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The R.eview School of Accountancy

# 735-9807 & 734-3989
BUSINESS LAW: Pre-week Lecture Atty.M. S. Bonafe
1. A, B, and C as partnens in a padners in a partnership s,tipulated and inutually agreed Urat R sfratf66?ilrare in the profits
and losses. Is the agreement valid as among the partners onfy-and not against third perscns? '--
a. Yes, because among the partners it is valid to exernpt one ftorn sharirg in the profits and losses,
Yes, valid as long as third percons are not
'r Not valid stipulation exemptirp a partrrcr frorn sharing prof,rB and lcses.
d. Not valid as against third persons or partrrership creditors.
2. A newly admitted partner shall be liable fior the pre-o<isting obligations of the parbrership at the tinre of his admissbn in
fa,t.lrof partnerchipcreditorsuptotheextentof hiscapital contribution..
'',t y,,_t,t
,;r iridustrial parher shall not share in the losses and his share in the profits shall be
under the
c. Second staternent is falsg first b tru.
d. Both are false statements.
First stdrertent is false, second statement h true.
are true.
3. Three of he following dissolve a partnership, qISp!:
.r. Partnership business has bemme unlawfulT
f . Death, civil interdiction or insolvency of a partner.
4, Sp'rral power
of attorney is necessary in the folbwing c
a. To make such paymenE usually considered as ads of admioEt&!!o!;
compomise, to submit questions to arbrtration;
To bind the principal
in a contr I of
,t,.,tl -->y*rJ'
.j. Any other act of strict dominion. tr
5 H pa:trrcr who is liable to the partnersh,p fir,ldrmag", O* to his fault may claim ffih.iil#.iif tnrough hii
extraordinary efforts in otlrer activiths of the partner:;hip unusual profits have been reEiiTecl.
i ,, ,. , .
r. !
p if he fails,to deliver hb prornbed contrihrtbn and shall be in delay from fiE
yr ).t11,r1
l', ff ,Jrl(t.l
c. First is tnre, second is false. r,6{rtqil,
_rD.( a,
d. 8oth are true.
6. A contributed P1M, B contributed PtM, and C contributed services. They agreed to divide the prcfts.a:r_-d_lqgsqs eqrally. In
case of loss of P.3M, fur how much, if any, is C li,able?
a. Nothing, because an industrial partrer is exqnpt from losses.
b, P.1M but with reimh,rrsement from A ard I equalty.
c. A and B alone shall slouder the loss at C's option.
P.1M -.r
7. Suppose in the preceding case, there was no_ agreernent as b
sharing, what will bie the share of C in fie profit?
/p. r Just and equitable under the circumstarrces d. Court to fix his share.
8. Based on the preceding
number, what sfrall be his share in the loss?
c. PIM
9. A subscribed to 1,000 shares of sbck of X Corporation and pid
25o/o of the said sr.bscription. Can he vote all his
subscribed shares?
a. No, because the subscriptiori has rrct been tully paid.
[tt ['llrl- ' u''rtlct\
b. No,becausehissrureshavebecornederinquentshares.
ftLtr.l(.,1[rr,[, 1,
Yes, as regards the paid percentage
of fte subscription.
, to, because shares allfiough unpaid but mt delinquort can be voted.
10. X C-orporati,on posted
a P1M proft in its realty business and its real estate has appreciated in value to the tune of
The board then declared dividenG computed on the basis of P5M representirq pofiE ard appreciatbn in value of its
real estate. Is the dividend declaration valki?
a. Not valid because there was no
ratification by the outstanding capital stock.
b._ Valid beirg based on profits and irrcrements in the value of the corporate 6sets.
because divirlends mustconre mty from the profits.
: i-
dl Valid if crcditors do not object nor protest against the sanre.
a. Equal to the shares of A and B
b. lust and equitable under the circumstances
. ww4v'n ,w
11. A, subssibed to 100 stnre of X corporation, payhg 25olo thereof. Despite the dernand by a for the issuance of sbck
certificate, the corporation refuses b issue one corresponding to lhe 25o/o paid. Meanwhile, the corporation has become
insolvent and A now refuse to pay hb unpaid balance on his subscriptbn. Is the refusal to issrc a stock certifrcate
flot valid, because stmk certificate can be issued for the paid portion of the subscription.
b. ) Valid. becarrse sbck cst.ift te can onlv be issued after full oavme-nt of the srrhsrrintbrr (U. ) VatiO, because stock cqtific te can only be issued after full payment of the subscriptiorr.
tl Valid as regards the unpaid percentage on the subscriptbn.
d. Not valid because only delinquent shares may be denied sbck ceftifrcate.
12. Based on tle facts in the preceding number, can a validly retuse to pay the unpaid balance on his zubscription now that
corporation ha
/a. )
no, uMer the potectbn of creditor:;
No, under the il of corporate frction.
tlrfr,nfnr c( pqcrt) i&,til
because of the insolvency of the corporation which also extinguished his obligation to pay the balance.
i Ye,s,
because of the denial of his rlg
L-y-iaws may provide that ttre hold
iX the members of
the rfard.
by-la',rrs may provide that no officer r.
: ilrst statement is false, second is true. c. Both are Eue. r2^-
b. Setond is false, first is bue.
;: ffi
' D'r' ttov -
tlar:,rii,, of the fottowins must q4f@Br rre enirrppirFslcepc
- ^n^J:
a. Directors
c^ Incdrporators z
h Trustees
- (d.)
Officers n-(lm
t\ &?af
Private corporations have the fiOllowing a 1butes, qxcept:
wa v'
att'NY' '
It is an /
rs' g=!:
) *tlaary't'. tr'^'n &5rDE\15
ttl*y i.allavw or charter.
t1 It has t
a. It nas the pow rties expressly authorized by hw or incilent to its cre
irl thiee of the fulhwing cases, all shares have voting rights, dxcepti
t\ Electionof direcbrs
rcr r*i(lti
Dissolutionof thecorporation
b. lricrease or decrease of capital stock ' '
d. Merger or cmsolklation
C, D, and E received the highest number of votes and thus proclaimed as elected. F received ten (10) votes less than E.
Subsequently, E sold his shares to F, Who, between E ard F has the right to attend as direcbr?
a. E is the director because hb term b one year until his successor is elected and qualified.
b. F is the director because he has bought the shares of E.
c. Both of them shall be direcbrs.
ileither of thenr shall be dkecu.
18. ABC corporation has an autfprized capital sbck of PlM divkled into 50,000 co{nnrln shares and 50,000 prefuned
shares. At iE inception, tfe corporation offered fur subscription all ste comnpn shares. However, only 40,000 shares
were subscribed. Recently, the direcors thot{ht of rabing additicnal capital and decided b offer to tlre publk all the
res have pre-emptive
right b the
81- to*s
of any class in proportion to thelr
d. No, because he has waived this right vyhen Ire subacribed to a part on ly of the issuarrce of shares.
19. B^ased on the facts of the precedirg number, would X also have pre-emptive right to BE 50,000 preferred shares?
,6) Yes, because all stockholderi nave pre-emptlve rQhts to all issues of ihgres
glAgq- in proportion to their
b. No, because pre-emptive rights do not apply to the issuarrce of unissued shares.
c. Yes, because pre-ernptive r@hE apply only to the issuarrce of unissued shares.
d, No, because X has waived his pre-emptive rights to the issuance of prefened
shares when tre subscribed b the
cornrTon shares,
20, The corporation has a nine-mernber board of directors. Two of the members soU their shares while two others are
Mrr\c, il
'r'' rr"' i
Three d. Four
the outstanding capital stock?
/, "
rrtrgolr pqNi +0 {e\
hrlgr,r .r
d. Amerdment of the artlcle of incorporation
22. A direcbr of a corporation may be rernoved by:
a. Vote of rnajority of the ouBtanding capital stod c, nl.l
of the .fo,ctholders d.-'zlz I stock -+
w 1i/wrfuui
23. Inthematterof managernentof thecorporation, thisissupreme:
$ oArqoR rc1"r1'r'1r';
o"l{ J
',vtII (Al(f
c- SbckltoHers
24. Three of the llolbwirq are requisites tur the existence of
facto corpora
a. Incorporated ,tio", u ,uiid lr* 9VC
use wers
Attenrpt in good faith to organize
Exbting in
J; l lr;ee of the following are required fur incorporators, except:
pt NI(
, arq.'
.: They must be natural
persons c. Not less than five nbr npre than fifteen
b. All of legal age dtlapnty rnust be citizens of the Philippircs
iC. i I rkler in due course has the bllowing rights, except:
.,, He holds tlre instrurnent fnee fronr defucls of title of prior parties.
. tl,lorc^(
d.ue cGurk (
'" -
a President
b. Chairnun of the Eoard of directors
, F
iee t'i om defenses of prior parties among thernselves.
against all
liable thereon.
, i'trlds the instrument as if it were non-negotiable.
[D[ ,
rhe fotlowing is rnt negotiable instrument?
Pay to the order of Pedro Cruz P1M (Sgd) lose Santos To: A or B
i . , pnrmise to pay to the order of the bearer P1M. (Sgd) M
e Due to Bearer P1M or a BMW car worth P1M at his option. (Sgd) M
d Pay to the order of myself PlM. (Sgd) D To: W
i3. llree of the following are requisites to be a holder in due course
the instrument is complete and regular upon its face;
: Tnat the holder took it in
qood fdith and for value
c l'hat he becanre the fpber of it before it was overdue and without notice that it had been
previously dishororcd if
Sr::h was the fact;
6. )
mut he had rrc krcwl@e of arry fact whish would impair ttre validity of ttre instnrment or render it valueless.
