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Worksheets8. Sales and Credit Transactions
Total questions: 20
Worksheet time: 10mins
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 in money or its equivalent
Warranty against eviction and against hidden defects
A contract of sale is perfected
Upon compliance with the requirements of the law as to form
Upon delivery of the object of the contract
Upon the meeting of the minds on the thing which is the object of the contract and upon the price
Upon demand
Can future inheritance be the subject of a contract of sale?
No, since it will put the predecessor at the risk of harm from a tempted buyer, contrary to public policy
Yes, since the death of the decedent is certain to occur
No, since the seller owns no inheritance while his predecessor lives
Yes, but on the condition that the amount of inheritance can only be ascertained after the obligations of the estate have been paid
Statement 1: In a contract of sale, the buyer becomes owner upon delivery of the thing sold as a rule. Non-payment of price is a resolutory condition.
Statement 2: In a contract to sell, the buyer becomes owner only after he has fully paid the price.
Payment of the price is a suspensive condition.
First statement is true, second is false
First is false, second is true
Both are false
Both are true
The Recto Law applies to which of the following examples of sale?
Sale of a car 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
On March 1, A orally sold to B his watch worth 400.00. A delivered to B the watch on March 15. B paid for the watch on March 30.
The contract is perfected on March 15, when the ring is delivered by S to B.
The contract is perfected on March 1, when the parties had a meeting of minds on the object and the price.
The contract is perfected on March 30, 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.
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 cash and a diamond ring worth P110,000.00. The heading of the written contract reads, “Contract of Sale”
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 given.
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.
The contract is a valid contract of barter since the value of the property is more than the monetary consideration. The intention of the parties is immaterial.
The contract is partly a contract of barter and partly a contract of sale.
The following are exceptions to the rule that gross inadequacy of the price does not affect the contract of sale, except:
If consent is vitiated.
If the parties intended the contract to be some other contract.
If the price is so low as to be shocking to the conscience.
None of the above.
Statement 1: Option money is part of the purchase price.
Statement 2: Earnest money is proof of the perfection of the contract of sale.
Both statements are true.
Both statements are false.
Only Statement I is true.
Only Statement II is true.
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.
Statement I: The creditor can use the thing pledged even without the authority of the pledgor
Statement II: 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
Both are true
Both are false
Only the first is true
Only the second is true
If two or more things are pledged, who has the right to choose which thing will be sold in the absence of stipulation in the contract of pledge?
Pledgor
Pledgee
Debtor
Government
The creditor/pledgee has the following rights, except
To retain the thing in his possession until the debt is paid
To use the thing pledged without authority if such use is necessary for its preservation
To demand reimbursement of the expenses made for the preservation of the thing
To automatically appropriate the thing pledged upon the default of the debtor in the payment of his debt
Recording in the Registry of Property in the appropriate book is required for the validity of the contract of
Chattel mortgage
Real mortgage
Conventional pledge
Antichresis
D borrowed P30,000 from C. To secure the debt, D pledged his ring, wristwatch, and necklace. Before the debt could be paid, C died leaving X, Y and Z as heirs. By agreement among the heirs who inherited the credit, the ring would secure the share of X on the credit, the wristwatch the share of Y, and the necklace the share of Z. Later, D pays X P10,000
D can demand the extinguishment of the pledge of the ring
X may release the pledge of the ring
The pledge of the ring will remain until the shares of Y and Z are paid by D
D can demand the extinguishment of the pledge of the ring, wristwatch and necklace because there has been partial payment
A borrowed P30,000 from B, and as security, he pledged his ring, pair of earrings, and necklace. On the due date, A paid P20,000. As a result,
A can demand the return of one (1) of the things pledged.
A can demand the return of any two (2) of the things pledged.
A can demand the return of the ring.
A cannot demand the return of any of the things pledged.
Statement I: In conventional pledge, there is no deficiency liability on the part of the pledgor in spite of stipulation to the contrary.
Statement II: In legal pledge, the excess of the proceeds of the sale after foreclosure shall pertain to the pledgor in the absence of stipulation.
Both statements are false.
Both are true.
First is false, second is true.
First is true, second is false.
D constituted a chattel mortgage on his car as security for the loan he obtained from C of P1M. It was further stipulated that the same mortgage shall secure the payment of another loan which the debtor D may incur in the future. Is the chattel mortgage valid?
The chattel mortgage for both loans is valid.
The mortgage for the P1M is the only one valid.
The mortgage as regards the future loan is the one valid.
The mortgage is extinguished because of the void stipulation on the ground that it cannot secure a future
The following are instances of pledged created by operation of law, except:
Hotelkeeper retains the things brought into the hotel by the guest who cannot pay his hotel bill.
An agent retains in pledge the thing which is the object of the agency until he is paid his commission.
A mechanic retains the car he repaired until he is paid.
A depository retains the thing in pledge until full payment of what is due.
Statement I: In a pledged created by operation of law, after payment of the debt and expenses, the remainder of the price of the sale in auction shall be delivered to the obligor/pledgor being entitled to the excess.
Statement II: If a credit which has been pledged becomes due before it is redeemed, the pledgee may collect and receive the amount due and apply the same to the payment of his claim with the excess going to the pledgor.
Both statements are false.
Both are true.
First is false, second is true.
First is true, second is false.
