#Test Bank - Cpar Sales

TEST BANK SALES, AGENCY and PLEDGE

1.Unless there is stipulation to the contrary the expenses for the execution or registration of the sale shall be borne by: A. B. C. D.

The Vendee The Vendor The Vendee and Vendor The agent or broker

2. A offered to sell his lot to B for P100,000. In his offer to sell it was stated that he is given 60 days to prepare the P100,000 and as soon as B is ready with the money, A will execute a deed of sale. Before the end of 60 days, A informed B that price of the lot was increased to P120,000. May B, compel A to accept P100,000 offered previously by A and make him execute the deed of sale? A. B. C. D.

Yes, because A already signed his offer No, For B never signified his acceptance of A’s offer. Yes, because there was actual meeting of minds of the parties Answer not any of the above.

3. A wrote a letter to B wherein A offered to sell a piece of land to B for P200,000. B signified his desire to buy the land. In A’s letter he gives B a period of two (2) months within to produce the P200,000. After 45 days, A told B that the price of the land is now P250,000. Can B compel A to accept the P200,000 first offered by A and execute the deed of sale? A. B. C. D. 4.

Yes, because there was actual meeting of the minds of A’s offer No, for B did not signify his acceptance of A’s offer Yes, because A is already estoppels by his signed letter Yes, because the period of two (2) months has not expired

Mr. AB owes Mr. CD P150,000 due on August 1, 2010. Mr. AB executed mortgage in favor of Mr. CD on Mr. AB’s building to guaranty the obligation. On August 10, 2010, the mortgage building was totally lost due to a strong typhoon. On August 12, 2010, Mr. CD demanded payment from Mr. AB. Is Mr. CD’s demand valid? A. No, the obligation is one with a definite period, thus the creditor cannot demand fulfillment of the obligation as such would the prejudicial to the rights of the debtor. B. No, the obligation is extinguished because the obligation is lost through a fortuitous event. C. Yes, the debt becomes due at once because the guaranty was lost even through a fortuitous event. Unless the debtor can mortgage another property that is equally satisfactory. D. Yes, the debt becomes due at once because, from the tenor benefit is given solely to the creditor thereby giving the creditor the right to demand performance even before the date.

5.

Mrs. Go sold and delivered her diamond ring to Mrs. Pat. It was agreed upon that after ten (10) days Mrs. Pat will name and fix the price. On the tenth (10th) day, Mrs. Pat called up by telephone Mrs. Go and stated the price at P10,000. Mrs. Go agreed. IS the sale perfected? A. Yes, the price stated and named by one of the contracting parties was accepted by the other. B. No, at the time of the sale the price was not fixed. C. No, the price was left to the discretion of one of the parties D. No, at the time of the sale the price is not known.

6. Mr. Sy sold a parcel of land to Mr. Tan for P200,000. Mr. Sy delivered the transfer Certificate of Title of the land to Mr. Tan. Later, Mr. Tan wanted to register the land to his name and he needed a Deed of Sale. What can Mr. Tan do? A. Mr. Tan can compel Mr. Sy to execute a Deed of Sale B. Mr. Tan cannot compel Mr. Sy to refund the P200,000 because the contract is not enforceable C. Mr. Tan can sue Mr. Sy enriching himself at the expense of another. D. Mr. Tan can possess and utilize the land as a buyer in good faith. 7. Bonds which are not secured by any specific mortgage lien of pledge or corporate property but by the general corporation are: A. B. C. D.

Guaranteed bonds Debenture bonds Income bonds Redeemable bonds

8. The buyer of a thing has the right to the fruits of the thing: A. B. C. D.

From the time the thing bought is delivered From the time the sale is perfected From the time the obligation to deliver the thing bought arises. From the time the fruits are delivered.

9. Three (3) of the following are option money. Which is the earnest money? A. B. C. D.

Given when contract of sale is perfected. Given when there is no contract of sale. Given to bid the offer or in a unilateral promise to sell or to buy. Given as a separate consideration from purchase price.

10. In a sale, this is actual delivery. A. B. C. D.

Execution and signing of the sale document. When the goods sold are placed in the control and possession of the buyer. Delivery by the seller to the buyer of the key where the goods sold are kept. The buyer is already in actual possession of the goods.

11. This is a mode to extinguish an agency: A. B. C. D.

Death of the principal, but the agency is for the interest of the principal and agent. Partial accomplishment of the agency. Upon withdrawal of the principal. Insanity of principal or agent.

12. D pledged his Singer Sewing Machine to C for P8,000. D was unable to pay the obligation 60 days after it was due. C sold the machine at public auction for P6,000. A. B. C. D.

C cannot recover the deficiency of P2,000 even if there is stipulation that he can. C can recover the deficiency of P2,000 even without stipulation. C cannot recover the deficiency of P2,000 C can recover the deficiency of P2,000.

13. In a sale, the buyer is entitled and has the right to the fruit of the thing sold from the time: A. B. C. D.

The obligation to deliver the thing sold arises The sale is perfected The thing sold is delivered The fruit of the thing sold is delivered.

14. Mr. AB offered in writing to sell his house and lot for P750,000 to Mr. CD on July 1, 2010. Mr. CD requested Mr. AB to give him 60 days within which to raise the P750,000. On August 15, 2010 Mr. AB informed Mr. CD that the price is raised and now at P1,000,000. Can Mr. CD compel Mr. AB to sell his house and lot at P750,000 which was offered in writing by Mr. AB? A. B. C. D.

Yes, because Mr. AB is already stopped by his written offer. Yes, because the 60 days offer has not yet expired No, because Mr. CD has not accepted the offer of Mr AB. Yes, there was meeting of the minds.

15. In distinguishing Earnest Money from Option money, earnest Money is: A. B. C. D.

Given when there is no contract of sale, Given only when there is perfected contract of sale. Given to bind the offer or in a unilateral promise to sell or buy Given as a separate consideration from the purchase price.

16. Gay appointed May to sell the former’s car for P200,000. May sold the car to Pam, Pam inspected the car and found hidden defects in the car. Can Pam file an action against Gay even when May acted in her own name? A. B. C. D.

No, under “Caveat Emptor” let the buyer beware. Yes, because this is contract involving property belonging to the principal No, because, May acted in her own name not of the principal. No, because the contract of sale is already perfected.

17. Mr. San authorized Mr. Soy to sell his car for p200,000 with 5% agent’s commission. Mr. Soy sold the car to Mr. Dy for P250,000. For how much is Mr. Soy accountable to Mr. San? A. B. C. D.

P200,000 P190,000 P250,000 P240,000

18. B pledged his Rolex to C for P4,000. B failed to pay C the P4,000 on due date. C sold the Rolex watch at a public auction to the highest bidder at P3,500. A. B. C. D.

C can recover the deficiency of P500 from B. C can recover the deficiency of P500 even without stipulation. C cannot recover the deficiency of P500 unless there is stipulation. C cannot recover the deficiency of P500 even if there is stipulation.

19. Which of the following may not be the object of sale? A. B. C. D.

Things having potential existence The sale of a vain hope or expectancy Future goods Answer not given.

20. When delivery takes place by the mere consent or agreement of the contracting parties as when the vendor merely points to the thing sold which shall thereafter be at the control and disposal of the vended if the thing sold cannot be transferred to the possession of the vendee at the time of sale, delivery is effected: A. B. C. D.

By tradition symbolica By traditio longa manu By traditio brevoi manu Answer not given

21. The distinction between a chattel mortgage and a pledge is that in chattel mortgage: A. B. C. D.

The delivery of the personal property is necessary The registration of the property in the Registry of Property is not necessary The excess over the amount due after foreclosure, goes to the debtor Answer not given.

22. Sale is distinguished from dation in payment in that in sale A. B. C. D.

There is a pre-existing obligation or credit The cause is the price It is a mode of extinguishing an obligation in the form of payment. Answer not given.

