Documente Academic
Documente Profesional
Documente Cultură
1. On September 21, 2010, Piolo agreed to sell his only carabao to Sam and Sam agreed to
pay the price of P25,000 if Sam will pass the October 2010 CPA Examination. The list of
successful examinees was released on October 21, 2010 and Sam is one of those who
passed the examination. As a result,
a. Piolo is entitled to the P25,000 price plus interest beginning September 21, 2010.
b. Sam is entitled to the carabao and its fruits beginning September 21, 2010.
c. Sam is entitled to the carabao beginning September 21, 2010 and to its fruits
beginning October 21, 2010.
d. Piolo shall deliver the fruits of the carabao and Sam shall pay the interest on the price
beginning September 21, 2010.
2. The following are elements of an obligation, except
a. Active and passive subjects
b. Efficient cause
c. Prescription
d. Vinculum
3. A, B, and C owe W, X, Y, and Z the sum of P120,000. If the obligation is due, which of the
following is not correct?
a. A is liable only for a total of P40,000.
b. W can only collect P10,000 from C
c. B can be required to pay P40,000 to any of the creditors
d. Y can only collect a total of P30,000
4. The following pertains to facultative obligations, except:
a. Comprehends only one object or prestation which is due
b. Choice pertains only to the debtor
c. Fortuitous loss of all prestations will extinguish the obligation
d. Not given.
5. An obligation subject to the happening of a future and certain event is
a. Conditional obligation
b. Suspensive conditional obligation
c. Resolutory conditional obligation
d. Obligation with a period
6. S1: The debtor shall lose the right to make use of the period when he does not furnish
any guaranty or security to the creditor.
S2: In an obligation subject to a suspensive period, what is suspended is birth of the
obligation.
a. True;true
b. true;false
c. false;false
d. false;true
7. Which of the following is not a generic obligation?
a. Obligation to pay P1,000,000
b. Obligation to deliver 1999 Nissan Sentra Series III
c. Obligation to deliver 50 cavans of rice
d. Obligation to give a delimited generic object
8. I will give you my car provided that if I like to have it back, you will return the same to
me.
a. The obligation is void, because the fulfillment depends upon the will of the debtor.
b. The obligation is void, because the fulfillment depends upon the will of the creditor.
c. The obligation is valid because the condition merely causes the loss of rights already
acquired.
d. Both A and B.
9. S1: Dog obliged himself to give Cat a specific car tomorrow. If Dog failed to deliver
tomorrow after demand is made, Cat may compel Dog to do his obligation and may ask
for damages.
S2: Darna obliged to deliver a car to Captain Barbel tomorrow. If Darna failed to deliver
tomorrow after demand is made, Captain Barbels right is to ask a third person to deliver
a car to him at the expense of Darna plus damages.
a. Both statements are true.
b. Both statements are false.
c. Statement 1 is true while statement 2 is false.
d. Statement 1 is false while statement 1 is true.
10. Which of the following is not a conditional obligation?
a. D to give C P1,000 if C passes the examination.
b. D to pay C P1,000 if he has the means.
c. D to give C a horse if C marries X.
d. D is to use Cs car until C returns from Davao.
11. It is the voluntary administration of the property of another without his consent.
a. Negotiorum Gestio
c. Quasi-delict
b. Solutio Indebiti
d. Contract
12. A, B and C are solidary debtors of X and Y, solidary creditors, for P60,000. X makes a
demand to A but the latter paid Y. In here, the obligation is not extinguished.
A and B solidary debtors of X, Y and Z, solidary creditors. X demands payment from A,
but B, upon whom no demand is made paid Z the entire obligation. In here, the obligation
is totally extinguished.
a. True;true
b. true;false
c. false;false
d. false;true
13. Elmo is obliged to give Bert, either a ring worth P5,000; or bracelet worth P4,500; or a
watch worth P4,000. All the objects were lost due to Elmos fault in the order stated.
a. Elmos obligation is extinguished.
b. Elmos obligation is to pay the value of the ring plus damages.
c. Berts right is to demand the value of any of the objects plus damages.
d. Elmos obligation is to pay the value of the watch plus damages.
