Law on Obligations and Contracts QUESTIONS ONLY| 2022 UPDATE

Special Qualifying Exam (SQE) Reviewer Examination: Law Subject Covered: LAW 20013: Law on Obligations and Contracts 1. Voidable contracts are contracts which are valid unless: a) Annulled b) Entered into when one of the parties is a minor c) Physical coercion vitiates consent d) Rescinded 2. An absolutely simulated contract is: a) Valid and Enforceable b) Rescissible c) Unenforceable d) Void 3. A is a deaf-mute. Can he validly give consent, so he can enter into a valid contract? a) No, because he is incapable of giving consent b) Yes, if he knows how to write. c) No, because is vulnerable to be defrauded d) Yes, because he can act for himself. 4. The following contracts are presented to you: I. A contract where one of the parties gave his consent during a hypnotic spell II. A contract where one of the parties gave his consent because the other party threatened to sue him because of his debt III. An oral contract of sale of a piece of land IV. A secret sale of an unlicensed revolver In your evaluation of the foregoing contracts, which of the said contracts is valid? a) IV b) III c) II d) I 5. Statement 1: A void contract may be ratified. Statement 2: If the acceptance is qualified, it constitutes an option contract. a) Only Statement 1 is true. b) Only Statement 2 is true. c) Both statements are true. d) Neither of the statements are true. 6. B, an unemancipated minor, ordered food sold by C and paid it appropriately. State the status of the contract. a) Void b) Voidable c) Unenforceable d) Valid and Enforceable 7. Which of the following statements are false? Statement 1: The action for rescission must be commenced within three years. Statement 2: An offer made through an agent is accepted from the time it is communicated to the principal. Statement 3: The perfection of real contracts happens on the delivery of the thing subject matter of the contract. a) 1 and 2 b) 1 and 3 c) 2 and 3 d) All statements are false. 8. A written contract of sale of a lot between D, seller, and E, buyer, for P150,000.00. The lot is the only property of D who sold it to defraud F, his creditor. E was aware of the fraudulent intent of D in selling the lot to him. The contract is: a) Valid and Enforceable b) Voidable c) Rescissible d) Void 9. G is so desperate to acquire the ownership of a jewelry owned by H. H would not concede whenever G offers to purchase it. Out of desperation, she poked a gun to H and asked her to sign a pre-form contract of sale pertaining to the said jewelry. What could be the grounds H may invoke to invalidate the contract? a) There is a mistake on the part of H in signing the contract. b) There is violence exerted by G causing her to sign the contract. c) G fraudulently secured her consent in signing the contract. d) H was seriously intimidated when she signed the contract. 10. I sells his land to J. The sale is in a private instrument. What is the status of the contract? a) Voidable b) Unenforceable c) Void d) Valid 11. K informed L that the house K was selling was never infested by termites, but the truth is he's selling the house because it was treated for termites a month ago. L bought the house believing in the words of K. The contract is voidable because: a) Consent is vitiated by mistake b) Consent is vitiated by undue influence c) Consent is vitiated by fraud d) Consent is vitiated by intimidation 12. The parents wanted to transfer to their children, both 18 years of age, their properties during their lifetime. They executed a deed of sale for 3 million pesos, but the children actually did not pay a single centavo for the transaction. What best describes the contract? a) The contract is voidable because their children are unemancipated. b) The contract is void as it is absolutely simulated. c) The contract is valid as between the parties. d) The contract is unenforceable because it did not follow the Statute of Frauds. 13. M leased his red truck to N. However, what appeared in the document of which they themselves had drafted is that M is leasing his blue truck to N. What legal actions can the parties take? a) Ask for the annulment of the contract b) Ask for the reformation of the instrument c) Ratify the undertaking d) Back out from the agreement 14. A contract where the parties hide their real agreement to which they are bound as a rule. a) Void contract b) Relatively simulated contract c) Absolutely simulated contract d) Onerous contract 15. O is a jewelry appraiser. He found and sold a ring to P stating that it was a 24-carat gold ring even though it was only an 18-carat gold ring. P bought it and paid for it with cash. Is the contract defective? a) Yes. It is voidable because of fraud. b) No. It is valid and enforceable because the contract is already consummated. c) Yes. It is unenforceable because the sale is not in writing. d) Yes. It is void because O has no clear possession of the ring as he just found it. 16. The following are incapable of giving consent to a contract, except: a) 16 years old teenagers b) Person under the state of drunkenness c) Insane persons d) Deaf-mutes who do not know how to write 17. One of the following is not a requisite of cause in a contract. Which is it? a) It must exist. b) It must not be false. c) It must be clearly stated in the contract. d) It must be lawful. 