MCQ

1.(A) Dation in payment (B) Barter (C) Exchange (D) Commodatum (E) Antichresis ---- whereby property is alienated to the creditor in satisfaction of a debt in money, shall be governed by the law of sales.

2.Payment shall be made to (a) the person in whose favor the obligation has been constituted (b) his successor in interest (c) any person authorized to receive it (d) any of the above (e) all of the above

3. Payment made by a (a) surety (b) guarantor (c) third person (d) all of the above (e) none of the above ----who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires the debtor's consent.

4 When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed (a) extinguished (b) fully complied with (c) completed (d) satisfied (e) complete without prejudice to damages as the case may be.

5 Which of the following is incorrect? (a) no title to registered land in derogation of that of the registered owner shall be acquired by prescription or adverse possession (b) Neither can prescription be allowed against the hereditary successors of the registered owner, because they merely step into the shoes of the decedent and are merely the continuation of the personality of their predecessor in interest (c) the disputed land covered by a certificate of title cannot be acquired by prescription regardless of petitioner's good faith (d) Laches is based upon equity and the public policy of discouraging stale claims (e) Article 1145 of the New Civil Code provides that real actions over immovable properties prescribe after thirty years

6. Which of the following is not correct? (a) Actions for the annulment of contracts prescribe in four years (b) If the ground for annulment is vitiation of consent by intimidation, the four-year period starts from the time such defect ceases (c) The running of this prescriptive period cannot be interrupted by an extrajudicial demand made by the party whose consent was vitiated.(d) a complaint may be dismissed when the facts showing the lapse of the prescriptive period are apparent from the records (e) none of the above.

7. Which of the following is correct? (a) In actions for reconveyance of property predicated on the fact that the conveyance complained of was null and void ab initio, a claim of prescription of action would be unavailing (b) The action or defense for the declaration of the inexistence of a contract does not prescribe (c) Equity, which has been aptly described as “justice outside legality,” can be applied against a statutory law (d) Laches is a doctrine in equity and our courts are basically courts of law and not courts of equity (d) laches cannot be set up to resist the enforcement of an imprescriptible legal right

8.Which of the following is a complete statement? (A) The power to rescind obligations is implied in reciprocal ones (B) The injured party may choose between the fulfillment and the rescission of the obligation (c) The right to rescind a contract arises once the other party defaults in the performance of his obligation (d) Those obliged to deliver or to do something incur in delay from the time the obligee judicially demands from them the fulfillment of their obligation (e) When the obligation or the law expressly so declares demand shall not be necessary in order that delay may exist.

9.Which of the following is INCORRECT? (A) In reciprocal obligations, as in a contract of sale, the general rule is that the fulfillment of the parties’ respective obligations should be simultaneous (B) No demand is generally necessary because, once a party fulfills his obligation and the other party does not fulfill his, the latter automatically incurs in delay.(C) when different dates for performance of the obligations are fixed, the default for each obligation must be determined by the rules given in the first paragraph of Art. 1169, that is, the other party would incur in delay only from the moment the other party demands fulfillment of the former’s obligation (D) even in reciprocal obligations, if the period for the fulfillment of the obligation is fixed, demand upon the obligee is no longer necessary before the obligor can be considered in default and before a cause of action for rescission will accrue.(E) From the moment one of the parties fulfills his obligation, delay by the other begins.

10. Which of the following is not CORRECT? (A) in the absence of a stipulation to the contrary, the power to rescind must be invoked judicially (B) The power to rescind can be exercised solely on a party's own judgment that the other has committed a breach of the obligation (C) as there is nothing in the contract of lease empowering the defendants to rescind it without resort to the courts, the defendants' action in unilaterally terminating the contract is unjustified. (D) the right to resolve reciprocal obligations, in case one of the obligors shall fail to comply with that which is incumbent upon him, is deemed to be implied (E) Rescission will be ordered only where the breach complained of is substantial as to defeat the object of the parties in entering into the agreement

