Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search Store documents

The best documents sold by students who completed their studies

Search through all study resources
Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

University Rankings

Discover the best universities in your country according to Docsity users

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

From our blog

Exams and Study
Go to the blog

Law Studyguide and testbanks, Study notes of Law

Saint Paul University Philipinnes (SPUP)Law

For law, study notes often outline legal principles, case summaries, important statutes, and interpretations of legal concepts. Both subjects require organization and clarity to ensure easy comprehension and retention.

Typology: Study notes

2023/2024

Available from 05/27/2025

syana-luvs
syana-luvs 🇵🇭

5 documents

1 / 45

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
joyboy
RFBT 2024
1. In relation to misrepresentation, which one of the following statements is true?
a) Statements of opinion can never amount to a misrepresentation.
b) A statement regarding a future course of conduct cannot amount to a
misrepresentation.
c) Silence cannot amount to a misrepresentation.
d) Statements amounting to mere 'puffs' cannot amount to a misrepresentation.
2. What are the general remedies for innocent misrepresentation?
a) Rescission of the contract and the representee may also be able to claim an indemnity.
b) Rescission of the contract and damages.
c) Damages only.
d) Rescission only.
3. In relation to negligent misrepresentation, which one of the following statements is
untrue?
a) In cases involving negligent misrepresentation under statute, there is no need to
establish the existence of a 'special relationship.'
b) The assessment of damages for negligent misrepresentation under statute is the same
as for fraudulent misrepresentation.
c) Negligent misrepresentation under statute will only occur in cases where the
representor enters into a contract with the representeee.
d) In cases involving negligent misrepresentation under the common law, the burden of
proof is placed on the representor to establish that his representation was true.
4. Which one of the following statements provides an accurate description of a mutual
mistake? (CPALE May 2023)
a) A mutual mistake occurs where both parties have made the same mistake.
b) A mutual mistake occurs where both parties have made a mistake, but they have
made a different mistake.
c) A mutual mistake occurs where one party is mistaken and the other party knows, or
can be taken to know, of the mistake.
d) A mutual mistake occurs where no actual mistake has occurred, but both parties later
believe a mistake has occurred.
5. Which one of the following is NOT an example of common mistake? (CPALE May 2024)
a) Mistake as to identity
b) Mistake as to existence of the subject matter
c) Mistake as to title
d) Mistake as to quality
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe
pff
pf12
pf13
pf14
pf15
pf16
pf17
pf18
pf19
pf1a
pf1b
pf1c
pf1d
pf1e
pf1f
pf20
pf21
pf22
pf23
pf24
pf25
pf26
pf27
pf28
pf29
pf2a
pf2b
pf2c
pf2d

Partial preview of the text

Download Law Studyguide and testbanks and more Study notes Law in PDF only on Docsity!

