Answer 6 Answer 6: Accounting (Green Valley College Foundation, Inc.) Accounting (Green Valley College Foundation, Inc.)
Answer 6 Answer 6: Accounting (Green Valley College Foundation, Inc.) Accounting (Green Valley College Foundation, Inc.)
Answer 6
Law 1 (Diaz)
1 . A is obliged to deliver a Rolex watch to B on December 1, 2009.
A. Before December 1, 2009, A has to take care of the Seiko watch with the diligence of a
good father of the family.
B. In case of loss of the Seiko watch by negligence of A, A is liable in damages.
C. A is not required to exercise the diligence of a good father of a family.
D. The obligation of A to B is not valid.
A. True; False
B. False; True
C. Both statements are true.
D. Both statements are false.
8 . A source of liability is :
A. Dolo causante
B. Pare delicto
C. Dolo incidente
D. Culpa aquiliana
10 . Statement 1. If the law or contract does not state the diligence which is to be observed in
the performance of the obligation, neither party is liable for negligence.
Statement 2. If a party is negligent and at the same time in bad faith, he shall be liable for
damages by reason of fraud.
A. True; False
B. False; True
C. Both statements are true.
D. Both statements are false.
11.
A. This is an obligation with a period.
B. This is not valid because the performance depends solely upon the will of B.
C. This is a pure obligation.
D. This is an obligation with a potestative period.
12 . A binds himself to give B, P1,000 if B sells A’s car and P2,000 if B will kill C.
A. The obligation is null and void.
B. The obligation is partly valid and partly null and void.
C. The obligation is null and void because the first condition is potestative and the second is
contrary to law.
D. The obligation is partly subject to a period and partly conditional.
14 . A owes B P10,000 to be paid after one year. As security A mortgages his car in favor of B.
If before due date the car is lost by fortuitous event:
A. A does not lose the benefit of the period because no one shall be liable for fortuitous
event.
B. A does not lose the benefit of the period if he gives another security equally
satisfactory.
C. A does not lose the benefit of the period because it was not stipulated.
D. A does not lose the benefit of the period because he is not in delay.
D. The liability of the first infractor shall be equitably tempered by the courts.
18 . Statement 1. If the obligation does not fix a period, the court shall fix the period.
Statement 2. Once a period is fixed by the courts, the parties cannot change it.
A. True; False
B. False; True
C. Both statements are false.
D. Both statements are true.
19 . Statement 1. In an alternative obligation either party may choose as to who has the right of
choice.
Statement 2. If it is the creditor who has the right of choice, he loses his choice if all the
prestations are alternatively lost by fault of the debtor.
A. True; False
B. False; True
C. Both statements are true.
D. Both statements are false.
20 . A and B by their joint act of negligence caused damage to X in the sum of P 10,000.
A. The obligation is joint because A and B acted jointly.
B. The obligation is joint because there is plurality of debtors.
C. The obligation is solidary because the law so provides.
D. The obligation is solidary because either A or B is liable for the full amount.
1. Every obligation whose performance does not depend upon a future or uncertain event, or
upon a past event unknown to the parties, is demandable at once. This refers to:
A. Divisible and Indivisible Obligations B.
Joint and Solidary Obligtions
C. Obligations with a Period.
D. Pure and conditional Obligations
No1(May1985)
2 . This person is liable for the loss of the subject matter by fortuitous event.
A. Creditor C. Both A and B B. Debtor D.
None of them.
No2(Nov1985)
3. A is obliged to give B his Mitsubishi, 4-door sedan Lancer with plate number ABC 123 on
September 30, 2009. On October 10, 2009, A did not yet deliver the car which was totally
destroyed by an earthquake on such date. Is A still liable?
A. No, the obligation is extinguished. The specific thing was lost due to fortuitous event
and no demand to deliver was made by B.
No2(Oct1989)
4 . In a sale, the buyer is entitled and has the right to the fruit of the thing sold from the time :
A. The obligation to deliver the thing sold arises.
B. The sale is perfected.
C. The thing sold is delivered.
D. The fruit of the thing sold is delivered. No1(may1990)
6. One is not a requisite in order that obligation shall be extinguished by loss or destruction of
the thing due:
A. When the thing is lost without the fault of the debtor.
B. When the thing lost is generic.
C. When the thing is lost before the debtor has incurred in delay.
D. When the thing lost is specific. No14oct1994
7. The obligation is demandable on the date of the obligation and shall continue in force up to
the arrival of the day certain.
A. Resolutory period C. Indefinite period
B. Suspensive period D. Legal period
No1may1995
Contracts
1. This kind of defective contract refers to that contract which is validly agreed upon because all
the essential elements exists, but Courts can nullify it when there is damage or prejudice to one
of the parties to a third person. Its enforcement would cause injustice by reason of some external
facts.
