OBLICON PRACTICE EXAM

Multiple Choices.

1. What are the sources of obligation?

A. Contract
B. Law
C. Delicts
D. All of the above

2. Which of the following is not an example of a contract?

A. Seller is selling goods to buyer

B. Lessor leases this store to the lessee
C. Bank receives deposits from a depositor
D. A pedestrian was slightly hit by a car causing bruising in his arm

3. William obliges himself to deliver Joyce her specific book and a red apple on November 15, 2020.
What kind of obligation is this?

A. Indivisible Obligation
B. Divisible Obligation
C. Pure Obligation
D. Alternative Obligation

4. William and Joyce solidarily obliges themselves to pay Edward the sum of P 5,000. When the
obligation became due, which of the following is true?

A. Edward can collect from William the sum of P5, 000

B. Edward can collect from William only the sum of P2, 500
C. Edward can collect from Joyce only the sum of P2, 500
D. Edward can collect the total sum of P7, 500

5. Frank obliges himself to pay Edward the sum of P1, 000 as payment for the apples that he bought.
What kind of obligation does Frank have?

A. Pure obligation
B. Conditional obligation
C. Obligation with a period
D. No obligation

6. Frank obliges himself to deliver to Edward a dozen freshly-baked muffins if it will rain on October 10,
2020. What kind of obligation does Frank have?

A. Conditional obligation with a suspensive condition

B. Conditional obligation with a resolutory condition
C. Obligation with a resolutory period
D. Obligation with a resolutory condition
7. Charles obliges himself to deliver to Jill the sum of P1, 000 or ten (10) yellow pencils on November 10,
2020. Which of the following is true?

A. Charles can deliver ten yellow pencils

B. The obligation is a pure obligation and therefore demandable at once
C. The obligation is a facultative obligation.
D. Charles has to deliver the sum of P1, 000 because it has a higher value.

8. David is the creditor of Thomas, Robert and George, solidary debtors for the sum of P6,000.
When the obligation became due, David demanded payment from Thomas who paid him the sum of P6,
000. Thomas then demanded payment or reimbursement from his co-debtors but Robert had already
become insolvent as of that time. What amount or how much can Thomas collects from George?

A. The sum of P3, 000

B. The sum of P6, 000
C. The sum of P2, 000
D. The sum of P1, 000

9. Gary and Carol entered into a contract where Carol will borrow from Gary the sum of P1, 000 and pay
the loan one month thereafter. The parties agreed that in case Carol cannot pay on time, she will pay a
penalty of P1, 500. When obligation became due, Carol was not able to pay. She paid the debt three
months thereafter. How much can Gary demand from Carol?

A. P1, 000 plus interest

B. P1, 000 from P1, 500
C. P1, 500 plus interest
D. P1, 500 only

10. William obliges herself to deliver to her best friend Joyce one dozen apples and one dozen
star fruits immediately. What obligation is this?

A. Divisible obligation
B. Obligation with a condition
C. Indivisible Obligation
D. Obligation with a period clause

11. William obliges himself to deliver to her best friend one dozen apples and one dozen star
fruits immediately. What kind of obligation(s) is this?

I. Divisible Obligation
II. Pure obligation
III. Indivisible obligation
IV. Obligation with a period
A. II only
B. II and III
C. II and IV
D. III only
12. Frank obliges himself to deliver to Edward a certain book and a certain bag immediately. In such a
case, how would the obligation(s) be classified if today is October 16, 2020?

I. Alternative obligation
II. Facultative obligation
III. Pure obligation
IV. Void obligation
A. I only
B. II only
C. I and III
D. III and IV

13. Kion obliges himself to sell his watch to Bunga for P1, 000 if it will rain on September 30, 2020. On
September 20, a lighting struck the watch, which destroyed it completely. What happens to the
obligations of the parties?

A. Kion will still be liable to deliver another watch of the same kind and quality to Bunga
B. The obligations of the parties to each other will be extinguished through the loss of the thing
C. Kion will still be obliged to deliver another watch but Bunga can decide whether to pay or not
D. The obligation of Kion to deliver the watch is extinguished, although the obligation of Bunga to
pay the price still subsists

14. Miles entered into a contract with Loretta Lending Co. where miles will loan money from the
company for P10, 000. Loretta charges of 30% per annum, while banks in the locality charges only 6%-
12%. How much interest should Miles pay for his loan?

