demand from the debtor what he has paid,
except that if he paid without the knowledge
or against the will of the debtor he cannot
recover anything
II. The debtor of a thing cannot compel the
creditor to receive a different one, although
the latter may be of the same value as or
more valuable than that which is due
a. true, true b. true, false c. false, true d.
False, true
C 158. A owes B two debts, both of which are
already due. The first debt is secured by a
mortgage the second is not. A tells B that
payment he is now making should be applied
to the second debt instead of the first, which
is correct?
a. B may refuse such application on the
ground that the first debt is more
burdensome to the debtor
b. B may refuse such application because the
payment shall be applied proportionately
c. B cannot refuse the application because
the preference of the debtor must be
followed
D 160. A owes B P10,000 with C as a
guarantor. A paid P4,000 leaving P6,000
unpaid balance. D without the knowledge of
A, paid B the sum of P10,000. As a result of
this payment
a. The obligation is not extinguished as the
payment is without the consent of A
b. the obligation is extinguished but D cannot
recover from A instead he should go after the
guarantor
c. The obligation is extinguished but D can
recover only P6,000 from A and if A cannot
pay, D should demand payment from C
D. The obligation is extinguished but D
cannot recover P10,000 but only P6,000 from
A and if A cannot pay, he cannot go after C.
A 161. A owes B P10,000 C in behalf of A,
pays B P10,000 against the consent of A
although C has previously told A that he
did not intend to be reimbursed.
Nevertheless, B accepts the payment by C in
behalf of A.
1st statement As obligation towards B is
extinguished
2nd statement C may still recover from A
because A did not consent to what the law
deems a donation on the part of C in favor of
A obligation and will be liable also for damages
a. true, true b. true, false c. false, true d.
False, true
C 162. A owes B two debts, both of which are
already due. The first debt is secured by a
mortgage while the second is not. A tells B
that the payment he is now making should
be applied to the second debt, instead of the
first.
1st statement B may refuse to accept such
application on the fround that the first debt
is more burdensome to the debtor
2nd statement B cannot refuse such
application because the preference of the
debtor must be followed.
a. true, true b. true, false c. false, true d.
False, true
B 163. I. A owes B P10,000, guaranteed by C.
B assigns his credit to X. X assigns the credit
to Y. Y assigns the credit to A. As obligation
is extinguished and C is released from his
obligations as guarantor.
II. A owes B P10,000 guaranteed by C. B
assigns his credit to X. X assigns his credit to
Y. y assigns his credit to C, the guarantor. As
obligation is extinguished and C is released
from his obligation as guarantor.
a. true, true b. true, false c. false, true d.
False, true
B 164. A has two creditors, b and C. B is a
mortgage creditor for P20,000 and C is an
ordinary creditor for P10,000. C paid As debt
of P20,000 to B
1st statement If Cs payment is with As
knowledge, C will be subrogated in the rights
of B
2nd statement if Cs payment is without As
knowledge, C will not be subrogated in the
rights of B
a. true, true b. true, false c.
false, true d. False, true
D 165. A nad b are jointly liable to deliver a
particular car valued at p200,00 to C on July
1, 2007. Which is correct?
a. the prestation is indivisible making the
liability of A and B solidary
b. if on July 1, 2007, A is willing to deliver the
car but B is not, C may enforce the obligation
against A
c. A is liable for a proportionate part of the
if b is not ready to comply with his obligation,
even if a is willing to deliver the car
d. the liability of A and B is joint and that
damages may be assessed only against the
debtor who violated the obligation
D 166. A executes in favor of B a promissory
note for P1,000,000 payable after two years,
secured by a mortgage on a building valued
at P2,000,000. One year after the execution
of the note, the mortgaged building was
totally burned. Can B demand from A the
payment of the value of the note?
