TEST BANK BUSINESS LAW BY SORIANO

TEST 1 – MULTIPLE CHOICE. Select the best answer by writing the letter of your choice.
1. The following are the requisite of an obligation, except:
a. Passive subject, debtor or obligor
b. Active subject, creditor or oblige
c. Efficient cause
d. Demand
2. Obligations may arise from any of the following, except:
a. Contracts
b. Quasi-contracts
c. Law
d. Prestation
3. It is the voluntary administration of the property of another without his consent.
a. Negotiorum gestio
b. Solution indebiti
c. Quasi-delict
d. Contracts
4. It is a wrong committed without any pre-existing relations between the parties.
a. Natural obligation
b. Quasi-delict
c. Quasi-contract
d. Crime
5. Unless the law or the stipulations of the parties require another standard of care, every person obliged to give something is also obliged to take care of it with:
a. Extra-ordinary diligence
b. Diligence of a father of a good family
c. Diligence of a good father of a family
d. Good diligence of a father of a family
6. The creditor has a right that is enforceable against a definite passive subject. The right is known as:
a. Personal right
b. Real right
c. Natural right
d. Civil right
7. It is a thing that is particularly designated or physically segregated from all others of the same class.
a. Generic thing
b. Indeterminate thing
c. Determinate thing
d. Real thing
8. One of the following is determinate thing. Which is it?
a. A cow
b. A horse
c. A Toyota car with engine no. 12345, body no. 35787 and plate no. ABC 123.
d. A ring with diamond embellishment
9. Demand must be made on the due date of the obligation in order for delay to exist in one of the following cases. Which is it?
a. When it was stipulated by the parties that demand need not be made.
b. When the law provides that demand need not be made.
c. When the obligation does not indicate whether demand must be made or not on due date.
d. When time is of the essence of the contract.
10. This refers on the delay on the part of the creditor.
a. Mora solvendi ex re
b. Compensation morae
c. Mora solvendi ex personae
d. Mora accipiendi
11. There shall be no liability for loss due to fortuitous events in one of the following cases. Which is it?
a. When the debtor delays.
b. When the parties so stipulated that there shall be liability even in case of loss due to fortuitous events.
c. When the nature of the obligation requires the assumption of risks.
d. When the obligation is to deliver a determinate thing and there was no stipulation as to the liability of the debtor in case of loss due to fortuitous events.
12. The following are the remedies of the creditor to pursue his claims against the debtor, except to:
a. Pursue the property owned and in possession of the debtor.
b. Exercise all the rights and bring all the actions of the debtor (accion subrogatoria)
c. Impugn the acts which the debtor may have done to defraud his creditors (accion pauliana)
d. Compel the debtor to perform the service in obligations to do.
13. D borrowed P50, 000 from C. C dies before he has collected the debt leaving S, his son, as heir. Which of the following statements is correct?
a. S can collect from D although D and C did not agree that the credit right will pass on to the heirs of C.
b. S cannot collect because the credit right is personal to C.
c. S can collect only f D and C agreed that the credit right will pass on the heirs of C.
d. S cannot collect because the law prohibits the transmission of the credit right.
14. D is obliged to give C a specific car if C passes the CPA Licensure Examination. D’s obligation is an example of:
a. A pure obligation
b. An obligation with a suspensive condition
c. An obligation with a resolutory condition
d. An obligation with a period
15. One of the following obligations is not immediately demandable.
a. Pure obligation
b. Obligation with a resolutory condition
c. Obligation with an in diem period
d. Obligation with ex die period
16. One of the following is a void obligation:
a. D is obliged to give C P5,000.00 if C does not go to the moon.
b. D is obliged to give C P5,000.00 if D does not go to Baguio.
c. D is obliged to give C P5,000.00 if C does not go to Baguio.
d. D is obliged to give C P5,000.00 if D wins first prize in the sweepstakes on a ticket that he had already purchased.