A. Voidable Contract C. Rescissible Contract
B. Void or inexistent Contract D. Unenforceable Contract
5. It is a contract wherein a person binds himself to a creditor to fulfill the obligation of the
principal debtor in case the latter should fail to do so:
A. Guaranty C. Pacto Comisorio
B. Suretyship D. None of the three
6. Contracts are effective and binding only between the parties, their assigns and their heirs.
Three of the following enumeration are exceptions as provided by law which does not belong to
the exception?
A. Where there is stipulation in favor of a third party.
B. Where one of the parties to the contract dies and thereafter a suit is filed on the
basis of the contact.
C. Where the obligations arising from contract are not transmissible by their nature.
D. Where the obligations arising from the contract are not transmissible by stipulation or by
provision of law.
7. A solidary obligation is one in which each of the debtors is liable for the entire obligation or
debt, and each of the creditors is entitled to the entire credit. Obligations shall also be considered
solidary under the three following exceptions. Which does not belong to the exception? A.
When solidary is expressly stipulated in the obligation.
B When the prestation is indivisible and there are two or more debtors and creditors.
C. When the law expressly provides solidarity.
D. When solidarity is required from the nature of the obligation.
9. A and B who are both unemancipated minors entered into a contract. The contract entered into
by and between them is:
A. Rescissible C. Voidable
B. Unenforceable D. Void
11. The creditor shall have a right to indemnify for damages when, through the fault of the
debtor, all the things which are alternatively the object of the obligation have been lost or
compliance of the obligation has become impossible. The indemnity shall be fixed taking as a
basis
A. The value of the least expensive thing
B. The value of the most expensive thing
C. The value of the last thing which disappeared
D. The value of the first thing which disappeared
12 . Mr. Santos sold his car to Mr. Garcia for P150,000.00. No date is fixed by the parties for
the performance of their respective obligations. The obligation of Mr. Santos is: A. To
deliver the car immediately as there is a perfected contract
B. To deliver the car upon the payment by Mr. Garcia of P50,000.00
C. To rescind the contract since there is no time fixed for the delivery and payment of the
car.
D. To deliver the car within a reasonable time after the demand of Mr. Garcia to deliver.
13 . When the subject matter of a contract is lost through fortuitous event, who is liable?
14 . The buyer of a thing has the right to the fruits of the thing :
A. From the time the thing bought is delivered
B. From the time the sale is perfected
C. From the time the obligation to deliver the thing bought arises.
D. From the time the fruits are delivered.
16. A contract executed by two (2) parties and one (1) of the parties in not capable of giving
consent is:
A. Voidable C. Void B. Rescissible D.
Unenforceable
17 . Three (3) of the following contracts are void. Which one is valid?
A. Oral contract of partnership of three (3) partners and capital contribution is more
than P3,000.00 in cash.
B. Written contract contemplating impossible services.
C. Oral contract of partnership where real estate is contributed as capital.
D. Agent’s authority to sell property given orally.
19. When the period is “on or before a date”, the debtor has the benefit of the period. The benefit
is lost and the obligation becomes demandable when:
A. The debtor attempts to abscond
B. After contracting the obligation, the creditor suspects the debtor to becoming insolvent
C. The guarantee given by the creditor is not acceptable to the creditor
D. Demand by the creditor could be useless
22. The action to annul a voidable contract, such as a contract where one of the parties is
incapable of giving consent to the contract, is extinguished by:
A. Novation C. Ratification
B. Rescission D. Answer not given
23. A contract or receipt for the transport of goods and their delivery to the person named therein to
order or bearer is a:
A. Warehouse receipts C. Bill of lading
B. Dock warrant D. Answer not
given
24. Cecilio kidnapped and tortured Eduardo for refusing to sell his (Eduardo’s) land to Cecilio.
Eduardo who could no longer bear the physical pains inflicted upon him signed a document of
sale in favor of Cecilio. This sale is
A. Void C. Valid B. Voidable D. Answer not given
27. In an obligation where only one (1) prestation has been agreed upon, but to extinguish the
obligation the debtor is allowed and does render another substitute, the obligation is:
A. Facultative obligation C. Alternative obligation
B. Simple obligation D. Conjoint obligation
28. Mr. Gamboa owes Mr. Evangelista P100,000. Gamboa knows that on maturity date, he will
not be able to pay Evangelista, and in order to prevent attachment of his property by Evangelista,
Gamboa, before maturity of his debt, executes a contract pretending to sell to Mr. Santiago his
property. Which of the following statements is correct/ A. The contract is not valid for lack of
consideration
B. The contract is binding between Gamboa and Santiago
C. The contract being simulated and executed to defraud Evangelista is void.
D. Mr. Evangelista can seek rescission of the fictitious contract.
29 . A owes solidary creditors XYZ P10,000. There is remission of the debts when :
A. X borrows P10,000 from A.
B. X waives the whole obligation of P10,000 to A.
C. Z makes a will giving the P10,000 debt to A as legacy.
D. Y tells A that instead of paying P10,000, A shall deliver a ring to Y.
Exercises
34 . Statement 1. If the law or contract does not state the diligence which is to be observed in the
performance of the obligation, neither party is liable for negligence.