18. The adoption or affirmation of a contract which is defective because of a party’s vitiated consent or incapacity. a) Annulment b) Rescission c) Reformation d) Ratification 19. It exists when a person takes improper advantage of his power over the will of another depriving the latter of a reasonable freedom of choice. a) Intimidation b) Violence c) Undue Influence d) Coercion 20. Q offers to landscape R's house for P250,000. He gives R 10 days within which to make up his mind. On the 10th day, Q decided to withdraw his offer. R also made up his mind on the same day and decided to accept the offer. R communicated it the next day. Is the offer still effective? a) No, since there is no consideration and Q decided to withdraw the offer within the option period. b) Yes, even there is no consideration R decided to accept the offer within the option period. c) No, the option period elapsed, and whether there is a consideration or none, it is still effective. d) Yes, the option period elapsed, and whether there is a consideration or none, it is now ineffective. 21. S, being the only child of spouses T and U, knew for a fact that she will inherit all the properties of her parents upon their death. During the lifetime of her parents, she is already offering for sale on a particular property which forms part of her inheritance. Can S validly do this? a) No. Future inheritance cannot be the subject of a contract. b) Yes. As she is the only child of her parents, and it will be under her name soon. c) No. The contract is speculative. d) Yes. S has an inchoate right over the property. 22. An oral contract of sale of a piano worth P50,000 between V, the seller and a minor, and W, the buyer and an insane person. The piano has been delivered and the price is already paid. State the status of the contract. a) Valid and Enforceable b) Voidable c) Unenforceable d) Void 23. X owes Y the sum of P15,000 under an oral contract perfected in 2008. In 2019, they crossed each other's way in a reunion. X decided to pay his debt. Can X recover what he has paid now that he's having financial difficulty because of the pandemic? a) Yes. Since the debt is prescribed, X can recover the amount he paid. b) No. The recovery of the debt payment, which is already one year, has already elapsed. c) No. The payment of debt is considered a natural obligation. d) Yes. It is only an oral contract, so he can recover the amount he paid. 24. Z sold his particular car to AA for 2 million pesos. Z's intention in selling his car is for him to raise an amount as a capital for an ecstasy manufacturing laboratory. Will this affect the status of the contract between Z and AA? a) Yes. The contract is considered voidable because the intended activity is illegal. b) No. Motive, no matter how illegal, will not affect the validity of the contract c) Yes. The contract is considered void because it contravenes the law. d) No. However, Z is criminally liable. 25. BB, the guardian of CC, sold a hectare from CC's farm for P1,000,000. The value of the land is P1,500,000. The contract is: a) Voidable b) Unenforceable c) Valid and Enforceable d) Rescissible 26. A source of an obligation that arises when a wrong is committed without any preexisting relations. a) Crime b) Natural obligation c) Quasi-delict d) Quasi-contract 27. It is one where the whole liability is to be paid or fulfilled proportionately by the different debtors and/or is to be demanded also proportionately by the different creditors. a) Joint Obligation b) Indivisible Obligation c) Indivisible Obligation d) Solidary Obligation 28. One of the following is a void obligation: a) DD is obliged to give EE P5,000 if EE goes to Paris, France. b) DD is obliged to pay EE P5,000 if DD goes to Tokyo, Japan. c) DD is obliged to sell his land to EE if he wins in the sweepstakes on a ticket that he had already purchased. d) DD is obliged to give EE P10,000 if EE cannot carry an elephant in one hand. 29. One of the following is a determinate thing. Which is it? a) A horse with pink tail b) A ring with diamond embellishment c) My only wristwatch d) A brown