FPB Flashcards
It is the statutory amounts allowed to a party to an action for his expenses incurred in
the action.
Court Fees
1st Statement - Payment must be made to the creditor, who is the creditor all the time
of the constitution of the obligation.
2nd Statement – If a person is subrogated to the right of the creditor, payment can still
made to the original creditor.
False, False
The common property of a universal partnership shall be:
All the properties which belong to each of the partners at the time of the constitution of the partnership as well as the all the profits which they may acquire therewith
The process of intentionally deceiving others by producing the appearance of a contract which is different from the true agreement is:
Relative Simulation
In return for the 20 years of faithful service of X as a house helper to Y, the latter
promised to pay Php100,000.00 to X’s heirs if he (X) dies in an accident by fire. X
agreed. Is this an insurance contract?
No, since Y actually made a conditional donation in X’s favor
The person who pays for the debtor is put into shoes of the creditor, so to speak.
Subrogation
Dona pledged her LG washing machine to Belle for P25,000.00. Dona was unable to
pay the obligation 60 days after due date. Belle sold the machine at public auction for
P15,000.00. Which of the following is correct?
Belle cannot recover the deficiency of P10,000.00
Which is true in the effects of the payment of the penalty?
The debtor can perform the obligation and not pay the penalty
Which is false about the binding effects of voidable contacts?
The existence of economic damage is essential for the annulment of voidable contracts
A, single, has been active member of the Social Security System (SSS) for the past 20
months. She became pregnant out of wedlock and on her 7th month of pregnancy, she
was informed that she would have to deliver the baby through caesarian section
because of some complications. Can A claim maternity benefits?
Yes, the law does not make distinctions between married and unmarried
female.
Remedies of the Unpaid Seller. Except:
Foreclosure of the goods
The crime of estafa by issuing a check has the following elements. Which among the
following is not included:
1) the offender has postdated or issued a check in payment of an obligation contracted at the time of the postdating or issuance
2) at the time of postdating or issuance of said check the offender has no funds in the bank or the funds deposited are not sufficient to cover the amount of the check
3) the payee has been defrauded
This is constructed to mean an arrangement or understanding with the bank for the
payment of such check.
Credit
FOB alongside the vessel, who pays the expenses?
Vendee
Atoy sold to Bitoy a residential lot said to be containing an area of 1,000 square meters
at P1,000 per square meter. In this connection, which of the following statements is
correct?
f the lot should contain 900 sq. meters, B can choose between
proportionate reduction of the price or rescission of the sale.
Tradition clavium applies to –
Movable property
Maria agreed to deliver an IPhone Slim Edge, or Samsung Galaxy S6, or LG Beat
Cellphone to Petra. In the given example of an alternative obligation, which of the
following effects of loss of objects of obligation does not conform to the provisions of the
law?
(if the phone is lost, the obligation is extinguished)
The case where the minor was guilty of passive misrepresentation and was held not
liable for the contract.
Rosario L. De Braganza, et al., petitioners
vs
Fernando F. De Villa Abrille, respondent
A natural obligation under the New Civil Code of the Philippines is one which
Cannot be judicially enforced but authorizes the obligee to retain the obligor’s payment or performance
Annaliza uses a savings account with a BPI bank. The contract between Annaliza and
the bank is one of:
Simple loan
The reckoning of the prescriptive period to file action for annulment is four (4) years
depending on the cause of action. Identify which does not conform with the rule:
(Fraud) In case of intimidation, violence or undue influence from the time the defect of the consent ceases
Which of the following is not correct?
A particular partnership has for its object determinate things, their use of fruits, or a specific undertaking or the exercise of a profession or vocation (WRONG)
Particular partnership = Specific undertakings
Gabriel sold to Andre a car for a price of P750,000.00. The contract provides that
Andre will pay cash of P200,000.00 and for the balance, Andre will give a land worth
P550,000.00. What is the nature of the contract?
Sale
Which of the following is not an obligation of the pledgor?
To participate in the public auction of the thing pledged.
AA owes fifteen (15) persons substantial amounts of money. His financial situation
indicates that his liabilities far exceed his assets. If AA cedes or assigns his properties
to his creditors,
: The creditors shall sell the properties assigned and when sold, the debt of
AA shall only be released to the extent of the net proceeds of the sale
AA entered into a contract to sell with BB, undertaking to convey to the latter one of the
five lots he owns, without specifying which lot it was, for the price of P1 Million. Later,
the parties could not agree which of five lots he owned AA undertook to sell to BB. What
is the standing of the contract?
Void
X alleged that Y promised to give X one hectare of land. This is in consideration of X’s
meritorious service to Y. Y pleads in defense that since the promise was not in writing, it
is unenforceable under the Statute of Frauds. Decide.
The statute of fraud is inapplicable here because the promise to give the land is not of real property
A sold his land to B who began to possess it. Later C, a stranger, sold the same land to
D who in good faith registered the sale. Who should be considered as the owner?
B
P, a salesgirl in a flower shop at the Ayala Station of the Metro Rail Transit (MRT)
bought two tokens or tickets, one for her ride to work and another for her ride home.
She got to her flower shop where she usually worked from 8 a.m. to 5 p.m. At about 3
p.m., while P was attending to her duties at the flower shop, two crews of the MRT got
into a fight near the flower shop, causing injuries to P in the process. Can P sue the
MRT for contractual breach as she was within the MRT premises where she would
shortly take her ride home?
No, since P had no intention to board an MRT train coach when the incident
occurred.
Upon the proposal of a third person, a new debtor substituted the original debtor
without the latter’s consent. The creditor accepted the substitution. Later, however, the
new debtor became insolvent and defaulted in his obligation. What is the effect of the
new debtor’s default upon the original debtor?
The original debtor is free of liability since ovation took place and this relieved him from his obligation
Today A and B entered into a contract. Three years later, A discovered that B used
fraud in the performance of their contract.
A can still ask for annulment within 4 years after the discovery of the fraud.
AA and BB orally agreed on the following: (i) the land to be sold has an area of 10,000
sq. meters; (ii) price is P5Million; and (iii) AA shall prepare the deed of sale. With
fraudulent intent, AA knowing the inadequacies of BB with respect to numbers wrote
1,000 sq. meters instead of 10,000 sq. meters. The sale is
Valid but the instrument may be reformed
To secure the payment of an earlier loan of P20,000 as well as subsequent loans which
her friend Noreen, would extend to her, Karen executed in favor of Noreen a chattel
mortgage over her (Karen) car. Is the mortgage valid?
