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OBLIGATIONS - Diagnostic Exercises
OBLIGATIONS - Diagnostic Exercises
Soriano
TEST 1 – MULTIPLE CHOICE. Select the best 8. One of the following is determinate thing. Which is
answer by writing the letter of your choice. it?
a. A cow
1. The following are the requisite of an obligation,
b. A orse
except:
c. A Toyota car with engine no. 12345, body
no. 35787 and plate no. ABC 123.
a. Passive subject, debtor or obligor
d. A ring with diamond embellishment
b. Active subject, creditor or oblige
c. Efficient cause
9. Demand must be made on the due date of the
d. Demand
obligation in order for delay to exist in one of the
following cases. Which is it?
2. Obligations may arise from any of the following,
except:
a. When it was stipulated by the parties that
demand need not be made.
a. Contracts
b. When the law provides that demand need
b. Quasi-contracts
not be made.
c. Law
c. When the obligation does not indicate
d. Prestation
whether demand must be made or not on
due date.
3. It is the voluntary administration of the property of d. When time is of the essence of the contract.
another without his consent.
10. This refers on the delay on the part of the creditor.
a. Negotiorum gestio
b. Solution indebiti
a. Mora solvendi ex re
c. Quasi-delict
b. Compensation morae
d. Contracts
c. Mora solvendi ex personae
d. Mora accipiendi
4. It is a wrong committed without any pre-existing
relations between the parties.
11. There shall be no liability for loss due to fortuitous
events in one of the following cases. Which is it?
a. Natural obligation
b. Quasi-delict
a. When the debtor delays.
c. Quasi-contract
b. When the parties so stipulated that there
d. Crime
shall be liability even in case of loss due to
fortuitous events.
5. Unless the law or the stipulations of the parties
c. When the nature of the obligation requires
require another standard of care, every person
the assumption of risks.
obliged to give something is also obliged to take
d. When the obligation is to deliver a
care of it with:
determinate thing and there was no
stipulation as to the liability of the debtor in
a. Extra-ordinary diligence
case of loss due to fortuitous events.
b. Diligence of a father of a good family
c. Diligence of a good father of a family
12. The following are the remedies of the creditor to
d. Good diligence of a father of a family
pursue his claims against the debtor, except to:
6. The creditor has a right that is enforceable against a
a. Pursue the property owned and in possession
definite passive subject. The right is known as:
of the debtor.
b. Exercise all the rights and bring all the
a. Personal right
actions of the debtor (accion subrogatoria)
b. Real right
c. Impugn the acts which the debtor may have
c. Natural right
done to defraud his creditors (accion
d. Civil right
pauliana)
d. Compel the debtor to perform the service in
7. It is a thing that is particularly designated or obligations to do.
physically segregated from all others of the same
class.
13. D borrowed P50, 000 from C. C dies before he has
collected the debt leaving S, his son, as heir. Which
a. Generic thing of the following statements is correct?
b. Indeterminate thing
c. Determinate thing
d. Real thing
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
16. One of the following is a void obligation: 22. D s obliged to give C a specific watch, a specific
ring, or a specific bracelet. The parties agreed that C
a. D is obliged to give C P5,000.00 if C does will have the right to choose the thing which will be
not go to the moon. given to him. Before C could make his choice, the
b. D is obliged to give C P5,000.00 if D does watch and the ring are lost through D’s fault,
not go to Baguio. successively.
c. D is obliged to give C P5,000.00 if C does What is the right of C?
not go to Baguio.
d. D is obliged to give C P5,000.00 if D wins a. C may choose the delivery to him of the
first prize in the sweepstakes on a ticket that bracelet, or the price of watch or the price of
he had already purchased. the ring plus damages.
b. C cannot choose the price of the watch or
17. D is obliged to give C P10,000.00 if X dies. This is the price of the ring because the said objects
an example of: have already been lost.
c. C can only choose to have the bracelet
a. An obligation with a suspensive condition because anyway, D can still perform his
b. An obligation with a resolutory condition obligation.
c. An obligation with a period d. C can only choose to have delivery of the
d. A pure obligation bracelet or the price of the ring which was
the last item that was lost plus damages.
18. When the debtor binds himself to pay when his
means permit him to do so, the obligation is: 23. D is obliged to give C a specific ring. The parties
agreed that D may give a specific bracelet as
a. An obligation with a resolutory condition substitute. Which of the following statements is
b. A pure obligation true?
c. An obligation with a suspensive condition
d. An obligation with a suspensive period a. If the ring is lost through a fortuitous event
before substitution, the obligation is
19. Whenever a period is designated in an obligation, extinguished.
the said period shall be presumed to have been b. If the bracelet is lost through a fortuitous
established for the benefit of: event before the substitution, the obligation
is extinguished.
a. The debtor
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
c. If the ring is lost through a fortuitous event 30. In obligations with a penal clause, the creditor as a
after substitution, the obligation is rule may recover from the debtor in case of breach
extinguished. the following:
d. If the ring is lost through the debtor’s fault a. The penalty as agreed upon, plus damages
after substitution, the debtor shall pay and interest.
damages. b. The penalty and damages.
c. The penalty and interest.
24. A, B, C and D are obliged to give V, W, X, Y and Z d. Only the penalty
P20,000.00.
31. Consider the following statements:
a. V may collect from A P20,000.00
b. V may collect from A P5,000.00 I. The nullity of the principal obligation carries
c. V may collect from A P1,000.00 with it the nullity of the penal clause.
d. V may collect from A P4,000.00\ II. The nullity of the principal obligation does not
carry with it the nullity of the penal clause.
25. A, B, C and D joint debtors, are obliged to give V, III. The nullity of the penal clause carries with it the
W, X, Y and Z, solidary creditors, P20,000.00. nullity of the principal obligation. IV. The
nullity of the penal clause does not carry with it
a. V may collect from B P20,000.00 the nullity of the principal obligation.
b. V may collect from B P4,000.00
c. V may collect from B P5,000.00 a. Statements I and III are true.
d. V may collect from B P1,000.00 b. Statements I and IV are true.
c. Statements II and III are true.
26. A, B, C and D, solidary debtors, are obliged to give d. Statements II and IV are true.
V, W, X, Y and Z, joint creditors, P20,000.00.
32. D borrowed from C P50,000.00. the obligation is
a. V may collect from B P20,000.00 secured by a chattel mortgage on D’s Toyota car.
b. V may collect from B P4,000.00 Subsequently, D paid C P20,000.00. unknown to D,
c. V may collect from B P5,000.00 T, a third person, pays C P50,000.00 believing that
d. V may collect from B P1,000.00 D still owed C such amount.
27. A, B, C and D, solidary debtors, are obliged to give a. T can recover P50,000.00 from D. if D
V, W, X, Y and Z, solidary creditors, P20,000.00. cannot pay, T can foreclose the mortgage on
D’s Toyota car.
a. V may collect from B P20,000.00 b. T can recover nothing from D because he
b. V may collect from B P4,000.00 paid C without the knowledge and consent
c. V may collect from B P5,000.00 of D.
d. V may collect from B P1,000.00 c. T can recover P30,000.00 from D. If D
cannot pay, T can foreclose the mortgage on
28. A, 25, B, 35, and C, 17, are solidary debtors of X in D’s Toyota car.
the amount of P9,000.00. d. T can recover P30,000.00 from D. if D
cannot pay, T cannot foreclose the mortgage
a. X may collect from A P9,000.00 on D’s
b. X may collect from A P6,000.00 Toyota car.
c. X may collect from A P1,000.00
d. X may collect nothing because the 33. The following statements concerning payment by
obligation is voidable, C being a minor. cession are true, except one. Which is it?
29. The following obligations are divisible, except an a. The creditors become the owners of the
obligation: properties of the debtor that were ceded to
them.
a. To give definite things. b. Payment by cession extinguishes the
b. Which has for its object the execution of a obligation only to the extent covered by the
certain number of days of work. proceeds of the sale of the debtor’s
c. Which has for its object the accomplishment properties.
of work by metrical units. c. The debtor must be insolvent.
d. Which by its nature is susceptible of partial d. Cession affects all the properties of the
performance. debtor except those exempt from execution.
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
34. D obtained from ABC Bank a loan of P12,000.00 d. D may apply the payment to any of the four
payable at the end of 10 years. Before maturity, an debts.
extraordinary inflation supervened causing the value
of the debt to fall to P4,000,000.00 on the date of 39. The offer made by the debtor to pay his obligation to
maturity. On due date, D must pay ABC Bank: his creditor is known as:
a. P12,000,00.00 a. Consignation
b. P4,000,000.00 b. Tender of payment
c. P36,000,000.00 c. Application of payment
d. P3,000,000.00 d. Dation in payment
35. D borrowed from XYZ Bank P2,000,000.00 payable 40. Consignation alone without any tender of payment is
at the end of 5 years. Before maturity, an sufficient in the following cases except:
extraordinary deflation supervened causing the value
of the debt to rise to P5,000,000.00 on the date of a. When the creditor is absent or unknown or
maturity. On due date, B must pay XYZ Bank: does not appear at the place of payment.
b. When the creditor presents the title to the
a. P2,000,000.00 obligation for collection.
b. P5,000,000.00 c. When without just cause, the creditor refuses
c. P800,000.00 to give a receipt.
d. P20,000,000.00 d. When two or more persons claim the same
right to collect.
