CPA Review School of the Philippines

Manila

OBLIGATIONS Dante Dela Cruz

1 Where the penalty takes the place of indemnity for the damages and for the payment of interest
a. Where there is stipulation to the effect that damages or interest may still be recovered, despite the
presence of the penalty clause presence of the penalty clause
b. When the debtor refuses to pay the penalty imposed in the obligation
c. When the debtor is guilty of fraud or dolo in the fulfillment of the obligation
d. When there is breach of the obligations

2 A owes B P10,000. With the consent of A and B, C pays B P5,000. Now B and C are the creditors of A to the
amount of P5,000 each. Suppose, A has only P5,000. Which is correct?
a. B should be preferred
b. C should be preferred
c. B and C should be paid pro-rata
d. A may choose whom to pay

3 A, B and C obliged themselves solidarily to give D a specific car valued at P240,000. On due date, D
demanded delivery but the debtors failed to deliver. The next day, while A was still in possession of
the car, it was lost due to a fortuitous event. The right of D is
a. To proceed against any of the debtors for the value of the car plus damages
b. To proceed against A only because the car was lost while in his possession
c. None, because the obligation is extinguished due to a fortuitous event
d. To proceed against B and C because they were not in possession of the car when it was lost due
to a fortuitous event

4 A makes a check payable to bearer and gives the check to C, who gives it to D who finally gives it to A. The
obligation of A is extinguished by

a. Merger b. Compensation c. Novation d. Prescription

5 A owes B P10,000. C, a friend of A approaches B and tells him "I will pay you what A owes you. From now
on consider me your debtor, not A. A is to be excused. If B agrees, there is
a. Novation b. Subrogation c. Delegacion d. Expromission

6 A is the owner of shares of stock of ABC Bank amounting to P100,000. Later, A borrowed money from the
bank amounting to P90,000 with interest thereon at 6% per annum. The debt was to be paid in installment.
One of the conditions of the debt contract is that in case of the debtor's default in the payment of any of the
installments as they become due, the entire amount or the unpaid balance thereof will become due and payable
on demand. The defendant A defaulted in the payment of several installments and plaintiff bank brought this
action to recover the unpaid balances. A pleaded compensation. Which is correct?
a. A is allowed to avail of compensation
b. There can be no compensation because A and ABC are not debtors and creditors of each other
c. Compensation is allowed only up to P90,000 plus interest
d. Compensation is allowed only up to P90,000 without interest

7 If a thing is capable of particular designation

a. Generic b. Specific c. Indeterminate d. Indeterminable

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8 A owes B P10,000. A proposed to B that C will pay A's debt and that A will be released from all liabilities.
B and C agreed to the proposal. Later, when B tries to collect from C, he finds out that C is insolvent. It was
proved that at the time of delegacion, C was already insolvent but this was not known to A, neither was the
insolvency of public knowledge. Is A still liable?
a. Yes, because there is delegacion
b. No, because there is delegacion
c. Yes, because the initiative came from A
d. No, because the insolvency was neither of public knowledge nor known to A at the time he delegated his
debt

9 A is obliged to give B, at A's option either object No.1, Object No. 2, or Object No.3.
I. If objects nos. 1 and 2 were destroyed by a fortuitous event and later object No. 3 is destroyed by A's fault,
A would still be liable.
II. If objects Nos. 1 and 2 were destroyed by A's fault and later object No. 3 is lost by a fortuitous event, A
would still be liable.
a. True, true b. True, false c. False, true d. False, false

10 A obliged himself to give B a specific car on June 12, 2023 stipulating that A is liable even if the thing is lost
due to fortuitous event and without the need of a demand. On due date, the car got lost due to fortuitous event.
Which is correct?
a. Obligation is extinguished due to fortuitous event
b. B can compel A to deliver another car
c. B can require another person to deliver a car with expenses chargeable to A
d. Obligation is not extinguished but converted into monetary consideration

