1. Non-compliance with this kind of obligation gives a right of action to compel performance.

a. Natural Obligations
b. Moral Obligations
c. Civil Obligations
d. All of the choices

2. Fluffy Iglesias is indebted to Marisol for P100,000. The debt became duwse and no payment was
made by Fluffy. Eventually, the right of action prescribed before Marisol can initiate any court
proceedings to compel performance. However, out of his own conscience, Fluffy eventually
paid the P100,000. In this case,
a. Fluffy can ask for the return of the P100,000 since the debt already prescribed.
b. Fluffy can ask for the return of the P100,000 on the ground of solution indebiti.
c. Fluffy cannot ask for the return of the P100,000 since Marisol has the right to retain
payment.
d. Fluffy cannot ask for the return of the P100,000 since ownership passes upon delivery of the
same.

3. The obligation to give support is an obligation arising from:

a. Law
b. Contract
c. Quasi-contract
d. Quasi-delict

4. Juan obliged himself to deliver a specific or determinate TV set to Pedro. If Juan fails to
perform his obligation, what is/are the remedies of Pedro?
a. Specific Performance
b. Substitute Performance
c. Both A and B
d. Neither A nor B

5. When the debtor binds himself to pay when his means permit him to do so, the obligation is
deemed:
a. Subject to a suspensive condition
b. Subject to a resolutory condition
c. One with a suspensive term
d. One with a resolutory term

6. Mark, while driving recklessly the cab of his employer, hit a Meralco post and caused serious
physical injuries to Mary, a passenger. Mary can sue Mark and make him liable under:

I. Contract
II. Quasi-Contract
III. Delict
IV. Quasi-Delict
 a. All of the above
b. All except III
c. III and IV only
d. I and IV only
7. First Statement: If an employer is sued for vicarious liability under quasi-delict, he can validly raise
the defense of diligence in the selection and supervision of the employee.

Second Statement: If an employer is made subsidiarily liable on the criminal action against his
employee, he can validly raise the defense of diligence in the selection and supervision of the
employee.

a. Both statements are true

b. Both statements are false
c. Only the first statement is true
d. Only the second statement is true

8. On June of 2020, S promised to sell to B, his house and lot, rented by another, should B pass the
CPA Board Exams. B took and passed the October 2020 Board Exams. Who would be entitled
to the rent from the time S promised to sell to Rochelle until the happening of the suspensive
condition?

a. B, since the happening of the condition retroacts to the day of the constitution of the
obligation.
b. S, because he is the owner of the house and lot during the time mentioned
c. B, because the obligation is unilateral and S is required to appropriate the rents in favor of
Rochelle
d. S, because the obligation is reciprocal, thus the fruits are deemed mutually compensated.

9. Ms. X, a Filipino citizen who resides in the US, instructed her bank to make a transfer of US$1,000.
Mellon Bank US facilitated the transfer but, by mistake, transferred US$1,000,000 to the account
of Ms. Y in Prudential Life Philippines. Mellon Bank now sues for the recovery of the excess
US$999,000. On what ground may the recovery be allowed?

i. Contract
ii. Quasi-contract
iii. Delict
iv. Quasi-delict

10. The civil liability arising from a crime requires:

a. Proof beyond reasonable doubt
b. Preponderance of evidence
c. An iota of evidence
d. Any of the choices
11. W, X, Y, Z are solidarily indebted to C for P40,000. When C demanded payment from W, the latter
raised the following defenses: X is a minor, Y’s share was already condoned and that Z is insolvent.
How much is W required to pay C?
a. P40,000
b. P30,000
c. P20,000
d. P10,000

12. Mr. D, a driver of a jeepney owned by Mr. O, while driving recklessly, hit a pedestrian, Mr. X and
injured his passenger Mr. P. Mr. P can sue for damages against Mr. O on the ground of:
a. Delict
b. Delict and Quasi-Delict
c. Delict, Quasi-Delict and Contract
d. Delict, Quasi-Delict, Contract and Quasi-Contract

