MULTIPLE CHOICES.

1.When shares of stock are issued not in exchange for its equivalent value either in cash, property, shares of stocks, stock dividend or services is called -

a)Certificate of Stock

b)Watered Stock

c)Shares of Stock

d)Delinquent Stock

2.A corporation composed only of a single stockholder and director is properly called as:

a)Ordinary corporation

b)Close corporation

c)Corporation Sole

d)One Person Corporation.

3.Which of the following corporations is not required to adopt and file its bylaws?

a)Close corporation

b)Religious society

c)Educational institution

d)One Person Corporation or OPC

4.Which of the following can be registered as OPC ?

a)Banks

b)Quasi-banks

c)Pre-need

d)Travel Agency company

5.A One Person Corporation's corporate name must have in its corporate name:

a)Incorporated

b)Corporation

c)Corp.

d)OPC

6.The following statements relating to OPC are correct except:

a)The single stockholder shall be the sole director and president of the One Person Corporation.

b)The single stockholder may not be appointed as the corporate secretary.

c)A self-appointed treasurer of OPC shall give a bond to the Commission in such sum as may be required.

d)An OPC has no personality separate and distinct from the single stockholder.

7.Statement I - Where the single stockholder cannot prove that the property of the OPC is independent of the stockholder's personal property, the stockholder shall be jointly and severally liable for the debts and other liabilities of the OPC.

Statement II - The principles of piercing the corporate veil applies with equal force to One Person Corporation as with other corporations.

a)Statement I is correct while Statement II is incorrect.

b)Statement I is incorrect while Statement II is correct

c)Both statements are correct.

d)Both Statements are incorrect.

8.Which of the following powers of a corporation cannot be exercised by OPC?

a)Power to increase authorized capital stock

b)Power to decrease capital stock.

c)Power to declare dividends.

d)Power to issue shares to more than one stockholder.

9.The Annual financial statements of One Person Corporation can be certified under oath by the corporation's treasurer and president:

a)If the total assets or total liabilities of the OPC are less than Six hundred thousand pesos (P600,000.00),

b)If the total assets or total liabilities of the OPC are more than Six hundred thousand pesos (P600,000.00)

c)If the total assets and total liabilities of the OPC are less than Six hundred thousand pesos and more than Six hundred thousand pesos respectively.

d)In all of foregoing cases.

10.Which book is being referred as one which contains all actions, decisions, and resolutions taken by the One Person Corporation?

a)Stock and transfer book

b)Minutes Book

c)Annual Financial Statements

d)Membership Book

11.Which of the following corporations need a nominee and alternate nominee whose names must be indicated in the articles of incorporation?

a)Close Corporation

b)Corporation Sole

c)Religious Society

d)One Person Corporation.

12.Statement I: In unilateral obligations, only one party is obliged to comply with prestation.

Statement II: In bilateral obligations, both parties are mutually bound to each other,

Statement III : Non-reciprocal obligations are those which do not impose simultaneous and correlative performanceon both parties. The performance of one party is not dependentupon the simultaneousperformance by the other.

a. All statements are correct.

b. Only statement I is correct

c. Only Statements I and II are correct

d. Only statements I and III are correct

13.A contract that does not have any special name under the law is known as:

a.Nominate contract

b.Innominate contract

c.Special contract

d.Nominal contract

14.Statement I: Impossible conditions annul the obligation which depends upon them

Statement II: The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment,

a.Both statements are incorrect

b.Both Statements are correct

c.Statement I is correct; Statement II is incorrect

d.Statement I is incorrect; Statement II is correct.

15.S offers to sell his car to B for P125,000.00 cash. B accepts the offer but is willing to pay only P120,000.00.

a.The contract was perfected at the price of P125,000.00

b.The contract was perfected at the price of P125,000.00

c.The contract was perfected at the price of P122,500.00, the average price of the offerand the acceptance.

d.The contract was not perfected because the acceptance by B was qualified and it constituted a counter offer.

16.One of the following is not incapable of giving his consent:

a.Insane person

b.Deaf mute who do not know how to read and write.

c.Minors

d.Deaf-mutes of legal age who know how toread and write.

