SUAREZ OBLIGATION
1. Statement no. 1: The creditor may be compelled to accept payment in checks as long as the check is negotiable. Statement no. 2: An obligation payable “should the client die of diabetes” is an obligation subject to a period. a. Statement o. 1 is false !hile statement o.2 is true. b. Statement o. 1 is true !hile statement o. 2 is true. c. "oth Statement are false d. "oth Statement are true 2. The buyer has the right to the fruit of the thing from: a. The time the thing is deli#ered b. The time the contract is perfected c. The time the obligation to deli#er the thing arises d. The time the fruits are deli#ered $. Statement no. 1: %ust before the obligation became due and demandabl demandable& e& the debtor debtor proposed proposed to the creditor that he !ould gi#e him a speci'c car instead of paying paying 1()&) 1()&))) )).) .))& )& and !hich !hich propo proposal sal !as acce accept pted ed by the the cre credito ditorr. *ere *ere&& ther there e is e+tinguishment of an obligation by !ay of dacion en pago. Statement Statement no. 2: After After substituti substitution on in facultati facultati#e #e obligations& the loss of the principal through the fault or negligence of the debtor shall render him liable for damages in fa#or of the creditor. a. "oth are true b. "oth are false c. o. 1 is true& o. 2 is false d. o. 1 is false& o. 2 is true ,. -eeting in one person of the characterist characteristics ics of both the debtor and creditor in one and the same obligation e+tinguishers the obligation by !ay of: a. o#ation b. ompensation or set/o0 c. ondonation or remission d. -erger or confusion (. onsignation alone& as a special form of payment& may e+tingu e+tinguish ish an obliga obligatio tion n under under any of the follo!ing instances. hich is the e+ception e+ception a. hen the creditor is absent& or is unkno!n or does not appear in the place of payment. b. he hen n the cr credi editor tor is cap capaci acitat tated ed to re rece cei#e i#e payment c. hen the creditor refuses to issue receipts d. hen there are t!o or more persons claiming title to one and the same obligation e. hen title to the same obligation has been lost
3. Statement no. 1: in alternati#e obligations& it is the notice of !hich prestation to perform made by the debtor shall con#ert the alternati#e obligation into a pure or simple one. Statement no. 2: 4n the case of a joint obligation& the co/debtors may be held liable for the share of an insol#ent co/debtor. a. "oth Statement are true b. "oth statement are false c. Statement no. 1 is true !hile statement no. 2 is false d. Statement no. 1 is false !hile statement no. 2 is true 5. An obligation based on positi#e la! and gi#e right to enforce its performance. performance. a. i#il 6bligation b. -oral 6bligation c. 7egal 6bligation d. atural 6bligation 8. An obligation !herein #arious things are due& but the payment of one of them is su9cient to e+tinguish the obligation is called: a. Simple obligation b. onjoint obligation c. Alternati#e 6bligation d. acultati#e 6bligation ;. An obligation !herein #arious things are due but the complete performance of all of them is necessary to e+tinguish the obligation a. acultati#e obligation b. onjoint obligation c. Alternati#e obligation d.
no. 2 is false d. o. 1 is false> no. 2 is true 11. hange of persons or objects: a. Solutio indebiti b. one of the abo#e c. o#ation d. onfusion 12.hich of the follo!ing is not a ground for the e+tinguishment e+tinguishment of an obligation a. ?emission
b. -erger c. ompensation d. @eath of creditor e. one of the abo#e 1$.S o!ns an oil painting. "eing in need of money& S sold the painting to " for 1&))).)). After the sale S disco#ered that the painting !as #aluable and !orth (&))).)). a. " is entitled to the bene't of the contract because it is #alid and binding. binding. b. S may annul the contract on ground of error c. S may annul the contract on ground of fraud d. S may rescind the contract on ground of lesion or inadeuacy of cause. 1,.A and " are jointly and se#erally liable to for 2)&))).)). A is a minor. a. can collect 2)&))).)) from " b. can collect 1)&))).)) from " c. can collect 1)&))).)) from A that is the share of ". d. can collect 2)&))).)) because minority is not a defense 1(.B#er 1(.B#ery y obligation obligation !hose performance performance does not depend upon a future or uncertain e#ent& or upon a past e#ent unkno!n to the parties& is demandable at once. This refers to: a. @i#isible and 4ndi#isible obligation b. %oint and Solidary obligations c.
18. “4Gll gi#e you my car one year after your death.” The obligation is a. Halid because the e#ent is sure to come b. Hoid& not legally possible c. Halid& the obligation is conditional d. Halid& but disregard the condition. 1;.Statement no. 1: @ oblige to gi#e a speci'c car to on @ec. 2)& 2))3. 4f on the date stated @ did not comply !ith his obligation& the ne+t day he is considered in default !ithout the need of demand. Statement no. 2: S sold to " a speci'c car for 1)&))).)). "oth parties promise to comply !ith their obligations the day after tomorro!. 4f on the date stated S deli#ers the car to "& but " is not ready to comply !ith his obligation& from thereon he is considered in default !ithout the need of a demand. a. "oth are true b. "oth are false c. o. 1 is true> o. 2 is false d. o. 1 is false> o. 2 is true 2).4t refers to joint obligation: a. 6ne !hich 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. 6ne in !hich each debtor is liable for the entire obligation& and each creditor is entitled to demand the !hole obligation c. 6ne in !hich either one of the parties is indispensable and the other is not necessary d. 6ne in !hich the obligation of one is a resolutory condition of the obligation of the other& the non/ ful'llment of !hich entitles the other party to rescind the contract. 21.onrad and harlie are jointly indebted to
2,.A is indebted to " for 2)&))).)). = is the guarantor of A. " is also indebted to A for 8&))).)). ho! much !ill = be liable as guarantor if " sues A& and cannot pay a. 12&))).)) b. 2)&))).) c. 8&))).)) d. = has no liability 2(.Statement no. 1: The debtor of a thing cannot compel the creditor to recei#e a di0erent one& although the latter may be of the same #alue or more #aluable than that !hich is due. Statement no. 2: 4n dation in payment& o!nership of the thing deli#ered is transferred to the creditor> !hile in cession& it merely authoriJes the creditor to con#ert the property into cash and out of the proceeds to e+tinguish the obligation partially. a. "oth are true b. "oth are false c. o. 1 is true> o. 2 is false d. o. 1 is false> o. 2 is true 23.4 !ill gi#e you speci'c car if you !ill marry = this year& 2))13. hich of the follo!ing statement in incorrect a. 4f on @ecember 2(& = died& !ithout marriage& my obligation is e0ecti#e because one party is dead& marriage is impossible to take place. b. 4f on @ecember 2(& = died& !ithout marriage& my obligation is e+tinguished because one party is dead. -arriage is impossible to take place. c. 4f the year has ended& no marriage taking place& both parties are ali#e& just the same my obligation is e+tinguished because the time indicated has already elapsed d. 4f you marry = on @ecember& my obligation is to gi#e you the car 25.-r. @ebtor o!es -r. reditor !ho has t!o E2F legitimate children& ()&))).)) payable on @ecember $1& 2))3. a. 4f -r. @ebtor dies before @ecember $1& 2))3& -r. reditor cannot collect from the heirs of -r. @ebtor . b. 4f -r. @ebtor dies before @ecember $1& 2))3& -r. reditor can collect from the heirs of -r. @ebtor. c. 4f -r. reditor dies& his t!o E2F legitimate emancipated children cannot reco#er from -r. @ebtor his obligation. d. 4f both -r. @ebtor and -r. reditor die& the heirs of -r. reditor can collect from the heirs of -r. @ebtor. 28.A judicial relation kno!n as negotiorum gestio takes place.
