Law on Sales Quiz
Law on Sales, Agency, and Credit Transactions...
Name: Year & Course:
Instructions: TRUE or FALSE. Write the word “TRUE” if the statement is true, and the word is “FALSE” if the statement is false. If it is “FALSE”, explain why your answer is “FALSE”.
1. Warranty against eviction is inherent in a contract of sale; hence it is an essential element thereof. 2. Dacion en pago partakes of the nature of a sale; hence there is more freedom in fixing the price of the thing conveyed. 3. A contract for a piece of work must comply with the Statue of Frauds. Accordingly, it must be in writing to the enforceable if the price is P500.00 or more. 4. A sales contract requires the delivery of the thing sold for its perfection. 5. If the consideration received for a thing is another thing and a monetary consideration and the intention of the parties does not clearly appear, the contract will be considered a contract of barter if the value of the property consideration is greater than the monetary consideration. 6. In a contract to sell, the full payment of the price is a suspsensive condition which upon fulfillment will require the execution of a contract of sale. 7. It is not necessary that the vendor of a thing must be the owner thereof at the time of sale as long as he can transfer its ownership to the buyer upon delivery. 8. The sale of hope or expectancy is a valid even if the thing hoped for does not come into existence. 9. If the sale of a piece of land is made through an agent, the authority of the agent must be in writing for the sale to be valid. 10. In a sale by auction, any bidder may retract his bid before the sale is perfected. 11. If a “by-bidder” or “puffer” is employed by a seller without notice in sale by auction, the sale may be treated as fraudulent by the buyer. 12. The ownership of the thing sold is transferred upon the perfection of the contract of sale. 13. A unilateral promise to buy or sell a determinate ting at a certain price is binding upon the promissory if the promise is supported by a consideration distinct from the price. 14. Earnest money is part of the purchase price of a thing; hence, deductible from the total selling price. 15. In sale of personal property payable in installments, the seller may exact fulfillment of the buyer’s obligation when the buyer defaults in the payment of one or more installments.
In sale of real property where the buyer has defaulted after paying at least 2
years installments, he shall be entitled to pay, without additional interest, the unpaid installments due within the grace period earned by him. 17. The purchase by a guardian of the property of the person under his guardianship is valid. 18. The buyer shall be entitled to the fruits of the thing sold from the time of the perfection of the contract. 19. The delivery of incorporeal property may be made through the exercise by the vendee of his rights with the consent of the vendor. 20. If goods are sold on “sale or return”, the risk of loss of the thing sold remains with the seller after its delivery to the buyer. 21. In “sale on approval”, the buyer becomes the owner of the thing upon delivery, but he may revert such ownership to the seller by returning it. 22. The delivery of specific goods to a carrier or other bailee for the purpose of transmission to the buyer generally transfers ownership of the goods to the buyer. 23. When a thing is purchased from the merchant’s store, fair or market, the buyer acquires title to the thing although the seller may have stolen it or acquired it from a thief. 24. A warehouse receipt is also a contract between the warehouseman and the depositor of the goods. 25. A bearer document of title becomes an order document of title if it is specially indorsed. 26. The delivery of an order document of title without any indorsement does not constitute negotiation. 27. A negotiable document of title becomes non-negotiable if it is stamped with the mark “non-negotiable”. 28. If the goods sold are in the possession of a third person, the seller is deemed to have delivered the goods to the buyer if the third person acknowledges to the buyer that he holds the goods in the buyer’s behalf. 29. If a period has been fixed for the payment of the price which has not yet arrived, the seller in the meantime is bound to deliver the thing sold. 30. An unpaid seller exercising his right to resell the goods may buy the goods either directly or indirectly. 31. When an unpaid seller exercises his right of stoppage in transit, the contract of carriage ceases, the carrier becoming liable as a depositary. 32. If real estate is sold for a lump sum, the vendor is bound to deliver all that is included within the boundaries stated in the contract although the actual area is greater that than stated in the contract. 33. If the same immovable is sold to two or more persons who are all in good faith, ownership shall belong to the buyer who first paid its price.
In order that the buyer may enforce the seller’s liability for breach of
warranty against eviction, the judgment depriving the buyer of the thing must first be appealed by the buyer. 35. The vendor’s liability for breach of warranty against eviction may be validly waived by the vendee. However, the vendor will still be liable if the waiver was made by the vendee without knowledge of the risks of eviction. 36. As a rule, the vendor shall not be liable for a non-apparent easement that is recorder in the Registry of Property. 37. The vendor shall be liable generally for any defect on the thing sold even if he was not aware thereof. 38. When animals are sold as a pair, the vendee may ask for the rescission of the sale of both animals although only one of them suffers from redhibitory defect. 39. The sale of animals suffering fro contagious diseases is voidable. 40. There is no warranty against hidden defects of animals sold at fairs or at public auctions,or of animals sold as condemned. 41. Acceptance of the goods by the buyer generally discharges the seller from his liability for ay breach of warranty. 42. If the buyer is justified in refusing to accept the goods, he shall be obliged to hold the goods as depositary. 43. The buyer is obliged to pay interest on the price of the goods for the period between the delivery of the goods and the payment of the price if the thing sold produces fruits or income. 44. The buyer may suspend the payment of the price of the thing purchased by reason of trespass on the thing. 45. A stipulation that the sale of an immovable is automatically rescind upon the default of the buyer in the payment of the price is valid. 46. In conventional redemption, the creditors of the vendor may make use of the right of redemption against the vendee although they have not exhausted the properties of the vendor. 47. In case of doubt, a contract purporting to be a sale with a right to repurchase shall be construed as an equitable mortgage. 48. For an assignment of credit to be binding against third persons, if a movable object property is involved, the same must be in a public instrument and recorded in the Registry of Property. 49. A debtor who has paid his creditor before he learns of the assignment of his debt shall be released from his liability to the assignee. 50. The debtor’s consent is required for the validity of the assignment of the credit made by his creditor to another person.