Tarlac State University

College of Business and Accountancy

RFBT Review 1

Instructions: Read and select the best answer for the following questions. Write the letter corresponding to your
answer on a separate document and send that document to MS Forms.

1. It is the voluntary administration of the property of another without his consent.

a. Negotiorum Gestio
b. Solutio Indebiti
c. Mora Solvendi
d. Mora Accipiendi
2. The creditor has a right that is enforceable against a definite passive subject. This right is known as:
a. Personal right
b. Real right
c. Natural right
d. Civil right
3. Demand must be made on the due date of the obligation in order for delay to exist in one of the following cases.
Which is it?
a. When it was stipulated by the parties that demand need not be made.
b. When the law provides that demand need not be made.
c. When the obligation does not indicate whether demand must be made or not in due date.
d. When time is of the essence of the contract.
4. Dionisio borrowed P50,000 from Carmello. Carmello dies before he has collected the debt leaving Sarah, his
daughter, as heir. Which of the following statements is correct?
a. Sarah can collect from Dionisio although Dionisio and Carmello did not agree that the credit right will pass
on to the heirs of Carmello.
b. Sarah cannot collect because the credit right is personal to Carmello
c. Sarah can collect only if Dionisio and Carmello agreed that the credit right will pass on to the heirs of
Carmello.
d. Sarah cannot collect because the law prohibits the transmission of the credit right.
5. Lea obtained a loan from Lani on the amount of Php10,000. Lea promised to pay the said loan of Php10,000.00
to Lani as soon as possible. Two yearhad elapsed but the loan is still unpaid. The remedy available to Lani is:
a. To file an action against Lea.
b. To demand payment for damages
c. To attach the property of Lea.
d. To petition to the court to fix the period.
6. Among the essential elements of an obligation, which are considered the personal elements?
a. Obligee and Obligor
b. Prestation and Vinculum
c. Obligee and Vinculum
d. Prestation and Obligor
7. The following are the requisites of a prestation or an object of an obligation, except
a. It must be possible, physically and juridically.
b. It must be determinate, or at least, determinable according to pre-established elements or criteria.
c. It must have possible equivalent in money.
d. It must be a positive obligation only.
8. The obligation of the parents to provide support to their children arises from
a. Law
b. Contracts
c. Quasi-Contracts
d. Quasi-delicts

9. Which of the following statements concerning obligations arising from contracts are correct?
I. Obligations arising from contracts have the force of law between the contracting parties.
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II. Obligations arising from contracts should be complied with in good faith.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
10. An oral contract of sale of a computer worth Php 20,000.00 between Seller, a minor and B, an insane person.
The computer has been delivered and the price has been paid.
a. Valid and enforceable
b. Rescissible
c. Voidable
d. Unenforceable
e. Void
11. An oral sale of a lot worth Php 50,000.00 between seller and buyer. Seller has not delivered the lot, but buyer
has given a down payment of Php 5,000.00.
a. Valid and enforceable
b. Rescissible
c. Voidable
d. Unenforceable
e. Void
12. A certificate of bank deposit entered into between Depositor and bank. Depositor has really no deposit in the
bank but the bank made it appear that depositor had a deposit so that depositor could use the certificate of
bank deposit to apply for a visa at a foreign embassy.
a. Valid and enforceable
b. Rescissible
c. Voidable
d. Unenforceable
e. Void
13. Statement I: A contract entered into in the name of another without authority is unenforceable against the
latter.
Statement II: An offer made through an agent is accepted from the time acceptance is communicated to the
principal by the agent.
a. True; True
b. True; False
c. False; True
d. False; False
14. One of the following is not a requisite of the object of a contract of sale. Which is it?
a. The object must be within the commerce of men.
b. The vendor must have the right to transfer the ownership of the thing at the time of sale.
c. The vendor must assure that the thing being sold must be licit.
d. It must be determinate or determinable.
15. Jose and his wife, Perla, opened and maintained the following accounts with Allied Bank Recto. (a) Savings
deposit – P300,000; (b) Demand deposit – P400,000; (c) Time deposit - P350,000. They also have the same
deposits with the same amount in Allied Bank Makati. If Allied bank becomes insolvent the Philippine Deposit
Insurance Corporation will be bound to be liable to the spouses for its insurance liability equivalent to
a. Two deposits.
b. One deposit.
c. Six deposits.
d. Three deposits.
16. Which of the following is a proper defense against the application of the "short-swing" profit rule?
a. That the sale or purchase was not the result of information obtained by such owner, officer, director or
beneficial owner because of his or her position.
b. That one was no longer an officer at the time of either the sale or purchase of the securities.
c. That the same was not sold or purchased within the statutory three month period.
d. That the beneficial owner was not such both at the time of the purchase and the sale.

