RFBT 2nd Mastery Handout October 2018 CPA Board Exam
RFBT 2nd Mastery Handout October 2018 CPA Board Exam
RFBT 2nd Mastery Handout October 2018 CPA Board Exam
3. What is the name of the contract if the goods are to be manufactured especially for the customer upon
his special order and not for the general market?
a. Contract of barter
b. Contract of sale
c. Contract for a piece of work
d. Contract of lease
4. A and B entered into a contract whereby A agreed to deliver a specific cellphone worth P20,000 to B
while B will deliver a specific laptop worth P10,000 and cash amounting to P10,000 to A. What is the
name of the contract entered into by A and B?
a. Contract of barter
b. Contract of sale
c. Contract for a piece of work
d. Contract of lease
5. In emptio rei speratae or sale of future things or things having potential existence, what is the effect to
the contract of sale if the said subject matter does not come into existence?
a. The contract becomes ineffective or void for absence of subject matter.
b. The seller will never be liable for damages.
c. The contract becomes unenforceable
d. The contract remains to be perfectly valid.
6. S is the sole owner of a specific condominium unit. S sells ½ undivided interest therein to B. Is the contract of
sale valid?
a. No because the object of a contract of sale must be determinate.
b. No because the object of a contract of sale must be whole interest.
c. Yes the sole owner of a thing may sell an undivided interest therein and such sale shall produce the
effect of making the seller and the buyer co-owners of the thing sold.
d. Yes provided that the condominium unit shall be physically divided.
7. In which of the following instances is the contract of sale void because the price is uncertain?
a. S sold to B a specific cellphone for P25,000 which both parties agreed upon.
b. S sold to B a certain watch of which the price is the salary of reviewer of PRIA CPA Review School.
c. S sold to B a specific motorcycle the price of which is subject to determination of X, third person.
d. S sold to B 100 shares of common stocks of BDO at the price equivalent to the closing price of the BPI's
common stocks on June 30,2018 at the Philippine Stock Exchange.
8. What is the effect to the contract of sale if the determination of the price is left to the judgment of a third
person and such person is unable or unwilling to fix the price?
a. The contract of sale is voidable.
b. The contract of sale is valid and binding.
c. The contract of sale is inefficacious unless the parties subsequently agree upon the price.
d. The contract of sale is rescissible.
Page 1 of 13
9. What is the effect of gross inadequacy of price in a contract of sale?
a. It renders the contract of sale void.
b. In renders the contract of sale unenforceable.
c. It does not affect a contract of sale, except as it may indicate a defect in the consent which makes
the contract voidable or except as it may indicate that the intention is another contract.
d. It does not affect a contract of sale even if the parties really intended a donation or some other act or
contract.
10. What is the effect of employment by the seller of by-bidders or puffers without notice to the other
bidders in a perfected contract of sale by auction?
a. The sale may be considered voidable.
b. The sale may be considered void.
c. The sale may be considered unenforceable.
d. The sale may be considered rescissible.
11. In a contract of sale, what is the operative act that transfers ownership of the thing sold from the seller to
the buyer?
a. Delivery whether actual or constructive
b. Consent of the contracting parties on the determinate thing and price certain in money
c. Full payment of the price
d. Execution of the written deed of sale
12. S promised to sell his car to B for P200,000 giving B one month to decide whether to buy or not. B
accepted the promise and gave a consideration of P10,000 for the one month period. Which is correct?
a. If B decides to buy the car, B should only pay P190,000 to S because the amount given is arras
money.
b. If B decides to buy the car, B should still pay P200,000 to S because the amount given is
option money.
c. S may sell the car to other persons before the lapse of the one month period without incurring
any liability for damages.
d. Upon payment of the P10,000 cash, the contract of sale is perfected.
13. S sold a specific car to B at an instalment price of P100,000 payable in ten equal monthly instalment of P10,000.
In order to secure the payment of the price, B executed a chattel mortgage over the said car with a stipulation that
S may recover the deficiency in case the foreclosure of the chattel mortgage resulted to deficiency. After
religiously paying the seven monthly instalments, B defaulted on the payment of the eight monthly instalment.
