1. When an obligation is extinguished because of the passage of time, this is: (Phil CPA, 90-2)

a. Fulfillment of resolutory condition.

b. Arrival of a resolutory period

c. Rescission

d. Prescription

2. A thing is not deemed lost when it: (Phil CPA, 98-1)

a. disappears in such a way its existence is unknown or it cannot be recovered

b. Perishes

c. goes out of commerce

d. deteriorates

3. A thing is loss in the following cases. Which is the exception?

a. When the object goes out of commerce

b. When the object is perishes

c. When the object is diminish its value

d. When the object disappear.

4. A thing is considered lost when it:

a. All of the above

b. Stolen or robbed

c. Goes out of commerce

d. Perishes

5. One is not a requisite needed in order that obligation shall be extinguished by loss or destruction of the thing due: (Phil CPA, 94-2)

a. When the thing is lost without the fault of the debtor.

b. When the thing lost is generic.

c. When the thing lost is specific.

d. When the thing is lost before the debtor has incurred in delay.

6. D owes the following creditors: X, P20,000.00; Y, P30,000.00; and Z, P50,000.00. D is insolvent so he offers to assign all his properties (except those exempt from execution) to his creditors in payment of his debts. The creditors accept the offer and are able to sell the debtor's properties for P70,000.00. Based on the foregoing facts, which of the following statements is incorrect?

a. D is released from his liability only to the extent of P70,000.00 in the absence of any stipulation giving him total release.

b. The special mode of payment availed of by D is payment by cession.

c. D is released from his total liability of P100,000.00 even if there is no stipulation to that effect.

d. ThecreditorsdidnotbecometheownersofD's properties at the time of their assignment.

7. A executes promissory note in favor of B and that promissory note is negotiated by B and subsequently indorsed in favor of A. The obligation to pay the said promissory note is thereby extinguished because there is: (Phil CPA, 91-1)

a. Answer not given

b. Confusion or merger

c. Novation

d. Remission

8. When the characters of the creditor and the debtor are merged in one and the same person, there is extinguishment of the obligation by: (Phil CPA, 96-2)

a. Remission

b. Novation

c. Merger of rights

d. Compensation

9. This mode of extinguishment of obligations is when two (2) persons, in their own rights, are creditors and debtors of each other. (Phil CPA, 90-1)

a. Condonation or remission

b. Merger or consolidation

c. Novation

d. Compensation

10. Compensation shall take place when: (Phil CPA, 91-1)

a. One of the debts arises from a depositum or from the obligations of a depository or of a bailees in commodatum.

b. Two persons, in their own right are creditors and debtors of each other.

c. One of the debts consists in civil liability arising from a penal offense.

d. Answer not given.

11. The leviable properties of the debtor are transferred to the creditors to be sold and from the proceeds, the creditors are paid: (Phil CPA, 94-2)

a. Cession

b. Chattel mortgage

c. Pledge

d. Dacion en pago

12. An act of liberality whereby a creditor condones the obligation of the debtor: (Phil CPA, 98-1)

a. Novation

b. Remission

c. Compensation

d. Confusion

13. Which of the following is not an element of Compensation: (Phil CPA, 95-1)

a. There are two or more debts of the same kind.

b. Debts to be compensated are due and demandable.

c. There is controversy or adverse claim over any debts to be compensated.

d. There are two persons who are creditors and debtors of each other.

14. Upon the proposal of a third person, a new debtor substituted the original debtor without the latter's consent. The creditor accepted the substitution. Later, however, the new debtor became insolvent and defaulted in his obligation. What is the effect of the new debtor's default upon the original debtor? (2011 Bar)

a. The original debtor shall pay or perform the obligation with recourse to the new debtor.

b. The original debtor is freed of liability since novation took place and this relieved him of his obligation.

c. The original debtor remains liable since he gave no consent to the substitution.

d. The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part.

15. Asiong borrowed P1 million from a bank, secured by a mortgage on his land. Without his consent, his friend Boyong paid the whole loan. Since Asiong benefited from the payment, can Boyong compel the bank to subrogate him in its right as mortgagee of Asiong's land? (2011 Bar)

a. Yes, since a change of creditor took place by novation with the bank's consent.

b. No, but the bank can foreclose and pay Boyong back.

c. No, since Boyong paid for Asiong's loan without his approval.

d. Yes, since it is but right that Boyong be able to get back his money and, if not, to foreclose the mortgage in the manner of the bank.

