Obligations & Contracts Name: ______________________________________ Mid-term Examinations February 1, 2014 Instructions: Write your name on the blank provided above. Your answers should be written in your test booklet in chronological order. If you want to erase your answer, simply place a straight one bar line over the answer. You may use this questionnaire as your scratch paper. Write legibly. Multiple Choice Questions: Write the letter corresponding to the correct answer. Do Not Forget to place the number before the correct answer.

1.

Which among the following may not be an underlying philosophy in obligations arising from Contracts? a) Reciprocity b) Freedom to contract c) Good faith d) Law between the parties

2. If the obligor is unable to comply with his obligation by reason of fortuitous event the obligation is extinguished, except when a) He is guilty of negligence b) When the obligations to give is indeterminate c) When the obligation is determinate d) When the obligation proceeds from a criminal offense 3. Lessor A leased his apartment unit to Lessee B. In the contract of lease, it was stipulated therein that for failure of he lessee B to pay his rentals for two (2) consecutive months, A may validly eject B, without resort to court. Upon B’s failure to pay 2 monthly rentals he was ejected from the premises, B now goes to court for Damages for his alleged failure to exercise his day in court since he was ejected from the premises without a court hearing. Decide.. a) B’s contention is valid because the contract between vests reciprocal obligations, hence he must have his right to seek judicial recourse b) B’s contention is valid because it must be proved that he indeed failed to pay 2 installments; c) A’s action is right because the injured party has the right to rescind the obligation d) A’s action is correct because A’s non resort to judicial action is expressed in the contract; e) B’s contention is correct because in all reciprocal obligations, the right of the parties to rescind the contract is implied and that judicial decree is needed. 4.

In an obligation whereby the obligor is bound by different prestations, a) It is the debtor who has the right of choice unless the creditor is given that right b) The right of choice to the debtor gives him the freedom to chose c) The debtor can chose to give a portion or part of each prestations except those which are indivisible

5. Mode of Extinguishing obligations whereby the right of subrogation may occur: a) Novation f) Resolutory b) Compensation g) Loss of the Thing due c) Condonation h) Compromise d) Payment i) Death of one of the parties in personal obligations e) Confusion j) Application of Payment 6. Mode of Extinguishing obligation which is subject to a condition the fulfilment of which extinguishes the obligation: a) Novation f) Expiration or fulfillment of resolutory term b) Compensation g) Loss of the Thing due c) Condonation h) Compromise d) Payment i) Death of one of the parties in personal obligations e) Confusion j) Application of Payment 7. Mode of Exntinguishing obligation whereby there are several debts to one creditor and the debts are of the same kind and burden, the payment (not sufficient) is applied to all debts proportionately. (Sobrang give away ng clue) a) Novation f) Expiration of resolutory term b) Compensation g) Loss of the Thing due c) Condonation h) Compromise d) Payment i) Death of one of the parties in personal obligations e) Confusion j) Application of Payment

Page 02. 8. When a third person substitutes to the debtor without the latter’s knowledge and the third person is unable to fulfill the obligation, extinguishes the obligation of the old debtor. a) b) c) d) e)

Novation Compensation Condonation Payment Confusion

f) Expiration of resolutory term g) Loss of the Thing due h) Compromise i) Death of one of the parties in personal obligations j) Application of Payment

9. The distinction between negligence and fraud is a) Voluntariness b) Intention c) Degree of Damages sustained by the injured party d) Negligence or culpa is a civil in character while dolo or fraud is criminal in essence.

10. The principle giving remedies to the creditor for his protection and enforcement of his right against the debtor such as exhaustion of debtor’s property in his possession, to be subrogated to all the rights and actions of the debtor and third to impugn all the acts of the debtor, which were intended to defraud him is not applicable in a) Obligations with suspensive condition b) Obligations with resolutory condition c) The case of fruits and interests d) Rights which are purely personal