NAL SERVICES. INC. a Phothe: sue kates Zor damages because the reason Tarte waiver vale fai ices of Kas, ‘which is a valid reason for the waiver. Phoebe can ses Kates forthe annulment since iis vidal, __ Phoste can sus Kates for damages becuase the waiver femade seid Nonetheless, te coir vali d. Phoebe can sue Kates for the rescission of the contract since itis rescissible. se This poston i lable fr the Joss of the subject mater by ‘D tortuitous event: (Phil CPA, 85-2; 88-1; 89-1) f Botha md t Dettr Nove of tem 18. A condion with if imposed on an obligation will be Ginepmiod and wil rerefore| make the bligaion imately demandsbe: (il OPA, 94-1) 2 aan commis sieide By Tfdtan pases the bar xenon © flo Bil Pato Sito wilt be om the dead 19, A ts B Ws it and ose in the cy PA decides to 1 tanaeand vin the conti” an example of CPi SrA) 2 Mixed eondion 1 Pomstave conion & Caan! condition &Resliy condton 20. The flowing er the remedies of te efor 0 purse his 1D ines oat the debt, excepto D spon the propery owned aed in posesion of the be rte gs ed xiog altho actions of he Gebrr ecco sbrogara) impugn the ace vilch the debtor may bave doe to eats cedtorsascion pans) cpl vor pan eves noir 21. One ofthe flowing alls odteton Which sit? of the contract ‘he © D promised to give C PS0,000,00 if C will not swim \ across the Pacific Ocean, D promised to give CP50,000,00 if D goes to Tokyo. ©. D promised to give C PS0,000.00 if C can fly to the on. 4. D promised to give © P50.000.00 if C gives him $ grans of masijuma, 22, D, ot line 19,2015 oblate hms 0 C sl tthe Lies Ss ows aid lof ee vey legs We \ P0000 on ondcn ht C pases the CPR os Ssaminions be gen a Ossbe 301, ne meanins tot beling tha wil ste fart cums Oso House oT sete i Alga 2013 In November P56 pase he ane engi Who hase eters tos fowse ad lt? Assan tt an 7 ai wl wed tanscion wh te Regia of Dons ad ees Shy ake poses 2 Clan beter right ote howe and lt base sid right gues back etme when the egos wat Gcnraced on Tne 1,205 soup he neon woe etn nN ara Sie Ha sl ohm in Ay 2075 wheres th condo infor of was Conga nly sonetne in November 2013 Baise of ie contoveny batten Can T ean dei sot toal the hose and bt enymre <4 Cone onion st given 23, D honored fem € P5000000 promising to pay ponte {5 se ofhis oie afd lot 123 Bel Avenue Mane The Dotan of to is Page 2 of 38 www. prte.com.ph 2s, 4 2, 28, K obliga an obligation of which soll therefore void C can collect only whé ot only the condition is aullifed, ‘hich case C can collect even sold Mr, AB owes Mr. CD P15 Mr. AB xecuted a mortgage Dae AB's building to guaranty the obligation. On AMEN Te 2016 the mortgaged building was totally lost due jyphoon, On August 12, 2016, Mr. CD demanded payment tem nts, AB, Is Mr. CD's demand valid? (Phil CPA, 88-1; 2-Ms 89-1-M; 90-2-M; 93-2-M; ) SM ic npn fore nth a definite prog thus the * Creditor cannot demand fulfillment of the obligation as Such would the prejudicial to the rights of the debtor. No. ‘The obligation is extinguished because the ligation is lst through «fortuitous event. Yes. The debt becomes due at once because the guaranty was lost even through a fortuitous event unless the debtor can mortgage another property that is equally satislactory Yes. The debt becomes due at once because, from the tenor benefit is given solely to the creditor thereby siving the creditors the right to demand performance ven before the date. 1 the following cases, the debtor loses the right to use the Period in which case the obligation becomes immediately demandable. Choose the exception: 8. When afier the obligation is contracted, the debtor ‘becomes insolvent but he gives a collateral security oF varanty ‘ic be ul to fumish the eoltera security that he 3125 promised ©. When the collateral is impaired whether throvgh fi fault or by fortuitous event. -— When the debtor attempts to abscond, g, Note ofthe above is under obligation to pay © 500,000 on December 15, 2016 Before de date, D wants to pay C'P300,000 but the late ese o accept because the obligation is nt yet due, "Doan compel © w accept payment besnise wha ‘obligation is with a period, said period is Jel of the debtor only. See ee nthe fulfillment nit with a potestative cons “hie Ty depends on the will of the deb:or ong 1en D is able to sell the house and ut not the obligation in the house and fot is not 0,000 due on August 31, 2016. in favor of Mr. CD on Mz. b. ». Cem rhe t SSceBt pament because whe ‘obligation is wit i te Colton with & porad the bereits sat ®. Cean reise 0 accep: because whsn an ob x "ause when an obligation is 4 perio, said period is renamed 1c oa benefit of both debtor and creditor, 7 hy Gamat asuer not neste Wn ih deere pert hin oda ta CPA, 91-1) be - Wiha conn Wie peed e: Thao Answer, Ao ann 2 Dos py C1 0.0 when xa © Dwatpey CPoongy open Xt © Dwllpy cma Business Administration, a Neve oft ane al himself to pay when his meang im en. his Heation is considered as one: (Phil ‘pendent upon the debtor's sole will a.k aa r- hal : ne .. through the fault of the debt a alternatively the bet ot nity for damages all the things hn Shligstion have een fo SS become impossible. The fen (Phi CPA, $7.1) b. ‘The valve of the most expec ne The valbe of the last thing which anny gp, ThE Nalte oF he srt hing ta 8D is blige wo ive Ca specs watch, pei ake ilie watch, specie ring, oF a Fe right Pecan ee that © will have the Cebu maxe his chore, the Pa ee RHE whim Bet tah OFA suerte Bm a hs ain chaee en tha the eho? Price ofthe waich othe price ofthe ring phir a py. Pissofthe watch othe price of tering ps dan roase the price of the watch or th © the Fing because the said objets have alzeady nce lost ©. © can only choose 19 have the bracelet bwcsu ‘anyway. D can still perform his obligate 4. C can only choose w have delivery of the bra price of the ring which was the last item thar was lost pus damages. 31. D is obliged to give C a specific ri that D may give a specifie brucelet as substitute. Whieh of the following statements is true? a. If the ring is lost through a fortuitous event befor substitution, the obligation is extinguished. 1b. Hf the bracelet is lost through a forwuitous event before substitution, the obligation is extingu'shes. €. If the ring is lost through a ‘ort'tous event substitution, the obligation is estinguished If the ring is West throush the debors : stitution, the debtor shall pay damages. 432. This is the promissory note: We promise 10 pay A. B ond ¢ the sum o° ONE HUNDRED DIGHTY THOUSAND Jy (180.000) PESOS within 60 days. Signed X ¥ and 7 [Phil CPA, 89-2: 90-1, 87-2-M; 88-!-M: 88-2-M: 88-2-M BouleM 90-1-My 90-2-M; 92-1-M; 92-1-M; 92-2-M: 95-1 Mi 05-1-M; 96-1-M: 96-1-M, 96-2-M) ‘a, X ss obliged to pay A P20.000 ib. X is obliged to pay A P60.000 &. X isobliged to pay A P180.000 +4, X is obl gedto pay AB and C P180,000. $3. A, 25 yoars old. 15, 35 years old, and C. 17 years old. are Kolidary debtors of X i the amount of P2.000.00 Be Kinay cole from A 9,000.09 bX may collect from A 6,001.00. ‘e. X may collect from A 1,000.00. GX may collect ‘nothing because thy bligition is , yoidable, C being a minor “34. A and B are solidary debtors of X. Y and the amount of P15,000, How mach can Z collect from B? (Pail CPA, 88-2) fa, Z.could recover P7,500 from B bb. Zcould recover P5,000 from B €. Zeould reesver P15,000 trom B. Z in sum has to give X and ¥ P5,00K) each. Zcou'd recover P1S,000 feom B, Bin tum can collect from the amount of P7,500. 135, A, B and C obligated themselves to daliver to X specific ex Specrert rata Ov ace date, said ear is not debvered 0 X “due to the fault of A causing a P9,000 darrage to the former. In this ease: ‘ompel any of. i 2 . The parties agree joint creditors 10 "As Band to pay P309,000. Cis presumed to (May 2019) _ ATTY. ONG © “The obligation of A, B and © is presumed but the action is converted into ane for damages whe X cam collect from A, B and © P103,000 each 4. ‘The obf gation of A, B and C is presumed to be joint but the action is converted info one for damages where X ean collect from A P108,000 and from B and € 100,000 each 36. In a joint obligation, joint means ary of the following Pro rata b. Mancemunada simple ©. Individually and collectively 4 Proportionate 37. A solitary abligation is one in which each of the debtor is liable for the entice obligation or debt and each of the © creditors is ented to the entre eredit. Obligations shall alse be vonsideved solidary under the following three exceptions ion? (Phi CPA. 87-1) Which does not belong to the ext 44. When solidary is expresely stipulated in che obligation When the prestation is indivisible and there are 199 oF more debtors and creditors. When the law expressly provides solidarity SL When solidarity’ is required from the nature of the obligation 38 A obliges himself to pay X 100,000 in 30 days plus @ Ar penalty oF P20,060 if A fails to pay the obligation in due ime. A failed t0 pay the obligation in 30 days. X ean deswand fro-m Az Phil CPA, 90-2) 1. The principal of P100,000 plus P20,000 penalty. The principal of P100,000 plus P20,000 penalty. plus legal interest damage The principal ef P100,000 plus legal interes. 3. The principal of P100,000. plus P20,000 penal «plus fal interes, plus dar 59, Consider the follow ing statements: B L._ The nullity ofthe principal obligation caries with itthe nu lity af the penal clause 11. ‘The nullity of the princisal obligation does not earry with ithe nulity ofthe penal clause Hil, The nullity oF the penal clause carries with it the nul of the prine pal obligation. IV. The nullity of the penal clause does not carry with it the nullity ofthe prine pal obligation, 4. Stutemenis and I are tue by Statements { and 1V are true, ‘© Statements If and Ill are true Statements It and IV are true 40) in the following cases, interest or damages ean he collected by the creditor ftom the debtor in addition to the penalty agreed upon {/ tere is 2 stipultion to that effect. b. {tye debior defaults in the payment of the penalty ce Where the debtor commits fraud in the fulfitiment of the obligation 4. Alloftheabove e. None ofa, bande 41, Dominica and Domingo are jointly and severally lable to C. Crispino for P100,000.00. The obligation is due on June 30, 2016, On June 28, 2016, Dominico paid the whole amount Gf te note to Crispino. If Domingo reimburses Dominic on July 15, 2016, Dominica is entitled to receive trom Dominge 4+ 750,000.00 plus interest from June 25 10 July 15, 2016, by, 50,000.00 plus interest from Jane 25 to dine 30, 2016. ‘¢, >50,000.60 plus interes ftom June 30 to July 15. 2016. 450,000.00 with no fverest because Dominico paid te rote befire cue date. i a oe Atty. Ong a Sealan at was made in compliance with the him by all the creditors, payment was made after the obligstion has due and demandable and notice of payment was de only to him. to in the amount of F500,000, By dacion en ‘conveyed to C the ownership ofa ear with an agrced valve of P700,000. 2. The cbligation of D to Cis automatically extinguished The obligation of D to C is aot extinguished because ‘to sell the car from which the payment of, __P500,000 is tobe derived. ©. The obligation of D to C is automatically extinguished sand on top of that Chas to pay D P2000. Comect answer not indicated, 44, The following statements perain to cither payment by C_exssion or dation en pag 1. The debtors insolvent. 1. Ownership ofthe things is transferred to the, creditors. 1, Pluralry of creditors is required, | Obligations ae totally extinguished as rule Statements and IV perain to payment by cession. | Statements 1 and II pertain to dacion en paso: ‘Statements Il and IV pertain to dacion on pago 45. Josie. Susy, stranger tothe obligation offers to pay Calhy 100900 and the later accept the offer of paynent However, Dodge alwady paid Cathy P45,000. The nayment by Sesy is with the knowiedge of Dodge but ageinst his ‘wil. Sasy may recover from Dodge: 4 P100.000 and to subrogate to the guaranty bb. 55,000 and to subrogate to the guaranty €. 100,000 but not entitled to subrogate to Y $. 55,000 only because this isthe only amount redounded to the beacfit of Dodsie. 446. D is under obligation 10 deliver 10 C a Toyota Alts with {Dee no, 1234567, When D was onthe way to dive ie crit na destroyed at atime when Twas not yet indole ‘The Law presumes thatthe loss is due fo — ‘a the defective nance ofthe car b. A fornitous event. € defaulton the part of D ‘G.the flt or negligence ofthe debtor or D 47, A,B and C solidaniy owe X and ¥ P30,000. X remitted the ene obigtion in or of A. The effects (Phil CPA, 97- 2 ‘&._ The obligation isnot extinguished untl A collects from BandC. ‘b. The obligation is mot yet extinguished until Y is paid by Xof Y's share ofthe edit. ‘e. Aeannot recover from B and C because remission in his ‘vor extend to the benefit of B and C. 4. A can recover frou: B and C their respective share of the ett. 148. Corsignation is a mode of payment which extinguishes an B obligation. Which of te folowing & not a requisite for consignation? (Phil CPA, 87-1) 4. Actual consignation with the proper judicial authorities. +. Prlor notice has not been made. ¢. Existence ofa valid debi. guaranty Page 4 of 38 wowwanrteccomoh Saal “d, There must be prior notice of consignation 1 Perse macnn of OE aan 49. ‘When the debtor abandons and assigns all his pron! yb G favor of his creditors for the letter 1 sell to satis ‘rots, ths ist Phil CPA, 90-1; 90-2-M: 82M) a. Remission ¢. Dati t eeiycesbs ecromie 2B ate ling ios Paani md 50.008 2 Tipe ah pacses xe execution) to his creditors in payment creditors accept the offer and ae able rs er rman to Se 4 RMS trem is wou itly oF PI00000 99 = Die ee not tee ny 0 te eo Dis ae ay saponins faa : 4 Me sot tcame the omer of BP ws acetocremipmes 1 sowing ce a CBE Domine Ee ao a posemon of th mt Dias oe oe eae winopeiae! Poot Payment wade to 2 person that redounded 10 the oars Payment made to the creditor. Bank @ Joan of P12,000, ‘person that redounded te trisorainacy ebro fal to P4,00,000" die, Dust pay ABC Bank: s s*pr2000000.00.e.B36,000,00000 b, P4,00,00000. 4.P3,000,000.00, th onier tat condonation aay extinguish an obligation Hvsieing "a movable property whose value exceeds 5,000.00 is suliceat that dhe condonaton andthe acepiance are in writing, even a private one. b. Wis requced tat di condonation and the acceptance must bein a publi instrument. ¢. The delivery of the document evidencing tho debt is sulficent since the property movable. 4 The connie td he seep may te mate orally. 54. D ones C the following des: 26,000.00 due on ue 12: 7 Po.000.00 die on lune 15; 26,000.00 due anne 18; and 6,000.00 due on June 20. All debts are unsccured except the debe de on June 20 which sscured bya pledge of Ds dimond ring to C. By aggcement, the benefit ofthe term on the four (4 debi was made in favor of C. Assuming that D has P6,000.00 on June 18 and i ready to pay C, which of th folowing sites come? 1D may apply his payment of PE,000.00 to any of the debs due on Jane 12, Jue 15, and June 18s weld woffae i hme b. Day apply it only ro the debt due bases {Si rxtrtome hi a cD must apply the payment |, tessofde 8 ezpmndoeen oe cab D may apply the payment to 5 gia Seen Peete ed ee * the sme person, the mode of exingushing an obtgees is called: (Phil CPA, 86-2; 91-1-M; 96-2-M) RFeT Atty, OngERVICES, INC PROFESSIONAL SI DS e~ may 2019) ATTY ONG. a. Coniston 3 mene boi compet sro Nee ethe tee : : Dation in payment is m yyment and consignation ayo in satisfaction of a debt fn mane i ae iiton of ade mine ‘owes © PI,000.00 C tel é collection if he later larga en is ectnganes net © HE recorded. DF obigtion i & Confusion 7 4. Compensation ‘two persons in their own right, are debiors and ofeach other, there is, ‘ a ¢. Novation -condonaion 4. compensation “locos Sepia is notan element of Compensction: _ Debts to be compensated are due and cemandable “b. There is controversy or adverse claim over any debs t be compensated. 'e. There are two or more debts of the same kind, UTere are two persons sho are ereditrs ae! debtors of “each other. ‘the characters, of debtor and creditor are merged ir ame person with expect fo the same obligation, tere i: © Remission, ©. Novation - compensation 4. None ofthe above id, and Ai, wife, are legally separated. By order | which decreed the legal separation, Paw is @ fhonthly support of P20,000 to Ai and heir within the First fve days of We ron. i 0,000 by ay of @ busines len. On the other has not yet given Ais support of P20,000 fortis oi debis are already due. Which of the following correct? fate extinguished by legal compensation are already duc. compensation but mot Paw may claim compensation bu: noi Ai” “ane may claim compensation because the debts ot ofthe sare kind. 