CABRIA CPA REVIEW

OBLIGATIONS

I.Identification (Basic Concept/Principles)

_____________ 1. Natural or juridical susceptible of being the subject of legal

relations.
_____________ 2. The fitness to be the subject of legal relations.
_____________ 3. The power to do acts with legal effects.
_____________ 4. Rule of conduct promulgated by legislative power and obligatory
to all.
_____________ 5. Incorporated to the principal naturally or artificially.
_____________ 6. Added to the principal for its completeness.
_____________ 7. Non-compliance of obligation when it falls due.
_____________ 8. The thing perishes with the owner rule.
_____________ 9. Negligence where there is no existing contract between the
parties.
_____________ 10. Deliberate act of evading the normal compliance of an
obligation.
_____________ 11. One in which a debtor may validly pay a monetary obligations.
_____________ 12. Means no partial payment or performance is allowed.
_____________ 13. Debtor abandons all his property to his creditor for them to
sell.
_____________ 14. The deposit of a thing in legal form when the creditor refuses
to accept or cannot receive it.
_____________ 15. The legal basis of quasi-contracts.
_____________ 16. One person becomes the debtor and creditor of himself.
_____________ 17. Two persons became debtor and creditor of each other.
_____________ 18. Gratuitous abandonment by the creditor of his rights.
_____________ 19. Change in the subject of an obligation.
_____________ 20. Extinguishment of obligation by passage of time.

KINDS OF OBLIGATIONS:

_____________ 21. a. Not legally enforceable. / In accordance with natural law.

_____________ b. legally enforceable. / In accordance with positive law.
_____________ c. In accordance with both natural and positive law.
_____________ 22. a. Obligation governed by the Civil code.
_____________ b. obligation governed by the Code of Commerce and other special
laws.
_____________ 23. a. An obligation without a condition or terms.
_____________ b. An obligation whose efficacy depends of the fulfillment, or non-
fulfillment of a future and uncertain event.
_____________ c. An obligation subject to a term.
_____________ 24. a. In either case, the obligation is demandable at once.
_____________ 25. a. Obligation wherein only one party is liable.
_____________ b. Obligation wherein obligation is pro-rated among the parties.
_____________ c. Obligation wherein each party is entitled to or liable for the

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entire obligation.
_____________ 26. a. Where only one prestation is involved.
_____________ b. Where all prestation are due and demandable.
_____________ c. Where only one of the several prestation due had to be
performed.
_____________ d. Where one prestation is due but may be substituted by the
debtor with another.
_____________ 27. a. An obligation to give.
_____________ b. An obligation to do or not to do.
_____________ 28. a. An obligation capable of partial performance.
_____________ b. An obligation incapable of partial performance.
_____________ 29. a. An obligation based on law.
_____________ b. An obligation based on the agreement of the parties.
_____________ 30. a. Can stand alone.
_____________ b. Depends on another obligations.

II. TRUE OR FALSE

31. Contract is the effect, while the obligation is the cause.

32. D obliged himself to give C P1,000,000 if the latter would not kill X, a
third person. In this case, both the condition as well as the obligation are
void.
33. In alternative obligation all things are due just like facultative obligation.
34. In a solidary obligation the remission of the whole debt is a donation to all
the debtors.
35. In facultative obligation the right to choose can be given to the creditor.
36. A person civily liable is also criminally liable.
37. Every person obliged to give something is also obliged to take care of it
with due diligence of a good father of a family always.
38. The creditor has the right to the fruits of the thing from the time the
obligation is constituted.
39. An obligation subject to resolutory condition is demandable regardless of
the effects of the happening of the event.
40. Payment made by the debtor to a third person who is not the creditor will
not extinguish the obligation.
41. Any waiver of an action for future fraud if done voluntarily by the parties
is valid.
42. An obligation payable “as soon as possible” is an obligation with a period
for the benefit the creditor only.
43. D obliged himself “to pay C the sum of P50,000 which he owes him when
he (D) feels like it “.This kind of obligation is valid and legally enforceable.
44. Solidarity may be presumed just like in joint obligations.
45. Condonation is generally gratuitous.
46. Whoever pays on behalf of the of the debtor with or without his
knowledge can compel the creditor to subrogate him.
47. Dation in payment is an exception to the rule on indivisibility of payment.
48. In delegacion, the new debtor’s insolvency may revive the original
debtor’s obligation.