2 -1. A rla<es a mte payable to B or order. Tte blbwing are the indorsers of the note in the order of their indorsements: B,
l-'. '-, Fl trolder) and G(subsequent hotder). Ttre ncite is diihbhored rn-Ure hands Of F, who notifies B, e, D, E. Whieh is
frir.. COITCT]I?
.r. The notice given by F to B operates to the benefit of C, D, E, and G.
notice to C inures to the hnefit of D, E, and G.
notice to D inures to the benefit of E and G.
( t{l The notfe to C inures b the benefit of 8. hdor f'l
,^,{o , r,e
la. (fud) A To: B
hb absence X.
(Sgd) A To: B and X
P who endorses it to x in tfiis manner:
b X. (Sgd) P."
Later X, without indorsing tjrc note delivers the sann to Y. The note is subsequently dishonored by M. May Y proceed
against M for the note?
a. No, because the special indorsement of P has made the note tD be payable to order and must be endorsed b
or F
Yes, because an instrument originally payable b harer rernains to_be payable b bearer depite spechl
''0g(r hc,nv
b.q,.6, '
c. Yes, because M, as maker, is absolutely liable to pay the insbument in the hands of any holder. c.
32, Th-e neqouabte instrumenr b notdischarsst
"6G 'aL;*1
k"1 d^r'(n'3 I
oomioffi rrouer rrereoldror) at, or after nnttri in his own u"nat, ='v
eV the irten[onalcancellation of the irsEumqq!_
t ,. . t
No, because Y diJ mt acquire title to the instrurnent due to lack of proper indorsement. .
r:r;;yt";;ff;; **"i, *"O-,nt**i1D
d. By any.other act which discharges a simph conmct for the payment
of morrey. other act which discharges a simph conmct for the payment of morrey.
.!u,r ltrlf[ol[ rn,rv aUcti
[r[t 1q,ry
a g"[9"
33. Payfircnt by cessbn as distil uished from dation in payrnent
fne emect things ceded or assigned.
C. The prope
faction of a debt in rnoney.
d, What is delivercd by the debtor is meely a thirg to be consirlered m the equivalent of a perfornnnce
of the
RetiA: I ne Reueu, scnool ol Accluntancy
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34. A owes B P2O,OOO whhh irccame due and payable hst June 23, ZOO[. On tlmt datE A offered B P10,0O0, tfrc otly
money he then had, but B refused to accept ttn payment. A thereafter tnet C, 8's 23 year old son, b whom he gave
the P10,fi)0 wrth tfrc request that he tum ttn noney over to B. The money was stolen while C's
possession. How
rnueh rnay B still recover frorn A?
Q. - P20,(mo c. P15,000
b. P10,000 c. P
35. If a third persons pa)6 an obligation. What are the rights, whhh are available to him if he pays the obligation with the
knowledge and consent ot the debtor?
Fi,st Answer
He can recover fiom the debtor the entire annunl which he has paid.
He subrogated to all of the righB of the creditor,
i.r. Both answers are correct.
l. ilriiir lnswers are wrorB
b. True, false
43. A source of obligation mt arising frorn hw
a. Negotinrum gestio
b. Solutio indebiti
i a.
b. True, false
c. Only the first answer is conect
d. Only the second answer is correct
c. False, true
d. False, hlse
E anci
executed a promissory note binding themselves tro pay f}9,000 to X, Y and Z. The note is now due and
,reoldrddble. Can the creditors pnxeed against A alone for tste payment of tfn entire ffit.
a. fio. e;rch creditor can collect only P3,000 ftom A.
b--. ':i,, erttitr X, Y or Z can colbct P9,000 fiom A.
,,io, dcl'r..rerfitir can collect onty P1,000 ftom A.
t. YEs,
thc promissory riote is silort with respect to the r(lhts of the creditors, tfE obligation is presumed b be
lio.fii, lupBlse tlut C is insolvent, can A and I be held liable br his share in the obligation?
a. Yes, the rleirt shall be pesumed to be clividecl into as many equal shars as there are debtors.
l, Yes, but A ;.nd B will be liable proportionately.
6 t
No, the debts are corsidered distinct frrorn one alrcther.
ll), onil either A and B but not both will be liable.
Using No.51, suppose that the oblEation was about to prescribe, but X wrote a letter b A dernanding for
tire entire delrt, will this have tfie effiect of intemrpting the running of the period of prescription?
il, Yes, because the demand macle by X covem the entire debt and will therefore inure E the hnefit of the other
ies, insoFar as A is concerned hrt mt with regard to I ard C.
trr-ar-rse the demand should have been rnade to all the debbrs.
:;. ,'r,'r, ril
re creditors should have rnade the dsnand
') r
r Nc. -fsi'anrl artrEriptix]*sets
in, trcw much can Y collect from A?
,,. l!1,0(i0 c P1,000
,: i,iotrC
'ft \
.1J. rusrr'rg;
ilo. 154. how riruch can X collfft ftorn A?
i. fxJ,000 c.,.P1,000
b. P3 00c d. P
- -7
w '
41. Intlivisibility as distinquished ftom solldarity.
a. Pluralityof sufittisidivisit{e.
1n1[i'1rr roll( --'
b. When the obligation is converted into one of indemriity for daniages because of breach, the character of the
obiigatbn rernains
c. Refers to the hqal tie or vinculum
nefers to fie prtstatkil with onstimes Ble objct of Ule oblbatbn.
42. When one of the parties has broight an action to enforce the instrument he carrrnt subsequently ask br its reformatbn
injurcd party may seek rerission, even afts he has chosen fulfillrnent if the latter should be{ome impossibh.
True, urre c. False, tue
The loss or deterioration of the thing intended as a substjtute through ttre negtigence of the obligor does not render him,
liable ,
I person alternatively bound by diftrent prestations shall cornpletely perftrm one of them
45. Th nd if the undertaking is to deliver a trterminate$ring, the payment shall be nude
_-/_ ,\_
k^f1 rJ.^. \.(
b. At the domkile of the sedibr
(c)'. Whereve the thing might be at tfn nrcment the obligation was constituEd ,..-f r
{[., thr''l i
Y- Wtrererrer the thing mfint ne at the amount trre obligition is to be tutfiiled
45.Des.Bnd is mt needed b put the debtor in defiault, except
I Wnen denrand woutd Ue useless
Se parties so
c. When Ume b of Ete esserrce
d. When ttrc fixirg of the time is the controlling motive for the establishment of the conbact
ltgoA: t ne reueu, UGnOOI OI ACOOUnEnGy Page 5 Ol 19
:'/ i.,,r/,
t. ,4r,t
47. Qrlpa aquiliana'aS distinguished ftom culpa contractual
a. Proof of due diligence in the selection and supervisbn of employees is not available as a defrnse
b. Proof of the contract and of its breach is sufFrcient prima Facie b warrant recovery
nce of the defendant is merely an incklent in the perfurmance of the obllgation
or liability is the deferrlanrs negligert act or omissiofl ilsdf
shed frorn J#
iability may be waived
c. cause damage or prejudice
rr. Responsibility arising thereftcm is demandable
4.). A t,assenger on a truck was hurt but in a criminal case against the driver, saiJ driver was acquitted. The victim now
>l r.: lih c'.rrrrer of the truck for culpa contractual. May the suit still prosper?
, I\lo, tlris will constitute double
. ,
..,. llo- r ilt of the accused w6 not prcven by proof beyond reasonable doubt
1,.t1 '(, li,rlui
theexistenceof theconbactof carriageandtheinjurk=suffi.
o Yes, ligence of the driver.
i, 1. O rc ts not a requisite needed in order that obligation shall be extinguished by loss or destnrction of a thing due
a. When the obligation is to deliver the house located at 123 Recto, Avenue, Manila
When tie hing is lost without the fault of the debtor
nreoollqation is to delivera brard new Honda Strcohredorange
When tne hing is lost befure the debtor incu ed delay
i(r . the ohligor binds himself to perfonn his obligation "as
obligatiorr is
a term
i i
i Wirh a suspersive condition
" pt.,rr<f
52 I:
presupposes not only that
a Prix'rissory note
t Bill cf exchange
a. Accionreivindkatoria
b. Accbn subrogatoria
a. Pl1,000
b. P 9,000
a. Mutuality of contract
b. Freedom of contract
58. The statement "Confacts shall be obligatory in
validity are present" refurs to
( a.) Cnnsensual onfacts yr,l'
b.' Real contract .r.,g, I r<..1 i,, .{.
soon as he shall have obtained a loan" from a certain bank.
c. With a period
d. Wilfi a resolutory condition
c. Accion redhibitoria
d. lAccim paulhna :
,.,,.t :r
the obligor is able, redy and
but also rnore so, in the act of perfiorming his
payment -., r1..1','i,,
,1,.. n,L
d ObligBtiontosell
\f,t lD' lrt,t(1.1
, ...,.i,..t
i.i A r;,.:t; a loa.r of P1M ftom B which becornes due on Ocbber 1, 2003 and rnortgaged his trouse as security fur the 6t.
