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RFBT 1 Flashcards

1
Q

First statement: A void obligation may be the valid subject of a novation
Second statement: If the new obligation is void, the original one, as a rule, is
still extinguished
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct

A

B. Both statements are incorrect

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2
Q

This circumstance may affect the validity of the obligation if employed to induce
the consent of the other party:
a. Negligence
b. Fortuitous Event
c. Fraud
d. Delay

A

c. Fraud

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3
Q

D is indebted to C for P100,000 covered by a promissory note. Eventually, D met X,
a close friend of C, to whom he gave the P100,000 as payment for his (D) obligation
to C. C eventually negotiated the promissory note to X. In this case,
a. There is no valid payment since X is not a party in whose favor the obligation
was constituted
b. There is no valid payment since it does not appear that the payment redounded to
the benefit of C
c. There is valid payment since X was authorized to receive the same in behalf of
C
d. There is valid payment since X eventually acquired the rights to the credit

A

d. There is valid payment since X eventually acquired the rights to the credit

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4
Q

P20 bills are legal tender upto:
a. P100
b. P1,000
c. P100,000
d. No limit

A

d. No limit

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5
Q

On July 15, S sold his car to B through a public instrument, where it was agreed
that S will deliver the car on July 31 and B will pay the price on August 15. S
complied with this obligation but as of August 31, B has not yet paid the price
which prompted S to make a demand therefor. In this case, B was in delay since
a. July 15
b. July 31
c. August 15
d. August 31

A

d. August 31

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6
Q

In this kind of Substitution, the original debtor, will no longer be liable in case
of the insolvency of the new debtor subsequent to the substitution:
a. Delegacion
b. Expromision
c. Both Delegacion and Expromision
d. Neither Delegacion nor Expromision

A

c. Both Delegacion and Expromision

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7
Q

Hamzi, a Korean national, went to the Philippines for a vacation. While in Boracay,
she met went on a drinking spree and eventually met Jay, a bartender. While under
a state of drunkenness, Hamzi orally agreed to buy the land of Jay in Boracay for
P1,000,000, when its fair market value was P5,000,000. What is the status of the
contract?
a. Rescissible
b. Voidable
c. Unenforceable
d. Void

A

d. Void

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8
Q

A contract is defined as a meeting of the minds between two persons whereby one
binds himself with respect to another to give something or to render some service.
Which of the following is incorrect?
a. Contracts will always require two persons to be perfected
b. Contracts generally contain a unilateral obligation
c. Contracts cannot cover obligations not to do
d. All of the choices are incorrect

A

d. All of the choices are incorrect

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9
Q

Recission in rescissible contracts may be an available remedy in which of the
following cases?
a. If the thing under litigation is sold with the approval of the litigants
b. If the sale of the guardian of the ward’s property is with the approval of the
court
c. If the party invoking rescission can no longer return what he may be obliged to
return
d. None of the choices

A

d. None of the choices

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10
Q

Which of the following persons who may be placed under guardianship under the Rules
of Court is considered incapacitated to contract even if not yet placed under
guardianship?
a. Hospitalized lepers
b. Those suffering from civil interdiction
c. Prodigals
d. All of the choices

A

b. Those suffering from civil interdiction

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11
Q

Annulment, as a remedy, generally prescribes in:
a. 30 days
b. 1 year
c. 4 years
d. 10 years

A

c. 4 years

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12
Q

B, a minor, bought a house from S, of legal age. Without the fault of B, the house
burned down. In this case,
a. B can no longer ask for annulment of the sale
b. S may ask for the annulment of the sale
c. B and S must agree on the annulment of the sale
d. The loss will not be an obstacle to the action for annulment

A

d. The loss will not be an obstacle to the action for annulment

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13
Q

A, B and C are co-owners of a specific land. C sold his share to X and both A and
B want to exercise their right of redemption. In this case, which of the following
is correct?
a. Both A and B will be entitled to redeem pro-rata
b. If A’s intended use is best justified, only he shall be entitled to redeem
c. If B’s lot area is smaller, only he shall be entitled to redeem
d. If A exercised the right of redemption first, only he shall be entitled to redeem

A

a. Both A and B will be entitled to redeem pro-rata

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14
Q

B, a 17 year-old boy purchased food from a restaurant. What is the status of the
contract of sale?
a. Valid
b. Voidable
c. Rescissible
d. Unenforceable

A

b. Voidable

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15
Q

If a buyer already paid 8 years’ worth of installment, his Cash Surrender Value
shall be:
a. 50%
b. 55%
c. 60%
d. 65%

A

d. 65%

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16
Q

In real estate mortgage, the mortgagor can sell the mortgaged property –
a. With the oral or written consent of the mortgagee.
b. With the written consent of the mortgagee.
c. With court order.
d. Even without the consent of the mortgagee.

A

d. Even without the consent of the mortgagee.

