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Philippine Bar review · Question

Practice question: Payment of Balance of Subscription

Multiple Choice Hard

Practice question

Dana has a P100,000 unpaid subscription. A valid contract-consistent board call requires P20,000 on August 1. Dana pays nothing that day and argues that the other P80,000 cannot become payable because only one fifth was called. Which is correct under Section 66?
  1. Failure on the specified date makes the entire unpaid P100,000 balance due, with applicable interest
  2. Only P20,000 can ever be collected
  3. The corporation forfeits the remaining P80,000
  4. The subscription automatically turns into a donation
  5. Dana alone may suspend the call

Legal references

  • RA11232, Section 66: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html

Answer this question in flashcards to review your response and continue practicing.