The Professional CPA Review School

Main: 3F C. Villaroman Bldg. 873 P. Campa St. cor Espana, Sampaloc, Manila
 (02) 735 8901 / 0917-1332365
email add: [email protected]
Baguio Davao
2nd Flr. #12 CURAMED Bldg. Marcos Highway, Baguio City 3/F GCAM Bldg. Monteverde St. Davao City
 0921-7566143  0917-1332365

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS OCTOBER 2022 BATCH

FIRST PRE- BOARD EXAMINATION AUG 1, 2022; 12:00NN-3:00PM

INSTRUCTIONS: Select the correct answer for each of the following questions. Mark only one
answer for each item by writing a SHADING corresponding to the letter of your choice on the
answer sheet.

1. On June 1, 2022 Isay borrowed P5m from Bekang payable after 30 days.
Kiko proposed to pay Isay’s debt and Bekang agreed to release Isay from her obligation. Isay was
not aware of the agreement between Kiko and Bekang. When Bekang tries to collect from Kiko upon
maturity of the obligation, Kiko turned out to be insolvent and it is of public knowledge. In this case:
A. Bekang can still run after Isay
B. Bekang can no longer run after Isay
C. Bekang can sue for damages against Isay and Kik0
D. Bekang should file a specific performance case against Isay

2. Kiko promised to give Bekang the following on the latter’s 18th birthday:
I. One of Kiko’s 10 golden retriever dogs
II. Apple iphone XII
III. Brand new Samsung Curve HD TV, 72 inches
IV. A black Cross ballpen
Which of the following is true?
A. All the objects are generic
B. Items I and II are specific
C. Only item no. III is specific
D. Only item no. IV is generic

3. Bob obliged himself to give to Job his car onJune 15, 2022. There was no delivery until June 20,
2022 when the garage of Bob’s house collapsed due to a strong typhoon and the car was totally
destroyed. Is Bob still liable?
A. No, even if Bob was already in default, he could plead impossibility of performance.
B. Yes, the obligation to deliver the car is changed to pay the equivalent value because Bobby is in
legal delay.
C. No, because there was no demand by Job to deliver the car and the specific object was lost due
to fortuitous event. The obligation is extinguished.
D. Yes, because the contract is perfected.

4. Angela and Gabriel are jointly liable to deliver on July. 15, 2022, their shihtzu dog “Kisses” valued at
P10,000 to Pauline. Which of the following is correct?
A. The prestation is indivisible making the debtors solidarily liable
B. If on July15, 2022, Angela is willing to deliver the dog but Gabriel is not, Pauline may enforce
the obligation against Angela
C. Angela is liable for a proportionate part of the obligation and will be liable also for damages if
Gabriel is not ready to comply with his obligation, even if Angela is willing to deliver the dog
D. The liability of Angela and Gabriel is joint and that damages may be assessed only against the
debtor who violated the obligation

5. On Dec. 6, 2021 Buknoy obtained a loan from May Malasakit Bank due on October 1, 2022. The
loan was evidenced by written contract and as a security, Buknoy executed a mortgage on his
house. The house however, was subsequently destroyed by typhoon “Edong” on July 1, 2022. In
this case.
A. The obligation of Buknoy is extinguished
B. The bank may demand payment Buknoy even before October 1, 2022
C. The mortgage is extinguished without fault of Buknoy and therefore must be excused from
paying the obligation
D. The bank must wait for October 1, 2022 before it could demand payment.
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 2

6. Ben promised to give to Connie the luxury liner M/V Morning Star with a particular Boeing 747
commercial airplane as a replacement. Ben intentionally destroyed the plane by attaching bombs
into it. In this case:
A. Connie may demand delivery of M/V Morning Star plus damages
B. Connie may demand the value of the airplane plus damages
C. Ben is liable for damages for the loss of the airplane
D. Ben is liable to give M/V Morning Star

7. 1st Statement – A future event may be a period or a condition.

2nd Statement –The debtor losses the right to the period if he does not give any security to the
creditor.
A. 1st statement is wrong, 2nd statement is correct
B. 1st statement is correct, 2nd statement is wrong.
C. Both statements are wrong.
D. Both statements are correct

8. 1st Statement – The condition to do an impossible thing does not render the obligation void.
2nd Statement – In alternative obligations, the right to select which of the prestations shall be
delivered belongs to the creditor, unless expressly given to the debtor.
A. 1st statement is wrong, 2nd statement is correct
B. 1st statement is correct, 2nd statement is wrong.
C. Both statements are correct
D. Both statements are wrong.