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17
Q

First Statement: Pledge is a consensual contract
Second Statement: The obligation under a pledge is unilateral
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct

A

d. Only the second statement is correct

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18
Q

In this contract, future obligations may be covered without need of a separate or
new agreement:
a. Pledge
b. Real Estate Mortgage
c. Chattel Mortgage
d. All of the choices

A

b. Real Estate Mortgage

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19
Q

Lorenzo de Medici issued a check to Cesare Borgia drawn against Florence Bank. When
the date on the check arrived, Cesare presented the check for payment. To his
surprise, Florence Bank dishonored the check since a Stop Payment Order was issued
therefor at the request of Lorenzo. In this case,
a. Lorenzo may not be prosecuted for violating BP Blg. 22 because he is not the
drawer thereof.
b. Lorenzo may be prosecuted for violating BP Blg. 22 if the check would have been
dishonored for insufficiency of funds if there was no Stop Payment Order.
c. Lorenzo may not be prosecuted for violating BP Blg. 22 even if there were
insufficiency of funds since there was a Stop Payment Order.
d. Lorenzo may be prosecuted for violating BP Blg. 22 whether the check would have
been dishonored by insufficiency of funds or not since the check was already
dishonored because of the Stop Payment Order.

A

b. Lorenzo may be prosecuted for violating BP Blg. 22 if the check would have been
dishonored for insufficiency of funds if there was no Stop Payment Order.

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20
Q

Knowledge of insufficiency of funds in BP Blg 22 would be presumed if the check was
presented within __ days from the date of the check
a. 30
b. 60
c. 90
d. 120

A

c. 90

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21
Q

A hazardous substance which is defined as highly toxic must bear this word in its
label:
a. Warning
b. Caution
c. Poison
d. None of the choices

A

c. Poison

22
Q

The Lemon Law rights may be invoked within ____ from the delivery of the brand new
vehicle or ______kms whichever is earlier.
a. 1 year; 20,000
b. 1 year; 10,000
c. Six months; 20,000
d. Six months; 10,000

A

a. 1 year; 20,000

23
Q

Which of the following is a characteristic of a partnership?
a. Remuneratory
b. Formal
c. Innominate
d. Multilateral

A

d. Multilateral

24
Q

Which of the following can validly be considered a limited partnership?
a. A, B and C are all limited partners
b. A and B are both general partners
c. A, is a general partner while B and C are limited partners
d. A, B and C are all general partners

A

c. A, is a general partner while B and C are limited partners

25
Q

A, B and C are partners of ABC partnership, where A committed an act, with the
authority of B and C which cause injury to X, a third party. The liability for the
damage caused would be:
a. A will be primarily liable, B and C are subsidiarily liable
b. A, B and C are jointly liable
c. A, B and C are solidarily liable
d. A, B, C and ABC partnership are solidarily liable

A

d. A, B, C and ABC partnership are solidarily liable

25
Q

If a limited partner lends money to the partnership where a property of the
partnership is given as a security, the contract of security is:
a. Valid
b. Rescissible
c. Unenforceable
d. Void

A

b. Rescissible

26
Q

If a limited partner’s name is included in the partnership name,
a. There is no limited partnership to speak of
b. The partnership shall be treated as a general partner
c. The limited partner may be liable upto his personal assets
d. There is no effect on the partnership and the partners

A

c. The limited partner may be liable upto his personal assets

27
Q

Pactum Leonina is a stipulation
a. That distributes partnership profits equally
b. That excludes a partner from sharing in the profits and losses
c. That is valid
d. That exempts a partner from sharing in the liability after exhaustion of
partnership assets

A

b. That excludes a partner from sharing in the profits and losses

28
Q

If a corporation has three purposes, in its Articles of Incorporation,
a. It shall indicate only the primary purpose
b. It shall indicate only the secondary purpose
c. It shall indicate which one is the primary purpose, the secondary and the tertiary
purpose
d. It shall indicate the primary purpose and the other two will be indicated as
secondary purposes

A

d. It shall indicate the primary purpose and the other two will be indicated as
secondary purposes

29
Q

The following are valid considerations for shares of stock of a corporation, which
one is not:
a. Cash
b. Stocks of another corporation
c. Intangible property
d. All of the choices are valid considerations

A

d. All of the choices are valid considerations

30
Q

To be considered as a disqualification of a director, the penalty for the offense
committed must be imprisonment for a period:
a. At least 3 years
b. Exceeding 3 years
c. At least 6 years
d. Exceeding 6 years

A

d. Exceeding 6 years

31
Q

In this kind of voting method, the number of shares is multiplied by the number of
directors to be elected to determine the number of votes:
a. Straight Voting
b. Cumulative Voting
c. Straight Voting and Cumulative Voting
d. Neither Straight nor Cumulative Voting