14. Culpa aquiliana as distinguished from culpa contractual:
a. Proof of due diligence in the selection and supervision of employees is not
considered a defense.
b. Proof of the contract and its breach is sufficient to warrant recovery.
c. The negligence of the defendant is only an incident in the performance of the
obligation.
d. The source of liability is the negligent act of the person causing damage to another.
15. S1: When one of the parties has brought an action to enforce the contract, he cannot
subsequently ask for its reformation.
S2: The injured party may seek rescission even after he has chosen the fulfillment of the
obligation if the latter should become impossible.
a. True; true
b. true;false
c. false;false
d. false;true
24. A, B and C bound themselves to deliver to X a specific car worth P3M. Due to the fault of
A, the car was lost. In this case
a. X can claim damages from any one of the three for his proportionate part of liability
because the obligation is indivisible.
b. X can claim only from A the whole amount of damages other than the value of the
car.
c. Since it is solidary liabilities for damages, X can claim the same from any of the three.
d. Only A is liable for damages although B and C are liable for their respective shares in
the obligation.
25. Dennis owes Cart P1M. Xanabelle, without the knowledge or against the will of Dennis
paid Cart P2M. Can Xanabelle get reimbursement from Dennis?
a. P2M by way of reimbursement from Dennis to prevent unjust enrichment on the part
of Dennis at the expense of Xanabelle.
b. P1M only for that is the extent of benefit of Dennis.
c. No reimbursement because the payment was not proper being without the
knowledge or against the will of Dennis.
d. P1M plus interest from the time of payment until reimbursement.
26. Payment made by a third person is valid to extinguish the obligation of the debtor to the
creditor in the following cases, except
a. After payment to the creditor, the third person acquires the creditors right
b. When the creditor ratifies the payment to the third person
c. When through the creditors conduct, the debtor was led to believe that the third
person had authority to receive payment
d. When the third person is subrogated to the rights of the creditor.
27. Sister offered his car to Brother for P1M and giving the latter one week to decide. Brother
in turn gave Sister P1,000. In this case, there is
a. Contract of sale of the car with the P1,000 as earnest money
b. Contract of option with the P1,000 as option money
c. Contract to sell of the car at Bs option
d. Contract to sell of the car at Ss option
28. Anmony advertised in the newspaper his parcel of land wanting to sell the same for P1M.
Boy personally went to the former with cash in hand to buy the subject parcel of land. In
this case,
a. Anmony cannot anymore reject Boy as buyer of his land
b. Anmony can still reject Boy as an offered in the purchase of land
c. Anmony can reject the offer of Boy unless he properly consigns with the court his
payment for the land
d. Anmony cannot evade his obligation as seller to Boy
29. The contract entered into by the persons who cannot give consent is
a. Void ab initio because actually there is no consent
b. Unenforceable only because the contract may be ratified
c. Rescissible because of the damage caused to the person incapacitated
d. Voidable as there is consent although vitiated or defective
30. A defective contract where damage or lesion is essential is
a. Rescissible
c. Unenforceable
b. Voidable
d. Void
31. A defective contract because it is entered into in the name of another without or in excess
of authority, or it is verbal is
a. Unenforceable
c. Void
b. Voidable
d. Rescissible
32. The following even if not in public instrument are valid, binding and enforceable except
a. Negotiable instruments
b. Sale of land, either by the owner or agent with written authority
c. Agency, pledge, mortgage
d. Partnership contract wherein immovables are contributed
33. Aguilar sold to Beddie his dog with the agreement that delivery shall be after one week
from sale and the payment of the price after two weeks from delivery. If the dog shall
produce offspring, it shall belong to:
a. If produced before the sale, it shall pertain to the seller
b. If the puppy shall exist before the actual delivery, it shall pertain to the seller
c. The fruits that shall exist after delivery will only be the ones to pertain to the buyer
d. The fruits after the sale but before delivery shall pertain to the buyer if so stipulated
by the parties to the sale
34. A sold Bs car in Bs name to C without any authority from B. The contract of sale is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