cow 30. Consider the following statements: I. The nullity of the principal obligation carries with it the nullity of the penal clause. II. The nullity of the principal obligation does not carry with it the nullity of the penal clause. III. The nullity of the penal clause carries with it the nullity of the principal obligation. IV. The nullity of the penal clause does not carry with it the nullity of the principal obligation. Which of the following statements are true? a) Statements I and III are true. b) Statements I and IV are true. c) Statements II and III are true. d) Statements II and IV are true. 31. The following obligations are divisible, except an obligation: a) Which by its nature, is susceptible of partial performance b) Which has for its object the execution of a certain number of days of work c) To give definite things d) Which has for its object the accomplishment of work by metrical units 32. In case of an obligation subject to a suspensive condition, what is the effect if the object of the obligation is lost through the fault of the debtor during the pendency of the condition? a) The obligation is not extinguished. b) The obligation is extinguished. c) The creditor shall be liable to pay damages. d) The debtor shall be liable to pay damages. 33. FF and GG proportionately owe HH and II, solidary debtors, P180,000.00. The share of FF in the debt is 25%, while that of GG is 75%. The share of HH in the credit is 65%, while that of II is 35%. How much may HH collect from FF and GG, respectively? a) P45,000; P135,000 b) P117,000; P63,000 c) P180,000, P0 d) P0, P180,000 34. Consignation alone without any tender of payment is sufficient in the following cases, except: a) When the creditor presents the title to the obligation for collection. b) When the creditor is absent or unknown or does not appear at the place of payment. c) When two or more persons claim the same right to collect. d) When the creditor refuses to give a receipt without just cause. 35. JJ will give his grandson, KK, P200 every month until he finishes his first collegiate year. The obligation with a: a) Suspensive period b) Resolutory period c) Legal period d) Judicial period 36. LL borrowed P50,000.00 from MM with NN as guarantor. However, MM is also indebted to LL in the amount of P30,000.00. Both debts have become due. MM demanded payment from LL, but LL became insolvent with assets of only P15,000.00 which he used in partial payment of his debts to MM. In this case: a) MM can hold NN liable for the remaining P35,000.00. MM cannot set up compensation as regards the amount that LL owes MM because he (NN) is not a principal debtor. b) MM can hold NN liable for only P5,000.00 because NN can set up compensation as regards the amount that LL owes MM. c) MM can hold NN liable for the amount of P15,000.00 only because that is the amount that LL owes MM. d) MM cannot hold NN liable for any amount because the insolvency of LL released NN from liability. 37. OO is alternatively bound to deliver the following items in favor of PP: I. Specific car II. Specific digital watch III. Specific laptop The right of choice is given to the creditor. Which of the following rules is incorrect? a) If the car is lost through a fortuitous event, OO may deliver the digital watch or the laptop upon the choice of the PP. b) If the car and the digital watch are lost through OO’s fault, PP may claim the price of either the car or the digital watch plus damages. c) If all are lost through a fortuitous event, the obligation is extinguished. d) If all are lost through the fault of the OO, the obligation is extinguished. 38. Under a contract executed on November 1, 2020, QQ obliged himself to give a specific horse to RR on December 10, 2020. On December 8, 2020, RR demanded the delivery of the horse, but QQ did not comply. The following day, the horse was struck by lightning and died instantly. a) The obligation of QQ is extinguished because the loss is due to fortuitous event and QQ was not in default. b) The obligation of QQ is not extinguished because QQ can deliver another horse. c) The obligation of QQ is not extinguished because QQ was in default. d) The obligation of QQ is not extinguished because the demand was not made on the due date. 39. A month before the due date of his obligation with a period, SS was seen by his neighbors leaving his house with all his baggage. The next day, TT, his creditor, went to his house and found no one. He was furious when SS’s neighbors told him that SS went away. What happens to the obligation of SS? a) The obligation was condoned. b) The obligation becomes extinguished. c) The obligation becomes demandable. d) The obligation was compensated. 