RDC Review School of Accountancy

2nd Floor, Dynasty Building, Zamora St., Tacloban City

Contact No. 0939-345-2261
FB page: RDC Professional Development Center – Real Page

FIRST MOCKBOARD IN RFBT

1. This special form of payment is the conveyance of the ownership of a thing as accepted equivalent of
performance.
a. Dacion in payment or dacion en pago
b. Assignment of property or cession in pago
c. Application of payment
d. Tender of payment and consignation
2. X sold his car to Y for P50,000. No date was fixed for the performance of the obligation of the seller
and the buyer. The obligation of X is:
a. To deliver the car immediately because the sale is a perfected contract.
b. To deliver the car only after Y write to X demanding the delivery of the car
c. To deliver the car after Y pays X the P50,000.
d. To rescind the contract because there is no time fixed for the delivery.
3. Unless there is stipulation to the contrary, the expenses for the execution or registration of the sale
shall be born by:
a. The vendee
b. The vendor
c. The vendee and the vendor
d. The agent or broker
4. When there is concurrence of the offer and acceptance, there is:
a. Payment
b. Consent
c. Acceptance
d. Revocation
5. When the object of the contract is outside the commerce of man, the contract is:
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
6. A private corporation organized under the corporation law commences to have corporate existence
and juridical personality and is deemed incorporated from:
a. The date when the Articles of Incorporation is signed by the incorporators
b. When the Articles of Incorporation and by-laws are presented and received by the Securities and
Exchange Commission and the filing fee is paid
c. From the date the SEC issues a certificate of incorporation under its official seal
d. When the Articles of Incorporation is notarized by a Notary Public

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 7. The following are the qualifications of incorporators. Choose the exception
a. Majority of whom must be Filipino
b. Majority of whom are residents of the Philippines
c. All are of legal age
d. Natural persons not less than five but not more than 15
8. For corporation governed by special laws, aside from the requirements specified under the
corporation laws, in order that their Articles of Incorporation may be approved or accepted, they must
present before the Securities and Exchange Commission:
a. A favorable recommendation from the Department of Finance
b. A copy of previous income tax return and a statement of assets, liabilities and net worth
c. A favorable recommendation of the appropriate government agency to the effect that such article
or amendment is in accordance with law.
d. An undertaking to change the name of the corporation if they are already registered with the SEC a
name or a name similar to the name of the corporation.
9. The following are qualifications of a director in a corporation. Choose the exception:
a. Majority of the directors must be Filipino Citizens
b. He must own at least one share of the stock in his name
c. Majority of the corporate directors must be residents of the Philippines
d. He must not have been convicted by final judgment of an offense carrying an imprisonment
exceeding six years or an offense constituting a violation of the Corporation Code.
10. The secretary of a stock corporation shall be:
a. A director of the corporation
b. An incorporator of the corporation
c. A resident and citizen of the Philippines
d. Of legal age and citizen of the Philippines
11. May contribute money, property or industry to a common fund.
a. Both general and limited partners
b. Limited partners
c. General partners
d. Capitalist partners
12. One who takes charge of the winding up of partnership affairs upon dissolution
a. Silent partner
b. Ostensible partner
c. General partner
d. Liquidating partner
13. Which of the following is not a rule in the interpretation of contracts?
a. If some stipulation of any contract should admit of several meanings, it shall be understood as
bearing that import which is most adequate to render the contracts effectual
b. Words which may have different significations shall be understood in that which is most in keeping
with the nature and object to the contract.

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 c. In order to judge the intention of the contracting parties, their contemporaneous and subsequent
acts shall be principally considered
d. Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless
the debtor proves the contrary.
14. Contracts are effective and binding only between the parties, their assigns and their heirs. Three of the
following enumerations are exceptions as provided by law. Which does not belong to the exception?
a. Where there is a stipulation in favor of third party
b. Where one of the parties to the contract dies and thereafter a suit is filed on the basis of the
contract
c. Where the obligation arising from contract are not transmissible by their nature
d. Where the obligation arising from contract are not transmissible by stipulation or by provision of
law.
15. A and B entered into a universal partnership of all present property. The common property of a the
partnership shall be:
a. All the properties which belonged to each of the partners at the time of the constitution of the
partnership
b. All the properties which shall belong to each of the partners after the constitution of the
partnership
c. 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.
d. All the properties which belong to each of the partners at the time of the constitution of the
partnership as well as properties which each may acquire thereafter.
16. Three of the following enumerations are not authorized to issue no par value shares of stock. Which is
the exception?
a. Insurance companies
b. Industrial companies
c. Public utilities
d. Trust companies
17. A solidary obligation is one in which each of the debtors is liable for the entire obligation or debt, and
each of the creditor is entitled to the entire credit. Obligations shall also be considered solidary under
the following three exceptions. Which does not belong to the exception?
a. When solidarity is expressly stipulated in the obligation.
b. When the prestation is indivisible and there are two or more debtors and creditors.
c. When the law expressly provides solidarity
d. When solidarity is required from the nature of the obligation
18. In order that fraud may make a contract voidable:
a. It may be incidental but should have been employed by both parties
b. It should be serious and the parties must be in pari delicto.
c. It should be serious and should not have been employed by both contracting parties
d. It may be incidental but both parties should not be in pari delicto.