35. With written authority from his principal, the agent sold verbally the land of the principal.
The sale is
a. Rescissible
b. voidable
c. unenforceable
d. Void
36. A, as agent of P with oral authority, sold Ps land in public instrument. The sale is
a. Rescissible
b. voidable
c. unenforceable
d. Void
37. A, agent of P, in excess of authority, entered into a contract in the name of P with X who
knew of the lack of authority and P did not ratify the contract. The contract is
a. Rescissible
b. voidable
c. unenforceable
d. Void
38. S sold his car to B. No agreement was made on the time and place of delivery and
payment. Hence
a. The time and place of delivery shall be at the time and place of payment of the price
b. The time and place of delivery and payment not having been agreed upon, the sale
shall be void
c. The seller may demand payment first before delivery of the thing sold
d. The buyer may demand delivery first before payment
39. A owes B P20,000 which became due and payable last June 23, 2010. On that date, A
offered B P10,000, the only money he then had, but B refused to accept the payment. A,
thereafter met C, Bs 23 year old son, to whom he gave the P10,000 with the request
that he turn the money over to B. The money was stolen while Cs possession. How
much may B still recover from A?
a. P20,000
c. P15,000
b. P10,000
d. P -040. If a third person pays an obligation. What are the rights, which are available to him if he
pays the obligation with the knowledge and consent of the debtor?
1st answer He can recover from the debtor the entire amount, which he has paid.
2nd answer He subrogated to all of the rights of the creditor.
b. Void
d. unenforceable
c.
d. false;false
c.
57. The meeting of minds manifests consent after the acceptance upon the thing and the
cause which are to constitute the contract. Which of the following constitute a definite
offer?
a. An offer made through an agent.
b. Business advertisements of things for sale.
c. Advertisements for bidders.
d. None of the above.
58. S1: If the cause is not stated in the contract it is presumed that it is lawful.
S2: The action for rescission in subsidiary; it cannot be instituted except when there is no
other legal means to obtain reparation for damages suffered.
a. Both are true
c. Only 1st is true
b. Both are false
d. Only 1st if false
59. Simon offers to sell his house to Pedro for P200,000. Pedro asks him if he would accept
P185,000.
1st: Because of ambiguity, both offers are terminated by operation of law.
2nd: Pedros response is a more inquiry, the P200,000 offer by Simon is still in force.
a. True;true
b. true;false
c. false;true
d. false;false
60. Debtors fault in real obligation is called
a. Mora accipiendi
b. Mora solvendi ex-re
c. Mora solvendi ex-persona
d. Compensation-morae
61. ) In order to amend the corporate by-laws, what vote is required to happen?
a.)
b.)
2/3 votes of the Board of Directors and 2/3 votes of the outstanding capital stockanding
capital stock b) Majority votes of the Board of Directors and 2/3 votes of the outstanding
capital stock c) 2/3 votes of the Board of Directors and majority vote
Majority votes of the Board of Directors and majority votes of the
outstanding capital stock
c.)
2/3 votes of the Board of Directors and majority votes of the outstanding capital stock
d.)
Majority votes of the Board of Directors and 2/3 votes of the outstanding capital stock
62.) Ondoy pledged his motor bike to Peping for P5,000.00. When Ondoy failed to pay his
obligation, Peping sold the motor bike at public auction to the highest bidder for P4,000.00.
Therefore:
a.)
b.)
c.)
d.)
Peping cannot recover P1,000.00 from Ondoy unless stipulated that he can
stipulation
63.) Dacion en Pago differs from a Sale in the sense that in latter
a.) the obligation is extinguished once the offer is accepted
b.) there is less freedom in the determination of the price of the object
c.) the cause of the contract is the price
d.)there is pre-existing credit between the parties
a.) Obligations arising from contracts have the force of law between the contracting parties
and must be complied with in good faith.
b.) Fraud committed in the performance of an obligation gives the injured party the right to
annul the contract.
c.) Not only the parties, but their heirs and assigns are bound by their contract.
d.) Generally, the debtor is not liable for the non-performance of his obligation due to
fortuitous event.
