Has priority over partnership assets: 

*
1 point

Creditors
All of the above
Debtors
Partners

If the thing pledge is sold, but the procedds of the sale is less than the principal obligation, the pledgee can collect
the deficiency from the pledgor. *
1 point

False
True

The receipt by a person of a share of the profits of a business, except where such profits were received in
payment: *
1 point

As a debt installments
As wages of an employee or rent to a landlord
As an annuity to a window or representative of a deceased partner
As interest on a loan
All of the above

A partner who is liable for the payment of partnership debts to the extent of his separate property after the
partnership assets are exhausted is called: *
1 point

Limited partner
Silent partner
General partner
Managing partner

The remedy of capitalist partners against an industrial partner who engaged in a business for himself without the
expressed permission from the partnership is: *
1 point

To expel him from the partnership and claim for damages

To exclude him from sharing in the profits of the Partnership
To remove him as manager if he is appointed as manager of partnership
To compel the industrial partner to sell his interest to the said capitalist partners

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

c. S or B can rescind the sale because there is no meeting of minds.

b. S is bound to deliver 500 square meters and B to pay P55,000.
a. S is bound to deliver 500 square meters and B to pay P50,000.
d. None of the above.

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,A was able to make B sell
to him (A) his (B’s) share in the partnership. Then A sold the land at a big profit. *
1 point

A is liable to B for the latter’s share in the profit

The partnership was dissolved when A became the sole owner
The sale of the land to C is void since it was without the knowledge of B
C is liable to B for the latter’s share in the profit

Through insidious words or machinations, A was able to induce B to enter into a contract which without them B
would not have agreed to it. There is:
2 points

Undue Influence
Fraud
Mistake
Misrepresentation

Ownership of incorporeal property is transferred to the buyer: *

1 point

c. Use the buyer of his right,with the seller's consent.

d. All of the above.
b. Placing the title ownership in the possession of the buyer.
a. Executing of the sale in a public document.

S offered for sale to B 10 cavans of wagwag rice. B asks S for the price per cavan. S told B that the price per sack
is P50.00 over the price in Divisoria Market. The price is- *
1 point

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

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

May contribute money, property or industry to the common fund: *

1 point

None of them
Limited partner
Both limited and general partners
General partner

Useless otherwise agreed, where goods are delivered to the buyer and he refuses to accept them, having the right
to do so, he is not bound to return them to the seller, but it is sufficient if he notifies the seller that he refuses to
accept them, if he voluntarily constitutes himself a depository thereof, he shall be liable as such.  *
1 point

False
True

In a contract of sale executed by S and B, it appears S sold his motor vehicle to B and the latter bought it for
P50,000. It turned out however, that S has three motor vehicles: Galant valued at P80,000; Hi-Ace van valued at
P70,000; and a Jeep valued at P60,000. which of the following is correct? *
1 point

d. There is no contract, becuase the object is not certain.

a. The contract shall be reformed because there was mistake.
b. The parties can ask for interpretation because the word motor vehicle is ambiguous.
c. The parties can ask for annulment of the contract.
S sold a residential land to B, who paid the consideration. When B wanted to register the sale in the Register of
Deeds. the latter refused to register it and required the presentation of the certificate of capital gains tax payment.
What can B do? *
1 point

d. B may compel S to pay the capital gains tax and secure the certificate of capital gains tax payment.
b. B cannot compel S to return the selling price because the contract is not enforceable.
a. B may sue S to refund the consideration paid by B under the maxim, " no one shall enrich himself at the
expense of another."
c. B may possess the residential land as buyer in good faith.

If two or more adjoining owners desire to exercise the right of redemption at the same time, the owner of the
adjoining land of smaller area shall be preferred. Should both lands have the same area, the one who first
requested the redemption. *
1 point

False
True

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

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

There is a contract of sale: *

1 point

d. When goods are delivered to an agent to be sold by him and the agent is not liable to the manufacturer of the
goods.
a. When goods are delivered to a distributor on consignment.
c. When goods are delivered to a person on charge acount.
b. When the manufacturer delivers the goods to an agent where the former retains the ownership and dictates the
terms of the sale.

