DMC COLLEGE FOUNDATION

BACHELOR OF SCIENCE IN ACCOUNTANCY

REGULATORY FRAMEWORK FOR BUS. TRANSACTIONS
MOCKBOARD EXAMINATIONS
SY: 2016-2017
SET A

NAME:______________________________________________ DATE:___________

MULTIPLE CHOICE (1 point each)

INSTRUCTION: Shade the letter of your best choice in the answer sheet
provided. Strictly no erasures. Use pencil only (preferably Mongol No
2) in shading.

1. A check must be in writing and signed by the drawer for it to be

negotiable. In addition, a check must have the following
requisite, except
a. it must contain an unconditional order to pay a sum certain in
money.
b. it must be payable at a fixed or determinable future time.
c. it must be payable to order or to bearer.
d. the bank drawee must be named with reasonable certainty.

2. Which of the following indorsements is a valid negotiation of the

instrument?
a. “Pay to Arnulfo Alvez, ₱20,000.00” The instrument shows an
amount of ₱30,000.00.
b. “Pay to Arnulfo Alvez and Benito Baldoz.”
c. “Pay to Arnulfo Alvez, ₱20,000.00, and Benito Baldoz,
₱10,0000.00.”
d. “Pay to Arnulfo Alvez, ₱20,000.00 from the amount of
₱30,000.00 on this note.”

3. Which cause of vacancy in the board of directors may be filled by

the board of directors if the remaining directors still
constitute a quorum and by the stockholders if such quorum does
not exist?
a. removal of a director
b. resignation of a director
c. increase in the number of directors
d. expiration of the term of some directors

4. Which of the following causes of vacancy in the board of

directors may be filled by the remaining directors if they still
constitute a quorum?
a. increase in the number of directors
b. removal of a director
c. expiration of the term of director
d. disqualification of a director

5. Shares that may be issued at a price higher than ₱5.00 per share
are
a. par value shares.
b. no-par value shares.
c. both a and b.

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 d. neither a nor b.

6. For the purpose of interlocking directorate, an interlocking

director’s interest in a corporation is considered substantial if
it is
a. at least 20%.
b. more than 20%.
c. at least 25%.
d. more than 25%.

7. A, B, C, D, E, F and G are the duly elected directors for 2017 of

Excellent Corporation whose articles of incorporation provide for
7 directors. On August 1, 2017, Directors A, B, C, D and E met to
fill two vacancies in the board brought about by the valid
removal of F for disloyalty to the corporation and the death of
G. In the said meeting, the remaining directors voted for X to
replace F, and Y, a son of G, to replace his father. Both X and Y
are owners of at least one share of stock of the corporation. The
election of X and Y by the remaining directors is
a. valid for both X and Y.
b. not valid for both X and Y.
c. valid with respect to X; not valid with respect to Y.
d. not valid with respect to X; valid with respect to Y.

8. Under this doctrine, the separate personality of a corporation

may be disregarded if it is used for fraudulent or illegal
purpose or to escape the faithful compliance of an obligation.
a. trust fund doctrine
b. doctrine of piercing the veil of corporate entity
c. doctrine of corporate opportunity
d. doctrine of limited capacity

9. The partnership will bear the risk of the loss of three of the
following things. Which is the exception?
a. things contributed to be sold
b. fungible things or those that cannot be kept without
deteriorating
c. things contributed so that only their use and fruits will be
for the common benefit
d. things brought and appraised in the inventory

10. A person admitted to all the rights of a limited partner

who has died or has assigned his interest in the partnership is
known as
a. an ostensible partner.
b. a liquidating partner.
c. a substituted limited partner.
d. a general-limited partner.

11. Which of the following will not cause the automatic

dissolution of a general partnership?
a. death of a capitalist partner
b. insolvency of a capitalist partner
c. insanity of an industrial partner
d. civil interdiction of an industrial partner

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12. PARAGON Enterprises, a partnership engaged in the garments
manufacturing business, is composed of partners Pacis, Ramas and
Gonzales. During the year, PARAGON bought a computerized
embroidering machine amounting to ₱300,000.00 from Tadena with
the following stipulation: down payment of ₱50,000.00; balance to
be paid in amount equal to 20% of the monthly net profits of
PARAGON until the full amount is paid.
a. Tadena is an actual partner of Pacis, Ramas and Gonzales
during the time that he receives a share of the profits of
PARAGON as payment of the purchase price of the machine.
b. Tadena is only a partner by estoppel of Pacis, Ramas and
Gonzales during the time that he receives a share of the profits
of PARAGON as payment of the purchase price of the machine.
c. Tadena is not a partner of Pacis, Ramas and Gonzales whether
before or after he has received the full payment of the purchase
price of the machine from PARAGON.
d. Tadena is only a nominal partner of Pacis, Ramas and Gonzales
during the time that he receives a share of the profits of
PARAGON as payment of the purchase price of the machine.