a. hen a person #oluntary takes charge of anotherGs abandoned business or property !ithout the o!nerGs consent. b. hen something is recei#ed and there is no right to demand it and it !as deli#ered through mistake c. hen a person is appointed by a court to take the property of business of another. d. one of the abo#e. 2;.A o!es " 2&))).)) demandable and due on September 1)& 2))3. " on the other hand& o!es A 2&))).)) demandable and due on or before September $)& 2))3. 4f " claims compensation on September 1)& 2))3& can A rightfully oppose a. o. " !ho !as gi#ing the bene't of the term& may claim compensation because he could then choose to pay his debt on September 1)& 2))3 !hich is actually “on or before September $)& 2))3.” b. Ces& A can properly oppose because for compensation to take place& mutual consent of both parties is necessary. c. Ces& A c ab properly oppose and if " still refuses to accept his payment made on September $)& 2))3& A can deposit his payment in court. d. one of the abo#e. $).Statement no. 1: -erger taking place in the person of the guarantor shall e+tinguish only the secondary contract such as the contract of guaranty but not the principal obligation. Statement no. 2: !hen the debtor promises to pay his obligation “!hene#er his means permit him to do so” the obligations is !ith a period. a. "oth statement are true b. "oth statement are false c. Statement no. 1 is true !hile statement no. 2 is false d. Statement no. 1 is false !hile statement no. 2 is true $1.@ obliged himself to paint the house of or to paint the picture of & in a standing position& using 1) by 1) can#ass. 7ater because of 'nancial re#erses& sold his house to =. !hich of the follo!ing statement is correct a. The obligation of @ is e+tinguished because he cannot make a choice. b. @ may paint the picture of c. @ may cancel the contract and ask for damages d. one of the abo#e $2.@ obliged himself to gi#e a speci'c car to on @ecember 2(& 2))3& stipulating that @ is liable e#en if the thing is lost due to fortuitous e#ent& and !ithout the need of a demand. 6n the due date& the car got lost due to fortuitous e#ent. hich of the follo!ing is correct
a. 6bligation remains to subsist& but con#erted into monetary consideration b. can compel @ to deli#er another car c. can reuire another person to deli#er a car& e+penses chargeable to @. d. 6bligation is totally e+tinguished $$.Statement no. 1: The debtor of a thing cannot compel the creditor to recei#e a di0erent one& although the latter maybe of the same #alue or more #aluable than that !hich is due. Statement no. 2: 4n dation of payment& o!nership of the thing deli#ered is transferred to the creditor> !hile cession& 4t merely authoriJe the creditor to con#ert the property into cash and out of the proceeds to e+tinguish the obligation partially. a. "oth are true b. "oth are false c. o.1 is true& no. 2 is false d. o.1 is false& no.2 is true $,.A is obliged to gi#e " his only car on September 1& 2))3. 6n the said date& A did not deli#er. 6n September 2& 2))3& an earthuake completely destroyed the car. 4s A still liable a. o. onsidering that no demand to deli#er !as made by " and the speci'c thing !as lost due to fortuitous e#ent& the obligation is e+tinguished. b. o. the obligation is e+tinguished& e#en if the debtor is already in default because the debtor can plead impossibility of performance c. Ces. A is already in legal delay thus the obligation to deli#er the lost speci'c thing is con#erted into monetary claim for damages. d. Ces. The creditor can instead demand for a substitute of eui#alent #alue from the debtor. $(.A sold his co! to " for 2&()).)). o date !as stipulated for the deli#ery of the co!. hile still in the possession of A& the co! ga#e birth to a calf. a. A is entitled to the calf because it !as born before his obligation to deli#er the co! arises. b. A is entitled to the calf as " has not paid the price c. " is entitled to the calf !hich !as born after the perfection of the contract d. "& in order to be entitled to the calf& should pay additional cost for the calf to be agreed upon by both parties. $3.The kind of compensation !hich may only be raised by the creditor and not by the debtor in the obligation to gi#e gratuitous support: a. %udicial compensation b. on#entional compensation c. acultati#e compensation d. 7egal compensation
$5.Statement no. 1: 7egal compensation takes place by operation of la! e#en if the parties may not be a!are of it. Statement no. 2: The indi#isibility of an obligation necessarily implies solidarity. a. "oth statement are true b. "oth statement are false c. Statement no. 1 is true !hile statement no .2 is false d. Statement no. 1 is false !hile statement no. 2 is true $8.@ebtor obliged himself to deli#er to creditor 1)) ca#ans of rice on )3K)1K2))1. 6n said date& @ failed to make deli#ery despite repeated demands by . 4n this case: a. has no remedy under the la! b. can compel @ to deli#er 1)) ca#ans of rice plus damages c. may ask a third person to deli#er 1)) ca#ans of rice to him& the #alue reco#erable from @ plus damages d. one of the abo#e. $;.The kind of compensation !hich arises by !ay of pro#ed counterclaim in a case called: a. 7egal compensation b. Holuntary compensation c. %udicial compensation d. acultati#e compensation ,).Statement no. 1:
formality reuired by la!. 4n this case& !hich statement is correct a. The principal obligation is e+tinguished b. The real estate mortgage is e+tinguished c. "oth the principal obligation and the mortgage are e+tinguished by remission d. "oth the principal and accessory obligations subsist. ,$.hich of the follo!ing is not an obligation !ith a period a.
d. ombination of A and ". ,8.The follo!ing& e+cept one& are reuisites of payment as a mode of e+tinguishing an ordinary obligation. hich is the e+ception a. omplete or full payment b.
