REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS ital Preboard Examination ‘May 2022 CPALE i. cbligations (10) 1. Bead borrowed Ppl, 000,000.00 from Lester and Jason who acted as solidary creditors. then the loan matured, Lester wrote a letter to Brad, demanding payment of the loan directly to him. Before Brad could comply, Jason vent to see him personally to collect and he paid him. Did Brad make a valid payment? A. No, since Brad should have split the payment between Lester and Jason. B. No, since Lester, the other solidary creditor, already made a prior denand for payment from Brad, C.¥es, since the payment complied vith all the legal requirenents, particularly completeness, and therefore covers the whole obligation D. Yes, since Jason was a solidary creditor, payment to him extinguished the obligation Lester bought Brad's property through Jason, an agent empowered with a special power of attorney ("SPA") to sell the same. When Leater was ready to pay ae scheduled, Brad called, directing Lester to pay directly to him. On learning of this, Jason, Brad's agent, told Lester to pay through hin as his SPA provided and to protect his connission. Faced with two claimants, Lester consigned the payment in court. Brad protested, contending that the consignation is ineffecti Since no tender of paysent was made co him. Is he correct? A.No, when an agent is employed, the owner of the property sold vaives his right to demand payment directly to himsel?. B.No, since consignation without tender of payment is allowed in the face of the conflicting clains on the plaintifs. €. Yes, since Lester made no announcement of the tender. Dives, a tender of payment is required for a valid consignation. 3. Lester and Jason both undertook a contract to deliver to Brad in Manila a boat docked in Subic. Before they could deliver the boat sank in a storm, The contyact provides suitous event shall not exempt Lester and Jason from their obligation. Owing to the loss of the motor boat, such obligation is deemed converted into one of indemnity for damages. Is the liability of ester and Jason joint or solidary? A.Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are entitled B. Solidary o joint upon the discretion of Brad. Cl Solidary since Lester and Jason fsiled to perform their obligation to deliver the motor bo: 0, Joint since the conversion of their liability to one of indemnity for damages mace it joint. 4.Marites oved Beshiecakes Phpl, 000,000.00 due on 01 october 20X0 but failed to pay her on due date. Beshiecakes sent a demand letter to Marites giving her § days from receipt within which to pay. Two days after ceceipt of the letter, Marites personally offered to pay Beshiecakes in manager's check but the latter refused to accept the same. The 5 days lapsed. May Marites’ obligation be considered extinguished? A. Yes, since Beshiecakes’ refusal of the manager's check, which is presumed funded, anounts to a satisfaction of the obligation. BL No, since tender of payment even in cash, S€ eefueed, wil not discharge the obligation without proper consighation i, Bae then Winc¥iven:iiendiened wnumenit: of ite ict encom’ dane:D. No, since a nanager’s check is not considered legal tender in the thilippines.S. Marites borreved money from a bank, secured by a mortgage on the Land of Beshiecakes, her close friend, then the loan matured, Beshiecates offered to pay the bank but it refused Since Beshiecakes yas not the borrcver. Is the bank’= action correct? A. Yes, since Marites, the true borrower, did not give her content ta Eeshiecakes’ cffer to pay. B. No, since anybody can discharge Marites’ obligation to her benefic. C. Mo, since Eeshiecakes, the ouner of the collateral, has an interest in the payment of the obligation. D. Yes, since it yas Marites who has an ebligation te the bank. 6. Rain and Brad met in SM Manila for negotiations regarding the sale of his very own Maserati Levante (Luxury SU). Brad, who a registered vorer of Taguig City, agreed to buy the Luxury SUY from Rain, who hails from Fasay City, by tendering Php5,000,000. Curing a meeting at Brad’s principal place of business’ in quezon City, it was agreed delivery will be therein on the Brad’s birthday. On