Started on Thursday, January 14, 2021, 9202 AM

State Finished
Completed on Thursday, January 14, 2021, 10206 AM
Time taken 1 hour 3 mins
Grade 61.00 out of 100.00

Question 1
Complete Mark 1.00 out of 1.00

PD 957

a. The Condominium Buyer’s Protective Decree

b. The Subdivision and Realty Buyer’s Protective Decree

c. The Subdivision Buyer’s Protective Decree

d. The Subdivision and Condominium Buyer’s Protective Decree

Question 2
Complete Mark 0.00 out of 1.00

TRIUMPH Company, a partnership engaged in the buying and selling of the car spare parts, has for
its partners and their respective contributions the following: Tomas, P10,000.00; Ramon,
P20,000.00; Ignacio; P30,000.00; Urbano; P40,000.00; Marcos, P100,000.00; Pablo,
P200,000.00; and Hilario, P300,000.00. No one was appointed as manager of the partnership. In
the course of the operation of the partnership, Tomas proposed to buy car spare parts from
Dominion Motors, but his proposal was opposed by Ramon. A voting among the partners took place
and Ignacio, Urbano and Marcos sided with Tomas, while Pablo and Hilario sided with Ramon.

a. The group of Ramon, Pablo, and Hilario will prevail because they own the controlling interest.

b. None will prevail because no one was appointed as manager of the partnership.

c. The group of Tomas, Ignacio, Urbano and Marcos will prevail because they constitute the majority.
d. The partners will have to appoint a manager in order to resolve the conflict.
Question 3
Complete Mark 1.00 out of 1.00

Shareholders have no claim on corporate property as owners, but mere expectancy or inchoate right
to the same upon dissolution of the corporation after all corporate creditors have been paid.

a. Control Test

b. Doctrine of piercing the corporate veil

c. Granfather Rule

d. Doctrine of Separate Juridical Entity

Question 4
Complete Mark 1.00 out of 1.00

The New Central Bank Act is otherwise known as:

a. RA 1405

b. RA 7653

c. RA 3591

d. RA 6426

Question 5
Complete Mark 1.00 out of 1.00

Statement 1: An agent must have legal capacity to enter into the contract of agency, although he may
not have capacity to enter into the particular contract subject of agency. Statement 2: Juridical
persons such as corporations and partnerships can be principals only.

a. Only Statement 2 is true.

b. Both Statements are true.

c. Both Statements are false.

d. Only Statement 1 is true.

Question 6
Complete Mark 1.00 out of 1.00

This right involves the right of the unpaid seller to resume possession of the goods at any time while
they are in transit, and he will then become entitled to the goods as if he had never parted with the
possession.

a. Right of stoppage in transitu

b. Possessory Lien

c. Right of Retention

d. Right of Resell

Question 7
Complete Mark 1.00 out of 1.00

A type of corporation organized for a charitable purpose.

a. Educational Corporation

b. Eleemosynary Corporation

c. Close Corporation

d. Private Corporation

Question 8
Complete Mark 1.00 out of 1.00

It is a type of a corporation wherein sshareholders are limited to selected persons or members of a

family.

a. Educational Corporation

b. Eleemosynary Corporation

c. Private Corporation

d. Close Corporation
Question 9
Complete Mark 0.00 out of 1.00

The Place of delivery can be the place stipulated. If there is none, it should be made at:

a. Seller's place of business

b. Place fixed by usage or trade

c. Place of business of the vendee

d. Residence of the vendor

Question 10
Complete Mark 1.00 out of 1.00

It is a delivery of the thing by mere agreement.

a. Tradition Constitutum Possessorium

b. Tradition Brevi Manu

c. Symbolic Delivery

d. Tradition Longa Manu

Question 11
Complete Mark 1.00 out of 1.00

If the illegal contracts between the parties is a criminal offense and both parties are guilty (in pari
delicto. , such illegal contract shall produce the following effects, except:

a. The parties may recover what they have given if it is not illegal in itself.

b. The effects and instruments of the crime will be confiscated in favor of the government.

c. Both parties shall be criminally prosecuteD.

d. The parties shall have no right of action against each other.