16. X borrowed money from a bank, secured by a mortgage on the land of Y, his close friend. When the loan matured, Y offered to pay the bank but it refused since Y was not the borrower. Is the bank's action correct? (2011 Bar)

a. Yes, since it was X who has an obligation to the bank.

b. No, since Y, the owner of the collateral, has an interest in the payment of the obligation.

c. Yes, since X, the true borrower, did not give his consent to Y's offer to pay.

d. No, since anybody can discharge X's obligation to his benefit.

17. Three of the following are requisites of cession in payment. Which is the exception?

a. Complete or partial insolvency

b. More than one debt

c. Abandonment of all debtor's property not exempt from execution

d. One debtor and one creditor

18. Statement 1: The nullity of the principal obligation carries with it that of the penal clause.

Statement 2: Payment means not only the delivery of money but also the performance, in any other manner, of an obligation.

a. First statement is false; second statement is true.

b. Both statements are false

c. Both statements are true.

d. First statement is true; second statement is false.

19. Anne owed Bessy P1 million due on October 1, 2011 but failed to pay her on due date. Bessy sent a demand letter to Anne giving her 5 days from receipt within which to pay. Two days after receipt of the letter, Anne personally offered to pay Bessy in manager's check but the latter refused to accept the same. The 5 days lapsed. May Anne's obligation be considered extinguished? (2011 Bar)

a. Yes, since Bessy's refusal of the manager's check, which is presumed funded, amounts to a satisfaction of the obligation.

b. No, since tender of payment even in cash, if refused, will not discharge the obligation without proper consignation in court.

c. Yes, since Anne tendered payment of the full amount due.

d. No, since a manager's check is not considered legal tender in the Philippines.

20. Allan bought Billy's property through Carlos, an agent empowered with a special power of attorney (SPA) to sell the same. When Allan was ready to pay as scheduled, Billy called, directing Allan to pay directly to him. On learning of this, Carlos, Billy's agent, told Allan to pay through him as his SPA provided and to protect his commission. Faced with two claimants, Allan consigned the payment in court. Billy protested, contending that the consignation is ineffective since no tender of payment was made to him. Is he correct? (2011 Bar)

a. Yes, since Allan made no announcement of the tender.

b. No, since consignation without tender of payment is allowed in the face of the conflicting claims on the plaintiff.

c. Yes, a tender of payment is required for a valid consignation.

d. Yes, as owner of the property sold, Billy can demand payment directly to himself.

21. Which of the conclusion is correct?

a. F, a father, is indebted to C, a creditor, in the amount of P15,000,000. F dies leaving to his only son S a house and lot valued at P10,000,000. If S voluntarily pays C P15,000,000 he can recover the excess payment of P5,000,000.

b. D who indebted to C in the amount of P100,000 conveys to C ownership of his jeep which later on was found out to have a value only of P70,000. D still owes C P30,000.

c. D who is indebted to C in the amount of P100,000, conveys to C the ownership of his jeep with an agreed appraisal value of P150,000. C is now obligated to Pay D P50,000.

d. S offered the sale of a house and lot to B for P10,000,000 giving to the latter an option of 60 days. B paid S P10,000 as option money. There is already as between S and B a perfected contract of sale.

22. In three of the following cases, compensation shall not be proper. Which is the exception?

a. Civil liability arising out of criminal offenses

b. Bank deposit

c. Commodatum

d. Gratuitous support

23. Personal novation:

a. None of the above

b. Substitution of debtor

c. Subrogation of a third person in the place of the creditor

d. Both of (a) and (b)

24. The delivery of a private document evidencing a credit, made voluntarily by the creditor to the debtor even before the debt is paid, extinguishes the obligation by:

a. Express remission

b. Compensation

c. Novation

d. Implied remission

25. When the obligation consists in the delivery of a generic thing whose quality and circumstances have not been agreed upon:

a. The creditor can demand a thing of superior quality

b. The purpose and other circumstances shall be taken into consideration in determining the quality of the object to be delivered.

c. The debtor can deliver of inferior quality

d. The Debtor can deliver of superior quality even against the will of the creditor.

26. Which of the following is not an element of Compensation?

a. There are two persons who are creditors and debtors of each other.

b. There is controversy or adverse claim over any debts to be compensated.

c. Debts to be compensated are due and demandable.

d. There are two or more debts of the same kind.

