QUIZ 1 MIDTERM LAW

1. Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat docked in Subic. Before
they could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall
not exempt Roy and Carlos from the obligation. Owing to the loss of the motor boat, such obligation is
deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary?
a. Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are
entitled.
b. Solidary or joint upon the discretion of Sam.
c. Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat.
d. Joint since the conversion of their liability to one of indemnity for damages made it joint.
2. Any of the debtors is bound to render compliance of the entire obligation.
a. alternative b. facultative c. joint d. solidary
3. In a joint obligation, joint means any of the following, except
a. pro-rata c. mancomunada simple
b. proportionate d. Individually and collectively
4. 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
5. 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
6. Where two or more prestations have been agreed upon, and all of them must be performed, the
obligation is
a. Alternative b. Facultative c. Conjoint d. Solidary
7. 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 c. P500 from A or P500 from B
b. P1,000 from A and P1,000 from B d. P500 from A and P500 from B
8. 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 c. P500 from A and P500 from B
b. P500 from A or P500 from B d. P250 from A and P250 from B
9. A and B are 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 c. P500 from A and P500 from B
b. P500 from A or P500 from B d. P250 from A and P250 from B
10. 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 c. P250 from A and P250 from B
b. P250 from A or P250 from B d. P500 from A and P250 from B
11. This is synonymous to joint obligation
a. Joint and several
b. In solidum
c. Individually and collectively
d. Mancomunada simple
12. This is synonymous to solidary obligation
a. Pro-rata b. Mancomunada c. Proportionate d. Juntos o separadamente
13. 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 b.P1,500 c. P2,000 d. P3,000
14. In 2020, A, B and C bound themselves in solidum to give D P9,000 subject to the following conditions: A
will pay in 2020; B, if D passes the 2021 CPA board exams; and C will pay in 2022. In 2020, how much
can D demand from C?
a. P9,000 b. P6,000 c. P3,000 d. P0
15. 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 b. P1,500 c. P500 d. P0
16. A, B and C are solidary debtors of D for P3,000. D remitted C’s share. A therefore paid later only P2,000.
If B is insolvent, A can recover from C the amount of
a. P1,000 b. P1,500 c. P500 d. P0
17. A, B, and C are solidary debtors of D in the amount of 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 b. P500 c. P333 d. P0
18. A, B, and C are solidary debtors of D in the amount of 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 b. P2,000 c. P1000 d. P0

ObliCon by Atty. Bernard D. Bakilan, CPA, LLM Page 1 of 2

19. A, B, and C are solidary debtors of D in the amount of P3,000 but A was incapacitated to give his
consent as he was a minor. If D sues A, how much will A be liable for?
a. P3,000 b. P2,000 c. P1000 d. P0
20. 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 P60,00.
21. A, B and C borrowed P6,000 from D and E, payable in 3 months with A giving in pledge her diamond ring
as security for the amount borrowed. How much can E collect from C?
a. P1,000 b. P2,000 c. P3,000 d. P6,000
22. A is obliged to give B her diamond ring. If she fails to do so, she must give P10,000. This is
a. Alternative obligation c. Facultative obligation
b. Conjoint obligation d. Obligation with a penal clause
23. 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 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 or fraud or dolo in the fulfillment of the obligation.
d. When there is breach of the obligations.
24. A obliged 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.
25. The creditor is entitled to recover damages and interest in addition to the penalty stipulated I. When the
debtor refuses to pay the penalty.
II. When the debtor is guilty of fraud in the fulfillment of the obligation.
a.True, true b. True, false c. False, true d. False, false
 ACTIVITY 5 MIDTERM

