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WorksheetsREGBUS_ LAW ON SALES
Total questions: 105
Worksheet time: 53mins
A contract whereby one of the contracting parties obligates himself to transfer the ownership of and to deliver a determinate thing and the other to pay therefore a price certain in money or its equivalent is a contract of:
barter
sale
dacion en pago
mortgage
The following are the essential elements of a contract of sale, except:
consent of the contracting parties
subject matter which should be determinate
price which is certain money or its equivalent
warranty against eviction and against hidden defects
The following are the characteristics of a contract of sale, except:
principal, which means a contract of sale can stand by itself
real, which requires the delivery of the object of the contract of sale for its perfection
onerous, where rights are acquired in exchange of a valuable consideration
bilateral, which means that both parties are bound reciprocally to each other
One of the following characteristics of dacion en pago is also a characteristic of a contract of sale. Which is it?
There is a pre-existing credit
Obligations are extinguished
There is less freedom in fixing price.
Ownership of the object is transferred to the other party.
The following are characteristics of a contract of sale except for one which refers to payment by cession. Which characteristic refers to payment by cession?
There is no pre-existing credit.
The cause or consideration is the price.
There is more freedom in fixing the price
Assignee of the property acquires the right to sell the thing but not the owner thereof.
The following items pertain to either a contract of sale or contract to sell.
I. Ownership of the thing sold is transferred upon delivery.
II. Ownership of the thing is transferred to the buyer at some future time.
III. The risk of loss is on the buyer.
IV. The risk of loss in on the seller.
Based on the above data, which of the following is correct?
Items I and III pertain to a contract to sell.
. Items II and III pertain to a contract to sell.
tems II and IV pertain to a contract of sale.
Items I and III pertain to a contract of sale.
One of the following is not a requisite of the object of a contract of sale. Which is it?
It must be within the commerce of men.
. It must be licit.
It must be determinate or determinable.
Vendor must have the right to transfer the ownership of the thing at the time of sale.
The following items pertain to either emptioreisperati or emptiospei.
I. The sale of future thing.
II. The sale of hope or expectancy.
III. The sale of a present thing.
IV. The thing sold must come into existence
Based on the above information, which of the following is correct?
a. Items I and II pertain to emptioreisperati.
Items II and III pertain to emptiospei.
. Items II and III pertain to emptioreisperati.
Items III and IV pertain to emptiospei.
Santiago sells Bermejo 500 sacks of rice at P1,000 per sack from the stock then stored in the warehouse of Santiago. Unknown to the parties, the warehouse contains only 480 sacks of rice. What is the status of the contract between Santiago and Bermejo?
The sale is void since the quantity available is less than the quantity sold
The sale is valid up to 480 sacks of rice but void as to the deficiency of 20 sacks of rice.
The entire sale is valid up to 500 sacks of rice. Bermejo becomes the owner of the whole stock available and Santiago must deliver the deficiency of 20 sacks of rice.
The sale is valid up to 480 sacks of rice but rescissible as to the deficiency of 20 sacks of rice by reason of damage suffered by Bermejo.
Somera sells to Buenviaje at P50 per gallon 300 gallons of gasoline stored in his truck’s tank which unknown to the parties, contains 500 gallons gasoline. What is the status of the contract of sale between Somera and Buenviaje?
a. The sale is void because the quantity available is more than the quantity sold.
b. The sale is valid up to 500 gallons of gasoline. Buenviaje must pay for the additional 200 gallons of gasoline.
c. The sale is valid up to 300 gallons of gasoline. Buenviaje becomes the owner of 3/5 of the whole stock, while Somera becomes the owner of 2/5 of the whole stock.
d. The sale is rescissible because Somera will suffer lesion of more than ¼ of the value of the whole stock
San Miguel Corporation, which maintains a professional basketball team entered into a contract with Armstrong Rubber Company for the latter to provide a pair of rubber shoes to the former’s two imported basketball players, Charles Jordan and Michael Barkley. Armstrong Rubber Company was instructed to make a pair for either both players in case the company did not manufacture shoes of their size. No pair was, however, immediately available for both the players. Charles Jordan, who is 6’5” tall and wears size 12 rubber shoes, was given the following day from the 300 pairs that Armstrong was in the process of manufacturing for its customers at the time the orders were received. Michael Barkley, who is 7’ tall wears a size 16 shoes, was provided was provided three days later, with a pair that was specially made for him since Armstrong does not make shoes of his size. What kinds of contracts were entered into for the shoes provided to the two basketball players?
The contract for the pair of shoes provided to Charles Jordan is a contract for a piece of work, while that for Michael Barkley is a contract of sale
The contract for the pair of shoes provided to Charles Jordan is a contract of sale, while that for Michael Barkley is a contract for a piece of work.
Both contracts are contracts of sale.
Both contracts are contracts for a piece of work.
S and B entered into a contract whereby S transferred to B a specific car for the price of P200,000.00 while B gave to S P90,000.00 in cash and a diamond ring worth P110,000.00. The heading of the written contract signed by the parties reads “Contract of Sale”.
a. The contract is void because the intention of the parties is void since the value of the diamond ring is more than the monetary consideration
b. The contract is a valid contract of sale as intended by the parties regardless of whether the monetary consideration is more or less than the value of the property consideration
c. The contract is a valid contract of barter since the value of the property given is more than the monetary consideration. The intention of the parties is immaterial
d. The contract is partly a contract of barter and partly a contract of sale
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.