RFBT 2024

  1. In relation to misrepresentation, which one of the following statements is true? a) Statements of opinion can never amount to a misrepresentation. b) A statement regarding a future course of conduct cannot amount to a misrepresentation. c) Silence cannot amount to a misrepresentation. d) Statements amounting to mere 'puffs' cannot amount to a misrepresentation.
  2. What are the general remedies for innocent misrepresentation? a) Rescission of the contract and the representee may also be able to claim an indemnity. b) Rescission of the contract and damages. c) Damages only. d) Rescission only.
  3. In relation to negligent misrepresentation, which one of the following statements is untrue? a) In cases involving negligent misrepresentation under statute, there is no need to establish the existence of a 'special relationship.' b) The assessment of damages for negligent misrepresentation under statute is the same as for fraudulent misrepresentation. c) Negligent misrepresentation under statute will only occur in cases where the representor enters into a contract with the representeee. d) In cases involving negligent misrepresentation under the common law, the burden of proof is placed on the representor to establish that his representation was true.
  4. Which one of the following statements provides an accurate description of a mutual mistake? (CPALE May 2023) a) A mutual mistake occurs where both parties have made the same mistake. b) A mutual mistake occurs where both parties have made a mistake, but they have made a different mistake. c) A mutual mistake occurs where one party is mistaken and the other party knows, or can be taken to know, of the mistake. d) A mutual mistake occurs where no actual mistake has occurred, but both parties later believe a mistake has occurred.
  5. Which one of the following is NOT an example of common mistake? (CPALE May 2024) a) Mistake as to identity b) Mistake as to existence of the subject matter c) Mistake as to title d) Mistake as to quality
  1. Regarding mistake as to identity, which one of the following statements is true? a) A contract will be held void if the mistake relates to the attributes of a person. b) Where parties contract face-to-face, and one party is not who he claims to be, the general rule is that a mistake as to identity will not occur. c) Where parties contract face-to-face, and one party is not who he claims to be, the general rule is that a mistake as to identity will occur. d) Where parties do not contract face-to-face (e.g. by mail), and one of the parties is not who he claims to be, the general rule is that a mistake as to identity will not occur.
  2. Which one of the following relationships does NOT give rise to a presumption of undue influence? a) Employer and employee b) Parent and child c) Trustee and beneficiary d) Doctor and patient
  3. In relation to duress, which one of the following statements is true? (CPALE May 2022) a) Duress will only be present where one party physically threatens the person of another. b) The doctrine of duress is a creation of equity. c) The doctrine of duress only applies to property or the person, and has not been extended to cover economic or business interests. d) The presence of duress will render a contract voidable.
  4. Which one of the following contracts is NOT an example of an illegal contract? a) A contract that purports to oust the jurisdiction of the courts. b) A contract requiring the commission of an unlawful act. c) A contract that amounts to a legal wrong. d) A lawful contract that does not require the commission of an unlawful act, but results in a person benefitting from an unlawful act, should that unlawful act occur.
  5. Which one of the following is NOT an example of a contract in breach of public policy? a) An agreement that adversely affects the institution of marriage. b) A contract that seeks to oust the jurisdiction of the courts c) A contract in restraint of trade d) A contract involving commercial dealings with the enemy during wartime.
  6. Which one of the following is not a method by which a contract can be discharged? a) Discharge by misrepresentation b) Discharge by performance
  1. If a non-breaching party validly terminates the contract, a number of consequences may follow. Which one of the following is not a valid consequence of termination? a) Termination always discharges the entire contract. b) If there has been a total failure of consideration, the non-breaching party can recover any monies paid. c) The party that terminated the contract is released from performing any obligations that remain to be performed. d) A party that exercises the right to terminate cannot subsequently change his mind and demand performance.
  2. If the non-breaching party decides to affirm the breach, a number of consequences may follow. Which one of the following is not a valid consequence? a) If the non-breaching party affirms the breach, the contract remains in force, but any further breaches will entitle the non-breaching party to immediately terminate the contract. b) If the non-breaching party obtains an order for specific performance, this will amount to conditional affirmation only. c) The contract will remain in force and will continue to bind both parties. d) If the non-breaching party unequivocally affirms the breach, the right to terminate is lost and he cannot subsequently change his mind and terminate the contract.
  3. What is frustration? a) Frustration occurs where a party fails to perform his contractual obligations due to an event that is beyond the control of either party. b) Frustration occurs where one party breaches his contractual obligations due to interference from the other party. c) Frustration occurs where one party cannot perform his contractual obligations due to his own negligent act. d) Frustration occurs where contractual performance becomes more difficult.
  4. Regarding the time of performance, which one of the following statements is untrue? a) Where time is of the essence of a contract, a slight delay will not allow the non- breaching party to terminate the contract. b) Where a contract does not provide that performance must be completed by a certain date, the parties to the contract must perform their obligations within a reasonable time. c) Where the time of performance is not 'of the essence of the contract,' then a party to the contract can give notice that it has become of the essence of the contract. d) Time will be of the essence where the subject matter of the contract indicates that time shall be of the essence.
  1. Regarding the tendering of performance, which one of the following statements is untrue? a) If a debtor attempts to tender payment, but the other party refuses, then the debtor is discharged from the obligation to pay. b) A tender of payment is only valid if made in legal currency. c) A refusal to accept the tender of performance (where performance amounts to an act other than the payment of money) will constitute a breach of contract d) The tender of payment is invalid if the other party is required to provide change.
  2. Regarding the remedy of damages, which one of the following statements is untrue? a) Where the defendant maliciously breaches a contract, the court will increase the award of damages to take into account his reprehensible behaviour. b) Generally, a claimant cannot recover damages for losses sustained to a third party. c) The claimant cannot recover more than he actually lost. d) Contractual damages are not designed to punish the defendant.
  3. What is expectation loss? a) Expectation loss is a measure of damages designed to compensate the claimant for the benefits that he would have expected to gain had the defendant not breached the contract. b) Expectation loss is a measure of damages designed to compensate the claimant for expenses incurred in expectation of the contract proceeding as planned. c) Expectation loss refers to the maximum amount that a party to a contract will expect to pay should he breach the contract. d) Expectation loss refers to the maximum amount that liability for breach of contract can be limited to via the use of an exclusion clause.
  4. Which one of the following is not a form of non-pecuniary loss? a) Loss of profits. b) Physical injury or inconvenience. c) Mental distress and disappointment. d) Loss of reputation.
  5. In relation to causation, which one of the following statements is untrue? a) If the claimant's loss is caused partly by the defendant's breach of contract and partly by the intervening act of a third party, the defendant will not be liable for the claimant's loss. b) Party in breach of contract will not be liable to pay damages where the non-breaching party's loss was not caused by the breach of contract, but by an intervening act or event.