A chattel mortgage cannot effectively secure after0incurred obligations. the chattel mortgage in the problem given would be deemed to secure only the loan of 20,000
De Leon owns Candido P10,000. As security, De Leon pledged his horse to Candido.
While in the possession of the latter, the horse gave birth to a pony. Who is entitled to
the pony?
De Leon shall be entitled to the pony but it shall be included as pledge in the
absence of a stipulation.
Conventional subrogation of a third person requires the consent of:
The original parties and of the third person
A, B, C and D are joint creditors of E and F, solidary debtors in the amount P40, 000.
How much can A, B and C collect from E?
A, B and C could collect P30, 000 from E
Ownership is retained despite delivery, except
Mutuum
Which statement is FALSE?
The action for annulment of contracts shall be extinguished when the thing
which is the object thereof is lost through fraud or mistake of the person who has a right
to institute the proceedings
Which of the following is correct?
A voidable contract produces legal effects
following are instances where Unpaid Seller can exercise right of resale, except:
Insolvency of the buyer
Juan and Miguel are solidary debtors of Pedro in the amount of Php 100,000.00. This
type of solidarity is an example of?
Passive solidarity
Pedro obliged himself to deliver to Juan an iPhone cellphone. This type of obligation is
an example of?
Simple obligation
As a general rule, in assignment of credit, the assignor in good faith:
A. Warrants the existence of the credit at the time of assignment
B. Warrants the legality of the credit at the time of assignment
C. Warrants the solvency of the debtor at the time of assignment
A and B
Which is not an element of Novation?
If they are compatible, the new obligation novates the first
In the Redemption of Rural land, what is the rule?
If two or more adjoining owners desire to exercise the right of the redemption at the same time, the owner of the adjoining land of smaller area shall be preferred; and should both lands have the same area the one who first requested the redemption
The order in double sale of real property
A. Possession in good faith
B. Registration in good faith
C. Oldest title in good faith
BAC
After many years of shopping in the Metro Manila area, housewife HW has developed
the sound habit of making cash purchases only, none on credit. In one shopping trip to
Mega Mall, she got the shock of her shopping life for the first time, a store‘s smart
salesgirl refused to accept her coins in payment for a purchase worth not more than one
hundred pesos. HW was paying seventy pesos in 25centavo coins and twenty five
pesos in 10 centavo coins. Strange as it may seem, the salesgirl told HW that her coins
were not ―legal tender.
Coins 25 cents and below: up to P100 is legal tender
If a partner is induced by fraud or misrepresentation to become a partner, the remedy is
Voidable
The following are instances when there is no deficiency judgment, except:
(with deficiency judgemnet) real estate mortgage chattel mortgage antichresis conventional pledge
Right of vendee where immovable sold encumbered with non-apparent burden,
EXCEPT:
Rights
1) he may ask for the rescission of the contract unless he should prefer the appropriate indemnity
2) within one year to be computed from the execution of the deed the vendee may bring the action for for rescission or sue for damages
3) one year having elapsed, he may only bring an action for damages within an equal period, to be counted from the date on which he discovered the burden or servitude
Act of administration: A managing partner can perform even without the knowledge and
consent of the other partners.
Act of dominion or ownership: All partners, including managing partner, must give their
consent.
Both statements are true
Statement No. I - Actual knowledge is equivalent to registration of the sale in real
property.
Statement No. II - In case of personal property, the buyer who first registers it is the
owner of the thing.
Statement No. III - The vendee must appeal the decision in order that the vendor may
become liable for eviction.
Only 1 statement is false
Because of failure of Janette and Jeanne to pay their loan to X Bank, the latter
foreclosed on the mortgage constituted on their property which was put up by them as
security for the payment of the loan. The price paid for the property at the foreclosure
sale was not enough to liquidate the obligation. The bank sued for deficiency. In their
answer, Janette and Jeanne did not deny the existence of the loan nor the fact of their
default. They, however, interposed the defenses that the price at the auction was
extremely low and that their loan, despite the loan documents, was a long-term loan
which had not yet matured
X bank is correct. The inadequacy of the price of the sold properties is not a
barrier for the debtor to redeem such property.
The following are the remedies available to the creditor in order to protect his rights
against the debtor, except
To have the debtor prosecuted, punished and imprisoned for violations of
the Revise Penal Code of the Philippines
Identify which of the following statement is FALSE?
If AA and BB are jointly liable to pay CC Php 1,000,000.00. This is an
example of joint indivisible obligation
Solid Investment House commissioned Mon Blanco and his son Steve, both noted
artists to paint a mural for the Main Lobby of Solid for a contract price of P2M. Who
owns the mural?
Solid investment house
Juan was born on January 5, 2005 and Maria was born on February 14, 2006 and are
highschool sweethearts. They met each other while they were in their elementary days.
Due to their undying love for each other, they entered into a contract of marriage. What
is the status of the marriage?
unenforceable
Leonardo is the Chairman and President, while Raphael is a Director of NT
Corporation. On one occasion, NT Co, represented by Leonardo and A Ent, a single
proprietorship owned by Raphael, entered into a dealership agreement whereby NT Co
appointed A Ent as exclusive distributor of its products in Northern Luzon. What is the
status of the dealership agreement?
The dealership agreement is valid upon the assumption that the same was approved by the BOD of NT Co before it was signed and that such approval was made under the following conditions
In order that fraud may make a contract voidable:
: It should be serious and should have not have been employed by both
contracting parties
The following are instances when implied warranty is not applicable, except:
: Sale or return
If a partner is insolvent, the first in the order of preference in the distribution of his
assets is:
Separate creditor of the partner
All of the following are obligations of the debtor if the object is a determinate thing,
except:
To deliver the fruits from the perfection of contract.
