1. Which is the operative act that will give juridical personality upon a corporation? 9.

9. 1st Statement – In alternative obligations, the choice shall produce no effect except from the moment it has
A. The filing of the articles of incorporation. been communicated.
B. The filing of the by-laws. 2nd Statement - In facultative obligations, the creditor may have the right to choose the substitute in lieu of
C. The issuance of the certificate of incorporation. the principal obligation.
D. The execution by the incorporators of the articles of incorporation, which serves as the contract among A. Both statements are wrong. C. 1st statement is correct, 2nd statement is wrong.
themselves. B. Both statements are correct. D. 1st statement is wrong, 2nd statement is correct

2. Which of the following is non-negotiable? 10. To call a meeting for the purpose of removing a director of a corporation the required votes of the
A. “I promise to pay to the order of Mr. A the sum of P10,000 at the Banco De Oro Manila”; stockholders is:
B. “I promise to pay to the order of X the sum of P10,000 or to deliver one-fourth of the harvest in my farm A. majority of the stockholders present
at his option” B. ¾ of the outstanding capital stock
C. “I promise to pay Y or bearer in Manila the sum of P 10,000 10 days before death of his horse Petra” C. 2/3 of the outstanding capital stock
D. “I promise to pay Z or bearer in Manila the sum of P 10,000 on or before November 15, 2012”. D. majority of the outstanding capital stock

3. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in: 11. Not a valid qualification of directors in a stock corporation as stated in the by-laws:
A. sale on approval B. sale on return A. A director must be holder of at least P10,000 paid up shares as security for his action
C. sale on trial D. contract to sell B. A stipulation that at least 2/3 of the directors must be residents of the Philippines
C. A stipulation that all the shares he owns at the time he was elected as director may be disposed
4. Kenneth uses a savings account with a BDO bank. The contract between Kenneth and the bank is one of: off by him without forfeiting his directorship
A. Agency. B. Commodatum. D. That 5 shares of the capital stock must be registered in the name of such director
C. Deposit. D. Simple loan.
12. Which of the following is not negotiable?
5. One of the following is a similarity between real estate mortgage and antichresis. Which is it? A. “Pay to A or order P10,000 notice of dishonor waived”
A. The property is delivered to the creditor B. “Pay to A or order P10,000 on December 25, 2015”
B. The subject matter is a real property C. “Pay to A or order P10,000 or deliver two piglets at the option of the holder”
C. The creditor acquires the right to receive the fruits of the property D. “Pay to A or order P10,000 in US dollars on October 1, 2015”
D. The creditor is obliged to pay the taxes and charges upon the estate
13. Anything paid or delivered before the arrival of a period can be recovered by the debtor who paid by mistake
6. 1st Statement – The guardian cannot purchase the property of the ward and any stipulation to the contrary up to the extent of:
is void. A. interest B. without interest
2nd Statement – Sale of property between husband and wife is unenforceable if orally constituted unless C. interest and fruits D. may not be recovered
there is a judicial separation of property.
A. 1st statement is wrong, 2nd statement is correct 14. Statement No. 1 – An oral agreement to answer all expenses for the wedding reception if Tom marries
B. 1st statement is correct, 2nd statement is wrong. Jenny is unenforceable.
C. Both statements are correct Statement No. 2 – An oral contract of sale of a land is void.
D. Both statements are wrong. A. False, false. C. True, true
B. False, true. D. True, false
7. One centavo, P0.05, P0.10 and P0.25 centavo coins are legal tender up to:
A. P100.00 B. P500.00 C. P1000.00 D. Any Amount 15. The buyer will acquire what rights to the fruits of the things bought?
A. Personal right from the time of perfection and real right from the time the fruits arise
8. 1st Statement – If the authority is to lease a building to third persons for at least one year, a special B. Personal right from the obligation to deliver arises and real right from the time the fruits arise
power of attorney is necessary. C. Personal right from the time the fruits arise and real right upon delivery
2nd Statement – The authority to sell a property in behalf of the principal does not include the authority to D. Personal right from the time of perfection and real right upon delivery
mortgage.
A. 1st statement is wrong, 2nd statement is correct C. Both statements are correct 16. Which of the following statements is false?
B. 1st statement is correct, 2nd statement is wrong. D. Both statements are wrong A. Non stock corporations can have more than 15 trustees at one given time
B. Trust companies can be close corporations
 C. Educational corporations cannot issue no par value shares
D. No par value shares cannot be issued for a consideration less than five pesos per share 24. A, B and C secured a loan from D. The promissory note which evidence the obligation states; “I promise
to pay D or order P10,000 payable on demand” (sgd) A B C. The obligation is:
17. The instrument is discharged in the following instances except one? A. Solidary B. Divisible C. Indivisible D. Joint
A. Intentional cancellation of the instrument by the holder.
B. Payment by party primarily liable to holder or his authorized representative. 25. The right of pre-emption differs from the right of redemption in that in pre-emption:
C. Voluntary surrender of the instrument by the holder to the maker without collecting. A. The action is directed against the buyer.
D. Payment by maker of a promissory note before maturity date. B. The action is directed against the seller.
C. The right arises after the sale.
18. The following, except one, are valid considerations in a subscription agreement relative to the stocks of a D. There can be a rescission of the original sale.
corporation:
A. Intangible property 26. Which of the following is not a requisite for a valid novation?
B. Previous corporate obligations A. A previous valid obligation
C. Outstanding shares in exchange for stocks in the event of reclassification or conversion. B. Capacity and intention of parties to modify the obligation
D. Promissory notes C. Creation of new valid obligations
D. It must comply with the forms of donations
19. “I promise to pay to bearer, Janine, the sum of P200,000.00”(Sgd) Nicole. The promissory note is:
A. Negotiable promissory note payable on demand. 27. A, B and C executed a promissory note worded as follows:
B. Negotiable promissory note payable to order. “We do hereby jointly and severally promise to pay to the order of creditors L, M and N the sum of
C. Negotiable promissory note payable to bearer. P90,000”
D. Non-negotiable. How much can L collect from A?
A. P 30,000 B. P 90,000 C. P 10,000 D. P 45,000
20. 1st Statement – The acceptor of a bill may refuse to pay the holder on the ground that the signature of the
drawer is forged. 28. “I’ll give you a diamond ring if you will go to Hong Kong Disneyland this year”. This obligation is:
2nd Statement – An instrument is not negotiable if it is payable to the order of a fictitious person. A. Void B. Valid C. Rescissible D. Voidable
A. 1st statement is wrong, 2nd statement is correct
B. 1st statement is correct, 2nd statement is wrong. 29. Which of the following is excluded in the determination of liability arising from criminal offenses:
C. Both statements are correct A. Subrogation B. Restitution C. Reparation D. Indemnification
D. Both statements are wrong.
30. Mode of extinguishing obligation wherein the factor is the generosity of the creditor and the acceptance of
21. These statements are presented to you: the debtor:
I. A quasi-contract is an implied contract. A. Compensation B. Novation C. Confusion D. Condonation
II. Acquittal in the criminal case will excuse the accused from civil liability.
31. The duty to pay taxes and to support one’s family are classified as:
A. 1st statement is wrong, 2nd statement is correct A. Civil obligations C. Legal obligations
B. 1st statement is correct, 2nd statement is wrong. B. Natural obligations D. Conventional obligations
C. Both statements are correct
D. Both statements are wrong. 32. In facultative obligations, if substitution has been made, which of the following is false?
A. The obligation is extinguished
22. Dustin is obligated to deliver his laptop to Adrianne on December 20, 2014. The burden in this scenario is: B. The loss of the original prestation is immaterial
A. To give B. To do C. The obligation is converted into a simple obligation
C. Not to do D. Either A or B D. The obligation ceases to be facultative

