Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Synthesis
Regulatory Frameworks in Business Transactions
Activity 2
Name: ___________________________________________________ Score: _______________________
Course/Year/Block: ________________________________________ Date: ________________________
Multiple Choice: In a yellow paper, write the letter of the correct answer.
1. Is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily
joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions
to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the
undertaking in accordance with universally accepted cooperative principles.
a. Cooperative
b. Sole proprietorship
c. Partnership
d. Corporation
2. I. A member shall have the right to examine the records required to be kept by the cooperative during reasonable hours
on business days and he may demand, in writing, for a copy of excerpts from said records without charge except the
cost of production.
II. Any officer of the cooperative who shall refuse to allow any member of the cooperative to examine and copy excerpts
from its records shall be liable to such member for damages, if such refusal is pursuant to a resolution or order of the
board of directors, the liability under this article shall be imposed upon the directors who voted for such refusal.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
3. No member shall transfer his shares or interest in the cooperative or any part thereof unless.
a. He has held such share capital contribution or interest for not less than one (1) year.
b. The assignment is made to the cooperative or to a member of the cooperative or to a person who falls within the
field of the membership of the cooperative.
c. The board of directors has approved such assignment.
d. All of the above.
4. I. Cooperatives transacting business with both members and non-members shall not be subjected to tax on their
transactions with members.
II. The transactions of members with the cooperative shall not be subject to any taxes and fees.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
5. I. A director who, by virtue of his office, acquires for himself an opportunity which should belong to the cooperative shall
be liable for damages and must account for double the profits that otherwise would have accrued to the cooperative by
refunding the same, unless his act has been ratified by a three-fourths (3/4) vote of all the members with voting rights,
present and constituting a quorum.
II. All complaints for the removal of any elected officer shall be filed with the board of directors. Such officer shall be
given the opportunity to be heard. Majority of the board of directors may place the officer concerned under preventive
suspension pending the resolution of the investigation. Upon finding of a prima facie evidence of guilt, the board shall
present its recommendation for removal to the general assembly.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
6. I. A quorum shall consist of at least 20% of all the members entitled to vote.
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II. In the case of electric cooperatives registered under the Philippine Cooperative Code, a quorum, unless otherwise
provided in the bylaws, shall consist of five per centum (5%) of all the members entitled to vote.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
7. The general assembly shall have the following exclusive powers which cannot be delegated:
a. To determine and approve amendments to the articles of cooperation and bylaws.
b. To elect or appoint the members of the board of directors, and to remove them for cause. However, in the case of
the electric cooperatives registered under the Philippine Cooperative Code, election of the members of the board
shall be held in accordance with its bylaws or election guideline of such electric cooperative; and
c. To approve developmental plans of the cooperative.
d. All of the above.
8. I. Any officer or employee of the CDA shall be disqualified to be elected or appointed to any position in a cooperative:
Provided, That the disqualification does not extend to a cooperative organized by the officers or employees of the CDA.
II. All appointive officials of the Government shall be ineligible to become officers and directors of cooperatives:
Provided, That the disqualification does not extend to a party list representative being an officer of a cooperative he or
she represents.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
9. Is one who has no right to vote nor be voted upon and shall be entitled only to such rights and privileges as the bylaws
may provide: Provided, That an associate who meets the minimum requirements of regular membership, continues to
patronize the cooperative for two (2) years, and signifies his/her intention to remain a member shall be considered a
regular member.
a. Regular member
b. Irregular member
c. Principal member
d. Associate member
10. The merger or consolidation of cooperatives shall have the following effects:
a. The constituent cooperatives shall become a single cooperative which, in case of merger, shall be the surviving
cooperative, and, in case of consolidation, shall be the consolidated cooperative.
b. The separate existence of the constituent cooperatives shall cease, except that of the surviving or the consolidated
cooperative.
c. The surviving or the consolidated cooperative shall possess all the assets, rights, privileges, immunities and
franchises of each of the constituent cooperatives.
d. All of the above.
11. I. No merger or consolidation shall be valid unless approved by a 2/3 vote of all the members with voting rights, present
and constituting a quorum of each of the constituent cooperatives at separate general assembly meetings. The
dissenting members shall have the right to exercise their right to withdraw their membership.
