Multiple-Choice & True-or-False QUESTIONS on Obligations & Contracts

INSTRUCTIONS: All of these questions are either MCQs or T/F questions. Please give credit to this blog if ever you wish to copy-paste. Thanks!

1. It is a juridical relation whereby a person may demand from another the observance of a determinative conduct, and in case of breach, may demand satisfaction from the assets of the latter.
a. Natural obligations
b. Moral obligations
c. Civil obligations
d. Contracts2. Which of the following can never be enforced in court?
a. Obligation based on positive law
b. Obligation based on conscience
c. Obligation based on voluntariness
d. Obligation based on contracts

3. Which is not an element of an obligation?
a. Vinculum juris
b. Obligee
c. Prestation
d. Contract

4. It is an efficient cause by which the debtor is bound to perform a prestation.
a. Vinculum juris
b. Obligee
c. Prestation
d. Contract

5. Which is not a way by which juridical tie is established?
a. Statute
b. Bilateral acts
c. Unilateral acts
d. Acts of god

6. It is he who in whose favor the obligation is constituted, established or created.
a. Active subject
b. Passive subject
c. Obligor
d. Debtor

7. It is the one in whom it is incumbent to fulfill the prestation.
a. Active subject
b. Passive subject
c. Obligee
d. Creditor

8. Which of the following is a active aspect of an obligation?
a. Right
b. Prestation
c. Debt
d. Juridical tie

9. The object of an obligation must NOT be:
a. Licit
b. Possible
c. Indeterminate
d. Determinable

10. Which is generally not required to make an obligation binding?
a. Form
b. Legality
c. Possibility
d. Determinability

11. Which is not always required to make an obligation binding?
a. Possibility
b. Determinability
c. Pecuniary value
d. Juridical relation

12. Which conduct is not expected of the obligor?
a. Giving
b. Doing
c. Not doing
d. Not giving

13. Which of the following is an obligation not to do?
a. Obligation of seller in a contract of sale
b. Obligation of landowner in easement of way
c. Obligation of painter in a contract of service
d. Obligation of depositary in a contract of deposit

14. The law on nuisance creates an obligation…
a. To do
b. Not to do
c. To give
d. Not to give

15. Which characteristic of a valid prestation is also called “criteria”?
a. Form
b. Legality
c. Possibility
d. Determinability

16. Creditor can retain thing delivered voluntarily by the debtor even though, under the law, the obligation cannot be enforced.
a. Civil obligation
b. Moral obligation
c. Natural obligation
d. Legal obligation

17. Which of the following does not arise from natural law?
a. Civil obligation
b. Moral obligation
c. Natural obligation
d. Conscientious obligation

18. Which of the following is a negative obligation?
a. Obligation of seller in a contract of sale
b. Obligation of landowner in easement of way
c. Obligation of painter in a contract of service
d. Obligation of depositary in a contract of deposit

19. Which of the following is a real obligation?
a. To do
b. To give
c. Not to do

20. “I promise to give you one of my cars.” What kind of object is this?
a. Generic
b. Specific
c. Determinate
d. Limited generic

21. Which of the following is an obligation established by agreement of the parties?
a. Unilateral obligation
b. Bilateral obligation
c. Conventional
d. Statutory

22. Which of the following is a divisible obligation?
a. To deliver a car
b. To not kill any one
c. To pay one million pesos
d. To not compete with employer after retirement

23. “I will pay you 1 million for the car I bought from you.”
a. Pure obligation
b. Conditional obligation
c. Joint obligation
d. Solidary obligation

24. This obligation is characterized by being immediately due and by lack of burden of time or condition.
a. Pure obligation
b. Conditional obligation
c. Joint obligation
d. Solidary obligation

25. A debtor is liable for the whole obligation although he has other co-debtors.
a. Pure obligation
b. Conditional obligation
c. Joint obligation
d. Solidary obligation

26. Who is entitled to reimbursement for other co-parties’ share in the contract?
a. Solidary co-debtor
b. Solidary co-creditor
c. Joint co-debtor
d. Joint co-creditor

27. This obligation gives the obligor an option to perform only one of several prestations.
a. Simple obligation
b. Alternative obligation
c. Facultative obligation
d. Obligation with a penalty