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 19. Which one of the following is not a requisite prescribed by law in order that a partnership may be held
liable to a third party for the acts of one of its partners?
a. The contract must be in the partnership name or for its account
b. The partner binds the partnership by acquiescence for obligations he may have contracted in good
faith.
c. The partner must act on behalf of the partnership
d. The partner must have the authority to bind the partnership.
20. Any stockholder of a corporation shall have the right to dissent and demand payment of the fair value
of his share/s in three of the following corporate acts. Which is the exception?
a. In case of any amendment to the Articles of Incorporation which has the effect of changing or
restricting the rights of any stockholder or class of shares.
b. In case of merger or consolidation
c. In case of sale, lease exchange, transfer, mortgage, pledge or other disposition of all or
substantially all of the corporate assets and the property of the corporation.
d. In case of incurring, creating or increasing bonded indebtedness
21. Which of the following is not a requisite to consider a person an accommodation party?
a. He must not be liable to a holder in due course.
b. He must be a party to the instrument signing as a maker, drawer, acceptor or endorser.
c. He must not receive value therefor.
d. He must sign for the purpose of lending his name or credit.
22. Payment of the obligation by a solidary debtor shall not entitle him to reimbursement from his co-
debtors.
a. If such payment was made before the obligation is due.
b. If such payment was made after the obligation has prescribed or become illegal.
c. If such payment was made in compliance with the demand to him by all the creditors
d. If such payment was made after the obligation has become due and demandable and notice of
payment was made only to him.
23. A and B who are both unemancipated minors entered into a contract. The contract entered into by
and between them is:
a. Rescissible
b. Unenforceable
c. Voidable
d. Void
24. A capitalist partner is engaged for his own account in an operation which if of the kind of business in
which the partnership is engaged. Said partner can be:
a. Compelled to sell his interest in the partnership to the other capitalist partners
b. Compelled to dissolve or discontinue the operation of his business
c. Compelled to bring to the common funds of the partnership any profits accruing to him from his
transactions
d. Denied his share in the profits of the partnership

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 25. A, B and C secured a loan from X. The promissory note which evidences the obligation states: “ I
promise to pay” and signed by A, B and C. The obligations is:
a. Joint
b. Solidary
c. Divisible
d. Indivisible
26. Which of the following contracts cannot be ratified?
a. Those whose cause or object did not exist at the time of the transaction.
b. Unauthorized contracts
c. Those where both parties are incapable of giving consent
d. Those that fail to comply with the Statute of Frauds
27. Consignation is a mode of payment which extinguishes an obligation. Which of the following is not a
requisite for consignation?
a. Actual consignation with the proper judicial authorities
b. Prior notice has not been made
c. Existence of a valid debt
d. There must be prior notice of consignation to persons interested in the fulfillment of the
obligation.
28. The creditor shall have a right to indemnify for damages when, through the fault of the debtor, all the
things which are alternatively the object of the obligation have been lost or compliance of the
obligation has become impossible. The indemnity shall be fixed on the basis of:
a. The value of the least expensive things
b. The value of the most expensive things
c. The value of the last thing which disappeared
d. The value of the first thing which disappeared
29. A, B, and C are solidary debtors of X in the amount of P12,000. X then made a demand from A but was
able to collect P8,000 only because X remitted A’s share of P4,000. How much can A collect from B and
C?
a. P12,000
b. P 8,000
c. P 6,000
d. P 4,000
30. A is indebted to B for P20,000. X is the guarantor of A. B is also indebted to A for P8,000. How much
will X be liable as a guarantor if B sues A and A cannot pay?
a. P12,000
b. P20,000
c. P 8,000
d. X has no liability
31. On October 4, 2017, A is indebted to B for P50,000 for a 20-day period. A proposed to B that X will pay
A’s debt and that A will be free from all liabilities. B and X agree to the proposal. On October 25, 2017,

