1. Jazzy and James orally agreed to form a partnership.

Each contributed cash

and personal properties worth P10,000 to a common fund. But they did not
register the partnership with the SEC.
a. The Partnership is still valid
b. The partnership is void
c. The partnership is voidable
d. The partnership is unenforceable

2. A partnership which comprises all that the partners may acquire by their
work or industry during the existence of the partnership is:
a. Universal partnership of present property
b. Universal partnership of profits
c. Particular partnership
d. General Partnership

3. A stock which has been issued by a corporation as fully paid up when in fact
it is not, because it has been issued as bonus or otherwise, without any
consideration, at all, of for less that part or for property, labor or service at
an overvaluation.
a. Promotion stock
b. Treasury Stock
c. Watered Stock
d. Bonus Stock

4. Phil, the owner of a piece of residential land orally authorized Aero to sell the
land for P50,000 with 5% commission. Today Aero sold the land to Cesar.
One day later Phil sold the same land to Dario. Assuming that both buyers
are in good faith, who is the lawful owner?
a. Cesar, being the first buyer
b. Cesar, because Aero was given authority by Phil
c. Dario, because the sale made by Aero to Cesar is only voidable
d. Dario, because the sale between Aero and Cesar is void

5. A private corporation commences to have corporate existence and juridical

personality from the date:
a. The officers of the corporation are elected by the stockholders
b. The incorporators sign the articles of incorporation
c. The articles of incorporation and by-laws are presented to the SEC
d. The SEC issues a certificate of incorporation under its official seal.
6. Contracts between a corporation and third persons must be made by or
under the authority of its:
a. Board of Directors
b. Stockholders
c. President and Chief Operating Officer
d. General Manager

7. Rico transferred to Ken a parcel of land for the price of P1,000,000;

P300,000 to be paid in cash and for the difference, he will convey her car
worth P700,000. What kind of contract is this?
a. Partly sale, partly barter
b. Contract of Sale
c. Obligation to Sell
d. Barter

8. If the obligor binds himself to perform his obligation as soon as “he shall
have obtained a loan” from a certain bank, this obligation is:
a. With a term
b. Conditional
c. Suspensive
d. Resolutory

9. Today, Pete appointed Aloe his agent covered by general power to lease his
car to Zen for 6 months. The next day, Pete appointed Aldo with special
power to lease the same car to Zen for 5 months. On the third day, Pete
directly transacted business with Zen leasing the car for 2 months. What is
the effect of agency between the parties?
a. The appointment of Aloe is valid because it has got a prior date
b. The appointment of Aldo is the one valid because it is covered by a special
power
c. The agency of Aloe and Aldo are considered revoked because the principal
directly transacted with Zen
d. The agency of Aloe and Aldo are still binding and Pete is liable for damages
to Aloe and Aldo.

10. Paul delivered to Aldo 20,000 pieces of Capiz shells for the purpose of
selling them at P2 each. Out of the proceeds of the expected sale, Aldo is to
receive a 10% commission. After 5 days, however, Aldo sold all the items at
P2.50 each to Blade, but on 30-day credit. Under the situation
a. Aldo must pay P40,000 immediately
b. Aldo cannot be compelled to pay at all
c. Aldo must pay P50,000 immediately
d. Aldo must pay P40,000 after collection from Blade

11. How may number of votes of the BOD are required to change the
name of a corporation?
a. 2/3 vote of all members of the Board constituting a forum plus majority of
OCS
b. 2/3 vote of all present
c. Majority vote of all present constituting a quorum
d. Majority vote of the Board plus 2/3 of the OCS

12. One of the following statements is not true

a. A creditor is not bound to accept a check in satisfaction of his demand,
because a check even if good when offered, does not meet the requirement
of legal tender.
b. The obligation of a debtor who had agreed to pau in dollars in a foreign bill
of exchange, shall be discharged in Philippine currency measured at the
prevailing rates of exchange at the time the obligation was incurred
c. The Philippine peso bills when attempted to be exported, as when carried in
excess allowed by the BB regulation, may be deemed to have been taken
out of domestic circulation as legal tender and thus, treated as commodity
d. The purchasing power or value of money or currency depends upon, can
come into being, can be created or brought about by a law by the legislative
department of the Government.

