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BSBA HRM 3-3 MIDTERMS

Total questions: 54

Worksheet time: 30mins

Name
Class
Date
1.

State your FULL NAME and SECTION.

4 lines
2.

Which of the following is not true about novation?

a)

Subjective novation may be done without the consent of the creditor.

b)

The novation is void if the original obligation was void.

c)

The original obligation shall subsist if the new obligation is void.

d)

Novation is a juridical act which extinguishes the original obligation and gives to a new one.

3.

Which of the following is not a right of a creditor in an obligation to do or not to do?

a)

To undo what has been poorly done

b)

To ask a third party to the obligation at the expense of the debtor

c)

To demand for payment of damages

d)

To deliver the thing including its fruits, accessions and accessories

4.

Which of the following is not considered a breach of obligation?

a)

Fraud

b)

Fortuitous event

c)

Negligence

d)

Contravention of tenor

5.

Payments of debt in money shall be made in the currency stipulated. Otherwise, it shall be in the currency which is _____ in the Philippines.

a)

US Dollar

b)

Japanese Yen

c)

Legal tender

d)

Philippine Peso

6.

Statement 1: In an obligation to give a generic thing, the creditor may demand that the obligation be complied with at the expense of the debtor.

Statement 2: In an obligation to give a determinate thing, the creditor has a right to claim damages if the debtor fails to deliver the accessions and accessories.

Which option correctly evaluates the statements?

a)

Statements 1 and 2 are both correct.

b)

Statement 1 is correct; statement 2 is wrong.

c)

Statement 1 is wrong; Statement 2 is correct.

d)

Statements 1 and 2 are both wrong.

7.

It refers to alienation of property in favor of the creditor in satisfaction of a debt in money.

a)

Mutuum

b)

Dacion en pago

c)

Donation inter vivos

d)

Pactum commissorium

8.

Which of the following may prevent an obligor from being responsible for breach of obligation?

a)

When it is expressly provided by the law or stipulation of the parties

b)

When the nature of the obligation requires the assumption of risk

c)

When the cause of breach is a fortuitous event

d)

All of the above

9.

In reciprocal obligations, the injured party has the right to choose between fulfillment and rescission of the obligation. However, if he chose fulfillment and the same has become impossible, he shall no longer be allowed to seek rescission.

a)

True

b)

False

c)

Neither true, nor false

d)

It depends

10.

It refers to obligations with a fixed date or certain day for its fulfillment which entitles the creditor right to demand for fulfillment upon the arrival of such day.

a)

Conditional obligation

b)

Obligation with a Period

c)

Alternative Obligation

d)

Divisible and Indivisible obligation

11.

It refers to a novation wherein the original debtor introduces a third party as the substitute debtor in a pre-existing obligation.

a)

Compensatio Morae

b)

Expromission

c)

Delegacion

d)

Consignation

12.

What does the principle of constructive fulfillment states?

a)

The effects of conditional obligation to give, once the condition has been fulfilled, shall retroact to the day of the constitution of the obligation.

b)

The creditor may, before the fulfillment of the condition, bring the appropriate actions for the preservation of his right.

c)

The conditional obligation shall be void if the fulfillment of the condition depends upon the sole will of the debtor.

d)

The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment.

13.

To whose account does the undoing of a forbidden thing be charged if an obligation consists in not doing a specific act?

a)

Debtor

b)

Creditor

c)

Third party

d)

Representative

14.

What are the rules if the thing subject of an obligation to give deteriorates during the pendency of the condition? Select all that apply.

a)

If deterioration is without the fault of the debtor, the obligation is extinguished.

b)

If deterioration is through the fault of the debtor, the creditor may choose between rescission or fulfillment.

c)

If deterioration is caused by its nature, the creditor shall be liable for damages.

d)

If deterioration is without fault of the debtor, the creditor shall be liable for the impairment.

15.

Statement 1: In alternative obligations, the debtor has the right of choice.

Statement 2: However, he shall have no right to choose from prestations that are impossible, unlawful or those which could not have been the object of an obligation.

Which option correctly evaluates the statements?

a)

Statements 1 and 2 are both correct.

b)

Statements 1 and 2 are both wrong.

c)

Statement 1 is correct; Statement 2 is wrong.

d)

Statement 1 is wrong; Statement 2 is correct.

16.

A solidary creditor has the right to assign his right to third party without the consent of the other creditors.

a)

True

b)

False

c)

Neither true, nor false

d)

It depends

17.

It refers to a condition which gives birth to the obligation.

a)

Conditional obligation

b)

Potestative condition

c)

Suspensive condition

d)

Resolutory condition

18.

Statement 1: Payment by one of the solidary debtors extinguishes the obligation.

Statement 2: Payment by a solidary debtor shall entitle him to reimbursement from his co-debtors.

Which option correctly evaluates the statements?

a)

Statement 1 is correct.

b)

Statement 2 is wrong.

c)

Statements 1 and 2 are both correct.

d)

Statements 1 and 2 are both wrong.

19.