23. Mr. Mar orders for his workers 1,000 pieces of T-shirt ranging in size from small to large from RDG Garments Mfg. Corp. The specified sizes, although not then available, are manufactured by said corporation and consigned to its sales outlets regularly. The contract entered into by Mr. Mar with the RDG Garments Mfg. Corp. is a: A. B. C. D.

Contract for a piece of work. Contract subject to a resolutory condition A contract of sale Answer not given

24. Mr. Amado owes the BIR P100,000 in delinquent taxes and penalties. In order to evade the payment of said liability, he executed a deed of sale of his only parcel of land valued for P200,000 in favor of his brother Pedro, where P20,000 was stated as the purchase price but the BIR has evidence that said price had never been paid, the purpose of the sale being to prevent the BIR to levy upon the land to satisfy the tax liability of Mr. Amado. In this case: A. The BIR may not levy upon the land because the sale is void B. The BIR without annulling the sale may levy upon the land of Amado pursuant to the provisions of the National Internal Revenue Code C. The BIR should first annul the sale before it may levy upon the land pursuant to the provisions of the National Internal Revenue Code. D. Answer not given. 25. Mr. Rene owns a mango tree bearing fruits, ready for harvest. He sells all the fruits of that tree to Mr. Mar who pays Mr. Rene the sum of P5,000. Rene tells Mar that he can just harvest the fruits anytime he likes pointing at the particular tree. For legal purposes, Rene has fulfilled his obligation to deliver the mango fruits to Mar by: A. Traditio brevi manu B. Traditio longa manu C. Traditio simbolica

D. Answer not given 26. Mar Garci, before going to Spain appointed Jc Legaspi as his agent to administer his properties in the Philippines. Afterwards, Legaspi wrote Garci that he ( Legaspi) was withdrawing from the agency because of failing health. Legaspi, in the same letter said that he appointed Eg Legaspi as his substitute and that Mar should extend a new appointment to Eg. Eg took over the duties of Jc but Mar did not bother to appoint Eg to act as his agent until Mar’s death. Now Mar’s heirs brought an action against Eg for accounting. Eg raised the defense that he was not validly constituted as an agent of Mar. In the case at bar, defense is not tenable because there is: A. B. C. D.

An actual agency An implied agency A general agency Answer not given

27. Maria is authorized by Dulfo to sell the latter’s washing machine for P5,000 each at 10% commission. One day, Dulfo sells one washing machine to Carla on credit (payable in 90 days) but for a price of P6,000. If Dulfo does not ratify this sale on credit, he can collect cash payment from Maria: A. B. C. D.

P4,500 (P5,000 less P500 commission) P5,000 (the price without commission) P5,400 (P6,000 less P600) Answer not given

28. Tony sold a piece of land to Rene binding himself not to sell the same to another person. On the following day, Tony sold the land to Carla who immediately took possession in good faith. In the case at bar, the proper remedy of Rene is to: A. Institute an action for the annulment of the sale to Carla B. Institute an action for the recovery of the land C. Institute an action for damages against Tony D. Answer not given 29. Ces kidnapped and tortured Ed for refusing to sell his (Ed’s) land to Ces. Ed who could no longer bear the physical pains inflicted upon him signed a document of sale in favor of Ces. This sale is: A. B. C. D.

Void Voidable Valid Answer not given

30. A sold a residential land to B. B paid the consideration. When B wanted to register the sale at the Register of Deeds, the latter refused to register and requires the presentation of the certificate of capital gains tax payment. What can B do? A. B may sue A to refund the consideration paid by B under the maxim, “no one shall enrich himself at the expenses of another.” B. B cannot compel A to return the selling price because the contract is not enforceable C. B may possess the residential land as a buyer in good faith D. B may compel A to pay the capital gains tax and secure the certificate of capital gains tax payment

31. A Seller sold to a Buyer a piece of jewelry at a price of P20,000. The contract provides that the Buyer will pay Seller a micro wave oven worth P5,000. What is the nature of the contract? A. B. C. D.

Sale Partly sale and partly barter Barter Commodatum

32. Mr. A. Abad signed a letter addressed and delivered to Mr. B. Baje. The terms of the letter are: 1. 2. 3. 4.

An offer to sell a 500 sq.m. lot for P300,000 An option time up to October 31, 2010 for Mr. Baje to raise the P300,000 Upon payment of the P300,000, Mr. Abad will execute and sign a Deed of Sale On October 31, 2010, Mr. A Abad sent a letter to Mr. B. Baje asking for a new price of P350,000 for the 500 sq. m. lot.

Can Mr. B. Baje compel Mr. A. Abad to accept the P300,000 and make him sign and execute a Deed of Sale? A. B. C. D.

No, Mr.B. Baje did not accept the offer of Mr. A. Abad Yes, Mr. A. Abad is already stopped by his sighing the letter and offer. Yes, there was actual meeting of the minds. Yes, the contract is perfected

33. Mr. A mortgaged his residential land to Mr. B as a guarantee for the payment of P400,000 obligation of Mr. A. They agreed that Mr. A shall not sell the land while the obligation exists. The maturity of the mortgaged, C offered to buy the land from Mr. A. A. B. C. D.

A cannot sell the land to Mr. C because of the agreement not to sell A can sell the land to Mr. C only if B consents in writing A can sell the land to Mr. C despite the agreement not to sell (?) A cannot sell the land to Mr. C unless A pays the obligation

34. Mr. D. Dy constituted Mr. S. Sim as his authorized agent to sell the former’s Lancer car for P300,000 and to pay him a 5% commission on the selling price. Mr. S. Sim sold the car for P320,00. Mr. S. Sim shall remit to Mr. D Dy: A. B. C. D.

P300,000 P320,000 P285,000 P305,000

35. Ownership of the thing sold is transferred / acquired / retained: A. B. C. D.

Retained by the seller in “sale of return” Transferred to the buyer upon constructive or actual delivery of the thing sold Acquired by the buyer upon Transferred to the buyer upon acceptance of the price.

36. If redemption is made, which of the following will not be paid by the seller to the buyer A. B. C. D.

Price paid by the buyer Expenses in the execution of the sales contract paid by the buyer All necessary expenses on the thing sold and to be redeemed Interest of the price paid by the buyer

37. The following are requisites of Pledge except: A. B. C. D.

The disposal of the pledge The absolute ownership of the property pledged The thing pledge may be placed in the possession of a third person To bind a third person, it must be recorded in the office of the Register of Deeds

38. The leviable properties of the debtor are transferred to the creditors to be sold and from the proceeds, the creditor are paid; A. B. C. D.

Pledge Cession Dacion en pago Chattel mortgage

39. A characteristic of the Contract of Sale which involves exchange of value, it is A. B. C. D.

Commutative Nominate Bilateral Consensual

40. The principal is not liable for expenses incurred by the agent: A. When it was stipulated that the agent would only be allowed a certain sum B. When the agent has complied with his obligations by acting according to the principal’s instructions C. When the agent incurred them with the knowledge that an unfavorable result would ensue and the principal was aware of it D. When the expenses were incurred without the fault of the agent 41. An assignor of credit warrants: A. B. C. D.

Solvency of the debtor Existence and legality of credit Collectibility Assurance of payment

42. A appoints B to sell his land Example 1. If the authority of B is oral and B sells the land in writing. The sale is valid. Example 2. If the authority of B is in writing and B sells the land orally. The sale is valid A. B. C. D.

Both examples are true Both examples are false First example is true, but the second example is false First example is false but the second example is true

43. Which of the following is not a characteristic of Sale? A. B. C. D.

Bilateral Gratuitous Consensual Nominate

44. The following are the alternative remedies, except one available to the buyer in case of breach of warranty by the seller: A. B. C. D.

Keep the goods and ask for damages Refuse to accept the goods and ask for damages Rescind the sale and retain the goods Keep the goods and set up against the seller by way of recoupment in price.