1. hich of the follo!ing can be considered as a feature of a #oid contract a. Subject to rati'cation b. They e+ist c. Action or defense for nullity is subject to prescription d. one of them 2. 7 entered into a contract of lease !ith =. T& the clerk of 7& typed the document. @ue to TGs negligence& the document made !as that of sale instead of lease. a. The remedy is annulment b.
(. S o0ers to sell his house to " for <1))& ))). " asks him if he !ould accept <8)& ))). hich of the follo!ing is correct a. "ecause of ambiguity& both o0ers are terminated by operation of la!. b. "Gs response is a counter/ o0er e0ecti#ely terminating the <1)& ))) o0er and instigating an o0er for <8)& ))). c. "Gs response is a more inuiry& the <1))& ))) o0er by S is still in force. d. "Gs response is a rejection of the <1))& ))) o0er& and there is no o0er for <8)& ))) because it is too inde'nite to be an o0er. 3. B+ample o. 1: I& guardian of & sold Gs house #alued at <()& ))) for <$5& ()) or a lesion by one/ fourth of the #alue. B+ample o. 2: S sold his house #alued to <()& ))) for only <1)& ))) because S did not kno! the true #alue of the house. a. "oth contracts are rescissible. b. 6nly o. 1 is rescissible. c. o. 2 is #oidable because there is an error or mistake. d. "oth contracts are #alid and enforceable. 5. "1 ompany bought out a competitor& "2 orporation& !ith a stipulation that "2 orporation should not thereafter engage in any business in the
1) .B+ample 1 L S sold to " in a pri#ate instrument his land. 7ater& " !anted to ha#e the sale registered& but registration reuires a public instrument. 4n here& " may compel S to e+ecute the needed public instrument. B+ample 2 L S sold to " orally his speci'c land. After " paid S the price of the sale& he !ant to registered the land in his name but he needed a public instrument of sale. 4n here " may compel S to e+ecute the needed public instrument. a. "oth e+amples are also b. 6nly 1 is true c. 6nly 2 is true d. "oth e+amples are true 11. 4n a contract of sale e+ecuted by S and "& it appears S sold his motor #ehicle to " and " bought it for <1)& ))). 4t turned out ho!e#er& S has three motor #ehicles. Iallant #alued <8)& ))): *i/Ace #an #alued <5)& )))> and a %eep #alued <3)& ))). hich of the follo!ing is correct a. The contract shall be reformed because there !as mistake b. The parties can ask for interpretation because the !ord -otor #ehicle is ambiguous. c. There is no contract. d. The parties can ask for annulment of the contract 12.An agreement is restraint of trade. a. Hoid b.
d. All of the abo#e 1(.hich of the follo!ing contracts is not reuired to appear in a public document a. Acts and contracts !hich ha#e for their object the creat io n& tr an smi ss ion & m od i'ca ti on or e+tinguishment of real rights o#er immo#able property& sales of real property or of an interest. b. The cession& repudiation or renunciation of hereditary rights c. The po!er to administer property d. Sale of immo#able property e. one of the abo#e. 13.4n order that a stipulation in fa#or of a third person in a contract !ould be #alid and binding upon the parties thereto& three of the reuisites are mentioned in the follo!ing enumeration. hich among them is not a reuisite a. There must be a stipulation in fa#or of a third person. b. That there must be an e+isting agency bet!een either of the contracting parties and the third person. c. The contracting parties must ha#e clearly and deliberately conferred a fa#or upon that third person. d. The third person communicated his acceptance to the obligor before its re#ocation. 15.Statement o. 1: @olo incidente entitles the person against !hom& it !as employed the right to seek the annulment of the contract. Statement o. 2: A stipulation pour autrui is an e+ception to the rule on relati#ity of contracts. a. "oth are true b. "oth are false c. o. 1 is true> o. 2 is false d. o. 1 is false> o. 2 is true 18.B+ample o.1: & 13 year old& sold his house #alued at <1 - for <()& ))) or a lesion by more than one/fourth of the #alue of the said house. B+ample o. 2: S sold his house #alued at <1 - for only <,))& ))) because S did not kno! the true #alue thereof. a. "oth e+amples are unenforceable b. o. 1 is rescissible> !hile o. 2 is unenforceable c. "oth contracts are binding d. o. 2 is unenforceable 1;.S o!ns an oul painting. "eing in need of money& S sold the painting to " for <1& ))). After the sale it !as disco#ered that the painting !as #aluable and !orth <(& ))). a. " is entitled to the bene't of the contract because it is #alid and binding. b. S may rescind the contract on ground of lesion or inadeuency of cause
c. S may rescind the contract on ground of fraud d. S may annul the contract on the ground the error 2). “A”& bachelor la!yer& raped t!ice. Mpon learning this& “” the father of & !as able to force A to marry under pain of being sued in court and dibarred from the practice of his la! profession. hich statement is correct a. There !as no defect& the marriage !as perfectly #alid b. The marriage may be annulled on the ground of force or #iolence c. The marriage may be annulled on the ground of threat of intimidation d. The defecti#e marriage may& ho!e#er& be rati'ed 21.Statement o. 1: 4f the cause is not stated in the contract it is presumed that it is unla!ful. Statement o. 2: the action for rescission is subsidiary& it cannot be instituted e+cept !hen there is no other legal means to obtain reparation for damages su0ered. a. "oth are true b. "oth are false c. o. 1 is true> o. 2 is false d. o. 1 is false> o. 2 is true 22.4n an “in#itation to bud”& " proposes the follo!ing: “4 !ill buy the property for <1)& ))) if the bid of any other o0errors or bidders shall be considered the best terms of amount and conditions& 4 am to eual that o0er”. a. The o0er is speculati#e& because it cannot be considered as against another o0er !hich is certain. b. The o0er is considered a counter o0er c. The ad#ertiser is not bound to accept the highest bidder. d. This is a continuing o0er !hich is #ery certain 2$.4n the preceding uestion& !hich of the follo!ing statements is correct a. 4f there is no more o0er made& the contract is perfected on the o0er of " because he !ill be considered as the highest bidder b. *o!e#er& if another bidder& =& bid <1(& )))& he !ill be considered as the highest bidder and the contract is perfected. c. 4n letter EbF& if = increase his bid for <2)& )))& and no more bid euals his bid& the contract is perfected for <2)& ))) d. Ans!er not gi#en 2,.?eluctantly and against her good sense and judgment& ?osemarie entered into a contract for the deli#ery of ( tables to oraJon for a price of <1(& ))). ontract is: a. Hoid