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
On January 1, S orally sold to B a specific ring for P450.00. The parties agreed upon that S shall deliver the ring to B on January 5, while B shall pay the price on January 7
The contract is perfected on January 5, when the ring is delivered by S to B
The contract is perfected on January 1, when the parties had a meeting of the minds on the object and the price.
The contract is perfected on January 7, when the price is paid, since both parties would by then have performed their obligations in the contract
There is no perfected contract because the sale was made orally
A sum of money paid, or a thing delivered upon the making of a contract for the sale of goods, to bind the bargain, the delivery and acceptance of which makes the final assent of both parties to the contract:
Option money
Earnest money
Reservation money
Reservation money
S orally offered to sell a certain diamond ring to B for P50,000.00. B accepted the offer and to prove that he was in earnest, he gave S P1,000.00. 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 P50,000.00.
S may collect from B P49,000.00.
S cannot enforce payment because the contract was not reduced to writing
S cannot enforce payment because there was no contract of sale yet.
On June 1, 2010, S sold to B 50 units of machines which were scheduled to arrive from Japan the following day on board the vessel “MT Nippon Maru”. The sale was evidenced by an invoice identifying each machine by serial number. Each machine was priced at P10,000.00. Unknown to the parties, 30 units were damaged beyond repair by seawater on May 31,2010. Based on the foregoing, which of the following statements is incorrect?
B may rescind the whole contract
B may demand delivery of the remaining 20 units and pay the price therefor.
S may require payment of the whole shipment from B since S was not aware at the time of sale.
S has no option to rescind the whole contract or require payment of the remaining 20 units.
It refers to the delivery of the thing sold from hand to hand in case of movables, or the taking of possession with respect to immovables, in the presence ad with the consent of the vendor
Actual or real delivery
Tradition constitutumpossessorium
Traditiolongamanu
Tradiiobrevimanu
On May 1, 2010, S sold to B through a private instrument 20 sacks of corn stored in the only warehouse of S. on May 10, 2010, S delivered the keys to the warehouse to
The delivery made by S to B is known as:
. constructive delivery by legal formalities
symbolic delivery by traditioclavium
traditiolongamanu
.Delivery of incorporeal property may be made through any of the following means, except:
execution of a public document.
placing the titles of ownership in the possession of the vendee.
use by the vendee of his rights, with the debtor’s consen
execution of private instrument.
One of the following statements on the transfer of ownership of the thing in “sale on trial” is incorrect. What is it?
Ownership of the thing is transferred to the vendee when he signifies his approval or acceptance to the vendor
Ownership of the thing is transferred to the vendee when he does an act adopting the transaction.
Ownership of the thing is transferred to the vendee if the time fixed for the return of the thing has expired and the vendee retains the thing without givng notice of rejection or acceptance to the vendor
Ownership of the thing is transferred to the vendee upon delivery
On March 1, 2010, S sold and delivered to B a television set for P10,000.00 “on sale or return” giving B up to March 16, 2010 within which to return the television set. On March 10,2010, the television set was burned through no fault of B. Based on the foregoing, which of the following statements is incorrect?
B must pay the price of the television set.
S must bear the loss since the time for the return of the television set had not yet expired.
The ownership of the television set was transferred to B upon delivery to him.
B must bear the loss of the television set.
.In one of the following cases, delivery of the goods to a carrier for the purpose of transmission to the buyer transfers ownership to the latter. Which one is it?
When by the terms of the bill of lading, the goods are to be delivered to the seller or his agent.
When by the terms of the bill of lading the goods are to be delivered to the order of the buyer or his agent but the seller retains the bill of lading.
When the seller draws a bill of exchange on the buyer for the price of the goods and transmits such bill of exchange and the bill of lading to the buyer to secure acceptance or payment of the bill of exchange and the buyer dishonors the bill of exchange.
When the owner does not reserve the right of possession or ownership of the thing sold upon delivery to the carrier.
In a contract of sale of personal property the price which is payable in installments, the vendor may exercise any of the following remedies, except to:
exact fulfillment of the obligation, should the vendee fail to pay any number of installments
cancel the sale, should the vendee’s failure to pay cover two or more installments.
foreclose the chattel mortgage on the property if the vendee’s failure to pay cover two or more installments and recover any deficiency after the foreclosure sale if they have stipulated it.
foreclose the chattel mortgage on the property if the vendee’s failure to pay cover two or more installments but he may no longer recover any deficiency after the foreclosure sale.
Baldomero bought a residential house and lot from Sta. Ana Realty for P250,000.00 giving a down payment of P10,000.00 and promising to pay the balance of P240,000.00 in 20 years in monthly installments of P1,000.00. After paying 72 installments, Baldomero defaulted in the payment of the 73rd installment and subsequent ones. Despite the grace period he had earned, he was not able to make any further payments. Accordingly, Sta. Ana Realty cancelled the sale. How much cash surrender value is Baldomero entitled to receive?
P45,100.00
P39,600.00
P36,000.00
. P41,000.00
S stole a ring belonging to O. Subsequently, the ring was offered for sale at a public auction where X, who was not aware that the ring was stolen, bought it. A few weeks later, O saw the ring and recognized it as his. Based on the foregoing information, which of the following statements is correct?