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

c. Yes, because the contract was already manifested at the time of the offer.
d. Yes, because B's acceptance is not qualified.
a. Yes, because there was a meeting of minds between S and B.
b. No, S made another offer not accepted by B.

Legal redemption is the right to be subrogated, upon the same terms and conditions stipulated in the contract, in
the place of one who acquires a thing by purchase or dation in payment or buy any other transaction whereby
ownership is transmitted by onerous title. *
1 point

False
True

A real estate mortgage is inseparable; directly and immediately subjects the property upon which it is imposed,
whoever the possessor maybe, to the fulfillment of the obligation. *
1 point
True
False

Ownership of the thing sold: *

1 point

a. Is transferred to the buyer upon actual delivery.

d. Is retained by the seller in "sale or return".
b. Is acquired by the buyer upon the perfection of the contract.
c. Is transferred to the buyer upon constructive or actual delivery of the thing.

Statement No. 1: Invitation to bid are not define offers, the adviser is not bound to accept the highest or lowest
bidder. Statement No. 2 By-bidders are persons bidding in an auction sale in behalf of the seller; the purpose is to
raise the price by fictitious fids. *
1 point

a. Both are true.

c. No. 1 is true; No. 2 is false.
b. Both are false.
d. No. 1 is false; No. 2 is true.

In case of diminution or impairment in the value of the thing pledged, without the fault of the pledgee, the same
may be sold at a public sale, without notifying the pledgor. *
1 point

False
True

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: *
1 point

Universal partnership of all present property

Universal partnership of profits
Particular partnership
Partnership at will
None of the above

S sold to b a specific piano.It was agreed that S would fix the price a week later. At the appointed time, S pegged
the price at P6,000. b agreed. Is the sale perfected? *
1 point

c. Yes, because the price fixed by one of the parties was accepted by the other.
d. Answer not given.
b. No, because at the time of sale the price was not fixed.
a. No, because the price was left to the discretion of one of the contracting parties.

When the manner of management has not been agreed upon, who shall manage the affairs of the partnership?  *
1 point

Capitalist partners
All of the partners
Industrial partners
Capitalist-industrialist partners
None of the above

Which of the following cannot be the object of a contract of sale? *

1 point
c. Young of animal not yet conceived at the time of perfection.
e. None of the above
b. Sale of credit.
a. Hereditary right.
d. Land which the seller expects to buy.

An unregistered chattel mortgage is valid upon the parties but void as to innocent third persons.  *
1 point

True
False

The unpaid seller is not entitled to retain possession of the goods where- *
1 point

b. The goods have been sold on credit, but the term of credits has expired.
e. None of the above.
c. The buyer is insolvent.
d. The possession of the seller on the goods is only as agent or bailee for the buyer.
a. The goods have been sold without any stipulation as to credit.

In mortgage, the mortgagee is entitled to the entire proceeds of the sale of the thing morgaged.  *
1 point

False
True

Statement No. 1: If the price is grossly inadequate, the contract of sale is affected. and if the price is absolutely
simulated, the contract is void. Statement No. 2: The fixing of the price can never be left to the discretion of one
of the parties. However, it may be fixed by a third person. *
1 point

a. Both are True

c. No.1 is true; No. 2 is false.
b. Both are false
d. No.1 is false; No. 2 is true.

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 of P10,000 be shared by the partner? *
1 point

A, P3,500; B, P3,500; C, P3,000

A, P3,500; B, P2,500; C, P4,000
A, P3,000; B, P2,000; C, P5,000
A, P6,000; B, P4,000; C,nothing
None of the above

Contracts which cannot be sued upon unless ratified, thus it is as if they have no effect yet are:  *
2 points

Rescissible
Voidable
Void
Unenforceable
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? *
1 point

No, even if A was in default, he could plead impossibility of performance.