17. D is obliged to give C P10,000.00 if X dies. This is an example of:
a. An obligation with a suspensive condition
b. An obligation with a resolutory condition
c. An obligation with a period
d. A pure obligation
18. When the debtor binds himself to pay when his means permit him to do so, the obligation is:
a. An obligation with a resolutory condition
b. A pure obligation
c. An obligation with a suspensive condition
d. An obligation with a suspensive period
19. Whenever a period is designated in an obligation, the said period shall be presumed to have been established for the benefit of:
a. The debtor
b. The creditor
c. Both the debtor and the creditor
d. Neither of the parties
20. The debtor shall lose the right to make use of the period in the following cases, except when he:
a. Becomes insolvent.
b. Violates any undertaking in consideration of which the creditor agreed to the period.
c. Attempts to abscond.
d. Does not furnish any guaranty or security to the creditor.
21. An obligation ceases to be alternative and becomes a simple obligation in the following cases, except when:
a. The debtor has communicated his choice to the creditor.
b. The right of choice has been expressly granted to the creditor and his choice has been communicated to the debtor.
c. Among the several prestations that are due only one is practicable.
d. Three prestations are due but one of them is unlawful or impossible.
22. D s obliged to give C a specific watch, a specific ring, or a specific bracelet. The parties agreed that C will have the right to choose the thing which will be given to him. Before C could make his choice, the watch and the ring are lost through D’s fault, successively. What is the right of C?
a. C may choose the delivery to him of the bracelet, or the price of watch or the price of the ring plus damages.
b. C cannot choose the price of the watch or the price of the ring because the said objects have already been lost.
c. C can only choose to have the bracelet because anyway, D can still perform his obligation.
d. C can only choose to have delivery of the bracelet or the price of the ring which was the last item that was lost plus damages.
23. D is obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as substitute. Which of the following statements is true?
a. If the ring is lost through a fortuitous event before substitution, the obligation is extinguished.
b. If the bracelet is lost through a fortuitous event before the substitution, the obligation is extinguished.
c. If the ring is lost through a fortuitous event after substitution, the obligation is extinguished.
d. If the ring is lost through the debtor’s fault after substitution, the debtor shall pay damages.
24. A, B, C and D are obliged to give V, W, X, Y and Z P20,000.00.
a. V may collect from A P20,000.00
b. V may collect from A P5,000.00
c. V may collect from A P1,000.00
d. V may collect from A P4,000.00
25. A, B, C and D joint debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P20,000.00.
a. V may collect from B P20,000.00
b. V may collect from B P4,000.00
c. V may collect from B P5,000.00
d. V may collect from B P1,000.00
26. A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z, joint creditors, P20,000.00.
a. V may collect from B P20,000.00
b. V may collect from B P4,000.00
c. V may collect from B P5,000.00
d. V may collect from B P1,000.00
27. A, B, C and D, solidary debtors, are obliged to give V, W, X, Y and Z, solidary creditors, P20,000.00.
a. V may collect from B P20,000.00
b. V may collect from B P4,000.00
c. V may collect from B P5,000.00
d. V may collect from B P1,000.00
28. A, 25, B, 35, and C, 17, are solidary debtors of X in the amount of P9,000.00.
a. X may collect from A P9,000.00
b. X may collect from A P6,000.00
c. X may collect from A P1,000.00
d. X may collect nothing because the obligation is voidable, C being a minor.
29. The following obligations are divisible, except an obligation:
a. To give definite things.
b. Which has for its object the execution of a certain number of days of work.
c. Which has for its object the accomplishment of work by metrical units.
d. Which by its nature is susceptible of partial performance.
30. In obligations with a penal clause, the creditor as a rule may recover from the debtor in case of breach the following:
a. The penalty as agreed upon, plus damages and interest.
b. The penalty and damages.
c. The penalty and interest.
d. Only the penalty
31. Consider the following statements:
I. The nullity of the principal obligation carries with it the nullity of the penal clause.
II. The nullity of the principal obligation does not carry with it the nullity of the penal clause.
III. The nullity of the penal clause carries with it the nullity of the principal obligation.
IV. The nullity of the penal clause does not carry with it the nullity of the principal obligation.
a. Statements I and III are true.
b. Statements I and IV are true.
c. Statements II and III are true.
d. Statements II and IV are true.