Abb Business Law Taxation Reviewer 2015

BUSINESS LAW TAXATION REVIEWER D 1. This source of obligations which is a rule of conduct, just and obligatory, promulgated by legitimate authorities for common good, benefit and observance. a. contract b. Quasi-contracts c. Delicts d. Law A 2. A juridical necessity to give, to do or not to do. a. Civil Obligations b. Natural Obligation c. Moral Obligation D. Social Obligation A 3. They give right of action to compel their performance. a. Civil Obligation

b. moral Obligation

c. Natural Obligation d. Social Obligations A 4. The oblige has a right to enforce the obligation against the obligor in a court of law. a. Civil Obligation b. moral Obligations C. Natural Obligations D. Social Obligations C. 5. This is based on equity and justice. a. Civil Obligations b. Moral Obligations c. Natural Obligations d. Social obligations B 6. The person is whose favor the obligation is constituted a. Obligor b. Obligee c. Passive Subject d. debtor A 7. Synonymous to oblige 1. Creditor 2. Active Subject 3. Debtor 4. Passive Subject a. 1 and 2 b. 1 and 4 c. 2 and 3 d. 1 and 4 B 8. The person who has the duty of giving, doing or not doing.

a. Obligee d. Creditor

b. Obligor

c. Active Subject

D 9. Synonymous to obligor 1. Creditor 2. Active Subject 3. Debtor 4. Passive Subject a. 1 and 2 b. 1 and 4 c. 2 and 3 d. 3 and 4 A 10. The object or subject matter of the obligation a. prestation b. Vinculum c. Active subject d. Passive Subject D 11. The efficient cause or juridical tie why the obligation exists. a. Active Subject b. Passive Subject c. Prestation d. Viculum B 12. The duty not to recover what has voluntarily been paid although payment was no longer required a. civil Obligation b. Natural Obligation c. moral Obligation d. juridical Obligation A 13. The following are sources of obligations derived from law, except a. Contracts b. Quasi- Contract c. Delicts d. Quasi – delicts B 14. Cannot be enforced by court action and depend exclusively upon the good conscience of the debtor a. Civil Obligation b. Natural Obligation C. Moral obligation d. Social Obligation D 15. A owes B P1,000 A, knowing that the debt has prescribed nevertheless, still pays B. Can A recover what he voluntarily paid? First answer: Yes, because B has no to demand the payment effected by A Second answer: No, the payment extinguished the natural obligation a. both answers are correct c. Only the first is correct b. both answers are wrong d. Only the second is correct

A 16. The duty to pay taxes and to support one’s family are obligations arising from a. Law b. Contracts c. Quasi – Contracts d. Delicts B 17. The obligations of husband and wife to render annual help and support arises from a. Contract b. Law c. Quasi – contract d. Quasi – Delict B. 18. A supports B, a minor because B’s father refuses to support B. The father is obliged to reimburse A. the source of obligation is a. Contract b. Quasi – Contract c. Delict

d.

Quasi – Delict B 19. A juridical relation resulting from a lawful, voluntary, and unilateral act and which has for its purpose the payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of another A. Contract b. Quasi – Contract c. delict d. Quasi – delict C 20. When a person voluntarily takes charge of another’s abandoned business or property without the owner’s authority where reimbursement must be made for necessary and useful expenses. a. Quasi – Contract b. Quasi – delict c. Negotiorum gestio d. Solutio Indebti D 21. When something is received when there is no right to demand it, and it was unduly delivered thru mistake, the recipient has the duty to return it a. Quasi – contract b. Quasi delict c. Negotiorum gestio d. Solutio Indebti D 22. A quasi contract is an implied contract A defendant who is acquitted in a criminal case is no longer liable civilly a. true, true b. true, false c. false, true d. false, false B 23. Tort or culpa aquiliana is a. Quasi – contract b. Quasi – delict c. Negotiorum gestio d. Solutio indebti

B 24. A fault or ast or omission of care which causes damage to another, there being no pre-existing contractual relations between the parties a. Quasi – contract b. Quasi – delict c. Negotiorum gestio

d. Solutio indebti

B 25. Omission of the diligence which is required by the circumstances of person, place and time a. ignorance b. negligence c. impotence d. Insanity D 26. Unless the law or the stipulation of the parties require another standard of care, every person obliged to give something is also obliged to take care of it with the proper diligence a. Observing utmost care c. Of a father of a good family b. Observing extraordinary care d. Observing ordinary diligence A 27. Ordinary diligence is a. Diligence of a good father of a family c. Diligence required by law b. extraordinary diligence d. Diligence of a father of a good family D 28. The creditor has a right to the fruits of the thing a. From the time the obligation to deliver it arises c. From the time there is meeting of the minds b. From the time the fruits have been delivered d. From the perfection of the contract A 29. From the time the fruits have been delivered, the creditor shall acquire a. Real right b. personal Right c. moral right d. inchoate right A 30. If A sells to B a fountain pen, the giving by A to B of the fountain pen is a. Actual tradition b. Constructive delivery c. Symbolical tradition d. Traditio longamanu

