1.

In which of the following situation is demand not necessary to consider the debtor
delayed in the performance of his obligation?
a. When the time of the performance is of the essence
b. When the law so provides
c. When the time of performance has been stipulated
d. When demand would be useless

2. Demand is not needed to put the debtor in default, except

a. When demand would be useless
b. When the parties so stipulate
c. When time is of the essence
d. When the fixing of the time is the controlling motive for the establishment of
the contract

3. 1st Statement. In a natural obligation, the creditor has the right to enforce the
performance thereof it being based on positive law.
2nd Statement. Solutio indebiti and negotiorum gestio are quasicontracts that give
rise to civil obligations
a. True, True
b. True, False
c. False, False
d. False, True
e. Other:

4. This is a principal kind of quasi-contract arising out of payment by mistake or undue

performance of an obligation
a. Solutio indebiti
b. Negotiorum gestio
c. Other quasi-contract
d. Quasi delict

5. If the obligor binds himself to perform his obligation “as soon as he shall have
obtained a loan” from a certain bank. This obligation is
a. With a term
b. With a suspensive condition
c. With a period
d. With a resolutory condition

6. If the obligation of the debtor is I will pay you my debt after I have arrived from
abroad. The obligation is
a. Valid
b. Void
c. Voidable
d. Unenforceable

7. A, B, and C executed a promissory note in favor of D, E, and F in the amount of

P9,000.00. Can the creditors proceed against A for the payment of the entire
loan?
a. No, each creditor can only collect P3,000 for A
b. Yes, anyone of the creditors can collect the entire P9,000 from A
c. No, each of the creditors can only collect P1,000 from each of the debtors
d. Yes, because the obligation is presumed to be solidary

8. A, B and C executed a promissory note binding themselves to pay P9,000 to X, Y

and Z. The note is now due and demandable. Suppose that C is insolvent and the
obligation was about to prescribe, but X wrote a letter to A demanding for payment
or the entire debt. When prescription sets in, how much can Y collect from A?
a. 9000
 b. 3000
c. 1000
d. 0

9. A, B and C borrowed P3M from D, E and F evidenced by a promissory note worded

as follows, to wit: “I promise to pay D, E and F P3M. (Sgd) A, B and C “How much
can D collect from A?
a. P3M
b. P0.50M
c. P1.50M
d. P1M

10. The following are special forms of payment, except:

a. Dacion en pago
b. Tender of payment and consignation
c. Payment by cession
d. Compensation

11. Novation of a contract takes place in three of the following except:

a. Delegacion
b. Expromission
c. Subrogation
d. Assignment

12. The contract must bind both contracting parties, its validity or compliance cannot
be left to the will of one of them, and this is
a. Mutuality of contract
b. Freedom of contract
c. Relativity of contract
d. Obligatoriness of contract

13. The statement “Contracts shall be obligatory in whatever from they have been
entered into provided all the requisites for their validity are present” refers to
a. Consensual contracts
b. Real contract
c. Formal contracts
d. Solemn contracts

14. By this principle, contracts take effect only upon the contracting parties, their
assigns or successors in interest
a. Mutuality of contract
b. Freedom of contract
c. Relativity of contract
d. Obligatoriness of contract

15. Three of the following dissolves a partnership, except:

a. Partnership business has become unlawful
b. Death, civil interdiction or insolvency of a partner
c. Expulsion of a partner
d. Partnership business can only be carried on at a loss

16. Which of the following is not a prohibition on limited partner?

a. Surname of a limited partner may not appear in the partnership name
b. Limited partner may not take part in the control of the business
c. Limited partner may not contribute service
d. Limited partner may not constitute his assignee as substituted limited
partner
17. Private corporations have the following attributes except:
a. It is an article being created by law
b. It may be formed or created under special laws or charter It has the right of
succession
c. It has the powers, attributes, and properties expressed authorized by law or
incidentin
d. its creation

18. Majority of the following must be residents of the Philippines except:

a. Directors
b. Trustees
c. Incorporators
d. Officers

19. The following are qualifications of a corporate director, except

a. Must own at least one share of stock
b. Must continuously own at least one share during his term as director
c. Majority of the directors are citizens of the Philippines
d. Ownership of shares must be recorded in the book of the corporation

20. In three of the following cases, all shares have voting rights except:
a. Election of directors
b. Increase or decrease of capital stock
c. Dissolution of the corporation
d. Merger or consolidation

21. M owes P P10,000.00. the obligation is evidenced by a promissory note.

Subsequently, P assigned the note to A, A to B, B to C, and C back to M. the
obligation of M is extinguished by
a. Compensation
b. Confusion
c. Condonation
d. The obligation is not extinguished because there was no payment.

