University of Mindanao- Digos College

FIRST PERIODICAL EXAM

Law 1- Obligations and Contracts

MULTIPLE CHOICE

1. I–If a person obliged to do something fails to do it, the same shall be executed at his cost.
II-Those who in the performance of their obligations are guilty of fraud, negligence, or delay
and those who in any manner contravene the tenor thereof, are liable for damages.
A. True; true
B. True; false
C. False; true
D. False; false

2. I-Responsibility arising from fraud is demandable in all obligations. Any waiver of an action
for fraud is void.
II–If the law or contract does not state the diligence which is to observed in the performance
of an obligation, that which is expected of a father of a good family shall be required.
A. True; true
B. True; false
C. False; true
D. False; false

3. 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 condition, 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 the contract of sale, the vendor has a right to the fruits of the
thing from the time the obligation to deliver arises.

4. A is obliged to deliver his only car to B on November 20, 2009. If A does not deliver, and
on November 22, 2009, a typhoon destroys the car.
A. A is not liable because the obligation is extinguished.
B. A is liable because he is in delay.
C. A and B will divide the loss equally.
D. A’s obligation is converted into a monetary obligation.

5. 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 accessions
and accessories, even though they may not have been mentioned.
A. True; true
B. True; false
C. False; true
D. False; false

6. This obligation is demandable at once when it

 A. has a resolutory condition. C. is with a term ex-die.
B. has a suspensive condition D. has a period.

7. When the debtor binds himself to pay when his means permit him to do so, the obligation
shall be deemed to be with a
A. Resolutory period C. Potestative condition
B. Suspensive condition D. Period.

8. A promise to give B his Volvo car if B passes the CPA Board Exams. Pending the results of
the exams, the car is destroyed by a fortuitous event without any fault on the part of A, As a
result
A. The obligation of A is extinguished.
B. The obligation of A is converted into monetary obligation.
C. The obligation of A will equitably reduced.
D. A will have to give B another car of equivalent value.

9. A period with a suspensive effect.

A. I will support you beginning January 1 of next year.
B. I will support you until January 1 of next year.
C. I will support you if A dies of TB.
D. I will support you if A marries B.

10. A period with a resolutory effect.

A. I will support you beginning January 1 of next year.
B. I will support you until A dies.
C. I will support you if A dies.
D. I will support you if A dies of TB.

11. The obligation begins only from a day certain or upon the arrival of said period.
A. Ex die C. Conditional
B. In diem D. With a period

12. The obligation remains valid up to a time certain but terminates upon the arrival of said
period.
A. With a period C. Ex die
B. Conditional D. In diem

13. Anything paid or delivered before the arrival of the period, the obligor being unaware of the
period or believing that the obligation has become due and demandable.
A. May be recovered without interests.
B. May be recovered with interests.
C. May be recovered with fruits and interests.
D. May not be recovered.

14. 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 persons

15. 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 the mistress of A.
C. A will give B P100,000 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.

16. Where two or more prestations have been agreed upon but only one is due, the obligation is
A. Alternative C. Conjoint
B. Facultative D. Solidary

17. Using the preceding number, the right of choice, belongs

A. To the debtor
B. To the creditor
C. To both the creditor and debtor
D. To third person

18. A is obliged to give B, at A’s option either object No. 1, Object No. 2, or Object No. 3. If all
objects were lost thru A’s fault, which is correct?
A. The value of the first thing lost plus damages must be given to B.
B. The value of the last thing lost plus damages must be given to B.
C. The value of any of the things lost plus damages must be given to B.
D. The obligation is extinguished.

19. I - Using the preceding number, if objects nos. 1 1and 2 were destroyed by a fortuitous event
and later object No. 3 is destroyed by A’s fault, A would still be liable.
II - Using the preceding number, if objects nos. 1 1and 2 were destroyed by A’s fault and later
object No. 3 is destroyed by fortuitous event, A would still be liable.
A. True; true C. False; true
B. True; false D. False; false

20. A is obliged to give B either objects No. 1 or No. 2 or No. 3 at B’s option. Before B
communicated his choice to A. object No. 1 had been destroyed, thru A’s 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 A’sfault.
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.

21. Any of the debtors is bound to render compliance of the entire obligation.
A. alternative C. joint
B. facultative D. solidary

22. In a joint obligation, joint means any of the following, except

A. pro-rata C. mancomunada simple
B. proportionate D. individually and collectively

23. 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.

