BLR 211 (Final Examination)

EXAM PROPER (Q1 to Q10)

Choose the BEST LEGAL ANSWER by clicking the letter that corresponds to your answer. Good luck.

1. Dina bought a car from Jai and delivered a check in payment of the same. Has Dina paid the
obligation? Why?
1 point

A. No, not yet. The deliver/ of promissory notes payable to order, or bills of exchange or other mercantile
documents shall produce the effect of payment only when they have been cashed, or when through the
fault of the creditor they have been impaired.
B. Yes, because a check is a valid legal tender of payment.
C. It depends. If the check is a manager's check or cashier's check it will produce the effect of payment. If
it's an ordinary check, no payment.
D. Yes, because a check is as good as cash.

2. PS, who was abroad, phoned his brother, A, authorizing him to sell PS’s parcel of land in Pasay.
PS sent the title to A by courier service. Acting for his brother, A executed a notarized deed of
absolute sale of the land to B after receiving payment. What is the status of the sale?
1 point

A. Valid, since a notarized deed of absolute sale covered the transaction and full payment was made.
B. Void, since PS should have authorized agent A in writing to sell the land.
C. Valid, since A was truly his brother as PS’s agent and entrusted with the title needed to effect the sale.
D. Valid, since the buyer could file an action to compel PS to execute a deed of sale.

3. In a true pacto de retro sale, the title and ownership of the property sold are immediately vested
in the vendee a retro subject only to the resolutory condition of repurchase by the vendor a retro
within the stipulated period. This is known as
1 point

A. equitable mortgage.
B. conventional redemption.
C. legal redemption.
D. equity of redemption.

4. The liability of the partners, including industrial partners for partnership contracts entered into in
its name and for its account, when all partnership assets have been exhausted is
1 point

A. Pro-rata.
B. Joint.
C. Solidary.
D. Voluntary.

5. In relation to the rule of mutual agency of the partners, in a partnership which of the following is
not correct?
1 point

A. Partnership is liable to every partner for amounts disbursed on behalf of the partnership, plus interest,
from the time the expenses are made.
B. Unless otherwise agreed upon, all partners shall be considered agents and whatever any one of them
may do alone binds the partnership.
C. Anyone of the partners may make important alterations on the immovable property of the partnership.
D. Admission or representation made by a partner concerning partnership affairs is evidence against the
partnership.

6. When is solidary liability in partnership provided for by law?

1 point

A. If there is a tortuous act committed by a partner causing damage to third person

B. If it was the partnership that misapplied or misappropriated the money or property
C. If money was received by the agent of the partnership acting within the scope of his authority, but the
same was misapplied or misappropriated.
D. All of the above

7. A, B, and C formed a limited partnership. They named their partnership AB&C. In 2011, the firm
incurred an indebtedness of P5M. A suit was filed for the recovery of debt. Which of the following
statements is correct.
1 point

A. No partnership was constituted because the word “limited” was omitted in the partnership name
B. B and C as limited partners are liable only up to the extent of their contributions
C. All are liable as general partners
D. A, B and C are not liable because there was a defect in the formation of their partnership.

8. If a partnership has a capital of more than P3,000 and it is not registered, what is the status of
the contract?
1 point

A. Void
B. Voidable
C. It does not invalidate the same as among the partners so long as the contract has the essential
requisites
D. Unenforceable

9. Book Enterprises, Ltd. Is a partnership engaged in the book store business, with L, I, B, R, O as
partners. L is the only limited partner contributing P200,000. I contributed her services by managing
the firm, while B, R, O contributed P50,000, P100,000 and P150,000, respectively. The partners
have a stipulation that O shall not be liable for obligations of the partnership because of the
goodwill she brought to the business. Who among the partners may creditors go against for their
separate property after the partnership assets have been exhausted?
1 point

A. All of the partners

B. B and R only
C. I, B, and R only.
D. All of the partners, except L.
10. Without the written consent or ratification by all the limited partners, a general partner or all the
general partners, have no authority to perform any of the following acts, except to:
1 point

A. Admit a person as a general partner

B. Continue the business with partnership property on the death, retirement, insanity, civil interdiction or
insolvency of a general partner.
C. Admit a person as a limited partner.
D. Continue the business with partnership property on the death, retirement, insanity, civil interdiction or
insolvency of a limited partner.

Q11 to Q20
11. If a partnership composed of six (6) partners is formed as a Limited Partnership
1 point

A. All the partners must be limited partners

B. Three must be limited partners and three must be general partners
C. Five must be limited partners while one must be a general partner
D. It is enough that there is at least one limited partner and (or) at least one general partner.

