Deck 9: Obligation Scenarios in Civil Law

Question 1

Santos owes Maria ₱5 million. The debt is secured by a mortgaged on the house of Santos.No. 1 - If before the due date, the security is lost through no one's fault, Maria can declare the debt due and demandable even before the original maturity date.No. 2 - If the house was burned up to 25% its value through the fault of Santos, the debt may be declared due by Maria even before the original maturity date but she cannot do so if the impairment was without the fault of Santos.

A)Both are correct.
B)No. 1 is correct. No. 2 is wrong.
C)No. 1 is wrong. No. 2 is correct.
D)Both are wrong.

Answer 1

Both are correct.

Question 2

Alonzo offered to sell to Bernardo a parcel of land at a specified price. Alonzo gave Bernardo (60) days within which to accept the offer. Bernardo agreed to the period.

A)Before the lapse of sixty days, Alonzo may withdraw the offer or increase the price.
B)Before the lapse of sixty days no withdrawal can be made but the price may be increased.
C)No withdrawal can be made before sixty days because the period is binding.
D)No withdrawal can be made because there is already a perfected option contract.

Answer 2

Before the lapse of sixty days, Alonzo may withdraw the offer or increase the price.

Question 3

Jose is under obligation to deliver to Pedro, at the option of Jose, a car, a pick-up truck, or a van, all of which are specific.No. 1 - If the car and the pick-up truck were lost through Jose's fault, he has no choice but to deliver the van; If the van was lost through a fortuitous event before delivery, the obligation is extinguished and Jose is not liable.No. 2 - If the pick-up truck and the car were lost through a fortuitous event, Jose has no choice but to deliver the van; if before delivery, the van was lost because of Jose's fault, he is liable.

A)Both Nos. are true.
B)No. 1 is false. No. 2 is true.
C)Both Nos. are false.
D)No. 2 is true. No. 1 is false.

Answer 3

Both Nos. are true.

Question 4

In case of losses, the industrial partner shall,

A)Share in the losses in any event.
B)Shall share in the losses only if there is a stipulation.
C)Shall not share in the losses even if he contributes capital.
D)Shall not share in the losses except if he contributes capital also.

Question 5

Every contract of partnership having a capital of three thousand pesos or more, in money or property, shall appear in a public instrument, which must be recorded in the Office of the Securities and Exchange commission. Failure to comply with this requirement;

A)Renders the contract of partnership void.
B)Renders the contract of partnership unenforceable.
C)Affects the liability of the partnership to third persons and the partnership has no legal personality.
D)Does not affect the liability of the partnership to third persons and the partnership still has a legal personality.

Question 6

A and B are partners in A & B Partnership. A owns two parcels of land which he contributed to the partnership. B owns six trucks which he contributed to the partnership. The profits of the land and the trucks were also included as contributions. The properties contributed are all what A and B own. The partnership is:

A)Universal
B)Universal partnership of all present property
C)Universal partnership of all profits
D)Particular partnership

Question 7

X, Y, and Z are partners in XYZ Partnership, Ltd. Y as limited partner. After five years of operations, the partnership incurred debts in favor of third persons totaling ₱5 million. The total partnership assets is ₱3 million. Who among the partners shall be liable with their separate property in favor of creditors?

A)X and Z for ₱1.5 million each because they are general partners
B)X, Y and Z for ₱1 million each
C)X, Y, and Z depending upon their capital contribution.
D)none

Question 8

Mr. P, a passenger in Allied Bus Lines, a common carrier was seriously injured when the bus fell into an embankment because of the negligence of the bus driver. Which of the following statements is more likely in accordance with accepted legal principles?

A)Mr. P may initiate a criminal action against Allied Bus Lines.
B)Mr. P may initiate a civil action against Allied Bus Lines based on a breach of contract theory only.
C)Mr. P may initiate a criminal action only against the driver of the bus.
D)Mr. P may initiate a civil action for damages on a quasi-delict theory against the driver of the bus.

Question 9

Which of the following is correct?

A)The debtor always loses the right to make use of the period whenever he becomes insolvent.
B)The right to rescind a contract in a reciprocal obligation must always be stipulated,
C)In a contract to sell, the seller retains ownership of the thing sold until the condition of full payment is fulfill

Question 10

Which of the following is correct?

A)A rescissible contract arises whenever the debtor defrauds the debtor.
B)Fraud is always a ground for annulment of a contract.
C)In a pledge, the thing pledged may be in the custody of a third person.
D)Services may be the object of a contract of sale.

Question 11

Mr. P, a passenger in Allied Bus Lines, a common carrier was seriously injured when the bus fell into an embankment because of the negligence of the bus driver. Which of the following statements is more likely in accordance with accepted legal principles?