'P£0,000,00. Subsequently, D proposed to C Isat T assume his (D's) debi. C accepted the proposal of D. titution of debtor is known as Tindition. ‘himself to give B a car iB places amorg the top ee d . Subsequent hey agreed i the: “merely passes the CPA Board. n example of: (Phil CPA, 94-2) * ‘c. implied novation +4. Personal novation J js validated by the © The eriginal obligation although void ie Tei 2 and he detivery of § new ablation. Henee. C cam der sacks of tice ster D- 4, The new obligation is only voidable because D had 108 ye: performed the orginal obligaton atte time of foe novation, "Accordingly, the new obligation is bindim an € may demand the delivery of § sacks of rice from. [Bui the new obligation is annaled by @ proper action 66. The distinction hetween conventional subrogation and ‘assignment is that in convertional subrogation: (Phil CPA. ot) a Itisamere cession of right b,__An obligation is extinguished and another appears € The same obligation, without being extingaished, 1s transferred to another. Answer noc given 67. Dawes C. Later the partes agreed that instead of D paying CC, he will just pay X. This isan instance of a. Expromission _ ¢. Convertional subrogation. bh Delegacion —_—_d._‘Legal subrogation 68. A owes PIO.000. With consent of buth, C pays B 5,000. {Now Hand € are he creditors of A to the amount of P5,000 each, Suppose A tits only 15,000. Which is correct? (Phil CPA. 98-1) 1. and C should divide the PS.000 equally b. C should be prefered © Amay choose whom to pay 8 should be preferred 69, D owes C P50,000,00, Subsequently, D proposed 10 C that T will assume his (Dis) debt. C accepted the proposal of 2: “Assume that on due date. T could not pay because of his « insolvency which was in fact subsisting, but was not Known to Dor of public knowledge at the time that D delegated his debt. fn this ease — a. C can revive Dis debt because T's insolvency was already existing a he time that D delegated his debt, b. Ceean revive Dis debt whether or not he (D) was aware ‘fs insolvency since he (D) proposed the substitution &. C-eannot bold liable because his (Ds) obligation vas ceatinguished when he was substituted by T 4. The novation ix void because D dis not take steps t0 determine the solveney of T when be (1) delegated his deb ‘2h. These novations take place automaticaly or by operation of 1D. lass. Choose the exception: ‘Where a creditor pays another creditor, who is prefered. Where a third person who has no interest in. the obligation makes payment. with the consent of the debior. Where a third person who has an interest in the ‘obligation makes payment to the creditor. 4. Nowe of the above ed ert CONTRACTS J. The contract must bind both contracting parties; is validity ¢ 4x compliance cannot be left to the will of one of them. This is known asthe principle of 44, -miuality of eontract b, relativity of contract. 2 DOUT PACIAS: B a I give that you give &.consensuality of contrast, d. freedom to contract.tpulation 3c effect that the debtor 4 ‘Poald ain a servant ine Bouse and in the sys of C “her so long as she had not paid her deb, is void | ecause itis: Phil CPA, 91-1) ‘2 Contrary to good customs 'b. Contrary to public policy fe Contrary 0 law and morality & Answer not given, ‘These persons are bound by contacts, (Phil CPA, 85-2: = 2 | Coniracting panies &- Assigns b. Belts d. Allof them Requisite ofa valid cause: (Phil CPA, 85-2) — ¥e 4, Itmustbe lawiule. Itrmust be real 9 bb, Himust be tue 4. All of them + ered 50000000 from C. D dice without having paid fis Toan obligation to C. He left S, his son and he properties worth 2400,000.00. is liable 10€ for PSO0,000.00, b,. SisTiable tC for P400,000.00. ©, SisHableto C forP100,000.09. $$ ie not Hale at all because he should not be made to Shoulder the obligation of his father. F ome © P10 00,000. F dies leaving to the ony bev 04% Tiobes and lot valued at P7,000,000. S volunllY PAYS ( 1P10,000000, Desi: : a. inthe first pice, because the P1000 S is obliged 19 Pay ible fore debts 0 Sis under np obligation to pay C ops po is deb. “710000,000 because he becomes is peedecessr-in-interest Mable foe compelled to Tetum the excess of ano beau 1s eral ligation of an het F000 Pig of bis professors if S otal paid P10.000 000 Pome Pro.000,000 ihe excess of P3,000,000 T'S Pins the subject of on agreement between S and C sae es anja to S that be should lose his own sone of F3,00,000, “Tadeo owned a vacant Cones planned to pat up b. facet to a bigger lot were Stat D tverweck performance et Cividen i te Tease conbact which it exe With Poort She ewner of the bigger lot, Jn expectation of eer propery fox a pain ol, Ted leveled his lt aE tg smashed which cost im 720,000.00, an ane sie had. yet to. pay the contactor Later, owes creus canorted_ the performance, s0 Taed ere eaa non recor! 720,000.00 from he sus ara se Based on tie foregoing information, which of the folowing is weoret? Sorin) ta te ea contact took effect only between Star Circus and Legaspi, the parties to the contract of lease. Ween recover damages fom Slat Circus and 1 Sep reason of stipulation pour au HEE past pay his own contactor the amour of 20,000.00 because that is the obligation he alone contracted 10 Pay. ‘Tadeo. as an incidental beneficiary, has no rights ver Colma forsto~ the eieus contract. soos” 10, Mx, Santos offered 10 sell his Iand to Mr, 100,000. Mr. Calma accepted the offer and paid Mr. cuphiowte of ‘cana ‘P10U,000end Mr. Santos delivered the owner's the Transfer Certificate of Title of the land. Mr. CAAT vee ty reise the land in his name but the RAB ecko Mr. Cala for the Deed of Sale. Wh 67 Celms do? (Phil CPA, 88-2) ‘ b ¢ 4. comps Page 6 of 38 uw prte 1) Mr, Santos 10 return the canot 0 acta pai is not enforceable. rent because the cont Fe eee ro, arts 0 ee 1B oe Me el magi “No. ne em carich bids st the expense of ante.” ee rel Me, sutn exits Be Ded PrSele because the contrast is val : a Me calm may occupy and use the land as 8 buyer in good faith “re crags of contract according, 1 'M cccurrence ae i a. perfection, negotiation and terminasion i Ponception, consummation and birth C._ generacion, perfection and consurammation 4. termination, negotiation and bi erp, §ofered to sel his only lt fof for sn 100,000.00. ‘he offer by mailing bis letter & erence on June 10, 2012, On June 12, 2002, 8 revoked Meetoierof acceptance and railed his eter of revoceion 2 a Tune 4 15. of acceptance o ‘on June 15,2012. June 14, 2012 when S the same date, $ received the leter 14,2012 andthe letter of revocation 1 The contract was perfected ot ‘Recived Bi eter Of acceptance. seccivet act was not perfected because atthe time the ‘The stance was recived, the parties were no longer Of one mind Te contact was perfected on June 10, 2012 when B Senthis letter of acceptance ‘The perfection ofthe contract retracts fo June 1, 2012 when the offer was made. ‘Me. A. Santos signed 2 letter addrossed and delivered to Mr. #0) S-Aguas. The terms ofthe letter ae: + 1 Am offer t sella 500 $9, m. lot for P300,000.00. 3 ‘Anoption time up to October 31, 1991 for Mr. 8. Aguas ‘to raise the P300,000.00. Upon payment of the P300,000.00, Mr. A. Santos will execute and sign a Deed of Sale On October 31, 1991, Mr, A. Santos sent a letter to Mr. ‘Apoas asking for a new price of P3S0,000,00 forthe 500 39. fr lol. Can Mr. S, Aguas compel Mr. A. Santos to accept the 300,000.00 and make him sign and execute a Deed of Sale? Phil CPA, 92-2; 96-1-M) 2° Na, M8. i ot spt ofr of Mi 8. b. Yes. Mr. A, Santos is alread is Geral y estopped by his signed c. Yes. there was actual meeting of i aes ee Simulation of a covract may b i reine whe onic bd, oe or relative. It sof es do not intern 19 & mete voit bent & es conceal their true gzoemé astra etgven ene offered to B the sale of his house and lot ‘means of a letter. for 10,000,000 by?!" = At the same time, B offered ie same house and lot by way of to buy from $ aso. B hes rove! ‘ay of telegram for P10,000,000 Pa ved the offer of $ and § has also recei telegram of B. Is there a perf lsc epueiten boveen Sand perfected contract of sale b 4 3 No, because what offer occurred was not meses ce faan timely essential ele * = ene cht coseaton all present, No, bet he house and lt 4 Eiefect the cantenct it must be Een immovable to ven, ublie document, 6 e & Atty, ongPage 8 of 38 | ‘lesion of more than Yé of the value ofthe ‘object of the contract, «Those where one of the partes is incapable of giving ‘consent io a coniret. ‘& Those underaken in fraud of the crediors when the Ager xaot a ny ier manner cole he hls ue Those which eft to things under litigation if hey have treon.enicred into. by the defendant without the Inowledge and appeoval ofthe itigants or of competent “ical authority. 30. A guardian of B sold B's house and lot worth PAS0,000 for “px P240,000. PHIL CPA, 87-2) {The contact can be rescinded because of inadequacy of rive, ‘The contact cannot be rescinded hosause thee is no fraod mistake or undue inne, “The contract cannot be resvinded because all elements of contract are preven. ‘The contract cannt be rescinded because its expressly frovided by law as one of the contract camel be rescinded. ‘1. Andy is the representative of Babes, an absentee sels house and lot valved at P100,000 for only P60,000. The ‘contract is: (Phil CPA, 97-1) a. Vahd b. Rescissble” c Voidable 32, Which ofthe following contacts is required tobe in writing 4 whe enforceable? : # 4. An agreement that by its terms is not to be performed ‘within « year from the making thereof. b. A special promise to answer for the debt, default or miscarriage of another. fe. Amagreement made in consideration of marciage other than sputual promise to m ‘d._ Sales of goods, chattels or things in action ata price not Jess thar PS00.00 fe. Allofthe above. 33. On July 15, 2015, 4. Unengorceable ©. Void X entered into a contract with Y. On ® February 10, 2016, X discovered that fraud was committed atthe time he entered into the contract a fraud that viiaed his consent. The action for annulment shall be brought. (Phil CPA, 87-2-M) a. Within te years from the time ofthe awd. +b. Within four years from February 10, 2016 ‘¢. Within four years from the time A entered into the contract 4. On February 10, 2016 34, Leveriza, the owner of an apartment, leased the premises to “Ac Toribio, The terms ofthe lease provide for a monthly renal ‘of P6,000.00 which shall be paid by Toribio at the residence of Leveriza about two blocks from the apartment. For the month of December, Toribio went 10 the residence of Leveriza but the latier was not around to receive the payment, Not wanting to g0 back, Toribio left the payment ‘with Nograles, a neighbor of Leveriza, who promised to give www.ertc.com.ph b. The payment by Toribio ‘yas not authorized to recive the payment. ce. Leveriza can demand payment from Toribio for the December rental. 4, Torbio ean go after Nograles forthe amount misspent by Nogales 35. A contract may be enforeed by or against « third person, except 1 eT caso sipulaton pow aur "When a third person induces another to violate his contract. Incase of contracts intended to defraud creditors. |, When the benefit to the third person is merely incidental, 136, In order that fraud may make a contract voidable: (Phil CPA, 94-2) ‘It may be incidental but both parties should not be in pari dict . Itmay be serious and the parties must bein pari delicto 6. Itimay be incidental but should have been emplayed by both parts. 4. It should be serious and should have not have been ‘employed by both contracting parties 137, A month ago, S, 17 12 years od, orally sold his bicyele for {(P2,000.00 to D, his osighbor, who was only 16 years ol ‘The mother ofS, Jeamed about tie sale by § of his bicycle, and demanded that § give her the amount he received. § thus fave the proceeds of the sale to his mother who spent the Same forthe family's daly experses F, the father of B, also Jeamed abou the purchase by B of the bicycle when he saw it parked in their door and began using it almost daily sinoe B bought the bicycle. Razed on the foregoing facts, what is ro the stats ofthe sale entered into between $ and BY (F. Soriano) ‘4 Unenforceable because both parties incapacitated to enter into the contact. '. Unenforceable because the sale was notin writing. Validated ftom inception because of the subsequent act ofthe parent ofthe partes. 4. Voidable because while B was only 16 years old, S ‘was nearing the age of majority which is 18 years. 438. The following is considered fraud or fraudulent: (Phil CPA, a) ‘8. Failure to disclose facts when there is duty to reveal them ‘The usual exaggeration in tre, when the other party had the opportunity to know the facts. Mistepresentation made not in bad faith. ‘Caveat Brptor” ot let the buyer beware. 39, There shall be no reformation of contract in the following 1D eases, except: Phil CPA, 96-2) a. Intestamentary wills b. Simple donation intervives with no condition being, imposed ©. When the real agreement is void 4. A contract of sele fraudulently made as a contract of lease 40, Mr. Burgos sold parcel of land to Mr, Javier for P200,000, “A Mr. Burgos delivered the transfer Certificate of Title of the Jand to Me, Javier. Later, Mr. Javier wanted to registers the land to his name and he needed Deed of Sale, What can Mr, Javier do? (Phil CPA, 89-1) Atty. OngEg fs g s sisted basd'bn the contract bera § 4. tieconmact isnot yet reseinday, ne Somat beau ‘The tand can be registered because the contrac is valid and an be attacked collaterally-in land registration Proceeding, Nj; Manang, the guardian of Bata, minor, tought the fi B harvested from the fshpond of Bata for P7400 oe The fish, however, had a value of P10,000 ‘ | 8 The sale is rescissble hecause Bata suffered a lesion by >, more than one-fourth ofthe value-of the Osh sod . The seis voldable because Manang ie daqulied to ae = -€- The stle is unenforveable because Manang sold the fish >, Mithout approval ofthe courts. . > di The sale is Void because the object is ouside the |." commerce of een. 13. Mr. Esguerra,s former government employee, suffered from (D severe paranoia and was confined in the mentel hospital in IWBI. After his release, fie was placed under the ‘guardianship ofhis wife to ehable him to get retirement pay. In 1984 he became a mining prospector and sold some mining claims. In 1987 he sued to annul the sale claiming ‘hat he was not mentally capacitaled at the time of sale. The ‘ale in question was: (Phil CPA, 93-1; 97-1) * e'Voidable | * - & Void 4. Valid , Porpolio;a wealthy husinessman, had often paid the debts of ee famity’s. good, name, One day, Porpolio: received « text |. mmessnge in his cell phone from Carton a benker, informing ‘hj that Evvelop hd obtained a Tosn froin te bank but fallen behind in his payments, Porpoli called him and seid Don't worry, ithe doesn’t pay in three months, Pil bé the made any payments and that Canon was demanding payment ffom Porpolio.on account of the promise he had | “made tree months before. =, * ‘8 Carton «may enforce. paymént against Porpolio on sceount of his promise since he had been paying off the + other debts of envelop. = a ae his promise is uoenforceabie. ae », & Carton may enforce payment against Porpolio as the ‘oral promise is sufficient agreement between hem. The requirement of writing is only for convenience, 4. Carton may enforce payment from Porpolio because as © a wealthy Porpolio should protect’ his ‘name and that oShis family. ‘ es ‘ohe to pay”. After Uwee months, Carton sent again 2 text _ message to Porpolio to inform him that Envelop had not 45. Stonéy, 17 years old, suffered a deep cut on his eyebrow ‘during basketball game. He requested one of this toansuatis to-callDr Ramos wiose clinic was just a stones throw the basketball court, Later, Dr, Ramos sent abil o Stanley ‘mounting to PS00.00 for the services he renderede Sttnkey ‘refused to pay bil, claiming tht, a3 a minor, he was not liable. The charge was a reasonable amount. (F. Soriano) “& Stanley is not lable because he is a minor and thus incapable ofpving consent to engage te services of the doctor. +, Stanley is fable although he is a minor because tbe contract involved a nocosar” «Stanley is liable only when be reaches the age of majority, 4. The tomate ste ne able becuse it was he who personally called the doctor. 46. Contracts entered Tnto a sate of drunkenness oF during & C' hypnotic spelt are: (Phil CPA, 93-1: 97-1) . Void . Voidable & valid Legal 47, Cacilio had Ricardo kidnapped and tortured Bduaréo for refusing to sel his (Eduardo"s) laid to Cecilio, Eduardo who could no longor ear the physical pains inflicted upon him signed a document of sale in favor of Cecilio, This sale is (Phil CPA, 91-2) ‘ , 2 Void ©. Valid . b. Voidable 4, Answer not given 48S offered to sell to B his house and lot for P10,000,000, In, ) onter to pressure B into buying said house and Tot, T, a-very ‘good friend of S, threatened B with death as a result of ‘hich B accepted the offer ofS. It tums out now that the ‘market value of the house and lot is P15,000,000. Is the contract of Sand B valid? ‘The contrac is vlid since it is very clear that $ did not apply the intimidation, '. The cootract is voidable because the consent given by B {is anyway vitiated even if the intimidation was employed bya third person ©. The isiue of the contract being voidable is not relevant bectuse B will not have the contract avoidable-because itis actually favorable to htm. €. [his not B but Sior T who can file the action for annulment, 49. Reluctantly and against her good sense and judgment, ‘D_ Rosemarie entered for the delivery of Stables to Corazon for A price of P15,000. Coriract is: (Phil OPA, 93-1; 97-1) a. Void ¢, Unenforceable b. Voidabie 4. Valid 80. A has a daughter B; X has a son-¥. A, B, X and ¥ agree C together that'Y will mary B. The agreement is oral. 1° ~ Inter on refuses to marry ¥ who as spent forthe necessary ‘Wedding preparations and X and Y bring an action against A 4nd B, wil the ation prosper? Desi: (Phil CPA,'87-2) % Between ¥ and B, the action will not prosper because b. Itesat hon hen yl me . Incase X, the action will ~~ tireement which was made orally fs ered ‘based onthe consideration of mariage, to A and X, che action will not prosper because the azrepment is not enforceable as it was not they ‘who ‘mutually promised to marry each other, % 4 The action of X and Y: against A and B. because the agreement is based on the consideration of ‘mortage other than mutual promise to mary, ‘EXCEL PROFESSIONAL SERVICES, INC. at. c 5 ae F disappeared without his whereabouts having been known somite in 1994. Whereupon in 1996, W, his wife sold his house and lot worth P10,000,000 for only 7,000,000 in favor of T in order to support the family. In 1998, F resurfaced and began staying with his family. In 2003, F decided 10 file an action to rescind the contract with T. In this ease: ™ ‘a: The contract of W with T is valid ‘and, therefore, rescission will not be available as a remedy. IEE can Yetumn the P7,000,000 to T and the house and lot thas not been sold toa buyer in good faith, he can validly ask for rescission. ‘Even if F can retum the P7,000,000 and the house and {ot has not been sold io a buyer in good faith, rescission ‘will not lie because more than 4 years had elapsed from the reappearance and, therefore, his right to rescind has already prescribed. 