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MULTIPLE CHOICE QUESTIONS IN CIVIL LAW REVIEW 2 PARTNERSHIP BY MR. JOHN LEONOR 51.

It is defined as two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves:

a. b. c. d.

Contract of Agency Contract of Sale Contract of Partnership Contract of insurance

52. A contact of partnership is void when:

a. b. c. d.

If it is not recorded in the SEC If it is not in a public instrument If there is no inventory of the personal property If the object of the contract is unlawful

53. Joe and Rudy formed a partnership to operate a car repair shop in QuezonCity. Joe provided the capital while Rudy contributed his labor and industry.On one side of their shop, Joe opened and operated a coffee shop, while onthe other side, Rudy put up a car accessories store. May they engage in suchseparate businesses?

a. Joe, the capitalist partner, may engage in the restaurant business because itis not the same kind of business the partnership is engaged in. On the otherhand, Rudy may not engage in any other business unless their partnershipexpressly permits him to do so because as an industrial partner he has todevote his full time to the business of the partnership. b. Both Joe and Rudy may engage in any other business unless their partnershipexpressly permits him to do so because as an industrial partner he has todevote his full time to the business of the partnership c. Neither Joe nor Rudy may not engage in any other business unless their partnershipexpressly permits him to do so because as an industrial partner he has todevote his full time to the business of the partnership

d. Joe, the industrial partner, may engage in the restaurant business because itis not the same kind of business the partnership is engaged in. On the otherhand, Rudy may not engage in any other business unless their partnershipexpressly permits him to do so because as an industrial partner he has todevote his full time to the business of the partnership 5 4 . W , X , Y a n d Z o r g a n i z e d a g e n e r a l p a r t n e r s h i p wi t h W a n d X a s i n d u s t r i a l partners and Y and Z as capitalist partners. Y contributed P50,000.00 and Zcontributed P20,000.00 to the common fund. By a unanimous vote of thep a r t n e r s , W a n d X w e r e a p p o i n t e d m a n a g i n g p a r t n e r s , w i t h o u t a n y specification of their respective powers and duties.A a p p l i e d f o r t h e p o s i t i o n o f S e c r e t a r y a n d B a p p l i e d f o r t h e p o si t i o n o f Accountant of the partnership. The hiring of A was decided upon by W and X, but was opposed by Y and Z. The hiring of B was decided upon by W and Z, but was opposed by X and Y.W ho of the applicants should be hired by the partnership?

a. The hiring of A prevails because it is an act of administration which can beperformed by the duly appointed managing partners, W and X.B cannot be hired, because in case of a tie in the decision of the managingp a r t n e r s , t h e d e a d l o c k m u s t b e d e c i d e d b y t h e p a r t n e r s o w n i n g t h e controlling interest. In this case, the opposition of X and Y prevails because Yowns the controlling Interest b. The hiring of B prevails because it is an act of administration which can beperformed by the duly appointed managing partners, W and X. c. Neither A nor B cannot be hired, because in case of a tie in the decision of the managingp a r t n e r s , t h e d e a d l o c k m u s t b e d e c i d e d b y t h e p a r t n e r s o w n i n g t h e controlling interest. In this case, the opposition of X and Y prevails because Yowns the controlling Interest d. Both A andB can be hired, because in case of a tie in the decision of the managingp a r t n e r s , the deadlock must be d e c i d e d b y t h e p a r t n e r s o w n i n g t h e controlling interest. In this case, the opposition of X and Y prevails because Yowns the controlling Interest 55. The property rights of a partner are the following except: a. His rights in specific partnership property; b. His interest in the partnership; and c. His right to participate in the management.

d. His right to interfere to the rights of other partners. AGENCY BY MR. JOHN MICHAEL TIPON

56. Mario and Nova entered into a contract whereby it was agreed that the latter shall administer and manage certain haciendas belonging to the former. In the contract, it was stipulated that Nova shall have the power to contract the service of farmers to work in the fields, that can fix their compensation, and that he can make improvements on the property. What contract was perfected in this case? a. b. c. d. Contract of Employment Contract of Agency Contract of Agency to Sell Contract of Lease of Services.

