1. F made a unilateral promise to sell to Mr. G a parcel of land at a price of Php 2,500,000. Mr.

G paid P20,000 in
consideration of such promise in the condition that Mr. F will not sell the land to others for 60 days. Which of the following
is correct.

There is a perfected contract of sale since all the essential elements are present
There is a perfected contract of sale only if the P20,000 does not form part of the purchase price.
There is no perfected contract of sale because the P20,000 paid is an option money.
None of the above.

2. F made a unilateral promise to sell to Mr. G a parcel of land at a price of P2,500,000. Mr. G padi P20,000 in
consideration of such promise in the condition that Mr. F will not sell the land to others for sixty days. Which of the
following is correct?

F may withdraw the offer to sell to Mr. G anytime since there is no perfected contract of sale.
F may not withdraw the offer to sell to Mr. G before the lapse of the 60 days since there is already a perfected contract
of sale.
F may not withdraw the offer to sell to Mr. G before the lapse of the 60 days since the period is founded upon a
consideration.
F may not withdraw the offer to sell to Mr. G even after the lapse of 60 days since the promise is founded upon a
consideration.

3. Statement 1: A contract of sale is separate and distinct from a contract of option.

Statement 2: A contract of option presupposes the existence of a perfected contract of sale.

Only Statement 1 is true.

Only Statement 2 is true
Both are true
Both are false

4. The consummation of a contract of sale occurs when:

There is a concurrence between offer and acceptance

There is an agreement as to the price certain and the object of sale
The parties perform their respective undertakings
The parties negotiate the price and the object of sale.

5. Which of the following is a valid contract of sale?

Sale of animals suffering from contagious diseases

Sale of spousal rights
Sale of future inheritance
Sale of condominium units to aliens

6. As a general rule, sale of mere hope or expectancy is:

Valid only if the thing comes into existence

Void
Voidable
Valid in any instance

7. Joe, a farmer, entered into a contract of sale with Ms. Rox, a rice miller in January 2024. They agreed that Mr. Joe will
sell his harvest to Ms. Rox. Mr. Joe expects to harvest the rice in August. Is the contract valid?

Yes, the contract of sale will be perfected upon harvest in August.

Yes, the contract of sale has an object considering that the rice has a potential existence.
Yes, but the contract of sale may be unilaterally rescinded by the parties before August.
No, the contract of sale is not valid because the object does not exist at the time of the sale.
8. Sale of fake lottery is:

Valid
Void
Voidable
Unenforceable

9. Joe is a defendant in a civil case where Rox is the plaintiff who is seeking the recovery of P1,000,000. Rox prayed for
the provisional remedy of preliminary attachment over Joe’s truck to satisfy any favorable judgment to Rox. A few days
before the hearing, Joe sold the car to a third person. What is the status of the sale?

Perfectly valid
Void since the thing is under litigation
Valid but rescissible
Valid because the third person is in good faith.

10. Statement 1: As a general rule, inadequacy of price does not affect a contract of sale’s validity
Statement 2: When no price is agreed upon, the sale is voidable.

Only I is true
Only II is true
Both are true
Booth are false

11. Which of the following is a characteristic of earnest money.

It is given when a sale is not yet perfected

It is given to show a contract of sale is perfected
When given, the would be buyer is not required to buy the object
It is separate and distinct from the purchase price

12. A contract of sale is not:

Consensual contract
Commutative contract
Unilateral contract
Nominate contract

13. Joe and marc entered into a contract where Joe sold his car to Marc on installment basis for P1,000,000 payable
quarterly for three years. The contract of sale was perfected on November 1, 2020, and the car was delivered on January
1, 2021. The first quarterly payment was made on January 1, 2021. The ownership of the vehicle remained with Joe.
The ownership will transfer to Marc only upon payment of half of the installments. However, just three installments after,
the car was lost through a storm. In the absence of any stipulation in the contract of sale, is Marc required to pay the
remaining installments?

Yes, because the contract of sale has already been perfected.

Yes, because delivery of the car has already been made and possession is with marc.
No, because notwithstanding the delivery of the car, ownership remained with Joe.
No, because it was lost while Marc was in default of payment.