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17. Which among the following securities transactions require that the securities be registered in order to be
compliant with the Securities Regulation Code?
a. A sale of capital stock of a corporation to its own stockholders only where no fee is paid in connection with
the sale.
b. A bank selling its own securities.
c. An insurance company selling its own securities.
d. The transaction of a broker on the PSE pursuant to his client's orders.

18. The General Banking Law of 2000 applies –

a. To all types of banks in suppletory manner.
b. Only to banks which are not government owned or controlled.
c. To savings and mortgage banks, non-stock savings and loans associations, and private development banks.
d. To the operation of branches of foreign banks in the Philippines.

19. Which of the following negates a charge that an entity is engaged in banking business?
a. If it obtains funds only from qualified depositors.
b. If it invests, rather than lends, the funds obtained.
c. If at any given time, the number of depositors falls below twenty (20).
d. If it has not obtained the requisite authority to operate as such from the Bangko Sentral ng Pilipinas.

20. The distinction between deposits and deposit substitutes is material in determining –
a. Whether an entity accepting either one is subject to supervision by the BSP.
b. Whether a commercial bank that accepts both will need a separate license from the BSP.
c. What degree of diligence a bank is required to exercise in handling the same.
d. Whether a universal bank may use the same purposes of lending or relending, as the case may be.

21. A bank teller fails to observe the standard procedures of a bank in verifying the signature of the drawer of a
check and honors the same when presented for payment by a person who forged the signature of the drawer on
the check entrusted to him. What defense can a bank raise to negate or mitigate its liability to the drawer whose
signatures was forged.
a. The drawer is guilty of contributory negligence.
b. The act of the bank teller is unauthorized.

22. A bank is NOT liable for its failure to observe the degree of diligence as required by its fiduciary duty under Sec.
2 of the GBL of 2000.
a. If such failure was prior to the enactment of the GBL of 2000.
b. If no actual damage was suffered by the depositor.
c. If the transaction involves money market placements.
d. If there is a contractual stipulation between the bank and the depositor supported by valuable consideration
which lowers the degree of diligence required to be exercised by the bank to that of a good father of family.

23. A bank may be deemed as a mortgagee in good faith if it does not –

a. Ascertain the mortgagor’s title or ownership over the property mortgaged.
b. Ascertain the identity of the person borrowing the owner’s duplicate original title of property mortgaged
before allowing such person to borrow such title for photocopying purposes.
c. Check both the owner’s duplicate original title to the property mortgaged and the title thereof in the
registry of deeds.
d. Conduct an ocular inspection of the property, provided there is nothing in the title to the property which
would arouse suspicion and require an ocular inspection.

24. A universal bank and a commercial bank differ in terms of their power –
a. To invest in non-financial allied enterprises.
b. To create and accept demand deposits.
c. To act as investment house.
d. To perform quasi-banking functions.

25. Rural banks and cooperative banks essentially differ in terms of –

a. Purpose.
b. Powers.
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c. Governing law in matters other than organization, ownership, capital requirements, powers, supervision,
and general conduct of business.
d. Being authorized to create or accept demand deposits even without Monetary Board approval.

26. The distinction between the three modes of entry of foreign banks in the Philippines under the Foreign Banks
Liberalization Act is material in determining –
a. Whether or not a foreign bank may avail of more than one mode of entry.
b. Whether or not Monetary Board Approval is required for such entry.
c. Whether or not head office guarantee is required.
d. Whether or not the foreign bank shall perform the same functions enjoy the same privileges, and be subject
to the same limitations imposed upon a Philippine bank of the same category.

