UNIVERSITY OF MINDANAO

Tagum College

LAW ON OBLIGATIONS AND CONTRACTS

Second Exam

Aug. 3, 2019

GENERAL INSTRUCTIONS: Read the questions carefully and choose the

best answer. No erasures allowed. Do not write anything in the
questionnaire.

I. MULTIPLE CHOICE. Read and analyze the questions carefully. Shade the
best answer in your examination booklet.

1. Whenever in an obligation a period is designated, it is presumed to have

been established for the benefit of:

a) Both the creditor and the debtor

b) The creditor

c) The debtor

d) The third party

2. The obligation attached to the principal in order to complete the same or

take its place in the case of breach.

a) Principal Obligation

b) Accessory Obligation

c) Obligations with a penal clause

d) Indivisible Obligation

3. Payment made to a third person shall also be valid insofar as it has

redounded to the benefit of the creditor. Such benefit to the creditor need
not be proved in the following cases, except:

a) Subrogation

b) Ratification

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 c) Waiver

d) Estoppel

4. It is when a property is alienated to the creditor which constitute as an

accepted equivalent in satisfaction of a debt in money.

a) Dation in payment

b) Cession in payment

c) Barter

d) Option Contract

5. Means not only the delivery of money but also the performance, in any
other manner, of an obligation.

a) Payment

b) Condonation

c) Merger of rights

d) Compensation

6. Consignation alone shall produce the same effect in the following cases,
except:

a) When the creditor is absent or unknown, or does not appear at the

place of payment

b) When he is capacitated to receive the payment at the time it is due.

c) When, without just cause, he refuses to give a receipt

d) When two or more persons claim the same right to collect.

7. Which of the following statements is false?

a) Payment by cession is a substitute form of payment

b) In payment by cession, the debtor is insolvent or experiencing

financial difficulties.

c) Payment by cession involves only one property of the debtor

d) Payment by cession involves two or more creditors

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8. The designation of the debt to which the payment must be applied when
the debtor has several obligations of the same kind in favor of the same
creditor.

a) Application of payments

b) Dacion en pago

c) Cession in payment

d) Tender of payment and consignation

9. A debt shall not be understood to have been paid unless the thing or
service in which the obligation consists has been completely delivered or
rendered, as the case may be.

a) Principle of integrity

b) Principle of honesty

c) Principle of loyalty

d) Principle of delivery

10. Payment shall be made to the following persons, except:

a) Creditor

b) Creditor’s successor in interest

c) Any person authorized to receive it

d) Any person

11. An obligation where one debtor can be made to pay for the entire
obligation subject to reimbursement.

a) Joint Obligation

b) Facultative Obligation

c) Solidary Obligation

d) Obligation with a period

12. An obligation whose performance of the prestation can be fulfilled in

parts.

a) Divisible Obligation

b) Obligation with a penal clause

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 c) Alternative Obligation

d) Indivisible Obligation

13. This promissory note: “We promise to pay A, B and C the sum of
₱18,000.00” signed X, Y and Z.

a) Z is obliged to pay C ₱6,000.00

b) Z is obliged to pay C ₱2,000.00

c) Z is obliged to pay C ₱12,000.00

d) Z is obliged to pay A, B and C, ₱18,000.00

14. D owes C ₱1M. G is the guarantor. X, a third person, paid the debt of D
without the knowledge of the latter. In this case,

a) If D fails to pay X, the latter can comple G to pay him.

b) If G pays X, the former can demand reimbursement from D.

c) X cannot compel G to pay him.

d) D has no obligation to reimburse X because he paid without the

consent of D.

15. There being no express stipulation and if the undertaking is to deliver a

determinate thing, the payment shall be made:

a) In the place designated in the obligation

b) Wherever the thing might be at the moment the obligation was

constituted.

c) In the domicile of the debtor

d) None of the above.

16. A thing is lost when it, except:

a) Perishes

b) Goes out of commerce

c) Disappears in such a way that its existence is unknown or it cannot

be recovered

d) Deteriorates

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17. D obliged to give C a specific watch, a specific ring, or a specific bracelet.
The parties agreed that C will have the right to choose the thing which will
be given to him. Before C could make his choice, the watch and ring are lost
through D’s fault, successively. What is the right of C?

a) C may choose the delivery to him of the bracelet, or the price of the
watch or the price of the ring plus damages.

b) C cannot choose the price of the watch or the price of the ring
because the said objects have already been lost.

c) C can only choose to have the bracelet because anyway, D can still
perform the obligation.

d) C can only choose to have delivery of the bracelet or the price of the
ring which was the last item that was lost plus damages.

18. It has the effect of “unmaking a contract, or its undoing from the
beginning, and not merely its termination.”

a) Rescission

b) Specific Performance

c) Annulment

d) Void

19. D is obliged to give C a specific ring. The parties agreed that D may
give a specific bracelet as a substitute. Which of the following is true?

a) If the ring is lost through a fortuitous event before substitution, the

obligation is extinguished.

b) If the bracelet is lost through fortuitous event before substitution,

the obligation is extinguished.

c) If the ring is lost through fortuitous event after substitution, the

obligation is extinguished.

d) If the ring is lost through the debtor’s fault after substitution, the
debtor shall pay damages.

20. A, B, C and D are joint creditors of X and Y, solidary debtors in the

amount of ₱40,000.00. How much can A, B and C collect from X?

a) A, B and C could collect ₱20,000.00 from X

b) A, B and C could collect ₱30,000.00 from X

c) A, B and C could collect all the ₱40,000.00 from X

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 d) A, B and C could collect ₱20,000.00 from X and ₱10,000.00 from Y.

II. ESSAY. Read the questions carefully and answer with a “Yes” or a “No” as
your categorical answers. Cite the applicable provision/s of the law and
explain your answer.

21. Jon Snow owes Daenerys ₱50,000.00. Daenerys kept the cellphone of
Jon Snow having a value of ₱50,000.00 by way of deposit. Is compensation
proper in this case?

22. Cersei owes Jaime ₱40,000.00 due on October 1, 2018 while another
contract Jaime owes Cersei the amount of ₱5,000.00 due also on October 1,
2018. On November 15, 2018, Jaime assigned his credit (₱40,000.00) to
Sansa without the knowledge of Cersei. Another obligation of Jaime in the
amount of ₱10,000.00 in favor of Cersei matured on November 30, 2018.
Still another obligation of Jaime in favor of Cersei in the amount of
₱15,000.00 will mature on December 25, 2018.

Cersei acquired knowledge of the assignment only on December 5,

2018. Can Cersei set up the defense of compensation? If yes, how much can
Sansa collect from her?

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