Ori Jti-re 30, 2003. the nnitgaged horce completety desboyed by fire thru the lault of C. A week later, B demanded
L.;.ivr'lient frcm A. ls B's dernand valid?
r r.ll,, tne oestruc'Lton of the house was rrct Uru trtc' fault of A
b i'lo, ttre obligation is one with a clefinite perrcd which is deerned intenffi fs the benefit of both the debbr ard
( c Yes, tlrc debt becornes dernandable unless A can give amther secrrty equally satisfdctory
{. Yes, the debt becomes demandable even if A can give arrcther security equally satisfactory
54. An acticn Eo imBlgn the acts of a debtor intended to defraud the creditor is
55. A owe B P11,000 due on )uly 2, 2003. B owes A P6,000 due on July 3, 2003 and P4,fi)0 due on July 10, 2003. B owes
C P11,000 due on July 3, 2@3. On July 3, 2003 I cannot pay C so B assigns to C her credit of P11,000 against A,
without the knowhdge of A. On July 10, 2003 C bies to collect from A the P11,000. How much can C cornpel A to pay?
56. Ihe conEact must bind both contracting parties, its validity or compliarrce cannot be left to the will of one of them, and
r c. Relativity of contract
d. Obligatoriness of contract
57. 8y this prirrciple, contracts take effect only upon the contractrng paftJes, their assigns or st Ccesso_
in interest
c. klativity of contrrct
d. Obligntoriness of contract
whatever ftom they have been entercd into proviffi all the requisites
'- r
c. Formal contracts
t t
, i,-,., d. Solemnaortaaatt
'' 'r
59. A conuact in whkh a person literally contracts with himself is
a. Adhesion contract c. Accessory contract
I ,
, d. Unilaterdl conbact
60. If the obliTauon of the debtor is "I will pay
vou my debt after I have arrived from abroad." The obligation is
r r,\,
1,, 1i1
c. Voidable
d. Unenforceable
g-\ Valid
)void Y,'
KgDA: lne KeugtY UCIIOOI Or ACCOUnEnGy PaEe 6 of 19
61. When a third person assures the payment of the obligatron
Uthoullthe knowledge of the debts but with Ule consent
of the creditor, there is
62. This obligation is demandable at once
With a suspersive cordition
b: ) Witha oeriod indienr,
63. The folbwing are void contracts, except
a. A contract whereby X pomised to live
cersideration of P1, 000,000.
b An ;lgreement whereby A is to render scwice as a servant to B without compensation as long as A has not paid him
A 'iole the car of B. Later they entered into a contract whereby B would rrct prosecute A in consideration of
A stipulaton in a conf,act of lease whereby the landlord can go to couft to eject the tenant in case of failure of the
latier to pay the rent agreed upon. . / I
,1 .
; i{
,:nd'l solidarily bcrund the-mselves to deliver to S a Honda motorcycle valud at P60,fi)0. The oblbatinn was not
h..5lleC ti'r'ouqh the fault of l. Thereupon, S filed an action in court against N and the cout awarded P72,000 to S
l;1i.sei'ling Ehe value of the motorcycle plus damages. Which of the following situatbn is valid?
:. if li pays S the P72,000, N can collect from R and J P24,000 each
l-' 5 ins to ccrlect P24,000 each from N, R and I to satisfy the court's award of P72,0@
i''l carr refuse to pay the penatty because it should be charged against l, the guilty party.
. if S strceeds in ollecting the P72,000 from N, N in htm can collect fr,orn R P20,000 and frorn J P32,m0.
6:. A, .r
driver driving necklessly caused rriorc physical injuries to his pcserper B and pedetrian C. As a result
c. Subrogation
d. NovaUon
When my means permit me to do so
When it depends on the happening of a specified event
as the common-law-wifu of Y without the benefit of marrbge in
c 2,3 and 4
c. Solidarily liable
d. Subsidiary liable
c. C may pmceed against A for culpa aquilana
d. C may proceed agEinst a for culpa criminal
66. i; a bus driver drivirg negligendy, killed his passenger B and
C. As a result
1 B may pruceed against X's enployer and the source of liability is the crime committed by A or culpa criminal
2. B meiy proceed against X's empbye and the source of lhbility is the breach of contract of carriage or cupa
3, C rrray oroceed against X's employer and the source of liability is the crime committed by A or culpa criminal.
4. C rnay proceed against X's employer and the source of liability is the euasi{elkt committed by A or culpa aquiliana,
which of tne following is nqJ,corect?
a--E may proceed aqainst A fur culpa criminal
;4r. b r,uy proceed agairst A fur culpa contractual
t. and 3
57 llrcre is novation of the obligation if
- - rr''rrr':11-
pavment is qlenqgl from 3
to t
-t. r)r
,6. trrue, fabe d. False, false
68. In
the inrlorser renders himself
a. 'Frimarily liable
Secondarily liable
69.8Dl and personal defen-s may be raised behveen
(. aqT lmmediate partEs
l,^r[u 9t
b. Rernote parties
C. Ltlt
lF rt lr
lrnr(c ,
c. Intervenirg parties
frLcrnl {L'r"
ir lr'lt" 'f
d. Subsequent parties
70. This is a real defenses
wi,c h,.g k.,co{o-o.,
rr./'(orJ'.'(t;li lY
a. Fraurd is irducenrnt (c._
Want of delivery of an hcormlete instrwnert
b. want of conskleration bl6uress in the absence oFph-y*ffifpressure
-( 7I. A, with vt9!egJg.l'er-SF, inurnidated her husband B to$ll hb exclusive property b her. The contract of sale is
'\ a. Rescbslble'-- c. _Unenforceable
z t .,r
11 1-:. ,(;
72. B, husband of A, in his capacity as head of $re family, sots a parapheral property
in her name to C, witlrout A's conss11.
The contract of sale is
a. Resclssible
b, Voidable
r. . ,. d.'Void
73.|n L999, at age i6.-A soE his land tur P4M payable at
in 1999,
in 2000,
in 2001 and
in 2002. In
2C[4., A wants to annul the contract on the gmund of minority. will his mtion prosper?
No, A is allowed to ask for annulment of the contract on perfection
of fl-re contract
has 4 years counted frsn the time lle becornes o Irnent of ure conh?ct
r r.{
c. No, the accepEnce of the instalknent payments amounted e
," (^,.t
d. Yes, provided A was tfien acting in good faith when he sold
-r"l'tt t
74. This contract is without effct unless ratified
g. Marriage between first degree cousins c. a guardian and his ward
Contraa of sale between two insane ptrsons d. nd and wifr
75.X, ofrered to sell to B 10O carbns of sardirres at a specified by B and subsequenEy delhaered
his btter of acceptance. In view of the shortage of the catch of sardines. A failed to deliver the cornmodities it had
offered f,cr sale. B decided to sue A. Which is correct?
a. The acceptance of the offer only oeated an option to buy
b. The absence of conslJeration distinct ftom the price makes the contrmt without any obligatory furce
ttre acceptarrce of the offer to sell by showing Ure intention to buy for a price ceftain creates a bilaEral aonUact to
*ltand buy
d. The acceptance of the offer to sell constitute a binding contract of sale provided the option was supported by a
s ufficient cooskJeration
,'6. M nmkes a negotiable pronrissory note for P10,000 with the name of the payable in blank. The note is stolen by P who
inserts his name as payee and then indorces the note to A, then A to B, and B b C, who is a holder in due course. On
C cannot enfiorce the note against
\a-z Itl c.
t,l i) cJ.
1/. ,tt lssued a note payable to bearer. He delivers the note to B. B indorsed the note specially to C, then C negoti.ates the
,r,lte l".y clelivery to D. Which of the folbwinq is rut correct?
c. D can enforce the rpte agEinst A.
d. C can enfurce the note against 8.
a. A promises to pay to the order of B the sum of US
payable in pesos at the rate of exchange prwailirE on
Aug,"tst L4,2K)2
b. A
wllh l2o/o interest thereon.
(Q * 1,fi)0 and allcosts, charges and experses including reaornble attorrrey's fees.
' .{
A P1,000 in two equal installnrents, the first payable on August 14, 20f,2 aN
September l+,2WZ
D .an enforce the rute agairst C.
fL )
O carr enforce the rrcte agairst B.
/8 Thir provisron renders a note @&[ego!E!!q
85. It contains an order to pay out of a particular
instsurnent law
Bill of lading
(5-\rreasury warrant
80. dfssirns that do not eftct ttre rregothbility of an
no1. <rr{a*
the second o#t*,
79. ,tuhich of tlre F:lbwing is not negotiable?
a. I promise b pay S or order P10,000 on or before September 14,2002 in payment of the purchase price of the
rnerchardise I bought ftom him. Sgd. A
A the or and charge
rq1S^b my mcpunt. To C, Sgd. A
. r .
