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1. Culpa aquiliana as distinguished from culpa contractual: a. Proof of due diligence in the selection and supervision of employees is not considered a defense. b. Proof of the contract and its breach is sufficient to warrant recovery. c. The negligent of the defendant is only an incident in the performance of obligation. d. The source of liability is the negligent act of the person causing damage to another. 2. A, B, and C executed a promissory note in favor of D, E, and F in the amount of 9,000. Can the creditors proceed against A for the payment of the entire loan? a. No, each creditor can only collect P3,000 from A. b. Yes, anyone of the creditors can collect the entire P9,000 from A. c. No, each of the creditors can only collect P1,000 from each of the debtors. d. Yes, because the obligation is presumed to be solidary. 3. In the preceding problem, suppose C is insolvent, can B and A be held liable for his share in the obligation? a. Yes, because the obligation is presumed to be joint and several. b. Yes, but A and B shall be liable proportionately. c. No, because of their joint liability and therefore the debts are distinct from one another. d. No, because only either of them can be held liable for the share of C. 4. Still in the preceding problem, suppose the obligation is mixed solidarity can one of the creditors demand payment of the whole debt from anyone of the debtors? a. No, because the debts are distinct and separate from one another. b. Yes, because it is as if there is only one obligation. c. Yes, provided all of them demand from all of the debtors. d. No, because despite solidarity, a debtor is liable only for his share. 5. Joint liability as distinguished from solidarity: a. Liability of the subject is indispensable. b. Refers to the creditors and/or debtors. c. May either be passive or active. d. Refers to the prestation which constitutes the object of the obligation. 6. Under the Negotiable Instruments Law, to be holder in due course, a person must have acquired the instrument before it is overdue. Does this apply to the payee to whom the maker issued an overdue note? a. Yes, because the payee is still considered a holder under the law. b. No, because issuance to the payee is not considered a holder under the law. c. Yes, because the law does not distinguished between payee and subsequent holder. d. No, because the payee is privy to the contract between himself and the maker. 7. When one of the parties has brought an action to enforce the contract, he cannot subsequently ask for its reformation. The injured party may seek rescission even after he has chosen the fulfillment of the obligation if the latter should become impossible. a. True, true b. True, false c. False, false d. False, true
8. The creditor has real right to the fruits of the thing from the time they have been delivered. The buyer acquires real right to the fruits of the thing from the perfection of the sale. a. True, true b. True, false c. False, true d. False, false
9. In a natural obligation, the creditor has the right to enforce the performance thereof it being based on positive law. Solutio indebiti and negotiorum gestio are quasi-contracts that give rise to civil obligations. a. False, false b. False, true c. True, true d. True, false
10. An oral sale of land made by its owner is unenforceable. Sale of land made by an agent without written authority from the owner thereof is void. a. False, false b. False, true c. True, true d. True, false
11. A contract as a general rule must be written to have force and effect as a valid agreement A formal or solemn contract is one that must be in writing to be valid a. True, true b. False, false c. False, true d. True, false
12. A contract of partnership where immovable are contributed must be in public instrument to be valid. A limited partnership must be SEC registered to be valid. a. False, true b. True, false c. False, false d. True, true
13. The principle of autonomy of contracts means that the contacting parties as a rule may agree upon any stipulation, clause, term and condition. Relativity of contracts means that contracts take effect not only between the parties but also their heirs and assigns. a. False, false b. True, true c. False, trued. True, false
14. Antichresis must be in writing and involves only immovables. In pledge and Recto Law there is no deficiency liability. a. False, false b. True, true c. False, trued. True, false
15. A contract entered into by a minor is void. A contract where the amount involved exceeds P500.00 must be in writing to be valid. a. True, true b. False, false c. False, trued. True, false
16. A de facto corporation is one which is not registered with the SEC. In corporation by estoppel, those who misrepresented themselves as forming a corporation are liable as general partners. a. False, false b. True, true c. False, true d. True, false
First statement is true. In quasi-delict there is no intention on the part of a person doing wrongful act or omission causing damage to another. a. Obligations derived from law are presumed except those found in the Civil code or in special laws. second is true. False. Negligence b. First is false statement. False. In tender of payment and consignation. true c. In obligation to do. In the obligation to deliver a thing. In dation in payment. To be a de jure corporation. specific performance of the debtor’s obligation is not available as a right of the creditor to demand from the obligor. Rescission c. a. c. Restitution 28.17. true b. he has personal right to demand delivery of the fruits 31. falsed. him. Both are true. . false c. Delay d. Which of the following is not an essential element of an obligation? a. c. a. second is true. b. True. a. c. the creditors do not become the owners but are authorized to sell the properties assigned to them. false c. Natural obligation b. First is true. a. Which if the following is demand necessary to make the debtor in delay in the performance of his obligation? a. Diligence of a father of a god family. False. True. Other quasi-contract d. true b. second is false. Which of the following is not a civil liability arising from delict? a. c. Fraud 34. Legal obligation 24. b. First is true. When the time of performance has been stipulated. False. true c. Moral obligation d. The creditor acquires a real right against the debtor from the time the thing should have been delivered. Which of the following is not a source of an obligation? a. If the obligation is solidary. The fruits of the thing shall pertain to the creditor from the time they should have been delivered to existing after the obligation to deliver the principal thing arises. True. False. Both are true. Second is true. When the law so proves. a. false b. Diligence of a good father of a family even if the law or the stipulation requires another standard of care. In quasi-contract there is no consent of the parties thus preventing a meeting of minds between them. a. Liability fro damages arising from fraud is demandable and there can be a waiver of an action for past fraud. Liability foe damages in the performance of an obligation arises from the following. true 22. True. condition and manner of performance. false 19. true d. Both are false d. Both are false. Reparation d. second is true d. First is false second is true c. Contracts c. Extraordinary diligence of a good father of a family c. b. it musty be existing in law and in fact unlike a de facto one which exists in fact but not in law. false b. Obligor b. This is the kind of diligence that the obligor must observe in the performance of his obligation to give something. False. Creditor 23. b. First is false. true d. False. Solutio indebiti b. First is true. false b. 33. True. d. This is a principal kind of quasi-contract arising out of payment by mistake or undue performance of an obligation a. the debtor has to deliver also the accessories and accessions if they have been mentioned. Damages e. true d. Both are true. False. A corporation can be a stockholder but not an incorporator. d. falsed. a. except: a. True. Both statement are false. that is. the creditor becomes the owner of the property ceded as payment of the debt. True. second is false. Law b. the refusal without valid reason of the creditor to accept the payment of the debtor will extinguish the obligation. First is true. false 20. Indemnification for consequential damages b. Negotiorum gestio c. Solidarity may exist although the debtors may not be bound by the same term. true c. Civil obligation c. First statement is false. a. Delicts d. The third person who paid the obligation without knowledge or against the will of the debtor is still entitled to reimbursement from the debtor to the extent of the latter’s benefit. False. It is indispensable for quasi-delict to exist that there is no pre-existing contractual relation between the parties. Both statement are false. Both statements are true b. Acts or omissions punished by law c. Quasi-delict 27. Efficient cause c. When the time of performance is of the essence. second is false 26. True. True. Both are false 29. Presentation d. 30. second is false. second is false. true 18. 32. b. The unpaid seller cannot recover the thing sold from an innocent purchaser for value. Both are true. d. There can be waiver of an action for future negligence but not fraud. a. first is false. a. When demand would be useless. d. Diligence of a good father of a family. it means there is mutual guaranty among the debtors and therefore the insolvency of one is shouldered by the others. True. false 21. In payment by cession. False. d. b. It is an obligation which is based on positive law gives a right to enforce its performance a. c. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. Quasi-contracts 25.