14. Marc is the owner of a pawnshop. Jose bought a cellphone in Marc’s store. Rox, whose phone was recently stolen in
Centermall, saw Joe’s cellphone and determined it to be hers. Who has the right to the cellphone?

Rox, because her phone was stolen from her

Jose, because he bought it from a merchant’s store.
Rox, because she has all the evidence to prve that it is hers, such as receipts, invoices, warranties, etc.
Jose, because he purchased it for value.
15. Jisoo entered into a contract of sale with Lisa involving a laptop currently owned by Rose. They signed the document
evidencing the contract on January 1, 2021, when Rose was still the owner of the laptop. On January 15, of the same
year, Rose donated the laptop to Jisoo. A week after, Jisoo delivered the laptop to Lisa, and Lisa paid the price in
accordance with the contract of sale. What is the status of sale as to validity?

The object is inexistent at the time of the contract of sale.

The contact was entered into without Rose’s authority.
The contract was entered into with a defect in Rose’s consent.
Jisoo was able to consummate the sale upon delivery.

16. Statement 1: There can be transfer of ownership without delivery if there is a stipulation provided for such in the
contract of sale.
Statement 2: In order to transfer ownership, delivery must always be actual and physical.

Only I is true
Only II is true
Both are true
Both are false

17. Rox entered int a sale of a car with Joe. The term of the sale prvided that Joe will give a downpayment of 50% of the
price and the remaining 50% will be paid a month after delivery. Rox was able to hand over the car to Joe. Which of the
following is true?

Joe is the owner of the car at the moment of perfection of the contract.
Joe is the owner of the car upon payment of the remaining 50%
Joe will be the owner of the car after it is handed over to him.
Joe will be the owner of the car upon giving the initial 50%

18. Danaya entered into a contract of sale with Pirena over a parcel of land with fruit bearing trees on August 1, 2021.
The price was paid by Pirena on September 1, 2021. The transfer of the title was made on october 1, 2021. Actual
occupation was made by pirena on November 1, 2021. Which of the following statements is true?

The fruits accruing from August 1, 2021 shall belong to Pirena.

The fruits accruing from September 1, 2021 shall belong to Pirena.
The fruits accruing from October 1, 2021 shall belong to pirena.
The fruits accruing from November 1, 2021, shall belong to Pirena.

19. The place of delivery should first be a the place stipulated, then:

Seller’s place of Business

Buyer’s place of Business
Seller’s residence
Usage of trade
I, III, and IV, in that order.
IV, I, and III, in that order.
II, I, and IV, in that order.
IV, II, and I in that order

20. Under a sale on approval or trial

delivery irrevocable transfers ownership to the buyer.

Delivery does not transfer ownership to the buyer but will only be transferred when the buyer signifies his approval
or acceptance to the seller.
Delivery transfers ownership to the buyer but ownership is deemed to revert to the seller when the buyer signifies his
dissaproval or non acceptance to the seller.
Delivery transfers ownership to the buyer but ownership is deemed to revert to the seller when the buyer returns the
thing sold to the seller.

21. Joe and Rox entered into a contract on a “sale or return” basis over some gadgets. After delivery to Rox, the gadgets
were lsot die to a fortuitous event. Rox has not yet paid the purchase price. Who shall bear the loss?

Joe, because he is still the owner considering that it is a “sale or return”.

Rox, because upon delivery, she became the owner of the thing sold.
Joe, because the seller bears the risk of loss if due to a fortuitous event.
Rox, because Joe is an unpaid seller.

22. Statement 1: parties may agree when and on what conditions the ownership shall pass to the buyer other than by
mere delivery.
Statement 2: Delivery of keys of the place or depositary where the movable is stored or kept is not a mode of constructive
delivery.

Only I is true
Only II is true
Both are true
Both are false

23. It is the mode of delivery of movable property by mere consent or agreement of the parties.

Symbolic delivery
Traditio longa manu
Traditio brevi manu
Constitutum possessorium

24. Statement 1: Delivery to the carrier, as a general rule, is not delivery to the buyer
Statement 2: If the seller bears the expenses of transportation of the goods sold up to the FOB point, then the seller
assumes the risk of loss while the goods are in transit.