11. A was supposed to pay B P1,000,000 on Dec. 31, 2005. But believing that the obligation was due and demandable already on Dec. 31, 2004, A paid B the P1,000,000 on said date. How much may A recover from B, say on June 30, 2005? (a) P1,000,000 only (b) P1,000,000 plus 1% per annum (c) P1,000,000 plus interest of 6% per annum (d) he cannot recover any amount (e) P1,600,000

12. Suppose in the preceding problem, A had paid prematurely the whole amount knowing fully well of the existence of the term, how much can A recover? (a) P1,000,000 only (b) P1,000,000 plus 1% per annum (c) P1,000,000 plus interest of 6% per annum (d) he cannot recover any amount (e) P1,600,000

13. On March 1, A sold to B a particular automobile. It was agreed that payment and delivery were to be made on March 31, but on March 15, A delivered the car and B paid for said car. Pending the arrival of March 31, should B return the car plus damages and should A return the price plus interest? (a) There should be no returning (b) It can be returned (c) there can be returning because by their actions both parties implicitly agreed changing the date (d) there can be returning because the problem deals with two unilateral obligations (e) both c & d

14. A borrowed money from B and pledged a medal with diamonds as security. It was agreed that A was to pay the money loaned with interest at the end of one year. Before the expiration of the one-year period, is A allowed to pay his debt and recover the medal pledged? (a) No, unless B consents (b) Yes, it is right to do so (c) No, because B would be deprived unnecessarily of his right to use the medal (d) Yes, because the principal obligation is already paid (e) No, the consent of B must first be obtained because the one-year period was established for their benefit.

15.A sold B some properties during the Japanese occupation. A received war notes as payment. After liberation, A sought to recover the properties on ground that the money paid to him was worthless. Is A correct? (a) Yes, A is correct because there was no payment at all (b) A is wrong, because he willingly sold the properties (c) A is not correct, because he was compelled to receive such notes (d) A is not correct because A willingly sold said properties and benefited with the use of the purchase money (e) A is not correct and he must suffer the worthlessness of the notes.

16. Legal tender means (a) valid payment (b) currency stipulated (c) that which a debtor may compel a creditor to accept in payment (d) notes and coins (e) money used during the transaction.

17. Which of the following statements is CORRECT about judicial costs? (a) the civil code governs costs (b) the rules of court is the reference for costs (c) the state is not exempt from payment of costs (d) none of the above (e) all of the above.

18.Which of the following applies to DATION IN PAYMENT? (A) the giving of the price may generally end the obligation of the buyer (b) there is no pre-existing credit (c) the cause or consideration is the price (d) there is greater freedom in the determination of the price (e) there is a pre-existing credit which extinguishes the obligation.

19. The proceeding by which a debtor’s creditor is subjected to the payment of his own debt to another is known as (a) dation in payment (B) sale (c) garnishment (d) interpleader (e) injunction.

20.Is payment to a person incapacitated to manage or administer his property valid ? (a) no, because the law says so (b) yes if he kept the thing delivered to him (c) no, even if the payment benefited him (d) yes, if he is benefited (e) both b and d.

21. A owes B P 1,000,000. When A paid B, the latter was already insane. However, the money was never spent, and A is still in the bankbook of B. Is the obligation extinguished? (a) no, because the payment was Invalid (b) No, because B was incapacitated to administer his property (c) Yes, because B has kept the money (d) both a & c (E) yes, because the payment was valid.

22. Suppose in the preceding problem, a swindler had asked B for P1,000,000 in exchange for a ring worth P500,000, does A’s payment to B remain valid? (a) yes, but up to P500,000 only (b) yes, up to P1,000,000 because he actually received it.(c) yes, the whole amount since he benefited to the same (d) Yes, A’s payment is valid only insofar as the payment has benefited him, (e) both a & d.

23. A borrowed P1 million from B. The loan was secured by a mortgage of A’s land in favor of B. Without the knowledge of A, C paid B the sum of P1m for A’s debt. A benefited to the amount of P1M. Which of the following statements is correct? (a) C can claim reimbursement fro A inasmuch as C paid A’s debt (b) C can recover the whole amount of P1M inasmuch as he benefited up to that amount (c) If A cannot pay, C cannot foreclose the mortgage on A’s land because there was really no subrogation (d) none of the above (e) all of the above.