11 The substitution or change of an obligation by another, which extinguishes or modifies the first, either changing
its object or principal condition or substituting another in the place of the debtor, or subrogating a third person
in the rights of the creditor
a. Compensation b. Merger c. Prescription d. Novation

12 Where two or more prestations have been agreed upon but only one is due, the obligation is
a. Alternative b. Facultative c. Conjoint d. Solidary

13 Using the preceding number, the right of choice, belongs

a. To the debtor c. To both debtor and creditor
b. To the creditor d. To third person

14 The following are sources of obligations derived from law, except

a. Contracts b. Quasi-contracts c. Delicts d. Quasi-delicts

15 A and B entered into a contract whereby A was to give B P200,000. Later they novated the contract by
stipulating that instead of cash A would give a particular car. Subsequently the car was destroyed by a
fortuitous event. Which is correct?
a. Novation is not allowed because the things due are not of the same kind
b. A is liable to pay P200,000, the amount of the old obligation
c. The original obligation is extinguished but not the obligation to deliver the car
d. The original obligation and the obligation to deliver the car are both extinguished

16 A method of novation caused by the replacement of the old debtor by a new debtor, where the old debtor has
proposed to the creditor and which replacement has been agreed to by said creditor and by said new debtor is
a. Novation b. Delegacion c. Expromission d. Quantum meruit

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17 There is compensation
a. A in his capacity as guardian of B is a creditor of C. C in turn is a creditor of A who owes him a personal
debt.
b. A, debtor of two partners is a creditor of the partnership.
c. A owes B P10,000 payable May 31, 2023. B owes A P10,000 payable on June 30, 2023.
If today is May 31, 2023.
d. A owes B a fountain pen and B owes A also a fountain pen. Both debts are due.
18 Fruits arising out of contracts - like rental payments
a. Natural b. Industrial c. Civil d. Penal

19 A owes B P1,000. B in turn owes A P200. Both debts are already due. Later B assigns the P1,000 credit to C,
without the knowledge of A. The assignment was made on June 3. On June 10, a P250 debt of B in favor of A
matured. A learned of the assignment on July 1. On July 10, a P150 debt of B in favor of A matured. Later C
asks A to pay his debt. How much can C successfully collect from A?
a. P1,000 b. P800 c. P550 d. P400

20 Omission of the diligence which is required by the circumstances of person, place and time

a. Ignorance b. Negligence c. Impotence d. Insanity

21 I. Consent of the parties is required in quasi-contract.

II. The creditor acquires real rights over the thing from the time the obligation to deliver arises
a. True, true b. True, false c. False, true d. False, false

22 The duty to pay taxes and to support one's family are obligations arising from

a. Law b. Contracts c. Quasi-contracts d. Delicts

23 Default on the part of the creditor

a. Mora accipiendi c. Solvendi ex-re
b. Mora solvendi ex persona d. Compensatio morae

24 I. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for
fraud is void
II. If the law or contract does not state the diligence which is to be observed in the performance of an
obligation, that which is expected of a father of a good family shall be required.

a. True, true b. True, false c. False, true d. False, false

25 The expenses of consignation when properly made, shall be charged against the

a. Debtor b. Creditor c. Third person d. Debtor and creditor

26 When the exact amount of damages cannot be ascertained

a. Exemplary b. Liquidated c. Temperate d. Moral

27 The transfer to a third person of all the rights appertaining to the creditor including the right to proceed
against guarantors, or possession of mortgages, subject to any legal provision or modification that may be
agreed upon
a. Novation b. Delegacion c. Expromission d. Subrogation

28 The source of obligations which is a rule of conduct, just and obligatory, promulgated by legitimate authorities
for common good, benefit and observance

a. Contracts b. Quasi-contracts c. Delicts d. Law

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29 Damages awarded to set an example

a. Exemplary b. Liquidated c. Nominal d. Moral

30 The obligation of husband and wife to render mutual help and support arises from
a. Contract b. Law c. Quasi-contract d. Quasi-delict

