Obligations and Contracts

Question 1

The following are other terms for “passive subject”, except:

a. Obligor
b. Debtor
c. Creditor
d. None of the choices

Answer 1

c

Question 2

This refers to the reason as to why the obligation exists.

a. Prestation
b. Subject
c. Obligation
d. Efficient cause

Answer 2

d

Question 3

Choose the incorrect statement.

Statement I - When a testate or intestate heir voluntarily pays a debt of the decedent below the value of the property which he received by will or by the law of intestacy from the estate of the deceased, the payment is valid and cannot be rescinded by the payer.

Statement II - The obligee is the person in whose favor the obligation is constituted.

a. Statement I only
b. Statement II only
c. Statements I and II
d. Neither Statement I nor II

Answer 3

a

Question 4

A is obliged to drive B to the latter’s friend’s wedding on July 1, 2023. Unfortunately, A died on June 25, 2023 due to dengue, leaving behind C, his 8-year old daughter. Can B compel C to perform A’s obligation?

a. Yes, since all rights acquired in virtue of an obligation are transmissible.
b. No, since all rights acquired in virtue of an obligation are transmissible.
c. No, since the nature of the obligation is that it is not transmissible.
d. Yes, since A’s driving skills are automatically passed down to his daughter, C.

Answer 4

c

Question 5

Statement I - Obligations ex lege are presumed. Those expressly determined in this Code or in special laws are not demandable.

Statement II - Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.

Which of the statements above are correct?

a. I only
b. II only
c. I and II
d. None of the statements are correct

Answer 5

b

Question 6

J is a practicing physician in La Union. As such, he is required to pay taxes to the government. What source of obligation is this?

a. Obligations ex lege
b. Obligations ex contractu
c. Obligations ex quasi-contractu
d. Obligations ex delicto

Answer 6

a

Question 7

X signed an exclusive contract with Meralco Bolts to play with them for 5 years without an extension, to begin in 2022. Under the contract, should X join another team while being under contract with MB, he will be liable for damages.

Due to poor performances on the part of the team, X decided he has enough after playing for 1 year with MB. At the same time, X was approached by Magnolia Hotshots, which offered an exclusive contract to play under them for 5 years, extendable for 3 additional years. X signed the contract immediately. MB learned of the contract signing and immediately sued X in court for breaching the contract. Will MB’s court action prosper?

a. No, since involuntary performance is contrary to morals; hence, MB must allow X to join the Hotshots.
b. No, since the contract is void at the beginning.
c. Yes, since the contract between X and MB is binding between them and they cannot withdraw without valid reason.
d. Yes, since the poor performance of the team is a sign of negligence.

Answer 7

c

Question 8

X is contracted by his friend Y, who is going to Bohol for a 3-day business convention, to guard the latter’s sari-sari store. Y promises to pay X P50,000 if he fulfills his obligation.

Two days later, a strong earthquake hit the town. X selflessly entered Y’s store, grabbed all the goods and relocated them to a safe place. What obligation is present here?

a. Law
b. Quasi-contract
c. Quasi-delict
d. Contract

Answer 8

d

Question 9

J ordered a Valentine’s Day package from Y. The package contains 1 box of chocolates, a random-color rose, and a medium-size teddy bear. Upon receiving the package, he noticed that, in addition to the medium-size teddy bear, he also received a large-size teddy bear. What is this situation called?

a. Solutio Indebiti
b. Negotiorum Gestio
c. Quasi-delict
d. Contract

Answer 9

a

Question 10

J died of natural causes in his boarding house. J was the only occupant in his room when he died. Noticing the foul smell, K, a third person, checked on J’s room and found his rotting corpse. Acting quickly, K had J’s corpse collected by the funeral parlor and paid the funeral expenses. J’s family learned of his death, as well as the fact that K paid the funeral expenses. K wants to claim reimbursement for the funeral expenses he paid from J’s family. Can K claim the funeral expenses?

a. Yes, since no one should be justly enriched at the expense of another.
b. No, since J’s family had knowledge that K paid the funeral expenses.
c. No, since J’s family had no knowledge that K paid the funeral expenses.
d. Yes, since the contract between K and J’s family is binding.

Answer 10

b

Question 11

Which of the following are the criminal liabilities established in the Civil Code?

a. Restitution
b. Reparation
c. Indemnification
d. None of the choices

Answer 11

d

Note: it should be civil liabilities, not criminal.