Rodman, the President of TF Co, wrote a letter to Gregorio, offering to sell to the latter
5,000 bags of fertilizer at P100 per bag. Gregorio signed his conformity to the letteroffer, and paid a down-payment of P50th. A few days later, the Corporate Secretary of
TF informed Gregorio of the decision of their BOD not to ratify the letter offer. However,
since Gregorio had already paid the down-payment, TF delivered 500 bags of fertilizer
which Gregorio accepted. TF made it clear that the delivery should be considered an
entirely new transaction. Thereafter, Gregorio sought enforcement of the letter-offer. Is
there a binding contract for the 5,000 bags of fertilizer? Explain.
No, Rodman was not authorized by the BOD to enter into the said contract
or that he was empowered to do so
S sold to B a parcel of land for P1 million. B paid S P1 million in fake bills. The sale is:
Valid because of the valid cause which is the 1,000,000 price
After many difficult years, which called for sacrifices on the part of the company‘s
directors, ABC Manufacturing Inc was finally earning substantial profits. Thus, the
President proposed to the BOD that the directors be paid a bonus equivalent to 15% of
the company‘s net income before tax during the preceding year. The President‘s
proposal was unanimously approved by the BOD. A stockholder of ABC questioned the
bonus. Does he have grounds to object?
Yes, the law provides that the total annual compensation of the directors, in
the preceding year, cannot exceed 10% of the company‘s net income before income tax
The remedy to recover the ownership of the real property
Accion reivindicatoria(?)
Which of the following statements is correct?
A stipulation which excludes one or more partners from any shares in the profits or losses is void
Which of the following statements is not correct?
A limited partner may not be an unsecured creditor of the limited partnership
Dunggon borrowed P50,000 from Carlo. As security for the payment of the debt,
Dunggon pledged a rolex watch valued at P75,000. It was expressly stipulated in the
contract that if Dunggon cannot pay his debt when it matures, the debtor shall “execute
a deed of absolute sale of the ring in favor of the creditor.” Dunggon failed to pay the
debt when it matured.
Carlo cannot appropriate the watch because it is pactum commissorium which is expressly prohibited by law
A sale with the right to repurchase anytime from the date of sale was executed. In this
case:
The buyer has 4 years within which to repurchase the property sold.
Reformation is not the property remedy if
There was mistake, fraud, inequitable conduct or accident which prevented
the meeting of the minds of the contracting parties
NO. 1: A substituted limited partner has the right to inquire any information or account
of the partnership transactions and to inspect partnership books.
NO. 2: A substituted limited partner shall be subject to all restriction and liabilities of the
assigning limited partner
True true (?)
AA offered to sell his land to BB for Php 300,000.00. BB accepted the offer and paid
AA the purchase price. AA delivered the owner’s duplicate of the Transfer Certificate of
title of the land. BB wants to register the land in his name but the Register of Deeds
asks BB for the Deed of Sale. What can BB do?
He may compel Mr. AA to execute the Deed of Sale because the contract is
valid
AA, who was in the United States of America, phoned his brother, BB, authorizing him
to sell AA’s parcel of land in Pasay. AA sent the title to BB by courier service. Acting for
his brother, BB executed a notarized deed of absolute sale of the land to Z after
receiving payment. What is the status of the sale?
Void, since AA should have authorized agent BB in writing to sell the land
The following contracts, except one, are void ab initio. Which is the exception?
Void ab initio / void at the beginning
those whose cause object or purpose is contrary to law morals good customs public order or public policy
those which are absolutely simulated or fictitious
those whose cause or object did not exist at the time of the transaction
those whose object is outside the commerce of men
those which contemplate an impossible service
those where the intention of the parties relative to the principal object of the contract cannot be ascertained
those expressly prohibited or declared void by law
AA and BB executed jointly and severally a promissory note for Php 2,000,000.00 in
favor of CC. CC remitted the whole obligation because of his love for AA. Under the
foregoing, which is true in remission?
If only Php 1,300,000.00 is remitted, BB is still liable to CC for Php
700,000.00
AA owes BB Php 100,000.00. On the due date, AA delivers a cashier’s check for the
full amount. BB refuses to accept the check.
AA has no legal basis for making a consignation
Statement No. 1: The offense under B.P. 22 is a continuing offense and may therefore
be prosecuted within the territory where any of the elements have been committed.
Statement No. 2: Each act of drawing and issuing of a bounced check constitutes a
violation of B.P. 22
True, false
An employee of a large manufacturing firm earns a salary which is just a bit more than
what he needs for a comfortable living. He is thus able to still main tain a P10,000
savings account, a P20,000 checking account, a P30,000 money market placement and
a P40,000 trust fund in a medium-size commercial bank.
The P10,000 savings account and the P20,000 checking account are
deemed insured by the PDIC. The P10,000 savings account and the P20,000 checking
account are covered by the Law on Secrecy of Bank Deposits.
The following are true about Rescission in a Rescissible contract, except
Rescission is a principal remedy
In the following instances, tender of payment is not required, except:
tender of payment not required
1) when the creditor is absent or unknown or does not appear at the place of payment
2) when he is incapacitated to receive the payment at the time is due
3) when without just cause he refuses to give a receipt
4) when two or more persons claim the same right to collect
5) when the title of the obligation has been lost
A mortgaged his car to B for P200,000. A failed to pay his obligation. B sold it at public
auction for P180,000. Can B recover the deficiency?
Yes, even without stipulation
Property rights of a partner, except
property rights of a partner
1) his rights in specific partnership property
2) his interest (profit plus surplus) in the partnership and
3) his right to participate in the management
Solid Investment House commissioned Mon Blanco and his son Steve, both noted
artists to paint a mural for the Main Lobby of Solid for a contract price of P2M. Who
owns the copyright of the mural?
Mon Blanco and his son owns the copyright being the artists of the mural
and the ones who exerted the efforts
X, at Y’s request, executed a Real Estate Mortgage (REM) on his (X’s) land to secure
Y’s loan from Z. Z successfully foreclosed the REM when Y defaulted on the loan but
half of Y’s obligation remained unpaid. May Z sue X to enforce his right to the
deficiency?
No, because X is not Z’s debtor.
G, a grocery goods supplier, sold 100 sacks of rice to H who promised to pay once he
has sold all the rice. H meantime delivered the goods to W, a warehouseman, who
issued a warehouse receipt. Without the knowledge of G and W, H negotiated the
receipt to P who acquired it in good faith and for value. P then claimed the goods from
W, who released them. After the rice was loaded on a ship bound for Manila, G invokes
his right to stop the goods in transit due to his unpaid lien. Who has a better right to the
rice?
