ACCTG 161 MIDTERM SUMMATIVE QUIZ INSTRUCTIONS: Write the capital letter of your choice on the first f irst page of your testbooklet. Avoid erasures.
1. Which of the following is not an essential element of an obligation? A. Obligor B. Efficient cause C. Presentation D. Creditor 2. A source of obligation not arising from law A. Negotiorum gestio B. Solutio indebiti C. Culpa aquiliana D. Contract 3. Which of the following is not a source of an obligation? A. Law B. Contracts C. Delicts D. Damages E. Quasi-contracts 4. It is an obligation, which is based on positive law gives a right to enforce its performance A. Natural obligation obligation B. Civil obligation C. Moral obligation D. Legal obligation 5. Liability for damages in the performance of an obligation arises from the following, except: A. Negligence Negligence B. Acts or omission punished by law C. Delay D. Fraud 6. An action to impugn the acts of a debtor intended to defraud the creditor is A. Accion reivindicatoria B. Accion subrogatoria C. Accion redhibitoria D. Accion pauliana 7. Obligations may arise from any of the following, except:
A. contacts B. quasi-contracts C. law D. negligence
8. There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment shall be made A. At the domicile of the debtor B. At the domicile of the creditor C. Wherever the thing might be at the moment the obligation was constituted D. Wherever the thing might be at the moment the obligation is to be fulfilled 9. In which of the following situation is demand not necessary to consider the debtor delayed in the performance of his obligation? A. When the time of the performance is of the essence; B. When the time of performance has been stipulated C. When the law so provides; D. When demand would be useless.
10. These statements are presented to you: I. Innominate contracts, not having name under the law, are void because no law or rule governs them. II. Facio ut des and Do ut facias are innominate contracts. In your evaluation of the foregoing statements: a. Both are true. b. Both are false. c. Only statement I is true. d. Only statement II is true.
11. These statements are presented to you: I. Human hair may validly be the object of a contract of sale. II. The donation by a mother of a part of her liver to be transplanted to his son is valid. In your evaluation of the foregoing statements: a. Both statements are true. b. Both statements are false. c. Only statement I is true. d. Only statement II is true.
12. These statements are presented to you:
I.
A sale by auction is enforceable between the seller and the buyer although the memorandum made by the auctioneer on the sale was not signed by the seller and the buyer. II. Contracts that are enforceable under the Statute of Frauds are deemed ratified by the failure to object to the presentation of oral evidence to prove them. In your evaluation of the foregoing statements: a. b. c. d.
Both statements are true. Both statements are false. Only statement I is true. Only statement II is true.
13. Rescission is different from annulment in that rescission: a. Is a principal action b. May be availed of only by the parties whether bound principally or subsidiarily. c. Is brought to declare the inefficacy inherent in the contract. d. Is based on lesion or damage. 14. At the height of the flood, D saw C and his family bringing their personal effects to a higher ground. He offered his help which was accepted. Thereafter, C gave P500,000 to D who was not expecting the payment. The contract between D and C is: a. Onerous b. Remuneratory c. Gratuitious d. There was no contract at all.
15. Refer to No. 14, The cause is: a. The payment of P500,000. b. The benefit received by C. c. The personal effects of C and his family. d. There is no cause because there is no contract between D and C.
16. These statements are presented to you: I. There may be more than two parties to a contract. II. A party to a contract may be composed of more than one person. In your evaluation of the foregoing statements: a. b. c. d.
Statement I is true; Statement II is false. Statement I is false; Statement II is true. Both statements are true. Both statements are false.
17. A provision in a promissory note authorizing the creditor to increase, decrease, or otherwise change from time to time the rate of interest and/or bank charges without advance notice to the borrower is violative of which principle of contract? a. Relativity b. Mutuality c. Obligatory force d. Consensuality
18. It refers to a contract wherein one party imposes a ready-made form of contract, which the other party may accept or reject, but which the latter cannot modify. a. Aleatory contract b. Contract of adhesion c. Auto-contract d. Innominate contract 19. Which of the following is a disadvantage of forming a corporation? A. The existence of the entity is not affected by the personal vicissitudes or of the individual stockholder B. Free and ready transferability or ownership of shares C. Subservience of minority stockholders to the wishes of the majority subject only to equitable restraints D. The shareholders are not liable for the debts of the business
20.