II. The merger or consolidation shall be effective upon the issuance of the certificate of merger or consolidation by the
CDA.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
12. I. Contracts executed between private persons and cooperatives prior to the registration of the cooperative shall remain
void between the parties and upon registration of the cooperative.
II. Any registered cooperative may, by a resolution approved by a vote of three-fourths (3/4) of all the members with
voting rights, present and constituting a quorum, resolve to divide itself into the two (2) or more cooperatives.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
13. I. All amendments to the article of cooperation and/or bylaws shall be submitted to the CDA.
II. The amendments shall take effect upon its approval by the CDA or within thirty (30) days from the date of filing
thereof if not acted upon by the CDA for a cause not attributable to the cooperative.
a. Only I is true
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b. Only II is true
c. Both are true
d. Both are false
14. I. A certificate of registration issued by the CDA under its official seal shall be prima facie evidence that the cooperative
therein mentioned is duly registered unless it is proved that the registration thereof has been cancelled.
II. Any provision or matter stated in the articles of cooperation and by laws may be amended by two-thirds (2/3) vote of
all the members with voting rights, without prejudice to the right of the dissenting members to exercise their right to
withdraw their membership.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
15. I. A cooperative formed and organized acquires juridical personality from the date the CDA issues a certificate of
registration under its official seal.
II. All applications for registration shall be finally disposed of by the CDA within a period of sixty (60) days from the filing
thereof, otherwise the application is deemed approved, unless the cause of the delay is attributable to the applicant.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
16. I. A cooperative duly registered shall have limited liability.
II. A cooperative shall exist for a period not exceeding fifty (50) years from the date of registration unless sooner
dissolve or unless said period is extended.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
17. I. Any newly organized primary cooperative may be registered as multipurpose cooperative only after compliance with
the minimum requirements for multipurpose cooperatives to be set by the CDA.
II. A single-purpose cooperative may transform into a multipurpose or may create subsidiaries only after at least three
(3) years of operations.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
18. I. Fifteen (15) or more juridical or natural persons who are Filipino citizens, of legal age, having a common bond of
interest and are actually residing or working in the intended area of operation, may organize a primary cooperative.
II. A prospective member of a primary cooperative must have completed a Pre-Membership Education Seminar
(PMES).
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
19. A cooperative may be organized and registered for any or all of the following purposes:
a. To encourage thrift and savings mobilization among the members.
b. To generate funds and extend credit to the members for productive and provident purposes.
c. To encourage among members systematic production and marketing.
d. All of the above.
20. Shall include the members of the board of directors, members of the different committee created by the general
assembly, general manager or chief executive officer, secretary, treasurer and members holding other positions as may
be provided for in their bylaws.
a. Officers of the cooperative
b. Member of the cooperative
c. Representative assembly
d. Social audit
21. Refers to the government agency in charge of the registration and regulation of cooperatives.
a. Securities and Exchange Commission (SEC)
b. Department of Trade and Industry (DTI)
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c. Civil Service Commission (SEC)
d. Cooperative Development Authority (CDA)
22. Means the operative act granting juridical personality to a proposed cooperative and is evidenced by a certificate of
registration.
a. Incorporation
b. Dissolution
c. Registration
d. Winding up
23. Shall refer to anybody entrusted with specific functions and responsibilities under the bylaws or resolution of the general
assembly or the board of directors.
a. Assembly
b. Committee
c. Consultant
d. Technical working group
24. Shall mean the full membership of the cooperative duly assembled for the purpose of exercising all the rights and
performing all the obligations pertaining to cooperatives.
a. Shareholder’s meeting
b. Members meeting
c. General assembly
d. Partners assembly
25. An act penalizing the making or drawing and issuance of a check without sufficient funds or credit.
a. Batas pambansa blg. 20
b. Batas pambansa blg. 21
c. Batas pambansa blg. 22
d. Batas pambansa blg. 23
26. The following is punishable under Batas Pambansa blg. 22:
I. Any person who makes or draws and issues any check to apply on account or for value, knowing at the time of issue
that he does not have sufficient funds in or credit with the drawee bank for the payment of such check in full upon its
presentment, which check is subsequently dishonored by the drawee bank for insufficiency of funds or credit or would
have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop
payment.
