REG2 - Final Boom Pow
D borrowed P10,000 from C whereby D delivered and pledged his specific watch to C to secure the payment of the loan. Aside from that, G guaranteed in writing the loan of D. At the maturity date of the loan, C voluntarily returned the said watch to D. Which contract is/are extinguished by the return of the watch? a. Contract of pledge only b. Contract of pledge and contract of guaranty only c. Contract of pledge and contract of loan only d. Contract of pledge, contract of guaranty and contract of loan
a. Contract of pledge only
S obliged himself to deliver a specific laptop to B while B obliged himself to deliver a specific cellphone worth P10,000 and P10,000 cash to S. What contract is entered by S and B? a. Contract of sale b. Contract for a piece of work c. Contract of barter d. Contract of lease
a. Contract of sale
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
Which of the following fees may be collected by the developer of a subdivision or condominium project from the buyer after the full payment of the lot or unit by the buyer? a. Fee for registration of the deed of sale in Registry of Deeds b. Capital gains tax c. Local transfer tax d. All of the above
a. Fee for registration of the deed of sale in Registry of Deeds
Which of the following is not considered as a casualty insurance? a. Fire Insurance b. Motor Vehicle liability insurance c. burglary and theft insurance d. Plate Glass Insurance
a. Fire Insurance
Under Philippine Lemon Law, should the returned motor vehicle by reason of noncompliance be made available for resale, it is the duty of the manufacturer, distributor, authorized dealer or retailer to make the proper disclosure in writing. The duty of the manufacturer, distributor, authorized dealer or retailer with regard to disclosure on resale shall extent to: a. First purchaser from the distributor, authorized dealer or retailer b. Second purchaser from the first purchaser c. Third purchaser from the second purchase d. All of the above
a. First purchaser from the distributor, authorized dealer or retailer
A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples. What are the rights and obligations of the buyer? a. He can accept all 6,000 apples and pay the seller at P20 per apple. b. He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples. c. He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them anyway. d. He can cancel the whole transaction since the seller violated the terms of their agreement.
a. He can accept all 6,000 apples and pay the seller at P20 per apple.
It refers to the undue accumulation by a person or combination of persons of any basic commodity beyond his or their normal inventory levels or the unreasonable limitation or refusal to dispose of, sell or distribute the stocks of any basic necessity of prime commodity to the general public or the unjustified taking out of any basic necessity or prime commodity from the channels of reproduction, trade, commerce and industry. a. Hoarding b. Profiteering c. Cartel d. Monopoly
a. Hoarding
Which of the following statements is correct? I. In contract of sales, the subject matter must be existing at the time of perfection of contract of sales for its validity. II. In contract of sales, the subject matter be owned by the vendor at the time of perfection of contract of sales for its validity. III. In contract of sales, the subject matter must be determinate at the time of perfection of contract of sales for its validity. a. III only b. I and III only c. II and III only d. I, II and III
a. III only
B borrowed P500,000 from L. In order to secure the said obligation, T mortgaged his land. The contract of real estate mortgage provides that T is absolutely prohibited from selling the mortgaged land to third person. L registered the deed of real estate mortgage in the Registry of Deeds. Afterwards, T sold said mortgaged land to A. Which of the following statements is correct? a. L may foreclose the land already owned by A in case of default by B in the principal obligation. b. The contract of sale of land from T to A is void because it is prohibited by the terms of real estate mortgage. c. The contract of real estate mortgage will not bind and affect A because of the concept of relativity of contract. d. The contract of real estate mortgage is void because B is not the owner of the mortgaged land.
a. L may foreclose the land already owned by A in case of default by B in the principal obligation.
This act is committed by a producer producer, manufacturer, supplier or seller, who through concealment, false representation of fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service. a. Unfair act b. Deceptive act c. Intimidation act d. Ultra vires act
a. Unfair act
In case of non-life insurance policy, how many days shall the insurance company pay the proceeds to the insured counted from the date of receipt of proof of loss assuming there is ascertainment of the loss or damage either by agreement between the insured and the insurer or by arbitration? a. Within thirty (30) days b. Within sixty (60) days c. Within ninety (90) days d. Within one-hundred twenty (120) days
a. Within thirty (30) days
X sold Y 100 sacks of rice that Y was to pick up from X's rice mill on a particular date. Y did not, however, appear on the agreed date to take delivery of the rice. After one week, X automatically rescinded the sale without notarial notice to Y. Is the rescission valid? a. Yes, automatic rescission is allowed since, having the character of movables and consumables, rice can easily deteriorate. b. No, the buyer is entitled to a customary 30-day extension of his obligation to take delivery of the goods. c. No, since there was no express agreement regarding automatic rescission. d. No, the seller should first determine that Y was not justified in failing to appear.
a. Yes, automatic rescission is allowed since, having the character of movables and consumables, rice can easily deteriorate.