13. Purely ultra vires acts of the officers of a corporation to invest

corporation funds in another business or corporation, ie., acts not contrary
to law, morals, public policy may be ratified by:
a. The stockholders holding 2/3 of the voting power
b. Majority vote of all members of the Board
c. The stockholders holding one half of the voting power
d. Majority vote of the board of director present

14. Jovy signed a promissory note in favor of Bhelle promising to pay

P10,000 30 days after sight. Who can sue on this note and enforce the
obligation?
a. Both of them
b. Only Jovy
c. Only Bhelle
d. Neither of them
15. Reluctantly and against her good sense of judgment, Jenny entered
into a contract for the delivery of 5 center tables to Ann for a price of
P15,000. Contract is:
a. Void
b. Voifable
c. Unenforceable
d. Valid

16. It takes place when the parties do not intend to be bound at all by
their agreement:
a. apparent contract
b. absolutely simulated contract
c. relatively simulate contract
d. deed of assignment

17. Rescission of contract can take place in this case:

a. When the things are the object of the contract are legally in the possession
of third persons who acted in bad faith
b. When he who demands rescission can return whatever he may be obliged to
restore.
c. When the party seeking rescission can perform only as to part and rescind to
remainder
d. When the seller cannot return the installment paid to him by buyer

18. When the characters of the creditor and the debtor are merged in one
and the same person, there is extinguishment of the obligation by:
a. Compensation
b. Merger of rights
c. Novation
d. Rescission

19. The process of intentionally deceiving others by producing the

appearance of a contract which is different from the true agreement is:
a. apparent contract
b. absolutely simulated contract
c. relatively simulate contract
d. deed of assignment

20. If a general partnership, whose partnership contract provides for

interest on partners' capital account balances, incurs a net loss, the interest
provision of the contract:
a. Must be enforced c. May be either enforced or disregarded
b. Must be disregarded d. Must be rescinded by the partners

21. A partner by estoppel:

a. Ostensible partner c. Dormant
b. Secret partner d. Nominal

22. X-cited Limited partnership has X, as general partner, Y, as limited

partner, and Z, as industrial partner contributing P150,000; P500,000; and
services respectively. The partnership failed and after disposing all its
assets to pay partnership debts there still remains an outstanding obligation
in the sum of P120,000. The liability of the partners to the creditor will be as
follows:
a. X = P120,000
b. X and Z = solidarily liable for P120,000
c. X = P40,00 Y= P40,000Z= P40,000
d. X = P60,00 Y= P0 Z= P60,000
D. the industrial partner is liable because a partner contributing industry in a
Limited partnership is liable as general partner although he has no right as
general partner.

23. Paolo contributed P50,000; Ronald contributed P75,000; and Paul

contributed P25,000. Jay is the industrial partner. There is no stipulation
regarding profits and losses. The partnership suffered a P300,000 loss. The
loss shall be shared by the partners as follows:
a. P100,000; P100,000; P100,000; and P0
b. P75,000; P75,000; P75,000; and P75,000
c. P100,000; P150,000; P50,000; and P0
d. P100,000; P100,000; P100,000; and P100,000

24. Which of the following is not correct?

a. Actual delivery of the thing or payment of the price is not required for the
perfection of sale.
b. A stipulation that even with the object is delivered to the buyer, ownership
will not pass until the price is fully paid.
c. A sale is consummated upon delivery of the thing and the payment of the
purchase price.
d. Sales through letters or telegrams are deemed perfected only when accepted
by the buyer and has been received by the seller.

25. A sold and delivered her diamond ring to B. it was agreed upon that
within 10 days B will state and fix the price. On the 10 th day B called up A by
 telephone and stated the price as P20,000 which A agreed. Is the sale
perfected?
a. No, at the time of the sale, the price was not fixed
b. Yes, at the time of the sale, the price was already known
c. Yes, the price stated and fixed by the buyer was accepted by the seller
d. No, the price was left to the discretion of one of the parties.

