BUSINESS LAW
TESTBANK 1
1. On September 21, 2010, Piolo agreed to sell his only carabao
to Sam and Sam agreed to pay the price of P25,000 if Sam will
pass the October 2010 CPA Examination. The list of successful
examinees was released on October 21, 2010 and Sam is one
of those who passed the examination. As a result,
a. Piolo is entitled to the P25,000 price plus interest beginning
September 21, 2010.
b. Sam is entitled to the carabao and its fruits beginning
September 21, 2010.
c. Sam is entitled to the carabao beginning September 21,
2010 and to its fruits beginning October 21, 2010.
d. Piolo shall deliver the fruits of the carabao and Sam shall
pay the interest on the price beginning September 21, 2010.
2. The following are elements of an obligation, except
a. Active and passive subjects
b. Efficient cause
c. Prescription
d. Vinculum
3. A, B, and C owe W, X, Y, and Z the sum of P120,000. If the
obligation is due, which of the following is not correct?
a. A is liable only for a total of P40,000.
b. W can only collect P10,000 from C
c. B can be required to pay P40,000 to any of the creditors
d. Y can only collect a total of P30,000
4. The following pertains to facultative obligations, except:
a. Comprehends only one object or prestation which is due
b. Choice pertains only to the debtor
c. Fortuitous loss of all prestations will extinguish the obligation
d. Not given.
,5. An obligation subject to the happening of a future and certain
event is
a. Conditional obligation
b. Suspensive conditional obligation
c. Resolutory conditional obligation
d. Obligation with a period
6. S1: The debtor shall lose the right to make use of the period
when he does not furnish any guaranty or security to the
creditor.
S2: In an obligation subject to a suspensive period, what is
suspended is birth of the obligation.
a. True;true b. true;false c. false;false
d. false;true
7. Which of the following is not a generic obligation?
a. Obligation to pay P1,000,000
b. Obligation to deliver 1999 Nissan Sentra Series III
c. Obligation to deliver 50 cavans of rice
d. Obligation to give a delimited generic object
8. “I will give you my car provided that if I like to have it back, you
will return the same to me.”
a. The obligation is void, because the fulfillment depends upon
the will of the debtor.
b. The obligation is void, because the fulfillment depends upon
the will of the creditor.
c. The obligation is valid because the condition merely causes
the loss of rights already acquired.
d. Both A and B.
9. S1: Dog obliged himself to give Cat a specific car tomorrow. If
Dog failed to deliver tomorrow after demand is made, Cat may
compel Dog to do his obligation and may ask for damages.
, S2: Darna obliged to deliver a car to Captain Barbel tomorrow.
If Darna failed to deliver tomorrow after demand is made,
Captain Barbel’s right is to ask a third person to deliver a car to
him at the expense of Darna plus damages.
a. Both statements are true.
b. Both statements are false.
c. Statement 1 is true while statement 2 is false.
d. Statement 1 is false while statement 1 is true.
10. Which of the following is not a conditional obligation?
a. D to give C P1,000 if C passes the examination.
b. D to pay C P1,000 if he has the means.
c. D to give C a horse if C marries X.
d. D is to use C’s car until C returns from Davao.
11. It is the voluntary administration of the property of another
without his consent.
a. Negotiorum Gestio c. Quasi-delict
b. Solutio Indebiti d. Contract
12. A, B and C are solidary debtors of X and Y, solidary
creditors, for P60,000. X makes a demand to A but the latter
paid Y. In here, the obligation is not extinguished.
A and B solidary debtors of X, Y and Z, solidary creditors. X
demands payment from A, but B, upon whom no demand is
made paid Z the entire obligation. In here, the obligation is
totally extinguished.
a. True;true b. true;false c. false;false
d. false;true
13. Elmo is obliged to give Bert, either a ring worth P5,000; or
bracelet worth P4,500; or a watch worth P4,000. All the objects
were lost due to Elmo’s fault in the order stated.
a. Elmo’s obligation is extinguished.
, b. Elmo’s obligation is to pay the value of the ring plus
damages.
c. Bert’s right is to demand the value of any of the objects plus
damages.
d. Elmo’s obligation is to pay the value of the watch plus
damages.
14. Culpa aquiliana as distinguished from culpa contractual:
a. Proof of due diligence in the selection and supervision of
employees is not considered a defense.
b. Proof of the contract and its breach is sufficient to warrant
recovery.
c. The negligence of the defendant is only an incident in the
performance of the obligation.
d. The source of liability is the negligent act of the person
causing damage to another.
15. S1: When one of the parties has brought an action to
enforce the contract, he cannot subsequently ask for its
reformation.
S2: The injured party may seek rescission even after he has
chosen the fulfillment of the obligation if the latter should
become impossible.
a. True; true b. true;false c. false;false
d. false;true
16. S1: An oral sale of land made by its owner is
unenforceable.
