UNIVERSITY OF STO-TOMAS – LEGAZPI

Integrative Accounting – Regulatory Framework for Business Transactions

2nd semester, S.Y. 2019-2020

(SPECIAL) PRELIMS EXAMINATION

Name: _______________________________________________________________________ Date: ____________________________ Score: __________________

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. There shall be no reformation in the following case, except:

a. Wills
b. Simple donations inter vivos wherein no condition is imposed
c. Simple donations mortis causa wherein no condition is imposed
d. When the real agreement is void
____ 2. These contracts are those where there is an exchange of valuable consideration between parties such as
contract of sale and barter
a. onerous contracts c. indemnity contracts
b. gratuitous contracts d. remunatory contrats
____ 3. They refer to the elements that may be stipulated by the contracting parties
a. Accidental elements c. Artificial elements
b. Natural elements d. Incidental elements
____ 4. Businessman A puts up a sari-sari store named “Andongs”. B also puts up a sari-sari store named “Andongs” a
month later. Can A filed against B an infringement case?
a. Yes. A can file an infringement case against B for unlawfully using his tradename.
b. No. He has not registered his tradename.
c. Yes. This is a case of unfair competition.
d. No. He has not registered his trademark.
___ 5. Refers to those that are perfected by the delivery of the object of the contract such as depositum, pledge and
commodatum
a. formal contract c. real contract
b. solemn contract d. accessory contract
____ 6. Any of the debtors is bound to render compliance of the entire obligation
a. alternative b. facultative c. joint d. solidary
____ 7. Under the Anti-Money Laundering Law, a covered institution is required to maintain a system of verifying the
true identity of their clients as well as persons purporting to act on behalf of
a. Those doing business with such clients.
b. Unknown principals.
c. The covered institution.
d. Such clients.
____ 8. X works as a research computer engineer with the Institute of Computer Technology, a government agency.
When not busy with his work, but during office hours, he developed a software program for law firms that will
allow efficient monitoring of the cases, which software program is not at all related to his work. Assuming the
program is patentable, who has the right over the patent?
a. X
b. Institute of Computer Technology
c. Neither X nor the Institute of Computer Technology can claim patent right over the invention
d. X and the employer of X will jointly have the rights over the patent
____ 9. The following cannot be the object of a contract, except:
a. Those that are licit or not contrary to law, morals and good customs
b. Those that can be possibly accomplished
c. Those that are outside the commerce of men
d. Those rights that are intransmissible
____ 10. This refer to the period in which an insane person temporarily regains his sanity and is capable of perfect
enjoyment of his mental faculties for the time being
a. lucid interval c. intermittent sanity
b. interlude d. intervention
____ 11. Default on the part of the creditor
a. Mora accipiendi c. Mora solvendi ex-persona
b. Mora solvendi ex-re d. Compensatio morae
____ 12. Koby verbally sold his land to Garp for P500,000. The contract entered into by parties is
a. Rescissible c. Unenforceable
b. Voidable d. Void
____ 13. Substitution of debtor where the initiative comes from the debtor.
a. Delegacion c. Subrogation
b. Expromission d. Novation
____ 14. A possessor of a thing not as an owner, becomes the possessor as owner.
a. Traditio simbolica c. Traditio brevi-manu
b. Traditio longa-manu d. Constitutum possessorium
____ 15. Damages awarded to vindicate a right
a. Liquidated c. Nominal
b. Actual d. Exemplary
____ 16. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit
a. Of both the creditor and debtor c. Of the debtor only
b. Of the creditor only d. Of third persons
____ 17. It is the meeting of minds between two persons whereby one binds himself, with respect to the other, to give
something or to render some service
a. contract c. negotiorum gestio
b. obligation d. dausi-delict
____ 18. The following except one, are included in civil liability. The exception is:
a. Restitution c. Indemnification
b. Reparation d. Starvation
____ 19. When two persons on their own right are creditors and debtors of each other
a. Confusion c. Novation
b. Compensation d. Condonation
____ 20. This refers to the remedy allowed by law to the contracting parties and to third person/s to repair the damage
cause them by a contract.
