LAW ON OBLIGATIONS AND CONTRACTS

1. Obligations arising from the same cause and where the parties and creditors and debtors of each other.

a.Reciprocal

b.Commutative

c.Unilateral

d.Executory

2. S promised to deliver a pair of shoes to B, through LBC, on September 10, 2020. On the other hand, B promised to pay the purchase price of the shoes to S, through Cebuana, on September 11, 2020. S delivered the shoes on September 10, 2020, but B did not pay on September 11, 2020.

a.S can rescind the sale and demand the return of the shoes.

b.S can no longer cancel the sale but he can still demand for the payment of the shoes plus damages.

c.S cannot rescind the sale because B is entitled to a 5-day grace period.

d.None of these

3. Statement 1(S1). If both parties breached their obligations the first infractor's liability shall be equitably tempered by the court. (S2). If it cannot be determined who first violated the contract, the same is deemed extinguished.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

4. When a thing disappears and it is unknown whether or not it still exists but can no longer be recovered.

a.Physical Loss

b.Legal loss

c.Factual loss

d.Civil loss

5. S1. During the pendency of a suspensive condition the thing is lost due to the debtor's fault, he shall pay damages. S2. If the loss is without the debtor's fault, he shall replace it.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

6. If during the pendency of a suspensive condition the thing was damaged due to debtor's fault, the creditor may rescind the obligation and claim damages. If it is damaged without the debtor's fault, the obligation is extinguished.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

7. D obliged himself to deliver to C his horse named "Red" if C will pass Obblicon this semester. On September 15, 2020, D put braces on Red to improve its teeth and spent P20,000 for it.

a.If C passed Oblicon, then D must deliver Red but he has the right of usufruct.

b.If C passed Oblicon, then D must deliver Red but must reimbursed P20,000.

c.If C passed Oblicon, then D must deliver Red but subject to his right of ownership of the horse.

d.If C passed Oblicon D must deliver Red but he can remove his braces.

8. D hired the services of Tigasin Construction (TC) to construct his 10-storey-building for P10,000,000. When the project is 50% complete D ordered TC to stop the construction without any valid reason.

a.TC is entitled to P5,000,000 because the building was only half erected.

b.TC is entitled to P10,000,000 as if it was able to fully erect the building.

c.TC is not entitled to paid because the building was not finished.

d.TC is not entitled to be paid because D has the right to stop the construction anytime.

9. D promised to treat C to Jollibee if he will pass Oblicon this semester. If C dropped Olicon on September 12, 2020, then

a.D's obligation is deemed extinguished as of the end of this semester.

b.D's obligation is deemed extinguished as of September 12, 2020.

c.D's obligation is deemed extinguished as soon as he is notified by C that he dropped Oblicon already.

d.D's obligation is deemed extinguished as of the end of the school year.

10. D promised to treat C to Jollibee if he will not play the online game Mobile Legends (ML) this semester. IF ML is revamped and removed and internet access permanently blocked on September 12, 2020, then

a.D's obligation arises at the end of this semester.

b.D's obligation arises on September 12, 2020.

c.D's obligation arises at the end of the year.

d.D's obligation arises as soon as all the comrades-in-arms accepted ML's closure.

11. X is a passenger of a jeep owned by O and being driven by D. The jeep was bumped by a taxi owned by TP and being driven by A. As a result X suffered injuries and lost all his teeth. Investigations disclosed that driver A was a fault. Which is correct?

a.X may sue O for breach of contract of carriage.

b.X may sue TP for Culpa Aquiliana

c.X may sue A for culpa criminal

d.If X sues O for breach of contract, then O may allege that A is the proximate cause of the accident.

12. The following are the remedies of the creditor to pursue against the debtor, excetpt:

a.Levy properties the debtor owns and possesses.

b.Exercise all the rights and bring all the actions of the debtor (accion subrogatoria)

c.Impugn the acts which the debtor may have done to defraud his creditors (accion pauliana)

d.Compel the debtor to work for him.

13. The following are requisites of negotiorum gestio, except:

a.There must be an abandoned or neglected property or business.

b.Someone voluntary takes charge of the abandoned business or property.

c.The owner must consent to the management of his business or property of someone.

d.The owner has the obligation to reimburse the expenses of the person who takes charge of his business and property.

14. Which of the following statements is correct?

a.Negligence signifies the idea of delay in the fulfillment of an obligation.

b.Delay or default means the failure to perform the obligation on the date agreed upon by the parties.

c.Incidental fraud is committed in the performance of an obligation.

d.Proper diligence of a good father of a family means extra-ordinary diligence.

