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~.'he ftevi~v.T School of Account:mcy •

'itTte .. N•J. 735-9o07 & 734-3939" •

BUSINESS LAW 21 July 2013 (Sunday)

s . .
First :t>re-Poard Excuu.r.at1on 3:30 P.M. 5~00 P.M.

INSTRGC'l'ION::i. ~Sec1ect tlle
a,'swcr for each of the fcllowing cc1 r2ct
ci: e'stion.:;. L~{ only on?
for c:ac.:h item by 1:.he box an~w,o;r
c'.:..nresponcf._i;,,_: to t:he let.t2r of you1.· choice on the sheet provided.
STRICTLY NO F.RASDRE$ ARE _ULOTifED. Use 'pei1Ci]. no. 2 0"1ly. - - - - - -

1:·1 ca:>= of c.ioutt, a cr_,n·~l"ac~ ;::>u:.::po.ct.i.nq to oe sale ::;hal2.. be construed as
l_rl ,J..l!l~Lrner::__ o: contracts, ~h rR sh?.ll always oe rr.u'=.Jal .,:estit·ltion of
:) u := r: p ~l r t~ _:._ \ ~~ :~ the Leo i . o
r' -·, ,;~_dten,ent: .l.:o falsr•; second is ':.rue
~- Bc':.h 1re ~alse
r Bo~h ar~ ~rue

d. flLSt st3temenc is tru~; second i; false

2. Statem.c:ont:s: .
c:;ust voldahl-:: c.nd unenfo:..ceable contracts, .:::escis:.;ibl.= cor;tracts may
also~~ .:::~tlf.:::~d.
n cas·~ o; 't:d.G.d or, ti:.e ac~ion for i'ln:J.ulment must be :nade within
~c,;._E ~--,a: :" the cormrns:..;io:-1 of the vice of c-~;nsent.
i~, (- :=: : :: ,_i i._ e ~n e n t s c~ L e t r uc
b. 'Cot:. "rcc: false
true; second ts fd se
d.· ~alse; secon~ is true

3. D, fcarlJJu 1.h'Ctt his crEclito.· r;, would go Cltter his only p<:1rcel o'= lap.d to
SG.ti:,'; ;,, .:lalm fer. ;>ayrent of D's debt, so-:..d his saici ::..and to }.,.'who did
not kn-:.-"· o. D' .s ll!tenti0J:.
a. ca;. ·"·;k for a'1nulment c. E che sale as this is voidable conc_rar:.t.
b. ma 1 ..1·. :: for damage::;_ a(Ja.::.TJst X ::,incE: h~ was damagerl. by t.he sale.
c. CccL t.\le an action-for .:::F>scission of the .:;ale.
:..l. C car:•1ot .1sk .:=c'r the rescission of the ~ale.

!J. 2taternenc.s:
Mc1Lua1 error as t0 the legal affec:t of an agreeme:1t wnen tne pu.rpose cf '.:he
parti"'s .:..:-; ".custrateC. niay r"sult in the reforma-tion of the instrument.
H1tual l"'lisL' ':e of the ;x:tr~i:s and the ir>strU!IIefit does not exuress the t.rue
a·;reement v..-_L '.. :Jctke tr.e contcac::. voidab.i.<>.
' Got'. .s· .tternF:nts are fills~
:Jot.~ dL--· true
FlrS':. ~-s true; second _s fa 1 se
d. ~'.irst f2lse: seconct " true

s. A 1•ithout:. ;:,uth,Jrity ·from B sold tf:.c' .s car in ':he· name of the
latter. The co:-.~tr"'.ct is trterefore: .. •
3. Rescis~:2.ble

b. Vo2.daj:~'"
c. Urentorceable
c3. Vo1d
ReSA: The Re\'lfw Sdiool of A:co~m:.ancy Page 2 of 8

6. A threatened B •o~i+-.h an ad."T.inJstrati're cha.g~ for i,Tmorali.t.y i f t:<e laCte::

does no•: 'na::ry her beca~1se she .is already_r::egnant with tllr·ic chi_ld.
F'ec~r.inlj thac. ~·he rna:; d0 so, B .TT'."rried her. ~he r:ont;-act of ,~ge is
tJ,,_'re1or.e •;o1.dable because vf t;ne;..n:. •
A simple rni..s~.;,ke of account 'nay qiv!:' J.~se to thP annu.J.rr,en: ~.he contract
because of ~i~take.
a. fir~t: statement is f~lse; second is tcu~
h. Bo.::h are .:alse
c. i:-:Jt:h arc: true

'7 . A a p p .n n r f··', E r o s e .ll his 1 :uh, :