17.A contract entered into by an incapacitated person is -

a.Voidable

b.Void

c.Rescissible

d.Unenforceable

18.A contract entered into by an insane person during a lucid interval is -

a.Valid

b.Voidable

c.Rescissible

d.Void

19.Aside from fraud and undue influence, the following are the vices of consent except:

a.Violence

b.Intimidation

c.Mistake

d.Dealers' talk

20.Mistake in three of the following will make a contract voidable. Which one will not?

a.Mistake as to the substance of the thing which is the object of the contract.

b.Mistake as to the principal conditions which principally moved one or both parties to enter into the contract,

c.Mistake as to the identity or qualifications of one of the parties, which identity or qualification have been the principal cause of the contract.

d.Simple mistake of account.

21.It involves the employment of serious or irresistible force to obtain consent

a.Intimidation

b.Threat

c.Violence

d.Moral coercion

22.It is present when one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon the person or property or upon the person or property of his spouse, descendants and ascendants to give his consent.

a.Violence

b.Physical coercion

c.Intimidation

d.Mistake

23.One of the following contractsis not vitiatedby intimidation or violence, and hence valid:

a.A contract of sale which was signed by a party because his arm was being twisted by a third person.

b.A contract of sale which was enteredinto becausethe other party was poking a gun at his wife.

c.A contract where a party was compelled to assignhis property to the other party to pay a just debt because the latter threatened to sue him in court if he does not pay his debt.

d.A contract of donation the other party threatened to burn his house.

24.It exists when a person takes improper advantage of his power over the will of another depriving the latter of reasonable freedom of choice is -

a.Intimidation

b.Duress

c.Threat

d.Undue influence

25.A contract whose cause is the liberality of the benefactor is -

a.A gratuitous contract or contract of pure beneficence

b.A remuneratory contract

c.An aleatory contract

d.An onerous contract

26.The following are characteristics of rescissible contracts, except:

a.They may be set aside for equitable reasons.

b.They are valid until rescinded.

c.The action to rescind them prescribes.

d.The action to rescind them are not available to third persons even if their interest are directly affected.

27.These statements are presented to you.

Statement I: Human hair may validly be the object of a contract of sale.

Statement II : The donation by a mother of one of his kidneys to be transplanted to her son is valid.

In your evaluation of the foregoing statements:

a.Both statements are true

b.Both statements are false

c.Only Statement I is true

d.Only Statement II is true

28.These statements are presented to you:

Statement I: There may be more than two parties in a contract.

Statement II: A party to a contract may be composed of more than one person.

In your evaluation of the foregoing statements:

a. Statement I is true; Statement II is false

b. Statement I is false; statement II is true

c. Both statements are false

d. Both statements are true.

29.Which one must be in writing to be enforceable as required by the Statute of Frauds?

a.A subscription for 100 shares of stock of a corporation at P100,00 per share

b.A contract for the construction of a building scheduled to begin three monthsafter the execution of the contract.

c.A contract for the lease of an agricultural lotfor a period of 8 months

d.A contract whereby one agrees to pay another's debtif the latter defaults in his payment.

30.D, out of his love and affection for C, donated a parcel of land to the latter who accepted it. The formalitiesrequired by law were complied with. The contract between D and C is:

a.An onerous contract

b.A remuneratory contract

c.An accessory contract

d.A gratuitous contract

31.The obligation of a school to provide students a safe and secure environment and an atmosphere conducive to learning is an obligation arising from:

a.Law

b.Contract

c.Quasi-contract

d.Quasi-delict

32.A, B, and C are solidary debtors of X in the amount of P30,000.00. If A is insolvent, how much may X collect from B?

a.P30,000.00

b.P10,000.00

c.P20,000.00

d.P15,000.00

33.The creditor has a right to the fruits of the thing from the time

a.The obligation to deliver the thing arises

b.The thing and the fruits have been delivered

c.The contract is perfected

d.The payment of the price of the thingand its fruits has been made.