12. Which of the following rights of a general partner is/are also the rights of a limited partner?
1 point

A. Right to inspect and copy partnership books at a reasonable hour.

B. Right to have on demand true and full information of all things affecting the partnership.
C. Right to have dissolution and winding up by decree of court.
D. All of the above.

13. Which of the following rights is a limited partner entitled to?

1 point

A. Grant a loan to the partnership.

B. Transact business with the partnership.
C. Either (a) or (b) or both (a) and (b)
D. Neither (a) nor (b) because a limited partner is prohibited from any business dealing with the partnership
except as regards the return of his contribution or the payment of compensation to him by way of income.

14. If there are several limited partners, which of the following may be agreed upon by the members
of the partnership?
1 point

A. Priority of one or some of the limited partners over the other limited partners as to the return of their
contributions.
B. Priority of one or some of the limited partners over the other limited partners as to their compensation by
way of income.
C. Either (a) or (b), or both of (a) and (b), or any other priority.
D. None of the foregoing since any agreement as to any priority is void because the limited partners must
have equal rights and privileges.

15. What is the effect of failure to substantially comply with the requisites established under Article
1844 (signing under oath of certificate of limited partnership and filing with the SEC)?
1 point
A. The legal personality of the limited partnership is not affected.
B. No partnership is formed.
C. The partnership is deemed a general partnership since the purpose of such requirement is to protect the
public.
D. The limited partners are liable only to the extent of their capital contribution as to third persons dealing
with the partnership.

16. A limited partner is not liable as a general partner to creditors who extend credit to the
partnership without knowledge that he is not a general partner
1 point

A. If a limited partner knowingly allows his surname to be included in the firm name
B. The limited partner’s surname is included in the firm name without any indication that it belongs to a
limited partner and it is not a surname of a general partner
C. Before his admission as a limited partner, the business of the firm had been carried on under a name
which included his surname.
D. None of the foregoing.

17. What is not an act of strict dominion that may be done by general partners even without the
consent or ratification of all the limited partners?
1 point

A. Being in attendance during meetings of the general partners.

B. Doing any act which would make it impossible to carry on the ordinary business of the partnership.
C. Possessing partnership property, or assigning their rights in specific partnership property for other than
partnership purpose
D. Admit a person as a limited partner

18. G, L and M are partners in Sunrise Motor Trading Co., Ltd. With G as general , L as limited
partner, and M as general-limited partner. The firm is engaged in the trading of used cars. M bought
on credit in behalf of the partnership a certain car for P200,000 from T. Which statement is not true.
1 point

A. The partnership is bound because M as a general-limited partner can perform acts of administration.
B. If the partnership has assets of only P140,000, T can go after such assets, and proceed against G and M
at P30,000 each for the balance of P60,000.
C. After their payment to T, M can go after G to recover the amount of P30,000 that he paid because among
the three partners.
D. M is a special kind of limited partner who can be held liable even for his separate properties.

19. Triple G Company, Ltd. Is composed of G1, G2 and G3 as general partners, and L as limited
partner. The firm owes C, a third person, P60,000, and L, P30,000. Which is not a true statement?
1 point

A. If the firm owns a certain lot, L cannot receive or hold such lot by way of mortgage, to secure his claim
against the partnership.
B. If the firm owns a certain lot, L can receive or hold such lot by way of mortgage, to secure his claim
against the partnership.
C. If the firm has assets of P70,000. L cannot receive any payment for his claim of P30,000 either from the
firm or from any of the three general partners because the firm’s remaining assets would only be P40,000,
which amount is not sufficient to pay the firm’s debt to C in the amount of P60,000.
D. If the firm owes C P60,000 and has assets of P70,000 including a receivable from L in the amount of
P30,000, L cannot obtain a release from his liability to the prejudice of C since the firm’s remaining assets
would only be P40,000.
20. Which is not a preferential right of one or some of limited partners?
1 point

A. Return of their contributions even if not mentioned in the certificate

B. Compensation by way of income
C. Preference in the payment of loans that limited partners have granted to the partnership
D. Return of their contributions even if stated in the certificate

Q21 to Q30
21. When may a partner who was appointed as manager in the articles of partnership be removed?
1 point

A. May be removed at anytime

B. May be removed with just or lawful cause by majority of the partners
C. May be removed for just and lawful cause by a vote of partners representing controlling interest.
D. May be removed by order of the court.