Only 1 is true
Only 2 is true
Both are true
Both are false

25. In this mode of delivery, the seller continues to be in possession of the property sold not as owner but in some other
capacity, like as a tenant or lessee.

Symbolic delivery
Traditio longa mani
Traditio brevi manu
Constitutum possessorium

26. A 1,000 sqm parcel of land located in Baguio is owned by Jose. Marc sold the land to jason under his own name on
December 1, 2021. Fifteen days after, Jose sold the land to Rox. Jason was the first to take possession of the land on
December 20, 2021. Who has better right over the land?

Jason because he is the first buyer.

Jason because he is the first to take possession in good faith.
Rox because she bought the land from the actual owner.
Rox because she is the most recent buyer.

27. Statement 1: If the seller delivers the goods which are less than what was contracted, the buyer can reject the goods
delivered.
Statement 2: if the seller delivers goods which are less than what was contracted, the buyer can accept and pay at the
contract rate.

Only 1 is true
Only 2 is true
Both are true
Both are false

28. When the seller exercises his right of redemption, the seller is bound to pay all of the following, except:

Price of the sale

Expenses of the contract
Necessary and useful expenses
None of the above

29. It is defined as a statement or representation made by the seller contemporaneously and as a part of the contract of
sale with regards to the character, quality, or title of the goods.

Representations
Conditions
Warranties
Specifications

30. Statement 1: A breach of warranty affects the validity of a contract of sale.

Statement 2: A warranty must be stipulated in order to bind the parties.

Only 1 is true
Only 2 is true
Both are true
Both are false

31. Dealer’s talk:

Is considered as a warranty
Is considered as a warranty only if relied upon by the buyer
Is considered as a warranty if made by an expert and relied upon by the buyer
Is considered as a warranty only if it appears on the instrument evidencing the sale, made by an expert and relied upon
by the buyer.

32. Joe is an expert in all things jewelry, and precious metals. He bought 100 kilograms of gold from Rox, a miner from
Itogon. Joe will be using it for his furnitures with gold plating. Unknown to both parties, the 100 kilograms of gold was
not pure gold. When it was melted and molded into the furniture, the poor quality of the gold did not satisfy Joe. Is Rox
liable for breach of warranty against hidden defects?

Yes, because the defect is not patent and visible

Yes, because the defect renders the thing unfit sold for the use for which it was intended
No, because the buyer in this example is an expert who should have known the defect
No, because the seller is not aware of the hidden fault or defect.

33. The kind of warrant that the goods are FIT for the general purpose for which the same are sold.

Warranty of merchantability
Warranty against redhibitory defects
Warranty of fitness
Warranty against hidden defect
34. Joe sold Rox 10 dogs. Which of the following will make Joe liable:

If the dogs die within 5 days of a disease that existed at the time of the sale
If the dogs die within 10 days of a disease that existed at the time of the sale
If the dogs die within 7 days of a disease that existed at the time of the sale
If the dogs die within 3 days of a disease that existed at the time of the sale

35. The warranty against redhibitory defect applies to:

Animals
Plants
Non-Living things
I only
I and II only
I and III only
I, II, and III

36. Which of the following sale is void?

Sale of animals through fairs or public auctions

Sale of animals suffering from contagious disease
Sale of livestock as condemned
Sale of livestock not for human consumption

37. Daenerys bought a parcel of land from Cersei. A month after settling on the said parcel of land, it became the subject
of a dispute, putting in issue Cersei’s and Daenery’s title over the land based on a sale that occurred prior to Daenery’s
purchase. Is Cersei liable for breach of warranty against eviction?

The right of the claimant existed prior to the sale of the land to Daenerys.
There is no eviction by final judgment.
Cersei is made co-defendant in the suit for eviction
There was no showing that the act that caused the eviction is an act imputable to Cersei.

38. In the event that the buyer was totally evicted from the real property he bought from the seller, the buyer can demand
from the seller the payment of:

Value of thing sold at the time of sale

Value of thing sold at the time of eviction
Value of thing sold at the time of foreclosure
Value of thing sold at time of payment of price by the buyer.

39. Rox sold a car to Jose. After a month of use, the said vehicle was being claimed by another person, Marc, who alleges
that he is the rightful owner thereof since he purchased it prior to Jose. Is Rox liable for a breach of warranty?