13. A potestative suspensive condition solely dependent on the will of the debtor:
a. Does not affect the validity of the obligation
b. Makes the obligation voidable
c. Makes the obligation void
d. Is void and thus the obligation is treated as a pure obligation

14. Which of the following is false regarding a facultative obligation?

a. The right to substitute is with the debtor
b. The right to substitute can be expressly granted to the creditor
c. If the principal prestation is lost due to fortuitous events, before substitution, the obligation
is extinguished.
d. If the substitute prestation is lost due to fortuitous events, after substitution, the obligation
is extinguished
15. Armin was hired by Barbie for piano lessons which will begin 6 months after they entered the
contract. 3 months prior to the start of the contract, Armin was killed in an accident. Is Armin Jr., the
son of Armin obliged to teach piano lessons to Barbie?
a. No, if Armin Jr. is not capable of teaching piano lessons
b. Yes, because contracts take effect between the parties, their assigns and their heirs
c. No, because the contract between Armin and Barbie is personal in nature and not
transmissible.
d. Yes, because Armin Jr. would inherit not only the properties of Armin but also his
obligations.
16. A promised to deliver to B his car if the latter passes the October 2020 CPA Board Exam. On June 15,
2020, A changed the tires of the car to a more expensive brand. B passed the CPA Board Exam, in
this case:
a. A would be entitled to reimbursement for the cost of the tires with the right to
withhold delivery
b. A can withhold delivery until he is paid the cost of the tires
 c. A can remove the tires if he is not paid the cost of the tires even if it causes damage to the
car
d. A can only remove the new tires provided it will not cause damage to the car

17. D is indebted to C for P100,000 secured by a mortgage executed by M on his lot and a
guaranty by G. Which of the following is false if M offers to pay the loan?
a. C can be compelled to accept the payment
b. M will be subrogated to the rights of C after payment is made
c. M can later on collect from G if D fails to pay M
d. If it turns out that D already paid half of the loan, M can only collect P50,000

18. D promised to deliver to C his car worth P250,000, his laptop worth P80,000 or his diamond
ring worth P40,000. All the objects were lost in the order they were mentioned through the fault of
D. Which of the following is correct?
a. D is liable for P250,000, the value of the car
b. D is liable for P80,000, the value of the laptop
c. D is liable for P40,000, the value of the ring
d. D is liable for the value of whatever C chooses
19. A contract of loan was entered into where A, B, C, D and E are individually liable for
P100,000 to X and Y, joint creditors. Which of the following is correct?
a. X can demand the whole P100,000 from any one of A, B, C, D and E.
b. Y can demand only P20,000 from A, B, C, D and E, separately.
c. A may be compelled to pay P50,000 to either X or Y.
d. B may be compelled to pay P10,000 by either X or Y
20. X, crossing a pedestrian lane, did not see that the light was red. He was hit by a car driven by Z. In
this case,
a. Z is not liable for damages since X was himself negligent in crossing the street
b. Z’s liability can be reduced due to the contributory negligence of X
c. X’s negligence was the direct and proximate cause of the injury
d. X can recover damages since he was not negligent
21. Ms. Lessee rented an apartment unit from Mr. Lessor. They agreed that Ms. Lessee would pay for a
one-month deposit and one-month advance and would shoulder all utility costs during the
length of her possession. Ms. Lessee, without notice, left the apartment unit and never returned,
leaving an unpaid electric bill of P4,800. From whom can the electric company collect?
a. Ms. Lessee, because they stipulated in the contract that the Lessee is liable to pay the utility
bills
b. Mr. Lessor, because there was no valid substitution in the person of the debtor
c. Ms. Lessee and Mr. Lessor, equally
d. Neither Ms. Lessee nor Mr. Lessor
22. Compensation is not proper in all of the following cases, except:
a. Deposit on the part of the depositary
b. Bail as to the bailor
c. Support as to the one obliged to give support
d. Civil liability arising from a penal offense
23. Consignation alone, without tender of payment, will release the debtor from responsibility in all of
the following cases, except:
a. When the creditor is absent or unknown, or does not appear at the place of payment
b. When he is incapacitated to receive the payment at the time it is due
c. When the creditor validly refuses to give a receipt
d. When two or more persons claim the same right to collect