36. The money or currency which the debtor may
compel the creditor to accept in payment of a debt, 41. M owes P P10,000.00. the obligation is evidenced
whether public or private, is known as: by a promissory note. Subsequently, P assigned the
note to A, A to B, B to C, and C back to M. the
a. Notes payable to order obligation of M is extinguished by:
b. Legal tender
c. Bill of exchange a. Compensation
d. Mercantile document b. Confusion
c. Condonation
37. The delivery and transmission of ownership of a d. The obligation is not extinguished because
thing by the debtor to the creditor as an accepted there was no payment.
equivalent of performance is known as:
42. In order that condonation may extinguish an
a. Payment by cession obligation involving a movable property whose
b. Dation in payment value exceeds P5,000.00 –
c. Application of payment
d. Consignation a. It is sufficient that the condonation and the
acceptance are in writing, even a private
38. D owes C the following debts: P6,000.00 due on one.
June 12; P6,000.00 due on June 15; P6,000.00 due b. It is required that the condonation and the
on June 18; and P6,000.00 due in June 20. All debts acceptance be in a public instrument.
are unsecured except the debt due on June 20 which c. The delivery of the document evidencing the
is secured by a pledge of D’s diamond ring to C. By debt is sufficient since the property is
agreement, the benefit of the term on the 4 debts was movable.
granted to C. assuming that D has P6,000.00 on June d. The condonation and the acceptance may be
18 and is ready to pay C, which of the following made orally.
statements is correct?
43. One of the following is not a requisite of legal
a. D may apply his payment of P6,000.00 to compensation, which is it?
any of the debts due on June 12, June 15,
and June 18 since they are all due as of June a. That each one of the obligors be bound
18. principally, and that he be at the same time a
b. D may apply his payment only to the debt principal creditor of the other.
due on June 20 because it is the most b. That the two debts be due.
burdensome to him. c. That both debts be liquidated and
c. D must apply the payment proportionately to demandable.
the debts due as of June 18 at P2,000.00 d. That the debts are payable at the same place.
each.
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
44. Henry, husband, and Wilma, wife, are legally 48. D obliged himself to give 5 grams of “shabu” to C.
separated. By order of the court which decreed the later, the parties agreed that D would instead give to
legal separation, Henry is obliged to give a monthly C 5 sacks of rice. Which of the following statements
support of P10,000.00 to Wilma payable within the is correct?
first five days of the month. Wilma owes Henry a. The novation is void because the original
P10,000.00 by way of a business loan. On the other obligation is void. Hence, C cannot demand
hand, Henry has not yet given Wilma’s support of the delivery of 5 sacks of rice from D.
P10,000.00 for this month. Both debts are already b. The novation is valid because the new
due. Which of the following statements is correct? obligation is valid. Hence, C can demand the
delivery of 5 sacks of rice from D.
a. Both debts are extinguished by legal c. The original obligation although void is
compensation because both are already due. validated by the new obligation. Hence, C
b. Wilma can claim compensation but not can demand the delivery of 5 sacks of rice
Henry. from D.
c. Henry can claim compensation but not d. The new obligation is only voidable because
Wilma. had not yet performed the original obligation
d. Neither one may claim compensation at the time of the novation. Accordingly, the
because the debts are not of the same kind. new obligation is binding and C may
demand the delivery of 5 sacks of rice from
45. D owes C P10,000.00 with G as guarantor. C, on the D until the new obligation is annulled by a
other hand, owes D, P8,000.00. both debts are proper action in court.
already due but D is insolvent. In this case –
49. On July 1, 2015, D obliged himself to give C
a. C may collect from G P10,000.00 P50,000.00 if C will marry X on or before December
b. C may collect from G P2,000.00 because a 31, 2015. The condition of the obligation is a:
guarantor can set up compensation as
regards what the creditor owes the principal a. Positive condition
debtor. b. Negative condition
c. C may collect nothing from G because D is c. Joint condition
insolvent. d. Impossible condition
d. C may collect P8,000.00 from G.
50. Refer to No. 49. Which of the following statements
46. D borrowed P50,000.00 from C. subsequently, D is incorrect?
proposed to C that T would assume his (D’s) debt. C
accepted the proposal of D. This substitution of the a. The obligation of D is demandable if C
debtor is known as – marries X on or before December 31, 2015.
b. The obligation of D is extinguished if it is
a. Expromision already January 1, 2016 and C has not yet
b. Delegacion married X.
c. Tradition c. The obligation of D is extinguished on
d. Dation en pago December 2, 2015 if X dies on the same date
and C has not yet married X.
47. Refer to the facts of No. 46. Assume also that on due d. The obligation is demandable if C marries X
date, T could not pay because of his insolvency on January 1, 2016.
which was in fact subsisting but was known to D or
of public knowledge at the time that D delegated his 51. On July 1, 2015, D obliged himself to give C a
debt. In this case – specific car if C will not marry X on or before
December 31, 2015. The condition of the obligation
a. C can revive D’s debt because T’s is a:
insolvency was already existing at the time
that D delegated his debt. a. Positive condition
b. C can revive D’s debt whether or not he (D) b. Negative condition
was aware of T’s insolvency since he (D) c. Divisible condition
proposed the substitution. d. Impossible condition.
c. C cannot hold D liable because his (D’s)
obligation was extinguished when he was 52. Refer to N. 51. Which of the following statements is
substituted by T. incorrect?
d. The novation is void because D did not take
steps to determine the solvency of T when a. The obligation of D is demandable if C
he (D) delegated his debt. marries X on January 1, 2015.
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
64. One of the following does not apply to payment by 69. A, B and C are solidary debtors of X in the amount
cession. Which is it? of P9,000.00. subsequently, X renounced the share
of A. A accepted the renunciation of his share. On
a. Ownership of the debtor’s properties is due date, B paid X P6,000.00. B demanded
transferred to the creditor. reimbursement from C but C is insolvent. In this
b. The debtor must be insolvent case:
c. It affects all the properties of the debtor
except from execution. a. B may demand the payment of P3,000.00
d. There are several creditors. from A.
b. B may not demand any payment from A
65. A, B and C are solidarily liable to X for P30,000.00. because the share of A had already been
A pays X the whole amount due. C, however, is renounced or condoned.
insolvent. c. B may demand P1,500.00 from A
representing A’s share in C’s insolvency.
a. A alone will bear the share of c who is d. B may demand from A P4,500.00 so that
insolvent since he (A) made the payment. their sharing in the total debt is equal.
b. A can collect from B P10,000.00.
c. A can collect from B P15,000.00. 70. D is indebted to C for P20,000.00 which is due on
d. A can demand a refund of P10,000.00 from June 10. C owes D 15,000.00 which is due on June
X pertaining to C’s share since C is 5. On June 8, C assigned his credit rights to T. D
insolvent. gave his consent to the assignment but did not
reserve his right to the compensation. On June 10,
66. Anna Almeda, Belinda Bersola, and Claudia Cabrera how much may T collect from D?
executed the following promissory note:
a. P20,000.00
“ I promise to pay Dolores Dominguez or order the b. P15,000.00
sum of P30,000.00 on June 30, 2015. c. P5,000.00
d. Nothing.
(Sgd.) Anna Alameda
(Sgd.) Belinda Bersola 71. On May 1, 2015, D executed a written undertaking
(Sgd.) Claudia Cabrera” obliging himself to deliver 100 sacks of rice to C on
May 31, 2015. On May 28, 2015, C demanded the
On June 30, 2010, Dolores Dominguez can collect
delivery of 100 sacks of rice from D but D did not
from Anna Almeda:
comply. The following day, a fire of undetermined
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
origin destroyed D’s warehouse together with about Which of the rights of X arising from the said
500 sacks of rice stored therein and from which D documents/contacts will be transmitted to the heirs
intended to get 100 sacks of rice for delivery to C. of X
a. I and II
a. D’s obligation to deliver 100 sacks of rice to
b. II and III
C is extinguished, the cause of the loss being
c. III and IV
a fortuitous event.
d. I and IV
b. D’s obligation to deliver 100 sacks of rice to
74. The following statements pertain to either payment
C is not extinguished because he can get 100
by cession or dacion en pago.
sacks of rice from other sources.
c. D’s obligation to deliver 100 sacks of rice to
I. The debtor is insolvent.
C is not extinguished because D was in
II. Ownership of the thing/s is transferred to
default.
the creditor/s.
d. D’s obligation is to pay damages because he
III. Plurality of creditors is required.
was in default.
IV. Obligations are totally extinguished as a
rule.
72. On June 1, 2014, Demetrio obtained a loan of
P100,000.00 from Cornelio. The loan, which is
a. Statement I and IV pertain to payment by
payable on or before June 1, 2015, is secured by a
cession.
chattel mortgage on Demetrio’s brand-new Toyota
b. Statement I and III pertain to dacion en
car with plate number XYZ 123. On February 1,
pago.
2015, while Demetrio was opening the trunk of his
c. Statement II and IV pertain to dacion en
car at the parking lot of a grocery store to place the
pago.
groceries he had just purchased, three unidentified
d. Statement III and IV pertain to payment by
men approached him and took his car at gunpoint.
cession.
He reported the carnapping to the authorities but his
75. The return of what has been paid by mistake is
car has not been recovered.
known as:
a. Cornelio may demand immediate payment
of the loan unless Demetrio gives another a. Solution indebiti
security therefore. b. Negotiorum gestio.
b. Cornelio may demand payment only on June c. Quasi-delict.
1, 2010 because Demetrio has the benefit of d. Natural obligation.
the period and the loss of the car was due to
force majeure. Items 76, 77, and 78 are based on the following
c. Cornelio may no longer demand payment information:
since the loan was extinguished by reason of
the loss of the car due to fortuitous event. Dolores borrowed P15,000.00 from Consuelo. On due
d. Cornelio may demand immediate payment date, Dolores was not able to pay but she promised to
even if Demetrio offered another security give Consuelo a specific ring, a specific bracelet, or a
because the car is determinate and could not specific necklace, in payment of the debt. Consuelo
be replaced. accepted the offer of Dolores.