45. Which of the following statements is true and correct? A. In a Contract of Sale, the full payment of the price is in the nature of a suspensive condition in that the seller is obligated to transfer ownership of the thing sold. B. The seller need not be the owner of the thing sold at the perfection of the sale. C. There may be a transfer of ownership over the thing even if the seller has not delivered the thing sold to the buyer. D. In a Contract of Sale, the buyer becomes the owner of the thing sold upon full payment of the purchase price. 46. X, Y and Z were appointed by R as his agents to administer his building which was rented by various tenants while R was abroad for three years. In the course of management, X cause through his fault damage to the building which was assessed at P30,000. R can claim: A. B. C. D.

P10,000 from each of X, Y and Z. P30,000 from X P30,000 from Y and Z P30,000 from either X, Y and Z

47. Pledge and Mortgage are accessory contracts because they: A. B. C. D.

Are meant to secure the fulfillment of a principal obligation. Cannot exist if the principal obligation is void. Can exist by themselves. Cannot secure fulfillment of rescissible obligation.

48. Mr. A offered to sell his land to Mr. B for P300,000. Mr. B accepted the offer and paid Mr. A the purchase price. Mr. A delivered the owner’s certificate of the Transfer certificate of Title to the land. Mr. B wants to register the land in his name but the Register of Deeds asks Mr. B for the Deed of Sale. What can Mr. B do ? A. B. C. D.

He may occupy the land as a buyer in good faith. He cannot compel Mr. A to return the payment because the contract is unenforceable. He may compel Mr. A to execute the Deed of Sale because the contract is valid. He may sue Mr. A to return the purchase price under the legal principle that no one may enrich himself at the expense of another.

49. Pacto de retro sale as distinguished from mortgage: A. B. C. D.

There is redemption by payment principally of the debt. There is no transfer of possession of the thing sold There is no foreclosure unless it is declared as an equitable mortgage. There is no transfer of ownership of the thing sold.

50. A is authorized by B to sell the latter’s books for P100 each. A sells 10 books to C on credit but for a price of P120 each. After ratifying the sale on credit, B can collect. After ratifying the sale on credit, B can collect cash payment from C. A. P1,000

B. P1,200 C. P1,080 D. P 900 which is the object of the sale. II. Payment of price is essential to delivery of the thing sold. A. B. C. D.

Both statements are true. Both statements are false First statement is true, second statement is false. First statement is false, second statement is true.

52. Three of the following are essential requisites of a contract of mortgage. Which one is not? A. B. C. D.

The person instituting the mortgage has the free disposal of his property. The contract must be in writing. The mortgagor is the absolute owner of the thing mortgaged. The mortgage is constituted to secure the fulfillment of a principal obligation.

53. In real mortgage, the following rules are valid, except one: A. A stipulation in the mortgage contract prohibiting the owner from alienating the immovable mortgaged is valid. B. The mortgage may alienate the mortgage credit or assign to a third person in whole or in part. C. Any stipulation allowing the mortgage creditor to appropriate the property mortgaged is null and void. D. If alienation of the mortgage credit is not registered, it is still valid between the parties. 54. A wrote a letter to B wherein A offered to sell his piece of land to B for P200,000. B signified his desire to buy the land. In A’s letter, he gives B a period of two (2) months within which to produce the P200,000. After 45 days, A told B that the price of the land is now P250,000. Can B compel A to accept the P200,000 first offered by A and execute the deed of sale? A. B. C. D.

Yes, there was actual meeting of the minds of the parties No, for B did not signify his acceptance of A’s offer. Yes, because A is already stopped by his signed letter Yes, because the period of two months has not expired.

55. A and B are good friends. A sold and delivered his car to B. It was agreed and understood that on the next Sunday A will name and fix the price of the car. Sunday came. A called B by phone and stated and fixed the price at P150,000. Is the sale perfected? A. B. C. D.

Yes. The price was stated and fixed on the date agreed upon. No. The price was left to the discretion of the seller. No. at the time of the sale, the price is not fixed. No. The price fixed by the seller was not accepted by the buyer.

56. In sale, this is actual delivery: A. B. C. D.

Execution and signing of the sales document. When the goods sold are p0laced in the control and possession of the buyer. Delivery by the seller to the buyer of the key where the goods are kept. The buyer is already in actual possession of the goods.

57. This is a mode of extinguishing an agency: A. B. C. D.

Death of the principal, but the agency is for the interest of the principal and agent. Partial accomplishment of the agency. Upon withdrawal of the principal. Insanity of the principal or agent.

58. D pledged his Singer Sewing Machine to C for P8,000. D was unable to pay the obligation 60 days after due date. C sold the machine at public auction for P6,000. A. B. C. D.

C cannot recover the deficiency of P2,000 even if there is stipulation that he can. C can recover the deficiency of P2,000 even without stipulation. C cannot recover the deficiency of P2,000 C can recover the deficiency of P2,000.

59. In a contract wherein a person binds himself to render special service to do something in behalf of another with consent of the latter. A. B. C. D.

Contract of piece of work Contract of service Contract of agency Contract of exchange

60. Which of the following obligations of the vendor cannot be waived: A. B. C. D.

To allow the buyer to examine the goods sold. To transfer ownership to the buyer. To pay the expenses of the deed of sale. To warrant the thing sold.

61. A appoints B as his agent to sell his land, which of the following is valid: A. The authority of B is in writing and the sale of the land in favor of C is oral. B. The authority of B from A is by way of letter and B sells the land to C in writing. C. The authority of B is oral and B sells the land to C for P50,000 in a written contract of sale. D. When goods are delivered to an agent to be sold by him and the agent is not liable to the manufacturer of the goods. 62. A stipulation whereby the pledge or mortgagee automatically becomes the owner of the thing pledged or mortgaged: A. B. C. D.

Pactum commisorio Consolidation of ownership Conventional redemption Consignation

63. Which of the following statements is true and correct: A. Pledge and mortgage are accessory contracts because they cannot exist by themselves. B. In both pledge and mortgage, the creditor is entitled to deficiency judgment. C. Where an obligation is secured by a pledge or mortgage and it is not paid when due the pledge or mortgagee may dispose of the thing pledged or mortgaged if there is an agreement to that effect between the parties.

D. Unless otherwise agreed upon by the parties, the sale of the mortgage property extinguishes in full the obligation of the mortgagor to the mortgagee. --------------------------------------------------------------------------------------------------------------------64. I. A sales contract is a real contract because no ownership is transferred unless there is delivery. II. A sales contract is a real contract because the seller suffers the risk of loss until the object of the sale has been delivered. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

65. A sells to B for P25,000 all the mango fruits to be harvested from the mango orchard which A plans to buy. I.

The sale is valid because the mango fruits have potential existence.

II. The sale is valid because the object of the contract need not exist at the time of the contract. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

66. A who plans to buy a piece of land from B, enters into contract of sale respecting the same land with X for the price of P100,000. The contract is in writing. I. The sale is not valid because a seller cannot sell that which he does not own. II. The sale is not valid because a public document is required. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

67. Husband owes C. Subsequently, husband sold his car to his wife. If husband cannot pay C on due date: I. C can question the sale because the sale prejudices C, a creditor. II. C can question the sale because husband is relatively disqualified to enter into this kind of sale. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

68. A sells his TV set to B for P50,000 on sale or return. Subsequently, the TV set is lost by fortuitous event. I.

The risk of loss pertains to the seller because the buyer is not at fault.

II. The risk of loss pertains to the seller until the buyer signifies to the seller that he accepts the TV set. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

69. A offered to sell for P500,000 his house and lot to B who was interested in buying the same. A gave B thirty days to raise the amount and as soon as B is ready they will sign the deed of sale. On the 25th day, A notified B that he is no longer willing to sell the property unless the price is increased to P550,000. I. B can compel a to accept the P500,000 first offered because there exists a bilateral offer to sell and to buy a definite property for a definite price. II. B cannot compel A to accept the P500,000 because this is merely an unaccepted unilateral promise to sell. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

70. I. A promise to buy and sell a determinate thing for a price certain is reciprocally demandable. II. An accepted unilateral promise to buy or to sell a determinate thing for a price certain is binding upon the promissor if the promise is supported by a consideration distinct from the price. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

71. A specific boat was sold to B for the price of P1 million on credit. Shortly after perfection of the sale but before delivery, the boat was destroyed by a fortuitous event. I. The seller suffers the loss because at time of loss he was still the owner. II. The buyer suffers the loss because if it were not for the fortuitous event ownership would have transferred to him. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

72. I. Should fungible things be sold for a price independently and for a single price, the risk of loss before perfection pertains always to the seller. II. Should fungible things be sold for a price fixed according to weight, number or measure the risk of loss pertains to the buyer after perfection even before delivery. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true.