24. A condition which suspends the efficacy of the obligation and depends upon the sole will of the
debtor:
a. Makes the obligation void
b. Makes the condition void but does not affect the validity of the obligation
c. Is known as a potestative resolutory condition
d. Answer not given
25. When the service has become so difficult as to be manifestly beyond the contemplation of the
parties,
a. The obligation is automatically extinguished
b. The obligation remains in force and the debtor is required to comply under all
circumstances
c. The difficulty can be a valid ground for the court to release the debtor from
responsibility
d. Answer not given
26. The debtor is deemed to have lost his right to make use of the period in all of the following
instances, except:
a. When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt.
b. When he does not furnish to the creditor the guaranties or securities which he has
promised.
c. When by his own acts he has impaired said guaranties or securities after their
establishment but not if they disappear through a fortuitous event, in which case, he is not
required to provide an equally satisfactory security.
d. When the debtor violates any undertaking, in consideration of which the creditor
agreed to the period

27. D1 is indebted to C for P100,000. Prior to the due date, D1 suggested to C that D2, his brother, will
be paying for the obligation, to which C agreed. On the due date, C collected from D2, but he was
insolvent. In this case,
a. D1 is liable to C since he volunteered D2 to take his place as debtor
b. D1 not liable if the insolvency of D2 is already existing and of public knowledge
c. D1 is liable only if the insolvency was already existing at the time of the substitution and was
known to him
d. D1 is not liable since there was a valid novation
28. X promised to deliver his car to Y if the latter would draw a square that is at the same time a circle.
In this case,
a. The obligation will be treated as a pure obligation
 b. The impossible condition is deemed not written
c. The obligation is void for containing an impossible condition
d. The condition may be disregarded

29. The following are generally void contracts, except:

a. Contract of sale between the guardian and his ward concerning the property of the
latter.
b. Contract of lease between the executors and administrators and the estate concerning the
property of the estate under administration.
c. Contract of sale where the buyer is a government official entrusted with the
administration of the subject property
d. Contract of loan between the principal and an agent, where the latter was authorized to
borrow money.

30. The following are real contracts which require delivery for perfection, except:
a. Pledge
b. Chattel Mortgage
c. Mutuum
d. Deposit

31. Which of the following is a preparatory contract?

a. Lease
b. Partnership
c. Mortgage
d. Loan
32. Juan, who is indebted to Pedro for P100,000, sold his only remaining property to Jose. There
would be a presumption that the sale was in fraud of Pedro:
a. If Juan did not reserve sufficient properties to pay all debts contracted before the sale.
b. If Juan did not reserve sufficient properties to pay all debts contracted before and after the
sale.
c. When there has been some judgment obtained by Pedro issued against Juan before the
sale.
d. When there has been some judgment issued against Juan before the sale even if not
obtained by Pedro.

33. Which of the following can validly give consent to a contract:

a. Insane persons
b. Demented persons
c. Minors
d. Deaf-mutes who are blind
34. The following contracts are unenforceable if not in writing, except
a. Sale of land worth P499
b. Sale of personal property for at least P500
 c. Lease of a car with a term of more than 1 year
d. Contract for a piece of work not to be performed within a year

35. An action for annulment of a sale of registered land on the ground of fraud would prescribe in 4
years from:
a. Date of sale
b. Discovery thereof
c. Registration of the sale
d. Delivery

36. Which of the following contracts cannot be ratified?

a. Those whose cause or object did not exist at the time of the transaction
b. Unauthorized contracts
c. Those where one party is incapable of giving consent
d. Those that fail to comply with the Statute of Frauds

37. A orally sold his cellphone to B for P15,000, where the latter paid P499 down-payment and the
balance to be paid 30 days after. The contract entered into is:
a. Valid and enforceable
b. Rescissible
c. Void
d. Unenforceable

38. Juan obliged himself to deliver one of his five cars to Pedro, it was not specified which car. In this
case,
a. The contract would be interpreted following the least transmission of rights
b. The contract would be interpreted following the greatest reciprocity of interests
c. The contract is void
d. They would need to undergo reformation to clarify which car.