Potestative condition to be void must both be suspensive and dependent on the debtors will. X without the knowledge or against the will of D paid C P2M. unlawful. d. The performance of the obligation has become impossible. Send the debtor to jail for non-payment of his debt. c. Obligation of D has been extinguished. d. immoral conditions are not valid and not demandable except the obligations which depend upon them. suppose only D is demanding payment.5M c. a. second is false. c. a. X can claim damages from any one of the three for his proportionate part of liability because the obligation is indivisible. c. c. d. a. In which of the following is the debtor still liable despite the fortuitous event causing the loss of the thing? a. D cannot choose because among the prestations whereby he is alternatively bound. second is false. b. First is false. P 1M 46. First is true. Three of the following are the rights of the creditor against the debtor who fails to pay his debt. d. because the loss was due to fortuitous event. First statement is false. Both are true. Second is true. While his truck was traveling on the North expressway. Not presumed paid unless proven otherwise. 44. No. In alternative obligation the right of choice is always with the debtor. E and F P3M. Impossible. The nature of the obligation does not require the assumption of risk. Yes. b. The installment for the month of January is presumed paid. Second is false. c. First is true. second is false. because payment can be made to any of the solidary creditors. d. D may still choose which he shall deliver. b. to wit. d. In the preceding case. because there was no stipulation exempting him from loss in case of fortuitous event. 41. P . A obliged himself to deliver the cans of powdered milk of 8 from Pangasinan to Manila. In facultative obligation. Due to the fault of A. damages and interest in case of non-performance of the obligation. only one prestation is due but the creditor may be given the right of choice as to the prestation to be performed. No. b. Not a condition nor a period but rather is pure obligation and therefore is demandable at once. Can X get reimbursement from D? a. the car was lost. c. d. it was hi-jacked by a band of robbers who also took the cans of milk belonging to B. As a rule. the creditor may demand the payment of the penalty. Is A liable for the loss of the goods? a. 48. b. c. The installment for the month of January is disputably presumed paid. Presumed disputably that only the principal has been paid. P1M plus interest from the time of payment until reimbursement. Period which the court may fix. X can claim the same from any of the three. Both statements are true. d. In this case: a. 37. (Sgd) A. b. proof of actual damages suffered by the creditors is essential to enforce the penalty. B and C borrowed 3M fro D. Fist is true. E and F evidenced by a promissory note worded as follows. D bound himself to deliver either specific object 1 or object 2 to C. 43. X claim only from A the whole amount of damages other than the value of the car. because the law provides that payment shall be made to the creditor demanding payment. 45. Yes. D’s obligation to pay is subject to a: a. 47. A. The vessel failed to arrive due to some fortuitous event and without the fault of D. P1M only for that is the extent of benefit of D.5M d. because they were generic things and as they cannot be lost. second is true. 49. The thing lost is a specific thing. Attachment of the debtor’s properties or garnishment thereof. 39. because he was in possession of the same at the time of the loss and therefore presumed at fault. D owes C P1M. D borrowed a sum of money from C promising to pay after the arrival of the vessel ‘’Baliktaran’’ from Cebu. because payment proportionately can be made to any of the joint creditors of his share. D borrowed from C a sum of money with a stipulated rate of interest to be paid in three equal monthly installments from January to March. b. d. P3M b. Yes. c. only one is practicable. B and C “How much can D collect from A? a. Both are true. suppose the receipt does not mention the payment of the interest. second is true. Suspensive condition and therefore not demandable since the vessel did not arrive. Since it is solidary liabilities for damages. . d. The law of the stipulation of the parties to an obligation may provide that the rights acquired by virtue thereof are not transmissible. Subrogation to the rights of the debtor against third persons. it is: a. The installment for the month of March is also considered paid. d. only the value of the thing lost if he chooses the same. c. No. first is true. b. A. Both statements are false. b. d. In obligation with penal clause. When the law or the obligation expressly so provides. the effect is: a. b. c. except: a. second is true. C may choose which of the objects he wants delivered. If one of the objects is lost due to fortuitous event and without the fault of D. 42. Both are true. first is false. In this case. b. B and C bound themselves to deliver to X a specific car worth P3M. b. c. a. “I promise to pay D. Only A is liable for damages although B and C are liable for their respective shares in the obligation. Yes. c. b. No reimbursement because the payment was not proper being without the knowledge or against the will of D. Rights acquired in virtue of obligations are transmissible only if so stipulated by the parties. a. First statement is false. Prima facie presumed to have been paid. Rescission of contracts entered into by the debtor to defraud him. The installment for the month of January is conclusively presumed to have been paid. but in case payment is made to a creditor not demanding payment. Both are false.35. 40. d. In the preceding case. Conclusively presumed the interest has been also paid. 38. c. b. P2M by way of reimbursement from D to prevent unjust enrichment on the part of D at the expense of X. d. Both are false. only his share of the credit shall be extinguished. Resolutory condition and therefore extinguished upon the failure of the vessel to arrive. D paid an amount for which the latter issued a receipt stating that the payment is for the month of February. No. c. 36. Both are false. can A still pay any one of the creditors? a. P1.
First is false. d. Rescissible c. Compensation 53. c. except: a. Both are false. A cannot evade is obligation as seller to B. First is true. A can reject the offer of B unless he properly consigns with the court his payment for the land. c. Unenforceable d. B in turn gave S P 1. 58. d. the debtor/drawer shall be released to the extent of the loss. a. Minors. Expromision 57. Minors who represent themselves as of legal age to one in good faith. Negotiable instruments . 51. Assignment 65. b. Dation in payment b. That they may be unliquidated and demandable. except: a. Voidable 64. d. b. except: a. Tender of payment and consignation c. The following cannot give consent to a contract.00. Both are false statements. If the creditor receives a check as payment and it has been impaired through his fault. In the preceding case: There is quasi-contract with the obligation to reimburse the third person insofar as the payment has been beneficial to the debtor. except: a. second is false. The following are special forms of payment. In tender of payment and consignation the tender of payment by itself shall not extinguish the obligations. the debtor was led to believe that the third person had authority to receive payment. b. the latter may go after the mortgage. second is true. It the period is for the benefit of the debtor he can apply the payment on a debt although not yet due. Void b. Void ab initio because actually there is no consent. Contract of sale of the car with the P1. Contract of option with the P1. the creditors do not become owners of the properties of the debtor. c. That each one of the obligees be the principal creditor of the other and he be at the same the principal debtor of the other. second is false. c. 59. 61. except: a. Contract to sell of the car at B’s option. B personally went to the former with c ash in hand to buy the subject parcel of land. A advertised in the newspaper his parcel of land wanting to sell the same for P1M. Void b. second is false. Rescissible d. 52. except. Both are true. A defective contract where damage or lesion is essential is: a. In application of payment the creditor as a rule shall decide on what debt shall the payment be applied. First is false. A defective contract because it is prohibited by law is: a. Demented d. The following are still valid contracts except: a.50. When the third person is subrogated to the rights of the creditor. Motive of the parties d. When through the creditor’s conduct. In this case: a. Payment by cession d. a. a. second is true. First is true. S offered his car to B for P1M and giving the latter one week to decide. the creditor becomes owner of the thing alienated as payment while in payment by cession. The following even if not in public instrument are valid. Delegation b. Object certain which is the subject matter of the contract. binding and enforceable. Unenforceable only because the contract may be ratified. guaranty or penalty. Subrogation d.00 as option money c. 56. 000. Voidable as there is consent although vitiated or defective. c. Novation of a contract takes place in three of the following. When the creditor ratifies the payment to the third person. d. Rescissible b. 55. Contract to sell of the car at S’s option. b. 62. There is: a. A cannot anymore reject B as buyer of his land. the third person acquires the creditor’s right. Rescissible because of the damage caused to the person incapacitated. a. d. Rescissible 66. Insane persons c. b. Both are true. Voidable c. Payment made to a third person is valid to extinguish the obligation of the debtor to the creditor in the following cases. That they both consist in a sum of money or if consumable also of the same kind and quality as that stated. b. Consent of the contracting parties c. In this case. c. There is legal subrogation and therefore in case the debtor fails to reimburse the third person. The contract entered into by the persons who cannot give consent is a.000. Unenforceable b. d. Voidable d. A can still reject B as an offerer in the purchase of his land. Both are true. Cause of the obligation which is established b. 54. Void c. First statement is true. except: a. Three of the following are essential elements of a contract. b. Void d. Both statements are false b. A defective contract because it is entered into in the name of another without or in excess of authority or it is verbal is: a. except sale of necessaries in life. First is false. Legal compensation shall exist in the following cases. That both debts be due. c. second is true. Unenforceable c. Voidable c. 60. In dation in payment. Unenforceable 63. d. 000. d.00 as earnest money. b. After payment to the creditor.