O may recover the ring from X without reimbursing X since O was unlawfully deprived of the ring.
O may recover the ring from X but he has to reimburse X since X acquired title to the ring.
O may no longer recover the ring even if he is willing to reimburse X
X did not acquire title to the ring since the auctioneer had no valid title thereto.
When the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale, the buyer acquires title to the goods. Such acquisition of title has the following requisites, except the:
buyer must have bought the goods in good faith
buyer must have bought them for value.
buyer bought them without notice of the seller’s defect of title
party from whom the seller obtained the goods must ratify the sale
An unpaid seller has the following rights, except:
a lien on the goods or the right to retain them for the price while he is in possession of them
in case of insolvency of the buyer, a right of stopping the goods in transitu after he has parted with the possession of them
a right of repurchase.
a right to rescind.
An unpaid seller losses his lien on the goods in the following cases, except:
when he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of ownership in the goods.
when the buyer or his agent lawfully obtains possession of the goods
when the seller waives his possessory lien.
when he has obtained judgment for the price of the goods.
Three of the following are the requisites in order that an unpaid seller may exercise his right of stoppage in transitu. Which one is not?
The seller is unpaid
The seller has not parted with the possession of the goods
The goods are in transit
The buyer is or becomes insolvent.
Goods are still in transit:
if the buyer or his agent obtains delivery of the goods before their arrival at the appointed destination.
when the carrier acknowledges possession of the goods as bailee for the buyer after the arrival of the goods at the place of destination.
if the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent
if the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them, even if the seller has refused to received them back.
An unpaid seller’s right to resell the goods is available in the following cases, except:
if the goods are of a perishable nature.
when the seller reserved the right to resell the good
when the buyer has defaulted in the payment of the price for an unreasonable time
when the seller has lost his lien on the goods
Barameda bought a piece of land from Sarmiento for a lump sum of P120,000.00. Aside from mentioning the boundaries in the contract which is required in the sale of real estate, the contract also states that the piece of land consists of 1,000 square meters. before delivery, Sarmiento discovered that the piece of land actually contains 1,200 square meters.
Sarmiento must deliver all the 1,200 square meters; Barameda must pay P120,000.00 plus an additional amount for the excess of 200 square meters.
Sarmiento is required to deliver only 1,000 square meters; Barameda must pay the contract price of P120,000.00
Sarmiento must deliver all the 1,200 square meters; Barameda has to pay only P120,000.00.
Neither party is required to perform the obligation because of mistake
Sison sold a registered piece of land to Bautista on May 1, 2010 in a public instrument. On May 3, 2010, Sison sold in a private instrument the same piece of land to Cruz, who took physical possession of the land. Neither of the buyers were aware of the sale made to the other
The land belongs to Bautista.
The land belongs to Cruz.
The land still belongs to Sison, because both sales are void.
The land should be divided equally between Bautista and Cruz to give effect to both sides.
Sison sold a registered piece of land to Bautista on May 1, 2010 in a public instrument. On May 3, 2010, Sison sold in a private instrument the same piece of land to Cruz, who took physical possession of the land. Neither of the buyers were aware of the sale made to the other.
Assume that on May 5, 2010, Sison sold the land in a public instrument to Domingo who was not aware of the two previous sales. Domingo then registered the sale with the Register of Deeds.
The land belongs to Bautista
The land belongs to Cruz.
The land belongs to Domingo.
The land will be equally divided among the three buyers.
On June 1, 2010, Sanchez sold to Borlaza in a private instrument a certain computer. Two days later, Sanchez orally sold the same computer to Contreras who immediately took possession of the computer. Neither party was aware of the sale made to the other.
The computer belongs to Borlaza.
The computer belongs to Contreras.
The computer belongs to Contreras.
Both sales are void. Accordingly, Sison will still be the owner.
This refers to the implied warranty on the part of the seller that he has the right to sell the thing at the time when ownership is to pass, and that the buyer from that time shall have and enjoy legal and peaceful possession of the thing.
Warranty against hidden defects
Warranty against eviction
Warranty of ownership
Warranty of possession
Three of the following are the requisites in order that the vendee may enforce the vendor’s liability in case of eviction. Which one is not?
There must be a final judgment depriving the vendee of a part or whole of the thing sold.
The vendee must have appealed from such judgment rendered against him.
The deprivation of the vendee is based on a right prior to the sale or an act imputable to the vendor
The vendor is notified of the suit at the instance of the vendee.
This refers to an encumbrance imposed upon an immovable for the benefit of another immovable belonging to a different owner.
Easement or servitude
Real estate mortgage
Pledge
Chattel mortgage
Three of the following are the requisites in order that the buyer may enforce the seller’s liability for hidden defects.
The defects of the thing sold must not be patent or visible.
The defects render the thing unfit for the use which it is intended, or which diminish its fitness for such use to such an extent that had the buyer been aware thereof he would not bought it.
The defects must be existing at the time of sale
The defects must be capable of determination by an expert.
Alessandra purchased from Rose Tan’s Department Store two pieces of imported identical bathrobe, one of which was embroidered with “HIS” and the other with “HERS”, which she planned to give to his friends Jules and Assunta as a wedding present. She inspected the items very carefully with the assistance of the store clerk before paying for them. While she was wrapping them shortly after she arrived home, she noticed that the hem of the “HERS” bathrobe had disintegrated because it was loosely sewn, which damage was not apparent because of the many colors of the apparel.