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 X became insolvent. At the time of delegation, X was already insolvent but this was not known to A.
The insolvency is not of public knowledge. So B sues A on the ground that it was A who made the
proposal that A guaranteed X’s insolvency. Decide.
a. Is liable because he is presumed to have guaranteed X’s insolvency.
b. A is not liable because A does not know the insolvency of X at the time of delegation and neither
was the insolvency of public knowledge.
c. A is liable because he did not exercise due diligence in determining the insolvency of X.
d. A is liable because X agree to the proposal to make himself solidarily liable for the obligation.
32. A and B are joint creditors mancomunados of X and Y, joint debtors, for a total sum of P9,000. A owns
1/3 of the credit and B owns 2/3 of it. But X owns 2/5 of the debts and Y owns 3/5 of the debts. In this
case:
a. B can only collect from X, P5,400 and from Y, P3,600
b. A can only collect from X, P4,500 and from Y, P4,500
c. A can only collect from X, P3,600 and from Y, P5,400
d. B can only collect from X, P9,000 and from Y, P0
33. A, guardian of B, sold B’s house and lot worth P480,000 for P240,000.
a. The contract can be rescinded because of inadequacy of price.
b. The contract cannot be rescinded because there is no fraud, mistake or undue influence.
c. The contract cannot be rescinded because all elements of a contract are present.
d. The contract cannot be rescinded because it is expressly provided by law as one of the contract
which cannot be rescinded.
34. X enters into a contract with Y whereby X sold his land orally to Y. The land has been delivered and the
money has been paid. Is the oral sale of the land valid?
a. The contract is not valid because it is not in writing as required by the Statute of Frauds.
b. The contract is not valid because the contract is not made in a public instrument.
c. The contract is unenforceable.
d. The contract is valid because the contract is already perfected and executed.
35. To defraud his creditors, A contracted with B by selling a land to B. B now seeks to register the land
with the Register of Deeds. X, a creditor of A seeks to prevent registration on the ground that the
contracts is rescindable. Despite X’s objection, may the land be registered on the contract in B’s name?
a. The land cannot be registered based on the contract which is rescindable.
b. The land cannot be registered because the contract is in fraud of the creditor
c. The land can be registered based on the contract because the contract is not yet rescinded.
d. The land can be registered because the contract is valid and can be attached collaterally in a land
registration proceeding.
36. On July 15, 2016, X entered into a contract with Y. On February 10, 2017, X discovered that fraud was
committed at the time he entered into the contract, a fraud that vitiated his consent. The action for
annulment shall be brought:
a. Within three years from the time of the fraud.
b. Within four years from February 10, 2017

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 c. Within four years from the time A entered into the contract
d. On February 10, 2017
37. On September 1, 2017, A entered into a contract with B whereby A sells to B 5,000 sacks of sugar to be
delivered on the 15th and to be paid in full on the 30th. There was no agreement for rescission based on
non-payment. A did not deliver on the 15th but on the 30th he was willing and offering to deliver but B
did not make payment on the said date and so A did not like it and refused to make delivery. Decide.
a. A cannot rescind the contract for non-payment of the price.
b. A cannot refuse to deliver the goods
c. B is not entitled to recover damages
d. A can rescind the contract for non-payment of the price.
38. 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.
a. The promise is unenforceable because it is not in writing.
b. The Statute of Frauds is applied because A has not rendered services already.
c. The Statute of Frauds is inapplicable here because the promise to give the land is not a sale of real
property.
d. The Statute of Frauds can apply to partially executed contracts.
39. A has a daughter, B; X has a son, Y. A, B, X and Y agree together that Y will marry B. The agreement is
oral. If B later on refuse to marry Y who has spent for the necessary wedding preparations, X and Y
decided to bring an action against A and B, will the actions prosper? Decide.
a. Between Y and B, the action will not prosper because the agreement is made orally.
b. In case of A and X, the action will prosper because the agreement which was made orally is
enforceable as it is based on the consideration of marriage.
c. As to A and X, the action will notnprosper because the agreement is not enforceable as it was not
they who mutually promised to marry each other.
d. The action of X and Y against A and B will prosper because the agreement is based on the
consideration of marriage other than a mutual promise to marry.
40. A limited partnership named “A, B and C Co. Ltd.” Was formed on October 25, 2016 by A as general
partner and B and C as limited partners. In 2017, A and B got married. Did the marriage dissolve or put
an end to the partnership?
a. Yes, the partnership is dissolved by the marriage because there is a change in equity among the
partners.
b. No, the marriage did not dissolve the partnership.
c. No, because spouses can enter into a universal partnership
d. Yes, because spouses cannot enter into a particular partnership or be thereof.
41. X, Y, and Z were partners. X is an industrial partner. During the first year of operation, the firm realized
a profit of P60,000. During the second year, the firm sustained a loss of P30,000. So the net profit for
the two years of operation was only P30,000. In the articles of partnership, it was agreed that X, the