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49. Negotiorum gestio is a contract based on the principle of unjust
enrichment.
50. When a debtor voluntarily pays an obligation that has prescribed already,
he may still recover under the rule governing natural obligations.
51. a source of obligation where negligence resulted to crime:
a. culpa contractual
b. quasi-contract
c.culpa delictual
d. culpa aquiliana
52. Which is not a source of obligation?
a. Law
b. Culpa Aquilana
c. Culpa Contractual
d. Quasi contract
53. Statement No.1 D oblige himself to give C a specific car tomorrow. If D
failed to deliver tomorrow after demand is made C may compel D to do his
obligation and may ask for damages.
Statement No.2 D oblige himself to deliver a car to C tomorrow. If D failed to
deliver tomorrow after demand is made C’s right is to ask a third person to
deliver a car to him at the expense of D plus damage.
a. Both are true
b. Bothe are false
c. No. 1 true; No.2 false
d. No.1 false; No.2 true

54. Which of the following is considered as quasi-contract?

a. Solutio indebiti
b. When the third person, without the knowledge of the debtor, pays the
debt
c. Reimbursement due the person who saved property during fire or storm
without the knowledge of the owner.
d. All of the above.

55. A judicial relation known as Negotiorum Gestio takes place.

a. When a person voluntarily takes charge of another’s abandoned business

or property without the owner’s consent.
b. When something is received and there is no right to demand it and it
was delivered through mistake,
c. When a person is appointed by a court to take the property or business
of another.
d. None of the above.

56. The wrongful act or tort which causes loss or harm to another is called:

a. Damages
b. Damage
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c. Injury
d. Liability

57. which of the following is not a generic obligation?

a. Obligation to pay P5,000

b. Obligation to deliver Toyota INNOVA 2005
c. Obligation to deliver 50 cavans of rice
d. Obligation to give a delimited generic object

58. Statement No.1: An obligation which has for its object the delivery of a
“delimited generic” object may be lost by reason of fortuitous event.
Statement No. 2: There can be no delay in an obligation not to do.

a. Both statement are true

b. Both statement are false
c. Statement No.1 is true while statement No.2 is false
d. Statement No.1 is false while statement No.2 is true

59. if the obligation is payable in foreign currency

a. The obligation is void.

b. The obligation is valid, but the stipulation is void.
c. The creditor can compel the debtor to pay in foreign currency as per
agreement.
d. The stipulation and the obligation are void.

60. “I’ll give you my car one year after your death.” The obligation is

a. Valid, because the event is sure to come.

b. Valid, the obligation is conditional.
c. Valid, but disregard the condition.
d. Void, not legally possible.

61. Statement No.1: The concurrence of more than one creditor or more than
one debtor in one and the same obligation implies solidarity.
Statement No.2: In alternative obligations where the right of choice is
exercised by the creditor, consent of the debtor as to the creditor’s choice of
which prestation to perform is necessary.

a. Both statement are true

b. Both statement are false
c. Statement No. 1 is true while statement No.2 is false
d. Statement No.1 is false while statement No.2 is true

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62. Statement No.1: “I will give you a Nokia 6610 Phone if you will not marry
X this year (2012). If by the end of 2012, both parties are alive and no
marriage has taken place, my obligation is extinguished.
Statement No.2: “I will give you P10,000 if I decide to go to Cebu City
tomorrow. This obligation is valid.

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

63. Statement No.1: If the obligation does not fix a period, but from its
nature and circumstances, it can be inferred that a period was intended, the
court may fix the duration thereof. Once it is fixed by the court the parties
cannot change the fixed date for performance.
Statement No.2: “I will give you P10,000 if X dies next year.” This is an
obligation with a period.