26. Which of the following statements regarding contract of pledge is not

correct?
a. A pledge cannot be constituted unless the thing pledged be placed in the
possession of the creditor.
b. Pledge is a real contract because it is perfected by delivery of the thing
pledged.
c. Pledge is an accessory contract because it needed a principal obligation to
exist.
d. A pledge cannot be constituted to secure the performance of a voidable or
unenforceable or even a natural obligation.

27. When the mortgage is due and remains unpaid, can the mortgagee
appropriate the mortgaged property?
a. No, the only right of the mortgagee/creditor is to foreclose the mortgage
b. Yes, if there is a stipulation in the mortgage contract allowing the
mortgagee/creditor to appropriate the property mortgaged
c. Both a and b are correct
d. Neither a and b are correct

28. The common property of a Universal Partnership shall be?

a. All the properties which shall belong to each of the partners after the
constitution of the Partnership
b. All the properties which belong to each of the partners at the time of the
constitution of the Partnership
c. All the properties which belong to each of the partners at the time of the
constitution of the Partnership as well as properties which may acquire
thereafter
d. All the profits that each partners may acquire during the partnership

29. X, Y and Z are partners and contributed to the Partnership P400,000,

P300,000 and services, respectively. The partnership was later liquidated
and after payment of the Partnership was later liquidated, after payment of
the Partnership indebtedness only P200,000 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. 60,000

30. 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

31. the following are ways of enforcing payments of unpaid subscription.

Which is the exception?
a. sale as public auction of delinquent stocks
b. denying delinquent stock cash dividend
c. filing a court action to recover unpaid subscription
d. denying delinquent stock the right to vote and be voted upon

32. May a director enter into a contract with another Corporation of which
he is also a partner?
a. No, if the vote of such director is not necessary for the approval of the
contract
b. Yes, If the presence of the concerned is not necessary to constitute quorum
and he does not participate in the board approval of the contract which is
deemed fair and reasonable under the circumstances.
c. Both a and b are correct
d. Neither a and b are correct

33. The following are corporate acts in which a stockholder of a

corporation shall have the right to dissent and demand payment of the fair
value of his shares except one:
a. In case of an amendment to the Articles of Incorporation which has the
effect of changing ore restricting the rights of any stockholder
b. In case of merger or consolidation
c. In case of sale, lease, mortgage or other disposal of all or substantially all of
the Corporate Assets
d. In case of incurring, creating or increasing bonded indebtedness

34. ABC are solidary creditors of X for P10,000. A makes a will giving the
P10,000 debt to X as a legacy. The obligation is extinguished by:
a. Confusion of debt
b. Novation of Debt
c. Remission of Debt
d. Compensation of Debt

35. Which of the following is not a special form of payment?

a. Cession
b. Application for payment
c. Consignation
d. Dacion in payment
e.

36. If Peter leads John to believe that Abe is his (Peter’s) agent, as a
matter of fact such is not true, and Abe acts on such misrepresentation,
there is
a. An implied agency
b. An agency by estoppel
c. An agency by necessity
d. An express agency by words spoken

37. Pablo appointed Arnold to sell to the former’s car for P300,000.
Arnold sold the car to Juan for P200,000 but Arnold acted in his own name.
After delivery Juan inspected the car and he found hidden defects in the car.
Can Juan file an action against Pablo even when Arnold acted in his own
name?
a. No, under “caveat emptor” let the buyer beware
b. Yes, because this is a contract involving property belonging to the principal
c. No, because Arnold acted in his own name not of the principal
d. No, because the contract of sale is already perfected

38. There shall be no reformation of contract in the following classes

except:
a. In testamentary wills
b. Simple donation interviews with no condition being imposed
c. When the real agreement is void
d. A contract of sale fraudulently made as a Contract of Lease

39. A, B, and C solidarily bound themselves to deliver to X a Honda

Motorcycle amounting P30,000. The obligation was not fulfilled through the
fault of A. Therefore X filed an action against C and the court awarded
P36,000 to X, which of the following situations is valid?
a. If C pays the P36,000, C can collect from A and B P13,000 each representing
their proportionate share in the value of the prestation.
b. X has to collect P12,000 each from A, B, and C to satisfy the Court’s award
of P36,000.
c. If C pays X P36,000, C can collect from B P10,000 and from A P16,000.
d. X cannot collect the whole amount of P36,000 from C.