Question 12
Complete Mark 1.00 out of 1.00

Under Maceda Law, if the contract is cancelled, the buyer shall be entitled to the refund of the cash
surrender value of the payments on the property equivalent to_____of the total payments made.

a. 90%

b. 5%

c. 10%

d. 50%

Question 13
Complete Mark 0.00 out of 1.00

A contract by which one of the parties delivers to another, something consumable so that the latter
may use the same for a certain time and return it, upon the condition that the same amount of the
same kind and quality shall be paid.

a. Contract of Pledge

b. Contract of Commodatum

c. Contract of Mutuum

d. Contract of Loan

Question 14
Complete Mark 1.00 out of 1.00

Who among the following is the holder of a negotiable instrument originally payable to order?

a. The indorsee who has the negotiable the instrument

b. The possessor of the instrument to whom the instrument was delivere without any endorsement

c. The original payee who has negotiable instrument

d. The indorsee who is in possession of the instrument

Question 15
Complete Mark 1.00 out of 1.00

A holder is not deemed a holder in due course, except:

a. Where a postal money order is delivered to Ryan, the holder.

b. When instrument is payable on demand is negotiated payable on demand is negotiated in an unreasonable length of time after its
issue.
c. Where instrument taken by a holder, who has not yet paid anything, and he receives notice of infirmity in the instrument.

d. Where a holder took instrument for value and in good faith.

Question 16
Complete Mark 1.00 out of 1.00

An assent to become owner of the specific goods when delivery of them is offered to the buyer.

a. Ownership

b. Delivery

c. Acceptance

d. Waiver

Question 17
Complete Mark 0.00 out of 1.00

In exercising the right to redeem, the redemptioner may go to the court directly, and practically
make the offer to repurchase through it.

a. Consignation

b. Redemption

c. Payment
d. Tender of Price
Question 18
Complete Mark 1.00 out of 1.00

A stipulation whereby the thing pledged or mortgaged or under antichresis shall automatically
become the property of the creditor in the event of nonpayment of the debt within the term fixed is
known as ___________________which is forbidden by law and declared null and void.

a. Pactum Commissorium

b. Precarium

c. Ordinary mutuum

d. Equitable Mortgage

Question 19
Complete Mark 0.00 out of 1.00

The partnership will bear the risk of the loss of three of the following things. Which is the exception?

a. Things contributed so that only their use and fruits will be for the common benefit.

b. Things contributed to be sold.

c. Fungible things or those that cannot be kept without deteriorating.

d. Things brought and appraised in the inventory.

Question 20
Complete Mark 1.00 out of 1.00

When the deposit is gratuitous, it is a ________ contract because only the depositary
_(depositorio)_has an obligation

a. unilateral

b. bilateral

c. principal

d. secondary
Question 21
Complete Mark 1.00 out of 1.00

Pesayco, a partner in an oral partnership for the catching of fish, with cash as the only contributions
thereto, refused to account for the proceeds of the firm on the ground that the agreement was not in
writing. Is he correct?

a. No, because the oral partnership is valid, real properties not having been contributed

b. Yes, since the partnership was orally made and is therefore void and inexistent from the very beginning

c. Yes, since the partnership must be made in a public instrument

d. No, because the partnership must be made in a private instrument

Question 22
Complete Mark 0.00 out of 1.00

All of the following are characteristics of a condition, except:

a. It may refer to the future.

b. It may or may not happen.

c. It merely fixes the time for the demandability of an obligation.

d. It may refer to a past event unknown to the parties.

Question 23
Complete Mark 1.00 out of 1.00

Which of the following is not a right of a holder in due course?

a. He can enforce payment of the instrument for the full amount thereof against all parties liable thereon.

b. He can hold the instrument free from real defenses.

c. He can hold the instrument free from defect of title of prior parties.

d. He can hold the instrument free from personal defenses.

Question 24
Complete Mark 1.00 out of 1.00

A suspensive condition dependent solely on the will of the debtor is:

a. Void

b. Rescissible

c. Valid

d. Voidable

Question 25
Complete Mark 1.00 out of 1.00

It is contract wherein a person binds himself to render some service or to do something in

representation or on behalf of another, with the consent or authority of the latter

a. Contract of Partnership

b. Contract of Loan

c. Contract of Agency

d. Contract of Sale

Question 26
Complete Mark 0.00 out of 1.00

Which of the following statement pertaining to treasury shares is incorrect?

a. Treasury shares, once disposed of, entitle the purchaser or transferee the right to vote.

b. Treasury shares are not entitled to dividends

c. Treasury shares are not part of subscribed capital stock.

d. Treasury shares may be disposed of at a price lower than the par or issued price provided it is reasonable and approved by the
board of directors.
Question 27
Complete Mark 1.00 out of 1.00

The ownership is not transferred but the property is merely subject to a charge or lien as security for
the compliance of a principal obligation, usually a loan;

a. Pacto de Retro

b. Mortgage

c. Cession

d. Dacion en Pago

Question 28
Complete Mark 0.00 out of 1.00

A partnership formed for the exercise of a profession which is duly registered is an example of:

a. Universal partnership of profits.

b. Partnership by estoppel.

c. Universal partnership of all present property.

d. Particular partnership.

