BUSINESS LAW TAXATION REVIEWER 2015

BUSINESS LAW TAXATION REVIEWER 2015

BUSINESS LAW TAXATION REVIEWER

D 1. This source of obligations which is a rule of conduct, just and obligatory, promulgated by legitimate
authorities for common good, bene t and observance. a. contract b. Quasi-contracts c. Delicts d. aw! ".
! juridical necessity to give, to do or notto do. a. #ivil $bligations b. %atural $bligation c. &oral $bligation
D. 'ocial $bligation! (. They give right of action to compel their performance. a. #ivil $bligation b. moral
$bligation c. %atural $bligation d. 'ocial $bligations! ). The oblige has a right to enforce the obligation
against the obligor in a court of law. a. #ivil $bligation b. moral $bligations #. %atural $bligations D. 'ocial
$bligations#. *. This is based on e+uity and justice. a. #ivil $bligations b. &oral $bligations c. %atural
$bligations d. 'ocial obligations . The person is whose favor the obligation is constituted a. $bligor b.
$bligee c. assive 'ubject d. debtor! /. 'ynonymous to oblige 1. #reditor ". !ctive 'ubject (. Debtor ).
assive 'ubject a. 1 and " b. 1 and ) c. " and ( d. 1 and ) 0. The person who has the duty of giving, doing
or not doing. a. $bligee b. $bligor c. !ctive 'ubject d. #reditorD . 'ynonymous to obligor 1. #reditor ".
!ctive 'ubject (. Debtor ). assive 'ubject a. 1 and " b. 1 and ) c. " and ( d. ( and )! 12. The object or subject
matter of the obligation a. prestation b. 3inculum c. !ctive subject d. assive 'ubjectD 11. The e4cient
cause or juridical tie why the obligation e5ists. a. !ctive 'ubject b. assive 'ubject c. restation d.
3iculum 1". The duty not to recover what has voluntarily been paid although payment was no longer
re+uired a. civil $bligation b. %atural $bligation c. moral $bligation d. juridical $bligation! 1(. The
following are sources of obligations derived from law, e5cept a. #ontracts b. Quasi- #ontract c. Delicts d.
Quasi 6 delicts 1). #annot be enforced by court action and depend e5clusively upon the good
conscience of the debtor a. #ivil $bligation b. %atural $bligation #. &oral obligation d. 'ocial $bligationD
1*. ! owes 1,222 !, 7nowing that the debt has prescribed nevertheless, still pays . #an ! recover what
he voluntarily paid8 9irst answer: ;es, because has no to demand the payment e<ected by !'econd
answer: %o, the payment e5tinguished the natural obligationa. both answers are correct c. $nly the rst
is correctb. both answers are

! 1 . The duty to pay ta5es and to support one=s family are obligations arising from a. aw b. #ontracts
c. Quasi 6 #ontractsd. Delicts 1/. The obligations of husband and wife torender annual help and
support arises from a. #ontract b. aw c. Quasi 6 contract d. Quasi 6 Delict . 10. ! supports , a minor
because =s father refuses to support . The father is obliged to reimburse !. the source of obligation is
a. #ontract b. Quasi 6 #ontract c. Delict d. Quasi 6 Delict 1 . ! juridical relation resulting from a lawful,
voluntary, and unilateral act and which has for its purpose the payment of indemnity to the end that no
one shall be unjustly enriched or bene ted at the e5penseof another !. #ontract b. Quasi 6 #ontract c.
delict d. Quasi6 delict# "2. >hen a person voluntarily ta7es charge of another=s abandoned business or
property without the owner=s authority wherereimbursement must be made for necessary and useful
e5penses. a. Quasi 6 #ontract b. Quasi 6 delict c. %egotiorum gestio d. 'olutio ?ndebtiD "1. >hen
something is received when there is no right to demand it, and it was unduly delivered thru mista7e, the
recipient has the duty to return it a. Quasi 6 contract b. Quasi delict c. %egotiorum gestio d. 'olutio
?ndebtiD "". ! +uasi contract is an implied contract ! defendant who is ac+uitted in a criminal case is no
longer liable civilly a. true, true b. true, false c. false, true d.false, false "(. Tort or culpa a+uiliana is a.
Quasi 6 contract b. Quasi 6 delict c. %egotiorum gestio d. 'olutio indebti "). ! fault or ast or omission of
care which causes damage to another, there being no pre-e5isting contractual relations between the
parties a. Quasi 6 contract b. Quasi 6 delict c. %egotiorum gestio d. 'olutio indebti "*. $mission of the
diligence which is re+uired by the circumstances of person, place and time a. ignorance b. negligence c.
impotence d. ?nsanityD " . @nless the law or the stipulation of the parties re+uire another standard of
care, every person obliged to give something is also obliged to ta7e care of it with the properdiligencea.
$bserving utmost care c. $f a father of a good familyb. $bserving e5traordinary care d. $bserving
ordinary diligence! "/. $rdinary diligence is a. Diligence of a good father of a family c. Diligence re+uired
by lawb. e5traordinary diligence d. Diligence of a father of a good familyD "0. The creditor has a right to
the fruits of the thing a. 9rom the time the obligation to deliverit arises c. 9rom the time there is
meeting of the minds b. 9rom the time the fruits have been delivered d. 9rom the perfection of the
contract! " . 9rom the time the fruits have been delivered, the creditor shall ac+uire a. Aeal right b.
personal Aight c. moral right d. inchoate right! (2. ?f ! sells to a fountain pen, the giving by ! to of the
fountain pen is a. !ctual tradition b. #onstructive delivery c. 'ymbolical tradition d. Traditio longa-manu

