Law On ObliCon and ParCor

Law on ObliCon and ParCor
1.The following are the requisites of an obligation, except

A. Passive and active subject C. Efficient cause
B. Prestation D. Demand
2.The right of the creditor that is enforceable against a definite debtor is

A. Real right C. Moral right
B. Natural right D. Personal right
3. Which of the following is a civil obligation?

A. X obliges himself to pay Y P10,000 on October 30, 2009.
B. A is a debtor of B for P20,000 due on September 30, 1995.
C. The obligation of a husband and wife to observe fidelity.
D. The obligation of a catholic to hear mass every Sunday.
4. Specific performance may not be possible in this civil obligation

A. A, a painter, obliges himself to paint the portrait of B on April 9, 2009
B. C, a farmer, obliges himself to give his only cow to D on February 14, 2009
C. E, a veterinarian, obliges himself to give one of his dogs to F on May 1, 2009
D. G, a registrar of deeds, obliges himself to effect registration of H’s parcel of land on February 28, 2009.
5. The source of obligations which is a rule of conduct, just and obligatory, promulgated by legitimate
authorities for common good, benefit and observance
A. Contracts C. Delicts
B. Quasi-contracts D. Law
6. A juridical necessity to give, to do or not to do

A. Civil obligation C. Moral obligation
B. Natural obligation D. Social obligation
7. They give a right of action to compel their performance

A. Civil obligation ` C. Natural obligation
B. Moral obligation D. Social obligation
8. The obligee has a right to enforce the obligation against the obligor in a court of law
A. Civil obligation C. Natural obligation
9. This is based on equity and justice

A. Civil obligation C. Natural obligation
10. The person in whose favor the obligation is constituted

A. Obligor C. Passive subject
B. Obligee D. Debtor
11. Synonymous to obligee

1. Creditor 2. Active subject 3. Debtor 4. Passive subject
A. 1 and 2 C. 2 and 3
B. 1 and 4 D. 3 and 4
12. The person who has the duty of giving, doing or not doing.
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A. Obligee C. Active subject
B. Obligor D. Creditor
13. Synonymous to obligor

1. Creditor 2. Active subject 3. Debtor 4. Passive subject
A. 1 and 2 C. 2 and 3
B. 1 and 4 D. 3 and 4
14. The object or subject matter of the obligation

A. Prestation C. Active Subject
B. Vinculum D. Passive subject
15. The efficient cause or juridical tie why the obligation exists
A. Active subject C. Prestation
B. Passive subject D. Vinculum
16. The duty not to recover what has voluntarily been paid although payment was no longer required
B. Natural obligation D. Juridical obligation
17. The following are sources of obligations derived from law, except
A. contracts C. delicts
B. quasi-contracts D. quasi-delicts
18. Cannot be enforced by court action and depend exclusively upon the good conscience of the debtor.
A. civil obligation C. moral obligation
B. natural obligation D. social obligation
19. A owes B P1,000. A, knowing that the debt has prescribed, nevertheless, still pays B. Can A recover
what he voluntarily paid?
First answer Yes, because B has no right to demand the payment effected by A.
Second Answer No, the payment extinguished the natural obligation.
A. Both answers are correct. C. Only the first is correct.
B. Both answers are wrong. D. Only the second is correct.
20. The duty to pay taxes and support one’s family are obligations arising from
A. Law C. Quasi-contracts
B. Contracts D. Delicts
21. The obligation of husband and wife to render mutual help and support arises from
A. Contract C. Quasi-contract
B. Law D. Quasi-delict
22. A supports B, a minor, because B’s father refuses to support B. The father is obliged to
reimburse A. The source of obligation is
A. contracts C. delicts
B. quasi-contracts D. quasi-delicts
23. A juridical relation resulting from a lawful, voluntary, and unilateral act and which has for its purpose
the payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of
another.
A. Contract C. Delicts
B. Quasi-contract D. Quasi-delicts
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24. When a person voluntarily takes charge of another’s abandoned business or property without the
owner’s authority where reimbursement must be made for necessary and useful expenses.
A. Quasi-contract C. Negotiorum gestio
B. quasi-delict D. Solutio indebiti
25. When something is received when there is no right to demand it, and it was unduly delivered thru
mistake, the recipient has the duty to return it.
B. Quasi-delict D. Solutio indebiti
26. - A quasi-contract is an implied contract.

- A defendant who is acquitted in a criminal case is no longer liable civilly.
A. True; true C. False; true
B. True; false D. False; false
27. Tort or culpa aquiliana is

28. A fault or act or omission of care which causes damage to another, there being no preexisting
contractual relations between the parties.
29. Omission of the diligence which is required by the circumstances of person, place and time.
A. Ignorance C. Impotence
B. Negligence D. Insanity
30. Unless the law or the stipulation of the parties require another standard of care, every person obliged
to give something is also obliged to take care of it with the proper diligence.
A. Observing utmost care. C. Of a father of a good family
B. Observing extraordinary diligence D. Observing ordinary diligence
31. Ordinary diligence is

A. Diligence of a good father of a family. C. Diligence required by law
B. Extraordinary diligence D. Diligence of a father of a good family.
32. The creditor has the right to the fruits of the thing.
A. From the time the obligation to deliver it arises.
B. From the time the fruits have been delivered.
C. From the time there is meeting of the minds.
D. From the perfection of the contract.
33. From the time the fruits have been delivered, the creditor shall acquire
A. Real right C. Moral right
B. Personal right D. Inchoate right
34. If A sells to B a fountain pen, the giving by A to B of the fountain pen is

A. Actual tradition C. Symbolical tradition
B. Constructive delivery D. Traditio longa-manu
Items 35-39 A kind of constructive delivery whereby:

35. There is delivery when the keys of a warehouse are given.
A. Traditio simbolica C. Traditio brevi-manu
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B. Traditio longa-manu D. Traditio constitotum possessorium
36. There is delivery by mere consent or pointing out of an object.

37. A possessor of a thing not as an owner, becomes the possessor as owner.

38. A possessor of a thing as an owner retains possession no longer as an owner, but in some other
capacity
39. The opposite of brevi-manu

A. Longa-manu C. Constitutom possessorium
B. Simbolica D. Quasi-tradition
40. If a thing is capable of particular designation.

A. Generic C. Indeterminate
B. Specific D. Indeterminable
41. If a thing refers to a class, to a genus and cannot be pointed out with particularity.
A. Generic C. Determinate
B. Specific D. Indeterminable
42. A wife was about to deliver a child. Her parents brought her to the hospital. Who should pay the
expenses for medical attendance?
Answer 1 – The husband, because it is his duty to support his wife and support includes
medical attendance.
Answer 2 – The parents, because they were the persons who brought the “wife” to the
hospital.
A. Both answers are correct. C. Only the first is correct.
B. Both answers are not correct. D. Only the second is correct.
43. The following are kinds of fruits of an obligation, except

A. natural C. civil
B. industrial D. penal
44. Spontaneous products of the soil and the offspring and other products of animals
A. natural C. civil
45. Products of the soil through cultivation or intervention of human labor.

A. natural C. civil
46. Fruits arising out of contracts- like rental payments.

A. natural C. civil
47. When does the obligation to deliver arise?

Answer 1 – If there is no term or condition, then from the perfection of the contract.
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Answer 2 – If there is a term or condition, then from the moment the term arrives or the condition
happens.
48. A is obliged to give B 10 kilos of sugar, which of the following is not correct?
A. B can demand that A obtain the sugar and deliver it to him.
B. B can just buy 10 kilos of sugar and charge the expense to A.
C. A can insist on just paying B damages or the monetary value of the sugar.
D. B may require another person to deliver the sugar and charge the expenses to A.
49. Where demand by the creditor shall be necessary in order that delay may exist.
A. When time is of the essence of the contract.
B. When demand would be useless.
C. When the obligor has expressly acknowledged that he is in default.
D. When the obligor requested for an extension of time.
50. Debtor’s default in real obligation.

A. Mora accipiendi C. Mora solvendi ex-persona
B. Mora solvendi ex-re D. Compensatio morae
51. Debtor’s default in personal obligation.

52. Default on the part of the creditor

53. Default on the part of both parties.

54. A borrowed money from B payable on December 10, 2008. If A failed to pay on due date, will A be in
delay?
A. Yes, because there is stipulation as regards the due date.
B. Yes, if the obligation is in writing.
C. No, because demand has not been made by B.
D. No, if A has the money to pay B.
55. Damages awarded for mental and physical anguish.

A. Moral C. Nominal
B. Exemplary D. Temperate
56. Damages awarded to vindicate a right.

A. Liquidated C. Nominal
B. Actual D. Exemplary
57. Damages awarded to set an example.

A. Exemplary C. Nominal
B. Liquidated D. Moral
58. When the exact amount of damages cannot be ascertained.

A. Exemplary C. Temperate
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59. Damages determined beforehand.

A. Temperate C. Actual
60. A obliged himself to deliver to B the following:

1) 2008 Sing-It Yamaha Organ
2) Magalona passenger jeepney with engine No. 69 and chasis No. 88
First Statement- In case A failed to deliver the 2008 Yamaha Organ, the court may compel A to deliver the
2008 Yamaha Organ plus damages
Second Statement - In case A failed to deliver the jeepney, the court may compel A to deliver the jeepney
plus damages.
61. I – If a person obliged to do something fails to do it, the same shall be executed at his cost.
II - Those who in the performance of their obligations are guilty of fraud, negligence, or delay and
those who in any manner contravene the tenor thereof, are liable for damages.
62. I - Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for
fraud is void.
II – If the law or contract does not state the diligence which is to observed in the performance of
an obligation, that which is expected of a father of a good family shall be required.
63. I – The receipt of a later installment of a debt without reservation as to prior installments, shall
give rise to a rebuttable presumption that such installments have been paid.
II – If a taxpayer pays his income tax liability for the current year, there is a presumption that tax
liability for the previous year has been paid.
64. With regard to the right as to the fruits of the thing, which is not correct?
A. If the obligation is subject to a suspensive condition, the obligation to deliver arises from the moment
the condition happens.
B. If the obligation is subject to a suspensive condition, the obligation to deliver arises upon the expiration
of the term or period.
C. If there is no condition or term for its fulfillment, the obligation to deliver arises from the perfection of
the contract or creation of the obligation.
D. If the obligation arises from the contract of sale, the vendor has a right to the fruits of the thing
from the time the obligation to deliver arises.
65. A is obliged to deliver his only car to B on November 20, 2009. If A does not deliver, and on November
22, 2009, a typhoon destroys the car.
A. A is not liable because the obligation is extinguished.
B. A is liable because he is in delay.
C. A and B will divide the loss equally.
D. A’s obligation is converted into a monetary obligation.
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66. I – When what is to be delivered is a determinate thing, the creditor may compel the debtor to
make the delivery and if the debtor refuses, the creditor may ask that the obligation be complied
with at the expense of the debtor.
II – The obligation to give a determinate thing includes that of delivering all its accessions and
accessories, even though they may not have been mentioned.
67. What is the basis of the liability of a school when a student is stabbed inside the campus by a stranger
in the school?
A. Contracts C. Delicts
B. Quasi-contracts D. Quasi-delicts
68. The following except one, are included in civil liability. The exception is
A. Restitution C. Indemnification
B. Reparation D. Starvation
69. The thing itself shall be restored, as a rule

70. The court determines the amount of damage taking into consideration the price of the thing and its
sentimental value to the injured person.
71. The consequential damages suffered by the injured person and those suffered by his family or third
person by reason of the act.
72. Action to impugn or rescind acts or contracts done by the debtor to defraud the creditors.
A. Accion reinvindicatoria C. Accion subrogatoria
B. Accion pauliana D. Accion quanti-minoris
73. A borrower agreed that in case of non-payment of his debt, to render services as a servant. Which of
the following is not correct?
A. If the services will be rendered in satisfaction of the debt, the stipulation is valid.
B. If the services will be “for free”, the stipulation is void for being contrary to law and morals.
C. If the services will not be gratuitous, specific performance of the service will be the proper
remedy in case of non-compliance.
D. Should there be a valid stipulation as regards the rendition of services, an action for damages should be
brought in case of non-compliance.
74. A ordered B, a 10 year old boy to climb a high and slippery mango tree with a promise to give him part
of the fruits. B was seriously injured when he fell while climbing the tree. Is A liable?
First Answer - No, because no person shall be responsible for fortuitous events.
Second Answer – Yes, because A is negligent in making the order without taking due care to avoid
a reasonable foreseeable injury to B.
75. A pays for B’s transportation fare, without B’s knowledge and later discovers that B was entitled to
half-fare. Which is not correct?
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A. A can recover the half-fare from B. C. A can recover ½ from B and ½ from the carrier.
B. A can recover the half-fare from the carrier. D. A can recover half-fare from B only.
76. A borrowed P100,000 from B. the loan was secured by a mortgage of A’s land in favor of B. Without
the knowledge of A, C paid B the sum of P100,000 for A’s debt. As a result
A. C may foreclose the mortgage on A’s land if A cannot pay.
B. C cannot claim reimbursement from A in as much as the payment was made without knowledge of B.
C. C can recover the amount from B in case A refuses to reimburse C.
D. The obligation of A to B was extinguished but A should reimburse C the amount of P100,000
because he was benefited by the payment.
77. When the debtor of a debtor is ordered not to pay the latter so that preference would be given to the
latter’s creditor.
A. Garnishment C. Injunction
B. Interpleader D. Attachment
78. A obtained a loan from B bank. The loan was embodied in several promissory notes. As security the
borrower executed a chattel mortgage on his standing crops. Said crops were however subsequently
destroyed by typhoon “Rosing”. Is A still liable for the loan despite the destruction of the crops by a
fortuitous event?
1st Answer - Yes, the obligation of A was to deliver a generic thing – money.
2nd Answer – No, the obligation was to deliver determinate things – the standing crops.
79. A sold a half-interest in his specific car to B. It was agreed that the price to be paid by B would be used
in installing a new engine on the car. Later, the car was destroyed by a fortuitous event. Is B’s obligation
to pay the price extinguished?
1st Answer - Yes, there is no more use of installing a new engine since the car has already been
destroyed by a fortuitous event.
2nd Answer – No, B must still pay because his obligation to pay in generic.
80. I – A commits the crime of theft and is asked to return the car to its owner B. If, before the car is
delivered to B it is destroyed by a fortuitous event, Is A’s liability extinguished?
II – Using above statement, A had previously asked the owner to accept the car, but the owner
without any justifiable reason refuses to accept the car, and it is destroyed by a fortuitous event, Is
A’s liability extinguished?
A. Yes; Yes C. Yes; No
B. No; Yes D. No; No
81. I - There is no delay in an obligation not to do something.

