A, b, and c are solidary debtors of x in the amount of p30,000. c was insane. x may –

A, B, C, and D are obliged to give V, W, X, Y and Z P20,000.

a. V may collect from A P20,000
b. V may collect from A P5,000
c. V may collect from A P1,000
d. V may collect from A P4,000

A, B, C, and D, joint debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P20,000.

a. V may collect from B P20,000
b. V may collect from B P5,000
c. V may collect from B P1,000
d. V may collect from B P4,000

A, B, C, and D, solidary debtors, are obliged to give V, W, X, Y and Z, joint creditors, P20,000.

a. V may collect from C P20,000
b. V may collect from C P5,000
c. V may collect from C P1,000
d. V may collect from C P4,000

A, B, C, and D, solidary debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P20,000.

a. V may collect from C P20,000
b. V may collect from C P5,000
c. V may collect from C P1,000
d. V may collect from C P4,000

G sold a parcel of land belonging to his ward, B, for P300,000 when its market value is P800,000. Subsequently, B sold the said parcel of land to X, a buyer in good faith. Can the ward file an action for the rescission of the contract of sale between G and B upon reaching the age of majority?

a. Yes, because he suffered lesion of more than one-fourth.
b. Yes, because the guardian acted in bad faith.
c. No, because the object of the contract is already in the legal possession of a third person.
d. No, because the contract between B and G had been consummated.

The car of D was mortgaged to C to secure the loan, which is payable on January 30, 2021. On January 1, 2021, the car of D was burned without his fault. On January 3, 2021, C demanded for the payment of D's loan. Is the demand valid?

a. Yes, because the obligation becomes demandable when the security is lost.
b. Yes, because C is the active subject.
c. No, because the loan is not yet due.
d. No, because the car was lost due to a fortuitous event.

D went to the residence of C to pay his obligation amounting to P100,000. He was informed, however, that C was confined in the hospital. D paid his obligation to C's brother, who went to the hospital and spent the amount for C's hospital and medical expenses. One week after the release of C from the hospital, C demanded payment of D's obligation, but D told him that he had already paid his obligation to C's brother. Is the payment of D to C's brother valid?

a. No, because payment should be made only to the creditor.
b. Yes, because his payment to C's brother redounded to the benefit of C.
c. No, because payment to a third person is not valid.
d. Yes, because C's brother is considered authorized to receive payment for him.

a) On January 1, 2020, Aly, Czy and Jarl promised to deliver to Zoe a specific phone or a specific tablet or P30,000 when their means permit them to do so. The parties also stipulated that the right of choice was designated to Zoe and that any breach in the compliance of the obligation will entitle Zoe to a penalty of P10,000. Pending the
communication of choice, the phone was lost due to fortuitous event while the tablet exploded when Jarl left it charging overnight. On January 15, 2020, Zoe communicated her choice and asked the amount of P30,000 to be delivered. She then asked the court to set a period and was duly fixed on August 31, 2021.

I. Supposing Zoe became indebted to Aly for P10,000 due on August 31, 2020, legal compensation would automatically set in.
II. If Zoe condones the share of Jarl to the obligation, the obligation shall be extinguished.

a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false

MIDTERM EXAMINATION OBLIGATION 1. D is obliged to deliver 5 bags of powder soap to C 7 days from their agreement. On due date, D delivered 5 bags of powder soap mixed with chalk. What is the status of the agreement between D and C? Answer: The agreement is valid. The fraud was committed during the performance of the obligation and not during the agreement of the parties. Explanation / Verification: INCIDENTAL FRAUD (applicable provisions are Arts. 1170 & 1344) - committed in the performance of an obligation already existing because of a contract; incidental fraud obliges the person employing it to pay damages. - which refers to that occurring in the performance of a contract, without affecting its validity CAUSAL FRAUD (Art. 1338) - employed in the execution of contract in order to secure consent; remedy is annulment because of vitiation of consent although it may also give rise to an action for damages. - affecting the validity of the contract (14007472-OBLICON-Reviewer)

2. D is obliged to give C a specific watch, a specific ring or a specific bracelet. The parties agreed that C will have the right to choose the thing which will be given to him. Before C could make his choice, the watch and the ring are lost through D’s fault, successively. What is the right of C? Answer: C may choose the delivery to him of the bracelet, or the price of the watch or the price of the ring plus damages. Explanation / Verification: ALTERNATIVE OBLIGATIONS When right of choice is expressly granted to the creditor (Art. 1205) a. If only one or some are lost through a fortuitous event, the debtor shall deliver that which the creditor should choose among the remainder, or that which remains if only one subsists. subsist (law) - remain in being (existence), force, or effect

b. If all are lost through a fortuitous event, the obligation shall extinguished c. If only one or some are lost through the debtor’s fault, the creditor may claim any of those subsisting, or the price of any of those which were lost through the debtor’s fault plus damages.

d. If all are lost through the debtor’s fault, the creditor may claim the price of any of them plus damages. (Notes in Business Law, Fidelito R. Soriano) 3. A,B,C and D are obliged to give X, Y and Z P12,000. X may collect from A how much? Answer: P1,000. When the obligation is silent, it is presumed joint.