D. Both statements are false 73. Maria purchased a quantity of bed sheets which were wrapped up in bales. The sale was done in the warehouse of Seller. Some bed sheets were pulled out from the bales displayed and fount to be all right. Maria then purchased 100 bales and paid the price. After delivery, Maria discovered that some of the bed sheets contain holes. I. Maria can return the bed sheets and recover the money she paid. II. Maria cannot return the bed sheets and recover the money she paid because the principle “caviat emptor” applies. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

74. A entered into a contract of sale of his car to B for a price of P50,000. The terms are: Upon payment of P20,000 A shall deliver the car and the balance to be paid after one month. B also executed a chattel mortgage on the car to secure the payment of the balance. B defaulted in the payment of the balance, therefore A foreclosed the mortgage. The proceeds realized in the foreclosure sale were not sufficient to pay the entire balance. I. A can still recover the deficiency. II. A cannot recover the deficiency because the law prohibits him from doing so. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

(?)75. Guardian sells the property of the ward to X for a price certain. The property is rural land, area 1 /2 hectare. X already owns rural land. Guardian is an adjacent owner of 1/ 4 area and the other adjacent owner is C of 1/ 2 hectare. I. Guardian cannot legally redeem because he is relatively incapacitated. II. Guardian cannot legally redeem because he is the owner of a lesser area. 76. S owns 10 sacks of rice for sale in his store. B came into the store and buys the 10 sacks at the price of P1,200 per sack and promised S to pay as soon he is paid for the bags of cement which are then being unloaded from a truck parked opposite the store. Upon request of B, S ordered the loading of the sacks of rice on the truck, continuously watching the loading. After the sacks of rice were loaded on the truck, B did not appear to pay the price. So S again ordered the unloading of the sacks of rice. At this moment, the driver of the truck objected to the unloading of the sacks of rice claiming the he purchased the sacks of rice from B and therefore acquired ownership thereof. I. S cannot order the unloading because B acquired ownership when the sacks or rice were loaded on the truck. II. S cannot order the unloading because ownership was transferred to the driver by B who had ownership of the sacks of rice. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

77. I. If seller has ownership he can always transfer ownership. II. If seller has ownership but no possession he cannot transfer ownership by constructive delivery. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

78. I. A contract of “sale or return” is a sale with a resolutory condition. II. A contract of “sale on trial or approval” is a sale with a suspensive condition. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

79. I. If the bill of lading covering the goods sold is by its terms the goods described therein are deliverable to the order of the seller, and retained by the seller, the seller has reserved his ownership over the goods. II. If the bill of lading is by its terms the goods described therein are deliverable to the order of the buyer and retained by the seller, the seller ha reserved his right of possession of the goods as against the buyer. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

80. B bought a pair of shoes from shoe store and repair shop. It was later discovered that the pair of shoes bought by B belonged to a customer who left it there for repair. I. B acquired ownership provided he acted in good faith. II. B did not acquire ownership because a seller cannot transfer ownership if he himself has no ownership. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

81. I. An unpaid seller loses his possessory lien after he has delivered the goods to a carrier for the purpose of transmission to the buyer without reserving the ownership in the goods or the right to the possession thereof. II. The unpaid seller who loses his possessory lien does not lose his lien for the payment of the purchase price. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

82. I. Once the goods have been accepted by the buyer, the seller is no longer responsible to him for any breach of warranty. II. Acceptance by the buyer does not as a general rule release the seller from liability for breach of warranty. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statement are false.

83. A enters into a contract of sale with B respecting 2 immovables for P200,000, the boundaries are mentioned and the area is 20,000 sq. meters. I. The seller shall suffer a proportionate reduction in price if the area delivered is less than the area specified in the contract even though the boundaries were followed. II. The seller shall also be entitled to a proportionate increase in price if the area exceeds the number specified in the contract. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

84. S sells his piece of land to B for P100,000. Consequently, another contract was entered into between the parties whereby B leases the land to S. I. This contract shall be construed as an equitable mortgage. II. This contract is a contract of sale with leaseback. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

85. A sold his piece of land to B last November 10, 2009. I. S shall repurchase the land within 4 years from date of sale. II. S shall have within 10 years from date of sale to repurchase the land so long as the period of repurchase shall not exceed 10 years. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

86. A, B and C are co-owners of rural land with an area of 9 hectares. A sold his undivided interest to X who does not own rural land. I. B and C cannot legally redeem because the sale was an absolute sale. II. B and C as co-owners can legally redeem for the purpose of reducing the number of coownership. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true.

D. Both statements are false. 87. I. Conventional redemption is a privilege. II. Legal redemption is a right granted by law. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

88. A sold his piece of land to B with a right of repurchase when A has sold his car. I. A can repurchase within 4 years from date of sale. II. A can repurchase within 4 years from date of sale of his car. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

89. P authorized his agent to direct and administer his commercial business, among others “to collect sums of money and exact their payment by legal means.” I. A can bring a court action for collection provided he brings it in the principal’s name under his agency. II. A needs a special power of attorney to bring a court action because the agency of A pertains only to acts of administration. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

90. I. A special power to mortgage includes the special power to constitute a second mortgage. II. A special power to mortgage does not include the power to sell. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

91. Agent was authorized by Principal to sell the latter’s TV set for P10,000 on the installment plan. A was able to sell it for P10,000 cash basis. I.

The sale is not binding upon the principal unless the principal ratifies it.

II. The sale is not binding upon the principal because the agency was performed in a manner not included in the agency. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

92. I. An agency cannot revoked at principal’s will if the agency depends upon a bilateral contract. II. An agency cannot be revoked at principal’s will if the agency is for a compensation. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

93. A and B were appointed simultaneously by P as his agents. Solidary liability of the agents was stipulated. I. Any one of the agents shall be liable for any damage suffered by the principal for the nonperformance of the agency. II. Solidary liability will apply in case of damages suffered by the principal caused by the negligence of either agent provided the agent acted within the scope of his authority. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

94. On September 1, 2010, P owns a piece of land gave a general power of attorney to A. On October 1, 2010, P, without the knowledge of A executed in favor of C a special power of attorney to sell said piece of land. November 10, 2010, A as attorney-in-fact of P executed a deed of sale over the piece of land in favor of X. On the same date, C under the special power given by P, sold the same piece of land t Y. Both purchasers acted in good faith. X registered his sale. Y did not. I.

The sale in favor of X must be respected because he registered it in good faith.

II.

The sale in favor of Y must be respected because C was specially granted with authority to sell.

A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

95. A, B and C appointed Z as their agent to sell their separate houses. The appointment was made under one special power of authority. I.

A, B and C shall be solidarily liable under the agency to Z

II. A, B and C shall be jointly liable under the agency to Z even though the appointment was made in one common instrument because A, B and C are not co-owners. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

96. I. The pledge extends to the interest and earnings of the thing pledged unless there is a stipulation to the contrary.

II. In case of pledge of animals, their offsprings shall be subject to the pledge if there is a stipulation to that effect. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

97. If there are reasonable grounds to fear the destruction or impairment of the thing pledged without the fault of the pledge: First statement is true, second statement is false. I. The right of the pledgor to demand the return of the thing, upon offering another thing in pledge, provided the latter is of the same kind as the former and not of inferior quality must always be respected. II. The right of the pledge to cause the thing pledged to be sold at a public sale is subordinate to the above right of the pledgor. A. B. C. D. 98. I. II. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false. The creditor pledge cannot appropriate the thing pledged. But he can dispose of the thing pledged with the consent of the pledgor. First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

99. I. A mortgage or pledge is indivisible although the principal obligation is divisible. II. The principal obligation must be necessarily indivisible because the mortgage or pledge securing is indivisible. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

100. A borrows P10,000 from B, so A delivered his diamond ring to B as a pledge to secure his obligation. The contract of pledge was executed in a public document but the description of the ring and the date of the pledge did not appear thereon. A, pledgor alienates the ring in favor of C. I. C has to respect the pledge because the contract of pledge is in a public document. II. C has to respect the pledge if the alienation of the pledged was consented to by the pledge. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

101.I. A stipulation in a contract of pledge allowing the pledge to purchase the thing pledged at the current purchase price if the debt is not paid on time is valid.

