Professional Documents
Culture Documents
Qualifying - Exam Business Law
Qualifying - Exam Business Law
Business Law
1 On September 21, 2010, Piolo agreed to sell his only carabao to Sam and Sam agreed
to pay the price of P25,000 if Sam will pass the October 2010 CPA Examination. The list
of successful examinees was released on October 21, 2010 and Sam is one of those
who passed the examination. As a result,
a Piolo is entitled to the P25,000 price plus interest beginning September 21, 2010.
b Sam is entitled to the carabao and its fruits beginning September 21, 2010.
c Sam is entitled to the carabao beginning September 21, 2010 and to its fruits
beginning October 21, 2010.
d Piolo shall deliver the fruits of the carabao and Sam shall pay the interest on the
price beginning September 21, 2010.
c. Sam is entitled to the carabao beginning September 21, 2010 and to its fruits
beginning October 21, 2010.
c. Prescription
3 S1: The debtor shall lose the right to make use of the period when he does not furnish
any guaranty or security to the creditor.
S2: In an obligation subject to a suspensive period, what is suspended is birth of the
obligation.
a True;true b. true;false c. false;false d. false;true
c. false;false
4 “I will give you my car provided that if I like to have it back, you will return the same to
me.”
a The obligation is void, because the fulfillment depends upon the will of the debtor.
b The obligation is void, because the fulfillment depends upon the will of the creditor.
c The obligation is valid because the condition merely causes the loss of rights already
acquired.
d Both A and B.
c. The obligation is valid because the condition merely causes the loss of
rights already acquired.
5 Which of the following is not a conditional obligation?
a D to give C P1,000 if C passes the examination.
b D to pay C P1,000 if he has the means.
c D to give C a horse if C marries X.
d D is to use C’s car until C returns from Davao.
6 A, B and C are solidary debtors of X and Y, solidary creditors, for P60,000. X makes a
demand to A but the latter paid Y. In here, the obligation is not extinguished.
A and B solidary debtors of X, Y and Z, solidary creditors. X demands payment from A,
but B, upon whom no demand is made paid Z the entire obligation. In here, the
obligation is totally extinguished.
a True;true b. true;false c. false;false d. false;true
a. True;true
7 Joy makes a not payable to the order of Christine in the amount of P10,000.00. Christine
indorsers the note Ali as follows “Pay to Ali if he passes the 2015 Bar Examination.”
a Joy must wait for the condition to be fulfilled before he can pay Ali
b Joy may pay Ali even if the condition has not been fulfilled but Ali has to hold the
proceeds subject to the rights of Christine.
c Joy cannot be compelled to pay even if the condition is fulfilled because the
conditional indorsement renders the instrument non-negotiable.
d Joy may Ali even if the condition has not been fulfilled. The fulfillment of the
condition becomes immaterial and Ali becomes the absolute owner of the
proceeds of the note.
b. Joy may pay Ali even if the condition has not been fulfilled but Ali has to
hold the proceeds subject to the rights of Christine.
8 Elmo is obliged to give Bert, either a ring worth P5,000; or bracelet worth P4,500; or a
watch worth P4,000. All the objects were lost due to Elmo’s fault in the order stated.
a Elmo’s obligation is extinguished.
b Elmo’s obligation is to pay the value of the ring plus damages.
c Bert’s right is to demand the value of any of the objects plus damages.
d Elmo’s obligation is to pay the value of the watch plus damages.
9 A obliged himself to deliver the cans of powdered milk of B from his warehouse in
Pangasinan to Manila. While his truck was traveling on the North expressway, it was hi-
jacked by a band of robber who also took the cans of milk belonging to B. Is A liable for
the loss of the goods?
a No, because they were generic things and as they cannot be lost.
b Yes, because he was in possession of the same at the time of the loss and therefore
presumed at fault.
c Yes, because there was no stipulation exempting him from loss in case of fortuitous
event.
d No, because the loss was due to fortuitous event.
