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BSBA-HRM Final Examination

Total questions: 100

Worksheet time: 50mins

Name
Class
Date
1.

Obligations arising from law are demandable only when they are expressly determined by:

a)

Equity

b)

Custom

c)

Law

d)

Agreement

2.

Which of the following is NOT a source of obligation under Article 1157 of the Civil Code?

a)

Law

b)

Contracts

c)

Moral duties

d)

Quasi-delicts

3.

In an obligation to give a determinate thing, the debtor is bound to preserve the thing with the diligence of:

a)

Extraordinary care

b)

A good father of a family

c)

Slight care

d)

The creditor

4.

The right of the creditor to the fruits of the thing arises from the time the obligation _______.

a)

is demanded

b)

is perfected

c)

arises

d)

is delivered

5.

An obligation is a _____ necessity to give, to do, or not to do.

a)

True

b)

Moral

c)

Juridical

d)

Equitable

6.

The debtor incurs delay when the creditor __________________ demands performance of the obligation.

a)

judicially

b)

extrajudicially

c)

either judicially or extrajudicially

d)

patiently

7.

Demand is not necessary to place the debtor in delay when time is of the essence.

a)

True

b)

False

c)

Only if stipulated

d)

When provided by law

8.

In reciprocal obligations, delay begins from the moment one party fulfills his obligation.

a)

True

b)

False

c)

Only upon demand

d)

Only upon breach

9.

________ is defined as the intentional evasion of the fulfillment of the obligation.

a)

Negligence

b)

Accident

c)

Fraud

d)

Fortuitous event

10.

Any waiver of an action for future fraud is considered:

a)

Valid

b)

Void

c)

Voidable

d)

Enforceable

11.

_____ is the omission of the diligence required by the nature of the obligation.

a)

Fraud

b)

Negligence

c)

Delay

d)

Contravention of Tenor

12.

Responsibility arising from negligence may be regulated by the agreement of the parties except when contrary to law.

a)

Always

b)

Never

c)

Sometimes

d)

Presumed

13.

A fortuitous event is an event which could not be foreseen or which though foreseen was inevitable.

a)

True

b)

False

c)

Only natural disasters

d)

Only acts of God

14.

In the performance of obligation, the general rule is no person shall be responsible for fortuitous events.

a)

True

b)

False

c)

Maybe

d)

It depends

15.

A penal clause is an accessory obligation intended to insure performance by imposing a penalty in case of breach.

a)

True

b)

False

c)

Only in contracts

d)

Only in obligations to give

16.

Courts may reduce the penalty if there is partial or irregular performance of the obligation.

a)

Never

b)

Only by agreement

c)

As a matter of right

d)

As provided by law

17.

An obligation is presumed joint unless solidarity is expressly stated or required by law.

a)

True

b)

False

c)

Only in contracts

d)

Only in money obligations

18.

In a ____ obligation, each debtor is liable only for his proportionate share on the debt.

a)

Solidary

b)

Subsidiary

c)

Joint

d)

Collective

19.

Solidary liability exists when each debtor is liable for the entire obligation.

a)

True

b)

False

c)

Only by implication

d)

Only in crimes

20.

Payment by one solidary debtor extinguishes the obligation as to all other debtors.

a)

True

b)

False

c)

Only partially

d)

Only upon consent

21.

The obligation is indivisible when the prestation cannot be partially performed.

a)

True

b)

False

c)

Only by agreement

d)

Only if money

22.

Divisibility or indivisibility of an obligation depends primarily on the nature of the prestation.

a)

True

b)

False

c)

Number of parties

d)

Place of payment

23.

A period or _____ refers to a future event which is certain to happen.

a)

Condition

b)

Term

c)

Mode

d)

Cause

24.

A suspensive condition gives rise to the obligation only upon fulfillment of the condition.

a)

True

b)

False

c)

Void

d)

Illegal

25.

A resolutory condition extinguishes the obligation upon the happening of the condition.

a)

True

b)

False

c)

Only partially

d)

Only upon agreement

26.

A purely potestative condition dependent solely upon the will of the debtor is void.

a)

True

b)

False

c)

Valid

d)

Enforceable

27.