What is the required vote for the approval of collection of association dues in a subdivision or condominium project? a. consent of at least majority of the lot or unit buyers actually residing in the subdivision or condominium project b. consent of at least 2/3 of the lot or unit buyers actually residing in the subdivision or condominium project c. consent of at least 3/4 of the lot or unit buyers actually residing in the subdivision or condominium project d. consent of at least 25% of the lot or unit buyers actually residing in the subdivision or condominium project
a. consent of at least majority of the lot or unit buyers actually residing in the subdivision or condominium project
What is the reasonable allowance for use under Philippine Lemon Law in case of there will be replacement of motor vehicle with nonconformity with a comparable motor vehicle? a. twenty percent (20%) per annum deduction from the purchase price, or the product of the distance traveled in kilometers and the purchase price divided by one hundred thousand (100,000) kilometers, whichever is lower b. twenty percent (20%) per annum deduction from the purchase price, or the product of the distance traveled in kilometers and the purchase price divided by one hundred thousand (100,000) kilometers, whichever is higher c. twenty-five percent (25%) per annum deduction from the purchase price, or the product of the distance traveled in kilometers and the purchase price divided by one hundred thousand (200,000) kilometers, whichever is lower d. twenty-five percent (25%) per annum deduction from the purchase price, or the product of the distance traveled in kilometers and the purchase price divided by one hundred thousand (200,000) kilometers, whichever is higher
a. twenty percent (20%) per annum deduction from the purchase price, or the product of the distance traveled in kilometers and the purchase price divided by one hundred thousand (100,000) kilometers, whichever is lower
What is the legal life of a patent? a. 10 years b. 20 years c. 50 years d. Indefinite
b. 20 years
M, a minor, orally sold a specific cellphone to B, an insane during the lucid interval of the latter at a price of P10,000. Arras money amounting to P500 was paid by B to M at the date of perfection of contract of sale. What is the legal remedy available to the proper party? a. Action for reformation of instrument b. Action for annulment of contract c. Action for declaration of nullity of contract d. None of the above
b. Action for annulment of contract
How many observers must be invited by the BAC in all stages of the procurement process to sit in its proceedings, in addition to the representative of the Commission on Audit, to enhance the transparency of the bidding process? a. At least one (1) observer b. At least two (2) observers c. At least three (3) observers d. At least four (4) observers
b. At least two (2) observers
In the absence of agreement between the originator and the addressee of an electronic data message or electronic document, what is the time of dispatch of an electronic data message or electronic document? a. At the time electronic data message or electronic document leaves the information system of the originator b. At the time electronic data message or electronic document enters an information system outside the control of the originator c. At the time the electronic data message or electronic document is acknowledged by the addressee d. At the time the electronic data message or electronic document is actually sent by the originator
b. At the time electronic data message or electronic document enters an information system outside the control of the originator
On January 1, 2001, S entered into a notarized contract to sell with A involving a specific laptop without payment of price. On January 2, 2001, S orally entered into a contract of sale with B involving again the same laptop. On January 3, 2001, S sold in written private instrument the same laptop to C who fully paid the price but without physical delivery. After discovery of the sale to C, B immediately obtained physical possession of the laptop from S. Who has better right over the laptop? a. A b. B c. C d. S
b. B
A borrowed P100,000 from B. In order to secure this contract of loan, A mortgaged his car to B under a contract of chattel mortgage. The borrower defaulted in the payment of the loan at the maturity date. This resulted to the extrajudicial foreclosure of the mortgaged car. Which of the following statements concerning the net proceeds is correct? a. B can never recover the deficiency from the foreclosure despite any stipulation for recovery. b. B may recover the deficiency unless there is stipulation to the contrary. c. A will never be entitled to the excess despite any stipulation to that effect. d. B is entitled to the excess unless there is stipulation to the contrary.
b. B may recover the deficiency unless there is stipulation to the contrary.
S sold a specific laptop to B on installment price of P50,000 payable in five annual installment of P10,000 starting December 31, 2023. After religiously paying two installments, B defaulted on the remaining three installments. S decided to cancel the sale. Which of the following statements is correct? a. S can still collect the balance of P30,000 from B. b. B must return the specific laptop to S. c. S can retain the installments collected despite the absence of provision for forfeiture. d. All of the above
b. B must return the specific laptop to S.