9. A promissory note signed by Manny is worded as follows: “I promise to pay Diego the sum of One
Million Pesos provided that if he should fail in the first online Bar Examinations in Feb. 2022, he
shall return to me the said amount.” The above note gives rise to an obligation with:
A. Suspensive condition
B. Casual condition
C. Resolutory condition
D. Mixed condition

10. Tom owes Jerry, P1m payable on Sept 1, 2022. Which of the following is correct?
A. If Jerry dies before Sept 1, 2022, his heirs can collect from Tom
B. If Tom dies, the obligation is extinguished
C. If Jerry dies, the obligation is extinguished
D. If Tom and Jerry die, the heirs of Jerry can collect from the heirs of Tom

11. Sources of obligations as provided by law, except

A. Torts
B. Contracts
C. Culpa aquiliana
D. Solutioindebiti

12. Which of the following produces payment:

A. Dacion en pago
B. Novation
C. Delivery of a promissory note
D. Giving of collateral or guaranty

13. Donald, Daffy and Daisy are debtors of creditors Winnie, Piglet and Eeyore, in the amount of
P900,000. Winnie can collect from Daisy:
A. P300,000
B. P150,000
C. P900,000
D. P100,000

14. Which of the following obligations is valid?

A. Asyong obliged himself to give to Bosyo his brand new Omega watch if the latter can make a
circle that is at the same time a square
B. Asyong obliged himself to give to Bosyo his BMW if Bosyo will kill Juan
C. Asyong obliged himself not to demand the return of his laptop borrowed by Bosyo unless Bosyo
will fly to the sun and be back on earth alive
D. Asyong made the promise on Feb 8, 2022 thathe will paint the portrait of Bosyo on December
1, 2021.
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 3

15. 1st Statement- In Facultative obligations, if substitution has been made, the loss of the original
prestation is immaterial
2nd Statement -The condition that some event happen at a determinate time shall give rise to the
obligation as soon as the time expires or if it has become indubitable that the event will not take
place.
A. False, True
B. True, False
C. False, False
D. True, True

16. Ana promised to give her son a car if the son will marry Sofia this year, 2022. In this case:
A. If before 2022 ends, Sofia is already dead, Ana will give her son a car
B. If before 2022 ends Ana’s son married Sofia, obligation to give a car is effective and
demandable.
C. If today is January 1, 2023 and Ana’s son married Sofia, he will be entitled to the car
D. If today is January 1, 2023 and Ana’s son did not marry Sofia, Ana can sue for breach of
contract.

17. Jane and Jenny are debtors of solidary creditors John, James and Jonathan, in the amount of
P900,000. Jane’s obligation is:
A. Pay James P100,000
B. Pay John P150,000
C. Pay Jonathan P300,000
D. Pay John, James and Jonathan P900,000

18. Jane and Jenny are debtors of solidary creditors John, James and Jonathan, in the amount of
P900,000. John can collect from Jenny:
A. P150,000
B. P450,000
C. P900,000
D. P300,000

19. Bogs sold his house and lot to Tess reserving his right to repurchase the same within 5 years from
the date of the execution of their agreement. The sale together with the right to repurchase was
registered with the Register of Deeds. Two years after the execution of the sale, Tess sold the same
lot to Conrad who was not aware that Bogs reserved his right to repurchase the lot. In this case:
A. The sale by Tess to Conrad is void
B. The sale by Bogs to Tess is absolute
C. The sale by Bogs to Tess is subject to a suspensive condition.
D. The sale by Tess to Conrad is subject to a suspensive condition.

20. During the pendency of the criminal case against a thief, the car he stole was lost through an
accidental fire. Prior to the accident, several demands were made for the owner to receive the return
of the car, but the owner refused to receive the same without any reasonable ground. This will result
to:
A. extinguishment of the obligation because an accidental fire is always a fortuitous event.
B. extinguishment of the obligation because the owner is guilty of delay
C. extinguishment of the civil obligation because the value of the car will be converted into the
number of days the thief will serve in prison.
D. liability of the accused to pay the price of the car as the obligation will not be extinguished
because the obligation proceeds from a criminal offense.