31 Which of the following is not correct in an obligation to give a specific thing?

a. To preserve or take care of the thing due
b. To deliver the thing itself
c. To deliver the fruits of the thing
d. To deliver the accessions and accessories

32 A was employed as professional driver of B Transit Bus owned by C. In the course of his work, A hit a
concrete post causing serious injury to passenger W and pedestrian Y. The victims sued the driver and the
owner of the bus for damages. Which of the following statements is correct?
a. C is not liable if C can prove that he exercised the diligence of a good father of a family in the selection
and supervision of his employees
b. The conviction of A in a criminal case makes C liable for damages arising from criminal act
c. The liability of C shall cease if the driver A is acquitted in the criminal case
d. The guilt of driver A must be established beyond reasonable doubt to make C liable

33 Whenever in an obligation a period is designated, it is presumed to have been established for the benefit
a. Of both the creditor and debtor c. Of the creditor only
b. Of the debtor only d. Of third persons

34 Damages predetermined beforehand

a. Temperate b. Liquidated c. Actual d. Moral

35 In a joint obligation, joint means any of the following, except

a. Pro-rata c. Proportionate
b. Mancomunada simple d. Individually and collectively

36 Where only one prestation has been agreed upon, but the obligor may render another in substitution, the
obligation is

a. Alternative b. Facultative c. Conjoint d. Solidary

37 I. There is no delay in an obligation not to do something

II. Solutio indebiti and negotiorum gestio are implied contracts
a. True, true b. True, false c. False, true d. False, false
38 A juridical necessity to give, to do or not to do
a. Natural obligation c. Civil obligation
b. Moral obligation d. Social obligation

39 A has in his possession some merchandise to be delivered to the person who presents the proper receipt. B and
C each armed with a receipt, ask A to turn over the property to one of them. An examination of the receipts
reveals that they are exactly of the same kind. A does not know to whom he should deliver the property. So he
files an action in court by means of which B and C will be able to settle their conflicting rights. This is
a. An interpleader c. A garnishment
b. An injunction d. A consignation

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40 If A sells to B a fountain pen, the giving by A to B of the fountain pen is
a. Actual tradition c. Symbolical tradition
b. Constructive delivery d. Traditio longa-manu

41 A borrowed P10,000 from B. The loan was secured by a mortgage of A's land in favor of B. Without the
knowledge of A, C paid the sum of P10,000 for A's debt. A benefited to the amount of P10,000. Which is not
correct?
a. C can recover the whole amount of P10,000 from A
b. If A cannot pay, C cannot foreclose the mortgage inasmuch as C paid without the knowledge of A
c. C may either demand recovery of P10,000 from A or to foreclose the mortgage
d. If C did not pay, the original creditor B has the right to foreclose in case of non-payment by A

42 The act of putting somebody onto the shoes of the creditor enabling him to exercise all the rights and
actions that could have been exercised by the latter.
a. Agency c. Subrogation
b. Partnership d. Novation

43 Which of the following is not correct in an obligation to do?

a. To sue the debtor for specific performance if he refused to voluntarily fulfill the obligation
b. The debtor shoulders the cost of execution should he fail to do so
c. To require that what has been poorly done be undone
d. To require the debtor to pay damages in case of breach

44 A and B are joint debtors of C and D, solidary creditors, to the amount of P1,000. C can demand

a. P1,000 from A or P1,000 from B c. P500 from A or P500 from B

b. P500 from A and P500 from B d. P250 from A and P250 from B

45 If a thing refers to a class, to a genus and cannot be pointed out with particularity.
a. Generic b. Specific c. Determinate d. Indeterminable

46 A owes B P10,000. Later A paid B P7,000 leaving a balance of P3,000. C, a suitor of A and intending
to surprise A, paid B the sum of P10,000 thinking that A still owed B that amount. C did this without
knowledge of A. Which is correct?