68. d. b. The sale is: a. either by the owner or agent with written authority c. mortgage d. The sale is: a. On January 10 b. Void 74. Rescissible b. second is false d. an absolute deed of sale was executed and notarized. In this case: a. Rescissible b. Valid 79. 69. On January 15. On January 25 81. Valid 73. 2001. Both statements are false b. The time and place of delivery shall be at the time and place of payment of the price. S can demand payment only after he has delivered the car to B. sold P’s land in a public instrument. The contract is: a. First is false.b. A contract of sale of vain hope or expectancy is voidable at the option of the buyer and the action for annulment brought within the prescriptive period provided by law. Unenforceable d. Voidable c. it shall pertain still to the seller. the sale was registered with the Registry of Deeds. A. Voidable c. or subject to a contingency. Both are true c. In this case: a. First is true. S sold to B his car on January 10. the sale shall be void. Payment and delivery shall take place only after one week from sale. In the interpretation of contracts. The sale is: a. First is true. B took actual possession of the car? a. A sold B’s car in the name of B without authority to C. in excess of authority. On January 15. Both are false c. Void 78. b. On January 25. Voidable c. B may demand delivery of the car even before the expiration of the one week period agreed upon once he pays the price. a. S may seek payment of the price once he delivers the car. Unenforceable d. S sold to B his car with agreement that B will pay the price one week after the sale on January 10. S sold his car to B. S sold to B his land on January 10. pledge. b. Unenforceable d. either present or future except future inheritance. Partnership contract wherein immovables are contributed 67. With written authority from his principal. On January 20 d. c. agent of P. Void 75. The seller must be the owner of the property he sells but his ownership need not exist on perfection but upon delivery of the thing. On January 15 c. an absolute deed of sale was executed and notarized. On January 25. The contract of sale is: a. Voidable c. The sale is: a. c. second is true. Rescissible b. Rescissible b. B may demand within reasonable time from the sale the delivery of the car. A sold to B his dog with the agreement that delivery shall be after one week from safe and the payment of the price after two weeks from delivery. Void e. Void 80. 2001. Rescissible b. In reformation of instruments it is necessary that there is meeting of minds of the parties to the contract otherwise. The buyer may demand delivery first before payment of the price. b. Rescissible b. Rescissible b. A sold B’s car with authority to sell but sold it in his (A’s) name. First is false. B may demand delivery only after he has paid the price. d. c. Void 77. A with oral authority from P. Both statements are true b. The contract is: a. On January 15 c. Unenforceable d. 84. it shall pertain to the seller. Unenforceable d. t he sale was registered with the LTO. Void 76. Unenforceable d. Valid 71. Payments and delivery shall take place only after one week from the sale. 2001. The fruits after the sale but before delivery shall pertain to the buyer if so stipulated by the parties to the sale. c. S sold to B his car with the agreement to deliver the same one week after the sale on January 10. The seller may demand payment first before delivery of the thing sold. First is true. conditional. Unenforceable e. If produced before the sale. The sale of a mere hope or expectancy is deemed subject to the condition that the thing will come into existence. d. . Unenforceable d. entered into a contract in the name of P with X who knew of the lack of authority and P did not ratify the contract. a. Voidable c. Agency. or undivided interest in property. On January 10 b. Void e. Void d. Voidable c. Sale of land. Without authority from B. A contract of sale may be absolute. No agreement was made on the time and place of delivery and payment. Rescissible b. Unenforceable d. A sold B’s car in his (A’s) name to C without any authority from B. If the puppy shall exist before the actual delivery. The time and place of delivery and payment not having been agreed upon. The fruits that shall exist after delivery will only be the ones to pertain to the buyer. If the dog shall produce offspring it shall belong to: a. 85. the agent sold verbally the land of the principal. Unenforceable d. Voidable c. annulment of contract shall be the remedy if fraud. On January 20. Voidable c. A sold his land to B verbally. 2001. The sale a. c. Rescissible b. A sold the former’s land in B’s name. sold the latter’s house in writing. Both are false statements. On January 20. Without authority from B. least transmission of rights and interest a. Hence: a. 83. On January 20 d. S may demand within reasonable time from the sale the payment of the price from B. On January 25 82. Rescissible b. either suspensive or resolutory. Void 72. doubts on the incidental circumstances of onerous contracts shall be resolved in favor of greatest reciprocity of interest and if gratuitous. B took actual possession of the land by building a fence thereon. as agent of P with oral authority. A sold the former’s house in B’s name. accident mistake or inequitable conduct prevented the meeting of minds. second is false. Voidable c. The sale is: a. The sale is: a. When did B acquire ownership of the land? a. d. second is false d. Voidable c. second is true 70. A.
after approval. In ‘’sale or return”. express or implied. that S is to benefit from the transaction. d. Traditio symbolica 92. No. S sold to B a thing without knowledge that the thing suffered from a hidden defect. if it were waiver consciente. After the sale. Yes. Yes. S sold to B a thing with a waiver of warranty against eviction. Unenforceable b. in the absence of contrary stipulation. if so agreed upon. D sold the land to X without the consent of C. No perfected sale as there was no consent on the price. notwithstanding any stipulation to the contrary. No. Contract of sale 89. 86. if the seller was in bad faith at the time the waiver was made. There’s valid sale since the buyer was authorized to fix the price. because the seller was in good faith when he sold the animals. would the debtor/pledgor be liable for the deficiency? a. B ordered from S a pair of shoes of the kind and style of which S has gone out of stock. S deliver to B his car valued at P2M in consideration of B transferring to S his land worth P1M and the amount of P1M. c. because it was the fault of the buyer in buying a used car. the mortgage on the car was foreclosed. 94. a. First is false. Traditio constitum possession c. the buyer becomes owner of the thing upon delivery while if “on approval. 91. It is clear. d. c. b. In case of deficiency. 99. Yes. No. b. No.7M. Which of the following is not constructive delivery in sale? a. No. The purchaser retains for himself a part of the purchase price. d. Sale between husband and wife is void unless there is separation of property between them in the same way that universal partnership between them is also void. as agreed upon fixed the price at P2M. Yes. if he were aware of the hidden fault or defect. Fearing foreclosure of the mortgage due to his inability to pay the loan. c. second is true. The parties agreed on the waiver of the warranty by the buyer. unless there was prior consent of the mortgage. B. unless stipulated. There is: a. b. stipulation prohibiting the sale without the consent of the mortgagee shall be void.5M and deliver to S his land as consideration for the sale. suppose it was a pledge. First is false. No. thus resulting to inadequate price. b. the car broke down due to engine trouble requiring an overhaul of the engine. c. because animals unlike things easily can contact some illness. second is true d. Yes. c. Yes. Yes. provided the seller was in good faith in entering into the contract of waiver of warranty against eviction. because there was no waiver of warranty against hidden defect. No. Both are true statements. 96. There is: a. Sale. notwithstanding stipulation to the contrary. No. Is the sale valid? a. d. No. unless otherwise stipulated c. No. second is false 93. Voidable d. S sold to B his land valued at P1M only for the price of P. c. Is the seller still liable for breach of warranty? a. D mortgaged his parcel of land to C as security for a loan. c. although the land’s market value was P1. There was perfected sale. Yes. No. b. Yes. d. if so agreed upon by the parties. There is: a.5M. Thing is placed in the control and possession of buyer d. if so stipulated upon by the parties. and good faith is not a defense to avoid liability. is D liable for it? a. C foreclosed the chattel mortgage and sold the car at public auction. Is S still liable for breach of warranty against eviction? a. No. Yes. Contract of lease of service c. D mortgaged his car to C as security for a loan. Yes. Failing to pay the installments. Barter c. if it was waiver intencionada. Yes. d. c. Rescissible c. because the defect was not hidden but apparent upon inspection by B it being a second hand car. because the waiver refers only to liability for damages. Yes. The price of the sale usually adequate. Is the seller liable for breach of warranty against redhibitory defect of animals? a. provided the mortgagee was notified before the sale. d. b. b. Valid 90. because it would be unjust enrichment on the part of creditor. d. S sold to B his dog without knowledge that the animal was suffering from a disease at the time of the sale. 95. First is true. c. Innominate contract d. Was there sale? a. The sale is: a. unless agreed upon by the parties. Partly sale and partly barter. In which of the following is sale not presumed an equitable mortgage? a. Based on the preceding case. Barter b. b. trial or satisfaction”. fixed by buyer and accepted by the seller. Both statements are true b. Is S liable for breach of warranty against hidden defect? a. Contract of agency d. 98. if there was stipulation requiring prior consent . d. Yes. B bought from S a second hand motor vehicle which upon inspection by B had some mechanical troubles. c. therefore. No. because of the valid waiver of warranty. Voidable sale at the option of the buyer due to mistake in the fixing of the price. 97. Both are false c. d. b. Is B still liable for any deficiency if the seller fails to recover in the foreclosure sale? a. because the seller was in bad faith. even in the absence of stipulation 101. S offered his land to B with the understanding that the latter shall fix the price. but he must return the price to the buyer without damages. No. even if it was waiver intencionada. The vendor allows the extension of time to repurchase the thing sold. No. No. Innominate contract d. 100. Sale 87. Eviction took place subsequently. Yes. Contract for a piece of work b. b.b. d. Traditio longa manu b. A sold his car for the price of P2M to B who shall pay P. The vendor remains in possession of the thing sold. Failing in the payment of the loan. because it is only in case of pledge is the debtor not liable for any deficiency. Partly sale and partly barter 88. b. No. S sold to B a car on installment wherein the latter mortgaged the same car as security for the price.