b. Hoidable c. Mnenforceable d. Halid 2(.I !as appointed guardian of S& the latter being 13 years old. S sold his parcel of land in !riting to " #alued at <1))& ))) for <5(& )))& su0ering lesion by N pf the #alue. hat is the status of the contract: a. ?escissible b. Mnenforceable c. Bnforceable d. Hoidable 23.6ne of the stipulations contained in the contract bet!een - ompany and its employees is that the company shall pay a bonus to employees of the company !ho shall continue its employment for at least 2 consecuti#e years& unless be uits or is discharged before the e+piration of the period of 2 years. =& an employee of the company !as discharged !ithout just cause& one !eek before the completion of the t!o/year period. a. = is not entitled to the bonus because his discharge !as in accordance !ith the contract. b. = is entitled to the bonus because the debtor company has #oluntarily pre#ented the happening of the condition. c. = is not entitled to the bonus& because the employerGs right to terminate is superior than the right of the employee to be employed. d. = is entitled to the bonus !hether the discharge is !ith or !ithout cause. 25.Statement o. 1: if one party !as mistaken and the other acted fraudulently or ineuitably in such a !ay that the instrument does not sho! their true intention& the former may ask for the annulment of the instrument. Statement o. 2: The statement of a false cause in contracts shall render them #oid& if it should not be pro#en that they !ere founded upon another caused !hich is true and la!ful. a. "oth are true c. o. 1 is true> o. 2 is false b. "oth are false d. o. 1 is false> o. 2 is true 28.-ust be in !riting to be enforceable: a. 7ease of land for 12 months b. 7ease of care for 18 months c. "oth of a and b d. one of a and b 2;.hich of the follo!ing is not a reuisite for the #alidity of a contract a. onsent b. 6bject c. @eli#ery of the thing d. ause or consideration
e. one of the abo#e $).@ o!es <()). *o!e#er& Gs right has already prescribed. ot!ithstanding the kno!ledge of thus fact& @ paid the amount. ?ealiJing this mistake& @ !ants to reco#er the amount he paid. a. @ can be made to reco#er on ground of mistake. b. @ can be made to reco#er on the ground that his obligation is not legally enforceable. c. @ can be made to reco#er because this !ill enrich at the e+pense of @. d. @ cannot reco#er. $1.Three of the follo!ing contracts are #oid. hich is the e+ception a. Those !hose cause& object or purpose is contrary to la!& morals& good customs& public order or public policy. b. Those !hich re absolutely stimulated or 'ctitious. c. Those !here both parties are incapable of gi#ing consent to a contract. d. Those !hich cause or object did not e+ist at the time of the transaction. $2.=& a former go#ernment employee& su0ered from se#ere paranoia and !as con'ned in the mental hospital in 2))3. After his release he !as placed under the guardianship of his !ife to enable his to get his retirement pay. 4n 2));& he became a mining prospector and sold some mining claims. 4n 2)12& he sues to annul the sale claiming that he !as not mentally capacitated at the time of sale. The sale in uestion !as a. 4llegal c. Hoid b. Halid d.Hoidable $$.hich of the follo!ing is presumed not to be legal subrogation a. hen a creditor pays another creditor !ho is preferred b. hen a third person& not interested in obligation& pays !ith the appro#al of the debtor c. hen a third person interested in the obligation& pays e#en !ithout the appro#al of the debtor d. one of them $,.Bssential reuisites of a contract: a. onsent c. Subject b. ause d. All of them $(.hich of the follo!ing instruments is not subject to reformation a. Simple donations inter #i#os !herein no condition is imposed b. ills c. hen the real agreement is #oid d. All of the abo#e
$3.Halid until annulled unless there has been a rati'cation a. ?escissible contract c. Hoidable contract b. 4ne+istence contract d. one of the abo#e $5.4n three of the follo!ing defecti#e contracts& rati'cation ceases the d efects. hich is the e+ception a. Sale of piece of land thru an agent the authority is oral b. Sale of immo#able property or interest orally entered into c. ontracts entered into by a person !ho has been gi#en no authority. d. "oth parties are incapable of gi#ing consent. $8.S makes an o0er to " on %anuary 1& 2))5. " makes kno!n his acceptance in a letter sent on %anuary 2& and recei#ed by S on %anuary 1). -eantime& on %anuary (& S become insane. a. The contract is #oidable because on party is insane b. The contract is not binding because there is no meeting of minds. c. There is already a meeting of minds& the contract is perfected. d. one of the abo#e $;.4n the preceding number S is perfectly sane but only an un/ emancipated minor of the time the acceptance is communicated to him. a. There is no meeting of minds bet!een the parties& unless rati'ed by the guardian of S. b. The contract is not binding because the party is incapacitated c. The contract is binding bet!een the parties d. one of the abo#e ,).hich of the follo!ing contracts is #oidable a. Those !here one of the parties is incapacitated. b. Those !hose object is outside the commerce of men. c. Those !hich are absolutely 'ctitious. d. Those !hich contemplate an impossible ser#ice ,1.The stipulation in a contract to the e0ect that the debtor should remain as a ser#ant in the house and in the ser#ice of her creditor so long as she had not paid her debt is #oid because it is: a. ontrary to good custom b. ontrary to public policy c. ontrary to la! and morality d. one of the abo#e.
