BUSINESS LAW TESTBANKS / REVIEWERS
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 Barbels 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 Cs 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. Elmos obligation is extinguished.
b. Elmos obligation is to pay the value of the ring plus damages.
c. Berts right is to demand the value of any of the objects plus damages.
d. Elmos 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
17. S1:The principle of autonomy of contracts means that the contracting parties as a rule
may agree upon any stipulation, clause, term and condition.
S2: Relativity of contracts means that contracts take effect not only between the parties
but also their heirs and assigns.
a. False;false b. true;true c. false;true d. true;false
18. It is an obligation which is based on positive law and gives right to enforce its
performance
a. Natural obligation c. Moral obligation
b. Civil obligation d. legal obligation
19. Which of the following is demand necessary to make the debtor in delay in the
performance of his obligation?
a. When the time of performance is of the essence
b. When the time of performance has been stipulated
c. When the law so provides
d. When demand would be useless
20. Liability for damages in the performance of an obligation arises from the following, except
a. Negligence c. Delay
b. Acts or omissions punished by law d. Fraud
21. Liability for damages arising from fraud is demandable and there can be a waiver of an
action for past fraud.
There can be a waiver of an action for future negligence but not fraud.
a. Both statements are false c. First is true, second is false
b. Both are true d. Second is true, first is false
22. Delia borrowed from Celia a sum of money with a stipulated rate of interest to be paid in
three equal monthly installments from January to March. Delia paid an amount for which
the latter issue a receipt stating that the payment is for the month of February. In this
case,
a. The installment for the month of March is also considered paid.
b. The installment for the month of January is conclusively presumed to have been paid.
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 Barbels 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 Cs 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. Elmos obligation is extinguished.
b. Elmos obligation is to pay the value of the ring plus damages.
c. Berts right is to demand the value of any of the objects plus damages.
d. Elmos 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
17. S1:The principle of autonomy of contracts means that the contracting parties as a rule
may agree upon any stipulation, clause, term and condition.
S2: Relativity of contracts means that contracts take effect not only between the parties
but also their heirs and assigns.
a. False;false b. true;true c. false;true d. true;false
18. It is an obligation which is based on positive law and gives right to enforce its
performance
a. Natural obligation c. Moral obligation
b. Civil obligation d. legal obligation
19. Which of the following is demand necessary to make the debtor in delay in the
performance of his obligation?
a. When the time of performance is of the essence
b. When the time of performance has been stipulated
c. When the law so provides
d. When demand would be useless
20. Liability for damages in the performance of an obligation arises from the following, except
a. Negligence c. Delay
b. Acts or omissions punished by law d. Fraud
21. Liability for damages arising from fraud is demandable and there can be a waiver of an
action for past fraud.
There can be a waiver of an action for future negligence but not fraud.
a. Both statements are false c. First is true, second is false
b. Both are true d. Second is true, first is false
22. Delia borrowed from Celia a sum of money with a stipulated rate of interest to be paid in
three equal monthly installments from January to March. Delia paid an amount for which
the latter issue a receipt stating that the payment is for the month of February. In this
case,
a. The installment for the month of March is also considered paid.
b. The installment for the month of January is conclusively presumed to have been paid.