28. The general rule here is that interest stipulated in the agreement is generally substitute for fine. If parties agree, interest stipulated and fine should be paid.
a. Simple obligation
b. Alternative obligation
c. Facultative obligation
d. Obligation with a penalty

29. Husband has an obligation to support his wife and children.
a. Obligation ex lege
b. Obligation ex contractu
c. Obligation ex malificio
d. Obligation ex quasi-delicto

30. Which shows a combination of legal and contractual obligations?
a. Husband and wife
b. Bus driver and bus company
c. Murderer and victim
d. Mother and son

31. What do you call the time when an obligation is created?
a. Perfection
b. Extinguishment
c. Fulfillment
d. Meeting of the minds

32. Which of the following does not the immediate demandability of an obligation?
a. Want of period or term
b. Suspensive condition
c. Period
d. Term

33. Which does not characterize an obligation ex lege?
a. It does not need the consent of the obligor.
b. “Lege” itself should be the creator of the obligation.
c. Compensation is generally a option to extinguish the obligation.
d. It must be expressly set forth in the law creating it and not merely presumed.

34. This obligation is perfected from the time the minds of the parties meet.
a. Obligation ex lege
b. Obligation ex contractu
c. Obligation ex malificio
d. Obligation ex quasi-delicto

35. What governs obligations created by law?
a. The Civil Code only
b. The law creating them only
c. The Civil Code in a suppletory character
d. The law creating them in a suppletory character

36. What does compliance in good faith mean?
a. Contract is law between the contracting parties.
b. Parties must abide by the terms and conditions of the contract.
c. Compliance with a contract cannot be made dependent on the will of only one of the parties.
d. A party cannot cancel or annul the contract without the consent of the other party or the order of the court.

37. A party cannot evade obligations under the contract. Which is NOT true?
a. Evasion is allowed if provided in the contract.
b. Evasion is allowed is agreed by the parties.
c. Evasion is never allowed.
d. Evasion is illegal.

38. To which limitation to the freedom to contract does “protection of women” belong?
a. Law
b. Morals
c. Good customs
d. Public order
e. Public policy

39. TRUE OR FALSE: When penalty in case of breach of obligation is unconscionably high, the court can only convince the parties to reduce it.

40. X and Y entered into an agreement whereby X would pay Y 2000 pesos per month so that Y would take all necessary care of X’s house while he’s on vacation in the US. One night, the house of Y caught fire and X saved Y’s car, refrigerator, TV, etc. What is the source of X’s obligation to Y?
a. Law
b. Contracts
c. Quasi-contracts
d. Delicts
e. Quasi-delicts

41. What are characteristics common to mistake in payment and unauthorized management?
a. Lawful, voluntary and unilateral
b. Unlawful, involuntary and multilateral
c. Lawful, voluntary and bilateral
d. Unlawful, involuntary and unilateral

42. What source of obligation is presumptive consent present in?
a. Law
b. Contracts
c. Quasi-contracts
d. Delicts
e. Quasi-delicts

43. What is another term for negotiorum gestio?
a. Mistake in payment
b. Inofficious manager
c. Unjust enrichment
d. Negotiable gesture

44. What is another term for solutio indebiti?
a. Unauthorized management
b. Inofficious manager
c. Unjust enrichment
d. Solution to the debt

45. Jane told John, “If you do something great to me, I will have sex with you.” John who has been waiting for 10 years to have Jane in bed, saw a chance when he passed by Jane’s house one night and he saw that watering is coming out of the front door. It would seem that Jane went out to the movies but forgot to shut the faucet in her bathtub. John broke the door and turned off the faucet.

a. TRUE OR FALSE: John can demand payment from Jane for negotiorum gestio.
b. TRUE OR FALSE: John can demand to have sex with Jane for what he has done. 

46. Which of the following does not characterize negotiorum gestio?
a. The gestor undertook a risky operation which the owner was not accustomed to embark upon.
b. He did not prefer his own interest to that of the owner.
c. He did not fail to return the property after demand from the owner.
d. He did not assume the management in bad faith.

