BUSINESS LAW AND REGULATION - PHILIPPINES 1. Where there are two or more debtors or two or more creditors, the obligation is presumed to be joint and several. True False 2. What is the effect if the obligation is suspensive, potestative and on the sole will of the debtor? A. The condition suspends the obligation B. The condition annuls the obligation C. The obligation is void D. The condition is deemed not imposed 3. Oriel obliged himself to deliver to Millecent 100 cavans of rice from his last harvest. In case of default, Oriel will deliver to Millecent 1,000 fake dollar bills. What is the status of the obligation and the penal clause? A. The obligation is void but the penal clause is valid. B. Both the obligation and penal clause are valid. C. The obligation and penal clause are both void. D. The obligation is valid but the penal clause is void. 4. Mora Solvendi is default on the part of the debtor. True False 5. This means the meeting in one (1) person of the qualities of both the creditor and debtor. A. confusion B. payment C. novation D. compensation 6. Condonation or remission is a actually a form of A. donation B. payment C. sale D. succession 7. Chamuel promised to pay Marl when he graduates from De La Salle - College of Saint Benilde Antipolo. In this example, the obligation is void. True False 8. The death of one (1) solidary creditor transmits his share to his heir. True False 9. Mikhael, Micah, and Marlene executed a promissory note binding themselves jointly to pay P30,000 to Kaila, John, and Jhona. Can the creditors proceed against Mikhael alone for the entire amount? No Yes None of the above 10. What is not a rule in the application of payments? A. The payment must be sufficient to cover all debts. B. Payment is applied to the interest first before the principal debt. C. If no choice is made, payment is applied to the more onerous (burdensome) debt. D. Choice of debtor to which debt a payment is applied to. 11. What is the effect of substantial performance or compliance? A. The obligation is partially extinguished. B. The obligation is totally extinguished. C. The obligation is extinguished but subject to payment of damages for the difference. D. There is no effect in the obligation since it was not fully complied with. 12. In an obligation with a penal clause, may the creditor still recover damages and interests in addition to the stipulated penalty? A. Yes, unless when stipulated by the parties. B. No, because the creditor is a good creditor and as such, only the penalty can be claimed. C. No. As a general rule, in an obligation with a penal clause, the penalty takes place of the indemnity for damages and the payment of interests in case of non-compliance. D. Yes, As a general rule, in an obligation with a penal clause, damages and payment for interests can be claimed simultaneously. 13. It is when only one prestation has been agreed upon, but the obligor may render another in substitution. A. Facultative Obligation B. Alternative Obligation C. Simple Obligation D. None of the above 14. Because of the Covid-19 pandemic, a fortuitous event, are debtors affected thereby excused from paying their debts? A. It depends if the event renders it impossible for the debtor to fulfil his obligation in a normal manner and if there is a stipulation that the debtor shall be excused from payment due to a fortuitous event. B. No, because the Covid 19 pandemic is just a temporary set back. C. Yes, because the Covid-19 pandemic is an event which could not be foreseen or which though foreseen, was inevitable. D. Yes, because all debts are extinguished during a pandemic. 15. An indivisible obligation is one where the object of which, in its delivery or performance, is not capable of partial fulfillment. True False 16. Kaila, Rich, Millecent and Oriel are solidary debtors to Angela in the amount of P100,000. Angela demanded payment of the entire P100,000 to Kaila, who in turn, paid the entire amount to Angela. Can Kaila run after Rich, Millecent and Oriel for P25,000 each? A. Yes, because Rich, Millecent and Oriel have to reimburse Kaila for their respective share in the obligation. B. Yes, because if not, they will be guilty of unjust enrichment. C. No, because as solidary debtors, Rich, Millecent and Oriel have no more obligation to pay Angela since the entire obligation has already been paid by Kaila. D. No, because as solidary debtor, Kaila is bound to pay the entire obligation to Angela. 17. The phrase "jointly and severally" in an agreement means the obligation is joint. True False 18. Mikhael promised to deliver a Mitsubishi Xpander vehicle to Bernadette. Later on, Bernadette agreed to accept a Toyota Innova instead. This is an example of Dacion. True False 19. This is conveyance of ownership of a thing as an accepted equivalent of performance. A. ration in payment B. caution in payment C. nation in payment D. dation in payment 20. Patricia borrowed P10,000 from Roland and promised the latter that she will pay her debt after their midterm examination in BUSLAWS on June 23, 2021. However, Patricia failed to pay Roland on June 23, 2021. Is Patricia considered in default? A. No, because Roland has yet to demand payment from Patricia. B. Yes, Patricia's failure to perform her obligation on June 23, 2021 is tantamount to delay. C. Yes, because Patricia failed to perform her obligation on the date agreed upon. D. No, Roland has to send Patricia a demand letter for her to comply with her obligation otherwise, she will be in default