ACREV 424 7. A and B are joint debtors of X.
Subsequently, A became
Updates in Regulatory Frameworks for Business
Transactions
MOCKBOARD EXAMINATION – MIDTERM
Set B
(for exclusive use by the Department of Accountancy, Business
Laws and Taxation, Saint Louis University, 2600 Baguio City,
Philippines)
GENERAL INSTRUCTIONS:
Before answering the following theory questions and problems,
fill up the following information in your Answer Sheet
using indelible BLUE-INK or BLACK-INK ballpoint pen –
"SURNAME," "GIVEN NAME," "SUBJECT," "PROFESSOR'S
NAME," "SLU ID NO.," "CLASS CODE/NO." and "CLASS
PROFESSOR CODE." Using #2 PENCIL, shade the
corresponding numbers and/or letters below or beside the "SLU
ID NO.", "CLASS CODE/NO.", "CLASS PROFESSOR CODE,"
"SET," "TERM," and "EXAM PART" (these shaded boxes is
what the OMR machine will capture). Insufficient data would
render your Answer Sheet invalidated.
1. Which of the following shall be considered as determinate
object?
a. P10,000 bills
b. P10,000 which I have in my wallet now
c. P10,000 which I have in my BPI-Session Road
savings account
d. Both (a) and (b)
2. What is the nature of liability of two or more persons liable
for quasi-delict?
a. Primary
b. Joint
c. Solidary
d. subsidiary
3. In the following, one shall be liable for damages, except?
a. Fraud
b. Negligence
c. Contravention of tenor of obligation
d. None of the above
4. S sold to B a specific car for P300,000 and promised to
deliver on December 25. The next day, after the sale was
made, he sold the same car to X and delivered it to him on
the same day. If no delivery is made by S to B on
December 26, which of the following is correct?
a. S is not in default because there was no demand.
b. S is in default, even if there was no demand.
Hence, he will answer for damages.
c. B can cancel the contract between S and X
because the contract of S and B was perfected
ahead of the contract with X.
d. S is liable to B for the value of the car
5. I promise to pay my debt when I have the money. This is
an obligation which is-
a. With a period
b. With a condition
c. Pure
d. Invalid
6. Believing that his debt is due when in fact it is not, Dr paid
his 10,000 debt to Cr. Give the effect of this payment?
a. Dr may not recover because the payment is valid.
b. Dr may not recover because anyway he is
indebted to that amount and it has to paid.
c. Dr. may recover his payment because it was not
yet due together with the fruits and interest from
the time of payment.
d. Both a and b
insolvent. What is the effect of the insolvency of A?
a. The obligation becomes solidary because only B
remains as the one liable.
b. The obligation becomes solidary but B will ask
reimbursement from A later.
c. The obligation remains a joint obligation. B will
pay the whole obligation and will ask
reimbursement from A later.
d. The obligation remains a joint obligation. B will
pay only his share in the obligation.
8. Which is the correct order of the place of payment?
a. In the place stipulated in the contract, place where
determinate object is located, place of domicile of
creditor
b. In the place where determinate object is located,
place stipulated in the contract, place of domicile
of creditor
c. In the place stipulated in the contract, place where
determinate object is located, place of domicile of
debtor
d. In the place stipulated in the contract, place of
domicile of debtor, place where determinate object
is located
9. Debtors X,Y,and Z owe Creditor the amount of P90,000
equally divided. Mr. G guaranteed the payment of the
whole obligation. Debtors issued a promissory note in favor
of Creditor. Creditor subsequently negotiated the note to A.
A negotiated it to B, then B to C.
Considering the above situation, which is a false
statement?
a. If C later negotiates the note back to the debtors,
the obligation of Mr. G is also extinguished.
b. If C later negotiates the note to Mr. G, the
obligation remains. Only the obligation of Mr. G is
extinguished.
c. If C later negotiates the note back to X for his
share only, the whole obligation is extinguished
subject to reimbursement.
d. Assuming the debtors are solidary debtors, if C
later negotiates the note back to X only, the whole
obligation is extinguished and so with the
obligation of Mr. G.