Question 12

F, an elementary student, accidentally injured G, his friend, inside their school. Who is responsible?

a. F
b. H, a fellow student who witnessed the incident
c. K, the school janitor
d. D, the school principal

Answer 12

d

Question 13

An obligation whose performance does not depend upon a future or uncertain event is called a:

a. Pure obligation
b. Conditional obligation
c. Casual obligation
d. Obligation with a term

Answer 13

a

Question 14

The following are examples of conditions as to whom or where it depends, except for one:

a. Casual
b. Potestative
c. Resolutory
d. Mixed

Answer 14

c

Question 15

J promised to give K P100,000 if he marries W on or before December 31, 2023. However, W died on December 28, 2023. What is the status of the condition?

a. Extinguished
b. Void
c. Not extinguished
d. Voidable

Answer 15

a

Question 16

S promised to give T P500,000 if he manages to ride his road bike from Agoo, La Union to Baguio City blindfolded within 5 minutes. What is the status of the obligation?

a. Voidable
b. Valid
c. Unenforceable
d. Void

Answer 16

d

Question 17

J promised to give K his Special Edition TAG-Heuer watch on July 7, 2023. If the watch was lost on July 5 without J’s fault, what is the remedy?

a. J will be liable for damages equal to the value of the watch.
b. J will be liable for damages equal to the current fair value of the watch.
c. The obligation is extinguished, and J will be liable for damages
d. The obligation is extinguished. J will not be liable for damages

Answer 17

d

Question 18

J promised to give K his Special Edition TAG-Heuer watch on July 7, 2023. If the watch rusts quickly on July 4, 2023 because of J’s negligence, what is/are the remedy of the creditor?

a. Exact fulfillment and ask for damages
b. The obligation is extinguished, and the debtor will be held liable for damages
c. J is liable for damages
d. Impairment is borne by the creditor
e. Choices a and b

Answer 18

e

Question 19

A ____________ is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.

a. Sale
b. Agency
c. Obligation
d. Contract

Answer 19

d.

Question 20

True or false: in order to determine whether a contract exists, the number of parties should be determined, which should be at least 2 parties.

Answer 20

False.

What is important is not the number of parties in order to determine whether a contract exists, but the number of declaration of wills, which should be at least two (2).

Question 21

J, guardian of F (11 years of age), sold the latter’s property to himself. What is the status of the contract?

a. Void
b. Voidable
c. Valid
d. Unenforceable

Answer 21

a.

Question 22

The following are the natural elements of a contract, except for one:

a. Warranty against hidden defects
b. Warranty against eviction
c. Warranty against known defects
d. None of the choices

Answer 22

c.

Question 23

This stage of a contract is where the parties provide for their offers and bargain with each other.

a. Generacion
b. Consummation
c. Perfection
d. Death

Answer 23

a.

Other terms for Negotiation is:

1. Preparation
2. Conception
3. Generacion

Question 24

The following statements are false as to offer and acceptance, except for one:

a. The offer must be absolute
b. The acceptance must be certain
c. An acceptance must be express, but it can never be implied
d. A qualified acceptance constitutes a counter-offer

Answer 24

d.

Question 25

J offered to sell his car to K on May 1, 20x1, via a letter. K received the letter the next day and wrote to J, signifying his acceptance on the same day. K sent the letter on May 2, 20x1 and J received the letter two (2) days later. When will acceptance take effect if the Cognition Theory is followed?

a. May 1
b. May 3
c. May 4
d. May 2

Answer 25

c.

Question 26

X offered to sell to M his Ford Ranger pickup truck for P1.5M on June 11, 20x1. M wanted to have a vehicle for his own use and is thinking whether to buy it or not. However, due to unforeseen circumstances, X died a week later due to heart attack. Is the offer still effective?

a. Yes. Acceptance here is not yet conveyed.
b. Yes, as long as the Ford Ranger pickup still exists.
c. No. Since X died, the offer becomes ineffective, and M hasn’t conveyed his acceptance yet to X.
d. No. Since X died, the offer becomes ineffective, and M has already conveyed his acceptance to X.

Answer 26

c.

Question 27

True or false: Advertisements of things for sale are not definite offers, unless it appears otherwise.

Answer 27

True

Question 28

This kind of simulation makes the parties bound by their real agreement.

a. Relative simulation
b. Absolute simulation
c. Mutual simulation
d. None of the choices

Answer 28

a.

Question 29

This is the fitness to be the subject of legal relations and is lost only through death.

a. Juridical capacity
b. Absolute incapacity
c. Relative incapacity
d. Legal capacity

Answer 29

a.

Question 30

One of these people can give consent to a contract:

a. W, a 30-year old PWD (Deaf-mute). W finished BSBA FinMan and is employed in a bank.
b. J, a 15-year old unemancipated minor.
c. L, a 40-year old salaryman who signed a contract of sale while under the influence of alcohol.
d. A, a 28-year old insane person.

Answer 30

a.

Despite being a deaf-mute, W knows how to read and write.

L, despite being a “perfectly capable” person, is drunk when he signed the contract if sale. Therefore, he cannot give consent to a contract.