a. yes, if A is willing to pay B
B. No, If A refuses to pay B
c. yes, even if A gives another security which
is equally satisfactory
d. yes, unless A gives another security which
is equally satisfactory
C 168. A obliged himself to pay B P10,000
as soon as possible. Three months later, B
demanded payment from A but the latter
refuses to pay. B can
a. File an action in court compelling A to pay
the obligation
b. Consider the obligation void because the
phrase as soon as possible is indeterminable
c. Go to court so that the court will fix the
date of payment
d. Ask for damages because three months is
considered too long for as soon as possible
A 169. A owes B P10,000 payable on June 30,
2007 and as a security. A pledged his ring to
B. Necessarily the ring was delivered to B.
On due date, the ring is found in the
possession of A when it should be in the
possession of B. As a result, one of the
following is not correct.
a. As obligation to b is extinguished
b. As obligation to B is extinguished
c. The contract of pledge is extinguished
d. The contract of pledge is extinguished but
not the principal obligation
B 171. I. when the fulfillment of the
suspensive or resolutory condition depends
upon the sole will of the debtor, the
conditional obligation shall be void.
II. If the debt produces interest, payment
of the interest shall not be deemed to have
been made until the principal have been
covered or paid.
a. true, true b. true, false c.
false, true d. False, true
A 172. I. Condonation or remission is
generally gratuitous
II. Proof of actual damages suffered
by the creditor is not necessary in order that
the penalty in an obligation with a penal
clause may be demanded
a. true, true b. true, false c.
false, true d. False, true
C 173. I. in delegacion, the insolvency of the
new debtor will not receive the original
debtors obligation
II. In expromission the insolvency of
the new debt may at times revive the
original debtors obligation
a. true, true b. true, false
c. false, true d. False, true
A 174. I. A Solidary creditor cannot assign
his rights without the consent of the other
creditors.
II. Payment of the debtors obligation
may be made by a third person even without
the knowledge consent of the debtor
a. true, true b. true, false
c. false, true d. False, true
B 175. I. Solidary may exist although the
debtors and the creditors may not be bound
in the same manner and the same periods
and conditions
II. A solidary debtor is always entitled to
reimbursement from his co-debtors if he
pays for the obligations
a. true, true b. true, false c.
false, true d. False, true
A 176. I. payment made in good faith to any
person in possession of the credit shall
extinguish the debtors obligation
II. When the debtor is guilty of fraud in the
fulfillment of an obligation, a creditor can
demand payment of damages and interest in
addition to the penalty.
a. true, true b. true, false c. false, true d.
False, true
D 177. A obliges himself to give B a specific
car on Jan. 7 ,2007. On Jan 7, 2007, C burned
the car which A promised to deliver to B,
which is correct?
a. As obligation to B is converted to
monetary obligation
b. A should file an action against C for the
value of the car plus damages
c. B can file an action against A for the value
of the car plus damages
d. B can file an action against C for the value
of the car plus damages
C 178. A owes B P10,000 due on Jan. 7 and
guaranteed by C. B owes A P8,000 due on
Jan. 7. On the due date, A is insolvent. How
much is Cs liability?
a. P10,000 b. P8,000 c. P2,000 d. P0
D 180. In tender of payment and
consignation, if after consignation is made,
the creditor allows the debtor to withdraw
the thing deposited in court, which of the
following statements is not correct?
a. Guarantors are released from the
obligation unless they consented
b. Sureties are released from the
obligation unless they consented
c. The obligation is extinguished
D 181. A owes B P100,000 payable on or
before Jan. 20 ,2007 while B owes A
P100,000 payable on or before Jan. 30, 2007
B can set up compensation on Jan. 20, 2007
and this is called a. Legal b. Partial
 c. judicial or set off d.
Facultative
D 182. Which of the following is an obligation
with a period for the benefit of the debtor?
a. An obligation payable little by little
b. An obligation payable when the debtors
means permit him to do so
c. An obligation payable within 10 months on
demand
d. An obligation payable on or before Dec.
