Test 1

1. What is the definition of an obligation under Article 1156 of the New Civil Code of the Philippines?

a. Juridical necessity to do or not to do.

b. Juridical necessity to give or not to give.

c. Juridical necessity to give, to do or not to do.

d. Juridical necessity to give, not to give, to do or not to do.

2.  Which of the following is a positive and real obligation?

a. Obligation to teach

b. Obligation not to smoke in public place

c. Obligation to deliver the goods

d. None of the above

3. Among the essential elements of an obligation, which are considered the personal elements?

a. Obligee and obligor

b. Prestation and vinculum

c. Obligee and vinculum

d. Prestation and obligor

4. Which of the following obligations is not enforceable by a court action?

a. Legal obligation

b. Contractual obligation

c. Civil obligation

d. Religious obligation

5. The following are examples of natural obligations that cannot be enforced by court action but depends upon the voluntarily fulfillment of debtor, except

a. The obligation of a debtor to pay a loan evidenced by a written contract of loan but a period of 10 years had already lapsed from maturity date without demand from creditor.

b. The obligation of a debtor to reimburse a third person who has paid the debtor’s obligation after it has already lapsed.

c. The obligation of a testate or intestate heir to pay the debt of a decedent beyond the value of the property which he received by will or by the law of intestacy from the estate of the deceased.

d. The obligation of the employer of a “Kasambahay” to pay the 13th month pay of the latter. 

6. What is the source of obligation of parents to provide support to their children?

a. Law

b. Contracts

c. Quasi-contracts

d. Quasi-delicts

e. Delict

7. The officious manager in a negotiorum gestio shall be liable for any fortuitous event in any of the following instances, except

a. If he undertakes risky operations which the owner was not accustomed to embark upon.

b. If he has preferred his own interest to that of the owner.

c. If he fails to return the property or business after demand by the owner.

d. If he assumed the management in good faith.

8. What degree of evidence must be proved must be proved by the private offended party to be entitled to civil damages arising from crime or delict?

a. Proof beyond reasonable doubt

b. Clear and convincing evidence

c. Preponderance of evidence

d. Substantial evidence

9. In order to satisfy his claims against the debtor, the unpaid creditor has the following successive rights, except

a. To levy by attachment and execution upon all the property of the debtor, except such as exempt by law from execution.

b. To exercise all rights and actions of the debtor, except such as are inherently personal to him.

c. To ask for the rescission of the contracts made by the debtor in fraud of his rights.

d. To file an action for damages against a third person who acquires the property in bad faith the property subject of the litigation.

e. To file a criminal complaint against the debtor.

10, When the debtor binds himself to pay when his “means permit him to do so” or “as soon as possible” or “as soon as he has the money”, the obligation shall be deemed to be

a. Obligation with a suspensive condition

b. Pure obligation

c. Obligation in diem or with a resolutary period

d. Obligation ex die or with a suspensive period which period may be fixed by court

11. The following obligations are subject to suspensive conditions, except

a. I will give you P1,000 if you pass the CPA board exam.

b. You can use the book until you graduate in law school.

c. He will dance if he wins in lotto.

d. She will work if KFC becomes number 1.

12. It is an obligation which has an accessory undertaking to assume greater liability in case of breach.

a. Obligation with a condition

b. Obligation with a penal cause

c. Obligation with a period

d. Obligation with a substitute

13. This equitable doctrine is based on a principle that a person shall be precluded from denying an admission or representation against the person who has relied on such admission or representation.

a. Estoppel

b. Laches

c. Prescription

d. Novation

14. What is the right of a third person who pays for the debtor without the knowledge or against the will of the debtor?

a. The third person may demand the whole amount paid from the debtor.

b. The third person cannot recover any amount.

c. The third person may compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty or penalty.

d. The third person may recover only insofar the payment has been beneficial to the debtor but there will be no legal subrogation.

15. Where shall payment of an obligation be made?

a. Wherever the thing might be at the moment the obligation was constituted or perfected.

b. Place designated in the obligation.

c. Domicile of the debtor.

d. Domicile of the creditor.

16. It is a stipulation in a contract of pledge or mortgage whereby the thing pledged or mortgaged shall automatically become the property of the creditor in the event of non-payment of the debt within the period fixed by contract.

a. Novation

b. Dacion en pago

c. Pactum commissorium

d. Payment by cession

17. A, B, and C obliged themselves to deliver a specific car worth P300,000 to D. A and B are willing to deliver the car but C refused to perform the obligation despite repeated demands from D. What is the proper legal remedy available to D?

a. File an action for exact fulfilment with damages against C.

b. File an action for exact fulfilment with damages against A, B and C.

c. File an action for monetary amount against A and B for P100,000 without damages each and against C for P100,000 plus damages.

d. File an action for rescission of obligation plus damages against A, B and C.