The right of the claimant exists prior to the sale to Jose

The eviction is not by final judgment
Yes, Rox can be made a co-defendant in the suit for eviction.
No, there is no showing that the act that caused the eviction is an act imputable to Rox.

40. Under the Recto law, if the seller chooses the foreclosure of chattel mortgage, then:

The seller shall have no further action to recover any unpaid balance.
The seller shall have no further action to recover any unpaid balance unless stipulated
The seller may recover any unpaid balance
The seller may recover any unpaid balance unless stipulated.
41. Before the remedy of cancellation of sale may be availed by the seller under Recto law, how many installments must
have not been paid by the vendee?

At least 1
At least 2
At least 3
None of the above.

42. Statement 1: Under the Recto law, if the seller has chosen the remedy of specific performance, then the seller can
still seek the remedy of rescission.
Statement 2: Under the Recto law, if the seller has chosen the remedy of specific performance, then the seller can still
seek the foreclosure of the chattel mortgage.

Only 1 is true
Only 2 is true
Both are true
Both are false

43. Which of the following is not covered by the Maceda law?

Sale of agricultural land

Sale of residential buildings
Sale of commercial buildings
Sale of townhouses

44. Under the Maceda law, the buyer who has paid at least (2) years of installment may avail of the grace period:

Once every 2 years

Once every 3 years
Once every 4 years
Once every 5 years

45. Under the Maceda law, if the buyer has paid less than two years of installments, the grace period is at least:

Thirty days
Sixty days
Ninety days
One hundred twenty days

46. During the grace period, the buyer can do any of the following acts, except:

Transfer his rights in a notarial instrument

Pay the unpaid balance with interest – should be without interest
Update his account
Pay in advance any installment

47. Rox bought a real property in installments. If rox has already been paying for atleast 8 years, she has the right of the
refund of cash surrender value amounting to?

50% of the total amount paid

60% of the total amount paid
70% of the total amount paid
None of the above.

48. On January 1, 2023, Honta Incorporated sold a brand new Honta Expansion, a four-wheeled road vehicle, to Mr. Cruz.
During 2023, Mr. Cruz was able to use the car for 5,000 kilometers. On February 1, 2024, Mr. Cruz discovered
nonconformity of the said vehicle to Honta’s standards. What legal remedies may be availed by Mr. Cruz against Honta
Incorporated?

Ask for replacement of the motor vehicle with a similar or comparable motor vehicle in terms of specifications and values,
subject to availability.
Ask for the return of the motor vehicle and request for the return of the purchase price plus the collateral charges
Either A or B
Neither A nor B

49. On January 1, 2023, APO Land Incorporated (APO) sold a residential house and lot to B at an installment price of
P2,400,000 payable in equal monthly instalments of P10,000 starting January 31, 2023. B religiously paid the monthly
instalments until December 31, 2023. Afterwards, he defaulted on the next monthly installment on January 31, 2024.
What is the grace period earned by B to pay the defaulted installment without additional interest?

One (1) month

Sixty (60) days
Thirty (30) days
Two (2) months

50. Which of the following stipulations in a contract of pledge is valid?

Stipulation allowing the pledgee to appropriate the thing pledged in case it is not sold in first and second public auctions.
Stipulation allowing the pledgee to be entitled to the excess in case the foreclosure sale results to excess.
Stipulation providing that the return of the thing pledged to the pledgor will extinguish the contract of pledge.
I only
I and II only
II only
I, II and III

51. Ramil borrowed 100,000 php from Raven. Upon receipt of the money, Ramil told Raven that he will pay him if his
means permit him to do so. What kind of obligation is this?

Conditional obligation
Obligation with a Period
Casual Obligation
Obligation with a Penal Clause

52. Reg borrowed 100,000 php from Cathy. Reg and Cathy agreed that Reg may comply with the obligation of paying by
choosing among three choices, by either delivering her horse named Marc, a car, or giving her expensive cellphone. What
kind obligation is this?

Facultative Obligation
Alternative Obligation
Obligation with a Period
Multiple Obligation

53. Reg borrowed 100,000 php from Cathy. Reg promised that she would pay Cathy 100,000 php but incase of her failure
to pay she will give her Car. What kind obligation is this?

