RFBT - REVIEWERS Flashcards
- In payment of 10 grams of shabu, A made a promissory note which reads “I promise to pay B
P10,000. Sgd.
A”. B transferred the note to C, who acted in good faith. Which is correct?
a. C can collect from A
c. C can collect from either A or B
b. B can collect from A
d. C can collect from B
d. C can collect from B
2. Before acceptance is conveyed, an offer becomes ineffective upon the death, civil interdiction, insanity or insolvency a. Of the offeror b. Of the offeree c. Of either party d. Of both the offeror and offeree
c. Of either party
- Which of the following is not correct?
a. The obligation to give includes that of delivering all its accessions and accessories even
though they may not have been mentioned
b. If a person obliged to do something fails to do it, the same shall be executed at his cost
c. When the obligation consists in not doing, and the obligor does what has been forbidden him, it
shall be undone at his expense
d. In reciprocal obligations, from the moment one of the parties fulfills his obligation, delay by the
other begins
a. The obligation to give includes that of delivering all its accessions and accessories even
though they may not have been mentioned
- D owes C P6,000. No date for payment was stipulated by the parties. Which is correct?
a. C can require D to pay when the period arrives
b. C can require D to pay at anytime
c. D is not liable to C because the obligation is void there being no date of payment
d. D is not required to pay unless C goes to court and asks the court to require D to pay
b. C can require D to pay at anytime
- On August 1, 2019, A agreed to sell his only cow to B and B agreed to pay the price of P20,000, if B
will pass the October 2019 CPA Examination. The list of successful examinees was released on
October 19, 2019 and B is one of those who passed the examination. As a result,
a. A is entitled to the P 20,000 price plus interest beginning August 1, 2019
b. B is entitled to the cow and its fruits beginning October 19, 2019
c. B is entitled to the cow beginning August 1, 2019 and to its fruits beginning October 19,
2019
d. A shall deliver the fruits of the cow and B shall pay the interest on the price beginning August 1,
2019
c. B is entitled to the cow beginning August 1, 2019 and to its fruits beginning October 19,
2019
- A and B are solidary debtors of C for P100,000 which is due on August 1, 2020. Thinking that the
obligation is already due, A paid C P100,000 on August 1, 2019. What rights will A have on February
1, 2020?
a. A can recover P50,000 reimbursement from B without interest
b. A can recover P 100,000 from C plus interest from August 1, 2019 to February 1, 2020
c. A can recover P50,000 reimbursement from B with interest from August 1, 2019 to February 1,
2020
d. A cannot recover yet from either B because the obligation is not yet due or C because the
payment was voluntary
b. A can recover P 100,000 from C plus interest from August 1, 2019 to February 1, 2020
Which of the following contracts of sale is void?
a. Where the buyer and seller are both insane
b. Where the husband aimed his gun to his wife so that his wife will sell her land to him
c. Where the buyer twisted the arm of the seller so that the seller will sign the deed of sale
d. Where the object of the contract has a redhibitory defect
b. Where the husband aimed his gun to his wife so that his wife will sell her land to him
- Which of the following statements is not correct?
a. If A gives his ring to B but it is not clear whether A donated it or merely lent it, the contract
should be interpreted as commodatum rather than donation
b. If A sells his car to B but A has 4 cars and it cannot be determined which car was sold, the
contract of sale is void
c. A borrowed P100,000 from B which bears interest at 12% per year but there is doubt
whether it is payable in 2 or 3 years, the period of payment shall be interpreted at 2 years
d. A engaged the services of B but the contract did not indicate the amount of compensation to be
paid, the amount thereof shall be the rate that is customarily paid in the place where the services
were rendered
c. A borrowed P100,000 from B which bears interest at 12% per year but there is doubt
whether it is payable in 2 or 3 years, the period of payment shall be interpreted at 2 years
- A has two creditors, B and C. the obligation to B is P10,000 and to C is P12,000. Later, with the
consent of A and B, W pays B P10,000. Now W and C are the creditors of A. Suppose A has only P
12,000, which is correct?