Items 31-35 A kind of constructive delivery whereby: A 31. Thre is delivery when the keys of a warehouse are given a. tradition simbolica c. tradition brevi-manu b. Traditio longa-manu d. Traditio brevi-manu B 32. There is delivery by mere consent or the pointing out of the best a. Traditio simbolicqa c. Traditio brevi manu b. Traditio longamanu d. Traditio constitutom pessessorium C 33. A possessor of athing not as an owner, becomes the possessor as owner a. Traditio simbolicqa c. Traditio brevi manu b. Traditio longa- manu d. Traditio constitutom pessessorium D 34. A possessor of a thing as an owner retains possession no longer as an owner, but income other capacity a. Traditio simbolicqa c. Traditio brevi manu b. Traditio longamanu d. Traditio constitutom pessessorium C 35. The opposite of brevi – manu a. Longa – manu c. Constitution possessorium b. Simbolica d. Quasi – tradition B 36. If a thing is capable of particular designation a. Gneric b. Specific c. determine d. Indeterminable A 37. If a thing refers to a class to a genus and cannot be pointed out with particularity a. Gneric b. Specific c. determine d. Indeterminable C 38. A wife was about to deliver a child. Her parents brought her to the hospital. Who should pay the expenses for medical attendance? Answer 1- The husband, because it his duty to support his wife and support includes medical attendance. Answer 2- The parents, because they were the persons who brought the “wife” to the hospital

a. Both answers are correct c. Only the first is correct b. Both answers are not correct d. Only the second is correct D 39. The following are kinds of fruits of an obligation, except a. natural b. industrial c. civil d. penal A 40. Spontaneous products of the soil and the offspring and other products of animals a. Natural b. Industrial c. Civil d. Penal B 41. Products of the soil through cultivation or intervention of human labor a. Natural b. Industrial c. Civil d. Penal C 42. Fruits arising out of contracts – like rental payments a. natural b. industrial c. civil d. penal B 43. When does the obligation to deliver arise Answer 1 – If there is no term or condition, then from the perfection of the contract Answer 2 – If there is a term or condition, then from the moment the term arrive or the condition happens a.True, true b. true, false c. False, true d. false, false C 44. A is obliged to give B, 10 kilos of sugar, which of the following is not correct a. B can demand that A obtain the sugar and deliver it to him b. B can just buy 10 kilos of sugar and charge the expenses to A c. A can insist on just paying B damages of the monetary value of the sugar d. B ,ay require another person to deliver the sugar and charge the expenses to A D 45. When demand by the creditor shall be necessary in order that delay may exist a. When time is of the essence of the contract b. When demand would be useless

c. When the obligor has expressly acknowledged that he is in default d. When the obligor requested for an extension of time B 46. Debtor’s default in real obligation a. Mora accipiendi c. Mora solvendi ex persona b. mora solveudi ex-re d. Compensatio morae C 47. Debtor’s default in real obligation a. Mora accipiendi c. Mora solvendi ex persona b. mora solveudi ex-re d. Compensatio morae A 48. Default on the part of the creditor a. Mora accipiendi c. Mora solvendi ex persona b. mora solveudi ex-re d. Compensatio morae D 49. Default on the both part of the parties a. Mora accipiendi c. Mora solvendi ex persona b. mora solveudi ex-re d. Compensatio morae C 50. A borrowed money from B payable on Dec. 10, 2006. If A failed to pay on due date, will A be in delay? a. Yes, because there is stipulation as regards the due date b. Yes, if the obligation is in writing c. No, because demand has not been made by B d. No, if A has the money to pay B A 51. Damaged awarded for mental and physical anguish a. moral b. Exemplary c. nominal d. temperate C 52. Damages awarded to vindicate a right a. Liquidated b. Actual c. Nominal d. Exemplary A 53. Damages awarded to set an example a. Exemplary b. Liquidated c. nominal d. moral C 54. When the exact amount of damages cannot be

ascertained a. Exemplary b. Liquidated c. Temperate d. moral B 55. Damages predetermined beforehand a. Temperate b. Liquidated c. Actual d. Moral C 56. A obliged himself to deliver to B the following 1) 2007 Sing-it Yamaha Organ 2) Malagona passenger jeepney with engine No. 69 and chasis No. 88 First statement – In case A failed to deliver the 2007 yamaha Organ, the court may compel A to deliver the 2007 Yamaha Organ plus damages Second Statement – In case A failed to deliver the jeepney, the court may compel A to deliver the jeepney plus damages a. True, true b. True, false c. False, true d. false, false A 57. I. If a person obliged to do something fails to do it, the same shall be executed at his cost II. Those who in the performance of their obligation are guilty of fraud, negligence, or delay and those who in any manner contravene the tenor thereof, are liable for damages. a. True, true b. True, false c. False, true d. False, false D 58. I. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for fraud is void. II. If the law or contract does not state the diligence which is to be observed in the performance of an obligation, that which is expected of a father of a good family shall be required a. true, true b. true, false c. False, true d. False, false B 59. I. The recipient of a later installment of a debt without reservation as to prior installments shall give rise to a rebuttable presumption that such installments have been paid. II. If a taxpayer pays his income tax liability for the correct year, there is a presumption that tax

liability for the previous year has been paid. a. true, true b. true, false c. False, true d. False, false D 60.With regard to the right as to the fruits of the thing, which is not correct? a. If the obligation is subject to a suspensive condition, the obligation to deliver arises from the moment the condition happens. b. If the obligation is subject to a suspensive period, the obligation to deliver arises upon the expiration of the term or period. c. If there is no condition or term for its fulfillment, the obligation to deliver arises from the perfection of the contract or creation of the obligation. d. If the obligation arises from a contract of sale, the vendor has right to the fruits of the thing from the time the obligation to deliver arises. A 61. A is obliged to deliver his only car to B on November 20, 2007. If A does not deliver, and on November 22, 2007, a typhoon destroys the car a. A is not liable because the obligation is extinguished b. A is liable because he is delay c. A and B will divide the loss equally d. A’s obligation is converted into a monetary obligation C 62. I. When what is to be delivered is a determinate thing, the creditor may compel the debtor to make the delivery and if the debtor refuses, the creditor may ask that the obligation be complied with at the expense of the debtor. II. The obligation to give a determinate thing includes that of delivering all its accession and accessories, even though they may not have been mentioned. a. true, true b. True, false c. False, true d. false, false A 63. What is the basis of the liability of a school when a student is stabbed inside the campus by a stranger in the school? a. Contracts b. Quasi- contracts c. Delicts d. Quasi – delicts

