LAW

1.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. Statements II and III are true.

b. Statements I and III are true.

C. Statements II and IV are true.

d. Statements I and IV are true.

2.Dominico and Domingo are jointly and severally liable to Crispino for P100,000.00. The obligation is due on June 30, 2016. On June 25, 2016, Dominico paid the whole amount of the note to Crispino. If Domingo reimburses Dominico on July 15, 2016, Dominico is entitled to receive from Domingo:

Group of answer choices

a)P50,000.00 with no interest because Dominico paid the note before due date.

b)P50,000.00 plus interest from June 25 to June 30, 2016.

c)P50,000.00 plus interest from June 30 to July 15, 2016.

d)P50,000.00 plus interest from June 25 to July 15, 2016.

3.Statement 1:In obligations with a penal clause, the penalty shall substitute the indemnity for damages and the payment of interests in case of noncompliance, if there is no stipulation to the contrary.

Statement 2: Proof of actual damages suffered by the creditor is necessary in order that the penalty may be demanded.

Statement 3: The penal clause is void if it is iniquitous or unconscionable

Statement 4: The nullity of the penal clause carries with it that of the principal

Group of answer choices

a)All statements are true

b)Two statements are true

c)Only one statement is true

d)Three statements are true

4.When penalty can be enforced?

a)When the penalty is contrary to moral

b)When the principal obligation is void

c)The obligation cannot be fulfilled due to fortuitous event

d)There is a breach of obligation

5.When the penalty takes the place of damages?

a)Subsidiary penal clause

b)Compensatory penal clause

c)Joint penal clause

d)Punitive penal clause

6.Calayan promised to construct a house for Kristina. The contract carried a penal clause that in case of non performance, Calayan must pay a penalty of P70,000. Calayan failed to construct the house and, as a consequence, Kristina suffered damage in the amount of P50,000. However, Kristina can prove that the damages suffered by her is P80,000. Kristina can recover a penalty of:

a)P50,000

b)P120,000

c)P70,000

d)P80,000

7.Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-debtors: (Phil CPA, 87-1)

a)If such payment was made in compliance with the demand to him by all the creditors.

b)If such payment was made before the obligation is due.

c)If such payment was made after the obligation has prescribed or become illegal.

d)If such payment was made after the obligation has become due and demandable and notice of payment was made only to him.

8.Statement 1. Penal clauses, being the product of agreement between the parties, may not be reduced or mitigated by the courts under all circumstances.

Statement 2. D owes C P20,000.00 to secure the payment of which D pledged a diamond ring. Subsequently, this ring was voluntarily returned to D by C. The obligation of D to pay C P20,000. is impliedly condoned and therefore extinguished.

a)Both are true

b)No. 1 is true; No. 2 is false

c)No. 1 is false; No. 2 is true

d)Both are false

9.A, B and C jointly and severally obligated themselves to deliver to X a determinate car worth P600,000. On due date, because of B's fault, said car was not delivered causing a P9,000 damage to X. B is insolvent.

a)X can collect from C the whole of P609,000 and collect reimbursement from A P200,000 only.

b)X can collect from A the sum of P600,000 only because he is not the party at fault but can recover reimbursement from C in the amount of P309,000.

c)X can collect from A, B and C P203,000 each.

d)X can collect from C the whole amount of P609,000 and collect reimbursement from A in the amount of P304,500.

10.D borrowed from C P100,000 with a penalty of 20% if not paid on time. On due date, D was able to pay C the borrowed amount. How much should D pay C?

a)P100,000 + 20% + interest + damages

b)P100,000 + 20% + interest

c)P100,000 + 20%

d)P100,000 only

11.A obliges himself to pay X P100,000 in 30 days plus a penalty of P20,000 if A fails to pay the obligation in due time. A failed to pay the obligation in 30 days. X can demand from A: (Phil CPA, 90-2)

a)The principal of P100,000 plus legal interest.

b)The principal of P100,000 plus P20,000 penalty, plus legal interest, plus damages.

c)The principal of P100,000 plus P20,000 penalty, plus legal interest damages.

d)The principal of P100,000 plus P20,000 penalty.

12.Which of the following statement is not correct?

a)The debtor cannot exempt himself from the performance of the obligation by paying the penalty, save in the case where this right has been expressly reserved for him

b)The nullity of the penal clause does not carry with it that of the principal obligation.

c)In obligations with a penal clause, the penalty shall substitute the indemnity for damages and the payment of interests in case of noncompliance, if there is no stipulation to the contrary.

d)Proof of actual damages suffered by the creditor is necessary in order that the penalty may be demanded.

13.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)Statements I and IV are true.

b)Statements II and IV are true.

c)Statements II and III are true.

d)Statements I and III are true.

14.In the following cases, interest or damages can be collected by the creditor from the debtor in addition to the penalty agreed upon.

a)If there is a stipulation to that effect.

b)If the debtor defaults in the payment of the penalty.

c)Where the debtor commits fraud in the fulfillment of the obligation.

d)All of the above

15.On December 23, 2018, 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)The tender made by Carlota was invalid because the tendered amount is not legal tender.