39. Which of the following is false with regards the person who can institute annulment of a
contract?
a. Only the incapacitated or injured party or his guardian can ask for annulment.
b. Creditors of the incapacitated party can ask for the annulment of the contract entered into
by their incapacitated debtor
c. Those who are capacitated cannot allege the incapacity of the other contracting party
d. Answer not given

40. Juan offered to sell his house and lot to Pedro for P1,500,000. Pedro was convinced and
accepted the same. Pedro gave P500 and was given 30 days to make good the balance of the price.
Before the expiration of the 30 days, Juan withdrew and returned Pedro’s P500 because he
found a new buyer who would pay twice the original price. In this case,
a. Juan validly withdrew the offer since it is within the 30 day period.
 b. Juan cannot validly withdraw the offer since there was an option money of P500 that
was given.
c. Juan validly withdrew the offer since he is still the owner of the house and lot pending
delivery.
d. Juan cannot validly withdraw the offer since there was already a perfected contract of sale.

41. Jose entered into a Contract to Sell with Mary concerning the former’s house and lot for P2,000,000.
Immediately, Mary took possession of the house and lot but under the Contract to Sell, ownership
will not transfer until full payment of the price. Mary was able to pay the full price 6 months after
and accordingly, Jose executed a Deed of Absolute Sale. Ownership transferred upon
a. Execution of the Contract to Sell
b. Occupancy of Mary of the house and lot
c. Full payment of the price
d. Execution of the Deed of Absolute Sale

42. S delivered 1,100 sacks of rice to B, which is 100 sacks in excess of the quantity agreed
upon, the buyer has the following options, except:
a. Accept the quantity agreed upon and reject the rest.
b. Accept the quantity delivered and pay at the contract rate.
c. Reject the whole if the contract is indivisible.
d. Reject the whole and ask for damages.

43. In order to validly exercise this right of an unpaid seller, the buyer must be insolvent:
a. Possessory Lien
b. Stoppage in Transitu
c. Right of Resale
d. Right of Rescission

44. Any affirmation of fact or any promise by the seller relating to the thing, if the natural
tendency of such affirmation or promise is to induce the buyer to purchase the same, and if the
buyer purchased the thing relying thereon.
a. Condition
b. Express Warranty
c. Advertisement
d. Marketing Disclosure

45. A sold his land to B with a right to repurchase the same within 10 years. A died, leaving A1 and A2 as
heirs, prior to the expiration of the 10 year period. Which of the following is incorrect?
a. A1 can exercise of the right of redemption only as to half the land.
b. A2 can exercise of the right of redemption as to the whole land.
c. B can compel the heirs to redeem jointly
d. If A2 wishes to exercise his right of redemption as to half of the land, B cannot be
compelled to accept a partial redemption
46. Juan bought a condominium unit from Bellagio Development Corporation (BDC) for
P15,000,000 paying P3,000,000 as down-payment and the balance payable in monthly
installments of P100,000. It was agreed that should the buyer fail to pay 2 or more
installments, the contract shall automatically be cancelled and that all payments shall be
forfeited in favor of BDC by way of rent. After paying 26 months’ worth of installments, Juan
failed to pay the 27th and 28th installment and BDC deemed the contract rescinded. In this case
(which is incorrect)?
a. The rescission is not valid
b. Juan is entitled to 90 days grace period
c. Juan is entitled to P2,800,000 cash surrender value
d. The stipulation providing for forfeiture of the payments is void

47. S sold to B a motorcycle worth P100,000, where B is required to pay P20,000 upon
execution of the sale and the balance payable at the end of 2020. B executed a chattel
mortgage on the motorcycle to secure his obligation. B, however, failed to pay the balance of
P80,000 on due date and S foreclosed the mortgage. In this case,
a. If the proceeds of the foreclosure is P70,000, S can still collect the deficiency.
b. If the proceeds of the foreclosure is P90,000, S is entitled to the excess.
c. If the proceeds of the foreclosure is P60,000, S can no longer collect the deficiency.
d. If the proceeds of the foreclosure is P100,000, S can cancel the sale and demand the
return of the motorcycle.