4. Correct remedy not indicated 52, Which ofthese is not sibject to reformation? 1. Simple doriations inter vivor where no conditions are imposed. Last wills and testaments : (Contract where the real agreement is void. ‘Where the fraud or mistake prevented a meeting of the minds . All ofthe above » 4 . 53, in a written contract of sale between S and B the true © intention of the parties was not incorporated dub to the stake of S but where B js innocent, Assume that there was without B ‘a meeting of the minds belween $ and B. Who can bring the action for reformation? . a. Borly ¢, Both Band § b. Soaly 4. Neither B nor S 54, Wealwoman, agreed to live with H, 2 man, as the wife of H the benefit of marriage in exchange for the monthly support of PI0,000.00 that H would give to W. Bott. H and W are single, of legal age, and there is no legal impediment for them to get married, Their parents have no objections to the two getting married, Based on the foregoing information, ‘which of the following statements is truc? ‘a. "The agreement between H and W is valid because they can legally get married if they want to ‘The agreement between H and W is void for being contrary to morals, Hmay legally demand that W live with him as his wife. W mey legally demand that H give her the monthly support of P10,000 that be had promised. -Rescission of contract eas take place in this case: (Phil CPA, 93-1; 97-1) ‘a Waer the things which are the © are legally in the possession of third persons who acted in bad faith, b. When he demands rescission can return whatever he + may be obliged to restore. When the party sccking resolution can perform only as to part and rescind as to remainder. 4. When the seller cannot return the installments paid to him by the buyer. B. 4. 56. The following, except one, are the characteristics of void o fk inexistent contract. Which is the exception? (Phil CPA, 93- a 1 ‘The defense of illegality of the contract is available 10 | third persons whose interest fs not diroctly affected. They are not subject to ratification si ‘The right to raise defense of illegality cannot be waived The action or defense for declaration of the nullity x inexisteace ofthe contract does not preseibe, 57, Which ofthe following coniracis is valid (Phil CPA, 97-2) dD Page 10 of 38 object of the contracted” * p 22) (May 2019) atry. ‘Ofal contract of ageney giving authority 10 an agent to sell the land belonging to the principal Oral partnership agreement whefe immovable property in contributed. ‘Oral contract of sale of an immovable propery entered ~ into by an agent who was given authority orally by the principal Oral agreement to answer all expenses for the wedding reception if A marties B. . 458, This results in the ratification of a contract violative of the Statute of aud: a, Receipt of benefits under the agreement. bh. Failure to object to the presentation of evidence proving the oral agreement . Bath (a) and (b) 4, None of (a) and (6) 459, 8 sold to b P900,000 worth of opium which the latter has pal 1 2 4. ay sald bu Shas not delivered the piu. ary i ape § by spel performance to delve he Pa cannot compel §'to deliver the opium, he can at eat ve the return of his P90, 000; ecm om. only posses Sandel Et That sft Deepens brags AGS ‘The government can criminally prosecute S and B and ‘also confiscate the opium and the P900,000 as the instrument and fruit of the erime respectively. . b. 4, CONTRACT OF PARTNERSHIP ‘When cash or property worth P3,000 ar more is contributed as capital the Articles of Co-partnership Shall be in a public instrument and registered with the Securities and Exchange ‘Commission. Ifthe said requirements are not complied with: (Phil CPA, 89-2) ‘a. Itwill be rendor the partnership void. It will not affect che liability of the partnership and the 6, parmers thereof to third parties, ©. Itwill nt give a legal personality to the parmership. twill give the partnership a de facto existence. Three () of the following are similarities between a partnership and a corporation. Which is not? (Phil CPA, $8- 2; 90-1; 90-1-M) ‘2. ‘The individual composing both have litle voice in the conduct ofthe business, Both have juridieal pérsonality separate and distinct from that ofthe individuals composing them, Like a parmership 2 corporation can act only through agents ‘Both’ are organizations composed of an aggregate of individuals: ‘Which of the following statements is not correct? (Phil CPA, D ‘A partnership contract is not covered by the Statue of Fraud. ‘A limited partnership is one having at least one general ‘parmer and onc limited partner and the limited partner shall not be liable for the obligations of thé partnership, ‘A limited partmer who takes active part in the management of the firm becomes liable as a general partner. "The contract of partnership is void if it contains stipulation which excludes a partner from sharing in the profits ofthe firm, a b, 4, Which of the following. stipulations in a contract of C. partnership is valid? www.prtc.com.ph a, A stipulation excluding a capitalist partner from profs ae | RFBT Atty. OngONAL SERVICES, INC. A. stipulation exem; losses, 5 D 93.2) Parmer and the limited partner ‘hall not be liable for the obligatic A. Emited partner who ‘hes act Management of th frm besos )F the partnership, active part in. the liable 85 4 general The contract of parmership is void i am ip is void if it contains Stipulation which excludes a aire Site setter tam Partner from sharing in th © following persons are disqualified 10 form a universal Partnership. Who are the exception? (Phif CPA, 88-2) Brother and sister b, Husband and wife © ‘Those guilty of adultery and coneubinage 4. Those guilty of the same criminal offense in the Partnership is entered into consideration of the same, A.B, C and D are partners where A, B, and C contributed 1,000,000 ‘each and D his services. ‘The partnership is engaged in the manufacture and export of garments. Due to a very sttong typhoon, the entire roofing of the factory was Jblown by the strong winds and if not repaired immediately would aggravate the damage. A, B,C and D agreed on an additional contribution of F200,000 each in order to save the business fiom imminent loss. Which of these isthe correct statement?” 3. Dis duty bound to contribute 26% more of his time to the business ofthe partnership b. If Ano longer has money, he can be complied to sel his inleest inthe partnership to the other pares. & B can question the’ decision because he did not vote for, the additional contribution. 4. if C still has money, but refuses to make the ‘contribution, he can be compelled to sell his intrest in the| ip othe other partners. Which of the following statements is false when no onc among the partners was appointed as manager? ‘Each partner will be considered as ‘agent of the or tb Any one tay make an important atetion in the immovable property of the partnership without the ‘consent of the others provided it is useful to the pecinetship. ce. Incase the act of one parter is opposed by another, the partnership composed of A, B and ¢, the contribution may © ‘eas follows: (Phil CPA, 97-2; 98-1) a. A cash (limited partner; B - cash (general partner) services (gencral parner) b. A - property (limited partner); B - services (general partner); C- cash (general partner) ‘A: services (limited partnet);B - cash (general partner) 4. A = cash (limited partner): B - property (general partner); C services (general partner). 52, The rule is thatthe designation ofthe share of the partners in a 4 c- scivaniage since be is wellknown in the business (the profi and loses eamot be entrusted to only one of the oramunity, (F Soriano) Partrers but to all. However, the rile allows the designation 1. John Solands shall have all the rights of a geneial ofthe share of the pariners to be entrusted to a third which partner. can be questioned or impugned by the partners if such 1, John Solands shall have all the liabilities of « general designation is manifestly inequitable. Within whet. time partner. should the action or question be brought? ‘Based on the foregoing facts: ‘Within one (1) month from the time he had knowledge, ‘2. Both stotements are true, 'p. Within eo (2) months from the time he had knowledge. . Both statements are false. Within tare 3) months from the time he had ©. Statement [is tru; Statsment Is fase. knowledge. 4d. Statement is false; Statement Il is true. <4. Within six (6) months from the time he had }46. Which of the following omissions will make a partnership _e,_Within one () year ftom the time be had knowledge, formed asa limited partnership liable as a goncral $3. A limited partnership was orally agreed upon by A, Bund C 1 partnership? * Seperation is that a partership: a. ismanaged by a board of directors, . ischaracterized by the principle of delectis personae. ‘¢,_has the right of succession. 2 4. may be dissolved only withthe conseut of the State. a | RFBT Atty. ongATTY.ONG — XCEL PROFESSIONAL SERVICES, INC. = Rights of the comporation to continue a a juridical entity for #2 c. Stock exchanges the term stated In the articles of inorporaon despite the (12. The following sintements peraining 10 We PO oO to you death of any stockholders. (Phil CPA, 88-2) ie a ; corporal to issue non-voting shares were ee for evaluation: aaa 5. ‘Three emaptive rightd. Right of existence 1, Those classified as "redeemable" oF “preferred” may Be ee (3) of the following are attributes of a corporation. 3 deprived of the voting right. ‘ ‘Which is the exception? (Phil CPA, 89-1) 5 Ik All shares of the corpoation may be doprived of the a. Anartificial being voting right. |b, Has the right of sueession Il, Nonveoting shares may vote in certain corporale act ¢, Has power, attributes and properties expressly fike in the amendment ofthe articles of incorporation. i authorized by law or incident to its existence. a Land Tare true, Creaied by agreement ofthe cocporation. Band it are tue 1. Which ofthe folowing isthe disadvartago of forming a Ac, Land Tare tu. conporation’? Phil CPA, 932; 942; 96-1) a. Al statements are tu. a, The free and ready transferability of ownership 1D 13, the aticles of incorporation differ fram the by 1}. The shareholders are not liable for the debts of the the articles of incorporation OPE 4 business i the rules of action adopted by a corporation for its ‘Because of the power of succession, the existence ofthe intemal government. Te not affected by the personal vicissitudes of the __b, adopted before or after ncoeporaloh, ‘ ‘individual shareholders, ea condition precedent in the acquisition by ay ‘4, The subservience of minority stockhollers tothe wishes Corporation ofa juridical personality ; ‘of the majority subject only to equitable restraint. 4. approved ‘by the stockholders if adopted after 5. These do nat form part ofthe curstanding capital stock: (Phil AS Incorporation. 14 Choose the minimum requirement of the Corporation Law 19 CPA, 92-2; 96-1) a Bona Shares Founder's Shares aoa te ot (Phil CPA, #7-1;87-2-M, 86-1; $8.2 f Tian Shares Redeemable Shares ore, 89cM 90-1, 90.2-M; 92-1-M; 4-188) ie oe nts pe! x ooporsng et, Athored Subse! PA Trey ae ae ice rand in nehing re well OF Capit Copital | the-company: (Phil CPA, 98-1) a a, P100,000 20,000 ‘PS,000 | eeseeeeedstcks founders stock ptooe0 20.000 P4000 f fb, stock in escrow <4. promotion stocks c. P100,000 P25,000, ‘PS,000 - |, This share can be acquired by the corporation which issued 4] d, P100,000 25,000 6,250 ne | ene paekpeniaien 7 heute cineapman of dee Coeration prove a fonder ane Coe arsscnace of 100000 shares witout pe value price . reloomable shares fer shar of P1000. At the time of incorporation © parvahe shes etacroon an palo capital shou ot be lors has Secure PbO .00 and P62 00.00, especie performing? b. PI,000,000.00 and P250,000,0, respectively. fs: Corporations organized by private persons Corre fine sad for profes to pivate person are: (Phil C&P 250,000.00 and $250,000.00, respetivey {d, 250,000.00 and P125,000.00, respectively. CPA, 89-2) a, Public Corporations: 16, Three of the following enumerations are not authorized to Ip b Government Controlled Corporations ‘seus no par value shares of stock. Which is the exception? (Phil CPA, 87-1) & Quasi-Public Corporations Searepetont ‘a. Insurance companies. Public utilities okt Compryaniage ofre-par valve shar ofswock 4b, Industrial companies d. Trust companies “Which is the exception? (Phil CPA, 90-1) C. 17, Corporations organized by private aeeae 1 No par value shares allow flexibility In pric. Crt ee as oe oe |b, Thestocldhalders of n-par value shares we relieved of CPA, 89-2) profits to private petson are: (Phil ¢ | erconal liability for npai stock sabserieon. Public Corpratons c._ Mallows the isue of socks in exchange of property. tc aoeeees ee icy § tale cafe. pss remedy ofelst ©. QuPuble Corpaations from the evil ofover capitalization and stock watering. 4. Private Comporation ow fg sao rains» ml 1 Sean ewe ot pp shes i fore the Phils, s0 they could odern mdisal serves. 1 ix crs ws deal fly'pld tag pte fe eas ale oe ae - , acta cn ea ee consideration Jess than PS.00 per share a 60% ‘ > pean ts ce a companies, insurance companies, public utilities and cone building and Joan associations. aupane 44. Subscriptions to no-per shares in excess ofthe issued 19, It Statement: A maj rectors pe ajoity ofthe ai me ‘al fvalabe for dison “ss capontons erga rs ee oa stock dividends, : Soaee ioe «mec tmorton am robes fom kite mst 2d Skat: Ayo or moe portions my bes A ees ‘inane comoasee = riety by be tbe pees xen amet 2. Ba Public utility corparations, same time, (Phil PA) secretary and treasurer at the Trust corvorations www.prtc.com.ph . band Wand 4. not valid with respect to X; valid with respect Y. ‘37 A corporation erested in strict or substantial conformity with 44. Which eause of vacancy in the board of directors may be AA statutory requirements for ineorcoration and whose right ¢, filled by the board of directors ifthe remaining directors sill to exist as a corporation cannot be suecessfully attacked Constitite a quorum and by the stoccholders if such quorum even in a direc proceeding for tha: purpose by the Stato is does nat exist? ‘ Known as: (Phil CPA, 91-2) . & Removal ofa director. . De jure corporation Resignation ofa director. = ', De facto corporation a Increase in the number of directors. . Corparation by estoppet 4. Expiration ofthe term of some directors, 3 | d._Answernot given 45. Ais a director and owns 50% of the it ‘outstanding capital. Boia beri wsotx ngekieefic ne euitans ot | oct oration which is engaged in the trading of | () 2ée facto corporation? (Phil CPA, 87-2) A in be ompurers. Ace Corporation purchased computer tables | The eee of a val” ste dee which « Se Top Copernic gee {ten wth some of purposes cuzin can ays 13 a a auttndag eal ect he ei ae be formed, incorporation of both corporations provide for S directors Im 5b An ‘lewpt in good itn to form a cororaion the approval of the correct forthe ld purchase no according othe requirements of aw. attend the mecting of the board of directors of Age. cA wer of ofpras powers There mist be atansctn Corporatio, wl in the mocting of fe Donnie dence of business in some ways as iit were «corporation. ‘of Top Corporation which was ealled for the same purpos 4 The organization is not registered inthe Seeuites‘and _direclors A,B, Card D were present Wolo se Exchange Commission s for the approval ofthe contract. Assuming tha: there Is me 39. In which of the following corporations will these composing. fraud and that the contract is fair and reasonable under ‘the the corporation be liable as genera partners? ‘eumstances, the contact between Ace Corporation aad Corporation by preseription. ‘Top Corporation is: 5 De facto corporation oval ig ©. Cosporation by estoppel. ._Yoidable atthe option of Top Corporation 4 d. Defic heey A © unenforceable against Top Corporation, xi 40, In the following cases, the preemptive right of the ‘4. void because corporations with interlocking directorate {) stoekhoiders ean be denied «choose the exception. should not enter into contract with'Each other a. Ifitis denied inthe articles of incorporation. 