a. annulment c. rescission
b. vitiation d. revocation
____ 21. An absolutely simulated or fictitious contract is
a. Void c. Rescissible
b. Voidable d. Unenforceable
____ 22. The following are considered void contracts, except:
a. Those which are relatively simulated or fictitious contracts
b. Those whose cause or object did not exist at the time of the transaction
c. Those whose object is outside the commerce of men
d. Those which contemplate an impossible service
____ 23. Contracts are generally effective only between the parties, their assigns and their heirs
a. Consensuality of contract c. Mutuality of contract
b. Simplicity of contract d. Relativity of contract
____ 24. If A sells to B a fountain pen, the giving by A to B of the fountain pen is
a. Actual tradition c. Symbolical tradition
b. Constructive delivery d. Traditio longa-manu
____ 25. Characteristic of void contracts, except:
a. Defense of illegality cannot be waived
b. Cannot be ratified
c. Action for declaration of inexistence does not prescribe
d. The inexistence can be assailed by third person
____ 26. In Facultative obligations, if substitution has been made, but the substitute is lost due to debtor’s fault, which
is true?
a. The obligation is extinguished
b. The debtor is liable for damages
c. The original prestation must be given
d. The debtor must give another object which is equally satisfactory
____ 27. The following are considered in determining whether undue influence deprive the party the reasonable
freedom of choice, except:
a. degree of intoxication of one of the contracting parties
b. the family relations between the parties
c. one of the party is in financial distress
d. degree of education of one of the parties
____ 28. The following persons cannot give his/her valid consent, except:
a. a pianist of the Philharmonic Orchestra who was born blind. He has been a member of the
orchestra for 20 years now
b. a 15-year old genius students who just graduated summa cum laude for BS Accoutancy at
University of the Philippines
c. person suffering from senile dementia
d. none of the above
____ 29. This means bringing the parties back to their original status prior to the inception of the contract
a. mutual restitution c. redirection
b. recompensation d. annulment
____ 30. A defective contract because it is entered into in the name of another without or in excess of his authority
a. Void c. Rescissible
b. Voidable d. Unenforceable
____ 31. The Sogod Hotel chain reproduces DVD’s, distributes the copies thereof to its hotels and makes them available
to hotel guests for viewing in the hotel guest rooms and charges a separate fee for the use of the DVD players.
Is Sogod Hotel liable for infringement?
a. No, the DVD viewing is done privately in the hotel guest rooms.
b. Yes, because the reproduction of the DVD’s violates the copyright or economic rights of the
owner of the film. The hotel charge fees for the use of DVD player as well as there are room
charges, they earn gain from the use of the DVD because it entices the guests to check-in in
their hotel.
c. No, the DVD viewing is part of the hotel services and it is the use of the DVD players that is
charged and not the cost of the DVD.
d. None of the above
____ 32. The following are voidable contracts, except:
a. when one of the contracting parties is incapable of giving consent to a contract
b. when both of the contracting parties is incapable of giving consent to a contract
c. when consent is vitiated by violence
d. those entered into during state of drunkenness
____ 33. Refer to those which have caused a particular economic damage either to one of the parties or to a third
person and which may be set aside even if valid
a. voidable contracts c. void contracts
b. rescissible contracts d. unenforceable contracts
____ 34. A was able to invent a new type of vehicle. However, B was able to register the invention first although it was
clearly A who was the true inventor. What remedy may A avail of?
a. He will file a civil case of patent infringement
b. He can file for cancellation of patent plus damages
c. He can file for the substitution as the real patentee
d. Both A and C
____ 35. Statement 1: The interpretation of obscure words or stipulations in a contract shall not favor the party who
caused the obscurity
Statement 2: When the contract contains obscure words or stipulations, it shall be deemed as void from the
very beginning
a. only statement 1 is correct c. both statements are correct
b. only statement 2 is correct d. both statements are not correct
____ 36. It refers o contract where one which the fulfillment of the obligation depends upon chance such as contract of
insurance
a. emptio rei spei contract c. commutative contract
b. aleatory contract d. conditional contract
____ 37. The right of the creditor that is enforceable against a definite debtor is
a. Real right c. Moral right
b. Natural right d. Personal right
____ 38. Statement 1: When one of the parties has brought an action to enforce the instrument, he cannot
subsequently ask for its reformation.