57. Which of the following statements are correct? I. II. III. IV. a. b. c. d. The principle of representation is applied in the contract of agency. The contract of agency is a principal contract If a third person is not injured through the fault or negligence of an agent , he can proceed against the principal Agency is classified as express and written according to constitution

Statement I is correct Both statements I and II are correct Statements III and IV are correct All statements are correct

58. Which of the following is an act of administration? a. Lease of personal property b. A judgment of compromise entered into by an attorney without the authority from the client c. Agents rendition of services to the principal gratuitously d. Agents act of selling the printing establishment of his principal 59. Kay sold the property of Kenneth at a price below Kenneths instructions. Is Kay liable for conversion of the property? a. Yes, because the conversion is not in accordance with the instructions of Kenneth. b. No, because the disobedience pertains only to the price and to the conversion of the property

c. No, because the disobedience is not considered an unlawful interference of Kenneths property resulted in conversion. d. Yes, because this is an unauthorized dominion over Kenneths property 60. Ken Albert sold a large parcel of land in Davao to Kristel for P100 Million payable in instalments over a period of 10 years, but title will remain with Ken Albert until the purchase price is paid. To enable Kristel to pay the price, Ken Albert gave her a power of attorney authorizing her to subdivide the land, sell the individual lots, and deliver the proceeds to Ken Albert, to be applied to the purchase price. Seven (7) years later, Ken Albert revoked the power of attorney and took over the sale of the subdivision lots himself. Is the revocation valid? a. It is not valid because it is not yet the means of fulfilling an obligation already contracted. b. It is not valid because the power of attorney is revocable at will. c. It is valid because it is within the power of the principal to revoke the contract d. It is not valid because the power of attorney given to the buyer is irrevocable on the ground that this is an agency coupled with an interest LOAN COMMODATUM BY MR. WILLIAM MAMANTEO JR.

61. When is the contract of loan perfected? a) b) c) d) it is perfected from the moment the parties consented it is perfected only upon the delivery of the object of the contract it is perfected at the time of the signing of the contract it is perfected at the time of the release of the loan

62. A contract by virtue of which one of the contracting parties delivers to the other a non-consumable (non-fungible) thing so that the latter may use the same for a certain time and return it. a) b) c) d) commodatum simple loan or mutuum lease deposit

63. In a contract of commodatum, the bailee is liable for the loss of the thing, even if it should be through a fortuitous event, EXCEPT: a) If he devotes the thing to any purpose different from that for which it has been loaned

b) If he keeps it longer than the period stipulated or after the accomplishment of the use for which the commodatum has been constituted c) If the thing loaned has been delivered with appraisal of its value however there is a stipulation exempting the beilee from liability in case of fortuitous event d) If he lends or leases the thing to a third person, who is not a member of his household

64. A borrowed Bs truck. During a fire which broke out in As garage, he had time to save only vehicle and he saved his car instead of the truck. Is he liable for the loss of Bs truck? a) No, A is not liable for the loss of Bs truck. b) Yes, A is liable for the loss of Bs truck because what was perfected was a contract of commodatum. c) No, A is not liable for the loss of Bs truck because the loss was through a fortuitous event d) Yes, A is liable but only to the half of the value of the truck.

