BUSINESS LAW QUIZ –Law on Sales –Part I 1. A form of delivery which takes place after the seller of the property continues in possession of said property No longer as owner but as a mere possessor: a. Traditio constitutum possessorium c. Traditio brevi-manu b. Traditio calvis d. Quasi-Traditio 2. When goods are delivered to the buyer on “sale or return”, the ownership passes to the buyer: A. Upon delivery of the goods b. Upon the expiration of the period agreed upon c. Upon acceptable of the buyer of the sellers offer d. Upon perfection of the sale 3. When are delivered to the buyer on approval, trial or satisfaction, the ownership passes to the buyer: a. Upon delivery of the things c. Upon conception of the sale b. Upon meetings of minds d. Upon the return of the things to the seller 4. P orally appointed A as his agent to sell the formers land. On January 3, 2001, A sold the land to B who for with took possession thereof. It turned out however, that on January 1, 2001, P, without informing A, had already sold the same land to C, who up to now has not taken possession of the same land. Neither of the sales was registered. Whose contract shall prevail? a. The sale to B for he was first in possession in good faith b. The sale to C for the land was first sold to him by the owner c. Those sale to B for the agent was duly authorized to sell the land. d. The sale to C because the sale to B was void, A was not duly authorized by P. 5. S sold to A in a memorandum of agreement of the sale of his parcel of land. After a week, S sold the same land to B in a formal deed of sale. Upon buying the land, B who was aware of the sale to A, immediately took possession thereof and registered the sale in his favor. When informed of the second sale, A subsequently registered an adverse claim with the Registry of Deeds. The parcel of land shall belong to: a. A because he has the older title b. B because the sale to him was in a formal deed of sale c. B because he first registered the sale in his favor d. B because he was the first possessor of the land. 6. In case of redemption, which of the following will not be paid by the seller to the buyer? a. Expenses incidental to the sale paid by the buyer b. Necessary expenses made on the thing sold c. The consideration of the sale paid by the buyer d. The interest on the purchase price 7. Dacron en Pago as distinguished from sale: a. The object is always existing and specific b. There is greater freedom in fixing the price
c. There is no pre-existing obligation d. The cause is the price
8. S sold to B his car .There was no fixed date for the performance of their respective obligations .The obligation of S of S as vendor is: a. To wait for the buyer to pay the price before he delivers b. To deliver the immediately since the sale has been perfected c. To deliver the car after the buyer demands delivery d. Rescind the contract for the time of performance not fixed 9. A, B and C are co-owners of a parcel of land pro-indiviso. A sold his share to B in an absolute deed of sale Which is correct? a. The deed of sale between A and B is void since it was made not in favor of a third person b. C may exercise his right of redemption on the interest of A sold to B c. C may redeem only ½ of the share sold by A to B d. C cannot exercise the right of redemption since the sale was made to a co-owner
10. If the same thing was sold to different buyers, the ownership shall pertain to the one who has taken possession there of in good faith if movables The seller is liable to the buyer for any hidden defect of the thing sold only if was aware thereof a. First statement true second is false c. Both are true b. Both are false d. First is false, second is true 11. The buyer has the right to the fruits of the things: a. From the time the fruits have been delivered b. From the time the obligation to deliver the thing bought arises c. From the time of perfection of the sale d. From the time the thing is about to delivered 12. S sold his cat to B for 2,000. 00. No payment has been made and the sale document does not provide for the date of the delivery .Before the delivery and payment the cat gave birth to a kitten. a. B entitled to the kitten which was born after the perfection of the sale b. S entitled to the fruit as B has not yet paid the price c. S entitled to the fruit because it was born before his obligation to deliver the cat d. B should pay an additional amount for the kitten to be entitled to it. 13. S delivered his car to B by way of a sale with the understanding that on the day following such delivery S will name and fix the price. The said day came and S telephoned B and stated and fixed the price at Php1M. Is the sale perfected? a. Yes because the price was named and fixed on the agreed date b. No the price was left to the discretion of the seller only c. Yes since there was already delivery of the thing sold. d. No the price fixed by the seller was not accepted by the buyer 14. Three of the following are option money. Which is the exception? a. Given when contract of the sale is perfected b. Given when there is no contract of sale, but as a consideration c. Given to bind the offeror in a unilateral promise to buy or sell d. Given as the consideration distinct from the price 15. In a sale, this is actual delivery: a. Execution and signing of the deed of sale b. Goods sold are placed in the control and possession of the vendee c. Delivery by the vendor of the keys to the place where the goods are kept or stored d. The vendee is already in possession of the goods even before the sale. 16. A and B entered into a contract of lease with option to buy the car of the former for a term of two years. For three months B failed to pay the rentals and by reason thereof, A repossessed the car. Hence: a. A can collect the unpaid rentals for three months b. A can collect the unpaid rentals for the duration of the term of the lease of two years c. When A deprived B the possession of the leased car, he has no further action against the latter for any unpaid rentals d. A shall return the rentals without deductions to B by virtue of the rescission of the contract of lease with option to buy 17. A offered in writing to sell his house and lot for Php 1M to B on January 20, 2001. B requested A to give him one month to raise the amount. On January 25, 2001 A informed B that he has raised the price to Php 1.5M. Can B compel A to accept the payment to Php 1M for the sale of the house and lot? a. Yes because A is already estopped by his written offer of Php 1M b. No because the one-month option period has not yet expired c. No because there is as yet no perfected sale d. No because the seller has the sole discretion in fixing the price with or without the concurrence of the buyer 18. Which of the following may not be the object of a contract of sale? a. The things having potential existence b. Things, the acquisition of which depends upon a contingency which may or may not happen. c. Vain hope or expectancy d. Things subject to resolutory condition
19. When delivery takes place by mere consent or agreement of the parties as when the vendor merely points to the thing sold which shall thereafter be at the disposal of the vendee if the thing sold cannot be transferred to the possession of the vendee upon sale: a. Traditio symbolica c. Traditio longa manu b. Traditio brevi manu d. Traditio constitutum possessorium 20. A placed an order with B for one hundred pieces of T-shirts which were then not available but manufactured by B and consigned to its sales outlets regularly. The contract between A and B is: a. Contract piece of work c. Contract of sale b. Contract of lease of service d. Renumetory contract 21. A sold a parcel of land to B.Thereafter , A sold the same land to C who immediately took possession of the land in good faith .In this case , the proper remedy of B is: a. Ask for the annulment of the sale of C b. File on action in court against C to recover the land c. Institute an action for damages against A for breach of contract d. File on action for rescission of the sale to C due to the damage suffered by him 22. A seller sold to a buyer a piece of jewelry at the price of Php 1M.The contract provides that the buyer will pay the seller cash of Php .4M and deliver the buyers car worth Php .6M .The contract is: a. Barter b. Sale c. Partly sale and partly barter d. Commodatum 23. A delivers to B his parcel of land worth Php 1M in exchange for the car of B worth Php .5M and cash in the amount of Php.5M .The contract is: a. Barter b. Sale c. Partly sale and partly barter d. Innominate contract 24. On January 2, 2001 A sold to B his car with the payment to be made on January 10, 2001 .However, on January 6, 2001 A sold the same car to C who immediately took the possession thereof. Decide a. B must wait for January 10, 2001 and sue A for damages b. B may recover the car from C because the former was first buyer c. B may claim damages from A for breach of contract of sale d. B can file an action to annul the sale to C even if C is in good faith in buying the car 25. A contract of sale is unenforceable if it is not in public instrument and it refers to a sale of real property A sale of house through an agent whose authority is oral is void. a. Both statements are true c. Second is true, first is false b. Both are false d. First is true, second is false 26. In case of double sale, priority is given to the buyer in good faith, that is, whether registrant, possessor or with the oldest title. a. First statement is false, second is true c. Both are false b. First is true, second is false d. Both are true 27. A sold his own land to B who began to possess it. Later, C, a stranger, sold the same land to D who in good faith registered the sale and thus obtained the title in his name. The owner is: a. D is the owner for he was the first to register in good faith b. A remains to be owner because C had no authority to sell c. A still the owner because B did not register the sale d. B is the owner because the owner is his seller and he has taken possession of the land. 28.