A)Mr. P may initiate a criminal action against Allied Bus Lines.
B)Mr. P may initiate a civil action against Allied Bus Lines based on a breach of contract theory only.
C)Mr. P may initiate a criminal action only against the driver of the bus.
D)Mr. P may initiate civil action for damages on a quasi-delict theory against the driver of the bus.

Question 12

What is the legal concept of possession?

A)The holding of a thing or the enjoyment of a right
B)It is material occupation or by the fact that the right or property is subjected to the will of the claimant
C)The gathering of the products and the act of planting on the land
D)All of the above

Question 13

Can it be argued that the Martial Law has the effect of tolling the prescriptive period for the annulment of avoidable contract?

A)Yes, it has the effect of a force majeure, as such it suspends the running of the prescriptive period
B)No, it cannot be argued that Martial Law has the effect of a force majeure which in turn works to suspend the running of the prescriptive period
C)Yes, as long as the calling of the same was valid and constitutional
D)None of the above

Question 14

Which is not an element of Novation?

A)The new obligation is laid down in unequivocal terms
B)The new and the old obligations must be on every point incompatible with the other
C)Each of the obligations must have its independent existence
D)If they are compatible, the new obligation novates the first

Question 15

Nik sold to Paul a real property payable in monthly installments within a 5 year period, Paul was only able to pay 14 monthly installments, after the 60 day grace period and after 30 days of Paul's receipt of the notice and letter calling for the rescission of the contract Nik rescinded the same. Paul contended that there was an automatic rescission done by Nik, hence, the same was void. Give the best answer.

A)The rescission done by Nik was in faithful compliance with the Maceda Law, as the grace period and the sending of notices was complied before rescission
B)The rescission done by Nik was void as it fell short on compliance with the law, as the notices sent by the latter would not suffice the requirement of a notarial act.
C)Paul has a right to demand payment for damages caused by the automatic rescission done by Nik, the same being void under RA6552
D)Answer not given

Question 16

Under a contract of guaranty, may the benefit of excussion be waived?

A)Yes, a person may waive the benefit of excussion especially when the contract states that his liability shall be direct and immediate without any need to take steps to exhaust legal remedy
B)No, the benefit of excussion cannot be waived. it is expressly provided that the creditor must first exhaust all the properties of the debtor. The benefit of excussion serves to protect the guarantor from unscrupulous debtors
C)Yes, the benefit of excussion may be waived provided the person owning such benefit, has sufficient properties to cover the debt
D)No, it may not be waived by reason of public policy and commercial convenience

Question 17

May a mortgagor's liability on labor claims be transferred to the mortgagee-creditor?

A)Yes, after the mortgagee-creditor had foreclosed the assets of the mortgagor-debtor, the labor liability claims are deemed transferred to the latter.
B)No, the responsibility for the liabilities by the mortgagor towards his employees cannot be transferred via an auction sale to a purchaser who is also the mortgagee-creditor of the foreclosed assets.
C)No, the mortgage constitutes a lien on the determinative properties of the employer-debtor, because it is specially preferred credit to which worker's monetary claims is deemed subordinate
D)"B' and "C" only

Question 18

Which of the following is not a form of an equitable mortgage?

A)The consideration has been proven to be unusually inadequate
B)The supposed vendor has remained in the possession of the property even after the execution of the instrument
C)The alleged seller has continued to pay the estate taxes on the property
D)The alleged seller has planted crops and other agricultural products on the property under an agricultural leasing contract between them

Question 19

Article 1157 at the Civil Code enumerates the different sources of obligation. This enumeration is exclusive.

A)True
B)False
C)None of the above
D)all

Question 20

A court is empowered to ignore an unreasonable contract for attorney's compensation although it is not shown to be contrary to morality or public policy.

A)True
B)False
C)None of the above
D)all

Question 21

A part can recover damages incurred during the period of negotiation, even if the contract is not finally perfected as long as there was a definite offer made by the other party who, without any valid reason, withdrew from the negotiations.

A)True
B)False
C)None of the above
D)all

Question 22

A contract is binding between the parties notwithstanding the absence of a law that governs it, as long as it is not contrary to morals, good customs, public policy, or public order.

A)True
B)False
C)None of the above
D)all

Question 23

An obligation to pay can arise from certain lawful, voluntary and unilateral act which did not benefit anyone or which did not cause damages to another person.

A)True
B)False
C)None of the above
D)all

Question 24

The guardian of an imbecile shall be civilly liable as principal for the crime committed by the imbecile alone.

A)True
B)False
C)None of the above
D)all

Question 25

The service of the subsidiary imprisonment of an insolvent offender shall extinguish his civil liability.

A)True
B)False
C)None of the above
D)all