II. Any person who, having sufficient funds in or credit with the drawee bank when he makes or draws and issues a
check, shall fail to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a
period of 60 days from the date appearing thereon, for which reason it is dishonored by the drawee bank.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
27. I. It shall not be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon
presentment, to cause to be written, printed, or stamped in plain language thereon, or attached thereto, the reason for
drawee's dishonor or refusal to pay the same.
II. Where there are no sufficient funds in or credit with such drawee bank, such fact shall always be explicitly stated in
the notice of dishonor or refusal.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
28. I. The general rule is that the burden rests on the defendant to prove payment, rather than on the plaintiff to prove
nonpayment.
II. The rule so well-settled is that a receipt of payment is the best evidence of the fact of payment.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
29. I. The law provides that the delivery of mercantile documents including checks “shall produce the effect of payment
only when they have been deposited.”
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II. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has
been completely delivered or rendered, as the case may be.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
30. I. The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of
the obligation, unless there is a stipulation to the contrary.
II. Whoever pays for another may demand from the debtor what he has paid, except that if he paid without the
knowledge or against the will of the debtor, he can recover only insofar as the payment has been beneficial to the
debtor.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
31. The rules on application of payment are the following, except:
a. The right to designate the debt to which the payment shall be applied belongs primarily to the debtor.
b. If the debtor does not apply payment, the creditor may designate which debt is paid by specifying in the receipt.
c. If the creditor did not apply or if application is void, the debt which is most onerous to the creditor, among those
due, shall be deemed to have been satisfied.
d. If the debts due are of the same nature and burden, the payment shall be applied to all of them proportionately.
32. The following are the requisites of conventional compensation:
I. That each of the parties can dispose of the credit he seeks to compensate.
II. That they agree to the mutual extinguishment of their credits.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
33. I. There is exact mathematical formula to determine proximate cause.
II. Proximate cause is based upon mixed considerations of logic, common sense, policy and precedent.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
34. In delict or acts or omissions punished by law, what is not included in civil liability?
a. Restitution
b. Reparation of the damaged caused
c. Indemnification for consequential damages
d. Interest
35. There is no negotiorum gestio in one of these instances:
I. When the property or business is not neglected or abandoned.
II. If in fact the manager has been tacitly authorized by the owner.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
36. The three essential elements of a cause of action are the following, except:
a. The legal right of the plaintiff.
b. The correlative obligation of the defendant.
c. The act or omission of the plaintiff in violation of said legal right.
d. The act or omission of the defendant in violation of said legal right.
37. X has been missing for some time leaving no one to manage his properties. A and B jointly took charge of the
management thereof. However, due to the negligence of A, the properties of X were damaged. The liability therefore to
X for damages shall be:
a. only A shall be liable
b. both shall be jointly liable
c. both shall be solidarily liable
d. A and B are not liable
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38. Is the power belonging to a person over a specific thing, without a passive subject individually determined, against
whom such right may be personally exercised.
a. Real right
b. Personal right
c. Actual right
d. Private right
39. I. Dolo incidente is a fraud which induces a party to enter into a contract.
II. Dolo causante is not the reason that induced the party to enter into a contract.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
40. I. Negligence signifies willfulness or deliberate intent to cause damage or injury to another.
II. Negligence signifies also mere want of care or diligence and not the voluntariness of act or omission.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
41. I. As a general rule, negligence is presumed from the breach of a contractual obligation.
II. As a general rule, fraud must be clearly proved.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
42. Fault or negligence of obligor by virtue of which he is unable to perform his obligation arising from a pre-existing
contract.
a. Culpa contractual
b. Culpa civil
c. Culpa criminal
d. Culpa aquiliana
43. I. In culpa contractual, the source of the liability of the defendant is the breach of contract.
II. In culpa aquiliana, the source of the liability is the defendant’s negligent act or omission itself.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
44. I. In culpa contractual, proof of due diligence in the selection and supervision of employees is available as a defense.