P, since he has superior rights as a purchaser for value and in good faith.
S1 - Transparency allows public involvement of qualified and eligible Civil
Society Organizations (NGOs, PAs, academic Institutions, and religious
institutions) to observe and monitor the procurement process until contract
implementation. S2 - Primary beneficiaries shall have the priority claim to death benefits over
secondary beneficiaries. Whenever there are primary beneficiaries, no death benefits shall be paid to secondary beneficiaries.
S1 is incorrect, S2 is correct
The following are instances when the certificate in a limited partnership may be amended, except:
all the limited partners cease to be such
A worker below 18 should be directly under the sole responsibility of
parents or guardians; work does not interfere with the child’s schooling/normal
development; with work permit from DOLE. S2 - Competitive Bidding refers to a method of procurement which is opentoparticipation by any interested party
S1 is incorrect, S2 is correct
X subscribed to 10,000 shares in the capital stocks of AAA Corporation. Hepaid50% of the 10,000 shares. X asked the Corporate Secretary to issue him the corresponding stock certificate representing the 50% of what he already paid. The Corporate Secretary of the corporation refused. Was the Corporate Secretary correct?
The Corporate Secretary is correct because the Revised
Corporation Code provides that no certificate of stock shall be issued to a subscriber until the shares as subscribed have been fully paid.
A private corporation was created by a special law. Later, the law creating it
was declared invalid. May such corporation claim to be a de facto corporation?
No, where a private corporation is created under a special law, there is no attempt to incorporate a valid corporation
- RA 7934 aims to protect consumers against hazards to health and safety, protect consumers against deceptive, unfair and unconscionable sales acts and practices, provide information and education to facilitate soundchoice and the proper exercise of rights by the consumers, provide adequaterights and means of redress. S2 - Premium pay is the amount given in case a worker does not work onhisrest day.
1 is correct, S2 is incorrect
S1 – The freeze order in AMLA shall be effective immediately within a period of 20 days.
S2 - On motion of the petitioner filed before the expiration of twenty days from issuance of a freeze order in AMLA proceedings, the court may for good cause extend its effectivity for a period not exceeding six months.
S3 – The officers of the homeowners association shall be given fifteen (15)
working days to refer the application to the members of the association.
S1 and S2 are true, S3 is false
The period to appeal the denial of the application for registration of a
Cooperative from CDA to the Office of the President is
90 days
The Board of Directors of XYZ Corp. unanimously passed a Board Resolutionapproving the taking of steps that in reality amounted to willful tax evasion. Ondiscovering this, the government filed tax evasion charges against all thecompany’s members of the board of directors. The directors invoked thedefense that they have no personal liability, being mere directors of a fictional
being. Are they correct?
No, since the law makes directors of the corporation solidarily
liable for gross negligence and bad faith in the discharge of their duties.
the following contracts can be ratified, except:
Unauthorized
For purposes of determining violation of the provisions of Anti-Money
Laundering Law, a transaction is considered as a “Suspicious Transaction” with “Covered Institutions” regardless of the amount involved, where whichthe following circumstances exist/s?
All of the choices
I do that you may give
Facio ut des
Stikki Cement Company was organized primarily for cement manufacturing. Anticipating substantial profits, its President proposed that Stikki invest ina) apower plant project, b) a concrete road project, and c) quarry operations for
limestone in the manufacture of cement. What corporate approval or voteisneeded for quarry operations for limestones in the manufacture of the cement?
Majority of the BOD
Alternative dispute resolutions (ADR) are recognized both in the RevisedCorporation Code and the Cooperative Law. This ADR is a process whereinthe parties meet with a mutually selected impartial and neutral person whoassists them in the negotiation of their differences.
Mediation
S1 – The bond of the single stockholder if he is likewise the treasurer is renewed every 3 years. (3 years wrong)
S2 – The vote to divide the Cooperative is ¾ of the members.
S3 – The limited partner may rightfully demand the return of his contributionafter he has given a one (1) month notice in writing to all members if no timeis specified in the certificate. (60 days dapat)
S1 and S3 are false, S2 is true
The One Person Corporation is required to submit the following documents, except:
Compensation of director
M and N were very good friends. N borrowed P10,000 fromM. Becauseof
their close relationship, the promissory note executed by N provided that hewould pay the loan “whenever his means permit.” Subsequently, Mand Nquarreled. M now seeks to collect the loan because he is in dire need of
money. What kind of obligation is present?
Period
S1 - Alternative methods of procurement is allowed in highly exceptional
cases.
S2 - As the owner of a business, the employer enjoys what are commonly known as management prerogatives. Among these are the right to select thepersons to be hired and to discharge them for a just and valid cause; to
promulgate and enforce reasonable employment rules and regulations’ tocreate, merge, divide, classify, and abolish departments or positions in thecompany’ to sell or close the business. The exercise of those rights however
must always be in good faith.
Both are correct
The government agency granted with the power of supervision and
examination over banks and non-bank financial institutions performing quasi- banking functions, to ensure that the conduct of its business is on a soundfinancial basis that will provide continued solvency and liquidity is -
The Bangko Sentral ng Pilipinas
In case of a pre-negotiated rehabilitation plan in Section 76 of FRIA, it shouldbe approved by:
Creditors holding at least 2/3 of the total liabilities of the debtor
including secured creditors holding more than 50% of the total secured claimand unsecured creditors holding more than 50% of unsecured claims.
The following are prohibited transactions in a limited partnership, except:
granting loans to the partnership
In distinguishing Earnest Money from Option Money, Earnest Money is
Given only when there is a perfected contract of sale
The Corporation Code sanctions a contract between two or more
corporations which have interlocking directors, provided there is no fraudthat
attends to it, and it is fair and reasonable under the circumstances. The
interest of an interlocking director in one corporation may be either substantial
or nominal. It is nominal if his interest:
does not exceed 20% of the outstanding capital stock
Offenses against the confidentiality, integrity, and availability of computer
data and system, except:
Infringement
Under the Articles of Incorporation of Manila Industrial Corp, its principal
place of business shall be in Pasig, MM. The principal corporate office is at
the Ortigas Center, Pasig, MM while its factory processing leather productsisin Manila. The corporation holds its annual stockholders‘ meeting at theManila Hotel in Manila and its BOD meeting at a hotel in Makati MM. Thebylaws are silent as to the place of meetings of the stockholders and directors. Where should the meeting of the stockholders be held?
