CPAR CPA Review School of the Philippines FIRST PRE-BOARD EXAMINATION Saturday, July 28, 2018 Regulatory Framework for Business Transactions 10:30AM to 12:30PM. Instructions:Choose the BEST answer for cach of the following items. Mark only one answer for each item on “a the Special Answer Sheet provided. Strictly no erasure allowed A andl B are solidarily obliged to give C a brand new 2018 Toyota Camry valued at Php 2M on July 1, 2018. On dué ate, A has Php 1M but B only has Php 200,000, hence they failed to deliver. As a result ‘a. Both A and B are liable for damages b. Only B is liable for damages <> C gam require A to pay damages but A can recover from B the amount A paid to C 4, Neither A nor B is liable te pay damages A and B are obliged to give C 100 cavans of NFA tice on July 1, 2018. On due date, A delivered 50 cavans of NFA rice but B failed to deliver. As a result a Both A and B are liable for damages b. Only Bis liable for damages & Can require A to pay damages but A can recover from B the amount A. paid 4. Neither A nor B is liable for damages Cha ty 25; 2017... obliged himself to give to B his agricultural land if B will pass the October 2017 CPA Board Examination. On July 26, 2017, Biorally sold the agricultural land to C cade agreed that C will pay. when B effects the delivery. On October 2, 2017, one day before the fr day of the CPA Boar! Examination, A put poison on B's food requiring B's hospitalization resulting to B's failure to take the October 2017 CPA. Board Examination, As a result, which ofthe following is correct? a. The sale to C is void because B did not fulfill the condition B» The sale to C is enforceable because A. voluntarily prevenied B from fulfilling the condition & Bis entitled to the agricultural larid henee, the sale to C is valid Feil a. Ccan(demand the delivery of the agricultural land because the sale made by B ig valid ‘and C are solidary debtors of W and Y, joint creditors for Php 12,000 where the share of the Gehors in the obligation is 2:3:5 while the share ofthe creditors is 1:3. IFA is insolvent, Which of the following is correct? & W can collect from B Php 3,200 ( c. W or ¥ can collect from B and C Php 12,000 >: ¥can collect from © Php 6,400 ~d. ¥ can collect ftom either I or C Php 8,000 Using the preceding number, but the creditors are solidery and B is a minor, which of the following is correct? a. W can collect from C Php 8,400 | b»YY can collect from € Php 8,000 © Wor ¥ can collect from € Php 12,000 The insolvency of A will be shouldered by B and C in proportion to their respective obligations A contract is presumed to have been entered into in the place where the a Offer wasmade \_b Acceptance was made ¢, Performance wes made ¢..Payment was made Before acceptance is conveyed, an offer becomes ineffective upon the death, civil imerdiction, insanity or insolvency & Ofthe offeror b. OF the offereel C \OF either party d. OF both the offeror and offeree8. Which of the following is ot correct? a. The obligation to give includes that of delivering all its accessions and accessories even though they may not have heen mentioned A >, tra person obliged to do something fails todo it, the same shall be executed a his cost c. When the obligation consists in not doing, and the obligor does whit has been forbidden him, it shall be undone at his expense 4. In reciprocal obligations, fiom the monient one of the parties fulfills his sion delay by the other begins 9, Ithe contract stated the diligence which isto be observed in the performance of the obligation Statement 1 ~ that which is expected of a good father of a family shall be required Statement 2 — that which is required by law shall be observed Both statements are true ©. Statement | is tue | , Both statements are false i, Statement 2 js true ‘10. When a condition has bea imposed with the intention of suspending the efficacy of an obligation to ive, which of the following shall be observed during the pendency of the condition? 1, & I the thing is lost, the obligation shall be extinguished b. When the thing deteriorates, the impaizmnent is to be bome by the creditor se. If the thing perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered, the debtor shall be obliged to pay damages | 4, If the thing is iraproved by nature, or by time, the improvement shall inure to] the benefit of the creditor \ 11. A, B and © are solidary debtors sharing at 2:3:5 respectively, of creditors W and |Y sharing at 1:2, respectively. The obligation amounts to Php 30,000 due on July 30, 2015, If on July 30, 2015 A paid Php 30,000 to W, which of the following is correct? * | i a. A can recover from B and C the share which corresponds to cach, with interest | solvency, reimburse his share, such chare shall be borne by A and C b, IfB cannot, because of his in equal share ©. A can recover from B and C stipulated 4.) A can recover from B and € the share which cosresponds to eack, without interest | i@ share which corzesponds to each, with