e. If C pays X the P36,000, C can

collect from A P24,000 and B
P12,000. Later, B can ask for
reimbursement from AP12,000
40. Considered “mere acts of administration”, which an agent is authorized
to do if given an agency couched in “general term”. Which is the exception?
a. To sue for the collection of debts and to engage services of a counsel to
preserve the ownership and possession of the principal’s property
b. To give customary gifts for charity or to employees in the business managed
by the agent
c. Unregistered lease of real property to another person for one year
d. To waive any obligation gratuitously

41. Pedro appointed Arthur as his agent with general powers on January 1.
The next day, Xenon transacted business with Arthur. On January 5, Pedro
revoked the agency and published it in a newspaper publication. After 5
days, Xenon consummated another transaction with Arthur. Is the act of
Arthur binding against Pedro?
a. Yes, because Xenon is in good faith
b. No, because the agency is considered revoked and its publication is a
sufficient writing
c. No, because the power is general, there must also be a special power
d. Yes, because there was no special notice sent to Xenon

42. If an agent contracts in the name of his principal, exceeding the scope
of his authority, what would be the status and effect of the contract?
a. Unenforceable b. Void c. Voidable d. Valid
43. A special power to sell includes the power to
a. Mortgage c. Barter
b. Sell on credit d. Sell on cash basis

44. Payment made to a third person is valid to extinguish the obligation of

the debtor to the creditor in the following cases, except:
a. After payment to the creditor, the third person acquires the creditor’s right.
b. When the creditor ratifies the payment to the third person.
c. When through the creditor’s conduct, the debtor was led to believe that the
third person had authority to receive payment.
d. When the third person is subrogated to the rights of the creditor.

45. Nene, Rene and Jay solidarily bound themselves to deliver to Sam a
Honda motorcycle valued at P60,000. The obligation was not fulfilled through
the fault of Jay. Thereupon, Sam filed an action in court against Nene and
the court awarded P72,000 to Sam representing the value of the motorcycle
plus damages. Which of the following situation is valid?
a. If Nene pays Sam the P72,000, N can collect Rene and Jay P24,000 each
b. Sam has to collect P24,000 each from Nene, Rene and Jay to satisfy the
court’s award of P72,000
c. Nene can refuse to pay the penalty because it should be charged against
Jay, the guilty party
d. If Sam succeeds in collecting the P72,000 from Nene, Nene in turn can
collect from Rene P20,000 and from Jay P32,000

46. A gets a loan of P1,000,000 from B which becomes due on October 1,

2008 and mortgaged his house as security for the debt. On June 30, 2008,
the mortgaged house completely destroyed the fire through the fault of C. A
week later, B demanded payment from A. Is B’s demand valid?
a. No, the destruction of the house was not thru the fault of A.
b. No, the obligation is one with a definite period which is deemed intended for
the benefit of both the debtor and creditor
c. Yes, the debt becomes demandable unless A can give another security
equally satisfactory
d. Yes, the debt becomes demandable even if A can give another security
equally satisfactory

47. An obligation where various prestations are due but the performance
of all of them is required in order to extinguish the obligation is known as:
a. Alternative obligation c. Conjunctive obligation
b. Facultative obligation d. Simple obligation

48. Which of the following contacts is rescissible?

a. Contracts entered into during a hypnotic spell
b. Contracts entered into in a state of drunkenness
c. Contracts entered into to defraud creditors when the latter cannot collect the
claims due them
d. Contracts where both parties are incapable of giving consent

49. Which among the following contracts is void?

a. A contract of barter between S, insane, and B, 17 years old
b. A contract of sale where B, the buyer, twisted the arm of S, the seller, so
that S would sign the deed of sale
c. A contract of sale where B, the buyer, aimed a gun at the wife of S, so that
S would sign the deed of sale
d. A contract for the sale of a cow which is suffering from a contagious disease

50. A, B, C and D, joint debtors, are obliged to give V, W, X, Y and Z,

solidary creditors, P20,000.00
a. V may collect from B P20,000 c. V may collect from B P5,000
b. V may collect from B P4,000 d. V may collect from B P1,000

51. Which of the following contracts is enforceable even if not reduced in

writing?
a. Representation as to the credit of a third person.
b. Agreement for the sale of immovable property
c. Contract executed by one of the parties in a contract
d. Lease of immovable period longer than one year.