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

64. Which obligation is not valid?

a. “I promise to give you P100,000 on December 25,2012”

b. “I promise to give you P100,000 if my mood dictates”.
c. “I promise to give you P100,000 if your patient dies”.
d. “I promise to give you P100,000 if you pass the May 2013 CPA Board
Examination.

65. Which of the following is an obligation with a period for the benefit of both
the debtor and the creditor?

a. Payable if I like
b. Payable when you like
c. Payable on or before December 25, 2012
d. Payable on December 24, 2012
66. Which of the following obligations is not subject to a period?
a. Payable soonest
b. Payable “little by little”
c. Payable whenever “I like it”
d. Payable “when means permits me to”

67. A and B signed a promissory note to borrow P6,000 from X, Y and Z,

payable in 6 months time. B gave in pledge a P10,000 diamond ring as
security for the borrowed. How much can Y collect from B?

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a. P1,000
b. P6,000
c. P2,000
d. P3,000

68. If in the situation given above, the diamond ring is returned by

agreement to B, which of the following statement is correct?

a. Principal obligation is extinguished

b. Only P2,000 of the obligation is extinguished
c. Only P3,000 of the obligation is extinguished
d. Accessory obligation is extinguished

69. A, B and C executed a promissory note worded as follows:

We promise to pay X, Y and Z the sum of P90,000 (Sgd,) A, B and C

a. A is obliged to pay X, Y and Z P90,000

b. A is obliged to pay X P30,000
c. A is obliged to pay X P60,000
d. A is obliged to pay X P10,000

70. Statement No.1: When the fulfillment of the suspensive or resolutory

Condition depends upon the sole will of the debtor, the conditional obligation
shall be void.
Statement No.2: If the original obligation is subject to a suspensive or
resolutory condition and the contract is novated the new obligation shall be
under the same conditions unless otherwise stipulated.

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

71. In contracts and quasi-contracts, the liability of the debtor who acted in
good faith:

a. Extends to all natural and probable consequences of the breach of the

obligation, and which the parties have foreseen or could have reasonable
foreseen at the time the obligation was constituted.
b. Extends only to results intended but excluding exemplary damages.
c. Extends to all damages which may be reasonably attributable to the
nonperformance of the obligation.
d. Extends to all damages which may be renounced in advanced

72. Statement No.1: In solution indebiti, damages in case of non-compliance

is the basis of liability.

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Statement No.2: Negligence, as a ground for damages, refers to the non-
performance of an obligation with respect to time.
a. Both statements are true
b. Both statements are false
c. Statements No.1 is true; Statements No.2 is false
d. Statements No.1 is false; Statements No.2 is true

73. Debtor oblige himself to deliver to creditor 100 cavans of rice on June
1,2012. On said date, D failed to make delivery despite repeated demands
by C. In this case:

a. C has no remedy under the law

b. C can compel D to deliver 100 cavans of rice on plus damages
c. C may ask a third person to deliver 100 cavans of rice to him, the value
recoverable from d plus damages.
d. Convert obligation to cash.
74. D obliged himself to paint the house of C or to paint the picture of C in his house
(SALA) in an standing position, using 10 by 10 canvass. Later, because of financial
reverses, C sold his house to X. Which of the following statements is correct.
a. The obligation of D is extinguished because he cannot make a choice
b. D may just paint the picture of C
c. D may cancel the contract and ask for damages
d. Contract is voidable
75. The officious manager or gestor is liable for any fortuitous event in all of the following,
EXCEPT:
a. If he has undertaken risky operations which the owner was accustomed to embark
upon.
b. If he has preferred his own interest to that of the owner.
c. If he fails to return the property or business after demand by the owner.
d. If he assumed the management is bad faith.
76. Statement No.1: D obliges himself to give C a specific ring, upon failure, to give C
P5,000. This is a case of facultative obligation.
Statement No.2: D obliges himself to give C a specific ring. However, if he so desires, D
may instead give C P5,000. This is an example of an obligation with a penal clause.
Given these examples, which statement is correct?
a. Both obligations are valid but both are mislabeled as to their classification as
obligations.
b. Both obligations are not valid.
c. Both obligations are valid and are properly labeled as to their classification as
obligations.
d. Both statements are invalid and improperly labeled as to their classification as
obligations.
77. A is obliged to give B his only car on September 2012. On the said date, A did not
deliver. On September 2, 2012, an earthquake completely destroyed the car. Is A still
liable?
a. No. Considering That no demands to deliver was made by B and the specific thing
was lost, due to fortuitous event, the obligation is extinguished.

