1.

All creditors shall furnish to each person to whom credit is extended, prior to the consummation of the transaction, a
clear statement in writing setting forth the following information, except:
a) the cash price or delivered price of the property or service to be acquired;
b) the amounts, if any, to be credited as down payment and/or trade-in;
 c) the charges, individually itemized, which are paid or to be paid by such person in connection with the
transaction but which are not incident to the extension of credit;
d) none of the choices
2. A businessman who owns a bus company with a fleet of a 50 buses sold 48 buses to B. Can be B file a case for
annulment of the contract due to violation of the bulk sales law?
a. Yes b. No c. Yes, but on other groundsd. None of the choices
3. In the above case what is the status of B?
a. Owner b. Trustee c. Depositary d. None of the choices
4. A & B borrowed the car of C which they would return after two weeks. What is the liability of A & B?
a. Joint b. Solidary c. Solidary creditor d. None of the choices
5. A parked his car in the parking lot of the hotel of B. The hotel is guarded by C security agency on the wall of the
parking lot a notice is written “The Hotel is not liable for any damage or lost of your vehicle” the car of A was
carnapped, who is liable?
a. A b. B c. Security Agency d. None of the choices
6. The carnapper in the above question was arrested and it turned out that he is an employee of the Hotel. Who
should be held liable for the lost of A’s car?
a. A     b. B c. Security Agency d. None of the choices
7.  In all transactions or contracts involving the sale or financing of real estate on installment payments, including
residential condominium apartments, where the buyer has paid at least two years of installments, the buyer is entitled to
the rights in case he defaults in the payment of succeeding installments:
a) To pay, without additional interest, the unpaid installments due within the total grace period earned by him
which is hereby fixed at the rate of one month grace period for every one year of installment payments made: 
b) If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments on the
property equivalent to fifty per cent of the total payments made, and, after five years of installments, an
additional five per cent every year but not to exceed ninety per cent of the total payments made: 
c)  to have the down payments, deposits or options on the contract be included in the computation of the total
number of installment payments made
d) all of the above.
8. The depositor of a foreign currency is entitled to:
a) Tax exemption. 
  b) Secrecy of foreign currency deposits
  c) Deposit insurance coverage
d) all of the choices
9. D borrowed P100,000.00 from C. To secure the debt, D mortgaged his land and building in favor of C. The
mortgage is registered with the Register of Property.  Sometime later, D sold the land and building to X who was
not aware of the mortgage if the land and building. Based on the above information, which of the following the
statements is false?
a. X must respect the mortgage although he was not a party thereto.
b. X was not bound by the mortgage because he was not aware of it.
c. If C foreclose the mortgage and the proceeds of the foreclosure sale are not enough to pay for the debt, C can
recover the deficiency from D.
d. If C foreclose the mortgage and the proceeds of the foreclose sale exceed the amount of debt, D is entitled to the
excess.
10. The alternative rights of the an unpaid seller if the buyer default by two or more installments under the recto law
are, except:
a) Demand payment
b) Cancel the sale
c) right of lien
d) Foreclose the mortgage
11. The following acts are punishable under BP 22 except:
a) Check is dishonored by the drawee bank for insufficiency of funds 
b) Check is dishonored by the drawee bank due to account closed
c) Check is dishonored by the drawee bank due to stop payment 
d) all of the above 
12. The following are certain modes of acquisition of property except:
 a. Purchase 
b. Dacion en pago
c. Succession 
d. Mutuum 
13. A sale between husband and wife is valid in which of the following case?
a. When a separation of property has been upon in the marriage settlements or when there has been a judicial
separation of property
b. When price of the sale is a moderate amount.
c. When object of the sale is a necessary such as food or clothing.
c. When the spouses are living separately.
14.. The term “intellectual property rights” consists of, except:
a) Copyright and Related Rights;
b) Trademarks and Service Marks;
c) Geographic Indications;
d) None of the choices
15. . The following are thrift bank except:
a) Rural bank
b) Savings and mortgage banks
c) Stock savings and loan associations
d) Private development banks
16. Indorsement made by person not otherwise a party to the instrument . therein his signature in blank before
delivery 
a. Blank b. facultative c. Spoliation d. irregular
17. The alteration of receipts shall not excuse the warehouseman who issued it, except:
a) Immaterial
b) Material
c) Authorized
d) Made without fraudulent intent
18.  In an obligation to give a determine thing, what rights are available to the creditor?
First Answer – To compel specific performance
Second Answer – To recover damages in case of breach of the obligation
Third Answer – To ask that the obligation be complied with at the expense of the debtor.