10. Which statement is false regarding novation?
a. If the principal obligation is novated, accessory
obligation is also extinguished.
b. If the new obligation is void, the old obligation still
subsists.
c. If the old obligation is voidable, a valid novation
will cure the defect of the old obligation.
d. None of the above.
11. A contract which requires a certain form in order to be valid.
a. Consensual
b. Real
c. Formal
d. None of the above
12. Which of the following is a real contract?
a. Contract of marriage
b. Contract of bailment
c. Real estate mortgage
d. None of the above
13. Which of the following statements is not correct?
a. Acceptance may also be implied.
b. When one party accepts the offer and states that
he/she has accepted the offer against his/her
better judgment, such acceptance is valid.
 ACREV 424. – MIDTERM MOCKBOARD EXAMINATION
April 14, 2023
c. Acceptance through letter or telegram binds the
offeror from the time said acceptance has been
sent to the offeror.
d. None of the above.
14. Statement 1: Unless it appears otherwise, business
advertisements of things for sale are not definite offers, but
mere invitations to make an offer.
Statement 2: The advertiser is bound to accept the highest
or lowest bidder, unless the contrary appears.
a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is true
15. The contracting parties may establish such stipulations,
clauses, terms and conditions as they may deem
convenient provided they are not contrary to law, morals,
good customs, public order or public policy. This is known
as the principle of:
A. liberty of contract.
B. mutuality of contract.
C. relativity of contract.
D. obligatory force of contract.
16. In the contract of sale in a hardware store it was stipulated
that the seller shall not open or have any interest directly or
indirectly in any hardware store for a period of one year
either in his own name or in the name of another or have
connection with or be employed in any hardware store for a
period of one year or within three kilometers from Barangay
Ginebra, San Miguel, Bulacan. Are these
stipulations/restrictions upon the seller valid?
A. No, the agreement is contrary to public policy as
the seller is deprived of a means of livelihood.
B. No, the stipulations are in restraint of trade.
C. Yes, the restrictions imposed are only on a limited
sale.
D. Yes, as long as the agreement is made in writing.
17. Where there is concurrence of offer and acceptance, there
is
A. Payment
B. Consignation
C. Consent
D. Tender of payment
18. A contract with a cause distinct from the selling price itself
A. Lesion
B. Cession
C. Dation
D. Option
19. A sold his land to B. The sale was made orally. B paid the
agreed price. B wanted to have the sale registered but he
needs a public instrument.
A. B may sue A for the return of his money as no one
shall be unjustly enriched at the expense of
another.
B. B cannot demand the return of the purchase price
because the sale is unenforceable.
C. B may compel A to execute the public instrument
because the sale is valid.
D. B cannot compel A to execute the public
instrument because the sale was not in writing in
the first place.
20. Upon the happening of the suspensive condition in
unilateral obligations, who is entitled to the FRUITS of the
object during the pendency of the condition?
Atty. Rosemarie Pitan-Areno |SAINT LOUIS UNIVERSITY
2
a. Debtor
b. Creditor
c. Both debtor and creditor
d. The fruits are deemed mutually compensated, thus
no need to deliver the fruits.
21. In which of the following instances is demand from the
creditor not needed so that debtor will incur delay?
a. When a partner fails to deliver his contribution on
the period stipulated.
b. In a contract of sale, when the purchaser has
already paid the price and there is no stipulation
as to the date of delivery of the object by the
seller.
c. When debtor is obliged to deliver a specific object
to creditor but before the specified date of delivery,
debtor sold and delivered same object to a buyer
in good faith.
d. Any of the above
22. X agreed to give Y a 5% commission if the latter could sell
X’s land. Y found a buyer who decided to buy the land. To
evade payment of the commission, X himself sold his land
to the buyer at a lower price before Y had the chance to sell
to the same buyer. What is the effect of this on the
obligation of X to give Y his commission?
a. Since the condition was not fulfilled, X is not liable
to pay Y his commission.
b. Since the condition was not fulfilled, X is not liable
to pay Y his commission but is liable to damages
instead.
c. Since the condition is deemed fulfilled, X shall pay
Y his commission.
d. None of the above
23. The following are rules regarding payment made by a third
person who has NO INTEREST in the debtor’s obligation.