,2.=& after the death of his father& sold his inheritance though its amount has not yet been determined to "& for a consideration of <()& ))). a. The contract is #alid only if the inheritance #alued at least eual or more than ()& ))) b. The contract is rescissible. c. The contract is #alid e#en though nothing remains of the inheritance to be turned o#er to ". d. ontract is #oid& future inheritance cannot be the object of sale. ,$.=& alleged that C promised to gi#e = one hectare of land. This is in consideration CGs meritorious ser#ices to C. C pleads in defense that since the promise !as not in !riting& it is unenforceable under the Statute of rauds. @ecide. a. The promise is unenforceable because it is not in !riting b. The Statute of rauds is applied because A has rendered ser#ices c. The Statute of rauds can apply to partially e+ecuted contract. d. The Statute of rauds is inapplicable here& because the promise to gi#e the land is not a sale of really property. ,,.Statement o. 1: 4n #oidable contracts& there is no need to ratify same before they can be considered #alid. 4n unenforceable contracts& ho!e#er rati'cation is mandatory before they can be considered enforceable. Statement o. 2: There is undue inOuence if insidious !ords or machinations !ere employed by a party on the other just to obtain the latterGs consent& !ithout !hich the latter !ould not ha#e entered into contract. a. "oth are true c. o. 1 is true> o. 2 is false b. "oth re false d. o. 1 is false> o. 2 is true ,(.Three of the follo!ing are #oid contracts. hich is the e+ception a. ontracts !here the cause is immoral b. ontracts to pre#ent a kno!n supporter of a political ri#al from #oting for his candidate for a #aluable consideration c. ontracts !ith #alid consideration but !ith unla!ful moti#es d. Absolutely simulated contracts ,3.Statute of rauds is applicable to a. ontract not to be performed !ithin a year from the making thereof b.
a. An action to enforce judicially a natural obligation prescribes in , years b. An action to declare a contract #oid is not subject to prescription c. An action for annulment of contract is imprescriptible d. An action for rescission of contract prescribes in '#e E(F years counted from the e+ecution of the contract. ,8." fraudulently induces S to sell to him E"F a masterpiece painting for <1)& ))). Subseuently& " sold it to = for <12& )))& a good faith purchaser. S is entitled to a. ?escind the contract !ith " plus damages b. ?eco#er the painting from = but no damages c. ?eco#er damages from " d. ?escind the contract bet!een " and = ,;.hich of the follo!ing contracts is not rescissible a. Those !hich are entered into by guardians !hene#er the !ards !hom they represent su0er a lesion of more than N of the #alue of the object of the contract. b. Those !here one of the parties is incapable of gi#ing consent to a contract. c. Those e+ecuted in representation of an absentee& if the latter su0er a lesion of more than N of the #alue of the object of the contract. d. Those undertaken in fraud of creditors !hen the latter cannot in any other manner collect the claims due them. e. Those !hich refer to things under litigation if they ha#e been entered into by the defendant !ithout the kno!ledge and appro#al of the litigants or of competent judicial authority. ().hen there is concurrence acceptance& there is a.
of
o0er
and
PARTNERSHIP
1. ommon
<112&))). 4f @ is the only creditor& @ can collect from A& a. 3&))) b. 12&))) c. ,&))) d. 8&))) $. 6ne or more but less than all the partners ha#e no authority to perform the follo!ing acts& e+cept: a. @o any act !hich !ould make it impossible to carry on the ordinary course of business b. Submit a partnership claim or liability to arbitration. c. ?enounce a claim of the partnership d. on#ey partnership property in the ordinary course of business e. one of the abo#e ,. A& "& and are partners in A" ompany. @ introduced himself as a partner in A" ompany to =& !ho in the belief of such introduction& e+tended a <3)&))) credit to A" ompany. These facts are kno!n by A& !ho did not oppose. ho shall be liable to = a. Since = e+tended the credit tot the partnership& a partnership liability e+ists& thus& partners A& "& and @ are liable. b. 6nly A& !ho kno!s the transactions and @& are partners by estoppel and liable pro/rata to =. c. @ !ho represented himself as partner in A" ompany is liable. d. A and !ho bene'ted in the <3)&))) credit shall be liable to =. (. hich of the follo!ing contracts of partnership may not appear in a public instrument a. 7imited partnership b.
8. A& " and formed a limited partnership& !ith A as general partner& !hile " and as limited partners& !ith the follo!ing contributions: 1. A contribute a speci'c parcel of land 2. " to contribute <1)&)))& the 'rst <(&))) upon formation& and the last <(&)))& 1) days after formation. $. contributed a speci'c car as !as stated in the articles of partnership& !hen in fact it !as not contributed. 4f the partnership !as dispossessed of the land contributed by A after deli#ery to the partnership by the real o!ner& the e0ect !ill be: a. A is considered a debtor of the partnership b. A is considered a trustee of the land for and in behalf of the partnership c. The partnership !ill be dissol#ed d. A is to ans!er for !arranty against e#iction ;. 4n the preceding number& if " did not deli#er the last <(&))) to the partnership& the e0ect !ill be: a. " holds a trustee for in behalf of the partnership the <(&))) b. " is considered a debtor of the partnership of <(&))) plus interest !ithout the need of a demand c. " may be e+pelled from the 'rm plus the damages incurred d. " is considered a debtor of the 'rm for <(&))) plus interest after a demand is made 1). A& " and are partners !here as a capitalist partner is engaged in the same business in !hich the partnership is engaged in. 4n this situation& a. the partnership may oust from the partnership and at the same time a#ail of Gs pro't in her separate business b. the partnership may oust from the partnership c. the partnership may a#ail of Gs pro'ts in her separate business d. the partnership has nothing to do !ith since it is her right to engage in any business 11. Antonio is an industrial partner. "esides his ser#ice& he also contributed capital in the partnership. There is no agreement or stipulation regarding pro't or losses. *is share on the partnership pro't is: a. @epends upon the agreement of the other partners b.