the agreed date of delivery, Brac, who wae at EDSA Shangri-la Hotel in Mandaluyong City, called Rain on his freshly unboxed iPnone 12 to demand delivery of the said Luxury SUV. Rain answered and set out to comply, on his way to the pazking lot, he bumped into Brad. They shared a laugh, then Fain handed brad the Keys to the Maserati Levante and left to book a Grab. Given the cizcunstancee, dn what city will delivery of tae SUV extinguish Rain's obligation? A. Mandaluyong + Pasay + Manila = Quezon J. tester is bound to deliver a cake to Marites for her 21+ birthday, The obligation was perfected on January 01, 20x0. It became due on June 20, 200 but Lester failed deliver. Because of last night's non-stop partying, Marites realized ‘the non-compliance of Lester when she woke up in the afternoon on duly, 01, 2050. However, she only communicated the extrajudicial demand cn duly 31, 20X0. Lester delivered the cake on August 01, 20%0. In computing damages, if any, at (hat date should the time compenent be counted from? A. uly OL, 20x0 B. uly 31, 20x0 c. gune 30, 20x0 D. Ne damages are due 8. D owes C the following debts: Php6,000.00 due on January 1+ Php6,000.00 due on January 15; Php6, 000.00 due on January 317 Php6,000.00 due on February 15; Php6,000.00 due cn February 287 and Phpé,000.00 due on March 15. All the debts are unsecured except the one due on February 22. The parties stipulated that C may demand payment on or before the due date of each debt. Assume that today is February 16. D, however, has not yet paid any of the debts. He has in possession of Fhp6, 000.00 which he interds te pay to C. A.D may apply the payment to the debt due on February because it 4 the mest burdensome to hin, B.D may apply the paynent to any of the debts which are already due. D may not apply the paynent to any of the four debi that have becone due as of today, February Le D may apply the payment to all of the debts that have becone due as of today, February 1é, proportionately at Php1, 500.00 each.10 a. hich of the following is an indivisible obligaticn? A. To give a rendition tonight of Eric Clapton's “Wonderful Tonight" in a concext at the Philippine Arena. 8.70 construct a pavement measuring 2 meters side and 10 meters long, To lecture for 5 Saturdays in a tax sentner D. To pay a loan obligation of Phpi00,000.00 in 10 equal monthly instaliments. Beshiecakes stole the carabao of Marites. Beshiecakes was arrested, tried in court and convicted. Aside from being sentenced toa prison term, Seshiecakes vas also ordered by the court to return the carabao. However, the carabao died before Beshiecales could deliver it to Marites. A. Bechiecakes as not liable to Marites if the cause of the death of the carabaa is « fortuitous event. B. Acchicaakes 2 liable to Mariter only 1f the eavabso aiad because of Beshlocakas” fault. C. Beshivcakes is liable to Marites whavever may be the cause of the death of the caratao. E. Beskiccakes has no Liability to Marites whatever may be the cause of death of the carabao because his obligation to return the carabao was due to an order of the court and mutually agreed upon. contracts (10) Which of the following contracts of sale is void? A, Sale of Brad's car by Lester, a person stranger to Sead, without Bred’ s consent or authority B. Gale of Brad’s building by Lester, Brad's agent, whose authority is not reduced into writing. ©. Sale of Brad's car by Lester, Brad's agent, whose authority is not veduced into weiting D, Sale of Brad's piece of land by lester, Brad's ayent, shose authority is not reduced into writing brad orally offered to sell his two-hectare rice field to Lester for Phpi0,000,000.00, The offer was likewise orally accepted. By agreement, the land vas to be delivered (througa execution of a notarized Deed of Sale) and the price was to be paid exactly one-month fron their oral agreement. hich statement is most accurate? A.If Brad refused to deliver the land, Lester may successfully sue for falgillment of the obligation even if he has not tendered payment of the purchase price B. The contract between the parties is void and cannot be the source or rights nor obligations. ©. The contract between the parties is subject to