Which is not correct?
a. If the debtor gave his consent to the payment by
the third person, the obligation of debtor is
extinguished and the third person may later
recover his payment from the debtor.
b. The third person who has paid with the consent of
the debtor may be subrogated into the rights of the
creditor.
c. If the debtor has no knowledge or did not give his
consent to such payment, the obligation is
extinguished. If later, he wants to seek
reimbursement from debtor, he could only ask up
to the extent that debtor has been benefited by his
payment.
d. None of the above.
24. A owes B P2,000. With 14% interest. B owes C P280.00. A,
B & C later agreed that A will pay the interest of P280.00 to
C. What form of extinguishment of obligation is present?
a. Novation
b. Payment
c. Set-off
d. Confusion
25. A shipped a cargo in B’s vessel. B contracted with C
whereby the latter will unload the cargo from the vessel. In
the process of unloading, the cargo of A sustained
damages. In here, A can sue B, not C. This illustrates
what principle?
a. Force of law of contract
b. Mutuality of contract
c. Relativity of contract
 ACREV 424. – MIDTERM MOCKBOARD EXAMINATION
April 14, 2023
d. Liberty to contract
26. Which of the following is not a real contract?
a. Mutuum
b. Commodatum
c. Deposit
d. None of the above
27. On August 1, Seller, while in Baguio City, offered for sale
his lot located in Pangasinan to Buyer, who received the
offer in Manila. Buyer prepared his acceptance letter and
sent it to Seller via email on September 1. Seller opened
his mail on October 1. Assuming there had been a
perfected contract, in which place was the contract
considered to have been made?
a. Pangasinan
b. Manila
c. Baguio City
d. Either (a) or (c)
28. Requirements of fraud to vitiate consent, except:
a. Must have moved one of the contracting parties to
enter into the contract.
b. Must be serious.
c. Not employed by both parties.
d. May occur after the perfection of the contract.
29. Which of the following is a void contract?
a. Where one party connives with a third person and
with fraud induce the other party to enter into the
contract.
b. Berto, a minor, enters into a contract with Carding,
another minor and drug addict, for the purchase of
a .5 gram shabu from the latter. Aling Nena,
Berto’s mother, represented Berto in the deal.
c. Those undertaken to defraud creditors where the
latter has no other means to collect.
d. None of the above.
30. Which of the following contracts may not be assailed by
third persons?
a. Void
b. Rescissible
c. Unenforceable
d. None of the above
31. The following sales are void, except:
a. Sale of disposable lands in the Philippines to an
alien.
b. Sale executed by debtor on his mortgaged
property in favor of his creditor as payment of his
debt.
c. Sale of expired goods.
d. None of the above
32. What is the form of a contract of sale?
a. It must be in writing to be valid
b. It must be in writing to be enforceable
nevertheless, a verbal sale is valid.
c. It must be in a public instrument if the object is real
property
d. It is verbal
33. It may be defined as a bilateral contract whereby the
prospective seller, while expressly reserving the ownership
of the subject property despite delivery thereof to the
prospective buyer, binds himself to sell the said property
exclusively to the prospective buyer upon fulfillment of the
condition agreed upon, that is, full payment of the purchase
price.
a. Absolute contract of sale
b. Conditional sale
Atty. Rosemarie Pitan-Areno |SAINT LOUIS UNIVERSITY
3
c. Contract to sell
d. Any of the above
34. A Seller sold to a Buyer a piece of jewelry at a price of
P20,000. The contract provides that the Buyer will pay
Seller a microwave oven worth P5,000. What is the nature
of the contract?
a. Sale
b. Partly sale and partly barter
c. Barter
d. Commodatum
35. How is auction sale perfected?
a. By making the highest bid
b. By making the lowest bid
c. When the auctioneer announces its perfection
d. Any of the above
36. A entered into a contract of sale of his car to B for a price of
P50,000. The terms are: “Upon payment of P20,000, A
shall deliver the car and the balance to be paid after one
month. B also executed a chattel mortgage on the car to
secure the payment of the balance. B defaulted in the
payment of the balance, therefore A foreclosed the
mortgage. The proceeds realized in the foreclosure sale
were not sufficient to pay the entire balance.