31, 2007
B 183. Proof of pecuniary loss is necessary
for the award of a. moral damages
b. Actual damages
c. Exemplary damages d.
temperate damages
A 184. The indemnity which the law gives to
the injured party for the breach of a contract
is
a. damages b. damage c. Injury
d. Loss
B 185. The loss suffered by one person on his
property is a. Damages b. damage
c. injury
A 186. Not a requisite of cession in payment
a. One debtor and one creditor c. more
than one debt
b. Complete or partial insolvency d.
Abandonment of all debtors property not
exempt from execution
C 187. If the obligation is payable in foreign
currency, Which is correct?
a. The obligation is void
b. The obligation is valid, but the stipulation
is void
c. The creditor can compel the debtor to pay
in foreign currency as per agreement
d. the stipulation and the obligation are void
D 188. Who is liable for the loss of the
subject matter by fortuitous event?
a. creditor b. Debtor c. Both of them d.
None of them
A 189. Ill give you my car one year after X
dies. The obligation is a. Valid, because
death is sure to come c. Void, the time
when death will occur is not certain
b. Valid. But the condition will be
disregarded
d. void, killing a person is contrary to law.
C 190. Whoever pays for another without the
knowledge or against the will of the debtor
a. May demand from the debtor what he has
paid
b. may not recover anything from the debtor
c. May recover only insofar as the payment
has been beneficial to the debtor
d. May recover from the debtor what he has
paid plus damages
D 191. A owes B P10,000. Later A paid B
P7,000 leaving a balance of P3,000. C, a
suitor of A and intending to surprise A, paid B
the sum of P10,000 thinking that A still owed
B that amount. C did this
a. C Can recover P10,000 from A
c. C can recover P10,000 from B
b. C cannot recover anything from A
d. C can recover P3,000 from A
C 192. The act of putting somebody onto the
shoes of the creditor enabling him to
exercise all the rights and actions that could
have been exercised by the latter
a. Agency b. Partnership c. Subrogation
d. Novation
C 193. A borrowed P10,000 from B. the loan
was secured by a mortgage of As land in
favor of B. Without the knowledge of A, C
paid the sum of P10,000 for As debt. A
benefited to the amount of P10,000. Which is
not correct?
a. C can recover the whole amount of
P10,000 from a
b. if A cannot pay , C cannot foreclose the
mortgage inasmuch as C paid without the
knowledge of A
c. C may either demand recovery of P10,000
from A or to foreclose the mortgage
d. If C did not pay, the original creditor B has
the right to foreclose in case of non-payment
by A.
A 194. A has in his possession some
merchandise to be delivered to the person
who presents the proper receipt . B and C
each armed with a receipt, ask A to turn over
the property to one of them. An examination
of the receipts reveals that they are exactly
of the same kind. A does not know to him he a. P1,000 b P800 c. P550
should deliver the property. So he files an d. P400
action in court by means of which B and C
C 201. A owes B P10,000. When the debt
will be able to settle their conflicting rights.
matured B told A that she need not pay the
This is
debt since B condoning it. A in turn
a. An interpleader b. An injunction
expressed her gratitude. The debt has been
c. A garnishment d. A consignation
extinguished by
D 195. When is there no loss of the thing a. Novation c. Compensation c.
due? Remission d. Confusion
a. When the object perishes
C 202. Using the preceding number, If a
b. When it goes out of commerce
rejected the offer of B, and B did not collect
c. When it is in possession of another
within the statute of limitation (period to
person
collect) the debt may be said to have been
d. When it disappeared in such a way
extinguished by
that its existence is unknown or it cannot be
a. Remission b. Compensation c.
recovered
Prescription d. Annulment
D 196. The expenses of consignation when
C 203. A makes a check payable to bearer
properly made, shall be changed against the
and gives the check to C, who gives it to D
a, debtor b. creditor c. third person
who finally give it to A. The obligation of A is
d. Debtor and creditor
extinguished by
B 197. The designation of the debt to which a. Merger b. Compensation c. Novation
should be applied a payment made by a d. Prescription
debtor who owes several debts in favor of
D 204. A owes b P10,000 C, a friend of A
the same creditor
approaches B and tell him I will pay you
a. Dation in payment c. tender of
what A owes you. From now on consider me
payment
your debtor , not A. A is to be excussed. If B
b. Application of payment d. Payment by
agrees, there is
cession
a. novation b. Subrogation c. Delegacion
D 199. There is compensation d. Expromission
a. A in his capacity as guardian of B is
C 205. The debtor shall lose every right to
a creditor of C. C in turn is a creditor of A
make use of the period, except
who owes him a personal debt
a. When after the obligation has been
b. A, debtor of two partners is a creditor of
contracted, he becomes insolvent, unless he
the partnership
gives a guaranty or security for the debt
c. A owes B P10,000 payable May 31, 2007.