ratification by the parties. D.If Brad vetuses to deliver the land on the agreed date dospite payment by Lester, the latter may not successfully sue Brad because the contract is oral. «Brad, without the authority of Lester, onner of a specialized S-Watke Turbo Levo mountain bike, sold the same bike in his (Brad’s) name to Jason. The contract between Jason and Brad A. Reset: B. Void because of the absence of consent from the omer, Lecter C1 tinanforonable bacsnse Brad had no authority but he wold the bike in the nane of lester, the owner: D. Valid becouse a1] of the essential req Able because tha contract caused lesion to Jason, ites of a contract are presai4. Lester entered into @ contract to sell with Jason, undertaking to convey to the latter one of the five pieces of land he owns for the price of Phpi0,000,000.00. Later, the parties could not agres which of five lots he ouned Lester undertoak to sell to Jason. What is the status of the contract? A, Reaciaaiale BL void C1 Unentoxesable 1D, Voidapie, Consider the following: statement 1, Where the illegal contract is a criminal offense, the innocent party shall be Eound to comply with his promise if he has not yet given anything and if he had given, he may not claim or recover for its return; Statement II. Where the Lllegal contract is not a criminal offense, the innocent party may denand the return or recover what he has given without any obligation to comply with his promise; and, statement III, when money is paid or property delivered for an illegal purpose, the contract may be repudiaced by one of the parties before the puIpose has been accomplished or before any danage has been caused to a third person, and said party may be alloved to recover the money or property thus delivered. BLL are true, ALL are false. + Only one is true, only one is false. 6. Lester posted on Facebook an invitation to bid for his specific house and lot at a floor price of Phpl0, 000,000 Brad send a private message to Lester to tender his Did at a grossly inadequate price of Fhp200,000. Lester promptly rejected the bid. Thereafter, Brad personally went to Lester and told nim = hear:-oreaking story. After hearing the series of unfortunate events endured by Brad, Lester undertook to transfer to Brad all existing rights upon the house and lot Riso, Brad will become the AFAR and Tax Reviewer for Pinnacle OFC for as long as he (Brad) wants. The agreement is sealed with a handshake. Thereafter, Brad made a public Facebook post containing a picture of the two shaking hands and the caption saying “Thank you.” This post had S00k likes and ghares. what is the statue of the contract? A. Voldable B. Rescissible ¢. void D. Unenforceable J. Lester sent Jason a letter whevein the former offered to sell his Specialized S-Works Turbo tevo mountain bike to the latter for Phpi,000,000.00. dasen signified his interest in buying ‘the same. In Lester's reply, he gave Jason two weeks to raise the amount. After one week, Lester raised the price to Fhp2,000,000.00. can Jason, having already expressed his intetest to buy, conpel Lester to accept the Php 1, 000,000.00 e originally offered ana deliver the bike to him? A. Yes, since there was already offer and acceptance B. Yes, because Lester cannot change his offer without the consent of Jason. ©. Yes, because Lester cannot withdraw the offer within two weeks as he is under estoppel. D.No, Because there was no acceptance yet of the offer2. DOM, a very dirty old man, found the profile of @ on social nedia. After a slew of proposals, W, @ young vonan in her 20s, finally met an offer she could not refse, She agreed to Live in one of DOM's lumary condos in the city and tend to Ris carnal needs whenever he wae there, In exehange, DOM Promised to give Wa monthly allowance of PhpS00,000, This Sxrangenent vas to continue dntil ene reaches the age of 20, thereupon the agreement becomes functus officio. at this time, both MW are single and without any impediment to marry. The arrangenent was good while it lasted. Hovever after 3 years, M found a younger woman, X, offered her better terns, and suddenly stopped giving the stipulated allovance to W (see: ghosting). Which statement de true given the circumstances? A. w