?tems (1-(* ! 7ind of constructive delivery whereby:! (1. Thre is delivery when the 7eys of a warehouse
are given a. tradition simbolica c. tradition brevi-manu b. Traditio longa-manu d. Traditio brevi-manu
(". There is delivery by mere consent or the pointing out of the best a. Traditiosimbolic+a c. Traditio
brevi manu b. Traditio longa- manu d. Traditio constitutom pessessorium# ((. ! possessor of athing not as
an owner, becomes the possessor as owner a. Traditio simbolic+a c. Traditio brevi manu b. Traditio
longa- manu d. Traditio constitutom pessessoriumD (). ! possessor of a thing as an owner retains
possession no longer as an owner, but income other capacity a. Traditio simbolic+a c. Traditio brevi
manu b. Traditio longa- manu d. Traditio constitutom pessessorium# (*. The opposite of brevi 6 manu a.
onga 6 manu c. #onstitution possessorium b. 'imbolica d. Quasi 6 tradition ( . ?f a thing is capable of
particular designation a. Bneric b. 'peci c c. determine d. ?ndeterminable! (/. ?f a thing refers to a class
to a genus and cannot be pointed out with particularity a. Bneric b. 'peci c c. determine d.
?ndeterminable# (0. ! wife was about to deliver a child. Cer parents brought her to the hospital. >ho
should pay the e5penses for medical attendance8 !nswer 1- The husband, because it his duty to support
his wife and support includes medical attendance. !nswer "- The parents, because they were the persons
who brought the wifeE to the hospital a. oth answers are correct c. $nly the rst is correct b. oth
answers are not correct d. $nly the second is correctD ( . The following are 7inds of fruits of an
obligation, e5cept a. natural b. industrial c. civil d. penal! )2. 'pontaneous products of the soil and the
o<spring and other products of animals a. %atural b. ?ndustrial c. #ivil d. enal )1. roducts of the soil
through cultivation or intervention of human labora. %atural b. ?ndustrial c. #ivil d. enal# )". 9ruits
arising out of contracts 6 li7e rental payments a. natural b. industrial c. civil d. penal )(. >hen does the
obligation to deliver arise !nswer 1 6 ?f there is no term or condition, then from the perfection of the
contract !nswer " 6 ?f there is a term or condition, then from the moment the term arrive or the
condition happensa.True, true b. true, false c. 9alse, true d. false, false# )). ! is obliged to give , 12 7ilos
of sugar,which of the following is not correct a. can demand that ! obtain the sugar and deliver it to
him b. can just buy 12 7ilos of sugar and charge the e5penses to ! c. ! can insist on just paying
damages of the monetary value of the sugar d. ,ay re+uire another person to deliver the sugar and
charge the e5penses to !D )*. >hen demand by the creditor shall be necessary in order that delay may
e5ist a. >hen time is of the essence of the contract b. >hen demand would be useless

c. >hen the obligor has e5pressly ac7nowledged that he is in default d. >hen the obligor re+uested for
an e5tension of time ) . Debtor=s default in real obligation a. &ora accipiendi c. &ora solvendie5
persona b. mora solveudi e5-re d. #ompensatio morae# )/. Debtor=s default in real obligation a. &ora
accipiendi c. &ora solvendi e5 persona b. mora solveudi e5-re d. #ompensatio morae! )0. Default on the
part of the creditor a. &ora accipiendi c. &ora solvendie5 persona b. mora solveudi e5-re d.
#ompensatio moraeD ) . Default on the both part of the parties a. &ora accipiendi c. &ora solvendi e5
persona b. mora solveudi e5-re d. #ompensatio morae# *2. ! borrowed money from payable on Dec.
12, "22 . ?f ! failed to pay on due date, will ! be in delay8a. ;es, because there is stipulation as regards
the due dateb. ;es, if the obligation is in writingc. %o, because demand has not been made by d. %o, if !
has the money to pay ! *1. Damaged awarded for mental and physical anguish a. moral b. F5emplary c.
nominal d. temperate# *". Damages awarded to vindicate a right a. i+uidated b. !ctual c. %ominal d.
F5emplary! *(. Damages awarded to set an e5ample a. F5emplary b. i+uidated c. nominal d. moral# *).
>hen the e5act amount of damages cannot be ascertained a. F5emplary b. i+uidated c. Temperate d.
moral **. Damages predetermined beforehand a. Temperate b. i+uidated c. !ctual d. &oral# * . !
obliged himself to deliver to the following 1G "22/ 'ing-it ;amaha $rgan "G &alagona passenger
jeepney with engine %o. and chasis %o. 009irst statement 6 ?n case ! failed to deliver the "22/
yamaha $rgan, the court may compel ! to deliver the "22/ ;amaha $rgan plus damages 'econd 'tatement
6 ?n case ! failed to deliver the jeepney, the court may compel ! to deliver the jeepney plus damagesa.
True, true b. True, false c. 9alse, true d.false, false! */. ?. ?f a person obliged to do something fails to do
it, the same shall be e5ecuted at his cost ??. Those who in the performance of their obligation are guilty
of fraud, negligence, or delay and those who in any manner contravene the tenor thereof, are liable for
damages. a. True, true b. True, false c. 9alse, true d. 9alse, falseD *0. ?. Aesponsibility arising from fraud
is demandable in all obligations. !ny waiver of an action for fraud is void. ??. ?f the law or contract does
not state the diligence which is to be observed in the performance of an obligation, that which is
e5pected of a father of a good family shall be re+uireda. true, true b. true, false c. 9alse, true d. 9alse,
false * . ?. The recipient of a later installment of a debt without reservation as to prior installments
shall give rise to a rebuttable presumption that such installments have been paid. ??. ?f a ta5payer pays
his income ta5 liability for the correct year, there is a presumption that ta5

