CPAR | CPA Review School of the Philippines FIRST PRE-BOAR’ a Regulatory Fram. D EXAMINATION | Saturday, February 10, 2018 work for Business Transactions | 10:30AM to 12:30PM Instructions: | ons:Choos the BEST answer for each of the following items, Mark only one answer for each item on \e Special Answer Sheet provided. Strictly no erasure allowed. i 1 a granteda Joan to B amounting to Php 660,000 with 6% interest per annum. Such agreement was not reduced ‘ing but B paid the obligation and interest in cash and checks when A demanded payment. Which of the following is correct? a. The payment of loan and interest is valid b. The payment of loan and interest is void ¢. Becan demand the return of the amount representing the interest paid 4d. The principle of solution inéebiti is applicable, hence B can recover the amount paid to A 2. Itis an intentional evasion of the faithful performance of the obligation a. Negligence b. Fraud ¢. Delay d. Mistake 3. It isa principle which holds that contracts must be binding to both parties and its validity and effectivity cannot be left to the will of one of the contracting parties | a. Obligatory force of contracts c. Autonomy of contracts b. Mutuality of contracts d. Relativity of contracts 4. A,B and C solidarily owe W and Y. solidary creditors Php 24,000, where the share of the debtors is [Link] while the creditors is 1:2. The terms of the contract provide: 1. A will pay if Y will pass the May 2014 CPA Board Exams 2. Bwill pay on June 10, ' 3. C will pay on January 1 On January 15, 2014, W can collect from a A=Php 24,000 b. B= Php 12,000 ‘payment is entitled to get reimbursement from €.C=Php 12,0004. A or B= Php 12,000 ¢.C=Php 24,000 d. C= Php 8,000 5. Using the above data, the debtor who effected a, B=Php 12,000 b. A= Php 12.000 n collect from 6. Assuming ¥ passed the May 2014 CPA Board Exams, ¥ 1p 12,000 d. A or B or C= Php 12,000 a. AorC=Php 16,800 b.B=Php 4,800 c. A= Phy 7. On January 15,2014, A obliged himself to give to B his ‘only cow or his only dog or his only cat on December 25, 2014. On July 4, 2014, the cow died after giving birth to a young cow. Two months later, the cat died due to the fault of A. And on November 1, 2014, the dog died que to a fortuitous event. Which of the following is true? | ‘The obligation of A is extinguished | Bis entitled to the young cow having been bor) after the perfection ofthe contract Ais liable for the vaiue of the cat plus damages B can require A to replace the cat by another cat which is equally satisfactory epg 8. Using the above data, but the right of choice belongs to B, which of the following is correct? a. The obligation of A is extinguished b. Bis entitied to the young cow having been horn after the perfection of the contract c. Ais liable for the vaiue of thr cat plus damages d. Bean require A to replace the cat by another cat which is equally satisfactory 9. Using the preceding number, except thar ihe dog ig sill alive, which of the following is not correct? a. The obligation of A is converted to 2 sitaple abligation b. Bean require A to deliver the dog bur withost damages ¢. Aisnot lieble for the deati of the cow d. Ban require A to pay the value of the cat is damages10, When the condition has been imposed with the intention of suspending the efficacy of an obligation to give, the following rules shall be observed, except a. If the thing is lost, the obligation shall be extinguished | b. Ifthe thing is improved by nature, the improvement shall inure to the benefit of the creditor c. Ifthe thing is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary ; d. Ifthe thing deteriorates without the fault of the debtor, the impairment is to be bome by the creditor 11. The expenses of consignation, when properly made shall be charged against a. The debtor c. Both the debtor and creditor b. The creditor d. Neither the debtor nor creditor 12. Statement 1 — In expromission, the new debtor's insolvency or non-fulfiliment of the obligation shall not give rise to any liability on the part of the original debtor . Statement 2 - In delegacion, the insolvency of the new debtor, shall not revive the action of the creditor against the original debtor a True,true —b, True, false. False, true d. False, false 13. A, B, C and D are joint debtors of V, W, X, Y and Z, solidary creditors the sum of P20,000. Which is correct? a. V may collect from B, P20,000 c. V may collect from B P5,000 b. V may collect from B P4,000 d. Vinay collect from B P1,000 14. D owes C P6,000. No date for payment was stipulated by the parties. Which is correct? a. C can require D to pay when the period arrives b. Ccan require D to pay at anytime c. Dis not liable to C because the obligation is void there being no date of payment d. Dis not required to pay unless C goes to court and asks the court to require D to pay 15. In January 2010, S, 17 years old, sold his only car to B, 21 years old. The sale was withoui the knowledge of G, the