Multiple Obligation
Alternative Obligation
Facultative Obligation
Conditional Obligation

54. Cathy engaged the services of Chronicle a renowned engineer to build her 2 story house. Cathy and Chronicle agreed
that Chronicle shall finish the house in 3 months. The Obligation contained a statement that IF Chronicle fails to finish the
house in the said period, he will liable to pay a Fine or Penalty in the amount of 1,000,000 php. What kind of obligation
is this?

Obligation with a Period

Conditional Obligation
Divisible Obligation
Obligation with a Penal Clause.

55. Dominic lent his car to Kristine for the latter to use until Dominic arrives from his trip abroad. They agreed that upon
the return of Dominic, Kristine must return the car. What kind of obligation is this?

Conditional Obligation subject to a Suspensive Condition

Conditional Obligation subject to a Resolutory Condition
Conditional Obligation subject to a Potestative Condition
Conditional Obligation subject to a Casual Condition

56. The fulfillment of the condition depends upon chance or upon the will of a third person

Impossible condition
Casual condition
Potestative condition
Mixed condition

57. The following are requisites before an Obligor can be considered in delay except:

There is Demand
There is Ordinary Delay
There is Failure to comply after demand
There is insolvency

58. It refers to all intentional or deliberate evasion of the normal fulfillment of an obligation.

Negligence
Delay
Fraud
Fortuitous event

59. It refers to events which are unforeseeable or those which are foreseeable but unavoidable.

Negligence
Delay
Fraud
Fortuitous event

60. It refers to the failure to comply with the obligation on time after a demand has been given.

Negligence
Delay
Fraud
Fortuitous event

61. It is the delay on the part of the Debtor to comply with the obligation.

Mora Accipiendi
Mora dela Tore
Mora Solvendi
Mora Silvendo
62. The following are examples of an obligation subject to a Potestative Condition except:

I will pay you if I want

I will pay you after I recover from Joe
I will pay you if Joe pays his debt to me
I will pay you if I sell the house that I live on

63. Which of the following is an obligation with a period.

I will pay you 100,000 pesos but I may give my car as a substitute
I will pay you 100,000 pesos if you graduate from college
I will pay you If my means permit me to do so
I will pay you if my brother gives me money

64. The debtor loses the right to make use of the period in the following instances except:

When after the obligation has been contracted, he becomes insolvent.

When he attempts to abscond
When he violates the undertaking, in consideration of which the creditor agreed to the period
When he is in delay

65. A period that has been agreed upon by the parties.

Legal period
Judicial period
Mutual period
Conventional period

66. An obligation which can be fulfilled in parts

Alternative obligation
Pure obligation
Divisible obligation
Indivisible obligation

67. Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of:

Both the creditor and debtor

The Creditor
The Debtor
A Third person

68. The following are sources of an obligation except:

Law
Contracts
Quasi delicts
None of the above

69. An obligation where the whole obligation is to be paid or fulfilled proportionately by the debtors or to be
proportionately demanded by the creditor.

Solidary Obligation
Alternative Obligation
Joint Obligation
Mixed Obligation
70. An obligation where each one of the debtors may fulfill the entire obligation or each one of the creditors may demand
full payment from each other.

Solidary Obligation
Alternative Obligation
Joint Obligation
Mixed Obligation

71. Kenneth and Micah entered into an agreement where Kenneth will construct Micah’s house. It was agreed that the
house must be finished by December 2020 and that if Kenneth fails to finish the house he will be liable to pay a Penalty
of 10,000,000 pesos. Which of the following statements is false.

The obligation is an obligation with a Penal Clause

If the Kenneth thinks he cannot finish the house on December 2020, he may choose to pay the penalty before
December 2020 and choose not to finish the house.
Kenneth cannot choose to pay the penalty instead of fulfilling the obligation.
Micah cannot demand the penalty and the finishing of the house at the same time.

72. Joe borrowed 100,000 from Xell. It was agreed that Joe may comply with the obligation by doing any of the 4 things,
to pay 100,000 , to give Xell a Horse, to give Xell a Car, or to give Xell a computer unit. The choice was given to Xell. The
Car was destroyed because of Joe’s fault. Which of the following is FALSE.