liability for the previous year has been paid. a. true, true b. true, false c. 9alse, true d. 9alse, falseD
2.>ith regard to the right as to the fruits of the thing, which is not correct8 a. ?f the obligation is subject
to a suspensive condition, the obligation to deliver arises from the moment the conditionhappens. b. ?f
the obligation is subject to a suspensive period, the obligation to deliver arises upon the e5piration of
the term or period. c. ?f there is no condition or term for its ful llment, the obligation to deliver arises
from the perfection of the contract or creation of the obligation. d. ?f the obligation arises from a
contract of sale, the vendor has right to the fruits of the thing from the time the obligation to deliver
arises. ! 1. ! is obliged to deliver his only car to on %ovember "2, "22/. ?f ! does not deliver, and on
%ovember "", "22/, a typhoon destroys the cara. ! is not liable because the obligation is e5tinguished b. !
is liable because he is delayc. ! and will divide the loss e+uallyd. !=s obligation is converted into a
monetaryobligation# ". ?. >hen what is to be delivered is a determinate thing, the creditor may compel
the debtor to ma7e the delivery and if the debtor refuses, the creditor may as7 that the obligation be
complied with at the e5pense of the debtor. ??. The obligation to give a determinate thing includes that
of delivering all its accession and accessories, even though they may not have been mentioned. a. true,
true b. True, false c. 9alse, true d.false, false! (. >hat is the basis of the liability of a school when a
student is stabbed inside the campus by a stranger in the school8 a. #ontracts b. Quasi- contracts c.
Delicts d. Quasi 6 delictsD ). The following e5pect one, are includedin civil liability. The e5ception is a.
restitution b. reparation c. ?ndemni cation d. starvation! *. The thing itself shall be restored, as a
rule a. restitution b. Aeparation c. ?ndemni cation d. starvation . The court determines the amount
of damage ta7ing into consideration the price of the thing and its sentimental value to the injured
persona. restitution b. Aeparation c. ?ndemni cation d. starvation# /. The conse+uential damages
su<ered by the injured person and those su<ered by his family or third person by reason of the act. a.
restitution b. Aeparation c. ?ndemni cation d. starvation 0. !ction to ?mpugn or rescind acts or
contracts done by the debtor to defraud the creditors a. !ccion reinvindicatoria b. !ccion aulina c. !ccion
'ubrogatoria d. !ccion Quanti6 minoris# . ! borrower agreed, that in case of non-payment of his debt,
to render services as a severant. >hich of the following is not correct8 a. ?f the services will be rendered
in satisfaction of the debt, the stipulation is valid. b. ?f the services will be for freeE, the stipulation is
void for being contrary to law and morals c. ?f the services will not be gratuitous, speci c performance
of the service will be the proper remedy in case of non 6 compliance. d. 'hould there be a valid
stipulation as regards the rendition of services, an action for damages should be brought in case of non-
compliance.

# /2. ! ordered , a 12 year old boy to climb a high and slippery mango tree with a promise to give him
part of the fruits was seriously injured when he fell while climbing the tree. ?s ! liable8!.9irst answer
%o, because no person shall be responsible for fortuitous events .'econd !nswer ;es, because !
wasnegligent in ma7ing the order without ta7ing due care to avoid a reasonable foreseeable injury to a.
true, true b. true, false c. 9alse, true d. 9alse, falseD /1. ! pays for =s transportation fare, without =s
7nowledge and later discovers that was entitled to half-fare. >hich is not correct8 a. ! can recover the
half- fare from D c. ! can recover H from and H from the carrier b. ! can recover the half-fare from the
carrier d. ! can recover half-fare from onlyD /". ! borrowed 122,222 from . the loan was secured by a
mortgage of !=s land in favor of . >ithout the 7nowledge of !, # paid the sum of 122,222 for !=s debt.
!s aresult, a. # may foreclose the mortgage on !=s land if ! cannot pay b. # cannot claim reimbursement
from ! in as much as the payment was made without the 7nowledge of ! c. # can recover the amount
from in case ! refuses to reimburse # d. The obligation of ! to was e5tinguished but ! should
reimburse # the amount of 122,222 because he was bene ted by the payment! /(. >hen the debtor of a
debtor is ordered not to pay the latter so that preference would be given to the latter=s creditor a.
garnishment b. interpleader c. ?njunction d. !ttachment /). ! obtained a loan from ban7. The loan
was embodied in several promissory notes. !s security the borrower e5ecuted a chattel mortgage on his
standing crops. 'aid crops were however subse+uently destroyed by typhoon AosingE. ?s ! still liable for
the loan despite the destruction of the crops by afortuitous event81

st

answer ;es, the obligation of ! was to deliver a generic thingImoney"

nd

answer %o, the obligation was to deliver determinate things 6 the standing cropsa. true, true b.true,
false c. 9alse, true d. 9alse, 9alse# /*. ! sold a half 6 interest in his speci c car to . ?t was agreed that
the price to be paid by would be used in installing a new engine on the car. ater, the car was
destroyed by a fortuitous event. ?s =s obligation to pay the price e5tinguished81

st

answer ;es, there is no more use of installing a new engine since the car has already been destroyed by
a fortuitous event. "

nd

answer %o, must still pay because his obligation to pay is generica. true, true b. true, 9alse c. 9alse,
true d. false, false / . ?. ! commits the crime of theft and is as7ed to return the car to its owner . ?f,
before the car is delivered to it is destroyed by a fortuitous event, ?s !=s liability e5tinguished8 using
above statement, ! had previously as7ed the ownerto accept the car, but the owner without
any justi able reason refuses to accept the car, and it is destroyed by a fortuitous events. ?s !=s liablilty
e5tinguished8 a. yes, yes b. no, ;es c. yes, no d. no , %o //. ?. There is no delay in an obligation not to
do something ??. 'olutio indebti and negotiorum gestio are implied contracts

a. true, true b. true, false c. 9alse, true d. 9alse, falseD /0. ?. #onsent of the parties is re+uired in
+uasi- contract ??. The creditor ac+uires real right over the thing from the time obligation to deliver
arises a. true, true b. true, false c. 9alse, true d.9alse, false# / . The creditor has a right to the fruits of
the thing from the time a. the thing is delivered c. The obligation to deliver the thing arises b. The fruits
are delivered d. The sale is perfectedD 02. The buyer has the right to the fruits of the thing from the
time a. the thing is delivered c. The obligation to deliver the thing arises b. the fruits are delivered d. The
sale is perfected01. >hich is not considered as +uasi 6 contract8 a. 'olution indebiti b. %egotiorum
gestio c. >hen the third person with the 7nowledgeof the debtor , pays the debtd. reimbursement due
the person who saved property during re or typhoon without the 7nowledge of the owner 0". %o
longer enforceable by court action but is binding on the party who oblige with it in conscience is a. #ivil
obligation c. moral $bligationb. %atural $bligation d. #onditional obligation! 0(. ?f ! pays a debt that has
prescribed: 1. %ot 7nowing it has prescribed, ! can recover the ground of undue payment ". Jnowing it
has prescribed, ! cannot recover for this would be a case of natural obligation a. both 1 K " are true c.
$nly " is true b. $nly 1 is true d. oth 1 K " are false# 0). $n Lune "), "22/, ! is obliged to give his speci c
car. There was no delivery until Lune (2 when the garage of the car collapseddue to heavy rain and
strong winds of typhoon ining, and the car was totally destroyed. ?s ! still liable8a.no, even if ! was in
default, he could plead impossibility of performanceb ;es, because the contract is perfectedc. %o,
because there was no demand by to deliver the card. yes, the obligation to deliver the car is changed
to pay the e+uivalent value because is in legal delay! 0*. This obligation is demandable at once when
ita. Cas a resolutory condition b. Cas a suspensive condition c. ?s with a term e5-die d. Cas a periodD 0 .
>hen the debtor binds himself to pay when his means permit him to do so, the obligation shall be
deemed to be with a a. resolutory period b. 'uspensive condition c. otestative condition d. period! 0/. !
promised to give his 3olvo car if passes the # ! board e5ams. ending the results of the e5ams the
car is destroyed by a fortuitous event without any fault on the part of !. !s a resulta. the obligation of ! is
e5tinguishedb. the obligation of ! is converted into monetary obligationc. The obligation of ! will be
e+uitably reducedd. ! will have to give ! another car of e+uivalent value! 00. ! period with a suspensive
e<ecta. ? will support you beginning Lanuary 1 of ne5t year c. ? will support you if ! dies of T b. ? will
support you until Lanuary 1 of ne5t year d. ? will support you if ! marries 0 . ! period with a
resolutory e<ect a. ? will support you beginning Lanuary 1 of ne5t year

