REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
OBLIGATIONS
1. The following are the
... [Show More] requisites of an oblicon, except:
a. Passive subject, debtor or obligor.
b. Active subject, creditor, or oblige.
c. Efcient cause.
d. Demand.
It is insistent and peremptory request, made as if by right.
2. Obligations may arise from any of the following, except:
a. Contracts.
b. Quasi-contracts.
c. Law.
d. Prestation.
It’s the object or subject matter of the obligation
3. It is the voluntary administration of the property of another without his
consent.
a. Negotiorum gestio
b. Solutio indebiti
c. Quasi-delict
d. Contract
It creates the obligation to reimburse the gestor for necessary and
useful expenses.
4. It is a wrong committed without any pre-existing relations between the
parties.
a. Natural obligations
b. Quasi-delict
c. Quasi-contract
d. Crime
These are acts or omissions that cause damages to another, there
being fault or negligence but without any pre-existing contractual
relationbetween the parties.
5. Unless the law or the stipulations of the 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.
If both the contract and law are silent then the diligence expected of a
good father of a family.
6. The creditor has a right that is enforceable against a defnite passive subject.
This right is known as:
a. Personal right.
b. Real right.
c. Natural right.
Page 1 of 94REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
d. Civil right.
This is the right that may be enforced by one person to another.
7. It is a thing that is particularly designated or physically segregated from all
others of the same class.
a. Generic thing.
b. Indeterminate thing.
c. Determinate thing.
d. Real thing.
It is identifed by it is individuality.
8. One of the following is a determinate thing. Which is it?
a. A cow.
b. A horse.
c. A Toyota car with engine no. 12345, body no. 34890 and a plate no. ABC 123.
d. A ring with diamond embellishment.
Car can be identifed easily because of its individuality.
9. Demand must be made on the due date of the obligation in order for delay to
exist in one of the following cases. Which is it?
a. When it was stipulated by the parties that demand need not be made.
b. When the law provides that demand need not be made.
c. When the obligation does not indicate whether demand must be made or not
on due date.
d. When time is of the essence of the contract.
10. This refers to delay on the part of the creditor.
a. Mora solvendi ex re
b. Compensation morae
c. Mora solvendi ex personae
d. Mora accipiendi
Delay on the part of the debtor to fulfll his obligation ( to give, or to
do).
11. There shall be no liability for loss due to fortuitous events in one of the
following cases. Which is it?
a. When the debtor delays.
b. When the parties so stipulated that there shall be liability even in case of loss
due to fortuitous events.
c. When the nature of the obligation requires the assumptions of risks.
d. When the obligation is to deliver a determinate thing and there was no
stipulation as to the liability of the debtor in case of loss due to fortuitous
events.
No person shall be liable for fortuitous event.
12. The following are the remedies of the creditor to pursue his claims
against the debtor, except to:
a. Pursue the property owned and in possession of the debtor.
b. Exercise all the rights and bring all the actions of the debtor (accion
subrogatoria)
Page 2 of 94REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
c. Impugn the acts which the debtor may have done to defraud his creditors
(accion pauliana).
d. Compel the debtor to perform the service in obligations to do.
13. D borrowed P50, 000.00 from C. C dies before he has collected the
debt leaving S, his son, as heir. Which of the following statements is correct?
a. S can collect from D although D and C did not agree that the credit
right will pass on to the heirs of C.
b. S cannot collect because the credit right is personal to C.
c. S can collect only if D and C agreed that the credit right will pass
on the heirs of C.
d. S cannot collect because the law prohibits the transmission of the
credit right.
All rights acquired in virtue of an obligation are transmissible.
14. D is obliged to give C a specifc car if C passes the CPA Licensure
Examination. D’s obligation is an example of:
a. A pure obligation
b. An obligation with a suspensive condition.
c. An obligation with a resolutory condition.
e. An obligation with a period.
Because it is a condition the happening of this will give rise to the
obligation.
15. 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.
This is a period with a period with a suspensive effect. Here, the
obligation becomes demandable at once but is extinguished upon the
lapsed of the period.
16. One of the following is a void obligation:
a. D is obliged to give C P5, 000.00 if C does not go to the moon.
b. D is obliged to give C P5, 000.00 if D goes to Baguio.
c. D is obliged to give C P5, 000.00 if C goes to Baguio.
d. D is obliged to give C P5,000.00 if D wins frst prize in the
sweepstakes on a ticket that he had already purchased.
It is a conditional Obligation void impossible conditions annul the
obligations which depends upon them.
17. D is obliged to give C P10,000.00 if X dies. This is an example of:
a. An obligation with a suspensive condition.
b. An obligation with a resolutory condition.
c. An obligation with a period.
d. A pure obligation.