23. Jensie, Rez, Christine and Rushnell, solidary debtors are obliged to give Arli, Ruth, Wayne, Mark and Josh, 33. 1st Statement - The receipt of a later installment of a debt without reservation as to prior installments, shall
joint creditors, P20,000. In this case: give rise to a disputable presumption that such installments have been paid.
A. Arli may collect from Rez P20,000 B. Arli may collect from Rez P4,000 2nd Statement - If a taxpayer pays his income tax liability for the current year, there is a presumption that
C. Arli may collect from Rez P5,000 D. Arli may collect from Rez P1,000 tax liability for the previous year has been paid.
 A. True, true B. True, false C. False, true D. False, false Statement 2: To lease real property to another person, the authority of the agent must be in a special power of
attorney if the lease is for one year.
34. 1st Statement – The indivisibility of an obligation does not necessarily results to solidarity Statement 3: The agent if authorized to borrow money can be the lender, but generally he cannot be the borrower
2nd Statement – If the suspensive condition depends upon the will of a third person, the obligation subject if he is authorized to lend.
to it is void.
A. 1st statement is true, 2nd statement false A. True, False, True B. True, True, False
B. Both statements are false C. False, False, True D. False, True, True
C. 1st statement false, 2nd statement true
D. Both statements are true 41. The stage of “conception” of a contract, is;
A. when the parties come to an agreement
35. The following are the liabilities of an acceptor except one: B. when the contract is fully executed
A. The existence of a drawer C. when there is a meeting of the parties’ minds
B. The capacity of the drawer D. when negotiations are in progress.
C. The genuineness of the drawer’s signature
D. The existence of valid consideration 42. True or False:
Statement 1: As a general rule, a limited partner’s interest is not assignable.
36. Alberto and Berlin entered into a universal partnership of all present property. Subsequently, Alberto, Statement 2: A limited partner may rightfully demand return of his contribution on the dissolution of a
inherited a parcel of land from his father. Will the land and its fruits belong to the partnership? partnership.
A. Yes, because universal partnership means contribution to all properties, present and future
B. Yes, if there was stipulation that the land to be inherited shall be considered contributed A. 1st statement is true, 2nd statement false
C. No, because the land and fruits are future properties, not existing at the time of the celebration of the contract B. Both statements are false
D. No, even if so stipulated that land inherited shall be considered contributed C. 1st statement false, 2nd statement true
D. Both statements are true
37. When the fulfillment of the condition depends upon the sole will of the:
A. debtor but it is resolutory, the obligation is valid 43. An unpaid seller’s right to resell the goods is available in the following cases, except:
B. debtor but it is suspensive, the obligation is valid A. If the goods are of perishable nature
C. creditor even if it is suspensive, the obligation is void. B. When the seller reserved the right to resell the goods
D. debtor, it is always void C. When the buyer has defaulted in the payment of the price for an unreasonable time
D. When the seller has lost lien on the goods.
38. A makes a note payable to B or order. The following are the indorsers of the note in the order of their
indorsements: B,C,D,E,F (holder) and G (subsequent holder.) The note is dishonored in the hands of F, who 44. A pledge is extinguished through the following cases except;
notifies B, C, D and E. Which is not correct? A. Return of the thing pledged
B. Written abandonment of the pledge
A. the notice given by F to B operates to the benefit of C, D, E and G C. Appropriation of the thing pledged after the thing is not sold at one public auction
B. the notice to C insures to the benefits of D, E and G D. Sale of the thing pledged
C. the notice to C insures to the benefits of B
D. the notice to D insures to the benefits of E and G 45. Which of the following statements relating to treasury shares is false?
A. They are not considered outstanding shares
39. Obligations under quasi-contracts will prescribe after: B. They carry the right to vote
A. 10 years C. They may be disposed at any time
B. 6 years D. They are not entitled to dividends
C. 5 years
D. 4 years 46. Robin, the payee of a check for P5,000 cashes it with a drawee bank on January 3, 2015, but the teller
gives him P6,000. Robin’s duty to return the excess of P1,000 to the bank is an obligation arising from:
40. True or False A. Quasi-Delicts B. Law C. Contract D. Delicts
Statement 1: In chattel mortgage, the mortgagor must execute an affidavit of good faith in order that the
mortgage shall be valid against third persons
47. Ruth, JM and Dustin are solidary liable to Mark for P30,000. Ruth pays Mark the whole amount due.
Dustin, however, is insolvent. Which of the following is correct?
A. Ruth can collect from JM, P15,000
B. Ruth can collect from JM, P10,000
C. Ruth can demand the return of P10,000 from Mark pertaining to Dustin’s share since Dustin is
insolvent
D. Ruth alone will bear the payment of Dustin’s share who is insolvent since Ruth made the payment.

48. True or False;

I. An instrument originally payable to order may be converted into a bearer instrument.
II. An instrument originally payable to bearer may be converted into an order instrument.
A. 1st statement is true, 2nd statement false
B. Both statements are false
C. 1st statement false, 2nd statement true
D. Both statements are true

49. Adrianne made a promissory note payable to Janine or bearer. After delivery, Janine indorsed the note to
Paul. Jensie stole the note and negotiated it to Shemrel by forging Paul’s signature. Thereafter, Shemrel
indorsed the note to Silver and Silver to Jeff, a holder in due course. Which of the following defenses are
available to Adrianne, Janine and Paul against Jeff?
I. Forgery of Paul’s signature
II. Want of delivery of note by Paul since the note was stolen from him

A. I only B. II only C. both I and II D. neither I nor II

50. The price stipulated by the parties to a mortgage contract below which the property shall not be sold at a
public auction
A. Upset price B. Acquisition Price C. Market Price D. Selling Price