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b. No. The obligation is extinguished, even if the debtor is already in default because
the debtor can plead impossibility of performance.
c. Yes. A is already in legal delay, thus the obligation to deliver the lost specific thing
is converted into monetary claim for damages.
d. Yes. The creditor can instead demand for a substitute of equivalent value from the
debtor.
78. The distinction between period and condition is
a. Period may or may not happen
b. Condition will always happen
c. Period may refer to a past event unknown to the parties
d. Period is certain to happen unlike condition
79. The debtor shall lose every right to make use of the period except:
a. When he does not furnish a guaranty or security to the creditor
b. When after the obligation has been constituted he becomes insolvent, unless he
gives a guaranty or security for the debts
c. When the debtor attempts to abscond
d. When the debtor violates any undertaking in considerations of which the creditor
agreed to the period.
80. A owes B P100,000 due on December 12, 2012. A mortgaged his house to B as
guaranty for the debt. Shortly, however, the mortgaged house was completely destroyed
by typhoon “Nitang”. Thereafter, B demanded payment from A on October 28,2012. Is B’s
demand valid?\
a. No. The obligation is one with a definite period, thus the creditor cannot demand
fulfillment of the obligation as such would be prejudicial to the rights of the debtor.
b. No. The obligation is extinguished because the object of the obligation is lost
through a fortuitous event.
c. Yes. The debt becomes due at once because the guaranty was lost even through a
fortuitous event, unless the debtor can mortgage another property that is equally
satisfactory.
d. Yes. The debt becomes due at once because from the tenor of the obligation, the
period established is for the benefit of the creditor solely thereby giving the creditor
the right to demand performance even before the date stipulated.
81. The creditor entitled to recover damages and interest in addition to the penalty
stipulated:
a. When the parties so agreed
b. When the debtor refuses to pay the penalty
c. When the debtor is guilty of fraud in the fulfillment of the obligation
d. All of the above
82. “Vin Diesel will continue giving Tommy Lee the latter’s meal allowance until he finds a
job”, is an obligation subject to:
a. A resolutory period
b. A suspensive condition
c. A resolutory condition
d. A suspensive period
83. D obliged to give C, either object No.1 valued P15,000; or object No.2 valued
P10,000; or object no.3 valued P5,000. All the object were lost due to D’s fault in the
following order started.
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a. D’s obligation is extinguished
b. D’s obligation is to pay the value of object no.1 plus damages
c. C’s right is to demand the value of any of the object plus damages
d. Pay P5,000 plus damages
84. In question no.83 if the object No.1 is lost due to fortuitous event; no.2 is lost due to
debtor’s fault; No.3 is subsisting;
a. The right of C is to demand the value of object No.2 plus damages
b. C has no right because he did not communicate what object the debtorwill deliver
c. The obligation of D is to deliver object No.3
d. D’s obligation is totally extinguished.
85. A1, A2 and A3 oblige themselves solidarily to give C a specific car valued P12,000.
On the due date, C demanded delivery but the debtors failed to deliver. The next day,
while A1 still in possession of the car, it got lost due to fortuitous event. The right of C is
a. None, obligation is totally extinguished
b. Proceed against any of the debtors for the value and damages
c. Proceed against A1 only, because he is one is possession at the time it was lost
d. Proceed against A2 or A3 but only P4,000 each.
86. I will give you a specific car if you will not marry X this year, C.Y. Which of the
following statement is incorrect?
a. If on December 25, X died and no marriage took place, my obligation become
effective (not extinguished) because the expected event cannot occur anymore
b. If on December 25 you marry X, my obligation is extinguished because you violated
the condition.
c. If the year has ended, and no marriage took place, both parties are still alive, my
obligation becomes effective (not extinguished) because the time indicated has
already elapsed
d. If on December 25, X entered the convent, the obligation can be demanded
immediately because it is clear that the marriage will not take place anymore.
87. D obliged himself to give C a specific car if the latter cannot make a circle that is at
the same time a square.
a. The obligation is impossible, therefore void.
b. The obligation is void because the condition is outside the commerce the man.
c. D cannot be obliged to deliver at all
d. Valid and enforceable
88. Statement No.1 : In alternative obligations, all the objects promise by the debtor to
the creditor are all due.