Statement 2. If a party is negligent and at the same time in bad faith, he shall be liable for
damages by reason of fraud.
36 . A binds himself to give B, P1,000 if B sells A’s car and P2,000 if B will kill C.
A. The obligation is null and void.
B. The obligation is partly valid and partly null and void.
C. The obligation is null and void because the first condition is potestative and the second is
contrary to law.
D. The obligation is partly subject to a period and partly conditional.
37. A is obliged to deliver his TV set to B on December 1, 2010. Subsequently, A and B agreed
that A shall deliver his radio as a substitute. A. The obligation is facultative.
B. This is real novation.
C. The obligation is extinguished by payment.
D. If the radio is lost by fortuitous event, the obligation is extinguished.
38. In obligations with a penal clause, the creditor can recover damages, and interest apart from
the penal clause:
A. When the debtor refuses to pay the obligation.
B. When the debtor is guilty of fraud.
C. All of the above.
D. None of the above.
39. Statement 1. The nullity of the penal clause does not carry with it the nullity of the
principal obligation.
Statement 2. The nullity of the principal obligation carries with it the nullity of the penal
clause.
47. Thru some mistake on the part of a bank personnel, A was given One Million Pesos instead
of One Thousand Pesos. This situation will be governed by the provisions on
A. Contracts C. Quasi-delicts
B. Quasi-contracts D. Law
4. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his
co-debtors.
A. If such payment was made before the obligation is due.
B. If such payment was made after obligation has prescribed or become illegal
C. If such payment was made in compliance with the demand made to him by all the
creditors
D. If such payment was made after obligation has become due and demandable and notice
of payment was made only to him.
6. A obliges himself to pay X P100,000 in 30 days plus a penalty of P20,000 if A fails to to pay
the obligation in due time. A failed to pay the obligation in 30 days. X can demand from A
A. The principal of P100,000 plus P20,000 penalty
B. The principal of P100,000 plus P20,000 penalty plus legal interest.
C. The principal of P100,000 plus legal interest
D. The principal of P100,000 plus P20,000 penalty, plus legal interest, plus damage.
7 . A owes X P50,000 payable on or before June 30, 2010. S who is not a party to the contract
and without the consent and against the will of A paid X the P50,000 on March 1, 2010 when the
prevailing rate of interest was 12% per annum.
A. S can ask reimbursement from A in the amount of p50,000 plus 12% interest from March
1 to June 30, 2010.
B. S can ask reimbursement from A in the amount of P50,000
C. S cannot ask reimbursement from A because the payment by S is without the consent and
against the will of A.
D. S can ask refund from X because the payment by S was against the will of A.
H de Leon
1. In order that an obligation may be extinguished by the loss of the thing, the following
requisites must be present:
I. The obligation to deliver a specific or determinate thing;
II. The loss of the thing occurs without the fault of the debtor;
III. The debtor is not guilty of delay
A. I and II only C. I, II and III
B. II and III only D. I and III only
2. There are cases, when the loss of the specific thing even in the absence of fault and delay will
not exempt the debtor from liability. They are:
6. Article 1251 gives the rules regarding the place for the payment of an obligation without
prejudice to venue under the Rules of Court.
I. If there is a stipulation, the payment shall be made in the place designated.
II If there is a stipulation and the thing to be delivered is specific, the payment shall be
made at the place where the thing was, at the perfection of the contract.
III. If there is no stipulation and the thing to be delivered is generic, the place of payment
shall be the domicile of the debtor.
A. I, II and III C. II and III only
B. I and II only D. I and III only
8 . The designation of the debt to which should be applied the payment made by a debtor who
has various debts of the same kind in favor of one and the same creditor.
A. Dation en pago C. Application of payment
B. Payment by cession D. Consignation
9. The assignment or abandonment of all the properties of the debtor for the benefit of his
creditors in order that the latter may sell the same and apply the proceeds therof to the
satisfaction of their credits.
A. Dation en pago C. Application of payment
B. Payment by cession D. Consignation
10. Is the act of depositing the thing or amount due with the proper court when the creditor does
not desire or cannot receive it, after complying with the formalities required by law.
A. Dation en pago C. Application of payment
B. Payment by cession D. Consignation
11 . The creditor, in addition to the penalty, may recover damages and interests :
I. When so stipulated by the parties
II. When the obligor refuses to pay the penalty, in which case the creditor may recover legal
interest thereon.