d) Where the contract is one for personal services.

  1. What is a prohibitory injunction? a) An order of the court requiring the defendant to refrain from the performance of a certain act. b) An order of the court requiring the defendant to perform a positive act. c) An order of the court requiring the defendant to remedy a breach of contract that he has committed. d) An order of the court requiring the defendant to pay damages for his breach of contract.
  2. Regarding the limitation period of a breach of contract action, which one of the following statements is untrue? a) If the action for breach of contract is based upon the fraud of the defendant, then the limitation period begins to run only when the claimant first sustained loss. b) If the claimant is a minor when the cause of action arises, then the limitation period will not begin to run until he reaches the age of 18 or dies. c) Actions concerning a simple contract cannot be brought after six years, beginning with the date on which the cause of action arose. d) None of the choices.
  3. What is 'pure economic loss?' a) Financial loss that is caused by physical injury. b) Financial loss that is not associated with physical injury or property damage. c) Financial loss that is caused by psychiatric injury. d) Financial loss that is caused by damage to property.
  4. When can a claimant recover damages for 'pure economic loss?' a) Where the defendant has made a negligent misstatement that causes the claimant to sustain pure economic loss. b) Where the claimant's pure economic loss was sustained as a result of defective property. c) Where the defendant is aware that his act of negligence could cause pure economic loss. d) Where the pure economic loss was caused by the defendant's omission.
  5. Generally, the standard of care expected of a person is judged objectively. However, in certain situations, the courts will allow elements of subjectivity into their deliberations. Which one of the following is NOT such a situation? a) Where the defendant has some relevant special skill or expertise. b) Where the defendant is a child.

c) Where the defendant suffers a sudden disabling event and is aware of the effect that the event has had. d) Where the defendant is mentally or physically disabled or incapacitated.

  1. When determining whether a breach of duty has taken place, the courts will take into account a number of factors. Which one of the following is NOT a relevant factor? a) The usefulness of the defendant's conduct. b) The seriousness of the injury. c) The ease with which the damage sustained can be financially assessed. d) The likelihood of injury.
  2. What is vicarious liability? a) Vicarious liability imposes liability on an employer for the acts of his employees, providing that the employer is also in some way to blame. b) Vicarious liability refers to a situation where liability is imposed on one person for the acts of another person. c) Vicarious liability is an independent tort that creates a cause of action against the employer of an employee who has committed a tortious act. d) Where an employee commits a tort, vicarious liability provides that the employee will not be sued, but his employer will be sued instead.
  3. Which one of the following is NOT required in order to impose vicarious liability on an employer? a) The employee must have acted negligently. b) The employee must have committed a tort. c) The tort must have been committed in the course of the employee's employment. d) There must be an employer-employee relationship.
  4. Today, how do courts determine whether a person is an employee? a) The courts will look at to what extent the purported employee is integrated into the employer's business. b) The courts will look at the extent to which the employer controls where the purported employee works, what he does and how he does it. c) The courts will look at how the purported employee is classified in his contract. d) The courts will take into account all the facts of the case in order to determine whether or not a person is an employee.
  5. What is 'subrogation?' a) The ability to take on the legal rights of others. b) The ability of an employer to obtain a contribution from an employee who has committed a tortious act for which the employer has been found vicariously liable.

d) Repaying the partners for any capital contributions that they made.