46, One of the following is not required and does not fom >. Ikthe increase in authorized capital stockist enable the) ofthe three-fold duty of drcctoe ofa > Crporlon Wo eipl witha a regal akebeega ‘one? (Phil CPA, 92-2; 96-1) ae by the public 2, Duty of Diligence c. by a ois 4122 of the itsanding ses wom OB Bot alasain : % * iporeass in authorized capital stock isto be exchanged ¢._Duyof Obedicace Seapine aimcat teen me Duty ofefceney 7 Fa majorly ofthe oustaading shares where 47, The power to deny pre-emptive rights as ay a rcee in eutiocoed caplal stock Ist bose! fe Q telaiten a8:(PhICPA, 98-1) the payment fcomorie debts illo be contracted a. Tnsidental power rere ese purposes can be combined in just one” b, Express power o CE eee ‘fai Came es sy oo ‘rust purposes: stockholders be denied? wowwprtecomph = Saal®1EVbe Fight bs doniod in the articley of incor IE the mechs hor cap eal Wt : wien ng lth law requiring subscription h 8 vole of 2/) of the ow titandl ‘ ng. sharon where the tran An authorized SApHAl stoek shall be: exehanged ‘property needed for a CORPOHALE Purpone, 4. By Vote of 2/3 of the outstanding shares Whine the rsa thoi opi tock shal be wad pay ee - Previously contented ox FoRvate different InNernal mater of the vorporaio w ‘such as calling and defining the conduct of the raing of ams and directors, (Phil cP i M. ed i 8 Roard of dirwotors be Bylaws © Aiticle of Incorporation Proxy 50, Which of tho following by-laws ts valha? f) & A by-law whieh provides that one ned not bo the ‘owner of share of stock to become a director ‘of the corporation, F 1b. A byslaw which provides tbat that exe must be the owner of more thu one share of slack of the Corporation to become a director. &, A by-law which provides that one can continue to be a director throughout his term although he has disposed All his shares in the corporation, A by-law whieh provides & preaior number of directors than that stated in the articles of Inoorporation, 51, What is the voting requirement for the adoption of corporate: — pee i ‘a. Majority of the outstanding shares. bh, Majorlly vote of the directory plus the vote of » majority ‘of tho outsinnding share. Maloy vet es lee vol 0 290 he lin 1 4 Ginantmous vote of the incorporation Hf fed together f ‘with the articles of Incorporition ; and a) C2. im es ‘a ‘corpornie by -Iavis, which of the following yrroot? (Phil CPA, BL) apt bylaws, maori of Hw oieanding ex in needed, b 50 cologne 10 the Board of Directors or trustees the power 10 amend or repeal the by-laws, 2/4 of the ‘outstanding capital stock is needed ‘g, Torevoke the power delegated to the Board of (2irectors to adopt new by-laws, 2/.) of the outstanding cophlal ‘of hs members ls nea ‘ iy ioe ‘or repeal the by-laws, majority of ‘the Board of Debtors and of te outstanding capital sock Incurred indebtedness of the corporation, Served fio untestricied roinned earnings 8 lawyer on the propore Increase in cup stoek of ny invests fad in any exer corporation anit Ro a et 45, p 56, p a D 60, 6 Thare is rnalorty vole ofthe curd of Livers, Thesis ary vote the ad Ona of the Solway hoes ah rome sibunaer *ypr0%al il CPA, 9) at 1 Merge o« consolation 4. Changs of emponste nace © Investment of conrate Sunde Sor pips cx « the ma panpone ofthe emporio 4, Declaration of cash dividend, ie ow many numbers of voces ofthe tow ok Ciecons ws Tea cage tne of copra Oe CPF 1) LD whe ofa memos of te Boar 20 vole oF al present 4 Maloniy voe of al proven comeing 9 ua. 4. Majority yore ofthe Board The voring proportion rogues enabling» coeporsion ¢ inves his ands In my ten ego on ras or Any purposes cer than its primary purpooe: (Piss CPA ty j A 218 vole of the bowd of lees set ated inajoity ofthe ousaeing cape srk. ». Majority vole of the board of decor wx ratified Inajoly ofthe sockbolden. Majority vole of the board of dicen mod rib Dh ofthe ick 4. Majority of the boxed of divers ant mation oy 28 whe of the oustanding capital soc AAs a nile, any provision or text ite fa oe ates Incorporation maybe sna by the Bowed of Diecons¢ tnusees by PNICPA, 962) 4 Unanines vote Majority vow 6 3h vole 4 we | Which of the following corporis acts soquives the approw: of the majority of the outvtanding capital stock or of @ metsbers ofthe private corporation? (Phil CPA. 97-2) To invest corporate funds in mneter corporation ¢ business b. To adopt by-laws 6, To dissolve the corporation 4. To amend or repeal by-laws ‘Any director of « corporation may be removed for offic by 6 vote of the stockbolders Holding or representing: (Pi, “CPA, Wel) 1, majority of the sctholer's prevent b, Sih of the outstanding coptal sek 6 2/0 of the xtstanding capital sock «6. majority of the outetanding capital tcc. ‘AB, Cy DE, FG, Hand | ae directors of Strong Cemex ‘Corporation "whose articles of incorpomation wove for 9 drecons. In the mueting of March 200, vectors / B,C, Dand were prevent to approve a contract for purchase of cement bags fiom E who deals in the sa product, The contract was deliberaied upon extaustve hy the sald directors inthe mesting inching E. When 1 voting 0k place however, only A, B, C an D who fou the conttact {al antd reasonable under the cincumatence ‘voted for ts approval. ‘The contract between the corporatic and i Valid tnd enforceable, b, Voldable atthe option ofthe corporation, 6 Unwnforcesbe ayainst the comporatioa. 4, Void beemuse a conporetion must eh enter into contract with any of its directors since Airectr aces 8 position of trust Cal RFBT Atty. Ong* 2019) ALY (CEL PROFESSIONAL SERVICES, INC. 62. One of the following acts may be performed by the {) executive commits ofwcorporston Wiech isi? & Declaration of stock dividends. . Filling of vacancies inthe boar of directors. & Ament or repeal of he by-laws of adoption of new by-laws 4. Approval of contacts in the ordinary course of business, 63, This is an authority to vote in a corporation stockholders 4k meeting: (Phil CPA, 88-1; 88-2.) a Proxy «Certificate of stock b, By-laws 4. Shares of sock (64, Right which the existing stockholders or corporation cannot be deprived without the consent oftheir right to subscribe or to purchase now stock issued by the corporation or unissued ‘orignal stock, in proportion t0 their holings before i can be offered t others: Phil CPA, 85-2: 88-1-M) a. Right ofredemption” «Right to purchase b. Preemptiverignt None ofthem 65. Any stocktolder of a corporation shall have the ight to || lissen and demand payment of the fir value of his shares |? Gn three of the following corporate acts. Which is the | exception? (Phil CPA, 87-1; 95-1-M; 96-2-M) | ain case of any amendment to the anicles of | i en which has the effect of changing ot | restrctag the debis of any stockiolders or class of shares. : |b, Imease of merger or consolidation | ein case of sale, Jase, exchange transfer, moresge, f pledge or other disposition of all or substantially all of ‘the corporste assets and property of the corporation. din case of incurring, creating or increasing bonded indebtedness. | 66. The right of appraisal on the part of stockholders applies in | © this corporate act, except: | ~ a sale ofall assets and properties, Stanger ocemolatn 3 Ore i pcapegriacinns | ‘gaint certain shares, 4, Increase or decrease in authorized capital stock 667, This fs a document of a corporation acknowledging the Fr terest of a stockbolder inthe corporations asses (Ph cra, 88-1-M; $92) Cerificate ofstock — c. Capital stock bShares of sock 4. Stoctholder's equity 68. The following are metuods of dissolving a corporation: (Phil CPA, 86-2; 91-2) a a, eee b Faire in Gm dare of issuance of certfcae of D (2) yeas from articles of n00" 8 Th athe rights denied in she ates onc is fr # Te he increase in auton’ airing ubsoPuoe purpose of complying 5 by the public. shares wher oy anew ionae oF oa oek sl be exchanged increase in authorize z eee ery needed for a corporate PUTS were the By a vote of 2/3 of the outstanding ot io pay inerease in authorized capital sto the corporate debts previously com! ¢. Allofthe above -) deer ae This corporate act is within the implied Po corporation - ie Peas done in the ordinary or unusual Course of Busine ‘st dene help o protect employes, xetdone t increase or expand business =o agree of finds tn another corporation oF fOr purpose other han the main purpose ‘ Allofthem 3 5 f surplus 73, Stock corporations are prohibited ftom retaining puoi in eons of one hired percent (100%) of their paid © FPcapitat siock. Three of the following enumerations are txceptions, Which does not belong to the exception? (Phil 2 inch ons projects 2 When sted by deine crporte pasion iets ‘or programs approved by ofdiecers. b. When there is pension plan as agreed in Collecting, | Bargaining Agreement. c. When tie comporaion is prohibited under any loan agement with any financial institution or oreditor hether Ideal ot foreign fiom declaring dividends ‘without ts consent 4. When it can be clearly shown that such retention is necessary under special circumstances obtaining in the corporation, such as providing for probable contingencies. | 74. The Morlan Realty Development Corporation has a capital a C__ stock of P1,000,000 divided info P10,000 shares with par "ao ch 00 sae ae amen eck znd 5,000 shares are 10% preferred stock. In 2015 there was no ‘declared dividends but in 2016 dividends in the amount of 200,000 were declared. The holders of the prefered stock are entted to receive: (Phil CPA, 90-2-M) Ee 8. PS0,000 if cumulative, non-partcipating . 125,000 ifnon-cumulatve, participating «. 125,000 ifcumulative, participating 4. P100,000 if soa-cumulatve, non participating 75. The distinction between subscription of shares onan 3s eese 7 and the corporation to buy shares of stock from stipulated price. : . It takes place before or after incorporation generally aid in instalment or upon eal. cin case of insolvency of the. cog the corporation can no longer perform its obi Geliver the cefifiate of stock. 4. Answer not given. 76, For qualifying A to be one of the directors of X Inc (© share of stock is issued to him. The agreement i tha retransfer the stock on ceasing to bea director. A |B certificate of stock as a security of a promissory ‘another transaction. B is not aware of the seeret ‘of A to reuansfer the stock on ceasing t0 be a » Desde: (Phill CPA, 87-2)PROFESSIONAL SERVICES, INC. 8 has how innocent B is ofthe defect of tile of pi rio Seguire ownership, & Having clothed A will apparent tite over the stock sa ver the stock said X Ine, is estopped from asserting is tie-over i hens Bhasabetter right to the share than X Ine ‘B acquired no beter tight than that of the transitor of Share in spite of innocence of the infirmity o eae irmity of the Ti: One of the following is a limitation on proxies, Which is? C @Phil CPA, 88-2) ee fakes ~t Proxy acquires legal title to the shares of the WEF stockholders. ss “uye#=. A proxy votes even in the presence of the stockholders © The proxy is voted only for the meeting for which it was +4. A proxy-is imevocable at any time, 78: The subscriber of unpaid shares which aré not delinquent shall be entitled to the following rights, except the right tor a vote i. inspects corporaté baoks.. © a Stock certificates 4. dividends 79. These statements pertaining to the meetings of directors we _ © presented to you for evaluation: 1. Directo:s or trustees may attend or, vote by: proxy at ‘board meetings. a IL. The articles “of incorporation or the by-laws of a > comporation may provide tor a greater majority for its quorum during the meetings of the board of directors. Both statements aretruc. ‘ Both statements are false. Statement {is tue; Statement Ili fase. Statement | is false; Statement 11s true ‘30. A stock that is issued without consideration or below p2r ‘value oF the issued price is known as: ‘a. Matered stock. ¢. redeemable stock fh delinquent stock. _—_d. preferred stock. 81. A non-voting stock may vote inthe following corporate acts, except in case oft approval ofthe compensation of directors. b. merger ar consolidation . increase or decrease in capital stock. 4 sale, lease, exchange, mortgage. pledge or other disposition of all or substantially all of corporate 52. Winner Corporation, a dealer manclaciurer of garmen's and with principal office in. Caloocan City, held, the, © Meeting of is stockholders in Nasugbu, Batangas, in conjunction with its annual company outing. Stockholders ‘owning 75% of the capital stock were present, while 25% ‘were duly represented by proxies. In the said mecting, the by a vote of the stockholders represeating 80% fof the capital stock, approved the purchase of sewing tachines worth P5,600,000.00. The bylaws of the Corporation provide that contracts in. excess of P3,000,000.00 must be ratified by the stockholders, contract for the purchase of the sewing machines was unanimously approved by the board of directors before it was presented to the stocklolders for ratification." What is the status of the contract for the purchase of the sewing ppre ‘machines? a. Void. ©. Unenforeeable, b Valid. 4d. Voidabie. 83, Which of the followi statements pertaining (0 non: C. stock corporstions i in : 1? Page 21 of 38 (May 2019) ATTY. ONG 4. Members may vote by mal 4. The number of trustees may be more than 15 © Any incidental income that it distributed as dividends to its members, The meetings of members may be held outside oF municipality where the principal off corporation is located 84, One of the distinctions between a proxy and a voting trust “ft agreement is that in a voting trust agreement: the representative acquires legal tte to the shares to be my be voted, b. the exercise ofthe righ to vote is limited to a particular oe (rene [8 the representative cannot vote if the stockholder is { present during the meeting 4d. the agreement need not be recorded with the Securities and Exchange Commission 85. Which of the following statements pertaining to treasury shares is incorret? a. Treasury shares are not part of subscribed capital stock ‘Treasury shares may be disposed of at a price lower than the par or issued price provide itis reasonable and approved by the board of directors, «Treasury shares are not entitled to dividends, 4. ‘Treasury shares, once disposed of, entitle the purchaser or nansfeee the fight ovate 86, Which of the following. statements is false concerning treasury shares? TE ese cattery . They have no voting right . They may be disposed of for a price lower than the par ‘alue providéd such price is easondble. 4, ‘They are not outstanding shares, i eg rs See ea classified as - a. Cash dividené b. Property dividend (SEE i © Stock dividend 4. Liguidatiig dividend 88. Which of te following will cause the automatic dissolution ofa comoration’? P ‘Continuous inoperation fora period ofa least 5 years , Failure to formally organize and commence the ‘taasaction of iis business oF the construction of iss works within 2 years ffom is incorporation. ©. Failure to adopt by-laws and submit the same to the Scourties and Exchange Commission within 30 days ‘rom the receipt ofthe official notice of the issuance oF its cerifieate of incorporation, 4. Commission by the corporation ofan ultrawvires act. 89. The articles of incorporation of Alco Corporation, a C construction company, classify its shares into voting ‘common stock and non-voting prefered stock, and provide for 11 directors. Is by-lawsion the other hand, give the board of directors the authority to approve transactions not exceeding P2,000,000.09: Any transactions in excess of the said amount liave to be ratified by the stockholdts. In which of the following cases may the preferred stock vote? & Approval of a loan amiounting to P3,000,000.00 from Equitable Bank, , Declaration of stock dividends from the unissued ‘eommion stock, ‘Increase in the number of directors ftom 11 to 15, Purchase of cement worth P2,500,000.00 from Davao Cement Corporation. 90. This isa right to financial statement. (Phil CPA, 90-2) sual REBT atv. oneEXCEL, EROFESSIONAL SERVICES, INC Within ten (10) da Fequest of to him the be AL the rey directors financial ns fom the receipts of & writen Any stockholder, the corporation shall furish ‘most recent financial statements ular stockholer’ mectsg, the bom of shall_present to such stockhokler audited financial ements, © regula stockholders? mepting upon request ofthe Soctholits and. win ten (10) days om such MEsIG the board of directors will submit 10 Ue #8 the atte financial statements, Ifthe paid-up capital arte eoportton ie P30,000.0 oF ‘more, the financial statement may be certified under ath by the teasrean ths wil suc fr he purpose mission tothe stockholders 91. Corporate dissolution may take place by voluntary inaction ‘hich wil result in the cessation o its corporate powers and pee rele porate po the corporation shall be deeimed dissolved. Such voluntary inaction may result from: (Phil CPA, 91-2) & Inaction by the corporation ‘through its failure “to formally organize end commence with the transaction of its business or the construction ofits works within two (2) years from the date of is incorporation. '. Failure of the conporation to submit the anmual reports fequited by the Securities and Exchange Commission for petiod of Five (5) years, © Merger or consolidation with respect to absorbed corporation, 4. Anpwer not given. 92. There is said to be an unressonable accumulation of unrestricted retained earnings when they are in excess oF PS 100% of the paid-up capital ‘of the corporation. In the following cases are the valid defenses which a corporate taxpayer may set up t0 prevent the imposition of a surcharge. choose the exception 4 That in the previous year the corporation has alréady declared dividends z bb. That the retained eamings are iniended for ¢ projeet of expansion already approved by the board of directors © sumo mayanenip ete institution to. which the corporation is indebted tha dividends shall not be declared without its consent. 4. That the unrestricted retained earnings are being held as contingent funds for any unforeseen losses or lailities fe. None of the above. 93, The articles of incorporation of Power Corporation provide * for 15 directors. For the year 2016, anly S meetings of the B foard of directors were convened because ofthe difficulty in powering a quorum, th view thereof, some tansactions of The corporation which required board. epproval did not ieriaize resulting in lost profs. In preparation for the rival meeting of stockholders, the following were & the board of directors as possible solutions for ‘considered by pproval ofthe stckboliers: Pe amending the by-laws reduc rectors. 