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

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

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

16.Which of the following is not really a special payment?

a)Application for payment

b)Tender of payment and consignation

c)Payment by cession

d)Dation in payment

17.Payment by third person are presumed for the benefit of the creditor in the following cases, except:

a)Determinacion

b)Ratification

c)Estoppel

d)Subrogation

18.This special form of payment is the conveyance of the ownership of a thing as accepted equivalent of performance. (Phil CPA, 85-2)

a)Application of payment

b)Assignment of property or cession en pago

c)Tender of payment and consignation

d)Dation in payment or dacion en pago

19.Bulacan borrowed from Bruho Bank P2,000,000 payable at the end of 5 years. Before maturity, an extraordinary deflation supervened causing the value of the debt to rise to P5,000,000 on the date of maturity. On due date, Bulacan must pay Bruho Bank:

a)P20,000,000

b)P5,000,000

c)P800,000

d)P2,000,000

20.It presupposes not only that the obligor is able, ready, and willing, but more so, in the act of performing his obligation. (Phil CPA, 93-1)

a)Tender of payment

b)Obligation to sell

c)Promissory note

d)Bill of exchange

21.Consignation is a mode of payment which extinguishes an obligation. Which of the following is not a requisite for consignation? (Phil CPA, 87-1)

a)There must be prior notice of consignation to persons interested in the fulfillment of the obligation.

b)Existence of a valid debt.

c)Prior notice has not been made.

d)Actual consignation with the proper judicial authorities.

22.If the creditor to whom tender of payment has been made refuses without just cause to accept it, the debtor shall be released from responsibility by: (Phil CPA, 91-1)

a)Adjudication or dacion en pago.

b)Answer not given.

c)Consignation of the thing or sum due.

d)Assignment of property

23.Dacion en pago as distinguished from sale: (Phil CPA, 98-1)

a)there is a greater degree of freedom in fixing the price

b)the object is always existing and specific

c)the cause is the price

d)there is no pre-existing obligation

24.Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-debtors: (Phil CPA, 87-1)

a)If such payment was made after the obligation has become due and demandable and notice of payment was made only to him.

b)If such payment was made in compliance with the demand to him by all the creditors.

c)If such payment was made before the obligation is due.

d)If such payment was made after the obligation has prescribed or become illegal.

25.In three (3) of the following cases advanced payment by the debtor is not recoverable. Which is the exception? (Phil CPA, 89-2)

a)The advance payments were made by both parties reciprocally.

b)The debtor was not aware of the period.

c)The obligation was not due and demandable but the debtor believed it was already due and demandable.

d)The payment is only for interest and credited to the proper period.

26.In this case, advance payment by the debtor is recoverable: (Phil CPA, 90-1)

a)If the creditor demanded for the advance payment and the debtor knew it was not yet due.

b)If the advance payment is in reciprocity to the advance payment of the other party.

c)If the advance payment is only of interest due.

d)If the debtor was unaware of the period.

27.C is the creditor of D in the amount of P50,000. C is the guarantor of D paid C partially with P20,000. A not knowing the partial payment of D and against the will of D paid C the amount of P50,000. What is the effect of this payment in the obligation: (Phil CPA, 89-2)

a)The obligation is extinguished. A can demand P30,000 from D, but if D cannot pay, A cannot ordinarily proceed against guarantor C because A is not entitled to subrogation.

b)The obligation is extinguished. A can demand P30,000 from D because this amount benefited D or A having subrogated into rights of C can proceed against guarantor G.

c)The obligation is extinguished. A cannot recover any amount from D but A can demand reimbursement from C in the amount of P50,000.

d)The obligation is not extinguished. A's payment against being the will of D does not extinguish the obligation.

28.A owes X P50,000 payable on or before June 30, 1990. S who is not a party to the contract and without the consent and against the will of A paid 1990 when the prevailing rate of interest was 12% per annum. (Phil CPA, 90-2)

a)S can ask reimbursement from A in the amount of P50,000.

b)S can ask reimbursement from A in the amount of P50,000 plus 12% interest from April 1 to June 30, 1990.

c)S can ask refund from X because the payment by S was against the will of A.

d)S cannot ask reimbursement from A because the payment by S is without the consent and against the will of A.

29.The following shall produce the effect of payment of debts: (Phil CPA, 91-1)

a)Delivery of Promissory Notes.

b)Answer not given.

c)Delivery of check

d)Tender of Central Bank Notes.

30.Sale is distinguished from dation in payment in that in sale: (Phil CPA, 91-2)

a)Answer not given.

b)There is a pre-existing obligation or credit.

c)The cause is the price.

d)It is a mode of extinguishing an obligation in the form of payment.