A. The 30% as stated in the contract

B. 10% which is considered just and reasonable
C. 12% the highest of the range within the same locality
D. 6% the lowest of the range within the locality

15. On a sunny day at the Hundred Acre woods, Pooh is happily enjoying his honey and contemplating
the mysteries of the divine. He surmised that all laws have a connection to the Creator who wove
the tapestry of life and destiny. Just then, he saw a book, entitled “The Law of Obligations and
Contracts'' and wondered what kind of law it belonged to. He then wondered, and pondered, and
pouted some more but somehow, he cannot quite get it. When will you tell Pooh so that he can finally
go back to his honey?

A. Divine law
B. Moral Law
C. State law
D. Natural law

True or False (Yellow if true, blank if false)

1. In a quasi-contract, there is no consent but the same is supplied by fiction of law.

2. Solutio indebiti applies when payment is made through mistake.
 3. Manresa defines obligation as “a legal relation established between one party and another,
whereby the former is bound to the fulfillment of a prestation which the latter may demand of
him”.
4. In an action to rescind a contract of sale on installment basis, for non-payment, the cause of action
arises at the time the first installment is not paid.
5. Damages are the harm, hurt, or loss one acquires from an injury.
6. From the viewpoint of the prestation, obligation may either be personal or real.
7. Guardians not being liable for damages caused by the minors or incapacitated persons who are
under their authority and live in their company is an example of quasi-delict.
8. Once a contract is perfected, valid contracts have the force of law between the parties who are
bound to comply therewith in good faith.
9. Actions based upon a written contract should be brought within 10 years from the time the cause
of action accrues.
10. Henry, 19 years-old, bought a helicopter from pretty Anna, the purchase price being paid by Thea,
Henry’s grandmother. Then, Henry and Thea almost cut each other’s head off in a disagreement.
The latter brought action to recover the helicopter that she paid in the first place. There is no
obligation on Henry’s part to transfer the ownership to his grandmother.
11. If a party alleges some defect in a contract as a reason for invalidating it, it must be proved by him
by convincing evidence.
12. The effect of every infraction is to create a new duty, that is, to make recompense to the one who
has been injured.
13. Negotiorum gestio arises when the property or business is not neglected or abandoned.
14. A compromise agreement is immediately executory and appealable, except for vices of consent or
forgery.
15. If damage result from a person’s exercising his own legal rights, it is damnum absque injuria or
damage without injury.

Identification

QUASI-CONTRACT 1. It is the juridical relation resulting from lawful, voluntary, and unilateral acts by
virtue of which the parties become bound to each other to the end that no one shall be unjustly
enriched or benefited at the expense of another

SOLUTIO INDEBITI 2. A juridical relation which is created when something is received when there is no
right to demand it and it was unduly delivered through mistake

QUASI-DELICT 3. An act or omission by a person (tort feasor) which causes damage to another in his
person, property, or rights

OBLIGATION 4. A tie of law or a juridical bond by virtue of which one is bound in favor of another
to render something- and this may consist in giving a thing, doing a certain act or not doing a certain act

JURIDICAL TIE 5. The efficient cause which binds or connects the parties

RIGHT 6. Power which a person has under the law, to demand from another prestation

INJURY 7. Legal wrong to be redressed

POSITIVE PERSONAL OBLIGATION 8. A personal obligation to do or to render service

CRIME/DELICT/ACT OR OMMISSION PUNISH BY LAW 9. Source of obligation which arises from civil
liability which is the consequence of a criminal offense

LICIT ACTS 10. Classification of sources under the private acts in the case of contracts and quasi-
contracts

SPECIAL LAWS 11. Refer to all other laws not contained in the Civil Code

INDEMNIFICATION 12. Scope of Civil liability which shall include not only those caused by the injured
party, but also those suffered by his family or by a third person by reason of the crime. These involve
other consequential damages.

DAMAGES 13. Sum of money recoverable by reason of damage done

NATURAL OBLIGATION 14. Type of obligation not based on positive law but on equity and natural law

OBLIGEE/CREDITOR/PASSIVE SUBJECT 15. Person who is entitled to demand the fulfillment of an

obligation