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Law on Obligations & Contracts (Adventist University of the Philippines)

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OBLIGATIONS AND CONTRACTS

6. In Accion subrogatoria the creditor may
Multiple Choice Questions in Obligations and exercise all of the rights and bring all of the
Contracts actions which the debtor may have against
third persons if:
1. It is the juridical relation resulting from
lawful, voluntary, and unilateral acts by a. If the account is personal
virtue of which the parties become bound b. The debtor's acts are fraudulent
to each other to the end that no one shall c. The debtor has performed an act
be unjustly enriched or benefited at the subsequent to the contract, giving
expense of another. advantage to other persons
d. Creditor must have the right of
a. Agreement return against debtor
b. Vinculum juris 7. In Accion Pauliana Rescission, which
c. Contracts involves the right of the creditor to attack
d. Quasi-Contracts or impugn by means of rescissory action
any act of the debtor which is in fraud and
to the prejudice of his rights as creditor
2. This takes place when something is received provided:
when there is no right to demand it, and it
was unduly delivered thru mistake. a. The debt is due and demandable
b. There is a failure of the debtor to
a. Solutio Indebiti collect his own debt from 3rd
b. Negotiorum Gestio persons either through malice or
c. Vinculum juris negligence
d. Prestation c. The debtor's assets are insufficient
d. The debtor has performed an act
3. This happened when the creditor make a subsequent to the contract, giving
demand and the obligor fails to deliver the advantage to other persons
thing.
8. It causes the extinguishment or loss of
a. Negligence rights already acquired upon the fulfillment
b. Mora solvendi of the condition, that is, the happening of
c. Mora accipiendi the event which constitutes the condition.
d. Compensatio morae In other words, the fulfillment of which will
extinguish an obligation (or right) already
4. Demand is not necessary to incur delay existing.
when:
a. Condition subsequent
a. Creditor refuses the performance b. Suspensive
without just cause. c. facultative condition
b. The debtor is guilty of non- d. positive condition
performance.
c. Time is the controlling motive 9. When the thing deteriorates with the
d. If the obligation bears interest debtor’s fault, the creditor may choose one
of the following:
5. In what instance may we consider that
there is no delay? a. Mutual restitution
b. Rescission (cancellation) of the
a. In civil obligations obligation with indemnity for
b. In positive obligation damages
c. In obligation arising from crime c. Suffer the deterioration of the
d. In natural obligation thing

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d. Institute an action for negligence. ANSWER: D

10. It is a future and certain event upon the

arrival of which the obligation (or right)
subject to it either arises or is terminated. 4. When the characters of the creditor and the
debtor are merged in one and the same person,
a. Fortuitous events
b. Condition there is extinguishment of the obligation by:
c. Period
d. Date and time a. Compensation
b. Merger of Rights
II.
c. Novation
1. When the debtor binds himself to pay when his d. Remission
means permit him to do so, the obligation is:
ANSWER: B
a. Conditional
b. Pure
c. Simple 5. Through insidious words or machinations, A was
d. With a Period able to induce B to enter into a contract which
without them B would not have agreed to it. There
ANSWER: D is:

a. Undue Influence
2. Contracts which cannot be sued upon unless b. Fraud
ratified, thus it is as if they have no effect yet are: c. Mistake
d. Misrepresentation
a. Voidable
b. Rescissible ANSWER: B
c. Void
d. Unenforceable
6. "A sells to B his lot and house in the city if A
ANSWER: D decides to transfer and live in the countryside" is an
example of:

3. If the obligation of the debtor is "I will pay a. Mixed Condition

you my debt after I have arrived from abroad," this b. Potestative Condition
is c. Casual Condition
d. Resolutory Condition
a. Unenforceable
b. With a Period ANSWER: B
c. Void
d. Conditional

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7. It is a mode of extinguishing an obligation when

two persons in their own right are creditors of each ANSWER: C
other.
III.

a. Confusion
1. When the debtor binds himself to pay when his
b. Reformation means permit him to do so, the obligation is:
c. Compensation
d. Novation a. Conditional
b. Pure
ANSWER: C c. Simple
d. With a Period

8. A contract is in the stage of conception when: ANSWER: D

a. There is meeting of the minds.

b. Negotiations are in progress. 2. Contracts which cannot be sued upon unless
c. The parties come to an agreement. ratified, thus it is as if they have no effect yet are:
d. The contract is perfected.
a. Voidable

ANSWER: B b. Rescissible
c. Void
d. Unenforceable

9. If the obligor binds himself to perform his

ANSWER: D
obligation as soon as "he shall have obtained a
loan" from a certain bank, this obligation is:

3. If the obligation of the debtor is "I will pay you

a. With a Term
my debt after I have arrived from abroad," this is
b. Conditional
c. Suspensive
a. Unenforceable
d. Resolutory
b. With a Period
c. Void
ANSWER: B d. Conditional

ANSWER: D
10. Contracts entered into in a state of drunkenness
or during a hypnotic spell are:
4. When the characters of the creditor and the
a. Void debtor are merged in one and the same person,
b. Valid there is extinguishment of the obligation by:
c. Voidable
d. Legal a. Compensation

