1. Which is the operative act that will give juridical personality upon a corporation?

A. The filing of the articles of incorporation.

B. The filing of the by-laws.
C. The issuance of the certificate of incorporation.
D. The execution by the incorporators of the articles of incorporation, which serves as the contract among
themselves.

9. 1st Statement In alternative obligations, the choice shall produce no effect except from the moment it has
been communicated.
2nd Statement - In facultative obligations, the creditor may have the right to choose the substitute in lieu of
the principal obligation.
A. Both statements are wrong.
C. 1st statement is correct, 2nd statement is wrong.
B. Both statements are correct.
D. 1st statement is wrong, 2nd statement is correct

2. Which of the following is non-negotiable?

A. I promise to pay to the order of Mr. A the sum of P10,000 at the Banco De Oro Manila;
B. I promise to pay to the order of X the sum of P10,000 or to deliver one-fourth of the harvest in my farm
at his option
C. I promise to pay Y or bearer in Manila the sum of P 10,000 10 days before death of his horse Petra
D. I promise to pay Z or bearer in Manila the sum of P 10,000 on or before November 15, 2012.

10. To call a meeting for the purpose of removing a director of a corporation the required votes of the
stockholders is:
A. majority of the stockholders present
B. of the outstanding capital stock
C. 2/3 of the outstanding capital stock
D. majority of the outstanding capital stock

3. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in:
A. sale on approval
B. sale on return
C. sale on trial
D. contract to sell

11. Not a valid qualification of directors in a stock corporation as stated in the by-laws:
A. A director must be holder of at least P10,000 paid up shares as security for his action
B. A stipulation that at least 2/3 of the directors must be residents of the Philippines
C. A stipulation that all the shares he owns at the time he was elected as director may be disposed
off by him without forfeiting his directorship
D. That 5 shares of the capital stock must be registered in the name of such director

4. Kenneth uses a savings account with a BDO bank. The contract between Kenneth and the bank is one of:
A. Agency.
B. Commodatum.
C. Deposit.
D. Simple loan.
5. One of the following is a similarity between real estate mortgage and antichresis. Which is it?
A. The property is delivered to the creditor
B. The subject matter is a real property
C. The creditor acquires the right to receive the fruits of the property
D. The creditor is obliged to pay the taxes and charges upon the estate
6. 1st Statement The guardian cannot purchase the property of the ward and any stipulation to the contrary
is void.
2nd Statement Sale of property between husband and wife is unenforceable if orally constituted unless
there is a judicial separation of property.
A. 1st statement is wrong, 2nd statement is correct
B. 1st statement is correct, 2nd statement is wrong.
C. Both statements are correct
D. Both statements are wrong.
7. One centavo, P0.05, P0.10 and P0.25 centavo coins are legal tender up to:
A. P100.00
B. P500.00
C. P1000.00
D. Any Amount
8. 1st Statement If the authority is to lease a building to third persons for at least one year, a special
power of attorney is necessary.
2nd Statement The authority to sell a property in behalf of the principal does not include the authority to
mortgage.
A. 1st statement is wrong, 2nd statement is correct
C. Both statements are correct
B. 1st statement is correct, 2nd statement is wrong.
D. Both statements are wrong

12. Which of the following is not negotiable?

A. Pay to A or order P10,000 notice of dishonor waived
B. Pay to A or order P10,000 on December 25, 2015
C. Pay to A or order P10,000 or deliver two piglets at the option of the holder
D. Pay to A or order P10,000 in US dollars on October 1, 2015
13. Anything paid or delivered before the arrival of a period can be recovered by the debtor who paid by mistake
up to the extent of:
A. interest
B.
without interest
C. interest and fruits
D.
may not be recovered
14. Statement No. 1 An oral agreement to answer all expenses for the wedding reception if Tom marries
Jenny is unenforceable.
Statement No. 2 An oral contract of sale of a land is void.
A. False, false.
C. True, true
B. False, true.
D. True, false
15. The buyer will acquire what rights to the fruits of the things bought?
A. Personal right from the time of perfection and real right from the time the fruits arise
B. Personal right from the obligation to deliver arises and real right from the time the fruits arise
C. Personal right from the time the fruits arise and real right upon delivery
D. Personal right from the time of perfection and real right upon delivery
16. Which of the following statements is false?
A. Non stock corporations can have more than 15 trustees at one given time
B. Trust companies can be close corporations