a. C can recover P10,000 from A

b. C cannot recover anything from A
c. C can recover P10,000 from B
d. C can recover P3,000 from A

47 Whoever pays for another without the knowledge or against the will of the debtor
a. May demand from the debtor what he has paid
b. May not recover anything from the debtor
c. May recover only insofar as the payment has been beneficial to the debtor
d. May recover from the debtor what he has paid plus damages

48 Spontaneous products of the soil and the offspring and other products of animals
a. Natural b. Industrial c. Civil d. Penal

49 The following are the elements of an obligation, except

a. Vinculum c. Prescription
b. Efficient cause d. Active and passive subjects

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50 A and B solidary debtors of C and D, joint creditors, to the amount of P1,000 - C can demand
a. P1,000 from A or P1,000 from B c. P500 from A and P500 from B
b. P500 from A or P500 from B d. P250 from A and P250 from B

51 Debtor's default in personal obligation

a. Mora accipiendi c. Mora solvendi-ex persona

b. Mora solvendi ex-re d. Compensatio morae

52 I'll give you my car one year after X dies. The obligation is

a. Valid, because death is sure to come.

b. Valid, but the condition will be disregarded
c. Void, then time when death will occur is not certain
d. Void, killing a person is contrary to law

53 Debtor's default in real obligation

a. Mora accipiendi c. Mora solvendi ex-re
b. Mora solvendi ex persona d. Compensatio morae

54 The loss suffered by one person on his property is

a. Damages b. Damage c. Injury d. Depreciation

55 A lawful and voluntary act resulting to a benefit, except

a. Negotiorum gestio b. Solutio indebiti c. Quasi-contract d. Quasi-delict

56 The right of the creditor that is enforceable against a definite debtor is

a. Real right b. Natural right c. Moral right d. Personal right

57 The indemnity which the law gives to the injured party for the breach of a contract is
a. Damages c. Injury
b. Damage d. Loss

58 The following are kinds of fruits of an obligation, except

a. Natural b. Industrial c. Civil d. Penal

59 Damages awarded for mental and physical anguish

a. Moral b. Exemplary c. Nominal d. Temperate

60 A and B are joint debtors of C and D, joint creditors, to the amount of P1,000. C can demand
a. P500 from A or P500 from B
b. P250 from A or P250 from B
c. P500 from A and P500 from B
d. P250 from A and P250 from B

61 The right of the creditor that is enforceable against anybody is, what kind of right?
a. Personal b. Moral c. Natural d. Real

62 Proof of pecuniary loss is necessary for the award of

a. Moral damages c. Exemplary damages
b. Actual damages d. Temperate damages

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63 Synonymous to oblige
I. Creditor II. Active subject III. Debtor IV. Passive subject

c. 1 and 2 c. 2 and 3 c. 1 and 4 c. 3 and 4

64 This is synonymous to solidary obligation

a. Pro-rata c. Proportionate
b. Mancomunada d. Juntos o separadamente

65 A, B, and C are solidary debtors of D in the amount of P3,000 but A was incapacitated to give his
consent as he was a minor. If D sues B, how much will B be liable for?
a. P3,000 b. P2,000 c. P1,000 d. P0

66 Using the preceding number, if D sues A, how much will A be liable for?
a. P3,000 b. P2,000 c. P1,000 d. P0

67 A, B, and C are solidary debtors of D in the amount of P1,000. D remitted the entire obligation when A offered
to pay. A can demand reimbursement from B in the amount of
a. P1,000 b. P500 c. P333 d. P0

68 Which of the following is an obligation with a period for the benefit of the debtor?
a. An obligation payable little by little
b. An obligation payable when the debtor's means permit him to do so
c. An obligation payable within 10 months on demand
d. An obligation payable on or before Dec. 31, 2022

