RFBT - 1

Regulatory Framework for Business Transaction – 1
1. Lennie bought a business class ticker from Alta Airlines. As she checked in, the manager
downgraded her to economy on the ground that a Congressman had to be accommodate in the
business class. Lennie suffered discomfort and embarrassment of the downgrade. She sued the
airlines for quasi-delict but Alta Airlines countered that, since her travel was govern by a
contract between them, no quasi-delict could arise. Is the airlines correct?
a. No, the breach of contract may in fact tortious as when it is tainted as in this case with
arbitrariness, gross bad faith and malice.
b. No, denying Lennie the comfort and amenities of the business class as provided in the ticket
is a tortious act.
c. Yes, since the fact show a breach of contract, not a quasi-delict.
d. Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation
between the parties.
2. When one exercises a right recognized by law, knowing that he thereby causes an injustice to
another, the latter is entitled to recover damages. This known as the principle of.
a. Res ipsa loquitur

b. Damnum absque injurica
c. Vicarious liability
d. Abuse of Rights
3. A was employed as professional driver of B Transit Bus owned by C. In the course of his work, A
hit a concrete post causing serious injury to passenger W and pedestrian Y. The victims sued the
driver and the owner of the bus for damages. Which of the following statement is correct?
a. C is not liable if C can prove that the exercised the diligence of a good father of a family in
the selection and supervision of his employee.
b. The conviction of A in criminal case makes C subsidiary liable for damages arising from
criminal act.
c. The liability of C shall cease if the driver A is acquit in the criminal case.
d. The guilt of driver A must be establish beyond reasonable doubt to make C liable.
4. A owes B P1, 000. A, knowing that the debt has prescribed, nevertheless, still pays B. Can A
recover what he voluntarily paid?
Statement 1: Yes, because B has no right to demand the payment effected by A.
Statement 2: No, the payment extinguished the natural obligation.
a. True, True
b. True, False
c. False, True
d. False, False
5. Statement 1: if a person obliged to do something fails to do it, the same shall be execute at his
cost.
Statement 2: Those who in the performance of their obligation are guilty of fraud, negligence, or
delay and those who in any manner contravene the tenor there of, are liable for damages.
a. True, True
b. True, False
c. False, True
d. False, False
6. With regard to the right as to the fruits of the thing, which is not correct?
a. If the obligation is subject to a suspensive condition, the obligation to deliver arises from the
moment the condition happens.
b. If the obligation is subject to a suspensive period, the obligation to deliver arises upon the
expiration of the term or period.
c. If there is no condition or term for its fulfillment, the obligation to deliver arises from the
perfection of the contract or creation of the obligation.
d. If the obligation arises from a contract of sale, the vendor has a right to the fruits of the
thing from the time the obligation to deliver arises.
7. Statement 1: A commits the crime of theft asked to return the car to its owner B. However,
before the car was about to be delivered to B, it was destroyed by a fortuitous event. Is A’s
liability extinguished?
a. Yes, Yes
b. No, Yes
c. Yes, No
d. No, No
8. A obliges himself to give B a specific car on January 2, 2021 C burned the car which A promised
to deliver to B, which is correct?
a. A’s obligation to B is converted to monetary obligation.

b. A should file an action against C for the value of the car plus damages.
c. B can file an action against A for the value of the car plus damages.
d. B can file an action against C for the value of the car plus damages.
9. A, B, and C borrowed P24, 000 from Y and Z signed a promissory note dated January 30, 2021,
and due within six months. How much can Y collect from A (debtors are solidary while creditors
are joint), on due date?
a. P12, 000
b. P4, 000
c. P8, 000
d. P24, 000
10. A sold B his cow for P5, 000. No date is fix by the parties for the performance of their respective
obligations. The obligation of A is.
a. To deliver the cow immediately as there is a perfected contract.

b. To deliver the cow within the reasonable time from the perfection the contract.
c. To deliver the cow upon the payment by B of P5, 000.
d. To rescind the contract as there is no time fixed for the delivery and payment.
11. A, and B both undertook a contract to deliver to C in Manila a boat docked in Subic. Before they
could deliver it, however, the boat sank in storm. The contract provides that fortuitous event
shall not exempt A and B from their obligation. Owing to the loss of the motor boat, such
obligation is deem converted into one of indemnity for damages. Is the liability of A and B joint
or solidary?
a. Neither solidary nor joint since they cannot waive the defense of fortuitous event to which
they are entitled.
b. Solidary or joint upon the discretion of C.
c. Solidary since A and B failed to perform their obligation to deliver the motor boat.
d. Joint since the conversion of their liability to one of imdemnity for damages made it joint.
12. A, B and C executed a promissory note binding themselves to pay P9, 000 to X, Y and Z. The note
is now due and demandable. Can the creditors proceeds against A, alone for the payment of the
entire debt?
a. No, each creditor can collect only P3, 000 from A.