Question 31

On August 1, 20x1, Jack, who is insane (yet under a lucid interval), signed a contract of sale to sell his motorcycle to M, a 19-year old college student. What is the status of the sale?

a. Voidable
b. Void
c. Valid
d. Unenforceable

Answer 31

c.

Note: Jack is under lucid interval.

Question 32

The following people are considered incompetent under the Rules of Court who may be placed under guardianship, except for one:

a. A, a prodigal
b. L, a hospitalized leper
c. J, a PWD (deaf and dumb)
d. All of the choices are considered “incompetents”

Answer 32

d.

Question 33

K and A, married, entered into a contract of partnership where they will exercise their accountancy profession. What is the status of the contract?

a. Void
b. Valid
c. Voidable
d. Unenforceable

Answer 33

b.

The contract entered is a General Professional Partnership. If, however, what they have entered is a contract of sale or a contract of partnership (that is not a GPP), then it would be void.

Question 34

Effect when the debtor pays the creditor of his obligation by mistake AFTER prescription?

a. Debtor may recover
b. Debtor may never recover
c. Creditor may retain the payment
d. Creditor may not retain the payment

Answer 34

b.

Debtor may never recover because it is a case of a natural obligation

Question 35

Effect when the debtor VOLUNTARILY pays the creditor of his obligation after prescription

a. Valid even prescription; however, payment cannot be retained by the creditor
b. Void; however, creditor may recover
c. Void; creditor cannot recover
d. Valid ever prescription; creditor may retain the payment

Answer 35

d.

Question 36

E & F jointly and voluntarily managed the propertyof K in Nueva Ecija without the latter’s consent. However, 3 days later, the property was destroyed due to F’s negligence. The nature of obligation of E & F:

a. E & F liable jointly
b. E & F liable solidarily
c. Joint, but only F is liable
d. Solidary, but only F is liable

Answer 36

b.

Question 37

H, the payee of a check worth Php20,000, encashes such check to UnionBank Manila Branch. However, L, the bank teller, gave him Php200,000. What is the obligation of L?

a. Since this is a contract, H should pay L 180k plus legal interest
b. Since this is solutio indebiti, L should give back the 180k excess to H
c. Since this is solution indebiti, H should be the one to give back the excess 180k to the bank
d. Any of the choices

Answer 37

c.

Question 38

The source of obligation when a person who is constrained to pay the taxes of another is entitled to reimbursement from the latter?

a. Law
b. Contract
c. Quasi-Contract
d. Crime

Answer 38

c.

Question 39

Which source of obligation governs this: The right of children to assistance, including proper care and nutrition, and special protection from all forms of neglect, abuse, cruelty, exploitation, and other conditions prejudicial to their development

a. Contract
b. Quasi-contract
c. Quasi-delict
d. Law

Answer 39

d.

Question 40

L was driving C’s taxi at 200kph at Shaw Boulevard without any lights at around 10 PM when he crashed into a concrete barrier and rammed and killed B, a pedestrian. P, the passenger, suffered broken bones as a result of the accident. The obligation of L to B is:

a. Contract (of carriage)
b. Quasi-contract
c. Crime
d. Quasi-delict

Answer 40

c.

Question 41

L was driving C’s taxi at 200kph at Shaw Boulevard without any lights at around 10 PM when he crashed into a concrete barrier and rammed and killed B, a pedestrian. P, the passenger, suffered broken bones as a result of the accident. The obligation of L to P is:

a. Contract (of carriage)
b. Quasi-contract
c. Crime
d. Quasi-delict

Answer 41

d.

Question 42

L was driving C’s taxi at 200kph at Shaw Boulevard without any lights at around 10 PM when he crashed into a concrete barrier and rammed and killed B, a pedestrian. P, the passenger, suffered broken bones as a result of the accident. The obligation of C to B and P is:

a. Contract (of carriage)
b. Quasi-contract
c. Crime
d. Quasi-delict

Answer 42

d

L already acted beyond his capacity as the taxi driver to safely drive P to his destination.

Question 43

This provides that where both parties are negligent but the negligent act of one is appreciable late in point of time than that of the other, the one who had the last clear opportunity to avoid the impending harm but failed to do so, is chargeable with the consequence.

Answer 43

Doctrine of last clear chance

Question 44

Culpa aquiliana vs Culpa Contractual:

a. Former is based on contract, not law

b. Former is based on delict, not on contract

c. In order to warrant recovery, there should be a necessity to prove negligence for culpa aquiliana

d. In order to warrant recover, there shouldn’t be any necessity to prove negligence for culpa aquiliana

Answer 44

c.

Question 45

Choose the FALSE statement

a. Loss of a determinate thing through fortuitous event doesn’t extinguish an obligation

b. A determinate thing is something that is susceptible of particular designation/specification

c. As a general rule, debtor is not liable in case of fortuitous event, but such can be liable if there was delay

d. All of these statements are false

Answer 45

a.