73. The estate of X who died recently, shows among 76. What kind of obligation is the new obligation of
other documents/contracts, the following: Dolores?
were lost successively through the fault of Dolores. compensation as regards the loan that
In this case: Wynona owes him.
c. If Hilario demands the payment of the loan,
a. Consuelo may demand the payment of the Wynona may set up compensation as
price of the ring or the price of the bracelet regards her support for the preceding month
plus damages, or the delivery of the that Hilario owes her.
necklace. d. If Hilario demands payment of the loan,
b. Dolores may deliver the necklace to Wynona may set up compensation as
Consuelo without any obligation to pay regards her support for the current month
damages. that Hilario owes her.
c. Dolores may deliver the necklace to
Consuelo with the obligations to pay 81. One of the following is not demandable at once.
damages because the ring and the necklace Which is it?
were lost through her fault.
d. Consuelo may demand the payment of the a. D to give his car to C. No date was fived by
price of the bracelet which was the last item the parties for the date of the delivery.
that was lost, plus damages. b. D to give his car to C until C completes his
course in BS Accountancy.
79. D obtained a loan of P100,000.00 from C. D used c. D to give his car to C until X dies.
the amount as placement fee for a job in the Middle d. D to give C his car should C enroll in BS
East. The loan agreement showed that the loan was Accountancy.
payable within one year with interest at 6% per
annum. However, there was no provision saying that 82. D owes C the following debts: P6,000.00 due on
the rights and obligations of the parties would be January 1; P6,000.00 due on January 15; P6,000.00
transmitted to their heirs or successors-ininterest. due on January 31; P6,000.00 due on February 15;
Before maturity, D died leaving his son as heir. P6,000.00 due on February 28; and P6,000.00 due
Which of the following is correct? on March 15. All the debts are unsecured except the
one on February 28. The parties stipulated that C
a. C cannot collect from S because no mention may demand payment on or before due date of each
was made in the agreement between D and debt. Assume that today is February 16. D, however,
C that the rights and obligations of the has not yet paid any of the debts. He has in
parties would be transmitted to their heirs. possession P6,000.00 which he intends to pay C.
b. C can collect from S although no mention
was made in the agreement that rights and a. D may apply the payment to the debt due on
obligations would be transmitted to the February 28 because it is the most
heirs. burdensome to him.
c. C cannot collect from S because the b. D may apply the payment to any of the five
obligation is personal to D. unsecured debts.
d. C cannot collect from S because the law c. D may apply the payment to any of the four
prohibits the transmission of the obligation. debts that have become due as of today,
February 16.
80. Hilario, husband, and Wynona, wife, are legally d. D may apply the payment to all of the debts
separated. By order of the court which decreed the that have become due as of today, February
legal separation, Hilario is obliged to give a monthly 16, proportionately at P1,500.00 each.
support of P20,000.00 to Wynona payable in
advance within the first five days of the month. 83. D made a promise to give a ring to C. Before D
Wynona owes Hilario P20,000.00 by way of loan. could deliver a ring to C, C borrowed D’s ring. After
On the other hand, Hilario has not yet given a week, D demanded the return of the ring that he
Wynona’s support of P20,000.00 for the preceding had lent to C. c refused to return the ring claiming
month and another P20,000.00 for the present that there was compensation between his obligation
month. All the debts are already due. Based on the to return the ring of D and D’s obligation to give
foregoing facts, which of the following statements is him a ring. Based on the foregoing facts, which of
incorrect? the following statements is incorrect?
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
(D). of:
a. An obligation with a suspensive condition. 91. Assuming that in No. 88, D did not deliver the land
b. An obligation with a resolutory condition. and its fruits to C. instead, he delivered the same to
c. An obligation with a period. X, who was in good faith when he acquired the land
d. A pure obligation. and its fruits, on April 30.
87. D bought a plane ticket for Hong Kong from Wings a. X is the rightful owner of the land.
Travel Company. Later, however, D cancelled his b. C is the rightful owner of the land.
flight to Hong Kong because of the SARS epidemic c. C has a right of action against X.
in the place. Upon being informed of the d. C cannot ask for damages against D.
cancellation, Wings Travel told D that D could get
the refund of his plane ticket within two days. In the 92. Which of the following is not a proper remedy for
meantime, D thought of going instead to Australia so the creditor?
he called Wings Travel to send him a ticket for
Brisbane promising to pay the cost of the ticket in a. To compel the debtor to make the delivery,
two days. Assuming that the refund due to D for his if the obligation is to deliver a determinate
unused plane ticket to Hong Kong is of the same thing.
amount as the cost of his plane ticket to Australia, D
two days later need not pay Wings Travel by reason
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
following cases is D justified in making a b. S need not take care of the horse because
consignation of his payment in court? nothing was mentioned in the agreement on
how the horse will be cared for.
a. If C refuses to accept the payment in the c. S must take care of the horse with
form of a check which is certified by the extraordinary diligence.
bank to be supported by sufficient funds. d. The absence of a stipulation on how the
b. If C refuses to accept the payment consisting horse must be cared for renders the sale void
of 5,000 pieces of P1.00 coins. because such stipulation is an essential
c. If C refuses to accept the first instalment in element of the contract.
the form of a P1,000.00 bill, D promising to
pay the balance of the debt in 4 equal 105. D owes C the following debts: P3,000.00 due on
monthly installments. August 10; P3,000.00 due on August 15; and
d. If C refuses to accept the payment consisting P3,000.00 due on August 25which is secured by a
of 250 pieces of P20.00 bills. pledge of D’s ring. If today is August 22, and D pays
C P3,000.00 with neither D nor C designating the
102. Which of the following condonations will not debt to which the payment shall pay, the payment
extinguish the debtor’s obligation? shall be applied:
a. The condonation is in a public instrument. a. To the debt due on August 10, following the
The acceptance is made orally. The “first-due, first-pay” basis.
condonation involves a computer printer b. To the debts due on August 10, August 15,
whose value is P4,000.00. and August 20, proportionately at P1,000.00
b. The condonation and the acceptance are in a each.
public instrument. The condonation involves c. To the debt due on August 25, since it is the
a parcel of land. most onerous to D.
c. The condonation and the acceptance are d. To all the debts proportionately at P750.00
made orally with the creditor delivering to each.
the debtor simultaneously the promissory
note amounting to P10,000.00. 106. M executed a promissory note payable to P for
d. The condonation is in a public instrument. P100,000.00. the note, which bears interest at 2%
The acceptance is made in a private per month, is payable after 60 days. On the date of
instrument. The condonation involves a maturity, P proceeded to M’s place to collect but
television set worth P20,000.00. when M demanded the presentation of the
promissory note, P could not present it claiming that
103. In which of the following independent cases is it had been lost. M is able and willing to pay the
the payor of the debtor’s debt not subrogated to the whole amount due including the interest but he is at
rights of the creditor? loss on what to do because P does not have the
instrument. On the other hand, if he does not pay the
a. D owes C P10,000.00. The debt is secured amount due, the interest on the principal will
by a pledge of D’s ring to C. D also owes X, continue to accrue. If you were M, the remedy that
P8,000.00. X pays C P10,000.00 without the you will likely avail yourself of is:
knowledge of D.
b. D owes C P10,000.00. the debt is secured by a. Dacion en pago
a pledge of D’s ring to C. X pays C b. Payment by cession
P10,000.00 with the consent of D. c. Consignation
c. D owes C P10,000.00. the obligation is d. Application of payment
guaranteed by G. G pays C P10,000.00
without the knowledge of D. 107. A, B,C, and D owe X, Y and Z the sum of
d. D owes C P10,000.00. The obligation is P12,000.00. based on the foregoing data, which of
guaranteed by G. X pays C P10,000.00 the following statements is incorrect?
without the knowledge of D.
a. The obligation is joint.
104. S sold his only horse to B for P10,000.00 cash. b. There are seven distinct debts in the
The parties agreed that S shall deliver the within one obligation.
week from their agreement. Nothing is mentioned in c. Each debtor is liable only for a total
the agreement on how the horse will be cared for by P3,000.00.
S before delivery. d. Each creditor is entitled to collect a
maximum of P4,000.00.
a. S must take care of the horse with the
diligence of a good father of a family before
delivery.
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
108. P took a public bus in going to his office. the farm. When A noticed that B was not again
Although P paid his fare, the bus conductor does not around during the second day, he himself took care
issue to him a ticket. Along the way, the met an of the animals by feeding them and cleaning the pig
accident causing a slight injury to P and other and poultry pens. A did this for the next three days
passengers. If P is to recover damages from the bus until B returned. A incurred necessary and useful
owner, the source of the bus owner’s liability is: expenses amounting to P5,000.00 in the process.
Under the circumstances, B is obliged to reimburse
a. Contract A for such expenses which the latter incurred by
b. Quasi-delict reason of:
c. Law
d. P cannot recover any amount because no a. Contract
ticket was not issued. b. Solutio indebiti
c. Negotiorum gestio
109. One of the following obligations is void. Which d. Quasi-delict
is it?
113. D has a savings deposit with XYZ Bank in the
a. D to give C P50,000.00 if C does not run amount of P20,000.00 which D may withdraw
100 miles without stopping. anytime from the bank. He also has a loan obligation
b. D to give C P50,000.00 when D has the to XYZ Bank amounting to P20,000.00 which has
means. become due. D wants to withdraw his savings
c. D to give C P50,00000 if D buys a brand- deposit but XYZ Bank informs D that it has claimed
new car. compensation of D’s deposit and his loan obligation.
d. D to give C P50,000.00 if C runs for
barangay chairman next year. a. Both D and XYZ Bank may claim
compensation.
110. Which of the following obligation is a pure b. Neither D nor Xyz bank may claim
obligation and is demandable at once? compensation
c. Only D may claim or oppose compensation
a. D to allow C to use D’s car until December d. Only XYZ Bank may claim or oppose
31, 2011. compensation
b. D to allow C to use D’s car until C finishes
his course in accounting. 114. Which of the following is an indivisible
c. D to give C his car. No mention is made obligation?
when D shall give the car.
d. D to give C a car if C finishes his course in a. To give a rendition tonight of Handel’s
accounting. “Messiah” in a concert at the Folks Arts
Theater.
