Midterm 14 November, questions and answers PDF

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Business Law 1: MIDTERM 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. Which does not extinguish an ...

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Business Law 1: MIDTERM 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. Which does not extinguish an obligation? a. Annulment c. prescription b. fulfillment of suspensive condition d. none ________2. X owes Y P500,000 payable on September 20, 2002. Z, a third person pays Y without intention of being reimbursed by X. a. Z can ask Y to subrogate him in his rights; the action would be against W, the guarantor b. Z’s payment to Y will be considered a donation in favor of X c. Z cannot ask Y to subrogate him in his rights because payment was without X’s consent d. None of the above ________3. Which is a special mode of payment? a. Application of payment c. dacion en pago b. cession en pago d. all of the choices ________4. Which is not a requisite of cession en pago? a. More than one debt and more than one creditor b. Insolvency of the debtor c. Title to the properties is transferred to the creditor d. None of the above ________5. Which is a characteristic of dacion en pago? a. Delivery transfers ownership b. Generally affects all properties of the debtor c. More than one debtor is required d. Full or partial insolvency is required ________6. The act of depositing the thing or amount due with the proper court when the creditor does not desire or cannot receive it subject to formalities of the law a. Cession en pago c. dacion en pago b. Consignation d. application of payment ________7. Which is not a requisite of valid consignation? a. There is a valid debt that is due b. Tender of payment by debtor to creditor c. Refusal by the creditor to accept tender of payment without justifiable reason d. Debtor is absent/unknown or does not show up in the place of payment ________8. Despite of fortuitous event resulting to the loss of the specific thing, the obligation is not extinguished when a. Obligation arises from crime b. The law so provides c. The debtor incurred in delay d. All of the above ________9. If the thing is determinate and it is lost due to fortuitous event, the “obligation is extinguished”, meaning a. Debtor is released from his obligation; it is as if he has made payment b. There arises a new obligation to deliver a thing that is exactly the same as that lost c. If the debtor is in default, the “extinguished” obligation is converted into monetary consideration for damages d. None of the above ________10.

Meeting in one person of the qualities of creditor and debtor

with respect to the same obligation a. Condonation

c. confusion

b. compensation

d. novation

________11. X obliged himself to pay Y P100,000. X executed a negotiable promissory note in favor of Y. Y endorsed it to Z, then Z to W, then W to X. The obligation of X to Y is extinguished by a. condonation c. confusion b. compensation d. novation ________12. Compensation where one party can claim compensation while the other cannot a. Legal c. facultative b. conventional d. judicial ________13. Five sacks of rice cannot be compensated by five sacks of sugar because a. Each one of the obligors must be bound principally and the be at the same time principal creditor of the other b. If the things due are consumable, both debts must be of the same kind and quality c. The two debts must be due d. Both debts must be liquidated and demandable ________14. X obliged himself to deliver to Y a kilo of shabu. Later, they agreed that X will deliver to Y P50,000 instead of shabu. a. Original obligation is valid; novation is valid b. Original obligation is valid; novation is void c. Original obligation is void; novation is valid d. Original obligation is void; novation is void ________15. The money or currency which the debtor may compel the creditor to accept in payment of a debt, whether public or private, is known as a. notes payable to order c. legal tender b. bill of exchange d. mercantile document ________16. Which does not extinguish an obligation a. Breach of contract b. Prescription c. Remission of debt d. Merger of rights of creditor and debtor ________17. The creditor is bound to accept payment or performance by a third person a. Who has the interest in the fulfillment of the obligation b. If stipulated in the obligation c. When obligation becomes due d. When debtor is guilty of delay ________18. Whoever pays for another can recover only insofar as the payment has been beneficial to the debtor a. If he paid without the knowledge of the debtor b. If he paid according to the will of the debtor c. If he paid with the knowledge of the debtor d. If he paid in good faith ________19. Tender of payment and consignation shall release the debtor from responsibility a. When the creditor is absent or unknown or does not appear at the place of payment b. When the creditor is incapacitated to receive the payment at the time it is due c. When the creditor refuses without just cause to accept payment d. When the creditor, without just cause, refuses to give a receipt for the payment ________20. Consignation shall be made by a. Tendering of payment to the creditor b. Depositing the things at the disposal of judicial authority c. Announcing the consignation to the interested parties d. All of the above

________21. Which is not true about condonation? a. It is essentially gratuitous b. Acceptance by the obligor is optional c. It may be express d. It may be implied ________22. In novation, if the original obligation was subject to a suspensive condition a. The new obligation shall be subject to no condition b. The new obligation shall be subject to suspensive condition c. The new obligation shall be subject to resolutory condition d. The stipulation that the new obligation shall not be subject to condition shall be valid ________23. Which is a characteristic of cession en pago? a. Does not affect all the properties of the debtor b. Plurality of creditors is not required c. Not an act of novation d. May take place while the debtor is solvent ________24. Remission may be made by the creditor either verbally or in writing a. Implied remission c. Express remission b. Partial remission d. total remission ________25. The offer creditor is known as a. consignation b. application of payment

made

by

the

debtor

to

pay

his

obligation

to

his

c. tender of payment d. dacion en pago

________26. In order that condonation may extinguish an obligation involving a movable property whose value exceeds P5,000 a. It is sufficient that the condonation and the acceptance are in writing, even a private one. b. It is required that the condonation and the acceptance be in a public instrument. c. The delivery of the document evidencing the debt is sufficient since the property is movable. d. The condonation and the acceptance may be made orally. ________27. Which of the following is not a requisite of legal compensation? a. That each one of the obligors be bound principally, and that he be at the same time a principal creditor of the other. b. That the two debts be due. c. That both debts be liquidated and demandable. d. That the debts are payable at the same place. ________28. Delta borrowed P50,000 from Charlie. Subsequently, Delta proposed to Charlie that Tango would assume Delta’s debt. Charlie accepted the proposal. This substitution of debtor is known as a. expromision c. delegacion b. tradicion d. dacion ________29. a. P5,000 b. P1,000,000

All bills are legal tender up to c. P100,000 d. any amount

________30. Legal compensation shall not be proper in three of the following cases. Which is the exception? a. commodatum b. civil liability arising from a criminal offense c. gratuitous support d. bank deposit ________31. D obtained a loan from C in the amount of P50000.00. Unable to give cash on due date in payment of his loan obligation, D proposed to C that he would be giving instead his diamond ring to settle his debt. C agreed and accepted ring from D. The new agreement between D and C involved both:...