Pay Eo-The-or
rl.' Pay to I or o 14, 2W2. To L
80. The
C or order P10,000, 30 days after dernand
(.!, C or ords P10,0m, 30 dap after C passes the CPA board exanrinatbns
a. ffiO within 30 days afEr ttrc death of C
d. A promises to pay B or order P1q000 on or before Augrrst L4,2@2
81. This is
a. t plodrise to pay to the order of myself P10,000 signed by A, the maker
q- Pay to the order of the Commissioner of Internal Revenue P10,000 to ABC bank. Sqd. A
. \ I prornise b pay to orde P1Q000. Sgd. A
( rv,larl
ts--z' Pay to the order of X, Y arrd Z, PIO,O00. To B. Sgd. A
negotiable instruntent is presumed to have been issled for a valuable consideration. The presumption b
lacie -
n5"tlt"$lrrlclis6rp+,. c. Absolute
Dr- Conclusive d. Final
83. A, issued a pomissory note payable to B or order fu P10,000 fur 10 bottles of whisky sold by B to A, Later B
negotiated the note b C. Subsequently, A discovered that only 5 bottle of whisky are genuine. As a result
a. C can enforce the note against A for P1Q000 regardless of whether C is holder in due course or mt
b. C cannot enforce the note against A for P10,000 even if he is a frolder in due course
of whether he is a holder in due course or not.
a holder in course.
rtificate of deposit -
lmoney @
fund rendering the instrument beyond the rope of the negoUabh
c. Certificate of stock
d. Warchouse receipt
irstrument except
trlB5a. rtt9 lwlllw wrwt vl n9wgalEltv,
a. It is not dated
b. Does not speciry the value given ,
c. Does rpt specify the place where it is drawn
Dos not narne the payee where the instrurnent b payable to order
87. A detivered to B the tollowing instrnment
"one month after date, I prcmise to pay to B P10,000. sgd A" B in<lcrced the note in blank befure maturity aM
delivered it to C for value. When dug A refused to pay and C sued B. Could C recover fuom B?
a. No, C could not sue B and hold him lhble as an indorcer because the lnstrurnent is payabh to a specified person.
b. No, the instrument is rct negotiable bcause it b neither payable b order or b bearer.
c. Yes, provided C to gilres notice if dbhmor to B, othenrvise B b discharged ftorn liability
Yo, the endorsernent will be consklered as an as[nment hence B will be lhble as an assig]pr of the instrr.rment
83. A, krowirg that therc b no such person by the nanre of B, makes out and signs a promissory mte payable b B or order.
A deliveis the note b C. C in tum delivers the mte to D without indorsernent. Later, D delivers the rrcte b E, a hoher
in cue course, whkh of the fullowing is conect?
he note can be negothted by indorsement and dellvery.
t t frrornCbecar.sea person negothtirgan irrtrumentmerelybydelivery b liableonlybthe
c E iecor,res holder only if D will indorse the instrurnent.
in:'itnlnlent is not-negotiable because it is payable to the order of a rpn-existing person
BQ A nr;lkes a negotiable note b bearer and delivers it to B fior safe keeping. The note ls negothted by B to C. Can A
refuse to pay C on the ground that the note w6 originally delivered to B br a special purpose only?
.1. Yes, A can prove that he dellt/ered the hsfurnent b B ltOr a special purpGe
b No, wherc the insUurnent is in the hands of any holder, a valid delivery thereof by all partie prior b him so a to
make tlem liable bo him is conclusively presumed.
c. Yes, berause B negotiated the note witfrout authority.
No, if C is a holder-in due course.
90. A made a negotiabh promissory note in faror of B who negotiated it to C under the followirp in6rsements. "Pay b C
after passing Ure CPA examinauon in October 1999". At maturity of the note, C presented it b A fur payment and it
was Culy pak1, C did not pass the CPA examination. Which of the followirg b conect.z
a. I-he promissory rnte is mt negouable because of the conditirn impmed.
b. The promissory note becornes rregothble because the conditbn was saUsfied.
A had rrc right to pay C and, therefure can compelled b pay again.
\ e rnay disregard the condition and make payment whether the condition is fulfilled or not.
9i. When dre instrument is cornplete but undelivered, delivery is presumed to have been made in favor of the holde, the
presumption ls
a. Conclusilre whether tplder in due course or fior value
b. Prima-facie whether holder in due course or for value
Conclusive if holder for value and prima facie if holder in due course
if holder tor valrr and conc]usirre. If holder in due course
92. The indorser who simply si;ns his narne renders hinself li{,lqto all subsequent holders as
a. Primarily liable (grlSeconOarily liable
b. Solidarily liable d. Subsidiirrily liabh
93. There b
a holder in due course
defunses may always be raised if
a. Intervening parties
b. Remote pafties
94, This is a pssonaldefense
a. Absolute defense Q<^t b"*r^rt
6l Equitable defrnse
reds "I prornbe to pay B or order P1,000,
A. The instrument is
a. Subject to a condition
b. Payable at a determinable future trme
and one who b not, since as regards thenr, real and personal
( c.
Subsequent parties
c. Real defense
d. National defrense
30 days after B receives the proceeds of his loan from ABC bank. Sgd
on dernand.
because the payrnent is indefinite
96. The tolbwing are qualificalrcrs of a corporaE{qeqq, except
S L*
a. Must own at leat one share of stock
M irg his term as director
( c. M ilppines
\,/ O books of the corpor-ation
97. Which of the fullowing is the dlsadvantage of forming a @rporauon?
a. The free and ready transferability of ownership
b. The shareholdem are not liable for the debts of the business
c. Becarce of the powa of succession, the existence of ttre entity is not aftcted by the personal vicissitudes of the
sbcftholders to fiB wishes of Ule majority subiect onf to equit&le
,, t":,,r.t-,
The drawee bank rnay not refuse b pay checK Orawn against it
a,.. If there is a "stop payment" issued by tlre drawer c. If the drawer's depcits is insufnciert
O. ) tf tne diawer is irsolvent d. When the bank receives noUce of the drawer's death
Whlch of the following is the characteristic of partnerchip as a contract
7A{) Fjt-st statqnent- If the surplm profits of the stod< corporation reaches the level eqtnl b its pakl-up capitai EE SEC
may conipel the corporation to declare dividends, otherurise it will be liable fur a suftax on improperly accurnulated
.?v.atfi stateneut -
In a corporation, two or more positbns may be heH concunently by the same person except ttut
ili: on?
shall act as President and chairman of the Board
a Preparatory
b Formal
d. Uoth staternents are tn e
h ) 8()trl staternents ae false
r Both statemenB are true
t 8-rti': ctaternents are false
9 m,ilion
8 mrllicn
r0-'l When ttre goods are delivered to the buyer
passes to the buyer,
a Upon perfer:tjgr\of the contract
b \rB)n thedelvery of the goods
a. Stock dividend
*** dividend
c. Innominate
d. Gratiutous
c. Only the first staternent b true
d. Only the second staternent is true
c. Only the first staternent b Uue
d. Only tJrc second staternent is true
c-.4 million
. d. B million
m "qgle
tor a period of seven days, ownershp of he qoods
qg2ir?^qo!_of qpryen days
d. Upon acceptance by the buyer Of the offer of tfrc seller
c. Sale of capital assets
d. Sah of Ueasury stock
0l ,'4:,. srtterlEf- The arrival of tfte tenn of a parhershp with a fixed term or period shall not dissolve the parhership
if ttr; .;..:;tners conUnue with the hriness of the parhership but sr.rch parhershtp maybe tenninated anytime dependent
' rar w,il of the cr:ntinuing partners.
.(,,1,! .statefiwif -
A partnership with a capital of P3,000 or more to mmey or prcperty, must be in a public
i,-U'ir'nt and registered with the SEC in order for the parmership b be able to maintain an action, in ib own name
-;':'.:s|. third party
2, afts 1 '/ears
of operation, ABC, a donrestic corp. wanted to declare dividends b its stockholders. The Eeasur,er
rcpoited a riet incorre after tax of P4 million. One million is being appropriated br the acquisition of the machineries to
L'.: Dought 2 rncnths fiom rnw. The treasurer llkewise reported an increase in the value of the lancl prevlously bought
io ix' tJsed as plant site tum 3 million to 5 million. What arnount of dividend can be declared by the board?
lO+. #s is not
tundamental obligation of the agent
a. fo-r-en'cter an accounting oi ffte trarsacuon
Ue 11t^(r,
To subordinate his interest in favor of hb principal if there is a conflict of interest
.c. .)To
borrow if he is autfprized to lerd
V./ t'lot to carry out the agency, even if that is the instrr.rction of tfe principal, if he knew it would result is a loss or
damage to his principal
105. Dacion en pago as disunguished fi,om sale
a. The cause is the price
(6) The objrrt e<ist ancl b specific /
There is no pre-existing obligation
cl. There is a greater degree of freedom in fuing the price
106. A clistribution by a corporatbn of shares held by it in another corporation is
107. Any director of a corporation may be removed ftorn offrce by a vote of
a. Majrcrity of the mernbers of the board
b. Majority of the sbckholders present
1(ts. A contract as a rule must be itw1Eg to be valid.
c. 2/3 of trte stockholders present
6),Ztl of the outstanding capital stock
A ta)eayer is not entitled b interest on the overpayment of tax subject of a refund because an obligation derived from
law is nqfpresumec!.-"./ ?Q<1r,r,'e q-i,v,1 h'tat
Both statenrents are true.
is false, second is true.
- hr',,rnk
r r""tr{w
Both are false. &/Second is false, first b true
109. D is indebited to C in the amount of P2fi),fi)O and delivers to c his diarnond ring by way of pbdge. If D sells the same
diamond ring b
when willT mquire ownership of the sarne?
a. From the tilne the sale is perfected between D and T
From the time T pays the price to D
From the time C consents to the sale between D and T
d' From the tirne T obtains .rtual possession of tln diamord ring
. -t.r.
( ..-
RgSA: The Review School of Accountancy Page 10 of 19
110 A buyer may sue the seller fur breach of warranty agairrt hidden deEcts of thirqs
Within 40 days norn delivery of the thing sold
Within 6 months ftorn delivery of the thing soH
Within 1 year from delivery of the things sold
d. \ iithin 4 years ftom discovery of the ftaud
tlL. Which of these t@Aspecbl torm of payment?