111. On January 1, 2010, D obtained a loan of b. To construct a pavement measuring 2 meters
P100,000.00 from C. the loan is secured by a chattel wide and 10 meters long.
mortgage on D’s car and is payable on December 31, c. To lecture for 5 Saturdays in a tax seminar.
2010. On September 26, 2010, the car was taken at d. To pay a loan obligation of P100,000.00 in
gunpoint from D while he was starting its engine at 10 equal monthly installments.
the parking lot of a department store.
115. Devera obtained a loan of P50,000.00 from
a. D’s loan obligation is extinguished. Centeno who is engaged in the business of
However, D must give a property which C financing. The written contract of the parties
may sell to satisfy his claim. provides that the loan shall bear interest of 12% per
b. D’s loan obligation is subsists. However, C annum and shall be paid in full together with the
may demand its immediate payment unless interest at the end of 12 months at Centeno’s
D gives another security. business office. On due date, Devera proceeded to
c. D’s loan obligation subsists. However, C Centeno’s business office to pay his debt but the
may not demand immediate payment since place was padlocked and shows no signs that it had
the loss of the security was without the fault been occupied for some time. Devera is now at a
of D. D, moreover, is not required to give a loss on what to do as Centeno did not forward his
new security. present address to him. Devera does not want to
d. D’s obligation is extinguished together with have any outstanding obligation at the end of the
the mortgage since the loss of the car was year and incur further interest. Which course of
without the fault of D. action will you recommend to Devera?
112. A and B are the owners of adjacent poultry and a. Tender of payment
piggery farms. One day, B got sick and failed to visit
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
126. Prime Engineering Review Center (PERC) 130. D owes C P20,000.00 due on March 15. C, on
stated in the leaflets it distributed last January that the other hand, owes D the following debts:
any reviewee who places first in licensure P8,000.00 due on March 1,P3,000.00 due on March
examinations for engineers this year will receive a 8, P5,000.00 due on March 14. On March 12, C
cash prize of P150,000.00. assigned his right to T with notice to D but with D
not giving his consent to the assignment. On March
a. The obligation of PERC is subject to a 15, T can collect from u:
suspensive condition.
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
b. The right of choice cannot be given to the 150. Dacion en pago and payment by cession are
creditor. special forms of payment. They are similar in which
c. The debtor must give the substitute in case of the following respects?
the principal thing is lost due to the debtor’s
fault before substitution. a. On the number of creditors involved.
d. If the principal is void, the debtor is not b. On the extent of the properties involved in
obliged to give the substitute. the payment.
c. On the purpose of the payment.
147. D owes C the following debts: P5,000.00 due on d. On whether the debtor is released
January 1; P7,000.00 on January 5; P8,000.00 due completely from his obligation/s.
on January 10; P10,000 due on January 15; and
P5,000.00 due on January 20. By agreement of the 151. D is indebted to C for P52,000.00. On due date,
parties, D was given the benefit of the period. As of D tendered payment amounting to P52,000.00 which
January 17, D has not paid any of the debts. He has consisted of the following: 47 pieces of P1,000.00
P5,000.00 which he wants to remit to C. bills for a total of P47,000.00; and 250 pieces of
P20.00 bills for a total of P5,000.00. C refused to
a. D may apply the payment to any of the five accept the payment and demanded that D make his
debts. payment all in P1,000 bills since, according to him,
b. D may apply the payment to any of the four the P20.00 bills were too bulky and inconvenient for
debts that have become due as of January him to carry.
17.
c. D may apply the payment either to the debt a. D may consign the payment since the refusal
due on January 1 or January 20. by C to accept the payment was not justified.
d. D may apply the payment only to the debt b. C's reason for refusing to accept the
due on January 1. payment was justified. Hence, D cannot
consign the payment.
148. Refer to the preceding number. Assume that D c. D cannot compel C to accept the payment he
did not designate the debt to which the payment was offering because a debtor must make his
shall apply. In this case: payment according to the wishes of his
creditor.
a. C may apply the payment to any of the five d. D may make his payment in check and
debts. compel C to accept the payment since this
b. C may apply the payment to any of the four form is the most convenient for C.
debts that have become due as of January
17. 152. Which of the following is a characteristic of
c. C may apply the payment either to the debt expromision but not of delegacion?
due on January 1 or January 20 only since
the amount of the payment is the same as the a. It is made with or without the consent of the
amount of each debt. debtor.
d. C may apply the payment to the debt due on b. The third person who makes the payment to
January 1 only. the creditor is always entitled to
subrogation.
149. Refer to no. 147. Assume the creditor did not c. In case of insolvency of the new debtor, the
also designate the debt to which the payment shall creditor may still recover from the original
apply. In such a case: debtor under certain circumstances.
d. It is initiated by the debtor himself.
a. Payment shall be applied proportionately to
the five debts. 153. D, a depositor of ABC Bank, visited the branch
b. Payments shall be applied proportionately to of the bank at España Boulevard to withdraw from
the four debts that have become due as of its automated teller machine (ATM). After pressing
January 17. correctly the amount of P500.00, the machine
c. Payment shall be applied only to the debt dispensed 10 piece of P500.00 bills or a total of
due on January 1 since it is the first debt that P5,000.00. The receipt released by the ATM showed
has become due. that only P500.00 was withdrawn.
d. Payment shall be applied proportionately to
the debit due on January 1 and January 20 a. D does not have to return the excess of
since the amount of each debt is of the same P4,500.00 because it was not his fault that
amount as the payment. the ATM would dispense more than what he
wanted to withdraw.
b. D does not have to return the excess of
P4,500.00 because the receipt did not
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
indicate that the said amount was up compensation as regards the amount that
withdrawn. Collantes owes Decoroso because he
c. D must return the excess of P4,500.00 (Gualberto) is not a principal debtor.
because it was a case of payment that was b. Collantes can hold Gualberto liable for only
not due. P5,000.00 because Gualberto can set up
d. D must return the excess of P4,500.00 compensation as regards the amount that
because the bank will likely discover that he Collantes owes Decoroso.
was the one using the ATM when the
c. Collantes can hold Gualberto liable for the
overpayment was made.
amount of P30,000.00 only because that is
the amount that Collantes owes Decoroso.
154. D is indebted to C in the amount of
P100,000.00. The debt is secured by a mortgage of d. Collantes cannot hold Gualberto liable for
the lot of D and the guaranty by G. G, without any amount because the insolvency of
informing D, paid the total amount of the loan to C. Decoroso released Gualberto from liability.
a. G cannot collect from D. He cannot also 158. A and B are joint debtors of W, X, Y and Z,
foreclose the mortgage. solidary creditors, in the amount of P20,000.00. In
b. G can collect from D. However, if D cannot this case:
pay, G cannot foreclose the mortgage.
c. G can collect from D. If D cannot pay, G a. W can collect from either A or B
can foreclose the mortgage. P20,000.00. Then W must give P5,000.00
d. G cannot collect from D. However, G can each to X, Y and Z.
foreclose the mortgage. b. W can collect only the maximum amount of
P10,000.00 each from A and B. If W is able
155. A, B and C are liable to X in the amount of to collect P10,000.00 from A, W must give
P30,000.00. The debt is evidenced by a promissory P2,500.00 each to X, Y and Z. If W is able
note which reads "I promise to pay X or order to collect P10,000.00 from B, W must give
P30,000.00". The note is signed by A, B and C. X P2,500.00 each to X, Y and Z.
indorsed the note to Y, Y to Z, and Z to A for c. W can collect only the amount of P5000.00
merchandise Z bought from A. from either A or B. When he collects the
said amount, W does not have to give the
a. The obligation under the note is totally amount of P1,250.00 each to X, Y and Z.
extinguished. d. W can collect only the maximum amount of
b. The obligation under the note is P2,500.00 each from A and B. When he
extinguished only up to P10,000.00. collects the total amount of P5,000.00, W
c. The obligation under the note is does not have to give the amount of
extinguished only up to P20,000.00. P1,250.00 each to X, Y and Z.
d. No part of the obligation is extinguished.
159. D owes C P6,000.00 which is due on January
156. When two persons are claiming the same right 10, and another debt of P12,000.00 which is due on
to collect from you and you are in doubt as to whom January 20. Both debts are unsecured and non-
you will give your payment, your remedy so that you interest bearing and are already due. D, however, has
will not pay to the wrong person is: only P3,000.00 which he gives to C without
informing C as to which debt the payment shall
a. tender of payment. apply. C also did not indicate on the receipt he
b. application of payment issued to D to which of the two debts the payment
c. dacion en pago. shall apply. In this case:
d. consignation.
157. Decoroso borrowed P50,000.00 from Collantes a. The payment of P3,000.00 shall be applied
with Gualberto as guarantor. However, Collantes is to the debt due on January 10 because it was
also indebted to Decoroso in the amount of the first to become due.