Explanation / Verification: 12k Joint Debtors 3k A 3k B 3k C 3k D

Joint Creditors X 4k Y 4k Z 4k

X, as a joint creditor, may collect only 1,000 to A,B,C and D (proportionate share)

4. A, B, C and D, joint debtors are obliged to give X, Y, and Z, solidary debtors, P12,000. If D is insolvent, how much may X collect from A? Answer: P3,000. As a solidary debtor, X may collect the whole amount owed by A. Explanation / Verification:

12k Joint Debtors 3k A 3k B 3k C 3k D

Solidary Creditors X 4k Y 4k Z 4k

Joint obligation - walang pake sa kasama niya kahit insolvent pa yan. X, as a solidary creditor, may collect the whole amount owed by A, P3,000.

5. A, B, C and D, solidary debtors, are obliged to give X, Y, and Z, joint creditors, P12,000. How much

may X collect from A, if B is insolvent? Answer: P4,000. As a joint debtor X is entitled only to his proportionate share, and A being a solidary debtor may be required to pay the said amount.

Explanation / Verification: 12k Solidary Debtors 3k A 3k B 3k C 3k D

Joint Creditors X 4k Y 4k Z 4k

Diba nga pag joint , walang pake sa kasama niya ; joint creditor – kokolektahin niya lang yung perang sa kanya. The total debt of the solidary debtors is still 12k. Being insolvent is not a DEFENSE (it does not state in Article 1222), P3, 000 is not extinguished. Hence, the insolvent debtor will shoulder by the other co-debtors. 6. A,B,C and D, solidary debtors, are obliged to give X,Y and Z, solidary creditors, P12,000. How much may X collect from A? Answer: P12,000. X being a solidary creditor may ask for the payment of the whole amount in behalf of his co-creditors subject to a responsibility of X to give the latter their corresponding shares. Similarly, A as a solidary debtor may be required to pay the whole amount of the obligation subject to reimbursement from his co-debtors. Explanation / Verification: Solidary obligation – all amount may be collected. 7. A, B and C are solidary debtors of X, Y and Z, solidary creditors, in the amount of 2,700. X renounces the whole obligation without the consent of Y and Z. The debtors accepted the renunciation. What is the legal effect of the renunciation? Answer: The whole obligation is extinguished, however X shall be liable to the corresponding shares of the other co-creditors as they have agreed upon. Explanation / Verification:

The remission made by any solidary creditor extinguishes the obligation even without the consent of cocreditors (Art. 1215). However , the solidary creditor has to give co-creditor’s share since a solidary creditor may not do anything prejudicial to his co-solidary creditors. (Art. 1212). A solidary creditor who has the caused the extinguishment of the obligation by remission , novation , compensation or confusion , or who has collected the debt, shall be liable to the others for the share corresponding to them, (Art. 1215) .Condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly (Article 1270) Inaacept ng debtor, the whole obligation extinguished, but X shall be liable to the corresponding shares of the other co-creditors.

8. A, B , and C are solidary debtors of X in the amount of P3,000. X renounces the share of A and A accepts the renunciation. Thereafter B becomes insolvent. What is the legal effect of the renunciation? Answer: A will be liable for P500, while C will be liable for P1,500. Since the remaining obligation is P2,000 after the renunciation of A’s share, and thereafter B becomes insolvent. Explanation / Verification: 3k 2k Solidary Debtors 1k A 1k B 1k C

Creditor X 3k 2k

3,000 – 1,000 (renounce the share of A) = 2,000 A : 0 + 500 B: 1,000 (insolvent) C : P1,000 + P500 Since the remaining obligation is P2,000 after the renunciation of A’s share , and thereafter B becomes insolvent , A and C would have to absorb the debt corresponding to B in the amount of P1,000. This shall be divided equally by A and C. If one of the debtors is insolvent and could not pay his share in the obligation, all solidary debtors including the paying debtor shall share proportionately in the settlement of the corresponding share of the insolvent debtor. [In short, his co-debtors will save his ass. (Art. 1217)

9. A, B and C are solidary debtors of X in the amount of P30,000. C was insane at the time the obligation was constituted. What is the legal effect? Answer: X may collect from either A or B P20,000. Such defense is personal to C and would therefore affect only the part of the debt to which C may be responsible. Explanation/ Verification: Article 1222. A solidary debtor may, in actions filed by the creditor, avail himself of all defenses which are derived from the nature of the obligation and of those which are personal to him, or pertain to his own share. With respect to those which personally belong to the others, he may avail himself thereof only as regards that part of the debt for which the latter are responsible. DEFENSES OF A SOLIDARY DEBTOR: 1. Defense arising from the nature of the obligation – such as payment, prescription, remission, statute of frauds, presence of vices of consent, etc. 2. Defenses which are personal to him or which pertains to his own share alone – such as minority, insanity and others purely personal to him 3. Defenses personal to the other solidary creditors but only as regards that part of the debt for which the other creditors are liable. It is stated in Article 1222, that the insane person, as a solidary debtor, has a defense. The 10,000 debt of C will be extinguished.