48. To defraud his creditors, S sold his land to B. B now seeks to register the land to which C, a creditor
of S objected on the ground that the sale is rescissible for being entered into to defraud S’s
creditors. Can B register the land?
a. No, because the contract of sale is rescissible
b. Yes, because the contract of sale has not been rescinded yet
c. No, because the contract of sale was in fraud of creditors
d. Yes, because the contract of sale is valid and its validity cannot be attacked collaterally in a
land registration proceeding

49. Under this principle, the validity and compliance of a contract cannot be left to the will of one party:
a. Relativity
b. Mutuality
c. Obligatory Force
d. Autonomy

50. There is fraud:

a. Usual exaggerations of in trade if the other party had an opportunity to know the facts
b. An expression of an opinion, which turned out to be false, made by an expert and the other
party relied on it
c. A misrepresentation made in good faith
d. Failure to disclose facts when there is no duty to reveal them
51. Which of the following contracts of sale is generally void?
 a. Between two insane persons
b. Between a minor and an insane person
c. Between husband and wife
d. Between accountant and client

52. H and W were to marry in 6 months time. To express his affection, H donated a house and lot to W
and informed W of said act through a love letter. W wrote back accepting the donation. Before
the wedding, however, W died. May the heirs of W be entitled to the property?
a. No, since the marriage did not take place
b. Yes, since the donation and its acceptance are in writing
c. No, since the donation and its acceptance are not in a public instrument
d. Yes, since H freely donated the property and W became the owner thereof
53. Payment to an incapacitated person is:
a. Void
b. Unenforceable
c. Valid under any circumstance
d. Valid if the payee benefitted therefrom

54. Reformation is not allowed in the following, except:

a. Donations inter vivos without any condition
b. Wills
c. When the real agreement is void
d. When it resulted from mutual mistake of the parties

55. Which of the following stipulation is valid?

a. A stipulation prohibiting the real estate mortgagor from disposing the mortgaged
property
b. A stipulation providing for automatic appropriation of the thing given by way of
pledge/mortgage in case of non-payment
c. A stipulation excluding a partner from sharing in the profits and losses
d. None of the choices

56. As a rule, a contract takes effect only between the parties, their assigns and their heirs.
Which of the following is not an exception to this rule?
a. A contract of real estate mortgage that is registered
b. A creditor initiating an action to rescind the fraudulent contract entered into by his
debtor
c. A person who maliciously induces another person to violate the terms of his contract
d. A third person who receives an incidental benefit from a contract

57. Rachel and Ross entered into a contract where Rachel would sell her lot with an area of 100sqm,
more or less, for P1,000 per sqm. It turns out that the actual area of the lot sold was only 90sqm.
Which of the following is not a valid remedy of Ross?
a. Specific Performance, if possible
 b. Proportionate Reduction of the Price
c. Rescission
d. None of the choices

58. In which of the following would the risk of loss be with the transferee upon delivery by the owner?
a. Sale on approval
b. Sale or return
c. Agency to sell
d. Sale on trial or satisfaction

59. The liability of the vendor, who is in good faith, for breach of warranty against eviction, in case there
is no waiver issued by the vendee, is composed of:
I. Value of the Thing
II. Interests
III. Costs of the Suit
IV. Expenses of the Contract
V. Damages

a. All of the above

b. I, II, III and IV only
c. I only
d. None of the above

60. In this kind of contract of sale, ownership transfers to the buyer at the time of delivery:
a. Absolute sale
b. Conditional sale
c. Contract to Sell
d. Unenforceable Sale