Within Metro Manila, Metro Manila is considered a city or
municipality
In the election for the Board of Trustees of non-stock corporations, the right of the members of any class or classes to vote may be limited, broadened, or denied and each member shall be entitled to one vote. This is true -
unless otherwise provided in the Articles of Incorporation or intheBy-laws.
S1 – In Culpa Aquiliana, negligence is only incidental. (x)
S2 – In Culpa Contractual, ordinary diligence is available as a defense(x)
S3 – The Master and Servant Rule applies in Civil Negligence (/)
S4 – Proof beyond reasonable doubt is the evidence required in Culpa Criminal (/)
Only two statements are false
The penalty for violation of BP 22 is –
Both imprisonment and fine
The BOD of a corporation declared due and payable all unpaid subscriptionto the capital stock. The lone dissenting director failed to pay on due date, i.e., 19 Sept 2021, his unpaid subscription. Other than the shares wherein hewasunable to complete payment, he did not own any share in the corporation. On23 Sept 2021, he was informed by the BOD that, unless due payment is
meanwhile received, he:
a) could no longer serve as a director of the corporation forthwith:
b) would not be entitled to the cash and stock dividends which were declared
and payable on 24 Sep 2021; and
c) could not vote in the stockholders meeting scheduled to take place on26Sept 2021. Was the action of the BOD on each of the foregoing matters valid?
no no no
The following are instances of acts of ownership in general partnership, except:
continue the partnership on the death, insanity or civil interdictionof a general partner
A bound himself to deliver to B a 65-inch 2022 model of TV set, and the18cubic feet of White Westinghouse refrigerator with motor no. WERT 385, which B saw in A’s store, and to repair B’s piano. A did not do any of these.
S1 – A can be compelled to deliver the TV set.
S2 – A can be compelled to deliver the refrigerator.
S3 – A can be compelled to repair the piano.
S1 S2 true S3 false
The following are the requisites of voluntary liquidation of the individual
debtor, except:
Acts of insolvency need not be alleged and proved
The corporate term of a stock corporation is that which is stated in its Articlesof Incorporation. It may be extended or shortened by an amendment of theArticles when approved by majority of its Board of Directors and:
ratified by at least 2/3 of the stockholders representing the
outstanding capital stock.
High Earning Corporation filed a complaint against five of its officers for
violation of Section 31 of the Revised Corporation Code. The corporationclaimed that the said officers were guilty of advancing their personal intereststo the prejudice of the corporation, and that they were grossly negligent inhandling its affairs. Aside from documents and contracts, the corporationalsosubmitted in evidence records of the officers‘ U.S. Dollar deposits in several
banks overseas - Boston Bank, Bank of Switzerland, and Bank of NewYork. For their part, the officers filed a criminal complaint against the directors of
High Earning Corporation for violation of Republic Act No. 6426, otherwiseknown as the Foreign Currency Deposit Act of the Philippines. The officersalleged that their bank deposits were illegally disclosed for want of a court
order, and that such deposits were not even the subject of the case against
them. Under the Bank Secrecy Law, can these foreign currency deposits beopened since they are subject matter of the litigation?
No, since the Bank Secrecy excludes FCDU accounts
For applications or requests for license, clearance, permit, certification or
authorization requiring the approval of the local Sangguniang Bayan, Sangguniang Panlungsod, Sangguniang Panlalawigan, the processing timeis
45 working days
The full report of the personal data breach must be submitted
within five (5) days
X Corp., whose business purpose is to manufacture and sell vehicles,
invested its funds in Y Corp., an investment firm, through a resolution of itsBoard of Directors. The investment grew tremendously on account of YCorp.’s excellent business judgment. But a minority stockholder in XCorp. assails the investment as ultra vires. Is he right and, if so, what is the statusof
the investment?
Yes, it is an ultra vires act of the corporation itself but voidableonly, subject to stockholders’ ratification.
Under the Revised Corporation Code, an Emergency Board may be createdby a vote of _____________ to (purpose) _________ and it will be
temporarily filled from the ___________ of the corporation
Majority, prevent grave, Officers
Which of the following corporate acts are valid, void, or voidable?
i) XL Foods Corporation, which is engaged in the fast-food business, enteredinto a contract with its President Jose Cruz, whereby the latter would supplythe corporation with its meat and poultry requirements.
ii) The Board of Directors of XL Foods Corporation declared and paid cashdividends without approval of the stockholders.
iii) XL Foods Corporation guaranteed the loan of its sister company XL Meat
Products, Inc.
Voidable, Valid, Void
XXX Bank Corporation and ZZZ Corporation were merged into XXZZBankCorporation. So as not to create any unnecessary conflict, all the former
directors of both banks wanted to be appointed /elected as members of theBoard of Directors of the merged bank. Each bank used to have eleven (11)
members of the board. The maximum number of directors of the mergedbankis
21
X is a minority stockholder of CCC Corporation. Y is a member of the Boardof Directors of CCC Corporation and at the same time he is the President. Xbelieves that Y is mismanaging CCC Corporation hence, as a stockholder andin behalf of the other stockholders, he wanted to sue Y. Which statement ismost accurate?
Derivative suit is an exclusive remedy that X can institute.
Which phrase best completes the statement - The affidavit of good faithinaDeed of Chattel Mortgage is
an oath where the parties swear that the mortgage is made for the purpose of securing the obligations specified and that the obligation is just
and valid;
The provision aims at criminalizing the intentional hindering of the lawful useof computer systems including telecommunications facilities by using or
influencing computer data.
System Interference
Which phrase best completes the statement - To bind third parties, a chattel
mortgage of shares of stock must be registered?
with the Register of Deeds where the debtor resides and the principal office of the corporation.
If ABC Corporation will increase its authorized capital stock, the CorporationCode requires the approval of the SEC and -
the approval of the majority of the Board of Directors and approval
of the shareholders holding 2/3 share of the outstanding capital stock.
A single-purpose cooperative may transform into a multi-purpose cooperativeand may create subsidiaries only after at least:
2 years of operation
No additional compensation other than per diems shall be paid to a director
of a cooperative during of existence of any cooperative.