The deceased partnerGs The deceased The partnership e+ecutor !ould partnerGs estate !ould be automatically become !ould be free from dissol#ed automatically a partner any partnership liability a. Ces Ces Ces b. Ces o o c. o Ces o d. o o Ces 1$. A& " and !ish to go into the business together to bottle mineral !ater. Bach contributed <()&))) but !anted to limit his liability to the e+tent of his contribution& and his name to appear in the partnership name. hich form of partnership as business organiJation should they choose a. Ieneral partnership b. 7imited partnership c. o partnership organiJation is a#ailable d. 7imited 1,. A& " and & capitalist partners& each contributed <$)&)))& <2)&)))and <1)&)))& respecti#ely> and @& the industrial partner contributed his ser#ices. Suppose =& a customer& is the creditor of the 'rm to the amount of <18)&))). *o! can = reco#er the <18)&))) a. = must sue the 'rm and get <3)&))) from all the partners including @& the industrial partner. = can still reco#er the balance of <12)&))) from the four partners& jointly. b. = can reco#er from the 'rm <3)&))). = can still reco#er the balance of <12)&))) from the capitalist partners only. c. = can reco#er from the 'rm <3)&))). = can still reco#er the balance of <12)&))) from any of the partners& solidary. d. = can reco#er from the 'rm <3)&))) and consider the balance of <12)&))) a loss. 1(. A partnership is dissol#ed: a. 4n contra#ention of the partnership agreement by the e+press !ill of any partner at any time. b. "y any e#ent !hich makes it unla!ful for the business of the partnership to be carried on or for the members to carry it on in the partnership. c. hen a speci'c thing !hich a partner had promised to contribute to the partnership perishes before its deli#ery to the partnership d. "y the loss of the thing& !hether before or after its deli#ery to the partnership& !hen the partner !ho contributed it ha#ing reser#ed the o!nership thereof& has only transferred to the partnership the use or enjoyment of the same.
e. All of the abo#e. 13. =& C and D are in partnership business. = contributed <1)&)))& C contributed <(&)))& and D his ser#ices only. After payment of partnership debts& !hat remains of the partnership assets is <3&))) only. 4n the absence of terms to the contrary& the share of D !ill be eual to: a. That of = b. 2&))) c. That of C d. othing 15. hen the manner of management has not been agreed upon& !ho shall manage the a0airs of the partnership a. apitalist partners b. 4ndustrial partners c. apitalist/4ndustrialist partners d. All of the partners e. one of the abo#e 18. As a general rule& a partner cannot ask for a formal accounting of the a0airs of the partnership during its e+istence and before it is dissol#ed& e+cept: a. hen he is !rongfully e+cluded from the partnership business b. hen the right e+ists under the terms of any agreement c. As pro#ided by the Article 18)5 d. hene#er other circumstances render it just and reasonable e. All of the abo#e 1;. Sometimes termed as a dormant partner: a. 7imited partner b. apitalist partner c. Secret partner d. one of the abo#e 2). B#ery contract of partnership ha#ing a capital of <$&))) or more in money or property shall appear in public instrument !hich must be recorded in the Securities and B+change ommission. ailure to comply !ith said reuirements a. !ill not a0ect the liability of the partnership and the members thereof to third persons b. !ill render the partnership #oid c. !ill not gi#e the partnership a legal personality d. !ill gi#e the partnership a de facto e+istence 21. A partner in a limited partnership cannot contribute a. ash b.
d.
2. Gs share in the surplus pro't $. -ay compel the other partners that heE=F becomes a partner = is correct as to !hich of these rights a. 1 and $ b. $ only c. 2 only d. 2 and $ 25. A and " are partners engaged in the real estate business& A learned that !as interested in buying a certain parcel of land o!ned by the partnership& e#en for a higher price. ithout informing "& A !as able to make " sell to him EAF his E"GsF share in the partnership. Then A sold the land at a higher pro't. a. A is liable to " for the latterGs share in the pro't. b. is liable to " for the latterGs share in the pro't. c. The partnership is dissol#ed !hen A become the sole o!ner. d. The sale of the land to is #oid is #oid since it !as !ithout the kno!ledge of ". 28. hich of the follo!ing may be a cause for in#oluntary dissolution a. B+press !ill of any partner b. 4nsol#ency of any partner c. Termination of the term d. B+pulsion of any partner 2;. The remedy of capitalist partners against an industrial partner !ho engaged in a business for himself !ithout the e+pressed permission from the partnership is: a. To compel the industrial partner to sell his interest to the said capitalist partners. b. To e+clude him from the sharing in the pro'ts in the partnership. c. To remo#e him as manager if he is appointed as manager of the partnership. d. To e+pel him from the partnership and claim for damages. $). -anagement of a partnership is usually conferred upon the a. -anager b.
e. one of the abo#e $2. A substituted limited partner is: a. a person is admitted as a partner by the other partners b. a buyer of right of the deceased partner c. an assignee admitted to all the rights of a limited partner d. all of the abo#e $$. A partnership ha#ing for its object determinate things& their use or fruits& or a speci'c undertaking& or the e+ercise of a profession or #ocation is called: a. "& <,)&)))> and & ser#ices. The partners agreed to di#ide pro'ts and losses in the follo!ing proportions: A& $(P& "& 2(P& and & ,)P. 4f there is a pro't of <1)&)))& ho! should the said pro't be distributed among the partners a. A& <3&)))> "& <,&)))> & othing b. A& <$&)))> "& <2&)))> & <(&))) c. A& <$&())> "& <2&())> & <,&))) d. A& <$&())> "& <$&())> & <$&))) e. one of the abo#e $3. A partnership is dissol#ed on the death of a: a. Ieneral partner b. 4ndustrial partner c. Ieneral/7imited partner d. 7imited partner e. one of the abo#e $5. 4n case of imminent loss of the business of a partnership& the follo!ing partners are reuired to gi#e additional contribution& e+cept: a. apitalist partner b. Ieneral partner c. apitalist/4ndustrialist partner d. 4ndustrial partner
$8. o#erage of Statute of rauds in a partnership contract& !hich is the e+emption a.