10. A,B and C are obliged to deliver a specific horse to X, Y and Z. What would be the legal effect when C cannot comply with his obligation? Answer: This is a case of a jointly obligation, A and B may comply with the obligation Explanation/ Verification: JOINT INDIVISIBLE OBLIGATION – an obligation where solidarity is not provided and the prestation or object is not susceptible of division; its fulfillment requires the concurrence of all debtors, while doing each one’s parts. The act of one is not binding (others must concur)

11. D obtained a loan of P10,000 from C who was in his right mind at the time he granted the loan. On due date, D paid his obligation of P10,000 to C who had since become insane. C lost P4,000 of the amount he received and spent P6,000 for his food and other necessary expenses. Was the obligation extinguished?

Answer: The obligation is extinguished up to P6,000 only Explanation/ Verification: Payment an obligation to an incapacitated person shall be valid when the person has kept the thing delivered and only insofar (to the extent that) as the payment beneficial to him . (Article 1241)

A and B are indebted to X and Y for 10,000 . A and B share in the debt in the ratio of 1:3 while X and Y share in the credit in the ratio of 2:3. 12. How much may X collect from A if the debtors are joint debtors, while the creditors are joint creditors? Answer: P1,000. There as many debts (credits) as debtors (creditors)

Explanation/ Verification: 10k Joint Debtors 2,500 A 7,500 B

Joint Creditors X 4k Y 6k

Proportionate share of A: P10,000 ¼ x = 2,500 Use the ratio of joint creditors 2:3 for collection Collection to A X : 2,500 x 2/5 = 1,000 Y: 2,500 x 3/5 = 1,500 Collection to B X : 7,500 x 2/5 = 3,000 Y : 7,500 x 3/5 = 4,500

13. In same scenario, how much may X collect from A if there is active solidarity? Answer: P2,500. The whole amount of the proportionate share of A could be collected by X.

Explanation/ Verification:

10k Joint Debtors

Solidary Creditors

2,500 A 7,500 B

X 4k Y 6k

Kapag joint debtors yung inutang nila yung babayaran lang nila. The whole amount of the proportionate of share of A could be collected by X. As a solidary creditor , X may collect the whole amount of the obligation corresponding against one or more debtors.

14. Still the same scenario, how much may X collect from A if there is passive solidarity? Answer: P4,000. Being a joint creditor ,X can collect only his corresponding share in the credit.

Explanation/ Verification: 10k Solidary Debtors 2,500 A 7,500 B

Joint Creditors X 4k Y 6k

Being a joint creditor , X can collect only his corresponding share in the credit . The full amount could be collect to A, being a solidary debtor 15. Lastly, how much may X collect from A if there is mixed solidarity? Answer: Any amount Explanation/ Verification: Mixed Solidarity – solidarity on the part of the debtors and creditors where each one of the debtors is liable to render and each one of the creditors has a right to demand, entire compliance with the obligation. https://www.coursehero.com/file/p2k42ek/Passive-solidarity-on-the-part-of-the-debtors-whereanyone-of-them-can-be-made/ Since there is mixed solidarity, any amount of obligation may be collected by any of the solidary

creditors against any of the solidary debtors. 16. D owes C P10,000. T offers to pay D’s obligation and tells D that D need not reimburse him. However, D does not give his consent to T’s offer not to be reimbursed. C, nonetheless, accepts the payment from T. What is the effect of the payment? Answer: The payment is not valid. Explanation/ Verification: Article 1238. Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires the debtor’s consent. But the payment is in any case valid as to the creditor who has accepted it. *Payment by a third person who does not intend to be reimbursed – article 1238 “embodies the idea that no one should be compelled to accept the generosity of another. Example: D owes C P10,000. Without the intention of being reimbursed, S paid D’s obligation. D had previously accepted S’s generosity. https://www.coursehero.com/file/10936920/oblicon/ 17. D borrowed P10,000 from C with G as a guarantor. Subsequently, D paid C P2,000. Unknown to D, T a third person paid C P10,000 believing that D still owed C such amount. What is the legal effect of the payment by T? Answer: T can recover P8,000 from D, only the amount to which the creditor has benifited could be reimbursed to the third person paying if the payment was without the knowledge of the debtor. If D cannot pay, T cannot go after G to collect. Explanation/ Verification: Article 1236 The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation, unless there is a stipulation to the contrary. Whoever pays for another may demand from the debtor what he has paid, except that if he paid without the knowledge or against the will of the debtor, he can recover only insofar as the payment has been beneficial to the debtor •  Generally, the 3rd person who paid another’s debt is entitled to recover the full amount he paid. The law, however limits his recovery to the amount by which the debtor has been benefited, if the debtor has no knowledge of, or has expressed his opposition to such payment 18. D owes C the following debts: P4,000 due on May 1; P 4,000 due on May 8; P4,000 due on May 15; P4,000 on May 22; P4,000 due on May 29; and P4,000 due on June 5. The debts are represented the price of magazines which were delivered to D on a weekly basis. Of the six debts, the one due on May 22 is secured by a pledge of D’s ring. By agreement of the parties. C may demand payment even