C. Educational corporations cannot issue no par value shares

D. No par value shares cannot be issued for a consideration less than five pesos per share
17. The instrument is discharged in the following instances except one?
A. Intentional cancellation of the instrument by the holder.
B. Payment by party primarily liable to holder or his authorized representative.
C. Voluntary surrender of the instrument by the holder to the maker without collecting.
D. Payment by maker of a promissory note before maturity date.
18. The following, except one, are valid considerations in a subscription agreement relative to the stocks of a
corporation:
A. Intangible property
B. Previous corporate obligations
C. Outstanding shares in exchange for stocks in the event of reclassification or conversion.
D. Promissory notes
19. I promise to pay to bearer, Janine, the sum of P200,000.00(Sgd) Nicole. The promissory note is:
A. Negotiable promissory note payable on demand.
B. Negotiable promissory note payable to order.
C. Negotiable promissory note payable to bearer.
D. Non-negotiable.
20. 1st Statement The acceptor of a bill may refuse to pay the holder on the ground that the signature of the
drawer is forged.
2nd Statement An instrument is not negotiable if it is payable to the order of a fictitious person.
A. 1st statement is wrong, 2nd statement is correct
B. 1st statement is correct, 2nd statement is wrong.
C. Both statements are correct
D. Both statements are wrong.
21. These statements are presented to you:
I. A quasi-contract is an implied contract.
II. Acquittal in the criminal case will excuse the accused from civil liability.
A. 1st statement is wrong, 2nd statement is correct
B. 1st statement is correct, 2nd statement is wrong.
C. Both statements are correct
D. Both statements are wrong.

24. A, B and C secured a loan from D. The promissory note which evidence the obligation states; I promise
to pay D or order P10,000 payable on demand (sgd) A B C. The obligation is:
A. Solidary
B. Divisible
C. Indivisible
D. Joint
25. The right of pre-emption differs from the right of redemption in that in pre-emption:
A. The action is directed against the buyer.
B. The action is directed against the seller.
C. The right arises after the sale.
D. There can be a rescission of the original sale.
26. Which of the following is not a requisite for a valid novation?
A. A previous valid obligation
B. Capacity and intention of parties to modify the obligation
C. Creation of new valid obligations
D. It must comply with the forms of donations
27. A, B and C executed a promissory note worded as follows:
We do hereby jointly and severally promise to pay to the order of creditors L, M and N the sum of
P90,000
How much can L collect from A?
A. P 30,000
B. P 90,000
C. P 10,000
D. P 45,000
28. Ill give you a diamond ring if you will go to Hong Kong Disneyland this year. This obligation is:
A. Void
B. Valid
C. Rescissible
D. Voidable
29. Which of the following is excluded in the determination of liability arising from criminal offenses:
A. Subrogation
B. Restitution
C. Reparation
D. Indemnification
30. Mode of extinguishing obligation wherein the factor is the generosity of the creditor and the acceptance of
the debtor:
A. Compensation
B. Novation
C. Confusion
D. Condonation
31. The duty to pay taxes and to support ones family are classified as:
A. Civil obligations
C. Legal obligations
B. Natural obligations
D. Conventional obligations

22. Dustin is obligated to deliver his laptop to Adrianne on December 20, 2014. The burden in this scenario is:
A. To give
B. To do
C. Not to do
D. Either A or B

32. In facultative obligations, if substitution has been made, which of the following is false?
A. The obligation is extinguished
B. The loss of the original prestation is immaterial
C. The obligation is converted into a simple obligation
D. The obligation ceases to be facultative

23. Jensie, Rez, Christine and Rushnell, solidary debtors are obliged to give Arli, Ruth, Wayne, Mark and Josh,
joint creditors, P20,000. In this case:
A. Arli may collect from Rez P20,000
B. Arli may collect from Rez P4,000
C. Arli may collect from Rez P5,000
D. Arli may collect from Rez P1,000

33. 1st Statement - The receipt of a later installment of a debt without reservation as to prior installments, shall
give rise to a disputable presumption that such installments have been paid.
2nd Statement - If a taxpayer pays his income tax liability for the current year, there is a presumption that
tax liability for the previous year has been paid.

A.
34.

True, true

B.

True, false

C.