Xell may demand Joe for the price of the car.

Xell may demand Joe for any of the remaining choices.
Xell may demand the price of any of the choices.
Xell may demand damages.

73. Joe obliged himself to deliver 100 cavans of rice to Xell. However due to a fortuitous event, the 100 cavans of rice
was destroyed. Which of the following is TRUE

The obligation is already extinguished because of the Fortuitous event.

The obligation is already extinguished because the object is specific.
The obligation is not yet extinguished because the object is generic.
None of the above

74. A is obliged to deliver a Rolex watch to B on December 1, 2009.

Before December 1, 2009, A has to take care of the Seiko watch with the diligence of a good father of the family.
In case of loss of the Seiko watch by negligence of A, A is liable in damages.
A is not required to exercise the diligence of a good father of a family.
The obligation of A to B is not valid.

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

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

76. In an obligation to deliver a generic thing:

The debtor is not liable for fraud or delay or negligence in the performance of the obligation.
The debtor can choose which thing pertaining to the class to deliver.
The creditor has the right of choice.
Loss by fortuitous event extinguishes the obligation.

77. Statement 1. If the obligation does not fix a period, the court shall fix the period.
Statement 2. Once a period is fixed by the courts, the parties cannot change it.
True; False
False; True
Both statements are false.
Both statements are true.

78. Statement 1. In an alternative obligation either party may choose as to who has the right of choice.
Statement 2. If it is the creditor who has the right of choice, he loses his choice if all the prestations are alternatively lost
by fault of the debtor.

True; False
False; True
Both statements are true.
Both statements are false.

79. A and B by their joint act of negligence caused damage to X in the sum of P10,000.

The obligation is joint because A and B acted jointly.

The obligation is joint because there is plurality of debtors.
The obligation is solidary because the law so provides.
The obligation is solidary because either A or B is liable for the full amount.

80. A binds himself to pay B P1,000 on December 10, 2011.

If December 10 has elapsed but A has not paid B, A is in delay.

A shall be liable to pay B P1,000 plus legal interests.
If the P1,000 is lost by fortuitous event the obligation is extinguished.
A is not in delay unless B has made a demand.

81. Statement 1: Damage due to accident is an example of non-conformity

Statement 2: Damage due to neglect of the owner is an example of non conformity

Only Statement I is true

Only Statement 2 is true
Both are true
Both are false

82. Lemon law rights may be invoked by:

Purchaser of brand new motor vehicles, the purchase being made in the Philippines
Purchaser of brand new motor vehicles, the purchase being made anywhere, but the manufacturer is situated in the
philippines
Purchaser of brand new or secondhand motor vehicles, the purchase being made in the Philippines
Purchaser of brand new or secondhand motor vehicles, the purchase being made anywhere, but the manufacturer is
situated in the philippines

83. How many repair attempts will rights under the Lemon Law be available to the consumer?

At least two separate repair attempts

At least three separate repair attempts
At least four separate repair attempts
At least five separate repair attempts

84. Which is the correct sequential order in claiming rights under the Lemon Law?
Bringing the vehicle to the manufacturer
Repair Attempts
Filing a notice of availment
Filing a complaint before the DTI
III, I, II, IV
II, I, III, IV
I, II, III, IV
I, II, IV, III

85. A person will be liable for BP 22 if he makes or draws and issues a check having sufficient funds in or credit with the
drawee bank and then fails to keep sufficient funds or maintain a credit to cover the full amount of the check.

Within 60 days
Within 90 days
Within 120 days
Within 180 days

86. In order to avoid liability under BP 22, the maker or drawer may pay the holder of the check the amount due thereon,
or make arrangements for payment in full by the drawee of such check

Within 5 days after receipt of the notice of dishonor

Within 7 days after receipt of the notice of dishonor
Within 30 days after receipt of the notice of dishonor
Within 15 days after receipt of the notice of dishonor

87. Statement 1: The notice of dishonor must be in writing

Statement 2: A conviction of the crime of estafa precludes a conviction under the Bouncing Checks Law

Only 1 is true
Only 2 is true
Both are true
Both are false

88. Joe issued a check to Marc. At the time Joe issued the check, he had insufficient funds in his account. After a few
days, he withdrew all his funds from his account because he needed money to pay for his car. When encashed, Jason was
surprised to learn that there was no funds in the bank account. Supposing a notice of dishonor was given, can Joe be held
liable for BP 22?

