REVIEWER IN OBLIGSTION AND CONTRACTS 1. Three of the following may be valid objects of a contract, except: A. All that are within the commerce of man B. All services which are not contrary to law C. Impossible things or services D. All rights that are transmissible 2. A contract executed by two t wo or more parties and one of the parties is not capable of giving consent. The contract is: A. Voidable C. Void B. Rescissible D. Unenforceable 8
3. Three of the following contracts are void. Which one is not? A. Oral contact of partnership of three partners and capital contribution is more than P3, 000 in cash B. Written contract contemplating impossible services C. Oral contract of partnership where r eal estate is contributed as capital D. Agent’s authority to sell property is given orally 4. Three of the following are option money. What is the earnest money? A. Given when contract of sale is perfected B. Given when there is no contract of sale C. Given to bind the offer or in unilateral promise to sell or buy D. Given as a separate consideration from purchase price 5. The stipulation in a contract to the effect that the debtor should remain as a servant in t he house and in the service of her creditor so long as she had not paid her debt, is void because it is: A. contrary to good customs C. contrary to law and morality B. business advertisement of things for sale D. answer not given 6. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to contribute the t he contract. Which of the following constitutes an offe r? A. an offer made through an agent B. business advertisement of things for sale C. advertisements for bidders D. answer not given 7. When one of the parties to a contract is compelled to give his co nsent by a reasonable and wellgrounded fear of an imminent and grave evil upon his person or property, or upon the per son or property of his spouse, descendants or ascendants, there is A. Violence C. undue influence B. Intimidation D. answer not given 8. Simulation of a contract may be absolute or re lative. It is relative when: A. the parties do not intent to be bound at all; B. the contract is void C. the parties conceal their true agreement D. answers not given 9. The proper remedy is annulment of contract and not reformation when: A. miske, fraud, inequitable conduct, or accident has prevente d a meeting of the minds of t he parties; B. a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement; C. one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed the fact from the former; D. answer not given 10. The action to annul a viodable contract, such a contract where one of the parties is incapable of giving consent to the contract is e xtinguished by;
A. novation B. rescission
C. rescission D. answer not given
11. Mr. Marcelo Cardenas orders for his workers 1,000 pieces of T-Shirts rangings in size from small to large from the Lapulapu Garments Mfg. Corp. The specified sizes, although not then available, are manufactured by said corporation and consigned to its sales outlets regularly. The contract entered into by Me. Cardenas with the Lapulapu Garment Mfg. Corp. is a: A. contract for a pieces of work C. a contract of sale B. Contract subject to a resolutory condition D. Answer Answer not given 12. Choose the contracts which are voidable A. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them 9
B. Those where the consent is vitiated by m istake, violence, intimidation, undue influence or fraud C. Those whose object is outside the commerce of man D. Those where both parties are incapable of giving consent to a contract 13. A contract is in the stage of conceptions when: A. There is meeting of the minds C. The parties come to an agreement B. Negotiations are in progress D. The contract is perfected 14. Connie transferred to Violeta a parcel of land for the price of P100,000; 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? A. Lease contract C. Obligation to sell B. Contract of sale D. Barter 15. Contracts entered into in a state of drunkenness or during a hypnotic spell are: A. Void C. Voidable B. Valid D. Legal
16. A, B and C solidarily owe X and Y P30, 000. X rem itted the entire obligation in favour of A. The effect is: A. The obligation is not extinguished until A collects from B and C B. The obligation is not yet extinguished until Y is paid by X of Y’s share of the credit C. A cannot recover from B and C because remission in his favour extend to the benefit of B and C D. A can recover from B and C their respective share of the debt 17. When the debtor binds himself to pay when means permit him to do so, the obligation is: A. Conditional C. Simple B. Pure D. With a period 18. When A voluntarily takes charge of the neglected business of B without the latter’s authority where reimbursement must be made for necessary and useful expenses, there is a: A. Quasi-delict C. Negotiorum gestio B. Quasi-contract D. Solutio indebiti 19. Mr. Gamboa sold his car for P200,000 to Mr. Ramos. There was no fixed date for the performance of the obligation of both parties. The obligation of Mr. Gamboa as vendor is: A. To wait for Mr. Ramos to pay P20 0,000 and deliver the car B. To deliver the car immediately as this is a perfected contract C. To deliver the car immediately because the seller’s obligation is pure D. To rescind the contract because no time or date is fixed for the performance of their respective obligations 20. Which of the following is not void ab initio? A. That whose object is outside the commerce of men B. That whose object did not exist at the time of transactions C. That which contemplates an impossible service D. That which is undertakes in fraud of creditors