A

b. Cumulative Voting

32
Q

The number of votes required to approve a transaction of a self-dealing director
of a corporation vested with public interest, aside from majority of the independent
directors:
a. Majority of the Board of Directors present and constituting a quorum
b. Majority of the entire membership of directors
c. 2/3 of the Board of Directors present and constituting a quorum
d. 2/3 of the entire membership of directors

A

d. 2/3 of the entire membership of directors

33
Q

Which of the following is a correct match of the requirements for corporate
officers?
a. President – required to be a citizen of the Philippines
b. Treasurer – required to be a director
c. Secretary – required to be a resident and a citizen of the Philippines
d. None of the choices is correct

A

c. Secretary – required to be a resident and a citizen of the Philippines

34
Q

Shares of stock covered by a subscription contract may be declared delinquent if
the subscription is not fully paid within ______ from the date fixed for their
payment or from the call made by the Board.
a. 15 days
b. 30 days
c. 45 days
d. 60 days

A

b. 30 days

35
Q

The following will require concurrence of 2/3 of the stockholders, except:
a. Shortening the corporate term
b. Declaration of cash dividends
c. Create bonded indebtedness
d. Mergers or consolidation

A

b. Declaration of cash dividends

36
Q

Proxy voting may be allowed in:
a. Stockholders’ Meeting
b. Directors’ Meeting
c. Both Stockholders’ and Directors’ Meeting
d. Neither Stockholders’ and Directors’ Meeting

A

a. Stockholders’ Meeting

37
Q

In case of mergers/consolidation, the required notice must be provided:
a. 30 days before the meeting
b. 20 days before the meeting
c. In the same manner as that of stockholders’ meeting
d. In the same manner as that of directors’ meeting

A

c. In the same manner as that of stockholders’ meeting

38
Q

Considering that stockholders of a close corporation may directly manage the
corporation, the effective maximum number of directors may be:
a. 15
b. 20
c. 25
d. 30

A

b. 20

39
Q

A foreign corporation is doing business in the country if it is continuing the body
or substance of the enterprise of business for which it was organized. This is
otherwise known as:
a. Continuity test
b. Substance test
c. Contract test
d. None of the choices

A

b. Substance test

40
Q

If a corporation has a fixed term, any extension must be filed not earlier than:
a. 3 years prior to the expiration of the term
b. 5 years prior to the expiration of the term
c. 3 years after the expiration of the term
d. 5 years after the expiration of the term

A

a. 3 years prior to the expiration of the term

41
Q

The voting rights of a common shareholder may only be limited by this kind of share:
a. Preferred shares
b. Redeemable shares
c. Founders shares
d. Treasury shares

A

c. Founders shares

42
Q

When summoned by the Securities and Exchange Commission, the officer required to
appear under the Revised Code of Corporate Governance is the:
a. President
b. Compliance Officer
c. Corporate Secretary
d. Treasurer

A

b. Compliance Officer

43
Q

A corporation using the fiscal year is required to submit its Financial Statements
to the SEC within how many days from the close of the fiscal year?
a. 105
b. 110
c. 115
d. 120

A

d. 120

44
Q

The following are transactions exempt from registration under the SRC, except:
a. A broker’s transaction, executed upon customer’s orders, on any registered
Exchange or other trading market.
b. The sale of capital stock of a corporation to its own stockholders exclusively,
where no commission or other remuneration is paid or given directly or indirectly
in connection with the sale of such capital stock
c. Subscriptions to unissued shares within the authorized capital stock
d. At any judicial sale, or sale by an executor, administrator, guardian or receiver
or trustee in insolvency or bankruptcy

A

c. Subscriptions to unissued shares within the authorized capital stock

45
Q

Which of the following may be considered an insider?
a. The director of the issuing corporation
b. The secretary of the president
c. Auditor of the corporation
d. All of the choices

A

d. All of the choices

46
Q

In case no-par value shares are issued for less than the issue price or stated
value, the liability will be borne by:
a. The Board of Directors
b. The Stockholder
c. The Board of Directors and the Stockholder, equally
d. The Board of Directors and the Stockholder, solidarily

A

a. The Board of Directors

47
Q

The quorum in stockholders’ meetings is generally:
a. 25%
b. Majority
c. 2/3
d. 3/4

A

b. Majority

48
Q

First statement: When a single stockholder acquires all the stocks of an ordinary
stock corporation, the latter may apply for conversion into n OPC, subject to the
submission of such documents as the SEC may require.
Second statement: As a rule, the OPC converted from an ordinary stock corporation
shall not be liable for the outstanding liabilities of the ordinary stock
corporation as of the date of conversion.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct

A

c. Only the first statement is correct

49
Q

Selling of the corporate assets and distribution of the proceeds refer to:
a. Dissolution
b. Liquidation
c. Termination
d. None of the choices

A

b. Liquidation

RFBT (2 decks)

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