18. Which of the following is the efficient cause in an obligation?

a. Obligor

b. Obligee

c. Vinculum

d. Prestation

19. While traversing a narrow bridge, a public utility bus driven by Don Simon collided with a private vehicle driven and owned by Joseph Garcia. Don Simon was an employed bus driver by JC Liner Bus Incorporated which owned and operated the abovementioned public utility bus. Christine, a passenger of the public utility bus, and Arin, a pedestrian crossing the bridge, were injured. What is the proper source of obligation if Arin will file a civil action against JC Liner Bus Incorporated?

a. Solutio Indebiti

b. Negotiorum Gestio

c. Contract

d. Culpa Acquiliana

20. In which type of obligation is delay not applicable?

a. Negative obligation

b. Positive obligation

c. Real obligation

d. Personal obligation

21. In the absence of diligence required by law and diligence validly agreed by the contracting parties, what is the default diligence to be observed by the contracting parties in the performance of their obligation?

a. Utmost diligence of very cautious person

b. Diligence of a father of good family

c. Diligence of a reasonably prudent person

d. Extraordinary diligence

22. Dina bought a car from Jai and delivered a check in payment of the same. Has Dina paid the obligation? Why?

a. No, not yet. The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents shall produce the effect of payment only when they have been cashed, or when through the fault of the creditor they have been impaired.

b. Yes, because a check is a valid legal tender of payment.

c. It depends. If the check is a manager’s check or cashier’s check it will produce the effect of payment. If it’s an ordinary check, no payment.

d. Yes, because a check is as good as cash.

23. Rudolf borrowed P1 million from Rodrigo and Fernando who acted as solidary creditors. When the loan matured, Rodrigo wrote a letter to Rudolf, demanding payment of the loan directly to him. Before Rudolf could comply, Fernando went to see him personally to collect and he paid him. Did Rudolf make a valid payment?

a. No, since Rudolf should have split the payment between Rodrigo and Fernando.

b. No, since Rodrigo, the other solidary creditor, already made a prior demand for payment from Rudolf.

c. Yes, since the payment covers the whole obligation.

d. Yes, since Fernando was a solidary creditor, payment to him extinguished the obligation.

24. It is a mode of extinguishing an obligation that refers to the meeting in one person of the qualities of creditor and debtor with respect to the same obligation.

a. Offset

b. Confusion

c. Donation

d. Subrogation

25. Who has the right of choice in application of payment?

a. Generally debtor unless granted to creditor

b. Generally creditor unless granted to debtor

c. Always debtor

d. Always creditor

26. Which of the following best describes a real contract?

a. It is a contract perfected by mere consent such as contract of lease and contract of sale.

b. It is a contract perfected by the delivery of the object of the contract such as contracts of deposit, of pledge, of loan and of commodatum.

c. It is a contract which must be in the form provided by law for their perfection such as contract of donation involving immovable property, together with the acceptance by the done, must be in public instrument to be valid.

27. Freedom to contract is one of the liberties of the people of the state as guaranteed by due process clause. This means that the contracting parties may establish such stipulations, clauses, terms and conditions as they may deem inconvenient, provided they are not contrary to the following, except

a. Law

b. Religion

c. Morals

d. Good customs

e. Public order

f. Public policy

28. The contract provides that the determination of the performance is left to of a third person. Is the stipulation valid?

a. No because it is contrary to law, morals, good customs, public order or public policy.

b. No because it violates mutuality of contract.

c. Yes because determination of the performance of contract may be left to a third person, whose decision shall not be binding until it has been made known to both contracting parties.

d. Yes because the determination of the third person is obligatory whether or not it is evidently inequitable.

29. A mortgages his land to B and the mortgage is registered in Registry of Property. Afterwards, A sells the land to C. Is the mortgage contract binding upon C?

a. No because C is not a party to the contract.

b. No because there is no privity between B and C.

c. Yes even if the mortgage contract is not registered.

d. Yes because in contracts creating real rights, third persons who come into possession of the object of the contract are bound thereby, subject to the provisions of the Mortgage Law and Land Registration Laws.

30. Consensual contracts are perfected by

a. Delivery of the object of a contract.

b. Execution of formalities required by law.

c. Mere consent by contracting parties.

d. Provisions of the law.

31. Which of the following is a valid agreement or stipulation?

a. Oral agreement to pay 2% per month interest based on the principal amount of the loan

b. Oral contract of antichresis

c. Written contract of sale of a piece of land by an agent in the name of the principal wherein the agent has oral authority to sell the land

d. Oral contract of partnership wherein the delivery of money will be done after 5 years.