No, because there was no demand by B to deliver the car.
Yes, because the contract is perfected.
Yes, the obligation to deliver the car is changed to pay the equivalent value because B is in legal delay.

Sam is obliged to give Ben on March 1, 2011 a particular parcel of land.Which of the following statements below
is correct? *
1 point

The obligation to deliver arises upon full payment of the parcel of land
The obligation to deliver arises upon the fulfilment of the condition.
The obligation to deliver arises upon the arrival of the term.
The obligation to deliver arises upon the perfection of the contract.

In chattel mortgage is entitled to the entire proceeds of the sale of the thing morgaged.  *
1 point

True
False

In case of pledge of animal, their offspring shall pertain to the pledgor of the animal pledged and are no longer
subject to the pledge, unless stipulated. *
1 point

True
False

On application by or for partner the court shall decree a dissolution whenever:  *

1 point

A partner becomes in any other way incapable of performing his part of the partnership contact.
The business of the partnership can only be carried on at a loss.
All of the above
A partner willfully or persistently commits a breach of the partnership agreement that it is not reasonably
practicable to carry on the business in partnership with him.
A partner has been guilty of such conduct as it tends to affect prejudicially carrying on of the business.

The seller who executed a deed of sale in a public instrument for the sale of specific car transferred ownership to
the buyer by- *
1 point

e. None of the above

c. Constitutum possessorium
a. Symbolic delivery
d. Quasi-tradition
b. Traditio brevi-manu

When the debtor binds himself to pay when his means permit him to do so, the obligation is:  *
2 points

With a Period
Simple
Conditional
Pure

Quasi-tradition is equivalent to: *

1 point

e. All of the above.

b. Execution of a public instrument.
a. Longa manu
d. Brevi-manu
c. Symbolical delivery

X, after the death of his father, sold his inheritance to though its amount has not yet been determined, for a
consideration of P50,000. *
1 point

a. The contract is valid only if the inheritance values at least equal to or more than P50,000.
d. Contract is void future inheritance cannot be the object of sale.
c. The contract is valid even though nothing remains of the inheritance to be turned over to B.
b. The contract is rescissble.

With regard to the right as to the fruits of the thing, which is not correct?  *
1 point

If the obligation is subject to a suspensive condition, the obligation to deliver arises upon the expiration of the
term or period
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.
If the obligation is subject to a suspensive condition, the obligation to deliver arises from the moment the
condition happens.
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.

X, a debtor did not deliver his car on February 1, 2011. A Typhoon happened and the car to be delivered was
destroyed on February 03, 2011. Will X be liable for the damage? Choose the best answer:  *
1 point

No, because X was not guilty of bad faith, a recognized exception where a fortuitous event does not exempt
No, X obligation is extinguished. A specific obligation as a rule is extinguished by a fortuitous event or act of
God.
No, because X is not yet in legal delay
Yes, X will be liable. The obligation is not extinguished based on the principle of genus nunquam perit

In chattel; mortgage, the mortgagor must execute an affidavit of good faith in order that the mortgage shall be
valid against third persons. *
1 point

True
False

A partnership where all the partners are general partner who as such are liable for partnership debts to the extent
of their separate property after all the partnership assets have been exhausted is called:  *
1 point

Particular partnership
Universal partnership
General partnership
Limited partnership
None of the above
Can only be made with the consent of all partners: *
1 point

Sell equipment
None of the above
Borrow money
Waiver or compromise

Statement No. 1: In sale for a lump sum price (LSP), the vendee may ask for reduction in the price, if the vendee
cannot deliver all what is stated in the boundaries. Statement No. 2: There is an implied warranty in contracts of
sale that the vendor must have a right to sell at the time the contract perfected.  *
1 point

d. No. 1 is false; No. 2 is true

a. Both are true.
b. Both are false
c. No. 1 is true; No. 2 is false.