Question 29
Complete Mark 1.00 out of 1.00

The following statements pertaining to the power of a corporation to issue non-voting shares are
presented to you for evaluation: I. Those classified as “redeemable” or “preferred” may be deprived
of the voting right. II. All shares of the corporation may be deprived of the voting right. III. Non-
voting shares may vote in certain corporate acts such as in the amendment of the articles of
incorporation.

a. I and III are true.

b. II and III are true.

c. I and II are true.

d. All statements are true.

Question 30
Complete Mark 0.00 out of 1.00

TRIUMPH Company, a partnership engaged in the buying and selling of the car spare parts, has for
its partners and their respective contributions the following: Tomas, P10,000.00; Ramon,
P20,000.00; Ignacio; P30,000.00; Urbano; P40,000.00; Marcos, P100,000.00; Pablo,
P200,000.00; and Hilario, P300,000.00. No one was appointed as manager of the partnership. In
the course of the operation of the partnership, Tomas proposed to buy car spare parts from
Dominion Motors, but his proposal was opposed by Ramon. Assuming that when the voting took
place, Marcos abstained, Ignacio and Urbano sided with Tomas, while Pablo and Hilario sided with
Ramon.

a. The partners will have to appoint a manager in order to resolve the conflict.

b. None will prevail because no one was appointed as manager of the partnership.

c. None will prevail because the voting was equal.

d. The group of Ramon, Pablo and Hilario will prevail because they own the controlling interest.

Question 31
Complete Mark 1.00 out of 1.00

It is an artificial being created by operation of law, having the right of succession and the powers,
attributes, and properties expressly authorized by law or incident to its existence.

a. Corporation

b. Agency

c. Association

d. Company

Question 32
Complete Mark 0.00 out of 1.00

This right is not available if the transfer of ownership is by gratuitous title.

a. Conventional Redemption

b. Legal Redemption

c. Dacion en Pago

d. Pacto de Retro
Question 33
Complete Mark 0.00 out of 1.00

Alma entered into a contract with Ben whereby Ben not to testify in a criminal case filed against
Alma in exchange for P100,000.00 to be given by AlmA. The contract between Alma and Ben is:

a. Void for being contrary to law.

b. Void for being contrary to good customs.

c. Is valid because one can choose not to testify against another in a crime.

d. Void for being contrary to public policy.

Question 34
Complete Mark 1.00 out of 1.00

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. The innocent party cannot recover what he has given.

c. The instruments shall be confiscated in favor of the government.

d. Neither party may compel the other to comply with his undertaking.

Question 35
Complete Mark 1.00 out of 1.00

The refund on Cash Surrender Value, if made after 5 years of installments, the buyer is entitled to an
additional______ every year but not to exceed_____ of the total payments made.

a. 10% ; 90%

b. 50% ; 10%
c. 5% ; 90%

d. 5% ; 50%
Question 36
Complete Mark 1.00 out of 1.00

It is an artificial being created by operation of law, having the right of succession and the powers,
attributes, and properties expressly authorized by law or incidental to its existence.

a. Joint Venture

b. Cooperative

c. General Partnership

d. Corporation

Question 37
Complete Mark 0.00 out of 1.00

TRIUMPH Company, a partnership engaged in the buying and selling of the car spare parts, has for
its partners and their respective contributions the following: Tomas, P10,000.00; Ramon,
P20,000.00; Ignacio; P30,000.00; Urbano; P40,000.00; Marcos, P100,000.00; Pablo,
P200,000.00; and Hilario, P300,000.00. No one was appointed as manager of the partnership. In
the course of the operation of the partnership, Tomas proposed to buy car spare parts from
Dominion Motors, but his proposal was opposed by Ramon. Assuming that when the voting took
place, Marcos abstained, Ignacio and Urbano sided with Tomas, while Pablo and Hilario sided with
Ramon.

a. The partners will have to appoint a manager in order to resolve the conflict.
b. The group of Ramon, Pablo and Hilario will prevail because they own the controlling interest.

c. None will prevail because no one was appointed as manager of the partnership.
d. None will prevail because the voting was equal.

Question 38
Complete Mark 1.00 out of 1.00

This right is available to the seller and notwithstanding that he may be in possession of the goods as
agent or bailee for the buyer where the goods have been sold without any stipulation as to credit.

a. Right of Stoppage

b. Right of Resell
c. Right to rescind sale

d. Possessory Lien
Question 39
Complete Mark 1.00 out of 1.00

When the deposit is ____________, it is a unilateral contract because only the depositary
_(depositorio) _has an obligation. But when the deposit is for compensation, the juridical relation
created becomes bilateral because it gives rise to obligations on the part of both the depositary and
depositor _(depositante)_.

a. optional

b. bilateral

c. mandatory

d. gratuitous

Question 40
Complete Mark 0.00 out of 1.00

A contract of sale can be:

a. Always absolute
b. Both absolute and conditional

c. Never conditional

d. Neither absolute nor conditional

Question 41
Complete Mark 0.00 out of 1.00

An instrument is rendered non-negotiable if

a. There is an indication of a particular fund out of which reimbursement is to be made.

b. The instrument is payable out of a particular fund.

c. Answer not given.

d. There is an indication of a particular account to be debited with the amount.