A owes B P10,000. When the debt matured B told A that she need not pay the debt since B is condoning it.
A rejected the offer of B, and B did not collect within the statute of limitation (period to collect) the debt
may be said to have been extinguished by
a. Remission b. Compensation c. Novation d. Prescription
2. A makes a check payable to bearer and gives the check to C, who gives it to D who finally gives it to A.
The obligation of A is extinguished by
a. Merger b. Compensation c. Novation d. Prescription
3. A obliged himself to give B a specific car on June 12, 2020 stipulating that A is liable even if the thing is lost
due to fortuitous event and without the need of a demand. On due date, the car got lost due to fortuitous
event. Which is correct?
a. Obligation is extinguished due to fortuitous event
b. B can compel A to deliver another car
c. B can require another person to deliver a car with expenses chargeable to A
d. Obligation is not extinguished but converted into monetary consideration
4. Within what period must recovery be made if the debtor did not know that payment was not yet due?
a. Before maturity with regard to both what was paid and the interest
b. Even after maturity with regard to both the interest and what was paid
c. Before maturity with regard to what was paid and even after maturity with regard to the interest
d. Before maturity with regard to interest and even after the maturity with regard to what was paid
5. Payment by cession as distinguished from dation in payment
a. The debtor is not necessarily in a state of financial difficulty
b. The effect is to release the debtor for the net proceeds of things ceded or assigned.
c. The property is alienated by the debtor to the creditor in the satisfaction of a debt in money
d. What is delivered by the debtor is merely a thing to be considered as the equivalent of the performance
of obligation
6. There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment
shall be made
a. At domicile of the debtor
b. At domicile of the creditor
c. Wherever the thing might be at the moment the obligation was constituted
d. Wherever the thing might be at the moment the obligation is to be fulfilled
7. Rudolf borrowed P1M from Rodrigo and Fernando who acted solidary creditors. When the loan matured,
Rodrigo wrote a letter to Rudolf demanding payment of the loan directly to him. Before Rudolf could comply,
Fernando went to see him to collect and paid him. Did Rudolf make a valid payment? a. No, since Rudolf
should have split the payment between Rodrigo and Fernando
b. No, since Rodrigo, the other solidary creditor, already made a prior demand for payment from Rudolf c.
Yes, since the payment covers the whole obligation
d. Yes, since Fernando was a solidary creditor, payment to him extinguished the obligation 8.
What is the first rule in application of payment?
a. Debtor has the right to apply
b. Creditor has the right to apply
c. Apply to the most onerous
d. Apply in accordance with the agreement
9. Anne owed Bessy P1M due on October 1, 2014 but failed to pay her on due date. Bessy sent a demand
letter to Anne giving her 5 days from receipt within which to pay. Two days after receipt of the letter, Anne
personally offered to pay Bessy in Mangager’s check but the latter refused to accept the same. The 5 days
lapsed. May Anne’s obligation be considered extinguished?
a. Yes, since Bessy’s refusal of the manager’s check, which is presumed funded amounts to a satisfaction
of the obligation
b. No, since tender of payment even in cash, if refused, will not discharge the obligation without proper
consignation in court
c. Yes, since Anne tendered payment of the full amount due
d. No, since a manager’s check is not considered legal tender in the Philippines
10. A, B and C are liable jointly and proportionately to D and E in the amount of P60,000. E assigned back the
obligation to A. How much obligation is extinguished by confusion or merger? a. P20,000
b. P30,000
c. P10,000
d. P60,000
11. The debtor and creditor in the obligation is just one person.
a. Confusion or Merger
b. Compensation
c. Novation

ObliCon by Atty. Bernard D. Bakilan, CPA, LLM Page 1 of 2

d. Remission
12. What law shall govern dation en pago as special mode of payment?
a. Law on novation
b. Law on obligation
c. Law on sales
d. Law on property
13. What is the prescriptive period of action based on quasi-contract? a. 10 years
b. 5 years
c. 6 years
d. 4 years
14. While on the way to deliver an 18K diamond ring to B and P100,000 in payment of his debt to B, A (debtor)
was robbed. What is the effect of this to his obligation? a. Extinguished as to P100,000 but not as to ring
b. Extinguished as to ring but not to as P100,000
c. Both obligations are not extinguished because generic thing never perishes
d. The obligations to the ring and P100,000 are both extinguished
15. A is domiciled in Lipa City. He has an obligation to deliver a Honda Civic car with plate number CPA-002 to
B, domiciled in Makati City. The Honda Civic is located in Pasay City at the time of perfection of contract.
Such car is found in Pasig City at the agreed date of deliver. Where shall the said car be delivered by A to B?
a. Lipa City
b. Makati City
c. Pasay City
Pasig City