II. In culpa aquiliana, proof of due diligence in the selection and supervision of employees is available as a defense.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
45. Which statement describes culpa aquiliana?
a. There is no pre-existing contractual relation.
b. Proof of due diligence in the selection and supervision of employees is not available as a defense.
c. The liability of the employers is based upon the principle that the negligence of the employee is conclusively
presumed to be the negligence of the employer.
d. The source of the liability of the defendant is the breach of contract.
46. Which one of the following is not a requisite of mora solvendi?
a. The obligation is demandable and liquidated.
b. The obligation is not necessary demandable.
c. The debtor delays performance.
d. The creditor judicially or extrajudicially requires the debtor’s performance.
47. The voluntary relinquishment or abandonment, express or implied, of a legal right or advantage.
a. Waiver
b. Condonation
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c. Compensation
d. Force majeure
56. I. When the plaintiff’s own negligence was not the immediate and proximate cause of his injury, he cannot recover
damages.
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II. If the plaintiff’s negligence was only contributory, the immediate and proximate cause of the injury being the
defendant’s lack of due care, the plaintiff may recover damages, but the courts shall mitigate the damages to be
awarded.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
57. Are those which arise from the same cause, and which each party is a debtor and a creditor of the other, such that the
obligation of one is dependent upon the obligation of the other.
a. Reciprocal obligation
b. Unilateral obligation
c. Natural obligation
d. Specific obligation
58. I. When what is to be delivered is a generic thing, the creditor, may compel the debtor to make the delivery.
II. If the thing is a determinate thing, the creditor may ask that the obligation be complied with at the expense of the
debtor.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
59. Which of the following is not a requisite of default?
a. That the obligation be demandable and already liquidated.
b. That the debtor defaulted on maturity date of the obligation.
c. That the debtor delays performance.
d. That the creditor requires the performance judicially and extrajudicially.
60. In the following instances, demand is not necessary, except:
a. When the obligation or the law expressly so declares.
b. When from the nature and the circumstances of the obligation it appears that the designation of the time when the
thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the
contract.
c. In unilateral obligation.
d. When the demand would be useless, as when the obligor has rendered it beyond his power to perform.
61. I. In compensation morae, the parties cancels out the effects of default, such that it is as if no one is guilty of delay.
II. In reciprocal obligations, as in a contract of sale, the general rule is that the fulfillment of the parties’ respective
obligations should be simultaneous.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
62. I. When the obligation assumed by a party to a contract is expressly subjected to a condition, the obligation cannot be
enforced against him unless the condition is complied with.
II. The obligatory force of a conditional obligation is subordinated to the happening of a future and uncertain event, so
that if that event does not take place, the parties would stand as if the conditional obligation had never existed.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
63. An obligation where one, two or more of the objects are due. One of the objects must be performed to extinguish the
obligation.
a. Alternative obligation
b. Facultative obligation
c. Compound obligation
d. Distributive obligation
64. D is obliged to give C a specific ring. The parties agreed that D may give a specific bracelet as a substitute. Which of
the following is true?
a. If the ring is lost through a fortuitous event before substitution, the obligation is extinguished.
b. If the bracelet is lost through a fortuitous event before the substitution, the obligation is extinguished.
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c. If the ring is lost through a fortuitous event after substitution, the obligation is extinguished.
d. If the ring is lost through the debtor’s fault after substitution, the debtor shall pay damages.
65. I. In alternative obligation, the right of choice belongs to the creditor, unless it has been expressly granted to the debtor.
II. The debtor shall have no right to choose those prestations which are impossible, unlawful or which could not have
been the object of the obligation.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
66. I. In alternative obligations, the right of choice may pertain even to the creditor.
II. In facultative obligations, the right of choice pertains only to the creditor.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
67. I. In case of concurrence of two or more creditors or of two or more debtors in one and the same obligation, and in the
absence of express and indubitable terms characterizing the obligation as solidary, the presumption is that the
obligation is only solidary.
II. It thus becomes incumbent upon the party alleging that the obligation is indeed joint in character to prove such fact
with a preponderance of evidence.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
68. The following are other terms interchangeably used with joint obligations, except:
a. Pro rata
b. In solidum
c. Mancomunada
d. Proportionate
69. The following are other terms interchangeably used with solidary obligations, except:
a. Joint and several
b. Conjoint
c. Individually and collectively
d. Juntos o separadamente
70. I. In case of breach of the obligation, the indivisible obligation is converted into indemnity for damages; thus, the
indivisible character of the obligation is terminated.