32. As a general rule, no one may contract in the name of another without being authorized by the latter or unless he has by law a right to represent him. What is the status of a contract entered into in the name of another by one who has no authority or legal representation, or who has acted beyond his powers?

a. Rescissible

b. Unenforceable

c. Voidable

d. Null and void

33. Which contract is rescissible?

a. Those which are entered into by guardians whenever the wards they represent suffer lesion by more than ¼ the value of the things which are the object thereof.

b. Those agreed upon in representation of absentees, if the latter suffer lesion by more than ¼ the value of the things which are the object thereof.

c. Both A and B.

d. Neither A nor B.

34. What is the remedy of the injured party in case of null and void contracts?

a. Action for recission of contract

b. Action for declaration of nullity of contract

c. Action for annulment of contract

d. Action subrogatoria

35. Maria Clara is an enrolled student of Holy Trinity College. Aside from that, she is a current lessee of XYZ Dormitory near the said school. Holy Trinity College decided to close the operation of the school which prompted Maria Clara to leave her dormitory before the end of the lease term. As a result, XYZ Dormitory filed a civil action against Holy Trinity College. What principle of contract is violated by this action of XYZ Dormitory?

a. Mutuality of contract

b. Autonomy of contract

c. Obligatory force of contract

d. Relativity of contract

36. Which of the following is not an essential element of contract?

a. Meeting of minds

b. Consideration

c. Warranty

d. Prestation

37. These elements of contract refer to those which already exist in certain contract unless validly set aside or suppressed by the parties.

a. Essential elements

b. Mandatory elements

c. Accidental elements

d. Natural elements

38. Which of the following contracts can exist on its own?

a. Contract of loan

b. Contract of pledge

c. Contract of mortgage

d. Contract of guaranty

39. How shall court determine the nature of a contract?

a. By the principles of law

b. By stipulation of the contracting parties

c. By public opinion

d. By the provisions of the bible

40. Which of the following will nullify a contract?

a. Immoral motive of contracting party

b. Illegal motive of contracting party

c. Absence of cause of contract

d. All of the above

41. W and H are legally married under property regime of absolute community. W orally sold his specific laptop to H at a price of P500 when its book value is still P800 after H pointed a gun to W. Delivery and payment will happen after two years. What is the status of contract of sale of the specific laptop between W and H?

a. Unenforceable

b. Void

c. Voidable

d. Rescissible

42. How is a contract to constitute a deposit perfected?

a. By mere consent

b. By delivery of the subject matter of the contract

c. By execution of the formality required by law

d. By performance of the contract

43. Which of the following is an accidental element of contract?

a. Interest in a contract of loan

b. Determinate thing in a contract of sale

c. Warranty against eviction in a contract of partnership

d. Meeting of minds in a contract of marriage

44. Which of the following innominate contracts means “I give that you may do.”?

a. Do ut des

b. Facio ut facias

c. Facio ut des

d. Do ut facias

45. It is a contract whereby the parties give almost equivalent values; hence, there is real fulfillment.

a. Aleatory contract

b. Commutative contract

c. Executory contract

d. Executed contract

46. Which of the following statements about the principles of acceptance of offer is incorrect?

a. The person making the offer may fic the time, place and manner of acceptance, all of which must be complied with.

b. An offer made through an agent is accepted from the time acceptance is communicated to the agent not necessarily to the principal.

c. When the offeror has allowed the offeree a certain period to accept, the offer may be withdrawn at any time before acceptance by communicating such withdrawal, except when the option is founded upon a consideration, something paid or promised.

d. An acceptance must only be expressed but can never be implied.

47. The following are the instances which if happened to either offeror or offeree before meeting of minds between parties will make the offer ineffective resulting to nullity of contract, except

a. Sickness

b. Insanity

c. Civil interdiction

d. Insolvency

e. Death

48. X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father. Unwilling to do so, X’s heirs filed an action for specific performance against Y. Will their action prosper?

a. No, since after more than 6 years, the action to enforce the verbal agreement has already elapsed.

b. No, since the sale cannot under the Statute of Frauds be enforced.

c. Yes, since X bought the land and paid Y for it.

d. Yes, after full payment, the action became imprescriptible.

49. The following are the characteristics of a voidable contract, except:

a. Effective until set aside.

b. May be assailed/attacked only in an action for that purpose.

c. Can be confirmed or ratified.

d. Can be assailed only by either party.

50. X, who was abroad, phoned his brother, Y, authorizing him to sell X’s parcel of land in Pasay. X sent the title to Y by courier service. Acting for his brother, Y executed a notarized deed of absolute sale of the land to Z after receiving payment. What is the status of the sale?

a. Valid, since a notarized deed of absolute sale covered the transaction and full payment was made.

b. Void, since X should have authorized agent Y in writing to sell the land.

c. Valid, since Y was truly his brother X’s agent and entrusted with the title needed to effect the sale.

d. Valid, since the buyer could file an action to compel X to execute a deed of sale.