21. The following are examples of obligations with a period, except:

A. “As soon as I have money”
B. “30 days after the death of Digong”
C. “10 minutes after sunset on Dec 1, 2022”
D. “If Digong reaches the age of 78 which is 2 years from today”

22. The creditor shall have a right to indemnity for damages when, through the fault of the debtor, all the
things which are alternatively the object of the obligation have been lost or compliance of the
obligation has become impossible. The indemnity shall be fixed taking as a basis the value of the
A. Choice of the creditor.
B. Most expensive thing.
C. Last thing which disappeared.
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 4

D. First thing which disappeared.

23. 1st Statement - "I will begin supporting you from the time your father dies of heart attack" is an
example of an obligation with suspensive period because death is a certain event
2nd Statement - Compensation will extinguish the obligation as when the creditor will gratuitously
abandon all his rights against the debtor
3rd Statement - A condition is considered fulfilled if the debtor voluntarily prevents its fulfillment.
A. Only the 1st statement is correct C. Only the 3rd statement is correct
B. Only the 2nd statement is correct D. None is correct

24. Lenny obliged herself to deliver to Jenny the following:

1) her brand new BMW m5 car 2022 model
2) A black Persian cat
Which of the following is true?
A. In case Lenny failed to deliver any of the two objects, the obligations may be complied with at her
expense
B. In case Lenny failed to deliver the Persian cat, the court may order the performance of the
obligation at her expense
C. Lenny is obligated to exercise diligence over the two objects
D. Lenny is obligated to deliver all accessories of the two objects

25. Ping owes Pong P100,000. Later Ping paid Pong P75,000 leaving a balance of P25,000. Leila,
intending to surprise Ping, paid Pong the sum of P100,000 thinking that Ping still owed Pong that
amount. Leila did this without knowledge of Ping. Which of the following is correct?
A. Leila can recover P100,000 from Ping
B. Leila can recover P100,00 from Pong
C. Leila cannot recover anything from Ping
D. Leila can recover P25,000 from Ping

26. A solidary creditor who paid the entire obligation will be not entitled to be reimbursed in which of the
following cases?
A. If such payment was made after the obligation has become due and demandable and notice of
payment was made only to him
B. If such payment was made in compliance with the demand made to him by all the creditors
C. If such payment was made before the obligation is due
D. If such payment was made after the obligation has prescribed or become illegal

27. A, B and C are jointly indebted to D and E in the amount of P3m. Before due date, C becomes
insolvent while B died. On due date, E can collect from A:
A. Php 1m
B. Php 1.5m
C. Php 500k
D. Php 3m

28. 1st Statement – Unless the application of payment is expressly stated, the payment shall be applied
to the obligation most burdensome or onerous to the debtor.
2nd Statement –Cession en Pago is governed by the law on sales
A. 1st statement is wrong, 2nd statement is correct
B. 1st statement is correct, 2nd statement is wrong.
C. Both statements are wrong.
D. Both statements are correct

29. X, Y and Z are solidary debtors of Q and R in the amount of P60,000.00. Q condoned the share of Z
which the latter accepted. How much can R collect from Y if X is insolvent?
A. Zero because condonation will inure to the benefit of all debtors
B. P30,000.00
C. P20,000.00
D. P10,000.00

30. May the suit filed by a passenger who was hurt against the operator of a public utility vehicle still
prosper even if the driver was acquitted by the court?
A. Yes, provided he can prove the negligence of the driver.
B. No, this will constitute double jeopardy which is violative of the Constitution
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 5

C. No, the acquittal means that the guilt of the accused was not proven by proof beyond
reasonable doubt
D. Yes, it is sufficient for him to prove the existence of the contract of carriage and the injuries
suffered.

31. 1st Statement - If the debtor promised to give to the creditor a house and lot located in Makati City if
the creditor decides to live there, the obligation is void.
2nd Statement - The expenses of consignation when properly made, shall be charged against the
obligee.
3rd Statement - The latin phrase “Faciout des” refers to a bilateral obligation to give
A. Only the 1st statement is correct
B. Only the 2nd statement is correct
C. Only the 3rd statement is correct
D. None is correct

32. The cause of loss is material to determine if the obligation of the debtor will be extinguished in which
of the following cases?
A. The debtor promised to give a generic thing
B. One of the prestations in an alternative obligation was lost
C. The obligation of the debtor is to pay money and the specific thing mortgaged to secure the
loan was lost
D. The obligation is facultative and the principal object was lost before substitution

33. In which of the following situations will compensation take place?

A. Bong owes Kiko P1m payable on March1, 2022. Kiko owes Bong1,000 sacks of rice worth P1m
on March 1, 2022.
B. Ping owes Willie P1m payable on March26, 2022. Willie owes Ping P1m due on Jan. 27, 2022
and today is Feb 28, 2022.
C. Tito owes Isko P1m. Sara is the Guarantor of Tito. Isko owes Sara P1m.
D. Lenny owes Manny 10 sacks of rice. Manny owes Lenny 10 sacks of rice.