27. The head office of a foreign bank authorized to operate branches in the Philippines is sued in a Philippine court
by a payee of a check drawn by a depositor of the Philippine branch of such foreign bank which refused to honor
a check notwithstanding that funds were sufficient. What defense can the head office raise to avoid liability to
such payee?
a. Philippine courts have no jurisdiction over the head office of the foreign bank.
b. The head office of a foreign bank is not liable for the unauthorized acts of its Philippine branch.
c. The head office guarantee is applicable only to liabilities to depositors.
d. The bank is not liable to the payee for dishonor of checks.

28. That a deposit is in the nature of a loan –

a. Is inconsistent with the fiduciary duty imposed on banks in the handling thereof.
b. Means that the same may be classified as a preferred credit.
c. Means that the bank which has loaned the depositor money has a right to compensation if both loan
obligations are already due and demandable, even without prior consent of the depositor.
d. Means that in cases where banks are placed under receivership or liquidation, a depositor has no other
means to recover on his deposit except through such receivership and liquidation proceedings where he will
be treated as a creditor of the bank.

29. A time deposit differs from a demand deposit in that –

a. Numbered accounts are not allowed for time deposits, but are allowed for demand deposits.
b. Instruments issued pursuant to a time deposit are generally non-negotiable, while instruments issued
pursuant to a demand deposit are negotiable.
c. Funds in time deposit account earn interest, while funds in a demand deposit account cannot earn interest.
d. Funds in a time deposit account cannot be withdrawn at any time, while funds in a demand deposit account
can.

30. A bank dishonors a check drawn against an account with insufficient funds. Under which circumstances can the
bank be held liable for such dishonor?
a. If the depositor has another account in the bank with sufficient funds to cover the amount of the check
drawn but the bank did not apply such funds to cover said check.
b. If the bank did not notify the depositor that it had previously availed of its legal right to compensation and
applied the funds in the checking account in payment of depositor’s loan to the bank resulting in the
insufficiency of the funds to cover the amount of the check drawn.
c. If before dishonoring the check, the bank did not notify the depositor that his funds are insufficient to cover
the amount of the check drawn as to give him an opportunity to deposit sufficient funds.
d. If the bank does not allow the depositor to deposit the funds needed to cover the check drawn within a
reasonable time after presentment in order to avoid dishonor of said check.

31. X and Y were to marry in 3 months. Meantime, to express his affection, X donated a house and lot to Y, which
donation X wrote in a letter to Y. Y wrote back, accepting the donation and took possession of the property.
Before the wedding, however, Y suddenly died of heart attack. Can Y’s heirs get the property?
a. No, since the marriage did not take place.
b. Yes, since all the requisites of a donation of an immovable are present.
c. No, since the donation and its acceptance are not in a public instrument.
d. Yes, since X freely donated the property to Y who became its owner.

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32. Contracts take effect only between the parties or their assigns and heirs, except where the rights and
obligations arising from the contract are not transmissible by their nature, by stipulation, or by provision of law.
In the latter case, the assigns or the heirs are not bound by the contracts. This is known as the principle of
a. Relativity of contracts
b. Mutuality of contracts
c. Freedom to stipulate
d. Obligatory force of contracts

33. As security for a loan, Sonia mortgaged his house and lot to Belinda. Both parties intended to enter a mortgage
contract but the instrument as written states that the house and lot is sold by Sonia to Belinda with right of
repurchase. In this case, the proper remedy is:
a. Annulment
b. Reformation
c. Rescission
d. Reconstitution

34. Which is the correct order of application of the rules in connection with solution of problems involving
innominate contracts?
a. The provisions of the Civil Code; then stipulation of the parties; then provisions of the most analogous
nominate contract and lastly custom or usage of the place.
b. Custom or usage of the place; then stipulation of the parties; then the provisions of Civil Code and lastly
provision of the most analogous nominate contract.
c. The stipulation of the parties; then the provisions of the Civil Code; then the provisions of the most analogous
nominate contract and lastly the custom or usage of the place.
d. The provisions of the most analogous nominate contract; then the stipulation of the parties; then the
provisions of the Civil Code and lastly the custom or usage of the place.