I. A can still recover the deficiency.
II. A cannot recover the deficiency because the law
prohibits him from doing so.
a. First statement is true, second statement is
false.
b. First statement is false, second statement is
true.
c. Both statements are true.
d. Both statements are false
37. What are the requirements to be complied with by the seller
who wishes to cancel a sale under the Maceda Law?
a. Notice of his intention to cancel through a notarial
act
b. Lapse of 30 days from the receipt by the buyer of
the notice
c. Payment by the seller of the cash surrender value
d. All of the foregoing requirements
38. In a contract of sale, who is entitled to the fruits of the thing
sold after perfection but before delivery?
a. The seller being the owner because there is no
delivery yet.
b. The buyer as expressly provided for by the law on
sales.
c. The buyer if the parties agree
d. The seller if the parties agree
39. The unpaid seller of goods loses his lien thereon:
a. When he delivers the goods to a carrier
b. When he delivers the goods to a carrier for
transmission to the buyer and without reserving
ownership in the goods.
c. When the buyer has not yet lawfully obtained
possession of the goods.
d. None of the above
40. Debtor delivered the title of his lot to Creditor as security of
his obligation. What contract was entered into?
a. Loan
b. Pledge
c. Real estate mortgage
d. Chattel mortgage
 ACREV 424. – MIDTERM MOCKBOARD EXAMINATION 4
April 14, 2023

41. Is possession or delivery to the creditor required in a real b. Mortgage

estate mortgage? c. Security interest
a. Yes because the immovable property is the d. Security agreement
security of the principal obligation. 47. A security interest is created by a-
b. No because the right attaches to the property and a. Security agreement which may be verbal or in
so it follows the property. writing
c. No as long as it must be registered to be valid. b. Security agreement which must be in writing and
d. B and C signed by the parties
42. This is a stipulation in pledge or mortgage providing that the c. Delivery of the security
ownership of the thing given as security will pass to the d. Any of the above
pledgee or mortgagee upon default of the debtor (automatic 48. A security interest covering a tangible property is perfected
appropriation): by-
A. Constitutum possessorium a. A security agreement and registration
B. Pactum commission b. A security agreement and possession
C. Pactum commissorium c. A security agreement and control
D. Pactum possessorium d. Either (a) or (b)
43. In order to bind third persons, a real estate mortgage- 49. Issuer orders his bank to make a stop payment of the check
A. Must be accompanied by an affidavit of good faith without any valid reason. The check would have been
and recorded with the Register of Deeds. dishonored for insufficiency of funds had it not been for the
B. Must be in a public instrument showing a stop payment order given by the issuer. In here, may the
description of the thing mortgaged and the date of issuer be held liable for violation of BP 22?
the mortgage. A. No, because there was a stop payment issued
C. It is sufficient that it be in writing, public or private. by the issuer.
D. Must be recorded in the Register of B. No, because the requirements on
Deeds/Property. presentation for payment of the check by the
44. D borrowed 3M from C. D mortgaged his parcel of land in payee are not complied with.
favor of C as security of his obligation. The mortgage was C. Yes, the situation is within the coverage of BP
made in a private instrument. After a while, D decided to 22.
sell the same parcel of land B and he informed the latter D. It depends.
that said property is subject to a mortgage between him and 50. Which of the following defenses may acquit individuals
C. The debt became due and demandable, D defaulted. charged with a violation of BP 22?
May C go against B to foreclose the mortgage? A. payment of the value of the dishonored check
a. Yes because of the relativity of contracts. within five banking days from receipt of the
b. Yes because even though B is not a contracting notice of dishonor;
party to the mortgage, he is still bound by his B. payment of the value of the check before filing
knowledge of it. of the criminal case in court;
c. No, B is not a party to the mortgage agreement C. failure to serve a written notice of dishonor of
and the same was not registered. the check to the issuer;
d. No, B became the owner and as such, he has the D. any of the foregoing
right to own, possess, and enjoy his new property. 51. Which of the following defenses may acquit individuals