Statement 2: When parties sought to enforce the instrument, it doesn’t mean that he waived his right to ask
reformation of instrument if enforcement cannot be complied by the other party
a. both statements are incorrect c. only statement 2 is correct
b. only statement 1 is correct d. both statements are correct
____ 39. The following are the characteristics of a void contract, except:
a. The right to set up illegality cannot be waived.
b. It cannot be ratified
c. Mutual restitution is allowed
d. The action or defense for the declaration of the inexistence of a contract does not prescribe.
____ 40. The principle that contracting parties may establish such stipulations, clauses, terms and conditions as they
may deem convenient, provided they are not contrary to law, moral, public policy and public order, refer to
the principle of
a. Liberty of contract c. Consensuality of contract
b. Relativity of contract d. Mutuality of contract
____ 41. This refers to defect in consent when one of the contracting parties is compelled by a reasonable and well-
grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of
his spouse, descendants or ascendants, to give his consent.
a. physical coercion c. undue influence
b. mora accipiendi d. moral coercion
____ 42. This refers to the contract where the parties intend a simulated contract to impose obligations which are
different from the ones stated in the contract
a. relative simulated contract c. semi-simulated contract
b. absolute simulated contract d. quasi-simulated contract
____ 43. The following are the requisites of an obligation, except:
 a. Passive and active subject c. Efficient cause
b. Prestation d. Demand
____ 44. The Anti-Money Laundering Law is a law that seeks to prevent money laundering activities by providing for
more transparency in the Philippine Financial System, hence the following institutions are covered by the law,
except:
a. Bank and any financial institutions c. Casino operators
b. Pawnshops d. All of the above
____ 45. A contract where one party receives no valuable consideration and the cause is the liberality of the benefactor
is
a. A gratuitous contract c. An onerous contract
b. A unilateral contract d. A commutative contract
____ 46. What is the basis of the liability of a school when a student is stabbed inside the campus by a stranger in the
school?
a. Contracts c. Delicts
b. Quasi-contracts d. Quasi-delicts
____ 47. Readers to a contract which cannot be legally enforced because of some deficiency in the agreement. It cannot
be enforced unless ratified
a. unenforceable contract c. defective contract
b. invalid contract d. voidable contract
____ 48. Products of the soil through cultivation or intervention of human labor.
a. natural b. industrial c. civil d. penal
____ 49. Refers to a contract or provision in a contract that confers benefit to a third party
a. Stipulation del beneficio c. Stipulation credito
b. Stipulation pour autrui d. Stipulation pauliana
____ 50. Contracts perfected by mere consent is referred to as
a. consensual contracts c. formal contracts
b. real contracts d. solemn contracts
____ 51. Public instruments mean that
a. the instrument is computer-printed
b. the instrument is notarized by a notary public
c. the instrument bears the seal of the contracting parties
d. the instrument is signed by the parties and their witnesses
____ 52. This obligation is demandable at once when it
a. has a resolutory condition c. is with a term ex-die
b. has a suspensive condition d. has a period
____ 53. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors.
a. Accion reinvindicatoria c. Accion subrogatoria
b. Accion pauliana d. Accion quanti-minoris
____ 54. Which is not an essential element of a contract?
a. Consent of the contracting parties
b. Object certain which is the subject matter of the contract
c. Cause of the obligation which must be established
d. Warranty against hidden defects
____ 55. Which of the following contract should be in writing, otherwise, it is void
a. contract of sale involving specific motor vehicle with a price of P500,000
b. authority of the agent to sell the real property of the owner
c. the power to administer all the business enterprises of the owner
d. lease of condominium unit at P10,000 per month
____ 56. If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the
proper remedy is
a. reformation of the instrument c. annulment of the contract
b. reformatting of the instrument d. enforcement of the contract
____ 57. There is delivery by mere consent or pointing out of an object.
a. Traditio simbolica c. Traditio brevi-manu
b. Traditio longa-manu d. Constitutum possessorium
____ 58. Synonymous to obligor
1. Creditor 2. Active subject 3. Debtor 4. Passive subject
a. 1 and 2 b. 1 and 4 c. 2 and 3 d. 3 and 4
____ 59. A juridical relation resulting from a lawful, voluntary, and unilateral act and which has for its purpose the
payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of another.