21. 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 delay D. When the thing lost is specific 22. X obligated himself to pay Y the amount of P30 , 000 30 days after May 31, 1993 plus a penalty of P3, 000 if he fails to pay the obligation on the due date. After demand for payment by Y, X offered to pay on July 30, 1993. Y can demand from X: A. P30, 000 plus P3, 000 legal interest B. P30, 000 plus legal interest C. P30, 000 plus P3, 000 11
D. P30, 000 plus P3, 000 plus legal interest plus damages 23. If the obligation of the debtor is “I will pay you my debt after I have arrived from abroad”, this is A. Unenforceable C. Void B. With a period D. Conditional 24. A obliged himself to give B a c ar if B places among the top to p ten in the CPA Board Exam. Subsequently, they agreed that A w ill give B the car if B merely passes the CPA Board. This is an example of: A. Mixed novation C. implied novation B. Real novation D. Personal novation 25. It is a mode of ex tinguishing an obligation when two persons in their own right are c reditors of each other: A. Reformation C. Compensation B. Novation D. Confusion 26. It is a mode of ex tinguishing an obligation when two persons in their own right are creditors of each other. A. Confusion C. Compensation B. Reformation D. Novation 27. A condition with, if imposed on an obligation will be disregarded and will therefore make the obligation immediately demandable A. If Juan commits suicide B. If Juan passes that bar examination C. If Juan kills Pedro D. If Juan will not rise from the dead 28. “A sells to B lot and house in the city if A decides to tr ansfer and live in the countryside” is an example of: A. Mixed conditions C. Casual condition B. Potestrative condition D. Resolutory condition 29. This special form of payment in the conveyance of the o wnership of a thing as accepted equivalent of performance: A. Dacion in payment or dacion en pago B. Assignment of property or cession en pago C. Application of payment D. Tender of payment and consignation 30. When two persons in their own right ar e reciprocally creditors and debtors of each ot her and extinguishes both debts to the concurrent amount, what takes place is known as: A. compensation C. confusion or merger B. novation D. remission 31. The following shall produce the effect of payment of debts A. Delivery of check C. Delivery of promissory note B. Tender of Central Bank notes D. answer not given
32. If the creditors to whom tender of payment has been made refuses without just cause to accept it, the debtor shall be released from responsibility: A. assignment of property C. Adjudication or dacion en pago B. consignation of the thing or sum due D. answer not given 12
33. A executes a promissory note in favour B and the promissory note is negot iated by B and subsequently in indorsed in favour of A . The obligation to pay the promissory note is thereby extinguished because there is: A. confusion or merger C. remission B. novation D. answer not given 34. On October 4, 1987, A is indebted to B for P50, 000 for a 20-day period. A proposed to B that X will pay A’s debt and that A will be free from all liabilities. B and X agree to the proposal. On October 25, 1987, X became insolvent. At the time of delegation, X was already insolvent but this was not known to A. The insolvency is not of public knowledge. So B sues A on the ground that it was A who made the proposal that A guaranteed X’s solvency. Decide. A. Is liable because he is presumed to have guaranteed X’s solvency. B. A is not liable because A does not know the insolvency of X at the time of delegation and neither was the insolvency of public knowledge. C. A is liable because he did not ex ercise due diligence in determining the insolvency of X. D. A is liable because X agree agr ee to the proposal to make himself so lidarily liable for the obligation. 35. A and B are joint c reditors mancomunados of X and Y, joint debtors, for a total sum of P9, 000. A owns 1/3 of the credit and B owns 2/3 of it. But X owns 2/5 of the debts and Y owns 3/5 of the debts. In this case: A. B can only collect from X, P5, 400 and from Y P3, 600 B. A can only collect from X, P4, 500 and from Y, P4, 500 C. A can only collect from X, P3,600 and from Y, P5, 400 D. B can only collect from X, P9, 000 and from Y P0 36. X and Y are solidary debtors of A, B, C, and D, joint creditors, to the amount of P8, 000. How much can a collect from X? A. A could recover P4, 000 from X, A, in turn, has to give to B, C and D P1, 000 each B. A could recover P2, 000 only from X C. A could recover P1, 000 only from X D. A could recover P8, 000 from X, A, in turn, has to give to B, C and D 37. Y sold his horse to Z for P50, 000. No payment has yet been made and the sales document does not provide the date of delivery. Before delivery and payment, the horse gave birth to a baby horse. A. Z is entitled to the bay horse which was born after the perfection of the contract B. Y is entitled to the fruit (baby horse) as Z has not paid the price yet C. Y is entitled to the fruit (baby horse) because it was born before his o bligation to deliver the horse D. Z should pay additional amount for the baby horse to be e ntitled to it.