D 64. The following expect one, are included in civil liability. The exception is a. restitution b. reparation c. Indemnification d. starvation A 65. The thing itself shall be restored, as a rule a. restitution b. Reparation c. Indemnification d. starvation B 66. The court determines the amount of damage taking into consideration the price of the thing and its sentimental value to the injured person a. restitution b. Reparation c. Indemnification d. starvation C 67. The consequential damages suffered by the injured person and those suffered by his family or third person by reason of the act. a. restitution b. Reparation c. Indemnification d. starvation B 68. Action to Impugn or rescind acts or contracts done by the debtor to defraud the creditors a. Accion reinvindicatoria b. Accion Paulina c. Accion Subrogatoria d. Accion Quanti – minoris C 69. A borrower agreed, that in case of nonpayment of his debt, to render services as a severant. Which of the following is not correct? a. If the services will be rendered in satisfaction of the debt, the stipulation is valid. b. If the services will be “for free”, the stipulation is void for being contrary to law and morals c. If the services will not be gratuitous, specific performance of the service will be the proper remedy in case of non – compliance. d. Should there be a valid stipulation as regards the rendition of services, an action for damages should be brought in case of non- compliance.

C 70. A ordered B, a 10 year old boy to climb a high and slippery mango tree with a promise to give him part of the fruits B was seriously injured when he fell while climbing the tree. Is A liable? A. First answer No, because no person shall be responsible for fortuitous events B. Second Answer Yes, because A was negligent in making the order without taking due care to avoid a reasonable foreseeable injury to a. true, true b. true, false False, false

c. False, true d.

D 71. A pays for B’s transportation fare, without B’s knowledge and later discovers that B was entitled to half-fare. Which is not correct? a. A can recover the half- fare from D c. A can recover ½ from B and ½ from the carrier b. A can recover the half-fare from the carrier d. A can recover half-fare from B only D 72. A borrowed P100,000 from B. the loan was secured by a mortgage of A’s land in favor of B. Without the knowledge of A, C paid B the sum of P100,000 for A’s debt. As a result, a. C may foreclose the mortgage on A’s land if A cannot pay b. C cannot claim reimbursement from A in as much as the payment was made without the knowledge of A c. C can recover the amount from B in case A refuses to reimburse C d. The obligation of A to B was extinguished but A should reimburse C the amount of P100,000 because he was benefited by the payment A 73. When the debtor of a debtor is ordered not to pay the latter so that preference would be given to the latter’s creditor a.

garnishment

b. interpleader c. Injunction

d.

Attachment B 74. A obtained a loan from B bank. The loan was embodied in several promissory notes. As security the borrower executed a chattel mortgage on his standing crops. Said crops were however subsequently destroyed by typhoon “Rosing”. Is A still liable for the loan despite the destruction of the crops by a fortuitous event? 1st answer Yes, the obligation of A was to deliver a generic thing—money 2nd answer No, the obligation was to deliver determinate things – the standing crops a. true, true b.true, false c. False, true d. False, False C 75. A sold a half – interest in his specific car to B. It was agreed that the price to be paid by B would be used in installing a new engine on the car. Later, the car was destroyed by a fortuitous event. Is B’s obligation to pay the price extinguished? 1st answer Yes, there is no more use of installing a new engine since the car has already been destroyed by a fortuitous event. 2nd answer No, B must still pay because his obligation to pay is generic a. true, true b. true, False c. False, true d. false, false B 76. I. A commits the crime of theft and is asked to return the car to its owner B. If, before the car is delivered to B it is destroyed by a fortuitous event, Is A’s liability extinguished? using above statement, A had previously asked the owner to accept the car, but the owner without any justifiable reason refuses to accept the car, and it is destroyed by a fortuitous events. Is A’s liablilty extinguished? a. yes, yes b. no, Yes c. yes, no d. no , No B 77. I. There is no delay in an obligation not to do something II. Solutio indebti and negotiorum gestio are implied contracts

a. true, true False, false

b. true, false c. False, true d.

D 78. I. Consent of the parties is required in quasicontract II. The creditor acquires real right over the thing from the time obligation to deliver arises a. true, true b. true, false c. False, true d. False, false C 79. The creditor has a right to the fruits of the thing from the time a. the thing is delivered c. The obligation to deliver the thing arises b. The fruits are delivered d. The sale is perfected D 80. The buyer has the right to the fruits of the thing from the time a. the thing is delivered c. The obligation to deliver the thing arises b. the fruits are delivered d. The sale is perfected 81. Which is not considered as quasi – contract? a. Solution indebiti b. Negotiorum gestio c. When the third person with the knowledge of the debtor , pays the debt d. reimbursement due the person who saved property during fire or typhoon without the knowledge of the owner B 82. No longer enforceable by court action but is binding on the party who oblige with it in conscience is a. Civil obligation c. moral Obligation b. Natural Obligation d. Conditional obligation A 83. If A pays a debt that has prescribed: 1. Not knowing it has prescribed, A can recover the ground of undue payment 2. Knowing it has prescribed, A cannot recover for this would be a case of natural obligation a. both 1 & 2 are true c. Only 2 is true