a. C should be preferred
c. C and W should be paid proportionately
b. W should be preferred
d. A may choose whom to pay
c. C and W should be paid proportionately
A, minor, sold the ring of his brother without authority. The ring has a fair market value of PIM and
selling price was P600,000. The contract is
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
c. Unenforceable
- A obtained an interest free loan of P50,000 from B evidenced by a promissory note payable six
months after date. At maturity A called B by phone to ask for an extension of one month and offer to
pay 20% interest on the loan. Enticed by the 20% interest, B agreed to the extension of maturity.
Which is correct?
a. The interest is a demandable interest by virtue of an agreement
b. The interest is unenforceable
c. The loan is valid but the interest is void
d. The loan and interest are both demandable
c. The loan is valid but the interest is void
Statute of Frauds, for interest to be valid - Stipulation to pay interest on loans or for the use of money WHICH MUST BE IN WRITING
- In 2018, A promised to give to B his land if B passes the CPA Board Examination in 2019. If the
condition is fulfilled, does A also give the fruits for the period of one year?
a. Yes, in obligation to give, once the condition is fulfilled the obligation shall retroact to the day of
the constitution of the obligation
b. Yes, the creditor shall appropriate the fruits and interest, unless there is contrary intent
c. No, if the obligation is unilateral, the debtor shall appropriate the fruits and interest unless
there is contrary intent
d. A and B will divide the fruits equally
c. No, if the obligation is unilateral, the debtor shall appropriate the fruits and interest unless
there is contrary intent
Compare with card #5, where a cow was SOLD (BILATERAL).
- Which of the following is a valid stipulation?
a. A promises to give B P10,000, and if A fails, A will allow B to have sexual intercourse with
her for one week
b. A will give B P10,000, if C will go to planet Saturn within the year
c. A agreed to give B a house and lot if B will kill A’s wife
d. A agreed to put poison on the food of B’s wife and if A fails, to pay B P10,000 for damages
a. A promises to give B P10,000, and if A fails, A will allow B to have sexual intercourse with
her for one week
A and B mutually promised orally to marry each other while they were in Mang Telmo’s place. The
agreement between A and B is
a. Unenforceable, because the agreement was not made in writing
b. Unenforceable, because Mang Telmo’s place is not the proper place to make a promise
c. Enforceable, because this is not covered by the Statute of Frauds
d. Enforceable, and therefore A may compel B to marry her
c. Enforceable, because this is not covered by the Statute of Frauds
Statute of Frauds (must be in writing to be enforceable) - An agreement in consideration of marriage, OTHER THAN MUTUAL PROMISE TO MARRY.
- A is indebted to B in the amount of P50,000, with C as guarantor. On due date, A tendered payment to
B but B refused. Because of B’s refusal A deposited the amount in court. After the approval of the
consignation, A withdraws the money with the consent of B and C. Which is correct?
a. B lost the right to collect as A’s obligation is extinguished
b. B lost all the preference she might have over the amount deposited but C is still liable as
guarantor
c. B lost the right to collect from A and consequently lost also her right to collect from C
d. B lost all the preference she might have over the amount deposited and C as guarantor was
likewise released from liability.
b. B lost all the preference she might have over the amount deposited but C is still liable as
guarantor
- A delivered to B the following instrument:
In payment of a gambling debt, A made a promissory notes which reads: “l promise to pay to B P10,000
Sgd. A.” B indorsed the note in blank before maturity and delivered it to C for value. When due, A
refused to pay and C sued B. Could C recover from B?
a. No, C could not sue B because B did not write the name of C as indorsee
b. No, the instrument is not negotiable and B is a mere assignor of credit
c. Yes, provided C gives notice of dishonor to B otherwise B is discharged from liability
d. Yes, the endorsement will be considered as an assignment, hence B will be liable as an
assignor of the instrument - Using the preceding number, but the note is in payment of merchandise purchased by A from B and A
failed to pay due to insolvency. Could C collect from B?