38. When the subject matter of the contract is lost through a fortuitous event, who is liable? A. The debtor C. None of them B. The creditor D. Both creditor and debtor 39. When two persons are reciprocally debtors and creditors, there is A. Consignation C. Compensation B. Merger D. Confusion 40. This is the promissory note. “We promise to pay A, B and C the sum of one hundred eighty thousand (P180, 000) pesos within 60 days. Signed by X, Y and Z.” A. X is obliged to pay A P20, 000 B. X is obliged to pay A P60, 000 C. X is obliged to pay A P180, 000 D. X is obliged to pay A, B and C P180, 000
41. OE is obliged to give OR a 1982 Mitsubishi 4-door sedan Lancer with plate number NBA 123 on September 30, 1989. On October 10, 1989, OE did not yet deliver the car which was totally destroyed by an earthquake on such date. Is OE still liable? A. No. The obligation is extinguished. The specific thing was lost due to fortuitous event and no demand to deliver was made by OR. B. Yes. OE is in legal delay. OR can c laim damages. C. No. Even if OE is already in default, he can plead impossibility of performance. D. Yes. OR can instead demand for another car of equivalent value from OE. 42. In this case, advance payment by the debtor is recoverable. A. If the advance payment is only for interest due. B. If the creditor demanded for the advance payment and the debtor knew it was not yet due. 14
C. If the advance payment is in re ciprocity to the advance payment of the ot her party. D. If the debtor was unaware of the period. 43. When the debtor abandons and assigns all his properties in favour of his creditor for the latter to sell to satisfy his credits, this is: A. Remission C. Dation in payment B. Payment by cession D. Expromission 44. This mode of extinguishments of obligation is when two (2) persons, is their o wn rights are creditors and debtors of each other. A. Merger of confusion C. Compensation B. Condonation or Remission D. Novation 45. A obliges himself to pay X P100,000.00 in 30 days plus a penalty of P20, 000.00. If A falls to pays the obligation in due time, A failed to pay the obligation in 30 days. X can demand from A. A. The principal of P100, 000.00 plus P20, 000 . 00 penalty. B. The principal of P100, 000. 00 plus P20, 000. 00 penalty, plus legal interest damages. C. The principal of P100, 000. 00 plus legal interest. D. The principal of P100, 000.00 plus P20, 000 .00 penalty plus legal interest plus damages. 46. A owes X P50, 000.00 payable on or before June 30, 2205. S who is not a party to the contract and without the consent and against the will of A paid X the P50, 000.00 on o n April 2005 when the prevailing rate interest was 12% per annum. A. S can ask reimbursement from A in the amount of P50, 000. 00 plus 12% interest from April to June 20, 2005. B. S can ask reimbursement from A in the amount of P50, 000. 00 C. S cannot ask reimbursement from A because the payment by S is without the consent and against the will of A. D. S can ask refund from X because the payment by S was against ag ainst the will of A. 47. When an obligation is extinguished because of the passage of time, this is: A. Fulfillment of resolutory condition B. Arrival of a resolutory period C. Prescription D. Rescission 48. When the debtor abandons or transfers all his properties to the creditors so that the creditors may sell the properties and out of the net proceeds the creditors recover their claims this is called” A. Dacion en pago B. Tender of payment and consignation C. Payment of cession D. Remission 49. When the period is “on or before a date”, the debtor had the benefit of the t he period. This benefit is lost and the obligation becomes demandable when: A. The debtor attempts to abscond B. After contracting the obligation, the c reditor suspects the debtor to becoming insolvent C. The guarantee given by the debtor is not acceptable to the creditor. D. Demand by the creditor could be useless.