Statement No.2: In facultative obligations, there are two objects due but the obligor can
deliver one thing due and the obligation is extinguish.
a. No.1 is true; No.2 is false
b. No.1 is false; No.2 is true
c. Both are true
d. Both are false
89. A-1 and A-2 are solidary debtors of B-1, B-2 and B-3, joint creditors in the amount of
P90,000.How much can B-3 collect from A-2?
a. B-3 could collect P30,000 from A-2.
b. B-3 could collect P90,000 from A-2 and give P30,000, each to B-1 and B-2
c. B-3 could collect P45,000 from A-2 and give P15,000 each to B-1 and B-2
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d. B-3 could collect P15,000 from A-2 and P15,000 from A-1
90. Statement No.1: A solidary creditor can assign his rights even without the consent of
the other creditors.
Statement No.2: In an obligation that is impossible of division, the debt can be enforced
only by proceeding against all the debtors. If one of the debtors should be insolvent, the
other shall not liable for his share.
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
91. Statement No.1: Legal, compensation takes place by operation of law even if the
parties may not aware of it.
Statement No.2: The indivisibility of an obligation necessarily implies solidarity.
a. Both statements are true
b. Both statements are false
c. Statements No.1 is true; Statements No.2 is false
d. Statements No.1 is false; Statements No.2 is true
92. Example No.1: D owes C P10,000 due on December 25, C owes D P6,000 due on
December 25. D’s obligation is guaranteed by G. On the due date D is insolvent. G is
liable to C for P10,000, he (G) cannot set up compensation because he is not a principle
debtor.
Example No.2: D owes C P10,000 payable on December 25. Later D through
intimidation, was able to make C sign a promisorry note stating that C is indebted to D for
the same amount. In here, D cannot be required to pay C P10,000 because he (D) can
set up compensation against C.
a. Both example are true
b. Both example are false
c. Only No.1 is true; No.2 is false
d. Only No.1 is false; No.2 is true
93. Obligation may be modified by:
a. Changing their object or principal conditions
b. Substituting the person of the debtor
c. Subrogating a third person in the rights of the creditor
d. All of the above
94. Which of the following is not a special mode of payment?
a. Dacion en pago
b. Payment of Cession
c. Tender of payment
d. Consignation alone without the need of tender of payment in cases provided for by
law
95. A and B are solidary debtors of X and Y, solidary creditors to the amount of P4,000.
On the due date with the consent of Y, X renounced in favor of A the entire obligation.
Which of the following is correct?
a. B shall give A P2,000
b. Y can still collect from A or B P2,000
c. Y can collect from X P2,000
d. X has no obligation to reimburse Y any amount
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96. The act of abandoning all his properties in favor of his creditors so that the latter may
cuase their sale and apply the proceeds thereof to their claims proportionately is called:
a. Dacion en pago
b. Set off
c. Payment of Cession
d. Tender of payment with consignation
97.A and B are the debtors and X. and Y are the creditors in a solidary obligation to the
tune of P80,000. On due date, X renounced in favor of A the entire obligation which was
validly accepted by A. Which of the following is true?
a. B shall give P40,000 to A
b. Y can collect from X P40,000
c. Y can still collect from A or B
d. A can collect P40,000 from B
98. The following, except one, are requisites of payment as a mode of extinguishing an
ordinary obligation. Which is the exception?
a. Complete or full payment
b. Payment in due course when the obligation is due and demandable
c. Payment using negotiable instrument
d. Payment using legal tender, except if payable in foreign currency
99. Proof of pecunciary loss is necessary for the award of:
a. Liquidated damages
b. Exemplary damages
c. Actual damages
d. Temperate damages
100. All are secondary modes of extinguishing on obligation except one:
a. Compromise
b. Illegality
c. Impossibility
d. Performance
101. Statement No.1 : Dacion en Pago, totally extinguishes the whole obligation.
Statement No.2: In obligation with penal clauses, it is necessary for the creditor to show
proof of actual damages suffered by him on account of the non-performance of the
obligation by the debtor.
a. Both statements are true
b. Both statements are false
c. Statements No.1 is true; Statements No.2 is false
d. Statements No.1 is false; Statements No.2 is true
102. In three of the following cases, facultative compensation shall not prosper
Which is the exception?
a. Gratuitous support
b. Civil liability arising from crime
c. Mutuum
d. Depositum
103. Statement No.1: The creditor may be compelled to accept payment in checks as long as
the check is negotiable.
Statement No.2: As a rule in payments involving foreign currency, the basis of payment is the
exchange rate at the time of constitution of obligation.