22. It is a gratuitous loan of a thing, to be used for a certain time and for a certain purpose, and with
the obligation to return the same thing after the time expires or the purpose accomplished.
1 point

a. Guaranty
b. Pledge
c. Commodatum
d. Mutuum

23. A contract by virtue of which one of the contracting parties delivers to the other money or any
other consumable thing subject to the condition that the same amount of the same kind and quality
be paid or returned.
1 point

a. Guaranty
b. Pledge
c. Commodatum
d. Mutuum

24. It is an accessory obligation whereby real property is offered as security for a debt or loan.
1 point

a. Real Estate Mortgage

b. Antichresis
c. Commodatum
d. Lease

25. It is an accessory obligation whereby personal property is offered as security for a debt.
1 point

a. Pledge
b. Chattel Mortgage
c. Pacto de Retro
d. Mutuum
26. The deposit of personal property by debtor with a creditor as security for payment of the debt.
1 point

a. Pledge
b. Chattel Mortgage
c. Pacto de Retro
d. Mutuum

27. A contract by virtue of which the creditor acquires the right to receive the fruits of an immovable
of his debtor with the obligation to apply them to the payment of the interest, if owing, and thereafter
to the principal of his credit.
1 point

a. Real Estate Mortgage

b. Antichresis
c. Commodatum
d. Lease

28. It is where the owner of the thing lends it gratuitously for use of the bailee for as long as the
bailor or owner pleases, however the latter may demand for its return at will.
1 point

a. Real Estate Mortgage

b. Antichresis
c. Precarium
d. Commodatum

29. A contract by which the parties exchange goods or commodities for other goods.
1 point

a. Contract for a Piece of Work

b. Commdatum
c. Barter
d. None of the above

30. It is the right of an adjacent owner of a parcel of land to buy the adjoining property before it is
offered for sale to others.
1 point

a. Legal Redemption
b. Conventional Redemption
c. Pre-emption
d. Condemnation

Q31 to Q40
31. A contract of sale is perfected when:
1 point

a. There is an offer to buy and also an offer sale

b. There is an offer to sell and an acceptance
c. There is a unilateral promise to buy or to sell
d. None of the above
32. If the object of the sale is totally lost before the perfection of the contract of sale:
1 point

a. The seller bears the loss

b. The buyer bears the loss
c. Both buyer and seller proportionately bear the loss
d. None of the above

33. The object of the sale is deemed lost when:

1 point

a. If it goes out of the commerce of man

b. It is declared illegal
c. It is stolen and it is already beyond recovery
d. All of the above

34. An action instituted by the vendee against the vendor to nullify the sale due to some vice or
defect of the object of sale which renders it unfit for the use intended is a:
1 point

a. Action for fraud

b. Redhibitory Action
c. Action Quanti Minores
d. None of the above

35. A Pacto de Retro Sale is deemed an Equitable Mortgage if:

1 point

a. The assessed price is unconscionably inadequate

b. The intent of the parties is only to use the thing as collateral
c. If there is a unilateral promise to sell
d. None of the above

36. A pacto de retro sale:

1 point

a. An absolute sale
b. A sale which gives the vendor the right to repurchase the object within a certain period of time.
c. A sale which is subject to the fulfilment of a condition
d. None of the above

37. A contract which is constituted from the moment a person receives a thing belonging to another
with the obligation of safely keeping it and retuning the same.
1 point

a. Deposit
b. Commodatum
c. Antichresis
d. None of the above

38. Another term of a deposit constituted by virtue of a court order.

1 point
a.Necessary Deposit
b. Voluntary Deposit
c. Sequestration
d. Escrow

39. A petition to be filed in order to obtain possession of a chattel before its actual foreclosure.
1 point

a. Attachment
b. Escrow
c. Replevin
d. None of the above

40. A necessary deposit is:

1 point

a. Constituted in compliance with a legal obligation

b. On the occasion of a calamity
c. Constituted by guests in hotels or inns
d. All of the above

Q41 to Q50
41. Depositary is liable for the loss of the thing through a fortuitous event when:
1 point

a. It is so stipulated
b. If he uses the thing without the depositor’s permission
c. If he delays its return
d. All of the above

42. A limited partner is liable as a general partner: I. If he is also a general partner. II. If he
participates in the management of the partnership. III. If he allows his surname to be included in the
partnership name. The Statement is true with respect to
1 point

A. I and II.
B. I and III.
C. II and III.
D. I, II, and III.

43. A hotel or inn keeper does not incur any liability if the loss:
1 point

a. Is caused by the guest, his family or servant

b. Arises from the character of thing deposited
c. Is caused by thief or robber using irresistible force
d. All of the above

44. The following are the characteristics of pledge, except:

1 point

a. It is a subsidiary contract
b. It is an indivisible contract
c. Ownership is transmitted to the Creditor
d. None of the above

