Philippine Law on Sales

S orally offered to sell a certain diamond ring to B for P50,000. B accepted the offer and to prove that he was in earnest, he gave S P1,000. The parties agreed that the delivery of the ring and the payment of the price would be made 30 days later. On due date:

• S may collect from B P50,000.

• S may collect from B P49,000.

• S cannot enforce payment because the contract was not reduced to writing.

• S cannot enforce payment because there was no contract of sale yet.

The price in a contract of sale is certain, except:

• when the parties have fixed or agreed upon a definite amount.

• if the price is certain with reference to another thing certain.

• if the fixing of the price is left to the discretion of one of the contracting parties and the price fixed is not accepted by the other party.

• if the price fixed is that which the thing sold would have on a definite day or in a particular exchange or market.

O delivered certain goods to C, a common carrier, which issued to O a bill of lading stating that the goods are to be delivered to bearer. Without O's fault, the bill of lading was stolen by T who thereafter negotiated the document by mere delivery to H, a purchases for value and without notice of the defect in the title of T.

• The negotiation of the bill of lading by T to H is not valid because of T's defective title.

• The negotiation of the bill of lading by T to H is valid. T's defective title does not have any effect on the validity of the negotiation.

• H may not obtain delivery of the goods from C because H acquired whatever title T had over the document.

• H acquired title to the document but not to the goods.

The unpaid seller, in addition to his right to retain the goods while he is in possession of them, has the following rights, except the right:

• of stoppage in transitu.

• to resell the goods.

• to rescind the sale.

• to bid when the goods are resold.

The following statements are presented to you:

I. A bearer document of title if it is specially indorsed can be negotiated thereafter only by indorsement completed by delivery.

II. A bearer negotiable instrument if it is specially indorsed can be negotiated thereafter only by indorsement completed by delivery.

In your evaluation of the foregoing statements:

• Both statements are true.

• Both statements are false.

• Only I is true.

• Only II is true.

A contract for a piece of work is different from a contract of sale in that in a contract for a piece of work:

• the Statute of Frauds does not apply.

• the article object of the contract is manufactured or procured in the ordinary course of business.

• there is usually a stock which is kept on hand and made available to anyone.

• if the article is not available, there is no change or modification of it when it is ordered by the customer.

When there is a stipulation exempting the vendor from the obligation to answer for eviction and the vendee made the waiver with knowledge of the risks of eviction and assumed the consequences, such waiver is known as:

• waiver intencionada.

• waiver consciente.

• forfeiture of rights.

• surrender of rights.

Under the Maceda Law, in determining the number of installments paid by the buyer, the following payments are included, except:

• downpayments.

• deposits.

• option money.

• none of the foregoing.

D owed C P100,000. The debt is evidenced by a promissory note and secured by a mortgage of D's lot. Before due date, C assigned his credit right to T by executing a deed of assignment but without the parties informing D. On due date, T wento to D to collect the debt at which time D learned of the assignment.

• T cannot collect from D because the latter was not informed of the assignment at the time it was made.

• T can collect from D but if D cannot pay, T cannot foreclose the mortgage on the lot.

• T can collect from D but if D cannot pay, T can foreclose the mortgage which is deemed assigned together with the credit right.

• T can only go after C, the assignor, since the assignment was without D's knowledge.

The following are certain modes of acquisition of property:

I. Purchase

II. Dacion en pago

III. Succession

IV. Donation

Legal redemption is available when the transferee acquired the property through:

• I or II.

• III or IV.

• I or III.

• II or IV.