24. A owes B the sum of P1M. C is the guarantor of A. A was able to pay B the sum of P400,000. D thinking that A still owed B P1M paid P1M to be against the will of A. Which of the following is not correct? (a) D cannot recover from A. (B) D may recover from A (C) D can recover only P600,000 because this is the only amount which benefited A. (D) If A cannot pay, D cannot ordinarily proceed against the guarantor C because D, having paid against the will of A, is not entitled to subrogation (E) both D and C.

25. Plaintiff, a seller in Japan sold to defendant-buyer some coal. While delivery was being made, the Philippine Congress imposed a specific tax of P10/metric ton of coal. So that the coal could enter Manila, the plaintiff-seller paid this tax. When defendant was asked for reimbursement, defendant refused to pay. Which of the statements below is CORRECT? (A) the buyer shall pay the tax. (b) the seller shall pay the tax (c) the seller shall pay the tax pursuant to the revenue system (d) the seller shall pay the tax since he merely paid in behalf of the buyer (e) although the Act provides that the seller may pay the tax, as is practiced under our revenue system, still the ultimate liability should fall upon the buyer.

26. A promises to deliver to B 100 bottles of wine on a certain day when a banquet will be held. The contract states that failure of a to do so on that day will result in forfeiture of P100,000. On that day, A was able to deliver only 90 bottles of wine. Which of the following is correct? (a) B can forfeit the P100,000 since there was no complete delivery (b) B need not pay the 100 bottles of wine since there was a violation of the agreement (c) B must pay the 90 bottles since he was benefited (d) there was an irregular performance of A’s obligation, hence he must be liable for damages (e) B need not pay for the 90 bottles because A is even liable still for damages for failure to deliver the 100 bottles.

27. A was obliged under a contract a contract with B, not to sell shares of stock for one year. A penal clause was provided. But A sold shares of stock within the period specified but damages were not proved by B to have been suffered by him. May A recover the penalty? (a) Yes, B may recover the penalty because the contract has a suspensive condition and it is voluntarily agreed (b) No. B may not recover the penalty because at any rate there was no damage done anyway (c) No, B cannot recover because the prohibition to sell his own shares is contrary to law (d) Yes, B may recover the penalty because the damage is not a relevant issue (e) No, B cannot recover the penalty because he has to prove the damage due to the breach.

28. A, B and C solidarily owe X P3M. X remitted C’s share. A, therefore paid later only P2M. Can A recover reimbursement? (a) Yes, but only from B and not from C (B) Yes, from both B and C (C) No, he cannot from anyone at all (d) Yes, but only from C (E) Yes, but only from B because C’s share was remitted and the remission was previous to the payment.

29. Which of the following is a modification of an obligation? (a) compensation (b) novation (c) confusion (d) remission (e) merger

30. Which of the following is best described as waiver? (a) compensation (b) novation (c) confusion (d) remission (e)merger

31. A and B are solitary debtors of X and Y, solidary creditors to the amount of P400,000. But X owes A P400,000 on account of a different obligation. Here we have what we call a ------ (a) compensation (b) novation (c) confusion (d) remission (e)merger

32. A and B are solidarily liable to X and Y, solidary creditors, for the payment of P800,000. A and X agreed that instead of paying P800,000, A will just paint X’s house. What happens here is -----(a) compensation (b) novation (c) confusion (d) remission (e)merger

33. A and B are solidary debtors of X and Y, solidary creditors to the amount of P4M. X tells A that he was waiving the whole obligation. What happens here is an example of ---------(a) compensation (b) novation (c) confusion (d) remission (e)merger

34.In 2004, A, B, and C bound themselves in solidum to give X p300,000 subject to the following stipulations: A to pay in 2005, B, if he passes the bar, and C in 2007. In 2005, how much can X demand from A? (A) p300,000 (B) p100,000 (C) p200,000 (D) X has a right to P300,000 MINUS B’s share (e) X can collect but minus C’s share.

