Business Law Questionnaire

BUSINESS LAW 1. A natural obligation under the New Civil Code of the Philippines is one which a. The obligor has a moral obligation to do, otherwise entitling the obligee to damages b. Refers to an obligation in writing to do or no tto do c. The oblige may enforce the court if violated by the obligor d. Cannot be judicially enforced but authorizes the obligee to retain the obligor’s payment or performance. 2. Knowing that teh car had a hidden crack in the engine, X sold it ot Y without informing the latter about it. In any event, the dded of sale expressly stipukated that X was not liable for hidden defects. Does Y have the right to demand from X a reimbursement of what he spent to repair the engine plus damages a. Yes, X is liable wheteher or not he was aware of the hidden defects b. Yes, since teh defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y c. No, because Y is in estoppel, having changed engine without prior demand d. No, because Y waived teh warranty against hidden defects 3. In an obligation to give a determinate thing, what rights are available to the creditor? First Answer: To compel specific performance Second Answer: To recover damages in case of breach of the pbligation Third Answer: to ask that the obligation be complied with at the expense of the debtor a. All answers are correct b. Only the first and second answers are corerct c. Only the first answer is correct d. All answers are wrong 4. J agreed to pay his debt and in case of non-payment, to render free service as a servant. Is the obligation valid? a. No, the obligation to pay and to render service as a servant is contrary to law and morals b. Yes, if the services will be rendered in satisfaction of the debt and in case of non-performance, the proper remedy is specific performance c. No, the nullity of the condition carries with it the nullity of the principal obligation d. Yes, in so far as the obligation to pay but not as regards the undertaking to render domestic services for free 5. A owes B P10,000 with 12% interest. B owes C P1,200. It was agreed between A and B that A would give the interest of P1,200 to C and C communicated his acceptance of the stipulation between A and B. There is

a. Stipulation pour atrui b. Pactum commissorium c. Compensation d. Assignment 6. This obligation is demandable at once. a. With a suspensive condition b. With a period in diem c. When my means permit me to do so d. When it depends on the happening of a specified event 7. Which of the following is wrong in alternative obligation? a. The obligor shall completely perform one of them b. The obligee cannot be compelled to receive part of one and part of the other undertaking c. The right of choice belongs to the creditor, unless it has been expressly granted to the debtor d. The debtor shall have no right to choose those prestations which are impossible 8. I. The loss or deterioration of the thing intended as a substitute through the negligence of the obligor, does not render him liable. II. a person alternatively bound by different prestations shall completely perform one of them a. True, true b. True, False c. False, true d. False, false 9. In which of the following obligations is specific performance not available? a. Obligation to repair roof of the house of a client who effected a downpayment b. Obligation to give gratuitous support c. Obligation to give a specific thing d. Obligation to give generic thing 10. A was obliged to pay B P1M on december 31, 2015. A paid B on December 31, 2014 believing that the obligation was already due and demandable, How many may A recover from B on March 31, 2016? a. Nothing b. Legal interest for one year and three months c. P1M plus legal interest for one year d. Legal Interest for 1 year 11. A, in his will, gave some property to B, provided that C would die in 5 years. This is a (an) a. Pure obligation b. Obligation with a resolutory condition c. Obligation with a suspensive condition d. Obligation with a period

12. Pending the fulfillment of the suspensive condition, teh determinate object of the obligation deteriorated through the fault of the debtor. As a result a. Obligation is extinguished b. Debtor is obliged to pay damages c. Creditor shall bear the impairment d. Creditor may rescind the obligation plus damages 13. In which of the following is demand necessary to make the debtor in delay in the performance of his obligation? a. When the time of the performance is of the essence b. When the time of performance has been stipulated c. When the law so provides d. When demand would be useless 14. X, Y, Z are joint creditors of A, B, C and D, joint debtors in the amount of Php 60,000. How much can X and Y collect from A, B and C? a. X and Y can collect Php 30,000 from A, B and C b. X and Y can collect Php 40,000 from A, B and C c. X and Y can collect Php 45,000 from A, B and C d. X and Y can collect Php 30,000 from anyone of A, B and C 15. The right of the creditor that is enforceable against anybody is, what kind of right? a. Personal b. Moral c. Natural d. Real 16. The following are requisites of quasi-delicts except: a. There must be an act or omission b. There must be fault or negligence c. There must be delay d. There must be damage caused 17. A promissory note bearing the words: “we promise to pay”, signed by two or more persons makes the debtors a. Civilly liable b. Not liable c. Solidarily liable d. Jointly liable 18. Payment made to a third person is valid to extinguish the obligation of the debtor to the creditor in the following cases, except: a. After payment to the creditor, the third person acquires the creditor’s right. b. When the creditor ratifies the payment to the third person.

c. When through the creditor’s conduct, the debtor was led to believe that the third person had authority to receive payment. d. When the third person is subrogated to the rights of the creditor. 19. Which characteristic of dacion en pago is similar to that of sales? a. There is pre-existing credit b. Obligations are extinguished c. There is less freedom in fixing the price d. Ownership of the object transferred to the other party 20. “I will give you my piano but I may give you PC set as a substitute.” is an example of a/an a. Obligation with a Period b. Obligation with a Penal Clause c. Facultative Obligation d. Alternative Obligation 21. A, B, C and D, joint debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P 20,000. Which is true? a. V may collect from B P 20,000. b. V may collect from B P 1,000. c. V may collect from B P 4,000. d. V may collect from B P 5,000.

22. “I will give you my car one year after your death.” The obligation is a. Valid, because the event is sure to come b. Valid, because the obligation is conditional c. Valid, but disregard the condition d. Void, because it is not legally possible 23. The debtor is liable for damages in case of delay if he is guilty of any of the following except: a. Mora b. Mistake c. Culpa d. Breach through contravention of the tenor thereof 24. A delayed accession is: a. Formation of an island b. Avulsion

c. Alluvium d. Change in the course of riverbed 25. The following produces the effect of extinguishment of an obligation except: a. Payment by a third person b. Payment through manager’s check c. Obligation becomes illegal d. The party guilty of delay cannot be determined 26. The rule that every person criminally liable for a felony is also civilly liable does not apply to: a. Contempt b. Gambling c. Violations of traffic regulations d. All of the above e. None of the above 27. L is obliged to deliver a specific cellphone to M on April 30, 2015. L did not deliver the said cellphone on due date despite the demand made by M. Which is correct? a. M may obtain another cellphone from other suppliers at L’s expense. b. M may demand payment of damages from L. c. M may compel L to deliver the specific cellphone. d. L shall be responsible for any fortuitous event until he has effected delivery to M. 28. Mike leased a condominium unit owned by Harvey for 4 years. He pays a monthly rental of 50,000. What is the prestation? a. Mike, the tenant b. The payment of the monthly rental to Harvey c. Harvey, the lessor d. The apartment owned by Harvey 29. Steve, a 30-year old man, asked Tony, a 12-year old boy, to climb a tree to get his cat with a promise to give him 300 pesos. Tony climbed the tree but on his way down, he slipped and died. Steve is obliged to pay damages to the heirs of Tony on the basis of: a. Acts and omissions punishable by law b. Quasi-delict c. Quasi-contract

d. Steve is not liable because it was not due to his negligence that Tony fell to his death. 30. a. Y b. Y c. Y d. Y

to to to to

Choose the void one. give Z 12000 if Y goes to Camiguin. give Z 400 if Z goes to Maguindanao. give Z 500 a month till Y returns from Abra. give Z 10000 if Z does not fly to Saturn.