Obligations

Quiz 3
Part One
Multiple Choice. Choose the best answer. Write the letter only.
Consider the statement true only when it is absolutely true.
a. Both are true
b. Both are false
c. No. 1 is true, No. 2 is false
d. No. 1 is false, No. 2 is true
1. Statements: c. No. 1 is true, No. 2 is false
It is presumed that the accessory obligation of pledge has been remitted when the thing
pledged,
after the delivery to the creditor, is found in the possession of the debtor, or of a third person
who
owns the thing.
The delivery to and acceptance by the creditor of a cashiers check produces the effect of
payment
of the debtors obligation.
2. Statements: b. Both are false
Whenever the thing is lost in the possession of the debtor, it shall be presumed that the loss was
due to his fault.
Legal subrogation requires the consent of the original parties and of the third person.
3. Statements: b. Both are false
When the debt of a thing certain and determinate proceeds from a criminal offense, the debtor
shall
not be exempted from the payment of its price, whatever may be the cause for the loss.
When the principal obligation is extinguished in consequence of a novation, accessory
obligations
subsist.
4. Statements: b. Both are false
Whenever the private document in which the debt appears is found in the possession of the
debtor,
it shall be conclusively presumed that the creditor delivered it voluntarily.
Payment shall be made to one of the parties to the constitution of the obligation to extinguish the
obligation.

5. Statements: b. Both are false

Payment made by a third person who does not intend to be reimbursed by the debtor is deemed
to
be a donation, which requires the debtors consent. If the debtors consent is not given the
obligation is not extinguished.
Dation in payment is governed by the law of sales.
6. Statements: a. Both are true
Legal compensation shall not be proper when one of the debts arises from a depositum.
If a person should have against him several debts which are susceptible of compensation, the
rules on the application of payments shall apply to the order of the compensation.
7. Statements: d. No. 1 is false, No. 2 is true
In partial compensation, no obligation is extinguished.
When one or both debts are rescissible or voidable, they may be compensated against each
other
before they are judicially rescinded or avoided.
8. Statements: d. No. 1 is false, No. 2 is true
In case an extraordinary inflation or deflation of the currency stipulated should supervene, the
value of the currency at the time of payment shall be the basis of payment.
If the debt produces interest, payment of the principal shall not be deemed to have been made
until
the interests have been covered.
9. Statements: c. No. 1 is true, No. 2 is false
An obligation which consists in the delivery of a determinate thing shall be extinguished if it
should
be lost or destroyed due to a fortuitous event.
Compensation shall take place in reciprocal obligations.
10. Statements: b. Both are false
The guarantor may not set up compensation as regards what the creditor may owe the principal
debtor.
The obligation is extinguished from the time the characters of creditor and debtor are
compensated
in the same person.
Part Two

Multiple Choice. Choose the best answer. Write the letter only.
1. In three of the following cases, compensation shall not be proper. Which is the exception?
a. Commodatum
b. Gratuitous support
c. Civil liability arising out of criminal offense
d. Bank deposit
2. When two (2) persons in their own right are debtors and creditors of each other, there is:
a. Confusion
b. Compensation
c. Consignation
d. Novation
3. A owes X P50,000.00 payable on or before June 30, 1999. S who is not a party to the
contract and without the consent and against the will of A paid X the P50,000.00 on April 1,
1999
when the prevailing rate of interest was 12% per annum.
a. S can ask reimbursement from A in the amount of P50,000.00 plus 12% interest from April 1
to June 30, 1999.
b. S can ask reimbursement from A in the amount of P50,000.00
c. S cannot ask reimbursement from A because the payment by S is without the consent and
against the will of A.
d. S can ask refund from X because the payment by S was against the will of A.
4. When an obligation is extinguished because of the passage of time, this is:
a. Fulfillment of resolutory condition
b. Arrival of a resolutory period
c. Novation
d. Rescission
5. The following shall produce the effect of payment of debts:
a. Delivery of check
b. Tender of central bank notes
c. Delivery of promissory note
d. Dacion en pago
6. 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 is generic
c. When the thing is lost before the debtor has incurred in delay
d. When the thing lost is specific
7. Which of the following is not an element of legal compensation?
a. Debts to be compensated are due and demandable
b. There is controversy or adverse claim over any debts to be compensated
c. There are two or more debts of the same kind

d. There are two persons who are creditors and debtors of each other
8. Which of the examples given below can legal compensation take place?
a. A owes B P1,000 due on June 30, 1993. B owes A P1,000 due on June 30, 1993 but C has
filed an adverse claim against A.
b. A owes B P1,000 payable October 31, 1993. B owes A P1,000 due on October 31, 1993.
c. A owes B P1,000 with C as his guarantor. B owes C P1,000
d. A owes B P1,000 payable May 31, 1993. B to deliver to A 2 piculs of sugar worth P1,000 on
May 31, 1993.
9. A owes solidary creditors XYZ P10,000. There is remission of the debts when:
a. X borrows P10,000 from A.
b. X waives partially the obligation of P10,000 to A.
c. Z makes a will giving the P10,000 debt to A as legacy
d. Y tells A that instead of paying P10,000, A shall just deliver a ring to Y.
10. Which of the following is not a special mode of payment?
a. Dacion en pago
b. Payment by cession
c. Tender of payment and consignation
d. Prescription