can denand the continuation of che monthly allowance fron Dow pursuant to their agreement. B. Dox can demand the return of the allowance that he had given to W for the past 3 years. . There is no remedy, and both DOH and W will be criminally prosecuted. D. The agceenent between DOM and W is against morals but does 9, Consider the following: statement I. If at the tine of making the affer or acceptance one cf the parzies was insane, the resulting contract is voidable; Statement II. If before the acceptance is conveyed to the offeror, either of the parties becomes insane, the resulting contract is void; and, Statenent III, If after the acceptance is conveyed to the offeror, either of the parties becenes insane, the resulting contract is valid. ALL are true B, All are false. ©. Only tke are true. D. Only two are false. 10. On 01 April 20x0, Brad offered to sell his only Specialized S-Works Turbo Levo mountain bike to Lester for Php1,000, 000.00. Lester accepted the offer by mailing his Letter of acceptance on 10 sune 20X0. However, on 12 June 20X0, Lester revoked his letter of acceptance and mailed his letter of revocation cn the same date, Brad received the letter of acceptance on 14 June 20K0 and the letter of revocation on 18 June 20x0. A. The contract was perfected on 14 april 2080 when Brad received laster’a latter of acceptance B, The contract was not pertected. ©. The contract was perfected on 10 April 20x0 when Lester sent his letter of acceptance, D. The perfection of the contract retroacts to 01 April 2020 when the offer was made. TIT. sale: m 1. Brad ordered 50,000 places of bute from Lester at Phpé0.00 per piece. Lester delivered 60,000 pieces of buko. What are the rights and obligations of Brad? A. Brad can cancel the whole transaction since Lester violated the terms of their agreement. B. Brad can accept all 60,000 pieces of Buko and pay Lester at Php40.00 per piece c. Brad can accept all 6,000 apples and pay a lesser price for the 1,000 exceso apples D, Brad can keep the 6,000 apples without paying for the 1,000 excess since Lester delivered then anyway.Lester oxne a car which he knows hae a hidden crack in the engine. Despite this, Lester still sold it to Jason without informing the latter about the crack. Furthermore, the deed of sale expressly stipulated that Lester was not liable for hidden defects. Dose Jasoa Have the right to dexand from Lester a reimbursement of what he spent to repair the engine plus canagee? Yes, Lester is liable whether or not he wae aware of the hidden defect. B. Yes, Lester knew of the defect but acted in bad faith in not disclosing the fact to Jascn. €. No, because Jason is in estoppel, because he did act issue 2 demand to Lester prior to having the engine reraired D.No, because Jason expressly waived the warranty against hidden defects. + 9n 06 April 20X0, Lester obliged hinself to deliver to Jason 1000 cavans of rice on the last day of the month. on 01 May 20X0, Jason orally demanded for the delivery of 1000 cavane of rice but Lester failed to comply. The next day, a flood damaged the 5000 cavans of rice stored in the warehouse of Lester and from which he intended to get 1000 cavans of rice for delivery to Jason. Consider the following: Statement I. Lester's obligation to deliver was not extinguished because of the nature of the goods to be delivered; Statement II. Lester is Liable for danages due to delay; and, Statenent TIT. Lester’s obligation to deliver was extinguished because the cause of the loss was a fortuitous event. A. All are true 2 Only T and - Only I and I? are true. . Only TZ and 321 are true. Brad ordered from Lester Company, a sportavear manufactures 20 dozens of jackets and Jogging pants especially styled and designed unde: Brad's specification. This was not the type of sportswear normally manufactured by Lester Company. The price agreed upon by the parties wae Fhp500,000.00. Thezeafter, Brad refused to accept the articles. Consider the following: Statenent I. Brad cannot be compelled to accept because the agreenent is not in writing and is thus unenforceable; Statenent II, The contract is taken out ef the ambit of the statute of frauds because there has been partial