13. A limited partner may contribute

a. money and/or property.
b. money and/or services.
c. property and/or services.
d. services only.

14. A meeting of minds between two persons whereby one binds

himself with respect to the other to give something or to render
some service is known as
a. obligation. c. contract.
b. consent. d. stipulation.

15. One of the following is not a real contract.

a. pledge c. deposit
b. commodatum d. sale

16. A contract entered into by an incapacitated person is

a. void. c. rescissible.
b. voidable. d. unenforceable.

17. D and C entered into a contract wherein D agreed to give to

C ₱50,000.00 within 30 days from the date of the execution of
their agreement, which, however, does not state the consideration
received by D from C. What is the status of the contract between
D and C?
a. The contract is void because the cause is not stated in the
contract.
b. The contract is valid because the cause is presumed to exist
and that it is lawful.
c. The contract is rescissible because D suffered damage by
reason of absence of cause.
d. The contract is valid provided another contract is executed
between D and C to state the cause.

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18. The following contracts are required to appear in a public
document for the convenience of the parties so that they may be
registered into the proper recording office, except
a. contracts which have for their object the creation of real
rights over immovable property.
b. the acceptance of an inheritance.
c. the power to administer property.
d. the cession of actions or rights proceeding from an act
appearing in public document.

19. A contract of sale is not a

a. principal contract.
b. nominate contract.
c. consensual contract.
d. real contract.

20. D obtained a loan of ₱100,000.00 from C. The loan agreement

showed that the loan was payable within one year with interest at
6% per annum. However, there was no provision saying that the
rights and obligations of the parties would be transmitted to
their heirs or successors-in-interest. Before maturity, C died
leaving his son S as heir. Which of the following statements is
correct?
a. S cannot collect from D because no mention was made in the
agreement that the credit right would be transmitted to the heirs
of C.
b. S can collect from D although no mention was made in the
agreement that the credit right would be transmitted to the
heirs.
c. S cannot collect from D because the credit right is personal
to C.
d. S cannot collect from D because the law prohibits the
transmission of credit rights.

21. D out of his love and affection for C, donated a parcel of

land to the latter who accepted it. The formalities required by
law were complied with. The contract between D and C is
a. an onerous contract. c. a remuneratory contract.
b. a gratuitous contract. d. an accessory contract.

22. Which of the following contracts involving real property is

valid and enforceable although not in writing?
a. sale of piece of land for ₱50,000.000
b. lease of an agricultural lot for a period of 2 years at a
monthly rental of ₱3,000.00
c. mortgage of a commercial lot to secure a loan of ₱50,000.00
d. donation and acceptance of a residential lot

23. On August 1, 2016, Samonte sent a letter to Benavidez. In

the letter, Samonte offered to sell his house and lot located at
Green Valley Subdivision for ₱1,200,000 cash and stated that the
acceptance had to be received by Samonte not later than August
15, 2016. Benavidez sent his accepatance on August 10, 2016, but
due to delay in the mails, Samonte received the letter of
acceptance on August 18, 2016.

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 a. The contract between Samonte and Benavidez was perfected on
August 10, 2016.
b. The contract between Samonte and Benavidez was perfected on
August 15, 2016.
c. The contract between Samonte and Benavidez was perfected on
August 18, 2016.
d. No contract was perfected between Samonte and Benavidez.

24. Three of the following statements pertain to natural

obligation. Which one does not?
a. It is not enforceable in a court of justice.
b. Obligation exists by reason of equity and moral justice.
c. If performed voluntarily, recovery can no longer be made.
d. There is juridical necessity to perform it.