First year
In case of disagreement between the corporation and a withdrawing
stockholder who exercises his appraisal right regarding the fair value of hisshares, a three-member group shall by majority vote resolve the issue withfinality. May the wife of the withdrawing stockholder be named to the threemember group?
No, the wife of the withdrawing shareholder is not a disinterestedperson
The following modes of extinguishment of obligations require two or morecreditors, except:
Dation in Payment
Under the Intellectual Property Code, lectures, sermons, addresses or
dissertations prepared for oral delivery, whether or not reduced in writingor
other material forms, are regarded as –
original works
Where no creditors are affected the cooperative may be voluntarily dissolvedby vote of the board of directors and by a resolution duly adopted by theaffirmative vote of the members with voting rights, present and constitutingaquorum at a meeting to be held upon call of the directors.
Majority; 3/4
In double sale of real property, priority is given to -
The one to whom who had it registered in good faith
In the following instances, the third person becomes part of the contract, except:
Delivery of the subject matter of the contract
Large scale in the Data Privacy Act is committed and the maximum penaltyinthe scale of penalties respectively provided in the offenses shall be imposed when the personal information ___________________________ is harmed, affected or involved as the result of the above mentioned actions.
of at least one hundred (100) persons
The contract shall be presumed to be an equitable mortgage in the following instances, except:
When the vendor retains for himself a part of the purchase price
The stockholders of People Power Inc (PPI) approved two resolutions inaspecial stockholders‘ meeting: a) Resolution increasing the authorized capital
stock of PPI; and b) Resolution authorizing the BOD to issue, for cash
payment, the new shares from the proposed capital stock increase in favor of
outside investors who are non-stockholders. The foregoing resolutions wereapproved by stockholders representing 99% of the total outstanding capital
stock. The sole dissenter was Jimmy Morato who owned 1%of the stock. Arethe resolutions binding on the corporation and its stockholders includingJimmy Morato, the dissenting stockholder?
No, While these resolutions were approved by the stockholders,
the directors‘ approval, which is required by law in such case, does not exist.
Below are instances when legal compensation is not allowed, except:
One of the debts arises from mutuum
Instances when benefit to the creditor need not be proved if it redoundedor
not to him, except:
If after payment, the debtor acquired the right to collect fromtheguarantor
X is being charged for violation of Anti-Graft and Corrupt Practices becausehe is suspected of having accumulated unexplained wealth. X maintains
deposit accounts with ABC Bank. The Ombudsman filed criminal cases
against X before the Sandiganbayan. Can the Court issue subpoenas against
ABC Bank to produce all documents pertaining to all the deposit accountsof
X?
Yes, because there is already a pending case and provided thesubpoena must be specific as to which account.
No member shall transfer his shares or interest in the cooperative or any part
thereof unless he had held such share capital contribution or interest for not
less than:
One year
The number of board of directors in a stock corporation
Minimum of 2, maximum of 15
An elected officer of a cooperative may be removed by
BOD
X, who is the Executive Vice President of ABC Corporation, a listed company, can be held liable or guilty of insider trading if, he -
All of the choices
A and B sold 1,000 sacks of rice to X and Y. On X’s request, A and Bdelivered the 1,000 sacks of rice to him. X resold the rice without turningover
any part of it or its price to Y. What kind of obligation is present?
Joint divisible obligation
The number of trustees in a non-stock corporation
Minimum of 5, may be more than 15
ABC Corp. increased its capital stocks from Php10 Million to Php15 Millionand, in the process, issued 1,000 new shares divided into Common Shares”B” and Common Shares “C.” T, a stockholder owning 500 shares, insists onbuying the newly issued shares through a right of pre-emption. The company claims, however, that its By-laws deny T any right of pre-emption. Is thecorporation correct?
No, since the By-Laws cannot deny a shareholder his right of pre- emption.
The common property of a universal partnership shall be
All the properties which belong to each of the partners at the time of the constitution of the partnership as well as the profits which they may
acquire therewith.
S1 – The period for non-use of corporate charter is 5 years from the dateof
filing the articles of incorporation.
S2 – The period for non-use of a cooperative is 2 years from the issuance of
the certificate of incorporation.
S3 – No damages can be recovered for acts of infringement of a patent
committed more than three (3) years before the institution of the action for
infringement.
S2 and S3 are false, S1 is true
Upon the winding up of the cooperative affairs, any asset distributable toanycreditor, shareholder or member who is unknown or cannot be found shall begiven to the:
Federation or union to which the cooperative is affiliated with
Upon dissolution of a cooperative, what happens to the capital donated tosaid cooperative?
It is subject to escheat
Three of the following contracts are inexistent and void fromthe beginning. Which is the exception?
That where one of the parties is incapable of giving his consent toa contract.
S1 - Consent of parties is required in legal compensation.
S2 - Consent of creditor is required in Substitution.
S3 - In Dation in payment, the creditor becomes the owner of the property given.
S4 - In Cession, creditors are only assignees
Only two statements are false
S1 – The period to extend the life of the corporation if fixed is 5 years beforeits expiration.
S2 – The period to extend the life of a cooperative is 5 years prior to its
expiration.
S3 – The period to extend the patent is 6 months prior to its expiration.
S1 and S3 are false, S2 is true
A _______ grants property rights on an invention, allowing the holder to exclude others from making, selling, or using the invention.
patent
Which of the following is the least defective contract?
Rescissible
S1 - Report must done within lemon law rights period i.e. ending twelve(12)
months from the date of subsequent delivery after repair to the consumer, or
up to twenty thousand (20,000) kilometers of operation after such delivery , whichever comes first. S2 - The 250% rate must be paid to the worker in case the worker works onaholiday and it his rest day (230%)
Both are incorrect
X mortgaged her residential house and lot in favor of ABC Bank. Xdefaultedin her loan and so the bank foreclosed the real estate mortgage on the
residential house. Y then bought the residential house and lot before theexpiration of the redemption period. Can Y now take possession of the
property?
No, because it is still covered by the redemption period and thepurchaser is not yet entitled as a matter of right to take possession of theproperty.