Yes. B. 108. b. c. d. 104. A and B are partners in Ace partnership. expenses of the sale and necessary and useful expenses on the thing sold. d. b. A. unless the mortgagor is a co-debtor. When is the agent at fault the only one liable for damages even is solidarity has been stipulated? a. P authorized A to sell his products with 10% commission and 5% guarantee commission. No. b. B. and C-service. legal redemption applies only if the interest was alienated by onerous title to a third person. because legal redemption applies only in case of onerous alienation. b. B-P2M. B and the partnership are all liable solidarily to X. the creditors still have a claim for P. d. b. because of the guarantee commission given to him. For how much are the partners liable to the creditors for the partnership liability? a. 105. B. b. No. In three of the following cases. Both statements are false b. 111. C is not liable being an industrial partner who is exempt from losses. No. because registration with the SEC is essential for a partnership to be valid and acquire juridical personality. a minor. P is liable under the contract because it is enough that the principal is capacitated since he is the one entering into the contract. c. b. the agency is not revocable. There is a partnership because of the equal sharing of profits. except: a. Limited partner may not contribute service. Bilateral contract depends upon it. If two or more agents appointed by a single principal are jointly liable unless solidarity is stipulated. 114. because every contract of partnership having a capital of three thousand pesos or more in money or property must be in public instrument and registered with he SEC. Limited partner may not take part in the control of the business. Limited partner may not constitute his assignee as substituted limited partner. provided the mortgagor or pledgor in case of pledge is the absolute owner of the property mortgaged or pledged. but in proportion to his interest in the land as co-owner. b. d. No. While A was performing his duties as a partner in the conduct of the business. b. Yes. The principal did not authorize him to appoint a substitute. Yes. All of A. second is true c. 115. Only A and B are liable at 1/3 and 2/3. d. Partners A. No. Second is false. d. Yes. if he returns the guarantee commission d. c.3M. Who shall be liable to X and in what capacity? a. There is no stipulation as to the appointment of a substitute. B. No. Yes. 112. a. Is there a partnership? a. 116. P is not liable because the agent is a minor with whom X contracted. and C contributed: A-P1M. and C as partners in a partnership stipulated and mutually agreed that A shall not share in the profits and losses. P is liable provided the sale is in cash for P1M. In three of the following cases. A and B are co-owners of a parcel of land from which they derive profits in equal sharing being co-heirs in inheritance. c. Only A and B are liable equally to the creditors being capitalists. Partner is appointed manager in the articles of partnership and removal is without just cause. provided it is in writing and registered. because the law frowns upon co-ownership. c. first is true 107. No. c. Yes. After exhausting the partnership assets. the agent can appoint a substitute. P is not liable for the sale on installments since it is unenforceable because his agent acted beyond his powers.102. c. b. Decide. unless he was notified of the sale prior to its perfection b. P authorized A. There is no partnership because co-ownership by itself does not establish a partnership despite the sharing of profits. 113. A. 103. c. because he was not at fault in the collection. If the one at fault shall answer for all the damages. A and B are co-owners of a parcel of land. A donated his share to C. because public instrument is necessary only in case of contributions of immovables. If two or more principal appoint a single agent for a common transaction. A sold the said car to X on installments at a lesser price of P. A.9M. b. c. and C entered into an oral contract of partnership each contributing P1M each to the common fund plus other personal properties of the same amount and failed to register the partnership with the SEC. Both of them shall be liable always since solidarity was agreed upon. Yes. P appointed A and B as his agents for a common transaction and they agreed that the latter shall be solidarily liable to the former for damages in case of violations of their obligations as such. d. B. d. The principal authorized him to appoint a substitute. unless he enforced his right through court action. Can B redeem the said share from C? a. Both A and B shall be liable solidarily to X. If the other agent is not at fault. Is the agreement valid as among the partners only and not against third persons? a. because among the partners it is valid to exempt one from sharing in the profits and losses. c. Surname of a limited partner may not appear in the partnership name. because the law looks with disfavor at co-ownership. D owes C a sum of money with M as mortgagor of his land to secure the loan. There is partnership they being co-owners and co-possessors. c. Is A still liable for the purchase price? a. d. Yes. 106. Is the partnership valid? a. Yes. to sell his car for P1M in cash. c. because a partnership contract can always be oral. d. Yes. . P is now repudiating the contract with X on the ground that he is not bound since X contracted with a minor who exceeded his authority. and he is not entitled anymore to the commissions. a. A sold them to B who failed to pay despite the diligent efforts of in collecting. and C are liable pro rata to the creditors. Can C redeem the said share from B? a. Only the partnership shall be liable it being a juridical person separate and distinct from the partners. C are co-owners of a parcel of land. the mortgagor/pledgor must be the debtor himself. Yes. Is the mortgage valid even if the mortgagors not the debtor? a. c. Only A shall be liable for he is the only one at fault. respectively. If the one at fault acted in excess of authority. It is a means of fulfilling an obligation already contracted. 109. Both are true d.Which of the following is not a prohibition on a limited partner? a. No. No. d. except. a. the liability of the former shall be solidary. No. b. provided he pays B the price. A. A sold his share to B. First is false. There is no partnership since in partnership division of profits is not always necessary among partners. a third person. d. 110. he negligently ca used damage to X. The principal forbids the appointment of a substitute. It is coupled with interest common to the agent and principal.