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a. Both statements are true
b. Both statements are false
c. Statements No.1 is true; Statements No.2 is false
d. Statements No.1 is false; Statements No.2 is true
104. Novation changing the creditor without debtor’s approval:
a. Legal Subrogation
b. Expromision
c. Delegacion
d. Conventional novation

105. In tender and consignation: If after consignation is made, the creditor allowed the debtor to
withdraw the thing deposited in court, which of the following statements is incorrect.
a. Co-debtors, guarantors, and sureties are released from the obligation unless they
consented
b. The obligation remain to subsist
c. The obligation is extinguished
d. Obligation is not extinguished
106. Statement No.1: “I promise to pay within 2 years” is an obligation with a period, the creditor
having a right to demand payment within 2 years from the date of the instrument.
Statement No.2: Ten sacks of corn cannot be compensated (conventional compensation) by ten
sack of rice.
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
107. Example 1 – D promised to give C a specific car valued, P100,000 after C has killed X.
Later, after the killing the contract was novated instead of giving C a specific car he will just give
a specific land to be delivered on February 28, 2012. Meantime, both parties died. In here the
heirs of C may compel the execution of the second contract, that is the delivery of the specific
land.
Example 2 – S sold to B a specific residential house situated in Bulacan for P1M, unknown to
both parties one (1) hour before the sale the property was totally gutted by fire caused by
electrical defect. In here, B can be required to pay the price of the sale, because the subject is
determine S’s obligation to deliver is extinguished, while B’s obligation remain to subsist.
a. Bothe example are true
b. Only No.2 is true, while No.1 is false
c. Only No.2 is false, while No.1 is true
d. Both example are false
108. Mr. Debtor owes Mr. Creditor who has two (2) legitimate children, P50,000 payable on
December 31,2012. Which of the following is correct?
a. If Mr. Debtor dies before December 31, 2012 , Mr. Creditor cannot collect from the heirs of
Mr. Debtor.
b. If Mr. Debtor dies before December 31, 2012 , Mr. Creditor can collect from the heirs of
Mr. Debtor.
c. If Mr. Creditor dies, his two (2) legitimate emancipated children cannot recover from Mr.
Debtor his obligation.
d. If both Mr. Debtor and Mr. Creditor die, the heirs of Mr. Creditor can collect from the heirs
of Mr.Debtor.
109. On October 4, 2012, A is indebted to B for P50,000 for a 20-day period. A proposed to B
the X will pay A’s debt, and that A will be free from all liabilities. B and X agreed to the proposal.