performances and, Statement II, Brad can be made liable for interest /danages due to delay the performing obligations. ROALL ave true, BLALL ae falae. €. only twe are true. D. Only tuo are false. -Marites sold a parcel of land separately to the following jexsons: on 01 July 20XD, to Brad, in a public document; on 05 July 20x0 in a private document to Lester, who took physical possession of the land; and on 09 July 20X0, to Jason, who registered the sale with the Register of Deeds. Neither Brad, Lester nor Jason was aware of the sele made to the other buyers. tho is the cuner of the parcel cf land? A. Bead, because he waa the firat parchaser. Lester, because he tock physical possession + Jason, because he registered the sale. Marites, because the multiple sales ne made rendered each sale a void contract.6, Lester, the omer of a rent-a-car business, Leased one of nls care to Jagon for one month. on the day of the expiration of he lease and nile Jazon vas etill in possessicn of the car, Jason offered to buy the car from Lester for Php2, 000,000.00. Relieving the price to be a good one, Lester readily accepted Jason's offer and then and there executed a deed of absolute sale in favor of Jason who immediately paid the price in cash, ‘Thereafter, Jason deove avay from place of Lester, A, The delivery of the car by Lester to Jason is by constitutum possessorium. B. The delivery of the car by Lester to Jason is by traditio longa mans. ©. The delivery of the car by Lester to Jaton is by traditio previ mans. D. There was no valid delivery because Jason should have turned over the possession of the car to Lester upon the expiration of the lease so that Lester could make the proper delivery to him upon the execution of the contract, of sale Brad, Lester and Jason are co-omers of an undivided parcel of land. Brad sold his 1/2 interest to Jason in a deed of absolute sale. Which is correct? A Lester may exercise the right of redempticn on sold by Brad to Jason. B. Lester cannot exercise the right of redexption. C. The sale made by Brad to dason is void as his interest i nerely inchoate. D, Lester may redeem oaly of the interest sold by Brad to Jascn. e interest IV. Credit Transactions (4) 1. Bead borrowed Phpl,000,000.00 from Lester, the debt being payacle in © months, To secuse the dept, ‘sraa promises to pledge his ring within 2 weeks. Two weeks had already lapsed bur Brad had not yet constituted the pledge. Consider the following: Statement I: Lester may denand the constitution of the pledges Statement Il: Lester may not demand inmediate payment of the debt; and, Statement IIT. lester will be entitled to danages/interest on the Fhpl, 000,000.00 loan due to failure of Brad to perform his obligation to constitute the security. A 5 ©. Only two are true. D. Only two ate false. Lester owes Brad Php$00,000.00 and as security, Lester pledged nis dianond ring. tester failed to pay, Brad foreclosed and got Php350,000.00. Consider the following: Statement I, Lester cannot vecover deficiency if stipulated, Statement 32. Brad can be compelled to pay the deficiencys and, Statenent III, Lester must vaive the deficiency, unless stipulated otherwise. Which ave true? A. ALL 8. None ©. only one D. Only tuo3. Lester mortgaged his land worth Php$,00),000,00 in favor of Brad to secure a debt of Phré,000,000.00. lester sold the land to Jason. Consider the following: Statement I. On due date, Brad should denand payment of the Phpé,000, 00.00 fron Lester, and if Lester fails to pay, Brad may foreclose on the moxtgager and, Statement II, Brad may choose 20 collect Php§, 000,000.00 from Jason, and if Jason pays Brad, Jason can go after Lester for reinbursenent. which is/are true? I only 8. 