interest only if it is 12. As regards anticluesis, which of the following is not conrect?” a. The amount of the principal and of the intewst shall be seccified in wilting, otherwise the contrast of antichesis shall be void P, _ b. Thedebtor, uniess there is stipulation to the contrary is obliged to pay the taxes and charges upon the esiste ¢.)) The debtor cannot resoyutine what he owes the creditor d. The creditor is bound to bear the expenses newes immovable aijayriesn of the fuesovable withow fr Having totaly, paid ‘y for the preservation land repair of the 13. Which of the following is.uot coreece? B 4. Any stipulation exempting the yendér from the obligetion to answer for eviation shall be void jb Every stipaiation exempt from tie obligation to render an o¢count shall be void fi & Ihe thing pledge: he pledges to the pleduor or owner, the pledge is extinguished and any stipulaion to the eontary is void A stipulation forbidding the owner from alienating the immovable mortgaged shall be void returned by 14, Siatement A ~ Merger aA ” guarantors | ‘ ‘Statemeut 8 — Confusion which takes pisee in the person of the guarantors does not extinguish the obligation | a, Only Statement A is tue ) Both statements are ue b. Only Statement B is true . Both statements are false wihich takes place in the gerson of the principal debtor or ereditor benefits the15. On January 10, 2018, A orally sold for Php 8M her house and lot to B, It was agreed that delivery of the house and lot and the payment therefore would be made on April 10, 2018, Unfortunately, C, a stranger negligently set the house on fire on March 10, 2018 and the house was completely destroyed. As a result a. Bis required to pay the Php 8M minus the fair market value of the house 6.) A must still deliver the lot but is excused from delivering the house while B must still pay the Php 8M A rmust still deliver the lot and the salvage value of the house while B must still pay the Php 8M d. A need not deliver the lot while B need not pay the Php 8M 16. On February 12, 2018, A sold his only dog to B for P20,000. The parties agreed that B will pay one day after the results of the May 2018 CPA Licensure Examination arc released while A will deliver the dog on the day B pays. If the results were released on May 25, 2018 but the dog gave birth to a puppy on May 24, 2018, which of the following statements is correct? a.” Ais entitled to the puppy because the puppy wss born before the obligation to deliver arises b. Ais entitled to the puppy because of the principle that accessory follows the principal ©. Bis entitled to the puppy because the contract was perfected on February 12,2018 | 4. Bis entitled to the puppy because the puppy cannot be separated from the mother dog yet VER pointed a gun and threatened to kill B if B will not sign a promissory note which reads “I promise to pay ~~ A, P100,000". Out of fear, B signed the note. {t tuned out that two days earlier, A's obligation to B amounting to P100,000 became due and B demanded payment. Now, A alleges compensation. Is A correct? a.) Yes, because the promissory note is valid . No, because the promissory note was signed only because there was intimidation c. Yes, provided B will agree 4. No, because A’s obligation does not exist. _JEA has two creditors, B and C. the obligation to B is P10,000 and to C is P12,000. Later, with the consent of Avind B, W pays B P10,000. Now W and C are the creditors of A. Suppose A has only P12,000, which is correct? a. C should be preferred c_C and W should be paid proportionately bt. W should be preferred 4. A may choose whom to pay 19. Inthe following cases, the contract of sale with a right of repurchase shall be deemed an equitable mortgage. except-when = » & The vendor remains in possession of the object (Cb. The vences retains a portion of the price c.. The price is inadequate 4.) The parties renew the instrument after the expiration of the period to repurchase 20. A owes B P100,000 secured by a mortgage. C, girlfriend of A, and with no interest at all in the obligation, paid B the P100,000 without the knowledge of A. Which of the following course of action is allowed? C can recover P100,000 from A C can foreclose the morgage Cis subrogated to the rights of B Cis a person who is interested in the fulfillment of the obligation 2A sold his car to_B “on sale or retam within 10 days”, On the 7" day after delivery, the car was forcibly taken by the carnappers. In this case I p> -& The contract of sale is terminated ¢. A bears the loss b.) B must still pay the purchase price. B can refuse to pay unless A delivers another car 22. Which of the following is not correct? a. A movable or immovable property maybe the object of commodatum b. The bailor in commodatum need not be the owner of the thing loaned ‘/ _¢._Astipulation that the bailee may make use of the fruits of the thing loaned is valid. 4. The bailor is obliged to pay for the ordinary expenses for the use and preservation of the thing loaned