II. A stipulation in a contract of pledge allowing the pledgor to assign the thing pledged to the pledge in payment of the debt due is not paid on time is valid. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

102.I. Future property cannot be the object of a pledge or mortgage unless there is a stipulation to the contrary. II. Future property cannot be the object of a pledge or mortgage unless there is a stipulation to the contrary. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

103.I. Two things are prohibited in a pledge or mortgage, which are: (a) the appropriation by the pledge or mortgagee of the object of the pledge or mortgage and (b) the disposition of the object by the pledgor or mortgagor. II. Two things are prohibited in a pledge or mortgage, which are: (a) the disposition of the object by the pledgee or mortgagee and (b) the return of the pledge or mortgage to the pledgor or mortgagor before debt is fully paid. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

104.A, minor borrows P10,000 from B. To secure A’s debt, X a good friend of A pledges his gold watch to B. I. The pledge is not valid because the principal obligation is not valid. II. The pledge is not valid, the thing pledged should belong to the debtor. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

105.I. In mortgage and chattel mortgage there is recovery of deficiency as a general rule. II. In pledge, absolutely, there is no recovery of deficiency. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

106.A and B are co-owners of a piece of land. They mortgaged their land in favor of C. While the mortgage debt is pending, A and B partitioned the land between them. On due date, A paid his share of the debt of C. I. The mortgage on A’s share of the land is extinguished. II. The mortgage on A’s share cannot be extinguished unless B pays his share of debt.

A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

107. I. Unless there is stipulation to the contrary, the debtor mortgagor can alienate the property mortgage. II. The debtor mortgagor can alienate the property mortgaged with the consent of the mortgagee. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

108. A, minor borrows money from B. The contract although voidable is secured by a pledge or mortgage of A’s property. I. A can validly constitute a pledge or mortgage of his personal or real property. II. The pledge or mortgage constituted by a minor is valid provided he is the absolute owner of the property pledged or mortgaged. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

109.A, agent is authorized by Principal to lend money of the principal. I. A, the agent can borrow the money provided the loan is without interest. II. A, the agent cannot borrow the money if the loan is with interest. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

110.I. Agency is a nominate, principal, unilateral, preparatory, commutative and generally onerous contract. II. Agency is a nominate, accessory, bilateral, preparatory, commutative and generally onerous contract. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

111. I. A general power of authority may also include a special power. II. A special power of authority does not include a general power. A. First statement is true, second statement is false. B. First statement is false, second statement is true. C. Both statements are true.

D. Both statements are false. 112 I. If the third person contracts with the agent knowing that the agent exceeds the scope of his authority, the contract is void not only as against the principal but also as between agent and the third person. II. If a third person contracts with the agent knowing that the agent exceeds the scope of his authority the contract is void as against the principal but valid between the agent and the third person. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

113.I. In mortgage the mortgagor may alienate the property mortgaged. II. In mortgage the mortgagee may alienate the mortgage credit. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

SALES (cpar) 1.As a rule, this contract of sale involving a piece of land is void, A. B. C. D. 2.

Between a minor and a capacitated person. Between two insane persons who did not act during lucid interval Between first degree cousins Between husband and wife

X, 17 years old, sold to Z, of legal age, her necklace worth P20,000 for P15,000. Later, Z sold the necklace to Y for P20,000. Which of the following statements is correct? A. X has got a voidable title because at the time of sale, she is a minor B. X can ask for rescission of the sale to Y because she suffered a lesion of more than ¼ of the value of the property. C. If Y is in bad faith, Y becomes the owner of the necklace upon delivery to him but his title is voidable. D. X can ask for the annulment of the sale to Y because at the time of sale she is a minor.

3. This serves as a proof of the perfection of the contract of sale A. B. C. D.

Dacion en pago Option money Delivery Arras

4.A contract of sale is not a(an) A. Onerous contract

B. Accessory contract C. Commutative contract D. Bilateral contract 5.Warranty against hidden defects is A. B. C. D.

An essential element A natural element An accidental element An artificial element

6. 7. When a sale of a piece of land or any interest therein is through an agent, the authority of the agent shall be in writing, otherwise the sale is A. B. C. D.

Valid Voidable Unenforceable Void

8. The sale of an expected thing A. B. C. D.

Dacion en pago Payment by cession Emptiospei Emptio rei-speratae

9. The sale of the hope itself A. B. C. D.

Dacion en pago Payment by cession Emptio spei Emptio rei-speratae

10. One of the following is not correct A. Things subject to a resolutory condition may be the object of the contract of sale. B. A thing is generic when it is particularly designated or physically segregated from all others of the same class. C. Things having a potential existence may be the object of the contract of sale. D. The sole owner of a thing may sell an undivided interest therein 11. X needs a size of 10 of model 101 of Leather Shoes regularly available to the public for her boyfriend Z, but the same is out of stock so she placed an order for one. On the other hand, Z placed an order for size No. 8, colored violet, (something not ordinarily made by the company) to be given to X. Which is correct? A. B. C. D.

Both are contracts of sale Both are contracts for a piece of work First is a contract of sale second is a contract for a piece of work First is a contract for a piece of work, second is a contract of sale

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

correct? A. B. C. D.

DD may compel V to accept the P12,000,000 first offered. V may compel DD to pay P15,000,000 V and DD should shoulder the P3,000,000 difference DD cannot compel V to accept the P12,000,000 first offered

13. If the object of the contract is specially made or manufactured at the specific order of another, it is a contract for a piece of work. This is A. B. C. D.

English rule Massachusetts rule New York rule Chicago rule

14. If the article already exists and subsequently acquired by another, it is a contract of sale, and if the article is still to be manufactured at the instance of another, it is a contract for a piece of work. This is A. B. C. D.

English rule Massachusetts rule New York rule Chicago rule

15. If the material used in the manufacturer of the article is more valuable, it is a contract of sale, and if the labor or skill is more valuable than the material used in the manufacture of the article, it is a contract for a piece of work. This is A. B. C. D.

English rule Massachusetts rule New York rule Chicago rule

16. The rule observed in the Philippines is A. B. C. D.

English rule Massachusetts rule New York rule Chicago rule

17. The Realty Installment Buyer Protection Act applies to all transactions involving the sale or financing of real estate on installment but it excludes the following except: A. B. C. D.

Sale or financing of industrial lots Sale or financing of commercial building Sale to tenants under the Land Reform Code Sale of residential condominiums

18. Delivery by merely pointing to the object of sale if it cannot be delivered to the vendee at the time of the sale is A. B. C. D.

Traditio longa manu Traditio brevi manu Traditio constitutum possessorium Traditio symbolica

19. Effected when the object of sale is already in the possession of the vendee at the time of sale so that delivery need no longer be made is A. B. C. D.

Traditio longa manu Traditio brevi manu Traditio constitutum possessorium Traditio symbolica

20. When the owner of the thing sells it to vendee, but continues to have possession or occupation of the thing not as owner but as tenant or lessee A. B. C. D.