b. Only 1 is true are false

d. Both 1 & 2

C 84. On June 24, 2007, A is obliged to give B his specific car. There was no delivery until June 30 when the garage of the car collapsed due to heavy rain and strong winds of typhoon Pining, and the car was totally destroyed. Is A still liable? a.no, even if A was in default, he could plead impossibility of performance b Yes, because the contract is perfected c. No, because there was no demand by B to deliver the car d. yes, the obligation to deliver the car is changed to pay the equivalent value because B is in legal delay A 85. This obligation is demandable at once when it a. Has a resolutory condition b. Has a suspensive condition c. Is with a term exdie d. Has a period D 86. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be with a a. resolutory period b. Suspensive condition c. Potestative condition d. period A 87. A promised to give B his Volvo car if B passes the CPA board exams. Pending the results of the exams the car is destroyed by a fortuitous event without any fault on the part of A. As a result a. the obligation of A is extinguished b. the obligation of A is converted into monetary obligation c. The obligation of A will be equitably reduced d. A will have to give A another car of equivalent value A 88. A period with a suspensive effect a. I will support you beginning January 1 of next year c. I will support you if A dies of TB b. I will support you until January 1 of next year d. I will support you if A marries B B 89. A period with a resolutory effect a. I will support you beginning January 1 of next year

c. I will support you if A dies b. I will support you until A dies d. I will support you if A dies of TB A 93. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit a. of both the creditor and debtor c. of the debtor only b. Of the creditor only d. Of third person D 94. This is a valid obligation a. A will give B P100,000 if B will kill C b. A will give B P1,000,000 if B will agree to be mistress of A c. A will give B P10,000 if B can make C rise from the dead d. A will give B P1,000 if b will not pose nude in a painting session A 95. Where two or more prestations have been agreed upon but only one is due, the obligation is a. Alternative b. facultative c. Conjoin d. Solidary A 96. Using the preceding number, the right of choice, belongs a. To the debtor b. To the creditor c. to both debtor and creditor d. To third person B 98. I. Using the preceeding number, if objects nos. 1 and 2 were destroyed by a fortuitous event and later object No. 3 is destroyed by A’s fault. A would still be liable II. Using the preceding number, if objects nos 1 and 2 were destroyed by A’s fault and later object no. 3 is lost by a fortuitous event. A would still be liable a. true, true b. true, false c. False, true d. false, false D 99. A is obliged to give B either objects No. 1 & No. 2 or no. 3 at B’s option. Before B communicated his choice to A, object No. 1 had been destroyed, thru A’s fault and object No. 2 had been destroyed by a fortuitous event. B may a. Demand object No. 3 only as it is still available b. demand the price of object No. 1

only plus damages because it was destroyed by A’s fault c. demand the value of object No. 2 as the right of choice belongs to B d. demand either object No. 3 or the price of object No 1 plus damages D 100. Any of the debtors is bound to render compliance of the entire obligation a. alternative b. facultative c. joint d. Solidary D 101. In a joint obligation, joint means any of the following, except a. pro-rata b. proportionate c. mancomunada simple d. Individually & collectively B 102. In facultative obligations, if substitution has been made, which of the following is false? a. the obligation is extinguished b. the loss of the original prestation is immaterial c. The obligation is converted into a simple obligation d. The obligation ceases to be facultative A 103. Using the preceding number, and the substitute is lost by a fortuitous event, which is true? a. the obligation is extinguished b. the debtor is liable for damages c. the original prestation must be given d. The debtor must give another object which is equally satisfactory B 104. Using the preceding number, but the substitute is lost due to debtor’s fault, which is true? a. the obligation is extinguished b. The debtor is liable for damages c. the original prestation must be given d. The debtor must give another object which is equally satisfactory D 105. Instances where the law imposes solidary liability, except a. Obligations arising from tort b. Obligations of bailees in commodatum c. liability of principals, accomplices and

accessories of a clony d. liability of partners arising out of a contract D 106. This will result to a solidary liability a. vitiated consent on the part of one of the debtors b. insolvency of one of the debtors c. default on the part of one of the debtors d. quasi – delict commited by one of the partners acting in the ordinary course of business B 107. Where only one prestation has been agreed upon, but the obligor may render another in substitution. The obligation is a. Alternative b. facultative c. Conjoint D. Solidary C 108. Where two or more prestations have been agreed upon, and all of them must be performed, the obligation is a. Alternative b. facultative c. Conjoint D. Solidary A 109. A and b are solidary debtors of C and D, solidary creditors, to the amount of P1,000. C can demand a. P1,000 from A or P1,000 from B c. P500 from A or P500 from B b. P1,000 from A and P1,000 from B d. P500 from A and P500 from B B 110. A and B solidary debtors of C and D, joint creditors, to the amount of P1,000 – C can demand a. P1,000 from A or P1,000 from B c. P500 from A and P500 from B b. P500 from A or P500 from B d. P250 from A and P250 from B C 111. A nad B are joint debtors of C and D, solidary creditors to the amount of P1,000. C can demand a. P1,000 from A or P1,000 from B c. P500 from A and P500 from B b. P500 from A or P500 500 from B d. P250 from A and P250 from B C 112. A nad B are joint debtors of C and D, joint creditors, to the amount of P1,000. C can demand a. P500 from A or P500 from B c. P250 from A and P250 from B

