Kingfisher School of Business and Finance

Law 5 (Law) - Obligations and Contracts

2nd Semester A.Y. 2016-2017
MULTIPLE CHOICE:
1. To pay money, is a kind of;
a. Personal obligation
b. Real obligation

c. Moral obligation
d. Civil obligation

2. A. Day certain is a future event, which may or may not come.

B. If Mr. Ming promised to pay when he has the money available, his obligation is one with the period or term.
a. Only A is true
c. Both are true
b. Only B is true
d. Both are false
3. It takes place when two persons, in their own right, are creditors and debtors of each other.
a. Condonation
c. Compensation
b. Remission
d. Confusion
4. In this kind of contractual obligation, e.g. sale, neither party incurs in delay if the other does not or is nor ready to
comply with what is incumbent upon him.
a. Pure
c. Reciprocal
b. One with a period
d. Indivisible
5. Grand Dad authorized his grandson to use the new car until he finishes his schooling in college. The obligation
contains;
a. Positive condition
c. Resolutory condition
b. Suspensive condition
d. None of the above
6. The above kind of conditional obligation is demandable;
a. At once
c. Upon the arrival of the period
b. When the event happens
d. None of the above
(when he finishes school)
7. A contractor undertook to erect a 10-storey building for Ph80,000,000 until June 30 th 2009. Due to several
unexpected inclement weather, sadden shortage of cement and other construction materials and without his fault, the
construction was only finished on the agreed date up to the 7 th floor. Can his obligation be extinguished?
a. No, because the contract must be complied with in good faith as it is the law between them.
b. No, because he is already in delay.
c. Yes, because of fortuitous events.
d. Yes, due to substantial compliance in good faith
8. Fitch agreed to give his cellphone to Gabs that is when his cat dies. The obligation is deemed;
a. Conditional
c. one with a day certain
b. One with a term of period
d. b and c are correct
e. none of the above
9. Which statement is correct?
a. contract is the result of an obligation
b. obligation is the result of a contract
c. all agreements are contracts
d. whenever there is an obligation, there is a contract
10. Fay is indebted to Crish in the sum of Php 10,000. Since he is short of cash, he offered to give his
wristwatch to the creditor who accepted the offer. This is known as;
a. Subrogation
c. Dacion en pago
b. Cession
d. None of the above
11. Yeng lent Php. 10,000.00 to Ditto for his tuition fee for the current school year. The obligation is
considereda. one with a period
c. pure (because payment is demandable at once)
b. facultative (because it is a single prestation)
d. personal obligation
12. Sky is leaving for abroad permanently and offered to sell her 3 cars (Toyota, Honda and Nissan).
Bayer promised to buy any one of them, the obligation of Sky is considereda. Pure
c. Facultative
b. Alternative
d. Indivisible
13. Ordinances that prohibits smoking and jaywalking are deemed-

a. Civil obligations
b.Contractual obligations
14. Similarly, these are examples of aa. Real obligation
b. Personal positive obligation

c. Natural obligations
d. Moral Obligations
c. Negative personal obligation
d. All of them

15. Boggy owes Wano Php. 10,000.00. After several promises to pay, the debtor has yet to make good
such promise to pay. Later, he offered to pay Php. 4,000.00 only. Out of frustration, Wano accepted the payment. Is the
indebtedness extinguished?
a. No, because there is still a balance.
b. No, because of solution indebiti.
c. Yes, because the creditor accepted such incomplete payment without protest.
d. Yes, because of condonation.
16. The general principle that the contracting parties may established such stipulations, clauses, terms
conditions as they may deem convenient in the premises.
a. Principle of mutuality
c. Autonomy of contracts
b. Principle of relativity
d. None of the above

and

17. A. A red Toyota car (model 2008) is an indeterminate thing.

B. If Mr.Ming promised to pay when he has the money available, his obligation is one with a period
a. Only A is true
c. Both are true
b. Only B is true
d. Both are false

or term.

18. The clothing shop undertook to tailor a special graduation gown for Melo in time for his valedictory address on the 15 th
May 2009. Since there were occasional brownouts, the shop failed to finish the gown on this date. Will the debtor be liable
for delay?
a. No, because there is yet no demand for delivery
b. No, due to fortuitous event (manpower shortage)
c. Yes, because of their stipulation
d. Yes, because time is controlling motive for establishment of the contract
19. In a contract of sale, the buyer must pay the purchase price in order to extinguish his obligation. Insofar as the seller is
concerned, his obligation may be extinguished my means of
a. Payment
c. Performance
b. Delivery
d. All of the above
20. An obligation arising from the meeting of minds of parties.
a. Natural Obligation
c. Contractual Obligation
b. Civil Obligation
d. Quasi-contract
21. Dodee will sell his condominium unit to Jawo for Php. 5 Miliion on June 16 th 2009. It is earning rental payments in the
meantime. If, however, Dee delivered the property on September 2009, when will Jay be entitled to the fruits of the unit, if
any?
a. From the time that they agreed upon
b. From the time the obligation to deliver has come (or the rentals beginning June 15 th)
c. From the time of delivery (in September 2009)
d. None of the above
22. What kind of right was acquired by Jawo on the 15th June?
a. Real right
c. Both of them
b. Personal right
d. Legal right
23. As regards the right of Jawo acquired at the time of delivery, it is considered a
a. Real right
c. Both of them
b. Personal right
d. Legal right
24. In an obligation (with suspensive condition) and the thing obliged to be given is improved by its
time, the improvement shall belong to
a. Creditor
c. Both of them
b. Debtor
d. It depends on their agreement

nature, or by the

25. Donnie bought 50 bottles of imported wines for Php. 100,000.00 that was to be delivered on the 31 st
Since the seller failed to deliver on tome, he is therefore liable for damages due to his
a. Delay or default
c. Contravention of the terms of the obligation
b. Negligence
d. None of the above

December 2008.

