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MIDTERM EXAM

Total questions: 50

Worksheet time: 31mins

Name
Class
Date
1.

The delivery to and acceptance by the creditor of a cashier’s check produces the effect of payment of the debtor’s obligation.

a)

TRUE

b)

FALSE

2.

Payment by cession does not always extinguish the whole obligation.

a)

TRUE

b)

FALSE

3.

Legal subrogation requires the consent of the original parties and of the third person.

a)

TRUE

b)

FALSE

4.

In novation, if the new obligation is void, the original one shall subsist, unless the parties intended that the former relation should be extinguished in any event.

a)

TRUE

b)

FALSE

5.

When the principal obligation is extinguished in consequence of a novation, accessory obligations subsist.

a)

TRUE

b)

FALSE

6.

Novation may be made even without the knowledge of the creditor.

a)

TRUE

b)

FALSE

7.

Payment shall be made to one of the parties to the constitution of the obligation to extinguish the obligation.

a)

TRUE

b)

FALSE

8.

Payment made in good faith to any person in possession of the evidence of credit shall release the debtor.

a)

TRUE

b)

FALSE

9.

Dation in payment is governed by the law of sales.

a)

TRUE

b)

FALSE

10.

Legal compensation shall not be proper when one of the debts arises from a depositum.

a)

TRUE

b)

FALSE

11.

If a person should have against him several debts which are susceptible of compensation, the rules on the application of payments shall apply to the order of the compensation.

a)

TRUE

b)

FALSE

12.

In partial compensation, no obligation is extinguished.

a)

TRUE

b)

FALSE

13.

When one or both debts are rescissible or voidable, they may be compensated against each other before they are judicially rescinded or avoided.

a)

TRUE

b)

FALSE

14.

. In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of payment shall be the basis of payment.

a)

TRUE

b)

FALSE

15.

If the debt produces interest, payment of the principal shall not be deemed to have been made until the interests have been covered.

a)

TRUE

b)

FALSE

16.

An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed due to a fortuitous event.

a)

TRUE

b)

FALSE

17.

Compensation shall take place in reciprocal obligations.

a)

TRUE

b)

FALSE

18.

The guarantor may not set up compensation as regards what the creditor may owe the principal debtor

a)

TRUE

b)

FALSE

19.

The obligation is extinguished from the time the characters of the creditor and debtor are compensated in the same person.

a)

TRUE

b)

FALSE

20.

in a joint obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000: How much can A validly demand from V?

(a)  

21.

Payment made by the debtor to a third person who is not the creditor shall never extinguish the obligation.

a)

TRUE

b)

FALSE

22.

in a joint obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000:

How much can V recover from W if he paid the amount that A can compel him to pay?

(a)  

23.

in a joint obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000:

How much should A give to B if V paid him the amount that he can compel V to pay?

(a)  

24.

In a solidary obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000:

How much can A validly demand from X?



(a)  

25.

In a solidary obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000:

How much can X recover from W if he paid the amount that A can compel him to pay?



(a)  

26.

In a solidary obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000:

How much should A give to B if X paid him the amount that he can compel X to pay?

(a)  

27.

In a passive solidarity with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000:

How much can A validly demand from V?

(a)  

28.

In a passive solidarity with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000:

How much can V recover from Z if he paid the amount that A can compel him to pay?

(a)  

29.

In a passive solidarity with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000:

How much should A give to B if V paid him the amount that he can compel V to pay?

(a)  

30.

In a solidary obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000 and V is insolvent:

How much can A validly demand from X?

(a)  

31.

In a solidary obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000 and V is insolvent:

How much can X recover from Y if he paid the amount that A can compel him to pay?

(a)  

32.

In a solidary obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000 and V is insolvent:

How much should A give to B if X paid him the amount that he can compel X to pay?

(a)  

33.

In a joint obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000 where V is insolvent:

How much can A validly demand X?

(a)  

34.

In a joint obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000 where V is insolvent:

How much can X recover from Y if he paid the amount that A can compel him to pay?

(a)  

35.

In a joint obligation with V, W, X, Y and Z as debtors and A and B as creditors in the amount of P900,000 where V is insolvent:

How much should A give to B if X paid him the amount that he can compel X to pay?

(a)  

36.

In three of the following cases, compensation shall NOT be proper. Which is the exception?

a)

commodatum

b)

gratuitous support

c)

civil liability arising out of criminal offenses

d)

bank deposit

37.