Death. Directors b. d. The board then declared dividends computed on the basis of P5M representing profits and appreciation in value of its real estate. b. b. for how much. A partner shall debtor of the partnership if he fails to deliver his promised contribution and shall be delay from the time of a demand from the partnership. except: a. Special power of attorney is necessary in the following cases. They agreed to divide the profits and losses equally. b. Based on the preceding number. Not valid as against third persons or partnership creditors. a. civil interdiction or insolvency of a partner. 125. Not valid. Valid. 119. because the subscription has not been fully paid. No. to submit questions to arbitration. Based on the facts in the preceding number. Subsequently. At the annual meeting of the corporation for the election of five directors. F received ten (10) votes less than E. First is true. the corporation refuses to issue one corresponding to the 25% paid. c. First statement is false. Suppose in the preceding case. b. Is the dividend declaration valid? a. Valid if creditors do not object nor protest against the same. It has the powers. b. and E received the highest number of votes and thus proclaimed as elected. c. and G were nominated. An industrial partner shall not share in the losses and his share in profits shall be just and equitable under the circumstances. Just and equitable under the circumstances c. c. B contributed P1M. A partner who is liable to the partnership for damages due to his fault may claim compensation if through his extraordin ary efforts in other activities of the partnership unusual profits have been realized. because stock certificate can be issued for the paid portion of the subscription. Expulsion of a partner. To compromise. Private corporations have the following must be residents of the Philippines except: a. Can he vote all his subscribed shares? a. valid as long as third persons are not prejudiced. No. Yes. 128. c. d. None 124. c. It is an artificial being created by law. because of the denial of his right to stock certificate. A newly admitted partner shall be liable for the pre-existing obligations of the partnership at the time of his admission in favor of partnership creditors up to the extent of his capital contribution. C. c. d. Valid being based on profits and increments in the value of the corporate assets. second is false d. d. except a. D. Increase or decrease of capital stock c. It has the right of succession. c. c. Yes. d. First statement is false. In three of the following cases. To make such payment usually considered as acts of administration. and C contributed services. 120. first is true d. because shares although unpaid but not delinquent can be voted. Both are false statements. what will be the share of C in the profit? a. Not valid because only delinquent shares may be denied stock certificate. Both are true.1M 122. Is the refusal to issue a stock certificate valid? a. because his shares have become delinquent shares. Three of the following dissolves a partnership. b. The by-laws may provide that no officer of the corporation may be required to be a stockholder. b. D. first is false. Incorporators d. d. because of the insolvency of the corporation which also extinguished his obligation to pay the balance. except a. P. is C liable? a. The by-laws may provide that the holders of the majority of the outstanding capital stock shall elect all the members of the board. Second statement is false. attributes and properties expressly authorized by law or incident to its creation. Dissolution of the corporation d. Yes. Trustees c. A. X corporation posted a P1M profit in its real estate has appreciated in value to the tune of P4M. Election of directors c. B. Equal to the share of A and B. Both are true 118. C. A contribution P1M. b. because stock certificate can only be issued after full payment of the subscription. because an industrial partner is exempt from losses. Just and equitable under the circumstances c. A subscribed to 1. No. Not valid because dividends must come only from the profits. under the trust fund doctrine for the protection of creditors. c. d. 126. there was no agreement as to profit-loss sharing. Yes. c. can a validly refuse to pay the unpaid balance on his subscription now that the corporation has become insolvent? a. To bind the principal in a contract of partnership. d. the corporation has become insolvent and A now refuses to pay his unpaid balance on his subscription. Nothing. 129. P1M d. paying 25% thereof. c. Majority of the following must be residents of the Philippines except: a. a. Not valid because there was no 2/3 ratification by the outstanding capital stock. d. F. second statement is true b. 121. under the doctrine of piercing the veil of corporate fiction. Second statement true. Court to fix his share. E sold his shares to F. A and B alone shall shoulder the loss at C’s option. 127. Partners business has become unlawful. 131. Yes. Both statements are false. 123. Partnership business can only be carried on at a loss. 117. b. as regards the paid percentage of the subscription. In case of loss of P. Merger or consolidation 132. Valid as regards the unpaid percentage on the subscription. P1M d.b. second is true. Second is false. all shares have voting rights. Officers 130. b. Equal to the share of A and B b. Despite the demand by a for the issuance of stock certificate. d. It may be formed or created under special laws or charter.1M but with reimbursement from A and B equally. c. Who. what shall be his share in the loss? a. if any. Any other act of strict dominion.000 shares of stock of X Corporation and paid 25% of the said subscription. first is true. b.3M. P. Meanwhile.B. Both are true. between E and F has the right to attend as director? . No. A. A subscribed to 100 shares of X corporation. E. Both are false. Not valid stipulation exempting a partner from sharing profits and losses. a.
d. (Sgd) M c.000 preferred shares? a. without indorsing the note delivers the same to Y. Yes. Would X. F is the director because he has bought the shares of E. Yes. D. (Sgd) D to:W 143. c. By payment in due course by the accommodation. because X has waived his pre-emptive rights to the issuance of preferred shares when he subscribed to the common shares. c. Yes. 133.000 shares have pre-emptive right to the remaining 10. d. or after maturity in his own behalf. No. c. 147. D. 134. Reimburse yourself out of the house rentals of my house in Manila. Holds the instrument as if it were non-negotiable. Pay to the order of Pedro Cruz P1M (Sgd) Jose Santos To: A or B b. At its inception. (Sgd) A To: B or in his absence X.a. The note is dishonored in the hands of F. except: a.000 preferred shares. this is supreme: a. Free from defenses of prior parties among themselves. ABC corporation has an authorized capital stock of P1M divided into 50. b. Pay to C or his order P1M out of the rentals of my house in Manila. because M. Incorporated under a valid law b.000 common shares and 50. because the special indorsement of P has made the note to be payable to order and must be endorsed to negotiate. only 40. (Sgd) A To: B b. To have a quorum. No. The corporation has a nine-member board of directors. C. They must be natural persons b. c. because all stockholders have pre-emptive rights to all issues of shares of any class in proportion to their shareholdings. Attempt in good faith to organize c. Chairman of the Board of directors c. President b. majority of the stockholders d. 135. d. Which is not correct? a. E. That the holder took it in good faith and for value. Amendment of the articles of incorporation 137. Yes. Not less than five nor more than fifteen d. c. Both of them shall be directors. A makes payable to B or order.000 shares were subscribed. Pay to bearer C P1M. Yes. Investment of corporate funds in another business corporation b. Vote of majority of the outstanding capital stock b. Three d. as a maker. because he has waived this right when he subscribed to a part only of the issuance of shares. All of legal age 141. D. That the instrument is complete and regular upon its face. because M. E and G. I promise to pay to the order of the bearer P1M. d. b. Board of directors c. d. b. because pre-emptive rights do not apply to the issuance of unissued shares. He holds the instrument free from defects of title of prior parties. the corporation offered for subscription all the common shares. Yes. Later X. (Sgd) P”. because Y did not acquire title to the instrument due to lack of proper indosement. 2/3 of the stockholders 138. May Y proceed against M for the note? a. (Sgd) A To: B and X 146. Five c. (Sgd) M d. A director of a corporation may be removed by: a. The notice given by F to B operates to the benefit of C. and G. Recently. Pay to C P1M (Sgd) A To: B d. 142. who notifies B. That he had no knowledge of any fact which would impair the validity of the instrument or render it valueless. Actual use of corporate powers d. A holder in due course has the following rights. The negotiable instrument is not discharged: a. 144. b. would X also have pre-emptive right to the 50. at. However. The following are the indorsers of the note in the order of their indorsements: B. c. Stockholders d. b. c. Seven b. because pre-emptive right applies only to the issuance of unissued shares. By any other act which discharges a simple contract for the payment of money. That he became the holder of it before it was overdue and without notice that it had been previously dishonored if such was the fact. except: a. No. repeal or adoption by-laws c. the directors thought of raising additional capital and decided to offer to the public all the authorized shares at their market value. F (holder) and G(subsequent holder). The notice to C inures to the benefit of B. E. Dissolution of the corporation d. b. 2/3 of the outstanding capital stock 139. c. c. Amendment. d. Which of the following requires the approval of the majority of the outstanding capital stock? a. No. No. When the principal debtor becomes the holder thereof before.000 shares? a. Which of the following is not negotiable instrument? a. By the intentional cancellation of the instrument. d. an instrument originally payable to bearer remains to be payable to bearer despite special indorsement made thereon. Four 136. Enforce payments against all parties liable thereon. Pay to the order of C and reimburse yourself out of the rentals of my house in Manila. b. In the matter of management of the corporation. because pre-emptive rights do not apply to the issuance of unissued shares. because all stockholders have pre-emptive rights to all issues of shares of any class in proportion to their shareholdings. Based on the facts of the preceding number. except: a. E. No. d. E is the director because his term is one year until his successor is elected and qualified. Three of the following are requisites for the existence of de facto corporation. Two of the members sold their shares while two others are abroad. C. Three of the following are required for incorporators. The note is subsequently dishonored by M. Majority must be citizens of the Philippines . is absolutely liable to pay the instrument in the hands of any holder. The notice to C inures to the benefit of D. Existing in law and in fact 140. the stockholder of 4. Due to Bearer P1M or a BMW car worth P1M at his option. Three of the following are requisites to be a holder in due course. M makes a note payable to bearer and delivers the same to P who endorses it to X in this manner: “Payable to X. except: a. Which of the following is negotiable instrument? a. because pre-emptive right does not apply to unissued shares to be issued. the number required is: a. b. c. The notice to D inures to the benefit of E and G. Pay to the order of myself P1M. Neither of them shall be director. 145.