D owns a house valued at P1,000,000 which he mortgaged to C in order to secure a loan of P700,000. C took a fire insurance on the house for P800,000 with D paying the premiums thereon. The house was partially burned due to the storage of some flammable materials by D, resulting into a loss of P500,000. At the same time of the loss, D had already partially paid his debt leaving an unpaid balance of P400,000. How will the insurance proceeds, If any, be allotted to the parties? a. C is entitled to collect P40000 from the insurer and D gets nothing. The insurer shall be reimbursed by D. b. C in entitled to collect P400,000 from the insurer and D gets nothing. The insurer shall not be reimbursed by D. c. C is entitled to collect P500,000 from the insurer but he shall turn over the P100,0000 to D. The insurer shall not be reimbursed by D. d. Both C and D cannot recover any amount from the insurer.
b. C in entitled to collect P400,000 from the insurer and D gets nothing. The insurer shall not be reimbursed by D.
It refers to any freely given, specific, informed indication of will, whereby the data subject agrees to the collection and processing of personal information about and/or relating to him or her. a. Prestation b. Consent c. Cause d. Consideration
b. Consent
Which of the following is not necessary for the perfection of the contract of sale? a. Meeting of minds between the buyer and seller b. Delivery of the subject matter c. Determinate thing d. Price certain in money or its equivalent
b. Delivery of the subject matter
It refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document. a. Electronic key b. Electronic signature c. Electronic device d. Electronic evidence
b. Electronic signature
When shall written warranties or guarantees issued by a manufacturer, producer, or importer on a consumer product become operative? a. From the moment written warranties or guarantees are notarized b. From the moment of sale c. From the moment written warranties or guarantees are accepted in writing by the buyer d. From the moment the price of the consumer product is fully paid
b. From the moment of sale
Mr. A orally sold his specific land to Mr. B at a selling price of P499. The delivery and payment will be made after two months. On the agreed date of performance of contract, Mr A did not perform his obligation. What is the remedy available to Mr. B? a. File an action for specific performance b. He has no remedy. c. File an action to compel Mr. A to execute a written contract d. File an action for declaration of nullity
b. He has no remedy.
Which of the following contracts of sale is void? I. Sale of EGM's car by KRP, EGM's agent, whose authority is not reduced into writing. II. Sale of EGM's piece of land by KRP, EGM's agent, whose authority is not reduced into writing. III. Sale of EGM's car by KRP, a person stranger to EGM, without EGM's consent or authority. IV. Sale of EGM's piece of land by KRP, a person stranger to EGM, without EGM's consent or authority. a. II and IV only b. II only c. III and IV d. I and II only
b. II only
D borrowed P3,000 cash from C. In order to secure the said loan, P pledged and delivered his specific laptop to C. Afterwards, P sold the said laptop to T with the consent of C. Which of the following statements is correct? I. The contract of loan is extinguished by the sale of the laptop to T. II. The contract of pledge is extinguished by the sale of the laptop to T. III. T becomes the owner of the laptop. IV. T may demand the possession of laptop from C. a. III and IV only b. III only c. I, II and III only d. II and IV only
b. III only
It refers to any defect or condition that substantially impairs the use, value or safety of a brand new motor vehicle which prevents it from conforming to the manufacturer's or distributor's standards or specifications, which cannot be repaired. a. Hidden defect b. Nonconformity c. Encumbrance d. Redhibitory defect
b. Nonconformity
It refers to the maximum price at which any basic necessity or prime commodity may be sold to the general public. a. Price flooring b. Price ceiling c. Price median d. Price leveling
b. Price ceiling
A has an outstanding loans payable of P10,000,000 with a term of 15 years. The loan is secured by a real estate mortgage on the land of A. After 1 year, A and the bank agreed to reduce the principal amount of the loan to P5M and the term is shortened to 5 years. Which of the following statements is correct? a. No obligation remains to exist because of novation. b. The contract of real estate mortgage is extinguished. c. There is no novation because novation can never be presumed. d. The novation is void because there is no delivery of sum of money.
b. The contract of real estate mortgage is extinguished.
Under P.D. No. 1460, as amended, otherwise known as the Insurance Code, which of the following statements in relation to insurance contracts is false? a. The right of subrogation applies only to property insurance and not to the life insurance. b. The insurer does not lose his right against the wrongdoer even if latter is released from liability by the insured after receiving payment. c. The right of subrogation in insurance is not dependent upon any privity of contract and simply accrues upon payment of the insurance claim by the insurer. d. The pecuniary value of human life to the beneficiary can be accurately determined in an insurance taken by a creditor on the life of the debtor to secure a debt.
b. The insurer does not lose his right against the wrongdoer even if latter is released from liability by the insured after receiving payment.
An agent, authorized by a special power of attorney to sell a land belonging to the principal succeeded in selling the same to a buyer according to the instructions given the agent. The agent executed the deed of absolute sale on behalf of his principal two days after the principal died, an event that neither the agent nor the buyer knew at the time of the sale. What is the standing of the sale? a. Voidable. b. Valid. c. Void. d. Unenforceable.
b. Valid.