What remedy is available to S?
a. Exact fulfillment of the obligation
b. Cancel the sale
c. Foreclose the chattel mortgage on the car sold
d. Any of the above
14. Using the same data in number 13 and the car is sold in public auction by virtue of writ of attachment
resulting to deficiency, which is correct?
a. S may recover the deficiency from the public sale only because it is stipulated in the contract.
b. S may recover the deficiency from the public sale even if it is not stipulated in the contract.
c. S can never recover any deficiency from the public sale even there is stipulation for recovery.
d. S may recover the deficiency from the public sale by foreclosure of the chattel mortgage.
15. Using the same data in number 13 except that B defaulted on the remaining three monthly instalments
and S decided to cancel the sale, which is correct?
a. S may still file an action for exact fulfilment after the cancelation.
b. S may still foreclose the chattel mortgage on the car sold.
c. S has no recourse against the buyer for the price of the car sold.
d. S has no obligation to return the instalments received to B.
16. Using the same data in number 13 except that B defaulted on the remaining three monthly instalments
and S decided to foreclose the chattel mortgage on the car sold resulting to deficiency, which is correct?
a. S may recover the deficiency from the public sale only because it is stipulated in the contract.
b. S may recover the deficiency from the public sale even if it is not stipulated in the contract.
c. S can never recover any deficiency from the public sale even there is stipulation for
recovery.
d. S may recover the deficiency from the public sale by attachment or execution.
Page 2 of 13
17. S sold a residential house and lot to B at a price of P10,000,000 payable as follows: P4,000,000 at the
signing of contract and the balance in 50 years at equal monthly installment of P10,000. B was able to
pay a total monthly installments of P1,200,000. What is the grace period earned by B to pay the
defaulted installments without additional interest?
a. 10 months
b. 60 days
c. 43 months
d. 33 months
18. Using the same data in the preceding number, what is the cash surrender value to be paid by S to B in
case the contract of sale is property cancelled in accordance to the requirements of the law?
a. P4,680,000
b. P3,900,000
c. P3,500,000
d. P4,200,000
19. Under PD 957 also known as Subdivision and Condominium buyer's Protective Decree, who shall pay
the Real estate tax and assessment on a lot or unit being developed before the passage of title to buyer?
a. Developer or owner of the project subject to reimbursement by the buyer.
b. Owner or developer without recourse to the buyer.
c. Buyer of the unit.
d. Developer and buyer equally.
20. S sold a specific pencil and specific notebook to B, a minor, at a total price of P25. S has already
delivered the items sold to B. Which is correct?
a. B is required to pay a reasonable price to S because the subject matter is a necessary.
b. B is not required to pay any price because he is an incapacitated person.
c. B's guardian may file an action for annulment of contract of sale.
d. S may file an action for annulment of contract of sale.
21. The following persons are prohibited from acquiring by purchase, even at public or judicial auction,
sales in legal redemption, compromises or renunciation, except
a. The ward, the property of the of his guardian.
b. Agents, the property whose administration or sale may have been entrusted to them, unless the consent of
the principal has been given.
c. Executors and administrators, the property of the estate under their administration.
d. Public officers and employees, the property of the State or GOCC under their administration.
e. Justices, judges, prosecuting attorneys, clerks of court and other officers and employees connected with
the administration of justice, the property and rights in litigation.
22. H and W are legally married and governed by property regime of absolute community of property. H
pointed a gun to W to compel the latter to sell her car to the former. W signed the deed of sale as a result
of the intimidation. What is the status of the contract of sale of car?
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
23. S and B entered into a contract of sale of the grains inside the warehouse of S. S delivered the key of the
warehouse to B. What type of constructive delivery is present?
a. Traditio clavium
b. Traditio longa manu
c. Traditio brevi manu
d. Traditio constitution possessorium
24. S and B entered into a contract of lease of a specific car with bargain purchase option available to B at
the end of the lease term. At the end of the lease term, B purchased the leased car. What type of
constructive delivery is present?
a. Traditio clavium
b. Traditio longa manu
c. Traditio brevi manu
d. Traditio constitution possessorium
Page 3 of 13
25. On July 1, S delivered an electronic calculator to B under a sale or return arrangement. S gave B up to
August 1 to return the electronic calculator. On July 25, the calculator was destroyed by lightning.
Should B pay for the purchase price?
a. No because B is not yet the owner of the calculator.
b. No because the calculator is destroyed through fortuitous event.
c. Yes because B becomes the owner of the calculator upon delivery.
d. Yes but only if B is guilty of contributory negligence.