If the thing pledge is returned by the pledgee to the pledgor or owner, the principal obligation is extinguished.  *
1 point

False
True

The Recto Law is applicable for: *

1 point

d. None of the above.

c. Sale of car on installment where the buyer constituted a mortgage on his truck.
a. Sale of car on straight term.
b. Sale of hose on installment.

Pledge is a real contract which is perfected from the time the thing pledged is placed in the possession of the
creditor, or of a third person by common agreement. *
1 point

False
True

Which of the following statements is false? *

1 point

a. In contract to sell, ownership is not transferred to the buyer upon delivery.

b. Stoppage in transitu can be exercised by the unpaid seller if the buyer is insolvent and the vendor has not yet
parted with the thing sold.
d. Dock warrant is an example of a negotiable document of title.
c. The price is considered certain if it is in reference to another thing certain.

When the characters of the creditor and the debtor are merged in one and the same person, there is
extinguishment of the obligation by:
2 points

Compensation
Merger of Rights
Novation
Remission
The court determines the amount of damage taking into consideration the price of the thing and its sentimental
value to the injured person. *
1 point

Reparation
Restitution
Starvation
Indemnification

A, B and C a re co-workers of an undivided parcel of land. B sold his 1/3 interest to C absolutely. Which is
correct? *
1 point

d. A may redeem only 1/2 of the interest sold by B to C.

c. The sale made by B to C is void because it was not made in favor of a stranger.
a. A may exercise his right of redemption on the interest sold by B to C.
b. A cannot exercise his right of redemption because the sale was made in favor of a co-owner.

If the obligation of the debtor is "I will pay you my debt after I have arrived from abroad," this is  *
2 points

Unenforceable
With a Period
Void
Conditional

Any stipulation in contract of pledge authorizing the pledgee to sell the thing pledge if the pledgor cannot pay is
void. *
1 point

False
True

A chattel mortgage exists when personal property is recorded in the Chattel Mortgage Registry as a security for
the performance of an obligation. *
1 point

True
False

A stipulation forbidding the owner from alienating the immovable mortgaged is valid. *
1 point

True
False

Sale is distinguished from dation in payment, in that in sale; *

1 point

a. There is a pre-existing obligation or credit.

d. None of the above.
c. It is a mode of extinguishing an obligation in the form of payment.
b. The cause is the price.

When it is stipulated that the repurchase of the property sold could be made at any time, the repurchase shall be
exercised- *
1 point
b. Within ten years from the date of the contract.
a. Within four years from the date of the contract.
d. None of them.
c. After ten years from the date of the contract.

If several persons, jointly and i the same contract, should dell an undivided immovable with a right of repurchase,
none of the may exercise this right for more than his respective share. *
1 point

True
False

The mortgagee has the right to take possession of the chattel mortgage upon default of the mortgagor.  *
1 point

False
True

A partnership is automatically dissolved, except: *

1 point

By the insolvency of any partner or of the partnership

By the insanity of any partner
By the civil interdiction of any partner
By the death of any partner
All of the above

D borrowed P50k from C. C dies before he got paid. He has a son S. Which of the following is correct?  *
1 point

S can collect only if there was agreement between D and C

S cannot collect because the debt is personal to C
S can collect from D even if there is no agreement between D and C that S can collect
There is no more debt to speak of because C died

S sold to B orally a parcel of land for P200,000. Delivery was made of the land.The payment of the price was to
be made three months later. At the end of the three month period, *
1 point

a. B may refuse to pay claiming as his defense the Statute of Frauds.

d. B may refuse to pay on the ground that there is no written contract to support the sale.
c. S can collect from B because the contract was already executed partially.
b. B may return the parcel of land to S.