10 Sister offered his car to Brother for P1M and giving the latter one week to decide.
Brother in turn gave Sister P1,000. In this case, there is
a Contract of sale of the car with the P1,000 as earnest money
b Contract of option with the P1,000 as option money
c Contract to sell of the car at B’s option
d Contract to sell of the car at S’s option
a. Unenforceable
12 The following even if not in public instrument are valid, binding and enforceable except
a Negotiable instruments
b Sale of land, either by the owner or agent with written authority
c Agency, pledge, mortgage
d Partnership contract wherein immovables are contributed
15 A, agent of P, in excess of authority, entered into a contract in the name of P with X who
knew of the lack of authority and P did not ratify the contract. The contract is
a Rescissible b. voidable c. unenforceable d. Void
d. Void
16 If a third person pays an obligation. What are the rights, which are available to him if he
pays the obligation with the knowledge and consent of the debtor?
1st answer – He can recover from the debtor the entire amount, which he has paid.
2nd answer – He subrogated to all of the rights of the creditor.
a Both answers are correct. c. Only the first is correct.
b Both answers are wrong. d. Only the second is correct.
17 If the obligor binds himself to perform his obligation “as soon as he shall have obtained a
loan” from a certain bank. This obligation is
a With a term c. with a period
b With a suspensive condition d. with a resolutory condition
a I and II
b II and III
c I and III
d I, II, and III
b. II and III
d. accion pauliana
21 S1: Consignation without tender of payment is sufficient if two or more persons claim the
same right to collect.
S2: When the debt of a thing certain proceeds from a criminal offense, the debtor shall
be exempted from the payment of the price of the thing is lost through a fortuitous event.
a Both statements are true.
b Both statements are false.
c S1 is true; S2 is false.
d S1 is false; S2 is true.
c. S1 is true; S2 is false.
22 The meeting of minds manifests consent after the acceptance upon the thing and the
cause which are to constitute the contract. Which of the following constitute a definite
offer?
a An offer made through an agent.
b Business advertisements of things for sale.
c Advertisements for bidders.
d None of the above.
c. Constructive acceptance
24 S1: In a natural obligation, the creditor has the right to enforce the performance thereof
it being based on positive law.
S2: Solutio indebiti and negotiorum gestio are quasi-contracts that give rise to civil
obligations.
d. False; True
25 S1: Mara borrowed P10,000 from Clara. On due date, Mara paid the debt to Clara who had
become insane. If Clara kept only P6,000 and threw away P4,000, then payment will be
valid for only P6,000.
S2: Lea makes a note payable to bearer and delivers it to Mateo. The note, however, is lost
by Mateo and is picked up Lyka. Lyka goes to Lea to collect on the note. Lea pays Lyka
believing in good faith that Lyka is the intended bearer. Lea is still not released from liability.
a True; True; b. True; False c. False; Fasle d. False; True
b. True; False
26 In order that condonation may extinguish an obligation involving a movable property whose
value exceeds P5,000.00 –
a It is sufficient that the condonation and the acceptance are in writing, even a private one.
b It is required that the condonation and the acceptance must be in a public instrument.
c The delivery of the document evidencing the debt is sufficient since the property is
movable.
d The condonation and the acceptance may be made orally.
a. It is sufficient that the condonation and the acceptance are in writing, even a
private one.
27 It is the manifestation of the meeting of the offer and the acceptance upon the thing which
are to constitute the contract
a Consideration
b Contract
c Consent
d Cause
c. Consent
28 M makes a promissory note for P10,000.00 payable to the order of P. After the issuance to
him of the note, P altered the to US$10,000.00. P then endorsed the note to A, A to B, and B
to H. Only P knew of the alteration.
c. I and V
29 An employee embezzled a sum of money from her employer, and in order that she would
not be prosecuted, her husband signed a promissory note to pay the amount embezzled,
with interest to the victim. Which is correct?
a The husband is liable because the note was executed by the husband voluntarily
b The recovery shall be limited only to the amount embezzled without any interest
c The employer may recover from the husband of the employee and may still prosecute
the employee
d No recovery can be made on the note because the consideration is illicit
S2: In a partnership, juridical personality commences from the execution of the articles of
the partnership; in a corporation, from the issuance of certificate of incorporation by the
Securities and Exchange Commission.