The following are judicial grounds for the dissolution of partnership, except:
Insolvency of any partner
X is a depositor of AAA Bank. She has three (3) deposit accounts all under
her name. One, in checking account, one in saving account and another onein time deposit account. Each account has a balance of Php250,000. AAA
Bank became insolvent. Philippine Deposit Insurance Corporation was
assigned as receiver of the Bank. X therefore is unable to withdrawfromall of
the accounts. She then filed her claims with the Philippine Deposit Insurance Corporation. Which statement is most accurate?
X can claim a total of Php500,000 for all the three (3) accounts.
Which of the following is an exception to the secrecy of bank deposits andother laws which are in Philippine Pesos, but not an exception to the secrecyof foreign currency deposits?
Upon inquiry in cases of impeachment
S1 - In case of projects involving mixed procurements, the nature of the supplier, shall be determined based on the primary purpose of the contract.
S2 - The New SS Law likewise made it compulsory for Overseas Filipino workers, sea-based or land-based, to be members of the SSS as provided for
under Section 9-B of R.A. No. 11199.
Both are correct
Under the Anti-Money Laundering Law, a covered institution is requiredtomaintain a system of verifying the true identity of their clients as well as
persons purporting to act on behalf of
such clients
Applications or requests submitted by applicants or requesting parties of agovernment office or agency which only require ministerial actions on thepart
of the public officer or employee, or that which present only inconsequential
issues for the resolution by an officer or employee of said government.
Simple Transactions
S1 - Unless otherwise provided by the policy, an insurer is liable for a lossof
which a peril insured against was the proximate cause, although a peril not
contemplated by the contract may have been the remote cause of the loss. But the insurer is not liable for a loss of which the peril insured against wasonly a remote cause.
S2 - A grievance procedure is mandatory provision in the CBA, otherwiseit isnot registrable. Until the parties include a grievance procedure, the Corporateregistration is deferred
S1 is correct, S2 is incorrect
Mr. AB offered in writing to sell his house and lot for P750,000.00 to Mr. CDon July 1, 2019. Mr. CD requested Mr. AB to give him 60 days within whichtoraise the P750,000.00. On August 15, 2019, Mr. AB informed Mr. CDthat theprice is raised and now at P1,000,000.00. Can Mr. CD compel Mr. ABtosell
his house and lot at P750,000.00 which was offered in writing by Mr. AB?
No, because Mr. CD has not accepted the offer of Mr. AB.
X maintains a savings deposit in the amount of Php·1 Million with ABCBankCorporation. X also has obtained a loan from ABC Bank Corporation in theamount of Php1 Million. In case of default,
ABC Bank can set-off the loan from the savings account beingmaintained by X with ABC Bank
S1 – The period to notify the creation of the emergency board is within 5daysfrom the creation of the board.
S2 – The period to report the election of the officers of the One Person
Corporation is within 5 days from their appointment. S3 – The period to submit the certificate of stock for notation on the exerciseof appraisal right is within 10 days after the demanding for payment.
S2 and S3 are true, S1 is false
The following entities are not allowed to be a One Person Corporation (OPC), except:
Estate
The following are required to file their claims under the PDIC, except:
have not maintained the account under the name of business entities
The following instances are subject to suspensive condition, except:
Conventional redemption
S1 - An Asset Preservation Order is enforceable anywhere in the Philippines.
S2 - On the reporting of covered transactions, the law mandates that coveredinstitutions shall report to the AMLC all covered transactions within five (5)
working days from occurrence thereof.
S3 - On record keeping under AMLA, the law states that all records of all
transactions of covered institutions shall be maintained and safely storedfor five (5) years from the date of transactions.
All statements are true
AAA Corporation is a foreign corporation that wants to operate a
representative office here in the Philippines. As required by the CorporationCode, there is a need to appoint a Resident Agent as a condition precedent tothe issuance of a license to transact business in the Philippines. After two(2)
years, AAA Corporation removed its Resident Agent and did not appoint
anyone anymore. Which statement is the most accurate?
This can be a ground for revocation or suspension of its licensetodo business
A partnership which compromises all the partners may acquire by their workor industry during the existence of the partnership is
Universal partnership of profits
A and B sold 1,000 sacks of rice to X and Y. On X’s request, A and Bdelivered the 1,000 sacks of rice to him. X resold the rice without turningover
any part of it or its price to Y. From whom will Y ask for delivery of his share?
From A and B
Ralph and Vi orally agreed to form a partnership. Each contributed cashandpersonal properties worth P10,000 to a common fund. But they did not
register the partnership with the Securities and Exchange Commission (SEC)
The partnership is still valid
A sold a parcel of land to B for P200,000. In the deed of sale, there is astipulation that the purchase price shall be paid on a certain date and that incase of failure to pay on a certain date, then the contract shall be automatically rescinded. The period arrived and B failed to pay as stipulatedin the contract.
The contract is not rescinded until there is notarial rescission
Which of the following obligations of the vendor cannot be waived?
To transfer ownership to the buyer
A and B sold 1,000 sacks of rice to X and Y. On X’s request, A and Bdelivered the 1,000 sacks of rice to him. X resold the rice without turningover
any part of it or its price to Y. How much if any, can Y demand fromthe
person/s liable?
500
M and N were very good friends. N borrowed P10,000 from M . Because of their close relationship, the promissory note executed by N provided that he would pay the loan “whenever his means permit.” Subsequently, Mand Nquarreled. M now seeks to collect the loan because he is in dire need of
money.
No, he must first ask the court to fix the period
Which phrase best completes the statement - When a debt is secured by a real estate mortgage, upon default of the debtor?
the creditor can foreclose the mortgage and demand collection for any deficiency;
X is a depositor of AAA Bank. She has three (3) deposit accounts all under her name. One, in checking account,
one in saving account and another one in time deposit account. Each account has a balance of Php250,000. AAA
Bank became insolvent. Philippine Deposit Insurance Corporation closed the Bank. X therefore is unable to
withdraw from all of the accounts. She then filed her claims with the Philippine Deposit Insurance Corporation.
Which statement is most accurate?
a. X can claim a total of Php500,000 for all the three (3) accounts.
b. X can only claim from one (1) account of Php250,000.
c. X can claim a total of Php750,000 from all the three (3) accounts.
d. X cannot claim anything from any of the deposit accounts
a. X can claim a total of Php500,000 for all the three (3) accounts.
The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit records of an individual
without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.
a. In an examination to determine gross estate of a decedent.
