The document contains 20 multiple choice questions testing knowledge of obligations and contracts law. It covers various topics like types of obligations, modes of extinguishing obligations, conditional and potestative contracts, and elements of legal compensation. Understanding obligations and contracts law is important as it governs the terms and conditions agreed upon by parties to a contract, helping to avoid disputes and achieve order between contractual parties. Even in simple everyday transactions, people unconsciously apply basic legal principles of obligations and contracts through their actions and interactions, showing how the law is integrated into various activities and dealings.

1. OBLICON MCQ
1. When the debtor binds himself to pay when his means
permit him to do so, the obligation is:
a. Conditional
b. Pure
c. Simple
d. With a Period
ANSWER: D
2. Contracts which cannot be sued upon unless ratified,
thus it is as if they have no effect yet are:
a. Voidable
b. Rescissible
c. Void
d. Unenforceable
ANSWER: D
3. If the obligation of the debtor is "I will pay you my debt
after I have arrived from abroad," this is
a. Unenforceable
b. With a Period
c. Void
d. Conditional
ANSWER: D
4. 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. Merger of Rights
c. Novation
d. Remission
ANSWER: B
5. Through insidious words or machinations, A was able to
induce B to enter into a contract which without them B
would not have agreed to it. There is:
a. Undue Influence
b. Fraud
c. Mistake
d. Misrepresentation
ANSWER: B
6. "A sells to B his lot and house in the city if A decides to
transfer and live in the countryside" is an example of:
a. Mixed Condition
b. Potestative Condition
c. Casual Condition
d. Resolutory Condition
ANSWER: B
7. It is a mode of extinguishing an obligation when two
persons in their own right are creditors of each other.
a. Confusion
b. Reformation
c. Compensation
d. Novation
ANSWER: C
8. A contract is in the stage of conception when:
a. There is meeting of the minds.
b. Negotiations are in progress.
c. The parties come to an agreement.
d. The contract is perfected.
ANSWER: B

2. 9. If the obligor binds himself to perform his obligation as
soon as "he shall have obtained a loan" from a certain
bank, this obligation is:
a. With a Term
b. Conditional
c. Suspensive
d. Resolutory
ANSWER: B
10. Contracts entered into in a state of drunkenness or
during a hypnotic spell are:
a. Void
b. Valid
c. Voidable
d. Legal
ANSWER: C
11. Delay in the giving or delivering of a thing
a. Mora solvendi ex re
b. Mora solvendi ex persona
c. Mora accipiende ex re
d. Mora accipiende ex persona
ANSWER: A
12. Which of the following statements is false?
a. Obligations to give definite things and those that are not
susceptible of partial performance shall be deemed divisible.
b. Execution of a certain number of days of work shall be
divisible.
c. Accomplishment of work by metrical units are divisible
d. An obligation to pay a certain amount in ten annual
installments is divisible.
ANSWER: A
13. This contract is without effect unless ratified:
a. Marriage between first degree cousins
b. Contract of sale between two insane persons
c. Contract of sale between husband and wife
d. Donation between husband and wife
ANSWER: B
14. Which of the following contracts is not void ab initio?
a. Those whose object is outside the commerce of men
b. That whose object did not exist at the time of transaction
c. That which contemplates an impossible service
d. That which is undertaken in fraud of creditors
ANSWER: D
15. Rescission of contract can take place in this case
a. When the thing which is the object of the contract is legally
in the possession of a third person who acted in bad faith
b. When he who demands rescission can return whatever he
may be obliged to restore
c. When the party seeking resolution can perform only as to
part and as to remainder
d. When the seller cannot return the installments paid to him
by the buyer
ANSWER: B
16. A defective contract where damage or lesion is essential
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
ANSWER: A
17. An instrument may be reformed d
a. Simple donations inter vivos wherein no condition is
imposed
b. Wills

3. c. When the instrument does not express the true intention of
the parties due to mistake
d. When the real agreement is void
ANSWER: C
18. Three of the following contracts are void. Which one is
not?
a. Oral contract of partnership of three partners and capital
contribution is more than P3,000 in cash
b. Written contract contemplating impossible services
c. Oral contract of partnership where real estate is contributed
as capital
d. Agent's authority to sell land is given orally.
ANSWER: A
19. When a third person assumes the payment of the
obligation even without the knowledge and consent of the
debtor but with the consent of the creditor
a. There is novation
b. There is delegation if debtor is released
c. There is subrogation
d. There is expromission if debtor is released
ANSWER: D
20. Which of the following is not an element of legal
compensation?
a. Debts to be compensated are due and demandable
b. There is controversy or adverse claim over any debts to be
compensated
c. There are two or more debts of the same kind
d. There are two or more persons who are creditor or debtors
of each other.
ANSWER: B
Question: Why is it important that obligation in
contractsbe faithfully fulfiiled??
Answer: Laws are enacted to have order (or require the
performance of a particular action to achieve the same) Since
the terms and conditions of a contract are considered the
governing laws between parties, it is necessary to faithfully
fulfill one's obligation, that is, to avoid the occurrence of
dispute. Hence, why do we have to fulfill our obligations, that is
to achieving order between the parties to the contract.
Question: How do you apply the laws on obligations and
contracts to everyday activities and business dealings?
Answer: We apply laws on obligations and contracts
unconsciously to our daily activities. One will not notice that in
performing a simple common task you have applied several
principles on obligations and contracts. Like, for example,
buying a piece of pandesal, the buyer will offer to buy and the
seller will accept. At this point, once the seller and buyer agrees
to the object and price, and their minds have met; each of
them will not just rescind or refuse to comply. Even without
knowledge of law, one will not just back out from the perfected
sale.
Then, after the perfection of the contract of sell; unknowingly,
they will go on to consummate the same. The buyer will hand
the money and the seller, in return, will hand over the pandesal.
A clear example of reciprocal obligations, isn't?
If the money given is more than the price of the pandesal, the
seller will give the change. That is because he knows no one
should be enriched at the expense of another; hence, he has
the obligation to return what is not due him. Likewise, if what
was delivered to the buyer is more than what he paid for, he
will return the same under the same principle, creating an
implied obligation to return.
In a simple, but very common, transaction, the parties are not
aware that they are applying the basic principles of law on
obligations and contracts. They might not be well versed, or
even, have not had any formal education, yet they apply these
simple principles of law unconsciously. Thus, If you ask: how we
apply laws on obligations and contracts on our daily activities,
we apply it unknowingly, but instinctively, depending on one's
value.