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 industrial partner would get 1/3 of the profit but would not share in the losses. How much will X, the
industrial partner, get
a. X will get only P20,000 which is 1/3 of the profit of the 1st year of operation.
b. X will get only P10,000 which is 1/3 of the net profit.
c. X will get only P20,000 in the first year and none in the second year.
d. X will share in the loss in the second year.
42. A, B and C, capitalist partners, each contributed P30,000, P20,000 and P10,000, respectively and D, the
industrial partner, contributed his services. Suppose X, a customer, is the creditor of the firm to the
amount of P180,000. How can X recover the P180,000?
a. X must sue the firm and get P60,000 from all the partners including D, the industrial partner. X can
still recover the balance of P120,000 from the four partners jointly.
b. X can recover from the firm P60,000. X can still recover the balance of P120,000 from the capitalist
partners only.
c. X can recover from the firm P60,000. X can recover the balance of P120,000 from any of the
partners solidarily.
d. X can recover from the firm P60,000 and consider the balance of P120,000 as loss.
43. The authorized capital stock of a corporation is P500,000 divided into share with a par value of P100
each. At least P25,000 or 250 shares of the authorized capital stock must be subscribed. The 250
shares were subscribed by 25 subscribers. To meet the minimum amount of subscription that must be
paid:
a. It is enough that 25% of the total subscription is paid, regardless of the amount paid by each
individual.
b. Each and every subscriber must always pay P250 which is 25% of their individual subscription.
c. Seven of the subscribers paid P6,250 and the rest of the subscribers did not make any payment.
d. None of these.
44. Which of the following is not a requisite for the existence of a de facto corporation?
a. The existence of a valid statute under which a corporation, with some of the purposes in question,
can be formed.
b. An attempt in good faith to form a corporation according to the requirements of law.
c. As user of corporate powers, there must be a transaction of business in some ways as if it were a
corporation.
d. The organization is not registered with the Securities and Exchange Commission.
45. For qualifying A to be one of the directors of X, Inc., one share of stock is issued to him. The agreement
is that he will retransfer the stock ceasing to be a director. A assigned to be B the certificate of stock as
a security of a promissory note in another transaction. B is not aware of the secret agreement of A to
retransfer the stock on ceasing to be a director. Decide.
a. B has a better right to the share than X, Inc. because the certificate of stock is considered quasi-
negotiable.
b. X, Inc. has a better right to the share because no matter how innocent B is, defect of title of prior
parties will not acquire ownership.

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 c. Having clothed, A apparently acquire title over the stock. X, Inc. is estopped from asserting its title
over it; hence B has a better right to the share than X, Inc.
d. B acquired no better right than that of the transferor of the share in spite of innocence of the
infirmity of the certificate.
46. Stock corporations are prohibited from retaining surplus profits in excess of 100% of their paid-in
capital stock. Three of the following enumerations are exceptions. Which does not belong to the
exceptions?
a. When justified by definite corporate expansion projects or programs approved by the board of
directors.
b. When there is pension plan as agreed in Collective Bargaining Agreement
c. When the corporation is prohibited under loan agreement with any financial institution or creditor
whether local or foreign, from declaring dividends without its consent.
d. When it can be clearly shown that such retention is necessary under special circumstances
obtaining in the corporation, such as providing for probable contingencies.
47. X and Y are solidary debtors of A, B, C and D, joint creditors, to the amount of P8,000. How much can A
collect from X?
a. A could recover P4,000 from X. A, in turn, has to give to B, C, and D P1,000 each
b. A could recover P2,000 only from X
c. A could recover P1,000 only from X
d. A could recover P8,000 from X. A in turn, has to give to B, C and D
48. Y sold his horse to Z for P50,000. No payment has yet been made and the sales document does not
provide the date of delivery. Before delivery and payment, the horse gave birth to a baby horse.
a. Z is entitled to the baby horse which was born after the perfection of the contract
b. Y is entitled to the fruit ( baby horse) as Z has not paid the price yet
c. Y is entitled to the fruit ( baby horse) as Z has not paid the price yet
d. Z should pay additional amount for the baby horse to be entitled to it.
49. A wrote a letter to B wherein A offered to sell a piece of land to B for P200,000. B signified his desire to
buy the land. In A’s letter, B was given a period of two months within which to produce the P200,000.
After 45 days, A told B that the price of the land is now P250,000. Can B compel A to accept the
P200,000 first offered by A and execute the Deed of Sale?
a. Yes, because there was actual meeting of the minds of the parties.
b. No, for B did not signify his acceptance of A’s offer.
c. Yes, because A is already estopped by his signed letter.
d. Yes, because the period of two month has not expired.
50. Mr. Santos sold his car to Mr. Garcia for P150,000. No date is fixed by the parties for the performance
of their respective obligations. The obligation of Mr. Santos is:
a. To deliver the car immediately as there is a perfected contract.
b. To deliver the car upon payment of Mr. Garcia of P150,000
c. To rescind the contract since there is no time fixed for the delivery and payment of the car.
d. To deliver the car within a reasonable time after the demand of Mr. Garcia to deliver.