a. All answers are correct c. Only the first answer is correct
b. Only the first and second answers are correct d. All answer are wrong
19. The following contracts, except one, are void ab initio. Which is the exception?
a. That whose object is outside the commerce of men
b. That whose object did not exist 
c. That which contemplates an impossible service
d. That which is undertaken in fraud of creditors
20. S, minor, owns a specific property valued at P50,000. B capacitated, by means of fraud induced S to sell his
property to him for P30,000, which S did so. The contract is in writing. Which is correct?   
a. The contract is valid and binding from the start
b. The correct remains unenforceable because it fall under the Statute of Frauds
c. The contract is rescissible because the ward suffered lesion by more than ¼ of the value
d. The contract is voidable and B can ask for annulment within the period prescribed by law
21.  Legal compensation is allowed when one of the debts
a. Arises from a sale of real property made by a minor to a capacitated person
b. Arises from the obligation of a depositary
c. Consists in civil liability arising from a penal offense
d. Arises from a claim for support by gratuitous title
22. This is not a characteristics of a void or inexistent contract.
a. The right to arise a defense of illegality cannot be waived
b. The action or defense for declaration of the nullity or inexistence of the contract does not prescribe 
c. Not subject to ratification 
d. Defense of illegality of the contract is available to third persons whose interest are not directly affected 
23. ABC limited Partnership engaged in an airline business would like to get the services of D the best pilot
in the Philippines. D is willing to contribute his services to the partnership would admit him as a limited
partner. Can ABC partnership admit D as a limited partner? 
a. No b) Yes c) yes it is best for the airline d) none of the choices  
 24. It was agreed between partners, the partnerships creditor and the continuing partner that the managing
partner be discharge from his liability in the partnership. Is the agreement valid?
a.  Yes if he is a limited partner b) no c) yes  d) none of the choices  
25. An outside creditor, remain unpaid after exhaustion of the assets of the partnership. May he collect
from the estate of a dead partner of the partnership? Explain
a.  No. because the partner is already dead b) Yes if the heirs will allow c) yes  d) none of the choices. 
26. A corporation that has juridical personality before the issuance of the certification from SEC.   
a. Educational Corp. c. Religious Society
b. Corporation Sole                                 d. Closed Corp.
27. It is the signification of the drawee to his assent to the order of the drawer
a. Trade acceptance b. Banker’s acceptance c. acceptance  d. acceptance for honor
28. A Fraud in the execution is a: 
a .Real defense b. personal defense c. material defense d. none of the choices
29. Assumes liability as a regular party without the right of excusion.
a. Guarantor b. legal pledge c. Judicial bondsman d. Surety
30. A pledge his car to C for a loan of P 50,000.00. A failed to pay the loan may C appropriate the car of A for
himself? 
a. No because A has the right of redemption b. no  because it is prohibited by law c. yes d. none of the choices
31.   A Hotel keeper put a notice in the garage of the Hotel that “THE HOTEL IS NOT LIABLE FOR ANY
DAMAGE TO YOUR VEHICLE” armed men came shot the hotel guard and took the car of a guest. Is the Hotel
liable for the lost vehicle?
a. No because there is a warning  b. no c. yes d. none of the choices
32.    A barrowed P1M from B to be paid from the harvest of A’s orchard.  What contract is in the problem?
a. mortgage  b. pledge  c.  mutuum  d. antichresis
33. In the mortgage contract A was not allowed to sell his mortgaged property. A sold the said property is the sale
valid? 
a.  No because there is a prohibition  b. no because it is illegal  c. yes d. none of the choices
        34. It is the right of the mortgagor to redeem the property that was mortgaged after it was sold.
   a. Equity of redemption b. Right of redemption  c. Right of subrogation d. Right of pre-emption
         35. A chattel mortgage may have the following as object, except: 
a. motor vehicles b. shares of stocks c. vessels d. warehouse
36. This refers to the right of a person to retain a thing until he receives payment of his claim in the cases
provided by law such as one who has executed work on a movable.
a. Conventional pledge b. Voluntary pledge c. Legal pledge d. Chattel Mortgage.
37. The following may be the object of pledge, except:
a. All movables b. Bills of lading c. Shares of stock d. Parcels of land.
38. Which of the following is not a type of cooperative?
a. Producer b. retailer c. serviced. none of the choices
39. Can a foreigner buy a condominium unit?
a. Yes as long a he has the money b. No because it is illegal c. yes, but only in a condominium
Corp. d none of the choices
40. A is a parking attendant earning P200 a day. He deposited P200,000.00 in your bank . Is the deposit a suspicious
transaction under AMLA?
a.No, because it is less than P500,000  b. yes c. No d. none of the choices