11 only ¢. Neither D. Both 4, Lester borrows Php60,000,000.00 from Brad. Lester executes a deed of assignnent by way of security over the shares of stock in favor of Brad in order to secure payment of the loan. It stipulated that upon paynent of the loan by Lester, Brad will re-convey the shares of stock to Lester. Consider the following: Statement I. On due date, if Lester tails to pay, the shares can renain with Brad as the omer only if the parties agree to o novation of the original agreements) and, Statewent II. On due date, if Lester fails to pay, Brad must foreclose upon the shares to avoid pactum conmissoriua because this is a pledge. which is/are true? A. 1 only 2. ir only c D, + Neither Both V. Negotiable Instruments (3) 1. Consider the following: Statenent 1: Every transfer of @ hegotiahle instrument ia negotiation? Statenent IT: Forgery of the payee’: signature destroye negotiability of the instrument; and, Statement ITI: Absence or failure of consideration is a defense against a Holder in Due Course. As Only two are true B. Only two are false Rll are true 2. All aze false 2. P sold to M 10 grams of sham waren PhpS,000.00. Ae he had no money at the tine of the sale, M wrote a promissory note promising to pay P or his order PopS,000.00. P then indorsed the note to X (eho did not know about the shabu), and x to Y. Unable to collect from P, ¥ then sued X on the note. x set up the defense of illegality of consideration. Is he correct? A. No, since X, a general indorser, warrants that the note is valid and subsisting. B. Yes, since a void contract does not give rise to any right nor can it be the source of any obligation. Cc. Yes, since the note was born of an illegal consideration which is a real defense. D.No, since X, being a subsequent indorser in good faith, cones within the ambit shell principle. x Assues promissory note to B which is successively indorsed to C, 0, Zand £, sho de the current holder. F prscente the PN to X who dishonors it. F, the helder, sends a notice of Aishonor only so D, therefore, B, C and E are discharged. Consider the following: 1. D can also send notices to B and to hold them liable; IT. If D sends the notices B and ¢, they also becowe Liable to Fr; Ir. If D sends the notice to E, it has no effect on the discharge of fy IV. If B sends the notices to B, ¢ and D, they ali become Liable to F. Which are ALT, If 6 17 B.3I, Tr @ coi, Tt & IVBe he Be EeVI. Batas Panbanea Blg. 22 (2) 1. Consider the following: Statement I. What B.P. 22 punishes is the issuance of a bouncing check and the purpose for which the check was {equeay Statenent 11. A corporate check requires to (2) signatories - If said check was allegedly iesued bearing only one (1) signature and was subsequently dishonored, only the person who actually signed will be liable for B.P. 227 and, Statement III: The rule that there is only one offense when the offender 1s moved By one criminal intent cannot apply to B.P. A. Only one is true B. Only one is false G. All are tree DL ALL ate false 2. Consider the folloving: Statement I. It shall not be the duty of the dravee of any check, when refusing to pay the sane to the holder thereof upon presentment, to cause to be written, printed, or stanped in plain language thereon, of attached thereto, the reasen for drawee’s dishonor or refusal to pay the same; Statement II: A check was issued to a kidnapper payment ior ransom. If the check was thereafter dishonored gue te insufficient funds, the drawer can be made liable for violation of B.P. 227 and, Statenent III: The presumption of knowledge of insufficiency of funds or credit does net Lis When the check is presented after 90 days from the date of the check. A. only one is true B. Only one is fais. CL ALL are true D. All axe false VIZ. Partnerships (20) i. tester and Brad are partners. on 15 Jenuary 20x) when the total obligation of the partnership totals Php80,000.00, Jason was admitved ae a new industrial paztner. at the time of Jason’s admission, the partnership creditors were warives for rhpS0,000.00 and x2 for Php20,000.00. after 15 January 20X0, the partnership borrowed from Oks, Php20,000.00 and Php40,000.00 from Perfect. on 15 Jane 20X0, the partnership becomes insolvent leaving obligations amounting to Php30,000.00. Consider the following: Statenent 7. After partnership assets have been exhausted, all partners, including industrial ones are liable pro rate fer the obligations of the partnership; Statement 17. Marites and NI cannot go after the separate properties of Jasons and, Statenent III. Oke and Perfect can go after the separate properties of all partners. R. Only one is true B. only one is false C. ALL are true D. All are false2.tn 