26. S deposited his specific laptop to the SM baggage counter. The manager of SM displayed the said laptop
to the SM Department Store where B was able to acquire it for a price of P15,000. Which is correct?
a. S may recover the said laptop without reimbursing B.
b. S may recover the said laptop but he must reimburse B.
c. B obtain good title over the said laptop.
d. The contract of sale is void.
27. What is the ground for the exercise by the unpaid seller of right of stoppage in transitu?
a. The buyer becomes insolvent.
b. The goods are perishable.
c. The sale is without credit term.
d. The credit term has already expired.
28. Which of the following is not a ground for the exercise by the unpaid seller of right of resale?
a. The goods are of perishable nature.
b. The seller has expressly reserved the right to resell the goods in case the buyer should make default.
c. The buyer has been in default for an unreasonable time.
d. The goods are sold without credit term.
29. S sold a specific lot with an area of 100 SQM to B at a selling price of P2,000 per SQM. Upon delivery,
the actual area of the lot is only 90 SQM. What legal remedy is available to B?
a. Accept the 90SQM lot and pay P180,000 only.
b. Ask for cancellation of the contract of sale.
c. Either A or B
d. Neither A nor B
30. S sold a specific lot with an area of 100SQM to B at a lump sum price of P200,000 bounded by a
concrete fence. S was able to deliver the area within the fence although the actual area measured 95SQM
only. Which is correct?
a. B may ask for proportionate reduction of price and pay P190,000 only.
b. B may ask for the cancellation of the contract of sale.
c. B is still required to pay the lump sum price of P200,000.
d. B may ask for annulment of the contract of sale.
31. In case of a specific movable property is sold by the same buyer to two or more different buyers, who
shall have better right among the buyers?
a. First possessor the movable property in good faith
b. First registrant of the deed of sale in good faith
c. First buyer who fully paid the price in good faith
d. Buyer with the oldest title in good faith
32. In case of a specific titled immovable property is sold by the same buyer to two or more different
buyers, who shall have better right among the buyers?
a. First possessor the movable property in good faith
b. First registrant of the deed of sale in good faith
c. First buyer who fully paid the price in good faith
d. Buyer with the oldest title in good faith
33. It refers to the deprivation of the vendee of the whole or a part of the thing sold by virtue of a final judgment
based on a right prior to the sale or an act imputable to the vendor.
a. Servitude
b. Hidden defect
c. Eviction
d. Merchantability
Page 4 of 13
34. It refers to a type of waiver of warranty against eviction made by the buyer with the knowledge of risk
of eviction, thereby, fully exempting the seller from eviction if he acted in good faith.
a. Waiver consciente
b. Waiver intentionada
c. Waiver discreta
d. Waiver armada
35. What is the prescriptive period of breach of warranty against unregistered and nonapparent burden,
encumbrance or servitude in contract of sale of immovable?
a. 6 months from the execution of deed of sale or discovery of encumbrance or burden
b. 40 days from the execution of deed of sale or discovery of encumbrance or burden
c. 1 year from the execution of deed of sale or discovery of encumbrance or burden
d. 3 days from the execution of deed of sale or discovery of encumbrance or burden
36. This is one of the two remedies of the vendee in case of breach of warranties against hidden defects, of
merchantability, of merchantable quality or fitness for a particular purpose. It refers to the withdrawal
from the contract of sale or rescission of contract of sale.
a. Accion quanti minoris
b. Accion redhibitoria
c. Accion pauliana
d. Accion subrogatoria
37. Which of the following statements concerning the vendor's liability for hidden defect on the thing sold is correct?
a. The seller is liable for hidden defect only if he was aware of the defect.
b. The seller is liable for hidden defect only if the reason of the loss of the thing sold is the hidden defect.
c. The seller not liable for hidden defect if there is stipulation exempting him from liability for hidden defect
and he acted in bad faith.
d. The seller is liable for hidden defect regardless of the awareness of the hidden defect and regardless
of the reason of the loss of the thing sold.
38. What is the prescriptive period of the accion redhibitoria, accion quanti minoris or all other actions to enforce the
seller’s liability for hidden defect?
a. 1 year from the delivery of the thing sold
b. 1 month from the delivery of the thing sold
c. 6 months from the delivery of the thing sold
d. 3 months from the delivery of the thing sold
39. It refers to a defect in an animal and it is of such nature that expert knowledge, even after a professional
inspection has been made, is not sufficient to discover it.
a. Hidden defect
b. Apparent defect
c. Known defect
d. Redhibitory defect
41. Which of the following is not a requisite for the vendor to be liable in case the animal dies of disease?
a. The disease exists at the time of sale.
b. The disease is the cause of death of the animal.
c. The animal dies within 3 days from time of purchase.
d. The disease is redhibitory.