c. ? will support you if ! dies b. ? will support you until ! dies d. ? will support you if ! dies of T ! (.
>henever in an obligation a period is designated, it is presumed to have been established for the bene t
a. of both the creditor and debtor c. of the debtor onlyb. $f the creditor only d. $f third personD ). This
is a valid obligation a. ! will give 122,222 if will 7ill # b. ! will give 1,222,222 if will agree to be
mistress of ! c. ! will give 12,222 if can ma7e #rise from the dead d. ! will give 1,222 if b will not
pose nudein a painting session! *. >here two or more prestations have been agreed upon but only one
is due, the obligation is a. !lternative b. facultative c. #onjoin d. 'olidary! . @sing the preceding
number, the right of choice, belongs a. To the debtor b. To the creditor c. to both debtor and creditor d.
To third person 0. ?. @sing the preceeding number, if objects nos. 1 and " were destroyed by a
fortuitous event and later object %o. ( is destroyed by !=s fault. ! would still be liable ??. @sing the
preceding number, if objects nos 1 and " were destroyed by !=s fault and later object no. ( is lost by a
fortuitous event. ! would still be liable a. true, true b. true, false c. 9alse, true d. false, falseD . ! is
obliged to give either objects %o.1 K %o. " or no. ( at =s option. efore communicated his choice to
!, object %o. 1 had been destroyed, thru !=s fault and object%o. " had been destroyed by a fortuitous
event. may a. Demand object %o. ( only as it is still available b. demand the price of object %o. 1 only
plus damages because it was destroyed by !=s fault c. demand the value of object %o. " as the right of
choice belongs to d. demand either object %o. ( or the price of object %o 1 plus damagesD 122. !ny of
the debtors is bound to render compliance of the entire obligationa. alternative b. facultative c. joint
d.'olidaryD 121. ?n a joint obligation, joint means any of the following, e5cept a. pro-rata b.
proportionate c. mancomunada simple d. ?ndividually K collectively 12". ?n facultative obligations, if
substitution has been made, which of the following is false8a. the obligation is e5tinguishedb. the loss of
the original prestation is immaterialc. The obligation is converted into a simple obligationd. The
obligation ceases to be facultative! 12(. @sing the preceding number, and the substitute is lost by a
fortuitous event, whichis true8a. the obligation is e5tinguishedb. the debtor is liable for damagesc. the
original prestation must be givend. The debtor must give another object whichis e+ually satisfactory
12). @sing the preceding number, but the substitute is lost due to debtor=s fault, which is true8a. the
obligation is e5tinguishedb. The debtor is liable for damagesc. the original prestation must be givend.
The debtor must give another object whichis e+ually satisfactoryD 12*. ?nstances where the law
imposes solidary liability, e5cepta. $bligations arising from tortb. $bligations of bailees in
commodatumc. liability of principals, accomplices and

accessories of a clonyd. liability of partners arising out of a contractD 12 . This will result to a solidary
liabilitya. vitiated consent on the part of one of the debtorsb. insolvency of one of the debtorsc. default
on the part of one of the debtorsd. +uasi 6 delict commited by one of the partners acting in the ordinary
course of business 12/. >here only one prestation has been agreed upon, but the obligor may render
another in substitution. The obligation isa. !lternative b. facultative c. #onjoint D. 'olidary# 120. >here
two or more prestations have been agreed upon, and all of them must be performed, the obligation isa.
!lternative b. facultative c. #onjoint D. 'olidary! 12 . ! and b are solidary debtors of # and D, solidary
creditors, to the amount of 1,222. # can demand a. 1,222 from ! or 1,222 from c. *22 from ! or
*22 from b. 1,222 from ! and 1,222 from d. *22 from ! and *22 from 112. ! and solidary
debtors of # and D, joint creditors, to the amount of 1,222 6 # can demand a. 1,222 from ! or 1,222
from c. *22 from ! and *22 from b. *22 from ! or *22 from d. "*2 from ! and "*2 from #
111. ! nad are joint debtors of # and D, solidary creditors to the amount of 1,222. # can demand a.
1,222 from ! or 1,222 from c. *22 from ! and *22 from b. *22 from ! or *22 *22 from d.
"*2 from ! and "*2 from # 11". ! nad are joint debtors of # and D, joint creditors, to the amount of
1,222. # can demand a. *22 from ! or *22 from c. "*2 from ! and "*2 from b. "*2 from ! or
"*2 from d. *22 from ! and *22 from D 11(. This is synonymous to joint obligation a. joint K
several b. ?n solidum c. ?ndividually K collectively d. &ancomunada 'impleD 11). This is synonymous to
solidary obligation a. ro-rata b. &ancomunada c. roportionate d. juntos o separadamente! 11*. !, b
and # are joint debtors of D for (,222. ?f ! is insolvent, how much should pay D8 a. 1,222 b. 1,*22 c.
",222 d. (,222 # 11 . ?n "22/, !, and # bound themselvesin solidum to give D ,222 subject to the
following conditions: ! will pay in "22/, b, if D passes the "220 # ! oard e5am and D will pay in "22 in
"22/, how much can D demand from c8a. ,222 b. ,222 b. (,222 d. *,222! 11/. !, and # are solidary
debtors of D for (,222. D remitted c=s share. ! therefore paid later ",222. ! can recover reimbursement
from in the amount of a. 1,222 b. 1,*22 c. *22 d. 2# 110. @sing the preceding number, if is
insolvent, ! can recover from # the amount of a. 1,222 b. 1,*22 c. *22 d. 2D 11 . !, b and # are
solidary debtors of D inthe amount of 1,222. D remitted the entire obligation when ! o<ered to pay. !
can demand reimbursement from in the amount of a. 1,222 b. *22 c. ((( d. 2 1"2. !, and # are
solidary debtors of D inthe amount of p(,222 but ! was incapacitated to give his consent as he was a
minor. ?f D sues , how much will be liable for8 a. (,222 b. ",222 c. 1,222 d. 2

