. ALTERNATE RESPONSE. Write "TRUE" if the statement is correct, and write "FALSE" if otherwise.

1. If an insolvent solidary debtor cannot reimburse his share to the debtor paying the obligation, such share

shall be borne by all his co-debtors in proportion to the debt of each.

2. In a joint indivisible obligation, a demand made by one of the joint creditors against all the joint debtors is a

valid demand.

3. Payment made in good faith by the debtor to a person in possession of the credit releases him from the

liability.

4. For dacion en pago to apply, the debtor must be insolvent.

5. Payment made for an obligation which is interest-bearing must first be applied to the principal before the

interest.

6. A third person who has an interest in the fulfillment of the obligation, such as a guarantor, may compel the

creditor to accept payment.

7. Before the court has declared that the consignation has been properly made or the creditor has accepted

the consignation, the debtor may withdraw the sum or thing deposited in court as a matter of right.

8. Whenever the thing is lost while in possession of the debtor, it shall be presumed to have been lost through

his fault.

9. The condonation of a debt in money exceeding P5,000.00 to be valid requires that the condonation and theacceptance must be in public instrument.

10. Consignation without tender of payment is sufficient if two or more persons claim the same right to collect.

11. Confusion which takes place in the person of the guarantor extinguishes the principal obligation.

12. Novation may take place by changing the object or principal conditions of the obligation.

II. MULTIPLE CHOICE. Choose the letter of the BEST answer.

1. One of the following does NOT apply to dacion en pago. Which is it?

A. Ownership of the debtor's properties is transferred to the creditor.

B. The debtor must be insolvent.

C. It does not affect all the properties of the debtor.

D. It does not require plurality of creditors.

2. The delivery to the creditor of mercantile documents such as checks shall produce the effect of payment:

A. Upon delivery.

B. When they have been cashed.

C. When through the fault of the debtor they have been impaired.

D. When they are deposited in the bank.

3. Yannica and Frances are jointly and severally liable to Sheila for P20,000. Yannica is a minor.

A. Sheila can collect P20,000 from Frances.

B. Sheila can collect P10,000 from Yannica, that is the share of Frances.

C. Sheila can collect P20,000 because minority is not a defense.

D. Sheila can collect P10,000 from Frances.

4. In a joint obligation, Nelson, Julie, and Airish are debtors of joint creditors, Ashley, Joveline, and Garry in

the amount of P180,000. Nelson's obligation is:

A. Pay Ashley P60,000.

B. Pay Ashley, Joveline and Garry P180,000.

C. Pay Ashley P120,000.

D. Pay Ashley P20,000.

5. Avegail, Chinee, and Jessa obliged themselves to give Mariel a specific car valued P300,000. If Mariel

demanded payment to all, Avegail and Chinee are willing to deliver, but Jessa is insolvent, how much will

Avegail pay Mariel?

A. P100,000

B. P150,000

C. P300,000

D. P200,000

6.Jessica owes Darlene the following debts: P5,000 due on January 1; P7,000 on January 5; P8,000 due on

January 10; P10,000 due on January 15; and P5,000 due on January 20. By agreement of the parties,Jessica was given the benefit of the period. As of January 17, Jessica has not paid any of the debts. He has P5,000 which she wants to remit to Darlene. Assume that Darlene did not designate the debt to whichthe payment shall apply. In such case:

A. Payment shall be applied proportionately to the five debts.

B. Payments shall be applied proportionately to the four debts that have become due as of January17.

C. Payment shall be applied only to the debt due on January 1 since it is the first debt that has become

due.

D. Payment shall be applied proportionately to the debt due on January 1 and January 20 since the

amount of each debt is of the same amount as the payment.

7. Marmi, Allia, and Jenlyne are solidary debtors of Edna, Claiza, and Hannah, solidary creditors, in the

amount of P2,700. Edna renounces the whole obligation without the consent of Claiza and Hannah. The

debtors accepted the renunciation.

A. The whole obligation is extinguished.

B. Only P900 is extinguished.

C. No part of the obligation is extinguished because not all the creditors consented to the renunciation.

D. Only P300 is extinguished.

8. Toni is obliged to deliver a specific Toyota car to Erika. The parties agreed that should Toni so desire, she

may deliver her only Lancer car to Erika as a substitute. Before Toni could make any substitution, the

Lancer car was damaged beyond repair through the fault of Toni.

A. Toni's obligation to deliver the Toyota car is extinguished.

B. Toni is obliged to pay damages to Erika for her inability to deliver the Lancer car.

C. Toni is still obliged to deliver the Toyota car to Erika on due date.

D. Toni is obliged to get another Lancer car as a substitute.

9. Chrismer, husband, and Kimberly, wife, are legally separated. By order of the court which decreed the legal

separation, Chrismer is obliged to give a monthly support of P10,000 to Kimberly payable within the firstfive days of the month. Kimberly owes Chrismer P10,000 by way of a business loan. On the other hand,Chrismer has not yet given Kimberly's support of P10,000 for this month. Both obligations are already due.

Which of the following statements is correct?

A. Both obligations are extinguished by legal compensation because both are already due.

B. Kimberly may claim compensation but not Chrismer.

C. Chrismer may claim compensation but not Kimberly.

D. Neither one may claim compensation because the obligations are not of the same kind.

10. Candyd bought a plane ticket for Hong Kong from Wings Travel Company. Later, however, Candydcancelled her flight to Hong Kong because of the SARS epidemic in the place. Upon being informed of thecancellation, Wings Travel said to Candyd that she could get the refund of her plane ticket within two days.In the meantime, Candyd thought of going instead to Australia so she called Wings Travel to send to herthe ticket in two days. Assuming that the refund due to Candyd for her unused plane ticket to Hong Kong isof the same amount as the cost of his plane ticket to Australia, Candyd two days later need not pay WingsTravel by reason of:

A. Confusion

B. Novation

C. Compensation

D. Condonation

11. Nia executes a promissory note in favor of Robe and the promissory note is negotiated by Robe and

subsequently is indorsed in favor of Nia. The obligation to pay the promissory note is thereby extinguished

because there is:

A. Confusion or merger

B. Novation

C. Remission

D. Answer not given