35. Alexis and Bote entered into a universal partnership of all present property. No stipulation was made regarding
other properties. Subsequently, Alexis received a parcel of land by inheritance from his father; and another
parcel of land from “The Best Ito University” as remuneration for Alexis work as professor therein.
a. The two parcel of land and their fruits are to be enjoyed by the partnership because the contract entered is a
universal partnership of all present property.
b. The two parcel of land and their fruits will not be enjoyed by the partnership because there is no stipulation
regarding future properties or their fruits.
c. The partnership is entitled only to the fruits but not to the two parcel of land.
d. The partnership is entitled to use the two parcel of land as usufructuary and also entitled to the fruits
produced by the property.

36. Which of the following right cannot be exercise by an assignee of interest:

A. To get whatever profits the assignor partner would have obtained
B. To avail himself of the usual remedies in case of fraud in the management.
C. To demand information, accounting and inspection of the partnership books
D. The right to participate in the management
a. All of the above c. B, C and D
b. Only C d. C and D

37. A and B are partners in buying and selling automobiles. A, by the partner’s agreement, was authorized to buy
automobiles on a cash basis, never on the installment plan. One day A bought on credit or on installment plan a
car from X, a client. X did not know of A’s lack of authority. A’s purchase was made on behalf and in the name of
the partnership. Is the partnership bound?

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a. No because A was not really authorized to bought on installment plan.
b. No because acquisition of automobiles requires the consent of all partners.
c. Yes because although A was not really authorized, still for “apparently carrying on in the usual way the
business of the partnership” A is implicitly authorized and X did not know of A’s lack of authority.
d. Yes because all transaction made by any partners with third person is valid provided the latter acted in good
faith.

38. X Corp. operates a call center that received orders for pizzas on behalf of Y Corp. which operates a chain of pizza
restaurants. The two companies have the same set of corporate officers. After 2 years, X Corp. dismissed its call
agents for no apparent reason. The agents filed a collective suit for illegal dismissal against both X Corp. and Y
Corp. based on the doctrine of piercing the veil of corporate fiction. The latter set up the defense that the agents
are in the employ of X Corp. which is a separate juridical entity. Is this defense appropriate?
a. No, since the doctrine would apply, the two companies having the same set of corporate officers.
b. No, the real employer is Y Corp., the pizza company, with X Corp. serving as an arm for receiving its outside
orders for pizzas.
c. Yes, it is not shown that one company completely dominates the finances, policies, and business practices of
the other.
d. Yes, since the two companies perform two distinct businesses.

39. A is obliged to deliver to B one of his three (3) cars.

a. The obligation is not valid because the object is not determined.
b. The obligation is valid because the object is determinable.
c. The obligation is valid. B can choose which one of the 3 cars.
d. The obligation is valid because there is consent between A and B.

40. When a debtor is in delay:

a. He is liable for damages
b. He is liable even for a fortuitous event
c. All of the above
d. None of the above

41. Mrs. Go sold and delivered her diamond ring to Mrs. Pat. It was agreed upon that after ten
(10) days Mrs. Pat will name and fix the price. On the tenth (10 th) day, Mrs. Pat called up by
telephone Mrs. Go and stated the price at P10,000. Mrs. Go agreed. IS the sale perfected?
a. Yes, the price stated and named by one of the contracting parties was accepted by the other.
b. No, at the time of the sale the price was not fixed.
c. No, the price was left to the discretion of one of the parties
d. No, at the time of the sale the price is not known.

42. The buyer of a thing has the right to the fruits of the thing:
a. From the time the thing bought is delivered
b. From the time the sale is perfected.
c. From the time the obligation to deliver the thing bought arises.
d. From the time the fruits are delivered.

43. A offered to sell for P500,000 his house and lot to B who was interested in buying the same.
A gave B thirty days to raise the amount and as soon as B is ready they will sign the deed of
sale. On the 25th day, A notified B that he is no longer willing to sell the property unless the
price is increased to P550,000.