Alessandra can rescind the sale of both pieces of bathrobe.
Alessandra can rescind only the sale of the bathrobe marked “HERS”
Alessandra cannot rescind because she should have inspected the item well when she bought it.
Alessandra must pay for both pieces of bathrobe.
The vendor shall be liable for the death of the animal sold when the following requisites are present, except:
The disease existed at the time of sale.
The disease is the cause of the death of the animal.
The disease must be redhibitory.
The animal dies within 3 days from the time of purchase
The justified refusal of the buyer to accept the goods produces the following effects, except:
. buyer has no duty to return the goods unless otherwise stipulated.
title to the goods does not pass on to him.
buyer shall not be obliged to pay the price.
buyer is obliged to constitute himself as depositary until he returns the goods.
n three of the following cases, the buyer is not entitled to suspend the payment of the price. Which one will give him the right to suspend?
Disturbance in the possession or ownership of the thing purchased
The seller gives him security for the return of the price.
It has been stipulated that the buyer shall pay the price notwithstanding any disturbance
The disturbance is a mere act of trespas
A contract of sale with a right to repurchase and other contracts including a contract purporting to be an absolute sale shall be presumed to be an equitable mortgage in the following cases, except when the:
price of sale with right to repurchase is unusually inadequate
vendor remains in possession of the thing sold
period to repurchase the property is extended
grantee owns an urban land
An owner of a rural land has the right to legal redemption of an adjoining rural land sold if the following requisites are present, except when the:
adjoining rural land is not separated by any apparent servitudes for the benefit of other estates
adjoining rural land is not separated by any apparent servitudes for the benefit of other estates
grantee owns another rural land
grantee owns another urban land
This refers to the right of an adjoining owner of an urban land to be given preference to the purchase of a small piece of urban land which is held for speculation before it is offered for sale to others.
Right of subrogation
Right of redemption
Right of pre-emption
Right of repurchase
A, B, and C are co-owners of an undivided parcel of land. On May 1, A sold his share to X, on June 1, B sold his share to X; and on July 1, C sold his share to X. Each sale was with a right to repurchase.
X may compel A, B, and C to come to an agreement to repurchase the whole land.
Each co-owner may exercise his right of redemption on the whole property including the share of the other two co-owners.
Each co-owner may exercise his right of redemption only with respect to his share
Any two of the three co-owners may redeem the property proportionately.
R, S, and T are co-owners of an undivided parcel of land. R sold his 1/3 interest to T in a deed of absolute sale. Which is correct?
S may exercise his right of redemption on the interest sold by R to T.
S cannot exercise the right of redemption.
The sale made by R to T is voidable
S may redeem only ½ of the interest sold by R to T
T steals goods of O and deposits them in the warehouse of W. W issues to T a warehouse receipt which by its terms indicates, negotiates the receipt to H who purchases the document in good faith and for value.
H may obtain delivery of the goods from W because H was an innocent purchaser for value
H can obtain delivery of goods from W because the issuance of the warehouse receipt to T conferred a valid title to him over the goods
H can obtain delivery of the goods from W because the acquisition by H of the warehouse receipt in good faith cured the defect in T’s title
H cannot obtain delivery of the goods because he acquired whatever title T had over such goods, which is title of a thief
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 delivery to H, a purchaser 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 the goods
D obtained from C a loan amounting to P50, 000.00, the same being secured by a mortgage on D’s lot. Thereafter, C assigned his credit right to T with notice to D. Based on the foregoing facts, which of the following statements is incorrect?
T cannot collect from D if D does not give his consent to the assignment
T can collect from D. D’s consent to the assignment is not required.
T can collect from D and if D cannot pay, T can foreclose the mortgage on the lot.
The notice to D of the assignment is sufficient. D must make his payment to T and no longer to C.
A kind of mortgage which, although lacking some formality, form of words, or requisites prescribed by law, shows the intention of the parties to charge real property as security for debt and contains nothing impossible or contrary to law is known as
legal mortgage
equitable mortgag
conventional mortgage
voluntary mortgage
If a movable property is sold separately to two or more different vendees, ownership shall belong to the person:
who in good faith first paid the purchase price in full
who in good faith first recorded the sale in the Registry of Property
who in good faith presents the oldest titl
who in good faith first took possession of the property
A contract of sale is perfected upon:
compliance with the requirements of the law as to form
compliance with the requirements of the law as to form
the meeting of the minds on the thing which is the object of the contract and upon the price
demand
It is a contract by virtue of the terms of which the parties thereto promise and obligate themselves to enter into another contract at a future time, upon the happening of certain events, or the fulfillment of certain conditions.
Contract of adhesion
Contract of option
Contract of sale
Auto-contract
A contract of sale is not a:
principal contract
nominate contract
nominate contract
impossible service
The following may not be valid objects of a contract of sale, except:
objects outside the commerce of men
illicit things
future goods
impossible service
This is a kind of constructive delivery where the vendor remains in possession of the property sold, such as by virtue of a lease agreement with the vendee.
traditiolongamanu
traditiobrevimanu
traditioconstitutumpossessorium
delivery to common carrier
When the goods are delivered to the buyer, the ownership thereof passes to the buyer in
sale on approval
sale or return
sale on trial
contract to sell
S promised to sell his car to B for P200,000.00 giving B 30 days to decide. B accepted the promise of S and informed S that he (B) would make known his decision before the lapse of 30 days. He also gave S P2,000.00 as consideration so that S would hold on to his promise. The contract entered between S and B and the consideration given by B to S are known as:
Option contract and option money, respectively.