Traditio longa manu Traditio brevi manu Traditio constitutum possessorium Traditio symbolica

21. Goods are deemed in transit A. When the buyer accepts delivery of the goods upon arrival at destination B. When the buyer intercepts and lawfully takes possession of the goods at any point before destination. C. From the time they are delivered by the seller to a common carrier or other bailee for transmission to the buyer, up to the time that the buyer or his agent takes delivery of the goods from the carrier or bailee. D. When the carrier or bailee, upon arrival of the goods at destination acknowledges to the buyer or his agent that he is holding the goods as bailee for the latter. 22. Goods are deemed no longer in transit A. If the goods are rejected by the buyer for a valid reason and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back. B. From the time they are delivered to a carrier by land, water or air for the purpose of transmission to the buyer. C. From the time they are delivered to a bailee for the purpose of transmission to the buyer until the buyer or his agent in that behalf, takes delivery of them from such bailee. D. If the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent in that behalf. 23. X sold to V orally a parcel of land for P200,000. X effected the delivery of the land. The payment of the price was to be made three month later. At the end of three month period A. B. C. D.

V may refuse to pay claiming in his defense the Statute of Frauds V may return the parcel of land to X X can collect from V because the contract has already been executed V may refuse to pay on the ground that there is no written contract to support the sale.

24. On January 15, 2010, X sold for P2M her house and lot to V. It was agreed that delivery of the house and lot, and the payment therefore, would be made on March 10, 2010. Unfortunately, Z a stranger negligently set the house on fire on February 25, 2010, and the house was completely destroyed. Which is correct? A. V is not required to pay the P2M since the contract had no subject matter. B. X must still deliver the lot but is excused from delivering the house, while V must still pay the P2M C. X must deliver the lot while V should pay only the amount equivalent to the value of the lot. D. X need not deliver the lot while V need not pay the P2M

25. If immovable property should have been sold to different vendees, the ownership shall be transferred to the person A. B. C. D.

Who have first taken possession in good faith Who presents the oldest title in good faith Who in good faith first recorded it in the Registry of Property Who have paid in good faith the purchase price in full

26. Using the preceding number, if movable property, it shall belong to the person A. B. C. D.

Who have paid in good the purchase price in full Who in good faith first recorded it in the Registry of Property Who presents the oldest title in good faith Who have first taken possession in good faith

27. Action by the vendee against the vendor to nullify the sale due to some vices or defects which render the object of sale unfit for the use intended or knowledge of which the vendee should not have bought the thing A. B. C. D.

Accion quanti minoris Accion reinvidicatoria Accion pauliana Redhibilitory action

28. Action to seek a corresponding reduction in price by reason of some vices or defects in the thing purchased A. B. C. D.

Accion quanti minoris Accion reinvidicatoria Accion pauliana Redhibilitory action

29. The redhibitory action based on the faults or defects of animals must be brought within A. B. C. D.

30 days from delivery to the vendee 40 days from delivery to the vendee 45 days from delivery to the vendee 6 months from delivery to the vendee

30. In contract of sale, if the price is absolutely simulated, the sale is A. B. C. D.

Unenforceable Voidable Void Rescissible

31. 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 installment C. Foreclose the chattel mortgage on the thing sold, if one has been constituted should the vendee’s failure to pay cover two or more installments D. Rescind the sale should the vendee fail to pay any installment.

32. The right of the seller to stop goods in transit, upon discovering that the buyer does not have the funds to pay for the goods A. B. C. D.

Pre-emptive right Appraisal right Voting right Right of stoppage in transit

33. A sold to B a parcel of land for P3.8M. The sale is evidenced by a memorandum of agreement of sale written in the Bicolano dialect. 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, 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 to the property. Later, C registered the deed of sale in her favor. The parcel of land shall belong to A. B. C. D.

B because he has got an older title C because he is the first to register C because he is the first to take possession No one as both sales are void

34. 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. B. C. D.

Waiver intentionada Waiver consciente Waiver cursunada Waiver inocente

35. Using the preceding number, where the seller is no longer liable A. B. C. D.

Waiver intentionada Waiver consciente Waiver cursunada Waiver inocente

36. 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. B. C. D.

Equitable mortgage Absolute sale On sale or return Pacto de retro sale

37. A sold to B his car and promised to deliver ten days later. The next day, after the sale to B, A sold the same car to C and immediately affected 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 the 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 38. X sold to V her Yamaha organ. It was agreed that X would fix the price a week later. At the agreed time, X named the price P10,000. V 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 X would fix the price 39. Not an implied warranty in a contract of sale A. B. C. D.

Right to sell the thing at the time of perfection of the contract Reasonably fit for the purpose they are acquired Merchantable in quality Free from charges or encumbrances not declared or known to the buyer

40. After the death of C, A, C’s son, sold his inheritance though its amount has not yet been determined to B for a consideration of P1,000,000. Which is correct? A. The contract is valid if the value of inheritance is at least equal to P1,000,000 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 41. X stole a fountain pen from P and sold it to Z Merchandise, a “store for pens”, which paid for it in good faith, not knowing it was stolen. The “store” then sold it to C, a student.Which is correct? A. C cannot be considered as the owner because the original seller (X) is not the real owner. B. P may recover the fountain pen from C without reimbursement because he is the legal owner. C. C became the owner because he purchased the pen from a merchant store D. C became the owner regardless of whether the seller is a store for pens or not because C bought it in good faith. 42. When goods are delivered to the buyer on “sale or return” for period of seven days, ownership of the goods passes to the buyer A. B. C. D.

Upon perfection of the contract Upon acceptance by the buyer of the offer of the seller Upon expiration of seven days Upon delivery of the goods

43. Quasi-traditio is equivalent to A. B. C. D.

Traditio longa manu Traditio brevi manu Traditio constitutum possessorium Execution of a public instrument

44. Vi imported radios from Taiwan and asked for 220 volts radios. The radios arrived clearly labeled 220 volts and Vi sold them to the public as such. Later the customer complained that the radios have been mislabeled by the manufacturer and that they were good only for 110 volts. As a consequence A. B. C. D.

Vi is liable to the vendees for any hidden defects even though he is not aware. Vi is not liable because he is in good faith Vi is not liable under the principle of “caveat emptor” or let the buyer beware The vendees may hold the manufacturer liable but not Vi because Vi specifically asked for 220 volts

45. If the redemption is to be made by the seller, one of the following need not be given to the Buyer A. B. C. D.

Expenses of the contract Interest on the price of the sale Necessary expenses on the thing sold Price of the sale

46. Not an element of the sellers right of stoppage in transit A. B. C. D.

The goods must be in transit The buyer must be insolvent The seller must be in possession of the goods The seller must be unpaid

47. A sold his only car to B for P300,000 to be paid as follows: P150,000 upon delivery of the car to B and the balance at P10,000 per month until full payment of the purchase price. Later the car gets burned in the possession of B through fortuitous event and without B’s fault, before full payment of the balance. Is B obliged to pay the balance? A. No, because the car was lost through 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 the owner. C. Yes, but A must give another car to B because of the principle “genus nunquam peruit” or generic thing never perishes D. Yes, because the principle “res perit domino” or the thing perishes with the owner. 48. A, B and C are co-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 of 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 not made in favor of a stranger D. C may redeem only 1 /2 of the interest sold by A to B 49. 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. B. C. D.

Both B and C B but not C C but not B A, B and C

50. Which of the following cannot be the object of a contract of sale? A. B. C. D.

Sale of credit Young animal not yet conceived at the time of perfection Land which the seller expects to buy Future inheritance

51. A offered for sale to B 20 cavans of wagwag rice and fixed the price per cavan at P10 over the price offered at Z’s store in Cainta Market. The price is A. Not certain because the price at Cainta Market is not stated B. Certain because it has got reference to another thing which is certain

C. Certain because there is a price ceiling for price of land D. Not certain so court may fix the price 52. X sold his motor vehicle to V who bought it for P200,000. It turned out however, that X has 2 motor vehicles: Toyota valued at P230,000 and Lancer valued at P220,000. Which is correct? A. B. C. D.

There is no contract of sale between X and V The parties may ask for interpretation or reformation The parties can ask for annulment of the contract V may choose between the Toyota or Lancer

53. X offers to V 100 electric fans for P80,000 payable in 60 days with 12 % interest per annum. V accepted the offer by telegram provided that interest is reduced to 6%. If there is no further communication between X and V relating to the terms A. B. C. D.