31.The P1,000 bills issued by the central bank and in circulation are considered: (Phil CPA, 93-1)

a)Bills of exchange

b)Checks

c)Promissory note

d)Legal tender

32.To which of these modes of special payment is the law on sales applicable?

a)Application of payment

b)Dacion en pago

c)Tender of payment and consignation

d)Cession en pago

33. Which of the following is not is not a mode of extinguishing an obligation?

a)Confusion

b)Quasi delict

c)Loss of specific things

d)Condonation

34. Payment shall be made to, except:

a)Creditor's assignee

b)Obligee

c)Executor of the deceased oblige

d)Obligor

35.When the debtor abandons or transfers all his properties to the creditors so that the creditors may sell the properties and out of the net proceeds the creditors recover their claims this is called:

a)Tender of payment and consignation

b)Dacion en pago

c)Remission

d)Payment of cession

36.Statement 1: Payment shall be made to the person in whose favor the obligation has been constituted, or his successor in interest, or any person authorized to receive it.

Statement 2: Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.

a)Both statements are true.

b)Both statements are false

c)First statement is false; second statement is true.

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

37.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)First statement is true; second statement is false.

d)Both statements are true.

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

a)Complete or partial insolvency

b)Abandonment of all debtor's property not exempt from execution

c)More than one debt

d)One debtor and one creditor

39.Consignation alone shall give rise to the extinguishments of an obligation, except:

a.When two or more persons claim the same right to collect.

b.When he is incapacitated to receive the payment at the time it is due.

c.When the creditor is absent or unknown, or does not appear at the place of payment.

d.It is not made strictly in consonance with the provisions which regulate payment.

40.The following statements pertain to either payment by cession ordacion en pago.

I.The debtor is insolvent.

II.Ownership of the thing/s is transferred to the, creditor/s.

III.Plurality of creditors is required.

IV.Obligations are totally extinguished as a rule.

a)Statements I and III pertain todacion en pago.

b)Statements III and IV pertain to payment by cession.

c)Statements II and IV pertain todacion en pago

d)Statements I and IV pertain to payment by cession.

41.X, a minor sold to Y his parcel of land for P100,000. From the proceeds of the sale, X deposited P30,000 in the bank spent for food, clothing and other personal expenses P20,000, joined a tour abroad costing P20,000, lost in gambling P20,000 and loaned P10,000 to Z who became insolvent. Upon reaching the age of 21 years, X files an action for annulment which the court granted. Y was required to return the land to X and X was made to return to Y the amount of: (Phil CPA, 94-1)

a)P70,000

b)P80,000

c)P30,000

d)P40,000

42.Under the following cases, benefit to the creditor are presumed except:

a)After payment, the 3rdperson acquires the creditor's right

b)Through the creditor's conduct, the debtor has been led to believe that the 3rdperson had authority to receive payment.

c)The creditor ratifies the payment to the 3rdperson

d)Payment made to 3rdperson in possession of the instrument evidencing the credit.

43.Statement 1: Payment shall be made in the place designated in the obligation

Statement 2: If the thing is determinate things, place of payment shall be the domicile of the debtor.

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

b)Both statements are false.

c)First statement is true; second statement is false.

d)Both statements are true.

44.Statement 1. A third person who has an interest in the fulfillment of the obligation can compel the creditor to accept his payment.

Statement 2. D owes C P20,000.00 to secure the payment of which D pledged a diamond ring. Subsequently, this ring was voluntarily returned to D by C. The obligation of D to pay C P20,000. is impliedly condoned and therefore extinguished.

a)Both are true

b)No. 1 is true; No. 2 is false

c)No. 1 is false; No. 2 is true

d)Both are false

45.Statement 1: Fulfillment of suspensive condition extinguished obligation.

Statement 2: The general rule is that the debtor can exempt himself from the performance of the obligation by paying the penalty.

a)Both statements are true.

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

c)First statement is true; second statement is false.

d)Both statements are false.

46.Statement 1: Statement 1: The creditor can be compelled to accept payment by a third person even against the will of the creditor.

Statement 2: Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires the debtor's consent

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

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

c)Both statements are false.

d)Both statements are true.

47.It is the act of depositing the thing or amount due with the proper court.

a)Consignation

b)Depositum

c)Compensation

d)Tender of payment

48.Statement 1: Consignation may be judicial or extrajudicial.

Statement 2: Tender of payment is an act on the part of the active subject of offering to the passive subject the thing or amount due.

Statement 3: Tender of payment alone in some instance extinguished obligation.

Statement 4: Consignation alone in some instance extinguished obligation.

a)All statements are true

b)Only one statement is true

c)Two statements are true

d)Three statements are true

49.Shirley agreed to sell to Baby a Honda car with plate No. 98126 with a value of P500,000. If the Honda car delivered to Baby by Shirley is owned by Carlito.

a)The payment is not valid because Shirley has no capacity to alienate the Honda car with plate no. 98126.

b)The payment is not valid because Shirley has no free disposal of the Honda car with plate no. 98126.

c)The payment is valid in so far as baby is concerned without prejudice to the right of Carlito to recover the equivalent value of P500,000.

d)The payment is valid although Shirley has no free disposal of the Honda car with plate no. 98126 but Shirley is required to pay Carlito the amount of P500,000.

50.Check shall produce the effect of payment:

I.When a check has been cleared and credited to creditor's account.

II.When the creditor accepts the check as payment.

III.When the check has been encashed

IV.When through the fault of the creditor the check has been impaired.

a)I, III and IV

b)I, II and IV

c)All of them

d)III and IV