1. D is obliged to give C a specific watch, a specific ring, or a specific 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 D's 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 delivery of the bracelet or the price of the ring which was the last item that was lost plus damages.

2. D is obliged to give C a specific phone. The parties agreed that D may give a specific laptop as substitute. Which of the following statements is true?

(A) If the phone is lost through a fortuitous event before substitution, the obligation is extinguished.

(B) If the laptop is lost through fortuitous event before substitution, the obligation is extinguished.

(C) If the phone is lost through fortuitous event after substitution, the obligation is extinguished.

(D) If the phone is lost through the debtor's fault after substitution, the debtor shall pay damages

3. A, B, C, and D are obliged to give V 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

4. A, B, C, and D, solidary debtors, are obliged to give V, W, X, Y, and Z, solidary creditors the amount of 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 1,000.00.

5. A, 25 years old, B, 35 years old, and C, 15 years old, 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.

6. 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.

7. 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) I and III are true.

(B) I and IV are true.

(C) II and III are true.

(D) II and IV are true.

8. On July 1, 2013, D obliged himself to give C P50,000.00 if C will marry X on or before December 31, 2013. The condition of the obligation is a:

(A) positive condition.

(B) negative condition.

(C) joint condition.

(D) impossible condition.

9. Refer to the previous number. Which of the following is NOT correct?

(A) The obligation of D is demandable if C marries X on or before December 31, 2013.

(B) The obligation of D is extinguished if it is already January 1, 2014 and C has not yet married X.

(C) The obligation of D is extinguished on December 2, 2013 if X dies on the said date before marrying C.

(D) The obligation is demandable if C marries X on January 1, 2014.

10. Which of the following is not considered a conditional obligation?

(A) D to pay C P50,000.00 as soon as D has the means.

(B) D to pay C P50,000.00 if C marries Y.

(C) D to pay C P50,000.00 if C tops the Law 1 departmental examinations.

(D) D to pay C if X dies of malaria.

11. A, B, and C are solidarily liable to X for P30,000.00. A pays X the whole amount due. C, however, is insolvent.

(A) A alone will bear the share of C who is insolvent since it was A who voluntarily made the payment.

(B) A can collect from B P10,000.00.

(C) A can collect from B P15,000.00.

(D) A can demand a refund of P10,000.00 from X pertaining to C's share since C is insolvent.

12. A, B, and C executed the following promissory note:"I promise to pay D or order the sum of P30,000.00 on June 30, 2004.(sgd.) A(sgd.) B(sgd.) C"On June 30, 2004, D can collect from A:

(A) P10,000.00

(B) 30,000.00

(C) 20,000.00

(D) Nothing, because the note is void since it says "I promise.." but was signed by three persons.

13. An obligation where various prestations are due and 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.

14. Alternative obligation and facultative obligation are similar in which of the following respects?

(A) The right of choice may be given either to the debtor or creditor.

(B) Several prestations are due.

(C) Only one prestation is due but the debtor may render another substitution.

(D) The obligation becomes a simple obligation once the choice of the prestation is made and communicated.

15. A, B, and C are solidary debtors of X, Y, and Z solidary creditors, in the amount of 2,700. X renounces the whole obligation without the consent of Y and Z. The debtors accepted the renunciation.

(A) The whole obligation is extinguished but X must give to Y and Z their proportionate share of 900 each

(B) Only 900 is extinguished.

(C) No part of the obligation is extinguished

(D) Only 300.00 is extinguished.

16. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-debtors:

(A) if such payment was made before the obligation is due

(B) if such payment was made after the obligation has prescribed or become illegal

(C) if such payment was made in the compliance with the demand made to him by all the creditors

(D) if such payment was made after the obligation has become due and demandable and notice of payment was made only to him.

17. The following words are used to indicate joint liability, EXCEPT:

(A) Jointly and severally

(B) Proportionately

(C) Mancomunadamente

(D) Pro rata

18. A & B are solidary debtors of C in the amount of P10,000.00. This is a case of:

(A) Mixed solidarity

(B) Active solidarity

(C) Passive solidarity

(D) Conventional solidarity

19. A & B are solidarily liable to C in the amount of P4,000.00. In an action by C against A, what is the effect if A's defense is B's insanity at the time of the perfection of the contract?

(A) His obligation is extinguished.

(B) He is released from liability for B's share

(C) He must pay the entire P4,000

(D) He is liable to pay for damages

20. Carla borrowed a sum of money from Charles with a certain rate of interest. Carla now wants to increase the rate of interest with the consent of Charles but with the consent Macon who is the creditor of Charles. What principle in contracts prohibits Carla from increasing the rate of interest?

(A) autonomy of contracts

(B) relativity of contracts

(C) mutuality of contracts

(D) consensuality of contracts