a. No, C could not sue B because B did not write the name of C as indorsee
b. No, the instrument is not negotiable and B is a mere assignor of credit
c. Yes, provided C gives notice of dishonor to B otherwise B is discharged from liability
d. Yes, the endorsement will be considered as an assignment, hence B will be liable as an assignor
of credit
- d. Yes, the endorsement will be considered as an assignment, hence B will be liable as an
assignor of the instrument - b. No, the instrument is not negotiable and B is a mere assignor of credit
Which phase most accurately completes the statement — If at the time the contract of sale is
perfected, the thing which is the object of the contract has been entirely lost
a. The buyer bears the risk of loss
c. The seller bears the risk of loss
b. The contract shall be without any effect
d. The buyer may withdraw from the contract
b. The contract shall be without any effect
- A was the registered owner of a passenger jeepney which was involved in a collision accident with a
delivery truck, resulting in the death of three passengers and injuries to four. At the time of the
accident, A was legally married to B but was cohabiting with C in a relationship akin to that of
husband and wife. The heirs of the dead passengers and the injured persons sought to recover
damages. Which of the following is correct?
a. The liability of A for damages will be on the basis of culpa contractual
b. The liability of A for damages will be on the basis of quasi-delict
c. B is liable to the same extent as A because she is also the owner of the passenger jeepney
d. C is not liable, as the paramour of A, C is not a co-owner.
d. C is not liable, as the paramour of A, C is not a co-owner.
- The liability of judgment debtor A under an obligation imposed by a final judgment is to pay Php
10,000 but A and the judgment creditor B, subsequently entered into a contract reducing the liability
of A to only Php 8,000. Which of the following is correct?
a. There is an implied novation because the existing obligation is extinguished
b. Novation results in the extinguishment of an existing obligation and a new one is substituted in its
place.
c. The payment by C of the reduced amount was the result of the new obligation
d. The agreement to reduce the judgment debt to Php 8,000 completely extinguished the judgment
debt and released A from his pecuniary liability.
b. Novation results in the extinguishment of an existing obligation and a new one is substituted in its
place.
In corporations, where shall election contests be filed?
Regional Trial Court designated as a special commercial court.
Philippine Competition Act is RA No.?
RA 10667
Under SEC Ruling, what is the treatment/classification of treasury shares declared as dividends?
a. Property dividend
b. Stock dividend
c. Cash Dividend
A. Property dividend
Property dividend by law
Stock dividend by accounting
According to SEC ruling, what is the nature of subscription contract?
a. Divisible
b. Indivisible
b. Indivisible
It is also a consensual contract.
Where are derivative suits filed?
a. SEC
b. RTC
c. Either RTC or SEC
b. RTC
Which statement is true?
1 - A stock corporation may be converted into a non-stock corporation by mere amendment of AoI
2 - A non-stock corporation may be converted into a stock corporation by mere amendment of AoI
1 - A stock corporation may be converted into a non-stock corporation by mere amendment of AoI
How may a non-stock corporation be converted into a stock corporation?
By dissolution and forming a new corporation only.
Who has the authority to break deadlock in a close corporation?
SEC upon petition of a SH. SEC shall appoint a PROVISIONAL DIRECTOR, who is neither a SH nor creditor, but shall have all the rights and powers of duly elected director of a close corporation.
What is the required vote for the incorporation of religious society as a corporate aggregate?
At least 2/3 of its membership
Intracorporate disputes and petitions for rehabilitation or liquidation of an insolvent corporation shall be initially filed before the?
RTC designated by the SC as Special Commercial Court
What is the status of a contract entered into by a foreign corporation doing business in the Philippines without the necessary license?
Voidable but remaining to be valid until annulled.
Which type of corporation is not required to submit its bylaws to the SEC?