  1. Which one of the following statements is true? a) Only persons who have purchased shares can become members. b) A person can be a shareholder, but may not necessarily be a member. c) A public company has shareholders whereas a private company has members. d) There is no difference at all - a shareholder is always a member and vice versa.
  2. What is an 'ordinary resolution?' a) A resolution that is passed by 50 per cent or more of the members. b) A resolution that is passed by a majority of not less than 75 percent. c) A resolution that is passed if 100 per cent of the members agree. d) A resolution that is passed by a simple majority.
  3. Regarding written resolutions, which one of the following statements is true? a) The members of a private company can request a written resolution, providing they hold a minimum of 10 per cent of the total voting rights in the company. b) In order to pass a written resolution, unanimity is required. c) The written resolution procedure cannot be used to remove an auditor before the expiry of his office. d) The written resolution procedure can be used by both public and private companies.
  4. What is the notice period for the annual general meeting of a public company? (CPALE May 2023) a) Twenty-one days b) Twenty-one days, unless the articles provide for a longer period c) Fourteen days d) Fourteen days, unless the articles provide for a longer period
  5. What is a 'quorum?' a) The minimum number of 'qualifying persons' required in order to validly conduct business. b) A meeting that lacks a chairman. c) The maximum number of persons who may attend a meeting. d) A meeting that is invalid because sufficient notice has not been provided.
  6. Are all companies required to hold an annual general meeting (AGM)? a) Both public and private companies are required to hold an AGM. b) Both public and private companies are required to hold an AGM, but private companies can opt out of this requirement.

c) Only public companies are required to hold an AGM, but they opt out of this requirement. d) Only public companies are required to hold an AGM.

  1. There are restrictions on who can act as a director. Which one of the following is NOT a valid restriction? a) A company's auditor is disqualified from acting as its director. b) Generally, an individual under the age of 16 cannot be appointed as a director. c) An individual with a criminal record cannot act as a director. d) An undischarged bankrupt who acts as a director commits a criminal offence.
  2. Regarding the division of power between the board and the members, which one of the following statements is NOT true? a) Where the articles vest a general power to manage the company in the directors, the members can still pass an ordinary resolution instructing the directors to act in a certain way. b) The directors only have such power as is delegated to them by the members. c) The power to run the company is initially vested in the members of the company. d) If the directors are unable or unwilling to exercise their powers, then the general power to manage reverts back to the members.
  3. Regarding the disqualification of directors, which one of the following statements is true? a) A director who contravenes a disqualification order can be personally liable for the debts of the company during the duration of the contravention. b) Breach of a disqualification order constitutes an indictable offence. c) The majority of disqualification cases concerns disqualification on the ground that the director has been convicted of an indictable offence. d) Disqualification on the ground of unfitness can result in a maximum disqualification period of five years.
  4. There are limitations on the issuing and redemption of redeemable shares. Which one of the following is NOT an actual limitation? a) Redeemable shares cannot be issued if the only shares that the company has issued are redeemable shares. b) Redeemable shares can only be redeemed if they are fully paid-up. c) When redeeming shares, the company must pay fully for them at the time of redemption, unless the terms of redemption provide for a later date. d) Private companies can only issue redeemable shares if authorized by their articles.
  5. Which one of the following statements is true?

c) A contract involving only one party. d) A contract that either party can withdraw from at any time.

  1. What are the requirements for a valid and binding contract? (Potential question) a) Offer, acceptance, consideration, and intention to create legal relations. b) Offer, acceptance, certainty, practicality, and intention to create legal relations. c) Offer, acceptance, certainty, consideration, and reasonableness. d) Offer, acceptance, certainty, consideration, and intention to create legal relations.
  2. Which one of the following usually amounts to an offer? a) Goods sold through a machine. b) Advertisements. c) Displays of goods. d) An invitation to submit a tender. *Where goods are sold through a machine, the general rule is that the machine is making an offer.
  3. An offer can be terminated in a number of ways. Which one of the following is NOT an effective way to terminate an offer? a) Rejection by the offeree. b) Failure of a condition precedent. c) Revoking the offer following acceptance. d) Lapse of a reasonable time. *An offer cannot be revoked once it has been accepted.
  4. Which one of the following statements regarding acceptance is true? a) Silence does not constitute valid acceptance. b) An offeree can accept an offer of which he was not aware. c) Generally, there is no need for an offeree to communicate his acceptance to the offeror. d) Generally, acceptance need not precisely match the terms of the offer.
  5. What is the principal effect of a counter-offer? a) A counter-offer destroys the original offer and replace it with a new offer. b) A counter-offer creates a binding contract based on the terms of the counter-offer. c) A counter-offer creates a new offer, but the original offer is still capable of being accepted. d) A counter-offer creates a binding contract based on the terms of the original offer.
  6. What does the postal rule state? a) That acceptance occurs as soon as the letter is posted.

b) That acceptance occurs when the letter is received by the offeror. c) That acceptance occurs when the letter is read by the offeror. d) That acceptance does not occur if the letter is lost in the post.