The right of redemption of co-owners excludes that of the adjoining owners. *

1 point

True
False

The vendor need not to be the owner at the time the sale is perfected. It is sufficient that he is the owner at the
time the thing sold is delivered. *
1 point

True
False
S deliver to B a piece of jewelry for a piece of jewelry for a price of P30,000. The contract provides that B will
pay S P15,000 cash and for the balance. B will give S a micro oven worth P15,000. What is the nature of the
contract? *
1 point

a. Sale
b. Partly sale and partly barter.
d. Commondatum
c. barter

Incorporeal rights, evidenced by negotiable instrument, bills of lading, shares of stock, bond, warehouse receipts
and similar documents may also be pledge. The instrument proving the right pledged shall be delivered to the
creditor, and if negotiable, must be endorsed. *
1 point

False
True

S, 16 years old, sold to b, of legal age, a specific diamond ring for P10,000. Later, B sold it to X. Which of the
following statement is incorrect? *
1 point

d. None of the above.

c. X, if in bad faith, shall also be the owner , except that his title is voidable.
b. X, if in good faith, shall become the owner upon delivery to him.
a. S has got a voidable title because at the time of sale he is a minor.

Warranty against hidden defect is: *

1 point

d. None of the above

a. An essential element
c. Natural element
b. Accidental element

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

d. Free from charges or encumbrances not declared or known to the buyer.

b. Right to sell the thing at the time the contract is perfected.
c. Merchantable is equality.
a. Reasonably fit for the purpose they are acquired.

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. *
1 point

A and B will divide the loss equally.

A is liable because he is in delay.
A’s obligation is converted into a monetary obligation.
A is not liable because the obligation is extinguished.

S sells to B his 2017 Camaro car, and leaves to B to determine the price. B refuses to fix the price but tool the car
and used it. Which of the following statements is correct? *
1 point

d. S may go to court and ask for damages.

a. No sale, because the price is not fixed by the parties.
b. There is sale. B must pay a reasonable price.
c. No sale until a third person fixes the price.

A possessor of a thing as an owner retains possession no longer as an owner, but in some other capacity  *
1 point

Traditio simbolica
Traditio longa-manu
Traditio brevi-manu
Traditio constitutom possessorium

X, Y and Z are in partnership business. X contributed P10,000, Y contributed P5,000 and Z his services only.
After payment of partnership debts, what remains of the partnership assests is P6,000 only. In the absence of
terms to the contrary, the share of Z will be equal to: *
1 point

P2,000
That of X
That of Y
Nothing

If two or more things are pledged, the pledgee may choose which he will cause to be sold, unless there is
stipulation to the contrary. He may demand the sale of only as many of the things as are necessary for the
payment of the debt. *
1 point

False
True

If the immovable mortgaged is sold, and the amount realized is less than the mortgage debt, the buyer of the
mortgaged property is liable to pay the deficiency, if any. *
1 point

True
False

B bought from S a specific tractor for P10,00. B paid P5,000 on the date of sale, and the balance to be paid at the
residence of B (Manila) three days thereafter. While en route to Manila the tractor was sold and delivered by S to
X for P8,000. Which of the following is correct? *
1 point

d. B has no more right because X took lawful possession.

c. B can sue for specific performance.
b. B can rescind the sale, because S cannot comply anymore with his obligation.
a. B is the owner because he has got an older title.

Which of the following statement is true? *

1 point

c. Sale con pacto de reti is an example of sale subject to a suspensive condition.

b. In sale with a right to repurchase, upon delivery the buyer is the absolute owner.
a. In contract to sell, ownership is transferred to the buyer upon delivery.
d. "When the vendor binds herslef to pay the taxes on the thing sold", it is presumed that the transaction is
mortgage and not governed by contract of sale.

P, the owner of a piece of residential land, orally authorized A to sell the land for P500.00 with 5% commission.
Today, A sold the land to C . One day later, P sold the same land to D. Assuming that both buyers are in good
faith, who is the lawful owner? *
1 point

b. C, because A was given authority by P.

c. D, because the sale made by A to C is only voidable.
a. C, being the first buyer.
d. D, because the sale between A and C is void.