It refers to a statement or promise stated in the policy itself or incorporated therein by reference, whereby the insured expressly contracts as to the present or future existence of certain facts, circumstances, or conditions, the literal truth of which is essential to the validity of the contract of insurance. a. Concealment b. Warranty c. Representation d. Deviation
b. Warranty
Which of the following instances is not an indicator that a contract purporting to be an absolute sale or pacto de retro sale shall be presumed to be an equitable mortgage? a. When the vendor remains in possession as lessee b. When the vendee binds himself to pay the real property taxes on the thing sold c. When the period for the exercise of the right of repurchase is extended d. When the purchaser retains for himself part of the purchase price
b. When the vendee binds himself to pay the real property taxes on the thing sold
Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter about it. In any event, the deed of sale expressly stipulated 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 whether or not he was aware of the hidden defect. b. Yes, since the 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 the warranty against hidden defects.
b. Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y.
In a true pacto de retro sale, the title and ownership of the property sold are immediately vested in the vendee a retro subject only to the resolutory condition of repurchase by the vendor a retro within the stipulated period. This is known as a. right of redemption mortgage. b. conventional redemption. c. legal redemption. d. equity of redemption.
b. conventional redemption.
What is the right granted by law to the property insurance company after it paid the insured upon the happening of the peril insured against that resulted to the loss to the insured? a. legal redemption b. legal subrogation c. legal preemption d. legal novation
b. legal subrogation
Which phrase 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. b. the contract shall be without any effect. c. the seller bears the risk of loss. d. the buyer may withdraw from the contract.
b. the contract shall be without any effect.
In case the buyer in sale of personal property defaulted in at least two installments whereby a chattel mortgage is constituted on the movable sold, what is the nature of the three remedies available to the seller? a. Cumulative b. Successive c. Alternative d. All of the above
c. Alternative
How many days must lapse from the notice of cancellation or the demand for rescission of the contract by a notarial act before the seller of residential real property in installments can cancel the sale due to the failure of the buyer to pay the defaulted installment on the grace period he earned? a. At least ten (10) days b. At least twenty (20) days c. At least thirty (30) days d. At least (40) days
c. At least thirty (30) days
On January 1, 2001, S and B agreed in writing for the sale of specific TV at a price of P10,000. The terms of the contract provide the delivery of the TV shall be made on January 5, 2001 while the payment of the price is on a deferred term to be made on April 1, 2001. On January 5, 2001, S failed to deliver the TV set despite extrajudicial demand for the delivery made by B. Which of the following is correct? a. S may exercise his right of possessory lien because he has not yet received the price. b. S may exercise his right of stoppage in transitu because he is an unpaid seller. c. B may file an action for specific performance with damages against S. d. B may file an action for declaration of nullity of the contract of sale.
c. B may file an action for specific performance with damages against S.
T surreptitiously stole the brand new cellphone of O. Afterwards, T sold the said stolen cellphone to MCStore, an authorized dealer of brand new phones. B purchased the said cellphone from MCStore at a price of P50,000. Which of the following statements is correct? a. The contract of sale of cellphone from MCStore to B is void. b. O may legally recover the cellphone from B with obligation to reimburse B in the amount of P50,000. c. B obtained a good title over the cellphone. d. O may legally recover the cellphone from B without any obligation to reimburse B.
c. B obtained a good title over the cellphone.