b. P250 from A or P250 from B d. P500 from A and P500 from B D 113. This is synonymous to joint obligation a. joint & several b. In solidum c. Individually & collectively d. Mancomunada Simple D 114. This is synonymous to solidary obligation a. Pro-rata b. Mancomunada c. Proportionate d. juntos o separadamente A 115. A, b and C are joint debtors of D for P3,000. If A is insolvent, how much should B pay D? a. P1,000 b. P1,500 c. P2,000 d. P3,000 C 116. In 2007, A, B and C bound themselves in solidum to give D P9,000 subject to the following conditions: A will pay in 2007, b, if D passes the 2008 CPA Board exam and D will pay in 2009 in 2007, how much can D demand from c? a. P9,000 b. P6,000 b. P3,000 d. 5,000 A 117. A, B and C are solidary debtors of D for P3,000. D remitted c’s share. A therefore paid later P2,000. A can recover reimbursement from B in the amount of a. P1,000 b. P1,500 c. P500 d. P0 C 118. Using the preceding number, if B is insolvent, A can recover from C the amount of a. P1,000 b. P1,500 c. P500 d. P0 D 119. A, b and C are solidary debtors of D in the amount of P1,000. D remitted the entire obligation when A offered to pay. A can demand reimbursement from B in the amount of a. P1,000 b. P500 c. P333 d. P0 B 120. A, B and C are solidary debtors of D in the amount of p3,000 but A was incapacitated to give his consent as he was a minor. If D sues B, how much will B be liable for? a. P3,000 b. P2,000 c. P1,000 d. P0

A 122. A is indebted to solidary creditors B, C and D for P90,000. Without the knowledge of B and C, D remitted the obligation of A, as a result, a. The obligation of A to pay P90,000 is extinguished b. The obligation is not extinguished because there is no consent from b and C c. the obligation is extinguished only up to P30,000 d. the obligations is extinguished up to P60,000 D 124. A is obliged to give B her college ring. If she fails to do so, she must give P10,000. This is a. Alternative obligation c. facultative Obligation b. Conjoint Obligation d. Obligation with a penal clause D 125. Where the penalty takes the place of indemnity for the damages and for the payment of interest a. Where there is stipulation to the effect that damages or interest may still be recovered, despite the presence of the penalty clause b. when the debtor refuses to pay the penalty imposed in the obligation c. When the debtor is guilty of fraud or dolo in the fulfillment of the obligation d. Where there is breach of the obligations B 126. This is an obligation with a resolutory condition a. I’ll give you P10,000 if you pass the 2006 CPA board examination b. I’ll give you may car now, but should you fail in any of your subjects, your ownership will case and it will be mine agin c. I’ll give you P10,000 on December 31, 2006 d. I’ll give you P10,000 if A dies of TB C 127. I. If the condition is potestative on the part of the debtor, the obligation is void II. If the condition, is potestative on the part of the creditor, the obligation is valid a. true, true b. True, False C. false, true D. False, false

C 128. A owns a house rented by B. A sold the house to C where C agreed to pay the balance of the purchase price as soon as B leaves the premises. It was farther agreed that c will take care of seeing to it that B vacates the house. Which is correct a. The contract is void because it is potestative on the part of C b. the contract is void because the consent of B was not obtained c. the contract is valid because the condition is mixed d. the contract is valid if B is willing to vacate the premises A 129. I. the condition that some event happens at a determinate time shall extinguish the obligation as soon as the time expires or it has become indubitable that the event will not take place II. The condition that some event will not happen at a determinable time shall render the obligation effective from the moment the time indicated has elapsed, or it has become evident the event cannot occur a. true, true b. true, false C. false, true d. false, false D 130. I. A father promised to give his son a car if the son will marry B this year. If by the end of the year, B Is already dead or the son has not married B, the obligation to give is effective and demandable II. A father promised to give his daughter a car if the daughter will not marry her boyfriend earlier than December 31, 2006. If by December 31, 2006 the daughter has not yet married her boyfriend, or if prior thereto, her boyfriend has died, the obligation is extinguished. a. true, true b. true, false c. false, true d. False, true A 131. I. obligations with a resolutory period take effect at once, but terminate upon arrival of the day certain. II. Obligations with a resolutory condition take effect at once, but terminate upon happening of the condition. a. true, true b. true, false c. false, true d. False, true B 132. A borrowed money from B and pledged her ring as security. It was agreed

that A was to pay the money loaned with interest at the end of one year. Before the expiration of the one year period a. A may compel B to accept her payment b. A may be allowed to pay B, if B consents c. A may compel B to accept her payment because the period is deemed for the benefit of A d. B may refuse A’s payment as the period is demand for the benefit of B C 133. The debtor shall lose every right to make use of the period, except a. When after the obligation has been contracted, he becomes insolvent, unless he gives guaranty or security or security for the debt. b. When he does not furnish to the creditor the guaranties or securities which he has promised c. When through fortuitous events or by his own acts the guaranties or securities have been impaired, unless he immediately gives new ones equally satisfactory d. When the debtor violates any undertaking in consideration of which the creditor agreed to the period A 136. The creditor is entitled to recover damages and interest in addition to penalty stipulated a. When the debtor refused to pay the penalty b. When the debtor is guilty of fraud in the fulfillment of the obligation a. true, true b. true, false c. false, true d. False, true B 137. Action where a person in possession of certain property may bring an action against the conflicting claimants to compel them to interplead and litigate their several claims among themselves a. Garnishment b. interpleader c. Injunction d. Attachment C 138. A judicial process by virtue of which a person is generally ordered to refrain from doing something a. Garnishment b. interpleader c. Injunction d. Attachment A 139. Where a property is alienated to the creditor is satisfaction of a debt in money

a. Dation in payment b. payment by cession c. Application of payment d. Consignation B 140. Where a debtor transfers all his properties not subject to execution favor of his creditors so that the latter may sell them and thus apply the proceeds to their credits. a. dation in payment b. Cession c. Application of payment d. Consignation B 140. The act of offering the creditor what is due him together with a demand that the creditor accept the same a. Application of payment b. tender of payment c. Datio in Solutum d. Cession B 142. The act of depositing the thing due with the court or judicial authorities whenever the creditor cannot accept or refuses to accept payment a. Tender of payment b. Consignation c. Application of payment d.datio in Solutum A 143. The meeting in one person of the qualities of creditor and debtor with respect to the same obligation a. Confusion b. Compensation c. Novation d. Condonation B 144. When two persons in their own right are creditors and debtors of each other a. Confusion b. Compensation c. Novation d. Condonation C 145. This is not necessary in order that compensation may prosper a. that the two debts are both due b. That the two debts be liquidated and demandable c. That there be a retention or controversy commenced by third persons and communicated in due time to the debtor d. both debts consists in a sum of money, or if the things due are consumable, they be of the same kind and also of the same quality if the later has been stated. D 146. Compensation cannot take place except, a. When one debt arises from the obligations