47. Which is not an obligation of a gestor in negotiorum gestio?
a. To render an account of costs and expenses
b. To return the property to the owner upon demand
c. To pay any load he incurred not in the interest of management
d. To pay owner for damages necessarily incurred in the management

48. TRUE OR FALSE: Every person criminally liable is civilly liable.

49. Which of the following is not an element of an obligation quasi-delict?
a. Act or omission
b. Fault or negligence
c. Damage or injury
d. Cause and effect relationship between fault and damage
e. Pre-existing contractual relation between the parties

50. A person civilly liable is not liable for:
a. Restitution
b. Imprisonment
c. Reparation for damages cause
d. Indemnity for consequential damages

51. TRUE OR FALSE: There is natural obligation when…

a. A civil obligation is performed after it prescribes.
b. A third person pays a debt that has already prescribed.
c. A contractual obligation is performed after judicial annulment thereof.
d. A minor performs his obligation in the contract.
e. A party performs his obligation after the creditor fails to enforce the obligation in court.
f. An heir pays debt exceeding the value of the property inherited.
g. A legatee is paid his share in the inheritance although the court has declared it void.

52. Which of the following is not true about natural obligations?
a. They are based on equity and natural law.
b. The debtor cannot perform this obligation.
c. The creditor cannot enforce this obligation.
d. They are not based on law, contracts, quasi-contracts, delicts and quasi-delicts.

53. TRUE OR FALSE: A natural obligation is converted into a civil one by novation.

54. TRUE OR FALSE: A natural obligation cannot be converted into a civil one by securing it with real or personal security.

55. Which of the following does not the creditor to payment of damages?
a. Fraud
b. Delay
c. Negligence
d. Mutual agreement to contravene tenor

56. If the obligation is specific and there is noncompliance, which is not an remedy?
a. Specific performance
b. Collection of damages
c. Cancellation of the contract
d. Performance of the obligation by another at the debtor’s expense

57. When does real right of the creditor over the fruits commence?
a. After delivery
b. Before delivery
c. From the time the obligation to deliver arises
d. Before the time the obligation to deliver arises

58. What characterizes a personal right?
a. Enforceable against the whole world
b. Enforceable against a definite person
c. Has no definite passive subject
d. Right over a thing

59. Specific performance as a remedy will compel the obligor to perform his obligation. This is not available when:
a. Such performance will result in economic loss on the part of the debtor.
b. Such performance will result in inconvenience on the part of the debtor.
c. Such performance will result in unconscionable advantage to the debtor.
d. Such performance will result in harsh, inequitable and oppressive consequences to the debtor.

60. Specific performance plus damages as a remedy is not available if:
a. Purely personal obligations to do
b. Purely personal obligations not to do

61. Which of the following is not a voluntary breach?
a. Mora
b. Dolo
c. Culpa
d. Caso fortuito

62. Who is a good father of a family?
a. He who is knows everything about the future.
b. He who takes precautions when circumstances suggest danger.

63. Which of the following is not a consequence of breach?
a. The obligation is performed at the debtor’s expense.
b. The obligation is done with debtor’s imprisonment.
c. The obligation is done with payment of damages.
d. The obligation poorly done is undone.

64. The remedy of having the obligation done by the debtor or by another at the debtor’s expense can be availed of when:
a. The obligation is impossible by nature.
b. The obligation is barred by a sunset clause.
c. The obligation is subsequently forbidden by law.
d. The obligation is prejudicial to the rights of a third person.

65. TRUE OR FALSE: In case the remedy mentioned in the next preceding number isnot available, collection of damages is also not available.

66. In reciprocal obligations, there is delay:
a. From the time the obligee judicially demands it.
b. From the time the oblige extrajudicially demands it.
c. From the time the other party complies with his obligation.
d. From the time the period stated in the obligation expires or lapses.

67. What is an element of delay?
a. Obligation must not be due, demandable and liquidated.
b. A judicial or extrajudicial demand has not been made by the creditor.
c. Compliance of the debtor of the creditor’s demand for him to perform.
d. Debtor does not perform his positive obligation on the date agreed upon.

68. There is no need of demand in case:
a. The obligation is reciprocal in nature.
b. There is express waiver of demand.
c. There is a case filed in court.