Contract of sale and earnest money, respectively
Contract of sale and down payment, respectively.
Contract to sell and reservation money, respectively
S promised to sell his car to B for P200,000.00 giving B 30 days to decide. B accepted the promise of S and informed S that he (B) would make known his decision before the lapse of 30 days. He also gave S P2,000.00 as consideration so that S would hold on to his promise. The contract entered between S and B and the consideration given by B to S are known as
S may withdraw his offer to sell before the lapse of 30 days by informing B
S may not withdraw his offer before the lapse of 30 days
S may withdraw the offer by returning the amount of P2,000.00 that was paid to him by B.
S may withdraw the offer even before the lapse of 30 days if a favorable price, i.e., more than P2,000.00, is offered to him by another prospective buyer.
The Recto Law applies to which of the following sale?
Sale of a care on straight term
Sale of house and lot on installment
Sale of car on installment where the buyer constituted a mortgage on his truck
Sale of a piano on installments where the buyer constituted a chattel mortgage on the piano
S sold to B a lot through a deed of absolute sale duly acknowledged before a notary public. Three days later, S sold the same lot to X, also through a deed of sale duly acknowledged before a notary public. X had the sale registered with the Register of Deeds. Neither B nor X was aware of the sale made by S to the other and neither took physical possession of the lot. Who is the present owner of the lot?
B, because he was the first purchaser in good faith
X, because he registered the sale in good faith
Neither B nor X
S, as long as he does not surrender physical possession of the lo
B purchased from S a laptop computer worth P100,000.00. the terms of sale provide for a down payment of P20,000.00 with the balance payable in 8 equal monthly installments. To secure the balance, S required B to execute a chattel mortgage on the laptop computer and a real mortgage on B’s lot. B complied with all the requirements but defaulted in the payment of the third and fourth installments. These remedies are available to S except one. Which is it?
Cancel the sale.
Exact fulfillment of the obligation.
Foreclose the real mortgage and thereafter recover any deficiency from B.
Foreclose the chattel mortgage and thereafter foreclose the real mortgage in case of deficiency
S and B entered into a contract whereby S transferred to B a specific piano for the price of P80,000.00, while B gave to S cash of P30,000.00 and a diamond ring worth P50,000.00. what kind of contract was entered into between S and B?
A contract of barter
. A contract of sale
The contract is partly a contract of barter and partly a contract of sale
The contract is an innominate contract because the intention of the parties cannot be determined.
One of the distinctions between option money and earnest money is that earnest money is:the consideration paid for the purpose of holding one to his promise to buy or sell a determinate thing for a certain period of time
the consideration paid for the purpose of holding one to his promise to buy or sell a determinate thing for a certain period of time
not part of the purchase price
proof of the perfection of the contract of sale
paid before the perfection of the contract of sale
This refers to the warranty of the seller that he has the right to sell the thing at the time when ownership is to pass, and which can be enforced if the buyer is deprived of the property sold by a final judgment in court.
Warranty against hidden defects
Warranty of merchantable quality
Warranty against eviction
Warranty of possession
P, who was in Hong Kong, made an overseas call to A, his friend, to sell P’s lot in Quezon City immediately as P needed cash. Accordingly, A sold the lot to B. the deed of sale was in a public document. The sale of P’s lot is:
valid
. rescissible
unenforceable
void
One of the distinctions between a contract of sale and a contract for a piece of work is that a contract for a piece of work:
s not governed by the Statute of Frauds
refers to a contract for the delivery of goods which are manufactured in the ordinary course of business although the same are not available.
has for its parties the vendor and the vendee.
has for its consideration the price of the thing.
A and B are co-owners of a rural lot not exceeding 1 hectare. The lot is surrounded on is four sides as follows: on the North, by the road; on the East, by the lot of X consisting of 2 hectares; on the South, by the lot of Y consisting of 2 ½ hectares; and on the West, by Z’s lot consisting of 2 ¾ hectares. A sells his undivided interest in the agricultural lot to T, who owns several hectares of rural land in the area. Who has the right of legal redemption over the undivided interest in the lot sold by A to T?
B
X
Y
Z
It is an affirmation of fact or any promise by the seller relating to the thing which has a natural tendency to induce the buyer to purchase the same, relying on such promise or affirmation
Condition
False representation
Warranty
Seller’s talk
In one of the following cases, the ownership of the object of the contract is transferred to the other party upon delivery.
Contract to sell
Agency to sell
Sale or return
Sale on approval
Under the “Realty Installment Buyer Act”, the buyer of real estate on installment payments may pay an installment defaulted without additional interest if he has paid at least two years of installments. The law is applicable to sales/transactions involving:
industrial lots
commercial buildings
residential lots
sales to tenants under the Land Reform Law
S, the owner of a rent-a-car business, leased one of his cars to B for one month. On the day of the expiration of the lease and while B was still in physical possession of the car, B offered to buy the car from S for P200,000.00. Believing the price to be a good one, S readily accepted B’s offer and then and there executed a deed of absolute sale in favor of B who immediately paid the price in cash. Thereafter, B drove away from the place of S
The delivery of the car by S to B is by constitutumpossessorium.
