OBLIGATIONS AND CONTRACTS

1. It is a principle which holds that contracts must be binding to both parties and its validity and effectivity can never be left to the will of one of the parties.

a) Obligatory force of contractsb) Mutuality of contractsc) Autonomy of contractsd) Relativity of contracts

2. This refers to the rule which holds that the freedom of the parties to contract includes the freedom to stipulate, provided the stipulations thereof are not contrary to law, morals, good customs, public order or public policy.

a) Obligatory force of contractsb) Mutuality of contractsc) Autonomy of contractsd) Relativity of contracts

3. Gwen, Nyn and Elayne bound themselves solidarily to pay Lan the sum of P5M. When the obligation became due and demandable, Lan sued Gwen for the payment of P5M. Gwen moved to dismiss on the ground that there was failure to implead his solidary co-debtors, who are indispensable parties to the case. Will the motion to dismiss prosper? Why?

a) Yes, because Nyn and Elayne should have been impleaded as their obligation is solidary.b) No, because Lan may proceed against either Gwen, Nyn or Elayne or some or all of them simultaneously.c) No, because in solidary obligations, any one of the solidary debtors can pay the entire debt.d) Yes, because Nyn and Elayne will be unduly enriched at the expense of Gwen.

4. The University of Mindanao promised to give P1M to any of their barristers who will top the 2014 Bar Exam. A week before the release of the bar exam results, a big fire ravaged the university, destroying its properties, including the vault where the P1M allotment is kept. During the release of the bar exam results, Clark, a UM barrister emerged as the second placer. Can Clark demand the P1M from UM?

a) No, because the money was lost without UMs fault, hence the obligation is extinguished.b) No, Clark cannot demand the entire P1M from UM, but can only ask for damages.c) Yes, because the money here is generic and its loss does not extinguish the obligation.d) Yes, because the obligation to give on the part of UM was not extinguished by the happening of a fortuitous event.

5. Arya, is indebted to Auri in the amount of P50,000.00. When Arya was asked to pay her obligation, she said to Auri: I will pay you when I have money. Her obligation is deemed as:

a) One with a periodb) One with a suspensive conditionc) One with a resolutory conditiond) Demandable at once

6. As a general rule, demand is needed to put a debtor in default. Which among the following is an exception to this general rule?

a) When there is delayb) When parties agreed that demand is neededc) When time is of the essence of the contractd) None of the above

7. The following are the duties of a debtor/obligor in an obligation to give a determinate thing, except:

a) To deliver the thing itselfb) To take care of the thing with the utmost diligence of a very cautious personc) To deliver the fruits, accessories and accessionsd) To answer for damages

8. It is a conduct that may consist of giving, doing, or not doing something.

a) Obligationb) Juridical necessityc) Prestationd) Contract

9. When the consent of one of the parties is vitiated, the contract is:

a) Voidableb) Rescissiblec) Voidd) Unenforceable

10. The following are void contracts except:

a) Pactum comissoriumb) Pactum de non alienadoc) Pactum leoninad) Pacto de retro