When two persons in their own right are debtors and creditors of each other, there is:

a)

When two persons in their own right are debtors and creditors of each other, there is:

b)

compensation

c)

consignation

d)

novation

38.

A owes X P50,000 payable on or before June 30, 1999. S, who is not a party to the contract and without the consent and against the will of A, paid X the P50,000 on April 1, 1999 when the prevailing rate of interest was 12% per annum.

a)

S can ask reimbursement from A in the amount of P50,000 plus 12% interest from April 1 to June 30, 1999.

b)

S can ask reimbursement from A in the amount of P50,000.

c)

S cannot ask reimbursement from A because the payment by S is without the consent and against the will of A.

d)

S can ask refund from X because the payment by S was against the will of A.

39.

When an obligation is extinguished because of the passage of time, this is:

a)

fulfillment of a resolutory condition

b)

arrival of a resolutory period

c)

novation

d)

rescission

40.

The following shall produce the effect of payment of debts:

a)

delivery of check

b)

tender of central bank notes

c)

delivery of promissory note

d)

dacion en pago

41.

Which of the following will NOT necessarily extinguish an obligation?

a)

Condonation

b)

Novation

c)

Death of the obligor

d)

mutual dissent

42.

If a person pays the creditor without the knowledge or against the will of the debtor, the following are true, EXCEPT:

a)

He can recover only insofar as the payment has been beneficial to the debtor.

b)

He cannot recover the amount from the creditor as payment of what is not due.

c)

His remedy is only a simple personal action for reimbursement.

d)

He can be subrogated to the rights of the creditor if the latter agrees.

43.

Payment made to a third person will NOT be valid if:

a)

The payment redounded to the benefit of the creditor.

b)

The payment was made to a person in possession of evidence of credit.

c)

The payment was given to the original creditor after an assignment of the credit without notice to the debtor.

d)

The payment was made to an agent of the creditor who was authorized to receive payment.

44.

Which of the following will always extinguish an obligation?

a)

tender of payment

b)

insolvency of the debtor

c)

death of the obligor

d)

none of the above

45.

X owes Y P40,000. With the consent of both parties, Z pays Y P20,000 which makes Y and Z creditors of X to the amount of P20,000 each. X becomes bankrupt and has only P20,000 assets left.

a)

Z should get the P20,000.

b)

Y and Z should divide the P20,000 equally.

c)

X may choose whom to pay

d)

Y should get the P20,000.

46.

Bertulfo and Claudio promised to deliver a particular car valued at P100,000 to Manuela on or before September 15, 1999. September 15, 1999 came and upon demand by Manuela for delivery from Bertulfo and Claudio, Bertulfo was willing to deliver but Claudio refused to deliver. Thereafter, the car was destroyed. In this case:

a)

An action for specific performance will lia against both Bertuflo and Claudio.

b)

Both Bertulfo and Claudio shall be liable for P50,000 each with damages.

c)

Bertulfo shall be liable for P50,000 without damages and Claudio shall be liable for P50,000 and damages.

d)

An action for specific performance will lie against Claudio only because of his refusal.

47.

In an obligation where only one prestation has been agreed upon, but to extinguish the obligation, the debtor is allowed to render another prestation, the obligation is:

a)

Disjunctive obligation

b)

Facultative obligation

c)

Obligation with penal clause

d)

Alternative obligation

e)

Joint obligation

48.

An obligation ceases to be alternative and becomes a simple obligation:

a)

When the debtor has already made a choice

b)

When the creditor has already made a choice

c)

When the choice of the debtor is consented to by the creditor

d)

When the choice of the creditor is consented to by the debtor

e)

None of the above

49.

It refers to a joint obligation:

a)

One in which each debtor is liable for the entire obligation, and each creditor is entitled to demand the whole obligation.

b)

One in which either one of the parties is indispensable and the other is not necessary.

c)

One in which the obligation of one is a resolutory condition of the obligation of the other, the non0fulfillment of which entitles the other party to rescind the contract.

d)

One in which each of the debtors is liable only for a proportionate part of the debt and each creditor is entitled only for a proportionate part of the credit.

50.

A and B are solidary debtor of X and Y, solidary creditors to the amount of P4,000. On the due date, X renounced gratuitously 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 B P2,000

c)

Any of the two

d)

None of the above