34.The kind of fraud which renders a contract voidable is -

a.Causal fraud

b.Incidental fraud

c.Fraud in performance

d.Future fraud

35.D obliged himself to give C 10 sacks of rice when X, C's father, dies. The obligation of D to C is -

a.An obligation with a suspensive condition.

b.An obligation with a resolutory condition.

c.A pure obligation.

d.An obligation with a period.

36.An obligation where various prestation are due but the performance of all of them is required in order to extinguish the obligation is known as:

a.Conjunctive obligation

b.Facultative obligation

c.Alternative obligation

d.Simple obligation

37.Which of the following statements does not pertain to dacion en pago?

a.Ownership of the thing is transferred to the creditor

b.It does not affect all the properties of the debtor.

c.It does not require plurality of creditors.

d.The debtor must be insolvent

38.Which of the following statements does not apply to payment by cession?

a.Ownership of the debtor's properties is transferred to the creditors.

b.The debtor must be insolvent.

c.It affects all the properties of the debtor except those exempt from execution.

d.There are several creditors.

39.D owes C P6,000. No date of payment was stipulated by the parties.

a.C cannot require D to pay because there is no date for payment.

b.C can require D to pay at anytime

c.D is not liable to C because the obligation is void there being no date of payment.

d.D is not required to pay unless C goes to court and asks the court to fix a period for the payment.

40.This refers to the modification or extinguishment of an obligation by another, either by changing the object or principal condition, substituting the person of the debtor, or subrogating a third person in the rights of the creditor.

a.Novation

b.Compensation

c.Payment

d.None of the foregoing

41.M owes P 10,000.00 the debt which is evidenced by a promissory note, is guaranteedby G. P assigns the note to A, A to B, B to C and C back to M. M's debt is extinguished. G's guaranty is likewise extinguished since the principal obligation it secures has been extinguished. The foregoing is a clear illustration of:

a.Confusion or merger

b.Compensation

c.Novation

d.None of the foregoing

42.An act of depositing the sum or thing due with the judicial authorities whenever the creditor refuses without just cause to accept the same or in cases when the creditor cannot acceptit is -

a.Tender of payment

b.Consignation

c.Consignment

d.None of the foregoing

43.A contract that can stand by itself is known as:

a.Accessory contract

b.Principal contract

c.Commutative contract

d.None of the foregoing

44.Which of the following is defined by law as a juridical necessity to give, to do or not to do?

a.Commitment

b.Obligation

c.Promise

d.None of the foregoing

45.Which of the following is defined in the Civil Code as one which does not grant a right of action to enforce its performance, but after voluntary fulfillment by the debtor, it authorizes the retention of what has been deliveredor rendered by reason thereof?

a.Civil obligations

b.Obligations arising from delicts

c.Natural Obligations

d.Obligations arising from quasi-delicts

46.Obligations arising from contracts have the force of law between the parties and should be complied with in good faith. Which of the following characteristics of contracts is referred to in the foregoing statement?

a.Autonomy of contracts

b.Mutuality of contracts

c.Relativity of contracts

d.Obligatory force of contracts.

47.It is one of the sources of obligations which is defined in the Civil Code as "a meeting of the minds between two persons whereby one binds himself , with respect to the other, to give something or to render some service."

a.Pledge

b.Promise

c.Donation

d.Contract

48.One in which one of the parties imposes a ready-made form of contract, which the other party may accept or reject, but which the latter cannot modify.

a.Contract of Adhesion

b.Contract of Antichresis

c.Freedom of Contract

d.None of the foregoing

49.These statements are presented to you.

Statement I: A void contract cannot give rise to a valid one.

Statement II: Void contracts can be ratified.

In your evaluation of the foregoing statements

a.Statement I is correct; Statement II is incorrect

b.Both Statements are correct

c.Both Statements are incorrect

d.Statement I is incorrect; Statement II is correct

50.Obligations may arise from any of the following, except:

a.Contracts

b.Quasi-contracts

c.Law

d.Prestation

51.A contract which has no force and effectfrom the very beginning as if it had never been entered into, and which cannot be validated either by time or ratification is-

a.Natural obligation

b.Unenforceable contract

c.Voidable contract

d.Void or Inexistent contract