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b. Merger of Rights
c. Novation 8. A contract is in the stage of conception when:
d. Remission
a. There is meeting of the minds.
ANSWER: B b. Negotiations are in progress.
c. The parties come to an agreement.
d. The contract is perfected.
5. Through insidious words or machinations, A
was able to induce B to enter into a contract ANSWER: B
which without them B would not have agreed to
it. There is: 9. If the obligor binds himself to perform his
obligation as soon as "he shall have obtained a
a. Undue Influence loan" from a certain bank, this obligation is:
b. Fraud
c. Mistake a. With a Term
d. Misrepresentation b. Conditional
c. Suspensive
ANSWER: B d. Resolutory

ANSWER: B
6. "A sells to B his lot and house in the city if A
decides to transfer and live in the countryside" is
an example of: 10. Contracts entered into in a state of
drunkenness or during a hypnotic spell are:
a. Mixed Condition
b. Potestative Condition a. Void
c. Casual Condition b. Valid
d. Resolutory Condition c. Voidable
d. Legal
ANSWER: B
ANSWER: C

7. It is a mode of extinguishing an obligation 11. Delay in the giving or delivering of a thing

when two persons in their own right are creditors

of each other. a. Mora solvendi ex re
b. Mora solvendi ex persona

a. Confusion c. Mora accipiende ex re

b. Reformation d. Mora accipiende ex persona

c. Compensation
d. Novation ANSWER: A

ANSWER: C
12. Which of the following statements is false?

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c. When the party seeking resolution can perform

a. Obligations to give definite things and those only as to part and as to remainder
that are not susceptible of partial performance d. When the seller cannot return the installments
shall be deemed divisible. paid to him by the buyer
b. Execution of a certain number of days of work
shall be divisible. ANSWER: B
c. Accomplishment of work by metrical units are
divisible
d. An obligation to pay a certain amount in ten 16. A defective contract where damage or lesion
annual installments is divisible. is essential

ANSWER: A a. Rescissible
13. This contract is without effect unless ratified: b. Voidable
c. Unenforceable
a. Marriage between first degree cousins d. Void
b. Contract of sale between two insane persons ANSWER: A
c. Contract of sale between husband and wife
d. Donation between husband and wife
17. An instrument may be reformed d
ANSWER: B
a. Simple donations inter vivos wherein no
condition is imposed
14. Which of the following contracts is not void ab b. Wills
initio? c. When the instrument does not express the true
intention of the parties due to mistake
a. Those whose object is outside the commerce d. When the real agreement is void
of men
b. That whose object did not exist at the time of ANSWER: C
transaction
c. That which contemplates an impossible service
d. That which is undertaken in fraud of creditors 18. Three of the following contracts are void.
Which one is not?
ANSWER: D
a. Oral contract of partnership of three partners
and capital contribution is more than P3,000 in
15. Rescission of contract can take place in this cash
case b. Written contract contemplating impossible
services
a. When the thing which is the object of the c. Oral contract of partnership where real estate
contract is legally in the possession of a third is contributed as capital
person who acted in bad faith d. Agent's authority to sell land is given orally.
b. When he who demands rescission can return
whatever he may be obliged to restore ANSWER: A

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example, buying a piece of pandesal, the buyer

will offer to buy and the seller will accept. At this
point, once the seller and buyer agrees to the
19. When a third person assumes the payment of object and price, and their minds have met;
each of them will not just rescind or refuse to
the obligation even without the knowledge and
comply. Even without knowledge of law, one will
consent of the debtor but with the consent of the not just back out from the perfected sale.
creditor
Then, after the perfection of the contract of sell;
unknowingly, they will go on to consummate the
a. There is novation same. The buyer will hand the money and the
b. There is delegation if debtor is released seller, in return, will hand over the pandesal. A
clear example of reciprocal obligations, isn't?
c. There is subrogation
d. There is expromission if debtor is released If the money given is more than the price of the
pandesal, the seller will give the change. That is
because he knows no one should be enriched at
ANSWER: D the expense of another; hence, he has the
obligation to return what is not due him. Likewise,
if what was delivered to the buyer is more than
what he paid for, he will return the same under
20. Which of the following is not an element of the same principle, creating an implied
legal compensation? obligation to return.

In a simple, but very common, transaction, the

a. Debts to be compensated are due and parties are not aware that they are applying the
demandable basic principles of law on obligations and
contracts. They might not be well versed, or
b. There is controversy or adverse claim over any
even, have not had any formal education, yet
debts to be compensated they apply these simple principles of law
c. There are two or more debts of the same kind unconsciously. Thus, If you ask: how we apply
laws on obligations and contracts on our daily
d. There are two or more persons who are activities, we apply it unknowingly, but
creditor or debtors of each other. instinctively, depending on one's value.

ANSWER: B

Question: Why is it important that obligation in

contractsbe faithfully fulfiiled??
Answer: Laws are enacted to have order (or
require the performance of a particular action to
achieve the same) Since the terms and
conditions of a contract are considered the
governing laws between parties, it is necessary to
faithfully fulfill one's obligation, that is, to avoid
the occurrence of dispute. Hence, why do we
have to fulfill our obligations, that is to achieving
order between the parties to the contract.

Question: How do you apply the laws on

obligations and contracts to everyday activities
and business dealings?

Answer: We apply laws on obligations and

contracts unconsciously to our daily activities.
One will not notice that in performing a simple
common task you have applied several
principles on obligations and contracts. Like, for

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