22. Tom and Jerry entered into a contract whereby Tom agreed to sell Jerry $1,000
worth of heroin, an illegal substance. This is an example of a:
a. quasi contract.
b. void contract
c. voidable contract.
d. secondary party beneficiary contract.

23. The body of law which establishes rights between persons and provides for
redress for violation of those rights is known as:
a. Criminal Law.
b. Civil Law.
c. The Uniform Commercial Code.
d. Stare decisis

24. What is the government instrumentality created in 1963 by virtue of Republic Act
3591 to insure the deposits of all banks which are entitled to the benefits of
insurance and considered as an an attached agency of the Department of
Finance?
a. Development Bank of the Philippines (DBP)
b. Landbank of the Philippines (LBP)
c. Philippine Deposit Insurance Corporation (PDIC)
d. Bangko Sentral ng Pilipinas (BSP)
25. Which of the following is insured by PDIC?
a. Savings deposit
b. Demand draft
c. telegraphic notes
d. Telegram notes

26. What is the possible maximum deposit insurance coverage if a depositor has
several valid single accounts in a closed bank?
a. P1,000,000
b. P500,000
c. P750,000
d. P1,500,000

27. Which act is covered by Domestic Bank Deposit Secrecy Law a.k.a. R.A. No.
1405?
a. Disclosing the amount of deposit of a judgment debtor to the court sheriff
who is executing a garnishment order against him
b. Disclosing the name of the drawer of a check to the payee.
c. Disclosing the amount of deposit of a taxpayer to a duly authorized BIR
examiner who is examining his income tax liability
d. Disclosing the amount of deposit exceeding P500,000 in one banking day
to Anti-Money Laundering Council.

28. It refers to a crime committed by any person who knowing that any monetary
instrument or property represents, involves, or relates to the proceeds of any
unlawful activity, transacts, converts, transfers, disposes of, moves, acquires,
possesses or uses said monetary instruments or proceeds of any unlawful activity.
a. Estafa
b. Forgery
c. Money Laundering
d. Bribery

29. As a general rule, what is the quantitative threshold for any transaction in cash
or other equivalent of a covered person such as financial institututions to be
considered reportable transaction to AntiMoney Laundering Council?
a. A transaction with amount exceeding P1,000,000
b. A transaction with amount exceeding P100,000
c. A transaction with amount exceeding P500,000
d. A transaction with amount exceeding P5,000,000

30. What is the quantum of evidence required for awarding of civil damages for
issuance of worthless checks?
a. Probable cause or prima facie evidence
b. Clear and convincing evidence
c. Preponderance of evidence
d. Proof beyond reasonable doubt

31. Is a mode of extinguishing an obligation by changing the object or principal

conditions, or by substituting the person of the debtor, or by subrogating a third
person in the rights of the creditor?
a. Novation
b. Compensation
c. Merger of rights
d. Remission

32. All present properties are contributed

a. Universal partnership
b. General partnership
 c. Limited partnership
d. None of the above

33. If a partner in a partnership is insolvent, the first order of preference in the

distribution of his assets are:
a. Partnership creditors
b. Partners contribution to the partnership
c. Separate creditors of the debtor
d. Pro-rata between the separate creditors of the debtor and the partnership
creditor

34. A, as a partner contributed P30,000; B as partner, P15,000; and C as industrial

partner, his services in the partnership. After payment of all liabilities and
expenses, only P18,000 remain as partnership assets
a. A, P12,000; B, P6,000; C, None
b. A, P6,000; B, P6,000; C, P6,000
c. A, P9,000; B, P9,000; C, None
d. A, P8,000; B, P4,000; C, P6,000

35. A limited partner who takes active part in the management of the firm becomes:
a. A managing partner
b. Liable as a general partner
c. A general partner
d. A general partner and a limited partner at the same time

36. A private corporation organized under the corporation law commences to have
corporate existence and juridical personality and is deemed incorporated from:
a. The date when the articles of incorporation is signed by the incorporators
b. When the articles of incorporation and by laws are presented and received
by the SEC
c. From the date the SEC issues a certificate of incorporation under its official
seal
d. When the Articles of Incorporation is notarized by a Notary Public

37. The authorized capital stock of a proposed corporation is P100,000 divided into
1,000 shares with a par value of P100.00 each. The minimum amount of
subscription that must be paid is:
a. P8,750 or 87.5 shares
b. P6,250 or 62.5 shares
c. P5,000 or 50 shares
d. P7,500 or 75 shares

38. The voting proportion required to enable a corporation to invest its funds in any
other corporation on business of for any purpose other than its primary purpose:
a. 2/3 vote of the board of directors and ratified by majority of the outstanding
capital stock
b. Majority vote of the board of directors and ratified by majority of the
stockholders
c. Majority of the board of directors and ratifies by 2/3 of the outstanding
stockholders
d. Majority of the board of directors and ratified by 2/3 of the outstanding
capital stock