Test Bank : Law on Obligation

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BUSINESS LAW QUIZ ON OBLIGATION –PART I 1. Whenever in an obligation’s designated, it is presumed to have been established for the benefit of: a. Both the creditor and debtor c. The debtor b. The creditor d. The third party 2. A owes B P10, 000. C pays B P5, 000. Now B and C are the, creditors of A to the amount of P5, 000 each. Suppose A has only P5, 000.Which is correct: a. B and C should divide the P5, 0000 equally c.A may choose whom to pay b .C should be preferred d.B Should be preferred 3. X is under obligation to deliver Y’s car to the latter. However before delivery Z destroys the car. Which one of the Following is correct? a. X’s obligation to give the car to Y extinguished b. X is allowed to recover from Z c. Y has the right to bring an action against Z d. X is not obliged to give Y an equivalent value of the car 4. XYZ are solidarily liable to A for P30, 000 which matures on July 1, 2001.On May 1, 2001, X paid A for the whole amount of debt. If on December 1, 2001, X will be reimbursed by Y, the latter will liable for: a. P10, 000 with the interest from July 1, 2001 to December 1, 2001 b. P10, 000 without interest c. P10, 000 with interest from May 1, 2001 to July 1, 2001 d. P10, 000 with interest from May 1, 2001 to December 1, 2001 5. A, B and C owe solidarily creditors X and Y P30, 000.X remitted the entire obligation in favor of A. The effect is: a. The obligation is not extinguished until a collect from B and C b. The obligation is not extinguished until Y is paid by X his share of the credit c. A cannot recover from B and C because remission in his favor extend to the benefit

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