40. On February 14, 2019, UU agreed to give VV a horse if he passes the October 2019 CPA Licensure Examination. The horse gave birth to a colt on August 18. Who has the right to the colt if VV passed the examination? a) VV, the right over the horse and the colt retroacts to February 14 b) UU, the colt is not included in the obligation of UU c) UU, because he was still in the possession of the horse d) UU, the condition is not yet fulfilled by the date of birth of the colt 41. WW obliged himself to give 5 grams of shabu to XX. Later the parties agreed that WW would instead give to XX 5 sacks of rice. Which of the following statement is correct? a) The novation is void because the original obligation is void. Hence, XX cannot demand the delivery of 5 sacks of rice from WW. b) The novation is valid because the new obligation is valid. Hence, XX can demand the delivery of 5 sacks of rice from WW. c) The original obligation although void is validated by the new obligation. Hence, XX can demand the delivery of 5 sacks of rice from WW. d) The new obligation is only voidable because WW had not yet performed the original obligation at the time of the novation. Accordingly, the new obligation is binding and XX may demand the delivery of 5 sacks of rice from WW until the new obligation is annulled by a proper action in court. 42. YY, ZZ, AZ and BY are obliged to give CX, DW, EV, FU, and GT P20,000.00. a) CX may collect from YY P20,000.00 b) CX may collect from YY P4,000.00 c) CX may collect from YY P1,000.00 d) CX may collect from YY P5,000.00 43. HS, IR and JQ are solidary debtors of KP, LO and MN, solidary creditors, in the amount of P36,000.00. LO renounces the whole obligation without the consent of KP and MN. The debtors accepted LO’s generosity. What is the effect of the renunciation? a) The whole obligation is extinguished. b) Only P12,000.00 is extinguished. c) No part of the obligation is extinguished because not all the creditors consented to the renunciation. d) Only P4,000.00 is extinguished. 44. NM owes OL the following debts: P6,000.00 due on June 12; P6,000.00 due on June 15; P6,000.00 due on June 18; and P6,000.00 due on June 20. All debts are unsecured except the debt due on June 20 which is secured by a pledge of NM’s diamond ring to OL. By agreement, the benefit of the term on the 4 debts was granted to OL. Assuming that NM has P6,000.00 on June 18 and is ready to pay OL, which of the following statements is correct? a) NM may apply his payment only to the debt due on June 20 because it is the most burdensome to him. b) NM may apply his payment of P6,000.00 to any of the debts due on June 12, June 15, and June 18 since they are all due as of June 18. c) NM must apply the payment proportionately to the debts due as of June 18 at P2,000.00 each. d) NM may apply the payment to any of the four debts. 45. The clothing shop undertook to tailor a special graduation gown for PK in time for her valedictory address on the 20th of April, 2021. Since there were occasional brownouts, the shop failed to finish the gown on the agreed date. Will the shop be liable for delay? a) No, because there is no demand yet b) No, because the brownouts were fortuitous events c) Yes, because time is of the essence d) Yes, because of the negligence 46. The following statements concerning payment by cession are true, except one. Which is it? a) The creditors become the owners of the properties of the debtor that were ceded to them. b) Payment by cession extinguishes the obligation only to the extent covered by the proceeds of the sale of the debtor’s properties. c) The debtors must be insolvent. d) Cession affects all the properties of the debtor except those that are exempt from execution. 47. QJ borrowed P5,000 from RI in February 2021. The debt is evidenced by a promissory note executed by QJ wherein she promised to pay as soon as she has money or as soon as possible. What kind of obligation does QJ have to RI? a) Pure obligation b) Conditional obligation c) Obligation with a period d) Obligation with a penal clause 48. SH owes TG P3,000 with UF as guarantor. I. The condonation of the P3,000 debt of SH does not condone the guaranty of UF II. The condonation of the P3,000 debt of SH condones the guaranty of UF III. The condonation of the guaranty of UF does not condone the P3,000 debt of SH IV. The condonation of the guaranty of UF condones the P3,000 debt of SH Which of the following statements are correct? a) Statement I and III b) Statement I and IV c) Statement II and III d) Statement II and IV 49. In facultative obligations, if the substitute is lost or destroyed through the fault of the debtor, is he liable for damages? a) Yes, regardless of whether the loss or destruction took place before or after