S sold his land to B. Then S became B’s tenant on the land. Subsequently, S sold the same land to C. Neither sale was registered. Who should be the owner? a. S remains to be the owner because neither of the contracts of sale was registered b. C is the owner because the possession of the land was not transferred to B as buyer thereof c. B is the owner since he bought the land from S as owner thereof and has possession of the same d. S retains the ownership of the land because he still has possession
29. A sold his land to B. Later A sold the same land to C. B in turn sold the same land to D, who took possession of the land in good faith. C, a purchaser in good faith registered the sale in his favor .Decide: a. B is the owner of the land because he was the first buyer b. C is the owner of the land having registered the sale in good faith
30. A husband and his wife were living together under a conjugal partnership of gains. Later, because of a quarrel the wife left husbands without judicial approval .They have thus been living apart for more than ten years. The wife later sold her land to the said husband. Is the sale valid? a. The sale is valid because the spouses have been separated for more than ten years b. The sale is valid because after the separation there is already a separation of properties between spouses c. The sale is void because of the absence of separation of properties between spouses d. The sale is void because the spouses are living apart 31. In a contract of sale, the buyer becomes the owner upon delivery of the thing sold as a rule. Non-payment of price is resolutory condition In a contract of sale, the buyer becomes the owner only after he has fully paid the price .Payment of the price is suspensive condition. a. First statement is true, second is false c. Both are false b. First is false, second is true d. Both are true 32. The seller of a thing must have right to transfer the ownership thereof at the time of the meeting of the minds parties: The sale of a mere hope or expectancy is deemed subject to the condition that the thing will come into existence It is a sale however of present thing, that is, the hope itself already existing a. Both statements are correct c. First is correct, second is incorrect b. Both are incorrect d. First is incorrect, second is correct 33. A sold to B in a private instrument parcel of land for Php 5,000.00 B now wants A to place the contract in a public instrument so that B could register the sale with the Registry of Deeds and secure the Transfer Certificate of Title in his name. Decide: a. A may not be forced or compelled to execute the public instrument since the sale is unenforceable being in private instrument only. b. A cannot required to place the contract in a notarized deed of sale because the contract is void not being in public instrument c. A can be required to execute the public instrument if only B has paid the purchase price d. A ha s the obligation to execute the public instrument because the contract of sale is enforceable 34. A sold to B orally a parcel of land for P.5M. Delivery and payment were made to four months later. When the said date arrived A refused to deliver the land .Can B compel A to deliver? a. Yes because the sale has been perfected already and obligations of the parties are reciprocally demandable b. Yes because there was an agreement to deliver after four months and that should be respected by the parties c. No because the sale although valid is unenforceable ???!! d. No because the sale is void, being orally entered into 35. A sold to B a particular pencil for P250.00. The sale is oral. It was agreed that the payment and delivery are to be made after two years from the sale .At the stipulated period A refused to deliver alleging he has no obligation to do so .Is A correct? a. Yes because the sale is voidable and cannot be enforced b. Yes because the contract is unenforceable it being an oral contract c. No because the contract is enforceable since the price is less than five hundred pesos d. No the contract is valid, binding and therefore must be given effect 36. A bought a car from B who is an insane man; later A sold the same car to C who was in good faith having no knowledge of the voidable character of the sale. In this case, after delivery: a. C could not acquire title to the thing because his seller A had no ownership to transfer to him because B was insane person who was not able to give consent to the sale which is void b. C cannot acquire title to the thing despite his good faith because the sale by B to A could be annulled since it is voidable sale c. C acquires good title to the thing as an innocent purchaser for value. His sellers title only voidable which has not been avoided at the time of the sale. d. C acquires title to the thing but the same may be rescinded after annulment of the sale between A and B. 37. A buys form B a piece of land supposed to contain 1,000 sq. m at the rate of 10,000.00 per sq. m .But the land actually contains 1,500 sq. m. Which of the following is not included in the right s of A? a. A may demand the delivery of the entire land with proportionate increase of the price b. A may reject the excess of 500 sq. m and accept only the 1,000 sq. m c. A may rescind the contract of sale because what was delivered is not in accordance with the contract d. None of the above
38. A buys a land from B at the lump sum of P1M. In the contract the area is stated to be 1,000 sq. m .The boundaries were mentioned in the contract. It was discovered, however, that the land within the boundaries really contains 1,500 sq. m. Which of the following is not a right of A? a. A may demand the delivery of all the 1,500 sq. m without any price increase b. If B refuses to deliver to all the 1,500 sq, m A may demand proportionate reduction in the price c. A may rescind the contract of sale if B does not deliver all that is included in the boundaries d. A may treat the contract as void ab initio because the object is not determinate to its kind 39. Even in the absence of doubt, a sale with right of repurchase is presumed to an equitable mortgage In conventional redemption, it is not necessary that the parties agree upon the period within which redemption may be exercised a. Both statements are correct c. Both are incorrect b. First is false, second is true d. First is true, second is incorrect 40. A bought pair of shoes from a shoe store and repair shop. It was later discovered, however, that the shoes did not belong to the store but to a customer who had left the same for repair .Did A acquire good title to the shoes? a. No because it was sold by the store which is not the owner thereof b. No because it is the fault of A in not existing diligence in buying the shoes as to its real ownership C.Yes because it was bought from a store in good faith for value d. Yes because the owner of the shoes was preclude from setting up the want of authority of the store in selling the shoes 41. Warranty against eviction as well as against hidden defect may waived by the vendee provided the vendor in good faith Waiver intencionada the part of the vendee will absolutely exempt the vendor from liability a. Both statements are false c. First is false, second is true b. Both are true d. First is true, second is false 42. In waiver consent there is no warranty against eviction but the seller is still liable to pay the value of the thing at the time of eviction if it takes place. a. Both statements are correct c. First is correct, second is incorrect b. Both are incorrect d. First is incorrect, second is correct 43.A,B and C are co-owners in equal shares of one hectare rural land , the adjoining owners to which are D and E , the latter owing the smaller area . A donated his share of the land his share of the land owned in common to X who is a rural landowner. Upon proper notice of the sale B, C, D and E south to exercise the right of legal redemption over the shares sold. Who shall have the right to do so? a. A and B are preferred to D and E to redeem because co-owner have preference to adjoining owners. b. E shall have the right to redeem because he has smaller area of the land than D. c. The first one between A and B request redemption shall be preferred in case both demand. d. None of them has to redeem because the alienated was not by onerous title. It ain’t a sale, right? Hehehe 44. In case eviction takes place the sells is obliged to return to the buyer the price he paid for the thing sold. In case the thing is lost due to its hidden defect, the vendor shall to the vendee the value at the time of loss. a. Both statements are true. c. First is false, second is true. b. Both are false. d. First is true, second is false. 