Which of the following is the disadvantage of forming a corporation? A. The free and ready transferability of ownership B. The shareholders are not liable for the debts of the business. C. Because of the power of succession, the existence of the entity is not affected by the personal vicissitudes of the individual stockholders. D. The subservience of minority stockholders to the wishes of the majority subject only to equitable restraints.
21.
Plaintiffs filed a collection action against “X” Corporation. Upon execution of the court’s decision, “X” Corporation was found to be without assets. Thereafter plaintiffs filed an action against its present and past stockholder including “Y” Corporation which owned substantially all of the stock of “X” Corporation. The two corporation have the same board of directors and “Y” Corporation financed the operations of “X” Corporation. May “Y” Corporation be held liable because there was dela y. A. Yes, under the principle of “Corporate Opportunity” of Interlocking Director B. Yes, under the principle of “Trust Fund Doctrine” C. No, under the doctrine of “Separate Entity” D. Yes, under the principle of “Piercing the veil of corporate entity”
22.
This group of persons may not form a corporation and be incorporators in a corporation in the
Philippines A. Fifteen Spanish citizens who are residents of Manila B. Ten resident aliens and four aliens in Singapore C. Eleven Filipinos who are residents of San Francisco, California D. Seven American residing in the Philippines and two Filipinos residents of Hawaii
23.
A corporation cannot be an incorporator, because only natural persons may become incorporators, except A. Cooperative as incorporator of Rural Bank B. Eleemosynary corporations C. Charitable organizations incorporated under the Philippines Laws D. Corporation sole
24.
A, B and C are Filipinos who are residents of the Philippines. D, E and F are Filipinos who are onresidents, G and H are Japanese nationals residing in the Philippines. I and J are Japanese who are nonresidents. A. A, B, D, E and F may form a corporation in the Philippines B. D, J, I, A and H may form a corporation in the Philippines C. A, G, H, E and J may form a corporation in the Philippines D. none of the above
25.
Shares deposited by the seller or his agent with a bank or third party to be delivered to the buyer or subscriber only upon the fulfillment of the stipulated suspensive condition A. Promotion shares C. Redeemable shares B. Founders shares D. Escrow shares
26.
What need not be submitted outrightly to the SEC during incorporation stage. A.Articles of incorporation B.By-laws
27.
C. Treasurer’s Affidavit D. Bank Certification
The required minimum authorized capital stock for stock corporation is a. Not less than P5,000 b. 25% must be subscribed and 25% must be paid c. At least 25% must be subscribed and at least 25% must be paid but not less than P5,000 d. None as a rule provided the paid up capital is not below P5,000.
28. There is partnership except: A. Two or more parties consent to a contract, oral or written B. They give money, property or industry to a common fund C. There is division of profits and losses among themselves D. There is no fiduciary relationship. 29. Two or more juridical persons may also form a partnership for the exercise of a profession.
A. B. C. D.
The statement is wrong It is a correct statement Only natural persons can form a professional partnership (a) and (c) are true.