50. A owes B P10, 000. With consent of both, C pays B P5,000. Now B and C are the creditors of A to the amount of P5, 000 each. e ach. Suppose A has only P5, 000. Which is correct? A. B and C should divide the P5, 000 equally B. C should be preferred C. A may choose who to pay D. B should be preferred 51. X is under obligation to deliver his Toyota car to Y. However, before delivery Z destroys the car. Which one of the following is not corre ct? A. X’s obligation to give his car to Y is extinguished B. X is allowed to recover from Z C. Y has a right to bring action against Z D. X is not obliged to give Y as equivalent value of her car 52. An obligation where only the presentation has been agreed upon but the debtor may render another in substitution is: A. Conjoint obligation C. Simple obligation B. Facultative obligation D. Alternative obligation 53. XYZ, are solidarily liable to A for P30,000 which mature on July 1, 2993. On May 1, 1993, X paid A fro the whole amount of the debt. If on December 1, 1993, X will be reimbursed by Y, the latter will the liable for: A. P10,000 with interest from July 1, 1993 to December 1, 1993 B. P10,000 without interest C. P10,000 with interest from May 1, 1993 to July 1, 1993 D. P10,000 with interest from May 1, 1993 to December 1, 1993 54. A thing is not deemed lost when it: A. perishes B. disappears in such a way its existence is known or it can not be recovered re covered C. goes out of commerce D. deteriorates 55. D is the driver of a passenger bus which is owned and operated by O. While D is driving said buss, it met an accident through his neg ligence where P, a passenger, was injured. D is liable to P for damages which arises from: A. Law C. crime B. quasi-contracts D. quasi-delict 56. A mango tree in the land of O is reclining towards the road. All of a sudden, without a storm or an earthquake or even strong wind, the tree falls hitting a car belonging to Y causing a P20,000 damage. The liability of O to X arises from: A. law D. crime B. quasi-contracts E. quasi-delict C. contrasts 16
57. Ricardo Montejo owes Pablo Mendez P15,000. Upon maturity of the debt, Montejo fails to pay and so Mendez sues him in a complaint. Montejo answers the complaint and before actual hearing. Mendez signed by Montejo to Alfredo Castro, for P10,000.00 because Mendez needs the money badly. Now Castro demands payment from Montejo. In the case at bar, Montejo is: A. not liable to Castro for the amount B. liable only to the extent of P10,000.00 plus cost and interest C. liable for the entire amount of P15,000.00 plus cost and interest. D. Answer not given 58. A promissory note signed by Martiniano and dated March 15, 1991 is worded as follows: “ I promise to pay Juanita the sum of Fifty Thousand Pesos (P50, 000.00) provided that if she should fail in the October, 1991 CPA Examination, she shall re turn to me said amount.” The above note gives rise to an obligation with: A. suspensive condition C. resolutory condition B. casual condition D. answer not given
59. Bertulfo and Claudio promise to deliver a particular car values at P100,000.00 to Manuela on or before September 15, 1991. September15, 1991 came and upon demand by Manuela for delivery from Bertulfo and Claudio, Bertulfo was willing to deliver but C laudio refused to deliver. In the case at bar: A. an action for specific performance will lie against both Bertulfo and Claudio B. Both Bertulfo and Claudio shall be liable for P50,000.00 e ach with damages C. Bertulfo shall be liable for P50,000.00 without damages and Claudio shall be liable for P50,000.00 and damages D. Answer not given 60. Carlito, Alfredo and Francia owed in solidum P15,000.00 to Ricar do as evidenced by a promissory note due on September 30, 1991. The note prescribed on September 30, 1991. On October 10, 1991, Car lito paid Ricardo. In this case, Carlito is: A. entitled to collect P5,000.00 each from Alfredo and Francis B. not entitled to reimbursement from his co-debtors for the shares of the latter; C. entitled to recover from Ricardo D. answer not given 61. Carlo and Cleo are solidary debtors of Cor rina, Luis, Edward and Abelito joint creditors in the amount of P20,000. How much can Corr ina collect from carlo? A. Corrina could collect P2,500 from Carlo B. Corrina could collect P10,000 from Carlo, Corrina is then obliged to give P2,500 each to Luis, Edward and Abelito C. Corrina could collect P5,000 from Carlo D. Corrina could collect the whole P20,000 from Carlo but will in turn give P5,000 each to Luis, Edward and Abelito. 