45. In the sale of goods, if the seller deliver more than the quality agreed upon, the buyer may rescind the Contract of sale. The seller shall have the right of legal redemption only if this right has been agreed upon between the sellers and the buyer. a. Both statements are true, second is false. c. First is false, second is true. b. Both are true. d. First is true, second is false. @[email protected]
46. If several person, jointly and in the same contract, should sell an undivided immovable with a right of repurchase, none of them may exercise this right for more than his respective share. Each one of the co-owners of an individual immovable who have sold his share separately, may independent exercise the right of repurchase as regards his own share, and the vendee cannot compel him to redeem the whole property. a. Both statements are true, second is false. c. First is false, second is true. b. Both are true. d. First is true, second is false.
47. The creditors of the vendor cannot make use of the right of redemption against the vendee, until after they have exhausted the property of the vendor The vendor is responsible to the vendee for any hidden faults or defects in the thing sold if so stipulated by the parties a. First statements are false, second is true. c. Both statements are false b. Second statement is false, first is true d. Both statements are true 48. Three of the following are the remedies of the buyer in case of the breach of warranty by the seller. Which is not included? a. Accept or keep the goods and set up the breach of warranty by way or recoupment or extinction of the price b. Rescind the contract of sale and refuse to accept the thing or if already delivered refuser to return the same c. Accept or keep the goods and claim damages for the breach of warranty d. Refuse to accept the goods and claim damages for the breach of warranty 49. In the sale of immovable property, if it has been stipulated that upon failure to pay the price at the time agreed upon, the rescission of the contract shall of right take place, the vendee may still pay despite the demand for rescission In the sale of movable property , the rescission of the sale shall of right take place if the vendee , upon the expiration of the period fixed for the delivery of the thing ,should not have appeared to receive it, or having appeared he should tendered the price a. Both statements are correct. c. First is incorrect, second is correct b. Both are incorrect d. First is correct, second is incorrect 50. B in good faith purchased a diamond ring from C, a friend of his. C gave B a bill of sale .Later on; O identified the ring as the one she had lost about a year before. There was no question as to the truth of O’s allegation. In case: a. O cannot recover the ring from B because the latter was in good faith when bought the ring from C. b. O cannot recover the ring from B because it was lost by him (O) and found by C, therefore C, as finder will be keeper and owner could transfer ownership to B, an innocent purchaser for value c. C is the one liable to O for damages while B becomes owner who could not be disposed being an innocent purchaser for value d. O can recover the ring from B even if he is an innocent purchaser for value because C did not have title to convey to B. 51. X the owner of a certain jewelry delivered through same to Y “on sale or return” upon a specified period of time. Y sold the said jewelry to Z, but retains the price .Can X recover the jewelry from Z? a. X can recover the jewelry from Z being unpaid seller whose ownership was not transferred to Y upon delivery to him b. X can recover the jewelry from Z but after reimbursement of the price paid c. X cannot recover the jewelry from Z because his seller (Y) has transferred ownership to him d. X cannot recover the jewelry from Z because it was sold by his agent Y to Z and his only recourse is to go after Y for his failure to remit the payment to him. 52. A sold his piano to B, who immediately paid the price .Because the piano, was at the repair shop at the time of the sale, no delivery was made. While at the said place, C as a creditor of A who has failed a suit against him attached the piano. May B oppose the attachment? a. B may oppose the attachment on the ground that he already was the owner of the same after he immediately paid the price b. B may oppose to the attachment because there was already constructive delivery to him of the piano and therefore he is owner of the same c. B may not oppose the attachment because although he is not yet the owner of the piano, he has already paid the price and has preference over the thing than C. d. B may oppose the attachment because he is not yet the owner despite payment of the price as there is no delivery yet. 53. A sold to B his car .There was no fixed date for the performance of their respective obligations. The obligation of B as vendee is: a. To immediately pay the price because their obligations are demandable at once being pure obligation. b. To pay upon the demand by the vendor c. To rescind the sale because there was no agreement as to when their obligations shall performed d. To pay at the time of delivery
54. P authorized A to sell the formers car. A sold the car to X. Without knowledge of the sale to X, P sold the same car to Z. Which of the two buyers shall be preferred? a. X being the buyer of a duly authorized agent c. X the first registrant in good faith of the sale b. Z being the buyer of the principal himself d. The first possessor in good faith of the car 55. S sold to B his parcel of land valued at P1M only for a measly sum of P.5M because if his poor judgment on the real value of the land and the ability of B to bargain for a low price. The sale therefore is: a. Voidable due to inadequacy of the price b. Rescissible because S suffered lesion or damage c. Presumed equitable mortgage due to the unusually inadequate price d. Valid although may be annulled because of vitiated consent of S. 56. In payment of his debt to X, A ceded his one half (1/2) share in a parcel of land he co-owned with B. B therefore: a. Has the right of pre-emption as a co-owner b. Has the right of redemption as a co-owner c. Has no right of redemption nor pre-emption since the transfer was not of sale d. Has the right to compel X to buy his ½ share of the land to prevent co-ownership between X and himself 57. In case if doubt, a sale with a right of repurchase or without a right of repurchase shall be construed as an equitable mortgage .The seller therefore: a. May ask for the reformation of the instrument ??? hehe b. May ask for the annulment of the contract c. May ask the court for the declaration of nullity of the contract d. Shall be bound to perform his obligation as seller 58. A sold to X his ½ share of the parcel of land he co-owns with B. C owns the parcel of the land adjoining that of A and B. Both B and C want to redeem the share of A which latter sold to X. a. C shall be preferred to B in the redemption form X. b. B’s