42. What is the status of the contract of sale when the animals are suffering from contagious diseases or
when the animals are found to be unfit for the use or service for which they were acquired as stated in
the contract?
a. Rescissible
b. Voidable
c. Unenforceable
d. Void
Page 5 of 13
43. S sold his specific land to B under pacto de retro sale. The deed of pacto de retro sale is silent as to the
period of right of redemption. What is the period of the conventional redemption by S?
a. Four years
b. Ten years
c. 30 days
d. One year
44. A, B and C are co-owners of a specific lot in equal shares. On January 5, 2020, A sold his share in the
co-owned lot to D under pacto de retro sale. On January 15, 2020, B sold also his share in the co-owned
lot to D under pacto de retro sale. On January 25, 2020, B sold also his share in the co-owned lot to D
under pacto de retro sale. Which is correct?
a. A may redeem his share in the co-owned lot.
b. B may be compelled by D to redeem the whole lot.
c. C cannot redeem his share in the co-owned.
d. D may compel A, B and C to come to an agreement to redeem the whole lot.
45. It refers to the right of adjoining urban land owner to be given the first opportunity to purchase a piece
of urban land about to be resold which is so small and so situated that a major portion thereof cannot be
used for any practical purpose within a reasonable time, having been bought merely for speculation.
a. Right of legal redemption
b. Right of legal pre-emption
c. Right of first refusal
d. Right of legal repurchase
46. A, B and C are co-owners of a 1,000 sqm specific farm lot in the ratio of 1:4:5. The said farm lot is
bounded by D's 200SQM farm lot in the south and E's farm 300SQM farm lot in the north. E's possible
use of C's share in the farm lot appears to be best justified. C sold his share in the farm lot to F, a
landlord. Who has the preferred right of redemption?
a. E for the whole 500 sqm
b. D for the whole 500 sqm
c. A and B for 100sqm and 400sqm respectively
d. D and E for 200sqm and 300sqm respectively
47. What is the period for the exercise of the right of legal redemption or legal pre-emption by the co-owner,
adjoining rural or urban land owner?
a. Within 30 days from the notice given by the prospective vendor or vendor.
b. Within 60 days from the notice given by the prospective vendor or vendor.
c. Within 90 days from the notice given by the prospective vendor or vendor.
d. Within 1 year from the notice given by the prospective vendor or vendor.
48. The following are the instances wherein a contract of sale with a right to repurchase and other contract purporting
to be an absolute sale shall be presumed to be an equitable mortgage, except
a. When the price of a sale with a right to repurchase is inadequate
b. When the vendor remains in possession as lessee or otherwise
c. When the purchaser retains for himself part of the purchase price
d. When the vendor binds himself to pay the real property taxes on the thing sold
49. It is a contract whereby a person transfers his credit, right or action against a third person to another
person for a consideration which is certain in money or its equivalent.
a. Contract of sale
b. Assignment of credits
c. Contract of exchange
d. Negotiation
Page 6 of 13
51. When an unlawful partnership is dissolved by a judicial decree, to whom shall the partnership profits
go?
a. To the innocent partner.
b. To the guilty partner.
c. To all the partners pro-rata.
d. To the state.
52. What is the effect if a contract of partnership with a capital of at least P3,000 in cash or movable
property is not in a notarized document and is not registered with SEC?
a. The contract of partnership is null and void.
b. The partners are liable solidarily and directly to partnership creditors.
c. The partners are liable jointly up to the extent of their capital contribution for partnership's liabilities.
d. The liability of the partnership and the partners thereof to third persons will not be affected.
53. The following cases on their own do not necessarily establish a partnership, except
a. Persons who are not partners to each other.
b. Co-ownership or co-possession, whether such co-owners or co-possessors do or do not share any profits
made by the use of the property.
c. Sharing of gross returns, whether or not the persons sharing them have a joint or common right or interest
in any property from which the returns are derived.
d. Receipt by a person of a share of the profits of a business by virtue of return of investment.
54. The articles of universal partnership is entered into without specification as to its nature. What shall be
its construction or interpretation?
a. It is a particular partnership.
b. It is a universal partnership of all present property.
c. It is a universal partnership of profits.
d. It is a general professional partnership.