before the due date of the debt. As of May 31, D had not paid any of the six debts. On May 31 ,D wanted to make payment, but he had only P4,000. How is the payment to be applied? Answer: P4,000 on May 22 should be applied.

Explanation/ Verification: Since no agreement as to which debts should be settled first and absent the fact that the creditor has not issued any receipt applying the amount of the debts to which the debtor has not protested and there was no cause of invalidating the same , and the period is for the benefit of the creditor then the P4,000 shall be applied to the one due on May 22 since it is most burdensome. If neither D nor C applies the payment , payment shall be applied proportionately to the debts due on May 1 , May 8 , May 15 , May 22 and May 29 at P800 each. In case the debt due on May 22 is secured by a pledge , then payment shall be applied to such debt because it is the most burdensome to him.

19. D owes C P50,000. Subsequently, D proposed to C that T will assume his (D’s) debt. C accepted the proposal of D. On due date, T could not pay because of his insolvency which was in fact existing but was not know to D or of public knowledge at the time that he delegated his debt. Can C hold D liable? Answer: C cannot hold D liable because his (D’s) obligation was extinguished when he was substituted by T. Explanation/ Verification: Article 1295. The insolvency of the new debtor, who has been proposed by the original debtor and accepted by the creditor , shall not revive the action of the latter against the original debtor, except when said insolvency was already existing and of public knowledge , or known to debtor to the debtor , when he delegated his debt. (1206a)

20. D owes C P30,000 due on June 20. C owes D the following debts: P15,000 due on June 2; P4,000 due on June 14; P6,000 due on June 16; and P3,000 due on June 18. On June 17, C assigned his right to X. C notified D of the assignment but D did not give his consent thereto. How much may X collect from D on June 20? Answer: P5,000. Since the assignment is without consent of D.

Explanation/ Verification: Since the assignment , although with knowledge , is without the consent of D therefore compensation shall take place but only to the debts prior to the assignment . (1285 par 2 )

In this case , X ,may collect from D P5,000 because D can set up compensation with respect to the debts due on June 2 (P 15,000) , June 14 (P4,000) and June 16 (P6,000) which had already matured at the time of the assignment. 30,000 – P15,000 - P 4,000 -P6,000 = P 5,000

II. 1. Obligations derived from law are presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them Answer: False Explanation/ Verification: Article 1158. Obligations from law are not presumed. Only those (1) expressly determined in this code or (2) in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this code.

2. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith Answer: True Explanation/ Verification: Article 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.

3. The obligation to give a determinate thing does not include that of delivering all its accessions and accessories, even though they may not have been mentioned. Answer: False Explanation/ Verification: Article 1166. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned. 4. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation Answer: True Explanation/ Verification: Art. 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially

or extrajudicially demands from them the fulfillment of their obligation. However, the demand by the creditor shall not be necessary in order that delay may exist: (1) When the obligation or the law expressly so declare; or (2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the contract; or (3) When demand would be useless, as when the obligor has rendered it beyond his power to perform. In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins. (1100a)

5. Those who in the performance of their obligations are guilty of fraud, negligence, delay and those who in any manner contravene the tenor thereof, are not liable for damages Answer: False Explanation/ Verification: Art. 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. (1101) 6. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is valid. Answer: False Explanation/ Verification: Art. 1171. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a) 7. The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that the said interest has been paid. Answer: True Explanation/ Verification: Art. 1176. The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid. The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid. (1110a) 8. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises Answer: True

Explanation/ Verification: Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. (1095) 9. If a person obliged to do something fails to do it, the same shall be executed at his cost. Answer: True Explanation/Verification: Art. 1167. If a person obliged to do something fails to do it, the same shall be executed at his cost. This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone. (1098) 10. When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also not be undone at his expense. Answer: True Explanation/Verification: Art. 1168. When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense. (1099a)

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