OBLIGATIONS AND CONTRACTS

a.

Creditor refuses the performance without

just cause.

b.

The debtor is guilty of non-performance.

c.

Time is the controlling motive

d.

If the obligation bears interest

Multiple Choice Questions in Obligations and Contracts

1.

2.

3.

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.

5.

a.

Agreement

a.

In civil obligations

b.

Vinculum juris

b.

In positive obligation

c.

Contracts

c.

In obligation arising from crime

d.

Quasi-Contracts

d.

In natural obligation

This takes place when something is received when

there is no right to demand it, and it was unduly
delivered thru mistake.

6.

In Accion subrogatoria the creditor may exercise all of

the rights and bring all of the actions which the debtor
may have against third persons if:

a.

Solutio Indebiti

a.

If the account is personal

b.

Negotiorum Gestio

b.

The debtor's acts are fraudulent

c.

Vinculum juris

c.

d.

Prestation

The debtor has performed an act

subsequent to the contract, giving
advantage to other persons

d.

Creditor must have the right of return

against debtor

This happened when the creditor make a demand and

the obligor fails to deliver the thing.
7.

4.

In what instance may we consider that there is no

delay?

a.

Negligence

b.

Mora solvendi

c.

Mora accipiendi

d.

Compensatio morae

In Accion Pauliana Rescission, which involves the right

of the creditor to attack 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 provided:

a.

The debt is due and demandable

b.

There is a failure of the debtor to collect his

own debt from 3rd persons either through
malice or negligence

c.

The debtor's assets are insufficient

Demand is not necessary to incur delay when:

d.

8.

9.

The debtor has performed an act

subsequent to the contract, giving
advantage to other persons

It causes the extinguishment or loss of rights already

acquired upon the fulfillment of the condition, that is,
the happening of the event which constitutes the
condition. In other words, the fulfillment of which will
extinguish an obligation (or right) already existing.

a.

Condition subsequent

b.

Suspensive

c.

facultative condition

d.

positive condition

When the thing deteriorates with the debtors fault,

the creditor may choose one of the following:

a.

Mutual restitution

b.

Rescission (cancellation) of the obligation

with indemnity for damages

c.

Suffer the deterioration of the thing

d.

Institute an action for negligence.

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.

a.

Fortuitous events

b.

Condition

c.

Period

d.

Date and time

11. Anna Marie owes Reah P5,000 payable in one year, at

10% interest per annum. On maturity, Anna Marie pays

Reah P5,000 which Reah acknowledged having

received without mentioning the payment of interest.
Which best describes what happened to the interest?

a.

There is a rebuttable presumption that

Interest has been paid.

b.

Interest has already been paid.

c.

Interest will soon follow after payment of

the principal

d.

None of the above.

12. A period designated in the obligation is presumed

established for the benefit of:

a.

both the debtor and the creditor

b.

benefit of the creditor only

c.

benefit of the debtor only

d.

none of the above.

13. An obligation the fulfillment of which is not subject to

a condition but immediately demandable:

a.

Conditional obligation

b.

obligation with a period

c.

Pure obligation

d.

None of the above

14. Which DOES NOT correctly complete the sentence? An

obligation is a juridical necessity

a.

to give

b.

to do

c.

not to give

d.

not to do

d.

None of the statements is correct.

15. The obligation where only one party is bound is called

a.

unilateral

b.

Bilateral

c.

Real

d.

Personal

19. "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:
a.
b.
c.
d.

Mixed Condition
Potestative Condition
Casual Condition
Resollutory Condition

16. During the pendency of the suspensive condition in an

obligation to give, if the thing deteriorates through the
fault of the debtor

a.

the obligation shall be extinguished

b.

the debtor shall be obliged to pay damages

c.

the impairment shall be borne by the

creditor

d.

the creditor may choose between

rescission and fulfillment, with indemnity in
either case

17. Which of the following is NOT a source of obligation?

a.

Law

b.

Contracts

c.

Quasi-Contracts

d.

None of the above

18. Statement I A person alternatively bound by different

prestations shall completely perform one of them.