P30,000.00. Both debts have become due. Collantes b. The payment of P3,000.00 shall be applied
demanded payment from Decoroso but Decoroso has to the debt due on January 20 because it is of
become insolvent with assets of only P15,000.00 a greater amount.
which he used in partial payment of his debt to c. Payment cannot be applied to either of the
Collantes. In this case: two debts because it is incomplete.
d. The payment of P3,000.00 shall be applied
a. Collantes can hold Gualberto liable for the proportionately in the amount of P1,000.00
remaining P35,000.00. Gualberto cannot set
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
sing is transmissible since it would not II. D is obliged to deliver 10 sacks of rice to C.
require much effort on the part of either D or Before the scheduled delivery, the warehouse
X who are both professional singers. of D containing 500 sacks of rice from which
D intended to get 10 sacks of rice for delivery
166. D received a check for P5,000.00 drawn against to C, was razed in a fire together with the
ABC Bank in payment of a debt due him. Upon stock of rice through no fault of D
cashing the check, D requested the teller to give him
10 pieces of P500.00 bill and to place the money in In your evaluation of the above cases, the obligation
an envelope. As he was in a hurry, D left the bank is extinguished by loss in:
without bothering to count the cash. Shortly after
reaching his office, D counted the money in the a. Both I and II.
envelope and discovered that it contained 10 pieces b. Neither I nor II.
of P1,000.00 bill or an excess of P5,000.00. c. I only.
d. II only.
a. D does not have the obligation to return the
excess of P5,000.00 because it was not his 169. Which of the following obligations is void?
fault that the teller would pay him an amount
in excess of what was stated in the check. a. D agreed to hire C as manager of his (D's)
b. D does not have the obligation to return the business if C is willing to relocate to Cebu.
excess of P5,000.00 because the bank will b. D agreed to paint the portrait of C if D will
not likely know who among the bank clients enroll in a painting class this coming month.
received such excess amount. c. D promised to pay his debt to C amounting
c. D must return the excess of P5,000.00 to P20,000.00 as soon as possible.
because he has the obligation to do so under d. D agreed to give a monthly support of
the principle of solutio indebiti. P5,000.00 to C until D ends his contract of
d. D must return the excess of P5,000.00 employment overseas.
because he has the obligation to do so under
the principle of negotiorum gestio. 170. D owes C P50,000.00. The obligation is secured
by the guaranty of G and a real mortgage on D'S lot.
167. The following condonations are presented to you Subsequently, G, without the knowledge of D, paid
for evaluation: C the amount of P50,000.00.
176. D obtained a loan of P50,000.00 from C. The 179. D borrowed P50,000.00 from C. The debt,
loan was evidenced by a promissory note executed which is payable within one year, is secured by a
by D which said nothing about the transmissibility of mortgage that D constituted on his lot. The mortgage
the loan obligation or the right to collect it. A month is recorded in the Registry of Property. C dies before
before the due date of the loan, C died leaving S, his the due date of the debt and was not able to collect
son, as heir. On due date, S presented the promissory any amount of his loan receivable from D. He was
note to D for payment, but D refused claiming that survived by S, his only son and heir. D, taking
he owed C but not S. advantage of the situation, sold the lot to T who was
not aware of the mortgage constituted thereon.
a. D may refuse to pay because the right to a. The mortgage is not binding on T since he
collect belonged only to C. was not aware of it at the time he bought the
b. D may not refuse to pay because the right of C lot.
to collect was transmitted to S who was the
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
b. S, the son of C, has the right to collect the II. Get a horse from another person at D's
amount of the note from D and foreclose the expense.
mortgage if the D cannot pay. III. Demand payment of damages from D.
c. The mortgage is not binding on T since D
was in bad faith when he sold the lot to T. Which of the foregoing remedies may be availed of
d. The right to collect the loan and foreclose by C?
the mortgage were extinguished upon the
death of C. a. I and III
b. II and III
180. A, an agent of P, owes B P20,000.00. B, on the c. I only
other hand, owes P, P20,000.00. Both debts are due. d. II only
a. P may claim legal compensation. 185. D is obliged to repair the car of C. D failed to
b. A may claim legal compensation. repair the car despite the demands made by C. D
c. B may claim legal compensation. wants to know from you which of the following
d. Neither P, A nor B may claim legal remedies are available to him:
compensation.
I. Compel D repair the car.
181. On January 1, 2014, D and C agreed that D II. Have the car repaired by another person at
would deliver to C a specific agricultural land on D's expense.
July 1, 2014. From January 1 to June 30, 2014, D III. Demand payment of damages from D.
harvested palay from the land worth P20,000.00. D
actually delivered the land to C on September 30, Which of the foregoing remedies may be availed of
2014. At that time, crops valued at P15,000.00 that by C?
grew beginning on July 1, 2014 remained
a. I and III
unharvested. C had a personal right against D for the
b. II and III
delivery of the thing and its fruits beginning on:
c. I only.
d. II only.
a. January 1, 2014
b. June 30, 2014.
186. The kind of fraud which renders a contract
c. July 1, 2014.
voidable is:
d. September 30, 2014.
a. Casual fraud.
182. C acquired a real right over the thing and its
b. incidental fraud.
fruits on:
c. fraud in performance.
d. future fraud.
a. January 1, 2014.
b. June 30, 2014.
187. D was obliged to deliver a specific car to C on
c. July 1, 2014.
May 31, 2015. On such date, however, D failed to
d. September 30, 2014.
deliver the car. C also did not make any demand for
the delivery of the car.
183. The palay harvested from the agricultural land
mentioned in Item 181 is an example of:
a. D was in delay when he failed to deliver the car
on due date.
a. industrial fruit.
b. D was not in delay when he failed to deliver the
b. natural fruit.
car on due date.
c. civil fruit.
c. D would be on delay only if C made a demand
d. It is not a fruit.
for the delivery of the car on or before due date.
184. D is obliged to deliver his only horse to C on d. D was in delay whether demand was made or
May 31, 2014. C made a demand against D for the not since time was of the essence of the contract.
delivery of the horse on May 31, 2014. However, D
188. D appointed C as his agent to purchase a parcel
failed to deliver the horse. In view thereof, C
of land belonging to X. D promised to give a
consulted you and ask which of the following
commission of P10,000.00 to C if C can present to D
remedies are available to him.
the deed of absolute sale signed by X in favor of D
on or before December 31, 2014. The condition of
I. Compel D to deliver the horse to him.
the obligation is:
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
191. Refer to No. 190. Which of the following 195. The delivery of promissory notes payable to
statements is incorrect? order or other bills of exchange or other mercantile
documents shall produce the effect of payment when
a. D'S obligation becomes demandable if it is they are:
already January 1, 2015 and C has not yet
signed the contract with X. a. delivered.
b. D'S obligation becomes demandable on b. cashed.
December 5, 2014 if X dies on such date c. have been impaired through the fault of the
without C having signed the contract with debtor.
X. d. deposited in the bank.
c. D'S obligation is extinguished if C signs the
contract with X on or before December 31, 196. D owes C P 10,000.00. T offers to pay D'S
2014. obligation and tells D that D need not reimburse
d. D'S obligation is extinguished if it is him. However, D does not give his consent to T 's
already January 1, 2015 and C has not yet offer not to be reimbursed. C, nonetheless, accepts
signed the contract with X. the payment from T.
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
d. The payment will be valid if T had the d. it affects all the properties of the debtor
intention to be reimbursed and D consented those exempt from execution.
to the payment.
201. Refer to No. 201. Assuming that D did not
197. Which of the following payments is not valid? designate the debt to be paid when he remitted the
amount of P4,000.00 to C on May 31. C issued a
a. Payment to the person in Whose receipt for the payment he received from D but he
favor the obligation was constituted. did not also designate the debt that was being paid.
b. Payment to the creditor's successor In this case:
in interest.
c. Payment to the creditor's heirs. a. D may apply the payment to the debt due on
d. Payment made by the debtor to the June 5.
person in possession of an order b. D must apply the payment proportionately to
instrument evidencing the credit but the 5 debts that have become as of May 31
such person is not the indorsee at P800.00 each.
thereof. c. D may apply the payment to the debt due on
May 22 which is the most burdensome to
198. D obtained a loan of PIO,OOO.OO from C who him.
was in his right mind at the time he granted the loan d. D must apply the payment to all the debts
to D. On due date, D paid his loan obligation of P proportionately at P666.67 each.
10,000.00 to C who had since become insane. Of the
total amount received, C lost P4, 000.00 and spent 202. Refer to No. 201. Assuming that D did not
P6,000.00 for his food and other necessary designate the debt to be paid when he remitted the
expenses. amount of P4,000.00 to C on May 31. C issued a
receipt for the payment he received from D but he
a. The obligation is totally extinguished did not also designate the debt that was being paid.
because C received the payment in full. In this case:
b. The obligation is extinguished up to
P4,000.00. a. The payment shall be applied
c. The obligation is extinguished up to proportionately to the debts that have
P6,000.00. become due as of May 31 proportionately at
d. No part of the obligation is extinguished P800.00 each.
because C was insane at the time he received b. The payment shall be applied to the debt due
the payment. on May 22 since it is the debt that is most
onerous to
199. Which of the following payments is not valid? c. The payment shall be applied to all debts
proportionately at P666.67.
a. Payment to a third person who acquires the d. The payment shall not be applied to any debt
creditor's right after the payment. because there was no designation by the
b. Payment which, although made to a third parties.
person, was ratified by the creditor.
c. Payment to a third person who does not have 203. D issued a promissory note payable to the order
the authority to receive the payment but the of C for a debt of P 10,000.00 which bears interest at
creditor, by his conduct, has led the debtor 2% per month. On due date, X went to the place of
to believe that the third person had authority D to collect the debt claiming that C assigned the
to received payment. note to him. X, however could not present the
d. Payment made in good faith to a person in promissory note claiming that he had lost it. D wants
possession of the instrument but not the to make the payment because he does not want the
credit. interest to accrue but he is at a loss as to whether he
would make the payment to X. In this case the
200. The following statements concerning payment course of action that you will advise D to take is:
by cession are true, except:
a. consignation.
a. the creditors become the owners of the b. tender of payment.
properties of the debtor that were ceded to c. application of payment.
them. d. dation in payment.
b. payment by cession extinguishes the
obligations only to the extent covered by the 204. The obligation is not extinguished by reason of
proceeds of the sale of the debtor's the loss of the thing through a fortuitous event in
properties. three of the following cases. Which is the exception?
c. the debtor must be insolvent.