69 The person in whose favor the obligation is constituted

a. Obligor b. Obligee c. Passive subject d. Debtor

70 A, B and C are joint debtors of D for P3,000. If A is insolvent, how much should B pay D?
a. P1,000 b. P1,500 c. P2,000 d. P3,000

71 They give a right of action to compel their performance

a. Civil obligation b. Moral obligation c. Natural obligation d. Social obligation

72 The person who has the duty of giving, doing or not doing

a. Obligee b. Obligor c. Active subject d. Creditor

73 A owes B P100,000 payable on or before June 20, 2023 while B owes A P100,000 payable on or before June
30, 2023 B can set up compensation on June 20, 2023 and this is called
a. Legal c. Judicial or "set off"
b. Partial d. Facultative

74 Synonymous to obligor
I. Creditor II. Active subject III. Debtor IV. Passive subject
a. 1 and 2 b. 1 and 4 c. 2 and 3 d. 3 and 4

75 In tender of payment and consignation, if after consignation is made, the creditor allows the debtor to withdraw
the thing deposited in court, which of the following statements is not correct?
a. Guarantors are released from the obligation unless they consented
b. Sureties are released from the obligation unless they consented
c. The obligation is not extinguished
d. The obligation is extinguished
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76 A owes B P10,000 due on Jan. 7, 2023 and guaranteed by C. B owes A P8,000 due on Jan. 7, 2023.
On the due date, A is insolvent. How much is C's liability?

a. P10,000 b. P8,000 c. P2,000 d. Zero

77 I. Payment made in good faith to any person in possession of the credit shall extinguish the debtors
obligation.
II. When the debtor is guilty of fraud in the fulfillment of an obligation, a creditor can demand payment
of damages and interest in addition to the penalty.

a. True, true b. True, false c. False, true d. False, false

78 I. Solidarity may exist although the debtors and the creditors may not be bound in the same manner and the
same periods and conditions
II. A solidary debtor is always entitled to reimbursement from his co-debtors if he pays for their obligations.

a. True, true b. True, false c. False, true d. False, false

79 I. A solidary creditor cannot assign his rights without the consent of the other creditors.

II. Payment of the debtor's obligation may be made by a third person even without the knowledge and consent
of the debtor.

a. True, true b. True, false c. False, true d. False, false

80 When the debtor of a debtor is ordered not to pay the latter so that preference would be given to the
latter's creditor.
a. Garnishment b. Interpleader c. Injunction d. Attachment

81 A judicial process by virtue of which a person is generally ordered to refrain from doing something
a. Garnishment b. Interpleader c. Injunction d. Attachment

82 Where a property is alienated to the creditor in satisfaction of a debt in money

a. Dation in payment c. Application of payment

b. Payment by cession d. Consignation

83 A borrowed money from B and pledged her ring 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

a. A may compel B to accept her payment

b. A may be allowed to pay B, if B consents
c. A may compel B to accept her payment because the period is deemed for the benefit of A
d. B may refuse A's payment as the period is deemed for the benefit of B

84 Products of the soil through cultivation or intervention of human labor.

a. Natural b. Industrial c. Civil d. Penal

85 A owns a house rented by B. A sold the house to C where C agreed to pay the balance of the purchase price as
soon as B leaves the premises. It was further agreed that C will take care of seeing to it that B vacates the
house. Which is correct?

a. The contract is void because it is potestative on the part of C

b. The contract is void because the consent of B was not obtained
c. The contract is valid because the condition is mixed
d. The contract is valid if B is willing to vacate the premises

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86 I. In delagacion, the insolvency of the new debtor will not revive the original debtor's obligation.
II. In expromission, the insolvency of the new debtor may at times revive the original debtor's obligation
a. True, true b. True, false c. False, true d. False, false

87 I. Condonation or remission is generally gratuitous

II. Proof of actual damages suffered by the creditor is not necessary in order that the penalty in an
obligation with a penal clause may be demanded.
a. True, true b. True, false c. False, true d. False, false