45. Dante bought a car on installment basis where the seller charged with a violation of BP 22?
required Dante to mortgage the same car as security for A. novation or change in the underlying
any unpaid installments. Dante defaulted in his installment obligation of the parties before the filing of the
payments thus the seller foreclosed the mortgage and sold criminal case in court;
the car to the highest bidder. The proceeds turned out to B. a stop payment order pursuant to a valid
be insufficient to cover all unpaid installments. Which of the reason such as non-delivery of goods or
following is CORRECT? services;
a. Seller may go against Dante for deficiency C. knowledge by the payee that the check was
judgment. not supported by sufficient funds when the
b. Seller may go against Dante for the unpaid issuer issued the check;
installments. D. any of the foregoing
c. Seller may no longer proceed against Dante for 52. Identify a false statement:
any deficiency judgment. A. Issuance of a worthless check is a wrong in
d. Seller may rescind the sale and ask for damages itself.
against Dante. B. It is the non-payment of the underlying
46. It refers to a property right in collateral that secures obligation which is being punished under BP
payment or other performance of an obligation, regardless 22.
of whether the parties have denominated it as a security C. In order to liable for violation of BP 22, there
interest, and regardless of the type of asset, the status of must have been fraud employed by the issuer
the grantor or secured creditor, or the nature of the secured of the check.
obligation; including the right of a buyer of accounts D. All of the above
receivable and a lessor under an operating lease for not E. None of the above
less than one (1) year. 53. The following are the elements of violation of BP 22,
a. Pledge EXCEPT:

Atty. Rosemarie Pitan-Areno |SAINT LOUIS UNIVERSITY

 ACREV 424. – MIDTERM MOCKBOARD EXAMINATION 5
April 14, 2023

a. the making, drawing, and issuance of any check to c. Precautions

apply for account or for value; d. Any of the above
b. the knowledge of the maker, drawer, or issuer that 60. Shall refer to all demands of whatever nature or character
at the time of issue he does not have sufficient against the debtor or its property, whether for money or
funds in or credit with the drawee bank for the otherwise, liquidated or unliquidated, fixed or contingent,
payment of the check in full upon its presentment; matured or unmatured, disputed or undisputed
c. the subsequent dishonor of the check by the a. Administrative expenses
drawee bank for insufficiency of funds or creditor b. Affiliate
or dishonor for the same reason had not the c. Claim
drawer, without any valid cause, ordered the bank d. Complaint
to stop payment; 61. Shall refer to a natural or juridical person which has a claim
d. the notice of dishonor properly served; against the debtor that arose on or before the
e. none of the above commencement date
54. Which of the following distinguishes estafa from violation of a. Creditor
BP 22? b. Affiliate
a. There is fraud committed subsequent the issuance c. Obligor
of the check. d. Encumbered property
b. There is a pre-existing obligation prior issuance of 62. A sole proprietorship duly registered with the Department of
the check. Trade and Industry (DTI), a partnership duly registered with
c. The fraud is committed prior or simultaneous to the Securities and Exchange Commission (SEC), a
the issuance of the check. corporation duly organized and existing under Philippine
d. Fraud is not a requirement. laws, or an individual debtor who has become insolvent
55. It means any name or designation other than the true name a. Creditor
of a person, partnership, corporation or association which is b. Affiliate
used or signed in connection with his/its business- c. Debtor
a. Firm name d. Encumbered property
b. Business name 63. Shall refer to real or personal property of the debtor upon
c. Business style which a lien attaches
d. Any of the above a. Encumbered property
56. Whenever the implementing departments find, by their own b. Group of debtors
initiative or by petition of a consumer, that a consumer c. General Unsecured Creditor
product is found to be injurious, unsafe or dangerous, what d. Individual debtor
should they do about it? 64. Shall refer to the financial condition of a debtor that is
a. They shall, without the need for a notice and generally unable to pay or his liabilities as they fall due in
hearing, make the appropriate order for its recall, the ordinary course of business or has liabilities that are
prohibition or seizure from public sale or greater than its or his assets
distribution. a. Involuntary proceedings
b. They shall, after due notice and hearing, make the b. Insolvent
appropriate order for its recall, prohibition or c. Illiquid
seizure from public sale or distribution. d. Liabilities
c. They shall immediately make a recommendatory 65. Shall refer to proceedings initiated by creditors
report to be submitted to the Office of the a. Involuntary proceedings
Secretary of the DTI. b. Voluntary proceedings
d. They shall immediately order for the export of the c. Liquidation
products. d. Rehabilitation
57. Any consumer product offered for importation into the 66. Shall refer to the restoration of the debtor to a condition of
customs of the Philippine territory shall be refused successful operation and solvency, if it is shown that its
admission if such product- continuance of operation is economically feasible and its
a. fails to comply with an applicable consumer creditors can recover by way of the present value of
product quality and safety standard or rule payments projected in the plan, more if the debtor
b. is or has been determined to be injurious, unsafe continues as a going concern that if it is immediately
and dangerous liquidated
c. is substandard or has material defect a. Involuntary proceedings
d. any of the above b. Voluntary proceedings
58. Which of the following is an additional labeling requirement c. Liquidation
for food products? d. Rehabilitation
a. Correct and registered brand name 67. Shall refer to proceedings initiated by the debtor
b. Address of the manufacturer a. Involuntary proceedings
c. Expiry date b. Voluntary proceedings
d. None of the above c. Liquidation
59. Which of the following is an additional labeling requirement d. Rehabilitation
for cosmetic products? 68. Which asset of the insolvent is NOT excluded from
a. Expiry date insolvency proceedings?