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 51. Mr. AB owes Mr CD P150,000 due on August 31, 2017. Mr AB executed a mortgage in favor of Mr CD
on Mr AB’s building to guaranty the obligation. On August 10, 2017, the mortgaged building was totally
lost due to a strong typhoon. On August 12, 2017, Mr CD demanded payment from Mr. AB. Is Mr. CD’s
demand valid?
a. No. The obligation is with a definite period, thus the creditor cannot demand fulfillment of the
obligation as such would be prejudicial to the rights of the debtor.
b. No. The obligation is extinguished because the obligation is lost due to a fortuitous event.
c. Yes. The debt becomes due at once because the guaranty was lost even through a fortuitous even
unless the debtor can mortgage another property that is equally satisfactory.
d. Yes. The debt becomes due at once because the tenor benefit is given solely to the creditor
thereby giving the creditor the right to demand performance even before the due date.
52. Mr. ABC is obliged to give Mr. XYZ his only car on July 15, 2017. Mr. ABC did not deliver on July 15,
2017. On July 20 2017, an earthquake destroyed the building where the car was garaged and the car
was destroyed. Is Mr. ABC still liable?
a. No. Considering that no demand to deliver was made by Mr. XYZ and the specific thing was lost
due to fortuitous event, the obligation is extinguished.
b. No. The obligation is extinguished even if the debtor is already in default because the debtor can
plead impossibility of performance.
c. Yes. Mr. ABC is already in legal delay, thus the obligation to deliver the lost specific thing is
converted into monetary claim for damages.
d. Yes. The creditor can instead demand for a substitute equivalent in value from the debtor.
53. If a partner in a partnership is insolvent, the first order of preference in the distribution of his assets
are:
a. Partnership creditors
b. Partners contribution to the partnership
c. Separate creditors or the debtors
d. Pro-rata between the separate creditors of the debtor and the partnership creditors.
54. X, Y and Z are equal partner to XYZ Partnership. A owes the XYZ Partnership for P9,000. Z, a partner,
collected from A P3,000 before X and Y received anything. Z issued a receipt on the P3,000 as his share
of what A owes. When X and Y collected from A, A was insolvent.
a. Partner Z shall share partners X and Y with the P3,000.
b. Z cannot be required to share X and Y with the P3,000.
c. X and Y should first exhaust all remedies to collect from A.
d. X and Y can automatically deduct from the capital contribution of Z in the partnership their
respective share in the P3,000.
55. Aguas and Bautista are partners in a real estate partnership. The partnership owns a piece of land
which Castro desired to buy. Castro contacted Aguas and informed him of his desire to buy the land
and Aguas did not tell Bautista about it. Aguas bought Bautista out of the partnership and afterwards
sold the land to Castro with a big profit.
a. The partnership is dissolved when Aguas became the sole owner.

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 b. The sale of the land to Castro is void because it was without the knowledge of Baustista.
c. Aguas is not liable to Baustista for the latter’s share in the profits.
d. Aguas is liable to Bautista for the latter’s share in the profits.
56. A, B and C are partners in ABC Company. D represented himself as a partner in ABC Company to E,
who, on the belief of such representation, extended a P150,000 credit to ABC Company. Assuming only
B and C consented to such representation, who will be held liable to E?
a. E extended the credit to ABC Company so a partnership liability exists. Thus, all the partners A, B,C
and D are liable.
b. B, C, and D are partners by estoppel and , thus, are liable pro-rata to E.
c. Partners A, B, and C who benefited from the credit extended by E are liable.
d. D who make the representation is liable to E.
57. In the matter of management of the business affairs of the corporation, this is supreme:
a. Majority of the stockholders
b. 2/3 of the stockholders
c. Board of Directors
d. President of the Corporation
58. This is the equitable right of stockholders to subscribe to newly issued shares of the corporation in
proportion to their present shares in order to maintain their equity in the corporation.
a. Right of redemption
b. Concept of corporate entity
c. Right to sue and be sued
d. Pre-emptive right
59. This is a written acknowledgment of an interest of a stockholder in the corporation.
a. Proxy
b. Share of stock
c. Certificate of stock
d. Capital stock
60. These are the persons who sign the Articles of Incorporation who may or may not be subscribers of
shares.
a. Incorporators
b. Trustees
c. Directors
d. Promoters
61. Choose the minimum requirement of the Corporation Law to corporate formation.
Authorized Capital Subscribed Capital Paid-in Capital
a. P50,000 P20,000 P5,000
b. P50,000 P20,000 P4,000
c. P50,000 P25,000 P5,000
d. P50,000 P25,000 P6,250