15. Which of the following statements is correct?

a.Solutio indebiti arises from contract.

b.In civil obligation, the fulfillment of the obligation depends solely on the conscience of the person.

c.A natural obligation cannot be enforced in a court of justice.

d.An obligation to pay can arise from certain lawful, voluntary and unilateral act which did not benefited anyone or which did not cause damage to another person.

16. Which of the following statements is correct?

a.Unless the law or stipulation of the parties requires another standard of care, the debtor is obliged to observe the diligence of a good father of a family.

b.A person obliged to give something is also obliged to take care it with extraordinary diligence, unless the law or stipulation of the parties requires a different degree of care.

c.The diligence of a good father of a family is the fixed degree or standard of care required in circumstances.

d.If "A" promised to deliver to "B" any car, he has the obligation to preserve his car with due care.

17. Which of the following statements is not correct?

a.There is no delay in an obligation not to do something.

b.When the debtor is guilty of fraud in fulfilling his obligation the creditor can demand payment of damages and interest in addition to the penalty.

c.Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for the future fraud is void.

d.Responsibility arising from negligence or culpa in the performance of an obligation is demandable. Culpa aquiliana is that fault or negligence which results from breach of contract.

18.D bound himself to deliver a Sony LED TV with Serial No. WERT-35 to C and to repair C's Washing machine. D failed to perform both.

a.C can compel D to deliver the TV but not to repair the washing machine.

b.C can compel D to repair the washing machine but not to deliver the TV.

c.C can compel D to perform both,

d.C cannot compel D to perform both.

19. D is supposed to deliver a horse named "Red" to C on October 10, 2019. On due date D did not deliver the horse despite C's demand. The following day Red was struck by lightning and died. Is D still obliged to C?

a.No, his obligation is extinguished due to a fortuitous event.

b.Yes, because D is already in default when Red perished,

c.Yes, D must give C another horse of the same kind.

d.No, because the horse was at fault.

20. Distan Singh received an Air21 packaged. When he opened the package he realized that it is actually for his roommate and namesake Magic Singh. Distan Singh's obligation to give the package to Magic Singh arises from:

a.Law

b.Contracts

c.Mora Accepiendi

d.Solutio Indebiti

21. The debtor shall not be responsible for unforeseeable or inevitable events unless:

a.He is already in default.

b.When the nature of his obligation requires he must assume the risk.

c.When he expressly agreed to be liable even in cases of fortuitous events.

d.All of these.

22. No demand is needed to place the debtor in default when:

a.Time is of the essence.

b.Demand is already useless such as when debtor made an obligation no longer doable.

c.There is an automatic default clause if debt is not paid on time.

d.All of these.

23. The fundamental and highest law of the country.

a.Civil Code

b.Good Conduct Time Allowances

c.Constitution

d.Defense of the Ancient

24. Which of the following is not a characteristics of law?

a.Rule of conduct

b.Voluntary and permissive

c.Promulgated by legitimate authority

d.Of common observance and benefit

25. The branch of law that treats persons and family relations of an individual, his property and successional rights, and the effects of his obligations and contracts.

a.Public Law

b.Civil Law

c.Private Law

d.Constitutional Law

26. Source of law that pertains to the habits and practices that became binding rules of conduct through long uninterrupted usage.

a.Jurisprudence

b.Legislation

c.Custom

d.Morals

27. Which has a binding force in law?

a.Equity

b.Legislation

c.Custom

d.Morals

28. Obligation may arise from any of the following except:

a.Contracts

b.Quisi-contracts

c.Law

d.Prescription

29. Which of the following is not an essential element of an obligation?

a.Active and passive subjects

b.Form and style of the obligation

c.Prestation

d.Juridical or legal tie

30. When a party caused damage to another due to negligence in performing his contractual obligation, the liability for damages is based on:

a.Culpa Criminal

b.Mea Culpa

c.Culpa Contractual

d.Culpa Aquiliana

31. They are lawful, unilateral, and voluntary acts based on the principle that no one shall be enriched at the expense of another.

a.Compensatio Morae

b.Quasi-contracts

c.Culpa Contractual

d.Sollutio Indebiti

32.The following are sources of obligations derived from law, except:

a.Quisi-contracts

b.Delicts

c.Contracts

d.Quisi-delicts

33. Law that regulates of the relationship of the state and its people.

a.Conflict of the Laws

b.Public Law

c.Election Law

d.Political Law

34. A right enforceable against the whole world.

a.Real Right

b.Personal Right

c.Inchoate Right

d.Keep Right

35. Aileen is obliged to give Brenda 10kilos of sugar. Which of the following is not correct?

a.Brenda can demand that Aileen obtain that sugar and deliver it to her.

b.Brenda can just buy 10kilos of sugar and charge the expenses to Aileen.

c.Aileen can insist on just paying Brenda damages or the monetary value of the sugar.

d.Brenda may require another person to deliver the sugar and charge the expenses to Aileen.