II – Solutio indebiti and negotiorum gestio are implied contracts.
82. I - Consent of the parties is required in quasi-contract.

II – The creditor acquires real rights over the thing from the time the obligation to deliver arises.
83. The creditor has a right to the fruits of the thing from the time
A. The thing is delivered. C. The obligation to deliver the thing arises.
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B. The fruits are delivered. D. The sale is perfected.
84. The buyer has a right to the fruits of the thing from the time
A. The thing is delivered. C. The obligation to deliver the thing arises.
B. The fruits are delivered. D. The sale is perfected.
85. Which is not considered as quasi-contract?

A. Solutio indebiti
B. Negotiorum gestio
C. When the third person with the knowledge of the debtor, pays the debt.
D. Reimbursement due the person who saved property during fire or typhoon without the knowledge of
the owner.
86. No longer enforceable by court action but is binding on the party who oblige with it in conscience is
B. Natural obligation D. Conditional obligation
87. If A pays a debt that has prescribed

1. Not knowing it has prescribed, A can recover on the ground of undue payment.
2. Knowing it has prescribed, A cannot recover for this would be a case of natural obligation.
A. Both 1 and 2 are true C. Only 2 is true
B. Only 1 is true D. Both 1 and 2 are false
88. On June 24, 2009 A is obliged to give B his specific car. There was no delivery until June 30 when the
garage of the car collapsed due to heavy rain and strong winds of Typhoon Ondoy, and the car was totally
destroyed. Is A still liable?
A. No, even if A was in default, he could plead impossibility of performance.
B. Yes, because the contract is perfected.
C. No, because there was no demand by B to deliver the car.
D. Yes, the obligation to deliver the car is changed to pay the equivalent value because B is in legal delay.
89. This obligation is demandable at once when it

A. has a resolutory condition. C. is with a term ex-die.
B. has a suspensive condition D. has a period.
90. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be
deemed to be with a
A. Resolutory period C. Potestative condition
B. Suspensive condition D. Period.
91. A promise to give B his Volvo car if B passes the CPA Board Exams. Pending the results of the exams,
the car is destroyed by a fortuitous event without any fault on the part of A, As a result
A. The obligation of A is extinguished.
B. The obligation of A is converted into monetary obligation.
C. The obligation of A will equitably reduced.
D. A will have to give B another car of equivalent value.
92. A period with a suspensive effect.

A. I will support you beginning January 1 of next year.
B. I will support you until January 1 of next year.
C. I will support you if A dies of TB.
D. I will support you if A marries B.
93. A period with a resolutory effect.
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A. I will support you beginning January 1 of next year.
B. I will support you until A dies.
C. I will support you if A dies.
D. I will support you if A dies of TB.
94. The obligation begins only from a day certain or upon the arrival of said period.
A. Ex die C. Conditional
B. In diem D. With a period
95. The obligation remains valid up to a time certain but terminates upon the arrival of said period.
A. With a period C. Ex die
B. Conditional D. In diem
96. Anything paid or delivered before the arrival of the period, the obligor being unaware of the period or
believing that the obligation has become due and demandable.
A. May be recovered without interests. C. May be recovered with fruits and interests.
B. May be recovered with interests. D. May not be recovered.
97. Whenever in an obligation a period is designated, it is presumed to have been established for the
benefit
A. Of both the creditor and debtor C. Of the debtor only
B. Of the creditor only D. Of third persons
98. This is a valid obligation.

A. A will give B P100,000 if B will kill C.
B. A will give B P1,000,000 if B will agree to be the mistress of A.
C. A will give B P100,000 if B can make C rise from the dead.
D. A will give B P1,000 if B will not pose nude in a painting session.
99. Where two or more prestations have been agreed upon but only one is due, the obligation is
A. Alternative C. Conjoint
B. Facultative D. Solidary
100. Using the preceding number, the right of choice, belongs

A. To the debtor C. To both the creditor and debtor
B. To the creditor D. To third person
101. A is obliged to give B, at A’s option either object No. 1, Object No. 2, or Object No. 3. If all objects were
lost thru A’s fault, which is correct?
A. The value of the first thing lost plus damages must be given to B.
B. The value of the last thing lost plus damages must be given to B.
C. The value of any of the things lost plus damages must be given to B.
D. The obligation is extinguished.
102. I - Using the preceding number, if objects nos. 1 1and 2 were destroyed by a fortuitous event and
later object No. 3 is destroyed by A’s fault, A would still be liable.
II - Using the preceding number, if objects nos. 1 1and 2 were destroyed by A’s fault and later
object No. 3 is destroyed by fortuitous event, A would still be liable.
103. A is obliged to give B either objects No. 1 or No. 2 or No. 3 at B’s option. Before B communicated his
choice to A. object No. 1 had been destroyed, thru A’s fault and object No. 2 had been destroyed by a
fortuitous event. B may
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A. Demand object No. 3 only as it is still available.
B. Demand the price of object No. 1 only plus damages because it was destroyed by A’s fault.
C. Demand the value of object No 2 as the right of choice belongs to B.
D. Demand either object No. 3 or the price of object No. 1 plus damages.
104. Any of the debtors is bound to render compliance of the entire obligation.
A. alternative C. joint
B. facultative D. solidary
105. In a joint obligation, joint means any of the following, except

A. pro-rata C. mancomunada simple
B. proportionate D. individually and collectively
106. In Facultative obligations, if substitution has been made, which of the following is false?
A. The obligation is extinguished.
B. The loss of the original prestation is immaterial.
C. The obligation is converted into a simple obligation.
D. The obligation ceases to be facultative.
107. Using the preceding number, and the substitute is lost by a fortuitous event, which is true?
B. The debtor is liable for damages.
C. The original prestation must be given.
D. The debtor must give another object which is equally satisfactory.
108. Using the preceding number, but the substitute is lost due to debtor’s fault, which is true?
B. The debtor is liable for damages.
C. The original prestation must be given.
D. The debtor must give another object which is equally satisfactory.
109. Instances where the law imposes solidary liability, except

A. obligations arising from tort.
B. obligations of bailees in commodatum.
C. liability of principals, accomplices and accessories of a felony.
D. liability of partners arising out of a contract.
110. This will result to a solidary liability

A. vitiated consent on the part of one of the debtors.
B. insolvency of one of the debtors.
C. default on the part of one of the debtors.
D. quasi-delict commited by one of the partners acting in the ordinary course of business.
111. Where only one prestation has been agreed upon, but the obligor may render another in
substitution, the obligation is
112. Where two or more prestations have been agreed upon, and all of them must be performed,
the obligation is
113. A and B are solidary debtors of C and D, solidary creditors, to the amount of P1,000. C can demand
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A. P1,000 from A or P1,000 from B C. P500 from A or P500 from B
B. P1,000 from A and P1,000 from B D. P500 from A and P500 from B
114. A and B solidary debtors of C and D, joint creditors, to the amount of P1,000 – C can demand
A. P1,000 from A or P1,000 from B C. P500 from A and P500 from B
B. P500 from A or P500 from B D. P250 from A and P250 from B
115. A and B joint debtors of C and D, solidary creditors, to the amount of P1,000 – C can demand
A. P1,000 from A or P1,000 from B C. P500 from A and P500 from B
B. P500 from A or P500 from D. P250 from A and P250 from B
116. A and B are joint debtors of C and D, joint creditors, to the amount of P1,000 – C can demand
A. P500 from A or P500 from B C. P250 from A and P250 from B
B. P250 from A or P250 from B D. P500 from A and P500 from B
117. This is synonymous to joint obligation

A. Joint and several C. Individually and collectively
B. In solidum D. Mancomunada simple
118. This is synonymous to solidary obligation

A. Pro-rata C. Proportionate
B. Mancomunada D. Juntos o separadamente
119. A, B and C are joint debtors of D for P3,000.If A is insolvent, how much should B pay D?
A. P1,000 C. P2,000
B. P1,500 D. P3,000
120. In 2007, A, B and C bound themselves in solidum to give D P9,000 subject to the following
conditions: A will pay in 2007, B, if D passes the 2008 CPA board exams and C will pay in 2009. In 207,
how much can D demand from C?
A. P9,000 C. P3,000
B. P6,000 D. P 0
121. A, B and C are solidary debtors of D for P3,000. D remitted C’s share. A therefore paid later only
P2,000. A can recover reimbursement from B in the amount of
A. P1,000 C. P500
B. P1,500 D. P0
122. Using the preceding number, if B is insolvent, A can recover from C the amount of
A. P1,000 C. P500
B. P1,500 D. P0
123. A, B and C are solidary debtors of D for P1,000. D remitted the entire obligation when A offered to
pay. A can demand reimbursement from B in the amount of
A. P1,000 C. P333
B. P500 D. P0
124. A, B and C are solidary debtors of D for P3,000 but A was incapacitated to give his consent as he was
a minor. If D sues B, how much will B be liable for?
A. P3,000 C. P1,000
B. P2,000 D. P 0
125. Using the preceding number, if D sues A, how much will A be liable for?
A. P3,000 C. P1,000
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B. P2,000 D. P 0
126. A is indebted to solidary creditors B, C, and D, for P90,000. Without the knowledge of B and C, D
remitted the obligation of A, as a result,
A. The obligation of A to pay P90,000 is extinguished.
B. The obligation is not extinguished because there is no consent from B and C.
C. The obligation is extinguished only up to P30,000.
D. The obligation is extinguished up to P60,000.
127. A, B and C borrowed P6,000 from D and E, payable in 3 months with A giving in pledge her diamond
ring as security for the amount borrowed. How much can E collect from C?
A. P1,000 C. P3,000
B. P2,000 D. P6,000
128. A is obliged to give B her college ring. If she fails to do so, she must give P10,000. This is
A. Alternative obligation C. Facultative obligation
B. Conjoint obligation D. Obligation with a penal clause
129. Where the penalty takes the place of indemnity for the damages and for the payment of interest.
A. Where there is stipulation to the effect that damages or interest may still be recovered, despite the
presence of the penalty clause.
B. When the debtor refuses to pay the penalty imposed in the obligation.
C. When the debtor is guilty of fraud or dolo in the fulfillment of the obligation.
D. Where there is breach of the obligations.
130. This is an obligation with a resolutory obligation.

A. I’ll give you P10,000 if you pass the 2009 CPA board examination.
B. I’ll give you my car now, but should you fail in any of your subjects, your ownership will cease
and it will be mine again.
C. I’ll give you P10,000 on December 31, 2009.
D. I’ll give you P10,000 if A dies of TB.
131. I - If the condition is potestative on the part of the debtor, the obligation is void.
II - If the condition is potestative on the part of the creditor, the obligation is valid.
132. A owns a house rented by B. A sold the house to C where C agreed to pay the balance of the purchase
price as soon as B leaves the premises. It was further agreed that C will take care of seeing to it that B
vacates the house. Which is correct?
A. The contract is void because it is potestative on the part of C.
B. The contract is void because the consent of B was not obtained.
C. The contract is valid because the condition is mixed.
D. The contract is valid if B is willing to vacate the premises.
133. I – The condition that some event happens at a determinate time shall extinguish the obligation as
soon as the time expires or it has become indubitable that the event will not take place.
II – The condition that some event will not happen at a determinable time shall render the obligation
effective from the moment the time indicated has elapsed, or it has become evident that the event cannot
occur.
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134. I - A father promised to give his son if the son will marry B this year. If by the end of the year, B is
already dead or the son has not married B, the obligation to give a car is effective and demandable.
II - A father promised to give his daughter a car if the daughter will not marry her boyfriend earlier than
December 31,2009. If by December 31, 2009, has not yet married her boyfriend, or if prior thereto, her
boyfriend has died, the obligation is extinguished.
135. I - Obligations with a resolutory period take effect at once, but terminate upon arrival of the day
certain.
II - Obligations with a resolutory condition take effect at once, but terminate upon happening of the
condition.
136. A borrowed money from B and pledged her ring as security. It was agreed that A was to pay the
money loaned with interest at the end of one year. Before the expiration of the one-year period.
A. A may compel B to accept her payment.
B. A may be allowed to pay B, if B consents.
C. A may compel B to accept her payment because the period is deemed for the benefit of A.
D. B may refuse A’s payment as the period is deemed for the benefit of B.
137. The debtor shall lose every right to make use of the period, except
A. When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or
security for the debt.
B. When he does not furnish the creditor the guarantees or securities which he has promised.
C. When through fortuitous events or by his own acts the guaranties or securities have been
impaired, unless he immediately gives new ones equally satisfactory.
D. When the debtor violates any undertaking in consideration of which the creditor agreed to the period.
138. I - “We promise to pay” when there are two or more signatures=joint liability
II – “ I promise to pay” when there are two or more signatures= solidary liability
139. A oblige himself to pay B P100,000 in 30 days plus a penalty of P10,000 if A fails to pay the obligation
in due time. A failed to pay the obligation in 30 days, B can demand from A
A. The principal of P100,000 plus P10,000 penalty.
B. The principal of P100,000 plus P10,000 penalty plus legal interest.
C. The principal of P100,000 plus P10,000 penalty, plus legal interest, plus damages.
D. The principal of P100,000 plus legal interest, plus damages.
140. The creditor is entitled to recover damages and interest in addition to the penalty stipulated
1. When the debtor refuses to pay the penalty.
2. When the debtor is guilty of fraud in the fulfillment of the obligation.
141. Action where a person in possession of certain property may bring an action against the conflicting
claimants to compel them to interplead and litigate their several claims among themselves.
142. A judicial process by virtue of which a person is generally ordered to refrain from doing something
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143. Where a property is alienated to the creditor in satisfaction of a debt in money.