62. P.A.U. sold to R.D.E. the former’s car on April 1, 1992 for P300,000. P.A.U. promised to deliver the car on April 15, 1992 19 92 but R.D.E. did not make any promise as when to pay. A. P.A.U. on April 5, 1992 can demand payment from R.D.E because the obligation is not subject to any condition B. R,D.E. will be obliged to pay only at or after delivery C. P.A.U. cannot demand payment until he delivers the car D. R.D.E. can compel P.A.U.to deliver the car before April 15, 1992 upon payment of the selling price 63. Mr. Debtor owes Mr. Creditor who has two (2) legitimate emancipated children, P50,000 payable on December 31, 1991. A. If Mr. Debtor dies before December 31, 1991, Mr. Creditor cannot collect from the heirs of Mr. Debtor B. If Mr. Debtor dies before December 31, 1991, Mr. Creditor can collect from the heirs of Mr. Debtor C. If Mr. Creditor dies, his two (2) legitimate emancipated children cannot recover from Mr . Debtor his obligation D. If both Mr. Debtor and Mr. Creditor die, the heirs of Mr. Creditors can collect from the heirs of Mr. Debtor
17
64. In an obligation where only one (1) prestation has been agreed upon, but to extinguish ext inguish the obligation the debtor is allowed and does render another substitute, the obligation is A. Facultative obligation C. Alternative obligation B. Simple obligation D. Conjoint obligation 65. In a joint obligation, A, B and C are debtors of joint creditors, D, E and F in the amount of P180,000. A’s obligation is: A. Pay D P60,000 C. Pay D P120,000 B. Pay D, E and F P180,000 D. Pay D P20,000 66. On June 5, 1991, Jose Dizon D izon of Angeles City is obliged to give to Ruben Samia, Jose Dizon’s red crew cab. There was no delivery until June 15, 1991 when the garage of the red crew cab collapsed due to heavy ash and sand spewed by Mt. Pinatubo and the r ed crew cab was totally destroyed. After the crew cab was w as destroyed and lost, is Jose Dizon still liable? A. No. Even if Jose Dizon was already in default, he c ould plead impossibility of performance.
B. Yes. The obligation to deliver the crew cab is changed to pay the equivalent value because Jose Dizon is in legal delay. C. No. because there was no demand by Ruben Samia to deliver the crew cab and the specific object was lost due to fortuitous fo rtuitous event. The obligation is extinguished. D. Yes. Because the contract is perfected. 67. Mr. A Santos signed a letter addressed and delivered to Mr. S. Aguas. The terms of the letter are: An offer to sell a 500 sq. m. lot fort P300,000 An option time up to October 31, 1991 for Mr. S. Aguas to raise the P300,000 Upon payment of the P300,000 Mr. A. Santos will execute and sign aDeed of Sale On October 31, 1991, Mr. A Santos sent a letter to Mr. S. Aguas asking for new price of P350,000 for the 400 sq. m. lot. Can Mr. S. Aguas compel Mr. A Santos S antos to accept and make him sign and exec ute a Deed of Sale? A. No. Mr. S. Aguas did not accept t he offer of Mr. A. Santos. B. Yes. Mr. A. Santos is already stopped by his signed letter and offer. C. Yes. There was actual meeting of the minds. D. Yes. The contract is perfected. 68. If the obligor hinds himself to perform his obligation as soon as “he shall have o btained a loan” from a certain bank, this obligation is: A. With a term C. Suspensive B. Conditional D. Resolutory 69. The P1,000 bills issued by the Central Bank and in circulation are considered: A. Checks C. Legal tender B. Bills of exchange D. Promissory notes 70. One of the following statements is not t rue: A. A creditor is not bound to accept acc ept a check in satisfaction of his demand, because a check even if good when offered, does not meet the requirements of legal tender. B. The obligation of a debtor who had agreed to pay in dollars in a foreign bill of e xchange, shall be discharge in Philippine currency measured at the prevailing rate of exchange at the time the obligation was incurred C. The Philippine peso bills when attempted to be exported, as when carried in excess of that allowed by the CB regulation, may be deemed to have been taken out of domestic circulation as legal tender and thus, treate d as a commodity D. The purchasing power or value of money or currency depends upon, can come into being can be created or brought about by a law enacted by the legislative department of the Government 71. It is one of the essential elements of an obligation: A. A maker or drawer C. A drawee B. An object or prestation d. Money
18 72.