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 62. They provide and regulate the internal matters of the corporation, such as calling the Board of
Directors’ and Stockholders’ meetings.
a. Board of Directors
b. Majority of stockholders
c. By-laws
d. Articles of Incorporation
63. This is an authority to vote in a corporations’ stockholders’ meeting.
a. Proxy
b. By-laws
c. Certificate of stock
d. Share of stock
64. A gratuitous issue of Treasury shares will result in:
a. Capital Surplus
b. Watered stock
c. Additional profit
d. Stock dividend
65. A and B are solidary debtors of X, Y and Z, joint creditors to the amount of P15,000. How much can Z
collect from B?
a. Z could recover P7,500 from B
b. Z could recover P5,000 from B
c. Z could recover P15,000 from B. Z, in turn, has to give X and Y P5,000 each.
d. Z could recover P15,000 from B. B, in turn, can collect from A the amount of P7,500.
66. Mr. Santos executed a first mortgage of his house in favor of Mr. Dizon on May 15, 2016 to guaranty a
mortgage loan of P200,000 due for payment on May 15, 2017. On September 16, 2016, the house was
completely destroyed by a typhoon. On September 18, 2016, Mr. Dizon demanded payment of the
loan from Mr. Santos. Is Mr. Dizon’s demand for payment valid?
a. No. The obligation is one with a definite period, so the creditor cannot demand payment until the
definite due date arrives.
b. No. The obligation is extinguished because the object of the obligation is lost due to a fortuitous
event.
c. Yes. The obligation becomes due at once because the tenor benefit is given solely to the creditor
thereby giving the creditor the right to demand performance even before the due date stipulated.
d. Yes. The obligation becomes due at once because the guaranty was lost even through a fortuitous
even unless the debtor can mortgage another property that is equally satisfactory.
67. These persons are bound by contracts.
a. Contracting parties
b. Heirs
c. Assigns or assign
d. Vagabond

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 68. Mr. Santos offered to sell his alnd to Mr. Calma for P500,000. Mr. CAlma accepted the offer and paid
Mr. Santos P500,000 and Mr. Santos delivered the owner’s duplicate of the Transfer Certificate of Title
of the land. Mr. Calma wishes to register the land in his name but the Register of Deeds asked Mr.
Calma for the Deed of Sale. What can Mr. Calma do?
a. Mr. Calma cannot compel Mr. Santos to return the payment because the contract is not
enforceable.
b. Mr. Calma may sue Mr. Santos to return the price under the legal maxim “ no one may enrich
himself at the expense of another”.
c. Mr. Calma may compel Mr. Santos to execute a Deed of Sale because the contract is valid.
d. Mr. Calma may occupy and use the land as a buyer in good faith.
69. Mrs. Gomez sold and delivered her diamond ring to Mrs. Pangan. It was agreed upon that after ten
days, Mrs. Pangan will name and fix the price. On the tenth day, Mrs. Pangan called up by telephone
Mrs. Gomez and stated the price of P10,000. Mrs. Gomez accepted. Is the sale perfected?
a. Yes. The price is stated and named by one of the contracting parties and was accepted by the
other.
b. No. At the time of sale, the price was not fixed.
c. No. The price was left to the discretion of one of the parties.
d. No. At the time of sale, the price is not known.
70. A and B are partners in a real estate business. A and B were approached by X who offered to buy a
parcel of land owned by the partnership. Thereafter, B sold to A B’s share in the partnership. Then, A
sold the land to X at a big profit.
a. A is liable to B for B’s share in the profits.
b. The partnership is dissolved when A became the sole owner.
c. A is not liable to B for the latter’s share in the profits
d. The sale of the land to X is valid
71. One of the following incidents may be a cause for involuntary dissolution of a partnership. Which is it?
a. Termination of the partnership
b. Insolvency of any partner
c. Express will of any partner
d. Expulsion of any partner
72. A and B are equal partners in AB and Company. Y represented himself as a partner in AB and Company
to Z, who relying on such representation extended a P50,000 credit to AB and Company. Of the two
partners, only B knew and consented to the representation of Y, who should be held liable to Z?
a. Only Y, who presented himself as partner, is liable.
b. Since the credit was extended to AB and Company, a partnership liability was created so the two
partners and Y are liable.
c. Partners A and B who benefited from the credit extended to the partnership AB and Company shall
be liable to Z.
d. B and Y are partners by estoppel and, thus, are liable to Z.
73. The following persons are disqualified to form a universal partnership. Who are the exceptions?