Question 42
Complete Mark 0.00 out of 1.00

These shares may be issued by the corporation when expressly provided in the articles of
incorporation. They are shares which may be purchased by the corporation. They are shares which
may be purchased by the corporation from the holders of such shares upon the expiration of a fixed
period, regardless of the existence of unrestricted retained earnings in the books of the corporation,
and upon such other terms and conditions stated in the articles of incorporation and the certificate
of stock representing the shares, subject to rules and regulations issued by the Commission.

a. Preferred Shares
b. Redeemable Shares

c. Treasury Shares

d. Founder’s Shares

Question 43
Complete Mark 1.00 out of 1.00

The following are attributes of a Corporation except:

a. Can be awarded of moral damages because it has reputation to protect.

b. Has the powers, attributes and properties expressly authorized by law or incident to its existence

c. Has the right of succession.

d. An Artificial Being

Question 44
Complete Mark 0.00 out of 1.00

M issues a promissory note payable to P or bearer. Which of the following is not correct?

a. If P negotiates the note to A by delivery and A indorses it to B, B may negotiate the note to C by delivery.

b. If indorsed by P to A and A also indorses it to B, B may negotiate the note to C by delivery.

c. If indorsed by P to A and A also indorses it to B, and B negotiates the note to C by delivery, A is liable to B and C.
d. If indorsed by P to A and A also indorses it to B, P is liable to A and B.
Question 45
Complete Mark 1.00 out of 1.00

The defective contracts arranged according to the degree of their defectiveness from the least
defective to the most defective are:

a. Voidable, rescissible, unenforceable, and void contracts.

b. Rescissible, voidable, unenforceable and void contracts.

c. Rescissible, unenforceable, voidable, and void contracts.

d. Unenforceable, rescissible, voidable, and void contracts.

Question 46
Complete Mark 0.00 out of 1.00

It requires the delivery by the debtor of the property given as security to the creditor

a. Accessory Contract
b. Antichresis

c. Pledge
d. Formal Contract

Question 47
Complete Mark 0.00 out of 1.00

The right which the vendor reserves to himself, to reacquire the property sold provided he returns to
the vendee the price of the sale

a. Equitable Redemption

b. Conventional Redepmtion
c. Repossession

d. Reacquisition
Question 48
Complete Mark 1.00 out of 1.00

It is a sworn statement attesting to the fact that the mortgage is made for the purpose of securing the
obligation specified in the conditions thereof, and for no other purpose, and that obligation is a just
and valid obligation, and one not entered into for the purpose of fraud.__ _

a. Extra Judicial Foreclosure

b. Affidavit of Deficieny

c. Affidavit of Good Faith

d. Judicial Foreclosure

Question 49
Complete Mark 1.00 out of 1.00

If the thing is lost by fortuitous event, the risk is borne by the owner of the thing at the time of the
loss under the principle of:

a. Red Perit Domino

b. Res Perit Dominion

c. Res Perit Domino

d. Res Peritik Domino

Question 50
Complete Mark 1.00 out of 1.00

These are shares which have been issued and fully paid for, but subsequently re-acquired by the
issuing corporation by purchase, redemption, donation or through some other lawful means.

a. Watered Stocks

b. Treasury Shares
c. Voting Shares

d. Capital Stock
Question 51
Complete Mark 0.00 out of 1.00

It is the right which the vendor reserves to himself, to reacquire the property sold provided he
returns to the vendee the price of the sale, the expenses of the contract, any other legitimate
payments made therefor and the necessary and useful expenses made on the thing sold, and fulfills
other stipulations which may have been agreed upon.

a. Equitable Mortgage
b. Legal Redemption

c. Conventional Redemption
d. Vendor's Right

Question 52
Complete Mark 1.00 out of 1.00

Sale or financing of real estate on installment payments, including residential condominium

apartments, but excluding industrial lots, commercial buildings, and sales to tenants

a. PD 957

b. Maceda Law

c. Recto Law

d. RA 3844

Question 53
Complete Mark 0.00 out of 1.00

Under Recto Law, the remedies of exact fulfilment of the obligation, cancellation of sale and
foreclosure of chattel mortgage may be exercised:

a. Continuously

b. Cumulatively

c. Alternatively
d. Simultaneously
Question 54
Complete Mark 1.00 out of 1.00

An accepted unilateral promise to buy or sell supported by a consideration distinct from the price.

a. Option Money

b. Contract of Sale

c. Earnest Money

d. Contract to Sell

Question 55
Complete Mark 0.00 out of 1.00

Statement 1: One who acts through an agent in law does the act himself. Statement 2: In an agent-
principal relationship, the personality of the principal is extended through the facility of the agent

a. Only Statement 2 is true.

b. Both Statements are true.

c. Both Statements are false.

d. Only Statement 1 is true.