34. Which of the following is true?

A. Novation may be presumed
B. Substitution in facultative obligations will result to novation
C. Novation may be implied
D. Dacion en pago is an example of novation

35. Tom promised to give his car to Jerry with the condition that_________; hence the obligation is valid.
A. Jerry commits suicide
B. Jerry kills Spike
C. Jerry will bring a live unicorn to Tom
D. Tom’s deceased father will not rise from the dead

36. Letlet and Potpot entered into a contract wherein Potpot will receive from Letlet a year 2022 model
car worth P1m and Potpot will give to Letlet a farm lot worth P1m. Which of the following is not a
correct group of characteristics of their contract?
A. Onerous, bilateral and principal
B. Bilateral, innominate and commutative
C. Onerous, commutative and consensual
D. Nominate, principal, bilateral

37. A contract where the parties give equal or almost equal values is known as:
A. Cumulative contract. C. Aleatory contract.
B. Compensatory contract. D. Commutative contract.

38. A contract giving a person the right, to enjoy the use and fruits of a thing belonging to another:
A. antichresis C. usufruct
B. sale D. commodatum
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 6

39. 1st Statement- The receipt of the interest shall give rise to a disputable presumption that the principal
loan has been paid.
2nd Statement - The receipt of a later installment of a debt without reservation as to prior
installments, shall give rise to a conclusive presumption that such installments have been paid.
A. False, True C. True, False
B. False, False D. True, True

40. The contract must bind both contracting parties.

A. Consensuality of contract C. Mutuality of contract
B. Obligatoriness of contract D. Relativity of contract

41. The following except one are characteristics of a contract:

A. liberty C. obligatoriness.
B. relativity D. consensuality

42. This is the accord or coincidence of the desires and intent of the parties to the contract upon the
subject matter and the cause.
A. Prestation C. Object
B. Consent D. Cause

43. Which of the following is not a limitation upon the right to contract?
A. Those contrary to third person C. Those contrary to law
B. Those contrary to morals D. Those contrary to public order

44. The first step in the different stages of a contract is:

A. Perfection. C. Consummation
B. Conception D. Performance

45. 1st Statement – When the thing improves pending the fulfillment of the suspensive condition with the
expense of the debtor, and the condition is fulfilled; said improvement shall inure to the benefit of the
creditor.
2nd Statement –The receipt of the principal loan shall give rise to a disputable presumption that the
interest earned has been paid as well.
A. 1st statement is wrong, 2nd statement is correct
B. 1st statement is correct, 2nd statement is wrong.
C. Both statements are correct
D. Both statements are wrong.

46. Mr. Vergara owes Mr. Fontanilla Php10M. Vergara knows that on maturity date, he will not be able to
pay Fontanilla, and in order to prevent attachment of his property, Vergara, before maturity of his
debt, executed a contract pretending to sell to Mr. Gomez his property. Which of the following
statements is incorrect?
A. Mr. Fontanilla can file a specific performance case against Mr. Vergara
B. Mr. Fontanilla can run after alienable and leviable properties of Mr. Vergara
C. Mr. Fontanilla can run after debtors of Mr. Vergara
D. Mr. Fontanilla cannot run after the property of Mr. Vergara sold to Mr. Gomez since he is a third
person based on relativity of contracts

47. If a creditor expressly remits the obligation of the debtor amounting to Php1m, such act must comply
with the formalities of the law on donations and must be:
A. Valid although oral so long as accepted C. In a public instrument
B. Recorded in the registry of properties D. Reduced in writing

48. Larry in a promissory note, promised to pay Yolly the amount of Php10ok with 5% interest on the
principalafter 30 days plus a penalty of Php10k if he fails to pay the obligation on due date. After due
date and several demands were made, Larry is liable to pay Yolly:
A. Php100k plus 5% interest plus Php10k plus damages
B. Php100k plus 5% interest plus Php10k
C. Php100k plus 5% interest
D. Php100k
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 7

49. 1st STATEMENT –In a joint obligation, the insolvency of one shall not make the other debtors liable
to pay his share
2nd STATEMENT – As a rule, the debtor will be in default if he does not perform his obligation on
due date.
A. 1st statement is true, 2nd statement false C. Both statements are false
B. 1st statement false, 2nd statement true D. Both statements are true

50. Liver Lover Boy, a jeepney driver, driving recklessly, caused serious physical injuries to his
passenger Baby Ama and pedestrian Asyong. As a result, which of the following is not correct?
A. Baby Ama may proceed against Liver Lover Boy for culpa criminal
B. Baby Ama may proceed against Liver Lover Boy for culpa contractual
C. Asyong may proceed against Liver Lover Boyfor culpa aquiliana
D. Asyong may proceed against the jeepney operator in case of insolvency of Liver Lover Boy

51. 1st Statement - If the resolutory condition depends upon the will of debtor, the obligation subject to it
is void
2nd Statement - In expromission, the insolvency of the new debtor shall revive the original debtor’s
obligation
3rd Statement - In delagacion, the insolvency of the new debtor can sometime revive the original
debtor’s obligation.