A and B wrote a promissory note which states "We promise to pay P20,000 to C." In order to secure the loan, A pledged his specific ring while B pledged his specific watch. A and B died. D is the sole heir of A while E is the sole heir of B. C also died leaving F and G as his heirs. F obtained possession of the pledged ring while G obtained possession of the pledged watch. At the maturity date of the secured loan, D paid his predecessor's obligation of P10,000 to F. Which of the following statements is incorrect? a. D may demand from F the return of the watch. b. F may return the watch to D. c. Both a and b d. Neither a nor b
c. Both a and b
D borrowed P3,000 cash from C evidenced by a promissory note. In order to secure the said loan, D pledged and delivered his specific watch to C. At the maturity date of the loan, D defaulted in the payment of the loan. This prompted C to sell in public auction the pledged watch which resulted to net proceeds of P2,500. Which contract is extinguished? a. Contract of loan b. Contract of pledge c. Both a and b d. Neither a nor b
c. Both a and b
D borrowed P4,000 cash from C evidenced by a promissory note. In order to secure the said loan, P pledged and delivered his specific tablet to C. At the maturity of the loan, C voluntarily returned the promissory note evidencing the loan to D. Which contract is extinguished by remission? a. Contract of loan b. Contract of pledge c. Both a and b d. Neither a nor b
c. Both a and b
B purchased a residential condominium unit from S at an installment price of P6,000,000 payable in equal monthly installment of P10,000 starting on December 31, 2021. After total installment payments of P480,000, B defaulted on the next installment. What is the grace period earned by B to pay the defaulted installment without additional interest? a. Sixty (60) days b. Two (2) months c. Four (4) months d. Five (5) months
c. Four (4) months
D borrowed P10,000 cash from C. In order to secure the said loan, M mortgaged his specific land to C. Which of the following statements is correct? I. M is not allowed to sell the land to another person without the consent of C. II. In case of default in the payment of the secured loan, C will become the automatic owner of the mortgaged land. III. In case of excess resulting from the foreclosure of the mortgaged land, the excess will generally go to C unless granted to M. IV. In case of deficiency resulting from the foreclosure of the mortgaged land, the deficiency may be recovered by C from D in the absence of stipulation to the contrary. a. III and IV only b. I and III only c. IV only d. II and III only
c. IV only
When is the insured not entitled for the return of the premium of a policy? a. If no part of his interest in the thing insured be exposed to any of the perils insured against b. Where the insurance is made for a definite period of time and the insured surrenders his policy prior to expiration of such period c. If the policy is annulled, rescinded or if a claim is denied by reason of fraud d. In case of an over-insurance on a property by several insurers
c. If the policy is annulled, rescinded or if a claim is denied by reason of fraud
S sold a counterfeited G-Shock watch to B who paid a faked money. Which of the following statements is correct? a. Only S may file an action to collect a sum of money against B for the price of the G-Shock. b. Only B may file an action for exact fulfillment plus damages against S for breach of implied warranty of authenticity. c. Neither S nor B may file an action against each other. d. Both S and B may file an action against each other.
c. Neither S nor B may file an action against each other.
D borrowed P10,000 cash from C. In order to secure the said loan, P pledged and delivered his specific dog named Husky to C. During the pendency of the contracts of loan and pledge, Husky gave birth to Huskar. Who owns Huskar? a. D b. C c. P d. None of the above
c. P
Which of the following instances extinguishes the contract of pledge but not the secured contract of loan? a. Appropriation by the pledgee of the thing pledged at the first default by the debtor b. Oral renunciation by the pledgee of the contract of pledge c. Return by the pledgee of the thing pledged to the pledgor d. Sale of the thing pledged at public auction at net proceeds less than the amount of secured loan
c. Return by the pledgee of the thing pledged to the pledgor
S and B entered into a contract of sale of goods to be delivered to B through a common carrier. B has sent post-dated check to S as payment for the price. S delivered the goods to the common carrier for transmission to B. Before the arrival at the destination of the goods and before S the encashment of the post-dated check, B becomes insolvent. What right is available to S? a. Right of possessory lien b. Right of resale c. Right of stoppage in transitu d. Right to rescission
c. Right of stoppage in transitu
It refers to the right of the data subject to suspend, withdraw or order the blocking, removal or destruction of his or her personal data from the personal information controller's filing system. a. Right to damages b. Right to access c. Right to erasure d. Right to be informed
c. Right to erasure
Which of the following is not allowed to become the subject matter of contract of real estate mortgage? a. Building b. Just compensation of expropriated land c. Shares of stocks of real estate company d. Condominium unit
c. Shares of stocks of real estate company
What is the nature of liability of retailer in case of failure of both the manufacturer and distributor to honor the express warranty in a consumer product? a. Jointly b. Solidarily c. Subsidiarily d. Directly
c. Subsidiarily
Which of the following cases shall make the insurer liable on the insurance? a. A house was insured against fire. Unknown to the parties, it was already gutted by fire two(2) days before the insurance was taken. b. An unsecured creditor insured the vehicle of the debtor. The debt remained unpaid when the debtor died. c. The company insured the life of its Manager. The Manager was already terminated from his employment at the time of his demise. d. None of the foregoing.
c. The company insured the life of its Manager. The Manager was already terminated from his employment at the time of his demise.
If there are reasonable grounds to fear the destruction or impairment of the thing pledged without the fault of the pledgee, what is the legal remedy available to the pledgor? a. To ask that the thing pledged be judicially or extra-judicially deposited. b. To ask that the thing be deposited with a third person. c. To demand the return of the thing pledged, upon offering another thing in pledge, provided the latter is of the same kind and quality. d. To demand the extinguishment of the contract of pledge.
c. To demand the return of the thing pledged, upon offering another thing in pledge, provided the latter is of the same kind and quality.