30. A universal partnership is void except: A. An inventory is not made when an immovable property is contributed. B. If the purpose or object is against the law, morals, public order, public policy and custom C. When made by persons who are prohibited in giving each other donation D. When there is no agreement as to profits and losses. 31. Which of the following statements is true? S1: A partnership like a corporation has a judicial personality separate and distinct from that of the each of the partners S2: Sharing of gross returns by itself proves a partnership A. Only S1 is correct B. Both statements are correct C. Only S2 is correct D. Both statements are incorrect 32. As to its object, a contracts of partnership is: A. Universal or Particular B. Universal or general C. Particular or limited D. General or Limited 33. S1: Co-ownership or co-possession establishes a partnership S2: Persons who are not partners as to each other are not partners as to third persons A. Both statements are true B. First statement is false; second statement is true C. Both statements are false D. First statement is true; second statement is false 34. The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business and it is given: A. As payment of a debt by installment of otherwise B. As wages or rent C. As an annuity to a widow or representative of deceased partner D. As his interest in the partnership 35. S1: Every partner is a debtor for the partnership for whatever he may have promised to contribute thereto S2: The designation of losses and profits can be entrusted to the managing partner A. Both statements are true
B. C. D.
First statement is false; second statement is true Both statements are false First statement is true; second statement is false
36. S1: All the partners shall be considered agents and whatever any one of them may do alone shall bind the partnership S2: Every partner may, without the consent of the other partners, associate another person in his share. A. Both statements are true B. First statement is false; second statement is true C. Both statements are false D. First statement is true; second statement is false 37. In Accion subrogatoria the creditor may exercise all of the rights and bring all of the actions which the debtor may have against third persons if: a. the account is personal b. The debtor's acts are fraudulent c. The debtor has performed an act subsequent to the contract, giving advantage to other persons d. Creditor must have the right of return against debtor 38. Proof of pecuniary loss is necessary for the award of: a. Liquidated damages b. Actual damages c. Exemplary damages d. Temperate damages 39. When A voluntarily takes charge of the neglected business of B without the latter’s authority where reimbursement must be made for necessary and useful expenses, there is a: a. Quasi – delict b. Negotiorum gestio c. Quasi – contract d. Solutio indebiti 40. There shall be no liability for loss due to fortuitous events in one of the following cases. Which is it? a. When the debtor delays b. When the parties so stipulated that mere shall be liability even in case of loss due to fortuitous events. c. When the nature of the obligation requires the assumption of risks. d. When the obligation is to deliver a determinate thing and there was no stipulation as to the liability of the debtor in case of loss due to fortuitous events. 41. Judy bought two (2) softdrinks at the price of P10.00 each. She paid the store P20.00. The store give her two softdrinks and coins worth P10.00. What is the source of obligation of Judy?
a. b. c. d.
Negotiorum gestio Solutio indebiti Quasi contract Law
42. S sold 100 bottles of imported “Fundado” brandy to B who paid immediately the price thereof amounting to P20, 000. S promised to deliver the brandy to B within one week from their agreement. On the agreed date of delivery, S delivered to B 130 bottles of fake "Fundado” brandy. The contract between S and B is: a. Voidable b. Valid c. Void d. Rescissible 43. On a certain year, D was obliged under a contract executed on March 1 to deliver an agricultural land to C on April 1. D, however, actually delivered the land and the fruits thereof to C on May 1. C became the owner of the agricultural land and the fruits thereof on: a. March 5 b. April 1. c. May 1. d. The period should be fixed by the court so that it could be determined when C actually became the owner of the agricultural land and its fruits. 44. This obligation is demandable at once: a. Pure obligation b. Obligation subject to resolutory condition c. Obligation with an in diem period d. All of the above 45. When the thing deteriorates pending the fulfilment of the suspensive condition without the fault of the debtor, the impairment is: a. To be borne by the party who caused the deterioration b. To be borne partly by the debtor and partly by the creditor c. To be borne by the debtor d. To be borne by the creditor 46. Dante borrowed P100,000 from Conti payable in 2 years. The contract stipulates that Dante will pay 1% monthly interest equivalent to P1,000 per month, directly to Tisiko, Conti’s brother, on the 25 th of each month for Tisiko’s support. Tisiko signifies his acceptance before it could be revoked. a. Tisiko has no right to receive the monthly paymen on the interest not being a party to the contract. b. Tisiko is not entitled to the monthly interest unless the money loaned is his. c. Tisiko is entitled to the monthly interest because the amount involved per month is very minimal.