OPCs
Unless provided by special laws, what is the minimum authorized capital stock of a one person corporation?
No minimum authorized capital stock
Unless provided by special laws, what is the minimum paid-up capital of a one person corporation?
No minimum paid up capital
How may a single stockholder of an OPC change its nominee and alternate nominee?
By submission to the SEC of the names of the nominees, no need to amend AoI
D orally borrowed P1,000 cash from C evidenced with conventional interest of 1% per month. In order to secure the said loan, P orally pledged and delivered
the cellphone of D to C. Aside from that, G orally guaranteed the contract of loan of D to C. Among the agreements entered into, which is valid?
a. Contract of loan and contract of guaranty
b. Contract of loan and contract of pledge
c. Contract of guaranty and agreement to pay interest
d. Contract of pledge and contract of guaranty
a. Contract of loan and contract of guaranty
Validity ang tanong, Contract of:
Loan - valid kay consensual
Interest - SoF, interest to be valid must be in writing
Pledge - P, 3rd person ang nag pledge ng phone?
Guaranty - valid but unenforceable
A, B and C wrote a promissory note which states “I promise to pay P60,000 to D
and E.” At the maturity date of the note, E indorsed back the promissory note to
C. Afterwards, B become insolvent. How much may C collect from A?
a. P10,000
b. P20,000
c. P15,000
d. P30,000
c. P15,000
On January 1, 2021, S sold and delivered a 100-square meter lot to B at a selling
price of P1,000 per square meter. On July 1, 2021, B discovered that the actual
area is only 91 square meter. What legal remedy is available to B?
a. Action quanti minoris or proportionate reduction of price
b. Action for cancellation of sale
c. Either a or b
d. Neither a nor b
d. Neither a nor b
??? Not sure, clarify pls
12.A, B, C and D wrote a promissory note which states “We promise to pay P12,000
to E, F or G, solidary creditors.” A voluntarily paid P12,000 to E without the
knowledge of B, C and D. How much may A ask for reimbursement from B?
a. P1,000
b. P2,000
c. P3,000
d. P4,000
a. P1,000
13.D borrowed P100,000 cash from C. Despite repeated demands from C on or after
maturity date of the loan, D refused to pay the obligation. This prompted C to
file a civil action to collect a sum of money against D before the trial court which
ruled in favor of C. Upon the motion of C, the trial court issued a writ of
attachment to execute the judgment debt. The sheriff attached the specific
laptop of D. This prompted D to sell the said laptop to B. Aside from that, D sold
his specific cellphone to A. Which contract of sale is rescissible?
a. Contract of sale of specific cellphone to A
b. Contract of sale of specific laptop to B
c. Both a and b
d. Neither a nor b
c. Both a and b
- Which of the following obligations is immediately demandable?
a. Obligation in diem
b. Obligation ex die
c. Obligation when debtor’s means permits him to do so
d. Obligation with a suspensive condition
a. Obligation in diem
16.Which type of obligation may be compelled by civil action for specific
performance in case the debtor defaulted in the performance of obligation?
a. Real obligation
b. Personal obligation
c. Both a and b
d. Neither a nor b
a. Real obligation
17.Which of the following documents may become the subject matter of reformation
of instrument?
a. Notarial last will and testament
b. Holographic last will and testament
c. Donation inter vivos wherein a simple condition is imposed
d. When the real agreement is void
c. Donation inter vivos wherein a simple condition is imposed
19.Which of the following instances will not create a rebuttable presumption that
the sale with a right to repurchase is an equitable mortgage?
a. When the price of a sale with right to repurchase is inadequate
b. When the vendor remains in possession as lessee or otherwise
c. When the purchaser retains for himself a part of the purchase price
d. When the vendor binds himself to pay the taxes on the thing sold
a. When the price of a sale with right to repurchase is inadequate
- What is the prescriptive period of filing civil action based on solutio indebiti?