  1. In relation to the requirement of certainty, which ONE of the following statements is true? a) Where the parties have wholly or partially performed their obligations under a contract, the court is unlikely to hold that a contract is void due to vagueness or uncertainty. b) If an agreement in uncertain, the courts will rewrite it to provide it with the requisite certainty. c) Where the words of a contract are vague, the court will automatically hold that the contract is invalid. d) The courts will never uphold an agreement that is incomplete.
  2. Which one of the following statements provides an accurate description of executory consideration? a) Executory consideration is consideration that is yet to be provided. b) Executory consideration is consideration that has already been provided. c) Executory consideration is consideration that is promised following the other party's performance of an act. d) Executory consideration is consideration that is insufficient in the eyes of the law.
  3. Which one of the following statements is untrue? a) Performance of a contractual duty owed to a third party does not amount to good consideration. b) Generally, performance by A of an existing legal duty does not provide fresh consideration for a new promise made by B. c) Generally, the performance of a pre-existing contractual obligation by A does not provide fresh consideration for a new promise made by B. d) Generally, part-payment of a debt does not constitute sufficient consideration.
  4. Sharon wishes to apply for a promotion, but her employer tells her that the company is only accepting applications from full-time members of staff and, as Sharon is part-time, she is not eligible to apply. Which form of discrimination is this most likely to be? a) Direct discrimination b) Harassment c) Indirect discrimination d) Victimization
  5. MultiTech Ltd is taken over by TechnoSoft Inc. James, an employee of MultiTech is told that, following the takeover, he will become an employee of TechnoSoft but his job will

a) If a majority of the directors make a declaration of solvency, the winding up will be a members' voluntary winding up. If no such declaration is made, it will be a creditors' voluntary winding up. b) A creditors' voluntary winding up is commenced by the creditors, whereas a members' voluntary winding up is commenced by the members. c) A members' voluntary winding up is commenced by passing a special resolution, whereas a creditors' voluntary winding up does not require a special resolution.

  1. An administrator is appointed to realize a hierarchy of objectives. What is an administrator's first objective? a) To achieve a better result for the company's creditors as a whole than would be likely if the company were wound up. b) To realize property in order to make a distribution to one or more secured creditors. c) To rescue the company as a going concern. d) To wind the company up and distribute the assets to persons entitled to them.
  2. X took a life insurance policy on January 2, 2023 with his wife as the beneficiary upon his death. In the application, X answered in the negative question of whether or not he was hospitalized in the past five (5) years prior to the application for insurance. X died of leukemia on October 1, 2025. Which of the following statement is correct? a. The insurer is liable because the death occurred more than two (2) years from the date of issue of the life insurance policy. b. The insurer is liable because the concealment is not material. c. The insurer is not liable because the death occurred more than two (2) years from the date of issue of the life insurance policy. d. The insurer is not liable because the concealment, being material, is not subject to the incontestability clause in life insurance.
  3. Which of the following statements relative to a policy of insurance is false? a. The policy must be in printed form except group insurance and group annuity which may be typewritten. b. The policy does not have to be signed by the insured except where warranty contained in a separate document. c. In case of conflict, the stipulations in the policy shall prevail over those contained in the rider. d. A cover note binds the parties to an insurance contract prior to the issuance of the policy.
  4. Which of the following items need not be contained in a policy of insurance? a. The amount to be insured in an open policy. b. The interest of the insured who is not the absolute owner of the property insured.