55. It is a partnership where all the partners are liable up to the extent of their separate property after the
partnership assets have been exhausted for partnership's liabilities.
a. General partnership
b. Limited partnership
c. De jure partnership
d. De facto partnership
56. It is a partnership where no period or no specific purpose is fixed by the parties for its duration.
a. Partnership at will
b. Partnership with a fixed term
c. Partnership for a particular undertaking
d. Partnership by prescription
57. He is a partner who contributed not only money and property but also services, labor or industry.
a. Capitalist partner
b. Industrial partner
c. Capitalist industrial partner
d. Nominal partner
58. He is a partner who is active in management of partnership business and known to the public as a
partner, such as by allowing his name to be included in the firm name.
a. Ostensible partner
b. Secret partner
c. Silent partner
d. Dormant partner
59. He is a person admitted to all the rights of a limited partner who has died or has assigned his interest in a
partnership.
a. Assignee of limited partner
b. Substituted limited partner
c. Newly admitted partner
d. Quasi-partner
Page 7 of 13
60. Which of the following statements is incorrect as to distribution of partnership profits to the partners of
the partnership?
a. Profit shall be distributed in accordance with the valid profit agreement of the partners.
b. In the absence of profit agreement, profit shall be distributed on the basis of loss agreement
of the partners.
c. In the absence of profit agreement, the industrial partners shall receive just and equitable share in
the partnership profits.
d. In the absence of profit agreement, the capitalist partners shall receive in accordance with their
capital contribution ratio after distribution to the industrial partners of their just and equitable
share.
e. In the absence of profit agreement, the capitalist industrial partners shall receive just and
equitable share as industrial partners and then share on the remaining profits in accordance with
their capital contribution ratio as capitalist partners.
61. Which of the following statements is incorrect as to distribution of partnership losses to the partners of
the partnership?
a. Loss shall be distributed in accordance with the valid loss agreement of the partners.
b. In the absence of loss, the industrial partners shall receive just and equitable share in the
partnership loss.
c. In the absence of loss agreement, only the capitalist partners shall divide the loss in accordance
with their profit agreement ratio.
d. In the absence of loss agreement, the capitalist industrial partners shall share in the loss only in
accordance with the profit agreement ratio in his character as a capitalist partner but exempted as
an industrial partner.
62. Which of the following stipulations in the sharing of partnership profit or losses is valid?
a. A stipulation excluding a capitalist partner in the share of profits.
b. A stipulation excluding a capitalist partner in the share of losses.
c. A stipulation excluding an industrial partner in the share of profits.
d. A stipulation excluding an industrial partner in the share of losses.
63. What is the prescriptive period for a partner to file an action to impugn or question the manifestly
inequitable sharing of partnership profits or losses designated by a third person?
a. Within 3 months from the knowledge of such designation but it must be before the said partner
executes it.
b. Within 2 months from the knowledge of such designation but it must be before the said partner executes
it.
c. Within 1 month from the knowledge of such designation but it must be before the said partner executes it.
d. Within 6 months from the knowledge of such designation but it must be before the said partner executes
it.
64. Which managing partner may be validly removed by the controlling partner even without valid or just
cause?
a. Managing partner appointed in the Articles of Co-Partnership
b. Managing partner appointed in a document other than Articles of Co-Partnership
c. Both A and B
d. Neither A nor B
65. When the manner of management has not been agreed upon, the following are the rules of partnership
management to be observed, except
a. All the partners shall be considered agents of the partnership or all of them are considered managers.
b. Whatever any of the partners may do alone particularly acts of administration shall bind the partnership.
c. In case of opposition of the other partners, the decision of the majority shall prevail and the decision of
the partners owning the controlling interest shall prevail in case of tie.
d. Any of the partners may make any important alteration in the immovable property of the
partnership without the consent of the others if it may be useful to the partnership.
66. Which of the following partners is not allowed to participate in the management of a partnership?
a. Capitalist partner
b. Industrial partner
c. Nominal partner
d. Managing partner
Page 8 of 13
67. Which of the following decisions regarding partnership affairs may be validly done by the managing
partner alone?
a. Disposition of the goodwill of the business
b. Confession of judgment
c. Renunciation of a claim of the partnership
d. Approval of compensation scheme of employees
68. Which of the following statements is true as regards to the right of industrial partner to engage in
another business?
a. An industrial partner is only prohibited to engage in a business of the same kind but not to business of
different kind.
b. An industrial partner cannot engage in any business for himself, unless the partnership expressly
permits him to do so.
c. An industrial partner may engage in business of different kind for himself, unless the partnership
expressly prohibits him to do so.
d. An industrial partner may engage in a business of the same kind for himself, unless the partnership
expressly prohibits him to do so.
