Obligations Flashcards

The following are the requisites of an obligation, except
A. Passive and active subject
B. Prestation
C. Efficient cause
D. Demand

The right of the creditor that is enforceable against a definite debtor is
A. Real right
B. Natural right
C. Moral right
D. Personal right

Which of the following is a civil obligation?
A. X obliges himself to pay Y P10,000 on October 30, 2009.
B. A is a debtor of B for P20,000 due on September 30, 1995.
C. The obligation of a husband and wife to observe fidelity.
D. The obligation of a catholic to hear mass every Sunday

Specific performance may not be possible in this civil obligation
A. A, a painter, obliges himself to paint the portrait of B on April 9, 2009
B. C, a farmer, obliges himself to give his only cow to D on February 14, 2009
C. E, a veterinarian, obliges himself to give one of his dogs to F on May 1, 2009
D. G, a registrar of deeds, obliges himself to effect registration of H’s parcel of land on
February 28, 2009.

The source of obligations which is a rule of conduct, just and obligatory, promulgated by
legitimate authorities for common good, benefit and observance
A. Contracts
B. Quasi-contracts
C. Delicts
D. Law

A juridical necessity to give, to do or not to do
A. Civil obligation
B. Natural obligation
C. Moral obligation
D. Social obligation

They give a right of action to compel their performance
A. Civil obligation
B. Moral obligation
C. Natural obligation
D. Social obligation

The obligee has a right to enforce the obligation against the obligor in a court of law
A. Civil obligation
B. Moral obligation
C. Natural obligation
D. Social obligation

This is based on equity and justice
A. Civil obligation
B. Moral obligation
C. Natural obligation
D. Social obligation

The person in whose favor the obligation is constituted
A. Obligor
B. Obligee
C. Passive subject
D. Debtor

Which are synonymous to obligee? Choose 2.
1. Creditor 2. Active subject 3. Debtor 4. Passive subject

The person who has the duty of giving, doing or not doing.
A. Obligee C. Active subject
B. Obligor D. Creditor

Which are synonymous to obligor? Choose 2.
1. Creditor 2. Active subject 3. Debtor 4. Passive subject

The object or subject matter of the obligation
A. Prestation C. Active Subject
B. Vinculum D. Passive subject

The person in whose favor the obligation is constituted
A. Obligor
B. Obligee
C. Passive subject
D. Debtor

The efficient cause or juridical tie why the obligation exists
A. Active subject
B. Passive subject
C. Prestation
D. Vinculum

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

The following are sources of obligations derived from law, except:

A. Contracts

B. Quasi-contracts

C. Delicts

D. Quasi-delicts

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

Which statement is correct:

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 right to demand the payment effected by A.
Second Answer:

No, the payment extinguished the natural obligation.

The duty to pay taxes and support one’s family are obligations arising from
A. Law
B. Contracts
C. Quasi-contracts
D. Delicts

The obligation of husband and wife to render mutual help and support arises from
A. Contract
B. Law
C. Quasi-contract
D. Quasi-delict

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. contracts

B. quasi-contracts

C. delicts

D. quasi-delicts

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. Delicts
D. Quasi-delicts

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 indebiti

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 indebiti

True or False

S1: A quasi-contract is an implied contract

S2: A defendant who is acquitted in a criminal case is no longer liable civilly

Tort or culpa aquiliana is

A. Quasi-contract
B. Quasi-delict
C. Negotiorum gestio
D. Solutio indebiti

A fault or act 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 indebiti

Omission of the diligence which is required by the circumstances of person, place and time.
A. Ignorance
B. Negligence
C. Impotence
D. Insanity

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.
B. Observing extraordinary diligence
C. Of a father of a good family
D. Observing ordinary diligence

Ordinary diligence is
A. Diligence of a good father of a family.
B. Extraordinary diligence
C. Diligence required by law
D. Diligence of a father of a good family.

The creditor has the right to the fruits of the thing.
A. From the time the obligation to deliver it arises.
B. From the time the fruits have been delivered.
C. From the time there is meeting of the minds.
D. From the perfection of the contract.