20K0, Lester, Marites, NJ, Oks, and Papi formed a partnership. Lester, Marites and NJ were capitalist partners tho contributed Php500,000.00 each, while Oks, a limited partner, contributed Phpl,000,000.00. Papi joined as an industrial partner, contributing only his services. The Articles of Partnership, registered with the Securities and Exchange Commission, designated Lester and Oks as managing partners; Lester was liable only to the extent of his capital contribution? and Papi was not liable for losses. In 20X1, the partnership earned a net profit of Php800,000.00. In the sane year, Papi engaged in a different business with the consent of all the partners. However, in 20X2, the partnership incurred a net loss of Fhp$00,000.00, In 20K3, the partners dissolved the partnership. The proceeds of the sale of Partnership assets were insufficient to settle its obligation. After liquidation, the partnership had an unpaid Liability of Php300,000.000. consider the follewing: = Resuning the share of Papi in the profit of 20x1 amounted to Php100,000.00, then the share of Oks should be Php175,000.007 IZ. In'20X2, the share of Oks in the net loss of Php500,000.00 should be Php125,000.00; and, IIT. After all the assets of the partnership are exhausted, the partnership creditors can hold all partners, except Oks, Liable for the remaining Php300,000.00. Only one is true Only one is false ALL are true ALL are false 3. Evian company, a partnership engaged in the water distribution business, is composed of Lizette, Krishna, Mikah and Veronica. One day, Lizette was, as she was running late, driving the firm's delivery truck beyond the speed limit so that she could deliver to the customers on tims. As a result, she rammed into and caused extensive damage upon the parked car of Armaine. From whom can Armaine claim damages?? A.armaine can claim fron Lizette, mrishna, mitah, Veronica and the Evian Conpany as liability is solidary. B.Armaine can clain fron Lizette, Krishna, ith, Veronica and the Evian Conpany as liability is joint C-Armaine can only claim from Lizette as liability for danages is personal. D.armaine can claim from Lizette and Evian Company as Liability for danages is solidary. 4. Lizette, Ronnel and Keesia formed a partnership engaged in the appliance business. Lizette and Ronnel were general partners, while Keesia was a Limited partner. Later, Ronnel and Keesia got married. Soon after, Lizette sold her interest to Ronnel. Given the foregoing, is the partnership dissolved? A. Yes, when Ronnel acquired the interest of Ligette, it became 2 sole proprietorship, meaning the partrership has been dissolved. B. No, the marriage of Ronnel and Keesia will not dissolve the partnership, unless decreed by a court. Como, the aale of Lizette’s interest to Fennel will not Gissolve the partnership because spouses may enter into particular partnership. D. Yes, the marriage of Ronnet and Keesla, and the sale of Lizette’s ntezest to Ronnel converted the partnership inte a new universal parte:5.M, %, ¥ and 2 organized a general partnership with W and ¥ as ihdustrial partners and ¥ and Z as capitalist partners. ¥ contributed PhpS00,000.00 and 2 contributed Php200, 000.00 to the conon fund. By 2 unanimeus vote of the partners, i and X were appointed managing partners, without specification of their duties and povers. A applied as secretary and & applisa as accountant of the partnership. The hiring of A was decided upon by W and X but was opposed by ¥ and Z. Whose decision shalt prevail? A, The decision of 11 and x shall prevail because the hiring is an act of management and as managers they can do so. B.that of Y and 2 shall prevail because they are the capitalist partners. C. The decioicn of Y and 2 kecause they have the controlling interest D. The decision of W and X because it is an act of ownership. 