,$. Statement o. 1: The arri#al of the term of the partnership !ith a '+ed term or a period shall not dissol#e the partnership of the partners continue !ith the business of the partnership but such a partnership may be terminated anytime dependent in the !ill of the continuing partners. Statement o. 2: The general rule is that the loss of the speci'c thing contributed to the partnership dissol#es the partnership !hen only the use of the thing is contributed by the partner and such thing after itGs subseuently lost& the partnership is not dissol#ed. hich is correct a. "oth statements are false b. "oth statements are true c. 1 is true& 2 is false d. 1 is false& 2 is true ,,. hich of the follo!ing statement is correct concerning liability !hen a partner in a general partnership commits a tort !hile engaged in partnership business a. The partnership committing the tort is the only partly liable b. The partnership is the only partly liable c. The partners are jointly and se#erally liable d. one of the abo#e ,(. A limited partner shall not become liable as a general partner unless: a. *e takes part in the control of the business b. *e contributes his ser#ices to the capital of the 'rm c. *is surname appears in the partnership name d. The !ord “limited” is not added to the partnership e. All of the Abo#e ,3. A partner !hose connection is concealed and has no #oice nor say in the management of the a0airs of the partnership is called: a. ominal partner b. Secret partner c. Silent partner d. @ormant partner e. one of the abo#e ,5. Three of the follo!ing are rights of a partner. hich one is not a. ?ight to associate another person to his share. b. ?ight to admit another partner c. ?ight to inspect and copy partnership books d. ?ight to ask dissolution of the 'rm at the proper time. ,8. A partnership a. is created by mere agreement of the partners.
b. has a juridical personality separate and distinct from that of each of the partners. c. may be constituted in any form& e+cept& e+cept !here immo#able property or real rights are contributed thereto& in !hich case a public instrument shall be necessary. d. is dissol#ed by the death of a partner. e. All of the abo#e. ,;. Three of the follo!ing do not pro#e the e+istence of a #alid partnership. hich is the e+ception a. The sharing of gross receipts b. There is the intention of di#iding the pro'ts among themsel#es c. ?eceipts by a person of a share of the pro'ts for the payment of a partnership debt by installments d. hen t!o or more partners are co/o!ners and they share correspondingly in the pro'ts made from the sale or use of their property. (). an only be made !ith the consent of all partners: a. ai#er or compromise b. Sell euipment c. "orro! money d. one of the abo#e CORPORATION
1. hich of the follo!ing cannot be la!fully e+ercised by a non/stock corporation a.
c. legislati#e enactment. d. failure to organiJe formally and commence the transaction of its business !ithin t!o years from the date of incorporation. e. All of the abo#e. (. To re#oke the po!er granted to the board to make the by/la!s. a. -ajority #ote of the board and of the outstanding capital stock of the members b. 2K$ of the outstanding capital stock of the members. c. -ajority of the uorum of the board and 2K$ of the outstanding capital stock of the members. d. -ajority of the outstanding capital stock or of the members. 3. A corporate o9cer or director cannot take ad#antage their personal bene't in business opportunity !hich the corporation is 'nancially able to undertake. a. @octrine of corporate 'ction b. Trust fund doctrine c. @octrine of corporate opportunity d. @octrine of limited capacity e. one of the abo#e 5. 6ne of the follo!ing does not reuire stockholderGs appro#al. a. -erger or consolidation b. hange of corporate name c. 4n#estment of corporate funds for a purpose outside of the main purpose of the corporation d. @eclaration of cash di#idend 8. The reuired minimum authoriJed capital stock for stock corporation is: a. ot less than <(&))) b. 2(P must be subscribed and 2(P must be paid c. At least 2(P must be subscribed and at least 2(P must be paid and in no case shall it be less than <(&))) d. one
$. A bond secured by stocks or other bonds or both !hich are o!ned by the debtor& the securities being deposited !ith a trustee for the bondholder is called: a. -ortgage bond b. ollateral trust bond c. Buipment bond d. @ebenture bond e. one of the abo#e
;. hich of the follo!ing must be contained in a corporationGs Articles of 4ncorporation a. ames of stockholders b. ame of temporary treasurer c.
,. 4n#oluntary dissolution of the corporation is caused by a. an e+piration of the period for !hich it !as la!fully formed. b. judicial decree of forfeiture or by order of the SB.
1).Shares deposited by the seller or his agent !ith a bank or third party to be deli#ered to the buyer or subscriber only upon the ful'llment of the stipulated suspensi#e condition a.
b. ounders shares c. ?edeemable shares d. Bscro! shares 11. A corporation cannot be an incorporator in the
po!ers
of
a
1,.The right of pre/emption shall not apply: a. hen such pro't is denied in the corporate charter b. To share to be issued in compliance !ith the la!s reuiring stock o0ering or minimum stock o!nership by the public c. To share to be issued in good faith !ith the appro#al of the stockholders o!ning 2K$ of the outstanding capital stock in e+change for property needed for corporate purpose of a pre#iously contracted debt d. All of the abo#e e. one of the abo#e 1(.Mltra #ires act a. Acts !hich are beyond the po!ers e+pressly or impliedly conferred upon the corporation b. Mnenforceable c. -ay be rati'ed by the stockholders d. -ay not be attacked by competitors in business e. All of the abo#e 13.The di0erence of a pro+y and a #oting trust agreement is a.