I f t_ ! '(' (.~ !1. i: () c L l y 0 ::: B i 5 G r 1.1 j__
d t! s .~j ~ e ~. s i_ r. '~ L b ~ :
• ·;, j r
~a~e is void.
I~ the auth.Jrity ~t B ~s 1n ~~1~1n~ dnd ~~E· Sd}P is oral, L·a ccn.::::act lS
'..lnenforceab I.e.
a. The fi::st statement i;_; fdl:><3; Lhe .s')cond Ls tru<"
b. ·~·he i.s true; second ~s false
.:. :1oth,,,._, true
c. l\Olil .lee. Lalse

a. ,: !tl:'.··'''' whe~e the •;.cedi.t.or. '-''as damcJ~"!rl by tr.~ 3.ct of tr.e c!ebt:or

c.• _j ro cJefraud h.iJ:l.
en~ered i~to ~~ ~
person i r, cap a b l (:: c f g i v j n g co n s cr. ~ .
c. ',c,l~ of ,_na~tels orAlly ente.J..ed Lr't.J ten a price nuc. J~ss +.:.han five
hunrlred pe:.;os.
d. :"<'.<C~,;e; o.L real property ior mu.::e thar, c_,qe year nrally ent<ore>d i.ntu.

3. A gave a Qqe M.ill~cn Pesns fer Befo1:e

accornpllo:h hlo, cr.imina.l ir.t:F:nt. tr: kJ.ll ~,_-:, l\ chanqed his rr._j_r.::
the reLL•IJ, ·.. t the money from i3 ;Jec~de:
a. A caw ..·L: reco·ver thl! pa::'nent ne made to 3 becau.:.(~ i t was a void
cJrt=a~t ~hich does ~ot allow reco~ery by t~e guilty narty.
b. A Cdnnc..l r:ec,~ver che mc)CJCY bcca·.1se lh<; contract: is u::.-:;n:lcrcPclb:~e.
c. A can recovE:.r the mcney .altho•1qh t•.e r::onttCJcl: is void sincr~ the crime
was not r:-:>mrnitted.
•1. No reco''ery diJd bot:h i'\. and B will prosecutPd for their --:rim<:.

10. BECC..'..lSe A. warJts c0 sell Lis lar.d tc R but the lat:ter .--:!''0'3 nc-,::: want
t0 ~uy the sa~e, A forced E to buy his la0d.
a. Net bHHling upon B :o;ince ;liS consent Wd.S vitiated.
b. l':: lc> un<· a.s aga"Lr:st. B ht..:t: no;.: A.
c. !-1:1y ;J<: :·1tified ex~reso;.ly ur li:o::.t:ly ! ._, i'\.
i." V<~.L.Lc.i, billdinc; an: ~~nforce2bl·' .
11. !) bcrrowec~ a ~.;urn of money iro:n C
Gas guarantor. \~ith The loan is
in 1.vr:i tine; buc the ,~ua.canty is ural D failed to P·lY who now is
dern.1nclinu pdvment from C. _(,2!1 G be compelled to ;Elj'.'
a. 'r'e:s, be·~a·J3e he lS ::!le g·JaJ:antoc o.,J.lged to pay"' t;- e
de [ . 1. l ', J ;-. ~~ . c
c. No Ct."<>tuse 1:l1e ')Uaranty L.-. vo ~d hav.lng t.een orally mad~:
~,..... No, bec:,on. . se the guaranty j:::; ~ against G, it: 0eing oral.
d. Ye~, bc•c:.use the guaranty i::; enfcrc:eatue, writ-lng not needed.

l "-• A and B <=~grf'!ed on February 3, ?.011. tu.:J.t B will con5tJ·uct the house
of A ln ,J.'muc.:ry 2013. 'I'lle cc;11..ract •as Er,te:rec-J 1 n':o. B

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BUSir't!ESS lAW- FIRSt PRc--B0AI<D EX,AivliN/\TION (BATCh 26)
~SA: The Review School of Aa:ountancy Page 3 of 8

payment t:com A with the ba]_a;:,ce pa:,:able ctftex

t- ~1e flOUS·2 ~
u t Ttle CODt ract is:

·,'oic 1 t:.>"'" h<"cau.3e i t r:qt i_n f'l•bli,~ instr:urc.ent. •
;;·!::.·~~·:•;c,bJ•e •"Jen if nut ir, w:citinq hc'vlng l:J8en .-ratifled.
c. UneL'UlCec,L:l.:..e because it is nc• ill '-''.Citing Rnd yet perforroailC(; the.ce is

d. '/c.-i•< ~·ec-a.Jse l. ::_s rw 1.= in wri as rcq•.J.j_rec by 13.\v

~3. A sol<: J 3 a fake Rolex watch on JanJary 3, 2013.