The delivery of the car by S to B is by traditiolongamanu.
The delivery of the car by S to B is by traditiobrevimanu
There was no delivery because B should have turned over the physical possession of the car to S upon the expiration of the lease so that S could make the proper delivery to him upon the execution of the contract of sale.
B called on S at the shoe factory of S for the latter to make a pair of shoes which B would be needing in the play “Romeo and Juliet”. B provided S with the description of the pair of shoes that he wanted since S did not manufacture the kind of shoes that B needed. S quoted a price of P1,000.00 which B agreed to pay upon delivery to him of the pair of shoes. Since S and B had been neighbors for a long time, their agreement was sealed with a handshake.
The contract between S and B becomes enforceable if S had already completed making the pair of shoes
The contract between S and B becomes enforceable if B had already paid the amount agreed upon for the work.
The contract between S and B is enforceable even if it is still executory.
The contract cannot be enforced by either party because it was not in writing.
Which of the following contracts of sale is void?
Oral sale of a piece of land made through an agent whose authority is in a public document.
Oral sale of a piece of land made through an agent whose authority is in a public document.
Sale of a piece of land in a private instrument made through an agent whose authority is in a public instrument.
Sale of a piece of land in a public instrument made through an agent whose authority is in a private instrument.
D deposited his goods in the warehouse of W who issued to D a warehouse receipt stating that the goods are to be delivered to bearer. Thereafter, A obtained possession of the warehouse receipt from D in exchange for what A claimed to be a bar of gold, which, however, was discovered by D to be fake. D demanded the return of the warehouse receipt from A but the same had already been negotiated by A to H who purchased the document for value, in good faith and without notice that D was deprived possession thereof by fraud. The negotiation by A to H is:
voidable
. valid
void
rescissible
B purchased a pair of leather shoes from the store of S. shortly after leaving the store, B decided to return and requested S, the owner, to place a protective rubber covering on the sole of each shoe. Since the job required at least 30 minutes to complete, B left the store of S to shop at the neighboring stores. When he returned to the store of S after 30 minutes, the pair of shoes was nowhere to be found. It turned out that C, a sales clerk, had sold the pair of shoes that B bought to X, another customer.
X acquired ownership of the pair of shoes earlier bought by B.
X did not acquire the ownership of the pair of shoes earlier bought by B
B remained the owner of the pair of shoes that he had bought despite its sale to X.
S reacquired ownership of the pair of shoes when it was brought to him for additional work.
S sold 500 shares of stock of San Manuel Corporation to B at P50.00 per share. The transfer of the ownership of the shares of stock may be made through any of the following means, except:
execution of the sale in a public instrument
the giving by S to B of the power to vote in the stockholder’s meeting of San Manuel Corporation and its actual exercise thereof by B
the endorsement by S of the stock certificate covering the 500 shares of stock and its placing it in the possession of B
the issuance by S of the official receipt for the full payment of the purchase price of the shares by B
Which of the following documents of title requires endorsement and delivery for its negotiation?
A warehouse receipt which states that the goods are to be delivered to bearer
A bill of lading which states that the goods are to be delivered to the order of a specified person but such person indorsed it in blank
A warehouse receipt which states that the goods are to be delivered to bearer but the bearer indorsed it to a specified person
A bill of lading which states that the goods are to be delivered to a specified person.
S and B executed a deed of absolute sale involving a parcel of land supposedly containing 2,000 square meters. B paid a lump sum of P2,200,000.00 for the purchase. Based on the foregoing facts, which of the following statements is correct?
If the parcel of land is actually 2,200 square meters in area, S has to deliver only 2,000 square meters thereof and B must pay P2,200,000.00 as agreed upon.
If the parcel of land is actually 1,800 square meters in area, S must deliver only 1,800 square meters and B has to pay only the price equivalent to 1,800 square meters
If the parcel of land actually contains 2,200 square meters, S must deliver all 2,200 square meters with B still paying the amount of P2,200,000.00
If the parcel of land actually contains 2,200 square meters, S must deliver all of 2,200 square meters but B must pay a proportionate amount for the additional 200 square meters in addition to the price of P2,200,000.00.
S sold a specific parcel of land separately to the following persons: on July 1, 2010, to X, in a public document; on July 5, 2010 in a private instrument to Y, who took physical possession of the land; and on July 9, 2010 to Z, who registered the sale with the Register of Deeds. Neither X, Y, nor Z was aware of the sale made to the other two buyers. Who is the owner of the parcel of land?
. X, because he was the first purchaser
Y, because he took physical possession
Z, because he registered the sale
S, because the multiple sales he made rendered each sale a void contract
In which of the following cases is the seller not obliged to make any payment to the buyer for breach of warranty against eviction?
When such warranty has not been agreed upon.
When there was no stipulation exempting the seller from liability.
When there was a stipulation exempting the seller (who was in good faith) from breach of warranty and the waiver was made by the buyer without the knowledge of the risks of eviction.
When there was a stipulation exempting the seller (who was in good faith) from breach of warranty and the waiver was made by the buyer with knowledge of the risks of eviction.