right as co-owner excludes that of C, the latter being only an adjoining owner c. C has a better right to the redemption as an adjoining owner d. B and C shall equally redeem the share of A 59. In contract to sell of a parcel of land it was stipulated that upon failure to pay the price at the time agreed upon for payment, the sale is automatically rescinded. Hence, if the buyer fails to pay as agreed upon: a. The sale shall not be rescinded as a matter of right and the buyer may still pay as long as there is no demand for rescission b. The rescission of the contract of sale shall of right take place c. The rescission of the contract to sell shall of right take place d. Contract to sell or contract of sale, rescission of the sale shall of right take place 60. S sold to B his dog which he knew was afflicted with a disease. The parties agreed that there is no warranty against hidden defect. After, delivery, the dog was struck by lightning and thus died. a. S is not liable to pay B any amount because the dog was loss due to fortuitous event b. S is not liable because of the waive agreed upon between B and himself c. S is not liable to return the price paid by B because the waiver is void d. S is liable for the price less the value of the dog at the time of loss.
BUSINESS LAW QUIZ ON SALES-PART II 1. A contract whereby the contracting parties obligate him to transfer the ownership of and to deliver a determinate thing and the other to pay therefore a piece certain money or its equivalent is a contract of: a. Barter b. Sales c. Dacion en Pago d. Mortgage 2. The following are the essential elements of a contract of sale except a. Consent of the contracting parties b. Subject matter which would be determinate c. Price which is certain in money or its equivalent d. Warranty against eviction and against hidden defects 3. The following are the characteristics of a contract of sale, except a. Principal which means that a contract of sale can exist by itself b. Real which requires the delivery of the object of the contract of sale for its perfection c. Onerous. Where rights are acquired in exchange of a valuable consideration d. Bilateral which means that both parties are bound reciprocally to each other 4. One of the following characteristics of Dacion en Pago is a characteristic of a contract of sale. Which is it? a. there is a pre-existing credit b. obligation are extinguished c. there is less freedom in fixing the price d. ownership of the object is transferred to the other party 5. The following are characteristics of a contract of sale except one which refers to payment by cession a. there is a pre-existing credit b. obligation are extinguished c. there is less freedom in fixing the price d. assignee of the property acquires the right to sell the thing but not the ownership thereof 6. The following items pertain to either a contract of sale or a contract to sell. I. Ownership of the thing sold is transferred upon delivery II. Ownership of the thing transferred to the buyer at some future time III. The risk of loss on the buyer IV. The risk of loss on the seller Based on the above data, which of the following is correct? a. Items I and III pertain to a contract to sell b. Items I c. I and III pertain to a contract to sell d. Items II an IV pertain to contract of sale e. Items I and III pertain to a contract of sale 7. Which of the following is not a requisite of the object of a contract of sale? a. it must be within the commerce of men b. it must be licit c. it must be determinate thing d. vendor must have the right transfer the ownership of the thing at the time of sale 8. The following items pertain to either emptio rei sperati or emptio spei I. The sale of a future thing II. The sale of hope or expectancy III. The sale of 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 emptio rei sperati c. Items II and I pertain to emptio rei sperati b. Items II and III pertain to emptio spei d. Items II an IV pertain to contract of sale e. Items I and III pertain to a contract of sale
9. S sells to B 500 sacks of rice at 1, 000, 00 per sack from the stock then stored in the warehouse of S. Unknown to the parties, the warehouse contains only for 480 sacks or rice. What it the status of the contract? a. The sale is void since the quantity available is less than the quantity sold b. The sale is valid up to 480 sacks of rice but void as to the deficiency of 20 sacks of rice c. The entire sale is valid up to 500 sacks of rice becomes. B becomes the owner of the whole stock available and S must deliver the deficiency of 20 sacks of rice d. 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 suffer by B. 10. S sells to B at P50 per litter 300 litters of gasoline stored in his trucks tank which unknown to the parties, contains 500 litters .What is the status of the contract of sale between S and B? a. The sale is void since the quantity available is less than the quantity sold b. The sale is valid up to 500 litters of gasoline .B must pay for the additional 200 litters c. The entire sale is valid up to 500 gasolines of litters. B becomes the owner of 3/5 whole of the stock, while S becomes the owner of 2/5 thereof d. The sale is rescissible because S will suffer lesion of more than ¼ of the value of the whole stock 11. The seller must be the owner of the property he sells because he must transfer the ownership thereof to the buyer .The delivery of the thing may sold may be by mere agreement of the parties a. Both statements are true c. Both are true b. Only the first is true d. Only the second is true 12. S and B entered into a contract whereby S transferred to B specific car for the price of 200,000.00, while B gave To S 90,000.00 in cash and a diamond ring with worth 110,000.00 .The heading of the written contracts reads “Contract of Sale” a. The contract is void because the intention of the parties is void since the value the diamond ring is more than monetary consideration given b. The contract is valid contract 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 valid contract of the barter since the value of the property is given more than the monetary consideration The intension of the parties is immaterial d. The contract is partly a contract of barter and partly a contract of sale 13. The price in a contract of sale is certain except a. When the parties have fixed or agreed upon definite of fixed amount b. If the price is certain with reference to another thing certain c. If the fixing of the price is left to the discretion of one of the thing parties d. If the price fixed is that which the thing sold would have on a definite day or in a particular exchange or market 14. On January 1, S orally sold to B a specific ring for P450.00.The parties agreed that S shall deliver the thing to B on January 5 while B will pay the price on January 7 a. The contract is perfected on January 5 when the ring is delivered by S to B b. The contract is perfected on January 1 when the parties had a meeting of minds on the object and the price c. The contract is perfected on January 7 when the price is paid since both parties would then have performed their obligations in the contract d. There is no perfected contract because the sale was made orally 15. A sum of money paid or a thing delivered upon 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. a. Option Money b. Earnest Money c. Reservation Money d. Down payment 16. S orally offered to sell a certain diamond ring to B for 50,000.00. B accepted the offer and to prove that he was in earnest, he gave S 1,000.00.The parties agreed that the delivery of the ring and the payment of the price would be 30 days later .On due date: a. S may collect from B P50, 000.00 b. S may collect from B P49, 000.00 c. S cannot enforce payment because the contract was verbal d. S cannot enforce payment because there was no contract of sale yet.