27. D owes C P50,000.00. Subsequently, D proposed to C that T will assume his (D's) debt. C accepted the proposal of D. Assume that on due date, T could not pay because of his insolvency which was in fact subsisting but was not known to D or of public knowledge at the time that D delegated his debt. In this case -

a. The novation is void because D did not take steps to determine the solvency of T when he (D) delegated his debt.

b. C cannot hold D liable because his (D's) obligation was extinguished when he was substituted by T

c. C can revive D's debt because T's insolvency was already existing at the time that D delegated his debt.

d. C can revive D's debt whether or not he (D) was aware of T's insolvency since he (D) proposed the substitution.

28. Compensation is not proper when the debts arises in the following, except:

a. Contract of Mutuum

b. Obligation of a depositary

c. Commodatum

d. Depositum

29. Which of the following is not an element of Compensation:

a. Debts to be compensated are due and demandable.

b. There are two persons who are creditors and debtors of each other.

c. There are two or more debts of the same kind.

d. There is controversy or adverse claim over any debts to be compensated.

30. D obliged himself to give 5 grams of shabu to C. Later, the parties agreed that D would instead give to C 5 sacks of rice. Which of the following statements is correct?

a. The novation is valid because the new obligation is valid. Hence, C can demand the delivery of 5 sacks of rice from D.

b. The original obligation although void is validated by the new obligation.Hence, C can demand the delivery of 5 sacks of rice from D.

c. The new obligation is only voidable because D had not yet performed the original obligation at the time of the novation.Accordingly, the new obligation is binding and C may demand the delivery of 5 sacks of rice from D until the new obligation is annulled by a proper action in court.

d. The novation is void because the original obligation is void.Hence, C cannot demand the delivery of 5 sacks of rice from D.

31. Which of the following is not legal subrogation?

a. When a creditor pays another creditor who is preferred

b. When a third person interested in the obligation, pays even without the approval of the debtor

c. None of them

d. When a third person, not interested in obligation, pays with the approval of the debtor

32. A owes B P10,000.With consent of both, 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? (Phil CPA, 98-1)

a. B should be preferred

b. C should be preferred

c. A may choose whom to pay

d. B and C should divide the P5,000 equally

33. The distinction between conventional subrogation and assignment is that in conventional subrogation: (Phil CPA, 91-1)

a. It is a mere cession of right.

b. An obligation is extinguish and another appears.

c. Answer not given.

d. The same obligation, without being extinguished, is transferred to another.

34. A obliged himself to give B a car if B places among the top ten in the CPA Board Exam. Subsequently, they agreed that A will give B the car if B merely passes the CPA Board. This is an example of: (Phil CPA, 94-2)

a. Mixed novation

b. Implied novation

c. Personal novation

d. Real novation

35. Which of the following is not legal subrogation?

a. When a third person, not interested in obligation, pays with the approval of the debtor

b. When a third person interested in the obligation, pays even without the approval of the debtor

c. When a creditor pays another creditor who is preferred

d. None of them

36. When a third person of his own accord and even without the knowledge of the original debtor assumes the obligation with the consent of the creditor:

a. Subrogation

b. Delegacion

c. Real novation

d. Expromission

37. Andy owes Baby P200,000.00 demandable and due on September 10, 2019. Baby, on the other hand, owes Andy P200,000.00 demandable and due on or before September 30, 2019. If Baby claims compensation on September 10, 2019, can Andy rightfully oppose?

a. None of the above.

b. Andy can properly oppose and if Baby still refuses to accept his payment made on September 30, 2019, Andy can deposit his payment in court.

c. No. Baby who was giving the benefit of the term, may claim compensation because he could then choose to pay his debt on September 10, 2019 which is actually "on or before September 30, 2019."

d. Yes, Andy can properly oppose because for compensation to take place, mutual consent of both parties is necessary.

38. On December 23, 2019, Carlota, the owner of a sarisari store, purchased several bags of "Yummy" candy worth P1,000.00 from Delisyus, an authorized dealer of the product. Carlota tendered her payment to Delisyus consisting of 200 pieces of P5.00 coins. In this case:

a. Delisyus may consign the payment in court if Delisyus refuses to accept it and his obligation is automatically extinguished.

b. Delisyus may refuse to accept the payment and demand that she be paid in bills.

c. Delisyus cannot refuse to accept the payment because whatCarlotawasofferingaspaymentis legal tender.

d. The tender made by Carlota was invalid because the tendered amount is not legal tender.