d. Tisiko is entitled to the monthly interest even if he is not a party to the contract because this is a clear case of stipulation pour autrui. 47. Tindero sold to Mamimili the computer owned by Mabait without Mabait’s authority. The contract is a. Perfectly valid b. Voidable c. Void d. Unenforceable 48. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. Which of the following constitutes the offer? a. An offer made through an agent. b. Business advertisement of things for sale. c. Advertisement for bidders d. Answer not given 49. When there is concurrence of the offer and acceptance, there is – a. Consent b. Payment c. Revocation d. None of the above 50. Mr. Santos signed a letter addressed and delivered to Mr. Aguas. The terms of the letter are: i. An offer to sell a 500 sq. m for P300,000 ii. An option time up to October 21, 2015 for Mr. Aguas to raise the P300,000 iii. Upon payment of the P300,000, Mr. Santos will execute and sign a Deed of Sale On October 31, 2015, Mr. Santos sent a letter to Mr. Aguas asking for a new price of P350,000 for the 500 sq. m lot. Can Mr. Aguas compel Mr. Santos to accept the P300,000 and make him sign the and execute a Deed of Sale? a. No. Mr. Aguas did not accept the offer of Mr. Santos. b. Yes. Mr. Santos is already estopped by his signed letter and offer. c. Yes. There was an actual meeting of the minds. d. Yes. The contract has been perfected. 51. France offered to sell her cellular phone for P10,000 to her friend, Serra. Serra accepted the offer but is willing to pay only P8,000. Is ther a perfected contract? a. Yes, for a price of P8,000. b. Yes, for a price of P8,000. c. No, because the acceptance was qualified and it constituted a counter-offer. d. No, because the offer was rejected. 52. On July 1, Abaca offered in writing to sell Batangueño his car for P300,000. Batangueño accepted the offer and mailed the letter of acceptance on July 10 which was received by Abaca on July 20. However on July 15, Batangueño had already mailed a letter revoking his acceptance. Is there a perfect contract? a. Yes, despite the revocation made by Batangueño. b. None if the acceptance was received by Abaca ahead of the letter of revocation. c. Yes, even if the letter of revocation was received ahead of the acceptance. d. None, because at the time of the receipt of the letter of acceptance, there had already been a prior revocation of said acceptance. 53. An offer made through an agent is accepted from the time acceptance is communicated to the – a. Agent
b. Principal c. Agent and principal d. Agent and/or the principal 54. Money paid or promised to be paid in consideration for an option a. Option period b. Option money c. Earnest money d. Payment 55. Which of the following is not a prohibition on a limited partner? A. Surname of limited partner may not appear in the partnership name B. Limited partner may not take part in the control of the business C. Limited partner may not contribute service D. Limited partner may not constitute his assignee as substituted limited partner 56.
A, B and C as partners in a partnership stipulated and mutually agreed that A shall not share in the profits and losses. Is the agreement valid as among the partners only and not against third person? A. Yes, because among the partners it is valid to exempt one from sharing in profits and losses B. Yes, valid as long as third persons are not prejudiced C. Not valid stipulation exempting a partner from sharing profits and losses D. Not valid as against third persons or partnership creditors
57.
A newly admitted partner shall be liable for the pre-existing obligation for the partnership at the time of his admission in favour of partnership to the extent of his capital contribution. An industrial partner shall not share in the losses and his share in the profits shall be just and equitable under the circumstances. A. True, true C. False, false B. True, false D. False, true
58.
59.
Three of the following dissolves a partnership, except: A. Partnership business has become unlawful B. Death, civil interdiction or insolvency of a partner C. Expulsion of partner D. Partnership business can only be carried on at a loss A partner who is liable to the partnership for damages due to his fault may claim compensation if through his extraordinary efforts in other activities of the partnership unusual profits have been realized. A partner shall be the debtor of the partnership if he fails to deliver his promised contributions and shall be in delay from the time of a demand from the partnership. A. True, true C. False, false B. True, false D. False, true
60. A contributed P1M, B contributed P1M, and C contributed services. They agreed to divide the profits and losses equally. In case of loss of P.3M, how much, if any, is C liable? A. Nothing, because an industrial partner is exempt from losses B. P.1M but with reimbursement from A and B equally C. A and B alone shall shoulder the loss at C’s option D. P.1M
61.