17. On June 1, 2006 S sold to B 50 units of machines which were scheduled to arrive from Japan. The sale was evidenced by an invoice identifying each machine by serial number. Each machine was priced at 10,000.00 Unknown to the parties, 30 units were damaged beyond repair by seawater on May 31, 2006. Based on the foregoing, which of the following statements is incorrect? a. B may rescind the whole contract b. B may demand delivery of the remaining 20 units and pay the price therefore c. S may require payment of the whole shipment from B since S was not aware of the damage caused on the machines at the time of sale d. S has no option to rescind the whole contract or require payment of the remaining 20 units 18. It refers to the delivery of the thing, from hand to hand in case of movables, or the taking or possession with the respect to immovable, in the presence with the consent of the vendor a. Actual or real delivery b. Traditio longa manu b. Traditio constitutum d. Traditio brevi manu 19. Delivery of incorporeal property may be through any of the following means except a. Execution of public document b. Placing the titles of ownership in the possession of the vendee c. Used by the vendee of his rights, with debtors consent d. Execution of private instrument 20. Which of the following statements on the transfer of ownership of the thing sale in trial is incorrect? a. Ownership of the thing is transferred to the vendee when he signifies his approval or acceptance to the vendor b. Ownership of the thing is transferred to the vendee when he does act adopting the transaction c. 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 giving notice or rejection or acceptance to the vendor d. Ownership of the thing is transferred to the vendee upon delivery 21. On March 1, 2006 S sold and delivered to B a television set for 10,000.00 on sale or return giving B up to March 16, 2006 within which to return the television the set. On March 16, 2006 the television set was burned through no fault of B. based on the foregoing, which of the following statements is incorrect? a. S does not have to replace the TV set. b. S must be the loss since the time for the return of the television set had not yet expired c. The ownership of the television set was transferred to B upon delivery to him. d. B must bear the loss of the television set. 22. In a contract of sale of personal property the prince of which is payable in installments, the vendor may exercise any of the following remedies, expert. a. Exact fulfillment of the obligation, should the vendee fail to pay any number of installments. b. Cancel the sale should the vendee’s failure to pay cover two or more installments c Foreclose chattel mortgage on the property if the vendee’s failure sale if they have a stipulated d. Foreclose chattel mortgage on the property if the vendee’s failure two or more installments but he may no longer recover any deficiency after the foreclosure sale. 23. T stole a ring belonging to O. Subsequently, the offered for sale at 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? a. O may recover the ring from X without reimbursing X since O was unlawfully deprived of the ring b. O may recover the ring from X but he has to reimburse X since X acquired title of the ring c. O may no longer recover the ring even if he is willing to reimburse X. d. X did not acquire title to the ring since the auctioneer had no valid title thereto. 24. Where 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 a. The buyer must have bought the goods in good faith b. The buyer must have bought the goods in good faith. c. The buyer bough them without notice to the seller’s defect of title. d. The seller is good faith.
25. R, S and T are co-owners of an undivided parcel of the land. R sold 1/3 interest to T in a deed of absolute sale. Which is correct? a. S may exercise the right of redemption on the interest sold by R and T. b. S cannot exercise the right of redemption. c. The sale made by R to T is voidable. d. S may redeem only ½ of the interest sold by R to T. 26. 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. base on the foregoing facts, which of the following Statements are incorrect? a. T cannot collect from D if D not gives his consent to the assignment. b. T can collect from D. D’s consent to the assignment is not required c. T can collect from D and D cannot pay, T can foreclose the mortgage on the lot d. T notice to D of the assignment is sufficient. D must make his payment to T and no longer to C 27. A kind of mortgage which, although lacking some formality, form of words, or requisites prescribed by law, show the intention of the parties to charge real property as security for debt and contains nothing impossible or contrary to law is known as: a. Legal mortgage b. Equitable mortgage c. Conventional mortgage d. Voluntary mortgage 28. If a movable property is sold separately to two or more different vendees, ownership shall belong to the person: a. Who is good faith first paid the purchase price in full b. Who is good faith first recorded the sale in the Registry of Property c. Who is good faith presents the oldest title d. Who is good faith first took possession of the property 29. A contact of sale is perfected: a. Upon compliance with the requirements of the law as to form b. Upon delivery of the object of the contact c. Upon the meeting of the minds on the thing which is the object of the contact and upon the price d. Upon demand 30. A contact of a sale is not a: a. Principal contact b. Nominate contact
c. Consensual contact d. Real contact
31. The following may not be valid objects of a contact of sale except: a. Objects outside the commerce of men c. Future goods b. Illicit thing d. Impossible service 32. This is a kind of symbolic delivery where the vendor remains in possession of the property sold, such as by virtue of a lease agreement with the vendee. a. Traditio longa manu c. Traditio constitutum possessorium b. Traditio brevi manu d. Delivery to common carrier 33. When the goods are delivered to the buyer, the ownership thereof passes to the buyer in; a. Sale on approval b. Sale or return c. Sale on trial d. Contact to sell 34. 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 P 2,000.00 as consideration so that S would hold on to his promise. The contact entered into between S and B and consideration so that S would hold on to his promise. The contact entered into between S and B and consideration given by B to S are known as: a. Option contact and option money, respectively b. Contact of sale and earnest money, respectively c. Contact of sale and down payment, respectively d. Contact of sale and reservation money, respectively 35. Refer to No.34. a. S may withdraw his offer to sell before the lapse of 30 days by informing B b. S may not withdraw his offer before the lapse of 30 says c. S may withdraw his offer by returning the amount of P 2,000.00 that was paid to him by B d. S may withdraw his offer even before the lapse of 30 days if a favorable price, i.e., more that P 200,000.00, is offered to him by another prospective buyer 36. The Recto Law applies to which of the following examples of sale? a. Sale of a car on straight term b. Sale of house and lot on installment c. Sale of car on installment where the buyer constituted a mortgage on his truck d. Sale of a piano on installments where the buyer constituted a chattel mortgage on a piano