of a depositary b. When one debt arises from the obligations of a bailee in commodatum c.When one debt arises because of a claim for support due to gratuitous title d. When one debt arises from blank deposit C 147. The substitutions or change of an obligation by another which extinguishes or modifies the first a. Confusion b. Compensation c. Novation d. Consignation A 148. Novation which changes the object or the principal condition of the obligation a. Real b. personal c. mixed d. Partial B 149. Novation which changes the parties to the obligation a. Real b. personal c. mixed d. Partial B 150. Expromission, delegacion or subrogating a third person in the right of the creditor a. Real b. personal c. mixed d. Partial C 151. Novation which changes the object and parties of the obligation a. Real b. personal c. mixed d. Partial B 152. Substitution of debtor where the initiative comes from a third person a. Delegacion b. Expromission c. Subrogating d. Novation

c. When a third person, not interested in the obligation, pays with the express or tacit approval of the debtor d. When , even without the knowledge of the debto, a person interested in the fulfillment of the obligation pays, without prejudice to the effects of confusion as to the latter’s share A 156. I. Proof of actual damages suffered by the creditor is not necessary in order that the penalty previously agreed upon may be demanded II. Proof of actual damages suffered by the creditor is not necessary in an obligation with a penal clause. a. true, true b. true, false c. false, true d. False, true C 157. I. 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 cannot recover anything II. The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be of the same value as or more valuable than that which is due a. true, true b. true, false c. false, true d. False, true

C 154. The transfer of a third person of all the rights appertaining to the creditor a. Delegacion b. Expromission c. Subrogating d. Novation

C 158. A owes B two debts, both of which are already due. The first debt is secured by a mortgage the second is not. A tells B that payment he is now making should be applied to the second debt instead of the first, which is correct? a. B may refuse such application on the ground that the first debt is more burdensome to the debtor b. B may refuse such application because the payment shall be applied proportionately c. B cannot refuse the application because the preference of the debtor must be followed

A 155. Legal subrogagtion is presumed in the following. Which is not correct? a. When a third person, not interested in the obligation, pays will the approval of the creditor b. When a creditor pays another creditor who is preferred, even without the debtor’s knowledge

D 160. A owes B P10,000 with C as a guarantor. A paid P4,000 leaving P6,000 unpaid balance. D without the knowledge of A, paid B the sum of P10,000. As a result of this payment a. The obligation is not extinguished as the payment is without the consent of A b. the obligation is extinguished but D cannot

A 153. Substitution of debtor where the initiative comes from the debtor a. Delegacion b. Expromission c. Subrogating d. Novation

recover from A instead he should go after the guarantor c. The obligation is extinguished but D can recover only P6,000 from A and if A cannot pay, D should demand payment from C D. The obligation is extinguished but D cannot recover P10,000 but only P6,000 from A and if A cannot pay, he cannot go after C. A 161. A owes B P10,000 C in behalf of A, pays B P10,000 against the consent of A although C has previously told A that he © did not intend to be reimbursed. Nevertheless, B accepts the payment by C in behalf of A. 1st statement A’s obligation towards B is extinguished 2nd statement C may still recover from A because A did not consent to what the law deems a donation on the part of C in favor of A a. true, true b. true, false c. false, true d. False, true C 162. A owes B two debts, both of which are already due. The first debt is secured by a mortgage while the second is not. A tells B that the payment he is now making should be applied to the second debt, instead of the first. 1st statement B may refuse to accept such application on the fround that the first debt is more burdensome to the debtor 2nd statement B cannot refuse such application because the preference of the debtor must be followed. a. true, true b. true, false c. false, true d. False, true B 163. I. A owes B P10,000, guaranteed by C. B assigns his credit to X. X assigns the credit to Y. Y assigns the credit to A. A’s obligation is extinguished and C is released from his obligations as guarantor. II. A owes B P10,000 guaranteed by C. B assigns his credit to X. X assigns his credit to Y. y assigns his credit to C, the guarantor. A’s obligation is extinguished and C is released from his obligation as guarantor. a. true, true b. true, false c. false, true d. False, true B 164. A has two creditors, b and C. B is a mortgage creditor for P20,000 and C is an

ordinary creditor for P10,000. C paid A’s debt of P20,000 to B 1st statement If C’s payment is with A’s knowledge, C will be subrogated in the rights of B 2nd statement if C’s payment is without A’s knowledge, C will not be subrogated in the rights of B a. true, true b. true, false c. false, true d. False, true D 165. A nad b are jointly liable to deliver a particular car valued at p200,00 to C on July 1, 2007. Which is correct? a. the prestation is indivisible making the liability of A and B solidary b. if on July 1, 2007, A is willing to deliver the car but B is not, C may enforce the obligation against A c. A is liable for a proportionate part of the obligation and will be liable also for damages if b is not ready to comply with his obligation, even if a is willing to deliver the car d. the liability of A and B is joint and that damages may be assessed only against the debtor who violated the obligation D 166. A executes in favor of B a promissory note for P1,000,000 payable after two years, secured by a mortgage on a building valued at P2,000,000. One year after the execution of the note, the mortgaged building was totally burned. Can B demand from A the payment of the value of the note? a. yes, if A is willing to pay B B. No, If A refuses to pay B c. yes, even if A gives another security which is equally satisfactory d. yes, unless A gives another security which is equally satisfactory C 168. A obliged himself to pay B P10,000 as soon as possible. Three months later, B demanded payment from A but the latter refuses to pay. B can a. File an action in court compelling A to pay the obligation b. Consider the obligation void because the phrase as soon as possible is indeterminable c. Go to court so that the court will fix the date of payment d. Ask for damages because three months is considered too long for “as soon as possible”