Minor, a ward, sold in writing the cellphone of his father, his legal guardian, to an insane, during the latter's lucid interval at a price of P10,000 when the cellphone's book value is still P15,000 resulting to lesion more than ¼ the value of the thing sold. What is the status of the contract of sale? a. Rescissible b. Voidable c. Unenforceable d. Void
c. Unenforceable
It refers shall mean any policy or contract on either a group or on an individual basis issued by an insurance company providing for benefits or other contractual payments or values thereunder to vary so as to reflect investment results of any segregated portfolio of investments or of a designated separate account in which amounts received in connection with such contracts shall have been placed and accounted for separately and apart from other investments and accounts. a. Property insurance b. Surety contract c. Variable contract d. Marine insurance
c. Variable contract
What is the ground provided by law when the unpaid seller exercises right of stoppage in transitu? a. When the goods sold are perishable b. When the contract of sale has no credit term c. When the buyer becomes insolvent d. When the credit term has expired
c. When the buyer becomes insolvent
X, husband , took a life insurancepolicy on the life of Y, the former's only child. The beneficiary appointed in the policy is Z, the wife of X.The "assured" in the instant case is: a. X b. Y c. Z d. YandZ
c. Z
Michael Fermin, without the authority of Pascual Lacas, owner of a car, sold the same car in the name of Mr. Lacas to Atty. Buko. The contract between Atty. Buko and Mr. Lacas is --- a. void because of the absence of consent from the owner, Mr. Lacas. b. valid because all of the essential requisites of a contract are present. c. unenforceable because Michael Fermin had no authority but he sold the car in the name of Mr. Lacas, the owner. d. rescissible because the contract caused lesion to Atty. Buko.
c. unenforceable because Michael Fermin had no authority but he sold the car in the name of Mr. Lacas, the owner.
A warranty inherent in a contract of sale, whether or not mentioned in it, is known as the a. warranty on quality. b. warranty against hidden defects. c. warranty against eviction. d. warranty in merchantability.
c. warranty against eviction.
M issued a promissory note to P which states "I promise to pay P P10,000." The promissory note was issued in exchange for a bag of marijuana. P subsequently indorsed and delivered the said promissory note to A. Which of the following statements is correct? a. A can validly collect from M if A acquired the promissory note in good faith and for value. b. A can go after P only if M will dishonor the note and only if a corresponding notice of dishonor will be given to P. c. A cannot validly collect from M if A has knowledge of the infirmity in the instrument thus making A a holder not in due course. d. A can validly collect from P because the latter violated his warranty.
d. A can validly collect from P because the latter violated his warranty.
On January 1, 2001, A obliged to sell a specific dog to B if the latter will pass the CPA board exam. The specific gave birth to a puppy on March 1, 2001. B passed the CPA board exam on October 1, 2001. Meanwhile, A sold and delivered the same dog to C on July 1, 2001. Which of the following statements is correct? a. B obtains real right over the specific dog on October 1, 2001. b. B obtains personal right over the puppy on July 1, 2001. c. C shall be entitled to the puppy. d. C has better right against B over the specific dog.
d. C has better right against B over the specific dog.
Which of the following is copyrightable? a. News of the day b. Philippine Financial Reporting Standards c. System d. Computer programs
d. Computer programs
D borrowed P100,000 cash from C. In order to secure the said loan, D mortgaged his specific car to C. The deed of loan with mortgage provides that in case of D's default in the payment of the secured loan, C will become the automatic owner of the mortgaged car in full satisfaction of the loan. Which of the following statements is correct? a. The contract of loan is void. b. The contract of mortgage is void. c. C becomes the owner of the mortgaged car upon D's default of the loan. d. D remains to be liable to C for the loan in case he defaulted in the payment of the secured loan.
d. D remains to be liable to C for the loan in case he defaulted in the payment of the secured loan.
Which government agency is responsible for prescribing rules and regulations for the visible placement of price tags for specific consumer products and services? a. Department of Health b. Department of Agriculture c. Department of Information and Communication Technology d. Department of Trade and Industry
d. Department of Trade and Industry
It refers to information generated, sent, received or stored by electronic, optical or similar means. a. Electronic Signature b. Electronic Document c. Electronic Key d. Electronic Data Message
d. Electronic Data Message
In which of the following accessory contracts may the owner of the foreclosed property repurchase the said collateral from the highest bidder? I. Contract of pledge II. Contract of chattel mortgage III. Contract of real estate mortgage a. I and II only b. I and III only c. II and III only d. III only
d. III only
B borrowed P100,000 from L. In order to secure his obligation, B mortgaged his house under contract of chattel mortgage. B defaulted in the payment of the principal obligation. Which of the following statements is correct? a. The contract of chattel mortgage is not binding because the subject matter of the chattel mortgage must be personal property. b. The contract of loan is void. c. Unsecured creditor of B cannot ask for declaration of nullity of the contract of chattel mortgage because of the concept of relativity of contract. d. L may still foreclose the chattel mortgage constituted over the house.
d. L may still foreclose the chattel mortgage constituted over the house.