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
a. When the nature of the obligation requires 16; and P3,000.O due on June 18. On June 17, C
the assumption of risks. assigned his right to X. C notified D of the
b. When the debtor has incurred in delay. assignment but D did not give his consent thereto.
c. When the obligation is to give a determinate On June 20, X may collect from D:
thing and the parties have not stipulated
whether or not there shall be liability in case a. P30,000.00
of fortuitous events. b. P5,000.00.
d. When the debtor has promised to deliver the
c. P2,000.00.
same thing to two or more persons who do
d. Nothing.
not have the same interest.
205. In order that condonation may extinguish an 209. Refer to No. 208. Assume the same facts except
obligation involving a movable property whose that when C made the assignment of his credit to X,
value exceeds P5,000.00 C did not notify D about it. It was only on June 20
when X went to D to collect that D learned of the
a. It is sufficient that the condonation and assignment. In this case, X may collect from D:
acceptance are in writing, even a private
one. a. P30,000.00.
b. It is required that the condonation and b. P5,000.00
acceptance must be in a public instrument. c. P2,000.00
c. The delivery of the document evidencing the d. Nothing.
debt is sufficient since the property is
movable. 210. D owes C P50, 000. 00. Subsequently, D
d. The condonation and acceptance may be
proposed to C that T will assume his (D's) debt. C
made
accepted the proposal of D. This type of novation
which involves the substitution of the debtor is
206. In order for legal compensation to take place,
two of the requisites are: that each one of the known as:
obligors be bound principally, and that he be at the
same time a principal creditor of the other, and that a. Delegacion.
the two debts must be due. In addition, the following b. Expromision.
requisites must be present, except: c. Objective novation.
d. Subrogation.
a. That both debts consist of a sum of money
or if the things due are consumable, that they
211. Assume the facts in No. 210. Assume also that
be of the same kind and also of the same
on due date, T could not pay because of his
quality if the latter has been stated.
insolvency which was in fact subsisting but was not
b. That both debts be liquidated and
known to D or of public knowledge at the time that
demandable.
he delegated his debt. In this case:
c. That the debts must have the same amount.
d. That over neither of them there should be
a. C can revive D'S debt because T's
any retention or controversy commenced by
insolvency was already existing at the time
third persons and communicated in due time
that D delegated his debt.
to the debtor. b. C can revive D'S debt whether or not he (D)
was aware of T's insolvency since he (D)
207. D owes C P20,000.00 due on June 20. C owes D proposed the substitution.
P 14,000.00 due on June 15. On June 12, C assigned c. C cannot hold D liable because his (D's)
his right to X. D consented to such assignment obligation was extinguished when he was
without any reservation of his right to the substituted by T
compensation. On June 20, X may collect from D: d. The novation is void because D did not take
steps to determine the solvency of T when
a. P20,000.00. he (D) delegated his debt.
b. P6,000.00.
c. P14,000.00 212. D is obliged to deliver a specific horse to C for
d. Nothing. entry in the derby. The day before the agreed date of
delivery, the horse broke its right front leg. While it
could still walk, it could no longer run.
208. D owes C P30,OOO.00 due on June 20. C owes
D the following debts: P 15,000.00 due on June 2;
P4,000.00 due on June 14; P6,000.00 due on June
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
214. D is obliged to pay C P 10,000.00 on or before 220. Refer to No. 219. Assume the same facts except
June 15. C is obliged to pay D P 10,000.00 on June that A, B and C are solidarily liable to X in the
30. Who may claim compensation on June 15? amount of P 12,000.00. On due date, X demanded
payment from A but A refused to pay. How much
a. D only. may X collect from B?
b. C only.
c. Either D or C. a. P 12,000.00 plus damages for delay.
d. Neither D nor C. b. P8,000a00 plus damages for delay.
c. P4,000. 00 plus damages for delay.
215. A, 17 years old, B, 25, and C, 30, jointly d. P4,000.00 without any damages.
borrowed P6,OOO.OO from X. How much may X
collect from B? 221. During a flood, the properties of D were saved
from destruction by C without the knowledge of D
a. P6,000.00 who was then away. C incurred necessary and useful
b. P4,000.00. expenses in the act of saving D'S properties. For
c. P2,000.00. such expenses:
d. Nothing, because A was a minor at the time
the obligation was constituted. a. D must reimburse C although C acted
without the consent of D.
216. Refer to No. 215. Assume the same facts except b. D is not required to reimburse C because C
that the debtors are bound solidarily. How much acted without D'S consent.
may X collect from B? c. D must reimburse C because there was an
implied contract between D and C.
a. P6,000.00. d. D need not reimburse C because C's• act of
b. P4,000.00. saving D'S properties is a gratuitous act that
c. P2,000.00. requires no compensation.
d. Nothing, because A was a minor at the time
the obligation was constituted. 222. D is obliged to give his only car to C on
December 1, 2014' On December 1, 2014, D did not
217. A, B and C jointly borrowed P3,000.00 from X. deliver the car. The following day, armed men
On due date, A was insolvent. How much may X forcibly took the car from D'S garage.
collect from B?
a. D'S obligation to give the car is
a. P3,000.00. extinguished.
b. P2,000.00. b. D must give another car of the same kind
c. PI,500.00. and quality to C because he was already in
d. PI,000.00 delay when the loss took place.
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
c. D is obliged to pay damages to C. III. It may refer to a past event unknown to the
d. D must give another car or pay damages at parties.
the option of C. IV. It merely fixes the time for the
efficaciousness of an obligation.
223. Orlando brought his typewriter at the shop of
In your evaluation of the foregoing statements:
Remigio for repair. Orlando made several demands
for the repair work to be done but Remigio did not a. I and Ill refer to period.
undertake the repairs. Eventually, Remigio returned b. I and Ill refer to condition.
the typewriter, unrepaired and with several parts c. Il and IV refer to condition.
missing. d. Ill and IV refer to period.
I. Orlando can have the typewriter repaired by
another repair shop with the repair cost 227. The creditor has a right to the fruits of the thing
thereof chargeable to Remigio. from the time:
II. Orlando can compel Remigio to undertake
the repairs. a. the thing and its fruits have actually been
III. Orlando can ask for damages for the delivered.
missing parts of the typewriter at the b. the contract is perfected.
expense of Remigio. c. the obligation to deliver the thing arises.
d. the payment of the price of the thing and its
Which of the above remedies may be availed of by
fruits has been made.
Orlando?
a. I and II. 228. One of the following is an obligation with a
b. II and III. period with a suspensive effect. Which is it?
c. I and III.
d. All of I, II and III a. "I will give you P 5,000.00 per month as
support beginning January 1 of next year."
224. D obtained a loan of P30,000.00 from C with G b. "I will give you P5,000.00 per month as
Aa guarantor. C, on the other hand, owes G support until you finish your law course."
P30,000.00. Both debts are due. c. "I will give you P5,000.00 per month for
your medicines if your physical examination
I. If C sues D, D may successfully put up the says you are sick."
defense of compensation because C owes d. "I will give you P5,000.00 per month as
G, D'S guarantor. support until you are able to find work."
II. If C sues D, D may not put up the defense
of compensation as to what C owes G. 229. D is obliged to give Object I, Object 2 or Object
III. If D cannot pay and C sues G, G can put up 3 to Cs the right of choice as to which object will be
compensation because C owes him delivered to C belongs to:
P30,000.00.
IV. Both D'S debt to C and C's debt to G are a. both the parties.
extinguished by legal compensation. b. D only.
c. C only.
In your evaluation of the foregoing statements:
d. neither of the parties.
a. I and Ill are true.
b. b. Il and IV are true. 230. The obligation referred to in the preceding
c. I and IV are true. number is:
d. Il and Ill are true.
a. an alternative obligation.
225. The following obligations are demandable at b. a facultative obligation.
once, except: c. a conjunctive obligation.
d. a simple obligation
a. An obligation with a condition antecedent.
b. An obligation without any term or condition. 231. Refer to No. 229. Assume the following:
c. An obligation with an in diem period. I. Object 1 and Object 2 are lost through D'S fault,
d. An obligation with a condition not to do an and later Object 3 is lost through a fortuitous event.
impossible thing. II. Object 1 and Object 2 are lost through a
fortuitous event, and later Object 3 is lost through
226. The following statements are presented to you: D'S fault.
I. It may or may not happen.
In your evaluation of the foregoing statements, D'S
II. It always refers to the future.
obligation is extinguished in:
Page 28 of 37
OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
Page 29 of 37
OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
indicates the debt to which the payment shall apply, the now confused on whom to pay. He is worried that the
payment shall be applied to: interest will keep on accruing if he does not pay. If you
were in the position of M, the safest thing that you will
a. The debt due on July 15 or July 25 because
do is:
the payment is of the same amount as the
said debts. a. Pay to H because as holder and indorsee, he
b. To any of the debts due on July 1 or July 6 acquired title to the note.
in partial payment or to the debt due on b. Pay to R because as the agent of C, he is an
July 15 in full payment, since the said debts extension of the personality of C.
have already become due as of the time the c. Go to court and deposit the payment by way
payment is made. of consignation.
c. To the debts due on July 1, July 6 and July d. Just ignore the two. It is not your fault that
15 proportionately at P600.00, P 1,000.00, they have conflicting claims.
and P400.00, respectively.