Suppose in the preceding case, there was no agreement as to profit-loss sharing, what will be the share of C in the profit? A. Equal to the share of A and B C. P1M B. Just and equitable under the circumstances D. Court to fix his share
62.
Based on the preceding number, what shall be his share in the loss? A. Equal to the share of A and B C. P1M B. Just and equitable under the circumstances D. None
63.
Which of the following is the characteristic of partnership as a contract? A. Preparatory B. Formal C. Innominate D.
Gratuitous
64. Which of the following is not an express power of the corporation? a. To adopt by-laws and amend or repeal the same b. To enter into merger and consolidation with other corporation c. To make reasonable donations including those for the public welfare or for hospital, charitable, cultural. Scientific, civic and similar purposes d. To established pension retirement and other plans for the benefit of its directors, trustees, officers, and employees. e. None of the above 65. Statement 1: The Articles of Incorporation or the by-laws may limit or even completely deny the right to vote of any class member in a corporation. Statement 2: Subscribers for stock shall be liable to the corporation for the interest from the date of subscription, but only if so required in the by-laws. a. Both are true b. Both are false c. No. 1 is true; N0. 2 is false d. No. 1 is false; No. 2 is true 66. The interest or rights of the owner in the management of the corporation in the surplus profits and on dissolution in the balance of its assets after the payment of the debt is a. Certificate of stock b. Share of stock c. Dividend d. Legal capital e. None of the above 67. A written instrument signed by the proper officers of the corporation, stating or acknowledging that the person named therein is the holder of a designated number of shares of its stock a. Certificate of stock b. Share of stock c. Certificate of incorporation d. Dividend e. None of the above 68. The owners of shares in stock corporation are called
a. b. c. d. e.
Incorporators Promoters Members Stockholders None of the above
69. Shares of stock may be issued for a. Actual cash b. Tangible or intangible properties c. Labor performed for or services actually rendered to the corporation d. Previously incurred indebtedness by the corporation e. All of the above 70. A non-stock corporation a. May not engage in business b. One where the capital stock are divided into shares c. No part of the income must be distributed as dividends d. May have 15 board of trustees whose shall have a term of office of 3 years e. All of the above 71. The holders of non-voting shares shall be entitled to vote on the following matters, except; a. Amendments of the Articles of Incorporation b. Sales, lease mortgage, or other disposition of all or substantially all of the corporate properties c. Incurring, creating, or increasing bonded indebtedness d. Increase or decrease of capital stock e. None of the above 72. The quorum required by law to elect directors: presence of owners of a. Majority of the outstanding capital-voting b. Majority of the outstanding capital-voting and non-voting c. 2/3 of the outstanding capital voting d. 2/3 of the outstanding capital-voting and non-voting 73. Statement no. 1: D oblige to give a specific car to C on Dec. 20, 2006. If on the date stated D did not comply with his obligation, the next day he is considered in default without the need of demand. Statement no. 2: S sold to B a specific car for 10,000.00. Both parties promise to comply with their obligations the day after tomorrow. If on the date stated S delivers the car to B, but B is not ready to comply with his obligation, from thereon he is considered in default without the need of a demand. A. Both are true B. Both are false C. No. 1 is true; No. 2 is false D. No. 1 is false; No. 2 is true
74. It refers to joint obligation: A. One which each of the debtors is liable only for a proportionate part of the debt and each creditor is entitled only for a proportionate part of the credit. B. One in which each debtor is liable for the entire obligation, and each creditor is entitled to demand the whole obligation C. One in which either one of the parties is indispensable and the other is not necessary D. One in which the obligation of one is a resolutory condition of the obligation of the other, the non-fulfillment of which entitles the other party to rescind the contract.