Mother Lily purchased from Santiago Farms four horses with different looks: a white, a gray, a black, and a brown, which Mother Lily intended to use in a movie to be starred in by four movie actors each one of whom represents one of the colors. Each horse was certified to be fit by the veterinarian who was hired by the parties to examine them. Mother Lily paid a separate price for each of the horses. During the filming of the movie, the brown horse was always sick and could not function as the three others. It was subsequently discovered that it was suffering from an incurable heart ailment.
Mother Lily may ask for the rescission of the sale of the brown horse only since she paid a separate price for each of the horses.
Mother Lily may ask for the rescission of the sale of all the horses
Mother Lily may not ask for rescission of the sale of any horse because she freely entered into the contract of sale.
Mother Lily is bound by the sale of all the four horses and must honor such contract because the veterinarian certified that all the horses were fit.
The buyer is obliged to pay interest for the period between the delivery of the thing sold and the payment of the price of the following cases, except if:
there is a stipulation to pay interest
there is no such stipulation but the thing sold produces fruits of income
the buyer is in default, from the time of judicial or extrajudicial demand for the payment of the price
none of the foregoing
Earnest money possesses three of the following characteristics. Which is the exception?
It is a part of the purchase price
It is proof of the perfection of the contract of sale
It is paid at the time of the perfection of the contract of sale
It is paid as a consideration for the purpose of holding one to his promise to buy or sell a determinate thing for a certain period.
S sold his farm lot to B with S reserving his right to repurchase the property within five years from the date of sale. Based on the foregoing facts, which of the following statements is incorrect?
The sale is subject to a suspensive condition
B may validly sell the lot to a third person against whom S may exercise the right to repurchase provided the right is registered.
B I subrogated to the rights and actions of S.
B’s ownership of the lot becomes irrevocable if S fails to exercise his right to repurchase within the period stated.
D borrowed P50,000.00 from C. the obligation is secured by a mortgage of D’s house and lot. Thereafter, C assigned his credit right to T. based o the foregoing facts, which of the following statements is incorrect?
The consent of D to the assignment is not required in order that T may collect from D.
The assignment of the credit right did not carry with it the assignment of the mortgage.
If D pays C before D was notified of the assignment, D is released from the liability
The assignment, to bind third persons, must be in a public instrument and recorded with the Registry of Property
A contract of sale possesses three of the following characteristics. Which is the exception?
Bilateral, since the parties are bound by reciprocal prestations.
Commutative, because he parties give almost equivalent values.
Onerous, since there is an exchange of valuable consideration
Real, because the object of sale must be delivered for the perfection of the contract.
S sold his lot to B reserving his right to repurchase the same within 5 years from the date of the execution of their agreement. The sale together with the right to repurchase was registered with the Register of Deeds. Two years after the execution of the sale, B sold the same lot to X who was not aware that S reserved his right to repurchase the lot.
The sale by S to B is subject to a suspensive condition.
The sale by S to B is subject to a resolutory condition.
The sale by S to B is subject to a condition which is neither suspensive or resolutory
The sale by S to B is absolute without any condition.
S sold his lot to B reserving his right to repurchase the same within 5 years from the date of the execution of their agreement. The sale together with the right to repurchase was registered with the Register of Deeds. Two years after the execution of the sale, B sold the same lot to X who was not aware that S reserved his right to repurchase the lot.
S may repurchase the lot from x within the five-year period although X was not aware of the reservation of the right to repurchase.
S may not repurchase the lot because X was not aware of the reservation of the right.
S may repurchase the lot from X if X was aware of such reservation
The sale by B to X is void because the acquisition of the lot by B from S is subject to a contingency
B wanted to buy the car of S for P100,000.00 and to show that he was in earnest, he gave to S P2,000.00 which S accepted. There was no written instrument signed by S and B to incorporate their agreement. Based on the foregoing, which of the following statements does not pertain to the contract?
B, thereafter, needs to pay P98,000.00
The giving of earnest money binds S and B to a contract of sale.
B, thereafter, must pay C the amount of P100,000.00
The contract between S and B is enforceable although there was no written agreement between them.
When the buyer is justified in refusing to accept the goods being delivered to him and has relayed such refusal to the seller, such refusal produces the following effects, except:
buyer has no duty to return the goods unless stipulated
title to the goods does not pass to the buyer
buyer is not obliged to pay the pric
buyer automatically becomes a depositary of 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 trasitu
to resell the goodsto bid when the goods are resold
to rescind the sale
to bid when the goods are resold
One of the following is a natural element of a contract of sale.
The price of the goods.
The goods sold.
The stipulation to pay interest on the purchase price of the goods
The seller’s warranty against hidden defects.
On January 1, 2010, Santos offered to sell his only diamond ring for P50,000.00 cash to Bersola who was interested in buying the same. Santos told Bersola that he was giving the latter up to January 31, 2010 to decide whether to buy the ring or not. Bersola agreed to the option and gave Santos option money of P500.00. On January 18, 2010, Santos found another buyer who was willing to pay P70,000.00 cash. Santos personally visited Bersola to inform him that he was withdrawing his offer unless Bersola agreed to buy the ring for P70,000.00.
Santos may validly withdraw the offer without being held liable for breach of contract since it would be unfair to him if he would receive only P50,000.00 as the price of his ring when another person is willing to buy it at a higher amount
Bersola is bound to pay P70,000.00 if he were to avail himself of his option to buy the ring.