If two competitive biddings failed, what alternative method of government procurement may be availed by a procuring entity? a. Limited Source Bidding b. Direct Contracting c. Repeat Order d. Negotiated Procurement
d. Negotiated Procurement
After a policy of life insurance made payable on the death of the insured shall have been in force during the lifetime of the insured for a period of two (2) years from the date of its issue or of its last reinstatement, what ground may be invoked by insurance company to prove that the life insurance policy is void ab initio or rescindable? a. Fraudulent concealment by insured or his agent b. Misrepresentation by insured or his agent c. Both a and b d. Neither a nor b
d. Neither a nor b
On January 1, 2022, S sold and delivered a specific lot with an area of 100 square meter to B at a price of P1,000 per square meter. On July 1, 2022, B discovered that the actual area is only 91 square meter. What is the remedy available to B? a. Accept the 91 square meter and pay P91,000 b. Cancel the contract of sale c. Either a or b d. Neither a nor b
d. Neither a nor b
Which of the following stipulations or agreements is valid? a. A stipulation in a policy of insurance for the payment of loss whether the person insured has or has not any interest in the property insured b. An insurance policy executed by way of gaming or wagering c. Both a and b d. Neither a nor b
d. Neither a nor b
S orally authorized B to sell his specific house at a price of P1,000,000. B orally sold the said house to V in the name of S at a price of P1,500,000 when its cost to S is actually P2,500,000, thereby, S suffered lesion by more than ¼ the value of the house. Payment of the price and delivery of the house will happen after one month after the date of agreement. What is the legal remedy available to the injured party? a. File an action for annulment of contract b. File an action for declaration of nullity of contract c. File an action for rescission of contract d. None of the above
d. None of the above
A person may insure himself in the event of failure of his ticket to win in: a. Lotto b. Horse race c. Sweepstakes d. None of the foregoing
d. None of the foregoing
Who among the parties is considered "public enemy" and, therefore, may not be insured? a. Abbu Sayaf Member b. North Korean communists c. MILF members d. None of the foregoing
d. None of the foregoing
What is the frequency of the right of the buyer to avail of the grace period without additional interest in sale of residential real property in installments? a. Once every two (2) years b. Once every three (3) years c. Once every four (4) years d. Once every five (5) years
d. Once every five (5) years
In case of suicide committed by the insured in the state of insanity, when shall the insurer be liable? a. When suicide is committed after the policy has been in force for a period of two (2) years from the date of its issue or of its last reinstatement. b. When suicide is committed after the policy has been in force for a period of one (1) years from the date of its issue or of its last reinstatement. c. When suicide is committed after the policy has been in force for a period of three (3) years from the date of its issue or of its last reinstatement. d. Regardless of the date of commission of suicide.
d. Regardless of the date of commission of suicide.
On January 1, S delivered a specific laptop to B under a sale or return arrangement. S gave B up to April 1 to return the specific laptop. On March 1, the specific laptop was destroyed by fire without B's fault. Which of the following is correct? a. B is not required to pay the price of the laptop because the obligation is extinguished by fortuitous event. b. S is still the owner of the specific laptop since B has not yet signified his approval or satisfaction of the said item. c. B will become owner of the specific laptop only upon full payment of the price. d. S can collect the price even if the loss is without B's fault.
d. S can collect the price even if the loss is without B's fault.
Which of the following instances will extinguish both the contract of loan and contract of pledge? a. Automatic appropriation by the pledgee of the thing pledged in case of default by the debtor in the payment of the secured loan b. Renunciation in writing by the pledgee of the pledge c. Voluntary return by the pledgee of the thing pledged to the pledgor d. Sale of the thing pledged in public auction at net proceeds lower than the amount of the secured loan
d. Sale of the thing pledged in public auction at net proceeds lower than the amount of the secured loan
It refers to alternative method of government procurement whereby the Procuring Entity simply requests for the submission of price quotations for readily available off-the-shelf Goods or ordinary/regular equipment to be procured directly from suppliers of known qualification. a. Limited source bidding b. Direct contracting c. Repeat order d. Shopping
d. Shopping
Aligada orally offered to sell his two-hectare rice land to Balane for P 10Million. The offer was orally accepted. By agreement, the land was to be delivered (through execution of a notarized Deed of Sale) and the price was to be paid exactly one-month from their oral agreement. Which statement is most accurate? a. If Aligada refuses to deliver the land on the agreed date despite payment by Balane, the latter may not successfully sue Aligada because the contract is oral. b. If Aligada refused to deliver the land, Balane may successfully sue for fulfillment of the obligation even if he has not tendered payment of the purchase price. c. The contract between the parties is rescissible. d. The contract between the parties is subject to ratification by the parties.
d. The contract between the parties is subject to ratification by the parties.