From the time the fruits have been delivered, the creditor shall acquire
A. Real right
B. Personal right
C. Moral right
D. Inchoate right

If a thing is capable of particular designation.
A. Generic
B. Specific
C. Indeterminate
D. Indeterminable

If a thing refers to a class, to a genus and cannot be pointed out with particularity.
A. Generic
B. Specific
C. Determinate
D. Indeterminable

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 is 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.
B. Both answers are not correct.
C. Only the first is correct.
D. Only the second is correct.

The following are kinds of fruits of an obligation, except
A. natural
B. industrial
C. civil
D. penal

Spontaneous products of the soil and the offspring and other products of animals
A. natural
B. industrial
C. civil
D. penal

Products of the soil through cultivation or intervention of human labor.
A. natural
B. industrial
C. civil
D. penal

Fruits arising out of contracts- like rental payments.
A. natural
B. industrial
C. civil
D. penal

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 arrives or the
condition happens.
A. True; true
B. True; false
C. False; true
D. False; false

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 expense to A.
C. A can insist on just paying B damages or the monetary value of the sugar.
D. B may require another person to deliver the sugar and charge the expenses to A.

Where 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.

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 C. False; true
B. True; false D. False; false

Debtor’s default in personal obligation.
A. Mora accipiendi
B. Mora solvendi ex-re
C. Mora solvendi ex-persona
D. Compensatio morae

Default on the part of the creditor
A. Mora accipiendi
B. Mora solvendi ex-re
C. Mora solvendi ex-persona
D. Compensatio morae

Default on the part of both parties.
A. Mora accipiendi
B. Mora solvendi ex-re
C. Mora solvendi ex-persona
D. Compensatio morae

A borrowed money from B payable on December 10, 2008. 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 obliged himself to deliver to B the following:
1) 2008 Sing-It Yamaha Organ
2) Magalona passenger jeepney with engine No. 69 and chasis No. 88
First Statement- In case A failed to deliver the 2008 Yamaha Organ, the court may compel A to deliver the 2008 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.

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 obligations are guilty of fraud, negligence, or
delay and those who in any manner contravene the tenor threof, are liable for damages

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 observed in the
performance of an obligation, that which is expected of a father of a good family shall
be required.

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 condition, 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 the contract of sale, the vendor has a right to the fruits
of the thing from the time the obligation to deliver arises.

A is obliged to deliver his only car to B on November 20, 2009. If A does not deliver, and
on November 22, 2009, a typhoon destroys the car.
A. A is not liable because the obligation is extinguished.
B. A is liable because he is in delay.
C. A and B will divide the loss equally.
D. A’s obligation is converted into a monetary obligation.

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 accessions and accessories, even though they may not have been mentioned.

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

The consequential damages suffered by the injured person and those suffered by his family
or third person by reason of the act.
A. Restitution C. Indemnification
B. Reparation D. Starvation

Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors.
A. Accion reinvindicatoria
B. Accion pauliana
C. Accion subrogatoria
D. Accion quanti-minoris

A borrower agreed, that in case of non-payment of his debt, to render services as a servant.
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.

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?
First Answer - No, because no person shall be responsible for fortuitous events.
Second Answer – Yes, because A is negligent in making the order without taking due care to
avoid a reasonable foreseeable injury to B.

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 B.
B. A can recover the half-fare from the carrier.
C. A can recover the ½ from B and ½ from the carrier.
D. A can recover half-fare from B only.

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 B.
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 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 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 in generic.

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?
II – 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 event, Is A’s liability extinguished?

I - There is no delay in an obligation not to do something.
II – Solutio indebiti and negotiorum gestio are implied contracts.

I - Consent of the parties is required in quasi-contract.
II – The creditor acquires real rights over the thing from the time the obligation to deliver
arises.

The creditor has a right to the fruits of the thing from the time
A. The thing is delivered.
B. The fruits are delivered.
C. The obligation to deliver the thing arises.
D. The sale is perfected.

The buyer has a right to the fruits of the thing from the time
A. The thing is delivered.
B. The fruits are delivered.
C. The obligation to deliver the thing arises.
D. The sale is perfected.

Which is not considered as quasi-contract?
A. Solutio 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.

No longer enforceable by court action but is binding on the party who oblige with it in
conscience is

A. Civil obligation

B. Natural obligation

C. Moral obligation

D. Conditional obligation

If A pays a debt that has prescribed
1. Not knowing it has prescribed, A can recover on the ground of undue payment.
2. Knowing it has prescribed, A cannot recover for this would be a case of natural
obligation.

