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MTE AE 3

Total questions: 60

Worksheet time: 2hrs 36mins

Name
Class
Date
1.

A contract of case is not

a)

A consequent contract

b)

A real contract

c)

A reciprocal

d)

An onerous and commutative contract

2.

Which of the following cannot be an object of a contract of sale?

a)

Sale of credit

b)

Young criminal not yet conceived at the time of perfection

c)

Land which the seller expects to buy

d)

Future inheritance

3.

The sale of an expected thing

a)

Dacion en pago

b)

Payment by cession

c)

Emptio spei

d)

Emptio rei-speratae

4.

This is not an essential element of a contract of sale

a)

Subject matter which should be determine

b)

consent of the contracting parties

c)

Warranty against eviction

d)

Consideration which is certain in money or its equivalent

5.

A sold to B his car and promised to deliver ten days later. The next day, after the sale to B, A sold the same car to C and immediately effected delivery. On the day agreed upon, A did not deliver the car to B.

Which is correct?

a)

B can cancel the contract between A and c, because the contract between A and B was perfected ahead of the contract between A and C

b)

B should make a demand to make A in default

c)

   A is liable to B for the value of the car plus damages after B makes a demand

d)

  A is liable to B for damages and is in in default without need of any demand

6.

A sold his motor vehicle to B who bought it for P200,000. It turned out however, that A has 2 motor vehicles: Toyota valued at  P230,000 and Lancer valued at P220,000. Which is correct?

a)

There is no contract of sale between A and B

b)

The parties may ask for interpretation or reformation

c)

The parties can ask for annulment of the contract

d)

B may choose between the Toyota or Lancer

 

7.

In contract of sale, if the price is absolutely simulated, the sale is

a)

Unenforceable

b)

Voidable

c)

Void

d)

Rescissible

8.

A offered to sell for P12,000,00 her house and lot to B who was interested in buying the same. In her letter to B, A stated that she is giving B a period of one month within which to raise the amount and that as soon as B is ready, they will sign the deed of sale. Five days before the expiration of the one month period.  A went to B and told her that she is no longer willing to sell the property unless the price is increased to P15,000,000. Which is correct?

a)

B may compel A to accept the P12,000,000 first offered

b)

A may compel B to pay P 15,000,000

c)

A and B should shoulder the P3,000,000

d)

B cannot compel to A to accept the P12,000,000 first offered

 

9.

If immovable property should have been sold to different vendees, the ownership shall be transferred to the person

a)

Who have first taken possession in good faith

b)

Who presents the oldest title in good faith

c)

Who in good faith first recorded it in the Registry of Property

d)

Who have paid in good faith the purchase price in full

10.

A, 17 years old, sold to B, of legal age, her necklace worth P20,000 for P15,000. Later, B sold the necklace to C for P20,000. Which of the following statements is correct?

a)

A has got a voidable title because at the time of sale, she is a minor.

b)

A can ask for rescission of the sale to C because she suffered a lesson of more than ¼ of the value of the property

c)

If C is In bad faith, C becomes the owner of the necklace upon delivery to him but his title is voidable

d)

a can risk for the annulment of sale to C because at the same time of sale she is a minor

11.

A owns 50 mango trees bearing fruits, ready for harvest. She told all the fruits of all the trees to B who paid P100,000. A told B that he can harvest fruits anytime he likes and pointing at the mango trees. For legal purposes, A has fulfilled her obligation to deliver the mango fruits to B by.

a)

Traditio brevi-manu

b)

Traditio symbolica        

c)

Traditio longa-manu

d)

Tradito constittum possessorium

12.

Ownership of the thing sold is

a)

Retained by the seller in ‘sale or return’

b)

Transferred to the buyer upon constructive or actual delivery of the thing sold

c)

Acquired by the buyer upon perfection of the contract

d)

Transferred to the buyer upon acceptance of the price

13.