a. Four years
b. Five years
c. Six years
d. Ten years
c. Six years
26.Which of the following obligations may become the subject matter of legal
compensation?
a. Obligation of a depositary in a contract of deposit
b. Obligation of a bailee in a contract of commodatum
c. Obligation of a person arising from crime
d. Obligation of a borrower in a contract of mutuum
d. Obligation of a borrower in a contract of mutuum
29.In which type of waiver of warranty against eviction is the seller still liable in
case of eviction?
a. Waiver consciente
b. Waiver intentionada
c. Waiver whereby the buyer acted in bad faith
d. Waiver whereby the seller acted in good faith
a. Waiver consciente
36.Which of the following contracts must be in a public instrument to be valid and
enforceable?
a. Contract of sale of land by an agent in the name of the principal
b. Contract of lease of real property for a period longer than one year
c. Contract of antichresis over an agricultural land
d. Contract of donation of house and lot
d. Contract of donation of house and lot
- Which type of accessory contract is not allowed to secure future obligations?
a. Contract of pledge
b. Contract of chattel mortgage
c. Contract of real estate mortgage
d. None of the above
b. Contract of chattel mortgage
39. Which of the following is allowed to become the subject matter of a contract of sale? a. Patrimonial property of the state b. Future inheritance c. Vain hope d. National park
a. Patrimonial property of the state - means property owned by the State that is not devoted to public use, public service or to the development of the national wealth
40.Which of the following is not an implied warranty of assignor in contract of assignment of credit? a. Existence of credit b. Solvency of debtor c. Legality of debt d. None of the above
b. Solvency of debtor
- Which of the following contracts is generally perfected by mere consent?
a. Contract of sale of building
b. Contract of donation of car worth P100,000
c. Contract of antichresis involving an agricultural land
d. Contract of pledge of laptop
a. Contract of sale of building
50.Which of the following instances will not make an obligation with a suspensive
period due and demandable?
a. When the debtor attempts to abscond
b. When through a fortuitous event the guaranties or securities after their
establishment were impaired, unless the debtor immediately gives new
one equally satisfactory
c. When the debtor does not furnish to the creditor the guaranties or
securities which he has promised
d. When the debtor violates any undertaking, in consideration of which the
creditor agreed to the period
b. When through a fortuitous event the guaranties or securities after their
establishment were impaired, unless the debtor immediately gives new
one equally satisfactory
55.In a contract of mortgage, who is entitled to excess arising from the foreclosure
sale of collateral?
a. Always mortgagor
b. Always mortgagee
c. Generally mortgagor unless expressly granted to mortgagee
d. Generally mortgagee unless expressly granted to mortgagor
c. Generally mortgagor unless expressly granted to mortgagee
57.In Pacto De Retro Sale of real property, what is the default period for the exercise of right of repurchase? a. Four years b. Ten years c. Thirty days d. Six months
a. Four years
DEFAULT - 4 YEARS
MAXIMUM - 10 YEARS
STIPULATION IN EXCESS OF 10 YEARS IS VOID, TAPOS ANG ENDING IS 10 YEARS.
58.In case the purchased animal dies of disease, which of the following is not an
essential requisite for the seller to be liable?
a. The animal dies within 3 days from the date of purchase.
b. The disease is redhibitory.
c. The disease exists at the time of sale.
d. The disease is the cause of death of animal.
b. The disease is redhibitory.
When is a vendor liable in case the animal dies of disease?
Requisites:
1. Disease existed at time of sale
2. Disease is the cause of death
3. Animal dies within 3 DAYS from the time of purchase.
78.D is indebted in the amount of P100,000 to C as evidenced by a written contract
of loan. The contract provides for 6% interest per annum and 10% penalty in
case of breach of contract. At the date of maturity of the loan, D defaulted.