False, true

D. False, false

1st Statement The indivisibility of an obligation does not necessarily results to solidarity
2nd Statement If the suspensive condition depends upon the will of a third person, the obligation subject
to it is void.
A. 1st statement is true, 2nd statement false
B. Both statements are false
C. 1st statement false, 2nd statement true
D. Both statements are true

35. The following are the liabilities of an acceptor except one:

A. The existence of a drawer
B. The capacity of the drawer
C. The genuineness of the drawers signature
D. The existence of valid consideration
36. Alberto and Berlin entered into a universal partnership of all present property. Subsequently, Alberto,
inherited a parcel of land from his father. Will the land and its fruits belong to the partnership?
A. Yes, because universal partnership means contribution to all properties, present and future
B. Yes, if there was stipulation that the land to be inherited shall be considered contributed
C. No, because the land and fruits are future properties, not existing at the time of the celebration of the contract
D. No, even if so stipulated that land inherited shall be considered contributed
37. When the fulfillment of the condition depends upon the sole will of the:
A.
debtor but it is resolutory, the obligation is valid
B.
debtor but it is suspensive, the obligation is valid
C.
creditor even if it is suspensive, the obligation is void.
D.
debtor, it is always void
38. A makes a note payable to B or order. The following are the indorsers of the note in the order of their
indorsements: B,C,D,E,F (holder) and G (subsequent holder.) The note is dishonored in the hands of F, who
notifies B, C, D and E. Which is not correct?
A. the notice given by F to B operates to the benefit of C, D, E and G
B. the notice to C insures to the benefits of D, E and G
C. the notice to C insures to the benefits of B
D. the notice to D insures to the benefits of E and G
39. Obligations under quasi-contracts will prescribe after:
A. 10 years
B. 6 years
C. 5 years
D. 4 years
40. True or False
Statement 1: In chattel mortgage, the mortgagor must execute an affidavit of good faith in order that the
mortgage shall be valid against third persons

Statement 2: To lease real property to another person, the authority of the agent must be in a special power of
attorney if the lease is for one year.
Statement 3: The agent if authorized to borrow money can be the lender, but generally he cannot be the borrower
if he is authorized to lend.
A. True, False, True
C. False, False, True

B. True, True, False

D. False, True, True

41. The stage of conception of a contract, is;

A.
when the parties come to an agreement
B.
when the contract is fully executed
C.
when there is a meeting of the parties minds
D.
when negotiations are in progress.
42. True or False:
Statement 1: As a general rule, a limited partners interest is not assignable.
Statement 2: A limited partner may rightfully demand return of his contribution on the dissolution of a
partnership.
A.
B.
C.
D.

1st statement is true, 2nd statement false

Both statements are false
1st statement false, 2nd statement true
Both statements are true

43. An unpaid sellers right to resell the goods is available in the following cases, except:
A.
If the goods are of perishable nature
B.
When the seller reserved the right to resell the goods
C.
When the buyer has defaulted in the payment of the price for an unreasonable time
D.
When the seller has lost lien on the goods.
44. A pledge is extinguished through the following cases except;
A.
Return of the thing pledged
B.
Written abandonment of the pledge
C.
Appropriation of the thing pledged after the thing is not sold at one public auction
D.
Sale of the thing pledged
45. Which of the following statements relating to treasury shares is false?
A.
They are not considered outstanding shares
B.
They carry the right to vote
C.
They may be disposed at any time
D.
They are not entitled to dividends
46. Robin, the payee of a check for P5,000 cashes it with a drawee bank on January 3, 2015, but the teller
gives him P6,000. Robins duty to return the excess of P1,000 to the bank is an obligation arising from:
A.
Quasi-Delicts
B. Law
C. Contract
D. Delicts

47. Ruth, JM and Dustin are solidary liable to Mark for P30,000. Ruth pays Mark the whole amount due.
Dustin, however, is insolvent. Which of the following is correct?
A.
Ruth can collect from JM, P15,000
B.
Ruth can collect from JM, P10,000
C.
Ruth can demand the return of P10,000 from Mark pertaining to Dustins share since Dustin is
insolvent
D.
Ruth alone will bear the payment of Dustins share who is insolvent since Ruth made the payment.
48. True or False;
I.
An instrument originally payable to order may be converted into a bearer instrument.
II.
An instrument originally payable to bearer may be converted into an order instrument.
A. 1st statement is true, 2nd statement false
B. Both statements are false
C. 1st statement false, 2nd statement true
D. Both statements are true
49. Adrianne made a promissory note payable to Janine or bearer. After delivery, Janine indorsed the note to
Paul. Jensie stole the note and negotiated it to Shemrel by forging Pauls signature. Thereafter, Shemrel
indorsed the note to Silver and Silver to Jeff, a holder in due course. Which of the following defenses are
available to Adrianne, Janine and Paul against Jeff?
I.
Forgery of Pauls signature
II.
Want of delivery of note by Paul since the note was stolen from him
A. I only

B. II only

C. both I and II

D. neither I nor II

50. The price stipulated by the parties to a mortgage contract below which the property shall not be sold at a
public auction
A. Upset price
B. Acquisition Price
C. Market Price
D. Selling Price