A. Dation in payment C. Application of payment
B. Payment by cession D. Consignation
144. Where a debtor transfers all his properties not subject to execution in favor of his creditors so that
the latter may sell them and thus apply the proceeds to their credits.
A. Dation in payment C. Application of payment
B. Cession D. Consignation
145. The act of offering the creditor what is due him together with a demand that the creditor accept the
same.
A. Application of payment C. Datio in solutum
B. Tender of payment D. Cession
146. The act of depositing the thing due with the court or judicial authorities whenever the creditor
cannot accept or refuses to accept payment.
A. Tender of payment C. Application of payment
B. Consignation D. Datio in solutum
147. The meeting in one person of the qualities of creditor and debtor with respect to the same obligation.
A. Confusion C. Novation
B. Compensation D. Condonation
148. When two persons on their own right are creditors and debtors of each other
B. Compensation D. Condonation
149. This is not necessary in order that compensation may prosper.

A. That the two debts are both due.
B. That the two debts be liquidated and demandable.
C. That there be retention or controversy commenced by third persons and communicated in due
time to the debtor.
D. Both debts consists in a sum of money, or if the things due are consumable, they be of the same kind,
and also of the same quality if the latter has been stated.
150. Compensation cannot take place, except

A. When one debt arises from the obligations of a depositary.
B. When one debt arises from the obligations of a bailee in commodatum.
C. When one debt arises because of a claim for support due to gratuitous title.
D. When one debt arises from a bank deposit.
151. The substitution or change of an obligation by another, which extinguishes or modifies the first
B. Compensation D. Consignation
152. Novation which changes the object or the principal condition of the obligation
A. Real C. Mixed
B. Personal D. Partial
153. Novation which changes the parties to the obligation

A. Real C. Mixed
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154. Expromission, delegacion or subrogating a third person in the right of the creditor.
A. Real C. Mixed
155. Novation which changes the object and parties of the obligation.
A. Real C. Mixed
156. Substitution of debtor where the initiative comes from a third person.
A. Delegacion C. Subrogation
B. Expromission D. Novation
157. Substitution of debtor where the initiative comes from the debtor.
158. The transfer to a third person of all the rights appertaining to the creditor.
159. Legal subrogation is presumed in the following. Which is not correct?

A. When a third person, not interested in the obligation, pays with the approval of the creditor.
B. When a creditor pays another creditor who is preferred, even without the debtor’s knowledge.
C. When a third person, not interested in the obligation, pays with the express or tacit approval of the
debtor.
D. When, even without the knowledge of the debtor, a person interested in the fulfillment of the obligation
pays, without prejudice to the effects of confusion as to the latter’s share.
160. I - Proof of actual damages suffered by the creditor is not necessary in order that the penalty
previously agreed upon may be demanded.
II – Proof of actual damages suffered by the creditor is not necessary in an obligation with a penal
clause.
CONTRACTS
1.A delivered his bracelet to B for B’s necklace. No written agreement was signed by the parties. Which of
the following is appropriate description of the contract between A and B?
A. Onerous and bilateral C. Bilateral and innominate
B. Bilateral and innominate D. Aleatory and nominate
2.They are the elements that are found in certain contracts and are presumed to exist unless set aside by
the parties
A. Accidental elements C. Artificial elements
B. Natural elements D. Incidental elements
3.They refer to the elements that may be stipulated by the contracting parties
A. Accidental elements C. Artificial elements
B. Natural elements D. Incidental elements
4.The following are some accidental elements of a contract of sale, except

A. Terms of payment C. Place of payment
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B. Interest rate D. Accession and accessories
5. A contract where the cause with respect to each contracting party is the prestation or the promise of a
thing or service by the other is
A. An onerous contract C. An innominate contract
B. A gratuitous contract D. An aleatory contract
6. A contract where one party receives no valuable consideration and the cause is the liberality of the
benefactor is
A. A gratuitous contract C. An onerous contract
B. A unilateral contract D. A commutative contract
7. A delivered his van to B for the latter’s use for one week without any compensation. The cause of the
contract is
A. The van of A C. The period of one week
B. The generosity of A D. The delivery of the van
8. The principle that contracting parties may establish such stipulations, clauses, terms and conditions as
they may deem convenient, provided they are not contrary to law, moral, public policy and public order,
refer to the principle of
A. Liberty of contract C. Consensuality of contract
B. Relativity of contract D. Mutuality of contract
9. The following instances will render an offer ineffective before acceptance is conveyed. Which one will
not? When one of the parties
A. Is civilly interdicted C. Becomes insane
B. Becomes insolvent D. Is placed under a hypnotic spell
10. The following statements pertain to the cause of a contract. Which statement refer to motive?
A. It is the essential reason of a contract.
B. It is always known to the contracting parties
C. It is illegality does not affect the validity of the contract
D. there will be no contract without it
11. The bargaining point, that is, when negotiation is in progress (stage in the life of a contract)
A. Consummation C. Perfection
B. Conception D. Birth
12. The meeting of minds regarding the object and cause of the contract (stage in the life of a contract)
A. Conception C. Death
B. Preparation D. Birth
13. The point where the parties have performed their respective obligations and the contract is
terminated
A. Preparation C. Perfection
B. Conception D. Consummation
14. When there is concurrence of offer and acceptance, there is

A. Payment C. Consent
B. Consignation D. Tender of payment
15. An absolutely simulated or fictitious contract is

A. Void C. Rescissible
B. Voidable D. Unenforceable
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16. A sold to B his cow for P5,000. No date is fixed by the parties for the performance of their respective
obligations. The obligation of A is
A. To deliver the cow immediately as there is a perfected contract.
B. To deliver the cow within the reasonable time from the perfection of the contract
C. To deliver the cow upon the payment by B of P5,000
D. To rescind the contract as there is no time fixed for the delivery and payment.
17. A owes B P10,000 due on March 10, 2010. A owes B P8,000 due on March 11, 2010. A obliged himself
to deliver to B a cow valued at P6,000 on March 12, 2010. On March 13, 2010, a paid B P10,000. If A
makes an application of payment,
A. The P10,000 should be applied to the first debt only
B. The P10,000 should be applied to the second debt only
C. The P10,000 may be applied either to the first debt or second debt
D. The P10,000 may be applied to the first debt, or to the second debt or to the third debt
18. A contract where both contracting parties are incapable of giving consent is
A. Void C. Unenforceable
B. Rescissible D. Voidable
19. The conception of a contract is when

A. When there is meeting of the minds C. When the contract is executed
B. When negotiations are in progress D. When the parties come to an agreement
20. Contract which has no effect at all

A. Rescissible C. Unenforceable
B. Voidable D. Void
21. Contract which cannot be ratified

B. Voidable D. Void
22. If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the parties
to a contract, the proper remedy is
A. Ratify the contract C. Annulment of the contract
B. Ask for a specific performance D. Reformation of the contract
23. A sold his land to B. The sale was made orally. B paid the agree price. B wanted to have the sale
registered but he needs a public instrument. Which is correct?
A. B may sue A for the return of his money as no one shall be unjustly enriched at the expense of another.
B. B cannot demand the return of the purchase price because the sale is unenforceable.
C. B may compel A to execute the public instrument because the sale is valid.
D. B may only occupy and use the land as buyer in good faith
24. A is the guardian of B, a minor. B sold A’s land in writing to C valued at P1M for P.7M. The sale is (stage
in the life of a contract)
B. Voidable D. Void
25. Although validly agreed upon, courts can nullify this contract because of damage to one of the parties
or to a third person and its enforcement, may cause injustice by reason of some external facts
A. Rescissible contracts C. Unenforceable contracts
B. Voidable contracts D. Void contracts
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26. A contract where the fulfillment is dependent upon the chance, so the values may vary because of the
risk or chance.
A. Commutative C. Remunerative
B. Aleatory D. Gratuitous
27. A clause providing that the mortgagee will automatically own the property mortgaged if the debt is
not paid at maturity is
A. Dacion en pago C. Pactum Commissorium
B. Payment by cession D. Upset price
28. The contact must bind both contracting parties

A. Consensuality of contract C. Mutuality of contract
B. Simplicity of contract D. Relativity of contract
29. Not a characteristic of contract

30. Contracts are generally effective only between the parties, their assigns and their heirs
31. A stipulation in favor of a third person

A. Stipulation pour autrui C. Assignment of credit
B. Stipulation pour over D. Pactum commissorium
32. Not a requisite of stipulation pour autrui

A. The contracting parties must have clearly and deliberately conferred a favor upon third person
B. The stipulation must be part of the contract
C. The third person communicated his acceptance to the obligor before its revocation
D. There must be an agency between either of the parties and the third person
33. The following contracts are not perfected until the delivery of the object of the obligations, except
A. Pledge C. Commodatum
B. Deposit D. Sale
34. Pledge, deposit and commodatum are

A Consensual contracts C. Solemn contracts
B. Real contracts D. Formal contracts
35. Acceptance of an offer made by letter or telegram shall bind the offeror. From the time the
A. Offeree accepted the offer
B. Offeree sent his letter or telegram
C. Acceptance came to the knowledge of the offeror
D. Offeror made the offer
36. A contract where consent is given through mistake, violence, intimidation, undue influence or fraud is
B. Voidable D. Void
37. The mortgagor will execute an instrument to transfer the ownership over the property mortgaged to
the mortgagee if the debt is not paid at maturity is
A. Void C. Valid
B. Voidable D. Unenforceable
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75. A, B and C are jointly liable to D in the amount of P9,000. D assigns the entire credit to A. In this case
A. The obligation is extinguished because of confusion
B. B and C will not be liable to A
C. a becomes the new creditor and may demand from B and C P4,500 each
D. A’s share in the obligation is extinguished because of confusion.
90. One is not a requisite needed in order that obligation shall be extinguished by loss or destruction of
the thing due:
A. When the thing is lost without the fault of the debtor
B. When the thing lost is generic
C. When the thing is lost before the debtor has incurred in delay.
D. When the thing lost is specific
92. The obligation is demandable on the date of the obligation and shall continue to be in force up to the
arrival of the day certain:
A. Resolutory period C. Indefinite period
B. Suspensive period D. Legal period
96. Characteristic of void contracts, except

A. Defense of illegality cannot be waived
B. Cannot be ratified
C. Action for declaration of inexistense does not prescribe
D. The inexistence can be assailed by third person
99. Unless ratified, suits will not prosper if the contract is

B. Voidable D. Void
LAW ON PARCOR
1. All present properties are contributed
A. Universal partnership C. Limited partnership
B. General partnership D. None of the above
2. Composed of capitalist and industrial partners

3. Partners shall enjoy practically all the profits:

4. They have no voice in the management of partnership affairs:

A. Managing partners C. Both A and B
B. Silent partners D. None of the above
5. They have priority if the partnership is insolvent:

A. Separate creditors C. Both A and B
B. Partnership creditors D. None of the above
6. May contribute money, property or industry to the common fund:

A. Both general and limited partners C. General partners
B. Limited partner D. Capitalist partners
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7. One who takes charge of the winding up to partnership affairs upon dissolution:
A. Silent partner C. Ostensible partner
B. General partner D. Liquidating partner
8. A, B and C are partners. A contributed his services only; B, P20,000; and C, P10,000.The partnership
was liquidated. After payment of the partnership’s obligation, only P9,000 worth of assets remained. The
share of A will equal to:
A. P3,000 C. Equal of share of C
B. Equal of share of B D. 0
9. A and B entered into a universal partnership of all present property. The common property of the
partnership shall be:
A. All the properties which belonged to each of the partners at the time of the constitution of the
partnership.
B. All the properties which belonged to each of the partners after the constitution of the partnership.
C. All the properties which belonged to each of the partners at the time of the constitution of the
partnership as well as the profits which they may acquire therewith.
D. All the properties which belonged to each of the partners at the time of the constitution of the
partnership as well as the profits which they may acquire thereafter.
10. A capitalist partner engaged for his own account in an operation which is of the kind of business in
which the partnership is engaged. Said partner can be
A. Compelled to sell his interest in the partnership to the other capitalist partners.
B. Compelled to dissolve or discontinue the operation of his business
C. Compelled to bring to the common funds of the partnership any profits accruing to him from his
transactions.
D. Denied his share in the profits of the partnership.
11. 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
12. A, B and C are partners in a partnership. C contributed his industry. After payments of the
partnership’s obligations, only P6,000 cash remains. No other assets. In the absence of terms to the
contrary, the share of C in the remaining assets is:
A. Equal to share of A C. P2,000
B. Equal to the share of B D. Nothing
13. X, Y and Z are equal partners of Xyz Partnership. A owes the XYZ Partnership for p9,000. Z, a partner
collected from A, P3,000 before X and Y received anything. Z issued a receipt on the P3,000 as his share of
what A owes. When X and Y collected from A, A was insolvent.
A. Partner Z shall share partners X and Y with the P3,000
B. Z cannot be required to share X and Y with the P3,000
C. X and Y should first exhaust all remedies to collect from A.
D. X and Y can automatically deduct from the capital contributions of Z in the partnership their respective
share in the P3,000
14. A and B are partners in a real estate partnership . The partnership owns a piece of land which C
desired to buy. C contacted A and inform him of his desire to buy the land and A did not tell to B about it.
A bought B out of the partnership and afterwards sold the land to C with a big profit.
A. The partnership is dissolved when A became the sole owner
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B. The sale of the land to C is void because it was without the knowledge of B.
C. A is not liable to B for the latter’s share in the profits
D. A is liable to B for the latter’s share in the profits
.
15. A, B and C are partners in ABC Partnership. D represented himself as a partner in ABC Partnership to
E, who, on the belief of such representation, extended P50,000 credit to ABC Partnership. Assuming only
B and C consented to such representation, who will be held liable to E?
A. E extended the credit to ABC Partnership, so a partnership liability exists, thus, all the partners, A, B
and C are liable
B. B, C and D are partners by estoppels and thus, are liable prorate to E
C. Partners A, B and C who benefited from the credit extended by E are liable.
D. D who made the representation is liable to E
16. A and B are partners in a real estate business. A and B were approached by X who offered to buy a
parcel of land owned by the partnership. Thereafter, b sold to A, B’s share in the partnership. Then, A sold
the land to X at a big profit.
A. A is liable to B for B’s share in the profits
B. The partnership is dissolved when A became the sole owner
C. A is not liable to B for the latter’s share in the profits
D. The sale of the land to X is void.
17. One of the following incidents may be a cause for involuntary dissolution of a partnership. Which is?
A. Termination of the term of the partnership
B. Insolvency of any partner
C. Express will of any partner
D. Expulsion of any partner
18. A and B are equal partners in AB Partnership. Y presented himself as a partner in AB Partnership to Z,
who relying on such representation, extended P50,000 credit to AB Partnership. Of the two (2) partners
only B knew and consented to the representation of Y. Who should be held liable to Z?
A. Only Y, who presented himself as partner is liable.
B. Since the credit was extended to AB Partnership, a partnership liability was created, so the two (2)
partners and Y are liable.
C. Partners A and B who benefited from the credit extended to the partnership AB Partnership shall be
liable to Z.
D. B and Y are partners by estoppel and, thus, are liable to Z.
19. The following persons are disqualified to form a universal partnership. Who are the exception?
A. Brother and sister
B. Husband and wife
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense, if the partnership is entered into a consideration of the same.
20. A is the capitalist partner and B the industrial partner. A is engaged personally in the same kind of
business the partnership is engaged in.
A. If there are losses, the partnership will bear the losses
B. If there are profits, the profits will be shares by A and the partnership
C. If there are profits, A will give the profits to the partnership
D. A will be excluded from the partnership and pay damages.
21. A is the managing partner of ABC Partnership. X owes A personally and ABC Partnership P20,000
each. A collected and receive from X, P10,000 and he issued a receipt wherein it is stated that the amount
is applied against his personal credit.
A. The amount received will be applied in favor the partnership credit
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B. The amount will be applied in proportion to both credits
C. The amount received will be applied in the credit of A
D. All the partners will decide as to whose favor it will apply
22. Three (3) of the following are similarities between a partnership and a corporation. Which is not?
A. The individuals composing both have little voice in the conduct of the business
B. Both have juridical personality separate and distinct from that of the individuals composing them.
C. Like a partnership, a corporation can act only through agents
D. Both are organizations composed of an aggregate of individuals
23. A, B and C are general partners in ABC Partnership. A, the managing partner engaged personally in a
business that is the same as the business of the partnership without the consent of B and C.
A. If there are profits, A will give the profits to the partnership
B. If there are losses, the partnership will bear the losses
C. If there are profits, they will be shared by partner A and the ABC Partnership
D. The profits or losses will be shared equally by A and the ABC Partnership
24. Three (3) of the following are rights of a general partner and also of a limited partner in a limited
partnership. Which is not?
A. To inspect and copy at reasonable hours the books of the partnership and have them kept at the
principal place of business
B. To demand true and full information of all matters affecting the partnership and a formal account of
partnership affairs
C. To have dissolution and winding up by decree of court
D. None of the above
25. The partnership is insolvent. These are preferred as regards to the partnership property.
A. Partnership creditors C. Partners with respect to their capital
B. Partners separate creditors D. Partners with respect to their profits
27. Bears the loss of property contributed to the partnership

A. Capitalist partner C. None of the above
B. Limited partner D. Partners contributing usufructory rights
28. When cash or property worth P3,000 or more is contributed as capital. The Articles of Co-Partnership
shall be in a public instrument and be registered with the Securities and Exchange Commission. If the said
requirements are not complied with:
A. It will render the partnership void.
B. It will not affect the liability of the partnership and the partners to third parties.
C. It will not give a legal personality to the partnership.
D. It will give the partnership a de-facto existence.
29. A, B and C are equal partners in Santos Brothers Partnership. The partnership is indebted to PC for
P150,000. Partner A is indebted to SC for P20,000 PC attached and took all the assets of the partnership
amounting to P90,000. B and C are solvent while A is insolvent and all what he owns is a land valued at
P15,000.
A. SC has the priority to the land of A as a separate creditor.
B. PC has priority to the land of A to cover A’s share of the P60,000 remaining liability of the partnership
C. B and C have priority to the land of A if they paid PC the 60,000 remaining liability of the partnership.
D. PC and AC shall have priority to the land o A in proportion to their claim of P60,000 and P20,000
respectively
30. A partnership is not dissolved upon the death of a:

A. General partner C. Limited partner
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B. Industrial partner D. General limited partner
31. A and B are equal partners in AB Partnership C contacted XYZ and Co. and represented himself as
partner in AB Partnership. XYZ and Co. contacted A who confirmed that C is in fact a partner of AB
Partnership XYZ and Co. extended credit to C for AB Partnership in the amount of P60,000. Who is liable
to XYZ and Co.?
A. A and C are partners by estoppels and are liable to XYZ and Co.
B. XYZ and Co. extended the credit to C for AB Partnership, so a partnership liability exists, so both
partners, A and B together with C are liable.
C. The AB Partnership benefited, so it is liable
D. Only C who made the representation is liable
32. A, B and C are partners in a trucking and freight business. B and C without the knowledge of A
approached X and offered to sell to X all the trucks of the partnership at a price very much higher than
their book value. Then B and C bought-out A from the partnership and thereafter X bought all the trucks
with a big profit of B and C.
A. The sale of the trucks to X is void because it is without the knowledge and consent of A.
B. B and C are not liable to A whatsoever
C. B and C are liable to A for his share in the profits in the sale.
D. When A was bought-out of the partnership, the partnership was dissolved so A has no more share in
the profits in the sale.
33. When the capital (of a partnership) is P3,000 or more, it must be in a public instrument and must be
recorded with the Securities and Exchange Commission (Article 1772). A, B and C agreed to form a
partnership and each contributed P10,000 as capital of the partnership. There was no compliance in the
provisions of Article 1772.
A. The partnership was not established
B. The partnership did not have juridical personality
C. The partnership was established and any partner may compel the execution of a public
instrument
D. The partnership is void.
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 C. A, P9,000; B, P9,000; C, None
B. A, P6,000; B, P6,000; C, P6,000 D. A, P8,000; B, P4,000; C, P6,000
35. This is the order of preference in the liquidation of a partnership:

A. 1.Outside creditors
2.Partners with respect to their capital
3.Partners with respect to their profit
4.Partners aside from capital and profit
B. 1. Partners with respect to their capital
3.Partners aside from capital and profit
4. Outside creditors
C. 1. Outside creditors
2. Partners aside from capital and profit
3. Partners with respect to their capital
D. 1. Partners aside from capital and profit
2. Outside creditors
3.Partners with respect to their capital
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36. Three (3) of the following are rights of a partners. Which one is not?
A. Right to associate another person to his share
B. Right to admit another partner
C. Right to inspect and copy partnership book
D. Right to ask dissolution of the firm at the proper time
37 The following are similarities between partnership and a corporation. Which is the exception?
A. Both have juridical personalities separate and distinct from that of the individuals composing them.
B. Like a partnership, a corporation can act only through agents
C. Both are organization of an aggregate of individuals
D. The individuals composing both have little voice in the conduct of the business.
38. In the partnership of A, B and C, A was appointed in the Articles of Co-Partnership as managing
partner. As such manager in good faith:
A. His power is revocable even without consent
B. His power can be revocable at any time even without just cause provided
C. He may execute all acts of administration despite the opposition of B and C
D. He can be removed for valid cause even without the vote of the partners owning the controlling
interest
39. In the ABC Partnership, A and B contributed P20,000 each and C , his services. After paying all the
creditors of the partnership, only P18,000 in cash remains. In the absence of terms to the contrary, the
share of C is equal to:
A. P6,000 C. The share of B
B. The share of A D. Nothing
40 . X and Y established a partnership by contributing, each at P50,000. Z, a third party allowed his name
to be included in the firm name of the partnership. The partnership was insolvent and after exhausting all
the remaining asset, there was left a liability to third persons the amount of P30,000. The creditors can
compel:
A. Z to pay P30,000 remaining liability C. X or Y to pay P30,000 remaining liability
B. X, Y and Z to pay P10,000 each D. X and Y to pay P15,000 each
41. W, X, Y and Z formed a partnership. W, X and Y are general partners and contributed P50,000 each
while Z, an industrial partner contributed his services only. All the partners signed an agreement
stipulating that the liability of W is limited to its contribution After all the assets of the partnership were
exhausted there remains an unpaid liability of P40,000.
The creditors of the partnership can compel:
A. X and Y to pay the P40,000
B. X, Y and Z to pay the P40,000
C. W, X, Y and Z to pay P10,000 each and W and Z can demand reimbursement from X and Y.
D. X and Y to pay P40,000
42. A partner in a partnership who is not really a partner, not being a party to the partnership agreement,
but is made liable as a partner for the protection of innocent third persons is known as
A. Secret partner C. Nominal partner or partner by estoppel
B. Dormant partner D. Answer not given
43. A and B are capitalist partners, with C as industrial partner. A and B contributed P15,000 each to the
capital of the partnership. A contractual liability of P40,000 was incurred by the partnership in favor of X.
The capital assets of P30,000 shall first be exhausted thereby leaving an unsatisfied liability of P10,000. X
can recover the amount from:
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A. A and B only
B. A, B and C
C. A, B and C and C can recover for reimbursement from A and B
D. Answer not given
44. A, B and C are partners engaged in a retail business. Their contribution is P20,000 each. D is admitted
as a new partner with a contribution of P8,000. At the time of his admission, the partnership has an
outstanding obligation to E in the amount of P80,000. In this case:
A. D is not liable to E for this obligation
B. D is liable to E for this obligation so that amounting to P68,000 will be exhausted leaving a
balance of P12,000. Only A, B and C shall be liable jointly or pro-rata, out of their separate
property.
C. D is liable to E for this obligation so that after the assets of the partnership will be exhausted, leaving a
balance of P12,000, all the partners shall be liable jointly or pro-rata, out of their separate property.
D. Answer not given.
45. A, B and C are general partners in ABC Partnership. D is a debtor to the partnership in the amount of
P15,000. A received from Debtor D the sum of P5,000 and issued a receipt identifying the amount as his
share. Then D became insolvent, B and C cannot collect the P10,000.
A. A cannot be compelled to share the P5,000 with B and C
B. B and C can charge the capital of A with their share of the P5,000
C. A can be compelled to share B and C the P5,000
D. B and C automatically sue D to collect the P10,000
46. M and O are partners of M & O Partnership. M is the managing partner. N owes M P10,000 and M & O
partnership P30,000. The obligations of N are both due. M collected from N the debt of N to M in the
amount of P10,000 and issued a receipt in the name of M. To which obligation will the P10,000 be
applied?
A. The whole of the P10,000 be applied to debt of N to M
B. The P10,000 be applied to debt of N to M and to the partnership
C. P5,000 each of debt of N to M and to the partnership
D. P2,500 to debt of N to M and P7,500 debt of N to the partnership
47. A, B and C are partners in D-3 Partnership. On April 29,2010, partner C died. Not knowing that C died,
on May 1, 2010, A contracted a liability to D who also do not know the death of C. The partnership debt is
in the amount of P30,000, he can collect
A. P30,000 from A
B. P15,000 from A and P15,000 from B
C. P10,000 from estate of C; P10,000 from A ; P10,000 from B
D. P20,000 from A and P10,000 from B
48. This the order of preference in the liquidation of a general partnership:

A. Outside creditors; Partner as creditors; Partners capital; Partners profit
B. Partner as creditors; Outside creditors; Partners capital; Partners profit
C. Partners capital; Outside creditors; Partner as creditors; Partners profit
D. Outside creditors; Partner capital; Partners profit; Partners as creditors
49. R, S and T are partners. T is the industrial partner who in addition to his services, he also contributed
capital to the partnership. There is no stipulation as to sharing of profits and losses. The partnership
realized profits of P21,000. The share of T in the profits:
A. R and will determine T’s share I, in the profits C. Pro-rata to his contributed capital
B. T’s share is P7,000 D. Nothing, because he is an industrial partner
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50. W, X, Y and Z are partners. They contributed capital as follows: W, P50,000; X, P30,000; Y, P20,000 and
Z, is an industrial partner, his services. The partnership’s obligation to outsiders exceed the total net
assets by P18,000. Who and by how much will the partners be liable for the payment of the P18,000?
W X Y Z
A. P9,000 P5,400 P3,600 0
B. P4,500 P4,500 P4,500 P4,500
C. P6,000 P6,000 P6,000 P6,000
D. P4,500 P2,700 P1,800 P9,000
51. Which of the following is a characteristic of partnership as a contract?