I. B can compel a to accept the P500,000 first offered because there exists a bilateral offer to sell and to buy a
definite property for a definite price.

II. B cannot compel A to accept the P500,000 because this is merely an unaccepted unilateral promise to sell.
a. First statement is true; second statement is false.
b. First statement is false; second statement is true.
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c. Both statements are true.
d. Both statements are false.

44. Duthirty bought a business class ticket from Alta Airlines. As she checked in, the manager downgraded her to
economy on the ground that a Congressman had to be accommodated in the business class. Duthirty suffered
the discomfort and embarrassment of the downgrade. She sued the airlines for quasi-delict but Alta Airlines
countered that, since her travel was governed by a contract between them, no quasi-delict could arise. Is the
airline correct?
a. No, the breach of contract may in fact be tortious as when it is tainted as in this case with arbitrariness, gross
bad faith, and malice.
b. No, denying Duthirty the comfort and amenities of the business class as provided in the ticket is a tortious act.
c. Yes, since the facts 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.

45. X is a depositor of AAA Bank. She has three (3) deposit accounts all under her name. One, in checking account,
one in saving account and another one in time deposit account. Each account has a balance of Php250,000. AAA
Bank became insolvent. Philippine Deposit Insurance Corporation closed the Bank. X therefore is unable to
withdraw from all of the accounts. She then filed her claims with the Philippine Deposit Insurance Corporation.
Which statement is most accurate?
a. X can claim a total of Php500,000 for all the three (3) accounts.
b. X can only claim from one (1) account of Php250,000.
c. X can claim a total of Php750,000 from all the three (3) accounts.
d. X cannot claim anything from any of the deposit accounts.

46. What is republic act 10168

a. The Terrorism Financing Prevention and Suppression Act of 2012
b. Data Privacy Act of 2012
c. Amendments to the Anti-Money Laundering Act of 2001
d. The Tax Reform for Acceleration and Inclusion Act

47. The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit records of an individual
without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.

48. The infringer is liable to the following:

I. An injunction for such infringement
II. Pay actual, moral and exemplary damages
III. Deliver for impounding of the articles alleged to infringe a copyright
IV. Deliver for destruction all copies, devices and other means used for making the infringing copies
Which of the statements above are TRUE:
a. Statement 1
b. Statement 2
c. Statement 3
d. Statement 4
e. All of the above

49. Noe Q. invented a gas-saving device, manufactured and sold it to the market without securing a patent. San
Miguel Co., a rich and well-known company, bought one gadget, dismantled the device and studied it. In due
time, the company is manufacturing a gas-saving device similar to the invention of Noe Q.. Before offering it for
sale, the company secured a patent. Below are the actions and defenses available for Noe Q.. Which of the
following statements are correct?
I. Noe Q. should first bring an action for the cancellation of the patent illegally secured by San Miguel
Company and on the said proceedings, he must prove that he invented the device.

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II. Noe Q., being the inventor of the gadget, is the owner of an intellectual creation and is entitled to legal
protection of said property right from the unauthorized use of the same by another person or entity.
III. While the cancellation proceedings are pending, Noe Q. may ask the court for preliminary injunction to
prevent San Miguel from manufacturing more gadgets.
IV. San Miguel Co. has a better right over the invention because they secured a patent before selling the
device.
a. Statements I and II are correct.
b. Statements I and III are correct
c. Statement IV is correct
d. Statements I, II and III are correct

50. The Maynilad Hotel chain reproduces DVD’s, distributes the copies thereof to its hotels and makes them
available to hotel guests for viewing in the hotel guest rooms and charges a separate fee for the use of the DVD
players. Is Maynilad Hotel liable for infringement?
a. No, the DVD viewing is done privately in the hotel guest rooms.
b. Yes, because the reproduction of the DVD’s violates the copyright or economic rights of the owner of the
film. The hotel charge fees for the use of DVD player as well as there are room charges, they earn gain from
the use of the DVD because it entices the guests to check-in in their hotel.
c. No, the DVD viewing is part of the hotel services and it is the use of the DVD players that is charged and not
the cost of the DVD.
d. None of the above

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