On Januar~ 13,
t:hat L.he wacch ;·1e boJght £row A -,,as an
!J .c·:·:, JE::Led
~·ni::at •" ;'he la1.; r;rovides •-.:h'.::.t he <;:an annul the 33le as ::
vo_1,Jar~j •.: ::onr-.ract •..,rithi-n four ?'rescription :.;tari~s from:
~ va;l\'~' ~'/ 3, 'J(JJl wher. t'.he 3ale was p2rfccted
b. 'iile ~:ir1H': v· deJiverv of d•e wat:::h to 3.
c. 'Tr1c: :l:t•·' they first tal:~":d acout the sal'=_o:: the watci'..
Ja:Hlc1: ·1· i3, 2001 when tbe ·fraud was discovered by B.

14. A and l. ,. re<=.j or, a c:ulttrdct of pledge. hcwever,. they cnt.e,~ed

c'l:: a ~ ·)·: t r3r::t C•f mon:Cl:tge in the hon~St belief tl1at the mortgage
:-.· a.;:-; :-_hE:: Sctr.\E::. '.Lhc: in:.trUJnE::nt f•121Y be reformeJ:
'.:L '1ocumel't ·~anr.:J'. be. rc::foL:~ed :olnc•c: the cor,trac::: i!' voia.
b. tio, cz1·uot be cho.I,ged. . . They are bour,d by tl:e docume':'lt which speaks

c. y 25, C.J.rl je rP- formed b•"·c.J.U!"E: i t dces r:ot express the true ayr:eement
uf the pia ties.
d. No, i_ t- ':it,Ll'Jt be teformed jecause there wa~ no meeting o::.' rrinds b·::tween
che r•rt~es and the remedy i5 annulffie~t of contract.

l ~ . into .a COl! However, a.s written, the

I'iC1. ot i(IOl_'tC:,age.
it i_s co\' t: ::art- of sale
.-·it!, right of r<!purchase, the
a. The ·._oi~·--rac.c of t;ale r:n1st be annulled sn1ce .!.t is voidable.
!.:: • 'fi","-' .Lr.s: run.ent has 'co be ellforc(2cl a::: is for i t i,:5 the proof of the
.J.Cj r< f~:ne;; t bE.l:•.-.reen the po..:::t.les.
c. l'lecau.c e nf the r.egliqencc 0f the •!)arties in signing wi tl:ollt first
.r:E::aclinCJ . he insL::ument, they bound !:Jy the contents of che 5a,ue.
:1.. fh<~ i.n.e>l~-ument may 'be re£ormed because i t doco. not expre:ss the true

tl c:bC:ct~ncc;:
::om Co. .:..oa:1 ac.1ountjrg to !:'50,000.00, tbe same being secured
:.)y a o.~ D' ::o
r'l:_:, --''"_l_ot. Tl-:ert:c.fter, ,--:_ a:osic;-ned his erect_;_ L L 1 ght to T
wit:n ; to D. Based on the foreg·.Jing fact.s, which of the following
stat:em~nt~ 1~ incorrect?
cullcct irom D if D does not qive his sonsent t:o the
b. T car> collect from D. D's consent: tC' the assignment is not re1uired.
c. T c.·.n col lee. t from D ar)d D caunc'c pay, T c0.n foreclose the mortgage on
th~ lot:.
d, T:1e noti :c to D of the as SlCJ:Lmenl:: is sufficient. D mus~ make his
payner.·~ co r and [lCJ longer to c. ~\

.. Y.:ind 'Ji In•:Jr·cg~ge wh)_ch, c.lth·.)L:gh la<jikL1g -::son'e fo.~_·malit.y, fvrn of words,
~JL r:c:qu.i:;itt::'o :;:rescribec' by law, ~·lmoJ the i!ltention of the Far1:ies to
..:h •. rg,~ re:1.l Froperty .-:!s sec11Tity fez: dc0t a:-1e1 corotai:-1s nntning impossible
c;r contrac; Lo law is know,·r as:
a. LeCJrt.~ rnort<;age
b. Sc,'<li t -,,j:.: l. e cnc rtga::je
c. (>)n·.·er'.t ._( ·1al mortg'lge
d. Vc-ll:r:'Lc' ..: •no::tgage

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ReSA: The Review School ol A~countancy Page 4 of 8

1e. ll. d u:'.'"";_,le pro1--erty :is c;,<-~! :-;,_'f·il·,-;,•__ c~:y Lo ~:Wl' ur mere.• dicLerent~
vendee:;, ,.,,mership sh:tJ.l bei..,mg t ' ) t-he ~),:C.o:-~:
a.Whc in gcod faith first pald the purch~~e price in fuil.
b. ~'.'he ln lJ'lOd .C.Jj_ tb firs•: rec-:ndeci the> ;:;ale in t h,e I<.egi.:; ·:ry u:L Property.
c. Who in c:•ooC.: f'c,ith pre3<•nts •:rP oldest title.
d. \'Jho ln good [ait:~ fir.<:t too:: posse::-co. o•n o:: t.'l'= property.