b. Whether or not it may be an irritant a. family home

Atty. Rosemarie Pitan-Areno |SAINT LOUIS UNIVERSITY

 ACREV 424. – MIDTERM MOCKBOARD EXAMINATION
April 14, 2023
b. jewelry articles for personal use
c. household furniture and utensils necessary for
housekeeping
d. None of the above
69. The term DEBTOR under the Financial Rehabilitation and
Insolvency Act (FRIA) shall refer to, unless specifically
excluded by a provision of the Act - . . . except:
a. a sole proprietorship duly registered with the
Department of Trade and Industry (DTI),
b. a partnership duly registered with the Securities and
Exchange Commission (SEC),
c. a corporation duly organized and existing under
Philippine laws,
d. a bank, insurance company, pre-need company, and
national and local government agency or unit
e. an individual debtor who has become insolvent
70. Which of the following statements is incorrect?
a. The purpose of the Insolvency Law is to provide for an
orderly mechanism by which the assets of a solvent
debtor could be converted into money for distribution
among his creditors and thereby relieve the debtor
from the weight of his debts and permit him to start
anew free from such debts.
b. Suspension of Payments contemplates a state desired
by a debtor who, possessing sufficient property to
cover all his debts, foresees the impossibility of
meeting them when they fall due.
c. Insolvency contemplates a state where the debtor has
more obligations than assets.
d. None of the above.
71. What is the nature of the proceedings under the Financial
Rehabilitation and Insolvency Act (FRIA)?
a. In personam against the debtor
b. In rem against the properties of the debtor
c. Both in personam and in rem
d. Adversarial
72. What are the remedies available to the debtor under the
FRIA?
a. Suspension of payments
b. Rehabilitation
c. Liquidation
d. All of the above
73. Where the debtor has enough assets but foresees the
inability to pay his/its obligations when they fall due –
a. Technical insolvency
b. Constructive insolvency
c. Actual insolvency
d. Insolvency
74. Which of the following is excluded from the prohibitions
under the Philippine Competition Act?
a. Anti-competitive agreements
b. Abuse of dominant market position
c. Prohibited mergers and acquisitions
d. None of the above
75. The prohibitions under the Philippine Competition Act shall
be enforceable against any of the following, EXCEPT:
a. Any person or entity engaged in business in the
Philippines
b. Combinations or activities of workers
c. International trade
d. None of the above
Atty. Rosemarie Pitan-Areno |SAINT LOUIS UNIVERSITY
6
76. It occurs when businesses agree to fix prices at an auction
or manipulate bids, forcing buyers to select the higher-
priced “pre-selected” bid instead of the best price.
a. Price fixing
b. Bid rigging
c. Formation of cartel
d. Price manipulation
77. What is the effect of a merger agreement consummated in
violation of the requirements on mandatory notice to the
Philippine Competition Commission?