( or' Application of payment
- gri.'i \, i'
( I v *
Dmion en pago ' ^
c. Cesslon en pago ,
d. Tender of paymeilt and conslgnation
I i 2. The votrng_F!!!.!l.-g!nt neded in declaring cash or property dividend
( .r-
Maprity vote of the board of Directors + ,*|"-rur'
.tt k1 r"ojc,:lg
'r'- Majority vcte of the Board of Dlrectors plus the vote of a maprity of the outstanding shares
: Majority vote of the Board of Directors plus the vote of 2/3 of the outstandhg slnres
d 213 votes of the directors plus a majority of the outstanding shares
r..-[ w.,loy,
r 1 3 D br:rl1owd from C P 1,000,000 to secure the payment of which the furmer verbally agreed to
hit{ hec-tare
aqricultural land by way of antichresis and to pay t2o/o interest per annum. The contract of loan {oO an^.i.-hres}
a |,re trcth valid
b Bolh nulland rcid
The loan is valid but the antkhresb b null aM rokl wr,lk'
Ya Jhe coniract of antkhresis rs valiJ, but the loan is null aM void.
14, S arnl B agr--ed on the sats of a four hectare
at Macapagal Eoulevard br the pice of P15,000 per square
meter cn conditron that if the pke is not paid on a particular date, the sale will considered autornatically cancelled. On
tire particular date agreed upon, B did not pay S, b,ut B never asked for a
cancelhtion nor made a notarbl act
of recission. In this case-
a. The sale is cancelled as per agneenent
S can validly refuse a+ry subsqueflt offer to pay by B
t.-r B can stili pay S the price
V.' B cannot anyrnore pay Sre prke simply because the sale is cancelbd due to his failure to pay on
the stipulated date
115.Culpa aquiliana as distinguished from culpa contratual:
a. Proof of due diligence in the selection and supervisbn of employees is not corsidered a deErse.
b. Praf of the contract and its breach is sufFrcient b warrant recovery.
The negl(lent of the defiendant is only an incident in the perbrmarrce of the obligation.
/ d. ) The source of liability is Ete neqlignt act of the person causing clamage to another.
116.A, B, and C executed a promissory note in favor of D, E, and F in the amount of P9,000.00. Can the creditors prcceed
against A for the payment of the entire loan?
a. No, each creditor can only collect P3,fi)0 from A.
' b^ Yes, A.
tfre debtrs.
117.In the preceding problem, suppose C is insolvent, can B and A be held liabte for hb share in the obl[ation?
a. Yes, because the obligation is presumed to be
and several.
b. Yes. but A and B shall be
ruo,'Oecause of their
bts are distinct from one another.
No, because only either o the share of C.
118.Still in the preceding problem, suppose the obl(Tation is mixed solidarity can one of the oeditors demand payment of
the wtrcle debt foom anyone of the debtors?
No, parate from one another.
( b. / Yes, bligation.
Yes, I of the debtors.
d. No, because despite solidarity, a debbr b liable only for his share.
1 19. Indivis hi lity as d btlnguished from sol ilarity :
a. Plurality of subject is indispersable.
b. Reftrs to tfn credibrs xfrlu debtors.
May either be passive or actjve.
Refers to the pestatkcn which constitutes the object of the obligation.
120.Under the Negotiable InsUumenb Law,
be hober in due course, a person must have acquired the insbunnnt before
it is overdue. Does thb apply to the payee to whom the maker issued an overdue note?
a. Yes, because the payee is still considered a lrolder urrder the law.
b. No, because issuance to the payee is not considered a holder under the hw.
c._ Yes, because the law does not distinguished between payee and subsequent holder.
d. No, because the payee is privy to the contract between himself ard the maker.
l,21 . When one of the parties has brought an action to enficrce the contract he cannot subsequently ask fur iE refornntion.
The injured party may seek rescission even after he has chosen the fulfillment of the obligation if the latter should
(a. True, tnre b. T'rue, false c. False, fabe d. False, true
,?2 the credito{has realright tg the fruits of the ttting from the time they have been delivsed.
rhe brryer acqurres rJ"ir'Sl'iXlirtJ'iil,[.r uie rhins rro* tn.rffitio]or the sare.
.; t:,re, true (r,'.1rrue, rabe c. Felrc;ffi6 d. False, false
t:) a natLral obligation, the creditor has the right to enfurce the performance thereof itbeing based on positive law.
I'Uir:il,-r indebiti and negotiorum4estio are quasi-conl.racts that give rise to civil obligations. yz
i:. laise, false
c. True, Eue d. True, false
i ,4' t;-al sale of land made by its owner rs qq
&iggibb- rirlL' k'lt
*-[ o]-t
nr v'(c.r1
' 'iho;,.[..'
of land made by an aEent withoui'.,i-iir.i:i ,lr'.1 r,,.,ty frrn\the owner thereof is void. .'
o. i-alse, fulse b. FalseTrue
True, false
25 A
as a gerreral rule ntust be written to have ficrce and effect as a valid agreement
A brmal or solentrr confact is one that must be in writino to be valid.
true b. False, false ([l[ar., rr"
d. True, false
I 2ti A corrtract r:f partnership where immovables are contributed must be in public irstrument to be valid.
A iimited parhership must be SEC reqistered to be valid
trr-re b. True, false
i.. / ilre
of autonorny of contracts means
r-iause, tei'm and corrditbn.
c. False, false
that the contactirg parties as a
)rrue, true
rule may agree upon any stipulation,
partners. /
a. False, hlse
a. False, hlse
b. frue, true
1c. False, u-ue
d. True, false
d. True, false
as furming a corporation are liable as general
d. True, talse
d. True, False
t'ie,arivrty of contracts means
take effect not mly between the parties but also thelr heirs and assigns.
a, ralse, false ( tr.)True, tnrc
_ ,
c. False, true d. True, false
12U Antrchresis rnLtst be in writing and involves only rnrrrrovables
In pledge and Recto Law there is no deficierrcy liability.
a. False, ralse
true c. False, true
129.A contract enterect into by . ,V is@,
\L l0fr6Lt ,t
A contract where the-arnount involved exceeds P500.00 must be in writing to be valid.
a. True, true
b. lFalse,
False c, False, true
130.4 de facto corporatio)lione which is not registerd with the SEC. X
In corporation by estoppel, those *i-**r*resented themselves
131.If the obltgation is solidary, it means there is mutual guaranty arnong the debtors and therefiore the insolvency of one is
shouldered by the others.
Solidarity may exist alttmugh th_ey'eptors may not be Lround by the same term, condition and manner of performance.
a. False, false
tn-re c. True, false d. False, true
132.In dation in paymen! the creditYLcomes the owner of the property ceded as payment of the debt.
In payment by cession, the creditors do not beccrne the owners but are authorized
sell firc properties mspned to
a. False, false b. False, true d. True, false
133.In tender of payment
and consignation, tne(efusatTwit
e creditor to accept the payrnent of the
debtor will extingulsh the oblklation.
The third person who paid the obligation without the k the will of the debtor 6 still entitled to
reimbursement from the debtor to the extent of the iatter'g.tenefrt.
b True, true
134-Acorporatoncanbeastockholderbutnotanincorporator (0c[rr,[trrc, ? p,l-'l'") irct,[tr,.t, ,..j,,,
To be a de
corporation, it must be existing in law and in fact unlike a de facto one which exists in fact but not in
b. False, hlse c False, fue d. True, false
135.It is indispensable for quasi-delict to exist that there is no pe-existing contractual relation between the parties.
.:lfiq unpaid seller cannot recover the thing sold from an innocent purchaser for value.
b. False, false c. True, false d. False, true
c. Both are fabe.
d. First is true, second is fabe.
136.Wridr of the following is not an essential ehment of an obligetbn?
a. obligor
b. Effrcient cause iI. Creditor
l-i7.It rs an obligation which is based on.pgg$Ig-lgw gives a right to entorce iE performarrce
a. Natural obligation c. Moral obligation
Cvltobliqation d. Legalobligat'ron
' -l:i
;'; !,t''n of ihe ioilowii'lg is not a source of an cfuligation?
l-aur h. Contacts c. Delicts ,tdtparrry e.
; ;i;
clerived frorn law are presumed except those found in the Civil Cdie or n special lavls.
Oi'ii:natior'rs arising itom coniracts have the force of law between the contracting parties and should be complied with in
i'0th st,rtemen$ are true.
:rst rf,hl,;tl, se-:ond is true.
I "r^.
rs i
rrn-ipai kid of quasi-contract arising out of payment by mistake or:gndg..e*pgrformA-{Eg of an obligatbn;
iorutb indebih b. Negotiorum gestb
c. Other quasi<ontract d.
i il Wl ricJr of the following is not a civil liability arising hom delbt?
I ,. . - .
;.,--.Indemnrrau."'#;;t"qr$#ffi;rq* c. Reparation
,lvil li1,(r,11,1
lrl ir1 quasi-contract there is rlo cmsent of the parties thus preventing a meeting of minds between them.
Irr quasi-delict here is not intentbn on the part of a person doing a wrongful act or omission causing damage to
.:tl.lthef .
I tint is false statenrent, second is true. (c
are true.
L, First is true, second is false. al] Both are false.
ii;,,h{F rs the kirid of dihqelrce that tr obligor must obserye in the performance of his obligation to give something:
D'kgence of a gmd father of a family.
F.xtraordinary diligence of a good father of a farnily.
Diligence of a fatler of a qocd family
Diligeirce oi'a gmd fiather of a family even if the law or the stipuhtbn requires another standard of care.