! 1"". ! is indebted to solidary creditors , # and D for 2,222. >ithout the 7nowledge of and #, D
remitted the obligation of !, asa result,a. The obligation of ! to pay 2,222 is e5tinguished b. The
obligation is not e5tinguished becausethere is no consent from b and #c. the obligation is e5tinguished
only up to (2,222d. the obligations is e5tinguished up to 2,222D 1"). ! is obliged to give her college
ring.?f she fails to do so, she must give 12,222. This is a. !lternative obligation c. facultative
$bligation b. #onjoint $bligation d. $bligation with a penal clauseD 1"*. >here the penalty ta7es the
place of indemnity for the damages and for the payment of interest a. >here there is stipulation to the
e<ect that damages or interest may still be recovered, despite the presence of the penalty clause b.
when the debtor refuses to pay the penalty imposed in the obligation c. >hen the debtor is guilty of
fraud or dolo in the ful llment of the obligation d. >here there is breach of the obligations 1" . This is
an obligation with a resolutory conditiona. ?=ll give you 12,222 if you pass the "22 # ! board
e5aminationb. ?=ll give you may car now, but should you fail in any of your subjects, your ownership will
case and it will be mine aginc. ?=ll give you 12,222 on December (1, "22 d. ?=ll give you 12,222 if !
dies of T # 1"/. ?. ?f the condition is potestative on thepart of the debtor, the obligation is void ??. ?f
the condition, is potestative on the part of the creditor, the obligation is valid a. true, true b. True, 9alse
#. false, true D. 9alse, false# 1"0. ! owns a house rented by . ! sold the house to # where # agreed to
pay the balance of the purchase price as soon as leaves the premises. ?t was farther agreed that c will
ta7e care of seeing to it that vacates the house. >hich is correct a. The contract is void because it is
potestative on the part of # b. the contract is void because the consent of was not obtained c. the
contract is valid because the condition is mi5ed d. the contract is valid if is willing to vacate the
premises! 1" . ?. the condition that some event happens at a determinate time shall e5tinguish the
obligation as soon as the time e5pires or it has become indubitable that theevent will not ta7e place??.
The condition that some event will not happen at a determinable time shall render the obligation
e<ective from the moment thetime indicated has elapsed, or it has become evident the event cannot
occur a. true, true b. true, false #. false, true d.false, falseD 1(2. ?. ! father promised to give his son a car
if the son will marry this year. ?f by the end of the year, ?s already dead or the son has not married
, the obligation to give is e<ective and demandable ??. ! father promised to give his daughter a car if
the daughter will not marry her boyfriend earlier than December (1, "22 . ?f by December (1, "22 the
daughter has not yet married her boyfriend, or if prior thereto, her boyfriend has died, the obligation is
e5tinguished. a. true, true b. true, false c. false, true d. 9alse, true! 1(1. ?. obligations with a resolutory
periodta7e e<ect at once, but terminate upon arrival of the day certain. ??. $bligations with a resolutory
condition ta7e e<ect at once, but terminate upon happening of the condition. a. true, true b. true, false
c. false, true d. 9alse, true 1(". ! borrowed money from and pledged her ring as security. ?t was
agreed

that ! was to pay the money loaned with interest at the end of one year. efore the e5piration of the
one year perioda. ! may compel to accept her paymentb. ! may be allowed to pay , if consentsc. !
may compel to accept her payment because the period is deemed for the bene tof !d. may refuse
!=s payment as the period is demand for the bene t of # 1((. The debtor shall lose every right to ma7e
use of the period, e5cepta. >hen after the obligation has been contracted, he becomes insolvent, unless
he gives guaranty or security or security for the debt.b. >hen he does not furnish to the creditor the
guaranties or securities which he has promised c. >hen through fortuitous events or by his own acts the
guaranties or securities have been impaired, unless he immediately gives new ones e+ually
satisfactoryd. >hen the debtor violates any underta7ing in consideration of which the creditor agreed to
the period! 1( . The creditor is entitled to recover damages and interest in addition to penalty
stipulated a. >hen the debtor refused to pay the penalty b. >hen the debtor is guilty of fraud in the
ful llment of the obligationa. true, true b. true, false c. false, true d. 9alse, true 1(/. !ction where a
person in possession of certain property may bring an action against the conMicting claimants to compel
them to interplead and litigate their several claims among themselvesa. Barnishment b. interpleader c.
?njunction d. !ttachment# 1(0. ! judicial process by virtue of which a person is generally ordered to
refrain from doing something a. Barnishment b. interpleader c. ?njunction d. !ttachment! 1( . >here a
property is alienated to the creditor is satisfaction of a debt in moneya. Dation in payment b. payment
by cessionc. !pplication of payment d. #onsignation 1)2. >here a debtor transfers all his properties not
subject to e5ecution favor of his creditors so that the latter may sell them and thus apply the proceeds
to their credits. a. dation in payment b. #ession c. !pplication of payment d. #onsignation 1)2. The act
of o<ering the creditor what isdue him together with a demand that the creditor accept the same a.
!pplication of payment b. tender of payment c. Datio in 'olutum d. #ession 1)". The act of depositing
the thing due with the court or judicial authorities whenever the creditor cannot accept or refuses to
accept paymenta. Tender of payment b. #onsignation c. !pplication of payment d.datio in 'olutum! 1)(.
The meeting in one person of the +ualities of creditor and debtor with respect to the same obligation a.
#onfusion b. #ompensation c. %ovation d. #ondonation 1)). >hen two persons in their own right are
creditors and debtors of each other a. #onfusion b. #ompensation c. %ovation d. #ondonation# 1)*. This
is not necessary in order that compensation may prosper a. that the two debts are both due b. That the
two debts be li+uidated and demandable c. That there be a retention or controversy commenced by
third persons and communicated in due time to the debtord. both debts consists in a sum of money, or
if the things due are consumable, they be of the same 7ind and also of the same +uality if the later has
been stated.D 1) . #ompensation cannot ta7e place e5cept, a. >hen one debt arises from the obligations