20. When a third person assumes the payment of the

obligation even without the knowledge and consent
of the debtor but with the consent of the creditor
a.
b.
c.
d.

21. Which of the following statements is false?

a.
An obligation to pay a certain amount in ten
annual installments is divisible.
b. Execution of a certain number of days of
work shall be divisible
c.
Obligations to give definite things and those
that are not susceptible of partial
performance shall be deemed divisible.
d. Accomplishment of work by metrical units
are divisible

22. Three of the following contracts are void. Which one is

not?
a.

Statement II The creditor can be compelled to receive part of

one and part of the other undertaking.

b.
c.

Which of the following is correct?

a.

Only Statement I is correct

b.

Only Statement II is correct.

c.

Both statements are correct.

There is delegation if debtor is released

There is subrogation
There is Novation
There is expromission if debtor is released

d.

Oral contract of partnership where real

estate is contributed as capital
Agent's authority to sell land is given orally.
Oral contract of partnership of three
partners and capital contribution is more
than P3,000 in cash
Written contract contemplating impossible
services

23. It is a mode of extinguishing an obligation when two

persons in their own right are creditors of each other.

a.
b.
c.
d.

Confusion
Compensation
Reformation
Novation

24. Which of the following is not an element of legal

compensation?
a.
b.
c.
d.

There is controversy or adverse claim over

any debts to be compensated
There are two or more debts of the same
kind
Debts to be compensated are due and
demandable
There are two or more persons who are
creditor or debtors of each other.

25. Contracts which cannot be sued upon unless ratified,

thus it is as if they have no effect yet are
a.
Voidable
b. Unenforceable
c.
Rescissible
d. Void

26. When the debtor binds himself to pay when his means
permit him to do so, the obligation is:
a.
Pure
b. Conditional
c.
Simple
d. With a period

27. If the obligor binds himself to perform his obligation as

soon as "he shall have obtained a loan" from a certain
bank, this obligation is:
a.
Resolutory
b. Conditional
c.
With a term
d. Suspensive

28. A contract is in the stage of conception when:

a.
The parties come to an agreement.
b. There is meeting of the minds.
c.
Negotiations are in progress.
d. The contract is perfected.
e.
29. A defective contract where damage or lesion is
essential
a.
Void
b. Rescissible

c.
Uneforceable
d. Voidable
30. This contract is without effect unless ratified:
a.
b.
c.
d.

Donation between husband and wife

Contract of sale between two insane
persons
Marriage between first degree cousins
Contract of sale between husband and wife

31. Rescission of contract can take place in this case

a.
When the seller cannot return the
installments paid to him by the buyer
b. When the party seeking resolution can
perform only as to part and as to remainder
c.
When the thing which is the object of the
contract is legally in the possession of a
third person who acted in bad faith
d. When he who demands rescission can
return whatever he may be obliged to
restore

32. Through insidious words or machinations, A was able

to induce B to enter into a contract which without
them B would not have agreed to it. There is
a.
Undue influence
b. Mistake
c.
Fraud
d. Misrepresentation
33. An instrument may be reformed
a.
When the real agreement is void
b. Simple donations inter vivos wherein no
condition is imposed
c.
Wills
d. When the instrument does not express the
true intention of the parties due to mistake

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

debt after I have arrived from abroad," this is
a.
Conditional
b. Void
c.
With a period
d. Unenforceable

35. When the characters of the creditor and the debtor are
merged in one and the same person, there is
extinguishment of the obligation by
a.
Compensation
b. Remission

c.
d.

Novation
Merger Of Rights

36. Which of the following contracts is not void ab initio?

a.
That which contemplates an impossible
service
b. That which is undertaken in fraud of
creditors
c.
Those whose object is outside the
commerce of men
d. That whose object did not exist at the time
of transaction

37. Contracts entered into in a state of drunkenness or

during a hypnotic spell are:
a.
Valid
b. Legal
c.
Voidable
d. Void
38. Delay in the giving or delivering of a thing
a.
Mora accipiende ex re
b. Mora accipiende ex persona
c.
Mora solvendi ex persona
d. Mora solvendi ex re