II. In case of breach of the obligation, the solidary character of the obligaton becomes joint.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
71. I. Solidarity makes a solidary obligor an indispensable party in a suit filed by the creditor.
II. When the law expressly provides for solidarity of the obligation, as in the liability of co-principals in a contract of
agency, each obligor may be compelled to pay the entire obligation.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
72. I. Contracts are law between the parties, and they are bound by its stipulations.
II. It is a rule that a contract freely entered between the parties should be respected, since a contract is the law between
the parties.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
73. Those contracts which require not only the consent of the parties for their perfection, but also the delivery of the object
by any one party to the other.
a. Formal
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b. Real
c. Consensual
d. Principal
74. I. Failure to follow the proper form invalidates a contract.
II. Where a contract is not in the form prescribed by law, the parties can merely compel each other to observe that form,
once the contract has been perfected.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
75. An instrument authenticated by a notary public or a competent public official with the formalities required by law.
a. Private document
b. Public document
c. Memorandum of understanding
d. Written of agreement
76. I. Formalities intended for greater efficacy or convenience or to bind third persons, if not done, would adversely affect
the validity or enforceability of the contract between the contracting parties themselves.
II. When the form required is for validity, its non-observance renders the contract void and of no effect.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
77. I. When the form required is for validity, its non-observance renders the contract voidable.
II. When the required form is for enforceability, non-compliance therewith will not permit, upon the objection of a party,
the contract, although otherwise valid, to be proved or enforced by action.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
78. I. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites
for their validity are present.
II. When, however, the law requires that a contract be in some form for it to be valid or enforceable, that requirement
must be complied with.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
79. C and R are the legitimate children of H and W who later parted ways. To help support the children, W filed a case for
the dissolution and separation of the conjugal partnership. A separate lot was adjudicated by the court in favor of H.
Meanwhile, H, until his death at age 64, lived with U. However, before his death, he conveyed the subject land to U’s
sister, Y. At the time H, purportedly sold the lot in question to Y, he was already totally blind and paralyzed. Y conveyed
the parcel of land to M.
Prior to the sale to M, C and R, filed an action for cancellation of title against Y, alleging that the consent of their
father was vitiated due to his physical infirmities. C and R, filed a supplemental complaint, this time against M, for the
nullification of the sale to the latter of subject lot. Is the sale between H and Y valid?
a. Yes, because H could understand the contents of the deeds of sale.
b. No. As the party seeking to enforce the contract, M should have presented evidence showing that the terms of the
deeds of sale to Y were fully explained to H.
c. Yes, because H consented to a contract whose terms he knew or understood.
d. Yes, it can be presumed that H, knew the contents of the deeds of sale disposing of his properties
80. H and W borrowed from X the amount of P175,000 because of financial distress, payable within 6 months with an
interest rate of 6% per month. To secure the payment of the loan, H and W mortgaged their house and lot. H and W
failed to pay the loan upon demand. Consequently, the real estate mortgage was foreclosed. The house and lot was
awarded to X, who was the only bidder. Is there an undue influence?
a. None. There is no showing that H and W’s consent to the loan and mortgage agreements was vitiated by undue
influence.
b. There is undue influence because their consent was vitiated.
c. There is undue influence as H and W were in financial distress; hence, there is deprivation of their free agency.
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d. There is undue influence because the lingering financial woes of spouses H and W can be equated with the
presence of undue influence
81. Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to
constitute the contract. Which of the following constitute an offer?
a. An offer made through an agent
b. Business advertisement of things for sale
c. Advertisement for bidders
d. Answer not given
82. X offers to sell his house to Y for P100,000. Y asks him if he would accept P80,000. Which of the following is correct?
a. Because of ambiguity, both offers are terminated by operation of law.
b. Y’s response is a counter-offer effectively terminating the P100,000 offer and instigating an offer for P80,000.
c. Y’s response is a rejection of the P100,000 offer, and there is no offer for P80,000 because it is too indefinite to be
an offer.
d. Y’s response is a mere inquiry, theP100,000 offer by X is still there.