a. P9. but X wrote a letter to A demanding for payment of the entire debt. he cannot subsequently ask for its reformation. The source of liability is the defendant’s negligent act or omission itself. P1. 000 from A. 154. What are the rights. When one of the parties has brought an action to enforce the instrument. If a third persons pays an obligation. which he has paid. P9. When the parties so stipulate c. A passenger on a truck was hurt but in a criminal case against the driver. 151. Liability may be reduced by the courts c. The effect is to release the debtor for the net proceeds of the things ceded or assigned. The injured party may seek rescission.He subrogated to all of the rights of the creditor.000 d. False. b. Responsibility arising the there from is demandable 164. 163.000. c. suppose that C is insolvent. What is delivered by the debtor is merely a thing to be considered as the equivalent of a performance of the obligation. Using No. 149. the obligation is presumed to be solidary. the only money he then had. d. because the demand made by X covers the entire debt and will therefore inure to the benefit of the other creditors. The loss or deterioration of the thing intended as a substitute through the negligence of the obligor does not render him liable A person alternatively bound by different prestations shall completely perform one of them a. Wherever the thing might be at the moment the obligation was constituted. 153 and prescription sets in how much can Y collect from A? a. May the suit still prosper? . a.000 c. the debts are considered distinct from one another. Wherever the thing might be at the amount the obligation is to be fulfilled 161. The negligence of the defendant is merely an incident in the performance of the obligation.000 b. P-0- 159. False. P1.000 from A. Demand is not needed to put the debtor in default. 151. P10. 000 d. Culpa is distinguished from dolo a. Contract c. 154. P-0155. Only the second answer is correct. P3. each creditor can collect only P3. A source of obligation not arising from law a. No. d. d. a. Yes. The money was stolen while C’s possession. only either A and B but not both will be liable. a. Proof of the contract and of its breach is sufficient prima facie to warrant recovery. True. B’s 23 year old son. the debt shall be presumed to be divided into as many equal shares as there are debtors. but B refused to accept the payment. True. since the promissory note is silent with respect to the rights of the creditors. c. can A and B be held liable for his share in the obligation? a. d. c. Yes. each creditor can collect only P1. Can the creditors proceed against A alone for the payment of the entire debt. all the creditors should have made the demand.148. b. Yes. Using No. When time is of the essence d. 000 b. suppose that the obligation was about to prescribe. Payment by cession as distinguished from Dation in payment. 000 c. False. Solutio indebiti c. A offered B P10. P20. Refers to the prestation with constitutes the object of the obligation. true b. At the domicile of the debtor b. 000 d.2001. Using No.He can recover from the debtor the entire amount. b. At the domicile of the creditor c. The note is now due and demandable. which are available to him if he pays the obligation with the knowledge and consent of the debtor? First Answer. Using No. b. The property is alienated by the debtor to the creditor in satisfaction of a debt in money. The victim now sues the owner of the truck for culpa contractual. Indivisibility as distinguished from solidarity. A. True. There is deliberate intention to cause damage or prejudice d. Yes. d. a. 152. because the demand should have been made to all the debtors. True. b. Yes. b. No. 157. said driver was acquitted. 000 156. Yes. the character of the obligation remains. Plurality of subjects is indivisible. Proof of due diligence in the selection and supervision of employees is not available as a defense. Both answers are wrong c. true d. c. how much can X collect from A? a. When the obligation is converted into one of indemnity for damages because of breach. A thereafter met C. Waiver of an action to enforce liability may be waived b. Y and Z. No.000 to X. 162. 000 b. The debtor is not necessarily in a state of financial difficulty. 151. d. When demand would be useless b. There being no express stipulation and if the undertaking is to deliver a determinate thing. How much may B still recover from A? a. but A and B will be liable proportionately.000 which became due and payable last June 23. c. false 160.000 with the request that he turn the money over to B. 000 from A. the payment shall be made a. Only the first answer is correct. to whom he gave the 10. Culps aquiliana d. will this have the effect of interrupting the running of the period of prescription? a. either X. On that date. insofar as A is concerned but not with regard to B and C. Both answers are correct. Y or Z can collect P9. false c. Second Answer. Negotiorum gestio b. When the fixing of the time is the controlling motive for the establishment of the contract. false 158. even after he has chosen fulfillment if the latter should become impossible. d. Refers to the legal tie or vinculum. False. P3. false c. d. except a. c. 153. No. P15. true d. No. true b. P-0150. b. B and C executed a promissory note binding themselves to pay P9. A owes B P20. Culpa aquiliana as distinguished from culpa contractual a. No.
c. Accion reivindicatoria c. Expromison d. B may proceed against A for culpa contractual d. a jeepney driver driving recklessly caused serious physical injuries to his passenger B and pedestrian C. Yes. C may proceed against X’s employer and the source of liability is the quasi-delict committed by A or culpa aquiliana. Valid b. P 1. N can collect from R and J P24. Mutuality of contract b.a. Obligatoriness of contract 173. How much can C compel A to pay? a. d. Auto contract c. By this principle. When the obligation is to deliver the house located at 123 Recto. S filed an action in court against N and the court awarded P72. killed his passenger B and pedestrian C. The contract must bind both contracting parties. C may proceed against a for culpa criminal 181. With a term b. and this is a. c. With a resolutory condition 166.000.000 c. Freedom of contract c. When the obligation is to deliver a brand new Honda Str colored orange 4. No. As a result 1. 2003.000 each from N. The obligation is a. A owes B P11. Which of the following situation is valid? a. 182. 180.000. Voidable d.000 due on July 2. the debt becomes demandable even if A can give another security equally satisfactory. A stipulation in a contract of lease whereby the landlord can go to court to eject the tenant in case of failure of the latter to pay the rent agreed upon. Accion redhibitoria b.000 from N. the mortgaged house completely destroyed by fire thru the fault of C. Novation 177. Delegacion c. the guilty party.000 171.2003 B cannot pay C so B assigns to C her credit of P11. A contact in which a person literally contracts with himself is a.2003 and P4. d. Formal contracts d. With a suspensive condition b. Void c. Is Bs demand valid? a. which of the following is not correct? a. the debt becomes demandable unless A can give another security equally satisfactory. Freedom of contract c. R and J solidarily bound themselves to deliver to S a Honda motorcycle valued at P60. An action to impugn the acts of a debtor intended to defraud the creditor is a. B may proceed against A for culpa criminal c. No. d. 179. S has to collect P24. N in turn can collect from R P20. Accion pauliana 170. contracts take effect only upon the contracting parties. It presupposes not only that the obligor is able.000 c. A gets a loan of P1M from B which becomes due on October 1.000 due on July 10. c.000 b. C may proceed against X’s employer and the source of liability is the crime committed by A or culpa criminal. Adhesion contract b.000 each. this will constitute double jeopardy b. Unilateral contract c. The obligation was not fulfilled through the fault of J. it is sufficient for him to prove the existence of the contract of carriage and the injuries suffered. Real contract 174. 3. 4. Avenue. N can refuse to pay the penalty because it should be charged against J. Accion subrogatoria d. B may proceed against X’s employer and the source of liability is the crime committed by A or culpa criminal. On July 3. This obligation is demandable at once a. Tender of payment d. P5. 2003. Relativity of contract d. P11. the acquittal means that the guilt of the accused was not proven by proof beyond reasonable doubt c. Yes.000 due on July 3. On June 30. One is not a requisite needed in order that obligation shall be extinguished by loss or destruction of a thing due a. in the act of performing his obligation a. ready and willing but also more so. A contract whereby X promised to live as the common-law-wife of Y without the benefit of marriage in consideration of P1. There is novation of the obligation if 1. Yes.000 against A. Yes. With a period d. No. When the thing is lost before the debtor incurred delay 167. a bus driver driving negligently. When a third person assumes the payment of the obligation without the knowledge of the debtor but with the consent of the creditor. When my means permit me to do so d. Accessory contract d. Unenforceable 176. b.000. Manila b.000. If S succeeds in collecting the P72. This obligation is a. Obligation to sell 168. C may proceed against A for culpa aquiliana b. Relativity of contract d. P 9. B may proceed against X’s employer and the source of liability is the breach of contract of carriage or culpa contractual. If the obligation of the debtor is “I will pay you my debt after I have arrived from abroad”. 2003. 2. No the obligation is one with a definite period which is deemed intended for the benefit of both the debtor and creditor.000 d.000 to S representing the value of the motorcycle plus damages. X. An agreement whereby A is to render service as a servant to B without the compensation as long as A has not paid him debt. With a period in diem 178.000 and from J P32. Thereupon. With a suspensive condition c. Consensual contracts b. the destruction of the house was not thru the fault of A. The statement “Contracts shall be obligatory in whatever from they have been entered into provided all the requisites for their validity are present” refers to a. B owes C P11. B owes A P6. Promissory note b. If N pays S the P72.000 due on July 3. d. Solemn contracts 175. there is a.000. The following are void contracts. without the knowledge of A. their assigns or successors in interest a. provided he can prove the negligence of the driver. R and J to satisfy the court’s award of P72. Mutuality of contract b. 2003 C tries to collect from A the P11.000. When the thing is lost without the fault of the debtor 3.000. A week later. b. A stole the car of B. The period for payment is shortened from 5 years to 3 years. Later they entered into a contract whereby B would not prosecute A in consideration of P100. b. If the obligor binds himself to perform his obligation “as soon as he shall have obtained a loan” from a certain bank. A. Obligatoriness of contract 172. 169. When it depends on the happening of a specified event . As a result. N. Bill of exchange c. B demanded payment from A. 165. 2003 and mortgaged his house as security for the dept. On July 3. except a. its validity or compliance cannot be left to the will of one of them.2003. Subrogation b.