52. L, entered into a contract of lease with X. T, the clerk of L, typed the
document. Due to T’s negligence, the document made was that of sale
instead of lease.
a. The remedy is annulment
b. Parties may go to court for interpretation
c. Parties may enforce their right because it is enforceable
d. None of the above. (the remedy is reformation)

53. D is indebted to C in the sum of P10,000. For the purpose of avoiding

the claims of C, D donated all his properties worth the same amount to X.
a. The contract is absolutely simulated c. The contract is merely
voidable
b. The contract is rescissible d. The contract is void.

54. Statement No. 1: When the fulfillment of the suspensive or resolutory

condition depends upon the sole will of the debtor, the conditional obligation
shall be void.
 Statement No. 2: If the original obligation is subject to a suspensive or
resolutory condition and the contract is novated the new obligations shall be
under the same conditions unless otherwise stipulated.
a. Both are true c. No. 1 is true; No. 2 is false
b. Both are false d. No. 1 is false; No. 2 is true

55. Statement No. 1: “I will give you specific cars if you will not marry X
this year (2015). If by the end of 2015, both parties are alive and no
marriage has taken place, my obligation is extinguished.”
Statement No. 2: “I will give you P10,000 if you cannot make a dead man
alive. This is impossible condition obligation not demandable”.
a. Both are true c. No. 1 is true; No. 2 is false
b. Both are false d. No. 1 is false; No. 2 is true

56. A and B are debtors of C for P2,000,000. A’s consent was obtained by
C thru fraud.
a. C can collect the entire P2,000,000 from B
b. C can collect the entire P2,000,000 from B but the latter can recover from A
P1,000,000.
c. A is liable only to C for P1,000,000 because he can interpose his defense of
fraud.
d. B is liable to C for his share of P1,000,000.

57. Which of these is not a conditional obligation?

a. D is to pay C P1,000,000 if he finishes his LL.B. at the V.P. College of law.
b. D will pay C P500,000 as soon as his financial means will permit him to do
so.
c. D is to pay C P2,000,000 ten days after his 80th birthday.
d. D will pay C P1,000,000 twenty days after he passes the C.P.A. exams for
October 2010.

58. In the following cases, the debtor shall lose the benefit of the period –
choose the exception.
a. When after the contraction of the obligation the debtor becomes insolvent
and he cannot give collateral security or guaranty.
b. When the debtor fails to furnish the collateral securities.
c. When the collateral security is impaired whether through the debtor’s fault
or by fortuitous events.
d. When the debtor attempts to abscond.

59. A, B, & C obligated themselves to deliver to X a specific and

determinate car valued at P600,000. Due to the fault of A, the car was not
delivered to X causing the latter damages in the amount of P9,000.
a. By specific performance, X can compel B & C to deliver 1/3 each of the car
and H to pay damages.
b. The action of X is converted into one for damages where he held liable A, B
& C for P203,000 each.
c. The action of X is converted into one for damages where he can hold B & C
liable for P200,000 each and A for P209,000.
d. The action being solidary and indivisible only A can be held liable by X for
P609,000.

60. These are adjudicated in order that a right of the plaintiff, which has
been violated or invaded by the defendant, may be vindicated or recognized:
a. Moral damages c. Nominal damages
b. Temperate damages d. Actual damages

Art. 2197. Damages may be:

1) Actual or compensatory;
2) Moral damages include physical suffering, mental anguish, fright, serious
anxiety, besmirched reputation, wounded feelings, moral shock, social
humiliation, and similar injury. Though incapable of pecuniary computation,
moral damages may be recovered if they are the proximate result of the
defendant's wrongful act for omission.
3) Nominal damages are adjudicated in order that a right of the plaintiff, which
has been violated or invaded by the defendant, may be vindicated or
recognized, and not for the purpose of indemnifying the plaintiff for any loss
suffered by him.
4) Temperate or moderate damages, which are more than nominal but less
than compensatory damages, may be recovered when the court finds that
some pecuniary loss has been suffered but its amount cannot, from the
nature of the case, be provided with certainty.
5) Liquidated damages are those agreed upon by the parties to a contract, to
be paid in case of breach thereof.
6) Exemplary or corrective damages are imposed, by way of example or
correction for the public good, in addition to the moral, temperate, liquidated
or compensatory damages.