66. A Corporation may be dissolved voluntarily or involuntarily based on several causes. Which of
the following is a cause for the automatic dissolution of a corporation?
a.)
Failure to file the required report to the Securities and Exchange Commission
b.)
Failure to continue the business for at least five (5) years
c.)
Failure to formally organize and commence business within two years from the
issuance of the certificate of incorporation
d.)
Failure to file its corporate by-laws with the Securities and Exchange Commission within
thirty days from the issuance of the Certificate of incorporation
67. Dan mortgaged his house and lot to Casey to secure his loan amounting to P1M. It is
stipulated that Dan cannot sell his house and lot without the consent of Casey while the loan
remains unpaid. Before the maturity date, Ben offered to buy the house and lot of Dan for P1.6M.
In this scenario:
a.)
b.)
c.)
d.)
Dan cannot sell his house and lot because of the prohibition in the contract.
Dan cannot sell his house and lot without the consent of Casey.
Dan can sell his house and lot provided he pays the loan to Casey.
Dan can sell his house and lot despite the prohibition in the contract.
68. Toto sold the car of Popo without authority. When the buyer Momo demanded for the key of
the car from Popo, after paying the purchase price, Popo gave the key of his car to the Momo.
The sale made by Popo to Momo is valid while an agency between Popo and Toto is created by:
a.)
b.)
c.)
d.)
estoppel
contract
operation of law
ratification
69. Simon transferred to Peter the ownership of his car, worth P500,000.00 in consideration of the
amount of P240,000.00 plus a hand tractor worth P260,000.00. The contract between them is
actually a form of:
a.)
b.)
c.)
d.)
70. Ann mortgaged his house to Boy to secure his loan amounting to P1,500,000.00. Due to the
negligence of the typist, the document signed by Ann and Boy shows that the house of Ann was
sold to Boy for P1,050,000.00 only. Which of the following statements is correct?
a.)
by Ann
b.)
c.)
d.)
The contract of sale between Ann and Boy rescissible because of the damage suffered
The contract of sale between Ann and Boy is relatively simulated
The contract of sale between Ann and Boy is voidable because there is a mistake
The contract of sale between Ann and Boy may be reformed
71. S1: In a natural obligation, the creditor has the right to enforce the performance thereof it
being based on positive law.
S2: Solutio indebiti and negotiorum gestio are quasi-contracts that give rise to civil
obligations.
a. True; True
b. True; False
c. False; False
d. False; True
a. The husband is liable because the note was executed by the husband voluntarily
b. The recovery shall be limited only to the amount embezzled without any interest
c. The employer may recover from the husband of the employee and may still prosecute the
employee
d. No recovery can be made on the note because the consideration is illicit
88. One of the following contracts is not vitiated by intimidation or violence and hence, valid.
Which is it?
a. A contract of sale which was signed by a party because his arm was being twisted by a
third person.
b. A contract of sale which was entered into because the other party was pointing a gun at
his wife.
c. A contract where a party was compelled to assign his property to the other to pay a just
debt because the latter threatened to sue him in court if he does not pay his debt.
d. A contract of donation of a parcel of land which a party signed because the other party
threatened to burn his house.
89. The following statements pertain to the cause of a contract. Which statement refers to
motive?
a. It is the essential reason for a contract.
b. It is always known to the contracting parties.
c. Its illegality does not affect the validity of the contract.
d. There will be no contract without it.
90. One of the following is not a requisite of an object of contract. Which is it?
a. It must be within the commerce of men.
b. It must not be intransmissible.
c. It must be contrary to law, morals, good customs, public order or public policy.
d. It must be determinate as to its kind or if its quantity is not determinate, it must be
possible to determine the same without the need of a new contract between the parties.
91. S1: If the contract is not in the form provided by law for its validity, the contract is void.
S2: if the contract is not in the form provided by law for its enforceability, the contract, though
it has all the essential requisites for validity, cannot be enforced against the party sought to be
charged.
a. True; True
b. True; False
c. False; False
d. False; True
92. Acceptance of an offer made by the letter or telegram shall bind the offeror. From the time the
a. Offeree accepted the offer
b. Acceptance came to the knowledge of the offeror
c. Offeree sent his letter or telegram
d. Offeror made the offer
93. S1: If the terms of a contract are clear and leave no doubt upon the intention of the
contracting parties, the literal meaning of the stipulations shall control.