The ownership on the thing shall not pass to the purchaser until he has fully paid the price  *
1 point

False
True

Name *

Your answer

If at the time the contact of sale is perfected, the thing which is the object of the contract has been partially lost,
the contract shall be without effect. *
1 point

False
True

D is obliged to give C a specific watch, a specific ring or a specific bracelet. The parties agreed that C will have
the right to choose the thing which will be given to him. Before C could make his choice, the watch and the ring
are lost through D's fault, successively. What is the right of C? *
1 point

No more obligation because all the thing lost are determinate things
D can choose to pay the price of the watch or the ring or the bracelet plus damages
C can demand the payment for the price of the watch or the ring or the bracelet plus damages
D should pay the price of the bracelet because it is the last thing lost plus damages
D is liable for damages

D is obliged to deliver 5 bags of powder soap to C 7 days from their agreement. On due date, D delivered 5 bags
of powder soap mixed with chalk. *
1 point

I don't care
Obligation is extinguished
The agreement is valid
D is guilty of Dolo Causante
The agreement is void

In a contract of sale of a specific mare dated September 1, 2017, seller S is obliged to deliver to the buyer the
mare on October 31, 2017. A week before the due date, the mare gave birth to a colt. The colt belongs to:  *
1 point

b. Seller, because there was no specific agreement that it shall belong to the buyer.
d. Buyer , if he pays the price in full.
c. Buyer, Because the fruit arose after the sale was perfected.
a. Seller, because the sell is already perfected prior to its birth.

As a general rule, a partner cannot ask for a formal accounting of the affairs of the partnership during its
existence and before it is dissolved, except: *
1 point
When he is wrongfully excluded from the partnership business
As provided by Article 1807
Whenever other circumtances render it just and reasonable
When the right exist under the term of any agreement
All of the above

The sale of vain hope or expectancy is voidable. *

1 point

False
True

Four are the following are kinds of constructive delivery. what is the exception? *
1 point

b. Quasi-tradition.
d. Symbol or token signifying delivery.
c. Actual delivery.
d. Need not be delivered because the buyer is already in possession.
a. Execution of public instrument.

Connie transferred to Violita a parcel of land for the price of P100,000; P30,000 to be paid in cash and for the
difference, she will convey her car worth P70,000. What kind of contract is this? *
1 point

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

If the pledge earns or produces fruits, income, dividends, or interests, the creditor shall compensate what he
receives with those which are owning him. But if none are owning him, or insofar s the amount may exceed that
which is due, he shall apply it to the principal. Unless there is a stipulation to the contrary, the pledge shall be
extend to the interest and earnings of the right pledge. *
1 point

False
True

On January 10, 2017 S sold a piece of alnd to B in a public instrument. On January 11, 2017, B paid for the price.
On January 12, 2017, B took possession of the land. On January 13, 2017, B registered the public instrument.
Under the circumstances given, B became the owner on: *
1 point

d. January 13, 2017

c. January 12, 2017
b. January 11, 2017
a. January 10, 2017

X stole a fountain pen from 'O" and sold it in Bazaar who pays for it in good faith, not knowing it was stolen. The
Bazaar then sold it to B, a student. *
1 point

c. "O" may recover the fountain pen from B without reimbursement because he is the legal owner.
d. B cannot become the owner because X, the original seller, is not the owner.
a. The Bazaar having both in good faith becomes the legal owner and as such, he can transfer ownership to B.
b. Ownership passed to B because he bought it in a merchant store.
Three of the following are elements of the vendor's right of stoppage in transitu. Which is the exception?  *
1 point

d. The seller must be in possession of the goods.

b. The goods must be in transit.
a. The buyer must be insolvent
c. The seller must be unpaid.