Business Law VSA IRS MCQS Business Law VSA IRS MCQS with Verified Answers.
Part 1: Obligations (VSA-IRS)
1. Unless the law or the stipulations of the
... [Show More] parties require another
standard of care, every person obliged to give something is also
obliged to take care of it with:
a. Extra-ordinary diligence
b. Diligence of a father of a good family
c. Diligence of a good father of a family
d. Good diligence of a father of a family
2. This refers to delay on the part of the creditor.
a. Mora solvendi ex re
b. Compensatio morae
c. Mora solvendi ex personae
d. Mora accipiendi
3. One of the following obligations is not immediately demandable.
a. Pure obligation
b. Obligation with a resolutory condition
c. Obligation with an in diem period
d. Obligation with an ex die period
4. The debtor shall lose the right to make use of the period in the
following cases, except when he:
a. Becomes insolvent
b. Violates any undertaking in consideration of which the creditor
agreed to the period
c. Attempts to abscond
d. Does not furnish any guaranty or security to the creditor
5. A, B, C, and D, joint debtors, are obliged to give V, W, X, Y, and Z,
solidary creditors, P20,000.00.
a. V may collect from B P20,000.00
b. V may collect from B P4,000.00
c. V may collect from B P5,000.00
d. V may collect from B P1,000.00
6. In obligations with a penal clause, the creditor as a rule may recover
from the debtor in case of breach the following:
a. The penalty as agreed upon, plus damages and interest
b. The penalty and damages
c. The penalty and interest
d. Only the penalty
7. B borrowed from XYZ bank P2,000,000.00 payable at the end of 5
years. Before maturity, an extraordinary deflation supervened causing
the value of the debt to rise to P5,000,000.00 on the date of maturity.
On due date, B must pay XYZ bank:
a. P2,000,000.00
b. P5,000,000.00
c. P800,000.00d. P20,000,000.00
8. Consignation alone without any tender of payment is sufcient in the
following cases, except:
a. When the creditor is absent or unknown or does not appear at
the place of payment
b. When the creditor represents the title to the obligation
for collection
c. When without just cause, the creditor refuses to give a receipt
d. When two or more persons claim the same right to collect
9. D owes C P10,000.00 with G as guarantor. C, on the other hand, owes
D, P8,000.00. Both debts are already due but D is insolvent. In this
case:
a. C may collect from G P10,000.00
b. C may collect from G P2,000.00 because a guarantor can
set up compensation as regards what the creditor owes
the principal debtor.
c. C may collect nothing form G because D is insolvent
d. C may collect P8,000.00 form G
10. On July 1, 2015, D obliged himself to give C P50,000.00 if C will
marry X on or before December 31, 2015. The condition of the
obligation is a:
a. Positive condition
b. Negative condition
c. Joint condition
d. Impossible condition
11. D owes C P6,000.00. No date for payment was stipulated by the
parties.
a. C cannot require D to pay because there is no date for payment
b. C can require D to pay at anytime
c. D is not liable to C because the obligation is void there being no
date of payment
d. D is not required to pay unless C goes to court and asks the court
to fx a period for the payment
12. Legal compensation shall not be proper in three of the following
cases. Which is the exception?
a. Commodatum
b. Civil liability arising from a criminal offense
c. Gratuitous support
d. Bank deposit
13. A, B, and C are solidarily liable to X for P30,000.00. A pays X the
whole amount due. C, however, is insolvent.a. A alone will bear the share of C who is insolvent since he (A)
made the payment
b. A can collect from B P10,000.00
c. A can collect from B P15,000.00
d. A can demand a refund of P10,000.00 from X pertaining to C’s
share since C is insolvent
14. D is indebted to C for P20,000.00 which is due on June 10. C
owes D P15,000.00 which is due on June 5. On June 8, C assigned his
credit rights to T. D gave his consent to the assignment but did not
reserve his right to the compensation. On June 10, how much may T
collect from D?
a. P20,000.00
b. P15,000.00
c. P5,000.00
d. Nothing
15. The return of what has been paid by mistake is known as:
a. Solutio indebiti
b. Negotiorum gestio
c. Quasi-delict
d. Natural obligation
16. One of the following obligations is not demandable at once.
Which is it?
a. D to give his car to C. No date was fxed by the parties for the
date of delivery
b. D to give his car to C until C completes his course in BS
Accountancy
c. D to give his car to C until X dies
d. D to give C his car should C enroll in BS Accountancy
17. D promised to give C 10 sacks of rice when X, C’s father, dies.
The obligation of D to C is:
a. An obligation with a suspensive condition
b. An obligation with a resolutory condition
c. An obligation with a period
d. A pure obligation
18. The right of C before the delivery, on one hand, and his right
after the delivery, on the other hand, of the agricultural land and its
fruits, to him are referred to as:
a. Personal right and real right, respectively
b. Real right and personal right, respectively
c. Both are considered a personal right
d. Both are considered a real right19. When the debtor and the creditor agree to a dacion en pago
(transfer of ownership of property to the creditor to settle a monetary
obligation), before such transfer of ownership, there is actually a:
a. Compensation
b. Confusion
c. Condonation
d. Novation
20. Alternative obligation and facultative obligation are similar in
which of the following respects?
a. The right of choice may be given either to the debtor or creditor
b. Several prestations are due
c. Only one prestation is due but the debtor may render another in
substitution
d. The obligation becomes a simple obligation once the
choice of the prestation is made and communicated
21. D owes C the following debts: P3,000.00 due on August 10;
P3,000.00 due on August 15; P3,000.00 due on August 20; and
P3,000.00 due on August 25 which is secured by pledge of D’s ring. If
today is August 22, and D pays C P3,000.00 with neither D nor C
designating the debt to which the payment shall apply, the payment
shall be applied:
a. To the debt due on August 10, following the frst-due, frst-pay
basis
b. To the debts due on August 10, August 15, and August 20,
proportionately at P1,000.00 each
c. To the debt due on August 25, since it is the most onerous to D
d. To all the debts proportionately at P750.00 each
22. Which of the following obligations is a pure obligation and is
demandable at once?