ACTIVITY 6 MIDTERM
 A owes B P10,000. C, a friend of A, approaches B and tells him “I will pay you what A owes you. From now
on consider me your debtor, not A. A is to be excused. If B agrees, there is
a. Novation b. Subrogation c. Delegacion d. Expromission
2. The substitution or change of an obligation by another, which extinguishes or modifies the first, either
changing its object or principal condition or substituting another in the place of the debtor, or subrogating a
third person in the rights of the creditor
a. Compensation b. Merger c. Prescription d. Novation
3. A method of novation caused by the replacement of the old debtor by a new debtor, where the old debtor
has proposed to the creditor and which replacement has been agreed to by said creditor and by said new
debtor is
a. Novation b. Delegacion c. Expromission d. Quantum meruit
4. A owes B P10,000. A proposed to B that C will pay A’s debt and that A will be released from all liabilities. B
and C agreed to the proposal. Later, when B tries to collect from C, he finds out that C is insolvent. It was
proved that at the time of delegacion, C was already insolvent but this was not known to A, neither was the
insolvency of public knowledge. Is A still liable? a. Yes, because there is delegacion
b. No, because there is delegacion
c.
Yes, No, because the insolvency was neither of public knowledge nor known to A at the time he
delegated
his
debt
because the initiative came from A d.

5. A and B entered into a contract whereby A was to give B P200,000. Later they novated the contract by
stipulating that instead of cash A would give a particular car. Subsequently the car was destroyed by a
fortuitous event. Which is correct?
a. Novation is not allowed because the things due are not of the same kind
b. A is liable to pay P200,000, the amount of the old obligation
c. The original obligation is extinguished but not the obligation to deliver the car
d. The original obligation and the obligation to deliver the car are both extinguished
6. A, B and C executed a promissory note worded as follows: We promise to pay to X, Y and Z the sum of
P90,000. Sgd. A, B and C. Which is correct?
a. A is obliged to pay to X, Y and Z P90,000
b. A is obliged to pay to X P60,000
c. A is obliged to pay to Y P30,000
d. A is obliged to pay to Z P10,000
7. Upon the proposal of a third person, a new debtor substituted the original debtor without the latter’s
consent. The creditor accepted the substitution. Later, however, the new debtor became insolvent and
defaulted in his obligation. What is the effect of the new debtor’s default upon the original debtor?
a. The original debtor is freed of liability since novation took place and this relieved him of his obligation
b. The original debtor shall pay or perform the obligation with recourse to the new debtor
c. The original debtor remains liable since he gave no consent to the substitution
d. The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part
8. A borrowed Php 1M from a bank secured by a mortgage on his land. Without his consent, his friend B paid
the whole loan. Since a benefited from the payment, can B compel the bank to subrogate him in its right as
mortgage of A’s land?
a. No, but the bank can foreclose and pay B back
b. No, since B paid for A’s loan without his approval
c. Yes, since a change of creditor took place by novation by the bank’s consent
d. Yes, since it is but right that B be able to get back his money and, if not, to foreclose the, mortgage in
the manner of the bank
9. In which of the following debts is legal compensation proper? When one of the debts
a. Arises from the obligation of a depository
b. Arises from a voidable contract
c. Arises from a claim for support by gratuitous title
d. Consists in civil liability arising from penal offense
10. Legal compensation is allowed when one of the debts
a. Arises from the sale of real property made by a minor to a capacitated person
b. Arises from the obligation of a depositary
 c. Consists in civil liability arising from a penal offense
d. Arises from a claim for support by gratuitous title
11. The debtor and creditor are indebted to each other
a. Confusion or Merger
b. Compensation or offset
c. Novation
d. Remission

ObliCon by Atty. Bernard D. Bakilan, CPA, LLM Page 1 of 2

12. The old obligation is replaced by a new obligation
a. Confusion
b. Compensation or offset
c. Novation
d. Remission
13. What is the following obligations maybe subject to LEGAL COMPENSATION?
a. Obligation of depositary in a contract of deposit
b. Obligation of bailee in a contract of commodatum
c. Obligation arising from crime or delict
d. Obligations arising from contract of loan or mutuum
14. A owes B P 20, 000 which became due on December 20, 2011. On the date, A offered P 10, 000, the only
money he then had, but F refused to accept the payment. Thereafter A met, C, B’s 23 year old daughter, to
whom she gave the P10, 000 with the request that she turn the money over to her mother. The money was
stolen while in C’s possession. How much may B still recover from A? a. P 20, 000
b. P 10, 000
c. P 15, 000
d. P 0
15. What is the prescriptive period of the right to file an action based on quasi-delict, quasi-contract, oral
contract and written contract?
a. 4 years, 6 years, 6 years, 10 years
b. 4 years, 5 years, 6 years, 8 years
c. 1 year, 4 years, 6 years, 10 years
d. 4 years, 4 years, 6 years, 10 years
ObliCon by Atty. Bernard D. Bakilan, CPA, LLM Page 2 of 2