The contract is perfected because of the acceptance by V There is no contract yet between X and V because V made a counter offer The contract is perfected under the terms of X There is no contract yet unless v gives earnest money

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

Traditio longa manu Traditio brevi manu Traditio constitutum possessorium Execution of a public instrument

55. X sold her specific car to V for P200,00 payable in 5 equal installments. X delivered the car to V but a mortgage was constituted on the car to answer for the unpaid installments. V paid the first 2 installments but failed to pay the last 3 installments. X foreclosed the mortgaged property and sold it at public auction for P100,000. Which is correct? A. B. C. D.

X can recover from V the balance of P20,000 even if there is no stipulation to that effect X can recover from V the balance of P20,000 if there is stipulation to that effect X cannot recover the deficiency except if there is stipulation to that effect X cannot recover the deficiency even if there is stipulation to the contrary

56. Ownership of the thing sold is A. B. C. D.

Retained by the seller in “sale or return Transferred to the buyer upon constructive or actual delivery of the thing sold Acquired by the buyer upon perfection of the contract Transferred to the buyer upon acceptance of the price

57. X sold his horse to Y for P40,000. No payment has yet been made and the sales document does not provide the date of delivery. Before delivery and payment the horse gave birth to a baby horse, which is correct? A. B. C. D.

Y is entitled to the baby horse which was born after the perfection of the contract X is entitled to the fruit (baby horse) as Y has not paid the price yet X is entitled to the (baby horse) because it was born before his obligation to deliver arises Y should pay additional amount for the baby horse to be entitled to it

58. A contract of sale is in the stage of conception when A. B. C. D.

There is meeting of the minds Negotiations are in progress The parties come to an agreement The contract is perfect

59. A seller sold to a buyer a piece of jewelry at a price of P25,000. The contract provides that the buyer will pay the seller cash, P20,000 and for the balance, the buyer will give the seller a micro oven worth P5,000. What is the nature of the contract? A. B. C. D.

Sale Partly sale partly barter Barter Commodatum

60. X, the guardian of V, sold V’s house and lot worth P480,0000 for P430,000 A. B. C. D.

The contract can be rescinded because of inadequacy of price The contract cannot be rescinded because there is no fraud, mistake or undue influence The contract cannot be rescinded because all the elements of a contract are present The contract can be rescinded by X.

61. X leased to V a 5 Freezer for two years at a lease rental fee of P1,000 per month and signed an option in favor of V to buy the freezers at the end of the term of the lease at P50,000. All rental fee paid are to be considered as partial payment of the sale. After 12 months V was able to pay the rental fee for 9 months and was in arrears for three months. X terminated the lease contract and repossessed the freezers. The consequence of the transaction is A. B. C. D.

X can collect the rental fees for three months which are in arrears. X can collect the rental fees for the unexpired 12 months of the lease contract. When X took possession of the generator, he has no further action against V X in terminating the lease and repossessing the generator is obliged to refund the 9 months rental fee, paid by V even if there is a stipulation to the contrary.

62. X sold his car to Z for P60,000. No date was fixed for the performance of the obligation of the seller and the buyer. The obligation of X is A. B. C. D.

To deliver the car immediately because the sale is a perfected contract To deliver the car only after Z writes to X demanding the delivery of the car. To deliver the car only after Z pays the P60,000 To rescind the contract because there is no time fixed for the delivery

63. I. The vendor need not be the owner at the time the sale is perfected. It is sufficient that he is the owner at the time the thing sold is delivered. II. The sale of a vain hope or expectancy is voidable. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

64. I. There may be a contract of sale of goods, whose acquisition by the seller depends upon a contingency which may or may not happen.

II. If the consideration of the contract consists partly in money and partly in another thing, it shall be considered a barter if the value of the thing given as a part of the consideration exceeds the amount of the money or its equivalent. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

65. I. If the price is grossly inadequate, the sale is void. II. Whenever option money is given in a contract of sale, it shall be considered as part of the price and a proof of the perfection of the contract. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

66. I. Earnest money and option money both apply to perfected sale. II. In a contract of sale of personal property the price of which is payable in installment, the vendor may cancel the sale should the vendee fail to pay. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

67. I. Should the vendee’s failure to pay, cover two or more installments, the vendor may foreclose the chattel mortgage on the thing sold but he shall have no further action against the purchaser to recover any unpaid balance of the price, except if there is an agreement to the contrary. II. Sale is a consensual contract, therefore delivery or payment is not essential for perfection. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

68. I. The ownership of the thing sold shall be transferred to the vendee upon perfection of the contract. II. An unaccepted unilateral promise to buy or to sell a determinate thing for a price certain is binding upon the promissory. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

69. I. The husband and the wife cannot sell property to each other, as a rule. II. The sale of a piece of land or interest therein when made thru an agent is void unless the agent’s authority is in writing even if the sale itself is in s public instrument and has been registered.

A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

70. I. The expenses for the execution and registration of the sale shall be borne by the vendee, unless there is a stipulation to the contrary. II. If the same thing should have been sold to different vendees the ownership shall be transferred to the person who may have taken possession thereof in good faith. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

71. I. Any stipulation exempting the vendor from the obligation to answer for eviction shall be void. II. The vendor is responsible to the vendee for any hidden faults or defects in the thing sold only if he was aware thereof. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

72. I. If the animal sold should die within three (3) days after its purchase, the vendor shall be liable to the vendee. II. The fixing of the price can never be left to the discretion on one of the contracting parties. However, if the price fixed by one of the parties is accepted by the other, the sale is perfected. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

73. I. Option money is considered as part of the purchase price while earnest money is not. II. The Maceda Law refers to the sale of personal property by installments while the Recto Law refers to the sale of real property by installments. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

74. I. If two or more animals are sold together, whether for lump sum or for a separate price for each of them, the redhibitory defect of one shall give rise to the redhibition of the others. II. There is no warranty against hidden defects of animals sold at fairs or at public auctions or of livestock sold as condemned. A. First statement is true, second statement is false.

B. First statement is false, second statement is true. C. Both statements are true. D. Both statements are false 75. I. The ownership in the thing shall not pass to the purchaser until he has fully paid the price. II. If at the time the contract of sale is perfected, the thing which is the object of the contract has been partially lost, the contract shall be without effect. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

76. I. 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 a good title to the goods. II. If the vendee has renounced the right to warranty in case of eviction, and eviction should take place, the vendor shall only pay the value which the thing sold had at the time of sale. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

77. I. Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by installment. II. In case of doubt, a contract purporting to be an equitable mortgage shall be construed as a sale with a right to repurchase. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

78. I. The creditors of the vendor cannot make use of the right of redemption against the vendee, until they have exhausted the property of the vendor. II. Sale is a real contract because delivery is necessary to transfer ownership to the buyer. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false

CREDIT TRANSACTIONS (Cpar) PLEDGE AND MORTGAGE 1.Which of the following statements is true? A. Any stipulation in a contract of pledge authorizing the pledge to sell the thing pledged if the pledgor cannot pay is void.

B. In mortgage, the mortgagee is entitled to the entire proceeds of the sale of the thing mortgaged. C. In mortgage and in pacto de retro sale, the title to the property which is the subject matter of the contract is transferred to the other party. D. Real estate mortgage is an accessory contract. 2. In real estate mortgage, the mortgagor can sell the property mortgaged A. B. C. D.

Only if with the oral consent of the mortgagee Only if with the written consent of the mortgagee If not prohibited to sell Even without the consent of the mortgagee

3. Elements of contracts of pledge and mortgage, except A. B. C. D.

Pledgor or mortgagor must be the absolute owner Pledgor or mortgagor must have the free disposal of the thing pledged. The thing pledged or mortgaged may be appropriated if the debtor cannot pay. Pledge and mortgage are accessory contracts

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

Caveat emptor Dacion en pago Pactum comisorio Pacto de retro

5.A borrowed P100,000 from B, and as a security A pledged his ring to B. After the obligation falls due, A goes to b relinquishing ownership of the ring in favor of B. This is A. B. C. D.