a. D to allow C to use D’s car until December 31, 2015
b. D to allow C to use D’s car until C fnishes his course in
accounting
c. D to give C his car. No mention is made when D shall give
the car
d. D to give C a car if C fnishes his course in accounting
23. D borrowed P100,000.00 from C. the parties agreed at the time
the obligation was constituted that should D so desire, he may give his
agricultural land to C by way of dacion en pago to pay his loan
obligation on due date. The obligation of D to C is:
a. A conjunctive obligation
b. A simple obligation
c. An alternative obligation
d. A facultative obligation24. D obtained a loan from C in the amount of P50,000.00. Unable to
give cash on due date in payment of his loan obligation, D proposed to
C that he would be giving instead his diamond ring to settle his debt. C
agreed and accepted the ring from D. the new agreement between D
and C involved both:
a. Novation and application of payment
b. Novation and dacion en pago
c. Compensation and payment by cession
d. Confusion and tender of payment
25. A, B, and C are liable in solidum to X for P12,000.00 X renounced
the share of A who accepted it. Later, B becomes insolvent.
a. X can collect from C P8,000.00
b. X can collect from C P4,000.00
c. X can collect from C P12,000.00
d. X can collect nothing from C
26. D owes C P20,000.00 due on March 15. C, on the other hand,
owes D the following debts: P8,000.00 due on March 1, P3,000.00 due
on March 8, P5,000.00 due on March 14. On March 12, C assigned his
right to T with notice to D but with D not giving his consent to the
assignment. On March 15, T can collect from D:
a. P20,000.00
b. P9,000.00
c. P4,000.00
d. None, because the assignment made by C was without the
consent of D
27. A, B, and C are solidary debtors of X, Y, and Z. solidary creditors,
in the amount of P2,700.00. X renounces the whole obligation without
the consent of Y and Z. The debtors accepted he renunciation.
a. The whole obligation is extinguished
b. Only P900.00 is extinguished
c. No part of the obligation is extinguished because not all the
creditors consented to the renunciation
d. Only P300.00 is extinguished
28. A, B, and C are obliged to deliver a specifc horse to X, Y, and Z.
a. A demand made by X against A, B, and C is a valid demand
against all the debtors
b. A demand made by X, Y, and Z against A is a valid demand
against all the debtors
c. If a valid demand is made against all the debtors but
debtor C cannot comply with his part of the obligation,the obligation is converted into a monetary obligation to
pay the value of the horse plus damages
d. If the debtors default in their obligation because C is insolvent, A
and B will be liable for C’s share of the obligation
29. The following are characteristics of a facultative obligation,
except:
a. Only one thing is principally due
b. The right of choice cannot be given to the creditor
c. The debtor must give the substitute in case the principal
thing is lost due to the debtor’s fault before substitution
d. If the principal is void, the debtor is not obliged to give the
substitute
30. Dacion en pago and payment by cession are special forms of
payment. They are similar in which of the following respects?
a. On the number of creditors involved
b. On the extent of the properties involved in the payment
c. On the purpose of the payment
d. On whether the debtor is released completely from his
obligation/s
31. When two persons are claiming the same right to collect from
you and you are in doubt as to whom you will give your payment, your
remedy so that you will not pay to the wrong person is:
a. Tender of payment
b. Application of payment
c. Dacion en pago
d. Consignation
32. D borrowed P50,000.00 from C. On due date, D did not have any
money to pay the debt so he proposed to C that the latter accept a ring
to settle the debt. C accepted the proposal and received the ring.
Immediately after receiving the ring, C sold it to B. D’s obligation to
give P50,000.00 to C is extinguished by:
a. Dacion en pago
b. Payment by cession
c. Sale
d. Application of payment
33. D, professional singer, agreed to sing for a fee of P20,000.00 at
the birthday party of C who was a fan of D. due to numerous
commitments, D could not go to the party of C. He sent X, anotherprofessional singer who was known to sing better than D, to sing at C’s
party, and informed C that the latter needed to pay only P10,000.00
a. D may validly assign his obligation to sing because the reduced
fee was advantageous to C
b. D may validly assign his obligation to sing because X could
perform the obligation better than him
c. D may not validly assign his obligation to sing because it
is personal in nature
d. C cannot refuse the performance of the obligation by X because
the obligation to sing is transmissible since it would not require
much effort on the part of either D or X who both are professional
singers
34. One peso, P5.00, and P10.00 coins are legal tender up to:
a. P100.00
b. P500.00
c. P1,000.00
d. Any amount
35. D obtained a loan of 5,000.00 from C. On due date, D tendered
payment amounting to P5,000.00 consisting of P5,000 pieces of P1.00
coin
a. The payment offered by D is legal tender
b. C may not refuse to accept the payment
c. Should C refuse to accept the payment, D may resort to
consignation (deposit of the payment in court)
d. C may demand that he be paid in bills
36. A, an agent of P, owes B P20,000.00. B, on the other hand, owes
P, P20,000.00. both debts are due.
a. P may claim legal compensation
b. A may claim legal compensation
c. B may claim legal compensation
d. Neither P, A nor B may claim legal compensation
37. The kind of fraud which renders a contract voidable is:
a. Causal fraud
b. Incidental fraud
c. Fraud in performance
d. Future fraud
38. D promised to give P20,000.00 to C provided C does not sign a
contract with X on or before December 31, 2014. The condition of the
obligation is: [Show Less]