A. Only the 1st statement is correct C. Only the 3rd statement is correct
B. Only the 2nd statement is correct D. None is correct

52. Which of the following is not a personal property?

A. Business Franchise C. Young of animals
B. Water distributed by Maynilad D. Hanging bridge

53. Tito, Vic and Joey solidarily owe Bhong and Jhong Php3m.Bhong remitted the entire obligation in
favor of Joey. In this case:
A. The obligation is not extinguished until Tito and Vicpay Joey.
B. The obligation is not yet extinguished until Jhong is paid by Tito, Vic and Joey.
C. Joey cannot recover from Tito and Vic
D. Bhong can revoke the remission

54. 1st Statement- The voluntary acceptance by the creditor of a certified cashier’s check produces
payment.
2nd Statement - The creditor, as a rule, is not bound to accept payment or performance by a third
person, unless such person has an interest in the fulfillment of the obligation.
A. False, True C. True, False
B. False, False D. True, True

55. Which of the following is true?

A. In a contract of sale, if there is no period fixed for the performance of the obligations of the
parties, the buyer must wait for the seller to deliver before paying the purchase price
B. If a person has a natural obligation to another, the latter may wait for voluntary performance
and may keep whatever will be paid or delivered.
C. If the period is potestative on the part of the debtor, the creditor may wait for performance or
sue for collection anytime
D. If the period is not fixed in a bilateral obligation, the obligation is void.

56. Which of the following does not illustrate an obligation arising from culpa aquiliana?
A. Juan ordered James, a ten-year old boy, to climb a slippery tree, and promised to share with
him part of the fruits. James fell and was seriously injured.
B. Juan, Jose and James played baseball inside a parking lot where they accidentally broke the
windshield of a car when the ball landed on it
C. Jose failed to deliver his cat “Kuting” to James on the date stipulated because the cat died as
Jose forgot to feed it.
D. Jose fell asleep while driving his car which hit and seriously injured a bystander.

57. 1st Statement - If the suspensive condition depends upon chance or upon the will of a third person,
the obligation subject to it is valid.
2nd Statement - Condonation is generally gratuitous
3rd Statement - If a person obligated to give a specific thing fails to do it, the same shall be executed
at his cost
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 8

A. Only the 1st statement is correct C. Only the 3rd statement is correct
B. Only the 2nd statement is correct D. None is correct

58. 1st Statement- The debtor whose obligation is to deliver a specific thing cannot compel the creditor
to receive an object of the same kind.
2nd Statement - Whoever pays an obligationby way of delegacion may demand reimbursement from
the debtor what he has paid.
A. False, True C. True, False
B. False, False D. True, True

59. Which of the following illustrates a conventional obligation

A. The duty to pay taxes
B. The obligation to support one’s family
C. The burden of the owner to pay for damages caused by animals he owns
D. The obligation to pay the purchase price of things bought or purchased

60. Which of the following illustrates a legal obligation?

A. The obligation to pay the interest of a loan
B. The obligation to return what was received by mistake
C. The obligation to pay the salaries of employees
D. The obligation of partners to deliver their contributions to the partnership

61. Which of the following is false?

A. When the debtor is guilty of fraud in the fulfillment of an obligation, a creditor can demand
payment of damages and interests in addition to the penalty clause.
B. Those who in the performance of their obligations are guilty of fraud, negligence or delay will be
liable for damages
C. If the condition is potestative on the part of the creditor, the obligation is void
D. If the resolutory condition is potestative on the part of the debtor, the obligation is valid

62. Which of the following illustrates a real obligation?

A. Jose obliged himself to paint the house of Maria
B. Jose promised to finish the term paper of Juan
C. Juan promised to deliver the laptop of Maria to Jose
D. Maria obliged herself to return the car of Juan which she borrowed yesterday.

63. 1st Statement - An obligation to do suggests that the debtor will impart with an object
2nd Statement - Loss of a generic thing which is the object of an obligation, without the fault of the
debtor, extinguishes the debtor’s obligation.
3rd Statement - All rights acquired in virtue of an obligation are generally transmissible except when
prohibited by law or when prohibited by stipulation of the parties.
A. Only the 1st statement is correct C. Only the 3rd statement is correct
B. Only the 2nd statement is correct D. None is correct

64. Which of the following is true?

A. Solidarity cannot exist if the creditors and the debtors are not bound in the same manner and
by the same periods and conditions.
B. A solidary debtor is at all times entitled to reimbursement from his co-debtors if he pays for their
respective shares in the obligation
C. Indivisibility of the obligation does not render the debtors solidarily liable
D. A solidary obligation is one where the whole obligation is to be paid or fulfilled proportionately
by the different debtors and is to be demanded proportionately by the different creditors.