Y sold his horse to Z for P50,000. No payment has yet been made and the sales document does not provide the date of delivery. Before delivery and payment the horse gave birth to a baby horse, which is correct?

a)

Z is entitled to the baby horse which was born after the perfection of the contract

b)

Y is entitled to the fruit (baby horse) as Z has not paid the price yet

c)

Y is entitled to the baby horse because it was born before his obligation to deliver arises

d)

Z should pay additional amount for the baby horse to entitled to it

14.

A seller sold to a buyer a piece of jewelry at a price of P20,000. The contract provides that the buyer will pay the seller cash P8,000 and for the balance, the buyer will give the seller a micro oven worth P12,000. What is the nature of the contract?

a)

Sale

b)

Partly sale and partly barter

c)

Barter

d)

Commodatum

15.

Statement 1: If two or more animals are sold together, whether for lump sum or for a separate price for each of them, the redhibitory defect of one shall give rise to the redhibition of the others.

 

     Statement 2: There is no warranty against hidden defects of animals sold at fairs or at public auctions or of livestock sold as condemned.

a)

Both are true

b)

Both are false

c)

   only the first is true

d)

     only the second is true

16.

  Elements of contracts of pledge and mortgage, except

a)

     Pledgor or mortgagor must be the absolute owner

b)

    Pledge or mortgagor must have the free disposal of the thing pledged

c)

    The thing pledged or mortgaged may be appropriated if the debtor cannot pay

d)

a.     Pledge and mortgage are accessory contracts

17.

    A borrowed P100,000 from B with A’s ring given to B by way of pledge. It was stipulated that in case of non-payment on due date, the ring would belong to B. This forfeiture is

a)

Caveat emptor

b)

Dacion en pago

c)

pactum commisorium

d)

   pacto de retro

18.

  A borrowed P100,00 from B, and as security. A pledge his ring to B. after the obligation fails due, A goes to B relinquishing ownership of the ring in favor of B. This is

a)

Caveat emptor

b)

Dacion en pago

c)

pactum commisorium

d)

pacto de retro

19.

    A borrowed P30,000 from B, and as security, he pledged his ring, pair or earings and necklace. On due date, A paid P20,000. As a result,

a)

  A can demand the return of one (1) of the things pledged

b)

     A can demand the return of any two(2) of the things pledged.

c)

   A can demand the return of the ring.

d)

A cannot demand the return of any the things pledged.

20.

  Which of the following is not correct as regard pledged and mortgage?

a)

  The creditors can foreclose the things pledged or mortgaged in case of non-payment of the obligation

b)

    The things pledged or mortgaged are delivered to the creditors to secure the fulfillment of the obligation

c)

    In case of default, the creditors cannot appropriate the things pledged or mortgaged even if stipulated

d)

   A pledge or mortgage cannot exist without a valid obligation

21.

  In real estate mortgage, the mortgagor can sell the property mortgaged

a)

  Only if with oral consent of the mortgagee

b)

    Only if with the written consent of the mortgagee

c)

     If not prohibited to sell

d)

   Even without the consent of the mortgagee

22.

    Which of the following statements is true?

a)

Any stipulation in a correct of pledged authorizing the pledgee to sell the thing pledged if the pledgor cannot pay is void

b)

    In mortgage, the mortgagee is entitled to the entire proceeds of the sale of the thing mortgaged

c)

In mortgage and in pacto de retro sale, the title to the property which is the subject matter of the contract is

Transferred to other party

d)

    Real estate mortgage is an accessory contract

23.

    A mortgaged his residential land to B as a guarantee for the payment of P400,000 obligations to B. they agreed that A should not sell the land while the obligation exists. Before the maturity of the mortgage, C offered to buy the land from A. which is correct?

a)

    A cannot sell the land to C because of the agreement not to sell

b)

    A can sell the land to C only if B consents in writing

c)

  A can sell the land to C despite the agreement not to sell

d)

    A cannot sell the land to C unless A pays the obligation

24.