247. When the debtor binds himself to pay as soon as
d. To all the debts proportionately in the ratio
he has the means is:
of
a. The obligation is void because payment
243. Which of the following is a void obligation?
dependent upon a condition that is
a. “D to give C P50,000.00 if C does not fly to potestative on.
the moon." b. The obligation is valid, but the creditor must
b. "D to give C P50,000.00 if D wins in the go to and ask the court to fix the period for
sweepstakes." D has not yet bought the the payment of the obligation.
sweepstakes ticket. c. The obligation is void because there is no
c. "D to give C P50, 000. 00 if D marries X." meeting of minds between the parties as to
d. "D to give C P50, 000.00 if C marries X." an essential element thereof.
d. The obligation is suspended until the debtor
244. D borrowed P200,000.00 from C. The debt is
has the means to pay his debt.
payable after 6 months and is secured by a chattel
mortgage on D'S growing crops. A month before due 248. The obligation of a school to provide its students
date, the crops were completely destroyed by Typhoon a safe and secure environment and an atmosphere
"Ondoy." conducing to learning is an obligation arising from:
a. D'S obligation to pay the loan is a. law.
extinguished. b. contract.
b. C may now demand immediate payment of c. quasi-contract.
the loan unless D furnishes another security. d. quasi-delict.
a. c. C must wait for the due date before he
249. These statements are presented to you:
can demand payment because the loss of
the security is without the fault of D. I. There is no delay in obligations not to do.
c. Both the loan obligation and the chattel II. Delay is applicable only to the debtor, never
mortgage are extinguished due to fortuitous to the creditor.
event.
In your evaluation of the foregoing
245. M obtained a loan of P50,000.00 from P. The statements:
loan is evidenced by promissory note executed by M
with G signing as a guarantor of the debt. P assigns the a. Both statements are true.
note to A, A to B, B to C, and C to G. The assignment of b. Both statements are false.
the note to G extinguished c. Only Statement I is true.
d. Only Statement Il is true.
a. both the loan and the guaranty.
b. only the loan. 250. The principle of negotiorum gestio does not
c. only the guaranty. apply:
d. neither the loan nor the guaranty with G now a. When the property or business is not
as the new creditor. neglected or abandoned.
246. M makes an interest-bearing promissory note b. When the officious manager has been tacitly
amounting to P 100,000.00 payable to the order of P. authorized by the owner.
The back of the promissory note contains the following c. In both (a) and (b).
indorsements: P to A, A to B, B to C, and C to H who is d. In neither (a) nor (b).
now in possession of the note. On due date, H goes to 251. A, B and C are indebted to W, X, Y and Z in the
the office of M to collect but he finds R who is trying to amount of P240,000. 00. In this case:
collect the amount on the note based on a power of
attorney supposedly executed in his favor by C. M is
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
a. W can collect P8,000.00 each from A, B and b. C may compel D to make payment before
C. Then, he must give P6, 000.00 each to X, December 31, 2015.
Y and Z. c. Both (a) and (b) are correct.
b. W can collect P2, 000.00 each from A, B d. Both (a) and (b) are incorrect.
and C. Then, he need not give any amount to
256. Refer to the facts in the preceding number.
X, Y and Z.
Assuming that on due date, D has only P50, 000. 00 and
c. W can collect P6,000.00 from either A, B or
he offers this amount to C who is willing to accept it as
C. Then, he need not give any amount to X,
partial payment.
Y and Z, from the amount he collected.
d. W can collect P24,000.00 from either A, B a. The payment shall applied in its entirety to
or C. Then, he must give P6,000.00 each to the principal. D still owes C the interest of
X, Y and Z. P50, 000.00.
b. The payment shall be applied first to the
252. Delia obtained a loan of p50,000.00 from
interest of P50,000.00. The balance of
Corazon payable on January 31. On January 25, Delia
P450,000.00 shall be applied to the
offered to deliver her diamond ring of the same value on
principal; hence, D still owes C P50,000.00
January 31 to Corazon to settle the debt. Corazon
for the principal which will continue to bear
accepted the offer on the same date. Thus, on January
interest.
31, Delia delivered her diamond ring to Corazon. Based
c. The payment of P500,000.00 shall be
on the foregoing facts, which of the following statements
applied proportionately to the principal and
is incorrect?
interest.
a. Delia's loan obligation of P50,000.00 was d. The entire obligation (principal and interest)
extinguished on January 25. is extinguished because C accepted the
b. Delia had an obligation to give the diamond payment without any protest or objection.
ring to C on January 31.
257. D obtained a loan of P from C. The debt' which
c. Delia's loan obligation of P50,000.00 was
is due on December 31, 2015, is secured by chattel
extinguished on January 31 when she
mortgage of D'S brand-new Toyota Innova van. On June
delivered her diamond ring to Corazon.
1, 2015, the van was swept away by flood waters at the
d. Delia's loan obligation of P50,000.00 was
height of Typhoon Olga and could no longer be found.
extinguished by novation.
a. D'S obligation to extinguished because the
253. A, B and C are liable individually and
security thereof was lost due to fortuitous
collectively to X in the amount of P30,000.00. On due
event.
date, X demanded payment from A. However, C is
b. D'S obligation P 1,000,000.00 became
insolvent. In this case:
demandable on June 1, 2015, unless he gives
a. X may collect P20,000.00 only from either another security.
A or B. c. D'S obligation to give P 1,000,000.00 and
b. X may collect P30,000.00 from either A or the chattel mortgage are extinguished by
B. reason of fortuitous event.
c. X may collect from A P 15,000.00 only, and a. d. D'S obligation to give P 1,000,000.00
from B, P15, 000.00 only. subsists, but C cannot demand its payment
d. X may collect from A P 10,000.00 only, and before December 31, 2015.
from B, P10,000.00 only.
258. These statements are presented to you:
254. D obliged himself to give P50,000.00 to C if C
I. Payment is still possible when two persons are
does not fly to the moon.
debtors and creditors of each other.
a. The obligation is immediately demandable. II. Payment is impossible when a person is both the
b. Both the obligation and the condition are debtor and the creditor of the same obligation.
void.
In your evaluation of the foregoing statements:
c. The condition of the obligation is Physically
impossible a. Both statements are true.
d. The obligation becomes demandable at some b. Both statements are false.
future time. c. Only Statement I is true.
d. Only Statement I false.
255. On January I, 2015, D borrowed The P50,
000.00 from and C with interest at 10% per annum the 259. These statements. are presented to you:
interest are due on December 31, 2015.
I. A quasi-contract is an implied contract.
a. D may compel C to accept payment before II. There is no delay in obligations not to do.
December 31, 2015.
In your evaluation of the foregoing statements:
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
a. Both statements are true. d. The debtor is totally released from his
b. Both statements are false. liabilities
c. Only Statement I is true.
265. Which of the following is not a feature of
d. Only Statement I false.
dacion en pago?
260. D borrowed P50,000.00 from C. On due date, D
a. There may be two or more creditors
offered to give his ring, his bracelet or his necklace in
involved.
payment of the debt five days from the due date of the
b. The debtor must be insolvent.
original obligation. C accepted the offer. Two days
c. Not all the properties of the debtor are
before the new due date, D'S ring was lost through his
involved.
fault.
d. The debtor is generally released from his
a. D'S new obligation is a facultative obligation/ s.
obligation.
266. D borrowed P 10,000.00 from C. On due date, C
b. D is not obliged to pay damages to C for the
was already insane. Nonetheless, D gave C P 10,000.00
loss of the ring due to his fault.
to settle the debt. When C's guardian learned of the
c. The right of choice as to which thing will be
payment made by D, C was found to have only
delivered belongs to C.
P3,000.00 left in his wallet and that he had lost P
d. The loss of the ring deprived D of the right
1,500.00 in a gambling game, and used P5,500.OO to
of choice.
buy his food. In this case:
261. The waiver of an action for fraud is valid in the
a. Payment is valid only up to P3,000.00.
case of:
b. Payment is valid only up to P8,500.00.
a. A future fraud. c. Payment is valid up to P 10,000.00.
b. B. past fraud. d. The total payment is not valid because C
c. C. both (a) and (b) was incapacitated at the time, he received
d. D. in neither (a) nor (b). the payment.
262. D is indebted to C for P100,000 which is already 267. Consignation, without any tender of payment,
due. D offers to give a certified check to C to settle the will release the debtor from liability in the following
debt. cases, except when:
a. If C refuses to accept the check, D may a. The creditor is absent or unknown, or does
resort to its consignation to settle the not appear at the place of payment.
obligation. b. The creditor is capacitated to receive
b. If C refuses to accept the check, D may payment.
replace the check with 100,000 pieces of PI . c. Without just cause, the creditor refuses to
00 coin and compel C to accept it. give a receipt.
c. If C refuses to accept the check, D may d. Two or more persons claim the same right to
replace the check with 5,000 pieces of collect.
P20.OO bill, and if C refuses to accept it, D
268. D owes C P20,000.00 payable on or before
may consign the payment.
March 31, 20150 C is obliged to pay D P20,OOO.OO on
d. If C accepts the certified check, D'S
March 15, 2015. As a result, which of the following is
obligation is automatically extinguished.
incorrect?
263. Which of the following statements concerning
a. C may claim compensation on March 15,
facultative obligation is correct?
2015.
a. Two or more prestations are due. b. D may claim compensation on March 15,
b. The right to make the substitution belongs to 2015.
the debtor only. c. may claim compensation on March 31, 2015
c. The loss of the substitute due to the fault of if his debt to C, and D'S debt to him,
the debtor will make him liable for damages. remained unpaid as of such date.
d. The loss of the principal thing due to d. D may claim compensation on March 31,
fortuitous event will make the debtor 2015 if C's debt to him, and his own debt to
obliged to deliver the substitute. C, remained unpaid as of such date.
264. Which of the following is not a feature of 269. D owes C P30, 000.00. due on April 1, 2015. C
payment by cession? owes D compensation may possibly take place today if
today is February 14, 2015?
a. There is a plurality of creditors.
b. The debtor must be insolvent. a. Voluntary
c. All the debtor's properties are generally b. Legal
involved in the cession c. Facultative
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
indicate in the receipt that he issued to D which debt was 1. Solutio indebiti
being paid' Which debt is being paid? 2. Obligation with a penal clause
3. Delegacion
a. The debt due on February 1 amounting to
4. Real right
P4,000.00 only.