45. A appoints B as his agent to sell his land. Which of the following is valid?
1 point

a. The authority of A is oral and B sells the land to C for P50,000.00 in a written contract of sale
b. The authority of B is in writing but the sale of the land in writing was made beyond the period expressly
set forth by A
c. The authority of B from A is by way of letter and B sells the land to C in writing
d. The authority of B is in writing and the sale of the land to C is oral

46. A stipulation whereby the pledge or mortgagee automatically becomes the owner of the thing
pledged or mortgaged.
1 point

a. Consolidation of ownership
b. Conventional Redemption
c. Consignation
d. Pactum Commissorium

47. Connie transferred to Violeta a parcel of land for the price of P100,000.00; P30,000.00 to be
paid in cash for the difference, she will convey her car worth P70,000.00. Assuming that the
intention is not clear, what kind of contract is this?
1 point

a. Lease Contract
b. Contract of Sale
c. Obligation to sell
d. Barter

48. A mortgaged his residential land to B as a guarantee for the payment of P408,000.00 obligation
of A. They agreed that A shall not sell the land while the obligation of A exists. Before maturity of the
mortgage, C offered to buy the land from A:
1 point

a. A cannot sell the land to C because of the agreement not to sell

b. A can only sell the land to C only if B consents in writing
c. A can sell the land to C despite the agreement not to sell.
d. A cannot sell the land to C unless A pays the obligation.

49. If redemption is made, which of the following will not be paid by the seller to the buyer:
1 point

a. Price made by the buyer

b. Expenses in the execution of the sales contract paid by the buyer
c. All necessary expenses on the thing sold and to be redeemed
d. Interest on the price paid by the buyer

50. The distinction between a chattel mortgage and a pledge is that in chattel mortgage:
1 point
a. The delivery of the personal property is necessary
b. The registration of the property in the Registy of Property is not necessary
c. The excess over the amount due after foreclosure goes to the debtor
d. Answer not given

Q51 to Q60
51. Sale is distinguished from dation in payment in payment is that in Sale:
1 point

a. There is a pre-existing obligation or credit

b. The cause is the price
c. It is a mode of extinguishment of obligation in the form of payment
d. Answer not given

52. Which of the following may not be object of a contract of sale?

1 point

a. Things with potential existence

b. The sale of a vain hope or expectancy
c. Future goods
d. Goods still to be manufactured

53. B pledged his 24 k gold necklace to C for P4,000.00. B failed to pay C the P4,000.00, on due
date. C sold the gold necklace at a public auction to the highest bidder for P3,500.00.
1 point

a. C can recover the deficiency of P500.00 from B

b. C can recover the deficiency of P500.00 even without stipulation
c. C cannot recover the deficiency of P500.00 unless there is stipulation
d. C cannot recover the deficiency of P500.00 even if there is stipulation.

54. Mr. Santos authorized Mr. Canlas to sell his car for P200,000.00 with 5% agents commission.
Mr. Canlas sold the car to Mr. Dizon for P250,000.00. For how much is Mr. Canlas accountable to
Mr. Santos?
1 point

a. P200,000.00
b. P190,000.00
c. P250,000.00
d. P240,000.00

55. Three of the following are characteristics of a contract of sale. Which one is the exception?
1 point

a. Onerous Contract
b. Commutative Contract
c. Accessory Contract
d. Bilateral Contract

56. Warranty against hidden defect is:

1 point

a. An essential Element
b. Accidental Element
c. Natural Element
d. None of the above

57. Antonio sold a piece of land to Renato binding himself not to sell the same to another person.
On the following day, Antonio sold the land to Carlos who immediately took possession in good
faith. In the case at bar, the proper remedy of Renato is to:
1 point

a. To institute an action for annulment of the sale to Carlos

b. Institute an action for the recovery of the land
c. Institute an action for damages against Antonio
d. Answer not given

58. A sold to B the former’s horse for P5,000. No date is fixed by the parties for the performance of
their respective obligations. The obligation of A is:
1 point

a. To deliver the horse immediately as there is a perfected contract

b. To deliver the horse upon payment by B of P5,000
c. To deliver the horse within a reasonable time of two months from the contract of sale
d. To rescind the contract as there is no time fixed for the delivery and payment

59. Three of the following are implied warranties in a contract of sale. Which is the exception?
1 point

a. Reasonably fit for the purpose they are acquired

b. Right to sell the thing at the time the contract is perfected
c. Merchantable quality
d. Free from charges or encumbrances not declared or known to the buyer.