Santos cannot withdraw the offer because the option is founded upon a consideration of P500.00
. Bersola needs to pay only P49,500.00 if he decides to buy the ring since the option money of P500.00 that he paid forms part of the purchase price.
S and B executed a deed of absolute sale duly acknowledged before a notary public whereby S conveyed his car to B for P100, 000.00. B, however, informed S that he would be going away on a business trip and that he would be taking the car from the place of S when he returned after two weeks. Three days after the sale of the car to B, S sold the same car to X through a deed of absolute sale which was also acknowledged before a notary public. X then drove the car away from the place of S and had the sale recorded with the Land Transportation Office which issued to him a certificate of registration of the car in his name. Neither B nor X was aware of the sale made to the other until B returned from his business trip.
Preference shall be given to B since the car was first sold to him
X did not acquired title to the car because S was no longer the owner when the sale was made to him.
X acquired title to the car because S appeared to be the owner in the record of the Land Transportation Office.
S remained the owner of the car because the sale made to one buyer nullified the sale to the other
D gives his ring worth P25,000.00 to C in consideration of C’s giving of P10,000.00 and a bracelet worth P15,000.00 to D. Based on the foregoing facts; which of the following statements is incorrect?
The transaction between D and C is a sale if they intended it to be a contract of sale
The transaction between D and C is a barter if they intended it to be a contract of barter
The transaction is barter regardless of the intention of the parties because the bracelet is of more value than P10,000.00
The transaction is barter if the intention of the parties cannot be determined
S, the proprietor of a rent-a-car enterprise, sold his business and his fleet of 10 cars to B for lump sum of P3, 000,000.00.S physically delivered the permits and other papers for the operation of the business and the vehicles to B at the latter’s office except for one car which the parties agreed shall be leased by S for one month while he was winding up his affairs in the Philippines as he was then leaving for abroad. In the meantime, the contract of sale and contract of lease, though already signed by the parties, have not been acknowledged before a notary public, and hence, were still private instruments.
The ownership of the car leased by S remained with S.
The ownership of the car leased by S has been transferred to B although there was no physical delivery thereof to B.
The execution of the private instrument for the sale of the business and the cars likewise transferred the ownership to B of the car leased by S.
Both the contract of sale and the contract of lease must be acknowledged before a notary public by the parties before the ownership of the car lease by S is transferred to B.
King Gems Company, a jewelry manufacturer, shipped five dozen necklaces to Queen Jewelry Store. The shipment was made under a written agreement allowing Queen Jewelry Store to return the necklaces within a period of one month from delivery. Based on the foregoing facts, which of the following statements is incorrect?
Title to the necklaces passed to Queen upon delivery
. If Queen does not return the necklaces within one month, the sale to it becomes absolute.
If the necklaces are destroyed by fire without the fault of Queen, Queen need not pay the price thereof.
If the necklaces are destroyed through the fault of Queen, Queen must pay the price thereof to King Gems Company.
On January 3, 2010, D deposited his goods with W, warehouseman, who issued a warehouse receipt which states that the goods are to be delivered “to the order of D”. On January 5, 2010 D indorsed the receipt to A. On January 8, 2010, however, D sold the goods represented by the receipt to X who informed W immediately of the sale to him of the goods by D. at that time, W was not aware that D had indorsed the receipt to A
A acquired the title to the goods as represented by the receipt at the time such receipt was indorsed to him.
X acquired title to the goods because at the time of the sale to him, W, warehouseman was not yet aware that D had indorsed the receipt to A.
D retained ownership of the goods because he cannot indorse the receipt to one person and sell the goods to another.
W will be bound to deliver the goods to X
One of the following statements pertaining to a sale by auction is incorrect. Which is it?
A sale by public auction is perfected when the auctioneer announces its perfection by the fall of the hammer, or in any other manner.
Before perfection, any bidder may retract his bid
Before perfection, the auctioneer may withdraw the goods unless the auction was announced to be without reserve
The seller may validly participate in the bidding without prior notice to the bidders.
S sold a laptop computer to B for P120,000.00 with B giving a down payment of P10,000.00 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:
exact fulfillment of the obligation
cancel the sale
foreclose the chattel mortgage and recover any deficiency during the foreclosure sale if there is an agreement to that effect.
foreclose the real mortgage and recover the deficiency during the foreclosure sale even if there is no agreement to that effect.
B bought from Century Properties, Inc. a 1,000 square meter lot located beside the Manila International Airport on which he intended to construct a warehouse condominium. The terms of the sale provided for the payment of the contract price of P300,000.00in 60 equal monthly installments of P5,000.00 each. After having paid 36 installments, B defaulted in the payment of the succeeding installments. As a consequence, Century cancelled the sale. B now wants to claim the return of the cash surrender of the payments he had made pursuant to the “Realty Installment Buyer Act”, otherwise known as the Maceda Law.
. B is entitled to a cash surrender value of 50% of P180,000.00 or P90,000.00 under the Maceda Law.
B is entitled to a cash surrender value of 55% of P180,000.00 or P99,000.00 under the Maceda Law.
B is entitled to a cash surrender value of 90% of P180,000.00 or P162,000.00 under the Maceda Law.
B cannot invoke the Maceda Law for the return of any of the payments he had made for the lot he purchased.