Caveat emptor Dacion en pago Pactum comisorio Pacto de retro

6.A borrowed P30,000 from B, and as security, he pledged his ring, pair of earrings and necklace. On due date, A paid P20,000. As a result, A. B. C. D.

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

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

A cannot sell the land to C because of the agreement not to sell A can sell the land to C only if B consents in writing A can sell the land to C despite the agreement not to sell A cannot sell the land to C unless A pays the obligation

8. S, minor of 16 years old, sold her bracelet to B for P8,000. Later, B, needing money to pay her daughter’s tuition fee, borrowed P15,000 from C and as a security, pledged the bracelet to the latter. B failed to pay C resulting into auction sale of the bracelet in favor of D for P10,000 only. Which of the following statements is correct?

A. The title of B over the bracelet is not valid, hence the pledge, as well as the sale of said bracelet is likewise defective. The pledgor must be the owner of the thing pledged. B. The deficiency of P5,000 may still be recovered by C from B if there is a stipulation to this effect. C. C can no longer recover the deficiency of P5,000 from B. The pledge together with the sale is valid. The voidable title of B is valid because it is not yet annulled. D. If D was a purchaser in bad faith as he knew of the defective title of B over the bracelet from S, ownership will not pass to him (D). 9.

In the preceding number, assuming what was executed by B in favor of C was valid chattel mortgage which was eventually foreclosed and the bracelet was old to D at the public auction for the same amount, which statement is correct? A. The title of B over the bracelet is not valid, hence the chattel mortgage, as well as the sale of said bracelet is likewise defective. The mortgagor must be the owner of the thing mortgaged. B. The deficiency of P5,000 may still be recovered by C from B C. C can no longer recover the deficiency of P5,000 from B as the mortgage, together with the foreclosure sale, was valid. The title of B was still valid. D. If D was a purchaser in bad faith as he knew of the defective title of B over the bracelet, ownership will not pass to him (D).

10. S sold to b a specific car for P200,000 payable in four equal installments. S delivered the car to B but required B to mortgage it back to S to answer for the unpaid installments. B paid the 1st and 2nd installments but he failed to pay the balance. S foreclosed the mortgaged property and sold it at public auction for P80,000. As a result, A. B. C. D.

S can recover from B the balance of P20,000 S can recover from B the balance of P20,000 if there is stipulation to that effect. S cannot recover the deficiency any more even if there is stipulation to that effect S cannot recover the deficiency except if there is stipulation. PLEDGE

11. I. The creditor cannot appropriate the things given by way of pledge or mortgage, or dispose of them, except if there is a stipulation to the contrary. II. The indivisibility of a pledge or mortgage is affected by the fact that the debtors are solidarily liable. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

12. I. A pledge or mortgage is indivisible, except if the debt may be divided among the successors in interest of the debtor or of the creditor. II. In case of pledge of animals, their offspring shall pertain to the pledge of the animals. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

13. I. The creditor can use the thing pledged even without the authority of the pledgor. II. If through the negligence or willful act of the pledge, the thing pledge is in danger of being lost or impaired, the pledge may cause the same to be sold at a public auction. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

14. I. If the thing pledged is returned by the pledge to the pledgor or owner, the pledged is extinguished, except if there is stipulation to the contrary. II. If subsequent to the perfection of the pledge, the thing is in the possession of the pledgor or owner there is a conclusive presumption that the same has been returned by the pledge. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

15. I. A statement in writing by the pledge that he renounces or abandons the pledge is sufficient to extinguish the pledge only if accepted by the pledgor or owner and the thing pledged is returned. II. At the public auction, the pledge may also bid and his ofer shall be valid even if he is the only bidder. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

16. I. The sale of the thing pledged shall extinguish the principal obligation provided the proceeds of the sale are equal to the amount of the principal obligation. II. If the price of the sale is more than the amount of the obligation, the debtor shall be entitled to the excess, unless it is otherwise agreed. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

17. I. If the price of the sale is less than the amount of the obligation the creditor shall not be entitled to recover the deficiency except if there is a stipulation to the contrary. II. If two or more things are pledged, the pledgor may choose which he will cause to be sold, unless there is a stipulation to the contrary. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

18. I. A pledge shall not take effect against third person if a description of the thing pledged and the date of the pledge do not appear in a public instrument. II. If after the auction sale, the thing pledged is not sold, the pledge can appropriate the thing pledged. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

19. I. Z pledged his ring to B for P20,000. Z failed to pay his obligation on time. B sold the ring at a public auction for P16,000. B cannot recover P4,000 from Z even if there is stipulation. II. Using the same facts, if the proceeds of sale is P24,000, Z can recover the excess of P4,000 if stipulated. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

20. I. In sale at public auction, the pledgor or owner may be abider and shall have a better right if he should offer the same terms as the highest bidder. II. Pledge is a real contract. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false. MORTGAGE

21. I. A stipulation prohibiting the owner from alienating the immovable mortgaged shall be void. II. The equity of redemption refers to the right of the mortgagor to redeem the mortgaged property within a certain period of time after it was sold to third person. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

22. I. The right of redemption refers to the right of the mortgagor to redeem the mortgaged property after his default in payment but before the sale. II. The registration in the Registry of Property is necessary for the validity of a contract of real estate mortgage. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

23. I. Except in case of sale of personal property in installments, if the proceeds of the sale is less than the principal obligation, the creditor-mortgagee can recover the deficiency. II. A borrowed P100,000 from B payable in 10 equal monthly installments. To secure payment of the loan, A executed chattel mortgage on his Mercedes Benz car. If A violates the condition of the mortgage, and the car was foreclosed and sold at a public auction but the proceeds is less than the collectible amount, B cannot recover the deficiency. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

24. I. In real estate mortgage the mortgagor can sell the property mortgage even without the consent of the mortgagee. II. In chattel mortgage, the mortgagor cannot sell the thing mortgage even with the written consent of the mortgagee appearing at the back of the mortgage. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

25. I. Chattel mortgage like pledge is a real contract. II. In chattel mortgage like pledge the possession of the thing mortgaged is vested in the creditor. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false. LOAN

26. D deposits his momey by way of a savings account with C Bank. The contract between D and C is A. B. C. D.

Deposit Agency Commodatum Mutuum

27. I. In mutuum or loan, one of the parties delivers to another something not consumable so that the latter may use the same for a certain time and return it. II.Mutuun is essentially gratuitous. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

28. I. In commodatum one of the parties delivers money or consumable thing upon the condition that the same amount of the same kind and quality shall be paid. II.In commodatum and mutuum ownership of the thing loan is transferred to the borrower. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

29. I. Commodatum and mutuum involve real and personal property. II. The bailee in commodatum acquires the use of the thing loaned and its fruits. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

30. I. The bailee in commodatum can lend or lease the object of the contract to a third person. II. When there are two or more bailees to whom a thing is loaned in the same contract, they are liable jointly. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

31. I. A contract whereby one person transfers the ownership of non-fungible things to another with the obligation on the part of the latter to give things of the same kind, quantity and quality shall be considered a loan. II. Precarium is a kind of mutuum where the bailor may demand the thing loaned at will. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false. DEPOSIT

32. I. An agreement to constitute a deposit is binding and is perfected from the moment there is meeting of minds. II. Movable and immovable things may be the object of judicial deposit. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

33. I. A contract of deposit must be in writing. II. The depositary can make use of the things deposited even without the express permission of the depositor. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

34. I. Fixed, savings, and current deposits of money in banks and similar institutions shall be governed by the provisions concerning simple loan. II. The depositary can demand that the depositor prove his ownership of the thing deposited. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

35. I. Unless there is a stipulation to the contrary, the depositary cannot deposit the thing with a third person. II. When the depositary has permission to use the thing deposited, the contract loses the concept of a deposit and becomes a loan or commodatum even when safekeeping is still the principal purpose of the contract. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.

36. I. The thing deposited shall be returned with all its products, accessories and accessions. II. A contract of deposit is perfected from the moment there is meeting of minds. A. B. C. D.

First statement is true, second statement is false. First statement is false, second statement is true. Both statements are true. Both statements are false.