The remedy of the creditor is to ask the court to fx.
18. When the debtor binds himself to pay when his means permit him to
do so, the obligation is:
Page 3 of 94REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
a. An obligation with a resolutory condition.
b. A pure obligation.
c. An obligation with a suspensive condition.
d. An obligation with a suspensive period.
Because the obligations begins only from a day certain upon the
arrival of period.
19. Whenever a period is designated in an obligation, the said period shall
be presumed to have been established for the beneft of:
a. The debtor.
b. The creditor.
c. Both debtor and creditor.
d. Neither of the parties.
This means that before the expiration of the period, the debtor may
not fulfll the obligation and neither may the creditor demand its
fulfllment without the consent of the other especially if the latter
would be prejudiced or inconvenienced thereby.
20. 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.
Art. 1198 paragraph 1 states that the debtor shall lose every right to
make use of the period in any of the following unless he gives a guaranty
or security for the debt.
21. An obligation ceases to be alternative and becomes a simple obligation in
the following cases, except when:
a. The debtor has communicated his choice to the creditor.
b. The right of choice has been expressly granted to the creditor and his choice
has been communicated to debtor.
c. Among the several prestations that are due only one is practicable.
d. Three prestations are due but one of them is unlawful or impossible.
Alternative obligation is one wherein various prestations are due but the
performance of one of them is sufcient while simple obligation has only
one prestation which it states in Art. 1200 paragraph 2.
22. D is obliged to give C a specifc watch, a specifc ring, or a specifc
bracelet. The parties agreed that C will have the right to choose the thing
which will be given to him. Before C could make his choice, the watch and
the ring are lost through D’s fault, successively. What is the right of C?
a. C may choose the delivery to him of the bracelet, or the price of the watch or
the price of the ring plus the damages.
b. C cannot choose the price of the watch or the price of the ring because the
said objects have already been lost.
c. C can only choose to have the bracelet because anyway, D can still perform
his obligation.
d. C can only choose to have delivery of the bracelet or the price of the ring
which was the last item that was lost plus damages.
Page 4 of 94REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
C has the right to demand for the value of the thing plus the damages
since it was the fault of the debtor.
23. D is obliged to give C a specifc ring . The parties agreed that D may give
a specifc bracelet as substitute. Which of the following statements is true?
a. If the ring is lost through a fortuitous event before substitution, the
obligation is extinguished.
b. If the bracelet is lost through a fortuitous event before substitution, the
obligation is extinguished.
c. If the ring is lost through a fortuitous event after substitution, the
obligation is extinguished.
d. If the ring is lost through the debtor’s fault after substitution, the debtor
shall pay damages.
Obligation is extinguished due to a fortuitous event because no one
should be held liable for a fortuitous event.
24. A, B, C and D are obliged to give V, W, X, Y and Z, P20,000.00
a. V may collect from A P20,000.00
b. V may collect from A P5,000.00
c. V may collect from A P1,000.00
d. V may collect from A P4,000.00
Equal distribution of the obligation to give.
25. A, B, C, and D, joint debtor, 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
It is in the section 4 Art. 1207 and Art. 1208 the Joint and Solidary
Obligations.
26. A, B, C, and D solidary debtor, are obliged to give V, W, X, Y, and Z, joint
creditor, 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
Joint obligation is where the whole obligation is to be paid or fulflled
proportionately by the debtors. (Refer to Art. 1207and Art. 1208).
27. A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z,
solidary creditor P20,000.0
a. V may collect from D P20,000.00
b. V may collect from D P4,000.00
c. V may collect from D P5,000.00
d. V may collect from D P1,000.00
Solidary obligation where each one of the creditor has the right to
demand from any of the debtors,entire compliance with the prestation
refer to Art 1207and Art. 1208.
Page 5 of 94REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
28. A, 25, B, 35 and C, 17, are solidary debtor of X in the amount of
P9,000.00
a. X may collect from A P9,000.00
b. X may collect from A P6,000.00
c. X may collect from A P1,000.00
d. X may collect nothing because the obligation is voidable, C is being minor.
Art. 1216 the creditor may proceed against any one of the solidary
debtors or some or all of them simultaneously.
29. The following obligations are divisible, except an obligation:
a. To give defnite things.
b. Which has for its object the execution of a certain of days of work.
c. Which has for its object the accomplishment of work by metrical units.
d. Which by its nature is susceptible of partial performance.
Art. 1223 tackle’s divisible and indivisible obligations since it refers to a
defnite things it is presumed to be indivisible.
30. 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.
Section 6 Art. 1226, a penalty is an accessory of the principal obligation to
pay a previously stipulated indemnity intended primarily to induce its
fulfllment.
