CARLOS HILADO MEMORIAL STATE COLLEGE

Fortune Towne Campus

Brgy. Estefania, Bacolod City

MIDTERM EXAMINATIONS
First Semester, AY 2021 - 2022

BUSINESS LAWS AND REGULATIONS

BS MANAGEMENT ACCOUNTING

I. MODIFIED TRUE OR FALSE - Write TRUE if the statement is correct and write the correct
answer if it is not correct. 2 points each

_______TRUE________ 1. When things are delivered to the buyer on approval, trial or

satisfaction, the ownership passes to the buyer upon delivery of the things.
________TRUE_______ 2. An industrial partner shall not share in the losses and his share in the
profits shall be just and equitable under the circumstances.
______DEBTOR_________ 3. A partners shall become a creditor if he fails to deliver his
promised contribution and shall be in delay from the time of a demand from the partnership.

______SUBJECT_________4. The contract of sale that is not subject to any condition is an

absolute contract of sale.
____EARNEST MONEY__ 5. Option money is considered as part of the price and can be
considered as proof of perfection of the contract.
__VOLUNTARY TERMINATION_____________ 6. One of the causes of involuntary termination
of partnership is termination of the definite term of the partnership.
_____SELLER__________ 7. The buyer is liable for the loss of the thing before perfection of the
contract.
____TRUE___________ 8. A partnership that has for its object determinate thing, their use or
fruits or specific undertaking, or the exercise of profession or vocation is particular partnership.
______TRUE_________ 9. The nature of partner’s liability with the partnership for everything
chargeable to the partnership due to delict or quasi-delict is joint.
_____TRUE__________ 10. The partnership must be in a public instrument if what is contributed
is an immovable or real rights regardless of its value.

II. IDENTIFICATION - Write the correct answers on the space provided. 2 points each

1. ____Silent partner__________ is a partners who who has no voice or active part in the
management of partnership business .
2. ____The goods__________ is the assent to become owner of the specific goods when delivery
of them is offered to the buyer.
3. When the manner of partnership management has not been agreed upon, all the partners shall
be considered _agents______________.
4. In a contract of sale, if the price is absolutely simulated, the sale is void_____.
5. Every contract of partnership having a capital of P3,000.00 or more, in money or property, shall
appear in a public instrument, which must be recorded in the _office of the Securities and
Exchange Commission__________.
6. Unless there is a stipulation to the contrary, the expenses of the execution or registration of the
sale shall be borne by the __vendor___.
7. ______Universal partnership_______________ is a partnership which comprises all that the
partners may acquire by their work or industry during the existence of the partnership.
8. The claim to the partner’s personal assets by creditors if the partnership cannot pay its debts
refers to ____unlimited liability____________________.
9. It is a special form of payment which is a conveyance of ownership of the thing as accepted
equivalent of performance. ______dation in payment________________
10. ___Bilateral reciprocal_____________ is a characteristic of a contract of sale which involves
exchange of value.

III. ESSAY - Answer the questions concisely and intelligently. 5 points each

1. X, Y and Z entered into a partnership to operate a restaurant business. When the restaurant
had gone past break-even stage and started to gain considerable profits, Z died. X and Y
continued the business without dissolving the partnership. They in fact opened a branch of the
restaurant, incurring obligations in the process. Creditors started demanding for the payment of
their obligations. Who are liable for the settlement of the partnership’s obligations? Explain.

Answer: Y and Z are liable for the settlement of the partnership’s obligation because as stated in
Article 1833 where the dissolution is caused by the act, death or insolvency of a partner, each
partner is liable to his co-partners for his share of any liability created by any partner acting for the
partnership as if the partnership had not been dissolved.

2. Mrs. A sold and delivered her diamond ring to Mrs. B. It was agreed upon that after ten (10)
days Mrs. B will name and fix the price. On the 10 th day, Mrs. B called up Mrs. A by telephone and
stated the price at P10,000.00. Mrs. A agreed. Is the sale perfected? Explain.

Answer: YES. First reason for the sale is perfected it is because there is a meeting of the minds on
both goods (diamond ring) , price (10 000) and condition (w/ in ten days). The sale is perfect
because both parties fulfill or perform the terms agreed upon in the contract, where the buyer
stated the price after 10 days and the seller agreed on the price of the ring.

3. Jack and John put up a partnership to engage in the computer repair business. Jack
contributed P200,000.00 while John his services. On the vacant stall on the left side of the
computer repair shop, Jack intends to put up his own eatery business, while on the vacant stall on
the right side, John plans to establish a bakery. Who of the two may validly establish his own
business without the consent of the other partner? Explain.
Jack because John is a industrial partner and he is not allowed to establish yes unless in Jack
agreed. Jack can validly established his own business without the consent of the other partner
because he contributed capital to the business while John contributed only service.

4. Mario kidnapped and tortured Jose for refusing to sell his land to Mario. Jose who could no
longer bear the physical pains inflicted upon him signed a document of sale in favor of Mario.
What kind of defective contract was the sale between Jose and Mario? Explain.

5. Isko and Manny are good friends. Isko sold and delivered his car to Manny. It was agreed and
understood that next Sunday Isko will name and fix the price of the car. Sunday came. Isko
called Manny by phone and fixed the price at P150,000.00. Is the sale perfected? Explain.

No the sale is not perfected even though there is a meeting of minds because it is not mentioned
that Manny agreed on the price stated by Isko.
6. Can a husband and wife form a limited partnership to engage in real estate business, with the
wife being a limited partner? Explain.

7. Daisy, Rose and Dahlia are general partners in a merchandising firm. Having contributed
equal amount to the capital, they also agree on equal distribution of whatever net profit is realized
per fiscal period. After two years of operation, however, Dahlia conveys her whole interest in the
partnership to Camia without the knowledge and consent of Daisy and Rose. Is the partnership
dissolved? Explain.

8. AJ, Ben and Carl are partners in 123 Partnership. Dindo represented himself as a partner in
123 Partnership to Eric who, on the belief of such representation extended P50,000.00 credit to
123 Partnership. Assuming only AJ and Ben consented to such representation, who will be held
liable? Explain.

9. Sara needs a size 10 leather shoes which is regularly available to the public for her boyfriend
Bong, but the same is out of stock, so she placed an order for one. On the other hand, Bong
placed an order for size 8, colored violet, (something not ordinarily made by the company) to be
given to X. What kind of contract was entered into by:
a. Sara - 5 pts
b. Bong - 5 pts