Midterms Samplex

1.
“A” withdrew US$1,000 in US$100 notes from his dollar account in ABC Bank, but one bill turned
out to be fake. The counterfeiting was done in such a way that even the BSP experts will not be
able to identify the same with ease. The Bank did not act with malice. While using the money in
Bangkok, the fake dollar was noticed and the depositor suffered embarrassment. This case falls
under: Damnum absque injuria.
2. Acting on the letter of credit issued by the National Commercial Bank of Saudi Arabia (NCBSA),
the Philippine Banking Corporation (PBC) transacted with Corporation A. However, both the
head office of PBC and its Makati Branch collected from NCBSA the proceeds of the letters of
credit and NCBSA paid both. Nine years after the payments, NCBSA discovered the “double
payments” and filed an action to recover the duplication in the payment of the proceeds of the
letter of credit. PBC interposed the defense of prescription. Which of the following statement is
NOT correct?
a) The cause of action is based on quasi-contract.
b) The cause of action is based on contract.
c) The prescriptive period of the cause of action of NCBSA is 10 years.
d) PBC has the obligation to return to NCBSA the duplication in payment.
e) None of the above.
3. In a labor dispute against its employer, Philippine Iron Mines (PIM), the union NAMAWU won an
award of P4 Million. After the judgment became final, NAMAWU attached properties of PIM (in
the form of notice of garnishment), consisting of machinery and equipment mortgaged to PCIB.
PCIB subsequently foreclosed the collateral and purchased the same at the auction sale, and
thereafter made a partial payment to NAMAWU the sum of P600,000. Thereafter, PCIB sold the
same property to Atlas Mining. After the sale and to comply with the notice of garnishment,
Atlas paid NAMAWU P4Million, without the knowledge and consent of PCIB. Subsequently, Atlas
wanted to deduct the amount of P4 Million from the balance of the purchase price due to PCIB.
Which is NOT correct?
a) With respect to the P4 Million, PCIB is the debtor, NAMAWU is the creditor and Atlas
is the third-party payor.
b) The obligation of PCIB to NAMAWU is already extinguished by reason of the payment

made by Atlas to NAMAWU.
c) Atlas is not entitled to demand reimbursement from PCIB of the full amount it paid to
NAMAWU.
d) NAMAWU has the obligation to return the excess of P600,000 to PCIB.
e) NAMAWU has the obligation to return the excess of P600,000 to Atlas.
4. “A” opened a foreign currency deposit account with BPI, initially depositing US$100 in cash and
US$16,164 in US Treasury Check. After the lapse of the 30- day clearing period, “A” withdrew
the amount of US$16,244. Several days after the withdrawal, BPI received a notice from its
correspondent bank in the US, that the subject check was dishonored due to amount altered.
Thereafter, BPI immediately applied the sum left in “A’s” other account with the bank, leaving a
balance of P369,600. When “A” refused to pay the balance, BPI sued for collection. Which of the
statements is NOT correct?
a) The cause of action of BPI to recover the balance is solutio indebiti.
b) BPI is entitled to interest on the amount due from demand up to satisfaction.
c) The interest to which BPI is entitled to is compensatory, not monetary.
d) Said interest is in the nature of loan or forbearance of money.
e) A has the obligation to pay the balance and interest.
5. In which of the following situations is the obligation not extinguished?

a) The creditor voluntarily delivered to the debtor the unnotarized promissory note
executed by the debtor.
b) The creditor assigned his credit to “A” without the debtor’s consent.
c) An unsecured creditor pays the debtor’s obligation to the secured creditor.
d) The creditor transferred his credit to “A,” with the latter’s consent and that of the
debtor.
6. A, B, C, and D executed a promissory note promising to pay creditor, X, individually and
collectively, the sum of P400,000. But the promissory note says that insofar as A’s share is
concerned, he will only be liable if he does not pass the bar examinations to be given that year.
The promissory note also says that insofar as the share of B is concerned, the same shall only be
payable on his 25th birthday (he was 23 when signed the note). As to C, he was a minor when he
executed the promissory unassisted by his guardian. Which is not correct?
a) The obligation of the debtors is still solidary and not affected by the circumstances
relating to A, B and C.
b) If the creditor will collect prior to the release of the bar exams of A and prior to the
25th birthday of B, he may collect from D only the sum of P100,000.
c) If the creditor will collect prior to the release of the bar exams of A and prior to the
25th birthday of B, he may collect from A only the sum of P100,000.
d) If the creditor will collect prior to the release of the bar exams of A and prior to the
25th birthday of B, he may collect from B only the sum of P100,000.
e) If the creditor will collect prior to the release of the bar exams of A and prior to the
25th birthday of B, he may collect from C only the sum of P100,000.
7. X assigned his rights, as a co-creditor, in favor of A (not a solidary creditor), without the consent
of the other solidary creditors Y and Z. Upon being notified of the assignment in favor of A, the
debtor (D) paid the entire obligation to the latter, even if he was aware that the assignment was
without the consent of Y and Z. Which of the following statements is correct?
A. D cannot be made to pay again by Y and Z even if the payment to A is not valid.
B. D cannot be made to pay again by Y and Z because his payment to A is valid.
C. D can be made to pay again to Y and Z because his payment to A is not valid, but he
can recover his payment from A under the principle of solution indebiti.
D. D can be made to pay again to Y and Z because his payment to A is not valid, but he
can recover his payment from A under the principle of in rem verso.
E. The payment to A is valid, but X will be liable to Y and Z for any damage that will be
suffered by them.
8. Which of the following obligations is solidary?
a) Obligation of A, B and C to deliver a horse to X.
b) When the makers of the promissory note say: “we, promise to pay the creditor the
sum of Ten Thousand Pesos,” and the same was signed by all of them as makers.
c) When there has been payment of what is not due and there be two or more payees.
d) When the spouses A and B borrowed Ten Thousand Pesos from X.
9. In one obligation, the performance of either prestations 1, 2 or 3 is sufficient to extinguish the
debtor’s obligation. Prestation number 2, however, was lost by reason of the creditor’s fault.
Which of the following statements is correct?
.

Midterms Samplex

Uploaded by

Copyright:

Available Formats

Midterms Samplex

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Midterms Samplex

Uploaded by

Copyright:

Available Formats

1.

a) The cause of action is based on quasi-contract.

b) The cause of action is based on contract.

c) The prescriptive period of the cause of action of NCBSA is 10 years.

d) PBC has the obligation to return to NCBSA the duplication in payment.

e) None of the above.

b) The obligation of PCIB to NAMAWU is already extinguished by reason of the payment

d) NAMAWU has the obligation to return the excess of P600,000 to PCIB.

e) NAMAWU has the obligation to return the excess of P600,000 to Atlas.

a) The cause of action of BPI to recover the balance is solutio indebiti.

b) BPI is entitled to interest on the amount due from demand up to satisfaction.

c) The interest to which BPI is entitled to is compensatory, not monetary.

d) Said interest is in the nature of loan or forbearance of money.

e) A has the obligation to pay the balance and interest.

5. In which of the following situations is the obligation not extinguished?

You might also like