65. Which of the following is an accessory thing?

A. calf of a cow B. milk of a goat C. saddles of a horse D. bird feeds

66. Which of the following can be a valid object of a contract?

A. right to vote in a national election C. Philippines’ Monkey Eating Eagle
B. Mayon volcano D. Creditor’s right to demand payment

67. 1st Statement- If the obligation consists of giving, the creditor is entitled to the fruits and accessories
2nd Statement - Acquittal in the criminal case will excuse the accused from civil liability
A. False, True C. True, False
B. False, False D. True, True
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 9

68. Atoy, Boboy and Caloy executed a promissory note binding themselves to pay P9,000 to Axel, Bob
and Candy. The note is now due and demandable. Can the creditors proceed against Atoy alone for
the payment of the entire debt?
A. No, each creditor can collect only P3,000 from Atoy.
B. Yes, any of the three creditors can collect P9,000 from Atoy.
C. No, each creditor can collect only P1,000 from Atoy.
D. Yes, since the promissory note is silent with respect to the rights of the creditors, the obligation
is presumed to be solidary.
69. Which of the following obligations is valid?
A. Mr. Antonio obliged himself to give to Mr. Nakpil his brand new CR-V car if the latter can make a
circle that is at the same time a square.
B. Mr. Agcaoili obliged himself to give to Mr. Elorde his house and lot if the former wants to.
C. Mr. Reyes obliged himself to give to Mr. Santos a brand new Apple MacBook Pro laptop if Mr.
Santos will make a dead man live
D. Mr. Mateo promised to give Php1m to Mr. Martinez if the latter will not kill Jose

70. In the absence of an agreement to the contrary what shall be the basis of payment of an obligation in
case there should supervene, an extraordinary inflation or deflation of the currency stipulated?
A. The value of the currency at the time of the establishment of the obligation.
B. The value of the currency at the due date of the obligation.
C. The value of the currency shall be fixed by courts.
D. The value of the currency shall be determined by an expert from the Central Bank.

71. Paolo and Peter are liable to deliver a horse named “Pepito” valued at Pho100k to Petra on August
30, 2022. As a result:
A. Petra can demand performance of the obligation from Paolo and Peter.
B. The liability of is Paolo and Peter is solidary.
C. Petra can demand performance of the obligation from Paolo or Peter.
D. The liability of Paolo will be limited to the proportionate value of the horse without liability to pay
damages should Peter refuse to deliver the horse.

72. If during the pendency of the suspensive condition the specific thing subject of the obligation is
improved and the condition was subsequently fulfilled, which of the following is correct?
A. The improvement shall inure to the creditor whether or not the thing was improved by time or
through the expense of the debtor
B. If the debtor caused the improvement, he is entitled to be reimbursed
C. If the thing improves by time or nature, the debtor shall acquire the rights of a usufructuary
D. The debtor shall be entitled to remove such improvement provided it will not cause damage or
deterioration to the principal thing.

73. When the delivery of a specific thing is subject to a suspensive condition and if it is improved at the
expense of the debtor:
A. The creditor shall enjoy the improvement only after payment of just compensation.
B. The creditor shall have the right to enjoy the thing as well as its fruits.
C. The debtor shall have no other right than that granted to the usufructuary.
D. The debtor shall acquire the right over the thing.

74. In the promissory executed by Jose when he borrowed Php1m from Juan, it was written that the
obligation is due on July 31, 2022. Upon arrival of the designated date for payment, is demand
necessary in order that Jose shall incur in delay?
A. No because demand would be useless
B. Yes because the period is fixed to benefit the debtor
C. No because the parties stipulated
D. Yes because demand is necessary in order to put the debtor in delay

75. Which of the following obligations will not be extinguished by loss or destruction of a thing due?
A. When the thing is lost before the debtor has incurred in delay
B. When the obligation is to deliver a car with plate number XYZ 999
C. When the thing is lost through a fortuitous event
D. When the obligation is to deliver a brand new black apple XIII i-phone
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76. Larry owes Barry P100,000, guaranteed by Carrie. Barry assigns his credit to Darlyn. Darlyn
assigns her credit to Earl. Earl assigns his credit to Larry. The obligation is extinguished because of:
A. Compensation C. Novation
B. Merger of rights D. Rescission

77. 1st Statement - If the obligation is payable in foreign currency with specific rate of exchange, the
creditor can compel the debtor to pay in foreign currency and rate of exchange as per their
agreement.
2nd Statement - If the obligation is payable in foreign currency but the parties failed to agree as to
the rate of exchange, the rate to be used shall be the rate of exchange at the time of the perfection
of the contract.
A. Both statements are false.
B. Both statements are true.
C. First statement is true, second statement is false.
D. First statement is false, second statement is true.