75. Conrad and Charlie are jointly indebted to Pete for 100,000.00. Pete assigned his interest to Crispin who assigned it back Conrad. A. The debt is totally extinguished by compensation B. The debt is totally extinguished by merger C. The debt is partially extinguished by compensation D. The debt is partially extinguished by merger
76. In three of the following cases, compensation shall not be proper. Which is the exception? A. Commodatum B. Gratuitous support C. Civil liability arising out of criminal offenses D. Bank deposit
77. B1 Company bought out a competitor, B2 Corporation, with a stipulation that B2 Corporation should not thereafter engage in any business in the Philippines unless consented to and approved by B1 Company. a. The stipulation is void because it is contrary to public policy. b. The stipulation is defective but subject to ratification. c. The stipulation is valid because the parties are free to enter into any business in the Philippines unless consented to and approved by B1 Company. d. The stipulation is unenforceable as there was no showing that the was done in writing 78. A is indebted to B for 20,000.00. X is the guarantor of A. B is also indebted to A for 8,000.00. how much will X be liable as guarantor if B sues A, and cannot pay? A. 12,000.00 B. 20,000.0 C. 8,000.00 D. X has no liability
79. Statement no. 1: The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be of the same value or more valuable than that which is due.
Statement no. 2: In dation in payment, ownership of the thing delivered is transferred to the creditor; while in cession, it merely authorizes the creditor to convert the property into cash and out of the proceeds to extinguish the obligation partially. A. Both are true B. Both are false C. No. 1 is true; No. 2 is false D. No. 1 is false; No. 2 is true
80. I will give you specific car if you will marry X this year, 20016. Which of the following statement in incorrect? A. If on December 25, X died, without marriage, my obligation is effective because one party is dead, marriage is impossible to take place. B. If on December 25, X died, without marriage, my obligation is extinguished because one party is dead. Marriage is impossible to take place. C. If the year has ended, no marriage taking place, both parties are alive, just the same my obligation is extinguished because the time indicated has already elapsed D. If you marry X on December, my obligation is to give you the car
81. In a contract of sale executed by S and B, it appears S sold his motor vehicle to B and B bought it for P10, 000. It turned out however, S has three motor vehicles. Gallant valued P80, 000: Hi-Ace van valued P70, 000; and a Jeep valued P60, 000. Which of the following is correct? a. The contract shall be reformed because there was mistake b. The parties can ask for interpretation because the word Motor vehicle is ambiguous. c. There is no contract. d. The parties can ask for annulment of the contract 82. The following contracts are void or inexistent, except: a. Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy b. Those which are absolutely simulated or fictitious c. Those whose cause or object did not exist at the time of transaction d. Those where one of the parties employed fraud to obtain the consent of the other 83. If the illegal contract between the parties is a criminal offense but only one party is guilty, such illegal contract shall produce the following effects, except: a. The guilty party will be criminally prosecuted b. Neither party may compel the other to comply with his undertaking c. The instruments shall be confiscated in favour of the government d. The innocent party cannot recover what he has given 84. Reformation of an instrument is available in the following cases, except:
a.
When a mutual mistake of the parties causes the failure of the instrument to disclose their agreement b. When one party was mistaken and the other party acted fraudulently or inequitably in such a way that the instrument does not show the true intention c. When a party was mistaken and the other knew or believed that the instrument did not state their real agreement d. When one of the parties has brought an action to enforce the contract 85. A contract of sale is not a: a. Principal contract b. Nominate contract c. Consensual contract d. Real contract 86. D insured his house against fire with C insurance company. The insurance policy which was prepared and printed by C insurance company was signed by D after reading its terms. You are to determine which of the following characterize the contract between D and C insurance company. I. Auto-contract II. Contract of adhesion III. Aleatory contract IV. Nominate contract The contract between D and C insurance company is: a. b. c. d.