61. One is false:

a. A price is certain with reference to another thing certain
b. A price is certain if the determination thereof be left to the judgment of a special person or
persons
c. If the special person or persons be unable or unwilling to fix the price, the contract shall be
inefficacious regardless if the parties subsequently agreed on a price
d. If the special person or persons acted in bad faith or by mistake, the courts may fix the price

62. Sam and Dean entered into a contract where Sam would sell his lot with an area of 100sqm, more or
less, for P100,000, a lump sum sale. Which of the following is false?
a. If it turns out that the land only had an area of 90sqm, Dean can ask for the
proportionate reduction in the price and pay only P90,000.
b. Dean cannot ask for rescission if the actual area of the land turns out to be only 89sqm.
c. If it turns out that the land had an area of 110sqm, Sam is still required to deliver the whole
area and accept the price of P100,000 agreed upon.
 d. Dean is still bound to pay P100,000 regardless of the actual area of the land.

63. Lisang sold his land to Manolo on January 1. On January 5, Lisang sold the same land to
Nestor, who did not have any knowledge of the first sale and immediately took possession of the
same. On January 10, when Manolo went to visit the land he purchased, he saw that Nestor was
occupying the same. Nestor explained that he purchased the said land from Lisang. Manolo
immediately went to the Register of Deeds, but the records reflected that the land is still in the
name of Lisang. He then caused the registration of the Deed of Sale between him and Lisang. Who
has a better right over the land?
a. Manolo since he is the first registrant in good faith
b. Nestor since she is the first possessor in good faith
c. Lisang remains to have a better right over the land
d. Neither Manolo nor Nestor has a right over the land

64. In sale of rights, delivery may be made through the following, except:
a. Execution of the required document
b. Placing the evidence of the right in the hands of the buyer
c. Allowing the buyer to exercise the right with the consent of the seller
d. When the seller remains in possession of the same under a different capacity

65. In a contract of sale, the buyer is deemed to have accepted delivery in all of the following, except:
a. He intimates to the seller his acceptance
b. He does any act which is consistent with the ownership of the seller
c. After the lapse of reasonable time, he retains the goods without intimating to the seller that
he has rejected them
d. None of the above

66. In a true pacto de retro sale, the title and ownership of the property sold are immediately vested in
the vendee a retro, subject only to a resolutory condition of repurchase by the vendor a retro
within the stipulated period. This is known as:
a. Equitable mortgage
b. Conventional redemption
c. Legal redemption
d. Equity of redemption

67. The prescriptive period for a redhibitory action involving animals is _____ from delivery
thereof:
a. 40 days
b. 6 months
c. 4 years
d. 10 years

68. Naruto, while in Japan, called Boruto, his son, to sell Naruto’s land to Sasuke. A deed of absolute
sale was executed by Boruto, signing in behalf of Naruto. Sasuke immediately took possession of the
 said land. When Naruto came back to the Philippines, he sold the same land to Jiraiya in a private
instrument, who had no knowledge of the earlier sale made to Sasuke. Jiraiya never caused the
registration of the sale. In this case,
a. Sasuke has a better right since he first took possession in good faith
b. Jiraiya has a better right since the sale made to Sasuke is void for lack of authority to sell in
writing
c. Since the sale to Jiraiya was only in a private instrument, Sasuke has a better right
d. Jiraiya has a better right because the sale to Sasuke is void since Boruto is not the
owner
69. The sale of hope itself and if the thing hoped for should not come into existence, the sale remains to
be effective:
a. Emptio rei speratae
b. Emptio spei
c. Estoppel in pais
d. Pacto de retro sale
70. If a buyer of a residential condominium unit in instalment has paid an equivalent 3 years-worth
of installments, his rights include all of the following except:
a. Grace period of 90 days
b. Cash Surrender Value of 55%
c. Right to payment of cash surrender value in case of rescission
d. Right to a notice in case of rescission
71. Legendairy Corporation (LC) borrowed money from Goliath Bank (GB) in the amount of P100M. To
secure the payment of the loan, LC executed a real estate mortgage over its two parcels of
land. On due date, LC failed to pay, and GB caused the extrajudicial foreclosure of the
mortgage. How long is the redemption period?
a. Three months from the foreclosure sale or until registration of the sale, whichever is
earlier
b. Three months from the foreclosure sale
c. One year from the foreclosure sale
d. Ninety days to one hundred twenty days from the foreclosure sale or until a judicial
order of confirmation of the sale