60. Xenon stole a fountain pen from Oscar and sold it to a Bazaar who pays for it in good faith, not
knowing it was stolen. The Bazaar then sold it to Berta, a student
1 point

a. The Bazaar having bought it in good faith becomes the legal owner, and as such, he can transfer
ownership to Berta
b. Ownership passed to Berta because he bought it in a merchant store
c. Oscar may recover the fountain pen from Berta without reimbursement because he is the legal owner
d. Berta cannot become the owner because Xenon, the original seller, is not the owner

Q61 to Q70
61. Smith sold to Bert a specific refrigerator for a price of P10,000. It was stipulated in the contract
that Bert will pay only P6,000, and for the difference Bert will convey a specific television valued at
P4,000. What is the nature of the contract?
1 point

a. Barter
b. Partly sale and partly barter
c. Commodatum
d. Sale
62. Sandy, 16 years old sold to Bert, of legal age, a specific diamond ring for P10,000. Later, Bert
sold it to Zhao. Which of the following statements is incorrect?
1 point

a. Sandy has got a voidable title because at the time of the sale she is a minor
b. Zhao, if in good faith, shall become the owner upon delivery to him
c. Zhao, if in bad faith, shall also be the owner, except that his title is voidable
d. None of the above

63. B went to a store and offered to buy a certain watch for P1,000. S said that he was willing to
give it for P1,200. B turned to go away because he did not want to pay the price. S called him (B)
and said he is now willing to sell the watch for P1,000. Is the contract perfected?
1 point

a. Yes, because there was meeting of the minds between S and B

b. No, S made another offer not accepted by B
c. Yes, because the consent was already manifested
d. Yes, because B’s acceptance is not qualified

64. If redemption is made, which of the following will not be paid by the seller to the buyer.
1 point

a. Price paid by the buyer

b. Expenses in the execution of the sales contract paid by the buyer
c. All necessary expenses on the thing sold and to be redeemed
d. Interest of the price paid by the buyer

65. S offers to B 100 radio sets for P50,000 payable in 30 days with 10% interest per annum. B
cables S to advise that he accepts provided the interest is reduced to 5%. If S and B are both
merchants and there is no further communication between them relating to the terms, then:
1 point

a. B has made a counter offer

b. The contract is formed incorporating only the terms of S
c. The contract is perfected with B’s reduced interest rate becoming part of the agreement
d. None of the above

66. When goods are delivered to the buyer on “sale or return” for a period of 10 days, ownership of
the goods passes to the buyer
1 point

a. On perfection of the contract

b. On expiration of 10 days
c. On delivery of the goods
d. When the buyer signifies his acceptance to the seller

67. Ferdie orders for his workers, 1,000 pieces of T-shirts ranging in size from small to large from
FCL Garments Mfg. Corporation. The specified sizes, although not then available, are
manufactured by the said corporation and consigned to its sales outlets regularly. The contract
entered into by Ferdie with the FCL Garments Mfg. Corporation is
1 point

a. Contract for a piece of work

b. Contract subject to a resolutory condition
c. A contract of sale
d. None of the above

68. S offered for sale to B 10 cavans of RC10 rice. B asks S the price per cavan. S told B that the
price per sack is P5.00 over the price in Baguio City Public Market. The price is
1 point

a. certain because it has got reference to another thing which is certain

b. not certain, parties will go to court
c. not certain because the price in Divisoria Market is not stated
d. None of the above

69. S sold to B his only 2019 Jaguar car, and leaves to B to determine the price. B refuses to fix the
price, but took the car for his use. Which of the following statements is correct?
1 point

a. No sale, because the price is not fixed by the parties

b. There is a sale, B must pay a reasonable price
c. No sale until a third person fixes the price
d. S may go to court and ask for damages

70. The unpaid seller is not entitled to retain possession of the goods where
1 point

a. The goods have been sold without any stipulation as to credit

b. The goods have been sold on credit, but the term of the credit has expired
c. The buyer is insolvent
d. The possession of the seller on the goods is only as agent or bailee for the buyer
e. None of the above

Q71 to Q80
71. S sold to B a parcel of land for a lump sum of P50,000. The contract states that the area is 500
square meters. Subsequently, it was ascertained that the area included within the boundaries is
really 550 square meters.
1 point

a. S is bound to deliver 500 square meters and B to pay P50,000

b. S is bound to deliver 500 square meters and B to pay P55,000
c. S or B can rescind the sale because there is no meeting of minds
d. None of the above

72. In the preceding question (Question No. 71), if the land contains 445 square meters, which of
the following is correct?
1 point

a. S is bound to deliver 500 square meter and B to pay P50,000

b. S is bound to deliver 445 square meters and B to pay P44,500
c. B may rescind the sale because the lack in the area is more than 1/10 of the total area
d. None of the above