5.) %, Y and Z organized a general partnership with and x as Andusteial partner: and Y and 2 as capitalist partners. ¥ contributed Php500,000.00 and Z conteibured Fnp200, 000.00 to the conmon fund. By a unanimous vote of the partners, W and X were appointed managing partners, without specification of their duties ang povers. A applied as secretary and 8 applied as accountant of the partnership. Suppose the hiring of B was decided upon by @ and Z, but was opposed by X and ¥, whose decisien shall prevail? A. The decision of W and 2 because W is the managing partner and the hiring is an act of administration. B.The decigion of X and Y because in case of tie in the decision of managing partners, that of the controlling interest shall prevail. That of W and Z becaues Z is alec o capitalist partner. iene of the decision because of the statement of equal rights J. veronica, Gian, Gellie and Janeth axe partners in voor Company, a dealer of car spare parts. Veronica, Gian and Gellie | invested —PhpS00,000.00,Php200,000.00 and Php300, 000.00 respectively. Janeth is an industrial partner who manages the partnership affairs. The partners have Stipulated that Veronica ahall be exerpt from Liability to third persons. At the end of chree years, the assets of the partnership have duindled to Php220,000.00 while its Liabilities to third persons have a balance of Php340,000.00. How much ultimately will be the share of each partner after payment to third persons and the settlenent among the A. Veronica, noney Gian, Php4e,000.007 Gellie, Php72, 009.002 and Janeth, none. B. Veronica, none; Gian, Gellie and Yaneth, Php40, 000.00 each. ©. Veronica, Gian, Gellie and Janeth, Php30,000.00 each. D. Veronica, Fhp60,000.00; Sian, Php24,000.00; Gellie, Php36,000.00; and Janeth, none.@.8, the managing partner of AAA Company, vas driving the delivery truck of the firm wnen he rammed it into an electric post resulting in the damages to the vehicle amounting to Paps0,000.09. Ts make up far the accident, A vorked long hours for the firm and was able to increase its sales fron PhP5,000, 000,00 to Php15,000, 000.00. Which is correct? AoA Will no longer be Jiable for damages to AAA Company because he was able to generate unusual revenues for the firm through his extraordinary efforts B.A and AAA Company Will share equally in the damages of PhpS0, 000.00. .A will still be Liable to the fim for damages but the amount may be equitably reduced by the court since he was able to generate unusual profits for the firm through his extracedinary efforts. D, a’s obligation to the firm for danages will be extinguished by compensation since AAA Conpany is Liable to him for the extracrdinary efforts he extend to increase its sales. 9. Ay Papi! Enterprise, a partnership engaged in the trading of video films 1s conposed of the following partnera with their capital contributions: A, Php20,000.00 B, Pap40,000.007 cy PhpS0,000.007 D, _PhpS0,000.00; &, Php80,000.00; Fy Php300,000.007 and G, Php700,000.00. Theze wae no agreenent among the partners as to who’ shall be the anager. Which of the following is correct? A. The controlling partner shall be the manager of the partnership B. The partners will have to agree as te who shall be the manager C.ALL of the partners can be the managers D. Two of the partners are only alloved to be managers of the partnership 10. -R, Band © (industrial) are partners who contributed ‘squally to the capital, X, without the knowledge of the death Of C contracted with A who also was waaware of the death of ©. The Liability te X% is Php90,000.00, and he can collect after exhausting partnership ‘assets in the amount of, PRpé0,000.00 A. Php20, 000.00 from any one of A, Band c. B. Ehpi5, 000.00 each form A and B. . Phpl0,000.00 from each of A and B and Phpl0,000.00 from cre estate, The partners are not liable beyond their capital contribution because the partnership was already dissolved at the time of liability. VEIT. corporations (27) 1.AAA Corporaticn @ wholly owed subsidiary of XYZ ‘seperation. To support the busines: of AAA Corporation, x2 Corporation agreed to give its corporate guarantee to the joan of AAA Corporation, What is required so that the corperate guarantee will be valid? A. It would require both the approval of the Board of Directors and the stockholders on record B. it only requixes the approval of the Board of Directors of XYZ Coxperation ‘The Articles of Incorporation must provide such power and be approved by the Board of Directors. D, Providing comporate guarantee to ancther corporation is a necessary exercise of peer of a corporation