24. 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.

25. Using the preceding number, but the substitute is lost due to debtor’s 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.

26. 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 felony.
D. liability of partners arising out of a contract.

27. This will result to a solidary liability

A. vitiated consent on the part of one of the debtors.
B. insolvency of one of the debtors.
C. default on the part of one of the debtors.
D. quasi-delict commited by one of the partners acting in the ordinary course of business.

28. A and B solidary debtors of C and D, joint creditors, to the amount of P1,000 – C can
demand
A. P1,000 from A or P1,000 from B C. P500 from A and P500 from B
B. P500 from A or P500 from B D. P250 from A and P250 from B

29. A and B joint debtors of C and D, solidary creditors, to the amount of P1,000 – C can
demand
A. P1,000 from A or P1,000 from B C. P500 from A and P500 from B
B. P500 from A or P500 from D. P250 from A and P250 from B

30. A and B are joint debtors of C and D, joint creditors, to the amount of P1,000 – C can
demand
A. P500 from A or P500 from B C. P250 from A and P250 from B
B. P250 from A or P250 from B D. P500 from A and P500 from B

31. In 2007, A, B and C bound themselves in solidum to give D P9,000 subject to the following
conditions: A will pay in 2007, B, if D passes the 2008 CPA board exams and C will pay in
2009. In 207, how much can D demand from C?
A. P9,000 C. P3,000
B. P6,000 D. P0

32. A, B and C are solidary debtors of D for P3,000. D remitted C’s share. A therefore paid later
only P2,000. A can recover reimbursement from B in the amount of
A. P1,000 C. P500
B. P1,500 D. P0

33. Using the preceding number, if B is insolvent, A can recover from C the amount of
A. P1,000 C. P500
 B. P1,500 D. P0

34. A, B and C are solidary debtors of D for P1,000. D remitted the entire obligation when A
offered to pay. A can demand reimbursement from B in the amount of
A. P1,000 C. P333
B. P500 D. P0

35. A, B and C are solidary debtors of D for P3,000 but A was incapacitated to give his consent
as he was a minor. If D sues B, how much will B be liable for?
A. P3,000 C. P1,000
B. P2,000 D. P 0

36. Using the preceding number, if D sues A, how much will A be liable for?
A. P3,000 C. P1,000
B. P2,000 D. P 0

37. 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 obligation is extinguished up to P60,000.

38. A, B and C borrowed P6,000 from D and E, payable in 3 months with A giving in pledge
her diamond ring as security for the amount borrowed. How much can E collect from C?
A. P1,000 C. P3,000
B. P2,000 D. P6,000

39. 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
B. Conjoint obligation
C. Facultative obligation
D. Obligation with a penal clause

40. 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.

41. This is an obligation with a resolutory obligation.

A. I’ll give you P10,000 if you pass the 2009 CPA board examination.
B. I’ll give you my car now, but should you fail in any of your subjects, your ownership will
cease and it will be mine again.
C. I’ll give you P10,000 on December 31, 2009.
D. I’ll give you P10,000 if A dies of TB.
42. 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 C. False; true
B. True; false D. False; false

43. 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 further 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.

44. 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 that the event cannot occur.
A. True; true C. False; true
B. True; false D. False; false

45. I - A father promised to give his son 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 a car 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 31,2009. If by December 31, 2009, has not yet
married her boyfriend, or if prior thereto, her boyfriend has died, the obligation is
extinguished.
A. True; true C. False; true
B. True; false D. False; false

46. 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 C. False; true
B. True; false D. False; false

47. 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
D. B may refuse A’s payment as the period is deemed for the benefit of B.

48. 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 not furnish the creditor the guarantees 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.

49. A oblige himself to pay B P100,000 in 30 days plus a penalty of P10,000 if A fails to pay
the obligation in due time. A failed to pay the obligation in 30 days, B can demand from A

A. The principal of P100,000 plus P10,000 penalty.

B. The principal of P100,000 plus P10,000 penalty plus legal interest.
C. The principal of P100,000 plus P10,000 penalty, plus legal interest, plus damages.
D. The principal of P100,000 plus legal interest, plus damages.

50. The creditor is entitled to recover damages and interest in addition to the penalty stipulated
I. When the debtor refuses to pay the penalty.
II. When the debtor is guilty of fraud in the fulfillment of the obligation.

A. True; true C. False; true

B. True; false D. False; false