1) As payment for pillows he bought, A makes a check payable to the bearer and hands the check to C, the seller of

grade A duck feather pillows. C used the same check to pay his supplier D who accepted the check as

payment. D used the same check to pay the services of A who teaches D how to play the piano.

The obligation is extinguished by

a. Loss of the thing due

b. Confusion

c. Novation

d. Compensation

2) Nida owes Ann P1M due and demandable on Jan 12, 2004. Ann owes Nida P1M due and demandable on or

before Jan 31, 2004. On February 1, 2004, Ann demanded that Nida pays the P1M debt due to Ann.

If you were Nida, what is the best way to extinguish your obligation?

a. Invoke confusion

b. Pay P1M to Ann

c. Invoke debtor's right of choice

d. Invoke compensation

3) Gemma & Glenda solidarily owe Babyruth Corporation P500k. When the loan fell due, Gemma and Glenda

were not able to pay. Because of non-payment, principal obligation ballooned to P650k to include interest of

P100k and penalty charges of P50k. Gemma and Glenda went to Madam Babyruth, company president of

Babyruth Corporation asking that the penalties amounting to P50k be condoned and they can pay the entire

P600k (principal P500k + interest P100k). Madam Babyruth agreed.

When Gemma and Glenda paid P600k, a voucher stating that the amount of P600k was paid as "full payment

of the loan." Babyruth Corporation demands that Gemma and Glenda still pay additional P50k. Glenda and

Gemma claims, however, that the P50k has been condoned already by Madam Babyruth as evidenced by the

voucher.

Can Babyruth Corporation still get the P50k it is demanding?

a. No, Babyruth Corporation can no longer get 50k because the company president has the authority to condone debts due

the corporation.

b. Yes, Babyruth Corporation can still get 50k because the company president is not authorized to remit debts due the

corporation.

c. No, Babyruth Corporation can no longer get 50k because the voucher is evidence of full payment and complies with the

the requirement that a condonation exceeding 5k must be in writing.

d. Yes, Babyruth Corporation can still get 50k because condonation was not reduced to writing. The voucher is merely proof

of payment of P600k, but not unequivocal remission of the 50k penalty charges.

4) Dodong owes Kokong P1M. Fifi, friend of Dodong, approaches Kokong and tells him, "I will pay you what

Dodong owes you." Kokong agrees.

Is there novation in this case?

a. There is novation because the creditor Kokong agreed that Fifi would pay the obligation of Dodong.

b. There is no novation because the original debtor Dodong did not agree to the change of debtor.

c. There is novation because there was express assumption of the obligation on the part of Fifi as the new debtor.

d. There is no novation because they did not agree that Dodong would be released from the obligation.

5) Which of the following is NOT a mode of extinguishing an obligation?

a. Expromision

b. Assignment of credit

c. Conventional subrogation

d. Delegacion