I :t.-ihe G'Frdi$t a(quires a real right against the de.btor from the tirne the thing should have been delivered.
f;.'lits cf the thing shall pertain to the crcditor trom the time they $pqd:@yg
him, ttnt is, he has
persrnal riElrt to demand cNelivery of tlte fruits existing after the obli7atbri tro deliver the pincipal thing arises.
a. Both statemen6 are lal*-,
is fialse, scmd is true.
b. Eoth are true. 'd. First b fue, semnd is fabe.
145.In the obligetlon to deliver a thing, the debtor lns to deliver also the accessories and accessions if they have been
In obltgabon to do, sperific perfurmarrce of the debbrs obl(Tation is not available as a right of the creditor to denrand
rffom the obligor.
146.Which if the tullowing is demand necessary to nuke the debtor in chlay in tfre performance of his obl(ption?
a. When the Ume of performarrce is of the essence; c. When tlrc law so provkles;
Whm the time of perfunnarrce ha been stipulated; d. When demand would be useless.
l47)t/lability fioe damages in ttre performance of an obligation arises Irorn the following, o(cept:
c. Dehy
d. Fraud
lzl8.Liability fro dannges arising ftom fraud is demandable and there can be a waiver of an action fur past fraud.
There can be waivr of an action for future neglQerrce but not ftaud.
/ a.
First staternent 6 fabe, second is
P/ first is tnrc, second is false.
a. Negligerce
Aatr or ornissirrs punistred by law.
c. Both are fabe.
d. Both arc true.
c. First staternent is Eue, second is false.
d. Second is Eue, first is false.
a. Both statements are false.
fi, Bodr are true.
149.A obliged hirnself m delirrer the cars of powdered milk of B from Pangasinan to Marrila. Whih his brck was traveling on
the North expressway, it was hi-lacked by a band of robbers who also took ttle cans of milk belonging to B. Is A iiable
for the loss of the goods?
a, No, because they were generic things and as they cannot be lost.
b. Yes, bcause he was in possessaon of the same at the time of the loss and therefore presumed at fault.
Yes, because thse was no stipuhtbn exempting him from loss in case of fortuitous event.
No, because the loss was due to futtuitous evert.
IreSA: lne Keuew ucnool or Acoountancy Page 13 of 19
150.In whkh of the l'ollowing is tfrc debtor still liable despite ttrc ficrtuitons event causing the loss of the thing?
a. The thing lost is a specifr thing.
b. The performarrce of the obligaticn has becorne impossible.
The nature of the obligation does rrct require tte msumption of risk.
wnen tfre hw or the obligatinn expressly so provides.
151 D borrowed from C a sum of money with a stipulated rate of interest to be pai<J in three equl monthly installments
frorn January to March. D paid an amount for which the latter issued a receipt staung that the paymert is for the
rnonth of February. In this case:
a. llte installment for the rnonth of March is also consilered pail.
ir-, 1}e installment for the month of January is to have been paid.
\ ,
iristattnent for tlrc nrcnth of January is pakt.
! tt
I ire irstaiirnent for he month of January is rrct presu
the preceoing case, suppose the rcceipt does not mention the payment of the interest it is:
a. Concl,-sively pnesurned the interest has been abo paid.
ilct prsumed paid unless proven otherwise.
Pruna hcie presumed to have been paid. I't
,..1,'' I
'' : ' ','i-
Pre:,;riirled dbputably that only the principal has been paid. 'l
1 ',: I trr t)l rrr the fuliowing are the rights of the credibr against the rhbtor who fails to pay his debt except:
a Attachnrent of the deDtor's propaties or gamishment thereof;
ir. tri-rb;6gd1s. to Urc rights of tte debtor agEinst third persons;
.lrxcission of contrrts enter-ed into by the debtor to deftaud him;
Send the debtor to
for non-paynut of his ffit.
154. Riqnts acquired in viftue of obligations are;!p4.91[qgrble only if so sUpulated by the partbs.
Ihe law of the stipulation of the parties to an obligation may provide tfnt the rights acquired by virhre thereof are not
a First statement is ialse, second is bue
f. Secr-rnd is false, first is true
c. BoUr are false.
d. Bom are true.
t55. D borrowrd a sum of rnney from C prornising to pay after tfie anival of the vessel "Baliktaran" from Cebu. The vessel
faihd tc arrive due to some event and witfrout ttre lault of D. D's oblpatbn b pay is subject to a:
a. Suspensive condition and therefore mt dernandable since tfte vessel did not arrive.
L' iiot 3 condtion nor a period butrather ispute ebllgatbmiaCthe?efot is dema.'rdable at once.
.. Resolutory conditron and therefrcre extingushed upon the failure of the vessel to arrive.
(d. Perirxl whkh the @(rt may fu.
156 Iinpossible, unlawful, immoral conditions are not valid and mt dernardable except the oblipuots whkh depend tpon
r ,ti{icr, ,,
. C\D, Cb\,,._
.., vrlt)
Potestattve condition to be void nrust both be suspensivepftlrdependent on the debtors will.
a. Both statemenb ae 0ue. (q-zfirrt as False, second is true.
b. Eoth are false.
First b tue, second is fabe.
157. D bound ltimself to deliver either specific object 1 or object 2 to C. If one of ffre objects is lost due to fortuitous event
and without the fault of D, tle effect is:
D may still choose which he shall deliver, only the value of the thing lct if he chooses tlrc same.
. b. D canmt ctt@se because arnorE the prestatbns whereby he is atternative| bourd, only one is practicable.
C rnay choose which of the obpcts he wants delivered.
d. Obligatbn of D has been extinguished.
158. In facultaUve obl(7ation, only one prestation is due but the creditor may be given $rc right of choice as b 6rre
In afternative obliTation the right of choice b always with ttre debtor.
a. FiEt3Etement is false, second is true.
G. Both are Uue
b. First is true, second is false
eofr are false.
159' A, B and C borrowed P3M frorn D, E and F eviderrced by a prcmissory note worded as follows, to wit: "I pronise b pay
D, E and F P3M, (Sgd) A, I and C
much can D collect ftom A?
c. Pl,5M
160. In tfrc peceding case, suppose only D b demanding payment, can A still pay any one of the creditors?
a. No, because the law provides that payment shall be made to the creditor &manding paynrent.
b. No, but in case payment is made b a creditor not demanding payment,
only his share of ttre credit shall be
Yes, because payment can be made to any of the solidary credibrs.
Yes, because payment proportionately can be made to any of the joint
creditors of his sharc.
161. A, B and C bound thensetvs to deliver to X a specifrc car worth P3M. Due to the fault of A, tlre car was lct. In [tis
a. P3M
b. P.5M
a. X can claim damages ftorn any one of the three for his propoftionate part of lhbihty because the obligation is
b. X clairn only fiom A the whole amount of damages other than the value of the car.
c. Since it is solidary liabilities e from any of the three.
Onty A is liabts tur darnages eir respective shares in the oblilation,
162.Yi obligation with penal clause, by the oeditor is essential to enforce the penalty.
As a rule, the creditor may demand the payment of ttrc penalty, damages and interest in case of non-performance of
h.) Both staternents are false.
Dt:' Fi!.st
true, second is false.
c. Both are true.
d. Second is Eue, first is false.
153 D owes; C P1f'4. X, without the knowledge or against tfie will of D paid C P2M. Can X get reimburcernent frorn D?
P to pwent unjust enridrment on the part of D at the epense of X,
\h I
P fitoFD.
Y lt rtt was not proper
being without the knowle@e or against Ute willof D.
F1M plus interest from the tirne of payment until reimbursement.
t;.r. In t,re p-eceding c.lse:
e is quasi-ccntract with the obligation to reimburse the third person insofar as the payment has been benefrcbl to
subrogation and therebre in case the debtor ftils to reimburse the third person, the latter may
' r .. tgage, guaranty or
zrr faise staternents. c. Flrst ls false, second ls true.
lrth are kue.
ffst b Uue, se@nd is fabe.
I55. I'ayment made to a ftird person is valid to extinguish theb5ligation of the debtor to the creditor in the following cases,
payrnent b the creditor, ttre third person acqiis the aedito/s right
r the creditor ratifies the payment to the third person;
tlrrough the creditort conduct the debtor was led to belbve that the third person had authority to receive
When ttx: third person is subrogated to the righbs of the creditor.
)'o{; tcllowing are speciat forms of payment, except:
Dation in payment
Tender of payment and cons(Jnation
167 In applicaUon of payment, the creditor as a rub shall decirh on what debt shall the payment be applied.
If the period is ficr the benefit of the debtor he can apply peqayrnent on a debt although not yet due.
a. Eoth statements are hlse. t.c.
is false, secmd is true.
b. Both are true. Vfiot is Eue, second is false.
lffi/n dat'ton in payment,
the cJeditor becomes owner of the thing alienated as payment
while in payment by cecsbn, the
creditors do not becone owners of the properties
of the debtor.
tender of payment and corsignation, the terder of payment by itself shall not extinguish the obl!7ation.
fre creditor receives a check as payment
and it has been impaired through his fault; the debtor/drawer shall be
to the extent of the loss.
a. First staternent is true, second is false. c. Both are fabe
b. First is fatse, srond is true.
169. Three of the following are essential elernents of a conbact, o(cept:
a. Cause of tfe obligation which is establisherl.
b. Consent of the aontracting parties.
Motiveof theprties.
Ya Object certain which is the subject m*ter of the conuact.
170. Novation of a contract takes place in three of the following, except:
the other.
That both debts be due.
That thry ouy be unliqutoatJand dernandable;
Lr&UtD [IkT /
That they both mnsBtfr'Effi-of money or if consumable also of the same kind and quality
as that stated.