a. The merger shall be unenforceable
b. The merger shall be voidable
c. The merger shall be rescissible at the instance of the
Commission
d. The merger shall be void
78. It pertains to the computation of the aggregate value of the
assets in the Philippines and revenues from sales in, into,
or from the Philippines of the filing Ultimate Parent Entity
(“UPE”), including all entities that it controls, directly or
indirectly.
a. Size of the transaction
b. Size of party
c. Value of the transaction
d. Merger threshold
79. The correct reporting threshold under the Philippine
Competition Act effective 01 March 2023-
a. Value of the transaction exceeds 1 Billion pesos.
b. Size of party exceeds 7 Billion
c. Size of the transaction exceeds 50 Billion
d. None of the above
80. The Government Procurement Law covers the procurement
of the following, EXCEPT:
a. National and local government
b. GOCCs
c. Government departments, bureaus, agencies, and
offices
d. Universities and colleges
81. It refers to the budget for the contract duly approved by the
Head of the Procuring Entity, as provided for in the General
Appropriations Act and/or continuing appropriations, in the
National Government Agencies-
a. G-EPS
b. Competitive Bid
c. Approved Budget for the Contract
d. Procurement Budget
82. Prior to the issuance of the Invitation to Bid, what should
the Bids and Award Committee (BAC) do?
a. Conduct bid advertising
b. Conduct pre-procurement conference
c. Conduct pre-bid conference
d. Conduct eligibility check listing
83. When may a bidder modify or withdraw his bid?
a. Before the deadline for the receipt of the bids
b. Before the opening of the bids
c. During the pre-procurement conference
d. A bidder is not allowed to modify or withdraw his bid
84. The Bids of the short listed bidders shall be evaluated and
ranked using numerical ratings in accordance with the
evaluation criteria stated in the Bidding Documents. This
applies to-
a. Procurement for infrastructure projects
b. Procurement of goods
c. Procurement of consulting services
d. All of the above
 ACREV 424. – MIDTERM MOCKBOARD EXAMINATION
April 14, 2023
85. The following are rights of a partnership, except:
a. It can acquire or possess property in the name of
its managing partner
b. It can incur obligations
c. It can bring actions
d. It can be adjudged insolvent
86. A partnership with a capital of P1,000,000 was not
registered with the Securities and Exchange Commission.
The partnership is
a. Void
b. Unenforceable
c. Valid
d. Voidable
87. Which of the following stipulations is valid?
a. A stipulation excluding a capitalist partner from
profits.
b. A stipulation exempting a capitalist partner from
losses.
c. A stipulation exempting an industrial partner from
losses.
d. A stipulation excluding an industrial partner from
profits.
88. Which of the following will not cause the automatic
dissolution of a general partnership?
a. Death of a partner
b. Insolvency of a partner
c. When the partnership business becomes unlawful
d. Insanity of a partner
89. On April 1, 2017, A and B entered into a contract of
partnership for the purpose of buying and selling branded
bags, with the former as capitalist partner and the latter as
industrial partner. It was agreed that A shall contribute
P100,000 to the common fund on May 2, 2017. Upon the
arrival of the designated date, A failed to deliver the
contribution she promised. As a result
a. B should make a demand upon A for the delivery
of his contribution to render A in default
b. The contract of partnership becomes void because
A failed to give her contribution to the common
fund
c. B can compel A to deliver her contribution with
interest and damages without the necessity of
demand
d. The contract of partnership was never perfected
because there was no delivery of contributions by
the partners
90. A, B and C formed a limited partnership with A as general
partner, B as limited partner and C as industrial partner. A
and B contributed P50,000 each. The partnership failed and
after disposing all its assets to pay partnership debts, there
still remains a note payable in the sum of P15,000. Against
whom can the creditor demand payment of the note of
P15,000
a. Only A is liable to pay the P15,000 indebtedness
b. A and B are liable to pay P7,500 each
c. A and C are liable to pay P7,500 each
d. A, B and C are liable to pay P5,000 each
91. A, B, C and D are general partners contributing P20,000,
P30,000, P50,000 and industry respectively. At the time of
liquidation, the partnership is indebted to Y for P50,000, to
partner A for P30,000 and to partner B for P20,000. If the
assets of the partnership amount only to P20,000, which of
the following is correct?