69. Which is default on the part of the creditor?
a. Mora solvendi
b. Mora accipiendi
c. Compensatio morae

70. TRUE OR FALSE: Mora solvendi does not apply to natural obligations.

71. TRUE OR FALSE: Mora solvendi does not apply to negative obligations.

72. TRUE OR FALSE: Mora solvendi does not make the debtor liable for fortuitous events.

73. TRUE OR FALSE: If the debtor can prove that loss would nevertheless transpire even if he had not been in default, the court may equitably mitigate his liability.

74. What is the remedy of the debtor in case of mora accipiendi?
a. Annul the contract
b. Sue creditor for damages
c. Consign the thing
d. Compel the creditor to accept

75. Which is an effect of mora accipiendi?
a. Debtor becomes liable for damages.
b. Creditor becomes liable for damages.
c. Debtor becomes liable for loss of the thing due to fortuitous events.
d. Creditor becomes liable for loss of the thing due to fortuitous events.

76. In reciprocal obligations, PARTY A cannot compel immediate compliance from PARTY B if:
a. PARTY A is in delay.
b. PARTY B is in delay.
c. PARTY A has already performed his obligation.
d. A different date for PARTY B’s performance is stipulated.

77. What is the effect of performance by parties of their reciprocal obligations?
a. Compensation
b. Condonation
c. Novation
d. Payment

78. Delay still has effect when:
a. The debt has not yet prescribed.
b. Creditor condones delay expressly.
c. Creditor condones delay impliedly.
d. The debt’s due date has been moved.

79. Which fraud is cause for annulment of the contract?
a. Causal fraud
b. Incidental fraud

80. What is an example of incidental fraud?
a. Debtor delivers a thing of lower quality than that stipulated in the contract.
b. Debtor convinces creditor is engaged in a certain business but actually not.

81. Which is not allowed by law?
a. Waiver of past fraud
b. Waiver of future fraud
c. Waiver of past debt
d. Waiver of future debt

82. Which is not a remedy in case of fraud?
a. Unilateral abandonment of the contract
b. Annulment of the contract
c. Specific performance
d. Damages

83. Which breach admits of mitigation of liability?
a. Diligence
b. Negligence
c. Causal fraud
d. Incidental fraud

84. Which breach can be converted into fraud?
a. Delay
b. Wanton delay
c. Negligence
d. Wanton negligence

85. TRUE OR FALSE: Negligence plus bad faith is considered delay.

86. What is the effect of contributory negligence on the part of the creditor?
a. Cancellation of the contract
b. Mitigation of recoverable damages
c. More liability on the part of debtor
d. Extinguishment of the obligation

87. TRUE OR FALSE. If the negligent act or omission of the creditor is the proximate cause which has lead to the damage or injury complained of, he cannot recover.

88. Which of the following is NOT a requisite for the application of the rule on fortuitous events?
a. The cause of the event is independent of the will of the debtor.
b. The event is unforeseeable or unavoidable.
c. The occurrence renders it absolutely impossible for the debtor to fulfill his obligation in a normal manner.
d. Debtor has participated in the aggravation of the injury to the creditor.

89. TRUE OR FALSE:
a. Contributory negligence on the part of the debtor in caso fortuito frees him from liability.
b. It is enough that the fortuitous event is merely contributory to the impossibility of the debtor’s performance of his obligation.
c. That something is difficult to foresee makes it a fortuitous event.

90. Which of the following is a force majeure?
a. Earthquakes
b. Storms
c. Floods
d. Wars

91. TRUE OR FALSE:
a. Both force majeure and acts of god are independent of the will of the obligor.
b. There is liability even in cases of acts of god if law provides.
c. There is liability for acts of god if the obligation requires assumption of risk.
d. There is liability for acts of god if parties stipulate.
e. The debtor is not liable for acts of god even if he’s guilty of malice or bad faith.
f. The obligor is not liable for acts of god even if he promises to deliver the thing to two or more persons not having the same interest.
g. The debtor is not liable for acts of god even if he contributed to the loss.
h. The debtor remains liable for acts of god if he is guilty of fraud, delay, negligence or contravention of tenor.
i. The debtor’s generic obligation is not extinguished by acts of god.

92. What action can a creditor bring to cancel all contracts entered into by the debtor in fraud of the former?
a. Specific performance
b. Accion subrogatoria
c. Accion pauliana
d. Collection