172. S offered hh car to B fur P1M and giving the laEer one week to decide. B in turn gave S
In this casg tfrere
Contract of
.00 m earnest money.
(b. iConbactof ptbn morrcy.
t: Contract to
d. conuact b sell of the car at s's option.
at the same the prirrcipal debtor of
/.% .^'A
173. A advertised in the newspaper his parcel of land wanting to sell the same tur PlM. B personally went to the turrner
with cash in hard to buy the subject parcel of land. In this case:
A cannot anymore relect B as buyer of his land;
; ;; ;iiti;;ilt I as an offerer in the purchase or his tard; '
t r'"
ci [
: ;
Y A can reject the offer of I unless he propelly consigrs with the court his payhbnt fur the land;
d. A cannot evade his obligation as seller to B.
174. The following cannot give consent to a contract, except:
a. Minors, except sale of rrecessaries in life;
b. Insane persons
c. Demented
who represent themselvs as of legal age to one in good faith.
i i5.
colrtract entered into by the persons who cannot give cons,ent is:
.- Voicl ab initio because actually there is no consent.
-: inerfiorceable only because the contract may be ratified.
.. . ri ;:*:lssible i:ecause of the darnage caused to tte person incapacitated.
voiaaole as there is consent altfnugh vitiated or defective.
t, i.l1 i:?i'ecu'{e Lr)ntrect wtiere damage or Esion is essential is:
i lliolvillg are still valid contracts except;
Y linenfcrceable
, Rescissibh
I if
contract because it
prohibited by law is:
/.: )
D Voidabie
c. Voidable
d. Rescissible
c. Unenforceable
d. Voirj
c. Rescissibh
d. Unenfuireable
c Void
d. Rescissible
I /9 A def-ective contJaci because it is entered into rn the name of another withotjt or in excess of authority, or it b verbal
r d0. toltowing even if rrot in puhlic instrurnent
are yalid,
tindiogr^andenforceable, orcepL
a. Negotiableinstnrments
b. Sale of land, either by the owner or agent witi writteri authority
Agenol, pledge, rnortgage
( tl.
contract whgein immovables are contributed
fgf)in refonnation of instruments, it is necessary that there is rneeting of minG of the parties to the confac! otherwbe,
annulment of conlract shall be the remedy if fraud, accklent mistake or inequitable conduct prevented the nreeting of
In the interpretation of contracB, doubts on the incr,lental circunstance of onerous contracts shall be resolved in favor
reciprocity of inferest and if gratuitfls, least b-ansrnissbn of rights and interest.
Bo,h statemenB are true. c. First is fue, second is false.
b. Both are false. d. First is false, second is tue.
182. A sold to be his dog witi the agreefiient that delivery shall be after ore week ftom sale and the payment of the prke
two weeks from delive hall belong to:
if produced befure Bre
If the puppy shall exist still to the seller;
c. The ftuib ttpt shall exist after delivery witl only be the ones to pertain to the buyer.
d. The fruits after tire sale but before delivery shall pertain to the buyer if so stipuhted by the parties to the sale.
183. A conbact of sale of vain hope or expectancy is voidable at ttre option of the hryer and he mtion ficr annulment
brought within the prescriptive perkrd provirled by law.
The sale of a mere hope or expectancy is deemecl subject to the conditbn that the tlring will come into existence.
a. Both staternents are false. c. First is true, second is false.
b. Both are true.
184. A sold 8's car in his (A's) name to C without any authori
a. Rescissible b. Voidabb c. Void
185. A sold B's car in the nanre of B without authority to C. The sale is:
a. Rescissible b. Voidable zd)Unenlicrceable d. Voici
186. A sold 8's car with authority fo sell but sold it in his (A's) name The conbact rs:
a. Rescbsible b. Voiclable c. Unenforceable d. Void
i8B. A, .rs agent oi P with oral authq!:lty, sold P's land in a public insfurnent. The sale is:
a. Rescrssible b. Voidable c. Unenturceable d. , Void
d. Voil
:tS9 With written authority frorn has principal, the agent sold verbally the land of the principal.
The sale is:
a. Rescissible b. Voidable c.
1',ia V/i'(nout aut?rcrity from 8, A sold the folAet's lard in B's nanre. The sale b:
:i. R.escissible b. Voidabh
t.l Unenforceable d. Void
authority fron 8, A sold the ftr1ner's house in 8's name. The sale is:
Rescissible b. Voidable
d. Void
Ill.? A ,*ritir cral autlrority from P, sold the latters house in writing. The sale is:
e Rescissible b. Voidable c. ffiffi-ceable d. Void
Ci.'l ncl ratify the contract. The contract is:
b. Voidable
Unenforceable / d. )void vtrLrrrvrL..urL
i fr.'9l,,,,rt,ir
l9*. S,-'rld to B ttrs ianC on January 10, 2001. On ianuary 15, an absolutg.9s9.(g!-=Le was executed dnd rntarized. On
.)ar ruary 2(1, tne sale was registered with the Registry of Deeds. On January 25l I took actual possession of the land by
buikling a funce thereon. When did I rquire ownership of the land?
(r. On January 10
G.' tOn
Januay 15
fgiy'sofa to I his car on January 10, 2001 On January 15, arr absolute deed of sale was executed and notarized. On
J(:nuary 20, the sale was registered with the LTO. On January 25, IEdfacabl}ssession of the car. When did B
acquire title to the car?
c. On January 20
d. On January 25
i9gr: ;t:tJ to B his car with tlre agreement b cieliver the same one weck after the sale on January 10, 2001. In this case:
a. S rnay danaM within reasonable time ftom the sale the payment of the price frorn B.
b S can dernand payment only after he has delivered the car to B.
r B may denrand delivery of the car even befiore the expirat'nn of the one week period agreed upon once he pays the
Payment and derirrery shall take place only after one week frorn sale.
197. S soid to B his car with the agreanent that be will pay the prke one week after the sale on January 10, 2001. In this
a. B may demand witnin redsonable trne ftryn the sab the delirlery of the car.
b. I may dernand delivery only after trc has paid the price.
c. S may seek payment of tlrc price once he deliverc the car.
d. PaymenB arrl delivery shall take place only after one vueek from sale.
198. jrqoH hs car to 8. No aqreemet was ma& on the time and place of delivery and payment. Henqe:
The time and place of delivery shall be at the urne and place of payrnent of the price.
SftBft { \.uorf
tr: The time and place of delivery ard paynent not having been agreed upon, the sab shall bb void. '
c. The seller may dernand payment first before delivry of the thing sold.
d. The buyer may dernand delivery first before payment of the prke.
199. The seller must be the owner of tlte pmperty he sells but hs ownership neerl not ex6t on perfiection but upon delivery
of the thlng.
A contract of sale may be absolute; conditional, either suspensive or resolutory; or subject to a contingency; or
undivided interest in property, either present or tuture except future inheritance.
LB7. A sold his land to B vt:rtrally. Tte sale i9:-..
a. Rescissible b. Voidable
cl. Void
(: r'"
c. On January 20
d. On January 25
January 10
January 15
wttrr{ iirf ft{rtn1
,. .
Both are false statemenB.
b. r Bofrr are Eue statemenE.
200.'A sold his car for the prlce of F2M to B who shall
There is:
a. Paftly sale and partly barter.
b. Barter
c. First is fue, second is false
d. First is false, second 6 true.
pay P.5M and deliver to S his land a consideration ficr the sale.
c. Innorninate contract
c. Innominate contract
d. Paftly sale and paftly barter
201. S delivers to B his car valued at P2M in consideration or a\tradsfrrring to S his land worth
and the anount of
There is:
a. Bafter
202. B ordered from S a pair of shoes of the kind and styh of which S has gone out of stock. There b:
a, Contract for a piece of work. c. Contract of agerry.
b. Contract of hase of service.
Conbact of sale.
203. S scld to B his land vaiuerJ at P1M only for the price of P,7M, thus resulting to inadequate
The sale is:
a. Rescissible
c. Unenforceable=-:-::=:--_=-_-
tr. \toidable
204. S r;ffered his lanrl to B rarith the understanding that theHer shall lx the price. B, as agreed upon fixed the
price at
P.1M, althouqh the lancl's market value was P1.5M. It is clear, therefore, that S is to benefit fiom the transmtion. Was
ed sale as there was no consent on the
perfected sale, fixed by buyer and accepted by the seller.
valid sale since the buyer uras authorize.d to fix the pice.
l. Void,rille sale at the optbn of the buyer due to mistake in the fixing of the price.
2Ci Villrir-h of the foilowing is not constructive delivery in sale?r-
a Traditio longa manu
Thing is phced in the control and pcsession of buyer
b, Tra,liiio constitum possessorium d. Traditio symbolica
.'0c in
or return", the buyer becomes owner of l.he thing upon delivery while if
approval, fial or satisfaction",
af irr acrorcval, express or implied,
is separation of property between them in the same way that
c. First is false, second is true.
d. Fin;t is true, second b false.
; I s:'id to B nis dog without knowledge that the animal was suffering from a disease at the time of the sale. Is the
celhr liabE tur breach of warranty against redhibitory defect of animals?
a. No, hrause the seller was in g6d faith when he sold the animals.
if he were arriare of the hidden lault or defect.
No, be;au- anirnals unlike things easily can contact sonre illness.
Y and good faitfr rs not a deEnse to avo,d liability.
1, b:t'ween husband and wife is void, unless there
partnership between them is also void
tsotlt st3tej'nents are tnle.