the substitution. b) If loss or destruction took place after the substitution, no; if before, yes. c) No, regardless of whether the loss or destruction took place before or after the substitution. d) If loss or destruction took place after the substitution, yes; if before, no. 50. After being robbed by her trustee, VE borrowed P50,000.00 from WD. Subsequently, WD proposed to VE that XC would assume WD’s debt. VE accepted the proposal of WD. This substitution of debtor is known as: a) Expromision b) Delegacion c) Traditio d) Dacion en pago Summary of Answers 1. A 2. D 3. B 4. C 5. D 6. D 7. A 8. C 9. D 10. D 11. C 12. C 13. B 14. B 15. A 16. B 17. C 18. D 19. C 20. A 21. A 22. C 23. C 24. B 25. D 26. C 27. A 28. B 29. C 30. B 31. C 32. D 33. A 34. A 35. B 36. B 37. D 38. A 39. C 40. D 41. A 42. C 43. A 44. B 45. C 46. A 47. C 48. C 49. D 50. B Summary of Answers – Explained 1. A Contracts that are voidable or annullable are binding unless they are annulled by a proper action in court. (Art. 1390, Civil Code of the Philippines) 2. D Absolutely simulated or fictitious contracts are inexistent and void from the beginning. (Art. 1409(2), Civil Code of the Philippines) 3. B Only deaf-mutes who do not know how to write cannot give consent to a contract. (Art. 1337, Civil Code of the Philippines) 4. C II is valid and enforceable. A threat to enforce one's claim through competent authority, if the claim is just or legal, does not vitiate consent. (Art. 1335, Civil Code of the Philippines) I is voidable. Contracts agreed to in a state of drunkenness or during a hypnotic spell are voidable. (Art. 1328, Civil Code of the Philippines) III is unenforceable. The sale of real property or of an interest therein must be in writing, as compliance with the Statute of Frauds. (Art. 1403(2)(e), Civil Code of the Philippines) IV is void. The contract’s cause, object or purpose is contrary to law, morals, good customs, public order, or public policy. (Art. 1409(1), Civil Code of the Philippines) 5. D Statement 1 is false. Inexistent and void contracts cannot be ratified. (Art. 1409, Civil Code of the Philippines) Statement 2 is false. A qualified acceptance constitutes a counter-offer. (Art. 1319, Civil Code of the Philippines) 6. D The incapacity is subject to the modifications determined by law, which means they can also give valid consent in some circumstances. (Art. 1329, Civil Code of the Philippines) A contract where necessaries are those sold and delivered to a minor or other person without capacity to act is considered a modification for persons incapable of giving consent. He, then, must pay a reasonable price therefor. (Art. 1489, Civil Code of the Philippines) Thus, the contract is valid and enforceable. 7. A Statement 1 is false. The action to claim rescission must be commenced within four years. (Art. 1389, Civil Code of the Philippines) Statement 2 is false. An offer made through an agent is accepted from the time acceptance is communicated to him [agent]. (Art. 1322, Civil Code of the Philippines) Statement 3 is true. Real contracts are not perfected until delivery of the thing subject matter of the contract. (Art. 1316, Civil Code of the Philippines) 8. C A contract undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them is rescissible. (Art. 1381(3), Civil Code of the Philippines) 9. D There is intimidation when one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants, or ascendants, to give his consent. (Art. 1335, Civil Code of the Philippines) 10. D The contract is valid because it was in writing, as compliance with the Statute of Frauds. (Art. 1403(2)(e), Civil Code of the Philippines) However, if J wants to register the sale with the Register of Deeds, he may compel I to execute the sale in a public instrument. (Art. 1357, Civil Code of the Philippines) 11. C There is fraud when, through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to. (Art. 1338, Civil Code of the Philippines) There is a huge possibility that L will not buy the said house if he was informed of the termites. 12. C A relative simulation, when it does not prejudice a third person and is not intended for any purpose contrary to law, morals, good customs, public order, or public policy binds the parties to their real agreement. (Art. 1346, Civil Code of the Philippines) 13. B If the instrument does not represent the true intention of the meeting of the minds of the parties, by reason of mistake, fraud, inequitable conduct, or accident, one of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed. (Art. 1359, Civil Code of the Philippines) They can reform the specification of the truck being leased. 