a True; True b. True; False c. False; False d. False; True
a. True; True
a Only Arnold and Ben are liable equally to the creditors being capitalists
b Only Arnold and Ben are liable at 1/3 and 2/3, respectively
c All of Arnold, Ben and Charlie are liable pro rata to the creditors
d Charlie is not liable being an industrial partner who is exempt from losses
c. All of Arnold, Ben and Charlie are liable pro rata to the creditors
34 Joseph, Aris, Dex and Earl are partners in JADE Enterprises, a jewelry store, with Joseph
contributing P50,000.00; Aris, P20,000.00; and Dex, P30,000.00. Earl is an industrial partner
and manages the partnership. Based on the foregoing information, which one of the
following statements is false?
a Joseph may engage in the buying and selling of rice without the consent of the other
partners
b Earl may engage in the buying and selling of rice without the consent of the other
partners
c Earl is not liable for the losses of the partnership
d Earl may be held liable by third persons for partnership debts with her separate property
b. Earl may engage in the buying and selling of rice without the consent of the
other partners
35 Which of the following defences may a party to an instrument avail himself of against any
holder?
a Want of delivery of incomplete instrument.
b Want of authority to complete an instrument that was delivered.
c Want of delivery of complete instrument.
d Want or absence of consideration.
36 MARILEN Company is owned by the following partners with their respective contributions:
Mary, P10,000.00; Anna, P20,000.00; Rose, P30,000.00; Irma, P40,000.00; Liza,
P50,000.00; Edna, P100,000.00; and Nora, P200,000. Except for Edna and Nora, all the
rest are managers without any specification as to their respective duties. Mary wants to buy
goods from Excellent Company. Liza opposes. Anna and Rose side with Mary while Irma
sides with Liza.
a The group of Mary will prevail because they constitute the majority.
b The group of Liza will prevail because they constitute the controlling interest.
c The group of Mary will prevail because they constitute the controlling interest.
d Suppose Rose abstains, the group of Mary will prevail.
a. The group of Mary will prevail because they constitute the majority.
d. The omission of the signature of the maker above his typewritten name.
38 What is the order of payment of liabilities of a dissolved general partnership using the code
number representing each liability?
39 The articles of incorporation differ from the by-laws in that the articles of incorporation are:
40 Which of the following is a common liability of the drawer, maker, and acceptor?
a The admission of the genuineness of the signature of any indorser.
b The admission of the existence of the payee and his capacity of the payee to
indorse.
c The admission that the instrument is covered with sufficient funds.
d The engagement on the payment of the instrument according to its tenor.
b. The admission of the existence of the payee and his capacity of the
payee to indorse.
a To be voted
b To vote or be represented in the meetings of stockholders
c To dividends
d He is not entitled to all the rights of a stockholder
c. To dividends
43 All of the following, except one are qualifications of a director or trustee. Which is it?
a He must be the owner of at least 1 share of stock which shall stand in his name on the
books of the corporation
b Majority of the directors or trustees must be residents of the Philippines
c The number must not be less than 5 not more than 15
d In case of a non-stock corporation, a trustee is not required to be a member of the
corporation
S2: The election must be made through the raising of hands if requested by any voting
stockholder or member. If there is no such request, voting may be made through other
means like secret ballot.
a True; True b. True; False c. False; False d. False; True
b. True; False
46 Which of the following subscriptions does not comply with the subscription and paid-up
capital requirements at the time of incorporation?
47 A corporation may acquire its own shares for a legitimate purpose provided it has
unrestricted retained earnings. In which of the following acquisitions is the requirement of
unrestricted retained earnings not imposed?
48 Fatima Corporation has a statement of capital stock in its articles of incorporation but it was
stated in the same articles that dividends are not supposed to be declared , that is , there is
no distribution of retained earnings. Fatima Corporation is:
a Stock corporation c. Corporation by prescription
b Non-stock corporation d. Corporation by estoppels
b. Non-stock corporation
49 How many number of votes of the board of directors are required to change the name of a
corporation?
a 2/3 of all members of the board
b 2/3 vote of all present
c Majority vote of all present constituting a quorum
d Majority vote of the board