Payment through check is considered payment immediately upon delivery of the same to the obligee.

a)

True, because checks are considered legal tender in the Philippines.

b)

True, because a check is as good as cash.

c)

False, because check will only have the effect of payment upon encashment.

d)

False, because payment must be made in Philippine peso.

20.

In solidary obligations, the share of an insolvent solidary debtor shall be borne by the other co-debtors proportionately.

a)

True, because it is rational to divide the among all debtors.

b)

False, because the share should be in proportion to the debt.

c)

True, because the joint debtors are responsible for each other.

d)

False, because it is irrational for a debtor to be free from liability.

21.

What is the effect of a suspensive impossible condition involving an obligation to do?

a)

The obligation remains valid.

b)

The obligation becomes void.

c)

The condition remains valid.

d)

The condition becomes void.

22.

Statement 1: Subrogation transfers to the persons subrogated the credit with all the rights thereto appertaining.

Statement 2: The debtor who has consented to the assignment of rights made by a creditor in favor of a third person cannot set up against the assignee the compensation which would pertain to him against the assignor.

Statement 3: Objective novation must be agreed upon by both creditor and debtor.

Which option correctly evaluates the statements?

a)

Statements 1 and 2 are both wrong.

b)

Statements 2 and 3 are both correct.

c)

Statements 1, 2, and 3 are all correct.

d)

Statements 2 and 3 are both wrong.

e)

None of the choices is correct.

23.

Which of the following is not a source of an obligation?

a)

Contract, Quasi-contract

b)

Law

c)

Delict, Quasi-delict

d)

Act or omission not punishable by law

24.

May a creditor demand a thing of superior quality in an obligation which consists of a delivery of an indeterminate thing which quality has not been agreed upon?

a)

Yes

b)

No

c)

Maybe

d)

It depends

25.

The remission of the entire debt, obtained by one of the solidary debtors, entitles him to reimbursement from his co-debtors.

a)

True, because the subject debtor caused the extinguishment of the obligation.

b)

True, because the subject debtor paid the entire obligation.

c)

False, because the subject debtor did not pay the debt in cases of remission.

d)

False, because the subject debtor pays without the consent of the co-debtors.

26.

Which of the following set of words is not a mode of extinguishing an obligation?

a)

payment, condonation, compensation, novation

b)

suspensive condition, pure obligation, obligation with a penal clause

c)

rescission, confusion, prescription, remission

d)

annulment, loss of the thing, fulfilment of resolutory condition

27.

It is a type of fraud which manifests in the performance of the obligation and does not necessarily amount to cancellation of the contract.

a)

Ordinary

b)

Incidental

c)

Serious

d)

Causal

28.

Statement 1: The creditor has the duty to deliver the fruits of the thing subject of the obligation.

Statement 2: The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises.

Statement 3: The creditor shall acquire real right over the thing and its fruits only upon delivery of the same.

Which option correctly evaluates the statements?

a)

Statements 1 and 2 are both correct.

b)

Statements 2 and 3 are both correct.

c)

Statements 1 and 3 are both correct.

d)

Statements 1, 2 and 3 are all correct.

29.

A pure obligation is demandable at once because the performance of which neither depends upon a future or uncertain event nor upon a past event unknown to the parties.

a)

True

b)

False

c)

Neither true, nor false

d)

It depends

30.

Statement 1: If the debt produces interest, payment of the principal shall not be deemed to have been made until the interests have been covered.

Statement 2: If application of payment cannot be inferred, the debt which is more onerous to the debtor shall be deemed to have been satisfied.

Statement 3: If debts are of the same nature and burden, the payment shall be applied according to the date the debts were incurred.

Which option correctly evaluates the statements?

a)

Statements 1, 2, and 3 are all correct.

b)

Only statements 1 and 2 are correct.

c)

Statements 1, 2 and 3 are all wrong.

d)

Only statements 2 and 3 are wrong.

31.

Statement 1: A joint debtor is liable only up to the extent of his debt.

Statement 2: A joint creditor may only demand payment up to the extent of his share in the debt.

Which option correctly evaluates the statements?

a)

Statements 1 and 2 are both correct.

b)

Statements 1 and 2 are both wrong.

c)

Statement 1 is correct; Statement 2 is wrong.

d)

Statement 1 is wrong; Statement 2 is correct.

32.

“No demand, no delay” is an absolute rule wherein an obligor may not be held liable for delay in the performance of the obligation if the creditor did not make any prior demand.

a)

True

b)

False

c)

Neither true, nor false

d)

It depends

33.

It refers not only to the delivery of money, but also performance, in any manner, of an obligation.

a)

Consignation

b)

Compensation

c)

Payment

d)

Contractual agreement

34.

The following are instances for a thing subject of an obligation to be deemed lost, except:

a)

When the thing perishes

b)

When the thing becomes unknown

c)

When the thing becomes hidden

d)

When the thing goes out of commerce

35.

Condonation is essentially based on the liberality of the creditor, thus no acceptance by the debtor or obligor is required.

a)

True

b)

False

c)

Neither true, nor false

d)

It depends

36.