11, Providing # by-law for the creation of an executive fommittee consisting of § members of the board of Girectors fo act on matters that may be delegated toi by the board! : ° Providing a by-law allowing directors to send 1g the quorum to 6 4h Tepresentatives during the board meeting provided é that the epresenintive is given a speci power of anime ae tv, Amending the articles of incorporation reducing the umber of directors from 15 to 7 effective Expiration ofthe trm of the incumbent directory ofthe, above, ec snd for st "ich 94. + 95, es e.torty 8. Hor sentive oti tori t tterlv he loving stent concerning feted Ojon elmo a gana re ee acquires eget te shares. < ties ood only. forthe mesting for which it itehded Orca 3 It is generally revocable, and the stockholder may tote lenin presen fhe eset. Tae penne ping te epesetv he poet Wott be dy nla and copy wero be submitted to the Securities and Exchange Commission to be effective and ‘enforceable. a. Cand apply Vting tt agpeement Land apoyo voting tus agreement. Se TEAIV aon oer aa [and Ill apply to proxy. e ‘he antes OF incorporation of Alpha Corporation, a construction company, provide for 7 directors. In the ‘monthly meeting of the board of directors held on April 12, 2004, directors A, B, C, D and E were prescht and the following resolutions were approved: 1. A resolution for the purchase of 500 pieces of no blocks from Excellent Concrete Enterprises, 2. proprietorship owned by E. B, C, D and E voted 10 resolution. JL A resolution appointing T as the new treasurer corporation. A, B, C and D voted for the resolution. Based on the foregoing: ‘2. Both resofutions are valid. b. Both resotutions are not valid ‘©, Resolution lis valid; Resolution Ul is not valid. 4, Resolution Lis not valid; Resolution Mis valid. Record of all stocks in the names of stockholders are contained in a. ledger b. stock and transfer books ¢. journal 4. ‘Articles of Incorporation none of the above ‘Other persons who can vote in corporate meetings besides © the proxy: eA DU el einige a. guardian b. executor ©. administrator 4. all ofthe above Which of these is an example ofa public corporation? Development Bank of the Philippines . The National Development Corporation c. The Philippine Ports Authority 4. Nore of a,b, ande e., Allofa,, and e Sis a stockholder in X Corporation who happens to be indebied to € in the amount of P5,000,000 which becaine ‘due and payable on December 15, 1999. S sold his shares of stotk in X Corporation for P10,000,000 in favor of T on August 19,1998 who was not able to record the transaction in the stock and transfer book of X Corporation, Sometime in August 2000, C sued $ in cour where the latter was adjudged liable to the former for P5,000,000 whereupon the shares of S were garnished by C. Who between C and T is better entitled to the shares of S? a. T because he legally bought the shares from Cw: in Aug 9,8, nN Pom C way tek b. T because sale is preferred in the transfer ownershi rather than gamishent eee© Chas the bemer right because T di not register his sale im the comporate stock and transfer Book whereas the garnishment by € ig a matter of corporate recont, & Bomofeandh | yea A contact eqered into ty a director with whe 1D copseston which be a cect & generally consiered as woadable, Which is the element which will make the ‘coomract valid? & That the contract is thir and reasonable under the sireumstance. That bis preseste in the meeting of the boand was not ‘counted ts part of the qvorum, (© That his vote, if at all the voted for his contrat, is not ‘necessary for its approval Allefthe above “The Catholic Church of the Philippines may be regarded a & Comporatorrscie © Corporation by prescrition 4 Bothoft ante © Neseoftheabove YO2. “The rule & that the corporation can only be bound by acts of the board of directors acting as a body and noi individually. Which is the exception? A Wthe rectors are themselves the.only stockhollers of te 1B. Tithe act of an individual director for the corporation is | ratified by the bound of directors, & if the corporation is in extoppei because it misrepresented 10 the third person that a particular 5 8 Erector can bind the compar d. Alfofthe above : 103. This Bs written acknowledgement or an interest of a C sttier inte competion: PCPA. 88-1) a Proxy '. Certificate of stock BL Share of sock 4 Capita! stock 104 ‘The fight to vote at meetings, the right 10 reccive ID Sisiends st te git ta veces copies of financial ‘Statements is known as: (Phil CPA, 90-1) 2 Righofexisience —. Pre-emptive right 1 Durecton right 4 Stockholders’ 105A dividend payable parly in cash and partly in stock, ‘this class of Cividend is s:(Phil CPA, 89-1) ‘Optional dividend > Property dividend ‘e. Liguiting dividend &. Composite dividend 206. A gratuitous issue of Treasury shares will result in: (Phil D BCPA 88-1) a Capital surplus Additional profit 5 Wateredstock 4. Stock dividend 107. The rule is that the corporation can only be bound by A) ats of the board of directors acting as a body and not © ‘ndividually: Which is the exception? Ifthe directors are themselves the only stockholders of the corporation. b. Ifthe act ofan individual director forthe corporation is Iatified by the boerd of directors, If the corporation is in estoppel becawe it misrepresented to the thind person that a. particular srector can bind the company, 4. Allofthe above 108. In which of the following corporate acts is the appraisal OFESHONAL SERVICES. INC. (May 2019) ATTY. ONG. © Sale, lense, exchange, mortgage, pledge or other disposition of afl or substantially all of its corporate stock 4 Tavestment of funds for the accomplishment of the primary purpose ofthe corporation. 109. Which of the following special corporations is required “A ty the Corporation Code to have its number of directors in mltiples of 5, ie, $, 10or 18? A stock educational corporation, . Arnon stoek edueationa! corporation, ©. Accorporation sole 4. A religious society 110." A stock corporat is similar to a non-stock corporation in what respect? wore CG ranstorability of shates or of meribership. =m Method of voting directors or trustees, comin ©. Voting by stockholders of members in person or by proxy 4. Term of directors or trusts. ane 111. Which of the dieters ofa corporation have a renure of A three (3) years? a thembership corporations “er se 4 b. Stock © Educational 4. Religious © mane ofthe above 112, The business ofthis corporation ean be managed by the Ay sockhotd open eleemosynary none of the above all of tie above 113. On dissolution, the liquidation of the business of the 1) corporation may be undertaken by: a Board of directors or tnstees . Assignee or assignees appointed by the board of directors c. Recriver appointed by the courts, 4 Allofthe above, The time or duration forthe winging-up of liquidation is fora petiod of three (3) years except When the fiquidation is'to be made by the board of directors, bo When the winding-up is to be cai assignee or assignees, When the liquidation is ordered to be done by the receiver appointed by the courts, 4. None ofthe above na, out by the NEGOTIABLE INSTRUMENTS. |The following are functions of a negotiable instrament, {). Choose the exception: (Phil CPA, 93-2; 94-2) 8. it increases purchasing power in circulation, b, itincreases credit circulation. ‘& as substitute for money. 4. as legal tendee, 2A check upon which the holder's sigmture must appear (Ces, ane to be aise by him athe time tis issued ana he ‘sevond or counter signature, to be affixed by him before it paid. Otherwise it isrincomplete, is called: (Phil CPX, 91-1, 961) S & Cenled Check |e Tels Cdk Check Manager's Chee 3. ‘Which f the following instruments is Bepotiasicy oe ‘warrant. 6. Letter of credit b. Postal money order Trade acceprance, en Env EE EEE SOOO ODOKey of 3B 18, Whigh is no: correct? The acceptor by accepting -a {negotiable instasent: (PhiLCPA, 97-25 98-1) a, Admits the existence of the payee and his capacity 10 endorse 1b. Admits the existence of the drawer, the genuineness of bis sinature and his capacity to draw the instrument Admits the existence ofthe endorser, the genuinenoss of his signature and his acthorty to draw the instrament 4. Admits that he will pay it according tothe tenor of his acceptance 19. Assuming all the other requtstes of negotiaility are present, G_ which of the following instruments is not payable to bearer? a. "Pay to the order of cash," 'b, "Pay tothe order of Jose Rizal, national hero," © "Pay to Pedro Paderal, bearer." "Pay to Pedra Padernal or beater." 20. A bill of exchange may be treated and considered promissory note: {Da When the drawer and the drawee are the same person. . When the drawee is fictitious ¢. When the instrument is ambiguous d. Allofthe above 21. Which of the following indorsements is incorrect? statements ‘pertaining to DF The indorsement must be ofthe whole instrument. bb, The signature of the indorser without additional words is sufficient. {© Indorsers are liable ir the order in which they indorse d. Ifan instrument is delivered without indorsemen ‘negotiation takes effect at the time of delivery even il the instrament is subsequently indorsed 22. M makes a promissory note payable 10, the order of P. P fh indore ne oe speci tA, Ado then lak “and livers the same to BB specially inorses the ncte v0 ©. C specially indorses the note te D, D indorses the note in Sank ta delivers ito E, specially indorses the noe co H, holder. Whose indorement may 1 strikeout? “tThe special indorsement of Pio A. 'b. The special indorsement of E to H, : ‘The blank indorsement ade by A. {The blank indorsement made by D. Z 23. Mmakes a note payable 10 the order of P in tae amoun: of 10,000.00. P indotsers the note tA cs follows "Pay to A B_jthe passes the 206 Bar Examination” IM mst wait forthe condition 1 be fallled before he can pay A. b. Mimsy pay A even if the condition hes not been fuled but A has to hold the proceeds subject the rights of P. Mi cannot be compelled to pay even ifthe Condition is fulfilled because the conditional ,indorsement renders te instrument non-negotiable. 4. M may pay A even if the, condition has not been fulfilled. The fulfiliment of the condition becomes: immaterial and A becomes the absolute owner of the proceeds ofthe note. 24, One ofthe following can st up the defense of forgery in an ‘instrument payable to order. Who ist? fa. Anindorser, ifthe maker's signature is forged b, The acceptor, ifthe drawer's signature is forged ‘c. A person negotiating by mere delivery if a prior party's signature is forged. The maker, if an indorser’s signature is forged. 25. Which of the following is not a right of a holder in due p ‘course? @. To hold the instrument free from def tit r esas fect of ttle of prior FEL PROFESSIONAL SERVICES. INC. (May 2018) ATTY. ONG. b. 0 holé the insirument ree from personal defenses cvailable to prior partes among themselves To enfare'symel ofthe istunent for te fl mount thereof epans al pares lable thereon 4. Tool the istoment foe tom rel defenses avaiable «ag the prior partes among themselves, “Runs eck omounting to P50 00.00 but whichis blank A 88 to the name of payee. He keeps the check in his drawer hut S, his scerelary, steal it places fer name as payee Of the blanks and negates i104, A 10.8, B to Cand C9 Hy holder A, B, and C have no knowledge of the theft of the hock and its unauthorized completion by S. Based on the foregoing, which of he fllowing statements i incorrect? 1 amy enforee payment ofthe check against Rif His 2 holder in de course ‘ Hay enforce payment ofthe check against S, whether His a holder in dus course o ot Hanay enforee payment of the beck against A, B and (whether His holder in de course or not ‘ 4-H may not enforce payment of the check aginst Ry ‘vistner His ahelder in de course or no. 27, Which of the following may be raised as defense against any 1 holder? 2 Want of consideration. th Wantef delivery of compete asruent. Jered aie ©) Insertion ofa wrong date ©. Nanta eivery ofan nomplets intranet. 28, M makes a promissory note for P2,000 payableto the order FP, P negotiates the note 10 A who withthe consent of P faises the amount to P20,000 and thereaer indoses ito B, BioC, and C 19D whois nota holder in dv course. In this case: (Phil CPA, 91-2; 95-1-M) 2 Dream recover P2,000 ss against M and Aare lable oD for P20,000, G Band a not labletoD &._ Answer nt given 25, M mnkes a note payable to the order ofP. He delivers the note to P with the instruction that P should keep the same tnt M has obtained the proeeds of his foan from the Ban. P. however, distgarded the instruction of M and indorsed tie nototo A.A tOB,B WG, and C0 H, holder. A, B and C hve no knewiedge’ of Ps defective ‘tle. Based on the forepoing, which of the tollowing statements is incarect? a. Hay enforce payment against M if His a holder in dle course. b. -H may not enforce payment against M if H ts not a holder in due course. . H may not enforce payment against A, Band C, ‘whether His a holer in ue course or not. Hay’ enforce payment apainst P, whether His a holder in ve course or not 30. M makes a note payable to P or bearer and delivers the note D toP. Pindorses the note to.A. A keeps the note in his drawer butt is salen hy F who negotiates the same to B by forgins ‘A's signature, B indorss the note to C, C indorses the note ‘oH, holder in due course, Who among ihe following ca Set p the defense of forgery a Makes he P.payee Av ndorser. 4. Forgery isnot aallable as defense to en instrument, IY Party to the 31, A is maker afa promissory note for P100,000 A often oe 1040 mre the note and is found by X who forges the signature of Cs pretending to be C negotiates the note to D, D to, & a and F to.G who is a holder in due course. Under pe circumstances which of these is not an incorrect Sehpeget PO rp en PFET atty. on S|Balog older Inde eoune, © can recover rom maker The signature of © boing forged, i becomes inoperative fat payment cannot be enforced as against him, is not table to F precisely because he was not the one who forged the signature fC, dX is not Table fo any party to the Instcument since his tame dos no! Joes no! appa thereon 32) A iste neonal © romissory note fo the order of B for 10,000 payer 30 days afr dae, Later B indorsed it Yo. Then X sae the rote from C, forged he signature a a nogotiatd it to 1, and Yo by 1 to F. the holder. On Anata ofthe note, which of the following statements sno cevrect and invalid AF cannot collect from © because it was C's sg which was forged : Fran cotlect fom A because A cant pulp fry his defense (en) Bites can collet cither Dor E, because their Signafures are genuine and the note is ep past them 44. Freannot collect from 13 because B isa party prior tothe forgery 34, Ata movie premier, Perfecto Palmares approached Shaton J) Matales the star ofthe movi, and requested an autograph from her. Sharon Morales willingly obliged and signed her fame at the bottom right: portion of a white 8° x 11" stationery which Perfetto Palmares presented wo het. Shorty ailer reaching home, Perfecto Palmares printed above the Signature of Sharon Morales through h following: "I promise to pay Perfecto Palmeres or his order | 150,000.00", Thereafter, Perfecto Palmates notiated the paper to Arturo Alvatez, Arturo Alvartz, io Bemardo Benitez, and Bermardo Benitez to Henry Hilace, holder ‘Alvarez, Benitez, and Hilado knew nothing about how the apparent note care into being (F Soriano) a Ht he fs a holder in due course. Henry Hiado can collect from Sharon Morales, b, Whether he is holder in due course or nos, Henry Viilado cannot collect ftom Sharon Morales, Whether he is a hokler in duc course or not, Henry Hilado cannot collect from Arturo Alvore2. 4, Whether he is a holder in due course of not, Henry Hilado cannot collect from Bernardo Beniter 44, Medardo Medrano makes & note payable to the onder of {P) Pideneo Palomar and Prudeneio Perez fr P20,00020; The payees are not partners and nether one aulborized the other fo actin his behalf, Based on the foregoing. which of the following i valid indorsement?(F Soriano) ‘i "Pay to Antonio Arevalo, P12,000.00, and to Alberto Alvarez, PS:000.00 (Sud) Pidencio Palomar (See) Prudencio Perez." bb. "Pay to Antonio Arevalo, P14.000.00, (Sed) Pidencio Paloma (Sad) Pragencio Perez! te: Medardo Medrano has paid total of P6.000.00 Note: Mala eee er ade i indosemen “eign, Pay to Antonio Arevalo, 14,000.00. Spi Piero Palomar (Sp) Prado Perea? ‘Medan Medrano has not pad any amount the (May 2019) ATTY. ONG 4. "Pay to Antonio Arevalo #20:000.00. : (Sud.) Pidenclo Palomar" shoal» 6) | 35, Antoni ses bill othe order of Juan, a Juan inderies | ‘A i140 Pedro. Pedro indorses the bill to Mario. Mario to Tcolfo ad Redolfo indoses the Bil to Jose the holder | Which of the following is not tru, if Jose decides to strike | ‘out any indorsement not nocessary to his title? (Phil CPA, | 99:2; 96+1-M) 1 if Jose cancels the indorsement of Pedro, Pedro is relieved from liaifity b. If Jose cancels the indorsement of Juan; Juan, Pedro, Mari, and Rodolfo are relieved from lability, If Joss cancels the indorsement of Pedro; Pedro, Mario, 1nd Rodolfo are relieved from lability. i. If Jose gancels the indorsement of Mario; Mario and Rodolfo are relieved from liability 36. M makes a promissory note payeble to the order of P for ©) 10,000.00, P indorses the: note to A, and A to B. Thereafter, B indorsed the amount ofthe note in full t0 H to sccure his (B's) debt of P8,000.00 10 H, Based on the foregoing, which of the following statements is incorrect? tIfM. has no defenses against H,H may collect 10,000.00 fromM. 2 b. IfM has personal defenses against H, H may collect 8,000.00 from M, co. I'M has real defenses against H, H may collect nothing from M. 4. cannot collect saying from M whether M has real or personal defenses. 11. The fllewing are warranties of a qualified endorser, excep ‘Da. That the instrument is genuine and in all respects what it purports to be : b. Thar he has a good tile 1 it That all prior parties and eapacity to contract 4, None of the above 38, M makes a promissory note payable 10 the onder of P for PHIPS,000.00. After dstvery to P, P changed the amount to 1US5)000 00, Thereafter, P indorsed the note to A, A to B, Bio C, Co D, and D to Hl The parties subsequent to P wete not aware of the alteration made by P. Based on the foregoing facts, which of the following statements is incomect? a. Han hold M liable for USS5,000.00 if His a holder in due course. Han hold table for P14P5,000.00 if His a holder in due course. ¢. Fl cannot hold M liable for any amount if H is not a holder in due course, 4, Hean hold A, B, C and D liable for USSS,000.00 even if His nota holder in due course. 