61. Pat appointed Alma orally as her agent to sell her car for P100,000.
Alma sold the car to Mina and acted in her name. If upon delivery the car
has hidden defects, is Pat liable?
a. No, because the contract of agency is void, it is orally entered into
b. Yes, because the thing belongs to the principal
c. No, because the agent acted in his name
d. No, because the contract is unenforceable, it is orally entered into

62. Agency is extinguished by any of the following causes, except by

a. Revocation of the principal
b. Withdrawal of the agent
c. Death of the agent or of the principal
d. Death of the agent and agency is coupled with an interest
63. These are diamond, ruby, emerald, sapphire, opal, amethyst, beryl,
topaz, and garnet that are used in jewelry making including those formerly
classified as semi-precious stones.
a. Precious metals
b. Precious stones
c. Precious gems
d. None of the above.

64. The Bank Secrecy Law (RA 1405) prohibits disclosing any information
about deposit records of an individual without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.

65. X works as a research computer engineer with the Institute of

Computer Technology, a government agency. When not busy with his work,
but during office hours, he developed a software program for law firms that
will allow efficient monitoring of the cases, which software program is not at
all related to his work. Assuming the program is patentable, who has the
right over the patent?
a. X;
b. Institute of Computer Technology;
c. Neither X nor the Institute of Computer Technology can claim patent right
over the invention;
d. X and the employer of X will jointly have the rights over the patent.

66. The "test of dominancy" in the Law on Trademarks, is a way to

determine whether there exists an infringement of a trademark by -
a. Determining if the use of the mark has been dominant in the market.
b. Focusing on the similarity of the prevalent features of the competing marks
which might create confusion.
c. Looking at the mark whether they are similar in size, form or color.
d. Looking at the mark whether there is one specific feature that is dominant.
67. A appointed S to be his agent to administer his farm. While A was in
world tour, S died leaving his son of legal age to take care of the farm until
A arrived. This is an example of agency created by:
a. Ratification
b. Estoppel
c. Operation
d. Consent of the Principal

68. One method of preventing money laundering is customer identification.

The following are the rules with regard to Customer Identification Except:
a. Covered institutions shall establish true identity of clients based on official
documents
b. Maintain a system of verifying true identity of clients
c. Anonymous accounts, those under fictitious names and similar accounts are
not prohibited
d. Peso and foreign currency non-checking numbered accounts are allowed.

69. I. The right to a patent belongs to the inventor only.

II. When 2 or more persons have jointly made an invention, the right to a
patent shall belong to them jointly.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

70. Statement 1: There is no delay if an obligation not to do

something.
Statement 2: Solutio indebiti and negotiorum gestio are implied
contracts.
a. true, true b. true, false c. false, true d. false, false

71. Statement 1: Consent of the parties is required in quasi-contract.

Statement 2: The creditor acquires real rights over the thing from the
time the obligation to deliver arises.
a. true, true b. true, false c. false, true d. false, false

72. The creditor has the right to the fruits of the thing from the time

a. The thing is delivered

 b. The fruits are delivered
c. The obligation to deliver the thing arises
d. The sale is perfected

73. A case where Contract of Sale must not necessarily in writing.

a. Sale of 100 piculs of sugar at P600 per picul when there is partial delivery
b. Sale where by its term cannot be performed within the year from the making
thereof
c. Sale of land
d. Sale at public auction