of a depositaryb. >hen one debt arises from the obligationsof a bailee in commodatumc.>hen one debt
arises because of a claim for support due to gratuitous titled. >hen one debt arises from blan7 deposit#
1)/. The substitutions or change of an obligation by another which e5tinguishes or modi es the rsta.
#onfusion b. #ompensation c. %ovation d. #onsignation! 1)0. %ovation which changes the object or the
principal condition of the obligationa. Aeal b. personal c. mi5ed d. artial 1) . %ovation which changes
the parties tothe obligationa. Aeal b. personal c. mi5ed d. artial 1*2. F5promission, delegacion or
subrogating a third person in the right of the creditora. Aeal b. personal c. mi5ed d. artial# 1*1.
%ovation which changes the object and parties of the obligationa. Aeal b. personal c. mi5ed d. artial
1*". 'ubstitution of debtor where the initiative comes from a third person a. Delegacion b. F5promission
c. 'ubrogating d. %ovation! 1*(. 'ubstitution of debtor where the initiative comes from the debtor a.
Delegacion b. F5promission c. 'ubrogating d. %ovation# 1*). The transfer of a third person of all the
rights appertaining to the creditor a. Delegacion b. F5promission c. 'ubrogating d. %ovation! 1**. egal
subrogagtion is presumed in thefollowing. >hich is not correct8a. >hen a third person, not interested in
the obligation, pays will the approval of the creditorb. >hen a creditor pays another creditor whois
preferred, even without the debtor=s 7nowledge c. >hen a third person, not interested in the obligation,
pays with the e5press or tacit approval of the debtord. >hen , even without the 7nowledge of the debto,
a person interested in the ful llment of the obligation pays, without prejudice to the e<ects of confusion
as to the latter=s share! 1* . ?. roof of actual damages su<ered bythe creditor is not necessary in order
that thepenalty previously agreed upon may be demanded??. roof of actual damages su<ered by the
creditor is not necessary in an obligation witha penal clause.a. true, true b. true, false c. false, true
d.9alse, true# 1*/. ?. >hoever pays for another may demand from the debtor what he has paid, e5cept
that if he paid without the 7nowledge or against the will of the debtor he cannot recover anything??.
The debtor of a thing cannot compel the creditor to receive a di<erent one, although the latter may be
of the same value as or more valuable than that which is duea. true, true b. true, false c. false, true
d.9alse, true# 1*0. ! owes two debts, both of which arealready due. The rst debt is secured by a
mortgage the second is not. ! tells that payment he is now ma7ing should be appliedto the second
debt instead of the rst, which is correct8 a. may refuse such application on the ground that the rst
debt is more burdensome to the debtorb. may refuse such application because thepayment shall be
applied proportionatelyc. cannot refuse the application because the preference of the debtor must be
followedD 1 2. ! owes 12,222 with # as a guarantor. ! paid ),222 leaving ,222 unpaid balance. D
without the 7nowledge of !, paid the sum of 12,222. !s a result of this paymenta. The obligation is not
e5tinguished as the payment is without the consent of !b. the obligation is e5tinguished but D cannot

recover from ! instead he should go after theguarantorc. The obligation is e5tinguished but D can
recover only ,222 from ! and if ! cannot pay, D should demand payment from #D. The obligation is
e5tinguished but D cannot recover 12,222 but only ,222 from! and if ! cannot pay, he cannot go after
#.! 1 1. ! owes 12,222 # in behalf of !, pays 12,222 against the consent of ! although # has
previously told ! that he N did not intend to be reimbursed. %evertheless, accepts the payment by #
inbehalf of !.1

st

statement !=s obligation towards is e5tinguished"

nd

statement # may still recover from ! because ! did not consent to what the law deems a donation on the
part of # in favor of !a. true, true b. true, false c. false, true d.9alse, true# 1 ". ! owes two debts, both
of which arealready due. The rst debt is secured by a mortgage while the second is not. ! tells that
the payment he is now ma7ing should be applied to the second debt, instead of the rst.1

st

statement may refuse to accept such application on the fround that the rst debt is more
burdensome to the debtor"

nd

statement cannot refuse such application because the preference of the debtor must be followed.a.
true, true b. true, false c. false, true d. 9alse, true 1 (. ?. ! owes 12,222, guaranteed by #. assigns
his credit to O. O assigns the credit to ;. ; assigns the credit to !. !=s obligation is e5tinguished and # is
released from his obligations as guarantor. ??. ! owes 12,222 guaranteed by #. assigns his credit to
O. O assigns his credit to ;. y assigns his credit to #, the guarantor. !=s obligation is e5tinguished and # is
released from his obligation as guarantor.a. true, true b. true, false c. false, true d. 9alse, true 1 ). ! has
two creditors, b and #. is a mortgage creditor for "2,222 and # is an ordinary creditor for 12,222. #
paid !=s debtof "2,222 to 1

st

statement ?f #=s payment is with !=s 7nowledge, # will be subrogated in the rightsof "

nd

statement if #=s payment is without !=s 7nowledge, # will not be subrogated in the rights of a. true,
true b. true, false c. false, true d. 9alse, trueD 1 *. ! nad b are jointly liable to deliver a particular car
valued at p"22,22 to # on Luly 1, "22/. >hich is correct8a. the prestation is indivisible ma7ing the liability
of ! and solidaryb. if on Luly 1, "22/, ! is willing to deliver thecar but is not, # may enforce the
obligationagainst !c. ! is liable for a proportionate part of the obligation and will be liable also for
damagesif b is not ready to comply with his obligation,even if a is willing to deliver the card. the liability
of ! and is joint and that damages may be assessed only against the debtor who violated the
obligationD 1 . ! e5ecutes in favor of a promissory note for 1,222,222 payable after two years,
secured by a mortgage on a building valued at ",222,222. $ne year after the e5ecution of the note, the
mortgaged building was totally burned. #an demand from ! the payment of the value of the note8a.
yes, if ! is willing to pay . %o, ?f ! refuses to pay c. yes, even if ! gives another security whichis e+ually
satisfactoryd. yes, unless ! gives another security which is e+ually satisfactory# 1 0. ! obliged himself to
pay 12,222 as soon as possible. Three months later, demanded payment from ! but the latter
refuses to pay. cana. 9ile an action in court compelling ! to pay the obligationb. #onsider the obligation
void because the phrase as soon as possible is indeterminablec. Bo to court so that the court will 5 the
date of paymentd. !s7 for damages because three months is considered too long for as soon as
possibleE