Question 56
Complete Mark 0.00 out of 1.00

GREAT Company, a partnership engaged in the distribution of generators, is composed of George,

Roland, Edmond, Albert and Troy. George is the managing partner. During the month of April, the
following transactions were entered into by the following partners in behalf of the partnership
without any authority: I. The sale of a generator by Roland to Juan Torres who was not aware that
Ronald had no authority. Juan Torres has paid for the generator which is due for delivery. II. The
purchase of a car by Edmond from Intrepid Motors whose owner was not aware of Edmond’s lack of
authority. The car and the price are due for delivery and payment, respectively. Based on the
foregoing, the partnership is bound by:

a. Transaction II only.

b. Both Transactions I and II.

c. Transaction I only.

d. Neither Transaction I nor II.

Question 57
Complete Mark 1.00 out of 1.00

In _____________ the excess of the price belongs to the creditor, unless there is a stipulation that
it shall be turned over to the debtor.

a. Legal Pledge
b. Real Mortgage

c. Conventional Pledge
d. Equitable Mortgage

Question 58
Complete Mark 0.00 out of 1.00

Sibal, Untalan, Pareño, Eusebio, and Rances are partners is SUPER Enterprises whose business is
car painting and repairs. All partners are capitalist partners with Sibal as manager. After five years
of operations, Rances resigned from the partnership. Although Sibal was aware of the resignation of
Rances, he still bought 50 gallons of car paint from Masterpaint owned by Marcelo who had been
dealing with SUPER for the past 5 years, and car spare parts from Supremeparts, owned by Salveijo
who was transacting for the first time with SUPER. The dissolution of SUPER was published in the
Manila Bulletin but neither Marcelo nor Salviejo read it. Neither one knew at the time they
transacted with Sibal that the partnership had been dissolved.

a. SUPER is liable to Masterpaint only.

b. BSUPER is not liable to both Masterpaint and Supremeparts.

c. SUPER is liable to both Masterpaint and Supremeparts.

d. SUPER is liable to Supremeparts only.

Question 59
Complete Mark 0.00 out of 1.00

Th ownership is transferred but the ownership is subject to the condition that the seller might
recover the ownership within a certain period of time

a. Dacion en pago

b. Cession

c. Pacto de Retro
d. mortgage
Question 60
Complete Mark 0.00 out of 1.00

A payee may be a holder in due course. B. A drawee may be a holder in due course.

a. Both statements are true.

b. Both statements are false.

c. Only statement B is false.

d. Only statement A is true.

Question 61
Complete Mark 1.00 out of 1.00

The legal right to a property having no physical existence, e.g. shares of stock, credit, patent rights,
etc.

a. Corporeal Property
b. Incorporeal Property

c. Incorporate Property
d. Corporate Property

Question 62
Complete Mark 1.00 out of 1.00

They are stocks issued for a consideration less than its par or issued value or for a consideration in
any form other than cash, valued in excess of its fair value.

a. Capital Stock

b. Voting Shares
c. Treasury Shares

d. Watered Stocks
Question 63
Complete Mark 1.00 out of 1.00

The following are the powers of the BSP Monetary Board, except:

a. Ensures deposits of all bankswhich are entitled to the benefits of insurance.

b. Direct the management, operations, and administration of Bangko Sentral, organize its personnel and issue such rules and
regulations as it may deem necessary or desirable for this purpose.
c. Issue rules and regulations it considers necessary for the effective discharge of the responsibilities and exercise of the powers
vested in it.
d. Establish a human resource management system which governs the selection, hiring, appointment, transfer, promotion, or
dismissal of all personnel.

Question 64
Complete Mark 1.00 out of 1.00

PATOK Enterprises, a partnership engaged in the business of renting out video films, is owned by
Patricia, Alice, Tina, Olga and Kaye, with Kaye as the manager. Diana, owes PATOK Enterprises
P6,000.00 and Olga, P4,000.00. Both debts are unsecured and are already due. Diana pays Olga
P4,000.00 for which Olga issues her own receipt.

a. The payment should be divided proportionately between PATOK and Olga, at P2,400.00 and P1,600.00 respectively.

b. The payment should be applied to PATOK’s credit.

c. The payment should be applied to Olga’s credit only.