78. 1st Statement – Negotiorum gestio and solutioindebiti are innominate contracts
2nd Statement - Negotiorum gestio and solutioindebiti are implied contracts
A. Both statements are false.
B. Both statements are true.
C. First statement is true, second statement is false.
D. First statement is false, second statement is true.

79. Which of the following of the following illustrates an obligation subject to a casual condition?
A. Apple promised to sell her house and lot in Cebu to Bubbles if the latter decides to live in Cebu.
B. Apple promised to give her car to Bubbles after the first sunset in year 2023
C. Apple promised to give Php1m to Bubbles if it will rain on December 1, 2022
D. Apple promised to give her laptop to Bubbles if Candy and Dave will marry each other and
Bubbles will become a CPA before end of 2022

80. Pauline obliged herself to pay Marie P150,000 as soon as possible. Two months later Marie
demanded payment but Pauline refused on the ground that the obligation is not yet due and
demandable. As a result:
A. Marie can go to court to ask for damages
B. Marie can go to court to fix the period of maturity of the obligation
C. Marie can go to court and sue Pauline for specific performance
D. Pauline’s obligation is extinguished

81. This refers to the obligation to pay for the consequential damages suffered by the injured person and
those suffered by his family or third person by reason of the act.
A. restitution C. indemnification
B. reparation D. restoration

82. 1st Statement – In culpa contractual the source of obligation is the breach of contract, in culpa
aquiliana the source of obligation is the negligence of the defendant
2nd Statement - In culpa aquiliana there is a pre-existing obligation, while in culpa contractual there
is none
A. Both statements are false.
B. Both statements are true.
C. First statement is true, second statement is false.
D. First statement is false, second statement is true.

83. If the period was established for the benefit of the debtor, the debtor shall lose such benefit in the
following cases, except if:
A. He does not furnish the creditor any guaranty or security.
B. He becomes insolvent unless he gives a guaranty or security for the debt.
C. The guaranty or security that he furnished is impaired through his own fault.
D. He attempts to abscond

84. Bing is obliged to give Bang 10 kilos of rice. Bang is obligated to give Bing 10 kilos of sugar. Which
of the following is not correct?
A. Their respective obligations are extinguished by compensation
B. If no period was fixed, no one will incur delay if none is willing or ready to perform the obligation
C. Both obligations cannot be fulfilled by a third person notwithstanding refusal on the part of the
debtor to perform
CRC-ACE/RFBT: First Pre-board Exams – October 2022 batch Page 11

D. Their respective obligations are extinguished by merger or confusion

85. Anday bound herself to deliver to Barbie the party gown she is supposed to wear on the celebration
of her 18th birthday on July31, 2022. Anday failed to deliver hence:
A. she has already incurred in delay
B. she will be excused by the happening of a fortuitous event
C. there was no delay because there was no demand
D. she must be sued by Barbie to be liable for damages

86. Bong obliged himself to give Biboy a specific car on July 10, 2022, stipulating that Bong is liable
even if the thing is lost due to fortuitous event and without the need of a demand. Which of the
following is correct?
A. In case the car is lost, Biboy can compel Bong to deliver another car
B. Demand is necessary to put Bong in delay
C. If a fortuitous event will destroy the car, Biboy can require another person to deliver a car with
expenses chargeable to Bong
D. If a fortuitous event will destroy the car, the obligation is not extinguished but converted into
monetary consideration

87. Which of the following illustrates a obligation subject to a resolutory condition?

A. Gabriel obliged himself to allow James to use a specific car until James passes the CPA board
exams.
B. Gabriel obliged himself to give Andrei his laptop after the first rain in 2023
C. Gabriel obliged himself to allow Jose to use a specific calculator until the end of 2022
D. Gabriel obliged himself give Asil a brand new car if Asil will marry Asley.

88. Pedro agreed with his creditor Jose, that in case the former fails to pay his loan, he will serve as a
servant in the house of Jose for three (3) years without any salary or remuneration. Which of the
following statements is correct?
A. An action for damages should be brought by Jose in case of non-compliance by Pedro of their
stipulation
B. The stipulation is valid if there is no vice of consent
C. The stipulation is void for being contrary to law and morals
D. Specific performance of the service will be the proper remedy in case of non-compliance.