In alternative obligations, the right of choice belongs to the debtor unless expressly granted to the creditor.

a)

True

b)

False

c)

Void

d)

Illegal

28.

The loss of one prestation in an alternative obligation without fault of the debtor allows him to choose among the remaining prestations.

a)

True

b)

False

c)

Extinguishes obligation

d)

Converts to damages

29.

A facultative obligation is one where only one prestation is due, but another may be substituted.

a)

True

b)

False

c)

Alternative

d)

Solidary

30.

Payment means the complete performance of the obligation.

a)

True

b)

False

c)

Partial

d)

Conditional

31.

Payment may be made by a third person even without the knowledge of the debtor.

a)

True

b)

False

c)

Only with consent

d)

Only by court order

32.

Payment made to an incapacitated person is valid insofar as it has been beneficial to him.

a)

True

b)

False

c)

Void

d)

Illegal

33.

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

a)

Consignation

b)

Novation

c)

Dation en pago

d)

Compensation

34.

Application of payments applies when a debtor has several debts of the same kind in favor of the same creditor.

a)

True

b)

False

c)

Void

d)

Illegal

35.

_____ takes place when two persons, in their own right, are creditors and debtors of each other

a)

Consignation

b)

Novation

c)

Dation en pago

d)

Compensation

36.

Compensation does not take place when one of the debts arises from a deposit.

a)

True

b)

False

c)

Always

d)

Only by agreement

37.

Confusion or merger occurs when the qualities of debtor and creditor meet in one person.

a)

True

b)

False

c)

Assignment

d)

Payment

38.

Novation requires the extinguishment of the old obligation and the creation of a new one.

a)

True

b)

False

c)

Only change of parties

d)

Only change of object

39.

Novation is never presumed and must be clearly expressed or implied.

a)

True

b)

False

c)

Void

d)

Illegal

40.

Loss of a determinate thing without fault of the debtor extinguishes the obligation.

a)

True

b)

False

c)

Only generic

d)

Only monetary

41.

A ______ is a meeting of minds whereby one binds himself to give something or to render some service.

a)

Obligation

b)

Contract

c)

Delict

d)

Quasi-contract

42.

Which of the following is the correct set of elements of a valid contract?

a)

consent, acceptance, signature

b)

consent, object, form

c)

consent, object, cause

d)

consent, capacity, prestation

43.

It is manifested by the concurrence of offer and acceptance.

a)

Consent

b)

Object

c)

Cause

d)

Intention

44.

An ____ becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance is conveyed.

a)

Offer

b)

Acceptance

c)

Advertisement

d)

Incapacity

45.

Contracts are perfected by mere consent, except real contracts.

a)

True

b)

False

c)

Void

d)

Unenforceable

46.

The object of a contract must be lawful, possible, and determinate.

a)

True

b)

False

c)

Only lawful

d)

Only determinate

47.

The cause of onerous contracts is the prestation or promise of the other party.

a)

True

b)

False

c)

Motive

d)

Consideration

48.

Contracts without cause or with unlawful cause are void.

a)

True

b)

False

c)

Voidable

d)

Rescissible

49.

Contracts shall be obligatory in whatever form they may have been entered into provided all essential requisites are present.

a)

True

b)

False

c)

Only written

d)

Only public

50.

The freedom to contract is limited by law, morals, good customs, public order, and public policy.

a)

True

b)

False

c)

Equity only

d)

Custom only

51.

Contracts take effect only between the parties and their assigns and heirs except in cases provided by law.

a)

True

b)

False

c)

Only heirs

d)

Only assigns

52.

A stipulation pour autrui exists when a contract clearly and deliberately confers a favor upon a third person.

a)

True

b)

False

c)

Void

d)

Illegal

53.

Reformation of instruments is allowed when the instrument does not express the true intention of the parties.

a)

True

b)

False

c)

Void

d)

Illegal

54.

Interpretation of contracts primarily seeks to determine the intention of the contracting parties.

a)

True

b)

False

c)

Literal meaning

d)

Court discretion

55.

When a contract admits of several interpretations, the one that renders it effective shall be adopted.

a)

True

b)

False

c)

Void

d)

Illegal

56.