! 1 . ! owes 12,222 payable on Lune (2,"22/ and as a security. ! pledged his ring to . %ecessarily the
ring was delivered to . $n due date, the ring is found in the possession of ! when it should be in the
possession of . !s a result, one of the following is not correct. a. !=s obligation to b is e5tinguished b. !=s
obligation to is e5tinguished c. The contract of pledge is e5tinguishedd. The contract of pledge is
e5tinguished but not the principal obligation 1/1. ?. when the ful llment of the suspensive or
resolutory condition depends upon the sole will of the debtor, the conditional obligation shall be
void. ??. ?f the debt produces interest, payment of the interest shall not be deemed to have been made
until the principal have been covered or paid.a. true, true b. true, false c. false, true d. 9alse, true! 1/". ?.
#ondonation or remission is generally gratuitous ??. roof of actual damages su<ered by the creditor is
not necessary in order that the penalty in an obligation with a penal clause may be demandeda. true,
true b. true, false c. false, true d. 9alse, true# 1/(. ?. in delegacion, the insolvency of thenew debtor will
not receive the original debtor=s obligation ??. ?n e5promission the insolvency of the new debt may at
times revive the original debtor=s obligation a. true, true b. true, false c. false, true d. 9alse, true! 1/). ?.
! 'olidary creditor cannot assign his rights without the consent of the other creditors. ??. ayment of the
debtor=s obligation may be made by a third person even withoutthe 7nowledge consent of the
debtor a. true, true b. true, false c. false, true d. 9alse, true 1/*. ?. 'olidary may e5ist although the
debtors and the creditors may not be bound in the same manner and the same periods and
conditions??. ! solidary debtor is always entitled to reimbursement from his co-debtors if he pays for the
obligationsa. true, true b. true, false c. false, true d. 9alse, true! 1/ . ?. payment made in good faith to
any person in possession of the credit shall e5tinguish the debtors obligation??. >hen the debtor is guilty
of fraud in the ful llment of an obligation, a creditor can demand payment of damages and interest
inaddition to the penalty.a. true, true b. true, false c. false, true d. 9alse, trueD 1//. ! obliges himself to
give a speci c car on Lan. / ,"22/. $n Lan /, "22/, # burnedthe car which ! promised to deliver to ,
which is correct8a. !=s obligation to is converted to monetary obligationb. ! should le an action
against # for the value of the car plus damagesc. can le an action against ! for the value of the car plus
damagesd. can le an action against # for the valueof the car plus damages# 1/0. ! owes 12,222 due
on Lan. / and guaranteed by #. owes ! 0,222 due on Lan. /. $n the due date, ! is insolvent. Cow much
is #=s liability8 a. 12,222 b. 0,222 c. ",222 d. 2D 102. ?n tender of payment and consignation, if after
consignation is made, the creditor allows the debtor to withdraw the thing deposited in court, which of
the following statements is not correct8 a. Buarantors are released from the obligation unless they
consented b. 'ureties are released from the obligation unless they consented c. The obligation is
e5tinguishedD 101. ! owes 122,222 payable on or before Lan. "2 ,"22/ while owes ! 122,222
payable on or before Lan. (2, "22/ can set up compensation on Lan. "2, "22/ and this is called a. egal
b. artial