A 169. A owes B P10,000 payable on June 30, 2007 and as a security. A pledged his ring to B. Necessarily the ring was delivered to B. On due date, the ring is found in the possession of A when it should be in the possession of B. As a result, one of the following is not correct. a. A’s obligation to b is extinguished b. A’s obligation to B is extinguished c. The contract of pledge is extinguished d. The contract of pledge is extinguished but not the principal obligation B 171. I. when the fulfillment of the suspensive or resolutory condition depends upon the sole will of the debtor, the conditional obligation shall be void. II. If the debt produces interest, payment of the interest shall not be deemed to have been made until the principal have been covered or paid. a. true, true b. true, false c. false, true d. False, true A 172. I. Condonation or remission is generally gratuitous II. Proof of actual damages suffered by the creditor is not necessary in order that the penalty in an obligation with a penal clause may be demanded a. true, true b. true, false c. false, true d. False, true C 173. I. in delegacion, the insolvency of the new debtor will not receive the original debtor’s obligation II. In expromission the insolvency of the new debt may at times revive the original debtor’s obligation a. true, true b. true, false c. false, true d. False, true A 174. I. A Solidary creditor cannot assign his rights without the consent of the other creditors. II. Payment of the debtor’s obligation may be made by a third person even without the knowledge consent of the debtor a. true, true b. true, false c. false, true d. False, true B 175. I. Solidary may exist although the debtors and the creditors may not be bound in the same manner and the same periods

and conditions II. A solidary debtor is always entitled to reimbursement from his co-debtors if he pays for the obligations a. true, true b. true, false false, true d. False, true

c.

A 176. I. payment made in good faith to any person in possession of the credit shall extinguish the debtors obligation II. When the debtor is guilty of fraud in the fulfillment of an obligation, a creditor can demand payment of damages and interest in addition to the penalty. a. true, true b. true, false c. false, true d. False, true D 177. A obliges himself to give B a specific car on Jan. 7 ,2007. On Jan 7, 2007, C burned the car which A promised to deliver to B, which is correct? a. A’s obligation to B is converted to monetary obligation b. A should file an action against C for the value of the car plus damages c. B can file an action against A for the value of the car plus damages d. B can file an action against C for the value of the car plus damages C 178. A owes B P10,000 due on Jan. 7 and guaranteed by C. B owes A P8,000 due on Jan. 7. On the due date, A is insolvent. How much is C’s liability? a. P10,000 b. P8,000 c. P2,000 d. P0 D 180. In tender of payment and consignation, if after consignation is made, the creditor allows the debtor to withdraw the thing deposited in court, which of the following statements is not correct? a. Guarantors are released from the obligation unless they consented b. Sureties are released from the obligation unless they consented c. The obligation is extinguished D 181. A owes B P100,000 payable on or before Jan. 20 ,2007 while B owes A P100,000 payable on or before Jan. 30, 2007 B can set up compensation on Jan. 20, 2007 and this is called a. Legal b. Partial

Facultative

c. judicial or “set off”

d.

disregarded d. void, killing a person is contrary to law.

D 182. Which of the following is an obligation with a period for the benefit of the debtor? a. An obligation payable little by little b. An obligation payable when the debtor’s means permit him to do so c. An obligation payable within 10 months on demand d. An obligation payable on or before Dec. 31, 2007

C 190. Whoever pays for another without the knowledge or against the will of the debtor a. May demand from the debtor what he has paid b. may not recover anything from the debtor c. May recover only insofar as the payment has been beneficial to the debtor d. May recover from the debtor what he has paid plus damages

B 183. Proof of pecuniary loss is necessary for the award of a. moral damages b. Actual damages c. Exemplary damages d. temperate damages

D 191. A owes B P10,000. Later A paid B P7,000 leaving a balance of P3,000. C, a suitor of A and intending to surprise A, paid B the sum of P10,000 thinking that A still owed B that amount. C did this a. C Can recover P10,000 from A c. C can recover P10,000 from B b. C cannot recover anything from A

A 184. The indemnity which the law gives to the injured party for the breach of a contract is a. damages b. damage c. Injury d. Loss B 185. The loss suffered by one person on his property is a. Damages b. damage c. injury A 186. Not a requisite of cession in payment a. One debtor and one creditor c. more than one debt b. Complete or partial insolvency d. Abandonment of all debtor’s property not exempt from execution C 187. If the obligation is payable in foreign currency, Which is correct? a. The obligation is void b. The obligation is valid, but the stipulation is void c. The creditor can compel the debtor to pay in foreign currency as per agreement d. the stipulation and the obligation are void D 188. Who is liable for the loss of the subject matter by fortuitous event? a. creditor b. Debtor c. Both of them d. None of them A 189. I’ll give you my car one year after X dies. The obligation is a. Valid, because death is sure to come c. Void, the time when death will occur is not certain b. Valid. But the condition will be