39, A makes a note payable to B or order. The following ae the C_idorsers ofthe note in the order of ther indorsement: , C, 1D, E, F (bolder), and G (subsequent holder), ‘The note dishonored in the hands of F, who notifies B, C, D, and E. Which isnot correct? (Phil CPA, 96-2-M; 97-2) 4. ‘The notice given by F to B operates to ‘i Thence pia y F to B operas Wo te Benet of, b.. The notice to C inures tothe benefit of D, E and G. ©The notice 0 C inures tothe benefit of B, 40, Wile of te ming ntuesy dos nt Oa . Which of the following instances does not a ‘A, mestable insur? (Phil CPA, 9-2, 96-1) & Pr aniiema orn) ses fore mati be of the instrument by the holder. © primarily able to Holder or his RFBT Atty, Ong.EXCEL PROFESSIONAL SERVICES, INC. (May 2019) ATTY. ONG b. B may demand 4 price therefor ‘e.S'may require payment of the whole shipment since § ‘was not aware of the damage caused on the machines at the time of sale, 4 $ has no option to rescind the whole ‘contract or payment ofthe remaining 20 units. 0. In one of the following eases, delivery of the goods to a carrier for the purpose of transmission fo the buyer transfers ‘ownership to the latiet. Which ons is it? ‘When by the terms of the bill of lading, the goods are (0 be delivered tothe seller or his agent, bb. When by the terms of the bill of lading, the goods are to be delivered to the onder of the buyer or his agent but the seller retains the bill of lading, © When the seller draws a bill of exchange on the buyer for the price of the goods and transmits such bill of exchange and the bill of lading to the buyer to secure acceptance or payment of the bill ofiexshange and the buyer dishonors the bill of exchange. 4. When the owner does not reserve the, right of possession or ownership of the thing sold upon delivery to the cartier. é wvery of the remaining 20 pay the 16. 8, the proprietor ofa rent-a-car enterprise, std his businés: mil his ‘eet of 10 cars to B for a Kemp nS » Bs, iysi leliver the rents ,000,000.00. $ phy delivered al other papers for the operation of the business Vehicles to B at the latter's office except for one car Which the partios agreed shall be leased by $ for one month while hhe was winding up his affairs in the Philippines as he was then leaving for abroad. In the meantime, the contract of sale and the contract of ease, though already signed by the parties, have not been acknowledged before notary public, and hence, were still private instruments a. The ovmership of the car leased by S remained with S b. The ovinership of the car leased by $ has transferred to B although there was no physical delivery thereof to B. ©. The execution of the private instrument for the business and the cars likevise transferee ownership to B of the cat leased by S. 4. Both the contract of sale and the contract of lease must be acknowledged before a notary public by the parties before the ownership ofthe car leased transferred to B. 17, 8, a malicious and fraudulent person, sold his house and lot, - successively to X, ¥ and Z, all of whom acted in good faith 11, Baldo bought a residential house and lot from Tierra Madre Cand for value. X contented himself with bis contract and did Realty for P250,000.00 giving a down payment of mot register the sale nor possess the house and lot; Y 10,0000) and promising to pay tho balance of possessed the same but only intermittently whieh enabled Z P240,000.00 in 20 years in monthly installments of to buy the house and lot in good faith and registered the sale P1,000.00, After paying 72 installments Baldo detautied in with the Register of Deeds. Who among X, Y and Z will the payment of the 73rd installment and subsequent ones. hhave a better right to the house and lot? Despite the grace period he had earned he was not able to ‘a. Xas the first buyer in good faith and for value who, has make any further payments. Accordingly, Tierra Madre oldest title, Realty cancelled the sale. How much cash surrender value '. ¥ because he took possecsion of the house and lot {is Baldomero entitled to receive? (F Soriano) (0-842 <3 although intermittently a. P45,100.00 ©. P36,000.00 EBS pe Zas the buyer who first recorded his tansaction with b, P39,600. RAL DDO0 1 ca ‘the Register of Deeds in good faith. 12, Goods are still in transit: C) ® ifthe buyer or his agent obtains delivery of the goods before their arival atthe appointed destination. . when the carrier acknowledges possession of the goods as bailee for the buyer after the arrival of the goods at the place of destination. : c. if the carrier or other baile wrongfully refuses to deliver the goods to the buyer or his agent. 4. ifthe goods are rojocted by the buyer, and the cartier or other bailee continues in possession of them, even ifthe soller has refused to received them back. 13, This refers to the implied warranty on the part of the saller that he bas the right to sell the thing at the time when. cwmershipis fo pass, and thatthe buyer from that time shal hhave and enjoy legal and peaceful possession ofthe thing. a, Warranty against hidden defects. b, Warranty against eviction. c. Warranty of ownership. d, Warranty of possession. 14, This refers to an encumbrance imposed upon an immovable for benefit of another immovable belonging to a different owner. a. Easement orservitude Pledge 4, Chattel mortgage b, Real estate mortgage 15, The justified refusal of the buyer to accept the goods 0 the following effects, except: Fespayer has no dio seu the gods: stipulated. tunless otherwise d, X, Y and Z should share the property in equal proportion after S returns their portion of the price paid. 18, S sold to B a residential Jot said to be containing an area of 1,000 sq. meters at 10,000 per sq. meter, In this connection, which of these isa correct statement? 1 If the lot should contain 1,500 sq. meters, B can reject the excess of 500 sq. meters, but if he accepts, B should pay for tte excess at the contrect rate of P10,000 per sq. mater 4 ’. Ifthe lot should contain 950 sq, meters only, B ean only ask for a proportionate reduction of the price but not Ifthe lot should contain 900 sq, meters, B can choose between proportionate reduction of the price ot rescission of te sale, 4. Allof the above, 19, Seller and Buyer orally entered into a contract whereby £B Selle sold his one-yeat predation of eggs in his poultry farm to Buycr for P150,000 which amount immediately gave in cash to Seller. The contract between Seller and Buyer is: a. Void because the object was not existing at the time of execution of the contract. bb. Valid because fisture things’ may be the object of contracts c. Rescissible because buyer will likely suffer damage if the eggs do not come into existence, 4d, Unenforceable because the contract was not in writing, 20. RR, the representative of AA, an absenter, sold the com 1D) with a value of P30,000.00 and the palay with a value of 50,000 harvested from AA’s agricultural farm for a total price of PS0,000. AA, whose domicile was subsequently known, was informed of the sale shade by RR. Based on thePr OFESSIONAL SERVICES. INC. facts, which of the following statements is incorrect? a AA may seek payment of an additions) P30,000 to recover the damages sutfered b, AA may just seek rescission of the sale of the com to recover damages he suffered, ©. AA may seek rescission of the sale of part of the rice to the extent ofthe damages he sustsined 4. AA may seek the esession of the nial sale recover for the damages he sutered 21. The purpose of this action is to ask for a proportionate AL. reduction ofthe price Quant minoris «€.Replevin b, Redhibitoryaction __d_ Aecion vindcatora 22, In which ofthese eases is there no righ of legal redemption? &. Where a co-owner of an undivided immovable sell his D interes: to thin person, , Where the owner of rural property one hectare or less sels his property to third person who ovns oer rural Jand or lands © Wht the ewer of urban land which is so smal and co Situated that it cannot be used for a practical purpose sells the same toa third peso 4. Whete the co-owner of an undivided immovable Broperty donates his undivided interest oa third person, 23. If redemption is made, which of ihe feliowing will not be 1D) Paid by the seller tothe buyer: (Pil CPA, 92-2; 96:1. 98-1- ™) Brice made by the buyer. ', Expenses inthe exevution of the sales contact paid by the Bayer. © All necessary expenses on the thing sold and to be redeemed. Interest on the price paid by the buyer. CONTRACT OF PLEDGE, MORTGAGE AND ANTICHRESIS 1, Ben pledged hie watch 10 VY. Domingo Agencia for C P5000, On due dite, Ben filed to redeem his watch. The [Pawnshop sold the watch st a public auction to the highest bidder at P4,000, (Phil CPA, 89-2-M; 90-2-M; 98-1; 98-1- ™ The pawnshop can recover the deficieney of P1,000 from Ben bb. The pewnshop cannot recover the deficiency of PI,000 «unless there isa stipulation & “The pawnshop cannot rezover the deficiency of P1,000 even if there isa stipulation, The Pawnshop can recover the deficiency of PI,000 ‘even without stipulation 2 When is appropriation by the creditor of the thing given as fh fecury allowed in pledge, real morgage and chal mortgage? When the thing given as security in real mortgage is ‘not sold attwo public auctions. >. Wher the thing given as security i pledge is not sold | attwo public auctions, & When the thing given as security in chattel rhorteage is ‘ot sold at one public auction, 4, No appropnation is allowed in tither pledge, Teal mortgage or chattel mortgage. ' 3. This is a stipulation in pledge or mortgage providing thatthe i evmership of the thing given as security will pass to the pledge or mortgagee upon default of the debtor. ‘8. Constitutum possessoriurn nici . Pactuon commissoriuny ©. Legal subrogation Page 29 of 38 4 5. A pledged his ring, wristwatch, and necklace, Before the debt 6 a & 0 d. Redemption te P appoints A his agent for the purpose of borrowing money and to this end mortgaged (chattel) his caz. A in excess of of his excess fttoriy sells the eat oT ad the ater knows Sahar The principal Pee ot ratify the sale =the Sts of the contact wT oval €, Uncnferseable b. Voidable d. Void B onowed 730,000.00 from C2 To secure the debt, D could be paid, C died leaving X, ¥ and Z as heirs. By serement among the his who inherited the ce, the Hing ‘would secure the share of X of the eredit, the wristwatch the share of Y, a necklace the share of Z. Cater, D pays X P10,000.00" 4D can demand the extinguishment of the pledge of the sing. ; X may release the pledge ofthe ring. The ledge ofthe Fng wil remain nil the shares of Y and Z are paid by D. {Dison demand the extinguishment ofthe pledge ofthe ring, wristwatch and necklace because there has been partial payment Cesar pledged his Toyota car to Dan for P100,000. Cesar was unable to pay the obligation two (2) months after the obligation became due and demandable, Wherefore, Dan sold the ear at public auction for P80,000. Can Dan recover the deficiency of P20,000 from Cesar? 1 answer: No, he cannot recover the deficiency even is there is @ stipulation the he ean 2% answer: Yes, he can recover the deficiency even Without stipulation, (Phil CPA, 97-2; 98-1-M) a, Ist answer correct, 2nd answer wrong b. Both answers are wrong, ©, Istanswer wrong, 2nd answer correct 4. Both answers are corect ‘ The debloripledger has the following rights, except: 16 ask for the retum of the thing pledged afler he has Pld the debt, is interests, and with expenses in a roper case , to continue to be the oviner of phe thing pledged uniess itis expropriated, © 10 require the deposit ofthe thing with a third person if itis in danger of being impsired or lost through the negligence or willful act ofthe pledgee. to alienate the thing pledged without the consent of the pledgee, D borrowed 100,000.00 from C. To secure the debt, D {mortgaged his land and building in favor of C. The mortgage a is registered with the Register of Deeds. Sometime later, D sold the land to X who was not aware ofthe mortgage of the land and building, Based on the above information, Which of the following statements is false? 4% X must respect the mortgage although he was not a party thereo, . _ ® X'was not bound by the mortgage because he was not aware of it & TEC forecloses the mortgage and the proceeds of the &. If C forecloses the mortgage and the proceeds of the foreclosure sale exceed the amount of debt, Dig entitled to the excess, RFBTEXCEL PROFESSIONAL SERVICES, IN y 2019) ATTYONG 0 for 360,000.00 from C; The price 1H, The pledge of the computer is extinguished has not yet accepted the renunciation of the pledge. Mh The pledge nt exis ws Cre he 6D. i TV. The pledge is extinguished even if C has not returned we ting oC. Based on the foregoing, which is false among the four statements? i 8 Vand tt «Land tf b, Mand iv TL and 1, 10. A, B and C obtained a loan from X in the amount of ¢ BoM To ena the det A pldard Hs rsa B, his necklace: and C, his diamond ring. A pays his share of toe debt amounting to P20,000.00. L._ ‘The obligation of A, B and C is solidary. Ti, The obligation of A, B and Cis joint. i. A may demand the retum ofthe wristwatch ater ‘payment of his share of the debt, a. Vand IM are true, Land Il are false bb. Mand flare rue, 4. Mand it are false 11, D pledged his 100 shares of stock of San Miguel Corporation to C to secure his debt of PS,000.00. On due C date D was not able to pay the debt, so C caused the sale of the shares to sel at auction. The shares of stock were sold at 4,500.00. ‘a. To extinguish the obligation, C_may recover the éeficieney oF P500,00 from D if there is «stipulation to ‘that effect. b. To extinguish the obligation, C_may recover the deficiency even if there is no stipulation to that effect. ¢. The obligation is extinguished even ifthereis a deficiency of P500.00. Accordingly, C ean no longer recover the deficiency: ~ d._ The obligation is extinguished only if the proceeds of ‘sale amount to P5.000,00 ot more. 12, This refers tothe right of a person to retain a thing until he (receives payment of his claim inthe cass provided by aw such as one who has executed work on a movable. ‘a. Conventional pledge «, Legal pledge b, Voluntary pledge 4 Chattel Mortgage. 13. One of the following may not be the object of a real 0 mH a Land, buildings, roads and construction of all kinds adhered to the soil b, Fertilizer actually used on «piece of land ¢. Animal houses, pigeon houses or other broeding places fntended by the owner to be permanently atached to the land, including the animals therein. 4. Growing fruits that have been gathered from trees planted oniand, 14, It is the right mortgagor to redeem the property that was (&) mortgage frit was 301 1 Equity of redemption ¢. Right of subrogation b. Right ofredemption. — d. Right of pre-emption. 15. Ina contract of pledge, the pledgee/creditor may do the following, except to 'a.__use the thing pledged for purposes of preservation. fs retain the thing pledged until the principal obligation is satisfied. ©. ask fora substimute if he was deceived on the substance ‘or quality ofthe thing pledged. d. sell the thing pledged without notice {0 following cases: . /C P10,000.00, To secure the debt, D pledged defaults, ‘The cell phone is sold for the public auction, payable in 12 ly of F30,000.00, Is secured By tate "Atter paying 2 installments, rt C forecloses id the car is sold at the public instalments ‘mortgage on the car, dlofnults in the payment of 3 installments. the chattel mortgage anc ‘ayotion for 280,000.00. The deficiency is recoverable in: 4, Both and 6 Looly ¢. Moni ¥ ig No deficiency is recoverable in both I and. 17. The creation of & lien on the property upon which it is ( itiposed, whoever may be tho possossbr of the propery, 10 ‘the fulniiment of the obligation for whose security it was constituted refers to the character bel " c. an inseparable contract a amaccessory contrac 4 eal property in itso an indivisible contract 18, One of the following 18 not a characteristic of pledge and ©), mortgage: Phil CPA, 94-1) a. Acbessory «, Gratuitous b, Consenstal dd, Onerous iv, Pledge and morgage are accessory cont (PRICPA,ISN) Oe meant to secure the fulfillment of « principal obligation, istic of a real mortgage tracts because they: st if to principal obligation is void. i exist by themselves. not secure fulfilment of rescisible obligation. . ‘of the following statements regarding, cantract of pledge isnt correct? Phil CPA, 96-2) ’A pledge cannot be constituted unless the thing pledged fhe placed in the possession ofthe creditor. b, Pledge is a real contract because it is perfocied by delivery ofthe thing pledged ©. Pledge is. an accessory cont principal obligation to exist 4. A pledge cannot be constituted to secure the performance of « voidable or unenforceable or even a natural obligation. 21, The following are essential requisites common to the contract of pledge and mortgage, except one: (Phil CPA, 97- 2 ‘4. That they aro constituted to secure the fulfillment of a incipal obligation. ‘That the pledgor or mortgagor isthe absolute owner of the thing pledged ot mortgaged. ©. That the contract is registered with the Register of Deeds. 4, That the person constituting the contract” has fee disposal of his property or that he is authorized legally for the purpose. SPECIAL TOPIC PHILIPPINE COOPERATIVE CODE OF 2008 tract because it needs a e 1. Any provision or matter stated in the articles of cooperation ‘by Jaws may be amended by jd ‘a. ‘Two-thirds (2/3) vote of all the members with voting ri oy (23) vote of all the members with voting or ‘non-voting “Majority of the Board ‘of Director and two third (2/3) of all miembers with voting Fights aocal RFBT Atty. Ongen ROFESSIONAL Si Majority of the Board of Director and three forth (3/8) of all mernbers with voting rights 2. Nomerger ot consolidation shall be valid unless a. epproved by three-fourths (3/4) vate of all the members with voting rights, present and constituting quorum of each of, the- constituent. gooperatives separate general assembly meetings, . approved by a two third (23) vote of all the members with voting tights, present and constiuting each of the constitlent coon assembly meetings. © approved ty. a Majority vote of all the members with voting rights, present and constituting a quorum of cach of; the ‘constituent cooperatives. at separste general assembly meetings . 