c. The risks insured against. d. The period of coverage of the insurance

  1. X insured his building against fire for P5,000,000. The building was totally destroyed by fire. Its value was determined at the time of loss to be P3,000,000 and so this was the amount recovered by X. What kind or type of insurance policy was taken by X? (CPALE May 2024) a. Open policy b. Valued policy c. Running policy d. None of the foregoing
  2. One of the following is not a characteristic of a warranty in insurance policies? a. A warranty may relate to the past, present or future. b. A warranty may be implied in life and fire insurance. c. Breach of warranty which is not coupled with fraud entitles the insured to a return of premiums paid. d. A warranty has to be strictly complied with.
  3. The insured is not entitled to a return of premiums paid where: a. The insured has paid the premium in advance and the loss occurs before the effectivity date of the policy. b. The insured surrenders the life insurance policy. c. The agent of the insurer is guilty of fraud or misrepresentation. d. There is over-insurance by double insurance.
  4. The insurer is not liable under a fire insurance policy where: a. The fire that originated from an adjacent building caused the "Ipg" tank in insured house to explode. b. The "lpg" tank in an adjacent building that exploded caused fire to the insured house. c. The "lpg" tank in an adjacent building that exploded caused fire to the insured house, explosion being an excepted risk in the policy. d. The appliances in the insured house were damaged due to mishandling in an attempt to rescue them from the fire.
  5. Which of the following incidents is a friendly fire absolving the insurer under the fire insurance policy? a. Fire burning on a stove was too high due to ignorance of the maid, causing damage b. Small fire set on garbage was blown by sudden gush of strong wind setting fire on a nearby house.
  1. Which of the following statements relative to reinsurance is correct? a. The reinsurer will only pay the insurer after the latter has paid the insured in case of loss. b. The original insured has an interest in the contract of reinsurance. c. Non-life insurance companies are required by law to take reinsurance when they assume a risk on any one subject in an amount exceeding twenty per centum (20%) of their net worth. d. None of the foregoing.
  2. Marine insurance excludes insurance against loss or damage to: a. Aircraft b. Bridges c. Jewelry d. None of the foregoing
  3. Which of the following statements relative to marine insurance is false? a. Goods that are shipped on deck are generally not covered by a marine insurance policy. b. Loss or damage arising from perils of the sea will exonerate the insurer from liability under a marine insurance policy. c. Floater policies cover jewelry and other precious items wherever they may be situated subject to boundary limits fixed in the policy. d. None of the foregoing.
  4. Which of the following statements relative to marine insurance policies is true? a. An "all risks" marine insurance policy covers all losses during the voyage, provided they arise only from a maritime peril. b. An "inchamaree clause" in a marine insurance policy does not cover loss or damage to the hull or machinery arising from the negligence of the captain or crew. c. A "lost or not lost" provision in a marine insurance policy means that the insurer expressly binds itself in the event of loss of the vessel, even if the vessel should already be lost at the time the contract was entered into. d. A "floater policy" covers jewelry, works of art and other valuable personal property which must be moved from one place to another as a condition for the insurer's liability in case of loss or damage.
  5. Which of the following damages and expenses constitutes general average? a. Jettisoning cargo in order to save the vessel from sinking. b. Damage to the cargo when it was unloaded. c. Additional compensation of the crew when the vessel was detained by the authorities for suspicion of unlawful venture.

d. None of the foregoing.

  1. X owns a building with a fair market value of P 4,000,000. He took several fire insurance policies on the property as follows: Insurer Insurance Taken Premiums Paid ABC Ins. P 1,000,000 P 1, XYZ Ins. 7,000,000 8, TOTAL =P 8,000,000 P 9, The building was completely burned to the ground by hostile fire. X may recover the amount of: a. P1,000,000 from ABC Insurance P7,000,000 from XYZ Insurance. b. P2,000,000 from ABC Insurance and P2,000,000 from XYZ Insurance. c. P4,000,000 from either ABC Insurance or XYZ Insurance. d. P4,000,000 from XYZ Insurance.
  2. Assume the same facts in Q. 30. The portion of the premiums to be returned to X by the insurers as a result of the over- insurance shall be: a. P500 from ABC Insurance and P4,000 from XYZ Insurance. b. P125 from ABC Insurance and P1,000 from XYZ Insurance. c. P3,000 from XYZ Insurance. d. P 0
  3. Under the Financial Rehabilitation and Insolvency Act (FRIA), a creditor has adequate protection over the property securing its claim where: a. The debtor fails or refuses to honor a pre-existing agreement with the creditor to keep the property insured. b. The debtor fails or refuses to take commercially reasonable steps to maintain the property. c. The property has depreciated to an extent that the creditor is under secured. d. None of the foregoing.
  4. The verified petition filed with the court for a Pre-Negotiated Rehabilitation Plan must be endorsed or approved by: (CPALE May 2023) a. Creditors holding at least 2/3 of the total liabilities of the debtor b. Secured creditors holding more than 50% of the total secured claims of the debtor and unsecured creditors holding more than 50% of the total unsecured claims of the debtor. c. Both (a) and (b). d. Neither (a) nor (b).