This document contains 38 multiple choice questions about obligations and contracts law. The questions cover topics such as sources of obligations, different types of conditions in contracts, modes of extinguishing obligations like compensation, and characteristics of different kinds of contracts.

1. Raymond Atanacio OBLIGATIONS AND CONTRACTS
MultipleChoiceQuestions in Obligationsand Contracts
1. It is the juridical relation resultingfromlawful,voluntary,and unilateral acts by virtueof which the parties
become bound to each other to the end that no one shall beunjustly enriched or benefited atthe
expense of another.
a. Agreement
b. Vinculumjuris
c. Contracts
d. Quasi-Contracts
2. This takes placewhen something is received when there is no rightto demand it, and itwas unduly
delivered thru mistake.
a. Solutio Indebiti
b. Negotiorum Gestio
c. Vinculumjuris
d. Prestation
3. This happened when the creditor make a demand and the obligor failsto deliver the thing.
a. Negligence
b. Mora solvendi
c. Mora accipiendi
d. Compensatio morae
4. Demand is not necessary to incur delay when:
a. Creditor refuses the performance without justcause.
b. The debtor is guilty of non-performance.
c. Time is the controlling motive
d. If the obligation bears interest
5. In what instancemay we consider thatthere is no delay?
a. In civil obligations
b. In positiveobligation
c. In obligation arisingfromcrime
d. In natural obligation
6. In Accion subrogatoria the creditor may exerciseall of the rights and bringall of the actions which the
debtor may have againstthird persons if:
a. If the accountis personal
b. The debtor's acts are fraudulent
c. The debtor has performed an act subsequent to the contract,givingadvantage to other persons
d. Creditor must have the right of return against debtor
7. In Accion Pauliana Rescission,which involves theright of the creditor to attack or impugn by means of
rescissory action any actof the debtor which is in fraud and to the prejudiceof his rights as creditor
provided:

2. a. The debt is due and demandable
b. There is a failureof the debtor to collecthis own debt from 3rd persons either through maliceor
negligence
c. The debtor's assets areinsufficient
d. The debtor has performed an act subsequent to the contract, giving advantage to other
persons
8. It causes the extinguishment or loss of rights already acquired upon the fulfillmentof the condition,that
is,the happeningof the event which constitutes the condition.In other words, the fulfillmentof which
will extinguish an obligation (or right) already existing.
a. Condition subsequent
b. Suspensive
c. facultativecondition
d. positivecondition
9. When the thing deteriorates with the debtor’s fault, the creditor may chooseone of the following:
a. Mutual restitution
b. Rescission (cancellation) of the obligation with indemnity for
damages
c. Suffer the deterioration of the thing
d. Institute an action for negligence.
10. It is a future and certain event upon the arrival of which the obligation (or right) subjectto iteither arises
or is terminated.
a. Fortuitous events
b. Condition
c. Period
d. Date and time
11. Anna Marieowes Reah P5,000 payablein one year, at10% interest per annum. On maturity, Anna Mariepays
Reah P5,000 which Reah acknowledged havingreceived without mentioning the payment of interest. Which best
describes what happened to the interest?
a. There is a rebuttable presumption that Interest has been paid.
b. Interest has already been paid.
c. Interest will soon followafter payment of the principal
d. None of the above.
12. A period designated in the obligation is presumed established for the benefit of:
a. both the debtor and the creditor
b. benefit of the creditor only
c. benefit of the debtor only
d. none of the above.

3. 13. An obligation thefulfillmentof which is not subjectto a condition but immediately demandable:
a. Conditional obligation
b. obligation with a period
c. Pure obligation
d. None of the above
14. Which DOES NOT correctly complete the sentence? An obligation is a juridical necessity
a. to give
b. to do
c. not to give
d. not to do
15. The obligation where only one party is bound is called
a. unilateral
b. bilateral
c. real
d. personal
16. Duringthe pendency of the suspensive condition in an obligation to give, if the thing deteriorates through the
faultof the debtor
a. the obligation shall beextinguished
b. the debtor shall beobliged to pay damages
c. the impairment shall beborne by the creditor
d. the creditor may choosebetween rescission and fulfillment,with indemnity in either case
17. Which of the followingis NOTa sourceof obligation?
a. Law
b. Contracts
c. Quasi-Contracts
d. None of the above
18. Statement I – A person alternatively bound by different prestations shall completely perform one of them.
Statement II – The creditor can be compelled to receive partof one and partof the other undertaking.
Which of the followingis correct?
a. Only Statement I is correct
b. Only Statement II is correct.
c. Both statements are correct.
d. None of the statements is correct.