31. Rockman and Company published an advertisement in the newspapers
which reads as follows “INVITATION TO BID: Construction of the company’s
warehouse located at 123 Luzon Street, Sta. Quiteria, Quezon City”. The
advertisement also included the specifcations of the warehouse to be
constructed. three companies submitted their bids: ABC Company, with a bid
price of P4,5000,000.00. After considering the fnancial capability, reputation
and experience of the bidders, the kind and quality of materials to be used
and other factors, Rockman and Company, the lowest bidder, now questions
the award made by Rockman Company to DEF Company which submitted a
higher bid.
a. The award to DEF Company is voidable because it was only the second
lowest bidder.
b. ABC Company should be the winning bidder having submitted the lowest bid.
c. The award to DEF Company is valid because Rockman Company was not
bound to accept the lowest bidder.
d. The award to DEF Company is void by reason of Rockman’s violation of the
terms of the invitation to bid.
It may refer to the principle of Bidding in which it follows a process.
32. One of the following is not incapable of giving his consent.
a. Insane persons.
b. Deaf-mutes who do not know.
c. Deaf-mutes who know how to read.
d. Unemancipated minors.
Page 6 of 94REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
Art. 1327 the following cannot give consent to a contract such as
unemancipated minors.
33. A contract entered into by an incapacited person is:
a. Void.
b. Voidable.
c. rescissible.
d. Unenforceable.
It is voidable since the person involve is incapacitated which means he has
no capability to decide for his own.
34. Contracts entered into in a state of drunkenness or during hypnotic spell
are:
a. Valid.
b. Voidable.
c. rescissible.
d. Void.
35. A contract entered into by an insane person during a lucid interval is:
a. Valid.
b. Voidable.
c. rescissible.
d. Void.
36. Aside from fraud and undue influence, the following are the vices of
consent, except:
a. Violence.
b. Intimidation.
c. Mistake.
d. Dealer’s talk.
37. Mistake in three of the following will make a contract voidable. Which one
will not?
a. Mistake as to the substance of the thing which is the object of the contract.
b. Mistake as to the principal conditions which principally moved one or both
parties to enter into the contract.
c. Mistake as to the identity or qualifcations of one of the parties, which
identity or qualifcations have been the principal cause of the contract.
d. Simple mistake of account.
38. D owes C the following debts: P6, 000.00 due on June 12; P6, 000.00 due
on June 18; and P6, 000.00 due on June 20. All debts are unsecured except
the debt due on June 20 which is secured by a pledge of D’s diamond ring to
C. By agreement, the beneft of the term on 4 debts was granted to C.
Assuming that D has P6, 000.00 on June 18 and is ready to pay C, which of
the following statements is correct?
a. D may apply his payment of P6, 000.00 to any of the debts due on June
12, June 15, and June 18 since they are all due as of June 18.
b. D may apply his payment only to the debt due on June 20 because it is
the most burdensome to him.
c. D must apply the payment proportionately to the debts due as of June
18 at P2,000.00 each.
d. D may apply the payment to any of the four debts.
Art. 1252 in which application of payments is stated.
Page 7 of 94REGULATORY FRAMEWORK ON BUSINESS TRANSACTIONS TEST BANK
39. The offer made by the debtor to pay his obligation to his creditor is
known as;
a. Consignation.
b. Tender of Payment.
c. Application of payment.
d. Dation of payment.
Art. 1256, It is the act on the part of the debtor of offering to the creditor the
thing or amount due.
40. 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 presents 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.
Art. 1256 second paragraph states the consignation alone shall produce the
same effect in the following cases.
41. M owes P P10, 000.00. The obligation is evidenced by a promissory note.
Subsequently, P assigned the note to A, to B, B to C, and C back to M. The
obligation of M is extinguished by:
a. Compensation.
b. Confusion.
c. Condonation.
d. The obligation is not extinguished because there was no payment.
Confusion which takes place in the person of any of the latter does not
extinguish the obligation except as regards the share corresponding to the
creditor or debtor in whom the two characters concur.
42. In order that condonation may extinguished an obligation involving a
movable property whose value exceeds P5, 000.00-
a. It is sufcient that the condonation and the acceptance are in writing,
even a private one.
b. It is required that the condonation and the acceptance be in
publicinstrument.
c. The delivery of the document evidencing the debt is sufcient since
the property is movable.
d. The condonation and the acceptance may be made orally.
Art 1270 states about the condonation or remission and it requisites.
43. One of the following is not a requisite of legal compensation. Which is it?
a. That each one of the obligors be bound principally, and that he be at
the same time a principal creditor of the other.
b. That the two debts be due.
c. That both debts be liquidated and demandable.
d. That the debts are payable at the same place.
Art. 1270 enumerates the requirements or requisites for legal compensation.
Page 8 of 94 [Show Less]