______ contracts are those which cause economic damage or lesion to one of the parties or third persons.

a)

Rescissible

b)

Unenforceable

c)

Void

d)

Voidable

57.

Rescission of contracts requires a judicial action.

a)

True

b)

False

c)

Void

d)

Illegal

58.

______ contracts are those where consent is vitiated or one party is incapacitated.

a)

Unenforceable

b)

Voidable

c)

Void

d)

Rescissible

59.

The action for annulment of voidable contracts prescribes in _____ years.

a)

2

b)

4

c)

5

d)

10

60.

________ cleanses the contract of its defects retroactively.

a)

Acceptance

b)

Ratification

c)

Reformation

d)

Judicial action

61.

Unenforceable contracts cannot be a basis of a right of action in court.

a)

True

b)

False

c)

Maybe

d)

It depends

62.

The Statute of Frauds applies only to executory contracts.

a)

True

b)

False

c)

Void

d)

Illegal

63.

_____ contracts produce no legal effect and cannot be ratified.

a)

Rescissible

b)

Voidable

c)

Void

d)

Unenforceable

64.

The principle of in pari delicto applies when both parties are equally at fault.

a)

True

b)

False

c)

Void

d)

Illegal

65.

__________ are obligations which cannot be enforced by court action but authorize the retention of what has been voluntarily delivered.

a)

Criminal obligations

b)

Civil obligations

c)

Natural obligations

d)

Economic obligations

66.

Payment of a prescribed debt constitutes a natural obligation.

a)

True

b)

False

c)

Void

d)

Illegal

67.

Quasi-contracts arise from lawful, voluntary, and unilateral acts.

a)

True

b)

False

c)

Crimes

d)

Negligence

68.

Negotiorum gestio refers to the voluntary management of the property or affairs of another without authority.

a)

True

b)

False

c)

Agency

d)

Deposit

69.

Solutio indebiti occurs when something is received when there is no right to demand it.

a)

True

b)

False

c)

Payment

d)

Deposit

70.

Obligations arising from contracts have the force of law between the parties.

a)

True

b)

False

c)

Void

d)

Illegal

71.

Absolute simulation of a contract renders it void.

a)

True

b)

False

c)

Voidable

d)

Rescissible

72.

Relative simulation does not affect the validity of the contract if the concealed agreement is lawful.

a)

True

b)

False

c)

Void

d)

Illegal

73.

A contract entered into in the name of another without authority is unenforceable unless ratified.

a)

True

b)

False

c)

Void

d)

Illegal

74.

Ratification of an unauthorized contract must be made by the principal.

a)

True

b)

False

c)

Agent

d)

Third person

75.

Interpretation of contracts may consider the contemporaneous acts of the parties.

a)

True

b)

False

c)

Void

d)

Illegal

76.

Contracts bind the parties not only to what is expressly stipulated but also to consequences according to good faith and usage.

a)

True

b)

False

c)

Void

d)

Illegal

77.

Void contracts cannot be the source of legal rights.

a)

True

b)

False

c)

Voidable

d)

Natural

78.

Consent is vitiated by error, violence, intimidation, or fraud.

a)

True

b)

False

c)

Void

d)

Illegal

79.

Contracts entered into under intimidation are _______

a)

Unenforceable

b)

Void

c)

Voidable

d)

Rescissible

80.

The cause of a contract must exist at the time of its perfection.

a)

True

b)

False

c)

Delivery

d)

Registration

81.

Contracts expressly prohibited by law are ____.

a)

Unenforceable

b)

Void

c)

Voidable

d)

Rescissible

82.

Courts may fix the duration of an obligation when the period depends upon the will of the debtor.

a)

True

b)

False

c)

Void

d)

Illegal

83.

A natural obligation once voluntarily performed cannot be recovered.

a)

True

b)

False

c)

Void

d)

Illegal

84.

Contracts entered into beyond the powers granted to the agent is called ______.

a)

Void

b)

Voidable

c)

Rescissible

d)

Unenforceable

85.

If both contracting parties were incapable of giving consent, the contract becomes _____ when either the parent or guarding of one of the contracting party ratifies the same.

a)

Unforceable

b)

Void

c)

Voidable

d)

Rescissible

86.