36. S1. If a person obliged to do something fails to do it, the same shall be executed at his cost. S2. Those who in the performance of their obligations are guilty of fraud, negligence, or delay and those who in any manner contravene the tenor thereof, are liable for damages.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

37. S1. The receipt of a later installment of a debt without reservation as to prior installments gives rise to a conclusive presumption that the prior installments have already been paid. S2. If a taxpayer pays his income tax liability for 2020, the presumption is that the tax liability for 2019 has already been paid.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

38. Which is not correct regarding the creditor's right to the fruits/income of the principal subject?

a.If the obligation is subject to a suspensive condition, fruits/income arising before the happening of the condition belong to the creditor.

b.If the obligation is subject to a resolutory condition, fruits/income arising before the happening of the condition do not belong to the creditor.

c.If there is no term or condition for its fulfillment, the fruits/income should be delivered from the perfection of the contract or creation of the obligation.

d.If the obligation arises from a contract of sale, the vendor has a right to the fruits of the thing from the time the obligation to deliver the principal objects arises.

39. A obtained a loan from Bank. The loan is covered by several promissory notes. As a security for the loan A mortgaged his growing crops. The crops were subsequently destroyed by a typhoon. Is A still liable to pay the loan despite the destruction of his crops by a fortuitous event? Answer1- Yes, because A's obligation to pay is a generic real obligation. Answer 2- No, because the obligation is to deliver determinate things, the standing crops.

a.Both answers are correct.

b.First answer is correct; second answer is wrong.

c.First answer is wrong; second answer is correct.

d.Both answers are wrong.

40. S1. Prestation is the object or subject matter of the obligation. S2. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

41. S1. Without demand from the creditor, the debtor does not incur delay even if he fails to perform his obligation on time. S2. A person is obliged to deliver a determinate thing including its accessions and accessories even if these were not mentioned in the agreement.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

42. S1. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. S2. No person shall be responsible for those events which could not be foreseen or which, though foreseen were inevitable.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

43. S1. All rights acquired in virtue of an obligation are transmissible in the absence of any law or stipulation to the contrary. S2. Responsibility arising from negligence or culpa in the performance of an obligation is demandable.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

44. S1. When the debtor is guilty of fraud in the fulfillment of an obligation, the creditor can demand payment of damages. S2. Mora is a term used to denote delay or default in the performance or fulfillment of an obligation.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

45. S1. Loss of a generic thing, which is the object of the obligation, releases the debtor from the obligation, releases the debtor from the obligation. S2. Civil fruits are those produced by lands of any kind through cultivation.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

46. S1. A Quisi-contract does not require the consent of the contracting parties. S2. In civil obligation, the fulfilment of the obligation depends solely on the conscience of the person.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

47. S1. Every person obliged to give something is also obliged to take care of with the proper diligence of a good father of a family. S2. As a rule, the creditor has a right to the fruits of the thing from the time of obligation to deliver the principal object arises.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

48. S1. Every person obliged to give something is also obliged to take care of with the proper diligence of a good father of a family. S2. As a rule, the creditor has a right to the fruits of the thing from the time the obligation to deliver the principal objects arises.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

49. Negligence in the performance of a spontaneous valid act that caused injury to a third person is called culpa contractual. S2. One factor to be considered in negligence is the negligence is the circumstance of time.

a.Both statements are true

b.First statement is true, second statement is false

c.First statement is false, second statement is true

d.Both statement is false

50. Archon Construction Corp. (ACC)installed China-made windmill systems for the Bangui Windmills, Inc. (BWI) in Ilocos Norte. The consideration is P5,000,000 with one-year guarantee. The windmill systems collapsed after being hit by a strong wind. Is ACC exempt from liability due to a fortuitous event?

a.Yes, because the subject matter of the agreement was lost due to a fortuitous event.

b.No, because the subject matter of the agreement is a generic object which will not be lost due to a fortuitous event.

c.No, because the strong wind cannot be considered as a fortuitous event since it is an ordinary occurrence in a place where windmills are constructed.

d.No, because the windmills are China-made, hence, are expected to break easily.