37. 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 same sale made by S to the other and neither took physical possession of the lot. Who is the present owner of the lot? a. B, because he was the first purchaser in good faith b. X, because he registered the sale in good faith c. Neither B or X d. S, as long he does not surrender physical possession of a lot. 38. B purchased from S a laptop computer worth P100, 000.00. The term 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 Chattel mortgage on the laptop computer and B’s lot. B complied with all the requirements but defaulted in the payment of the third and fourth installments. Theses remedies are available to S except one. Which is it? a. Cancel the sale. b. Exact fulfillment of the obligation. c. Foreclose the real mortgage and thereafter recover any deficiency from B. d. Foreclose the chattel mortgage and thereafter foreclose the real mortgage incase of deficiency. 39. S and B entered into a contract where 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. A contract of barter. b. A contract of sale . c. The contract of sale. d. The contract is an in nominate contract because the intention of the parties cannot be determined. 40. One of the distinctions between option money and earnest money is; a. The consideration paid for the purpose of holding one to his promise to buy or sell a determinate thing for certain period of time. b. Not part or the purchase price. c. Proof of the perfection of the contract of sale. d. Paid before the perfection of the contract of sale. 41. 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 enforce if the buyer is deprived of the property sold by a final judgment in court a. Warranty against hidden defects. c. Warranty against evection. b. Warranty of merchantable quality. d. Warranty of possession. 42. 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 as in a public document. The sale of P’s lot is; a. Valid b. Rescissible c. Unenforceable d. Void 43. 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: a. Is not governed by the Statue of fraud. b. Refers to a contract for the delivery goods which are manufactured in the ordinary course of business although the same are not available. c. Has for its parties the vendor and the vendee. d. Has for its consideration the price of the thing 44. A and B are co- owners of a rural lot not exceeding 1 hectare. The lot is surrounded on its 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 21/2 hectare, and on the west, by Z’s lot consisting of 2 ¾ hectare. A sells his undivided interest in the agricultural lot to T, who owns 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? a. B b. X c. Y d. Z 45. It is an affirmation of fact or any promise by the seller relating to the thing which has a nature tendency to induce the Buyer to purchase the same, relying on such promise or affirmation. a. Condition b. false representation c. Warranty d. Seller’s talk
46. In one of the following cases, the ownership of the thing object of the contract is transferred to the other party upon delivery. a. Contract to sell b. Agency to sell c. Sale or return d. Sale on approval
47. Under the “Realty Instrument Buyer Act”, the buyer or 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: a. Industrial lots c. Residential lots b. Commercial buildings d. Sales to tenants under the Land Reform Law 48. 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 possession of the car, B offered to buy the car from S for 200,000.00. 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 in price in cash. Thereafter, B drove away from place of S. a. The delivery of the car by S to B is by constitutum manu b. The delivery of the car by S to B is by Traditio longa manu c. The delivery of the car by S to B is by Traditio brevi manu d. There was no delivery because B should have turned over the 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 49. 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 manufactured the kind of shoes that B needed. Since S and B had been neighbors for a long time, their agreement was sealed with a handshake a. The contract between S and B becomes enforceable if S had already completed making a pair of shoes b. The contract between S and B becomes enforceable if had already paid agreed upon for the work c. The contract between S and B is enforceable even if it is still executory d. The contract cannot be enforced by either party because it was not in writing 50. Which of the following contract of sale is void? a. Oral sale of a piece of land made through an agent whose authority in a public instrument b. Sale of a piece of land in a public instrument made through an agent whose authority was given orally by the principal c. Sale of a piece of land in private instrument made through an agent whose authority is in a public instrument d. Sale of a piece of land in private instrument made through an agent whose authority is in a public instrument
BUSINESS LAW QUIZ ON SALES – PART III 1. On July 5, 2006 A sold for P2M her house and lot to B. It was agreed that delivery of the house and lot, and the payment therefore would be made on August 1, 2006 .Unfortunately, C negligently set the house on fire on July 26, 2006 and the house was completely destroyed. Which h is correct? a. B is not required to pay the 900,000 since the contract had no subject matter b. A must still delivered the lot but is excused from delivering the house, while B must still pay the P2M c. A must still deliver the lot while B should pay only the amount equivalent to the value of the lot d. A need not to deliver the lot while B need not to pay the P2M 2. 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 present s 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 3. Using the preceding number if movable property it shall belong to the person a. Who have paid in good faith the purchase price in full b. Who in good faith first recorded it in the Registry of Property c. Who present s the oldest title in good faith d. Who have first taken possession in good faith 4. Action by the vendee against the vendor to nullify the sale due to some vices or defects which render the object of sale unit for the use intended or knowledge of which , the vendee would not have bought the thing a. accion quanti minoris c. accion pauliana b. accion reinvidicatoria d. redhibilitory action 5. Action seek to a corresponding reduction in price by reason of some vices or defects in the thing purchased a. accion quanti minoris c. accion pauliana b. accion reinvidicatoria d. redhibilitory action 6. The redhibitory action based on the faults or defects animals must be brought within a. 30 days from the delivery to the vendee c. 45 days from the delivery to the vendee b. 40 days from the delivery to the vendee d. 6 months from the delivery to the vendee 7. In contract of sale, if the price is absolutely simulated the sale is a. Unenforceable b. Voidable c. Void