74. A and B are jointly liable to deliver a particular car valued at P200,000
to C on July 1, 2007. Which is correct?
a. The prestation is indivisible making the liability of A and B solidary
b. If on July 1, 2007, A is willing to deliver the car but B is not, C may enforce
the obligation against A
c. A is liable for a proportionate part of the obligation and will be liable also for
damages if B is not ready to comply with his obligation, even if A is willing to
deliver the car
d. The liability of A and B is joint and the damages may be assessed only
against the debtor who violated the obligation

75. Whoever pays for another without the knowledge or against the will of
the debtor
a. May demand from the debtor what he has paid
b. May not recover anything from the debtor
c. May recover only insofar as the payment has benefited the debtor
d. May recover from the debtor what he has paid plus damages

76. A obliged himself to pay B P1,000,000 as soon as possible. Three

months later, B demanded payment from A but the latter refuses to pay. B
can
a. File an action in court compelling A to pay the obligation
b. Consider the obligation void because the phrase as soon as possible is
indeterminable
c. Go to court so that the court will fix the date of payment
d. Ask for damages because three months is considered too long for “as soon
as possible.”

77. The contract is not perfected until delivery. This is an attribute of?
a. Consensual contract c. Solemn contract
b. Real contract d. Formal contract
78. Which of the following transactions or contracts involving the sale or
financing of real estate on installment payments is not covered by Maceda
law:
a. Residential c. Apartment
b. Condominium d. Commercial Building

79. A contract of sale is not a

a. Principal contract c. Consensual contract
b. Nominate contract d. Real contract

80. A with violence in her eyes intimidated her husband B to sell his
exclusive property to her. The contract of sale is
a. Rescissible c. Unenforceable
b. Voidable d. Void

81. One of the following characteristics of dacion en pago is also a

characteristic of a contract of sale. Which is it?
a. There is a pre-existing credit
b. Obligations are extinguished
c. There is less freedom in fixing the price
d. Ownership of the object transferred to the other party

82. Three of the following instances will render an offer ineffective before
acceptance is conveyed. Which one will not?
a. Civil interdiction of either party c. Insanity of either party
b. Insolvency of either party d. Intoxication of either party

83. It is an affirmation of fact or any promise by the seller relating to the

thing which has a natural tendency to induce the buyer to purchase the
same, relying on such promise or affirmation.
a. Condition c. Warranty
b. False representation d. Seller’s talk

84. What mode of extinguishing a contact of sale is affected when a

person is subrogated, upon the same terms and conditions stipulated in the
contract, in the place of one who acquires a thing by purchase or dation in
payment, or by any other transaction whereby ownership is transmitted by
onerous title
a. Compensation c. Legal redemption
b. Conventional redemption d. Novation
85. I. A joint account regardless of the conjunction used , shal be insured
separately from any individually owned deposit account.
 II. The aggregate of the interest of each co-owner over several joint
accounts, whether owned by the same or different combinations of
individuals, juridical persons or entities, shall likewise be subject to the
maximum insured deposit of P500,000.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
86. I. Whenever a bank is ordered closed by the Monetary Board, the PDIC
shall be designated as receiver and it shall proceed with the takeover and
liquidation of the closed bank.
II. The receiver is authorized to adopt and implement, w/o need of consent
of the stockholders, BOD, creditors or depositors of the closed bank, any or
a combination of the modes of liquidation.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

87. A sold to B the former’s horse for P5,000. No date is date is fixed by
the parties for the performance of their respective obligation. The obligation
of A is
a. To deliver the horse immediately as there is a perfected contract
b. To deliver the horse within a reasonable time of two months form the
contract date.
c. To deliver the horse upon payment by B of P5,000.
d. To rescind the contract as there is no time fixed for the delivery and
payment.