A. Formal C. Gratuitous
B. Innominate D. Preparatory
52. One who takes active part in the business, but is not known to be a partner by outside parties is:
A. Silent partner C. Nominal partner
B. Dormant partner D. Secret partner
53. Can the partners stipulate that the newly admitted partner shall not be held liable for the obligations
of the partnership arising before his admission? Which of the following statement is not correct?
A. No, because the newly admitted partner should be deemed to have assumed all the debts of the
partnership upon his voluntary participation in the partnership.
B. No, because newly admitted partner is liable with respect to his capital contribution which forms part
of the partnership
C. No, because the third person are always protected by law.
D. No, because the subject of the stipulation is that the liability of the new partner should not be
satisfied out of the partnership property.
54. I. The arrival of the term of a partnership with a fixed term or period shall not dissolve the
partnership if the partners continue with the business of the partnership but such partnership may be
terminated anytime dependent on the will of the continuing partners.
II. The general rule is that the loss of the specific thing contributed to the partnership when only the use
of the thing is contributed by the partner and such thing after its transfer to the partnership which used
the same or sometime was subsequently lost, the partnership is not dissolved.
A. True; False C. False; False
B. True; True D. False; True
55. May contribute money, property or industry to the common fund:

A. General partner C. Limited partner
B. Industrial partner D. Managing partner
56. A limited partner who takes active part in the management of the firm becomes:
A. A managing partner C. A general partner
B. Liable as a general partner D. A general partner and a limited partner at the same time
57. Which of the following statements is not correct?

A. A general partner in a limited partnership manages the business of the partnership but cannot
perform acts of ownership without the consent of the limited partners
B. Valid contributions of a limited partner are money and property but not services.
C. Additional limited partners may be admitted into the limited partnership with the consent of all the
partners.
D. A person who is both a general partner and a limited partner is deemed a limited partner only with
respect to the return of his contribution.
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58. A is the managing partner of A and Company. X is indebted to A for P20,000 and to the partnership for
P60,000. When both debts mature, X pays A P20,000 and the latter issues a receipt for his personal credit.
The payment for P20,000 shall be applied:
A. ¼ in favor of A and ¾ in favor of the partnership
B. To the whole debt owing to A
C. ½ in favor of A and ½ in favor of the partnership
D. To the debt owing to the partnership
59. Which of the following is an essential element of partnership?

A. There must be a contribution of money, property, or industry to a common fund.
B. It must an association for profit with the intention to divide the profits among themselves.
C. There must be a valid and voluntary agreement.
D. All of the above.
60. A and B are partners. On June 15, 2009 when the total obligation of the partnership totaled P80,000. C
was admitted as new partner. At the time C’s admission, the partnership creditors were M for P50,000
and N for P30,000. After June 15, the partnership borrowed from O P20,000 and P40,000 from P. On
December 15, 2009, the partnership became insolvent leaving an obligation totaling P140,000 and
partnership assets amounting to P30,000. The creditors are going after the separate properties of the
partners to satisfy their remaining claims. How are the creditors’ claims satisfied?
Answer 1 - M and N can go after the separate properties of A and B but C’s separates properties
are not answerable to their claims.
Answer 2 – O and P can go after the separate properties of A, B and C.
A. Both answers are wrong
B. Answer 2 is wrong but answer 1 is correct
C. Both answers are correct
D. Answer 2 is correct but answer 1 is wrong
61. A and B are capitalist partners with C as industrial partner. A and B contributed P20,000 each to the
capital of the partnership. A contractual liability of P50,000 was incurred by the partnership in favor of X.
The assets of the partnership had been exhausted still leaving an unpaid liability of P10,000. X can
recover the amount from:
A. A, B and C and C can recover by way of reimbursement from A and B unless stipulated
otherwise.
B. A and B only
C. C only
D. A, B and C and C has no right for reimbursement from A and B unless expressly stipulated.
62. Which of the following liabilities of the partnership shall rank first in the order of payment?
A. Those owing to creditors other than partners
B. Those owing to partners in respect to profits
C. Those owing to partners in respect to capital
D. Those owing to partners other than for capital and profits
63. I. The contribution of a limited partner may be cash, property or service.

II. A limited partner who takes part in the management of the business of the partnership is not a
general partner but he shall be liable as a general partner.
A. True; True C. False; False
B. True; False D. False; True
64. I. A person may be a general and a limited partner in the same partnership at the same time.
II. A person admitted as a partner into an existing partnership is not liable for partnership
obligations existing before his admission.
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65. I. A partner cannot assign his interest in the partnership to a third person without the consent of
the other partners.
II. A partner’s interest in the partnership is his personal property.
66. I. The creditor of each partner shall be preferred to those of the partnership as regards the
partner’s separate property.
II. An industrial partner is exempted from losses but not from partnership liabilities
67. I. An industrial partner with the consent of the other partners can engage in any business for his
own account.
II. An industrial partner is not a general partner.
68. I. A general partner not a managing partner can engage in a business different from the business
of the partnership for his own account without the consent of the other partners.
II. A general partnership can be formed orally.
69. I. All the partners in a general partnership are considered managing partners if there is no
stipulation as to who shall act as managing partner.
II. A partner is liable to the partnership for whatever property he agrees to contribute without
necessity of demand.
70. I. If the capital contribution of the partners amount to P3,000 or more the contract of partnership
must be in public a public document, otherwise the contract is void.
II. A contract of partnership is void, whenever immovable property is contributed thereto if an
inventory of said property is not made, signed by the parties and attached to the public document.
71. I. Dissolution does not terminate the partnership.

II. Insanity of a general partner in a limited partnership dissolves the partnership.
72. I. A general partner in a limited partnership has all the rights, powers and liabilities as though the
partnership is not limited.
II. A general partner is personally liable for partnership obligations while a limited partner is not
liable for partnership liabilities.
73. I. A limited partner is simply a contributor to the partnership.
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II. A limited partner has a right to the return of his contribution upon the dissolution of the
partnership.
CORPORATION
1. The nationality of a corporation is determined by the law of its domicile or place of principal business.
The test is known as:
A. The control theory C. The incorporation theory
B. The full absorption theory D. The management theory
2. This is unincorporated business organization created by an instrument by which property is to be held

and managed by trustees for the benefit and profit of such person as may be or become the holders of
transferable certificates evidencing the beneficial interests in the estate
A. Business Trust C. Condominium Corporation
B. Close Corporation D. Joint Stock Company
3. When preferred shares are issued by a corporation with a fixed annual interest on the face thereof, the
effect is:
A. The contract of subscription is between the corporation and the stockholder subsists
B. The stockholder is a plain investor who may rise or fall with the financial success or failure of
the corporation.
C. The stockholder is a creditor of the corporation
D. The shares of stock are negotiable instruments under the Negotiable Instruments Law
4. This class of shares are those issued for no consideration or inadequate consideration:
A. Bonus shares C. Over issued shares
B. Deferred shares or founders shares D. Watered shares
5. The power to deny pre-emptive right as a corporate power is classified as an:

A. Express power C. Implied power
B. Incidental power C. Implied power
6. The power to invest corporate funds in another corporation or business or for any other purpose as a
corporate power is classified as an:
B. Incidental power D. Discretionary power
7. The power of conducting commercial contracts (to increase the business) and sponsoring athletic
contest for employees to keep them in good health or maintaining a hospital for the employees is an
example of:
8. To establish pension, retirement, and other plans for the benefits of its directors, trustees, officers and
employees is an example of:
9. A religious order is considered as a:

A. Corporation by prescription C. Corporation sole
B. Public corporation D. None of them.
10. Place of residence of a corporation shall be its:
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A. Place of incorporation C. Place where the principal office is established
B. Place of residence of majority of stockholders D. None of them
11. This shall constitute a quorum for transaction of corporate business:

A. Majority of the members C. Majority of the directors
B. Majority of the stockholders D. All of them
12. Juridical personality of a corporation begins:

A. From the date of issuance of certificate of incorporation
B. By agreement of the parties
C. Acknowledgement before a Notary Public
D. None of them
13. Right which the existing stockholders of corporation cannot be deprived without the consent is their
right to subscribe or to purchase new stock issued by the corporation; or unissued original stock, in
proportion to their holdings before it can be offered to others:
A. Right of redemption C. Right to purchase
B. Pre-emptive right D. None of them
14. 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 Securities and
Exchange Commission and the filing fee is paid
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
15. The following are the qualifications of incorporators . Choose the exemption:
A. Majority of whom must be Filipinos
B. Majority of whom are residents of the Philippines
C. All are of legal age
D. Natural persons, not less than five but not more than 15.
16. These are the shares of stock which have been issued and fully paid for, but subsequently reacquired
by the issuing corporation:
A. Redeemable shares C. Founder’s share
B. Treasury shares D. None of the three
17. In the amendment of the Articles of Incorporation of a stock corporation, the following is necessary:
A. Amendment by the majority vote of the Board of Directors plus a vote or written assent of the
stockholders representing at lest 2/3 of the outstanding capital stock.
B. Amendment by a vote of 2/3 of the stockholders
C. Amendment by the majority vote of the Board of Directors
D. None of the three
18. Corporation governed by special laws, aside from the requirements specified under the corporation
laws, in order that their articles of incorporation may be approved or accepted, must present before the
Security and Exchange Commission:
A. A favorable recommendation from the Ministry of Finance
B. A copy of previous income tax return and a statement of assets, liabilities and net worth
C. A favorable recommendation of the appropriate government agency to the effect that such
articles or amendment is in accordance with law.
D. An undertaking to change the name of the corporation if found that there is already registered with the
SEC a name or a name similar to the name of this corporation
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19. The following are some of the requisites of a de facto corporation. Choose the exception:
A. Valid law under which it is incorporated
B. Attempt to incorporate
C. Assumption of corporation power
20. The following are the qualifications of director in a corporation. Choose the exemption:
A. Majority of the directors must be Filipino citizens
B. He must own at least one share of the stock in his name
C. Majority of the corporate directors must be residents of the Philippines
D. He must not have convicted by final judgment of an offense carrying an imprisonment exceeding 6
years or an offense constituting a violation of the Corporation Code
21. The secretary of a stock corporation shall be:

A. A director of the corporation C. A resident and citizen of the Philippines
B. An incorporator of the corporation D. Of legal age and citizen of the Philippines
22. Directors or trustees who willfully and knowingly vote or assent to patently unlawful act of the
corporation or who are guilty of gross negligence or had faith in directing the affairs of the corporation or
acquire any personal or pecuniary interest in conflict with their duty shall be liable:
A. As trustee for the corporation
B. Criminally for violation of the corporation code
C. Jointly and severally for the damages suffered by the corporation
23. The following are methods of dissolving a corporation:

A. Expiration of the term
B. Failure to organize and commence business within two (2) years from date of issuance of certificate of
incorporation
C. Shortening of the corporate term
D. All of the above
24. Three of the following enumeration are not authorized to issue no par value shares of stock. Which is
the exception?
A. Insurance companies C. Public utilities
B. Industrial companies D. Trust companies
25. Any stockholder of a corporation shall have the right to dissent and demand payment of the fair value
of his share/s in three of the following corporate acts. Which is the exception?
A. In case of any amendment to the articles of incorporation which has the effect of changing or restricting
the rights of any stockholder or class of shares.
B. In case of merger or consolidation
C. In case of sale, lease, exchange, transfer, mortgage, pledge or other disposition of all or substantially all
of the corporate assets and property of the corporation.
D. In case of incurring, creating or increasing bonded indebtedness
26. 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 C. P5,000 or 50 shares
B. P6,250 or 62.5 shares D. P7,500 or 75 shares
27. In the matter of management of the business affairs of a corporation, this is supreme:
A. Majority of the stockholders C. Board of Directors
B. 2/3 of the stockholders D. President of the corporation
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28. This is the equitable right of stockholders to subscribe to newly issued shares of the corporation in
proportion to their present shares in order to maintain their equity in the corporation.
A. Right of redemption C. Right to sue and be sued
B. Concept of corporation entity D. Pre-emptive right
29. This is a written acknowledgement of an interest of a stockholder in the corporation.

A. Proxy C. Certificate of Stock
B. Share of stock D. Capital Stock
30. These are the persons who sign the Articles of Incorporation, who may or may not be subscribers of
shares
A. Incorporators C. Directors
B. Trustees D. Promoters
31. Choose the minimum requirement of the Corporation Law to corporate formation:
Authorized Capital Subscribed Capital Paid-In Capital
A. P100,000 P20,000 P5,000
B. 100,000 20,000 4,000
C. 100,000 25,000 5,000
D. 100,000 25,000 6,250
32. They provide and regulate the internal matters of the corporation, such as calling the Board of
Directors and Stockholders meetings.
A. Board of Directors C. By-laws
B. Majority of Stockholders D. Articles of Incorporation
33. This is an authority to vote in a corporation stockholders meeting.

A. Proxy C. Certificate of stock
B. By-laws D. Share of stock
34. A gratuitous reissue of Treasury shares will result in:

A. Capital surplus C. Watered stock
B. Additional profit D. Stock dividend
35. Three (3) of the following are similarities between a partnership and a corporation. Which is not?
A. The individuals composing both have title voice in the conduct of the business
B. Both have juridical personality separate and distinct from that of the individuals composing them
C. Like a partnership, a corporation can act only through agents
D. Both are organizations composed of an aggregate if individuals
36. One of the following is the limitation on proxies. Which is?