:.> !] e is p e" f e c ~ ,, d :
2. Upur1 c{ r:·tt_J L Lance with ~1'~ ,::t.-.q'JlL·ernent:_.s o.L t11e la\~ a~, ~-o tc_:,r: .. n.
b. Upon '•Jery of tf:e ob~e:ct ut: the r:o:Jtract.

Upc: t:h<': meeting ol: the~ minds entre tl:.inq VJhich js t.he oi)ject· of the
coflt::rclc:- e1nd upon the prl:?.
"J. 'jp-:Jn c!en artd..

20. A
~0~~ra:t of s~le is not
f.:.::ir;,_~J..pc.,L cc_,ntract
n •

b. Non inc- t:t·' contract

c. Cor s r:: r-~ ,:.:; t. ..~-1 _; cor. \~·r act
d. keaJ_ contra.-:~.-.

21. The followl~g may not b~ velid object_ of a contract of sale t·xcept:
a. Obl r: r~:ls Cl'tside the cornrn"'t:c.::. cf m:n
r>. ll]i_r·il lhings
F'cLLUl "'' yoods
::1. I:-r\JOE:S._blt=;- secvice

22. Tri.s ic; Kind of symbcJ ic: deli ,;c:ry wher~ the ve:.dor rema ·-_ns in
tJOSsessic,u of the pr:ope.'"t::..~-,::-,,'--_,ld, s~~~·J--- ,-1-~ by ,,; ;:tue of " leo.::-e <'<;neemerit
v:i th the '/end•~e.
s . T L d d.! c 1: o I on g a rr.c> n u
b . C": d d i t_ i ::.: b.r e vi manu
c. J·--3jjr~o -:cnstitutum 1-JO.:OSt:."sorium
d. D·~·..Li.,,·.~r:y cv conunon c.::r::_t-:r

2:5. !,~hentre qoods are deliverui tr) the t;c:.yer, Ll1e o:vr>"r:·h-· t·hpc·eof pa:cses
to th,' t.u;~r i'1;
a. Sal.e on arprcval
b. Sale or Leturn
c. Sale on ccla:
d. Cu:t\'c~•:L to SPll

24 p romi..·c: e•.i ro sell c.:1 to f l t F ::C0Cl,Clr'10. 1)0 y'.·:~nq U 30 days tc:.


dec; de. B accepted tht: rrunLc:.i~o ot ~:; ,,,\.::; i_r,fc;::med :; t·_hc;! he-~ '131 would make
ki1 :).-''"l
1 h.1.s d~cl.sion bE.fore tht- •apo~ o[ ::o day.s. He :ll r,c. CV1VC .; !.'2 f 000. 00
:,,_; _:-~:It_: ,,: . ~r ·\ti.on so that .3 ''O'llcl r1old on LC) t"is ptc:ffi.o3C'3 T'le contrac·..:
enuc:r.c~ri .Ll t:<J be:ween S dD 1 Fl and t~l·.>. . o '1 s l cl tor·" t i c" '! ; .. "' h v B to S a r c>

a. O~>tlun contrast etnd op':.iJn money·, r·c>sf::PCt_lvelj.

b. Cnnt~,=JL:'"- of- sale LllJ.d eJ;'"1e.s~ rno:H'~· rt-:spectivel.y.
c. \:cr~:. t•\:t of: .salt.=. aLd d-:;·v·i~l pay'Jle,·-~t. l~,·,~-:;pectiveJ.y.
d. 12.'>:1 ·-ch:L ci sale and re·-,f•rvo.t ion '''Ol\t"j, rcc>pec':.l.'JCly.

25. Peter. t No. 24.

a. c; 1\\ilj' •.-JJ.thdraw hi::, c•f:er to :Je.Ll 0-"c·ore ~he l.duse of -J dav:; by :_nfcrminq B.
b. S n»1y n'Jt v-.•"'thdLa\-r his·offec:: i_,efoLe the Lunse ,.,f: 30 C:.3'i'··
1:. sm.:·/ w_;thd:-a1-1 the of:f,~r '..Jy retLCtJng '•'1e amc)\.1!1t of P ,;, t.hi1t~ was
p u,:i L;) r.lm by B.
d. :; ma1· wi·_;·,draw his offer t:ven Lc·tcne th~ Japse of JO cllv:· i t a favrrable
pr1c:1·, .e., rr.ore lh<u's ?OO,OOO.on, is off<red h1:o, L'! <-.r::>ther
<:;ro~:p,··:tJ.Ve buyEr.