26. Ordinances that prohibits smoking and jaywalking are deemed

a. Civil obligations
c. Natural obligations
b. Contractual obligations
d. Moral obligations
27. A contract that contains a stipulation in favor of a third person, who communicated his acceptance to the obligor before
its revocation, is called
a. Insurance contract
c. Stipulation pour autrui
b. Aleatory contract
d. None of the above
28. Real contracts such as deposit, pledge and commodatum, are perfected upon
a. Consent
c. Both of them
b. Delivery of the object
d. Demand
29. When one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and grave evil
upon his person or property, or upon the person or property of his spouse, descendants or ascendants, to give his consent.
There is
a. Violence
c. Undue influence
b. Intimidation
d. Fraud
30. A seller offered to sell his other cellphone for Php.10,000.00 to his friend. The latter agreed to buy but asked for
discounted price. There is
a. A perfected contract of sale
c. Counter offer by the buyer e. Both c and d
b. Consent to buy from the buyer
d. Qualified acceptance
31. Nelson (who is 30 years of age) sold his car to Raine for Php.500,000.00 the buyer is however only 17 years, 11months
and 29 days old. The contract of sale is
a. Valid and perfected
c. Voidable
e. None of the above
b. Rescissible
d. Both a and c
32. From the moment of the meeting of minds, the parties are bound not only to the fulfillment of what has been expressly
stipulated but also to all the consequences which, according to their nature may be in keeping with good faith, usage and
law. This is the principle of
a. Consensuality
c. Mutuality
b. Good faith
d. Both a and b
33. A special promise to answer for the debt, default or miscarriage of another must be in writing to be
a. Valid
c. Paid
b. Enforceable
d. None of the above
34. A contract entered into in the name of another by one who has no authority or legal representation or who has acted
beyond his powers, shall be
a. Unenforceabl e
c. Rescissible
b. Voidable
d. Void
35. Failure to disclose facts when there is duty to reveal them, as when the parties are bound by confidential relations,
constitutes
a. Fraud
c. Both of them
b. Mistake
d. Only b is correct
36. In contracts of pure beneficence, the cause or consideration is
a. Merely liberality of the benefactor
c. Payment
b. Services rendered
d. None of the above
37. In this kind of contract, the cause is understood to be, for each contracting party, the prestation or promise of a thing or
service by the other
a. Onerous contract
c. Contracts of pure beneficence
b. Remuneratory
d. All of them
38. This kind of contract cannot be ratified. Neither can the right to set up the defense of illegality be waived
a. Voidable
c. Rescissible
b. Void
d. Unenforceable
39. Contracts whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy.
a. Voidable
c. Rescissable
b. Void
d. Unenforceable

40. This creates the obligation to return the things which were the object of the contract, together with their fruits, and the
price with its interest, provided that he who demands it can return whatever he may be obliged to restore.
a. Rescission
c. Fulfillment
b. Annulment
d. Payment
41. These vitiate consent
a. State of drunkenness
c. Mistake, fraud, violence, intimidation
b. Consent given during a hypnotic spell d. All of them
e. Only c is correct
42. An absolutely simulated or fictitious contract is
a. Void
c. Both of them
b. Inexistent
d. None of the above
43. When one of the contracting parties dies, his property or assets will immediately go to the
a. Heirs
c. Assigns
b. Estate
d. Creditors
44. In order that it may make a contract voidable, it should be seriousthat is in reference to
a. Fraud
c. Both of them
b. Mistake
d. Only b is correct
45. When through insidious words or machinations of one of the contracting parties, the other is induced to enter into a
contract which without them he would not have agreed to. This is
a. Violence
c. Undue influence
b. Intimidation
d. Fraud
46. Beth and Buddyboth minorsagreed to buy and sell gold watch of the former. The contract of sale is
a. Voidable because of minority
c. Unenforceable
b. Void because of lack of consent
d. Rescissible
47. It becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance is sent
and conveyed to the other.
a. Acceptance
c. Consent
b. Offer
d. None of the above
48. As a general rule, one of the enumeration is not a requisite for the existence of a valid contract
a. Consent of the contracting parties
b. Object certain which is the subject matter of the contract
c. Cause of the obligation which is established
d. Delivery
49. Under their contract of employment, Angela was being paid a daily wage well above the Minimum Wage Law because
of the current economic crisis; the employer decided to reduce her pay but still complied with the law. Can the employee
complain against the employer?
a. No, because of fortuitous event (financial losses)
b. No, because anyway the law was not violated
c. Yes, unless the losses are clearly proven
d. Yes, because the minimum wage law was violated
50. SUPPOSING that in the foregoing problem, the employee, under their written contract of employment agreed to receive
less pay that that allowed by law because of lack of work, can he still complain lateron?
a. No, it is better to have work and no work at all
b. No, because the contract is the law between them
c. Yes, because of solution indebit (wrong payment)
d. Yes, because the minimum wage law was violated