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 a. Brother and sister
b. Husband and wife
c. Those guilty of adultery and concubinage
d. Those guilty of the same criminal offense, if the partnership is entered into the consideration of
the same.
74. A is the capitalist partner and B is the industrial partner. A engaged personally in the same kind of
business the partnership is engaged in.
a. If there are losses, the partnership will bear the losses.
b. If there are profits, the profits will be shared by A and the partnership.
c. If there are profits, A will give the profits to the partnership.
d. A will be excluded from the partnership and pay damages.
75. A is the managing partner of ABC and Company. X owes A personally and ABC and Company P20,000
each. A collected and received from X P10,000 and he issued a receipt wherein it is stated that the
amount is applied against his personal credit.
a. The amount received will be applied in favor of the partnership credit.
b. The amount received will be applied in proportion to both credits.
c. The amount received will be applied in the credit of A.
d. All the partners will decide as to whose favor it will apply.
76. Three of the following are similarities between a partnership and a corporation. Which is not?
a. The individual composing both have little voice in the conduct of the business.
b. Both have juridical personality separate and distinct from that of the individuals composing them.
c. Like a partnership, a corporation can act only through agents.
d. Both are organizations composed of an aggregate of individuals.
77. One of the following is a limitation on proxies. Which is it?
a. Proxy acquires legal title to the shares of the stockholder
b. A proxy vote even in the presence of the stockholder
c. The proxy is voted only for the meeting for which it was intended
d. A proxy is irrevocable at any time
78. The number of Board of Trustees in a non-stock corporation:
a. Shall not be less than five but not more than eleven
b. May be more than fifteen upon its organization
c. May be less than five upon its organization
d. Shall not be less than five but not more than fifteen
79. One of the following is a ground for the suspension or revocation of the certificate of Incorporation by
the Securities and Exchange Commission.
a. If the corporation has commenced its business transactions and afterwards ceased operation
continuously for a period of at least five years.
b. If the corporation fails to commence and start to operate and the failure is due to a cause beyond
the control of the corporation.

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 c. If the corporation does not formally commence its business transaction and subsequently become
continuously inoperative for period of two years.
d. If the corporation has commenced its business transactions and afterwards ceased operation
continuously for a period of at least two years.
80. Right of the corporation to continue as a juridical entity for the term stated in the Articles of
Incorporation despite the death of any stockholder.
a. Juridical personality
b. Pre-emptive right
c. Right of succession
d. Right of existence
81. Mr. Santos secured and Mr. Dizon granted a loan of P100,000 due for payment on December 31, 2018.
Mr. Santos excuted a first mortgage of his residential house in favor of Mr. Dizon to guaranty the
P100,000 loan. On October 19, 2018, the residential house was totally destroyed by Typhoon Unsang.
On October 31, 2018, Mr. Dizon demanded payment of the loan from Mr. Santos. Is Mr. Dizon’s
demand for payment valid?
a. No. The obligation is one with a definite date for payment on December 31, 2018 and until that
date arrives, Mr. Santos is not liable to pay.
b. No. The object of the obligation was lost through a fortuitous event and the obligation was
extinguished.
c. Yes. The obligation became due at once because the guaranty was lost through a fortuitous event.
d. Yes. The obligation became due at once because from the tenor benefit, the creditor is given the
right to demand performance even before the due date stipulated.
82. A, B, and C borrowed P36,000 from X and Y. The three debtors signed a promissory note dated January
10, 2018 promising to pay the creditors on or before July 10, 2018. How much can X collect from C?
a. P18,000
b. P6,000
c. P12,000
d. P36,000
83. When the subject matter of the contract is lost through a fortuitous event, who is liable?
a. The debtor
b. The creditor
c. None of them
d. Both the creditor and the debtor
84. Mr. Reyes and Mr. Vitug are good friends. Mr. Reyes sold and delivered his car to Mr. Vitug. It was
agreed and understood that on Sunday, Mr. Reyes will name and fix the price of the car. Sunday came.
Mr. Reyes called Mr. Vitug by telephone and stated and fixed the price at P150,000. Is the sale
perfected?
a. Yes. The price was stated and fixed on the date agreed upon .
b. No. The price was left to the discretion of the seller.
c. No. At the time of the sale, the price is not fixed.