A. Proxy acquires legal title to the shares of the stock
B. A proxy votes even in the presence of the stockholder
C. The proxy is voted only for the meeting for which it was intended
D. A proxy is revocable at any time
37. The number of the Board of Trustees in a non-stock corporation:

A. Shall not be less than five but not more than eleven
B. May be more than fifteen upon its organization
C. May be less than five upon its organization
D. Shall not be less than five but not more than fifteen
38. One of the following is a ground for the suspension or revocation of the certificate of incorporation by
the Securities and Exchange Commission.
33
A. If the corporation has commenced its business transactions and afterwards ceased operation
continuously for a period of at least five (5) years
B. If the corporation fails to commence and start to operate and the failure is due to causes beyond the
control of the Corporation
C. If the corporation does not formally commence its business transaction and subsequently become
continuously inoperative for a period of two (2) years
39. Right of the corporation to continue as a juridical entity for the term stated in the articles of
incorporation despite the death of any stockholder.
A. Juridical personality C. Right of succession
B. Pre-emptive right D. Right of existence
40. Original signatories in the articles of incorporation are called:

A. Corporators C. Stockholders
B. Promoters D. Incorporators
41. They regulate different internal matters of the corporation such as calling and defining the conduct of
the meeting of stockholders and directors.
A. Board of directors C. Articles of incorporation
B. By-laws D. Proxy
42. The document conferring authority to vote stock in a corporate meeting:

A. Power of attorney C. Capital stock
B. Shares of stock D. Proxy
43. The minimum requirement of Corporation Law to corporate formation.

Authorized Subscribed Capital Paid in Capital
A. P500,000 P100,000 P25,000
B. 500,000 125,000 31,250
C. 500,000 100,000 20,000
D. 500,000 125,000 25,000
44. Three (3) of the following are attributes of a corporation. Which is the exception?
A. An artificial being
B. Has the right of succession
C. Has powers, attributes and properties expressly authorized by law or incident to its existence
D. Created by agreement of the incorporators
45. Three of the following are qualifications of the Board of Directors. Which is the exception?
A. He must own at least one (1) share of the capital stock
B. At least majority of them are citizens of the Philippines
C. The shares owned must be recorded in the books of the corporation.
D. He must continuously own at least one )1) share of the stock of the corporation
46. The voting requirement to increase or decrease capital stock

A. Majority vote of the board of directors and consented by the stockholders representing two-
thirds (2/3) of the outstanding capital stock
B. Two-thirds (2/3) vote of the board of directors with the consent of majority of outstanding capital
stock
C. Majority vote of the board of directors and with consent if majority of the outstanding capital stock
D. Majority vote of the board of directors and three-fourths (3/4) vote of the outstanding capital stock
47. A dividend payable partly in cash and partly in stocks, as to class of dividend, is a :
A. Optional dividend C. Liquidation dividend
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B. Property dividend D. Composite dividend
48. Bonds which are not secured by any specific mortgage lien of pledge or corporate property but by the
general corporation are:
A. Guaranteed bonds C. Income bonds
B. Debenture bonds D. Redeemable bonds
49. These are the rules and guidelines adopted by the stockholders of a corporation for the internal
government.
A. Rules and regulations C. Minutes of the meetings
B. Articles of Incorporation D. By-law
50. Which of these conditions comply with the minimum requirement of the law to corporate formation?
Authorized Capital Subscribed Capital Paid In Capital
A. P100,000 P25,000 P12,500
B. 64,000 16,000 4,000
C. 200,000 50,000 10,000
D. 200,000 40,000 10,000
51. A distribution by a corporation of shares held by it in another corporation is:

A. Stock dividend
B. Sales of capital asset
C. Property dividend of actual distribution of corporate assets
D. Sale of treasury stock
52. Corporations organized by private persons performing public function and for profit to private parties
are:
A. Public corporations C. Quasi-public corporation
B. Government controlled corporation D. Private corporation
53. This is a document of a corporation acknowledging the interest of a stockholder in the

corporation’s assets.
A. Certificate of stock C. Share of stock
B. Capital stock D. Stockholder’s equity
54. In a corporation, any two (2) or more positions may be hels concurrently by the same person, except
that no one (1) person shall act as:
A. Chairman of the Board and President C. President and Secretary
B. Secretary and Treasurer D. Treasurer and Director
55. A corporation may invest its funds in any other corporation of business or any purpose other than the
primary purpose for which it was organized, only if:
A. There is majority vote of the Board of Directors and ratified by the stockholders representing
2/3 of the outstanding capital stock
B. It is reasonably necessary to accomplish its secondary purpose, the approval of the stockholders not
necessary
C. There is a majority vote of the Board of Directors
D. There is majority vote of the outstanding capital stock
56. The following are advantages of no-par value share of stock. Which is the exception?
A. No-par value share allow flexibility in price
B. The stockholders of no-par value shares are relieved of personal liability for unpaid stock subscription
C. It allows the issue of stock in exchange of property
D. No-par value shares afford a possible remedy or relief from the evil of overcapitalization
35
and stock watering
57. The right to vote at meetings, the right to receive dividends and the right to receive copies of financial
statements is known as:
A. Right of existence C. Pre-emptive right
B. Directors right D. Stockholder’s right
58. The Garcia Realty Development Corporation has a capital stock of P1,000,000 divided into 10,000
shares with a par value of p100 each. 5,000 shares are ordinary share and 5,000 shares are 10%
preference share. In 2008 there was no declared dividends but in 2009 dividends in the amount of
P200,000 were declared. The holders of the preference share are entitled to receive:
A. P50,000 if cumulative, non-participating C. P125,000 if cumulative, participating
B. P125,000 in non-cumulative, participating D. P100,000 if non-cumulative, non-participating
59. Persons who compose the corporation whether as stockholder in a stock corporation or member in a
non-stock corporation, are called:
A. Incorporators C. Promoters
B. Subscribers D. Corporators
60. In three of the following, these persons qualify to be incorporators. Which is the exception?
A. Must have paid at least 25% of their subscription
B. Natural persons not less than five, not more than 15
C. Majority are residents of the Philippines
D. Need not be citizens of the Philippines
61. Dividends are declared and paid out of the

A. Paid-up capital C. Net income of the current year
B. Capital stock D. Unrestricted retained earnings
62. The following defect will preclude the creation of even a de facto corporation:
A. The name of the corporation closely resembles that of a pre-existing corporation that it will tend to
deceive the public
B. The incorporators or a certain number of them are not residents of the Philippines
C. Lack of certificate of incorporation from the Securities and Exchange Commission
D. Answer not given
63. The distinction between a proxy and a voting trust is that in a voting trust:
A. The trust has a legal title to the shares of the transferring stockholder
B. Unless coupled with interest, is revocable at any time
C. Is not limited to any particular meeting
D. Answer not given
64. The distinction between subscription of shares from purchase of shares is that in subscription of
shares:
A. It is an independent agreement between the individual and the corporation to buy shares of stock from
it at a stipulated price
B. It takes place before or after incorporation and is generally paid in installment or upon call.
C. In case of insolvency of the corporation, the subscription price cannot be enforced on the theory that
the corporation can no longer perform its obligation to deliver the certificate of stock
D. Answer not given
65. A corporation created in strict or substantial conformity with the statutory requirements for
incorporation and whose right to exist as a corporation cannot be successfully attacked even in a direct
proceeding for that purpose by the State is known as:
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A. De jure corporation C. De facto corporation
B. Corporation by estoppels D. Answer not given
66. One of the characteristics of treasury shares is that:

A. They have the status of outstanding shares
B. They may not be reissued or sold again
C. They participate neither in dividends nor in the meetings of the corporation as voting stocks
D. Answer not given
67. Which of the following will not qualify as incorporator of a corporation?

A. A minor who is emancipated by voluntary concession or marriage
B. A married woman without the consent of her husband where the property involved in the act
of incorporation is paraphernal
C. A corporation
D. Answer not given
68. The articles of incorporation is required to state the names, nationalities and residences of persons
who act as directors or trustees are duly elected and qualified. This requirement is intended to provide a
basis by which the Securities and Exchange Commission could determine whether the Articles of
Incorporation has complied with the requirement that:
A. At least a majority of the directors or trustees are residents of the Philippines
B. All the directors or trustees are residents of the Philippines
C. 2/3 of the directors or trustees are residents of the Philippines
D. Answer not given
69. The power to revoke corporate franchise for causes specified by law is vested only in the:
A. President of the Republic of the Philippines C. Court of component jurisdiction
B. Securities and Exchange Commission D. Answer not given
70. Corporate dissolution may take place by voluntary inaction which will in the cessation of its corporate
powers and the corporation shall be deemed dissolved. Such dissolution may result from:
A. Inaction by the corporation through its failure to formally organize and commence with the
transaction of its businesses or the construction of its works within two years from the date of its
incorporation
B. Failure of the corporation to submit the annual reports required by the Securities and Exchange
Commission for a period of five years
C. Merger or consolidation with respect to absorbed corporation
D. Answer not given
71. Watered stocks are shares of stock issued by a corporation for a consideration in any form other than
cash valued in excess of its fair value. In this regard:
A. The issue by itself is void
B. The agreement that it shall be paid less than its par or issued value is illegal and void and
cannot be enforced
C. The subscriber and purchaser shall not be liable for the full par value of the shares
D. Answer not given
72. 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
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73. An officer of a corporation may hold two or more positions in the corporation but not as:
A. Chairman of the Board and President C. Secretary and Treasurer
B. President and Treasurer D. Vice President and Secretary
74. The right of a corporation to exist as juridical person during its term as stated in its Articles of
Incorporation despite the death of any of its stockholders is:
A. Right of existence C. Right of succession
B. Right of redemption D. Pre-emptive right
75. The interest or right of the owner in the corporation’s profits or in the net assets of the corporation on
dissolution is:
A. Dividend C. Certificate of stock
B. Share of stock D. Capital
76. Requirement to effect the amendment of by-laws of a corporation.

A. Majority vote of the board of Directors
B. Vote of 2/3 of the outstanding capital stock
C. Majority vote of the Board of Directors and majority vote of the outstanding capital stock
D. Majority vote of the outstanding capital stock
77. The nationality of the corporation is determined by the place of the controlling stockholders. This test
is:
A. Control test C. Incorporation test
B. Domicile test D. Capitalalization test
78. The following person cannot be incorporator of a corporation.

A. A resident alien
B. A married woman without the consent of the husband even if the payment of her shares is her
paraphernal property
C. A subscriber on the share of the corporation who pays less than 25% of his subscription
D. A corporation organized under the laws of the Philippines
79. One of the following is not required and does not form part of the three-fold duty of directors of a
corporation. Which one?
A. Duty of diligence C. Duty of obedience
B. Duty of loyalty D. Duty of efficiency
80. These do not form part of the outstanding capital stock:

A. Bonus shares C. Founder’s shares
B. Treasury shares D. Redeemable shares
81. One of the following does not require stockholder’s approval:

A. Merger or consolidation
B. Change of corporate name
C. Investment of corporate funds for a purpose outside of the main purpose of the corporation.
D. Declaration of cash dividend
82. Under this test, a corporation is a national of the country pursuant to whose laws it is incorporated:
A. Nationality test C. Control test
B. Capitalization test D. Incorporation test
83. Which of the following statements is not correct?
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A. In the delinquency sale at public auction, the highest bidder is one who offers to pay the full
amount of the balance of the subscription plus interest and expenses of the sale for the highest
number of shares.
B. The sale of delinquent stock at public auction can be stopped if the Board of Directors stops the sale for
valid reason.
C. Payment of unpaid subscription may not be enforced by applying cash dividends to delinquent
stockholders.
D. The Board of Directors shall order, by resolution, the sale of delinquent stock specifying the amount
due plus accrued interest, the place, time and date of the sale
84. A stockholder who does not approve the action taken by the Board of Directors in proposing to
amend the Articles of Incorporation is allowed to withdraw from the corporation in one of the
following instances:
A. Merger or consolidation
B. Investment of corporate funds in another corporation
C. Creating, incurring, increasing or decreasing any bonded indebtedness
D. Shortening or prolonging corporate existence
85. I. Membership in a non-stock corporation and all rights arising therefrom cannot be transferred even
if provided in the articles of incorporation or by laws because membership and the rights arising
therefrom are personal and non-transferable.
II. Treasury stocks sold for less than par or issued value are considered “watered stock” and as such are
prohibited by law. Which is correct?
A. True; False C. False; True
B. Both statements are false D. Both statements are true.
PARTNERSHIP
1. One of the following is not a characteristic of a contract of partnership
A. Real, in that the partners must deliver their contributions in order for the partnership contract
to be perfected.
B. Principal, because it can stand by itself.
C. Preparatory, because it is a means by which other contracts will be entered into.
D. Onerous, because the parties contribute money, property or industry to the common fund.
2. One of the following is not a requisite of partnership. Which is it?