guardian of S. Assuming that an annulment case is filed today, which is correct? a. S may bring the action for annulment b. G may bring the action for annulment c. B may bring the action for annulment d. Annulment will not prosper whoever will file i 16. The following items, pertain to a contract of sale, which pertains to contract to sell? a. Ownership of the thing sold is transferred upon delivery b. Ownership of the thing is transferred to the buyer at some future time ¢. The risk of loss is on the buyer upon delivery d. The risk of loss is on the buyer if the price is not yet fully paid 17. On August 1, 2013, A agreed to sell his only cow to B end B agreed to pay the price of P20,000, if B will pass the October 2013 CPA Examination. The list of successful examinees was released on October 19, 2013 and B is one of those who passed the examination. As a vesuli, ‘a. Ais entitled to the P20,000 price plus interest beginning August 1, 2013 b. Bis entitled to the cow and its fruits beginning October 19, 2013 ¢. Bis entitled to the cow beginning August 1, 2013 and to its fruits beginning October 19, 2013 d. A shall deliver the fruits of the cow and B shall pay the interest on the price beginning August 1, 2013 ic debtors of C for P100,000 which is cue on August 1, 2014. Thinking that the obligation 6 ‘ See Fen C P100,000 on August 1, 2015. What rights will have on February 1, 2014? aA can recover P50,000 reimiursemvent from B ithcut interest F Arcan recover P100,000 from C plus interest fron: August | 2013 to February 1, 2014 ie Gan recover P50,000 reimbursement from B with interest from August 1, 2013 to February 1, 2014 FA cannot recover yet from either B because the obligation. is not yet due or C because the payment was voluntary19. Using the preceding num! & A can recover fro: b. @ 4. B. 5 z 3 8 a E 8 20..A, B and C ard obli which of the lipo 8 specific cow to W and ¥ on August 1, 2014, If today is August 1, 2014, & A demdn | | | awa anes aa ty iY Seainst A, B and C constitutes a valid demand against all debtors 2 If debtor A cane an, sgt A will make the debtors in delay | monetary oblige ge will his share in the obligation, the obligation of B and C is converted into re ua 10n to pay the corresponding portion of the value of the tow without damages | i insolvent, the obligation of A, B and C is converted into @ monetary obligation to pay value of the cow plus damages 21. A 3s indebted to solidary creditors W, ¥ and Z for P90,000 due on August 1, 2014, while W owes A P90,000 so due on August 1, 2014. On August 1, 2014, a. Both obligations are extinguished by compensation b. A's obligation is extinguished up to P30,000 ¢. Either ¥ or Z can demand P60,000 from A 4. Bither Yor Zan demand P90,000 from W 22. Which of the following contracts of sale is void? Where the buyer and seller are both insane Where the husband aimed his gun to his wife so that his wife will sell her land to him Where the buyer twisted the arm of the seller so that the seller will sign the deed of sale ‘Where the object of the contract has a redhibitory defect f 23. Which of the following contracts is void? ° | a, A minor selling the ring of her mother without authority from her mother b. A widow selling the land of her father with an oral authority from her father c. A guardian selling for P70,000 the necklace of her ward where the fair market value of the necklace is P100,000 1 | 4. A contjact of sale between two deaf-mutes who both don’t know how to write pege 24. A contract of sale between husband and wife is a. Void, if there is separation of property in the marriage settlement b. Valid, when there is judicial separation of property ¢. Voidable, if they are under the absolute community of property d. Resceissble, if they are under the conjugal partnership of gains 25. A sold his necklace to B in a public instrument and later orally sold his watch to C. Both items will be delivered 7 days later. On the 5" day, A again sold the same necklace to D and the same watch to E. Both D and E immediately took physical possession of the necklace and watch, respectively and both are not aware of the previous sale to B and C. Who will have a better right to the necklace and watch? a BandC [Link] —c, Band E Cand D | 26. Which of the following statements is not}. correct? a. IFA gives his ring to B but it is not clear whether A donated it or merely lent it, the contract should be interpreted as commodatum rather than donation b. IA sells his car to B but A has 4 cars and it cannot be determined which car was sold, the contract of sale is vdid ¢. A borrowed P100,000 from B which bears interest at 12% per year but there is doubt whether it is payable in 2 or 3 years, the period of payment shall be interpreted at 2 years d, A engagéd the services of B but the contract did not indicate the amount of compensation to be paid, the amount thereof shall be the rate that is customarily paid in the place where the services were rendered