There was no intention to evade the obligation

Yes, the fact that Joe failed to maintain sufficient funds in the bank makes him liable under BP 22.
No, there is proof of knowledge
No, since at the time of issue, there were still funds though insufficient.

89. Statement 1: Fraud or Deceit is an essential element for one to be convicted of BP 22

Statement 2: Damage to the other party must be proven to be convicted of BP 22

Only 1 is true
Only 2 is true
Both are true
Both are false

90. I. The anti Money laundering council may inquire into a bank account upon order of any competent court in cases of
violation of the AMLA, it having been established that there is probable cause that the deposits or investments are related
to unlawful activities or a money laundering offense.

II. In instances where there is probable cause that the deposits or investments are related to kidnapping for ransom,
certain violations of the Comprehensive Dangerous Drugs Act of 2002, hijacking, destructive arson and murder, then
there is no need for the Anti Money laundering council to obtain a court order before it could inquire into such accounts.

Only I is true
Only II is true
Both are true
Both are false
Question 91
1 / 1 pts
The BIR Commissioner is hereby authorized to inquire into the bank deposits of:
I. A decedent to determine his gross income.
II. Any tax payer who has filed an application for tax compromise of his tax liability by reason of financial incapacity to pay
his tax liability.
Only I is true
Only II is true
Both are true
Both are false

92. Covered transactions refer to the following except one:

A transaction in cash or other equivalent monetary instrument exceeding 500,000 Php

A transaction with or involving jewelry dealers, dealers in precious metals and dealers in precious stones in cash or other
equivalent monetary instrument exceeding 500,000
A casino cash transaction exceeding 2,000,000 Php or its equivalent in other currency
None of the above

93. Suspicious circumstances refers to any of the following circumstances, the existence of which makes a transaction
suspicious except one:

There is no underlying legal or trade obligation, purpose or economic justification.

The client is properly identified
The amount involved is not commensurate with the business or financial capacity of the client
Taking into account all known circumstances, it may be perceived that the client’s transaction is structured in order to
avoid being the subject of reporting requirement under the AMLA.

94. I. Covered Institutions shall establish and record the true identity of its clients based on official documents.
II. All records of all transactions of covered institutions shall be maintained and safely stored for ten years from the date
of transactions.

Only I is true
Only II is true
Both are true
Both are false

95. The composition of the Anti Money Laundering Council are the following except:

Governor of the Banko Sentral ng Pilipinas

Commissioner of the Insurance Commission
Chairman of the Civil Service Commission
Chairman of the Securities and Exchange Commission

96. Joe, an employee of 123 Bank, saw the bank account details of Mayor Domogun. Joe told his friend Brian that Mayor
Domogun has been depositing Php1,000,000 a month and that it has the total balance of Php200,000,000. Brian then
told his wife Maria, of the account details of Mayor Domogun. Among the following people, who is liable for violating the
bank secrecy act?

Joe only
Joe and Brian
Joe, and Maria
Joe, Brian, and Maria

97. Statement 1: trust accounts are not covered by the Bank Secrecy law
Statement 2: Investments in government bonds are not covered by the bank secrecy law

Only I is true
Only II is true
Both are true
Both are false

98. Marites is a director in ABC bank. She intends to obtain a P10,000,000 housing loan from ABC bank. With this:

Marites has impliedly waived the secrecy of her bank deposits.

Marites is required to execute a written waiver of secrecy of Bank deposits.
No waiver is required of Marites considering there is no showing that the loan exceeded 10% of the cash positions of ABC
Bank
No waiver is required of Marites if Marites will be able to secure the approval of the Board of directors without her vote.

99. All of the following are covered entities/ persons, except:

Offshore banking units

Internet based casinos
Lawyers acting as independent legal professionals
Register of deeds

100. For a transaction in a casino to be included as a covered transaction, the single cash transaction must be in excess
of:

P500,000
P1,000,000
P5,000,000
P10,000,000