Which of the following statements is correct?
a. C may only demand payment of the 6% interest in addition to the
principal because the law presumes that the interest already covers the
penalty.
b. C may only demand payment of the 10% penalty in addition to the
principal because in obligation with penal clause, the penalty substitutes
for the interest and damages.
c. C may demand payment of both 6% interest and 10% penalty in addition
to the principal only if he can prove that D acted fraudulently.
d. C may validly demand payment of both 6% interest and 10% penalty in
addition to the principal.
d. C may validly demand payment of both 6% interest and 10% penalty in
addition to the principal.
80.D borrowed P10,000 cash from C. They agreed that D will pay C when his means
permits him to do so. What is the classification of this obligation?
a. Obligation with a suspensive condition
b. Obligation with a resolutory condition
c. Obligation ex die
d. Obligation in diem
c. Obligation ex die
83.On January 1, 2020, D borrowed P100,000 from C with maturity date on July 1,
2020. C send a demand letter to D on April 1, 2020 to extrajudicially ask for the
payment of the loan. When will the legal interest on the loan start to accrue?
a. January 1, 2020
b. April 1, 2020
c. July 1, 2020
d. None of the above
d. None of the above
87.On January 1, 2020, D, a resident of Manila City obliged himself to deliver a 2020
TRD Limited Edition Fortuner to C, a resident of Caloocan City. The maturity date
of obligation is on June 30, 2020. On January 1, 2020, a 2020 TRD Limited Edition
Fortuner is located in Quezon City but another 2020 TRD Limited Edition Fortuner
is located in Pasay City. Where the car be delivered by D to C?
a. Manila City
b. Caloocan City
c. Quezon City
d. Pasay City
a. Manila City
Article 1251. Payment shall be made in the place designated in the obligation.
There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment shall be made wherever the thing might be at the moment the obligation was constituted.
If silent and the undertaking is to deliver a generic thing, the place of payment shall be the DOMICILE OF THE DEBTOR. (Si D, resident of Manila)
In any other case the place of payment shall be the domicile of the debtor.
If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him.
88.D borrowed P10,000 from C. On the date of maturity of the loan, D defaulted on
the payment which prompted C to send a demand letter prepared by a law firm
threatening that if D will not sign the proposed deed of loan with real estate
mortgage involving D’s specific lot, C will file the necessary civil action against D.
As a result of the intimidation, D signed the deed of loan with real estate mortgage.
What legal remedy is available to D involving the contract of loan with mortgage
over his specific lot?
a. File an action for annulment of contract
b. File an action for reformation of instrument
c. File an action for declaration of nullity
d. None of the above
d. None of the above
91.S, a heavily indebted but solvent person, orally sold his specific condominium unit
to B at a price of P1,000,000. At the date of oral agreement, B paid P50,000 arras
money. Their oral agreement provides that delivery will of the unit will be done
after 15 months. What is the status of contract of sale?
a. Valid and binding
b. Rescissible
c. Voidable
d. Unenforceable
a. Valid and binding
94.When is prior valid tender of payment mandatory for consignation to be justifiable?
a. When two or more persons claim the same right to collect the subject
matter of the obligation
b. When, with legal cause, the creditor refuses to give a receipt
c. When the creditor is insane at the time the payment is due
d. When the certificate evidencing the credit has been lost
b. When, with legal cause, the creditor refuses to give a receipt
95.On January 1, 2020, D obliged himself to deliver a specific car to C with maturity
date on July 1, 2020. On August 1, 2020, the said car was forcibly taken by robbers
who employed force and intimidation against D. Is the obligation of D
extinguished?
a. Yes because no one is liable for fortuitous event.
b. Yes because the subject matter is a generic thing.
c. No because the loss occurred after D incurred delay.
d. No because robbery is not a fortuitous since it is not an Act of God.
a. Yes because no one is liable for fortuitous event.