4. - approved by a to third (2/3) vote of all the members with “voting and non-voting:-tights, present sed constituting quorum of each of the constituent » , %G,Sooperaves at separate general assembly meetings Cooperatives may fall under any of the except? : Credit Cooperative b. Consumers Cooperative ©. Producers Cooperative &._ Primary Cooperative -cargcy 4. Which ofthe following is not comest? CC & A regular member is one who has complied with al anambership requirements and entitled to all the rights and privileges of membership. b. Anassociate member is one who has no right to vote or be:voted upon and shall be entitled only to such rights and privileges as the bylaws may provide, An associate who meets the minimum requirements of regular membership,. continues to patronize the cooperative for G:C) year, and signer hisher iniention 40 remain a member shall be considered. 4 regular member, |. A cooperative organized by minors shall be considered ‘laboratory cooperative and must be affliated with a registered cooperative, 5. Under Philippine Cooperative Code of 2008 (R.A. 9520), which of the following,,comply ..with, the, minimum requirement ofthe law to form a cooperative? quorum of eratives at separate gerral following types, ‘Authorized. share | Subscribed. Pu ia Capital Capital capital > [a P100,000. 25,000, 10,000 ’b, P50,000 'P25,000. 20,000, e. P50,000 P30,000 7,500, ‘@ P5000 5,000, 5,000, 6, Which ofthe following may be considered valid grounds for B terminatior Srnec ‘ofa primary cooperative? a. death of a member in a secondary cooperative") b. Insanity of amember . <., insolveney of a member 4. Dissolution of a member Functions of a Federation of Cooperatives A federation of cooperatives shall nderiake the flowing papas: nabs aia (a) To carry’ Ot any coopetative enterprise ‘authorized under Article 6 that coniplements augments, or supplements but dmplete wilh, aor supplant the business sconomic activities of its members; _ (©) To carry on, encourage, and assist educational and advisory’ ron a ame ae ae ja y (e) To render services designed to encourage simplicity, » efficiency, andeconc See CER Page 31 of 38 ‘www.prtc.com,.ph ee ATTY. member cooperatives and to facilitate the impleme their bookkeeping, accounting, and other systems. procedures; (©) To print, publish, and circulate any newspaper or other Publication in the interest of its member cooperatives and coterprises To coordinate and facilitate the activities of its member cooperatives; To enter into joint ventures with national or intemational cooperatives of other countries in the manufacture and sale ‘of products and/or services in the Philippines and abroad and To perform such other functions as-may,be necessary 10 attain its objectives (May 2019) Cooperative Union red couperatives and federations atthe appropriate levels ‘may organize oF join cooperative unions to represent the interest and welfare of all types of cooperatives at.the provincial, city, regional, and national levels. Cooperative unions may have the following purposes (@) To represent its member organizations; (b) To acquire, analyze, and disseminate, economic, statistical and other information relating to its members and. to all {ypes of cooperatives within ils area of operation; (©) To sponsor studies in the economic, legal, financial, social and ther phases of cooperation, and publish the results thereof; &) To. promote the knowledge of cooperative principles and practices; (©) To develop the cooperative movement in their respective Jurisdictions; (® To advise the appropriate authorities on all_ questions relating 10 cooperatives. (g) To mise funds through membership fees, dues. and contributions, donations, and subsidies from local and foreign sources whether private or goversment and ‘To.do and perform such other non-business activities as ray be pecessry to attain the foregoing objective, 7. This is the highest policy-making body of the cooperative and shall exercise such posers a8 are slated inthis Code, ia the articles of cooperation and in the bylaws of the cooperative? 1. The gonoral assembly The Board of Director ©.» The Cooperative Development Autharity & The Chairman The quonim ofthe general assembly shall consist of at least ‘4. Majority ofall members entitled to vote s{-tetie Conp ’b,. Majority ofall members +e. twenty-five, per centum (25%) of all the members entitled io vole 4, _tweniyefive per centum (25%) of al the members ‘Any vaeency in the board of dtestors ofa cooperative may te lle by the ye ofa east majority of the remaining directors, if still consttiting a quorum, except? a. Removal of director b,,, Death of director Go Expiration of term 4. Resignation of director A director who, by virtue of his office, acquires for himsel¢ an opportunity which should belong to the cooperative shall be liable for. damages and must aocolint for double the profits that otherwise would have accrued tothe cooperative > by refunding the same, unless his act has been a oc eteenaoteemaene ee Lik OMe RFRT Ate OneXCEL PROFESSIONAL SERVICE: a approved By a three-fourhs (@/4) vote of all the members with voting rights, present and constituting a -auorum, 1B, approved by a two-thitd (2/3) vote of all the members {With voting rights, present and constituting a quorum ‘e,_fafified by a thtee-fourths (3/4) vote of all the members ‘with Woting rights, present arid constituting a quorum ‘4. ratified by a two third (2/9) vote of all the members with voting rights, present and consttuticg a quorum: {1 The’ complaints fof the removal of any elected officer of cooperative may place the officer concerned under preventive’ suspension pending the resolution of the investigation upon vote of? a. Magen NE baled of dirctors Majority ofthe general assembly ©. Two third (23yorthe boatt of directors 4, Three forth (3/4) of the general assembly 12, Which ofthe following is correct? 8, Directors ean attend bur cannot vote by proxy at board meetings. z 4, Direetors cannot atend hut may vote by proxy at board . Duty of loyalty : Duty of dligenee (May 2019) _ ATTY ONG. itt 19. The liability of othe directors, officers. and com : ee eeho. are wilfilly and: knowingly vote for 6 ‘assent to patently unlawful acts ‘of the opoperative is 7% a Joint and severally é Joint and subsidiary ¢. Direct and subs! oar ‘4, Pro ata and subsic 20, When a director, officer or committee member attempts 13 (C. acquire or acquires, in violation of his duty, any interest oF * Gauity adverse fo the eoopertive in respect to any males ‘hich has been seposed in him in confidence, he -shally a8 3 Trustee for the cooperative, be-liable for damages and shall be accountable 2 for 100% of the profits which otherwise would accrued tothe cooperalive for 15096 of the profits which otherwise would fave accrued to the cooperative os c, fot double the profits which otherwise would have accrued tothe cooperative. 4. for triple the proits which otherwise accrued tothe ccoperative 21, The dtectors af « cooperative are entitled to compensation 2: Fined inthe article of cooperation Fixed in tho by laws €. Approved by majority of the Board of director 4. Approved by two third.(23) vote ofall: members ‘oling rights, present and constituting a quorum. 22, Ditectrs of a cooperative ae not entitled for per diem if a. Not slated inthe article of couperation -_ b._ Notstatedin the by laws €.. The cooperative reported a minimal profit. © = & Ute divigend rate is less than theofficial inflation rate for the same year 23. Any compensation other than per dims may be granted to A ductors by a 4. majority vote of the members, with voting rights at # {eghlhr or special goneal assembly meeting specifically called foe the purpose 1. majority vote of the members with voting rights at a regular or spovial general assembly meeting generally called forthe puqpose 5 c- Taree forth (16 ofthe mambérs with voting ight Atm reglar or special general assembly meeting specifically Called forthe purpose 4. Three forth (3/4) of the members with voting rights ata regulator special general assembly meeting generally > called forthe purpose ‘ 24.-linkess already fixed im. the bylaws, compensation of ‘A camployse ofthe coopertive i deternined by? ‘8 Boaé of dicetors b.. General assembly Audit Committe ag ess ate sre 5. contract entered into by the cooperative with one (1) ct By more ofits directors is ” ae 2. Rescissible b. Voidable , © Unenforceable Voie 28 gts, GD. Bs Guilt andst ane: directors of xvz Consumer Cooperative whose articles of cooperatice i peratic ove fr 9 decors. In the mesting of March 2015 ctors Ay B. C.D and E were. present to approve Sonat forthe purchase of office supplcs fom E whe ‘nthe'said product. The comtract was delibereted Said directors in. the meeting poled ing took pl B,C andD who found the contach oe aad ees ~—d would have Rear att aneINC, PROFESSIONAL SERVICE! 33, fe he circumstances, voted for its approval. The contract between the cooperative and Eis: ; Valid and enforceable, ‘Voidable atthe option of the cooperative Unenforceable against the cooperative Void hecmise a cooperative must not enter into a contract with any of its directors since a director occupies « position of tst 27. A contract entered into by the cooperative with one (1) or A more of fis directors, officers, and committee members is ‘Yoidable, at the option of the cooperative. However, such ‘comiract may be ratified by & ‘8 three-fourths (3/4) vote of all the members with voting rights, present and constituting a quorum _b.-three-fourths (3/4) Vote of all the members with voting, Fights * ‘¢. Two third (2/3) vote of all the members with voting rights, present and constituting » quorum 4. Two third (2/3) vote of all the members with voting pose 44. #w rights 28. Disloyalty of airector may be ratified by a A, a Threesfourths (3/4) vote of all the members with voting Fights, ‘and constituting a quorum 3. Three-fourths (3/4) vote of all the members with voting sighs © Two third 2/9) vote of all the. members with voting rights, present and constituting a quorum 4. ‘Two thi @3) vote of all the members with voting rights 29. A director who, by virtue of his office, acquires for himself “#2 opperusity Which shoul belong to the cooperative shal be liable for damages and must account for double the profits thit otherwise would have accrued tothe cooperative by refunding the same ‘bible for damages and must account for triple the profits thet otherwise would have accrued to the cooperative by refunding the same Not lable for damages but be must account for double the profits that otherwise would have accrucd to the cooperative by refunding tbe same 4 Notable for damages but he must cecount for tripe the profits that otherwise would have accrued to the ‘cooperative by refunding the same, 30.'A director who makes use of confidential information that (Mill advensly ae he opeaion and ial of the cooperative shall be 4. ‘Liable to compensate the cooperative for the direct losses sulfered by the cooperative as a result of the illegal use of information, ‘Accountable to the cooperative for any direct benefit or advantage reccived or yet to be received by him or his. associate, asa result ofthe transaction © Both and b 4. Answer not given 31. All complaints for the removal of any clected officer shall ‘Ap be filed with the ‘a. Board of directors Corer on ae Bf temo yl) b. General assembly ©. Grievance cominittee 4. Mediation end conciliation committee 32. What js the evidence- required in order for the board of directors ofthe cooperative to present its recommendation 1™ foc removal the general assembly? a. Prima facie evidenor of guilt Proof beyond reasonable doubt Probable cause ‘Clear and convineing evidence 39, Page 33 of 38 {May 2019) _ ATTY. ONG What is the voting requireinent to place the officer concemed under preventive suspension pending. the resolution ofthe investigation for removal? a. Mejorty ofthe board of directors b. Majority ofall member with voting right ©. Two third (23) vote of all the members with voting rights, present and constituting a quorum ‘Two third (23) vote ofthe board of director. lective officer of the cooperative may be removed by three fourths (3/4) votes of the regular members present and constituting a quorum, in a°regular or special ‘general assembly meeting called forthe purpose. thee fourths (3/4) votes of the member of the board of director present and constituting a quorum, in a regular cor special general assembly meeting called for the purpose Majority votes of the regular members. present and constituting a quorum, in a regular ot special general assembly meeting called forthe purpose Majority votes of the member of the board of director present and constituting a quorum, in a regular or Special general asserably meeting called for the purpose Every director, officer, and employee handling funds, securities or property on bebalf of any cooperative shall be covered by a surety bond to be issued for a duly registered insurance or bonding company for the faithful performance of thoir respective duties nd obligations, Who shall determine the adequacy of such bonds? ‘ Cooperative development authority 1B. Board of director ©. General assembly Surety company ‘The voting requirement to dissolve a cooperative where no creditors ae affected may be affected by a resolution ofthe majority vote of the board of directors and approved by at least two thitd (34) of all the members with voting, rights majority vote of the board of directors and approved ty’ a east three-fourths (3/4) of all the members with voting rights, present and constituting n quorum. majority vote of the board of directors and approved by at least two third 23) of all the members with voting rights, present anx! constituting a quorum! 4 An majority vote of the board of directors and approved by majority of all the members with voting rights, present and constituting a quorum. ‘The Authority may suspend or revoke, afer due note and hearing, the cerifcate of registration of a cooperative on any of tae following grounds, except a. Insolvency (spreerate Gut) ». Having obtained its registration by fraud 2 clot pemeaenes 1 4 Willflfiture to operate ona cooperative basis. ‘A cooperative may be, dissolved by order of @ competent ‘court after due heating on the grounds oF? a. Violation of any Jaw, regulation or proyisions of i bylaws. Having obiained its registration by freud ee Willful failure to operate ona cooperative bass; and f°"! aoe Failure to meet the required minimum number -of ‘members in the cooperative ‘The following are the instances that would warrant the C Authority to delete its name from the roster of registered cooperatives and shall be deemed dissolved Failure to commenced business and its operation within two (2) years afler the issuance’ of it cate of te 0) ya is its certificate o> | Atty. Ong RFBT| b, Failure io carrie fearried on its business for two (2) consecutive 4) a. A years & Bath and Answer not given 40. Every coo, " ren epee whose chars exes by is ova ee tere eee 2 tomtom’ by volta Sullsewetieles conimetoout or a. Two) yeas afle the time it is dissolv One penta te ime his cisolved 2 ‘Three (3) years after the time itis dissolved 1 Sei REG) yews the tne is assed The maximim share capital that a member of primary cooperative may own o= hold ina cooperative is a. Five par contum (52%) b. Ten per centum (10%) © Twenty per centum (20%) 4. Thitty per centurn (30%) 42. Which of the following is a correo statement? Subsidies, donations, legacies, grants, aids and such other assistance from any local or foreign institution ‘whether public or private are not part of capital of cooperative. ‘The capital coming {fom such subsides, donations, legacies, grants, aids. and other assistance sball be divided into, individual share capital holdings at any time. ‘The capital eoing from such subsides, donations, legacies, grants, aids and other assistance shall form part pf the donated capital or fund of the cooperative. Upon dissolution, the donated capital wil be distributed among the members. 43. A is a member of XYZ Credit Cooperative holding, 5% 1) mrs fora peso of 8 months. After a week, A decide 10 ‘eansfer his interest to B who is also a member of XYZ. Credit cooperative holding 4% interest In ths case ‘The is valid because all rights as a rule are transmissible right. The assignment Is valid provided the same is approved by the board of director. The assignment is not valid because the law requires that the trensferee must be a stranger ‘The assignment is not valid because only for eight montis. (nis bs te) 444, The following are the requisites in order forthe member 1 {tems Rs shres otis in he ‘cooperative or any Part thereot, except: ‘a. He has held such share capi for at least one (1) year. to the cooperative or to a ‘The assignment 18, made re ber of the cooperative of to a person who Zalls shin tbe field of the membership ofthe cooperalive: ‘The board of directors has approved such assignment. 