26. upon tlL prcposal

of"' a thirr::l_ pe1son, a nev< debt·.Jr subs'cltuted the
01 iqlna.l_ w:;.thout tne l;-1tter' s c:onsc,nt. The cr<c.d' t':l;: acce!Jted thf-'

• Slit''' \.:1 I U L i.o:' . Later, ho'vJt-Vcr, the new debt lnsolvent and or
dcfc1L:.~~ ·c: in hi'.i o:,ligat~ c~n. \lih.>t ls the Efte~t of :_r;e n e i-1 c; e '::: to r ' s
de1.au1_,__ up01: che original d~btor?

P~ge 5 of 8

" T:;v o~_:_g.:.nAl debtor i.e- f_r:-eed of liJ.bility since r.ovatio:t ~ook place
-l!lci tlcl!O rcl.J.:::ved of his oclir:ratior,.
b. ··::, cnLginal Jpb:::or shaJ.l pay or pe.:form the o::>L:.gatlon Wlth
.:t.' 1 -'-)~_ese ':o the net-J de~"t.ur.
c.:. Tl, oc:lginal c.:;ht-.o:::: rem3.i.ns .:.lab.:.e since h<e gav2 n•) co11sent Lo the
_;u,:>: ti tution.
;·J., 'Hlgin'} · debtr:>r sh:~.:.:;_ pay o:c pe•_forw 50% of the oi.Jl.i_gatl.Oil to
.-1,, c:n_l'.lSt enrlc'unent on his p:cr

>-~. t:-.e ~wncr, c.:OJJ3titnted a 10-year usufr:Jcl..: '-'n hjs land as w'=ll as on the
oui.:.cli ng "" on it in V.' s filvor. After fJ ood tot;1lly det:troyed the
tui.lciin,J :J \IE:d~.S later. X tnJG. Y -c:wt an act of God -t:errnina-ced the
usufruct anc< t.nat he slloulc.i"va~ate t.he land. Is X, thF! owner of the land,
a. J.v, :.he bulldrng was destrc.,yed th.:::ough no of Y.
•; L~;ce-

~ No. ;1nce Y st.ill r.:<s t-:l1e r1ght to use the land a:J.c. the materials
l·:::-ft )il lt..
< .. ·:ce 'f Colll10t use the land \Ji.th011t the building.
~cnce the; d·~stru:::tJ.on of t;1e ~uiiding ~it.hout t~e X' s fault

\ i.J,J_c_:_(·.-~t.:ci rr.ilL.on frcm 3. o<:,nk, secured by a mortgag2 on his land.

:-.-.:cttlUL.t ilJ:-iccnscnt., h~s fri ..:r.d b paid the '...Thole loan. Since F. be.1efited.
::~on: the f-'c>~''';eJ t, can 8 .:ompel the bank t.o !.<>..!br:Jgate him ir, its right as
~ortgaq~~ c~ A'~ lan~?
a. i~c., b·"t the ba:1k car. foreclose and pay B back. •
b. No, since B paid far A's J.oan without hi~ approval.
:·::· . , Ill-:e a;e nt c~editor tcok plac~ by nuvdtion wich the
··on sent.
d. Yes, s1nce it ls but r ght that B be able to get bac~ his mcney
an'--<., J.f no'::, t8 [o.ceclo.ce the: mortgage in the manr:er of t.he

~'· ''- b-:Jrr:cw~:d r': !nill:.on fc:om E 2.n.J F 1-1ho ac.:tea as solidary creditors. When
::: :1e l.o"n rna • .c: e<-', E wro': = a .letter to r<, demanC.i11g payment of the, loan
:Lrectl ~' to :.m. Before P. cvuJ.c'. co!T'pJ.y, F wellt to see hin• :t=Jersonally to
.~:)}.lect ,,nd .cc ['did him. Dici R m;:;ke a valid payment?
•u, sJ c:ce F\ should" have sr-llt the j_Jayment be-c:ween Rodrigo and

l';o, >~ 1 nc~ E, t~.e other solidary credito.>:: alreJdy made a prior
uema·:d ~or pa~~~nt from r..'
-,·es, :o ... llce tne prt]111Pnt c~vers tloe wLc'_e 0bl1gation.
c.i. Yes, :cJ.n::e E · was d solida:t:y ;redllor, ;::;ayment to hi~
extln;.;~shed t-:he obliqation.

r-. ob.1 _:.qdticn und<e:r '.:he New Civll C:ode of the ?l)il.ippines is one
d. t~e cbllgor has ;:, IhGral ::Jbl '.gat·.:.on to do, otherwise entitl:Lng
th•:: o:: l :.qee to damages
b. .:efc~rs ":O an obliqatio.l it. writir.g co do or not t.o do.
c. ti-le o'·lic;ee mc:.y e,1forcc tbrvU<Jh the court if violaced by the
obliqu r.
c1 c·cl:l:-lc_,l_ !)C ~udicially ·enforced but autho_-:-izes t:he obligee to
~eta.:.;J t h.e cblioor' s p;;>\mcrJt· or performc.Pce.