73. Three of the following are elements of the vendor’s right of stoppage in transit. Which is the
exception?
1 point

a. The buyer must be insolvent

b. The goods must be in transit
c. The seller must be unpaid
d. The seller must be in possession of the goods

74. Three of the following must be given by the seller to the buyer if the redemption is to be made.
Which is the exception?
1 point

a. Expenses of the contract

b. Price of the sale
c. Necessary expenses on the thing sold
d. Interest on the price of the sale

75. If the price is uncertain:

1 point

a. the transaction is void

b. the price is to be fixed by the court
c. the sale is unenforceable
d. the buyer will pay a reasonable price

76. . Statement 1. In gratuitous deposit, the depositor is not obliged to reimburse the expenses for
preservation as he has the implied authority to use the thing deposited. Statement 2. Hotel keeper
has the right to retain the things brought by guest within the hotel as security for the payment of the
accommodation of the said guest.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

77. Statement 1. In case of doubt, a contract purporting to be a sale with right to repurchase shall
be construed as an equitable mortgage. Statement 2. The vendee a retro is subrogated to the
vendor’s rights and actions.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

78. Statement 1. The creditors of the vendor cannot make use of the right of redemption against the
vendee, until after they have exhausted the property of the vendor. Statement 2. Legal redemption
is the right to be subrogated, upon the same terms and conditions stipulated in the contract, in the
place of one who acquired a thing by purchase or dation in payment, or by any other transaction
whereby ownership is transmitted by onerous title.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

79. Statement 1. A chattel mortgage exists when personal property is recorded in the Chattel
Mortgage Register as a security for the performance of an obligation. Statement 2. In chattel
mortgage, the mortgagor must execute an affidavit of good faith in order that the mortgage shall be
valid against third persons.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

80. Statement 1. An unregistered chattel mortgage is valid upon parties but void as to innocent third
persons. Statement 2. Real Estate Mortgage is an accessory contract
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

Q81 to Q90
81. Statement 1. The parties to a mortgage of a house and lot cannot validly stipulate that the
mortgage property cannot be sold except with the consent of the mortgagee. Statement 2. Real
Estate Mortgage to be valid as to third person is sufficient if it has been embodied in a public
instrument.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

82. Statement 1. There is no automatic rescission in sale of movable or immovable property.

Statement 2. The only remedy of the seller in sale of personal property by installment if the buyer’s
failure to pay covers two (2) or more installments is to cancel the sale.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

83. Statement 1. In sale with right to repurchase, the vendee a retro is liable to return to the vendor
the purchase price and its interest at the time of the redemption. Statement 2. Owners of property
seized and sold for tax delinquency shall have no right of legal redemption.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

84. Statement 1. In both chattel mortgage and pledge, the thing as a security for the fulfillment of
the principal obligation is delivered to the creditor. Statement 2. A stipulation for bidding the owner
from alienating the immovable mortgage is valid.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

85. Statement 1. The surety is entitled to Benefit of Excussion. Statement 2. The objects in Mutuum
are non-fungible objects.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

86. Statement 1. In pledge personal properties are delivered by the pledgor to the pledgee primarily
for safekeeping purposes. Statement 2. Ownership is transferred to the bailee in commodatum.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

87. Statement 1. Mutuum is a consensual contract. Statement 2. The pledgor will retain possession
over the subject matter of the contract.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

88. Statement 1. The subject matter of antichresis is movable properties. Statement 2. Only non-
consumables can be given in commodatum.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

89. Statement 1. Guaranty is a unilateral contract. Statement 2. A guarantor is allowed to appoint a

sub-guarantor
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

90. Statement 1. The right of a co-owner to is more supreme than the right of an adjacent owner
when it comes to redemption of urban lands. Statement 2. It is bulk sale if all or substantially all of
the goods of the seller are sold in the ordinary course of his business
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

Q91 to Q100
91. Statement 1. Credit transactions are also known as contract of bailments. Statement 2. Bailor is
also known as the creditor
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

92. One who participates in the management.

1 point

a. Managing Partner
b. Silent Partner
c. Ostensible Partner
d. Dormant Partner
e. Nominal Partner

93. One who liquidates or winds-up the affairs of the partnership.

1 point

a. Managing Partner
b. Liquidating Partner
c. Ostensible Partner
d. Dormant Partner
e. Nominal Partner
94. One whose connection to the firm is public and open.
1 point

a. Managing Partner
b. Silent Partner
c. Ostensible Partner
d. Dormant Partner
e. Nominal Partner