On June 24, 2009 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 Ondoy, 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.

This obligation is demandable at once when it
A. has a resolutory condition.

B. has a suspensive condition

C. is with a term ex-die.

D. has a period

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 promise 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 equitably reduced.
D. A will have to give B another car of equivalent value.

A period with a suspensive effect.
A. I will support you beginning January 1 of next year.
B. I will support you until January 1 of next year.
C. I will support you if A dies of TB.
D. I will support you if A marries B.

A period with a resolutory effect.
A. I will support you beginning January 1 of next year.
B. I will support you until A dies.
C. I will support you if A dies.
D. I will support you if A dies of TB.

The obligation begins only from a day certain or upon the arrival of said period.
A. Ex die C. Conditional
B. In diem D. With a period

The obligation remains valid up to a time certain but terminates upon the arrival of said
period.
A. With a period C. Ex die
B. Conditional D. In diem

Anything paid or delivered before the arrival of the period, the obligor being unaware of the period or believing that the obligation has become due and demandable.
A. May be recovered without interests.
B. May be recovered with interests.
C. May be recovered with fruits and interests.
D. May not be recovered.

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

B. Of the creditor only

C. Of the debtor only

D. Of third persons

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 the mistress of A.
C. A will give B P100,000 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.

Where two or more prestations have been agreed upon but only one is due, the obligation is

The right of choice in an alternative obligation belongs
A. To the debtor
B. To the creditor
C. To both the creditor and debtor
D. To third person

A is obliged to give B, at A’s option either object No. 1, Object No. 2, or Object No. 3. If all objects were lost thru A’s fault, which is correct?
A. The value of the first thing lost plus damages must be given to B.
B. The value of the last thing lost plus damages must be given to B.
C. The value of any of the things lost plus damages must be given to B.
D. The obligation is extinguished.

A is obliged to give B, at A’s option either object No. 1, Object No. 2, or Object No. 3.

I - If objects nos. 1and 2 were destroyed by a fortuitous event and later object No. 3 is destroyed by A’s fault, A would still be liable.

II - If objects nos. 1 and 2 were destroyed by A’s fault and later object No. 3 is destroyed by fortuitous event, A would still be liable

A is obliged to give B either objects No. 1 or 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:

Any of the debtors is bound to render compliance of the entire obligation

In a joint obligation, joint means any of the following, except
A. pro-rata

B. proportionate

C. mancomunada simple

D. individually and collectively

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.

6. In Facultative obligations, if substitution has been made 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.

In Facultative obligations, if substitution has been made 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.

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 felony.
D. liability of partners arising out of a contract.

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 committed by one of the partners acting in the ordinary course of business.

Where only one prestation has been agreed upon, but the obligor may render another in substitution, the obligation is

Where two or more prestations have been agreed upon, and all of them must be performed,
the obligation is

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

B. P1,000 from A and P1,000 from B

C. P500 from A or P500 from B

D. P500 from A and P500 from B

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

B. P500 from A or P500 from B

C. P500 from A and P500 from B

D. P250 from A and P250 from B

A and B 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

B. P500 from A or P500 from B

C. P500 from A and P500 from B

D. P250 from A and P250 from B

A and 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

B. P250 from A or P250 from B

C. P250 from A and P250 from B

D. P500 from A and P500 from B

This is synonymous to joint obligation

A. Joint and several

B. In solidum

C. Individually and collectively

D. Mancomunda simple

This is synonymous to solidary obligation

A. Pro-rata

B. Mancomunada

C. Proportionate

D. Juntos o separadamente

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 C. P2,000
B. P1,500 D. P3,000

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 exams and C will pay in 2009. In 2007, how much can D demand from C?
A. P9,000 C. P3,000
B. P6,000 D. P 0

A, B and C are solidary debtors of D for P3,000. D remitted C’s share. A therefore paid later only P2,000. A can recover reimbursement from B in the amount of
A. P1,000 C. P500
B. P1,500 D. P0

A, B and C are solidary debtors of D for 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 C. P333
B. P500 D. P0

A, B and C are solidary debtors of D for 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 C. P1,000
B. P2,000 D. P 0

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 obligation is extinguished up to P60,000.

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
B. Conjoint obligation
C. Facultative obligation
D. Obligation with a penal clause

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.