c. judicial or set o<E d. 9acultativeD 10". >hich of the following is an obligationwith a period for the
bene t of the debtor8a. !n obligation payable little by littleb. !n obligation payable when the debtor=s
means permit him to do soc. !n obligation payable within 12 months ondemandd. !n obligation payable
on or before Dec. (1, "22/ 10(. roof of pecuniary loss is necessary for the award of a. moral damages
b. !ctual damages c. F5emplary damages d. temperate damages! 10). The indemnity which the law gives
to the injured party for the breach of a contract is a. damages b. damage c. ?njury d. oss 10*. The loss
su<ered by one person on hisproperty is a. Damages b. damage c. injury ! 10 . %ot a re+uisite of cession
in paymenta. $ne debtor and one creditor c. more than one debt b. #omplete or partial insolvency d.
!bandonment of all debtor=s property not e5empt from e5ecution# 10/. ?f the obligation is payable in
foreign currency, >hich is correct8a. The obligation is voidb. The obligation is valid, but the stipulation is
voidc. The creditor can compel the debtor to pay in foreign currency as per agreementd. the stipulation
and the obligation are voidD 100. >ho is liable for the loss of the subject matter by fortuitous event8a.
creditor b. Debtor c. oth of them d. %one of them! 10 . ?=ll give you my car one year after O dies. The
obligation is a. 3alid, because death is sure to come c. 3oid, the time when death will occur is not
certain b. 3alid. ut the condition will be disregarded d. void, 7illing a person is contrary to law.# 1 2.
>hoever pays for another without the7nowledge or against the will of the debtora. &ay demand from
the debtor what he has paidb. may not recover anything from the debtorc. &ay recover only insofar as
the payment has been bene cial to the debtord. &ay recover from the debtor what he has paid plus
damagesD 1 1. ! owes 12,222. ater ! paid /,222 leaving a balance of (,222. #, a suitor of ! and
intending to surprise !, paid the sum of 12,222 thin7ing that ! still owed that amount. # did this a. #
#an recover 12,222 from ! c. # can recover 12,222 from b. # cannot recover anything from ! d. # can
recover (,222 from !# 1 ". The act of putting somebody onto the shoes of the creditor enabling him to
e5ercise all the rights and actions that could have been e5ercised by the lattera. !gency b. artnership c.
'ubrogation d. %ovation# 1 (. ! borrowed 12,222 from . the loan was secured by a mortgage of !=s
land in favor of . >ithout the 7nowledge of !, # paid the sum of 12,222 for !=s debt. ! bene ted to the
amount of 12,222. >hich isnot correct8a. # can recover the whole amount of 12,222 from ab. if !
cannot pay , # cannot foreclose the mortgage inasmuch as # paid without the 7nowledge of ! c. # may
either demand recovery of 12,222 from ! or to foreclose the mortgaged. ?f # did not pay, the original
creditor has the right to foreclose in case of non-paymentby !.! 1 ). ! has in his possession some
merchandise to be delivered to the person who presents the proper receipt . and # each armed with a
receipt, as7 ! to turn overthe property to one of them. !n e5amination of the receipts reveals that they
are e5actly
of the same 7ind. ! does not 7now to him he should deliver the property. 'o he les an action in court by
means of which and # will be able to settle their conMicting rights. This isa. !n interpleader b. !n
injunction c. ! garnishment d. ! consignationD 1 *. >hen is there no loss of the thing due8 a. >hen the
object perishes b. >hen it goes out of commerce c. >hen it is in possession of another person d. >hen it
disappeared in such a way that its e5istence is un7nown or it cannot be recoveredD 1 . The e5penses
of consignation when properly made, shall be changed against the a, debtor b. creditor c. third person d.
Debtor and creditor 1 /. The designation of the debt to which should be applied a payment made by a
debtor who owes several debts in favor of the same creditora. Dation in payment c. tender of
payment b. !pplication of payment d. ayment by cessionD 1 . There is compensation a. ! in his
capacity as guardian of isa creditor of #. # in turn is a creditor of ! who owes him a personal debtb. !,
debtor of two partners is a creditor of the partnershipc. ! owes 12,222 payable &ay (1, "22/. owes !
12,222 payable on Lune (2, "22/. ?f today is &ay (1, "22/d. ! owes a fountain pen and owes ! also a
fountain pen. oth debts are due# "22. ! owes 1,222. in turn owes ! "22. oth debts are already
due. ater assigns the 1,222 credit to #, without the 7nowledge of !. The assignment was made on
Lune (. $n Lune 12, a "*,222 debt of infavor of ! matured. ! learned of the assignment on Luly 1. $n
Luly 12, a 1*2 debtof in favor of ! matured. ater # as7s ! to pay his debt. Cow much can # successfully
collect from !8a. 1,222 b 022 c. **2 d. )22# "21. ! owes 12,222. >hen the debt matured told !
that she need not pay the debt since condoning it. ! in turn e5pressed her gratitude. The debt has
been e5tinguished bya. %ovation c. #ompensation c. Aemission d. #onfusion# "2". @sing the preceding
number, ?f a rejected the o<er of , and did not collect within the statute of limitation Pperiod to
collectG the debt may be said to have been e5tinguished bya. Aemission b. #ompensation c. rescription
d. !nnulment# "2(. ! ma7es a chec7 payable to bearer and gives the chec7 to #, who gives it to D who
nally give it to !. The obligation of ! is e5tinguished bya. &erger b. #ompensation c. %ovation d.
rescription D "2). ! owes b 12,222 #, a friend of ! approaches and tell him ? will pay you what !
owes you. 9rom now on consider me your debtor , not !. ! is to be e5cussed. ?f agrees, there isa.
novation b. 'ubrogation c. Delegacion d. F5promission# "2*. The debtor shall lose every right to ma7e
use of the period, e5cepta. >hen after the obligation has been contracted, he becomes insolvent, unless
he gives a guaranty or security for the debtb. >hen he does not furnish to the creditor the guaranties or
securities which he has promisedc. >hen through a fortuitous event or by his own acts the guaranties or
securities have been impaired after their establishment, unless he immediately gives new ones e+ually
satisfactoryD "2 . The substitution or change of an obligation by another, which e5tinguishes or
modi ed the rst either changing its object or principal condition or substituting another in the place of
the debtor, or subrogating a third person in the rights of the creditora. #ompensation b. merger c.
rescription

d. novation "2/. ! method of novation caused by the replacement of the old debtor by a new debtor,
where the old debtor has proposed tothe creditor and which replacement has beenagreed to by said
creditor and by said new debtor is a. %ovation b. Delegacion c. F5promission d. Quantum 6 meruitD "2 .
! and entered into a contract whereby ! was to give "22,222. ater they novated the contract by
stipulating that instead of cash ! would give a particular car. 'ubs+uently the car was destroyed by a
fortuitous event. >hich is correct8a. novation is not allowed because the thingsdue are not of the same
7indb. ! is liable to pay "22,222, the amount of the old obligationc. the original obligation is
e5tinguished but not the obligation to deliver the card. The original obligation and the obligation to
deliver the car are both e5tinguished.D "12. !, and # e5ecuted a promissory note worded as follows:
we promise to pay to O, y and the sum of 2,222. 'gd. !, and #, which is correct8a. ! is obliged to
pay to O, ; and 2,222 c. ! is obliged to pay to ; (2,222b. ! is obliged to pay to O 2,222 d. ! is
obliged to pay to 12,222'D "11. ! obliged himself to give a speci c car on Lune 1", "22/ stipulating
that ! is liable even if the thing is lost due to fortuitous event and without the need of a demand. $n due
date, the car got lost due tofortuitous event. >hich is correct8a. $bligation is e5tinguished due to
fortuitous eventb. can compel ! to deliver another carc. can re+uire another person to deliver a car
with e5penses chargeable to !d. $bligation is not e5tinguished but converted into monetary
consideration! "1". !, and c obliged themselves solidarily to dive D a speci c car valued at p")2,222. $n
due date, D demanded delivery but the debtors failed to deliver. Thene5t day, while ! was still in
possession of the car, it was lost due to a fortuitous event. The right of D isa. To proceed against any of
the debtors for the value of the car plus damagesb. To proceed against ! only because the car was lost
while in his possessionc. %one, because the obligation is e5tinguished due to a fortuitous eventd. To
proceed against and # because they were not in possession of the car when it waslost due to a
fortuitous event! "1). ! owes 12,222. >ith the consent of ! and , # pays *,222. %ow, b and # are
the creditors of ! to the amount of *,222 each. 'uppose, ! has only *,222. >hich is correct8 a. b should
be preferred c. and # should be paid pro6 ratab. # should be preferred d. ! may choose whom to pay

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