69. Which of the following statements is true as regards to the right of capitalist partner to engage in another
business?
a. The capitalist partner cannot engage in any kind of business without permission of the other partners.
b. The capitalist partner can only engage in a business of different kind if there is stipulation allowing him to
do so.
c. The capitalist partner can engage in a business of the same kind even without stipulation allowing him to
do so.
d. The capitalist partner can engage in a business of different kind even without stipulation allowing
him to do so and in a business of the same kind if there is a stipulation allowing him to do so.
70. A, B and C are partners in TEN General Partnership. A and B are capitalist partners while C is an
industrial partner. After exhaustion of partnership assets, partnership liabilities amounting to P30,000
remained unpaid. From whom may the partnership creditors collect?
a. C only
b. A, B and C
c. A and B only
d. None of the partners
71. A, B, C and D are partners in FIX General Partnership. A, B and C are capitalist partners while D is an
industrial partner. The Articles of Co-Partnership provides that C is exempted from liability of the
partnership to third persons. After exhaustion of partnership assets, partnership liabilities amounting to
P60,000 remained unpaid. Who ultimately shoulder the unpaid partnership's liabilities?
a. A and B only
b. A, B and D only
c. A, B, C and D
d. None of the partners
72. A, B and C are partners in ABC Parking General Partnership. D deposited his car to the parking lot of
the partnership for a fee while A is managing the parking lot. After seeing D's parked car, B borrowed
the said car. Unfortunately, the car was crushed by an accident. Who will be liable for the value of the
car to D?
a. ABC Partnership only
b. ABC Partnership or B only
c. ABC Partnership or A or B or C
d. ABC Partnership or A or B only
73. A, B and C are partners in AB Ltd. Partnership. A and B are general partners while C is an industrial
partner. After exhaustion of partnership assets, partnership liabilities amounting to P30,000 remained
unpaid. From whom may the partnership creditors collect?
a. C only
b. A, B and C
c. A and B only
d. None of the partners
Page 9 of 13
74. A, B, C, D, E and F are partners in ABC Ltd. Partnership. A, B and F are general capitalist partners
while E is an industrial partner. The Articles of Co-Partnership provides that F is exempted from
liability of the partnership to third persons. C and D are limited partners but D is appointed as managing
partner. Who ultimately shoulder the unpaid partnership's liabilities?
a. A and B only
b. A, B, E and F only
c. A, B and F only
d. A, B, C, D, E and F
75. A and B are general partners in AB Partnership with outstanding liabilities of P6,000 before the
admission of C. C is admitted to the existing partnership of A and B. After several years of operation,
the total liabilities of the partnership increased to P12,000 while the total assets of the partnership are
fully exhausted. How much may the unpaid creditor of the partnership validly collect from C?
a. P2,000
b. P3,000
c. P4,000
d. P6,000
76. Which partner is not liable up to the extent of his separate assets for payment of partnership debts?
a. Industrial partner
b. Limited partner
c. Managing partner
d. General partner
77. Which partner is not required to contribute additional share of capital to the partnership to save the
venture in case of imminent loss of the business of the partnership?
a. Limited partner
b. Capitalist partner
c. Industrial partner
d. Capitalist industrial partner
78. The partnership shall bear the risk of loss for the following contributions of partners, except
a. Fungible things or those that cannot be kept without deteriorating.
b. Things contributed to the partnership to be sold.
c. Things brought and appraised in the inventory of partnership unless there is a stipulation to the contrary
but the amount of partnership obligation will be limited to the value at which they were appraised.
d. Specific and determinate things owned by a partner which are not fungible, contributed to the
partnership so that only their use and fruits may be for the common benefit such as property
brought by partners in case of universal partnership of profits.
79. What is the effect if a partner associates or assigns/conveys his share or interest in the partnership to
another person?
a. The associate or assignee becomes a partner of the partnership even without the consent of the other
partners.
b. The associate or assignee becomes a partner of the partnership if the assigning partner is a managing
partner even without the consent of the other partners.
c. The partnership is dissolved by the assignment of the said interest to third persons.
d. The associate or assignee does not become a partner but shall be entitled only to the share of the
assigning partner in the partnership profits and net assets at the date of liquidation.