25. A, B and C are solidary debtors of X in the amount of

₱3,000. X renounces the share of A and A accepts the
renunciation. Thereafter, B becomes insolvent. Ultimately,
a. C alone will shoulder the balance of ₱2,000.
b. A will shoulder ₱500 while C will shoulder ₱1,500.
c. C will shoulder only his share of ₱1,000. A will no longer
shoulder any amount since his share was already renounced by X.
d. A will shoulder ₱1,000 while C will shoulder ₱1,000 for the
remaining balance of ₱2,000.

26. D borrowed ₱50,000 from C. C dies before he has collected

the debt leaving S, his son, as heir. Which of the following
statements is correct?
a. S can collect from D although D and C did not agree that the
credit right will pass on to the heirs of C.
b. S cannot collect because the credit right is personal to C.
c. S can collect only if D and C agreed that the credit right
will pass on the heirs of C.
d. S cannot collect because the law prohibits the transmission of
the credit right.

27. D is obliged to give C a specific ring. The parties agreed

that D may give a specific bracelet as substitute. Which of the
following statements is true?
a. If the ring is lost through a fortuitous event before
substitution, the obligation is extinguished.
b. If the bracelet is lost through a fortuitous event before
substitution, the obligation is extinguished.
c. If the ring is lost through a fortuitous event after
substitution, the obligation is extinguished.
d. If the ring is lost through the debtor’s fault after
substitution, the debtor shall pay damages.

28. Which of the following is not a proper remedy for the

creditor?
a. to compel the debtor to make the delivery, if he obligation is
to deliver a determinate thing
b. to ask that the obligation be complied with at the expense of
the debtor, if the obligation is to deliver a generic thing

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 c. to compel the debtor to perform the obligation, if the
obligation is an obligation to do
d. to ask the debtor that what has been done be undone, if the
obligation is an obligation not to do

29. A and B are the owners of adjacent poultry and piggery

farms. One day, B got sick and failed to visit his farm. When A
noticed that B was not again around during the second day, he
himself took care of the animals by feeding them and cleaning the
pig and poultry pens. A did this for the next three days until B
returned. A incurred necessary and useful expenses amounting to
₱5,000 in the process. Under the circumstances, B is obliged to
reimburse A for such expenses which the latter incurred by reason
of
a. contract. c. negotiorum gestio.
b. solutio indebiti. d. quasi-delict.

30. A, B and C are solidary debtors of X, Y and Z, solidary

creditors, in the amount of ₱2,700. X renounces the whole
obligation without the consent of Y and Z. The debtors accepted
the renunciation.
a. The whole obligation is extinguished.
b. Only ₱900 is extinguished.
c. No part of the obligation is extinguished because not all the
creditors consented to the renunciation.
d. Only ₱300 is extinguished.

31. The articles of incorporation differ from the by-laws in

that the articles of incorporation are
a. the rules of action adopted by a corporation for its internal
government.
b. adopted before or after incorporation.
c. a condition precedent in the acquisition by a corporation of a
juridical personality.
d. approved by the stockholders if adopted after incorporation.

32. A delinquent stockholder is not entitled to the following

rights, except the right
a. to be voted.
b. to vote or be represented in the meetings of stockholders.
c. to dividends.
d. of a stockholder.

33. One of the following acts may be performed by the executive

committee of a corporation. Which is it?
a. declaration of stock dividends
b. filing of vacancies in the board of directors
c. amendment or repeal of the by-laws or adoption of new by-laws
d. approval of contracts in the ordinary course of business

34. Which of the following statements is false concerning

treasury shares?
a. They are entitled to dividends.
b. They have no voting right.

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 c. They may be disposed of for a price lower than the par value
provided such price is reasonable.
d. They are not outstanding shares.

35. The elements of a contract without which a contract would

not exist are known as
a. accidental elements.
b. natural elements.
c. special elements.
d. essential elements.

36. S and B signed a deed (a written contract) of sale of motor

vehicle whereby S sold his car to B for ₱200,000. The parties
agreed that S would deliver the car, and B would pay the price,
after two weeks. Before the two week period was over, S found
another buyer who was willing to pay ₱220,000 for the car. May S
validly withdraw from his contract with B?
a. Yes, because B has not yet paid the price.
b. Yes, because the other buyer was willing to pay more.
c. No, because S was already bound by his contract with B and he
cannot unilaterally withdraw from it.
d. Yes, because S has not yet delivered the car.

37. An insurance contract is

a. an aleatory contract.
b. a contract of adhesion.
c. both (a) and (b).
d. neither (a) nor (b).