_:;_:_,A :)ought 2' s pr_o;)er1~y.

through C, <<r. agent empowe.i:ed with a special power
~. c\:::t:ornt:-; t,
sell Lhe sar'e, Wher. ;-.,was ready to pay as .3cheduJ<:'d,
'it'J\ 1

.~ :~u2.'..·~d. l .. I•o•~linc; A L·~ vdy dir<e:cl.Jy "co nir.1.. On learning this, C, B's
,; :r:c:.i:, cold A pay throug~'1 c.s his SPl\ provided and to pr.otec~ his
-~·:.:-rn:;u:::.~lOJl. Fd(c:cl with two c.l.1.i.milnts, A con~i'}ned the i:1 court. B
p~otested, that: tbe consignation is ineffective since no ten~er


J¥SA: -~he Review School of Accountancy

ct payrn."nt ¥>ras rr.ade t0 hir.t. ::s he cor.rect?

d. No. sir•cc c:onsign3tion w~_thvut: t•:;{•jer ot paymer·t lc; allowed 1n
c-h'" fnr:e of the co;1flv:c i.rtg r:l;;s Gn the debtor. •
o. ''""' as owner o~ tt.c• property so~d, B car. drcntand payment
directly to himself.
c. i.'F~::;, si.1ce A made n(• .~nnounc?ment ~" t!-1"' tender.
d. Yes, a tender of P·"~YJ.te•lt 1 S ··ec;·.:i::c:i ror a '/dlid ··:.;:i:•;:._g;-::Jt•.CC'•.

B fJ l0!1 due on or::-l~\ u ·~r

m::.ll ~~ , ·,: \jJ 1 jut tailecl t c: nay h r: r on cil h~

~~ ,icrna .1d letter 1 G !'i ("T.; 1 .. 1
;:; l_~n t d her 5 cJ,-.,ys ! rem~ r CCC' tr~ withrn
")_..I_ ••

,_,:: :.d','. 't'\JO cays a£ I.:;c,:.:.p~~ OL r},o }•:':.'>'.', !\ t'e:::ona;_ly of:feJ:ed
':0 pd~· f3 J!l rrunc\Q<!r;,s check but :..he lii:_t•": ,~,:fused tc• accept the :.;arne. The
5 days lwps0d. May ,c,· s n:CligatL('f' be •.::c.1si.deu'!ci extinguish.ed?
a. Y2'i, since B' s rP-fusal l1f the manager's check, wh· cl- is p :esumed
tundPd, amOU:1tS eo p Sat.i.sfacti.Gn o_E t:-te ob.l.igat.iur ..
b. t-:c~, .sine~ tender: of r)ayment '2.\rer • .iY'l cash .. ·.i_f ref~J~.3ed, will no~:_
:.::.i.~,·~:t<~rc,e the I..JitiJot·c· ''Loper consi<]'1at(; ., in c Cl'U~t.
·-r~l~,-~ A tendr·rf~ri :,·:J·:rn•.''



I~aPl:. 1 ·•·t'~-
__,, L '·it:· ft1.~ 1 d!~i"'llnL t1L·
(J•,•t. r~:U\\S.::.d~-·l•;>d ]_r_· ~ tender in
. 1

2 3. !'he fo.l
I owi:,c,
u re t.:he cJ.emer.ts
of an ohligation,
. except:

t• f-1··t.i.v·:· c;ubject
[':t ·J.l ··: o,ubjcct

:34. it mz~y ·;-'I I' 'l' l r~q, .) I ri (' - '' ·J

_:i. ~/c l ... ~, it 1c.~1

~~ uL 1 u .L -- al !1 e c e.s s i t y
P r~-·: t ,J t ~on
d. ,-·on r: :·.~,

35. It is a ju~idic~l rel~ticn arising frcm "_L,w.f'.Jl, >.:o)ur,tary cuiO ur;_i l(iteral
acts based on the p.rlnciple that no o~J'': shouJd u:1justly ~nri•.:!1 [;_;_m:-;el_ ~ .:ct
the expense of unother.
a. Qua.s: cont. ract
b. Ouc'''l -c:lelict
r:_: c· n. t r :--i c t:

36. '1'h<~ ioJ 1C·¥>1illcj I· the elements Of ell q~Jasi-deli.ct:, ex<~~pt:

<·t. J.\,:'. u!'lission

b. Faul_t/.Jegllg-=nce
·-· flama'JcO:Iinjury..
~ 0 J e-eYi~~ing c0ntLact

37. A dd:,'·or _'.5 '_J_l:::,l=- For dam<:ges 1.f :1e 1:3 quilt'y' o:: any of t:!lc foJlc,.;ing,
..:t • c_~ f-: J-, ll; l L •· ;• tor a)
b. rn..Lstar:c·
c. ne.:Jlll.J•:~r~ce (culp<... ) ""
d. ..Jc·e:ach t:hu-:.ugh con':r<:lventjon of .. r.e tenor therPof