S2: If the words appear to be contrary to the evident intention of the parties, the latter shall
prevail over the former.
a. True; True
b. True; False
c. False; False
d. False; True
94. A leased his property to B. Part of the premises was subleased by B to C. B violated the
conditions of the lease, so A wanted to rescind the lease contract. Which is correct?
a. A can rescind the lease contract provided he respects the sublease
b. A cannot rescind the lease contract as the sublease would naturally be affected
c. A may rescind the lease contract and is not bound to respect the sublease
d. B may object to the cancellation of the contract because he is not a party to the violation
95. Which of the following need not be in writing to be enforceable?
a. An agreement for the sale of goods, chattels, or things in action at a price not less than
P500
b. An agreement for the leasing for a period longer than one year, or for the sale of real
property or of an interest thereon
c. A representation as to the credit of a third person
d. A mutual promise to marry
96. In order that fraud may make a contract voidable
a. It may be incidental but both parties should not be in pari delicto
b. It may be serious and the parties must be in pari delicto
c. It may be incidental but should have been employed by both parties
d. It should be serious and should have not been employed by both contracting parties
97. The following are characteristics of void or inexistent contracts, except:
a. The right to set up the defense of illegality cannot be waived
b. The action or defense for the declaration of the inexistence of a contract does not
prescribe
c. A void contract cannot be ratified
d. The defense of illegality of contracts is not available to third persons whose interests are
not directly affected
98. S1: A partnership is created by mere agreement of the partners while a corporation is created
by operation of law.
S2: In a partnership, juridical personality commences from the execution of the articles of the
partnership; in a corporation, from the issuance of certificate of incorporation by the Securities
and Exchange Commission.
a. True; True
b. True; False
c. False; False
d. False; True
99. The minimum capital in money or property except when immovable property or real rights
thereto are contributed, that will require the contract of partnership to be in a public
instrument and be registered with the Securities and Exchange Commission(SEC).
a. P5,000.00
b. P3,000.00
c. P3,001.00
d. P10,000.00
100.
If the partnership has the minimum capital mentioned in No. 29, but the contract is not in
a public instrument or the same is not recorded with SEC, the partnership:
a. Is voidable
b. Is void
c. Still acquires juridical personality
d. Does not acquire juridical personality
101.
Three of the following contracts are void. Which one is not?
a. A universal partnership of all present property between husband and wife
b. A universal partnership of profits between a man and a woman living together as
husband and wife without the benefit of marriage
c. A particular partnership between husband and wife
d. A universal partnership of profits between a private individual and a public officer
102.
Partners Arnold, Ben and Charlie contributed: Arnold-P1,000,000; Ben-P2,000,000; and
Charlie-service. After exhausting the partnership assets, the creditors still have a claim for
P300,000. For how much are the partners liable to the creditors for the partnership liability?
a. Only Arnold and Ben are liable equally to the creditors being capitalists
b. Only Arnold and Ben are liable at 1/3 and 2/3, respectively
c. All of Arnold, Ben and Charlie are liable pro rata to the creditors
d. Charlie is not liable being an industrial partner who is exempt from losses
103.
Armando and Betty are co-owners of a parcel of land from which they derive profits in
equal sharing being co-heirs in inheritance. Is there a partnership?
a. There is a partnership because of the equal sharing of profits
b. There is no partnership because co-ownership by itself does not establish a partnership
despite the sharing of profits
c. There is no partnership since in partnership division of profits is not always necessary
among partners
d. There is partnership they being co-owners and co-possessors
104.
Normelita and Gracia are partners in NG Partnership. While Normelita was performing
her duties as a partner in the conduct of the business, he negligently caused damage to
Eddie, a third person. Who shall be liable to Eddie and in what capacity?
a. Only the partnership shall be liable it being a juridical person separate and distinct from
the partners
b. Only Normelita shall be liable for she is the only one at fault
c. Both Normelita and Gracia shall be liable solidarily to Eddie
d. Normelita, Gracia and the partnership are all liable solidarily to Eddie
105.