- In obligation to deliver a specific thing, when does the creditor obtain
personal right over the fruits of the determinative thing?
a. From the time of perfection of obligation
b. From the time the obligation to deliver the determinate thing arises
c. From the time the determinate thing is actually or constructively delivered
to the creditor
d. From the time the fruits of the determinate thing are actually or
constructively deliver to the creditor
b. From the time the obligation to deliver the determinate thing arises
What is the nature of the responsibility or liability of 2 or more officious managers in a negotiorum gestio?
Generally, they shall be solidary liable UNLESS the management was assumed to save the thing or business from imminent danger, which makes their liability joint only.
Which of the following documents may become the subject matter of action for reformation of
instrument?
a. Equitable mortgage
b. Holographic will
c. Notarial will
d. Simple donation inter vivos wherein no condition is imposed
a. Equitable mortgage
- What is the period for the exercise of right of redemption in case the mortgagee is a bank while the
mortgagor is a juridical person?
a. Within three months from the foreclosure sale
b. Within 1 year from the foreclosure sale
c. Within a period not less than 90 days but not more than 120 days from foreclosure sale
a. Within three months from the foreclosure sale
- What is the nature of contract of antichresis as to the perfection?
a. Real contract
b. Formal contract
c. Consensual contract
d. Legal contract
b. Formal contract
Antichresis must be in writing for its validity
Who shall be liable to pay the real property tax and assessment on a subdivision lot or condominium
unit before passage of title to the buyer?
a. Developer subject to reimbursement from the buyer
b. Developer without right of recourse from the buyer
c. Buyer of the unit
d. Developer and buyer equally
b. Developer without right of recourse from the buyer
What is the prescriptive period for filing a legal action for breach of sale of an immovable by reason of lacking of area? a. 40 days from the date of delivery b. 3 days from the date of delivery c. 6 months from the date of delivery d. 1 year from the date of delivery
c. 6 months from the date of delivery
- In which of the following instances will a pacto de retro sale be presumed to be an equitable mortgage?
a. When the vendee obtains possession of the property.
b. When the buyer binds himself to pay the real property taxes on the thing sold.
c. When the period for the exercise of right of repurchase is extended.
d. When the purchaser fully paid the purchase price.
c. When the period for the exercise of right of repurchase is extended.
A contract of sale with a right to repurchase and other contracts purporting to be an absolute sale, shall be presumed to be an equitable mortgage when:
a. Price of the sale w/ right to repurchase is unusually inadequate
b. Vendor remains possession as lessee or otherwise
c. When the period for the exercise of the right to repurchase is extended
d. When the purchaser retains for himself a part of the purchase price
e. When the vendor binds himself to pay the taxes on the thing sold
f. When the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation.
In the absence of stipulation to the contrary, when shall the juridical personality of the partnership
begin?
a. From the moment the partners have completed their contributions.
b. From the moment of the execution of the contract of partnership.
c. From the moment of submission with the SEC of the Articles of Co-Partnership.
d. From the moment the SEC issues the Certificate of Registration of Partnership.
b. From the moment of the execution of the contract of partnership.
A partnership is a contract of two or more persons who bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits among themselves. Two or more persons may also form a partnership for the exercise of a profession. It is both a CONTRACT and a BUSINESS ORGANIZATION. It is a JURIDICAL ENTITY which has a personality DISTINCT FROM THAT OF EACH OF THE PARTNERS.
It BEGINS FROM THE MOMENT OF THE EXECUTION OF THE CONTRACT, unless otherwise stipulated.
In the absence of partnership agreement, when shall juridical personality of the partnership begin?