38. Which of the following contacts is not a valid contract?

a. A contract of sale of an animal suffering from a contagious
disease.
b. A purchase of an illegitimate child by one who is the father
of the child.
c. A contract of insurance whereby the insured asked another to
take his place during the medical examination.
d. A contract between F, a Filipino and A, an alien, for the
purchase of the right kidney of F for ₱200,000.

39. S sold a laptop computer to B for ₱120,000 with B giving a

down payment of ₱10,000 and promising to pay the balance in 11
equal monthly installments. B likewise executed a chattel
mortgage on the computer and a real mortgage on his lot to secure
the payment of the balance of the purchase price. After paying
the first two installments, B defaulted in the payment of next
three installments. S may avail himself of any of the following
remedies except to
a. exact fulfillment of the obligation.
b. cancel the sale.
c. foreclose the chattel mortgage and recover any deficiency
during the foreclosure sale if there is an agreement to that
effect.
d. foreclose the real mortgage and recover the deficiency during
the foreclosure sale even if there is no agreement to that
effect.

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40. Necessaries include everything indispensable for sustenance
clothing and medical attendance, and which of the following?
a. dwelling c. transportation
b. education d. all of the foregoing

41. A kind of mortgage which lacks the formalities required by

law but nevertheless shows the intention of the parties to secure
a debt with real property is known as
a. conventional mortgage. c. equitable mortgage.
b. voluntary mortgage. d. legal mortgage.

42. The following elements are common in both pledge and

mortgage, except
a. the contract is constituted to secure the fulfillment of a
principal obligation.
b. the property on which the security is constituted must be
delivered to the creditor.
c. the debtor must be the absolute owner of the property pledged
or mortgaged.
d. the debtor must have free disposal of the property pledged or
mortgaged.

43. Chattel mortgage and pledge are similar in what respect?

a. Right of the creditor to recover the deficiency if the
proceeds of the foreclosure sale are lower than the obligation.
b. Object of the contract.
c. Right of the person constituting the security to get excess of
the proceeds of the foreclosure sale over the amount of the
obligation.
d. Formality required to bind third persons.

44. A written instrument indicates that D received ₱20,000

from C. Later, the parties executed a written instrument
indicating the delivery by D of his laptop computer to C. In case
of doubt, what contract was entered into between D and C as
regards the laptop computer?
a. pledge c. sale
b. dacion en pago d. none, the contract is void

45. One of the following acts may be delegated by a principal

to his agent. Which is it?
a. Vote during the meeting of stockholders of a corporation where
the principal is a stockholder.
b. Attend meetings of the board of directors of a corporation
where the principal is a director.
c. Purchase land in the Philippines of which the principal is an
alien.
d. Represent the principal in a marriage ceremony where the
principal is a party to the marriage contract.

46. R, S and T, each one owning a separate lot, appointed A in

one instrument to sell their respective lots. Under the
agreement, A will receive a commission of 10% of the selling
price of each lot. A was able to sell the lot of R for ₱100,000;

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 the lot of S for ₱200,000; and the lot of T for ₱300,000. How
much commission may A collect from R?
a. ₱60,000 c. ₱20,000
b. ₱10,000 d. ₱30,000

47. P appointed A as his agent. For more than 5 years, A

transacted business with the general public including X. On the
sixth year of the agency, P revoked the authority of A as his
agent by giving a notice of revocation to A and causing the
publication of the revocation in the Manila Bulletin on the same
day that P revoked A’s authority. Three months thereafter, X, who
was not aware of the revocation of A’s authority, in the course
of his usual business transactions with A as P’s agent, sold and
delivered goods to A. X now sues P for the price of the goods.
a. P is liable to X because X did not read the publication of the
revocation of A’s power.
b. P is not liable because the revocation as published is binding
upon any person including X although X has not read the
publication.
c. P is liable to X because P should have specially informed X
that A’s authority had been revoked.
d. P is liable because A was a customer of long standing and must
be given the benefit of the doubt.