39. Mr. Soler is under obligation to deliver to Mr. Buitre a Honda CRV 2020 Model with engine #122477 and plate ABC#123. When Mr. Soler was on his way to deliver the car, it was destroyed but Mr. Soler was not yet in legal delay. The law presumes that the loss is due to:

a. The defective nature of the car

b. The fault or negligence of the debtor.

c. Default on the part of the Debtor

d. A fortuitous event.

40. Which of the following debt may be the subject of compensation?

a. Only valid, rescissible and voidable debts

b. Only perfectly valid debt

c. Only valid and rescissible debts.

d. Only valid, rescissible, voidable and unenforceable debts

41. D owes C P3,000,000 which is collateralized by a mortgage on the house and lot of D. Subsequently, D borrowed P5,000,000 from E and also mortgaged the same house and lot in favor of the latter. If E pays C P3,000,000, there will arise.

a. Conventional subrogation

b. Legal subrogation

c. Real novation

d. Payment by a third person

42. Statement 1: The right to make the application for payment once exercised is irrevocable unless the creditor consents to the change.

Statement 2: The application for payments as to debts not yet due may be made if there is stipulation that the debtor may apply.

a. First statement is false; second statement is true.

b. First statement is true; second statement is false.

c. Both statements are true.

d. Both statements are false

43. In order that an obligation may be extinguished by the loss of the thing, the following requisites must be present except:

a. The object must be a determinate thing

b. The loss of the thing occurs without the fault of the debtor

c. The object is a generic object

d. The debtor is not guilty of legal delay

44. Statement 1: Condonation or remission may be onerous or gratuitous.

Statement 2: The delivery of a public document evidencing the credit, made voluntarily by the creditor to the debtor, implies the renunciation of the action which the former had against the latter.

a. First statement is true; second statement is false.

b. Both statements are true.

c. Both statements are false

d. First statement is false; second statement is true.

45. Under Central Bank Circular 357 series of 2006, which of the following is not legal tender:

a. P900 in the denomination of P5 coins

b. P10,000 in the denomination of P20 bills

c. P120 in the denomination of P0.25 coins

d. P750 in the denomination of P1 coins

46. Payment under the following cases are valid except:

a. Payment made to the creditor.

b. Payment made to incapacitated person that redounded to his benefit

c. Payment made to 3rd person that redounded to the benefit of the creditor

d. Payment made in good faith in possession of the document evidencing the credit.

47. Henry, husband, and Wilma, wife, are legally separated.By order of the court which decreed the legal separation, Henry is obliged to give a monthly support of P10,000.00 to Wilma payable within the first five days of the month.Wilma owes Henry P10,000.00 by way of a business loan. On the other hand, Henry has not yet given Wilma's support of P10,000.00 for this month.Both debts are already due.Which of the following statements is correct?

a. Neither one may claim compensation because the debts are not of the same kind.

b. Wilma may claim compensation but not Henry.

c. Bothdebts areextinguishedbylegalcompensation because both are already due.

d. Henry may claim compensation but not Wilma.

48. Which of the following is not a ground for the extinguishment of an obligation?

a. Merger

b. Compensation

c. Remission

d. Death of creditor

49. Dada owes Cokey P150,000 payable on January 5, 2020. To fulfill the obligation, Dada with the consent of Cokey, delivers his only car on January 4, 2020 worth P140,000 at around 8:00 pm to Cokey's residence. Cokey accepted the car but the same was destroyed by lightning afterone hour upon delivery. In this case:

Group of answer choices

a. Dada Still owes Cokey P140,000 for the amount of the car loss by lightning.

b. Dada still owes Cokey the amount of P150,000

c. Dada is no longer liable to Cokey because the obligation is extinguished by fortuitous event.

d. Dada still owes Cokey the amount of P10,000

50. OE is obliged to give OR his 2019 Mitsubishi, 4 door sedan Lancer with plate number NBA 123 on September 30, 2020. On October 10, 2020, OE had not yet deliver the car which was totally destroyed by an earthquake on such date. Is OE still liable?

Group of answer choices

a. No. The obligation is extinguished. The specific thing was lost due to fortuitous event and no demand or deliver was made by OR.

b. Yes. OE is in legal delay. OR can claim damages.

c. Yes. OR can instead demand for another car of equivalent value from OE.

d. No. Even OE is already in default and can plead impossibility of performance.