72. Teddy pledged her diamond ring to secure her debt to Bobbie amounting to P20,000. Teddy
was not able to pay the said debt on due date and Bobbie caused the foreclosure of the pledge. In
this case, which of the following is false?
a. The foreclosure sale will be conducted by a notary public.
b. If the ring sold for P25,000, Teddy would be entitled to the excess if there is stipulation to
that effect
c. If the ring sold for P18,000, Bobbie would be entitled to the deficiency if there is
stipulation to that effect
d. Whether or not the ring was sold for more or less than the amount of the loan, the loan
shall be extinguished.
73. The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his
default in the performance of the conditions of the mortgage but before the confirmation of
the sale by the court is known as:
a. Accion publiciana
b. Equity of redemption
c. Right of pre-emption
d. Right of redemption
74. In which of the following accessory contracts is delivery a requirement for perfection?
a. Pledge
b. Real Estate Mortgage
c. Chattel Mortgage
d. None of the above
75. The disposal of the property subject to this accessory contract, during the existence of the contract,
cannot be prohibited by the creditor-pledgee/mortgagee:
a. Pledge
b. Real Estate Mortgage
c. Chattel Mortgage
d. None of the above

76. In legal redemption of co-owners, if there is more than one co-owner who signified his
intention to redeem, who shall be entitled to redeem?
a. The first one to signify his intention
b. The one who’s use is best justified
c. The one with the smaller lot area
d. All of them pro-rata

77. A buyer ordered 5,000 apples from the seller at P20 per apple. The fair market value thereof
is only P18 per apple. The seller delivered 4,000 apples. In case that the buyer was not aware that
the seller will not be able to deliver the deficiency,
a. He can accept all 4,000 apples and pay the seller at P20 per apple
b. He can accept all 4,000 apples and pay the P18 per apple
c. He cannot reject the delivery of the 4,000 apples since it is substantial compliance
d. All of the choices are correct
78. Penelope sold her land to Schneider with a right to repurchase the same without any agreed
period. What will be the period of redemption, if any?
a. None
b. 30 days
c. 4 years
d. 10 years

79. S sold to B a motorcycle for P100,000, where P20,000 is payable as downpayment, while the
balance is payable in equal monthly installments of P10,000 due at the end of each month
and was secured by a mortgage on the motorcycle. B paid the first installment, but defaulted in the
next 3. S foreclosed the mortgage. In this case,
 a. If the foreclosure sale resulted in a deficiency, S may still collect the balance
b. If the foreclosure sale resulted in an excess proceeds, S is entitled to such
c. S can still collect from B the balance regardless of the results of the foreclosure sale
d. S can no longer cancel the sale nor recover any deficiency

80. S Realty Development Co. (SRDC) sold to B a condominium unit in installments. B was able to pay
P5,000,000, equivalent to 10 years of installment and downpayment of P1,000,000. SRDC now
wants to cancel the sale due to non-payment of more than 2 installments beyond the grace
period allowed by law. How much would be the cash surrender value that B is entitled to?
a. P4,500,000
b. P3,750,000
c. P3,000,000
d. P2,500,000

81. Any registered cooperative may resolve to divide itself into the two (2) or more cooperatives upon
securing the approval of:
a. A majority of all members with voting rights
b. 1/3 of all members with voting rights
c. 2/3 of all members with voting rights
d. ¾ of all members with voting rights

82. Joe is a member of X Cooperative. X Cooperative had assets of P100 million and liabilities of
P60,000,000. As a member, Joe’s contribution to the cooperative is P150,000. Joe withdraws from
cooperative. Assuming the by-laws of the cooperative is silent on the matter, can Joe withdraw his
P150,000 contribution?
a. Yes, considering that there is no express prohibition on the by-laws on the matter.
b. Yes, but only 40% may be given to Joe. The remaining portion shall be retained by the
cooperative in payment of liabilities.
c. No, it will violate the trust fund doctrine.
d. No, the entire portion shall be retained by cooperative in payment of liabilities.