Which of the following instances constitutes “in pari delicto”?

a)

Debtor contravenes the tenor of the obligation, while the creditor pays the debtor notwithstanding the breach.

b)

Debtor incurs delay in the performance of his obligation, while the creditor likewise incurs delay.

c)

The debtor enters into the contract in bad faith, while the creditor is in good faith.

d)

The debtor fulfills his obligation in reciprocal obligation, while the creditor fails to perform his.

37.

Statement 1: Responsibilities arising from future fraud may validly be waived.

Statement 2: Responsibilities arising from fraud are demandable in all obligations.

Statement 3: Responsibilities arising from future fraud may be regulated by the courts.

Which option correctly evaluates the statements?

a)

Statements 1 and 2 are both wrong.

b)

Statements 2 and 3 are both wrong.

c)

Statements 1 and 3 are both wrong.

d)

All statements are wrong.

38.

What does the latin term “bonus pater familias” mean?

a)

Extraordinary diligence of a good father of a family

b)

Diligence of a good father of a family

c)

Diligence of a good mother of a family

d)

Extraordinary diligence of a good mother of a family

39.

Which of the following statements is not true in obligations with a penal clause?

a)

The debtor cannot exempt himself from the performance of the obligation by paying only the penalty.

b)

The creditor cannot demand fulfillment of the obligation and payment of penalty at the same time.

c)

Then penalty shall substitute the indemnity for damages and payment of interest in case of non-compliance.

d)

The nullity of the penal clause carries with it the nullity of the principal obligation.

40.

It refers to the negligence resulting from an injury sustained by a third party with which no contract or relationship exists.

a)

Culpa contractual

b)

Culpa criminal

c)

Culpa aquiliana

d)

Culpa mea

41.

Which of the following instances does not require a demand by a creditor from a debtor?

a)

When the performance of the obligation is subject to a suspensive condition

b)

When the obligor sets the period within which to make a payment/ performance

c)

When the service to be rendered was a controlling motive for the establishment of the contract

d)

When a fortuitous event prevents a debtor to perform the obligation

42.

Statement 1: Delay can only occur in positive obligations (to give and to do).

Statement 2: Delay will not occur in negative obligations (not to give and not to do).

Which option correctly evaluates the statements?

a)

Both statements are correct.

b)

Both statements are wrong.

c)

Either statement 1 or 2 is correct.

d)

Neither of the statements are wrong.

43.

What do you call a novation which takes place upon the initiative of a third party who assumes the obligation of the original debtor?

a)

Delegacion

b)

Expromission

c)

Consignation

d)

Reciprocal obligation

44.

A joint indivisible obligation gives rise to __________ from the time any of the debtors does not comply with his undertaking.

a)

Delay in the performance of the obligation

b)

Indemnity for damages

c)

Action for rescission

d)

Demand for fulfilment

45.

For whose benefit shall the improvement of a thing inure if it improves by nature during the pendency of the condition?

a)

Debtor

b)

Creditor

c)

Incapacitated third person

d)

Successor-in-interest

46.

It refers to the omission of the degree of diligence required by the nature of the obligation and corresponds with the circumstances of the persons, of the time, and of the place.

a)

Fraud

b)

Delay

c)

Negligence

d)

Contravention of the tenor

47.

Obligations may be modified by any of the following, except:

a)

Change in object

b)

Change in active subject

c)

Change in passive subject

d)

Change in fortuitous event

48.

In alternative obligations, the choice of the debtor shall produce no effect except from the time it has been communicated.

a)

True

b)

False

c)

Neither true, nor false

d)

It depends

49.

It takes place when something is received when there is no right to demand and it was unduly delivered through mistake.

a)

Dacion en pago

b)

Negotiorum gestio

c)

Solutio indebiti

d)

Condonation of debt

50.

Demand is necessary for a delay to commence, except:

a)

When the obligation or law expressly so declares

b)

When the demand would be useless

c)

When time is of the essence

d)

All of the above

51.

In obligations with a period, the debtor shall lose his right to make use of the period in the following instances, except:

a)

When he becomes insolvent after the obligation has been contracted

b)

When he did not comply with the securities he promised

c)

When he is ready to comply with the obligation

d)

When he attempts to abscond

52.

What is the source of an obligation when an injury or damage is caused to another without fault or negligence of the offending party nor a pre-existing contractual relation between the parties?

a)

Contract

b)

Quasi-contract

c)

Delict

d)

Quasi-delict

53.

Which of the following statements is true?

a)

A payment made to incapacitated person is valid if he kept the thing delivered or insofar as the payment has been beneficial to him.

b)

A representative is not allowed to receive payment on behalf of the creditor.

c)

Payment made to a third person has to be proven if the creditor ratifies the payment made to such third person.

d)

Payment made to the creditor after a judicial declaration that the debtor may retain the debt is valid.

54.

It refers to the act of depositing the thing or amount due with the proper court when the creditor refuses to accept a tender of payment without just cause.

a)

Cession in payment

b)

Consignation

c)

Dation in payment

d)

Application of payment