a. Contract c. Delicts
b. Quasi-contract d. Quasi-delicts
____ 60. The conception of a contract is when
a. When there is meeting of the minds
b. When negotiations are in progress
c. When the contract is executed
d. When the parties come to an agreement
____ 61. X is a depositor of AAA Bank. She has three (3) deposit accounts all under her name. One, in checking account,
one in saving account and another one in time deposit account. Each account has a balance of Php250,000.
AAA Bank became insolvent. Philippine Deposit Insurance Corporation closed the Bank. X therefore is unable
to withdraw from all of the accounts. She then filed her claims with the Philippine Deposit Insurance
Corporation. Which statement is most accurate?
a. X can claim a total of Php500,000 for all the three (3) accounts.
b. X can only claim from one (1) account of Php250,000.
c. X can claim a total of Php750,000 from all the three (3) accounts.
d. X cannot claim anything from any of the deposit accounts.
____ 62. The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit records of an individual
without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices
c. In an investigation by the Ombudsman
d. In an impeachment proceeding
____ 63. The following are the essential elements of contract, except:
a. Consent of the contracting parties
b. Object certain which is the subject matter of the contract
c. Price which must be stated in acceptable legal currency
d. Cause of the obligation which must be established
____ 64. Apart from economic rights, the author of a copyright also has moral rights which he may transfer by way of
assignment. The term of these moral rights shall last
a. During the author's lifetime and for 50 years after his death.
b. Forever.
c. 50 years from the time the author created his work.
d. During the author's lifetime.
____ 65. They give a right of action to compel their performance
a. Civil obligation c. Natural obligation
b. Moral obligation d. Social obligation
____ 66. This refers to a contract whereby the offerer gives the offeree the privilege to purchase or not a certain object
for a fixed price at any time within an agreed period for a fixed price.
a. earnest contract c. preparatory contract
b. option contract d. voidable contract
____ 67. When a person voluntarily takes charge of another’s abandoned business or property without the owner’s
authority where reimbursement must be made for necessary and useful expenses.
a. Quasi-contract c. Negotiorum gestio
b. Quasi-delict d. Solutio indebiti
____ 68. From the time the fruits have been delivered, the creditor shall acquire
a. Real right b. Personal right c. Moral right d. Inchoate right
____ 69. Tort or culpa aquiliana is
a. Quasi-contract c. Negotiorum gestio
b. Quasi-delict d. Solutio indebiti
____ 70. A defective contract because it is prohibited by law
a. Void c. Rescissible
b. Voidable d. Unenforceable
____ 71. Where a property is alienated to the creditor in satisfaction of a debt in money
a. Dation in payment c. Application of payment
b. Payment by cession d. Consignation
____ 72. It refers to an ambiguity that does not readily appear in the language of a document, but arises from a
collateral matter when the document’s terms are applied or executed.
a. intrinsic ambiguity c. casual ambiguity
b. formal ambiguity d. extrinsic abiguity
____ 73. It means that stipulations in the contract are binding only upon the parties and their successors.
a. Relativity of contract c. Mutuality of contract
b. Consensuality of contract d. Reciprocity of contract
____ 74. Which of the following does not vitiate consent?
a. simple error c. undue influence
b. physical coercion d. intimidation
____ 75. The obligation of husband and wife to render mutual help and support arises from
a. Contract c. Quasi-contract
b. Law d. Quasi-delict
____ 76. The action to claim rescission must be commenced
a. within 4 years from the time the rescissible contract was entered into by the guardian
b. within 4 years from the time the minor reaches the age of minority
c. within 4 years from the time the creditor knew of the debtor’s fraudulent contract entered
into with a third person
d. all of the above
____ 77. The creditor has the right to the fruits of the thing
a. From the time the obligation to deliver it arises
b. From the time the fruits have been delivered
c. From the time there is meeting of the minds
d. From the perfection of the contract
____ 78. Which of the following is a civil obligation?
a. X obliges himself to pay Y P10,000 on October 30, 2025.