A. There must be a valid contract.
B. There must be a mutual contribution of money, property or industry to a common fund.
C. It is established for the common benefit of the partners which is to obtain profits and divide the same
among themselves.
D. The articles are kept secret among the members.
3. 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 public instrument and be registered
with SEC.
A. P 5,000 C. P 3,000
B. P10,000 D. P30,000
4. X and Y entered into a universal partnership of all present property. At the time of their agreement. X
had a four-door apartment which he inherited from his father 3 years earlier. Y, on the other hand, had a
fishpond which he acquired by dacion en pago from Z. During the first year of the partnership, rentals
collected on the four-door apartment amounted to P480,000; while fish harvested from the fishpond
were sold for P300,000. During the same period. B received by way of donation a vacant lot from an uncle.
The partners had an stipulation that future property shall belong to the partnership. Which of the
following does not belong to the common fund of the partnership?
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A. Fish pond C. Apartment
B. Rental of P480,000 D. Vacant lot
5. D and E entered into a universal partnership of profits. At the time of execution of the articles of
partnership, D had a two-door apartment which he inherited from his father 3 years earlier. E on the
other hand, had fleet of taxis which he purchased two years before. In the first year of the partnership, D
earned P500,000 as radio talent while E won P1,000,000 in the lotto. During the same period, rentals of
P120,000 were collected from the apartment, while fare revenues of P200,000 were realized from the
operation of the fleet of taxis. Which of the following belongs to the partnership?
A. Two-door apartment C. Salary of P500,000
B. Lotto winnings of P1,000,000 D. Fleet of taxis
6. A partnership formed for the exercised of a profession which is duly registered is an example of
A. Universal partnership of profits C. Particular partnership
B. Universal partnership of all present property D. Partnership by estoppel
7. A, B and C are partners in ABC Enterprises. Not having established yet their credit standing, the three
partners requested D, a well known businessman, to help them negotiate a loan from E, a money lender.
With the consent of A, B and C, D represented himself as a partner of ABC Enterprises. Thereafter, E
granted a loan of P150,000 to ABC enterprises. What kind of partner is D?
A. Managing partner C. Ostensible partner
B. Liquidating partner D. Partner by estoppel
8. Using the preceding number, assuming ABC Enterprises was unable to pay the loan on due date at
which time the assets of the partnership amounted to P120,000. From whom may E collect the payment?
A. D only for the whole amount of P120,000.
B. A, B and C who are liable jointly for P50,000 each.
C. ABC Enterprises for its assets of P120,000; hereafter, A, B and C from their separate assets at P10,000
each.
D. ABC Enterprises for its assets of P120,000 thereafter, A, B, C and D from their separate assets at
P7,500 each.
9. Which of the following losses will not cause the dissolution of a partnership?
A. Loss before delivery of a specific thing which a partner had promised to contribute to the partnership.
B. Loss of a specific thing after its delivery to and acquisition of its ownership by the partnership
from the partner who contributed the same.
C. Loss after delivery of a specific thing where the partner contributed only its use and enjoyment where
such partner reserved the ownership thereof.
D. Loss before delivery of a specific thing where the partner promised to contribute only its use and
enjoyment, reserving the ownership thereof.
10. A partner can engage in business for himself without the consent of his co-partners if he is
A. A capitalist partner whether or not the business he will engage in is of the same kind as or different
from the partnership business.
B. An industrial partner whether or not the business he will engage in is of the same kind as or different
from the partnership business.
C. A capitalist partner and the business he will engage in is of a kind different from the partnership
business.
D. An industrial partner and the business he will engage in is of a kind different from the partnership
business.
11. The partnership will bear the risk of loss of three of the following things, except
A. Things contributed to be sold.
B. Fungible things or those that cannot be kept without deteriorating.
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C. Non-fungible things contributed so that only their use and fruits will be for the common benefit.
D. Things brought and appraised in the inventory.
12. A partner’s interest in the partnership is his share of the profits and surplus which he may assign to a
third person. Which of the following statements concerning such right is correct?
A. The conveyance of a partner’s interest will cause the dissolution of the partnership.
B. The assignee becomes a partner.
C. The assignee has the right to interfere in the management of the partnership business.
D. The assignee has the right to receive the profits which the assigning partner would otherwise
be entitled thereto.
13. Partnership as distinguished from corporation

A. Acquires juridical personality upon approval by the SEC and the issuance of certificate.
B. Has limited liability.
C. Created by operation of law.
D. No power of succession.
14. Essential elements or feature of a partnership, except

A. Must have a lawful object or purpose
B. There must be a contribution of money, property or industry to a common fund
C. With intention to divide and contribute whatever profits they make to other people.
D. Must be established for the common benefit or interest of the partners.
15. Partner who contributes money and/ or property, except

A. General C. Industrial
B. Capitalist D. Managing
16. Partner who contributes industry or labor

B. Capitalist D. Managing
17. Partner who contributes both capital and industry

A. General C. Managing
B. Limited D. Capitalist-industrial
18. Partner who is liable beyond the extent of his contribution

B. Limited D. Silent
19. Partner who is liable only to the extent of his contribution

A. Limited C. Industrial
B. General D. Managing
20. Partner who manages actively the firm’s affairs

A. Silent C. Managing
B. Liquidating D. Dormant
21. Partner who does not participate in the management though he shares in the profits or losses.
A. Liquidating C. Ostensible
B. Nominal D. Silent
22. Partner who winds up the affairs of the firm after it has been dissolved
A. Liquidating C. Industrial
B. Managing D. Capitalist
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23. Partner whose connection with the firm is known to the public
A. Ostensible C. Silent
B. Secret D. Nominal
24. Partner whose connection with the firm is concealed or kept secret
A. Ostensible C. Silent
B. Secret D. Nominal
25. Partner who is both a secret and silent partner

A. Nominal C. Limited
B. Ostensible D. Dormant
26. Partner who is not really a partner but who may become liable as such insofar as third
persons are concerned
A. Nominal C. Silent
B. Ostensible D. Secret
27. May contribute money, property or industry to the common fund

A. Limited partner C. Both limited and general partners
B. General partner D. Dormant partner
28. May be required to make additional contribution in case of imminent loss:

A. Capitalist partner C. Industrial partner
B. Limited partner D. Choices A, B and C
29. A, B and C are partners each contributing P10,000. The firm’s indebtedness amounts to P90,000. It
was stipulated that A would be exempted from liability. Assuming that the capital of P30,000 is still in the
firm, which of the following is not correct?
A. The creditors may get the P30,000 and still collect each P20,000 from A, B and C.
B. A can recover P10,000 each from B and C should he (A) be required to pay the creditors.
C. A cannot recover his original capital of P10,000.
D. The creditors can recover P45,000 each from B and C.
30. A newly admitted general partner is liable to creditors existing at the time of his admission and his
liability is
A. Up to his capital contribution only if there is stipulation.
B. Up to his separate property even there is no stipulation.
C. Up to his capital contribution even if there is stipulation.
D. Up to his separate property only if there is stipulation.
31. Using the preceding number, but the obligations were contracted after his admission, which of the
following is correct?
A. He is liable to the creditors before and after his admission up to his separate property.
B. He is liable to the creditors before and after his admission only up to his capital contribution.
C. He is liable to the creditors before and after his admission up to his capital contribution and to
the creditors after his admission up to his separate property..
D. He is not liable to creditors existing before his admission.
32. A and B are partners engaged in the real estate business. A learned that C was interested in buying a
certain parcel of land owned by the partnership, even for a higher price. Without informing B of C’s offer
A was able to convince B to sell to him (A) his (B’s) share in the partnership. Then A sold the land at a big
profit. Which of the following is correct?
A. A is liable to B for the latter’s share in the profit.
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B. C is liable to B for the latter’s share in the profit.
C. A new partnership is formed between A and C.
D. The sale of the land to C is void since it was without the knowledge of B.
33. A and B are partners in a real estate business. A and B were approached by X who offered to buy a
parcel of land owned by the partnership. Thereafter B sold to A, B’s share in the partnership.
Then A sold the land to X at a big profit. Which is correct?
A. The sale of the land to X is void C. B may rescind the contract between A and X
B. A is liable to B for B’s share in the profits. D. A is not liable to B for any share in the profits.
34. The following persons are disqualified to form a universal partnership, except
A. Husband and wife
B. Brother and sister
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense; if the partnership is entered into in consideration of the
same.
35. A, B and C are capitalist partners while D is an industrial partner. A, the managing partner engaged
personally in a business that is the same as the business of the partnership without the consent of the
other partners. As a result,
A. If there are losses, the partnership will bear the losses
B. If there are profits, the profits will be shared by A and the partnership.
C. If there are profits, A will give the profits to the partnership.
D. A will be excluded from the partnership and will pay damages.
36. A, a managing partner is B’s creditor to the amount of P1,000 already demandable. B also owes the
partnership P1,000, also demandable. A collects P1,000 from B. One is not correct.
A. If A gives a receipt for the partnership it is the partnership’s credit that has been collected.
B. If A gives a receipt for his own credit, it is A’s credit that has been collected.
C. If A gives a receipt for his own credit, P500 will be given to him, P500 to the partnership.
D. B may decide that he is paying only A’s credit if the personal credit of A is more onerous to B.
37. The remedy of capitalist partners against an industrial partner who engaged in a business for himself
without the expressed permission from the partnership is:
A. To compel him to sell his interest to the said capitalist partners.
B. To exclude him from sharing in the profits of the partnership.
C. To remove him as manager if he is appointed as manger of the partnership.
D. To expel him from the partnership and claim for damages.
38. A partnership which comprises all the profits that the partners may acquire by their work or industry
during the existence of the partnership is called:
A. Universal partnership of all present property C. Particular partnership
B. Universal partnership of profits D. Partnership at will
39. A partnership whereby the partners contribute to a common fund all the property actually belonging
to them at the time of the constitution of the partnership, with the intention of dividing the same among
themselves, as well as the profits which they may acquire therewith is:
40. A partnership without a definite period of existence and which can be dissolved at any time by any of
the partners is called:
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41. A, B and C, capitalist partners, each contributed P10,000 and D, the industrial partner contributed his
services. Suppose X, is the creditor of the firm amounting to P90,000. After getting the P30,000 capital
assets of the partnership, which is correct?
A. X can recover P20,000 each from A, B and C only.
B. X can recover P60,000 from either A, B and C only.
C. X can recover P15,000 each from A, B, C and D.
D. X can recover P15,000 each from A, B and C but D is exempt because he is an industrial partner.
42. A, B and C are partners. D is admitted as a new partner. Will D be liable for partnership
obligations contracted prior to his admission to the partnership?
A. No, only for those contracted after his admission.
B. Yes, and his liability would extend to his own individual property.
C. Yes, but his liability will extend only to his share in the partnership property and not to
his own individual property.
D. Yes, as if he had been an original partner.
43. A partner who has all the rights, powers and subject to all restrictions of a general partner but whose
liability is, among themselves, limited to his capital contribution is:
A. General partner C. General-limited partner
B. Limited partner D. Dormant partner
44. Bears the risk of things contributed to the partnership:

A. General partner
B. Limited partner
C. Partner contributing usufructuary rights over fungible things
D. Partner contributing usufructuary rights over non-fungible things
45. A, B and C, capitalist partners, each contributed P10,000. After exhausting the assets of the firm, the
firm’s indebtedness amounts to P90,000. It was stipulated that A would be exempted from liability. Which
is correct?
A. A may recover his original capital of P10,000.
B. The creditors may collect P30,000 each from A, B and C.
C. A can recover P20,000 each from B and C should he be required to pay the creditors.
D. The creditors can recover P45,000 each from B and C.
46. Instances when a partnership is unlawful, except