Impossible conditions, those contrary to good customs or public policy, and those prohibited by law shall annul the obligations which depends upon them.

a)

True

b)

False

c)

Maybe

d)

It depends

87.

If the thing improved by its nature, or by time, the improvement shall inure to the benefit of the _____.

a)

Debtor

b)

Creditor

c)

Third person

d)

Representative

88.

It is a principle which states that the condition is deemed fulfilled when the obligor voluntarily prevents its fulfillment.

a)

Constructive fulfillment

b)

In pari delicto

c)

Substantial performance

d)

Reciprocal obligation

89.

Which of the following is not an incident wherein a debtor loses the right to make use of the period?

a)

When the debtor becomes insolvent

b)

When the debtor attempts to abscond

c)

When the debtor violates his own undertaking

d)

When the debtor opted for novation

90.

What is the reckoning period if an action for annulment of contract is based on mistake or fraud?

a)

Date of execution of the contract

b)

Discovery of fraud or mistake

c)

Delivery of the thing subject of the contract

d)

Stipulation of the parties

91.

A obliged himself to deliver a specific piano to B on August 1, 2025. On July 29, 2025, the piano was destroyed by an earthquake without A’s fault. What is the effect on the obligation?

a)

The obligation is extinguished.

b)

A must deliver another piano

c)

A must pay damages

d)

The obligation is converted into a monetary obligation

92.

X borrowed PhP100,000 from Y payable on June 30, 2025. On June 25, 2025, X offered full payment but Y refused without just cause. On July 2, the money was stolen from X. Is X still liable?

a)

Yes, because payment was not made on the due date.

b)

No, because Y was in delay.

c)

Yes, because loss of money does not extinguish obligations.

d)

No, because the obligation became impossible.

93.

D promised to sing at C’s wedding because of her unique talent. Before the wedding date, D became permanently ill and unable to sing. What is the effect?

a)

D is liable for damages.

b)

C may demand a substitute singer.

c)

The obligation is converted into an indemnity

d)

The obligation is extinguished.

94.

E promised to give F PhP50,000 if F passes the bar examinations. F passed on his third attempt. May F demand payment?

a)

Yes, because the law favors obligations.

b)

No, because the condition was impossible.

c)

Yes, because the condition was fulfilled.

d)

No, because the condition was not complied with.

95.

G and H entered into an oral contract for the sale of land worth PhP2,000,000. H paid PhP500,000 as down payment, which G accepted. Is the contract enforceable?

a)

Yes, because there was partial performance.

b)

No, because it violates the Statute of Frauds.

c)

Yes, because consent was present.

d)

No, because ownership was not transferred.

96.

J borrowed PhP300,000 from K with an agreed interest of 10% per year, but the interest agreement was not in writing. When J paid only the principal, K demanded interest. Is K entitled to interest?

a)

Yes, because interest was agreed upon.

b)

No, because interest must be in writing.

c)

Yes, because verbal contracts are valid.

d)

No, because interest is presumed paid.

97.

L delivered 90 sacks of rice instead of the agreed 100 to M. Due to urgent need, M accepted the delivery without protest. Later, M demanded damages. Is M entitled to damages?

a)

No, because M's acceptance extinguished the obligation.

b)

Yes, because there was incomplete performance.

c)

No, because M waived his right.

d)

Yes, because delivery was late.

98.

N paid O PhP20,000 believing it was a valid debt. N later discovered that no such debt existed.

What is N’s remedy?

a)

None, because payment was voluntary.

b)

Demand moral damages.

c)

Recover the amount as solutio indebiti.

d)

File an action for annulment.

99.

P entered into a contract with Q after Q threatened him with serious harm. After one year, P continued performing the contract without objection. May P still file for annulment of contract?

a)

Yes, because consent was vitiated.

b)

No, because intimidation was justified.

c)

Yes, because the contract was void.

d)

No, because the contract was deemed ratified.

100.

R sold a parcel of land to S, but R was not the owner. Later on, T, the true owner, file an action for recovery of land. May R refuse to return the land to T and base his right on his contract with S?

a)

Yes, because the contract of R and S was valid.

b)

No, because the contract is unenforceable.

c)

Yes, because the contract may be rescinded by T.

d)

No, because the contract was void from the beginning.