14. B Relatively simulated contract takes place when the parties conceal their true agreement. (Art. 1345, Civil Code of the Philippines) 15. A An opinion made by an expert signify fraud if the other party has relied on the former's special knowledge. (Art. 1341, Civil Code of the Philippines) In this case, O is a jewelry appraiser who is expected to be an expert in rings. 16. B Unemancipated minors, insane or demented persons, and deaf-mutes who do not know how to write are people who cannot give consent to a contract. (Art. 1337, Civil Code of the Philippines) Emancipation takes place by the attainment of the age of majority which is eighteen years. (Art. 234, Family Code) 17. C The statement of a false cause in contracts shall render them void. (Art. 1353, Civil Code of the Philippines) Although the cause is not stated in the contract, it is presumed that it exists and is lawful. (Art. 1354, Civil Code of the Philippines) 18. D Ratification cleanses the contract from all its defects from the moment it was constituted. (Art. 1396, Civil Code of the Philippines) 19. C There is undue influence when a person takes improper advantage of his power over the will of another, depriving the latter of a reasonable freedom of choice. (Art. 1337, Civil Code of the Philippines) 20. A If there is no consideration for the option, the offerer may withdraw the offer at anytime within the option period provided there has not yet been any acceptance. (Art. 1324, Civil Code of the Philippines) 21. A As a general rule, no contract may be entered into upon future inheritance. (Art. 1347, Civil Code of the Philippines) 22. C If both parties are incapable of giving consent, the contract is unenforceable. (Art. 1403, Civil Code of the Philippines) Unemancipated minors, insane or demented persons, and deaf-mutes who do not know how to write are people who cannot give consent to a contract. (Art. 1337, Civil Code of the Philippines) 23. C When a right to sue upon a civil obligation has lapsed by extinctive prescription, the obligor who voluntarily performs the contract cannot recover what he has delivered or the value of the service he has rendered. (Art. 1424, Civil Code of the Philippines) After 10 years, the debt of X prescribes for failure of Y to file the necessary action. If X voluntarily pays Y, he cannot recover anymore what he has paid under the provisions of natural obligation. 24. B The particular motives of the parties in entering into a contract are different from the cause thereof. (Art. 1351, Civil Code of the Philippines) The contract is void if the cause is illegal; the validity of the contract is not affected by the illegality of the motive. 25. D A contract entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are object thereof are rescissible. (Art. 1381(1), Civil Code of the Philippines) P1,500,000 x ¼ = P375,000 P1,500,000 – P1,000,000 = P500,000 P375,000 26. C One of the sources of obligation is quasi-delict. (Art. 1157(5), Civil Code of the Philippines) Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no pre-existing contractual relation between the parties, is called a quasi-delict. (Art. 2176, Civil Code of the Philippines) 27. A Joint obligation is an obligation where the credit or debt shall be presumed to be divided into as many shares as there are creditors or debtors, the credits or debts being considered distinct from one another. (Art. 1208, Civil Code of the Philippines) Thus, it is to be paid or fulfilled proportionately by the different debtors and/or is to be demanded proportionately by different creditors. 28. B Choice B is subject to a void potestative condition. A potestative suspensive condition depends upon the will of one of the contracting parties. In this case, the obligation is left to the will of the debtor, and it cannot, therefore, be easily demanded. When the fulfillment of the condition depends upon the sole will of the debtor, the conditional obligation shall be void. (Art. 1182, Civil Code of the Philippines) In order not to be liable, the debtor will not just fulfill the condition. Choice A is valid because the condition depends exclusively upon the will of the creditor. Choice C is valid because the condition depends upon chance. If the fulfillment of the condition depends upon chance or upon the will of a third person, the obligation shall take effect in conformity with the provisions of the Code. (Art. 1182, Civil Code of the Philippines) Choice D is valid because a negative impossible condition renders the obligation pure. It is as if there was no condition. The condition not to do an impossible thing shall be considered as not having been agreed upon. (Art. 1183, Civil Code of the Philippines) 29. C A thing is determinate when it is particularly designated or physical segregated from all others of