   S, a minor, sold her bracelet to B for P8,000. Later, B, needing money to pay her daughter’s tuition fee, borrowed P15,000 from C and as a security, pledged the bracelet to the latter. B failed to pay C resulting into the auction sale of the bracelet in favor of D for P10,000 only. Which of the following statements is correct?

a)

   The title of B over the bracelet is not valid, hence the pledge, as well as the sale of said bracelet is likewise defective. The pledgor must be the owner of the thing pledged.

b)

  The deficiency of P5,000 may still be recovered by C from B if there is a stipulation to this effect.

c)

  C can no longer recover the deficiency of P5,000 from B.  The pledge, together with the sale is valid.

the voidable title of B is valid because it is not annulled.

d)

   If D was a purchaser in bad faith as he knew of the defective title of B over the bracelet, ownership will not pass to him (D).

25.

 1. The creditor cannot appropriate the things given by way of pledge or mortgage, dispose them, except if there is a stipulation to contrary.

    

2.    The indivisibility of a pledge or mortgage is affected by the fact that the debtors are solidarily liable.

a)

Both true

b)

both are false

c)

only the first is true

d)

  only the second is true

26.

1.       A pledge or mortgage is indivisible except if the debt may be divided among the successors in interest of the debtor or of the creditor.    

2.       In case of pledge of animals, their offspring shall pertain to the pledgee of the animals

a)

Both true

b)

both are false

c)

only the first is true

d)

only the second is true

27.

1.      The creditor can use the thing pledged even without the authority of the pledgor.

           2.     If through the negligence or willful act of the pledgee, the thing pledged is in danger of being lost or impaired, the pledgee may cause the same to be sold at a public auction.

a)

Both true

b)

both are false

c)

only the first is true

d)

only the second is true

28.

1.        If the thing pledge is returned by the pledgee to the pledgor or owner, the pledge is extinguished, except if there is a stipulation to the contrary.

            2.        if subsequent to the perfection of the pledge, the thing is in the possession of the pledgor or owner there is a conclusive presumption that the same has been returned by the pledgee. 

a)

Both true

b)

both are false

c)

only the first is true

d)

only the second is true

29.

    A statement in writing by the pledgee that he renounces or abandons the pledge is sufficient to extinguished the pledge only if a accepted by the pledgor or owner and the thing pledged is returned.

         At the public auction, the pledgee may also bid and his offer shall be valid even if he is the only bidder.

a)

Both true

b)

both are false

c)

only the first is true

d)

only the second is true

30.

1.      The sale of the thing pledge shall extinguish the principal obligation provided the proceeds of the sale are equal to the amount of the principal obligation.

 

2.  if the price of the sale is more than the amount of obligation, the debtor shall be entitled to the excess, unless it is otherwise agreed.

a)

Both true

b)

both are false

c)

only the first is true

d)

only the second is true

31.

    On day 1, A appointed B as his agent covered by a general power to lease his car to Z for eight months. On day 2, A appointed C as his agent covered by a special power to lease the same car for two months. On day 3, A directly transacted business with Z, leasing the car for two months. Which is correct?

a)

The appointment of B is valid because it is covered by general power

b)

     The appointment of C is valid because it is covered by a special power

c)

   The appointment of B and C are considered revoked because the principal directly transacted with Z

d)

The appointment of B is valid because it is the earliest appointment

32.

  Which of the following is correct?

a)

   A contract of agency must be in writing to be a valid agreement

b)

   A sale of personal property made by an agent without authority from the owner is void

c)

   A sale of a piece of land made by an agent with oral authority from the owner is void

d)

    An unemancipated minor cannot be appointed as agent

33.

   In which of the following acts may a person not appoint an agent?

a)

  To represent the principal in a wedding ceremony where the principal is a principal sponsor

b)

    To vote for the principal during the meetings of stockholders where the principal is a stockholder

c)

To represent the principal in a baptismal ceremony where the principal is the father of the child to be baptized

d)

   To attend a meeting of the board of directors of a corporation where the principal is a director

34.