88 I. If the condition is potestative on the part of the debtor, the obligation is void.
II. If the condition is potestative on the part of the creditor, the obligation is valid.
a. True, true b. True, false c. False, True d. False, False

89 A, B and C borrowed P6,000 from D and E, payable in 3 months with A giving in pledge her diamond
ring as security for the amount borrowed. How much can E collect from C?
a. P1,000 b. P2,000 c. P3,000 d. P6,000

90 The creditor is entitled to recover damages and interest in addition to the penalty stipulated
A) When the debtor refuses to pay the penalty
B) When the debtor is guilty of fraud in the fulfillment of the obligation

a. a. True, true b. b. True, false c. c. False, true d. d. False, false

91 A obtained a loan from B bank. The loan was embodied in several promissory notes. As security the
borrower executed a chattel mortgage on his standing crops. Said crops were however subsequently
destroyed by typhoon "Rosing". Is A still liable for the loan despite the destruction of the crops by a
fortuitous event?

1st answer : Yes, the obligation of A was to deliver a generic thing - money.
2nd answer : No, the obligation was to deliver determinate things - the standing crops.

a. True, true b. True, false c. False, true d. False, false

92 I. When the fulfillment of the suspensive or resolutory condition depends upon the sole will of the debtor,
the conditional obligation shall be void.

II. If the debt produces interest, payment of the interest shall not be deemed to have been made until the
principal have been covered or paid.
a. True, true b. True, false c. False, true d. False, false

93 I. An example of an obligation with a period is when A promises to pay B P10,000 one month from the
death of C.

II. A person is obliged to deliver a determinate thing including its accessories and accessions provided they
have been mentioned in the agreement.
a. True, true b. True, false c. False, true d. False, false

94 I. Obligations with a resolutory period take effect at once, but terminate upon arrival of the day certain.
II. Obligations with a resolutory condition take effect at once, but terminate upon happening of the
condition.
a. True, true b. True, false c. False, true d. False, false

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95 A executes in favor of B a promissory note for P1,000,000 payable after two years, secured by a mortgage on a
building valued at P2,000,000. One year after the execution of the note, the mortgaged building was totally
burned. Can B demand from A the payment of the value of the note?

a. Yes, if A is willing to pay B

b. No, if A refuses to pay B
c. Yes, even if A gives another security which is equally satisfactory
d. Yes, unless A gives another security which is equally satisfactory

96 This is an obligation with a resolutory condition

a. I'll give you P10,000 if you pass the 2023 CPA board examination
b. I'll give you my car now, but should you fail in any of your subjects, your ownership will cease and it will
be mine again
c. I'll give you P10,000 on December 31, 2022
d. I'll give you P10,000 if A dies of TB

97 This is not necessary in order that compensation may prosper

a. That the two debts are both due

b. That the two debts be liquidated and demandable
c. That there be a retention or controversy commenced by third persons and communicated in due time to
the debtor
d. d. Both debts consists in a sum of money, or if the things due are consumable, they be of the same

98 I ."We promise to pay" when there are two or more-signatures = joint liability
II. "I promise to pay" when there are two or more signatures = solidary liability

a. True, true b. True, false c. False, true d. False, false

99 Where a debtor transfers all his properties not subject to execution in favor of his creditors so that the latter
may sell them and thus apply the proceeds to their credits.

a. Dation in payment
b. Cession
c. Application of payment
d. Consignation

100 A obliged himself to pay B P100,000 in 30 days plus a penalty of P10,000 if A fails to pay the obligation in due
time. A failed to pay the obligation in 30 days, B can demand from A

a. The principal of P100,000 plus P10,000 penalty

b. The principal of P100,000 plus P10,000 penalty plus legal interest
c. The principal Of P100,000 plus P10,000 penalty, plus legal interest, plus damages
d. The principal of P100,000 plus legal interest, plus damages

END

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