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On October 25,2012 , When B tried to collect from X, he finds that X is insolvent. At the time of
delegacion, X was already insolvent but this was not known to A. The insolvency is not of public
knowledge. So B sues A on the ground that it was A who made the proposal and that A really
guaranteed X’s solvency. Decide.
a. A is liable because he is presumed to have guaranteed X’s solvency.
b. A is not liable, because A does not know the insolvency of X at the time of delegation and
neither was the insolvency of public knowledge.
c. A is liable because he did not exercise due diligence in determining the insolvency of X.
d. A is liable because X agreed to the proposal to make himself solidary liable for the
obligation.
110. D1 and D2 are joint debtors of C1, C2,C3 and C4, solidary creditors to the amount of
P1,000,000. How much can C3 collect from D1?
a. P500,000
b. P1,000,000
c. P250,000
d. P125,000
111. D owes C P10,000 payable on December 25, while C owes D P10,000 payable on
December 30. In here, C can set up compensation (or cumpondere) on December 25, and this
is called:
a. Legal
b. Partial
c. Judicial or “set-off”
d. Facultative
112. The following, except one, are primary modes of extinguishing obligations. Which is the
exception?
a. Confusion
b. Compensation
c. Condonation
d. Compromise
113. 1st Statement: The parties may not agree upon the compensation of debts which are not
yet due.
2nd Statement: Anything paid may be recovered with fruits and interests, the obligor NOT being
aware of the period.
a. True, True
b. False, False
c. True, False
d. False, True
114. X, Y and Z solidarily bound themselves to pay to solidary creditors A, B and C the amount
of P75,000.00. The loan was secured by a mortgage on B’s land. Out of gratuity, A, in a public
instrument, remitted the obligation in favor of X. In this case, which statement is correct>
a. The principal obligation is extinguished
b. The real estate mortgage is extinguished
c. Both the principal obligation and the mortgage are extinguished by remission
d. Both the principal and the accessory obligation subsist.
115. Statement No.1: Just before the obligation became due and demandable, the debtor
proposed to the creditor that he would give him a specific car instead of paying P150,000.00,
and which proposal was accepted by the creditor. Here, there is extinguishment of an obligation
by way of dacion en pago.
Statement No.2: After substitution in facultative obligations, the loss of the principal through the
fault or negligence of the debtor shall render him liable for damages in favor of the creditor.
a. Both are true
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b. Both are false
c. No.1 is true, No.2 is false
d. No.1 is false. No.2 is true
116. 1st statement: Partial loss of the thing in an obligation or extreme difficulty to perform is a
ground to modify an obligation.
2nd statement: Condonation may give rise to donor’s tax liability even without debtor’s
ACCEPTANCE.
a. True, True
b. False, False
c. True, False
d. False, True
117. Statement No.1: “I will give you P10,000 if you pass the May 2013 CPA examination”. On
the first day of the examination, I poisoned you and you failed to take the examination. The next
day my obligation is extinguished because you cannot pass the examinations anymore.
Statement No.2: “Novation may be presumed.
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

118. Legal subrogation is presumed in the following cases except:

a. When the creditor pays another creditor who is preferred
b. When a stranger pays the obligation with debtor’s consent
c. When a guarantor pays the obligation
d. When the mortgagor pays the mortgagee
119. Amazed by the skill of X who can paint portraits using paint brushes inserted in his
right armpit, Y entered unto a contract with the former to have his own portrait done and
gave X P50,000 as full payment therefore. After he has started painting the portrait but
before its completion, X was sideswiped by a speeding car while walking beside the
railway causing the doctors to have his right arm amputated, In this case what is the
remedy of Y?
a. Nothing, as the service became impossible by reason of an act independent of the
will of the debtor
b. Equivalent performance in terms of damages
c. Specific performance by compelling X to go on painting Y’s portrait.
d. Substitute performance by allowing a third person to do his portrait with expenses
therefore charged to X.
120. In novation which of the following is incorrect?
a. If the new obligation is void, original obligation shall subsist
b. In expromission, the insolvency of the new debtor shall not revive, the action of the
creditor-against the original debtor
c. If the original obligation is subject to a suspensive condition, the new obligation is
not subject to the same condition unless stated
d. While if the condition is resolutory, the new is also subject to a resolutory condition,
unless otherwise stated.

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