It refers to a joint obligation: A. One in which each debtor is liable for the entire obligation, and each creditor is entitled to demand the whole obligation B. One in which either one of the parties is indispensable and the other is not necessary C. One in which the obligation of one is a resolutory condition of the obligation of the other, the non fulfilment of which entitles the other party to rescind the contract D. One in which each of the debtors is liable only for a proportionate part of the debt and each of the creditor is entitled only for a proportionate part of the credit
73. It presupposes not only that the obligor is able, r eady and willing, but more so, in the act of performing his obligation. A. Promissory note D. Bill of exchange B. Tender of payment D. Obligation to sell
74. It is not a source of liability which we entitle the injured party to damages: A. Culpa, Aquiliana or negligence committed in the performance of a spontaneous act. B. Mora or delay C. Dishonesty, malice or bad faith in the performance of an existing valid obligation D. Contravention of the tenor of the obligation 75. Jesus owes Maria P1,000 on June 30, 1993 Maria owes Jesus P600 due on June 20, 1993 Maria owes Jesus P400 due on June 30, 1993 Maria owes Jose P1,000 due on June 30, 1993 On June 25 1993, Maria cannot pay Jose P1,000 so he assignes to Jose her credit of P1,000 against Jesus without the knowledge of Jesus. On July 2, 1993, Jose tries to collect from Jesus the P1,000. How much can Jose compel Jesus to pay? A. Zero C. P 600 B. P1,000 D. P 400 76. The leviable properties of the debtor are transferred to the creditors to be sold and from the proceeds, the creditors are paid: A. Pledge C. Dacion en pago B. Cession D. Chattel mortgage 77. The obligation is demandable on the date of the o bligation and shall continue to be in force up to the arrival of the day certain: A. Resolutory period B. Suspensive period
C. Indefinite period D. Legal period
78. A< B and C secured a loan from D. The promissory note which evidence the obligation states: “I promise to pay D or order P10,000 P 10,000 payable on demand” (Sgd) A B C . The obligation is: A. Solidary C. Indivisible B. Divisible D. Joint 79. Which one of the following ia not an element of legal compensation? A. Debts to be compensated are due and demandable B. There is controversy or adverse claim over any debts to be compensated C. There are two or more debts of the same kind D. There are two persons who are creditors and debtors of each other. 80. X, Y and Z joint debtors owe o we P18,000 to A, B and C, solidary creditors. How much can B collect from X? A. P 3,000 C. P9,000 B. P18,000 D. P6,000 81. Which of the examples given below can legal compensation take place? 19
A. A owes B P1,000 due on June 30, 1993, B owes A P1,000 due on June 30, 1993 but C has filed an adverse claim against A B. A owes B P1,000 payable October 31, 1993. B owes A P1,000 due on October 31, 1993 C. A owes B P1,000 with C as guarantor, B owes C P1,000 D. A owes B P1,000 payable May 31, 1993, B to deliver to A 2 picula of sugar worth P1,000 each on May 31, 1993. 82. X and Y are solidary debtors of A, B and C, joint cr editors to the amount of P30,000. How much can B collect from X? A. B can collect P30,000 from X, B in turn has to give A and C P10,000 each B. B can collect P10,000 from X C. B can collect P15,000 from X D. B can collect P30,000 from X, X in turn can recover from Y the amount of P15,000 83. ABC are solidary creditors of X fr o P10,000. A makes a will giving the P 10,000 debt to X as legacy. The obligation is extinguished by: A. Confusion of debts C. Remission of debt
B. Novation of debt
D. Payment of debt