S2: Sale of land made by an agent without written authority
from owner thereof is void.
a. False;false b. false;true c. true;true
d. true;false
TESTBANK 1
1. On September 21, 2010, Piolo agreed to sell his only carabao
to Sam and Sam agreed to pay the price of P25,000 if Sam will
pass the October 2010 CPA Examination. The list of successful
examinees was released on October 21, 2010 and Sam is one
of those who passed the examination. As a result,
a. Piolo is entitled to the P25,000 price plus interest beginning
September 21, 2010.
b. Sam is entitled to the carabao and its fruits beginning
September 21, 2010.
c. Sam is entitled to the carabao beginning September 21,
2010 and to its fruits beginning October 21, 2010.
d. Piolo shall deliver the fruits of the carabao and Sam shall
pay the interest on the price beginning September 21, 2010.
2. The following are elements of an obligation, except
a. Active and passive subjects
b. Efficient cause
c. Prescription
d. Vinculum
3. A, B, and C owe W, X, Y, and Z the sum of P120,000. If the
obligation is due, which of the following is not correct?
a. A is liable only for a total of P40,000.
b. W can only collect P10,000 from C
c. B can be required to pay P40,000 to any of the creditors
d. Y can only collect a total of P30,000
4. The following pertains to facultative obligations, except:
a. Comprehends only one object or prestation which is due
b. Choice pertains only to the debtor
c. Fortuitous loss of all prestations will extinguish the obligation
d. Not given.
,5. An obligation subject to the happening of a future and certain
event is
a. Conditional obligation
b. Suspensive conditional obligation
c. Resolutory conditional obligation
d. Obligation with a period
6. S1: The debtor shall lose the right to make use of the period
when he does not furnish any guaranty or security to the
creditor.
S2: In an obligation subject to a suspensive period, what is
suspended is birth of the obligation.
a. True;true b. true;false c. false;false
d. false;true
7. Which of the following is not a generic obligation?
a. Obligation to pay P1,000,000
b. Obligation to deliver 1999 Nissan Sentra Series III
c. Obligation to deliver 50 cavans of rice
d. Obligation to give a delimited generic object
8. “I will give you my car provided that if I like to have it back, you
will return the same to me.”
a. The obligation is void, because the fulfillment depends upon
the will of the debtor.
b. The obligation is void, because the fulfillment depends upon
the will of the creditor.
c. The obligation is valid because the condition merely causes
the loss of rights already acquired.
d. Both A and B.
9. S1: Dog obliged himself to give Cat a specific car tomorrow. If
Dog failed to deliver tomorrow after demand is made, Cat may
compel Dog to do his obligation and may ask for damages.
, S2: Darna obliged to deliver a car to Captain Barbel tomorrow.
If Darna failed to deliver tomorrow after demand is made,
Captain Barbel’s right is to ask a third person to deliver a car to
him at the expense of Darna plus damages.
a. Both statements are true.
b. Both statements are false.
c. Statement 1 is true while statement 2 is false.
d. Statement 1 is false while statement 1 is true.
10. Which of the following is not a conditional obligation?
a. D to give C P1,000 if C passes the examination.
b. D to pay C P1,000 if he has the means.
c. D to give C a horse if C marries X.
d. D is to use C’s car until C returns from Davao.
11. It is the voluntary administration of the property of another
without his consent.
a. Negotiorum Gestio c. Quasi-delict
b. Solutio Indebiti d. Contract
12. A, B and C are solidary debtors of X and Y, solidary
creditors, for P60,000. X makes a demand to A but the latter
paid Y. In here, the obligation is not extinguished.
A and B solidary debtors of X, Y and Z, solidary creditors. X
demands payment from A, but B, upon whom no demand is
made paid Z the entire obligation. In here, the obligation is
totally extinguished.
a. True;true b. true;false c. false;false
d. false;true
13. Elmo is obliged to give Bert, either a ring worth P5,000; or
bracelet worth P4,500; or a watch worth P4,000. All the objects
were lost due to Elmo’s fault in the order stated.
a. Elmo’s obligation is extinguished.
, b. Elmo’s obligation is to pay the value of the ring plus
damages.
c. Bert’s right is to demand the value of any of the objects plus
damages.
d. Elmo’s obligation is to pay the value of the watch plus
damages.
14. Culpa aquiliana as distinguished from culpa contractual:
a. Proof of due diligence in the selection and supervision of
employees is not considered a defense.
b. Proof of the contract and its breach is sufficient to warrant
recovery.
c. The negligence of the defendant is only an incident in the
performance of the obligation.
d. The source of liability is the negligent act of the person
causing damage to another.
15. S1: When one of the parties has brought an action to
enforce the contract, he cannot subsequently ask for its
reformation.
S2: The injured party may seek rescission even after he has
chosen the fulfillment of the obligation if the latter should
become impossible.
a. True; true b. true;false c. false;false
d. false;true
16. S1: An oral sale of land made by its owner is
unenforceable.
S2: Sale of land made by an agent without written authority
from owner thereof is void.
a. False;false b. false;true c. true;true
d. true;false