Question 65
Complete Mark 0.00 out of 1.00

A and B entered into a universal partnership of profits. Subsequently, A won 1st prize in the
sweepstakes. Will the money belong to the partnership?

a. No, even if A willingly contributes it to the partnership

b. No, because it was not acquired by industry or work

c. Yes, since in a universal partnership of profits, it doesn’t matter if it was acquired by A’s industry or work all subsequently
acquired cash or property belong to the partnership by default
d. Yes, because it was acquired by A’s industry or work
Question 66
Complete Mark 0.00 out of 1.00

Gregory, Edmond and Mark are partners in GEM Company with contributions of P10,000.00,
P40,000.00 and P50,000.00, respectively. Their agreement shows that they will share in the profits
in the ratio of [Link]. During the year, the partnership sustained a loss of P9,000.00. How shall this
loss be divided among the partners?

a. The partners must establish first a loss sharing agreement before the loss may be divided because they failed to have an
agreement on the division of loss.
b. Gregory, P900,00; Edmond, P3,600.00; and Mark, P4,500.00.

c. Equally at P3,000.00 each.

d. Gregory, P2,000.00; Edmond, P3,000.00; and Mark, P4,000.00.

Question 67
Complete Mark 0.00 out of 1.00

Statement 1: Delivery to a Common Carrier is tantamount to delivery to the buyer even if Seller
reserved title by the form of the bill of lading, with intent to remain the owner, not merely for the
purpose of securing payment. Statement 2: Delivery to the courier or carrier is tantamount to
delivery to buyer except When seller bears the expenses of transportation up to the 'Freight on
Board' point.

a. Only statement 2 is true.

b. Both statements are true.

c. Only statement 1 is true

d. Both statements are false.

Question 68
Complete Mark 0.00 out of 1.00

Which statement is FALSE?

a. An example of "Symbolic Delivery" is the delivery of keys of the place or depositary where the movable is stored or kept.

b. Unless otherwise agreed, when symbolic delivery has been made, the seller is not obliged to remove tenants to place the buyer in
actual possession of the property as he has already complied with his obligation to transfer ownership of and deliver the thing
sold.
c. Actual delivery is deemed made in a contract of sale when the thing sold is placed in the control and possession of the vendor.
d. Control over thing sold must be such that seller is capable of physically transferring it to buyer
Question 69
Complete Mark 1.00 out of 1.00

When the buyer, after delivery of goods, does any act inconsistent with the seller’s ownership, as
when he sells or attempts to sell the goods, or he uses or makes alteration in them in a manner
proper only for an owner.

a. Constructive Acceptance
b. Implied Acceptance

c. Express Acceptance
d. Actual Acceptance

Question 70
Complete Mark 1.00 out of 1.00

A document used in the ordinary course of business in the sale or transfer of goods, as proof of the
possession or control of the goods, or authorizing or purporting to authorize the possessor of the
document to transfer or receive, either by endorsement or by delivery, goods represented by such
document.

a. Contract of Loan
b. Negotiable Instrument

c. Bailment Contract
d. Documents of Title

Question 71
Complete Mark 1.00 out of 1.00

These are shares with a stated value set out in the Articles of Incorporation whose value will remain
the same regardless of the profitability of the corporation.

a. Redeemable Shares

b. Preferred Shares
c. Common Shares
d. Par value shares
Question 72
Complete Mark 1.00 out of 1.00

Dacion en pago and payment by cession are similar forms of payment. They are similar in which of
the following respects?

a. On the number of creditors involveD.

b. On whether the debtor is released completely from his obligations.

c. On the extent of the properties involved in the payment.

d. On the purpose of the payment.

Question 73
Complete Mark 1.00 out of 1.00

MARK Company, is a partnership engaged in the trading business, with Marquez, Alconcer, and
Ramos are capitalist partners, contributing P100,000.00, P60,000.00, and P40,000.00,
respectively. Kanapi is an industrial partner. The partners have a stipulation that Marquez shall not
be liable for partnership liabilities. After three years of continued losses, the partnership incurred
liabilities to P200,000.00 at which time its assets had dwindled to P140,000.00. After partnership
assets have been exhausted, partnership creditors may go after the separate asset of:

a. Alconcer and Ramos only.

b. All the partner.

c. Alconcer, Ramos and Kanapi, but not those of Marquez.

d. Marquez, Alconcer and Ramos, but not those of Kanapi.