8. In a contract of sale of personal property , the price of which is payable in installments ,the vendor may exercise any of the following remedies except a. exact fulfillment of the obligation should the vendee fail to pay any installment b. cancel the sale, should the vendee’s failure to pay cover two or more installments c. foreclose the chattel mortgage on the thing sold , if one has been constituted should be vendees failure to pay to recover two or more installments d. rescind the sale should the vendee fail to pay any installment 9. The right of the seller to stop the goods in transit upon discovering that the buyer does not have the funds to pay for the goods a. pre-emptive right c. voting right b. appraisal right d. right of stoppage in transit 10.A sold to B a parcel of land for P3.8M .The sale is evidenced by a memorandum of agreement of sale .One week later, A sold the same parcel of land to C for P4M. This is evidenced by a formal deed of sale. Upon buying the property, C, was who was aware of the first sale, immediately took possession of the lot .When informed of the second sale, B subsequently registered an adverse claim property .Later, C registered the deed of sale in her favor .The parcel of land shall belong to a. B because he has got an older title c. C because he is the first to take possession b. C because he is the first to register d. No one as both sales are void
11. Voluntary renunciation made by the buyer of his right to warranty against eviction where in case the buyer is evicted the seller is liable to the value of the thing at the time of eviction? a. waiver intencionada c. waiver cursunada b. waiver consciente d. waiver inocente 12. Using the preceding number where the seller is no longer liable a. waiver intencionada c. waiver cursunada b. waiver consciente d. waiver inocente 13. A contract of sale whereby the seller acquires the right to redeem or repurchase the object of the sale from the buyer within a certain period agreed upon a. equitable mortgage c. on sale or return b. absolute sale d. pacto de retro sale 14. 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 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 default without need of any demand 15. A sold to B her RJ guitar . It was agreed that A would fix the price a week later. At the agreed time, A named the price 10,000. B agreed. Was the sale perfected? a. No because the price was left to the discretion of one of the contracting parties b. No because at the time of sale the price was not fixed c. Yes because the price fixed by one of the parties was accepted by the other d. Yes because there was agreement that A would the fix the price 16. Not an implied warranty in a contract of sale a. Right to sell the thing at the time of perfection of the contract b. Reasonably fit for the purpose they are acquired c. Merchantable in quality d. Free from charges or encumbrances not declared or known to the buyer 17. After death of C, A, C’s son, sold his inheritance though its amount has not yet been determined to B for a consideration of 1,000,000.Which is correct? a. The contract is valid if the value of inheritance is at least equal to 1,000,000 b. The contract is valid even though the inheritance to be turned over to B is less than P1M c. The contract is void as future inheritance cannot be the object of sale d. The contract is unenforceable 18. A stole a fountain pen from P and sold it to B Merchandise a “store for pens”, which paid for it in good faith, not knowing it was stolen. The “store” then sold it to B , a reviewee. Which is correct? a. C cannot be considered as the owner because the original seller (A) is not the real owner b. P may recover the fountain pen from C without reimbursement because he is the legal c. C because the owner because he purchased the pen from a merchant store d. C became the owner regardless whether the seller is a tore for pens or not because C bought it in good faith 19. When goods are deliver to the buyer on sale or return for period of seven days, ownership of the goods passes to the buyer a. Upon perfection of the contract b. Upon acceptance by the buyer of the offer of the seller c. Upon expiration of seven days d. Upon delivery of the goods 20. Quasi-Traditio is equivalent to a. Traditio longa-manu b. Traditio brevi-manu
c. Traditio constitutum possessorium d. Buyer has the title of ownership
21. B imported radios from Japan and asked for 220 volts capacity. The radios arrived clearly labeled 220 volts and B sold them to the public as such. Later a customer complained that the radios have been mislabeled by the manufacturer a. B is liable to the vendees for any hidden defects even though he is not aware b. B is not liable because he is in good faith c. B is not liable under the principle of “caveat emptor” or let the buyer beware d. The vendees may hold the manufacturer liable but B because B specially asked for 220 volts
22. If redemption is to be made by the seller one of the following need not to be given to the buyer a. expenses of the contract c. necessary expenses on the thing sold b. interest on the price of the sale d. price of the sale 23. Not an element of the sellers’ right of stoppage in transit a. the good must be in transit c. the seller must be in possession of the goods b. the buyer must be insolvent d. the seller must be unpaid 24. A sold his only car to B for 300,000 to be paid as follows: 150,000 upon delivery of the car to B and the balance at 10,000 per month until full payment of the purchase price. Later the car gets burned in the possession of B through fortuitous event before full payment of the balance .Is obliged to pay the balance? a. No because the car was lost through a fortuitous event and without B’s fault ,hence B’s obligation is extinguished b. No because the loss should be borne by the seller as this an installment sale so until the buyer pays the full amount of the price of the sale , A remains to be owner c. Yes but A must give another car to B because of the principle genus nunquam peruit or generic thing never persihes d. yes because of the principle res perit domino or the thing perishes with the owner 25.