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 d. No. The price fixed by the seller was not accepted by the buyer.
85. Mr. Burgos sold a parcel of land to Mr. Javier for P200,000. Mr. Burgos delivered the Transfer
Certificate of Title of the land to Mr. Javier. Later, Mr. Javier wanted to register the land in his name
and he needed a Deed of Sale. What can Mr. Javier do?
a. Mr. Javier may compel Mr. Burgos to execute a Deed of Sale.
b. Mr. Javier cannot compel Mr. Burgos to refund the P200,000 because the contract is not
enforceable.
c. Mr. Javier can sue Mr. Burgos for enriching himself at the expense of another.
d. Mr. Javier can possess and utilize the land as a buyer in good faith.
86. When two persons are reciprocally debtors and creditors, there is:
a. Consignation
b. Merger
c. Compensation
d. Confusion
87. A, B, and C are general partners in ABC Partnership. A, the managing partner engaged personally in a
business that is the same as the business of the partnership without the consent of B and C.
a. If there are profits, A will give the profits to the partnership.
b. If there are losses, the partnership will bear the losses.
c. If there are profits, they will be shared by partner A and ABC partnership.
d. The profits or losses will be shared equally by A and the Partnership.
88. Three of the following are rights of a general partner and also of a limited partner in a limited
partnership. Which is not?
a. To inspect and copy at a reasonable hours the books of the partnership and have them kept at the
principal place of business.
b. To demand true and full information of all matters affecting the partnership and a formal account of
the partnership affairs.
c. To have dissolution and winding up by decree of court.
d. None of the above.
89. The partnership is insolvent. Who are preferred as regards to the partnership property?
a. Partnership creditors
b. Partners’ separate creditors
c. Partners with respect to their capital
d. Partners with respect to their profits
90. A, B, and C are partners in ABC Company. D introduced himself as a partner in ABC Company to X, who,
on the belief of such introduction, extended a P40,000 credit to ABC Company. These facts are known
to A who did not oppose. Who shall be held liable to X?
a. Since X extended the credit to ABC Company so a partnership liability exists. Thus, all the partners A,
B, C, and D are liable.
b. Only A who knows the transaction and D are partners by estoppel and thus, are liable prorate with E.
c. D, who represented himself as partner in ABC Company is liable.

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 d. A, B, and C who benefited in the P40,000 credit shall be liable to X.
91. Bears the loss of property contributed to the partnership
a. Capitalist partner
b. Limited partner
c. Partners contributing usufructuary rights
d. None of the above
92. Three of the following are attributes of a corporation. Which is the exception?
a. An artificial being
b. Has the right of succession
c. Has powers, attributes, and properties expressly authorized by law or incident to its existence.
d. Created by agreement of the incorporators
93. Three of the following are qualifications of the Board of Directors. Which is the exception?
a. He must own at least one share of the capital stock.
b. At least majority of them are citizens of the Philippines.
c. The shares owned must be recorded in the books of the corporation.
d. He must continuously own at least one share of the stock of the corporation.
94. The voting requirement to increase or decrease capital stock.
a. Majority vote of the board of directors and consented to by the stockholders representing 2/3 of the
outstanding capital stock
b. 2/3 of the board of directors with the consent of majority of the outstanding capital stock.
c. Majority vote of the board of directors with the consent of the majority of the outstanding capital
stock.
d. Majority vote of the board of directors and ¾ vote of the outstanding capital stock.
95. A dividend payable partly in cash and partly in stocks, as to class of dividend is a:
a. Optional dividend
b. Property dividend
c. Liquidation dividend
d. Composite dividend
96. Bonds which are not secured by any specific mortgage, lien or pledge or corporate property but the
general credit of the corporation are:
a. Guaranteed bonds
b. Debenture bonds
c. Income bonds
d. Redeemable bonds
97. A distribution by a corporation of shares held by it in another corporation is:
a. Stock dividend
b. Sales of capital assets
c. Property dividend on actual contribution of corporate assets
d. Sale of treasury stock

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 98. OE is obliged to give OR a 2017 Mitsubishi 4-door sedan Mirage with plate number ABC 123 on
September 30, 2019. On October 10, 2019, OE did not yet deliver the car which was totally destroyed
by an earthquake on such date. Is OE still liable?
a. No. The obligation is extinguished. The specific thing was lost due to a fortuitous event and demand
to deliver was made by OR.
b. Yes. OE is in legal delay. OR can claim damages.
c. No. Even if OE is already in default, he can plead impossibility of performance.
d. Yes. OR can instead demand for another car of equivalent value from OE.
99. The buyer of a thing has the right to the fruits of the thing:
a. From the time the thing bought is delivered.
b. From the time the sale is perfected.
c. From the time the obligation to deliver the thing bought arises.
d. From the time the fruits are delivered.

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