A. A partnership formed to furnish apartment houses which would be used or prostitution
B. A partnership formed for the purpose of acquiring parcels of land
C. A partnership formed for gambling purposes.
D. A partnership formed to create illegal monopolies or combinations in restraint of trade.
47. A and B orally agreed to form a partnership two years from today, each one to contribute P1,000. If at
the arrival of the period, one refuses to go ahead with the agreement, can the other enforce the
agreement?
A. Yes, because the partnership contract is not governed by the Statute of Frauds
B. Yes, because the prior agreement was voluntarily made.
C. No, because the agreement was merely oral and executor
D. No, since the agreement is to be enforced after one year from the making thereof, the same should be in
a public instrument to be enforceable.
48. Where at least one partner is a general partner and the rest are limited partners
A. General partnership C. Partnership de facto
B. Partnership by estoppels D. Limited partnership
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49. Where all the partners are general partners
A. General partnership C. Partnership de facto
B. Partnership by estoppels D. Limited partnership
50. A and B are equal partners in AB Partnership by contributing P50,000 each on June 1, 2010. On July 1,
2010, the partnership contracted an obligation to pay Z the amount of P180,000 on August 31, 2010. On
August 10, 2010, C was admitted as a new partner. C contributed P50,000. How will the obligation be
paid?
A. A P60,000; B P60,000; C P60,000
B. A P90,000; B P90,000; C None
C. A P180,000 or B P180,000 and C P50,000
D. A P65,000; B P65,000; C P50,000
51. A, B and C are equal partners in ABC Partnership. On April 29, 2010, C died. Not knowing that C is
dead, on May 2, 2010, A contracted a liability to D who also did not know about the death of C. The
liability is P90,000. After D exhausted the net assets of the partnership in the amount of P60,000, he can
collect
A. P30,000 from A or P30,000 from B.
B. P15,000 from A and P15,000 from B.
C. P10,000 from the estate of C, P10,000 from A and P10,000 from B.
D. P30,000 from the estate of C or P30,000 from B or P30,000 from C.
52. A, B and C are partners. Their contributions are as follows: A, P60,000; B, P40,000 and C, services. The
partners agreed to divide profits and losses in the following proportions: A, 35%; B, 25% and C 40%. If
there is a loss of P10,000, how should the said loss be shared by the partners?
A. A P6,000; B P4,000; C nothing C. A P3,500; B P3,500; C P3,000
B. A P3,000; B P2,000; C P5,000 D. A P3,500; B P2,500; C P4,000
53. Using the preceding number, but the partners did not agree on how to divide profits and losses. If
there is a loss of P10,000, how should the said loss be shared by the partners?
A. A P6,000; B P4,000; C nothing C. A P3,500; B P3,500; C P3,000
B. A P3,000; B P2,000; C P5,000 D. A P3,500; B P2,500; C P4,000
54. When the manner of management has not been agreed upon, who shall mange the affairs of the
partnership?
A. Capitalist partners C. Capitalist-industrialist partners
B. Industrial partners D. All of the partners
55. A, B and C are partners in a partnership business. A contributed P10,000, B contributed P5,000 and C
his services only. After payment of partnership debts, what remains of the partnership assets is P6,000
only. In the absence of stipulation to the contrary, the share of C will equal to:
A. That of A C. That of B
B. P2,000 D. Nothing
56. A, B and C are partners in ABC Co. D owes the partnership P4,500. A, a partner, received from D a
share of P1,500 ahead of partners B and C, giving D a receipt for his share only. When B and C were
collecting from D, the latter was already insolvent. Which of the following is correct?
A. Partner A can be required to share the P1,500 with B and C.
B. A cannot be required to share the P1,500 with B and C.
C. B and C should automatically exhaust first all remedies to collect from D.
D. B and C can automatically deduct from the capital contribution of A in the partnership, their respective
share in the P1,500.
45
57. A partnership suffered losses in the first year of its operation. A, a capitalist partner, cannot contribute
an additional share to the capital because of insolvency. Can A be obliged to sell his interest to the other
partners on the ground of such refusal?
A. Yes, A’ refusal to contribute additional share reflects his lack of interest in the continuance of the
partnership.
B. No, because there is actually no imminent loss of the business.
C. Yes, provided that A is paid the value of his interest.
D. No, because his refusal is justifiable.
58. Which of the following is considered prima facie evidence of the existence of a partnership?
A. Where payment of interest on a loan depends on the profit of the business.
B. The receipt by a person of a share in the profits.
C. The sharing of gross returns of a business.
D. Where the parties are established as co-owners of a property.
59. A and B are partners, with A as the managing partner. D is indebted to A in the amount of P10,000 and
to the partnership in the amount of P5,000. Both debts are due and demandable. D paid AP3,000. A issued
to D a receipt in his own name. How should the amount of P3,000 be applied?
A. The P3,000 should be applied to the indebtedness of D to A.
B. The P3,000 should be applied to the indebtedness of D to the partnership.
C. P2,000 should be applied to the indebtedness of D to the partnership and P1,000 to the indebtedness of
D to A.
D. P1,000 should be applied to the indebtedness of D to the partnership and P2,000 to the
indebtedness of D to A.
60. Using the preceding no. but A issued to D a receipt in the name of the partnership. How should the
payment of P3,000 be applied?
A. The P3,000 should be applied to the indebtedness of D to A.
B. The P3,000 should be applied to the indebtedness of D to the partnership.
C. P2,000 should be applied to the indebtedness of D to the partnership and P1,000 to the indebtedness of
D to A.
D. P1,000 should be applied to the indebtedness of D to the partnership and P2,000 to the indebtedness of
D to A.
61. A, B, C and D are partners. Their contributions are as follows: A, P50,000; B, P30,000; C, P20,000; D,
services. The partnership incurred obligations to third persons which the firm was unable to pay. After
exhausting the assets of the partnership, there still is unpaid balance of P10,000 to E. Who are liable to E
for the payment of the unpaid balance of P10,000 and how much should each pay to E?
A. A P5,000; B P3,000; C P2,000; D nothing
B. A P2,500; B P2,500; C P2,500; D P2,500
C. A P4,000; B P3,000; C P2,000; D P1,000
D. A P4,000; B P4,000; C P2,000; D nothing
62. One or more but less than all the partners have no authority to perform the following acts, except:
A. Do any act which would make it impossible to carry on the ordinary business of the partnership.
B. Submit a partnership claim or liability to arbitration.
C. Renounce a claim of the partnership.
D. Convey partnership property in the ordinary course of partnership business.
63. A, B and C are equal partners in ABC Partnership. The partnership is indebted to D for P150,000.
Partner A is indebted to E for P20,000. D attached and took all the assets of the partnership amounting to
P90,000. B and C are solvent while A is insolvent and that he owns is a land valued at P15,000. Which is
correct?
A. E has priority to the land of A as a separate creditor
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B. D has priority to the land of A to cover A’s share of the P60,000 remaining liability of the partnership.
C. B and C have priority to the land of A if they paid D the P60,000 remaining liability of the partnership.
D. D and E shall both have priority to the land of A in proportion to their claims of P60,000 and P20,000,
respectively.
64. A, B and C are partners. A is an industrial partner. During the first year of operation, the firm realized
a profit of P60,000. During the second year, the firm sustained a loss of P30,000. So, the net profit for the
two years of operation was only P30,000. In the Articles of Partnership, it was agreed that A, the
industrial partner would get 1/3 of the profit but would not share in the losses. How much will A, the
industrial partner will get?
A. A will get only P20,000 which is 1/3 of the profit of the 1st year of operation.
B. A will get only P10,000 which is 1/3 of the net profit.
C. A will get only P20,000 in the first year and none in the second year.
D. A will share in the loss in the second year.
65. Three (3) of the following are rights of a partner. Which one (1) is not?
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.
66. I. Partnership with a capital of three thousand pesos or more, in money or property, shall appear in a
public instrument, and recorded at SEC. Failure shall not affect the liability of a partnership and members
thereof to third person.
II. When immovable property is contributed, an inventory of said property is needed, signed by the
parties and attached to the public instrument, otherwise the contract of partnership is void.
A. True; True C. True; False
B. False; False D. False; True
67. I. Co-ownership or co-possession does not in itself establish a partnership, except when such co-
owners or co-possessors share in the profits made by the use of the property.
II. The sharing of gross returns does not of itself establish a partnership, except when the persons sharing
them have a joint or common right or interest in any property from which the returns are derived.
68. I. The receipt by a person of a share of the profits of a business is conclusive evidence that he is a
partner in the business.
II. A partnership of all present property is where the partners contribute all property which actually
belong to them to a common fund, with the intention of dividing the same among themselves, as well as
all the profits which they may acquire therewith.
69. I. In a universal partnership of all present property, the property which belong to each of the partners
at the time of constitution of the partnership becomes a common fund of all partners and all profits which
they may acquire through inheritance, legacy, or donation cannot be included in such stipulation, except
the fruits thereof.
II. The universal partnership of profits comprises all that the partners may acquire by industry or work
during the existence of the partnership. Movable or immovable property which each may possess at the
time of the celebration of the contract shall continue to pertain exclusively to each, only the usufruct
passing to the partnership.
47
70. I. A partnership must have a lawful object or purpose, and must be established for the common benefit
or interest of the partners.
II. When an unlawful partnership is dissolved by a judicial decree, the profits and partners’ contributions
shall be confiscated in favor of the State.
71. I. A partnership may be constituted in any form, except where immovable property or real rights are
contributed thereto, in which case a written instrument shall be necessary.
II. Every contract of partnership having a capital of three thousand pesos or more in money or property
shall appear in a public instrument which must be recorded in the office of the SEC, otherwise the
partnership is void.
72. I. A contract of partnership is void, whenever immovable property is contributed thereto, if an

inventory of said property is not made, signed by the parties and attached to the public instrument.
II. A universal partnership of profits is that in which the partners contribute all the property which
actually belongs to them to a common fund with the intention of dividing the same among themselves, as
well as the profits which they may acquired therewith.
73. I. In a universal partnership of profits, the property which belong to each of the partners at the time of
the constitution of the partnership becomes the common property of all the partners, as well as all the
profits which they may acquire therewith.
II. A universal partnership of all present property comprises only all that the partners may acquire by
their industry or work during the existence of the partnership.
74. I. A universal partnership of profits comprises all movable or immovable property which each of the
partners may possess at the time of the celebration of the contract and all that the partners may acquire
by their industry or work during the existence of the partnership.
II. Future property by inheritance, legacy or donation, including the fruits thereof cannot be included in
the stipulation regarding the universal partnership of all present property.
75. I. A and B are partners in a universal partnership of profits. Subsequently, A won first prize in the
sweepstakes. The prize money will belong to the partnership.
II. A and B are partners in a universal partnership of profits. Later A purchased a parcel of land. The fruits
of said land belong to the partnership.
76. I. Persons who are prohibited from giving each other any donation or advantage cannot enter into
universal or particular partnership.
II. A partnership begins from the moment of the execution of the contract, unless it is otherwise
stipulated.
48
77. I. If property has been promised by a partner as contribution to the partnership, the fruits arising
from the time the property should have been delivered should also be given provided prior demand was
made.
II. A partner who has undertaken to contribute a sum of money and fails to do so becomes a debtor for the
interest and damages from the time he should have complied with his obligation, without the need of any
demand.
78. I. The partners shall contribute equal shares to the capital of the partnership.
II. If there is no agreement to the contrary, in case of an imminent loss of the business of the partnership,
any partner who refuses to contribute additional share to the capital, to save the venture, shall be obliged
to sell his interest to the other partners.
79. I. If a partner collects a demandable sum, which was owed to him in his own name, from a person who
owed the partnership another sum also demandable, the sum thus collected shall be applied to the two
credits in proportion to their amounts, even though he may have given a receipt for his own credit only,
but should he have given it for the account of the partnership credit, the amount shall be fully applied to
the latter.
II. The risk of specific and determinate things contributed to the partnership so that only their use and
fruits may be for the common benefit, shall be borne by the partner who owns them.
80. I. In the absence of stipulation, the share of each partner in the profits and losses shall be equal to each
other.
II. A stipulation which excludes one or more partners from any share in the profits or losses is void, as a
general rule.
81. I. The partner who has been appointed manager may execute all acts of administration despite the
opposition of his partners, unless he should act in bad faith and his power is irrevocable without just or
lawful cause.
II. When the manner of management has not been agreed upon, none of the partners may, without the
consent of the others, make any important alterations in the property of the partnership, even if it may be
useful to the partnership.
82. I. Every partner may associate another person with him in his share, provided it is with the consent of
all of the other partners.
II. The capitalist partners cannot engage for their own account in any operation which is of the kind of
business in which the partnership is engaged, unless there is stipulation to the contrary.
83. I. Every partnership shall operate under a firm name, which shall include the name of one or more of
the partner.
II. All partners, excluding industrial ones, shall be liable pro-rata with all their property and after all
partnership assets have been exhausted, for the contracts which may be entered into in the name of and
49
for the account of the partnership, under its signature, and by a person authorized to act for the
partnership.
84. I. Persons who are not partners as to each other are not partners as to third persons, except in cases of
estoppel.
II. An admission or representation made by any partner concerning partnership affairs is evidence against
the partnership.
85. I. 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 incurred and that such
liability will extend to his own individual property.
II. B has worked for M and Co., as procurer of contracts for fertilizers to be manufactured by the firm, and
as supervisor of the mixing of the fertilizers. However, he had no voice in the management of the business
except in his task of supervising the mixing of said fertilizers. For his service, he is entitled to 35% of the
profits in the fertilizer business. He is a partner in M and Co.
86. I. C was a bookkeeper in a partnership named “AB”, with a yearly salary amounting t 5% of the net
profits or each year. C, however had no vote at all in the management of the business. He is a partner in
AB.
II. Unless there is a stipulation to the contrary, the partners shall contribute equal shares to the capital of
the partnership.
87. I. Every partner may associate another person with him in his share, but the associate shall not be
admitted in the partnership without the consent of all the other partners, even if the partner having an
associate should be a manager.
II. Articles of universal partnership, entered into without specification of its nature, only constitute
universal partnership of profits.
50

Law On ObliCon and ParCor

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Law On ObliCon and ParCor

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Law on ObliCon and ParCor

1.The following are the requisites of an obligation, except

2.The right of the creditor that is enforceable against a definite debtor is

3. Which of the following is a civil obligation?

4. Specific performance may not be possible in this civil obligation

6. A juridical necessity to give, to do or not to do

7. They give a right of action to compel their performance

9. This is based on equity and justice

10. The person in whose favor the obligation is constituted

11. Synonymous to obligee

13. Synonymous to obligor

14. The object or subject matter of the obligation

26. - A quasi-contract is an implied contract.

27. Tort or culpa aquiliana is

31. Ordinary diligence is

34. If A sells to B a fountain pen, the giving by A to B of the fountain pen is

Items 35-39 A kind of constructive delivery whereby:

36. There is delivery by mere consent or pointing out of an object.

37. A possessor of a thing not as an owner, becomes the possessor as owner.

39. The opposite of brevi-manu

40. If a thing is capable of particular designation.

43. The following are kinds of fruits of an obligation, except

45. Products of the soil through cultivation or intervention of human labor.

46. Fruits arising out of contracts- like rental payments.

47. When does the obligation to deliver arise?

50. Debtor’s default in real obligation.

51. Debtor’s default in personal obligation.

52. Default on the part of the creditor

53. Default on the part of both parties.

55. Damages awarded for mental and physical anguish.

56. Damages awarded to vindicate a right.

57. Damages awarded to set an example.

58. When the exact amount of damages cannot be ascertained.

59. Damages determined beforehand.

60. A obliged himself to deliver to B the following:

69. The thing itself shall be restored, as a rule

81. I - There is no delay in an obligation not to do something.

82. I - Consent of the parties is required in quasi-contract.

85. Which is not considered as quasi-contract?

87. If A pays a debt that has prescribed

89. This obligation is demandable at once when it

92. A period with a suspensive effect.

93. A period with a resolutory effect.

98. This is a valid obligation.

100. Using the preceding number, the right of choice, belongs

105. In a joint obligation, joint means any of the following, except

109. Instances where the law imposes solidary liability, except

110. This will result to a solidary liability

117. This is synonymous to joint obligation

118. This is synonymous to solidary obligation

130. This is an obligation with a resolutory obligation.

143. Where a property is alienated to the creditor in satisfaction of a debt in money.

149. This is not necessary in order that compensation may prosper.

150. Compensation cannot take place, except

153. Novation which changes the parties to the obligation

159. Legal subrogation is presumed in the following. Which is not correct?

4.The following are some accidental elements of a contract of sale, except

14. When there is concurrence of offer and acceptance, there is

15. An absolutely simulated or fictitious contract is

19. The conception of a contract is when

20. Contract which has no effect at all

21. Contract which cannot be ratified

28. The contact must bind both contracting parties