Obligations
1. Which of the following statements is the BEST description of a “condition”?
A. A term which must be satisfied before a contract can come into existence.
B. A term in a contract which provides that the contract will terminate on the happening of a
particular event.
C. A term in a contract, non-performance of which may result in rescission of the contract
and/or damage to the plaintiff.
D. A tern in a contract, the consequence of breach of which cannot be determined until after
the breach has occurred and the seriousness of the effects of the breach can be
ascertained.
2. Which of the following situations is the BEST example of executor consideration?
A. Anton pays Manny P50 today, in return, for Manny giving Anton an orange today.
B. Anton promises to pay Manny P50 tomorrow, in return, for Manny giving Anton, an
orange tomorrow.
C. Anton promises to pay Manny P50 tomorrow, in return, for Manny giving Anton, an
orange yesterday.
D. All of the above.
3. Betina Furniture Co. undertook to deliver to Mr. Magsaysay specified places of living room,
dining room and bedroom furniture – all made of narra, for a price stated in the contract. The
contract had a penal clause that any violation of the contract would entitle the aggrieved party
to damages in the amount of P100,000. The furniture delivered by Betina was made, not of
narra but of inferior wood. In a suit to recover damages, Mr. Magsaysay was able to prove
that the actual damages he sustained amount to P200,000. If you were to decide based on
legal ground, how much claim would you award to Mr. Magsaysay?
A. P50,000 C. P200,000
B. P100,000 D. P300,000
4. Demand is necessary in this situation for the debtor to be in delay
A. When the time is a controlling motive.
B. When the obligation has been fulfilled.
C. When the debtor delivers a wrong thing in the due date.
D. When the obligor has rendered it beyond his power to perform.
5. Which of the following circumstances will payment of lesser amount fail to discharge a debt,
despite a creditor’s promise to accept the lesser amount in full satisfaction of the debt?
A. Where the creditor has requested that the debtor pay the lesser amount on an earilier
date.
B. Where the creditor has requested that the debtor pay the lesser amount at a different
place.
C. When the creditor has requested that the debtor pay the lesser amount by cheque
instead of cash.
D. Where the creditor has requested that the debtor accompany payment of the lesser
amount with some other act they were not originally bound by the contract to perform.
6. Which of the following condonations will NOT extinguish the debtor’s obligation?
A. The condonation and the acceptance are in a public instrument. The condonation
involves a parcel of land.
B. The condonation is in a public instrument. The acceptance is made orally. The
condonation involves a computer printer whose value is P4,000.
C. The condonation and the acceptance are made orally with the creditor delivering to the
debtor simultaneously the promissory note amounting to P10,000.
D. The condonation is in a public instrument. The acceptance is made in a private
instrument. The condonation involves a television set worth P20,000.
7. Under the law, anything paid or delivered before the arrival of the suspensive period the
obligor being unaware of the period, may be recovered with the fruits and interest. Which is
the EXCEPTION?
A. The obligor is not aware of the period.
B. The obligor delivered before the period.
C. The period is for the benefit of the creditor and debtor.
D. The obligation involved is an obligation to do and not to do.