4. The general assembly hs approved such, assignment (®¢0) 445, The registation of an clecric coopeallve with the Cooperative Development Authority sal submitted for CO pprovil (0 the, members through referendum. The peetired number of wotes for registration with the Authority 4, a ‘A hold his interest ital contribution or interest b, c. mnt (10%) of all members in 008 standing ‘ofall members in good standing (20%) ‘of all members in ‘good standing standing b, Se EXCEL PROFES: —— SIONAL SERVICES, INC, (may 2019), ATTY. ONG. (A toa! emp in cxcesd of Five hundret feson PhP $00,000.00) within one 1) banking re Mount at least Five hundred thousand ‘ {PnP 500,000.00) within one (1) banking dey ¥ Tee cages of 0, RUMEN, PRODI Fer (@hpi000;000,00) ar aa equivalent ermount in SAE Ce MiGoed on the Brevaling exchange rate within five (5) consecutive banking days. in. excess of Four million (Php,000,000,00) or an equivalent umeney based on the prevailing exchange five (6) eonsecutive banking days Under the AnicMoney Loundering, Law, 8. coved vada remured to maintain a sfstem of verifying the ae dentty of their clients as wel a persons Purportng f0 act on bohaif of: (2011 Bar Exam) those doing business with such clients. +, known principals the covered institution. such cients «nine Anti Money Laundering Act, a depesitor's bank account may be fozen. (2013 Bar Exam) srry the bank when the account is the subject of, & suspicious or covered transaction report By the Anti-Money Laundering Couneil (AMLC) wie De necount belongs to a person already convicted of ‘money laundering c. By the Regional Trial Court, upon ex parte motion By « the AML, in a criminal prosecution for_ money Iaundering pending before it By the Court of Appeals motu proprio in an appeal fom. TP udgiment of conviesion ofa crimnal charge for money laundering. ce. Tinone ofthe above The Anti-Money Launde prevent money laundering in the Philippine Financial Philippine _ pesos ‘amount in Foreign rate wit D fering Law is a law that seeks 10 setivities by providing for more ‘System, hence the fransparens following institutions ae covered by the aw, except: 2013 Bar Exam) ‘bank and any financial institutions. ', Pawnshops casino operators d_Allofthe above, ovswer ah gen BANK SECRECY LAW Bank deposits are hereby considered as of an absolutely Confidential nature and may not be examined, inquired or fooked into by any pefson, government offical, bureau or office even ‘With writen permission of the depositor, Incqses of impeachment, oF Upon order of a competent court in eases of bribery oF dereliction of duty of public officials: Fung of ox ‘evasion case before the Department of justice : ‘The Bank Secrecy Law (RA 1405) probibits disclosing any information about deposit records of an individual without cour onder except = O12 Bar Exam) ‘aig an examination to determine estate vee 7058, of in-an. investigation for violation of Anti-Graft and 6. ‘Corrupt Practices. jn aa investigation by the Ombudsman, = & 4 inan impeachment proceeding. X, a private individual, mainrains'a dollar deposit wit Teak Xlsrupecd bebe leer afe Kis or ‘Ransoor Gang and he is suspected of depositing all ransom, | RFBT Atty. ong‘oney in sald deposit account which are alin US Dollars. The police want to open said aocount to know if really deposits in big amounts, Which statement accurate? (2012 Bar Exam) The same rules under Secrecy of Bank Deposit Act will apply. b. An approval ftom the Monetary Board Is necessary to ‘open the account. ¢, Because the deposit is in US Dollars, it is covered by the Foreign Currency Deposit Act which allows _ disclosure only upon the written permission of the depositor. d. Approval from the Court disclosure ofthe account 4, Which of the following is an exception to the secrecy of i» bank deposits which are in Philippine Pesos, bui NOT an C exception tothe secrecy of foreign currency deposits? (2012 BarExam) 7 4 Upon Bangko Sentral ng Pilipinas (SSP) inguiry into or ‘examination of deposits or investments with any bank, ‘when the inguity or examination is made in the course of the SSP's periodie special examination of said bank 10 ensure compliance with the Anti-Money Laundesing ‘Act (AMLA). ‘6, Upon Philippine Deposit Insurance Corporation (PDIC) and SSP inquiry into and examination of deposit accounts in case there is a finding of unsafe or unsound banking practices ¢, Upon inquiry in cases of impeachment; 4. Upon inquiry by the Commissioner of Internal Revenue in the event a taxpayer files an application to ‘compromise his tax liabilities on the ground of financial necessary 10 order incapacity. 5. The following deposit or investment are covered under the Cenk secrecy law (R.A, 1405), except? ‘a. Investment in bonds issued by the Government of the al subdivision, of . Investment in bonds issued by p * the Philippine government cc. Investment in bonds issued by public company d. Time deposit UNCLAIMED BALANCES LAW ‘Unclaimed balances include credits or deposits of money, bullion, security or other evidence of indebledness of any ‘kind, and interest thereon with banks, buildings and loan associations, and trust corporations, in favor of fa. Any person known to be dead s b, Who bas not made further deposits or withdrawals during the preceding ten years or more ©, Both Aand B d._ Answer not given 2. When the treasure of the ‘general ofthe unelaimed balances, the latter shall commence © Sivaction inthe name ofthe republic of the Palos in jonal tril court of the province or city w! naan Gaston is loated, The action (05h sands, rene Philippines notifies the solicitor 4 Petition for quo warranto b. Petition for civil forfeiture proceeding ©. Petition for escheat proceedings Petition for certiorari = 3. Under the uriclaimed balances law (Act 3936 as amended by. 0. PD 679), the managing officer of the bank, building and Joan association or trust company sball submit to the ‘of the Philippings a swom statement of the ied balance, Flowever, a copy of the sworn statement Page 35 of 38 * (May 2019) ATTY. ONG shall be posted tn a conspicuous place in the premises of the bank, building and loan association, oF trust corporation ‘concerned for ‘at least ten days from the date of filing b, at least fifteen days from the date of filing 4 at least thirty days from the date of filing at least sixty days from the date of fling ERAL BANKING LAW OF 2000 ™ No director or officer of any bank shall, directly or indirectly, for himself or as the representative or agent of others, borrow from such bank nor shall fe become a ‘Ruarantor, endorser oF surety for Joans from such bank to cibers, oF in any manner be an obligor or ineur any ‘contractual liability to the bank except with 1. the written approval of the majority of all the directors ofthe bank, excluding the director concemed. , the oral or written approval of the majority of all the directors of the bank, excluding the director concemed. Ratified by majority of all the directors of the bank, ‘excluding the director concerned. 4. the waitten approval of the two third @/3) of all the directors ofthe bank, excluding the director concerned. Under the General banking law’ éF 2000 as increased by BSP circular 425, (Single bortoWer’s limit) the total amount of Joans, credit accommodations and guarantees that may be extended by a bank fo any person, partnership, association, corporation or other entity shal at no time exceed 2, - Ten percent (1096) ofthe net worth of such bank. b,_ Fifteen percent (15%) ofthe net worth of such bank. c. Twenty percent 2096) ofthe net worth of such bank. ._ Twenty percent (25%) of the net worth of such bank. ‘The following ave included in the prescribed ceiling in the compuiation of Single Borrower's Limit, except? the direct lisility of the maker or acceptor of paper discounted with or sold to such bank and the liability of a general indorser, drawer or guarantor who obtains a Joan or other credit accommodation from or discounts paper with or sells papers to such bank b. In the case of a corpor Of ail subsidiaries in which such corporation owns oF controls a majority interest. : In the case of a partnership, association or other entity, the liabilities ofthe members thereof to such bank. 4. Loans and other efedit accommodations covered by assignment of deposits maintained in the lending bank and held inthe Philippines SECURITIES REGULATION CODE sie Under the 2015 Implementing Rules and Regulation of the SRC of 2015, Public company means any corporation with a lass of equity securities listed on an Exchange, ot a. with assels in excess of Fifty Million Pesos (PhP $0,000,000.00) and tas two hundred (200) or more holders each holding atleast one hundred (100) shares 4, bial otis ety securities, . with assets in excess of Fifly Million Posos (PhP $0,000,000.00) and has ote hundred (100) or more holders each holding at Jeast one hundred (100) shares of a class ofits equity securities. with assets of at least Fifty Million Pesos (PhP 50,000,000.00) and has two hundeed (200) or more holders each holding at least one hundred (100) shares a, Oe ls ofits equity securities “with assets “of at least Fifty Million Pesos (PhP '50,000,000.00) and pas dHe hundred (100) or more RFBT Atty. Ong or5 ATTY.ONG, XCEL PROFE SSIONAL SERVICES, ING. (may 2019) osit holders each broking te ofa class ing af least one hundred (100) shares ice i's equity scents or in able announced intention by w peso ating alone “peaner with other persns cherie ered tt Ratton to acquire outstanding equity secure of publ OF outstanding equity securities of an assoclte or related compa ny of such pubs saaeannea Fs pte oman ws eae & Tender offer b. Publication «Offer to purchase hia {Answer nat X, WhoIs the Execitive Vice President ot ABC Corporation, ste! sorrpany, can be held ial i trail SPAY. can be Hed Table o ely of ids Re Tbolgiteblns Ge ABC cx sof ABC Corporation when it was Planning, to acquire another company to improve its ‘set base, the news of which inceasd the pice of th Shares in the Stock Exchange Teas . bought shares of XVC Corporation, a sister company of ABE Comin what te lewd. tha X¥C corporation was about 10 also Hist its share in the PhlippiteSo:k exchanges ‘ought sae 027 Corporation whe he ees hat crporation would acquire 222 Corporation Pees The pups of he Tenderer ale is 2012 Br eater ates piyng eld Yr a sacle of « feompany in terms of opportunity to sll ther shareho dings. b. ensure that minority shareholders if a publily listed Company ae protected in the. sense thai they. will equally have the same opportunity as the majority shareholders in terms of selling ther shares ensure that the sharefolders who would also Want to se their shareholdings will have the opportinity fora bet rice. 4. Allofthe above, Section 38 of The Securities Regulation Code defines en Independent ditecior a5 a person who must not have a elation seth the corporation which would interfere vith hs Trercise of, independent judgment in carrying cut the Stoponsibilties of a director, To ensute independence therefore, he must be - fu pominated and elected by the entire sharcholders 1B. Rominated and elected by the minority shareholders tf pominated and elected by the majority shareholers. 4. appointed by the Board. PHILIPPINE DEPOSIT INSURANCE CORPORATION © fhas three (3) deposit X is a depositor of AAA Bank. She ecounts all under her name. One in checking asso 88 peseving account and another one i time deposit wccouny i a bance of Pp2s0.000, AAA Bark i iippne Depost Insurance Comore ‘he Bank. X therefore is unable to withdrayy irom 4 clos ns, She the fled ber cai withthe Pilpping Deposit Insurance Corporation, Which statement is most - accurate? (2012 Bar Exam) X can claim a total of Phps 00,000 for all the three (3) account of Php2s0,000. ‘claim from one (1) SE ee a total of Php750,000 from anything from any of ME dep’ fe depositor Under PDIC Inv, the amount due to any Pons igo. leprd fea ipttimate. deposits in en iasured PANE TS iste of Jhlgaton ofthe deposivor to the insured bank a closure, but ty thowand pet Ae Not to exceed two {P250,000.00) , es b Less than hundred fifty “thousand Pe (250,000.00), Less than five 4. Not to exceed Five (P500,000 00. INTELLECTUAL PROPERTY CODE of presenting @ telephone ch he dubbed as the “Tel ‘names and telephone .d in his name? 4d. X cannot lai accounts. hundred fl dred thousand poss (500,000.00) 7“ ‘hundred thousand pesos: X came up with a new: way directory in a mobile phone, which tnd which uses lesser time far locating fhumbers. May X have his exploitation even without agreement of the patent owner under certain circumstances, ike national emergency, for reason of public interest, like national security, ete. The person who can grant such authority is - 2012 Bar Exam) fa. the Director General of the Intellechial Property Office b. the Director of Legal Affairs of the Intellectual Property Office. = . the owner of the Patent right. day agent of the over of the Patent right. 14, The Fait Use Doctrine allows others to utilize copyrighted -®, works under certain conditions. The factors to consider ‘whether use is fair or not would be the purpose and character of the use, nature of the copyrighted work, amount and substantiality of the portions used, and What else? (2012 Bar Exam) a, effect of the use upon the creator of the work. effect of the use tipon the potential market of the work. ¢, effect af the use upon the public in general, d. effect of the use upon the class in which the creator belongs, 1S, ete Property cases, fraudulent intent is not an slement of the cause of action except in cases involving: D Gold Be Eu xcept in cases involving: + a trademark infringement >. copyright infringement c. patent infringement 4, “unfaircompetition Ease of Doing Business and Efficient Government: Service Delivery Act of 2018 RFBT Atty. OngEXCEL PROFESSIONAL SERVICES, INC. 1. Under % aati ed jin case of simple transactions, all Tae acc guests submited shall be acted pon by Hotere d officer or employee within the prescribed Mores on in the Citizen's Charter which shall 4 Sees see Se thd he east plication or request was receiv . threo (3) working days from the date the request and/or: ‘complete application or request was received ¢. Five (3) working days from the date the request and/or complete application or request was received Seven (7) working days from the date the request and/or complete application or request was received 2. Under R.A. 11032, in case of complex transactions, all applisations or requests submitted shall be acted upon by the assigned officer or employee within the prescribed processing time stated in the Citizon's ‘Charter which shall not be longer than . 4. Three () working days from the date the request andlor corplete application or request was received 1b. Five (5) working days from the date the request andlor complete application or request was received Seven (7) working days from the date the request andlor comple application or request was received 4, Teu(10) working days from the date the request and/or complete application ar request was received 3. For applications or roquesss involving activities which pose danger fo public Beat, public safety, public moral, Peplig policy, and. highly technical application, the ped processing time shall inno case be longer than Prespifteen (15) working days or as determined by the government. agency ot instrumentality concerned, whichever is shorter b, Fiftecn (15) working days or as detemnined by the government agency of instrumentality concemed, whichever is longer ¢. Twenty (20) working days goverment ageaey or instrumé whichever is shorter 4. Twenty (20) working days or as determined by the ‘government agency or instrumentality concerned, ‘whichever is longer 4, Validity period of Business permits? ® a Twelve(12) months ‘2° * 74° b. One (1) year cc. Twenty-four (24) months 4. Twoyews © 1s or as dotermined by the entality concemed, Electronic Commerce Act of 2000 1. Refers to information generated, sent, received or stored 1D byelectrnic, optical or similar means a. Electronic Key b. “Electronic Signature ¢. Electronic Document 7, fg tteonicDeta Message 2 Refers information or the representation of ¢ information, data, figures, symbols or other modes of Paitenexresion, described or however represented, by wig ets established ota obligation extinguished, al ha feet may be prove and affirmed, which is rote recorded, transmitted, stored, processed, ot produced electronically Electronic Key % Blectronic Signature Pleetonie Doewnent 4 Hjectroni¢ Data Messawe® ‘ secure key pit, coraiatin sie capable of generating 9 e780 HYPO cae a hey for creating» digi ieee 7 oad x pul ong the gi sisal’ ayy communion wre b Compe ys Oat on pb ryonyicn 6 Asyomal elocronieeommuniation gue rules en one who are empowered 10. pont ! wed Sig staat of ie whe A sts provide qalhy Mundas of ions, as the case may be, and perfonms ftheton a tay be necessary fr te Spleen? of Commerce Actin the area of electronic cot coepariment of Science and Technology (DOST) f. Depertment of Trade and Industry (O71) ©. National Privacy Commission (SPC) S Department of transportation and Conmnunieatin (Dosr) Data Privacy Act of 2012 tthe following are functions of the National Privacy Commission, except "To impose a temporary oF ben on the processing of personal information, upon finding ast Tre processing will be detrimental to tational scuity nd public interest b. To Loordinate with other government agencies and the private, sector on efforts. 10 formulate and implement plans and policies to strengthen the protection of personal information inthe ocuntry ‘To file a criminal case agzinst violator for vicletion of the data privacy act. =" sown 4. To issue advisory opinions and interpret the provision of the data privacy act The data privacyact applies to an act done oF practice by entity ‘a. engaged inside the Philippines and in some circumstances outside of the Philippines b, engaged. inside the Philippines and outside of the Philippines in all circumstances ©. engaged inside the Philippines only 4. engaged outside of the Philippines only ‘The data privacy act does not spply to persona information processed for ‘ 2 Journalistic purpose b, Artistic purpose ©. Literary or research purpose d. Alloftiesbove = ‘The agency entrusted inser and i ausanapicayie ‘administer end implement the a. Department of science and techno! b. National Privacy Commission sei Communications © Department of Information and 4, National Telecommunication Commi Technology (DICT)