d. C can recover P3,000 from A C 192. The act of putting somebody onto the shoes of the creditor enabling him to exercise all the rights and actions that could have been exercised by the latter a. Agency b. Partnership c. Subrogation d. Novation C 193. A borrowed P10,000 from B. the loan was secured by a mortgage of A’s land in favor of B. Without the knowledge of A, C paid the sum of P10,000 for A’s debt. A benefited to the amount of P10,000. Which is not correct? a. C can recover the whole amount of P10,000 from a b. if A cannot pay , C cannot foreclose the mortgage inasmuch as C paid without the knowledge of A c. C may either demand recovery of P10,000 from A or to foreclose the mortgage d. If C did not pay, the original creditor B has the right to foreclose in case of non-payment by A. A 194. A has in his possession some merchandise to be delivered to the person who presents the proper receipt . B and C each armed with a receipt, ask A to turn over the property to one of them. An examination of the receipts reveals that they are exactly

of the same kind. A does not know to him he should deliver the property. So he files an action in court by means of which B and C will be able to settle their conflicting rights. This is a. An interpleader b. An injunction c. A garnishment d. A consignation D 195. When is there no loss of the thing due? a. When the object perishes b. When it goes out of commerce c. When it is in possession of another person d. When it disappeared in such a way that its existence is unknown or it cannot be recovered D 196. The expenses of consignation when properly made, shall be changed against the a, debtor b. creditor c. third person d. Debtor and creditor B 197. The designation of the debt to which should be applied a payment made by a debtor who owes several debts in favor of the same creditor a. Dation in payment c. tender of payment b. Application of payment d. Payment by cession D 199. There is compensation a. A in his capacity as guardian of B is a creditor of C. C in turn is a creditor of A who owes him a personal debt b. A, debtor of two partners is a creditor of the partnership c. A owes B P10,000 payable May 31, 2007. B owes A P10,000 payable on June 30, 2007. If today is May 31, 2007 d. A owes B a fountain pen and B owes A also a fountain pen. Both debts are due C 200. A owes B P1,000. B in turn owes A P200. Both debts are already due. Later B assigns the P1,000 credit to C, without the knowledge of A. The assignment was made on June 3. On June 10, a P25,000 debt of B in favor of A matured. A learned of the assignment on July 1. On July 10, a P150 debt of in favor of A matured. Later C asks A to pay his debt. How much can C successfully collect from A?

a. P1,000 d. P400

b P800

c. P550

C 201. A owes B P10,000. When the debt matured B told A that she need not pay the debt since B condoning it. A in turn expressed her gratitude. The debt has been extinguished by a. Novation c. Compensation c. Remission d. Confusion C 202. Using the preceding number, If a rejected the offer of B, and B did not collect within the statute of limitation (period to collect) the debt may be said to have been extinguished by a. Remission b. Compensation c. Prescription d. Annulment C 203. A makes a check payable to bearer and gives the check to C, who gives it to D who finally give it to A. The obligation of A is extinguished by a. Merger b. Compensation c. Novation d. Prescription D 204. A owes b P10,000 C, a friend of A approaches B and tell him “I will pay you what A owes you. From now on consider me your debtor , not A. A is to be excussed. If B agrees, there is a. novation b. Subrogation c. Delegacion d. Expromission C 205. The debtor shall lose every right to make use of the period, except a. When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or security for the debt b. When he does not furnish to the creditor the guaranties or securities which he has promised c. When through a fortuitous event or by his own acts the guaranties or securities have been impaired after their establishment, unless he immediately gives new ones equally satisfactory D 206. The substitution or change of an obligation by another, which extinguishes or modified the first either changing its object or principal condition or substituting another in the place of the debtor, or subrogating a third person in the rights of the creditor a. Compensation b. merger c. Prescription

d. novation B 207. A method of novation caused by the replacement of the old debtor by a new debtor, where the old debtor has proposed to the creditor and which replacement has been agreed to by said creditor and by said new debtor is a. Novation b. Delegacion c. Expromission d. Quantum – meruit D 209. A and B entered into a contract whereby A was to give B P200,000. Later they novated the contract by stipulating that instead of cash A would give a particular car. Subsquently the car was destroyed by a fortuitous event. Which is correct? a. novation is not allowed because the things due are not of the same kind b. A is liable to pay P200,000, the amount of the old obligation c. the original obligation is extinguished but not the obligation to deliver the car d. The original obligation and the obligation to deliver the car are both extinguished. D 210. A, B and C executed a promissory note worded as follows: “we promise to pay to X, y and Z the sum of P90,000. Sgd. A, B and C, which is correct? a. A is obliged to pay to X, Y and Z P90,000 c. A is obliged to pay to Y P30,000 b. A is obliged to pay to X P60,000 d. A is obliged to pay to Z P10,000S D 211. A obliged himself to give B a specific car on June 12, 2007 stipulating that A is liable even if the thing is lost due to fortuitous event and without the need of a demand. On due date, the car got lost due to fortuitous event. Which is correct? a. Obligation is extinguished due to fortuitous event b. B can compel A to deliver another car c. B can require another person to deliver a car with expenses chargeable to A d. Obligation is not extinguished but converted into monetary consideration A 212. A, B and c obliged themselves solidarily to dive D a specific car valued at

p240,000. On due date, D demanded delivery but the debtors failed to deliver. The next day, while A was still in possession of the car, it was lost due to a fortuitous event. The right of D is a. To proceed against any of the debtors for the value of the car plus damages b. To proceed against A only because the car was lost while in his possession c. None, because the obligation is extinguished due to a fortuitous event d. To proceed against B and C because they were not in possession of the car when it was lost due to a fortuitous event A 214. A owes B P10,000. With the consent of A and B, C pays B P5,000. Now, b and C are the creditors of A to the amount of P5,000 each. Suppose, A has only P5,000. Which is correct? a. b should be preferred c. B and C should be paid pro– rata b. C should be preferred d. A may choose whom to pay