Both are false.
ii .r ttling without krrcwledge that the thirg suffered from a hidden defect. The parties agreed on the waiver
iire v,arr?nt) by tlrc lruyer seller still liable for breach of warranty?
.j llrl-sscauseoflfiaval
rt ne must returil tne pflce to the tluyer uvithout damages
the waiver refurs onty to liability for danuges.
if lhe seller was in bad Faifi at the tirne the waiver was made.
,)i ',
:oici to R a thing rvith waiver of warranty against anictron Evktion took place subsequendy. Ls S still liable fur
.ivarranty agailrst evktlon?
lro, if it
waiver intencnnada.
lo, if it were waiver consciente.
c. Yes, even if it was waiver intencionada.
d. No, provided the seller was in good faith in entering into the contract of waiver of wananty against eviction,
210. B bought from S a second hand motor vehicle whrch upon inspection by B had sonre mechanical troubles. After the
sale, the car broke down due to engine houble requiring an overhaul of the engine. Is S liable for breach of warranty
hidden defect?
., ar/ No, because the defect was not hklden bui apparent upon irspection by I it being a second hand car.
Y. Yes, because there was no waiver of wananty agatnst hidden defect.
c. Yes, because the seller was in bad faith.
d. No, because it was the Fault of the brryer in buying a used car.
211. In which of the tollowing is sahlolpresumed eqgita!!el9!gg9e,
of the sah usulfi-adeqrnte.
The verrdor remains in possession of the thing soid,
c. The verdor allows the extersion of tirne to repurchase the hing sold.
d. The
purchaser retains for himself a part of the purchase pnce.
212. S sold to B a car on installment wherein the latter mortgaged the same car as security for the price. Failing b pay the
insballments, the mortgage on the car was foreclosed. ts B still liable for arry deficiency if the seller faib to recover in the
foreclosure sale?
a. Yes, because it is only in case of pledge is the debtor not liable for any deFrciency.
b. Yes, if so stipulated upon by the parties.
6on b tfie ccntrary.
2l ty for a loan. Failing in the payment cf tlre loan, C foreclosed the chattel nmrtgage
and sold ttp car at
auction. In case of deficbncy, is D liable fior it?
a.. Yes, in the absence of contrary stiprlation.
b. No, because it would be unjust enrkhment on the part of creditor.
c. Yes, if so agreed upon by the parties.
d. No, unless stipulated.
214. Based on the preceding case, suppose it was a pledge. woukl tlrc debtor/pledqor be liable
c. Yes, if so agreed upon.
firr the deficiency?
/.-:: " a\
a. No, notwithstanding stipulation to the contrary
RgSA: The Review School of Accountancy Page 18 of 19
b No, unless otherwise stipulated. d. Yes, even in the abeence of stipulation.
215. D mortgaged his parcel of land to C as smtrity for a loarr Fearilq foreclosure of the mongage due to his inability to
pay the loan, D sold the land to X witlput the consent of C. Is the sale valid?
Nc, unless there was prior con-nt of the rnortgage,
Yes, stipulation prohibiting the sale without the consent of the lnortgagee shall be roid.
c. Yes, provided the modgagee was rctified befiore the sab.
d. No, if there was stipulation requiring prior consent.
215. A, B, C are co-owners of a parcel of land. A sold his share to B. Can C redeem the said share from B?
No, unless he was noUfied of ffte sale
to its perfection.
No, legal redemption applies only if the interest was alienated by oneous Ufle to a third person.
Ym, because the law ftowns upon co-ownership.
,J Y'es,
he pays b the pice, experses of the sale and necessary and r.seful expenses on the thing sold.
i'l i ,r and B are co-owneru of a parcel land. A donated his share to c. Can B redeern the said share ftom C?
Yes, br:cause the law looks with dbfavor at co-ownership.
i t'- i'tc,
b(rause legal rede'nption applies only in case of onerous alienation.
he enficrced his right through court action.
i'es, but rn polrcrtion to his interest in the land as co-owner.
;*q. C a surn of money with M as mortgdqor of hb land to secure the loan. Is the mortgEge valkl sren if tfrc
.,yt_!aqor +, not the rletrtor?
Y-s, provded the mortgagor or pl@or in case of pleclge is the absolute owner of the property rnortgaged tr
b Yes, pr.rlided it is in writing and registered.
c. I'io, the rrrcrtgagoripledgor must be the debtor himself.
d. lto. unless the mortgagor is a co-debtor.
.l l9 l, I tirree of tIrc fullowing cmes, the agency is not revocablq except:
e. It is a means of fulfilling an obligation already contracted.
i, liildteral conu'act depends upon it.
'. , it is coupled with interest common to Ete agent and principal.
Paf"rrer is appointed manager in the artkles of partnership and renroval is without
just cause.
I , r,l ii two or rpre pnncioal appoint a shgle agent br a comfinn transaction, the liability of the ficrmer shall be sol*Jary.
If hvo or rnore agents appointed by a single principal are
iiabh unless solidarity ls stiplated.
a. tioLh statemenB are false. c. First is false, second is true.
}. Both are true. d. Second is fialse, ftrst is bue.
,:2i P auctrurtzed A to sell his products with 10o/o cornmbsion and 5olo guarantee
cornmissbn. A sold them b b who failed
ttrqaV despite the diligent efforLs of a in collecting. Is A still liable for the purchase prke?
Yes, because of the guarantee cornmission given to hm.
b. No, because he was not at fuult in the collection.
c. No, if he returns the guarantee commissirn.
d. Yes, and he is not entitled arryrrore to the commissbns.
222.|n three of the btbwing cases, the agent can appoint a substitute, except:
a. The prirrcipal autlrorized him to appoint a substitute.
b. The principal did not authorize him to appoint a subsbtute.
c_. There is no stipuhtion as to t|te appointment of a substitute.
torbkls the appointrnent of a suhtitute.
223. P appointed A and B as his agents for a cornmon transaction and they agreed that the latter shall be solidarily llable to
the former for damages in case of vblations of their oblklations as srch. When is the agent at fault the only one liable
for damages ryen if solidarity has been stipulated?
a. If the other agent is not at Fault.
b. Both of thern shall be liable always sirrce solidari$ was agreed upon.
If the one at fault shall answer fur all the dannges,
' d.
If the one at f;ault acted in excess of authority.
224. A\ B, and C entered into an oral contract of partrrcrship each conbibutirq P1M each to the common fund
personal properties
of the sanre amount and fiailed to reqister the partnership
with the SEC, Is the partnership valid?
a. No, because every conkact of partnership having a capital of three thousand pesos or more in rnoney or property
. must be in
instrument and registered with the SEC.
by' Yes., because
instrumot is necessary only in case of conbibutions of immorrables.
t. Yes, because a partrrership aontract can always be oral.
d. No, because regbtration with the SEC is essential tor a partnership to be valid and acquire
juriclkal personality.
RsSA: The Review School of Accountancy Page 19 of 19
225. P authorized A, a minor, to sell his car for P1M in cash. A sold the said car to X on installments at a lesser price of
P,9M. P is now repuliating the contract with X on the ground mat he is rnt bound since X contmcted with a minor wtto
h,s authority. Decide.
a.1 P is liable urder the contract because it is enough that the principal is capacitated since he is the one entering inb
the contract.
b. P is not liable for the sale on installments since it is unenforceable because his agent acted beyond his powers.
c. P is not liable hecause the agent is a minor with whom X contracted.
d. P is liable provided the sab is in cash fur P1M.
it.5. P.trtners A, B, and C contributed: A-PIM; B-P2M; and C-service. After et'raustirp the partnership assets, the creditors
have a t.lairn for P.3M. For how much arc the partners liable to the credibrs for the paftnership liability?
r i)rrly A and B are liatrle equally to the creditors being capitalists.
'Jnly A crnd B are liable at '/3 aml'/3, respectively.
:-.) ltl ot A, B, and C are lhble pro rata b the oedibrs.
is not liabie heing an industrial partner who is exenpt frorn losses.
. ' ir drri B arc co-owners of a parcel of lancl from which they derive profits in equal sharing being co-heirs in inhedtance.
trem a
['hr-it :s a p]finership because of the equal sharing of profiE.
.'ihertr is no partnaship because co-ownership by iEelf does not establish a partnemhip &spite the sharing of
, Itrer-t: is nc partrrership sirrce in parhership divlsbn of profits is not alwa),s necess.rry anong partners.
i:; partnershlp they being co-o$/ners and co-possessors.
.:,':l A .r,r,j C are
in Ace partnership. While a was performing his dutk= as a partrer in the conduct of tfie business,
r '':
r.:e4ligeni!y caused damage b X, a third person. Who shall be liable to X and in what capacity?
: Only the partnership shall be liable it being a juridical person separate ard distinct fiom the partners.
Only A shall be liable for he is the only one at fault.
Both A and B shall be liable soliclarily b X.
A, B, and tfre Partrrership are atl liabh solklanly b X.
,). F- .
of the tullowinq is not a prohibition on a limited partner?
a Surname of a lirnitrlC partner may not appear in the partnership name.
:' i
nray not take psrt in-ttreeonFeil cf ttr+trusi6ess--
cl t-imits1
nny rrct contribute service
Limrted partner may mt consthrte hb assignee as s.ffiihjted limited parfEr,
is beryond U-te scope of the negotiable instrument law, becanse
a-.--)lt rs in favor of a specified person or mt b order
-v .r' cf Z neclrririlrs
l rs cil'r order to pay out of a pafticular fund
It rs without an urrconditional pombe or order to pay a sum certain in money
It is not payable on dernand or at a fxed or @terminable future time
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