84. Which of the following is not a special form of payment? A. Cession C. Consignation B. Application of payment D. Dacion in payment 85. A owes solidary creditors XYZ P10,000. There is remission of the debts when: A. X borrows P10,000 from A B. X waives partially the obligation of P10,000 to A C. Z makes a will giving the P10,000 debt to A as legacy D. Y tells A that instead of paying P10,000, A shall just deliver a ring to Y 86. When the characters of the creditors and the debtor are merged in one and the same person, there is extinguishment of the obligation by: A. Compensation C. Novation B. Merger of rights D. Remission 87. X and Y and Z solidarily owe A, B, C, D, joint creditors P30,000. How much can A collect from X? A. P7,500 only B. P20,000, A in turn has to give P5,000 to B, C and D C. P10,000 A in turn has to give P2,500 each to B, C, and D D. P5,000 only 88. A, B and C solidarily bound themselves to deliver to X a Honda motorcycle. The obligation was not fulfilled through the fault of A. Thereupon, X filed an act ion in court against C and the court awarded P36,000 to X. Which of the following situations is valid? A. If C pays X the P36,000, C can collect from A P26,000 and B P12,000. Later, B can ask for reimbursement from A P12,000 B. X has to collect P12,000 each from A, B, and C to satisfy the court’s award of P36,000 C. If C pays X P36,000, C can collect from B P10,000 and from A P16,000 D. X cannot collect the whole amount of P36,000 from C 89. Diaz is under obligation to give Cruz, at D iaz’ option, a car, a pick up, or a van. 1st Statement: If the car and the pickup were destroyed by Diaz’ own fault and later Diaz communicated to deliver the van, but got lost by a fortuitous event, Diaz should not be held liable. 2nd Statement: If the car and the pickup were destroyed by a fortuitous event and later the van was lost by Diaz’ fault, Diaz should be held liable. A. 1st statement correct, 2nd statement wrong B. 1st statement wrong, 2nd statement correct C. Both statements are correct D. Both statements are wrong 20
90. X owes Y P40,000. With the consent of both parties, Z pays P20,000 which makes Y and Z creditors of X to the amount of P20,000 each. X becomes bankrupt and has only P 20,000 assets left. A. Z should get the P20,000 B. Y and Z divide the P20,000 e qually C. X may choose whom to pay D. Y should get the P20,000
91. When the preferred shares are issued by a corporation with a fixed annual dividend on the face thereof, the effect is: A. The contract of subscription between the corporation and stockholders B. The stockholder is a creditor of the corporation C. The shares of stock become negotiable instruments D. The stockholder is a plain investor who may benefit or suffer with the financial success or failure of the corporation
92. Three of the following corporations are not authorized to issue no-par value shares of stock. Which one is the exception? A. Industrial companies B. Insurance companies C. Trust companies D. Public utilities 93. The corporation has a nine-member board. Two of the board have sold their shares while two others are aboard. To have a quorum, t his number is required. A. Seven C. Three B. Five D. Four 94. 1st Statement: A majority of the directors or trustees of all corporations organized in the Philippines must be citizen of the Philippines, 2nd Statement: any two (2) or more positions may be held concurrently by same person, except that no one shall act as president and secretary or as secretary and treasurer at the same time. A. Both statements are not true B. Only 1st statement is true C. Only 2nd statement is true D. Both statements are true 95. 1st statement: When par value shares are issued above par, the problem or excess is to be considered as part of the legal capital 6 nd
2 statement: Shares issued without par value shall be deemed fully paid and non-assessable and the holder of such shares shall not be liable to the corporation or its creditors in respect thereto. A. Only 1st statement is true B. Only 2nd statement is true C. Both statements are not true D. Both statements are true
