Obligations and Contracts: Part 1

A owes B P100,000. The obligation is perfected January 1. It becomes due June 30, but B only demands payment on July 1. A pays December 31. On what date does legal interest start to accrue?

• December 31 of the same year

• July 1 of the same year

• June 30 of the same year

• January 1 of the same year

In an alternative obligation, which statement best distinguishes it from a facultative obligation?

• Obligation is extinguished by fulfilling any one prestation

• There is only one principal obligation with a substitute

• There are several principal obligations to be performed

• Choice of prestation may be given to creditor

Which statement about facultative obligations is correct?

• Obligation is extinguished by delivering any one of several

• There are multiple principal obligations of equal rank

• Creditor chooses among several principal prestations

• Debtor may substitute another object at will before default

A must deliver a specific Honda car to B in Quezon City. At constitution, the car is in Manila. On delivery date, it is located in Makati. Where should A deliver?

• Quezon City per stipulation

• Manila City at constitution time

• Makati City as actual location

• Pasay City by default rule

X, Y, Z are solidary debtors to A, B, C for P2,700. A condones the entire debt in favor of X without B and C’s consent. What is the effect?

• Entire obligation is fully extinguished

• Condonation is void without B and C’s consent

• Only P300 in A’s favor is extinguished

• Only P900 portion in A’s favor is extinguished

What is the legal rate of interest for loan or forbearance of money, goods, or credit, and the rate allowed in judgments?

• 24 percent by special law

• 12 percent for all cases

• 9 percent uniformly applied

• 6 percent in both cases

A drew a check to B; B used it to pay C. C did not encash it for years; the bank failed and A died. What is the status of B’s obligation to C?

• Extinguished by prescription

• Not extinguished at all

• Extinguished by impossibility

• Extinguished by negligence

D borrowed P3,000 from C and pledged a specific laptop as collateral. At maturity, D defaulted; later both agreed the laptop settles the debt in full. What principle applies?

• Pactum commissorium renders it void

• Ownership transferred by dacion en pago fully

• Extinguished only if values are equal

• Ownership by pactum commissorium only

A borrowed P1,000 from B with a pledge of a specific watch to secure it. At maturity, B voluntarily returned the watch. What is the effect?

• Only loan is extinguished

• Only pledge is extinguished

• Neither loan nor pledge is extinguished

• Both loan and pledge are extinguished

A borrowed P1,000 from B with a pledge of a specific watch. At maturity, B returned the negotiable note evidencing the loan. What is the effect?

• Neither loan nor pledge extinguished

• Only pledge is extinguished

• Both loan and pledge extinguished

• Only loan is extinguished