95. One who is both a secret and a hidden partner.

1 point

a. Managing Partner
b. Silent Partner
c. Ostensible Partner
d. Dormant Partner
e. Nominal Partner

96. One who is not really a partner but who may become liable as such insofar as third persons are
concerned.
1 point

a. Managing Partner
b. Silent Partner
c. Ostensible Partner
d. Dormant Partner
e. Nominal Partner

97. One who is not exempted from losses and can engage in other business provided there is no
competition between the partner and his business.
1 point

a. Capitalist Partner
b. Capitalist-Industrial Partner
c. General Partner
d. Limited Partner
e. Industrial Partner

98. One who is liable beyond the extent of his contribution.

1 point

a. Capitalist Partner
b. Capitalist-Industrial Partner
c. General Partner
d. Limited Partner
e. Industrial Partner

99. One who is always a general partner.

1 point

a. Capitalist Partner
b. Capitalist-Industrial Partner
c. General Partner
d. Limited Partner
e. Industrial Partner

100. One who cannot engage in any other business even if there is no competition between the
partners and his business.
1 point

a. Capitalist Partner
b. Capitalist-Industrial Partner
c. General Partner
d. Limited Partner
e. Industrial Partner

Q101 to Q110
101. Management of a partnership is usually conferred upon the:
1 point

a.. Manager
b. President
c. Partners
d. None of the above

102. A person admitted to all the rights of a limited partner who has died or assigned his interest in
a partnership is known as:
1 point

a. Assigned Limited Partner

b. Ipso facto Limited Partner
c. Substituted Limited Partner
d. Unlimited Partner
e. Answer not given’

103. A, B and C are partners. Their contributions as follows: A, P60,000; B, P40,000, and C,
services. The partners agreed to divide the profits and losses in the following proportions: A, 35%,
B, 25% and C, 40%. If there is a profit of P10,000, how should the said profit of P10,000 be
distributed among the partners?
1 point

a. A, P6,000; B, P4,000; C, nothing

b. A, P3,000; B, P2,000; C, P5,000
c. A, P3,500; B, P2,500; C, P4,000
d. A, P3,500; B, P3,500; C, P3,000
e. None of the above

104. A, B and C are partners. Their contributions as follows: A, P60,000; B, P40,000, and C,
services. The partners agreed to divide the profits in the following proportions: A, 35%, B, 25% and
C, 40%. If there is a loss of P10,000, how should the said loss of P10,000 be distributed among the
partners?
1 point

a. A, P6,000; B, P4,000; C, nothing

b. A, P3,000; B, P2,000; C, P5,000
c. A, P3,500; B, P2,500; C, P4,000
d. A, P3,500; B, P3,500; C, P3,000
e. None of the above

105. A, B, and C are partners. Their contributions are as follows: A, P60,000; B, P40,000, and C,
services. The partners did not agree on how to divide the profits and losses. If there is a loss of
P10,000, how should the said loss of P10,000 be distributed among the partners?
1 point

a. A, P6,000; B, P4,000; C, nothing

b. A, P3,000; B, P2,000; C, P5,000
c. A, P3,500; B, P2,500; C, P4,000
d. A, P3,500; B, P3,500; C, P3,000
e. None of the above

106. The following persons are disqualified to form a universal partnership. Who are the exceptions:
1 point

a. Brother and sister

b. Husband and wife
c. Those guilty of adultery and concubinage
d. Those guilty of the same criminal offense, if partnership is entered into in consideration of the same.

107. A partner shall have the right:

1 point

a. To ask that the books of the partnership be kept at the principal place of business of the firm, and at any
reasonable hour have access to and inspect and copy any one of them.
b. To demand true and full information of all things affecting the partnership
c. To share in the profits and surplus assets of the firm
d. To ask for judicial dissolution
e. All of the above

108. Three (3) of the following are rights of a partner. Which one (1) is not?
1 point

a. Right to associate another person to his share

b. Right to admit another partner
c. Right to inspect and copy partnership books
d. Right to ask dissolution of the firm at the proper time

109. Which of the following is not an element of a partnership?

1 point

a. There must be a valid contract

b. There must be a mutual contribution of money, property or industry to a common fund
c. There must be an intent to engage in lawful business, trade or profession
d. None of the above

110. Statement 1. A person admitted as a partner into an existing partnership is not liable for
obligations of the partnership contracted before his admission. Statement 2. A stipulation which
excludes one or more partners from any share in the profits or losses is void.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

Q111 to Q120
111. Statement 1. A partner’s interest in the partnership is his share in the profits and losses.
Statement 2. A partnership may be established for charity.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