b. Yes, either X, Y or Z can collect P9, 000 from A.
c. No, each creditor can collect only P1, 000 from A.
d. Yes, since the promissory note is silent with to the rights of the creditors, the obligation is
presume to be solidary.
13. A, and B are jointly liable to deliver a particular car valued at P200, 000 to C on July 1, 2021.
Which is correct?
a. The prestation is indivisible making the liability of A and B solidary.

b. If on July 1, 2021, A is willing to deliver the car but B is not, C may enforce the obligation
against A.
c. A is liable for the proportionate part of the obligation and will be liable for damages if B is
not ready to comply with his obligation, even if A is willing to deliver the car.
d. The liability of A and B is joint and that damages may be assess only against the debtor
who violated the obligation.
14. A makes a check payable to bearer and gives the check to C, who gives it to D who finally gives it
to A. The obligation of A extinguished by.
a. Merger
b. Compensation
c. Novation
d. Prescription
15. A owes B P10, 000. A proposed to B that C will pay A’s debt and that A will be released from all
liabilities. B and C agreed to the proposal. Later, when B tries to collect from C, he finds out that
C is insolvent. It was proved that at the time of delegation, C was already insolvent but this was
not known to A, neither was the insolvency of public knowledge. Is A still liable?
a. Yes, because there is delegation.

b. No, because there is delegation.
c. Yes, because the initiative came from A.
d. No, because the insolvency was neither of public knowledge known to A at the time he
delegated his debt.
16. A, B and C executed a promissory note worded as follows: We promise to pay X, Y, and Z the
sum of P90, 000. Sgd. A, B, and C. Which is correct?
a. A is obliged to pay X, Y, and Z P90, 000.

b. A is obliged to pay X P60, 000.
c. A is obliged to pay to Y P30, 000.
d. A is obliged to pay Z P10, 000.
17. Payment by cession as distinguished from dation in payment.
a. The debtor is not necessarily in a state of financial difficulty.

b. The effect is to release the debtor for the net proceeds of things ceded or assigned.
c. The property is alienate by the debtor to the creditor in the satisfaction of a debt in money.
d. What is deliver by the debtor is merely a thing to be consider as the equivalent of the
performance of obligation.
18. Anne allowed Bessy P1M due on October 1, 2014 but failed to pay her on due date. Bessy sent a
demand letter to Anne giving her 5 days from receipt within which to pay. Two days after receipt
of the letter, Anne personally offered to pay Bessy in Manager’s check but the latter refused to
accept the same. The 5 days lapsed. May Anne’s obligation be considered extinguish.
a. Yes, since Bessy’s refusal of the manager’s check, which is presume funded amounts to a
satisfaction of the obligation.
b. No, since tender of payment even in cash, if refused, will not discharge the obligation
without proper consignation in court.
c. Yes, since Anne tendered payment of the full amount due.
d. No, since a manager’s check is not consider legal tender in the Philippines.
19. What is the following obligations maybe subject to LEGAL COMPENSATION?
a. Obligation of depository in a contract of deposit.

b. Obligation of bailee in a contract of commodatum.
c. Obligation arising from crime or delict.
d. Obligations arising from contract of loan or mutuum.
20. What is the prescriptive period of the right to file an action based on quasi-delict, quasi-
contract, and oral contract and written contract?
a. 4 years, 6 years, 6 years, 10 years

b. 4 years, 5 years, 6 years, 8 years
c. 1 year, 4 years, 6 years, 10 years
d. 4 years, 4 years, 6 years, 10 years

RFBT - 1

Uploaded by

Copyright:

Available Formats

RFBT - 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

RFBT - 1

Uploaded by

Copyright:

Available Formats

Regulatory Framework for Business Transaction – 1

a. Res ipsa loquitur

a. A’s obligation to B is converted to monetary obligation.

a. To deliver the cow immediately as there is a perfected contract.

a. No, each creditor can collect only P3, 000 from A.

a. The prestation is indivisible making the liability of A and B solidary.

a. Yes, because there is delegation.

a. A is obliged to pay X, Y, and Z P90, 000.

17. Payment by cession as distinguished from dation in payment.

a. The debtor is not necessarily in a state of financial difficulty.

19. What is the following obligations maybe subject to LEGAL COMPENSATION?

a. Obligation of depository in a contract of deposit.

a. 4 years, 6 years, 6 years, 10 years

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.