48. Sampaca, manufacturer of ‘Dreamland’ beds, and Bergonio

entered into a contract with the following terms: Sampaca was to
furnish beds to Bergonio who must pay the price within 30 days
from the receipt of the shipment, minus a discount of 25%. What
contract was entered into between Sampaca and Bergonio?
a. contract of sale
b. contract of agency to sell
c. contract to sell
d. contract of consignment

49. In three of the following wrongful acts of partners, the

partnership is solidarily liable with all the partners to third
persons. Which one is the exception?
a. For loss or injury caused to a third person by reason of the
wrongful act or omission of a partner acting in the ordinary
course of business.
b. Where a partner acting within the scope of his apparent
authority receives money or property of a third person and
misapplies it.
c. Where the partnership receives money or property of a third
person in the ordinary course of business and such money or
property is misapplied by a partner while it is in the custody of
the partnership.
d. For loss or injury caused to a third person by reason of the
use of partnership property by a partner for personal purpose.

50. Which of the following will not cause the automatic

dissolution of a general partnership?
a. death or a partner
b. insolvency of a partner
c. when the partnership business becomes unlawful

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 d. insanity of a partner

51. Daoang and Depante have been partners for more than 5 years
in the purified water business. At the start of the sixth year,
Daoang assigned his interest in the partnership to Trinidad, but
Depante objected on the ground that he did not want Trinidad to
be his partner.
a. Trinidad automatically became a partner of Depante when Daoang
conveyed his interest to him.
b. Daoang and Depante continue to be parents despite Daoang’s
conveyance of his interest to Trinidad.
c. The partnership between Daoang and Depante was automatically
dissolved when Daoang conveyed his interest to Trinidad.
d. The conveyance by Daoang of his interest in the partnership to
Trinidad entitled the latter to inspect the books, and
participate in the management, of the partnership.
d. The conveyance by Daoang of his interest in the partnership to
Trinidad entitled the latter to inspect the books, and
participate in the management, of the partnership.

52. A stock that is issued without consideration or below par

value or the issued price is known as
a. watered stock. c. redeemable stock.
b. delinquent stock. d. preferred stock.

53. Which of the following statements pertaining to non-stock

corporations is incorrect?
a. Members may vote by mail.
b. The number of trustees may be more than 15.
c. Any incidental income that it may earn may be distributed as
dividends to its members.
d. The meetings of members may be held outside the city or
municipality where the principal office of the corporation is
located.

54. The following statements are presented to you:

I. All ultra-vires acts are illegal acts.
II. All illegal acts are ultra-vires acts.

a. Both statements are true.

b. Both statements are false.
c. I is true; II is false.
d. I is false; II is true.

55. In which of the following instances is a foreign

corporation not engaged in business in the Philippines?
a. opening a liaison office in the Philippines
b. participating in the management of a domestic business in the
Philippines
c. having a nominee director to represent its interests in a
domestic corporation
d. appointing a distributor who is domiciled in the Philippines

56. An incorporator of a stock corporation at the time of

incorporation must be

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 a. the owner of at least one share of stock of the corporation.
b. a member of first board of directors.
c. a duly elected officer of the corporation.
d. all of the foregoing.

57. The executive committee must have at least

a. three members who must act with a unanimous vote of all its
members.
b. three members who must act by a majority vote of all the
members.
c. five members who must act with a unanimous vote of all its
members.
d. five members who must act by a majority vote of all its
members.

58. No-par shares may not be issued for a price lower than
a. stock exchange quotation price.
b. issued price.
c. market price.
d. fair market value.

59. Danilo pays the Rural Bank of Sta. Rosa the sum of ₱30,000.
May Danilo demand the cancellation of the pledge of 1,000 shares
of stock by reason of such payment?
a. No, Danilo has to pay his obligation of ₱90,000 in full before
he can demand any cancellation of the pledge of the shares of
stock.
b. Yes, Danilo can demand cancellation of the pledge of 1,000
shares because the market value of the same is equivalent to the
payment of ₱30,000 that was made.
c. No, Danilo can demand cancellation of the pledge only if he
has paid more than 50% of his debt.
d. Yes, Danilo can demand cancellation because the pledge of each
of the 3 stock certificates is independent of one another.

60. Immediately after their election, the directors must

formally organize by the election of the following officers,
except
a. president. c. treasurer.
b. vice president. d. corporate secretary.

61. An instrument which is not dated will be considered dated

as at
a. acceptance. c. last indorsement.
b. first indorsement. d. issuance.

62. “I promise to pay P or his order the sum of ₱10,000 30 days

after the death of X.” This is an instrument payable
a. at a determinable future time.
b. on demand.
c. upon fulfillment of a condition.
d. at an indefinite time, hence, non-negotiable.