38. t.en:1 refers to i'l c.:.~:Lay 011 the ,')arc uf hoth the debto~ M:d c.z.:-d1tor .i'1
reciproc3l oblJ.y3c~ons.
a. Mcra ilc:cJpie~di
b. Mora so~J~~di
c. ComtJE:r'Sd1-io~:
d. ScluLLon 1ndibiti

~SA: Th~ Rc,Jiew 5c.nool of Accountancy P~ge 7 of 8

'-· l L LS i:1t:ention2l e'7Zl3j on the faithful performance of the •

. •

~: borrr)w"'c! rr,.J:1ej frorr. a banJ.:, sccur2d by a mor!:qage on the J.a:rd of Y, his

c;_ose tri,·r:u. the l:Jar. matured, Y of:!:'ered to pay th-= "Jank but i t
r.:fusc_d s~:1-:>: 'r was no': the bcrrvwec Is t.r-..e bank's action correct?
<'1. --:'"''• scJJce X, tne true ~crrower, did n.ot give hi.s cons'"nc to 'r':.>
':lfr::r to pwy.
b. NG. o: _nee anybody ca.'l disc~d.-'ge X' s cbl:•:Ja-cion to his ben~fit.
rr,. :c:l r.,-::2 Y, ;..he O'-''l.Cr of the CC'llAt.eral, has an intere3t i::J. the
pc:_/l.cccr': cf th~ obll•J'lti_on.
c. ':'res, :F-.:::e it \vas X who has an ubligat2.on to the bank.

-~·:-~<co fcllo·,.;·r~c; 1re lhe .cequlsites of mora s)lvendJ., except:

3.. OLL; tion
QcJ :Jerto'ins to the debtor und is deterv.inute, due,
Gemi.liUiible, und
D. Ob~_u .cron was perfcrrucd on its ruat~rity date.
There :s Judiclal or extrC~~udiclal demand by the creditor.
d. -c~u J.· : .. of the debtor to c:o<clDly wj th ::;uch (""ma:ld.

-!_. c::.~~Je :::::lJ 'J8_r:c; are·_..:: ot: :':.lrtL 0 tOL'.S ev\O'r.t, e::tcep~:
3.. Ca!lse rs rndependent ct.~ ·e 'A~ill cf thE: debtor.
'J. :'ll•.· t'v,·nt l"' unfuresc::eah],'/Un-'lvoidable.
i'IJ:r•c-nc· renders :..L ah.o;cJute.:.y impossib.le ~or the uebtor to
tLJf_L. his oblJ.garion i.n a normal manner; i.mpossibi.lit.l must be
:'lbsoJL:le not partic.l, oUH=n-'l.Se nol force majet.:re.
d. Libtur cortribtlc<Cd to th2 nggr'l.vation 0f the injury to the cre<itor.

·l3. ? deb::or ';'lay still be held Ji;,b.l-= fer or dam.:.ges even if i t was
caused by ~ort.Jitou.s event .:.n aCJy of th.:::> foJ.. 1.owing i.J.stances, except:
a. The ~e~tur i~ guilty of nolo, malice or bad, has prowised
t11e '"r:::" tl>rng t;c two cr mu_:e pe:so!ls who do nt1t have: the same
inteLt·~; t.
·~·:-c,:: d··- ·· ··o'l'tribLJted t.c t).e l':.JSS.
c. '~''1e tl ·''·!tube·ed lS geneJ:ic.
d. T'1e .'eL tor is '-''c t:? ct fraud, neglJ..yence or de::.ay or if he
c':ln'::raver:ed the te.lor ol:' ::.he obligation.

:] -1. E. F, add T 0cund r.Lemsel \'es suli~aril y to pay ]\ 1:he ""mount uf PS, 000.00.
Suppose S pd::i t-he obligat1on, what is his right as ugainst his co-
d·o:btors ·:
a. 5 ca.1 ~-"''. for reimbc;r:.;emenL f.::or.:-. F and T.
b. 8 can ~u~ F ~nd T f~r damages.
c. B can sJe for rescisslon
a can :ldim a refund from ~-

'l'J. 8, r c~.nd
T 1)0UJ.u themselves ~olid:uily ':o pay A the sum of PlO,'JOO.OO.
\~h,~n the obl:.g JT:_;_od bec:arne ,:JuF and, A sued B for tne payment of PlO, 000.00. B moved tc di.:>mi~s on the ground that there wa:- failuJ.:e to
_:_::elude F ard T •;.~ho ar-e also de!:lu:ns. vJil_l tl·,e I:lction to disw.l~S prosper?
a. Yes, F 3.nd T should havi'O "'been impleaded as ':heir
ohlic, is soliJaJ:y.
b ~iG, r_.c:c;c.use tr.e r:rcc::..tor :nay proceed aga.:nst any one of the •
solu_:,j ;:y detltcirs or sorr,.:o or: 2Jl 0£ them o:i1nul taneously.
lnJ :_, c...luse a rnoL_~_~n t~ di~_rniss rs a prohlbited pleadjng.

d. Ye~, because F a~d T ~could al:-o ray thei~ share of the

::Jh.L.:..-_;r:. . ti.on. -:-.