b. A is a debtor of B for P20,000 due on September 30, 1995
c. The obligation of a husband and wife to observe fidelity
d. The obligation of a catholic to hear mass every Sunday
____ 79. Lesion or inadequacy of cause shall invalidate a contract
a. When there was fraud, mistake or undue influence
b. When the selling price is below the fair market value of the property
c. When both the seller and the buyer are minors
d. When the amount is payable in foreign currency
____ 80. They are the elements that are found in certain contracts and are presumed to exist unless set aside by the
parties
a. Accidental elements c. Artificial elements
b. Natural elements d. Incidental elements
special exam
Answer Section

MULTIPLE CHOICE

1. ANS: C PTS: 1
2. ANS: A PTS: 1
3. ANS: A PTS: 1
4. ANS: A PTS: 1
5. ANS: C PTS: 1
6. ANS: D PTS: 1
7. ANS: D PTS: 1
8. ANS: A PTS: 1
9. ANS: B PTS: 1
10. ANS: A PTS: 1
11. ANS: A PTS: 1
12. ANS: C PTS: 1
13. ANS: A PTS: 1
14. ANS: C PTS: 1
15. ANS: C PTS: 1
16. ANS: A PTS: 1
17. ANS: A PTS: 1
18. ANS: D PTS: 1
19. ANS: B PTS: 1
20. ANS: C PTS: 1
21. ANS: A PTS: 1
22. ANS: A PTS: 1
23. ANS: D PTS: 1
24. ANS: A PTS: 1
25. ANS: D PTS: 1
26. ANS: B PTS: 1
27. ANS: A PTS: 1
28. ANS: B PTS: 1
29. ANS: A PTS: 1
30. ANS: D PTS: 1
31. ANS: B PTS: 1
32. ANS: B PTS: 1
33. ANS: B PTS: 1
34. ANS: B PTS: 1
35. ANS: A PTS: 1
36. ANS: B PTS: 1
37. ANS: D PTS: 1
38. ANS: B PTS: 1
39. ANS: C PTS: 1
40. ANS: A PTS: 1
41. ANS: D PTS: 1
42. ANS: A PTS: 1
43. ANS: D PTS: 1
44. ANS: C PTS: 1
45. ANS: A PTS: 1
46. ANS: A PTS: 1
47. ANS: A PTS: 1
48. ANS: B PTS: 1
49. ANS: B PTS: 1
50. ANS: A PTS: 1
51. ANS: B PTS: 1
52. ANS: A PTS: 1
53. ANS: B PTS: 1
54. ANS: D PTS: 1
55. ANS: B PTS: 1
56. ANS: C PTS: 1
57. ANS: B PTS: 1
58. ANS: D PTS: 1
59. ANS: B PTS: 1
60. ANS: B PTS: 1
61. ANS: A PTS: 1
62. ANS: A PTS: 1
63. ANS: C PTS: 1
64. ANS: A PTS: 1
65. ANS: A PTS: 1
66. ANS: B PTS: 1
67. ANS: C PTS: 1
68. ANS: A PTS: 1
69. ANS: B PTS: 1
70. ANS: A PTS: 1
71. ANS: A PTS: 1
72. ANS: D PTS: 1
73. ANS: A PTS: 1
74. ANS: A PTS: 1
75. ANS: B PTS: 1
76. ANS: B PTS: 1
77. ANS: A PTS: 1
78. ANS: A PTS: 1
79. ANS: A PTS: 1
80. ANS: B PTS: 1