LAW ON OBLIGATIONS AND CONTRACTS – PRE FINAL EXAMINATION

I. True of False
1. Novation is the extinction of an obligation through the creation of a new one which substitutes the old
one.
2. The nullity of the penal clause carries with it that with the principal obligation.
3. Prescription is the extinguishment of an obligation by the passage of time.
4. In order that a creditor can demand penalty in an obligation with a penal clause, it is necessary that he
shall show proof of actual damages suffered by him.
5. The delivery to and acceptance by the creditor of a certified cashier’s check produces payment of the
debtor’s obligation.
6. Payment of the debtor’s obligation may be made by a third person even without the knowledge and
consent of the debtor.
7. Payment by one who does not have the free disposal of the thing due and capacity to alienate it is not
valid.
8. Payment to an incapacitated creditor is not valid, except when he has kept the thing delivered, or
insofar as the payment has been beneficial to him.
9. The payment of debts in money shall be made in the currency stipulated, and if it is not possible to
deliver such currency, then in the currency which is legal tender I the Philippines.
10. The creditor is not compelled to accept payment in check or other negotiable instruments.
11. In joint obligation, if one of the debtors is insolvent, the others shall not be liable for the payment of
his share.
12. A solidary creditor cannot assign his rights without the consent of the others.
13. In case of an extraordinary inflation or deflation of the currency stipulated should supervene, the value
of the currency at the time of the maturity of the obligation shall be the basis of payment.
14. 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.
15. Ten sacks of corn cannot be compensated legally by ten sacks of rice.
16. In delegation, the insolvency of the new debtor will never revive the original debtor’s obligation.
17. If an obligation states that debtors bind themselves jointly and severally, the obligation is considered
jointly.
18. Solidarity may exist although the creditors and the debtors may not be bound in the same manner and
by the same period and conditions.
19. The nullity of the principal obligation does not carry wit it that of the penal clause.
20. Condonation or remission is generally gratuitous.
21. Obligation may be modified by substituting the person of the debtor.
22. Delegacion takes place when the creditor accepts a third person to take the place of the debtor at the
instance of the latter.
23. In order for the compensation to be proper there must be two debts which are due.
24. Confusion or merger is the meeting in one person the qualities of creditor and debtor with respect to
the same obligation.
25. Divisible obligation is one which is capable of partial performance.
26. As a genera rule, obligation is always joint
27. Payment by one of the solidary debtors extinguishes the obligation
28. In solidary obligation, demand by one debtor is a demand by all of them.
29. Dation in payment is the conveyance of the ownership of a thing as an accepted equivalent of
performance.
30. Cession in payment is an assignment or abandonment of tall the properties of the debtor for the
benefits of his creditors in order that the latter may sell the same and apply the proceeds thereof to
the satisfaction of the credits.
II. Identification
1. A is indebted to B for P20,000. X is the guarantor of A. B is also indebted to A for P8,000. How much
will X be liable as guarantor if B sues A, and A cannot pay? _____________________________
2. Change of persons or objects. _________________________
3. The delivery and transmission of ownership of thing by the debtor to the creditor as an accepted
equivalent of the performance of the obligation is called___________________________
4. The extinguishment of the obligation when two persons, in their own rights are debtors and creditors
of each other is called ________________________
5. The meeting in one person of the qualities of creditor and debtor with respect to the same obligation is
called ______________________
6. Obligation which is susceptible to partial performance based on the purpose of the obligation
__________________
7. Assignment of abandonment of all the properties of the debtor for the benefit of his creditors in order
that the latter may sell the same and apply the proceeds thereof to the satisfaction of his credits
____________.
8. Means not only the delivery of money but also the performance of an obligation _______________
9. An obligation which is not capable of partial performance. _______________________
10. An accessory undertaking to assume greater responsibility in case of breach. ____________________
11. Currency which a debtor can compel a creditor to accept payment of a debt in money when tendered
by the debtor in the right amount.______________________
12. Is the sharp sudden increase in value of money or credit or both without a corresponding increase in
business transactions. ________________________
13. It is ac act of depositing the thing or amount due with the proper court when the creditor does not
desire or cannot receive it after complying with the formalities required by
law.__________________________
14. An act on the part of the debtor, of offering to the creditor the thing due or amount
due________________.
15. It is the gratuitous abandonment by the creditor of his right.___________________________

Good luck! Ma’am Mayette

III. Identification
1. A is indebted to B for P20,000. X is the guarantor of A. B is also indebted to A for P8,000. How much will X be
liable as guarantor if B sues A, and A cannot pay? _____________________________
2. Change of persons or objects. _________________________
3. The delivery and transmission of ownership of thing by the debtor to the creditor as an accepted equivalent of
the performance of the obligation is called___________________________
4. The extinguishment of the obligation when two persons, in their own rights are debtors and creditors of each
other is called ________________________
5. The meeting in one person of the qualities of creditor and debtor with respect to the same obligation is called
______________________
6. Obligation which is susceptible to partial performance based on the purpose of the obligation
__________________
7. Assignment of abandonment of all the properties of the debtor for the benefit of his creditors in order that the
latter may sell the same and apply the proceeds thereof to the satisfaction of his credits ____________.
8. Means not only the delivery of money but also the performance of an obligation _______________
9. An obligation which is not capable of partial performance. _______________________
10. An accessory undertaking to assume greater responsibility in case of breach. ____________________
11. Currency which a debtor can compel a creditor to accept payment of a debt in money when tendered by the
debtor in the right amount.______________________
12. Is the sharp sudden increase in value of money or credit or both without a corresponding increase in business
transactions. ________________________
13. It is ac act of depositing the thing or amount due with the proper court when the creditor does not desire or
cannot receive it after complying with the formalities required by law.__________________________
14. An act on the part of the debtor, of offering to the creditor the thing due or amount due________________.
15. It is the gratuitous abandonment by the creditor of his right.___________________________

Good luck! Ma’am Mayette