65. In a claim for insurance resulting from the loss of things due to fire, what is the amount of interest to be imposed? a) 6 % (Country Bankers Insurance Corporation vs. Lianga Bay and Community Multi-Purpose Cooperative Inc,. G.R. No. 136914, Jan. 25, 2002) b) 8 % c) 10 % d) 12 % SIMPLE LOAN MUTUUM BY MS. EDNA LUNA

MCQS Assignment Mutuum (Simple Loan) 66. Define and distinguish from each other, commodatum and mutuum (simple loan). From below are sentences which pertain to its comparison. Choose the statement which does not conform:

a. As to object: In the first, the object is, as a general rule, a non-consumable (non-fungible) thing, whereas in the second, the object is money or any consumable (fungible) thing. b. As to cause: The first is essentially gratuitous, whereas the second may be gratuitous.

c. As to purpose: The first is a loan for use, whereas the second is a loan for consumption.

d. As to transmission of ownership: In the first, the bailor retains the ownership of the thing loaned, whereas in the second ownership passes to the debtor.

67. Distinguish between mutuum and lease. Choose the statement which is not correct.

a. In simple loan, the thing loaned becomes the property of the debtor, whereas in lease the owner loses his right of ownership.

b. In simple loan, the object is money or any consumable (fungible) thing, whereas in lease, the object may be anything whether movable or immovable, fungible or non-fungible.

c. In simple loan, the relationship which is created is that of creditor and debtor, whereas in lease, the relationship that is created is that of landlord and tenant for lessor and lessee.

68. Loans distinguish from Deposits. Choose the statement which is not correct.

a. In loan generally, the borrower pays only at the end of the period. In deposit, the return of deposited thing can be demanded by the depositor.

b. As to purpose: The loan is being use by the borrower. However, in deposit the safekeeping of depository is the only act he can do (who generally cannot use the thing deposited).

c. Relationship in simple loan is that of a lender (creditor) and borrower or debtor while in deposits relationship is that of depositor and depositary.

d. There can be no compensation of credits. Compensation of things deposited with each other (except by mutual agreement).

69. Distinction between Mutuum and Commodatum. Choose the statement which is not correct.

a. In mutuum, equivalent amount to be return subject is fungible while in commodatum , same thing is to be returned (subject matter is non-fungible).

b. In mutuum, it is gratuitous or onerous (with interest) while commodatum is essentially gratuitous.

c. In mutuum, the object is personal property only while in commudatum the object may involve real and personal property.

d. Mutuum is personal in character and commodatum is not personal in character. 70. Felipe borrowed from Juan P2,000.00 on November 30, 1990. The contract is not evidence by any writing. It was, however, verbally agreed that the former shall pay the obligation after the expiration of 2 years and that the rate of interest shall be 21% per annum. On November 30, 1992, when the obligation became due and demandable, Juan demanded from Felipe for the payment of the obligation plus accumulated interests. Felipe did not pay 2 years later, on November 30, 1994, Juan filed a complaint against Felipe for the recovery of the amount of P2,000.00 plus interest at 21% per annum to be computed from November 30, 1990. Will the action prosper? Reason.

a. Yes, with respect to both principal and interest b. No, with respect to both principal and interest c. Yes, with respect to principal because payment of interest must be in writing d. Yes, with respect to interest only

DEPOSIT BY MR. RUSTICO DE VERA 71. A depositary is obliged to a. b. c. d. Keep the things safely and return it when required Upon judicial order to return the thing Upon legal demand to return the thing to the heirs as in succession To keep the thing & preserve it as a good father

72. A deposit is necessary when a. It takes place in the occession of fire, storm, flood, pillage and shipwreck, etc b. When necessary for the hotel operations c. When required to protect the hotel guests property d. In compliance to an outstanding obligation 73. Judicial deposit is a. Sequestration when attachment in litigation is ordered. b. A sequestration in the nature of custodia legis c. A mere deposit in the nature of preliminary attachment

d. Applies only to real property for pending cases 74. A hotel keeper is not liable for a. None of the above b. Cars stolen c. Animals d. Jewelry stolen when placed in the vault as advised e. Injury to guests

75. The depository is liable a. Despite force majeureon losses of the thing b. To the owner even if the thing was not declared corrosive or nuclear c. If the property is owned by a third person with proof d. If armed men enter the hotel with irresistible force to rob form the guests