4. 19. "A sells to B his lotand house in the city if A decides to transfer and livein the countryside"is an example of:
A. Mixed Condition
B. Potestative Condition
C. Casual Condition
D. Resolutory Condition
20. When a third person assumes the payment of the obligation even without the knowledge and consent of the
debtor but with the consent of thecreditor
a. There is delegation if debtor is released
b. There is subrogation
c. There is novation
d. There is expromission if debtor is released
21. Which of the followingstatements is false?
a. An obligation to pay a certain amount in ten annual installments is divisible.
b. Execution of a certain number of days of work shall bedivisible.
c. Obligationsto give definite things and those that are not susceptibleof partial
performance shall bedeemed divisible.
d. Accomplishment of work by metrical units aredivisible
22. Three of the followingcontracts arevoid.Which one is not?
A Oral contractof partnership where real estate is contributed as capital

5. B Agent's authority to sell land is given orally.
C
Oral contractof partnership of three partners and capital contribution ismorethan P3,000 in
cash
D Written contractcontemplating impossibleservices
23. It is a mode of extinguishingan obligation when two persons in their own right arecreditors of each other.
A Confusion
B Compensation
C Reformation
D Novation
24. Which of the followingis notan element of legal compensation?
A There is controversy or adverseclaimover any debts to be compensated
B There are two or more debts of the samekind
C Debts to be compensated are due and demandable
D There are two or more persons who are creditor or debtors of each other.
25. Contracts which cannot be sued upon unless ratified,thus it is as if they have no effect yet are
A Voidable
B Unenforceable
C Rescissible
D Void
26. When the debtor binds himself to pay when his means permit him to do so,the obligation is:
A Pure
B Conditional
C Simple
D With a Period
27. If the obligor binds himself to perform his obligation assoon as "heshall haveobtained a loan"from a certain
bank, this obligation is:

6. A Resolutory
B Conditional
C With a Term
D Suspensive
28. A contractis in the stage of conception when:
A The parties come to an agreement.
B There is meeting of the minds.
C Negotiations are in progress.
D The contractis perfected.
29. A defective contractwhere damage or lesion is essential
A Void
B Rescissible
C Unenforceable
D Voidable
30. This contractis without effect unless ratified:
A Donation between husband and wife
B Contract of salebetween two insanepersons
C Marriagebetween firstdegree cousins
D Contract of salebetween husband and wife
31. Rescission of contractcan take placein this case
A When the seller cannotreturn the installments paid to him by the buyer
B When the party seeking resolution can perform only as to part and as to remainder
C When the thing which is the object of the contract is legally in thepossession of a third person
who acted in bad faith
D When he who demands rescission can return whatever he may be obliged to restore
32. Through insidiouswords or machinations,Awas able to induceB to enter into a contractwhich without them
B would not have agreed to it. There is

7. A Undue Influence
B Mistake
C Fraud
D Misrepresentation
33. An instrument may be reformed
A When the real agreement is void
B Simple donations inter vivos wherein no condition is imposed
C Wills
D When the instrument does not express the true intention of the parties due to mistake
34. If the obligation of the debtor is "I will pay you my debt after I have arrived from abroad,"this is
A Conditional
B Void
C With a Period
D Unenforceable
35. When the characters of the creditor and the debtor are merged in one and the same person, there is
extinguishment of the obligation by
A Compensation
B Remission
C Novation
D Merger of Rights
36. Which of the followingcontracts is notvoid ab initio?
A That which contemplates an impossibleservice
B That which is undertaken in fraud of creditors
C Those whose object is outsidethe commerce of men
D That whose object did not exist at the time of transaction

8. 37. Contracts entered into in a state of drunkenness or duringa hypnotic spell are:
A Valid
B Legal
C Voidable
D Void
38. Delay in the givingor deliveringof a thing
A Mora accipiendeex re
B Mora accipiendeex persona
C Mora solvendi ex persona
D Mora solvendi ex re