63. Who among the following is the holder of a negotiable

instrument originally payable to order?

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 a. The original payee who has negotiated the instrument.
b. The indorsee who is in possession of the instrument.
c. The possessor of the instrument to whom the instrument was
delivered without any indorsement.
d. The indorsee who has negotiated the instrument.

64. An instrument payable to bearer may be negotiated through

any of the following means, except by
a. special indorsement plus delivery.
b. mere delivery.
c. blank indorsement plud delivery.
d. no delivery is required as long as there is an indorsement,
whether blank or special.

65. The separate paper attached to an instrument on which an

indorsement or acceptance of the instrument is written is called
a. allonge. c. enclosure.
b. memorandum. d. attachment.

66. An indorsement where the indorser signs only his name at

the back of the instrument is a
a. special indorsement. c. qualified indorsement.
b. blank indorsement. d. restrictive indorsement.

67. An indorsement where the indorser waives the benefit of any

law intended for his protection is known as
a. an absolute indorsement.
b. a facultative indorsement.
c. a conditional indorsement.
d. a successive indorsement.

68. Which of the following instruments is negotiable?

a. treasury warrant c. letter of credit
b. postal money order d. trade acceptance

69. A party secondarily liable is discharged through any of the

following means, except by the
a. intentional cancellation of his signature by the holder.
b. discharge of a prior party.
c. release of the principal debtor.
d. extension of the time of payment which is assented to by such
party secondarily liable.

70. “Pay to Alberto Alvarez for collection only.

(Sgd) Ponciano Parcero”
This is an example of
a. the agency type of restrictive indorsement.
b. the trust type of restrictive indorsement.
c. a qualified indorsement.
d. a conditional indorsement.

71. Obligations may arise from any of the following, except

a. contracts.
b. quasi-contracts.
c. law.

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 d. prestation.

72. It is the voluntary administration of the property of

another without his consent.
a. negotiorum gestio c. quasi-delict
b. solution indebiti d. contract

73. D borrowed ₱50,000 from C. C dies before he has collected

the debt leaving S, his son, as heir. Which of the following
statements is correct?
a. S can collect from D although D and C did not agree that the
credit right will pass on to the heirs of C.
b. S cannot collect because the credit right is personal to C.
c. S can collect only if D and C agreed that the credit right
will pass on the heirs of C.
d. S cannot collect because the law prohibits the transmission of
the credit right.

74. The following statements concerning payment by cession are

true, except one. Which is it?
a. The creditors become the owners of the properties of the
debtor that were ceded to them.
b. Payment by cession extinguishes the obligations only to the
extent covered by the proceeds of the sale of the debtor’s
properties.
c. The debtor must be insolvent.
d. Cession affects all the properties of the debtor except those
exempt from execution.

75. On July 1, 2016, D obliged himself to give C ₱50,000 if C

will marry X on or before December 31, 2016. The condition of the
obligation is a
a. positive condition. c. joint condition.
b. negative condition. d. impossible condition.

76. D owes C ₱6,000. No date for payment stipulated by the

parties.
a. C cannot require D to pay because there is no date for
payment.
b. C can require D to pay at anytime.
c. D is not liable to C because the obligation is void there
being no date of payment.
d. D is not required to pay unless C goes to court and asks the
court to fix a period for the payment.

77. Which of the following is not considered a conditional

obligation?
a. D to pay C ₱5,000 as soon as D has the means.
b. D to pay C ₱5,000 if C marries Y.
c. D to pay C ₱5,000 if C tops the CPA examinations.
d. D to pay C if X dies of malaria.

78. One of the following does not apply to payment by cession,

which is it?

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 a. ownership of the debtor’s properties is transferred to the
creditor
b. the debtor must be insolvent
c. it affects all the properties of the debtor except those
exempt from execution
d. there are several creditors

79. Dolores borrowed ₱15,000 from Consuelo. On due date,

Dolores was not able to pay but she promised to give Consuelo a
specific ring, a specific bracelet, or a specific necklace, in
payment of the debt. Consuelo accepted the offer of Dolores. What
kind of obligation is the new obligation of Dolores?
a. facultative obligation
b. compound obligation
c. alternative obligation
d. simple obligation

80. How was the obligation of Dolores to pay ₱15,000

extinguished?
a. by compensation c. by confusion
b. by novation d. by condonation

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