Atty. Rosemarie Pitan-Areno |SAINT LOUIS UNIVERSITY
7
a. Y can collect P20,000 from the partnership and
from partners A, B and C at P10,000 each
b. After exhausting the assets of the partnership
amounting to P20,000, Y can collect from partners
A, B, C and D at P7,500 each
c. Y can collect P20,000 from the partnership and
P30,000 from either partners A or B or C or D
d. If Y succeeds in collecting the P30,000 from the
separate properties of the partners concerned,
partners A, B and C will be required to make
additional contribution
92. Type of partnership in which the partners enjoy practically
all the profits.
a. General partnership
b. Universal partnership
c. Limited partnership
d. De facto partnership
93. Alcantara, Beranda and Castoria are partners of ABC and
Company. If Daniela, a third person, allows her name to be
used in the firm name of the partnership as ABCD and
Company, then she becomes liable for being a
a. Dormant partner
b. Secret partner
c. Silent partner
d. Nominal partner
94. A, B and C formed a partnership with A and B as capitalist
partners and C as industrial partner. C engaged in a
business for himself without the express consent of the
capitalist partners. Which of the following remedies is best
for A and B?
a. Expel C from partnership
b. They may appropriate all the benefits which C may
have obtained in his separate business
c. Make C liable for damages
d. Expel C or appropriate all the benefits which C
may have obtained in his separate business, with
damages in either case.
95. Noel and Joseph are both capitalist partners with equal
contributions of P2 million each. They mutually agreed that
Noel will manage the partnership business and Joseph will
not share in the profits but will be exempt from losses. Their
agreement is
a. Valid because their agreement is binding on both
Noel and Joseph.
b. Invalid as to both partners but unenforceable to
third persons.
c. Joseph should share in the profits but not in the
losses.
d. Void because as capitalist partners both must
share in the profits and losses.
e. None of the above.
96. A limited partnership for a particular undertaking was
formed in 2020 by X as general partner and Y and Z as
limited partners. In 2021, X and Y got married. Did the
marriage dissolve or change the form of the partnership?
1st Answer: Yes, partnership is dissolved by marriage
because there is a change in equity and status among
the partners.
2nd Answer: No, because spouses can enter into a
universal partnership.
a. Both answers are correct.
b. 1st answer is wrong, 2nd answer is correct.
 ACREV 424. – MIDTERM MOCKBOARD EXAMINATION 8
April 14, 2023

c. Both answers are wrong.

d. 1st answer is correct, 2nd answer is wrong.
97. Which of the following may be a cause of involuntary
dissolution
a. Express will of any partner
b. Insolvency of any partner
c. Termination of the terms
d. Expulsion of any partner
98. Partner Jaworski has no knowledge that partner Distrito has
died on August 22, 2021. On August 24, 2021 Jaworski
closed a contract for P3 million with Atoy Co, a third person
who has no knowledge of Distrito’s death.
a. The contract between Jaworski and Atoy Co is
void because it was made after Distrito’s death.
b. The contract is binding between Jaworski and Atoy
Co only.
c. The partnership will be primarily liable to Atoy Co
and if there is a net contractual liability, partner
Jaworski and the estate of Distrito will be liable.
d. All of the above.
99. X, Y and Z are partners and contributed to the partnership
P40,000, P30,000 and services respectively. The
partnership was later liquidated and after payment of the
partnership indebtedness, only P20,000 worth of assets
remained. How much is the share of Z?
a. Zero
b. Equal to the share of x
c. Equal to the share of y
d. P6,000
100.A, B, and C are partners who contributed P100,000,
P50,000, and industry, respectively. On August 8, the
partners incurred a liability of P400,000. On September 8,
the partners admitted X to the partnership who contributed
P60,000. When the partnership debt fell due, only
P200,000 was paid as the partnership assets fell short to
pay the total amount due. Assuming all partners are
general partners, who should be personally liable for the
payment of the P200,000 balance?

A B C D
a. 50,000 50,000 50,000 50,000
b. 66,667 66,667 66,666 none
c. 95,238 47,619 none 57,143
d. 133,333 66,667 none None

-end of examination-

Atty. Rosemarie Pitan-Areno |SAINT LOUIS UNIVERSITY