Petalcorin is indebted for P5,000 to JDS Trading Company, a partnership managed by
Dulzura to whom Petalcorin also owes P10,000.00. The two debts which are both
demandable are unsecured. Petalcorin remits P4,500.00 to Dulzura in payment of his debt to
her. Accordingly, Dulzura issues a receipt for her own credit. To which credit should the
payment be applied?
a. To Dulzuras credit because the payment made by Petalcorin is intended for his debt to
Dulzura who issues her own receipt.
b. To both the partnership credit and Dulzuras credit proportionately at P1,500.00 and
P3,000.00, respectively.
c. To Dulzuras credit because its amount is greater than that of the partnership credit.
d. To the partnership credit because the managing partner should not prefer her own
interest to that of the partnership.
106.
Joseph, Aris, Dex and Earl are partners in JADE Enterprises, a jewelry store, with Joseph
contributing P50,000.00; Aris, P20,000.00; and Dex, P30,000.00. Earl is an industrial partner
and manages the partnership. Based on the foregoing information, which one of the following
statements is false?
a. Joseph may engage in the buying and selling of rice without the consent of the other
partners
b. Earl may engage in the buying and selling of rice without the consent of the other
partners
c. Earl is not liable for the losses of the partnership
d. Earl may be held liable by third persons for partnership debts with her separate property
107.
MARILEN Company is owned by the following partners with their respective
contributions: Mary, P10,000.00; Anna, P20,000.00; Rose, P30,000.00; Irma, P40,000.00;
Liza, P50,000.00; Edna, P100,000.00; and Nora, P200,000. Except for Edna and Nora, all the
rest are managers without any specification as to their respective duties. Mary wants to buy
goods from Excellent Company. Liza opposes. Anna and Rose side with Mary while Irma
sides with Liza.
a. The group of Mary will prevail because they constitute the majority.
b. The group of Liza will prevail because they constitute the controlling interest.
c. The group of Mary will prevail because they constitute the controlling interest.
d. Suppose Rose abstains, the group of Mary will prevail.
108.
a.
b.
c.
d.
Which of the following will not cause the automatic dissolution of a general partnership?
Death of a capitalist partner
Insolvency of a capitalist partner
Insanity of an industrial partner
Civil interdiction of an industrial partner
109.
A person admitted to all the rights of a limited partner who has died or has assigned his
interest in the partnership is known as
a. An ostensible partner
b. A liquidating partner
c. A substituted limited partner
d. A general-limited partner
110.
What is the order of payment of liabilities of a dissolved general partnership using the
code number representing each liability?
I. Those owing to partners than for capital or for profits
II. Those owing to creditors other than partners
III. Those owing to partners in respect of profits
IV. Those owing to partners in respect of capital
a. I, II, III, IV
b. II, I, IV, III
c. II, I, III, IV
d. I, II, IV, III
111.The articles of incorporation differ from the by-laws in that the articles of incorporation are:
a. The rules of action adopted by a corporation for its internal government
b. Adopted before or after incorporation
c. A condition precedent in the acquisition by a corporation of a juridical personality
d. Approved by the stockholders if adopted after incorporation
112.
a.
b.
c.
d.
113.
a.
b.
c.
d.
114.
Every corporation incorporated under the Corporation Code has the power and capacity
a. To adopt and use a corporate seal
b. Non-stock corporation
d. Corporation by estoppels
122.
How many number of votes of the board of directors are required to change the name of
a corporation?
a. 2/3 of all members of the board
b. 2/3 vote of all present
c. Majority vote of all present constituting a quorum
d. Majority vote of the board
123.
In the matter of managing the business of the corporation, the exercise of corporate
power and handling of corporate properties this is supreme:
a. 2/3 approval of the stockholders of the corporation
b. Majority vote of the OCS of the corporation
c. Majority vote of the Board of Directors
d. The President of the corporation.
124.
a.
b.
c.
d.
125.
a.
b.
c.
d.