b. When he does not furnish to the creditor
B owes A P10,000 payable on June 30, 2007.
the guaranties or securities which he has
If today is May 31, 2007
promised
d. A owes B a fountain pen and B owes A
c. When through a fortuitous event or by his
also a fountain pen. Both debts are due
own acts the guaranties or securities have
C 200. A owes B P1,000. B in turn owes A been impaired after their establishment,
P200. Both debts are already due. Later B unless he immediately gives new ones
assigns the P1,000 credit to C, without the equally satisfactory
knowledge of A. The assignment was made
D 206. The substitution or change of an
on June 3. On June 10, a P25,000 debt of B in
obligation by another, which extinguishes or
favor of A matured. A learned of the
modified the first either changing its object
assignment on July 1. On July 10, a P150 debt
or principal condition or substituting another
of in favor of A matured. Later C asks A to
in the place of the debtor, or subrogating a
pay his debt. How much can C successfully
third person in the rights of the creditor
collect from A?
a. Compensation b. merger c. Prescription
d. novation
B 207. A method of novation caused by the
replacement of the old debtor by a new
debtor, where the old debtor has proposed to
the creditor and which replacement has been
agreed to by said creditor and by said new
debtor is a. Novation b. Delegacion
c. Expromission d.
Quantum meruit
D 209. A and B entered into a contract
whereby A was to give B P200,000. Later
they novated the contract by stipulating that
instead of cash A would give a particular car.
Subsquently the car was destroyed by a
fortuitous event. Which is correct?
a. novation is not allowed because the things
due are not of the same kind
b. A is liable to pay P200,000, the amount of
the old obligation
c. the original obligation is extinguished but
not the obligation to deliver the car
d. The original obligation and the obligation
to deliver the car are both extinguished.
D 210. A, B and C executed a promissory
note worded as follows: we promise to pay
to X, y and Z the sum of P90,000. Sgd. A, B
and C, which is correct?
a. A is obliged to pay to X, Y and Z P90,000
p240,000. On due date, D demanded
delivery but the debtors failed to deliver. The
next day, while A was still in possession of
the car, it was lost due to a fortuitous event.
The right of D is
a. To proceed against any of the debtors for
the value of the car plus damages
b. To proceed against A only because the car
was lost while in his possession
c. None, because the obligation is
extinguished due to a fortuitous event
d. To proceed against B and C because they
were not in possession of the car when it was
lost due to a fortuitous event
A 214. A owes B P10,000. With the consent
of A and B, C pays B P5,000. Now, b and C
are the creditors of A to the amount of
P5,000 each. Suppose, A has only P5,000.
Which is correct? a. b should be preferred
c. B and C should be paid pro rata
b. C should be preferred
d. A may choose whom to pay

c. A is obliged to pay to Y P30,000

b. A is obliged to pay to X P60,000

d. A is obliged to pay to Z P10,000S

D 211. A obliged himself to give B a specific
car on June 12, 2007 stipulating that A is
liable even if the thing is lost due to
fortuitous event and without the need of a
demand. On due date, the car got lost due to
fortuitous event. Which is correct?
a. Obligation is extinguished due to
fortuitous event
b. B can compel A to deliver another car
c. B can require another person to deliver a
car with expenses chargeable to A
d. Obligation is not extinguished but
converted into monetary consideration
A 212. A, B and c obliged themselves
solidarily to dive D a specific car valued at