80. D has two outstanding and matured obligations to ABC Partnership and A, managing partner of ABC
Partnership in the amount of P4,000 and P1,000, respectively. D paid P1,000 to A who issued his
personal receipt. How shall the P1,000 be applied to the credits?
a. P1,000 to A's credit only
b. P1,000 to ABC Partnership's credit only
c. P800 to ABC Partnership and P200 to A's credit
d. P500 to ABC Partnership and P500 to A's credit
Page 10 of 13
81. Using the same data in the preceding number but assuming A issued the receipt of the partnership, how
shall the P1,000 be applied to the credits?
a. P1,000 to A's credit only
b. P1,000 to ABC Partnership's credit only
c. P800 to ABC Partnership and P200 to A's credit
d. P500 to ABC Partnership and P500 to A's credit
82. D has two outstanding and matured obligations to ABC Partnership and B, a non-managing partner of
ABC Partnership in the amount of P4,000 and P1,000, respectively. D paid P1,000 to B who issued his
personal receipt. How shall the P1,000 be applied to the credits?
a. P1,000 to B's credit only
b. P1,000 to ABC Partnership's credit only
c. P800 to ABC Partnership and P200 to B's credit
d. P500 to ABC Partnership and P500 to B's credit
83. Which of the following assets shall be used first for the payment of partnership’s liabilities?
a. Partnership’s property
b. Partner’s separate property
c. Partner’s conjugal or community property
d. Partner’s exclusive property
84. It refers the change in the relation of the partners caused by any partner ceasing to be associated in the
carrying on of the business.
a. Partnership dissolution
b. Partnership liquidation
c. Partnership formation
d. Partnership termination
86. Which of the following will not automatically dissolve a general partnership?
a. Civil interdiction of a partner
b. Insanity of a partner
c. Death of a partner
d. Insolvency of a partner
87. Which of the following credits shall be settled last in a general partnership?
a. Those owing to the creditors other than the partners
b. Those owing to partners other than for capital and profits
c. Those owing to partners with respect to capital contribution
d. Those owing to partners with respect to profit share
88. Which of the following credits shall be settled last in a general partnership?
a. Those owing to the limited partners
b. Those owing to the general partners other than for capital and profits
c. Those owing to the general partners with respect to profit share
d. Those owing to the general partners with respect to capital contribution
Page 11 of 13
90. Which of the following may not be contributed by a pure limited partner?
a. Cash
b. Personal property
c. Real property
d. Services, industry or labor
92. Which of the following has no right to inspect the partnership books?
a. Nominal partner
b. Silent partner
c. Secret partner
d. Dormant partner
95. Which of the following partners may be validly removed by virtue of provisions of Civil Code for engaging in
another business without the permission of the other partners?
a. Managing partner
b. Industrial partner
c. Capitalist partner
d. Silent partner
96. How is a contract of partnership wherein the contribution involves personal property with value of at least P3,000
perfected?
a. By mere consent
b. By delivery of the contribution
c. By notarization of the articles of co-partnership
d. By registration of the notarized articles of co-partnership to SEC
97. Which of the following causes is an automatic ground for dissolution of general partnership?
a. Insolvency of the partnership
b. The partnership can be carried only at a loss.
c. Incapability of a partner to perform his duty due to sickness
d. Persistent violation of the articles of co-partnership
98. In the absence of stipulation to the contrary, when shall the juridical personality of the partnership begin?
a. From the moment the partners have completed their contributions.
b. From the moment of the execution of the contract of partnership.
c. From the moment of submission with the SEC of the Articles of Co-Partnership.
d. From the moment the SEC issues the Certificate of Registration
99. If no one is appointed as managing partner, who shall be considered the administrator of the partnership?
a. The oldest partner
b. The partner with the largest capital contribution
c. The industrial partner
d. All the partners
100. In case more than one partner is appointed as managing partners, how shall act of management be settled
in case of objection by any of the managing partners?
a. The decision of majority of the managing partners shall prevail.
b. The decision of the controlling partners shall prevail.
c. The decision of the controlling managing partners shall prevail.
d. The decision of the oldest partner shall prevail.
Page 12 of 13
Page 13 of 13