5. Alternative obligation
b. The debt due on February 20 amounting to
6. Ex die
P4,000.00 only.
7. Passive solidarity
c. To the debts due on February 1, February 5
8. Joint obligation
and February 10 proportionately at
9. Personal right
PI,000.00, PI,750.00, and PI,250.00
10. Efficient cause
respectively.
11. Determinate thing
d. To all the debts proportionately at P800.00,
12. Payment by cession
P1,4000.00, P1,000.00, and P800.00,
13. Fortuitous event
respectively.
14. Day certain
282. The young and other products of animals, 15. Active solidarity
produced with the intervention of human labor are 16. Application of payment
considered as: 17. Dation in payment
18. Potestative condition
a. civil fruits 19. Accessories
b. industrial fruits 20. Prestation
c. natural fruits 21. Natural fruits
d. accessions 22. Penal clause
283. If two or more persons claim the same right to 23. Unilateral obligation
collect from the debtor, the debtor's appropriate remedy 24. Subrogation
is: 25. Action pauliana
26. Obligation
a. tender of payment. 27. Mora accipiendi
b. consignation. 28. Positive condition
c. payment by cession. 29. Inflation
d. dation in payment. 30. Indivisible obligation
31. Solidary obligation
284. D promised to deliver a specific horse to C on
32. Negligence
October 31, 2015, with the stipulation that he will give C
33. Expromision
100 grams of "shabu" as penalty if he fails to deliver the
34. Industrial fruits
horse on the said date. Which obligation is void?
35. Reciprocal obligation
a. The principal obligation only. 36. In diem
b. The penalty only. 37. Suspensive condition
c. Both the principal obligation and the 38. Condonation
penalty. 39. Deflation
d. Neither the principal obligation nor the 40. Facultative obligation
penalty. 41. Negative condition
42. Negotiorum gestion
285. D is a debtor of C for P20,000.00. The debt is 43. Condition
secured by a pledge of D'S diamond ring which is in C's 44. Payment
possession. Before the due date, C voluntarily returned 45. Legal tender
the diamond ring to D. Which was extinguished by the 46. Generic thing
return of the ring? 47. Civil fruits
a. Both the debt of P20,000.00 and the pledge of 48. Resolutory condition
the diamond ring. 49. Consignation
b. The debt of P20,000.00 only. 50. Confusion
c. The pledge of the diamond ring only. Statements
d. Neither the debt of P20,000.00 nor the pledge of
the diamond ring is extinguished. A. The happening thereof extinguishes the
obligation.
B. The reason why the obligation exists.
TEST II – MATCHING TYPE. Indicate your answers C. Several prestations are due but the complete
by writing the letter representing the statement or phrase performance of one of them extinguishes the
that best describes, defines or explains the numbered obligation.
items. D. Assumption of the obligation by a third person
upon the initiative of the debtor.
Terms E. Return of what has been paid by mistake.
Page 34 of 37
OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
11. In an obligation to give an indeterminate thing, the 32. When there are two or more debtors and/or two or
loss or destruction of anything of the same kind will more creditors in one and the same obligation, the
extinguish the obligation if the cause of the loss is a obligation is presumed to be a solidary obligation.
fortuitous event. 33. Solidarity may exist although the creditors and
12. Acts of men such as armed robbery or piracy are debtors may not be bound in the same manner and
considered fortuitous events if they occur by the same periods and conditions.
independently of the debtor's will. 34. Where an instrument containing the words "I
13. As a general rule, rights acquired in virtue of an promise to pay", is signed by two or more persons,
obligation are not transmissible. they are deemed to be jointly and severally liable.
14. An obligation subject to a resolutory condition is 35. In a joint indivisible obligation, a demand made by
demandable at once. one of the joint creditors against all the joint debtors
15. An obligation which is subject to a suspensive is a valid demand.
condition that is potestative on the part of the debtor 36. A solidary debtor who obtains remission of the
at the same time, is valid. whole obligation is entitled to reimbursement from
16. An obligation where the debtor binds himself to pay his co debtors.
when his means permit him to do so is a conditional 37. A solidary creditor may assign his rights in the
obligation. obligation the consent of the other creditors.
17. An obligation which is demandable upon the death 38. If an insolvent solidary debtor cannot reimburse his
of a person is an obligation with a period. share to the debtor paying the obligation, such
18. The condition not to do an impossible thing shall be share shall be borne by all his co-debtors in
considered as not having been agreed upon. In such proportion to the debt of each.
case, the obligation is immediately demandable. 39. A joint creditor in a joint indivisible obligation may
19. The condition that some event happen at a validly renounce or condone the whole obligation.
determinate time shall extinguish the obligation as 40. In obligations with a penal clause, the penalty shall
soon as the time expires or it has become indubitable substitute the indemnity for damages and the
that the event will not take place. payment of interests, if there is no stipulation to the
20. The condition shall be deemed fulfilled if the debtor contrary.
voluntarily prevents its fulfillment. 41. The nullity of the penal clause in an obligation
21. The effects of a conditional obligation to give, once carries with it the nullity of the principal obligation.
the condition has been fulfilled shall retroact to the 42. As a rule, the creditor may demand fulfillment of the
day of the constitution of the obligation. obligation and the penalty at the same time.
22. A thing, although it still physically exists, may be 43. Payment means not only the delivery of money but
considered lost if it goes out of commerce. also to the performance of the obligation in any
23. In an obligation to give a determinate thing which is other manner.
subject to a suspensive condition, the deterioration 44. A third person who has an interest in the fulfillment
of the thing without the debtor's fault shall render of the obligation, such as a guarantor, may compel
the debtor liable for damages. the creditor to accept payment.
24. A condition may refer to a past event unknown to 45. Payment made in good faith by the debtor to a
the parties. person in possession of the credit releases him from
25. If the thing is improved at the expense of the debtor liability.
before the fulfillment of a suspensive condition, the 46. Payment made for an obligation which is interest-
debtor may demand reimbursement of such bearing must first be applied to the principal before
expense from the creditor. the interest.
26. Whenever a period is designated in an obligation, it 47. Payment to an incapacitated creditor shall be valid if
shall be presumed to have been established for the he has kept the payment.
benefit of the debtor. 48. The debtor of a thing may compel the creditor to
27. The debtor does not lose the right to make use of the accept a different one if the latter is more valuable
period if the security that he has given is lost due to than that which is due.
a fortuitous event. 49. If an obligation is physically divisible, the debtor
28. The period in an obligation always refers to the may compel the creditor to accept partial payments.
future. 50. When the debt is in part liquidated and part
29. In alternative obligations, the right of choice belongs unliquidated the creditor may demand and the debtor
to the creditor unless it has been expressly granted to may affect the payment of the former without
the debtor. waiting for the liquidation
30. In alternative obligations, the creditor may be 51. The debtor may compel the creditor to accept a
compelled to receive part of one and part of another certified check as payment since the bank guarantees
undertaking. the check to be covered with sufficient funds.
31. In a facultative obligation, the loss of the substitute 52. Payment by a third person who does not intend to be
through a fortuitous event before the substitution has reimbursed by the debtor shall be deemed to be a
been made by the debtor, shall have effect on the donation which requires the consent of the debtor.
debtor's obligation to deliver the principal thing. However, even if the debtor does not give his
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OBLIGATIONS – DAIGNOSTIC EXERCISES Notes in Business Law by Fidelito R. Soriano
consent payment shall nevertheless be valid with 75. When the principal obligation is extinguished as a
respect to the creditor consequence of novation, accessory obligations are
53. Payment may be applied to a debt not yet due if the extinguished except if they may benefit third persons
term was constituted in favor of the party making the who did not give their consent.
application.
54. For dacion en pago to apply, the debtor must be
insolvent.
55. In payment by cession, the creditors become the
owners of the properties abandoned by the debtor for
the payment of his debts.
56. Whenever the thing is lost while in the possession of
the debtor, it shall be presumed to have been lost
through his fault.
57. The debtor shall be released totally from his debts
when he assigns his properties to his creditors.
58. Consignation without tender of payment is sufficient
if two or more persons claim the same right to
collect.
59. Before the court has declared that the consignation
has been properly made or the creditor has accepted
the consignation, the debtor may withdraw the sum
or thing deposited in court as a matter of right.
60. When the debt of a thing certain proceeds from a
criminal offense, the debtor shall be exempted from
the payment of the price if the thing is lost through a
fortuitous event.
61. In obligations to do, the debtor's obligation is
extinguished if the prestation becomes physically
impossible due to his fault.
62. The condonation or remission of an obligation must
be accepted in order for it to be extinguished.
63. Merger which takes place in the person of the
principal debtor or creditor extinguishes the
obligation of guaranty.
64. A debt which consists in sum of money and another
debt which consists in a consumable thing are
extinguished by legal compensation as long as both
debts have the same amount and are already due.
65. The condonation of a debt in money exceeding
P15,00.00 to be valid requires that the condonation
and the acceptance must be in public instrument.
66. The remission of the principal obligation carries
with it the remission of the accessory obligation.
67. Confusion which takes place in the person of the
guarantor extinguishes the principal obligation
68. The parties may agree upon the compensation of
debts that are not yet due.
69. Legal compensation takes place by operation of law
even if the debts are payable at different places.
70. Compensation cannot be set up against a creditor
who has a claim for support by gratuitous title.
71. Novation may take place by changing the object or
principal conditions of the obligation.
72. If the old obligation is void, the novation will still be
valid if the new obligation is valid.
73. If the new obligation is void, the original one shall
subsist, unless the parties intended that the old
obligation shall be extinguished in any event.
74. Conventional subrogation requires the consent of the
original parties and the third person.
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