Business Law 1 Prelim E. PDF

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Business Law 1: PRELIM EXAMINATIONName: _______________________________ Score: Section:MULTIPLE CHOICES. Choose the BEST statement from the given choices. Write only the letter (in CAPITAL) of your answer on the blanks provided. Erasures and alterations of any kind are strictly not allowed!________1...

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Business Law 1: PRELIM EXAMINATION Name: _______________________________ Section:

Score:

MULTIPLE CHOICES. Choose the BEST statement from the given choices. Write only the letter (in CAPITAL) of your answer on the blanks provided. Erasures and alterations of any kind are strictly not allowed! ________1. 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 writes 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. ________2. A solidary obligation is one in which each of the debtor is liable for the entire obligation or debt, and each of the creditor is entitled to the entire credit. Obligation 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 obligation. ________3. Payment of 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. ________4. 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 obligation is: a. Joint c. Solidary b. Divisible d. Indivisible ________5. The creditors shall have a right to indemnity 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 last least expensive things b. The value of the most expensive thing c. The value of the last thing which disappeared d. The value of the first thing which disappeared ________6. 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 c. P8,000 b. P6,000 d. P4,000 ________7. 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. ________8. 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 in turn has to give B, C and D P1, 000 each. B. A could recover P2, 000 only from X. C. A could recover P1, 00 only from X. D. A could recover P8, 000 from X. A, in turn, has to give B, C and D. ________9. Mr. AB owes Mr. CD P150, 000 due on August 31, 1987. Mr. AB executed a mortgage in favor of Mr. CD on Mr. AB’s building to guaranty the obligation. On August 10, 1987, the mortgage building was totally lost due to a strong typhoon. On August 12, 1987, 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 though a fortuitous event 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 care. ________10. Mr. ABC is obliged to give Mr. XYZ his only car on July 15, 1987. Mr. ABC did not deliver the on July 15, 1987. On July 20, 1987, 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 this was lost due to fortuitous event, the obligation is extinguished. B. No. the obligation is extinguished even if the debtor is already to default because the debtor can plead impossibility of performance. C. Yes. Mr. ABC is already in legal delay, thus, the obligation to deliver the specific thing is converted into monetary claim for damages. D. Yes. The creditor can instead demand for a substantive equivalent in value from the debtor. ________11. A, B, and C borrowed P24,000 from Y and Z and signed a promissory note dated January 15, 1987 and due within six months. How much can Y collect from A? A. P12,000 C. P4,000 B. P8,000 D. P24,000 ________12. This is the promissory note: “We promise to pay A, B and C the sum of one hundred eighty thousand (P180,000) pesos within 60 days. Signed by X, Y and Z.” a. X is obligated to pay A P20,000. b. X is obligated to pay A P60,000. c. X is obligated to pay A P180,000. d. X is obligated to pay A, B and C P180,000. ________13. OE is obligated to give OR a 1982 Mitsubishi 4-door sedan Lancer with a plate number NBA 123 on September 30, 1989. On October 10, 1989, 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 fortuitous event and no demand 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....