the same class. (Art. 1460, Civil Code of the Philippines) 30. B The nullity of the penal clause does not carry with it that of the principal obligation. The nullity of the principal obligation carries with it that of the penal clause. (Art. 1230, Civil Code of the Philippines) 31. C Obligations to give definite things and those which are not susceptible of partial performance shall be deemed to be indivisible. When the obligation has for its object the execution of a certain number of days of work, the accomplishment of work by metrical units, or analogous things which by their nature are susceptible of partial performance, it shall be divisible. (Art. 1225, Civil Code of the Philippines) 32. D When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give and the thing is lost through the fault of the debtor, he shall be obliged to pay damages. (Art. 1189(2), Civil Code of the Philippines) 33. A The concurrence of two or more creditors or debtors in one and the same obligation does not imply that each one has a right to demand or is bound to render, respectively. There is a solidary liability. (Art. 1207, Civil Code of the Philippines) Joint obligation is an obligation where the credit or debt shall be presumed to be divided into as many shares as there are creditors or debtors, the credits or debts being considered distinct from one another. (Art. 1208, Civil Code of the Philippines) HH as a solidary debtor can collect P180,000. However, since the debtors are joint, he can’t collect more than P45,000 (25% of P180,000) from FF, and not more than P135,000 (75% of P180,000) from GG. After collecting the whole amount of the debt, he must give P63,000 (35% of P180,000) to II representing II’s share in the credit. 34. A Consignation alone shall produce the same effect in the following cases: (1) When the creditor is absent or unknown, or does not appear at the place of payment (2) When he is incapacitated to receive the payment at the time it is due (3) When, without just cause, he refuses to give a receipt (4) When two or more persons claim the same right to collect (5) When the title of the obligation has been lost (Art. 1256, Civil Code of the Philippines) 35. B Obligations with a resolutory period take effect at once but terminate upon arrival of the day certain. (Art. 1193, Civil Code of the Philippines) Resolutory period makes the obligation valid up to a day certain and terminates upon arrival of the period. The day certain here is the end of his first year in college. 36. B Compensation shall take place when two persons, in their own right, are creditors and debtors of each other. (Art. 1278, Civil Code of the Philippines). Since LL had a debt to MM of P50,000.00, and vice versa, MM also borrowed P30,000.00 from LL, there is a partial compensation of P30,000.00. This leaves us with a remaining debt of LL to MM amounting to P20,000.00. He already paid the P15,000.00. Thus, the only unpaid borrowings is P5,000.00. NN, as the guarantor may set up compensation as regards what the creditor may owe the principal debtor. (Art. 1280, Civil Code of the Philippines) MM can hold NN liable for the remaining P5,000.00. 37. D The responsibility of the debtor shall be governed by the following rules: (1) If one of the things is lost through a fortuitous event, he shall perform the obligation by delivering that which the creditor should choose from among the remainder, or that which remains if only one subsists. (2) If the loss of one of the things occurs through the fault of the debtor, the creditor may claim any of those subsisting, or the price of that which, through the fault of the former, has disappeared, with a right to damages. (3) If all the things are lost through the fault of the debtor, the choice by the creditor shall fall upon the price of any one of them, also with indemnity for damages. (Art. 1205, Civil Code of the Philippines) An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the debtor, and before he has incurred in delay. (Art. 1262, Civil Code of the Philippines) 38. A Those obliged to deliver or to do something incur in delay from the time oblige judicially or extrajudicially demands from them the fulfillment of their obligation. (Art. 1169, Civil Code of the Philippines) On December 8, QQ would have been delayed since RR already demanded. However, the date agreed upon by both parties is yet to commenced. This means that the QQ is still not in default by the time of RR’s demand. An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the debtor, and before he has incurred in delay. (Art. 1262, Civil Code of the Philippines) 39. C The debtor shall lose every right to make use of the period when the debtor attempts to abscond. (Art. 1198(5), Civil Code of the Philippines) Therefore, the period is disregarded, and the obligation becomes pure and immediately demandable. 