15. A& "& & @ and B organiJed a corporation. An article of incorporation !as prepared& signed and ackno!ledge before a notary public and 'led !ith the SB. The corresponding certi'cate of incorporation !as issued. 4t turned out& ho!e#er& that A& " and are not residing in the
c. "oth 4 and 444 d. "oth 44 and 444 22. Suppose “=G orporation has an authoriJed capital stock of 1))&))) di#ided into 1))) shares of stock !ith par #alue of 1)) each Subscribers: A L 1)) shares and paid 8&))) " L 13) shares and paid 1)) L 2() shares and paid ,&))) @ L () shares and paid (&))) B L 2)) shares and paid 3)) hich of the follo!ing subscription !ill ualify the letter " is true b. "oth ans!er are false c. 7etter A is true> letter " is false d. "oth ans!ers are true 2(. Suppose that “=” orporation has already issued the 1))) originally authoriJed shares of the corporation so that its board of directors and stockholders !ish to increase “=Gs” authoriJed capital stock. After complying !ith the reuirements of the la! on increase of capital stock& “=” issued an additional 1))) shares of the same #alue. “S” presently holds 2)) shares out of the original 1))) shares. hich of the follo!ing statement is true a. “S” must be o0ered eui#alent 2)) shares under his pre/empti#e right of stated in the articles of incorporation
b. Such preempti#e right shall only be gi#en if it is stated in the by/la!s of the corporation. c. The increased in share must be o0ered 'rst to the stock/holders of record under the “doctrine of 'rst refusal”. 4f they refuse it !ill be o0ered to the general public. d. 4f e#er there is a preempti#e right& the same must be e+ercised !ithin a reasonable time as '+ed by the board of directors if the articles and theby/la!s are silent. 23. b. ree and ready transferability or o!nership of shares c. Subser#ience of minority stockholders to the !ishes of the majority subject only to euitable restraints d. The shareholders are not liable for the debts of the business. 28. 4n the matter if managing the business if the corporation& the e+ercise if corporate po!er and handling of corporate properties& this is supreme: a. 2K$ appro#al of the stockholders of the corporation b. -ajority #ote of the outstanding capital stockholders of the corporation c. -ajority #ote of the "oard of @irectors d. The president of the corporation 2;.To adopt by/la!s a. -ajority of the outstanding capital stock or of the members b. -ajority #ote of the board and of the outstanding capital stock or of the members c. 2K$ of the outstanding stock or of the members
d. -ajority #ote of the board and 2K$ of the outstanding capital stock or of the members. $). 4n no case shall the total yearly compensation of directors e+ceeds. a. (P of the net income before income ta+ during the preceding year b. 1)P of the net income before income ta+ during the preceding year c. 1)P of the net income after income ta+ during the preceding year d. 1)P if the net income before income ta+ during the current year $1. Statement no. 1: @irectors can attend and #ote by pro+y at board meetings. Statement no. 2: The articles of incorporation may e+pressly pro#ide that redeemable shares by a corporation may be purchased upon the e+piration of a '+ed period& regardless of the e+istence of unrestricted retained earnings in the books of the corporation. a. "oth are true b. "oth are false c. o. 1 is true> o. 2 is false d. o. 1 is false> o. 2 is true $2. Three of the follo!ing statement are true> !hich is the e+ception a. ?edemption of redeemable stock is reuired e#en if the corporation at that time has no unrestricted earnings b. The reuirement that at least 2(P of authoriJed capital must be subscribed applies only to non/stock corporation c. @irectors are entitled to compensation as a matter of rights d. @eri#ati#es suits can be 'led only by dissenting stockholders.
$(. An action brought by a stockholder against the corporation for direct #iolation of his contractual rights a. ?epresentati#e suit b. 4ndi#idual suit c. @eri#ati#e suit d. orporate suit $3. To enter into management contracts& as a rule a. -ajority of the uorum of the board and majority of the outstanding capital stock or of the members of both the managing and managed corporations b. -ajority of the uorum of the board and 2K$ of the outstanding capital stock of the managed corporation c. -ajority #ote of the board and majority of the outstanding capital stock or of the members d. 2K$ of the outstanding capital stock or of the members. $5. Statement no. 1: The corporate po!ers of a corporation shall be e+ercised by the stockholders. Statement no. 2: The entire consideration recei#ed by the corporation for its nopar #alue shares shall be treated as capital and shall not be a#ailable for distribution as di#idends. a. "oth are true b. "oth are false c. o. 1 is true> o. 2 is false d. o. 1 is false> o. 2 is true $8. The stockholders or members mentioned in the articles of incorporation originally forming and composing the corporation and !ho are signatories thereof are called a. 4ncorporators b.
$$. Shall constitute a uorum for the transaction of corporate business a. 2K$ of the number of directors or trustee b. -ajority of the directors or trustees present c. -ajority of the number of directors or trustee as '+ed in the articles of incorporation d. R of the number of directors or trustee
$;. Mnless the by/la!s pro#ide other!ise& !ritten notice of regular meetings shall be sent to all stockholders or record a. At least one day prior to the meeting b. At least t!o days prior to the meeting c. At least one !eek prior to the meeting d. At least t!o !eeks prior to the meeting
$,. To issue stock di#idends a. -ajority #ote of the board and 2K$ of the outstanding capital stock b. 2K$ of the outstanding capital stock c. -ajority of the outstanding capital stock d. -ajority of the uorum of the board and 2K$ of the outstanding capital stock.
,). hich of the follo!ing is true a. @elinuent stock can be #oted b. Mnpaid stock is necessary delinuent c. @elinuent stock cannot be sold at public auction d. Mnpaid stocks are entitled to payment of cash di#idend ,1. A corporation is a citiJen of
a. The state of the country !here its principal o9ce is situated b. The state country !here its principal business is situated c. The state or country !here it is incorporated d. The state or country of its controlling stockholders e. All of the abo#e ,2. Statement no. 1: the liability of the stockholders for the payment of corporate debts is limited to the #alue of the shares. Statement no. 2: the entire consideration recei#ed by the corporation for its nopar #alue share shall be treated as capital and shall not be a#ailable for distribution as di#idends. a. "oth are true b. "oth are false c. o. 1is true> o. 2 is false d. o. 1 is false> o. 2 is true ,$. Stocks !hich has been issued by a corporation as fully paid up !hen in fact it is not& because it has been issued as bonus or other!ise& !ithout any consideration at all& or for less than par& or for property& labor or ser#ices at an o#er#aluation. a. atered stocks b. 6#er issued stocks c. Treasury stocks d. ?edeemable stocks e. one of the abo#e ,,. hich of the follo!ing uali'cations is necessary in order that one may be elected secretary of the corporation
a. *e must be a citiJen and a resident of the
,8. A bond !hich is payable to a particular indi#idual !hose name is entered on the books of the corporation as the registered o!ner is called a. ?egistered bond b. oupon bond c. on#ertible bond d. Iuaranteed bond e. one of the abo#e ,;. The authoriJed capital stock of a proposed corporation is 1))&))) di#idend 1&))) shares !ith a par #alue of 1)) each. At least 2(&))) or 2() shares !as subscribed by 2( subscribers. To meet the minimum amount of subscription that must be paid a. 4t is enough that 2(P of the total subscription is paid& regardless of the amount paid by each indi#idual subscription b. Bach and e#ery subscriber must al!ays pay 2() !hich is 2(P of their indi#idual subscription c. Se#en of the subscribers paid 3&2() and the rest of the subscribers d. one of the abo#e (). The o!ners of share in stock corporation are called a. 4ncorporators b.