   Not a fundamental obligation of the agent

a)

   Sacrifice his interest and give it to the principal if there is a conflict

b)

   To render an accounting of the transaction

c)

   Should not carry out the agency even if that is the instruction, if he knew it would result in a loss or damage to the principal

d)

  Can be the borrower if he is authorized to lend

35.

    A appointed B as his agent to sell his car for P250,000 but B acted in his own name. After delivery, C inspected the car and she found hidden defects in the car. Is A, as principal, liable to C even if B acted in his own name?

a)

  No, applying “caveat emptor” or let the buyer beware

b)

Yes, because this is a contract involving property belonging to the principal

c)

   No, because the contract of sale is between B and C

d)

   Yes, if C was aware of the hidden defects.

36.

   To improve the financial condition of his principal, an agent with general powers of administration given to  him by the principal in writing, sold two parcels of land, one for less than the price appearing in the inventory prepared by the principal and the other for double the price the that appeared in the aforesaid inventory. Which is correct?

a)

  Both contracts cannot be enforced against the principal

b)

    Both contracts are binding upon the principal

c)

  The sale for double the price appearing in the inventory is binding upon the principal

d)

  The sale for less than the price appearing in the inventory is binding upon the principal

37.

  Not a mode of extinguishing an agency

a)

     Accomplishment of agency

b)

   Death of the principal, and the agency is for the interest of either the principal or agent

c)

    Insanity of the principal or agent

d)

   Dissolution of the firm or corporation which entrusted or accepted the agency

38.

   Agency can be revoked at will

a)

   When a bilateral contract depends upon it

b)

   If it is the means of fulfilling an obligation already contracted

c)

   If a partner is appointed managing partner in the articles of partnership and his removal is unjustifiable

d)

   When the principal directly manages the business entrusted to the agent

39.

   In agency, the agent represents

a)

   A person who is capacitated

b)

   A person who is incapacitated

c)

   Heirs and creditors of the estate

d)

   The judicial court

40.

   When a sale of a piece of land or any interest therein is through an agent, the authority of the latter shall be in a public instrument, otherwise the sale shall be void.

 Agency is presumed to be with compensation unless there is proof to the contrary.

a)

Both are true

b)

Both are false

c)

Only the first statement is true

d)

    Only the second statement is true

41.

   1.     A special power to sell includes the power of mortgage and a special power to mortgage includes the power to sell.

       2.  Should there be a stipulation that the agent shall advance the necessary funds, he shall be bound to do so even when the principal is insolvent.

a)

Both are true

b)

Both are false

c)

Only the first statement is true

d)

    Only the second statement is true

42.

   1.    If the agent has been empowered to borrowed to borrow money he may himself be the lender at the current rate of interest and if he has been authorized to lend money at interest, he can borrow it.

 2. Every agent is bound  to render an account of his transactions and to deliver to the principal whatever he may have received by virtue of  the agency even though it may not be owing to the principal.

a)

Both are true

b)

Both are false

c)

Only the first statement is true

d)

    Only the second statement is true

43.

   1.  The responsibility of two or more agents who have been appointed simultaneously is solidary.

2. When two or more principals have granted a power of attorney for a common transaction, any one of them may revoked the same provided it is with the consent of the others.

a)

Both are true

b)

Both are false

c)

Only the first statement is true

d)

    Only the second statement is true

44.

  1. The limits of the agent’s authority shall be considered exceeded even if it have been performed in a manner more advantageous to the principal than that specified by him.

          2.   If the agent acts in his own name, he is directly bound as if the transaction were his own and that the contract shall not be valid between the principal and the third party.

a)

Both are true

b)

Both are false

c)

Only the first statement is true

d)

    Only the second statement is true

45.