83. Under the Cooperative code, how long should documents or books pertaining to financial and
nonfinancial operations be kept for:
a. Three (3) years
b. Five (5) years
c. Seven (7) years
d. Ten (10) years

84. Statement 1: Members may transfer their shares or interest even without the approval of the Board
of Directors.
Statement 2: Generally, where a member of cooperative dies, his heir shall be entitled to the shares
of the decedent.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
 c. Both statements are true.
d. Both statements are not true.

85. Which of the following causes of vacancy will require general assembly to be filled up?
a. Resignation of the member of the Board
b. Civil interdiction
c. Death of a member of the Board
d. Expiration of the term

86. Business permits shall be valid for a period of:

a. One year
b. Two years
c. Three years
d. Four years

87. A complex transaction is required to be transferred for period of not longer than:
a. Five (5) working days from date of receipt
b. Seven (7) working days from date of receipt
c. Ten (10) working days from date of receipt
d. Fourteen (14) working days from date of receipt

88. What is the agency principally designated to implement the Ease of Doing Business Act?
a. Department of Trade and Industry
b. Securities and Exchange Commission
c. Anti-Red Tape Authority
d. Philippine Competition Commission

89. Which of the following is not part of the process of acceptance of applications or requests?
a. All officers or employees shall accept written applications, requests, and/or documents
being submitted by applicants or requesting parties of the officers or agencies.
b. The receiving officer or employee shall perform a final assessment of the application or
request.
c. The receiving officer or employee shall assign a unique identification number to an
application or request.
d. The receiving officer or employee shall issue an acknowledgement receipt.

90. Which of the following statements is false in relation to denials of application or request for access
to denials of application or request for access to government service?
a. The denial shall be fully explained in writing.
b. The denial shall state the name of the person making the denial.
c. The denials shall be dated.
d. The grounds upon which such denial is based shall be stated.

91. All of the following are covered entities/persons, except:

 a. Offshore banking units
b. Internet based casinos
c. Lawyer acting as independent legal professionals
d. Register of Deeds

92. Which of the following considered as an insured deposits?

I. Savings deposits

II. Certificates of time deposit

III. Foreign currency deposit

a. I only.
b. I and II only.
c. I and III only.
d. I,II, and III.
93. Belinda had the following deposits with DEF Bank:
I. Saving account #001 under her name, P100,000
II. Savings account #002 under her name, P80,000
III. Savings account #003 named after Belinda for the account of Minerva, P65,000
IV. Savings account #004 under both Belinda and Minerva as co-depositors, P44,000

How much is the insured deposit of Belinda?

a. P202,00
b. P224,000
c. P267,000
d. P289,000

94. Nanette had the following deposits with GHI Bank.

I. Account name is Nanette and Kylie, P600,000

II. Account name is Nanette or Kendra, P400,000
How much is Nanette’s insured deposit?
a. P400,000
b. P450,000
c. P500,000 (300,000 from the first deposit and P200,000 from the second deposit)
d. P500,000 (250,000 from the first deposit and P250,000 from the third deposit)

95. MNO Bank received a deposit of P600,000 from Mr. X in a single day. Is MNO Bank required to
report the deposit to the AMLC?

a. Yes, since the amount exceeded P500,000.

b. No, since there is no probable cause that the money came from predicate crimes enumerated
under the AMLA.
c. No, since Mr. X has not yet been accused of crime enumerated under the AMLA.
d. No, since Mr. X has not yet been accused of crime enumerated under the AMLA.