Question 74
Complete Mark 0.00 out of 1.00

It includes pledge and mortgage because the purpose of guaranty may be accomplished not only by
securing the fulfillment of an obligation contracted by the principal debtor through the personal
guaranty of a third person but also by furnishing to the creditor for his security, property with
authority to collect the debt from the proceeds of the same in case of default.

a. Depositary

b. Suretyship
c. Guaranty
d. Mutuum
Question 75
Complete Mark 1.00 out of 1.00

A resolutory condition dependent solely on the will of the debtor is:

a. Voidable

b. Unenforceable

c. Valid
d. Void

Question 76
Complete Mark 0.00 out of 1.00

By the contract of loan, one of the parties delivers to another, either something not consumable so
that the latter may use the same for a certain time and return it, in which case the contract is called

a. Commodatum
b. Deposit

c. Loan Application
d. Mutuum

Question 77
Complete Mark 1.00 out of 1.00

In January 2014, Samson, 17 years old, sold his only car to Ben, 21 years olD. The sale was without
the knowledge of Glenda, the guardian of Samson. Assuming that an annulment case is filed today:

a. Annulment will not prosper, whoever may file it.

b. Samson may bring an action for annulment.

c. Glenda may bring the action for annulment.
d. Ben may bring the action for annulment
Question 78
Complete Mark 1.00 out of 1.00

It applies when a bank or a quasi-bank is in a state of continuing inability or unwillingness to

maintain a condition of liquidity deemed adequate to protect the interest of depositors and
creditors.

a. Conservatorship

b. Receivership

c. Insolvency

d. Liquidation

Question 79
Complete Mark 0.00 out of 1.00

Which of the following losses will not cause the dissolution of a partnership?

a. Loss after delivery of a specific thing where the partner contributed only its use and enjoyment, he having reserved the ownership
thereof.
b. Loss before delivery of a specific thing which a partner has promised to contribute to the partnership.

c. Loss of a specific thing after its delivery to and acquisition of its ownership by the partnership from the partner who contributed
the same.
d. Loss before delivery of a specific thing where the partner promised to contribute only its use and enjoyment, reserving the
ownership thereof.

Question 80
Complete Mark 1.00 out of 1.00

Stocks which are given preference by the issuing corporation in dividends and the distribution of
assets of the corporation in case of liquidation or such other preferences as may be stated in the AOI
which do not violate the Corporation Code.

a. Redeemable Shares

b. Common Shares
c. Preferred Shares

d. Par value shares

Question 81
Complete Mark 0.00 out of 1.00

Statement 1: The appointment of agency may be oral, unless the law requires a specific form.
Statement 2: As to the agent, acceptance must always be express.

a. Only Statement 2 is true.

b. Only Statement 1 is true.

c. Both Statements are true.

d. Both Statements are false.

Question 82
Complete Mark 1.00 out of 1.00

A party in a Contract of Commodatum who has the obligation to deliver the thing being loaned.

a. Obligee
b. Obligor

c. Bailee
d. Bailor

Question 83
Complete Mark 1.00 out of 1.00

Which of the following is non-negotiable?

a. I agree to pay B or order P10,000 on demand. (SgD. A.

b. I bind myself to pay B or bearer P10,000. (SgD. A.

c. I acknowledge being indebted to B in the amount of P10,000. (SgD. A.

d. I promise to pay to the order of B P10,000. (SgD. A.
Question 84
Complete Mark 0.00 out of 1.00

A contract by which one of the parties delivers to another, something not consumable so that the
latter may use the same for a certain time and return it.

a. Contract of Commodatum
b. Contract of Mutuum

c. Contract of Pledge
d. Contract of Loan

Question 85
Complete Mark 1.00 out of 1.00

The requisites for the exercise of the right of pre-emption or redemption are the following, except:

a. Piece of land sold must be so small and so situated that a major portion thereof cannot be used for any practical purpose within a
reasonable time
b. Urban land was bought by its owner merely for speculation

c. The one exercising the right must be an adjacent owner

d. When the land exceeds one (1) hectare

Question 86
Complete Mark 1.00 out of 1.00

It is a kind of contract wherein one of the contracting parties obligates himself to transfer the
ownership and to deliver a determinate thing, and the other to pay therefor a price certain in money
or its equivalent.

a. Obligations and Contract

b. Contract of Sale

c. Contract of Agency
d. Contract to Sell
Question 87
Complete Mark 1.00 out of 1.00

A corporation shall be considered a Filipino corporation if the Filipino ownership of its capital stock
is at least 60%, and where the 60-40 Filipinoalien equity ownership is NOT in doubt.