False. a. Marriage between first degree cousins. Sgd. Pay to B or order P40. without A’s consent. A. intimidated her husband B to sell his exclusive property to her. c.2. Later B negotiated the note to C. A.000 even if he is a holder in due course c. Primarily liable b. except a. Intervening parties d. d. The contract of sale is a. A issued a note payable to bearer. Real and personal defenses may be raised between a. M b. To B. 189. who is a holder in due course. C can enforce the note against A for P10. d.000 payable in pesos at the rate of exchange prevailing on August 14.000 in two equal installments. A wants to annul the contract on the ground of minority. The acceptance of the offer to sell constitute a binding contract of sale provided the option was supported by a sufficient consideration. A failed to deliver the commodities it had offered for sale.000 with the name of the payable bank. d. Subsequent paries c. A promises to pay B or order P10. A.000 and all costs. Sgd. d.000. 194. D. with violence in her eyes. Rescissible b.000 on or before September 14. It is without an unconditional promise or order to pay a sum certain in money . P10.000.000 for payment under contract of August 14. Contract of sale between two insane persons. I promise to pay B or order P10. A d. issued a promissory note payable to B or order for P10. and B to C. Which of the following is not correct? a. true b. To C Sgd A. c. 2002 196. To C Sgd. A has 4 years counted from the time he becomes of legal age to ask for annulment of the contract. True. 30 days after C passes the CPA board examinations. I promise to pay to order P10. 199. offered to sell to B 100 cartons of sardines at a specified price which was accepted by B and subsequently delivered his letter of acceptance. I promise to pay to the order of myself P10. Unenforceable d. P1M in 2000. C cannot enforce the note against A for P10.000. at age 16. Pay to the order of X. A promises to pay B P1. because a. False. charges and expenses including reasonable attorney’s fees. 2002 and charge the same to my account To C. Prima facie b. The contract of sale is a. the maker b. Which of the following is not negotiable? a. Duress in the absence of physical pressure c. true c. sold a parapheral property in her name to C.000 to ABC bank. b. Void 187. It is in favor of a specified person or not to order b. b. P1M in 2001 and P1M in 2002. P c. The acceptance of the offer only created an option to buy. M makes a negotiable promissory note for P10. Void 188. d. c. C can enforce the note against A only for P5. 2002 and the second on September 14. Pay to the order of the Commissioner of Internal Revenue P10. Subsequently. True. c. Final c. Yes. 193. Sgd. A promise to pay B or order P10. The note is stolen by P who inserts his name as payee and then indorses the note to A. Every negotiable instrument is presumed to have been issued for a valuable consideration.2002. 000 if he is not a holder in course. c. b. 30 days after demand. Subsidiary liable 186. the first payable on August 14.000 out of my deposit with you. In a blank indorsement. In 1999. No the acceptance of the installment payments amounted to ratification of the sale. D can enforce the note against B. It is an order to pay out of a particular fund c. then A to B. The absence of consideration distinct from the price makes the contract without any obligatory force.000 regardless of wether he is a holder in due course or not. B decided to sue A. D can enforce the note against A. A 195. A b. A promise to pay B P1. He delivers the note to B indorsed the note specially to C. b. C can enforce the note against B. D can enforce the note against C. Provision renders a note non-negotiable. Remote parties 185. b. Pay to the order of B P20. Will his action prosper? a. Solidarily liable b. The period for payment is extended from 3 years to 5 years. 191. then C negotiates the note by delivery to D. In 2004. Which is correct? a. This in not negotiable a.000 with 12% interest thereon.000 within 30 days after the death of C. A is allowed to ask for annulment of the contract only within 4 years from the perfection of the contract. Rescissible b. Y and Z. A promises to pay B P1. 198. B. 190. Yes.000 regardless of whether C is holder in due course or not b. 000 for 10 bottles of whisky sold by B to A. A c. This is a real defenses a. d. Contract of sale between a guardian and his ward. provided A was then acting in good faith when he sold the property. c. On maturity. Donation between husband and wife. Pay to the order of B P30. Absolute d. No. Fraud is inducement b. a.000 signed by A. The following are negotiable. Want of consideration c. Sgd.000 on or before August 14. d. A. A discovered that only 5 bottles of whisky are genuine. husband of A. Secondarily liable 184. In view of the shortage of the catch of sardines. b. 2002.000 on or before September 14. 000. A promises to pay to the order of B the sum of US $1. in his capacity as head of the family. B 192. Conclusive c. the indorser renders himself a. Voidable c. 2002. As a result a. A 197. Sgd. The acceptance of the offer to sell by showing the intention to buy for a price certain creates a bilateral contract to sell and buy. A sold his land for P4M payable at P1M in 1999. Drawer A directs drawee B to pay C or order P10. 2002 in payment of the purchase price of the merchandise I bought from him. C cannot enforce the note against a. Immediate parties b. This contract is without effect unless ratified a. Drawer A directs drawee B to pay C or order P10. Unenforceable d. A d. false d. false 183. A letter of credit is beyond the scope of the negotiable instrument law. Voidable c. Want of delivery of an incomplete instrument d. The presumption is a. c can enforce the note against A only for P5.
Does not specify the value given c. A delivered to B the following instrument “One month after date. No. Must own at least one share of stock. 207. 208. Could C recover from B? a. c. A may disregard the condition and make payment whether the condition is fulfilled or not. C presented it to A for payment and it was duly paid. where the instrument is in the hands of any holder. Later. Payable at a determinable future time c. Must continuously own at least one share during his term as director. Subject to a condition b. When due. If the drawer’s deposits is insufficient d.d. c. except a. his name renders himself liable to all subsequent holders as a. When the bank receives notice of the drawer’s death 215. Subsidiarily liable c. Remote parties 210. Yes. the instrument is not negotiable because it is neither payable to order or to bearer. National defense c. E has no right to collect from C because a person negotiating an instrument merely by delivery is liable only to the immediate transferee. Solidarily liable c. D delivers the note to E. d. Which of the following is the disadvantage of forming a corporation? a. b. a valid delivery thereof by all parties prior to him so as to make them liable to him is conclusively presumed. Yes. Payable on demand d. Majority of the directors are citizens of the Philippines. Which of the following is correct? a. Ownership of shares must be recorded in the books of the corporation 213. except a. hence B will be liable as an assignor of the instrument. Preparatory c. real and personal defenses may always be raised if a. A had no right to pay C and. The free and ready transferability of ownership b. b. a holder in due course. the SEC may compel the corporation to declare dividends. Innominate b. the existence of the entity is not affected by the personal vicissitudes of the individual stockholders. A can prove that he delivered the instrument to B for a special purpose only. It is not dated b. The indorser who simply signs. The instrument is a. If the drawer is insolvent c. Can A refuse to pay C on the ground that the note was originally delivered to B for a special purpose only? a. Sgd A” B indorsed the note in blank before maturity and delivered it to C for value. Absolute defense b. Bill of lading b. Omissions that do not effect the negotiability of an instrument. Conclusive whether holder in due course or for value. It contains an order to pay out of a particular fund rendering the instrument beyond the scope of the negotiable instrument law a. Prime-facie whether holder in due course or for value. Treasury warrant 202. otherwise B is discharged from liability. No. I promised to pay to B P10. otherwise it will be liable for a surtax on improperly accumulated surplus. The shareholders are not liable for the debts of the business c. No. A made a negotiable promissory note in favor of B who negotiated it to C under the following indorsements. d. The promissory note is not negotiable because of the condition imposed. Does not specify the place where it is drawn d. Gratiutous 216. Yes. which of the following is correct? a. C could not sue B and hold him liable as an indorser because the instrument is payable to a specified person. Because of the power of succession. A makes a negotiable note to bearer and delivers it to B for safe keeping. Equitable defense c. This is a personal defense a. C did not pass the CPA examination. delivery is presumed to have been made in favor of the holder. since as regards them. E becomes holder only if D will indorse the instrument. The following are qualifications of a corporate director. provided C to gives notice if dishonor to B. 205. Yes. A refused to pay and C sued B. Being payable to order. the endorsement will be considered as an assignment. A note reads “I promise to pay B or order P1. 30 days after B receives the proceeds of his loan from ABC bank Sgd A. c. A. c. b. Warehouse receipt 209. c. No. Clean bill of exchange c. Formal d. When the instrument is complete but undelivered. The drawee bank may not refuse to pay checks drawn against it a. b. Documentary Bill of Exchange b. Non-negotiable because the payment is indefinite 212. C in turn delivers the note to D without indorsement. . if C is a holder in due course. 206. The note is negotiated by B to C. Certificate of deposit d. Postal money order 201. Certificate of stock d. therefore can compelled to pay again. Immediate parties d. b. Conclusive if holder for value and prima facie if holder in due course. If there is a “ stop payment” issued by the drawer b. Primarily liable b. c. 000. Secondarily liable d. the note can be negotiable by indorsement and delivery. knowing that there is no such person by the name of B.If the surplus profits of the stock corporation reaches the level equal to its paid-up capital. Does not name the payee where the instrument is payable to order 203. Prima-facie if holder for value and conclusive if holder in due course. b. The instrument is not-negotiable because it is payable to the order of a non-existing person. makes out and signs a promissory note payable to B or order. First statement.000. It is not payable on demand or at a fixed or determinable future time 200. d. Which of the following is not negotiable a. Which of the following is the characteristic of partnership as a contract a. The subservience of minority stockholders to the wishes of the majority subject only to equitable restraints 214. Real defense d. The promissory note becomes negotiable because the condition was satisfied. A delivers the note to C. because B negotiated the note without authority. At maturity of the note. the presumption is a. There is no difference between a holder in due course and one who is not. “Pay to C after passing the CPA examination in October 1999”. d. Intervening parties b. d. d. d. Subsequent parties 211. 204.