40. D The effects of a conditional obligation to give, once the condition has been fulfilled, shall retroact to the day of the constitution of the obligation. Nevertheless, if the obligation is unilateral, the debtor shall appropriate the fruits and interests received, unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting the same was different. (Art. 1187, Civil Code of the Philippines) In this case, the birth of the colt happened prior to the fulfillment of the condition, and no stipulation was agreed by parties to attribute the fruits [colt] to VV. 41. A The novation is void if the original obligation was void, except when annulment may be claimed only by the debtor or when ratification validates acts which are voidable. (Art. 1298, Civil Code of the Philippines) 42. C If from the law, or the nature or the wording of the obligations, the credit or debt shall be presumed to be divided into as many equal shares as there are creditors or debtors, the creditors or debts being considered distinct from one another. (Art. 1208, Civil Code of the Philippines) In this case, the obligation is presumed to be joint with 20 distinct debts as follows: YY owes CX P1,000.00 YY owes DW P1,000.00 YY owes EV P1,000.00 YY owes FU P1,000.00 YY owes GT P1,000.00 ZZ owes CX P1,000.00 ZZ owes DW P1,000.00 ZZ owes EV P1,000.00 ZZ owes FU P1,000.00 ZZ owes GT P1,000.00 AZ owes CX P1,000.00 AZ owes DW P1,000.00 AZ owes EV P1,000.00 AZ owes FU P1,000.00 AZ owes GT P1,000.00 BY owes CX P1,000.00 BY owes DW P1,000.00 BY owes EV P1,000.00 BY owes FU P1,000.00 BY owes GT P1,000.00 P20,000.00 ÷ 5 creditors = P4,000.00 ÷ 4 debtors = P1,000.00 43. A Novation, compensation, confusion, or remission of the debt, made by any of the solidary creditors or with any of the solidary debtors shall extinguish the obligation. (Art. 1215, Civil Code of the Philippines) 44. B He who has the various debts of the same kind in favor of one and same creditor, may declare at the time of making the payment, to which of them the same must be applied. Unless the parties so stipulate, or when the application of payment is made by the party for whose benefit the term has been constituted, application shall not be made as to debts which are not yet due. If the debtor accepts from the creditor a receipt in which an application of the payment is made, the former cannot complain of the same, unless there is a cause for invalidating the contract. (Article 1252) It is the designation of the debt to which should be applied to the payment made by a debtor who has various debts of the same kind in favor of one. 45. C The demand by the creditor shall not be necessary in order that delay may exist when from the nature and the circumstances of the obligation, it appears that the designation of the time was a controlling motive for the establishment of the contract. (Art. 1169(2), Civil Code of the Philippines) The clothing shop is fully aware that the performance of the obligation after the designated date would no longer benefit PK. 46. A Dation in payment is a form of payment whereby property is alienated to the creditor. (Art. 1245, Civil Code of the Philippines) The debtor may cede or assign his property to his creditors in payment of his debts. This cession shall only release the debtor from responsibility for the net proceeds of the thing assigned. (Art. 1255, Civil Code of the Philippines) In cession, the creditors only acquire the right to sell the thing and apply the proceeds to their credits proportionately. On the other hand, the creditor becomes the owner of the thing given by the debtor in dation. 47. C When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period. (Art. 1180, Civil Code of the Philippines) 48. C The renunciation of the principal debt shall extinguish the accessory obligations; but the waiver of the latter shall leave the former in force. (Art. 1273, Civil Code of the Philippines) 49. D The loss or deterioration of the thing intended as a substitute, through the negligence of the obligor, does not render him liable. But once the substitution has been made, the obligor is liable for the loss of the substitute on account of his delay, negligence, or fraud. (Art. 1206, Civil Code of the Philippines) 50. B Novation which consists in substituting a new debtor in the place of the original one, may be made even without the knowledge or against the will of the latter, but not without the consent of the creditor. (Art. 1293, Civil Code of the Philippines) Delegacion happens when the creditor accepts a third person to take place of the debtor at the instance of the latter.