83. Which is not an exception in the rule “lesion or inadequacy of cause shall not invalidate a contract.”
a. In cases specified by law.
b. When there has been fraud.
c. When there has been mistake.
d. When there has been violence.
84. The particular reason of a contracting party which does not affect the other party.
a. Consent
b. Object
c. Cause
d. Motive
85. I. Misrepresentation made in good faith is not fraudulent but may constitute error.
II. A fraud known as incidental fraud is basically a deception used by one party prior to or simultaneous with the
contract, in order to secure the consent of the other.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
86. The following are the requisites of causal fraud, except:
a. It must have been employed by one contracting party upon the other.
b. It must have induced the other party to enter into the contract.
c. It must not be serious.
d. It must have resulted in damage and injury to the party seeking annulment.
87. A deception used by one party prior to or simultaneous with the contract, in order to secure the consent of the other.
Needless to say, the deceit employed must be serious.
a. Fraud
b. Causal fraud
c. Incidental fraud
d. Malice
88. I. A threat to enforce one's claim through competent authority, if the claim is just or legal, does not vitiate consent.
II. Violence or fraud shall annul the obligation, although it may have been employed by a third person who did not take
part in the contract.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
89. I. There is intimidation when in order to wrest consent, serious or irresistible force is employed.
II. There is intimidation when one of the contracting parties is compelled by a reasonable and well-grounded fear of an
imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants or
ascendants, to give his consent.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
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90. I. If the period has a separate consideration, a contract of "option" is deemed perfected, and it would be a breach of that
contract to withdraw the offer during the agreed period.
II. Business advertisements of things for sale are definite offers.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
91. I. An offer becomes effective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance
is conveyed.
II. The contract is perfected at any time before acceptance is conveyed.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
92. Which of the following is not a requisite to consider a person an accommodation party?
a. He must not be liable to a holder in due course.
b. He must be a party to the instrument signing as maker, drawer, acceptor or endorser.
c. He must not receive value therefore.
d. He must sign for the purpose of lending his name or credit
93. Which of the following instruments is not negotiable for the reason that the instrument is not payable at a determinable
future time?
a. “On the death of X, I promise to pay to the order of B P1,000.
(Sgd.) A”
b. “ On or before October 30, 2010, I promise to pay B or his order P 1,000.
(Sgd.) A”
c. “Sixty days after sight, I promise to pay to the order of B P 1,000.
(Sgd.) A”
d. “Ten days before the death of X, I promise to pay B or his order.
(Sgd.) A”
94. This instrument is negotiable:
a. “I promise to pay P20,000.” (Signed:J)
b. “Pay P or order P20,000 if he marries M.” (Signed: J)
c. “I promise to pay O or order 20 cavans of Ngina rice in January.”
d. “Good to M or order, P20,000. (Signed:J)
95. When there are three, the drawer, the payee and the drawee, the instrument is a:
a. Promissory note
b. Bill of exchange
c. Certificate of indebtedness
d. Bank check
96. A bill of exchange may be treated and considered a promissory note:
a. When the drawer and the drawee are the same person
b. When the drawee are fictitious
c. When the instrument is ambiguous
d. All of the above
97. The minimum numbers of organizer of primary cooperative is?
a. Five (5) Natural Person
b. Ten (10) Natural Person
c. Fifteen (15) Natural Person
d. Twenty (20) Natural Person
98. To extend the term of cooperative, it requires vote of?
a. Two-thirds (2/3) of all the members with voting rights
b. Two-thirds (2/3) of all the members with voting rights, present and constituting a quorum
c. Three-forth (3/4) of all the members with voting rights
d. Three-forth (3/4) of all the members with voting rights, present and constituting a quorum
99. A type of cooperative wherein the primary purpose of which is to procure and distribute commodities to members and
non-members?
a. Producers Cooperative
b. Service Cooperative
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c. Multipurpose-cooperative
d. Consumers cooperative
100. The maximum share capital that a member of primary cooperative may own or hold in a cooperative is
a. Five per centum (5%)
b. Ten per centum (10%)
c. Twenty per centum (20%)
d. Thirty per centum (30%)
Prepared by:
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