89. 1stStatement – Merger which takes place in the person of the principal debtor or creditor benefits the
guarantors
2ndStatement – Confusion which takes place in the person of the guarantors does not extinguish the
obligation
A. Only the 1st Statement is true
B. Only the 2ndStatement is true
C. Both Statements are true
D. Both statements are false

90. Asyong has two creditors, Bosyo for Php1m and Dodong for Php2m. Later, with the consent of
Asyong and Bosyo, Bekang pays BosyoPhp1m. Asyong became insolvent. How should the
remaining assets of Asyong be distributed?
A. Dodong should be preferred
B. Bekang Should be preferred
C. Intent of Asyong should prevail
D. Dodong and Bekang should be paid proportionately

91. Asyong and Bosyo sold 1,000 sacks of rice to Carl and Daryl and, on Carl’s request delivered them
to him. Later Carl resold the rice without turning over any part of it or its price to Daryl. Daryl can
compel Asyong to deliver to him:
A. 1,000 sacks C. 250 sacks
B. 500 sacks D. value plus damages

92. Which of the following is incorrect?

A. The creditor has a right to the fruits of the specific thing subject matter of the obligation from the
perfection of the contract if the obligation is pure
B. The creditor has a real right to the fruits of the specific thing subject matter of the obligation from
the time the fruits are physically or constructively delivered to him
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C. The creditor has a real right to the fruits of the specific thing subject matter of the obligation from
the time the obligation to deliver the principal thing arises
D. The creditor can transfer his right to receive the principal

93. 1st Statement – “I will give you my car, but you should not marry Maria this year”
2nd Statement – “I will give you my car, but you should marry Maria this year”
A. Both obligations are subject to resolutory conditions
B. Both obligations are subject to suspensive conditions
C. Only the first obligation is subject to resolutory condition
D. Only the second obligation is subject to resolutory condition

94. There is novation of the obligation if:

I. The period for payment is shortened from 5 years to 3 years
II. The period for payment is extended from 3 years to 5 years
A. True, true
B. True, false
C. False, true
D. False, false

95. An obligation where only one prestation has been agreed upon is called:
A. Simple obligation C. Pure obligation
B. Unilateral obligation D. Facultative obligation

96. Whenever in an obligation a period is designated, it is presumed to have been established for the
benefit of:
A. both the creditor and the debtor C. the debtor
B. the creditor D. the third party

97. When the thing deteriorates pending the fulfillment of the suspensive condition without the fault of
the debtor, the impairment is to be borne by:
A. both the creditor and the debtor C. the debtor
B. partly by the debtor and partly by the creditor D. the creditor

98. Atoy is under obligation to deliver his Toyota Alphard to Caloy. However, before delivery Bitoy
destroys the car. Which of the following is not correct:
A. Atoy’s obligation to give his car to Caloy is extinguished
B. Atoy is allowed to recover from Bitoy
C. Caloy has the right to bring an action against Bitoy
D. Atoy is not obliged to give Caloy an equivalent value of the car

99. When the debtor binds himself to pay when his means will permit him to do so, the obligation is:
A. Simple but void
B. Pure and valid
C. With a period and valid
D. Conditional but void

100. This is the deposit of the thing due made by the debtor in lawful form, whenever the creditor refuses
or cannot accept payment.
A. Commodatum. C. Consignation
B. Deposit D. Pledge

end of exams

mrs/cde07162022
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101. Which of the following is true?

A. Industrial fruits are those produced by lands of any kind through cultivation.
B. Quasi-delicts are certain lawful, voluntary and unilateral acts which give rise to a juridical
relation to the end that no person may unjustly enrich himself at the expense of another
C. The fulfillment of a resolutory condition shall as a general rule give rise to an obligation
D. A period depending upon the sole will of the debtor will invalidate the obligation

102. Which of the following is not an obligation of a debtor obliged to deliver a specific car?
A. To deliver the accessories
B. B To observe the diligence of a goof father of a family
C. To pay damages incase of delay
D. To deliver another car in case of loss through the fault of the debtor

103. Which of the following does not fall under the principle of solutio indebite?
A. A debtor paying the loan mistakenly believing it is already due
B. A person receiving a delivery of a parcel he did not order
C. A customer who was given a 50 peso bill when his change is only 20 pesos
D. A person receiving voluntary payment of an obligation which as prescribed but the debtor won
the lottery and wished to pay all his creditors

104. An action for the rescission of contracts entered into by debtors to defraud creditors.
A. accion publiciana C. accion pauliana
B. accion quantiminoris D. accion reinvidicatoria