a. Granfather Rule
b. Control Test

c. Doctrine of piercing the corporate veil

d. Doctrine of Separate Juridical Entity

Question 88
Complete Mark 0.00 out of 1.00

Teresa, Olga, Pamela and Sonia, partners in TOPS Company Limited, a trading company, have
contributions of P50,000.00 each. Teresa and Olga are general partners; Pamela, a limited partner;
and Sonia, a general-limited partner. TOPS Company Limited purchased merchandise on credit
from Moret Sales Co. amounting to P180,000.00. On due date, however, TOPS Company Limited
was unable to pay. Accordingly, Moret Sales Co. filed a case of collection against the partnership
which by then had assets amounting to P150,000.00. From whom may Moret Sales Co. collect the
sum of P180,000.00?

a. The partnership for its assets of P150,000.00; thereafter, from Teresa and Olga at P15,000.00 each from their separate assets.
b. The partnership for its assets of P150,000.00; thereafter, from Teresa, Olga and Sonia at P10,000.00 each from their separate
property. However, Sonia can recover P5,000.00 each from Teresa and Olga.
c. Teresa, Olga and Sonia at P60,000.00 each. Thereafter, Sonia can recover from Teresa and Olga P30,000.00 each.
d. Teresa and Olga only at P90,000.00 each from their separate assets.

Question 89
Complete Mark 0.00 out of 1.00

It is the delivery of property of one person to another in trust for a specific purpose, with a contract,
express or implied, that the trust shall be faithfully executed and the property returned or duly
accounted for when the special purpose is accomplished or kept until the bailor reclaims it.

a. Deposit

b. Mutuum

c. Security
d. Bailment
Question 90
Complete Mark 1.00 out of 1.00

Which of the following statements is false concerning treasury shares?

a. They are not outstanding shares.

b. They may be disposed of for a price lower than the par value provided such price is reasonable.

c. They have no voting right.

d. They are entitled to dividends.

Question 91
Complete Mark 0.00 out of 1.00

Movable is delivered when the buyer had the thing already in his possession before the sale took
place, not as owner but as lessee, borrower, or depositary.

a. Tradition Brevi Manu

b. Tradition Longa Manu

c. Symbolic Delivery

d. Tradition Constitutum Possessorium

Question 92
Complete Mark 1.00 out of 1.00

Seller continues to be in possession of the property sold, by virtue of a lease contract agreement with
the vendee.

a. Symbolic Delivery

b. Tradition Longa Manu

c. Tradition Constitutum Possessorium

d. Tradition Brevi Manu

Question 93
Complete Mark 1.00 out of 1.00

The Law on Secrecy of Bank Deposits is otherwise known as:

a. RA 6426

b. RA 3591

c. RA 1405

d. RA 7653

Question 94
Complete Mark 0.00 out of 1.00

Demand on the surety is ________________ before bringing suit against them, since the
commencement of the suit is a sufficient demand. A surety is not even entitled, as a matter of right,
to be given notice of the principal’s default.

a. Mandatory

b. Necessary

c. Not necessary
d. Not mandatory

Question 95
Complete Mark 1.00 out of 1.00

A statement or representation made by the seller contemporaneously and as part of the contract of
sale, having reference to the character, quality, or title of the goods, and by which he promises or
undertakes to ensure that certain facts are or shall be as he then represents.

a. Waiver

b. Offer
c. Warranty

d. Condition
Question 96
Complete Mark 1.00 out of 1.00

A party in a Contract of Commodatum who has the obligation to return the thing being loaned.

a. Obligee

b. Bailor

c. Bailee

d. Obligor

Question 97
Complete Mark 1.00 out of 1.00

It applies when a bank is unable to pay its liabilities as they become due in the ordinary course of
business.

a. Conservatorship
b. Insolvency

c. Receivership

d. Liquidation

Question 98
Complete Mark 0.00 out of 1.00

An obligation ceases to be alternative and becomes a simple obligation in the following cases, except
when:

a. The right of choice has been expressly granted to the creditor and his choice has been communicated to the debtor

b. Among the several prestations that are due, only one is practicable.

c. The debtor has communicated his choice to the creditor.

d. Three prestations are due but one of them is unlawful or impossible.

Question 99
Complete Mark 1.00 out of 1.00

John, Albert and Wilfred are partners in JAW Enterprises. Not having established yet their credit
standing, the three partners requested Simon, a well-known businessman, to help them negotiate a
loan from Carlos, a money lender. With the consent of John, Albert and Wilfred, Simon represented
himself as a partner of JAW Enterprises. Thereafter, Carlos granted a loan of P150,000.00 to JAW
Enterprises. What kind of partner is Simon?

a. Ostensible partner.

b. Partner by estoppel.

c. Managing partner.
d. Liquidating partner.

Question 100
Complete Mark 1.00 out of 1.00

When concealment of facts comes with an active misstatement of fact or a partial statement of fact
such that withholding of that unsaid portion makes that which is stated absolutely false

a. False Representation

b. Implie Warranty

c. Express Warranty
d. Trader's Talk