RFLIB Reviewer: 1–15 (Multiple Choice Questions)
1. The Civil Code defines an obligation as:
A. A juridical necessity to give, to do, or not to do
B. A legal promise to act
C. A natural obligation enforceable in court
D. A mere moral duty
2. Which of the following is not a requisite of a valid contract?
A. Consent
B. Object certain
C. Cause or consideration
D. Written form
3. A contract is voidable when:
A. It lacks one of the essential requisites
B. One party is incapable of giving consent
C. The object is outside the commerce of man
D. The cause is illicit
4. Under the Corporation Code, the minimum number of incorporators is:
A. 1
B. 2
C. 5
D. 15
5. A partnership where a person contributes money or property but does not
take part in management is:
A. General partnership
B. Limited partnership
C. Universal partnership
D. Partnership by estoppel
6. Which of the following negotiable instruments is payable to order?
A. "Pay to Juan Cruz or order ₱10,000"
B. "Pay to bearer ₱10,000"
C. "Pay to cash ₱10,000"
D. "Pay to the Treasurer ₱10,000"
7. Which of the following is not a real right?
A. Ownership
B. Lease
C. Mortgage
D. Easement
8. Which of the following is not a ground for involuntary dissolution of a
corporation by the SEC?
A. Failure to file annual reports for 5 years
B. Continuous inoperation for at least 5 years
C. Expiration of corporate term
D. Gross mismanagement
9. In pledge, the creditor:
A. Acquires ownership of the thing pledged
B. Has possession but not ownership
C. May use the thing pledged without permission
D. May sell the thing pledged without default
10.Under the law on sales, risk of loss passes to the buyer:
A. Upon perfection of the contract
B. Upon delivery
C. Upon payment
D. Upon inspection of goods
11.Which of the following is not a requisite of a negotiable instrument under NIL?
A. Unconditional promise or order to pay
B. Payable on demand or at a fixed determinable future time
C. Payable to order or bearer
D. Consideration must be stated
12.A contract of adhesion is:
A. One drafted by one party, the other merely adheres to it
B. Void per se
C. Always unconscionable
D. Bilateral contract without negotiations
13.A corporation has juridical personality:
A. Upon filing of Articles of Incorporation
B. Upon issuance of Certificate of Incorporation
C. Upon notarization of Articles of Incorporation
D. Upon payment of capital subscription
14.Which of the following is not a mode of extinguishing an obligation?
A. Payment or performance
B. Novation
C. Condonation or remission
D. Ratification
15.The law governing partnerships and corporations in the Philippines are
primarily found in:
A. Civil Code and Corporation Code
B. Civil Code and Labor Code
C. Corporation Code and Negotiable Instruments Law
D. Civil Code and Tax Code