Dacion en pago as distinguished from sale a. From the time C consents to the sale between D and T d. Both statements are false c. Both statements are true b. In this case a. The object exist and is specific c. First is false.000 per square meter o n condition that if the price is not paid on a particular date. On the particular date agreed upon. Majority vote of the Board of Directors plus the vote of a majority of the outstanding shares c. 2/3 of the stockholders present d. A contract as a rule must be in writing to be valid A taxpayer is not entitled to interest on the overpayment of tax subject of a refund because an obligation derived from law is not presumed. Second is false. Only the second statement is true 218. b. Within 6 months from delivery of the thing sold c. must be in a public instrument and registered with the SEC in order for the partnership to be able to maintain an action. 8 million c. Only the first statement is true d. 000.A partnership with a capital of 3. Tender of payment and consignation 228. ownership of the goods passes to the buyer. There is a greater degree of freedom in fixing the price 222. Both are false c. two or more positions may be held concurrently by the same person except that no one person shall act as President and chairman of the Board a. 221. a domestic corp. 2/3 votes of the directors plus a majority of the outstanding shares 229. 4 million d. B cannot anymore pay the price simply because the sale is cancelled due to his failure to pay on the stipulated date. Majority vote of the Board of Directors plus the vote of 2/3 of the outstanding shares d. Upon perfection of the contract b. in its own name against third party. the sale will considered automatically cancelled. The treasurer likewise reported an increase in the value of the land previously bought to be used as plant site from 3 million to 5 million. The contract of loan and antichresis a. Property dividend c. 2/3 of the outstanding capital stock 224. Within 40 days delivery of the thing sold b. wanted to declare dividends to its stockholders. Within 4 years from discovery of the fraud 227. Majority of the stockholders present c. Both statements are false c. Both null and void c. S and B agreed on the slae of a four hectare property at Macapagal Boulevard for the price of P15. Both statements are true. 3 million 219. A buyer may sue the seller for breach of warranty against hidden defects of things a. . even if that is the instruction of the principal. when will T acquire ownership of the same? c.000 and delivers to C his diamond ring by way of pledge. a. This is not a fundamental obligation of the agent a. Any director of a corporation of shares held by it in another corporation is a. if he knew it would result is a loss or damage to his principal. Dacion en pago c. A. second is true d. Majority vote of the board of Directors b. Upon the delivery of the goods c. S can validly refuse any subsequent offer to pay by B c. Sale of capital assets d.Second statement. Sale of treasury stock 223. The voting requirement needed in declaring cash or property dividend a. Application of payment b. To render an accounting of the transaction b. Both statements are true b.000 or more to money or property. but the loan is null and void. One million is being appropriated for the acquisition of the machineries to be bought 2 months from now.The arrival of the term of a partnership with a fixed term or period shall not dissolve the partnership if the partners conti nue with the business of the partnership but such partnership maybe terminated anytime dependent on the will of the continuing partners. Within 1 year from delivery of the things sold d. D borrowed from C P 1. a. but B never asked for a judicial cancellation nor made a notarial act of recission. Not to carry out the agency. The sale is cancelled as per agreement b. The treasurer reported a net income after tax of P4 million. Which of these is not a special from of payment? a. Upon expiration of seven days d.In a corporation. 9 million b. Are both valid b. A distribution by a corporation of shares held by it in another corporation is a. Second statement. The contract of antichresis is valid. Majority of the members of the board b. Only the second statement is true 217. B can still pay S the price d. Cession en pago d. What amount of dividend can be declared by the board? a. Stock dividend b. ABC. First statement. From the time T obtains actual possession of the diamond ring 226. B did not pay S. To subordinate his interest in favor of his principal if there is a conflict of interest c. To borrow if he is authorized to lend d. D is indebted to C in the amount of P200. first is true 225. 000 to secure the payment of which the former verbally agreed to deliver his 4 hectare agricultural land by way of antichresis and to pay 12% interest per annum. Upon acceptance by the buyer of the offer of the seller 220. 230. If D sells the same diamond ring to T. There is no pre-existing obligation d. The cause is the price b. Only the first statement is true d. The loan is valid but the antichresis is null and void d. After 3 years of operation. When the goods are delivered to the buyer on “sale or return” for a period of seven days.
b 86.b 202.d 171.d 204.c 20.a 135.d 138.d 146.a 112.b 44.b 123.d 219.c 77.d 7.d 51.b 175.b 215.b 9.d 80.b 184.a 218.a 105.a 150.c 225.c 23.c 17.c 4.d 36.c 58.a 143.d 212.c 11.b 131.c 76.d 157.b 164.c 197.d 90.d 47.c 39.b 33.d 125.b 176.d 182.a 192.d 37.d 206.e 79.c 29.d 179.a 121.c 126.c 38.a 96.a 69.d 122.c 78.a 172.b 177.c 54.d 144.b 103.c 188.b 18.b 10.d 87.a 229.a 63.a 64.c 168.d 155.c 113.d 110.a 85.a 84.c 213.a 30.b 107.a 174.d 180.b 15.d 119.b 166.d 40.b 178.a 32.d 61.a 41.d 124.b 205.c 195.d 75.c 167.c 117.c 186.d 70.d 224.a 95.d 89.b 60.b 190.b 81.a 160.b 114.c 210.d 133.d 42.d 130.b 26.c 12.b 14.a 91.b 137.d 13.b 5.d 187.1.b 149.c 152.e 71.d 142.b 102.a 200.e 73.a 198.b 28.d 145.b 211.c 31.d 53.d 159.b 227.d 163.b 220.c 92.d 25.c 19.b 104.a 68.c 43.d 6.b 34.c 169.d 109.b 154.c 72.c 3.c 148.c 106.d 62.c 191.b 222.d 199.c 156.b 35.c 74.a 101.d 170.d 94.d 67.b 111.b 127.a 65.c 221.a 93.a 132.b 82.b 189.b 16.a 8.a 98.c 209.d 46.a 27.d 203.a 66.a 228.a 108.d 185. d 2.d 57.194.c 161.b 223.a 128.a 100.a 49.b 88.b 50.a 207.d 55. c 165.b 217.d 116.a 216.a 83.b 162.b 196.b 147.c 56.d 201.d 208.d 129.b 183.b 136.d 139.a 52.a 120.a 158.d 115.c .a 151.b 193.b 181.c 226.a 21.d 45.d 214.a 134.b 118.a 22.c 173.b 59.a 97.d 48.c 230.b 24.d 140.c 153.d 141.d 99.
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