From the moment SEC issues the Certificate of Registration
Which of the following modes will not automatically dissolve a general partnership?
a. Death of a partner
b. Withdrawal or retirement of a partner
c. Insanity of a partner
d. Insolvency of a partner
c. Insanity of a partner
Not automatic dissolution - those that need to be proven in court such as:
- Partner has been declared insane in judicial proceeding
- Partner becomes in any way incapable of performing his part in the partnership contract
- Partner is guilty of such conduct as tend to affect prejudicially the carrying on of business
- Partnership can only be carried at a loss
- Other circumstances that render a dissolution equitable
- Which of the following best describes the strong juridical personality of a private corporation?
a. Limited liability rule
b. Separate entity theory
c. Business judgment rule
d. Right of succession
d. Right of succession
- Which type of corporation obtains juridical personality despite non-filing of articles of incorporation
before Securities and Exchange Commission?
a. Ostensible corporation
b. De facto corporation
c. Corporation by estoppel
d. Corporation by prescription
d. Corporation by prescription
As a general rule, what is the maximum surplus profits that can be retained by a stock corporation?
a. 100% of legal capital
b. 100% of paid up capital
c. 100% of subscribed capital stock
d. 100% of authorized capital stock
b. 100% of paid up capital
Wala na under CREATE??
- What is the required vote for the approval of management contract when there is interlocking directors
between the managing and managed corporation?
a. At least majority of the board of directors with ratification of at least 2/3 of the stockholders for
both managing corporation and managed corporation.
b. At least majority of the board of directors with ratification of at least majority of the stockholders
for both managing corporation and managed corporation.
c. At least majority of the board of directors with ratification of at least 2/3 of the stockholders for
managing corporation and at least majority of the board of directors with ratification of at least
majority of the stockholders for managed corporation.
d. At least majority of the board of directors with ratification of at least 2/3 of the
stockholders for managed corporation and at least majority of the board of directors
with ratification of at least majority of the stockholders for managing corporation.
d. At least majority of the board of directors with ratification of at least 2/3 of the
stockholders for managed corporation and at least majority of the board of directors
with ratification of at least majority of the stockholders for managing corporation.
What are the obligations of the agent?
Different scenarios and different obligations for the agent:
1. Obligations of an agent who declines agency - he is bound to observe diligence of a good father of a family in the custody and preservation of the goods forwarded to him by the owner
- Obligations, IN GENERAL, of a person who accepts an agency -
a. To carry out the agency
b. To be liable for damages which, through his non-performance, the principal may suffer.
c. To finish the business already begun on the death of the principal, should delay entail any danger. - SPECIFIC OBLIGATIONS OF AN AGENT
A. To advance the necessary funds if there was a stipulation to that effect, except when the principal is insolvent
B. To act in accordance with the instructions of the principal in the execution of the agency, and in the absence thereof, he shall do all that a good father of a family would do as required by the nature of the business.
C. Not to carry out the agency if its execution would manifestly result in loss or damage to the principal
D. To be liable for damages if there being a conflict between his interest and that of the principal, he should prefer his own
E. Not to borrow money for the principal without the principal’s consent, if the latter has authorized him to lend the principal’s money at interest
F. To render an accounting of his transactions and to deliver to the principal whatever he may have received by virtue of the agency, even though it may not be owing to the principal. Any stipulation exempting the agent from the obligation to render an account shall be void.
G. Agent’s liability when he appoints a substitute
a. Agent is not prohibited to appoint a substitute - agent may appoint a substitute and he shall be responsible for the acts of the substitute, and the principal may furthermore bring an action against the substitute with respect to the obligations which the latter has contracted.
b. Agent is authorized to appoint a substitute
1. If the principal did not designate the person as a substitute - agent shall be liable if the substitute he appointed is notoriously incompetent or insolvent and the principal may bring action against the substitute
- Agent is not liable if the substitute is not notoriously incompetent or insolvent.
c. Principal designated the substitute - agent is not responsible for substitutes act.
d. Agent is prohibited to appoint a substitute - all acts of the substitute shall be void.
H. Liability of two or more agents if they have been appointed simultaneously.
I. To be liable for interest on the sums the agent has applied to his own use
J. Agent’s liability if he contracts in the name of the principal
K. To be responsible not only for fraud, but also for negligence which shall be judged with more or less rigor by the courts depending on whether the agency was for compensation or not.