88. A offered to sell his lot to B for P100,000. In his offer to sell it was
stated that B is given 60 days to prepare the P100,000, and as soon as B is
ready with the money, A will execute a deed of sale. Before the end of 60
days, A informed that the price of the lot was increased to P120,000. May B
compel A to accept P100,000 offered previously by A and make him execute
the deed of sale?
a. Yes, because A is already estopped by his signed
b. No, for B never signified his acceptance of A’s offer
c. Yes, because there was actual meeting of minds of the parties
d. Answer not any of the above.
89. I. An applicant for membership shall be deemed a member after
approval of hos membership by the board of directors and shall exercise the
rights of member after having made such payments to the cooperative in
respect to membership or acquired interest in the cooperative as may be
prescribed in the bylaws.
II. in case membership is refused or denied by the board of directors, an
appeal may be made to the general assembly and the latter’s decision shall
be final.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
90. I. The death or insanity of a member in a primary cooperative, and the
insolvency or dissolution of a member in a secondary or tertiary cooperative
may be considered valid grounds for the termination of membership.
II. In case of death or insanity of an agrarian beneficiary- member of a
cooperative, the next-of-kin may assume the duties and responsibilities of
the original member.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

91. One of the following is not a characteristic of contract of partnership.

a. Real, in that the partners must deliver their contributions in order for the
partnership contract to be perfected
b. Principal, because it can stand by itself
c. Preparatory, because it a means by which other contracts will be entered
into
d. Onerous, because the parties contribute money, property, industry to the
common fund

92. A, B and C are capitalist partners, each contributed P10,000. After

exhausting the assets of the firm’s indebtedness amounts to P90,000. It was
stipulated that A would be exempted from liability. Which is correct?
a. A may recover his original investment of P10,000
b. The creditors may collect P30,000 each from A, B and C
c. A can recover P20,000 each from B and C should he be required to pay the
creditors
d. The creditors can recover P45,000 each from B and C
 93. I. A certificate of registration issued by the CDA under its official seal
shall be prima facie evidence that the cooperative therein mentioned is duly
registered unless it is proved that the registration thereof has been
cancelled.
II. Any provision or matter stated in the articles of cooperation and by laws
may be amended by 2/3 vote of all the members with voting rights, without
prejudice to the right of the dissenting members to exercise their right to
withdraw their membership.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

94. I. No merger or consolidation shall be valid unless approved by the 3,4

vote of all the members with voting rights, present and constituting a
quorum of each of the constituent cooperatives at separate general
assembly meetings. The dissenting members shall have no rights to
withdraw their membership.
II. The merger or consolidation shall be effective upon the issuance of the
certificate of merger or consolidation by the CDA.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

95. Where the law requires information to be presented or retained in its

original form, that requirement is met by an electronic data message or
electronic document if;
I. The integrity of the information from the time when it was first generated in
its final form, as an electronic date message or electronic document is shown
by evidence aliunde or otherwise;and
II. Where it is required that the information be presented, that the information
is capable of being displayed to the person to whom it is to be presented.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

96. A corporate doctrine which holds the stockholders are not personally
liable for corporate debts
a. Separate legal Entity
b. Piercing the veil of corporate fiction
c. Right of Succession
d. Trust Fund Doctrine
97. Statement 1: If a person obliged to do something fails to do it, the
same shall be executed at his cost.
Statement 2: Those who in the performance of their obligations are guilty of
fraud, negligence, or delay and those who in any manner contravene the
tenor thereof, are liable for damages.
a. true, true b. true, false c. false, true d. false, false

98. Statement 1: Responsibility arising from fraud is demandable in all

obligations. Any waiver of an action for fraud is void.
Statement 2: If the law or contract does not state the diligence which is to
be observed in the performance of an obligation, that which is expected of a
father of a good family shall be required.
a. true, true b. true, false c. false, true d. false, false

99. Statement 1: The receipt of a later installment of a debt without

reservation as to prior installments, shall give rise to a rebuttable
presumption that such installments have been paid.
Statement 2: If a taxpayer pays his income tax liability for the current year,
there is a presumption that tax liability for the previous year has been paid.
a. true, true b. true, false c. false, true d. false, false

100. With regard to the right as to the fruits of the thing, which is not
correct?
a. If the obligation is subject to a suspensive condition, the obligation to deliver
arises from the moment the condition happens.
b. If the obligation is subject to a suspensive period, the obligation to deliver
arises upon the expiration of the term or period.
c. If there is no condition or term for its fulfillment, the obligation to deliver
arises from the perfection of the contract or creation of the obligation.
d. If the obligation arises from a contract of sale, the vendor has a right to the
fruits of the thing from the time the obligation to deliver arises.