III. When the obligor is guilty of fraud in the fulfillment of the obligation, in which case the
creditor may recover damages caused by such fraud.
A. I and II only C. I, II and III
B. II and III only D. I and III only
12. I. As a general rule, in an obligation with a penal clause, the penalty takes the place of the
indemnity for damages and the payment of interests in case of non-compliance.
II. Proof of actual damages suffered by the creditor is necessary in order that the penalty
may be enforced.
A. True; True C. True; False
B. False; True D. False; False
13 . I. The nullity of the penal clause does not carry with it that of the principal obligation.
II. The nullity of the principal obligation carries with it that of the penal clause.
A. True; True C. True; False
B. False; True D. False; False
14. I. The creditor is not bound to accept payment or performance by a third person who has no
interest in the fulfillment of the obligation, unless there is a stipulation to the contrary.
II. Whoever pays for another may demand from the debtor what he has paid, except that if
he paid without the knowledge or against the will of the debtor, he can recover only
insofar as the payment has been beneficial to the debtor.
A. True; True C. True; False
B. False; True D. False; False
15. I. Payment made by a third person who does not intend to be reimbursed by the debtor is
deemed to be a donation, which requires the debtor’s consent. But the payment is in any
case valid as to the creditor who has accepted it.
II. Whoever pays on behalf of the debtor without the knowledge or against the will of the
latter can compel the creditor to subrogate him in his rights, such as those arising from a
mortgage, guaranty, or penalty.
A. True; True C. True; False
B. False; True D. False; False
16. I. Payment shall be made to the person in whose favor the obligation has been constituted,
or his successor in interest, or any person authorized to receive it.
II. Payment in good faith to any person in possession of the credit shall not release the
debtor.
A. True; True C. True; False
B. False; True D. False; False
17. In order that an obligation may be extinguished by the loss of the thing, the following
requisites must be present:
I. The obligation is to deliver a specific or determinate thing.
II. The loss of the thing occurs without the fault of the debtor
III. The debtor is not guilty of delay.
IV. The law so provides.
18. I. Condonation or remission is essentially gratuitous, and requires the acceptance by the
obligor. It may be made expressly or impliedly.
II. One and the other kind shall be subject to the rules which govern inofficious donations.
Express condonation shall, furthermore, comply with the forms of donations.
A. True; True C. True; False
B. False; True D. False; False
19. I. The renunciation of the principal debt shall not extinguish the accessory obligations; but
the waiver of the latter shall leave the former in force.
II. It is presumed that the accessory obligation of pledge has been remitted when the thing
pledge has been remitted when the thing pledged, after its delivery to the creditor, is
found in the possession of the debtor, or of a third person who owns the thing.
A. True; True C. True; False
B. False; True D. False; False
23. I. Contracts are perfected by mere consent, and from the moment the parties are bound not
only to the fulfillment of what has been expressly stipulated but also to all the
consequences which, according to their nature, may be keeping with good faith, usage
and law.
II. Real contracts, such as deposit, pledge and commodatum, are not perfected until the
delivery of the object of the obligation.
A. True; True C. True; False
B. False; True D. False; False
24. I. No one may contract in the name of another without being authorized by the latter, or
unless he has by law a right to represent him.
II. A contract entered into in the name of another by one who has no authority or legal
representation, or who has acted beyond his powers, shall be enforceable, unless it is
ratified, expressly or impliedly, by the person on whose behalf it has been executed,
before it is revoked by the other contracting party.
27. I. All things which are not outside the commerce of men, excluding future things, may be
the object of a contract.
II. All rights which are not intransmissible may also be the object of contracts.
III. All services which are not contrary to law, morals, good customs, public order, or public
policy may likewise be the object of a contract.
A. True; True; True C. True; False; True
B. False; True; True D. False; False; True
28 . In order that service may be the object of a contract, the following requisites must concur
: I. The service must be within the commerce of men. II. It must not be impossible,
physically or legally.
III. It must be determinate or capable of being made determinate.
A. I and II only C. I, II and III
B. I and III only D. II and III only
29. I. Although the cause is not stated in the contract, it is presumed that it exists and is lawful,
unless the debtor proves the contrary.
II. Except in cases specified by law, lesion or inadequacy of cause shall not invalidate a
contract, unless there has been fraud, mistake or undue influence.
A. True; True C. True; False
B. False; True D. False; False
31. Sale; lease of thing; partnership are examples of what classification of contract according to
cause:
A. Onerous C. Gratuitous
B. Remuneratory D. Bilateral
32. Commodatum; pure donation; guaranty or suretyship unless there is a stipulation to the
contrary; mortgage given by a third person to secure an obligation of a debtor unless a
consideration is paid for such mortgage are examples of what classification of contract
according to cause:
A. Onerous C. Gratuitous
B. Remuneratory D. Bilateral
33.