BUSINESS LAW -- rl/\5~ PK.E-BdAR.ll b<AM!NA110N (BATCH 26)

Page 8 of E

~6. 8, F' an'-: 'l' .ne

s0lj Jnry ocbt.ors of .\. Twelve ( L2i ;.ea,_.c; <.fter the
obJ.j ~..;a.tic'rl 1)t~:_:ame
due c:nd dl~~l·tnnclabJt..-::, e i"JdJ.(;_ .r\ dnd j_~._'.t ~~r a.sY.t:_d for
re;:•:_,,_rsE,mer:t of F' s and 'l'' :> :'r.ctrc.:::;. I:· E cotrect? ·.~h~·-;

d No, L> (: c aU 5 e t he r)'[) l ~ c; d ~ • :; 1i h d 5 : ,., d ci y p r e S c L : n c d .

b Yes, ~'- ;d:.ry·

c. No, JP.~ause in sol idar ,, obU 'p.<:icn any oiJe of t:h•, so_ldary·

de~~or~ can PilY the ~~~ire de"Jt.

d. Yes, because F' and T wj_ll be unduly ·~nrichP-d at the expe:lse or

4-1. B, F d!ld ·r :·.re 30 1~idar'{ rlt.'::,to.cs und"'r a loan ohlic;ation o:". P300,00C.OO
wh.ich hcts faLler; due. The -~redl·.or l1as, hov:ever. condoned F's olltire share
l'~ Ltle debt. ::Jir.::e T ha:;;~ bec,Jm<.:.. :truu\.JPnt:, the cre·iitcr m-\kes d oemand on
G to pas· t :1"' J.:b': i!ow muc'1, lL e~ny, me.•,· B be cornrelled t.o F'·''.'')
a. P2(:U.O~JO.CO

" b. :::>3(J.J, c:G.J. oo

c.:. r1on,ur·o.oo
r:l. p:::,u,ouo.OCJ

48. An obli(]atio.> Hhich Ls based-'cn equity 2nu natural law is i:rwv!D as:
a. pure: civil
b. quasi-contract d naLucal

4~. LJ bou~rht .-,cal fror., ,_/and d•=live.::ed a -:::hecf: ·1>1 pay.rr""r:r.

paid t'1r: obligation? Why·:
c.. ;,o, not yet, 'T'hr- de1'i.'Je:·y of p!·xnisS0YY notes pCJya.ble to orcie.•,
•Jr 1:1::..11.s of exch;_-mg<' 'r other rnercc:n:.ile docur:12nt.s shall produce
t h>: eftc:ct of I-Jdymenc O'l1y ~JheE they have been ,-,,•,heri or when
tL· )tlOfl the f-=Iulc o:' t:lt;: c:·c:·dlt::; "hey' h<,ve been i""P·licec1.
b. '[e;,, jecause a CfWCK .Sa V-.1.1..;d tt:'l!der of [li!'/!W~n:~.
I c:. dc.:rell.CS. 1 f t.'le cr1eL'K 1::; a ,,kUJager' s check or cashier' s check
.LC wi._l J t-noduc<: th<:: effect:. •.Jt paym<:!nt. If it:' s an orc~inary
·:h.·ck, no payment. .,
- ~r l _• .' ·,

SO.TtJt~ fo)]ov..ri_nl c:,ce the req..J.' ,,f l<:.q2.J .:om'Jensat.:.on, <oxce:t-r::

~t. 'l: ..•,t ~'-each of t:.he c-'n]_i-.;···rs .·rc> ;_-:,;_;_nd r-rincipc1ly c~r:d tirat be be
~-: 1 R s i1 me t j rne -.1 p L .i. ric-'" c1, 1l ~. ~ r e ":·~ 1 t u _e ,J f t 'n ~..~~ c t I! c r .
b ']'f1at both -::lc!Jts <..:on.:;ist lfl a su:1 cf mor,ey, or 't : 11c t In n q s ci ·.• e
are the'; be the s..u:1e- :c:_nd,
consumab~c, anC: C'f: '_hE sar.-.c
yuAlLty if the lntter has be~n stated. •
c. ~h~t the ~wo (2) dEbt~ ~re not y2t due
d. '''hdt: Uiey be liq11idat.~d C~nd -:lemandable .