Which of the following statements concerning the vendor's liability for hidden defect is correct? a. The vendor is liable only if the reason of the loss of the thing with hidden defect is the hidden defect. b. The vendor is liable only if he was aware of the hidden defect. c. The vendor is not liable for the hidden defect if the loss is due to fortuitous event or fault of the vendee. d. The vendor is liable even he was not aware of the hidden defect.
d. The vendor is liable even he was not aware of the hidden defect.
Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties could not agree which of five lots he owned Lino undertook to sell to Ramon. What is the standing of the contract? a. Unenforceable b. Voidable. c. Rescissible. d. Void.
d. Void.
X, 18 years of age, took a life insurance on his own life. Who among the following is disqualified to be the beneficiary in the life insurance contract? a. X's estate b. X's illegitimate child c. X's father d. X's grandmother
d. X's grandmother
S sold a car at an installment price of P100,000 payable in equal monthly installment of P10,000 per month to B. In order to secure the payment of the price, B mortgaged back the said car to S under chattel mortgage. After payment of seven monthly installments, B defaulted on the remaining three installments. This prompted S to foreclose the chattel mortgage resulting to deficiency from the public sale. Which of the following statements is correct? a. S may recover the deficiency arising from the foreclosure sale through exact fulfilment. b. S may still ask for the cancellation of the sale. c. S can never recover the deficiency arising from the foreclosure sale. d. S may still file civil action to collect a sum of money.
C. S can never recover the deficiency arising from the foreclosure sale.
Engineer Carlo Lasi is an employee of Orange Incorporated. He is assigned to the research and development department with the tasks of inventing new technology to be patented by the company. During his breaktime, Engineer Lasi is using the company laptop assigned to him to author a novel. He was able to finish a novel entitled "Ang Manilenyo" using the company's resources including but not limited to laptop, printers and bondpapers. Who shall be entitled to the copyright over the said novel? a. Always Engineer Carlo b. Always Orange Incorporated c. Generally Engineer Carlo unless expressly granted to Orange Incorporated d. Generally Orange Incorporated unless expressly granted to Engineer Carlo
a. Always Engineer Carlo
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
P orally authorized A to sell his land at a price of P100,000. A orally sold the land in P's name to B, an insane person, at a price of P20,000. Delivery and payment will happen after one month. What proper legal remedy is applicable to the injured party? a. Action for declaration of nullity b. Action for annulment of contract c. Action for rescission of contract d. None because the contract is unenforceable
a. Action for declaration of nullity
X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father. Unwilling to do so, X's heirs filed an action for specific performance against Y. Will their action prosper? a. No, after more than 6 years, the action to enforce the verbal agreement has already elapsed. b. No, since the sale cannot under the Statute of Frauds be enforced. c. Yes, since X bought the land and paid Y for it. d. Yes, after full payment, the action became imprescriptible.
a. No, after more than 6 years, the action to enforce the verbal agreement has already elapsed.
It refers to a type of policy in which the value of the thing insured is not agreed upon, but shall be ascertained at the time of the loss. a. Open policy b. Valued policy c. Running policy d. Dragnet policy
a. Open policy
As a general rule, all products sold in the Philippines shall bear price tags and/or price lists in a. Philippine Peso b. Foreign Currency c. a or b d. Both a and b
a. Philippine Peso
Acme Cannery produced sardines in cans known as "Sards." Mylene bought a can of Sards from a store, ate it, and suffered from poisoning caused by a noxious substance found in the sardines. Mylene filed a case for damages against Acme. Which of the following defenses will hold? a. The expiry date of the "Sards" was clearly printed on its can, still the store sold and Mylene bought it. b. Mylene must have detected the noxious substance in the sardines by smell, yet she still ate it. c. Acme had no transaction with Mylene; she bought the "Sards" from a store, not directly from Acme. d. Acme enjoys the presumption of safeness of its canning procedure and Mylene has not overcome such presumption.
a. The expiry date of the "Sards" was clearly printed on its can, still the store sold and Mylene bought it.
This data privacy principle means that the data subject must be aware of the nature, purpose, and extent of the processing of his or her personal data, including the risks and safeguards involved, the identity of personal information controller, his or her rights as a data subject, and how these can be exercised. a. Transparency b. Legitimate purpose c. Proportionality d. Morality
a. Transparency