A B and C are owners of an undivided parcel of land, A sold his 1/3 interest to B absolutely.Which is correct? a. C may exercise his right of redemption on the interest sold by A to B b. C cannot exercise the right of redemption because the sale was made in favor of a co-owner c. The sale made by A to B is void because it was made in favor of a stranger d. C may redeem only ½ of the interest sold by A to B
26. Using the preceding number, Suppose instead of selling his interest to B,A sold it to D, who can exercise the right of redemption? a. Both B and C b. B but not C c. C but not B d. A,b and C 27. Which of the following cannot be an object of contract of sae? a. incorporeal property b. young of animal not yet conceived at the time of perfection c. land which seller expects to buy d .object outside the commerce of man 28. A offered for sale to B 20 cavans of wagwag rice and fixed the price per cavan at P10 over the price offered at Y’ store in Quinta Market.The price is a. not certain because the price at quinta market is not stated b. ceratin because it has got reference to another thing which is certain c. certain bcause there is a price ceiling for price of rice d. not cerain so the court may fix the price 29. A offers to B 100 electric fans for 80,000 payabel in 60days with 12% imterest per annum. B accepted the offer by telegram provided that interest is reduced to 6% .If there is no futher communucation between A and B relating to the terms a. the contract is perfected because of the acceptance by B b. there is no contract yet between a nd b because b made a counter offer c. there contract is perfected under the terms of a d. there is no contract yet unless b gives earnest money 30.A owns 50 mango trees bearing fruits ready for harvest.She sold all the fruits of all the trees to B who paid P100,000. A told Bthat he can harvest her 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. tradito brevi-manu c. traditio longa-manu b. tradito symbolica d. traditio consitutum possessoruim 31. A sold her specific car to B for 200,000 payable in 5 equal installments. A delivered the car to B but a mortgage was constituted on the car to anwer for the unpaid installments B paid the first 2 installments but failed to pay the last 3 installments. A foreclosed the mortgaged and sold it at public auction for 100,000.Which is correct? a. a can recover from b the balance of 20,000 even if there is no stipulation to that effect b. a can recover c. a cannot recover the deficiency except if there is stipulation to the effect d. a cannot recover the deficiency even if there is stipulation to the contrary 32. 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 contact d. transferred to the buyer upon acceptance of the price
33. Y sold his horse to Z for P 50,000. 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 colt. Which is correct? a. Z is entitled to the colth which was born after the perfection of the contact b. Y is entitled to the fruit (colt)as Z has not paid the price yet c. Y entitled to the (colt) because it was born before his obligation to deliver arises d. Z should pay additional amount for the colt to be entitled to it 34. A contact of sale is in the stage of conception when a. there is meeting of the minds c. the parties come to an agreement b. negotiations are in progress d. the contact is perfected 35. A seller sold to a buyer a piece of jewelry at a price of P20,000. The contact provides that the buyer will pay the Seller cash-P15,000 and for the balance, thebuyer will give the seller a micro oven worth P5,000. What is the nature of the conract? a. sale c. barter b. partly d. commodatum 36. A guardian of B , sold B’s house and lot worth 480,000 for 240,000 a. the contract can rescrinded because of inadequacy of price b. the contract cannot be rescinded because there is no fraud , mistake or undue influence c. the contract cannot be rescinded because all the elements of the contract are present d. the contract can be rescinded by A 37. A leased to B a TV Set for two years at a leased rental fee of 1,000 per month and signed an option in favor of B to buy the TV set at the end of the term of the lease at 60,000.All rental fees paid are to be considered as partial payment of the sale .After 12 months B was able to pay the rentals feesfor 9 months and was in arrears for three months.A terminated the lease contract and repossessed the generator.The consequence of the transaction is a. a can collect the rental fees for three months which are in arrears b. a can collect the rentals fees for the unexpired 12 months of the lease contract c. when a took posssession on the generator , he has no further action against b 38. S sold to B a parcel of land for P1M infake bills.The sale is: a. void because there was no valid cause or consderation , the bills being fake b. voidable only since there was consideration but due to fraud B delivered fake peso bills. c. valid sale because of valid cause of P1M price d. void because of false cause which is the counterfeit currency 39.The buyer is obliged is to pay interest on the price from the time of delivery of the thing sold up to the time of payment in three following instances except a. should it have been stipulated b. should the thing produce fruits or income c. should the vendee be in default in the payment of the price d. should the vendee be insolvent 40.
The seller is liable for express warranty only if there is stipulation on the warranty If it is stipulated that there is no warranty against hidden defect, the seller is still liable for the value of the thing lost due to the hidden defect. a. both satements are false c. first is true, second is false b. both are true d. first is false , second is true 41. Waiver consciente and intencionada apply to both hidden defect and eviction Rescission of the sale may be resorted to by the vendee incase of total eviction a. both satements are false c. first is true, second is false b. both are true d. first is false , second is true 42. S sold to B a water pump with brand name Higopka .After delivery it was discovered that the pump does not functioning well prompting B to complain.Therefore: a. b does not have the right to complain for breach of warranty against hidden defect because the thing has a brand name when sold; b. b has the right to complain for breach of warranty against hidden defect despite the thing being sold under a patent or trade name. c. s is not liable for hidden defect even if the thing sold is unfit for the particular purpose for which it is sold; d. s is liable for hidden defect only if it was stipulated
43.Implied warranties as provided by law are enforceable only if so agreed upon by the seller and buyer in a contract of sale. Even if there is waiver of warranty against eviction and eviction should take place the seller is liable to pay the value at the time of the sale a. first statement is true, second is false c. both are false b. second is true, first is false d. both are true 44. B bought on installment a car and executed a chattel mortgage on the same in favor of the seller S as security for the unpaid balance of the price.They agreed that B shall be liable for any deficiency that may arise after foreclosure of mortgage.B failed to pay two installments.S filed a case for collection of the unpaid balance and attached the car and other asstes of B. a. S cannot attach the other assests of b because the Recto Law applies only in case of law b. S can attach the car and other assets of B as this provided c. S cannot go after the other assets of B as this as provided for under the Recto law in case of the seller exacting specific performance of the buyers obligation to pay d. S can attach all the assets of B in exacting fulfillment of B’s obligation to pay 45. S sold to B a dog on january 10, 2002. Two days after delivery, the dog suffered some illness which caused it’s death. B is now suing S for breach of warranty against hidden defect because the dog died within three days after delivery. Decide a. S is liable because the disease existed within three days after purchase b. S is not liable if he was not aware of the disease, which caused the death of the dog c. S is liable of he were in bad faith d. S is not liable because the disease did not exist at the time of purchase. 46. In contract to sell, the buyer becomes owner upon delivery of the thing sold. In contract of sale, the buyer becomes owner upon payment of the price. a. both statements are true c. first statement false, second is true b. both are false d. second is false, first is true 47. A contract of sale may be absolute or conditional. In pacto de retro sale, the repurchase is suspensive condition that will give rise to a sale. a. first statement is false, second is true c. both are false statements b. second is false, first is true; d. both are true 48. 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 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: a. voidable b. valid c. void d. rescissible 49. 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 the that C, a sales clerk , had sold the pair of shoes that C, a sales clerk , had sold the pair of shoes that B bought to X , another customer. a. X acquired ownership of the pairs of shoes earlier bought by B. b. X did not acquire ownership of the pair of shoes earlier bought by B. c. B remained the owner of the pair of shoes that he had bought despite its sale to X. d. S required ownership of the pair of shoes when it was brought to him for additional work. 50. S sold 500 shares of stocks of Sam Miguel Corporation to B at P50.00 per share. The transfer of the oqwnership of the shares of stock may be made through any of the following means except. a. Execution of the sale in a public instrument. b. The giving by S of Bof the power to vote in the stocksholder’s meetimg of San Miguel Corporation and its actual exercise thereof by B c. The issuance by S of the stocks certificate covering the 500 shares of stocks and its placing it in the possition of B. d.The issuance by Sof the official receipt for the full payment of the purchase price of the shares by B.