112. Statement 1. A partnership has a juridical personality separate and distinct from that of each of
the partners. Statement 2. Any judgment creditor of a partner may charge, attach and execute a
partner’s interest in the partnership.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

113. Statement 1. Articles of Universal Partnership entered into without specification of its nature is
presumed to constitute only a universal partnership of all profits. Statement 2. One of the partners
in a proposed partnership is a multi-millionaire. The stipulation in the contract of partnership that
this partner shall be exempted from sharing in the profits of the partnership is valid.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

114. Statement 1. That partner who has been appointed manager in the articles of partnership may
exercise all acts of administration despite the opposition of his partners and his power is irrevocable
without just or lawful cause. Statement 2. Two or more persons may form a partnership for the
exercise of a profession.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE
115. Statement 1. A capitalist partner cannot engage in business for himself unless the partnership
expressly permits him to do so. Statement 2. The designation of losses and profits may be
entrusted to one of the partners.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

116. Statement 1. A partnership begins from the time the partnership contract is registered with the
Securities and Exchange Commission. Statement 2. Every partner may associate another person
with him in his share, but the associate shall not be admitted into the partnership without the
consent of all the other partners, even if the partner having an associate should be the manager.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

117. Statement 1. Every partner shall at any reasonable hour have access to and may inspect and
copy the books and records of the partnership. Statement 2. Delectus personae is the right to be
associated with persons you like.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

118. Statement 1. Minors can become partners if they will only contribute their industry. Statement
2. A person who lends money to a person engaged in business with an understanding that he will
receive profits in lieu of the interest are partners in the business.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

119. Statement 1. Losses in the absence of any stipulation and no profit sharing agreement shall be
divided according to capital contribution. Statement 2. Profit and loss sharing can be entrusted to a
third person but not to one of the partners.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE
120. Statement 1. Partnership with a capitalization of at least P3,000.00 must be in a public
instrument and must be registered with the Securities and Exchange Corporation. Statement 2.
Affectio Societatis is the desire to formulate an active union with people among whom there exists
mutual trust and confidence.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

Q121 to Q130
121. Statement 1. Partnership is covered by the rule on Statute of Frauds. Statement 2. In universal
partnership of all present property, those which a partner may subsequently acquire by inheritance
are part of the common property of the partnership.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

122. Statement 1. In partnership of all profits, ownership of movables owned by the partners at the
constitution of the partnership remains with the partner only the usufruct passing to the partnership.
Statement 2. Sociedad anonima is one where all partners are exempted from any liability for the
debts or obligations beyond their personal contributions.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

123. Statement 1. Failure to deliver the contribution on time shall make the guilty partner liable to
pay interest and damages even if there is no stipulation to that effect. Statement 2. If there is failure
to deliver the promised capital contribution, the non-defaulting partners can demand for the
rescission of the contract under Article 1191.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

124. Statement 1. In universal partnership of profits, the risk of loss of the movable property which
was delivered to the partnership remains with the contributing partner. Statement 2. Rights over
specific partnership property can be assigned to the other partners discreetly.
1 point
a. Both Statements are TRUE
b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

125. Statement 1. Insanity of one of the partners will ipso facto dissolve the partnership. Statement
2. Death of any partner, whether known or unknown to the others causes a decrease in the number
of partners, hence the partnership is automatically terminated.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

126. Statement 1. As a rule, a person admitted as a partner into an existing partnership is liable for
all the obligations of the partnership arising before his admission as though, he had been a partner
when such obligations were incurred. Statement 2. Creditors of the partnership are preferred over
the personal creditors of the partners.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

127. Statement 1. For the Doctrine of Partnership by Estoppel to be applied, it is required that the
third party must be deceived. Statement 2. The liability of the partners and the partnership arising
from tort or quasi-delict is solidary.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

128. Statement 1. In case the depositary delays its return, the depositary is liable for the loss of the
thing through a fortuitous event. Statement 2. In deposit, when it is necessary to open a locked
receptacle, the depositary is conclusively and absolutely presumed to have the authority to do so.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

129. Statement 1. Guaranty can exist on a natural obligation. Statement 2. Guaranty cannot be
used to secure future debts as it may be constituted only on present and existing obligations.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE

130. Statement 1. In Chattel Mortgage, there is right of legal redemption. Statement 2. In

antichresis, the creditor as a rule, has th obligation to pay the taxes and charges upon the estate.
1 point

a. Both Statements are TRUE

b. Both Statements are FALSE
c. Only Statement 1 is TRUE
d. Only Statement 2 is TRUE