I, II and III II, III and IV I, II and IV I, III and IV
87. Which of the following contracts 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 88. P is a minister of a certain church whose members include X. X regularly confides in P because of his many personal problems. P is interested in buying the lot of X and uses his position as elder of the church and confidant of X to convince X to sell to him the lot. Should X sell the lot to P by reason of P taking advantage of his confidential relationship with X, the contract between them would likely be voidable because of: a. Intimidation b. Undue influence c. Fraud d. Mistake
89. B bought a baby boy from S. B knew that the baby boy was his illegitimate son by a woman named W and which W sold to S. the contract between B and S is: a. Valid b. Void c. Unenforceable d. Voidable 90. D, out of love and affection for C, donated a parcel of land to the latter who accepted it. The formalities required by law were complied with. The contract between D and C is: a. An onerous contract b. A gratuitous contract c. A remuneratory contract d. An accessory contract 91. Which of the following contracts is valid and unenforceable? a. An oral promise to answer for the default of another b. A donation and its acceptance in a private instrument of a parcel of land c. An oral lease of a mining equipment for more than two years d. An oral contract of sale of a ring worth P450.00 between an insane and a minor 92. If the obligation of the debtor is I will pay you my debt after I have arrived from abroad. The obligation is A. Valid B. Void C. Voidable D. Unenforceable
93. D is obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as substitute. Which of the following statements is true? a. If the ring is lost through a fortuitous event before substitution, the obligation is extinguished. b. If the bracelet is lost through a fortuitous event before substitution, the obligation is extinguished. c. If the ring is lost through a fortuitous event after substitution, the obligation is extinguished. d. If the ring is lost through the debtor’s fault after substitution, the debtor shall pay damages. 94. 1st Statement: Mr. X waived in advance his right to sue Mr. A, if A will cause him injury due to A’s negligence. The waiver is void. 2nd Statement: Dolo incidente or fraud in the celebration of contacts is a ground to annul the obligation. A.
B.
C.
D.
1st Statement
True
False
True
False
2nd Statement
True
False
False
True
When the debtor abandons and assigns all his properties in favor of his creditors for the latter to sell and satisfy their credits, this is: A. Payment by cession
C. Dacio en pago
B. Application of payment
D. Expromission
95. D is under obligation to deliver to C a Toyota Altis with an engine no. 1234567. When D was on the way to deliver the car, it was destroyed at a time when D was not yet in delay. The law pr esumes that the loss is due to a. The defective nature of the car b. A fortuitous event c. The fault on the part of D d. The fault or negligence of the debtor
96. Didith, Diana, and Dura executed a promissory note worded as follows: “We promise to pay to Carlito, Colinares, and Colico the sum of P180,000.” (Sgd.) Didith, Diana, and Dura. a. Didith is obliged to pay Carlito, Colinares, and Colico P180,000. b. Didith is obliged to pay Carlito P80,000. c. Didith is obliged to pay Carlito P20,000. d. Didith is obliged to pay Carlito P60,000. 97. A, B and C executed a promissory note in favor of D, E and F in the amount of P9,000. 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 98. Unless the by-laws provide otherwise, written notice of regular meetings shall be sent to all stockholders or record a. b. c. d.
At least one day prior to the meeting At least two days prior to the meeting At least one week prior to the meeting At least two weeks prior to the meeting
99. Statement 1: amendment of the articles of incorporation requires majority vote of the board of directors or trustees and the vote or written assent of the stockholders representing at least 2/3 of the outstanding capital stock or at least 2/3 of the members entitled to vote. Statement 2: any director or trustee of a corporation may be removed from office by a vote of the stockholders holding or representing at least 2/3 of the outstanding capital stock or at least 2/3 of the members entitled to vote. a. True, true b. True, false c. False, true d. False, false
100. Which of the following causes of vacancy in the board of directors may be filled by the remaning directors if they still constitute a quorum? a. Increase in the number of directorsu8uu b. Removal of a director c. Expiration of the term of a director d. Disqualification of a director Y777767777yy8u