X works as a research computer engineer with the Institute of Computer Technology, a government agency.
When not busy with his work, but during office hours, he developed a software program for law firms that will
allow efficient monitoring of the cases, which software program is not at all related to his work. Assuming the
program is patentable, who has the right over the patent?
a. X;
b. Institute of Computer Technology;
c. Neither X nor the Institute of Computer Technology can claim patent right over the invention;
d. X and the employer of X will jointly have the rights over the patent.
a. X;
The “test of dominancy” in the Law on Trademarks, is a way to determine whether there exists an infringement
of a trademark by -
a. Determining if the use of the mark has been dominant in the market.
b. Focusing on the similarity of the prevalent features of the competing marks which might create
confusion.
c. Looking at the mark whether they are similar in size, form or color.
d. Looking at the mark whether there is one specific feature that is dominant
b. Focusing on the similarity of the prevalent features of the competing marks which might create
confusion.
X’s painting of Madonna and Child was used by her mother to print some personalized gift wrapper. As part of
her mother’s efforts to raise funds for Bantay Bata, the mother of X sold the wrapper to friends. Y, an
entrepreneur, liked the painting in the wrapper and made many copies and sold the same through National
Bookstore. Which statement is most accurate?
a. Y can use the painting for his use because this is not a copyrightable material.
b. X can sue Y for infringement because artistic works are protected from moment of creation.
c. Works of art need to be copyrighted also to get protection under the law.
d. Y can use the drawing even though not copyrighted because it is already a public property having been
published already.
b. X can sue Y for infringement because artistic works are protected from moment of creation.
Compulsory Licensing of Inventions which are duly patented may be dispensed with or will be allowed
exploitation even without agreement of the patent owner under certain circumstances, like national emergency,
for reason of public interest, like national security, etc. The person who can grant such authority is -
a. the Director General of the Intellectual Property Office;
b. the Director of Legal Affairs of the Intellectual Property Office;
c. the owner of the Patent right;
d. Any agent of the owner of the Patent right.
b. the Director of Legal Affairs of the Intellectual Property Office;
The Fair Use Doctrine allows others to utilize copyrighted works under certain conditions. The factors to consider
whether use is fair or not would be the purpose and character of the use, nature of the copyrighted work,
amount and substantiality of the portions used, and what else?
a. Effect of the use upon the creator of the work.
b. Effect of the use upon the potential market of the work.
c. Effect of the use upon the public in general.
d. Effect of the use upon the class in which the creator belongs
b. Effect of the use upon the potential market of the work
XYZ Corporation bought ten (1 0) units of Honda Civic from CCC Corporation. ABC Bank granted a loan to XYC
Corporation which executed a financing agreement which provided for the principal amount, the installment
payments, the interest rates and the due dates. On due dates of the installment payments, XYZ Corporation was
asked to pay for some handling charges and other fees which were not mentioned in the Financing Agreement.
Can XYC Corporation refuse to pay the same?
a. No, because handling charges and other fees are usual in certain banking transactions.
b. Yes, because ABC Bank is required to provide XYZ Corporation not only the amount of the monthly
installments but also the details of the finance charges as required by the Truth in Lending Act.
c. No, because the Finance Agreement is a valid document to establish the existence of the obligation.
d. Yes, because legally, finance charges are never allowed in any banking transaction.
b. Yes, because ABC Bank is required to provide XYZ Corporation not only the amount of the monthly
installments but also the details of the finance charges as required by the Truth in Lending Act.
Which of the following is an exception to the secrecy of bank deposits which are in Philippine Pesos, but NOT an
exception to the secrecy of foreign currency deposits?
a. Upon Bangko Sentral ng Pilipinas (SSP) inquiry into or examination of deposits or investments with any
bank, when the inquiry or examination is made in the course of the SSP’s periodic special examination of
said bank to ensure compliance with the Anti-Money Laundering Act (AMLA);
b. Upon Philippine Deposit Insurance Corporation (PDIC) and SSP inquiry into and examination of deposit
accounts in case there is a finding of unsafe or unsound banking practice;
c. Upon inquiry in cases of impeachment;
d. Upon inquiry by the Commissioner of Internal Revenue in the event a taxpayer files an application to
compromise his tax liabilities on the ground of financial incapacity.
c. Upon inquiry in cases of impeachment;
The Anti-Money Laundering Law is a law that seeks to prevent money laundering activities by providing for more
transparency in the Philippine Financial System, hence the following institutions are covered by the law, except:
a. Bank and any financial institutions;
b. Pawnshops;
c. Casino operators;
d. All of the above
c. Casino operators
For purposes of determining violation of the provisions of Anti-Money Laundering Law, a transaction is
considered as a “Suspicious Transaction” with “Covered Institutions” regardless of the amount involved, where
which the following circumstances exist/s?
a. the amount involved is not commensurate with the client’s business or financial capacity;
b. there is no underlying legal or trade obligation, purpose or economic justification;
c. client is not properly identified;
d. All of the above
d. All of the above
The main feature of the Foreign Investment Act of 1991 is to introduce the concept of “Negative Lists”. Under
the said law, what is a “Negative List”?
a. It is a list of business activities or enterprises in the Philippines that foreigners are disqualified to
engage in.
b. It is a list of business activities or enterprises in the Philippines that foreigners are qualified to engage in.
c. It is a list of business activities or enterprises that are open to foreign investments provided it is with the
approval of the Board of Investment.
d. It is a list of business activities or enterprises that are open to foreign investments provided it is with the
approval of the Securities and Exchange Commission.
a. It is a list of business activities or enterprises in the Philippines that foreigners are disqualified to
engage in.
May a publicly listed universal bank own 100% of the voting stocks in another universal bank and in a
commercial bank?
a. Yes, if with the permission of the Bangko Sentral ng Pilipinas
b. No, since it has no power to invest in equities.
c. Yes, as there is no prohibition on it.
d. No, since under the law, the 100% ownership on voting stocks must be in either bank only
d. No, since under the law, the 100% ownership on voting stocks must be in either bank only.
Under the Intellectual Property Code, lectures, sermons, addresses or dissertations prepared for oral delivery,
whether or not reduced in writing or other material forms, are regarded as
a. Non-original works.
b. Original works.
c. Derivative works.
d. Not subject to protection.
b. Original works.