 1. In the execution of agency, the agent shall observe the diligence of a father of a good family.

2. In case a person declines an agency, he is bound to observe ordinary diligence in the custody and preservation of the goods forwarded to him by the owner until the latter should appoint an agent.

a)

Both are true

b)

Both are false

c)

Only the first statement is true

d)

    Only the second statement is true

46.

 1. Every stipulation exempting the agent from the obligation to render an account shall be void.

2. The agent and the principal must be both capacitated.

a)

Both are true

b)

Both are false

c)

Only the first statement is true

d)

    Only the second statement is true

47.

Statement 1- the agent should finish the business already begun on death of the principal should delay entail any danger

            Statement 2 – the agent may appoint a substitute if he was given the power to appoint one but he should be responsible for the acts of the substitute

a)

Both are true

b)

Both are false

c)

Only the first statement is true

d)

    Only the second statement is true

48.

It is a contract wherein a person binds himself to render some service in representation or on behalf of another, with the consent or authority of the latter

a)

Agency

b)

Contract of service

c)

Contract of piece of work

d)

    Partnership

49.

   Which of the following refers to a contract of agency, except;

a)

    He represent an incapacitated person

b)

   There is no meeting of minds

c)

    He is controlled by the principal

d)

   The legal relation is always created by law

50.

    The following are characteristics of a contract of a agency, except:

a)

Consensual

b)

    Principal

c)

Innominate

d)

    Bilateral

51.

The patent law has a three-fold purpose. Which is not one of the purposes?

a)

The patent law seeks to foster and reward invention.

b)

It promotes disclosures of inventions to stimulate further innovation and to permit the public to practice the invention once the patent expires.

c)

The stringent requirements for patent protection seek to ensure that ideas in the public domain remain there for the free use of the public.

d)

It seeks to promote and advertise the invention.

52.

The element of ____________________  is an essential requisite of the patentability of an invention or discovery. If a device or process has been known or used by others prior to its invention or discovery by the applicant, an application for a patent therefor should be denied; and if the application has been granted, the court, in a judicial proceeding in which the validity of the patent is drawn in question, will hold it void and ineffective.

a)

Inventive step

b)

Novelty

c)

Industrially applicable

d)

Prior Use

53.

I. It has been repeatedly held that an invention must possess the essential elements of novelty, originality and precedence, and for the patentee to be entitled to the protection the invention must be new to the world.

II. The burden of proving want of novelty is on him who avers it and the burden is a heavy one which is met only by clear and satisfactory proof which overcomes every reasonable doubt.

a)

Only I is true

b)

Only II is true

c)

Both are true

d)

Both are false

54.

A patentable invention may be or may relate to:

a)

A product

b)

A process

c)

Computer-related

d)

All of the above inventions

55.

Which of the following is non patentable?

a)

aesthetic creations

b)

salt lamp technology

c)

car driven by water engine

d)

solar technology

56.

If two or more persons have made an invention separately and independently of each other, who shall own the right to the patent?

a)

    The first person who invented the technology.

b)

The person who filed an application for registration for such invention.

c)

The first person who mass produced the technology

d)

The first person who presented the technology to a convention

57.

   It is an intellectual property that refers to the name or designation identifying or distinguishing an enterprise.

a)

    Distinguishing name

b)

   Tradename

c)

  Patent

d)

a.     Copyright

58.

   What is the legal term of a patent that gives its owner the exclusive right to use the covered invention?

a)

      20 years

b)

  10 years

c)

    15 years

d)

    25 years

59.

    Which of the following is NOT a requisite of a patentable invention?

a)

  It must involve a technical solution to a problem in any field of human activity

b)

   It must involve inventive step

c)

    It must be industry applicable

d)

    It must be made by a scientist

60.

    When is an invention considered new or novel?

a)

   When it forms part of prior art

b)

    When it does not form part of prior art

c)

   Both

d)

   Neither