This is an obligation with a resolutory obligation.
A. I’ll give you P10,000 if you pass the 2009 CPA board examination.
B. I’ll give you my car now, but should you fail in any of your subjects, your ownership will cease and it will be mine again.
C. I’ll give you P10,000 on December 31, 2009.
D. I’ll give you P10,000 if A dies of TB.

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 C. False; true
B. True; false D. False; false

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 further 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.

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 that the event cannot occur.

I - A father promised to give his son 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 a car 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 31,2009. If by December 31, 2009, has not yet married her boyfriend, or if prior thereto, her boyfriend has died, the obligation is extinguished.

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 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 deemed for the benefit of B.

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 the creditor the guarantees 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.

I - “We promise to pay” when there are two or more signatures=joint liability
II – “ I promise to pay” when there are two or more signatures= solidary liability

A oblige himself to pay B P100,000 in 30 days plus a penalty of P10,000 if A fails to pay the obligation in due time. A failed to pay the obligation in 30 days, B can demand from A
A. The principal of P100,000 plus P10,000 penalty.
B. The principal of P100,000 plus P10,000 penalty plus legal interest.
C. The principal of P100,000 plus P10,000 penalty, plus legal interest, plus damages.
D. The principal of P100,000 plus legal interest, plus damages.

The creditor is entitled to recover damages and interest in addition to the penalty stipulated
1. When the debtor refuses to pay the penalty.
2. When the debtor is guilty of fraud in the fulfillment of the obligation.

Where a property is alienated to the creditor in satisfaction of a debt in money.

A. Dation in payment

B. Payment by cession

C. Application of payment

D. Consignation

Where a debtor transfers all his properties not subject to execution in 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

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

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

The meeting in one person of the qualities of creditor and debtor with respect to the same
obligation.
A. Confusion C. Novation
B. Compensation D. Condonation

When two persons on their own right are creditors and debtors of each other
A. Confusion C. Novation
B. Compensation D. Condonation

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 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 latter has been stated.

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 a bank deposit.

The substitution or change of an obligation by another, which extinguishes or modifies the
first
A. Confusion C. Novation
B. Compensation D. Consignation

Novation which changes the object or the principal condition of the obligation
A. Real C. Mixed
B. Personal D. Partial

Novation which changes the parties to the obligation
A. Real C. Mixed
B. Personal D. Partial

Expromission, delegacion or subrogating a third person in the right of the creditor.
A. Real C. Mixed
B. Personal D. Partial

Novation which changes the object and parties of the obligation.
A. Real C. Mixed
B. Personal D. Partial

Substitution of debtor where the initiative comes from a third person.
A. Delegacion C. Subrogation
B. Expromission D. Novation

Substitution of debtor where the initiative comes from the debtor.
A. Delegacion C. Subrogation
B. Expromission D. Novation

The transfer to a third person of all the rights appertaining to the creditor.
A. Delegacion C. Subrogation
B. Expromission D. Novation

Legal subrogation is presumed in the following. Which is not correct?
A. When a third person, not interested in the obligation, pays with the approval of the creditor.
B. When a creditor pays another creditor who is preferred, even without the debtor’s knowledge.
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 debtor, a person interested in the fulfillment of the obligation pays, without prejudice to the effects of confusion as to the latter’s share.

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.

The obligation is demandable on the date of the obligation and shall continue to be in force
up to the arrival of the day certain:
A. Resolutory period

B. Suspensive period

C. Indefinite period

D. Legal period

One is not a requisite needed 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

A, B and C are jointly liable to D in the amount of P9,000. D assigns the entire credit to A. In this case:
A. The obligation is extinguished because of confusion
B. B and C will not be liable to A
C. A becomes the new creditor and may demand from B and C P4,500 each
D. A’s share in the obligation is extinguished because of confusion.

A owes B P10,000 due on March 10, 2010. A owes B P8,000 due on March 11, 2010. A obliged himself to deliver to B a cow valued at P6,000 on March 12, 2010. On March 13, 2010, a paid B P10,000. If A makes an application of payment,
A. The P10,000 should be applied to the first debt only
B. The P10,000 should be applied to the second debt only
C. The P10,000 may be applied either to the first debt or second debt
D. The P10,000 may be applied to the first debt, or to the second debt or to the third debt