35.Two people borrowed money and signed a promissory note promising to pay “juntos o separademente”. What is the nature of their liability? (a) joint (b) solidary (c) joint and solidary (d) pro rata (e) proportionate

36.Which of the following is an alternative obligation? (a) an insurance contract which stipulates that if the house is damaged B may either pay for the damage or rebuild the house (b) D is obliged to give C, at D’s option, either Object 1 or object 2 or object 3. (c)D promised to give C his diamond ring but it was stipulated that D could give his Toyota car as substitute (d)if the principal obligation is void, there is no necessity of giving the substitute (e) the right to choose is given only to the debtor.

37. Which of the following describes facultative obligation? (a) Various things are due but the giving of one is sufficient (b) if one of the prestations is illegal, the others may be valid and the obligation remains (c) if the principal obligation is void, there is no necessity of giving the substitute(d) none of the above (e) all of the above.

38.In which situation can the Court fix the period? (a) when my means permit me to do so (b) as soon as possible (c) in partial payment (d) none of the above (e) all of the above.

39. IN which of the situation can a period be inferred? (a) a contract to build a house (b) conditional donation (c) payment of a subscription of shares of stocks (d) none of the above (e) all of the above.

40.IN which of the following instances where the law imposes solidary liability? (a) obligations arising from tort (b) obligations arising from quasi-contracts (c) obligations of devisees and legatees (d) all of the above (e) only a & b.

41. The defendants X and Y, as partners in the management of a bakery, owed plaintiff Z the amount of P40,000. The trial court ordered each defendant liable for the whole amount (in solidum). Which of the following is correct? (a) the presumption is that they jointly liable (b) X and Y is liable only for P20,000 (c) Each is liable for the whole amount (d) the liability is solidary (e) both c and d.

42. To guaranty the obligation incurred by Felix Lafuente, a group of men, executed a bond in favor of the Oriental Commercial Company, where they promised to answer “individually and collectively” for the total amount. Which is best correct? (a) they are sureties and they are jointly liable (b) they are not sureties and therefore they are only solidarily liable (c) they are jointly liable and everyone is responsible for the whole amount (d) they are solidarily liable and everyone is individually responsible for the full payment of the obligation (e) they are jointly and severally liable.

43. Which obligation is demandable at once? (a) conditional (b) pure (c) resolutory (d) suspensive (e) facultative

44. Which of the following best describes a resolutory condition? (a) demandable at once (b) happening of the event gives rise to the obligation (c) not demandable at once (d) happening of the event extinguishes the obligation (e) both C and B.

45. If the obligation depends upon the sole will of the debtor, then (a) one can go to court and ask the court to fix the period (b) the obligation is void (c) only voidable (d) the obligation is deemed to be one with a period (e) contract is valid.

46. The contract provides: “that the term or period of this contract shall be as long as the party of the first part has need for the electric light posts of the party of the second part”. Which statement is best correct? (a) the contract contains a potestative condition hence the whole contract is void (b) the contract is valid, subject to court action (c) the contract depends upon the sole will of the debtor, in which case, the conditional obligation is void (d) it is valid because the conditions imposed are casual conditions as it depends upon a third person (e) the contract is subject to mixed conditions hence void.

47 Within what period should the action to fix the period be filed? (a) 4 years (b) 8 years (c) 10 years (d) 1 year only (e) none of the above.

48. If the contract does not provide for a period, can the creditor demand its fulfillment? (a) no, because the period has to be fixed first (b) No, because the obligation is void (c) Yes, because after all, it is still a valid obligation (d) No, because an action for the court to fix the period has yet to be filed (e) yes, because the parties may agree on the period themselves.

49. Which does not belong to the group? (a) compensation (b) novation (c) confusion or merger (d) loss of thing due (e) fulfillment of suspensive condition.

50. X owes Y P10,000. Because the obligation was due and demandable, X delivered a parcel of land to Y who agreed to receive the land. Prior to the delivery, however, X mortgaged the land to Z. Which statement below is at best correct? (a) there is a dacion en pago hence the obligation is extinguished (b) The obligation is not extinguished since dacion en pago is invalid here (c) the dacion is valid since it was with the consent of the creditor (d) the debtor is not declared insolvent hence the dacion is valid (e) dation is invalid because the encumbrance (mortgage) is prejudicial to the creditor